BINDINa LIST JAN 1 1923
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ESTABLISHED 1867
The Monetary Times
Trade Review and Insurance Chronicle
OF CANADA
-0^
i j^j^B 81 1922
Index to Volume 66
January to June, 1921
^ lb I
Published every Friday by The Monetary Times Printing Co. op Canada, Limited
Head Office: Corner CHURCH and COURT STREETS. TORONTO, ONTARIO
Telephone Main 7404, Branch Exchange connecting all Departments
Cable Address: "Montimes, Toronto"
Hf
The Monetary Times
INDEX TO VOLUME 66
January to June, 1921
CONTRIBUTORS AND THEIR
CONTRIBUTIONS
PAGE
Allan, John A., (Recent Mineral
Developments in Alberta), March
18 26
Arnold, Hugh E., (An Aspect of th»
Exchr-nge Problem) , March, 18.. 36
Barker, A. B., (Co-operative Mar-
keting of Grain), March, 4 .... 18
Barker, A. B., (Section 88 of the
Bank Act), April, 15 22
Barker, A. B., (Foreign Trade
Machinery is Delicate), May, 13 IS
Barker, A. B., (Why Bank Credits
Are Short Tenn), May, 27 .... 22
Barker, A. B., (New Methods in Oil
Promotions) , June, 17 3
Cassidy, Edwin, (American and
Canadian Tnast Companies),
May, 13 20
Gates, W. B., B. A., (Should Cost of
Imperial Navy be Shared in),
April, 29 5
Gates, W. G., (Turnover Tax and
an Extended Tax on Sales). May,
6 5
Chichanot, E. L., (Unemployment
Situation in Canada), March, 11 14
Chicanot, E. L., (Immigration and
Unemployment) , May, 20 ... . 18
Chicanot, E. L., (American Interest
in Canada), May, 27 18
Clarke, J. L., (Short and Long Term
Rural Credits), April, 22 . . . . 14
Dower, J., (Quarter Billion Loss,
Who's Responsible ?), May, 20 . . 32
Drummcnd, A T.. (Dominion Con-
trol of Water-Powers), May 27 14
Elliot, J. Courtland, (Economic
Developments in Western Can-
ada), January, 21 37
Finlayson. G. D., (Fifty Years of
Fire Insurance in Canada) , Feb-
ruary, 11 18
Good, John, (New Hazards to Plate
Glass), January, 14 33
Howard, B. E.," (The Spirit of
Enterprise Desei-ves Fostering) ,
Febi-uarv, 11 36
Hunter, R. W., C. A., (Premises
Tie up Banking Capital), May. 20 30
Jackson, Gilbert E., (Unemploy-
ment Insurance in Canada, Possi-
bilities of). March, 18 5
James, F. J., (Local Financing
Proved Disappointment) , Febru-
ary 4 22
Johnston, V. Kenneth, (Advantages
of the Gross Sales Tax), May, 6 14
Jones, S. L., (Transatlantic Trade
Relations), January, 21 34
Lauriston, Victor, (Investing in
Oil), May 20 28
Lyell. Angus. TThe Bankruptcy Act
in Operation), Janurr:;- 14 . . . . 2(5
Lvoll. Angus (WTiat Labor Wants?).
January, 21 41
PAGE
Lyell, .Ang-us, (Organized Farmers'
Movement is Economic), Febru-
ary, 18 34
Lyall, Angus, (The vVheat Pool), ^/
'March, 2.5 18
Lyell, Angus, (Alberta's Municipal
"Hospital System), April, 1 .. .. 24
McLeod, Alfred W., (Industrial In-
surance), March, 25 26
Noble, J. L., (British Columbia Fire
Underwriters' Association) , May,
27 d28
Paterson, R. J. R., (Municipal Ac-
countin£r and Municipr.l Finance),
March, 18 18
Pratt, H. J., (The Financing of y
Public Utilities), April, 8 .. .. 22''
Reid, E. E.. (Life Insurance With-
out Medical Examination), Feb-
ruarv, 18 5
Rife, Raleis-h 3., (Financial Rela-
tions Avith tho United States),
January 14 IS
Smith, R. Goldwin, (Mining Produc-
tion in 1920), January, 21 .. .. 18
"Semner Paratus" (Bankin"- Op"or-
tunit-'es an 1 the Aftei-math) , Feb-
i-uarv. 18 18
Sto»-hPnson, H. R., (Health and
Accident Features in Life Poli-
cies) , January, 28 5
Tavlor, Jame<;, (Adiustment of Fire
Tnsurancp Losses^. May, 27 . . . . 24
Wainwris-ht, Cpcil S.,_ (Fire
Insurance in Canada in 1920),
February, 4 26
PRIMARY INDUSTRY
Alberta Farmers through with
Gambling, May, 6 8
Alberta, Recent Mineral Develop-
ments in, Marcli 18 26
Asbestos in Quebec, February, 25 . . 44
British Columbia Fisheries —
Mav, 13 28
M-^y 27 36
Coal Mining in Nova Scfitia, Janu-
ary, 14 44
Coal' Trade in Nova Scotia, Steel
and. May, 20 36
Coal Trade is Depressed, January,
21 48
Cobalt Ore Shipments in 1920,
January, 21 _. . 26
Co-operative Marketing of Grain,
March, 4 18
Cron Outlook, The (Editorial) . June
17 4
Crops, Potatoes, Roots and Fodder,
January, 21 14
Crops. Rpcord Value of Canadian
Field, February, 11 14
Farmers Hit Bv Coal Mining Situa-
tion. April, 29 12
Farmina: Operations may be Cui'-
tailed, April, 15 14
Farming Outlook in the West,
April, 29 12
PACE
Farmers Through with Gambling,
Alberta, May, 6 8
Field Crops, Record Value of
Canadian, February 11 14
Fisheries in British Columbia —
May, 13 28
May 27 • • 36
Flax Growing in Nova Scotia, April,
1 28
Forest P'ires Starting Again (Edi-
torial), May 13 10
Forests, Mean to Canada, What
They, Januai-j% 28 14
Gold and Silver Production, World's,
April, 22 36
Grain, Co-opevative Marketing of, /
March, 4 18 '^
Land Values Increased, Average,
March, 25 • ■ 32
Lumbermen's Association, Canadian,
February, 11 26
Mineral Developments in Alberta,
Recent, March 18 26
Mining Production Increased in
1920, January, 21 18
Mineral Product'on Increased in
1920, March, 25 22
Miu'ng in Nova Scotia, May, 13 . . 28
Mining Properties, Taxation of,
February, 25 42
Newfoundland's Industries Under-
went Strain in 1920, February, 11 30
Nickel Plant Affected by Metal
Market, April 8 28
Nob'e Faini is Big Enterprise, June,
1/ 1
Nova Scotia Mining, May, 13 ... . 28
Oil, Invesfng in. May, 20 2S
Oil Promotions, New Methods in,
June, 17 3
Ore Shipments in 1920, Cobalt,
January, 21 • ■ • • "'^
Promotions, New Methods in Oil,
June, 17 3
Salmon Pack. Curtailment of British
Columbia, May, 27 36
Seedino- Now General in Alberta,
April, 29 7
Silver Production, World's, Gold
and, April, 22 36
Weather, A Ganble on the (Edi-
torial), Apr ' C2 10
Wheat Pool. The, March. 25 ... . 18
Wheat Touches the Dollar Mark,
(F'iitorial), April 29 10
Wrr] 'Gro'^'.-s Establish British
Agency, June 24 11
Wool Growers Hopeful for Absorp-
tion of Production, May, 20 ... . 36
LIFE INSURANCE
Accident Features in Life Policies,
Health and, January, 28 5
Actuarial Society of America Meet-
ing, May, 20 49
Agency Busmets, Facilitating
(Editorial), March 11 10
Agents, Control of Life Insurance
(Editorial), May, 27 9
Index
THE MONETARY TIMES
January 1 lo June 30, 1921
PAGE
Amendments to Dominion Insurance
Act (Editorial), April 22 9
Banks vs. Life Insurance, March, 18 32
Companies' Power to d« Business,
Dominion, April, 8 5
Compensation, Proposed Increase in
Workmen's, February, 11 ... . 5
Dominion Insurance Act Amend-
ments (Editorial), April, 22 . . . . 9
Examination, Life Insurance With-
out Medical, February, 18 ... . 5
Health and Accident Features in
Life Policies, January, 28 ... . .5
Income Tax, Life Insurance and the
(Editorial), May, 20 10
Insurance Act Amendments, Domin-
ion (Editorial), April, 22 9
Insurance Companies' Position Im-
roved (Editorial), April 5 .... 9
Insurance Companies, The Scope of
Editorial), January, 28 9
Insurance in Ontario in 1920, May,
20 14
Insurance in 1920, Records Estab-
lished, April, 5 5
Life Insurance Agents. Control of
(Editorial), May, 27 9
Life Insurance and the Income Tax
(Editorial), May, 20 10
Life Insurance a Profession,
Making: (Editarial), March, 25 10
Life Insurance Business Conser-
vation of (Editorial), March, 4 9
Life Insurance Taxes in Quebec,
January, 14 14
Life Insurance, United States Tax
en, June 17 12
Life Insurance vs. Banks, March, 18 32
Life Insurance Without Medical
Examination, Febniary, 18 . . . . 5
Life Policies, Health and Accident
Features in, January, 28 5
Life Policyholder, Reinstatement of,
May. 6 26
f ife Underv/riters Meet =n Winni-
pet;', April, 8 g
Medical Examination, Life Insur-
ance Without, February, 18 5
Mutual Benefit Raises Rates,
Travellers' January, 21 34
Ontario Insurance in 1920, May, 20 14
Policyholder, Reinstatement of Life
May, 6 26
Profession. Making Life Insurance
a (Editorial). March, 25 10
Quebec, Life Insurance Taxes in,
Januarv, 14 ... 14
Soldiers Insurance, March, 18 ... . 20
Tax on Life Insurance, United
States, June, 17 12
Travellers' Mutual Benefit Raises
Rates, January, 21 34
Underwriters Meet in Winnipeg,
Life. Anri], 8 8
United States Tax on Life Insur-
ance. June. 17 12
Winnipeo-. Life Underwriters Meet
in. April. R 8
Workmen's Compensation. Proposed
Increase in, February, 11 5
TRADE AND INDUSTRY
Asbestos in Quebec, February, 25 44
Board of Trade Reports —
February, 4 18
Februarv, 11 '..... 30
Britisli Capital in Canadian Indus-
t'-\-. May. 20 36
British Cattle Embargo, The
(Editorial), April, 1 9
British Manufacturing in Canada
Affected by Exchan<re, Anril, 1 .. 28
Buildinn- Permits in 1920, February,
1.8 ." . 26
Buildin" Permits, November, Janu-
ary, 14 36
PACE
Building Permits in December,
February, 18 22
Building Permits, January, March,
18 22
Building Permits for February,
April, 22 24
Building Permits in March, May ,20 22
Building Permits in April, June, 24 11
Business at the Coast, May, 13 . . 7
Business Improvement in the West,
Signs of, January 14 8
Business, Too Much Cancellation of,
(Editorial), Januai-y, 14 10
Canadian Manufacturers Associ-
ation Convention, June, 17 ... . 10
Canadian National Export Club,
April, 29 8
Cattle Embargo, The British (Edit-
orial), April, 1 9
Cement Production in Canada, Feb-
i-uai-y, 18 44
Central Factories Building, Pro-
poses, March, 4 8
Coast, Business at the. May, 13 . . 7
Commercial Failures in Canada in
1820, January, 14 24
Dominion Industrial Products, Ltd.,
February, 18 44
English Electric Company will
Enter Canada, March, 25 44
Export Club, Canadian National,
April, 29 8
Factories Building, Proposes Cent-
ral, March, 4 8
Failures, A Crop of Business, April,
^9 22
Failures, Business. (See every
issue).
Failures in 1920, Analysis of,
March, 25 38
Failures in Canada in 1920, Com-
mercial, Janusry 14 24
Prilures, Speculation and (Editor-
ial), January, 28 10
Flour Mills on Part Time, March, 11 28
Foreign Trade Machinery is Deli-
cate, May, 13 ... : 18
Forests Mean to Canada, What the,
January, 28 14
Great Britain Will Soon be in
World's Markets Again, April, 29 28
Hamilton's Industrial Growth in
1920, February, 11 44
Howard Smith Paper Mills, Febru-
ary, 4 44
Industries are Reviving, June, 17 9
Industry, Municipalities Suffer by
Bonujing, May 6 ". 10
Industry, Immigration and, (Edit-
orial), March, 25 9
International Trade Situation in
Canada, Mrv 27 7
Iron and Steel, in 1920, February, 11 44
Iron and Steel Industry, Outlook
for is Good, February 18 44
Manufacturers* Association Conven-
tion, Canadian, June, 17 10
Newfoundland's Industries Under-
went Strain in 1920, February, 11 30
New Railways Not Wanted (Editor-
ial), April, 8 10
Nickel Plant Closed, April, 8 . . . . 28
Paper and Its Use (Editorial),
March, 18 10
Pap'r Price, Drop in, February, 25 44
Pulp and Paper Developments, Jan-
uary, 14 44
Pulp and Paper Developments,
January, 21 48
Pulp and Paper Developments,
April, 15 28
Puln and Paper Developments, May,
27 36
Puln and Paper Industry in the
West, February, 25 44
Puln and Pan°r Industry is Troubl-
ed, April, 22 ■ 28
PACE
Pulp and Paper Industry Meeting
with Keen Competition, April, 29 28
Pulp and Paper Industry (5utlook,
January, 28 36
Pulp and Paper Industry, Tracing
the Growrth, February, 11 44
Pulp and Paper Mill at Connaught
Station, May, 27 36
Pulp and Paper Prospects of the
West, March, 4 32
Pulp and Paper Trade Prospering,
March, 25 44
Pulp Mills Closed, May, 20 36
Rail Orders Will Help Steel Indus-
try, January, 28 36
Railway Situation Considered in
Parii.ament, March 25 7
Railways Not Wanted, New, (Edit-
orial), April, 8 . 10
Retailers Now Taking Losses, May,
20 5-
Rubber's Rise and Fall (Editorial),
April, 15 10
Salmon Pack, Curtailment of Brit-
ish Columbia, May, 27 36
Shawinigan Water and Power Ship-
ping Line, April, 15 28
Sherbrooke and New Industries,
March, 25 44
Shipbuilding in British Columbia
in 1920, Steel, January, 14 ... . 44
Shipbuilding, Some Hope for, April,
29 28
Shipping, Year of Contraction in,
March, 4 20 v^
Steel and Coal Trade in Nova
Scotia, May, 20 36
Steel in 1920, Iron and, February,
11 .". 44
Steel Industrv and Railway Equip-
ment, April, 8 28
Steel Industry Cannot Expect to
Look to Britain, February, 4 . . 44
Steel Industry Immediate Revival
Not Expected, January, 21 ... . 48
Steel Industry, Outlook is Good.
Febniary, 18 44
Steel Industry, Rails and the, Jan-
uary, 28 36
Steel Industry, The, May, 27 ... . 36
Steel Rails May Be Needed in
Large Quantities. January, 14 . . 44
St°pl Shinbuilding in British Colum-
bia in 1 920, January. 14 44
Tanning Industry in 1920, (Editor-
ial), January, 14 10
Textile Companies Reduce Wages,
January, 28 36
Textile Conditions Improving, Feb-
ruary, 18 44
Textile Outlook Good, January, 14 44
Textile Prices Lower, January, 21 48
Toronto Industries in 1920, Febru-
ary, 4 44
Trade Machinery is Delicate,
Foreign, May, 13 18
Trade Mark, Registration of. May,
13 26
Trade Mark, Registration of, Mav,
20 34
Trade of Canada by Classes —
Januarv, 21 22
February, 25 22
March, 25 24
April, 29 22
Mav, 20 24
June, 24 9
Trade cf Canada by Countries —
February, 4 24
March, 4 22
Anril. S 20
Mav, 13 44
June, 17 12
Trade Outlook, The, January, 28 . . 16
Trade Relations, Transatlantic,
January, 21 34
January 1 to June 30, 1921
THE MONETARY TIMES
Index
PAGE
Trade Situation in Canada, Inter-
national, May 27 7
Transatlantic Irade Relations, Jan-
uary, 21 Si
Vancouver Board of Trade, March,
25 ^
Victoria to Draw Tourists, May, 20 8
West, Signs of Business Improv-
ment in the, January, 14 8
Wholesale Prices, Index Numbers
of—
January, 21 24
February, 25 24
March, ^5 14
April, 29 24
May, 27 24
June, 24 10
Woollens Price, Drop in, March, 4 32
Woollmgs Company, T. S., May, 27 36
FIRE AND MISCELLANEOUS
INSURANCE
Accident Features in Life Policies,
Health and, January, 26 5
Accident Payments, Some Sickness
and, February, 'lt> 34
Adjustment of Fire Insurance
Losses, May, 21 24
Agents' Commissions in Ontario,
Fire, January, 21 8
Alberta Hail Insurance Board,
March, 18 14
Alberta Workmen's Compensation
Results, February 25 28
Amendments to Dominion Insur-
ance Act, (Editorial), April, 22 9
Automobile Decision Case Postpon-
ed, June, 24 9
Automobile Insurance Next to Fire,
April, 15 41
Automobile Insurance Points, March
11 d24-
Bonded, Who Can Most Safely Be ?
(Editorial), April, 1 10
British Columbia Fire Agents' Con-
ference, February, 4 24
British Columbia Fire Underwriters'
Association, May, 27 d28
Caxton Insurance Company Obtains
Licens», February 11 46
Co-insurance and Use and Occupan-
cy, April, 8 18
Commissions, Fire Insurance Costs
and (Editorial), January, 14 . . 9
Commissions, Fire Insurance Costs
and (Letter to the Editor), Janu-
ary, 28 7
Commissions, Protests Regulation
of Insurance, January, 14 . . . . b32
Companies' Powers to Do Business,
Dominion, April, 8 5
Dominion Insurance Act Amend-
ments (Editorial), AprU, 22 .... 9
Dominion of Canada Guarantee &
Accident Co., February, 25 ... . 34
Edmonton Fire Underwriters,
March, 4 d26
Farm Property, Insurance Rates on,
June, 17 10
Fire Agents' Commissions in Ont-
ario, January, 21 8
Fire Insurance Costs and Commis-
sions (Editorial), January 14 .. 0
Fire Insurance Losses, Adujstment
of, May, 27 24
Fire Agents' Convention British
Columbia, February, 4 25
Fire Insurance Case, April, 22 . . 26
Fire lasurpnee Costi and Commis-
sions (Letter to the Editor), Jan-
uary 28 7
Fire Insurance in Canada in 1920,
February, 4 26
Fire Insurance in Canada, Fifty
Years of, February, 11 18
PAGE
Fire Insurance Policies, Mortgage
Clauses in, February 25 3S
Fire Losses, Decembei-, January, 14 22
Fire Losses, January, February, 11 26
Fire Losses, February, March, 11 24
Fire Losses, March, April, 8 . . . . 24
Fire Losies, April, May 13 24
Fire Loss, Quarter Billion, Who's
Responsible ? May, 20 32
Fires, Recent, (See every issue).
Fires Starting Again, Forest (Edi-
torial), May, 13 10
Fire Underwriters' Association,
British Columbia, May, 27 . . . . d28
Fii-e Underwriters of Ontario,
Mutual, February, 25 36
Forest Fires Starting Again, May,
13 10
Guarantee Bonds, Surety and (Edi-
orial) , April, 1 10
Hail Association, Saskatchewan
Municipal, March, 25 6
Hail Insurance Board, Alberta,
March, 18 14
Hazards to Plate Glass, New, Janu-
ary, 14 33
Healtn and Accident Features in
Life Policies, January 28 5
Health Insurance, Would Have
National, March, 11 d24
Industrial Insurance, March, 25 . . 26
Insurance Act Amendments, Domin-
ion (Editorial), April, 22 . . . . 9
Insurance Against Unemployment,
(Editorial), March, 18 9
Insurance and Fire Prevention,
Manitoba, March, 11 18
Insurance Commissions, Protests
Regulatioci of, January, 14 . . . . b32
Insurance Companies' Position Im-
proved, (Editorial), April, 5 .. 9
Insurance Companies, The Scope of,
(Editorial), January, 28 9
Insurance in Ontario m 1920, May,
20 14
Insuranci in 1920, Records Estab-
lished, April, 15 5
Insurance Licenses and Agency
Notes, (See every issue).
Insurance Rates to Be Revised,
Halifax, March, 25 57
Losses, Adjustment of Fire Insur-
ance, May, 27 24
Manitoba Fire Losses in 1920, Feb-
ruary, 18 8
Manitoba Insurance and Fire Pre-
vention, March, 11 18
Merchants Casualty Co. of Winni-
peg, February, 18 46
Merchants' Fire Risks, Retail,
January, 14 35
Mortgage Clauses in Fire Insur-
ance Policies, February, 25 ... . 38
Motor Accident, Decision on, June,
24 8
Municipal Hail Association, Saskat-
chewan, March, 25 6
Mutual Fire Insurance, Western
Canada, January, 21 44
Mutual Fire Underwriters of Ont-
ario, February, 25 36
National Health Insurance, Would
Have, March, 11 d24
Newfoundland Fire Losses Heavy,
March, 4 18
North ■ British and Mercantile
Insurance Co. Changes, March, 4 12
Nova Scotia's Fire Losses, March,
18 32
Occupancy, Co-insurance Use and,
April, 8 18
Ontario Insurance in 1920, May, 20 14
Ontario, Mutual Fire Underwriters
of, February, 25 36
Plate Glass, New Hazards to, Jan-
uary, 14 33
PACE
Quai-ter Billion Loss, Who's Re-
sponsible, May, 20 32
Retail Mei-chants Fire Risks, Jan-
uary 14 35
Saskatchewan Municipal Hail
Association, March, 25 6
Scope of Insurance Companies, The,
(Editorial), January, 28 9
Scottish Canadian Assurance Com-
pany Obtains License January, 14 35
Sickness and Accident Payments,
Some, February, 25 34
Sickness Insurance, Higher Rates
for, February, 25 34
Soldiers' Insurance, March, 18 ... . 20
Surety and Guarantee Bonds, (Edi-
torial), April, 1 10
Underwriters' Association, Brutish
Columbia Fire, May, 27 d28
Unemployment, Insurance Against
(Editorial), March, 18 9
Unemployment Insurance in Can-
ada, Possibilities of, March, 18 . . 5
Unemployment Insurance, Ways
and Means of, January, 21 ... . 7
Use and Occupancy, Co-insurance,
and, April, 8 18
War Veterans Insurance, Advises
Changes in, June, 17 1
Western Canada Mutual Fire Insur-
ance, January, 21 44
Workmen's Compensation Results,
Alberta, February, 25 28
COKI-ORATIOW SECURITIES
AND FINANCE
Abitibi Dividend Rate Cut, April, 1 38
Abitibi Power and Paper Co., Bond
Issue, March, 4 42
Alberta Flour Mills Stock Issue,
January, 28 8
Anglo-American Motors ? Ltd.,
(Editorial), M.iy 20 10,46
Atlantic Sugar Refineries, Ltd.,
February, 18 54
Bankruptcy Act, Action Under,
February, 25 42
Bell Telephone Co. of Canada, Jan-
uary, 14 59
Bell Telephone Company, Jariuary,
28 50
Bell Telephone Co. of Canada, April,
8 42
Bell Telephone Co. of Canada, April,
15 44
Bell Telephone Co. to Make Stock
Issue, May, 20 46
Black Lake Asbestos and Chrome
Co. Ltd., March, 4 46
Bond House, Operation of a (Edi-
torial), February, 18 10
Bond Sales, January, February, 11 24
Bond Sales, February, March, 11 . . 22
Bond Sales, March, April, 8 . . . . 14
Bond Sales, April, May, 13 22
Bond Sales, May, June, 24 7
Britain, Investment Relations With,
(Editorial), May, 13 9
British America Nickel Corp., April,
8 38
British America Nickel Company,
June, 24 7
British Columbia Telephone Com-
pany, April, 22 42
British Empire Steel Corp., Febru-
ary, 25 58
British Empire Steel Corporation,
New, April, 1 14
British Empire Steel Corporation,
April, 15- ; 42
British Empire Steel Corporation,
May, 27 50
Brompton Bonds Are Offered, May,
13 3S
Business Losses, Some Notable,
May, 27 10
Index
THE MONETARY TIMES
January 1 to June 30, 1921
PAGE
Business, Stock Markets and, April,
22 10
Canada Land and Irrigation
Company, March, 25 54
Canadian I'acitic Stock Takes Dras-
tic Slump, June 24 8
Canada Permanent Mortgage Cor-
poration to Merge, June, 'At . . . . 1
Canada Steamship Lines, Ltd., i
February, 25 54 '
Canada Steamship Lines, Ltd., /
April, 22 42 "
Canadian General Electric Changes,
April, 1 12
Canadian General Electric Would
Increase Common, April, 29 ... . 44
Canadian Pacific Financing (Edi-
torial), May, 13 9
Canadian Salt Company Bond
Offering, May, 6 38
Canadian Western Natural Gas,
Light, Heac & Power Co. Ltd.,
January, 21 62
Carriers, JJamage When Goods Lost
by, April 22 26
Clarke Bros. Bond Issue, March, 25 04
Commercial Securities Corp., Ltd.,
February, 18 20
Companies' Power to do Business,
Dominion, April, 8 5
Consumers Gas Stock Subscribed
for —
January, 14 54
January, 21 58
Consumers' Gas Company, January,
28 50
Corporation Finance, (See every
issue) .
Corporation Securities Market, ( See
every issue).
Corporations, Taxes on (Editorial),
June, 24 4
(3osgrave Brewery Co., Februarv,
18 54
Cosgrave Export Brewery Co.,
Februai-y, 25 54
Dfmaa-e When Goot'S Lost by
Can-iers, April, 22 26
Davidson Consolidated Gold Mines,
Ltd., January, 21 62
Dominion Companies' Powers to Do
Business, April, 8 5
Dominion Foundries and Stesl, Ltd.,
Febi-uary, 25 54
Equitable Securities, Ltd., Febru-
ary, 11 35
Express Companies' Substantial
Increase, February, 11 38
Felger Livestock and Grain, Ltd.,
(Editorial), February, 11 . . . . 10
Financing of Public Utilities, April,
8 22
Fort William Pulp Company Issues
Bonds, Febniary, 4 54
Eraser Companies Offer Securities,
March, 11 38
Goodyear Tire and Rubber Co. of
Canada, April, 15 42
Gordon Ironside and Fr.res Co., Ltd.,
January, 21 62
Gi'and Trunk Claim Against U. S.
Government, January, 14 42
Grand Trunk Maturities in Britain,
January, 28 46
Grand Trunk Railway Borrows in
United States, January, 21 ... . 58
Grand Trunk Retires Notes in Lon-
don, March, 18 50
Great West Garment Co. Bonds,
March, 25 54
Hamilton Car Co., Ltd., April, 15 42
Howard Smith Paper Mills Bonds,
March, 4 a26
Howard Smith Paper Mills Finan.
cing, February, 25 54
PACE
Howard Smith Pulp and Paper
Bonds, March, 11 38
Hudson's Bay Land Sales, Febru-
ary, 25 . . ; 38
Imperial lODacco Co. of Canada,
i" eoruary, 11 . 54
Insolvency, Voluntary Winding up
Does Not Constitute, February 18 42
International narve:=ier jo.ni own-
ership I'lan, (Editorial), Febru-
ai-y, iS 10
Investing in Oil, May, 20 zo
Investment Houses Ji,xpect Improv-
ea ouyjng. May, 6 12
Joint Ownership Plan, A (Editor-
ial), I'ebruary, 1« 10
Laurentide Power Bond Issue,
.rt-prji, b 3S
Lauientian I'ower isona urtering,
June, XI 3
Levis County Railway, March, ii . . i'A
i-iMutea IjiaoUity companies m the
Stock brokerage business (,Ji,di-
torial), April 1 .. 10
LiaoiJity ol atock iiJxchange xviem-
bers (Eaitoz-ial), April, 1 .. .. 10
Loan ana irust (_;ompany returns
to be Cliecked, June 24 1
Lo:;n Dy Company to &.iaieholdors.
Action on, j^eoruary, 11 42
Loan Companies la2u i'igures,
Ontai'io, March, 25 20
Loan Companies to iVlerge, June, 'Zi 1
London & Canadian Loan & Agency
Company to Merge, June 24 ... . 1
Mack Furnace Co., Ltd., April, 8 . . 38
Maritime Telegraph and telephone
Co. Bonds, January, 21 58
Morris tiros. !■ ailure (JJditorial),
Febi-uary, 18 10
Mortgage Companies of Ontario,
Land, March, 25 40
Mortgage Diecov.nt and Finance,
Ltd., (Editorial), March 11 . . . . 10
Mount Royal Hotel Company,
February, 4 54
Mount Royal Hotel Bond Offering,
February, 11 54
National Brick Company Will Re-
organize, May, 13 38
New Windsor Hotel Stock Offering,
April, 15 38
North America Pulp and Paper
Ti-ust, February, li 58
Oakoal Co. of Canada, Ltd., (Edi-
torial), April, 29 9
Oakoal Co. of Canada, Ltd., June,
24 3
Oil, Investing in, May, 20 28
Ontario Loan Companies 1920
Figures, March, 25 20
Pedlar People Bond Issue, March,
25 . 54
Preference Under Dominion Wind-
ing-up Act, May, 27 34
Pressed Metals Co. of Canada, June,
24 3
Prince's Ltd., Liabilities of, Janu-
ary, 21 6
Public Utilities, Financing of, April,
8 22
Pulp and Paper Financing, New-
March, 4 42
March 11 38
Purchasers, Sale of Goods to Joint,
March, 11 26
Railroad Earnings, Gross. (Sec
every issue).
Railroads Lost Money in 1919,
February, 25 ." 30
Railwavs and Operating Costs,
(Editorial), March, 18 10
Railway Problem Still Unsolved,
April, 29 8
PAGE
Railway Situation Considered in
Parliament, March, 25 7
Railways, The Difficulties of (Edi-
torial), March, 18 9
Railway Ti'affic, Co-ordination of,
April, 8 9
Realty Financing By Bond Issues
(Editorial), April, 29 10
Riordon Co., Ltd., May, 27 50
Riodon Company's Position Out-
lined, May, 13 12
Riordon Stock Adjustment, March,
18 50
Riordon Stock Takes Drastic Slump,
April 22 38
Rubber's Rise and Fall (Editorial),
April, 15 10
Sale of Goods co Joint Purchasers,
March, 11 26
Salj of Khares, Action to Stop, June,
24 9
Sale of Shares, Contract for, June,
17 2
Securities Market, Corporation.
(See every issue).
Shareholders, Action on Loan By
Company to, February, 11 ... . 42
Shareholders' Meeting, Power of
Manager to Call, April, 15 ... . 26
Shares, Action to Swp Sale of, June,
24 9
Shares, Contract for Sale of, June,
17 2
Shares, Double Payment of by
Mistake, March, 25 42
Shavrinigan Power Bonds Sold,
March 11 , 38
Smoot Service Corporation, Ltd.,
(Editorial), February 18 10
Spanish River Pulp and Paper Bond
Offering, February 11 54
Spanish River Pulp and Paper Co.,
March 18 50
Steel Corporation, New British
Empire, April 1 14
Stock. Dispute Over Subscription to,
January 21 46
Stock Exchanges, Montreal and
Toronto. (See every issue).
Stock Markets and Business (Edi-
torial), April 22 10
Stock Offerings Reach Good Total
in 1920, Public, January 14 ... . 38
Stock Sales and Prices. (See every
issue).
Stocks Depressed by Unfavorable
Statements, April 22 5
Tiger Tire and Rubber Corp., Feb-
ruary 25 54
Toronto Railway Companv, January
14 " 58
Trademark, Registration of General,
April 29 26
Trade Mark, Registration of. May
20 34
Unlisted Securities. (See every
issue).
Utilities, Financing of Public, April
8 22
Winding-up Act, Preferences Under
Dominion, May 27 34
Windsor Hotel Company, Januai-y
21 62
Winnipeg Electric Railway Com-
pany, Febi-uary 11 58
Winnipeg Electric Railway Earn-
ings, January 14 58
Winnipeg Electr'c Raihv-iv Still in
Rough Water, March 11 6
Winnipeg Electric Railway Stock
Sale, Januai-y 14 54
Woollings Company, T. S., May 27 36
January 1 to June oO, 1921
THE MONETARY TIMES
Index
PAGE
BANKING AND ECONOMICb
Aftermath, Banking Opportunities
and the, February 18 18
Alberta s lyiil Legislative Session,
June 24 5
Alberta Legislature in Session,
Maich25 31
American and Canadian Trust
(companies, xviay lo 20
American Interest in Canada, inay
Zl 18
Analysis of ±>usiness l-auures in
lyzu, March Zo 38
AsstSim-.nD and j^and Titles (Edi-
torial;, May 20 10
Assig^nment, iNotice of, January, 14 42
BanK Account and the Wills Act,
Joint, April 1 26
Bank Act, Amendments Proposed
(Editorial), June 24 .. .... .. 4
Bank Act, Section oa of the, April
15 22
Bank Branches, Four Hundred in a
Year, January 21 33
Bank Branches, Where They Are
Situated, January 21 33
Banking Capital, More Than Seven
Millions of New, January 14 ... . 5
Banking Capital, Premises Tie Up,
May 20 30
Bank Clearings. (See every issue).
Bank Credius, Distribution of
(Editorial), May 6 10
Bank Credits Must Be Short Term,
Why, May 27 22
Banking Opportunities and the
Aftermath, February 18 18
Banking Results in Scotland, (Edi-
torial), January 28 9
Bank Loans, Movement of, (Editor-
ial), February 25 10
Bank Manager, Broad Fields
Covered by, June 17 4
Bank, Operating a State (Editorial),
February 25 9
Bank Premises Holding Company
Suggested, May 20 28
Bankruptcy Act, Action Under,
February 25 42
Banki-uptcy Act in Operation, The,
January 14 26
Bankruptcy Act Still in Process,
February 4 8
Bank Services, Remuneration for,
March 18 22
Banks, Relations With Other, Feb-
ruary 11 32
Bank Statement, December, Febru-
ary 4 5
Bank Statement, January, March 4 5
Bank Statement, February, April 1 5
Bank Statement, March, May 6 . . 18
Bank's Stationery Department, A
(Editorial), April 8 10
Banks vs. Life Insurance, March 18 32
Banque d'Hochelaga Held Liable,
February 18 42
Bills of Exchange Act, Effect of
Section 167 of, January 28 ... . 34
Boards of Trade Review Year's
Work, February 4 18
Bonusing Industry, Municipalities
Suffer by (Editorial), May 6 .. 10
Britain, Investment Relations With
(Editorial), May 13 9
British ColumBia Legislative Ses-
sion, April \b 18
British Columbia Legislature Now
in Session, March 11 5
Building Activity at the Coast,
Some, May 6 7
Building Activity, Land Values and
(Editorial), April 15 10
Building, The Rewards and Costs of
(Editorial), January 28 10
PAGE
Business and Pergonal Connection
March 4 lo
Business and Stock Markets (Edi-
torial), AprU 22 10
Business, Dominion Companies'
Power to uo, April 8 5
Business Enterprise Deserves Fos-
tering, the bpirit, teoruary 11 36
Business P'ailures in 1920, Analysis
of, March Z5 38
Business Failures. (See every
issue).
Business Failures, A "Crop" of,
April 29 22
Business, How it Should Be Taxed?
(Editorial), April Z\i 10
Business Losses, borne Notable
(Editorial), May z7 lU
Canada, American Interest in, May
zt 18
Canada and South Africa (Editor-
ial), May 2u y
Canada and the Imperial Navy,
April 29 5
Canada and the Reparation Terms
(Editorial), li ebruary 4 9
Canada, International Ti'ade Situ-
ation in, May 27 7
Canadian Trust Companies, Amer-
ican and, May 13 20
Cancellation of Business, Too Much,
(Editorial), January 14 10
Capital and Immigration, Attracting
(Editorial), June 17 4
Capital, More than Seven Millions
of New Banking, January 14 . . 5
Census, What Will the 1921 Reveal?
April 29 18
Charitable Appeals, Duplicating
(Editorial), March 25 10
Coast, Building Activity at the. May
6 7
Copyright, Infringement of. May 6 26
Co-operative Marketing of Grain,
March 4 18
Creditor Against Estate, Action of,
March 18 38
Credits Must Be Short Term, Why
Bank, May 27 22
Credits, Short and Long Term
Rural, April 22 14
Crime, Finance and (Editorial),
March 18 lo
Currency Inflation, Our (Editorial),
February 25 9
Debtor, Conveyance of Property by,
April 8 26
Deflation in the United States
(Editorial), March 11 10
Deposit. Agent Fraudulently With-
drawing, May 20 34
Depositaries for Public Savings
(Editorial), February 4 9
Deposit Limitations of Loan and
Trust Companies, February 4 . . 14
Dollar, Our Good Canadian, (Edi-
torial), April 15 9
Dominion Control of Water-Powers,
May 27 14
Domin-on Moi-tgage and Investment
Association Meets, May 13 ... . 8
Dominion Mortgage and "investment
As-ociati n. May 20 5
Earning Capacity of the Average
Man, April 15 16
Economic Developments in Western
Canada. January 21 37
Electric Railway Association, Can-
adian, February 11 d32
Employee. Personal Connection
With (Editorial), March 4 .. .. 10
Enterprise Deserves Fostering, The
Spirit of, February 11 36
Estate. Action of Creditor Against,
March 18 38
_ PAGE
Estate, Administration of. May 13 z6
Exchange Act, Effect of Section 167
of Bills of, January 28 34
Exchange in Relation m the Secur-
ities Market (Editorial), January
21 9
Exchange Problem, An Aspect of
the, March 18 36
Exchange Quotations. (See every
issue).
Exchange Rates, Intrincacies of,
February 4 24
Exchange, Rise in, January 14 . . 38
Failures, A Crop of Business, April
29 22
Failures, Business. (See every
issue).
Failures in 1920, Analysis of,
March 25 38
Failures in Canada in 1920, Com-
mercial, January 14 24
Failures, Speculation and (Editor-
ial), January 28 10
Farmers' Movement is Economic,
Organized, February 18 34
Federal Charter Over-Rides Provin-
cial Laws, March 4 30
Finance and Crime (Editorial),
March 18 lo
Finances Must be Sound, Industries'
(Editorial), January 21 10
Financial Bills Before Parliament,
March 4 14
Financial Business Dull in the
Capital, April 29 14
Financial Relations with the United
States, January 14 18
Financing in Great Britain, Long-
Term (Edtiorial), January 21 . . 10
Fordney Tariff Measure, The (Edi-
torial), February 18 9
Forewarnings for 1921 (Editorial),
January 14 9
Foreign Exchange and the Security
Market. (Editorial), January 21 9
Foreign Trade Machinery is Deli-
cate, May 13 18
FraudulenHv Withdrawing Deposit,
Agent, May 20 34 ■
German Indemnity, The (Editorial),
March 4 9
Gold and Silver Production, April
22 36
Gold Movement from Canada (Edi-
torial) , January 14 9
Grain Broker to Recover Losses,
Right of, January 28 34
Grain, Co-operative Marketing of,
March 4 18
Great Britain, Long-Term Financ-
ing in (Editorial), January 21 .. 10
Great Britain Will Soon be in
World's Markets Again, April 29 28
Great West Bank of Canada, The
(Editorial), March 4 9
Home Bank Loses Cahan Case,
Februai-y 25 18
Housing Loan, Proposes Huge
Government, Febi-uary 25 ... . 36
Immigration and Industry (Editor-
ial), March 25 9
Immigration and Unemployment,
May 20 20
Immigration, Attracting Capital
and (Editorial), June 17 4
Immigration Increasing, March 4 . . 7
Immigi-ation Still Increases, March
18 24
Impei-ial Navy, Canada and the,
April 29 ?,
Income Tax, Intricacies of the,
April 15 36
Income Tax Payments, (Editorial),
May 6 9
Index
THE MONETARY TIMES
January 1 to June 30, 1921
PACE
Indemnity, The German (Editorial),
Marcli 4 9
Inoustnes' l-'mances Must be Sound
(Editorial), January ^1 . . . . . . 10
Industry, iiunugration and (Editor-
ial), March 25 9
Inrtavion, Our Currency (Editorial),
February 25 9
Insolvency, Voluntary Winding-up
Does i.ot Constitute, Februai-y IS 42
International Trade Situation in
Canada, May 27 7
Investing in Oil, May 20 28
Investments Association, Dominion
Mortgage, May 20 5
Issues for Coming Session, Broad
(Editorial), February 11 9
Joint Bank Account and the Wills
Act, April 1 26
Joint Ownership Plan, A (Editor-
ial), l<ebiuary 18 ,. . • • 10
Labor Organization and the
Kadicals vHiditoriai), May 13 . . 10
Labor Situation in Relation to
i-rices and ri-ofiis (i.ditorial),
January 21 9
Labor, What it Wants ? January 21 41
l^and Mortgage Companies of Ont-
ario, Marcn 25 40
Land Titles, Assessment and ^Edi;
torial), May 20 10
Land Values and Building Activity
(Editorial), April 15 10
Land Values Increased, Average,
March 25 32
Legislation, The Progress of Social
(Editorial), February 11 . . . . 9
Loan and Trust Assets to be Fully
Examined, January 14 7
Loan Companies 1920 Figures,
Ontario, March 25 20
Loan Companies, Consider Borrow-
ing Powers of, January 28 ... . 7
Loans, Movement of Bank (Editor-
ial) , February 25 10
Long-Tenn Financing in Great
Britain (Editorial), January 21 10
Manitoba Legislative Session,
March 11 18
Manitoba Legislative Session, May
27 -. • 8
Manitoba Legislature Now in
Session, February 11 6
Merchants Bank Makes Foreign
Connection, April 22 8
Money Conditions in the West,
Easier, February 25 7
Montreal and Quebec Savings Insti-
tutions, Febi-uary 4 24
Montreal and Quebec Savings Insti-
tutions, January Statement,
March 4 22
Montreal and Quebec Savings Insti-
tutions in February, April 1 . . . . 24
Montreal and Quebec Savings
Institutions, May 13 24
Montreal Banks are Swindled,
March 11 .• ■ 20
^Mortgage and Investment Associa-
tion, Dominion, May 13 ..... . 8
Mortgage and Investments Associa-
tion, Dominion, May 20 5
Mortgage 3nd trusts Association,
B. C, January 14 d32
National Debts, Something about
(Editorial), April 8 10
National Disappointment, A (Edi-
torial), February 4 10
Nfit-onal Problems Remain Unsolv-
ed, June 24 , 1
New Brunswick Legislative Session,
April 15 ^ 20
New Brunswick Legislative Session,
May Ci 24
PAGE
New Brunswick Will Practice
ji,conomy, April 22 18
Note lo iiank, Payment, of, April S 26
Nova Scotia Legislative Session,
April 15 41
Ontario's 1921 Legislation to be
Comprehensive, J; eOruary 25 . . 5
Ontai-ios Legislation in 192i Covers
Broad t leld. May 20 18
Organized Farmers' Movement is
Economic, February 18 34
Ownership Plan, Joint (Editorial),
a ebruary 18 ; 10
Parliamentary Session lor 1921,
(iLditonal), May Z( _ 10
Parliamentary beoSion, Kcsult of
uominion, june 24 1
Parliamentary Session to Close May
28, May 27 5
Parliament, Broad Issues for Domin-
ion (iiiditorial), t'eoruary 11 . . 9
Parliament, J^inancial rSiUs Beiore,
March 4 14
Parliament Opens With Political
Battle, February 18 7
Parliament Ready for Opening on
Monday, February 11 . . . . -. . . . 7
Parliament, 'ihe Outlook at Ottawa
(Editorial), February 18 9
Personal Connection in Business
(Editorial), March 4 ......... 10
Premises Tie up lianking Capital,
May 20 : 28
Prices Changing With Phenominal
Rapidity, January 28 18
Prince Edward Island Legislative
Session, April 15 24
Prince Edward Island Legislative
Session, May 13 14
Profits and rrices in Relation to
Labor (Editorial), January 21 . . 9
Progress of Trust Companies, March
25 . . • . . • • 40
Property by Debtor, Conveyance of,
April 8 26
Protective Tariff, A National Dis-
appointment (Editoi-ial), Febru-
ary 4 10
Provincial Laws, Federal Charter
Over-Rides, March 4 30
Quebec Legislative Session, Work of
the, February 25 26
Quebec Parliamentary Session,
Municipal Legislation Featured,
April 1 18
Radicals, Labor Organization and
tne (Editorial), May 13 10
Railway Problem, Shaughnessy
Proposal, April 29 8
Railway Traffic, Co-ordination of,
April 8 9
Relations With Other Banks,
Februai-y 11 32
Relations With the United States,
Financial, January 14 18
Remuneration for Bank Services,
March 18 22
Reparation Terms, Canada and the
(Editorial), February 4 9
Retailers Now Taking Losses (Edi-
torial), May 20 9
Rural Credits, Short and Long
Term, April 22 14
Sav-ng3, Depositaries for Public
(Editorial), February 4 9
S!>vine's P-'nks. Dominion Govern-
ment, February 11 32
Scotland, Banking Results in (Edi-
torial), January 28 9
Section 88 of the Bank Act, April 15 22
Securities Embargo Lifted, January
21 54, 8
Securities Market, Foreign Ex-
change in Relation to (Editorial),
January 21 9
PAC.Ji
Signature, The Legible (Editorial),
ii'ebruary 25 10
Sliver Price Fell Rapidly in 1920,
Feoruary 4 32
Silver Production, World s Gold and,
April 22 36
Social Legislation, The Progress of
(Editorial), February 11 . . . . 9
South Africa, Canada and (Editor-
ial), May 20 9
Speculation and Failures ^ Editor-
ial), January 2» 10
Stati,- Bank, operating a (Editor-
ial), Februai-y 25 9
Stationery Department, A Bank's
(Editorial), April s 10
Stock Markets and Business (Edi-
torial), April 22 10
Succession Duty, Assessment for,
May 27 34
Tariff Measure, The Fordney (Edi-
torial), l-eDruary 18 9
Taritt Policy, The Republican (Edi-
torial), March 25 10
Tariff, Protec<,ive, A National
Disappointment (.Editorial), Feb-
ruary 4 10
Taxation Now Being Tested, War-
time, March 25 5
Taxed, now Jbusiness Should Be ?
- (Editorial), April 29 10
Taxes on Corporations (Editorial),
June 24 4
Tax on Sales, Turnover Tax and an
E.xtended, May 6 5
Trade Mai'ks, Concurrent Use of,
February 4 42
Trusts Assets to be Fully Examined,
Loan and, January 14 7
Trust Companies, American and
Canadian, May 13 20
Trust Companies, Deposit Limit of
Loan and, December 4 14
Trust Companies, The Progress of,
March 25 ... 40
Trust Company Notes, April 29 . . 14
Trust Compa'ny Returns to be
Checked, Loan and, June 24 ... . 1
Trust Moneys in Deceased's Hands,
Priority of, June 24 6
Turnover Tax and an Extended Tax
on Sales, May 6 5
Turnover Tax, The Proposed,
(Editorial), April 1 9
Turrfover Tax Not Desirable (Edi-
torial), May 6 9
Unemployment, Immigration and,
May 20 20
Unemployment Situation in Canada,
March"ll 14
United States, Financial Relations
wth the, January 14 18
Voluntary Winding-up Does Not
Constitute Insolvency, February
18 42
Waterpowers, Dominion Control of,
May 27 14
Weather, A Gamble on the (Editor-
ial), April 22 10
West, Easier Money Conditions in
the, February 25 ,7
Western Canada, Economic Devel-
opments in, January 21 37
Wheat Pool, The, March 25 18
Wheat Touches Dollar Mark (Edi-
torial), April 29 10
Wholesale Prices, Index Number
of—
January 21 24
February 25 24
March 25 14
April 29 24
May 27 24
Juiie 24 10
Index
THE MONETARY TIMES
January 1 to June 30, 1921
PAGE
Wills Act, Joint Bank Account and
the, April 1 26
Withdrawing.- Deposit, Agent Fraud-
ulently, May 20 34
ANNUAL REPORTS
Banks
Bank of Hamilton, March 25 . . 8
Bank of Hamilton, April 1 . . . . 43
Bankof Hockolaga, January21, 14, 25
Bank of Montreal ( Semi- Annual ) ,
May 27 25, 52
Bank of Nova Scotia, January
28 27, 51
Bank of Toronto, Januai-y 14 . .14, 34
Banque Nationale, June 24 .. ..11, 12
Canadian Bank of Commerce,
January 14 . .27, d32
Dominion Bank, January 28 ..14, 28
Imperial Bank of Canada, May
27 16, 26
Lloyds Bank Limited. May 20 . . 49
Merchants Bank of Canada, June
17 8, 9
Montreal City and District Sav-
ing's Bank, February 25 . . ..14, 33
Roval Bank of Canada, January
21 12, 39
Standard Bank of Canada, Febru-
ary 18 8, 57
Sterling Bank of Canada, May
20 8, 51
Union Bank of Canada, January
21 8, 27
Weyburn Security Bank, April 1 41
Insurance
Acadia Fire Insurance Company,
May 13 30
Aetna Life Insurance Company,
March 11 12, c24
British America Assurance Com-
pany, March 25 16, 25
British Northwestern Fire Insur-
ance Co., March 4 26
Caledonian Insurance Company,
June 17 12
Canada Life Assurance Company,
January 14 8, e32
Canada National Fire Insurance
Company, February 18 .. ..28, 52
Canadian Fire Insurance Com-
panv, March 4 26
Canadian Suretv Company, March
4 ■ d26
Casualty Co. of Canada, March 18 56
Confederation Life Association,
January 28 27
Commercial Life Assurance Com-
pany, March 18 25, 48
Continental Life Insurance Com-
pany, February 11 57
Crowri Life Insurance Company,
Februarv 11 d32
Dominion Fire Insurance Co.,
March 18 12, 33
Dominion Life Assurance Com-
pany, February 11 25, 57
Employers' Liability Assurance
Report, June 17 1
Excelsior Life Assurance Co.,
February 4 37
Farmers' Mutual Insurance Com-
panies, March 4 28
Fire Insurance Company of Can-
ada, April 1 39
Glens Falls Insurance Company,
May 13 6
Great West Life Assurance Com-
pany, February 14 19, 36
Guarantee Company of Nortli
America. February 25 .. ._. .. 14
Imperial Guarantee and Accident
Company, Januar-y 21 33
Imperial Life Assurance Com-
pany, January 14 8
PAGE
La Sauve^arde Life Insurance
Company, April 29 20
Liverpool and London ana GloDe
Insurance Co., June 17 11
London Life Insurance Company,
February 18 30
London Life Assurance Company,
February 25 28
London Mutual Fire Insurance,
Company, February 25 .. ..29,32
Manitoba', Farmers' Mutual Hail
Insurance Co., February 11 ..12, 25
Manufacturers' Life Assurance
Company, February 4 .. . .12, 27
Milk River Mutual Fire Insurance
Company, February 25 36
Miniota Farmers' Mutual Fii-e
Insurance Co., April 29 26
Merchants Fire Insurance Com-
pany January 14 14, f32
Monarch Fire Insniance Co.,
March 4 26
Monarch Life Assurance Com-
pany, February 4 12, 33
Mount Royal Assurance Company,
Marcn 11 41
Mount Roval Assurance Company,
March 18 29
Mutual Life Assurance Co. of
Canada, Febniary 4 31, 52
Mutual Life Insurance Co. of New
York, February 4 36
National Life Assurance Com-
pany, J.inuary 21 35, 61
New York Life Insurance Com-
pany, February 25 30
North American Life Assurance
Company, January 28 . . . . 8, 25
Northwestern Life Assurance
Company, February 25 . . . . 8, 59
North W^est Fire Insurance Co.,
Ltd.. February 18 27, .52
Ornide"taI Fire Insurance Co.,
March 4 8, 28
Ontario Equitable life and Acci-
dent Insurance Co., Februarv
18 12, 59
Policy-Holders Mutual T.ife Insur-
ance Co.. February 25 30
Portage La Prairie Farmers'
Mutal Fire Insurance Co.. Feb-
ruary 4 . . 33
Port-^i-e La Prairie Farmers'
Mutual Fire Insurance Co.,
February 11 57
Provident Insurance Company,
Anril 1 41, 21
Prudential Insurance Company,
February 25 32
Saskatchewan Fprn-ers' Mutual
Fire Insurance Co., March 18.16, 51
Security Life Insurance Company,
Februarv 11 12. c32
Sovereipn Life Assurance Co. of
Canada, February 11 27,40
St. John's Mutual Life Associa-
tion, February 18 36
St. Paul Fire and Marine Insur--
ance Co., February 4 12, 27
Sun Life Assurance Company.
February 11 d32, .59
Travellers Companies of Hartford,
April 8 36
Treatv Reinsurances, Ltd., March
18 '. 40
Union Fire and Casualty Com-
pany, Febniai-y 25 12,27
Wawanesa Mutual Insurance
Company, February 25 .. ..16, 27
Western Assurance Company,
March 25 27, 16
Western Empire Life Assurance
Co., February 4 37,52
Western Life Assurance Com-
pany, February 18 32, 59
PAGB
Trust and Loan
British Columbia Permanent Loan
Co., February 18 32
British Columbia Permanent Loan
Co., February 25 39
Canada Permanent Mortgage
Corporation, February 4 ..28,37
Canadian Guaranty Trust Com-
pany, February 11 8, a32
Canadian Mortgace Investment
Company, February 11 40
Canadian Northwest Land Com-
pany, Ltd., April 1 42
Capital Trust Company, February
11 40
Central Canada Loan and Savings
Company, January 28 14
Chartered Trust and Executor
Co., March 4 d26
Colonial Investment and Loan Co..
February 25 24
Crown Trust Company, February
25 16
Eastern Canada Savings and
Loan Company, February 18 . . 33
Eastern Trust Company, March
11 32
Equitable Trust Company, of
Winnipeg, February 25 .. .24, 35
Guaranty 'Trust Company of New
York, January 14 40
HanJlton Provident and Loan
Corporation, February 18 ... . 24
Hamilton Provident and Loan
Corporation. March 4 ..... . 25
Home Investment and Savings
Association. February 11 . . 8, 28
Huron and Erie Mortgage Cor-
poration. February 11 . . . . 8, 29
Imnerial Trusts Company "f
Canada. February 25 24
International Loan Company,
April 22 22
Lambtnn Loan and Investment
Co. Fph'-uary25 57
Landed Banking and Loan Com-
pany, January 28 14
London and Canadian Loan
Agency Comuany. February 11 8
London and Canadian Loan and
Agency Co. Ltd., Februai-y 18 37
London and Wester" Trusts Com-
. uanv, 'P'e'^ruarv 18 3^"
Lond-n Loan and Savings Co..
February' 25 5"
Mercantil'* Trust Company, Feb-
ruarv 18 32
Mercantile T>-ust Company of
Canada. Februarv 25 25
Midland Loan and Savingrs Com-
pany. January 21 65
Montreal Loan and Mortga2:e Co.,
Februarv 25 57
Montreal Trust Company, Janu-
ary 28 24
Mortgage Corporation of Nova
Scotia, Februai-y 25 57
National Trust Company, Januaiy
28 • ■ 27
National Trust Company, Ltd.,
Februarv 4 58, 59, 60
Northern Mortgage Co. of Cana-
da, March 4 • • 28
Northern Trusts Company, Feb-
ruary 11 40
North of Scotland Canadian
Mortgao-p Co. Ltd., Februarj'25 34
Nova "Scotia Trust Company,
April 22 8
Ontario Loan .and Debenture Co..
February 11 h32, 57
Peoples' Loan and Saving Com-
pany, Februarv 18 32
Premier Tnist Company, Febiit-
ary 18 32
January 1 to June 30, 1921
THE MONETARY TIMES
Index
PACK
Prudential Trust Company, March
25 6
Real Estate Loan Company of
Canada, Ltd., February 18 ..27, 52
Royal Loan and Savings Company,
February 11 d32
Saskatchewan Mortgage and
Trust Co., February 25 ... . 28
Security Loan and Savings Com-
pany, February 25 34
Security Loan and Savings Com-
pany, March 18 14
Standard Trusts Company, Janu-
ary 28 8, 2o
Sterling Trusts Corporation,
March 4 d23
Toronto General Tntsts Corpor-
ation, January 21 61
Toronto General Trusts Corpo:-
ation, February 1 34
Toronto Mortj^age Company,
January" 21 38
Toronto Mortg-age Company, Jan-
uary 21 38
Toronto Mortgage Co'-ipany, Feb-
ruary 1 1 . . .^ 37
Toronto Savines and Loan Com-
pany, March IS 14
Trust and Loan Company of
Canada, June 17 12
Trustee Company of Winnipeg,
April 22 . . . ! 7
Trust'; and Guarantee Company.
February 11 8, 33
Union Trust Company, February
18 * 12, 25
Waterloo County Loan and Sav-
ings Company, Febnjary 25.. 8, 37
Western Canada Investment
Companv, Ltd.. February 11 . . 40
Western Homes, Ltd., January 21 61
Industrial
Abitibi Power and Paper Co.,
April 1 44
American Salesbook Co., February
25 58
American Salesbook Co., March 4 47
Ames-Holden-McCready, Ltd.,
April 1 44
Ames-Holden Tire and Felt Cos.,
April 8 42
Belding, Paul Corticelli, Ltd.,
February 4 57
Brandram-HendersOn, Ltd., April
29 24, 42
British Columbia Fishing and
Packing' Co., March 4 45
Brompton Pulp and Paper Com-
pany, Jannai-y 28 50
Burt Company. F. N. February 4 57
Burt Co., Ltd.,F. N.—
February 18 . 35
February 25 58
Canada Cement Company, Febru-
ary 18 58, 33
Canadian Consolidated Felt, Co.,
May 6 42
Canadian Consolidated Rubber
Co.. Ltd.. April 29 38
Canadian Cotton?, Ltd., May 13 42
Canadian Fairbanks-Morse Co.,
Ltd., April 29 38
Canadian General Electric Co.,
Ltd., March 25 34, 59
Can.adian Westinghonse, Ltd.,
April 1 42
City Dairy Co., Ltd., March 11 - . 42
Dominion Bridge Co., Ltd.,
January 14 58
Dominion Canners, Ltd.. March 11 42
Dominion Engineering Works,
Ltd.. March 25 59
Dominion Linens, Ltd., .A.pril 1 . . 42
Goodwin-^, Ltd., .\pril 8 42
PAGE
Goodyear Tire and Rubber Com-
pany of Canada, February 11 58
Holt i<entrew Co., Ltd., April 1 42
Howara Smith Paper Mills, Ltd.,
February 25 40
King Edward Hotel Co., Ltd.,
March 4 43, 45
Mattagami Pulp and Paper Co.,
Ltd., May 20 50
Monarch knitting Co., Ltd., April
29 38
Montreal Cottons, Ltd., March 4 45
National Breweries Co., Ltd.,
March 25 : . . . . 58
Nova bcotia Steel and Coal Co.,
Ltd., March 13 43
Nova Scotia Steel and Coal Com-
pany, March 18 34
Penman's Ltd., March 11 42
Port Hope Sanitary Manufactur-
ing Company, March 25 ... . 58
Price Bros, and Company, Ltd.,
May 20 50
Provincial Paper Mills, Ltd.,
February 18 40
Provincial Paper Mills, Ltd.,
February 25 31
Quaker Oats Company, March 25 58
Riordon Co., Ltd., April 1 . . . . 42
Rogers Co., Ltd., Wm. A., Febru-
ary 11 58
Rogers, Ltd., Wra. A., February
18 33
Saguenay Pulp and Power Co.,
March 18 56
Sawyer-Massey Co., Ltd., March
18 54
Shredded Wheat Company, Feb-
ruary 25 40
Simpson Co., Ltd., Robt., March
18 54
Steel Companv of Canada, Ltd.,
April 8 44
St. Maurice Paper Co., Ltd., April
8 44
Tuckett Tobacco Companv, Ltd.,
May 27 ." 50
We.stern Grocers, Ltd., April 8 . . 42
Winn'peg- Paint and Glass Co.,
June 24 3
Woods Manufacturing Co., Ltd.,
February 18 40
Utilities
Barcelona Traction, Light and
Power Co., January 14 58
Barcelona Traction, Light and
Power Co.. January 21 63
Bell Telephone Company of
Canada March 4 ". ..27, 47
British Columbia Electric Rail-
way, February 11 34, 58
Canada Steamshin Lines, Ltd.,
May 13 42
Canadian Pacific Railvray Com-
panv, February 4 57
Canadian Pacific Railway Co.,
March 25 ." . . . . 58
Canadian Pacific Railway Com.-
pany, Mnv 6 .' 42
Demerara Electric Co., Ltd., Anril
15 42
Detroit United Railv;ay. Ar>ril 15 42
Dominion Power and Trans-
mission Co.. February 25 . . . 40
Laurentide Power Co., Ltd., Feb-
ruary 18 ''O
Mackay Companies, Februarv 18 58
Maritime Telea-raph and Tele-
phone Co . F°>iruary IS ... . 58
Mexican Liaht, Power and Tram-
wav C'O. June 24 3
Minneapolis, St Paul and Sault
Ste. Marie Railwav, June 24 . . 3
Montreal Light, Heat and Power
Company, January 28 50
PAGE
Montreal Telegraph Company,
January 21 62
New Brunswick Telephone Co.,
February 25 40
Niagara Falls Power Co., March
25 59
Northern Ontario Light and
Po.ver Company, March 25 . . 58
Nova Scotia Tramway ,-ind t^ower
Co., May 6 42
Ottawa Light, Heat and Power
Co., Ltd., March 11 41
Porto Kico Railways Co., i^id.,
March 18 54
Public Service Corporation oi
Quebec, February 18 40
Shawinig-an Water and Power
Company, February 25 40
Temiskaming and Northern Ont-
ario Railway, January Zi. . . . . 61
Trinidad Electric Co., Ltd.,
April 15 42
West India Eleocric Co., Ltd.,
March 25 59
Winnipeg Electric Railway Co.,
Februai-y 18 40
Winnipeg Electric Railway Com-
pany, February 25 22
Mining
Asbestos Corporation of Canada,
March ,4 4.5
Black Lake Asbestos and Chrome
Co., Ltd., March 4 46
Canadian Salt Co., March 18 . . 54
Consolidated Mining and Smeltijig
Company of Canada, Ltd.,
April 15 4.3
Crow's Nest Pass Coal Co., June
24 3
Dome Mines Co., Ltd., May 27 . . 50
Granby Consolidated Mining and
Smelting Co., May 20 50
Hillcrest Collieries, Ltd., March
11 42
Holhnger Consolidated Gold
Mines, Ltd., February 25 ... . 58
Intercolonial Coal Mining Co.,
Ltd., March 11 42
Nipissing Mines Co., Ltd., April 29 38
" GOVERNMENT AND MUNICIPAL
FINANCE
Advances to Great Britain by
Canada, April 22 7
Albeita Budget and Surplus, March
^•5 36
Alberta Municipal Assessments too
High, April 22 20
-A.lberta Sells Securities, January 21 56
Alberta's Municipal Hospital Sys-
tem, April 1 24
Athabasca and its Financial Diifi-
culties, March 25 48
.\thabasca in Financial Troubles,
March IS 44
Bond Dealers' Association Conven-
tion, June 17 . 1
Bond House, Operation of a (Edi-
torial ) , February 18 13
Bond Market for 1921, Review of
the, January 21 36
Bond Market. Government and
Municipal (See every issue).
Bond Sales, January, February 11 24
Pond Sales, February, March 11 . . 22
Bond Sal°F, March, April 8 14
Bond Sales, April, May 13 22
Bend Sales, May, June 24 7
Borrowing in the United States,
Canadian, January 21 54
Borrowing Power of a Municipality,
How it is Arrived at. April 8 . . 32
Brantford 1920 Finances, May 27 .. 38
Index
THE I\IONETARY TIMES
January 1 to June 30. 1921
PAGE
Britain, Iiivestnient Relation* with,
(Editorial), May 13 9
British Columbia liond Sale, March
25 . . . . 52
Briiish Columbia Bond Sale, April
29 36
British Columbia budg-et, April 1 .. Zld
British Columbia Reports Revenue
Surplus, March 18 3-
British Columbia Sells Bond Issue,
June 17 r • ■ 6
Budget, A Discreet (Editonal),
May 13 • • 9
Budget! for 1921-22, Dominions,
May 13 • ^
Budg-ets, Careless Handling of
Municipal, June 17 11
Bumaby s Financial Position In.-
proves, May 6 32
Bumaby's Fihancial Statement,
April 29 42
Calgary and Tax Sale Property,
January 21 52
Calgary Collections and Arrears,
February 4 48
Calp-aiT Collections Improved, April
8 32
Calgary Tax Collections, January
21 52
Calgary Can Save Money by Depos-
iting with Province, January 28 40
Calgary Will Pay Sterling Deben-
tures, January 28 42
Cal"-ary S'.nking Fund Behind in
Paym.mts, April 22 32
Canora Pays Interest Arrears,
February 11 48
Cities, Financial Condition of Lead-
ing Canadian, February 25 ... . 18
Crown Lards, The future of, AnrU
29 20
Debenture Indebtedness and Relig-
ion, March 25 42
Debts, Something About National
(Editorir.1), April 8 10
Defaulting Municipalities, (Letter
to Editor), March 18 S
Defaulting Municipalities, Aid to
April 15 32
Defaults have been Common, Inter-
national (Editorial), April 22 . . 10
Dffaults, The Crop of Municiwal
(Editorial), March 11 '. . 9
Deposit Limit of Loan and Trust
Companies, February 4 14
Dominion Estimates are Tabled in
CJommons, March 11 7
Dominion Finances in December,
January 21 24
Dominion Finances in January,
February 18 22
Dominion Finances in February,
March 18 24
Dc minion Finance in March, April
15 24
Drmmion Government May BoriV-w
in New York, May 13 34
Dorunion Mortga<rc and Investment
Assoehiation, May 13 8
Dominion Morte'apre and Invest-
ments Association, May 20 ... . 5
Dominion Revenue, Source of, Feb-
ruary 25 32
Dominion's Budge*: for 1921-22,
May 13 5
Edmonton Apsessment, March 4 . . 36
Edmonton Bond Deal Arran-jed,
Marcch 4 40
Er'"'""toTi Bond Deal Concluded,
M-'vch IS 46
Edmonton Bond Tie-up Embarrass-
ing. January 21 56
Edmonton's Bond Tie-up. February
18 50
Edmonton Negotiates for Sale of
Bonds, May 20 44
PAGE
Edmonton Seeking to Tax Rents,
J^'eoruary 11 48
Edmonton's iiudget f.nd Tax Rate,
May 13 32
Eamonton's Financial Position
Strengthened, May 27 8
Edmonioii s lyzO 1 inances. May 20 40
Et'monCon's L(<ss on Bond Deal,
March 25 48
Estimates ire Tabled in Parliament,
March 11 7
Fernie, B.C., has Good Report, April
29 34
i inancial Condition of Ler.ding
Canadian Cities, February 25 . . 18
Pinancing in the West Proved
Disappointment, Local, February
4 22
Government and Municipal Bond
Market. (See every issue)
Government Housing Lotn, Pre poses
Huge, February 25 ... . 36
Great Bi-itain, Advances co, by
Canada, April 22 7
Great Britain's Financial Outlook
(Editorial), May 27 9
HaUeybury Defaults on Bond
Interest, February 11 48
Halifax Assessment Exemptions,
March 11 32
Housin;- Loan Proposes Huge Gov-
ernment, February 25 36
Imperial Navy, Should Canada
Share in the Cost, April 29 ... . 5
Income Tax Effects in Ontario,
March 25 48
Income Tax, Intricacies of the, April
15 36
Income Tax, Life Insurance and the
(Editorial), May 20 10
Income Tax Payments (Editorial),
May 6 3
Interest in New York Funds,
Collecting, April 22 26
Interest Rates on the Downward
Trend, Bond, February 11.... 50
International Dffaults have been
Common (Editorial), April 22 .. 10
Investment Houses Expect Improv-
ed Buying, May € 12
Investments Association, Dominion
Mortgage, May 20 5
Irrigation Bonds, February 25 ... . 50
Irrigation Bonds not Sold, January
14 50
Lethbridgf Northern Irrigation-
Bond Issve, May 27 44
Lethbridgc Northern Irrigation
Bonds, February ?5 50
Lethbridgc Northern Irriga'fon
Bonds, April 1 34
Loan anf' Trust Companies, Deposit
Limit of, February 4 14
T.oici Roiid Selling, February 4 . . 50
Local Fin Jincing Proved Disappoint-
ment, February 4 22
Manitoba Bonds Sold in New York,
March 11 36
Manitoba Budjret, March 25 8
Manitoba may Tax Incorporated
Companies, March 18 8
Manitoba Sells Securities, January
14 52
Mpn'to'ia Sells Two Bond Issues,
May 27 . . . . . . . . 44
Manitoba's Si'.i-plus, May IS 14
Manitoba Telephones Deficit, Janu-
ary 28 S
Mellville Bondholders Impose Severe
Term?. Anril29 ... 32
Merchants Marino Res^ilts in 1920,
April 1 .-.• TT . . . . . • S
Montreal and tli-? .Annexation Prob-
lem, February 4 48
Montreal Finances in 1920, June 24 10
PAGE
Mintrcal "Mi-tropolitan" Commis-
sion Controversy, January 21 . 52
Mcntreal "Metropolitan" Comm's-
sion. Powers of, Januai-y 14 . . . 48
Montreal Metropolitan i,ommission,
April 8 32
Moose Jaw Assessment, i'eoruary
18 48
Moose Jaw's Borrowing Power,
April 8 32
.Morrii Bros. Failure (Editorial),
February 18 10
.Mortgage and Investment Associa-
tion Meets, Dominion, May 13 . . S
Mortgage and Investments Associa-
tion, Dominion, May 20 5
Mortgage on Laml Exdng-uished by
Tax Sale, April 29 26
Municipal Accounting and Munici-
pal Finance, March 18 18
Municinal Assessments, Alberta too
High, April 22 20
Municipal A?sociation, Sasl-.atche-
wan Rural, March 25 14
Municipal Bond Market, Govern-
ment and. (See every issue).
Municipal Budgets, Careless Hand-
ling of, June 17 11
Municipal l>erauhs. Crop of, (Edi-
torial), March 11 9
Municipal Defaults in Saskatche-
wan, April 1 . . . 32
Municipal Defaults, Proce lure with,
June 17 5
Municipal Exemptions Prove
Burdensome, June 24 5
Municipal Finance. (See every
issue) .
Municipal Hospital System in
Alberta, April 1 24
Municipalities, Aid to Defaulting,
April 15 32
Municipalities, Defaulting (Letter
to Editor), March 18 »
Municipalities' Difficulties (Editor-
ial), June 24 4
Municipalities, Financial Conditio i
of Canadian, Febiniary 25 . . . IS
Municipalities Suffer by Bonusing
Industry (Editorial). May 6 .. IC
Municipalities, Will Hold no Respon-
sibilit" for Saskatchewan, Janu-
ary 23 , 40
Municipal Legislation Featured
Quebec Session, April 1 18
Municipal Railways and Provincial
Con<ti-ol (Eiitoi-ial), April 29 .. 9
National Debts, Something About
(Editorial) , April 8 10
National Revenue and Expenditure,
Aprils 3
New Brnnsvrck Funds Railway
r>pbK May 6 24
New Brunswick has Current Deficit,
Februarv 4 40
Newfoundland's Expenditures are
to be Re<luced, June 24 7
Newfoundland Makes Loan in U. S.,
May 20 42
Nevs^ouiv-Jl^nd's Temporary Borr-
cvring^ Hea^/y, May 20 52
New Yoik Frnf's, Collecting Inter-
est in, April 22 .......... - 2>5
Ncra Scotia RpveTiv.e and Expendi-
ture. April 22 42
Nova Sco+ia's Budget and Finances,
May 13 3ii
Nova Suot'i Sells Bonds. .-^ pril 1 . ^(^
Oak B'jv Finances in 1920. Febru-
ary 11 .- 48
O'k Bav Tninroves Financial Posi-
tion. Arril 1 32
Ontario Budset fcr 1921, February
18 3^
Ontario Hydro Bonds, June 24 . . t>
January 1 to June 30, 1921
THE MONETARY TIMES
Index
PAGE
Ontario Losinjr Succession Dues,
March IS . . ', IG
Ontario Sells Bonds, January '2S . . 42
Ontuiio Tre;\surer Estimates Sur-
plus, February 18 30
Ontario Treasury Bills, Another
Issue of, April 8 3tJ
Ontario Treasury Bills Sold, April
1 2&
Ottawa Business and Income Assess-
ment, February 4 48
Ottawa CalHns: Shortly for Loan,
June 24 ... P
Ottawa Municipal Hydro Electric
Results, March 4 36
Paris Bonds Oflered Here, January
21 ". 54
Paris Loan Here, Another, Januarv
14 ■. 62
Penticton, B. C, Finances Improve,
February 4 48
PeterbOiOUg'h Debt Increased Large-
ly, May 6 32
Point Grey Finances, March 11 . . 32
Prince Edward Island Budget,
April 22 22
Problems ot Municipalities, Finan-
cial, June 24 1
Quebec Province, Nearly a Surplus
for, February 4 38
Quebec Revenue and Expenditure,
April 22 43
Quebec Roman Catholic School
Debentrues, March 25 ....... . 52
Red Deer Annual Report, March 4 36
Regina Finances in 1920, April 8 . . 32
Regdna-Moose Jaw Water District,
May 20 40
Religion, Debenture Indebtedness
and, March 25 42
Rent Taxation, Edmonton Seeking,
February 11 48
Revenue ard Expenditure, National,
Aprils 9
Revenue, Source of Dominion, Feb-
niary 2o 32
HACiK
Roumanian Cedit, April 1 8
Rural Muncipal Association, Saska-
tchewan, March 25 14
Saskatchewan iionds Sold, January
28 .. 44
Saskatchev/an Comparative Tax
Rates, April 29 32
Saskatcnevifan Legislation Moderate
in Character, January 21 5
Saskatchewan Local Government
Board, June 17 9
Sasaktchewan Municipalities, Finan-
cial Problems of, June 24 ... . 1
Saskatchewan Municipal Defaults,
April 1 32
Saskatchewan Municipalities, prov-
ince will Hold no Responsibility
for, January 28 40
jsEskatchewan Rural Municipal
Association, March 25 14
Saskatoon Assessment, January 28 40
Saskatoon's Position, May 13 ... . 41
fcherbrooke Hopes to Profit on
Exchange, February 18 48
Single Tax has Many Deficiencies,
June 17 2
South Vancouver Recovering, April
1 33
St. Lambert 'n Difficulties, Febru-
ary IS , 48
St. John Debt Increased, April 8 . . 32
Swift Current In Financial Difficul-
ties, February 25 48
Taber Irrigation District has no
Tax Delinquents, February 25 . . 48
Taxation Now bein^ Tested, War-
time, March 25 5
Taxes on Corporations (Editorial),
June 24 4
Tax Exemptions Prove Burdensome.
Municipal, June 24 5
Tax on Sales, Turnover Tax and
Extended, May 6 5
Tax Rates of Canadian Municinali-
ties, May 27 '. . . 40
r,- i'AGjj
Tax Rates, Saskatchewan Compaia-
tive, April 29 32
Tax Rates,, Weoiein Cities have
High, ,4.pril 22 e
Tax aaic, mortgage on Land Extin-
guished by, April 29 26
Toronto Assessment, oainarj' 14 . . no
Toronto Assessment, February 18 48
Toronto Exemption i:!y-la>v Delayed,
January 28 40
Transcona Requii-es Administrator,
March 18 44.
Turnover Tax and an Extendeu T<ix
on. Sales, May 6 ,.,,._,... . 5
Turnover Tax not Desirable (Edi-
torial), May 6 y
Turnover Tax, The Proposed (Edi-
torial), AprU 1 9
United States, Borrowing in the,
will be Heavy, January 21 ... . 56
United States, Dominion Govern-
ment ;nay Borrow Tl ere. May 13 34
Utilities, i mancihg ot Public, April
8 22
Vancouver Assessment, February 4 48
Vancouver Faced with Deficit,
March 4 S6
Vancouver Finances, April 22 ... . 32
Victoria's Financial Position, May
^.13 .. 32
Vrctory Lean Committee's Work,
AprO 8 7
War Loan Committee's Work, Aniil
8 '.. 7
War-timo Taxation now being
Tested, March 25 5
Western Cities have High Tax
Rates, April 22 6
Winnipeg Bond Issue, Fcbvuary 4 52
Winnipeg Hydro Bonds Taken Up,
January 28 42
Winnipeg Refinancing in Next Six
Years, January 14 4''
Winnipeg- Sinking Fund Report,
February 23 48
Wiiin'peg Tax Rates and Esti-
mates, Marc^ 18 44
The Monetary Times
Printing Company
of Canada, Limited
The Canadian F.nsincer"
Trade Review and Insurance Chronicle
of Canada
Established ISl?')
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
AsBistant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
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The Year 1920 — Retrospect and Prospect
Turning Point in Price Movement Was Feature of Year— Bond Prices
Reached Low Level, While Stocks Rose and Fell— Bank Loans Increase,
While Deposits Fail to Respond —Insurance Business Continues to Grow
WHEN the armistice was signed Canada stopped and con-
sidexed. This was but a temporary break in the period
of expansion which had commenced in 1916, and the year 1919
found business breaking all war-time records. A real turn in
the tide of progress took place in the year just closed. Prices
are unmistakably coming down, business is contracting, labor
is more plentiful and more efficient, and speculation is on the
decrease. The year 1920 marks a turning point in Canada's
history.
It is remarkable how easily the transition, so far as it
has gone, has been brought about. There have been many
bears in the business world, and these have offset the influence
of business leaders who expected a prolonged period of high
prices and prosperity. Canada has been one of the first to
feel the effects of the downward movement, because she is a
great producer of the raw materials which have been among
the first commodities to suffer price reductions.
Throughout the whole of the year individual buying has
been maintained fairly well. Even the heavy luxui*y taxes
imposed by the Dominion government last June have failed to
materially affect the volume of business as a whole. In fact,
it is probable that a movement towards lower prices, coupled
with a maintenance of the pi-esent wage scales, will place wage
earners in a position to buy more than at any time during the
past few years.
Nevertheless the summer and autumn brought a rapid
contraction in business. This had been anticipated and in
part brought about by the banks earlier in their year, when
they set about bringing the period of credit expansion to a
close. As a guide to business policy this attitude on the
part of the banks was more effective than the mere reduction
in loans which was achieved; in fact, October was the first
month in which current loans showed a reduction, although
earlier reductions in call loans indicated that speculation
was the first field to which the screws were applied.
Primary Production
Primary production has again come to the assistance of
this country. The war-time record of manufacturing industry
was remarkable, but it at the same time is being more and
more felt that the future of this country rests in producing raw
materials and carrying them to shipping points, working them
in some cases through the earlier process of manufacture.
Natural resources are yearly becoming scarcer, and continu-
ally enhanced prices are assured for products of this class.
The acreages sown to grain crops were less this year than
last, but higher yields brought the production to a larger total.
The number of acres sown to wheat was 17,186,300, compared
with 19,295,968 in 1919; 15,555,400 acres were sown to oats,
compared with 14,952,114 in 1919. Acreages sown to other
grains were as follows: Barley, 2,588,000, a decrease of 2 per
cent.; rye, 729,500, a decrease of 3 per cent.; peas, 2,588,000, a
decrease of 3 per cent.; mixed grains, 909,350, an increase of
1 per cent.; hay and clover, 10,409,150, a decrease of 2 per
cent.; alfalfa, 229,300, an increase of 1 per cent,; potatoes,
819,000, about the same as in 1919.
The Northwest Grain Dealers' Association have estimated
the production for the three prairie provinces as follows: —
Wheat, 14,026,000 acres at 15.2 bu., 213,245,000 bu.; oats, 10,-
973,500 acres at 32.8 bu., 359,000,000 bu.; barley, 2,108,000
acres at 23.5 bu., 49,538,000 bu.; rye, 237,500 acres at 16 bu.,
4,400,000 bu.; flax, 1,181,000 acres at 7.1 bu., 8,385,000 bu.
Lumbering was rather less active in 1920, as the prices
were lower. The fisheries on both coasts experienced a good
year. The mines were also working practically to capacity
and had less difficulty as regards labor supply.
Transportation
The railways passed one of their greatest ciises in 1920.
Following a further wage award substantial increases in rates
were granted, though not without strong objections from agri-
cultural and commercial interests. The situation is compli-
cated in Canada by reason of the difference in the financial
condition of the two great railways. The Canadian Pacific is
strong, and no doubt could have continued to render a fair ser-
vice at the old rates. The Canadian National, on the other
hand, is not yet in an independent position, and it is not antici-
pated that much will be left by way of return to the Dominion
government on the investment after operation expenses and
depreciation are met. The soundest argument presented
THE MONETARY TIMES
Volume 66
against the rate increase was to the effect that an effort should
be made to make the Canadian National pay only after its
capitalization had been written down to a niore moderate
level.
In the field of shipping the supply of space this year over-
took the demand. There is a tendency towards keener compe-
tition and lower rates, for the buildinR- of new ghips has now
more than overtaken the ravages of the war. The Dominion
government continued its construction programme and re-
ported good financial results for 1919. Shis recently con-
structed have been at an excessive cost, however, and ship-
ping authorities feel that many of them will not pay in future
Higher Rates for Public Utilities
The outlook for public utilities has greatly improved; the
necessity for rates commensurate with the new level of opera-
tion costs is becoming impressed on the public. Many of the
street railways in Canadian cities secured increases this year.
The Bell Telephone Company made a successful application
for higher rates. Gas and electric light and power companies
all have felt the pressure of high costs, but the year 1920
found their position .as a whole improved.
At the same time there is a growing feeling in favor of
public ownership. The feeling of hostility towards all large
corporations, engendered as a result of the high prices and
lai'ge profits of the war period, will no doubt outlive any
justification which did exist for such feeling. The acquisition
and amalgamation of the Canadian Northern, Grand Trunk
and Grand Trunk Pacific Railways by the Dominion govern-
ment, the proposal for Ontario to purchase the hydro radials
of the Dominion government and the power assets of the
Mackenzie interests are recent examples of the movement
in the government field, while practically every municipality
which do'es not now ovim its street railway is planning to do
so, and some are venturing into the operation of other
services.
Manufactures
The manufacturing industries of Canada have kept up
their record, but during the past year they have felt more
and more keenly the vigorous free-trade movement set up by
the organized farmers in Canada. Efforts made to combat
this movement have, to a large degree, been successful; they
have at least transformed the free trade into a tariff reduc-
tion movement, and have brought home to the city populations
the fact that their prosperity is dependent upon the mainte-
nance of a tariff wall. A commission to investigate the tar-
iff was appointed by the Dominion government, and in Sep-
tember and October evidence was received at the more import-
ant cities throughout Canada. The findings of this commis-
sion have not as yet been announced, but it is an accepted
view that a commission composed of three members of a pro-
tectionist government will scarcely advocate any appreciable
reduction.
Tendency of Banks to Contract
Developments in the sphere of banking were of a mixed
character. The movement of expansion exte.ided through the
early months, but the banks made a concerted effort to bring
about a contraction of credit. This action was taken in antici-
pation of price reductions, and was beneficial to merchants,
who were still inclined to maintain hea%'^' stocks of goods on
hand. Reductions in credits first took place in the call money
market, the maximum loaned at call in Canada having been
reached in January, when the figure was .'6132,015,334. By
the end of June it had been reduced to $115,360,894. Current
loans continued steadily upwards, however, the total in Can-
ada at the end of July being $1,377,276,853, compared with
.■^1,226,962,963 at the end of January, 1920, and with $1,014,-
■ '87,206 at the end of July, 1919. Savings deposits showed a
teady increase, though not as rapid as in 1919, while the level
cf demand deposits was higher than in 1919.
Good Year for Insurance
Unquestionably 1920 was one of the best years in the his-
tory of insurance in Canada. Life business continued to ex-
perience the expansion which showed such phenomenal results
for 1919, but it is not expected that the increase in business
written in 1920 will be so great. There was no epidemic such
as took place in 1918, and reappeared in lesser degree in 1919,
to threaten the companies' surplus. The rise in property
values brought about a substantial increase in the volume of
fire insurance in force, and fire losses were about the same as
in 1-919, which was regarded as a fair year. There was
growth in all branches of casualty insurance, further particu-
lars of the experiences in which will be found in the series of
reviews in the insurance section of this number.
Loan and Trust Business
There was no new development in the loan and trust field.
The experience of the former as regards repayments of mort-
gage loans was good, as the general good crops in the west
enabled the farmers in many cases to bring their payments
up to date. There were sections, of course, in which crops
were not so good this year, and further extensions had to be
made. Funds for new borrowings were not plentiful, as the
companies on the one hand were more careful in anticipation
of lower prices for farm produce, and on the other hand were
tempted to invest still more of their funds in bonds, which
were obtainable at exceptionally low prices.
The trust companies again experienced an increased de-
mand for their services. Corporate administration of estates
is continually becoming more popular in Canada because of
the undoubted advantages which it offers. One notable fea-
ture of the year was the greatly increased demand for safety
deposit boxes, due to the more widespread holding of securi-
ties.
The Bond Market
The investment field witnessed some rather unexpected
developments. Government and municipal bonds and other
first-class securities sank to still lower levels. In spite of
this, new issues were numerous and the low prices secured im-
pose heavy capital charges on the provinces and municipali-
ties. There was no Dominion government loan for the first
year since 1915, but this important factor did not appear to
strengthen the market to any appreciable extent.
The control of the Victory bond market resumed in
January by the Dominion government, and the embargo on
the impoi't of securities which accompanied it, were two im-
portant factors in the investment field. Neither was suc-
cessful in attaining the desired object, which was to prevent
the decline in war bond prices and in security prices as a
whole. The market showed a little strength towards the
end of November, however, and control was removed.
The Stock Market
Corporation bonds moved downward in sympathy with
the security market in general. The greatest collapse took
place in the stock market, however, which reflects in greater-
degree the trend of business. The fall in the prices of sugar,
rubber, steel and other leading commodities was followed
and in some cases anticipated by the price movements of
stock specialties. Liquidation of stocks was encouraged by
the pressure of the banks.
In the face of these conditions the number of security
issues was exceptionally large. The lists given elsewhere in
this issue show that the provincial governments were very
heavy borrowers, and while the smaller municipalities
generally kept out of the market, ■ the larger cities also
borrowed freely. The high rates prevailing for New York
exchange resulted in an unusual proportion of the new loans
being placed there, heavy obligations for many years to
come being piled up in this way. Corporate financing was
also active, especially in speculative stocks. Theatre issues
were especially numerous, and considerable interest was also
evinced in mining and oil issues.
There has, therefore, been a good deal accomplished
during the past year in the way of restoring business to a
more healthy and normal state. The process of deflation is
bound to bring its difficulties in the way of failures, contrac-
tion of profits and readjustment of. wages, but there is good
evidence that the process is being brought about gradually
and the danger of collapse or panic is thereby minimized.
January 7, 1921
THE MONETARY TIMES
Business Indices Reflect Contraction of Business
Peak of Business Activity, As Reflected By Bank Clearings, New Building. Failures,
and Other Figures, Was Reached at Beginning of 1920 — Building Inactive, While
Failures Increase — Falling Stock Prices Anticipate Further Business Contraction
CANADIAN business reached its greatest activity in
January, 1920, according to an average of commonly ac-
cepted indices, compiled by Babson's Statistical Organiza-
tion, Wellesley Hills, Mass., and grapliically presented be-
low. The black areas are formed by combining and plotting
figures on Bank Clearings, New Building, Failures, Com-
modity Prices, Railroad Earnings, Security Prices, Ratio of
Bank Cash to Liabilities, and Money Rates — subjects whicli,
taken together, make a reliable measure of general busi-
ness. The X-Y line represents the average gain or growth
in business. In locating the X-Y line we have assumed that
the law of equal action and reaction applies to business and
gi-owth of the country, with a more rapid increase in 1007, a
year of crisis. The year 1914 again brought depression,
with many failures up to the middle of 1915, when war-time
expansion commenced. Thereafter the number of failures
fell to a very low point in 1918 and again in 1919. The
past six months have found them growing rapidly.
Building Operations
Building was very inactive during the war years. There
was a slight revival in 1918, due to the great scarcity of
houses and business plants which was making itself felt;
a substantial revival took place in the summer of 1919, and
Coprr^lhl All Ri(ht> Stncil, R«i
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IMS
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IMS
1909 mo 1911 1912 19i3 19(4 1915 1916
1917
1918
1919 19J0
Babson Compositplot of Canadian Basmess Conditions
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Failure
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.
economic phenon.ena just as it does to mechanics, chemistry,
medicine and other sciences. In other words, for every de-
gi'ee of over-expansion in business a corresponding rest
period or depression must be experienced. The X-Y line,
therefore, is drawn to make the two areas of each cycle equal,
its trend being detei-mined in accordance with such statistics
of growth as are available.
Two Cycles Completed
There are now two complete cycles on the plot. The
first (Areas B and C) runs from the end of 1905 to 1908.
The second (D and E) runs from 1908 to the latter part
of 1915. For the past five years a large area of business
expansion has been developing, which indicates that a re-
action in trade may normally be expected.
The red line represents the monthly average prices of
ten stocks. The solid black line shows failure liabilities;
the dotted black line, new building. The figures for new
building and commercial failures are plotted quarterly.
The movement of failures, it will be noticed, is very
irregular. It seems usually to be higher at the end of each
year, because that is the end of an accounting and settling
period and also because business is usually quiter at that
season in Canada. There was a gradual increase, however,
from 1904 to 1914, which was not out of proportion to the
in the summer of 1920 operations again approached their
pre-war proportions, followed by the usual autumn decline,
Stock prices are the most sensitive of all business in-
dicators, anticipating the others by several months, and these
do not hold out any hope of revival. The high levels of 1916
were followed by a long decline, in anticipation of the post-
war depression which was bound to come. In 1918 and 1919,
however, the reconstruction activity was anticipated by an
upward movement, which culminated in November, 1919,
but after which a real fall did not take place until the
third and fourth months of 1920.
The average trend of business, represented by the black
area, indicates that the second half of the cycle commenc-
ing in 1916 has set in, and that a fairly long period of
depression may be looked for.
In the developments of the next few years, therefore,
an increase in the number of failures and reductions in
profits, as reflected by lower stock prices, may be looked for.
Nor can the volume of building be expected to increase very
much until such time as costs have been reduced to a level
commensurate with market values. Bank clearings, railroad
earnings, loans and trade figures should show reductions in
accordance with the condition of business as a whole. Rates
for money, on the other hand, should before long show an
easier tendency.
THE MONETARY TIMES
Volume 66
More Stable Policy Needed for Welfare of Canada
Slump in Prices is Test of Country's Industries— Europe's Need Does Not Help
Business Here— What Measure of Tariff Protection Necessary Could Be Scien-
tifically Ascertained — National Debt and the Resulting Burden on Industry
By W. W. SWANSON, Ph.D.
Professor of Political Economy, University of Saskatchewan
IT was pointed out in the early months of the war by Prof.
S. Patten of the University of Pennsylvania that a sudden
decline in prices after the cessation of hostilities might easily
wipe out all the war profits of the republic and cause hard-
ship and suffering throughout the world unparalleled in mod-
ern economic history. While it is quite true that natural
resources, farms, factories and other concrete economic goods
would remain after such a collapse of prices, nevertheless the
actual loss of wealth following a steep fall in market values
would adversely affect the entire business life of the nation.
It is of fundamental importance to speed up production in
Canada, but it is equally important to protect prices as far as
may be by refusing to give way to panic and the forces that
make for business depression.
It is admitted that Canada cannot escape the effects of
world-wide economic conditions, but much can be done to
maintain confidence in what is fundamentally sound in the
nation's economic life. Only a few years since trust-baiting
was a favorite pastime of demagogues and their followers in
the United States notably, as well as in the Dominion; but the
sober sense of the people has taught them that in the long
run business, big or small, must rest upon the good-will and
confidence of the people or it cannot endure. And what is
true of business in general is doubly true of the great basic
industries within the confines of our common country. The
time is opportune to make an earnest effort to co-ordinate the
interests and activities of the manufacturers, the agricultur-
ists and the several governments concerned to the end that
good-will may displace mutual suspicion and conflict. While
there always will be large issues of national economic import-
ance upon which opinion will be divided, there is much common
ground that can be cultivated for the common good. Confi-
dence in the integrity and fairness of men who control indus-
tries and governments is the sine qua non of national stability
and progress.
The West's Grievances
Rightly or wrongly, the agricultural West has felt that
its industrial progress has been liinited and thwarted by the
short-sightedness and selfishness of the manufacturing and
financial East. The fact is there, whatever its causes, and it
will do no good to speak of the sacrifices of the east in railway
building and the like for the development of the prairies. The
people of the west are persuaded that they are carrying their
fair share and more of the common burden of exploiting and
developing the natural resources of the nation. The various
provincial governments have, on the whole, given sympathetic
consideration to the conserving of the agricultural interests of
the people, but in general the Dominion's national economic
policy has placed the emphasis to too great an extent upon
manufacturing and to too small a degree upon agriculture.
As an excuse it is asserted in certain quarters that a gro\\nng
population can be provided for only by expanding industry and
commerce — that the amount of food required from the farm
is limited in amount, while the consumption of manufactured
goods has no definite limits. This loses sight entirely of the
significance of the relation of food supplies to an expanding
population and an expanding industrial environment.
In his "Economic Consequences of the Peace" J. M,.
Keynes draws attention to the fact that as late as 1890 Europe
had a population more than three times as great as the entire
population of tlie North and South American continents. Since
that time the populations of the new world and the old have
vastly increased. Before the war Russia was expanding at
the rate of 2,000,000 annually, Germany at the rate of 850,000,
and Austria-Hungary at 500,000. Europe was making vast
gains in population each year while on this side of the water
the increase in numbers was equally rapid. The net result
was a relative dearth of foodstuffs throughout the western
world. ^
The Cost of Food
This growing shortage of food supplies was evidenced by
the rising prices of foodstuffs everywhere. Mr. Keynes
reaches the conclusion that the economic law of diminishing
returns was at length making its effects felt ■ — that popula-
tion was pressing hard upon the means of subsistence. It
was in 1798 that Thomas Malthus formulated and presented
to the public his famous hypothesis of the relation of food sup-
plies to population; but the opening up of new areas of supply
during the nineteenth century caused his theories to fall into
discredit, when they were not forgotten. Once more, however,
the relation of agriculture to industry becomes of surpassing
importance, particularly in view of the fact that the United
States is rapidly approaching the point where it will be
rather an importer than an exporter of wheat and other food
commodities.
The bearing of all this upon the present agricultural situa-
tion in Canada is patent. Upon the prairies there is discon-
tent among both grain growers and stock producers with past
economic policies and present prices. The market for farm
products may be extensive and constantly expanding because
of the growing necessities of the world, but all that avails
nothing if the agriculturist cannot make a living commen-
surate with the efforts and sacrifices undergone. Canada's
greatest agricultural province, Saskatchewan, already begins
to show the effects of the narrowing of the gap between mar-
ket prices and costs of production. According to the figures
recently furnished to the legislature by the Hon. Chas.
Dunning, that province has seen more than one million acres
go out of cultivation in 1920. The total area under cultivation
in 1919 was 2.3,585,000, whereas the figures for 1920' are only
22,549,000. The wheat acreage for 1920 showed a decrease of
520,000 acres as compared with the previous year. The yield
per acre had increased from 8.5 to 11.2, the total yield of wheat
for 1920 being estimated at 113,125,000 bushels. Both the
yield per acre and the area under cultivation of oats are larger
for 1920 than for the previous year, the total yield of this
grain being placed at 141,549,000 bushels. There was an in-
crease of 27,000 acres sown to barley, and of 210,000 acres
sown to flax, while there was a falling off of 18,000 acres sown
to rye. There was a decrease of summer-fallow from 4,395,-
000 in 1919 to 3,751,000 in 1920, while the new breaking in
1920 amounted to only 549,000 acres. In cattle, horses and
swine there has been a heavy reduction in the numbers held,
sheep alone showing an increase. The price factor and the
high cost of production have been the chief reasons for this
serious falling off of agricultural production. The decline in
prices brings with it an enormous decline also in the purchas-
ing power of the west.
Raw Materials and Manufactured Goods
It is not forgotten that the falling off of market prices is
a phenomenon that characterizes the production of raw ma-
terials everywhere — from lead and zinc, copper and silver, to
sulphur, tea, coffee, cotton, raw silk and rice. Nevertheless, it
avails our fai-mers little to be assured that they are not the
sole sufferers in the liquidation of values. The simple fact is
that if too wide a gap is fixed between what the producers of
basic raw materials bring to market and what they must buy
for family purposes and to take care of the processes of pro-
January
THE MONETARY TIMES
duction, the fundamental industries will stagnate. This would
be fatal not only for those territories and countries still in the
pioneer stage of development, but for the secondary industries
depending upon them for support, for markets, and for buying
power, and for raw materials as well. Steps should be taken,
therefore, not only to aid the agricultural community to reduce
its costs of production but to alter its psychological attitude to
the buying of essential products. The markets of the west
and the export trade are vital to the manufacturing east, both
in Canada and the United States as well.
What Industries Need the Tariff
The psychology in the situation rests upon the economic
factors involved. Chief among these economic factors are the
tariff, finance and railway rates. With respect to the tariff it
will no longer suffice merely to ask critics of protection to
name specifically those industries that can exist without arti-
ficial aid, as Sir Henry Drayton asked Mr. Wood, president of
the United Farmers of Alberta, at Calgary. There ought to
be a scientific study of the tariff in Canada, similar to that
undertaken in the United States for the tariff commission by
Professor Taussig of Harvard and his staff of able assistants.
Such an examination could determine whether our manufac-
turers of agricultural implements and farm machinery, if
granted customs-free raw materials, are actually in a position
to give up the advantages of a protective tariff. Moreover, it
could also be decided whtit are the so-called "key" industries
requiring protection to render the Dominion secure in war and
peace, and which are the "luxury" industries for which the na-
tion is paying too great a price. Finally, the complex and
difficult problem of the relation of protection to necessary pub-
lic revenues could be at least tentatively solved. Such a scien-
tific study, undertaken by experts and representatives of all
classes, would accomplish something enduringly good, whereas
the present tariff inqury gets the nation nowhere. It is worth
while emphasizing these factors, for beyond doubt the decline
in the demand, at present, for manufactured products is due
in no inconsiderable measure to the belief on the part of the
agricultural producers of the west that their economic interests
have been sacrificed.
Need for the Wheat Board
The disclosure of facts under scientific analysis will do
much to allay suspicion and make for the building up of good-
will among the great economic groups in Canada. Nothing is
so unsettling to business as a state of unstable equilibrium
occasioned by mutual distrust. What is required, among other
things, is the working out of a definite national economic pol-
icy that will give due weight to the interests of the agricul-
tural community. The wheat board, for example, should be
reconstituted, not perhaps to assume the responsibility of actu-
ally marketing the farmers' big cash crop, but for devising
ways and means to assist in the marketing of that crop to the
best advantage. Some such organization is essential, not
merely for the marketing of wheat, but for the furnishing of
accurate information with respect to markets for other farm
products. Such a body should also institute studies concern-
ing costs of production, distribution and final saje of agricul-
tural commodities. With such data available something
worth while could be attempted to promote the best interests
of Canadian agriculture. A case in point is the purchase of
the entire output of New Zealand's butter by the British gov-
ernment, with a consequent decline in the domestic and export
prices of the Canadian commodity. The dairy industry is an
expanding one in the west and becoming of great economic im-
portance in agricultural operations. Balanced farming is not
only economically sound but of vital importance to the stabil-
izing of agriculture; but it is discouraging to produce the
goods only to find the markets blocked.
Debt and Taxes Are Heavy
On the other hand, it is equally essential to find steady and
profitable employment for factory operatives and those en-
gaged in commercial pursuits, as well as to discover markets
for the output of their labor. It has often been stated, but it
requires constant repetition, that the Dominion is in need of a
settled economic and political policy that will conserve the
interests of all classes of producers. The net debt of the na-
tion is, in round numbers, $2,225,000,000, and is still growing.
True, revenue is also increasing in a way that will take care
of fixed charges and current expenses, but the greater part of
that revenue — customs, excise and war taxes — is derived
from taxation and represents a heavy burden upon industry.
Among the nations of the world Canada is in a strong finan-
cial condition, but the finest statesmanship and the greatest
efforts on the part of all will be essential to keep it there.
During the past twelve months the external trade of the nation
has amounted to more than $2,500,000,000, the imports being
in excess of exports by approximately $125,000,000. Imports
from the United States are dangerously in excess of exports,
and every effort should be made to widen our export markets
in the Republic and in Europe.
To do so will involve a heavy reduction in costs of produc-
tion and selling prices. Until Europe is economically rehabili-
tated prices will not be materially hardened by extensive sales
there. On the other hand, the plant equipment of the Domin-
ion, consisting of field, mine, factory, railway and shop, is
capable of far greater production than in the days preceding
the war. A great deal of necessary woi-k, with restored con-
fidence, lies ready at hand in Canada in "deferred mainte-
nance"— in the consti-uction of buildings, and the production
of railway and other equipment halted by the war. There is
an immense amount of construction that ought to be immedi-
ately undertaken by the federal and provincial governments,
in the building of public works, the St. Lawrence deep water-
way system, and the making of roads. Such economic under-
takings would stimulate the demand for the output of fac-
tories and aid in keeping the wheels of industry revolving. To
those who insist upon public economy it may be replied that a
collapse of Canada's industrial system, with consequent unem-
ployment, would in the end place far heavier burdens upon
the people, industry and the government than any additional
tribute of taxation now to take care of interest upon public
capital expenditures.
Demand Limited by Purchasing Power
It must be squarely recognized that owners can operate
plants only if costs of production are fnet, including a fair
retui-n on capital. True, the European nations are in need of
goods, but that need can be translated into economic demand
only as it is backed by purchasing power. The old analogy
based upon civil war conditions and following prosperity does
not hold good to-day for the simple reason thjit the civil war
struggle was a domestic struggle and confined to a single ter-
ritory, permitting the United States to depend upon Great
Britain and other wealthy nations for financial aid. Since the
armistice the United Kingdom has labored hard to revive the
trade of the continent, but the task is too stupendous for the
efforts of one nation alone. The action of the United States
in refunding only $100,000,000 of the Anglo-French loan fur-
ther depressed European exchange and made it more difficult
for the British and French to purchase the goods produced on
this continent. As a first and essential step in increasing the
buying power of Europeans the United States must come to
the financial support of those war-stricken nations.
Danger of Unemployment
The great danger threatening the economic life of
Canada and the United States is that under-employment
may develop, or unemployment, with resultant low wages,
or their lack, and a general breakdown of the stan-
dard of living, and hence of the buying power of the
masses. During a period of falling prices, also, there is little
or no incentive for the manufacturer to extend his plant and
engage in new enterprises. The factor in the situation, there-
fore, making for business stability is the discovery of new
markets for the output of our factories and the prevention of a
sudden collapse of prices. The laws of the United States have
been adapted to meet changed conditions, and now permit and
encourage export associations of American manufacturers. It
is highly expedient that Canadian business be fostered and
developed by similar measures, notably by export associations
and the sending of able agents abroad to broaden export trade
with the United States. For under the new price conditions a
larger volume of goods must be produced to enable manufac-
THE MONETARY TIMES
Volume 66
tuiers and the govei-nment to carry their financial obligations.
Germany, before the war, owed its commercial and indus-
trial success in no small measure to efficient financial, as dis-
tinguished from commercial, banking. German financial insti-
tutions were prepared to hold long-term securities as the basis
of financial support for the export trade of German manufac-
turers. The iiuestion has already been raised in London as to
what can be done to establish a bank of rediscount for the
empire, but the equally important problem remains to be
solved as to how long-time credit can be offered by British
and Canadian manufacturers without dangerously placing lim-
its upon their liquid assets. It is not tlie business of commer-
cial banking to assume such risks, but the time is at hand
when Canadian manufacturers must find some safe method of
granting longer credits if they arc to strengthen their position
in foreign markets.
Canada's Economic Progress at a Glance
Development of the Dominion Geographically Illustrated in Figures of Production, Trade
Banking and Currency - Effect of the War on the Country's Industry Clearly Reflected
'T'HERE is no better and easier way of describing the eco-
A nomic development of a country than by statistics. A few
well-selected figures contain more information than any liter-
ary volume in this respect. In the following tables, which
have been carefully prepared and selected by The Monclayy
Times, the economic progress of the Dominion is graphically
illustrated: —
POPULATION
■(Immigration
PRIMARY PRODUCTION— Continued
1871 3,689.257
1881 4,324,810
1891 4,833,239
1901 5,371,315
1911 7,296,643
*1914 7,725,000
1915 7,928,000
1916 8,140,000
1917 8,361,000
*1918 8,593,000
*1919 8,835,000
* Estimated
1897 21,716
}1900 23,895
1905 146,266
1910 208,794
1913 402,432
1914 384,878
1915 144,789
1916 48.537
1917 75,374
1918 79,074
1919 ■ 57,702
t From other countries.
+ 6 months — Jan. to June.
. PRIMARY PRODUCTION
Total value Wheat yield Value of
field crops bushels wheat
1914 $638,580,300 $161,280,000 $196,418,000
1915 825:370,600 393,542,600 356,816,900
1916 886,494,900 262,781,000 344,096,400
1917 1,144,636,450 233,742,850 453,038,600
1918 1,372,935,970 189,075,350 381.677,700
1919 1,452.437,500 193,260,400 364,857,000
PRIMARY PRODUCTION— Continued
Total value of pulpwood Fisheries
1914 $8,089,868 $33,207,748
1915 9,426,217 31,264,631
1916 13,104,458 35,860,708
1917 18,817,483 39,208,378
1918 24,886,475 *60,363,502
* Calendar year.
PRIMARY PRODUCTION— Continued
Coal Coal
tons value
1914 13,637,529 $33,471,801
1915 13,267,023 32,111,182
1916 14,483,395 38,817,481
1917 14,046,759 43,199,831
1918_— 14,979,213 55,752,671
1919 13,586,300 54,051,720
PRIMARY PRODUCTION— Continued
Gold Silver Nickel
ozs. ozs. lbs.
1914 773,178 28.449,821 45,517,937
1915 918,056 26,625,960 68,308,657
1916 930,492 25,459,741 82,958,564
1917 738,831 22,221,274 84,330,280
1918 710,526 21,284,607 92,076,034
1919 767,167 15,675,134 44,542,953
Copper Total value
lbs. mineral production
1914 75,735,960 $128,863,075
1915 100.785,150 138,920,759
1916 117,150,028 177,201,534
1917 109,227,332 189,646,821
1918 118,415,829 210,204,970
1919 74,124,653 173,075,913
BANKING STATISTICS
Paid-up Capital
Oct. 31. Total assets and Reserve
1910 $1,260,755,709 $176,889,102
1911 1,381,280,989 199,582,373
1912 1,521,105,096 218,773,578
1913 1,575,550,980 226,966,252
1914 1,577,919,069 228,245,019
1915 1,657,256,962 226,738,438
1916 1.968,940,288 226.053,811
1917 2,244,878,054 225,187,422
1918 2,638,839,732 217,712,095
1919 2,967,598,848 241,152,863
1920 3,155,601,568 257,682,757
BANKING STATISTICS— Continued
Deposits on demand
Oct. 31 and after notice Circulation
1910 $829,855,337 $95,992,866
1911 918,404,607 105,855,021
1912 1,023,912,500 110,696,877
1913 1,011,367,714 118,234,359
1914 1,008,539,512 123,744,682
1915 1,093,379,043 122,782,233
1916 1,303,527,638 145,031,667
1917 1,480,849,299 195,298,212
1919 1,968,027.027 242,509,573
1920 1,958,927,532 252,882,760
LOAN AND TRUST
Loan Companies Trust Companies
(assets) (assets)
1914 $70,588,091 $10,740,640
1915 71,992,666 7,306,350
1916 70,872,297 7,826,943
1917 69,676,223 7,656,292
1918 69,995,036 8,836,i37
CURRENCY
*Dom. notes tBank notes
in circulation in circulation
1911 $99,308,945 $89,982,223
1912 111,932,238 100,146,541
1913 116,363,537 105,265,336
1914 114,182,098 104.600,185
1915 152,117,695 105,137,092
1916 175,494,135 126,691,913
1917 178,564,970 161,029,606
1918 281,336,474 198,645,254
1919 299,530,655 218,919,261
1920 292,016,290 228,220,603
* Year ended June, t Monthly average.
January 7, 1921
THE MONETARY TIMES
TRADE OF CANADA*
Fiscal year Exports of Exports of
ended March Canadian produce foreign produce
1906 $235,483,956 $11,173,846
U907 180,545,306 11,541,927
1908 246,960,968 16,407,984
1909 - 242,603,586 17,318,782
1910 279,247,551 19,516,442
1911 274,316,553 15,683,657
1912 290,223,857 17,492,294
1913 355,754,600 21,313,755
1914 431,589,658 23,848,785
1915 409,419,503 52,023,67r
1916 1 741,610,953 37,689,432
1917 1,151,461,855 27,835,332
1918 1,540,318,069 46,142,004
1919 1,207,613,806 52,321,479
1920 1,239,492,098 47,166,611
* Merchandise only. t Nine months.
TRADE OF CANADA*— Continued
Fiscal year Imports for Total trade
ended March consumption of Canada
1906 $283,282,204 $529,940,006
tl907 249.737,874 441,825,107
1908 351,879,955 615,248,907
1909 288,217,515 548,139,881
1910 369,815,427 668,579,420
1911 451,745,108 741,745,318
1912 521,448,309 829,164,460
1913 670,089,066 1,047,157,421
1914 618,457,144 1,073,894,368
1915 455,446,312 916.888,821
1916 507,817,159 1,287,117,229
1917 845,356,306 2,024,567,406
1918 962,543,746 2,548,713,538
1919 916,443,432 2,176,378,717
1920 1,064,528,123 2,304,020,221
* Merchandise only. t Nine months.
BOND SALES
Year Sales in Canada Sales in U. S.
1910 $39,296,462 $3,634,000
1911 44,989,878 17,553,967
1912 37,735,182 30,966,406
1913 45,603,753 50,720,762
1914 32,999,860 53,944,548
1915 114,275,214, 178,606,114
1916 102,938,778 206,943,764
1917 546,330,714 174,708,365
1918 727,446,361 33,310,000
1919 705,385,419 199,446,670
BOND SALES— Continued
Year Sales in U. K. Total bond sales
1910 $188,070,128 $231,000,590
1911 : 204,269,143 266,812,988
1912 204,236,394 272,937,982
1913 277,470,780 373,795,295
1914 185,990,659 272,935,067
1915 41,175,000 335,106,328
1916 5,000,000 356,882,542
1917 5,000,000 726,039,079
1918 14,600,000 775,356,361
1919 5,105,133 909,937,222
The sales in the United Kingdom since 1915 have nearly
all been refunding issues.
TRANSPORTATION
Steam i-ailways Elec. railways
(earnings) (earnings)
1914 $243,083,539 $29,691,007
1915 199,848,072 26,922,900
1916 261,888,654 27,416,285
1917 310,771,479 30,237,664
1918 330,220,150 24,299,890
1919 I 382,976,901 35,696,532
INSURANCE
Fire Fire Fire
(premiums) (losses) (at risk)
1911 $20,575,255 $10,936,947 $2,279,868,346
1912 23,194,518 12,119,581 2,684,355,895
1913 25,745,947 14,003,759 3,151,930,389
1914 27,490,158 15,347,284 3,456,019,009
1915 26,474,833 14,161,949 3,531,620,802
1916 27,783,852 15,111,133 3,720,058,236
1917 31,246,536 16,379,101 3,986,197,514
1918 35,954,408 19,359,252 4,523,514,841
1919 39,914,398 23,207,647 4,904,396,461
INSURANCE — Continued
Life Life
(net in force) (premiums)
1913 $1,168,590,027 $38,641,206
1914 1,242,160.478 41,094,095
1915 1,311,616,677 45,106,678
1916 L 1,422,179,632 48,093.105
1918 1,785,061,273 61,641,047
1919 1 2,187,833,396 74,689,262
MISCELLANEOUS
Dun's Price
Bus. failures Index Bldg. permits
1911 1,332 127.4 $138,170,390
1912 1,357 134.4 185,233,449
1913 1,719 135.5 153,662,842
1914 2,892 136.1 96,780,981
1915 2,652 148.0 33,566,749
1916 1,677 182.0 39,724,466
1917 1,088 237.0 33,936,426
1918 873 278.3 36,838,270
1919 751 293.2 77,113,413
Canada's Progress Graphically Illustrated
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FRUIT PRODUCTION UNUSUALLY LARGE
The largest crops of fruit so far grown in southern On-
tario were grown in the year just ended. Prices of some
fruits were the lowest since 1914. This fall in prices, coupled
with the high cost of labor, of containers, of freight and other
expenses, cut down the profits of the growers. "Perhaps the
worst year we have ever had in our whole history as fruit-
growers," was the way a prominent fniit-grower summed up
the situation in the Niagara fruit belt. The growers claim
they have made hardly any money on the great output of
peaches, cherries, plums, etc.
THE MONETARY TIMES
Volume 66
New Government Legislation and Its Effects
Taxes Imposed at H)20 Session Have Swelled Dominion's Revenue — The
Government Shipbuildins Subsidy— Soldier Settlement Plan and Its Results
—The Tariff and the Tariff Commission— New Trade Relation Established
THE 1920 session of Parliament, which opened on February
21st and closed on July 1st, was notable more for the im-
portance rather than for the number of its enactments. In
volume its product was not nearly as large as that of the fii'st
session in 1919, but especially in matters of taxation there was
a launching out along new lines which made its work of a very
high order of importance.
The first Drayton budget represented something new in
Canadian taxation methods and general fiscal policy. As ex-
perience has shown, it was sagacious; but before results were
forthcoming to determine whether it was sagacious or not it
was generally admitted to be courageous. Pay-as-you-go as
a national policy sounded well, but the question was; How will
it work?
New Taxation Has Been Productive
Confronted by the problem of raising nearly $600,000,000,
Sir Henry cut expenditure as much as possible, but evidently
realizing that he could not by this means hope to make income
balance expenditure, he cast about for new sources of revenue
and decided to introduce the luxury and sales taxes, and also
made certain increases in the income tax. At the same time
he courageously reduced the business profits war tax and the
7% per cent, customs war tax. He estimated the revenue at
$381,000,000 and said that collections on outstanding accounts
and balances due from Great Britain would probably amount
to $570,000,000. There was no definite estimate of what the
new taxes would yield.
Under the classification "New excise taxes" are included
the taxes on luxuries. These, imposed with a view to check
the expenditure on what may be considered non-essentials,
were considerably altered by the time they had left the com-
mittee stage. They are so based and scaled as to exempt, as
far as possible, goods of a nature and price such as may be
considered necessary. They are paid by the purchaser to the
vendor at the time of sale and delivery for consumption and
use. They range from 10 to 50 per cent. The tax on beer,
wine and spirits was also increased.
The sales tax, which is in addition to the excise and the
customs tax, is a tax of 1 per cent, collected on all sales by
manufacturers, wholesalers or jobbers, and on the dutiable
value of importations, but in respect to sales made by manu-
facturers to retailers or consumers, or on importations by re-
tailers or consumers, the rate is 2 per cent.
Stamp taxes, the tax on cheques, was continued, the rate
•being increased on bills of exchange and promissory notes so
as to provide a two-cent tax on all bills or notes of $100 or
less, and for every additional $100 or fractional part thereof
two cents more. A tax of two cents for each share of stock
transferred was also imposed.
Income and Business Profits Taxes
The rate on incomes of $5,000 a year and upwards was
increased by 5 per cent. As a result the tax on a personal
income of $5,000 brings $126, compared with $100 before; on
an income of $50,000 $9,649.50 is collected, compared with
$5,782, and on $100,000 the collection is $10,500, as compared
with $6,000.
The business profits war tax was continued but reduced,
the exemption being extended from 7 to 10 per cent. • The new
schedule is as follows: On profits in excess of 10 per cent, but
not exceeding 15 per cent., tax 20 per cent. On profits in ex-
cess of 15 per cent., but not exceeding 20 per cent., tax 30 per
cent. On profits in excess of 20 per cent., but not exceeding
30 per cent, tax 50 per cent. On profits over 30 per cent., tax
60 per cent. The tax on pi-ofits of business with a capital of
not less than $25,000 and under $50,000 was reduced from 25
to 20 per cent, on all profits exceeding 10 per cent, on the
amount of capital employed.
The customs war tax, which amounted to 7% per cent.,
was abolished. The other tariff changes were of minor im-
portance.
Tariff Revision Promised
Sir Henry announced that the tariff commission would be-
gin its enquiry after prorogation. He also stated the tariff
policy of the government as follows: "Our policy calls for a
thorough revision of the tariff with a view to the adoption of
such reasonable measures as are necessary: (a) To assist in
providing adequate revenues; (b) to stabilize legitimate indus-
tries and to encourage the establishment of new industries
essential to the proper economic development of the nation, to
the end that a proper and ever-increasing field of useful and
remunerative employment be available for the nation's work-
ers; (c) to develop to the fullest extent our natural resources;
(d) to specially promote and increase trade with the Mother
Country, the sister dominions and colonies and crown depen-
dencies; (e) to prevent the abuse of the tariff for the exploi-
tation of the consumer; and (f) to safeguard the interests of
the Canadian people in the existing world-struggle for com-
mercial and industrial supremacy."
Assistance to Shipbuilding
In order to assist Canadian shipbuilding plants in securing
foreign orders legislation was enacted authorizing the govern-
ment to make advances upon approved securities up to 50 per
cent, of the value of such orders, a condition being that one-
fourth of the value of the vessels ordered should be paid for
in cash, the other fourth to be arranged for by the builder.
The advances thus authorized were $20,000,000. Mexico en-
deavored to take advantage of this provision, but owing to the
instability of conditions in that country her application was
not entertained. It is understood that other applications have
been made.
Railway Problems
Railway matters occasioned a great deal of discussion, as
these involved an expression of opinion on the cost of operat-
ing the Canadian National system and the Grand Trunk, to-
gether with opinions as to their value and the extent of the
obligations assumed in the taking over of these enterprises.
The statement of the minister of railways to the effect that
the deficit on government railways was $48,611,000 produced a
lengthy debate, the opposition contending that in reality the
deficit was much larger. There was further discussion over
the authorizing of advances for approximately $17,000,000 to
the Canadian Nationals for equipment, also over the authoriz-
ing of a loan of $25,000,000 to the Grancl Trunk. During the
year the Canadian Nationals floated a $15,000,000 equipment
loan in the United States, guaranteed by the Dominion gov-
ernment, while another loan of $25,000,000. issued by the
Grand Trunk and also guaranteed by the Dominion govern-
ment, was disposed of over there.
Among acts of special importance to men of business was
that relating to trusts and loan companies, and which, in so
far as inspection is concerned, placed them on the same basis
as insurance companies. The inspection will be of a regular
nature. The Supreme Court Act was amended so as to bring
about a simplification and uniformity of procedure in matters
relating to the court and to prevent appeals being brought be-
fore it in matters of a low order of importance. Appeals are
now restricted to cases in which the amount at issue exceeds
$2,000 in value exclusive of costs; in all other cases appeals
shall be made by special permission of the highest court in the
province.
A considerable increase was made in pensions to returned
soldiers. The wheat board gave rise to much discussion, the
.lanuaiy 7, 1921
THE MONETARY TIMES
government being given power to recreate the board if it were
deemed advisable to do so.
Soldier Settlement
The soldier settlement scheme developed rapidly during
the year and has proven to be undoubtedly the most impor-
tant permanent colonization effort of its kind that Canada
has ever seen. To date approximately 57,000 returned sol-
diers have made application for the purpose of qualifying
and thus taking advantage of its opportunities. No less than
41,000 have been declared qualified, while over 19,600 have
received advances amounting to about $80,000,000.
Alberta has received by far the largest number of those
settlers, followed by Saskatchewan, Manitoba and British Co-
lumbia. Of the total over 85 per cent, have located west of
the great lakes, the figures by provinces being: Alberta,
5,637; Saskatchewan, 4,783; Manitoba, 3,250; British Colum-
bia, 2,907; Ontario, 1,374; New Brunswick, 493; Quebec, 454;
Nova Scotia, 392; Prince Edward Island, 291.
The loans approved by the provinces are: Alberta, $22,-
410,192; Saskatchewan, $19,352,307; Manitoba, $13,057,770;
British Columbia, $12,437,650; Ontario, $5,931,605; Quebec,
81,884,938; New Brunswick, $1,413,684; Nova Scotia, $1,376,-
130; Prince Edward Island, $783,377. The distribution of
loans has been as follows: To purchase land, $42,778,768; to
remove encumbrances, $2,173,955; for permanent improvement,
$9,039,823; for stock and equipment, $24,555,107.
Will Increase Farm Production
Prom the standpoint of its contribution to agricultural
production the scheme is of very great importance. To date
it has resulted in the locating of 20,000 men on the soil and
under conditions so favorable that with ordinary luck they
cannot help but make good. These men have, in form of
soldier grant entries, received over 1,600,000 acres, and an-
other 500,000 acres through the exercise of their civilian right,
or a total of over 2,100,000 acres. It is also to be remembered
that less than one-half of those qualified have been placed.
Now, 2,100,000 acres sown to wheat and yielding 16 bushels
per acre, which was the average for all Canada this year,
would produce over 33,000,000 bushels of wheat, an amount
equal to the spring wheat yield for all Canada in 1900.
It may also be pointed out that this average is greater
than that under crop in the whole of the maritime provinces
as late as 1914.
The value of this settlement may also be stated in another
very striking way. The C. P. R. estimates that the yearly
value to the railways of the average farmer settler in the
west is $746.33, this figure being obtained through dividing
the number of farmers in the prairie provinces into the rev-
enue derived from the movement of agricultural produce, also
coal and in-and-outgoing passenger traffic. Capitalized at BV,
per cent. $746.33 is worth $13,569.63, which, the C. P. R. con-
cludes, is the value of each western farmer to the country. In
this basis of calculation these 20,000 farmers placed through
the soldier settlement board should be worth $270,000,000 to
the country. If all those qualified go on land the value of the
total settlement to the country should equal half a billion dol-
lars.
Returned Soldiers' Insurance
Among other legislation of the session was the Returned
Soldiers' Insurance Act, which came into operation on Septem-
ber 1st, 1920. It applies to returned soldiers and to the
widow of a returned soldier who died after honorable dis-
charge from service and before September, 1921. Policies
are issued for a minimum of $500, and in multiples up co
$5,000. The insurance money is payable only at death or on
permanent disability of the insured, the maximum amount
paid in one sum being one-fifth of the amount of the insur-
ance, the remainder being paid in annuities. The insurance
must be applied for before September 1st, 1922. The amount
of such insurance in effect at the beginning of November was
$2,203,000, the number of policies issued being 649.
The tariff commission, consisting of Sir Henry Drayton,
chairman, Hon. J. A. Robertson and Hon. Dr. Tolmie opened
its sessions in Winnipeg on September 18th, where represcnta-
ti\"es were heard chiefly from the Canadian Manufacturers'
Association and the Grain Growers. In the west sittings were
also held at Medicine Hat, Vancouver, Victoria, Vcmon, Nel-
son, Trail, Calgary, Edmonton, Saskatoon, Rcgina and Bran-
don; also at Port William and Port Arthur, and Sault Ste.
Marie. The eastern itinerary opened at Charlottetown on
November 4th, other places visited being Sydney, Halifax, St.
John, Moncton, Quebec, Sherbrooke, Three Rivers, Montreal,
Kingston, Hamilton, London, Windsor and Toronto.
Results of New Taxes
The new taxes, together with the more vigorous and effi-
cient collecting of the income tax, have produced abounding
revenues so far during the current fiscal year. Very gratify-
ing indeed have been the returns from the luxury and sales
taxes, these, with a i-eduction in expenditure, having enabled
the finance department to report at the end of October a reduc-
tion of $2,634,356 in the net national debt during the month.
The receipts from the luxury and sales taxes, which are in-
cluded under the item internal revenue, were $38,985,991 for
the seven months ending October, an increase of $30,870,000
over the returns for the same period in 1919. During October
they were $9,534,178, as compared with $1,045,708 in the pre-
ceding October. The reduction in the business profits tax is
showii in the reduced collections, which amounted to $16,889,-
720 for the seven months, compared with $17,787,975 for the
preceding seven. The income tax collections were $7,297,512,.
compared with $1,946,419. For October alone they were $712,-
093, against $272,691 for the same month last year. The cus-
toms collections for the first six months of the fiscal year ran
over $24,000,000 ahead of those for the same months in 1919,
but in October they began to fall behind. Up to October 31st
the total revenue for the fiscal year was $256,576,967, com-
pared with $186,408,794 for the same period in 1919.
At this rate the revenue for the fiscal year would -amount
to $437,000,000, and it is quite possible that this amount may
be realized. Certainly $400,000,000 seems to be within reach.
The customs revenue has been surprisingly high, the average
for the first seven months being $17,546,000 a month, which, if
maintained, would mean over $200,000,000 for the year. When
he announced the abolition of the 71/2 per cent, customs war
tax Sir Henry Drayton expressed the view that the collections
might be $160,000,000 for the year. That they have so ex-
ceeded expectations has been due to the unexpectedly heavy
importing, especially from the United States.
These revenue figures makes those of pre-war days look
small. In the fiscal year 1912-13 the total revenue was but
$168,690,000 and constituted the record up to after the out-
break of the war. The revenue for this year will exceed that
by more than two and one-half times. Nor can it be said that
the present revenue occasions hardship. As an evidence of
how the per capita revenue has increased it may be pointed out
that in 1868 it was equal to $4.05 per capita; in 1878, $5.49;
1888, $7.66; 1898, $7.80; 1908, $14.80; 1918, $30.35; 1920-21.
probably $44.
The department of finance made a praiseworthy departure
during the year in altering the balance sheet by eliminating a
number of "inactive" assets, or assets of a doubtful character
It is true that in doing so the net national debt was increased
by well on to $300,000,000, but there was nothing to be gained
by including among the "active assets" a number of loans xo
railways that had been taken over by the government. The
net national debt now stands at approximately $2,275,000,000.
and the gross at approximately $3,045,000,000.
Canada-West Indies Trade Agreement
The Canada- West Indies trade agreement was negotiated as
a result of a conference held during June between representa-
tives of Canada and the Bahamas, Barbados, Bermuda, British
Guiana, British Honduras, Jamaica, Leeward Island, Trinidad
and the Windward Islands. By it Canada affirmed the princi-
ple of granting a preference on all goods the product or manu-
facture of any of the foregoing colonies imported into the
Dominion which are subject to duty, or may be subjected to
duty at any future time, and the colonies reciprocated. The
THE MONETARY TIMES
Volume 66
duties on all goods, other than tobacco, cigars, cigarettes, spir-
ituous or alcoholic liquors, are not to be more than 50 per
cent, of the duties imposed on similar gpods imported into
Qanada from foreign countries, special ti-eatment being grant-
ed to sugar imported from the islands. Subject to certain
special provisions, the duties on all dutiable goods other than
tobacco, cigars and cigarettes, which are the product or manu-
facture of Canada, shall be imported into the colonies accord-
ing to the following preference: In the case of Barbados, Brit-
ish Guiana and Trinidad, 50 per cent.; British Honduras, the
Leeward Islands, and Windward Islands, 66% per cent.; Ber-
muda and Jamaica, 75 per cent.; Bahamas, 90 per cent, of the
ordinary tariff rate. Special provision was also made for the
establishing of direct mail, passenger and freight steamship
service between Canada and the British West Indies. The
treaty is subject to the approval of Parliament and of the
legislature of each of the colonies and of the colonial secre-
tary. All the colonies have ratified it. It will remain in
force for ten years after proclamation of it and be terminable
on twelve months' notice.
Wide Fluctuations Shown in Employment
Very Little Unemployment in Summer Months, But Rapid Increase in Fall-
Seasonal Fluctuations Greatest in Prairie Provinces, Proportion of Applicants
to Vacancies Grows — The Work of the Employment Service of Canada
By BRYCE M. STEWART
Director, Employment Service of Canada
IN 1919 a nation-wide employment service was established in
Canada by the Dominion and provincial departments of
labor in co-operation. In this Canada anticipated the recom-
mendation of the international labor conference that "Each
member which ratifies this convention shall establish a system
of free public employment agencies under the control of a
central authority." At present there are 75 offices in oper-
The service regards the placing of applicants in employ-
ment and the recruiting of employees for employers as a local
problem in the first instance. If, however, the local office is
unable to fill all its orders or place every applicant in its own
zone of operations the surplus of demand or of labor is re-
ported to the clearing house of the province. The provincial
clearance officer is constantly receiving these reports of aver-
PERCENT
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ation, distributed among the provinces as follows: Nova Scotia
4, New Brunswick 1, Quebec 5, Ontario 27, Manitoba 9, Sas-
katchewan 9, Alberta 5, British Columbia 15. For the 11
months ended November 20, 1920, the number of vacancies
notified to the offices of the employment service was 452,293,
of which 394,710 were for men and 57,583 were for women.
Applications for employment for this period numbered 450,-
544, of which 407,422 were received from men and 43,122 from
women. The placements of men were 314,981, and of women
27,529, a total of 342,510. In addition 73,803 casual place-
ments were effected. The total placements for the calendar
year will be approximately 450,000.
ages and circulating them in clearance bulletins throughout
all the offices of the province. Frequently a local superinten-
dent is able to match his surplus of carpenters, for example,
with an unsatisfied demand for these tradesmen in some other
locality. He communicates by telephone or telegraph with
the other superintendent concerned and arranges a transfer
if both parties are satisfied.
After demand and supply have been ironed out in this
way as smoothly as possible over the province the provincial
clearance officer reports any orders for employees or applica-
tions for employment still unsatisfied to the Dominion clear-
ing house of the district — at Winnipeg for the west, at Ot-
January 7, 1921
THE MONETARY TIMES
tawa for Ontario and Quebec, and at Moncton for the mari-
time provinces. Tlie Dominion clearing house circulates these
items among employment offices in adjacent provinces, or if it
seems desirable in all the remaining offices of the country.
As before, the local superintendents are authorized to com-
municate directly with one another in arranging to transfer
persons to satisfy orders in interprovincial circulation.
Reduced Railway Rates
■ To assist the service in this clearance work a special
transportation rate for persons being sent to employment at a
distance has been granted by all the large railways. Under
this transportation arrangement a reduction from the regular
fare is granted on all trips of 116 miles or more, a flat rate
of $4 being charged on trips from 116 to 177 miles, and a rate
of 2¥i cents per mile on trips of more than 177 miles. Re-
duced fares are granted to applicants on presentation of a cer-
tificate signed by the superintendent of the local employment
offices. The certificate is granted, of course, only in cases of
bona fide placements through the employment service. The
rate presupposes the existence of a well-organized system of
provincial and interprovincial clearance to insure that persons
will not bo despatched long distances when suitable employ-
ment is available near at hand. The importance of this re-
duced fare plan in enabling the service to secure employment
for persons who would otherwise be out of work, and at the
same time to increase production, can scarcely be over-empha-
sized.
Relation of Employment to Industry
The reports of applications, vacancies and placements
received from the local offices afford a valuable index of labor
market conditions and the accompanying chart is of some in-
pLRCEIiT/qGEl CH/^NGE IM MUnBER OF PER50N5 ON P/qv'-ROLLS, /^5
REPORTED WEEKLY bY EHPLOYERS NflKING RETURNS FOR CflNflDfl,
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AUG. SEPT. OCT.
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THE MONETARY TI
E S
Volume 66
terest from that standpoint. It shows that from March 1,
1919, when the statistics first became available, until the last
week of July, the spread between the supply of labor as indi-
cated by applications for employment and the demand for
labor as evidenced by employers' orders was never very
great. The supply, as would be expected, was somewhat in
excess of demand in the early spring but demand was slow co
overtake supply and it was not until the end of June that the
number of workers required was in excess of the applications
for employment. Industry had not completed the change
from war to peace production and as demobilization threw
thousands of men on the labor market the usual spring absorp-
tion was delayed. Indeed it was not until the heavy demand
for labor for the western harvest that demand rose above
supply pronouncedly. During the autumn orders for labor
kept up very well and a surplus of labor was not registered
until the second week of November, with the release of num-
organized. Reports of the number of persons on pay-rolls are
received weekly from 5,000 industrial enterprises employing
about 700,000 workpeople. Assembled by industrial groups
they constitute a very good barometer of the employment sit-
uation in industry. The accompanying chart shows the
change weekly in the number of persons employed since the
base week — January 17 — as reported by employers making
returns from Canada as a whole, and by districts. It had been
planned to use the first week of the year as a base, but this
was found impracticable because of the annual holiday and
inventory-taking period which occurs at that time. The per-
centage change rather than the actual number of employees
is used in plotting the curve for the reason that the number
of returns received weekly is not constant.
Taking the reports for all Canada the curve for the first
few weeks shows the recovery from the holiday season, but
from the middle of January until the 1st of April it remained
bers of men from railroad and construction operations and
from farm work.
Recovery Last Spring
All through the winter until the end of March, 1920, the
iniployment service carried a surplus of applicants on the reg-
isters, a peak being reached early in January when the regis-
tration of unemployed ex-service men for the federal emerg-
ency appropriation was heaviest. In the spring of 1920, how-
ever, recovery from the winter slackness was much earlier
than in 1919, the curve of demand rising above the curve of
supply about the 1st of April, as compared with the end of
June in the previous year. The demand for labor for the
western harvest was also somewhat heavier than in 1919 and
in the record week of the harvest season, as well as of the
year, 17,500 placements were effected as against 13,500 in the
corresponding week of the year previous. Evidence that we
are entering upon the winter of 1920 with a lesser volume of
emplojTiient than at the beginning of last winter is afforded
by the fact that in 1919 the demand as represented by vacan-
cies did not make a final crossing to a position below supply
as indicated by applications until the second week in Novem-
ber. This year the crossing took place in the second week of
October, just one month earlier.
Weekly Employment Reports
During the year a system of weekly employment reports
from representative employers of labor in all industries was
almost horizontal. During this period railway and other con-
struction work, which bulks so largely in the industry of the
west, was at its low level for the year, a fact which exerted a
strong bearish influence on the curve of employment for Can-
ada as a whole. With the advent of the usual spring expan-
sion in out-of-door work the volume of employment grew rap-
idly until a peak was reached in the middle of July, when the
number of employees on the pay-rolls was 9 per cent, greater
than at the middle of January. The various curves show that
this expansion was common to all parts of Canada, but very
marked in the prairie provinces and British Columbia, where
many thousands \vere drafted into railway and general con-
struction. The curve for the maritime provinces, partly due
to an unusual volume of construction work, was steepest of all.
The curve for the province of Ontario and Quebec closely
parallels the curve for the whole country, due, of course, to
the large proportion of the total industrial population within
these two provinces. The recession from the peak in July is
accounted for mainly by the numerous separations from indus-
try and especially from construction work on the part of work-
ers going to the harvest fields", a movement which appears in
the curve for the prairie provinces and also in the curve for
Ontario and Quebec. With the conclusion of the harvest the
workers returned to industrial employment in large numbers,
especially in the west, where the fine open fall favored rail-
way and other construction. At the middle of November in-
dustrial workers in the prairie provinces were still very well
January 7, 1921
THE MONETARY TIMES
19
employed, but the employment curve for the country as a whole
had dropped to the position it occupied on May 1. The curve
for the maritime provinces was keeping up very well, but the
curve for Ontario and Quebec was falling rapidly because of
the slump in various manufacturing industries, chiefly cloth-
ing, boots and shoes, rubbei-, some branches of textiles, furni-
ture, pianos, automobiles, confectionery and sugar refining.
The rapid fall in the curve for British Columbia reflects
shrinkage in railway construction, lumbering and logging op-
erations and shipbuilding.
Trade Unions Also Report
Reports from trade unions as to the number of members
unemployed are indicative of labor market trends for skilled
workers in particular. Returns are received for the last day
of each month from some 1,500 unions with a membership of
approximately 200,000. As the accompanying chart shows
unemployment among trade unionists fell to an almost irreduc-
ible minimum during the war — less than 1 per cent, in the
summer of 1918. After the armistice the cessation of war in-
dustries, added to the unusual winter dullness, brought the
trade union unemployment curve in February and March, 1919,
to 5.6 per cent. — the highest percentage of unemployment re-
ported since the winter of 1915-16. The usual spring expan-
sion was somewhat retarded, but in the summer months only
slightly over 2 per cent, of the members were reported unem-
ployed. The curve mounted rapidly from the 1st of October
to the 1st of December, when an unemployment percentage of
5 was registered, but it dropped to 4 per cent, in January and
February, 1920. Not only was the unemployment curve lower
than in the previous winter, but improvement began earlier,
and in the months of March, April and May an unemployment
percentage of about .3 was reported, as compared with consid-
erably over 4 in the spring of 1919. While there was more
rapid recovery from winter slackness than in 1919, trade
unionists were not as well employed in the summer as in the
previous year, and at the end of- August the cui've registered
an unemployment percentage of 4. There was some recovery
in September, but by the end of October the curve had risen
steeply to 5.7 per cent., which brings us into the high altitude
attained in February and March, 1919, when demobilization
combined with seasonal inactivity to force the curve sharply
upwards. Unemployment among trade unionists in the cloth-
ing, boot and shoe and rubber industries in Ontario and Que-
bec, and in shipbuilding and lumbering in British Columbia,
was chiefly responsible for the steepness of the curve. Slack-
ness among the carpenters and joiners also contributed.
1920 A Year of Wide Changes
The various indices of employment maintained by the
employment service agree that 1920 was a year of early rise
and rapid fall in the labor market. The year 1919 was
weighted with the demobilization problem and it was mid-
summer before industry seemed to get under way. As if to
compensate for this tardiness the demand for labor continued
brisk into the late autumn and at the end of the year there
was no heavy surplus. The year 1920 accepted this heritage
blithely and gave promise of a twelve-month of activity. The
winter dullness passed off quickly. The number of ex-service
men registered for the federal emergency appropriation was
much smaller than had been expected. The percentage of
trade union members unemployed averaged only 3.5 for the first
four months of the year as compared with 5 per cent, in the
first four months of 1919. Demand for labor at the employ-
ment offices began to exceed the supply about the 1st of
April, two months earlier than in the year previous. Reports
from employers indicated expansion in the volume of employ-
ment beginning early in April and reaching a peak in July;
and building permits in 35 cities, which have not been dis-
cussed because of lack of space, registered their largest
monthly total of the year in April, $15,333,183, as compared
with a record of $11,995,683 for 1919. which was not recorded
until September. But the year 1920 was riding for a fall.
In July the curve of unemployed trade unionists registered a
higher percentage than in the previous year and in each
month following it has exceeded the 1919 mark. A surplus
of labor began to appear in the autumn, and applications for
work at the employment offices i-ose to a position above vacan-
cies offered by employers the second week of October, a month
earlier than last year. The employers' weekly reports show
that despite buoyancy in the prairie provinces the volume of
employment for the whole country has been shrinking
steadily since the last week in September, and in that month
the value of building permits fell below the figures for 1920,
and has so remained. The number of unplaced applicants on
the registers of employment oflSces is steadily increasing while
the number of unfilled vacancies has been declining at the
same rate.
It is now abundantly evident that 1919 was only the first
phase of readjustment from war to peace. Since midsummer
there has been much business unsettlement and many indus-
tries have been reducing staff's. To this unemployment will
be added that consequent upon seasonal inactivity, and we
must expect a volume of unemployment greater than that of
the winter of 1915-16.
BRITISH EMIGRATION TO CANADA RESUMED
Figures Show Big Increase During 1920 . — Movement From
United States Keeps Up
IMMIGRATION to Canada in 1920 was substantially in ex-
cess of 1919, as the figures on page 22 show. In the fiscal
year ended March 31 last 117,336 came to Canada, of which
59,603 were British, while for the previous year the figures
wei-e 57,702 and 9,914 respectively. During the seven months
ended October 31, 1920, 109,856 came to Canada, 60,370 being
British, 34,708 from the United States, and 14,778 from other
countries.
Falling Off in Autumn
In commenting on the movement, W. D. Scott, Dominion
superintendent of immigration, said to Tlie Monetary Times:
"It will be noticed that immigration to Canada during the
seven months ended October 31st of this year shows an in-
crease of 32 per cent. For the last three months of the period,
however, as compared with the corresponding months of the
preceding year, the increase is quite small. In view of the
fact that an order-iri-council of recent date, fixing the money
qualification for adult males at .$250, for adult females at $125,
and for children at $50 each, the same to become effective at
border ports on the 15th inst., and at ocean ports on the 1st
prox., it may perhaps be concluded that for the five months,
November to March, the number of immigrant arrivals may
not be expected to show any increase over the corresponding
months of 1919-20. If no falling off results the figures for
the fiscal year 1920-21 will he approximately 144,000, or about
23 per cent, increase as compared with that of 1919-20."
Movement from Across Border
In recent years the number of immigrants coming to
Canada from the United States has been greater than the
number moving in the opposite direction. A report of the
United States commissioner of immigration for the six months
ended June 30, 1920, says : "In the movement of United States
citizens to and from Canada, the balance is in favor of the
latter, for during the past ten years nearly 562,000 have gone
there and about 367,000 have come to the United States."
Figures showing the movement of immigrants between
the two countries show 329,316 going from Canada to the
United States in the five-year period 1910-1914, and 605,498
from the United States to Canada in the same time. In the
period 1915-16-17 289,165 persons left Canada for the United
States, while 158,105 came to Canada from the United States.
United States immigration officials say this was largely
due to the fact that the United States had not entered the war
at that time and there was unusual prosperity in that country.
Many former Americans were returning from Canada to work
in factories because of the higher wages offered. In 1918 and
1919, with the United States in the war, the situation was get-
ting back to normal.
THE MONETARY TIMES
Volxime 66
1920 a Record Year in Canadian Trade
Total Exceeds 1917 Figures— Adverse Balance Probably $85,000,000— Imports
Increased By Over $400,000,000, While Exports Stationary — Foreign Trade
Showing Good in Face of Changing Conditions— Exchange and Its Effects
By W. G. GATES
CANADA established a new trade record in 1920. The offi-
cial figures for the year are not yet available, but one is
warranted in saying that the value of the total external trade
is approximately $2,635,000,000. Until now the year 1917 with
$2,599,499,000 held the palm; but this has been beaten by
nearly $40,000,000, while the figures for 1918, the year in
which Canada was sending immense quantities of food and
munitions to Europe, have been left behind to the extent of
nearly $450,000,000. Canada did about $300,000,000 more
trade with the United States than she did in 1919; about $40,-
000,000 less with the United Kingdom, and probably $170,000,-
000 more with other countries.
The value of the exports is approximately $1,275,000,000
and that of the imports approximately $1,360,000,000, leaving
an excess of imports amounting to probably $85,000,000. How-
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ever, there is this to be taken into account: Canada has large
quantities of food to sell, and as other countries need these,
exports should at least equal if not exceed imports on the
whole fiscal year.
Per Capita Trade Very High
It is worth noting that the total trade for the year ex-
ceeds the net national debt by probably $400,000,000 ; it is over
two and one-third times greater than it was for the best year
before the war, and is equal to about $300 per capita. What
this really means is more cleai'ly realized when compared with
the per capita trade of the United States, which for 1920, ac-
cording to the best available figures, amounts to $132. In
point of turnover there is every reason to be satisfied with
1920, for in no other calendar year has Canada done as large
a per capita trade. It should also be borne in mind that these
huge figures wei-e rolled up in spite of rapidly declining prices.
Exports Have Fallen Off
While the total figures are thus much larger than ever be-
fore, it is regrettable that the exports show a slight decline,
for they amount to approximately $1,275,000,000, as compared
with $1,294,830,372 in 1919, and $1,243,727,769 in 1918. But
the situation is not as unfavorable as the comparative figures
might lead one to conclude. Though the figures for exports
are lower, they are nearly equal to 55 per cent, of the net
national debt. That they are lower than those for 1919 is due
inerely to the marked decline in grain prices during recent
months. Canada has 100,000,000 bushels more of wheat this
year than last for export, which means possibly $170,000,000
more in exportable values; and in the next few months it will
swell the export figures. So while returns for exports may
lower the potential value of this department of the nation's
trade is much higher than it was in either 1919 or 1918, and
that in spite of lower prices. It is furthermore to be taken
into account that the decline has been in foreign produce,
so that the exports of Canadian produce have remained
nearly stationary.
Much has been said about the decline in exports, but the
real gains made by exports should rather have commanded
attention. During the twelve months the value of commodi-
ties exported exceeded by $100,000,000 the value of all muni-
tions exported during the four years of war. It was also equal
to three-fourths of the national war expenditure. That a new
record was not established is easily explained. During the
year, owing chiefly to the rate of exchange and to the further
fact that many of the countries of Europe are now drawing
from other sources commodities fonnerly taken from Canada,
exports to the United Kingdom and France fell off to the ex-
tent of probably $200,000,000 during the year, of which pos-
sibly $170,000,000 is represented by reduced exports to the
United Kingdom. Among other things there was a loss of
$100,000,000 in munitions.
Strong Spots in Export Figures
This has been partially made up for by an increase of
nearly $100,000,000 in exports to the United States. That,
taking into account this serious loss of expoi'ts to Europe and
the decline in prices, the exports are so nearly equal to
those of last year, while much greater quantities of grain at
good prices remain to go out, is strong proof that, all things
considered, the export trade of Canada is in a satisfactory con-
dition.
In passing a word should be said on the recuperative
powers of the export trade manifested during the last two
years. In 1917 the exports of cartridges and other explosives
were valued at $435,000,000; in 1918 they were $273,000,000;
even in 1919 they exceeded $100,000,000; but in 1920 they
dropped to less than $2,500,000. Notwithstanding this serious
loss the industries of the Dominion, engaged solely in peace-
time production, last year turned out for export a volume of
commodities much exceeding in value that of 1918, when
Europe was paying Canada famine prices for almost any
product. For this recovery credit is due chiefly to the agri-
cultural and to the pulp and paper and lumber industries. The
pulp and paper exports for the year are estimated at $175,-
000,000, as compared with $70,661,000 in 1918, and $86,996,371
in 1919. Indeed, the progress made by this industry, reads
like a fairy tale and merits special attention.
In the fiscal year 1913 the value of pulp and paper exports
was $11,837,344. The advance to $58,753,906 for the calendar
year 1917. and to $86,966,371 in 1919 was surprising, but it re-
mained for 1920 to give a remarkable demonstration of growth.
In April the value of these exports was $8,172,356, but in Sep-
tember it had jumped to $18,224,356; that is to say, the value
increased by 120 per cent, in six months. In September alone
the value of pulp and paper exported w-as within $800,000 of
that for the whole of the fiscal year 1914. It is said on good
authority that last year Canada produced 75,000 tons more of
pulp and paper than Noi-way, Sweden and Finland combined.
January 7, 1921
THE MONETARY TIMES
Moreover, this is a permanent industry insofar as the present
generation of Canadians is concerned. This remarkable dem-
onstration of recuperative power when many good judges ex-
pected a collapse imparts confidence for the future.
Exchange Affects Trade Figures
Paradoxical as the statement may seem to be, it is never-
theless true, that insofar as exports to the United States are
concerned their real value to the country is not disclosed by
the trade returns, for while they were nominally valued at
probably $600,000,000, the rate of New York funds, which
ranged at 12 per cent, during the year, increased the returns
to the Canadian exporters by approximately $70,000,000 — that
is to say, these exports were really worth over $670,000,000 to
the country. On the other hand, imports from the United
States are not always increased in value by an amount equal
to the rate of exchange, for it must be remembered that in
order to hold their trade a very large number of American
firms divide the premium with their Canadian customers, while
some, indeed, bear it entirely.
In comparing the export trade of 1920 with that of 1919
and 1918 it must also be taken into account that only a small
portion of the business done during the year just closed was
obtained through government credits, or through long ad-
vances made by the banks, but rather on such terms as are
usually granted in the ordinary run of commercial transac-
tions. But not so the business of 1918 and 1919, a large part
of which was secured through liberal government credits, for
during the war period the aggi'egate advances extended to
allied governments probably reached $1,100,000,000, to which
should be added bank credits exceeding $200,000,000.
Compared with that of the United States the export trade
of Canada during 1920 was very creditable. The exports of
the great republic for the year are estimated at $8,000,000,000,
a new high record. But this is only $75 per capita, whereas
Canada's exports were probably $140 per capita. In other
words, the per capita export trade of this country during 1920
was 85 per cent, greater than that of the United States. Be
it also remembered that this huge American export trade is
sustained by nearly $4,000,000,000 of private credits. Had
such credits been at the disposal of Canadian trade 1920 would
have left all previous export figures far behind.
Large Increase in Imports
Imports took a long leap forward during the year, being
valued at approximately $1,360,000,000, an increase of approx-
imately $420,000,000 over the preceding year, and nearly $450,-
000,000 over 1918. In 1920 the imports were at the rate ol
$115,000,000 a month, whereas in 1919 the rate was but $104,-
557,000, and in 1918 $76,000,000. The increase may be attrib-
uted chiefly to the removal of the 7% per cent, customs war
tax and to the practice of Taluing imports from countries,
whose currency as compared with the Canadian dollar is de-
preciated, at the current rate of exchange. The imports from
the United States were approximately $930,000,000, or at the
rate of about $78,000,000 a month. This means that Canada
imported $200,000,000 more of commodities from the republic
than she did in 1919. Imports from the United Kingdom
show the lai'gest percentage of increase, 110 per cent., though
the increase in dollars is but a little over $150,000,000, the fig-
ures being $240,000,000, as compared with $87,651,725.
As an evidence of not only the value, but of the rapid
growth of trade with the United States, it may be pointed out
that the increase alone in imports during 1920 was within
about $40,000,000 of the value of all imports from the United
Kingdom. This was piled up in spite of the rate of exchange,
which operates to retard purchases from the Republic, while at
the same time it stimulates imports from the United King-
dom. During the year the value of imports from the United
States was probably equal to the value of all imports from all
countries in any previous calendar year. Ten years ago the
imports from all countries were only valued at $.370,000,000.
That, in spite of the obstacle, these imports increase so rapidly
is due undoubtedly to the fact that Canada is now drawing new
capital almost entirely from the United States, a large portion
of which necessarily enters in the form of impoi'ts, and to
stronger efforts in both countries to promote international,
financial and commercial relations.
Influence of Exchange Rates
The influence of the rate of exchange on e.xport trade was
more marked during the year than ever before. Among other
things it has made the United States Canada's best customer,
the United Kingdom having taken second place. Canada had
so increased lier exports to Europe during the war period and
her name stood so high among the nations of that continent
that prospects for the continuance of this trade seemed very
bright, and confident predictions were made by some of the
best-informed over the importance of this new trade outlet.
But in general these predictions were made without due regard
to the influence of exchange after the pegs had been removed
from sterling in New York. During the past year the effect
has been most apparent. As has already been noted, exports
to the United Kingdom and the continent of Europe declined
to the extent of over $200,000,000. The reason is obvious, for
with sterling at a discount ranging from 10 to 20 per cent, in
Canada, and with the currencies of other countries in Europe
subjected to an even greater discount, they cannot aff'ord to
buy here any more than is absolutely necessary.
On the other hand, the rate of exchange which has re-
duced exports to these countries has strongly stimulated them
to the United States, the gain having been equal probably to
at least $100,000,000 during the year. So that much of what
has been lost in trade with Europe has been regained with the
Republic. 'Wbile possibly 30,000,000 bushels of wheat were ex-
ported to the United States, which may be attributed almost
solely to the absence of a strong direct demand from the
United Kingdom, the increase was due largely to the heavy
demand for pulp, paper and lumber, and the higher prices
which these products commanded over other years. It is un-
doubtedly true, however, that the whole range of commodities
that could be sent south was strongly afi'ected by the premium
on New York funds, which made the American market by far
the most profitable of any outside of the country.
The change of direction taken by so large a portion of
Canada's export trade is of major importance. Only four
times since 1873 has this occurred, namely, in the fiscal years
1882, 1888 and 1889, and during the last calendar year. In the
years immediately preceding the outbreak of war the United
Kingdom was taking from $30,000,000 to $60,000,000 worth
or commodities more than from the United States. In 1915-
16 this excess was $250,000,000; in 1916-17 it was $465,000,000;
in 1917-18 it was $421,000,000, and in 1918-19 it had dropped
to $83,000,000, and in the calendar year 1919 to $46,000,000.
THE MONETARY TIMES
Volume 66
IMMIGRATION INTO CANADA, 1919-20
(Figures furnished to " The Monetary Tinics " by Mr. W. D. Scott, Superintenileni of Immigration. Ottawa.)
Statement of Immigration to Canada during the Fiscal Year 1919-20, compared with that of 1918-19.
United
Stales
1!)19
A!'..l
-Mav
lune
July
August
September .
October
November . . .
December. . .
1920
January
Februar\- . . .
.March..'
Totals...
4. 'id
6,310
209
4,. 554
i:u
3,277
30-1
2,719
199
3,610
2.S-_'
2,835
616
634
1,810
1,170
3,442
2, 194
1,796
2,226
2,085
2,641
6,46S
Other
Countries
383
438
461
444
706
344
626
799
576
805
753
7,073
7.123
5,261
3,895
3,468
4,515
3,461
3,436
3.195
3,436
4,633
4,616
10,663
57,702
191920
Percentages
of
Increase
irilish
United
States
Other
Countries
Totals
and
Decrease
Increase
3,244
7,524
5UU
11,268
58 per cent.
4,534
5,198
465
10,197
94
2,601
4,707
505
7,813
101
5,998
4,450
629
11,077
219
9,428
5,149
583
15,160
236
7,792
4,852
775
13,419
288
9,394
4,069
949
14,412
319
4,594
2,772
708
8,074
153
3,244
2,149
908
6,301
83 •■
2,089
1,665
465
4,219'
- 9 per cent.
2,008
1,951
638
4,597
4,677
5,170
952
10,799
1
)9,603
49,656 /
8,077
117,336
103%incre'se
Statement of Immigration to Canada, during the period, April to October, 1920, compared with that of the corresponding months of 1919.
1920-21
Month
April 3,244
-May 4,534
June 2,601
July 5,998
August 9,428
September | 7,792
October I 9,394
Totals 42,991
1919-20
United j Other
States Countries
Totals British
United Other
States Countries
7,524
5,198
4,707
4,450
5,149
4,852
4,069
35,949
500
465
505
629
583
775
949
11,268
10,197
7,813
11.077
15,160
1.3,419
14,412
6,229
12,414
9,844
10,472
7,404
6,405
7,602
6,324
5,353
4,720
4,.S01
5,838
4,227
3,945
83,346
60,370
734
1,844
1,780
1,888
2,510
2,718
3,304
14,778
13,287
19,611
16,344
16,661
15,752
13,350
14,851
Percentages
of
j 18 per cent.
I 92
109
50
I 4
109,856 I 32 per cent.
HOMESTEAD ENTRIES IN CANADA, 1898-1920
Years
Total entries
Entries by
English
Entries by
Scotch
Entries by
Irish ,
Entries by
Americans
Entries by Conti-
nental Immigrants
Calendar Year
1898
4, ,848
489
161
75
581
1,270
1899
6.689
578
192
97
1,064
1,796
•1900
7,420
3.50
95
50
833
1,643
Fiscal Year
1901
8,167
659
182
99
2,026
1,866
1902
14,673
1,096
300
184
4,761
2,653
1903
31,383
2,816
724
336
10,942
7,260
1904
26,073
3,486
911
267
7,730
4,909
1905
.30,819
4,284
1,225
421
8,532
4,999
1906
41,869
5,897
1,657
543
12,485
5,955
tl907
21,647
3,032
807
252
6,059
2,951
1908
30,424
4,840
1 ,026
339
7,818
5,373
1909
39,081
5,649
1,310
506
9.829
7,265
1910 •
41,568
5.4,59
1,326
546
1.3,566
6.696
1911
44,479
6,161
1,291
492
13,0.38
8,793
1912
.39,151
5,739
1,041
476
10,978
9.044
1913
33,699
4,452
836
307
8,895
7,757
1914
31,829
3,894
966
400
7,293
8,139
1915
24,088
2,974
800
363
4,334
6,881
1916
17,030
2,374
700
314
2,435
3.899
1917
11,199
1.469
496
194
1,734
2,1.32
1918
8,319
888
285
142
2,094
1,094
1919
4,227
639
182
87
876
447
1920
6,732
1,2.52
360
154
1,331
.574
tl921
1 3,784
611
169
76
754
441
.Six months ended June 30th. f Nine months ended March 3Ist. J 7 months to October.
January 7, 1921
THE MONETARY TIMES
Political Leaders Discuss National Issues
Tariff is Main Subject Dealt Willi in Western Towns — Premier Meighen
Upholds Present Tariff — Mackenzie King, Liberal Leader, Advocates
Retrenchment— T. A. Crerar, Progressive Leader, Stands For Tariff Reduction
Hon. Arthur Meighen, premier of Canada, and leader of
the National Liberal and Conservative party, which succeeded
the Unionist party in July last, in a speech at Winnipeg on
October 25, at the commencement of a tour of Western Can-
ada:—
"There must be," said Premier Meighen, "such a tariff as
will make it pay Canadian industries to remain in Canada, and
make it pay industries to grow and make good Vvithin this
country. Up to that point, and not beyond that point, the tar-
iff in Canada on any class of goods should go. I ask the peo-
ple of Winnipeg, if you first of all decide that you must take
account of the needs of industry and the need of keeping them
in this country, can you possibly adopt a more restricted prin-
ciple than that? We do not intend to go further. There is
no value whatever in a tariff that does less. I did not see
how to find out what is necessary except by the most careful
and thorough enquiry that can be made. That is the course
the government is pursuing, and before the electors in this
country are asked to decide between our course and the vag-
aries of our various oppositions they will have a definite tariff
from us in black and white. By the principle I have defined,
by the limits I have clearly set out, that tariff will be con-
structed.
"If I am asked whether it will be possible to have a lower
scale than prevails to-day or not, I say that must await the
completion of the investigation. For myself, I would hope
that in the final result it would be found not to be higher, and
perhaps lower, than it is now; but I believe the interest of
Canadians of every class require that Canadian industries re-
main Canadian industries, and that Canadian industries, not
American industries grow with the growth of Canada.
"The authority of Parliament over its executive is just as
complete, just as final, just as supreme at this hour and has
been at every moment of the last six years, as it ever has been
in the history of Canada or any country on earth. There has
never been a single day when Parliament could not, by a ma-
jority vote, have voted the government from office or forced it
to a general election."
The premier then proceeded to deal with the tariff'. There
were only the tariff principles, he said — protective and free
trade. "I believe the protective principle can be abused," he
said. "I certainly believe it can be too high. I believe it has
been abused. I believe in places and at times it has been too
high, but I don't believe it can be abolished. There are many
who believe that there is little, if anything, to be lost and very
much to be gained by practically a prohibitive tariff. With
that opinion the government of Canada holds no sjonpathy,
and against the prevalence of that opinion it will stand just as
firmly as against the prevalence of the opposite opinion, the
theory of free trade. If we abandon the principle of protec-
tion we will pay a sure and heavy penalty and every class will
share in the calamity. We do not intend any. system of shut-
ting out imports. We must hold the level of our tariff down
to the minimum that will maintain fair but active competition
with industries outside.
"The big task of the next few years is the development of
the resources of Canada. Constructive plans that bring real
results in the development of our resources must be thought
out and got under way, and_policies consistent with these plans
must be pursued. Do not let the west of this counti-y get the
idea that the east must remain the business centre or even
the manufacturing centre of this Dominion. A territory that
has the coal and the ore and the mineral wealth of Western
Canada is bound to become a great industrial land."
Hon. W. L. Mackenzie King, leader of the Liberal party
in the House of Commons, in a speech at Brandon on Novem-
ber 6:—
"The real issue to-day is the big interests versus the
classes that represent the masses of the people," stated the
Hon. Mackenzie King. The parties against the present gov-
ernment are not united, and this is the strength of the present
party in power. "I have no opposition to any group in Can-
ada, but I come here to state that I am standing for a party of
progress, which will influence and add strength to any body
for progress. The time has come when those standing for
progress .should co-operate, so that when the fight does come
we can stand united against the big intei-ests."
"The greatest problem to-day is the cost of living, and
there is not a person in Canada to-day who is not affected by
it," stated the speaker. The duty of the government is to
seek some solution for the high cost of living, but up until the
present time they have done nothing. Three great policies
have been outlined in the Liberal platform, and briefly Mr.
King outlined them as (1) retrenchment of public expendi-
tures, (2) a revision of the tariff downward, and (.3) the elim-
ination of profiteering.
Dealing with the first policy, the opposition leader told
of the immense amount of money Canada had to pay each
year as interest on its national debt, of the huge expenditures
that arose out of the war and have to be met, and the expense
of carrying on the government of the country. The only solu-
tion, said Mr. King, i?o a more economical method of handling
the finances of the country is in a complete change of admin-
istration. Until we get a Parliament representative of the
people we will never get anywhere.
With regard to the tariff, the speaker said that the Lib-
erals had laid down their policy in their platform of last Aug-
ust, and by that policy the Liberal party would stand or fall.
He then read the tariff policy of the party showing the revi-
sion to be sought, and said that it was a tariff in the interests
of both the producers and the consumers. The purpose of the
custom duties was for the purpose of revenue only, and the
Liberals naturally seek freer trade. The point is that the
necessities of life should be as free as possible so that the
masses of the people can get as great quantities as they want.
The cost of living can only be reduced by increased production.
The war has destroyed wealth, and now we must make more
wealth.
Hon. T. A. Crerar, leader of the Progressive party in Can-
ada, in a speech at Prince Albert, Sask., on November 4: — •
As to the tariff", Mr. Crerar urged more attention to the
development of the basic industries rather than artificial stim-
ulation for industries asking protection. The tariff commis-
sion had gathered a mass of contradictory evidence, and the
Progressive leader advocated that any industry needing pro-
tection should place its claims in the open before a committee
of the House of Commons. He cited Great Britain's recovery
after the war as an instance of what free trade had done, as
compared with such protectionist countries as Germany,
France and Italy.
Canada had many problems before the war, said Mr.
Crerar, but the war had magnified and intensified these prob-
lems. For instance, before the war the public debt was $333,-
000,000 — now it is $2,2.50,000,000. Yet nobody in Canada be-
grudged that increase. There was also the geat problem of
taxation. History showed that it was not the amount of
taxation, but the manner of imposing taxation, which counted. -
Some criticism had been directed against the farmers' or-
ganization. The declarations of political principles laid down
by the farmers before the people were not the product of a few
men, but wei-e produced by great conventions in many prov-
inces, and in succeeding years. Yet this platform was criti-
cized as a class policy. This criticism came from those who
were interested in keeping the common people down to the
level they had been heretofore.
THE MONETARY TIMES
Volume 66
Canadian
Government and
Mnnicipal
Bonds
Victory
Bonds
Sold
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Winnipeg Toronto London, Eng.
January 7, 1921
THE MONETARY TIMES
25
Provincial Premiers Write of 1920 and Outlook
Opinions .Expressed are Optimistic of Recovery from Present Period of Depression —
Turning Point Has Been Safely Passed — Review of Year's Developments in the Provinces
NOVA SCOTIA
By
H
anorable
4.
MURRAY
P
remier.
alllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll
No other portion of Canada is more prosperous to-day
than the Province of Nova Scotia. The farmers were
blest during 1920 with bountiful crops, which were harvested
in excellent condition. The apple production was exceeded
by only two other apple crops in the history of the Nova
Scotia fruit industry, and the output of creamery butter shows
a gratifying increase. While prices have declined in sym-
pathy with world-wide conditions, the end of the year finds
our farmers with a balance on the right side of the ledger.
The output of coal during the past year reached approxi-
mately 5,700,000 tons, as comp&red with 5,004,757 tons in
1919, an increase of about 14 per cent. Sales amounted to
5,082,230 tons, as against 4,459,647 tons in the previous year,
an increase cjlso of very nearly 14 per cent. The coal in-
dustry of Nova Scotia is now on a basis that will support a
largely increased production as soon as conditions will war-
rant such development.
In the lumber industry weather conditions were ideal for
operations. The total production was 350 million feet, which
is valued at $12,250,000. The cut exceeded normal by about
50 million feet. Of the total cut a-bout 90 per cent, has been
sold, and about 60 per cent, shipped, leaving about 40 per
cent, on hand. It is estimated that of the supplies disposed
of, 25 per cent, were consumed locally, 10 per cent, went to
Upper Canada, 30 per cent, to the United States, 25 per cent,
to the United Kingdom, and the remainder to the West
Indies, South America and Newfoundland.
The deep-sea fishing fleets had a- successful year, while
the production of the shore fisheries, with the exception of
lobsters, was under the average. All the branches of the in-
dustry— fresh, salt and smoked — have been carried on in
about the same volume as during the preceding year, but at
a lower range of prices. The industry, in general, is suffer-
ing from a forced curtailment of buying due to the financial
situation. It is confidently expected, however, that conditions
will improve in this industry as soon as the accumulated
stocks on hand will be cleared off.
To sum up, owing to the flourishing condition of two of
our leading industries, farming and coal mining, and the very
fair condition of the steel and other industries, it may be
truthfully stated that Nova- Scotia has again earned the right
to be classed among those countries where a certain buoyancy
of trade is maintained by virtue of the variety of its re-
giiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiijiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiyiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitt^
NEW BRUNSWICK
Honorable
W. E FOSTER.
iiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
illlllllllllllllllillllllllilllllllllllllllllllllllllllllllllllllllllllllllllH
NEW BRUNSWICK has not been simply marking time in
1920. All classes of people have realized the import-
ance of gaining a fresh and firm foothold on business and
trade after the uncertainties that prevailed during and imme-
diately after the war period.
The greatest industry, lumbering, was followed wi.th
great energy. Enhanced prices in the later months of 1919
and the spring of 1920 resulted in increased production of
lumber and pulpwood. Wages were high and costs advanced
proportionately. Falling prices in later months have given
warnings which are being wisely heeded.
Employment is not so plentiful as it was. The cessation
of road work, in which the Province has spent liberally, has
diverted such labor to other channels. Manufacturing indus-
tries are slacking up and further diversion will be necessary.
Agricultural production was satisfactory and the prices
fairly good. Lower prices mean greater efforts on the part
of those engaged in this industry, and this, no doubt, will be
as true in the future as in the past.
In spite of these drawbacks, due to the falling prices the
world over and reconstruction efforts, there is a feeling of
great confidence in New Brunswick. The Government, of
which I am the Prime Minister, is aiding the development
of the water powers and assisting wherever possible to ad-
vance the interest and prosperity of the people. Teachers'
salaries have advanced and the profession is encouraged to
carry on with vigor and efficiency. Our bonds are selling as
high as those of any Province in Canada. Improvement in
the people's means of transportation, the highways, has been
very great. We are entering 1921 with courage, hope and
faith in our people and Province, confident that progress and
prosperity awart our united efforts.
THE MONETARY TIMES
Volume 66
gllllllllllllllllilllllllllllllllllllllllllHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIllllllllllllllllllllllllllllllllllllllllllllllllW
BRITISH COLUMBIA
g-iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
THOUGH the wheels of some of the principal industries
have slackened within the past month or two, a com-
prehensive view shows that the yea^r to date has been on the
whole one of prosperity for British Columbia.
The great lumbering industry promises a good average
for the vear, though at present trade is quiet. Logs scaled
during the first nine months of 1920 totalled 1,400,000,000
feet as against 1,438,000,000 for the whole of 1919. The
domestic lumber market is at present very quiet, largely
owing to the advance in freight rates of September 15th last,
which discriminated against Coast shippers to the east. The
advance, being on a percentage basis, favored the southern
pine operators with their shorter haul to the eastern market.
Export shipments overseas for the year show some increase,
with 88,380,299 board feet for the first nine months as
against 72,310,130 for the same period last year. Financial
conditions in Australia, China and Japan have retarded
recent business to those points.
The pulp and paper trade continues to gain steadily, and
last year's total output of 123,000 tons of newsprint should
be surpassed. The demand for pulp and paper, and the de-
pletion of eastern pulp wood stands has turned the attention
of eastern manufacturers to the timber stands and water
powers of British Columbia. Several new pulp companies
have been incorporated and will be operating as soon as
plants can be established.
The mining industry shows satisfactory returns, though
there is naturally considerable falling off after the abnormal
activity of the war period. Such developments, however, as
that of the Canada Copper Company near Princeton, and
others in the Portland Canal district, promise well for the
future.
In the fisheries the province still holds a premier place
in the Dominion. Last year the value of the British Colum-
bia catch was estimated at 4.5 per cent, of that of the whole
of Canada. This year, owing to the lower prices for the in-
ferior grades of salmon, it will probably be smaller.
The government has been overhauling and rehabilitating
existing irrigation systems, and in the Southern Okanagan
valley is inaugurating a new system which should bring
about 7,000 acres under cultivation. All this should add ma-
terially to the future productiveness of the province.
A survey of the industries of the province as a whole
shows satisfactory progress for the present year, and
promises well for the future. British Columbia does not
carry all its eggs in one basket or all its wealth in one valley,
and "out of its varied industries of lumbering, mining, farm-
ing and fishing, is gradually accumulating a basis of sub-
stantial wealth.
■aillllllilllllllllllilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllMIIIIIIIIIIIII^
SASKATCHEWAN
Honorable
W. M. MARTIN,
Premier
lllllllllllllllllllllllllllllllllllllllllllllllilllllllllllillllllllllllllllllllllllllllllllllllllllllBlllllllllllllllllllllllllli
IT is a great pleasui-e to be called upon to write about
Saskatchewan at this particular moment, in view of the
fact that, notwithstanding post-war conditions and disap-
pointing crops, we have never been more justified in looking
forward vi'ith confidence to Ss'Skatchewan's future, and in
this remark I am sure I can include the whole prairie country.
The budget recently presented to the Legislature by my
able colleague, Mr. C. A. Dunning, showed an excess of re-
ceipts over expenditure of ,$1,934,62.5, and a net cash surplus
of $1,801,095. In view of this surplus the Supplementary
Revenue Tax has been abolished. This tax was first levied
thirteen years ago, and consisted of a levy of one cent per
acre, one of its objects being to compel speculating owners
of unused lands to contribute to the educational needs of the
country. Since then all taxes based on acreage alone have
been replaced by an assessment on value. The last remaining
vestige of acreage taxation was the Supplementary Tax. Of
the proceeds of this tax 80 per cent, went to rural schools,
5 per cent, to the Agricultural College, 5 per cent, to the Sas-
katchewan University and 10 per cent, to secondary educa-
tion.
The public debt of the Province is on a satisfactory
footing. In a new Province the initial development expenses
were necessarily heavy. Large expenditures were absolutely
necessary in public buildings, roads and bridges, and for the
due support of education. The gross debt stands at $41,-
549,480. It is made up of two different kinds of indebtedness,
a dead-weight debt which has to be paid off from the revenue
derived from taxation, and a debt incurred for revenue-pro-
ducing utilities. This latter class of indebtedness takes care
of itself, the revenue-producing utilities paying their own
way, and fi-om the point of view of being a burden to the
State, it may be ruled out of consideration. The dead-weight
debt of the Province stood &t $19,416,237, a relatively small
amount. Without going into fui-ther detail I think I have
said sufficient to indicate that the financial position of the
Province is satisfactory; but I may add one other point which
was brought out in Mr. Dunning's budget speech, and that is
that Saskatchewan can borrow money as advantageously as
Ontario, the wealthiest Province in Canada. There is a
third liability, but it is a contingent one, of $28,582,011, re-
sulting from the Government guaranteeing C.N.R. and G.T.P.
branch line bonds, but there is little likelihood of the Pro-
vince being called upon to make the contingency good. There
are some other contingent lia^bilities on account of the Sas-
katchewan co-operative creameries, municipal hail insurance,
seed grain and drainage schemes, relief extended under
special circumstances to municipalities, and so on, but these
are not sufficient to affect the general situation very much,
as the prospects or repayment &re excellent.
January 7, 1921
THE MONETARY TIMES
MANITOBA
ALBERTA
By
Honorable
C. STEWART,
Premier
riiiiiiiiiiiiiiiiiiiiiiiwiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiinniiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
IN its agricultural industry Manitoba has "had still an-
other very satisfactory year, the yield of wheat over the
whole province being above the average of the past ten
years, while the coarser grains were proportionately good.
Isol&ted districts suffered somewhat from summer drought,
but on the whole, the year 1920 gives renewed confii-mation
to the declaration that "Manitoba is the Sure Crop Pro-
vince." Many years have passed since this province has had
anything in the nature of a serious crop failure, and the
possibility of such a visitation is steadily growing less as our
farmers continue to adopt proved methods in diversified
agriculture. At the moment our farmers are suffering from
the fact that while the cost of production was at its peak
during the year, the price of their product has been among
the first to be affected in the readjustment that is now well
under way. This, however, does not a-ffect the fact that
Manitoba farms are just as productive as ever, and that
Manitoba farmers are constantly improving their methods.
Conditions in the industries based on other natural re-
sources of the province have been normal. The a^nnual out-
put of our lake and river fisheries stimulated during the
war by the scarcity and high prices of beef, has remained
above pre-war figures, and will, undoubtedly, hold its present
place. Opening of transportation to the valuable fishing
grounds in our northern lakes will further increase the an-
nual yield. Lumbering, never a very large industry in Mani-
toba, shows a satisfactory increase, while our large tracts
of pulpwood remain as yet untouched; they await the open-
ing up of our far northern stretches with their natural riches
such as can only be guessed until they have been properly
prospected. Mining in northern Manitoba is now apparently
on the very eve of the long-expected development.
During the past five years there has been a large ex-
penditure for good roads, extension of the telephone service
and completion of the new legislative buildings of the pro-
vince. By careful management the financial position of the
province has been strengthened, and the credit of the pro-
vince has been ret&ined at high levels. The government has
safeguarded zealously, not alone the credit of the province,
but the credit of the municipalities and the school districts
as well, with results that speak for themselves. During 1920
thei-e was established the Provincial Savings Institution, the
people of the province being invited to deposit their savings
with the government. A beginning has thus been made
towards securing eventually within the bounds of the province
itself the money for ca^pital requirements. In this connection
it must be noted that the people of Manitoba feel that the
justification of the claim of the province for control of its
minerals, timber, water powers, fishei-ies and other natural
resources should be recognized and established.
SEEDING opened later than usual, but under very favor-
able conditions. During the fall of 1919 and the winter
and spring of 1920, a generous supply of moisture saturated
the soil, producing excellent seeding conditions. As usuaJ,
seeding began first in Southern Alberta and went forward
more rapidly than in the north, where heavy rains in the last
half of May delayed seeding to a point that made farmers
anxious for a time. The lateness of the season, however, wa-s
soon compensated for by a rapid growth. The seed quickly
rooted and grew with great luxuriance, owing to steady heat
and moisture throughout the summer.
One of the most satisfactory features of the season was
the phenomenal growth of grass. The scai'city of feed in a
large portion of the province during the winter induced the
farmers who had large supplies of feed (especially in Central
and Northern Alberta) to sell below their normal needs.
Coupled with the lateness of the spring, this feature in the
general situation caused our farmers many anxious days, but
with the beginning of the grf'ss the country quickly recov-
ered and the feed famine was forgotten in a few weeks. The
universal expression of satisfaction by all livestock men was
"How Alberta can come back."
The scarcity of feed and the cost of tractor supplies in-
creased the cost of seeding operations and limited the acreage
of whe&t. Successful efforts were made, however, to in-
crease the acreage of feed grains. The favorable ripening
season which continued into October resulted in a most
bountiful harvest of oats and barley. It is regrettable, how-
ever, that the farmer has not benefited by the increased pro-
duction. By the time his crop was ready for market, prices
had so declined that he has had an inadequate reward for
a year of anxious and costly toil. He is left wondering why
the price of his commodities has so rapidly declined while
those he is forced to buy (though they contain many raw
materials produced on the farm) still cling to unapproach-
able levels.
Such a situation is not very encouraging to increased
production for the coming year. Alberta farmers, however,
are not dispirited. More fall plowing has been done and
more land is ready for seeding next spring than for several
years p&st. As an evidence of the unbreakable faith Alberta
farmers put in their province, it is refreshing to cite the
pledges of the farmers of the Lethbridge Northern Irriga-
tion District to bond their land for irrigation works by a
vote of 278 to 16.
The year has been a successful one in the coal mining
industry. The market for Alberta coal is widening and in-
creasing. Shipments 'are going east to Ontario points and
west to the Pacific coast. Production up to the end of No-
vember was 6,750,000 tons and it is estimated production will
pass the 7,000,000 mark by the end of the year. It is the
largest on record.
The ordinary statistics of bank clearings, post office and
customs returns and building returns indicate a satisfactory
THE MONETARY TIMES
Volume 66
increase except in tlie building returns. In the two principal
cities buildings erected this year total $6,000,000. Still hous-
ing is scarce. The liigh building costs and the fear that
lurks in the minds of those who formerly invested in home
building property, that city taxes will wipe out all profits
no matter how high rents go, is causing a slump in the num-
ber of houses available for a steadily increasing population.
On the other hand, there are evidences of increased interest
on the pa-rt of investors in the natural resources of the
country. The number of application to the Provincial Utili-
ties' Commission doubled in 1920 over the number in 1919.
A number of joint stock companies that were quiescent dur-
ing the war are now applying to be placed on the register.
Many new companies are being organized and 400 certifi-
cates of incoi-poration have been issued during the year.
There has been an increase in the commercial and manu-
facturing industries in the past year. Many new firms have
been added to the business directories of our cities. There
have been extensions of plant and improvements in equipment
of many of the old-established houses. It is a sign the pro-
vince is becoming more self-sustaining every year. Condi-
tions seem to be moving to a steady readjustment from those
prevailing immediately after the close of the war. There is
no doubt costs are falling, that there is a growing surplus of
lator that is leading to the survival of the fittest on the job.
Business men and employers seem to be anxious to get back
to a basis of steadier and better production, and hope by re-
ducing the cost of production to be able to promote increased
consumption by all classes, instead of by those who were
fortunate during the war.
llllllllllllllllllllllllllllllllllllllllllllllllllllllHllllllllllllllllllllllllllllillllllllllllllllillilllllllllllMIIIIIIIIIIMII"^
QUEBEC
By
Honorable
L.A.TASCHEREAU
Premier
WHILE moving in an orderly and progressive way in
every sphere of human activity, the people of the pro-
vince of Quebec have, in 1920, devoted their attention chiefly
to agricultural development. Realizing that the world-short-
age in food is threatening to bring about a fateful crisis and
has become the most vital after-war problem, members of
the government as well as our leading professional and busi-
ness men were all agreed that everything must be done to
help and increase agricultural production. Our farmers
proved equal to the task laid upon them, and set about to
make of Canada a self-contained nation as to food and
supply some of the foodstuffs that must be provided for the
millions dependent on the land.
The tiller of the soil was considered one of the pivots
upon which the result of the great war turned; he appears
to-day to be the axis upon which the destiny of European
and American nations revolves. Since there is no larger
sphere of duty to our country and to the world, the province
of Quebec may well take pride in the patriotic action of the
farming communities.
Our province had in 1920 over 175,000 farmers at work,
and the area under cultivation was considerably increased.
In the remoter districts of Abitibi and Lake St. John hardy
pioneers kept on gaining ground and laid under the plough
thousands of acres of productive soil, which yielded in many
places forty bushels of oats to the acre. The value of our
crops this year was $327,063,000 as compared with $307,994,-
280 ill 1919. The average yield of cereals per acre has been
far superior to that of the previous year, and largely com-
pensated for the small decrease in the yield of hay and
corn caused by the drought at the beginning of the summer.
Although the Quebec farmer is more prosperous than
he ever was, he remains the man of simple life, of frugal
tastes, fond of his home, and still puts his pride in raising a
large family. He is a healthy type of Canadian. In follow-
ing up the best methods of agriculture that h&ve been evolved,
he is developing into a most effective worker of the land.
Thanks to her forest wealth, our province was also able
during this year to answer a most pressing want. Our pulp
and paper mills worked at their full capacity and many had
to be enlarged. Statistics are not yet available to show the
number of tons of pulp produced, but 1,000,000 tons should
be a conservative figure. As to the total value of all the
raw forest products for the year, it will amount to over
$45,000,000.
In the first six months of this year, our province ex-
ported 778,246 cords of pulpwood valued at $9,556,255, and
from April to September for $103,949,481 worth of pulp and
paper.
In order to assist the pulp mills and other mills, and
to create new thriving manufacturing towns such as
Grand'Mere and Shawinigan Falls, the government is fol-
lowing up its policy of developing the most useful water
powers. A storage dam is being built on St. Anne River, and
surveys are being made for developments on the Nottaway
and Megiskan Rivers, and the Kenogami and St. John Lakes.
Our mineral production, which increased during the
last ten years from $7,000,000 to $10,000,000, is steadily en-
hancing. Important discoveries of gold and molybdenite were
recently made in the Abitibi which promise to make of this
new region an important mining district.
While generous appropriations were made in favor of
technical schools, and the erection of a score of rural
academies was planned, this year has been especially de-
voted to the cause of higher education. The government has
granted $3,000,000 to be shared equally between McGill,
Laval and Montreal Universities, and it has besides estab-
lished many new European scholarships. Four young forestry
engineers left this last month for a special course abroad.
As to our financial situation, the rule established in re-
cent years still prevails and our budget shows a surplus
which gradually reduces our debt now standing at a little
less than $12 per capita. Our debentures are consequently
much sought after, as are all our municipal and corpora-
tion bonds. If banking may be considered a true barometer
of provincial conditions, to tell the tale of our prosperity we
need only refer to the great increase of deposits in 1920 and
the opening of many new branches throughout our province
by our leading banks.
While they had to bear the high cost of raw material
and the sudden slump in retail prices, our manufacturers,
however, have had a prosperous year.
Among other industries, shipbuilding is making great
strides in our province, and Montreal is claiming interna-
tional attention.
The sanity and level-headedness of our laboring cla-ss
saved us from strikes and bolshevist tendencies such as have
more or less handicapped other countries' industrial en-
deavors. This again should help solve the unemployment
problem. With prices falling our laborers will understand
that wages must follow suit, and fewer men and women will
then have to be released.
L. A. TASCHEREAU.
January 7, 1921
T'HE MONETARY TIMES
Provincial Legislation of the Year 1920
Summary of the More Important Legislation Placed on the Statute Books
During the Past Year — New Ontario Government Failed in Ecomony But
Succeeded in Politics— Tendency to Raise Taxes on Accumulated Wealth is Evident
From Increases m Succession Duties — Higher Taxes on Financial Institutions
PROVINCIAL legislation affecting finance and industry dur-
ing the past year is of considerable importance. The rapid
expansion of the past few years required some changes of this
kind. The tendency towards increased public expenditures
made increased taxes also necessary. The new legislation of
the year has a strongly soc"al flavor, minimum wage, housing,
mothers' pension and similar laws being very prominent. An
effort was made to raise the money for these purposes by
higher succession duties, on commercial and financial institu-
tions, and on other forms of accumulated wealth. Experi-
ments are also being made in the way of provincial assistance
to new industries.
The time at which the legislatures met is indicated by
the following dates: —
Opened Closed
British Columbia Feb. 1
Alberta Feb. 15 April 10
Saskatchewan Nov. 27, 1919 Feb. 7
Manitoba
Ontario Mar. 9 May 28
Quebec Dec. 4, 1919 Feb. 14
Nova Scotia Mar. 4
New Brunswick Mar. 11 April 24
Prince Edwai'd Island
Yukon April 28
Ontario Has Big Record
The Ontario session was of outstanding interest this year,
as at the elections in the fall of 1919 the farmers had been
returned as the strongest party, although they had to form
a coalition with the small labor group to secure a majority in
the house. The new party had been elected on a platform of
economy, but like other new governments, it has found it im-
possible to carry out in power what it had advocated in oppo-
sition.
The large number of 260 acts were passed by the govern-
ment house. The estimates were higher than ever before, and.
new taxes were as a result necessary. These took the form of
increases in succession duties, in taxes on corporations, in
taxes on race tracks, and on transfers of stock. The succes-
sion duties in the province now range from 15 to 60 per cent.,
which is exceptionally high. The taxes on banks were prac-
tically doubled, and those on loan companies substantially
raised. The tax on race tracks is now $7,500 per day for
mile tracks and ?2,500 per day on half-mile tracks.
This increase in revenue was for additional expenditures
for ordinary provincial purposes, including a good roads pro-
gramme, of which the farmers were strongly in favor, and a
mothers' pension act, which was passed largely through the
efforts of the labor members. Provision was also made for
the superannuation of civil servants. The influence of the
labor section is also shown by the minimum wage acts and the
amendment increasing the rate of workmen's compensation.
An extension of the Temiskaming and Northern Ontario
Railway to James Bay was authorized, although construction
will not be commenced for some time. The two big commis-
sions in the province, which are the Hydro-Electric and the T.
and N. O., have received strong support from the now govern-
ment, although it has been keenly criticized for not authoriz-
ing the former to purchase the radialfrailways of the Domin-
ion government without making an investigation first.
Another important bill passed at the last session of the
Ontario house was that providing for local option in municipal
taxation, by which improvements up to a certain amount may
be exempted from taxation. In recognition of the changed
financial conditions it was also enacted that provincial bonds
might in future be issued bearing interest at more than 6 per
cent.
The Quebec legislature dealt with the city of Montreal's
charter, the housmg question, the provincial public service
commission, grants to railways, McGill University's finances,
and a number of other financial questions. The amendment
to Montreal's charter took the form of an act providing that
there should be no election at the end of 1920, but that in-
stead a commission should be appointed to frame a new form
of government for the city. This commission was to be com-
posed of sixteen members, representing various interests in
the city. It is still working out a new plan of government for
the city.
The new housing act dropped provincial control of hous-
ing, under an enactment of the 1919 legislature, but provided
that the government should still make advances to munici-
polities for housing purposes, accepting as security their 5 per
cent, bonds at par. Provision was made for flats as well as
individual dwellings by making the loans applicable to tene-
ments of three flats erected at a total cost of $13,500.
The name of the Quebec Public Utilities Commission was
changed to the "Quebec Public Service Commission," and some
important changes were made in its powers. The sessional
indemnities of members of the legislature were increased from
$1,500 to $2,000. A new companies act was passed to take
the place of the existing legislation regarding the incorpora-
tion and management of companies in the province. The
"General Accountants' Association in the Province of Quebec"
was incorporated, as was also a million-dollar company called
the "Guarantee Title Bond and Trust Corporation of Canada."
Amendments were also made to the charters of "La Prevoy-
ance" Assurance Company, and of the Industrial Life Insur-
ance Company.
Saskatchewan Legislation
Legislation of the Saskatchewan government included a
new seed grain act, amendments to the towTi act and to the
rural municipality act, a new village act, the Saskatchewan
Loans Act, a Sale of Shares Act, and an Attachment of Debts
Act. A new and increased scale of succession duties was also
put in force. An advisory board was created to assist the
wild lands tax commissioners. The status of the provincial
bureau of labor was enlarged to that of a provincial bureau of
labor and industry, with power to investigate the possibilities
for new industries and for extension of existing ones. Sev-
eral measures in the way of development, affecting irrigation
and water supply, were passed.
The Saskatchewan Loans Act authorized the borrowing of
money in advance of the fiscal year, in order to take advan-
tage of favorable financial conditions. The provincial mora-
torium was extended to February 1, 1921. Provision was
made for financial assistance to co-operative enterprises, such
as the Saskatchewan Co-operative Elevator Company and the
Saskatchewan Creameries, Ltd.
Other Provincial Legislation
The Manitoba legislature took up the question of assist-
ing industry in the province, railway and other developments
in the north, and the extension of the rural credits system in
the province, which is now to be financed with the assistance
of a Manitoba savings bank. Hail insurance also received at-
tention and some changes were made in the law.
British Columbia authorized several new loans, and passed
acts relating to the Pacific Great Eastern and several other
railways. Efforts were also made to enable the municipalities
to raise more revenue. A mother's pensions act was one of
several pieces of social legislation placed on the statute books
of the province.
The Yukon legislature at its 1920 session passed eleven
acts, the most important being one prohibiting the sale of in-
toxicants for beverage purposes.
THE MONETARY TIMES
Volume 66
CANADIAN BOOKS OF THE YEAH
Scarcely Any Deal Directly With Finance or Industry —
Canadian Trade Index a I'seful Directory —
Many Books of Legal Cliaracter
OUTSIDE of law books having a close relation to industry,
there were scarcely any books published during 1920 on
Canadian economic subjects. In 1919, on the other hiand, agri-
culture, the raih'oads, and several other branches, received con-
siderable attention.
Probably the book of most importance to Canad'an eco-
nomic life was the Canadian Trade Index for 1920-21, which
is really not a book at all, but rather a directory (Canadian
Manufacturers' Association, Toronto, 832 pages, $6). One of
the valuable services rendered to manufacturers of Canada by
the Canadian Manufacturers' Association is the publication of
this complete reference list. The object of the index is to
provide all buyers of Canadian manufactured goods, in what-
ever country they may be, with a dependable list of the arti-
cles made in Canada and the names of the manufacturers
making them. In addition to the list, arranged alphabetically
under the names of the products, this edition introduces two
new features: A continuous alphabetical list of all manufac-
turers, whether members of the association or not; and a
translation section in French and Spanish.
Every year sees a considerable number of law books pub-
lished in Canada, some of them being closely related to eco-
nomic affairs. About the end of 1919 there was one published
which is of outstanding value. This was "Dominion Company
Lay," by Thomas Mulvey (Ontario Publishing Co., Ltd., Tor-
onto, 889 pages, with index, .$12.50). The author, who is
under-secretary of state for Canada, and an authority on
company law in this country, sets foi-th thoroughly the law as
it affects companies incorporated under federal charter. His
synopsis of the Dominion Companies Act, and of the practice
thereunder, which occupies seventy-two pages of the book,
will be particularly instructive to those not conversant with
the subject, and will readily be understood by business men
without legal training. The text of the Dominion Companies
Act is set forth in full, and annotated, as are also the provi-
sions relating to loan companies, British loan companies, and
British and foreign mining companies. The Dominion Wind-
ing-up Act is treated in the same way, and then the licensing
and taxation legislation in the various provinces is taken up,
in so far as it affects companies with Dominion charters.
Finally, the Income Tax Act and the War Profits Tax Act are
given, and a list of forms to be used by companies. The
book will be very useful, not only to corporation lawyers, but
also to the officers of any company which operates under
Dominion legislation.
Another was "Executors' Accounts," by C. H. Widdifield,
judge of the Surrogate Court of Grey County, Ontario (The
Carswell Co., Toronto, 531 pages, with index, $6.50). This is
the second edition of this book, but since the first was pub-
lished considerable legislation has been passed altering the
practice and procedure of the courts. Trust company officers
will find the book exceedingly valuable, and a good index
makes it convenient for reference.
Fraser's "Company Forms and Precedents" contains ovev
1,000 forms. Those relating to applications for registration
or license under the Extra-Provincial Corporations Acts of
the different provinces and to departmental applications are
based on precedents which have been approved and accepted.
A selection only of statutory and departmental forms has
been included. These are subject to change from time to
time, and are always available on application to the proper
Dominion or provincial authorities (The Carswell Co., Ltd.,
Toi-onto, 699 pages, with index, $10^
Book on Railway Law
The passing of a new railway act at the 1919 session of
parliament gave this country a new railway law, no less than
sixteen previous acts being repealed, either in whole or in
part. As a result of this change, "Concordance of the Rail-
way Act," by A. H. O'Brien, M.A., has been published (Can-
ada Law Book Co., Toronto, 184 pages, $6). This volume is a
new edition of "Currie's Concordance," and gives, in addition
to the text and a thorough index of the Railway Act, 1919, an
index to all acts of parliament affecting railways, an account
of the Board of Railway Commissioners and an index to its
regulations and forms, and considerable other useful informa-
tion.
A similar publication in the field of company finance
was "Concordance of the Companies Act," by Leslie G. Bell.
(Carswell Co., Toronto, 181 pages with index; $5.) This
book covers the Dominion Companies Act, the "Business Pro-
fits War Tax Act, the Income War Tax Act, and provincial
legislation applicable to Dominion companies. The increas-
ing number of incorporations and the growth and import-
ance of legislation governing such bodies make it a very
useful work. The "Office Consolidation of the Companies
Act," which comprises 88 pages of the book, is a thorough
index to all subjects dealt with by the act.
Manual on the Tarifif
Another useful publication was "Canadian Customs and
Excise Tariffs," by M. P. McGoldrick. (Chas. S. J. Phillips,
20 St. Nicholas St., Montreal. 504 pages; $2.50.) This
handbook shows the tariff on all classes of goods alphabeti-
cally arranged, and includes the Revenue Act of 1920. It
also shows thei articles subject to luxury tax and those
exempt from sales tax, and the stamp tax legislation. Other
features are a list of warehousing ports, outports, etc., in
the Dominion; the trade conventions with Belgium, Nether-
lands, Japan, Italy and British West Indies; extracts from
the Customs Act, specimen forms of customs, documents,
foreign weights and measures with their Canadian equival-
ents; tables showing Canadian customs value of foreign cur-
rencies; conversion tables of sterling and francs into Cana-
dian money; Montreal wharfage tariff and list of principal
customs brokers in Canada.
Currency Exchange Tables
A book entitled "Currency Exchange Tables" (G. B.
Sneli, CO Bank of Montreal, Montreal, $7.50) has been wel-
comed by the business houses of Canada as a timely aid for
calculating the exchange on New York funds. The table
gives the exchange on all amounts from $100 to $10,000,
at all rates from %i to 1 per cent., advancing by sixty-
fourths and from 1%2 to 10 per cent., advancing by five
thirty-seconds. The exchange on larger or smaller amounts
can be arrived at by simply moving the decimal point to the
or left as required. The second edition, just issued, contains
in addition a table showing the comparison between the
premium on United States funds in Canada and the discount
on Canadian funds in the United States.
"Daylight on the Money and Banking Questions," by
R. C. Owens (Western Veteran Publishing Co., Edmonton,
Alta. 47 pages; 25 cents), was a pamphlet making some
radical proposals. The author believes that wealth is pro-
duced by labor alone. "It is a recognized fundamental fact
of political economy that labor produces all wealth," he says.
He accordingly deplores the accumulation of wealth through
interest, and urges radical changes in the money and bank-
ing system. His chief proposals are: That the government
issue sufficient legal tender money for all needs, thereby
abolishing credit and interest, and that banking be conducted
by the government at cost; that a tax on land values be
imposed; that the tariff be abolished; that natural resources
be the property of the people; that public utilities be operated
at cost; that six hours be a legal day's work; that each per-
son over 55 years of age receive a pension; and that an in-
come tax of from 50 per cent, to 100 per cent, be levied on
all incomes from $2,000 to $1,000,000, until the public debt
is paid.
General interest in the application of the Bankruptcy
Act has led to the commencement of a special publication,
to deal carefully and exhaustively with the development of
the law under the act. The series is known as the Canadian
Bankruptcy Reports, Annotated, published by Burroughs and
Co., Ltd., of Calgary, Alta., and handled in eastern Canada
by their eastern office. Burroughs and Co. (Eastern), Ltd.,
Witness Building, Montreal, Que.
BANKING
Jamiary 7, igii
THE MONETARY TIMES
Page .;j
32
THE MONETARY TIMES
Volume Ofi
BANK OF MONTREAL
Established over 100 years
Capital Paid Up
Rest
Undivided Profits
Total Assets
$22,000,000
22,000,000
1,251,850
560,150,812
Board of Directors :
SIR VINCENT MEREDITH. Bart.
SIR CHARLES GORDON. G.B.E. -
R. B. Angus, Esq.
LordShaughnessy, K.C.V.O
C. R. Hosmer, Esq.
H. R. Drummond, Esq.
D. Forbes Angus, Esq.
Wm. McMaster, Esq.
Vi,
iJcnl
iJenI
Lt.-Col. Molson.C.MCM.C
Harold Kennedy, Esq.
H. W. Bcauclerk, Esq.
G. B. Eraser, Esq.
Colonel Henry Cockshutt
J. H. Ashdown, Esq.
E. W. Beatty, Esq., K.C.
SIR FREDERICK WILLIAMS-TAYLOR, General Manager
A Complete Banking Service.
With branches in every part of the
Dominion and Newfoundland, with offices
in the principal financial centres elsewhere,
and with correspondents in all parts of the
world, the Bank of Montreal offers unex-
celled facilities for the transaction of every
class of domestic and foreign banking.
Direct Jeire service helTX)een Montreal, Toronto, Winnipeg,
V ancouver, Nen> Yorl^, Chicago anJ San Francisco.
A Savings Department at each Canadian Branch.
Interest at current rates
PRINCIPAL BRANCHES OUTSIDE OF CANADA:
LONDON, Eng. :
47 Threadneedle Street, E.C.
G. C. Cassels, Manager.
Suh-Agency — 9 Waterloo Place,
Pall Mall, S.W.
PARIS, France :
Bank of Montreal (France), 17
Place Vendome.
NEW YORK AGENCY : 64 Wall St.
R. Y. Hebden. W. A. Bog, W. T.
Oliver, E. P. Hungerford, Agents.
CHICAGO : 27-29 South La Salle St.
SPOKANE, Washington
SAN FRANCISCO: British-American
Bank (owned and controlled by
the Bank of Montreal).
MEXICO: City of Mexico.
NEWFOUNDLAND: St. John's. Car-
bonear. Curling. Ferryland, Gaul-
tois, Grand Falls. Greenspond
and St. George's.
WEST INDIES. BRITISH GUIANA
and WEST AFRICA: The Col-
onial Bank (in which an interest is
owned by the Bank of Montreal).
January 7, 1921
THE MONETARY TIMES
Review of Canadian Banking in 1920
Tightening of Credit Was Most Prominent Feature— Failure of Deposits to Respond
to Growtli of Loans— Fewer Branches Opened than in 1919— Substantial Addition
' to Paid-up Capital and Reserves— Effect of Depreciated Currency on Banking
By A. B. BARKER.
DURING the past year the banks have been reluctant to
increase their commitments. The business of the coun-
try has been conducted for several years under a condition
of steadily rising prices, necessitating the use of an increas-
ing amount of credit to handle stocks of goods. These high
prices have, it is believed, reached their peak, and from now
on should recede. The executives of the banks at the various
annual meetings have emphasized the necessity for great
caution in view of the disturbed financial and political out-
look everj'^vhere. Throughout the year credit has been re-
stricted, and loans for purposes other than commercial have
been increasingly difficult to obtain. This was particularly
noticeable in the early fall.
Even in normal times, owing to the general preparations
for financing the western crops movement, the banks find it
necessary to curtail anything in the nature of speculative
advances, but this season the movement has been more pro-
nounced. Formerly relief was obtainable from London in
anticipation of grain exports, but this year, owing to the fall
in sterling, the grain is not likely to go forward in the same
quantities as before. This will throw an additional load on
home funds, even with wheat at reduced prices. There will,
in consequence, be heavy demands on the banks from western
customers to enable them to carry the crop until it can be
sold to better advantage.
This is a matter of vital interest to the rest of Canada,
as unless the farmers can obtain adequate prices for their
grain the purchasing power of the west will be greatly cur-
tailed, with unpleasant effects on the rest of the country, as
it means contraction of trade, which will in turn react on the
flow of deposits, and without a steady increase of deposits
bank credits cannot expand. A bank is a merchant in credit,
buying it from depositors and selling it to the commercial
community. If the supply is not sufficient the volume of
sales must decrease.
Smaller Deposits Anticipated
That some reduction in deposits is looked for by the banks
the public statements of their responsible officers leave no
doubt, and they are wisely setting their houses in order in
preparation for this contingency. This condition is not con-
fined to Canada; it is world-wide, and is due to the strain of
readjustment after the war. The satisfactory feature is that
the preparations to meet coming conditions have been steadily
going on for months, as evidenced by the curtailment of credit,
and, judging from past experience, the ti-ansition, because of
these preparations, will be effected with the minimum of loss.
The government announced when the 1919 loan was is-
sued that it would be the last loan of the kind and that fu-
ture expenditure would be met by taxation. At the begin-
ning of the year it was estimated that receipts would fall
short of expenditure by some $90,000,000. The new taxes,
however, produced something like $100,000,000 in excess of
expectations, and a surplus is now confidently expected in-
stead of the deficit. Borrowings by the government therefore
liave been merely the usual anticipations of revenue.
During the year two more Canadian banks have opened
offices in London, England — the Merchants Bank and the
Bank of Nova Scotia.
New Developments in West
There have been no further amalgamations, but a new bank
is understood to be in process of formation in the west.
Nothing has been said of it lately, and it was reported that
the promoters were waiting until after the harvest to canvass
subscriptions. Much will doubtless depend on the returns re-
ceived by farmers for their wheat, and as this has lately fallen
to below $2 a bushel, the prospects of obtaining the subscrip-
tions necessary to apply for a chai-ter are none too favorable,
this year at any rate.
Owing to its failure to induce the banks to make ad.
vances for farming purposes at less than market rates, the
province of Manitoba has undertaken an experiment in finance
which will be watched with interest by all, whether in sym-
pathy with the plan or not. This is the taking of deposits
from the pubic in order to finance loans to farmers. The ob-
ject is one of the best, and while the plan has been criticized
strongly there is no quarrel with the object sought. It is the
plan itself to which objection is raised. The scheme provides
for advances to farmers to mature not later than December
31st, and for one renewal for twelve months. This will make
the average loan a fairly long-term one. Now, if the funds
from which these loans are made, were obtained for this definite
purpose and on similar terms, there would be small objection
to the scheme, but when the funds are obtained from deposits
payable on demand, the possibility of trouble is not far
away. It is understood that the act permits advances by the
province, but if the depositors want their money, the province
can raise the funds only by borrowing, and in this case it will
have to pay market rates. No lending scheme has ever suc-
ceeded when demand funds have been used for long-term in-
vestments, as numerous failures have shown, and it is a mat-
ter of regret that so worthy. a scheme should be started on
principles fundamentally unsound.
Banks Not So Strongly Criticized
There has been much criticism of the banks for insisting
on business principles when co-operating with the provinces,
but there are unmistakable signs that many of the critics are
beginning to realize that the Canadian banking system has
really been the salvation of western Canada. An extract
from a recent editorial in the Calgary Farm and Ranch Re-
view, which has heretofore been most critical, is an evidence
of this: —
"A CHANGE OF HEART
"Confession is good for the soul, and here is where I take
advantage of it. I have thought and said a good many harsh
things about our banks and banking system generally during
past years. I have admitted its virtues for commercial enter-
prise, but have been rather more than sceptical in regard to
its application to agriculture. I have been a believer in the
smaller local bank, trading largely on the moral asset and be-
ing in closer human touch with its rural customers. I still
think that the local bank has much to recommend it.
"But a retrospect of the past three years, with pyramiding
farm credits, forces me to the conclusion that no system of
local banks could successfully have met the credit require-
ments of western Canada, at least, during the present season.
That it was precisely the ability of our powerful banks to
concentrate funds where needed when the pinch came that
saved the situation for a very large number of farmers in the
areas that have been drouth-stricken in recent years. We
'live and learn,' or ought to learn. I cheerfully admit that
more recent information and contemplation have caused m '
to change my mind in regard to our banking system."
Fewer Branches Opened
The past year has not been so marked by the increase
of branches as was 1919, when some 800 were opened. There
was a special reason for this, as during the war the shortage
of staff precluded much activity in this direction. With the
THE MONETARY TIMES
Volume 66
return of so many of their men to civil life, the banks took
advantage of the opportunity to extend into new territory,
particularly in the west.
During the year the paid-up capital of several of the
banks was substantially increased, through the payment of
calls on stock issued during the previous year. The total
paid-up capital at the end of September was $126,927,040,
and the rest $130,325,640, increases of $9,876,801 and $7,283,-
890 respectively.
The total s-ssets show a marked increase over 1919 and
previous yeai's. In 1914 they were, at the end of December,
$1,555,550,815, in 1919 $2,967,373,695, and on October 31, 1920,
$3,155,601,568.
Money Is Depreciated
While in figures this shows marvellous growth, the
changed value of the dollar must be taken into consideration.
According to the Department of Labor, the index number for
June, 1914, was 135.6, and for June, 1920, it was 346, indicat-
ing that the value of the dollar in 1920 was about 40 cents as
compared with 1914. When the various statistics of trade
and finance are adjusted on this basis the actual growth will
be more clearly shown. The index number is a modem idea
and one we will hear more of in the future. It is a device
for keeping record of the variations in the price of commodi-
ties as a whole by establishing a certain average figure based
on the prices of commodities in common use. Fluctuations
in a commodity price affect the index number, thus affording
a good record of one of the main factors affecting living con-
ditions. Money is a commodity as well as a measure of value,
and when prices measured in money rise, the value of money
as a commodity falls to the same extent, and more money is
required to do the same volume of trade as before.
Educational Work
In recent years the Canadian bankers have realized the
necessity of providing some system of education for the mem-
bers of their staffs, along lines similar to those followed by
the Scottish banks, which have so increased the efficiency in
the banks of that country. Owing to the numerous branches,
and the difficulty of giving their men the varied practical ex-
perience necessary to train them for work in other sections of
the country, some method had to be found of grounding them
in the theories on which all banking business should be based.
For those in the cities courses of lectures have been estab-
lished, and for those in the smaller centres courses in the
vai'ious banking subjects ai-e carried on by correspondence.
Inducements have been offered by the various banks to the
members of their staffs to take advantage of these facilities,
and the wide response has sho\\'n a spirit of enquiry among
the younger officers, which is full of promise for the future.
Many of the larger American banks have these educational
facilities. The National City Bank in New York, before send-
ing out a man to their foreign branches, gives him a thorough
grounding in the banking and commercial law and customs of
the country to which he is sent, and thus endeavors to give
him the confidence born of knowledge, which will, to a great
extent, guard against mistakes both in policy and execution.
TWELVE MONTHS' BANK FIGURES (COMPARED)
Circulation
Deposits on Demand
1919
November 242,309,082 \ 248,073,385
December 240,705,540 ' 247,611,079
January. . .
February . .
Marcli
April
May
June
July
Augusts . . .
September .
October. . .
1919
226,385,506
210,894,809
216,529,576
223,763,426
219,287,788
222,712,991
223,662,648
223,454,556
229,532,356
242,509,573
1920
237,269,805
223,979,656
231,220,770
243,226,193
235,085.179
238,(188,555
240.833,686
237,697,647
242,988,866
2,'>2,882,760
1918
1919
$
$
666,366,359
728,657,589
711,034,060
703,392,204
1919
1920
62.S,919,410
621,408,024
566,775,434
620,069,555
566,797,268
6.57,412,028
571,412,8.57
6.52,918,760
.568,730,118
645,957,229
605,927,027
6.59,622,583
584,176,765
639,415,(IJ5
584,300,855
640,.361,707
650,743,015
677,286,905
705,280,241
687,651,781
Current Loans in
Canada
Current Loan*
Abroad
Deposit* after
Notice
1919
939,329,271 1,137,858,277
9.58,473,557 1,138,086,691
1919
990,000,
1,018,184,
1,037,851,
1,070,985,
1,107,983,
1,139,569,
1,175,092,
1,196,632,
1,127,*37,
1,262,746,
1920
,'.63,297,037
,187,027,307
,197,719,570
,209,573,760
,229,073,515
,•243,700,977
,253,170,443
,261,647,7.32
,270,194,097
,271,275,751
Deposits Abroad
221,299,711
206,845,143
1919
203,015,797
200,560,308
210,104 607
212,649,478
221,605,846
240,201,440
294,650,777
238,363,859
255,274,256
2.53,965,203
1919
259,047,187
275,342,645
1920
285,203,939
277,478,631
318,277,881
327,235,197
345,095,475
360,358,386
348,008,545
356,.570,176
355,238,992
339,955,233
Call Loans in
Canada
November.
December.
Januar5'. . .
February .
March . . . .
■April
May
June.
July
.\ugust. . . .
September
October . .
1,082,709,655
1,075,640,003
1919
1,080,340,861
1,095,301,791
1,117,197,446
1,107,986,523 1
1,071,447,686
1,043,712,9,32
1,014,387,206
1,011,785,424
1,058,-572,202
1919 1918
$ S
1,189,408,5231 110,010,815
1,207,109,0461 119,153,924
1
1,104,940,16011
1920
,226,962,963
,257,015,902
,.322,267,030
,347,238,230
,.349,079,981
,365,151,083
,377,276,853
,385,470,1.53
,417,-520,756
,405,401,227
1919
513,3.38
590,063
984,608
328,561
490,932
525.5.50
217,957
964, .11 5
814,511
713,386
1919
149,302,293
168,955,696
1920
182,.533,I24
180,711,238
183,642.658
185.085,021
183,986,222
184,328,464
190,914,052
200,945,241
202,590,184
193,749,657
85,675,063
89,120,423
1919
87,598,427
79.154,121
87,601,337
86,091,844
89,187,032
95,8.52,728
93,587,497
95,899,836
96,912,709
100,549,390
1919
;
121,7-54,469
125,888,760
1920
132,015,334
127,251,919
12«,233,310
125,644,859
119,114,493
115,272.587
11.5,360,894
113,5"8,923
114,669,611
113,135,902
Call Loans
Abroad
1918
1919
$
$
171,035,7.32
169,626,880
150,248,322
172,232,161.
1919
1920
140,819,656
170,206,805
155,98.3,681
184,469,882
160,116.443
205,2112,133
1.55,533,666
206,229,451
157,176,325
213,964,182
167,236,045
219,214,431
178,098,434
203,045,209
174,176,578
193,888,245
169,532,489
186,9H2,960
158,194,085
188,367.459
January 7, 1921
THE MONETARY TIMES
Banks' Service in Public Finance
Dominion Government Deposits Have Decreased During Past Year— Trend of
Provincial Deposits Fairly Even— Municipalities and Provinces Increase their Loans
—Holdings of Public Securities Have Been Liquidated to Meet Commercial Demands
AS DEPOSITARIES of the Dominion government, Canadian
banks during the pa«t few years have performed a service
of inestimable value. Ordinarily, the collection and disburse-
ment of the national revenues involves considerable woi-k, and
the balances maintained by the government are supposed to
recompense the banks, as these funds may be used for coirLmer-
cial or other purposes. When the Dominion government com-
menced floating domestic loans, however, the banks were
called upon to act as intermediaries, and during each campaign
and for some time after an enormous amount of work was
done by these financial institutions with little remuneration.
Following each loan large amounts were placed on deposit, but
as the government did not float these loans for the purpose of
holding the money on hand, these balances, an illustration of
which will be seen in last year's figures, were quickly with-
drawn, so that the banks benefited but little. Furthermore,
interest on Canada's debt is paid through the banks, and small
though this item may appear, it involves considerable work,
and will continue to do so for some time.
As no domestic loans were floated in 1920, the work of the
banks was somewhat reduced in this regard. Balances main-
tained by the government were also reduced, however, so that
the banks had less money at their disposal.
The course of deposits of the provinces in chartered banks
has been fairly even in the past few years, therefore this ac-
count calls for little comment. The following figures show the
balances due to the Dominion and pi-ovincial governments at
the end of each month since the beginning of 1919: —
Due Dom. Due Prov.
1919 — Government Governments
January ?236,119,588 $21,238,779
February 238,256,091 20,800,869
March 228,201,515 21,646,571
Due Dom. Due Prov.
1919 — Government Governments
April 188,129,800 21,754,210
May 113,860,593 26,196,865
June 128,890,218 24,454,438
July 140,575,172 23,499,116
August 100,639,909 23,552,757
September 110,217,948 24,094,698
October 121,028,537 20,699,308
November 350,381,389 17,625,464
December 224,926,921 19,032,841
1920 —
January $224,597,564 $20,276,072
February 217,059,832 19,864,020
March 262,340,599 17,827,892
April 261,044,115 19,178,187
May 216,098,321 20,691,300
June 183,913,852 23,955,524
July 170,190,302 26,344,597
August 153,359,936 25,057,401
September ^ 156,410,480 20,933,968
October 160,129,252 24,942,898
Loans to Provinces and Municipalities
Notwithstanding the increased amount of permanent
financing during the past two years, provinces have greatly
increased their bank loans. At the beginning of 1919 the total
amount of these loans was $5,410,289, while at the end of Octo-
ber last the figure was $14,361,485.
Of more importance than loans to provinces, however, are
loans to municipalities. During the past year these advances
have shown large increases. The condition of. the bond mar-
THE MONETARY TIMES
Volume 66
ket was, no doubt, the chief x-eason, but a review of the amount
of permanent financing shows that bond issues were equally
substantial in total as in the previous year.
Many municipalities, during the war and for some time
after, refrained from spending large sums on improvements,
some of which were really necessary. Consequently a number
of these municipalities undertook to do that which they had
neglected during times of stress. Had the bond market been
anything like normal there would have, no doubt, been a flood
of securities, but prevailing conditions prevented this. Evi-
dently temporary accommodation had to be secured in a large
number of cases.
The trend of these loans accounts since January, 1919, is
shown in the following table: —
Loans to Loans to
1919 — Provinces Municipalities
January $5,410,289 $32,640,198
February 6,159,859 36,380,183
March 6,636,143 41,993,305
April 8,660,899 47,911,199
May 8,156,982 50,356,227
June 8,104,927 52,349,352
July 3,700,208 54,455,738
August 4,846,194 57,536,867
September 6,667,116 57,033,309
October 11,226,420 56,116,897
November 13,815,103 52,703,363
December 15,187,626 42,635,290
1920 —
January $11,271,190 $46,147,388
February 13,090,090 52,690,790
March 13,585,217 62,992,675
April 18,768,268 72,281,019
May 18,887,396 73,904,635
June 15,773,409 76,410,676
July 14,994,799 78,792,822
August 12,314,726 79,912,041
September 13,183,317 78,103,364
October 14,361,485 71,374,060
Public Security Holdings
Another public service which the banks perform is their
extensive purchase of securities. During the past year, how-
ever, holdings of such securities have been greatly reduced. A
large part of the amount under "Dominion government and
provincial government securities" represents loans to the Do-
minion on security of treasury bills. It will be seen, there-
fore, from the figures given below, that the government has
not been leaning so heavily on the banks as in 1919.
In times of easy money the banks employ surplus funds
by purchasing such securities as municipal, railroad and other
bonds. The year of 1920, however, was by no means a period
of easy money, but rather extremely adverse. Demand for
funds was so great that banks found it necessary to liquidate
their holdings of securities and place the money where it could
be used for commercial and other necessary purposes.
The following figures illustrate these remarks: —
Dom and Can. Mun. & Railways &
Prov.Gov. other public other bonds
1919 — Securities Securities etc.
January $159,039,874 $259,462,077 $53,546,118
February 112,160,131 259,422,456 53,416,524
March 115,180,320 260,003,939 54,276,188
April 117,616,232 258,504,084 54,628,223
May 123,939,312 256,617,235 56,812,743
June 224,301,264 254,147,015 55,191,819
July 278,190,601 253,490,909 55,214,138
August 273,332,930 254,235,984 52,679,157
September 323,781,953 255,098,813 53,658,486
October 361,280,956 255,684,576 54,442,926
November 336,855,869 253,341,708 54,327,528
December 149,780,058 255,239,781 54,957,659
1920 —
January $127,087,135 $249,413,578 $51,548,307
February 125,729,366 234,608,866 50,605,825
March 126,609,453 223,709,931 50,969,557
April 118,416,840 214,768,123 50,778,055
May 117,864,456 205,129,314 47,988,462
June 117,471,598 206,534,550 46,785,603
July 117,037,931 202,471,301 45,738,394
August 117,018,957 201,647,011 44,778,724
September 116,287,730 202,349,860 46,613,366
October 119,010,969 201,447,094 47,023,401
Under the heading of "Canadian municipal securities and
British, foreign and colonial public securities other than
Canadian," the chartered ba-nks of the Dominion showed an
amount of $201,447,094 at the end of October, 1920. While
the banks' holdings of Canadian municipal, foreign and col-
onial securities are considerable, the above figure chiefly re-
presents obligations of Great Britain.
;
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January 7, 1921
THE MONETARY TIMES
37
In 1916 the Canadian banks loaned the British govern-
ment $100,000,000 for the purchase of munitions, and a sim-
ilar amount in 1917 for the purchase of wheat. These loans
were originally advanced on a three-years' basis, at a mod-
erate rate of interest, and renew&ls have been made from
time to time. Of this $200,000,000, one-quarter was paid off
during the first five months of 1920, leaving a balance of
$150,000,000.
From the following figures, which illustrate the trend of
the above mentioned account since the beginning of 1916, the
loans and repayments are readily apparent: —
January
February
March
April
May . . . ,
June , . . .
July . . . .
AuETUst
September
October
November
December
1916. 1917. 1918. 1919. 1920.
$41,746,948 $163,299,724 $235,989,801 $259,462,077 $249,413,578
44,503,218
44,384,303
93,052,670
. 106.680,437
. 124,637,308
. 148,916,278
. 153,319,333
182,808,459
178,893,152
178,624,830
178,833,219
167,769,412
182,461,263
176,249,192
161,162,630 176,015,496
163,380,276 172,639,288
165.470,146 218,405,643
167,758,788 224,093,823
242,256,480
250,422,761
260,978,605
269,102,070
266,226,264
265,155.438
252,239,043
250,698,255
260,254,056
248,398.067
253,518,074
269,422,466
260.003,939
258,504,084
256,617,235
264,147,015
263,490,909
264,235,984
255,098,813
255,684,576
253.341.708
265,239.781
234,608,866
223,709,931
214,768,123
206,129,314
206,534,560
202,471,301
201,647,011
202,349,860
201.447.094
Repay Balance by 1922
The remaining balance of $150,000,000 is now being re-
paid, and will be wiped out by May, 1922. On November 1
and December 1, payments of $5,000,000 were made, and it is
the intention of the British government to continue monthly
payments through 1921 and a part of 1922.
Great Britain still owes Canada about 180 millions, in
addition, which represents the credit balance due the Cana-
dian government on the various advances made mutually
by the two governments to each other to cover their respec-
tive war expenditures in the two countries. No arrangements
for the liquidation of this debt are known to have been made
as yet. The repayment of the other debt of 150 millions to
Canadian banks will, however, materially assist the credit
position of the Dominion, and bankers express much satis
faction that the account is being thus disposed of.
Deputy Secretary Trowbridge, of the province of
Alberta, announces that the total number of auto licenses
sold in 1920 is 38,050, as compared with 34,000 last year. It
was thought three months ago that the annual issue would
reach the even 40,000 mark before the end of the year, but
the drop in grain prices is held as accountable for the
slackening of auto purchasing during the fall.
400
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MONEYS COINED BY CANADA'S MINT
Coined 1 Jan.— 31 Dec, 1919
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Value,
$
3,195,878.15
1,338,003.45
3,258,044.10
1,076,000.00
1920
were as follows
Bronze
pieces.
11,201,347
15,205,551
:-
Gold
pieces.
12135,889
171,042
1
Value,
$
661,326.47
832,404.40
4.86
Silver
pieces.
22,903,234
14,287,049
Value,
$
112,013.47
152,055.51
115,100.00
145,585.00
Note: The only gold pieces coined and issued were sovereigns.
38
THE MONETARY TIMES
Volume 66
BANK CLEAR.ING HOUSE FIGURES BY PROVINCES
1914
1915
1916
1917
1918
1919
1920
$
•2,536,795,848
2,797,227,774
1,397,358,249
561,899,682
399,965,267
78,259,921
100,280,103
215,941,751
S
2,411,073,625
2,786,449,334
1,557,815,247
371,713,657
308,837,076
77,058,264
104,414,590
188,526,217
$
§3,240,773,729
t3,939, 152,266
2,040,717,775
415,797,842
400,762,688
90,946,795
125,997,881
255,347,092
$
3,792,647.962
4,435,709,612
2,653.354,314
521,913,559
566,007,431
102,948,814
151,812,753
340,238,760
$
14,326,431,476
5,114,234,344
2, 395, 388,. '■07
670,405,480
568,848,622
117,133,609
215,259,297
368,631,391
$
5,479.295,137
6,595,339,437
2,353,647,0.S2
804,018,563
650.034,151
153,139,927
241,. 300, 194
424,504,941
$
6,904,908,623
7,540,531,459
3,057,452,638
1,061,107,104
805,818,885
193,761,263
255.678,397
464,296,936
Quebec
Manitoba
British Columbia. ....
Alberta
New Brunswick
Saskatchewan
Total
8,087.728,595
7,805,888,010
10,509,496,068
12,564,633,205
13.776,332,726
16,701,279,382
20,283,555,305
•Peterboro started June, 1914. fSherbrooke started February, 1916. §Kitchener started April, 1916.
IWindsor started April, 1918. •♦Moncton, started August, 1920.
BANK CI^EARINGS BY CITIES— MontK by MontH
Clearing House
Brandon
Brantford
Calgary
Edmonton
Fort William
Halifax
Hamilton
Kitchener .......
Lethbridge
London
Medicine Hat
Moncton
Montreal
Moose Jaw
New Westminster .
Ottawa
Peterboro
Prince Albert. . .
Quebec
Regina
St. John
Saskatoon
Sherbrooke .
Toronto
Vancouver
v^ictoria
Winnipeg
Windsor
January
1920
$3,129,439
5,687,152
37,638,201
24,488,025
3,120,439
21,488,859
29,168,399
5,092,879
3,338,654
15,978,011
2,241,896
614,027,196
7,060,890
2,551,285
40,971,148
3,862,216
2,090,029
27,449,109
18,129,119
14,937,167
8,773,312
4,985,900
447,974,237
65,698,847
11,609,302
206,96.3,731
10,819,497
Total . I $1,639,274,939
February
1920
$2,497,698
4,774,589
30,013,304
19,650,940
3,528,317
16,013,622
24,675,066
4,002,016
2,787,419
12,774,846
1,632,528
March
1920
$3,106,770
6,031,500
37,403,388
25,069,355
3,486,860
19,820,570
31,324,956
5,432,722
3,533,432
15,572,717
1,995,363
538,611,264
5,627,802
2,418,964
34,031,-304
3,177,888
1,709,674
24,960,565
13,112,007
11,727,802
7,281,662
3,873,412
390,838,269
62,489,007
11,160,924
168,615,962
10,238,521
$1,412,225,372
568,4.'>2,098
7,097,665
3,149,518
40,941,647
4,064,579
2,112,950
27,698,374
17,681,764
15,039,493
9,120,115
4,695,884
439,181,926
74,994,746
12,150,766
191,763,117
13,631,266
$1,584,553,531
April
1920
$3,167,430
7,025,759
34,126,554
31,903,710
3,591,254
19,882,133
33,500,454
5,345,694
4,588,282
16,777,458
1,913,617
531,665,934
7,-379,639
3,170,336
41,675,434
4,692,080
2,066,412
30,339,053
18,597,852
14,9.52,029
9,812,068
5,322,547
463,804,088
71,765,-S97
11,914,125
188,183,383
13,742,647
$1,580,905,369
May
1920
$3,248,893
6,780,005
32,058,375
26,861,996
3,653,762
22,819,768
33,509,584
5,715,514
3,443,760
17,613,415
2,071,857
599,923,247
6,770,000
3,170,050
55,275,196
4,370,357
1,999,617
31,456,221
18,063,874
16,480,743
9,549,685
5,829,361
460,896,938
71,884,569
11,859,319
211, ,529,743
14,597,735
$1,681,439,584
June
1920
$3,390,494
6,480,618
30,214,716
21,742,949
3,984,840
24,586,070
32,859.435
5,889,216
3.287,464
19,167,708
2,098,749
612,-304,115
7,298,373
3,464,109
45,680,127
4,531,024
1,998,203
32,859,435
18,746,168
16,335,209
9,636.882
5,297,976
469,284,720
73,870,444
12,478,128
182,749,256
14,461,131
$1,664,697,559
Clearing House
July
1920
August
1920
September
1920
October
1920
November
1920
December
1920
Brandon .....'
Brantford
Calgary
Edmonton
Fort William
Halifax
Hamilton
Kitchener
Lethbridge
London
Medicine Hat ... ,
Moncton
Montreal
Moose Jaw
New Westminster.
Ottawa
Peterboro
Prince Albert . . . .
Quebec
Regina
St. John
Saskatoon
Sherbrooke
Toronto
Vancouver
Victoria
Winnipeg
Windsor
$3,523,792
6,507,651
32,758,119
21,110,274
3,943,737
24,520,960
34,312,4.54
5,312,854
2.936,846
16,409.122
2,043,720
Total .
647,820,992
7,450,168
3,120,751
38,188,647
4,385,513
1,993,060
34,892,388
18,211,891
15,961,197
10,037,638
6,071,296
447,270,993
76,934,040
14,670,096
187,417,562
16,647,014
$3,086,815
5,775,195
30,434,969
21,767,146
3,525,798
20,-553,413
30,270,697
4,836,003
3,600,231
14,878,915
1,84-5,928
2,451,731
576,939.686
7,201,741
3,063,053
33,008,013
3,764,802
1,977,068
29,698,617
17,168,314
16,004,679
6,550.691
5,671,186
406,191,434
74,858,240
11,144,187
184,981,567
13,859,1.56
$3,182,754
6,574,696
36,447,175
22,715,293
3,805,695
22,421,025
31,836,176
4,720,901
3,927,345
14,676,204
2.465.692
3,513,528
556,543,834
7,723,012
3,077,724
35,473,726
4,235,936
1,666,781
30.648,095
18,316,105
13,253,567
9,632,660
5,524,034
414,156,433
77,437,078
11,727.457
245,98-3,823
15,371,371
$4,225,687
6,4v0,122
47,454,614
24,057,805
4,437,-543
19,808,840
34,241,010
4,644,363
5,410,618
16,201,449
3,337,120
3,395,827
619,293,513
10,428,515
3,049,225
45,231,603
4,7.S6,793
2,025,551
30,351,-356
23,904,262
13,620,854
11,608,900
5,476,598
474,916,435
72,563,504
13,709,053
414,840,605
16,478,472
$4,688,149
6,651,144
48,407..332
27,798,216
5,107,407
23,812.271
33,261,308
5,395,160
5,347,988
16,980,248
3,385,257
3,843,638
652,846,705
10,886.385
3,145,045
57.308,879
4.395,692
2,184,122
34,276,795
25,881,328
14,297,754
12,668,947
5,668,353
494,365.696
75,231,039
11,718,439
429,192.133
15.512.541
$1,684,452.775 $1,535,109,275 ' $1,607.058,120
•1,935,870 237
$2,034,256,971
$4,150,418
7,394,518
41,116,330
26,103,653
5,023,226
19,950,866
31,774,421
5,193,175
4,465,827
15,127,876
2,776,853
3,886,152
590,760,454
9,654,142
3,118,277
47,220,857
4,422,908
2,222,769
32,565,553
22.456,612
14,161,893
10,730,512
5,630,313
501,323,633
81,174,710
11,565,350
403,8-33,417
1-5,906,848
1,923,711,563
January 7, 1921
THE MONETARY TIMES
39
CANADIAN BANK CLEARINGS
The following: lable gives the yearly total clearings of each house since its commencement :-
(Note. — In practically all cases the first figure is for a broken period.)
City
1889
1890
1891
1892
1893
1894
1895
1896
1897
1898
1 E
2 E
3 C
4 E
5 F
B h
7 V
8 1
9 L
10 L
11 t>
12 A
13 A
14 A
15 ^
16 C
17 F
18 F
19 C
20 F
21 S
22 S
23 S
24 1
25 V
26 \
27 \
28 \
$
s
«
%
$
%
s
s
s
c
rantioru
lalifax
47.534.252
62.281,748
64.601,913
10,320.134
59.872.489
38.306.280
60,381,918
37,824,976
58.778.698
34.307,856
60,978,524
34,277,878
61,237.206
33,753.865
63.513,838
33,350.542
61.942.831
35.637.364
fhh 1«
H ^ ' ■
onaon. ... ....
1^ ct"^
lontreal
454.528.000
473,984,000
514,607,000
590.043.000
568,732,000
546.600.000
583,160.000
,527.851,000
601.185.000
732.262.000
J. Westm'ster
f h
Alh *■
,'"' t,^ ''
juepec
20,284.420
30.109.575
30.349.265
. ■ . ° ,
oronto
145,897,939
326,564.323
309,278,689
279.270.739
308.636,044
342.031.851
371.456.867
437.661.654
8.414,923
H ^n a
5,931.409
50.602.648
55,873,630
1,042,926,076
64,146,438
84.435.832
90,724.325
$502,082,252
$536,265,748
735,426,986
1.014.786.092
976,217.583
969,559.941
1.049,304,780
1.184.051.654
1,402,923,771
1899
1900
19U1
1902
1903
1904
1905
1906
1907
1908
1909
$
s
s
$
$
s
$
*
$
S
2.
3
"•;■;■■;■■;;; ;;;;';;;
41,771,924
20.083.179
69,745,006
45,916.792
64,815,227
38,496,509
99,453.662
51.561.012
j
6
7
8
9
70.600.705
40.298,084
77.594.871
40.262.588
87,161,888
42,554,583
,S8,532,368
45,965.217
93,349.633
53,419,704
90.115.784
59.003.094
89,251.562
68.385,601
92,468,040
78.480.620
93.587.138
88.163,279
90,232,247
72.333.062
95.278.468
84,803.936
23,097,509
42.848,581
45.552.230
50,429.505
58.063,826
65,770,473
56,875,041
62,093.337
12
13
•
794.029,000
73(),933,o66
889,479,66b
1,098,970,000
1,113,978,000
1.065.067.000
1,324,313,000
1,533,597.000
1,555,729,000
1,467,316,000
1.866.649,000
\*
29,200,088
96.445,291
106,083,750
106,637.587
120.891,877
135,866,735
156.487.801
154,367,756
173,181.973
17
18
1
48,177,614
73,881,253
80,794,414
77,649.688
86.734,553
92.934,213
107.460.897
111,812,551
118.803.773
20
21
22
23
24
25
26
27
28
32,922,509 1 36.001.574
40,072,689
41,702,253
48,950,500
50.756.315
52,836.333
60,601,241
66.150.414
66,435,636
72.404.500
504,872,846 ; 513.696.401
37,802,218 ! 46.644.098
33,199.807 1 32.779,919
625,271.306
47,006.211
30,801.369
809,078,559
54,467,549
28,580.751
808.748.260
66.215.765
30,818.426
842.097.066
74,029.902
33.070.009
1.047.490.701
88.460.391
36.890.464
1.219,125.359
132.606.358
45.615.615
1 228,905,517
191,734,480
55,339,588
1,166,902,436
183,083,446
55,356,013
1.437.700.477
287,,528,944
70,695,882
107,786,814 106,956,792
144.199,483
188,370.003
246.108.006
294.601.437
369.868,179
504.585,914
599,667,576
614,111,801
770,649,322
1,621,511.983 1,584,869,243
1,983,924.231
2,549,090,693
2,691,315,039
2.738.580,112
3,335.552.166
4,015,800.024
4,324,648,961
4,142,137,725
5,204,957,530
1910
1911
1912
1913
1914
1915
1916
1917
1918
1919
1920
1
2
3
4
6
7
8
9
10
11
12
13
14
IS
16
17
18
19
20
21
22
23
24
25
26
s
21 ,278,869
" 150,677.031
71,635,122
95,855,310
101,226,496
s
29,430,274
27,206.985
218,681.921
121,438,391
7,865,923
87,994.038
125.250.982
s
32,875.875
30,749,317
275.492,303
220.727.617
40,503.087
100.467.672
167.712.729
"33,485,947
84.526,961
s
32,186.498
32.697,443
247,882.928
213.0.53,218
49.265,358
105,347.630
178,107.853
28.893,876
90,720,202
21 106,215
$
26,397,443
28,669.309
201.669.873
157.308,683
39,110,558
100,280.103
148,934.586
" " 21.217',849
86.024,236
19,768,862
$
27,132.123
26.640.280
169.758,599
105.834,955
24,674,847
104,414,590
151,420.271
19.740,328
89.774,787
13.503.194
S
28.922.518
34.243.297
233.097.671
114,345,%4
27.472,160
125,997.881
200.811.087
20.201,665
31,648.551
100,090,560
21,670,502
s
30.429.612
42.189.449
348.663.426
142.606,772
34,224,050
151.812.753
244.401.339
30,268.621
45.021,074
112,664,207
29,716.159
$
32,654,296
48,141,451
331,334,577
171,524,924
38,313,344
215,259,297
262,076,476
32,549,572
41,901,108
126,958,350
24,088,013
$
36,922,769
57,825,305
355,009,588
233.066,5*0
41.224,768
241,300.194
306,370,966
48,244,693
38,179,533
164,126,856
23,778.450
$
41,398,339
76.108,949
438,073.077
293,269,362
47,209,878
2.5S.678,.397
380,733,960
61.580.497
9,378.091
67,154.297
28.818.693
71.554.221
45.667,866
192,157,969
28,808,580
17.090.876
2.088,558,000
2.368,491.239
39.872,743
2,845,468,033
65.136,326
2,879,118.859
61,370,943
28.424,494
207.667.008
2,631.354,533
45 846,371
19,284.692
209,662,599
11,338,896
12.574.904
165,873,241
98,205.535
78.259,921
59,314,941
2,628,123,428
42,634.319
■13,460,082
211,636,519
20,970,664
8.622,444
158.325.906
87.122.611
77.058.264
50.146.843
3,722,609,663
52,971,442
13,878,003
261,049,599
26,675,636
9,709 906
192,163 703
I24,349„591
90,946.795
68.316.153
24,378,900
2,570,229,725
321,588,718
■ 80,331,121
4,188,2,55.210
64.896.741
17.480.445
291.197.713
32.917,018
11,811,256
213,.504,960
169.800,113
, 102,948,814
93.730,650
33,949,442
3,004,783,565
419.610,898
84,822,216
4,833,924,041
78,425,563
23,565,159
357,598,753
37,574,621
14,149,320
237,904,224
184,624,626
117,133,609
91,431,882
42,406,079
3,379,864,506
545,368,714
101,471,607
43,3,54,403
2,362,734,211
6,254.781.093
86,347.586
28 714.013
472.691.921
• 41.376.004
21,280.641
290,983.483
210.989,136
153.139,927
105,887,578
49,574,861
4,251 644,303
655,913,205
119.391,345
95,790.321
2.316.724,263
7.109.189,038
94,578,332
193,714.888
213,952,292
244,123,451
515.006.581
50,639.788
8,545,562
158,760,185
115.727,647
88,969,218
115,898.467
22,936.528
165.654,745
132,087,457
82.447,747
96,034,717
24.046,236
123.710.055
50.739 159
77.843.546
9,004,823
133,319.176
73,032.088
77,328,182
63.557.142
367.295,561
230,269,296
176,670,387
115.403,072
64.046.860
1,593.954,2,54
444,988.818
101,567.074
1.852,397,605
543,484.354
134,929.816
2,160.230,376
645,118,877
183,544,238
2.1S1.281„577
606.899.710
176.977,074
2,013,055,664
420,951,718
121,663.272
1,885.956,257
281.575.949
76.677.626
5.410.204,802
878.901.621
145.707.146
171,266.199
28
953,415,182
1.172.762.142
1.537.817,524
1.634.977.074 , 1.370.960 806
1.530.683,124
2,011,795,257
2,622,924,702
3.016.054.299
6.154,701.015
7.391.368.207
9,155,881,412
9.275.139.154
8.087.728,595
7.805.888.010
10,509,496,068
12,564,633,205
13,776,332,726
16.701,279,382
20,283.555.305
THE MONE, TARY TIMES
Volume 66
The Trust Companies' Business in 1920
Scarcity of Funds for Investment was Outstanding Feature of the Year— Capital
Needed for Development of Farms and Industry— Succession Duty Legislation in
Ontario— Law Respecting Beneficiaries— Growing Appreciation of Trust Company Service
By ROBERT BEATTIE
National Trust Co., Toronto
T^HE scope of the business of Canadian trust companies is
•*■ now so well known that there would be little value to
such a paper E'S The Monetary Times, in any resume of the
work they carry on. The public is coming more and more to
realize that the business of a trust company is to exercise
the various functions which trustees exercise, and to see that
there are advantages in having these functions carried out
by corporate bodies instead of by individuals. Accordingly,
the trust comp&nies have had steady and satisfactory de-
velopment of their business as ej^ecutors and administrators,
and in the various other trusteeships which modern business
requires. The purpose of this review, however, is not to dwell
on this development, but merely to refer briefly to certain
points of special interest and concern to which the attention
of trust company officials has been directed during the year.
Shortage of Capital
The outstanding feature of the past year has been scar-
city of funds available to the lending corporations for invest-
ment. The significance of this fact from the n&tional point
of view will be recognized if it is borne in mind that the
development of Canadian agriculture depends to a very con-
siderable degree on the moneys loaned to Canadian farmers
by Canadian loan and trust companies.
In the past funds have reached the farmers from two
sources. The first source was formerly the savings of the
people in European countries, notably Scotland, Holland, Bel-
gium and Prance, who, prior to the war, sent through Euro-
pean agencies and Canadian trust and loan companies large
sums for investment in Canada. The European requirements
of capital for war purposes combined, with adverse exchange
rates during the war, to slacken the flow of funds. In
the later stages of the conflict, European capital became
increasingly difficult to obtain, and since the war it has be-
come impossible to send money profitably out of Europe for
investment. This source of supply has therefore been cut
off. At annual meetings of trust companies during the year
it was pointed out — and up to the present the statement has
proved true— that for an indefinite time Canada would be
thrown more and more on her own resources for the capital
needed for her development. Contrary to what might per-
haps have been expected, the United States has not yet
furnished any considerable amount of money for Canadian
mortgage loans. Although present exchange conditions offer
American investing corporations advantages in this field, the
demand for farm loans in the United States has so far been
strong enough to prevent American capital from seeking
this Canadian outlet.
The other source from which money formerly re&ched
the' Canadian farmer was the funds which the trust and loan
companies administer as part of the assets in their care or
themselves own — their capital and reserve. So far as the
trust companies are concerned, this is now aJmost the only
source available for mortgage money. With the general
increase of trust company business, it has grown substan-
tially. Competing with the demand for farm loans, however,
is the need of municipalities and industries for capital, re-
sulting in offerings by such corporations of bonds &t attrac-
tive rates. Many trust company officials feel, therefore, that
the domestic source of supply above mentioned is not likely
to be by any means sufficient to meet the probable early
needs of the country for capital. Already at least one of
the provincial governments has undertaken a n&tional cam-
paign to sell bonds with the object of lending the proceeds
to farmers. Another has opened savings banks in an effort
to supply funds for farm development. These are only two
of the many signs which show that in order to discharge
their function in the community — to provide sufficient funds
so that governments shall not be obliged to exhaust their
credit (already strained to take care of the recognized public
undertakings and services) in financing private enterprise —
the companies will have to make every effort consistent with
their duty to their clients to attract funds for investment on
mortgage security.
Outstanding Loans In Good Condition
On the other hand, the outlook for loans already made is
of the brightest. There is every prospect that the f&rmers,
after the marketing of the crop of 1920, will have funds to
meet all their commitments. Their need for capital will,
however, be none the less, because it is these very successful
farmers who should develop mixed farming. This will make
them borrowers of the highest class of such funds as the
companies have available. Their assets already developed
will give them ample security for necess&ry loans, and their
borrowings will be invested in the erection of new buildings,
the purchase of better stock, and generally in the improve-
ment of their holdings. During the past few years the im-
provement along this line, in the west particularly, has been
phenomenal. The rude farm shacks, which at one time were
fairly common in some sections, have given place to sub-
stantial dwellings. Improved barns &nd outbuildings and
increased farm machinery, have replaced the eai'lier limited
equipment. Electric light, motor transit, better roads and
telephones have broken down the isolation which used to
make life in the farming districts difficult. The faith of
those who early saw the future of Canada's vast spaces is
being completely justified.
Succession Duties
Another field is of interest to trust companies — the field
of legislation dealing with property. The year just ended
has seen several new laws passed which affect their dealings
with property in their charge. In Ontario the most important
law, perhaps, has been the Succession Duty Amendment Act,
passed e.-t the late session of the legislature. In the form'
earlier proposed, this law contained changes which were far-
reaching, but it was so modified subsequently, that it refers
in its final form only to the exemptions of estates from death
duties and to the rates payable on estates of various sizes
passing to various classes of beneficiaries. In 1905 estates
aggregating $50,000 or less were exempted from taxation if
they passed to lineal beneficiaries. This exemption was sub-
sequently reduced to $25,000. As a result of other changes,
of which the one of the past ye&r is the latest, only estates
of $10,000 or less are exempt if passing to near collateral
relations, and only estates of $5,000 or less are exempt if
passing to remote collaterals or strangers in blood.
Another change brought about by the recent Succes-
sion Duty Act refers to the administration of the law. Under
former arrr.-ngements the Succession Duty Office was re-
quired to satisfy itself that there had been no undervaluation
of the assets which came under its survey. This duty is now
transferred to the Surrogate Judge concerned with the pro-
bate of the will. The duty of making the valuation remains.
January 7, 1921
THE MONETARY TIMES
of course, where it has always rested — on the executor of
the estate.
Beneficiaries
Another Ir.w recently passed which aifects the procedure
of the companies, concerned as they often are in the tracing
of missing- beneficiaries of estates in their charge, is the
Absentee Act, passed also last session in Ontario. This act
provides that the Court may declare a person an absentee.
An absentee it defines as "one who having had his usual
place of residence or domicile in Ontario, has disappeared,
whose wherec.'bouts are unknown, and as to whom there is
no knowledge as to whether he is alive or dead." The Court
may also make an order for administering the property of
an absentee and a committee may be appointed for the pur-
pose. The powers and duties of the committee are the same
as those of a committee of the estate of a lunatic. The act
specifically provides that a trust company with or without
one or more persons may be appointed such a committee.
The last legislation to which attention should be drawn
in an article such as this is the new bankruptcy law of the
Dominion, which went into force in July. The adv&ntages of
this act in making uniform the regulations of all the pro-
vinces dealing with this import&nt matter are obvious. So
far as the trust companies are concerned,, the law has been
in operation too short a time as yet for a forec&st to be
possible of its defects on their work. That trust companies
have superior facilities for the performance of the duties of
trustees in bankruptcy, as well as those of receivers, liqui-
dators and assignees, no one acquainted with their organiza-
tion will question. Their offices are in ma-ny cases distributed
throughout the country, and each oflice staff includes experts
with long training and intimate acquaintance with local con-
ditions. Trust company officials generally believe that as
time goes on the amount of work of this kind which they are
asked to perform will' become very large.
The Volume of Business
The editor of The Monetary Times hais suggested that its
readers might like to know "how trust companies get their
business." It is not easy to give an accurate and confident
answer to this question, since although the companies know
what are the influences which lead a man or woman to en-
trust his or her affairs to them, it is very difficult for them
to class these influences in the order of their power or im-
portance. The comp&nies would agree that one of the most
important causes of their appointment to positions of trust,
is the advice which solicitors give their clients. Another
factor is the high reputation of the individual company- —
direction, executive and staff. This explains, however, rather
the appointment of one company instead of another, than the
appointment of a comp&ny instead of a person. Perhaps the
most valuable influence is that of satisfied clients and bene-
ficiaries: for it holds in the trust company business as in any
other that the best advertisement is a satisfied customer. It
remains to name advertising as the means by which the
compE^nies try to find new clients to satisfy. In recent years
most companies have made steady efforts to explain their
service to the public, and there can be little doubt that gen-
eral knowledge of the duties which the companies perform
is growing.
Canadian Banks Expand in Foreign Field
Movement of 1919 Continued in 1920— Montreal Makes Important Connec-
tion, and Commerce and Royal Increase Branches in South — Foreign
Branches Bring Capital to Canada— How They Help the Canadian Exporter
By G. F. Towers, B.A.
Superintendent, Foreign Trade Department, Royal Bank of Canada
THE year 1920 has been one of development for Canadian
banks abroad, a development accomplished partly by means
of alliances with established banks, partly by the opening of
foreign branches of our own institutions. Last year's Annual
of 77(1' Monetary Times signalled the entry of the Royal
Bank of Canada into Argentina, Uruguay and Brazil, where
branches were established at Buenos Aires, Montevideo and
Rio de Janeiro respectively. The same review noted the con-
nection of the Dominion Bank with the British Overseas Bank,
Ltd., head office London, an organization formed to handle
foreign trade, and also the affiliation of the Union Bank of
Canada with the Park Union Banking Corporation, operating
in the far east. Branches of the latter had even then been
opened in China and Japan.
The Year 1920
Developments of this nature have gone on in force during
1920. The Bank of Montreal acquired an interest in the Colo-
nial Bank, a British organization with strong connections
through the British West Indies. The Canadian Bank of Com-
merce entered the Caribbean- field, and by November 30th last
had established branches in Havana, Cuba, and Kingston,
Jamaica. They had fui'ther announced their intention of com-
mencing business in Rio de Janeiro, Brazil, and Port of Spain,
Trinidad. Finally, the Royal Bank of Canada, throughout the
year, pursued its policy of expansion, increasing the number
of its branches in Caribbean countries, and opening in Barran-
quilla, Colombia, and Santos and Sao Paulo, Brazil. This
bank now covers all the islands of the Caribbean and seven
countries in Central and South America. The total number of
foreign branches of Canadian banks is now probably one hun-
dred and fifty, not including their offices in Newfoundland.
This compares with little over one hundred branches on Octo-
ber 31st of last year.
Foreign Deposits Increase 40 Per Cent.
The growth of old branches and establishment of new of-
fices have been reflected in the figures of the monthly state-
ment of the chartered banks to the Dominion government.
The increase in foreign deposits has been striking. On Sep-
tember 30th, 1919, the consolidated monthly return showed
$255,000,000 under the head of "deposits elsewhere than in
Canada." This amount had increased about 40 per cent., to
$355,000,000, by September 30th last. Of the $100,000,000 in-
crease the Royal Bank of Canada contributed $67,000,000, the
deposits in their foreign branches increasing in the twelve-
month period from $113,000,000 to $180,000,000. During this
40 per cent, increase in foreign deposits Canadian notice and
demand deposits increased a little less than 4 per cent., and
total assets of all Canadian banks about 10 per cent.
Current loans and discounts elsewhere than in Canada are
always less than foreign deposits. On September 30, 1919, the
former were $151,000,000. On September 30, 1920, they stood
at $202,000,000, or about 57 per cent, of the foreign deposits
on that date. The idea that foreign expansion of our Cana-
dian banks would divert to other countries the capital urgently
required for Canadian development should by now be thorough-
ly discredited. It is interesting to note that at the time when
exponents of this theory were most numerous in Canada they
were also in force in the countries where our banks were lo-
cating, the only difference being that the contention of the citi-
zens of these countries reversed the Canadian viewpoint, since
thev claimed that the foreign banks in their midst diverted
THE MONETARY TIMES
Volume 66
local capital to the countries where the banks' head offices
were located.
Detailed figures of changes during the twelve' months end-
ing September 30th last are given below: —
All Canadian Chartered Banks — Fisures of Deposits, Etc.,
Elsewhere Than in Canada
Sept. 30,'19 Sept. 30,'20 Increase
Deposits $255,274,256 $355,238,992 $99,964,736
Current loans and dis-
counts 151,814,511 202,590,184 50,774,673
Due to banks and bank-
ing correspondents 37,433,749 63,667,391 26,233,642
Due from banks and
banking correspon-
dents 59,644,718 73,476,022 13,831,304
Call and short loans__ 169,532,489 186,962,960 17,430,471
Our Foreign Trade and Foreign Banking Status
Canada's foreign banking system is an organization sin-
gularly complete for a country of this size. It is perhaps lit-
tle realized how comparatively far advanced Canada is in this,
as in other aspects of our foreign relations. Argentina has as
large a population, Brazil a much larger one, yet, leaving for-
eign-controlled banks out of consideration, neither country has
anything approaching the foreign or domestic banking sys-
tems possessed by Canada. England's wonderful foreign
banking organization reached its present position after seven-
ty-five years of development. The United States, on the other
hand, had no real organization of this sort until after the com-
mencement of the war. The need for it was felt long before
it came into being; and the speed with which it had to be cre-
ated, joined to the lack of anj'thing to build on, greatly in-
creased the difficulties which have always to be faced by any
expanding organization.
A survey of Canadian foreign trade figures, from the
point of view of Canadian progressiveness, reveals a some-
what similar situation. In the fiscal year ending March 31,
1918, Canadian exports and imports were valued at over two
and a half billion dollars, or three hundred dollars per head of
our eight and a half million people. England's foreign trade
was $277 per capita during approximately the same period;
that of the United States — the enormous figures of which
have been given so much publicity — was only $97 per capita.
India and China, thickly populated but poorly developed, have
respectively a per capita foreign trade of $5 and $3 per annum.
The transaction of foreign business on this scale, and the
provision of facilities for financing the major portion of it, are
phenomena not ordinarily seen in a country of our size and
stage of development.
Export Trade
A year ago the surveys of 1919 which were being pub-
lished were able to review a year of unbroken prosperity.
Agricultural, manufacturing, wholesale and retail distributing
industries — all were on the crest of the wave; and if Cana-
dian foreign trade did not equal the record of 1918, it was still
very lai'ge, and showed a surplus of exports amounting to
three hundred million dollars for the year. In many lines the
question was more one of supply than of demand. So strong
was the buying power of the domestic market that export
trade was not of primary interest to many manufacturers,
though much was said and written about it. The present situ-
ation is far from being equal to that of last year. 1920 will
be a record year for some industries. Others have already
been hit by the slump. But all now realize that readjustment
is at hand and that the pi-ospects for 1921 are uncertain.
There will be more reason to cultivate export trade at a time,
however, when other countries will be suffering from the same
difficulties as ourselves. Competition will be keen, orders dif-
ficult to secure, and when secured should be accepted only
after a most careful investigation of the credit standing of the
intending purchaser.
What Canadian Banks Can Do
Our Canadian bank branches abroad are going to be of
great assistance in this period. They are ready to help Can-
adian industries and export trade in any possible way. The
supplying of information on foreign markets and conditions,
and on foreign exchange, is one of the first services they can
render. They ai'e often in a position to put Canadian manu-
facturers in touch with foreign importers. Any actual busi-
ness obtained naturally depends on the cost and quality of the
product. Canadian banks with foreign branches or affilia-
tions, by reason of being closely in touch with foreign condi-
tions are in a better position to discount their clients' documen-
tary drafts on recognized foreign houses than they would be if
they had confined themselves to domestic business, since it is
quite possible that they will know the foreign firm in question
or hold private reports on its responsibility. The most im-
portant service is, of course, the supplying of full credit infor-
mation on foreign houses to Canadian business men. The
necessity of obtaining this through doubtful or unfamiliar
sources would have a tendency to lessen the confidence of Can-
adian houses in the value of the reports and to increase the
difficulties of the Canadian manufacturer who was endeavor-
ing to book foreign orders. Happily this necessity does not
exist as far as many countries are concerned. Canadian firms
are at liberty to take full advantage of the facilities offered.
No charge is made, nor, as far as we know, is there any stip-
ulation that enquirers should be clients of the bank concerned.
RURAL CREDITS MOVEMENT GROWS IN MANITOBA
Twenty New Societies Organized in 1920, and Loans
More Than Doubled
MANITOBA'S rural credit system had another year of ex-
pansion in 1920. This is the only province which has
such a system in active operation, but some of the other prov-
inces have taken steps in this direction. Ontario appointed
a commission last year to enquire into the subject, and a re-
port is expected shortly. Regarding progress in 1920, C. N.
Gifford, supervisor of the Manitoba system, said in a state-
ment to The Monetary Times: —
"The Manitoba Rural Credits Act has been in force about
three and a half years. The following table shows the growth
in the number of societies and the business done: —
Amount of
Year No. of societies loans granted
1917 1 $16,600
1918 10 215,581
1919 38 1,051,876
1920 58 2,480,345
More Being Formed
"While we have only 58 societies in actual operation there
are ten more to which charters have been issued, and which
are in the formation stage. The number of farmers who are
members of the societies would be slightly over 4,000, with
510 directors.
"A combined financial statement of the 38 societies doing
business in 1919 shows them with an authorized capital of
$760,000, a subscribed capital of $429,950, and a paid-up cap-
ital of $64,175. Of the unpaid capital $168,000 represents the
balance on their shares which the pro\'ince of Manitoba and
the rural municipalities can be called on for; $58,573 of the
paid-up capital is invested in municipal, school district and
government bonds.
"The societies operate on a 1 per cent, margin; after pay-
ing all expenses they show a net profit of $3,200. After a
society has been operating two years they cannot only pay all
expenses but show a good surplus, which is being used to
create a reserve fund to take care of any loans that might
occur. So far not one dollar has had to be written off.
"During 1920 part of the loans were carried by the banks,
but the largest part of the funds for loaning were borrowed
by the societies from the provincial government.
"Our loans are practically all due in December. We have
due up to November $130,000. To date (November 19th) our
collections amount to $124,780."
January 7, 1921
THE MONETARY TIMES
Bank Loans in Relation to Deposits
Loans in Canada Increased by $359,000,000 — While Increase in
Deposits Was Only $79,000,000— This Demand for Funds Naturally
Strained Banking Facilities — All Classes of Borrowers Affected
By O. A. HARPER
Manager, Sterling Bank, Winnipeg, Man.
*' A RE we going to let the east shut off our credit like
■^*- that?" or words to that effect, is a question recently
asked the writer by a man well versed in business. We were
discussing the affairs of a certain wholesaler whose matur-
ing payments were being demanded by eastern manufac-
turers. To all appearances he is solvent but requires an ex-
tension of time to meet payments. He has not been able to
sell or collect for his stock as expected. Trade is dull in
his line and his shelves are full in the face of falling prices.
This question expresses a sentiment that is causing a
sectional division in the Dominion which, if allowed to grow,
will seriously retard recovery from a trade depression felt
in east and west alike. Is it reasonable ?
Stringency is a General Condition
One cannot lend what he does not have. Working from
this premise, examine the financial condition of the country
which is reflected in the loans and deposits of the chartered
banks. Some of the figures given in The Monetary Times of
November 5 may well be repeated. These figures show that
neither eastern manufacturer, western wholesaler, banker,
nor any other individual, class or section, is alone respon-
sible for the present tight money condition. The mass of the
people as a whole are responsible. They must produce more
than they consume and save substantially before they can
expect increased credit facilities.
The last government return of the banks available at
time of writing is up to the end of September, and figures
of demand or current account and savings bank deposits for
the preceding twelve months are as follows: —
Deposits payable Deposits payable
on demand. after notice.
1919— September . . $650,743,015 $1,227,4.37,715
October 705,280,241 1,262,746,984
November 728,657,589 1,137,858,277
December 703,329,292 1,138,086,691
1920— January 621,408,024 1,163,297,037
February 620,069,555 1,187,027,307
March 657,412,028 1,197,719,570
April 652,918,760 1,209,573,990
May 645,957,229 1,229,073,515
June 659,622,583 1,243,700,977
July 639,415,025 1,253,170,443
August 640,361,707 1,261,647,732
September 677,286,905 1,270,194,097
It will be noted that there is an increase in demand de-
posits for the year, of almost $27,000,000, but as these funds
are for immediate current use, they cannot be relied on by
the banks as a basis for extending credit. Notice or savings
bank deposits show an Increase of almost $53,000,000, mak-
ing a total increase in deposits of only $79,000,000. As
against this, note the following figures for commercial loans
for the same period: —
Current in Call in
Loans. Canada. Canada.
1919— September $1,058,572,202 $ 96,912,709
October 1,104,940,160 100,549,390
November 1,189,408,423 121,754,469
December 1,207,109,046 125,888,760
1920— January 1,226,962,963 132,015,334
February 1,257,015,902 127,251,919
March 1,322,267,030 128,233,310
Current in Call in
Loans. Canada. Canada.
April 1,347,238,230 125,644,859
May 1,349,079,981 119,114,493
June 1,365,151,083 115,272,587
July 1,377,276,853 115,360,894
August 1,385,470,153 113,598,923
September 1,417,520,756 114,669,611
Loans Have Outrun Deposits
There was an increase in commercial loans in Canada
for the twelve months of $359,000,000, as against the in-
crease in total deposits of $79,000,000. Total commercial
loans amount to $147,000,000 more than the total savings
bank deposits. The answer to the thought underlying the
opening question of this article is contained in these figures.
Commercial loans in one year have increased $280,000,000
fa-ster than all deposits, and new loans cannot be extended to
develop future business unless promises to repay are kept
as they mature. The eastern manufacturer is in the same
position as the western wholesaler and every one else. He
must pay his bills as they fall due or business as a whole
must slow up or halt.
Where has this money to increase the loans come from
and who borrowed it? are two questions often asked.
Have Reduced Security Holdings
In answer to the first, I would point out, the bank state-
ment referred to show the banks have withdrawn $267,000,-
000 during the year from Dominion and provincial govern-
ment, municipal and other securities. The banks had pre-
pared for a readjustment period after the war. Even after
withdrawing the above amount from their liquid assets they
are in a very strong position, but they cannot continue to con-
vert their immediately available assets into commercial
paper and at the same time remain in a sound banking con-
dition. The baJance of the increase in commercial loans,
$20,000,000, was obtained from various sources in compara-
tively small amounts.
Who borrowed this money? The popular opinion is that
the profiteer has it to enable him to hold goods or grain for
exorbitant profits. No one considers himself the profiteer, so
all are ready to share the popular opinion and blame the
other fellow.
The manufacturers and the wholesalers always have
used a share of the loans, and it is natural to assume that
in the face of higher prices their loans are considerably
larger than in pre-war times. But as all loans and deposits
have grown since those good old days, it does not follow that
they have a larger proportion than formerly.
Loans to Farmers Have Grown
The farmers, and especially the western farmers, have
always required large credits during the spring, summer and
early fall seasons. There are good reasons for assuming
that this fall they have a larger proportion of credit than
usual.
First, — They have been operating under higher costs of
seed, labor and all the incidental expenses that enter into
farming.
Second, — Some sections of the western provinces have
had as many as three years' bad crops in succession. The
THE MONETARY TIMES
Volume 66
result is that loans in these sections have had to be carried
over and increased from year to year.
Third, — In these districts of bad crops, where farmers
were not in a position to warrant increased loans, the
governments or municipalities have assisted them to obtain
credit, with the result that many such loans have increased
and still remain unpaid.
Fourth, — The farmers depended on higher prices this
fall and had obligated themselves accordingly. Now, with
the prices down, many of them cannot realize enough to pay
all their debts, and many more refuse to sell their crops at
prevailing prices, with the result that neither their merchant
nor their banker is paid. The merchant must ask an exten-
sion from the wholesaler, who in turn asks an extension
from the manufacturer and thus all are prevented from re-
ducing their indebtedness. This latter condition also arises
from many other small consumers not meeting their local
bills promptly.
No analysis of loans as to the occupation or district of
borrowers is available, but if such an analysis could be made
it is fairly certain that the increased loans resulting in tight
money would be found to be spread over a^ll classes and
businesses, farmers included. Thus, instead of the blame
being placed on the east or the manufacturer, it would fall
on the public as a whole, who are not saving sufficient of
their production to develop a young and growing country.
No man can lend what he has not.
Dominion Note Circulation Around $300,000,000
Went Down in Midsummer But Rose Again in Autumn— Gold Reserve
is $27,000,000 Less Than Last Year — Securities Held Against
Dominion Notes Outstanding— Currency and the Movement of Prices
/CANADA'S government issues are based on a gold reserve,
^ the ratio of which, however, through the exigencies of war
finance, has been considerably reduced. The Dominion Note
Act of 1914, by which the issue is authorized, permits an issue
of $50,000,000 in the first instance against a reserve of 25 per
cent, of this amount in specie, any additional issue to be cov-
ered by an amount in gold equal to any issue in excess of
$50,000,000.
These requirements were modified subsequently by the
necessity of providing funds in connection with- the taking
over by the government of the Canadian Northern and the
Grand Trunk Pacific Railways. Sixteen million dollars was
required for this purpose and another $10,000,000 to meet
maturing obligations of the government in connection wit!
the war.
For the $16,000,000 securities of these railways are held
but are not included in the list of approved securities reported
in the government returns as held against issues of Dominion
notes. Virtually, therefore, issues of $76,000,000 are author-
ized against a reserve of $12,500,000 gold, or an uncoverec
issue of $63,500,000.
While the act calls for gold equal to any additional issue,
the Finance Act of 1914 permits advances to banks by the
issue of Dominion notes against approved security. This has
undoubtedly been availed of to a considerable extent in order
to provide the additional currency required to handle the bus-
iness of the country at the prevailing high prices. No exact
details, however, of the amount so advanced are given in any
of the returns published by the government, these advances
being apparently included in "Balances due to Dominion gov-
ernment after deducting advances for credits, pay lists, etc."
in the monthly bank statement.
Considerable Inflation
While there is ample security for the issue the ratio of
actual gold held has decreased materially since 1914, and as
the basis of our currency is gold, there is consequently infla-
tion in proportion to the decrease in the ratio of specie actu-
ally held. Considering, however, the strain on the finances of
the country by the war, as well as by the consequent disloca-
tion of trade, it is a tribute to the soundness of Canada's
financial position that this inflation is not far greater. To
realize this it is only necessary to compare the position of
Canada's currency with that of other nations. The value of
cux-rency compared with commodities, as shown in the whole-
sale prices current in different countries is a reasonable indi-
cation of the inflation of the currency. The September Com-
mercial Letter of the Canadian Bank of Commerce gives the
rise in these prices since 1914:
Per cent.
$92,000,000
81
89,000,000
59
114,000,000
65
119,000,000
67
114,000,000
41
118,000,000
39
Per cent.
Canada 150
Austr-alia 112
United States 112
United Kingdom 200
France 300
Italy 400
In France and Italy the percentage in the early part of
the year was considerably higher.
The government issues and the specie held against them
at the close of the fiscal year since 1914 were as follows:
1914 $114,000,000
1915 ^^— 152,000,000
1916 175,000,000
1917 178,000,000
1918 281,000,000
1919 229,000,000
In considering, however, the gold reserves of the country
and the outstanding circulation, the bank issues and the gold
held by them must be taken into consideration.
The total of Dominion notes outstanding over the period
of 13 months ended October 31, 1920, with the gold resei-^'e
and the amount issued against securities, is shown by the fol-
lowing table:
Notes Against
Securities
$146,020,000
162,957,000
154,237,000
$149,289,375
151,064,375
157,566,725
154,262,225
146,056,725
138,036,125
139,749,125
138,437,125
149,620,125
166,715,125
1919 — Total
October $311,639,746
November 328,010,829
December 318,690,089
1920 —
January $303,678,278
February 305,404,160
March 311,932,791
April 309,142,651
May 300,241,483
June 292,016,290
July 293,541,399
August 292,086,025
September 303,065,376
October 320,012,915
Gold Reserve
$122,633,554
123,719,093
114,821,962
$105,165,301
105,609,980
100,286,280
101,636,652
102,495,683
99,619,182
95,510,383
95,183,753
95,205,901
95,222,381
Since the inauguration of the drainage scheme in Mani-
toba, it is estimated that 3,200,000 acres of land, believed to
be unsuitable for agriculture, have been brought under culti-
vation.
January 7, 1921
THE MONETARY TIMES
45
siiiiiiiiinniuiiiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiininiiiiiiiiiiiiiiiiiiiiiiiiiiiNiiiin^
{ The Royal Bank of Canada
INCORPORATED 18 69
CAPITAL AUTHORIZED
CAPITAL PAID-UP -
$25,000,000
$20,000,000
HEAD OFFICE
RESERVE FUND
TOTAL ASSETS
MONTREAL
$20,000,000
$580,000,000
JA.S. REDMOND
G. R. CROWE
D. K. ELLIOTT
HON. W. H. THORNE
HUGH PATON
BOARD OF DIRECTORS
SIR HERBERT S. HOLT, President E. L PEASE. Vice-President
A. J. BROWN, K.C. SIR MORTIMER B. DAVIS W. H. McWILLIAMS
W. J. SHEPPARD G. H. DTTGGAN CAPT. WM. ROBINSON
C. S. WILCOX C. C. BLACKADAR A. McTAVISH CAMPBELL
A. E. DYMENT JOHN T. ROSS ROBERT ADAIR
C. E. NEILL R. MacD. PATERSON T. SHERMAN ROGERS, K.C.
E. L. PEASE, Managing Director
C. E. NEILL, General Manager
M. W. WILSON, Supt. of Branches
715 BRANCHES IN CANADA, NEWFOUNDLAND, WEST INDIES, &c.
BRANCHES IN CANADA AND NEWFOUNDLAND
Alberta - - 47 Ontario - - - 186
British Columbia - 53 Prince Edward Island 11
Manitoba - - 41 Quebec - - - 61
New Brunswick - 26 Saskatchewan - - 107
Nova Scotia ■ - - 74 Newfoundland - - 10
BRANCHES IN WEST INDIES
Cuba— 47 Branches. Havana. Santiago, etc.
Porto Rico— San Juan, Mayaguez. Ponce.
Dominican Republic— Santo Domingo, etc. ((i br:
Guadeloupe— Basseterre and Pointe-a-Pitre.
Martinique— Fort de France and Trinite.
Haiti— Port au Prince and Aux Cayes
Antigua— St. John's.
Bahamas— Nassau.
Barbados— Bridgetown and Speightstown
Dominica— Roseau.
Grenada— St. Georges.
Jamaica^Kingston, Cross Road
Montserrat— Plymouth.
Nevis— Charlestown.
St. Kitts— Basseterre.
St. Lucia — Castries
Tobago— Scarborough .
dSpanishTovvn. Trinidad — Port of Spain, San
Fernando and Sangre Grande.
BRANCHES IN CENTRAL AND SOUTH AMERICA
Argentine— Buenos Aires.
British Honduras — Belize.
British Guiana^Georgetown.'Ne
Brazil— Rio de'Janeiro. Santos and Sao Paulo.
Colombia— Barrang uilla.
sterdam and Rose Hall. Venezuela— Caracas, Ciudad Boli'
Uruguay — Montevideo.
Costa Rica— San Jose,
iracaibo and Puerto Cabello.
SPAIN— BARCELONA, Plaza de Cataluna, 6
GREAT BRITAIN:
LONDON - - - Princes St., E.C
T. R. WHITLEY, Manager. JAS. MACKIE, Joint Manager
FRENCH AUXILIARY:
THE ROYAL BANK OF CANADA (FRANCE), PARIS— 28 Rue du Quatre-Septembre
UNITED STATES:
NEW YORK ... 68 William St.
F. T. WALKER, J. A. BEATSON,
E. B. McINERNEY and G. M. TODD, Agents
PRINCIPAL CORRESPONDENTS :
GREAT BRITAIN— Bank of England.
London County Westminster and Pilrr's Bank, Ltd.
Bank of Scotland.
London Joint City and Midland Bank. Ltd.
UNITED STATES New York-Chase National Bank.
[^ American Exchange National Bank.
Chemical National Bank.
Bank of the Manhattan Co.
Boston— National Shawmut Bank.
First National Bank.
Chicago— Continental & Commercial National Bank.
Philadelphia— Philadelphia National Bank.
Minneapolis— First National Bank.
UNITED STATES San Francisco— First National Bank.
Buffalo- Manufacturers & Traders National Bank.
New Orleans— Canal Commercial Trust & Sav. Bk.
London County Westminster & Parr's Bank. Lt
Banco Calamarte
Credito Italiano.
Banco di Napoli
Hongkong and Shanghai Banking Corporation.
INDIA, CHINA
AND JAPAN
AUSTRALASIA
Bank of New South Wale
^iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniinuiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiNiiiiiiiiiiiHiiiiiiiiiiiiiiiiuiiiiiiiiiuiiiiininuiniiiiiiiiiiiiiiiiiiii^
46
THE MONETARY TIMES
Volume 66
RECORD OF INTERNATIONAL EXCHANGE QUOTATIONS, 1914-1920
(Compiled for The Monetary Times by the Foreign Department, Canadian Bank of Commerce)
Months and Years
1914
July
August
September .
October
November . .
December . .
1915
January
February . . . .
March
April
May
June
July
August
September .
October
November
December. . .
1916
January
February .. . .
March
April
May
June
July
August . . . . .
September . .
October
November . .
December. . .
1917
January
February .
March
April
May
June
July
August
September .
October ...
November .
December. . .
1918
January . . . .
February . .
March
April
May
June
July
August
September . .
October . .
Novembr*r . .
December. . .
1919
January . . . .
February . . .
March .
April .
May
Jun'e
July
August .
September .
October . .
November
New York
Funds in Canada
High
I's P
i% D
Par
A P
Vs P
1 P
if P
II P
16 '^
H P
it P
U P
A P
14 P
/8 P
sV P
A P
1^
1^
m
2H
2A
2 '
December ,11
2>i
2tV
2|3
^H
2f
3
Sj
4
5X
IX n
1'4 D
% D
Par
A P
Par
A D
.\ D
A P
? P
jV P
A P
/^ P
A P
A P
X
Par
h P
p
p
ih P
A D
6 P
/i P
A D
if D
A D
A P
a
63
m
1#T
1 jj
lit
2
Demand
Sterling
High
492.00
607 50
50e.00
497 50
490.65
489.15
485.05
484.70
481.15
479 80
479.80
478.45
476.75
476.25
471.87
472.37
471.37
473.65
478.00
476.50
476 . 94
476.56
476.31
476.94
475.87
475.87
475.75
475.68
476.68
475.68
475.85
475.80
475.56
476.00
475.62
475 . 55
475.70
475.56
475.50
475 . 38
475.25
475.25
475.33
475.31
475.40
475.52
475 . 50
475.43
475.3.'i
476.06
475.50
475.52
476.00
475.70
475.85
475..80
475 . 70
468.00
468.75
463.25
457.25
435.75
426.25
4-25.25
416.75
.399 75
485.30
5OH.00
495.25
489.40
486.85
485.00
483.95
+79.15
478.55
478 . 90
478.25
475.85
476.00
455.00
454.00
461.62
463.50
470.25
473.63
475.81
475.87
476.31
475.50
475.06
475. «9
475.75
475.69
475.37
475.56
475.45
475.56
475.33
475.12
475.31
475 . 45
475.37
475.37
475.55
475.30
475.19
475.19
475.19
475.12
475.25
475.25
475.37
475.43
475.30
475.18
475.31
475.43
475.43
475.50
475.00
475.70
475. 7< I
475.25
458.50
462.00
458 . 62
430 . 87
412.00
412.75
414.25
400.50
367.25
(France) Francs
High Low
505 516%
No quotations
506 I 510
505 515
510
511X
516^
5I8-4'
525 ys
531;^
531%
543
553
564
576
579
582}4
5S3)4
583>^
586
587 54:
592^2
591 X
5903^
59034-
589
583
583V
584X
583>^
584 X
584 J^
584^
568
570>i
572 X
573
576X
577
571 X
573 >^
572^-
570
571^
571%
569>i
571f^
569 X"
544?^
546X'
54fi^
539
545J^
545H
545,!^
546;^
.S89
606X
628
649
727
782
836
515%
517
519^
528
532X
532X'
543
570
570^"
602
601
598X
599
588
588
590>^
598
607
594>i
592X
591-^
592
585 X
584X
586
584 X
585 >i
585 K
5Si<4
573^
578
679 X
578 >i
580
579;^
576X'
574 "4
573 X
572;^
573
572%
57114
571 X
571^8
56i'>^
549X
548 ,\
547>^
545|i
.546%
547 ^^
P06
610
671
650X
735
826
924
880
980
1178
(Holland) Guilders
High
40X' I 40,-\
No quotations
No quotations
No quotations
40% 40>^
40% 40X
40A
40A
40
39%
39A
40
40%
40t^!
40%
41%
42
43X
44%
42%
42ii
43%
41il
41X
41X
41%
41A
41A
41
40%
40ii
40i?
40A
41H
41 X
41X
41A
42X
42%
45X
45%
44X
43X
45X
46X
47%
50%
51
51%
52>^
50X
47
42%
42%
41%
41%
40%
40A
39 Vi
38tti
37t%
38^
38%
38
38%
40
39%
39X
39A
39%
39A
39%
39%
39%
40%
41%
41%
42%
41ii
42
40%
41A
41%
41%
40X
40]f
40U
40H
40i|
40A
40X
40A
40it
40iS
41%
41X
41%
42
43%
43%
42 X
43%
44%
46
47X
49X
50
50X
46X
41X
41%
42
40%
40ii
39%
40
.39
38%
36%
36X
36%
37%
37X
37%
(Italy) Lire
(Norway) Kroner
High
516% 518>
No quotations
No quotations
No quotations
533 1 540
524 536
533%
542%
563
576%
575
591
609
620
615
622
643
651%
653
667%
652
631
647
635
637X
642
641^"
646
664
673
687
709
762
687
701
703%
719%
723
751
772
795
842
831
857
795
876
801
636
631
637
637
636
636%
636%
636%
705
748
780
785
860
947
968
1077
1214
544
580
595
589
592
616
640
652
652
646
651
660
678
676
671%
662%
621
641%
649%
648%
648
666
674%
691%
720
756
785
768
706
736
726%
749%
779%
795
895
791
858
877
892
901
9lS%
911
881
801
637
637
637
637
637
637
785
758
875
817
879
968
1014
1082
1270
1347
High
26.75 I 26.72
No quotations
No quotations
No quotations
26.00
25.00
25%
25.00
25%
243X
25.00
24%
25.30
24%
25.90
25.05
26.30
25.75
26.55
26.20
26 35
25.60
26.25
25.40
26.25
25.25
26.30
25.65
29.00
26.10
29.00
27.00
28.10
27.35
28.30
27.55
28.95
28.10
30.35
29.00
31.25
29.60
31.00
28.00
29.20
28.05
28.80
28.40
28.75
28.10
28.35
27.65
27.75
27.66
28.15
27.70
28.10
27.90
28.00
27.90
29.30
28.05
29.70
28.30
29.40
29.10
29.50
29.00
30.75
29.25
31.00
30.00
31.30
30.30
35.50
31.13
37.50
33.00
33.50
31.60
32.75
31.00
32.00
30.25
31.50
29.87
32.12
31.25
31.55
30.75
31.60
31.20
31.40
31.20
31.45
30.90
31.00
31.40
29.80
27.20
27.40
26.80
28.00
27.40
28.00
27.00
27.35
27.00
27.20
25%
26.05
25.60
25.60
24.70
25.60
24.65
24.75
23.40
.23.70
22 90
23.50
22.65
23.25
22.55
23.55
21.40
21.55
17.65
January 7, 1921
THE MONETARY TIMES
47
THE CANADIAN BANK OF COMMERCE
Statement of the result of the business of the Bank for the
year ending 30th November,, 1920
Balance at credit of Profit and Loss Account brought forward from last year $ 1,427,735 40
Net Profits for the year ending 30th November, after providing for all bad and doubtful debts 3,306,243 97
$ 4,733,979 37
This has been appropriated as follows:
Dividends Nos. 132, 133, 134 and 136, at twelve per cent, per annum $ 1,800,000 00
Bonus of one per cent., payable 1st December 160,000 00
Dominion and Provincial Government taxes and tax on bank-note circulation 360,000 00
Written off Bank Premises 600,000 00
Transferred to Pension Fund 160,000 00
Balance carried forward 1,783, 9f9 37
$ 4,733.979 37
GENERAL STATEMENT, 30th November, 1920
To the Public- LIABIUITIES
Notes of the Bank in circulation !
Deposits not bearing interest $108,813,028 52
Deposits bearing interest, including interest accrued to date 286,066,493 06
Balances due to other Banks in Canada
Balances due to Banks and Banking Correspondents
Bills Payable
Acceptances under Letters of Credit
To the Shareholders —
Dividends Unpaid
Dividend No. 135 and bonus, payable 1st December.
Capital Paid up
Rest Account
Balance of Profits as per Profit and Loss Account . .
393,878,521 57
792,301 63
10,640,517 £3
1,139,863 90
11,204,565 81
$448,372,665 02
$15,000,000 00
15,000,000 00
1,783,979 37
ASSETS
Gold and Silver Coin Current on hand $15,992,107 21
Gold deposited in Central Gold Reserves 6,500,000 00
31,783,979 37
$480,760,624 51
Dominion Notes on hand $35,388,710 26
Dominion Notes deposited in Central Gold Reserves 10,000.000 00
$ 22,492,107 21
45,388,710 25
Notes of other Banks $ 2,482,865 00
Cheques on other Banks 25,846,697 22
Balances due by other Banks in Canada ."■ 100 00
Balances due by Banks and Banking Correspondents elsewhere than in Canada 11,290,555 29
Dominion and Provincial Government Securities, not exceeding market value
British, Foreign and Colonial Public Securities and Canadian Municipal Securities, not exceeding market value
Railway and other Bonds. Debentures and Stocks, not exceeding market value
Call and Short Loans (not exceeding 30 days) in Canada on Bonds, Debentures and Stocks
Call and Short Loans (not exceeding 30 days) elsewhere than in Canada
Deposit with the Minister of Finance for the purposes of the Circulation Fund
$ 67,880,817 46
Other Current Loans and Discounts in Canada He;
Other Current Loans and Discounts elsewhere than
Liabilities of Customers under Letters of Credit, a
Overdue Debts (estimated loss provided for)
Real Estate other than Bank Premises
Mortgages on Real Estate sold by the Bank
Bank Premises at cost, less amounts written oflE
Other Assets not included in the foregoing
rebate of interest)
1 Canada (less rebate of interest)
per contra
39,620,217 51
13,101,656 80
20,737,620 72
6,059,204 45
21.434,844 02
34.274.934 06
908,245 56
$204,017,440 58
231,114,772 74
26,863.226 72
11.204,565 81
147,916 91
514.901 60
190,501 63
6,617.095 06
90,213 66
$480,760,624 51
B. E. WALKER, President.
Report of
JOHN AIRD. General Manager.
Shareholders of The Canadian Bank of Commerce.
of the Bank Act. 1913. we report as follows:—
and vouchers at Head Office and with the certified
that we have required, and are of the opinion
powers * " ~
Auditors to
In accordance with the provisions of sub-sections 19 and 20 of section 56
We have audited the above Balance Sheet and compared it with the books
returns from the branches. We have obtained all the information and explanatic
that the transactions of the Bank which have come under our notice have been
We have checked the cash, and verified the securities representing the investments of the Bank, at its chief office and principal
branches at a date other than that of the verification at the chief ofiice on the 30th November, 1920, and found that they were
in agreement with the entries in the books of the Bank relating thereto.
In our opinion the Balance Sheet is properly drawn up so as to exhibit a true and correct view of the state of the affairs of
the Bank according to the best of our information and the explanations given to us, and as shown by the books of the Bank.
T. HARRY WEBB, C.A., \
of George A. Touchc & Co. I A„j:,r.r=
JAMES MARWICK, C.A., f -*"°™'^=-
of Marwick, Mitchell & Co. '
48
THE MONETARY TIMES
Volume 66
RECORD OF INTERNATIONAL EXCHANGE QVOTATIONS—Conimued
Months and Year
1920
January
Kebruarv
Man-h
April..
May.
June
July
August
September
October
November
Dec. (to Dec. 2i).
New York
Funds in Canada
High
13
ITA
ibH
i\'4
12H
ISA
I4H
1*A
n%
11^8
14tV
12A
9
9>^
12A
12t\
9X V
8X P
W% P
13^8 P
Demand
Sterling
High
379.00
348.00
395.25
402.25
390.75
399.25
395.75
372.00
356.50
350.75
348.75
353 . 50
349.25
324.00
341.00
376.00
380.75
388 . 50
374.25
354.87
344.75
340.50
334.00
343.00
(France) Francs I (Holland) Guilders 1
High
10.77
13.20
13.10
14.50
12.20
11.62
11.60
13.07
14.25
14.87
15.80
16.34
13.35
14.85
14 98
17.00
16.67
13.22
13.25
14.50
15.47
15.80
17.30
17.23
High
39K
38X
37X
37^
36^
Z&H
Zby^
34X
32H
3liV
30^
ZIH
37^8
36^
36 >i
36 )i
36 X
35X
^i%
31>^
30 f^
30^
29;^
30>g
(Italy) Lire
High
13.21
15.67
17.22
20.45
16.37
15.82
16.17
18.60
21.32
23.94
25.70
26.90
15.52
19.32
20.52
26.12
22.22
18.37
18.77
21.92
24.05
26.74
29.50
28.78
(Norway) Kroner
High
20.30
17 60
19.40
22 00
19.25
18.20
17.00
15.70
14.53
14.40
13.60
15.00
17.55
16.80
17.00
19.15
18.00
16.50
15.70
14.10
13.25
13.40
13.05
13.50
NET PROFITS AND DIVIDENDS OF CANADA'S BANKS
(l)Bank of Montreal 1,797,993
§Quebec Bank 1 278,926
Bank of Nova Scotia ! 662,302
(2) Bank of British North America I 554,942
Bank of Toronto I 589,656
The Molsons Bank i 602,694
La Banque Nalionale 257,917
(3) Merchants Bank ol Canada , 1,057,140
Banque Provinciate du Canada 149,062
Union Bank of Canada 451,620
Canadian Bank of Commerce 1,838,065
(4)Royal Bank o( Canada 951,336
Uominion Bank 659,300
(5)Bank of Hamilton 422,090
••"•-" ■ • 373,208
417,697
532,353
702,508
95,832
! 258,144
I 96,825
Standard Bank of Canada
Banque d'Hochelaga
(6) Bank of Ottawa
Imperial Bank of Canada.
Home Bank of Canada. .
(7)Northern Crown Bank...
Sterling Bank
(8)\Veyburn Security Bank..
(l)Bank of Montreal
§Quebec Bank
Bank of Nova Scotia
(2)Bank of British North America.
Bank of Toronto
The Molsons Bank
La Banque Nationale
(3)Merchants Bank of Canada . . . .
Banque Provinciale du Canada.
Union Bank of Canada
Canadian Bank of Commerce . .
4) Royal Bank of Canada ...
Dominion Bank
(5)Bank of Hamilton
Standard Bank of Canada
Banque d'Hochelaga
(6)Bank of Ottawa
Imperial Bank of Canada. .
Home Bank of Canada. . .
(7)Northern Crown Bank
Sterling Bank
(SlWeyburn Security Bank
2,108,631
233,420
1,220,057
328,595
663,074
556.193
333,207
995,431
196,355
659,688
2,352,035
1,905,576
805,123
424,274
563.401
530,237
531,268
1,031,359
133,406
100,789
145,290
53.844
%
10
7
12
7
10
10
8&9
5
7
9
11&12
12
10
12
8
lOJ
11
6
5
5
Di\
%
10 + 2
7
14
11
11
8
10
7
8 + 1
10 + 2
12
12
12
13
9
12
12
5
Nil
6
JIO
$
2,276,519
276,392
815,519
632,117
677,964
712,539
202,613
1,179,581
184,398
662,437
2,305,409
1,152,249
704,045
443,506
381,601
415,000
595,228
841,692
121,941
285,694
107,876
26,682
2,200,471
1,252,038
546,346
730,954
582,356
417,662
950,713
203,983
651,183
2,439,415
2,111,307
893,502
442,525
580,230
546,011
591,205
1,003,960
217,059
128,761
161,270
82,149
%
10
13&14
8
11
11
7
9 & 10
5
8
10
12
12
11
13
9
11
11&12
6
5&6
5
2i
2,518,409
294,804
970,544
678,506
835,787
684,779
293,564
1,338,844
185,165
706,832
2,811,806
1,527,324
901,529
495,860
462,079
481,616
640,220
1,004,340
140,030
291,094
113,400
63,135
%
10+2
7
14
8
11 + 1
11
7
10
6
8
10 + 1
12
12 + 2
11
13
9
111
12
6&7
6
6
5
S
2,648,403
309,228
1,210,774
689,745
* 1,050,693
694,356
302,304
(A) 533,653
19c,126
750,095
2,992,951
2,142,100
950,402
498,273
555,095
534,700
706,740
1,125,971
167,1-25
281,167
114,200
54,917
Divi-
dend
%
10 + 2
2,477,969
14
7
11
11
8
10
7
8+1
10 + 2
12
12
12
13
9
12
12
5
1,295,
"668,
802,
615,
435,
1,236,
207,
763
2,63
2,327
1,005,
598
649,
565
616
1,185,
228
t208,
186
74,
315
003
920
514
283
680
483
,463
,555
979
062
,522
546
,433
238
,066
,963
608
120
274
Divi-
dend
%
10+2
14
8
11
11
9
10
7
8 + 1
10+2
12
12
12
13
9
12
12
2,562,720
1,411,925
844,402
712,485
533,450
1,383,569
434,594
824,174
2,850,318
2,809,846
1,086,498
571,226
697,443
595,187
645,347
1,247,516
238,753
%
10 + 2
7
14
8
11 + 1
11
8
10
6
8
10 + 2
12
12 + 2
12
13
9
12
12
7
6
%
10+2
14
11
11
9
10
7
10
10 + 2
12
12
12
13
9
12
12
5
213,632
. 74,343
2,496,452
296,659
1,196,117
536,577
829,538
608,196
, 319,903
1,218,694
1^4,214
712,440
2,668,233
1,886,142
925,364
485,265
621,463
566,614
620,691
1,236,984
163,929
201,289
115,111
48,. 354
3,314,227
1,926,478
1,011,359
818,802
567,372
1,686,156
b) 333,882
932,256
3,074,892
3,423,264
1,169,703
847,104
776,310
611,105
1,379,318
268,895
251,346
62,220
16
12
12
10
12+1
8
, 10
12
12+2
12+1
12
13
10
12+1
6
(1) Prior to 1904 the Bank of Montreal's year ended in April. The profits during
1911 include ?708.800 expended in premises and those of 1912. $.511,000; in
penditures were deducted. 2% bonus since June,
previous years
1912.
(2) Figures for 1912
(3) 1913 figures
these
ire from Jan. l.st to Nov. 30th inclusive.
.„,„ ..i.„.^o ».- for 5 months ending 30th April. 1915 figures are for year
April. 1915 Net profits for year ending April. 1916. $970,713. Dividend, 10%.
(41 1912 figures are for 11 months ; financial year changed.
{f,") The 1917 figures are for the 15 months ended 28th February. 1918.
(6) The Bank of Ottawa was absorbed by the Bank of Nova Scotia in May, 1919.
17) 1912. profits are for 11 months.
(8) Weyburn Security Bank commenced business only in 1911.
X 5% cash dividend and 5% stock dividend.
* Including 8200.000 debts recovered.
§ The Quebec Bank was purchased by the Royal Bank of Canada on Dec.Slst. 1916.
and did not issue a statement showing the result of its business for that year.
Dividends amounting to 8191.450, being at the rate of 7% per annum, were
paid during the year.
1a) Result of business for 5 months only.
(ii) Figures for the previous period were for 18 months. There was a proportion-
ate increase of 844.512 on a twelve months' basis.
♦* Absorbed by the Bank of Montreal, March, 1918.
t Purchased by the Koyal Bank. June 30th, 1918. who paid 10.883 fully paid
shares of the capital stock of the Royal Bank, and $576,970 in cash.
January T, 1921 THE MONETARY TIMES
lllllllilHIIIillllllillllllllililllilllMllllllllillllllillllllllllllllllllllMlllililllllllllllllllllilllllllllH^
ESTABLISHED
giliiiiiiiniiiiiiiiiililiiililiiiiiiiillllllllllliuitlllliiiiiliiiilliiii^
\
^lllilllllllllilllllll lllllillllillllllllllllllllllllllllllltllllIrT:-
Coinnionwealtb Bank of Hustralia
acts as bankers to the Commonwealth Government and State Governments of South
Australia, Western Australia and Tasmania.
All classes of GENERAL and SAVINGS BANK business are transacted in all the prin-
cipal cities and towns of Australia, Rabaul and London.
Banking and exchange business of every description transacted within the Common-
wealth, United Kingdom, Canada, U.S.A. and abroad.
JAS. KELL, DENISON MILLER,
Deputy Governor 1920 Governor
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This Advertisement |
will be read frequently throughout the year 1921 by thousands of i
Canada's wealthiest and best-known financiers, manufacturers and 1
merchants. ■
Your message, if inserted in this space, would have been read not 1
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50
THE MONETARY TIMES
Volume 66
Canadian Gold Stocks Decreased During Past Year
Government Held $100,000,000 On October 31, While Banks Held $80,000,000 in Gold
and Subsidiary Coin — Record of Holdings During Past Months — World's Declared
Holdings Reached Maximum at End of 1918 — Movement Towards East in Recent Years
PRACTICALLY all the gold in Canada is held by the Do-
minion government and by the chartered banks. The
totals shown in the monthly statements of the banks to the
government, and in the latter's own monthly statements of
circulation and gold reserve, have decreased during the past
year. These totals are shown below. In the case of the
banks, subsidiary coin is included.
Gold Reserves of Dominion Government
Gold held for
redemption of Reserve for
1919 — Dominion notes. savings department. Total.
October $122,633,564 $4,667,887 $127,301,441
November 123,719,093 4,493,216 128,212,310
December 114,821,963 4,389,872 119,211.834
1920—
January 105,165,301 4.229,339 109.394.640
February 105,609,980 4.169,071 109,969,061
March 100.286,280 4,113,174 104,399,454
.:ipril 101,636,652 4.033,044 106,669,606
May 102,496,683 4,107,517 106,603,200
June 99,619,182 4,080,992 103,700,174
July 95,510,383 4,079,589 99,589.972
August 95,183,753 4,044.990 99,229,743
September 95,205,901 4,022,842 99,228,743
October 95.222.381 4.006.798 99.229,179
At the end of January, 1916, gold held for the redemp-
tion of Dominion notes amounted to $115,147,985. In January
of 1917, the figure was $114,105,144. while in October of
that same year it had arisen to $114,616,227. In connection
with the above figures it might be also interesting to note
that the decrease in gold held for the redemption of notes
has not been in accorda^nce with the circulation of such notes.
For instance, in January of 1920, circulation totalled $303,-
678,278, against which was held $105,165,301 in gold. In
September of this year the circulation was $303,065,376,
while only $95,205,901 was held against this in gold. The
reduction in gold reserve against savings deposits was justi-
fied, as deposits in the Post Office Savings Banks and the Do-
mininon Government . Savings Banks have decreased.
Banks' Holdings
Turning to the banks' holdings of gold it will be noticed
that during the past two years there has not been very much
change. Holdings in Canada have tended to become lower,
while holdings of the banks abroad have increased slightly.
The monthly average, however, has followed a fairly even
course.
Gold and sub. Gold and sub. Monthly
1919 — coin in Canada, coin elsewhere. Total. average.
January $61,564,369 $18,999,305 $80,563,677 $86,168,445
February 61.407,637 18,771,077 80,178.618 85,725,951
March 61,568,476 18,685,091 80,253.572 86,098.447
April . . .■ 61.521,905 18,935,264 80,457,174 84,953,140
May 61,328,957 18,675,213 80,004,173 84.809.908
June 60,543.234 18,736,201 79.279,438 85,656,671
July 61.045,702 19.157.828 80.203,535 86,236.599
August 61,025.508 19.799.188 80.824,700 86,079,703
September 61.656,194 19,888,844 81.560,043 87,170,499
October 61,496,667 19,6.56,819 81,063,489 86.492,301
November 63,168.170 20,684,480 83.572.653 86.617,911
December 62.553,188 17,634,912 80.088,103 84,213,438
1920—
January 63,248,178 17,647,320 80,895,602 86,641,270
February 63,302,649 17,677,669 80.980.212 87.668.936
March 63,667,531 16,323.290 79.990,826 87.396,939
April 66,864.526 16,483.966 83,348,497 88.865.086
May 63,830.589 16.368,010 80.198,600 86,487,324
June 63.682,026 17.282,255 80.964,285 86,460,864
July 62,580.287 18,480,221 81.060.510 87.471.926
August 61,499,066 18.455,770 79,954.831 86.332,046
September 61,764.041 19.273.632 81,037,676 86,944,667
October 61.680,300 18,143,172 79.823,476 86.211.873
The World's Stocks
The past two years have witnessed important movements
in international gold supply, while the grand total has de-
creased since the end of 1918. Japan and India show in-
creases, indicating an extensive movement to the Orient. The
world position in this respect is fully discussed by a writer
in the London Times of August 14, 1920, whose figures show
the gold holdings of the world's state banks and treasuries
at the end of 1913, 1914, 1915, 1918 and 1919 and also at the
end of June last, and therefore gives a measure of the move-
ment of gold money during the war. As it is desired to
arrive at a grand total, it is necessary to include, at any rate,
one doubtful item — that of the Imperial Bank of Russia, for
which no figure later than that of October, 1917 (£129,500,-
000), is available, and the totals shown since that date are
approximations much open to question. The last two figures
of £65,000,000 are based on the statement that the gold re-
serve transferred to Omsk amounted on August 1, 1919, ta
651,532,118 roubles. If the figures set down for Russia are
too high, they affect the calculations in this statement accord-
ingly.
All Countries Not Included
The table is not exhaustive, since Greece, Rumania,
Portugal, Turkey, Finland, Bulgaria, Egypt, Brazil, Uruguay,
Peru, the Straits Settlements, and the banks of issue of
Scotland, Ireland, Victoria, and New Zealand are not in-
cluded; but if all these were added, they would probably ac-
count for £70,000,000 at the end of 1913, rising to £85,000,000
at the end of 1915, and thereafter probably falling somewhat
if the actual gold holdings of the state banks of Greece and
Rumania (for which figures are not available to the writer)
have not increased. The addition of these further banks,
however, would not materially affect the total of the table: —
End of
France (1)
Enprland (2) . .
Spain
Russia (3)
Reichsbank (7)
Netherlands
Italy
(In n
Dec,
1913.
140.3
35.0
19.2
161.6
Sweden
Nat. of Denmark . . . .
Nat of Belgium
Austro-Hungary Bank .
Norway
Total, Europe
Dec,
1914.'
166.3
88.0
22.9
155.4
103.9
18.1
44.7
9.5
6.0
of pounds)
Dec.
1915.
200.G
80.0
34.7
161.2
122.3
35.8
43.1
lO.O
6.9
6.2
Dec,
1918.
219.1
108.5
89.1
67.5
32.7
16.6
15.9
10.8
10.7
(11.9)
6.7
Dec,
1919.
223.1
119.8
97.8
(65.0)
64.6
53.1
32.2
20.7
15.6
12.6
10.7
June.
1920.
223.5
146.4
98.1
(65.0)
54.6
53.0
(32.2)
21.3
14.6
12.7
10.7
11.0
8.1
U.S. Treasury
Argentina (4)
772.(
526.(
Canada. Treasury
Canada Chart. Banks (6)
Australia Com. Bank..
43.9
23.7
33.3
19.5
24.8
12.9
15.0
(21.0)
(16.6)
(23.9>
Grand Total
Notes to above.
(1) Including gold
abroad
(2) Including gold
against currency
notes
(3) Excl. gold abroad
(4) Ditto
(5) Including gold
abroad
(6) Including gold
outside Can.
17) £10.260,000 in Span-
dau Tower at De-
cember 31, 1913.
36.0
944.8
37.0
1034.0
52.7
1227.7
18.5
21.4
28.6
27.0
13.5
28.6
16.6
January 7, 1921
THE MONETARY TIMES
Every Modern
Banking Facility
BOARD OF DIRECTORS
Sir William Price. Quebec. Honorary Presi
John Gait, Winnipeg. President
G. H. Thomson. Quebec. Vice-President
Stephen Haas. Toronto. Vice-President
W. R. Allan. Winnipeg. Vice-President
Major Hume Blake, Toronto
G. H. Balfour. Winnipeg
M. Bull. Winnipeg
Sir John W. Carson. C.B.. Montreal
B. B. Cronyn. Toronto
E. L. Drewry, Winnipeg
S. E. Elkin. M.P.. St. John. N.B.
A, Hitchcock, Moose Jaw. Sask.
J. S. Hough. K.C.. Winnipeg
F. E. Kenaston, Minneapolis. Minn.
R. O. McCulloch. Gait. Ont.
W. H. Malkin. Vancouver, B.C.
Wm. Shaw. Quebec
G. M. Black. Winnipeg
D. N. Finnic. Winnipeg
OFFICERS
H. B, SHAW. Winnipeg. Gene
J. W. HAMILTON. Winnipeg,
Asst. Gel
F. W. S. CRISPO, Winnipeg,
Asst. Gel
al Manager
eral Manager
eral Manager
era! Manager
eral Manager
FROM Halifax and Charlottetown, settled and historic,
on the Atlantic, to Prince Rupert, and Vancouver, new
and growing, on the Pacific, are more than 400 branches
of the Union Bank of Canada. In frontier towns, in
peaceful farming districts and in bustling cities, they
stand at strategic points in the pathways of Canadian
trade and commerce, linking East with West, North with
South.
Our nation-wide Banking Service is always at the
disposal of producers, business men and individuals.
Abroad, we have our own New York Agency (49 Wall
St.) and two branches in London, Eng., (6 Princes' St.
E.C., and 26 Haymarket, S.W.) In addition, branches of
the Park-Union Foreign Banking Corporation, which is
jointly owned and controlled by the National Park Bank
of N.Y., and the Union Bank of Canada, offer direct
banking connections in the Orient ; at San Francisco and
Seattle, in the U.S. ; and in Paris, France.
UNION BANK OF CANADA
Capital and Reserve $14,149,296.47
Assets (Nov. 30, 1920) $169,205,445.39
THE MONETARY TIMES
During the years 1916 and 1917, the chief movements
were as follows: — 1916. — Increases. — France, 203.0; England,
83.5; Reichsbank, 126.0; Netherlands, 49.0; U.S. Treasury,
453.0; Argentina, 51.5; Japan, 41.0. Decreases. — Russia,
147.3; Italy, 36.0; Austria-Hungary, 12.1. 1917.— In-
creases.— France, 214.2; England, 87.7; Spain, 78.7; Nether-
lands, 58.1; Sweden, 13.6; U.S. Treasury, 492.0; Japan, 65.6.
Decreases.— Russia, 129.5; Italy, 33.4; Reichsbank, 120.3;
Austria-Hungary, 11.9. The totals for the two years re-
spectively were: — Europe, 757.0 and 768.2; America, 504.5
and 543.8; Asia, 56.9 and 84.1; and Colonies, 54.7 and 58.0
The grand totals were 1,373.1 and 1,474.1.
It will be seen that the annual increase in the gold hold-
ings of these state banks and treasuries was greatest in 1915,
and that in 1919 there was a material loss, particularly in
the case of Germany, the United States, and Russia, though
Japan showed a marked increase.
Stock of Gold Money
During the period covered the aggregate stock of gold
money has been materially added to, as shown by the follow-
ing table, which shows how the stock has been built up to
the extent of £356,000,000 since the end of 1913:—
(In millions of pounds. Gold at 85s. per fine oz.)
Industrial India's
consump- absorp-
tion tion. Balance Aggregate
World's (Europe (year to Egypt's available stock of
output and March 31 absorp- as gold money
of gold. America), following). tion. money. (Dec. 31).
1912 96.9 25.6 25.2 4.2 40.9 1,546
1913 94.7 27.3 18.0 —1.4 50.8 1,596
1914 90.4 (21) 7.6 — B.O 66.8 1,663
1915 96.4 (17) 1.7 —0.8 78.5 1,742
1916 93.6 (18) 11.1 — 64.4 1,806
1917 86.3 (16) 19.0 — 51.3 1.857
1918 78.2 (16) —1.6 — 63.8 1,921
1919 72.0 (22) 19.4 — 30.6 1.952
The totals in the last column give the stock of gold
money as arrived at by the writer's method, which is suffi-
ciently indicated in the table. Other estimates differ con-
siderably, the estimate of the United States Treasury, quoted
in The Economist Commercial History Supplement of Febru-
ary 16, 1918, being £2,095,000,000 at the end of 1913.
Falling off in Gold Production
The foregoing table shows the striking falling off in the
gold production since 1915, and the still greater drop in the
amount of that production which is available as money. For
1919 the latter was about £31,000,000, as compared with about
£45,000,000 per annum in the few years before the war — ^the
war years for special reasons added abnormally to the stock
of money. As the gold output for 1920, and possibly for suc-
ceeding years, will show a further decline, anything like a
normal demand by industry and India would leave as avail-
able for money each year an amount which under pre-war
conditions would have been inadequate for the growing trade
and commerce of the world. Indeed, the total stock of gold
money, which rose strongly from 127d. per head of the world's
population in 1893 to 259d. in 1918 and 261d. in 1919, seems,
for the near future at least, to have reached a point at which
it will do little more than merely keep pace with the grow-
ing population. It should be pointed out that the last table
takes no account of immeasurable items such as the recent
absorption of gold by China and the illicit import into India,
both of which (affecting 1919 in particular) should, if known,
be deducted from the aggregate figures given, which exclude
Asia.
War Movements of Gold
Having thus arrived at figures both for the aggregate
stock of gold money and for the portion of that amount which
is to be found in state banks and treasuries, it is possible,
by comparing them, to get some idea of the migration of gold
money during the war — a picture which, as regards this
movement, will be approximately coi-rect, even if the aggre-
gate stock of gold money is materially different from that
set down: —
(In millions of pounds)
Private banks,
hoarded, and in
State banks and circulation (differ- Stock of gold
treasuries. ence figures). money.
Year's in- Year's in-
crease or crease or Year's
Dec. 31. Total, decrease. Total. , decrease. Total. increase.
1913 945 — 651 — 1,596 —
1914 1,034 89 629 —22 1,663 67
1915 1,228 194 514 —115 1,742 79
1916 1.373 145 433 —81 1,806 64
1917 1,474 101 383 —60 1,857 51
1918 1,500 26 421 38 1.921 64
1919 1,438 —62 514 93 1,952 31.
493 —137 356
Here one sees gold flowing from the pockets of the
public into the state banks and treasuries, the stream reach-
ing its height in 1915 and diminishing yearly since, as one
would expect.
Increased State Holdings
The state banks and treasuries have not only absorbed
the whole of the new gold production available, but have
taken £230,000,000 in addition in the five years to 1918, dur-
ing which period they increased their stock by 59 per cent.
If the £421,000,000 shown at the end of 1918 as being in
private banks, hoarded, and in circulation is at all near the
mark, it has, of course; become largely immobilized, and is
now mostly held by banks or has been hoarded.
In view of the figures in connection with net imports
into this country, referred to later, and the recent unknovsm
absorption of China and India, already mentioned, the 1919
figures in this table are subject to much correction, and
there was in reality no such drop as £62,000,000 in the hQld-
ings of state banks and treasuries, though the totals at the
end of last June given in the first table fairly represent the
real position.
On a percentage basis, if we leave out Australia, the
most gold has flowed into Japan, which profited much from
the war; but absolutely the United States has taken most.
State banks and treasuries increased their stock to the end
of 1918 by £555,000,000, of which no less than £259,000,000
went to the United States, whose record is as follows:—
(In millions of pounds)
In banks Propor-
and in tion of Net
In circula- Total world's Year's imports
Dec. 31 — treasury, tion. stock. stock. increase, or exports.
1913 266 126 392 24.6% — —
1914 243 128 371 22.3% —21 — S4
1915 347 126 473 27.1% 102 + 87
1916 453 137 590 32.7% 117 -fl09
1917 492 139 631 34.0% 41 + 87
1918 525 126 651 33.9% 20 -f 4
1919 467 107 574 29.5% —77 — 60
182 -f-143
June 30—
1920 445 108 653 28.2% —
Eastern Absorption of Gold
Since the end of 1918 that country has lost about £100,-
000,000. Where has it gone to? Mainly to Asia. £25,-
000,000 has gone to Japan, and the balance, or most of it, to
China and India. At the Royal Statistical Society's meet-
ing on June 15 Sir Charles Addis said that £60,000,000 had
been imported by China recently, and doubtless part of that
has in turn gone via Tibet and the Burmese border into India,
which has also smuggled considerable amounts from other
places, including South Africa, where several millions have
vanished from circulation. The illicit imports into India,
where gold has sold at large premiums in the bazaars, are
reckoned by the Times of India (June, 1920) to have reached
£4,000,000 a month.
Most of the gold shipped home by South Africa is reach-
ing the east. The gold re-exported to South Africa has gone
to make up the wastage caused by illicit export to India, the
amount sent to the Straits Settlements must have largely
gone in the same direction; and it is probably not far wrong
to say that in this way £20,000,000 of gold extracted from
South African mines in the last nine months has found or
will find its way to India.
January 7, 1921
THE MONETARY TIMES
63
THE DOMINION BANK
ESTABLISHED 1871
Capital Paid Up - - -
Reserve Fund and Undivided Profits
$6,000,000
$7,500,000
Sir Edmund B. Osier, President
A. W. Austin
Sir Augustus M. Nanton'
Vice-Presidents
London, England
Branch
73 Cornhill, E.C. 3
S. L. Jones,
Manager
«y "- ft 111
mm 9
n 331313 ii
31 131111 if
^
New York Agency,
51 Broadway
C. S. Howard,
Agent
HEAD OFFICE OF THE DOMINION BANK, TORONTO
CLARENCE A. BOGERT, General Manager
THE MONETARY TIMES
Volume 66
In the year to March 31, 1920, India's declared net im-
ports of gold reached £17,400,000, practically all in the last
five months of the time, the amount increasing rapidly until
March showed twice the figure of November. The net ex-
ports from the United Kingdom to India for the six months
to June 30 last were £18,211,000. Declared gold holdings (as
given in the first table) are sometimes deceptive. During
the five months July to November, 1919, there were net im-
ports into the United Kingdom amounting to £54,854,000,
and the Bank of England's declared gold holding showed an
increase of only £3,223,000 during that period. £42,886,000
of the amount came from Holland and Belgium, and was
doubtless largely German gold intended to pay for food-
stuffs. During the first six months of this year we have ex-
ported (net) £19,052,000 of gold, and in the same time the
Bank of England's declared gold holding was advanced £26,-
600,000! Thus the declared position seems to have been re-
dressed.
Principal Gold-Holding Countries
It is interesting to note that the pre-war and present
positions of the principal gold-holding countries of the world
are: —
(In millions of pounds)
Pre-war. Now.
In banks
and in "Lost,"
State circu- State immobilized
bank. lation. Total. bank, or hoarded.
United States. Dec. 31, 1914. 243 128 371 445 74*
France. Dec. 31, 1914 (U.S.
Mint) 166 119 285 144 141
Russia. Dec. 31, 1914 (U.S.
Mint) 155 49 204 (?)65 139
Germany, Dec. 31, 191S
(Frankfurter Zeitung).. 69 112 131 55 126
United Kingdom, June 30,
1914 (Currency Com-
mittee) 38 123 161 146 15
Totals G71 531 1,202 855 347
•Gained.
The record of the United Kingdom, so far as it can be
traced, is: —
June 30, 1914. June 30. 1915. June 30, 1919. June 80, 1920.
£117,000.000 £146.000,000
Bank of England. £38,000.000 £81.000,000 £117.000.000 £146.000.000
Banks 45.000,000 (?) 40.000.000 I , . 0 50 000 000
Public 78.000.000 75.000,000 I '■' ''"■'"'"■'"'" < .) O"."""."""
£161,000,000 £196,000,000 £167.000,000 £196,000,000
The Currency Committee recommended that the stock of
gold in the Central Institution should be increased to £150,-
000,000, and this has now been attained.
BANK PREMISES AT COST
In the year 1919 there were more branches of Canadian
banks opened than in any previous period in the banking
history of the Dominion. (Jreat expansion in this connec-
tion also took place during 1920, although not on quite as
large a scale. The figures given below reflect this to some
extent, showing the value of bank premises, month by month
since January, 1917. The amounts given, however, do not
represent the present-day value of the banks' premises. The
government requires that this item in the monthly statement
be valued at not more than cost, less depreciation, if any,
and that no provision be made for appreciation. It is evi-
dent, therefore, in view of the rising cost of real estate dur-
ing the past two years, that the figures which follow under-
value the premises to a certain degree: —
1917. 1918. 1919. 1920.
January $49,317,636 $51,716,972 $52,801,507 $56,500,332
February 49.620.189 51,897,132 53.005.275 57.207,547
March 49.967,852 52,388,793 53,317,635 57,946,975
April 49,980,909 62.313,874 54,443,467 55,317,655
May 50,134,753 52,501,581 53,898,884 56.459.647
June 50,450,150 62.780,885 54,315.064 57.192,011
July 50,577,670 .52.954.694 64.667.642 57.896.005
August 50.725.312 53,333.467 56.014,766 58,554,076
September 51,188.669 53.268,468 55,464.363 59.297,890
October 61,107.191 53,009,741 55,602,824 60,126,795
November 50,850,974 .52.547.327 55.518,536
December 51,484,686 62,550,835 55,944,018
MONTREAL AND QUEBEC SAVINGS INSTITUTIONS
That the Montreal City and District Savings Bank and
the Caisse d'Economie Notre Dame, of Quebec, are two im-
portant banking institutions in the Dominion, is evident from
the figures which are given below. Their business is chiefly
with the French-Canadians of their respective communities
and savings deposits constitute the greater part of their lia-
bilities to the public. The Dominion government keeps funds
on deposit with them, but during the past year, as in the case
of the chartered banks, these balances have been greatly
reduced.
The chief investment of these institutions, as will be
noticed, is in Canadian municipal securities, although their
holdings of other bonds and stock are considerably heavy.
Their loans are made largely on bank stocks and other se-
curities, although the former are not very significant.
The trend of notice deposits reflects the prosperity of the
communities in which they operate. The quick recovery from
the effects of the Victory loan in the fall of 1919 is especially
notable, particularly in the case of the Montreal bank.
Montreal City and District Savings Bank
Dominion
government
Loans
Canadian
demand
Notice
on
municipal
1919.
deposits.
deposits.
securities.
securities.
Cash.
October
... $ 93,599
$40,253,569
$7,268,848
$16,481,022
$7,017,658
November
. . . 2,916,405
38,880,396
8,031,883
16,381.179
7,094,666
December
1920.
January
. . . 1,354,920
40,213,589
8.155.710
16.400,944
6.782.375
972,377
40,982,767
8,467.671
16.563,863
6,636,242
February
642.376
41,947,219
8.528,526
15,728,125
6.813,298
March . . . .
624,836
42,693,315
8,856.906
15,800.058
7,052,432
April
614,835
42,798,052
9,178,936
15,618.772
7.366.586
May
619,835
42,708,148
9,216,677
16.600,076
7.296.117
June
395,043
42.928.529
9.441,090
16,241,758
7,513,983
July
336,043
43.043.074
9,396,848
16,191,611
6.831.303
August
286,043
43,654,974
9,307.661
16,167,414
7.103.422
September
260,043
43,889,372
9.610.628
16,136,263
6.785.748
October . . .
200,043
43,950.117
9.576,381
16,074,660
7,037,959
Caisse d'Economie Notre Dame de Quebec
Dominion
government
Ix>ans
Canadian
demand
Notice
on
municipal
deposits.
deposits.
securities.
securities
Cash.
. $
$10,688,489
$3,070,713
$4,087,966
$1,869,093
. $ 515,985
10,119,820
2,984,875
4,087,534
1,711.899
422,880
10,196,410
3,003,488
4.083.687
1.707,758
357,605
10,209,265
3,098,423
4,082.464
1.620,782
202,041
10.341,502
3,081,775
4,121,677
1,600,022
188,628
10,424.737
3,200,655
4,121,677
1,554,108
188,628
10.513.667
3,247,493
4,114,676
1,663,534
168,628
10.645,071
3,219,714
4,113,968
1,632,221
95,628
10,468,067
3,242,860
4,107.008
1,398,087
68,628
10,292,696
3,182,692
4,104,616
1,287,284
43,628
10.729.619
3,183,629
4,078,615
1,302,238
33,628
10,324.364
3,203,326
4.074,780
1,326,916
7,628
10,507.703
3,213,922
4,070.941
1,620,242
BANK LOANS TO DIRECTORS
1919.
1919.
October
November
December
1920.
January
February
March
April
May
June
July
August
September
October
In the monthly returns to the government, Canadian
banks are requested to show the aggregate amount of loans
to directors and firms of which they are partners. The fig-
ures given below show that the course of these loans during
the past three years has not been anything out of the ordi-
nary. Expansion, of course, has taken place as general bus-
iness activity has increased: —
1918 1919 1920
January $8,282,811 $8,412,352 $10,193,668
February 8,124,358 8,935,094 10,486,347
March 9,490,098 9,513.529 10,838,430
April 8,004,424 9,274,523 11,192,329
May 7,967,892 7,919,869 10,753,595
June 8,013,622 7,275,448 10,506,652
July 7,642,280 8,645,725 10,408,321
August _- 7,544,298 8,545,891 10,514,251
September 7,227,344 9,135,518 9,641,328
October 7,329,893 8,837,140 9,951,009
November 8,749,377 10,742,309
December 9,021,436 9,573,924
January 7, 1921
THE MONETARY TIMES
55
BANK OF NEW ZEALAND
ESTABLISHED in 1861
Bankers to the Governnieiit of New Zealand, which holds Preference Shares in the Bank for $3,649,875, and
guarantees its Redeemable Stock .$2,579,186.
Paid-up Capital ($13,528,811) and Reserve Fund ($12,166,250) $25,695,061
Undivided Profits $713,039
Aggregate Assets at 31st March, 1920 $257,500,944
BOARD , OF DIRECTORS:
WELLINGTON, N.Z.
(Four are appointed by
New Zealand Govern-
ment ; two elected by
Ordinary Shareholders.)
H. BEAUCHAMP
(Chairman)
GEORGE ELLIOT
R. W. KANE
WM. REECE
J. H. UPTON
WM. WATvSON
HEAD OFFICE :
LONDON BOARD
FREDK. LUBBOCK
(Chairman)
THE RT. HON. LORD
CARNOCK, G.C.B.
ALEX. MICHIE
SIR. JAMES MILLvS,
K.C.M.G.
LONDON OFFICE
WELLINGTON, NEW ZEALAND. 1, Queen Victoria Street, E.G. 4.
General Manager : H. BUCKLETON, Manager ; ALEXANDER KAY.
{Auditors Appointed by New Zealand Government) :
RICHARD W. GIBBS, Chief Auditor. W. C. SNEATH (Price, Waterhouse & Co.), London Auditor.
THE BANK OF NEW ZEALAND has Branches or Agencies in all the principal cities and towns in New Zealand, in
Melbourne and Sydney (Australia), Suva and Levuka (Fiji), and Apia (Samoa), also Agents in all the principal Cities in the world.
The Bank has facilities for conducting every description of Banking business.
The Bank negotiates at any of its Branches Bills drawn in dollars under American Credits as well as those in sterling, and
it invites the establishment of such Credits. It also issues Drafts or Credits, either in dollars or sterling, on any of the princi-
pal cities in North America.
Chief Agents in Canada :
CANADIAN BANK OF COMMERCE. BANK OF MONTREAL.
American Express Company
Bank of Nova Scotia
Other Agents and Correspondents in Canada :
Bank of Ottawa
Dominion Bank
Dominion Express Company, Toronto
Chief Agents in New York: IRVING NATIONAL BANK.
Imperial Bank of Canada
Royal Bank of Canada
Chief Agents in San Francisco FIRST NATIONAL BANK OF SAN FRANCISCO.
Other
American Exchange National Bank,
New York
American Express Company
Bankers' Trust Company, New York
Bank of Bishop and Company, Honolulu
Bank of Italy
Bank of Montreal
Bank of Nova Scotia
Brown Brothers and Company, Boston
Canadian Bank of Commerce
Chartered Bank of India, Australia and
China
Chase National Bank, New York
Columbia Trust Company, New York
Crocker National Bank of San Francisco
Drexel & Company, Philadelphia.
Equitable Trust Company of New York
Agents and Correspondents in United
Farmers & Merchants National Bank.
Los Angeles
Farmers Loan and Trust Company, New
York
First National Bank of Boston
First National Bank of Chica,go
Greeneiiaum Sons Bank & Trust Co.,
Chicago
Guaranty Trust Company of New York
Hanover National Bank of the City of
New York
Hong-Kong & Shanghai Banking Corp.
Illinois Trust & Savings Bank, Chicago
International Banking Corporation
Mercantile Bank of the Americas, New
Orleans.
Mercantile Trust Co.. St, Louis
States :
Merchants National Bank of Boston
Morgan & Co., J. P., New York
National Bank of Commerce, vSt. Louis
National Bank of South Africa, Ltd.
National City Bank of New Y'ork
National Park Bank of New York
National Shawmut Bank, Boston
Northern Trust Company, Chicago
Philadelphia National Bank
Riggs National Bank of Washington,
DC.
Royal Bank of Canada
Standard Bank of South Africa, Ltd.
Walker Bros., Salt Lake City.
Yokohama Specie Bank, Ltd
THE MONETARY TIMES
Volume 66
Leading Bankers Forecasted Tightening of Credit
Views Expressed During Past Year Urged Caution, with Leaning Towards Pessimism
as to Business Outloolt — Sir Frederick Williams-Taylor on Loans and Deposits — No Desire
for Violent Exchange Fluctuations — Great Need for Public and Private Economy
CANADIAN bankers, from the beginning of 1920, took a
stand on the side of caution. This view they carried into
effect by a gradual restriction of credit, which action was not
altogether voluntary on their part because of the fact that t
would have been quite impossible to meet the demands for
money without causing over-inflation and danger to the banks
themselves and business organization as a whole. The figures
of banking for the year, showTi elsewhere in this issue, illus-
trate how this policy was put into effect.
Representative opinions of bankers, expressed for the
most part at the annual meetings, are given below. These
opinions indicate the line of action followed by the banks dur-
ing the year.
No Extra Profit in Exchange
H. B. Shaw, general manager of the Union Bank, at the
annual meeting on January 7, 1920 : —
"No permanent relief can be expected until the nations of
the world get together, without greed or selfish motives, and
in a frank and fearless manner face existing conditions. The
United States might very properly be expected to take the
lead. As far as we in Canada are concerned, time, production
and thrift are the only possible solvents. Exporters and im-
porters should not open credits or engage in contracts without
exercising the utmost caution. Inflation of the various cur-
rencies has caused exchange to become a most important ques-
tion. An erroneous idea prevails that the banks are respons-
ible for and making large profits out of the present situation.
This is, indeed, incorrect; the banks derive no extra profits as
the result of the hea\'y fluctuations in exchange. We shall,
indeed, welcome a return to normal conditions."
Time for Production
Sir Herbert S. Holt, president. Royal Bank of Canada, at
the annual meeting, January 8, 1920: — ■
"During the year just passed Canada has again proved
her ability to meet every emergency as it arises. Our soldiers
have been absorbed into civil life without strain, our indus-
tries have been readjusted with little unemployment, and the
unfailing response of our people to every patriotic call has
been shown by the immense over-subscription to the last Vic-
tory Loan. Despite an unfavorable harvest in some parts of
the w-est, the country is prosperous and the balance of trade
continues largely in our favor.
"Factors which have contributed to the prevailing high
prices are being gradually eliminated. Ocean transportation
sei-v-ice will soon far exceed that of the pre-war period and
stores which have accumulated in distant lands will, as a
result, become readily available. Industrial plants have mul-
tiplied and everywhere an aiTny of women workers has been
added to the ranks of labor. Moreover, Europe can only ulti-
mately pay its huge debts by a corresponding output of goods.
We shall then enter upon an era of greater supplies and keen
competition. If pi-ices fall in the future, as seems probable,
each dollar made and saved to-day will then have greater pur-
chasing power. We should, therefore, strive to produce to the
limit of our capacity while markets are high, and exercise the
most rigid economy in order that our gains may be conserved.
"The government is still discharging some of the heavy
obligations arising out of the war and the net public debt now
fast approaches two billion dollars. There are only two ways
of meeting this responsibility — greater industry and less ex-
travagance— prosperity is not unending or national borrow-
ing power unlimited. It is an unvarying economic law of
which we in Canada had a bitter experience following the Civil
Wai' — that all conflicts terminate in a period of prosperity and
inflation during reconstruction, which is succeeded by equal
or greater depression. For this inevitable reaction in the
future we should now be prepared, and it is the duty of the
government to set an example to the nation by abstaining
from all unnecessary or wasteful expenditure. It cannot be
too strongly urged or too often repeated that the greatest pos-
sible effort must be put forth in every direction if we are to
meet the amount required for interest and the redemption of
debt. It has been aptly said that governments have no income
outside that of the people, and that the wealth of a country,
like that of an individual, can only be built up by spending
less than is earned.
A Year of Surprises
Sir Edmund Walker, president of the Canadian Bank of
Commerce, at the annual meeting on January 13, 1920: —
"The difficulties of reconstruction after the great war are
even greater than we feared. The whole world is feeling the
effect of four years in which the ordinary work and economics
of life were not merely neglected, but the basis thereof was
almost swept away. We are short of almost every commod-
ity, the strongest evidence of this being the fact that millions
of people in Europe face actual starvation. We cannot re-
establish the normal supply of commodities except by work-
ing harder than usual, and we cannot lessen the terrible strain
of high prices without doing the extra work which will put an
end to the lack of commodities. We cannot adjust prices
without also bringing about a contraction in the volume of
paper money and other instruments of credit, and so far as
it is possible to enforce contraction without interfering with
the production of what is really necessary, the reduction of
prices will be facilitated. In a word, bankers should not aid
speculation or assist ventures which do not directly lead to
production. We are still building ships with feverish haste
throughout the world, and we ought to be spending large
sums on railroads in order that commodities may be freely
distributed. The present cost of ocean transportation, quite
as much as the cost of goods at the primary markets, stands
like a huge barrier across the pathway of return to normal
conditions. What is worse, how-ever, is that even present
prices, in the natural order of things, will go on rising until
the lack in the world's supply of commodities has been filled,
and there has been a large contraction in the volume of paper
money now in existence."
Need for Government Economy
W. G. Gooderham, president. Bank of Toronto, at the
annual meeting, January 14, 1920: —
"The indebtedness of the country has now reached an
amount that will prove a heavy burden for our present popu-
lation. So long as the war existed and such tremendous
issues were at stake, no sacrifice was too great to be taken in
supporting the government in their defence of the empire, but
the time has come when the best energies of the administra-
tion must be directed towards reducing expenditure in every
direction. No new indebtedness should be incurred excepting
such as will have the direct effect of increasing production, or
for such enterprises as will return sufficient revenue to fully
justify the expenditure. Every new demand upon the treas-
ury should be tested by these requirements, and every effort
should be made to lessen in every way the country's expendi-
ture.
"Upon the amount of our production depends the amount
and value of our exports, and to the increase of our exports
we must look for the means whereby we can comfortably carry
the burden of interest on our national debt. There is no
country that can look forward with greater hope and confi-
dence than Canada. We have immense potential resources.
January 7, 1921
THE MONETARY TIMES
57
How Do I
Make a Will?
FIRST — Decide how you wish to divide your property.
SECOND — Decide upon a competent, responsible Executor to carry out
the provisions of your Will.
THIRD — Have your wishes put in correct legal form by your solicitor.
FOURTH — Name the Union Trust Company to act as Executor and
Trustee under your Will. We have an enviable reputation for pains-
taking, prompt and economical settlement of estates — the result of
long study and experience, and a determination to serve well those
who do business with us.
We Welcome a confidential interview
Union Trust Company Limited
HENRY F. GOODERHAM, President
TORONTO — Richmond and Victoria Streets
WINNIPEG, MAN. LONDON, ENG.
4% on Savings — Withdrawable by Cheque
BANK OF HAMILTON
Head Office - HAMILTON
Established 1872
Capital Paid Up (November 30th, 1920) - - $4,946,360
Reserve Fund (November 30th, 1920) - - - $4,673,180
BOARD OF DIRECTORS:
Sir John Hendrie, K.C.M.G., C.V.O., President. Cyrus A. Birge, Vice-President.
C. C. Dalton Robert Hobson W. E. Phin I. Pithlado, K.C. J. Turnbull W. A. Wood
Branches at Montreal and throughout Ontario, the North-west and British Columbia.
Correspondents in Great Britian
National Provincial and Union Bank of England, Umited. Barclays Bank. Limited. London, ?:ngland
Correspondents in United States
Pittsburg— Exchange National Bank
Detroit— Eirst and Old Detroit National
Bank
Chicago — Continental and Commercial
National Bank
Cleveland — First National Bank
St. Louis — National Bank of Commerce
New York — Hanover National Bank
Mechanics and Metals Na-
tional Bank
National City Bank
Philadelphia— First National Bank
Boston — National Shawmut Bank
Buffalo — Marine Trust Co.
Kansas Citj' — National Bank of Com-
merce
Minneapolis — Northwestern National
Bank
Seattle — Bank of California
Sail Francisco — Crocker National Bank
Duluth — American Exchange National
Bank
Collections effected in all parts of Canada promptly and cheaply
CORRESPONDENCE SOLICITED. SAVINGS DEPARTMENT AT ALL BRANCHES
J. P. BELL, General Manager
58
THE MONETARY TIMES
Volume 66
and the development of them is certain to take place. It may
take time — perhaps it is better that we should grow steadily
rather than rapidly, but our future is certain to be a bright
one."
Recent Prosperity Was Not Sound
H. A. Richardson, general manager of the Bank of Nova
Scotia, at the annual meeting on January 28, 1920 : —
"During the past year conditions generally have been a good
deal confused, and while prosperity has been fairly general
throughout Canada, it has been of a somewhat feverish char-
acter, for there is the knowledge that it is based to a consider-
able extent on inflation. Similar conditions prevail in the
United States, where speculation in commodities and real
estate, in addition to the somewhat common speculation in
shares on Wall Street, has resulted in a considerable strain
on floating credit. Foreign trade has been hampered by ab-
normal exchange rates, labor has been unsettled and the oper-
ation of most businesses has been attended by considerable
anxiety. The press and the platform have teemed with
theories for the amelioration of the conditions confronting us,
and we have had what seems ample time to consider all aca-
demic remedies for the disposal of this aftermath of the war.
We should, therefore, without further loss of time, get down
to honest, hard work which, after all, is the real panacea for
our present troubles. If each and every person would give a
good account of himself in that respect, it must follow that
efficiency would obtain throughout our land, with the result
that, through increased production, the process of deflation
would forthwith begin, and we would then, year by year, find
our national debt being gradually absorbed and liquidated —
for that overhanging debt and the further needs of the gov-
ernment are in fact the outstanding matters of vital import-
ance to all of us, as we shall more fully realize a little later
on. It seems impossible that any one should fail to recognize
personal responsibility in connection with the financial obliga-
tions of our country. The debt was incurred to carry us
safely through the war, and it is only by individual effort that
it can be borne and finally liquidated. The matter is personal
to every citizen of Canada. It is therefore essential that work
and increased production be undertaken and persisted in, and
that personal and public expenditure be scrupulously kept
down to the last dollar. It would seem advisable, rather than
lay down maxims for others, that each individual, and partic-
ularly those responsible for the management of each business
enterprise, make certain that the work entrusted to him and
those under him is performed with the maximum of efficiency.
Given that, we shall gradually work back to normal conditions;
failing it, we are heading for serious trouble."
Widespread Rise in Prices
J. P. Bell, general manager of the Bank of Hamilton, at
the annual meeting on April 19, 1920, referred to the rise in
prices as world-wide, rather than local, and gave as some of
the causes the excessive issue of government bonds and note
circulation, the insistent and increasing demand for goods,
accompanied by disorganized and decreased production and
excessive taxes. Money being only a shadow of the substance
represented by commodities, the decrease in the production of
commodities has resulted in an increase in their price. He
then referred to the excess profits tax, and the heavy surtaxes
on the income tax, as a paralyzing element so far as the trade
of the country is concerned, and said that some other means
should be found of raising the revenue necessary to pay the
interest and gradually retire our war debts. The taxes made
it necessary for the price to be raised by each man through
whose hands the goods passed in order to realize cash to cover
his own taxes, a cumulative burden which would inevitably
result in a reaction in trade and restricted production, or de-
mands for credit which would be a dangerous strain on the
finances of the country, and which would prevent the natural
increase in capital needed for new enterprises and growing
business, excessive taxation being, therefore, a. large con-
comitant of the high cost of living and the prevailing discon-
tent. It would be necessary to speed up production and to
produce more of the necessities of life, both on the farm and
in the factory. At a time when more work and more goods
should be the watchword, everyone seemed to be trying to ob-
tain more leisure.
Room for More Population
G. T. Somers, president. Sterling Bank, at the annual
meeting on May 18, 1920: —
"While there is a good deal of talk and general unrest, I
have no fear as to the future prosperity of this country.
There is a good and comfortable living to be made here for
everyone. I believe we have a sound and contented popula-
tion whose judgment in the end will lead them to safe conclu-
sions, and govern their acts wisely. What we need most now,
which I emphasized before the war, is 'increased population
of a desirable type' to develop our resources and increase our
production."
Conditions Very Uncertain
Peleg Howland, president. Imperial Bank, at the annual
meeting. May 26, 1920:—
"It is hoped and believed that we will do well during the
coming year, but there was never a time in my recollection
when conditions were so uncertain, and when it was so difficult
to form an opinion, satisfactory at least to oneself, as to what
may be in store for us. Here is the situation in Canada as it
appears to me: Large government expenditures have been
sanctioned by parliament; outlays on the acquired railroads
must be made; public works, thougli curtailed, have not
ceased. Our pulp and paper industries have expanded enor-
mously, and are continuing their growth. There is demand
for lumber at extraordinary prices, and efforts are being made
to supply it. The manufacturers of nearly all kinds of goods,
with the exception of those making some lines of clothing, in-
cluding silks and boots and shoes, are as busy as labor, power
and transportation conditions will permit. Good returns are
promised from our fruits, furs, fish and minerals. Immigra-
tion has increased, the numbers being some 57,000 in 1918-19,
and 117,000 in 1919-20. There is investment of United States
funds in Canadian securities, industries and timber limits;
wages continue high, with indications that they have not
reached the limit, and there is an almost unlimited demand
for housing at any cost.
"Against all this we have the comparatively small resi.
due of crop left over from last year, the long, severe vrinter,
which has delayed seeding and prevented the proper prepara-
tion of the soil, with consequent reduced acreage and adverse
chances of good crops (although recent advices from the
northwest would indicate that the excellent conditions as to
moisture may go a long way to offset other drawbacks) ; the
loss of cattle and horses in the northwest from the severity of
the winter and the shortage of feed; the poor condition of
those remaining; the curtailment in the number of hogs be-
cause of the cost of production; the continued increase in the
amount of our imports and the decrease in our exports (in the
months of March and April the balance of trade was actually
against us) ; the growing public debt and the increasing bur-
den of taxation, municipal, provincial and Dominion; govern-
mental restrictions and interference with the natural course
of trade — for governmental efforts to provide liberally for
the weak, the needy and the helpless, while at the same time
curtailing or restricting the amount of labor or effort, which
should be greater if help of this kind is to be provided. Put
the favorable against the unfavorable, and judge for your-
selves.
Selective Curtailment of Credit
D. C. Macarow, general manager of the Merchants Bank,
at the annual meeting on June 2, 1920: —
"The demand for borrowed capital continues to be more
or less importunate, and it is in the conservation of credit and
the equitable rationing of it that banks can play, and indeed
are playing, a sound constructive role. Legitimate productive
enterprises are being fostered and encouraged fairly, while at
the same time a firmly restraining hand is held upon unpro-
ductive, non-essential and speculative undertakings. This pol-
icy of selective curtailment, so to put it, operating as it does
at the very root of existing evils, and applied \vith due judg-
ment, discrimination and consistency, cannot but prove a bene-
January 7, 1921
THE MONETARY TIMES
59
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affairs and make it a matter of further pride to have
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Trust Company — as the Executor and Trustee of your Will.
This Corporation offers to its clients the benefits of
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Consult us to-day regarding your Will.
Friendly counsel gladly given.
A. D. LANGMUIR, W. G. WATSON,
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Total Assets Exceed $100,000,000^
Head Office :
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Ottawa
Wiiiuipeg
Branches :
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IHE Toronto General Trusts Corporation
THE MONETARY TIMES
Volume 66
ficial corrective and an importantly contributing factor toward
restoring, with a minimum of dislocation and disturbance,
healthy and normal conditions in the body politic.
"I might here venture to say that it is a matter of grati-
fication to see our mercantile marine growing apace and to
know that the government will have, it is understood, some 45
mei-chant vessels in commission by the end of July next. I
mentioned last year, and I reaffirm the opinion then expressed,
that there is nothing of greater national importance than the
establishment of our own lines of ocean transport, and what
has been and is being accomplished in this direction, both by
the government and by private enterprise, augurs well for
the future safety and stability of the country's trade and com-
merce.
"After what looked like in some respects an ominous start
the crop situation throughout the country now seems to justify
the belief that good yields will be secured this year. Predic-
tions, however, are futile, and we can only nurse the hope that
actual results will fairly measure up to present optimistic
estimates. Certainly, on the theory of averages alone, we are
entitled to look for some redress in the crop situation this
year. Much depends upon it, more especially in view of the
disappointing results of the last two years, and if nature is
benevolent in the coming harvest, this country will benefit to
an unmeasured extent, and we shall be reasonably in a posi-
tion to view the period of deflation, upon the threshold of
which we stand, with feelings of confidence as to our immedi-
ate future — as to our ultimate future there need be no mis-
giving, for it must be borne in mind that Canada is a young
and virile country of almost limitless possibilities and im-
mense natural resources awaiting development; that its man-
hood is strong, enterprising, thoughtful and sane."
Gradual Deflation
R. Audette, president. La Banque National, at the annual
meetmg on June 9, 1920: —
"We believe that this year will see a diminution in the
advances made to the public and that prudence will oblige the
banks to curtail and choose 'more carefully the operations in
whach they will interest themselves. The facilities which have
been offered by the government during the war will grow less;
the banks who have bororwed will have to reimburse, and this
will allow the government to withdraw a good proportion of
its paper and, to a great extent, re-establish the gold basis it
had before the war. However, this should not be done at the
expense of production. It is evident that, if the government
collects Its loans too suddenly and obliges the banks to hamper
production, it will cause a greater evil; as, if by such a line
of conduct, our exports with the United States decrease and
our imports are the same, our money, which, in relation to the
United States, was worth 10 per cent, to 15 per cent, all the
year less than theirs, will be worth still less, whatever the
gold guarantee the government may have for its paper. What
is wanted for the welfare of Canada is to import only what is
strictly wanted, not to accumulate any goods for speculation
especially necessities of life. We must produce and produce
still more, so that the balance of trade will be in our favor."
Effects of New Taxes
H. J. Daly, president, Home Bank, at the annual meeting,
June 29, 1920:—
"There probably will be some temporary setback to busi-
ness through the levy of taxes under the new budget. The
difficulties of framing this measure of taxation are generally
appreciated, as is evidenced in the willingness of business in-
terests to meet conditions brought about by the application of
the new levy. The national debt is there, to be paid off as
expeditiously as may be accomplished without disturbing the
accustomed channels of industry and trade. Exports and pro-
duction cannot be taxed. The presumption is that the tax
may be raised from what the people can comfortably spare
and what may be added to the overhead charges of the man-
ufacturing and trade without hindering activity in these
spheres. The budget aims in these directions and \vill in all
likelihood be ultimately brought to operate equitably in the
minor features of its detail."
Adverse Trade Balance
Tancrede Bienvenu, general manager of the Banque Pro-
vinciale du Canada, at the annual meeting on August 11,
1920:—
"The balance of trade with the United States this year
shows a heavy deficit against our country. We are convinced
that it is the imperative duty of Canada to reform its position
in this regard, for such an adverse balance is without doubt
the first cause of the depreciation of our currency in the
United States. An intense utilization of all our resources,
economy and production to the utmost extent, and most im-
portant of all, restrictions in importation of luxuries, will
facilitate the task to which of necessity conditions of the pres-
ent time oblige us."
Deposits Fail to Keep Up
William Molson Macpherson, president of the Molsons
Bank, at the annua-l meeting on November 2: —
"The deposits of the Canadian public in the chartered
banks of Canada show an increase for the year of $70,000,000,
but the bank loans in Canada have increa'Sed by $360,000,000.
This justifies the banks in their present policy of restricting
loans. You are doubtless aware that for the past four or five
years the Canadian banks have supplied their customers with
the necessary funds to conduct their business with little, if
s-ny, increase in discount rates, and our customers at the pre-
sent time are discounting their bills at lower rates than can
be obtained in Great Britain or the United States. We are
sure that the Canadian public must value the steady money
market they have enjoyed all through these troublesome times.
"The period of falling prices has begun and provided the
drop is gradual and not violent, our people should be able to
meet the changing conditions without difficulty. Most of our
manufacturing and trading firms have prospered so well dur-
ing the past few years that they are in a good financial condi-
tion to meet a period of readjustment without embarrassment.
Comparison With United States
Sir Frederick Williams-Taylor, general manager of the
Bank of Montreal, at the annual meeting on December 5: —
"As comparisons are constantly made between Canada
and the United States, owing to general similarity in con-
ditions, one anomaly attracts attention, viz.: that with credit
restriction as acute here as it is across the line, the price of
money is materially lower in the Dominion.
"This condition, in days of world-wide high interest rates,
has a^ttracted much attention in other countries and is re-
garded as a tribute to Canada's good banking system. The
one disadvantage of this cheap money condition is that per-
sons on fixed incomes derived from investments face the
higher cost of living, including income tax, with little in-
crease in revenue.
"With reference to current loans in Canada-, your Direc-
tors have felt impelled for many months past, in the Bank's
and the country's best interests, to follow the policy found
essential in every other country, and keep within bounds our
advances to merchants and manufacturers. This policy is in
accordance with the views of the Dominion Government and
has been followed, more or less closely, by aJl Canadian banks.
"Naturally enough, exception has been taken in certain
quarters to such restrictions, but, as a rule, our customers
have recognized the necessity of checking over-trading and
further expansion in such times as we are now facing. There
has never been a period in our experience when requests
for advances for purposes out of the ordinary have been so
numerous.
"It is safe to say that had credit been granted freely and
banking resources become tied up, a serious condition would
have resulted in this country. Already the tide has turned
and many of our friends now frankly admit the danger of the
undue expansion so much in evidence a few months &go. We
are convinced that the business of Canada is in a safer and
sounder position to-day in consequence of a judicious credit
restriction."
January 7, 1921
THE MONETARY TIMES
Capital, $2,000,000
Reserve, $2,000,000
National Trust Company
Limited
Executor Guardian Administrator Assignee Trustee Liquidator
President: SIR JOSEPH FLAVELLE, Bart.
Vice-Presidents: E. R. WOOD, W. E. RUNDLE.
W. E. RUNDLE, General Manager.
Chester D. Massey
H. C. Cox
H. H. FUDGER
H. B. Walker
Hon. Sir Edward Kemp, K.C.M.G.
J. H. Plummer
Board of Directors :
Hon. F. H. Phippen, K.C.
H. J. Fuller
T. B. Macaulay
W. M. Birks
E. M. Saunders
Sir John Aird
Thomas Findley
Fred. W. Harcourt, K.C.
James Ryrie
Hon. Sir Thomas White, K.C.M.G.
Miller Lash
Harrington E. Walker
Norman J. Dawes
Head Office: 18-22 Kin^ Street East, Toronto
Montreal
Winnipeg
Regina
Saskatoon
London, England
BANKING
INFORMATION
During the six months ending Dec. 31st,
1920, The Monetary Times of Canada
published no fewer than forty-three (43)
different articles that were of direct and
vital concern to the practical banker.
This was exclusive of banking statistics,
clearing house returns, branch bank
notes, etc.
In addition, each issue contained a great
volume of information on investments,
insurance (all classes), all of which have
interest for those concerned with the dir-
ection of banking activities.
The subscription price of The Monetary
Times (including The Monetary Times
Annual) is $3.00 a year postpaid.
Monetary Times of Canada
TORONTO
The Home Bank
of Canada
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is in ready communication with the
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ments at the Head Office, and any
enquiries made through any branch
will receive prompt attention.
Branches and Connections throughout Canada.
Head Office—
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THE MONETARY TIMES
Volume 66
Recent Legal Decisions on Canadian Banking
Sections 77, 90 and 176 Interpreted During Past Year— Bank Must
Ascertain Agent's Authority — No Authority to Guarantee Payment to
Third Party — Drawer of Draft Personally Liable for Misrepresentation
in Bank Should Have Advised of Privileged Lien on Its Own Stock
T TNCERTAINTY as to the meaning of certain sections of the
*-^ Canadian Bank Act have again brought banking questions
into the higher courts of this country. The sections on which
the most important decisions were made this year were sec-
tions 176, 90 and 77.
King vs. Royal Bank
In the case of the King vs. Royal Bank of Canada the
Manitoba Court of Appeal held that the burden of proving the
authority of a government agent to receive payment of a
cheque, drawn on a certain bank, payable to "Dominion Gov-
ernment Elevator Company," rested upon that bank.
The action was brought on a cheque for $673.68 drawn by
Woodward & Co., grain merchants, on the Grain Exchange
branch of the Royal Bank of Canada, in favor of "Dominion
Govei-nment Elevator Company." The words "Canadian Gov-
ernment Elevator" were stamped on the back of the cheque
with a rubber stamp, and underneath those words there was
written "Per F. S. Burgess." The cheque in question was
given in payment of charges due from Woodward & Co. to the
Dominion government in connection with wheat received and
stored at the tei'minal elevator at Port Arthur. It was claimed
that the proceeds of the cheque were improperly paid by the
bank to O. S. Burgess, who was in charge of the Dominion
government elevator business at Winnipeg, and who kept the
money for his own use. The duty of Burgess to make deposit
of all funds received by him was not only specifically set forth
to him in written instructions, but was statutory, and he had
no authority to expend any money for any purpose whatever.
Bank Assumed Too Much
In giving judgment against the bank the court said: "The
actual authority of Burgess is determined by the letters and
oral instructions referred to. He was authorized to take
cheques or money in exchange for warehouse receipts and to
make deposits to the credit of the Receiver-General. Without
any express representation being made, the bank teller as-
sumed that Burgess was the manager of a grain company,
with full powers as such. In this the teller was clearly negli-
gent. Moreover, the endorsernent, 'Canadian Government
Elevator, per F. S. Burgess,' was direct notice that the cheque
was being negotiated, not by the owner but by an agent 'per
proc' By section 51 of the Bills of Exchange Act a signature
by procuration operates as notice that the agent has but lim-
ited authority to sign, and the principal is bound by such signa-
ture only if the agent in so signing was acting within the
actual limits of his authority. In this case the endorsement,
'Per F. S. Burgess,' was sufficient to put the bank upon en-
quiry as to the agents' authority. Upon the whole case, I am
of opinion that the defendant bank has failed to establish the
agency of Burgess, actual or ostensible, to receive this sum of
money over their counter, and has failed to show that it ac-
quired any title to the cheque in question by means of a valid
endorsement."
Merchants Bank vs. Stevens
In the next notable case, that of the Merchants Bank vs.
Stevens, the question came up as to whether a bank could
guarantee the payment of a debt due a third party, the Mani-
toba Court of Appeal distinctly holding (1) that a letter writ-
ten on the bank's stationery and signed by the bank manager
to guarantee the payment of a debt due a third party was not
binding upon the bank, and (2) that the bank manager had no
authority to give such a guarantee, and in doing so was not
acting within the scope of his employment.
Briefly, the facts of the case were that the Winnipeg
Motor Exchange Company, an unincorporated company, had
been in operation in Winnipeg, and in the course of its business
the company became largely indebted to the Merchants Bank,
the account being kept at the main branch, which was under
the management of one Paterson. In August, 1917, the com-
pany's indebtedness to the bank amounted to about $40,000,
which amount Paterson was ordered by the general manager
to reduce, but to which order he paid no attention. During
the same month Paterson was instrumental in obtaining a sale
of the business, the bank advancing $5,000, and the name of
the company being changed to the Winnipeg Motor Company.
As far as the bank was concerned, no improvement resulted,
and Paterson continued initialing post-dated cheques to aid
the company in securing further loans. On October 8th, 1917,
the company negotiated a loan with Stevens, the respondent,
for $10,000, to be paid in four installments. As security for
the repayment of the loan the company gave to Stevens four
post-dated cheques on the defendant bank, bearing the dates
of the installments and for corresponding amounts. Paterson
placed his initials on the lower left-hand comer of each
cheque. He also signed and gave to Stevens the following let-
ter: "In connection with the loan of $10,000, which we under-
stand you are gi-anting to the Winnipeg Motor Company, to be
repaid, and etc., we beg to notify you that this bank is pre-
pared to grant the company a credit sufficiently large to enable
them to take up these installments as they mature and hereby
guarantees the payment of the said loan." The money received
from Stevens was deposited to the credit of the company in its
ordinary chequing account in the bank.
The bank refused payment of the cheques and Stevens
then brought action to enforce payment.
No Guaranteeing Power in Bank Act
In the decision the court said: "Apart from the question
of ratification, the real point involved in this appeal is the
power of the bank to give the guarantee. The powers which
a bank may exercise are set out in section 176 and following
sections of the Bank Act. No power to give guarantees is
specifically given by the Bank Act. Any such power must be
derived by necessary implication from the words of the act.
The only words in the act which can possibly be appealed to
are the words in section 76, subsection 1 (d) : "Engage in and
carry on such business generally as appertains to the business
of banking." The question then is whether these words by
necessary implication give the bank power to guarantee the
repayment of a loan by a third party to a customer of tha
bank. When it is remembered that the bank itself is given
specific power to loan money, and that the loaning of money
to its customers is in fact its chief business, it is difficult to
discover any ground for implying a power to guarantee the
repayment of loans made by others. It was argued that rep-
resentations made by the agent, even if fraudulent, bind the
principal, and, as a rule, this is the law. But it is impossible
in my opinion to rely upon the verbal promises of the manager
when the contract has been reduced to writing in the form of
a letter. Even if they could be relied upon, the plaintiff on",e
again returns to the position of seeking to enforce a guarantee,
verbal this time, made by the manager as agent for the bank
which had no power to enter into it. From this standpoint
there can be no ratification of the manager's action, for there
can be no ratification of any ultra vires contract.
"In my view, the giving of the guarantee or undertak-
ing in his case was unauthorized by the Bank Act, and that dis-
poses of the whole case."
Bank of Nova Scotia vs. Hatfield
Another case, which dealt with section 90 of the Bank Act,
was that of Bank of Nova Scotia vs. Hatfield, which arose out
January 7, 1921 THE MONETARY TIMES 63
THE MERCHANTS BANK OF CANADA
Established 1864 HEAD OFFICE: MONTREAL
Paid-up Capital - - $8,400,000 Total Deposits (30th October, 1920) over $170,000,000
Reserve Funds and Undivided Profits 8,660,774 Total Assets (30th October, 1920) over 209,000,000
Board of Directors:
SIR H. MONTAGU ALI^AN, C.V.O. President
A. J. DAWES . - - - Vice-President
Sir F. Orr Orr-Lewis, Bart. Hon. C. C. Ballantyne F. Howard Wii^on
Farquhar Robertson Geo. L. Cains Alfred B. Evans
Thomas Ahearn Lt.-Col. J. R. Moodie Lorne C. Webster
E. W. Kneeland Gordon M. McGregor
General Manager - • - - - D. C. Macarow
Superintendent of Branches and Chief Inspector : T. E. Merrett
General Supervisor ■ - - - - W. A. Meldrum
A GENERAL BANKING BUSINESS TRANSACTED.
399 Branches and Agencies in Canada extending from the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street London, England, Office : 53 Comhilt
W. M. RAMSAY and C. J. CROOK ALL, Agents J. B. DONNELLY, D.S.O., Manager
THE
TRADERS TRUST COMPANY
Authorized Capital - - ' - $500,000.00
Subscribed and Paid Up - - $100,000.00
Authorized Trustee to Act under the Bankruptcy Act in the Provinces of
Manitoba, Saskatchewan, and Alberta
EXECUTORS
J. B. NICHOLSON. ADMINISTRATORS AND ^- ^^ campbell.
President - — • ^ ice-rresidcnt
FINANCIAL AGENTS
Head Office : WINNIPEG. Branch Offices : Regina, Saskatoon, Edmonton
BANKERS: Merchants Bank of Canada.
64
THE MONETARY TIMES
Volume 66
of the acceptance by Hatfield and the discounting by the bank
of a certain draft, and an action commenced in 1918 in regard
to the matter had been dismissed, but "without prejudice, how-
ever, to any action which might be taken by the plaintiff
against any person or persons whatever on or in respect of
the bill of exchange sued on." This action was then brought
by the bank against Hatfield as acceptor.
The facts of the case were that the firm of Hatfield &
Scott of New Brunswick and Montreal had made arrange-
ments to buy carloads of apples from Edward Harrison of
Kentville. N.S., to be paid by drafts drawn by Harrison, and
to which the bills of lading were to be attached. On Decem-
ber 8th, 1917, Hatfield and Harrison called upon the agent of
the Bank of Nova Scotia, and the agent of the bank said he
filled in the date in a form of draft and also the words "at
sight." Harrison signed the draft as drawn and Hatfield ac-
cepted the draft as it then was by writing at the foot of the
draft, "O.K., Hatfield & Scott Co., Ltd., per H. H. Hatfield," and
the draft was afterwards filled in for the sum of $927.50, the
draft being drawn on Hatfield & Scott, Ltd., Monti-eal. The
draft was discounted by the Bank of Nova Scotia and the pro-
ceeds placed to the credit of Edward Harrison. The evidence
further showed that although Hatfield & Scott had applied for
incorporation, they had not at the time received their letters
of incorporation, but believed in the interval they vs'ere an in-
corporated company. Further, the evidence showed that Hat-
field had not been legally authorized by the company (which
in reality did not at the time exist) to act as its agent, but
that he did so.
Decision of the Court
In deciding the case Mr. Justice Chandler says: "Consid-
ering that Hatfield knew- when he accepted the draft sued on
that it was to be used immediately in order to put Edw-ard
Harrison in funds, and that it was absolutely useless and futile
for Hatfield to accept the draft if the draft was not to be valid
or used until a bill of lading for a carload of apples was at-
tached to it, and that this particular draft was discounted by
the bank and the proceeds placed to the credit of Edward Har-
rison's account on December 10, 1917, I have come to the con-
clusion that the draft was not accepted by Hatfield condition-
ally, as contended by him. If the draft was not to be used — that
is, discounted by the bank — until a bill of lading for apples was
attached to it, what was the use of Hatfield's acceptance ? In
the course of business between Edward Harrison and Hatfield
& Scott prior to this date, any drafts drawn by Harrison on
Hatfield & Scott Co., Ltd., to which bills of lading were at-
tached, were paid by Hatfield & Scott at Montreal on presenta-
tion, and if this particular draft was to be held until a bill of
lading was attached to it in order to secure payment, all that
took place between Hatfield and the bank's agent when this
draft was in part prepared and accepted by Hatfield amounts
to nothing whatever, and has no effect.
"If, as stated by Hatfield, the bank manager had waited
tmtil Harrison had brought in a bill of lading to be attached
to the draft accepted by Hatfield before sending it forward for
payment, the bank would have lost the benefit of the bill of
lading as security for the payment of the draft. Section 90 of
the Bank Act provides that the bank shall not acquire or hold
any warehouse receipt or bill of lading or any such security as
aforesaid to secure the payment of any bill, note, draft or
liability unless such bill, note, etc., is negotiated or contracted
at the time of the acquisition thereof by the bank. If the
manager of the bank had acted as Hatfield claims he agreed
to do, the bank would have lost the security of the bill of lad-
ing as the draft accepted by Hatfield was negotiated or dis-
counted on December 10th, at which time admittedly there was
no bill of lading available to be attached to the draft and to
secure its pajTnent. It is unlikely that the manager had alto-
gether overlooked the provisions of section 90 of the Bank
Act in connection w'ith this transaction.
"I think that the defendant Hatfield is liable by reason of
his representation that he had authority to accept the draft
sued upon as agent for Hatfield & Scott Co., Ltd., and that by
his conduct he warranted that he had such authority. Though
Hatfield does not seem to have been aware of the fact at the
time, there was no such corporation as Hatfield & Scott Co.,
Ltd., in existence on the date when the draft sued on was ac-
cepted, but the ignorance of Hatfield on this point does not
affect his liability."
Lazard Bros. vs. Union Bank
The next case dealing with the Bank Act was that of
Lazard Bros. vs. Union Bank of Canada, which came under
section 77 of the act. The facts of the case were that the
late E. E. A. Duvei'net, having arranged with Lazai'd Bros,
of London for a loan, promised to deposit with the Union
Trust Company, as trustee for Lazard Bros., 500 shares of the
Union Bank and 500 shares of the Union Trust Company as
security. The dispute arose over the ownership of 200 shares
of the Union Bank which were held in trust for Lazard Bros,
by means of a stock certificate. The bank claimed ownership
of the shares in question because of a debt owing it by Duver-
net, and because of section 77 of the Bank Act, which provides:
"The bank shall have a privileged lien for any debt or liability
to the bank on the shares of its own capital stock and on any
unpaid dividends of the debtor or person liable, and may de-
cline to allow any transfer of the shares of such debtor or per-
son until the debt is paid."
The bank officials knew ill the details of the loan by
Lazard Bros, and the security on which the loan was made.
Knowing these facts, and knowing of their lien on Duvemet's
shares, which Duvernet was pledging as his owm absolutely,
the bank should have notified Lazard Bros.
His Lordship in deciding the case said in part: "Before
discussing the law I would point out that the certificate depos-
ited with the Union Trust Company afforded no protection to
the plaintiffs. It in no way represented the shares. It was a
mere statement that at its date the shares were standing in
the name of Duvernet. The power of attorney would enable
the holder to make a transfer on the books of the bank, but
there was nothing to prevent Duvernet from dealing with the
stock in the meantime. The production or surrender of the
certificate was not necessary to the transfer of the stock and
there was nothing to prevent the issue of any number of cer-
tificates, each stating the same fact, that Duvemet's name
appeared upon the register as the holder of so many shares.
"In this case I have no hesitation in finding that there was
a duty upon the part of the bank to disclose its lien, and that
failure to disclose was fraudulent in the sense that it was in-
tended to allow the plaintiffs to assume the liability incident
to the acceptance of the bills without the security they thought
they had."
LETTERS OF CREDIT AN INDISPENSABLE
CONVENIENCE
Previous to 1917, letters of credit issued by Canadian
banks were not used very extensively because the conveni-
ence afforded was not sufficient. To-day, however, this fa-
cility is found to be practically indispensable by the im-
porting Canadian and the business man travelling abroad.
Letters of credit issued by Canadian banks are recognized
in practically all the important centres of the world, because
of the banks' extensive connections. It will be seen from
the following figures, which have been taken from the
monthly bank statement under the heading of "liabilities of
customers under letters of credit," how the use of this fa-
cility has grown. The figures also reflex, to some extent, the
development of our foreign trade: —
1917. 1918. 1919. 1920-
January $ 9.377,150 $20,781,228 $33,693,463 $47,967,989
February 9,888,080 20,124.613 31,201,120 46,900.376
March 10,954,633 20,646.226 28,928,930 42,939,486
April 10,623,216 21.563,672 22.079,366 48.794,655
May 12,665.722 17,665,401 20,669,010 50,828,266
June 15,601,123 21,652,323 23,811,176 46,470,631
July 16,260,225 23,428,320 28.746,346 43.261,195
August 16.990,296 21.244,247 30,638,645 42,754,911
September 17.258,539 21,451,481 34,752.308 43,589,081
October 17,320,360 29,318,113 42,787,234 47.635.099
November 21,886,093 32,259.631 50,485,107
December 21,981,345 33,670,067 61,188,148
Januarv 7, 1921
THE MONETARY TIMES
65
llllllllllllllllll
THE BANK OF NOVA SCOTIA
ESTABLISHED 1832
CAPITAL PAID UP
RESERVE FUND
TOTAL ASSETS
$ 9,700,000
18,000,000
240,000,000
1 Head Office
HALIFAX, N.S. m
GENERAL MANAGER'S OFFICE
H. A. RICHARDSON,
TORONTO, ONT.
General Manager.
44 in Nova Scotia
12 in Prince Edward Island
BRANCHES IN CANADA
129 in Ontario
42 in New Brunswick
22 in Quebec
35 in ^Vestern Provinces
CUBA .
PORTO RICO
JAMAICA .
NEWFOUNDLAND
St. John's and 25 other points
WEST INDIES
Havana
Fajardo, Ponce, San Juan
Kingston and 10 other points
DOMINICAN REPUBLIC . Santo Domingo and San Pedro de Macoris
UNITED STATES
3oston
Ch
icago
New York (Agency)
GREAT BRITAIN
LONDON, ENGLAND ... 55 Old Broad Street, E.C. 2.
Correspondents
GREAT BRITAIN— London Joint City & Midland Bank Limited; Royal Bank of Scotland.
FRANCE -Credit Lyonnais.
UNITED STATES— Bank of New York, N.B.A., New York; National Bank of Commerce, New
'i'ork ; Merchants National Bank, Boston ; First National Bank, Chicago ; Fourth Street National Bank,
Philadelphia; Citizens National Bank, Baltimore; American National Bank, San Francisco; First
National Bank, Minneapolis ; First National Bank, Seattle.
Illlllil
THE MONETARY TIMES
Volume 66
Trade Situation Explains Exchange Dislocation
War Time Trade and Currency Difficulties Have Thrown Settlement Mactiinery
Out of Gear — Foreign Exchange Dealings in Canada, and Methods of Calculating-
Different Rates — Bank is the Dealer, Fixing Rate to Adjust Supply and Demand
By A. B. BARKER
MONEY has been defined as a commodity which mankind
accepts in exchange for other commodities and services.
Many substances have been used as money, but gold and
silver have gradually supplanted all other commodities owing
to their peculiar adaptability for use as media of exchange,
and to-day gold is accepted by the nations of the world as
the basic measure of monetary value.
The early coins were simply lumps of rhetal, with a mark
certifying the weight of metal stamped on them by a ham-
mer, and this is all that the coins of to-day indicate. In
coining money no government guarantees the value, but
merely the weight and fineness of the metal in the coin.
The government declares what shall be legal tender in the
payment of debts within its jurisdiction, but the real value
and standing of the coins depend entirely on the willingness
of the inhabitants to accept them in exchange for goods
and services.
Gold being the common standard, and silver used only in
the subsidiary coinage, all prices are quoted in turns by gold.
Goods Exchanged for Goods
Trade, whether by ■ barter, as in primitive times, or
through the present three-cornered system by the inter-
mediary of money or credit,- consists in the exchange of goods
for other goods. The use of money as an intermediary
merely facilitates the exchange by permitting the division
into smaller and more convenient units. One of the argu-
ments often heard is that by dealing at home the money is
"saved," but money is not the one thing for which trade is
carried on. Men sell commodities to dealers for money, and
this money is turned over for the puchase of other goods; but
in the final analysis it all comes back to the exchange of
goods for other goods, or for services. Money, to be of
use, must be used as it is intended, a measure of value and
a medium of exchange. As Ben Johnson once said: "Money,
to be sure, of itself is of no use, for its only use is to part
with it."
As trade increased, it was found that these exchanges
could more easily be arranged by means of credits, which
would, more or less, cancel each other, only the final balances
being settled in gold, and the degree of civilization to which
a country has attained may be largely measured by the per-
fection of its machinery for handling these credits.
These credits are exchange, and exchange, domestic or
foreign, is in reality a commodity in the same sense that
poi'k, or molasses, are commodities. Like them, it is a manu-
factured product, may be bought and sold on the market, and
is subject to the same law of supply and demand.
Exchange is Result of Trade
Exchange is produced by trade in commodities. If a
shoe manufacturer in Quebec ships his wares to a whole-
saler in Toronto, a debt is created in his favor from the
wholesaler, and this debt is exchange, domestic exchange, as
both parties live in the same country. This debt is payable
in the legal tender of Canada. Until the debt is paid it
belongs to the manufacturer, and he may sell it, or dispose
of it as he will. The usual course is for the manufacturer
to draw a draft for the amount of the debt on the Toronto
wholesaler, and discount it with his bank in Quebec — i.e., he
.sells the draft to the bank, which then becomes the owner
of so much Toronto exchange, or funds. These funds, or
exchange, the bank in turn sells to some one who has a debt
to pay in Toronto, or it may hold the amount iri Toronto,
and lend it to a customer of its branch in that city.
Foreign exchange is produced through the sale of com-
modities by an inhabitant of one country to an inhabitant of
another country. Countries do not trade with countries as
such. Trade is entirely between individuals. Foreign ex-
change is slightly more complicated than the domestic ex-
change, in that the settlement must be made in gold. The
principles are, however, the same. A Canadian exporter
ships grain to Liverpool, the result is sterling exchange — i.e.,
the right to money in Britain, which is made available
through the banking systems of Great Britain and Canada,
to discharge a debt owing by a Canadian firm importing
British goods, the transfers being made by bills of exchange.
The sum of similar transactions between two countries may
result in a balance due from one to another, and this differ-
ence is termed the balance of trade. It is this balance which
determines the rate of exchange. Theoretically this difference
is payable in gold, and the cost of shipping gold either way
will determine the premium, or discount, which the debtor
will pay, or the creditor accept, for a bill of exchange, in
preference to taking the trouble to ship the actual bullion.
There are other ways of avoiding the shipment of gold
between countries, the sale of securities and loans being the
chief methods.
The bank's relation to exchange is that of a merchant.
It buys and sells exchange in exactly the same way a grocer
deals in his wares. It buys, as be does, at wholesale prices,
and sells at retail, and its profit depends on the voldme of
its turnover.
Pre-War Quotationf, Near Par
In pre-war days, when foreign trade was on a normal
basis, the exchanges between countries fluctuated within nar-
row limits, and between Canada and the United States the
range varied in large transactions between 1/10 of 1 per
cent, above or below par, and for this reason the public gen-
ei'ally ceased to look on New York funds as foreign exchange.
One result was that the charge made, when a cheque on New
Yoi'k was negotiated, came to be looked on as a commission,
and now that these funds rule at a high premium, many still
persist in regarding it as a commission, or charge for ser-
vice. One great reason for the current misunderstanding in
the case of New York exchange is that the unit of value —
the dollar — is the same in both countries, as is also the
statutory gold contents of 25.8 grains 9/10 fine.
In normal times, thanks to our connection with Great
Britain, both politically and commercially, we were able to
obtain sufficient gold, or, what answered the purpose as well,
sterling exchange, to hold our funds at par, or close to it,
in New York. Now, however, owing to the change in the
financial relations between Great Britain and the United
States, the latter country becoming a creditor instead of a
debtor nation, our former source of supply has been cut off,
-for the present at least, and we have to rely on our own
resources. The result has been that the adverse balance in
favor of the United States has had its natural effect, and
our funds are at a discount in that country.
New York Rate is Important
The current rate for New York funds touches Canadian
economic life very closely, as, owing to our geographical
position and habits of trade, we are dependent on that centre
in all our exchange dealings with Europe, as well as those
with China and Japan. Before the war we puixhased chiefly
from the United States, and our chief exports were to Great
Britain, buying from the United States much more than we
January 7, 1921 THE MONETARY TIMES
'^IIIIIMinilMIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIHIIIlMlilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllll^
I IMPERIAL BANK I
I OF CANADA |
I Capital Paid Up $7,000,000 I
I Reserve Fund $7,500,000 I
i 214 Branches in Canada. E
E The Imperial Bank of Canada is a highly specialized organization, providing every =
E modern banking convenience at each of its 214 branches in the Dominion. =
= Since its establishment, over forty-four j'ears ago, this institution has enlarged its E
= capacities to meet the growing demands following Canada's steady development, and E
= takes pride in the efficiencj' of its service. ^
E Whether it be in connection with Collections of Drafts, Money Orders, Letters of E
E Credit, Government and Municipal Securities, a Savings Account or a Safety Deposit =
E Box, the special requirement of each individual client receives prompt and accurate =
E fulfilment. E
E Our Foreign Affiliations. E
While confining the sphere of our direct activities within the borders of the
Dominion, we are affiliated with strong banks abroad. Through their co-operation,
we are enabled to offer a complete world-wide financial service.
Agents in Great Britain Agents in United States
E England — New York — •
= Lloyd's Bank Limited, London, and The Bank of the Manhattan Company ;
I branches. Chicago— ;
E First National Bank \
I Scotland— Buffalo— j
E The Commercial Bank of Scotland, The Marine Trust Co. i
= Edinburgh, and Branches. Detroit ■
E First and Old Detroit National Bank :
I Ireland— ' San Francisco— j
E The Bank of Ireland, Dublin, and Wells-Fargo Nevada National Bank, i
E branches. and in all other principal centres. '■
E Agents in France i
E Lloyd's Bank (France) and the National Provincial Bank (France) Limited. •
I PELEG HOWLAND, President. W. MOFFAT, General Manager. I
I HEAD OFFICE - TORONTO |
?iiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
68
THE MONETARY TIMES
Volume 66
sold, and selling- to Great Britain much more than we pur-
chased from her. As the United States was then indebted
to Great Britain, we were able to transfer our claims against
Great Britain to the United States by selling sterling ex-
change in New York, and with the funds so obtained, settling
our debts in the United States. This kept the balances be-
tween us normal, and the question of a premium or a dis-
count on our transactions with New York was of compara-
tively little moment.
Now, however, this is all changed. We still rely on the
United States to furnish the bulk of our import require-
ments, but are unable to settle as formerly by selling ster-
ling in New York, neither can we ship gold, which is the only
accepted mediurn of settlement of balances between nations.
This for the good and sufficient reason that we have not the
gold to ship. The result is that there is competition in
Canada for New York funds, which must be purchased here
with Canadian money, and this competition has inceased the
price of the commodity, so that, at one time, the right to
receive $100 in New York, in funds current there, was worth
$117 in funds current in Canada. At the present time (Oc-
tober, 1920), the premium is 11 per cent.
Premium Goes to Canadian Sellers
The essential point to be kept in mind here is that
these funds are not purchased from the United States dealer,
but from a Canadian who owns the funds. It is he who gets
the premium from the Canadian purchaser. All the American
receives is the face amount of the invoice. For instance, a
Canadian dealer buys American goods to the value of $1,000
in the United States. The cost to him in Canada, with New
York funds at a premium of 11 per cent, will be $1,110,
but all the American seller receives is $1,000. He gets no
benefit from the premium, but the reverse, as it interferes
with his trade, making it harder for him to make the sale.
As our market for foreign exchange is in New York, this
premium must be allowed for in all transactions involving
payments abroad. In its final analysis, when we have a pay-
ment of, say, £1,000 to make in London, the transaction
simply is an exchange of commodities. Suppose sterling in
New York is quoted at 3.45 and New York funds here at
11 per cent, premium, the rate for sterling here would be
3.83. The Canadian would purchase, with $3,830, the right
to receive $3,450 in New York, and with this would buy the
right to receive £1,000 in London. Of course the transaction
would go through the Canadian bank, and the £1,000 draft
would be drawn on its London correspondent, but the bank
would have to buy sterling in New York to enable it to accom-
modate its customer.
For many years the Canadian system of quoting ster-
ling obscured this. Prior to confederation, the legal par of
exchange was at the rate of $4.44 4/9 to the pound sterling,
and when this ratio was changed to $4.86%, as it is to-day,
it was found that the new par was 9V2 per cent, premium
on the former. For some reason unknown at the present
time, the system of quoting sterling at a rate of premium
per cent, advance %r\ the rate of $4.44 4/9 was adopted, and,
in spite of its absurdity, resisted all efforts to change it.
When the war broke out the exchange market became de-
moralized, and the quotations outran the exchange tables in
use, so that dealers were forced to adopt a commonsense
method and quote in dollars and cents. In other words, they
had to mark the prices of their wares in plain figures.
Normal Adjustment Was Simple
In normal times, the adjustment of rates of exchange be-
tween countries was a comparatively easy matter, and the
course of exchange could be foretold, according to the season,
with fair accuracy, but since the war the exchange markets
have been thrown out of gear like everything else.
The balances between countries have become so huge that
settlement by shipment of gold is utterly impossible, and
the systems of adjustment formerly used quite inadequate.
Plans are being- made for the creation of large credits in the
United States, which is at present practically the only
creditor nation, and when these are effective the abnormal
exchange situation will correct itself in time.
Effect on Customs Rates
When foreign exchange is at a heavy premium, it oper-
ates as an increase in the customs tariff on imports. Ameri-
can exchange at a premium of 11 per cent., is equal to an
increase of 11 per cent, in the Canadian customs tariff on
American goods, and conversely sterling exchange, now
quoted at 3.84 in Canada, or a discount of 21 per cent., is
equal to a reduction in the Canadian tariff on British goods
to this extent. Until recently this was nullified by the cus-
toms authorities calculating the import duty on the par of
exchange, no matter what the depreciation of the foreign
currency. This absurdity was at last realized and partially
corrected, so far as importations from any country other
than the United States is concerned. American invoices are
valued at par and duty collected on that valuation, though
in reality the actual value here is greater by the amount of
the current premium on New York funds.
Much has been said as to the prospects of foreign trade
with Europe after the war, and it will be well to realize the
effect of exchange on the export of goods from Canada and
the United States, as the discount on foreign funds here will
naturally increase the price which the foreigner must pay
in his own currency for Canadian goods. Canadian exports
to Europe will, for this reason, be materially increased in
price to the foreign consumer. For instance, Ontario winter
wheat, worth, say, $2 at shipping points in Canada, which in
pre-war days would cost the British buyer 8s. IV^d. a bushel,
will, with sterling at a discount of 21 per cent., cost him
10s. 3d. a bushel. Sterling at a discount here means that in
Great Britain Canadian funds are at a premium and this
premium will have exactly the same effect on the prices of
Canadian goods in Britain that the premium on New York
funds in Canada has on the price of American goods here.
There are countries where British funds are at a premium or
at par, and this will impel the British consumer to buy from
those countries rather than from Canada.
Trade follows the line of least resistance always. The
old slogan that "trade followed the flag" was true, un-
doubtedly, in normal times, when the only barriers were
those deliberately raised by the various countries with the
avowed intention of turning trade into certain channels. The
war has, however, brought about entirely new conditions,
as evidenced by abnormal exchange rates everywhere, and
trade at present is adjusting itself to meet them.
New York Controls Canadian Rate
The main dealings of Canadians in exchange are with
the United States, Great Britain and France, and on the
Pacific Coast China and Japan, and with all of these we are
dependent on the New York exchange market for rates, as
that city is the exchange centre for this continent. Trade
in exchange, as in other commodities, follows the line of least
resistance, and, as New York is the market where exchange
can be most readily bought and sold, transactions naturally
are handled there. It is all a question of supply and demand.
The trade in exchange is of mutual benefit, just as is trade
in other commodities, and unless there is a mutual profit
there would be no trading. The essential part of trade is
that there shall be mutual consent.
Methods of Calculation
The methods of calculation in exchange are simple, if
the commodity idea is kept in mind, and the following ex-
amples will make it clear: —
Sterling Exchange
The par of sterling exchange is $4.86% to the pound.
At present prices, the pound is quoted at 3.45. The Canadian
rate will be the same, plus or minus the premium, or dis-
count, on New York funds in Canada. The premium is, say,
11. per cent., and the Canadian rate for sterling, therefore,
would be 3.45 plus 11. per cent, of itself, 3.45 + .37.95. or
January 7, 1921
THE MONETARY TIMES
American Baniv Note Company
17!).-,
CA >• A DI AX INC* >K I 'OK A TTON
1S!>7
HEAD office; AND WORKS
224 WELLINGTON STREET - - OTTAWA
FIREPROOF BUILDINGS
BRANCH OFFICES
TORONTO MONTREAL WINNIPEG
STEEL PLATE ENGRAVERS AND PRINTERS
CONTRACTORS TO THE GOVERNMENT OF CANADA FOR DOMINION NOTES,
POSTAGE AND REVENUE STAMPS. ENGflAVERS OF BANK NOTES FOR
THE CHARTERED BANKS OF CANADA. RAILVifAY, CORPORATION AND
COMPANY BONDS, MUNICIPAL DEBENTURES, STOCK CERTIFICATES,
LETTERS OF CREDIT, CHEQUES, DRAFTS AND OTHER SECURITIES.
WORK ACCEPTABLE ON ALL STOCK EXCHANGES.
70
THE MONETARY TIMES
Volume 66
0.8295. These calculations are usually based on £100 as a
matter of convenience in the ai-ithmetical work, thus: —
New York rate per £100 345.
Fremium on New York funds in Canada ll.'/t 37.95
382.95
£100 in Canada would be worth $382.95. The quotation is
always made on the single pound, therefore the quotation
would be .$3.8295 per pound.
The bulk of stei-ling transactions are by cable, or by
demand, or 60 days' sight bills, and in arriving at the rates
lor these interest on the demand rate is allowed for, and
for bills other than demand or three days' sight and under,
the stamp tax of Is. per £100, or fraction thereof, must be
calculated. In figuring the interest, the calculation is made
on the demand rate, with three days of grace on all items
drawn at any time over demand or sight. The year is taken
at 365 days.
Example:
If demand cheque rate is 3.45, what would be the rate
for 60 days' sight. New York funds in Canada, 11. per cent,
premium.
Premium on New York funds in Canada 11. ^r 37.95
New York demand cheque rate 345.
Deduct: 382.95
Stamp tax of Is. per pound. This is taken
as 1 20 of I'f 191
63 days' interest on 382.95 at the open mar-
ket rate in London, not Bank of England
rate, say 6%
382.95 X 6 X 63 3.991
365
4.182
Canadian rate, 3.7877. 378.768
This would be the basic rate, or let us say, the wholesale
price at which large blocks could be bought and sold be-
tween banks. If a bank wanted to make, say, M of 1 per
cent, on the transaction, this would be allowed for before the
rate was quoted to the customer, and would work out as
follows: —
Premium 37.95
New York demand rate 345.
Deduct: 382.95
Stamp 1/20 191
Interest 63 days at 6% 3.991
Vi profit 957
■ 5.149
Canadian rate, 3.778. 377.801
If the bank were selling the bills, the Vi per cent, profit
would be added to the rate as follows: —
Canadian basic demand rate 382.95
Stamps 191
Interest 3.991
4.182
H profit 957
3.225
Canadian rate, 3.797. 379.725
In normal times, rates for cables are simply the rates
for demand cheques, plus the interest on the estimated time
which would elapse before a remittance by demand draft
could reach London, this depending, of course, on the closing
and sailing of mails. Ten days was the time usually allotted
in such cases.
Example :
New York demand cheque rate 346.
Premium on New York funds 11.' > 38.06
384.06
Add:
10 days' interest at open market rate in
London, say 69c
Canadian cable rate, 3.847.
384.70
French Exchange
French exchange, or, as it is often termed, franc ex-
change, was formerly in New York and is still in London
quoted at so many francs and centimes per foreign unit,
pound or dollar. The efi'ect of this was that as the quota-
tion in francs rose the lower became the value of the franc.
At par the rate was 5.20 — i.e., 5 francs 20 centimes -to the
dollar. At this rate the franc was worth 19.3 cents. At
present (October, 1920) it is worth about 6V2 cents. New York
quotations until very recently were in francs per dollar, but
now are given, like all other exchange in that market, in
dollars and cents per foreign unit. It has been suggested
that the basis of quotation shall be 100 francs, and this may
possibly be adopted.
In Canada banks have usually quoted in cents per franc,
owing to the question of premium or discount on New York
funds as the premium or discount must be on the amount
of dollars to be paid, not on the francs purchased.
The method of calculating interest on franc exchange
diflrers from sterling in that there are 40 days of grace, and
the year is taken at 360 days as in New York. Formerly,
the interest was calculated on the par of exchange, 5.20
francs to the dollar, or 19.3 cents per franc, but now, as in
sterling, intei'est is calculated on the active quotation for
demand cheques.
The stamp duty on cheques is 10 centimes each, if pay-
able in the town where they are drawn, otherwise 20 cen-
times. At par this would' be 2 and 4 cents, respectively,
as the franc contains 100 centimes. The stamp duty on
cheques is not considered in exchange calculations. On bills
of exchange the stamp duty is 5 centimes per 100 francs, or
1/20 of 1 per cent. For quotation purposes, this is reckoned
on the quoted rate.
For instance, under the old system of francs per dollar,
the 60-day rate would be worked out as follows: —
Demand cheque rate 1540.
Add interest on 1208 60 days at
Bank of France rate, say, 7% ■ ■ 17.98
Stamp, 1/20 77
18.75
1558.75
The rate, therefore, would be 15.58% francs per dollar,
the calculations being made on the equivalent of $100 for
the sake of convenience.
In this case the interest and stamps would be added
in order to reduce the price, as a 60-day bill would be worth
less than a demand cheque by the amount of interest and
stamps.
Under the present method the rate for 60-day bills is
found as follows: —
Demand cheque rate 650.
Deduct:
Interest 60 days at 1'', 7.583
Stamps, 1/20 375
7.958
642.04
The rate would be 6.42 cents per franc.
To find the Canadian rate the premium on New York
funds would be added to the New York price, just ;'..• it is
with sterling. At the present time, however, the question
of 60 and 90 day rates for exchange of any kind is largely
academic, as, owing to the uncertainty of the exchange mar-
kets, practically all remittances abroad are by cable or de-
mand drafts.
i
January 7. 1921
THE MONETARY TIMER
Head Office Building, Montreal
BOARD OF DIRECTORS:
W. MOLSON MACPHERSON.
President
S. H. EWING. Vice-President
W. M. BIRKS. W. A. BLACK
J. M. MclNTYRE F. W. MOLSON
JOHN W. ROSS
EDWARD C. PRATT
General Manager
THE
MOLSONS
BANK
INCORPORATED 1855
Capital Paid Up $4,000,000 Reserve Fund $5,000,000
OVER 130 BRANCHES
IN CANADA
A General Banking
Business Transacted
Savings Bank Depart-
ments at all Branches
The Standard Bank
OF CANADA
Established 1873
Capital Authorized .... $ 5,000,000.00
Capital Paid-up 3,500,000.00
Reserve Fund and Undivided Profits 4,860.537.09
Total Assets . . . over 95,000,000.00
179 BRANCHES THROUGHOUT THE DOMINION
HEAD OFFICE
15 King Street West
TORONTO
C. H. EASSON.
General Ma
J. S. LOUDON.
Asst. Gen. Manage
Buy and Sell Foreign Exchange and Cable Transfers.
Issue Commercial and Travellers" Credits and Cheques, ne-
gotiable in all countries.
Make Collections in all the Provinces, United States, Europe
and the Orient at most favorable rates.
Assure prompt and efficient service.
Savings Bank Department at all Branches
Correspondence Invited
THE MONETARY TIMES
Volume 66
Publicity Methods in the Banking Field
Greater Attention to Advertising Reflects Keener Competition Among Banks —
Commercial Methods Utilized — Topical Booklets, Monthly Letters, House
Organs and Street Car Publicity Now Supplement Advertising in Press
By J. H. HODGINS.
Manager, Statistical Department, Union Bank of Canada, Toronto
MEASURABLE progress has been made since the war in
the development of bank publicity in this country along
more modern lines. In the evolution of newspaper effort, and
more specifically publicity and advertising, there is probably
no more interesting phase than that which concerns the atti-
tude of Canadian bankers.
For so long our bankers have been regarded as ultra-con-
servatives; for so long a bank "card" represented the consum-
mation of the banker's advertising expression. Our bankers
have been among the last of the advertisers seeking extension
of business to try out the effectiveness of the "human interest"
appeal. Tlie change has come in more or less subtle fashion,
but sufficient evidence of real "pep" has already been fur-
nished by Canadian bank advertisements and by various inter-
esting publicity-getting methods of the last year to indicate
that our bankers have followed the trend of the times.
AA'ar Effort Pointed the Way
The greatest achievement of modern publicity has been
the development and propagation of ideas. Out of the neces-
sities of the war period came the need for vast public borrow-
ing by governments; thrift and production had to be engen-
dered. How was all this accomplished? By propaganda
advertising. We have but to look back to be more fully im-
pressed with the gigantic effort that was pushed through to
previously undreamed-of successes through the sheer force of
publicity and advertising. As an immediate result all adver-
tising effort has taken on an added dignity, an increased
value.
It has been demonstrated that bank advertising may
remain dignified and yet have a "punch" to it. Similarly, no
individual, however grand, sacrifices his "dignity" because he
• smiles. You are not attracted by a gloomy advertisement but
rather to the one that i-adiates cheer. Aftei- all, why should a
bank advertisement be more stereotyped in its form than any
form of advertisement?
Canada's war loan experiences were the same as Eng-
land's. Our finance minister had to "sacrifice dignity" and
get dovm to the level of the masses through the popular
phases of publicity. A million dollars in cold figures had first
to be "interpreted" in tei-ms of bullets before the man on the
street caught the real significance of the country's great
need.
Linked With Agriculture
It is given to our banks in their advertising to be con-
structive, nationally. A great deal may be accomplished to-
ward further driving home the truths of national propaganda,
as witnesseth the campaigns carried on by many American
financial institutions during the war period, when thrift was
paramount, when food conservation was vital. Here in Can-
ada — ■ where the bond between banker and farmer must neces-
sarily be intimate because the country's basic industry is that
of the soil — our banks may accomplish much from the agri-
cultural viewpoint. On more pi-ogressive lines the banks' cam-
paigns may be directed toward greater production where lower
yields threaten, be it in wheat crop or cattle herds. Our
banks actually have furnished the financial energy necessai-y
in the growth, transportation and marketing of Canada's vast
crops, but our bankers are only now awakening to the need
for educating the agriculturists of Canada to a fuller appreci-
ation of the gigantic task which the banks perform for the
Canadian farmer from year to year.
Likewise it is given to the banks to direct public thought
along the lines of constructive spending.
Bankers are coming to regard advertising and publicity
along broad lines. More recent bank advertising in this coun-
try has done much to broaden the public's vision of interna-
tional trade, a factor to which the average Canadian directed
but scant thought before the pressure of war production ad-
vanced our industrial plant to its present proportions — - and
has thus enlightened the average citizen as to the future.
Undeniably banking is becoming more and more competi-
tive in Canada. There are only eighteen chartered banking
institutions, but these eighteen banks have some 4,800 branches
thi'oughout the Dominion, and each and every branch manager
knows full well the keen race for business which he must run
against competitive managers. The I'esult is a very consider-
ably stimulated publicity programme.
New York Agencies Take Lead
Probably some of the most progressive methods of pub-
licity which our bankers have employed have been undertaken
by the New York agencies of Canadian banks in their effort
to make Canada better known throughout the United States.
The Union Bank of Canada early initiated an educational cam-
paign, through the issuance of two booklets, "Canada and Its
Potentialities," and a little later, "Trade Acceptances: Cana-
dian Practise," which was a treatise timed when the trade
acceptance was being introduced into the American banking
system. This subtle form of Canadian propaganda was fur-
ther supplemented by advertisements designed to sti-ess Can-
ada's rich resources. Closely allied with this publicity, direct-
ly in the interests of Canada and indirectly, of course, in the
interests of the advertising bank, was that undertaken by the
Canadian Bank of Commerce and by the Dominion Bank,
which further served to draw attention by picture and by
word message to our provinces and our cities. The Royal
Bank of Canada during the year issued for New York distri-
bution a booklet of Canadian statistics, and the Bank of Mont-
real, in a pamphlet, informed the American investing public
regarding Canada's war loans.
The Topical Booklet
The topical booklet has come to be a dominant factor in
financial advertising, and our bankers liave been quick to ric-
ognize it as a potential direct medium. The foremost banking
institutions of the United States within the last few years
have made extensive use of the booklet as part of their pub-
licity programmes, and their continued efforts in this direction
indicate clearly their satisfaction.
More recently the Union Bank of Canada, as part of a
campaign to attract American manufacturers to the Dominion
has brought out a booklet, "A Canadian Plant — Why?" the
title of which is significant of its plea. The vagaries of the
foreign exchange situation have recently been clearly ex-
plained to the layman by the Canadian Bank of Commerce's
iDOoklet and by "Protecting Your Canadian Customer," a book-
let of the New York agency of the Union Bank of Canada
which was primarily ^\^■itten for the education of the Ameri-
can exporter to Canada. The Bank of Montreal has issued
"The British West Indies and British Guiana," which, after
all, is propaganda in attractive form, and of pertinent interest
to Canadian business men was the Union Bank of Canada's
booklet upon "The Canadian Stamp Tax," meeting immedi-
ately the needs of a like situation created by the income taxes
to which several Canadian financial institutions catered with
carefully indexed booklets citing the law for the average
reader. In publishing these and similar booklets our bankers
unquestionably are furthering the public service of our banks
Januaiy
THE MONETARY TIMES
(Eompaiig of Qlanaba, HtmttPii
HAMILTON, ONTARIO
Paid-Up Capital, $500,000
Reserve, $125,000
Executor, Trustee
Administrator, Etc.
The Company will act as Agent for Executors
or Trustees who desire to be relieved
of the Management of Estates.
All Business under direct supervision
of the Executive Committee
BOARD OF DIRECTORS :
Cyrus A. Birge, President
Col. H. L. Roberts and James Turnbull,
Vice-Presidents
T. C. Haslett, K.C, Chairman Executive Committee
C. C. Dalton, A. E. Dyment, J. J. Greene,
Sir Jolin S. Hendrie, K.C.M.G., J. F. Kavanagh,
Col. John r. McLaren, Lt.-Col. W. H. Merritt,
Maj.-Gen. Hon. S. C. Mewburn, Stanley Mills,
C. S. Wilcox, W. A. Wood.
S. C. Macdonald, Manager
A Trust Company organized and equipped
for service to you and your family.
Incorporated by Special Act of Parliament
ol the Dominion of Canada.
Auihorize^t to act in all Trust Capacities.
Prudential Trust Company
LIMITED
Capital Stock Authorized, $1,500,000
Subscribed, $1,000,000 Paid up, $609,611
Reserve Account, $100,464.27
Real -Estate & Insurance Departments
B. HAL BROWN, President and General Manager
J. P. SPEEDIVIAN, Vice-President
Head Office
MONTREAL
Toronto Branch— Union Bank Building
Cor. King and Bay Streets.
Other Branches —
Winnipeg Edmonton
Regina Vancouver
London, England
St. John
Halifax
THE SASKATCHEWAN MORTGAGE AND
TRUST CORPORATION, LIMITED
Paid-Up Capital and Reserve -
$950,000
The oldest and largest Trust Company in Saskatchewan. Real Property Managed.
Estates Administered. Acts as Agent lor Executors and Trustees who
desire to be relieved of the management of Estates.
Money invested for Clients on Agency or Guaranteed Plan. Acts as Trustee under
Bond Issue.
INCORPORATED BY SPECIAL ACT. A.D. 1909
Executor Administrator Liquidator Trustee Guardian Etc.
DIRECTORS :
A. E. WHITMORE. Vice-President
A. W. MacGREGOR S. C. BURTON
HON. A. P. McNAB R. M. JOHNSTON
A. G. RAWLINSON
R. A. KIRKWOOD, Secretary
J. F. BOLE, President
F. N. DARKE
MAJOR F. J. JAMES
JOHN F. REID
C. V. SMITH, Manager
102 Darke Block - Regina, Saskatchewan
74
THE MONETARY TIMES
Volume 66
■ — in an educational way — while seizing the opportunity for
publicity of the kind that makes a real appeal to the public.
The Illustrated Advertisement
The illustrated bank advertisement is probably the latest
development in this country. As far as I am aware, the Union
Hank of Canada's "Park-Union" series was the first among
Canadian bank advertisements to be seriously treated by an
artist. These advertisements, primarily designed to empha-
size the extended international services offered through this
unique organization, were made attractive with "local atmos-
phere." As an example: The advertisement which told of the
bank's London (England) connections was illustrated with a
picture of busy Threadneedle Street and the Bank of England
as a background. Since, the Canadian Bank of Commorc;
has issued several attractively illustrated advertisements, and
the Bank of Montreal, long regarded as ultra-conservative in
its advertising, brought out a new series with sketches of the
bank's head office.
The serious illustrating of bank advertising is not a cas-
ual development. Rather it represents a conviction among
professional advertising men who have studied their publics
that a picture drives home its message even more quickly than
the printed word. Probably, too, the influence of the Victory
Bond posters has been carried into our bank advertising.
Coming Down 'o Public
Canadian. bankers of late hava indeed branched into hith-
erto imexploited fields of publicity. The silk-hatted banker
of the old school would be shocked iio doubt to see ban'^t adver-
tising beckoning, cheerily, at him from the street cars — driv.
ing home a message of thrift and saving to the average indi-
vidual of the community. Our banks are now advertising in
the street cars of almost all our Canadian cities. Some bank-
ers there are who have come to recognize electric signs and
the "movies," but comparatively few may be said to bo "soiu"
for advertising other than that appearing in the newspapers,
trade journals and well-recognized magazines. In other
words, the press is still the most completely accepted medium
for bank publicity.
The Canadian Bank of Commerce, the Royal Bank of Can-
ada and the Merchants Bank of Canada, as outstanding exam-
ples, have come to regard the monthly commercial letter as a
potent factor of publicity. The commercial letter may be
said to be a consistent supplement to the topical booklet.
The House Organ
Not all bank publicity is being done publicly, however.
The house organ is being adopted within several of our bank-
ing organizations. Already the Sterling Bank, the Home Bank, .
the Union Bank of Canada, the Canadian Bank of Commerce,
the Royal Bank and the Dominion Bank are publishing-
monthly magazines solely in the interest of their staffs. The
mission of the bank organ primarily is to develop an espint
de corps or a staff loyalty, but there is no gainsaying its
measure of publicity even if only within the bank's own
organization.
From the "exterior" or public viewpoint the coming of
the bank organ should not lightly be dismissed. The bank
organ unquestionably will accomplish much toward further
improving the public service rendered by our banking institu-
tions. As a literary contribution to our banking history it
will no doubt exert its influence in due season, while at the
same time offering an interesting contribution to the art of
printing and to the trade of publishing.
A bank organ is particularly desirable for a Canadian
bank under the Canadian system of branch banks. By this
medium the bank's representatives at the frontier posts — ■
and there are still many in this wide-flung Dominion — may
be kept in intimate touch with the passing events of the home
office. The bank organ may be made to fill much the same
purpose of the small community weekly whose item of news,
"Bill Smith has shingled his barn this week," is of more vital
concern to the home-town boy far removed from his native
hearth than events duly chronicled in display headings on the
front pages of the metropolitan dailies.
Canadian bankers clearly have reached a finer and a
keener appreciation of the arts and subtle influences of pub-
licity and advertising. All that remains is a fuller realization
of the fact that bank advertising to be completely effective
must become increasingly "popular," for the average man or
woman is the individual whom the banks would reach to-day.
GOLD AND DOMINION NOTE HOLDINGS LOWER
Since the beginning of 1918 the holdings of gold and
subsidiary coin of the banks in Canada have decreased to
quite a large extent. In January of the year mentioned
these holdings totalled §95,785,084, reaching that point, which
is the high record, after increasing during the years previous.
Since then, outside of slight fluctuations, there has been a
continued downward movement which reached the bottom in
December, 1919, when the figure was $84,213,438. There has
been a slight improvement during the- past year, but not of
much account.
The decline in these holdings has also been accompanied
by a similar movement in holdings of Dominion notes, com-
mencing in December, 1918. From that date the movement
continued downward until October, 1919, when it started up-
ward. The climax was soon reached, however, and in April,
1920, the trend was again downward, and this time more pro-
nounced.
Although it would seem from this that the cash position
of the banks has become weaker, such is not the case. Call
loans in New York, which are considered equivalent to cash,
have increased to such an extent that the decline in gold and
note holdings is more than offset, and to quite a considerable
sum. Call loans in New York at the beginning of 1918
amounted to $132,687,066, while according to the latest bank
statement the figure is now $188,367,459. It is more profit-
able for the banks to keep substantial amounts on call in
New York, when they are not only available within twenty-
four hours as cash but are also drawing interest.
The following table shows the average amount of hold-
ings of gold, subsidiary coin and notes, each month since
January, 1918: —
Gold and Dominion
1918 — Subsidiary coin Notes
January $95,785,084 $195,927,684
February 94,366,989 192,207,106
March 93,181,192 182,330,656
April 93,013,608 179,705,307
May 88,667,684 189,025,969
June 85,815,276 199,932,537
July 85,933,634 204,179,801
August 85,808,338 207,814,241
September _- 86,476,973 210,088,479
October 86,117,756 205,.332,680
November 87,200,769 214,022,846
December 87,884,146 208,019,191
1919 —
January $86,168,445 $197,739,973
February 85,725,951 191,441,588
March 86,098,447 181,102,320
April 84,953,140 174,131,071
May 84,809,908 177,456,695
June 85,656,571 171,392,969
July 86,236,599 176,544,418
August 86,079,703 177,327,436
September 87,170,499 168,260,462
October 86,492,301 166,437,341
November 86,517,911 172,997,904
December 84,213,438 172,690,695
1920 —
January $86,641,270 $177,501,154
February 87,668,936 177,099,303
March 87,396,939 182,212,025
April 88,865,085 170,320,595
May 86,487,324 170,012,109
June 86,460,864 166,192,824
July 87,471,926 164,680,676
August 86,332,046 172,509,202
September 86,944,667 172,047,610
October 86,211,873 173,008,938
January 7, 1!»21
THE MONETARY TIMES
Canadian Financiers Trust Company
INCORPORATED 1907
Government, Municipal and Corporation Bonds
To Yield 5.90% to 7!%
For Investment
We have a very complete list. Before investing secure particulars of our offerings.
Commutiicate ivifh us for all Trust Agency
and Investment Business in British Columbia
HEAD OFFICE
VANCOUVER, B.C.
General Manager: LIEUT.-COL. G. H. DORRELL.
The
Montreal City and District
Savings Bank
Head Office and Sixteen Branches
in Montreal.
A. P. LESPERANCE
General Manager
T. TAGGART SMYTH
Assistant General Manager
Executors & Administrators
Trust Company
Authorized Capital
$1,000,000
HEAD OFFICE:
10 Central Chambers
MOOSE JAW - SASK.
Authorized to act as
Executor, Administrator and Assignee
BOARD OF DIRECTORS:
A. W. Irwin, President; J. H. Wellington, First Vice-
President; R. H. Clark, Second Vice-President.
Wm. Grayson, K.C., W. F. Dunn, L. M. Rosevear,
A. R. Bie, H. F. Stirk, J. W. Sifton.
W. A. MUNNS, Manager.
(Official administrators for the Judicial District of
Moose Jaw, Sask.)
THE MONETARY TIMES
Volume 66
Bank Circulation Higher Than in 1919
More Notes Outstanding at End of Each Month Than for Corresponding
Months in 1919 — Maximum is Reached in November and Minimum in
Early Summer — The Security for Bank Notes and the Service Rendered
UNDER the Bank Act banks are authorized to issue notes of
the denomination of $5 and multiples of $5 up to the
amount of their paid-up capital. They are also permitted to
issue in excess of the capital by depositing in the Central
Gold Reserve an amount equal to such excess in gold or Do-
minion notes. In addition each bank may, during the crop-
moving period, from September 1 to April 30, inclusive, issue
up to 15 per cent, of its combined capital and rest, and on
this excess interest must be paid the government at the rate of
5 per cent, per annum by way of tax. As a war measure this
excess was authorized by the Finance Act of 1914, during the
balance of the year, but this has not been availed of to any
extent for the last year or two, the banks preferring to use
the gold reserve.
The Finance Act of 1914 also authorized advances by the
government to the banks, by the issue of Dominion notes
against approved securities. The bank statement issued
monthly by the government does not show to what extent this
has been availed of. Just why this information should not be
given is not apparent, as in making advances in this way the
government is merely performing the same service to the Can-
adian banks and public that the Federal Reserve Banks in the
United States were organized to do in that country.
Effect of High Prices
The high prices of commodities, due to the inflation
through war conditions, made an increase of circulating me-
dium imperative, and this W0,s the safest and most conserva-
tive plan of providing a fully-secured currency. When prices
fall, as appears probable, the currency will reduce accordingly,
thanks to the system of daily redemption of bank notes, which
is one of the outstanding features of our Canadian system of
banking.
This system by which each bank daily sends in for re-
demption through the clearings all notes of other banks re-
ceived in the course of business is the chief method by which
the elasticity of currency throughout the country is preserved.
Under it the circulation outstanding is only that amount
required for the actual business needs of the community, any
excess being promptly retired in the ordinary course of daily
business.
Large Increase in 1920
During 1920 bank circulation, as shown by the compara-
tive table below, has greatly increased in volume over the pre-
vious years:
Monthly Average Highest point
In 1917 $190,000,000 $196,000,000
In 1918 200,000,000 2.34,000,000
In 1919 235,000,000 237,000,000
'\^^ile the figures for December are not yet available, the
average for the year 1920 will be about $20,000,000 more than
the year preceding. In the past the highest point each year
has been in November, and for the year 1920 the same result
can be looked for.
Security for the Notes
The bank circulation is frankly an asset circulation, the
notes being a first charge on the bank's assets. On this basis
it will be interesting to know the security behind the issues.
Under the section of the act requiring a deposit of a i-edemp-
tion fund equal to 5 per cent, of each bank's circulation, the
effect is to make the banks as a whole responsible for the
circulation of any one bank. For this reason the charter of
the Canadian Bankers' Association gives the officials of that
organization authority to inspect the records of issue of each
chartered bank, in order to prevent an over-issue of circula-
tion. So far as the banks are concerned their issues have
been handled in a most consei-vative way, anything in excess
of the paid-up capital being covered by deposits in the gold
reserve.
The total circulation outstanding on August 31 was $227,-
378,864; of this $103,162,533 was covered by the deposit in the
gold reserve which offsets the liability of the banks to that
extent, leaving in round figures $124,000,000. At the same
date the banks held gold coin in their vaults amounting to
$879,954,831, or 64 per cent, of their issue not covered by the
deposit in the gold reserve.
The total assets of the banks, less the gold reserve which
specifically secures part of the issues, amounted on the same
date to $2,968,017,294. The notes are a first charge against
these assets, so that for each dollar of circulation outstanding
there are $24 of assets for the security of the public.
What Return Is Given?
The circulation privilege of the banks is sometimes criti-
cized on the ground that the banks give no adequate return.
Without circulation, however, the banks' power to extend
credit would be greatly reduced, and the usefulness of the
branch system decidedly impaired.
As the notes are not currency until issued it is possible
for the branches to carry their funds in this form without
expense. Owing to public confidence in the security behind
them these notes pass as money in the ordinary course of
business, and outside of silver for change the branches there-
fore require no specie, and the reserves of gold and Dominion
notes are kept intact in the main offices, where they are read-
ily available when wanted. The use of the notes is merely
an extension of the credit system by which all business is car-
ried on.
There is another feature of banking in this connection
which is not fully appreciated. This is the amount in transit.
Cheques and notes of other banks are received daily and cred-
ited to depositors. The bank does not receive actual payment
for these until the following day, and it therefoi-e constitutes
an advance until payment is actually received. It is in effect
a continuous free advance to the public. To il'ustrate: The
circulation outstanding on August 30 last, less the amount
covered by deposit in the gold reserve, was $124,000,000.
Against this $30,000,000 of cash reserves is applicable, leav-
ing the loanable balance $94,000,000. On the same date the
banks held in cheques and notes of other banks, credited to
depositors but which the banks had not yet received settle-
ment for, $158,540,830, which far more than offsets the loan-
able fund derived from the circulation.
The following table shows the totals of the bank circula-
tion by months for the last four years. The rise and fall
during the year indicates the course of business demand, while
the steady increase year by year shows tlie result of the
steadily rising price of commodities, which has been chiefly
responsible for the increase in the current medium of ex-
change.
Circulation by Months
The amount of notes outstanding at the end of each
month for the past three years, as shown by the banks' state-
ments to the department of finance, have been as follows:
1918 1919 1920
January . $171,674,464 $203,424,472 $216,691,916
February 176,369,296 204,779,750 223,377,781
March 191,058,404 214,576,070 225,769,628
April 180,654,964 208,958.572 223,387,731
May 181,889,959 215,895,050 226,335,037
June 194,681,710 217,608,195 227,775,253
July 187,865,833 206,906,941 231,534,233
August 200,839,660 222,461,915 227,373,864
September 211,623,856 225,907,997 231,094,885
October 227,597,808 236,477,479 249,165,707
November 234,982,978 237,547,162
December 224,501,117 232,486,734
January 7. lOiil
THE MONETARY TIMES
77
The
Yorkshire & Canadian
Trust, Limited
Established 1889 in Vancouver
A General Trust Company Business Transacted.
TRUSTEE
EXECUTOR
ADMINISTRATOR
LIQUIDATOR
ESTATES MANAGED
INSURANCE EFFECTED
BONDS BOUGHT AND SOLD
REAL ESTATE AGENT
YORKSHIRE BUILDING, VANCOUVER. B.C.
General Manager H. W. DYSON
British Canadian Trust
Company
Head Office — Conybearc Block
LETHBRIDGE, ALBERTA.
Inc(1ki'oraTkii bv Special Ordinanck oi; thI'
NoKTHwKsT Territories of Canada.
(1901 Chapter 35.)
Authorised to act as
EXECUTOR, ADMINISTRATOR,
TRUSTEE, GUARDIAN.
Genera/ Financial Agents.
V. p. CONYBKARK
President
GEO. H. STAGEY
Vice-President
(IKO W.M. PARSONS
Manager
Authorized Trustee under Dominion
Bankruptcy Act.
Taylor Safes
STAND THE TEST
They have been considered the
standard of excellence for 65 years.
One Quality
One Price
J. & J. TAYLOR, Limited
Toronto Safe Works
Toronto
Branches . MONTREAL WINNIPEG VANCOUVER
THE MONETARY TIMES
Volume 66
Four Legal Decisions Affecting Trust Companies
Canadian Shareholder Held Liable For Double Liability Provision in Minnesota
— Interpretation of Will in Nova Scotia — Executors Held Personally Liable in
Alberta Case — Charitable Bequest Need Not Be Spent in New Brunswick
OF the cases before the Canadian Courts during the past
year, dealing' with matters of interest to trust companies,
four have been selected for consideration in this review as be-
ing of special interest. The first case to be considered is that
of Allen vs. Standard Trust Company, in which Justice Gait
decided that the estate of a British subject who had bought
and received shares in an American company was liable under
the double liability clause which it was claimed obtained in the
case.
The relief claimed was $5,000, being the par value of
50 preferred shares of the O. W. Kerr Co., held by the late Sir
William Whyte. The plaintiff Allen sued as the receiver of
the 0. W. Kerr Company, which is a foreign company, incor-
porated in the state of Minnesota, head office in Minneapolis,
and doing business as vendors and purchasers of real estate;
the Standard Trust Company is the executor of Sir William
Whyte's estate. The basis of the plaintiff's claim consisted
in a double liability alleged to attach in favor of creditors to
every share of stock issued by a corporation which has become
insolvent.
The present case was argued by the defendants mainly on
the ground that the plaintiff was seeking to enforce against
the defendant a personal judgment obtained in Minnesota
.against the late Sir William Wliyte, a non-resident, and with-
out notice. But the action was not upon any personal judg-
ment, nor were the appointment of the receiver nor the assess-
ment levied on shareholders carried on without notice, for the
manager of the defendant company produced papers showing:
(1) That notice of a special meeting of the Kerr Company to
consider its financial difficulties was sent to Sir William
Whyte; (2) the receipt of a copy of an order from a Minne-
sota court regarding the appointment of a receiver for the
company; (3) that a copy of an order made by the Minnesota
court in regard to the enfoixement of double liability on the
shares in question was received. Thus notice of all proceed-
ings was given Sir William Whyte.
Minnesota Law to Govern
In regard to the double liability question the court is
quoted as follows: "The liability sought to be enforced against
the estate of the late Sir William Whyte is a constitutional
liability expressed in the statutes as follows: 'Each stock-
holder in any corporation, excepting those organized for the
purpose of carrying on any kind of manufacturing or mechanical
business, shall be liable to the amount of stock held or owned
by him.' The constx-uction placed upon this provision by the
Supreme Court of the United States, and now applied by the
courts in Minnesota, is that it is a provision intended to pro-
tect the creditors of companies, and that it imposes on all
shareholders a liability over and above any balance remaining
due upon their shares to the full extent of the par value of
their shares. It operates as a double liability."
Mr. Justice Gait sums up his decision in six statements,
the most important of which are, briefly: (1) That the O. W.
Kerr Co. was duly incorporated in Minnesota. (2) That Sir
William Wliyte bought 50 preferred shares of the company and
received dividends thereon. (3) That Sir William Whyte was a
British subject and a non-resident of Minnesota, and he pur-
chased the shares in Winnipeg; but, in my opinion, the proper
law of contract in question, in so far as the rights and liabili-
ties of the late Sir William Whyte are concerned, is the law
of Minnesota. (4) Finally, I find that when Sir William
Whyte became a shareholder of the O. W. Kerr Co. in
the "year 1911, he agreed by implication that his rights, liabili-
ties "and status as a shareholder in that company should be
governed by the laws of Minnesota, and that under these laws
the defendant company, as executors of the estate of Sir
William Whvte. are now liable for the relief claimed, to-
gether with interest at six per cent., in accordance with the
law of Minnesota."
Mills vs. Biden
In the next case it was held by the Nova Scotia Supreme
Court that it is the intention of the testator which must be con-
sidered, whatever the wording of the will may be. The case
was that of Mills vs. Biden, and the part of the will in ques-
tion was that making a bequest to his wife, reading as fol-
lows: "All my real and personal estate of which I shall die
seized and possessed, or to which I shall be entitled, and all
debts which may be due to me at the time of my decease, with
full power and authority for her to dispose of the same at her
discretion by absolute deed or deeds of conveyance executed by
her, or by her last will and testament among my children, or
any one of them; and should she die without executing such
deed or deeds or last will and testament, then the same to be
divided among my children surviving, or their legal represen-
tatives if dead, share and share alike."
After the death of W. N. Mills the widow seems to have
thought she was the absolute owner of the real estate and
accordingly made a deed of a portion of it to one William
Hamilton, who by himself or his grantees, conveyed to one
Briden, the defendant. The widow of W. N. Mills died on
March 12th, 1902, without having disposed of the property by
deed or will among the children of the deceased, and the action
was brought to recover possession of the land so sold to Ham-
ilton and subsequently transferred to Biden.
Intention Was Children Should Benefit
The main contention was as to whether the will of W. N.
Mills on the true construction to be put on it gave his widow
absolute ownership or only possession for the duration of her
own life in the real estate. If she took it in absolute owner-
ship, then it is admitted that her deed to Hamilton and the
subsequent deeds vested a good title in Biden. On the other
hand, if the will only gave the widow a life estate in the real
estate of the deceased, it would seem to follow that she could
convey a life estate only.
Chief Justice Harris decides the question in the following
words: "His intention that his children should benefit is per-
fectly obvious, as is also his intention that they should at least
take on the death of his wife. They are to take before her
death if she, in her discretion, should so decide, and should
convey it to them otherwise on her death, either by her will in
their favor or otherwise under the testator's will equally. I
do not see how a plainer intention to benefit the childi'en could
have been manifested."
Security Trust vs. Wishart
The third case is that of Security Trust Company vs.
Wishart, in which the Supreme Court of Alberta held that
executors are personally liable on their contracts so long as they
have no relation to some obligation of the testator. The facts
were that the company obtained $15,000 for services rendered
Mrs. Wishart and William Breckenridge, two of the executors
of the will of the late John Breckenridge. The two executors
had made an agreement with the trust company whereby the
company was to act as their attorney and agent whenever
they might be absent from the jurisdiction. The agreement
then witnessed that the trust conipany was to receive $250 per
month for its services, and that some question might arise
later as to what extent such compensation might be chargeable
against the estate. A later clause then set forth that in the
event of Mrs. Wishart not receiving $300,000 and her daugh-
ter $75,000, or any legacies being diminished by reason of pay-
ments to the trust company, Mrs. Wishart was to be "person-
ally liable for such proportion or amount of the said trust com-
January 7, 1921
THE MONETARY TIMES
THE IMPERIAL CANADIAN
TRUST COMPANY
HEAD OFFICE, WINNIPEG, CANADA
Incorporated by Special Act of the Legislature of Manitoba.
Licensed under tlie Laws of the Provinces of Saskatchewan, Alberta and British Columbia.
AUTHORIZED CAPITAL
SUBSCRIBED CAPITAL
PAID UP CAPITAL AND RESERVE
TOTAL ASSETS
$3,000,000
1,171,700
1,172,348
7,266,797
DIRECTORS
Major D. E. vSprague. O.B.E., J. H. G. Russell, Esq., W. T. Alexander, Esq., Dr. A. D. Carscallen,
W.J Boyd, Esq., E. L. Taylor, Esq., K.C., F. H. Alexander, Esq., Col. The Hon.
A, C. Rutherford, James Short, Esq., K.C., S. D. Lazier, Esq ,
R. T. Elliott, Esq.. K.C., Thos. S. McPherson, Esq.
C.eneral Manager: \V. T. ALEXAN'DER. Esq. Asst. General Manager. M.AJOR F R GEORGE
Authorized to act as
EXECUTOR, TRl STEi:, ADMINISTRATOR, GIARDIAN, RECEI\'ER, ASSIGNEE
GENERAL FINANCIAL AGENTS
Branches at VANCOUVER. VICTORIA. CALGARY. EDMONTON, REGINA. SASKATOON
Canadian Guaranty
Trust Company
HEAD OFFICE
BRANDON, MAN.
Acts as Executor, Administrator, Trustee.
Guardian, Committee, Assignee, Receiver,
etc.
Moneys Invested for clients in First Mort-
gages on improved farms only to yield
6 ; to 7 :.
5' '., allowed on sums of $500.00 or upwards
in moneys left for tliree years or longer under
our Guaranteed Trust Investment Receipts.
Our Agency Department is fully organized
for tlie management of properties, collection
of rents, accounts, etc., and the buying and
selling of Real Estate.
Of ficial Administrator ior the Northern and
Dauphin Judicial Districts in the Province
of Manitoba.
Branch Office:
Swift Current, Sask.
Saskatchewan General
Trusts Corporation
Limited
.AUTHORIZED TO ACT AS
Executor, Administrator,
Trustee under Bankruptcy Act
Acts as Agent for making Investments
in First Mortgages and other First Class
Securities
BOARD OF DIRECTORS:
W. T. .MoLLARD, President G. H. Barr. K C. Vice-President
J. A. McBride C H. Willoughby W. H. Duncan
J. A. M. Patrick, K.C. David Low, M.I). \Vm. Wilson
A. L. Gordon. K.C. Herbert E Sumnson, K.C.
General Manager E. E. Murphy
HEAD OFFICE
1811 CORNWALL STREET
REGINA, SASK.
(Official adniinstrator for the judicial district
of Wevburn, Sask )
THE MONETARY TIMES
Volume 66
pany's remuneration as may be disallowed by the court on
the passing of the accounts of the said estate," provided that
if William Breckcnridge received more than $5,000, "he shall
to the extent of such excess contribute in equal shares with
the said Irene Breckcnridge (Mrs. Wishart) to such remuner-
ation of the said trust company as may, on the passing of the
executors' accounts, be disallowed by the courts."
This agreement was signed by the above two executors,
but not by the third. The will of John Breckcnridge provided
that William Brcckenridge and Mrs. Wishart would be amply
compensated for their services by the legacies they would
receive, and that the third executor who was to look after
much of the detail was to receive $250 per month, which he has
received. At first it was thought that there would be a sur-
plus, but it later developed that there was hardly sufficient to
pay the debts in full.
His Lordship's decision is, briefly:
"The parties all thought the estate was not only solvent
but very rich. Hence the idea of much personal liability was
not very prominently in their minds. Mr. Wishart agreed
that what she had indemnified William Breckenridge against
would come out of her share of the estate. They were really
all thinking that everything would come eventually out of the
estate or someone's very large legacy from it.
"I therefore think that we ought not to discover any im-
plied undertaking of the plaintiff to look to the estate and the
estate alone for the major portion of its remuneration.
"My point is that there never was any possibility of the
plaintiff company being able to sue' the estate in an action for
their services. Even if the reference to 'personal' liability
which is found in the agreement had never been there at all,
and even if Roach had signed, and although they were all de-
scribed as executors, the plaintiff company could have sued
executors personally, and them alone, for their agreed remu-
neration.
"There is nothing in the agreement specifically relieving
the two signing executors from their ordinary personal liabil-
ity, covering the whole amount agreed to be paid — the uncer-
tain amount left after a fixed remuneration had been decided
on for the two executors as well as the amount which might
be allowed to them — i. e., the executors, as such remunera-
tion. And I think, therefore, the ordinary rule of full per-
sonal liability should apply.
"The appeal should be allowed with costs and judgment
entered for the plaintiffs against the defendants Wishart and
Breckenridge for $15,000."
New Brunswick Succession Duty
In the fourth and last case to be considered the question
came up as to the application of the New Brunswick Succes-
sion Duty Act to certain charitable bequests made in a certain
will.
The case arose out of an action commenced by the provin-
cial secretary of New Brunswick' against C. W. Robinson and
A. E. Bartlett as executors and trustees of the last will and
testament of one A. R. McClelan. The aggregate value of the
estate of A. R. McClelan is $205,602, of which $152,999 was a
charitable bequest to be administered by the above named trus-
tees, Robinson and Bartlett. The residuary clause of the will
which directed the application of this charitable bequest is: "I
give and bequeath all the residuary estate to my executors and
trustees in trust to manage, to call in, collect and convert the
same into money and deposit the same at interest in a char-
tered bank or banks and use and employ the money so depos-
ited from time to time and all interest therefrom arising for
the benefit, advantage, assistance or the founding of such
charitable, religious, educational or sanitary institutions as my
said executors and trustees may from time to time see fit and
deem desirable."
The questions upon which the court was asked to give an
opinion were: (a) Is the plaintiff entitled to succession duty
under The Succession Duty Act, 1915, in respect of all moneys
passing to the said Clifford W. Robinson and Abner E. Bart-
lett, as trustees under the residuary clause in the will of the
said Abner R. McClelan, deceased? (b) At what rate is suc-
cession duty to be computed? (c) Is the plaintiff entitled to
interest on such succession duty as claimed ?
The judge in his answer to the questions stated that as
regards the first question the answer depended on the con-
struction and meaning to be placed on section 6, sub-section
2, of chapter 27, of the Succession Duty Act, which reads as
follows: "No duty shall be computed in reference to (2) any
pi'operty given, devised or bequeathed for religious, charitable
or educational purposes to be carried out in New Brunswick,
nor the amount of any unpaid subscription for any like pur-
pose, made by any person mentioned in this sub-section for
which his estate is liable."
Need Not Be in New Brunswick
In answer to the first question His Lordship said: "I base
my judgment upon the fact that upon a true construction of
the will there is no obligation on the part of the trustees to
carry out the intention of the testator in this province, and
that the bequest is not a bequest to be carried out in New
Brunswick. To bring the case within the statute the legacy
must be given to be carried out in New Brunswick, and there
must be a clear intention manifest upon the face of the will
that the purpose is to be effectuated here. In the language
of Palles, C. B., mutatis mutandis it is not sufficient that an
application of money in New Brunswick would satisfy the be-
quest. In my opinion, therefore, the answer to the first ques-
tion must be yes, or in other words that the plaintiff is en-
titled to succession duty under the Succession Duty Act, 1915,
in respect of all money passing to the said C. W. Robinson
and A. E. Bartlett as trustees under the residuary clause in
the will of the said A. R. McClelan, deceased."
In regard to the second question His Lordship said:
"It is quite clear that if the bequest were made for the
benefit of a charitable institution outside the province the
assessment on the amount would be as follows: A rate of 10
per cent, would be computed owing to the institution being a
stranger in blood to the testator, and this would be doubled
because such beneficiary was outside the province. My judg-
ment is that it is liable to a duty of 10 per cent, because it
goes to institutions that must be regarded as in the same posi-
tion as strangers in blood to the testator, and because it is not
directed that it shall be disposed of for purposes to be carried
out in New Brunswick."
In answer to the third question it was decided that in
accordance with section 18 of the Succession Duty Act, interest
at the rate of five per cent, could be collected from the time of
the testator's death.
REAL ESTATE AS SECURITY FOR DEBT
Under the Bank Act, Canadian banks must not lend on
real estate, but may accept mortgages as additional security
for a debt already incurred. In case of foreclosure they are
allowed to bid in the property, but cannot hold it over a cer-
tain length of time, so that naturally they get rid of it as
soon as possible, and in doing so accept mortgages. The ex-
tent of the banks' business along this line is shown in two
accounts in the bank statement, as given below, and it will
be seen from the figures that it is not large: —
Real estate Mortgages
other than under real
1919 — bank premises estate sold
October $5,463,675 $2,404,772
November 5,586,078 2,405,619
December 5,596,930 2,505,401
1920 —
January $5,545,766 $2,608,622
February 5,611,570 2,615,018
March __• 5,482,719 2,585,361
April J 4,876,459 2,671,132
May 4,910,297 2,622,484
June 4,786,140 2,726,360
July 4,625,775 2,655,462
August 4,435,256 2,727,545
September 4,353,651 2,714,752
October 4,142,987 2,825,245
INVESTMENT
Jtiiinary 7, iQ^i
THE MOXF.TARV TIMES
Paqe 81
82
THE MONETARY TIMES
Volume 66
United Financial Corporation
LIMITED
BOARD OF DIRECTORS
Sir Charles Gordon, G.B.E., President.
President Dominion Textile Co., Limited. Vice-President Bank of Montreal.
D. C. Macarow, Vice-President,
General Manager Merchants Bank of Canada.
Chas. F. Batchelder, Vice-President,
Formerly of Guaranty Trust Co. of New York.
Major H. B. MacDougall, Vice-President,
of Messrs. C. Meredith & Co.
W. A. Black,
Director Molsons Bank,
Vice-President Ogilvie Flour Mills Co.. Limited.
A. Breton,
Vice-President Guaranty Trust Co. of New York.
A. J. Brown, K.C.
Vice-President Montreal Trust Co.
Director Royal Bank of Canada.
Geo. Chahoon, Jr.,
President Laurentide Co., Limited.
A. E. Holt,
Director The Royal Trust Company.
C. R. Hosmer,
President Canadian Cottons, Limited
Director Canadian Pacific Railway.
Bank of Montreal, etc
Wm. McMaster,
President Canadian Explosives. Limited.
Director Bank of Montreal, etc.
Charles Meredith,
of Messrs. C. Meredith & Co.
Harold Stanley,
Vice-President Guaranty Trust Co. of New York.
E. W. Stetson,
Vice-President Guaranty Trust Co. of New York.
J. R. Swan,
Vice-President Guaranty Trust Co. of New York.
A. P. B. Williams, Secretary-Treasurer.
We purchase entire issues of Bonds, and deal in
Government, Municipal and Corporation Securities.
Head Office:
112 St, James St., Montreal
Toronto Office :
Ottawa Office:
London Office :
14 King Street East
709-711 Hope Chambers
46 Threadneedle Street, E.G. 2.
January 7, 1921
THE MONETARY TIMES
Recent Conditions Relating to Investments
New Capital Well Distributed in 1920, With Growing Preference for Essential Indus-
tries— Demand for Tax-Exempt Securities Fairly Well Exhausted — The Course of Prices
as AflfectingI Investments — Bankers Recognize Need of Sound yet Adequate Credit
By ADAM SHORTT, Ph.D.
ON the face of it it is merely a truism to say that capital
investments are determined by the general economic
conditions of the country. On second thought, however, it
may not be quite so obvious as to what are exactly these
economic conditions, or what are their respective importance,
range, steadiness, and capacity for reliable estimate. How
far are they purely domestic conditions and how far foreign
or world conditions. Moreover, in what measure are they
purely economic, and in what measure political, social or
psychological? .
Thus, when we attempt to penetrate our subject we find
interesting questions arising on every side. Some of these
are more or less soluble on fairly stable practical principles
derived from experience, while others can only be noted as
to their general nature and relative influence, but cannot be
reduced to any permanent or practicable operation. By way
of analogy, we may say that economic conditions in general
are like those which govern agriculture. One may determine,
more or less definitely, the character of the soil, the most
effective methods of cultivation, the relative values of
fertilizers, implements and seeds, as also the general climatic
conditions; but we cannot be certain for. more than a few
hours in advance as to what the weather will be. Yet every
one kjiows that the weather is a very potent factor in de-
termining the crop returns. The psychological and tempera-
mental features, whether of individuals, of sjiecial economic
groups, or of public opinion in general, constitute the weather
factor in economic conditions. While understandable in their
effects and radical in importance, they can be predicted with
no certainty. On the eternal uncertainty of weather con-
ditions the weather prophet flourishes, while the trained
meteorologist has little counsel. On the psychological
element in economic affairs the confident predictions of the
speculator and the plausible promoter rely, where trained
economists will not hazard a definite opinion. But sometimes
the weather prophet and the speculator are right, hence their
influence.
Psychological Factor is Prominent
Owing to the uncertainty of the present outlook, the
psychological factor promises to be d very influential force
in determining the course of the stock markets and the direc-
tions of investments. Immediate impressions are likely to
be projected into an indefinite future and to encourage the
conviction that conditions can never return to what were
considered normal before the war. At one time optimism will
govern and determine action, at another pessimism will rule
the day, spreading with subtle and almost irresistible in-
fluence through the minds of those not well fortified by a
long range of experience.
During the greater part of the past year the directions
of capital investments have been fairly steady. There ap-
pears to have been a prevailing assumption that the diffi-
culties anticipated at the close of the war not having ma-
terialized, it was rather late to expect them. The heavy
trend on the part of persons with comparatively large in-
comes towards the purchase of long-term tax-exempt Do-
minion securities, which was so pronounced a factor in 1919,
and which carried those issues to a substantial premium, had
nearly exhausted itself towards the close of the year, when
the last Victory Loan was successfully floated. Thereafter
the flow of capital investment, during the greater part of
1920, was fairly evenly distributed between the various fields
of public securities. Dominion, provincial and municipal, and
private and corporate enterprises; the pulp and paper shares
being naturally popular in virtue of their present prosperity
and attractive future prospects.
All this furnishes a curious parallel to the economic
situation which followed the last great world struggle, prac-
tically brought to a close in 1814. In that case, for the first
two years after the close of hostilities business remained
brisk, the populace spent lavishly, economy was disregarded,
and the conviction became general that no serious re-
action was thereafter likely to occur. It was felt that dur-
ing the long war. nothwithstanding its inflated credits and
currency, and suspended specie payment, a new an3 per-
manent level of values had been established, which were not
likely to be disturbed for an indefinite period. In the early
part of the third year, however, as in the present case,
stagnation began to develop, raw materials to accumulate,
and prices to break. Industries slackened their pace and
many ultimately closed, unemployment spread and a long
and severe depression followed. In the course of this re-
action, deflation was thoroughly accomplished, exchanges
were readjusted, specie payment was resumed, wages and
the cost of living fell concurrently, rendering production on
a large scale both possible and profitable, and at prices suit-
able to the domestic consumer and the foreign markets. Pros-
perity on a sound basis rose to volumes undreamed of be-
fore the war, with increasing funds for investment drawn
from a much broader section of the general public. These
conditions, unfortunately, tempted reckless speculation,
promising fabulous returns and letting loose in the economic
world the psychological forces already referred to, the whole
leading once more to reaction and crisis.
How Far Will Parallel Go?
It does not of necessity follow that the general parallel
with conditions after the close of the Napoleonic wars which
has so far existed, must continue during the third and fol-
lowing years of the modern cycle. Yet there are many in-
dications that healthy trade conditions on a sound financial
basis should be reached as rapidly and effectively as possible
over a wide area. This will permit of commercial and ex-
change relations being re-established, with the resumption
of specie payment, and the affording of safe and attractive
investment for capital. It would also promise employment
for labor at reasonable rates of remuneration measured, not
by inflated credits, but by a standard of living bearing some
fair equivalent to the output of the worker in his own con-
tribution of products or services.
There is, of course, much to be said for a gradual process
of deflation if it could be effectively and justly carried out.
But this is quite impossible. Certain lines of industry, such
as building trades, do not lend themselves to this process. On
the other hand, owing to the rapid accumulation of raw ma-
terials in the textile, leather, sugar and other trades, where
production can take place with fair rapidity, the finished
goods are certain to fall in price long before rents from
housing, fuel, and transportation would adjust themselves,
especially if encouraged to maintain a high level as long as
possible. Large sections of the community, however, are
liable to suffer a severe shrinkage of income before there is
a corresponding fall in the cost of living in other lines. A
more rapid adjustment all round would be more equitable
in the end, and the sooner establish a sound and reliable basis
for capital investment.
In the face of present conditions capital is naturally shy
of ready investment in even standard lines of production,
while prices are in a more or less crumbling condition, not-
withstanding elaborate attempts to sustain them at levels
above their normal gravity adjustments. It is quite true that
in well-established industries with their fixed capital in good
working condition and with sufficient supplies of raw ma-
THE MONETARY TIMES
terial at suitabli- rates, they are able to make a rapid turn-
over of their capital ami thus secure reasonable profits, even
on a gradually falling market. Such industries, however,
can fairly well take care of themselves even on a rapidly
falling market, and they are the sooner in a position of
stability to meet future developments.
Must Be Shrinkage of Values
There is nothing to be gained and much to be lost in
attempting to ignore the fundamental fact that in the process
of deflation or readjustment of values, a certain shrinkage of
fortunes must result, just as a corresponding expansion was
temporarily secured through the highly artificial process of
inflation incidental to the great war. But when we come to
consider the great benefits which result for a country when
its business is restored to former conditions, the temporary
sacrifices necessarily involved in reaching this basis may be
philosophically faced if not altogether relished. When the
alternative is considered the outlook for new investment is
certainly not hopeful. A country such as Canada cannot ex-
pect to confine its business within its own borders. If, there-
fore, the attempt is made to maintain prices upon a per-
manently higher level than in competitive countries, or to
have the decline in prices lag behind the fall in adjoining
countries, two complimentary results must inevitably follow.
In the attempt to sell our own goods abroad we are steadily
handicapped by high cost of production. Our trade is in-
evitably retarded and many industries must either undergo
heavy sacrifices or curtail — possibly suspend — their business
indefinitely, foregoing profits and throwing labor out of em-
ployment. Again, with high prices maintained in our do-
mestic markets, Canada becomes an exceptionally attractive
country into which to import foreign goods, despite our tariff
rates. The slow readjustment, therefore ,is a stagnating and
unprofitable line of policy to follow.
Exchange Rate Now a Real Factor
It is to be observed that the barrier of a high exchange
rate does not materially affect purchases under the com-
pulsion of necessity to buy in any market available regard-
less of costs during war conditions; as also during post-war
condition depending on the reckless extravagance of those who,
in proportion to their previous incomes, have shared greatly
in war profits. When, however, war conditions have passed
and the accumulations of the spendthrift classes are trans-
ferred to more thrifty hands, those countries enjoying a high
favorable exchange rate, notably the United States and even
Canada itself, with reference to the European countries, will find
themselves in a very difficult position as regards the sale of
their goods. So long as the foreign purchaser has to pay the ex-
change rate with the United States and Canada, there will
be no great loss to American or Canadian exporters, but
when supplies are available from other countries on the basis
of the sale of bills on London, then Canadian and American
exports to Britain, not to mention other European countries,
must conform to similar conditions.
Then the return on the goods is not the nominal value
in the foreign country, but simply the domestic rate at which
the exchange drawn against the foreign country will sell in
one's own country. Thus the sale of a cargo of wheat to
Britain at so many pounds in the British market nets the
American exporter, and through him the farmer, just so
many times, say, $3,40, the price of the English pound in the
New York market, for the time being. A similar cargo
would net the Canadian exporter just so many times $3.80.
If the Canadian and United States farmers wish to spend the
full returns from their grain in the purchase of British
goods, they would recover in the corresponding low rates at
which they could purchase sterling exchange, what they lost
in the selling of sterling exchange drawn against their ex-
ports; the net result to both would be the same. In other
words, in both Canada and the United States, a given num-
ber of bushels of wheat would purchase just the ,ame
quantity of British goods. If, however, the Canadian and
.American farmers have debts to pay, or wish to purchase
goods in their own countries, and the prices are the same in
each, the American farmer would be worse off than the Can-
adian, while both of them would suffer a severe shrinkage
in their incomes, so long at least as prices in their respective
countries are still approximately at war levels.
United States is at Disadvantage
The more intelligent observers in the United States are
not slow to recognize their disadvantages so long as war
rates prevail. To protect themselves in the world's markets,
the more enlightened Americans perceive the necessity for
reducing prices and costs as rapidly as possible and as nearly
as possible to a pre-war basis at least, in order that the
handicap of a high favorable exchange may not cripple the
foreign trade of the United States in proportion to the re-
covery of the productive power of competitive countries. The
same, of course, applies to Canada only in a slightly less
degree. These are important factors, therefore, affecting
very radically and with increasing power the prospects of
capital investment in Canada.
Essential Industries Have Best Outlook
As regards the relative attractiveness for capital in-
vestment of the fields of the necessaries and luxuries of life,
it may be concluded that, at the present time, the former is
much the more promising. During periods of inflation, how-
ever, as in the later years of the war and the first two years
of peace the contrary would be true. In the first place, in
periods of inflation a relatively prosperous community, such
as that of Canada or the United States, does not purchase
much more of the necessaries of life than in other periods.
It is the demand of non-productive armies and the general
waste of war which renders the necessaries of life scarce and
dear. In times of inflation and consequent extravagance,
however, there is no limit to the markets for luxuries save
only the extreme limit of pui'chasing power. Not the body
but the fancy has to be satisfied. In exceptionally prosper-
ous periods, therefore, it is in the line of luxuries that the
widest margins of profits are realized and the greatest
fortunes are made. There arises, of course, a great and most
virtuous wail over the high cost of the necessaries of life,
while most of the same parties pay without a murmur famine
prices for fleeting and unprofitable luxuries.
When, however, the spending power is curtailed, the
urgency of the necessaries comes to the front, and the dis-
pensable luxuries and the King's revenue therefrom are
among the chief sufferers. During critical periods of trade
and finance, it is obviously safer for investors, who are not
quite on the inside of the market, to place their capital with
those enterprises which are connected with the production
of the necessaries of life, rather than its luxuries Fortu-
nately, the Canadian industrial field hitherto has been chiefly
concerned with the great staples of trade.
Building Costs May Remain High
One of the most difficult aspects of capital investment is
that connected with building and housing. Unfortunately
while the increasing costs and lack of materials, which meant
lack of labor, restricted, during the war period and since, the
construction of houses for the common citizens, enormous
funds with all available labor at high wages were employed,
chiefly by the Dominion, but also by the provincial govern-
ments and municipalities, in the construction of extensive
buildings connected more or less with war work, and many
of which are now of but little service in proportion to their
costs. Private corporations connected directly or indirectly
with war contracts also spent large sums in buildings and
other fixed capital, while those contributing to the amuse-
ment of the masses and the furnishing of other forms of
luxury found it quite profitable to build for these purposes,
in spite of the high costs involved.
The pressing popular need for housing still remains,
therefore, and there ^s less prospect of an immediate decline
in cost in that essential line than in any other. This is
chiefly due to the fact that the cost of building is chiefly de-
January 7, 1921
THE MONETARY TIMES
85
termined by the cost of high-priced labor as distinguished
from the standard raw materials of construction. As a re-
sult, so long as the exceptionally high remuneration of the
building trades and the shortness of their hours remain on
the present basis, the cost of building cannot substantially
decline, even should there occur a considerable reduction in
the more essential building materials.
The chief sufferers from the present unfortunate situa-
tion are the lower or unskilled sections of the laboring
classes, the shop-keeping assistants and the numerous
clerical classes whose incomes are far below those of the
building trades. Many schemes have been propounded for
the relief of the situation, but they are all brought to a stand
by the excessive cost of building. Naturally, therefore, at
the present time, very few persons will invest capital with
any expectation of profit in the construction of dwelling
houses for rent, or even in the construction of closet apart-
ments on the cheapest lines that will pass inspection. Apart
from victimising the insurance companies, there is no pos-
sibility of a rapid turnover in the investment of capital in
housing accommodation. Aside from governments, therefore,
or those institutions who build without hope of permanent
pecuniary reward, there is likely to be little capital invested
in buildings until a paralysis of building leads to a reduction
of costs.
Needy Cannot Pay Prices
This is the only important field in Canada which illus-
trates the situation which prevails in so many lines in
Europe. Briefly the situation is one in which there is wide-
spread and urgent need, but very little economic demand.
In other words, the needy have no adequate means of pay-
ment for the supplies they require. In the case of many
millions of people in Europe, there is a most urgent need for
supplies of practically all the necessaries of life, but as these
people have little of commercial value to offer in exchange,
their need does not furnish an economic market; it promises
no remuneration for capital devoted to the supply of their
wants. This condition has occurred after every great war,
but it was sadly overlooked by the thoughtless commercial
optimists rejoicing over the prospects of a large and highly
profitable market for the supply of Canadian and American
products in the areas devastated by the war.
The dire need of Europe extends far beyond the regions
which these persons had in mind. America could dispose of
all her surplus food and keep most of her industries busy
without adequately meeting these urgent needs, but for the
vast majority of our products we should have to take the
European I.O.U.'s for an indefinite period. In other words,
their chief available export is the product of their promissory
printing presses, one war industry which is still in active
operation among them.
In point of fact what is required to meet the most urgent
need of Europe is charity, not trade, much less profiteering.
In view of prospective production it cannot be too clearly
realized that the economic markets of the world are far more
limited since the war than they were before it. In the re-
covery process, supply bids fair to exceed, for some time, de-
mand backed by the means of payment. Both the capital and
labor which hope to successfully compete for the supply of
such limited markets, must revise as speedily as possible the
cost of production. Apart from the economy of mechanical
devices and industrial organization, this means the reduc-
tion of the cost of living, and, under present conditions, this
means the reduction of profits and wages, into which ulti-
mately all costs resolve themselves. With the enormous
supplies of our native raw materials and the steadily falling
urioe'^ of the chief foreign raw materials, except fuel, it
should be possible for Canada to adjust itself to the new
world conditions to as great an advantage as any other
country, not excepting the United States.
One primary requisite of a sound economic condition and,
therefore, of the safety of the field for capital investment,
is the maintenance of the trade and particularly the com-
merce of the country upon a fluid basis of exchange, that is.
a fluid money market. Now an inflated credit market is no
proof of a fluid money market; nor do the highly expanded
banking returns give any assurance of a fluid money market.
On the other hand, it is quite evident that the leading Can-
adian bankers are very much alive to the real needs of the
situation, and take a very intelligent view of their functions.
Their energies ai'e being directed alike in expanding accom-
modations in certain directions, while curtailing credits in
others, to bring as large a volume of the trading capital of
the country into the most flexible and serviceable form pos-
sible. This is essential to prevent the tying up of large funds
in stocks of goods or forms of investment which cannot be
realized upon within comparatively brief periods. It is highly
necessary to devote commercial capital to productive indus-
tries with a rapid turnover, thus permitting of the maximum
employment for labor in the supply of essential goods and
services.
In any case it is specially desirable that the irresponsible
speculator should be kept out of the capital market until con-
ditions are once more fairly normal, when his operations will
alfect mainly h.mself. In critical periods, when even the
most experienced captains of industry and pilots of finance
are more or less nervous and worried as to the extent and
duration of this, that, or the other squall, current, or tide,
the speculator obscures all issues, displays false signals, and
in raising false hopes induces in the end more widespread
disaster or even despair. -All past history of the re-
adjustments after important wars establish the certainty of
the process of deflation with an inevitable shrinkage in
values. But when the situation is intelligently realized and
calmly dealt with, panic can be avoided and the disasters
which are almost entirely due to it successfully evaded.
EXPANSION OF AUTOMOBILE INDUSTRY
When the war broke out the number of automobiles in
use in Canada was 67,415, but now the number is 400,000, and
the value of those registered is $600,000,000. Although the
price of cars and of gasoline has increased during the current
year, their use for pleasure as well as for business purposes
has steadily increased. For the manufacture of automobiles
and the assembling of parts $54,000,000 is invested in Cana-
dian plants, which employ 15,000 hands, receiving annual
wages of $15,000,000. Sales of cars exceed $100,000,000 an-
nually.
A large portion of the material used in the production of
a Canadian car is imported. For parts alone the annual bill
is $12,000,000, while the requirements of automobile manufac-
ture entail an increased importation of glass, rubber, iron and
steel. The growing use of automobile vehicles accounts in
great measui-e also for the steady increase in imports of petro-
leum products. For the twelve months ended June 30th last
514,897,000 gallons of oil were imported, as compared with
4.3.3,018,000 gallons for the preceding twelve months. The
cost of this year's imports of oil in its finished and crude
forms is estiinated at $35,000,000.
The Canadian Bank of Commerce, in its monthly commer-
cial letter for September, points out that this, however, does
not represent the whole cost of maintaining cars. During the
current year a large amount of capital has been invested in
garages, public and private. The former are now as numer-
ous as were once village blacksmith shops, which they have in
many cases absorbed, and serve to a very large extent the
users of pleasure cars. They also give employment to a large
number of highly-paid workmen. While expenditures on
these accounts may to some extent facilitate production and
trade, the physical volume of the former has not materially
changed. Continued expenditure of labor and capital on so
large a scale without tangible results in exportable products
will not aid in bringing about more satisfactory condition?.
Declines in prices of essential food, clothing and house-build-
ing materials cannot be looked for so long as a di.sproportion-
ate amount of capital and labor is expended on sustaining
activities that do not produce the necessities of life.
IKE MONETARY TIMES
Volume 66
CANADIAN BOND SALES $320,000,000
More Than Two-Thirds of This Total Was Placed in the
United States — Large Amount of Provincial and Kailroad
Financin;; — Many Municipalities Make Domestic Loans
CANADIAN bond sales in 1920 reached the substantial total
of $324,914,667, according to figures compiled by The Monc-
laiy Times. A summary on another page of this issue shows
that this total is made up as follows: Government (all pro-
vincial), $125,993,000; municipal, $56,371,391; railroad, $96,-
600,000; corporation, $46,050,276. In the absorption of this
large amount, however, Canada participated only to a small
extent, more than two-thirds, or $223,084,000, going to
United States investors.
The amount of Government bonds sold, when compared
with the five years previous, seems small, but then there
was no war financing by the Dominion Government. Sales
of municipal securities exceeded those of the previous year
by about $28,000,000. The bulk of these bonds were placed
iii Canada, although slightly more than $10,000,000 found
their way across the line. The record of municipal sales
since 1911 shows the following results: 1911, $30,295,838;
1912, $19,767,365; 1913, $20,550,239; 1914, $34,483,360; 1915,
$31,910,214; 1916, $19,640,778; 1917, $17,955,714; 1918, $41,-
860,361; 1919, $26,274,089; 1920, $54,271,391.
Railroad and other corporation securities' increased
greatly over the previous year. All of the railroad bonds
were sold in the United States, while the greater part of
the corporation bonds was disposed of across the line.
A feature of the bond sales in 1920 was the large num-
ber of municipalities which successfully arranged their own
financing. Two Provinces, Alberta and Saskatchewan, are
also included in the list of domestic loans.
A conservative estimate of local loans during the year,
including those made by a large number of western school
districts and rural municipalities, which have not been heard
from, would be about $7,000,000. This amount seems small
as compared with the total of all bond sales, but it is the
largest on record.
In addition to the 6 per cent. 10-year bonds, the Province
of Alberta also disposed of a considerable amount of savings
certificates. The exact amount sold during the year has not
yet been ascertained, but up to the end of November the
total was $1,074,274, as compared with $681,029 for the whole
of 1919.
Ont.
Issue
Woodstock, Out.
Kitchener, Out.
Lanark Count.v
Oweu Sound, Out
Exeter, Out.
-Hanover, Ont.
Cote Ste. Mlcln-1, ijn
Xorth Battleford, .s.is
Regina. Sask
Whitewood, Sask
Grand Prairie, Alta.
Traii, B.C _
Godericli, Ont
County of Ontario - .-
Guelpli, Ont
Milton. Ont
Brantford, Ont
Cobourg. Ont. ._..
65,000
100,000
100,000
SS.OOO
50.1100
45,000
Inter-
Price at est
Maturity whicli sold cost
15 years
20 instal.
15 years
400,000
s. notes) 30,000
61,000
._ 3,000
13,000
9,000
10,000
50,000
_ 16.225
S2,000
_ 600,000
50,000
Hamilton. Ont _ 475,000
15 years
10 years
20 years
Chatham, Ont 100,000
Halifax, N.S 500,000
HaUfax, N.S 300,000
Halifax, N.S 43.000
Stamford Township, Ont 22,000
Province of Alberta _ _ 500,000
Province of Saskatchewan 1,600.000
Province of Saskatchewan 380.000
Moncton, N.B 300,000
London, Ont 265,000
Moose .Taw. Sask 22,000
Moose .Taw, Sask. (schools) 64.000
Halifax, N.S 550,000
6 20 years
6 30 instal.
6 20-yr. ser.
6 20 instal.
Vo-e 20 instal.
6 15 years
6 10 years
33 years
10 years
10 years
10 years
7 years
30 years
10 years
100.00
100.00
6.00
6.50
100.00
7.00
92.00
98.00
100.00
7.28
6.00
100.00
6.00
6.50
100.00
6.00
6.50
6.00
iVz
100.00
98.16
92.85
98.16
98.00
100.00
100.00
ino.oo
6.00
6.25
6.26
6.00
5.00
S.OO
514
15 years
10 instal.
10 years
86.40
100.00
95.365
CORPORATION
JANUARY
Drummond Apartment Biiildinfls
FEBRUARY
ReRina Trading Company
MARCH
Canaiiian Tungsten LampCo.. Ltd.. guaranteed
by Can. Gen. Electric Co
St. John Drydock & Shipbuilding Co . Ltd
APRIL
Ames Holden Felt Company. Limited
McCormicli .Manufacturing Company, Limited
Uniied Grain Growers
Acadia Sugar Refining Co
Granby Consolidated Min. Smelt. & Power Co.
Bell Telephone Co- of Canada
MAY
Ames Holden Rubber Boot Company
.•\bitibi Power & Paper Company
JUNE
Ontario Smelters & Refiners. Limited ...
.Northern Light Railways Company
Howard Smith Paper Mills, Limited
Shawinigan Water & Power Co.. Limited
JULY
Kaministiqua Pulp & Pap. Co. (1st mt. ski. fd.).
AUGUST
Manouan Pulp I'i: Paper Co. (convertible deb.)
Manouan Pulp & PaperCo. (1st nit. skg. fd. bds)
Western Canada Pulp & Paper Co
OCTOBER
Paramount Victoria Theatres. Limited
Benson-Hines London Hotel Company
Ottawa Light, Heat &- Power Company
.Massey-Harris Company. Limited
NOVEMBER
St. Francis Power Company.
Dominion Power & Transmission Co.. Ltd
DECEMBER
Kiordon Company. Limited
Moimt Royal Hotel (convertible deb.)
K. & S. Tire and Kubber Goods Company
Canadian Western Steamships Company
8
650.000
375,000
600.000
750.000
2.000,000
2,500.000
5.500.000
250,000
300,000
450,000
4,000,000
600.000
1.750,080
1.000,000
300,000
600,000
1.200,000
6,500.000
4.000 000
300,000
850,000
20 years
20 years
20 years
serials
15 years
20 years
20 year serial
10 years
15 years
6 years
15 years
25 years
20 year seri:
20 years
1923
15 years
Approx
Int.
Basis
7.00
7.00
6.75
7.00
8.00
Royal Securities Corporatic
Bell St Mitchell
Thornton, Davidson & Company
Nesbitt. Thomson & Company
Sun Life Assurance Company
Graham. Sanson & Company and Syndicate
New York
Royal Securities Corporation and Syndicate
Tanner. Gates & Company
raham. Sanson & Company
ATlus Bond & Security Company
Ulas Bond & Security Company
Graham. Sanson & Company
Burdick Bros.. Ltd. Offered with bonus of 50% com.
Brent, Noxon & Company
Royal Securities Corporation and Harris, Forbes &
Company, Incorporated
VVm. A. Read & Company
al Securities Corporation and Syndicate
N. A. MacDonald & Co.
Richardson. Sheppard & Thorburn
1,750,000
2,500,000
S,.'iOO,000
4,000,000
125,000
1,200,000
4.000,000
600.090
6.500. UOO
Janiiary 7, 1921
THE MONETARY TIMES
87
CANADIAN BOND SALES IN 1920
PROVINCIAL
JANUARY
ish Columbia..
FEBRUARY
New Brunswick
Saskatc;he\<
Ontario ....
Ontario...
MAY
IVlanitoba (Farm Loans)
Manitoba (Rural Credits Treas. Bills).
.Manitoba
Nova Scotia
Nova Scotia
■New Brunswick
Alberta -.
JUNE
British Columbia
Ontario
JULY
British Columbia
British Columbia
Quebec
<Juebec
Ontario (Treas. Notes) .
Ontario
AUGUST
Nova Scotia
Manitoba
.Alberta
British Columbiii
Manitoba
SEPTEMBER
.Alberta University
Saskatchewan..
OCTOBER
British Columbia
NOVEMBER
Ontario
Nova Scotia.
Alberta
Manitoba
DECEMBER
Ontario
Nc
Br
MUNICIPAL
ONTARIO— January
Flamhorn Township. East
Kitchener
Kitchener
Etobicoke Township
Bridgeburg
Toronto (Harbour Commis:
Issues under .?2S,(X)0
February
Midland
Carleton County
Whitby Township. East . . .
Charlottenburg Township
Woodstock
Renfrew County.
Issues under $2.S.0(XI
S
■i.4S0,(X)()
,^0(1.1100
2.498.000
2.850.000
3.500.000
3.500.000
5.000.000
500.000
1. 000.000
2.0(10.000
B.SOO.OOO
500.000
1.000.000 {
2.000.000 I
800,000
2,200.000
2.800.000 j
3.000.000 !
I. .100.000
L.VIfl.Oflfl
2..'!flfl.n00
2 ,sno 000
i; (Kin 0011
.S,(10fl ()0(l
.wio.non
7'J.';.(ioo
2.000.000
3.000.000
^..sflo.nno
1.000.000
.sonono
7.w,ooo
3,000,000
3.000.000
5,000 000«
2.000.000
1.000.000
750.000 i 6
2!l,5(i8
4B.,'i()0
.TD.dOO
.sn.ooo
.so.ooo
J.ooo.ono
61.934
30.000
40.0(10
m.ax)
lOO.OflO
I.SO.OdO
W.Xtl
;.T2-.'.;t,i4
25 years
10 years
5 years
5 years
5 years
3 years
4 years
15 years
5 years
3 years
4 months
S years
5 years
■ 5 years
10 years
3 years
.■» years
5 years
to years
5 years
6 months
10 years
6 months
10 years
5 years
5 years
5 years
3 years
5 years
6 months
3 years
7 years
10 years
10 years
10 years
6.52
I 6.52
5.83 i
20 instalments
30 instalments
20 instalments
20 instalments
30 instalments
34 years
Various
20 instalments
30 instalments
20 years
30 instalments
20 instalments
6.12
6.05
6.00
5.96
6.28
6.20
Purchaser
Price
Paid
Sold in
U.S.
Dominion Securities Corporation.
S
Wood, Gundy & Company and A. E. Ames & Company
A. Jarvis \ Company
A. Jarvis & Company. Canada Bond Corporation.
Wood, Gundy & Company and R. C. .Matthews & Co.
J. M- Robinson & Son and the Eastern Securities
Company. Limited
9,S.15
J. P. Morgan & Company. National City Company
and Harris Forbes & Company
J. P. Morgan & Company and Syndicate
Harris. Forbes & Company and National City Company
•93.87
3.500,000
Dominion Securities Corp. and Wood. Gundy & Co.
•92. S5
3,500,000
A. Jarvis & Company and Syndicate
100.65
5,000,000
A. E. Ames & Company
99.314
500,000
A. E. Ames & Co. and Dommion Securities Corp.
102.20
1,000.000
United Financial Corporation. Limited
Wood, Gundy & Company and Syndicate
•91.633
6,800,000
Wood. Gundy & Company
100.00
500,000
1,000,000
2,000,000
Wood, Gundy & Company and Syndicate
*89.66
R. A. Daly & Company and Syndicate
•91.21
800,000
R. A. Daly « Company and Syndicate
101.19
2,200.000
A. E. Ames & Company and Syndicate
A. E. Ames& Company and Syndicate
97 715
101.57
3,000.000
'Wood. Gundy & Company and Syndicate
•88.14
2,000,000
British-America Bond Corporation and Syndicate
100.00
1,300,000
British-America Bond Corporation and Syndicate
99.88
I 500,000
Bank of Montreal and others
A. Jarvis & Company and Home Bank
99.50
3,000.000
A. E. Ames & Company and Syndicate
98.317
5,000,000
National City Company. Limited
101.287
500.000
United Financial Corporation. Limited
96.58
1.800.000
Seattle National Bank and Syndicate
98.91
3.000,000
A. Jarvis & Company and First National Company
•89.66
4,500,000
Wells-Dickey Company
99.25
750.000
Wood.Oundy & Company
Carstcns & Earles. Royal Financial Corporation.
103.351
1,000,000
British American Bond Corporation and
Gillespie. Hart * Todd
Carstens & Earles, and Syndicate
100.73
1,000,000
Wood. Gundy & Company
100.00
Minnesota Trust & Loan Co.. and Wells-Dickey Co.
A.Jarvis&Co..andthc Home Bank of Canada, private
3.000.000
A. Jarvis & Company. Halsoy, Stuart & Company.
103.567
3,000,000
and the First National Company
Wood. Gundy & Company. A. E. Ames & Company.
I04..S33
5.000.000
R. C. Matthews & Company and Illirois
Trust & Savings Company
Dominion Securities Corporation and Wm. A.
102.02
Read & Company
Harris, Forbes * Company and the National
City Company
Wells-Dickey Company and the Minnesota
Loan 8c Trust Company
Dominion Securities Corporation & Syndicate
89,243,000
.Morgan-Dean Harris & Company
C. H. Burgess & Company
C. H. Burgess & Company
W. L. .McKinnon & Company
A. E. Ames & Company
Various
C. H. Burgess & Company
97.67
A. E. Ames & Company
Brent, Noxon * Company
Dominion Securities Corporation
Wood. Gundy St Company
Various
THE MONETARY TIMES
Volume 66
BOND SALES (Continued)
lirottfihl Forward
Mimico
Mimico
Renfrew Town..
Niagara Fulls. ..
Ningara Falls...
Sarnia
Sandwich
Hamilton
Windsor
April
Walkerville
Chatham
Chatham
Toronto
Issues under $25,000.
May
Sarnia
Walkerville
York Township
'ille
Brantford
Sandwich
Toronto (Separate School).
Issues under $2.'i.00()
Linci.ln County
Trafalgar Township..
Chatham
Sudhury
Sai
St. Catharines
County of Renfrew.
County of Renfrew.
Kingstiin .
Sault Ste. Marie....
Port Arthur
Carleton County....
Gait
Gait
Fort William
Fort William
Fort William ..
Fort William
Peterborough. . .*.
Issues under ti.S.OflO.
July
Ingersoll
Cobourg
Augu«t
Hawkesbury.
East Sandwich Township.
Toronto Township
■ Tor,
nto .
Ca rieton County
Prescott & Russell
Oshawa
York Township
Stormont. Dundas & Glengarry.
September
Laketield.
Toronto Township
Milton
Charlottenburg Township.
Essex Border Utilities . . . .
es under S'i.S.OOO.
October
Oananoque
Niagara Falls
Haltnn County
Brockville
Belleville
Belleville
Lincoln County
Waterloo
Kitchener
York Township
Issues under S2S,000.
November
Toronto .
Windsor
Sarnia
Niagara Falls. . ..
Renfrew County.
Oshawa
Parry Sound
2,S,743
M.OfiS
40.S4i)
sn.noo
100,000
101.040
144,932
752,34,'i
75,000
90.000
130,000
1 ,90.'i,000
2S.20.S
3,S,000
38,012
40,000
45,000
100.000
144.933
200,000
62,000
25,000
37,349
60,000
80,000
90.000
100,000
100,000
125,000
100,000
150,000
142,000
150,000
173,000
190.000
105,091
93,247
20.000,
80,000
87,000
230.000
500.000
43.074 Va
61.000
75,000
76,320
167,005
78,707
34,881
42.000
74,676
78.,500
1.50,000
•200,000
220.000
278,248
400.000
33,!i00
37.000
45,000
48.000
95,000
117,615
128,000
!.300,0fl0
29,361
33.000
33,000
35.000
37.500
3.000
38,000
50,000
95,000
135.000
215,280
38,300
377..S47
164.981
153,955
150,000
78,743
75,000
AppROX
Int.
Basis
Carried Forward
30 instalments
30 instalments
20 instalments
20 instalments
20 instalments
Various
Various
10&20instal.
Various
20 & 30 years
30 years
10 years
Serial Various
10 instalments
10 instalments
20 instalments
1924-29
15 instalments
20 years
Various
20 instalments
10 instalments
20 years
20 yellrs
30 years
20 years
20 years
20 years
20instalments\
20 instalments/
30 years serial
15 years
20 years
20 & 30 instal.
20 instalments!
Various I
20 years
30 years
30 years
30 years
30 years
Various
10 & 15 instal.
IS & 20 years
15 & 20 instal.
Vai ious
Various
20 instalments
15 instalments
20 instalments
20 instalments
20&40 instal.
30 instalments
20 & 30 instal.
10 & 25 instal.
10 years
30 instalments
20 instalments
20 instalments
30 instalments
20 instalments
28 instalments
20 years
Various
Various
Serial
20 instalments
20 instalments
10 years
20 years ■>
30 years )
lOinst'lments
20 instalments
20 instalments
Instalments
Various
Various
Various
10 & 20 instal.
20 instalments
15 instalments
30 instalments
6.25
6.25
6.40
6.75
6.20
6.25
6.25
6.30
6.70
6.90
6.50
6.70
6.70
6.70
6.77
6.53
6. .53
6.75
0.72
6.60
6.85
Var.
6.60
6.65
6.94
7.70
C. H. Burgess 8t Company
C. H. Burgess & Company
W. L. McKinnon & Company
nited Financial Corporation. Limited
nited Financial Corporation, Limited
Wood, Gundy & Company
National City Company, Limited
s. Forbes & Co. and C H. Burgess & Co.
Wood. Gundy & Company
National City Company, Limited
Brent. Noxon & Company
Locally.
National City Company and Syndicate
Various
W. L. McKinnon & Company
Wood, Gundy & Company
A Jarvis & Company
Bunnell & Company, Brantford. Ont.
W. L. McKinnon & Company
National City Company, Limited
Dyment, Anderson & Company
Various
. L. McKir
A. Ja
A. Ja
& Company
s i*i Company
s& Company
A. E. Ames & Company
Wood. Gundy St Company
Wood, Gundy & Company
Brent. Noxon & Company
A. E Ames & Company
C. H Burgess & Company t
C. H Burgess & Company i
Wood. Gundy & Company
Wood. Gundy & Company
Wood. Gundy & CoMpany
Dominion Securities Corporation
Brent. Noxon & Company \
Brent, Noxon & Company I
Wood, Oundy & Company
Wood, Gundy A Company
Wood, Gundy & Company
Wood, Gundy & Company
A. E, Ames & Company
Various
Wood, Gundy & Company
Wood. Gundy & Company
Brent. Noxon & Company
Wood. Oundy & Company
C. H. Burgess & Company
Wood, Gundy & Company
Harris, Forbes & Company
C. Burgess & Company
R. C. Matthews & Company
R. C. Matthews * Company
lited Financial Corporation, Lim
Wood, Gundy & Company
A E. Ames & Company
A. E. Ames & Company
Wood, Gundy & Company
C. H. Burgess* Co.
Wood, Gundy » Company
A. E. Ames & Company
A. E. Ames & Company
Dominion Securities Corporatic
nited Financial Corporation. Lin
Various
A. E. Ames & Company, private
Wood. Oundy & Company
C. H. Burgess & Company
A. E. Ames & Company
A. Jarvis & Company
United Financial Corporation. L
C. H Burgess & Compan:
A. E. Ames & Company
Dominion Securities Corporation, R. A. Daly S
Company. W. A. Mackenzie & Company,
Harris, Forbes & Company, and the
National City Company, Ltd.
W. A. Mackenzie & Co., and R. A. Daly & Co.
Dominion Securities Corporation
W A. Mackenzie & Company
Wood. Gundy & Company
A, E. Ames & Company
N. A. Macdonald & Company
90.13
89.83
95.71
97.82
93.13
95.56
97.77
97.09
%.18
96.53
93.11
97.00
93.50
89.90
96.587
94.33
94.87
92.666
87.51
92.43
95.07
97.79
93.493
97 29
Various
93.91
95.26
96 09
f92.75
193 58
96.50
94.33
95.27
95.78
Var.
90.03
94.87
94.199
84.67
January 7, 1921
THE MONETARY TIMES
BOND SALES (Continued)
February
St. Aiieustine of Montreal.
Shawinigan Falls
Grand-Mere
March
Sorel '. ...
(Juebec
Montreal C.S. Comm
St, Honore
April
Coteau St. Pierre..
tap. de la Madclai
Uuebec
SherbrooUe
June
Three Rivers. ..
July
Drummondville. -
Outremont C. S. B.
St. Chrysostome.. .
Quebec
August
Uutrcmnnt (Protestant Schools)..
Grand 'MiVeCP. S.)
.Matane
September
Llslct
October
Kast Angus
Lachine
I.achine C. S. B ...
Sherbrooke
Thr
November
Montreal (Schools)
NEW BRUNSWICK
St. John
.Moncton
Moncton
October
Campbellton .
Newcastle
December
Chatham
St. John
NOVA SCOTIA— March
Pictou County
Pictou County
Cape Breton County.
April
Truro
Pictou County
Carried Forward
Braunht Fur-ward
November — Continued .
Parry Sound
Ford City
Etobicoke Township
Pembroke
Charlottenburg Township
Issues under #25,000
Hawkesbury
New Toronto .
December
Ford
Oshawa
Oakville
Renfrew Town
YorkTownship
Walkerville
Toronto
Issues under $2.5.000
QUEBEC— January
La Tuque
Verdun
18.745
50.000
25.000
47.000
30,000
fil.OlR
95,000
39.335
5?,B05
43.791
111.000
45.01 fi
129.fill
30H.OOO
I 055 000
25.000
200.000
.50.000
ifi'.ono
si.ono
4ll0.nnii
7..<0fl
279,000
17<.nofl
2110 000
1.50.000
50 000
un.noo
175.000
500.000
211 .501
1 00.000
100.000
100.000
tflflono
203 SOO
90.000
787..500
40,500
59.500
75.000
9»noo 6
l,T»S.flOO I K
2,000.000 5j
70.000 I -6
.•«3.ono
00.000
unn.noii
.577,000
Approx
Int.
Basis
15 instalments
7. 55
20 instalments
30 instalments
6.60
10&30instal.
6.80
30 instalments
7.02
Various
20 mstalments
10 years
15 instalments
7.05
20 & 30 years
6.80
20 instalments
20 & 30 instal.
7.10
10 instalments
7.00
15 instalments
6.93
1922-1930
6.60 &
6.70
Var.
Var.
5 years
20 years
9 years
10 years
10 years
5 years , ----
40.year serial i 6-30
10 years
5 years
10 instalments
10 years
10 years
30-year serial
S years
30 instalments
20 instalments
Serials
10 years
5 years
10 years
10 years
5 years
5 years
10 years
10 years
instalments
20 years
6.25
6.00
6.55
6.70
5.90
6.13
7. IS
6.40
6.60
6.30
6.80
6.40
6.35
6.25
Purchaser
5 years
15 year serial
5 years 6.00
IS year serial '
10 years
N. A. Macdonald & Company
Dominion Securities Corporation
Brent. Noxon & Company
Brent. Noxon & Company
Wood, Gundy St Company
Various
C H. Burgess & Company
C. H. Burgess & Company
Wood, Gundy & Company
Wood, (.iundy & Company
Wood. Gundy & Company
Wood. Gundy & Company
A. E. Ames <.<: Company
A. E. Ames & Company
nion Securities Corporation & Synt
Various
Rene-T. Leclerc
Versailles. Vidricaire & Boulaii
Versailles, Vidricaire & Boulai:
Rene-T. Leclerc
Wood. Gundy & Co. and Dominion Securities Corp.
Versailles. Vidricaire & Boulais
Municipal Debenture Corporation
Hcne-T. Leclerc
Versailles. Vidricaire & Boulais
Versailles, Vidricaire & Boulais
Credit-Canadicn, Inc. and Rene-T. Lecler
Versailles. Vidr
Rene-T. Leclerc
L. G. Beaubien & Company
J, A. Porrier
Municipal Debenture Corporatii
Nesbitt. Thomson & Company
Rene-T. Leclerc
lunicipal Debenture Corporation
Municipal Debenture Corporation
Canadian Bond Corporation, Montreal
Renc-T. Leclerc
Versailles. Vidricaire & Boulais
Rene-T. Leclerc and Syndicate
Beaubien Si Company
Rene-T. Leclerc and Syndicate
Versailles Vidricaire & Boulais
Municipal Debenture Corporation
Municipal Debenture Corporation
:sCo.. Ltd. and J. M. Robinson &Son!
. M. Robinson & Sons
. M. Robinson & Sons
Eastern Securities Company. Limited
Eastern Securities Company. Limited. J. M- Robin-
son & Sons and Mahon Bond Corporation. Limited
Eastern Securities Company. Limited. J. M. Robin-
son & Sons and .Mahon Bond Corporation, Limited
H. M. Bradford
Private Investors
Nova Scotia Trust Company
Eastern Securities Company
90.68
99.082
98.93
96.69
93.42
98.27
91.13
95-303
94.094
96. 3S
100. OO
98.53
93.26
%.50
97.00
100.25
99.00
93!6b
i
96.80
95.00
93.50
91.75
98.00
94.00
95.33
92.04
100.00
92.04
87.07
90
THE MONETARY TIMES
Volume 66
BOND SALES (Continued)
August
Truro
New Glasgow
September
Pictou County
October
Kentville
Bridgewater
December
Windsor
Hroiight Forward
PRINCE EDWARD ISLAND
Charlottetown
MANITOBA— January
Assiniboia R.M
Brandon
February
Portage la Prairie
Greater Winnipeg W. D..
March
Conor S. D
St. Anne R.M
Dauphin R.M
Greater Winnipeg W. D. .
Greater Winnipeg W. D. .
April.
East Kildonan
Assiniboia
iniboi:
mipeg
nder .S25.000
June
Pipestone R..\l
Fort Garry R. M
Macdonald R. M
East Kildonan R.M
Brandon S.D
Pipestone R.M
July
Swan River R..M
Selkirk- Town
East Kildonan
.4ssiniboia R.M
Winnipeg
August
Fort Garry R.M
October
.Manitoba Schools.. .
Woodworth
G. Winnipeg W. D
November
Minitonas
Issues under under J25.000.
December
SASKATCHEWAN— January
Schools
February
Issues under .825,000.
Schools
April
Issues under
Schools
May
Schools
June
Saskatoon . . .
Schools
Issues under 825.00(1-
July
Regina
Schools
August
Schools
Issues under $25,000.
15.000
438,600
75,000 j 5j
3,950
57,263
35,000
I.OOO.OQO
1,250.000
97.000
129,262
6.192
500,000
17,000
13,000
21,000
40,000
33.000
.iO.OOO
KO.OOO
,58,000
115,000
150 000
312,195
600 000
24.000
145,000
800,000
100.000
23,5.50
32,600
Carried Forward
ah I
Var.
Var, I
20 years
instalments
30 years
20 years
10 years
20 years
20 instalments
10 instalments
20 years
Various
30 instalmen
25 years
20 years
20 years
30 years
20 years
30 years
3 years
30 year seria
10 & 20 instal
20 years
30 years
20 years
20 years
Various
Various
6. OS
6.40
K.14
6.10
H. .M. Bradford
J. C. Mackintosh & Company
Royal Securities Corporation
H. J. Birket & Company
A. E. Ames & Company
Harris, Read & Company
Wood, Gundy & Company
Wood, Gundy & Company
nd Debenture Corporation
i. Mackenzie & Company)
.. Mackenzie & Company I
. E. Ames & Company
Harris. Read & Company
Bond & Debenture Corporatif
Bond & Debenture Corporatic
Bond & Debenture Corporatic
A. E. Ames & Company
Harris, Read & Company
Strang & Snowden
Bond & Debenture Corporation
Strang & Snowden
A. E. Ames lV Company
National City Company. Limited, and Syndicate
J. A- Thompson & Company
Strang * Snowden
A. E. Ames & Company
Various
W. A. Mackenzie & Company
97.25
90. 00
96.50
95.00
94.30
88.27
*87.25
750,000
94.38
•87.25
1,250,000
91.295
Various
89.00
Var.
^
86.00
1
95.1.55
90.093
1,02.09
800,000
2.800 000
Various
Various
Various
January 7, 1921
IHE MONETARY TIMES
91
Our
Investment Service
is at your disposal.
Send us your name
to he added to our
Mailing List.
The National City Company
Bonds and Investment Securities
Canadian Headquarters .
74 Notre Dame Street West, Montreal
10 King Street East
Toronto, Ont.
McCurdy Building
Halifax, N.S.
92
THE MONETARY TIMES
Volume 66
BOND SAUES (Continued)
Approx
FNt.
September
Chester
Schools
October
School Districts
Saskatoon
Issues unilcr $25,000.
November
Schools
Moose Jaw
Chester R.M
December
YorUton
School Districts
ALBERTA— January
Nanton
129,000
48,887
27.287
53.100
100,000
9.500
1.944.562
6,000
February
Spirit River
Edmonton
June
Edmonton
August
Rural School Districts.
September
lonton (. Motes).
124,000
250.000
2.130 000
October
Medicine Hat .
BRITISH COLUMBIA— January
North Vancouver
February
Prince Rupert..
March
South Van
Greater Vane
Victoria
April
Victoria.
May
June
Grand Forks. . .
July
Point Grey.
August
225,000
150.000
227.000
510,000
126.4SS
74.609
75.000
55,000
135.000
September
Prince George
October
Courtenay
December
Victoria
Prince Rupert
RAILROAD
JANUARY
Canadian Northern Railway
MARCH
Canadian Northern Railway
Canadian Pacific Railway
MAY
Canadian Nat. Railways (equip, trust cert).
OCTOBER
Grand Trunk
NOVEMBER
Canadian Northern
12.000.000
12.000.000
15.000.000
25.000.000
25.000.000
96.500.000
Various
10 years
10 instalments
Var. I Various
I
6A 10 instalments
)
6 ; 15 years
5i 10 years
5 years
2 years
2i years
Various
3 years
30 years
2 years
3 years
Various
Various
20 years
20 years
20 years
20 years
Various
3 & 5 years
12 year serial
15 years
20 years
20 years
6.50
6.55
7.01 &
6.96
6.75
7.10
7.00
7.00
International Loan Company
Various
Saskatoon Sinking Fund
Various
Various
Woods. Gundy & Compar.y
International Loan Companj
Strang & Snowden
S. T. Armstrong
W. Ross Alger & Company
W. Ross Wgt-r and Morris Bros.
Morris Bros.. Portland
British-American Bond Corporation
Treasury Certificates
Wood. Gundy & Company
Brent, \oxon & Company
Pemberton & Sons
Pemberton A Soi
ons and Royal Fin
National Bond Corporatit
Pemberton & Son
Spitzer. Rorick & Co.
W. A. Read & Company
W. A. Read & Company
Guaranty Trust Company and Syndicate
W. A. Read & Company
W. A. Read & Company, and Syndicate
Wm. A. Read & Company and Associates
94.00
227.000
510.000
737.000
1,525.000
200,000
124.000
250.000
2.130,000
12,000,000
12,000.000
15,000,000
25,000,000
2,'>.0OO,O0O
%.S00,000
January 7, 1921 THEMONETARY TIMES 93
CANADIAN BOND 4 MORTGAGE COBPORATION
TRUST AND LOAN BUILDING, WINNIPEG, MAN.
Subscribed Capital
$655,800.00
Paid-up Capital and Reserve - 551,758.96
President
J. C. McGAVlN
Vice-President Managing Director
A. R. DAVIDSON W. W. EVANS
Secretary
R. F. McMILLIN
Directors
E. W. KNEELAND W. H. McWILLIAMS G. W. MATHESON J. M. WILEY
FIRST MORTGAGES ON IMPROVED REAL ESTATE.
CANADIAN & GEI
NERAL SECDRITIES, LIMITED
TRUST AND LOAN BUILDING, WINNIPEG, MAN.
Subscribed Capital - - - $450,000
President Vice-President
A. R. DAVIDSON J. C. McGAVIN
Vice-President and General Manager
W. W. EVANS
Directors
R. T. EVANS ANDREW KELLY H. B. LYALL W. L . ROSS
INVESTMENT SECURITIES.
Associated with WM. L. ROSS & CO., Inc., Chicago.
Correspondents Toronto, New York and l^ondon, England.
TRADERS FINANCE CORPORATION, Limited
TRUST AND LOAN BUILDING, WINNIPEG, MAN.
Authorized Capital ... - $3,000,000
President Vice-President
A. B. HUDSON, K.C. J. C. McGAVIN
Managing Director
W. W. EVANS
Directors
E. W. KNEELAND ANDREW KELLY R. T. EVANS A. R. DAVIDSON
SIR DOUGLAS CAMERON
COMMERCIAL PAPER.
94
THE MONETARY TIMES
Volume 66
SUMMARY OF CANADIAN BOND SALES IN ALL MARKETS, 1907-1920
Bonds
Sold in
United
States
Sold
Canada
Sold
in
Canada
Sold in
United
States
Bonds
Sold in
United
States
Sold
Canada
Sold
Canada
Sold in
United
States
January
1919
$
3,315,000
1919
$
2,310,000
1,325,077
4,004,000
1,333,330
1920
$
1920
$
8,950,000
July
Government... .
Municipal
Railroad
Corporation ...
August
Government. . . .
1919
$
75,000,000
225,000
10,000,000
925,000
1919
$
"3,313,32i'
1920 ' 1920
$ i $
5,000,000! 13.H0O.0OO
3,404,077
"650,000
2,718,380
Railroad
8,750,000
2,666,670
7,500,000
Corporation . . .
4,025,000
375,006
125,000
13,925,000
February
Government
14,731,670.
8,972,407
4,054,077
16,450,000
86,1.50,000
7,338,321
8,093,380
1,550,000
1,750,000
900,000
4,1.32,067
500,000
1,443,405
2,498,000
2,275,000
3,500,000
200,000 10.595.000
1,243,871
2,900,430
Railroad
Corporation. . . .
1,000,000
9,300,000
160,000
Corporation . .
September
Government. . . .
750,000
1,000,000
3,250,000: 100,000
4,300,000
14,332,067
2,103,405
4,773,000
4,250,000
2,243,871
6,.350,430 10,695,000
775,000
315,000
2,805,000
1,913,951
14,850,000
1,987,000
24,000.000
500,000
250,000
699,038
3,000,000 750,000
877,676 4 804,000
Municipal
6,659,566
Railroad
Railroad
Corporation
1,655,000
1,115,276
Corporation . . .
October
3,500,000
5,554,000
April
Government. . . .
1,090,000
7,373,951
7,774,842
40,837,000
4,000,000
949,038
3,877,676
3,100,000
435,000
2,900,000
1,115,052
2,000,000
4,962,368
8,300,000
9.250,000
Municipal
194,200
3,517,354
Railroad
25,000,000
5.9011 ono
2,200,000
1,975,000
9,750,000
900,000
November
Government.. . .
Municipal
Railroad
• 3,535,000
6,215,052
8,937,368
18,050,000
194,200
4,417,354 39,450,000
May
Government. . . .
Municipal
5,000,000
.•iO.OOO
500,000
1,18,3,101
2,800,000
915.745
9,500,000
53,250,000
1,677,000
631,032,000
1,134,521
5,386,424
8,750,000
Railroad
15,000,000
1,000,000
25,000,000
600,000
Corporation . .
577,000
2,723,666 4,000,000
Corporation . . .
December
Government
Municipal
Railroad
600,000
2,350,000
200,000
5,627,000
4,406,101 1 7,715,745
25,500,000
55,527,000
634,516,521
5,.586,424i 34,-350,000
Government. . . .
2,510,000
1,626,000
6,800,000
1,500,000
4,677,000
2,929,335
700,000
6,625,000
3,000,000
3,949,411
2,000,000
200,000
6,800,000
3,700,000
1,012,555
20,250,000
9,570,555
Municipal
Railroad
800,000
Corporation . . .
1,000,000
4,000,000
Corporation . . .
200,0OC.
5,156,666 6,5oo,66o
12,436,000
14,931,335
7,949,411
6,200,000
6,800,000
4,912,555
t34970,555 7,300,000
Sold in
Government
1919 1920
Mun
1919
cipal
1920
Railroad
19)9 1920
Corporation
I9I9 1920
Totals
1919 1920
S
649,07'1.0OO
156,300.000
s
36,750,000
89.243.0OU
2U.1%.089
6,078,000
46,305.391
10,066,000
9
4.704.000
25,550,000
5.105,133
*
$
31,411,330
11,518.670
$
18.775,276
27,275.000
705,385,419
199,446,670
5.105,133
101,830,667
223.084,000
96,500,000
United Kingdom
.
805,374.000
125,993.000
26,274,089
56,371.391
35,359,133
96,500,000
42,930,000
46.050.276
909.937,222
324,914.667
Year
Sold in f,"'."^ '"
Canada ^^"''^'^
Kingdom
Sold in
United States
Total
Year
Sold in
Canada
Sold in
United
Kingdom
Sold in
United States
Total
1907
1908
1909
1910
1911
1912
1913
$ $
14,761,683 63,095,057
24,585,140 165,455,031
60,4.33,964 194,356,788
39,296,462 188,070,128
44,989,878 204,269,143
37,735,182 204,236,394
45,603,753 277,470,780
$
4,779,000
6,316,350
10,367,500
3,634,000
17,5.53,967
30,966,406
50,720,762
$
82,635,740
196,3.56,521
265,158,252
231,000,590
266,812,988
272,937,982
373,795,295
1914
♦1915
♦1916
1917
1918
1919
1920
$
32,999,860
114,275,214
102,938,778
546,330,714
727,446,361
705,385,419
101,830.667
$
185,990,6.59
41,175,000
5,000,000
5,000,000
14,600,000
5,105,133
$ $
53,944,548 i 272,935.067
178,606,114 ! 335,106,328
206,943,764 **356,882,542
174,708,.365 : 726,0.39,079
33,310,000 775,356,361
199,446,670 909,937,222
223,084,000 324,914,667
the war commenced to the end of 1916. The
"Included in this sum are 88,000.000 of a total of 850,000.000 Canadian bonds repurchased in United Kingdom
inclusion of the 842,000.000 of unclassified repurchases brings the total of Canadian bond sales in 1916 to $356,000,000.
*ln the above tables it has been estimated that of the first Canadian war loan of $100,000,000 "in November, 1915, 825.000.000 wa:
loan of SIOO.000,000 in September. 1916. 830.000.000 in the United States: third loan of 8150,000,000 in March, 1917, 825,000,000
(allotted) of 8400.000,000 in November, 1917,810.000.000 in the United States, fifth loan 825,000,000 in the United States.
tlncluded in the December figure is the amount of domestic loans made during the year, totalling approximately 87.000,000. As most of these loans were made over
an indefinite oenod, it is not possible to classify by months. 82.100.000 of Saskatchewan rural telephone bonds, the approximate amount sold during the year, is
also shown in the December Municipal total.
Note.— In addition to the above loans, advances for war purposes have been made to Canada by the Imperial Government, and Canada has established credits
here for the British Government. These loans are not included in the above figures.
January 7, 1921 THEMONETARYTIMES 95
llllliillllllillllllillllllllllllllllllilllMIW
w
E have at all times a select list of high-grade Government
and 'Municipal Bonds suitable for the investment of :
PERSONAL FUNDS ESTATES TRUSTEES
MERCHANTS' OR MANUFACTURERS' SURPLUS FUNDS
AMERICAN FUNDS ON DEPOSIT IN CANADA
INSURANCE COMPANIES
We can solve your investment problems. Consult us.
W. A. MACKENZIE & CO.
Government and Municipal Bonds.
42 KING STREET WEST
TORONTO - - CANADA
!;iiiii{|iiiiiiiiiiffliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiH^^^
■iiiiiiwiiniiiiiiiimiiiiiiniiiiiiiiiiiiiiimii^
THE NATIONAL CITY COMPANY of NEW
YORK which established Canadian Offices in
MONTREAL, TORONTO and HALIFAX
early in 1919, have the honour to announce the
formation of the following Canadian Advisory Board.
RT. HON. LORD SHAUGHNESSY, K.C.V.O., Chairman.
SIR JOHN AIRD, EDSON L. PEASE,
MARTIAL CHEVALIER, SIR AUGUSTUS NANTON,
SIR LOMER GOUIN, K.C.M.G. W. N TILLEY, K.C.
LT.-COL. HERBERT MOLSON, C.M.G., M.C.
THE NATIONAL CITY COMPANY
Limited
Canadian Head Office :
74 Notre Dame Street West, Montreal.
10 King Street East,
Toronto, Ont.
McCurdy Building,
Halifax, N.S.
THE MONETARY TIMES
Volume 66
REGINA
The Financial and Commercial Centre of Saskatchewan,
the Grain-Growing Province of the Dominion.
Population 40,000.
The City is growing Solidly and Steadily.
Surplus of Assets over Liabilities, Five and a Half Millions.
ASSESSMENT 1920
Total Assessment $58,406,459
Less Exemptions 15,190,300
Net Assessment $43,216,159
POST OFFICE RETURNS
1916 $ 6,377,986
1917 9,695,520
1818 10.161,003
1919 11,364,420
1920 (10 mos.) 9,894,465
BUILDING PERMITS
1919 $1,699,020
1920 (10 mos.) 2,448,720
BANK CLEARINGS
1916 $124,349,589
1917 169,800,113
1918 184,624,631
1919 210,898,989
1920 (11 mos.) 208,613,656
EARNINGS CITY UTILITIES
1916 $674,595
1917 716,914
1918 781,084
1919 958,494
1920 (10 mos.j 857,618
Manufacturers and Wholesalers
REGINA has a model wholesale and industrial area, planned and developed to give every advantage
to manufacturers and distributors. The district is served bj' spur track system linked with the three
transcontinental railways. It has pavements, water, sewer, electric light and power, and street railway
services, all of which are owned and operated by the City. Some seventy new businesses have located
here since the beginning of the war, and the City still holds nearly Two Million Dollars of Property in
this area which is available for manufacturing or warehouse sites on attractive terms to bona fide firms.
Detailed information concerning the above will be furnished promptly on application.
CITY COMMISSIONER, Regina. Saskatchewan
■■■■■■■■■■■■■■■■■■■■■■■■■■BBBHBBBHHaaBaHHBHHHBaHHHBHaHHaHBHBHBI
January 7, 1921
THE MONETARY TIMES
MONTHEAI. STOCK KXCHAJNOK
Comparative Statement of Prices and Sales, January-March
STOCKS
KEBRUARY
7BJ
64 i
,i "'«''
llAbitibi Com. SO
^1 " ..Pref. 90J
Ames-Holden-McCready i om.
Pref.
Asbestos Corporation Com.
Pref.
Atlantic Sugar Com.
■ Pref.; 70
Bell Telephone i ISO
New Stock
Brazilian T.L. St P.Co
British Columbia Fishing & Packing Cu.
Brompton Com.; 61
Canada Cement Com. 66
Pref( 96i
nada Foundries & Forgings Com. 192
Pref. ...
—nada N.W. Lands Com.!
19 Canada Steamship Lines. Ltd Com. 453
•• Href. 79
Voting Trust
Canadian Pacific Railway 160
^3 Canadian Car and Foundry Com. 3li
Pref 86
^ Can. Consolidated Rubber Co Com
•' .. Pref. 9S
dian Converters 47
dian Cottons, Limited Com. 68
•« •■ , ■• ■• Pref
alBlectric
•*1 Canadian Locomotive - . .Com,
Pref,
Carriage Factories Com.:
Consolidated Min'g & Smelt. Co.. $25 par 27j
3oCrown Reserve Mining Co 55
36 Dominion Bridge i 123
•'7[ Oominion Canners Com. 39
Pref. 76
iCoa! Pref
1 Steel Corporation Com. 62i
1 1 ron and Steel Co Pref. 95
1 Textile Com. 104
Pref. 101*
i Limited Com
Pref.' 45
i Hillcrest Collieries Com.! 36
Pref
vard Smith Paper Mills Com
Pref
lois Traction Pref
Intercolonial Coal Com
• Pref.'
1 Lake of the Woods Milling Co Com. 165
Pref. 106i
•'•.il Laurentidc Co ' 198
■t6 Lyall Construction Co Coni.l
}";Macdonald Co.. A.. Ltd Com.] 23
■^SlMackay Companies Com.: • 75
M ■■ •■ Pref.i 64*
WiMaple Leaf Milling Co Com. 137J
2,787
2,721
1,519
Mi.';
543 SOi 2,252
45}
I04i
633
131
2.041
3,151
1,047
737j
144,420
1,862
1,471
2,025
3,443
2,676
13,875 ,^2} 50
59l 56J
67 63i
984 95
89^ 89i
4Si 42
79J 77
163i 163}
32t 29}
High Low Sales
954 79l
1254 125
3,021
1.2021
1.135
78.453
200
733
72}
51
684
10.218
1.027
12.442
7,337
1,201
17,031
1,941
8,032
1.164
92 85i
97i 83i
601
I02i
3205 694 67
39:i)ominii
H Ooodv
4»i
321
79 744 34.680
6.722 I04i 100
385 160 IS9i
209i 192
! 25 2li .
.Pref.
al Cottons. Limited Com 61
w •• •■ •■ Pref. 1004
fit Montreal L. H. and Power ! 88»
•" Miintrcal Loan and Mortgage j
fifi Ml. nt real Telegraph | IM
eal Tra
ries, $100 Par Com
... Pref. .«
el and Coal Co Com. 66
•• ...Pref. 105
72lOgilvie Flour Mills Co...., Com. 22S
73| Pref.i 107J
74;Ontario Steel Products Com.! 28
TS ■• •• •■ Pref.
76 Ottawa L. H.&P.
77 Ottawa Traction..
78 Penm
79
fi2 Montr
fiSi National Brewe
69]
70] Nova Scotia St«
I's Limited .
390
1.229
4,499
, 614
I 100
' 90
594
100
84i
803 75 1.252
W Price Bros Com.j
l<li Prov. Paper Com.
S2| " •■ Pref.i
81, Quebec Railway.Light, Heat & Power Co. '
!<4 Riordon Pulp & Paper Co Com.!
8,5 " •■ •• ■' Pref.
86 Russell Motor Car Com.
87; Pref.!
Jv^'Sawyer-Massey Com.
89! ■• •• Pref.
911 Shawinigan Water and Power Co
illiSherwin-Williams Co Com.
il2| •■ •• Pref.
93 Spanish River Paper & PulpCo. . . Com.l
94 ' '• ....Pref.i
•)5' ■' " " ...Pref. 1914
'Jtii " " " " ...Voucher
97l Steel Company of Canada, ., Com.
98 •• " " Pref.
99 St. Lawrence Flour Mills Com.
ino " " " Pref.
101 Tooke Bros Com.
1112 ■' Pref.
103 Toronto Railway
lot Tuckett Tobacco Co Com.
KM " ■' " Pref.
lOfiTwin City
107 Winnipeg Electric
HIS W;ivaKamack . ..
Hill > .ihLisso Cotton..
Ilii:\\ mdsor Hotel.. ..
11 Woods Mf>!. Co.
117}
94i
40 I 106 105
172 215 200
160 110 110
150 I 324 30
10.659 , 123
67 63i 1.110
119i lis
80} 754
7,098 , 1174 115
2li 174
774 65
2.680
2,958
1,370
91^ 90
27* 25
2,705
6.047
1,135 , 50 .38
2.056 ,
963 39} 34
974 94
230 160 157
1.300 2USi 201
724
Sli
824 694
90i 874
131 J 120*
103i 1024
184} 172
72 69j
87} 85 6.977 • 93 89
207 191 4 8.42S
217 200 194
267 no 109
324 26
183 171
1014 100
,577 ! 165 166
375 53 51
16 874 874
).203 2li 17
>,026 1224 1173
884 8li 23.427
87J
44
.554
61 574
944 93}
29 27
1854 173
1,140 86 74
20 ] 104} 102
195
lOS
182
102
378
40
88
84
890
6.93
693
25
84*
104
68}
118
147
834
104
85
il8 '
1444
142
29
3.649
26
48
%*
964
150
91
944
131}
90
80
122
44
37,453
15,441
1 12'
Pref.
T li E MONETARY TIMES
Volume 6G
MONTREAL STOCK EXCHAIVGE
Comparative Statement of Prices and Sales, April-June
STOCKS
1S19
APRIL
192
1
1919
MAY
19-21)
1919
JUNE
1920
High Low
Sales
High
Sales
High
Low
Sales
High
Low
Sales
High
Low
Sales
High
Low
Sales
1 AlMt.lM
Com-
. . . Pref.
65i 62
120
340
96i
286
95
2,089
244
80
106
64
105
874
30
824
108
95
94*
20
107
434
S45
94J-
10
2
3 AmcsHoldenMcCreadv
Com.
.... Pref.
33 28i
77 73
3SS
1,317
37*
89
2,363
7,380
132
109
6,835
14,235
107*
100
1,407
753
99
2,111
96
83
1073
97
832
4
— Com.
03 55i
2,223
82i
74*
1724
67
57
3,399
74
70
4854
80
68*
3,597
89
72
4,424i
5
...Pref.
78* 75
1,621
•91
88
200
81
77
1,031
88
215
88*
834
690
6
.. Com.
28* 23
1.993
90*
83?
27,648
25
23
2,837
96i
89-
21.020
46ij
31
6,616
136
924
> 41,090
7
... Pref.
82 75
2,350
120
115
242
93
82
2,570
120
117
55
101
893
2,700
1.56
125
2,263
«
J Bell Telephone
10 " ■■ N
11 Brazilian T.L.& P. Co
1324
125
3,205
103i
493
120}
111*
1,006
1064
103
643
fl
ew Stock
10
55 52
4,251
48^
421
9,538
,59J
54
12,340
48*
413
16,660
60
57
10,618
48
42
9,974
11
47i 46s
165
60
57
72
54l
46*
5,218
57
5-21
175
54*
654
49
2,725
53*
40
1,981
12
Com.
58i 55
954
93
81
59,065
63
55
25,-599
117
91*
44,884
614
28,401
14(1
1134
80.972
13
. ...Com.
67 64l
1,683
69
65
4,056
69i
66
4,387
66
64
2,224*
70
674
3,671
66
61*
14
.... Pref.
lOli 99i
894
95
9H
476
101*
99j
711
93*
91
452
1013
100
1,093
93
90
370
15
395
197
195
80
240
220
765
193
1854
201
213
Ih
.... Pref.
— Com.
Com.
89
784
89
25
11
IS Canada N.W. Lands
40
80
40
72
25
9,597
40
504
40
44
25
11,289
:;;;:::::;;. .::;;...,
18
45* 43
80| 77!
1,076
71*
3.514
52J
484
4,934
763
M
3.495
19
2? " ■• •■ Vot
ti Canadian Pacific Railway
.... Pref.
4,693
83*
SO*
2,750
87
80}
16,603
85
812
1,493
87*
84
4,381
21
ng Trust
71i
68
660
21
135
65
135
55
50
1,865
171}
33i
1715
30
,50
2,863
1674
47
1674
30
200
12,230
?■>
. . . Com.
■Ml iS
1,385
54
49
220
57
50
895
23
-Pref.
90 88
2,660
106
99*
1,811
92
88
2,840
993
98
925
99i
89
3,795
99
96
1,440
24
25 Can. Consolidated Rubber Co
■■'5
.... Pref.
57i .50J
3,297
75
68
1,982
57i'
55
1,627
69
63*
2,815
58
56
1,024
75
70*
2,356
27
.. Com.
86 74i
5,260
91*.
sfiS
830
90
83*
4,728
95i
88
1.5.30
85j
81
425
98
93
990
2t
29 " . , " " .
. ..Pref.
87} 81
548
78
77
147
86
85
381
80
773
146
86
83*
170
80
78
489
91
39
V8t
116
108
1,589
105
103i
427
114*
112
205
104*
102
484
31 Canadian Locomotive
S2 , "^ p ^^"^.^^
Com.
67* 62
91 90
635
295
944
25
701
664
1,888
784
94
85*
60
157
87*
85
%
3'>
. Com
S25 par
35
27
305
2,640
15
293
15
28
50
5,229
34
27*
25
25
145
3,328
15
31?
13
28
30
25,069
284
263
22
25
372
1.771
,33
34 Consolidated Min'K & Smelt. Co.
30 26}
7,100
34
41 41
125
39
39
125
44
39
9,300
234
23*
40
34
1,500
1-23 123
42 35
3'
1,426
104
64J
101
57*
1,621
1,090
413
1,120
101*
63
95
57
1,470
1.620
115
53
100
44
684
2,676
99
65
94*
593
366
2,828
,36
Com .
45i
37
38 " "
39 Dominion Coal
. . Pref.
80i
80J
S
91*
91*
5
88
88
5
92
92
10
84
84
10
38
.... Pref.
90?
86
151
98
95
76
87
86
20O
100
97
10
87
86
3a
...Com.
62 60*
10,755
71*
66j
9,443
633
60
22,711
72S
63
11,41*
68*
6-23
52,543
69j
59
11,420
40
Pref
97* 96
227
89
87
120
100
96i
302
88
86
99*
97
223
.. Com.
ll5i 107
5,880
130
126*
2.788
119*
112
6,319
132*
126
2.230
116*
108
1.914
1284
3,031
106 106
123 12j
56 54
55
104
35
95
103
191
105«
104
1-23
114
1044
100
66
106
102j
191
105
3?i
102
324
55
50
4a
44 Goodwins Limited
— Com
44
265
83
82
35
45
46 Hillcrest Collieries
48 Howard Smith Paper Mills
49
50 Illinois Traction
51 Intercolonial Coal
51
44
810
55
55
5
.50
48
215
56
55
25
46
....Pref-
.. Com-
80
71
SO
65
25
355
130
4-
70
74^
8'2S
75
6.978
81
72
1.19
130
2,232
48
... Pref-
...Pref-
— Com-
Pref .
100
70
98
t9
213
71
Sli
80
811
80
210
1
102
69
98
68
735
56
95
80
85
80
275
1
102j
69
100
67*
3,53
160
4'^
50
--• ;
52
5» Lake of the Woods Hillmg Co.
Com.
...Pref.
162* 160
lOB* 106
207J 205i
H8 64
120
136
1,875
102
200
104
187 J
103*
604
102}
102
100
11
,54
55 Laurentide Co
225i
71
55
. . . .Com.
84
67
1,110
05
805
71
55
785
82
66
3,753
76
58*
1,428
56
SV.Macdonald Co.. A-. Ltd
58 Mackay Companies
60 Mapie Leaf Milling Co
. , , Com.
■24 23
76 74
555
34S
79*
7SJ
70
70
12
58
...Pref.
...Com.
. Pref.
.Com.
68*
68i;
5
59
150 137
99 99
72J 65
2,876
1
265
2.556
169
490
161i
161i
20
60
105
68
105
67*
1
146
61
62 Alontreal Cottons. Limited
83
82
135
71*
69
951
813
81
25
82
79*
175
62
... Pref.
103 102*
93 894
105
88
64 Montreal L. H. and Power
6,387
m
4.017
92
89}
9,508
85
83.*
3.722
904
8S
4,960
87S
824
5..375
64
IS3i 153J
120 120
66 Montreal Telegraph
147
118
1444
118
144
52
12!
120
.54
118
115
123
12S
ai14|
169
125
1143
128
37
118
118
100
66
68 National Breweries. $100 Par...
69 " " ■' . . .
70 Nova Scotia Steel and Coal Co.
Com.
.... Pref.
78 30
92 68
734
46,741
21,983
68
2,845
96^
96
21
99
90
1,559
95
95
1
98*
97
175
93
93
4,50
69
Com.
....Pref.
66 G6
190
S7j
107
240
673
105
235
38
135
107
2.57
105
216
27
1,951
235
233
ii3'
110
260
107
2,50
32
. 458
103
234
103
225
,5
113
71
219 195
592
72
73 " " '■
.. Pref.
110 109-
113
10.^*
105
76
109
107
16
105
104
80
110
108
134
104
994
113
71
...Com.
28 27
110
58J
56*
755
35
27
1,225
68
55
2.012
363
31*
1,645
ri
67
1,584
74
. . Pref.
75
81
75
81
125
1
/6 Ottawa L. H . & P
82i 82i'
156
81
77*
142
80
793
36
823
82
33
79
79
4
76
68*
124*
684
118
20
651
r,
78 Penman's Limited
Com.
95 90*
1,828
121
118
815
95
92
1,150 •
95
93
205
1314
121
997
78
Pref.
93 92
211
90
335
132
90
285
130
30
830
30
93
9l4
310
125*
300
125 J
505
20
367
92
91
31*
310
92
91
24.;
1,099
10
5
31,176
80
81 Prov Paper
Com.
. ...Pref.
ower Co.
55
53
125
81
90
20*
88
18
70
4,749
K
83 Quebec Railway^ Light, Heat & P
84 Riordon Pulp & Paper Co
85 " " " '■
86 Russell Motorcar
21| 18
3,560
27
21*
4.965
26
21J
6,249
21}
184
5,481
83
Com.
121 117*
1,479
180
150
4.379
131
119
3,030
197
1493
... Pref.
- , . .Com.
95 95
5
lOOi
100
100
99i
97
292
994
954
176
100
98
152
99
88
S3
86
8?! " " "
88 Sawyer-Massey
.... Pref.
.... Com.
...Pref.
■■i4J
■■i4i"
.s"
88
S<
90 Shawinigan Water and Power Cr
91 Sherwin-Williams Co
92 " "
93 Spanish River Paper & PujP Co..
9<! ". !'. .'.
I20J 116i
60 60
100 99
127*
1?1A
10,395
106*
105
2.096
125
121
2,124
114
106
2,700
90
. , . Com.
Pref.
72
191
75
93
75
91
35
22
105
78
270
91
100
99*
106
93
91
107
102
100
45
92
90
61
92
. . . .Com.
20i 19
3,025
80
28.362
27*
19
32.596
96
84i
16,850
424
26*
55,432
108*
94
54,744
93
...Pref.
82 78
1,121
144i
130
28,556
106
80*
23,531
13.5*
1281
4.230
110
llOi
16,484
149
103*
Pref. 1914
Voucher
Com.
95
71
1,525
100
94
1.605
9.'
86|
5*
77
392
12,504
6i
78
6i
75
85
5,180 ■
7i
78
6
94i
312
4.192
96
97 Steel Company of Canada
98 " " " '
99 St. Lawrence Flour Mills
loo " " "
66 6U
7,311
6S*
62*
11,455
73|
65i
•37,980
97
Pref.
97* 93*
445
984
97
540
98i
97
411
971
954
218
984
97
Svl7
97
Com
94 90
1,878
110
106
170
110
92*
11,524
106
984
477
113
1064
2,585
99
99
.... Pref.
88 S5
62
95i
95
107
92*
88
18
9.-.
95
5
97
35
28 26
76* 75
64
327
70
88
70
87
6
250
40*
86
30
76
1,131
1,150
69
86*
67
86*
500
70
43
86
.35
85
1.150
265
90
84
225
'02 " "
.... Pref.
102
53
5B*
85
433
50
85
412
630
10
444
51
85
42
46
85
308
230
.50
4Sj
40
88
40
38
88
774
15
10
424
50
873
39
.50
85
:i4i
75
55
io;-
37* 27J
1,581
225
40
90*
34
88
1,120
105
IIH
•05 ;■ . •■
... Pref
105
353
353
1
34)!
31
lOb
l07 Winnipeg Electric
log Wayagamack
109 Wabasso Cotton
110 Windsor Hotel
111 Woods Mfg. Co
"so 50
31
130
30
108
125
16,408
107
471
91*
823
S,876 .t
50
50
350
111*
87
10,554
SO
45
2,231
108
75 69*
746
120
no
213
86
75
1,206
120
119
72
104
1 86
72
lOOi
8i*
10
100
92
n
107
823
106
82,'.
200
32
. Com
102
90
90
87
421
40
95
95
95
87
60
85
111
90 89
518
86
85
5
112
January 7, 1921
THE MONETARY TIMES
MOXTUEAL STOCK EXCHANGE
Comparative Statement of Prices and Sales, July-September
STOCKS
1919
JULY
1920 1
1919
AUGUST
1920
1919
SEPTEMBER
1920
Hiiih
Low
Sales
High
Low
Sales
High
Low
Sales
High
Low
Sales
High
Low
Sales
High
Low
Sales
8()
lOfl
260
70
80
107
79
105
55
70
121
116
92
3,676
450
93
89
150 '
90
89
161
91
91
5 ■ .'
3 Ames-Holden-McCready
..Pret 101
93
13,996
98
73
1.815
103i
92i
6.647
74
64
1.069
110
9Rf
16,703
704
594
878 J
5 Asbestos Corporation
..Com. 7Bi
70
2,553
88
82
3.777
75
Ti
1.323
86i
75
1,302
77
73
2.460
100
85
7,731 5
..Pref. S5
80
846
98
92
1.177
8.i
82
550
9?
90
427
88
82S
1.0,50
107
97
1,535 6
7 Atlantic Sugar
. Com. 55
431
12.911
Iftl
131
41.740
52
449
3.959
149
127*
19,265
62i
43^
31,906
144
124
10,204 7
.Pref. 115
103
1,140
185
153
6,010
llli
100
430
175
144
878
115
103i
778
141
135
57 8
697
120
315
104
100
716 ; 4
10, ^■e^
57
S2A
16,(107
11,295
45
51 «
401
43
12,208
410
57.J
65
50
595
8,092
L335
41
.57
36
47
15.412
20
.53
64
50
61
11,545
1,790
38?
49
35
45
8,453 II
12 ' ritish Columbia Fishing & Packing Co BAi
127 1 12
61*
68
22,090
5,637
151
62
137
58
29.890
2,625
6!i
70
57
67
5,959
2,523
66i
73A
58ii
69
18,467
5,8'i7
U Canada Cement
..Com. 71^
61
55
4,476
64
57*
2,504 i 14
...i>r£f.' 10'2
100
922
92
89i
501
\mi
100
516
90A
89
476
101
100
1.134
91
90
717 ! 15
17 " " ■■ •
. Com. 209
I85S
6,208
190
116
838
195,
187
76C
120
114
325
200
183
1,522
120
I19i
190 1 16
40
R5
40
53J
25
16,509
!a
. .Com. 521
491,
5.513
788
71
9,001
55
*'.
6,498
72
64j
2.716
66
553
3.127 t 19
20 " " " " ■
. . Pref. ffiS
83
7,236
83
78
1.832
M»
81}
4,607
791
74J
69i
1.874
8S
8?
5,649
80
73J
1.409 20
72
69
2.120
691
15
«5
.52
1,7.58
64
64
200 i 21
136
133
206 1 ■>■>
23 Canadian Car aod Foundry. ■ . ■
..Com. 44
39
7,006
60
53i
520
39
n
1,320
.58
49
435
48i|
36*
14.046
48
42
265 23
24 " " "
...Pref. 100
9.S.4
4,212
lOli
96
1.90S
98
1,880
97J
94
521
lU3t
964
4,781
9s
90i
446 24
Pref. 100
100
10
67
.%}
80
71
2.562
64
63
360
74 J
69
610
68
64
1,266
76
7?*
900 27
28 Canadian Cottons. Limited .. ■
...Com. 95
7rJ
2,640
100
94*
2.044
92
86
124
95
90
570
94
89
2,540
95
89
115 28
29
...Pref M
84
.350
79
76
•227
844
83j
177
79
78
143
85
8:1
107
80
77
274 29
40U 102 lOfli
170 102 99! 8.56 108 106
35 Crowr
36 Oomir
37 Domir
38
39 Domir
40 Domir
41 Domir
42 Domir
43
44 Goodv
Keserve Mining Co 40
ion Bridge 1074
ion Canners Com. 59
Pref
ionCoal Pref.
ion Steel Corporation Com.
ion Iron and Steel Co Pref.
ion Textile Com.
874
874
10
28
25
385
284
25
2,272
25 1 87* 85
30} 284 4,a51
4.196 30i 29
90
8-2
47
1,384
425
lis
.565
944
47J
4,434
5,896
81
65
81
81
.58
78
.30
9.592
13.1
98
70!
100
98
67
963
77
38,902
168
46 Hillcrest Collieries
47 " "
48 How.ird Smith Paper Mills
62 Mo
63
64 .Montr
65 Montr
66 Montr
K7 .Montr
68 Natii
lited Com.
Pref.
.Com.
Pref
Com,
•Pref,
50 Illinois Traction Pref
51 Intercolonial Coal Com
52 " " Pref,
53 Lake of the Woods Milling Co Com, 190
54 Pref 106
55 Laurentidc Co ,. . 222
56 Lyall Construction Co Com. 834
57 Macdonald Co.. A.. Ltd Com. 36
58 .Mackay Companies Com. 784
.59 " ' • ,
60 Maple Leaf Milling Co Com. 1774
61 Pref. 106
eal Cottons. Limited Com. 71)
Pref. 103
cal 1-. H. and Power 95
al Loan and .Mortgage I
al Telegraph 125
al Tramways
nal Breweries, $10«1 Par. . Com, 187
69 '• ■• " Pref. 994
70 Nova Scotia Steel and Coal Co. . Com. 90*
71 •■ •■ •• •• Pref. UJj
72 0gilvic Flour .Mills Co Com. 2,55
73
74 Ontario Steel Products Com,
75 Pref
76 Ottawa L. H. & P
77 Ottawa Traction
78 Penman's Limited Com,
79 •• •■ Pref
80 Price Bros Com
81 Prov. Paper. Com
82 " ■■ Pref,
83 Quebec Railway. Light. Heat « Pr. Co. 2(^
84 Riordon Ptilp& Paper Co Com. 145
85 '■ " ■' ■■ Pref. 99i
86 Russell Motor Car Com.
87 " " '■ : Pref
88 Sawyer. .Massey Com. 21
89 " " Pref. 60
90 Shawinigan Water and Power Co 127
91 Sher\vin-Williams Co Com. 65
92 " " " Pref. lOOi
93'Spanish River Paper & Pulp Co.. Com
94
95
97 Steel Company of Canada .
105
106 Twin City
107, Winnipeg Electrii
108 Wayagamack. .. .
109 Wahasso Cotton
110 Windsor Hotel
111 Woods Mfg. Co.
Hi " " ...
Pref. 109
• Pfd 1914 1(14
' Voucher 5}
Com. 763
Pref. lOO
. . Com.
Pref
THE MONETARY TIMES
Volume 66
MONTRKAL STOCK KXCHAIVGE
Comparative Statement of Prices and Sales, October-December
1919 » OCTOBER 1920 I 1919 NOVEMBER 1920 1919 DECEMBER
.Com. I
.Href.
-Com.
Pref.
. Com .
.Prcf.!
Com.'
. Pref
3;Ames-Holdcn McCready.
4
5;Asbestos Corporation .
G
7 Atlantic Sugar.
9 Bell Telephone.
10 ■• .New Stock
11 I'razilianT.L. & P.Co
12 British Columbia Hishing & Packing Co.. .
13 Brompton Com.
U Canada Cement com.
15 •■ ■• Pref.
16 Canada Foundries & Forgings Com.
17, •• " " Pref.
18 Canada N.W. Lands Com.
19 Canada Steamship Lines. Ltd t om.l
20 • •• •' •' :.Pref.
21 •' •' " " Voting Trust
22 Canadian Pacific Railway
2» Canadian Car and Foundry Com.i
24 " " " Pref.
25 Can. Consolidated Rubber Co Com.
26 •• •• •■ Pref.
27X'anadian Converters \
28 anadian Cottons, Lin ited Com. I
29; •• " " Pref.l
30 Canadian General Electric
31 Canadian Locomotive Com.
32 •• •■ Pref.
33 Carriage Factories Com.!
34 Consolidated Min'g & Smelt. Co... .825 par
35 Crown Ke^er^■e Mining Co
36 Dominion Bridge 1
37 Dominion Canners Com I
38 ■• •• Pref.l
39 Dominion Coal Href.j
40 Dominion Steel Corporation Com.'
41 Dominion Iron and steel Co Pief.i
42 Dominion Textile Com.
43| •• •• ...Pref.l
44!Good\vins Limited Com.
45 •■ '• Pref.
46 Hillcrest Collieries Com.
47 •• •• I'rtf
48 Howard Smith Paper Mill-
49,
112i
1I6J
545
17,582
15,S20
6,390
1,703
80,436
1,17,1
397
ll7A
1174
25
,S54
50
23,480
73
62
6,716
S5
64i
62,513
74 (
70
7,266
lUl*
100
1,009
High Low Sales [High Lo\^
H35
loss
lOil*
NOVEMBER 1920
Sales
H igh Low Sales
1.960
8.5HS
90 KB 15
1.125
6.1»3
1 ,275
21,930
38* 34i 7,B39 53j
87i 83J
1134
1053
»3J
7,245
16,210
2,000
11.3^1
12,481
20
94|
120}
Ircf.
oOj Illinois Traction Pref.
51 Intercolonial Coal Co.ii.'
521 " '• Href.
aSlLalee of the Woods Milling ' o Com.
54j " •• Pref-!
55jLaurent'de Co j
56iLyall construction Co Com.
57l uacdonald Co., A., Ltd Com-!
58 Mackay v onipanies Com.l
59: '■ •■ Pref.]
60 Maple Leaf Milling Co Com.'
61, Pref.l
b"2!Montreal Cottons, Limited Com |
63 " " ■• Pref.l
64 Montreal L H. and Power 1
66;Montreal Loan and Mortgage t
66 Montreal Telegraph
14,663
28,217
9,1.62
1,486
36
10.184
67: Mo
al Ti:
68, National Brewe
SlOO Par Com
691 " ■' •'.... Pref.
70 Nova Scotia Steel and Coal Co Com.
7li ■• " " " Pref.
72;Ogilvie Flour Mills Co Com.
73i Pref.
74 Ontario Steel Products Com.
75 •■ "• " Pref.
76'ottawaL. H. & P
("iOttawa Traction
Com.
78! Pen
791
80j Price Bros.. Com.}
8i:Prov, Paper Com. I
82' •■ •■ Pref.!
83 Quebec Railway, Light. Heat & Power Co.;
84; Riordon Pulp & Paper Co Com.;
85l •• ■; " " I'ref.
86 Russell Motor Car Com.
871 Pref.l
SSlSawyer-Massey Com.
89 " '• Pr.f.
90 Shawinigan Water and Power Co
91 Sherwin-Williams Co Com.
-Pief. 98-* 92j
24| 20h
159 145
98 97i
102i 91i
%l 96i
92
93 Spa
sh Rh
Paper «: Pulp Co Com.
941 " " " " Pref.[
95| " " " " Pref. 1914;.
96l " Voucher
■ 97iSteel Company of Canada Com.[
JS' •■ •• " Pref.:
99 St- Lawrence Flour Mills Com.i
100 " '■ ■■ Pref.l.
lOlTooke Bros Com.
102 •• Pref.
103 Toronto Railway i
104 Tuckett Tobacco Co Com.;
105 ■■ " " ref.
106 Twin City
107 Winnipeg Electric I.
108 Wayagamack . .
109 \\aba so Cotton.
no Windsor Hotel I.
Ill Woods Mfg. Co. Com.
112; ■• ■■ Pref.l
Pref.l 100 100
8,057
4,329
3,914
41,947
1.395
21«
55
17,'- 80
2 249
40,435
, 3,345
2,328 S6 83}
97i
337 112.^ 108
407 1 14 103
5,473
4,150
3,183
3.950
5,943 I 73^ 68 65,958
1314 119
9Si 96
2.991
l.li24
36,275
103i 100
37}' 34
122 1193
116 1 101
1154 1154
53i 49J
733 70
100 97
1954 187
3,97S3
3,031
36.579
317
801
20
12,762
1.725
33,080
4.370 I
1.204 I
2.049
49*
34
7.862
70-S
60i
2.342
46
44
15
675 109 104
- 5 96 954
' 94J 94I
224 15i 9.640
4.399
60.565
4,a94
2.680
454 10.176 I 754 70 36.041 | 40 39
3.505 147 135
406 113 99£
223 2'.'9 220
110 109 108
98 9 4
85J 781
125 125
664 "eoi
20 ' 125 120
111 108 1053
284 24
2214 19SJ
91)4 90
229 139 134
11.111
8.146
9.892
56 I 110 110
'23s I T(i6 1044 257
705 200 175
.137 112 106J
500 I 280 250
lOOi 100
734 641
123 1144
UJ 90t
83 80I
3.578 ' 78i 684
60 100 994
48
44
467
50
49
20
40
40
10
35
31
73
150i
134
6.706
6 Si
8SJ 75*
45i
4«J
46i 42
60 514
90i 89
25 mi lOT
8,219 I 34.
3.363 I 1104 96S 3.909 ; 42-
|100
1 101
102
98i 77 5.460 jlOS
January 7, 1921
THE MONETARY TIMES
BONDS QUOTED ON MONTREAL STOCK EXCHANGE
Comparative Statement of Prices and Sales, January-July
UONDS
191^
JANU.^KY
192(
1919
FEBKUA1«\
1920
1919
MARCH
1920
Abitibi .....Con. Del
.Stock
HiKh
Low
Sales 1
High Low
."sales
High Low
Sales 1
Hieh Low
no 110
Sales
810,500
HiKh
jOW
Sales 1
HigL
Low
Sales !
V
1
1
j
1
\t
3
1
1
[
90
77
93
971
90
77
923
95
2,500
13 200
1,500
21,400
I
j
■^
Asbestos Corporation
80
75
$12,925
79
92
100
7.ii
88}
77
92
99
76}
87i
$18,200
soo
13,200
2,000 1
29,000
85
954
lOU
75
951
98
817,100
9,5110
6,500
85
763
$46,575
781
92
94
77}
90
91
S38.100
10.000
93,b00
4
.5
(\
98
97
20,100
100
99
8,800
6
7
8
9
10
C n di Ste mshins
V
C 'rf' aAPnnl"
93
93
5.000
1
891
87
33,166
■"':.:;;;: i
90
89}
18,500
X
Canadian Consolidatet
Canadian Converters
Canadian Consolidate
1
941
943
10,000
9
1
1
90
95
803
934
94
803
921
1,000
17,0110
1,000
2.000
:;:: :::.: ;.. i
(1
90i
81
92
90i
8ll
90J
6,300
7,h00
20,000
9S
84
94
80
25,200
12,500
94
84
921
84
9,500
1,000
96
80S
95
801
9,000
1,800
94
84
94
93
84
94
4,0(10
I,Ol;0
1,000
88366
,57 SOO
9,5(10
17.9(10
5 500
42,000
21,500
28,(KI0
146,400
120.800
429.000
250
1
)'>
cc, 1922
ay. 1923
pt., 1!>23
2
13
U
15
16
17
Can;idi:in Locomotive.
Carriiifie Factori s. . . .
City of Montreal 1)
;i
1
69|
90
1013
102
101
913
893
881
100
1004
1001
913
20 0(10
31,300
29,800
153,200
76,200
9,i>00
4
88
lOli
101}
lOOi
87
1003
1003
100
20,400
lO.IUO
99,700
137,500
883
102
101
1003
86
1004
lOOi
991
50,900 1
3.100 1
1.600
18.800
893
1013
102
101
87
lOiil
looi
100}
64,900
39,100
95,41 0
45,600
881
104
104
100
92
87
97
854
9«i
%
100,
981
86
100
100}
!'9}
92
85
%
943
944
98}
984
60,100
18,300
5,700
21 200
8,200
15,.S0O
8,000
26.000
1 13.400
112.300
223,200
1 000
88*
106
105
100}
91 i
88
97
8,5)
991
98
864
102
101
100
91
871
961
84
94}
94
971
98
15
16
17
18
9
20
21
^1
881
961
97
98i
92
98
87
96
CSS
96
6,500
12,5110
29,l«)0
37,600
71,700
313,000
871
99
86
961
96?
99
99
99
991
87
97)
85
95
941
"84
98
98
98
12,500
7,000
37.000
56.800
115.200
258,71:0
7.50O
3.000
8,000
93
99}
88
98
97
98J
98
93
96
96
97
98
l,.50O
4.000
8.000
29,600
37,10"
156,050
20,5CJ
>t'
n t' rr 1
:
M
Dominion Iron and St
Dominion of Canada
Dominion Textile Con
Lake of the Woods M
Laurentide Paper Co
Lyall Construction C
.Montreal Street Railv
90
99
991
100
99
991
881
97}
961
98
99
991
28,000
43,3110
51,700
588,4,iO
3„500
2,000
22
23
24
25
War Loan..
...192,5,
. ..1931
....1937
23
24
25
26
27
28
29
30
31
32
33
34
33
;«
37
38
39
B...
97
971
97
97t
3,000
6,01.0
Xi
98
98
1001
978
98
1(0}
lOOi
24,000
5,000
1.000
10,000
9M
99
100
98
100
19,000
I, COO
m
991
991
5,000
991
994
2,000
9H
99i
2,000
991
991
12.000
•w
V
93
92
6,000
85
85
4,000
r
■12
*
:: :::
93
93
2,000
;«
86
76
90
94j
86
72J
90
834
soo
65,300
10,000
19,900
:i4
Debenture S
tock..
74
"is"
101
723
82
101
89,000
2,806"
2,000
711
100
82
1001
ioo{
%
83
69
%
69
loo
80
100
99
97
883
8l3
62
95
42,200
5000
3 0011
2.000
6 000
11.000
24.H0O
31.800
159.500
8.70O
741
100
70
100
70,600
4.000
76
72}
44.500
81
71
42.300
35
36
.\ova Scotia Steel & (
^•■"j ■ ■
88
831
1,400
83
82
5.500
37
"*
100
99
■90 '
85
65
94
98
1(10
lOI*
104!
KKl
10'2}
100
99
881
79J
62
931
96
983
993
10(1'
983
1.000
2.000
40.666
29.71!0
101 200
3500
35,600'
276.9-0
149.900
,192,;K(0
(;8I1,51K)
.201.3.50
;is
Penmans
B
C
102}
102
100}
88
2,0.)6
1,000
10,000
102}
1021
91
85
701
102
IO2I
89
85
60
8,000
1,000
18,300
son
67,000
100
99
95
84
631
95
100}
971
983
993
100
98
99:
84
86
100
99
88)
84
62
93
100
961
983
993
100;
91';
99;
84
853
5,000
4.000
26.8(K)
I.COO
.5:i,90,l
20.600
7.000
8,600
224 3S0
25.050
159.700
231.9110
60'.250
1.000
12,200
;i9
4U
41
87}
87
7,300
41
42
43
Queheu Railway, Light and Power
Co
. . Deb.
6Ui
as
98
iooj
llioi
1032
IIHI
102
' sai'
60
90
98
98
100
1013
99*
101
'«
2.100
,S,5<0
2,000
755,850 '
2,56,700
474,9.iO
385,9,10
,781,400
60
941
98
961
looa
1011
104
lOOil
10/3
84
59
94
95
943
995 I
1(10}
l(r2}
101}'.
84
86
6,100
15,2(10
5„500
10,500
.;106.(HKI
183,100
3K4,90(I
9!I0,4,5()
,:«6 100
20,000
94,600
43
4S
46
47
48
49
.SO
SI
.52
53
54
55
Sherwin-Williams Co
Steel Co. of Canada.
Victory Loan
Wabassn Cotton.
WayaM.imack
West Kootenay. ■
Windsor Haiel
WinnircR Street Rail
1919 API
98
96
100
103
106
100
105
u
98 .500
964 800
9Hi 746.600
101 113,200
103} 360,800
100 1,0:13,100
102 2,581,100
84 131,030
861 171,100
45
:::
1922
1927
1937
1917 issue.. 1923
1933
96 «
100
Kill
104}
100
!02i
90
87
9«i
95 37,000
98 l,264,;lOO
\m 261,900
10-.' 402.9,50
984 81 3,8.50
1014 1.6)5..5(10
90 I.IXXI
851 46.800
96) 10.000
46
47
48
49
50
51
,5?
86
85
4,900
S3
,54
80
80
27,000
.55
vav '
■.■.■.■.;::
56
tlL 19^0
Sales
1919 .11 /
iY
IU20
1919 JU
NK
1920
1919 JULY
1920
HiKli Low S.ilos
HiBh Low
HiBb
Low
8nlu>i
HiKh Luw
Sitliw
HiKh
Low
Mnle8
HiKh
Low
Sales
HiKh Luw
SaloB
High
Low
Sales
1
3
4
«
100 99 SI2,000
99
.40
781
96
lOOl
97
99
90
78J
96
100
$51,000
6,000
5,700
3,000
•27.166
100
93
90
96
101
80
98
96
89
93
78
%
99
81)
98
96
$17,600
1.000
8, '00
2.000
15.500
1.320
7.600
1,000
101
99
$15,800
2
3
90 77 S8,S00
9«i isi 15,000
100 99 27,900
90] 90i
9:1 92
76j 764
90 89
$7,300
2.000
50,400
7 000
.34.800
90
^1
77
$4 7.50
3.S00
8.500
90
91
9'2l
75
893
77
90)
92
75
893
$5,625
6.000
9.200
10.000
10..500
90
96
101
76
96
99i
29.225
1,000
I9,S00
9'.
90}
92
77
901
90
»2,750
1--,0(IO
5,500
4
5
6
3
9
lU
11
12
13
I4
IS
le
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
95
2,000
90
893
14, .500
901
983
893
983
20,100
10,000
8
y
961 95 4.200
85 82 2,000
92 92 100
931 93
83 83
6,000
500
96
96
3,000
93
84
93
84
1.000
2,000
96
96
3,000
93
921
4.000
96
85
95
85
14,000
2.000
92
92
2,000
11
12
■'95
95
1,000
13
'ss'
101
lot
994
924
89
96:
H3
9-2
91
92
94
90
102
102
lOll
95}
96
993
90
lOOi
tool
'^1
89
88
100
101
101
941
95
891
97
973
2,000
7.400
7 100
5.300
5.100
5..5<iO
3.000
8..500
8.000
103.400
102,300
315.800
500
106%
IS?
14
90 88 j 64,300
101? lOli 16 400
102 101 11.300
101 lOOj 20,-.'00
9-2* 924 2,000
95 941 6,000
99i 981 17,000
89j 89) 3,000
998 981 139,400
993 9 i 84.000
lOoa 99} 133,650
9t)l 99 1,500
99 99 .500
99 98j 2,750
871 86)
104 101
104 100
1023 993
924 92<
90 87
98i %
85 8;t
95 9:f
94* 92
98J 9(i
23S0O
13,500
4,700
5,000
I.I 00
12,500
211.000
65.000
57.600
130.810
169.400
891
lois
10'2J
101
88
100
lOOi
1003
23,bOO
9,300
■268.300
.5.900
87
104}
1041
"^^
90
97
923
96
9.800
16.600
15.900
5.100
2.00O
2.000
1..SO0
4.000
132,800
107 01 0
328,700
90
lOll
103
101
97
96}
lOfl
891
101
lOli
'U
100
100
881
lOOl
100}
101
97
96
993
89
97:
98i
99ft
99
99
100
39.800
800
19.000
5.400
1.000
5.000
13,000
4 1 ,000
142,300
96.:«K)
144,100
500
4,000
12,000
86
105
104
lOOi
823
nil
101
100
28.400
21.800
4.100
11.200
824
104}
101
lUO
18 800
23.200
2,000
400
16
17
18
19
9Si
lOO
881
99
993
101
100
94
99i
88
971
974
100
100
28,.'i0fl
9.000
9.000
1IIS..500
67.450
82.900
4.250
89
97
83|
9Si
931
97}
89
97
82
94
92
951
8.000
2 .500
1.5.000
117,.550
2' '2,900
166.200
96
974
81
96
95
97
95
97
95
9*»
998
90
911
81
933
90*
953
95
95
95
95
991
2 000
8..5(IO
3.000
159.600
128 900
179.700
4.000
9.250
8.000
1.100
8,0l0
20
21
22
23
24
25
26
97 97
3.500
9S
95
3,000
97
97
1,000
W
100
991
H4
871
74
97
7.000
I1,.S1K1
ll.tKHI
47.700
16,000
U
^1
7,000
2,000
28
29
100 lOO 2,000
\m 100 7.000
991 991
2,000
102
102
3,000
99i
99J
2,000
311
31
93 " 92
81 81
714 70
991 99}
81 81
93
93
9,500
..:.::';:::;j:::;::::.
32
39,900
1 000
27,100
10.000
2,000
94
88
75
lOO
\ 92
92
9,000
33
34
35
36
37
38
49
id
41
4!
43
88 87 10,000
75 74 88,600
97 95 36,000
84l 8;( 4,000
81
70
"1,
69i
ibooi)
1.600
'74'
100
841
100
103
'rij'
100
841
100
103
;«,700
12,000
7,000
1,000
1,000
69
68
' 4,200
"723
100
85
"69 "
100
85
16,366
6,000
2,000
■'es'
67! ■
29'6C6
35
3fi
80
100
80
100
1.600
1.000
80
166
100
891
83
63}
911
100
96
80
100
100
88
83
60
91
100
95
200
;i7
103
103
1,000
991
991
10.000
:«
102i 102i 1,000
I02i 102i 1,000
92i 91 600
84» 84j 7,400
71 69 31„500
961 95 21,100
>18» HO 4,200
99 98 5,200
1003 llklj 703,3,50
103J 102 91,800
1063 1054 238,800
lOOi lOol 69 ,,200
105 lOli 1,697 650
88 874 3,500
89 88 71,700
4,000
1.000
2.500
• I.OOO
49.500
4,100
3,0.'0
7,000
102
10?}
931
86
67
98
lOOl
100
101}
1031
1063
1018
10.5}
89
88
100
801
102 2,000
IO2I 1,000
93} 100
86 2,.500
f6 3.000
97 31,000
994 5,400
f91 14,000
100 670,;«)0
101 180,7.50
1043 2.59.000
100 1.2.18,40(1
1021 1.718.200
89 K.OOO
861 14.000
100 15.000
8OI 4.000
:«
100 100
90 884
82 82
621 61
931 93
994 994
97 96
1,000
6,000
500
45.200
12.600
tiOO
28.500
1021
92
85}
69
96}
99j
■'91
101
1024
1061
101
I04j
90
881
102
92
RS3
66]
9.Si
984
97
1001
102
105»
101}
104
88
873
2,000
S,500
12„500
31,200
3,000
13,000
3„500
618,750
191, 21X)
281,600
807.1.50
l,796..50O
4,1100
21,200
89i
631
93
97,
961
40
88
18 000
93*
!)23
11,100
89
881
2.000
41
42
591
91
92
9S
57.500
14,500
son
3,000
68
97
1 99}
1 100
102i
105
1073
102i
1063
88*
663 21.600
96 1,000
983 12„500
991 9„500
1004 788,800
102 270,^50
10« 3^4,2,50
1008 1,787,9.50
103 2,349.950
88 3.500
S7l l.tiOlKl
631
61J
84 ,.500
43
4f
r
4f
100,
95}
100
95
16.000
4.000
45
46
47
48
49
M
s
5
S.
5
5.
ft
.50
"is'
84}
"Vooo
...[..'.'...'.'.'.v.
51
»4
.52
86 8)1
9S 95
80 80
28.900
2.000
5,000
29,400
1.666'
, 84
83
23.600
53
,54
,55
;::::>::::::;::;:;::::
'••••
56
102
THE MONETARY TIMES
Volume 66
BONDS QUOTED ON MONTREAL STOCK EXCHANGE
Comparative Statement
of Prices
and
Sales
, August-December
HON
DS
1919
AUGUST
1920
1919 SEFTE
High Low Sales
104 102 $52,400
VIBEK 1920
High Low Sales
1919 OCTOBER
1920
Cr
n.De
b. Stock
High
Low
Sales
High Low
Sales
High Low
Sales
High Low
Sales
1
1013
100
1131.000
;;::::;:;:::;::::::::;
?.
93
90
92}
100
93
99}
$1,000
8,4,50
2,500
40,200
3
4
5
Asbestos Corpor.ition
Bell Telephone
78
96
101
77
96
100
10,400
4,500
12..500
78
903
91
77
90*
90
$2,500
25.000
6,800
78
100}
813
96
96
77
93*
993
813
934
96
36,825
300
48,300
5.000
2,500
2,000
78}
904
92
77}
90
90
$9,300
5,000
41,900
SI.
93
70}
85
76}
90
91
70}
85
$16,600
4,000
20,700
2,000
1.000
4
5
K
7
Canadian Car & Foun
961
96
6.000
90
90
1,000
89}
89}
300
904
904
5,000
8
9
10
9
r ' ^^ n f n f tfr>i
90
91*
84
90
914
80
1,000
2,000
3,500
90
96
86
90
95
86
1,000
6,000
3,000
:;:::; : :;..::..:
10
Canadian Consolidated Rubl
96
86
943
%
83
92*
2.000
2.000
3,500
97
85
96
83
13,000
4,000
88
80
88
784
1,000
3,600
894
89
5,500
11
12
13
1'/
Canadian Locomotive
13
::::;:;::;.;::::::::::
:,:...::::::::::::. ::;r;::::;:;:::;::;::::
14
89i
101*
101 1
101
94
88
100*
101
lOOl
94
9,000
3,300
13,000
1,600
4,000
84^
106
105
100
90
88
97.*
81
943
92
96§
95*
83}
101
101
99}
90
88
964
81
93*
90|
93
93*
14,700
5,100
6,800
1,600
1,000
2,500
5,000
4000
82,000
95,800
138,600
1,000
89
101*
1013
102
94'
87
100*
101
101*
94
17,900
9,400
5,000
22,700
4,000
84
104
103
99*
81
101
100;
98*
17.000
1,100
5,800
4,200
874
100*
101*
101*
93
87
100*
101
1014
924
13,100
1 ,(KIO
1,600
,5(10
• 3,300
86
103
103
99
89*
87
%4
76
93i
91}
94*
95
984
95
82}
101
101
99,
894
87
96
76
914
89
90}
95
97
95
41,400
8,000
3,300
1,000
1.000
2.000
8,.500
7,000
1 10,200
186,000
168.200
1,000
4,000
1.000
1,5
Deo. 1922
klay 1923
ept. 1923
IK
t
17
18
19
20
21
22
23
2J
26
27
38
29
3U
31
32
33
34
...S
18
19
uominio ca
W
Dominion Cotton
Dominion Iron and St
Dominion of Canada >
100}
91
100
983
101!
100
993
99i
99}
90
95
97
97*
10,030
13,000
64,650
194,100
176,250
7.000
3,000
500
99i
99i
1,000
964
81
94
92
95
964
1%
884
90J
16„300
13,000
88,000
93,000
188,400
100
894
98
99
lOOi
99*
99
86}
97
97
100
99
5,000
13,000
120,800
208,000
336,600
2,000
21
,Var Lc
A..'.
B...
C ..
1925
.... 1931
.... 1937
98
89
io6g
99}
100
101"
974
98*
100
99}
99}
99
99*
101
83,600
58,100
175,500
7,000
6,000
10,300
3,000
1,000
23
24
25
>7
994
100
993
90}
99I
991
5,000
4,000
28,000
?S
m
0 —
101
101
1,000
30
Laurentide Paper Co
Lyall Construction Co
Montreal Street Raih
Montreal Tramways
*
31
94
94
12,200
96
%
4,100
32
■
33
.;::
34
tiir(> K
>tock
71j
100
83}
'io2i'
70
99J
• 83}
6.400
14,500
1,000
69
67
28,000
73
IOO
84
103
100
100
90
833
65i
96
lOOi
99*
io.tJ
102}
105}
lOOi
104 J
92
86
70 31,000
100 7,000
83} 3,000
103 31,000
100 3,000
100 4,000
89 30.500
85} 2,500
63 55,100
96 11,000
1004 11,000
96 10,900
IOO 7.56,150
102 106,850
104i 320.200
100 1.426,200
1031 1,684,400
92 1,000
844 48,500
69*
663
12,200
70*
100
69
100
17,300
2,000
71
934
80
98
90}
63
93
78
893
90
24,100
4.000
14,500
26,000
5,000
Vi
36
National Breweries, Ltd . . .
Nova Scotia Steel & Coal Co
Ogilvie Flour
3K
80
99*
80
99}
2,500
2.000
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
A
B
C
103
1004
100
90
84i
634
97
100}
98
100}
102}
105
100*
1032
92
894
103
100
100
It
63
96
100}
95
100
101}
104
100
103}
92
85
6,000
5,000
1,000
25,500
1,000
11,100
5,500
500
27,100
773,550
377,8.50
l,122,80p
1,136,600
4,397,050
2,000
84,400
38
1024
3.000
: •
19
40
m
921
10,100
88*
87
3,500
89
83
614
87
85
60
14,000
300
25,200
41
Price Bros
Quebec Railway. Light and
Riordon Paper ■
Sherwin-Williams Co
4!'
Power Co
Oeb,
67
98
99i
99*
lOlJ
102s
1061
101}
1051
90
87
98
634
96}
99*
98
100
1003
104}
100
102* C
89j
853
98
76.500
4.000
100
4,000
982.100
148.000
342.400
.159.900
,179.300
6,000
17,500
5,000
63
91
61
91
40,100
1,500
614
90
98
944
60
90
98
931
23,700
3.000
2,U00
8,000
43
953
954
4,500
93
95
4,000
46
48
•• ■■.■■■.■.■..'.'.'.'iiwi'iss
.. -.1937
le. . . 1923
.... 1933
51
83
82
83
80
4,500
36,400
834
82
83*
81
1,000
18,900
,52
83
813
23,900
58
55
W t K t-f av
,54
VV ]i H t 1
55
Winnipeg Street Railway
36
1
2
1919 NOVEMBEP
1920
1919
DEC EM
BER
1920
1917
1918
1919
1920
Hieh Low Sales
H.Rh
Low
Sales
High Low
Sales
High Low
Sales
High Low
Sales
High Low
Sales
High Low Sales
104 102 $.52,400
lOS! 99 200,800
93 90 88,000
90 75 284,275
%} 91 44,500
101 97 280,366
81} 80 6,320
98 90 36,600
% 943 13,000
90 90 2,000
97 90} 66,900
994 80 29,400
95 9fli 32,100
94 893 22,000
90 86 430,900
102 100 233,300
103} IOO 1,702,300
102 100 324,200
97 913 41,500
96} 86 65,500
1004 98 94,000
91 85 188,000
101 95 1,467,300
lOli 953 1.709.250
102} 96 3,311,400
100 98 74,000
100 97 40,iiOO
100 971 86,500
100 98 63,000
102 99 64,000
100} 100 17,000
96 90 62,300
94 93 13,500
88 86 21,500
76 67 750,300
lOf, 90 120,000
88 82 43,200
103 100 43,000
103 99} 67,000
102* 100 11,000
98} 87 156,600
86 84 49,600
71 59 637,200
98 90 104,100
100} 95 58,700
IOO 94* 98,000
IO2J 98 10,393.000
103 100 2.384.700
1073 1013 3,384,200
1024 994 13,167,950
1063 101 26,472,850
92 84 177„500
89,* 81 802,100
100 98 20,000
804 80* 4,000
85 83 1,000
High Low
110 no
Sales
$10,500
1
106^ 106 $45,000
104
104
$28,400
89
75
934
98
88
70
87}
95*
$69,000
261,225
37,000
63.300
90
91
93
100
764
^
90
93
84
94
90
744
90
90
70}
82
98}
90
88
784
94
2.,500
152„525
92.500
290,700
21,000
16K.0OO
10,000
1,000
66.700
24,100
1,000
3
4
90 77 21.925
91 91 SCO
100 995 10,600
76
91
9U
75
90}
91*
S28.000
2,000
19,.300
90
92
100
77
92
983
28,550
6,000
37,300
77i
91}
74*
91
$6,200
11,000
80
99i
98
70
^^1
S44.999
82,.500
194.400
4
3
6
7
8
91 90* 3.000
87
82
3.000
9 0
90
5,500
87
87
2,000
8
95
83
97
83
93
82
94
80
2.000
5.000
46,300
28.700
92
82
94
81
90
92
82
87
80
85
1,000
7,000
24,300
36,600
6,000
9
10
97 96 2000
99J 99* 2000
94 93* 2.500
89
88
6.500
11
86}
95
86J
94
2,000
3.000
12
13
13
14
15
16
87* 86 57.000
lOli 100 26.800
lOll lOOi 22.400
101* 101 1.500
94 94 1,000
99J 99 U.Oob
87j 85 17.000
97j 973 343.600
98-! 98i 652.200
lOOi 99i 631,100
99 99 7.250
100 99 20.000
100 99 3.750
100 100 11.000
87
106
103!;
993
89S
84
%
77
929
90!
93
94
90i
90
84
100
too
96
898
82|
96
75
91*
885
93*
90
90
90
50.200
2,900
3.600
1 1 .20M
1.500
4..500
8,000
35,000
73,900
169,200
160,400
2,000
3,000
7,300
87
102}
102
101}
92I
87
86
100
100
101}
9H
86
80,200
100.200
8,100
2,000
9,000
15,000
89}
107*
lOBi
844
101}
101
97
92,400
20,300
16,100
7,800
92
84
144.400
89
80
388.000
89}
Wii
92*
90
99
86
96}
%}
100
99
99
994
95
993
81 495,500
100 171,600
100 79.100
96 105,400
89* 20,200
823 109,.50O
914 109,000
75 255,000
9041.255,150
884 1„505,200
90} 2.666,200
90 19,250
90 28,750
90 33,500
90} 1,500
95 29,000
13
16
17
18
19
20
1 .
18
894
93
99i
88
99
99
%
99J
994
99
983
104
101 i
93
89} 1.000
83 64,500
974 60,30G
85 174.000
95 3.295.700
91^3,226,500
92 3,316,700
97 26,500
98 6,750
97 25,000
98? 2,000
993 13,000
101 25,000
84 56.700
89*
92
99
86*
97
96*
97|
98*
98
97*
98
00*
101
193
90}
89*
85
953
84
93
92
91}
93
96
94
96
■00
101
92
90*
2.000
49,500
.50„500
101,000
480,800
,025,000
,852,600
23,000
9,7.50
13,2,50
2.000
7,000
1,000
42,000
500
19
87}
96
76
92}
91
95*
93
93
9li
90}
95
84
96
75
m
89
93i
90*
'^
90}
95
6,000
2,000
18,000
116.900
123.300
255,700
2.50O
2,000
9,000
500
1,000
20
21
22
23
24
25
26
86
97i
98i
100
99
83
95
93
983
99
19,000
250,350
86,300
238,000
20,000
22
23
24
25
26
27
28
99
99
99
99
99
99
8,000
19,000
22,000
28
29
30
30
31
31
96 95 6,566
90
90
24,000
90"
' 10,566'
83
95
81
81
100
83
100*
100}
100
95
85
69
%
100}
9S
IOO
101*
104}
IOO
102}
90
87
964
81
83
90
81
64
93
774
92
90
92
814
75
33
894
97
92
93
95
94i
93}
93
83
76
95
80
4,000
67,200
11,000
329.400
28,000
32,300
61,000
22.000
29,000
143,600
72,000
761,800
72,900
32,100
145,.10fl
3,134,050
640,450
2,654,7,50
2,912,600
5,292,430
22,000
310,100
12,000
37,000
,32
90
90
7,800
95
33
34
35
69 674 47.300
68
93
77*
93i
64
93
34,500
5,000
2,000
14,000
75
100
823
102
100
67
100
823
Iffi
IOO
261,400
16,300
2,000
2,000
5,000
66
64
12,000
77
90}
89
1034
72
80
82
102*
149.601
33,000
40,600
20,000
76*
90
83
100}
72}
75
69
100
121,100
62.500
14.100
17,000
17,000
24,000
51,680
85,600
,38,500
7,500
48.100
144.000
114,300
133,450
35
36
37
18
83 83 ioO
774
9t
774
92
1,000
5,000
37
38
ioO 991 35,666
93
85
85
60
90
93
81*
83
57
894
2.000
3.500
1.000
45,900
1,300
93
86
76
39
90
98
92}
98
974
98*
97i
%4
84
775
92
85
73
,55
90
97
92
95
95
94}
94
93
84
76
10,000
5,000
6,500
75.600
3.000
3,000
5,100
1.129.050
200.950
774,350
1.047.250
1,765,850
10,500
18,100
83
71
»7
100}
100
1024
83
813
,52
96*
98*
90
33,000
4.500
21.820
98,800
8,000
8,300
47,300
IOO*
87',
85
fA
99
95
994
101}
102}
100
85*
80
57
92*
97*
88*
98
99*
101
40
41
42
43
44
89i 89 7,500
85 84 18.200
65 63 80,900
97 95 2.800
98}
85
66
97
7a
100}
102}
104S
100}
103*
92
86*
88
•85
62*
96
100
94i
98*
1008
103
983
10l3
92
85
32,100
3,000
251,100
4,000
4,000
400
1„507,300
479.700
398.100
893.6,50
1,341.950
500
35.400
41
42
43
44
45
% 95 12,100
lOOl 100 984.250
102} 102 182,300
IO4I 104'i 453.400
lOol lOOi 1,. 592,400
103* 103 2,199,2,50
46
47
48
4a
.SO
5
97
96
953
95i
95
85
80
95}
95
94}
93i
93
85
78
239,400
2,630
124,850
149,100
74,500
3,000
12,200
47
48
49
50
51
84
84
99
84
73*
99
23,000
148,300
.500
52
52
54
S.
5f
89 86 31.000
90
80
180,300
53
54
81
81
4.000
.55
85 "65 1,000
983
96_
2,300
97
90
22,000
56
January 7, 1921
THE MONETARY TIMES
BANKS QUOTED ON MONTREAL STOCK EXCHANGE
Comparative Statement of Prices and Sales during 1919 and 1920
BANKS
i
1919
JANUARY
1920
FEBRUARY
1919
192(
]
1919
.MARCH
1920
High
214
210
Low
201
210
Sales
169
1
High
199
Low
1954
Sales
222
High Low Sales
212 205 136
HiRh
198
Low
191
Sales
' 124
HiRh
206
Low
204
Sales
169
High Low Sales
197 1883 369
1
2
3
-lamilton
1
186
147
186
147
igo " ■
196
'10
267'
10
209
3
14S
147
121
158
1554 <
189 1
148 148 153
1574
1564
108
158 1,554
165
4
5
6
8
9
10
11
12
13
14
mperial
Herchants ..
^lolsons . ...
Montreal
>Jationale
>Jova Scotia ..
5
192
201
2164
272'
2a5
214
181
1793
2i;!i
255
203
2114
33i
68
945
253
63
351
190
190
2084
273
1864
187
■204
27i "
2i3
7.S
518
' iio '
192 190 88
196 195 96
2123 212 587
270 2694 98
208 208 52
2.1 208 562
190
i90i
209
27i
187
190
206
265'
174
105
526
"is? "
1924
199
2123
272
483
84
502
208
189 1874
190 188
218 208
162 J IB'4
270 266
241
33
275
20
208
373
6
7
8
9
10
11
Royal
Standard...
Toronto
Union
2174
214
.S84
2194
217
i92 1
2084
208
418
220 218
12
13
20U
170
193
160
112
108
205 201 51
160 157* 175
157"
Hi"
20 "
200
160i
200
160
IS
14
14
160
160
152
160 155
389
15
1919
APRIL
1920
1919
JIAY
1920
JUNE
1919
1920
1919
JULY
1920
2
3
4
HiRh Low
206 205
Sales
220
High Low
190 IS9
Sales
418
High
20$
Low
201
Sales
191
High
191
Low
1873
Sales
1.108
High Low . Sales
205 202) 281
High
1884
Low
186
Sales
293
High Low
205 202
Sales High Low Sales
376 185, 180 387
1
?.
1
*
■■■: ::"•;:::
■■■;■: : ;
3
1491 148
I.W 1
I.i7 1534
170
1.11
1991
198
221
150
30
1S7
157
62
157 154 3
1584
157
93
160
157
116
157 157
12
4
5
6
7
8
9
in
202} 192J
198 197
225 210
633
81
488
200 185
191 188
220 209
,1019
80
588
187
1974
218
2,094
30
569
2(0
194
217
170
267
189i
189
206
160
265
.564
99
744
39
195
1994 194 1.228
198 193 105
218 215 452
1^
202
180
188
1944
1.525
190
1.195
203
I9S
217
193
192)
214i
824
!)9
380
186 177
188 188
2024 1954
478
32
605
6
7
8
9
269 267
95
270 267j
153
275
2i6
270
S3
277 275 -8
265
261
72
278
275
260
261 253
89
10
11
12
13
14
15
216 208i
200} 200}
162 160
566
231 220
404
212
281
233
227
755
216 213 243
220
210
7i7
2164
216
:«)3
211 209
701
12
13
4
144
193} 1934
1584 1.55
1
.56
14
161
161
157
154
121 1 162 162 75
154
153
12-2 , 162}
162
51
1534 153
281
15
1919
AUGUST
1420
Sales
524
1919
SEPTE
.MBER
1920
OCTOBER
1919
1920
1919
NOVEMBER
1920
1
2
3
4
5
1 6
1 7
1 9
;io.
ill
12
13
14
15
High Low
Wi 1984
Sales
379
High Low
183 177
High
199i
Low
197J
Sales
255
High
177,
Low
1734
Sales
385
High Low Sales
199 197 310
High
177
Low
174
Sales
278
High
1984
Low
196
Sales
141
HiRh Low
190 181
Sales
155
1S8 157
28
iw' 'l.wi'
6
156
156
10
157
15S
164
158 356 201
158
i73j
1 1773
194
174
250
155
68
158
155
75
156 153
30
195 193
193 192i
214 21 iS
449
59
235
180 175
188 180
202 195
584
139
4S7
195
194
213
160
276
193
1934
210
160
271
29:1
316
50
6S
177
181
200
1734
177
189
328
13
598
i9.s i89» ise
192 190 26
211 2074 580
166
174
185
174
244
1,074
140
698
5
124
190
193
209
188
190
207
229
63
539
172 162
174 173
193 187
174 174
255 250
l.ITt
73
6S9
14
134
277 2744
86
254 246
207
249
245
201
1 274 2T2 39
275
273
146
217 213*
1 1; j IS,-. ',
188
212 204
327
215
2124
4^8
2084
202
428
2ISi 215 624
204
I%J
504
2184
2l4i
390
205 1894
633
46
154 1S2
393
IfiO
160
2
153
146
289
163 161 166
145
142
117
160
160
36
145 138
410
1919
DECEMBER
1920
1917
1918
1919
1920
. 1
2
. 3
4
. 5
6
. 7
. 8
. 9
;io
.11
.112
.!l3
Hiiih Lov
108 l%i
2oii aoij
Sales
237
3
Hinh Low
186 182
Sales
354
High
. 188
Low
183
Sales
1.882
High Low Sales
High
214
210
186
160
Low Sales
196 2.864
20l4 4
186 10
147 1.4.9
HiRh
Low Sales
173* 4.617
209
4 202 100
3
lS6i 155
318
1.53 151
I8.5i 1851
166 US
174 169
1954 193
18
5
1 .078
83
.573
. 145
"m
186
234
143
•i574
202
214
201
1912
':i4
140
i67
1794
210
134
248
200
208
201
187
135 !
823
1.402
794
1.563
20
.195
28
1.693
5
93
0.029
; •
.. 1.581 151 1.085
(
198
180
179
... 18,5:
185i 5
1.58 8,451
169 1.062
190 I87i
]sri 187
210 209
221
89
524
1....
167 1,345 ...
203
201
225
160
278
208
2184
181 7.0.59
179J 811
207 6.117
160 .50
255 1.471
203 115
208 5.088
. . 2(W
220 185 7.466
. . 174 16(1 78
... -273 244 1.8,86
148 148 P . .
255 248 598 ... .
203 201 34 . . .
215 208 1.966
K
2734 272
216 3l4i
90
734
1 256 2.50
JM i894
206
886
1
1
1
.233 1894 6,504
Kill ini
123
45
180 1794
1424 1394
15
l:«i
193
161
205
170
193 30.5
1574 863
■■'■'■■f
.. 1934 1794 16
... 160 138 2,586
14
15
SASKATCHEWAN Rl'R.VL TELEPHONE WORK
"The amount of rural telephone construction work," said
Mr. Naismith, superintendent of rural telephones, "accom-
plished during the season of 1920 will probably amount to
about the .same as last year by the time frost puts an end to
operations. At the present time a total of 4,495 new sub-
scribers have been added since the beginning of this season,
and 4,804 pole miles have been inspected. There are, how-
ever, approximately another thousand pole miles under con-
struction, a large proportion of which will, it is hoped, be
completed and inspected before freeze-up.
"One of the chief difficulties in the way of rapid progress
this season," said Mr. Naismith, "has been the unusual dif-
ficulty in selling debentures. Those that have been disposed
of, however, have been placed at good prices, the majority go-
ing at par, with interest at 8 per cent. A surprisingly large
number of the issues have been taken up by local investors,
which is a thoroughly satisfactory state of affairs, and is, in
fact, the ideal way of disposing of the debentures. This dis-
posal of telephone and school debentures in their own districts
was a thing practically unknown up to a very short time ago,
but it is becoming more and more common, and it is to be
hoped that this financing of their own enterprises by the peo-
ple themselves will in time be extensively practiced.
104
THE MONETARY TIMES
Volume 66
TORONTO fSTOCK EXCHANGE
Comparative Statement of Prices and Sales, January-March
1 American Cyanamid Co Com.
2 Ames-Holden-McCready Com
3 " " " Pref.
4 Atlantic SuKar Com.
5 ■' ..Pref.
6 Parcelona ...
'/ BL-IITclcplionu
' Brazilian
' B.C Fishing and Packing Co.
Burt Co., F. N
..New
.Com
.Com.
'■ " ■• Pref.
> Canada Bread Com,
! " " Pref.
> Canada Cement Company Com
> " " " Pref.
' Canada Foundries & Forcings Com.
FEBRUARY
High Low
'28i"''28""
Sales High Low Sales ; High Low Sales ] High Low Sales
1333 1331
110 109
100 74J
m ID
I29J IW
4.iJ 10.824 57* 50
70 1104 106
19 1 IJO 104
High Low Sales
46 40* 10.696 I 553 51 i 6,941
. Pref.
> Canada Life Com.
• Can.ada Steamships Co.. Ltd Com.
' " ....Pref.
■■ VotingTrust
' Canadian Locomotive Com. 633
! ■• " Pref.
I Canadian Car & Foundry Com.
; '■ " '■ Pref.
' Canadian General Electric Com.
i " ■• " Pref.
' Canadian Pacific Railway
) Canadian Salt
' City Dairy Com.
Pref.
I Confederation Life
1 Coniagas Mines. Ltd (15 per share)
; Cons. Mining* Smelting Co.. .825 par.
I Consumers Gas
[ Crow's Nest Pass Coal Co
Crown Reserve ((I per share)
Detroit United
< Dome Mines ($10 par)
1 Dominion Canners Com.
• ■■ ■■ Pref.
' Dominion Iron & Steel Pref.
32J 28i 4,924
240 ! 93i 91
272 I 108 105
213 I 108 105
271 I 31* 28
293 I 86i 86
80 75j
84i 83
lOli
98
139i
76J 70 2.442 443 43i
84 79 2,056 19h 77i
63i 62
91 90
321 32J
88 838
103 J 102
2.75 2.48 1,400
27h 18i 11,111
150i 150 25
32} 28.*
14S| 141
S9J 53
48 42}
U3i 109j
14. .SO 30.75
6li 57J
90
87
95
91j 9U
Steel Corporation Com.' 62i 60
' Dominion Telegraph.
' Duluth Superior
' Howard Smith
783 74
9ii "gi
.Com. j
' Pref.
International Petroleum Co.. ..(85 par) 21.50 19.25
■ Lake Superior Corp I
I Lake of Woods Milling Co ....Com.'
. ■ " " Pref. I
nsolidated . . . . (f 1 per sha
13.50 12.50 630
29 28 13
23^00 2i!75 400
100* lOQj
108 103
lOOj 99
High
334
Low
354
110*
97*
130
!09t
82g
1.'44
7
1093
61
104
,263
8H*
65*
913 90
104i 1014 1,222 I 109 lOJi 1,.174
2.9S
28*
140i
46*
13.25 12.75
2.50 2.50
27} 25i
152 1494
219 142 140
13.25 12.75
395 304
854 82}
680 13.75 12.60
564 I 66 55
326 88} 86i
5.841 ; 6l3 60
73*
69
2..S98
90
90
10
914
91*
31
10 23.00 22.75 110 82.00 47.00
» .Mackay Companies Com.
' " '■ Pref.
I Maple Leaf Milling Com.
' " " Pref.
I Mexican Light & Power Com.
75* - 714
2,600
1.011
1.378
.344 .344
784 '33
313 I 104 102
964 784 733
399 I 74 69
2,005 t 193 169
240 102 99)
7..S85
1.633
2,002
1,350
.534 .48.00 8.259
794 77 1,139
1,7116
142 l3Sf 2,455 180 173
101 99 538 1014 99*
'■ Monarch Knitting. . . .
1 National Steel Car Co!
Pref.
Pref. 80
Com. 7
Pref.* 29
Vot. Trust Com. I 23
1,160
50
Pref.
I Nipissing ($s per share)! 8.85 8.25
I Nova Scotia Steel and Coal Com. 60 60
' Pref. ..•
I Ogilvie Klour Mills Co Com.!
'■ Pref.
I Pacific-Burt Com. I
I " Pref.l
> Penman's Limited Com. I
' " "- Pref.i
' Porto Rico Com.
' " " Pref.
t Prov. Paper Com.
' " " Pref.
I Quebec Railway L. H. & P
! Riordon Pulp* Paper Co Com.
' Pref.j
I Rogers, William A Com, I
> ■' •• Pref.j
) Russell .Motor Car Com. I
' ■■ ■■ " Pref.' 76 70
1 Sawyer Massey Com.t
i '■ " Pref.
) Shredded Wheat Co Com. i 125 125
' " " Pref.l 89 89
1 Spanish River Paper & Pulp Com.! 18* 17*
! " Pref.' 65 63*
1 ;, „ ;; '\ pref. 1914
J ' ,. ., .. Warrant
» Steel Co. of Canada Com. 65 58
' ' " " Pref. 95 934 279
5 Tooke Bros., Ltd Com
I Pref
) Toronto PaperCo
I Toronto Railway i 5S 44 563
2Trethewey (»1 par)! 46j 37 22,200
> Tuckett Tobacco Co.. Com. 244 244 20
! " " " Pref
jTwinCity ^ Com.! 444 39 284
13.75 12.50 1,357
1,963 363 33
n 53
41* 343
12.50 12.00 1,740
41 3»h
85 83
111) 111
22 20}
95* 954
284 273
182} 176*
19 100* 97}
2,197
514 47
574 ,55}
45 35
243
RIGHTS
108 Bell Telephone .
' 67} 63
614 574 1,687
80} 75i
94} 83}
1304 123
8li 76 1.370 ' .65 60*
1004 90 285 94* 931
69 69 25 23* 20
77|
97}
46
424
167
49
46
16.900
.50
50
55
January 7, 1921
THE MONETARY TI.MES
TORONTO STOCK EXCHANGE
Comparative Statement of Prices and Sales, April-June
I American Cyanamid Co Com
> Ames-Holden-McCready Com.
High L,ow
' 28J"'28i "
Sales 'Hif!h Low
Prt-f. 104 104
Sales I High Low
25 [
364 33i
Sales High Low Sales Hirih Low Sales High Low Sale
28i 22
828 75
130 129}
67i 60
I'Atlantic Sugar ....Com
sl ■' ■■ Pref.
3 Rarcclona
1 Bell Telephone
i ' ' ..New
) Brazilian Com. 55 52j 2,428
) B. I.. Fishing and Packing Co ' 488 46j 104
I'Burt Co., P.N Com. 90 89 120
i Pref. 9.5 94j 126
f Canada Bread Com. 22* 19j 1,325
1 " •■ Pref. 83i 829 136
5 Canada Cement Company Com. 67} 64} 1,296
j " •■ •• Pref. I I0I4 984 87
7 Canada Foundries & ForKings Com
) " " ■• Pref
) Canada Life Com
) Canada Steamships Co., Ltd Com. 45 43 951
I '■ ■■ " Pref.: 80} 77J 2,029
I " " " Voting Trust
] Canadian Locomotive Com.
I " '■ Pref.
; Canadian Car & Foundry Com.
; '• ■■ •• Pref.
7 Canadian (leneral Electric Com.
I ■■ ' " Pref.
) Canadi'in Pacific Railway
)Canadian Salt
I City Dairy Com.
I ■■ Pref.
J Confederation Life
I Coniagas Mines, Ltd (SS'per share)
; Cons. Mining & Smelting Co $25 par.
i Consumers (las
; Crow's Nest Pass Coal Co
i Crown Reserve (41 per share)
) Detn>it Inited
) Dome .Miiii-s (tlOpar)
I Dominion Canncrs Com.
J •■ ■ Mr f.
I Dominion Iron* Steel Pref.
I " " " Com.
; Dominion Steel Corporation Com.
i " " ■' Pref.
?i Dominion Telegraph
I Duluth Superior
) Howard Smith Com.
) " " :i Pref-t
I International Pretrolcum Co (♦5 par)
» Lake Superior Corp [
t Lake of Woods Milling Co Com.
1 " " Pref.
» La Rose Consolidated ($1 per share)
; Mackay Companies Com.
t " " Pref.
1 Maple Leaf Milling Com.
) ■■ ■' Pref.
) Mexican Li^^ht & Power Com
^ 106 104}
496 ! 105 104
94} 88
46} 30
100} 894
lol Sl
119} 118
606 1 148 130
484 4li 7.819
68ij Hi 2,000
95| 931 59
485 41} 8,087
9li
954
2j4
59} 57}
54} S3
954 93}
42J 8.131 I 9;
2,803 I 65; 633
694 66i 1,642
65 51}
101 99
las) 104
504 49i
87} 843
846 116 1074
412 1344 125
764 71
92j 89
86 85
.Sl4 47
98 9S
1054 101
974 97
130 1274
250 3.00 3 00
,69« 274 27
259 140 1394
3.12
29}
ISli
3.01 2.75
27} 26J
1404 140
2.S2 2.80
319 28
1514 147i
2.35 2.0O
26 254
1404 135
12.70 11.00 485
16.25 14.10
434 42
9li 90
25 108 107
11,01 10.90
64A 60
85 824
61} 60}
714 66}
80 79
914 9li
2,204 I 72} 63) 2,295
688 64i 6,215 68 59
770 I 47.25 47.25
42.00 42.00
i89 189
31.00 31.00
180} "isoi'
66} 64B
150t 13.59
102] 99}
65i
155
994
294 66g 66
605 169 1484
307 105 102)
7,570 ', 165 156
235 168 164
360 99} 97} 188 ' 107 1044
ch Knitting.
Pref.
.Com.
. Pref.
1 National Steel Car Co Com.
5 •■ '■ " Pref.
i ■■ " " Vot. Trust. ...Com.
J •■ Pref.
) Nipissing (S5per share)
) Nova Scotia Steel and Coal Com.
) Pref.'
I Ogilvic Flour Mills Co. ,,. Com. I
! Pref.
I PaciflcBurt Com.'
I " Pref.
j Penman's Limited Com.
i •■ " Pref.
! Porto Rico Com.
i " " Pref.
) Prov. Paper Com.
) " " Pref.
1 Quebec Railway L. H. & P
2 RiorUon Pulp & PaperCo Com.
J, " '• '■ " Pref.
I Rogers, William A Com.
11.75 10.75 1.525
88
86
59
H
44
SO 1
31
30
247 '
9,567 11.10 10.25
1,430 I 10.60 10.00 1,310
IS [ 122 1214
'25 914 90
65 132} 122
25 I30i 129
'22 21*
1184 116)
1S4 18i
128 120}
125 202 191
i Russell Motor Car Com.
', Pref.
[ Sawyer Massey . . . . Con^ .
834 754
85} 83
944 79
94 85
124 lOi
%4 954
2,908 107} 95j
449 . 1494 134
i Steel Co. of Canada
I "
I Tooke Bros., Ltd.
I
IToronto Paper Co.
1 Toronto Railway
[ Trethewey
Pref.
Com.
Pref.
65} 60i
%4 94
($1 par)
loa Tuckett Tobacco Co Com.
104 " " " Pref.'
105 Twin City Com.
106 Western Canada Flour
107 Winnipeg Electric
RHillT.4
108 Bell Telephone
77
76
40
75
73
90
4S
40
242
.37
28
1,978
90
854
55
464
45
208
98} 96
69 69
89 87}
<w»
1,288
78}'
74}
1,545
734
684
3,654
78
744
788
96
445
97
96
207
984
974
432
95*
29
290
l6l
67
650
40
36
110
74
68
76}
75
39}
64
86}
70
84
84
2
87
87
659
444
424
742
49
39
407
44
4'i
466
m
1,150
3«
34
510
30
28
17,300
33
529
50
47;
265
36
35
55
S3
50
93
717
90}
58
90}
.50
16
163
44
34}
32
572
344
32}
134
38 32S 29}
3i 24 6,04X
THE MONETARY TIMES
Volume 66
TORONTO STOCK EXCHANGE
Comparative Statement of Prices and Sales, July-September
IjAmerican Cyaiiamid Co ..Com.
2tAmes-Holden-McCready Com-
3 •• ■• •■- Picf.
41 Atlantic Sugar .'..Com.
5, ■ •• Pref.
6i Barcelona
(Bell Telephone
8 • New!.
9 Brazilian Com.
10 B.C. Fishing and Packing Co
11 Burt Co., F. N Com.
12 • •• Pref.
13 Canada Bread Com.
14 ■■ ■■ Pref.
15 Canada Cement Company Com.,
16 •■ ■• •■ Pref.i
17 Canada Foundries & Forgings Com. I
18 •• •• ■• Pref.l.
19 Canada Life : Com. I.
20iCanada Steamships Co.. Ltd Com.
21
Sales High Low Sales High Low Sales High Low Sales
IB4 135 3,149 , 50j 45j
10 8|
I19i 1184
195 ' 148 13li 1.717
29 17.5 144 146
635 I 5 4S 255
97 ! I02.V lOlS 205
,.,H
SEPTEMBER
1920
High
Low
Sales
High Low
Sales
109
62
IHj
IIJ
50
984
46
106
9i
1.681
2.56S
7,307
310
2,210
69g Bti
144 125
1384 138i
5 44
5
1,415
5
586
8,189 57} 50|
57 < : 101 101
53 50i 4,493 38} 35
207 I lOOi 97
236 105 103
73i 69i 3,063
25 I IISJ I19J
23
29
Canadian Locomotii
Pref.
Voting Trust
Com.
Pref.
Canadian Car & Foundry Com.
Pref.
Canadian General Electric Com.
Pref.!
Canadian P.icific Railway
Canadian Salt
City Dairy ; Com.
Pref.
33|Confederation Life
SI Coniagas Alines. Ltd ((5 per share)
35 Cons. Mining & Smelting Co $25 par
36 Consumers Gas
37 Crow's Nest Pass Coal Co |
3S Crown Reserve ((I per share);
391 Detroit United I
40 Dome Mines ($10 par)
41 Dominion Canners Com.
Pref.
Iron &• Steel • Pref
Com.
Steel Corporation Com.
«: " " Pref.
47, Dominion Telegraph
48 Duluth Superior
49 Howard Smith Com.
M; " " Pref.
ol International Petroleum Co ...(tSpar)
52i Lake Superior Corp
53;Lake of Woods Milling Co Com.
64} 54
85i 63
102i 100
99 97i
92J 924
36J 344
964 96*
I02j 100
99 98
1384 130
336 103* 98
2., 50
2.50
314
30
151 i
1.50
,50
50
34
34
106
104j
15.00 13.90
57
514
145 I 2.73 2.73
345 136 135
300 136 136
195 ' 12.00 11.00
1024 1024
14.75 13.50
Sl4 44
13.00 11.00
91
300
90
300
110 33
2ni
135
24j
127
,„ 35
234 *
27
22
1,200 38
43 Domii
44;
45|Domii
13.00 12.10
53 46
R3 S'2i
2.427 674 64 2,940 63* 58
28 28
30.25 30.25
164 15
59| 50
85 83
I6i 12
- Pref.
54
.55! La Rose Consolidated.. ($1 per sha.^,
oBiMackay Companies Com.
57| ■• " Pref.
58! Maple Leaf Milling Com.
59, . " •■ Pref.'
60 Mexican Light & Power Com.
61 Pref.l
62 Monarch Knitting Com.
63 •■ ■• Pref.:
6J| National Steel Car Co Com
2 ] 1 161 159
66| 65}
67} 66}
155 155
100 98}
77}
64}
45 107 . 105
651
70 ■•
-l;Ogilv
Pref.l.
Vot. Tru.st Com. .
Pref.
smg ($5 per share)
Scotia Steel and Coal Com.
300 10 00 9.75
Flour Mills Co Com
m Pref.'
/3 PacificBurt Com.
I* " Pref.
7o Penman's Limited Com.
J6 " " Pref.'
7( Porto Rico Com.
78 ■• ■■ Pref.
79 Prov. Paper Com.
■80 •• Pref.
81'tluebec Railway L. H. & P
82 Riordon Pulp & Paper Co Com.
83 •• •• Pref.
84 Rogers, 'William A Com.
85, " •• Pref.
86| Russell Motor Car Com.
87! Pref.
88 Sawyer Massey Com.
891 ■' ■■ Pref.
901 Shredded Wheat Co Com.
9l! •• •• Pref.l
921 Spanish River Paper* Pulp Com.
93| .. -Pref.
Pref. 1914
Pref. 112 112
335 i 10.75 9.30
11.90 10.75 1,783 11.00 10.00
60 i 140} 130
344 34
78J 78
I34S 1264
64 I 33* 334
145 1444
99i 99|
50t 50i
95!
Wa
96iSteel Co. of Canada Com.!
87
83
71
90
85
105
22
20
635
62}
50
248
4.5}
40
4,148
109
103
664
79i 7«
44| 44
1334 1334
20 , 1334 130}
585 118 101
(iTooke Bros,. Ltd Co
Pref.
100 Toronto Paper Co
101 Toronto Railway
102 Trethewey (Jl par)
103lTuckett Tobacco Co Com.
1041 " •• •• Pref.
l05iTwin City Com.
106 Western Canada Flour
107' Winnipeg Electric
RIGHTS
108] Bell Telepho
424
40
135
29
29
237
50
48S
55
27}
49}
1.193 504 504
22 1 115 114
157 404 37
1,767
8
1,105
69i 67 J 1,759
January 7, 1921
THE MONETARY TIMES
TORONTO STOCK EXCHAISGE
Comparative Statement of Prices and Sales, October-December
OCTOBEU
DECEMBER
I, American Cyanamid Co Con-..
2 Ames-Holden-McCready Com.
3 •■ " " Pref.
4 Atlantic Sugar. Com.
5 •■ •■ Pref.
6 Barcelona
7 Bell Telephone
Hiuh Low Sales < High Low Sales ; High Low Sales Hieh Low Sales ' High Low Sales High Low Sales
102 J 87
llSi 107}
79 631
120i 114
10 8J
118 1171
5Si
125i
.Ne
lU3i 101
9,179
1,866
72i 69i
122 118i
8 53
117} llSi
9] Brazilian Com.
10 B.C. Fishing and Packing Co
11 Burt Co., F.N Com.
12i " " Pref.
13 Canada Bread Com.
U " " Pref.
15;Canada Cement Company Com-
101 •■ " ■' Pref.
17 Canada Foundries & Forgings Com.
18 " " ■' Pref.
19 Canada Life Com.
) Canada Steamships Co., Ltd.
Il2i mo'
UOJ 99
38}
4.iS
991
244
126 107 105
52 1068 1 0.11
32}
87
73?
179 90i 8S4
21
Voting Trus
23'Canadian Locomotive Com.
24; ■' " Pref.
25 Canadian Car & Foundry Com.
26 •• Pref.
27 Canadian General Electric Com.
28 " " •• Pref.
29 Canadian Pacific Railway
30 Canadian Salt
31 City Dairy Com.
32 " Pref.
33 Confederation Life
^M Coniagas Mines, Ltd (tS per share)
ViCons. Minings Smelting Co »«par,
36 Consumers Oas
.37 Crow-s Nest Pass Coal Co
38 Crown Reserve (|l per share)
39 Detroit United
40 Dome Mines (810 par)
41 Dominion Canners Com-
42: " " Pref.
43! Dominion Iron & Steel Pref.
44, " " " Com.
45 Dominion Steel Corporation Com.
48| ■' " ■' Pref.
47I Dominion Telegraph
48!Duluth Superior
49 Howard Smith C(
50 ■• ■•
51 International Prctoleum Co.
52 Lake Superior Corp
53'LaUe of Woods Milling Co. .
Pref. 87i 834
.S89 73i 69
105 J 93
974 93
514 49
lOOi 99}
1131 111
96 94}
534 48
994 96
47 994 994
607 694 49*
86
28 28
54}
9l|
9» 911
96 92
140} 132
733 109 103
87J
%
95J
79
90:1
90
131i
SOS ' .soi'
85 85
137
■1, 85
2. 85
324
304
145
138
51
494
374
;i7i
109*
106
15 (K
14.25
64
52}
190 2.76 2.75
882 , 24} 20 457 | 30 29
716 133 125 298 152 14Bi
429 136 131
1.2;»5 2.00 1.75
180 18 16
225 , 136 13l»
900 12.60 12.00
60 112 112
454 36 11,175
660 14.10 12.75
Ml 15i
Sli 814
13.25 11.50
32 271
73} 68
90i 90
.Pref
.(SSpar
36 32}
8S 781
931 91
. .Com
. . Pref
55 La Rose Consolidated (Si per share) 39 37
56 Macltay Companies Com. 80} 794
57 •• " Pref. 66* 66
58' Maple Leaf Milling Com. 209 195
59 ■' " Pref. 106 103
60 Mexican Light & Power Com
61 ■• •■ Pref
62' Monarch Knitting Com-
63 " ■• Pref. 90 88
64 National Steel Car Co Com., 11 5
60 Pref.; 45 33
66 .Vot.Trust....Com. 9 9
67| ■' ...Pref.i
eSJNipissing (115 per share)] 12.00 11.48
691 Nova Scotia Steel and Coal Com.
70 Pref.
71 Ogilvie Flour Mills Co Com.
72 Pref.|
73 Pacific-Burl Com.
711 ■ Pref.
75 Penman's Limited Com.
76 •• •• Pref.,
77 Porto Rico Com. 24 J 24j
78 Pref.
79 Prov. Paper ...Com.i 83 65
80 •• •• Pref.;
81 Quebec Railway L. H. & P
82 Riordon Pulp & Paper Co Com.
83 ■• •■ " •• Pref.-
84 Rogers. William A. . Com.
So •• " Pref.
96 Russell .Motor Car ..Com-
87 ,,Pref.
88 Sawyer Massey. . . Com.
89 •' " Pref.
90 Shredded WhealCo Com.
»1| ■• " - Pref.
92 Spanish River Paper* Pulp Com.
93 Pref.l
94 Pref. 1914
95 Warr.ant
96 Steel Co- of Canada Com.
97 •' •■ " Pref.
98 Tookc Bros., Ltd Com.
99 Pref.
100 Toronto Paper Co
101 Toronto Railway
102 Trcthewey ($1 par)
103 Tuckett Tobacco Co Com.
104 ■ " Pref.
lOSTwin City Com.
106 Western panada Flour
l.l.SO
1.236
1.117
1064 1061
1.882 I 146 138 288 206 193
190 •• 971 93} 142 104 lOll
888 138 133
472 691 651
337 205 196
177 1041 1021
165 I 138 134
22i
1,110 1 9.75 9.40 330 14 20 13 15 1.655
lOII
30{
^78
100 971
sol 304
1061 105
91 91
23} 23
24i 221
I50i 147
165 .53} 53
301 26
184? I6ft
99i 9!)i
2.770 1161 954
111 122 100
41} 40
32 J 29}
5 I 1321 1321
48 4li
107 Winnipeg Electr
RKillTS
106 Bell Telephon
464 45
14,5} 145
40 37}
lOfl 115 113
901 901
46 37
174} 148
231
451
84}
9^
1,500 36
46
39
2,.5.52
65
65
?1
81
80
in
83
i;U
83
i:U
139a
10
600
90} 90}
29 27?
140
600
81
144
80
i:t
in
350
,^
62.00 62.00
in
139S
51 45
79 731
S.0.50
1.071
26
70}
25
68
2.000
7«4
63i
734
511
8.40 1,180 68
THE MONETARY TIMES
BONDS QUOTED ON TORONTO STOCK EXCHANGE
Comparative Statement of Prices and Sales during 1919 and 1920
BONUS
1919 JANUARY
1920
1919 FEBRUARY 1920
1919 MARCH
1920
1
High Low
Sales
High LOW
Sales
High Low Sales
High Low Sales
High Low Sales
High Low Sales
1
•>
95
93
$27,500
92}
91}
88,100
944 94 $6,500
94 94 $7,000
94
94 8500
n
<l
Canada Cement
Canadian Lo<;oniotiv<
Canada Steamships.
C.P.R. Notes
Dominion of Canada >
Dom. of Canada Victc
3
i
914
90
19,000
94
93
10.200
92J 92 5,766
93 93 81,000
934 93* 10,500
80 80 200
93
93 5,500
i
S
fi
::::::::::.::::::■;:::
fi
8
9
10
11
12
13
U
IS
VarLoan 1925
" 1931
" 1937
ry War Loan, . 1922
.1927
" .1937
•■ ..1923
■• ..1933
97
97
98;
100 J
1011
103g
lOlJ
102
959 51,400
95} 64,300
96* 353,400
98| 689,600
903 170,M)0
lOO.i 423,900
99i 1,002.050
100 1,123,200
984
993
lOil
1014
104}
100
102^
95
89
9SJ 439.000
95 31,1(10
98 247 000
98} 1,165,600
98 172,550
1023 1,128,850
98} 89.i.750
101.! 2,649,300
94 2,500
92 2.500
404 3.000
89 1,000
98 964 72,466
963 96 64,100
98J 97 261,300
100} 99| 646,050
101.1 lOOi 150,600
103« 102 522,900
100} 99| 493,800
1024 99| 1,983,100
96 95 170,000
96 944 87,100
100} 983 452,900
100 98} 336,650
1014 101} 54,050
104} 1003 258, liO
100 98} 294,700
102} 993 600,150
944 944 1,00c
934 93 1,500
99* 97 67,600
99} % 75.600
lOol 97} 687,600
1003 100 515,500
103} 101 90,550
1064 1033 643,850
1065 too 1,268,150
1045 1024 4,116,050
95}
95
too
993
1001
1023
994
101}
94} 192,300
944 139,400
97} 572,800
98* 95,450
99} 25.400
1003 775,4.50
983 15,600
994 392,250
7
8
9
10
11
12
13
14
15
Electrical Develonme
Mexican Lifiht & Pow
87
87
1,000
92 91 61,000
16
• n
er
n
90 894 6,500
18
19
19
?n
Quebec Railway, Light and
Rio de Janeiro Tram. Light
64
754
76
64
74
76
S.OOO
36,800
1,500
65 64 4,000
?0
•'1
75 71 11500
78 75 22.000
75
79
69 27,800
7b 45,000
VI
•>?
n
■^
85i^
94?
854
94
1,500
1.500
n
24
Steel Co. of Canada..
96j
%
7,500
96 94 7,000
98 98 2,000
973
963 4,006
24
1919 APRIL
1920
1919 MAY
1920
1919 JUNE 1920
1919 JULY
1920
,
High Low Sales
High Low Sales
High Low
Sales
High
Low
Sales
High Low Sales
High Low Sales
High Low Sales
High
Low Sales
1
■>
94i 93) $9,800
954
94}
87,500
933
933
#500
94} 94 $2,500
904 90 81,900
92 92 16,800
91 90 9,000
89
87 86,500
9.
3
3
94i 93 6,I0O
94
94
8,000
95 943 6,000
s
f>
li
C
7
8
9
10
994 971 112,800
99* 98 132,600
lOOi 98i 210.500
lOOj 99i 617,850
I03i 102 81,650
I06i 1043 322,3.1(1
lOo! lOOi 634,450
IU4i 104J 1,365,000
95
94
98t
94 881.600
91 1 16,(100
944 268.200
99i
998
100
100
102
106
lOOj
1043
95
97} 184,700
973 43,500
99 136.600
lOOj 520,050
IO1I 46,100
105} 385,250
100} 628,100
104} 1,816,900
934 6,500
95
93
95J
94
91
94
101,300
122.000
267,900
100| 984 147,200
lOOl 98 31,300
102 994 349,700
101 1004 713,150
104 1024 181,100
107 106 752,450
102 1004 874,600
1061 1044 2,.522,900
964 95 9,000
92 914 6,000
40 40 500
93 93 4,000
95} 94} 135,000
94J 92 209,800
97-S 9.53 218,800
100 964 128,200
101* 98 31,900
101} 99 141.700
lOli 993 643,9.iO
103s 100 280,4.50
943
924
963
94 47,400
90 129,200
95* 150,S0O
7
8
9
10
P
I'
1013 993 1.194,250
105} 1024 1,912,750
95} 9,5} 5,500
91 91 4,000
13
14
92 92 566
14
l.l
914
914
4,000
15
lA
95 92 4,000
16
17
32
88
32
88
2,000
2.500
18
894
894 1,500
92
92
1,000
89 88 9,000
18
19
80 80 500
82 82 2,000
?0
613
73
79
61f 1,500
69 4..500
78 12,500
63} 63} 1,000
73 604 56.700
77 77 3.000
63
73
63 1 ,000
72 6,000
in
?l
73
784
S9
67
764
89
18,000
15.000
11,000
?1
80 80 500
?3
164} i66i 3.560
994 994 500
24
99i »8 24,66b
97J
97} 4,566
993
994
5.500
994 994 1.066
% 953 2.000
953
954 9 000
24
1919 AUGUST
1920
1919 SEPTEMBER 1920
1919 OCTOBER 1920
1919 NOVEMBER 1920
1
High Low Sales
Higli
Low .Sales
High
90
95
Low
90
94
Sales
»2,000
6,500
High
"87
Low
Sales
High Low Sales
High Low bales
High Low Sailea
High Low Sales
1
">.
94 93h »6,100
87
87 $500
86
$24,666
94 '94 83,000
86 85} 5.200
854
84 7,000
9,
1
994 994 $5,000
94 94 2,000
<t
4
95
95
5,000
4
S
5
6
6
8
9
98 96 30,400
99 974 47,000
lOlJ 981 64,100
lOol 99J 483.600
1024 100} 102,150
lD6i 104i 322,350
101 993 462,900
105J 102* 1,142,850
95 95 500
91 91 1,500
94}
92
96S
93i 74,100
90* 81.200
95 194,600
98
99
lOOg
losl
104i
97
984
lOOj
100
101*
1035
100
1034
67,900
22,600
126,400
793,400
179,950
973,000
,093,650
,812,900
933
92
94}
914
86,200
70,900
192,400
97i 973 68,800
98| 98} 229,400
lOol lOOi 238,500
100} 100 703.350
1021 IO2J 142,000
1043 104S 530.400
100* 100 747,350
lOSi 10312,089,150
92 j 92J 103.806 97J 973 244.000
903 88} 133,800 983 98K 265,200
934 91 196,000 100} 98} 524.30O
928
90|
95
964
98
944
95
943
92
88
9l4 66,600
89} 184,200
93i 254.700
954 169,050
94 5 800
93i ,36,250
94 110,300
93 219,000
90 5,500
874 1 ,000
7
8
9
II
102} 102i 22'),500
1043 104} 748.150
100} lOOj 1.309,550
1038 103} 2,602,300
11
13
13
IS
92
87i
92 5,000
87} 1.000
92
91
5,500
IS
IR
91
90
20.500
84 84 7,000
91 91 9,000
16
17
17
18
89}
89} 1,000
89
89
500
913 91} 200
874 87 1,500
18
19
82
82
1,000
19
65 65 1,000
'O
74
63i 23,500
80
78
12,000
73
75
65
72
67.000
22,500
76 75 4,600
80 80 2,000
724 70 27.500
734 72 69.000
76 704 85,300
76 76 1.000
734
73
724 16,500
70 48„500
?'
2?
?3
?3
24
95?
954 2,500
100
96
1,800
97 97 1,666
944 94i 3 000
94
93 4,100
24
1919 DECEMBER 1920
1917
1918
1919
1920
1
High Low Sales
High Low Hales
High
Low Sales
High Low Sales
High Low Sa
les
1 High Low
Sales
5
94 94 »5,000
99 99 4,000
934 934 1.000
83 i
90J
834 81.000
90J 1,000
94
90 $74,000
00
00
00
00
94 834
i 92 9(^
$57,200
17,800
25,700
J
4
95
93 2,800
86 4,100 ....|
95 90 7I.S
S
5
a
..;.: .:::.;:;;::::;■;: : i m"™ inn :...i
•i
97| 954 177,400
98| 954 166,100
995 98J 250,500
1001 98J 948,200
102S lOOJ 288,000
1043 102} 864,700
100} 98i 1.212,700
1031 lOli 2,795,350
'91* " 91* " l',666'
921
91
95
98
%
984
974
%?
89
893 108,100
89 51,200
934 346,000
% 1,784.150
94i 204,250
94i 1.071,400
94t 1.165.100
93} 2,493.050
88 3,500
98}
98}
96
94g 938 900
91 1.479 400
9li 2,268,310
KK)
00
.00
968 892
,605,400
,355,900
,362.100
),550.900
462.0.SO . .
.,270.100
,479,450
>,353,750
27,500
13.000
5,000
23.500
7
8
98? 89
.. ' 100} 90}
.10(1 954
,,:... 1014 94
9
in
91} 1,730,150 ....!
98} 167.350 ....;
992 24.950 ...
102 %4 3.344. f
9
11
. .101
1045 99} 1.942.6,50
11
I-
50
i50
50
]•'
1 "
94
93
14
\
102?
14
1^
1
95 88
931 84
. . 404 32
,90 87
92i
30
96
82
89} 2,000
30 9.000
87 2.500
82 8,000
84} 19.500 ... I
17
89 89 1.500
DO
00
KK)
.00
«0
KK)
00
11
. 80
. 593
. 83.
80
.82
94
19
76' '7S 21,766'
564
74
704
56i 1,000
734 13,000
60} 21,000
. . 64 564
754 604
79 693
9,.«00
308,800
260.000
11.000
39,600 ....
tn
?l
86}
84
80 40,300
80 704 123 f
?i
n
■>?
5.400
89
91
24
9i
91 3,000
994
90 2.
88 32,600 ....
100 94 44,.
1 973
24
January 7, 1921
THE MONETARY TIMES
LOAN & TRUST COS. quoteu on TORONTO STOCK EXCHAiNGE
Comparative Statement of Prices and Sales during 1919 and 1920
COMPANIES
1919
JANUARY
1920
1919
FEBRUARY
1920
1919
MARCH
1920
I
HiKh
Canada Landed & National Invest 148
Canada Permanent Mort Corporation 170
Low
148
167
Sales
I
743
High
140
171
Low
137j
167
Sales
112
833
HiKh
149
172
Low
149
169
Sales
26
1,930
Hieh
isoi
175*
Low
150
171
Sales
12
573
High
Low
Sales
Hieh
150
178
Low
148i
175
Sales
77
1,005
2
3
172
169
cii
2
4
■' 20% paid
Colonial Investment & Loan
;:;;;::;:::::::'"
5
6
81
81
930
81
74
241
81
81
532
73
69
471
81
80
348
70
68
368
5
7
R
20% paid
Huron and Erie MortSagc Corp
20% paid
New
9
204
200
24
112
112
11
210
201
196
196
475
66
112?
112
18
II
198
195
101
10
1
•!.
142
121
209
142
121
209
15
16
39
1^
l3
3
120
120
2
127
127
20
123
I22i
20
126
126
10
4
S
160
155
41
15
16
17
18
A
20%paid
Real Estate Loan
7
95
210
132
99
210
I29i
6
58
20
95
211
95
211
9
5
8
210
134
210
134
8
10
S
134
134
se
134
134
22
1919
APRIL
1920
1919
MAY
1920
1919
JUNE
1920
1919
JULY
1920
High
148
171
Low
148
170
Sales
9
165
High
149
177
Low
1424
l7Si
Sales
28
2.112
High
Low
Sales!
High
1424
176
Low
I42J
174
Sales
10
4.816
High
Low
Sales
High
■42
174
Low
1391
170
Sales
52
365
High
Low
Sales
High
140
170
Low
138
159
Sales
24
1,005
1
174i
1734
513
176
1724
856
175
1724
757
2
1
79
75
79
75
las
10
70
67
231
70
70
100
70
72
68
72
283
10
70
67
654
68
67
88
72
75
70
75
396
20
67S
67
395
5
6
146
146
9
7
121
121
16
8
Il3i
Il3i
4
218
100
218
too
109
142
8
25
SO
7
il3i
103
113
103
21
56
U2
112
ISO
9
10
112
142
118
112
141
118
5
31
' 12
114
114
14
11
142
1221
230
142
1V!24
220
20
13
52
I?
I2S
123
189
126
120
21
120
120
8
121
200
121
200
71
5
13
200
160
200
160
4
24
14
160
160
\i
IS
IR
. ... .......... ....|.. ............ ........
95
206
135
92
206
134
28
153
100
220
133
100
215
133
12
11
25
17
2071
207i
132
12
7
206
134i
206
134i
1920
9
20
207i
207i
18
206
2024
86
200
200
10
18
135
135
10
19
1919
AUG
u ;t
1919
SEPTE
MBE
1920
1919
OCTOBER
1920
High
140
170
1919
NOVEMBER
1920
High
Low
Sales
High
140
160i
Low
140
157
Sales
4
1643
High
143
174t
Low
140
I70i
Sales
11
760
HiKh
I40i
Ibl
Low
138A
160
Sales
12
524
High
140
171i
Low
138
164i
Sales
50
466
High
Low
Sales
Low
140
168
Sales
20
598
HiKh
132
166
Low
131
160
Sales
35
1,071
1
175
I74i
348
163i
162
346
2
3
.....................
......................
.....................
■::::::::::::;:::;:
::;;•;::::::::;::;::■
78'
:::::.:;;;:;;;:.;:.;:;
4
75
70
1,026
74
67
499
7SJ
7S
565
82
74
274
74
74
67
78
18
78
70
697
77
77
32
5
6
145
145
23
146
125
68
US
120
110
145
120
110
6
S
4
145
145
9
7
8
112
112
12
:;•
114
114
1124
1124
93
9
100
114
140
120
205
157
100
114
140
120
205
157
14
10
77
20
5
19
::::■;::
10
112
112
4
....................
II
141
141
13
1?
121
200
120
200
28
20
121
200
155
120
200
155
14
98
2
120
205
160
120
205
160
10
28
9
119
119
29
US
110
48
I!l
'::::;::.:.:;;;;:.::
14
155
155
1
1.57
148
157
148
2
18
IS
16
.....................
98
2l7i
131
98
215
131
8
18
21
92
92
1
17
218
218
5
200
134
200
134
18
14
220
131
218
131
35
66
206
204
"
212
131
210
131
59
2
200
132*
1964
132
25
21 ■
18
132
132
22
19
{High Low Sales High Low Sales
High Low
. 160 150
. 173 1624
Sales High Low
330 1481 140
4,774 • 169 1624
1124 1124
15 160 160
18 211 207
I30i 1301
115 1 133 133
19 ... 121 121
237 204 202
332 190 190
1281
2071
185 1264 1264
High Low Sales
57 146 145
12 i 121 120
519 1131 110
206 103 103
247 1 204 199J
The close of the 1920 whaling season has brought the
return of the whalers of the British Columbia coast to port
with a satisfactory catch. While an official report is not yet
available it is expected that about 500 whales will have been
accounted for in British Columbia waters. In 1918 the catch
was 500, and in 1919, 423. The whalers will now lie at their
berths at Point Ellice bridge in Victoria until the opening of
the season next spring.
THE MONETARY TIMES
Volume 66
BANKS QUOTED ON TORONTO STOCK EXCHANGE
Comparative Statement of Prices and Sales during 1919 and 1920
BANKS
1199
JANUARY
1920
1919 FEBRUARY 1920
1919 MARCH
1920
High Low
Sales
High Low
Sales
High Low
Sales
High Low
Sales
High Low
Sales
High
1
Low Sales j
1
215
205
273
199}
196
457
205 205
177
198
I9li
' 153
205
204
144
196
190*
242
'/
nion
219
201
179
205
2021
227
215 214}
45
204*
203
119
?14*
208
129
206
201*
482
2
3
Ham
ton -
209
200
228
194
191
106
205 183*
421
194
190
115
186*
183*
4B7
192
1891
182
3
4
Impe
iai
210
203
l.so
200
196
163
207 206
64
197
194
148
206
203
67
195
190
400
4
.-i
Mcrchnnts. .
181
180
33
190
187
150
190i 19(1}
20
189
187
62
192*
189
233
190
189
20
t>
«
Molsi
ns
180^
180}
5
187
187
87
190
190
9
188
186
59
Mont
•cal
216}
216}
15
207
206
72
213g 212
15
207
206:i
34
212*
212*
5
218
215
47
7
8
NOVM
Scotia
270
257}
48
271
270
93
271
■m
58
269*
266
73
270
266
2
q
Otta\
Roy.-)
■a . . .
206
214
203
212
238 1
163
208 208
212 205
4
106
2081
H
10
217
215.
85
218
217
84
207
80
219
217
l04
10
11
Stanc
ard
215
•■09}
114 1
21 li
209
102
212 209
177
214?
210}
134
211
209
127
■m
217
186
11
Toron
to.
203
193
260
197
195
243
204} 201
362
196*
195
61
201
21K)1
233
195
194
lii
Unior
171
159
103
161
160
63
160} 158
276
160
156
272
160
159*
16
158}
156
172
13
Hieh
1919
APRIL
1920
1919 MAY
1920
1919
JUNK
1920
1919 JULY
1920
Low
Sales
High Low
Sales
Hi^h
Low
Sales
High Low
Sales
High Low
Sales
High Low
Sales
High Low
Sales
High Low Sales
1
205
204*
198
192
190
257
205
2u1
295
191
185
.587
205 203
157
1K9
186
101
2(15
•'03
205
185*
183
265
2
208*
207i
360
202
199
269
208
206
,532
200
199
146
207} 201
921
202*
196}
304
205
2(14
188
198*
195
103
2
3
186i
185
496
190
189
101
1855
182
669
19i*
187
520
184 183
'!68
192}
186,!
417
186
183*
378
187
170
.562
4
205
1983
363
195
189}
244
1981
197
4.56
195
189*
347
200 198
197
195
192}
118
2(K)
196
317
195
190
130
1
5
202*
192?
250
190
187
82
199
I85J
133
2023
194*
186
198 197
38
188}
183
75
198
193
56
182
179
38
:>
K
197
197
U
7
215
214}
6
2?n*
215
27
218
218
10
217
205
51
217 216
102
202
195
102
217*
215
26
201*
200
15
7
a
q
268
267
63
270
270
1
275
270
83
267
265}
10
276 273
28
265
263
45
277
275
75
2B2
260j
41
8
9
10
215
208}
268
22.5
219
179
216
212
153
233}
226|
306
216 214
72
216
2113
104
216
215
189
210*
208
131
Ifl
1
209J
204g
463
217*
211*
260
212
204}
63
216
214
176
214} 213
68
216
214
51
217
215
45
215
210*
96
12
201
200
157
194
193
206
200*
197*
61
1923
186
86
200 199}
103
190
189
150
199S
198
119
190
188
24
12
13
161
160
74
158
157
36
160
160
4
156}
153*
81
161 160
16
1.55
153*
96
163
161
60
154
153*
114
1919
AUGUST
1920
1918 SEPTE
MBE
R 1919
1919
OCTOBER
1920
1919 NOVEMBER 1920
High Low
Pales
Hi eh
Low
Sales
HiRh
Low
Sales
High Low
Sales
High Low
Sales
High Low
Sales
H;gh Lo«
Sales
High
Low
Sales
20iS
198}
217
184*
177
256
199*
198
134
177
174
375
198i 197
205| 202
336
178
173*
209
2005
197
403
187
183
165
2
205
204
62
198
195
242
206
202
247
198
193i
287
242
195}
192
221
206
204
552
194
190
116
3
192
188
136
184
177
266
188
:87
131
178
176
283
196 1895
322
177
176
182
195*
191
140
177
169
104
3
4
200
198
59
192*
190
275
200
198
171
191
189
104
20O 197
204
191
188
124
199
197
375
186
184
132
6
194
194
29
180
177
86
195
194
16
175
175
10
194 191
28
175
166*
mo
189
188
10
172
164*
32
o
K
183
180i
11
173
192|
246}
173
5
193
191
207j
273
12
h
2001
248
7
8
277
276i
22
252
248
204
276
276
2
245
88
272 271
18
245
186
274
61
8
q
»
10
216
215
7
211
204
23
21.5*
213*
426
207
205
81
2151 214
1,30
204
197
99
VI 6*
213
66
205
191
107
10
u
21. S*
215
107
210
210
63
215}
215
122
211
209
81
215 2tl|
182
210*
209*
68
211|
21(
99
210
207
89
11
12
I99(
196
96
185
182
30
197
195
122
182
181
70
197 J 197
67
182
182
14
196
19.5,
76
183}
■179
17
13
162i
High
160
59
155
153}
281
164
161
42
153
147
36
164 162i
108
147
142
329
164
159
111
143}
139
,521
13
1919
DECEMBER 1920
1917
. 1918
1919
1920
IjOW
Sales
High
Low
sales
High Low s
iaies
High Low Sales
HiRh Low Sales
High Low
sales
19SS
205i
192V
198
190
192
209J
273
195
201
188
196
187i
190
208(
273
231
282
142
240
K1
11
40
39
187
199
171
188
147
181
190
168
184*
159
306
202
2.50
65
43
:;'.■;
188
212}
192
200}
169
184
234
257
202
214
215
192
142
182}
202
184
185
167
180
220
252
202
202
200
184i
136
.837
971
459
.370
22
53
IS
98
.50
308
898
187
735
.183i
i 199
i 184
* 185 1
167
976
666
272
296
153
215
219
209
210
202}
197
218
277
208
217
218
204*
171
195 2.770 .
201 3.739 .
182 3,798 .
196 2.663 .
180 907 .
1801 35 .
207i 404 .
257} 517 .
203 242 .
205 1 .836 .
204} 1.632 .
193 1.823 .
158 977
199'
181
190
168
184
159
173
185
245
2,718
3.088
2,250
884
181
509
741
9
206
*>
?
194
»
4
202
200
202i
4
A
fi
190
«
',
196
251*
194}
2.i0
18
13
210
248
201
205
5 200
184*
137
123
340
142
267
590
178
920
2204
7
f
... 248
271
8-
«
9
in
217
210
1 96 J
162
2\4h
209}
194}
158
176
65
167
108
194*
212
182
141
192
200
■179
1391
270
490
49
153
;;::;
233
191
20O
179
139
1 ,.573
1.696
1.029
2,154
1(1
11
222
11
1?
197
12
t;
IS
ADDITIONAL AND NEW COMPANIES LISTED ON TORONTO STOCK EXCHANGE
STOCKS
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
1
Abitibi Listed Sept. 1920. Com.
High Low Sales
High Low Sales
High Low Sales
High Low Sales
High Low Sales
High Low Sales
2
Pref
3
62 62 SO
62 62 00
4
5
6
Dominion Coal Pref.
94} 94} 5
88} 88* 10
85* 85} 5
7
8
'
Standard Chemical Com.
38 38 25
1(1
Pref.
BnlKis
Bell Telephone
36 36 15
11
12
Dominion of Canada Victory War Loan . .1924
1934
13
^
14
91 91 $2,000
15
Rio de Janeiro Tram. Light & Power. $100
16
17
Sterlinc Coal .
Rights
Canadian General Electric
80 80 $2,500
80 80 $1,600
80 80 83,000
18
19
32 31 43
20
National Trust
12 00 7.00 1 100
21
1 1
9 9 230
9 7J 61
22
' ■
;;::::;;::;:::;:;;:;;:r;::::;;;;:::::: .. ..•
January 7, 1921
THE MONETARY TIMES
ADDITIONAL AND NEW COMPANIES LISTED ON TORONTO STOCK EXCHANGE— Continued
STOCKS
.JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
1920
High Low
Sales
High Low
Sales
High Low
78g 76i
Sales
255
High Low
794 67
Sales
1.125
High Low
674 544
Sales
2.435
High Low Sales
574 494 2,517
High
794
Low
494
Sales
6.33:i
■> •■ Pref.
&5 65
35 34
82 78*
15
> 50
91
65
35
82
944
380
27
38
36
904
95|
93*
91
65
92*
85
50
32
12.00
9
6
62
6
70
85*
310
25
38
28
90J
92
89
91
62
92J
80
IS
31
7.00
1
115
362
4 Am.S.Bk.Jy. 1920.Com.
5 ' " Pref.
30
82
2S
82
161
6
30
83j
SO
78
94
87
30 30
78 74
4
123
7J 6
744 Tl
49
194
74 74 4
72 70 82
380 315
264 264
45
50
320 310 42
8 Port Hope SanitaryCom.
25
25
25
27 26*
175
10 " " Pref.
34 324
s
35
28 28
10
60
$4,000
791 .700
1.766.950
ICoiKiS
90}
904
t3.()0<l
oc.J MOl
Si. 000
95J 92
92 89
S41.450
453.950
9SJ 93 8750.250
934 90j 3,313,000
■
15 RfodeJan T. L. &P.$100
65 65
<l,000
628 62
92i 921
3.800
1„500
63 62 6,700
..:;; ;.;...;:.::.;:;;
80
80
85.000
85 85 2,o66
14.100
UlKllIK
li i
1.050
i J 576
ADDITIONAL AND NEW COMPANIES LISTED ON MONTREAL STOCK EXCHANGE
STOCKS
JA.N'UARV
FEBRUARY
MARCH
APRIL
MAY
JUNE
New
High Low
Sales
High Low
Sales
High Low
Sales
High Low
Sales
High Low
71 63
Sales
23,113
High Low
841 703
Sales
55.212
Pref.
Pref.
464
90
46
88
1,135
661
45
90
443
90
80
SO
Carriage Factories
88
20
113
81
691
91
79i
20
106
81
63
90
2.279
100
9.163
6
4„533
175
904
84
682
108
801
64
9U
103
in
60
90
3,688
439
1,065
25
113
80
67
89
100
70
83
1034
77
604
87
1(10
65
80j
6,061
1,256
1,863
30
10
252
183
113
80
68
874
103
78
60
861
6,439
779
2,418
125
106
784
654
87
103
78
60J
84
2,625
801
1.110
233
106
781
64
854
103
77
60
84
2.344
514
700
310
Dominion Steel Corporation....
Dominion Gl^^ss
Pref.
Com.
Pref.
Pref.
Com
Pref.
Com.
Holt Renfrew
70
85
61
85
308
210
66
84
62
84
68
3
70
70
11
81
81
20
801
14
90
IIOJ
674
80i
14
86
105
54
2:«i
32.76-'
75,2.92
85
90
54
83*
82
49i
170
7,135
25.090
90
98
533
834
84
49
330
21.134
34,110
89
lOOi
521
88
30
13.935
8.691
'SJt
93
49
11,464
14.041
Com.
Porto Rico
..New Stock
**
4li
6.199
42
33}
4,476
37)
334
2,291,
33i
29i
1.395
29i
25
315
36
26i
380
Itolllls
*V%
88
85
$3,000
88
85
84.000
90
894
814.000
83
95i
83
954
1 1.000
7.500
84
84
81.000
Pcirto Rico
rt
73J
72
724
6.000
6.000
Km de Janeiro
72
974
72
97*
1.600
5,500
i;i
96
95
22.000
93i
93
i.666
Victory Loan. 1924.
■■ 1934
RlKhtH
25
38"
to
1.793
'V.S67
'"-
Lake of Woods
91
Riordon
lU
9
5.778
64
2,894
:::;!;:;;..;;::;;;::. :i:;::;::;:;;;:;::::
High Low
87 75
744 70
684
74i
Abitibi New
Brompton....New Stock
Can. lron& Foun...Pref.
Carriage Factories. Pref.
Calgary Power
Detroit United
Dom. Steel Cor.. . . Pref.
Dominion Glass . .Com.
...Pref.
(touM Man. Co Com.
Holt Renfrew Com.
Pref.
Illinois Traction. ..Com.
Kaministiciua Power....' 92* 92!
LaurcntideCo. . N.Stk. 125 106i
N. Brew. 325 Par..Com. 70 60
Porto Rico 1
St. Maurice Paper i ..
Wab. Cotton . New Stock
Western Groceries-Corn.' 34 31
Biiiidti
Montreal Power. . .' '
Mon L. H.&P 44%! 84 84
Ontario Steel hroducts..!
Porto Rico
Rio de Janeiro
Spanish Kiver I 974 93
Victory Loan. 1924
1934
KiKhts
Canadian Gen. Electric
Howard Smith ..
Lake of Woods i
Riordon
Sales
,53.762
16.158
4)
SEPTEMBER
Sales 'High Low
19,.530 I 84 75
26.874
Sales
19.895
67.647
I03i 103
71* 624
14* 14
97 92}
1184 too
324 28
324 314 705
834 83* f4.000
^igh Low Sales
79 66 13.380
8li 681 .57.574
844
High Low Sales
69 543 22.011
70 59 32.840
100 884 16.345
73J 731 4.O0O
High Low Sales
58 494 18.895
.593 42} 37,190
654 64
89* 873 810.000
79}
62*
1184 1184
70 70
85 80j
Sales
225.798
238.283
48..SB5
6.,5-l2
19.085
1.912
193
1.539
204.671
359.345
27
2,150
1.120
20.767
8;t4
85.000
8:) 34.000
951 7.,500
72 8.000
72 11.600
93 48.,S00
89 749,400
88i 1.810.650
10
1,793
4.922
1,567
8,6T2
THE MONETARY TIMES
STOCK MARKETS IN 19SO
Record of High and Low Prices and Total Sales for the year, on Montreal and Toronto Stock Exchanges
MONTREAL TORONTO
Abitibi Com.
Href.
Ames-HoIdcn-McCready Com.
rrcf.
Asbestos Corporation .' Com.
Href.
Atlantic Sugar Co
1919
. Href.
Bell Telepho
New Stock
Brazilian T.L.& P. Co
British Columbia Fisihing & Packing Co..
Brompt n Com.
Canada Cement, Com.
Pref.
Canada Foundries St Forgings Com.
^- Prtf,
Canada N.W. Lands Com.
Canada Steamship Lines, Ltd C» m.
I'ref.
Voting Trust
Canadian Pacific Railway
Canadian Car and Foundry Com.
Pref
Can. Consolidated Rubber Co Com
Pref
Canadian Converters
Canadian Cottons, Limited Com
Pref
Canadian Gener.. 1 Electric
Cunadian Locomotive Com
Pref
Carriage Factories Com
Consolidate,! \ ing & Smelt. Co., $25 par
Crown Reserve Mining Co..
Dominion Bridge
Dominion Canners Com
Prtf
Dominion Coal Pref
Dominion Steel Corporation Com
Dominion Iron a. d Steel Co Pref
Dominion Textile Com
.Pr. f
iioi
I si
4yi
74i 63J
7Si
100
12!)S
Goodwins Limited Com.
Pref.
Hillcrest Collieries Com.
Pref.
Howard Smith Paper MilK Cnm.
Pref.
Illinois Traction Pref.
Intercolonial Coal . .
Low Sales
4S 31.73(>
9U 4.1110
26 8Q,9S0
654 90.412
44 37.756i
6\h ■M.ami
20 219,731
13 .i.S9
7.649
177
126,946
3;l,613
242,873
44.89C
10.3H8
15.700
85
SO
91,072
69„'i20
2.483
174
19.28«
25.%7
4.231
7,686
7.996
1.147
10.706
26,696
117.067
24.872
33.27S
130
2,557
348.647
3.S44
46.954
1,418
1,187
1,0'22
238
I'ref.
Lake of Woods Milling Co.
Laurentide Co
Lyall Construction Co.
Macdonald Co., A., Ltd.
M..ckay Companies
.Com,
.Com.
-Com
Maple Leaf Milling C.i Co
' Pr
Montreal Cottons, Limited Ci-
Montreal L. H a
iMontreal Lo^n a
Montreal Telegr:
Montreal Tram\
National Brewet
, $100 Par Com.
Pref.
Nova Scotia Steel and Coal Co Com.
.Pref.
Ogilv
■Mills Co.
Com
" Pref.
Ontario Steel Products Ci m.
Pref.
Ottawa L. H.&P
Ottawa Traction
Penman's Limited C'm.
" Pref
Price Bros Com
Provincial Paner Com
•• Pref,
Quebec Railway. Light, Heat* Power Co
Riordo i Pulp & Paper Co Com
" Pref
Russell Motor Car Cum
■■ Pref
Sawyer-Massey. .Com
P.ef
nd Power Co
) C'm.
Pr-^f.
Spanish River Paper & Pulp Co Com.
'.' ....Pri-f
' Pref 1914
" Vouci er
Steel Company of Canada C* m
....Pref.
St. Lawrence Flour Mills Com.
Pref.
90.355
58.712
54,3H8
6.902
2.847
113.128
1..S63
149,>09
6.813
11.018
11,743
1.499
2.134
87i
16*
II7J
96.055
56,6i;4
3.122
Tookc Bros.
Com-
•• Pref.
Twin City
VVinnipCK Electric
Wayagamack
Wabasso Cotton
Windsor Hotel
Woods Manufacturing Co Com
■• Pref
1274 114^ 62.983
17
381.609
63*
110.031
69
3,270
5*
10,203
57*
263.0.59
93*
5,268
87*
44.971
80
2Z4
VO
24,161
n
5,117
2.605
22
29.024
80
1.099
■Mi
55
48
91
45
117.722
.58
5.813
SO
9
8Bi
2.251
83J
1.793
Sales
8,716
1.282
3,875
22 304
103
64
34,532
108
83
11,753
161
16
515.437
185
244
13,560
HI
100
9,420
51
28
142.294
66
34
7,311
151
71^
2,58.298
75
.55
39,2914
100
883
8.115
256
75
31,411
91
89
30
40
40
25
80
,34
62 028
85
60i
24,034
72
44
3,010
140
133
266
74
29
18,998
109
67
20,635
100
too
25
95
873
5
80
,55
14,283
100
71
13.2-'0
83
76
2.390
109
91
9,902
100
97*
693i
91
41
411
49*
7*
15.160
rn
1.5*
61.183
44.
13
3.725
107
69
19,709
66i
26
32,840
88
79
90
974
70
1,060
824
39
134,167
92
69
2,935
146^
865
40.227
105
89
1.029
35
■m
,300
95
75
6,32
63
55
1,080
167
743
21,472
107i
91
3,237
70
64
1.362
,50
50
25
2.'5
130
4,1563
77 684
69} 664
1843 137i
944 693
191*
25.917
603
16.787
42
3.50
97
247
175
3.886
97
1,446
-.58
13,193
90
50
70
492
684
■JO
93
9,691
78 J
■2773
250
7.650
80
1.718
85
56
18
195.075
127
79,501
83
2.674
'■^i
14i
5
643
643
1
1194
97*
46.152
119
75
2.861
100
853
592
125i
75
410,475
149
82
251.997
9^
5*
2.108
88i
.543
103,871
101
853
2.932
1394
59
9.080
96*
92
390
86
67
5,862
91
83
784
64
37
10.931
57
41
2.788
91
SlJ
313
48
32
65
40
.30
708
1.50i
71
93.183
135
102
2.051
1 100
68
6^8
no
98*
1,639
102
78i
572
STOCKS
American Cyanamid Co Com.
Ames-Holuen-McCready Com.
Pref,
Atlantic Sugar Com,
• Pref
Barcelona
BeJl Telephone
New Stock
Brazil! n
B.C. Fishing and Packing Co
Burt Co.. F.N
Com
HiKh Low Sales
47 38 670
Canada Bread
Canada Cement Company .
Canada Foundries & Forgings
Canadian Locomotive
Canadian Car & Foundry.
Canadian Pacific Railway.
Canadian Salt
City Dairy
Com
Pref. I
Com.
Pref.
Com.
Pret.
Com.
Pref.
Com.
td Com.
Pref.
Voting Trust
Com.
Pref.
Com.
Pref.
Com.
Pref.
Com.
Pref,
Confederation Life
Coni^gas Mines. Ltd ($5 per share)
Cons. Mining* Smelting Co.. $25 pa
Consumers lias
Crow's Nest Pass Coal Co
Crown Reserve ($1 per share
Detroit United
Dome Mines ($10 par)
Dominion Canners Com,
Pref,
Dominion Iron & Steel Com,
Pref
1 Steel Corporatioi
Domii
Dominion lelegraph.
Duluth Superior.. , .
Howard Smith
Pref
. -Com,
,,Pref,
$5 par)
International Petroleum C
LaliC Superior Ciirp
Lake of Woods Milling Co Com
Maple Leaf Milling.
Monarch Knitting
National Steel Car Co..
1'22g 664
13i 53
133 1154
118 118
603 50
69 46
1124 71
llOi 89
733 63
lOli 95
201i '2014
3,541
9,611
20,072
6,580
17,899
1,1,59
19
60.259
6.tj63
3..568
3,00€
35,645
2,769
34,358
1,096
10
111.*
164
117
3J
694 30
5,-229
1,4%
6,888
10,598
19,151
3,920
75l 583 53,756
62.00 19.25 1.562
54i
88i
119,{
.Pref.
.Com.
Prtf.
Vot. Trust.. Com
■• ..Pref.
Nipissing ($5 per share)
Nova Scotia Steel and Coal Com.
Pref.
Ogilvie Flour Mills Co Com.
" Pref.
Pacific-Burt C m.
Pref.
Penman's Limited Com.
Pref.
Porto Rico Cnm.
•• Pref.
Prov. Paper Com.
Pref.
Quebec R.ilway L. H. & P
Rior^on Pulp & Paper Co Com.
•• " Pref.
Rogers, William A Com.
■• Prif.
Russell Motor Car Com.
■ Pref.
Sawyer Massey Com
Pref.
Com.
Pref
Spanish River Paper & Pulp Com
Shredded Wheat Co..
.W..
nt
Steel Co. of Canada Com.
" •■ ■■ Pref.
Tooke Bros., Ltd Com.
Pref.
Toronto Paper Co -
Toronto Railway
Trethewey (SI par)
Tuckett Tobacco Co Com,
' Pref,
Twin City Com,
Western Canada Flour
Winnipeg Electric
RIGHTS
Bell Telephone
30i 174
1843 1164
99J 954
80 30
954 65
1024 68
174
634
91*
54
574
1.231
2.663
1.344
1.189
30.883
3.321
1.797
4.793
.52,800
8.'277
13.75 8.40 12.123
223 12fc2
71
88}
I0I4
January
THE MONETARY TIMES
CURRENT PROBLEMS IN THE MORTGAGE LOAN
FIELD
Payments Good But Not Equal to Demand for New Loans —
Shareholders of Some Companies Have Suffered, But
Results Are Generally Good
By John Appleton.
TO-DAY'S problem in the field of the mortgage lenders is
obtaining funds to meet the demands of a larger number
of borrowers than they have hitherto had to deal with. As
usual, it has happened that borrowers ai-e many, so lenders are
few. Of course this applies to the particular sphere in which
the mortgage lender operates. There are to-day actually
more lenders than usual. To these ranks have been added
very large numbers who have saved to serve their country by
purchasing Victory bonds; many who have loaned for the first
time to their municipal governments, who, resentful of condi-
tions demanded by the usual financial market, offered "over
the counter" on terms less onei'ous their securities to their
own people; and many who have taken advantage of the at-
ti-active yields of provincial securities. To this result increase
in numbers and efficiency of selling prices has contributed very
substantially. Although cities, provinces and the Dominion
have borrowed more, paid the price, onerous as it is, and seem
to be assured of still more if asked for, there does not appear
to be in immediate prospect any source of supply approxi-
mately adequate to meet legitimate mortgage demands.
Funds Attracted to Bonds
To verify what appeared to be, to those familiar with
mortgage lending conditions, the facts with regard to this sit-
uation, direct enquiry was made of some representative lending
organizations. One general manager was found almost de-
luged in half-yearly remittances of principal and interest
which a few moments before, being interviewed, had been placed
on his desk by the postman. "Wliat are you going to do with
all the money coming in?" he was asked. "It's all spoken
for," was the answer. "Any new money coming in from
either domestic or foreign sources?" was the next question,
and the answer was, "No; it's lucky for the borrower that we
can utilize the monies paid on account of principal to meet but
a very small part of the demands. Another manager who
supervises mortgage investments exceeding $;^0,000,000 told a
similar story and added, "There's very little new money for
mortgage purposes; we can't get it. It's slipping away from
7 and 8 per cent, mortgages into 7 and 8 per cent, bonds." In
each instance, it was ascertained, payments of interest and of
principal were above the average. Also the information was
voluntarily given that the amount of mortgages outstanding
was gradually declining.
An examination of the statements of 55 companies dis-
closes a steady increase in securities as compared with mort-
gage investments. This is illustrated by the following com-
parisons:—
1916^ — — 1919
Mortgages Securities
Credit Fon. -_$40,567,.'il3 $.3,915,304
Can. Perm 27,988,970 2,161,954
Huron & Erie 11,341,924 5.388,150
Trust & Loan 15,106,990 2,390,000
Ont. L. & D._ 6,336,418 796,437
Lon. & Can. L 4,443,114 392,586
Mortgages
.?35,183,953
26,211.306
13,339,194
14,079,836
4,759917
4,381,380
Securities
$7,725,546
5,308,025
5,227,502
3,335,000
2,319,634
461,332
Totals _-$105,784,729 $15,044,431 $97,955,586 $24,377,039
Need Money in Future
The half-dozen companies whose figures we have taken
are quite representative of the whole. Within three years
their security holding increased by 60 per cent, and mortgages
declined 7 per cent. For this change there must be some
good cause as each has a very efficient organization designed
for mortgage lending purposes. Actual funds at the disposal
of such organizations suffered no actual decline in volume.
Foreign holders of debentures to an appreciable extent desired
their money back, but these withdrawals were more than offset
by increase in deposits and domestic debentures. In this coun-
Mining in
Manitoba
This industry will be the greatest
in the Province within five years.
^X'e have representatives in the
most important districts.
Write us for information.
Manitoba Finance
Corporation Ltd.
410-11 Electric Railway Chambers
Mining Department WINNIPEG
NOTICE
is hereby given that the Annual General Meeting of the
Policyholders and Guarantors of the
North American Life Assurance
Company
will be held at the Head Ofiice of the Company, North
American Life Building, 112-118 King Street West, Toronto,
Ont., on
THURSDAY, 27th January, 1921
at 11 o'clock in the forenoon,
for the reception of the Annual Report, a Statement of the
Affairs of the Company, and the transaction of all such
business as may be done at a general meeting of the Com-
pany.
W. B. TAYLOR,
January 8, 1921. Secretary.
Condensed Advertisements
" Positions \^ anted." 3c per word : all other condensed advenisemerts
5c. pet word. Minimum charge for any condensed advertisement 65c
per inst^rtion. All condenstd ^dvertisen ents must cor form to usual
style. Condensed adveriiseo-ents. on account of the very low rates
charg^d for them, are pay blein advance : 50 per cent extra if charged.
WANTED. — Position with a Financial Institution by
young man \vith fourteen years' banking experience. Clean
record. Box 375, Monetary Times, Toronto.
WANTED. — Special Agent and Inspector, Provinces
Manitoba and Saskatchewan. Headquarters, Regina. Repre-
sent three large American Companies. Good salary. Replies
will be treated confidentially. Box 371, Moneltiry Times, To-
ronto.
THE MONETARY TIMES
Volume 66
try, liovv-fvor, there is now, and thtre will be in all probability
for a generation or two yet to come, an incessant demand for
capital for the development of homes, farms and urban com-
munities.
If this demand isvnot met a form of development essen-
tial to the nation's welfare is restricted and progress halted.
Progress in other fields in Canada did not cease during the
war.- Industry expanded very markedly in response to the
opportunities for greater reward which they respectively of-
fered. To the lender on mortgage security there were, how-
ever, more "knocks" than rewards. He was subjected to dis-
criminatory restrictions, taxation and moratoria in place of
encouragement. It can be no surprise therefore that funds
usually placed at the disposal of mortgage lenders have been
diverted to other fields, and in consequence the entire country
is faced with an unprecedented demand for loans from build-
ers of farms and homes, the need of which is of first im-
portance.
Public Money Appropriated
The Canadian industries expanded, as already noted, dur-
ing the war as a result of those abroad being turned from ordi-
nary trade to war purposes. Movement of rural to urban
centres of population was therefore accelerated. Meanwhile
the usual agencies which provide capital and those who study
and supply the demand for housing accommodation were held
in check by moratoria, special discriminatory taxation by the
Dominion government, and a press which voices too readily
and too loudly a spirit of Bolshevism chiefly nursed among the
shiftless and thriftless. When their own chickens como loine
to roost they clamor for state help. All forms of government,-
municipal, provincial and Dominion, were approached and
pressed to make advances at a low rate of interest to b ild
houses. The Dominion government appropriated $25,000, ;!00,
all of which has been absorbed. Municipalities and provinceo
have helped, and what information has been procurable leads
to the belief that they have had unfortunate experiences. It
may be ventured here, in the way of prophecy, that when the
final history of the housing experiment is written it will be an
asset worth as much as a deposit in the Farmers' Bank, still
recorded as an asset in Ontario's public accounts.
Public money used in this way, at great cost to the tax-
payer, alleviated pressing needs of the moment, but it estab-
lished in the minds of a militant minority the idea that the
provision of a home is not now the business of the individual
but a duty the state, owes to the individual. Even though a
thrifty individual builds for the service of others he is threat-
ened with a "court" to regulate the rent of it. In this way
the state is flirting in dangerous proximity to the meshes of
the master spider Bolshevism. The wary investor, crafts-
man's skill and the organized lending agency will retire from
the risking of eifort in such a field as the state extends its
operations therein.
Will the State Give Way?
It remains to be seen whether the state and municipality
jointly are to continue to act as mortgage lendeis, as they did
under cover of special war conditions, and voluntarily in a lim-
ited and quite inefl'ective way, in lending to farmers in two
of the western provinces. Sporadic demands for moratoria,
bonused lending, and retroactive legislation prejudicing legal-
ly-made contracts still exist. That they have contributed to
making necessary higher taxation, higher interest rates and
their natural corrollary — shortage of funds — is not fully real-
ized. By this yielding to pressure from a minority of borrow-
ers a burden has been placed by bonused provincial and muni-
cipal lending on all mortgagors. Nor is considerable relief
likely to come until public opinion demands and ensures free-
. dom and sanctity of contracts and the removal of discrimina-
tory taxation of mortgage corporation investments.
Results for Shareholders
From the figures I have quoted and enquiries made it is
inferred that the companies generally have held their own dur-
ing the war period and that one which followed. At the pres-
ent time they are generally prosperous, but there has not been
expansion. Shareholders have fared not too well. Dividends
did not increase as the cost of living ascended. Nor have the
shareholders' funds earned as much for them as they might
have done if they had been applied to industry and trade dur-
ing years when rewards ran so high as to incur liability under
the excess profits, too. Loan company profits did not get into
such a class. But satisfaction — a satisfaction worth a ^food
deal to shareholders — is knowing that despite rough han-
dling at the hands of legislatures and tax-gatherers they
could rely upon getting cash dividends regularly. There are
but few e.xceptions and these are confined to companies oper-
ating in localities where drastic moratorium legislation was
taken advantage of. From now on — say for another ten
years — funds employed in the mortgage field will be in very
great demand at high rates, and as a result the loan company
shareholders should profit.
Interest rates in Canada have been held in check by
credit control and credit creation by the Dominion govern-
ment. Force of circumstances is now compelling that author-
ity to save itself and the country from disaster by relinquish-
ing control and preparing the way for the return of more nor-
mal conditions.
Treatment Must Be Fair
It can be safely assumed that there will be no great vol-
ume of new money available for mortgage purposes until the
investing public is convinced that legislators will not unneces-
sarily impair mortgage contracts, and that, at the same time,
they will see to it that the mortgage itself and the security
covered by it is not insidiously attacked by varying forms of
special taxation. Treatment of this chai'acter, not applied to
all other forms of very desirable constructive national effort,
is in a large measure responsible for the steadily advancing
rates of interest on mortgages.
The burden is on the borrower, not the lender, but the
latter naturally avoids those paths in which unnatural ob-
structions are placed. Those provinces of Canada which did
not so obstruct the mortgage lender will find that its borrow-
ers will have a greater choice of lenders and of terms. This
fs quite in accord with the natural operation of economic law.
EXPORTS TO SMALL FOREIGN COUNTRIES
In the tables entitled "Canada's Commercial Balance
Sheet," shown in this number, it will be noted that the ex-
ports to "other foreign countries" during the fiscal year
ended March 31, 1920, amounted to substantial figures. The
details of these items were as follows: —
Imports Into Canada, 1920, Under Heading "Other
Foreign Countries"
Countries. Dutiable.
Czecho-Slovakia $2,238
Finland
French East Indies
$2,238
Countries. Canadian.
.^.Ibama $28,600
Bulgaria 221
Czecho-Slovakia 387
Esthonia 44,862
Finland 26,438
Germany 610,528
Palestine 3,884
Poland 32,384
Syria 15,575
Tripoli 752
$763,631
Free.
$ 480
5,524
$6,004
Foi-eign.
$ 45,743
45,298
123,762
$214,803
Total.
$2,238
480
5,524
$8,242
Total.
$28,600
221
387
44,862
72,181
655,826
3,884
156,146
15,575
752
$978,434
Saskatchewan's sinking funds total $1,324,442, not
$324,442 as was incorrectly printed on page 129. These
sinking funds, together with the debt for utilities, etc., m?.ie
up a total of $22,133,243.
January 7, 1921
THE MONETARY TIMES
WE SPECIALIZE IN
HIGH GRADE
GOVERNMENT, PROVINCIAL
and MUNICIPAL BONDS
111 iiiiiiiiiiiiiiiiiiuiniuiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiinniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiii iliiiiiiiiiiiiiiiiiiniininiiiiiiiniiiuiiiiiiiiiniiiiiiiiniiiiii-
Most favorable prices quoted for buying or selling all
CANADIAN VICTORY BONDS
imiiiiiiiiiiiiiiiimiiiniiiiiiMimiiiniiiiiiiiimuiiiraiuiiiiuiiiiiiiininiitinmimnwiiiiiuiiiuiiiiiuiiii^^
Correspondence invited
MACNEILL, GRAHAM and CO.
BANK OF HAMILTON BUILDING, TORONTO
Canadian
Government.
Municipal
and
Corporation
Bonds
High Grade
Industrial
Securities
Anderson, RoDinson
&Co. 1
Investment Bankers
14 King
Street East -
Toronto
Can.
1
TKc
Depa
at y
Services
rtment a
■jf ou
re at
al.
Statistical
All
w,ll
■ nqu.ries {or
Ke most car
eously atttndcj
iniormation
efully and
to.
116
THE MONETARY TIMES
Volume 66
The Market Record of Canadian War Loan Issues
Prices in November Were at Lowest Point— High Water Mark Was Reached in June,
1919, When All Outstanding Issues Were Above Par— The Influence of Exchange, and the
Development of Market Control—The Embargo and the Present Unsatisfactory Position
DURING the five years which have now elapsed since Can-
adian war bonds first appeared upon the market they
have experienced all the vagaries to which a security market
is subjected by war conditions. They have advanced to a pre-
mium and have sagged to a discount. Their market price
has been fixed by a bond dealers' committee, and again thsy
have been thrown upon the open market; just at present both
methods are in use, some of the issues being traded in on the
stock exchanges, while others are handled at fixed prices.
Some of the most critical disputes in Canadian financial cir-
cles have centered around the war loans. On what terms
they should be issued, and whether patriotism or an attractive
rate of interest should be relied upon to ensure the success of
the flotations, was the first that arose. Once a loan was
placed, there came the question of trading. When several
loans had been issued and the amount of war bonds outstand-
ing grew to what was for this country an enormous amount,
it was urged that the tax exemption feature should be abol-
ished. The downward sweep of prices has again revived the
question as to whether the price of the loans should be fixed
or left to the hazards of an open market. Now that all the
issues have been marketed, and it is accepted that the terms
of sale must be strictly observed, the only surviving dispute
is that of market price; here, however, the question of ways
and means developed numerous difficulties, and the methods
adopted to support the market have been the subject of keen
criticism.
Some Mistakes Were Made
War finance was a new experience for Canada, and there
is» therefore, some excuse for uncertainty. The methods
adopted by the United States, Great Britain and other coun-
tries of experience varied, and the record of the Canadian
issues compares very well with that of the bonds of these
countries.
Now that war financing is completed, and all the issues
are actively traded in at prices which are stable in view of
present conditions, a synopsis of the course of prices of the
war bonds as marketed securities may be appropriate. This
involves the consideration of prices, conti-ol, and several other
factors which have exerted influence upon the market.
It is not necessary for this purpose to review the details
regarding each flotation in Canada. The essential facts about
the domestic war loans are given in the accompanying table,
however, as the issues differ in interest rate, in taxability,
and in the places where interest is payable, points which must
all be considered by the prospective buyer. The tax exemp-
tion, it must be remembered, applies only to federal income
taxes, and not to the income taxes which are levied by several
of the Canadian provinces and cities.
First Loan Set New Record
When it was seen in 1915 that the war would be an ex-
pensive undertaking for Canada, it was decided to issue a
domestic war loan. The amount required at the time, $50,-
000,000, far exceeded any single issue previously made in this
country, and to ensure its success everything possible was done
to make it attractive. The bonds were to mature in ten years,
carried interest at 5 per cent., and were made exempt from
federal taxation, although at that time a federal income tax
was not even under consideration.
The bonds were dated December 1, 1915, the issue price
was 97%; a full six months' interest was to be paid on June
1, however, and as a discount was allowed for advance pay-
ment in full, the actual 'issue price was about 96%, yielding
approximately 5V2 per cent. Almost 25,000 subscribers re-
sponded, with a total of $79,000,000, and additional assistance
from the banks brought the total up to $100,000,000, all of
which was allotted. Although provision was made for pay-
ment by installments, about $75,000,000 of the bonds were
paid for in advance. These bonds were immediately listed on
the Montreal and Toronto Stock Exchanges, the first sale
taking place on December 18th on the Montreal exchange, at
98, or V2 above the issue price.
The Second War Loan
The second issue was made in the fall of 1916, when a,
fifteen-year maturity was chosen, the bonds being dated
October 1, 1916. Otherwise the terms, including the price,
were the same. The cash discount this time made the price
about 97, yielding 5.30 per cent. The success of the first
issue induced the government to ask for $100,000,000, and the
response of $145,000,000 from 34,526 subscribers justified this
confidence. Only $100,000,000 was allotted, however, and
this cutting down of allotments, coupled with the fact that the
previous issue was already selling at a premium compared
with the issue price, resulted in the advance of both issues to
around 98^2. These bonds were also listed at once, the sales
dui-ing the first week in October being mostly at this figure.
Both these loans had been made at prices which were at-
tractive in view of market conditions, and there was a keen
demand for the bonds during the last few weeks of 1916. The
early weeks of 1917 brought a slump in the market, however,
resulting from a successful German drive in France and the.
entry of the United States into the war. At the beginning of
March both issues were selling at 96%. At the same time
Great Britain's financial stress became acute, and the Cana-
dian government was impressed wth the necessity for meet-
ing more of its financial requirements, such as the pajTnent of
her troops abroad and credits for the pur'chase of supplies in
Canada.
The Third War Loan
Another war loan was necessary, therefore, and a price of
96 for twenty-year 5 per cent, bonds, dated March 1, 1917,
was decided upon. A discount for prepayment in full was
again allowed, making the price 94.068, yielding 5% per cent.
Although the United States was now faced with obligations
of her own, a special efl'ort was made to bring in subscriptions
from across the border by making the bonds payable in New
York as well as Canada. The success of this loan eclipsed
previous results, a total of $183,000,000 being received, of
which $150,000,000 was issued.
In spite of this success, however, prices continued to go
down. The first sales on the exchanges took place about the
middle of April, at 95, but the market weakened immediately.
The new bonds touched 93% at midsummer, after which they
recovered to 95 in August, but were down to 91% at the end
of the year. The other issues suffered corresponding de-
clines. By this time the funds had been used up by the gov-
ernment, and the necessity for raising still larger sums to
meet the increased scale of expenditure, in the face of adverse
market conditions, became a problem of paramount import-
ance. The solution was the launching of the first Victory
loan.
New Flan of Raising Money
Here it may be pointed out that the previous issues had
been made by the usual underwriting methods. Bond dealers,
stock bi-okers, banks and other financial institutions competed
for subscriptions. There had been much duplication in work,
and especially in the efforts to secure the large subscriptions,
on which the commissions amounted to a considerable sum.
For the Victory loan it was decided to pool the efforts by
forming one huge selling organization. Practically every
bond dealer, and many stock brokers, insurance agents and
other financial men took part in the campaign. Dominion,
provincial and local committees directed the efforts, and the
banks took in the money.
January 7, 1921
THE MONETARY TIMES
117
K^rff'y^rff'^yA^A^h^^^
^Sh
w^^mmm^nm^w^m^
INVfSTKENT-StRVICl
Underwriting
Industrial
Canada
In addition to offering Government and
Municipal Bonds, we have for fifteen years
been associated with Canadian in\'estors in
the financing o( forty-three great Canadian
industries, employing a capital of many
hundreds of millions of dollars.
Kasic necessity, plus natural resources to
meet it, is the keystone upon which all our
corporation financing has been done. This
explains the confidence of investors in the
security issues that hear our imprint.
Send your name to be added to our Mailing
List.
Royal Securities Corporation
I.IMITKI)
Montreal Toronto Halifax St. John Winnipeg
Vancouver New York London, Eng.
%
Throughout the West
Insurance
Investments in Western Canada
Farm Lands and
Farm Land Mortgages
United Grain Growers Securities
Company is a subsidiary company
owned and operated by United
Grain Growers Ltd. It has all the
advantages given by the complete
organization of the parent company
Winnipeg Calgary
The Organized Farmer in Business
118
THE MONETARY TIMES
Volume 66
Success of First Victory Loan
In this way a total of $398,000,000 in subscriptions was
piled up, compared with the modest sum of $150,000,000 asked.
In order to meet the desire of all classes of buyers, it was
decided to issue bonds of three maturities — five, ten and
twenty years. These bonds were dated December 1, 1917.
The interest rate was raised to 5% per cent., and although the
price was fixed at par, a discount was again allowed for pre-
payment in full, bringing the price down to 98.65 and interest.
The great need of the government for funds is indicated by the
fact that $398,000,000, or almost the whole of the subscrip-
tions, was accepted. The most significant indication of the
popularity of the loan was, however, the fact that 820,035 sub-
scribers responded, or twenty times the number subscribing
for the preceding loan.
In spite of the fact that the prospectus for the first Vic-
tory loan stated that the bonds would be listed, this was not
done until late in 1918. The issue was so large and the mar-
ket so weak that it was thought the publication of sale prices
would result in panicky sales. There was talk of support of
the market, and the government did go so far as to pass an
order-in-council providing that new issues of bonds and stock
could be made only with the permission of the finance min-
ister.
Victory Loan Prices Fixed
To provide the machinery for trading in the Victory loan,
a market committee composed of bond dealers was appointed
by the government, with authority to fix the prices for trad-
ing. This committee began operations on January 22, 1918,
the prices for all issues being 98% and interest to the buyer;
no fixed buying price was set, but the dealers agreed to buy
at 97%, one point below the selling price. Meanwhile the
three preceding loans remained listed on the stock exchanges.
The year 1918 brought a recovery in bond prices. By
June 8th the market had improved to such a degree that the
committee was able to advance the prices to 99% and interest
to the buyer. A second Victory loan was being discussed at
this time, and the suggestion that it should not be exempt
from taxes had an important influence on prices. On August
12th the selling price was raised to par. 99 and interest being
fixed as the buying price. On September 7th sales ceased in
anticipation of the second Victory loan, but small amounts
continued to be bought at 99.
Second Victory Loan Established Record
The second Victory loan was issued in the fall of 1918.
Twa maturities — five and fifteen years — were chosen, dating
from November 1, 1918. The interest rate was again 5% per
cent., but this time accrued interest was charged on instal-
ment pajnnents, making the price 100 and interest, and the
yield 5% per cent. The bonds were slightly less attractive
than those of the first Victory loan, but the success was
greater. This time the sum of $300,000,000, or well within
the amount previously secured, was requested, but subscrip-
tions reached $695,000,000, and $610,000,000 was allotted. The
number of subscribers was 1,104,287, or one in seven of the
Canadian population. These results constitute the record in
Canadian war loan financing, and they were due not only to the
relatively strong position of the market, the attractiveness of
the issue, and the improved organization engaged in securing
the subscriptions, but also to the fact that the armistice was
signed some days before the campaign closed.
New Prices Were Higher
The new bonds were also placed under the control of the
market committee, the following prices being set when trad-
ing was resumed on December 2:—
Maturity
Buying
Selling
1923 _-_.
. 99
100
1933 __-.
. 99%
100%
1922
. 99
100
1927 ___.
- 99%
100%
1937
. 100
101
On December
17th
the
prices of the
five Victory loan
issues were advanced to the following figures: —
Maturity
Buying
Selling
1922 ___.
. 991/2
1001/2
1923 ___.
. 991/2
iooy2
1927 __-.
99%
100%
1933 ___.
100
101
1937 — .
- 101
102
Release of Market Control
The market for the 1917 Victories had improved to such a
degree that the committee, after consultation witli the govern-
ment, was able to relax its control of these maturities on De-
cember 21, 1918, and they were at once listed on the exchanges.
The first transactions were at the following prices: —
1922, 99; 1927, 100 Vi; 1937, 101%. The demand for the 1918
Victories also proved so good that on January 20 it was de-
cided to release these as well; trading in these bonds during
the week ended January 24th was at about par for the 1923's
and 101% for the 1933's.
The operations of the special committee now ceased. A
summary of its work issued at this time showed that during
its period of operations, which was just two days short of one
year, a total of $70,336,000 had passed through its hands, di-
vided as follows: —
1917 Victory Loan
1922 maturity 1 $28,472,450
1927 maturity 5,034,900
1937 maturity 22,550,650
$56,058,000
1918 Victory Loan
1923 maturity $1,806,000
1933 maturity 12,472,000
$14,278,000
The committee had handled 33,764 separate transactions,
of which 22,613 were incoming and 11,151 were outgoing. Two
hundred and forty dealers, including stock exchange houses,
had entered into the agreement to trade only at the fixed
prices. The country had been divided into three sections for
trading purposes, with centres at Montreal, Toronto and Win-
nipeg, the number of firms connected with each being 104, 97
and 39 respectively.
Fixed Victory Loan Prices. (The figure in brackets is the buying price).
1918 Jan. 22
" June 8
" Aug. 12
" Dec. 2
" Dec. 17
" Dec. 21
1919 Jan. 20
1920 Jan.' 22
" Feb. 2:1
" Mar. 22
" Mar. 27
" Apr. 27
" May :5
" Aug. 30
" Nov. 29
1922.
98% (97%)
991/2(98%)
100 (99)
100 (99) ■
100% (99%)
Rele&sed
100% (99%)
99 (98)
99% (98%)
100 (99)
99% (98%)
99 (98)
98 (97)
Released
1927.
98%(97?8)
99% (98%)
100 (99)
100% (99%)
100% (99%)
Released
101% (101%)
100 (99)
100 (99)
100% (99%)
100 (99)
99% (98%)
97 (96)
Released
1937.
98%(97y8)
99%(98y2)
100 (99)
101 (100)
102 (101)
Released
104% (104)
101 (100)
1923.
1933.
1924.
102
103
102
101
98
(101)
(102)
(101)
(100)
(97)
Released
100 (99)
101% (99%)
100% (99%)
Released
100% (99%)
99 (98)
99% (98%)
99% (98%)
99% (98%)
99 (98)
98 (97)
Released
100% (99%)
101 (100)
101 (100)
Released
102% (102)
100 (99)
1001/2(99%)
100% (99%)
1001/2(991/2)
99% (98%)
96% (95%)
Released
100 (99)
97% (96%)
98% (97%)
98% (97%)
98% (97%)
98 (97)
97 (96)
Released
100(99)
97(96)
97(96)
97(96)
97(96)
96(95)
93(92)
Released
January 7, 1921
THE MONETARY TIMES
119
Province of Vast Resources
THE finances of the Province have been restored
to a sound condition, current expenditure is
being kept within revenue, and borrowing is
restricted to absolutely necessary capital expendi-
tures of a reproductive nature, or in connection with
assistance to returned men to re-establish them-
selves in civil life.
FINANCE
FISCAL YEAR ENDED 31st MARCH, 1920
Revenue (current account) $10,931,279.21
Expenditure (current account).. 9,887,744.62
Expenditure (capital account) . . . 2,224,541.27
Total assets exceed total liabilities by $22,181,2.52.63,
exclusive of natural resources.
LUMBER
The forests of the Province vie with its mines
for first place in the splendid array of its natural
resources, and furnish about one-fourth of the Pro-
vince's revenue. In the Queen Charlotte Islands
alone is a stand of twenty-three billion feet of sitka
spruce. With the application of modem methods of
protection and reforestation, these are practically
inexhaustible, and the demand is an increasing one.
Forest production in 1919, including paper and pulp,
was valued at $70,285,000.94, an increase of 30 per
cent, over the pi-ovious year.
MINING
The mineral output for 1919 was valued at $33.-
296,313, a decrease of about 20 per cent. This de-
crease in production as compared with the preceding
year, loses its adverse significance when it is con-
sidered that the 1919 production is still materially
greater than that of any year prior to 1916, and
that the larger productions of the years 1916-17-18
were due to the stimulus of war and the inflated
prices attendant thereon. There is considerable
activity in mining throughout the Province, and a
great deal of prospecting and development work is
being done as a result of the passage of the Mineral
Survey and Development Act. Diamond drilling,
carried on by the Department of Mines, shows a
growing tonnage of iron ore, and investigations are
still in progress.
FISHERIES
.■Vs in recent years, British Columbia again led all
the Provinces of Canada in the value of her fishery
products, which totalled $27,282,223. Her output
for the year 1918 exceeded in value that of Nova
Scotia by $12,139,157, and exceeded that of all the
other Provinces combined by $9,456,968. This in-
cludes the products of the whaling industry, which
has been prosecuted vigorously during the past few
seasons on the West Coast of Vancouver Island and
the Queen Charlotte Islands. Last season's catch of
halibut amounted to eighteen million pounds in
weight.
INDUSTRIAL
To all manufacturers British Columbia offers very
great opportunities, having illimitable supplies of
all raw materials. Iron ore exists in large bodies,
and in most cases close to power and transportation.
An abundance of water power readily convei-tible
into electric power is available at numerous points
throughout the Province. The utilization of the
immense iron deposits of the Province appears to
be an early possibility, and the establishment of
steel mills and steel shipbuilding plants is under
consideration. Wooden shipbuilding has been in
progress for the past two years, and the vessels
already consti-ucted are operating successfully.
Under the Department of Industries the Govern-
ment has loaned over One Million Dollars to assist
and develop the Industries of British Columbia.
AGRICULTURE
The year 1919 was the most successful on record
so far as the agricultural industry in British Colum-
bia was concerned.
The total production was $65,384,556, being an in-
crease of 32 per cent, over the year 1918; this being
due to some extent to the high prices prevailing.
The fruit crop was the largest on record, there
being a notable increase in apples and small fruits —
4,341 cars of tree fruits being shipped and 327 cars
of small fruits. Grains and fodder crops did well,
fall wheat and oats especially showing an increase
in acreage and yield also.
Live Stock held its own, poultry and egg produc-
tion showing an increase of 26% for the year. The
quantity of meats marketed showed an increase of
9%; whilst dairy products, especially cheese, were
well ahead of previous records.
The steady influx during 1920 of a good type of
settler from Dominion points and from adjoining
States to the splendid valleys of Central British
Columbia will materially augment the production
from these newly settled districts, and although the
Statistics for 1920 are not yet available, a record
is again confidently expected for the Province.
For any particulars address
Bureau of Information,
VICTORIA, B.C.
or
Hon. John Hart,
Minister of Finance, VICTORIA, B.C.
120
THE MONETARY TIMES
Volume 66
High Prices in 1919
The bond market was, as is well known, very strong in the
first six months of 1919. The high-water mark for any Can-
dian bond was reached in June, when the Victory loan twenty-
year 5% per cent, bonds sold at 106%. All the issues were
at a substantial premium. The summer brought the unpeg-
ging of sterling exchange, however, and a flood of Canadian
securities held in the United Kingdom, coupled with a general
decline in security prices on this continent, carried prices down
several points during the last six months of the year.
The Third Victory Loan
In the fall the third Victory loan, which was the last do-
mestic war loan, was issued. Five and fifteen-year bonds
were again issued, dated December 1, 1919, with "interest at
5% per cent., and the price was again 100 and interest; $300,-
000,000 was asked for and subscriptions totalled $678,000,000,
which, while not up to the preceding figure, still made the loan
a distinct success. The fact that these bonds were subject to
income tax, and that an income tax had been levied by the
federal government in 1917, and increased in 1918 and 1919,
was the main handicap encountered.
Market Control Resumed
The bonds of the third Victoi-y loan have never been listed.
Moreover, the first and second Victory loan issues were re-
moved from the stock exchanges on January 22, 1920. A com-
mittee similar to the former one has handled all trading since
that date. In a statement issued by way of explanation the
chairman of the new committee said:
"Under an arrangement entered into by the Bond Dealers'
Association of Canada and the members of the Toronto, Mont-
real and Winnipeg Stock Exchanges, all maturities of 1917
and 1918 Victory loans are now placed under the control of the
market committee, along with the 1919 issue, and trading un-
der the auspices of the committee will commence this morn-
ing. This is a resumption of the plan which was so success-
ful following the 1917 and 1918 Victory loans. The bonds
now listed on the exchanges will continue to be quoted there,
and the records of transactions will appear as before."
The prices fixed for the bonds were as follows: —
Maturity Buying Selling
1922 99% 100%
1927 101% 101%
1937 104 10472
1923 99% 100%
1933 102 102%
1924 99 100
1934 99 100
It will be noticed that the spread in the case of the matur-
ities of the first two issues was reduced to one point. What
was actually done was that the middle price was called the
fixed price, to which a commission of % was added on sales,
and from which a commission of % was deducted on pur-
chases; both commissions were appropriated by the committee,
however, and the V2 per cent, paid to the firm disposing of the
bonds.
On February 23 it was found necessary to cut the prices,
these being fixed as follows: — 1922, 99; 1923, 99; 1924 97V->-
1927, 100; 1933, 100; 1934, 97; 1937, 101.
These prices were the net cost to the buyer. Instead of
adding a commission on sales prices and deducting a commis-
sion from purchase prices, the latter were fixed at one point
below the sales prices in each case. This made a margin of
one per cent, on all issues, instead of one-half of one per cent.,
as formerly. The inferiority of the 1924 and 1934 bonds, be-
cause of their taxability, is evident from the specially large
reduction in their price.
Embargo on Purchases Abroad
Coincident with this reduction in prices was the imposition
of a voluntary embargo on the purchase of securities from
abroad. This was on February 26. It took the form of a
request to dealers and brokers. A statement issued by the
Bond Dealers' Association said:
"The bond dealers and stock exchanges have been in con-
ference to-day with regard to the proposal of the minister of
finance concerning the importation of securities into Canada,
and have reached a decision to grant the minister's request,
and to co-operate to the fullest extent. The decision has been
made necessary by reason of the great quantities of Canadian
securities coming over from Britain, which has been financing
Canada for the last fifty years. The drop in sterling ex-
change made it possible to ship these securities to Canada at
prices that were very attractive, as compared with other Can-
adian securities, including Victory bonds.
"The first step taken by the minister of finance was when
he realized that, if the market committee was to continue to
distribute bonds in the same satisfactory manner as in the
past, the prices of those bonds should be brought into line
with market conditions. This was done by the reduction in
price of Victory bonds; in fact, many people think that these
prices, as readjusted, are really lower than they should be.
"The next step was to request the bond houses and stock
brokers who have been bringing securities from Great Britain
not to continue this activity, and the banks were requested to
co-operate in this direction. The members of the Bond
Dealers' Association and the Montreal and Toronto Stock Ex-
changes have all met, and, while it means a serious loss of
business to the bond houses, and also to the stock brokers, all
these bodies have agreed to meet the request of the finance
minister to the fullest possible extent.
Finance Minister's Statement
Sir Henry Drayton, the finance minister, said in an inter-
view at the time:—
"Owing to the fall in value of the pound sterling on this
side of the Atlantic a large quantity of Canadian securities
held overseas have been dumped on the Canadian market. The
securities sold are, for the most part, not direct government
obligations, but many of them are guaranteed by the Domin-
ion and provincial governments. These outstanding obliga-
tions, whose absorption or liquidation ought to be temporarily
stopped, represent to a large extent the working capital of the
country. They include the obligations of our municipalities,
railways, and industries. After extended conferences with
bond dealers, stock brokers and bankers, it has been deter-
mined that the sale of the securities held overseas on the Can-
adian market must be discouraged and, so far as possible,
stopped. Effective steps for this purpose in the direction of
the financial channels through which such transactions take
place have been taken. This action is not taken through any
compelling law, but is wholly induced by a common-sense rec-
ognition of the business requirements of the country. The
purchaser of these long-date obligations, in addition to taking
essential capital out of the country, as settlements are made
on New York, still further depreciates the value of the Cana-
dian dollar there, and renders still more difficult trade with
the United States and the discharge of our obligations in that
market."
Recent Changes in Prices
On March 22 the prices were advanced to the following: —
1922, 991/2; 1923, 99%; 1927, 100; 1933, 100%; 1937, 192;
1924, 981/2; 1934, 97.
Another advance iox most of the maturities was made on
March 27, as follows:— 1922, 100; 1923, 99%; 1927, lOOya;
1933, 101 V2; 1937, 103; 1024, 99; 1934, 97.
On April 27 it was found necessary to cut the prices to the
following:— 1922, 99%; 1923, 99%; 1927, 100; 1933, 100%;
1937. 102; 1924, 98%; 1934, 97.
Another reduction was made on May 3, as follows: —
1922, 99; 1927, 99%; 1937, 101; 1923, 99; 1933, 99%; 1924, 98;
1934, 96.
The next change was made at the end of August, to the
following:— 1922, 98; 1923, 98; 1927, 97; 1933, 96%; 1937, 98;
1924, 97; 1934, 93.
All the prices which have been fixed by the committee are
shown in the accompanying table.
On November 29 all the Victory Loan issues were re-
moved from control and listed on the stock exchanges, They
suffered a loss of several points each, the lowest being
reached about noon. Thereafter there was a steady re-
covery, and day-to-day trading up to late in December, while
showing slight fluctuations in both directions, found prices
gradually improving. Up to December 23rd no action had
been taken regarding the embargo.
January 7, 1921 THE MONETARY TIMES
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^
DEALERS IN
Government, Municipal
AND
Corporation Securities
Correspondence Invited
L. M. Green & Co. |
Members Toronto Stock Exchange M
Union Bank Bldg. - Toronto 1
IIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIillllllllllUIIIUIIIIIIIIIH^^^
The International Loan
Company
GEORGE \^ . ARGUE. M D.. General Manager
Subscribed Capital
Authorized Capital
$2,830,000
$20,000,000
The International Loan Company is seeking
to save and conserve part of the current
earnings of Manitoba people to meet the
requirements of Manitoba farmers. In the
past six years it has enlisted more than
twelve hundred shareholders.
All the funds of the Company are invested
in first mortgages on Manitoba farms, the
best security in the world with so high a
return.
Correspondence is invited from any part
of Canada
Head Office
224 Curry Building, Winnipeg
I ■■ 1 111 1 ■■■■■■■■■■ M
Earnings
Past and Present
It sometimes happens
that large current earn-
ings give a misleading
idea as to the value
of a Company's secur-
ities. The Investor
seeking information as
to how earnings have
averaged over a per-
iod of years on the
stock he is consider-
mg, will find this, to-
gether with other
valuable facts, in our
Analysis of Canadian
stocks.
This invaluable collection
of data enables the Investor
to size up accurately the
comparative position of
the leading Canadian
issues.
A copy will be mailed free
on application.
Greenshields & Co.
Investment Bankers
14 King Street East, Toronto
Montreal Ottawa
X33
122
THE MONETARY TIMES
Volume 66
Ten- Year Comparison of Bond Prices
Lowest Point Reached in 1920— Last Two Months Witnessed
Strengthening, However — May be Less Borrowing in 1921,
but Some I'rovinces and Cities are Already Heavily Committed
By C. H. BURGESS
C. H. Burgess and Co., Bond Dealers, Toronto
THE year 1920 opened with a promising bond market, until
there was a very severe drop in sterling exchange.
Immediately, the English holders of Canadian bonds began
to sell them in this market, and the lower sterling exchange
went, the cheaper the bonds were bought. This continued
until about the end of February, when the matter became so
serious that the minister of finance, in order to protect the
prices of Victory bonds and conserve Canadian ba-iik deposits,
asked the bond dealers to refrain from bringing more of
these bonds into Canada. He asked the banks to co-oper&te.
The bond dealers expressed their willingness to do this, pro-
viding the minister of finance would check the importation of
luxuries from outside the country, which was having more
to do with creating len adverse exchange situation for Can-
ada than the bonds that were being imported. The minister
promised to do what he could, but, owing to the delicate posi-
tion of trade between Canada and the United States, he
could not put an embargo on, but tried to accomplish the
same thing by putting a heavier duty on luxuries coming in
from that country.
The coming in of these sterling securities demoralized
the market. One could not tell what bonds were worth, as
the next day they might be undersold by imported securities.
Provinces Were Heavy Borrowers
Some large sales were hiade at the beginning of the
year, the most important of which were $3,000,000 by the
province of Ontario in January, bearing 5% per cent., and
maturing at the end of ten yea-rs. These brought about a
5.70 per cent. rate. This was followed by another loan, in
which they got their money at about 5.80 per cent. The
province of British Columbia offered $2,450,000 of bonds,
bearing- 5 per cent, and maturing at the end of five years,
the bonds being payable in the United States or Canada The
province secured its money at around a 5.60 per cent. rate.
About this time the New York funds began to rise very
decidedly and the premium increased steadily until it reached
about 17 per cent. This enabled Canadian municipalities,
who issued bonds with the coupons payable in United States
gold, to borrow their money for the time being at attrac-
tive rates. Of course, it cost them a lot to pay the coupons
when they became due, but most of them accepted this, ex-
pecting to be able to redeem the bonds to advantage as they
became due. Manitoba also issued about the beginning of
the year $4,000,000 of bonds. Toronto Hai-bor Commission
issued $2,000,000 of bonds. Greater Winnipeg Water Dis-
trict issued $1,000,000 and the province of Saskatchewan is-
sued $3,500,000 6 per cent, five-year bonds. All this time
bonds were coming in from England in very large amounts,
and it began to embaiTass people who contemplated tender-
ing for bonds that were not payable in New York.
Around March Toronto bonds would sell at about a rate
to yield 5% per cent.
Victories Controlled Market
The selling prices of Victory bonds at this time, which
really was the controlling feature of the market, outside of
New York funds, were as follows: —
Maturity. Price.'
Dee. 1, 1922 991/2 and interest
Nov. 1, 1928 99% " "
Dec. 1, 1927 100 " "
Nov. 1, 1933 IOOV2 " "
Dec. 1, 1937 102 " "
1919 Victory Loan:
Nov. 1, 1924 98^2 and interest
Nov. 1, 1934 97
The prices of bonds had been kept down to these figures
owing to the large amounts coming on the market: —
Provincial bonds (Prov. Ontario) 5.60% to 5%%
Toronto bonds 5% %
Smaller cities 6%
Township bonds 6% to 6%%
County 6% to 5y8%
Tovm bonds 6% %
Village bonds eVa^ to 6%%
Weakness Around Midsummer
However, the market declined very rapidly and by June
the prices were about as follows: —
Victory Bonds:
Maturity. Price.
Dec. 1, 1922 99 and interest
Nov. 1, 1923 99 " "
Dec. 1, 1927 99% "
Nov. 1, 1933 99y2 "
Dec. 1, 1937 101
1919 Victory Loan:
Nov. 1, 1924 98 and interest
Nov. 1, 1934 96 " "
Provincial bonds (Prov. Ontario) 6% to 6%%
City bonds 6% % to 6.20%
Township or town bonds 6%% to 6%%
County bonds 6.40% to 6%%
Village bonds 6% to 6%%
Western Municipals in Bad Repute
I am not making any reference to the town bonds in the
provinces of Saskatchewan or Alberta. Owing to a number
of defaults by some of the municipalities in Saskatchewan and
Alberta, there is practically no market for these securities
whatever. It is fortunate that these municipalities have not
found it necessary to borrow very much money, as they would
have been faced with the position of finding their credit de-
stroyed and the market practically closed to them.
July and August were very dull months, and brokers
were looking forward to a fine market in the fall, when much
money seemed in sight on account of the excellent crops
promised. However, the crop was not sold as readily as ex-
pected, so that money did not become easy. On November 29th,
the minister of finance suddenly and unexpectedly aban-
doned the market committee controlling Victory bonds and
this had an unsettling eff"ect for a few days. On top of this,
the province of Ontario brought on an issue of $16,000,000 of
6 per cent. 15-year bonds, which were sold on a basis to yield
6% to 6.6 and 7 per cent., the lowest price Ontario bonds
ever sold at in Canada. This was handled with great rapidity
and in an unique manner by a syndicate of eighteen Toronto
bond houses. Inside of three days the whole issue was dis-
posed of, and was selling at a premium on issue price.
Stronger Market in December
Victory bonds recovered immediately they were thrown
on the open market, and within a week most maturities were
above the committee's prices. Towards the end of the year
the prices were as follows: —
January 7, 1921 THE MONETARY TIMES
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THE MONETARY TIMES
Volume 66
War loan— 1925 ■• 7%
" 1931 6.30%
1937 (N.Y. payment) . . 5.50%
Vict, loan— 1922 6%%
V 1923 6%%
" " 1924 7.20%
" 1933 6%
" " 1934 6.25%
" 1937 5.70%
Prov. of Ontario 6y2%
Toronto 6y2 %
Counties and township 6y2% to 6%%
Small cities and large towns 6%% to 7%
Villages 7% to 7% %
Western cities (Calgary, Regina
and Edmonton) 7yo% to 8%
The outlook for 1921 seems to be in the direction of
cheaper money and fewer issues of bonds by the many muni-
cipalities, but very large issues by the city of Toronto and
the province of Ontario. I would therefore, expect a notice-
able advance in the prices of all high-grade securities, barring
political troubles of a serious character which the growing
unemployment might bring about.
The following is a comparison of appro.ximate bond
prices since 1910: —
1910
Provincial Governments, about 3.90 per cent.
Large cities and counties, 4 per cent., 454 per
cent, to 4^8 per cent.
Large towns and townships, 4 1': per cent, to 4%
per cent.
Village bonds, 4% per cent, to 4% per cent.
1911
Provincial Governments, 4 per cent, to 3.90 per
cent.
Large cities and counties, 4V8 per cent., 4 '4 per
cent, to 4^8 per cent.
Large towns and townships, 4'/2 per cent., 4%
per cent, to 4 '4 per cent.
Village bonds, 4% per cent, to 4% per cent.
At the end of the year prices for Ontario bonds were
about as follows: —
Provincial Governments, 4 per cent, to 3.90 per
cent.
Large cities and counties, 4y8 Per cent., 4% per
cent, to 4|2 per cent.
Large towns and townships, 4'/2 per cent., 4%
per cent, to 4% per cent.
Village bonds, 4% per cent, to 5 per cent.
1912
Real estate boom commenced to fail.
Provincial Governments, 4'/^ per cent, to 4 per
cent.
Large cities and counties, 5 per cent, to AYz per
cent. Counties selling at about 5 per cent. City of
Toronto 4'. per cent, to 4% per cent.
Large towns and townships. 5'/4 per cent, to 5
per cent.
Village bonds, 5'/2 per cent, to 5'r per cent.
1913
Real estate boom collapsed. Hard times.
Provincial Government debentures sold as low
as a rate to yield 4.40 per cent.
Large cities and counties at 5% per cent, to 5
per cent. (Counties selling at about Sti per cent.,
city of Toronto at about 5!4 per cent, to 5 per cent.)
Large towns and townships from 6y2 per cent,
to 6 per cent.
Village bonds from 6?^ per cent, to 6'/2 per cent.
1914
August 1st. — The commencement of the great war. Ger-
man rush for Paris.
About March to May, 1914, the prices for debentures
ranged as follows: —
Provincial Government debentures, 4% per cent,
to 4(4 per cent.
City of Toronto, 434 per cent, to 4% per cent.
Ontario counties, 4% per cent, to 4% per cent.
Large Ontario towns and townships, 5 '4 per
cent, to 5 per cent.
Ontario village bonds, 5 ',2 per cent, to 5% per
cent.
Western city bonds, such as Calgary, Edmonton
and Regina, 5*8 Per cent, to 5 '4 per cent.
Smaller western towns sold from 6 per cent, to
5^4 per cent., and smaller places still from 6'/4 per
cent, to 6 per cent.
School districts and western villages from 7'/i
per cent, to 7 per cent.
1915
Great war and deadlock on west front. German advance
against Russia.
From March to about May prices reached their highest
level or lowest yield rate. At this time, Ontario provincial
bonds were selling to yield about 4.80 per cent.
City of Toronto, 4.95 per cent.
Ontario counties, 5 per cent.
Moderate Ontario cities, 5 '4 per cent, to 5'/8 PC
cent.
Large Ontario towns and townships, 5% per
cent, to 5'y4 per cent.
Ontario village bonds, 5% per cent, to 5'/2 Per
cent.
Western city bonds (Calgary, Edmonton, Re-
gina, etc.). about 6 per cent.
Smaller western towns, 6 '4 per cent, to 7 per
cent.
School districts and western villages, 7 '4 pcr
cent, to 7 per cent.
However, it was not long until these prices were ma-
terially changed, so tha-t in the fall of the year the prices
were about as follows: —
Provincial Government bonds (such as Ontario),
5'/4 per cent, to 518 per cent.
City of Toronto, 5?8 per cent.
Small Ontario cities, 5% per cent.
Good Ontario towns, 5*^ per cent.
Western cities (such as Saskatoon, Calgary, Ed-
monton), 6 '4 per cent.
School districts, 7 ','2 per cent.
Villages, 8 per cent.
1916
Supply of municipals limited; demand from a new mar-
ket, the United States, large. After marketing of war loan
in the fall, prices stiffened.
Dominion Government bonds yielding 5 '4 per
cent, to 5 '4 Pcr cent.
Province of Ontario bonds yielding 4.80 per cent.
British Columbia and Alberta bonds yielding
5! 2 per cent, to 5.30 per cent.
City of Toronto and Montreal bonds yielding 4.90
per cent, to 4.85 per cent.
Saskatchewan, Manitoba and medium-sized On-
tario cities bonds yielding 5.20 per cent, to 5.10 per
cent.
Ontario towns and townships bonds yielding 5%
per cent, to 5 '4 per cent.
Ontario village bonds yielding 5% per cent, to
5y2 per cent.
Western city bonds (Calgary, Edmonton, Re-
gina, etc.), yielding about 554 per cent.
Western school districts bonds yielding about
6 1/2 per cent.
January 7, 1921
THE MONETARY TIMES
125
Departments :
BONDS
MORTGAGES
RENTALS
INSURANCE
CITY REAL ESTATE
FARM LANDS
Pemberton & Son
FINANCIAL AGENTS
418 Howe Street
VANCOUVER, B.C.
Established 18S7
Mahan - Westman
Limited
Real Estate
Financial, Rental
ind
Insurance Agents
Property Management and Reliable
Reports Furnished
Address —
Mahan -Westman Building
432 Pender Street W.
VANCOUVER - B.C.
Dr. J. W. Mahan.
PrMidenI
J. A. Westman.
ManaKinK Director.
F. J. JAMES
G. H. SNEATH
NAY & JAMES
Bond Exchange Building
Regina, Canada
Municipal Debentures
Mortgage Investments
Real Estate
Insurance
CORRESPONDENCE INVITED
126
THE MONETARY TIMES
Volume 66
1917
United States entered the war in spring of 1917, so that
Canadian borrowing in that field practically ceased. Sim-
ilarly no help could be derived I'rom the United Kingdom.
Canada, had therefore, to be financed at home, and a domestic
war loan of over $400,000,000 was successfully floated in
November.
Dominion, 5!/2 per cent, to 5% per cent.
Province of Ontario, 5.90 per cent.
Large cities and counties, G per cent.
Medium-sized cities and towns in Ontario, 6!^
per cent, to 6 ',4 per cent.
Saskatchewan, Alberta and British Columbia
provinces, GYi per cent, to 6|4 per cent.
1918
Province of Ontario 6's, par to 100 '/j.
Western Provinces bonds, to yield about 6 '4 per
cent, to 6.20 per cent.
Ontario large cities, to yield 6 per cent.
Ontario large towns and small cities, to yield
6 14 per cent, to G'/j per cent. Ontario counties, to
yield 6 per cent. Ontario small towns and townships,
to yield 6 '2 per cent, to 6!4 per cent.
Large cities in the west, to yield 6V4 per cent.
Large towns in the west, to yield 7 per cent.
School districts in the west, to yield 7 per cent.
1919
Province of Ontario, to yield 5.10 per cent.
Western Provincial bonds, to yield about 5.20 per
cent.
Ontario towns and cities, to yield about 5.10 to
.■>.05 per cent.
Large Ontario towns and smaller cities, to yield
.j.2,'') to S'/s per cent.
Small Ontario towns, to yield about 5% to 5'/2
per cent.
Large cities in the west, to yield about 5% to
5% per cent.
Large towns in the west, to yield about 6 per
cent.
School districts in the west, to yield about 6.25
to 6Ys per cent.
1920
Province of Ontario, to yield 6.40 per cent.
Toronto, Hamilton and Ottawa, to yield 6'/2 P*""
cent.
Counties and townships, to yield 6'/2 to 6% per
cent.
Small cities and large towns, to yield 6% to 7
per cent.
Villages, to yield 7 to 714 per cent.
Western cities (Calgary, Regina' and Edmon-
ton), to yield 7Vt to 8 per cent.
Record Number of Large Companies Incorporated
Riordon Company, Gatineau Company and Laurentide Company Head
List as Regards Authorized Capital — Mining, Manufacturing, Trading
and Finance all Represented in List of Ten Million Dollar Corporations
l^yf ILLION-DOLLAR corporations are yearly becoming more
■^'■■- numerous in Canada. In fact it is ten-million-dollar
companies which are now taking the lead in large-scale
operations. The following list of companies incorporated in
1920 (up to December 1) with authorized capital of $10,000,-
000 or over, illustrates how varied are the fields in Which
these huge companies operate: —
Canadian Fish Products, Ltd., Halifax, $15,000,000; Inter-
national Petroleum Co., Ltd., Sarnia, $20,000,000; British Co-
lumbia Sugar Refining Co., Ltd., Vancouver, $10,000,000; Brit-
ish Foundation Ovens, Ltd., Montreal, $10,500,000; Consoli-
dated Asbestos, Ltd., Montreal, $10,000,000; Laurentide Co.,
Ltd., Montreal, $35,000,000; Partners Securities Corp., Ltd.,
$10,000,000; Beige Paper Co., Ltd.. $15,000,000; Dominion En-
gineering Works, Ltd., Montreal, $10,000,000; Gatineau Co. Ltd.,
Montreal, $45,000,000; Belgo Paper Co., Ltd., Montreal, $20,-
000,000; Riordon Co., Ltd., Montreal, $80,000,000; Mount Royal
Hotel Co., Ltd., Montreal, $10,000,000; Northem Mexico Power
and Development Co., Ltd., Toronto, $13,000,000; Famous Play-
ers Canadian Corp., Ltd., Toronto, $15,000,000; Provincial
Paper Mills, Ltd., Toronto, $10,000,000; Anglo-American Mo-
tors, Ltd., Toronto, $10,000,000; Brazilian Development Corp.,
Ltd., Toronto, $50,000,000; Fort William Paper Co., Ltd., Tor-
onto, $15,000,000; Canadian Associated Goldfields, Ltd., Tor-
$30,000,000.
The ten-million-dollar list in 1919 was much smaller, being
as follows: —
The Lake Huron Steel Corp., Ltd., Goderich, $15,000,000;
Goodyear Tire and Rubber Co. of Canada, Ltd., New Toronto,
$30,000,000; Kipawa Co., Ltd., Montreal, $20,000,000; United
States Rubber Co. of Canada, Ltd., Montreal, $20,000,000; Sir
Mortimer Davis, Inc., Montreal, $10,000,000; British foundation
Ovens, Ltd., Montreal, $15,000,000; Havana Marine Terminals,
Ltd., Montreal, $30,000,000; Simmons, Ltd., Montreal, $10,000,-
000; Allied Packers of Canada, Ltd., Toronto, $10,000,000;
International Bushings, Ltd., Toronto, $25,000,000; Canadian-
American Resources, Ltd., Toronto, $50,000,000.
A record number of companies with capital of $1,000,000
and over was organized in 1920. The list (up to December
1st) is as follows: —
Alberta
Calgary. Alta.— Davis Dabro Farm and Ranch Co.. Ltd., $1,500,000; Mc-
Laws Co., Ltd., $1,250,000; Bldon Mines, Ltd., $1,000,000; Mud Butte Oil Fields,
Ltd., $1,000,000; Coast Timber and Trading Co., Ltd., $1,000,000.
Edmonton, Alta.— Gillespie Grain Co., Ltd., $1,500,000; San Francisco and
McMurray Oil Refining Co., Ltd., $3,000,000.
Peace River, Alta.— Peace River Western Oil Co., Ltd., $3,000,000.
British Columbia
Cranbrook, B. C— Spruce Mills, Ltd., $1,000,000.
Grand Forks, B. C— Union Mining and Milling Co., Ltd., $1,000,000.
Grant, B. C— Manoose-Weilington Collieries, Ltd., $3,000,000.
Nelson, B. C— Texas Yanliee Girl Mines, Ltd., $2,000,000.
New Westminster, B. C— Bucklin Development Co., Ltd., $2,500,000.
Prince Rupert, B. C— Alice Arm-La Rose Mining Co., Ltd,, $1,000,000.
Sapperton, B. C— Brunette Sawmills, Ltd., $2,000,000.
Victoria, B. C— British Columbia and Albert Power Co., Ltd., $1,000,000 ;
Victoria-Phoenix Brewing Co. (1920), Ltd.. $1,000,000,
Vancouver, 8. C— Vancouver Milling & Grain Co., Ltd., $1,000,000; Won-
derphone. Ltd., $1,000,000; Silver Tip Mining & Development Co., Ltd., $1,-
000,000; National Silver Mines, Ltd.. $1,500,000; Mahood Mines, Ltd., $1,000,-
000; J. Coughlan & Sons, Ltd.. $3,000,000; McLennan Sliver Mines, Ltd.,
$1,500,000; North West Silver Mining and Development Co., Ltd., $1,000,000;
Marshall- Wells, B.C., Ltd., $1,000,000; James Logging Co., Ltd., $2,000,000;
Williams Logging Co., Ltd., $1,000,000; Lucky Strike Silver Mines, Ltd., $1,-
000,000; British Columbia Sugar Refining Co., Ltd., $10,000,000; Marsh Mines
Development Co., Ltd., $1,500,000; Dally Coal and Oil Syndicate, Ltd., $1,-
100.000; B. W. G. Navigation Co., Ltd., $1,000,000; Liberator Mining Co., Ltd..
$1,000,000; Mexlcanda Petroleum,, Ltd.. $1,000,000; British Columbia Marine
Engineers and Shipbuilders, Ltd., $1,000,000; Canadian Flashlight, Ltd., $2,-
000,000; Pacific-Atlantic Construction Co., Ltd., $5,000,000.
Manitoba
The Pas, Man.— The Pas Oil, Development and Exploration Co., Ltd.,
$2,000,000; Lake Athapapuskow Minerals, Ltd., $1,000,000.
Winnipeg, Man.— Commonwealth Gold Mines, Ltd., $2,000,000; Victory
Gold mines, Ltd.. $3,000,000; The Pas Lumber Co., Ltd., $1,000,000; Bingo
Mines, Ltd., $2,000,000; Canadian Mortgage Association, Ltd., $5,000,000; Gra-
phite & Gold Mines, Ltd., $1,000,000; Bonanza Mining Corporation, Ltd.,
$2,500,000; Motherlode Mines, Ltd., $3,000,000; Stinson Auto Signal. Ltd.,
$1,000,000; Canadian and General Securities, Ltd., $1,000,000; Wolverine Gold
Mines. Ltd., $3,000,000; Eternal Battery Co. of Canada, Ltd., $1,000,000;
Lake Winnipeg Pulp, Paper & Lumber Co., Ltd., $2,500,000; Deep Rock Gold
Mines, Ltd., $2,500,000; Ang\is McDonald Mines, Ltd., $3,000,000; Copper
Lode Exploration Co., Ltd., $2,000,000; Canada Fibre Products, Ltd.. $1,000,-
000; Winnipeg Motor Cars, $1,000,000; Parker Motor Car Co., Ltd.. $3,000,000;
Tribune Newspaper Co., Ltd.. $1,000,000; Traders' Finance Corp., Ltd..
$3.000,000 ; Community Loan and Investment Co. of Canada. $4,500,000 ; Mam-
January 7, 1921
THE MONETARY TIMES
127
INVESTMENTS
I 'HE present condition of the financial market
•'• affords the investor greater opportunities for
the safe and profitable investment of funds than
for several years past.
Many excellent issues are at present selling below^
their intrinsic value.
Our purpose is to co-operate with our clients in
taking advantage of these exceptional conditions.
CANADA INDUSTRIAL BOND CORPORATION, LIMITED
Citizen Building,
OTTAWA
Lewis Building,
MONTREAL
THE CITY OF WINNIPEG
OFFERS
$1,500,000.00
30-Year 6 Per Cent.
HYDRO BONDS
at $96.63
Maturing June 1st, 1950,
Yielding 6', Per Cent.
Iiitfiest Paxablf June Ist and Deceniher 1st
In Denominations of $100, $500, $1000
For full particulars apply to
CUij tight aTbuiQT
WINNIPEG
MANITOBA
THE MONETARY TIMES
Volume 66
molU iMiumg Corp.. Ltd., iJ,iJOU,UUO; A. MacUuuiiia & Co., Ltd., $1,000,000,
Canadian i'catuie and Troductlon Co., Ltd., $1,000,000; Peudennls Gold Min-
ing and Reduction Co.. Ltd., $1,000,000.
New Brunswick
St. John. N. B.— Nocton Investment Co.. Ltd., $5,000,000; Uot«l Cham-
Co., Ltd., $2,000,000.
Nova Scotia
Annapolis Royal, N. S.— Inicnuitiunal (;ji)sum Coiii.. Ltd., $1,150,000.
Bear River, N. S.— Clark Bros. I'aper Mills, Ltd., $5,000,000.
Halifax, N. S.— Ciinadlan Fish Products, Ltd.. $15,000,000.
Ontario
Alliston, Ont.— AUistou Gold Mines, Ltd., $1,000,000.
Aylmer, Ont.— Trans-Canadian Oil Co., Ltd., $5,000,000.
Brantford, Ont.— Ulue Bird Corporation, Ltd., $1,000,000; Ham Bros. Co.,
Ltd., $1,000,000; Ontario Cement Co., Ltd., $1,000,000; Brantt'ord Computing
Scales, Ltd., $1,000,000.
Cobalt, Ont.— Lightning River Gold Mines, Ltd., $3,000,000.
Fort Frances. Ont.— J. A. Mathieu. Ltd.. $1,000,000.
Goderich. Ont— Alk.vris Mines, Ltd., $1,000,000.
Gowganda. Ont.— .Miller Lake Silver Star Mines, Ltd., $2,000,000.
Guelph, Ont— Commerce Motor Trucks, Ltd., $1,500,000.
Hailcybury. Ont.— Northland Gold Mines, Ltd., $2,000,000; Bousquet Gold
Mliii-.s. l.lil.. .52,000,000.
Hamilton, Ont.— Beaver Motor Truck Corp., Ltd., $1,000,000; Wm. South-
am .V .Suns. Ltd., $5,000,000; Firestone Park Housing Co., Ltd., $1,000,000;
John 1". WJiclau, Ltd., $2,000,000; Stanley Mills Co., Ltd., $1,50,000; Universal
rroducts. Ltd., $3,000,000.
Ingersoll, Ont.— IngersoU Machine & Tool Co., Ltd., $1,000,000.
Kapuskasing, Ont.— Spruce Falls Co., Ltd.. $7,000,000.
Kingston, Ont.— Canada River Steamship Co., Ltd., $1,700,000; Kingston
Smelting and Reflning Co., Ltd., $1,000,000.
Kirkland Lake. Ont.— Lebel Crystal Lake Gold Mines, Ltd., $3,000,000.
London, Ont.— McCormick Manufacturing Co., Ltd., $2,000,000; Metro-
politan Store. Ltd. $1,000,000; Ruggles Motor Truck Co., Ltd., $3,000,000.
Midland. Ont.— Copeland Flour Mills, Ltd., $2,000,000.
New Liskeard. Ont.— Pan-Oceanic Power development Co., Ltd., $1,000,000.
Niagara Falls. Ont.— Alpine Silver Mines, Ltd., $2,000,000.
Ottawa. Ont.— Continental Paper Products, Ltd.. $1,000,000; W. H. Dwyer,
Ltd.. $! .000,000; International Prospecting and Developing Co., $1,000,000;
Ottawa Nukol Co., Ltd., $1,000,000.
Perth. Ont.— Henry K. Warapole & Co., Ltd.. $2,000,000; Perth Shoe
Co., Ltd., 51,000,000; .Uidrew Jergens Co., Ltd., $1,000,000.
Peterboro, Ont.— I'eterboro Cereal Co., Ltd., $1,000,000.
Port Arthur. Ont.— Nipigon Fibre & Paper Mills, Ltd., $1,000,000.
St. Catharines. Ont.— Victory Silver .Mines, Ltd., $2,000,000; J. H. Wil-
liams A: Co., Ltd., $2,000,000. ,
St. Thomas. Ont.— "Nobility Chocolates" Co., Ltd., $1,000,000; Appleford
Milk Products. Ltd., $1,000,000.
Sarnia. Ont.— Regent Mines, Ltd., $1,000,000; International Petroleum
Co., Ltd., $20.0011,000.
Sault Ste. Marie. Ont.— International Screencraft Co., Ltd., $1,500,000.
Toronto, Ont.— Interlake Tissue Mills Co., Ltd., $1,000,000; SaUda Tea
Co. of Canada', Ltd., $2,000,000; March Gold, Ltd.. $1,500,000; Silver Bullion
Mines. Ltd., $1,500,000 ; Bidwell Oil & Gas, Ltd., $1,000,000 ; Rosedale Securi-
ties, Ltd., $2,500,000; Lack Munroe Mining Co., Ltd., $2,000,000; Southdrive
Sectu-ities, Ltd., $1,000,000; Wood-Kirkland Gold Mines, Ltd., $2,000,000;
Schofleld Tractor Corporation, Ltd., $1,000,000; Hargrave Consolidated Mines,
Ltd., $2,500,000; Swedish-Canadian Mines, Ltd., $3,000,000; Hughes-McElroy
Gold Mines. Ltd.. $2,500,000; Western Pulp & Paper Co., Ltd., $1,000,000;
Thesaiu-us Gold Mines, Ltd., $1,000,000; Dutferin Oil Co., Ltd., $1,000,000;
Northern Mexico Power and Development Co., Ltd., $13,000,000; Dominion
Shipbuilding and Repair Co., Ltd.. $3,000,000; Canadian Paramount Corpora-
tion, Ltd., $5,000,000; Frame Porcupine Mines, Ltd., $1,500,000; Wasapika
Consolidated Mines, Ltd., $6,000,000; Northern Customs Mines, Ltd., $1,000,000;
Trent Paper Co., Ltd.. $1,000,000; Bancroft Timber Co., Ltd., $1,000,000; Fam-
ous Players Canadian Corporations, Ltd., $15,000,000 ; North Anierican Securi-
ties, Ltd., $3,000,000; Tropical Products. Ltd., $1,000,000; Davies Footwear
Co., Ltd., $1,000,000; Renew Tire Corporation of Canada, Ltd., $1,000,000;
Tiger Tire & Rubber Co., Ltd., $2,000,000; Moffats, Ltd., $1,000,000; Gibson
Gold Mines, Ltd., $1,000,000; Silverado Extension, Ltd., $1,500,000; Bailey Sil-
ver Mines, Ltd.. $1,250,000: Biemark Oil Co., Ltd., $1,000,000; Union siining
Corporation, Ltd.. $1,000,000; Loevv's Windsor Theatres, Ltd., $1,300,000; Pin-
elle Kirkland Mines. Ltd.. $4,000,000; Silbar Cobalt Mines. Ltd., $1,500,000;
King Kirkland Gold Mines, Ltd., $2,500,000; Adfllm Co., Ltd., $2,000,000; Na-
tional Pavements of Canada. Ltd., $5,000.000 ; Chemical Products. Ltd.,
$5,000,000; Algomont Mines, Ltd., $4,000,000; Ontario National Pavements,
Ltd., $1,000,000; Northcrown Porcupine Mines, Ltd., $3,000,000; Provincial
Paper Mills. $10,000,000; Ductite Steel Co.. Ltd., $1,500,000; Sugars of Can-
ada. Ltd., $2,000,000: Ryan Antiglare Light Co., Ltd., $1,000,000; Lebel
Ore Mines. Ltd.. $1,500,000: Teldarb Manufacturing Co., Ltd., $1,000,000;
Ovrob Steel Products. Ltd., $1,000,000 ; Ontario and Peace River Oil and Gas
PrnduciiiK Co.. Ltd.. 52.500.000; Automobile Club of Canada, Ltd.. $1,200,000;
Harvey-Kirklarid Cold Mines, Ltd., $1,500,000; Dominion Chocolate Co., Ltd.,
$2,000,000; Canadian Radio Corporation, Ltd., $5,000,000; Petrol Oil and Gas
Co., Ltd., $1,000,000; Tropical Food and Chemical Co., Ltd., $1,000,000; Auto-
strop Safety Razor Co., Ltd., .$1,500,000; Kaminlstiqua Pulp & Paper Co..
Ltd.. $1,000,000; Hamilton B. Wills and Co., Ltd.. $1,000,000; Manufacturers'
Holding and Investment Corp., Ltd., $2,000,000; Canada Gas and Fuel Co.,
Ltd., $3,000,000; Mauson Motors. Ltd.. $1,500,000: Canadian Paper Board Co.,
Ltd., $5,000,000: Willards Chocolates, Ltd., $3,250,000; Iroquois-Kirkland Mines
Corp., Ltd.. $2,000,000: Midwest Development Co.. Ltd., $3,500,000; United
Trading Corp., Ltd., $1,000,000; Page-Hersey Tubes, Ltd., $4,300,000; Anglo-
American Motors, Ltd.. $10,000,000: Superheater Co., Ltd., $1,000,000; Bra-
zilian Development Corp., Ltd., $50,000,000; Progressive Gold Mines. Ltd.,
$2,000,000; Brant-Keora Mining Co.. Ltd., $2,000,000; Oak Tire and Rubber
Co., Ltd., $3,000,000: Canadian Edison Appliance Co., Ltd., $1,000,000; Exide
Batteries of Canada, Ltd.. $1,050,000; American de Levaud Manufacturing
Co.. Ltd.. $7,500,000; Mohawk Trading Corp., Ltd., $1,000,000; Canadian Farm
Power and Machinery Co., Ltd., $1,000,000; Fort William Paper Co.. Ltd..
$15,000,000; Universal Gas and Oil. Ltd.. $1,500,000: Canadian Associated
Gnldflelds, Ltd., $30,000,000; Canadian Timber Co.. Ltd.. $1,000,000; Fulton
Motors. Ltd.. $2,000,000; Don Valley Brick Works. Ltd.. $1,000,000; Dvrob
Steel (Consolidated). Ltd.. $1,000,000; Canadian Libhey-Owens Sheet Glass
Co., $1,680,000; Mortgage Discount and Finance, Ltd.. $2,000,000: Manitoulin
Oil Co., Ltd., $1,000,000; Kilgour Bros., Ltd., $2,500,000; British-American
Finance Corp.. Ltd., $1.500,000 : InterlocMng Cord Tire and Belt Co., Ltd.,
$1,500.000 ; Burkells, Ltd., $1,000,000.
Welland. Ont.— Wallace Securities. Ltd.. $1,000,000.
Windsor, Ont.— Victory Motors, Ltd., $1,000,000; Burroughs Machines.
Ltd.. Sl.000.000; Border Cities Hotel Co.. Ltd.. $l,,50O.00O.
Quebec
Breakeyville, Que.— John Breakey, Ltd., $8,000,000.
Drummondville. Que.^Ienckes Canadian Co., Ltd., $3,000,000.
Granby, Que.— United Maple Products, Ltd., $1,000,000.
Montreal, Que.— British Foundation Ovens, Ltd., $10,500,000; Consoli-
dated Asbestos, Ltd.. $10,000,000; Eiiuitable Finance Corporation, Ltd., $2,-
000,000; Laurentide Co.. Ltd.. $35,000,000; Tractor and Implement Co., Ltd.,
$1,000,000; Canadian Carbonate, Ltd., $1,000,000; Canadian Fur Auction Sales
Co., Ltd., $5,000,000; A. & E. Pierce & Co., Ltd., $1,000,000; Canadian Man-
hasset Cotton Co., Ltd., $3,000,000; Globe Shipping Corporation, Ltd., $1,000,-
000; Canadian Electric Steel, Ltd., $5,000,000; Rubber Co. of Canada, Ltd.,
$2,000,000; L. G. Bcaublen & Co., Ltd., $1,000,000; North American Magne-
site Producers, Ltd., $1,000,000; Canadian Mead-Morrison Co., Ltd., $1,060,000;
Forster Motor Car & Manufacturing Co., Ltd., $1,000,000; Patenaude-Carig-
nan & Co., Ltd., $2,500,000; J. S. Fry & Sons (Canada), Ltd., $1,000,000;
Anson Securities Corporation, Ltd., $5,000,000; Canadian American Copper
ReSning Co., Ltd., $5,000,000; Lord Strathcona Steamship Co., Ltd., $1,500,000;
Partners Securities Corp., Ltd., $10,000,000; Tabah Cousins, Ltd., $1,000,000;
J. C. Wilson, Ltd., $2,500,000; Canadian Manhasset Cotton Co., Ltd., $3,000,000;
Windsor Phonograph and Record Co., Ltd., $1,000,000; Hartt & Adair Coal
Co., Ltd., $2,000,000; Canadian Films, Ltd., $2,000,000; J. C. Asch Holdings,
Ltd., $2,500,000; His Master's Voice, Ltd., $1,500,000; Canadian Pulpwood
Corporation, Ltd., $1,000,000; Hillcrest Apartments Incorporated, $1,000,000;
Patricia Photoplays, Ltd., $1,500,000; Walter M. Lowney Co. of Canada, Ltd.,
$2,000,000; Wolf River Pulp and Paper Co., Ltd., $1,000,000; Black Star Line
of Canada, Ltd., $1,000,000; Wilson, Paterson & Giftord, Ltd., $1,000,000;
Canadian Pulp & Paper Investments, Ltd., $1,000,000; Hall Research Corp.,
Ltd., $4,000,000; Beige P.aper Co., Ltd., $15,000,000; General Cigar Co., Ltd.,
$5,000,000; Consolidated Sand and Supply Co., Ltd., $1,000,000; William L
Bishop, Ltd., $1,000,000; Dominion Engineering Works, Ltd., $10,000,000;
Bridge River Timber and Manufacturing Co., Ltd., $1,200,000; F. H. Hop-
kins & Co.. Ltd., $1,000,000; Dent, Allcroft & Co., Ltd., $1,500,000; Sea-Sled
Co., Ltd., $1,160,000 ; Jas. Smart Manufacturing Co., Ltd., $2,000,000 ; Ames
Holden Rubber Boot Co., Ltd., $3,000,000; Coristine Realties, Ltd., $2,000,000;
Dominion Cottons, Ltd., $5,000,000; Lovell & Christmas, Ltd., $1,000,000;
Holt, Ltd., $5,000,000; Quebec Petroleum and Natural Gas Co., Ltd., $5,000,000;
Traders Sugar Co., Ltd., $1,000,000; Copper Products, Ltd., $3,000,000;
Finance and Industries, Ltd., $1,000,000; Canadian Street Car Advertising
Co., Ltd., $1,400,000; Gatineau Co., Ltd., $45,000,000; Grolier Society, Ltd.,
$1,000,000; Belgo Paper Co., Ltd., $20,000,000; D. G. Loomis & Sons, Ltd.,
$1,300,000; Dunn's Auto Markers, Ltd., $1,000,000; Rose Castle Steamship
Co., Ltd., $1,500,000; Birks Buildings, Ltd., $2,000,000; Riordon Co., Ltd.,
$80,000,000; Joliette Castings and Forgings. Ltd., $1,000,000; Mount Royal
Hotel Co.. Ltd., $8,000,000 ; Canadian Tube and Steel Products, Ltd.. $5,000.-
000; Equitable Finance Corp., Ltd., $1,100,000; Consolidated Distilleries, Ltd.,
$5,000,000; Metropolitan Investment Co., Ltd., $1,000,000; Darling Bros., Ltd.,
$1,250,000: B. Gardner & Co., Ltd., $1,000,000; Mount Roval Hotel Co., Ltd.,
$10,000,000; Airtight Valve Co., Ltd., $3,000,000; Lake St. John Pulp and
Paper Co., Ltd., $4,000,000; North Country Exploration and Mining Co., Ltd.,
$1,000,000; Three Rivers Pulp and Paper Co., Ltd., $4,400,000; St. Denis
Building, Ltd., $1,000,000; Wlser's Distillery, Ltd.. $3,000,000; Magulre,
Patterson and Palmer (Canada), Ltd., $5,000,000; Canadian Electrical Corp.,
Ltd., $1,000,000; Kraft MacLaren Cheese Co.. Ltd., $1,000,000; Ormes Steam-
ship Co., Ltd.. $1,000,000 ; Jas. Carruthers and Co., Ltd., $1,000,000.
Quebec. Que.— Great Eastern Pulp & Paper Co., Ltd., $8,000,000; Clarke
Trading Co.. Ltd.. $1,000,000.
Richmond. Que.— Richmond Wire & Iron Co., Ltd., $1,000,000.
Rigaud, Que.— Northern Explosives, Ltd., $1,500,000.
Saskatchewan
Indian Head, Sask.— Glenn Farms, Ltd., $1,000,000.
Regina. Sask.— Sterling Securities Corp., Ltd., $1,000,000.
PROTECTION OF SAFETY DEPOSIT VAULTS
Trust companies and other firms renting safe deposit
boxes have taken extra precautions during the past few
months to meet the epidemic of hold-ups and robberies. At
least one repository where citizens lieep their Victory bonds,
stock certificates, wills and other valuable and private papers,
and which a boxholder visited the other day for the first
time in weeks, had doubled its precautions. The newcomer
thought the place was closed. The big door of steel bars
was shut, and before it stood a man on guard. The visitor
was admitted and the door carefully closed behind him. In
the vault chamber itself he did not as formerly open his own
box, but an attendant did this for him, putting the steel
drawer back again in it; plac?. Ii thi . par icu'.ar safety
vault such additional precautions have been in vogue for two
weeks.
NEWFOUNDLAND COAL AREAS
Active steps to develop one of the bituminous coal areas,
which for more than sixty years have been known to exist
in the island, are being taken by the Newfoundland govern-
ment. Preliminary work has been started on the deposit on
the south branch of the Codroy River, on the west coast of
the island, as a result of data provided by an oflicial of
the Canadian Geological Survey, who recently examined the
property.
All the bituminous coal now used in Newfoundland comes
from Cape Breton. This is used for the operation of rail-
roads, factories, mills and steamers. A moderate amount of
anthracite is imported from the United States for use in
homes and public buildings.
January 7, 1921
THE MONETARY TIMES
129
BllllllllllllllilllllllillllllllllilllllllllllllllllllllllllllllllllllllllllllllllllllllllllH
uiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiDiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiii^
SASKATCHEWAN
Rich in Natural Resources ; Pre-eminent in Agricultural Production ; Pro-
gressive in Methods of Farming and Marketing the Products of the Farm ;
and Progressive in Legislation. Saskatchewan needs more Men and more
Capital to develop the vast Potential Wealth of this Great, New Province
Agricultural Production Natural Resources
rops hav
nU-tl
for th
wheat crop
Saskatchewan
over half the wheat crop
Canada and leads in quality as
well as quantity. Saskatchewan
farmers winning the world's
prize for wheat eiprht times in
the past nine years.
Saskatchewan holds third
place in the Dominion in the
number of its live stock, and
holds first place for horses and
in the number of pre-bred
stallions enrolled, these includ-
ing the leading heaN-y draft
breeds. Great progress has
been made in raising the stand-
ard of all breeds of live stock
and the breeding of pure-bred
horses, cattle, sheep and swine
has been greatly assisted and
encouraged by the Provincial
Department of Agriculture and
the various Live Stock Associa-
The dairying industry is
making splendid progress. A
decade ago, Saskatchewan was
importing butter by the carload.
In 1919 and 1920 the province
exported over two hundred car-
loads of government-inspected
creamery butter which com-
mands a high price on both
eastern and western markets.
There are between 94.000.000
and 100,000.000 acres of arable
land in the province, less than
one-third of which have yet
been brought under cultivation.
lHlti-1920 inclusive. Saskatchewan's cereal
to 1,619,041.000 bushels. Saskatchewan's
period amounted to 750,000,000 bushels,
produces
^iinimiii:i:iuiiuuiiiiiiiiitnninii]iiiiji!iaiiiiiiiiiiiii:iiinuniiiuiiimiuiiiuiuiiiiiiiiiii^
Isaskatchewan has billions of
the province covering an a
all the known coal deposits
I AREA I
i 251,700 square miles. i
1 POPULATION I
1911 census 492.432 j
I9I6 census 647.835 |
2 Provincial estimate 1920 833,267 |
^ PUBLIC DEBT. |
i Gross Debt $ 41,549,480.87 |
I Less debt created for utilities. i
^ etc., which carry public debt 1
I charges $20,808,801.52 |
t Sinking funds created for the re- 1
§ demption of debt incurred for §
I other than utilities 324,442.30 |
I I 22,133^43.82 |
I Net Debt $ 19.416.237.05 |
I PROVINXIAL ASSETS. |
I Lands and buildings, public improvements, utili- i
i ties and investments, cash in bank and 1
j sinking funds $ 75.504,032.78 |
I TOTAL ASSESSABLE VALUE. |
g Estimated assessable value of all property I
i within the province $1,500,000,000.00 j
iiiiiiii[iiiiiiiiiii!!ii]iiiriiiiiiiiiiiii[iratiii]iiimiiiiiiinniiiii[iii)iiiii[[M^^^^^^ iiiiiitiiiitiiiinininmiiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiuiitiiiiil
tons of coal, the coal formations
rea of over 4,000 square miles,
are of the lignite variety, which
slacks when exposed to the air
for any length of time, a Lignite
Utilization Plant has been con-
structed by the Saskatchewan
and Manitoba governments and
the Dominion government to
demonstrate a method of car-
bonizing and briquetting lignite
coal. If the process cqn be put
into general commercial prac-
tice, Saskatchewan's vast fields
of lignite will become a tre-
mendously valuable asset.
The clay resources of the
province are so extensive and
varied that it is impossible to
give definite information until a
complete analysis of the various
deposits has been made. Three
deposits of "ball" clays suitable
for manufacturing chinaware.
and five deposits of white burn-
ing clays have already been
discovered. The province excels
in the quality and quantity of
its fireclays, and has other de-
posits from which can be manu-
factured practically the whole
range of structural clay pro-
ducts.
Enough sodium sulphate to
supply the world market for a
hundred years ; deposits of
silica sand,* 999J- pure; dis-
coveries of gold, silver, copper
in the far north which as yet
are merely reports of pros-
pectors ; a forest belt over a
hundred miles wide extending
from east to west across the
entire province, all point to
important sources of wealth for
future industrial development.
The Saskatchewan Government
SIR RICHARD LAKE— Lieutenant-Governor.
HON. W. M. MARTIN— Premier. President of Council, Minist
Education and MinUter of Railways.
HON. W. F. A. TURGEON— Attorney General.
HON. A. P. McNAB— Minister of Public Works.
HON. G. LANGLEY— Minister of Municipal Affairs and Mil
in charge of Bureau of Public Health.
HON. C. A. DLNNINC — Provincial Treasurer and Minuster in
Charge of Bureau of Labor and Industries.
HON. S. J. LATTA— Minister of HiBhways and Minister in Charge
of Office of King's Printers.
HON. W. E. KNOWLES— Provincial Secretary and Minister of
Telephones.
HON. C. M. HAMILTON— Minister of Agriculture.
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130
THE MONETARY TIMES
Volume 66
ELECTRICAL WORKSHOP BEING ESTABLISHED
Canada Has Eighty Per Cent, of the Power in the British
Empire, and is Surpassed Only by United States —
Possibilities for Further Use in Railroad
Operation and in Industry
By G. W. Austen
WHEN Lord Desborougrh, chairman of the British Empire
Chambers of Commerce, went back from Canada to Brit-
ain he loudly proclaimed his belief that Canada's water-powers
would make this country ultimately predominant in manufac-
turing. He bade the people of the mother country beware of
their accustomed industrial superiority. Canada itself, in his
opinion, did not realize what precious assets it had.
Electrical development from water-powers has reached a
more advanced stage in Canada, in proportion to population,
than in any other country in the world. The United States de-
velops about 30,000,000 horse-power, but of this only 7,000,000
horse-power is from waterfalls. Canada develops a total of
2,400,000 horse-power, virtually all from water-powers. The
average cost of power in Ontario is about $12 to the produc-
ing company now, and the price to industrial concerns from
$16 to $20 a horse-power. A cost of $60 is common in New
York state, and very few of the American installations are
capable of selling power at less than double the price asked
by the hydro-electric system in Ontario or by some of the
large Quebec producers which have a surplus for sale.
Greatest Sources in Empire
The water-powers of the British empire are very large,
but Canada has the predominant share. Britain has developed
from them only about 200,000 horse-power, India 142,000, Aus-
tralia 130,000, New Zealand 60,000, while Canada has devel-
oped 2,400,000, and has much larger development coming.
The Chippawa project alone is expected to produce 350,000
horse-power more in two or three years.
If Canada has 80 per cent, of the water-powers of the
British Empire it likewise stands high in comparison with
foreign countries. It has nearly five times as much power
development as Austro-Hungary, eight times as much as Bra-
zil, twice as much as France, four times as much as Germany,
one and a half times as much as Italy, twice as much as Nor-
way, twice as much as Sweden, and two-fifths as much as the
United States.
Distribution by Provinces
The Canadian development by provinces is estimated offi-
cially:— Per thousand
Horse-power, population.
British Columbia 312,482 506
Alberta 32,080 63
Manitoba 76,172 133
Ontario 985,060 359
Quebec - 842,761 376
New Brunswick 14,869 41
Nova Scotia 26,024 51
Prince Edward Island 1,729 19
Yukon 13.392 1,574
2,305,310 276
The water-powers of Canada are estimated at nearly 20,-
000,000 horse-power. Of this British Columbia has 3,000,000,
Alberta 466,000, Saskatchewan 567,000, Manitoba 3,218,000,
Ontario 5,800,000, Quebec 6,000,000, New Brunswick 300,000.
Nova Scotia 100,000, Yukon 100,000. Surely this indicates as
nothing else the industrial possibilities ahead of this country,
especially when coal is becoming scarce and will always re-
main fairly high. In Britain, where the cost of coal is $15 a
ton for domestic purposes, about 80,000,000 tons yearly are
used to produce electricity. The cost of power varies from
$50 to $100 per horse-power. Bituminous coal was $15 a
ton in Ontario this summer, but now has taken a considerable
drop, but anthracite coal at $17 has not weakened, nor is it
likely that the price will go back to less than $12 for many
years, or until the freight-rate situation and the exchange sit-
uation have righted themselves. The water-produced power
in Ontario alone has saved 2,000,000 tons of coal, at an esti-
mated value of about $25,000,000, in the last year. Our coal
import bill of $70,000,000 can be cut down by a much larger
utilization of power, and probably will be when large installa-
tions, permanent supply and a low price give assurance to
large industrial concerns that they may safely forsake coal and
put their faith on electricity.
Electrification of Railways
One of the problems Canada will have to face in the near
future is that of electrification of many of the steam railway
lines. Railway engineers point out that, considering the cap-
ital cost of the change, it cannot be profitably done at present.
The capital could not be obtained at reasonable rates. But
the coal bills of the railways are evidence enough of the saving
that could be effected in operating costs if the electrical equip-
ment were once installed. The experience of the Chicago,
Milwaukee and St. Paul in electrifying 440 continuous miles
is distinctly in favor of the economy of the electrical system
For the last three months of 1915, at $4 a ton for coal, the
coal cost was $200,000. The electric power for the three cor-
responding months of 1916 cost $88,000. In equipment the
saving is more than half.
If Ontario had enough power from Niagara Falls the
whole steam railway system of southern Ontario could be elec-
trified, with far lower operating costs. But, of course, the
cost of the transfer is a gigantic item, and at present nothing
is likely to be done. The cost of the proposed hydro-radial
system is so exorbitant that failure for it is feared, not on ac-
count of lack of traffic, but excessive capital charges. The steady
growth of power development is, however, tending always to
stimulate investigation in industrial and transportation sav-
ings, and if in the years to come industry gets sufficient power
transportation may well look into the problem. If, as the
records of the Chicago, Milwaukee and St. Paul, and of the
Butte, Anaconda and Pacific show, 1 kilowatt hour is equal in
propulsive power to 6 or 7 pounds of coal, the fact that the
one can be furnished at a cent in large blocks, while the latter
will cost now at least 3 cents, is too outstanding to be neg-
lected long.
A Publicly-Owned Monopoly
The recent deal whereby the Mackenzie electrical interests
at Niagara Falls, the transmission line to Toronto, and plant
and radials in and around Toronto, is acquired by the Hydro-
Radial Commission and Toronto is a sign of the rapid develop-
ment of our power projects. When the Chippawa canal de-
velopment is complete the hydro-electric system will distribute
not far from a million horse-power. It will be by far the
greatest electrical distributing system in the world. Ontario
will surpass any other' part of the world as an electrical cen-
tre. Some idea of the savings that may be effected is sho\'rn
by the fact that the hydro-electric will be able to give power
to the Toronto street railway at $18 a horse-power, while the
railway company now pays another Mackenzie company $25.
Eventually Ontario is likely to have a vast public-owned and
operated monopoly of power development and traction service.
Use in Iron Smelting
In northern Ontario, where water-powers are ample, but
users scarce, development depends on the establishing of sin-
gle industries. But if the Dominion government were to bonus
the iron ore industry at a rate of $1 a ton the vast ranga of
ore from Sudbury through to the Minnesota border could be
utilized. The average of this is from 30 to 50 per cent., almost
as high as the Minnesota ore, and the "beneficiation," alongside
wonderful water-powers, would naturally lead to the establish-
ment of electrical furnaces. There are technical difficulties in
the way of making original pig iron in electrical furnaces, but
when the two main elements are found side by side the smelt-
ing business is sure to find some way of establishing itself
there. In the next twenty-five years the water-powerj of
Canada will probably become the basis of new industries with
a production of billions, for the iron ore of the Minnesota
range is being fast exhausted, the anthracite coal fields of
Pennsylvania are being exhausted, the timber and pulpwood
resei'ves of the United States are being fast exhausted, and
we shall have all these or else satisfactory substitutes ''oi
them. Nature intended Canada to be the great electricil
workshop of the world.
January 7, 1921 THE MONETARY TIM,ES
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132
THE MONETARY TIMES
Volume 66
stocks Active with Wide Price Variations
Most Stocks Listed on Montreal and Toronto Exchanges Declined During
Year — Pulp and Paper Group Showed Strength — Atlantic Sugar's Decline Was
Sensation of the Year — Bank and Loan Company Stocks Also Lost Ground
^ Cl(
MOST groups of stocks listed on the Montreal and Toronto
Stock Exchanges sold on a lower price basis during the
closing weeks of tlie year 1920 than at the close of 1919. There
were exceptions to this rule, notably the pulp and paper
group, wliich in most cases advanced to new high levels and
re closing the present year on a materially higher plane
an they were a year ago. Price recessions include not only
industrials but banks and loan companies. The bond market
did not resist the downward tendency.
A survey of the list of stocks shows that tlie bulk of
shares are even below the low levels of December, 1919. In
the utilities, for instance, Bell Telephone has been selling
lately at around par, as against a low of 115 a year ago; Bra-
zilian at 35, against 50; Consumers' Gas at 134, against 144;
Detroit United at 103, against 112; Duluth-Superior at ISVa,
against 28; Mackay at 69V2, against 13^:>; Quebec Rails at 22,
against 26; Toronto Rails at 45, against 42; Twin City at 47,
against 33 ; Winnipeg Electric at 33, against 35.
The same general characteristic prevails in relation to in-
dustrials. British Columbia Fishing has been selling at 40,
against 62; F. N. Burt at 94%, against 105; Bread at 19%,
against 28; Steamships at 49, against 70; Canadian General
Electric at 93, against 103; City Diary at 50, against 56; Do-
minion Canners at 29, against 56; Monarch Knitting at 60,
against 46; Pacific Burt at 30, against 33; Penmans at 110,
against 105; Wm. Rogers at 53, against 66; Russell Motor at
70, against 95; Shredded Wheat at 132, against 145; Tucketts
at 45 as against 51.
The equipments show a similar tendency. Locomotive has
been selling at 85, against 95; National Steel Car at 4, against
4; Car and Foundry at 34, against 30.
Among the milling issues considerably lower prices pre-
vail. Lake of the Woods has been selling at 135, against 169;
Maple Leaf at 134, against 196; Ogilvie at 200, against 293;
Western Canada at 115, against 130.
Of the big mine-industrial issues, Smelters is selling lower
at 20, against 28; Crow's Nest Pass Coal at 48, against 60;
Nipissing at 9.75, against 13;25.
Earnings Have Been Good
The general run of companies represented in the stock
market had done well during recent years and only in the
cases of a few companies did the earnings show serious impair-
ment in 1920. Numerous stocks, however, were overbought
and the market became top-heavy, with the result that when
several strong bearish conditions developed the market gave
way rather severely.
The pulp and paper shares and some specialties such as
Atlantic Sugar occupied the limelight during most of the year.
The steels, textiles, equipments and utilities did not enjoy
nearly so much activity on the buying side. The result was
that when trouble developed the papers and some specialties
suifered severely, while the last-named groups held fairly
steady under general pressure. Victory bonds have declined,
but the recessions have been moderate as compared with the
war issues of other countries.
Commodity and Money Markets
Up until late summer every condition favored the buying
side of the stock market. The money market had been com-
paratively easy. Trade in the genei-al commodity market was
brisk. The incomes of workers were at the peak. Investors
were getting liberal returns on their securities.
Then the feeling spread gradually that a change was com-
ing. This was inspired by the fact that the banks unani-
mously tightened up on their loans. Instructions to the
effect that credits should be -withdrawn rather than extended
were sent out. The banks had good reasons for their action.
The leading bankers of the country had made a careful sur-
vey of conditions. Credits had been carried far enough and
price inflation had gone too far. Furthermore, huge sums
of money were needed for the movement of the crops.
Soon after prices of a few important commodities were
reduced materially and then followed an almost general down-
ward revision. Nervousness spread to the stock market.
Speculation was checked by sharp advances in call money. A
period of suspense ensued which preceded an inevitable slump.
Pulp and Paper Issues Gain
In the last Annual Review the Monetary Times forecasted
that the pulp and paper group would occupy a prominent
place in the market and gave as reasons the secure market
for pulp and paper, the immense i-esources of this country,
the shortage in other countries, especially in the United
States, and the strong business and financial position of most
of the Canadian companies represented on the stock market.
These conditions hold good to-day and are likely to hold for
many years to come. The pulp and paper issues offered spec-
ulative opportunities at the close of last year, but they ai'e
fundanventally investment securities. The growtli in the ex-
port business of our pulp companies in recent years has been
spectacular and 1920 is outstripping former years. Exports
for the first seven months of the current fiscal year aggre-
gated nearly $104,000,000, an increase over the corresponding
period a year ago (which was the then high recoi-d) of about
100 per cent. While the prices of some of the higher classes of
paper have declined slightly this year end, sharp advances
in newsprint are predicted for 1921. The prices prevailing
in the various issues near the close of 1920 are compared
herewith with the high prices of 1919: —
— 1919 — Price
High, 1920 High Low Nov. 23, 1920
Brompton 85 .87 55 63
Howard Smith __ 115 151 65 115
Laurentide 125 245 192 93
Price Bros. 385 260 150 300
Prov. Paper 117 85 51 106
Riordon 226 191 117 162%
Spanish River __ 125% 90% 17 84
Wayagamack 150M 90 45 103%
Sugar's Meteoric Career
Atlantic Sugar was the individual stock that provided the
big sensation of the year's activities. The company's last an-
nual statement revealed large earnings from a substantial
volume of business. The shares were placed on a dividend
basis and prospects were rosy until somebody made a serious
miscalculation. Large volumes of raw sugar were contracted
for at top prices, just before the bottom fell out of the sugar
market. The shares, which had risen to 168, slumped heavily
under the weight of selling to 19. Only at that price was
confidence in the stock renewed and a moderate recovery fol-
lowed.
Steels on Lower Basis
The steel issues are selling on a much lower price basis
than they were at the crest of the 1919 movement and in most
cases are somewhat lower than the low of last year. At
present levels they look like a reasonably safe purchase.
A feature of the year's developments has been the long-
talked-of merger between the Dominion Steel Corporation and
the Nova Scotia Steel and Coal Company. While the public
have not been especially attracted by the steel group this
year the merger is undoubtedly a natural, even inevitable, de-
January T, 1921
THE :\IONETARY TIMES
133
H. M. E. Evans & Company
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Valuations Farm Lands
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134
THE MONETARY TIME. S
Volume 66
velopment. The chief steel business of the world is being
carried on by colossal corporations. The big Canadian com-
panies have immense resources of iron and coal, but to com-
pete successfully in the world's markets the industry must be
operated on a commensurate scale. Whether the merging of
big intei-ests in Canada is desirable or not, it is expedient in
the present era.
The steel companies suffered from a slackening of new
orders and plants have not been running anything like full
time. The decline in basic prices had a temporary effect on
the steel market, and this, added to coal shortage, made the
immediate outlook somewhat certain.
Technical Strength of Victories
From a market standpoint the year in the market for
Victory bonds has been less favorable than hitherto, but the
decline has been moderate as compared with the war bonds
of other belligerent countries. United States Liberties have
been selling as low as 88 to 96 on the open market, whereas
Canada's war loans have been ranging between 90 and 94 Va,
while the Victory loan committee, which up to the end of
November controlled the market for the three Victory loans,
has been able to maintain the price at 96 to 102, and find
buyers. The course of the market for Canada's domestic
government bonds may be shown by a comparative table: —
Issue Price
Rate price Close, 1919 Nov. 29
1925 War Loan 5 97.5 96 — 96^i 91%
1931 War Loan 5 97.5 96%— 96% 90
1937 War Loan 5 96 99%— 99% 94%
1922 Victory Loan 51/2 100 100%— 981/2 96
1923 Victory Loan 5 ¥2 100 100 94
1927 Victory Loan 5y2 100 10214—100% 941/2
1933 Victory Loan 5% 100 100 94
1937 Victory Loan 5y2 100 104%— 103 94y2
1924 Victory Loan 5y2 100 100 92
1934 Victory Loan 5y2 100 100 8978
The finance minister announced on November 29 that all
Victory bonds would be aemoved from the control of the Vic-
tory loan committee. On that day trading was heavy on the
selling side and recessions of from fractions to several points
were registered. The bonds were taken up in large blocks,
however, at the easier prices, and in view of the fact that no
less than $270,000,000 of bonds have been absorbed by perma-
nent investors through the medium of the Victory loan com-
mittee the trend of prices should be upward, at least as soon
as the immediate pressure by needy sellers is removed from
the market.
The wisdom of the financial authorities in Canada in al-
lowing a rate of interest on the war issues commensurate
with current money-market conditions is being confirmed.
The private investors of this country have been more inclined
to hold the bonds they bought as a permanent investment
than the people in the United States. The authorities in the
United States made a serious mistake in allowing only 3y2
per cent, interest, because at that return the people would not
keep their holdings, and huge volumes of the Liberties are
still unabsorbed.
It is noteworthy that during the year 1920 the Dominion
has redeemed a large volume of the war issues. While com-
plete official figures are not available, the amount redeemed is
approximately a hundred million dollars.
As an investment the Victories are a much better buy at
the moment than ever before. The yield is higher and the
floating supply of bonds has been materially reduced.
The slump in the stock market towards the close of the
year has had a healthy effect on the technical condition of the
shares. The actual financial and business condition of most
of the companies represented is secure. Annual reports of
companies recently published have been gratifying. A close
study of representative listed stocks on Canadian exchanges at
the year's closing prices might be worth while.
As an indication that the lower price movement in the
share market is due chiefly to market operations and not pri-
marily to intrinsic conditions, the bank stocks have been sell-
ing at a much lower rate than they were a year ago. Com-
merce has been quoted at 185, against 195; Dominion at 193,
against 201; Hamilton at 172, against 188; Imperial at 185,
against 196; Merchants at 169, against 188; Montreal at 190,
against 209; Nova Scotia at 254, against 273; Royal at 191,
against 214; Standard at 210, against 209; Toronto at 179,
against 194; Union at 140, against 158. The declines were
made in the face of an increase in financial strength among
the banks.
The loan and land companies' shares, as this year closes,
show declines all through the list of several points as com-
pared with the close of 1919, while the unlisted stocks, more
actively dealt in here, are selling for the most part on a lower
basis.
ALBERTA COAL PRODUCTION HIGHER
Alberta's coal production for 1920 will be 30 per cent, in
excess of last year's, it is estimated by the government mines
branch. A total output of well over 6,500,000 tons is expected
by the end of the year, as compared with 5,022,412 tons in
1919. There had already been mined for the first nine months
of the year, to the end of September, a total of 4,750,964 tons,
the output for September alone being 618,093 tons.
The mines are now reported as running satisfactorily in
all fields, and the good lead over last year was experienced
throughout November and December. Some difficulty has
been encountered from the shortage of cars, pai'ticularly at
Drumheller, but reports to the government offices indicate that
shipments are going' steadily forward to the local and prairie
markets as fast as cars can be secured.
ACTIVE YEAR FOR LAKE STEAMSHIPS
Freight traffic on the great lakes and on the eastern and
Pacific coasts during the past year was well above the volume
of 1919, and passenger traffic on most lines exceeded all pre-
vious records. Speaking for the Canada Steamship Lines,
Ltd., which is the largest company operating a service of this
kind, J. W. Norcross, president and managing director, said in
an interview recently: —
"So far as passenger traffic is concerned our receipts are
almost $1,000,000 in excess of those reported up to this time
last year. The steamers operating on all divisions of the sys-
tem have been patronized to an extent which surpasses all
former records, with inquiries as to accommodations for next
year of a nature as to indicate that business in 1921 will be
well up to this year's record-breaking standards. Our hotels
are booked almost to capacity for next year after an excellent
season so far in 1920, and altogether the outlook for the tour-
ist business is excellent.
"Freight business on the great lakes has also shown ma-
terial gro\vth and, with the western crop movement inaugu-
rated in the course of the next ten days or two weeks, our
earnings in this department will be well in excess of those of
last year. It should be borne in mind, however, that operat-
ing expenses of water carriers, like those of the railway sys-
tems, have been subjected to substantial increases. Labor is
high, vrith other materials, notably coal, much over the levels
of last year, but in the ultimate analysis of the results of 1920
operations I am convinced we shall find that our net earnings
will compare very favorably with those of 1919, which were,
it must be remembered, the best in the history of the Canada
Steamship Lines."
Mr. Norcross stated that ocean-borne traffic had not been
up to the 1919 level, but the increases in inland passenger
and freight business would more than make up for the deficit
in this respect. The current year's receipts from inland traf-
fic would, in all likelihood, be maintained next year, while
ocean freights might undergo improvement. "The underlying
strength of an organization like Canada Steamship Lines," he
stated, "lies in the fact that the company operates both ocean
and inland lines. When business is poor in one direction it
usually happens that it is profitable in the other. This has
been our experience in the past and will likely prove so in the "
future."
January 7, 1921 THE MONETARY TIMES
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THE MONETARY TIMES
Shipping and Shipbuilding in 1920
Fall in Rates Makes New Construction Unprofitable at Present Enhanced
Cost — Government Merchant Marine Will Probably be Burden to
Country — Operation Will Assist Foreign Trade at Expense of Taxpayers
SPEAKING at the launching of the "Canadian Leader" late
in November, the managing director of the Vickers Com-
pany, of Montreal, said that 40 per cent, of Canadian ship-
yards had "sung their swan song." Unless conditions changed
he expected a much larger mortality. The Vickers Company
had business to last them until April, and nothing in sight
after that.
This condition was typical in most Canadian shipyards in
the latter part of the year. It was prophesied in midsummer
in an article in The Monchvy 'fiiihs. Unless there is new
business coming out of an apparently barren atmosphere 1921
wjll see the reduction of Canadian shipbuilding to at least one-
half of its war vigor. The immense impetus given to it by
war orders and by the Dominion government's immense
shipbuilding programme — a consequence of the war — has
ceased, and peace business is being sharply competed for, with
contracts scarce. Already first-class tonnage is selling in the
British market for about $100 a ton, and allowing for ex-
change these ships could be bought for $75 a ton Canadian
money. The lowest contract of the government list is for
$167.50 a ton, and Canadian shipbuilders, like British builders,
cannot build at under $150 a ton. New orders, therefore, are
mostly for ships of a type or class not purchaseable in the
open market.
World's Tonnage is Increased
The world now has a tonnage larger than in pre-war times
and apparently quite adequate for the reduced international
business caused by exchange handicaps. After the great
war spending orgy the nations are turning to economy and
shipping rates have fallen to one-third what they were —
not passenger rates — with cargoes in most lines none too
plentiful. All this has a reaction on Canada and Canadian
shipbuilding, and it is now not improbable that Canada will
have to stand a considerable loss on the government merchant
marine, not only as regards capital, but in operating. The
first annual report, up to December 31, 1919, showed a profit
of $1,406,000 on 28 completed voyages, but since then cargoes
have been slimmer and i-ates much lower. By the time the
two dozen freighters now being completed are put into com-
mission the government marine management may have more
tonnage on hand than it can profitably employ.
Large Contracts Placed Here
The minister of marine announced early in the year that
the National Shipbuilding Company, of Three Rivers, had ob-
tained contract for six ships of 5,000 tons d.w., three of 3,200
tons, and two of 6,500 tons, from French sources. The Vick-
ers Company of Montreal had contracts for two vessels for
Norwegian interests, the Coughlan yards in Vancouver built
steel vessels for foreign use, and other Canadian yards had
individual foreign contracts. The Prince Rupert Dry Dock
and Engineering Company was in line for a large order from
Mexico for cargo. ships and tankers, and the Erb interests of
New York were said to be ready to give contracts to this
company, but some hitch in financing appai'ently arose. The
C. P. R. placed a contract with a Vancouver yard for a steam-
ship for the British Columbia coastal service, and a lake yard
did some business altering a lake steamer for ocean service.
The bulk of the shipbuilding was, however, for government
account.
Ship Still to Be Delivered
On the 1st of December the following ships had yet to be
delivered to the Government Marine. As will be noticed,
they are mostly large ships. Indeed, the tonnage of the 25
vessels is not far under 200,000 tons. The total tonnage con-
tracted for was 380,000 tons:—
Price
Ship. Tons Yard per ton
Can. Fisher 5,100 Tidewater Co $200.00
Can. Forester 5,100 Tidewater Co 200.00
Can. Mariner 8,390 Halifax Shipyards 195.00
Can. Explorer 8,390 Halifax Shipyards 195.00
Can. Winner 8,390 Harbor Marine Co. 198.00
Can. Traveler 8,390 Harbor Marine Co. 198.00
Can. Cruiser 10,500 Halifax Shipyards 180.00
Can. Constructor _.10,500 Halifax Shipyards 180.00
Can. Reaper 8,390 Prince Rupert D. D. Co 190.00
Can. Thresher 8,390 Prince Rupert D. D. Co 190.00
Can. Squatter 4,575 British-American Co. 215.00
Can. Pathfinder ___ 3,500 Dominion Shipbuilding ___ 180.00
Can. Engineer 3,500 Dominion Shipbuilding ^_- 180.00
Can. Commander __ 8,390 Canadian Vickers Co. 170.00
Can. Leader 8,390 Canadian Vickers Co. 170.00
Can. Highlander __ 8,390 Wallace Shipyards 167.50
Can. Skirmisher __ 8,390 Wallace Shipyards 167.50
Can. Rover 3,890 Collingwood Ship Co. 182.50
Can. Coaster 3,890 Collingwood Ship Co. 182.50
Can. Sapper 2,800 Nova Scotia Steel 190.00
Can. Challenger 8,390 Davie Shipyards 167.50
Can. Harvester 3,890 Port Arthur Ship Co 182.50
Can. Transporter _- 8,390 Coughlan & Sons 167.50
Can. Freighter 8,390 Coughlan & Sons 167.50
Nearly all the freighters of the eight to ten-thousand
class have yet to go into commission. By the first of the
year six or seven of the above-mentioned vessels were prac-
tically ready for service, and all but four or five of the
twenty-five were on the stocks or in the water. These con-
tracts are the basis of Canada's shipbuilding activity. What,
then, will happen when they are complete? The government
cannot give more, for the sake of giving, not even to provide
employment for the large number of workmen or allow re-
turns on the $100,000,000 of capital. The prices now are too
high and unless labor costs are lowered the plants may, with
half a dozen exceptions, close dov\Ti permanently. As an in-
ternational shipbuilding country we have to compete with the
United States and Britain, and the task is not a light one.
How Costs Have Risen
An insight into what has happened in Canadian shipbuild-
ing costs was provided by the liquidator of the Dominion
Shipbuilding Company of Toronto. He furnished a state-
ment showing the increase in labor and material costs: —
Labor per ton Material per ton
1918 $40.00 $76.00
1919 49.00 116.00
1920 61.00 95.00
The Dominion Shipbuilding Company entered into a con-
tract to build ships at $180 a ton, and the labor and material
alone in 1920 mounted to $156 a ton, and penalties of $70,000
acci'ued through delay, involving an actual loss in construc-
tion. It is not surprising that the company went into liqui-
dation. The two freighters unfinished at the yards, the Path-
finder and Engineer, will be finished by the Dominion govern-
ment as a concession to unemployment in Toronto, yet it was
mainly the insensate demands of shipyard workers for more
and more wages which produced the result. This has oc-
curred in nearly all Canadian plants at one time and another,
and has handicapped the placing of shipbuilding on a safe*
and sound basis.
January 7, 1921 THE MONETARY TIMES
MOOSE JAW
SASKATCHEWAN
THE CENTRE OF THE GREAT WHEAT COUNTRY
We invite enquiries regarding
Our L^knd, Our Telephone and Municipal Debentures,
Mortgages and other Securities
KERN AGENCIES
(Correspondents :
LO(iAN A: BRYAN,
New York
LIMITED
INSURANCE Private Leased Wire
STOCK, BOND AND GRAIN BROKERS Coast to Coast
MEMBERS WINNIPEG GRAIN EXCHANGE
MOOSE JAW
THE EMPIRE LOAN COMPANY
Authorized Capital $5,000,000.00
Subscribed Capital 671,100.00
Paid Up Capital and Surplus - - - 715,000.00
Assets (approximately) 900,000.00
President, CHAS. M. SIMPSON Vice-Preiident. WM. BRYDON Secretary-Treasurer. S. T. JONES
DIRECTORS:
CHAS. M. SIMPSON, H. H. BKCK. W ^[. BRYDON. A. B. STOVKI,,
President. Fidelity Trust Company Director Union Tru.st Company Contractor Stovel Company
JOHNSTON DOUGLASS, RICHARD McKKNZIK, A. N. McPHERSON,
Oirector. Kiiuitable Trust Company Western .Manager. McLaughlin Motor Car Company .McPherson & Brown
The Empire Loan Company issues Debentures iu sums of $100 and upwards for terms of from one
to five years, bearing interest at current rates. Sterling Debentures for .£^25, and upwards, with interest
coupons payable in London, Kngland, are also issued. These Debentures are a charge on the Company's
Assets, and the Debenture holders are further secured by the deposit of mortgages with a trustee to the
amount of one and one half times the total amount outstanding debenture debt.
Debenture Prospectus may be had on Application.
HEAD OFFICE:
UNION TRUST BUILDING, - WINNIPEG
THE MONETARY TIMES
Volume 66
It is no excuse to say that the United States has been
equally guilty. Our government ships were built at an aver-
age cost of $190. The cost of the United States Shipping
Board vessels was near $220. British authorities ordered
many ships in the war crisis, in the United States, in Canada,
in Japan, at prices ranging from $200 up to about $215. But
that was a war crisis, when the submarine made tonnage val-
uable at any price. Our government ships now have a capi-
tal co.st much higher than the market price of British ships.
The efforts of the United States Shipping Board to sell some
of its thousand or so steel freighters have shown that private
purchasers now are unwilling to pay more than about one-
half of the cost of building. Unless large profits are earned
in the next few years, to bring down the capital cost, the loss
will probably have to be written off in order that rates may
be based on current market values. The cost of the Canadian
government fleet is about $70,000,000, and by the end of 1921
intrinsic value may not be more than $40,000,000.
No Demand for New Ships
There are no recent figures available to show the com-
pai-ative cost of operating freighters and the returns from
new freight rates. But an official of the Fairchild firm re-
cently showed that passenger ship operation had increased in
cost by about 380 per cent, during the war, and rates have
increased approximately 180 per cent. On a liner the size
of the steamer Calgarian, which is well-known to Canadians,
coal which used to cost $22,500 per trip now costs $120,000;
repairs for the round voyage $37,500, instead of $8,500; pro-
visions $40,000, instead of $15,000; wages $45,000, instead of
$12,500. The capital cost would be $8,500,000 instead of $2,-
750,000. There was a cost of $300,000 per round trip, includ-
ing interest, depreciation and insurance.
It is no wonder that the Canadian Pacific Company, which
has two passenger vessels being completed in the motherland
now, has decided that capital costs are too great for any fur-
ther ordering. Nearly every other ship-operating company
has come to the same conclusion.
Comparative Costs
The result of the surplus of ships in the world, and of
extraordinary high costs of new^ construction, has been felt in
the United States and Britain almost as severely as in Canada.
Most of the 140 steel shipyards of the United States have been
closed and British orders have been heavily cancelled. On
June 1 last United States yards had under construction for
private persons 345 steel ships of 1,063,000 tons. About that
time British yards regained their supremacy in tonnage in
hand. But business for 1921 is poor indeed, for in the mat-
ter of steel alone the United States and Canada can now out-
bid Britain. British steel costs more to make than American
or Canadian steel can be laid dowTi in Britain at. Canadian
ship plates have been exported to South Africa, Australia and
other countries that used to get British plates only. In Brit-
ain more than 700 ships are now laid up for lack of sufficient
cargoes at rates that will meet the cost of operation. The
United States Shipping Board has laid up about 200 vessels
and is weekly laying up more. It controls nearly 10,000,000
tons, and in spite of all that it has tried to do, foreign ship-
ping is again carrying the bulk of American exports and im-
ports.
Jones Act Started Something
One of the great shipping events of the year was the pas-
sage of the Jones act by the United States congress. This
would have directly affected Canada if it had been put fully
into eff^ect, but President Wilson has declined to obey the most
important provisions of the act, and thus the situation stands
in abeyance. The act directed the President to abrogate all
commercial treaties which required the United States to treat
shipping of foreign nations without discrimination respecting
port dues, rate privileges, etc. This could not be done with-
out repudiation of signed agi'eements, but if it had been done
the liveliest shipping war ever seen would have been started.
Canadian ports would have benefited greatly, because this
country would have been used as the entrepot for foreign
goods destined for the United States, and United States goods
would have been shipping out via Canada. The great diversion
of traffic to Canadian channels would have overcome the
threatened discrimination and put our Canadian fleet in an
exceptionally advantageous position. Indeed, the Holt line
has contemplated moving its head offices from New York to
Montreal, and on the Pacific Coast some American shipping
concerns also figured on moving to Vancouver to escape the
vexatious new restrictions.
New Routes Opened Up
During the year steamship services to and from Canada
have been much augmented. Private lines as well as the
government marine have put on new steamers and opened up
new routes. Canada is commercially a much more important
liart of the world than before the war. Then our foreign
trade hardly amounted to a billion dollars a year; now it is
more than two and a half billions. The government marine
has done much to promote our overseas connections. It is
operating nov*' about 40 ships out of the total of 63, and Brit-
ish, West Indian, South American, Australian and New Zea-
land, Indian, and Chinese and Japanese ports are being regu-
larly traded with. The government marine concluded arrange-
ments with the Holt Line and the British India Steamships to
operate alternate steamers from Atlantic ports to British In-
dia and to Hong Kong. The Elder-Dempster Line is operat-
ing a new service to the West Coast of Africa. The Euro-
pean service is much enlarged.
The conclusion of the West Indies trade agreement,
whereby the British colonies of the West Indies, British Hon-
duras and British Guiana give a 50 per cent, preference, in
return for the same, has greatly encouraged our southern
trade. Canadian cement, pulp and paper products, steel, and
other manufactures are being shipped extensively to these
southern points. Indeed, our exports of manufactures show
signs of outstripping our agricultural exports. Before the
war they were only $43,000,000, now they are $500,000,000.
The growth of Canadian shipping has been of inestimable
value in promoting this trade. In 1895 we had 669,000 tons
on registry, in 1919 we had 1,091,000 tons, and had become
the fifth maritime country of the world.
Progress as Maritime Nation
Even if our shipbuilding is reduced, as it cannot avoid
being, it will be far larger than before the war, and our net
gain as a maritime nation is bound to be large and permanent.
Not much advantage has yet been taken of the Dominion gov-
ernment oifer of credit assistance to foreign purchasers of
Canadian ships to be built. The government got authority to
advance 50 per cent, of the cost of any steel ship of more than
3,000 tons, providing that 25 per cent, were put up by the
placer of the order, up to a total of $20,000,000. The loan was
to be for five years. Some large orders seemed in prospect
through this assistance, but the United States Shipping Board
offered more generous assistance, and apparently no advan-
tage of it has been taken. The government is being asked
for a direct subsidy on tonnage, but when costs of construc-
tion are obviously too high this could not be of more than
temporary use. Shipbuilding is a business that cannot be
profitably carried on by special subsidy and the shipbuilding
companies must make their labor and material costs conform
to the new requirements.
The value of British Columbia salmon pack in 1920 was
$13,307,000, according to official figures of the British Colum-
bia Canners Association. The total number of cases amounts
to 1,177,047, against 1,399,156 last year, and 1,616,157 in
1916.
The coal mines of Alberta produced in 1920 approxi-
mately six and three-quarter million tons of domestic,
bituminous and anthracite coal, a volume greater by half a
million tons than the output of 1918, which had previously
held the record for the Alberta fields.
Januan' 7, 1921
THE :monetary times
lllllllllllllillllllllllllllllllllllillllllll
139
I MOOSE JAW I
1 Saskatchewan's Railway and Industrial Centre g
Gross Debenture Debt
(31st Oct., 1920) -
Sinking Fund $930,406.91
High School 142,102.86
Local Impvts.
(owners' Sh're) 779.883.37
Net Debt -
Surplus in Sinking Fund above legal require-
ments, $68,042.96
POPULATION, 1916 census
Bank Clearings
1919
1920(11 mos.)
$ 5.997,325.84
-1.852.393.14
$4,144,932.70
Sinking Fund Investments :
First Mortgages
Rural Telephone Debent.
Dominion of Canada War Loan
City of Moose Jaw Debent.
Province of Saskatchewan
Cash in Bank - - - -
Accrued Interest
$ 85,556.85 m
418,044.10 m
310,000.00 =
67,689.08 m
8.000.00 =
3.568.67 m
37,548.21 ^
$930,406.91 =
Total Tax Levy
Les
$86,447,626
84,910,768
$1,041,985.99
Assessment, 1920
Exemptions
Net Taxable Assessment
,934; 1920 census 23, ISO
Customs Receipts BIdg. Permits.
$584,064 $ 590,895
459,621 1,527,200
Tax Rate - 41.60 mills
$27,802,825
4,826,615
$22,976,210
Land i, assessed at lOO^c ; .mprovemenls at 45 -c of their value. Surplus of Assets over Liabilities. $2 ,414 .5 75 ^
The City owns its own light and power plant which has a capacity of 6.000 K.W., and power J
is sold to manufacturers at from 1.2 cents per K.W. hour up. ^
Moose Jaw is just completing its new water works which will furnish abundant water for ^
manufacturing and domestic purposes. i i u =
Five new industries have been put in operation in the City this year. Moose Jaw is the home =
of the packing industry of Saskatchewan. The Robin Hood Mi s operate m the cty 8 d.stmct ^
factories for the manufacture of food and stock products. Their flour mill has a capacity of 5,UUU ^
barrels per day and their roiled oats plant 2,000 cases per day. ^
The Government Terminal Elevators, situated in the City, have a capacity of 3,50U.UUU ^
bushels. The South Saskatchewan Co-operative Stock Yards, located '" t^^^. C>ty- '^o;"^^""'^ M
operations in 1919 and now hold third place in the Dominion for volume of traffic handled. the ^
capacity of the Yards exceeds 5,000 heads and its area is approximately 80 acres. . ^
S. A. HAMILTON, Mayor GEO. D. MACKIE, City Commissioner g
iilli
THE MONETARY TIMES
Volume 66
Legal Decisions on Provincial and Local Finance
Capital Expenditure of Oil Company Held Assessable for Income in Ontario,
and Operations of a Company Are to be Considered Separately— Domicile of
Deceased Determines Succession Duty— Powers of Medicine Hat Charter Interpreted
ASSESSMENT and taxation are fruitful sources of litiga-
tion, and the past year has produced several cases on
these and other points in public finance which have reached
the higher courts in this country.
Union Natural Gas Co. vs. Dover Township
Of the cases before the Canadian courts during the past
year dealing vi^ith questions of public finance, that of Union
Natural Gas Company vs. Township of Dover was the most
notable and important. The case arose over the assessment
of the income of the company under the Ontario Assessment
Act, and the Supreme Court of Canada, in affirming the deci-
sion of the Supreme Court of Ontario, held that e.xpenditure
on the sinking of new wells or the deepening of existing wells
by a company in search of oil and natural gas is expenditure
on capital account and is not deductible from earnings for the
purpose of arriving at the income of a mine or mineral woi'k
assessable under the Ontario Assessment Act.
In 1916 the Union Natural Gas Company leased land in
the township of Dover, county of Kent, and drilled wells in
search of oil and natural gas, but its efforts came to little un-
til 1917, in which year the value of oil and gas produced was
$11,041, and in 1918, when oil and gas to the value of $93,368
were produced. In its efforts to produce this the company
drilled in the township of Dover some twelve wells, of which
only two — designated well No. 1 and well No. 7 ■ — produced
oil and gas, and they produced practically all the oil and gas
secured by the company in this township. The two wells in
operation were assessed at $35,000 each, but on appeal to the
County Court this was reduced to $62,376, this amount being
arrived at by deducting ground rent and cost of operation
from gross income. The company claimed that it had suf-
fered a deficit, for its payments on all wells, whether produc-
tive or not, had amounted to $116,120, which, less the assessed
income of 1919, viz., $62,376, left a deficit of $53,743.
Separate Operations of One Company
Meredith, C.J. 0., stated that the question for decision
was as to the mode of assessing which should be adopted. The
Ontario Assessment Act, section 40. provides that the income
from a mine or mineral work shall be assessed by and the tax
leviable thereon shall be paid to the municipality in which
such mine or mineral work is situate, provided that the assess-
ment on income from each oil or gas well operated at any
time during the year shall be at least $20. Then comes sub-
section 6, which provides for the assessment of mines or min-
eral work that are being operated. In his Lordship's opinion
"each gas or oil well — being a mine or mineral work — is to
be treated as a separate entity and the income from it is to be
separately assessed." "The assessment in respect of a mine
or mineral work is a very difl'erent thing from the assessment
of a merchant, a manufacturer or mine operator in respect of
the business carried on by him. If, as counsel for the appel-
lant contended, the appellant was to be assessed in i-espect of
its business generally, language very different from that which
is used in subsection 6 would have been used. Wliat the legis-
lature was there dealing with was land, and it was providing
that in the case of a mine or mineral work the land should
not be assessed at its actual value or at less than the value of
other land in the neighborhood used exclusively for agricul-
tural purposes, but that its value for assessment purposes
was to be determined by and be the amount of the income de-
rived from it. It is to be noticed also that it is not the in-
come from the business carried on by the appellant but the
income from the mine or mineral work that is to be assessed."'
Another case dealing with matters of public finance was
that of Barthe vs. Alleyn-Sharples. in which the Supreme Court
of Canada held that the Quebec Succession Duty Act was ultra
vires the provincial legislature under section 92 (2) of the
B.N.A. Act.
The Hon. John Sharpies died domiciled in the province of
Quebec, and amongst other assets his estate comprised shares
in various foreign corporations, whose head offices were not
situated in Quebec. The aggregate value of these shares was
$213,039, and the defendant, Margaret Alleyn-Sharples, is the
universal legatee in ownership. Barthe as collector of provin-
cial revenue sued to recover succession duties in respect of this
property.
The article of the Quebec Succession Duty Act in question
reads: "All transmissions within the province owing to the
death of a person domiciled therein, of movable property lo-
cally situate outside the province at the time of such death,
shall be liable to the following taxes calculated upon the value
of the property so transmitted after deducting debts and
charges as hereinafter mentioned."
The Hon. Chief Justice Davies says in his judgment: "I
may say that owing to the grave and great importance of the
question, I have deemed it right in this appeal again to re-read
all these authorities, with the result that I am more firmly
convanced than ever that in construing the powers of 'direct
taxation' within the province granted to provincial legislatures
by our constitutional act, so far as the levying of succession
and legacy duties are concerned, the true rule is that which ex-
isted alike in Great Britain as in the province of Quebec at
the time such act was passed, namely, that the domicile of the
deceased owner of the property, and not its actual location at
his death, determined which province could impose succession
and legacy duties upon it. The whole question was thorough-
ly thrashed out and determined in the House of Lords in the
appeal case of Winans vs. Attorney General, where the rules
respecting succession and legacy duties and estate and probate
duties are clearly laid down and the reasons for the application
of the mobilia sequentur personam rule to the two classes of
duties, succession and legacy, are given. They (the noble
lords who decided that case) were unanimous in their reasons
for the judgment they delivered in determining that so far as
succession and legacy duties were concerned the domicile of
the deceased owner and not the local situation of the property
must be taken as the controlling factor."
City of Medicine Hat Case
In another case, which dealt with municipal taxation, the
city of Medicine Hat referred a stated case to the Supreme
Court as to whether it could recover taxes due the city by per-
sonal action. The provisions of the statute in question are
contairted in sections 6 and 7, title 32 of the city's charter,
which are: —
"6. The taxes due upon any land may be recovered from
any owner or tenant originally assessed therefor and from any
subsequent owner of the whole or any part thereof, sa\nng his
recourse against any other person, and such taxes shall be a
special lien upon the land and shall be collectible by action
or distraint in priority to every claim, privilege, lien or encum-
brance to every person except the King; and the lien in its
priority shall not be lost or impaired by any neglect, omission
or error of any officer of the city.
"7. The production of a copy of so much of the roll as
relates to the taxes payable by any person in the city certified
as a true copy by the secretary-treasurer, shall be conclusive
evidence of the debt."
The words of the Hon. Chief Justice Stuart in deciding the
case are : "It is apparently well-settled law that a tax is not a
debt unless expressly declared to be so by the statute imposing
January 7, 1921
THE MONETARY TIMES
The British Columbia Land
and Investment Agency
Limited
LONDON, England, and VICTORIA, B.C.
Jistablis/ied in British Columbia, 1S63
FINANCIAL. REAL ESTATE
AND INSURANCE AGENTS
EXECUTORS AND TRUSTEES
ESTATES MANAGED
MORTGAGE INVESTMENTS
RENT COLLECTIONS. ETC.
Head Office for Britith Columbia:
922 Government Street, Victoria, B.C.
Great Possibilities
A leading financial authority ex-
pressed the following opinion :
•* Wise investing in Public
Utility Securities offers
great possibilities."
Write for our booklet on the
Public Utility situation.
NESBITT, THOMSON
and Company, Limited
MONTREAL
TORONTO lAMILTON LONDON Ont
THE
BOND AND DEBENTURE
CORPORATION
OF CANADA, LIMITED
Dealers in
GOVERNMENT AND MUNICIPAL
BONDS
Correspondence invited
UNION TRUST BUILDING
WINNIPEG
SCRIP
STOCKS
BONDS
3* 217 EMPIRE BLOCK ^^,
EDMONTON
ALBERTA
Timber Lands
Coal Areas
Farms
ESTABLISHED 1908
THE MONETARY TIMES
Volume 66
it. The simple question is whether by the words used in the
above sections the court should hold that the statute has de-
clared the taxes to be a debt. The words are practically the
same as those of section 305 of the Town Act, and in the case
of Castor vs. Fenton, the Chief Justice held that under the
latter section taxes, could be recovered in a personal action
as a debt. I cannot but conclude that the real meaning and
effect of the statute is to make the taxes a debt, recoverable
by personal judgment."
DIVIDEND-PAYERS IN ALBERTA OIL FIELDS
The Old and the New Oil Boom — Record of the Southern
Alberta Oil Company
By Angus Lyell
A GOOD deal of interest is being taken at present in the pos-
sibility of oil being found in Alberta in commercial quan-
tities. Accurate data on what has been accomplished by con-
cerns operating in the province is, therefore, valuable. A few
of the companies promoted in the days of the 1914 boom are
still in existence, although, largely because of lack of adequate
capital, they have not accomplished much. The Imperial Oil
Company, Ltd., howevei-, has been prospecting in several dis-
tricts, and recent reports of what may be an important dis-
covery have created fresh interest in the possibility of valua-
ble oil fields in the province.
Until an official report is issued by the Imperial Oil Com-
pany, Ltd., statements regarding the strike at Fort Norman,
up north in the Arctic circle on the Mackenzie River, should
be materially discounted. The wild rumors of the last "boom"
are still fresh in the memory and outsiders should be warned
not to credit all stories now in circulation. In due course th -
Imperial Oil Company, Ltd., will undoubtedly issue an official
report.
New Field Is Far Away
Fort Norman is at the junction of the Mackenzie and
Great Bear rivers, some 1,400 miles north of Edmonton.
Ajfter leaving the railway at Lac la Biche and travelling somft
twenty miles to Fort McMurray there is a journey of over
one thousand miles by water, up the Chippewyan river as far
as Fitzgerald, where the navigation is impeded by ugly rapids,
and then through Athabasca lake, the Slave river. Great Slave
lake and the Mackenzie river. Even if a rich oil field exists
at Fort Norman it will be years before it can be developed
It will be necessary first to build a long stretch of railway so
as to provide adequate means of transportation
Wihile several hundreds of companies were incorporated
to prospect in the southern part of the province in the boor'
days of 1914, the real test of the oil resources of Alberta ha'-
yet to be made. Scientific and efficient prospecting can b;;
accomplished only if supported by adequate capital, under
competent control. This is what nearly all, if not all, the
local companies lacked. It is undei-stood that certain British
concerns will enter the field next year, and, if so, some real
results may be achieved. The Imperial Oil Company evi-
dently considers indications to be worth while.
One Good Dividend-Payer
In view of the developments which may take place it is
interesting to consider the operations of the Southern Alberta
Oil Company, Ltd., which for the past three years has paid
cash dividends. For the sixteen months ending. June 30th,
1918, it paid a dividend of 12 per cent. Since then it has paid
two annual dividends of 15 per cent. But yet the company
shows comparatively little progress.
For the sixteen months ending June 30th. 1918, its sales
of crude oil amounted to $76,730, the net profit being $60,188.
During the next twelve months there was an increased output,
the sales totalling $90,090, with a net profit of $72,635. For
the year ending June 30th last there was a decrease in produc-
tion, the sales being but $53,000. This is accounted for partly
by damage to the tubing in the producing well, which restnct-
ed the output for the greater part of three months. The net
profit for the year was only $31,228.
The company met with some measure of success in its
initia} effort. It is its first well which is producing the crude
oil. Two others have been commenced but not completed, and
the management appears to have decided to continue develop-
ment of the producing well rather than sink the available cap-
ital in further prospecting, which may be a wise policy. The
oil, however, has a strong odor which reduces its commercial
lvalue. All of the output is sold to a refining company — the
Southern Alberta Refineries, Ltd. — which is under the control
'A the same financial interests. The refining company has
been paying cash dividends of 10 per cent.
Southern Alberta's Balance Sheet
The outlay for development work and the financial stand-
ing of the Southern Alberta Oil Company, Ltd., may be readuy
seen from the following comparative balance sheet for the
past three years: —
ASSETS
As at As at As at
June 30,'18 June 30,'19 June 30,'20
Cash in hand and at bank __ $23,020 $25,883 $19,40S
Accounts receivable 75 49,123 72,473
Equipment, less depreciation 15,476 21,154 20,063
Development account —
Well No. 1— Cost, less de-
pletion reserve 42,565 33,424 27,724
Well No. 2— Cost 54,539 59,671 63,868
Well No. 3— Cost 2,688 2,688 2,688
Leases of natural gas and
petroleum rights 35,000 35.000 35,000
Real estate 8,437 21,273 21,273
$181,802
LIABILITIES
Accounts and wages payable $1,785
Real Estate — Unpaid
amounts Hot yet due
Capital — Issued and paid 103,203
Surplus 76,814
$248,218 $262,503
$1,614
6,336
103.203
137,065
$1,03?
5,443
103,203
152,81g
$181,802 $248,218 $262,501
Some Doubtful Assets
It will be observed that the oil rights and leases are val-
ued at $35,000, being about one-third of the issued capital.
This, however, is very modest compared with the value of
$659,130 which Calgary Petroleum Products, Ltd., places ou
its oil lands and leases, the issued capital of which company i&
$930,063. The surplus of $152,813 is at present largely t;
paper balance, offset by charges to development account ana
the value placed on the natural gas and petroleum rights; but
if the company is successful in its operations this item may
some day have a real value. The cost of well No. 1 is nov.
being charged annually to its earnings. In the year ending
June 30th, 1919, it was reduced by $24,307; in 1920, by $30 -
007. This is the proper practice. In a few years' time the
initial cost should be eliminated.
The dividend of 15 per cent, now^ being paid should not
be regarded wholly as a return on the capital investment.
The business of the company is highly speculative. Its well,
the worth of which has been more or less proven, is, as are
all oil wells, a wasting asset. Each dividend paid represents,
in the first place, a return of part of the capital employed
and, only in the second place, pajTuent for the use of that
capital. Perhaps none too conservative a basis might be to
treat 10 per cent, of the dividend as a return of capital and 5
per cent, of it as the earnings of capital.
But while one or two local concerns may achieve some
measure of success in prospecting for oil, the real develop-
ment will be accomplished by the big financial interests, if oil
of commercial quality and quantity does exist in the pro\'ince.
This because of the extent of the initial outlay and the neces-
sity of expert management at all stages of the work.
January 7, 1921
THE MONETARY TIMES
C. R. Clapp & Company
Government and Municipal
BONDS
53 Adelaide St. East, - Toronto
VICTORY
BONDS
Are now listed on the
STOCK EXCHANGE
We are in a position to exe-
cute your orders promptly
R. A. Daly & Co.
Mtmbtrs Toronto Stock F.xchanse
HANK OK TORONTO BUILDING
TORONTO
The Manitoba Farm Loans Association
OFFER THEIR SHORT TERM
FIRST MORTGAGE FARM LOANS BONDS
in denominations of $25.00 and upwards to investors interested
in a security of absolute safety and which can be easily
liquidated if required. These Bonds bear interest at 5^ and
are fully guaranteed, as to payment of Principal and Interest,
under Seal, by the province of Manitoba. They are held in
several provinces.
FOR FURTHER PARTICULARS WRITE FOR BOOKLET
The Manitoba Farm Loans Association
L. McNeill, Commissioner
WINNIPEG, MANITOBA
C. p. L. FOWLER, Secretary
THE MONETARY TIMES
Volume 66
JOINT DEVELOPMENT OF FARM AND CITY
Growth of Industrial Centres Raises Farm Values, Says Can-
adian Reconstriittion Association — Rural Depop-
ulation Has Other Causes
By Sir John Willison
President, Canadian Reconstruction Association
WITH a circulation of nearly 7,500,000 copies of pamphlets,
leaflets, and other written material, and the conduct of
special advertising, poster, and moving-picture campaigns since
its inception, the Canadian Reconstruction Association begins
another year with numerous special educational activities al-
ready in hand. It recently gave wide circulation to a new
pamphlet on Agriculture and Industry, dealing with rural de.
■yopulation, illustrating the general prosperity of agricultural
communities throughout the Dominion, and emphasizing the
national danger of free trade or of any radical revision of the
tariff downward.
It is a common practice of the Grain Growers to attribute
the decline in rural population in the Dominion to the tariff.
The facts are that the experience of free trade England has
not been different from that of protectionist America,
nor the history of New South Wales under low tariff different
from that of the protectionist states of Australia. The move-
ment of population from farming communities to cities and
towns is due to social and economic causes not connected di-
rectly or indirectly with fiscal policies, such as revolutionary
changes in rural conditions and the multiplication of farm
machinery which has displaced a great deal of the farm labor
which was necessary in more primitive conditions, rural free
mail deliveries, and mail orders systems, which have closed
village stores and forced merchants and business interests to
seek larger centres. The truth is that industrial development
encourages rather than discourages rural prosperity. The evi-
dence seems conclusive that "where industries flourish and
expand farm lands rise in value, and that in all those states
and provinces of North America in which manufacturing :a
general, active and prosperous, farmers too are most prosper-
ous and farms of greatest value.
Manufactures Absorbed Growth of Population
It is significant that in Quebec where manufacturing
steadily expands rural population is increasing. Five years
ago the total area of land under cultivation in the province
was 10,500,000 acres. This year 15,000,000 acres are under
cultivation. In a speech at Quebec a few months ago Sir
Lomer Gouin rejoiced that through industrial development the
movement of population out of the province had been substan-
tially overcome." So the history of the southern states shows
that there was no general recovery from the ruin of the civil
war "until cotton factories became common and the iron and
steel industry had its great development. It was found that
milk rose in value, that the market for dairy products in-
creased, that canning factories created a demand for products
previously ungrowTi or unsalable, and that millions of dollars
spent in the purchase and transportation of. imported food
preparations were transferred directly to the pockets of south-
em farmers. In a single year before the revival of agricul-
ture, Alabama imported canned goods and other food supplies
from California and elsewhere to the value of $110,000,000.
In less than a quarter of a century the total assessment of
North Carolina has increased from $1,000,000,000 to $4,000,-
000,000. In other states of the south there have been material
accretions of wealth and prosperity."
General Interest Comes First
Dealing with industry, the Reconstruction Association
contends that: "There are only two sureties of individual suc-
cess or collective prosperity. These are industry and effi-
ciency. . . . The man who creates a great industry, turns
raw material into finished products and employs labor at good
wages is a public benefactor even though he amasses wealth
in the process. In these days the labor leader who organizes
workmen to demand higher wages, but neglects to emphasize
the need of efficiency and greater production, puts a class in-
terest before the general interest. So does the farmer who
reduces production in order to increase prices, or the manufac-
turer who uses a tariff to secure an unreasonable margin of
profit. There is a statement by Mr. W. A. Appleton, secre-
tary of the English Federation of Trade Unions and President
of the International Federation of Trade Unions, which one
would like to have posted in every shop, factory and post office
in Canada; read from every pulpit, and printed on the first
page of every newspaper. 'Everything depends,' h^e says,
'upon production. Standards of living cannot be raised, nor
can existence be maintained unless mankind accepts this con-
tention. Eloquence, rhetoric or legislative action, whether
acting separately or collectively, cannot make the corn grow
or build houses, or feed children, or clothe humanity. Only
working and thinking can provide the things essential to life
and comfort.' "
North Dakota's Experience
The investigation department of the Reconstruction Asso-
ciation has recently made a field survey of the situation in
North Dakota with particular reference to the operations of
the Non-Partisan League. Its findings are to be published in
pamphlet form and will be given wide circulation. North Da.
kota presented a situation essentially similar to that in west-
em Canada. Like the prairie pro\'inces. North Dakota was
largely a one-crop territory, and the farmers there, like the
farmers of the Canadian west, were confronted with problems
and difficulties directly traceable to pioneer conditions and
lack of organization for marketing. Misunderstandings were
largely responsible for the agriculturists blaming these diffi-
culties upon the financial and commercial interests. The
North Dakota situation provided an opportunity for persons
with socialistic connections and ideas to exploit the growing
class-consciousness of the farmers and to gain the moral and
financial support of the agriculturists of the state for a social-
istic programme.
The farmers have derived no noticeable benefit from the
experiments ctf the Non-Partisan League, but the socialistic
legislation has not been without its effect. North Dakota has
not been able to sell any of its state bonds for the last four
years. The $2,000,000 of North Dakota bonds which consti-
tute the capital of the Bank of North Dakota have up to the
present proved unsalable. Many insurance companies and
loan and mortgage companies have refused to make new loans
in North Dakota, although increasing their investments "n
other states. It cannot be questioned that the withdrawal of
such companies as a soui-ce of capital for the farmers has re-
sulted in an increase in interest rates. The report analyzes
in particular the state banking experiment represented in the
Bank of North Dakota and shows the chaotic state into which
the Non-Partisan League policies have brought the govern-
ment and the banking and industrial schemes of the league.
Literature Distributed
The chief activities of the association this year have con-
sisted of the publication of its "Ten Commandments for Can-
adian Trade," urging public support of the home market.
These were given wide circulation, no less than 38,000 being
distributed throughout the country. As a further step in the con-
duct of its Made-in-Canada campaign, it issued a special pam-
phlet on "Ways to National Prosperity" last June. The national
situation was the subject of a special speech by the president
before the Canadian Club of Halifax, entitled "The Outlook for
Canada." This was sent to newspapers throughout the coun-
try, to members of Parliament, manufacturers, university pro-
fessors, school teachers, bank officials, clergymen, secretaries
of labor organizations, and municipal libraries. On July 1
the boot and shoe industry in Canada was the subject of a
special survey made by our investigation department and pre-
sented to the Boot and Shoe Manufactui'ers' Association of
Canada. "Western Factories and Lower Prices" was the sub-
ject of another particular leaflet giving extracts from a
speech delivered before the Progressive Club of Montreal by
Mr. W. D. Cowan, M. P. for Regina, printed by the association
and circulated in thousands in the west.
During the year the association has conducted its poster
advertising campaign urging home-market development and
support, and its industrial films dealing with the iron and
January 7, 1921
THE >IONETARY TIMES
145
Cable Address, "Nanton, Winnipeg"
OSLER, HAMMOND & NANTON
Investment Brokers, Financial
and General Insurance Agents
WINNIPEG, CANADA
Represent:
LOANING
Law. Union and Rock Insurance Co. (Investment
Dept.)
North of Scotland Canadian Mortgage Co.. 'Ltd.
Dominion of Canada Investment and Debenture
Co.. Ltd.
Osier & Nanton Trust Company
LANDS
Calgary & Edmonton Land Co.. Ltd.
Canada Saskatchewan Land Co.. Ltd.
Winnipeg Western Land Corporation. Ltd.
Represent:
INSURANCE
Law. Union and Rock Insurance Company
New York Underwriters Agency
Western Assurance Company
Queen Insurance Company
Northern Assurance Co.. Ltd.
Guarantee Company of North America
STOCKS AND BONDS
Stocks and Bonds bought and sold
on Toronto, Montreal. New York
and London (Eng.) Exchanges.
REAL ESTATE DEPARTMENT
Building Management. Rentals and City Real Estate
Cable Address, "Osier, Toronto"
OSLER & HAMMOND
Stock Brokers and Financial Agents
Members
Toronto Stock Exchange
Montreal Stock Exchange
21 JORDON STREET, TORONTO
STOCKS BOUGHT AND SOLD ON COMMISSION ON LONDON, ENG.
NEW YORK, MONTREAL AND TORONTO EXCHANGES
DEALERS IN DEBENTURES
SIR EDMUND B. OSLER F. G. OSLER G. T. CHISHOLM
H. F. MARRIOTT H. FRANKS
THE ]\I 0 N E T A R Y TIMES
Volume 66
steel, grain and milling, woollen, agricultuial implement, elec-
tric lamp, pulp and paper, sugar, and cocoa and chocolate in-
dustries, have been shown in 75 per cent, of the cities, towns
and villages throughout the Dominion having moving picture
theatres. Copies of these films have also been shown in Great
Britain and will form part of the illustrated industrial ma- .
terial which will be a feature of the Made-in-Canada train
which is to tour France.
Buying Movement Ended in Past Year
1920 Started With Activity, and Early Months Were Busy, But Trade
Soon Slackened— Business Depression Experienced By Wholesale and Jobbing
Houses— Close of Year Finds Numerous Failures and Much Unemployment
I'^HE year 1920 will be marked out in the annals of Cana-
dian trade as the one in which the price index number for
commodities attained the high-water mark of a generation
and then began an extended period of decline. The cycle of
advancing prices lasted about five years, beginning early in
1915, when Canadian industi-ies discovered that instead of col-
lapse due to the war they could make big profits from war
business and at the same time carry the entire country
through a period of prosperity.
Judge Gary, chairman of the board of directors of the
United States Steel Corporation, described the readjustment
of prices to low-er levels as "healthful." And that is a truth
that should be driven home at the present time. The indus-
tries and the wholesale, jobbing and retail trades had been
set a rapid pace by the public, both at home and abroad, who
were buying everything, no matter what the price, because
they had ready money. The majority of people are spend-
thrifts. Money easily made is easily spent, but this human
weakness has one good result in that it makes money circulate
rapidly through the channels of trade. Credit was easily ob-
tained. Manufacturers, wholesalers and retail merchants par-
ticipated in this. Business firms, \Some of them without much
behind them hy way of capital, were carried along on the tide.
Banks Call a Halt
Then an abrupt halt was called by the banks. Credits
were sharply curtailed and all departments of trade were in-
structed to get on a cash basis. The banks could have allowed
business to work out its own salvation, but it was judged bet-
ter to control the process of readjustment, tJiereby making
the change easier for all concerned. All would have suffered
by a severe slump in prices, whereas the trade can adapt it-
self without serious trouble to a decline that comes by slow
degrees.
Business firms which are soundly financed will not suffer
serious embarrassment. In most branches of trade buying
has been carried on cautiously for some months. The mills
will go slowly for a time, as retailers are refusing to buy until
their shelves are cleared. Sacrifice sales have been prevalent
all over the country.
Moderate recessions in the prices of commodities have
been widespread. Among the raw materials, grains, wool,
hides, cotton, wool and steel have been reduced in price, and
this movement has been followed by recessions in clothing,
motor cars, sugar, shoes, hardware, live stock, some drugs and
many other lines.
Production Slows Down
In the case of many of the commodities mentioned above
the output of factories has been curtailed. Some industries
have closed down, but , as yet the latter are not numerous.
Well-informed students of the markets agree that the partial
depression in business experienced at present is only tem-
porary. The hope entertained is that w-orkers will hereafter
atte»d more strictly to business; that when buying of raw-
materials is resumed by manufacturers it will be at prices suf-
ficiently reduced to permit the retail trade to buy commodities
cheaper.
The number of unemployed has increased in recent months
but this is largely due to the fact that workers have acquired
the habit of picking and choosing employment. The mines
and the lumber camps are calling for men and conditions will
force marly unemployed to leave the cities.
While it is not expected that the volume of business will
shrink to a point where genei'al distress will be felt, at least'
for a year, the scale of production and consumption will not
for many years be as large as it has been during the past three
years. It was inevitable that when Europe caught up in the
purchase of actual needs, following the devastation and depri-
vations of war, strict economy would ensue. Retrenchment in
buying has already set in. The Canadian government, which
had bought heavily in the domestic market, is purchasing much
less now.
Business Casualties on Increase
Business failures diminished in number steadily during the
closing years of the war and the ebb tide w-as reached in July,
1919. Since then the increase, while slow, has been fairly
steady. Weak members among all the trades are being elim-
inated. Houses that have given credit are strict. Little time
is given for debtors to pay up. During the nine months of
1919 ending September 30th failures in Canada were 608, as
against 433 during the corresponding period in 1919. The
assets of firms which assigned were less, being $723,000, as
against $2,622,000, whereas liabilities increased heavily from
$5,942,000 to $13,966,000. Conditions in the United States aie
about the same in proportion. Failures numbered 4,885, as
against 4,124 a year ago; assets were $44,630,000, compared
with $138,394,000, and liabilities $218,003,000, against $90.-
690,000. The trade may expect to witness further increases
in failures.
Money for loaning purposes is hard to get. The loan com-
panies found it easy some years ago to secure funds in Great
Britain for investment in Canada, but very little is available
now. In face if this, the demand for money is keen. Neither
farmers nor retailers want to dispose of the com.modities they
hold at current reduced prices, but in older to hold on they
need money. Loan companies are asking 7'>2, and in some
cases 8 per cent., as compared with 7 per cent, previously.
Earlier in the year travellers found business in Canada,
both east and west, very active. Largo orderj were booked.
Later in the year", however, the trade grew nervous and can-
cellations were numerous. It is expected that most of these
orders will be renew'ed and new orders placed when the trade
receives announcements of moderate Dit general redactions
in price lists.
A Redeeming Factor
One important factor that wi'l help to forestall business
depression in Canada are the excclier.t crops in most sections
of Canada. It is estimated that total field crops will amount
to 1,250,000,000 bushels, which represents close to a billion
dollars to the farmers. While accumulated debts on the part
of many farmers in western Canada will swallow up profits,
the purchasing power of the country ss a v.-hole will be fairly
substantial.
During the fall the volume of sales among manufacturers,
jobbers and retailers was unusually small. In the raw com-
modity markets the turnover in some lines showed new low
records in volume. The turn of the New Year, howerer,
should witness a revival of trade, because by that time returns
for crops will be in hand and the readjustment to a lovrer
standard of prices will have been established.
January 7, 1921
THE MONETARY TIMES
ESTABLISHED I S S 1
OLDFIELD, KIRBY & GARDNER
WINNIPEG and CALGARY
Insurance in all its branches.
Money loaned on mortgage in Manitoba, Sask-
atchewan and Alberta.
Rents Collected.
Real Estate bought and sold.
WE HAVE SPECIAL FACILITIES FOR SECURING WARE-
HOUSE SPACE FOR MANUFACTURERS
OR JOBBERS
JOHN STARK & CO.
Members Toronto Stock Exchange
Established 1 870
ROYAL BANK BUILDING
Corner King and Yonge Streets
TORONTO
STOCKS MORTGAGES
BONDS REAL ESTATE
We specialize on all kinds of Investment Securities such as
Standard Railway, Public Utility and
Bank Shares
Government, Municipal and Industrial Bonds
Morgages on first class Toronto City Property
TELEPHONE ADELAIDE 6250
WE INVITE CORRESPONDENCE
The Western
Agencies and Development
Company Limited
CALGARY - - ALBERTA
FARM LANDS AND INVESTMENTS
This Company is prepared to assist in the
development of Western Canada by
financing new industries of sound char-
acter.
BOARD OF DIRECTORS:
Col. J. S. Dennis, President, C. P. Taprell, Vice-
President. R. Randolph Bruce, A. E. Cross
James W. Davidson, George Lane
J. E. A. Macleod, William Pearce
H. H. Farman - Manager
REFERENCES— Bank of Montreal or any
Mercantile Agency
THE MONETARY TIMES
Volume 66
Legal Decisions Affecting Loan Companies
Sections (i and 7 of Interest Act, Referring to Descriptions of Interest Payable in
Mortgages, Give Rise to Three Important Cases — Rights of First and Third Mortgagees
— Bond Given to Guarantee a Loan — Provincial and Dominion Permanent Loan Case
rilHE Interest Act of Canada continues to require interpreta-
J- tion by the courts. A number of cases of this kind have
during the past year reached the higher courts of this country,
and a number of other decisions have related to mortgage
loans and other affairs of loan companies.
In the case of Canadian Moi-tgage Investment Company
vs. Cameron, the mortgagor entered into the following cove-
nants in a mortgage:
"First: That he will pay to them, the said mortgagees, the
above sum of one thousand four hundred dollars and interest
thereon at the rate hereinafter specified in gold or its equiva-
lent, at the office of the said mortgagees at the City of Tor-
onto, in the Province of Ontario, as follows: That is to say, in
instalments of one hundred and seventy-nine 90/100 dollars
half-yearly on the 24th days of June and December in each
year until the whole of said principal sum and interest thereon
is fully paid and satisfied, making in all ten half-yearly instal-
ments. The first of said instalments to become due and be
payable on the 24th day of December, 1907. All arrears of
both principal and interest to bear interest at 10 per centum
per annum as hereinafter provided.
"Secondly: That he will pay interest on the said sum or so
much thereof as remains unpaid at the rate of 10 per centum
per annum by half-yearly payments on the 24th days of De-
cember and June in each and every year until the whole of the
principal money and interest is paid and satisfied, and that
after maturity interest shall accrue at the rate aforesaid from
day to day, and that interest in arrear, whether on principal
or interest, and all sums of money paid by the mortgagees un-
der any provision herein contained or implied or otherwise,
shall be added to the principal money and shall bear interest
at the rate aforesaid, and shall be compounded half-yearly, a
rest being made on the twenty-fourth days of the months of
December and June in each year until all such arrears of prin-
cipal and interest are paid; and that he will pay the same and
every part thereof on demand."
Provisions of Interest Act
The sections of the Interest Act applicable in this and the
followang two cases are:
Section 6. Wlienever any principal money or interest
secured by mortgage on real estate is, by the same, made on
the sinking fund plan, or any plan under which the payments
of principal money and interest are blended, or on any plan
which involves an allowance of interest on stipulated repay-
ments, no interest whatever shall be chargeable, payable or
recoverable, on any part of the principal money advanced, un-
less the mortgage contains a statement showing the amount
of such principal money and the rate of interest chargeable
thereon calculated year or half-yearly, not in advance.
Section 7. Whenever the rate of interest shown in such
statement is less than the rate of interest which would be
chargeable by virtue of any other provision, calculation or stip-
ulation in the mortgage, no greater rate of interest shall be
chargeable, payable or recoverable, on the principal money ad-
vanced, than the rate shown in such statement.
Special Statement Not Required
In this case the Supreme Court of Canada held that as the
mortgagor had covenanted to pay the principal and interest in
ten half-yearly payments and to pay interest on the principal
or so much thereof as remains due at the rate of 10 per centum
per annum and the same rate on any sum in arrear, the mort-
gagee may collect the interest, as section 6 has been complied
with, and that if the mortgage shows the amount of principal
and the rate of interest calculated as required a special state-
ment, complete in itself, showing the amount of the principal
and the rate of interest is not necessary.
Standard Reliance Mortgage vs. Stubbs
In another case along the same line, the Standard Reliance
Mortgage Corporation vs. Stubbs, argued before and decided
by the Supreme Court of Canada at the same time as the Cam-
eron case, the mortgagor covenanted to pay the sum of $700,
"together with interest thereon as hereinbefore provided, said
principal and interest being payable as follows: The sum of
$8.75 on the first Monday of each month for the period of 135
months, and it is further agreed that the principal is $700
and the rate of interest chargeable thereon is 10 per centum
per annum as well before as after default."
"The purpose and effect of the concluding clause of sec-
tion 6 of the 'Interest Act' are certainly not as clear as couid
be desired," said the Court. "Consideration of its terms, how-
ever, has led me to the conclusion that it does not prescribe
that the mortgage shall set forth the calculation by which the
several blended payments or instalments of principal and in-
terest are computed, or that it shall be shown w'hat amount of
principal and what amount of interest is comprised in each
such payment or instalment. What the prescribed statement
is to show is (a) 'the amount of such principal money ad-
vanced'-— namely, the amount of the principal money secured
which has been advanced and is to be repaid in the blended
payments; (b) 'the rate of interest chargeable thereon' — name-
ly, the rate at which the interest to be paid is to be com-
puted; (c) The section further prescribes that such interest
shall be 'calculated yearly or half-yearly not in advance,' and
the 'statement' shall show that it is intended to be so com-
puted. The adjective 'chargeable' clearly relates to and quali-
fies the word 'rate.' The participle 'calculated' equally clearly
relates to and qualifies the word 'interest.' It cannot apply to
the word 'rate'; a 'rate of interest' is not 'calculated.' but the
'rate' is distinctly affected by the frequency with which it is
calculated or computed and interest in advance is appreciably
more advantageous to the lender than interest not in advance.
Ten per cent, per annum computed monthly is a rate ma-
terially higher than 10 per cent, per annum computed yearly.
"There is nothing in the statute which precludes requir-
ing payment by quarterly, monthly or even weekly instalments
of blended principal and interest. But however frequently the
payments are to be made, not only must the rate of interest
chargeable be stated, but it must also appear that such inter-
est is to be 'calculated yearly or half-yearly and not in ad-
vance.' If the rate be stated to be say 10 per cent, per annum,
although this is not an explicit statement that the interest is
to be computed yearly, such a computation is implied, and I
should regard it as a sufficient statement to that effect and as
precluding the computation of interest on any other than a
yearly basis. So, too, with the provision 'not in advance.'
Unless the contrary is expressly stipulated, I would read a res-
ervation of interest at 10 per cent, per annum as precluding
computation of interest in advance. That the interest in such
a case is to be computed 'not in advance' is, I think, the rea-
sonable implication from the stipulation. The statement in
the mortgage before us that the rate of interest chargeable
thereon is 10 per cent, per annum as well before as after de-
fault is, in my opinion, a sufficient statement of the rate of
interest and that it is to be calculated yearly and not in ad-
vance."
Biggs vs. Freehold Loan and Savings Co.
In the case of Biggs vs. Freehold Loan and Savings Co.,
also decided by the Supreme Court of Canada, the mortgage
was given to secure the payment of the sum of $20,000 with
interest at 9 per cent., payable half-yearly, and contained the
following provisos: —
"The amount of principal money secured by this mortgage
is $20,000 and the rate of interest chargeable thereon is 9 per
January 7, 1921
THE MONETARY TIMES
W. L. McKINNON
DEAN H. PETTES
VICTORY
BONDS
FOR SALE
Secured by all Canada's Resources
Interest Return High
Safest and most convenient form
of investment.
W. L. McKinnon & Co.
Dealers in
GOVERNMENT & MUNICIPAL BONDS
McKinnon Bldg., Toronto
19 Melinda Street.
Telephone Ade. 3870.
Government
Bonds
MUNICIPAL AND
SCHOOL DEBENTURES
ot the
Province of Quebec
Denominations of
$100, $500 and $1,000
St. Cyr, Gonthier & Frigon
BOND DEALERS
103 St. Francois Xavier Street
MONTREAL, P.Q., CANADA
Mackenzie & Kingman
Financial Agents
Investment Brokers
BONDS
AND STOCKS BOUGHT AND
SOLD ON ALL EXCHANGES
Full Particulars on Application
Correspondence Solicited
INSURANCE AGENTS
Lake of the Woods Building
MONTREAL
Cable Address : MACKING
Canadian
Government, Municipal
AND
Corporation Bonds
BOUGHT AND SOLD
Correspondence Invited.
Eastern Securities Company, Ltd.
James MacMurray, Managing Director
92 Prince Wm. St., 193 Holiis Street,
ST. JOHN, N.B. HALIFAX, N.S.
150
THK MONETARY TIMES
cent, per annum payable half-yearly, not in advance. The
said sum of $20,000 is to be due and payable in two years after
date. Provided (1) that on default of payment for two
months of any portion of any money hereby secured the whole
of the instalments hereby secured shall become payable, and
(2) that on default of payment of any of the instalments
hereby secured the interest at the rate above mentioned shall
be paid on all sums in arrear and also on the interest by this
proviso secured at the end of every half-year that the sum
shall be unpaid."
The mortgage wa.s in default for over two months, where-
by the whole amount became due and payable, whereupon the
savings company claimed that it was entitled to interest at
the rate of 9 per cent, on the amount in default, according to
the second proviso quoted above, while the mortgagor con
tended that the company could not collect more than the then
legal rate of interest — namely, 6 per cent., and in this case
the decision of the court was in favor of the mortgagor, on
the ground that the principal sum of $20,000 coming due
under the first proviso quoted above was not an "instalment
in arrear."
"The language of these provisos," said the court, "has
very intelligible application to the case of the loan where the
principal sum advanced and interest thereon at a rate agreed
upon are blended together and the sum of the amounts sc
blended is made payable by instalments until the whole
blended sum is repaid, and the effect of the first of these
provisos in such mortgage plainly is, that upon any one of
those instalments becoming in arrear and continuing so for
two months after the day prescribed in the mortgage for pay-
ment thereof, then the whole of the subsequent instalments
shall become immediately payable in advance, whereupon the
mortgagee may exercise all the powers contained in the mort-
gage for the recovery of the whole amount remaining on the
security of the mortgage in anticipation of the day specified
in the mortgage for payment of the last instalment."
Isman vs. Sinnott ,
In the case of Isman vs. Sinnott the question arose as to
whether a mortgagee holding a first and third mortgage and
who foreclosed under the first mortgage could then recovei
the amount of the third mortgage under the covenant for
payment. Isman purchased from Sinnott the Kamsack Ho-
tel. As part payment he transferred to him two mortgages
on the King's Hotel, these mortgages being a first and third
mortgage made by one John D. Yandt to Isman. Collateral
to these tvi-o mortgages, Isman gave Sinnott a second mort-
gage on the Kamsack Hotel, this mortgage containing the
following provision: —
"Provided and it is hereby agreed and understood that
this mortgage is collateral to two other certain indentures of
mortgage dated May 29, 1913, and made between John D.
Yandt of Winnipeg in Manitoba, gentleman, as mortgagor,
and the said Charles Isman as mortgagee, and that payment
in full or in part by the said John D. Yandt under the said
t\vo mortgages shall constitute payment in full or in part of
this mortgage, and that upon payment of the said mortgages
either by the mortgagor therein or by any other person the
mortgagor herein shall be entitled to a discharge of this mort-
gage, and upon default in payment by the said John D. Yandt
under the said mortgages and in the event of the mortgagor
herein making the payment in full imder the said mortgage
to the said Jacob Sinnott as provided therein, he shall be en-
titled to a reassignment of the said mortgages and to a dis-
charge of this mortgage."
Neither Mortgage Paid
Yandt did not pay either of these mortgages, assigned
to Sinnott, and Sinnott then took proceedings in the Land
Titles Office for a sale of the said Kjng's Hotel under the
first mortgage, but not being able to find a purchaser, he
foreclosed under the act. After the issue of a certificate of
title to him, he first mortgaged and afterwards sold the
premises and a certificate of title was issued to his pur-
chaser.
The Saskatchewan Court of Appeal on these facts decided
as follows: "It is well settled that the foreclosure by a first
mortgagee does not affect the right of a subsequent mortga-
gee to recover on the personal covenant in his mortgage, even
though the first mortgagee has disposed of the property to a
third person after foreclosure.
"The defendant could not have foreclosed under the third
mortgage except subject to the second mortgage. In order
to get his rights under his first mortgage he had to foreclose
under it, and thereby free the title he would obtain under the
proceedings, from the second mortgage, and this, necessarily,
freed it from the third mortgage also, because there is no
such thing as tacking under the Land Titles Act. It is true
he would be a consenting party to the wiping off the title of
both the second and third mortgages, and he would take title
imder the foreclosure proceedings 'free from all right and
equity of redemption on the part of the owner, mortgagor or
encumbrancer, or any person claiming through or under him
subsequent to the mortgagee, the mortgagee being in this
case the first mortgagee.' "
Dime Savings Bank vs. Mills
In the case of Dime Savings Bank vs. Mills the court
interpreted a bond given to guarantee a loan of $6,000, and
decided upon the liability of the guarantors according to the
terms of the bond. The bond was conditioned as follows:
"Now therefore for value received we, the undersigned,
L. G. Howell of Gait, Ontario, and Thomas Mills of Kingston,
Ontario, hereby jointly and severally guarantee the payment
of any and all sums of money which may at any time here-
after be owing and payable by Stearns-Knight Detroit Co.
when organized, to said bank, not exceeding $6,000 at any
one time, upon notes, acceptances, endorsements, overdrafts
to be made by said corporation when organized, or upon any
account whatsoever. Acceptances of this guarantee, notice of
default, renewal or extension of time of payment of any part
of said indebtedness, any releases thereof, addition thereto or
change or other foi'm of security are hereby waived and
agreed to. This guarantee is a continuing guarantee cover-
ing all indebtedness of said Stearns-Knight Detroit Co., when
organized, to said bank, not exceeding $6,000 at any one
time, upon any account whatsoever, until revoked by notice
given to said bank."
"The real meaning of the guarantee," said the coutt,
"seems to be expressed in the last paragraph of the bond,
where it is said that the guarantee is to be a 'continuing
guarantee covering all indebtedness (of the company) to said
bank not exceeding $6,000 at any one time upon any account
whatsoever.'
"I read this as meaning that the sureties were, notwith-
standing renewals, extensions, additions or changes, to be
liable 'on any account whatsoever' only to the extent of
$6,000 at any time, and that when they chose to revoke by
notice they could do so, their liability being then fixed by the
limited account. The limitation of $6,000 is intended as a
protection to the bank, not a prohibition against advancing
more than that amount."
Decision Regarding Dominion Permanent
The following case deals with the reincorporation of a
provincial loan company into a Dominion loan company, in
which an agreement was drawn up by which the shareholders
of the .Provincial Permanent Loan Company accepted stock
in the Dominion company of the same name, paid up by the
transfer of assets. One clause of the agreement provided
"in case the amount of stock to which any shareholder is en-
titled is a fraction of a share, or a number of shares and a
fraction, then in either of such cases the stock to be issued
for such fraction shall be one share with the amount of such
fraction paid up, and the shareholder to whom such stock is
allotted shall have the privilege of paying up the balance of
such shares of stock so issued."
Justice Middleton says: "Under the statute then in force,
the Loan Cororations Act, 'No shareholder shall be liable for
or chargeable in respect of permanent shares with the pay-
ment of any debt or demand due by the corporation save
only to the extent of the amount unpaid on his shaves in the
capital stock of the corporation.'
January 7, 1921
THE MONETARY TIMES
The Canadian Appraisal Company,
LIMITED
The Pioneer Appraisal Organization of Canada
ESTABLISHED 1905.
I 'HE Canadian Appraisal Company, Limited, has now completed fifteen years of service
•*■ and enjoys to-day an unrivalled position as an Appraisal organization amongst
manufacturers as well as Insurance and financial houses within the Dominion.
Several thousand properties have been appraised by us to date. Amongst these are the
most representative industrial concerns and those which are "a household word" in
practically every line of manufacture, including also all the properties comprising the
recently formed "British Empire Steel Corporation, Limited."
ADVANTAGES OF AN APPRAISAL
Its Appraisal is an expert detailed analysis which establishes beyond question both
quantities and values. To be authoritative, such analysis must be made entirely iniie-
pendent of original cost records. It is so planned as to show separately the insurable
portions of a property as distinguished from the portions that it is not necessary to
insure. It is an authoritative exhibit of values existing before a fire loss, and therefore a
tangible, satisfactory and instantly available basis of adjustment should a loss occur. It
establishes a sound, authoritative basis of costs and values for operating, accounting, cost
finding, taxation, insurance and financial purposes.
CLASSIFICATION BY INDUSTRIES
Appraisals made by The Canadian Appraisal Company, Limited, in Canada
No. of
Properties
Agricultural Implements 26
Automobiles, Aeroplanes and parts ... 15
Bakers, Grocers. Provisions, Biscuits, Pre-
serves and Candies 63
Bank Premises (including Head Offices) 745
Beds. Mattresses 13
Brewers, Maltsters. Distillers, Wines and
Mineral Waters 57
Can Manufacturers 18
Cars (Railroad and Steel) and Materials 9
Caskets and Undertakers" Supplies .... 9
Chemicals, Medical and Surgical, and
Toilet Goods 23
Clay Products, Cement, Lime, Sand. etc. 29
Dairies, Creameries, Farms, etc 16
Flour Mills. Elevators, Hay and Grain
Properties 397
Glass, China and Mirror Manufacturers 15
Iron and Steel Products, Electrical and
Other Machinery 260
Jewellers . 9
Laundries 27
Leather Goods, Shoe Factories and
Tanneries 65
Lumber and Planing Mills M5
No. of
Propertict
Mines and Colileries 32
Municipal and Government Buildingsend 42
Plants 42
Oilcloth, Linoleum and Shade Cloth .... 5
Packers. Canners, Cold Storage, Abattoirs
and Stockyards 187
Paint, Oil. Varnish. Glue, Ink and Soap
Manufacturers 33
Pianos. Organs and Musical Instruments 25
Plumbers. Steam, Gas and Water Fittings 15
Printers, Lithographers, Publishers.
Stationers and Office Supplies .... 60
Pulp and Paper Plants and Products. ... 51
Residences, Stores and Other Buildings 126
Rope. Twine, Cordage, Wire and Cable
Manufacturers' 9
Rubber. Rubber Goods 32
Shipbuilders Docks, Steamships and
Ca noes ' 215
Sugar, Glucose and Starch Plants 14
Textile Plants (Cotton. Silk. Wool, Felt) 125
Tobacco. Cigars, Cigarettes 9
Wagons. Carriages and Parts 36
Woodworking, Furniture, etc 96
Miscellaneous 75
TORONTO
Royal Bank Building
HEAD OFFICE, 364 University Street
MONTREAL
NEW YORK
Equitable Buildii
THI<: MONETARY TIMES
Volume 66
"What was done in this case was to issue 100 shares upon
which a certain sum was paid up. These shares were ac-
cepted; and even if the unpaid balance could not have hpen
called in by the company by reason of the wording of the
agreement, which gave the privilege of payment to the
shareholders, the shareholders would remain liable to the
creditors by virtue of the statute until the full amount should
be paid."
Power Developments in Canada in 1920
Both Public and Private Enterprise is Active -Ontario Hydro-Electric Power
Commission is Completing Huge Work at Chippawa— Quebec Streams Commission
Assists Development in Quebec— Keen Interest in Power from Atlantic to Pacific
By LEO DENIS,
Hydro-Electric Engineer, Commission of Conservation
AFTER the slight "surge" naturally to be expected in the
transition from war to peace conditions, the supply and
demand of hydro-electric power in Canada have become
stabilized and are now taking a more even but surprisingly
active gait. In many portions of the Dominion further instal-
lations and new power developments have not yet caught up
with the ever-increasing demand for hydro-electric energy.
This deficiency of power has been accentuated during certain
periods of the past year by the extremely low water conditions
in some of our rivers. This low water may be attributed
mainly to insufficient and uneven distribution of rainfall which,
however, was relieved in certain cases by the use of water
from conservation storage. This emphasizes the advantages
to be derived by extending this beneficial practice to its fullest
extent. The importance of our hydraulic resources has re-
cently been demonstrated by Sir Adam Beck in connection
with their utilization in Ontario where he states that the
water-power development now made saves over 6,000,000 tons
of bituminous coal per year, and it may be added that a pro-
portional saving is effected in a number of other provinces.
Leading Industries Require Power
The increase in power development results naturally from
expansion in a number of industries. In this connection the
pulp and paper industry has probably attracted the greatest
attention during the past year. Existing mills are adding to
their capacity while new ones are under construction or con-
templated, particular attraction being shown for the more
northerly portions of the Dominion where timber berths are
still available and water powers abundant. A large amount
of energy is also required for electro-metallurgical purposes
for which a total of nearly 1,500,000 horse-power is used in
Canada and the United States, and in this connection it is in-
teresting to note that of the total of 160,000 horse-power which
we export to the United States a large amount is used for
this very purpose. Among other additions to industries re-
quiring a fairly large amount of power may be mentioned
textiles, iron and steel manufacture, including special lines
of machinery; rolling mills, automobiles and parts, woodwork-
ing and furniture, while the resumption of operation in
cement mills and other building material plants also accounts
for additional power demand.
The St. Lawrence Project
One of the questions which has attracted the greatest
amount of attention during the past year in connection with
the combined interests of power development and navigation
is the momentous St. Lavsrence river project. The two fea-
tures of navigation and power production have been closely
combined in connection ^\^th the scheme and, while the for-
mer aspect is of much interest in transportation problems to
many portions of Canada and the United States, the devel-
opment of power particularly affects the provinces of Quebec
and Ontario.
The St. Lawrence as a primary source of hydro-electric
energy has long been considered one of the most valuable
assets of the world, but the magnitude of the undertaking has
thus far retarded definite action or policy with regard to' its
exploitation. The power portion of the river between Lake
Ontario and Montreal, involving some 2,000,000 to 4,000,000
horse-power, has to be considered as a whole. Consequently
although the United States' share of the total available power
is less than that of Canada, yet the project is an international
one and has, therefore, to be referred to the International
Joint Commission. This body has been conducting, at various
centres in Canada and the United States, an extensive series
of hearings in connection with the proposed scheme, covering
both countries practically from the Rockies to the Atlantic.
The physical or engineering problems have been referred by
the commission to an international board of engineers who
are shortly to report on this phase of the undertaking. But
even greater difficulties present themselves from an economic '
aspect. Now that the Niagara plants are using all the water
permitted by treaty the value to eastern Ontario and western
Quebec of the St. Lawrence power is greatly enhanced, and
it must not be forgotten that errors of judgment and ill-ad-
vised concessions would have disastrous consequences to this
portion of the Dominion.
Ontario
The outstanding feature of power development in Ontario
is the rapidly approaching completion of the enormous Chip-
pawa development of the Hydro-Electric Power Commission.
This plant is to use the maximum available head in the Niag-
ara river and will utilize 305 feet as compared with an aver-
age of about 165 feet in the other Niagara plants. The im-
posing size of the undertaking is evidenced by the five 50,000
horse-power units which are now under contract, while the
proposed ultimate installation is to comprise ten of these, or
a total of 500,000 horse-power. The permanent works of the
development are designed for the latter capacity, which
would unquestionably make it the largest water-power plant
in the world.
A certain amount of uneasiness has been created by the
temporary shortage of power at Niagara, but this should not
be taken as a continuing difficulty. In fact it was due, to a
large extent, to more or less superficial causes and not to
fundamental physical limitations. Instead of extending the
present developments, which are relatively inefficient, it was
judged that the time was ripe for a more efficient utilization
of the possibilities afforded by undertaking the project now
nearing completion. Actual construction began in 1917 and
was then intended primarily as a war measure to produce
munitions. On account of its size this development has taken
a longer time to bring into service than might have been pos-
sible by quicker but less efficient step-by-step extensions;
hence the temporary shortage of supply.
Among the other activities of the Hydro-Electric Power
Commission may be mentioned the placing in operation of the
3,600 horse-power plant at High Falls, near Perth; and the
steadily progressing work on the construction of the Nipigon
plant, located east of Port Arthur, for which the initial in-
stallation is 25,000 horse-power, while its ultimate capacity
will be 75,000 horse-power. The commission has also com-
menced work on the power development at Ranney Fall, on
the Trent river, near Campbellf ord ; the dam was already
January 7, 1921
THE MONETARY' TIMES
LOUGHEED & TAYLOR, LIMITED
CALGARY
Cables — Attorney, Calgary
CANADA
Codes— Western Union, Bentleys
LANDS
BONDS
„ Government
Municipal
Ranches School
Calgary City Property Corporation
INSURANCE
General Agents for Alberta—
British Traders Insurance Co., Limited
Guardian Insurance Co., of Canada
Scottish Metropolitan Assurance Co., Limited
LOUGHEED & TAYLOR, LIMITED
210 Eighth Avenue West Calgary, Canada
THE HAMILTON PROVIDENT
AND LOAN CORPORATION
INCORPORATED 1871
Hamilton
.anada
Paid up Capital, - $1,200,000.00
Reserve and Surplus Profits, 1,280,570.59
DIRECTORS :
George Hope, President
Joseph J. Greene, Vice-President
Colonel Henry L. Roberts William A. Wood
Stanley Mills Lt.-Col. William Hendrie
DEBENTURES ISSUED
DEPOSITS RECEIVED
Executors and Trustees are authorized by law to in-
vest Trust Funds in the Debentures and
Savings Department of this
Corporation.
Office - King and Hughson Streets
D. M. CAMERON. General Manager
Cable Address : TOPECO
Codes: West. Union and A.B.C. 5th Edn.
WILLIAM TOOLE CEO. L. PEET K. F. A. GRABURN
H. S. JONES A. J. TOOLE
TOOLE, PEET & CO.
LIMITED
Financial Agents
Appraisers and Valuators Private Funds Invested
Estates Managed
Calgary Townsite Agents
Canadian Pacific Railway Co.
Investment Managers for Alberta
Imperial Life Assurance Co. of Canada
Commercial Union Assurance Co., Limited
Edinburgh Life Assurance Co.
Agents for
Alliance Assurance Co., Limited
British America Assurance Co
Commercial Union .Assurance Co., Limited
Home Insurance Co. of N.Y.
Insurance Co. of North America
Ocean Accident and Guarantee Corporation
Royal Insurance Co., Limited
Scottish Union and National Insurance Co.
Canadian Surety Co.
Lloyds Agents (London).
CALGARY, ALBERTA, CANADA
THE MONETARY TIMES
Volume 66
built in connection with the Trent Canal system, and the
power plant, which is to be ready in 1922, will have a capacity
of 10,000 horse-power and be an addition to the seven power
plants already supplying the Central Ontario system. A
number of conservation storage reservoirs have also been
completed by the commission in connection with their Nipis-
sing hydro-electric plant.
Much progress by private interests is also noted in this
province. A new 14,000 horse-power plant, with 28,000 horse-
power ultimate capacity, has been placed in operation at
Chaudiere Falls, Ottawa. This plant forms part of the sys-
tem supplying electric energy to Ottawa and Hull and to the
nickel and copper refinery at Deschenes, Que., while a 4,000
horse-power hydro-electric plant is contemplated at Cornwall
in connection with the textile industry. Northern Ontario
has been particularly active during the past year. A 2,000
horse-power hydro-electric plant has been completed near Elk
Lake, Ont., the power being used mainly for mining. Other
plants under construction include 2,000 horse-power on the
Blanche river near Phiglehart; 25,000 horse-power for the
Abitibi Pulp and Paper Company; 9,000 horse-power for a
pulp and paper mill at Kapukasing, west of Cochrane; while
contemplated developments for mining include 5,000 horse-
power at Indian Chute on the Montreal river, and another on
the Kamiskotia river west of Timmins.
Quebec
While the province of Quebec has no public undertaking
corresponding to the Hydro-Electric Power Commission of
Ontario, much incentive and assistance is given to water-
power undertakings through the acti\-ities of the Quebec
Streams Commission. The aim of this commission is mainly
to improve water-power conditions through water conserva-
tion, storage or otherwise, thus greatly increasing the possible
water-power available at various sites, thereby rendering
them more attractive. The activities of the commission in-
clude water conservation storage reservoirs already con-
structed and in operation on the St. Maurice, St. Francis and
Ste. Anne de Beaupre rivers, and surveys for future work on
the Chaudiere river, on Lake St. John to increase the flow
of the Saguenay river, and on Lake Kenogami. The work
includes the study of possible power sites in the settled dis-
tricts and also in the northern regions, including the rivers
of the Abitibi and the north shore of the St. Lawrence.
■\\niile the great bulk of power development in this prov-
ince is under private enterprise, there are also a few devel-
opments operated under municipal ownership, and a move-
ment is reported to have recently been initiated by the Union
of Municipalities in the province to consider the question of
water-power development directly by the government, it being
felt that such further development is of material importance
to the progress of the province.
Important additions are reported to be in pi-ogress at a
number of large hydro-electric plants, such as Cedars on the St.
LawTence, and Shawinigan and Grand'mere on the St. Maurice.
These extensions aggregate an additional capacity of 130,000
horse-power, while a development of 150,000 horse-power is
under consideration at Les Ores falls on the St. Maurice river.
The city of Montreal has recently contracted for a large block
of power to operate its new electric waterworks pumps, the
maximum being 15,000 horse-power. The first part of the
work in electrifying the harbor railway has been completed;
the total trackage is 58 miles, involving an ultimate capacity
of some 4,000 horse-power. A new 800 horse-power devel-
opment to operate rubber works has been completed on the
North river at St. Jerome, while new developments or expan-
sions now under construction comprise an addition of 2,600
horse-power at Deschambault; 2,000 horse-power at St. Ra-
phael: 4,000 horse-power at Magog in connection with textile
works; and 600 horse-power at Lachute. Among the devel-
opments which are contemplated for the near future may be
noted an additional hydro-electric plant of 11,000 horse-power
capacity to be constructed at Westbury for the city of Sher-
bi'ooke; a 500 horse-power plant on the Chaudiere river for
the municipality of Megan tic; .3,000 horse-power for a pulp
and paper mill at Portneuf ; a 20,000 horse-power installation
is also under consideration for the latter industry in the Lake
St. John region, and one, also of large size, at Chelsea on the
Gatineau river; while a number of other projects of the same
character have also been under study on some of the other
northerly rivers.
Maritime Provinces
Unusual activity is to be noted in power development 'n
the maritime provinces, where hydro-electric installation and
operation under provincial government control seem to have
made a firm beginning. The Nova Scotia Power Commission
has a 15,000 horse-power hydro-electric development under
construction on the Northeast and Indian rivers to supply
Halifax, and it is expected that a portion of the energy will
soon be available. The newly-created New Brunswick Hydro-
Electric Power Commission has also sho%vn much activity and
its initial operations have taken a concrete form. This com-
mission, which was created with a similar object to the one
rn Nova Scotia, promises to be most useful to power and in-
dustrial development, its work comprising the actual construc-
tion of hydro-electric projects for the supply of electric en-
ergy. Two important developments are being undertaken in
connection with which, it may be noted, comprehensive stor-
age possibilities will also be utilized; one project comprises
an installation of some 9,000 horse-power on the Musquash
I'iver to supply St. John, and the other an installation of some
8,000 horse-power on the Shogomoc river to supply Frederic-
ton. It is expected that these plants will be in operation by
the end of 1921. Other possibilities which the New Bruns-
wick Hydro-Electric Power Commission has in \-iew for future
requirements include installations ranging from 8,000 to 15,-
000 horse-power on the Lepreau, Maguadavic, Pokiok and
Tetagouche rivers.
Further progress in power development in New Bruns-
wick includes the addition of some 2,400 horse-power to the
hydi'O-electric plant at Aroostook Fall; while the Bathurst
Lumber Company are completing a 13,500 horse-power hydro-
electric plant on the Nipisiquit river to operate their pulp
mill and saw mill. A 6,000 horse-power development is pro-
posed at 'Uliite Rapid on the Miramichi river, and attention
has again been called to the desirability of utilizing the Grand
Fall on the St. John river. In connection with the last named
the provincial government is reported to have threatened to
expropriate it from the present owners and to transfer it to
others who would develop the power immediately.
In Nova Scotia a number of smaller hydro-electric plants
have been placed in operation, among which may be mentioned
one of 600 horse-power for Wolfville, 200 horse-power for
Berwick, and another to supply Barrington.
Prairie Provinces
Provincial hydro-electric transmission lines for Winnipeg
river power are being steadily extended in Manitoba. The
line to Portage la Prairie has been completed and further ad-
ditions are planned, an expenditure of over $500,000 having
been authorized. Two hundred reeves are reported to have
petitioned the provincial government to extend these hydro-
electric transmission lines to the southern portion of the prov-
ince. The Winnipeg municipal plant is adding three units
aggregating some 20,000 horse-power. An oil-engine electric
plant of 240 horse-power capacity is under construction for
Virden, and the development of water-power at Curry Land-
ing on the Assiniboine river to supply Brandon has again been
under consideration.
Among the installations in progress in Saskatchewan
may be noted a 7,000 horse-power steam turbine addition to
the Saskatoon municipal electric plant, and a small oil-engine
electric plant for the municipality of Nokomis.
The production of cheap power is exciting much interest
in Alberta. The Associated Boards of Trade of the province
have made representations to the Alberta government and
have urged its extreme importance.
British Columbia
The resumption of greater activity in power development
is noted in British Columbia. A 300 horse-power hydro-elec-
tric plant has been placed in operation at Squamish north of
January 7, 1921
THE MONETARY TIMES
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THE MONETARY TIMES
Volume 66
Vancouver, while in the interior an important power line ex-
tension has just been completed to supply the Copper Moun-
tain mines with energy from Bennington Falls. A 500 horse-
power hydro-electric plant which will have an ultimate capa-
city of 1,500 horse-power is under construction for mining
operations near Alice Arm, and a 125,000 horse-power plant
is contemplated on the Bridge river near Lillooet.
Future Expansions
Considering the power situation over the entire Dominion,
while there has been a temporary shortage in certain locali-
ties, this may be interpreted to a certain extent as a healthy
sign of growth and not with alarm, since the primary re-
sources which may be made available in order to satisfy the
demand have by no means yet been exhausted. This condi-
tion, however, should serve as a warning note for the future.
Hydro-electric expansion has been remarkable in Canada, the
present installation being over ten times what it was in 1900,
and future prospects point to correspondingly rapid progress.
But this progress can only last until all our hydraulic re-
sources have been developed, and their exploitation should,
therefore, be most carefully and efficiently guided.
Railways Have Passed Worst Difficulties
Substantial Increase in Rates Was Feature of 1920— Fall in Commodity Prices
Make Rates Seem Higher— How Soon Can Operating Expenses be Brought
Down ?— The Amalgamation of the Grand Trunk With the Canadian National
By GEORGE W. AUSTEN
fTTHE year 1920 will be classified in Canadian railway history
A as one in which the steam railways reached the peak of
their economic difficulties. It will also be notable for the
operating consolidation of the Grand Trunk Railway with the
National Railways following the acceptance in March by the
Grand Trunk shareholders of the government's proposals
for the purchase of the road. Thus the national railway
system came, during the year, to embrace an operating mile-
age of about 22,000, and the consolidation left Canada with
only two great transportation systems, thereby simplifying, if
not lessening, the acute problems yet to be solved.
Large Rate Increases Granted
The granting of the large increases in freight, passenger,
sleeping car and excess baggage rates by the Railway Com-
mission in August alone saved both the Canadian Pacific and
the National Railways from an alarming financial showing
for the year. In the previous year the National Railways —
then consisting of the Canadian Northern, Transcontinental,
Intercolonial and Grand Trunk Pacific — showed a deficit cf
$47,000,000. Had it not been for the increases in rates th's
■would have been enlarged in 1920 to at least $75,000,000.
The wages increase that had to be granted in 1920, follow-
ing similar increases in the United States, would have brought
the operating expense ratio of the old Canadian North orn
system up to 134 per cent. But the Railway Commission
saw fit to grant 40 per cent, additions to eastern freight
rates, 35 per cent, to western freight rates, 20 per cent, to
eastern and western passenger rates up to 4 cents a mile, 50
per cent, on sleeping and parlor car rates, 20 per cent, on ex-
cess baggage, with exceptions made in the case of coal, gravel
and milk. This rate of increase applied to the end of the
year, and beginning with 1921 a reduction of 5 per cent, is
made in freight rates, and 10 per cent, in passenger fares.
On July 1 next passenger fares go back to the old basis, and
the freight rates question will then come up for revision in
the light of conditions as they then exist.
Public Opposition Was Strong
The reasons for granting increase involving an extra
burden of more than a hundred millions on the people of Can-
ada had to be very strong. The unpopularity of the award
led to a forceful appeal to the government, and the decision
was referred back to the commission. As this was late in
November, and the peak rate of increase ended at the New
Year, no change was to have been expected. Indeed, Chair-
man Carvell had made out a case on which he could rest and
let time work out his vindication.
The finances of the C. P. R. were, by common consent,
taken as a standard by which Canadian railw-ays were to be
judged as regards their rate needs. They had, during the
war, received increases totaling 35 per cent, but costs had
gone up at least 100 per cent. The operating ratio of the
C. P. R. in 1916 had been 63.87 per cent.; in 1917, 70.01 per
cent.; in 1918, 81.19 per cent., and in the six months to June
30, 1920, 87.58 per cent. In July it was 91.43 per cent. This
rapid rate of increase had been duplicated in the case of the
Grand Trunk. In the year to December 31, 1919, the ratio
was 87.43, and in the six months ending June 30, 1920, it was
99.97 per cent. In the case of the old Canadian Northern
system the ratio for the first six months of 1920 was 117.61
per cent. These figures show how fast expenses were out-
stripping revenue and leaving the railways unable to pay
fixed charges except out of reserves or capital.
Reserves Should Not Be Drained
In the case of the C. P. R. counsel for the western pro-
vincial governments argued that the system had reserves of
$317,000,000, but they did not allow for the fact that $160,-
000,000 of this was land which had not been sold, and could
be sold only piece by piece. Money had been borrowed
against this land and $52,000,000 is due in 1925. The prin-
ciple that the C. P. R. should not be called upon to cripple
itself financially by exhausting reserves to pay current deficits
was asserted by Chairman Carvell, who emphasized the im-
portance to Canadian credit of sustaining the position of this
premier Canadian security. The financial statement of the
C. P. R. showed a surplus after usual dividends of $844,249 for
the year ending December 31, 1919. The wages increase for
1920 was estimated at $14,822,000 — a rate of $22,000,000 a
year — which would have wiped out dividends and left a large
deficit. It was estimated that the original 30 per cent, in-
crease asked for by the railways would have left a deficit of
$10,000,000 after the wages increase, and therefore the extra
10 per cent, on freight, the 20 per cent, on passenger rates,
etc., was authorized. Seeing that the increases would be in
effect only four months for the year, while the wage increase
was retroactive to May, even then a small deficit was looked
for, but a surplus would result in 1921 that would offset the
loss.
Will Still Be Deficits
What will be the result of the rates increase on the
finances of the Grand Trunk and the National Railways ? No
statistics on this subject were taken into consideration by the
Railway Commission in making the judgment, because if the
C. P. R. got only enough increase to enable it to maintain a
rate of earnings sufficient to cover dividend requirements,
plus usual upkeep, the other railways could not be expected
to get on with less. If rates had been made on a basis to
make them self-sustaining they might have been doubled at
one stroke. Premier Meighen did not hesitate to tell west-
em audiences that the freight rate increases would not en-
able the National Railways to pay their way, and that annual
grants by Parliament to make up the difference would prob-
January 7, 1921
THE MONETARY TIMES
157
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PROVINCE
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ALBERTA
ALBERTA
ASSETS.
Public Buildings (includins: Stock Advance). $ 8
Bridges 2
Trunk Roads and Bridges thereon 3
Roads, District and Local
Demonstration Farms
Telephone Plant, Stock, Tools, etc 11
Ferries
Provincial Police — Buildinirs and Equipment
Loans to Creameries
Loans to United (Jrain Growers, Ltd 1,1
Advances to School Districts
Advance to Central Canada Railway — amount
due
Advance to Liquor Vendors
Lacombe & North Western Railway — Loan,
etc
University of Alberta — Loan
Kinff's Printer's Advance
Advances — School Libraries. School Sup-
plies, etc
Advances — Miscellaneous < including Drousrht
Relief)
Advances to Normal School Students
Loans to Alberta Returned Soldiers' Aid
Lacombe and North Western Railway Shares
Taxes on Forfeited Lands
Surveys
Deferred Revenue
Miscellftneous
5 FINANCIAL POSITION
Deposit (in lieu of debt) in hands of Do-
465 6^169 minion Government $ 8.107.500.00
i825;412;28 Deposit (School Lands Fund) 4.888.000.00
sia'«;n\i Deferred and overdue payments of Principal
3205409 "" School Lands 6,716.720.37
ta^'aniKr. Unsold School Lands, 6,928,869 acres at
IVdllf* $12.00 per acre 83.146.428.00
*54;i29!04 Total $138,340,082.45
OuTsull LIABILITIES.
53.207.83 Total Bonded Debt » 34,635.200.00
Less Sinking Fund 980,623.28
000.000.00
17.000.00 Net Bonded Debt as at December 31st, 1919. { 33,664,576.72
(Includini; $16,000,000 self-sastainins: invest-
523.151.16 ments.)
2.500.00 ContinKent Liability on Railway Guarantees
41.762.42 (Total Provincial Liability) • $60,748,500.00
Less C.N.R. and C.N.W. Railways (Purchased
25,810.14 and operated by (Jovernment of Canada
under Canadian National Railway Sys-
249,923.57 tem) 36.066.000.00
28,971.00
$ 24.682.500.00
15.000.00 Less G.T.P. (under aKreement of purchase
1,975.35 and operation by Government of Canada
23.274.09 under Canadian National Railways Sys-
961.762.72 tem) 4.182.500.00
528,780.06
133,037.50 S 20,500.000.00
Ajrriculture.
Embraced in the Province arc 161.872.000 acres of which it
is estimated 1,510.400 acres are covered by rivers and lakes.
leavinK 160.361.600 acres »t land. Allowiner approximately 60.-
000.000 acres for the rouKh land of the eastern slope of the
Rocky Mountains, other mountains and hills, together with
certain waste acreage in some small sections of the Province
not suitable for cultivation, leaves at least 100.000.000 acres
available for cultivation. Durinir the year 1919 more than
8,000.000 acres were actually in crop and the estimated value
of farm products for that year was $119,583,321.89, details of
which are included in the foUowinjr statement; —
Yield
Acres
Bushels
Per Acre
Price
Revenue
Spring Wheat.
4,241,903
33.936,224
8.00 bus.
$1.88
$62,101,459.92
Winter Wheat
40,600
639.450
16.76 ••
1.95
1,246.927.60
Oats
2.767.372
55.725.085
23.76 "
0.64
42.064.054.40
Barley
414.212
10,662.406
25.50 "
1.86
19,646.075.16
Flax
80.690
221.897
2.75 "
4.15
920.872.55
Rye
83.804
1,173.266
14.00 •■
1.42
1.666.023.52
Mixed Grains.
26.000
942.500
Tons
36.26 "
0.88
782.275.00
Hay and Clover
483.296
476.626
1.10 tons 20.89
9,956,717.14
Fodder Corn .
900
5.022
6.58 "
10.60
52.731.00
Alfalfa
21.553
43.106
Bushels
2.00 "
29.16
1.256,970.96
Potatoes
45.848
8,241.178
179.75 bus.
0.83
6,840.177.74
Turnips, etc. . .
12.500
2.768,750
221.60 •■
1.06
2.934.875.00
Peas
1.603
28.854
18.00 " .
3.00
86.662.00
Beans
690
6.900
10.00 "
4.00
$
27,600.00
149,583.321.89
Animals slaughtered and sold $50,000,000.00
Dairv Products 31.625.000.00
Wool Clip (2.114,819 lbs.) 1.268.591.40
Came and Furs 2.250.000.00
Horticulture 200,000.00
Poultry and Products 5.000.000.00
Total $239,926,913.29
Total acres (Grain). 1919. 7.654,681.
Coal Industry.
For the first time in the historj- of Canada, Alberta's coal
production in the year 1918 led all the other Provinces.
The following statement shows the production in 1919 :—
Domestic 2.611.009 tons $ 9,791,283.75
Bituminous 2.325,787 " 8,721,701.25
Anthracite 85,616 " 385,272.00
Briquettes 70,033 " 456,214.50
Coke
Total Value ; , $19,353,471.50
Wool Production.
The Province of Alberta is now rapidly approachiner a
premier position in the production of wool. There has been an
enormous increase in the number of sheep during the last
decade.
The following statement shows the results for the last four
years : —
1916 1917 1918 1919
No. of pounds
handled . . . 2,048,340 2,086.633 2.600,000 2,333,819
Price realized,
cents .30% .57 .60 .60
No. of pro-
ducers 950 1,150 1.088 1.132
Value $624,748.70 $1,189,380.81 $1,500,000.00 $1,400,291.40
Dairying.
"In creamery butter production Alberta has now third place
among all the provinces of Canada, first and second place being
held by Quebec and Ontario respectively. Of the four western
provinces. Alberta w!is in 1919 the leading dairy province,
although in third place in 1915. The butter output in 1919 was
$10,500,000 and the total value of Alberta dairy products in the
same year amounted to well over $31,000,000. As the result of
the standardization of our creamery butter, wider and more
appreciative markets have been secured for it. During the past
year, substantial quantities were shipped to the large markets
in both eastern and western Canada, and to the United States
and Europe." (Extract from Budget Speech of Hon. C. R-
Mitchell, delivered March 19th, 1920.)
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158
THE MONETARY TIMES
Volume 66
ably still be required for many years, until growth of traffic
on the system would increase the earnings relatively to the
amount of fixed charges. In 1919 the net operating deficit of
the National Railways, not including the Grand Trunk, but
including the Grand Trunk Pacific, was $14,117,000. On the
same basis of traffic, but with coal and other supplies and
wages up by 30 per cent., the operating deficit for 1920 would
have been $35,000,000 at least.
Economic Movements Aflfecting Traffic
This review of the financial position of the Canadian lead-
ing railways is necessary to an appreciation of the critical
position in which they were placed during the year. What
the future holds may be rather doubtful, because there are
many influences at work darkening their future. The growth
of the farmer movement, for instance, with its threat of a
north-and-south trade instead of a trans-Canadian haul, be-
gan to hang over the railways. The business slow-up that
began to show itself in the last half of the year reduced ton-
nage handled, and unless business picks up in 1921 earnings
may show a decrease. Like everything else in the inflated war
period, the dollar volume of gross earnings grew much larger,
and a contra^'tion is inevitable with the lower price of commo-
dities. The drop of grain prices in the crop season made
freight rates seem relatively excessive. The farmer who
could get only $1.75 or $1.60 for his wheat, and had to pay
40 cents to get it marketed would rightly deem his cost far
too heavy.
Can Operating Costs Be Reduced?
The great problem of the Canadian railways, as well as
the United States railways, wjll be, in 1921, as farther ahead,
the reduction of costs in accordance with commodity values
and the trend of coirunercial wages. As the minister of rail-
ways said in his annual report last winter for the National
Railways, the average wage on the system had risen from
ahout $700 to nearly $1,500. The new increases of the year,
forced by American unions, will bring the average up to
about $1,800. The average wage of the Canadian manufac-
turing industry is not more than $1,000. Granting
that the railways employ a much larger percentage of skilled
men, and that the average ought to be much higher, it can
be easily shown that railway rates of pay have been hoisted
out of proportion. If they are reduced as other values come
do\^-n and permit of rate readjustments downward the rail-
way service will be a help to Canadian development, other-
wise it may be a drag on our expansion.
Rates in Other Countries
In one of his arguments on the subject of rate increases
President Hanna quoted the ton-mile costs and increases in
many other countries. This showing was: —
"England — Passenger fares increased 50 per cent.;
freight rates increased 25 per cent, to 100 per cent.; average
freight increase, 71 per cent.
"France — Passenger rates increased 70 to 80 per cent.,
freight rates about 140 per cent.
"Belgium — Freight and passenger rates increased about
100 per cent.
"Italy — Passenger rates increased 60 to 120 per cent.,
freight rates 40 to 100 per cent.
"Holland — Passenger rates increased 75 per cent., freight
rates from 70 to 140 per cent.
"Sweden — Passenger rates increased 100 per cent.,
freight rates 200 per cent.
"Norway — Passenger rates increased 60 to 180 per cent.,
freight rates 150 per cent."
Wage Increases Were Large
These comparisons from Europe are not, however, fairly
applicable to the case of the Canadian railways. If the
McAdoo award in 1918 had not started the railway unions on
the warpath after continuous large increases costs here might
have been better controlled in view of the remarkable expan-
sion of tonnage handled during the war. Canadian railways
handle only a small fraction of freight tonnage per mile com-
pared with the United States railways, and as a whole cannot
be made to pay until traffic is thickened by a larger settle-
ment. Though the average ton-mile rate in Canada com-
pares favorably, even at the height of the new charges, with
that in almost any other country, the long distances goods have
to travel in Canada puts an enormous burden on the people.
In 1919 the gross earnings of the Canadian railways were
$382,000,000 — that is, $50 per head for every man, woman
and child, or perhaps $200 per family. The cost of what the
farmer has to buy is enhanced too much by large freight bills,
and his receipts lessened too much through the same method.
If, as seems likely, the new Republican congress puts back on
the dutiable list the food products made free by the Wilson
influence the exporters of Canadian grains, animals and other
natural products will have a severe set-back, or must rely
more and more on overseas exportation. This means that
prices will be put on an international competitive basis in
which the products of countries where costs and standards of
living are much lower will meet ours in competition. Under
circumstances such as these to maintain our agriculture and
make it grow railway costs may have to be revised, because
the export production of the country will not be able to ab-
sorb the excessive charges.
Grand Trunk Management
Problems like these belong to the future, but they take
their rise in conditions thoroughly exemplified in 1920. Such
developments as the taking over of the Grand Trunk Railway
will permit of future economies in operating. The govern-
ment agreement provided for the appointment of a board of
management on acceptance of the offer by the shareholders.
This board was to consist of two Grand Trunk representatives,
two government representatives, ' and a fifth chosen by the
four. This provision was no sooner carried out than changes
in schedules of freight and passenger trains, ticket selling
and other services were made, to eliminate overlapping.
President Hanna admitted that the real benefits of the amal-
gamation would be derived only after the Grand Trunk was
fully incorporated in the National system.
At present the board of arbitrators to fix the value of the
guaranteed and preference stocks of the Grand Trunk is work-
ing out a valuation for the system, and until that is done and
the government makes the exchange of new stock and calls
in the old, the formal incorporation is delayed. But early in
the year the Grand Trunk Pacific was taken over, the minis-
ter of railways being receiver. Early in 1921 the 9,000 miles
of the Grand Trunk system should become part of the National
system in fact, and Canada then will have completed its gigan-
tic venture in public ovniership and operation of railways.
National System Has Bad Start
Beginning with such a handicap as is inherent in operat-
ing a group of semi-bankrupt railways the National Railways
board must necessarily meet many advei'se conditions. Chair-
man Hanna issued an order during the year that no employee
of the National Railways should accept political nominations,
and several candidates for pro\'incial seats were let out be-
cause they violated the rule of no active participation in poli-
tics. This endeavor to keep the system, with its thousands of
employees, out of politics, is only one of many the manage-
ment must make to preserve the cohesion of its working force.
Appeals by the management for the same efficiency as is re-
quired by a private corporation such as the C. P. R. have not
been infrequent, but the lines have not been operated long
enough for the supcess or non-success of the experiment to be
established.
Promise of Development
The splendid thing about our present situation is that
we have a railway plant capable of serving 20,000,000 people,
with small extensions. We are paying heavily for this now,
but we should get dividends from it annually in extra busi-
ness through the large settlement and expansion this accom-
modation makes possible. Canada is blessed with a high-
class railVay service at rates that still are comparatively
low, and if future conditions are handled with skill and fore-
sight there seems no reason why the grave defects revealed
during 1920 cannot be remedied under happier circumstances
in the vears to come.
January 7, 1921
THE MONETARY TIMES
159
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Paid-up Capital, $925,000,00 Reserve, $600,000.00
Total Assets, $2,908,445.00
DIRECTORS AND OFFICERS
DAVID H. WILSON, M.D., President W H MALKIN, Vice-President
Chris. Spencer A. H. Douglas
Robert Gelletlv George Martin
R. J. Robertson
Albert Whittakkk, Inspector James Low. Secretary-Treasurer
T. D. MACDONALD, General Manager
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Bank of Toronto Building
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160
THE MONETARY TIMES
Volume 66
CANADA'S COMMERCIAL BALANCE SHEET— Imports
<'OI\ AM> KILLIOX KXI'LlltKI*
{Compiled Jor THE MONETARY TIMES by the Dominion Bureau of Statistics.)
COUNTRIES
(Fiscal years ended
March 31st)
IMPOKTS
British Ehhibe
Jnitcd Kingdom
1917 1
1918 1
1919
1920 1
Dutiable
$
75,604,932
9,102
68
18,604
Free
S
31.591.652
TOTAIiS
Dutiable
Free
rOTAiS
Dutiable
Free
rOTALS
Dutiable
Free
TOTALS
126,362,631
8,262
735,948
174,928
55,604
7,785,254
3.168.132
5.269.180
13.846
7,412,931
302,043
12,114,790
10,271
3,208,836
1,547
2,146,414
1,371,775
3,494,600
714,306
139
282
w
107,096,584
9,102
68
221,476
58.047,170
1,318
23,277,113
81,324,283
1,318
50,008,008
$
23,0'27,110
s
73,035,118
$
93,244,969
33,117.662
1
8,202
10,412
49.700
38.481
5,831,932
2,279,294
410,849
9,166
7,047,053
' 7,350,219
4,926
1,468,145
1,547
23,460
311,242
565,659
714,146
3
9;
10
isi
- British South
202,872
7,639
1,298
13,891
4,090,199
545,723
14,182
71,049
5.265,394
553,362
15,480
84,940
9,355.593
10,789
1,289.470
7.757
36.048
972.977
1,279,188
4.613.884
10.677
16.827
298.906
4.552.024
9,315
l,007,ri2
1 ,300,259
7,757
39,056
8,395,290
1.734.894
5,081,663
11,587
6,747.072
298,906
8,437.825
16,073
2,121,909
611
3,098,834
4,963,446
7,855,436
■525,804
725.536
125.228
17,123
1,953.322
888.838
4,858.331
4,680
365,878
302,043
4,764,571
5,345
1,740,691
4
5
Bermuda
J. Indies— Brit. Ind...
202
3.789,916
12,103
1,135,966
12,305
4.925,882
3,008
7,422,313
455,706
467,779
910
6.730,'245
6
7
S
Straits Settle
Other East Indies
ritisn oil
282,732
101.066
7,188.015
558,463
1,031.640
4,878
1,065,953
2.541,896
617
831,017
20
1,140,278
596,101
2,135,362
841,19.'
1,132,706
7,192,893
1.065,953
14,239,005
11,341
l,3a8,984
988
2,146.958
762,113
2,242,515
831,890
961
338,364
147,628
6,708,201
2.782,632
3,830,009
8,446
352,028
2,954,523
2
1,002,585
19
1,996,240
2,029,959
3,503,420
405
3.120,996
3.977,637
6.716.647
352,028
10,550,550
4.927
1,805,515
774
2,947.527
2,356,66,.
3,735,559
1,151.369
831
9
10
11
12
b) British West Indies
c) Egypt and Sudan.. . .
11,697,109
10,724
567,967
968
1,006.680
166.012
107.153
831 ,890
961
7.596.027
4,295
802,930
755
951,287
326,706
232,139
1,150,964
831
3,885,801
6,758
1,114,787
611
908,678
358,729
1,4'24,801
525,804
13
14
15
Malta
Newfoundland
Jceania— Australia
New Zealand....
16
lb
17
18
19
2,190,156
4,604,717
6,430,635
2,122,9.54
l,060,.53:i
2,928,941
160
139
■282
17
18
19
20
Oth'rOceania
21
•^1
•?.?,
Totals, Brit. Empire....
Foreign Countries
101,294,825
6.054
4,599
1,390
8.152
42.849,435
'2,697,472
144,144,260
80,421,642
47,633,729
128.055,371
73,324,7'27
50,346,813
123,671,540
119,369 402
54,982,257
174,351,659
6,054
2.702,071
1,390
14.896
75
23
24
Argentine Republic
Austria-Hungary
Belgium
Belgian Congo
64,010
75
1,521
920,945
984,955
75
12,973
16,795
31,298
1,107,969
1,139,267
180,138
49,723
698,435
3,222,416
3,402.554
49.723
911,407
27,536
20,060
1,973.768
24
25
26
6,744
75
11.452
16,795
707
5,563
17,517
6.270
17.517
■212,972
'27,536
20,060
72,279
•26
•/7
28
29
1,061,008
1,477
1,062,485
964,556
26,221
990,777
1,035,453
120,879
1,156,332
1,901,489
29
30
CentralAmer.States
55,066
189.977
500
55.566
189,977
91,304
172,883
91,304
172,883
56,810
156,661
.56,810
216,101
119,989
183.800
'2,009
119.989
185,809
31
Costa »<ica
59.440
,32
ij 3i
33
93.343
12,464
12
374.608
183,778
263,022
5,409
107
4,532
5.792,428
140
93,343
12,464
198,357
1,128,342
184,957
610,807
30,460
107
564
4,532
6,480,476
140
101,287
32,900
101.287
32,900
478,378
1 ,336.89U
187,306
1,085,547
14,388
66,602
53,964
66,602
53,964
1,059,557
1.954,466
158.202
3,040,953
41,252
12,457
24,945
170
715,727
492.437
16,764,341
9,208
12,457
24,945
240
1,205,229
502,656
17,585„528
105,310
34
35
r-u"? *
198,345
753,734
1.179
347.785
25,051
478.378
848,301
650
505,926
12,986
1,059.557
1,349,066
70
489,502
10,219
821,187
96,102
36
37
China
488,589
186,656
579,621
1,402
605,400
158,202
2,430,664
14,216
37
38
39
40
610,289
27,036
39
40
id) Danih W. Indies..-.
Greenl'd.IcePd.&c
Ecuador
41
564
2,835
4,838,465
3.433
3,433
2,835
5.274.0S4
997
1,598
187
3,809
27,181
988
"25i',677
988
284
3,632,900
13
3,407
8,351,894
6,323
6,336
3,407
10,630,865
42
284
3,381,823
43
44
688.048
435.599
997
1,598
2,278,971
44
French Africa
45
4,186
4,i86
46
French \V. Indies
S.Pi're&Miq'elun....
3',273
11.212
2,089
2,920
5,362
14,132
187
1.409
21,506
^
47
48
2,400
5,675
1,812
75
S,'280
7,092
75
3,150
42,560
37.147
1,695
40,297
44,'255
48
49
Oermany ■■■■■.
.50
20,294
51
S2
159,963
509
160,472
2
20,296
33
90,766
349,747
11,649,870
33
90.766
555.112
13.618,122
722,642
174,472
699,034
12,780,300
• 7,188
729,830
174,472
999,040
13,637,287
25
52
.S3
54
55
871,228
6.094,235
355,779
2,028.500
1,2?7,007
8,122,735
527,536
9,779,.526
243,651
2,475,793
771,187
12,255,319
205,365
1,968,252
300,006
856,987
25
54
Japan
55
.56
■K^''"^^
57
58
61,179
616,372
677.S51
70,650
594,140
664,790
42,238
541,809
584,047
705,443
1.943,472
2.648,915
58
Morocco
Netherlands
Dutch East Indies. . .
Dutch Guiana
2,647
1,030,349
567,987
4.54S
2.647
1.234,993
620.188
4.54S
548
820,000
69.710
201.763
548
1,054,176
2,831,642
203,473
2,171
756.914
3.210.169
87.943
10,286
1,509,255
499,231
12,457
2,266,169
3,709,400
87,943
60
61
62
204,644
52,201
234,176
2,761,932
1,710
383,134
2,5.57,111
117,732
112.275
777.635
495.409
3,334,746
117,732
61
62
63
64
65
238,232
33,61-
1,553.086
229,84(
20,452
87,007
325,238
33,617
1,653,290
260,094
20,452
92.5.-0
36,841
2.343,354
196,928
10,628
48,.508
122
18,88S
41,492
141,058
36,963
2,362,243
238,420
10,628
5,970
8,949
2,570,392
110,222
7.828
19.815
25,785
8,949
2,580,813
111,688
7,828
412,861
22,306
4,146,570
251,286
21,737
48,987
461,848
22,306
5.072,408
312.912
21,807
65
66
67
68
100,204
30,246
10.421
1.467
925.838
61,626
7(
67
Portugal
Azores& Madeira I
68
69
70
"1 4,496
10,675,287
71
72
42
3,888,80
23,71
24,14C
3,888,80'
44
6,615,961
8,433
8,477
6,615,961
1.657
4.728.732
82.231
83,886
4,728.735
232
10,675,28-
14,'264
72
San Domingo
74
14,05
830,27
3,70.
79.27(
17,764
909,54e
49,526
719,498
15,06f
89,30b
64,594
808,807
51.076
600.035
1.417
97,608
52.49;
697,64C
1,660
1 98,954
i
1.660
1.528,298
568
75
7e
1,429,344
.56'
76
78
7<
8(
Sweden
Switzerland
Turkey . . .'
58,72
4,436,32
24
332,039.32
10.09
) 41, U
) 63.00
i
1 332.180,32
9,47
99,83
4.499,32
24
664,219,65
19,57
100,144
3.000.56
10,02(
145,92
110,172
3,146,482
77.338
1,623,61S
101,516
157,193
178.8,5.
1,780,81'
336,186
7,490,79.
230.776
499.716.62.
106.26.
24,173
267,256
2,708
301,380,693
309,326
360,35!
7,758,05
233,476
801,097,316
415.58.
79
80
81
8
429,298,75!
10,294
362,607,36
8
791.906,12S
10,374
416,457,384
52,787
330,463,'27C
746,920,65
52,78-
82
83
84
8
8
8
8
Hawaii.
54.58.
39.89
49
; 1,11
3 42
i 4,89
146,61
5 18,77
55,69
40,32
i 5,38
) 146,61
) 157,08
30,491
23,28.
S IC
) 50,48
301,29'
34
*
12
30,84C
23,32£
136
50,48
301,292
3,467,326
26.
103,85'
104,83
528
169,63
2.46.
'2'24,83.'
44,324
3,467,856
169,89
2,48
328,68
149.15
399.92
97
18
56,76
291,87
2,23
3,76J
46,03-
1,73(
265,31-
7.36
6,004
403.68-
47,014
1,91(
322.086
•i99,24f
8,24'
85
86
Venezuela
Other For.Countries. . .
138,30
89
90
Totals. For. Coun...
Grand Totals
36i).438,78
461.733.60
4 340.773,26
3 383,622.69
! 701,212.04
7 845,356,30
-, 461,919,88(
372,568,49
834,488,37.
453,156.89r
339,600,902
792.7.57.79
574,'285,76
315,890,70
890,176,46
J 542,341,52'
420,202,22
962,543,746
526,481,626
389,947,71.
916,429,33
693,655,16
■ 370,872,956
1064,528,12
(a) Ceylon included with " Other British Indies " prior to 1919.
and Sudan shown as Foreign Countries prior to 1916. ((i) shown a
(6) Divided into four, viz : Barbados, Jamaica, Trinidad and Tobago, and other B, W. I, (c) Egypt
" American Virgin Islands " subsequent to 1918.
January 7, 1921
THE MONETARY TIMES
THE GREAT WEST PERMANENT
LOAN COMPANY
HEAD OFFICE
WINNIPEG, CANADA
OUR RECORD GROWTH
In 1903
In 1919
Capital.
$110,295.92
$2,413,018.81
$27,767.21
$1,050,000.00
Assets
$160,574.29
$7,423,973.29
BOARD OF DIRECTORS
President
\V. T. ALEX.^NDER
MAJOR I). E. SPRAGUE, O.B.E. K. L.TAYLOR, K.C. S. D. LAZIER
J. H C, RTTSSKLL W. J. BOYD DR. A. D. CARSCALLEN
COL. The HON. A. C. RUTHERFORD, K.C.
K. H. ALEXANDER, Secretary
BRANCHES AT
TORONTO, CALGARY, EDMONTON, REGINA, VANCOUVER, VICTORIA
LONDON, ENC, EDINBURGH, SCOT.
SHORT TERM DEBENTURES ISSUED TO YIELD 5ii
WM. MARTIN
S. P. CLARK
Clark & Martin
STOCK & BOND BROKERS
Direct Private Wire New York, Chicago,
Montreal, Toronto
Members
Winnipeg Grain Exchange
Chicago Board of Trade
Winnipeg Stock Exchange
Correspondents —
LOGAN & BRYAN, GREENSHIELDS & CO.,
New York. Montreal.
Huron and Erie Building
232 Portage Avenue - WINNIPEG, MAN.
BROOK & ALLISON
Established 1907
Real Estate, Loans and Insurance
REGINA, SASK.
ESTATES MANAGED.
VALUATIONS
RENTS COLLECTED
REFERENCES:
Sterling Bank of Canada
R. G. Dun & Co.
Bradstreets.
Money Invested on First Mortgage
THE MONETARY TIMES
Volume 66
CANADA^S COMIMKRCIAL BALANCE SH EET— Exports
«'«»l\ A>'l> KIILMON E\€LI ItKIt
(Compiled for THE MONETARY TIMES by the Dominion Bureau of Statistics).
C(.)UNTU1ES
ll-iscal years ended
MarchSlst)
KX POUTS
Canadian
Produce
1917
1918
1919
1920
Foreign
Produce
TOTALS
Canadian
Produce
Foreign
Produce
TOTALS
Canadian
Produce
Foreign
Produce
TOTALS
Canadian
Produce
Foreign
Produce
TOTALS
1
2
3
4
5
6
7
8
9
10
British Empire
United Kingdom
$
742.147,537
6,769
25,799
4,447,802
268,728
584,577
1.094,046
s
13,923,522
«■
7.%.071.059
6.769
25,799
4,452,939
268,728
601,446
1,098,356
%
845,480,069
2.285
54.232
5.065.658
69.226
814.550
2,995.630
$
15,593,330
861.073.399
2.285
51.232
5.101.614
69.226
837.178
3,009,458
%
540.750.977
11.612
76.758
11,992,135
173,515
1,179,025
2,905,426
65,445
844,244
16,626
2,646,169
51,808
10,200,582
924,932
$
20,088,139
%
560,839,116
11,612
79,142
11,997,211
173,515
1,228,281
2,936,511
65,793
863,017
16,626
2,675,4i9
52.362
10.283,393
924,932
%
489.152,637
23,550
108,131
8,649.756
1.067.639
1,249,020
4,818,053
201,616
1 .742,554
36
3,109,381
21,350
10,869.276
227,652
28
4,380,054
1,343,867
65,346
16,175,443
11,415,623
6.987 008
124 005
47.978
$
. 6.807,481
4',626
1,878
918
29.410
1,732
S
495,960,118
23,550
112.757
8.651.634
1,068,557
1,278,430
4,819,785
201,616
1,743,738
36
3.122.009
30.531
10,%4.267
227.652
28
4,380,054
1.363.795
65.346
16.940.596
11. ,538,966
7,009,626
128,254
47,978
1
Africa— British East...
Britisli South
British West
2.384
5,076
3
5,137
35,956
4
16,869
4.310
22,628
13,828
49,256
31,085
348
18.773
' i29.260
554
82.811
6
E. Indies— Brit. Ind
7
S
Straits Settle
Other East Indies
333,390
27,827
1,631,395
2,562
5,163,278
160,295
110
2,808,554
494,462
6,190
6,517,529
6,549,546
3,302,240
155,653
12.157
333,390
27.827
1.639.470
2.773
5.179.083
160.295
110
2.808.554
495,072
12,280
6,768,740
6.576.725
3.333.910
156.194
12,157
761,607
17,238
1,978,323
13,468
6,838,563
579,702
2,500
764,107
17.238
1,987.283
14,167
6,899,513
579,702
1,184
12,628
1.181
94.991
9
10
8.075
211
15,805
8,960
699
60,950
11
12
13
14
British Honduras
(b) British West Indies
(c) Egypt and Sudan....
Falkland Islands
Gibraltar
12
13
193
1.003,900
7.303
10.191,564
8.653.635
4.089,823
169.040
5.367
1,007,037
7,303
10,489,321
8,676,257
4,158,028
170,123
5,367
607,637
995,116
13,423
11,325.235
14.019.629
6.227.892
117.962
13,641
607,637
1,051,290
13,423
11.913.696
14.172,817
6,353,397
I22,.S9(I
14,328
n
18
19
20
21
22
610
6,090
251,211
27,179
31.670
541
3,137
297.757
22.622
68.205
1.083
56.174
19,928
17
18
W f ' rflnn 1
588,461
153,188
125,505
4,628
687
765.153
123,343
22.618
4,249
19
Oceania— Australia
20
21
22
Other Oceania
24
Totals, Brit. Empire
Foreign Countries —
775.900,741
904.920.031
14,291,230
790,191,971
888,788.376
16,131,655
605,159,789
21,236,329
626.396.118
561.788,003
7,891.320
569,679,323
25
26
Argentine Republic
1,673,575
1,085
1,674,660
1.203.142
17,175
1.220,317
4,603,130
389,729
4.992.859
6,126.457
, 33,168
28.463.8.55
2.070
77,027
2,703,488
33,547
46,400
43.660
30,093
27.651
890.960
6,665.805
101.578
6,329,783
2,938,026
6,946
.568
135,249
60S
9,277
2,664
6,133,403
33,736
28.599.104
2.070
77.632
2.712.765
36,2)1
46.400
43.660
30.093
27.651
891,842
6,711,760
105,788
6,858,661
2,939,001
26
97
28
664,722
54
19,367
1,028,163
30,192
22,980
15,544
4.699
6,214
508,177
408,002
66,836
2,967.053
111,044
24,810
664,722
54
19,367
1.062,545
30,192
22,980
15,544
4,699
6.214
508.177
418.399
66.836
3.014.322
112.265
24.910
4.909,453
1.763
113,549
974,368
13,620
20,392
6,733
5,192
10,365
314,384
1.954 .055
12.463
4.01.5.940
39.230
11.010
18,337
13.672
201,053,676
795
4,909,453
1,763
113,549
976,305
13,622
20.393
6.737
12,947
10,426
379,462
2,060,203
12.465
4.041.990
39.230
11.010
19.887
13.719
206,585,063
795
950,318
5,543
59,622
4,088,534
14.078
93.951
27.699
16.817
23,154
2.321,329
2,856,933
44,540
5,035.975
42,039
(c)
12.808
53.102
%.I03,142
72.815
13,631
12,512
2,299
160.788
3,060
523.488
16.902
2.158
13,181,514
12,245,439
228,805
950.318
5.643
59.622
4.091,835
14,078
93,951
27.699
16.817
23,154
2.324.-,91
3.009.570
53.296
5,137,300
42,039
(c)
13,404
53.102
102.360.853
72,815
13.631
12,512
2.299
161,535
3,060
574,315
16,902
2,158
14,030.724
12.395.296
273.133
?S
Belgian Congo
30
31
30
34,382
1,937
8
3,301
31
Central Amer.States....
3?
L^osta K
33
H H
" " 7,755
62
65,082
106,147
Monaur .
'.
.35
36
37
38
39
40
„ ' 1 *.^
36
Chile
3,462
152,637
8,756
101,325
■■■•(,-)■■■■
596
882
45,955
4,210
528.878
975
37
10,397
" " 47.269
1,221
38
39
20,055
40
Denmark
id) Danish W. Indies...
41
43
44
45
46
1,550
47
5,531,387
8.629
40 250
61,108 693
362,637
11,177
14,686
8,822
470,934
2,283
748,573
29,588,984
174,543
16.959,557
7,732,514
1,469
263
718,660
937
8.629
40,513
61,827.353
363,574
11,177
14,686
8,822
472,864
2,283
786.078
29,591 ,004
174,543
16,967,221
7,889,820
1,469
43
12,241
64,039,192
8.744
12.241
66.652.100
8.744
44
France
2,612,908
6,257,711
45
46
47
French Guiana.
French Oceania
French W. Indies. ...
231
815
187,093
231
815
187.093
1,033
7.438
163.117
1,033
7,438
163,203
48
86
49
SO
747
1,930
,50
51
52
53
S, Fi're&Miq'elon...
Greece
187,661
19.309
6,365
11,226,051
1,205,067
106,850
310
70,330
22,123
209.784
19.309
6.365
11.468.599
1.282.115
• 106.850
310
80,390
345.303
4.262
1.741
3,336,059
4,861,244
366
36,, 982
382,285
4,262
1,741
3,338.305
5,273,041
366
50,827
37,505
2.020
7.664
157,306
52
53
242,548
77.048
2,246
411,797
54
55
56
Italy
849,210
149.857
44,.328
55
56
Korea
57
58
59
60
61
62
63
64
.58
Mexico .
10,060
482,428
12,667
495,095
568,943
4,531
573,474
410.825
3,926
414.751
59
60
Monten go
4,634
1,561.480
332.785
71.411
20,373
964,552
271,022
■ 88
475
246.791
209,689
33,441
15.593
4,634
1,569.314
332,785
71.612
20,373
966.153
271,022
S8
475
246,863
209,689
33,441
15,593
26,096
198,985
996„575
65,671
10.145
1.149.123
165.700
655
22,802
283,022
367,446
77
9,448
26,096
198,985
996,575
66,318
10,145
1,149,123
168,335
655
22.802
284,251
367.446
77
9,448
17,258
5,653.218
1 .492.775
131.905
42,569
4.798,299
409,291
4.958
35
273.967
197.385
59,001
49,189
12.953.605
1,492,041
169.186
11.632
39.727
1.096.053
1 17.076
4.449. i05
1,484,416
2.336,717
464,028,183
432,744
2,256
128.695
82
40
11,218
1.151
17,258
5,781.913
1,492,775
131,987
42,609
4,809,517
410,442
4,958
35
274,185
197,497
59,001
49,189
12,953,642
1,498,535
269,186
11,632
39,727
1,108.904
1I7.,568
4,450,289
1,490,482
2,336.985
501.130,117
453,858
2,271
61
7.834
2,462,574
344,196
105,453
7,131
173,491
70,631
825
863
1,416
2,463,399
345.059
10;i,869
7,131
173,491
70,648
o-*
Dutch East Indies
63
201
647
64
Dutch West Indies-...
65
66
67
68
1,601
'"Vl
66
2.635
67
68
paragu* i
72
69
70
71
99,377
14,878
16,096
4,423
48,510
147,887
14,878
16,096
• 4,423
I.?29
218
112
70
Portugal
AzoresAMadeira I
Portugese Africa
71
72
37
6.494
100,000
74
75
76
77
78
79
80
81
82
83
84
85
74
Russia
3,755,569
39,827
130,253
4,185,822
39,827
4,008,475
45,087
1,524
4,009,999
45,087
6,164,658
39,663
47.013
66.886
231.095
9.280
19.220
7.665
621.023
454,873.170
300,112
324
224.964
2.091
505
6.389.622
41.754
47.013
67.391
231.095
9.280
19.226
7.870
621.023
477.695,659
312.880
324
75
76
(, , . **
77
aerDia.
22,154
326,179
79,966
' 18,2i5
672,508
280,616,330
462,511
22,154
331.179
79.966
18.2is
673.390
290.578,773
532.343
54,780
98,256
22,577
15,596
2,921
417,812.867
505.066
30,810
85,590
98,256
22,577
15,596
8.082
441,390,926
627,252
78
^,
5,000
12,85i
492
r,i84
6,066
268
37,101,934
21,114
15
79
Canary Islands
Spanish Africa
80
205
22.822.489
12,768
81
82
<5 't prIanH
882
9,962,443
69.832
4,161
23,578,ii3
122,186
83
Turkey
United States
84
85
86
87
88
89
90
91
92
93
fe) Amer. Virgin Islands
87
8R
Hawaii ...'.'.'.'.'.'!'.!!!!
247,752
12,808
719,918
68.549
238.911
375.475,027
6.313
254.065
12,808
720,494
68,549
238,965
493.027
33.153
751,436
97,916
103,935
742
199
493,769
33,352
751.436
97,916
103,935
709,246
68,551
1,071.805
332.952
40.441
60O
709.846
68.551
1.071.805
332.952
40.441
163,970
292,547
1,489,667
689,538
404.007
763,631
200
270
401
1,085
141
214,803
164,170
292,817
1,490,068
690.623
404.148
978.434
716.979.386
89
90
P f R'
576
91
Urugua-y-
92
54
93
Other For.Countries
Totals, For.Coun
Grand Totals
94
13.544.102
27.835,332
389,019,129
651,239,412
30,010.349
681,249,761
611.284.017
31,085,150
642.369,167
677.704,095
39,275,291
1151375.768
1.179,211.100
1540,027,788
46.142.004
1586,169,792
1216.443.806
52,321,479
1268.765,285
1239,492.098
47,166,611
1286.658.709
(a) Ceylon included with "Other British Indies" prior to 1919. (6) Divided into four,
lr» Egypt and Sudan shown as Foreign Countries prior to 1916. (d) Danish West Indies shown a
Islands shown as "Danish West Indies" prior to 1919.
z\ Barbados. Jamaica, Trinidad and Tobago, and other B, W, I,
'American Virgin Islands" subsequent to 1918. Oe) American Virgin
INSURANCE
Jiiiliiiiry 7, KjJI
THE MONETARY TIMES
Page i6s
164 THEMONETARYTIMES Volume ^6
GROUP INSURANCE
AN INVESTMENT
That Benefits Both Employer and Employees
ly/IANY employees want life insurance protection but are not insurable
^^* and cannot get a policy themselves. Many are not insured because
they spend all they earn and think they cannot afford a policy. Many
who are husbands and fathers do not fully realize their responsibilities
towards their families, and fail to insure.
Our Group Plan puts all employees into the insurable and insured class. U gives
each of them a Policy without medical examination and without expense. Every
employee is thereby covered by life insurance — as every worker and producer
ought to be.
It hnks the home and the dependents of the employee more closely to his work
and his employer. The good will and appreciation of the home and family is a
most important factor in developing loyalty and co-operation.
it tends to retain the better class of men and women in office and plant who are
of greatest worth to the success of the business and who appreciate most the pro-
tection provided for them and their dependents. Their appreciation grows as
time goes on, when they see the cash benefits that are derived from the insurance.
Group Insurance thereby becomes an investment that gives an increasing return
to the employer by way of a more interested class of employees, better team work,
greater efficiency and reducing costs through labor turn-over.
It puts on a business basis the relieving of the distress that follows the death or
total and permanent disability of employees, free from discrimination and free
from the stigma of charity.
The cost is very low for the many benefits that are guaranteed, the premium
usually amounting to less than 1% of the payroll.
Canada Life Group premium rates are on the lowest scale obtainable. The Policy
contains every liberal feature of real value to employer and employees. Moreover,
Canada's oldest Life Insurance Company is in a position to give the best possible
service.
Let us send vou our proposition. It mill interest ijou
CANADA LIFE ASSURANCE CO.
HEAD OFFICE - TORONTO
January 7, 1921
THE MONETARY TIMES
Life Insurance in Canada in 1920
New Business Exceeded 1919 Record — Mortality Experience Slightly Better,
Indicating that Pre-War Improvement is Being Resumed— High Rates on Bond
Investments Attracted Large Part of Companies' Funds— Increase in Policy
Loans — Life Insurance Without Medical Examination Being Considered
T. A. DARK, F.A.S.
Assistant Manager and Actuary, Excelsior Life Insurance Company
UNQUESTIONABLY the outstanding feature of the life in-
surance business for the year 1919 was the phenomenally
large volume of insurance written, the increase over the pro-
duction of 1918 being approximately 70 per cent. This deluge
of business first became clearly evident during the influenza
epidemic of 1918, although the epidemic itself was only one of
several powerful factors contributing to the general result.
That these influences, or others as effective, continued to oper-
ate during 1920 is evident from a glance at the following fig-
ures. The results for 1920 are, naturally, only approximate:
Insurance Written and Paid for in Canada
Year Amount Year Amount
1915 $221,119,558 1918..— _.$313,251,556
1916 231,101,625 1919 524,543,629
1917 282,120,430 1920 625,000,000
Uncertainty at Beginning of Year
It will be seen that the business put on the books of the
Companies during the last two years was nearly one hundred
millions in excess of that acquired during the four previous
years. One need not seek far for an explanation, although
the result for 1920 is better than many would have predicted
at the beginning of the year. At that time there existed a
very general feeling that the period of high wages, high prices
and apparent general prosperity would not continue much
longer, and when the end did come it would bring about a
decided slump in the volume of life insurance transacted.
Recent events indicate that the crest of high prices and hign
wages has been passed, but the downward trend, so far aS
Canada . was concei-ned, commenced too late in the year io
have any serious effect on production. Similarly the value of
money continued much depreciated, necessitating the buying
of larger amounts of insurance in order to maintain the same
standard of protection for one's dependents as in former years.
Here also the reaction has been too recent to have had any
appreciable effect.
Then, too, in January, 1920, just as life insurance officials
and the public generally were beginning to breathe easily,
hoping that the predicted recurrence of the influenza epi-
demic of 1918-1919 would fail to materialize, claims from this
cause began to be reported to the Head Offices. It is true that
the disease passed over the country with an incomparably
lighter touch than before, but it reached from Atlantic to
Pacific and brought back vividly the need of protection so
strongly emphasized during the previous outbreak.
Previous Records Exceeded
These forces with another to which too high tribute can-
not be paid — the increased efficiency of the life insurance
salesman — made 1920 a banner year in production.
Business in Force in Canada (in thousands)
Gain as
Gain over % of business
End of Year Amount prev. year written
1914 $1,242,160 $73,570 34%
1915 — __ 1,311,616 69.456 32%
1916 1,422,179 110,563 48%
1917 1,585,042 162,863 57%
1918 1,785,061 200,019 64%
1919 2,187,837 402,776 77%
1920 probable 2,637,837 450,000 75%
Little .comment on these figures is necessary. The ap-
proximation for 1920 has been obtained by using as a basis tbc
results of a number of Canadian companies whose experience
would probably be fairly representative of all companies doing
business in Canada. It is natural that the same influences
which have made for larger production should have acted as a
decided check on lapses and surrenders. The result has been
that unnatural terminations (lapses and surrenders) were in
1919 only four times the natural terminations (death claims
and matured endowments), while in 1914 the former were .s;x
times the latter.
Conservation of Business
While 1920 repeated the favorable experience of 1919, the
watchword now is "Conservation of Business." How import-
ant this problem appears at this time may be judged by the
fact that at the meeting of the Association of Life Agency
Officers held in Chicago on November 10th and 11th the gen-
eral subject for discussion was "The Relation of the Agent to
the Conservation of Business." The subject was approached
from many angles, among them being: —
1. Qualities which general and local agents should pos-
sess to be effective in this w'ork.
2. Cost of lapses.
3. Value of institutional advertising in a conservation
campaign.
4. The manager's function in the training of agents.
5. The method of compensation most useful in keeping
business on the books.
Conservation begins when the prospect is approached.
The advice given as to the proper plan of insurance and the
proper explanation of the plan does much to determine
whether the policy will be persistent and the holder a staunch
friend of the company. Lapses and surrenders can be pre-
vented also by a careful selection of new applicants. The
risk which is poor from either the physical or financial stand-
point should be avoided because each such case submitted to
the company costs the present policy-holders money. Further
the old policy-holder is entitled to and should receive the
same service as the more recent member — a service which
should not end until his policy terminates in a natural way.
Mortality Experience
Each year in the report of the Superintendent of Insur-
ance there is published a table giving as accurate a represen-
tation of the mortality per 1,000 among insured lives as can
be gathered from the returns of the companies reporting.
They include active companies doing ordinary business, active
industrial companies, assessment and fraternal societies, and
non-active and retired companies. WTaile the results at the
best are only approximate, they are interesting as indicating
the trend of mortality during the last decade.
Death Rate per 1,000 Among Insured Lives in Canada
Year Rate per 1,000 Year Rate per 1,000
1911
9.7
1916-——
10.6
1912
9.3
1917
11.1
1913
8.7
1918
14.1
1914.
8.6
1919
8.3
1915
8.8
1920
8.2 (est.)
It is clear that the gradual but quite appreciable improve-
ment in mortality extending from 1911 to 1914, interrupted in
1915, was resumed in 1919. The figures for the years 1915
to 1917 inclusive show the excess mortality due to war losses,
THE MONETARY TIMES
increased during the last quarter of 1918 by the abnormal in-
fluenza claims. It may be interesting to add just here that
the first influenza epidemic was responsible, in the six months
from October, 1918, to March, 1919, inclusive, for claims on
the lives of Canadian policy-holders amounting to over twelve
and a half million dollars. Most of those claims were in
curred in 1918.
A brief reference has already been made to what may be
called a minor outbreak of influenza in the early months of
1920. No figures are as yet available to measure, even ap-
proximat(-ly. the losses incurred in 1920 from this cause, but
though considerable, they were not sufficient to adversely
affect the mortality of the year as compared with 1919.
The following table shows, for several Canadian com-
panies, the mortality experienced in 1919, calculated as a per-
centage of the expected, and the probable figures for the same
companies for 1920: —
Actual mortality as percentage of
Company expected ■
1919 1920
A 55% 60%
B 60% 55%
C 60% 55%
D 55%. 45%
E — 50%. 50%
F 60% 55%
G 55% 55%
The Investment Situation
Principal Investments of Canadian Companies
(Amounts are given in thousands)
Loans on real estate. Loans on policies. Bonds and debentures.
% of total % of total '^'c of total
Year. Amount. assets. Amount. assets. Amount. assets.
1913 .niG.571 34 $41,990 12 $133,087 39
1914 122,358 33 48.773 13 143,486 39
1917 119,275 26 56.318 12 209,132 46
1918 115.515 24 57..588 12 246,518 51
1919 114,387 22 58.376 11 285.786 54
The above table shows that, v*'hile at the end of 1914
mortgages on real estate formed 33 per cent, of the assets of
Canadian life insurance companies, and bonds and debentures
39 per cent., the corresponding figures at the end of 1919 we -e
22 per cent, and 54 per cent. In these six years the amount
invested in mortgage loans actually decreased, although in the
same time the total assets of the companies increased 55 per
cent., or .$188,000,000. Of this increase in assets $153,000,-
000, or 81 per cent., have been invested in the bonds and de-
bentures.
Bonds and Debentures
All Canadian life insurance companies subscribed very
liberally to the various war loans and this fact is largely re-
sponsible for this very decided change in the character of their
investments. In addition, the slackening in building activity,
■«ith the consequent lessened demand for loans, has had its
effect as have also the good crops and high prices which have
been obtained for them throughout the Dominion. Nor must
it be forgotten that the yield on securities of the highest class
has been gradually rising until during the last quarter of 1920
rates undreamed of only a few years ago have been realized.
One result of the diminishing difference between the rates
realizable on mortgage loans and on bonds has been to divert
a considerable amount of funds to bond investments which
would otherwise have gone into mortgages. About 310 mil-
lion dollars represented the investments in bonds and deben-
tures at the end of 1920.
Mortgage Loans
It is quite certain, however, that the present fairly gen-
eral depression in trade will set free a large supply of money
and have a direct tendency to bring about a more active de-
mand for high-grade bonds. This in turn wnll automatically
raise the price of bonds (unless the supply keeps pace wi^h
the demand) and reduce the yield, thereby swinging the in-
vestment pendulum once more toward mortgage loans. Not
until the autumn of 1920 did there seem to be any very marked
upturn in the demand on the part of borrowers for mortgage
loans. During the last few months of the year applications
for loans seem to have come in quite freely and, judging by
reports received, the amount invested in this class of security
at the end of 1920 approached $120,000,000,
I'olicy Loans
The loan privilege of a life insurance policy is exceedintjiy
valuable when properly used, but quite mischievous when
abused. Among the advantages of loans on insurance policies
over those obtained from other sources are —
1. No collateral, other than the policy, is needed.
2. Money can be obtained quickly and without publicity.
3. No time for repayment is stipulated.
4. The rate of interest charged is often lower than the
current rate, especially on old policies where the rale
is stated in the contract.
Life companies in general have been experiencing an in-
creased demand for policy loans during the last few montl:s,
the causes of which are fairly evident. In the first place, to
assist in the process of deflation banks have been reducing
their lines of credit and have made it more difficult for clients
to borrow from them by raising the rate of interest charged.
As a result many persons have been obliged to borrow on
their policies for legitimate business purposes. Others, wish-
ing to take advantage of the very attractive prices at which
the very best Dominion, provincial and municipal securities
have been obtainable of late, have borrowed on insurance poli-
cies, intending to repay the loans out of future savings, or,
perhaps, in the hope of making a profit from an early sale.
In the prairie provinces the increased demand for policy loans
is probably largely due to the desire of many farmers to hold
their wheat for higher prices or to their inability to obtain
cars for shipments. Some of these factors also entered into
the recent increase in applications for mortgage loans already
mentioned.
Some policy-holders, however, have been guilty of mo'.-t-
gaging the protection for their families — or, as it has been
aptly put, of borrowing from their wddows and orphans — for
luxuries such as motor cars, and in amounts in excess of actuil
needs. To make matters worse, the majority of borrowers do
not repay these loans and the policies ultimately lapse.
Agents do a real service to policy-holders by discouraging
loans and by keeping them down to the minimum wherever
possible. Moreover, they should urge that they be repaid in
full at the earliest possible moment.
It is estimated that loans on policies increased during 1920
to at least $60,000,000.
Dividends
It was inevitable that life insurance companies during tha
past few years should have had to bear their share of the pre-
vailing high cost of conducting business. Skilful administra-
tion did much to lighten this burden, but in addition the com-
panies had to face a very large e.xtra mortality due to war
and epidemic. As a result many companies found it advisable
to make some reductions in their dividends for 1920 (and In
some cases for earlier years), though in no case was the re-
duction serious. No definite information is yet available con-
cerning the action of the companies in connection with divi-
dends for 1921, but it is unlikely that there will be much
change.
Prospects are bright, hoviever, for a comparatively early
improvement in dividends or refunds of premium payments,
as they might more properly be called. Mortality, as we have
seen, has dropped to its pre-war level, the rate of interest now
being realized is very satisfactory while the expense rate is
not excessive. Even though the large volume of business
\vritten in 1919 and 1920 continues, as is hoped, the strain
thereby placed on the surplus of companies will be temporary
and will ultimately be more than made good, t
Life Insurance Without Medical Examination
It will doubtless come as a surprise to many to learn th.at
some companies are very carefully and seriously considering
the possibility of entertaining applications for life insurance
for amounts not in excess of $1,000 without medical examina-
tion. This idea is not, as might be supposed, the direct result
of the practice of granting group life insurance without medi-
January 7, 1921
THE MONETARY TIMES
cal examination. Nor is it altogether new. Although so far
as the companies writing ordinary life insurance in Canada are
concerned it would be an experiment, industrial companies for
some years have been writing small risks (maximum aboi't
$250) in this way and have experienced a favorable mortality
in this class. In Great Britain three or four companies doing
ordinary business have been issuing policies up to £250 with-
out medical examination with good results. One at least of
these companies has been issuing policies up to £1,000, with
the proviso that if death occurred in the first three months
only one-third of the sum assured would be paid, if death oc-
curred in the next three months two-thirds would be paid, and
thereafter the full amount of the policy. This scheme al.so
has shown satisfactory results.
This idea, while it will require careful working out, has
many features to recommend it. For e.xample, large stretches
of our Dominion are very sparsely settled, and other parts,
better settled, are poorly supplied with medical men. Under
such circumstances it is often exceedingly difficult to have a
medical examination made. Even where medical examiners
are readily available the agent often finds it hard to arrange
a time for examination convenient alike to the applicant and
the examiner. This takes up a great deal of the agent's time
and it is a question whether this time could not be used by the
agent with more profit to himself and the company in seeking
new business. Then, too, agents occasionally meet persons
who do not want to take the time or trouble to go to a medical
man for an examination, even though the company is paying
the fee. It is not that they have any fear of not being able
to pass the medical test. They are just temperamentally in-
diff'erent.
Under this plan the applicant would be required to com-
plete an application in the usual way. He would have to
give a complete family and personal history and answer a
series of questions designed to bring out all facts within his
knowledge which would have a bearing on the company's deci-
sion as to acceptance or rejection of the risk. Should the
information brought out in this way be unfavorable in any
particular a medical examination might be required. It is
probable that certain plans of insurance, such as term insur-
ance, would not be granted under this scheme, also that cer-
tain classes of applicants would have to undergo oxaniinaiion
in all cases.
Canadian life insurance companies have ah -ays had the
well-deserved reputation of being aggressive and desirous of
living up to the full measure of their opportunities. VVhetiier
this scheme offers a safe means of extending the benefits of
life insurance more widely remains to be seen, but it is fairly
certain that it will be given an early trial.
The -Agency Field
A brief reference has already been made to the efficient
work of life insurance salesmen. It is being more than ev^r
recognized by company executives that in the past too much
time and money have been wasted on unproductive agents. It
seems only fair to the real producers, who are giving service
alike to their clients and their companies, that thty .vhoukl be
protected against the interference of the part-time man, the
spotter and others with no regular company affiliation. Dur-
ing the past year it has been shown conclusively by one large
.-Vnierican company that a carefully educated and trained
agency organization of proven worth can do more elfective
work in the field than a larger organization cf unqualified and
untrained men. And the results are more beneficial all around
— to the company, to the agency force and to the policy-
holders alike. The company in question, by a gradual house-
cleaning, reduced its agency establishment to one-third the
original number and from this smaller force received double
the former volume of business.
There is, indeed, much food for thought here. In no line
of effort can incompetents and misfits do so much harm as in
the business of life insurance. The time is approaching when
many companies will not engage agents who have not followed
a prescribed course of study and training, in fact, several
Canadian companies already have regular agency instructors
to whom is entrusted the training of the prospective agent.
Other companie.s have encouraged their representatives to at-
tend the School of Life Insurance Salesmanship at the Car-
negie Institute of Technology, Pittsburg. Here not only aj'e
they taught the theory and principles of life insurance but
they are also carefully instructed in the theory of psychology
and given practical experience in its application to salesman-
ship, particularly the sale of life insurance. As these better-
equipped men go about their daily work they cannot fail to
bring about a more enlightened and favorable public opinion
and to raise the business of selling life insurance to a much
higher plane. Not only is life insurance being more intelli-
gently sold but it has become an important factor in the ques-
tion of credit. Bankers are advocating it to their clients con-
stantly and lend much more readily when they find that the
prospective borrower is carrying a proper amount of life in-
surance. This attitude is due not only to the increased secu-
rity afforded by the insurance, but also to the fact that a man
who is provident enough to protect his dependents is more
likely to make a satisfactory borrower.
Huge Savings Are Represented
A writer in "The New England Pilot," published by an
American life insurance company, says: —
"Speaking of thrift as expressed in premiums, the New York
Sun said last May of the new business of 1919: 'Every dollar
of this insurance represents saving, investment, foresight, pro-
vision for the future. If there have been fools for spending
in these flush times, there have been wise men for saving, and
the benefits of their prudence will endure." As someone has
pointed out, buying life insurance during the recent past may
have been a craze, but it certainly was not an extravagance
nor a dissipation. If this was true of last year, it is true in
much greater degree of 1920.
"The fact is that our people are not buying enough, in-
stead •f too much; or, rather, they have just begun to bay
enough. One of the most important contributing causes of
the wonderful growth in the popularity of life insurance has
been this— its increased adaptability to human needs. This is
seen markedly in monthly income insurance, business insur-
ance, and insurance to cover inheritance taxes. To a large
extent the explanation and the justification of the activity is
found in this great extension of service. The general liberali-
zation of policy contracts and the diversity in their forms of
applied usefulness explain much of the increased demand for
the all-embracing protection of modern life insurance."
These are permanent factors and warrant the hope thai,
although the spectacular strides of 1919 and 1920 may not
soon be repeated, life insurance is entering on an era of strong,
steady growth and prosperity. This development is expected,
although experience has shown that life insurance production
follows more or less closely the rise and fall of commodity
prices, and with declining prices one would logically expect .i
lessened production. To offset this natural tendency is at
once the task and the opportunity of life insurance salesmen.
FEWER SHIPS IN .MONTREAL HARBOR
Statistics compiled by the harbor commission for the
navigation of the past .season show that the total number of
trans-Atlantic ships entering the port was 638, a drop of 64
as compared with the previous season. The tonnage, how-
ever, totalled 2,020,519, against 2,041,6.38 in 1919, showing
that the average tonnage per ship was higher. The actual
importance of the port's tonnage was greater than in 1919,
since the total number of ships arriving there last year in-
cluded 229 ships built for the United States Shipping Board,
against 120 of the same ships arriving this year.
The main part of the tonnage this year was British, com-
prising a total of 460 ships, with a tonnage of 1,581,499. Next
came the United States with 120 ships and a total of 225,855
tons. Inland navigation showed considerable slackness, the
number of ships being 4,403, with tonnage of 4,287,714, against
7,444 ships with 4,357,734 tonnage in 1919.
168
THE MONETARY TIMES
Volume 66
Fire Loss Second Largest on Record
1920 Total is $27,371,574, Compared With S23,207,(J47 for 1919, and
$31,815,844 in 1918— April and December Were Heaviest Months—
301 Fires With Loss of $10,000 and Over— Fatalities Numbered 224
CANADA'S fire loss in 1920, as estimated by The Monetary Feb. 13, $100,000, Hayden-Gibson theatre block, Woodstock,
Times, was $27,371,574, which is $4,000,000 higher than N.B.
in 19iy, and is exceeded only by 1918, when the exceptionally Feb. 27, $160,000, Bank of Nova Scotia block, Sydney, N.S.
high figure of $31,815,844 was reached. There were 301 fires, Mar. 4, $100,000, McKinnon Building, Toronto,
causing a loss of $10,000 and over, compared with 288 in 1919. Mar. 6, $125,000, G.T.R. freight sheds, London.
A slight change was made in compiling the figures for Mar. 8, $100,000, warehouse Dominion Steel Corp., Sydney,
1920, a more liberal estimate for unreported fires being made. N.g.
This accounts, in part, for the increase in the estimated total jyjgj. 9^ $100,000, Port Arthur Electric St. Ry., Port Arthur,
loss, but there is no doubt that the actual monetary damage jj„,j. ^^4^ $150,000, St. Joseph's Catholic Church, Buckingham,
was greater than in 1919. Que.
The results may be summarized as follows: — Mar. 16, $100,000, five buildings, Annapolis Royal, N.S.
1917. 1918. 1919. 1920. Apr. 1, $150,000, Jewish synagogue, Montreal.
Average monthly ' ^P*"- '^' $400,000, car barns of Winnipeg St. Ry., Winnipeg.
loss $1,673,840 $2,651,320 $1,933,970 $2,280,964 Apr. 11, $150,000, several stores, Notre Dame du Lois, Que-
Loss per capita.. $2.60 $4.11 $2.90 $3.42 Apr. 11, $150,000, cannery plant, Inverness, B.C.
Fires with damage ^P*'- ^^' $440,000, London Collegiate Institute, London,
of SIO 000 or -^P""- ^^' $200,000, factory of St. Henri Shoe Co., Montreal.
fyy^^' ' 238 256 288 301 Apr. 27, $100,000, Dearborn and Co., Ltd., St. J9hn, N.B.
Apr. 28, $100,000, Pioneer elevator, Killam, Alta-.
The Monetary Times' record for the past four years shows Apr. 29, $200,000, Essex County Sanitorium, Windsor, Ont.
the following monthly losses: — May 15, $100,000, garage and 38 cars, Digby, N.S.
Month 1917 1918 1919. 1920. '^^V ^^' $100,000, Eureka Pure Bred Stock and residence,
January . $ 1,918,660 ? 2,688,556 $ 3,915,290 $ 2,637,850 Duncan, B.C.
February 2,009,953 2,243,762 1,091,834 1,895,575 May 19, $150,000, Wallace Cannery freighter. Prince Rupert,
March 2,050,650 1,682,286 2,154,095 1,793,200 B.C.
April . . . 1,317,714 3,240,187 1,080,070 3,229,.500 May 20, $100,000, bakery, Milford, N.B.
May 1,163,110 3,570,014 1,785,130 2,001,819 May 21, $105,000, building, Toronto.
June 1,184,627 3,080,982 3,337,530 1,424,319 May 27, $200,000, Cote Mills, St. Joachim, Que.
July l',101,734 3,369,684 1,118,377 1,426,850 May 30, $100,000, lumber yards, Ottawa..
August 1,230,183 3,110,445 1,374,495 1,857,800 June 13, $150,000, Moyneur, Ltd., Ottawa.
September 1,301,700 917,286 1,940,272 2,480,485 June 13, $200,000, Bishop Lumber Co., Sault Ste. Marie, Ont.
October . ' . '704,605 5,119,145 1,023,288 2,467,901 June 16, $200,000, John Watson Co., Ayr, Ont.
November 959,049 1,059,580 2,339,870 2,769,800 June 20, $100,000, Balmoral Apts., Vancouver.
December 5 144 100 1,733,917 2,047,496 3,386,475 July 5, $100,000, Western Printing & Litho Co., Calgary.
' July 10, $100,000, Mann axe factory, St. Stephen, N.B.
Totals $20 086 085 $31,815,844 $23,207,647 $27,371,574 July 20, $100,000, R. D. Patterson's chemical fertilizer plant,
■ ' r <^ A AAA J St. John, N.B.
The following table gives a list of fires of $10,000 and j^j^ ,5, if 100,000, Currle-Williams Cannery, Ladner, B.C.
over, month by month, compared with five previous years:— j^^j^ 39^ $100,000, two-story biiilding, St. Thomas, Ont.
Month. 1915. 1916. 1917. 1918. 1919. 1920. Aug. 4, $100,000 business block. Carp, Ont.
January 35 28 28 43 25 31 Aug. 7, $100,000, business section, Morinville, Alta.
February 25 30 31 21 18 33 Aug. 19, $200,000, factory, St. Tite, Que.
March " 24 30 26 16 28 23 Aug. 24, $400,000, Brunswick Hotel, Moncton, N.B.
April .22 13 13 24 26 32 Sept. 5, $150,000, rink and d&iry, Ottawa.
May 23 23 11 27 20 19 Sept. 9, $200,000, plant, Montreal.
June 18 9 17 19 31 8 Sept. 9, $115,000, sawmill, Powell River, B.C.
July 11 13 16 24 22 16 Sept. 18, $100,000, military huts, Barriefield, Ont.
August 10 14 14 23 16 21 Sept. 21, $200,000, business section, Brockville.
September .20 12 10 14 17 30 Sept. 24, $500,000, lumber mill, Charlo Station, N.B.
October 17 14 15 12 19 27 Oct. 11, $150,000, lumber mill, Stewiacke, N.S.
November 13 14 26 14 25 29 Oct. 14, $500,000, plant, Tillsonburg, Ont.
December 19 18 31 19 41 32 Oct. 15, $200,000, business section, Ste. Stanislas de Kostka,
_ . Que.
Totals 237 218 238 256 288 -301 Oct. 17, $100,000, mill. Port Arthur, Ont.
Oct. 19, $300,000, business section, Wadena, Sask.
Fires causing damage of $100,000 and over were as Oct. 29, $200,000, police buildings, Brandon, Man,
follows: Nov. 10, $400,000, warehouse, Winnipeg.
„ ^„„ r. . T. J ^ HT ^ I Nov. 12, $100,000, department store, Sydney, N.S.
Jan. 8, $500,000, East End Garage, Montrea . ^^^ ^, ' ^ ^J Vancouver.
Jan. 9, $120 000 Creighton's garage Toronto^ ^^^ $150,000, parish ha.ll, Ottawa.
J&n. 11, $175,000, Richmond Paper Co., warehouse, Halifax. ' J,.. ' . \. •, ■ ■ ,- r> 1,
Jan. 18 $300,000, Empire Hotel, Grand Hotel and three stores, ^ov. 21 $500 000, retail business section, Quebec.
p J Nov. 22, $100,000, building, Montreal.
Jan 21^''$140,000, J. Bambrick and Ottawa Printing Co., Nov. 30, $100,000, hospital, Gravenhurst, Ont.
' Ottawa. Dec. 1, $125,000, building, Wilfville, N.S.
Jan. 30, $125,000, Westminster Presbyterian Church, Toronto. Dec. 1, $250,000, business section, Jasper, Alta.
Feb. 8, $100,000, building in Halifax. Dec. 7, $100,000, bakery, St. John's, Nflld.
January 7, 1921
THE MONETARY TIMES
169
Dec. 15, $500,000, college, Quebec.
Dec. 22, $100,000, factory, Oxford, N.S.
Dec. 23, $.300,000, plant, Berthierville, Que.
Dec. 24, $500,000, banking district, Halifax, N.S.
Dec. 24, $200,000, building, Toronto.
Dec. 27, $105,000, building, Montreal.
Deaths due to fires in 1920 were as follows: —
Month. 1913. 1914. 1915. 1916. 1917. 1918. 1919. 1920.
January 14 26 3 10 21 28 13 22
February 21 18 11 23 19 87 26 30
March 22 27 23 23 20 34 9 35
Month. 1913. 1914. 1915. 1916. 1917. 1918. 1919. 1920.
April 11 22 14 6 15 7 27 8
May 33 8 5 14 12 10 15 13
June 18 12 2 6 9 9 28 15
July 9 8 13 268 19 6 11 15
August 29 3 14 30 12 7 24 14
September .27 9 27 6 21 13 23 13
October 15 9 7 39 23 11 16 13
November .. 24 14 12 12 21 3 14 31
December 13 19 11 94 15 26 19 15
Totals
236 175 142 531 207 241 225 224
Hail Insurance Results Were Satisfactory
Premiums Greatly Exceeded Those of Previous Years — Loss Ratios Lower Than
Usual — Reduction in Rates is Possible — Municipal Insurance in Alberta Has Been
Fortunate, But in Saskatchewan Extra Assessment Was Necessary in 1919
By W. A. SMART, Calgary, Alberta
Manager, Hail Department, British Crown .Vssurance Corporation, Ltd.
PREMIUMS paid to companies by farmers in western Can- tion to be content with a moderate profit, and in view of the
ada for hail insurance in 1920 far exceed the total of any more recent experience in this province they are now consider-
previous season. Following is a synopsis of premium received ing a reduction of premium I'ates. Some of the older operators
and losses sustained for the season. Similar figures for a who have vivid memories of former experiences view withi
period of years in Saskatchewan and Alberta are also given:-- some trepidation the proposal to reduce rates. They argue
1920 Premium Losses Ratio % *^^^* ^^^ subnormal conditions of the past three years can
Saskatchewan $4,346,605 $1,860,644 43 ^^^^'^ ^^ ^^Pe^^^d to continue and that a disastrous season is
Alberta 2171954 745 567 30 alreacjy overdue. Nevertheless a large reduction of rates is
Manitoba '39l',781 113',000 28.80 probable.
Municipal Insurance in Alberta
Totals $6,910,340 $2,719,211 39.3
The municipal scheme of hail insurance in this province
Besides the above premium municipal taxes amounting to ,,33 ^een fortunate in having three successive seasons of small
a large sum were levied for hail insurance in Saskatchewan jogges, and its popularity has increased from year to year be-
and Alberta. cause of the favor of the elements. Keen observers of the
SASKATCHEWAN history of hail insurance, and particularly of the municipal
Year Premium Losses Ratio % schemes in the various provinces, are inclined to think that one
1909 $281,035 $180,213 64 season's experience such as that of 1916, or even a less disas-
1910 547 995 287,537 43 trous season, is all that is required to shatter the confidence of
1911 787 253 532 840 67 ^he farmer, temporarily at least, in the municipal scheme.
1912 1 051 125 757,640 72 ^*"" example, if hail had cause as much destruction this year
1913 7g3 194 485-305 61 *^ '* '^^^ '^ 'he season referred to the municipal commission
1914 747 g3g 173,443 23 would have required to assess a premium of probably 18 per
1915 1 3g3 001 438 619 32 cent, instead of 6 per cent. In the event of such an assess-
1916 1 417 853 1 872,408 132 ment being made the present supporters of the scheme might
1917 2 409 746 687,085 28 ^^ expected promptly to exercise their right to withdraw their
1913 2 116 330 772 767 36 '^"'^ from taxation under the municipal hail act for the next
1919 "III"" 2!277!819 1,784396 78 ensuing year.
1920 4,346.605 1,860,644 43 Something like this happened in Saskatchewan in 1919
when the municipal commission exercised a new provision of
Totals $18,129,794 $9,783,397 53.9 the act for the first time by levying an extra assessment to
meet the indemnities which had been awarded. It is esti-
ALBERTA mated that nearly 50 per cent, of the lands then liable to taxa-
•Year Premium Losses Ratio % tion for hail insurance were so withdra\vn. The weakness of
1913 $302,929 $214,079 70 any co-operative insurance scheme of this kind seems to lie in
1914 381^496 211,724 55 the fickleness of its supporters. They are loyal only so long
1915 1,119,816 855,643 76 *s the sailing is smooth and times are prosperous, but when
191g 1,237,349 1,029,981 83 the winds of adversity blow many are unable to bear the strain
1917 1^788,705 1,183,537 66 '^^^ ^re apt to forget the benefits enjoyed in the past.
1918 '991I085 'l89.225 19
1919 861,704 354,358 41 Company Insurance in Saskatchewan
1920 2,171,954 745,567 30 „ ^ .. ,1 , ^. u j j ■ c , . u
Company rates are not likely to be reduced in Saskatche-
™ . , eooccAoo ffjr:oiii^ ca wan for uext seasou, cxcept perhaps in 3 few Small aroas Where
LotalS So.oOO.Uoo S4,/o4,li4 04 , , . , . j t^ • ^ . , ,
extra charges were previously imposed. It is not considered
Rate Reduction Being Considered that the general experience in this province warrants a reduc-
For the last three years losses in Alberta have been un- tion.
accountably far below normal, or what insurers had grown to In Manitoba there will probably be a substantial re-
regard as normal. The companies operating show a disposi- duction based on the more recent experience there. Mani-
170
THE MONETARY TIMES
toba is to try out a plan of municipal insurance, too, I hear.
Preliminary steps for inauguration of it have already been
taken.
During the season lately closed farmers insured more
heavily than ever before, as the figures quoted show. Twenty
and twenty-five doUai's per acre were quite common insur-
ances, a considerable number going as high as $40.00. The
anticipated high prices of grain were responsible for the high
insurance no doubt, and the recent sharp decline of the same
has been a severe disappointment to many farmers. Com-
panies which operated on the premium note plan share sharply
in that disappointment. Whereas farmers may have placed
insurance last season in excess of the amount warranted, it is
probable that the experience after the close of the season with
regard to prices of grain will have a tendency to swing senti-
ment in the opposite direction, and it will not be surprising if
next season the amount of hail insurance written is less than
conditions and circumstances really warrant.
Soldiers' Insurance Act Produces Business
$3,282,000 Applied For Up to December 1— This was Only Piece of Insurance
Legislation at 1920 Session of Parliament— An Outline of the Terms of the
Act— Many Non-Pensioners Apply— All Branches of Service Are Eligible
A RETURNED Soldiers' Insurance Act was the only act
-^*- passed dealing with insurance at the 1920 session of the
Canadian Parliament. It was the result of frequent com-
plaints that disabled veterans were unable to secure protec-
tion in the ordinary way. The act is administered by the
Board of Pension Commissioners for Canada.
Up to December 1 there were 1,01.5 applications for insur-
ance under the act. The total value of the insurance repre-
sented in these applications is $3,282,000, and the premiuiTis
received up to November 27 totalled $26,711. In compliance
with the act. all the applications have been received since
September 1. During September only 160 applications were
received, all the others coming in October and November.
Majority Are Physically Fit
Among the applicants are included every rank from pri-
vate to major-general, although privates form the majority of
the policy-holders to date. With so many tuberculous soldiers
in sanitariums and others throughout Canada suffering from
one disability or another, it is a remarkable fact that so far
the majority of applicants have been men suffering from no
disability whatever. It is estimated that 60 per cent, of those
taking policies to date are first-class risks. This statement is
made on the ground that three-fifths of those taking insurance
have not suffered any illness since their discharge. Of the
1,175 in sanitariums suffering from tuberculosis very few have
taken advantage of this insurance.
Of the 87.5 policies issued up to November 15th, 393 were
to pensioners for $1,158,000 and 482 to non-pensioners for $1,-
722,000. The liability to pensioners is somewhat restricted
although they are fully protected. If a pensioner were to die
of any other cause than his disability resulting from the wa •
Tiis heirs would not get his pension, and in that case the full
amount of the insurance would go to them. If, however, a
pensioner does die of his disability, and the pension going to
his heirs is greater in capital value than the insurance, ths
heirs will receive under the act the total value of the premiums
paid with compound interest at 4 per cent. If there is a pen-
sion the total capital value of which, is less than that of the
insurance in force, the amount in excess will be paid.
Average Policy Is High
Policies are issued for a minimum of $500 and for multi-
ples thereof, not exceeding $5,000. That a large number are
taking full advantage of the insurance offered is evident when
it is stated that an average unit of the policies held would bo
$3,600. Practically all the officers and many privates take full
advantage of the opportunities offered by the act. The scale
of premiums is below that offered by the insurance companies
and slightly higher than that offered to civil servants. The
most popular forms of policies are the "all life" and the "twen-
ty-year pay life" policies.
Premiums are payable monthly, quarterly, half-yearly or
voarlv. As no advantage is given for the longer period pay-
ments, the great majority of the policy-holders have chosen
the monthly payment plan. No woman has yet taken advan-
tage of the plan, although the widow of a soldier who died
after his discharge or a widowed mother are entitled to avail
themselves of it. So far few soldiers who only served in
Canada have taken insurance under the act, the name of the
act, "The Returned Soldiers' Insurance Act," having probably
made them think mistakenly that they could not qualify. No
applications have been received from any Frenchman, Italirn
or American who was resident in Canada before the war and
who served in one of the allied armies, although such veter-
ans, too, are eligible. Nurses are eligible, and W.A.A.C.'s,
but V.A.D.'s, not having been subject to military discipline,
would not be eligible. Insurance men have co-operated in the
work, advising many men who could not qualify for their com-
panies of the federal plan.
Business by Provinces
Ontario has furnished the largest proportion of the policy-
holders. Up to two weeks ago the policy-holders were distrio-
uted among the provinces as follows: Prince Edward Island,
0; Nova Scotia, 20 risks for $61,000 insurance; New Bruns-
wick, 16 risks for $63,000; Quebec, 103 risks for $361,500; On-
tario, 429 risks for $1,375,500; Manitoba, 84 risks for $254,-
000; Alberta, 60 risks for $196,000; Saskatchewan, 68 risks for
$242,500; British Columbia, 94 I'isks for $321,500; and the
Yukon, one risk for $5,000. No claims have been paid as yer,.
Before the opening of parliament this year the govern-
ment will consider the adding of unemployment insurance to
the business it has already established in returned soldieis'
insurance, and in civil service insurance. As considerable un
employment is expected through the winter, the minister o"
labor may urge that unemployment insurance, operated as
complementary to the federal system of labor bureaus, would
be practical politics.
In Force for Two Years
A statement issued by the board outlines some of the fea-
tures of the act as follows:
"All returned soldiers and their families will be interested
in the Returned Soldiers' Insurance Act, under which they are
provided with an opportunity of obtaining life insurance at
most favorable rates. The act became effective on Septem-
ber 1st, 1920, and will remain in force for two years.
"Under the provisions of the act any honorably discharged
soldier, sailor, or nurse, of the Canadian forces, domiciled and
resident in Canada, may insure with the government to an
amount of from $500 to $5,000. Under certain conditions the
widow of a returned soldier who died subsequent to discharije
may also obtain insurance.
"In addition to former members of the C.E.F., the privi-
leges of the act ai-e available to anyone, male or female, wh:)
served during the late war in the Imperial Army or with the
forces of any of the allied or associated powers, providing they
January 7, 1921
THE MONETARY TIMES
171
were domiciled and resident in Canada before the war and
hold an honorable discharge.
"Many of those who served overseas, while not sufferi.ia:
from a severe disability, find that their physical condition is
such that they are unable to obtain life insurance at all or only
at much higher rates than are normally demanded. They,
therefore, find themselves severely handicapped in providing
protection for their dependents. Under the Returned Soldiers'
Insurance Act all returned men are placed on an equal basis
as no medical examination is requii-ed.
Premium Rates
"The premium rates are low. They vary with the age of
of the insured and the plan of insurance chosen. At the age
of 25 a straight life policy for $1,000 costs $1.24 per montn.
At the age of 35 the rate is $1.70 per month. Beneficiaries
are limited in the case of a married man to his wife and chil-
dren. An unmarried man or a widower without children is
required to name his future wife and childi-en as beneficiaries.
Should the insured die unmarried the insurance money may be
paid to one or more of his immediate relatives according to his
will.
"An exceptional advantage of this insurance is the provi-
sion made for a disability benefit. Under this section, should
the policy-holder become totally and permanently disabled, he
is relieved from paying further premiums and the insurance
money is paid to him direct in annual instalments equal to
one-twentieth of the total amount of the policy.
"Booklets explaining the act and application forms may be
obtained from all branches of the Great War Veterans' Asso-
ciation, the Soldiers' Aid Commission, Imperial Veterans of
Canada, Grand Army of United Veterans, Army and Navj-
Veterans, Department of Soldiers' Civil Ro-establishmen:,
military district headquartei-s and district oflices of the Board
of Pension Commissioners, or direct from the Commissioners,
Returned Soldiers' Insurance, Transportation Building, Ot-
tawa."
Text of the Act
Some of the provisions of the act are as follows: —
"3. (1) The minister may enter into an insurance con-
tract with any returned soldier domiciled and resident in Can-
ada or with any widow so dimiciled and resident, providing for
the payment of five hundred dollars or any multiple thereof,
not, however, exceeding five thousand dollars in the event of
the death of the insured.
"(2) The said payment shall, as to an amount not exceed-
ing one-fifth thereof, be made on the death of the insured and
the remainder, or the portion thereof to which any beneficiary
is entitled, shall at the option of the insured be payable as a
life annuity or as an annuity certain for five, ten, fifteen or
twenty years, or as an annuity guaranteed for five, ten, fif-
teen or twenty years, and payable thereafter as long as the
beneficiary may live.
"(3) Any option as to the mode of payment, cho.sen by the
insured in his application for insurance, may be subsequently
varied by declaration of the insured endorsed upon or attached
to the policy.
"(4) The said option as to made of payment chosen by
the insured may after the death of the insured be varied by the
beneficiary, with the consent of the minister.
"(5) The contract may also provide that if the insured
becomes totally and permanently disabled and rendered incapa-
ble of pursuing continuously any substantial gainful occupa-
tion, and if such disability is not deemed to be attributable to
his service so as to bring him under the provisions of The
Pension Act, the premiums thereafter falling due under the
contract shall be waived and the insured shall be entitled to
receive as a disability benefit an annual payment not exceed-
ing one-twentieth of the sum insured, the said benefit to con-
tinue during the lifetime of the insured but not to exceed
twenty such payments in all; and that if the insured dies be-
fore the twentieth such payment has been made the balance of
the sum assured shall be payable as a death benefit, in ac-
cordance with the provisions of this section.
(Continued on page 172)
THE MERCHANTS BANK OF CANADA
QUARTERLY DIVIDEND
A Dividend of Three Per Cent, for the Current Quarter,
being at the rate of Twelve Per Cent, per annum, upon the
Paid Up Capital Stock of the Bank, was declared payable on
1st February next to Shareholders of record on the evening
of 15th January, stock not fully paid up on 1st November to
participate from that date on the amounts then paid up and
on subsequent payments from the dates thereof.
By Order of the Board.
D. C. MACAROW,
General Manager.
Montreal, 28th December, 1920. ' 346
DOMINION TEXTILE COMPANY, LIMITED
NOTICE OF DIVIDEND
A dividend of one and three-quarter per cent. (1%%)
on the Preferred Stock of the Dominion Textile Company,
Limited, has been declared for the quarter ending 31st De-
cember, 1920, payable January 15th, 1921, to shareholders of
record December 31st, 1920.
By Order of the Board.
JAS. H. WEBB,
Secretary-Treasurer.
Montreal, 6th December, 1920. 342
NOVA SCOTIA STEEL AND COAL COMPANY, LTD.
DIVIDEND NOTICE
A dividend of two per cent. (2%) on the Preferred Stock
and one and one-quarter per cent. (l'/4%) on the Ordinary
Stock of the Company has been declared, payable on the
15th January, 1921, to shareholders of record at the close of
business on December 31st, 1920.
By Order of the Board.
THOMAS GREEN,
Cashier.
New Glasgow, Nova Scotia, December 20, 1920. 345
THE BANK OF TORONTO
ANNUAL MEETING
The Annual General Meeting of Shareholders of this
Bank will be held at the Banking House of the Institution,
corner of King and Bay Streets, Toronto, on Wednesday, the
twelfth day of January next, the chair to be taken at noon.
THOS. F. HOW,
General Manager.
The Bank of Toronto,
Toronto, November 20th, 1920. 323
MARCUS LOEWS THEATRES, LIMITED
The Directors have declared a Dividend of one and three-
quarter per cent, on the prefei'ence stock for the quarter
ending the 31st December, 1920, payable on the 15th day of
January, 1921, to shareholders of record on the 31st day of
December, 1920.
Bv Order of the Board.
SAMUEL D. FOWLER,
Secretarj-.
Toronto, 31st December, 1920.
THE MONETARY TIMES
Volume 66
SOLDIERS' INSURANCE ACT PRODUCES BUSINESS
(Continued from page 171)
"A. The said payments shall be made to the wife, hus-
band, child, grandchild, parent, brother or sister of the insurod
or such other person as may by regulation as hereinafter pro-
vided be declared to be entitled to become a beneficiary under
the contract.
"5. If the insured is a married man, or a widower with a
child or children, the contract shall be for the benefit of his
wife, or of his children, or of some one or more of his chil-
dren, or of his wife and some one or more of his children; and
when the contract is effected for the benefit of more than one,
the insured may apportion the insurance money among them
as he deems fit.
"6. If the insured is an unmarried man or a widower
without children, the insurance contract shall be for the bene-
fit of his future wife, or of his future wife and children, and
the insured may apportion the insurance money among them,
as he deems fit; but if at his death he is still unmarried or is
a widower without children the insurance money shall, subject
to sections four and eleven of this act, fall into and become
part of the estate of the insured.
"7. (1) If the insured is a female and the contract is ef-
fected for the benefit of more than one beneficiary the insured
may apportion the insurance money among them as she deems
fit.
"(2) If the insured is a widow the contract shall be for
the benefit of such person or persons within the classes men-
tioned in section four hereof as may be shown to the satis-
faction of the minister to be to a substantial extent dependent
upon the widow for support.
"8. Any apportionment under the next three preceding
sections may be made in the insurance contract, or by a dec-
laration endorsed thereon or annexed thereto and signed by tbe
insured.
If Beneficiary Dies
"9. (1) Where an apportionment has been made as pro-
vided in sections five and six of this act, and one or more of
the persons in whose favor the apportionment has been made
die in the life-time of the insured, the insured may, by an
instrument in WTiting endorsed on or attached to the insurance
contract, declare that the shares formerly apportioned to the
persons so dying shall be for the benefit of the wife and chil-
dren of the insured, or for one or more of them as he sees fit.
"(2) In default of such declaration the shares of the per-
sons so dying shall be for the benefit of the sui-vivor or sur-
vivors of the persons in whose favor the apportionment was ,:o
made, in equal shares if more than one.
"(3) If all the persons so entitled die in the life-time of
the insured, the insured may by an instrument in ^VTiting en-
dorsed on or attached to the insurance contract declare that
the insurance money shall be for the benefit of his wife, if
living, or of his surviving children, if any, or some one or
more of them, or of his wife and children, or of his wife and
some one or more of his children, in such proportions as he
sees fit, and in default of such declaration, the insurance shall
be for the benefit of his wife, if living, and of his children, if
any, in equal shares.
"(4) If the insured survives his wife and all his cliildi'en
the insurance money shall, subject to section four of this act,
fall into and become part of the estate of the insured.
"(5) A duplicate of every declaration made in pursuance
of this and the next preceding section shall be filed with the
minister at the time such declaration is made.
Relation to Pensions
"10. If on the death of the insured a pension becomes
payable under The Pension Act to any person or persons
within the classes mentioned in section four of this act, there
shall be deducted from the benefit payable under this act the
aggregate present value of the pension or pensions so payable
computed on such bases as may be prescribed by regulation
made under the provisions of section seventeen of this act,
and in such case there shall be returned to the beneficiary or
beneficiaries in proportion to their respective interests under
the contract the proportion of the premiums paid (with inter-
est at four per cent, per annum, compounded annually), which
the amount of the said deduction is of the total amount as-
sured under the contract.
"11. (1) If the insured survives all the persons to whom
the death benefit may be paid under the provisions of section
four of this act, or if all the said persons die before the pay-
ment of the instalments of the death benefit have been com-
pleted, the estate of the insured shall be entitled to receive
.only the amount by which the reserve under the contract at
the time of the death of the insured, exceeds the sum of the
payments so made.
"(2) In this section the word 'reserve' means the net pre-
mium value of the contract on the basis of the British Offices
Life Tables, 1893, Om (5), vnth interest at the rate of four per
cent, per annum.
"12. When no apportionment is made of the insurance
money as hereinbefore provided, all persons interested as bene-
ficiaries under this Act shall be held to and shall share equally
therein.
"13. The minister may refuse to enter into an insurance
contract in any case w>iere there are in his opinion sufficient
grounds for his refusing.
Premiums
"14. (1) The insurance contract may provide for the pay-
ment of a single premium, or of premiums uniform throughout
the life-time of the insured, or during the life-time of the en-
sured for a period of ten, fifteen or twenty years, or until he
attains the age of sixty-five years;
"(2) The premiums payable under the various plans of
contract shall be those shown in the schedule to this act.
"15. No medical examination or other evidence of insur-
ability shall be required in respect of any contract issued un-
der this act: Provided, however, that the minister may, for
the purpose of determining whether he shall refuse to enter
into a contract of insurance in any case under the provisions
of section thirteen of this act, require such medical examina-
tion or other evidence of insurability of the insured as he may
deem necessary.
"16. The insurance money payable under the contract
shall be unassignable and shall not be subject to the claims of
creditors of the insured or of the beneficiary.
"18. The moneys received under the provisions of this
act shall form part of the consolidated revenue fuVid, and the
moneys payable under the said provisions shall be payable out
of the said consolidated revenue fund.
Administration
"19. (1) The provisions of this act may be administered
in such department or departments of the Government as the
Governor-in-Council may from time to time determine.
"(2) The superintendent of insurance or such other officer
as may be appointed for that purpose by the Govemor-Jn-
Council shall, within three months after the close of each fis-
cal year, prepare for the minister a statement showing the
amount received for premiums during the last fiscal year for
all insurance contract entered into previous to the said date,
the amount' of all sums paid in connection therewith during
the said period, also the number of new contracts entered
into) since the previous statement and the gross amount
thereof, with such further details and particulars as the
minister deems advisable.
"(3) The minister shall lay the said statement before
parliament within fifteen days after the statement has been
submitted to him if parliament is then sitting, and. if not, then
within fifteen days of the opening of the session of parlia-
ment held next thereafter.
"20. No application for insurance shall be received under
this act after the first day of September, nineteen hundred
and twenty-two.
"21. This act shall come into force on the first day of
September, one thousand nine hundred and twenty."
January 7, 1921
THE MONETARY TIMES
Growth and Possibilities of Aviation Insurance
A Development of the Past Two Years— Flying for Commercial Purposes
May be Expected Soon— Three Companies Now Prepared to Write Business
in Canada— Coverages, Terms and Rates— Some Results in the United States
By HEDLEY C. WRIGHT
Assistant Manager for Canada, London Guarantee and Accident Co., Ltd.
THE business of Aviation Insurance did not take definite
form until the spring of 1919, and our study of it will
be interesting, not so much because of what it has been or
of what it is, but rather because of what it is likely to be-
come.
It was only in 1909 that Bleriot made the first flight
across the English Channel and only a few months back the
first trans-Atlantic flight was made.
Between the time of the first channel flight and the out-
break of war, flying scarcely went beyond the experimental
stages. Then on the outbreak of war it received an un-
paralleled impetus. Neither men gr money were spared in
its development; but it was all for war purposes. Since the
armistice much attention has been given to the question of
civil flying, which to-day is still but an infant in swaddling
clothes. In the few moments at our disposal we will attempt
to take a look into the future and see what justification there
is for hoping that in the fullness of time the infant will
grow into sturdy manhood.
Good Field in Canada
The commercial growth and prosperity of a country
necessarily depend upon the means of transportation at that
country's disposal. It is stated by those closely in touch with
aeronautics that aviation can be wisely developed so that it
becomes an eflScient means of transportation. And the pos-
sibilities of commercial aviation seem to be more bright in
Can&da than in many other countries, such as for example
in the British Isles, where up to the present more has been
done than here to develop the business. There the short
distances, the completeness of railway transportation and
prevalence of fog tend to limit air transport; but in Canada
conditions are diflFerent. The big distances between our com-
merical centres, the vast areas still to be surveyed and de-
veloped, the clear atmosphere and the broad inland water-
ways, lending themselves admirably to the use of flying
boats, all invite the peaceful conquest of the air.
Up to the present, commercial aviation has not taken
really profitable or tangible shape anywhere, and possibly it
is less developed in Canada than in most of the other coun-
tries where it has been receiving attention. Amongst the
aerial activities on this continent to date may be mentioned:
1. The carrying of passengers for joy rides. It is rea-
sonable to assume that the next development will be the
carr>nng of business men as a time saver, as is being done
by regular aerial passenger lines in Europe.
2. Photographic and survey work.
3. Mail carrying.
4. Carrying small cargoes of goods.
Conclusions of Air Conference
Governments are recognizing the need for encouraging
flying, and only the other week Mr. Winston Churchill, the
Imperial Secretary for War. announced at the Air Confer-
ence in London that the Imperial Government intended to
help civil aviation by every means in their power. It is
interesting to know in passing that the Air Conference in
question came to two important conclusions. The first was
that the state which first makes aviation pay commercially
*An address before the Insurance Institute of Toronto.
will win in the next war. And here it may be noted that
Marshall Foch is reported to have stated that the next war
will begin with a great battle in the air, and the side which
wins that battle and gains control of the air will have a
lasting advantage over the other side. It is further believed
that in war time what the mercantile marine is to the navy,
civil air fleets will be to the Royal Air Force.
The second conclusion of the Air Conference was that
commercial aviation in Great Britain, where the matter has
been receiving considerable attention, is at present far from
being a paying business. This being the case, we in Canada
must not expect too great results too soon.
The convention dealing with international air navigation
matters will shortly come into being among all the allied
states. The text of this convention was adopted by the
Supreme Council of the Peace Conference in September, 1919,
and defines the law on nationality marks, certificates of
navigation, licenses for air pilots, aerial signalling, etc. The
problem of custom duties has been based on the principle
of the sovereign rights of all states to the atmosphere over
their respective territories.
Air Board in Canada
The Canadian government is alive to the situation and
has created an Air Board, whose functions are to super-
vise all matters connected with aeronautics. The Air Regula-
tions, 1920, issued by the board provide amongst other things
for: —
1. The examination and licensing of all pilots.
2. The inspection, licensing and regulating of all air-
craft, aerodromes and air stations.
;i. The prescribing of aerial routes.
4. The undertaking of such tt^-hnical research as may
be required to develop aeronautics.
5. The control and management of all aircraft and
equipment necessary for the conduct of any of His Majesty's
services.
Insurance Will be Required
Now as regards the insurance of aircraft. I need not
remind this gathering that the credit system of a country
depends upon insurance. And insurance on aircraft is na-
turally essential to the success of commercial aviation; for,
without insurance facilities, men will not risk their capital,
pilots will not risk their limbs, passengers will not risk their
lives, and merchants will not risk their goods in schemes
of air transportation.
As far as I know there are at the present time two
American companies and one British company prepared to
write fire casualty aviation insurance in Canada-, and we will
now briefly examine the coverings obtainable and the ap-
proximate premiums charged.
1. Public Liability. — Taking care of all claims in excess
of the first $50 against owners of aircraft for accidental
bodily injury caused by the aircraft to any person other than
an employee of the assured or passengers. Limits of 5 and
10. Premium $100.
2. Property Damage. — Providing for all claims in ex-
cess of the first $50 for destruction of or damage to property
not owned or controlled by the assured or conveyed by the
aircraft of the assured. Rate 5 per cent.
3. Collision Insurance. — Covering damages to the air-
craft and necessary accessories whilst in or on the same, as
174
THE MONETARY TIMES
Volume 66
the direct result of accidental collision or impact with any
object while the aircraft is in the air or on land or water
under its own power. The first 20 per cent, of any loss or
damage to the aircraft and also loss or damage to propeller
and under-carriage are excluded. Rate 12 '/2 per cent.
4. Fire Insui-ance. — Covering- loss or damage in excess
of the first 10 per cent, caused (1) by fire, explosion, self
ignition or lightning to the aircraft of the assured or to
accessories whilst in or on the aircraft; (2) while being
transported in any conveyance by land or water. Rate 4
per cent.
It may be of interest, while on the subject of fire hazard,
to mention that following a crash a number of fires have
been caused through heated parts of the engine coming into
contact with gasoline vapour. At the present time an aero-
plane on the ground is a much more hazaixlous fire risk than
an automobile, because in the ca-se of an aeroplane there is
very little chance of putting a fire out when it really has a
start, particularly if the tanks are full. This means that
the salvage is negligible.
5. Theft Insurance. — Covering the assured against
loss or damage in excess of the first 10 per cent, to the air-
craft by burglary, theft, robbery or pilferage by any person
or persons other than employees of the assured. Rate 1 per
cent.
The purpose of the various deductions is, of course, to
impress upon the assured the fact that he is a co-insurer
and to encourage him to exercise care.
For Six-Months' Term
The term of the policy is for six months covering the
principal flying period in Canada up to the present. It is
considered wise in any event to limit the term of the policy
to six months. Aeroplanes are subject to considerable and
rapid deterioration, and it is wise to have an opportunity of
inspecting them before renewing the insurance.
Cai-go insurance may also be obtained at an average
rate of one quarter of one per cent.
Personal accident insurance on pilots and passengers is
also purchasable either by means of a coupon policy cover-
ing from sunrise i.o sunset or by a policy for a longer term.
The coupon rates for $5,000 for accidental death and $25
per week for 26 weeks for total disability and $12.50 per
week for partial disability for 26 weeks are $10 for a pilot
and $5 for a passenger. A policy on a pilot on an annual
basis is purchasable at the rate of approximately 10 per
cent, on the amount of the principal sum insured.
The commission payable on all classes of aviation in-
surance is 10 per cent.
Attitude of Life Companies
As regards life insurance, the life companies in Canada
have, I understand, discussed the situation from time to
time, but they find difficulty, owing to the experimental na-
ture of the business and the lack of adequate statistics, in
arriving at a premium charge for life policies for aviators,
and up to the present time the business is not being sought
by the life companies.
The rule of one of the large life companies is: —
"No amateurs or aviators engaged in fancy or exhibi-
tion performances will be accepted. Experienced aviators
engaged in commercial or patrol work as pilots, or persons
engaged in similar work as pa-ssengers, will be accepted for
a maximum amount of $2,000 on any plan, except term in-
surance, subject to a minimum extra premium of $50 per
$1,000. The extra will vary, according to the degree of
hazard involved."
It would be helpful to the development of commercial
aviation if the life companies could see their way clear to
institute a class for aviators and pending the experimental
stages of the business arrange a pool or in some other way
work out a scheme which will enable them to encourage the
development of aviation at not too great a cost to themselves.
In underwriting aviation business, it is already re-
cognized that many things must be taken into consideration,
and undoubtedly there are many more which will be learned
only by experience as the business develops. Here are some
of the things to be taken into consideration: —
1. Record of the firm who owns the machines — from
knowledge of the company's record and personnel can be
judged the spirit of its organization and whether the ground
engineers are capable and careful at their work. Careless-
ness with aeroplanes spells disaster.
2. Types of machine and engine. — The reliability of
the machine or engine can be judged from it past records,
or in the case of a new type from the previous work of the
designer.
3. Record and standing of pilots. — A great percentage
of the risk depends upon the pilot. He has control of the
aeroplane, and no matter how good the machine may be, it
can come to grief easily under the guidance of a bad pilot.
4. Nature of flying being carried out. — This needs no
explanation. Obviously a higher rate must be charged for a
machine flying from Toronto to Calgary than for one flying
from Toronto to Hamilton. Again, a machine engaged in
photographic or survey work and flying away from a re-
cognized air route is a far more serious hazard than that of
a machine travelling on a regular air route and simply
carrying passengers.
It is customary to exclude covering an aircraft while it
is flying between one hour after sunset and one hour before
sunrise of any day.
The rating of cargo is aff'eeted by methods used in pack-
ing, whether it is easily damageable, the effect upon it
through exposure to atmospheric conditions, and so on.
Past Experience
As already stated, it is difficult to secure statistics at
this time. It may, however, be of interest to give a few
figures which have been published on American and British
civil aviation experience. The American experience for the
year ending May, 1919, and derived from reports of the
Washington, Philadelphia and New York postal service, sup-
plies the following particulars: —
Number of flights projected 1,263
Number of flights accomplished 1,208
Total mileage flown 128,255
Number of parcels carried 193,021
Total expenses in dollars 137,900
Forced descents, due to Miiotor 37
Forced descents, due to weather 53
Deaths 2
Accidents to persons • 6
Total loss of machine 2
Other losses 3
It is of interest to compare the experience of British
civil aviation, as given out by the British Air Ministi-y, cov-
ering a period of six months: October, 1919, to March, 1920: —
Number of flights 21,000
Hours of flight 4,000
Passengers carried 52,000
Total mileage flown 303,000
Accidents 13
Deaths 2
Pilots killed 2
Pilots njured 6
Passengers injured 10
Passengers killed 1 in 10,000
The results of the "Paris-London" express route over a
period of fourteen weeks were as follows: —
Flights projected 213
Flights accomplished 177
Flights abandoned 19
Flights internapted 12
Total miles flown 48,090
Average speed per hour 104
January 7, 1921
THE MONETARY TIMES
175
The Prudential
is an
American Company
Doing Business
with Canadians
Through
Canadians
Branch
Offices
in all
Leading
Canadian
Cities
l^RENGTHOF ?f V
f; (GIBRALTAR Ufr
^^^0^^.
THE PRUDENTIAL
Opened its First Canadian Office in 1909.
Payments to Canadian policyholders to date, plus commissions
and salaries to Canadian representatives, rentals and miscellaneous
expenses of Canadian offices and investments in Canadian" bonds,
EXCEED MATERIALLY
the total premiums received from Canadian policyholders.
This is sound evidence that this Company has done
and is doing much to benefit Canada and its citizens
The Prudential Insurance Company
FORREST F. DRYDEN, President
of America
HOME OFFICE: NEWARK, N.J.
INCORPORATED UNDER THE L.AWS OF THE ST.ATE OF NEW JERSEY
Founded by John F. Dryden, Pioneer of Industrial Insurance in America
THE MONETARY TIMES
The Handley-Pajre Sei-vice, operating between London
and Paris and London and Brussels, in November, 1919, car-
ried 154 passengers and 19,900 pounds weight of parcels.
It is probable that more authentic and extensive statis-
tics will in due course be obtainable from the Canadian Air
Board.
Air Tossibilities Deserve Attention
On the whole, I am persuaded that the aviation situation
in Canada gives us cause for sane optimism rather than
pessimism. Given reasonable support from the government,
the public and the insurance companies, it should be a means
of assisting materially in the development of the Dominion
during the next twenty-five years. In some respects, perhaps,
other countries are giving the matter more energetic atten-
tion than ourselves. It may not be out of place here to call
attention to the size of the Zeppelin, L. 71, which was re-
cently surrendered by Germany to Great Britain. It is 745
feet long and has a maximum speed of 75 miles per hour,
and is equipped with engines of 2,100 horse-power. When
flying at 45 miles per hour it is capable of remaining aloft
for as long as a week and of traversing a distance of 8,000
miles. In the light of this, who can tell where the next pro-
gressive step will lead, or measure the magnitude of the
future of aviation?
Finally, I am confident that no Canadian will neglect any
opportunity to make Canada greater, commerically, by means
of aviation, and that no Britisher will fail to do his share
in making the Empire invincible in the air, as on the sea,
in all righteous causes.
Uniform Conditions in Fire Insurance
Some Comments on the Bill Drafted by Bar Association— All Canada Insurance Federa-
tion Proposed Entire Policy Should Be Uniform — Conditions Primarily Affect Insured
By T. L. MORRISEY
President, All Canada Fire Insurance Federation, Manager for Canada, Union Assurance Society, Montreal
1'^HIS act, as you know, has been under consideration by
A the Canadian Bar Association for the past three or four
years and the provisionally approved act now before you is
the result of the combined wisdom of that body. Is it a^ny
wonder, therefore, that I approach the subject, or offer any-
thing in the way of criticism with fear and trepidation.
I intend to hedge, however, and claim "the whole without
prejudice."
Before discussing the merits — it is hard to get away
from the legal terminology — I would like to acknowledge on
behalf of those engaged in the fire insurance trade — vide privy
council decisions — the debt of gr&titude they are under to
the Bar Association for the good work it has done in ad-
vancing the movement for uniform policy conditions through-
out Canada to its present stage.
Concern of Premium Payers
I should also like to take adva^ntage of this opportunity
of directing attention to a popular delusion that this is a
question between the insuring public and insurance com-
panies. Nothing could be further from the truth. It is ad-
mitted it would be a convenience to insurance companies to
have uniform conditions, but what these conditions may be
interests insurance companies lea-st of all. They can adapt
themselves to any conditions. Those really interested are
the people who pay premiums to insui-ance companies and
the question resolves itself into one between the premium
payers who have fires and the still greater number of pre-
mium payers who don't, and as between the two the latter
are far more entitled to consideration either M, the hands
of our legislators or before the courts.
The insurance company is simply the medium through
which the two classes of premium payers carry on their
operations; and that fact once admitted, it must be recog-
nized that anything unduly favoring the class who have fires
can only be at the expense of the class who do not have fires.
Much has been said and written of late regarding the fearful
fire waste of the country. Is it not time that a practical step
be taken towards curbing that fire waste? Discourage the fire
waster and encourage the property conserver and you have
taken such a step.
Policies Might be Uniform
Let us now get down to the consideration of the question
before the meeting. The All Canada Fire Insurance Federa-
tion, which body I speak for, was extended the courtesy of
reviewing the draft act and given the opportunity of offering
criticism and suggestion. Our first suggestion was that it
would be adva^ntageous to have not merely the conditions but
the whole policy form standardized as they have in the State
of New York; the advantage of this is that every insurer
would define in identical language the risk assumed. What
the objection is has not been disclosed, but the suggestion has
not been adopted.
Criticism is offered most respectfully on the following
items :—
Section 2, Subsection 4, Interpretation. — We suggest
amplification and that the subsection read: "Property in-
cludes use and occupancy, rents, charges and profits, where
these form the subject matter of insurance."
Section 4, Contents of Policy. — The policy is a con-
tract between the parties — the assured and the insurer — and
it must of necessity contain the names of the parties. The
section also provides that the name of the person to whom
payable shall appear. If, as in the majority of cases, the
money is payable to the assured, as already stated his name
cannot help but appear; if to a third party, it is hardly con-
ceivable how the loss could be made payable to any such
party without expressing his name.
As to the additional requirements of the section, the sub-
ject matter of the insurance, the indemnity for which the
company may become liable, the event on the happening of
which such liability accrues, —
What better argument could be adduced in favor of a
standard form ?
Exception Suggested
Another suggestion of ours which evidently did not find
favor with the commissioners was that the exceptions in-
clude:—
Loss by theft.
Where assured has not used every effort to save
Where a building or material part thereof has
, *An address before the provincial insurance superinten-
dents' conference, Winnipeg.
(1)
(2)
property.
(3)
fallen.
The argument is: —
(1) Loss by theft is not loss by fire. Where such loss
is not excepted it leaves the door open to fraud.
(2) Where the property is under the control of one
party to the contract it should be incumbent on that party
to do his best to prevent its destruction.
January 7, 1921
T H E M O N E T A R Y T I M E S 1'?'^
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i
The Ever Progressive Mutual
To meet changing conditions, life insurance
experts have continued to evolve more liberal
policies until to-day it would seem as if every
possible benefit had been included.
The development of life insurance has been
rapid, not only in the number of policies issued
but also in the more liberal conditions incorpo-
rated in the contracts, and the Mutual Life of
Canada has either initiated or adopted every
improvement consistent with safety that has
been made in the modern life insurance
policy.
Mutual policies 'are payable immcJiatcly
upon receipt of proofs^of death.
Mutual policies'are indisputable after two
years from date of issue.
Mutual policies impose no restriction on
account of residence, travel or occupation
(excepting military or aeronautic service).
Mutual policies give the assured one
month in which to make payment of the
premium.
Mutual policies provide for liberal cash
surrender values, or in place of cash the
company will issue paid-up insurance or
term insurance equivalent in value to the
cash surrender value.
Mutual policies can be secured payable
by monthly instalments throughout the
life-time of the beneficiary, and if the
policy is on the endowment plan the pay-
ments continue until the death of the
survivor, whether assured or beneficiary.
Mutual policies can be secured which provide that the
premiums shall be waived in the event of total and per-
manent disability overtaking the assured before reaching
the age of sixty. Not only so but the company will begin
to pay to the assured a monthly income, which will not be
deducted from the value of these contracts at maturity.
Write for particulars of Mutual Life contracts.
THE MUTUAL LIFE ASSURANCE CO.
OF CANADA
Waterloo - - - Ontario
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178
THE MONETARY TIMES
Volume 66
(3) Where a building or material part has fallen the
character of the risk has changed and its value may have
disappeared.
Section 7, Coinsurance
This condition provides that where a policy contains a
coinsurance clause, it shall have stamped on its face, "This
policy contains a coinsurance clause," but it goes on to say
the clause shall be deemed an addition and as such subject
to the provisions of section 6 — i.e., left to the Courts to say
whether it is just and reasonable. The reason is not ap-
parent. Coinsurance is simple in its application. If it is ever
just and reasonable, it is always just and reasonable. My
own personal view is that the practice of insuring property
without the clause is unjust and unreasonable. There is no
more reason for expecting a company to sell indemnity with-
out providing for coinsurance than there would be to expect
the drygoods man to use a 36-in. yard stick when selling to
one customer and a 40-in. yard stick when selling to another,
or the grocer to sell to one customer at 16 oz. to the pound
and 20 oz. to another.
Another telling illustration that has been used is: The
issue of policies free from coinsurance is equivalent to fixing
the rate of taxation and allowing the property owner to do
his own assessing. To preserve the equities between the
parties all policies should be subject to coinsurance and the
rate graded according to the percentage of insurance to
value agreed upon.
Our suggestion is that the objectionable words be struck
out, making the wording to conform to the present Ontario
statute and that the section be transposed to follow section 4.
Statutory Conditions Property Not Insured
The original draft specified what was not insured under
the final draft the words "unless otherwise stated in the
policy" appear. This is very objectionable. Under the
blanket form of policy now so commonly used, where the
risk is described in such general terms, it might become
necessary to specially except "money books of account, etc.,"
and even then it might necessitate the exception being intro-
duced as a "variation." It would give rise to a lot of trouble
and the words had better be struck out. If this provision be
deemed necessary then we would suggest that the words
"unless otherwise specifically stated in the policy" be sub-
stituted.
Four Risks Not Covered
Our recommendation was to interpolate the words "di-
rectly or indirectly," and add the word "Earthquake." The
intention evidently is to except losses from the specified
causes and it would certainly seem desirable to place the
meaning beyond doubt. Riot and civil commotion insurance
is becoming very common and whatever would tend to make
clear where the liability under one form begins and the other
ends would be welcomed.
Earthquake is a catastrophe not contemplated in the
ordinary fire hazard. Cover can very readily be obtained for
all the excepted hazards at very low rates of premium.
We would again urge that this section read: "Loss or
damage caused directly or indirectly by invasion, insurrec-
tion, riot, civil war or commotion, or military or usurped
power, or by order of any civil authority; or by theft; or by
earthquake; or by neglect of the assured to use all reason-
able means to save and presei^ve the property at and after a
fire or when the property is endangered by fire in neighbor-
ing premises." Subsection (C), strike out the words "and
consent."
(4) 8 Use of Red Ink. — Amend by interpolating
after the word "printing" the words "on the face of" and
the word "except" the words "the number."
(5) 1 Misrepresentatio'ns. — This is limited to misre-
presentations made when "applying for insurance." It is
equally important that misrepresentations made during the
currency of the policy should void the policy. The present
Ontario condition meets this objection and it should be
adopted in its entirety.
(6) 5 (b) The words "heating or cooking" might fairly
be added after the words "refined oil for lighting."
5 (c) Change of Title. — The original draft included "or
in the case of chattels is mortgaged," but these words are
omitted in final draft — a i-etrograde step. Such a fact is
essentially "a fact material to the risk" and as such should
be communicated to the insurer.
(7) 5 (D) Add the words "or being a manufacturing
establishment ceases to be operated for a period of thirty
days."
7. Material Change. — Substitute the conjunction "or"
for "and," making it obligatory upon the assured to com-
municate any change material to the risk within his "control
or knowledge."
9. Mortgagees and other Creditors. — The original draft
required notice of assignment and consent of insurer, other-
wise policy void; the final draft omits this formality and
implies the right of an assured to assign his interest in the
policy. This is a very radical departure from a settled prac-
tice which has always been looked upon as vital to the con-
tract of insurance. We cannot too strongly urge the rein-
statement of the original condition.
9. (b) It would seem sufficient to provide that the
policy cannot be cancelled or altered without notice to mort-
gagee. It is difficult to foresee how far-reaching the words
"or otherwise dealt with" might be, and it is therefore sug-
gested they be struck out.
10. Termination of Insurance. — The words "at any time
before loss" should be struck out. This limits the rights of
insurer to cancel before loss. It frequently happens that the
occurrence of a loss is the warning signal and the right of the
insurer to cancel at any time before or after a loss should
not be abridged in any way.
11. Salvage. — The original draft required assured to
make an inventory, omitted from final draft. Surely that is
not an unreasonable requirement. How can the assured
prove his loss without going through some such process. The
obligation to prove the loss is on the assured, not the insurer.
The duty of preparing an inventory ■ should be specifically
laid upon the assured.
15. Requirements After Loss. — This condition is more
remarkable for what it does not conta-in than for what it
contains. The assured is not even required to state his in-
terest in the property destroyed. When the property is
destroyed the insurer practically occupies the position of a
purchaser and is entitled to full information as to the title
of the property for which he is called upon to pay.
17. Appraisement — Subsection (E) — This subsection
which is entirely new seems to invite complications. The
general practice is for the companies to act together in the
adjustment of the loss, usually as » matter of self-interest,
but just how this can be enforced is not quite apparent.
Suppose one company stands out, should the appraisement
be held up? How is an unlicensed company to be reached?
Then for the lawyers to impose upon a poor unfortunate
carpenter and builder the determination of the amounts to
be paid under non-concurrent policies is surely going the
limit. Why, some of the questions arising in such instances
would puzzle their brethren from Philadelphia. The appor-
tionment of costs as between the companies might safely be
left to the companies to fight out amongst themselves. This
subsection serves no useful purpose and might safely be
omitted.
MUTUAL LIFE'S PROGRESS
The Mutual Life of Canada reports the following assur-
ance secured during the first six months of the year: —
Month. 1919. 1920.
February $2,914,500 $4,511,609
March 3,060,787 6,023.815
April 3,664,387 4,271,172
May 3,501,134 3,646,622
June 3,727,720 3,984,547
July 3,170,175 3,393,397
January 7, 1921
THE MONETARY TIMES
179
The Candle of
Life is Burning
Hour bj- hour the flame burns the caudle
shorter until suddenly — a gust of wind — a
flicker — and the flame expires.
So with your life. You do not know
when the gust may come that will extinguish
the flame of your life, but you know that it
will come. Perhaps soon.
Familiarity with this fact often breeds in-
difi"erence — indifference that results in suff"er-
ing and privation to the family that might
easily be prevented.
Confederation Life Policies are designed
to prevent this. Do you really know the ex-
tent to which you and yours can be relie\ed of
all chance of such misfortune t
The Confederation Life Association is a
Canadian Company of established reputation.
It has for forty-nine years furnished the
Canadian public with insurance service and
has built up a large volume of business on the
basis of absolute care for the interests of its
policyholders, prompt and liberal settlement of
all just claims and absolutely fair treatment of
its agents.
Interesting literature as to any or all plans
of insurance will be gladly sent on application
to the Head Office, Toronto, or to any agent
of the company.
CONFEDERATION LIFE ASSOCIATION
J. K. MACDONALD
President
C. S. MACDONALD
General Manager
J. TOWER BOYD
Gen. Manager of Agents
HEAD OFFICE
TORONTO
180
THE MONETARY TIMES
Volume 66
Conference on Uniformity of Legislation in Canada
Model Fire Insurance Policy Act was One of Main Subjects Discussed this Year —
Revised Draft will be Prepared— Consolidation of Statutes, Sales of Goods, Part-
nerships, Labour Laws, and Devolution of Estates were other Subjects Discussed
UNIFORM conditions in fire insurance policies was one of
the subjects again taken up at this year's meeting of
the Commissioners on Uniformity of Legislation in Canada,
held in Ottawa, August 30 to September 3. The officers of
the conference 1920-21 were as follows: —
President, Sir James Aikcns, K.C., Winnipeg, Man.; vice-
president. Mariner G. Teed, K.C., St. John, N.B.; treasurer,
Frank Ford, K.C., Edmonton, Alta.; corresponding secretary,
J. C. Elliot, London, Ont.; recording secretary, John D.
Falconbridge, Toronto.
Local Secretaries (for the purpose of communication
between the commissioners of the different provinces) : —
Alberta, Frank Ford, K.C., Edmonton; British Columbia,
Avard V. Pineo, Parliament Buildings, Victoria; Manitoba,
Herbert J. Symington, K.C., Merchants' Bank Building, Win-
nipeg; New Brunswick, J. D. Pollard, Lewin, St. John; Nova
Scotia, Stuart Jenks, K.C., Halifax; Ontario, John D. Falcon-
bridge, 22 Chestnut Park, Toronto; Prince Edward Island,
W. E. Bentley, K.C., Charlottetown; Quebec, E. Fabre Sur-
veyer, K.C., 160 St. James St., Montreal; Saskatchewan, Robt.
W. Shannon, K.C., Regina.
It was ordered that the following resolution, adopted
in 1918, "That the members of the Committee on Uniform
Legislation of the Canadian Bar Association may attend this
conference and participate in the discussion, but without the
right to vote," should be communicated to the Canadian Bar
Association, together with an invitation to all members of
the association to attend any meetings of the conference.
The Legitimation Act
The report of the recording secretary on the Legitima-
tion Act was presented. After discussion it was resolved
that the conference receive the report of the secretary and
the commissioners reporting on the adoption of the Legitima-
tion Act by the provinces of Manitoba, Prince Edward Island,
New Brunswick and Saskatchewan, and, while recognizing
that the acts as adopted by those provinces are not identical
in form but contain similar enactments, recommend to the
provinces which shall enact this law that the shorter form of
statute as found at page 53 of the Proceedings of the Con-
ference, 1919, be adopted.
The commissioners considered the question of the re-
vision or consolidation of statutes and the indexing of
statutes submitted by the committee on legislative drafting,
and drew attention to the cumulative index now printed by
the province of British Columbia as an excellent example.
It was resolved that the commissioners go on record as ap-
proving the publishing each year by the authorities of each
province of cumulative index of the statutes from the date
of^the last revision.
The commissioners from British Columbia were requested
to forward to the attorney-general of each of the provinces
several copies of the sample index and a copy of the memor-
andum.
Sales of Goods and Partnership
The committee on sales of goods and partnership re-
ported that the Sales of Goods Act, 1893. was now in force
in all the provinces of Canada, except Quebec, havino; been
adopted in New Bi-unswick and Prince Edward Island at the
instance of the commissioners from that province in 1919, and
in Ontario upon similar recommendation in 1920; that the
Factors Act, 1889, was in force in Alberta, British Columbia,
New Brunswick, Nova Scotia, Ontario, Prince Edward Island
and Saskatchewan, having been adopted in Prince Edward
Island in 1920, and that it would probably be adopted in
Manitoba in 1921, and that as a result of adoption on recom-
mendation of commissioners in New Brunswick, Ontario and
Prince Edward Island in 1920, the Partnership Act, 1890, was
now in force in all the provinces of Canada except Quebec.
A report as to the state of the law on these subjects in vari-
ous British Dominions and with reference to limited partner-
ships and registration of partnerships was also submitted to
the conference.
A draft of a proposed act respecting warehousemen's
lienS" was presented by the commissioners from British
Columbia, and was considered clause by clause and certain
amendments adopted, and the act was subsequently referred
to the commissioners of New Brunswick to draft a model bill
and report at the next conference.
Labor Laws
Senator Robertson, Minister of Labor, addressed the
commissioners on the subject of "Uniformity of Labor Laws
in Canada," and referred to the advantage of uniformity in
the laws relating to the welfare of those engaged in in-
dustrial work in the several provinces of the Dominion of
Canada; at the conclusion of his address the subjects dis-
cussed by him were referred to by the president, the vice-
president and some of the other members of the conference.
The report of the committee on a uniform Bulk Sales
.4ct was presented by the commissioners of British Colum-
bia, and was considered clause by clause, and after certain
amendments were approved the act was referred to the Mani-
toba commissioners to revise and forward copies to the com-
missioners for submission to their respective legislatures.
Fire Insurance Conditions
The report of the committee upon a model statute on
fire insurance conditions, together with a draft bill, was pre-
sented by R. W. Shannon. The conference thereupon re-
solved itself into committee of the whole and considered the
bill section by section. Mr. Jenkins, representing the Can-
adian Underwriters' Association, was present, and took part
in the discussion of the act. After discussion of the remain-
ing sections of the proposed act and deciding upon some
changes therein, the act was referred to the Manitoba com-
missioners and Mr. Shannon, to be redrafted in accordance
with the amendment decided upon, and reprinted and for-
warded to the various commissioners to be by them brought
before their legislatures.
W. B. Wallace presented the report of the committee to
which had been referi-ed the Conditional Sales Act, and the
Draft Act submitted was discussed at some length.
Devolution of Estates
Francis King presented the report of the committee on
the devolution of estates. On motion of Mr. Ellis, seconded
by Mr. Pitblado, it was resolved that the conference affirm
the principle of the desirability of uniformity of laws with
respect to the devolution of estates, .both real and personal.
On motion of Mr. Pitblado, seconded by Mr. Symington,
it was resolved that in endeavoring to bring about uniformity
of legislation in regard to the devolution of estates, real and
personal property of intestates should be treated in the
same manner. After discussing the various principles of the
proposed act it was resolved that the matter of devolution of
estates of intestates be referred back to the commissioners
for Ontario, with instructions to draft a model act in the
light of the discussion which had taken place, and to have
copies of the act printed and sent to the commissioners for
January 7, 1921 THEMONETARYTIMES 181
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EXCELSIOR
INSURANCE
LI
COMPANY
A STRONG CANADIAN COMPANY
ESTABLISHED 18S9
Magnificent Results of the Operations of 1920
NEW INSURANCE WRITTEN
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INSURANCE IN FORCE
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A continuous favorable mortality experience from only Canadian
policyholders, high interest earnings combined with unsurpassed
security are features which should influence you to place your
insurance with the Excelsior.
Particulars of our new Special Investment Policy will be sent on request. s
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The Continental
Fire Insurance Company
Head Office :
Trustee Building, 322 Main Street,
WINNIPEG, MAN.
General Agents for Alberta :
H. B. Macdonald & Company, Limited,
Calgary, Alberia
General Fire Insurance
Business Transacted
Applications for Agencies invited.
Insure in a Canadian Company whose funds
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Reinsurances Placed with British and
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_ A. F. PEARSON & COY. m
I /nsuronce Managers and Reinsurance Brokers g
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I Secretary -ROBERT W. REID Mgr. Treaty Dept.-W. R. BEA VIS |
^ Directors : ^
1 A. RENDTORFF ' FREDK. SMITH M
1 OFFICES: 1
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THE MONETARY TIMES
Volume 66
the several provinces three months before the next session
of the conference.
The act respecting conditional sales of goods was dis-
cussed clause by clause and certain amendments decided
upon.
The conference later resumed consideration in committee
of the whole of the model bill respecting conditional sales
of goods. It was resolved that this bill be referred to the
Saskatchewan commissioners to redraft in the light of the
discussion and having in mind the act adopted by the United
States, and to report with a model act at the next session of
the conference.
Mr. H. J. Symington presented the report of the com-
mittee on company law. After considerable discussion as to
the abolition of the doctrine of tiltra vires and also as to
whether incorporation should be by memorandum of associa-
tion or letters patent the conference adjourned.
The subject of wills, including any acts effecting the
Wills Act, such as dower, courtesy, etc., was referred to the
Alberta commissioners to bring in a report at next year's
conference upon the whole subject with a view to having a
model act based thereon.
The question of reciprocal enforcements of judgments
was referred to the Prince Edward Island commissioners to
draft a model act and report at the next session of the con-
ference.
Property Rights
The matter of the laws relating to the protection and
property rights of married women was referred to the British
Columbia commissioners with a request that they investigate
and report on the laws of the different provinces relating to
the above-named subject, such report to be the basis of
future action.
It was resolved that the president of the conference. Sir
James Aikens, be requested to urge upon the governments
of Quebec, Nova Scotia and Prince Edward Island the de-
sirability of their appointing commissioners or representa-
tives to this conference.
It was resolved that the subject of succession duties, in-
cluding probate, legacy and estate duties be referred to the
commissioners from Nova Scotia to investigate and report
thereon to the conference with such suggestions as they
deem advisable.
Reverting again to company • law, on motion of Mr.
Pitblado, it was resolved that any model act drawn make
provision for doing away entirely with the doctrines of
ultra vires in so far as it relates to corporate contracts along
the line of the resolution passed by the Canadian Bar Asso-
ciation in 1919, but that at the same time the model act
attempt to give some protection to the shareholders or
creditor if the company is engaged or attempting to engage
in business outside the scope of the objects of incorporation.
On motion of Mr. Symington it was resolved that the
Manitoba commissioners be instructed to draft the proposed
act in accordance with the principle of incorporation by
memorandum of association.
It was resolved after some further discussion that the
matter of the company law be referred back to the Manitoba
commissioners for the purpose of drafting a model uniform
act upon the subject in the light of the discussion, and recom-
mendations that have been made at this meeting, and to re-
port at the next meeting of the conference.
Officers of the conference were elected for the ensuing
year as follows: President, Sir James Aikens, K.C. ; vice-
president, Mariner G. Teed, K.C; treasurer, Frank Ford,
K.C; corresponding secretary, J. C Elliott; recording secre-
tary, John D. Falconbridge.
It was resolved that in 1921 the conference meet four
days before the opening of the Bar Association Convention.
It was resolved that the corresponding secretary be re-
quested to notify the different commissioners at least one
month in advance of the time and place of meeting of the
conference, and that at the earliest moment copies of the
minutes and verbatim report of the discussion be sent to the
local secretaries of the commission.
PLATE GLASS INSUR.ANCE UNDER HIGHER RATES
Result of Rapid Rise in Value of Glass — Supply Now More
Plentiful, However
By a. Wy^urn Eastmuee
Managing Director, Casualty Company of Canada
CONDITIONS arising out of the war have been a logical ex-
cuse and explanation for the enormous increase in the
price of practically all staple goods, and plate glass is no ex-
ception. Plate glass is imported into this country, a fact
which, coupled with the high freight rates and transportation
risk, is an adequate reason for the prevailing price and
high premiums now charged for the insurance of plate glass.
Although realizing that war conditions were not always
to exist, companies insuring glass were, until July last, loathe
to put into force such increases in the premium rates as the
glass market warranted, yet the experiences of the past four
years rendered it absolutely necessary that an increase of ap-
proximately 100 per cent, should be made throughout the
whole Dominion. It is impossible to forecast an immediate
reduction in insurance rates, but ovnng to the fact that Bel-
gium and Southern France, Canada's chief source of supply,
are again manufacturing and exporting, the trade outlook is
somewhat improved; this, combined with the decline in the
automobile industry, which used many thousand square feet
of plate glass annually in the manufacture of windshields, and
the enforcement of the present building restrictions, once more
enables dealers to stock up and meet the ever-increasing de-
mand.
With glass premiums assuming such large proportions —
in many cases more than double what they were last year —
the question is constantly asked whether the landlord or the
tenant should bear the expense, and a curious fact not gener-
ally known is that unless dealt with by specific agreement
neither one nor the other is legally responsible for broken
plate glass.
Tenant Sometimes Bears Loss
Experience has proved that it is a wise tenant who car-
ries insurance, taking care that the expenditure is accounted
for under the terms of his lease. True, the landlord is re-
sponsible for glass broken by lightning, tempest or the settle-
ment of a building owing to structural defects, but breakages
may be due to many other causes such as defective setting,
window dressing, slamming of doors, stones thrown by pass-
ing vehicles, or the pranks of small boys, not to mention the
ninety and nine cases reported to the companies daily as due
to "unknown causes."
A plate glass policy is self-protection to the holder, in
that he can effect immediate replacement through his insur-
ing company, instead of being put to the inconvenience of first
getting in touch with his landlord (who, like the policeman, is
never there when wanted), and with whom, when found, an
argument as to who should assume the liability usually ensues,
resulting often in considerable delay.
Insurance Companies Replace Glass More Cheaply
The yearly cost to owners and tenants for replacing
breakages of uninsured glass is sufficient to pay the premiums
on all lights not covered by policies, and investigation dis-
closes the fact that individual customers pay more for such
work than is paid for similar leplacements made through an
insurance company. The reason for this is that insurance
companies are large users and can purchase plate glass at
better prices than the individual; they also possess every
facility for handling same and for making replacements.
Plate glass was never a more legitimate subject for insur-
ance than it is to-day, and the protection provided is now re-
garded as a real necessity to the property owner and tenant.
In 1919 plate glass insurance in Canada was transacted
by twenty-five companies, viz.: Twelve Canadian, seven Brit-
ish and six foreign companies. The premiums received dur-
ing the year were $375,473.00 and total losses paid $226,-
206.00, showing a loss percentage as applied to premium in-
come of 60.5 per cent. Data is not yet available for the present
year, but it is hoped that it will show a more favorable ratio.
January 7, 1921 THE MONETARY TIMES
■Your
How many prospects for life assurance are there in the territory you represent ?
How many of them can 3'ou insure ?
If you represented the NORTHWESTERN you could insure a very large percentage
of them for, while the NORTHWESTERN takes no more chances than any other life
insurance compau}-, its officers believe that a life insurance company exists to insure lives
and we usuall}' find a wa}' of doing so.
The NORTHWESTERN stands in the ver}' forefront of Canadian Life Insurance
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WATERLOO, ONTARIO
M. P. LANGSTAFF, A.I.A., F.A.S. S. C. TWEED
Assistant Manager and Actuary President and Managing Director
184
THE MONETAKY TIMES
Volume 66
Canadian Hail Underwriters' Association Results
Good Results Reviewed at Annual Meeting in Toronto in November-
Loss Ratios, Manitoba 24.2 Per Cent., Saskatchewan, 41.8 Per Cent.,
Alberta, 34.4 Per Cent.— Competition With Municipal Insurance Scheme
MOST of the companies writing hail insurance in western
Canada are members of the Canadian Hail Underwriters'
Association. This organization held its annual meeting iu
Toronto on November 19 last, when the results for 1920 were
reviewed. The secretai-y, H. H. Campkin, of Regina, had sum-
marized the figures for the companies. He said in part:—
"The season of 1920 has proven a satisfactory one to the
majority of the members. A glance at the map of the 1920
experience will show that the severe storm centres have been
small but that there has been a considerable amount of scat-
tered hail throughout all the provinces. The high prices of all
cereal commodities have caused the farmers to seek more pro-
tection and this factor should not be lost sight of in consider-
ing the season's operations. And, further, owing to the fail-
ure of the 1919 crop in the western part of Saskatchewan,
and parts of' Alberta, farmers were compelled to take insur-
ance to satisfy their creditors. With the exception of the
province of Manitoba and a number of the townships in east-
em Saskatchewan the majority of the townships show a lai-ge
increase over the business of previous years.
"In preparing the various statements submitted to you
throughout the year the fact was not lost sight of that many
of the head offices were far removed from the scene of actual
operations, and the information was therefore compiled with
the view of allowing the figures to speak for themselves. If,
however, this method fails, to furnish the information that is
required suggestions would be appreciated as to the best
means of conveying same. The companies having their head
offices in western Canada naturally base their operations on
their own, and observed, experience.
Province of Alberta
"The premiums received by members of the association
this year amount to $2,172,189 with losses of $746,583 _as com-
pared with $691,096 premiums and $328,827 losses last year,
or a loss ratio of 34.4 per cent, as compared with 47.58 per
cent, in 1919. The premium income of the association has
been affected by the successful operations of the municipal
scheme in force in that province. They have, I understand,
promulgated a rate of 6 per cent., which will cover their
losses and expenses and provide a reserve.
"In reference to the reduced area (which is the four
ranges west of the western boundary of Saskatchewan to
township 46, etc.) the premiums collected in this area this
year were $124,446 with losses of $28,896 as compared with
$4,685 premiums and $5,055 losses of last year.
"In surcharge areas (in toN\Tiships 41, 42, 43 and 44, in
ranges 11, etc.) the premium income this year is $63,384 with
losses of $14497. Evidently the rate is detrimental to the
receipt of business, for in 1918, which was the first year of
the surcharge, the pi'emiums received in the same area were
$138,799 with losses of $8,403. In surcharge district No. 2
(being townships 51, 52 and 53, in ranges 27, etc.) the pre-
miums received this year were $3,376 with losses of $1,658,
.rhile in 1918 the premiums received from the same area were
$11,180 with losses of $.337.
"The business for 1920 was written in 1336 townships. Of
these 929 reported no losses; 202 had losses under 25 per cent.;
66 had losses under 50 per cent., and 139 had losses of 70 per
cent, and over. The largest amount of premium received in
any one township was $16,294 and the smallest $5.00. The
largest amount of loss in any one township was ^27,509 and
the smallest $10.00.
"During the summer letters have been received from locul
agents complaining of the rates charged and pointing to the
favorable experience their particular district enjoyed, and
while no reports have reached me of non-association com-
panies writing at a much reduced rate there appears to be a
strong feeling with the field force that the rates in certain
areas do prevent the obtaining of business.
Province of Saskatchewan
"With the exception of the southeastern part of the prov-
ince crop conditions have been fairly good and the business
was more distributed thi'oughout the province this year than
in any previous one. The business written by the members n
1920 amounts to $3,607,951 with losses of $1,509,004 as com-
pared with $2,122,485 premiums and $1,659,652 losses of last
year. The loss ratio this year was 41.8 per cent, as com-
pared with 78.20 per cent, last year.
"The northern part of the province escaped any severe
storm although there was scattered hail at many points.
Nevill, Herbert, Cabri and Yellow Grass were the principal
storm centres, as the map of 1920 experience will show.
Taking again township 50 as the northern boundary at which
business is written, there are about 3,000 townships in the
province. Business was received from 2,521 of these; 1,791
report no losses, 302 had a loss under 25 per cent., 110 the
loss" was under 50 per cent., and in 318 the loss was 70 per
cent, and over. The largest amount of premium received in
any one township was $14,508 and the smallest was $2.00.
The largest amount of loss in any one township was $54,207
and the smallest amount $2.00.
"The records of the reduced areas in the northeastern pare
of the province this year show premiums received of $66,289
with losses of $10,765 as compared with premiums of $40,673
and losses of $20,177 last year. In the reduced area in the
northwestern part of the province the premiums received were
$8,985 and no losses as compared with $2,107 premiums last
year and no losses.
"In regard to surcharge area No. 1 (being townships 32
to 37 inclusive, in ranges 20 W2nd to 13 W3rd) the premiums
received this year were $124,101 with losses of $17,063. When
combined with the experience of previous years this surcharge
area stands at: Premiums $528,686, losses $539,645.
"In reference to surcharge district No. 2 (Radville dis-
trict) the premiums received this year were $31,568 with losses
of $33,226. When combined with the experience of previous
years this stands at: Premiums $182,166, losses $156,829.
"In surcharge district No. 3 (Hirsch district) the pre-
miums received this year were $11,671 with losses of $9,606.
When added to the combined expei'ience of pre\'ious years
this stands at: Premiums $32,616, losses $33,121. Those of
you who are writing in this district know from experience
that many of the farmers residing in this area are "hail
farmers."
"Non-association competition was quite keenly felt at
some points and, from the records, it would appear that in the
eastern part of the province the members lost business as in
many of the towTiships the premiums received this year were
less than they were in 1919, while its generally conceded that
more insurance was carried. The municipal hail scheme again
had to raise a special levy on the seeded area and with the
legislation passed last spring enabling a farmer to withdraw
his land from the operations of the hail act it is reported that
the acreage under the scheme was reduced by nearly 50 per
cent. At the present time reliable information is difficult .o
obtain as to the operations of the past season.
Province of Manitoba
"Premiums received in this province by members of tl.e
association in 1920 amount to $295,565 and losses of $71,535
as compared with $304,777 premiums and $84,936 losses last
year. Business this year was written in 495 townships as
compared with 492 last year. Of these 399 report no loss; in
33 the loss is under 25 per cent., in 13 it is under 50 per cent.,
January 7, 1921
THE MONETARY TIMES
185
TOTAL SECURITY
$46,500,000
' THE ^
^
1 LONDON & 1
f
f Lancashire!
L
INSURANCE C-y
■
\
Ih^ ™^
/
^^""""""^^K^^^
CHIEF OFFICE FOR CANADA
14 RICHMOND STREET EAST
TORONTO
ALFRED WRIGHT A. E. BLOGG
MAMAGER SECRETARY
ALFRED WRIGHT
President
ALEX. MACLEAN
Manager & Secretary
Personal Accident
Employers' Liability
Fidelity Guarantee
Teams' Liability
Sickness
Workman's Compensation
Elevator Insurance
Plate Glass
Automobile Insurance
Head Office
Company's Building, 61-65 Adelaide Street East
TORONTO
Branches:
iebec and Maritime Provin
tnitoba and Saskatchewan
itish Columbia and Alberta
MONTREAL
WINNIPEG
VANCOUVER
iiiiiiiiniJiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiw^^^^^^^
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It's Too Late — Afterwards!
In placing your insurance, make sure that the
companies you select are sound. Caution in a
matter of this kind distinguishes the good business
man. The companies listed on page five of this
publication are all safe to insure with.
Every form of policy written in Canada, containing
every worth-while advantage and privilege to the
insured, is offered by the advertisers in the
Insurance section of
The Monetary Times Annual
1867
As Old as the Dominion of Canada
1921
sniniiijiiiiijiwiiffliiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^
186
THE MONETARY TIMES
Volume 66
and in 50 it is 70 per cent, and ovci\ The largest amount of
premiums received in any one township was $7,329 and the
smallest amount $12.00. The largest amount of loss paid in
any one township was $7,580 and the smallest $13.00.
"The surcharge area in the centre of the province yielded
a premium income this year of $7,870 with losses of $858. The
figures of the combined experience of this district now stand
at: Premiums $120,738, losses $58114. In the surcharge dis-
trict in the southwestern part of the province, and contiguous
to the Saskatchewan boundary, the premiums were $24,558
with losses of $1,895. The combined standing of this area is
now: Premiums $79,758, losses $86,741.
"The competition of non-association membership in Mani-
toba was very keenly felt and, in addition to this, the munici-
palities are contemplating the organization of a scheme based
largely upon the Alberta act. Should this scheme go into
effect next year still greater diflRculties are likely to be experi-
enced in maintaining a premium income with the rates that
are now in force."
Premiums and Losses
A synopsis of premiums and losses as filed by members of
the Canadian Hail Underwriters' Association for 1920 is as
follows:
MANITOBA
Premiums Losses
Acadia Fire Insurance Co. $21,445 $2,898
Alliance Assurance Co. 5,827 174
Bee Hail Insurance Co. 2,251 235
British Crown Assurance Corporation 266
British Traders Insurance Co. 5,144 1,109
Canadian Indemnity Co. 40,270 8,761
Canada Security Assurance Co. 14,131 2,705
Connecticut Fire Insurance Co. 27,287 5,825
Continental Insurance Co. 87
Eagle, Star and British Dominions In-
surance Co. 2,714 25
Employers' Liability Assurance Co. 12,292 8,420
Excess Insurance Co. 8,777 2,827
Federal Insurance Co. 2,342 ISO
Fidelity-Phenix FLre Insurance Co 3,019 144
Fidelity (Fire) Underwriters 1,025 410
General Accident, Fire and Life Assur-
ance Corporation 1.904 835
Glens Falls Insurance Co. 11,519 364
Hartford Fire Insurance Co. 16,712 8,207
Home Insurance Co. 24,118 10,030
New York Underwriters Agency 23,131 7,589
Nova Scotia Fire Underwriters Agency 8,074 775
Phoenix Insurance Co. of Hartford 11,551 1,413
Rochester Underwriters Agency 246
Scottish Canadian Underwriters Agency 13,683 2,676
Union Insurance Society of Canton 1,248
Westchester Fire Insurance Co. 27,509 4,521
Winnipeg Fire Underwriters Agency — 7,857 777
Western Underwriters Agency 1,136 585
Total $295,565 $71,535
Loss ratio, 24.2 per cent.
SASKATCHEWAN
Premiums Losses
Acadia Fire Insurance Co. $99,381 $19,471
Agricultural Insurance Co., Ltd. 34,995 3,398
Alliance Insurance Co. 133,800 49,250
Bee Hail Insurance Co. 105,066 61,931
British Crown Assurance Corporation __ 142,090 73,836
British Traders Insurance Co. 79,037 36,894
Canadian Indemnity Co. 159,749 55,661
Canada Security Assurance Co. 194,748 161,433
Connecticut Fire Insurance Co. 170,703 57,056
Continental Insurance Co. 104,407 47,882
Eagle, Star and British Dominions In-
surance Co. 63,165 30,697
Employers' Liability Assurance Co 195,833 72,683
Excess Insurance Co. 128,917 57,136
Premiums
Farmers' Fire and Hail Insurance Co._. $67,287
Federal Insurance Co. 47,853
Fidelity-Phenix Fire Insurance Co 47,967
Fidelity (Fire) Underwriters 97,707
General Accident Insurance Co. 40,571
General Accident, Fire and Life Assur-
ance Corporation 168,257
Glens Falls Insurance Co. 119,084
Great North Insurance Co. 77,574
Hartford Fire Insurance Co. 254,480
Home Insurance Co. 243,690
London Guarantee and Accident Insur-
ance Co. • 108,721
Merchants' Fire Assurance Corporation 91,598
New York Underwriter^ Agency 97,952
Nova Scotia Fire Underwriters Agency 44,841
Phcenix Insurance Co. of Hartford 73,309
Rochester Underwriters Agency 43,464
Scottish Canadian Underwriters Agency 23,766
United Assurance Co 82,328
Union Insurance Society of Canton 52,099
Westchester Fire Insurance Co. 179,240
Winnipeg Fire Underwriters Agency 10,986
Western Underwriters Agency 23,286
Total $3,607,951
Loss ratio, 41.8 per cent.
ALBERTA
\ Premiums
Acadia Fire Insurance Co. $19,805
Alliance Assurance Co. 54,885
Bee Hail Insurance Co. : 30,557
British Crown Assurance Corporation 86,484
British Traders Insurance Co. 35,138
Canadian Indemnity Co. 83,386
Canada Security Assurance Co. 326,567
Connecticut Fire Insurance Co. 60,048
Continental Insurance Co. 40,246
Eagle. Star and British Dominions In-
surance Co 39,857
Employers' Liability Assurance Co. 185,388
Excess Insurance Co. 53,673
Fai-mers' Fire and Hail Insurance Co 122,527
Federal Insurance Co. 63,160
Fidelity-Phenix Fire Insurance Co. 25,799
Fidelity (Fire) Underwriters 32,137
General Accident Insurance Co. 31,923
Glens Falls Insurance Co. 7,005
Great North Insurance Co. 41,436
Hartford Fire Insurance Co. 92,518
Home Insurance Co. 236,338
London Guarantee and Accident Insur-
ance Co. 18,205
Merchants' Fire Assurance Corporation 13,465
Nova Scotia Fire Underwriters Agency 86,453
Rochester Underwriters Agency 50,994
Scottish Canadian Underwriters Agency 20,365
United Assurance Co. 106,441
Union Insurance Society of Canton 75,953
Westchester Fire Insurance Co. 14,598
Winnipeg Fire Underwriters Agency 59,499
Western Underwriters Agency 58.339
Total $2,172,189
Loss ratio, 34.4 per cent.
Losses
$29,581
17,925
24,310
36,157
15,595
42,086
68,.':-8l
12,079
114.168
101,637
19,966
51,405
42.632
13,S52
31,920
8,311
2,018
33,465
16,953
127,745
3,0 VI
3,631
$1,509,004
Losses
$6,001
14,819
8,548
21,544
7,870
21,170
98,967
15,.'^05
14,139
14,051
98,346
9,696
28,.59o
33,203
6,992
10,494
7,232
9,338
13,467
33.242
101,542
8,149
2,069
33,685
16,536
8,580
30,325
24,832
6,228
19,96S
20,158
$746,583
Commenting on 1920 results, the Excelsior Life Insur-
ance Company says: "About $11,000,000 will represent the
new issue for the year, the total in force being approximately
$40,500,000. The present scale of dividends will probably be
maintained."
January 7, 1921
THE MONETARY TIMES
187
FARMERS MUTUAL FIRE INSURANCE
The Big 4 of Western Canada
^iiiininiiiiiiiiiiiiiiiiiiiiiiiiniiiiii iiiiiiiiii iiiiiiiiiiiiiiiiiiiitiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiimiiiinimiuuiiiiiiiii| |iiniiiiJiiiiiijiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiimii»iiiiuiiiiiiiiiiiii iiiiiiiiiiiiuiiiiniuiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiniiii>iiiiiiiiiiiiiiii|
I PORTAGE [:. PRAIRIE | | ZSSu mZ^ !
I FARMERS^ MUTUAL I I ^^^^oaw ■
I FIRE INSURANCE CO. I COMPANY
1 n .L ■ I HEAD OFFICE - BEULAH, MAN. I
I (jrowth: i j ' I
I Dec. 31st, 1895— Total amount of I | _ |
I insurance in force $ 1,632,666.00 § | Licensed in Manitoba and Saskatchewan |
I Dec. 31st, 1900— Total amount of | | |
I insurance in force 4,408,061.00 i 1 , • r I
I Dec. 31st, 1905-Total amount of | | Insurance in force: |
I insurance in force 11,806,165.00 j | December 31st, 1889 . - - $ 712,540.00 j
I Dec. 31st, 1910— Total amount of | | " 31st, 1894 - - - 1,333,064.00 |
I insurance in force 20,350,581.00 | | " 3ist, 1899 - - - 1,990,846.00 |
j Dec. 31st, 1915— Total amount of II" -^^st, 1904 - - - 3,306,100.00 i
I insurance in force 30,288,709.00 | | •' 31st, 1909 - - - 6,259,443.00 |
I Xov. 30th, 1920— Over 62,250,000.00 | | " 3ist, 1914 - - - 14,148,959.00 I
i We have paid the Farmers of Manitoba over I I November 30th, 1919 over - - 30,000,000.00 1
I $1,000,000.00 for loss claim.. j j " 30th, 1920 - - - 37,000,000.00 |
i M ^•'l' u "'"["'"y '"»»"'■ '" '»•* Province of | | j ^g ^ pRAZER, M. G. DOYLE, I
I Manitoba only. | | PRESIDENT. SEC.-MANAGER. j
§ President Tbeasurek giiiii riiiiiiiiiiiiniuiili,^ 3iiiiiuiiuiiiMJiHiiniiiiiiiij= „ „ „„,,,,„,,„ i
i E. H. MUIR A. H. THORPE j i I / I H. E. HEMMONS, I
StCBETARY-MANAGEB | \v\l//// = TREASURER. I
STRATTON WHITAKER j \^mill///// j |
I "II iiiimimiiiiimiii miiniiimiiniiii liiniiuiiuiiiiinii'^ THE WESTEBN CANADA MUTUAL ?niiiiiiiiiiuiniiimiiiiiiin«inninniiriiiiii iiiimiim mmmiiiiiiiiiiii iiiiii i raiins
i FIBE INSURANCE ASSOCIATION | |
^ 1 HL oAOIvA 1 LMLWAIN SmiiiuiimniuiiiBBiiMnit |m)iiiii ummiiniiiinuil ALBERTA'S LARGEST MUTUAL I
i FARMERS' MUTUAL FIRE I | WESTERN MUTUAL FIRE I
I INSURANCE COMPANY | | INSURANCE COMPANY |
I SASKATOON - - - SASK. , | ^^^^ ^^^^^^ DIDSBURY, ALBERTA I
I Progressive statement j | or- I
E Showing th<, growth of the Company since its | | BusmeSS in t OrCC: |
I inception. | j December 31st, 1914 - - - $ 407,889.00 j
i Year. Business Written. Increase. | | " 31st, 1915 - - - 2,172,204.31 |
P 1908 (10 months) $ 1,157,905.00 | | " 31st, 1916 - - - 4,026,495.81 |
I 1909 2,476,014.17 $1,318,109.17 | | " 31st, 1917 - - - 6,569,893.94 j
i 1910 4,374.001.17 1,897,987.00 j j " 31st, 1918 - - - 8,265,402.82 |
I 1911 6,797,598.52 2,423,597.35 j | " sist, 1919 - - - 9,883,877.56 |
I 1912 8,566,273.67 1,768,675.15 | | November 30th, 1920 - - - 13,023,676.12 |
I Zl lifrillll tltifoil I ■ Mutual Fire Insurance Companies have no |
I ]l]\ iim'Tfiqlo 1197 89340 • ■ stockholders, therefore no profits are earned and |
■ or -'iilsq!'-^ AISZ I i distributed as dividends. BUT, every policy- |
■ Q 7 8''i2'?29'27 297 ItSo ■ ■ bolder effects a saving, the same to him as a |
8 9 8 • 3'988 9??'97 5'?46'832?0 ■ I dividend, by the lower cost of his insurance. That j
I \l]l 31 S57 -55 11 ^'368 78314 = I °'^'- members appreciate the benefits of adequate i
I 1920 Nov. 30th Ss'.OOoioOo'.OO 6:642;244:89 I | protection at the minimum cost is indicated by j
i ' ' . i 1 the progress shown in schedule above. s
i The largest and strongest Farmers' Mutual Fire = = „„,,„ §
I Insurance Co in Saskatchewan. 11 H. B. ATKINS, M.L.A., PARKER R^ REED, j
I JNO. EVANS, MURDO CAMERON, M.L.A., | | President. Managing Director. ,
I President. Vice-President. | | THEO. REIST, I
I J. CAMERON, Sec-Manager. | | Treasurer. |
Siiii;iiiiMiininiiBinii5iimmiiiiiiiiniiiiiiiiiiiiniiiiniiiiiiiiriiiiiiiiiiiiniiiiiiiiira«niiinimiiiiniiimirmiiiimiiiniiiiiiiiiiiiimiiiiiiiim .liiiiiiiiiiNiiiiiniiniiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiniiiiniiiiiiimtiiiininiiiiiiimiiiiiiiniiiniiiinnninfflniii^
188
THE MONETARY TIMES
Volume 66
GROUP INSURANCE A SUCCESS IN CANADA
From the Manufacturers' Viewpoint, at Least — Welcomed in
Industry — Only Certain Companies are in a Position
to Handle the Business, However
IT is now a little more than a year since life companies were
permitted to write group insurance in the Dominion,
during which time a considerable amount of business has
been transacted, although operations have been retarded some-
what by the labor unrest and the general industrial condi-
tions which have prevailed.
The Canadian companies which are now writing this class
of insurance include the Canada Life Assurance Co., the Sun
Life Assurance Co., Manufacturers Life Assurance Co., Great
West Life Assurance Co., London Life Insurance Co. The
American companies doing business here are: jEtna Life
Insurance Co., Equitable Life Assurance Society, Metro-
politan Life Insurance Co., Prudential Insurance Co. and the
Travellers Insurance Co.
!
Viewpoint of Smaller Company
It will be noticed that only the largest and strongest
companies are operating, and some of these are delaying
action until the business outlook has impi-oved. The chief
reason for this is better explained in the words of another.
The North American Life Assurance Company, in a circular
addressed to agents, made the following comment: —
"It is just as well to point out that both from a company
and an agency point of view there are two sides to this ques-
tion. From the company's point of view there is the con-
sideration that the premiums chai'ged, if made competitive,
are so low as to reduce the margin of prospective profit to a
minimum. As a matter of fact, while the comparatively few
American companies transacting this business had up until
last year claimed a slight profit, the influenza epidemic en-
tirely wiped that out, so that the business as a whole must
up to the present time have netted a loss. One has to con-
sider, too, that a company is compelled to assume a tremen-
dous obligation and to build up a liability without the creation
of any reserve fund. It is indeed a matter for the most seri-
ous consideration, whether our Canadian companies are large
enough to accept the liability involved in the transaction of
group insurance on any scale. Nor should we overlook the
fact that the overhead charges necessitated through the ap-
pointment of inspectors and men in the field and at home
office competent to look after the business makes the cost
alone prohibitive uiiless a very considerable business is done.
In brief, the chances of a substantial loss to the company are
great, while the margin of prospective profit is extremely
small. Furthermore, it should be remembered that in the
United States, where group insurance was initiated, only a
few companies have up to the present time considered it wise
to venture into the field. At the present time only the very
largest, and a very few of them are engaged in it. Ordinary
business prudence demands on our part extreme caution and
further light before we undertake it.
"Moreover, it is not clear that this class of business will
result very profitably to the agents. The commissions are
small, and unless the premiums charged are equal to the
lowest, the agent has little likelihood of success in his can-
vass. The company's officials are alive to the situation, though
not at the present time prepared to make a definite announce-
ment."
A Venture
From the above, it is apparent that group insurance in
Canada is considered a venture, speaking from the viewpoint
of the insurance companies. Those companies which are en-
gaging in the business must first show that it is profitable,
then perhaps more may follow, as the Dominion is sufficiently
broad enough, industrially, to enable a healthy business to
be carried on by a considerable number of companies. The
country is at present being canvassed aggressively, and as
our commerical organizations realize more the value of group
insurance, the way should become easier.
As far as the scheme itself is concerned, there can be
no doubt as to its benefits to the commercial organizations
of this country and their employees. It is true that some
people, particularly of the laboring class, consider any such
schemes as traps or binding ties, which work to their disad-
vantage ultimately, but intensive advertising amongst this
class, which can be accomplished through the daily press or
by distributing literature, should overcome this difficulty, and
then to bring the employers to an understanding would be
a simple matter.
The Canada Life has summed up the advantages of
group insurance as follows: "Many employees want life in-
surance protection, but are not insurable and cannot get a
policy themselves. Many are not insured, because they spend
all they earn and think they cannot afford a policy. Many
who are husbands and fathers do not fully realize their re-
sponsibilities towards their families and fail to insure.
"The group plan puts all employees into the insurable
and insured class. It gives each of them a policy without
examination and without expense. It links the home and the
dependents of the employees more closely to his work and
his employer. The goodwill and appreciation of the home
and family is a most important factor in developing loyalty
and co-operation.
"It tends to retain the better class of men and women
in office and plant who are of greatest worth to the success
of the business, and who appreciate most the protection pro-
vided for them and their dependents. Their appreciation
grows as time goes on when they see the cash benefits that
are derived from insurance.
"Group insurance thereby becomes an investment that
gives an increasing return to the employer by way of an
interested class of employees, better team work, greater
efficiency and reducing costs through labor turnover. It puts
on a business basis the relieving of the distress that follows
the death or total and permanent disability of employees,
free from discrimination and free fi'om the stigma of charity."
Evidences of its Value
Several industrial and commerical corporations have
given testimony as to the value of such insurance. The Dun-
lop Tire and Rubber Company is one of the largest finns in
Toronto to adopt the plan. An official of the company stated
that group insurance had undoubtedly been a success in his
finn. The scheme had been adopted, he said, merely for the
purpose of improving the lot of the workmen, and from the
standpoint group insurance had lived up to all the advance
claims. The Dunlop Company, he said, had recently taken
steps to have a clause insei-ted in their policies which pro-
vided for a continuation of the insurance upon a workman
who, through business depression, was laid off for a period.
This insurance applied during a period up to three months,
provided that the workman did not sever his connection with
the firm in the meantime. At the outset a number of work-
men looked upon this scheme with hostility, fearing that
ai'tificial means were being adopted to induce them to work
harder. In the meantime, however, the value of the scheme
had been brought home by the deaths of two members of
the staff and the prompt payment of the face of the policies
to the beneficiaries.
Information obtained from a number of other firms, in-
cluding the Spanish River Pulp and Paper Mills, Limited;
the A. R. Williams Machinery Co. Limited, and Ritchie and
Ramsey, also of Toronto, was along similar lines. It was
apparent, however, that no direct benefits to the company,
pecuniary or othei-wise, could be accounted for as a result
of this insurance. It is perhaps a little too early to determine
this question, since group insurance in most cases has been
in operation considerably under one year.
On the other side, however, the experience dates farther
back, and American firms have for that reason had an op-
portunity of studying the effects of this group plan of in-
surance. The Williamsport Radiator Co., of Williamsport,
Pa., writes that the company is directly benefitted by the
feeling of better contentment among the employees.
January 7, 1921 T H E M 0 N E T A R Y T I M E S ' 189
:!llllllllllllllllllllllllllllllllllllllllllllllllllllll Illllllllllllllllllllllllllllllllllllllllllllllllllll Illllllllllllllllllllllllllllllllllllllllllllllllllll^
I GROUP ASSURANCE I
I A PROVEN SUCCESS |
i Although permitted in Canada only for a brief period, Crroup Assurance has |
i already demoustrated its importance as a powerful factor in the improvement |
= of relations between Employer and Employee. 5
S The Sun Life Assurance Company of Canada has been entrusted with group S
i contracts by many employers in Montreal and throughout the Dominion, |
= and experience has impressed convincingly both upon our clients and upon |
= ourselves the fact that employees are deeply appreciative of group assurance |
i furnished to them, and are substantially influenced thereby in their attitude |
E towards their employers and their employment. 5
Z We find that the employee's appreciation of the assurance dates as a rule from i
I the time he receives the actual Certificate, bearing his own name and that of a S
I beneficiary of his own choosing. This Certificate visualizes the cash benefits |
= he or his family are to secure. It guarantees in black and white that he shall r
= not suffer penury should disea.se or accident rob him of his earning power |
= while he remains with his present employer. It guarantees also that in event |
= of his death his wife will be provided for in a substantial manner. It shows |
i increasing benefits with continuance of service. 5
1 Thus home influence and his own interest combine towards keeping him m his S
3 present employment. E
i Group assurance benefits are not costly. Premiums generally run from J^ of |
r 1 per cent, to 1 per cent, of annual pay-roll. =
i The Sun Life group contract oflfers the following special advantages; |
§ (1) The broadest policy issued. =
= . (2) The lowest rates procurable. =
= (3) Backing of over §100,000,000.00 of assets. =
i (4) Complete and rapid service throughout Canada. S
i (5) Canadian assurance for Canadian workers. S
i (6) Immediate coverage by Binding Receipt. =
= Firms having not less than fifty employees are eligible for group assurance, E
i and each firm may introduce a scale of benefits adapted to its own require- E
E ments. Medical examination is not required. =
E Uar u'e seud you further information f E
I Sun Life Assurance Company |
I of Canada f
I Head Office - - MONTREAL |
i Branches in all leading centres in the Dominton. E
liiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiimiimimmmiimiimmmimiimiii iimiimmmiimminmiiiiiiimiiiimmiiiiimiiuiimiiim":
190
THE MONETARY TIMES
Volume 66
Public Workmen's Compensation Business Grows
Eight Million Dollars Per Year Handled by Boards in Canada— Mani-
toba Transfers from Individual Liability to Public Operation -Increase
in Scale of Payments in Ontario — Ninety-Five Per Cent. Paid Back
By FRANK W. HINSDALE
Secretary, IJritish Columbia Workmen's Compensation Board
A MARKED increase in industrial activity throughout the
Dominion is indicated in the larger payrolls reported to
the boards administering workmen's compensation acts in thte
several provinces. Each board reports a larger number of
employers and the revival in work of general construction is
particularly noted.
The increase in payroll and in the number of woi'kmen en-
gaged in industry, varying from 10 to 25 per cent, over the
previous year, and to a much larger degree over those reported
in three preceding years, and the unfortunate proportional in-
crease in the number of accidents requiring attention has ma-
terially added to the work of administration. Owing, however,
to the increased efficiency of the several staffs, and in a very
large degree to the hearty co-operation of employers and work-
men and physicians generally in complying with all the require-
ments of the boards, the increased work has been easily han-
dled and the percentage of the cost of administration to the
amount of money collected in assessments has steadily de-
creased. It has also resulted in a material shortsning .if the
time required to get the money into the hands of injured men
after their claims have been filed. For their low costs of ad-
ministration, which averages less than 5 per cent, of the
money handled, and for their speed in handling claims, Cana-
dian boards ha\'e recently been highly complimented by the
investigator of the department of statistics of the bureau of
labor, Washington, D.C., who has made an extensive compara-
tive examination of the work of all such boards.
Cost Only Five Per Cent.
In view of the magnitude of the business handled by the
boards, amounting in Canada to over eight millions of dollars
annually, it is worthy of special note that of every hundrer
dollars paid by the employer over ninety-five dollars is used
directly for the purposes of the very many thousands of men
who have been injured, and to secure payment of the pensions
due the dependents of those who have been killed, without de-
duction of any commission or profits or charges of any kir.d
whatever.
During the year the application of the act has been en-
larged, particularly in Alberta, by legislative enactment, to
include railways, and in British Columbia, by regulation of the
board, to include all deliveries from retail stores, and the list
of industrial diseases within its application have teen slightly
extended.
Scale of Benefits Increased
The scale of benefits has been materially increased in On-
tario, compensation having been raised from 55 per cent, to
66% per cent., and on July 1st pensions to dependent widows
were increased to $40 per month and to children $10 per
month, which are double the pensions provided originally in
the act. The increase in pensions was made to apply from
.July 1st to all such dependents then entitled to pensions as
well as to cases arising after that date.
Pensions to orphan children were raised to $15, as com-
pared with the pension of $10 originally provided, and funeral
expenses were authorized to be paid up to $125, instead of $75,
which was rarely found to be sufficient.
It is to be hoped that an earnest efi'ort on the part of em-
ployers to co-operate with the board in the effort to prevent
accidents through the work of the accident prevention associa-
tions and the safety-first committees and first-aid work in the
individual plants, will so reduce the number of accidents and
prevent their serious development, that the increased benefits
will not result in any material increase in the rates of assess-
ments.
In Manitoba the act has hitherto provided for individual
liability of employers, against which they were required to de-
posit with the board policies issued by some insurance com-
pany, or to give other satisfactory guarantees. Under this
method the rates of insurance were found to be very high as
compared with the rates charged in provinces where the work
is conducted exclusively by boards appointed for the purpose,
and in other respects the law was found to be so unsatisfactory
that, at the request of both the employers and the workmen,
an examination and report was made by experts appointed by
the government. It was found that the difference between
the amounts paid by employei's to the insurance companies
and the amount the companies actually paid injured men
would have been more than sufficient, had the waste been
avoided, to have raised the rate of compensation from 55 per
cent, to 66% per cent., and to have paid dependent widows
$35 per month instead of $20.
The report recommended that the law be amended so that
the intervention of insurance companies be avoided and that
all matters relating to the work be exclusively handled by the
board, thus enabling the rate of compensation to injured men
and their dependents to be raised. A new act was accord-
ingly passed, becoming effective on the 1st of January, 1921,
providing for compensation at 66% per cent, of the wage, with
pension to dependent widows of $30 per month, and $7.50 to
childi-en, except that orphans will receive $15 per month.
Funeral expenses may be paid up to $100. The law, on the
whole, conforms very closely to the act in force in British
Columbia, which is very similar to the acts in Ontario, Nova
Scotia and New Brunswick.
Employing the Disabled
The rehabilitation of workmen who have sustained serious
permanent impairments is a work which claims the most care-
ful attention of every board administering compensation acts.
As under the laws of most of the provinces awards are now
paid without the necessity of suits at law or any appeal to the
courts, which in the past have been productive of much mutual
friction and ill-will between employers and their workmen, a
most gratifying result has followed in the general willingness
of employers whose men have met with serious permanent im-
pairments to find employment for them suitable in view of
their disabilities.
So generally are employers willing to re-employ their
crippled workmen, especially in the case of large employers
and where the workmen have previously been employed for a
considerable time, that the chief difficulties of the problem are
confined to cases where the men have been injured while work-
ing for small employers or in incidental labor. In such cases
it has been found wise to commute a small portion of the
monthly pension due and pay the workmen a few hundred dol-
lars and a pension either for life or a larger pension for a lim-
ited term and advise the injured man that if at a later time he
should find it advisable and safe to engage in some small bus-
iness or occupation with which he was familiar the board
would help him to undertake the work by commuting a further
portion of his pension. It has been found that often after
a number of months a wise choice of occupation has been made,
sometimes on a small acreage or in a business enterprise, and
crippled men so assisted have in a very considerable number
of cases been established in profitable undertakings. In a
number of cases where very young men have been crippled
courses of instruction have been arranged so that they have
been able to undertake work where their physical disabilities
were not so great a handicap. The success of this work has
afforded the greatest satisfaction.
January 7, 1921 THE MONETAKY TIMES
ORGANIZED 1889
THE DOMINION LIFE
Assurance Company
Head Office - WATERLOO, ONT.
NOTED FOR ITS DIVIDENDS TO POLICYHOLDERS
DIRECTORS
Thos. Hilliard. President.
P. H. Sims, Toronto; S. B. Bricker and E. F. Seagram. Waterloo.— Vice Presidents.
David Bean, Waterloo Geo A. Dobbie, Gait W. Vandusen, Toronto
A. J. Andrews, K.C., Winnipeg Geo. D. Forbes, Hespeler F. S. Kumpf. Waterloo
W. T. Parke, M.D., Woodstock W. L. Hilliard, M.D.. Waterloo C. W. Wells, Waterloo
Thos. Bradshaw, F.I.A., Toronto. j. H. Gundy, Toronto
OFFICERS
Thos. Hilliard, President
F. S. Kumpf, Managing Director C T, Necker, M.B., (Tor.), Medical Referee
Fred Halstead, Secretary-Treasurer C. E. Robertson, Superintendent of Agencies
THE WESTERN EMPIRE LIFE
ASSURANCE COMPANY
Head Office: WINNIPEG
The year 1920 was one of substantial progress.
The Company wrote more Insurance and collected more
premiums and interest than in any previous year.
There are a number of good districts available for men
w^ho can produce business.
WM. SMITH, F. C. O'BRIEN,
President and Managing Director. Secretary-Treasurer.
THE MONETARY TIMES
Volume 66
The general method of determining and paying compensa-
tion due on account of permanent partial disabilities in one of
the Canadian boards was referred to in the report of the spe-
cial investigator of the labor bureau in Washington in the fol-
lowing complimentary terms: —
"The British Columbia plan is probably the most nearly
adequate and the nearest approach to a scientific system of
compensating permanent partial disability yet developed in
America."
At the first annual meeting of the Association of Cana-
dian Workmen's Compensation Boards, which was held in Tor-
onto early in October, the various problems arising from the
work of the several boards was discussed and consideration
given to the possibility of arranging, if possible, fof a greater
degree of uniformity in compensation acts throughout the
Dominion.
RIOT, STRIKE, CIVIL COMMOTION AND EXPLOSION
These Lines Now Established in Canada — Changing Economic
Conditions Keep Up Demand lor Protection
By J. E. Proctor
Jones and Proctor Bros., Toronto
UNTIL 1918 this class of insurance received very little con-
sideration from the insuring public in Canada with the
few exceptions of such manufacturing plants that, through
their process, were exposed to the risk of explosion. Such
institutions purchased straight explosion insurance, excluding
the risks of riot, strike and civil commotion. Up to 1918 the
greater volume of this insurance was placed in England with
Lloyds Undenvriters. About that time the stock companies
in the United States and Canada undertook to issue policies
covering these risks and about the same time the undercurrent
of unrest became apparent to close observers.
However, the unrest in labor circles came very much to
the surface the first few months of 1919 and property owners
protected their interests against loss arismg from this source.
The situation in Winnipeg, Toronto and Montreal was more
acute than elsewhere, with the banner perhaps going to Win-
nipeg. Some of the insurance taken out in 1919 has been can-
celled or allowed to lapse, but there is a considerable number
of property owTiers who consider it advisable to carry this
protection until conditions reach a normal basis. The reasons
for taking out this insurance in 1919 are practically the re-
verse of to-day. In 1919 the unrest was caused by demand
for greater earnings by the labor people, aided and abetted by
the socialistic element, who hoped to strengthen the position
with labor. To-day the unrest, if any, is caused by unemploy-
ment and receding wages, which will be aggravated by coming
winter conditions.
Not Covered by Fire Policy
The protection afforded by this form of policy is specifi-
cally excluded from fire insurance policies by the statutory
conditions. Any loss, therefore, resulting from riot, strike,
civil commotion and explosion which would include loss by
fire caused indirectly or directly by such causes would not be
covered under straight fire insurance policies. Prudent prop-
erty owTiers who did not desire to be left in the position of
having their property %viped out or seriously damaged by such
an event should it come to pass, and unable to collect under
their fire insurance policies consequently purchased this pro-
tection.
The rates have never been considered high and to-day are
lower than in 1919. It must be taken into consideration that
this form of insurance cannot be accepted as of a permanent
nature, and in compiling rates underwriters naturally have to
take this into account.
The demand for this class of insurance in the United
States is much greater than in Canada, property owners there
considering it practically as important as fire insurance under
present uncertain conditions.
It might be as well in passing to deal shortly vnth the
situation in regard to marine insurance. Remarks so far
have dealt with insuring fixed properties which are only ex-
posed to such disturbances as arise in the locality In which
the property is located. Riot, strike, civil commotion and ex-
plosion insurance when applied to marine insurance presents
a much different aspect. The moment a consignor delivers
merchandise to the carrier such merchandise goes out of the
control of the consignor and from then until delivered to a
final destination such merchandise is exposed to risks in all
situations and in all countries to and from which the merchan-
dise passes. Such risks are specifically excluded from the
marine insurance contx'acts insuring cargoes and hulls unless
specially arranged otherwise. A number of importers and
exporters in Canada have their marine insurance arranged to
include these risks. Importers and exporters should give this
question earnest consideration, because knowledge of disturb-
ances in foreign countries comes too late to arrange protec-
tion on shipments that have already left the hands of the con-
signor. It is impossible also for a consignee or consignor to
ascertain at what point his merchandise is and consequently
cannot determine if such is subject to any unusual hazard
should disturbances occur. Additional rates to include this
risk under marine insurance are at present low, but of course
vary from time to time, depending on conditions.
It is pointed out that practically all policies covering va-
rious risks contain a riot, strike and civil commotion clause
excluding liability of the insurance company for loss or dam-
age resulting from such clauses.
WEEKLY PREMIUM BUSINESS IMPROVES
Advance of About 50 Per Cent. Compared With 1919— The
Industrial Depression and Its Effects
By J. F. Maine,
' Supervisor, Industrial Agencies, London Life
Insurance Company
THE question is being asked, "What effect is the labor un-
rest and industrial depressions having on the weekly
premium life insurance business?"
We might say history is repeating itself. In the '90's
when industrial conditions in Canada were at their worst,
the weekly premium life insurance companies did the largest
volume of weekly premium business that had been done up
to that time.
Means of Systematic Saving
Since that time the companies have so improved the
privileges and benefits in their weekly premium policy con-
tracts that people of all classes are buying them. Some pur-
chase the weekly premium endovnnent policy for the facilities
it affords for systematic saving. It is in a sense compulsory
saving, thus contributing largely to forcing people, young
people in particular, to form the habit of saving. This policy
is not a pure endowment but a life and endo^vment combined.
It contains many of the privileges of the policies on the
ordinary plans such as cash surrender, loan, paid-up values,
etc.
Feel Need of Insurance
When work is scarce and money tight, the masses of the
people value a small policy more than they do when wages
are high and money plentiful, with the result that an efficient
life insurance salesman can do more business now than he
could during the years of plenty. Herein the history of
the '90's is being repeated. During this year our weekly
premium business has been about 50 per cent, in advance
of the same period last year. We are of the opinion that the
weekly premium life insurance is at least one business that
improves with industrial depression.
Apple shipments from Halifax have been very heavy.
The shipments up to November 14 totalled 320,000 barrels,
principally for the United Kingdom, as against 432,000 bar
rels for the whole of last season.
January 7, 1921 THEMONETARYTIMES 193
A BRITISH COMPANY
Union Insurance Society of Canton, Limited
Head Office: Hong Kong
Fire - Marine - Automobile - Hail Insurance
A Combination of Age, Magnitude and
Experience
Head Office for Canada : : 36 Toronto Street, Toronto
C. R. DRAYTON, Manager for Canada
British Traders Insurance
Company, Limited
Head Office : HONG KONG
Fire - Automobile - Hail Insurance
Head Office for Canada
36 Toronto Street, Toronto, Ont
C. R. DRAYTON, Manager for Canada
194
THE MONETARY TIMES
Volume 66
Automobile Insurance Developments in Canada
Tariff Association Effected Important Changes in Rates and in Methods of Rating — Com-
petition of Non-Tariff Company a Factor — Great Field For Increase in Volume of Business
By FREDERICK WILLIAMS
Manager for Canada, Motor Union Insurance Company, Ltd.
THE year 1920 has been somewhat notable in the automobik'
insurance business. So far as Canada is concerned it is
generally recognized that the field offers considerable possibili-
ties and that only the fringe of the ground has so far been
touched, while tlie methods in vogue for developing this inter-
esting class of business have not been by any means ideal for
securing the most satisfactoi-y results.
The large majority of the companies transacting automo-
bile insurance have operated through the medium of a tariff
organization kno\vn as the Canadian Automobile Underwriters'
Association, the idea being, of course, to stabilize rates of pre-
miums and general conditions of working. 1920 was really
the first year in which united action was secured in combining
the so-called automobile "fire" and automobile "casualty"
tariff associations into one body; although there has continued
to be a definite distinction between the two sections, and there
has also been a failure to secure identical methods of working
throughout the Dominion, local associations in certain parts
being anxious to presei-ve their individuality and to feome ex-
tent follow their own independent judgment.
Rates Were Changed
In the early part of 1920 a new rate book was published
by the tariff combining the fire and casualty sections of the
automobile business, and in other respects aiming at greater
simplicity. The rates in general were a considerable increase
over those in force in the latter part of 1919, although in cer-
tain directions reductions were made. The attempt to stiffen
the rates was, however, not an unqualified success, and in an
effort to preserve harmony amongst the members drastic re-
ductions in the Ontario and Quebec rates were made in the
spring, partly, it may be observed, to endeavor to beat the in-
dependent competition of the "Motor Union" an influence
that company to join the association.
The attitude of the motor union was that the methods of
operation of the tariff were not the most satisfactory, whether
regarded from the point of view of the company, the agent, or
the insuring public; and until reasonable changes were made
the Motor Union preferred to keep outside the association.
With a view to getting things on a mutually acceptable footing
if possible the Tariff Association took the rather unusual but
very commendable course of inviting me to attend their annual
meeting in Ottawa, to express my general opinions.
American Companies Restricted
One of the admitted handicaps of the tariff organization is
that so much has to be done as a concession to the limited
powers of American companies, who form a considerable part
of the association and who are restricted by arbitrary laws in
the United States. Canadian and British companies are not
hampered by these illogical and unnecessary laws and are con-
sequently free to operate on much more advanced lines. The
strength of a chain is always that of its weakest link, and
seeing that the association has had in the past and always
will have in the future to contend with competition on more or
less aggressive and independent lines, it seems a pity that the
companies which have the ability to cope with that competition
should content themselves with dropping back to a lower level
and marching at the same sluggish pace as the companies
which are operating with shackles around their ankles.
It might also be mentioned that there has been too much
of a tendency to lean on the views of the American bureaus,
on the experience of the American companies, on the recom-
mendations of American insurance men. Canada is more than
big enough to stand on its own feet so far as conducting the
business of insurance is concerned, and the Canadian field will
be developed more vigorously and more satisfactorily, not
mei'ely as regards automobile insurance, but in other branches,
when the Canadian managers treat Canada as Canada, not
simply copying America or Great Britain or any other country,
but exercising intelligent initiative; ready to learn from any
other country, ready to co-operate with any other insurance
association, but also able and willing to give other countries
and other associations a lead when occasion arises._^
Possibilities of Business
Facts and figures are not as a rule very interesting read-
ing, but as showing the potentialities of the automobile insur-
ance business in Canada it may be worth making brief refer-
ence to one or two points. The records show that in 1903 the
total number of automobiles registered in Canada was 220.
Ten years later (1913) the total had increased to 50,489. The
next five years brought the total (1918) up to no less than
269,727, while in 1919 the total number of cars and trucks
amounted to 355,433. The 1920 figures will doubtless show a
substantial increase on this last-mentioned total.
The amount of business transacted by the companies re-
porting to the Dominion insurance department may also be
touched upon. In 1910 the total premiums amounted to $80,-
446. In 1915 the total had growTi to .§573,604. In 1919 the
total had increased to $3,425,983. Bearing in mind the num-
ber of companies who have entered the field in the last few
years and having regard to the tendency towards more com-
prehensive coverage and broader limits of indemnity, it can
readily be seen that while it would appear that the business
has gone ahead at a great pace, the companies liave in reality
done little if anything more than maintain a certain relation-
ship with the increase in the number of vehicles o\vned.
Many Owners Not Insured
$3,425,983 premiums on 255,433 automobiles indicates that
a very large number of automobile owners are either carrying
no insurance at all or are content with partial inadequate cov-
erage. With a serious effort to get automobile owners to
carry adequate protection the total premiums secured could be
increased substantially, and with the normal increase in the
number of vehicles owned this department of insurance should
in the future show very much larger figures than those so far
reported.
It might be of interest to mention that out of the total of
$3,425,983, Canadian companies wrote $1,110,237; British com-
panies wrote $1,517,411, and American companies wrote $798,-
335. Some of the American companies are. of course, con-
trolled by British companies, so that the total share actually
secured by British and Canadian interests is far in excess of
the proportion written and retained by purely American con-
cerns. The limitations under which the American companies
operate explain in part their lack of success in this field, and
in any case it is natural and desirable that Canadians should
support Canadian and British institutions.
Some Comments on Blue-Book Figures
In considering the Blue-Book tables from which our pre-
mium figures are taken it must be appreciated that on a rap-
idly increasing premium income such as is shown the "un-
earned premium" factor is a very important item, and unless
due allowance is made for the necessary reserve for unexpired
risks the casual reader is apt to form the opinion that there is
a considerably larger margin of profit on automobile insurance
than is really the case.
The "claims" tables show totals of $1,565,408 paid and
$561,809 outstanding, an aggregate of $2,127,217; but it ap-
pears that the claims actually relating to the 1919 business
January 7, 1921
THE MONETARY TIMES
195
Mount Royal
Assurance Company
Surplus and Reserve .
Total Funds
Total Annual Income
Total Losses Paid
$1,416,740.57
. 1,708,120.67
1,100,284.35
. 3,180,308.63
HEAD OFFICE: 17 ST. JOHN STREET
MONTREAL
Toronto Office 84 King Street East
p. J. PERRIN. General Manager.
H. C. BOURNE. Supt. Weslcrn Dept.
H. H. YORK. Inspector for Ontario.
GENERAL AGENTS
Shaw & BcgR, Limited. Toronto Ont.: C. H. .McPadyen & Co., Ltd..
Winnipeg, Man.: Butler Byeri Bros., Ltd . Saskatoon. Saslt.: J. O.
.Miller Insurance ARcncics. Ltd.. CalRary. Altfl.: Hobson & Co.. Ltd..
Vancouver, B.C.; Duck &' Johnston, Victoria. BC: Central ARencies.
Ltd.. Truro, N.S.: Machum & Foster, St. John. N.B.
Applications for Atjencies in Unrepresented Districts Invited.
A Splendid Opportunity.
TheUominion lusuiance Department was nevermore
efficieutU' aiiH more drastically administered than under
G. D. Fiiilayson. Young companies complying in
every particular with the Insurance .A.ct are in an un-
questionable financial position, and are much stronger
than older companies were at the same period of
their age. .
According to the report of the Dominion Superin-
tendent of Insurance (The Blue Book), for the year
ending 1919, the assets of The Commercial L,ife Assur-
ance Company of Canada are 1316 to $100 of liabilities,
while the assets of all other Canadian companies
averaged are SI 16 to SlOO of liabilities.
The remunerative positions of influence with this Company are
not already mortgaged in ad\-ance and are available to reliable and
progressive men associating themselves with the Company to-day.
Head Office - EDMONTON, CANADA
"Business Insurance"
is one of the nmst significant developments of modern protection.
Large firms are increasingly di.sposed to protect themselves against
loss caused by the death of important members.
These large risks are placed with the utmost care. No weak
feature could pass muster. The fact that The Great-West Life
.so frequently .secures this type of business is a high endorsement
in itself.
Ask for rates and printed matter.
The Great-West Life Assurance Company
(Dept. " F."j
HEAD OFFICE, WINNIPEG
THE MONETARY TIMES
totalled .$1,806,917. Bearing in mind the necessary increase
in the reserves for unexpired risks, it appears fairly obvious
that, taken as a whole, the companies are making very little, if
any, actual profit on this business. This point of reserves for
anexpircd risks in the automobile business docs not appear to
be tabulated in the Blue Book in the same carefully-presented
way as is done for general fire insurance.
As regards the claims paid it may be worth noting that
the Canadian companies reported a total of .$493,087; the Brit-
ish companies paid $684,047; while the American companies
paid $388,274. As compared with the premiums written it
will be seen that, taken as a whole, the British companies ap-
pear to have the most favorable results.
The figures quoted are for companies operating under
Dominion licenses. A certain amount of business is also done
by companies operating solely under provincial licenses, but
the figures are of small amount.
New Bases for Rating
The year 1920 will remain on record in Canada as the
period in which various interesting changes were made in the
general practice. In place of the rating of the third-party
risks according to horse-power, the tariff companies changed
over to the method of the "Motor Union" and instituted a
schedule based on the list price. This is not a scientific basis,
but there are certain arguments in its favor pending the set-
tlement of an accurate and logical system. There are so many
factors entering into the problem, however, that it is very
doubtful if all points can be taken care of by a simple straight-
forward schedule.
The tariff also adopted a new rating system for fire and
theft risks, this being based on the views of the American
bureaus. Under the new schedule cars are specifically classi-
fied and rated on a "merit" system. This is a considerable
improvement on the "list-price" basis previously in force,
which gave very illogical results.
The "valued" form of fire policy also came under consid-
eration at the latter end of the year, and it is understood that
it has been decided to abandon this form of policy, to which
certain legitimate objections can be raised. It is a survival of
the practice of the marine under\^Titers who entered the auto-
mobile field in the early days and rather unwisely applied
marine methods to the new branch, where the same conditions
obviously do not apply. Reference might incidentally be made
to the point that prior to the decision to abandon the valued
form the practice was to charge a flat additional 25 cents per
cent, on the insured value for the "valued" covering. No mat-
ter whether the basis rate was 50 cents, $1.00, $2.00, $3.00 or
$4.00, etc., the additional charge was 25 cents. In other words,
the more hazardous the risks the less the proportionate addi-
tional, which was obviously illogical.
Ruling About Fire Damage
During the year the question came up for consideration of
the liability under the property damage heading (third-party
risk) in the case of fire arising out of damage caused to other
people's property by the insured automobile. The Dominion
department of insurance (Ottawa) communicated its opinion
that such a hazard came within the scope of ordinary fire in-
surance, with the consequence that a company not licensed to
transact general fire business "cannot undertake liability for
such loss by fire arising from an accident." It is very respect-
fully submitted that this ruling will not bear strict scrutiny —
that is, regarding the matter purely from the point of view of
general insurance practice. A company not licensed to trans-
act general fire business can vei-y properly be barred from
writing fire insurance on specific property; e.g.. it could be
prohibited from covering the fire risk on the insured automo-
bile. But when the company is licensed to issue contracts
of indemnity against third-party risks (i. e., claims by the pub-
lic), it ought to be free to give the widest possible indemnity.
It would prima facie be absurd to suggest that companies li-
censed for liability insurance be prohibited from covering per-
sonal injuries to the public arising out of fire or explosion;
and yet it is just as illogical to say that such companies must
restrict their liability for damage caused to the property of
third parties by excluding possible damage to such general
and unspecified pi'operty caused by fire arising out of the orig-
inal accident. Possibly the anomaly and slight inconvenience
caused by the ruling in question will be remedied when further
consideration has been given to the matter.
FIRE PREVENTION WORK IN ONTARIO
Province a Leader in This Work — Results as Shown by Fire
Losses and Insurance Carried
By E. P. HEATON, Ontario Fire Marshal
WE R.re, we think, justified in saying that Ontario has taken
a rather more advanced position in the matter of fire
prevention than any other Canadian province, and indeed some
of our United States friends have been good enough to say
that we have set the pace for the whole continent. Be that
as it may, it is true that the active propaganda started by the
Ontario Fire Prevention League in 1919, as particularized in
The Monetary Times Annual for 1920 (p. 200), has been car-
ried on during the year 1920 much more intensively and with
good success.
After mature consideration we came to the conclusion that
our work for 1920 could not follow any better lines of propa-
ganda than was adopted in 1919. We thought then we were
working to the best advantage witli the money at our disposal,
and having been able to materially increase our appropriation
we have simply followed the old lines in an intensified degree
and, we believe, with correspondingly happy results.
The hope of the future unquestionably is in the develop-
ment of "carefulness" in the consciousness of the rising gen-
eration and we have therefore endeavored during the year to
get in touch with Boy Scouts, Girl Guides, pupils of all grades
of schools, and the home. The pamphlets issued and circu-
lated have numbered more than half a million, and perhaps
the most effective woi-k has resulted from the distribution of
2,000 medals for prize essays. Correspondence from all over
the province indicates that the preparation of essays has been
general, that "home" discussions have preceded and followed
their preparation, and that in this way thought has been
aroused and influences brought to bear which must have an
abiding and far-reaching effect.
We are still seeking to develop municipal action in respect
of fire prevention. Last year I indicated a number of cities
in which the fire department organizations had rendered active
co-operation; in all the places then named the work has con-
tinued with very commendable zeal and activity, and this year
the outstanding gratifying feature is the remarkable way in
which the smaller towns and villages have risen to the occa-
sion— and particularly where, as in many instances I could
recite, the whole work has been performed by and under the
activity of volunteers.
Does it Pay?
In spite of the phenomenal increase in buildings and of
the tremendous rise in values at risk all over the province,
the first ten months' fire record in Ontario compared with the
corresponding period of 1919 (the most favorable year Ontario
ever had) is evidence enough that some influence for good is
at work. The record is as follows: —
1919 1920
Number of fires __ 7,823 7,812
Aggregate loss $8,777,730 $9,269,046
Insurance loss 5,768,707 6,647,019
Uninsured loss 3,009,023 2,622,027
No one can control the spread of a fire, and at any moment
oile may occur of such magnitude as to beggar all comparison
in respect to the aggregate loss, nevertheless the number of
fires occurring is more or less controllable, and the commenda-
ble feature of this return is found in the first item. Happily
the second and third items are also such as to call forth a
measure of thankfulness and hope that 1920 may also rank as
a favorable year.
I do not want in this brief article to go into detail, but I
would like to refer those interested to an article written for
the November number of "The Contract Record" for a more
specific answer to the question, "Does it Pay?"
January 7, 1921 THEMONETARYTIMES 197
THE WEST IS CALLING YOU
Great opportunities in the field with
the live and progressive
THE WESTERN LIFE
ASSURANCE COMPANY
Head Office,
WINNIPEG, - MANITOBA
For details of openings in our agency force, communicate with
ADAM REID, - - - Managing Director
THE EMPLOYERS'
LIABILITY ASSURANCE
CORPORATION LIMITED
of LONDON, ENG.
PERSONAL ACCIDENT SICKNESS EMPLOYERS' LIABILITY
WORKMEN'S COMPENSATION AUTOMOBILE BURGLARY
FIRE FIDELITY GUARANTEE CONTRACT BONDS
COURT BONDS BOILER
Everything but Life Insurance
C. W. I. WOODLAND
General Manager for Canada and Newfoundland
Temple Building Lewis Building
TORONTO MONTREAL
THE MONETARY TIMES
n
Fire Insurance Cases Reach Highest Courts
Quebec Light, Heat and Power Appeal Decided By Privy Council — Insurance
Company Not Liable When Property Transferred, Contrary to Statutory Provisions.
AMONG the numerous cases on fire insurance which have
reached the higher courts in this country during the past
year, the most important is that relating to the Quebec Light,
Heat and Power Company. This was decided by tlie Privy
Council to the effect that if fire insurance companies advise
improvements for purposes of safety and fire prevention, it is
the duty of electric power supplying companies to instal these
suggested improvements.
Quebec Light and Power Case
The case originally began in 1912, when after numerous
fires in Quebec City, the insurance companies interested ap-
pointed an investigator, who found that many of the fires were
caused by improper conducting apparatus, and who recom-
mended that conditions be improved by grounding all trans-
formers at their neutral point, which promised to be the only
remedy available to the operating company. Until the fire in
the present case, no steps were taken by the operating com-
pany to follow the advice given.
In the present case the judge of the Superior Court of
Quebec found the Quebec Light, Heat and Power Company
responsible and they were ordered to pay $60,000, plus interest
and costs. This decision was appealed to the Court of King's
Bench and the Quebec Light, Heat and Power Company was
found not responsible. The insurance company then appealed
to the Supreme Court of Canada, which reaffirmed the deci-
sion of the Superior Court, and the Quebec Light, Heat and
Power Company was again found responsible for the fires by
a majority of one.
But permission was given to the respondents (the Quebec
Company) to appeal to the Privy Council, which decided that
the Quebec Light, Heat and Power Company was responsible
for the fires in that it had not attempted to relieve itself of
responsibility by following the advice of the insurance com-
panies.
Privy Council's Decision
The facts of the case and the pertinent parts of their
Lordships' decision are as follows: —
"The appellant company generates and distributes elec-
tricity in the City of Quebec and its neighborhood and along
the St. Toye Road the company had erected poles carrying
two overhead cables, a primary cable charged with electricity
at 2200 volts, and a secondary cable from which electricity
was supplied to the houses at 108 volts. There were many
trees along the roadside and in the adjacent enclosures, and
at the time in question a violent wind had torn a branch
coated with frozen rain from a poplar growing some distance
from one of the enclosures and had driven it against these
cables, though many feet away. They broke down in conse-
quence and thus the high-tension electricity found its way
along the secondary cable into the customers' houses and set
them on fire. For the loss thus caused the present action was
brought against the appellant company.
"The powers under which the appellant company carries
on. its undertaking are statutory and are contained some in
private and some in public statutes. The powers which these
statutes give are of a very familiar type. The undertakers
are authorized to carry and distribute high-tension electricity
over cables which may be either overhead or underground,
and one section expressly provides that the company may
erect, equip and maintain poles in the streets for the purpose
of working and maintaining its lines for the conveyance of
electric power, upon, along, across, over and under the same.
It was contended by the respondents (the insurance com-
panies) that subsection (e) of this section, by the words 'the
company shall be responsible for all damage which its agents,
servants or workmen cause to individuals or property in car-
rying out or maintaining any of its said works,' made the
company absolutely liable for the damage sued for in the
present case. Their Lordships think that, as an independent
cause of action, this case fails. The damage here is not, in
any view of the construction of the subsection, caused in car-
rying out or maintaining works.
Company's Rights Not Absolute
"The appellants, however, rely on the authority to carry
their wires overhead which the statutes give. The applica-
tion of enactments of this kind is familiar and well settled.
Such powers are not in themselves charters to commit torts
and to damage third persons at large, but that which is neces-
sarily incidental to the exercise of the statutory authority is
held to have been authorized by implication and therefore it
is not the foundation of a cause of action in favour of strang-
ers, since otherwise the application of the general law would
defeat the purpose of the enactment. The legislature, which
could have excepted the application of the general law in ex-
press terms, must be deemed to have done so by implication
in such cases. Nor need a use of the power conferred, which
is injurious to others, be excluded from the ambit of that
which is necessarily incidental to their enjoyment merely be-
cause the progress of discovery or invention reveals some ex-
traordinary means of preventing that injury to others which
has previously been unavoidable. This point arose and was
settled in connection with sparks falling from locomotive
engines many years ago. It therefore becomes necessary
to consider how far such an escape of electricity as took place
in this case was incidental to the use of overhead cables and
how far and by what reasonable precautions injurious conse-
quences were preventable.
The Transmission Lines
"The question whether it was necessary to hang the two
sets of cables on the same poles or in such proximity to one
another that the fall of the branch upon one would lead to
the flow of the high-tension current into the other, hardly
seems to have been examined at the trial. The main conten-
tion is this: That if the wires of the transformers, which are
used at intervals along the line of cable, had been grounded,
the escaping high-tension electricity would have found its way
innocuously to earth instead of entering the houses and
setting them on fire. The value of this precaution has been
established by the experience of several years, but it was the
view of some distributors of electricity and of the defendant
company among them, that there was an oft'set to this advan-
tage in the fact that, if the wiring of the customers' houses
was defective, the grounding of the transformer wires would
substitute new difficulties for the old. It was not, however,
shown that the wiring of the plaintiffs' houses was defective
to this extent, although it was 'demode,' nor did the evidence
compare the one disadvantage with the other quantitatively.
The company could have inspected the wiring and, if it was
not safe, could have declined to supply current. It is plain
that the company was quite willing to have carried out the
grounding of the transformer wires, if the representative of
the fire insurance companies, who advised this course, had
given an instruction instead of a recommendation. The lat-
ter naturally pointed out that they had no authority to issue
instructions, but must confine themselves to advice, and as
their Lordships are neither prepared to assume that this re-
quest on appellants' part for instructions was a mere quibble,
designed to disguise their own reluctance to do anything, nor
even to infer tliat they saw any objection to the proposal ex-
cept the expense of it, they conclude that the grounding of the
wires of the transformers would, some substantial time before
the accident in question, have been a practicable and efficient
safeguard against the injury which in fact was inflicted. If
so, it is impossible to say that the escape of electricity into
customers' houses and the consequent damage in time of
Januarj' 7, 1921 THEMONETARYTIMES 199
Our National Status
The growth of the Manufacturers Life Insurance Company has been commen-
surate with the expansion of this great country of ours.
The Annual Report for the Year 1920 — the Thirty-Fourth Annual Report of
the Company — will not only show another banner year for new business, but
will also show a greater production than the total business written by all
Canadian Companies two decades ago.
That we stand high in the estimation of the insuring public is indicated by our
record. Such progress would not have been possible had we not rendered
service to an ever-growing body of Policyholders. " Once a Policyholder,
always a Policyholder," is our motto, and three generations of Canadians are
to-day carrying their insurance with The Manufacturers Life. Our Policies
are as liberal as is compatible with safety. Full particulars of our Guaranteed
Plans gladly furnished.
The Manufacturers Life
Insurance Company
Head Office : : Toronto, Canada
Canada Security Assurance
Company
fCuaranleed bv Norii>ich Union Fire Insurance Sociel^ Limilcdj
Fire Hail Automobile
Available Assets $125,000,000
Service Strength Satisfaction
IVestern Offices :
CALGARY, ALBERTA MOOSE JAW, SASK. WINNIPEG, MAN.
T. B. REDDING. Manager. E. M. WHITLEY Manager.
200
THE MONETARY TIMES
Volume 66
storm was a necessary incident of the exercise of the power
to distribute high-tension current by overhead cables along
roads, such as would by implication relieve the company from
liability for the consequences."
"Tlieir Lordships will humbly advise His Majesty that this
appeal should be dismissed with costs."
Staddon vs. Liverpool-Manitoba Assurance Co.
Another case of interest to fire insurance companies was
that of Staddon vs. Liverpool-Manitoba Assurance Company,
in which the Supreme Court of Ontario decided that a fire in-
surance company was not liable under a policy on property
which had been transferred without its consent, where such
assent is required by the statutory conditions. The facts
were that the company insured John Griffin for three years to
the amount of $800 against loss or damage by fire on a frame
dwelling belonging to Griffin. After the issue of the policy,
Griffin sold and conveyed the lands and building to a realty
company, which reconveyed the same by mortgage to Griffin
to secure payment of $850, part of the .purchase price. There-
after the realty company sold and conveyed its equity of re-
demption in the lands to one Sova, who later sold and con-
veyed the same to one Pulford. To none of these conveyances
did the company give its written permission. Some time later
Griffin assigned to Pulford, the then owner of the equity of
redemption, the policy of insui'ance and all benefits thereun-
der by an assignment in writing endorsed on the policy, and
beneath this assignment the company by its agent consented
to such assignment by an endorsement on the policy. Subse-
quently Pulford conveyed the lands subject to GrifRn's mort-
gage, to Thomas and W. Affleck, and they conveyed the same
to Staddon, the plaintiff. The written consent of the insur-
ance company was not given to either of the two last-men-
tioned conveyances.
During the year the building was totally destroyed by
fire and the company refused payment of the loss, on the third
statutory condition, which is: "If the property insured is as-
signed without a written permission endorsed thereon by an
agent of the company duly authorized for such purpose, the
policy shall thereby become void; but this condition does not
apply to change of title by succession or by operation of the
law or by reason of death."
Insurance Company Not Liable
His Lordship, in deciding that the insurance company was
not liable under the policy, said in part: —
"It is unnecessary to determine whether, in view of the
consent given by the company to the assignment of the policy
by Griffin to Pulford, the company's liability ceased upon the
conveyance of the assured premises by Griffin to the Caskey-
Kamer Realty Co. But for the subsequent assignment of the
policy and the consent thereto of the company, the convey-
ance of the insured premises to the Caskey-Kamer Realty
Co. terminated the insurance contract created by the policy.
The view most favorable to the plaintiff is that the effect of
the subsequent assignment of the policy and the company's
consent thereto was to create an insurance contract with
Pulford as the assured, with loss payable to Griffin as his
interest might appear.
"With this as a starting point, the question is: What was
the effect of the subsequent conveyance of the lands by Pul-
ford to Thomas and W. Affleck subject to the mortgage to
Griffin? By this conveyance Pulford denuded himself of all
interest in the insured building. The company's contract was
to the effect that the assured, to the extent of $800, should
suffer no loss or damage; that is, the company would indem-
nify him in respect of loss or damage by fire to his building
to the extent of $800. Having prior to the fire parted with
all interest in the building, he suffered no loss or damage
by its destruction, and therefore has no claim for indemnity;
and is not entitled to maintain this action. Nor does the
plaintiff stand in any better position than the assured. By
the terms of the company's assent to the assignment of the
policy to Pulford, with loss payable to Griffin, the latter be-
came entitled simply to intercept for his own benefit moneys
otherwise recoverable by Pulford; and, inasmuch as Pulford,
having sustained no loss, cannot recover, neither can Griffin,
whose title is derived from Pulford, nor can the plaintiff,
whose title is derived from Griffin. For these reasons, I think
this appeal should be dismissed with costs."
Fire Insurance Company's Claim Upheld
A case of great interest to fire insurance companies has
recently been decided by the Privy Council. The case was
that of Curtiss & Harvey, Ltd., vs. North British Mercantile
Insurance Co., Ltd., which arose as the outcome of the explo-
sion which wrecked the company claimant's plant near
Rigaud on August 18, 1917, and as twenty-six other insur-
ance companies are affected the decision is obviously of wide
importance. The facts of the case are: —
The appellants are manufacturers of explosives and are
the owners of works in which such explosives are made, and
in particular they were engaged in the manufacture of tri-
nitro-toluol. They wished to insuie their works against fire,
and through their brokers they sent to the respondents, the
North British and Mercantile Insurance Co., a slip on which
was typewritten their requirements for insui-ance. These
consisted of a specification of the various buildings they
wished to be insured, with the addition of terms on which
they wished the insurance to be granted. Upon this the
respondents issued a policy. On the back of the form are
the printed statutory conditions which, according to the law
of Quebec, must be printed on every policy.
A fire took place in one of the buildings insured in which
there was a nitrator, which was a machine employed in one
of the stores for the manufacture of T.N.T. The fire extend-
ed to an adjoining building in which there was some T.N.T.
Ten minutes afterwards an explosion occurred, and in the end
practically the whole of the insured buildings were — whether
by explosion or fire — totally destroyed.
The appellants sue upon the policy for the whole amount.
The respondents admit their liability for damage by fire, but
contend that they are not liable for damage attributable to
explosion, and aver that the greater part of the damage was
in fact so caused.
The chief question arose in respect of the interpretation
and more particularly the applicability of statutory condition
No. 11 of R.S.Q. 1909, art. 7034, "(11) The company shall
make good loss caused by the explosion of gas in a building
not forming part of the gasworks, and all other loss caused
by any explosion causing a fire and all loss caused by light-
ning, even if it does not set fire," to a warranty in the policy
in the following terms, "Warranted free of claim for lo.ss or
damage caused by explos'on of any of the material used on
the premises."
In brief, their lordships decided that statutory condition
No. 11 of art. 7034, R.S.Q. 1909, only deals with the case >if
an explosion originating a fire and not with an explosion inci-
dental to a fire, and where loss is caused partly by fire and
partly by explosion a policy expressed to be against fire, and
containing the following clause, "Warranted free of claim for
loss or damages caused by explosion of any of the material
used on the premises," the clause being properly authenticated
as required by article 7036 of the statutes, should be given
effect to, and an enquiry directed to enquire into the question
of what damages are due respectively to fire and explosion.
FIRE INVESTIGATIONS IN MANITOBA
Pyromaniacs are exacting an annual toll of thousands
of dollars from property owners in Manitoba, according to
Alexander Inch, Deputy Provincial Fire Commissioner. Dur-
ing the first eight months of 1920 reports were received
of 150 suspicious fires in Manitoba, with more than 40 of
these fires established as being of incendiary origin. The
loss through incendiary and suspicious fires had already
amounted to $327,880, the commissioner stated, and not one
individual has been brought to justice.
Lack of machinery to carry out proper investigations
encourages firebugs, and Commissioner Inch will recommend
that the Fire Prevention Branch be placed under the Law
Enforcement Department.
January 7, 1921
THE MONETARY TIMES
201
ESTABLISHED 1899
THE NATIONAL LIFE
Assurance Company of Canada
Head Office - Toronto
BACK OF EVERY POLICY CONTRACT ASSURING EACH NATIONAL
LIFE POLICYHOLDER THE LARGEST POSSIBLE MEASURE OF SERVICE,
SAFETY AND SAVING, TOWERS THE STRENGTH AND SECURITY OF
THE COMPANY, AS ATTESTED BY MORE THAN TWO DECADES OF
CONSPICUOUS SUCCESS.
"PERMANENT AS THE PYRAMIDS"
THE n;^"^
'^
IS A
GOOD COMPANY
TO INSURE WITH
Head Office, London, Ont.
The Imperial
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IMPERIAL PROTECTION POLICIES
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WE PROTECT YOU AGAINST LOSS
BRANCH OFFICES:
Montreal: Winnipeg: Caloarv:
Canada Life BIdg. Union Trust Bldg. Canada Life BIdg.
Vancouver: Cramer & Co. Ltd.
Head Office
20 Victoria Street - - TORONTO
THE MONETARY TIMES
Volume 66
Recent Changes in Life Insurance Legislation
Summary of Provincial Legislation of the Past Three Years— British
Columbia Amends Law Regarding Minors— Beneficiary Law in Manitoba-
Other Amendments Important Changes in Taxation of Life Insurance
By WILLIAM B. TAYLOR, B.A., LL.B.
Secretary, North American Life Assurance Company, Toronto
THERE has been some new provincial legislation during the
past three years in some of the provinces of Canada
which affects life insurance contracts, and it is the object of
this article to refer to some of these amendments as affect-
ing more generally the interest of the insured and the bene-
ficiary. The matter has been referred to under the heading
of each province and the changes do not require any com-
ment. There is also a reference made to taxation in the
different provinces as now imposed upon life insurance com-
panies, and the amount of the tax and the legislative basis
for the same is given under each province.
Alberta
Service in connection with any suit or proceeding is now
to be made upon an attorney resident in the province duly ap-
pointed by the company, in addition to any other mode of
valid service upon the company.
British Columbia
An amendment was made April 23rd, 1918, permitting
payment of the share of infants in a life policy to the guar-
dian of the infants within the meaning of the "Equal Guar-
dianship of Infants Act," or to the executors of the last will
and testament of the insured or to a guardian of the infants
duly appointed by the Supreme Court or by the County Court
or to a trustee appointed by the court upon the application of
the wife or of the infants or their guardian, and said pay-
ments shall be a good discharge to the company.
A minor over the age of 16 years may effect insurance
now like an adult and no insurance effected by a parent on the
life of his child shall be invalid by reason only of the want
of pecuniary interest in the child's life. No insurance is to
be effected on a child's life until it is at least one year old.
Where the insurance is effected on the life of a child under
ten years of age the insurance moneys payable at the matur-
ity of the policy shall not exceed the following amounts: —
$32.00 if under 2 years $83.00 if under 6 years
$40.00 if under 3 years $120.00 if under 7 years
$48.00 if under 4 years $160.00 if under 8 years
$56.00 if under 5 years $200.00 if under 9 years
$260.00 if under 10 years
If a company enters into a contract on the life of a child
under 10 years of age and the insurance money payable there-
under exceeds the amount fixed as above, the premiums paid
may be recovered from the insurer by the person making the
payments, together with compound interest at 7 per cent, per
annum. The above restrictions do not apply in a case where
there is a pecuniary interest in the life of a child or where
the amount payable on death is limited to the premiums paid
with interest. " A provision also is made that these restric-
tions in regard to child insurance must be printed in conspic-
uous type on evei-y contract, circular, application, etc., other-
wise a penalty of $200.00 is imposed.
Manitoba
On March 6, 1918, the act was amended releasing the
company who had bona fide made a payment of insurance
funds to the person who would appear to be entitled to the
payment where actual notice on the part of the company that
the assured had revoked the benefit or interest of such person
had not been received by the company.
On March 27, 1920, there was an amendment which
changed the privilege of the insured in this province to revoke
the interest of any beneficiary, which power existed before
this amendment. The power of revocation of the insured in
Manitoba does not now extend in any case where a policy
effected on the life of a man or woman is for the benefit of
his wife or her husband or his wife and children or her hus-
band and children or his or her children or any of them.
Such class therefore constitutes the class of prefeiTed bene-
ficiaries and the retroactive power has been revoked in regard
to this new class. This amendment is retroactive and affects
all contracts, but not payments which have been made by
companies in accordance with revocations made before the
date of this amendment.
Saskatchewan
On the 1st of May, 1919, an amendment was made enact-
ing that if a company disputes a claim it shall give notice in
writing to the claimant and to the superintendent of insurance
within sixty days.
No contract of insurance shall be issued or delivered in
this province by an insurance company until a copy of the
form of contract has been mailed to and approved by the
superintendent.
Every company licensed under the act must stamp upon
its policy and interim receipt the words, "Licensed under the
Saskatchewan Insurance Act."
Quebec — No legislation.
New Brunswick — No legislation.
Nova Scotia
Under the Probate Act as amended in 1918 a duplicate of
any probate or letters of administration or a copy of exempli-
fication thereof under the seal of the court granting the same
shall have the same effect as the original.
By an amendment passed on the 26th of April, 1916, it is
provided that if one or more of the designated or ascertained
preferred beneficiaries, whether an appointment has been made
or not, die in the lifetime of the assured, the assured may by
an instrument in WTiting attached to or endorsed on or refer-
ring to and identifying the policy of insurance by number or
otherwise, declare that the share or shares of the person or
persons so dying shall be for the benefit of the assured or his
estate or person or persons named or ascertained by him in
that behalf, whether or not the person or persons so named
or ascertained belong to the pi'ef erred class of beneficiaries;
and in default of any such declaration the share or shares of
the person or persons so dying shall be for the benefit of the
survivors (in equal shares) of the said designated or ascer-
tained preferred beneficiaries; or if there is no such survivor
the insurance shall be for the benefit in equal shares of the
children of the assured, and if no surviving children of the
assured, then the insurance shall form part of the estate of
the assured.
Prince Edward Island — No legislation.
Newfoundland
By an act passed June 5th, 1919. discrimination in favor
of any in the same class and equal e.xpectation of life in the
amount of premiums charged or dividends payable under the
policy is not allowed. The companies are required to deposit
with the minister of finance and customs a copy of their estab-
lished rates for all kinds of insurance. No estimate, illus-
tration or statement of the dividends or shares of sui-plus ex-
pected to be received in respect of any policy issued by any
company is allowed.
TAXATION
In connection with taxation on life insurance companies
in Canada the tax rate is usually based upon a percentage of
the premium income after deducting the premiums returned
January 7, 1921
THE MONETARY TIMES
Merchants Casualty Co.
Head Office : Winnipeg, Man.
The most progressive company in Canada. Operating
under the supervision of the Dominion and Provincial
Insurance Departments. Embracing the entire Dominion
of Canada.
Salesmen Note
Our accident and health policy provides most liberal pro-
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PAYS LIFE INDEMNITY if di.abUd
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Pays for Accidental Death. Quarantine, Operations,
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Authorized Capital
Subscribed Capital
Paid-Up Capital .
$1,000,000.00
300,500.00
. 195,325.00
5 Years' Record: Policy Holders' Surplus
31st December, 1915 $170,474.86
31st Decetnber. 1916 . 204.030.45
31st December. 1917 233,715.84
31st December, 1918 . . 270,439.33
31st December, 1919 294,609.33
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THE MONETARY TIMES
Volume 66
during the year to the policy-holders, cash dividends, and pre-
miums paid for reinsurance to other companies, if operating
in the province; otherwise the company reinsured is required
to hold such tax and pay to the provincial treasurer.
Ontario
The Corporation Tax Act, chap. 27, R.S.O., 1914. Amend-
ed by the Corporation Tax Act. 1915, and the Corporation Tax
Act," 1920. By the amendment in 1920 every life insurance
company pays a tax of l^i per cent, on all gross premiums,
less cash dividends and reinsurance premiums paid. Where
the reinsuring company does not transact business in Ontario
the company reinsured must deduct and pay the tax on the
reinsurance premiums in such case. The tax is payable to
the provincial treasurer. Taxes are due on the 1st of Janu-
ary, but shall not be payable until the 1st of October, and are
based upon the premiums received during the previous year.
The company must file a statement with the provincial treas-
urer of premiums received before the 1st of June each year.
Manitoba
Corporation Tax Act, R.S.M., chap. 191, 1913. Amend-
ment chap. 18, 1919. Tax on premiums is 2 per cent. State-
ment is to be filed and taxes paid before April 1st annually.
Fees of ,$205.00.
Saskatchewan
Corporation Tax Act, 1913, chap. 21; Corporation Tax
Act, 1919. Tax on premiums is graded, 1 per cent, up to
$50,000, 1% per cent, fjrom $50,000 to $100,000, IVa per cent,
from $100,000 to $150,000, 1% per cent, from $150,000 to
$200,000, 2 per cent, on $200,000 or more. There is a tax on
revenue from investments within the province of 40 cents per
thousand. Statement of premiums is to be filed before the
1st of May. Taxes are payable before the 1st of July annu-
ally.
Alberta
Corporation Tax Act, 1907, and amendment, 1908. Tax
on premiums is 1 per cent, on gross premiums and % per cent,
on income from investments within the province. Return is
to be filed and taxes paid before the 1st of July. The annual
license fee is $300.00.
British Columbia
Taxation Act, R.S.B.C, 1911, chap. 222; 1913, chap. 71.
Tax on premiums is 1 per cent., with ajlowance of 10 per cent,
discount if paid before the 30th of June annually, and surtax
of 1 per cent, on premiums, less 10 per cent, discount if paid
promptly. License fee is $5.00.
Quebec
6 Ed. VII., chap. 10. 1% per cent, tax on premiums.
Statement is to be filed before the 1st of May and taxes paid
before the 1st of July.
New Brunswick
Consolidated Statute of 1903, chap. 18. Corporation Tax
Act, 1920. iy2 per cent, on premiums and $100.00 annually.
Nova Scotia
Supplementary Revenue Act, 1912. Supplementary Rev-
enue Act, 1919. 2 per cent, on premiums, with minimum
charge of $100.00, payable before the 1st of June.
Prince Edward Island
Taxation Act, 1920. $300, payable half-yearly, 1st of
June and 1st of December.
Newfoundland
Life Insurance Companies Act, Edward VII., chap. 4. A
tax of 1/10 of 1 per cent, of the reserve on insurance in force
in the colony, and a fee of $225.00 annually, is payable to the
provincial secretary, payable semi-annually on the 1st of
June and December.
The Life Underwriters' Association is developing the
two-day educational congress idea, and the president, Mr.
0. B. Shortly, Toronto, accompanied by the general secretai-y,
■ire visiting all of the 44 branch organizations on an educa-
tional and propaganda mission.
LIFE UNDERWRITERS' ASSOCIATION ACTIVE
Work of Year Deals With Legislation, Education and Field
Work — Record of Five Years' Growth
By J. H. CASTLE GRAHAM
General Secretary, Life Underwriters' Association of Canada
RAPID and enormous as has been the growth of life insur-
ance during the past few years, the Life Underwriters'
Association has been more than keeping pace. Since the
association established permanent headquarters five years ago
it has increased in number of local associations from 23 to 46
and in membership by over 300 per cent. It has also seen the
"Life Underwriters' News" developed from an eight-page
pamphlet of small size to a 32-page journal of popular maga-
zine size and is declared by many to be among the very best
publications on the continent devoted to life insurance and
salesmanship.
The work along legislative lines, publicity and education
has been greatly strengthened and extended. This last year
has seen the inauguration of several new educational features
for the benefit of the members of the organization and for life
insurance men in general, enabling the association to round
out a complete circle of service.
Everything for Fieldmen
There is nothing necessary to the development of the life
insurance man that the association does not offer. We have
been able to secure the sole rights for Canada of the Indian-
apolis Research and Review Service; also a salesmanship
course with a personal service which has produced remarkable
results, so much so that the association now undei-writes the
success of every man who enrolls in the course. It also is able
to offer through its headquarters the best books that have been
written on the subject of life insurance and salesmanship,
whether published in Canada or the United States, together
with such "helps" as insurance men find useful in their solici-
tation of business. Besides this, of course, are the features
offered through the local associations, annual convention, and
the "Life L^nderwriters' News." We cannot help but feel that
this will do much to raise the status of the agent to the benefit
of the institution and the public whom they serve.
Important Changes in Laws
In legislation the association has also seen many import-
ant and far-reaching developments, this year being a very
active one, as Mr. John A. Tory, chairman of the committee
on legislation, can well attest. One very gratifying thing was
to see the rate of taxation of life insurance premiums reduced
in the province of Ontario from 1% to 1^ per cent. The tax-
ing of life insurance is the taxing of thrift and virtually penal-
izes the man who proWdes for the support of his dependents
to fre'e the state from the obligation of caring for them.
The year has also seen the Ontario insurance department
reorganized with V. Evan Gray, B.A., LL.B., as superintendent
of insurance, and Dr. Frank Sanderson as consulting actuary.
Mr. Gray has already done many things which the associa-
tion has been striving to have done for considerable time. He
has instituted a new application for "certificate of authority"
from which he is able to get a mental picture of the applicant.
By this method it is possible to weed out all those who are not
fit persons to become representatives of life insurance.
Another Endorsation of Life Insurance
A superannuation bill has been passed by the Ontario gov-
ernment which compels every civil servant in the employ of
the government for a stated period of time to carry at least
$5,000 of life insurance in one of the regular "old-line" life
insurance companies. This becomes an added endorsement to
the institution of life insurance.
The year has also seen the introduction of returned sol-
diers' insurance by the Dominion government, which will re-
ceive applications for a period of two years on lives of all
returned men without medical examination, for sums ranging
from $500 to $5,000.
January 7, 1921
THE MONETARY TIMES
The MONARCH LIFE
ASSURANCE COMPANY
Head Office : Winnipeg
W. A. MATHESON, President
F. W. ADAMS, Vice-President
.1. \V. W. STEWART,
Mana^in^ Director
J. A. MACFARLANE, A. I. A.,
Secretary and Actuary
C. R. BISSEI.L, A.A.S.,
Assistant Actuary
(.. J. TELFER, Treasurer
.1. H. ROMIO, Agency Secretary
Provincial Representatives :
ARTHUR SPIATT
Toronto
J. E. S. BUCHANAN
Winnipeg
M. B. FARR
Retina
H. S. ELLIS
Calgary
C. A. CRYSDALE
Vancouver
Security — Service — Satisfaction
(jenerous Contracts available for Reliable Agents in each Province
The Mutual Life and Citizens'
Assurance Company Limited (of Australia)
CHIEF OFFICE
286 ST. JAMES STREET, MONTREAL
Points from Thirty-Third Annual Report for Year Ended 31st December, 1919
Total Assets exceed $74,000,000
Ordinary Branch. New Business for 1919 exceeds 12.200.000
Income for year exceeds 8,500,000
Payment to policyholders for year exceeds 3, 1 77,000
{Not including bonuae:. of about $1,250,000 credited to Ordinary Branch policyholders, but not yet drawn
Year
1899
1909
1919
Progress of the Company
Income Assets
$1,410,000
4,400,000
8,500,000
$ 2,600,000
23,800,000
74,000,000
The Mutual Life and Citizens' guarantees on each of its Ordinary Branch Policies a low rate of
expense to policyholders, and for the year 1919 the percentage of Ordinary Branch expenses to
premiums was only 1 1.5 which is less than the guarantee.
BIG
BONUSES
Application for Agencies invited from Salesmen whether experienced
in Insurance or not.
Secretary . J. P. MOORE, A.I. A.
Agencv Supervisor : W. B. ROBINSON
LOW
EXPENSES
THE MONETARY TIMES
Volume 66
New Licenses Indicate Activity in Insurance Field
Armour and Eaton Are New Life Companies Started Last Year —
Large Number of Fire and Automobile Licenses Issued — Other Casualty
Lines Are Well Represented — Several Fraternal Societies Start in Canada
FIFTY-TWO new licenses had been issued by the Depart-
ment of Insurance, Ottawa, for the writing of insurance in
Canada up to October 31st last. There were also a large
number issued by the various provincial departments. The
complete list, compiled by The Monetary Times, is shown below.
This activity reflects the favor with which Canada is I'e-
garded as an underwriting field. The new licenses are for
practically every branch of insurance. Fire and life are, of
course, prominent, and among the casualty lines automobile
insurance seems to be the most favored, due no doubt to the
rapidly-growing possibilities in this field. Fraternal societies
are by no means inactive, as eleven new Dominion licenses
were issued for this class of business.
Canada
JANUARY
Yorkshire Insurance Co., Ltd. — Automobile.
Hudson Bay Insurance Co. — Fire.
Continental Casualty Co. — Accident, automobile and sickness.
National Surety Co. — Forgery.
Royal Scottish Insurance Co. — Fire.
FEBRUARY
Caledonian American Insurance Co. — Fire.
Continental Insurance Co. — Automobile.
Diminion of Canada Guarantee and Accident Co. — Steam
boiler.
Fidelity-Phenix Fire Insurance Co. of New York — Automo-
bile.
APRIL
Home Insurance Co. — Burglary and property damage.
Firemen's Fund Insurance Co. — Fire, inland transportation
and automobile.
Alliance Insurance Co. of Philadelphia — Inland transporta-
tion.
Bee Hail Insurance Co. — Hail.
Pacific Marine Insurance Co. — Inland marine, fire, inland
transportation and automobile.
Pacific Coast Fire Insurance Co. — Inland transportation, au-
tomobile, tornado, explosion, hail, marine, sprinkler leak-
age, burglary and accident.
Armour Life Insurance Co., Edmonton, Alta. — Life.
United Canada Fire Insurance Co., Winnipeg, Man. — Miscel-
laneous classes, but not life.
MAY
Manufacturing Wood Workers Underwriters — Fire.
London Mutual Fire Insurance Co. — Automobile.
United States Fidelity and Guarantee Co. — Insurance against
loss or damage by robbery.
Phoenix Insurance Co. of Hartford, Conn. — Hail.
Westchester Fire Insurance Co. — Explosion.
JUNE
Traders and General Insurance Association, Ltd. — Fire.
Pacific Marine Insurance Co. — Fire, automobile and inland
transportation.
London and Lancashire Fire Insurance Co., Ltd. — Explosion.
General Accident Assurance Co. of Canada — Burglary.
Casualty Co. of Canada — Automobile.
Globe Indemnity Co. of Canada — Forgery.
JULY
Hartford Livestock Insurance Co. — Livestock.
Lumbermen's Mutual Casualty Co. — Automobile.
Hartford Accident and Indemnity Co. — Accident, automobile,
burglary, guarantee, livestock, plate glass and sickness.
Northwestern Mutual Fire Association of Seattle, Wash. —
Fire.
Grain Insurance and Guarantee Co. — Fire and guarantee.
National Provincial Plate Glass and General Insurance Co.,
Ltd.— Fire.
American Central Insurance Co. — Fire, automobile, explosion
and tornado.
AUGUST AND SEPTEMBER
T. Eaton Life Insurance Co. — Life.
Canada Security Assurance Co. — Fire, hail and automobile.
Northwestern Mutual Fire Association — Fire and automobile.
Hardware Dealers' Mutual Fire Insurance Co. of Wisconsin
— Fire.
Retail Hardware Mutual Fire Insurance Co. — Fire.
Minnesota Implement Mutual Fire Insurance Co. — Fire.
Sterling Fire Insurance Co. of Indiana — Fire and tornado.
National Benefit Assurance Co., Ltd. — Accident and sickness.
Great American Insurance Co. — Inland transportation.
Traders' General Insurance Association, Ltd. — Automobile.
OCTOBER
Globe Indemnity Co. of Canada — Inland transportation.
Northern Assurance Co., Ltd. — Burglary.
London and Lancashire Guarantee and Accident Co. of Can*
ada — Burglary.
Essex and Suffolk Equitable Insurance Society, Ltd. — Fire.
National Liberty Insurance Co. of America — Fire.
Royal Indemnity Co. — Accident, automobile, burglary, guar-
antee, sickness and steam boiler.
Tokio Marine and Fire Insurance Co., Ltd. — Fire.
Canada
The following fraternal benefit societies also obtained
Dominion licenses: Association Canado-Americaine, Montreal;
Catholic Order of Foresters, Toronto; Knights of Columbus,
Saskatoon; Knights of Pythias, St. Thomas; Ladies' Catholic
Benevolent Association, Montreal; The Maccabees, Toronto;
Royal Arcanum, Hamilton; Western Mutual Life Association,
Winnipeg; Woman's Benefit Association of the Maccabees,
Sarnia; Workmen's Circle, Montreal; Jewish National Work-
ers' Alliance of America.
Licenses issued by the various provinces up to the end
of October were as follows: —
Quebec
JANUARY
National Surety Co. of New York — Burglary.
North Empire Fire Insurance Co. of Winnipeg — Fire.
FEBRUARY
Fidelity-Phenix Fire Insurance Co. of New York — Fire, tor-
nado, explosion and automobile.
National Surety Co. of New York — Guarantee and forgery.
National Benefit Assurance Co., Ltd., of London, England —
Fire.
Continental Insurance Co. of New York — Automobile.
Continental Casualty Co. of Hammond, Ind. — Accident, auto-
mobile and sickness.
MARCH
Dominion of Canada Guarantee and Accident Co. — Guarantee,
sickness, accident, burglary, plate glass, fire.
General Animals Insurance Co. of Canada — Plate glass.
Royal Indemnity Co. of New York — Accident, automobile,
guarantee, burglary, sickness and steam boiler.
Essex and Suffolk Equitable Insurance Society, Ltd., of Col-
chester, England — Fire insurance.
Supreme Council of the Royal Arcanum, Boston, Mass. — Life.
Queensland Insurance Co., Ltd., of Sydney, N. S. W. — Inland
and ocean marine.
January 7, 1921
THE MONETARY TIMES
COMMERCIAL UNION
ASSURANCE CO.
Limited of London, England
Capital Fully Subscribed
8 14,750.000
Capital Paid Up - - - - -
7.375,000
Life Fund and Special Trust Funds
94,147.565
Total Annual Income exceeds
75,000,000
Total Funds exceed . - - -
209.000.000
Deposit with Dominion Government -
(As at 31st December, 1919)
1.416.333
HEAD OFFICE, CANADA BRANCH
" Commercial Union Building "
MONTREAL
Toronto Office- 49 WELLINGTON STREET EAST
Geo. R. Hargraft, General Agent
PALATINE
Insurance Company
Limited, of London, England
Capital Fully Paid
Fire Premiums. 1919 net
Interest, net . - -
Total, Income . . - -
Funds - - - - -
Deposit with Dominion Government,
(As at 31st. December, 1919)
«,1, 000,000
3,957,650
187,935
4,145,585
6,826,795
365,567
In addition to the above there is the further Guarantee
of the Commercial Union Assurance Company Limited,
whose funds exceed 2209.000.000.
HEAD OFFICE, CANADIAN BRANCH
"Commercial Union Building"
MONTREAL.
Toronlo Office : 60 KING STREET, WEST
Jones & Proctor Bros., Linmited, Agents.
THE
CANADA
ACCIDENT AND FIRE
ASSURANCE COMPANY
Policies guaranteed by
Commercial Union Assurance Co., Ltd.
of London, Eng.
HEAD OFFICE - MONTREAL
Montreal General Agents (Fire)
G. U. Price & Co. Limited
Toronto General Agents
Jones & Proctor Bros. Limited
FARMERS' FIRE and HAIL
INSURANCE COMPANY
Fire, Hail,
Automobile
A strong Canadian Conipain?
confining its business and its
investments to Canada.
HEAD OFFICE
CALGARY, ALBERTA
Keep Canadian Money
in Canada
208
THE MONETARY TIMES
Volume 66
Scottish Metropolitan Assurance Co., Ltd., of Edinburgh, Scot-
land— -Inland and ocean marine.
Preferred Accident Insurance Co. of New York — Automobile,
accident and sickness.
APRIL
Caledonian-American Insurance Co. of New York — Fire.
Imperial Guarantee and Accident Insurance Co. of Canada,
Toronto — Burglary.
Canadian Fire Insurance Co. of Winnipeg — Fire.
Motor Union Insurance Co. — Automobile.
Washington Marine Insurance Co. of New York — Inland and
ocean marine.
JUNE
British Northwestern Fire Insurance Co. — Fire.
Tokio Marine and Fire Insurance Co. — Fire.
American Central Insurance Co. — Fire, hail and tornado.
JULY
American Central Insurance Co. — Automobile and explosion.
AUGUST AND SEPTEMBER
Union Assurance Society, Ltd. — Automobile.
Hartford Accident and Indemnity Co. — Accident, automobile,
burglary, guarantee, livestock, plate glass and sickness.
OCTOBER
Canada Security Assurance Co. — Hail, fire and automobile.
Sterling Fire Insurance Co. of Indiana, .U. S. A. — Fire and
tornado.
Traders and General Insurance Association, Ltd. — Fire.
Globe Indemnity Co. of Canada — Inland transportation.
NOVEMBER
London and Lancashire Guarantee and Accident Co. — Bur-
glary.
Beaver Fire Insurance Co. — Fire.
Northern Assurance Co.^ — • Burglary.
National Benefit Assurance Co., Ltd. — Accident and sickness.
British Columbia
JANUARY
Occidental Fire Insurance Co. — Automobile.
MARCH
Preferred Accident Insurance Co. of New York — Accident,
sickness and automobile.
Fidelity-Phenix Insurance Co. of New York — Automobile.
National Surety Co. — Burglary and forgery.
Essex and Suffolk Equitable Insurance Society, Ltd. — Fire.
Scottish Metropolitan Assurance Co., Ltd. — Marine and inland
marine.
Globe and Rutgers Fire Insurance Co.- — Marine.
Continental Insurance Co. — Automobile.
APRIL
Royal Scottish Insurance Co., Ltd. — Fire.
Motor Union Insurance Co. — Automobile.
Alliance Insurance Co. of Philadelphia — Inland transporta-
tion.
MAY
Caledonian-American Insurance Co. — Fire.
Canadian Indemnity Co. — Fire.
Palatine Insurance Co., Ltd. — Automobile.
JULY
Columbia Insurance Co. — Fire.
Railway Passengers Assurance Co. — Fire.
Wawanesa Mutual Insurance Co. — Fire.
AUGUST AND SEPTEMBER
Pacific Marine Insurance Co. — Fire, automobile and inland
transportation.
Eagle Star and British Dominions Insurance Co. — Automobile.
Columbia Insurance Co. — Inland transportation and automo-
bile.
American Central Insurance Co. — Automobile, explosion an>l
tornado.
British Crown Assurance Corp. — Fire and automobile.
OCTOBER
Hartford Accident and Indemnity Co. — Accident, automobile,
burglary, guarantee, livestock, plate glass and sickness.
London Mutual Fire Insurance Co. of Canada — Automobile.
Traders and General Insurance Association — Fii-e.
Lumbermen's Mutual Casualty Co. — Automobile.
Sterling Fire Insurance Co. of Indiana, U. S. A. — Fire and
tornado.
Marine Insurance Co., Ltd. — Automobile.
National Benefit Assurance Co., Ltd. — Accident and sickness.
NOVEMBER
London and Lancashire Guarantee and Accident Co.— Bur-
glary.
Manitoba
MARCH
Essex and Suffolk Equitable Insurance Society, Ltd.— Fire.
Standard Mutual Fire Insurance Co. of Winnipeg — Mutual
fire.
MAY
Caledonian- American Insurance Co. — Fire.
JUNE
Canadian Security Assurance Co. — Fire, hail and automobile.
General Accident, Fire and Life Assurance Corp., Ltd. — Fire,
hail and automobile.
OCTOBER
Sterling Fire Insurance Co. of Indiana, U. S. A. — Fire and tor-
nado.
Hartford Accident and Indemnity Co. — Accident, automobile,
burglary, guarantee, livestock, plate glass and sickness.
Canadian Hardware and Implement UnderwTiters — Fire.
Minnesota Implement Mutual Fire Insurance Co. of Owatonna,
Minn. — Fire.
Hardware Dealers' Mutual Fire Insurance Co. of Stevens
Point, Wis. — Fire.
Retail Hardware Mutual Fire Insurance Co. of Minneapolis,
Minn. — Fire.
Grain Insurance and Guarantee Co. of Winnipeg — Fire and
guarantee.
National Benefit Assurance Co., Ltd., of London, England —
Fire, accident and sickness.
NOVEMBER
T. Eaton Life Assurance Co., Ltd. — Life.
Alberta
Continental Casualty Co. — Sickness and automobile.
Caledonian-American Insurance Co. — Fire.
Retail Merchants' Mutual Fire Insurance Co. — Fire.
Pacific Marine Insurance Co. — Fire, inland transportation and
automobile.
Hartford Accident and Indemnity Co. of Hartford — Sickness,
accident, burglary, guarantee, livestock, automobile and
plate glass.
Grain Insurance and Guarantee Co. of Winnipeg — Fire and
guarantee.
Ontario
Canada Security Assurance Co. — Fire, hail, automobile.
British General Insurance Co., Ltd. — Fire.
Hartford Accident and Indemnity Co. — Accident, automobile,
burglary, guarantee, livestock, plate glass and sickness.
National Benefit Assurance, Ltd., of London, England — Fire,
accident and sickness.
Girard Fire and Marine Insurance Co. — Fire and tornado.
Sterling Fire Insurance Co. of Indiana, U. S. A. — Fire and
tornado.
Northwestern Mutual Fire Association — Fire, fidelity, surety
and motor vehicle.
Canada Security Assurance Co. — Fire, hail and automobile.
National Liberty Insurance Co. — Fire.
Hartford Livestock Insurance Co. — Livestock.
Saskatchewan
American Equitable Assurance Co. of New York — Fire.
January 7, 1921
THE MONETARY TIMES
A STRONG CANADIAN COMPANY
LYMAN ROOT
ROBERT LYNCH STAILING
F E HEYES
IMJERAVKITEKS
GUARANTEED BY THE OLDEST
INSURANCE OFFICE IN THE WORLD
( DEPOT? ATTOl^
THE SUN INSURANCE OFFICE OF
LONDON, ENGLAND
Head Office TORONTO
Applications for Agencies in Unrepresented Districts invited.
We Solicit Your Business.
THE PROVIDENT
ASSURANCE COMPANY
FIRE & CASUALTY
HEAD OFFICE:
CANADA LIFE BUILDING,
189 St. James St., Montreal
ONTARIO OFFICE:
C.P.R. BUILDING, TORONTO
A. M. ALETTER, Provincial Manager
Applications for Agencies are invited
CROWN LIFE
AN ALL-CANADIAN COMPANY
Policies Exceed
$26,000,000
Assets Elxceed
$3,000,000
Liberal Contracts on All Approved Pians
Excellent Openings for Insurance Salesmen
THE CROWN LIFE INSURANCE COMPANY
Home Office - Toronto
Branch Offices throughout Canada
THE MONETARY TIMES
Volume 66
Legal Decisions Affecting Life Insurance
Dominion and Not Provincial Law Determines Beneficiary of Policy of
Society Operatins Under Dominion Charter— Case Involving Trust Company
is Untangled — Interpretation of Alberta Law Regarding Beneficiaries
THE decisions of the several courts of Canada during the
past year in cases involving questions relating to life insur-
ance have not been of a very momentous character, although
the one which is dealt with first in this article is important in
that it shows the application of a provincial act to an insur-
ance company incorporated under a Dominion charter.
In that case, in re Richardson Estate, the Manitoba Court
of Appeal held that a provincial insurance act which purports
to enable an insured to revoke the benefit of insurance on his
life made in favor of any person whomsoever and to divert the
insurance to new beneficiaries, does not override special pro-
visions contained in a policy issued by a Dominion company
in conformance with its charter and which limits such powers.
Will Ciianged Beneficiary
The necessary facts of the case were that on April 6th,
1895, a policy was issued to Hugh Richardson by the Inde-
pendent Order of Foresters by which the order agi-eed to pay
to Elizabeth Richardson, his wife, $3,000. Richardson at the
time was living in Saskatchewan, but later moved to Mani-
toba, dying there on February 7, 1916, and leaving a will by
v.'hich he bequeathed to his executors all his residuary estate,
including "life insurance or the proceeds of any policy of in-
surance"— one-half of such residuary estate to be paid to his
housekeeper, Florence Besley.
The order paid the money into court and in the reference
two main questions were asked: (1) Whether the proceeds of
the policy pass and become payable out to the executors
under and by virtue of the said will, or are they payable to
the said Elizabeth Richardson as beneficiary named tlierein ?
(2) Whether the said Florence Besley is entitled to any inter-
est in the said proceeds of the said policy or moneys now in
court If so, what share ?
The Court of Appeal reversed the decision of the trial
judge, who had directed that the proceeds of the policy be paid
to the executors to form part of the estate of the deceased for
the purpose of distribution in accordance with the provisions
of the will.
The method of designating the beneficiary, as required by
the order, is contained in section 4, sub-section 5 of the con-
stitution, which is as follows :
"(5) The insurance or mortuary benefit of a member
shall be paid to the member himself, or to the wife or hus-
band of, or to the affianced wife of. or to the affianced husband
of, or to the children of, or to the blood relations of, or to per-
sons dependent upon, such member, who may have been des-
ignated, as provided in the constitution and laws, by name, as
the beneficiary of such member, or, subject to the approval of
the supreme chief ranger, to such other beneficiary as may be
permitted by the laws of the province, state or country in
which the member resides at the time of making the designa-
tion of the beneficiary or beneficiaries."
The method of changing the beneficiary is contained in
section 150 (1) (a), which is: — "By filing with his court his
application for change of beneficiary on form No. 14, fully
filled in, signed by himself and properly executed, setting
forth fully and clearly the changes he desires to make; pro-
vided that a designation of a beneficiary not in conformity
with section 4, sub-section 5 shall be null and void from the
beginning."
Decision of the Court
Their Lordships in deciding the case say in part: "The
main ground upon which it is argued that the Manitoba law
applies is that by the Manitoba Insurance Act, where a company
is licensed under tliat act, the moneys payable under a life
assurance policy shall be payable in this province; that the
insured having become a resident of Manitoba at the time of
his death the laws of that province would govern his life in-
surance. But under section 3, that act does not apply to a
company licensed by the Dominion of Canada, as is the Inde-
pendent Order of Foresters. In my view it has not been
shown that the law of Manitoba applies in this case.
"If the Manitoba statute applies to such insurance and a
member of the society is permitted to change the beneficiary
as he pleases, and even to divert the insurance to a stranger,
as it is contended he may do under section 15, then the pur-
poses and objects of the society may be frustrated and a
serious change be effected in its constitution and status as a
fraternal society.
"To remove the restrictions placed by the constitution
and laws upon the change of beneficiaries and the application
of the insurance would be a serious interference with the ob-
jects of the society as incorporated by the Act of the Parlia-
ment of Canada.
"Section 15 of the Life Insurance Act would not only in-
terfere with the contract itself, but it would seriously affect
the constitution and status of the order by controlling and
abridging its powers.
"The life insurance in the Ordei of Foresters, and the
proceeds of it, belonged to the testator's wife and was not his
to dispose of. He did not attempt to revoke the benefit or
appropriation in her favor.
"I would answer the first question in the stated case as
follows: The proceeds of the endowment certificate, being the
moneys paid into court, are payable to Elizabeth Richardson,
the beneficiary designated by the deceased. To the second
question I would answer: No."
Standard Trusts vs. Canada Life
In another life insurance case, that of Standard Trusts
Company vs. Canada Life Assurance Company, the facts were
that the Standard Trusts Company was the executor of the
will of one Ferris, who in his lifetime was a half-owner in cer-
tain Edmonton property upon which he had given a mortgage
for $50,000 to the Canada Life Assurance Company. It was
a condition of obtaining the mortgage, at the rate of 7 per
cent., payable $5,000 a year for four years and the balance in
five years, that an insurance policy for an amount equal to the
principal should be given and assigned to the company as col-
lateral security. The policy was issued to Ferris and as-
signed, but half the first premium was charged to his co-
owner.
The second premium was paid by Ferris, one-half being
charged to and paid by the individual defendants who had then
acquired the half-interest of Ferris' co-owner, but before the
third premium became due the individual defendants had ac-
quired the whole interest in the lands mortgaged. A tenn of
the mortgage made the insurance premiums a charge on the
land if not paid by the assured, and upon the acquisition by
the defendants of Ferris' interest on July 10, 1914, an agree-
ment was entered into between thena which provided that
Ferris should assign the policy to the defendants, but that
they should pay the premiums.
Although one instalment of $5,000 was past due at the
time of this agreement it had not yet been paid. One instal-
ment of $5,000 was subsequently paid and Ferris paid the de-
fendants $110, which was one-tenth of the surrender value at
that time of the policy and reimbursed the defendants one-
tenth of the next annual premium. Before any other instal-
ment was paid or any further premium paid, Ferris, who had
gone to the war, was killed in action.
Awarded One-tenth of Policy
The court's decision was rendered in the following words:
"When the necessary proofs to obtain the insurance moneys
January T. 1921
THE MONETARY TIMES
THE
UNITED
ASSURANCE COMPANY
niiiiiiniiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiNiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^
Fire, Hail &
Automobile
illlllllllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllUlllillllllllllllllllllllllW
HEAD OFFICE: CALGARY
A Reliable Canadian Company
GREAT NORTH
INSURANCE COMPANY
Head Office: 205 ODDFELLOWS' BLDG..
CALGARY - - ALBERTA
Licensed in Alberta and Saskatchewan for
Fire, Hail and Live Stock Insurance
and in British Columbia for
Live Stock Insurance
"A Western Company for Westerners "
AGENTS WANTED
in districts where we are not already represented
THE
Ocean Accident and Guarantee
Corporation, Limited
OF LONDON, ENGLAND
Personal Accident, Sickness, Liability, Automobile,
Plate Glass, Guarantee, Burglary, and Fire Insurance
Assets, December 31st, 1919, Exceed - - $33,200,000.00
Claims Paid in Canada since 1 903 exceed - $ 4,000,000.00
Canadian Head Office : TORONTO
W. T. PERRY, Manager for Canada. J. A. MINGAY, Assistant Manager.
BRANCHES : ST. JOHN, MONTREAL, WINNIPEG, REGINA, CALGARY, VANCOUVER.
Applications for Agencies Invited.
THE MONETARY TIMES
were forwarded it was found that a mistake had been made by
Ferris in understating his age and that at his actual age the
premiums paid would be the premiums for an insurance of
$47,500 instead of $50,000, and in accordance with the terms
of the policy the policy was treated as one for $47,500. Just
how this little error affects the terms of the agreement and
the rights of the parties is what is in issue in this action.".
"I agree with the trial judge that the plaintiff is not
entitled to the full beneficial interest in the policy, subject to
any claims of the defendants for reimbursement of the pre-
miums paid and have nothing to add to the reasons he gives
for reaching that conclusion.
"I also agre*" with him that the plaintiff is not entitled to
an interest ir. the policy represented by the three $5,000 instal-
ments which were payable by the terms of the mortgage but
only one of which had been actually paid at the death of the
assured.
"I agree with the trial judge also that the plaintiff is en-
titled to one-tenth of the profits because Ferris was bearing
the burden of one-tenth of the policy which had been released
to him.
"I would therefore allow the appeal and declare that the
plaintiff is entitled to one-tenth of the amount of the policy
and profits amounting to $4,750 and $75.57 respectively. The
plaintiff should have judgment against the individual defend-
ants for $4,825.57 with interest at the legal rate from January
16, 1917."
WHiere Beneficairy Dies Before Assured
In another case, the last to be considered, the Supreme
Court of Alberta decided that an insurance policy in favor of
a wife who died before the maturity of the contract, became
under the Life Insurance Beneficiaries Act, one for the benefit
of the children of the assured and formed no part of the estate
of the assured, but if the policy was payable to the wife if
living and if not then to the assured's executors, administra-
tors or assigns, such insurance went to the executors of the
will of the assured and formed part of his estate.
The facts as stated by His Lordship were as to whether
the money payable on two policies of insurance on the life of
the deceased was or was not to be taken into account in decid-
ing the question of the liability of his estate for succession
duty. The Canada Life policy for $5,000 was upon its face
made payable to his wife. The Confederation Life policy for
$10,000 was upon its face made payable to his wife if living,
and if not, then to his executors, administrators or assigns.
His wife predeceased him and he did not marry again. He
never made any other declaration with reference to this insur-
ance money and these policies stood at the time of his death
as they had always done. He left but one child surviving him.
The reasons for the decision given on the above facts
were rendered in the following words: —
"(1) That as the Life Insurance Beneficiaries Act pro-
vides that if a sole beneficiary dies before the maturity of the
contract the assured may by declaration provide that the pol-
icy shall be for the benefit of himself or of his estate, or of any
other person or persons whether or not such person or persons
belong to the class of preferred beneficiaries. In the absence,
however, of any such declaration, a policy in favor of a w-ife
who dies before the maturity of the contract becomes one for
the benefit of the child or children of the assured, and that is
his case. The money payable under the Canada Life policy is,
upon the facts and by virtue of the statutory revisions, the
property of the son of the assured, and as a preferred bene-
ficiary. It therefore forms no part of the estate of the as-
sured and it is only on the property of the deceased that suc-
cession duty is payable.
"(2) That the Confederation Life policy is different.
Though his wife was the original beneficiary under it, upon her
death it was to be paid to the executors, administrators or
assigns of the assured. It was quite competent to the assured
to thus direct. He could have done it after her death, and I
see no reason why he could not do it in advance of ^nd condi-
tional upon her death. I do not see how the son can possibly
claim this money as a preferred beneficiary. It must go, I
should say, to the executors of the will of the assured, and
form part of his estate. It, therefore, was not wholly kept up
by him for the benefit of one of the class to which exemption
is given by section 6 (g) of the Succession Duties Act (hus-
band, wife, child, grandchild or mother of the deceased), and
is therefore dutiable."
B.C. LEGISLATION FOR INSURANCE OF MINORS
Minors Over Sixteen Years May Now Ensure of Own Accord
— Parent Need Not Have Pecuniary Interest to
Effect Insurance on Child
TWO amendments to the insurance law of British Columbia
were passed at the 1920 session of the provincial legislature.
The first was a slight amendment to the fire insurance law,
reading as follows: —
"1. This act may be cited as the 'British Columbia Fire
Insurance, Act Amendment Act, 1920.'
"2. Section 5c of the 'British Columbia Fire Insurance
Act,' being chapter 11.3 of the 'Revised Statutes of British
Columbia, 1911,' as enacted by section 3 of chapter 36 of the
Statutes of 1919, is hereby amended by adding the words 'mer-
chandise in' between the words 'of and 'mercantile' in the
fourth line thereof."
Insurance for Minors
The second is an act to amend the "Life Insurance Poli-
cies Act," and reads as follows: —
"1. This act may be cited as the 'Life-insurance Policies
Act Amendment Act, 1920.'
"2. The 'Life-insurance Policies Act,' being chapter 115
of the 'Revised Statutes of British Columbia, 1911,' is amend-
ed by adding the following as sections 13a, 13b, and 13c: —
Policies on the Lives of Infants
"13a. A minor over the age of sixteen years may effect
contracts of insurance on his life, and may do in respect of
any such contract w-hatever under this act a person of full age
may lawfully do, and the like rules of construction shall pre-
vail.
"13b. No contract of insurance effected by a parent upon
the life of his child shall be invalid by reason only of want of
pecuniary interest in the life of the child.
"13c. (1) No contract of insurance shall be effected on
the life of a child unless the child is at least one year old.
"(2) Where a contract of insurance is effected on the life
of a child under ten years of age, the insurance money payable
on the maturity of the policy shall not exceed the following
amounts : —
"Thirty-two dollars if the child dies under the age of two
years:
"Forty dollars if the child dies under the age of three
years:
"Forty-eight dollars if the child dies under the age of
four years :
"Fifty-six dollars if the child dies under the age of five
years :
"Eighty-three dollars if the child dies under the age of six
years :
"One hundred and twenty dollars if the child dies under
the age of seven years:
"One hundred and sixty dollars if the child dies under the
age of eight years:
"Two hundred dollars if the child dies under the age of
nine years:
"Two hundred and sixty dollars if the child dies under the
age of ten years:
"(3) If an insurer enters into a contract on the life of a
child under ten years of age, and the insurance money payable
thereunder exceeds the amount fixed by subsection (2), the
premiums paid may be recovered from the insurer by the per-
son making the payments, together with compound interest
thereon at the rate of seven per cent, per annum.
"(4) Except as pi'ovided by subsection (5), this section
shall not apply to a contract of insurance effected: —
"(a) Before the enactment of this section; or
January 7. 1P21 THE MONETARY TIMES
INCORPORATED A.D. IS51
Western Assurance Company
FIRE, AUTOMOBILE, MARINE, EXPLOSION,
RIOTS, CIVIL COMMOTION AND STRIKES
Assets ....... Over $ 8,000,000.00
Losses paid since organization in 1851 - - - Over $77,000,000.00
DIRECTORS
W. B. MEIKLE. President and Cen- H. C. COX GEO. A. MORROW
eral Manager JOHN H. FULTON (New York! Lt.-Col. the Hon. FREDERIC
Sir iOHN AIRD D. B HANNA NICHOLLS
ROBERT B1CKERDIKE( Montreal) E. HAY Brig.-Gen'l Sir HENR'l PELLATT,
Lt.-Col. HENRY BROCK JOHN HOSKIN. K.C., LL.D. C.V.O.
ALFRED COOPER (London. Eng.) MILLER LASH E. R. WOOD
London Offices : 14 CORNHILL, LONDON, E.C.
HEAD OFFICES:
Western Assurance Buildings, Corner Scott and Wellington Streets,
TORONTO
W. B. MEIKLE, President and General Manaf^er A. R. PRINGLE. Canadian Fire Manager
C. S. WAINWRIGHT, Secretary
NON- TARIFF
FIRE
THE STRATHCONA FIRE
INSURANCE COMPANY
MONTREAL
A. A. MONDOU, President and General Manager
JACQUES MARCHAND, Secretary and Assistant General Manager
Head Office : 90 St. James St., MONTREAL
THE MONETARY TIMES
Volume 06
"(b) On the life of a child of any age, if the person
ofFocting the insurance has a pecuniary interest
in the life of the child; or
"(c) On the life of a child under ten years but not
less than one year of age, if the insurance
money payable on the death of the child is lim-
ited to the pi'emiums paid with interest.
"(5) The provisions of this section shall be printed m
conspicuous type on every contract of insurance hereafter ef-
fected on the life of a child under ten years of age and on
every circular relating to or application for any such contract,
or a copy of such provisions printed in conspicuous type shall
be firmly attached to every such contract, circular or applica-
tion, and any person who contravenes this subsection shall be
liable, on summary conviction, to a penalty of two hundred
dollars.
"3. The amendments to said chapter 115 enacted by sec-
tion 2 of this act shall, except as therein expressly provided,
apply to all contracts of insurance, whether effected before or
after the date on which this act comes into force."
Ontario Amendment to Insurance Act
Agent's Certificate of Authority Limited to Individual -Prohibition on
Acting Without Certificate— Division of Insurance Business for Purpose
of Licensing— Amendment to Permit Amalgamation of Friendly Societies
ONE of the important pieces of legislation regarding insur-
ance during the past year was the act passed by Ontario
amending the Insurance Act. The clauses are as follows: —
"1. This act may be cited as The Ontario Insurance
Amendment Act, 1920.
"2. The clause lettered (b) in section 40 of The Ontario
Insurance Act is amended by striking out the words 'not ex-
ceeding six dollars per week' and substituting therefor the
words 'not exceeding ten dollars per week.'
"3. Sections 69 and 70 of the said act are amended by
striking out the figures '1910' whei-ever they appear in the
name 'The Insurance Act, 1910 (Canada).'
Agents' Certificates
"4. Section 99a of the said act as enacted by section 5 of
The Ontario Insurance Amendment Act, 1914, is hereby
amended as follows: —
"(a) By striking out the words 'firm or corporation' in
the third line of subsection 1;
"(b) By repealing subsection 2 of the said section and
substituting the following therefor: —
"(2) No agent shall act for any company in On-
tario unless he has fully complied with the
provisions of this section and has procvired
an agent's cei'tificate of authority from the
superintendent of insurance to do the class
of insurance which that company is licensed
or registered to do in the province;
"(c) By adding the following subsection 2 (a): —
"(2a) An agent's certificate of authority may be
issued for any one or more of the following
divisions of insurance business, viz: (a) life
insurance ; (b) fire insurance; (c) casualty
insurance. The superintendent may make
regulations specifying the classes of insur-
ance which may be included in these divi-
sions and nlay include any class of insur-
ance in two or more of the said divisions if
in his opinion the character of the business
so requires;
"(d) By repealing subsection 5 and substituting the
following therefor: —
"(5) An agent having received a certificate of
authority may act during the term of such
certificate as agent for any company li-
censed or registered in Ontario to do the
class of business to which the said certifi-
cate of authority applies.
"5. Subsection 1 of section 163 of the said act is hereby
amended by striking out the word 'or' in the second line
thereof and by inserting after the words 'lawful heirs' in the
second line thereof the words 'or next of kin.'
Amalgamation of Friendly Societies
"6. The said act is amended by inserting therein the fol-
lowing section: —
"78j — (1) A friendly society incorporated and registered
under the law of Ontario shall not reinsure or
amalgamate with or accept the transfer of mem-
bership or funds of any other society registered
according to the provisions of this act unless such
reinsurance, amalgamation or transfer is evidenced
by a contract in writing setting but in full the
tei-ms and conditions of such reinsurance, amalga-
mation or transfer, and svich contract is filed with
the superintendent together with a sworn state--
ment of the financial condition of each of such
societies by its principal officers and a certificate
of such officers duly verified under oath that such
reinsurance, amalgamation or transfer has been
approved by a vote of two-thirds of the members
present or duly represented at a meeting of the
supreme legislative or governing body of each of
said societies regularly called.
"(2) The superintendent may require such additional
actuarial or other reports as he' may deem neces-
sary, which reports shall be prepared at the ex-
pense of the societies.
'(3) If, in his opinion, slich financial statements are cor-
rect and reports satisfactory and the contract in
conformity with the provisions of this Subsection
and such reinsurance, amalgamation or transfer is
just and equitable to the members of the societies
and that the interests of such members are proo-
erly protected by the contract, he may approve
such reinsurance, amalgamation or transfer and
issue his certificate to that effect and thereupon
such contract shall be of full force and effect and
binding upon the societies which are parties there-
to and upon all members thei'eof.
'(4) If one of the contracting societies is a friendly
society not incorporated under the law of Ontario,
the superintendent shall not issue his certificate
until it has been established to his satisfaction that
such society has fully complied with the require-
ments of the law of the legislative authority under
which the society was incorporated; provided that
a certificate of the supervising insurance official ap-
pointed by such legislative authority that such
society has fully complied with the requirements of
the law of the said authority shall be sufficient evi-
dence to the superintendent of that fact."
NO CHANGES IN PRINCE. EDWARD ISLAND
There were no amendments to the insurance law of
Prince Edward Island at the 1920 session of the provincial
legislature.
January 7, 1921 THE MONETARY TIMES
Full Insurance makes financial help surer
Ever)- Bank Manager knows the value of Business Insurance. One of
the most important questions he will ask when receiving au application for
a loan is " How much life insurance is carried ? " For the one man busi-
ness, the partnership, or the big corporation, life insurance is a necessity.
We make a specialty of Business Insurance
From our new " Canadian '" Series of Policies we can show you the parti-
cular policy which is best suited to the requirements of your own
business. Phone our local agenc)', or write direct to
The London Life Insurance Co.
Head Office ... - London, Canada
BRITISH COLONIAL
Fire Insurance Company
MONTREAL
Canadian — Strong — Progressive
Fire Insurance at Tariff Rates
THE MONETARY TIMES
Volume 66
Burglary Insurance Placed on New Footing
Work Accomplished by Burglary Underwriters' Association Includes Revi-
sion of Rates and Agents' Commissions — Covering Must Be Fifty Per Cent,
of Fire Insurance— Improved Methods May Lead to Reduction in Rates
By Col. A. E. KIRKPATRICK
General Manager lor Canada, United States Fidelity and Guaranty Company
DURING the year 1920 burglary insurance in Canada made
interesting strides. Up to the date of the writing of this
article (November 13th) there are fifteen companies licensed
to do burglary business in Canada, of which all are operating
more or less actively in the burglary business except one, and
all of whom have already joined or intimated their intention
of joining the Burglary Underwriters' Association as soon as
they are ready to commence active operations.
The year 1920 has shown a vast improvement in the spirit
existing between the various managements and there has de-
veloped a kindly feeling of mutual assistance looking towards
the general betterment of the business conditions, both on
behalf of the companies' interest and on behalf of the interest
of the assured, with the absence of petty or carping criticism
or ill-feeling.
New Manual of Rates
During the month of January there were completed and
distributed the new manuals of rates. The magnitude of this
W'ork alone is shown by the fact that an order for one com-
pany amounted to over 1,000 copies.
Dur-ing the year steps were taken, and are being followed
up, with a view to co-ordinating the requirements of the bur-
glary companies to the police and fire departments of various
cities. Previously it frequently happened that a burglary
company on inspection of a risk would make certain recom-
mendations as to the protection of windows and doors, which
recommendation would meet with the full approval of the
police only to be ordered removed on instructions from the
fire department of the city. In this branch of the work alone
there is a vast amount of constructive work yet to be accom-
plished.
In the new manual of rates it is required under residen-
tial burglary insurance that the assured state the amount Df
fire insurance which he carries, and places an amount of not
less than 50 per cent, of the fire insurance carried on the first'
item of the burglary policy, termed in the policy "Class 'A' "
property, which consists of the following articles: "Class 'A'
property consists of articles of gold and sterling silver, plated
ware, watches, precious stones, jewelry, ti-inkets, bric-a-brac,
paintings, etchings, engravings, wearing apparel, furs, Ori-
ental rugs, wines and liquors."
There is another ruling that no policy shall cover property
in "Class 'A' " unless it also covers property in "Class 'B' "
for at least $1,000. "Class 'B' property consists of household
goods and personal property, excluding property in Class 'A'
and excluding coin and stamp collections, medals, manuscripts,
plans, patterns, models, designs, deeds and other documents,
books and other records of business or affairs."
Avoids Co-insurance Clause
These requirements are based on the experience of the
companies and were made in order to avoid the necessity of
inserting in their policies the co-insurance clause, and to dis-
tribute the cost fairly amongst the assured of all classes of
wealth. It can readily be seen that on burglary insurance for
only $1,000 covering property in a residence where the con-
tents are valued at perhaps $40,000 or $50,000 should a loss
occur it would mean a total loss on account of the extremely
valuable character of the contents in such a residence, while
a residence with contents valued at only $3,000 the proportion-
ate loss in case of burglary would be negligible in compai'ison
with the former case cited.
The result of the old system in actual practice was that
the small owner was being penalized at the expense of the
large owner and under such a system any future reduction in
residence rates was almost an impossibility.
Under the new system the liability of the company and
the premium received are in direct proportion to the value of
the contents of the residence insured and closely follows the
English system, and in the opinion of the underwriters will
ultimately enable the companies to show such an experience
that a reduction of rates on residence burglary and theft poli-
cies will be possible, and it may be stated in passing that ap-
proximately 75 per cent, of all the householders in England
carry burglary insurance.
In its initial stages a great deal of opposition was met on
the part of the well-to-do man, who previously only carried a
$1,000 policy, on account of the increased cost to him under
the new system of residence theft insurance, but in the major-
ity of cases when actual facts were explained the assured
readily recognized the justice of the rating methods adopted
and accepted willingly the increased covering. One feature
which is often overlooked by owners of residences is that fre-
quently the loss of articles stolen and removed from the prem-
ises is less than the actual malicious damage and injury to
the valuable but immovable property within the range of the
trieves' tools. Costly furniture torn open with jimmies, valu-
able pictures ruined, bric-a-brac smashed, and another com-
mon form of theft, the complete removal during vacancies of
all lead pipe and brass fixtures, so often the prey of the lower
grades of housebreakers.
It has been asked why the companies do not simply ask
for a valuation of the furniture instead of using fire iVisurance
as a basis, and the answer to that question is that the English
system has proven best in actual experience for both the com-
panies and the assured, and after due consideration was adopt-
ed by the managers as a model to follow, practical experience
ha-ving shown that in England burglary insurance can be sold
cheaper than anywhere else in the world, and in that country
more people take advantage of it.
Agents' Commissions Revised
During the year the association approached the managers
of the different companies on the question of agents' commis-
sions, having in mind the recommendations made by Judge
Hasten in his report on insurance conditions, and an arrange-
ment was consummated by which the companies have brought
agents' commissions into line with the honorable judge's re-
port.
The association is now engaged in studying a method of
adding the co-insurance feature to mercantile risks, and when
completed, together with the complete revision of the mercan-
tile classifications, should materially improve the conditions in
this class of insurance, which was in danger of becoming en-
tirely too hazardous for the companies to engage in under the
old system of rating.
The association has arranged a system by which the own-
ers of summer residences can obtain insurance, a class of in-
surance which it was practically impossible to obtain pre-
viously, and as this feature becomes more widely known it will
be found that most summer residence owners will be glad to
avail themselves of the opportunity of covering their property
against burglary.
The annual meeting was held on June 18th, 1920, at which
the following officers were unanimously elected for the coming
year: President, A. E. Kirkpatrick; Montreal vice-president, R.
■ Welch; Toronto vice-president, W. H. Burgess; treasurer, John
Good; Montreal secretary, T. D. Hutchins; Toronto secretary,
H. G. Humphries. Bureau Committee — Chairman, A. E.
Kirkpatrick; John Emo and J. C. Gagne, of Montreal; F. J.
Lightbourne and C. A. Withers, of Toronto.
January 7, 1921
THE MONETARY TIMES
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iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiini
THE LONDON MUTUAL
FIRE INSURANCE COMPANY
OF CANADA
ESTABLISHED 1859 IN LONDON, ONTARIO
HEAD OFFICE, 33 SCOTT STREET. TORONTO
Claims Paid Over ..... $9,500,000.00
Security for Policyholders ..... 788,490.81
Surplus ....... 358,322.48
FIRE AND AUTOMOBILE INSURANCE
Represented By [
I British Columbia --_______ HOBSON & CO., LIMITED, VANCOUVER i
I Manitoba, Saskatchewan, Alberta - - - CARSON, WILLIAMS & WILLCOX, LIMITED, WINNIPEG I
= Ontario ----__________ HEAD OFFICE, TORONTO I
I Quebec ----_____ Branch Office, W. J. CLEARY, Manag-er, MONTREAL |
I Ask them or our Local Agents for Rates on your Property =
I A. H. C. CARSON - PRESIDENT i
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THE MONETARY TIMES
Volume 66
Three Amendments to Manitoba Insurance Laws
Affidavit Required from Special Broker — Clauses in Life Insurance Act Affec-
ting Beneficiaries are Amended — Miscellaneous Changes in Insurance Law
AT the 1920 session of the Manitoba legislature three amend-
ments to the insurance law of the province were passed.
The first two amended The Manitoba Insurance Act, the first
reading as follows: —
"1. Section 3 of 'The Manitoba Insurance Act,' being
chapter 98 of the Revised Statutes, 1913, as enacted by sec-
tion 2 of chapter 46 of 9 George V, is repealed and the follow
ing substituted therefor: —
"3. Only sections 2, 5, 6, 8, 9, 12 to 20, 44 to 47, sub-
sections (3), (4) and (6) of 51, 52, 53, 64, 72 to 95 of this act
shall apply to a company licensed by the Dominion govern-
ment.
"2. Section 4b of said act as enacted by section 6 of
chapter 33, 5 George V, is amended by striking out the word
'five' in the sixth line thereof and by substituting therefor the
word 'three.'
"3. Paragraph (d) of section 10 of said act is amended
by adding thereto after the word 'vehicle' in the second line
thereof the words 'other than motor vehicles.'
"4. Subsection (5) of section 19 of said act is amended
by striking out the words 'one and one-third per cent.' in the
ninth line thereof and substituting therefor the words 'two per
cent.'
"5. (1) Sub-paragraph (i) of paragraph (b) of section
45 of said act is amended by adding the words 'and in the case
of a company doing accident, sickness or guarantee and surety
insurance' after the word 'Manitoba' in the last line thereof.
"(2) Sub-paragraph (iii) of said paragraph (b) is
amended by striking out the words 'an accident or guarantee
and surety' from the fifth and sixth lines and substituting
therefor the words 'a plate glass insurance.'
Certificate to Partnership
"6. Subsection (2) added to section 81 of the said act
by section 7 of chapter 46 of 9 George V, is hereby repealed
and the following substituted therefor: —
"(2) The certificate of authority issued to a partnership or
firm shall include those of the partners not exceeding three
who devote all their time to the business of the partnership
and not more than one employee of the partnership nominated
for that purpose in writing by the partnership with the written
approval of the superintendent of insurance, and the certificate
of authority issued to a corporation shall include not more
than four officers of such corporation nominated for that pur-
pose by the corporation in writing signed by the president,
secretary or manager of the corporation under its corporate
seal, provided such nomination shall be approved in wTiting
by the superintendent of insurance. Any such nomination
may be revoked at any time and the name of another employee
or officer substituted, upon the written application of the part-
nership or corporation to the superintendent of insurance and
with his approval in writing.
"7. Section 91a of said act as enacted by section 9 of
chapter 46, 9 George V, is amended by striking out the word
'agent' in the ninth line thereof and substituting therefor the
word 'person.'
"8. This act shall come into force on the day it is assent-
ed to."
The second, which relates to affidavits by special brokers,
reads as follows: —
"1. Subsection (2) of section 19 of 'The Manitoba Insur-
ance Act,' bein^ chapter 98 of the Revised Statutes of 1913,
is hereby repealed and the following substituted therefor: —
"(2) In the event of any insurance having been procured
under and by virtue of the said license, there shall be made,
by the special broker, an affidavit which shall be filed in the
office of the superintendent within thirty days after the pro-
curing of such insurance. Such affidavit shall have force and
effect for one year only from the date thereof and shall set
forth that after diligent effort it has been ascertained that
insurance, or sufficient insurance, required to protect the prop-
erty sought to be insured, could not be obtained, or, that such
insurance, or sufficient insurance, could not be obtained at or-
dinary or reasonable rates of premium or on satisfactory
terms from insurance companies duly authorized to carry on
business in Manitoba. But such special broker shall not be
required to file such affidavit if a similar affidavit relative to
the same property has been filed within the preceding twelve
months by any other special broker.
"2. Section 95 of said act, as enacted by section 11 of
chapter 46 of 9 George V, is hereby amended by adding the
following woi'ds: 'Provided that this section shall not affect
mortgages or agreements held on property situate in the City
of Winnipeg.'
"3. This act shall come into force the day it is assented
to."
The third is an amendment to the Life Insurance Act,
reading as follows: —
"1. Section 8 of 'The Life Insui-ance Act,' being chapter
99 of the Revised Statutes of Manitoba, 1913. is hereby amend-
ed by adding at the end thereof the following words: 'but the
assured shall not, except as provided by section 9 of this act,
revoke or alter any disposition made under the provisions of
this act in favor of any one or more of the preferred classes
set out in section 7 of this act except in favor of some one or
more persons within the preferred class, so long as any of the
persons of the preferred class in whose favor the contract or
declaration is made are living.'
"2. Section 15 of the said act is hereby repealed and the
following substituted therefor: —
"15. If in case of a policy of insurance heretofore or
hereafter effected by a man or woman, it is expressed on its
face to be for the benefit of, or has been heretofore or shall be
hereafter under this act appropriated for the benefit of any
person or persons other than his wife or her husband, or his
wife and children, or her husband and children, or his or her
children or any of them, then the insui'ed may, by an instru-
ment in writing attached to or endorsed on the policy or iden-
tifying the same by its number or otherwise, absolutely revoke
the benefit or declaration or appropriation previously made
and apportion the insurance money, or by like instrument from
time to time reapportion the same, or alter or revoke the ben-
efits, or add or substitute new beneficiaries, or divert the in-
surance money wholly or in pai't to himself or his estate, pro-
vided that the insured shall not alter or revoke or divert the
benefit of any person who is a beneficiary for value.
"3. The repeal of said section 15 shall apply to all poli-
cies of insurance existing or future, but shall not affect any
payments which have already been made by any insurance
company in accordance with any revocation, appropriation, re-
appoi'tionment or diversion of the moneys as permitted by said
section 15 before its repeal.
"4. Section 25 of the said act is hereby amended by add-
ing thei'eto the following subsections: —
"(2) Where a contract of insurance is made or declared
to be for the benefit of one or more preferred beneficiaries and
all of them are of full age, they and the assured may surren-
der the contract 'or may assign or dispose of the same either
absolutely or by way of security.
"(3) Where such preferred beneficiaries include children
it shall be sufficient so far as their interests are concerned if
all then living are of full age and join in the surrender or
assignment or disposal, as the case may be.
"(4) Wliere a person is entitled to a benefit only in the
event of the death of another person named as a beneficiary it
shall be sufficient for the purposes of this section if such last
mentioned person joins in the suri'ender, assignment or dis-
posal.
"5. This act shall come into force on the day it is assent-
ed to."
January 7, 1921 THE MONETARY TIMES
INCORPORATED A.D. 1833
British America Assurance Company
FIRE, AUTOMOBILE, MARINE and HAIL INSURANCE
Assets over - - $4,300,000.00
Losses paid since Organization in 1833 over $47,000,000.00
DIRECTORS
W. B. MEIKLE, President and H. C. COX GEO. A. MORROW
General Manager JOHN H. FULTON (New York) Lt.-Col. the Hon.
SIR JOHN AIRD D. B. HANNA FREDERIC NICHOLLS
ROBERT BICKERDIKE (Montreal) E. HAY Brig.-Gen.
Lt.-Col. HENRY BROCK JOHN HOSKIN, K.C., LL.D. SIR HENRY PELLATT, C.V.O.
ALFRED COOPER (London, Eng.) MILLER LASH E. R. WOOD
London Offices : 14 Cornhill, London, E.C.
HEAD OFFICES:
British America Assurance Buildings, Corner Scott and Front Streets, TORONTO.
W. B. MEIKLE E. F. GARROW
President and General Manager Secretary
THE
Canada National Fire Insurance Company
HEAD OFFICE - WINNIPEG, CANADA
Authorized Capital - $3,000,000 Subscribed Capital - $2,050,400
Paid-in Capital - - -$1,825,958 Assets $2,617,350
Surplus to Policyholders, $2,123,543
BO.-\KI) OF DIRKCTOHS
President: Vice-Presidents: Manajjins director :
I. H. G. Rv.s.SKi.1. Major D. E. Si'R.Aiai-;, O.B.K.. F, H. Alexander. W. T. Ai.exa.vukr.
DiRECTOR.S :
E. L. Taylor, K.C. W. J, Boyd. Dr. A. D. Carscallen. S. D. Lazier. F. N. Darke, Regina,
Andrew Gray, Victoria. Col. Tlie Hon .^ C Rutherford. K.C , Edmonton Thos S. McPherson, Victoria.
GENERAL FIRE INSURANCE BUSINESS TRANSACTED
AGENCIES :
TORONTO, ONT. -Lyon & Knowland.
VICTORIA, B.C — R. W. Perry EDMONTON, Alta.— Allan, Killam, McKay, Alberta, Limited
VANCOUVER, B.C.— E.J. Roberts, Rogers Building REGINA, Sask.— Anderson, Lunney & Co., Limited
CALGARY, Alta. -Newton & Nowers SASKATOON, Sa.k.— Trotter & Stewart Co., Ltd.
General Agent, NOVA SCOTIA A. J. Bell & Co., HALIFAX
A CANADIAN COMPANY INVESTING ITS FUNDS IN CANADA
THE MONETARY TIMES
Volume 66
FIDELITY AND SURETY UNDERWRITING
Figures for Two Classes Combined in Department's Report —
Emphasis Laid on Preventive Side by Companies
By Henry E. Rawlings
President, Guarantee Company of North America
FIDELITY and surety underwriting are treated as one clas-
sification by the insurance department of the Dominion of
Canada, and the premiums and losses of the respective classi-
fications of underwriting are not shown in the report of the
superintendent, in which he bulks the two under "Guarantee
Insurance" and shows that the total premiums received by all
companies during the year 1919 were $1,138,882, and Utb
amount of claims paid and outstanding at the end of the year
$548,750. There was a fair increase in the premiums received
and somewhat of a decrease in the claims paid and outstand-
ing in comparison with the previous year, which shows favor-
able increase of about $90,000 in general results, so far as
concerns premiums and losses. The expenses of management,
cost of general operation and disbui'sements for commission,
to obtain or retain business, are not dealt with separately by
the superintendent of insurance, but are all charged up as one
under "General disbursements of the respective companies."'
However, I am inclined to the impression that they pretty
well scale down the general results as a whole and have left
only a small margin for most of the companies to carry over
to surplus from their year's fidelity and surety underwriting.
Twenty-one Companies in Business
There are twenty-one companies transacting a guarantee
business in Canada, of which ten are Canadian, six British
and five American. All of these companies transact, in addi-
tion to guarantee insurance, one or another kind of miscel-
laneous casualty business, and all belong to the Canadian
Guarantee Underwriters' Association, with the exception of
one Canadian company and an American company, which are
independent of that association and transact guarantee insur-
ance exclusively.
Fidelity underwriting is an unknown contingency. Declined
cases are a possible loss avoided, and it is on the apparently
good risks that the company pays losses, and sometimes very
large losses, through the defalcations of trusted employees
hitherto considered above suspicion, which are the unfortunate
exceptions where the guarantee company's investigations have
not functioned. Certain companies have, during the past year
or two, been exploiting various new kinds of "bonding proposi-
tions," the convenience of which sometimes appeals to the
employer, but which propositions are absolutely apart from
the fundamentals of suretyship, viz., the completion of appli-
cations and service 6y investigation of risks and periodical
reinvestigation or revision of risks, the effect of which is far
more valuable to the employer for its moral influence upon the
employee covered than the amount of the indemnity in the
contingency of a defalcation, with its attending costs and un-
desirable publicity, which such fundamentals aim to prevent,
and no doubt largely accomplish.
Rates Are at a Minimum
The fidelity clientele of the various companies transacting
fidelity business has become accustomed to the rate established
by competition during past years, and a suggestion to-day of
an increase of rate invariably prompts inquiry by the clientele
either through a broker or direct to the home office of another
company for a rate for the business, with the result, more oi-
less, that present rates remain at the minimum.
One of the companies independent of the association above
referred to has lost a clientele by reason of increasing its rate
in consequence of its experience with the client's business.
On the other hand, it has acquired new clientele from some of
the companies of the association where the experience of that
company with the client's business or its volume would seem
to merit a lower rate than that at which it was being written,
any inconvenience to the employer being offset by the effect
leflected through the completion of new applications by the
employees and the investigations instituted by the company
acquiring the business.
Surety underwriting involves both the moral hazard and
the ability, record and resources of the principal, and losses,
when they have occurred, have been generally the result of a
lack of primary investigation, or bad judgment, or misplaced
confidence, and while apparently the latter seems in some in-
stances to have been the case during the year 1919. on the
whole the general results of some of the companies have been
satisfactory and profitable.
RIOT INSURANCE STILL BEING CARRIED
Many Firms Realize Danger During Coming Year — Chief
Demand is in Larger Centres
By Harold Hampson
Robert Hampson and Son, Ltd., Montreal
IN the year 1919 a large business was done in riot and ex-
plosion insurance, the cities where it was most in demand
being Winnipeg and Toronto, but there was also a considerable
demand in Montreal and in the other leading cities and towns
of the Dominion. This demand was largely due to the trouble
in Winnipeg and the threatened trouble in Toronto. A very
large number of firms who took up insurance then are contin-
uing to carry it, realizing that there is grave danger of trou-
ble on account of the numbers that are likely to be unemployed
during the winter. The rates charged for this form of insur-
ance by the few companies who write it are very low, except
in times of actual or threatened strikes. It is surprising that
more Canadian firms do not carry it. In the States this class
of insurance is in very general demand and large numbers of
firms look upon it as being very nearly as important as fire
insurance to them.
The great explosion in Wall street was a striking (I do
not want to be guilty of a pun) illustration of the necessity of
this form of insurance.
MARINE INSURANCE WAS FORTUNATE
No disaster is found in the records of shipping on the
great lakes in 1920, in spite of the fact that the navigation
season was long. In the second week of November the mar-
kets of the grain trade across the Atlantic had only begun to
draw upon the elevator stores at the head of the lakes. In-
surance on steel boats dates to November 30, and where good
reasons were given the policies were extended for another ten
days. This brought the season up to December 10, and meant
that millions of bushels more were moved from Canadian ele-
vators to Atlantic boats at Montreal. Of course, bad weather
held up some of the cargo boats temporarily, but it has to be
a "pretty bad storm" that makes a steel freighter on the great
lakes seek shelter. Risk to navigation late in the year was
admitted by the marine men spoken to, but they all declared
the steamers must be run to handle the grain trade.
It is the very general opinion that the season on the
lakes has been a record one, every freighter carrying to
caacity on each trip. The coal trade has been heavy, and it is
now a forecast that the grain movement surpassed any other
year.
UNITED STATES LIFE BUSINESS EXPANDING
Seven and a half billion dollars of life insurance was
bought in 1919 in the United States. Indications are that
an equal amount has been written in the first ten months of
, 1920, says the "Travelers' Protection and Agents' Record,"
issued by the Travelers' .Insurance Co. "Significant figures.
In two and a half years at this rate the amount of new life
insurance will equal the entire capital stock and bonded in-
debtedness of all the railroads in the countrv."
INDUSTRIAL
Jiiniiiuy /, 11)31
THE MONETARY TIMES
facie 31 1
THE MONETARY TIMES
Volume 06
VANCOUVER
British Columbia
As an
Industrial
Location
As a
Trade
Centre
As a
Tourist
Resort
The Canadian
Present and
City with a Great
a Wonderful Future
AMPLE supply of Raw Materials — from Forest, Sea
and Mines. Abundant Fuel supply at all times
with easy transportation. Electric Power in abun-
dance at reasonable cost — from great Hydro-Electric
plants. Industrial Sites available on long leases and on
favorable terms.
A Water Supply unequalled for purity.
Outdoor work possible practically the year round.
Assistance to legitimate industries granted by Province.
0
NE of the finest harbors in the world — Open the year
round. The Canadian Gateway for Trans-Pacific
trade.
Regular Steamship service to the Orient, to Australia,
New Zealand and India — to Atlantic ports — to the Old
Country.
Pacific Coast terminus of Canadian and States transcon-
tinental railways.
WONDERFUL climate — -average temperature for past
11 years, 51 degrees — In Summer no extreme heat
with nights always cool — The pre;nier Winter
resort of Canada with outdoor life possible with comfort
practically all Winter.
The centre of magnificent natural attractions — all within
a few miles of city's centre — Hundreds of miles of scenic
motor drives — Golfing — Hunting — Fishing.
The peer of any city in Canada as a Vacation Resort.
for detailed information — specifying just what informa-
'esired—and prompt attention will be given your enquiry.
VANCOUVER PUBLICITY BUREAU (J. R. Davison, Manager)
330 Seymour Street, Vancouver, B.C.
VISIT VANCOUVER ON YOUR VACATION
TRIP-SEE FOR YOURSELF
I
January 7, 1921
THE MONETARY TIMES
Production Caught Up With Demand in 1920
In Some Industries Supply Overtook Demand, and Dullness Followed—
Banks Were First to Recognize Changed Conditions— Basic Industries
Still Sound — Coal and Power Supplies Were Important Factors
By W. L. EDMONDS.
THE experiences of the manufacturing industry of Canada
during 1920 were characterized by much variety, many
sharp contrasts, and numerous problems.
During the first half of the year the demand for practi-
cally all factory products was in excess of the supply. Over-
time was common and night as well as day shifts were not
infrequent. And in spite of this many of the factories were
even months behind in the filling of orders. That a contrib-
uting cause to the delay in filling orders was the general scar-
city of raw materials experienced by many of the leading in-
dustries there can be no doubt. That it was also a contribut-
ing cause to the excessively high prices which obtained is
equally certain, many lines of raw materials, and particularly
those appertaining to steel, being only obtainable on pa.sTnent
of premiums for anything approaching prompt delivery.
The Turn in the Tide
To students of economics it was obvious that this state of
affairs could not go on indefinitely, for not only were com-
modity prices, already abnormally high, still under process of
inflation, but an undue strain was being made upon the re-
sources of the banks in oi'der to provide temporary capital for
both industrial corporations and mercantile houses. Further-
more, the ascending scale of commodity prices was grasped by
labor as an excuse for demanding still higher wages.
The turn in the tide of industrial activity began to mani-
fest itself in the early months of the summer, when the banks,
in the United States as well as in Canada, decided that heroic
measures must be taken to curtail credit by declining to ad-
vance loans except for what borrowers could prove were legit-
imate business enterprises. That which savored of speculative
ventures were tabooed.
It will thus be seen that the modification in industrial
activity experienced during the latter half of the year is di-
rectlv due, not to an absence of orders for factory products,
but to a curtailment, and a nccessaiy one, in credit. In other
words, the cause of credit curtailment was not business de-
pression, as is usually the case, but for the purpose of regulat-
ing the financial resources of the country in order that hard
times might be averted. In this respect, therefore, this ex-
perience is unique.
Present Banking Accommodation
That the banks were wise in exercising a closer scrutiny
in respect to credit accommodation there can be no doubt.
The results so far apparent have justified it. Not only has it
started commodity prices on the downward trend, a desidera-
tum for which manufacturers and merchants, as well as con-
sumers, were seeking, but it has enabled the banks to con-
serve their resources for financing the actual business necessi-
ties of the country, in the performance of which they might
have been seriously handicapped, particularly in view of the
financing entailed in moving the bountiful crops harvested.
One has only to glance at the figures contained in the
September bank returns, the latest at the time , of writing
available, to be convinced of this.
Naturally the main factor in regulating the loans which
the banks can furnish is the deposits they have on hand. At
the end of Sejdembor the total amount on deposit in the char-
tered banks of the Dominion was 31,947,481,000. As the com-
mercial loans at the same time stood at $1,417,.520.000, it will
be seen that the proportion of the latter to the former was
72.78 per cent. At the corresponding time the previous year
the proportion of commercial loans to deposits was 56..j6 per
cent., a difference of 16.42 points in favor of September, 1920.
It will thus be seen that in spite of the economy practiced in
respect to loans for ventures of a speculative nature the funds
of the banks have been drawn upon to a much greater extent
than a year ago. The actual increase, as compared with Sep-
tember, 1919, was $358,945,554, while the increase in total de-
posits during the same period was $69,300,272. In other
words, while there was an increase during the twelve months
of 3.63 per cent, in total deposits that in commercial loans
was nearly 34 per cent. How much of this increase can be
credited to loans advanced for moving the larger crops that
the country experienced in 1920 cannot, of course, be gathered
from the returns. But that the banks have been over-conser-
vative in their advances in the shape of commercial loans is
not indicated by the above figures.
That certain industries during the last few months have,
and still are, feeling the pinch of inadequate accommodation
from the banks there can be no doubt. But so far as can be
gathered they are mostly confined to either those whose prod-
ucts are classified as luxuries or those which, pai-tly on ac-
count of the mild fall and partly due to the tendency of re-
tailers and consumers to defer purchasing until lower prices
obtain, find themselves with heavy stocks 6n hand. Indus-
tries of this kind, finding their financial accommodation cur-
tailed, are of necessity being compelled to inaugurate special
sales at cut prices in order to relieve their necessities. This
is particularly marked in the clothing industry.
The Basic Industries
Fortunately the basic industries as a whole have so far
suffered but little since the period of readjustment set in.
Certain of the iron and steel plants, as a result of the
tighter money market and the consequent higher interest
rates obtaining, have found it necessary to discontinue large
expansions, both actually under way and contemplated. But
there has by no means been a total cessation of new additions
to plants during the year. The most important new plant
bi'ought under operaticfn during the year was that at Sydney
for the production of ship plates, the first of its kind in the
Dominion, and erected at a cost of about five million dollars.
Then, besides other additions, the steel works at Hamilton
have recently put into operation a plant for the production of
benzol. Further, although on a less extensive scale than
anticipated, construction work is still going on at the site of
the contemplated big steel plant at Ojibway on the Canadian
side of the Detroit river.
As far as actual business is concerned the steel companies
of the country have so far at least little or no cause for com-
plaint. The demand may not be as heavy as it was for cer-
tain lines, but on the other hand there are other lines, and
particularly sheets, in which the mills are still behind in filling
orders. Recent official statements indicate that not only will
total production for 1920 exceed that of 1919, but that the
mills have substantial orders on their books for future deliv-
ery. The steel industry is therefore in anything but a bad
way.
As to what 1921 may have in store for the steel industr>'
time only can determine. But of one thing we may be as-
suied, and that is that the requirements of the country will
be very great. The railways, which are the largest purchasers
of steel in the country, are in absolute need of additional
equipment of various kinds. And the fact that the govern-
ment and the Canadian Pacific now owTi between them the
country's railways ensures that the funds necessary to the
financing of new equipment will be forthcoming, and particu-
larly in view of the higher freight and passenger rates now
obtaining.
224
THE MONETARY TIMES
Hardware Manufacturing
The hardware manufacturing industries have been active-
ly employed throughout the year, and at the time of writing
at least some of the large plants arc still running over time,
although nearly altogether on immediate business. As far as
business for future delivery is concerned very few orders are
being booked, there being a disposition to await a modification
of prices, w-hich. as far as many lines of hardware ai-e con-
cerned, promises to be a slow process. That a downward trend
is about due the manufacturers themselves concede, but on the
other band they are being handicapped by the continued scar-
city and high prices of inany lines of raw material and cost
of labor, although in respect to the latter increased efficiency
is bringing down the cost somewhat, notwithstanding that the
rate of wages remains pi-actically without change.
It appears to be the general opinion among manufacturers
of hardware that, in view of the general scarcity of dwellings
and the deferred construction of large buildings of various
descriptions, orders for future delivery will materially improve
with the stabilization of prices on a lower basis.
The Paper and Pulp Industry
As far as the paper and pulp industry is concerned there
is' yet wanting evidence of a recession in trade. During the
year s.everal of the mills have 'found it necessary to make sub-
stantial additions to plant. But notwithstanding the much
larger output thereby obtained the demand, both for paper
and pulp, exceeds the supply. Approximately 85 per cent, of
the country's output of newsprint is exported, and this propor-
tion could undoubtedly be increased, the American market still
having an inadequate supply. The export trade in pulp and
newsprint during the twelve months ending September had an
aggregate value of $134,919,213, an increase of $57,308,249
over the corresponding period of 1919.
The Textile Industries
Manufacturers of woollen textiles have experienced good
business throughout the year, and although the quietness of
the last few months in the home trade has naturally tended to
modify the volume of output, export orders have kept the
various mills well employed. Exports of woollens for the first
five months of the fiscal year, the latest period for which de-
tail figures are available, had a value of $1,267,659, com-
pared with $359,216 the corresponding period of the previous
year. In cotton textiles the mills are still fairly well em-
ployed on orders for immediate delivery. Buyers on future
account are disposed to defer placing orders, and the mills are
in the meantime making an effort to reduce stocks in raw ma-
terial as well as in the finished product. During the current
fiscal year increased competition from foreign manufacturers
has been experienced, as is evidenced by the trade returns.
On the other hand, home manufacturers have been experienc-
ing an increase in their exports, although by no means corre-
sponding to the gain in the importation of foreign-made cot-
ton textiles.
Taking all descriptions of textiles and their products the
manufacturers during the twelve months ending September
did an export trade amounting in the aggregate to $18,872,223,
as compared with $16,358,647 the corresponding period of 1919.
Boot and Shoe Industry
The boot and shoe industry has naturally suffered from
the tendency of both merchants and consumers to defer pur-
chasing in anticipation of lower prices. In some instances
manufacturers found it expedient to close factories for a sea-
son. Within the last few weeks, however, an improvement
has been experienced, and particularly by the factories in
Ontario. But while there has been a lull in the home trade,
the foreign, on the other hand, has experienced an expansion,
the exports for the first five months of the current fiscal year
amounting to $5,679,720. as against $1,130,334 for the corre-
sponding period of the previous year.
The lull experienced by the boot and shoe trade naturally
had an adverse influence on the leather industry. But it, too,
has found g. substantial measure of compensation in the
foreign trade, the exports of sole and upper leather for the
five-month period having a value of $10,194,689, compared with
$4,383,970 the corresponding period of 1919.
The Flour-Milling Industry
Conditions have been rather unsatisfactory to the milling
industry practically throughout the whole year owing to the
decline in business on export account, there only having been
shipped abi'oad during the twelve months ending September
5,419,857 barrels, compared with 9,747,940 and 10,329,988 bar- .
rels for the corresponding periods of the two previous years.
The annual statements of the large milling corporations show,
however, that in spite of a lessened output and smaller net
earnings, financially they are in a strong position.
Adverse Influences
The adverse influences which the Canadian manufacturing
industry as a whole experienced during the latter half of 1920
were by no means confined to declines in output and scarcity
of raw material. With rare exceptions there was also experi-
enced a shortage of coal and of electric energy. Difficulties
in this respect were experienced by many manufacturing
plants throughout the year. Special federal taxation was an-
other disturbing factor as far as the financial aspect was con-
cerned. Manufacturers are by no means disposed to shirk
their responsibilities in respect to taxation, but when it is of
such a nature as to hamper expansion and discourage capital
investment they are of the opinion that attention should be
given to devising ways and means of raising the necessary
revenue that would be less injurious in its effect upon the
manufacturing industries of the country.
Outlook for the Future
That the present lull which industry is experiencing as a
result of the advent of that period of readjustment which
everyone concedes to be a necessity will extend over a consid-
erable period of time is not the opinion of either bankers or
manufacturers. That there are many sound reasons for such
conclusion there can be no doubt. In the first place there are
the crops of 1920 to be taken into consideration. Not only
was the yield larger than in any year since 1915, but from the
standpoint of value probably the best in the history of the
Dominion. The value of the wheat crop alone, estimated at
about $700,000,000, exceeds by about $61,000,000 the aggregate
value of all field crops in 1914, while the acreage under culti-
vation in the Dominion has increased during the six-year
period by 75 per cent. That 1921 is likely to experience a
further and a substantial increase in the acreage there can
scarcely be any doubt, particularly in view of the gratifying
experience of the past year, and that immigration swelled to
about 190,000, as against but 57,700 in 1919. And this in-
crease in immigration not only means moie farme -s, it
means more capital, as a great many of those who came into
the country last year were provided with funds for invest-
ment in agricultural lands.
In respect to the financial resources of the Dominion the
situation is anything but discouraging. The manufacturing
coi-porations are infinitely stronger in working capital than
they were five or six years ago. The same is to be said of
the banks both in respect to capital and reserves, while the
deposits of the public, notwithstanding subscriptions to gov-
ernment and other securities amounting in the aggregate to
approximately $2,250,000,000, are in excess of sLx years ago
by over 92 per cent.
Canada is adjusting itself to new industrial and more nor-
mal conditions, and not to industrial depression.
More than half a million barrels of apples have been
shipped from Halifax so far this season. During November
125,000 barrels were shipped to the United Kingdom. Three
steamers which sailed this month took away 54,000 barrels.
January 7, 1921
THE MONETARY TIMES
Efficient Forest Management Essential
Depletion of Forests of Eastern States has Multiplied Value of Canada's
Timbered Areas — Repetition of United States Experience Must be Avoided
—While Forest Areas Have Decreased, Values Have Risen Rapidly
By JAMES WHITE
Deputy Head, Commission of Conservation
A FEW years ago, it was a favorite strategy in after-dinner
and kindred oratory to dilate upon the vastness of
Canada's natural resources. Sweeping assertions, liberally
adorned with such adjectives as "boundless," "unlimited," and
"inexhaustible," seldom failed to evoke applause. The ex-
pansive mood usually lingered longest and most fondly over
the subject of forests. The vision of endless stretches of
virgin forests had a peculiarly powerful grip upon the imag-
ination— it had grandeur that commandeered all the super-
latives of the orator's vocabulary. It was, in short, an ideal
talking point. Only eight years ago, a prominent public
man stated on the public platform that Canada had "an un-
broken belt of timber 400 to 500 miles wide and 4,000 miles
long e.xtending from the Atlantic to the Pacific." When a
later speaker took exception to this statement, it was evi-
dent that his correction received practically no credence by
the audience. The mental attitude of this audience was
typical of Canadians in general.
N'ew Light on Forest Resources
To-day, the person who would undertake publicly to de-
scribe Canada's forest resources as "boundless" or "inex-
haustible" would receive severe criticism. He would stamp
himself as being either ignorant or irresponsible, and his
statements would be greeted with awkward questions rather
than applause.
Why the change? It is not that Canada actually lacks
enormous forest resources — she is rich in both saw-timber
and pul])wood species, and will be for many years to come —
for all time, in fact, if only we are willing to take the trouble
to have it so. There need be no misgiving on that score.
The point is, however, that great as are our forest resources,
they never justified the extravagant assumptions that form-
erly found common acceptance. Those assumptions were the
natural fruit of ignorance. With the exception of a few
clear-headed students of the situation, we did not know
enough about the actual extent of Canada's timber supplies
to warrant making an estimate of their total. Consequently,
the accepted estimates were purely guesswork and were
bound to be misleading. The student lacked data upon
which to found an accurate estimate though he had enough
information to demonstrate to his own satisfaction that the
accepted figures were grossly exaggerated. A second and
equally potent factor in propagating the idea that our forest
wealth was inexhaustible was that few had the slightest
conception of the rapidity with which even the most magni-
ficent timber resources can be depleted. On both of these
points — the real extent of our forest wealth, and the rate
at which it is being depleted through cutting, unnecessary
waste, fire, windfall, in.sects and fungi — we have gained much
definite information in the past decade, and it has had the
salutary effect of bringing us down to earth when discussing
the forest resources of the Dominion.
United States Experience
We are still far from having an adequate idea of the
extent of these resources, but we are certain that they are
not inexhaustible. Any doubts on that point are entirely dis-
sipated by a review of the experience of the United States.
The situation there has given rise to considerable concern
and has recently been the subject of careful study. The
Forest Service reports that three-fifths of the original tim-
ber of the United States is gone, and that the country is
using timber four times as fast as it is being grown. One-
half of the timber left is in the three Pacific Coast states.
The total stand of saw-timber in the New England states
is not more than one-eighth of the original stand, while the
pine forests of the lake states have been reduced from 350
billion feet to less than 8 billion.
Advantageous Effect Upon Canada
Thus far, the effects of the comparative depletion of the
timber supplies of the eastern states have been extremely
beneficial to Canada. It has been largely responsible for
the recent immense expansion of our pulp and paper indus-
try. Coincidcntly with the rapid depletion of native timber
supplies, there has been in the United States an unprece-
dented growth in the volume of advertising and in the amount
of newsprint consumed, to say nothing of exports, which
amount to a handsome total. The publishing business of the
United States has reached such proportions that the forests
of the eastern and middle western states, where nearly all
the pulp and paper mills are situated, cannot satisfy its
voracious appetite for newsprint, and heavy imports of pulp-
wood, pulp and paper from Canada have resulted.
As late as 1909, the United States was self-supporting
in newsprint production. By 1919, they had become de-
pendent upon imports for approximately two-thirds of their
newsprint or the raw material for its manufacture. Can-
ada's resources have fortunately enabled us to meet the
American requirements. The figures tell the tale unmistak-
ably. In 1910, Canada manufactured 1(51,000 tons of news-
print and exported 25,000 tons. By last year our output
had risen over 400 per cent, to 808,000 tons and our exports
to (5i.!4,000 tons. The figures for the nine months ending Sept-
ember oO indicate an exportation during 1920 aggregating
700,000 tons. In paper, pulp and pulpwood, we are supplying
in raw or finished form about 65 per cent, of the newsprint
used by the United States.
So far, excellent. The Dominion has benefited im-
mensely. For many years our splendid timber areas, par-
ticularly of pulpwood species, suffered from under-develop-
ment. At the same time, they were subjected to steady im-
pairment through heavy annual fire losses. In addition, the
low timber vaJues put a premium on extravagant methods
of exploitation — in fact compelled them. Close utilization
could not be practised because only the higher grades of
timber and the more valuable species could be taken out at
a profit. It was of little avail to advocate the practice of
scientific forestry when stumpage values were so low that
the additional expense involved would have forced the woods
operators to cease operations. It has been the history of
new countries the world over that tremendous waste alway
accompanied the exploitation of virgin forest areas, and that
the pinch of hard necessity must be felt before either gov-
ernments, corporations or individuals are willing to make
the present financial sacrifice involved in the practice of
forestry. That pinch is now being felt in the United States,
and the country is at last becoming thoroughly aroused to
the imperative necessity for the adoption of a national pro-
gramme of forestry.
In Canada, developments have naturally been somewhat
slower, but, with the rapidly increasing development of the
pulp and paper industry in our eastern pi-ovinces, the pinch
of waning supplies accessible to transportation is likewise
beginning to be felt, and it 'behooves all good Canadians to
take a personal interest, before it is too late, in seeing that
really adequate measures of forest conservation are taken,
226
THE MONETARY TIMES
lest this country tind itself in the same unenviable position
as now do the eastern and southern states. The situation
can still be saved, but we must do a good deal more than is
being done at present.
Within an incredibly short period, Canada's pulp and.
paper industry has attained gigantic proportions. Appar-
ently, the only limit to its expansion is that set by the extent
of our readily accessible supplies of timber and their ca-
pacity to reproduce themselves. Not only does the industry
afford profitable employment to capital and labor, but, by
virtue of the volume it adds to our export trade, it has be-
come one of the prime factors contributing to the economic
strength of the Dominion. It is a national asset of excep-
tional importance.
Increased Value of Timbered Areas
That is not the sole benefit we have derived. The
scarcity of American pulpwood supplies, or, more properly,
the tremendously increased demand for paper and paper pro-
ducts— for American mills have steadily increased their out-
put, although still to a wholly inadequate degree — has ren-
dered a second inestimable service to Canada. Imagine what
would happen to the values of farm lands in our prairie
provinces if the United States suddenly found itself com-
pelled to rely upon imports for over half of her wheat re-
quirements. That is essentially what has happened in regard
to newsprint supplies. Our vast areas timbered with pulp-
wood species have experienced an enormous increase in value.
They have been converted from the status of largely poten-
tial value to that of a real commercial asset. They have
been converted into an asset worth conserving, and forest
conservation has finally become a sound business policy in-
stead of a mere desirability. On this basis of necessity, for-
est conservation in Canada will progress more rapidly in one
year than in a decade of preaching berefit of financial appeal.
Forest Conservation Essential
It is now an indisputable. fact — not a fad or theory —
that Canada has reached the point where more effective
methods of forest management must be adopted. Thus far,
the reduction of American timber supplies has been, one
might say, a veritable godsend to the Dominion. But it has
bi-ought us face to face with the danger that the United
States failed to guard against. Let there be no doubt on
this point — that the forests of the Dominion are no less
vulnerable to depletion than were those of the United States.
Moreover, they are to-day bearing the brunt of the demand
of both Canada and the United States for newsprint raw
material. The weight of that burden is enormous. To meet
the requirements of Canada and the United States for the
various classes of paper and paper products for one year
involves, assuming an average stand of 5 cords per acre, the
cutting over of 1,000 square miles of forest in Canada and
1,400 square miles in the United States, quite aside from
the heavy demands for the production of lumber and other
forest products. American newspapers alone have been using
2,000,000 tons of newsprint per annum and would have con-
sumed much greater supplies had they been available earlier
in the current year. While the recent contraction in the
volume of advertising has tended to relieve the scarcity that
had become so acute, the fact remains that to meet even the
normal requirements imposes a tremendous strain upon Can-
ada's timber resources. Every consideration of self-interest
and ordinary business prudence urges the immediate adoption
in Canada of the most efficient methods of forest manage-
ment. It is highly encouraging to note that the situation
here is fundamentally far more favorable to the adoption
of adequate measures of conservation than is the case in
the pulpwood forests of the eastern states. This is because
the great bulk of our forests are still in government owner-
ship, while all but a very small percentage of the forests
of the eastern states have passed into private ownership;
in other words, most of our forests are Crown forests, while
in the eastern states they are nearly all freehold. And it
is a well-established principle that governments, rather than
individuals or even corporations, are in the best position to
practice forestry, due naturally to the long-time element in-
volved in growing timber crops.
Greater Exploitation
It goes without saying that our forests should be ex-
ploited to the limit of their productive capacity, but this
statement should most emphatically be interpreted as mean-
ing a permanent, rather than a purely temporary basis.
Quite obviously, the industrial future of our country de-
mands the most intensive development of its great natural
resources. Always, however, there must be the proviso that
the reproducible resources, such as forests, fish, game and
fur-bearing animals, must be so exploited as not to destroy
them. The keynote of conservation is perpetuation by wise
use.
Our areas of non-agricultural forest land are so vast in
extent that, if they are properly protected and managed, an
enormous future development of all our great wood-using
industries will surely be possible. Without such increased
efficiency in protection and in the proper handling of our
forests, not only will this potential new development be im-
possible, but an actual falling-off of present development
may surely be anticipated with the inevitable exhaustion of
virgin supplies, just as in the eastern and southern states.
The forest is a crop, like other crops, and may be repro-
duced time after time on the same soil. Nature's methods
are wasteful, especially when abetted by the wasteful hano
of man. Properly directed, however, the productive capacity
of our forests may be greatly increased, as has been amply
demonstrated over vast areas of forest lands in .Europe.
The potential productivity of our forests is not being ade-
quately provided for now, although distinct progress has
been and is being made in that direction. The active support
of public-spirited Canadians is urgently needed to hasten
the progress of the movement.
Forest Protection
The first great essential is better, and still better, protec-
tion of' the forest against its great natural enemies — fire in-
sects and disease. In years past, our forest fire losses have been
simply incalculable. In every province, enoi'mous damage
has been done, and our timber stands have been reduced to
a mere fraction of what they once were and may still be
again, with proper care. Full credit must be given the
various forest protective agencies, public and private, for
their splendid efforts. However, they have been working
under tremendous handicaps, with inadequate funds every-
where, and with insufficient and inadequately paid personnel,
and not always free from the blighting influence of politics.
Our annual statistics of forest fire losses show only too
clearly that, taking the country as a whole, we are still a long
way from the goal of reasonably adequate protection from
forest fires. The same is still more true with regard to losses
caused by forest insects and fungous diseases, which destroy
even more timber every year than do the fires. The Ento-
mological Branch is doing splendid work in the investiga-
tion of forest insects, but only to a very limited extent
have actual control measures yet been found practicable. In
tree diseases, practically nothing is being done.
Silvicultural Practice
After undertaking to save what is left of our forest from
useless destruction, particularly by fire, the prime considera-
tion should be to ensure that cut-over lands are left in a con-
dition to produce another crop of timber. This means the
general practice of scientific forestry, and will require the
services of greatly increased staffs of thoroughly trained
and experienced foresters.
Rigid adherence to a diameter limit in regulating cutting
operations is now generally accepted as being inadequate
to provide for a future crop of valuable species. The lack
of any regulation may be observed in the southern states,
where, according to government reports, 5,000 sawmills must
January 7, 1921
THE MONETARY TIMES
go out of business in the next three years for lack of raw
material.
If the future of our industrial development is to be safe-
guarded, as it must be, we shall have to reinvest a materially
larger part of our forest revenues in the forest to ensure
its perpetuation. This principle is fully recognized in Euro-
pean forestry practice. We must get away from the idea
of seeking only the greatest immediate profit, with little or
no conscious attempt to provide for the time when virgin
supplies will be exhausted.
In our mixed forests, such as provide the bulk of our
pulpwood, present methods of cutting tend to convert cut-
over areas more and more into hardwood forests, decreasing-
ly valuable for pulpwood purposes. Incidentally, the prob-
lem of transportation of hardwoods must be solved, so that
these species may be utilized on the more remote areas, thus
giving the young coniferous growth a reasonable chance to
grow to maturity. Hardwoods do not float for great dis-
tances, so that these species are now largely left standing
to crowd out their more valuable coniferous neighbors.
Conditions vary so widely that no general rules can be
laid down as to what procedure should be followed in the
regulation of cutting operations. A great deal of research
in the forest is still necessary, and in this the Commission
of Conservation has made a beginning, as have also a num-
ber of the other forestry organizations throughout the
country. We have specialized particularly in the study of
conditions of natural regeneration upon cut-over pulpwood
lands in co-operation with a number of the leading pulp and
paper companies. The object of this work is to build up
gradually a body of specific information to serve, in part, as
a foundation for the future management of such areas along
correct lines.
There has been much discussion of the necessity for
forest planting. Unquestionably, a great deal of planting must
be done, particularly upon the more accessible lands which
have been devastated by repeated fires. This, however, is a
laborious, slow and costly process, and should not by any
means be regarded as a general substitute for the practice
of forestry upon the great bulk of our forest area. Nature
will accomplish wonders in the restocking of our cut-over
forests, providing we work in harmony with her laws in-
stead of disregarding them.
It all comes down to a question of having adequate
staffs of properly trained and thoroughly experienced for-
esters, who know all that is to be known about the behaviour
of our tree species under the varying conditions, and are in
a position to decide in each particular case what method of
treatment should be adopted to secure the desired results.
This is an age of specialists, but the specialist in forestry
has, for the most part, yet to make his mark upon the actual
practice of his profession in Canada. This profession is a
new one on this continent, though it is thoroughly well estab-
lished and greatly respected in Europe. In its recognition
here lies the future of our forest industries.
Appeal of Forest Conservation
In the final analysis, the practical working out of effi-
cient forest management, or of any other policy of conser-
vation, is largely in the hands of the individual citizen. Any
government department or commission that fails to enlist
his sympathy and active support is doomed to an extremely
limited measure of success, notwithstanding that govern-
ments, as the custodians of Crown lands, are directly and
primarily responsible for their proper handling, as well as
for the determination of public policy with regard to all
lands. In regard to forest conservation, the organization of
public support is facilitated by the fact that the question
directly affects the pocketbook of practically every member
of the community. I do not know of any other single eco-
nomic problem that has such wide ramifications.
It affects every man who wants to build, buy, or rent
a house — or furnish a home. The rising cost of lumber has
been a decided factor in retarding the building of houses
to relieve the housing shortage that has contributed so
largely to the dissatisfaction and unrest that are current
to-day. It affects every man who buys advertising space.
It affects every man who has a dollar invested in forest
industries, and our total capital investments in these enter-
prises approach the stupendous sum of $400,000,000. Finally,
it affects every man employed in such industries, of whom
there are more than 80,000, with many additional thousands
employed in wood-working establishments of one form or
another that are directly dependent upon forest production.
There is no question as to the motive behind forest con-
servation. It is a question purely of hard business sense —
not of sentiment. It concerns not only the lumbering and
the pulp and paper industries, but is of vital interest to the
entire community.
Coal Supply More Plentiful in 1920
Conditions Better Tlian in 1919, but Production in United States, and
Canadian Imports from United States, Not so Great as Previously — Canadian
Output Shows Gradual Increase — Coal Bulletin May be Issued by Government
By S. J. COOK, B.A., A.I.C.
Chief, Mining, Metallurgical and Chemical Division, Dominion Bureau of Statistics, Ottawa
DESPITE much loose talk to the contrary, the Canadian
coal supply situation does not appear alarming, although
prices continue high, and no relief may be expected as yet.
U. S. Production
The production of bituminous coal in the United States
during the 199 working days ending August 21, 1920, and for
the corresponding periods in preceding years, according to
figures supplied by the United States Geological Sur\'ey, was
as follows (in net tons): —
1917 352,011,000
1918 375,395,000
1919 287,270,000
1920 335,967,000
The year 1920, therefore, at August 21, is sixteen million
tons behind 1917, and about thirtv-nine and a half million tons
behind 1918, but is forty-eight and two-thirds million tons
ahead of 1919. In this connection it is pointed out that pro-
duction during 1918 exceeded consumption and provided for
a net addition to consumers' stocks by the end of the year of
approximately 30,000,000 tons. In 1919 the condition was re-
versed; consumption exceeded production and there was a net
draft on stocks of perhaps 40,000.000 tons for the year.
United States production of anthracite shows an output
of $55,712,000 net tons for the calendar year up to August 21,
1920, compared with 52,678,000 for the same period during the
preceding year.
Coal Imported Into Canada
During the past five years Canada has imported from the
United States bituminous coal in quantities varying from nine
million tons in 1915 to seventeen and one-quai-ter million tons
228
THE MONETARY TIMES
Volume 66
in 1918. Anthracite imports varied during the same years
from four millions to five and one-third.
Central Ontario has received, up to June 30, 1920, 99 per
cent, of the average amount of anthracite coal received during
the same six months in the three preceding years; and 106 per
cent, of the amount of anthracite received during the same
period in 1919. The bituminous coal supply is not as good.
Keceipts this year constitute only 89 per cent, of the average
amount for the same si.\ months of the three-year period, but
when taken against last year's receipts, 1920 shows an increase
of 9 per cent, over 1919. Quebec has received this year 110
per cent, of the average amount of anthracite obtained dur-
ing the same six months' period of three years preceding and
119 per cent, of the amount brought in during the six months
of 1919. Receipts of bituminous are lower, the 1920 figures
being 65 per cent, of the three years' average, and 74 per cent,
of 1919 imports.
Total coal imports for Canada show that this year's re-
ceipts of anthracite to June 30 are 101 per cent, of the three
years' average, and 107 per cent, of last year's receipts during
the same six months. Bituminous coal imports into Canada
up to June 30 have fallen this year to 80 per cent, of the aver-
age for the same period during the three preceding years, but
they still add up to 97 per cent, of the i-eceipts during the
first six months last year.
Shortage, But No Cause for Alarm
These data will serve to inform the reader that, while
there is undoubtedly a shortage of coal, it is not such as to
cause undue alarm. There seems no reason why United States
production should not continue on the same scale as at pres-
ent, and with the return of the United States railways to pri-
vate control transportation facilities will probably be consid-
erably augmented so that the losses due to car shortage may
be reduced, and the consequent increased distribution will
make for general relief.
Canadians will never be content to be so absolutely de-
pendent on the United States miner, and a policy looking to
the better development of Canada's coal fields would be ac-
claimed by both miners and consumers. Co-ordination of ef-
fort with the elimination of obsolete methods and unnecessary
local competition in our coal-mining districts would do much
towards Canada's coal problem. But governments, capitalists
and miners have all much progress yet to make before the
necessary spirit of unity will be found pervading all.
Canadian Output
Coal mining in Canada has been subject to many vicissi-
tudes, and yet, in spite of all, the output from Canadian mines
during the first three months of the present year was nearly
half a million tons in excess of the output during the same
three months of 1919, and if production is maintained at the
same rate during the remainder of the year, the Canadian out-
put of each coal-producing province is recorded. Comparative
record at fifteen and a half million tons.
Canadian output figures are given below for the years
1913-1919 inclusive, and for the three years 1917-18-19 the out-
put of each coal-producing province is recorded. Comparative
figures for the first three months of the current year and last
year are also given. All quantities are given in short tons: —
Canadian Output of Coal
1913 15,532,878
1914 13,988,743
1915 1 13,480,196
1916 14,815,703
1917 1918 1919
Nova Scotia 6,345,335 5,836,370 5,790,196
New Brunswick 189,668 266,585 166,377
Saskatchewan 360,623 348,988 379,347
Alberta 4,873,637 6,126,443 4,950,310
British Columbia 2,660,834 2,879,099 2,649,516
Yukon 5,264 2,900
Canada 14,435,361 15,460,385 13,935.745
3 Months — Jan.-Mar.
1919 1920
Nova Scotia 1,448,588 1,593,170
New Brunswick 52,813 32,444
Saskatchewan 80,837 93,563
Alberta 1,416,578 1,732,330
British Columbia 736,748 *675,016
Canada 3,735,564 4,126,523
* Incomplete.
A Coal Supply Bulletin
To meet the very evident need for data regarding output,
exports, imports and movements of coal, and in order that the
general public may be kept accurately informed regarding
Canada's coal supply, it is proposed to issue from the Mining,
Metallurgical and Chemical Division of the Dominion Bureau
of Statistics a "Coal Supply Bulletin" each month, giving all
the available statistics relating to the pi-oduction and distri-
bution of Canadian coal, and the importation and distribution
in Canada of coal from the United States. Owing, however,
to the present extremely high costs of printing, the first num-
ber of this bulletin, which it was proposed to publish at this
time, has been postponed, as changes are now being made in
the multigraph equipment of the bureau, which, when com-
pleted, \yill permit of the printing promptly and at greatly re-
duced cost of such publications as the one proposed.
The Collection of Coal Statistics
During the recent administration of fuel control in Can-
ada under C. A. Magrath, the necessity of maintaining accu-
rate records of all data relating to coal production in this
country and imports from the United States in readily avail-
able tabular form was so emphasized that the principal rec-
ords inaugurated under t>iat regime were merged with those
previously compiled in the Dominion Bureau of Statistics, and
when the mining division of the bureau was established last
year, with the w-riter in charge, the collection of adequate rec-
ords of coal supply was one of the first matters given atten-
tion. The whole of this work is now on a permanent basis,
and the several government departments interested are being
served through the co-ordination of provincial and Dominion
effort, made possible by the bureau. Thus, Coal Supply Bul-
letin, compiled each month from the wealth of data available
in the Mining, Metallurgical and Chemical Divisifin of the
bureau, will provide a new service to the public, and will en-
able the bureau to keep its many correspondents on the
subject of coal promptly and fully informed on the subject.
The critical surveys made from time to time will serve to re-
view and interpret the data recorded.
Organization of Work
Output and disposition of coal figures are obtained in the
bureau through the co-operative assistance of the several pro-
vincial departments administering the mining laws in the coal-
prochicing provinces. This scheme, inaugurated in January.
1920, provides for the collection of production data from the
mine operators by provincial officers, thus ensuring the high-
est degree of reliability in the data collected. Returns are
obtained in duplicate, and one copy, after vise by the provin-
cial officers, is forwarded to Ottawa for compilation with the
data from the other provinces by the trained staff of the
Mining Division. This plan has resulted favorably, not the
least of the advantage gained going to the mine operator, who
now completes one form each month, knowing that he will
not be required to do the same work over several times more
for other government departments. The present arrange-
ments are working so smoothly and w-ell that Coal Supply Bul-
letin will contain output figures complete for the month pre-
ceding its date of publication.
Imports of coal into Canada, and exports therefrom, are
supplied to tlie bureau twice a month through the courtesy of
the Department of Customs. These figures are absolutely up
to date and all coal coming into Canada from the United
States is shown by quantities and kinds for each port of en-
try. Exports of coal produced in Canada are also shown by
quantities shipped through each port of exit.
January 7, 1921
THE MONETARY TIMES
229
Opening of Markets Featured Grain Trade in 1920
Action Taken by Government After Careful Investigation — Enabling Act Gives
Government Power to Interfere if Thought Desirable— State Control Has
Proved Unsatisfactory— Grain Exchange is Meeting Place for Buyer and Seller
By J. E. BOTTERELL
President, Winnipeg Grain Exchange, 1919-20
AT the last three annual meetings of this exchange my
predecessors discussed the effects of the war upon the
grain trade. I desire to continue the story and to note how
the grain trade has been affected during the past year.
Let me say, to begin with, that the Wheat Board, like
the Board of Grain Supervisors, did not in any way inter-
fere with the marketing of coarse grains, with the result
that the grain trade marketed the coarse grains of the Do-
minion without any assistance from the government. So far
iis the past year is cQnc3rned, the grain trade were able
to market the coarse grains of the Dominion successfully.
They fold flax, barley, oats and rye both within the domestic
market and in the markets of the world at prices higher
than had ever been paid for these grains in the history of
the Dominion, and they did so not only without assistance
from the government bodies, but also in spite of considerable
difficulties arising out of the conditions of ocean and lake
tonnage and the international rate of exchange. The grain
trade may rightly claim that their methods have been vindi-
;:ated by their success in the marketing of coarse grains.
Open Trading
Shortly after the last annual meeting, the council of
the exchange took up with the government the matter of
the settlement of the trades that had been made while the
market was open last year, and that had been left out-
standing. They took it up with the government because the
Wheat Board declined to admit any liability whatever. It
was not an easy matter, and the negotiations were long
and expensive. I am glad to be able to say, however, that
the government decided that as it had opened and closed
the market, and as it had commandeered the wheat and
paid firms holding the wheat at prices below what they had
given for the wheat, the government recognized their re-
sponsibility and made arrangements to pay to the firms
concerned amounts covering their actual losses. All is well
that ends well, and while we may feel that the negotiations
were perhaps unduly protracted and expensive, still we are
grateful to the government for recognizing the validity of
contracts legitimately made.
Meteorological Service
Believing that the government would not long continue
to market wheat, and that commercial methods would sooner
or later be restored, your council decided to endeavor to im-
I>rove the facilities and equipment of the exchange so as to
bring it in every respect up to date. With this in view, the
council took up with the Department of Marine and Fisheries
the matter of a Meteorological service in Win'iipeg. The
result, as you know, was that the govei'nment is now operate
ing a Meteorological office within this building that is fur-
nishing us with the weather map and wHh a daily bulletin,
and that it is proceeding to develop this work in a most satis-
factory way. I am sure that every member of the associa-
tion recognizes the importance to the grain trade of having
a good meteorological service within the building, and I am
•An address before the annual meeting of the Winnipeg
Grain Exchange, September 8, 1920. This was Mr. Bot-
terell's address as retiring president. N. L. Leach, vice-
president and general manager of the National Elevator
Co., was elected president for 1920-21, and C. H. Leaman,
manager of the Northern Elevator Co.. was elected vice-
president.
sure that the work done by that office will grow in im-
portance and in the appreciation of the public of the western
provinces.
Sample Markets
In regard to our facilities in general, we are very much
handicapped because this building is not, under present con-
ditions, adequate to the needs of the grain ti-ade in Winni-
peg. There are not offices enough in this building to ac-
commodate all those who desire to rent offices in it. While
we recognize how expensive building operations are at the
present time, and while we have no desire to put any undue
burden upon the Traders' Building Association, still we can-
not but recognize that it would be most desirable to have
sufficient accommodation for all enga'?ed in the grain trade
who desire to rent offices in the building, to give our mem-
bers sufficient accommodation, and at the same time to pro-
vide the exchange as an association with ail the facilities
that it needs.
As you know, the policy of the government before the
outbreak of the war provided for sample trading in grain.
The Canada Grain Act was am.ended with this end in view,'
and a proclamation was issued which completed the legal
preliminaries necessary for the inauguration of sample
trading. The war prevented this inauguration, but the time
has now come when this exchange should provide all facilities
for sample trading, and your council have completed the
plans for this purpose. The trading room will be enlarged,
separate pits have been constructed, one for wheat trading
and the other for trading in coarse grains, all the para-
phernalia necessary has been purchased, a by-law has been
passed, warehouse receipts for use by private terminal ele-
vators have been devised and approved by the Board of
Grain Commissioners, forms for registration of these re-
ceipts have been prepared, and, in a word, facilities for
sample trading will be available within two or three weeks.
It is not necessary that I should do more than point
out that no one is compelled to trade by sample, and that
trading by grade will be continued as "oefore. Probably,
for many years to come, the bulk of trading in this market
will be done on grade, but since trading by sample is now
legal, all the facilities required for such trading will be
available in this exchange, and I for one expect to see
these facilities made use of more and more as time goes on.
Opening the Markets
The most important event that has taken place since
our last meeting was of course the reopening of the wheat
market. After a very mature consideration of the matter
from every point of view, the government decided to restore
free and open ti'ading of wheat on the exchanges, and this
market was opened on the 18th of August.
The government passed a bill which enables it at any
time, should conditions render such a step necessary, to
resume control and reappoint the Canadian Wheat Board.
We, of course, in the trade welcomed the opening of the
market and we did so not merely because our business has
been affected by the long continued method of handling
wheat, but also because we believe that all experience justifies
our confidence that government trading is not as efficient
and economical as private trading.
We do not believe, for instance, that the government's
success in trading in wheat during the war years shows any
superiority whatever to the success of the grain trade in
230
THE MONETARY TIMES
Volume 66
marketing coarse jirrains in spite of the fact that conditions
in regard to transportation and ihternational exchange made
all private trading especially difficult.
And we cannot but believe that it is a significant
thing that all of the alliied countries' governments have
been eager to free trade and commerce in every branch
from the forms of control created during the war years.
It would not be difficult to show that in the allied countries
that have had a leading place in trade and commerce dur-
ing the last fifty or hundred years, government control of
business has not justified itself. Whether you look to Eng-
land or to the United States or to Belgium, or to France or to
Italy, you find the same general result, and you find it in
regard to practically all forms of government trading. You
find it in regard to railways, ships, coal mines, manufactur-
ing and farm produce. It is the same general experience
thrtughout all these countries, and in regard to all these
things, namely, the hastening of decontrol, because the ex-
perience of government operations in all these lines during
the war years has not been justified by the results.
We, therefore, welcomed the decontrol of wheat, not
only because it affects our business, but also and mainly
because we believe that such decontrol is in the public in-
terest.
Government Has Power to Act
It is true that the government retains power to resume
control should conditions require this step. The market
has been open now since the 18th of August, and there is
no sign anywhere so far as our experience in the market is
concerned of impending trouble. The fact is that so far
the market has acted admirably, and what is particularly
encouraging is this, that enquiries for Canadian wheat never
■were so numerous and never came from such a large area.
It is not, I think, sufficiently realized as yet that the market
for our western wheat this year is larger than it has ever
been in the history of this Dominion. Besides our domestic
market in our own Dominion, we have on this side of the
ocean the American market wide open to Canadian wheat
without duty and without embargo, and we have this for
the first time in cur history, and in Europe we have a wider
market than ever, and enquiries are coming to us from every
country in Europe that needs wheat, and most of them do.
That there will be difficulties in marketing of wheat this
year goes without saying. These difficulties will arise from
two sources — one is the financial position generally, and the
other is the international rate of exchange — but it is difficult
to see how government trading would avoid these difficulties
any more than private trading, and it is also difficult to see
why, vrith the demand for wheat as it is and with the world
crop anything but abundant, all such difficulties should not
be surmounted by the trade, and the wheat of western
Canada marketed at the highest prices available.
Market is World-Wide
It should not be forgotten that the general price level
of Canadian wheat is fixed by the conditions of demand and
supply the world over. Russia is not likely to export any
considerable volume of wheat during the next twelve
The Balkan States will have very little to ship.
Australia can ship no wheat until she grows her new crop.
Argentine is shipped out, and the important countries of
Europe must depend for their important supplies for months
to come upon North America. There is a large crop in the
United States of winter wheat, but so far as hard spring
wheat of high milling value is concerned Canada has practi-
cally no competition to meet. ♦
Although the railways may not have been able to de-
velop their equipment during the war years, they are upon
the whole in a healthy condition; certainly they are in much
better shape than the railways of the United States. So far
as the world demand and world supply go, and so far as
transportation conditions both in Canada and on the ocean
go, there are no difficulties in sight in the way of a most
successful marketing of our wheat by private trading, and
from this point of view there can arise no condition which
would justify the resumption of control.
Financing Was Big Problem
The financial condition as stated may lead to some
trouble. Personally, however, I have every confidence that
the banks of this country will be able to finance our wheat,
and that they will not adopt a policy of forcing undue
liquidation. The banks, like the rest of us, recognize the
importance to this western country of securing every cent
that the world conditions justify for our wheat, and the
bankers are not so short-sighted as to adopt such a policy
as forcing sales as would involve this whole country in a
serious loss. It has been hinted that the banks will force
liquidation of wheat and will not permit prices to go be-
yond a certain unstated figure. Personally, I do not be-
lieve there is any iota of truth in this statement, and
so far as the international rate of exchange is concerned,
it is not an insoluble difficulty, and as a matter of fact
since the market opened we have been expoi'ting wheat to
Europe, and since 1916, when government took control of
the trading in wheat, private firms have been able to ex-
poi't the sui-plus coarse grains of Canada in spite of all the
financial difficulties that arose.
There is one clause in the enabling bill, to which, I
think, I should call particular attention, that is clause 2,
section 5, of bill 206, entitled "An Act respecting the Cana-
dian Wheat Board." The clause reads: "Should a board be
appointed under this act after trading in the wheat crop of
1920 has commenced, the board shall have power to adjust
and make payments from the funds of the board in respect
to actual losses incurred by, reason of the bringing into
effect of this act: Provided that before payments are n.ade
such adjustment and payments are approved by the governor-
in-council."
The clause was inserted by the govei'nment at the re-
quest of representatives of the Grain Exchange in order
to prevent a situation arising such as arose last year; and if
an enabling act was necessary at all, we in the grain trade
should recognize that by inserting this clause the govern-
ment created a means of avoiding such troubles as we had
last year.
The New By-Law
The opening of the market under this enabling bill
presented a problem to the association of some difficulty.
Finally, after much consideration, it was decided to enact a
new by-law, a by-law which would hold good until the end
of the coming year. Under this by-law the association has
endowed its governing body, the council, with powers more
absolute than have been given by any exchange on this
continent to its governing board. Under this by-law the
council can, if necessary, get full and exact knowledge of
all trading in all grains through the year, can set a limit
to the amount of trading done by any member or any client,
can withdraw the facilities for future trading, and can not
only close the market in this way but also put into effect
terms of settlement.
We in the grain trade know from experience that a
modern grain exchange simply provides facilities for grain
trading. It provides a meeting-place for buyers and sellers,
a meeting-place in which all who are interested in the financ-
ing, the transporting, warehousing, the marketing and the
milling of grain can find at their disposal all the facilities
that the modern mind has created for the quick and
economical handling of business, and we know also from
experience that in this exchange we have a machinery avail-
able for the marketing of grain that has been so tested
and so improved, that to-day grain is marketed at a lower
percentage of profit than any other produce in the world.
We, too, know just what the financing of grain means; we
know the requirements of credits; we know how necessary-
future trading is as a part of the safe and sound financing
of trading; we know that without such future trading the
marketing of grain could not be done as economically as
it is; and we know at the same time how prevalent are mis-
understandings of our business, and how too often it is
identified w-ith gambling and therefore exposed to most irre-
levent criticisms.
THE MONETARY TIMES
It is difficult to get some people to realize that years
of competition have tested the integi-ity of our members, and
that years of competition within our own market, and be-
tween this market and others, have led to the creation of a
method of marketing grain that not only hafe no superior
but has no equal in the modern commercial world.
FUR INDySTRY HAS EXPANDED RAPIDLY
Large Drop in Prices This Year, However — London Formerly
Dominated Market, But Auction Sales Have Now
Been Established on This Side
THE fur trade has been an integral part of Canada's in-
dustry since the earliest days of the French regime,
when it was a monopoly of the proprietary companies.
Always a source of profit, the development of the last few-
years, the growth of the demand for furs, and the high prices
they have commanded, have increased its value to Canada
very greatly. The value of the present annual production
has been estimated roughly at twenty million dollars.
Until comparatively recently the operations of the trade
in Canada were in the main confined to the actual trapping
of the fur-bearing animals. Most of the furs were exported
in an undressed state to London or the United States, either
for sale at public auctions or consigned to dealers in those
places. A certain proportion were dressed and manufactured
in Canada for home consumptiort.
Exports Have Grown Rapidly
The tigui'es of exports show changes which the war
caused in the world organization of the industry. Extracts
from the statistics of the fiscal years ending March 31, 1914,
1918 and 1919 are as follows:—
UNDRESSED FURS.
To England
To United States
Total exports . . .
Total imports
1014.
3,000,000
2,100,000
5,500,000
2,200,000
1918.
1,000,000
6,300,000
8,000,000
2,900,000
1919.
3,700,000
9,600,000
13,500,000
3,300,000
In the fiscal year 1914 England received the greater
part of our fur exports. By 1918 she was importing 20 per
cent, only, 78 per cent, going to the United States. The per-
centages for 1919 were 27 and 71 respectively, showing that
the activity of the English industry grew steadily. The total
value of fur exports in 1919, as compared to 1918, increased
five and a half million dollars.
Auctions Established Here
Prior to 1915 London was the only place in the world
where furs were sold at public auction. Since the first sale
was held there by the Hudson's Bay Company in 1671, the
English industry grew steadily until at the outbreak of the
war the London market dominated the world's fur trade.
The war changed the situation entirely, and in 1915 sales
were commenced at St. Louis, and in 1917 at New York.
This form of international buying and selling of furs at
auction has been found to be the most economical and effec-
tive method of distribution yet developed.
The auction sales which have been inaugurated at Mont-
real and will probably be held three times a year — winter,
spring and fall — have changed the Canadian fur trade out-
look considerably. A Canadian market has been provided
to which Canadian trappers and dealers can send their furs.
With Russian furs off the market, Canadian furs rank higher
in the aggregate than any in the world. Their presence in
quantity at an auction sale is counted on to attract the most
important of the world's buyers and to ensure a high level
of prices, which is all that is needed to bring furs to Canada
from all parts of the world and to establish Montreal as an
international centre for this trade.
Recent Developments
Prince Edward Island has during the past few years de-
veloped an extensive fur-raising industry. E. H. Raynor,
one of the leading fur ranchers on the Island, recently made
a trip to the chief trading centres in the United States and
Canada, and in an article in the Prince Edward Island
Agriculturist of September 25 reviewed the situation as
follows: —
"In the first place, it is generally known that the fur
trade has experienced a very sharp reaction in market condi-
tions which has caused a big slump in the prices of nearly
all raw furs. Recent conferences with the leading fur dealers
in Canada and the United States have convinced me that
the present unsatisfactory conditions in the fur trade are
caused largely by speculators who boosted the prices of furs
last season away beyond their normat value. Most of the
trading was done among dealers who in turn sold to other
dealers or consigned their merchandise to the large auction
houses with high reserve bids; and, consequently, manu-
facturers and retail merchants declined to purchase large
quantities of merchandise on which prices were so high that
they could not figure to sell to the consumer after the cost of
manufacture and the retail pi'ofit were added to the high
price of the raw article.
"Large stocks of raw furs were thus carried from one
auction sale to the next; and, in the meantime, fresh goods
kept coming on the market until enormous quantities of
merchandise were piled up at exceedingly high prices, and
upon which millions of dollars were borrowed from the banks
to enable the owners to carry it.
Prices Have Slumped
"When the money market began to tighten, shortly
after the spring auction sales, dealers found themselves with
large stocks of high-priced fur on hand, with the banks
calling their loans and with no outlet for the fur, except at a
big discount below cost. The result was that many of the
smaller houses who had come into the business on the rising
fur market found themselves face to face with financial ruin,
and gradually have been forced to the wall. A large num-
ber of commercial failures have added to the difficulties of
the situation, as stocks of raw furs held by bankrupted con-
cerns were put on the market at any price they would
realize; which has had a demoralizing effect on the prices
of all kinds of fur.
"To aggravate the situation, the operators in the large
manufacturing houses in New York walked out on strike
last spring, and up to this time the strike has not been
settled. Little or no fur has been manufactured in a city
which is perhaps the greatest fur-manufacturing centre in
the world. It is hoped by the trade that the strike will be
settled by October first; and, if so, there will be a resump-
tion of business in raw furs, but upon 'a much lower level
of prices than obtained a year ago, declines in some cases
I'unning from 50 to 75 per cent.
"For the reasons given above, the Canadian and American
fur auction houses decided not to hold fall sales, as it was
considered very poor policy to attempt to force large quanti-
ties of high-priced raw furs on the market under present
unsatisfactory conditions, and with bank credits severely
curtailed. To feed the market, such quantities of furs as it
can consume without forcing was felt to be the only method
by which prices could be stabilized and satisfactory conditions
restored."
FISH FRY DISTRIBUTED
Fish hatcheries operated by the fisheries branch, Depart-
ment of Marine and Fisheries, Ottawa, have distributed in
1920 three-fourths of a billion fry in the various provinces
throughout the Dominion. The greatest distribution took
place in the province of Ontario, the number of fr>' distri-
buted being approximately four hundred" million.
2a2
THE MONETARY TIMES
Volume 66
Packers' Output Reduced in Past Year
Feed Shortage Forced Marketing in Early Months — Followed
by Price Decline and Reduction in Number of Stock Sold —
Exports of Packing House Products Have Fallen Off
By S. E. TODD
Secretary, Industrial and Development Council of Canadian Meat Packers
IN I'ound figures the capital invested in the meat packing
industry in Canada is $90,000,000. The latest official
returns, which are for 1918, give the total at $87,000,000,
with a yearly payroll of $12,000,000 for 12,000 employees.
Some seventy-eight firms are reported operating. The ma-
jority of these are by no means large, for out of the seventy-
eight only twenty-four have an annual turnover exceed-
ing $300,000.
A feature of the industry is the largeness of the turn-
over, in proportion to capital. Sales may run from ten to
sixteen times the capital employed in any one year. It is
this which enables the packing industry to work on a strik-
ingly narrow margin of profit.
Dependent Upon Number of Livestock
Packing plants, more specifically than many other in-
dustries, are restricted in their operations by the fluctua-
tions in the supply of their raw material which, being live
animals, cannot be held from year to year to equalize the
flow. An understanding of the livestock supply available
i?, therefore, the key to a year's work in the packing in-
dustry. The past twelve months have been influenced by
exceptional circumstances which are touched upon later.
In the export bacon trade, in which Canada has es-
tablished a high reputation abroad, there has been not
only the factor of uncertainty of supply from the farm, but
an extremely limiting influence in the controlled price set
for the export article in Great Britain. At the close of
the year it is causing as much anxiety as at the beginning.
In the domestic meat trade the figures given below show an
increase in the slaughtering of beef cattle. This, however,
is somewhat off^set by the lower weights of the animals
killed. Had the live weight and yield of the animals re-
main2d what they were in 1917, it is estimated that roundly
40,000 fewer cattle would in 1920 have supplied the s.ame
quantity of meat. Packers state that until the quality of
beef is raised, they cannot expect to secure a large export
trade.
Production Curtailed This Year
Nineteen-twenty was a year which will stand out in
the annals of our livestock. It was remarkable for an acute
shortage of grass and feeding stuffs in the west, which,
combined with bad weather in the late spring, resulted in
a mortality variously estimated from ten to twenty per cent.
of the western cattle. This feed shortage, with consequent
high prices, of all grains, caused farmers to take stock of
the hog situation last fall. Then came government control
of domestic prices for pork products, accompanied by gov-
ernment control of prices for export bacon. This combina-
tion of conditions brought about a stampede to reduce breed-
ing sows to a minimum in the west and to a marked extent
also in Ontario. Thus both lines of production, beef and pork,
were severely curtailed.
Net reductions for the year, according to the returns
of the Dominion Bureau of Statistics, were: —
Cattle (not including milch cows) 590,000
Milch cows '. . . 18,000
Hogs 523,000
The milch cow figures indicate more particularly a trend
in the dairy industry; from the point of view of meat pro-
duction they form a minor part of the supplies to abattoirs.
•A. more gratifying feature of the year's livestock history
is a net increase of 28,000 in the numbers of sheep kept on
farms. It is interesting to observe that, for the first
time, sheep outnumber hogs in the Dominion.
Price Trend Was Downward
These fluctuations in supply naturally had their im-
mediate effect in the prices for stock. There was the in-
evitable quick drop in price when farmers started rushing
fiheir stock to market. Then came the inevitable reaction
with high prices for the remaining animals which had any
quality whatever to recommend them. However, a down-
ward turn was taken in the Ip.-te summer before the record
figures, made in August, 1919, were reached.
1 I9II
1912
1913
1914
1915
1916
1917
1918
1919
ICfJO
7
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Chart A
The following table shows the number of livestock (meat
producing) in the Dominion in the last three years; —
1918 1919 1920
Hogs 4,289,682 4,040,070 3,516,078
Milch cows 3,538,600 3,547,437 3,530,238
Other cattle 6,507,267 6,536,574 5,947,142
Sheep 3,052,748 3,421,958 3,720,783
The accompanying charts "A" and "B" show the move-
ment in numbers each year since 1911.
The total marketings of livestock on public stockyards
are shov/n for three full years, with the total for ten months
of 1920, in the following table of receipts: —
Table "C" — Receipts of Livestock at Principal Markets
Cattle
1917 1918 1919 1920
(10 months)
Toronto 292,972 302,856 371,783 247,545
Montreal— (Pt. St. Ch.) 57,198 62,762 68,217 36,588
(E. End) .. 58,289 65,092 75,829 41,311
Winnipeg 256,523 273,443 304,824 215,101
Calgary 81,210 133.793 169,677 74,457
Edmonton 30,980 45,099 61,760 32,862
777,172 883,025 1,082,090 647,864
January 7, 1921
THE MONETARY TIMES
In one of these four men, perhapi. you will find a man
whose position and income were much the same as yours
What happens to the income of men ?
FOUR average business men, typi-
cal of thousands of others who
enrol for the Modern Business
Course and Service of the Alexander
Hamilton Institute — what happens
to the incomes and the business
positions of such men when they
add an all-round business training
to their practicalbusinessexperience.
The answer to that question need
not be left to guesswork. The
Institute has the record of the prog-
ress of these four men — and several
hundred like them — in their own
handwriting.
These are the facts
AN Assistant Cashier was earning
$3,000 a year at the time of his
enrolment with the Institute; today
he is Vice President and his salary
.s $7,200.
A Purchasing Agent was earning
$4,000; today he is General Manager,
and his salary is $12,000.
A Western Manager's income
when he enrolled was $4, 1 60 a year ;
and this year, as Sales Manager, he
will earn $20,000.
A chief clerk was earning $2,500
when he decided to shorten his
road to success by the Institute's
help ; today he is a department
head in an important bank, and
his income is $7,000.
The combined earning power of
these men has increased more than
300%; and every one of them states
in his own handwriting that the
Alexander Hamilton Institute has
been one of the most important, if
not the most important, factors in
his success.
"Would you advise other ambi-
tious men to enrol?"
WE asked each one of them to
answer that question in com-
plete frankness.
"By ail means." the Vice-President an-
swered, "because the knowledge one obtains
is practical and not theoretical. Especially
does this apply to men who have not had
long years of schooling in youth."
"Would advise to enrol at once." the
General Manager answered. "It is a real
help in understanding and solving everyday
problems."
"Yes," said the Department Head, "be-
cause, other things being equal, advance-
ment depends upon a broad knowledge of
business facts and a firm grasp of business
principles."
"Yes," said the Sales Manager, "because
1 feel that the time 1 invested in the Course
was the best investment I ever made."
The result of training
TO such men increased earning
power comes as a matter of
course; neither they nor the Institute
think in terms of money.
They think in terms of achievement; the
money takes care of itself.
Yet in days like these when the cost of
living is a problem to every ambitious man.
this fact, which many years' experience in
training men for success has proved beyond
a doubt, should be emphasized — that in-
creased income follotvs business training as
inevitably as day iollotos night.
Advisory Council
THE Alexander Hamilton Institute
was established to teach busi-
ness as a profession, as law schools
teach law or medical schools teach
medicine.
With the help of leaders in the
various departments of business —
sales, accounting, factory and office
management, costs, merchandising,
advertising, transportation, corpora-
tion finance— its Course was pre-
pared.
"Forging Ahead in Bttsiness"
FOR your convenience all the facts
you want are published in a
I 1 6-page book issued by the Institute
entitled "Forging Ahead in Busi-
ness." It tells just what the Modern
Business Course and Service is, how
it works and exactly what it has
done for men whose problems were
like your own.
Fill in the coupon, mail it, and
your copy of " Forging Ahead in
Business " will come at once.
Alexander Hamilton Institute
P.O. 4S09 603 C. P. R. BIdg., Toronto
"Forging Ahead in Bu
ay keep without obHgation
^34
THE MONETARY TIMES
Calves
1917
1918
Toronto 46,756 55,737
Montreal— (Pt. St. Ch.) 54,083 63,127
(E. End) . . 40,773 48,874
Winnipeg 12,196 12,169
Calgary 5,813
Edmonton 5,272 5,417
1919 1920
(10 months)
66,280 70,991
71,693
57,759
24,795
20,664
7,826
62,401
32,903
19,232
11,319
4,876
159,080 189,137 249,017 201,722
Swine
1917
Toronto 445,312
Montreal— (Pt. St. Ch.) 79,919
(E. End) . . 48,816
Winnipeg 278,943
Calgarv 118,010
Bchiionton 24,273
1918
1919 1920
(10 months)
393,983 255,884
995,273 990,768 906,244 547,207
19)1
1912
1313
1914
1915
1916
1917
1918
1919
1 <\i.O
A
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N
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/
J
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1
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Chart B
Sheep
1917 1918 1919 1920
(10 months)
Toronto 165,658 169,420 293,327 196,259
Montreal— (Pt. St. Ch.) 73,603 67,418 106,742 92,123
(E. End) .. 50,650 63,064 76,066 59,432
Winnipeg 20,665 36,141 52,808 47,500
Calgarv 19,826 51,729 50,684 35,255
Edmonton 3,416 5,137 19,217 7,194
•L 333,818 392,909 598,844 437,763
Sales on Public Yards
An analysis of the sales on our public yards for several .
years past shows that the proportion taken by packers for
slaughter at the inspected establishments has been rapidly
growing. Below are the numbers slaughtered for representa-
tive years since 1909: —
Year ended Cattle Sheep Swine
March 31. No. No. No.
1909 298,241 191,792 1,.5.32,796
1913 450,390 455,647 1,607,741
1915 530,425 447,173 2,598,338
1916 542,154 403,147 2,363,693
1918 739,085 336,987 2,129,682
1919 887,773 397.961 2,333,354
1920 961,613 600,153 2,179,391
April to Oct., 1920 431,236 280,320 726,960
Thus hog slaughterings reached the peak during the first
year of the war demand and then gradually dropped. Cattle
and sheep slaughterings, on the contrary, have steadily risen
year by year and touched the highest point in 1920. The
greater part of the purchases for slaughter takes place on
the public stockyards. The following table sets out the
number bought to the end of October at the five leading
markets of the Dominion (the two Montreal yards being
combined) : —
Cattle Calves Hogs Sheep Lambs
Toronto
Montreal
Winnipeg
Calgary .
Edmonton
Totals
181,9.54
62,593
88,908
35,106
12,997
32,948 132,346
89,768 99,820
10,644 97,904
249 22,929
2,474 19,066
71,613
19,922
29,035
10.933
3,695
78,094
72,859
871
67
381,558 136,083 372,056 135,198 151,891
The average prices by months for Toronto and Winnipeg
are typical for the whole Dominion. Four representative
classes are given below (being prices per 100 lb.): —
1920
.January
February
March . . .
April . . . .
May
.Tune . . . .
July . . . .
August . .
September
October
1920
January
February
March . . .
April
May . . . .
June . . . .
July . . . .
August
September
October . .
Of th? finished product of packing plants, i.e., meats, the
follovian? tables show the half-yearly movement for three
years: —
Impoi'ts in pounds
( April — September )
1918 1919 1920
Bacon, etc 1,042,872 1,943,909 2,795,697
Lard ■ 274,703 743,979 3,917,715
Pork, fresh 855,882 39,370,418 4,754,472
Pork, barrelled . . . 8,946,000 2,302,625 4,924,929
Pork, dry-salted 1,673,537 949,022
Totals 11,120,057 46,024,508 15,341,935
Exports in pounds
( April — September )
1918 1919 1920
Bacon, etc 44,067,410 128,801,700 47,738,100
Lard 15,413 5,283,400 408,700
Pork, fresh 245,943 778,700 754,900
Pork, barrelled , . . 16,070,456 963,200 272,800
Pork, dry-salted 1,671,900 612,400
Totals 60,399,222 137,498.900 49,786,900
Toronto
Steers
(over 1,000
Butcher
Hogs,
Lambs,
lbs.)
cattle
selects
good
$12.98
$10.60
$18.37
$18.47
12.69
9.81
19.14
19.47
13.13
10.54
19.62
19.86
13.57
10.75
20.15
18.65
14.47
■ 11.56
20.23
16.77
14.91
12.80
19.47
19.23
14.59
11.67
20.75
16.93
12.91
10.29
20.39
14.87
12.41
10.32
20.60
13.70
10.81
9.45
19.90
12.60
Winnipeg
Steers
(over 1,000
Butcher
Hogs,
Lambs,
lbs.)
cattle
selects
good
$11.55
$ 9.62
$17.05
$14.36
11.24
9.01
19.76
14.25
11..53
9.44
20.70
15.03
12.45
10.24
20.03
15.00
14.10
11.43
21.61
J5.65
13.90
10.98
18.57
15.42
11.49
9.30
18.50
12.44
10.57
8.60
19.73
12.53
10.49
8.41
21.08
11.61
8.99
6.84
19.00
9.68
January 7, 1921 T H E M O N E T A R Y T I M E S 235
piiiiiiiimiiiffiiiiiiiiiiuiiiniiiiiiiiiiiiiiiiiiiniiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiii
I THE CONSUMERS' GAS CO. |
I OF TORONTO I
The Consumers' (ias Company has a perpetual charier for the manufacture
and sale of gas in the City of Toronto, Townships of York, Etobicoke, X'aughan,
Markham and Scarboro.
The dividend is limited Ijy statute to 10% on the paid-up Capital- After this
dividend has been earned, and provision made for repairs and renewals, the Com-
pany must reduce the price of gas. The prices have gradually and voluntarily been
reduced, during the seventy-two years of the Company's history, from five dollars
per thousand cubic feet to one dollar and twenty-five cents. Moreover, the Com
pany has acquired one of the finest and most up-to-date plants obtainable.
The output of gas for the year ended vSeptember 30, 1920, was over 5,000,000
thousand cubic feet, being approximately equal to the combined output of all the
other gas companies in Canada. In addition, nearly .S475,000 worth of merchandise
was sold, and about Si-)00,000 worth of residual products.
The present capital of the Company is ijiS, 360,700. There is a reserve fund
of $3,346,982.09, and a plant renewal fund of $1,691,090.27. Assets total
$12,293,264.98. Profits for the past fiscal year were $1,240,274.47, after providing
for all expenses of management and operation.
The reserve and plant renewal funds together equal 94% of the Company's
capital, which funds are invested principally iu the Company's business, with no
interest charges against them. This means that the Company need earn only
about 5% on the mone\ invested in order to meet its dividend requirement of 10?b
on the capital stock. The Company has steadily maintained its lO'X dividend
for forty-six years.
The Directors are, Messrs. A. \\". Austin, President ; Wellington Francis, K.C.,
\'ice-Presideut: A. H. Campbell; L. Goldman; F. Le M. Grasett, M.D. ; John
Hoskin, K.C., LL.L)., D.C.L. : Herbert Langlois ; Lieut-Col. J. F. Michie ; \V.
Mulock, Jr. The General Manager is Mr. .\rthur Hewitt : the Secretary
Mr. John J. .Wmstroug.
Table Showing Increase of Company's Business
V.J-
Gas
Output
M.Cu. Ft.
No. of
.Mctirs
Papula-
tion of
District
Supplied
Consn
per
Capita
Cu. Ft.
Pop.
per
Meter
Miles
of
Main
1870
45,548
1,403
56,000
531
40
43
1880
140,383
3,906
75,110
1,378
19
98
1890
507,555
13,242
160,141
2,408
12
192
1900
838,215
26,982
225,000
3,326
8
251
1910
2,621,247
65,349
400,000
6,019
6
424
1920
5,127,827
122,793
575,000
8,546
4.6
601
SlllllllllllilllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllllllllllUIIIIIIHIIHIIIIIIIIIIIIIIIIIIIIIIIIH
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiNiiiiiiiiiniiitiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiii
THE MONETARY TIMES
Volume 66
Growth of Canadian Manufacturers' Association
Fifty Years of Work Nearly Completed— 1919 Brought Re-organization, and 1920
a Large Increase in Membership — Outline of Present Work — The Tariff", Railway
and Express Rates, Fuel and Power Have Been Prominent During Past Year
By J. S. McKINNON
President, Canadian Manufacturers* Association
NINETEEN-TWENTY has been a year of steady expan-
sion and largely increased activity for the Canadian
Manufacturers' Association. Not only has the membership
grown considerably, but the services rendered by the organi-
zation have been extended and its value to its members made
more and more apparent.
It is now close on to fifty years since the CM. A. was
established and a year from now the association will be cele-
brating its golden jubilee. In the half-century interval the
organization may be said to have passed through three dis-
tinct epochs. There was the period extending roughly from
1872 to 1899, when the association was composed in the
main of local organizations in two or three principal industrial
centres and when as a consequence its activities were largely
local. Then came the period from 1899 to 1919, during which
development took place along more genuinely national lines,
when new and valuable services were inaugurated and when
the association assumed much of its present form and purpose.
Reorganization in 1919
A third epoch was begun in 1919. It had as its outward
manifestation a reorganization of the whole associational
structure, including the establishment of the office of general
manager, the formation of divisions and the creation of new
branches and trade sections, together with a vigorous drive
for new members. This work definitely begun in 1919 was
carried over into 1920 and formed an important part of the
activities of the past twelve months.
As regards membership, a campaign was launched in
November, 1919, having as its object the bringing in of a
large number of manufacturers who for one reason or an-
other had hitherto held aloof. This campaign was thoroughiy
organized; considerable effective advertising matter was pre-
pared and distributed, and this in turn was supplemented as
far as possible by a direct personal canvass. The results
were gratifying. In three months approximately 600 new
members were added to the roll.
The association began its fiscal year May 1, 1919, with
a membership of 3,530, and closed the year with a member-
ship of 4,061, a net gain of 531. The present membership
is 4,124. The membership io thoroughly representative of
the manufacturing industries of the whole country, and while
Ontario claims the largest number of members, with Que-
bec a close second, there are strong bodies of members in the
maritime provinces, the prairie provinces and British
Columbia.
Demand for Association's Services
Hand in hajid with the growth of membership there has
been an extension of the facilities afl'orded members for the
solution of problems arising from day to day in their busi-
nesses. Each and every department has been strengthened
during the year by the addition of assistants. Oddly enough,
wherever the latter have been appointed, departmental work
has increased to such an extent that the pressure, instead of
being relaxed, has been increased — an excellent commentary
on the value of the association to its members and an indica-
tion of the possibilities of work lying before it.
The tariff department has not only experienced an in-
crease in the demands on its time for assistance in handling
ordinary tarifif matters, but has had to deal with hundreds of
inquiries about the new excise taxes and other legislation
affecting the taxation of manufacturers.
The transportation department has had an unusually
busy year, for many important cases have come up for hear-
ing before the Railway Board in which manufacturers are
vitally interested. The railway rates case, the telephone
case, the express rates case are instances in point. In each
instance, briefs have been prepared and arguments present-
ed. As in the case of the tariff department, there has also
been a heavy increase in the z'outine work of the transpor-
tation department.
The legislation department has been strengthened by the
appointment of a junior solicitor, and its work has been very
considerably extended. So also has the work of the com-
mercial intelligence department, whose functions are steadily
becoming of greater importance. This department has been
doing a great deal to promote Canada's export trade both
through the compilation of the Canadian Trade Index and the
communication of information to inquirers from all parts of
the world.
The trade sections department has not only given valu-
able assistance in organizing groups of manufacturers into
sections for the closer study of problems aff'ecting such
groups, but has made a special investigation of the subject
of exhibitions, particularly those in other countries, in which
Canadian manufacturers might be interested as exhibitors,
and has furnished useful reports on a large number of these.
Territorial Divisions
The task of organizing territorial divisions has been
continued and may now be regarded as complete. As at
present constituted, the association comprises five divisions
— the Maritime, taking in the three maritime provinces; the
Quebec, conforming to the province of that name; the On-
tario; the Prairie, covering Manitoba, Saskatchewan and
Alberta; and the British Columbia. In each division a sec-
retary is assigned to deal specially with all matters aff'ect-
ing the interests of the members in that tei'ritory, and he is
under the direction of. a divisional executive and standing
committees. In this way the organization of the association
is modelled on that of the Dominion and the provinces, and
members enjoy the privilege of self-government in local
matters.
Annual Meeting at Coast
After an interval of ten years, the association held its
1920 annual meeting on the Pacific coast. An excursion was
arranged by special train, which enabled a considerable num-
ber of members from Ontario, Quebec and the maritime pro-
vinces to attend. Advantage was taken of the tour through
the western provinces to hold a series of meetings in the
principal cities en route. At these meetings, spokesmen for
the association explained the aims and objects of the organi-
zation, emphasized the importance of manufacturing industry
to Canada and made overtures of friendliness to the agricul-
tural population of the west. From this standpoint, the ex-
cursion did much to clear up misunderstandings and to give
the people of Canada generally a better idea of the part
played by manufacturing industry in building up the country.
The annua! meeting itself took place on June 7, 8 and
9, at Vancouver. Apart from the discussions arising from
the reports of the standing committees, which covered the
work of the preceding year very thoroughly, the attention
of the meeting was devoted quite largely to the subject of
export trade — a theme in which we found that our members
on the Pacific coast were deeply interested. Speeches de-
livered by Premier Oliver, Captain Robert Dollar, Trade
Commissioner Bryan of Japan, and others, all emphasized the
January 7, 1921
THE MONETARY TIMES
•237
NEW BRUNSWICK
The Province of Thrift, Comfort and Prosperity
ONE WEEK FROM EUROPE
SITUATE at the gateway to the
Atlantic, with an all-the-ycar-
round ocean port, the nearest
to Central Canada, and served by
several lines of the Canadian Pacific
and Canadian Government Rail-
ways, New Brunswick is the best
watered of all the Provinces for
its size. Eighty per cent, of its
surface is still covered by forest,
the major part beinp paper-making
woods. Thus New Brunswick offers
large opportunities for the use of
cheap power.
Development up to the present
has been small. One of the great-
est falls in Eastern Canada, that
of the St. .John River, has never
yet been utilized, and there are
other lesser ones.
Recent legislation of broad scope
provides for Government control
of power possibilities under a
Power Commission. By authority
of that legislation the Government
is at present initiating power de-
velopment for use at three centres,
St. John, Fredericton and Bath-
urst. The purpose of the legisla-
tion also is to remove obstacles
from the path of any who seek to
develop the natui'al powers of the
Province.
Of New Brunswick it has been
said, "There is not a poor man
in the province." Certainly, New
Brunswick possesses a lai'ge pro-
portion of landowners among her
population. The total area of the
province is 27,985 square miles,
with 13 million acres fit for culti-
vation. More than twenty-five per
cent, of the land was occupied and
under cultivation by 1911, and in
most cases the settlers owned their
own holdings of from 11 to 200
acres. New Brunswick is an un-
dulating province, with elevations
clad thickly with valuable timber
and pulpwood, and with many rich
valleys, especially West of St.
John, where the soil is especially
productive. The population in 1911
was 351,900, and is increasing
rapidly.
FOREST RESOURCES
Over 11.300 square miles of forest
areas are owned by the Provincial Gov-
ernment of New Brunswick. Spruce is
the chief wood, but there are cedar, fir.
tamarack, maple, beech, birch, ash. pop-
lar and hemlock in commercial quantities,
and there is no district in all the province
from which logs cannot be driven to their
destination by waterways. In 1917 New
Brunswick produced in lumber 593.497
feet B.M. valued at $11,324,101 and in
pulpwood the production of the province
was 105,586 cords worth $733,482. Five
II ...
' Financial Statement, 1919
Total Funded Debt S
20.664.402
Less-
Sinking V
ind. $1,078, 173
St. John
and
Quebec
Uil-
way De
ben-
turrs
. . . 6.954,408
8,032,581
Vft Funded
Debt
12.631,821
Indirect Li;i
bilities, fully
Estimated value of seven
million I
cres timber
limits ow
vince
ned by Pro-
50,000.000
Public Build
ngs and Farm
1 Lands ow
ned by Pro-
Annual Subs
idy receivable
from Dom
nion Govcrn-
Population
. 351.900. Area. 27,985 ,
square miles
This Pro%
ince does not
tax In-
come. Real
Estate or Pers
onal Pro-
pcrly for R
evenue purpos
es.
Airricultur
dI production
in 1919
was valued
at S80. 971.000
or prac-
tically four
times the t
otal debt
1 of the Provi
1
nee.
The Provincial Cabinet
Liputenant-Govomor — His Honour
the Hon. WILLIAM PUGSLEY.
P.C. K.C.. D.C.L.. LL.D.
Premier. Hon. William E. Foster.
Attorney-General, Hon. James P.
Byrne.
Minister of Public Works, Hon.
Peter J. Veniot.
Hon. Fred. Magce. Member of
Council.
Minister of AKricuIture. Hon. D. W.
Mersereau.
Provincial Secretary-Treasurer, Hon,
J. E. Hetheringrton.
Minister of Lands and Mines. Hon.
C. W. Robinson.
Government Buildings
Fredericton, N.B.
important pulpwood concerns reported to
the Government's request for returns
from the province of New Brunswick in
H)17.
AGRICULTURE
Mixed farming, root crop production,
and dairying are important among the
aKricuitural branches of New Brunswick
industry. New Brunswick is specially
adapted to dairying. It has plentiful
rainfall, and little drought, which means
abundant pasturage and healthy dairy
herds. Root crops for herd feeding,
such as turnips, mangels, and sugar
beets, grow luxuriantly, and in unusuallv
fine quality. The New Brunswick dairy
industry ships products to the West
Indies, Cape Breton. Newfoundland, the
U. S. A. and Canadian inland provinces.
In 1917 the cheese output realized $242.-
564. Fruit growing is a valuable indus-
try, the New Brunswick apple being
famed. It has the advantage of a nearer
point of shipment by water direct to
British and West Indian ports, Kurope,
and S. America. New Brunswick holds
the record for the American continent
in the production of potatoes and root
vegetables. They secure the highest
prices on all markets accessible.
The coal areas of Queens and SunbuiT
are estimated to produce ir>0.000.000 tons
before exhaustion. Since war began
their wonderful development has played
an important part in assuring industrial
activit>'.
WATERPOWERS
While the potentialities of New Bruns-
wick in water power development are far
in excess of existing actual power pro-
duction, there are developed powers on
the St Croix River at Cottonmili, 2.400
h.p. : Woodland. l.t.20O h.p. : and Grand
Falls. 8.000 h.p.. and on the Magagua-
davic River at St George Falls, 3.000
h.p.. with a development of 3.900 h.p. on
the Aroostock River at Aroostock Falls.
There are some smaller powers de-
veloped, but an 80.000 h.p. development
is contemplated for the St John River at
Grand Falls, the water power at Musquash,
near St John City, is now being developeil
by the Province.
MANUFACTURING
New Brunswick's strategic location for
shipping products to the markets of the
world makes the province peculiarly well
adapted to manufacturing. In this line
of industry New Brunswick is very pro-
ductive, and between 1900 and 1915 the
industry had increased 80 per cent. New
Brunswick's lines of manufacture include
log products, cottons, foundry products,
fish products, flour products, wood pulp.
and iron and steel. In 1917 the output
was worth $62.417,4G6.
A progressive good roads programme
has been carried on during the past three
years, $2,250,000.00 having been ex-
pended by the Province. Trunk roads
have been made of the Provinces main
highways, the interest on the investment
pud the sinking fund being provided for
through the revenue received from motor
vehicle licenses. «
238
THE MONETARY TIMES
Volume 66
potentialities of the great desirability of obtaining a foothold
for Canadian manufacturers in the countries across the
Pacific.
The Tariff Inquiry
Dominating the work of the association during the sec-
ond half of the year was the tariff inquiry. With manu-
facturers all over Canada vitally interested in seeing that the
policy of adequate protection for Canadian industries was
maintained, it devolved upon the association to present to the
members of the Tariff Commission a reasoned and informed
statement on the whole issue.
The general statement of the association, which was pre-
sented to the commission at its first hearing in Winnipeg on
September 14, was an elaborate document going very thor-
oughly into the various aspects of the argument in favor of
protection and demonstrating clearly and forcibly how seri-
ous a matter it would be, not only to manufacturers and in-
dustrial workers, but to the country as a whole if any radical
departure were made from present protective principles. In
order to bring this statement to the attention of the Cana-
dian people, arrangements were made for its publication as
paid advertising in every daily newspaper and farm publica-
tion in the country, giving it thereby a circulation of over
2,600,000 copies. In addition, the statement was printed as
a pamphlet and was widely distributed in that form.
Reviewing some of the general work of the year, refer-
ence should be made to the further prosecution of the Made-
in-Canada campaign. A special effort was made to bring to
the attention of architects and contractors the desirability of
specifying Canadian materials in Canadian contracts, while
at the same time members of the association were specially
urged to employ Canadian engineers and architects when
such a course was possible. Representations were also made
to the Dominion and provincial governments requesting them
to purchase Made-in-Canada goods for all government re-
quirements, a course which was rendered all the more desir-
able and necessary by reason of the adverse state of ex-
change.
An important step was taken by the association during
the year in becoming affiliated with the British Federation
of Industries, an organization of British manufacturers in
the United Kingdom, corresponding to the C.M.A. in Canada.
By this arrangement the British Federation of Industries
undertakes to do certain work of value to the Canadian Manu-
facturers' Association in the United Kingdom, while in re-
turn the Canadian Manufacturers' Association renders ser-
vices to the British. Federation in Canada.
Fuel and Power
The problem of the fuel supply, which became prominent
during the war years and has since become even more acute,
has been the object of much careful consideration by the
association during 1920. So important was it regarded that
a special committee of the executive committee was formed
to deal with it and, as a result of their investigations, a
great deal of valuable information has been assembled which
will form a basis for future action.
Allied with the problem of fuel was that of power.
This has been a subject that has been dealt with largely
by the divisions. In Ontario, a special power committee has
been active, their representations regarding shortage of
power having much to do with the recent purchase of the
private power companies by the Ontario Hydro-Electric
Power Commission. In both Nova Scotia and New Bruns-
wick, the association has been closely identified with the new
provincial commissions, which are engaged in developing
power in these provinces.
There were many other subjects handled by the asso-
ciation during the past year, the enunciation of which would
fill a book. Suffice it to say that the organization has been
growing steadily both in its membership and its services,
and that it finishes the year in a stronger position than it
ever attainevd before.
BRITISH MANL'FACTURERS WATCHING CANADA
Fifteen Hundred Represented Here, and Visits This Year
Show Increasing Interest — Recent Tendencies in
British Industry
THE past year has materially strengthened Anglo-Can-
adian trade relations and has witnessed an increase
in the volume of British Empire trade," said F. W. Field,
British Government Trade Commissioner in Ontario, in an
interview with a representative of The Monetary Times.
"Canadian imports of United Kingdom manufacturers, raw
materials, and semi-manufactured articles have materially in-
creased, and Canada has always found Great Britain its best
market. It is probable that during 1921 the volume of Can-
adian imports from the old country will show a material ad-
vance compared with the figures of 1920.
Many British Visitors Here
"One of the outstanding figures of the year has been the
visit of many manufacturers and other business men from
the United Kingdom to Canada. The number last year was
greater than in any previous 12 months' period. Managing
directors, export managers and sales managers from the old
land have come in a large number, as well as many sales-
men of United Kingdom firms. They have secured first-hand
information of the requirements of this market, and have sold
a satisfactory volume of goods. In addition, the visit of the
members of the Imperial Press Conference and the Congress
of Chambers of Commerce of the British Empire held at
Toronto in September were of great value in giving such im-
portant delegations an excellent idea of the possibilities and
prospects of this great Dominion. The frequent inter-
change of visits of business men in various parts of the
Empire is very desirable.
"Canadian importers have made efforts during the past
year, after satisfying their requirements in Canada as far as
possible to purchase their demands in the United Kingdom
or in other parts of the Empire. At the same time, buyers
in the United Kingdom and in other Dominions have en-
deavored to purchase their requirements in Canada. Con-
siderable business thus has been diverted from foreign
countries to points within the Empire. The development of
this policy will in a few years build up a substantial volume
of inter-Empire trade. Each part of the British Empire will
endeavor to learn what the other sections can produce and
can supply.
Fifteen Hundred Represented Here
"More than 1,500 United Kingdom manufacturers are
represented in Canada, either through branch factories,
warehouses, offices or agents, and the number is being in-
creased. The Canadian Association of British Manufac-
turers and their representatives, with branches at Toronto
and Montreal, and the British Agents' Association at Mont-
real are doing good work in the interests of British trade
in Canada.
"The British Government Trade Commissioner Service
in this Dominion is represented by three trade commission-
ers, one each at Montreal, Toronto and Winnipeg. They de-
sire to be of the greatest assistance to Canadian importers
and manufacturers, and have been able to achieve definite
results in the promotion of Anglo-Canadian and British
Empire trade. The facilities of the British Government
Trade Commissioner Service, working under the Department
of Overseas Trade in London, have been offered to all the
Dominions' governments. In the case of Canada, the service
has been accepted at all points at which the Canadian govern-
ment has not a trade commissioner. The government of
India has accepted the service in its entirety.
"The history of British Commerce during the 19 months
ending 31st July is a record of unexampled growth and de-
velopment. A scrutiny of the export figures published for
each of these 19 months shows clearly the reality of British
reconstruction."
January 7, 1921
THE MONETARY TIMES
,,,,,,,.,,,1,, Anv„„ll,,
" Hydro" Power is sold at very /«■
A Silver Niitwi-t
The Land of Opportunities
for investors, farmers, miners, manufacturers
ONTARIO
Industry : Integrity : Abundance
Behind Every Ontario Bond Issue
Bond
bonds
farms.
Stcnn
DICH HI miiMTJils. timber and
waterpowers ; with vast
tracts of untilleU farm land
and virprin forests ; produc-
ing half of Canada's manu-
factures, and making giant
strides in industrial develop-
ment, Ontario presents greater
opportunities to capital and t'>
labor than any other province
in Canada.
Recent railroad construc-
tion has made accessible a vast
region of natural wealth in
Northern OnUrio. Fortune and
health await thousands in this
wonderful land : sustenance
will be given to millions, and
Ontario faces a glorious
future.
Revealing immense wealth in
minerals, lumber, pulpwood,
furs, and the products of what
is still in great measure virgin
territory, Ontario has been but
scratched agriculturally and yet
ranks first in productive power
with Canada's finest agricultural
districts. In Southern Ontario
all forms of farm and garden
produce, from grapes and
peaches to cereals and root
crops of every variety, thrive to
perfection. The annual value
of an Ontario fruit crop is over
520,000.000: Spring wheat (aver-
age). $15.300.000 : Fall wheat
(average). $4,883,000. Ontario
in 1918 produced over fift>' per cent of the dairy products of
the Dominion to a market value of $47,834,289- Pork products
put out by five Toronto packing houses in one year run to
market value of well over $60,000,000.
Forest and pulpwood wealth is very great, there being 260.-
000 square miles of available forest areas, containing timber
laeut.-Govemor: His Honor Lionel H. Clarke: Prime Minister and President of Council: HON. E. C. DRURY:
Attorney-General, Hon. W. E. Raney: Treasurer. Hon. Peter Smith: Secretary and Registrar, Hon. H. C. Nixon; Minister
of Education. Hon. R. H. Grant: Minister of Public Works. Hon. F. C. Biggs: Minister of Lands. Forests and Mines. Hon.
Beniah Rnwman : Minister of Agriculture, Hon. M. W. Doherty; Minister of Labor and Health. Hon. W. R. Rollo; Minister
of Mines. Hon. H. Mills: Without Portfolio, Hon. D. Carmichael.
lancial houses everywhere recognize i
asues of the Province of Ontario ca
the gilt-edged securities.
p ANNUAL PRODUCT on Onta
forests, industries, etc. (which under the tax
of the province secures all Ontario Govrnment
would pay off the entire direct bonded debt of
• province 2:^ times, and do it each year.
A FEW SIGNIFICANT FACTS
Area Assessed 25,000,000 acrci^
cultivation 14.000,000 "
f Forest Territory 150.000 sq. n
Railways, total length in Ontario 11.057 miles
Electric Railways 767 "
Drvelopod water power 985,000 h.p.
Ontario's Hydro-Electric Power Commission has constructed
operates 2,533 miles of high and low transmission li
Ontario has 23 cities. M9 towns. 150 villages and 553 townsi
Assessed Value $2,054,000,000
Annual Production 1.152.000,000
Land 20.000.000 acres
19.000.000.000 feet
vailable
ated Far
Available Pulp Wood
Undeveloped Water Powers.
\ alut- of Ontario Products
300.000.000 cords
6.000.000 h.p.
$2,013,000,000
of
mg
■iai
pine alone being the
best in quality found on the
American continent, and in con-
stant demand. Hardwoods used
in furniture and modern in-
terior equipment lare available,
and of pulpwood, the province
has resources running to 300,-
000.000 cords at least. Total
production of timber in 1916
was 253,539,089 feet, board mea-
sure. Total revenue from
woods and forests was $2,635.-
684. Associated with the forest
wealth of Ontario to a great
extent is the available water
powers, there being at least
6.000,000 h.p. within convenient
reach of commercial develop-
ment, and progress is raQid in
the development of many water-
powers by pulp and paper mills,
power and light companies and
the Ontario Hydro-Commission.
Mineral resources of Ontario
cover practically the entire list
of commercially valuable me-
tallics and non-metallics, ex-
cepting coal and tin. Mineral
production for 1918 was worth
$80,308,972, which was actually
45 per cent, of the total Do-
minion mineral production.
Ontario is the principal
manufacturing province of Can-
ada. There are over 15.000
factories, mines and productive
enterprises envolving the use of
plant to convert natural resources to commercial use. Over' 375,-
000 workmen are employed, the annual payroll being $285,000,000.
Capital invested is well over $1,336,000,000, the annual production
being worth SI. 535.000,000. The province is one of the most attrac-
tive for the location of industries requiring proximity to natural re-
power and room, and advantageous transportation facilities.
THE MONETARY TIMES
Volume 66
1920 Crops Were Best Since 1915
Values Greater Than Ever Before— Acreages of Some Grains Were Less Than
in 1919. but Average Yields Were Much Better— Decrease in Number of Horses,
Cattle and Hogs, but Increase in Sheep — Detailed Figures by Provinces
CANADIAN grain crops in 1920 were the largest since the
banner year 1915. Their values, owing to the higher
prices for grain, are the highest up to the present time. The
following figures compare the 1920 yield as estimated by the
Dominion Bureau of Statistics, with the record for each class
of grain: —
Highest yield to 1920 1920 yield
Grain. (bushels). (bushels).
Fall wheat 29,320,600(1915) 19,265,000
Spring wheat .. 364,222,000(1915) 274,096,000
All wheat . . . 393,542,600 (1915) 293,361,000
Oats 464,954,400(1915) 543,058,000
Barley :.. 77,287,240(1918) 65,559,000
Rye 10,207,400(1919) 12,190,000
Peas 4,313,400 ( 1918) 3,702,800
Beans 3,563,380(1918) 1,435,800
Buckwheat 11,375,500(1918) 9,966,500
Mixed grains .. . 35,662,300(1918) 31,427,000
Corn 16,940,500(1919) 13,696,000
Flax 8,259,800(1916) 10,766,000
The detailed figures are as follows: —
I- — Areas and Provisional Estimate of the Yield of Cereal
Crops for 1920, as Compared With the Final
Estimate of 1919
1919, 1920,
bush. bush.
1919. 1920. per per 1919. 1920,
Field crops. acres. acres. acre. acre. bush. bush.
Canada —
F. wheat 672,793 814,133 23.75 23.75 16,006,000 19,265,000
S. wheat 18,453,175 17,418.241 9.50 16.75 177.254,400 274.096,000
All wheat.. .19,125,968 18,232,374 10.00 16.00 193,260,400 293,361,000
Oats 14,952,114 15,849,928 26.25 34.25 394,387.000 643,058,000
Barley 2,646.509 2.551.919 21.26 26.75 56.389.400 65,559,000
Rye 753,081 649,654 13.50 18.75 10.207,400 12.190,000
Peas 230,351 186,348 14.75 19.75 3,406,300 3,702,800
Beans 83,577 72.163 16.50 20.00 1.388,600 1,435.800
Buckwheat . . 444,732 378,476 23.50 26.25 10.550,800 9,966.600
I^lax 1,093,115 1,428,164 5.00 7.60 5,472,800 10,756,000
Mi.xed grains. 901.612 811.634 31.00 38.75 27,851,700 31,427,000
Corn, husking. 264,607 290,316 64.00 47.25 16,940,500 13,696,000
P.E. Island—
S. wheat 35,595 37,601 17.00 13.50 624.600 503.000
Oats 174,937 183,462 34.00 28.26 6,038.000 5.182,000
Barley 5,636 5,046 29.00 25.00 164.000 126,000
Peas 490 164 16.00 20.00 S.IOO 3.300
Buckwheat .. 4,094 4.035 20.75 28.00 87.800 112,500
Mixed grains. 18,900 16,504 44.00 29.75 843,400 492,000
Nova Scotia —
S. wheat .... 28.931 26,116 19.50 19.50 564.000 511.000
Oats 158.838 152,976 36.00 33.00 6.718.000 5,044,000
Barley 13,894 11,487 31.25 27.75 434,000 3'9.000
Rye 1,046 470 29.50 15.00 31,000 7.000
Peas 1.896 1,046 20.00 22.00 38.000 23,000
^eans 6.869 4,617 12.75 18.60 87,000 85,000
Buckwheat . . . 17,384 13,106 25.25 23.50 439.000 309.000
Mixed grains. 8,628 6,171 37.50 33.60 218,000 207,000
N. Brunswick —
S. wheat 35,641 29,485 17.50 17.75 623,000 523,000
Oats 306,484 309,071 30.25 28.25 9,261,000 8,731,000
Barley 10,662 8,177 26.76 22.50 286,000 184,000
"ye 353 264 20.00 14.50 7.000 4.000
Peas 4.697 2,844 14.75 16.75 69.000 48.000-
geans 6,409 4,254 16.60 18.26 106.000 78.000
Buckwheat 74,642 66,366 25.00 31.75 1,871,000 2.107,000
Mixed grains. 5,297 3,395 33.75 30.50 179,000 104,000
Quebec —
S. wheat 251.089 222.045 16.75 18.75 4,206.000 4,163.000
Oats 2,141,107 2.005,908 26.75 32.50 57,275,000 71,692,000
Barley 234,892 194,444 22.75 26.00 6,344,000 5,066,000
Rye 33,481 28,462 17.25 18.00 578.000 512.000
Peas 81,642 60,870 15.00 17.50 1.225.000 1.066.000
geans 43,202 36,835 19.75 20.50 853,000 735,000
Buckwheat ... 170,043 151,765 24.00 26.50 4.081.000 4.022,000
*'?^ , 11.384 16,035 9.75 12.25 111,000 196,000
Mixed Brains, 157,637 143.423 27.00 31.00 4.266.000 4.446,000
lorn, husking. 43,603 47,741 41.00 27.75 1,788.000 1,325,000
Ontario —
F. wheat .... 619,494 762,371 24.30 23.75 16,052,000 18,023,000
aT, "v 361,150 267,367 16.60 17.25 5.646.500 4.606,000
All wheat . . 980,644 1,029,738 21.20 22.00 20,698.500 22.629.000
Oats 2.674.341 2.880.053 29.30 44.00 78.388,000 126.679.000
Barley 569.183 484.328 23.10 34.50 13,134,000 16,762,000
?ye ■■ 140,072 133.090 15,80 18.50 2.219.000 2.466,000
Peas 127,253 109,187 14.30 21.50 1,816,500 2,357,000
Beans 22.920 22,744 12.60 20.00 288,500 456.000
1919.
Field crops. acres.
Buckwheat . . . 178,669
Flax 13,717
Mixed grains.. 628,761
Corn, husking. 221,004
Manitoba —
S. wheat 2,880,301
Oats 1,847,267
Barley 893,947
Rye 298,932
Peas 5,666
Mixed grains.. 30,355
Flax 57,379
Saskatchewan — •
S. wheat 10,587,363
Oats 4,837,747
Barley 492.586
Rye 190,482
Peas 4,853
Beans 1,820
Mixed grains.. 22,017
Flax 929,945
Alberta—
F. wheat 40.600
.S. wheat 4.241.903
All wheat . . 4.282,503
Oats 2,767,372
Barley 414,212
Rye 83,804
Peas 1.603
Beans 690
Mixed grains.. 26.000
Flax 80.690
Br. Columbia —
F. wheat 12.699
S. wheat 31,202
All wheat . . 43,901
Oats 45,021
Barley 10,497
Rye 4,911
Peas 2,251
Beans 1,677
Mixed grains.. 4,017
bush. bush.
1920, per per
143,204 22.80 23.75
21,063 9.40 12.00
581,689 31.40 41.25
242,575 68.60 51.00
2,705,622 14.25 14.00
1,873,954 31.26 30.00
839,078 19.26 21.50
148,602 13.75 16.25
4,162 14.25 14.50
28,800 25.00 37.00
146,456 9.00 10.00
10,061,069 8.50 13.75
5.106,822 23.10 29.00
519,014 18.20 21.75
172,449 10.50 16.25
2,519 18.00 14.60
793 10.00 17.00
18,361 35.00 33.50
1.140,921 4.80 7.00
38,000 15.75 24.00
4,036,483 8.00 21.50
4,074,483 8.00 21.60
3,089,700 23.75 38.50
480.699 25.50 28.00
160,960 14.00 23.75
2,899 18.00 17.00
2,305 10.00 17.00
8,398 36.25 30.75
103.700 2.75 8.25
13,762 24.75 24.00
32,463 22.00 24.26
46.215 22.75 24.25
47,992 47.28 51.26
9,646 33.00 33.50
5,367 22.60 30.00
2,667 23.00 23.00
1.615 17.25 18.75
■ 4,893 36.50 37.00
1919,
bush.
4,072,000
129,500
19,735,300
15,152,500
40,976,300
67,698,000
17,149,400
4,089,400
81,400
769,000
520,300
89,994,000
112,157,000
8,971,000
2,000.000
87,300
18.200
771,000
4,490,000
640,000
33,935,000
34,676,000
65,725,000
10,662,000
1,173,000
29,000
6,900
943,000
222,000
314,000
686,000
1,000,000
2,127,000
346,000
110.000
52.000
29.000
147,000
1920,
bush.
3,416,000
263,000
24,058,000
12,371,000
37,879,000
56,219,000
18,040,000
2,416,000
60,000
1,066,000
1,465,000
138,340,000
148,098,000
11,289,000
2,802,000
36,500
13,500
615,000
7,986,000
912,000
86,784,000
87,696,000
118,963,000
13,460,000
3,823,000
49,000
39,000
268,000
856,000
330,000
787,000
1.117,000
2,460,000
323,000
161.000
61,000
30,300
181,000
II.-
-Areas Sown to Root and
Compared With
Fodder
1919
1919,
Canad.i—
Potatoes
Turnips, etc
Sugar beets
Hay and clover 10
Fodder corn
Alfalfa
Prince Edward Island-
Potatoes
Turnips, etc
Hay and clover
Fodder corn
Nova Scotia —
Potatoes
Turnips, etc
Hay and clover
Fodder corn
New Brunswick — •
Potatoes
Turnips, etc
Hay and clover
Fodder corn
Quebec-
Potatoes
Turnips, etc
Hay and clover 4.
Fodder corn
Alfalfa
Ontario-
Potatoes 157.286
Turnips, etc 123.029
Sugar beets 24,600
Hay and clover 3,508,266
Fodder corn 399,549
Alfalfa 146.790
Manitoba —
Potatoes 42.000
Turnips, etc 6.045
Hay and clover 260.378
Fodder corn 1G.867
Alfalfa 5.181
Saskatchewan —
Potatoes 66,176
Turnips, etc 13.932
Hay and clover 265.417
Fodder corn 6.600
Alfalfa 11 5''G
818,767
317.296
24.500
595,383
811,769
226,869
36,234
522
62.060
30,291
678.357
2,960
75.573
24,279
786,175
5,906
315,690
87,496
299,360
74,007
Crops. 1920.
1920,
784,544
290,286
36,288
10,379.292
588.977
238,556
36.322
9,397
243,394
190
50,092
19,946
632,069
1,451
78.335
20.030
726.380
6.243
310,692
83.613
4,290,121
86,833
28,200
157,509
119,744
36,288
3,533.740
449.176
162.820
37.000
7.404
208.512
17,042
3,679
53,814
10.449
234,532
16,685
10,473
Januai'v 7, 1921
THE MONETARY TIMES
Canadian Pacific Railway's Position Strengthened
Increase in Railroad Rates a Recognition of Need of Good Service-
Rapid Rise of Operating Expenses the Cause — Company's Assets of
Over One Billion Dollars All Contribute to Prosperity of Canada
UN' USUALLY good crops and continued business activity
combined to make 1920 a record year for the Canadian
Pacific Railway Company. Good use was made of this op-
portunity to increase the value of the land and water trans-
portation services operated. While gross earnings showed
a substantial increase over those for 1919, higher operating
expenses reduced net earnings during the early part of the
year. For the first seven months of 1920 gross earnings
i;k m:^- \ ■ i'.T -Showing Lnvertep Syphon Under
iMain Line of the C.P.R.
were $109,433.:{47,. compared with $91,442,630 for the first
seven months of 1919, an increase of $17,990,717. The
operating expenses for the saftie periods were $96,385,675
and $76,259,448 respectively, an increase of $20,126,227,
leaving net earnings of $13,047,672 and $15,183,182 respec-
tively, a decrease of $2,135,510.
Condition.s, however, improved later, showing a net in-
crease of $2,353,040 for the month of October, and a net
increase of $1,223,201 for November, thus reducing the net
decreE'se for the eleven expired months of the calendar year
to $319,888. During this period, gross earnings increased by
22.6 per cent., as compared with 1919, while working costs
grew by 28.4 per cent.
The showing of- the Canadian Pacific was better than
that of the Canadian railroads as a whole, but the importance
of adequate transportation facilities was recognized in Sep-
tember by till' granting of increases in both freight and pas-
senger rates. Higher rates had been urged by the Canadian
Railway .Association, representing all the important roads
in the country, and it was clearly demonstrated that without
such an increase railroad service in Canada would depreciate.
The railroads were able to present a strong case before
the Board of Railway Commissioners, and increases averag-
ing about 30 per cent, were granted.
A unique feature in connection with the Company's
capitalization is that, with the exception of $3,650,000 of
Algoma Branch First Mortgage Bonds, its properties are
not mortgagwl. The issue of 4 per cent. First Mortgage
Bonds originally outstanding has been retired and for several
years previous to the war all financing was provided for by
the issue of 4 per cent. Perpetual Debenture Stock, 4 per
cent. Preference Stock and Common Stock. The first two
mentioned were sold in England in various amounts at an
average price very little below par, constituting probably
the most economical financing ever accomplished by .any rail-
road. Of the $260,000,000 of Common Stock $ilO,obo,000
was sold at a premium and of this amount $60,000,000
realized .'SI 75 per share.
On December 31st last the Company's total assets were
valued at $1.07K.777,358. Of this amount railway lines,
equipment ;>nd -steamships made up $578,352,928, and the re-
mainder included as principal items, net current assets to
the amount of $91,691,447, including over $53,000,000 of
cash, and miscellaneous assets to the value of $276,337,570,
which may be itemized as follows: —
Deferred payments on lands and townsites ....$ 66,659,932
Imperial and Dominion Government Securities . . 37,702,581
Provincial and Municipal securities 2,031,721
Debentures Stock loaned to Imperial Government 40,000,000
Miscellaneous Investments 31,762,215
Assets in lands and properties 95,211,438
Cash 2,969,683
$276,337,570
The above assets were quite apart from current assets,
which totalled $91,691,447 as compared with $27,344,834 of
current liabilities. Accordingly the Company has special
assets, quite apart from its railway lines and steamships,
equal in value to over $105 per share on the stock or within
$20 of its present market value.
Deduct. ng prior ranking securities, cui-rent liabilities
and the various replacement and contingent reserves, it will
be found that the Common Stock has a book value of $249
per share.
But even before the great rise in constructiop costs dur-
ing the war, C.P.R. was generally conceded to have been con-
structed at very low cost. A comparison of its cost per mile
with that of the Grand Trunk Pacific and National Trans-
continental will bear this out. Since 1913, construction costs
Brooks Ayt edict — C.P.R. Irrigation System —
10,480 Feet Long
have gone up one hundred per cent, and in estimating the
replacement value of the road, the figures at which the rail-
way lines stand on the books might be doubled without pos-
sible criticism. To be conservative, however, let us increase
the amount of this item by $274,249,378, or 50 per cent.
This would give the stock a value of $360 per share.
THE MONETARY TIMES
Volume 66
1919, 1920,
Province. acres. acres.
Alberta-
Potatoes 15,8-18 43.000
Turnips, etc 12,500 12,800
Hay and clover 433,296 . 388.627
Fodder corn 900 7,644
Alfalfa 21,663 19,906
British Columbia-
Potatoes 18,000 17.780
Turnips, etc. 7,387 7,403
Hay and clover 126,251 127,017
Fodder corn 4.3G8 4,713
Alfalfa _ 13,331 18,478
Farm Live Stock in Canada
A report issued on November 3, by the Dominion Bureau
of Statistics, sliows the number of each description of farm
live stock in Canada on June 15 last, as estimated from re-
turns collected from individual farmers throughout Canada
in conjunction with the provincial governments. The total
number of horses in Canada on June 15 this year is esti-
mated at 3,400,3.52, as compared with 3,667,369 in 1919. Mules
number 9,055, as against 15,102 last year. Cattle number
9,477,380, as compared with 10,084,011 in 1919, sheep 3,720,-
783 as compared with 3,421,958, and swine 3,516,678 as com-
pared with 4,040,070. The total head of poultry is 30.505,819
as compared with 34,645,238 in 1919, the different descrip-
tions in 1920 being hens, 25,942,105; turkeys, 791,766; geese,
754,455; and ducks, 617,638. Rabbits, all in British Columbia,
number 82,146, as against 83,050 in 1919. Thus for all de-
scriptions of farm live stock, excepting sheep, the number
this year are less than last year. Sheep, which for so many
years before 1917 were declining in numbers, show a further
satisfactory increase, the number, 3,720,783, constituting a
further advance of 298,825 over last year's record total of
3,421,958.
By provinces, Prince Edward Island shows an increase
over the numbers of last year for all descriptions. In the
other provinces, horses show a decrease as compared with
last year in all provinces, except British Columbia, where
the number is 44,070 as compared with 43,717. Cattle show
a decrease in all provinces. Sheep have increased in all
provinces, excepting Manitoba, and swine have decreased in
all provinces excepting Prince Edward Island. Poultry, in-
cluding all descriptions, have increased in Prince Edward
Island, Manitoba and British Columbia, but have declined in
Nova Scotia, New Brunswick, Quebec, Ontario, Saskatche-
wan and Alberta.
The detailed figures are as follows: —
I. — Numbers of Horses, Cattle, Sheep and Swine in
Canada, 1916-1920
Live stock. 1916, 1917. 1918, 1919. 1920.
Canada— No. No. No. No. No.
Horses 3,258,342 3.412,749 3,609,257 3,667,369 3,400,352
Milch cows 2.833.433 3,202,283 3,638.600 3.548.437 3,675,897
Other cattle 3.760.718 4,718,657 6.507,267 6,636,574 5,801.483
Total cattle 6.594.151 7.920.940 10,045,867 10.085.011 9.477.380
Sheep 2.022.941 2.369,358 3.052.748 3.421.958 3.720.783
Swine 3.474.840 3.619,382 4,289,682 4,040,070 3.616,678
11. — Numbers of Farm Live Stock in Canada.
Canada— 1919, 192o.
Horses : No. No.
Stallions 49,084 44.401
Mares 1.634.724 1.504.462
Geldings 1.366.677 1.315,968»
Colts and fillies 616,884 635,621
Total 3,667.369 3.400.352
Mules 15.102 9.065
Bulls 300.471 279.659
Milch cows 3.648.437 3.676.897
Calves 2.424.229 2.141.954
Steers 840.319 782.132
Other cattle 2.971.555 2.597.738
Total 10,085.011 9.477.380
Sheep 3.421.968 - 3.720.783
Swine 4.040.070 3.516,678
Poultry :
Hens 31.785.722 25,942,105
Turkeys 839.711= 791.766
S"-'* 802.869 764.455
Dui^ks 777.692' ■ 617.638
Total 34.645.238* 30,505,818^
Rabbits (B.C. only) 83.060 82.146
'Excluding stallions in N.B. =IncludinB stallions in N.B. 'Not inelud-
mir Alberta. 'Includine 439,244 other than hens in Alberta. 'IncIudinK
2.399.S65 poultry of all kinds in Alberta.
PULP AND PAPER INDUSTRY EXPANDS
(irowth Reflected in Capital Increases — Several New Mills
Under Construction — Exports Increased Steadily in 1920
By Edward Beck
Canadian Palp ami Paper Association
TWO outstanding features mark the history of the pulp
and paper industry of Canada during the year just
passed. One is the numerous reorganizations which have
taken place among the old established companies, the other
the number of entirely new projects announced, some of
which have reached the .stage of actual development while
others are still in embryonic form. Recapitalization of exist-
ing- companies has in most cases been necessitated by busi-
ness expansion and is reflected, or will be shortly, in in-
creased production. Particulars of the new issues of securi-
ties are given in the investment section of this issue.
Some New Companies
Of the score or more of new companies incorporated
during the year a few have actual construction work under
way and in all probability will be in the producing class
within the coming year. These include the Three Rivers
Pulp and Paper Co., Ltd., capitalized at $4,000,000, now build-
ing a 100-ton pulp mill at Three Rivers, Que.; the Great
Lakes Pulp and Paper Co., Ltd., who are erecting a mill at
Port Arthur, Ont., to have an ultimate capacity of 75,000
tons of pulp and 35,000 tons of paper a year; the Fort Wil-
liam Pulp and Paper Co., Ltd., now constructing a $3,000,000
plant at Fort William to produce 120 tons of groundwood
pulp and 100 tons of newsprint paper daily.
In addition to these, important additions to the industry
will be the International Paper Co.'s new plant at Three
Rivers, now nearing completion, and which will have a daily
capacity of 200 tons of pulp and 200 tons of paper.
Price Bros, and Co., Ltd., are also preparing to go
ahead with their new development at Sag-uenay, Que., the
coming spring, work on which has been held back for a year
by various causes.
A score or more mills, not enumerated above, have in-
creased their capacity during the year or are now installing
new machinery for that purpose. The coming year promises
a largely increased output in practically all branches of the
industry.
Census I'eturns for 1919. gathered by the Bureau of
Statistics at Ottawa, give the total capitalization as of that
year at $264,581,300 and the total marketable value of the
output as $139,925,000. The 1920 figures, which will not be
available for some months, are expected to show a capital
investment of at least $300,000,000 and a production value
of more than $200,000,000.
This year's consumption of pulpwood, exclusive of ex-
ports, is estimated at 3,500,000 cords, against 2,428,691 in
1919. The year's exports of unmanufactured pulpwood will
exceed one million cords.
Export Business Growing
Pulp and paper exports for the first ten months of the
calendar year — January to October, 1920 — reached a total
value of $134,161,470, distributed as follows:—
1920. Paper. Chem. pulp. Mech. pulp. Total.
January $6,519,718 $2,658,974 $ 972.574 $ 9.151.266
February 6.304,388 2.615,156 472,383 9,391.927
March 7,231.207 3.875.281 .562.308 ll.flBsTW
April 4,729.354 2,936.633 506,369 ^.ITL :.'.
May 6.939.346 4,318,972 779,710 l_M:-iij-
•Tune 7.877,740 6,254,409 2.136,767 II, vi-.qi.
July 6,877,014 6.608,740 2,fi28.993 ir.tniTlT
August 6,746,817 6,702,644 2,809.266 lS,J--v7J7
September. 7.855.493 6,758.156 1.877.053 K;. l.Mi.TOj
October 8.128.264 6.590.944 1,986,807 ICTOCOM."
Total $70,209,331 $49,319,909 $14,632,230 $134,161,470
This compares with a total value of $78,352,826 for the
corresponding months of 1919.
The 1920 exports included 8,825,530 cwts. of news-
print, valued at $42,'>7.5,627; 38,047 cwts. of printing paper.
January 7, 1921
THE MONETARY TIMES
243
EDMONTON
The Capital City of Alberta
Holds Today the Most Strategic Position in Western Canada
GATEWAY TO THE GREAT NORTHERN OIL FIELDS, including
FORT NORMAN and PEACE RIVER, with their stores of "liquid gold,"
besides Natural Gas, Tar, Gypsum, Salt and other Mineral Resources.
rOMONTON is an important Industrial, Agricultural, Railway and Distributing
point, with three Transcontinental Railway lines; C.P.R., C.N.R. and G.T.P. and
branches, besides the Edmonton, Dunvegan and B.C., and Alberta and Great Water-
ways Railways. Educational Centre; is the seat of University of Alberta; has excep-
tionally fine Public and High Schools and Colleges. Municipally owned and operated
Electric Light and Power, Street Railway, Telephone and Waterworks Utilities, hand-
some Legislative Buildings and Government Administration Headquarters. Municipal
Golf Links. Exhibition Grounds and Buildings largest in Western Canada.
MANUFACTURERS of every description. Cilv underlaid with unlimited supplv of Coal.
Surrounding district includes some of the most productive mixed farming lands in the
West. Important Live Stock Yards. Large Packing Plants. Largest Creamery in
Canada; last year produced 3,300,000 pounds Butter.
Population
65,000 Net Assessment Land
(1920) Improvements
Civic Utilities, Gross Earnings (10
Year 1919 10 Mos. 192
Street Railway Pass-
engers 11,779,466 9,497,439 months) 1920
Building Permits $838,541 $3,166,955 Municipal Voters
Bank Clearings $233,066,784 $240,971,490 School Pupils
$61,891,965
17,299,565
$79,191,550
$2,368,064.97
26,793
12,446
THE MONETARY TIMES
Volume 66
valued at $400.r)9C; and other paper, valued at $8,077,801. The
woodpulp exported comprised 1,698,231 cwts. of sulphate
(kraft), valued at $8,715,005; 1,255,124 cwts. of bleached
sulphite, valued at $9,8.52,615; 3,675,928 cwts. of unbleached
sulphite, valued at $21,602,878, and 3,985,629 cwts. of ground-
wood, valued at $12,624,965. Countries of destination were:
Paper— United States, $40,067,276; United King-dom,
$2,811,561; other countries, $8,275,181.
Woodpulp— United States, $43,281,562; United Kingdom,
$6,193,991; other countries, $3,319,910.
Demand for pulp and paper of all descriptions remained
firm throughout the year, with some tendency to diminish
in respect to wrappings, boards, high grade papers and
specialities, towards the close of the year in sympathy with
general trade tendencies. The demand for newsprint paper
exceeded the supply throughout the year and shows little
tendency to diminish, despite the influx of some European
newsprint to the American market during the last quarter
of the year. Prices in all lines remained comparatively firm,
the cost of raw materials and of labor militating against
any precipitate deflation of market price. The industry
occupies a somewhat unusual position in respect to its in-
ventories, there being at no time any large stocks of finished
commodities in reserve either at the mills or in the hands
of the jobbers and consumers. There are, as stated, ac-
cumulations of raw materials, the industry necessitating
arranging for these many months in advance of their actual
use. What effect general liquidation may have upon the
value of stored pulpwood, woodpulp, etc., remains to be seen.
IMPORTANT INDUSTRIAL CASES DECIDED BY
COURTS
Board of Railway Commissioners Holds Average Demurrage
Plan to be Discriminatory — Proprietorship and Regis-
tration of Ownership of Trade Marks
i^.ASES dealing with matters of industrial interest during the
^ past year have in few instances been of sufficient import-
ance to reach the Courts of Appeal. The two following are
of consequence, in the first case because the reasons for the
Railway Board's finding against the average demurrage plan
are quoted, and in the second. case because the trend of the law
in Canada is shown in a decision on trade-marks.
Average Demurrage Plan
In the application to the Railway Board for an order di-
recting the extension of the Canadian Car Service Rules so as
to provide for what is known as the average demurrage plan,
the decision of the board against the adoption of that plan,
chiefly because of its discriminatory effect, was issued in Jan-
uai-y last.
The average demurrage plan, as explained by Commis-
sioner MacLean, is as follows: — "It is set out that the demur-
rage on all cars held for loading or unloading shall be com-
puted on the basis of the average time of detention to all cars
released during each caloidar month. The method of compu-
tation outlined is that a credit of one day shall be allowed for
each car released within the first 24 hours of free time. A
debit of one day shall be charged for each 24 hours, or fraction
thereof, that a car is detained beyond the first 48 hours of
free time. Not more than one day's credit is to be allowed on
any one car, and in no case is more than 5 days' credit to be
applied in cancellation of debits accruing on any one car, thus
making a maximum of 7 days, including Sundays and holidays,
that any car may be held free.
At the end of the calendar month the total number of days
credited will be deducted from the total number of days deb-
ited and the demurrage charge per day charged on the re-
mainder. If the credits equal or exceed' the debits no charge
is to be made for the detention of the cars, and no payment is
to be made to the consignor or consignee in respect of such
excess of credits. Credits in excess of debits of any one
month are no*; to be considered in computing the average de-
tention for another month. Those taking advantage of the
average plan are to forego the advantages of the weather and
of the bunching rules."
Previous Action of the Board
In 1917 a judicial decision was secured on various amend-
ments to the Canadian Car Demurrage Rules, and in June,
1919, a letter was issued by the board that it was prepared to
arrange for a hearing if the parties interested desired to add
to the record in the case. Commissioner MacLean goes on:
"The matter as presented may be subdivided into the following
headings: (a) Whether when the consignor or consignee un-
loads within the free time allowed by the demurrage rules he
has a 'right' to apply the difference between the free time
allowed and the time actually taken as a credit on another car
which is not loaded or unloaded within the free time; (b) the
advantage of such proposed system of credits as an incentive
to quicker loading or unloading; (c) the general effect on car
movements."
"On careful consideration of the evidence adduced and the
especial references made to practice in the United States, I
am of opinion that the average system is discriminatory in
principle and that it has not been affirmatively established that
it will so work out as to increase the car supply available at
any given time."
United Cigar Stores vs. Miller
In the second case referred to above, that of United Cigar
Stores, Ltd., vs. Miller, the petitioner sought to have the
words "United Cigar Stores" registered as a trade-mark and
to have the same words registered in the name of the object-
ing party expunged. These words constituted the trading-
name of the petitioner and most of the trade-marks claimed
by it were for particular brands of cigars. It was held that
on the facts as stated the petitioner was not entitled to have
the words "United Cigar Stores" registered as a trade-mark.
R. S. Smart of the Ottawa bar has made an annotation in
the Dominion Law Reports dealing with the question brought
up in the above case, viz.: If a company has a corporate name
similar to that of the petitioner, would that be a bar to any
action which might be brought against it for passing off its
goods as the goods of the petitioner? Mr. Smart says that
these rights as between two parties who use a ti-ade-mark con-
currently have never been defined in Canada.
In Canada under the Canadian Trade-Mark and Design
Act the applicant is required to be entitled to the exclusive use
of the trade-mark. In Partlo vs. Todd, Chief Justice Richie
said: "It is not the registration that makes the party proprie-
tor of a trade-mark; he must be proprietor before he can
register. I think the term 'proprietor of a trade-mark' means
a person who has appropriated and acquired a right to the ex-
clusive use of the mark."
Boston Rubber Cases
The use of the name of a corporation as a trade-mark was
dealt with in the Boston Rubber Shoe Company vs Boston
Rubber Company of Montreal, the facts and decision being: —
"The plaintiff, incorporated in Massachusetts in 1852, reg-
istered the trade-mark in 1897. The defendant in 1899 sold
rubber boots and shoes \<'ith the mark of 'The Boston Rubber
Co. of Montreal, Ltd.,' and pleaded that the mark was in
effect a corporate name and the use of it was not frauduleii'.
The Supreme Court held that the word "Boston" had become
an invented or fancied name. Sir Louis Davies said: 'It seems
to me very diflicult on the evidence to find that fraud and bad
faith were absent. The object may not have been to deceive
purchasers, but that such would have been the result I enter-
tain no reasonable doubt. The defendant company has the
right to use its corporate name for all lawful and legitimate
purposes. It has not the right to use it, however, by stamp-
ing it upon goods it has manufactured and offered for sale, if
by so doing it causes the purchasing public to'believe that the
goods are those of the plaintiff company.' Restrained use of
words 'Boston' or 'Bostons' in connection with rubber boots
and shoes by stamping circular advertising without clearly
distinguishing from the shoes of the plaintiffs."
January 7, 1921
THE MONETARY TIMES
PROVINCE OF MANITOBA
Humane Legislation is Good
Business for the State
THE experience of the Province of Manitoba in recent years
proves that laws for the benefit of the community, if well
thought out and carefully and sympathetically administered,
make for a better and more virile citizenship.
Below are listed some of the more important Acts of this kind
which have proved to be good business for the Province of Manitoba :
Public Health Nursing
In 1915 the Government of Manitoba inauRur-
ated a system of Public Health Nursing in rural com-
munities remote from hospitals and regular medical
pi-actitioners. The rural public school is the base of
operations, but the work is carried into the home not
only for the school pupils but for the mothers and
youngrer children not attending school. This work has
been invariably successful and is doing much to im-
prove the general health of the children of Manitoba,
especially in the communities of the foreign born.
At the present time there are approximately 50 of
these public health nurses operating in the rural dis-
tricts under the Provincial Board of Health.
Child Welfare
Permanent child welfare stations have been es-
tablished in a number of centres in the province. New
legislation providing for a radical and far-reaching
extension of child-welfare work in Manitoba is to
be introduced at the next session of the legislature.
Municipal Hospitals
The province of Manitoba has inaugurated a
scheme of Government co-operation with the muni-
cipalities whereby adequate local hospital accommo-
dation can be easily and cheaply acquired by any
district in the province. The procedure is simple and
in the hands of the people themselves through co-
operation with the Government and the Provincial
Board of Health. A large number of new hospital
districts have been created within the past two years
and many hospitals have been built, thus avoiding
the necessity of the long and often dangerous jour-
ney to hospitals in the large centres.
Treatment of the Mentally Diseased
Modern methods of treating the insane or men-
tally deficient in the province of Manitoba were
adopted some time ago. A View psychopathic ward
for observation and treatment of new cases was es-
tablished in connection with the Winnipeg General
Hospital, with the result that only about one-third
of those treated have been committed to the hos-
pitals for mentally diseased. The majority ha.ve
responded to the treatment at the psychopathic
ward, and most of these have been returned to their
homes quite fit to assume once more the duties of
citizenship. At the hospitals the treatment is now
remedial instead of custodial.
Mothers' Allowances
The Manitoba system of Mothers' Allowances,
sometimes called Widow's Pensions, was instituted
in 1916. It is not considered as charity, but rather
as a matter of good business for the community at
large by insuring that fatherless children should
have the benefits of the care of their own mothers
and thus be afforded an equal chance with other
children to grow up into healthy, well-educated citi-
zens. The Manitoba Mothers' Allowance system is
the broadest in application and the most generous
in scales of allowances known on the North American
continent.
Minimum Wage Law for Women
The Minimum Wage Law for Women which
came into effect in 1918, was the first of its kind
in Canada and has proved most successful, result-
in great benefits to the women engaged in all
branches of industry in the province. It not only
sets a minimum wage based on the cost of living, but
dictates hours of labor and conditions as to safety,
sanitation and comfort which are rigidly enforced.
The Narcotics' Act
The Manitoba Narcotics Act is one of the most
comprehensive and most stringent known, and is
being carefully enforced with excellent results, re-
ducing the ravages of habit-forming drugs to a
minimum. The Manitoba sy.stem has to its credit
scores of authentic permanent cures of drug addicts.
THE MONETARY TIMES
Volume 66
IRON AND STEEL IN 1920
Material Developments Were Not Kemarkable — Many Am-
bitious Plans Formulated, but Some Are Still Pending-
Average Production Ahead of Last Year
WHILE the Canadian iron and feteel industry underwent
sorhe development in 1920, progress was not remark-
able. Production during the first nine months of the year
was ahead of 1919, but failed to show the increase made in
previous years. Complete figures of the production during
the latter three months are not yet available, but the situa-
tion was not quite as satisfactory. The general industrial
slump affected the industry, while the labor situation in the
province of Nova Scotia, in connection with the Dominion
Steel Corporation and the Nova Scotia Steel and Coal Co.,
was detrimental.
The total production of steel (including ingots and
ilirect steel castings) in Canada during the first nine months
of 1920, according to statistics collected by the Mines
Branch of the Department of Mines, Ottawa, was 94.5,282
short tons, or an average of 105,931 tons per month as com-
pared with a total production during the corresponding period
in 1919 of 770,053 tons, and an average monthly production
throughout the whole of 1919 of 86,157 tons. The production
of the steel during the nine months included: 901,188 tons
of ingots and 44,094 tons of direct castings. The- production
in electric furnaces was 18,323 tons and in open-hearth, con-
verter, crucible or other furnaces, 926,959 tons. Comparative
figures are as follows:—
1916.
January \
February I
March - 580.563
April ,
May I
-June
July 100.817
August 107.273
September 113.411
October 123,469
November 124,431
December 116.265
1917.
1918.
1919.
1920.
130,991
145.808
120.297
102.7.09
120.674
138.975
100,531
94.245
152.420
158.234
111.793
109,027
1 139.734
166.612
S3.445
103.578
155.411
174.275
77,146
100.965
137.161
165.973
76,185
101,935
139,222
165.022
73.536
105,394
145,934
170.495
60,226
117.460
149,000
166.725
66.894
110,369
161,297
184.115
73,716
158,122
129,255
92,328
155,967
117.965
97.789
Average monthly
106.268 145,494 156.954 86.167 105,931
Pig Iron
The total production of pig-iron in Canada during the
first nine months of 1920, according to statistics collected by
the Mines Branch of the Department of Mines, Ottawa, was
806,488 short tons (800,608 tons made in blast furnaces and
5,880 tons made in electric furnaces from scrap steel), as
compared with a production during the first nine months of
1919 of 710,114 short tons. The average monthly produ'rtion
of pig-iron during the first nine months of 1920 was 89,610
tons as compared with an average monthly production
throughout 1919 of 76,482 tons.
The blast furnace plants active during the first nine
months were those at Sydney and North Sydney, N.S., Hamil-
ton, Port Colborne and Sault Ste. Marie, Ontario. The blast
furnace plants at Midland, Parry Sound, Deseronto and Port
Arthur, Ontario, were idle throughout that period. At the
end of September, 10 stacks were active and eight idle. Pig-
iron was made from scrap iron and steel at four electric
furnace plants located at Hull, Montreal and Shawinigan-
Falls, Quebec, and Orillia, Ont. The monthly production of
pig-iron in short tons since 1916 has been as follows: —
.Tanuary
February
March
April ...
.lune
July ....
August
September
October
November
December
1916.
1917.
1918.
1919.
1920.
>
89.187
74.239
103,963
81.494
83.801
78,507
86.840
70,864
-562.097
103.789
96,848
91,286
77,155
100.564
104,331
93. .W9
86.303
108.891
104,867
83,059
97,593
99.998
103,037
66.470
89.258
92.012
93.499
109,723
60.927
94,417
.87.864
100,727
96.164
67,404
104,482
102.744
100,690
95,102
56.806
104,922
113.608
103.277
106.962
56,049
104,436
97.905
106.585
73,092
106.496
87.152
1,170.480
119,186
78.526
1,169,257
1.195,551
917.781
Average monthly 97,438 97,540 99,629 76,482 89,610
The formation of the British Empire Steel Corporation,
if it had materialized, would have been a great event, but
the end of the year found the situation very uncertain. For
various reasons, not very widely known, the deal failed to
go through as formerly planned. Small companies were
dropped out, because of financial reasons, and the exclusion
of Canada Steamships is now under consideration, at least
that is the impression in many circles.
United States Competition
United States competition in domestic trade is another
factor of considerable importance. The United States Steel
Corp., through its subsidiary, the Canadian Steel Corp., Ltd.,
is now well under way with its plant at Ojibway, Ont., on
the Detroit River, opposite Detroit. The initial capitalization
for this purpose was $20,000,000, since raised to $25,000,000.
The plant will be provided with blast furnaces, open hearth
steel works, rail mill, wire mill, structural and bar mills,
sheet mill and, perhaps, some other mills, together with all
necessary plant auxiliaries, such as docks, by-product coke
plant, power stations, pumping plant, machine shops,
foundries, etc.
The Algoma Steel Corporation is constiructing a struc-
tural steel mill at Sault Ste. Marie, Ont., at the cost of
approximately $7,000,000. Work is progressing rapidly, and
the plant is expected to be completed within the next few
months. Equipment will be installed that will enable the
corporation to produce structural steel shapes up to 24-inch
channels and beams. Ultimately, it is intended to produce
27-inch beams when the demand for this size is sufiiciently
large in Canada to warrant this. Canada's imports of struc-
tural steel of all descriptions have been estimated at approxi-
mately 300,000 tons a year. At the outset the Algoma Cor-
poration plans to produce about one-third of the entire require-
ments of the Dominion, and it will eventually manufacture
enough structural material to provide for all domestic needs.
In addition to the initial output of 100,000 tons of structural
steel, it is planned to roll the greater part of the corporation's
rail products in the new mill. Thus within the next year the
output at the Sault will be raised from 300,000 to 400,000
tons of steel per year, and the number of men on the pay-roll
will be raised from 3,000 to 3,600. Steel rails are rolled in
the present mill at the Sault up to 105 pounds. It is the in-
tention now to provide for the rolling of rails up to 125
pounds in connection with the new structural steel mill.
Baldwin's Ltd., the large corporation of Wales, located
a Canadian plant at Toronto, under the name of the Baldwin's
Canadian Steel Corporation. The company is operating, but
is not yet in full swing. The next year, however, will bring
some new developments, provided the power shortage can be
overcome.
British Columbia is aiming at intensified development
of the steel trade. A company, under the name of the Coast
Range Steel, Ltd., has been incorporated with a capital of
$15,000,000, and plans are now being formulated for the erec-
tion of a plant. The matter has been discussed with the pro-
vincial government, which has signed an agreement to pay
the bounty of $3 per ton on pig iron, as specified in its
legislation, and which will accord the project every support.
No particularly large local financial interests are connected
with the scheme, the principal backing being British capital,
which, if the report of the engineers is favorable, will be un-
limited, it is said. As yet there is no talk of proposed loca-
tion of this industry. If established, it will doubtless be on
the mainland, as many other industries closely follow steel,
and while coal and other raw materials are to be found on
Vancouver Island, transportation and other advantages are
in favor of the mainland.
The only other important development in the. west was
the opening of the open-hearth furnace plant at Selkirk, Man.,
by the Manitoba Rolling Mills Co., at a cost of $1,000,000.
This plant, when operating at full capacity, can produce from
four to six heats per twenty-four hours, or from 60 to 90 tons
of steel ingots per day. Scrap iron, mixed with a small
quantity of iron ore, ferro manganese and ferro silicon, make
the ingredients of "the steel manufactured by this process.
Soft coal, of certain grades only, from the western mines are
used.
THE MONETARY TIMES
WmnipeR Electric Railway Company's Hydro-Electric Plant OT Winnipeg River— Capacity of Sil.llOn h.p
POWER, LIGHT AND GAS
For Industrial and Commercial Purposes in
Winnipeg and St. Boniface
LARGE GAS
WORKS
The Winnipeg Klectric
Railway Co. supplies gas to
thousands of consumers in
Winnipeg and district.
The plant is completely
modern and has an output
of S0(),()0(),()00 cubic feet
l)er annum.
AUXILIARY STEAM
PLANT
In addition to the I'inawa
plant shown above, the
W'innipeg Electric Railway
Co. also has an auxiliary
steam plant at Mill St.,
Winnipeg, capable of de-
veloping 12,000 h.p. and
thus ensuring customers
of a continuous service.
LOW
RATES
The Character and Strength of the Winni-
peg Electric Railway Co. is reflected
in this imposing building.
The largest Manufacturing Establishments in Greater Winnipeg are
Power, Light and Gas Customers of Winnipeg Electric Railiva]) Co.
RELIABLE
SERVICE
Klectric Railway Co
-The Great Falls de
-Capacity IBH.OOO h.p.
WINNIPEG ELECTRIC RAILWAY C
Sir Augustus Nanton, President.
OMPANY
A. W. McLIMONT, Vice-Pres. & Gen. Mgr.
THE MONETARY TIMES
Volume 66
Ontario Still Leads in Industrial Activity
Manufacturing Centres Experience Satisfactory Growth — Building Operations
Were Retarded to Some Extent By the High Cost of Material — Power Short-
age in Ontario Had the Effect of Discouraging the Establishment of New
Plants and Also Reduced the Capacity of Industries Already Operating
ONTARIO, which is still the leading manufacturing pro-
vince of the Dominion, has been prosperous during 1920,
at least this is the indication in the reports from representa-
tive municipalities to The Monetary Times. Industrially there
has been large expansion, although building operations vi^ere
retarded to some extent by the high cost of materials. Power
shortage in Ontario had the effect of discouraging the estab-
lishment of new plants there, and at the same time reduced the
capacity of the industries already operating. Nevertheless
conditions cannot be described in any other term but satis-
factory.
Generally speaking, the greatest expansion took place dur-
ing the earlier part of the year. In the early summer busi-
ness readjustment in the United States began to make itself
felt here, which condition developed more highly in the latter
months.
Investment of American capital in branch plants was ?
favorable feature, although not quite so favorable as in 1919.
Early in the year readjustment was looming on the horizon
and wise American business men adopted a very conservative
attitude, refraining from investing extensively in any new en-
terprises.
28 Xew Industries for Toronto
Toronto's new harbor sites and other industrial advant-
ages have brought many new industries in 1920. Up to De-
cember 10, 28 had been secured, the following list being
furnished to The Monetary Times by E. L. Cousins, indus-
trial commissioner: — A. Stein and Co., Chicago, 111. (Paris
Garter); Sturgis Steel Go-Cart Co., Sturgis, Mich.; Q.R.S.
(Player Piano Rolls), Chicago, 111.; K. and S. Rubber Goods
Co., Weston, Ont.; Empire Timber and Tie Co., Blind River,
Ont.; Safe-Cabinet Co.; Canadian Farnsworth Co., Conshocken,
Pa.; Arco Paint Co., Cleveland, O.; Cerebos Salt Co.. Hull,
Eng.; United States Hoffman Machinery Co., New York;
Walker Dishwasher Co., Syracuse, N.Y.; Republic Stamping
and Enamelling Co., Canton, Ohio; Hickok Mfg. Co.,
Rochester, N.Y.; Davis-Bournonville Co., Jersey City, N.J.;
Dominion Carbon Brush Co.. Toronto, Ont.; Gabriel Snubber
Co., Cleveland, Ohio; Triangle Conduit Co., Brooklyn, N.Y.;
Bastian-Morley Co., Laport, Ind.; Flexo Tire Filler Co., Cal-
gary, Canada; Willard Storage Battery Co., Cleveland, Ohio;
Brokaw-Eden Co., New York, Canadian Co., Gillespie Eden
Co.; Chicago Flexible Shaft Co., Chicago, 111.; Auto Knitter
Hosiery Co., Buffalo, N.Y.; Exide Storage Battery Co., Phila-
delphia, Pa.; Northwestern Chemical Co., Marietta, Ohio;
Lorraine Chocolate Co., Toronto, Ont.; Feldspar Milling Co..
Tichbourne, Ont.; Liquid Carbonic Co., Chicago, 111.
"Many of these industries," said Mr. Cousins, "have
entered Canada feeling somewhat uncertain as to the volume
of trade which they will be able to command, and in many
cases have only been desirous of leasing floor space in
existing commercial or manufacturing plants. The high
cost of building construction has, of course, also been de-
terrent to these companies. We are glad to report, however,
that several concerns who early in the year were satisfied
with leasehold space have now definitely cast in their lot
with Toronto, and have purchased or about to build factory
premises of their own.
"I may say that there are 175 American industries with
branch plants now in Toronto.
"In addition to the new industries above referred to,
factory extensions of previously established industries to
the amount of $6,337,475 have been made this year.
"The above information, I think, clearly indicates that
Toronto has had at least a fair share of industrial activity.
and with the recent arrangements concluded with the Mac-
kenzie Electrical interests, together with the Hydro Power
completion of the Chippawa development, we may confidently
look forward to a very great industrial and commercial ex-
tension in Toronto in the next few years."
Hamilton Prosperous
Despite the handicap of electric power shortage, from,
which practically all of the Ontario municipalities have been
suffering for the past tv/o or three years, Hamilton during
1919 enjoyed another period of unusual industrial develop-
ment and prosperity. Lack of a sufficient power supply un-
questionably kept a number of large manufactui'ers, particu-
larly Americans, from locating, but inasmuch as the conditions
existing in Hamilton were typical of power conditions existing
in other desirable Canadian manufacturing centers, the major-
ity of the industries did not decide to locate elsewhere, but
wisely deferred action until such time as conditions right
themselves and the situation becomes normal. Present indi-
cations are that with the coming of spring, or about April 1st,
power problems, at least so far as industries are concerned,
will become a thing of the past, and as a result increased in-
dustrial activity may be looked for during 1921.
But to get back to 1920, Hamilton has no reason to com-
plain of its industrial growth during this year of more or less
abnormal conditions. In fact, with the exception of 1919, it
was probably the best year the city has enjoyed industrially
since 1911. A total of 25 new industries were added to the
city's already long list, and while the majority of them were
comparatively small, being capitalized at from §25,000 to
$100,000, many of them are branches of large American con-
cerns that give promise of speedy development providing that
tariff and other conditions continue favorable to Canadian in-
dustrial growth. Among the branches of American concerns
to select Hamilton as their Canadian headquarters were Peter-
son Core Oil Co., Chicago, 111.; Canadian Nathan Co., New
York, N.Y.; Don-0-Lac Co., Rochester, N.Y.; Metlskin Co.,
Rochester, N.Y.; Moto-Meter Co., Long Island City, N.Y.;
Libbey-Owens Co. (plate glass), Charleston, W. Va. Ameri-
can capital is largely interested in others of the new indus-
tries, although they are not actually Canadian branches of
existing American companies.
In addition to the new industries secured there was, dur-
ing the year, marked development among the existing indus-
tries. "The Dominion Foundries and Steel Company recently
completed the erection of new buildings and installation of one
of the finest plate mills on the continent, at a cost of a million
and a half of dollars; the Canadian Cottons, Ltd., has nearing
completion a seven-story spinning mill which represents an
outlay of close to a million dollars; the Steel (jompany of
Canada has under construction a wire products mill which rep-
resents an expenditure of about half a million dollars, while
the Mercury Mills, Chipman-Holton Company and other textile
industries made very considerable extensions during the past
twelve months. The progress of the city can best be gauged
by the assessment returns, completed on October 1st last,
which show an increase for the year in the assessment of up-
wards of $30,000,000, and in the population of 6,623.— C. W.
Kirkpatrick, Industrial Commissioner.
Guelph Will Grant Concessions
The new industries secured in the city during the year 1920
are the Moncrief Furnace and Manufacturing Co., the Canadian
branch of the Henry Miller Foundry Co. of Cleveland, Ohio.
This company is about to erect in the city a modern foundry
and plans to this end are now being prepared. Erin Casket
Works is the name of another industry recently secured, which
January 7. 1921
THE MONETARY TIMES
BRANDON
The Agricultural Convention City and Home of the Manitoba Provincial Summer Fair
-i ^ - J
%^A3m^
1
mat,.-
"■^■■;^^^^^^^^^^^^^^
FAMOUS FOR ITS EXHIBITIONS OF LIVE STOCK AND FARM PRODUCTS
THE SECOND CITY
nportant distributing point for Agricultural
Wholesale Houses. Served by the Cani
CONSOLIDATED
OF IMPORTANCE IN THE PROVINCE
Implements and Machinery, with numerous Manufacturing Industries and
dian Pacific, Great Northern and Canadian Government Rail^vays
BALANCE SHEET fo" period of January ist to
ASSETS
Cash S 80,7;) 1 .95
Land... 282,994.06
Structures and Improvements 2,733, 1 80.4 1
Hquipmeut 211 ,838.46
LIABILITIES
Debentures outstanding IpS, 549, 246.03
Improvements under construction...
Stores
Tax Lands held for sale
14,342.08
43,449.42
5,243.63
Amounts due the City for Taxes,
Water Kates, etc 651,426.14
SinkiuK Funds Investments 1,106,382.60
«i5,154,848.77
Bank Loans
Accounts payable
Debenture Interest payable
Reserves: —
Debenture Interest not due
Provincial and School Levies not due
Suburban Park
Aid to (General Hospital
Depreciation
Bad Debts
Surplus
86,750.00
10,132.84
7,019.92
32,406. 1 3
108,284.40
• 3,871.63
72,000.00
64,936.02
24,586.88
1,175,614.88
$5,154,848.77
STATISTICS— REAL PROPERTY
Estimated Value $22,750,000 As.sessed §15,365,974 E.xempted .■J4,641,018
Basis of Assessment - Land at Market Value - Buildings at two-thirds Market Value
Tax Rate 35 Mills on §
Current Taxes paid in 1919 - 71.5 per cent. Total Taxes paid in 1919 - 97.4 per cent.
Current Taxes paid in above period - 57.9 per cent. Total Taxes paid in above period - 83.7 per cent.
Area - 5,760 acres Present population - 15,500
Bank Clearings 1919 - $36,922,771 Customs Receipts 1919 - $291,347.78
Sinking Fund Investments $1,100,000 Dominion of Canada V'ictory Bonds
HARRY BROWN,
City Clerk.
GEORGE DINSDALE,
Mayor.
GEO. F. SYKES,
City Treasurer.
250
THE MONETARY TIJIES
Volume 66
will make oaken caskets. The Guelph Brass Works, a new
industry, was secured in the spring of this year, as well as
the Federal Electric Washing Machine Co. from Chicago. The
Regent Te.xtile Co. from Montreal have purchased a factory
building in June last, and are now planning large additions.
The Sherer-Gillett Co. of Chicago purchased from the city of
Guelph a factory building on Suffolk street, which building
they have had greatly enlarged, and in which they expect to
commence manufacturing by the 1st of December. This com-
pany has also acquired a large piece of additional ground and
they announced their intention to erect on this in the spring
of 1921 a modein food factory. The Shinn Manufacturing Co.,
from Niles, Mich., have purchased a property on Woolwich
street, and are now erecting an addition three storeys in
lieight, .5.3 feet wide by 90 feet long, and in this addition the
National Standard Co., from Niles, Mich., is to manufacture
automobile braid. The Canada Ingot Iron and Culvert Co. are
erecting an entirely new factory building between George and
Clarence streets. The plan calls for two buildings, 48 feet
long by 292 feet wide, and 120 feet long by 132 feet, wide.
These two buildings are now nearing completion, and are ex-
pected to be occupied by the company by the first of the year.
The city is still prepared to consider granting a fixed as-
sessment to new manufacturers for a term of ten years, and
in many other ways encouraging them to come to this city. —
H. Westoby, secretary. Chamber of Commerce.
Chatham Progresses
Some local plants have built extensions during the past
year. The Dominion Sugar Co. has installed a special machine
and equipment for handling part of their by-product. This is
the only equipment of its kind on the American continent.
The Hayes Wheel Co. has added to its plant and has installed
a modernly-equipped rear axle assembly plant. The Dowsley
Spring Co. has erected a large building, steel-constructed, for
the manufacture of springs. This is a big improvement to
the building which was some time ago destroyed by fire. The
city has erected and has in operation a modern asphalt plant,
used in connection with street paving and pavement repairs.
The Canadian Fertilizer Co. has made quite an extensive addi-
tion to their building, and the Chatham Malleable and Steel
Co. now has quite a large addition under w-ay. The Gray-
Dort Motors, Ltd., has taken over all the plants of the William
Gray Sons-Campbell Co.. and has made some additions and is
installing the most modern of automobile manufacturing ma-
chinery. Two companies have purchased buildings in the city
and wall be opening their manufacturing in the course of a
few weeks. — Manager, Chatham Chamber of Commerce.
• The Twin Cities
Recent expansions industrially are the inclusion of manu-
facturing pulp and paper and mining machinery in the opera-
tions of the Port Arthur Shipbuilding Co., Ltd., which will
mean an increase of approximately 600 skilled employees and
erecting an open-hearth furnace; also the building of the Kam-
inistiquia Pulp and Paper Co., Ltd.'s, new pulp mill. It is
understood that the local branch of the Provincial Paper Mills,
Ltd., is about ready to increase its output to 100 tons pulp and
50 tons newsprint per day. Plans for two other pulp and
paper mills are about completed. During the year the Port
Arthur Wagon Works has become the property of John Stir-
rett & Sons, who are expanding into a general wood-working
business.
Port Arthur is also extremely fortunate in being sur-
rounded with a country that ofl'ers unlimited recreational and
vacational facilities. These attract each summer many thou-
sands of tourists, 32,000 in 1920, and this is rapidly becoming
one of the community's chief industries. — M. Francis, secre-
tary-treasurer. Port Arthur Board of Trade.
The present year has witnessed further demonstrations of
faith in Fort William's industrial future. The most important
item of record during the present year is the establishment
here of the Fort William Paper Company. This company is
now erecting pulp and paper plants having a capacity of not
less than 100 tons of pulp per day. The plant is to cost not
less than $3,000,000 exclusive of the cost of land; it is located
on what is known as the Mission site. The conti'act for the
construction of the plant has been placed in the hands of Har-
nett & McQueen of Fort William. The pulp mill is to be com-
pleted ready for operation not later than June 1st, 1921, and
the paper mill will be ready for operation not later than Aug-
ust 1st, 1922. There can be no doubt that the establishment of
this mill will lead to the establishment of subsidiary industries
— paper boxes, wood fibre, wallboard, etc.
An extensive addition has been made to the plant of the
Canada Starch Co. in order to provide additional storage for
the finished product; a large fabricated steel warehouse has
been erected. The Canadian Pacific Railway Company is at
present extending their coal-handling and storage plant on
Island No. 2. The storage capacity at this point will be almost
doubled. The Ogilvie Flour Mills Co. has completed the con-
struction of a feed mill in conjunction with their flour-milling
industry. Feed plants have been erected by James Davidson
and the Mount McKay Flour and Feed Co. The Northwestern
Elevator Co. has completed an annex to their grain storage
elevator.
The Canada Car and Foundry Co. has large orders on hand
for raihvay rolling stock; work has been retarded by non-deliv-
ery of material. Other foundry and engineering industries
have been fully employed. — W. A. Webster, secretary. Board of
Trade.
London's Rapid Growth
The fact that nearly half a million dollars has been ex-
pended in London during 1920 in industrial expansion is cited
as proof positive that the Forest City has already entered upon
a period of great industrial growth. Indications are that this
sum will be doubled in factory buildings next year. The
greater portion of this money has gone to London workmen
engaged in the construction or kindred trades. Among the
larger firms that have expanded or have undertaken new wor'K
are the folloviing: The Ruggles Truck Co., McClary Manufac-
turing Co., C. S. Hyman Co., Murray Shoe Co., Simmons Bed,
Spring and Mattress Co., and Greene-Swift, Ltd.
It is kno^vn that several of these are also planning for
large additions to be constructed next year. Several new fac-
tory buildings will be started early in the spring. The Ser-
vice Truck Co. will build an extensive plant next year, the
foundations for which will be laid this winter. The Rawleigh
Drug Co. is planning to erect a six-storey factory building on
Adelaide street, work on which will commence early in the
spring, and there is a probability of a new motor car factory
being erected in the east end of the city during the coming
year. — Secretary, Chamber of Commerce.
Oshawa Open for Industries
The Samson Tractor Co. has located here during the year
and General Motors have added a new building to their plant,
including the Oldsmobile Motor Co., while the Pedlar People
have moved into their new plant. Building has been very
brisk, General Motors alone erecting numerous houses for their
employees, as well as the Ontario Housing Commission. The
General Motors, Ltd., recently gave the tovm of Oshawa a 65-
acre farm on the lake front as a park for the town people, as
w-ell as $3,000 cash to commence immediate preparations for
beautifying same. Steps have been taken with the Dominion
government to have the harbor put in commission for the large
lake vessels. Oshawa is booming and has many advantages
open to new industries. — J. A. McGibbon, secretary. Board of
Trade.
Stratford Has Healthy Growth
Stratford has experienced a very healthy growth during
the past twelve months and all the industries located here are
in good sound condition. Within the past year the Canadian
Edison Appliance Co., Ltd., have established a Canadian
branch, and are at the present time employing approximately
300 hands. The Gerlach-Barklow Co., Ltd., high-class art
printers and lithographers, removed their Canadian plant from
Toronto to Stratford and have purchased the building formerly
occupied by the Stratford Clothing Co. The building has been
completely remodelled and is now equipped for their work. It
is anticipated that a further addition to the building may be
made in the near future. The parent company of this organi-
zation is at Joliet, 111. The Kindel Bed Co., Ltd., have again
January 7, 1921 THEMONETARYTIMES 251
|iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiH^
The City of Winnipeg |
I MANITOBA, CANADA \
I Has its own Municipal Electric Power Plant and Supplies |
I Current to |
I Manufacturers at less than 1 cent per K. W.H. and Householders |
I 3' cents Lighting, 1 cent Cooking |
I The Cheapest Rate in America |
I Present development 47,000 H.P. Ultimate capacity 100,000 HP. |
WINNIPEG
is the central distributing point for the whole of Canada, and offers greater
attractions for MANUFACTURERS than any other city in Canada. It is the
logical location for factories, having cheapest power, abundance of soft water,
raw material, and finest transport facilities in Canada.
Move your plant or put a branch factory in Winnipeg
For full particulars write
Citu tight dPomer
I WINNIPEG, CANADA \
iiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
THE MONETARY TIMES
built a very large addition to their former plant. The busi-
ness of this concern has so increased that it has been found
necessary to build extensively since commencing operations.
The Grosch Felt Shoe Co., feeling the necessity of enlarg-
ing their business, which was formerly at Milverton, Ont., lo-
cated at Stratford, and they purchased the building previously
occupied by the Stratford Desks, Ltd. They carry on the man-
ufacture of felt shoes and boots at the Stratford plant, but the
manufacture of the felt is still carried on at the Milverton fac-
tory. Stratford affords good opportunities for industrial loca-
tions, being centrally located in the very heart of western On-
tario. It is a main divfsional point on the G. T. R. system,
and shipping facilities are good. Educational institutions,
recreational grounds and park systems afford conveniences to
the public and render it a pleasant place to live in. These fa-
cilities are a great benefit to the working man and should be
taken into serious consideration by a manufacturer in his deci-
sion re locating. — A. W. Deacon, secretary, Chamber of Com-
merce.
St. Catharines Expands
Dui-ing the past year the city of St. Catharines has experi-
enced considerable growth industrially. Two new industries
have located here during 1920, both Canadian branches of
American companies, and there is every indication that they
will develop into concerns of considerable magnitude. The
chief industrial development, however, has been along the line
of gradual expansion of the well-established concerns here who
have been extending their buildings and increasing their out-
put as well as adding new lines to their products.
St. Catharines through its recently-formed Chamber of
Commerce assisted in such development in various ways. A
housing company has been promoted to take care of the needs
of the city in this direction, and steps are also being taken to
promote the extension and development of transportation and
other facilities necessary to industrial expansion. The many
advantages that this city and district has to offer in the way
of cheap power, rail and water transportation, close proximity
to large centres, a labor market highly skilled in the various
trades, educational facilities, etc., indicate that there is everj^
prospect for the rapid growth of this district industrially. —
Secretary, Chamber of Commerce.
Power Situation Hinders Welland
Dillon Crucible Alloys has undergone a change of name
and management during the past few months. This firm is
now known as the Canadian Atlas Crucible Steel Co., and their
product is the same as heretofore — i. e., tool steels of various
qualities. The control of this plant has been acquired by the
Atlas Crucible Steel Co. of Dunkirk, N.Y., and they are now
here in Welland making the same high-grade alloy steels as
they make in the United States One other addition has been
made to the list of Welland industries; that is the Jos. Stokes
Rubber Co., Ltd., and a plant has been built here for the produc-
tion of hard rubber goods, and beginning in December this yeav
they will employ about 100 hands. This firm is an offshoot of
the Jos. Stokes Rubber Co. of Trenton, N.J., whose products
are well and favorably known throughout the United States.
It is expected that this new factory here will, within a reason-
able time, increase to a plant of quite large proportions.
As regards the power situation I have to say that, like
every other place in western and central Ontario, we need
power badly, and are anxiously waiting the completion of the
Queenston-Chippawa development. The hydro authorities,
through Sir Adam Beck, tell us that this will be ready for de-
livery next September. This is mighty good news, for we are
to a certain extent marking time until we get it. — Geo. Day,
Industrial Commissioner.
Kitchener
The year has been marked, industrially, by healthy expan-
sion of well-established manufactories rather than the ingress
of new industries. Among the larger expansions are the
Lang Tanning Co., Ltd., which a year ago added the manufac-
ture of sole leather, and again this year are spending some
$200,000 in new buildings and equipment. The Dominion Tire
Co., Ltd., has continued its policy of expansion and new build-
ings and equipment to the value of nearly a quarter of a mil-
lion have been erected and installed or are in process. The
Kaufman Rubber Co., Ltd., are erecting a large addition to its
mammoth plant manufacturing rubber footwear, the extensions
forming a substantial industry of themselves. The Ames-
Holden Co. have completed the equipment of their automobile
plant and were just reaching the quantity-production stage
when the slackening up of the demand for tires reached Can-
ada. This firm, however, have their felt footwear factory op-
erating at capacity and it forms a substantial addition to the
city's industries.
Transportation facilities have been improved by the Can-
adian Pacific Railway Co. building a new approach into the
city for their freight line (electric, from Gait), and this com-
pany is spending about half a million dollars upon relaying
their tracks and otherwise bettering their equipment to give a
speedier and more frequent service, both passenger and
freight. Interswitching gives manufacturers in all parts of
the city quick and ready facilities for movement of incoming
and outgoing freight. To facilitate the distribution of electric
power (obtained from the Niagara system) the city has under
erection a sub-station in the north ward. — E. J. Payson,
secretary. Board of Trade.
Owen Sound Growing
Owen Sound is growing. During the past year several
new industries have located here, viz.: The Clinton Knitting
Co., the Circle Bar Knitting Co., the Grey Mattress Co., and
Taylor Bros.' jam factory.
The Clinton Knitting Co. have already found their prem-
ises too small and are enlarging their factory to double capa-
city. The Circle Bar Knitting Co. occupy a large three-storey
building and are contemplating building an addition. Another
new industry is just about ready to commence manufacturing,
viz.: The Slade Manufacturing Co., manufacturers of electric
washing machines. This firm is now installing machinery and
expect to commence operation about January 1, 1921. — Geo.
Menzies, secretary-treasurer. Board of Trade.
Gait Production Sustained
An industrial survey for Gait for 1920 shows that produc-
tion was well sustained in all lines, scarcely any easing off
occurring until November. Two shoe factories were added to
the colony, making five in all. The McCaskey Systems, Ltd.,
coming here from Toronto, are now in fine quarters, rapidly
extending their Canadian business. W. A. Dixon, bread and
cake rnanufacturer, has in process of erection a model build-
ing to house a model plant. The R. McDougall Co., lathes,
tools, etc., have completed a couple of large additions to their
shops, and the Gait Knitting Co., in order to widen their work-
ing space in the mill, have built a handsome office adjoining,
the second floor of which will be used for rest and recreation
rooms. Many proposed additions have been postponed on ac-
count of high building costs. Transportation facilities are be-
ing improved, the C. P. R. being now engaged in spending |1,-
000,000 for the same in the city and immediate vicinity on
their electric feeders. — Board of Trade.
Seven Industries for Belleville
During the past year seven new industries have located in
Belleville, one of them being a branch of an American industry,
namely, the Teco Company, makers of pancake flour. Other
industries are: H. A. Wood Manufacturing Co., Ltd., makers
of automobile valves; Toronto Hat Co., Ltd., hats and caps;
Natural Tread Shoe Co., Ltd.; A. S. Richardson Co., Ltd., man-
ufacturers of wax figures and shop fixtures. The Elliott Wood-
working Machinery Co., Ltd., along with the four last-named
industries, moved here from Toronto, where they found much-
improved conditions in labor and power. Another new indus-
try is the Judge-Jones Milling Co., Ltd., who have built an
elevator with storage capacity of about 40,000 bushels.
There is also the prospect of our securing a new glass in-
dustry, and some others, all of them being attracted by the
very desirable labor conditions and the populous surrounding
country from which this city draws labor by motor bus, etc. —
J. Bone, president. Chamber of Commerce.
January 7, 1921
THE MONETARY TIMES
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ALBERTA
Estimated Yield and Values of Agricultural Products and
Live Stock, 1920
.\cres
Vielit per -•Vcre
Bushels
I'rice
Revenue
.\11 Wheal
4,074,483
21.50 Bu.
87,601,385
$ 1.34 Bu.
SpriiiK Wheat
4,03(S,483
21.50
86,784,385
1.34
8116,291,075.90
Winter Wheat
38 ()()()
34.00
912,000
1.44
1,313,280.00
Oals
3,089,700
38.50 118,953,450
.32
38,065,104.00
Barley . .
480,699
28.00
13,459,572
.60
8,075,743.20
Flax
103.700
8.25
855,525
1.50
1,283,287.50
Kve
l(i().96()
8,398
23.75
30.75
3,822,800
258,238
1.25
.50
4,778,500.00
129,119.00
Mixed Ciraiiis
Ha)' and Clover
403,433
2,899
2,305
1.03 Ton
17.00 Bu.
17.00
•524,462 Tons 20.00 Ton
49,283 Bu. 2.50 Bu.
39,185 4.00
10,489,240.00
123,207.50
156,740.00
Beans...
Potatoes..
43,000
175.00
7,525,000
1.00
7,525,000.00
Root Crops
1 2,300
250.00
3,075,000
1.20
3,690,000.00
.\niinals Slaughtered and
Sold
38,000.000.00
34.000.000.00
730,899.98
Wool Clip (1,740,239 Ibs.l
Game and Furs
2,2.50,000.00
Poultry and Products ..
5,000,000.00
Horticulture
7,909,542
Total
2,285,000.00
Total acres grain
Live Slock
$274,186,197.08
Number
Price
Revenue
Horses
741,851
S90.00
866,766,590.00
Milch Cows..
305,607
80.00
24,448,560.00
Other Cattle
1 ,050,334
50.00
52,516,700.00
Sheep and Lambs.
383,424
10.00
3,834,240.00
Swine
286,556
20.00
5,731,120,00
Poultry..
2,399,855
1 .20
2,879,826.00
Si 56, 177,036.00
APPLY FOR INFORMATION TO
HON. DUNCAN MARSHALL,
JAMES McCAIG,
Minister of Agriculture
, EDMONTON,
ALTA.
Chief Publi
city Commissioner.
THE MONETARY TIMES
Volume 66
Port Hope Active
The Nicholson File Co. have had a busy year and employed
a large number of men. The Port Hope Sanitary Manufactur-
ing Co., Ltd., have also had a large output. The Mathews
Gravity Carrier Co., Ltd., and the Canadian Hauck Burner Co.,
Ltd., Canadian branches of American concerns, have both ex-
panded during the year. The Cobourg Felt Co., which was
established here in June, 1920, has made rapid progress at
this branch and is now employing over fifty hands. The Port
Hope Knitting Co. have had a busy year and moved into
larger premises. Another new industry, the Provincial Can-
ners, Ltd., established a factory here this summer and had a
good pack. The Cosmos Chemical Co. have been busy with an
increased output, and the Consolidated Chemical Co. have made
additions to their plant. The Ideal Clothing Co. and the Port
Hope Mat and Manufacturing Co. have been working to capa-
city, and the local plant of the Dominion Canners, Ltd., have
had one of the largest packs on record.
Owing to a rapidly expanding business the H. B. Mc-
Carthy Co., Ltd., are purchasing the Garnett mill property,
which will enable them to increase their output for the ensuing
year. Another new industry, the Port Hope Veneer and Lum-
ber Co., established their business in the Barrett mill prop-
erty.— A. H. C. Long, president. Board of Trade.
Niagara Falls
Niagara Falls, Canada, has enjoyed a year of prosperity.
All established industries have been producing to the limit of
their capacity. The Bates-Valve Bag Co. has erected a new
plant and will turn out bag-holders and ties. The Oneida Co.,
Ltd., makers of silver-plated goods, has under construction ex-
tensive additions to its plant, and when completed will manu-
facture many parts of its goods now being imported from the
parent plant at Oneida, N.Y., to be finished here. The Niag-
ara Wire Weaving Co., which built a commodious plant a
year ago for the manufacture of wire cloth, used largely in
paper mills, has much of its machinery completed and is now
turning out the finished product.
It is expected that the power situation will be greatly im-
proved, as the Hydro Commission is procuring some 2,500 h.p.
from other producing companies to tide over the period until
the Chippawa development scheme is operating next fall,
when there wll be an abundance of power for every emerg-
ency.— H. H. Bean, secretary, Niagara Falls Chamber of Com-
merce.
The Border Cities
In all, the border cities of Ontario, including Ford,
Walker\'i!le, Windsor, Sandwich and Ojibway, have now 206
operating industries. Considerably over .50 per cent, of these
are purely American. Most of the remainder are Canadian-
American. Forty-four of our 206 industries located with us
during 1919 — all of them American. During the year just
closed thirty-one others have come in, also all American.
At present, we are negotiating most encouragingly with
no fewer than seventy-six additional American concerns,
about one-third of which have definitely intimated their de-
cision to locate with us when conditions revert to the more
nearly normal. We ai-e also busy with eighty-six other
United States industrial prospects, most of which are shaping
so hopefully that they will soon be entitled to inclusion in
our "Live Prospect" class.
Fi-om the foregoing you will gather that we have little
to complain of. Rather, have we much cause for encourage-
ment— perhaps for congratulation. Indeed, it is safe to state
that within the past few years the general progress of these
border cities has been phenomenal in a sense beyond denial.
It is so astonishingly obvious on every hand, and will particu-
larly surprise those who may not have been here for a year
or two. As a matter of fact, the wholly exceptional rapidity
and nature of our growth has not yet been grasped by our
friends in centres further east. Perhaps this is because most
of it has its source in the United States. Ours has not been
merely development. It has been transformation. We have
literally leaped from the town category into the truly metro-
politan, doing so upon the most substantial of all foundations
— actual industrial expansion. — F. Maclure Sclanders, Indus-
trial Commissioner.
Sarnia's Record
The year 1920 has been an exceedingly prosperous one
for Sarnia. The industries are basic in character, i.e., oil
refining, salt, agricultural implements, stoves, lumber and
building materials. These have all had record seasons and
several new industrials have been added. The Holmes
Foundry Co., manufacturing motor castings, doubled their
plant this year and laid the foundation for another 50 per
cent, addition. The Perfection Stove Co. also largely in-
creased their payroll. Tho Mueller Manufacturing Co., manu-
facturing brass, water and gas goods, added new lines con-
nected with the motor trade.
New industries established during the year include the
National Engineering Co , capital $100,000, who are filling
a large contract for automobile tire pumps and who also
manufacture metal shop fixtures and the Neco Milk Con-
denser; the Sarnia Cement Products Co., cement building
supplies; John Hayne, manufacturer of cooperage stock and
finished barrels, at Point Edward. — J. M. Macadams, man-
ager. Chamber of Commerce
Woodstock Has Busy Year
During the past year a Canadian branch of the De
Long Hook and Eye Co. was established hei'e. Also the
Kennedy Car Liner and Bag Co. purchased the William
Stone Co. factory. The newly organized Karn Piano Co.
commenced operations in the Karn factory. A few days
ago arrangements were completed with the American Ironing
Machine Co., Chicago, to establish their Canadian branch
in Woodstock. They anticipate operating their plant here
about March 1st, and will make Woodstock their head office
for Canada. The heads of industries are quite optimistic
as to the future, and are looking forward to the factories
being busy as usual in a short time. — H. J. Sykes. secretary-
treasurer. Board of Trade.
St. Thomas Industries
During the year the Thos. A. Edison, Inc., purchased
the plant and buildings of the St. Thomas Cabinets, compris-
ing about one hundred thousand feet of floor space, and
this company, which will be known in Canada as the Cana-
dian Edison Phonographs Ltd., will begin operations about
the first of the year. It is their intention to build two addi-
tional wings to the building now occupied.
Hitch Bros, of Canada, manufacturers of wooden vehicle
toys and the Universal Wall-Paper Hanger, and the Pro-
vincial Machine and Supply Co., manufacturers of phono-
graph hardware, were incorporated early in the year, and
are now producing. The E. T. Wright Co., manufacturers
of "Just Wright" shoes, have disposed of their plant and
business to the Talbot Shoe Co., Ltd. The Canada Iron
Foundries have spent $150,000 in extending their plant this
year, and anticipate further extensions in 1921. — J. L. Lodge,
secretary. Board of Trade.
Sault Ste. Marie
During the past year practically all branches of in-
dustrial activity have been working at full capacity, notably
the plants of the Spanish River Pulp and Paper Mills Ltd.,
the Algoma Steel Corporation, Dominion Tar and Chemical
Co., and Standard Chemical Co. Wholesale and retail trade
has been exceptionally good and, in spite of the recent slump
in prices, there is not a single vacant store or warehouse
in the entire business section of the city.
Notwithstanding the high cost of labor and materials
there has been considerable building activity in industrial,
business and residential sections. The Algoma Steel Cor-
poration, whose investment in Sault Ste. Marie is at pre-
sent approximately $45,000,000, has begun work on a $7,-
000,000 addition which will be devoted to the manufacture
of structural steel. — Secretary, Board of Trade.
January 7, 1921
THE MONETARY TIMES
The Spanish River Pulp
and Paper Mills, Limited
HEAD OFFICE
SAULT STE. MARIE
Mills at
SAULT STE. MARIE, ESPANOLA, STURGEON FALLS,
ONTARIO
The Largest Manufacturers of Newsprint in Canada
Province of Nova Scotia
SOME FIGURES TO INTEREST BUSINESSMEN
VALFE OF I'RODUCTS, FOR THE YEAR HIIO
Coal
Coke and Hy- Products
Gold and Other Minerals
Gypsum. Limestone, ete.
Building Materials and (May Products
Iron and Steel Products
Fisheries . . . - -
Shipping and ^Manufactures
Products of the Farm
Products of the Forest
Game and Furs . . - -
$2iS,000,()()0
5,771,000
81().0()0
938,000
1.8SS.000
19,000,000
14^,850,000
5(».2(J0.()00
51.084,000
1{»,9()5.000
675,000
$192,197,300
The industrial ascendency of Nova Scotia is based upon its immense deposits of minerals, its great
forests, its rich farms and orchards, its fisheries, its waterpower and its strategic commercial situation as
the Atlantic "Gateway to Canada." The easy facility with which these rich natural resources can be
made the wealth producing servants of Brain, Capital and Labor has contributed to the phenomenal
creation and growth of industries throughout the Province.
The far-seeing promoters of that great Empire-wide Steel Corporation seem to have justified the
belief that Nova Scotia is destined to be one of the great work-shops of the Dominion.
250
THE MONETARY TIMES
Volume 6G
Western Provinces Are Growing Industrially
Expansion is Slow But Healthy— Promising Possibilities of Alberta Coal and Oil Fields— British
Columbia Ports Facilitate Greater Export Trade — Advantages of Pacific Coast Are Many
TNDUSTRIALLY the west is growing. While the expan-
-■• sion is slow it is healthy, and the indications are that
within the next few years some important and rapid develop-
ments will take place. In the prairie centres the best future
appears to rest in the more intensive agricultural development,
but at the same time a greater development of flour milling,
creamery products, live stock products and other manufactur-
ing based upon local raw materials is expected. The coal and
oil fields of southern Alberta and their relation to growing
industry also deserve consideration.
Winnipeg Growing Industrially
The year 1920 has been a satisfactory one for the city of
Winnipeg. Building has shown a remarkable increase as
compared with the past five years. New incorporations in the
province of Manitoba exceeded one hundred million dollars. In
some cases industries established are making use of the raw
materials available in the Winnipeg district.
New industries established include inanufacturers of farm
implements, automobile parts, confectionery, hats and caps,
trunks and valises, cereals, talking machines, paper boxes,
paper, batteries, paints and varnishes, brooms, cut glass, etc.
Winnipeg's municipal power plant has expanded considerably
during the year. The Winnipeg River Power Company are
now constructing a power plant on the Winnipeg River which
will cost in the neighborhood of ten million dollars, and will
furnish approximately 168,000 h.p. in addition to power now
being supplied to the city. The first unit of this plant is now
being built.
The production of hemp in the Winnipeg district was com-
menced during the year. A company was organized with the
assistance of the board of trade for the purpose of sowing 500
acres of hemp at Niverville, Man. — Secretary, Winnipeg Board
of Trade.
Regina's Progress
Despite adverse conditions created by the enhanced cost
of material and labor the city of Regina has experienced a
lai'ge amount of industrial progress. Commodious warehouses
have been erected by Wood-Vallance Co., Fairbanks-Morse Co.,
Goodyear Tire Co. and the Saskatchewan Co-operative Cream-
eries. The Leader publishing Co. have also added to their
holdings a large storehouse.
Other construction during the year embraces the new
Presbyterian Carmichael Church, built at a cost of $40,000;
power house at the Parliament Buildings, four-storey busi-
ness block of the Regina Trading Co., New Capitol Theatre,
and upwards of 200 residences. Projects for next year in-
clude a distributing house for Canadian Swift Co. and a col-
lege to be erected by the Lutheran body. — Chas. C. Cooke,
secretary-manager. Board of Trade.
Moose Jaw Outlook Good
Roman's Machine and Repair Works opened up a large
and well-equipped iron foundry and are doing a large volume
of business. The Mid-West Packing Co., Ltd., was organized,
acquired suitable premises which are being remodelled and
equipped for business, and it is expected that operations will
commence early in the New Year. The Mid-West Oil Co.,
Ltd., opened up a small refinery and lubricating grease com-
pounding plant and are doing an excellent business. The cap-
ital investment of some $50,000 has already abundantly justi-
fied itself.
Toner & MacBride, two experienced box and crate makers,
opened up a small factory in August but found orders so plen-
tiful that they were compelled to acquire very much larger
premises, install additional power machinery and increase their
staff after less than two months. The venture has proved
entirely successful and the future outlook is very bright. The
Walter W. Shaw Co., Ltd., manufacturing high-grade choco-
lates and confectionery, has installed a considerable amount of
new machinery, including a modern water-softening plant, a
large freezing plant and equipment that turns out the popular
"sucker" by the thousand. — Industrial Commissioner.
Building Good in Saskatoon
So far as the greater portion of the Saskatoon trading-
territory, which is very large, is concerned, the crop has been
better than for several years. The main consideration, how-
ever, was not the crop but the movement of the crop, and in
this regard farmers experienced considerable difficulty.
Building was exceptionally good, as evidenced by the fol-
lowing principal constructions: Coca Cola Co., $20,000; Frank-
lin Garage, $12,000; Chevrolet Garage, $15,000; Y. M. C. A.
hut, $20,000; Roy Garage, $15,000; Auto Garage, $20,000;
Barries' (Ltd.) store, $20,000; addition to C. P. R. station, $20,-
000; Riddel Carriage and Motor Works, $20,000; Green Court
apartment house, $20,000; Imperial Bank alterations, $15,000;
dry-cleaning establishment, $20,000; Quaker Oats Co., Ltd., ad-
ditions, $86,000; physics building at university, $403,000; May-
fair school, $184,000; C. N. R. roundhouse, $45,000; new skat-
ing rink, $25,000. — G. Graham, commissioner. Board of Trade.
1920 at Prince Albert
The Burns plant has trebled since last year, besides add-
ing a creamery and butter-making industry to their already
large plant, making the Prince Albert plant amongst their
largest. A new sash and door factory was started this year
and doing a big business, shipping their products to the sur-
rounding towns and districts, increasing their staff from
time to time and working overtime.
The new automobile body and top factory is also doing
well and are enlarging their quarters for the many orders
they have on hand, and promises to be made one of the best
industries in the city. The provincial Stock yards are still
adding to their already very large buildings and are acquiring
more land, which at present covers over 43 acres.
The city has spent some $65,000 on additional pumping
facilities and storage to the power plant and water system,
making our water and power system one of the best in the
province. — J. H. Mitchell, secretary. Board of Trade.
Commercial Development in Edmonton
Commercial development in Edmonton during the pres-
ent year has been very pronounced. In addition to a consid-
erable number of new firms which have been established in
the city, both manufacturing and distributing, many import-
ant additions have been made to plants and warehouses al-
ready established. One of these is the erection of a nine-
storey warehouse for Marshall Wells, Alberta, Ltd., this
building being the largest warehouse demoted to one line in
Western Canada outside of Winnipeg. It is expected that
the building will be ready for occupancy about December 1st.
It will be one of the most complete and best-equipped build-
ings of its kind in the country.
Work has also been started on an addition to the already
laige warehouse of Revillon Wholesale, Ltd. The plans for
this building will make it, when completed, the largest com-
mercial warehouse in the Dominion, with 11 acres of floor
space, a frontage of 350 ft. by 150 ft. in depth, nine stories
high. Another important development is the erection of a
new factory for the North West Biscuit Company at a cost
of $500,000. This company is already the second largest ex-
clusive biscuit factory in Canada and the new building will
have double the capacity of that at present occupied.
Perhaps the most important development in the commer-
cial life of Edmonton during the year has been the acquisition
by lease of the Edmonton, Dunvegan and British Columbia
January 7, 1921
THE MONETARY TIMES
257
MONTREAL'S
Exclusive Hotel
Delightfully located in the
residential section, away from
the noise and grime of the busi-
ness section, yet easily access-
ible to theatres, shops, etc.
Unsurpassed Cuisine and Service
FRANK S. QUICK,
General Manager
HIGH GRADE COATED BOOK PAPERS
SUEDE FINISH f'^l^^
Specially adapted for Financial
and Mercantile
Advertising
|-< ^^V^ MARK
REGISTEBED
Brought out and Perfected by
Ritchie & Ramsay Limited,
TORONTO
CANADA
We.lern Selling AgentB:
John Martin Paper Co. Ltd., Winnipeg and Calgary
DOMINION TEXTILE COMPANY
LIMITED
MANUFACTURERS OF
COTTON FABRICS
MONTREAL
TORONTO
WINNIPEG
THE MONETARY TIMES
Volume 66
Railway by the C. P. R. The inevitable result of this will be
a very greatly improved service to the Peace River and Grande
Prairie countries, followed by a great influx of settlers and
business men to that fertile region of which Edmonton is the
natural distributing centre. A great number of new settlers
have gone into the Peace River country this year and from
present prospects this number will be very materially in-
creased in 1921. — A. M. Frith, secretary. Board of Trade.
Calgary's Progress
Calgary during the past year has shown steady progress
in nearly all lines of activity. New wholesale and distributing
houses have been opened up in the city, and new industries
started. Notwithstanding the increased cost of materials
and labor, building permits show a healthy increase.
At the present time two large modern picture theatres
are under construction and will be completed during the next
few months. Five new schools have been built this year and
were recently opened, but the present accommodation is still
insufficient in some parts of the city.
Most of the leading coal mining companies in southern
Alberta have their head offices in Calgary and it is gratifying
to be able to report that the output of coal in this part of the
province, particularly in the Drumheller district, has been
greatly in excess of any previous year. This, of course, is
due to the new markets opened up and it is expected that in
future Alberta will supply a much larger percentage of the
coal consumed in Manitoba and Saskatchewan than in the
past. The live stock industry is now, as indeed it has always
been, an important factor in the business life of Calgary.
During the year the Alberta Stock Yards Co. have completed,
at a cost of $400,000, improvements and additions to yards
and built new offices. They have also secured an additional
60 acres of land in order to provide for future expansion. —
Secretary, Calgary Board of Trade.
Victoria's Industrial Development
Victoria, the capital city of British Columbia, stands in a
strategically important position in relation to the develop-
ment of Pacific Ocean trade. This fact is becommg more
widely recognized as commerce upon this greatest of oceans
increases, and as a natural sequence of events it cannot be
long before Victoria takes its place as one of the leading trade
centres on this coast. The peculiarly fortunate geographical
position is one of the chief arguments in its favor as a manu-
facturing centre for products for overseas markets. The city
stands at the inner entrance to the Straits of Juan de Fuca,
that water highway upon which travel to-day ships from every
port in the world, seeking the cities of Puget Sound and those
which lie along the British Columbia mainland coast and the
eastern coast of Vancouver Island. These vessels represent
large and ever-growing volumes of trade, which must assume
enormous dimensions within the next decade. Victoria is pre-
pared to handle that trade and is making preparation to cope
with it in proportion to its growth. Ocean docks, car-ferry
connections, dry docks, railway lines completed and building
form part of the raison d'etre of the city's ability to take care
of whatever may offer. — Victoria and Island Development
Association.
Vancouver Gaining Rapidly
Conditions in Vancouver indicate a continued growth in
population and in industries. In the last few months a num-
ber of new homes have been started and we have every indi-
cation that building will continue to a moderate degree
throughout all winter. Contractors expect that with more
moderate prices in building material of all kinds spring will
see much greater activity in providing housing for the ever-
increasing population.
Industrial Island, the reclaimed centre of False Creek,
in the very heart of the business district of Vancouver, has
sprung right into operation with industries so varied that they
are worth specifying: Ceramics, paint, glass, cement bricks,
steel and wire, boilers, engines, ship machinery outfittings, fish-
canning, pickle bottling, water-power wheels, ready-made
roofing, refining and manufacturing of talc products, sheet
metal, ventilating and blowing equipment, hide tanning, elec-
tric switch fuses and fixtures, saws, carbonic acid gas for
aerated waters. Besides these there are the older lumber in-
industries and manufactures on the north and south banks of
the creek, big shipyards, steel and metal works, that are not
of such recent erection. Harbor improvements comprise the
building of two new piers at a cost of .$6,000,000 each, and ad-
ditions to other docks; building of tugs and ferries for harbor
use, and continual dredging and keeping in repair.
Immigration to British Columbia continues good and of
the right character, for the major portion of those coming de-
sire to go on the land. Farmers from the prairies who are
selling out at good prices to American newcomers are moving
to the northwestern part of British Columbia. There have
been a good number who have come in mainly to get grazing
or mixed-farming lands. From the Old Country a number of
families have arrived to take up small holdings for fruit or
other farming. — J. R. Davison, publicity commissioner.
New Westminster
New industries established in New Westminster, B.C., dur-
ing 1920 were as follows: —
Acetate Products, Ltd., to manufacture wood alcohol, ace-
tate of lime, charcoal and pitch. Supplies of alder wood to be
used in this industry can be obtained in abundance from the
Fraser River valley.
Canada Western Cordage Co. was established to manufac-
ture rope, binder twine and similar products. Eight hands are
employed.
Cut-to-Fit Building Co. located in the city, supplying ma-
terial for construction of buildings. — A.' W. Gray, secretary,
Board of Trade.
Big Year for Brandon
The year 1920 has been a big one for Brandon, as far
as the industrial development of this city is concerned. The
Imperial Oil Company will erect a $3.50,000 plant here, sev-
eral large tanks and a warehouse covering over a city block
being- among the buildings to be erected. Possibly, one
of the largest deals was that of the sale of the Gordon-
Mackay building to the Massey-Harris Company, Ltd., for
a price said to be $130,000. The big machinery firm plans
to locate a large distributing plant here, and will take ad-
vantage of the many facilities this city offers as a shipping
centre for western Canada.
Vivian and Windle, a large wholesale grocery firm from
Regina, located here and opened up a big warehouse. Several
smaller houses also located in Brandon this year, while some
deals are pending at the present time which will bring at
least one more large machinery concei'n to this city. — H. L.
Crawford, secretary. Board of Trade.
Lethbridge Business Good
Coal mining has had a year of record prosperity. Strikes
have interfered with production but little, and the Lethbridge
and Crow's Nest Pass fields adjoining have produced in the
neighborhood of 2,.500,000 tons, valued at more than $12,500,-
000 at the mine mouth. There has been a steady demand for
coal throughout the year, while there has never been a car
shortage. Mercantile business throughout the year has been
good, and merchants are now busily engaged moving their
old stock, preparing to put their lower-priced spring goods
on the shelves. The old stock is moving rapidly at the re-
duced prices, showing that the buying public has been waiting
for the price adjustment.
Though last winter was a severe one on live stock, losses
through sacrificing breeding stock and through lack of fodder
being heavy, herds have come through the summer in fine
shape and there is an abundant crop of hay for this winter.
Rebuilding of herds, taking advantage of the low prices, has
started in a small way. Sheepmen of southern Alberta have
shipped two million pounds of wool this year at a prevailing
price of 38 cents average for the sixty per cent, of the clip
which has been sold. — Let^ibridge Board of Trade.
January 7, 1921
THE MONETARY TIMES
BRITISH COLUMBIA
CHEAP POWER
Canada's Pacific Coast cities, Van-
couver, Victoria and New Westmin-
ster offer manufacturers the advan-
tages of cheap power, ideal chmate,
good transportation, raw materials
and market.
133,700 Horse Power
is developed by the British Columbia
Electric Railway Co.
Population Served 300,000
Electric Railway, miles 367.5
Capital $43,305,469
Electric power for manufacturers available at
rates as low as
8/10 of a cent
per Kilowatt Hour
Gas supplied in cities of Vancouver and Victoria
at low rates for industrial purposes.
We invite inquiries as to our service and rates.
Write Sales Engineer.
British Columbia Electric
Railway Company
Vancouver Victoria New Westminster
North Vancouver Abbotsford Chilliwack
HEAD OFFICE - VANCOUVER, B.C.
FIDEUTY AND SURETY BONDS
(Ullp (Suarantpp (Enmpang
nf North Amprtra
Founded by
Edward Rawlings
in 1872
mantrral
This is a Company with a Dominion of Canada Charter.
The Share control and Home Office in Canada, and an Agency
Organization in Canada and the United States, and corres-
pondents in Great Britain.
Its premium rates are independent of any "Surety Com-
bination or Association," and all revenues received in Canada
and profits made in Canada are disbursed or invested in Canada.
The business of the Employer in Canada is solicited.
illir Maavb of ilrrrtara
Hl5
E. Rawi
Willi
UNOS. Esq.: President xnd .M.-inasing Director.
AM McMaster, Esq. : Vice-President.
Sir Vincent .Mkrfdith, Bart-
Hon. E. C. Smith, .St. Albans
James B. Foroan. Esq.. Chicago
r. Db Witt Cuvler, Esq.. Phila.
Sir H. .Montaci
Frank Scorr. Esq., Montreal
Philip Stockton, Esq., Boston
John Macdonald. Esq., Toronto
Sir Augustus Nanton, Winnipeg
Allan, Montreal
W. S. Ch
This is our record-
Do you Know^ a better one ?
In 40 years' operation, all surplus earnings
have gone, not to shareholders, but back into
our business lo buy more plant and so to earn more
revenue.
Not a drop of water in our stock ! Money spent
on telephone plant exceeds stock and bond liability
by over 16 millions.
Each share of stock sold from the beginning
has averaged $106.00 per hundred dollar share.
Dividends to shareholders have averaged less
than 8 per cent, and have never exceeded 8.
And our subscribers have got more for the
money they have paid us in telephone rates than
those of any other system we know of anywhere.
Our problem is the problem of utilities every-
where. Regulation fixes the price we must charge
for our service ; it does not limit the price we must
pay for wages or supplies.
Fair minded people concede that adequate rates
and edequate service mu.st go hand in hand.
The Bell Telephone Co. of Canada
260
THE MONETARY TIMES
Volume 66
Industrial Development in Maritime Provinces
Nineteen-Twenty Was Not a Very Eventful Year — Progress Was Healthy — Readjustment
Slackened Operations Toward the End of the Year — Winter Outlook for Coast Parts is Cheerful
INDUSTRIALLY, 1920 was not a very eventful year for
the maritime provinces. There was healthy pi-ogress, but
the developments were not large. The business readjustment,
which has hit practically the whole world rather forcibly,
made itself felt towards the end of the year, but the outlook
for the winter is cheerful, particularly for those cities which
are situated on the Atlantic coast, and which receive Can-
ada's winter shipping-.
Prince Edward Island, which is largely dependent upon
its natural resources rather than its manufacturing, had a
successful year. Fox farming, the principal industry of the
province, made satisfactory progress, while the general farm-
ing conditions were good.
Steel Industry at Sydney
As far as industrial developments were concerned,
Sydney, N.S., had a quiet year. The Dominion Steel Cor-
poration, the city's principal industry, extended its opera-
tions largely, but outside of this nothing eventful occurred.
In February, 1920, the new 110-inch plate rolling mill was
placed in operation. This new department involved the ex-
penditure of approximately $5,000,000, and has a capacity
of approximately 12,000 gross tons monthly sheared plates
up to 96 inches in width. Since the beginning of operations
it has been shipping its entire production to the Canadian
government, with which the company has a contract for from
50,000 to 75,000 tons of plates per year for five years.
In the early part of the year the first two units were
placed in operation in the company's new power-house, which
has been erected at $1,250,000, and which, when completed
early this year, will have a maximum capacity of approxi-
mately 10,000 k.w. This additional power will permit the
electrification of some of the producing departments that
have heretofore been using steam, and will enable the com-
pany to produce its electric power requirements at the lowest
possible cost per k.w.h. — Secretary, Board of Trade.
Halifax, N.S.
It could not be expected that the great prospei-ity of
the war period could continue indefinitely, but I must say
I do not think any of us anticipated such a sharp curtailment
in practically all lines of industry and trade as has occurred
in the past three months. The bursting of the sugar bubble
of itself has had far-reaching results, and has particularly
affected Halifax and Nova Scotia by further depi-essing the
export trade in lumber, fish, potatoes, etc., in addition to
which there is the bad effect on sail tonnage, in which a large
amount of Nova Scotia capital is tied up.
The retail trade, notwithstanding price reductions, finds
the general public shy in buying. There appears to be abroad
a mixture of extravagance and economy, which I might
instance by the fact that, while most of the young men and
most of their fathers are eagerly buying $10 to $25 hats,
plus luxury taxes, most of their fathers and some few of the
sons are economizing by clinging to their old shoes, having
their old suits turned, etc. Up to the present, no economy
is noticeable in the use of motor cars or articles of food.
However, I have not recited the above through pleasure of
telling any tales of woe, but rather to take this opportunity
to state that trade conditions with us compare favorably with
those of our neighbors t6 the south. Canada, and Nova Scotia
in particular, with its tremendous natural resources, can
.stand reverses better than any other nation in the world;
therefore, let us meet the changing conditions with courage
and a resolve to carry on to the best of our ability, with
assurance of winning out. In the great war Canadians earned
an enviable reputation and world-wide fame for these same
qualities, and I venture to predict that Canada will come
through this great reconstruction period as well, if not
better, than any country on earth. I will close this part of
my remarks by saying that, from a commercial standpoint,
the need of the hour is the careful expenditure by the
country as a whole and by the individual for necessities, with
the cutting out the useless waste and indulgence in luxuries,
which latter had characterized the past six years, and is still
the prevailing and fashionable custom. — President, Board of
Trade, in his last quarterly report.
Charlottetown, P.E.I.
The only new industry to be established here during the
past year was a flour mill with a capacity of 150 barrels per
day. This mill, while not a large one, is equipped with the
latest machinery, and electrical power is used throughout.
This mill is owned and operated by the Charlottetown Milling
Co., Ltd.
Bruce Stewart and Co., Ltd., machinists and boiler-
makers, have erected a large machine shop to accommodate
their ever-increasing trade, especially in imperial marine
motors, which are now being shipped all over the world. —
Wallace L. Higgins, secretary. Board of Trade.
Canada's First Winter Port
The Clark Company, of Bear River, N.S., have acquired
properties at Glen Falls, adjacent to Courtenay Bay, and
propose establishing an industry for the manufacture of fibre
cases. They have also in view a pulp and paper plant in the
same locality.
The Nashwaak Pulp and Paper Company, whose mill is
on the west bank of the St. John Rivei-, alongside the re-
versing falls, have made some additions and improvements
to their plant the past season, and have arranged with the
city for an increased water supply in order to increase their
production. The Atlantic Sugar Refineries, Ltd., whose plant,
up until a few weeks ago, was one of the busiest in Canada,
is now resting, pending an adjustment of the sugar situa-
tion. During the past year additions and improvements,
involving an expenditure of approximately a quarter million
of dollars, have been made to the Atlantic plant.
The machine plants of the city have not been working
to capacity, due in a measure to labor demands, which were
made some time ago, but which the employers felt they could
not grant. Lime manufacturers have been quite busy of late.
The plant of the Provincial Lime Company at Brookville,
which was burned a short time ago, has been rebuilt and is
now in full operation. The provincial government has estab-
lished a lime plant in the same vicinity to provide lime for
agricultural purposes. The condition of the overseas market
has had a disturbing effect upon the lumber industry and
has tended greatly to limit production. It is doubtful if the
lumber cut this winter will attain its usual proportions.
The Portland Rolling Mills plant, which has been oper-
ated under the control of the Bank of Nova Scotia for some
years past, has been purchased by a new company, who have
changed its name to the New Brunswick Rolling Mills. This
firm is now manufacturing a number of lines of metal pro-
ducts. There have been some changes in the spice mills of
the city within the last ftiv months.
The shipping interests of the port are looking forward
to a good winter's work. In anticipation of increased immi-
gration another story has been added to the immigration
building on the western side of the harbor. To facilitate the
movement of grain, another grain conveyor has been added
to the west side terminal equipment. There are now seven
steamship berths on the west side with grain conveyors
attached. These are connected with the C.P.R. elevator. On
the east side of the main harbor the C.N.R. has two grain
berths. They hope shortly to add four more. — R. E. Arm-
strong, secretary. Board of Trade.
January 7, 1921 THE MONETARY TIMES
T
PROVINCE
OF QUEBEC
HE province of Quebec occupies a leading place in
the pulp and paper industry, and for its produc-
tion of asbestos.
its forests cover over 1 30,000,000 acres, and are well g
stocked w^ith game. its lakes and rivers contain great g
varieties of fish. ^
Water power available 10,000,000 horse-power. M
Water power developed 900,000 horse-power. M
In the industrial as well as the agricultural field the pro- g
vince has a steady and sound expansion. The stability g
of its labouring class is an example to all. g
The following are some recent statistics on the economic J
development of the province : — ^
Annual value of industrial products - $900,453,967 M
Annual value of agricultural products 307,994,000 g
Annual value of dairy products - 31,000,000 g
Annual value of forest products - 40,761,730 M
Annual value of paper products - 34,167,937 M
Annual value of mineral products - 20,701,005 M
Annual value of fisheries - - - 3,414,378 g
Annual value of maple products - 6,396,535 g
Annual value of tobacco production - 7,200,000 g
Population of the Province - - 2,500,000 1
Population of Montreal - - - 800,000 g
Population of Quebec - - - 125,000 g
Debt per capita .... - $16.73 g
IlilllillllllllllllllJIIIIIIIIIIIIIIIIIIIIIIIIIIIi^
THE MONETARY TIMES
Volume 6G
Quebec Province as Manufacturing Centre
Montreal Harbour the Greatest Asset— Hydraulic Resources Contribute Largely
to the Upbuilding of Industry— Quebec and Sherbrooke Live Business Centres
1"'HE province of Quebec, one of Canada's premier manu-
■■- facturing provinces, has just completed a year which
has been more or less eventful. In industry, the latter part
of the year was marked by a slowing up, as was general all
over the continent, but the beginning oi' 1920, and up to the
late summer, was very prosperous. Nature has been very
generous to the province in the way of hydraulic resources,
and it is to this that Quebec owes a great part of its growth.
It is estimated that the province has nearly 7,000,000 h.p.
scattered over the different parts of its territory, but up to
the present only a small part of this has been developed.
Perhaps the greatest asset of the province is the port of
Montreal. To list the developments in the city during the
year, would be impracticable here, as they are naturally
numerous in a community so situated and with such facilities.
The growth of the city, however, can be readily gleaned from
the tables of bank clearings and building permits given else-
where in this issue.
Montreal's Great Harbor
While Montreal is such a great city, very few people,
outside of its residents, have any idea of the extent of its
facilities. Perhaps the most credit for the growth of the
port, is due to the Board of Harbor Commissioners, which
body is devoted to the upbuild of the industrial part of the
city. The harbor, of course, is Montreal's one great asset,
and it is to this that the city owes its position in the com-
mercial world.
The harbor extends for a distance of 17 miles on both
sides of the St. Lawrence River, has in its central part 100
steamship berths, from 350 to 750 ft. in length, one-third of
which are at concrete wharves, has modern grain elevators
with conveyor system to 15 steamship berths, from which
nine vessels can be loaded at one time. There are 23 per-
manent fireproof transit sheds, and 58 miles of railway track-
age along the river front, enabling quick despatch of freight
both inward and outward. The grain handling facilities of
the port are excellent. Three elevators, constructed by the
board, have a storage capacity of approximately 9,000,000
bushels, and from these eleven vessels may simultaneously
i-eceive grain at the i-ate of 15,000 bushels per hour.
Warehouses for Storage
The Harbor Board prepares for the future, and constantly
endeavors to secure new traffic as well as to provide better
accommodation for that now contributory to the port. A
huge warehouse, with cold storage facilities, is under con-
struction, to be operated in the same way as the main ele-
vators, that is, at bare cost. This warehouse is planned on
an extensive scale. It will be a receptacle for imports
awaiting distribution, for exports awaiting ships, and for
perishable products, both inward and outward, which require
a period of cold storage for one or another reason to pre-
serve their condition. This warehouse will be available for
u^e the year round, during the closed as well as the open
season of navigation, and will be of special advantage in the
periods immediately succeeding and preceding the open
season. The electrification of the harbor railway system is
in contemplation, and will be shortly begun. During the
war new construction was necessarily slowly proceeded with;
and, as a consequence, it is intended to proceed with greater
expedition in completion of the plans the Harbor Board has
now in hand.
Sherbrooke Breaks Records
Sherbrooke has broken all previous records as well as
leading the province in industrial expansion and new construc-
tion for 1920. Permits for buildings for the first nine months
a modern gas plant; .Tulius Kayser & Co.'s new factory, at a
of this year aggregate $3,318,178. The new constructions are
cost exceeding $1,000,000; Canadian Connecticut Cotton Mills'
extension will exceed $2,000,000; Canadian Sturdy Chain Co.,
Sherbrooke Machinei-y Co.'s extensions. The other new indus-
tries are: Superheater Co., Ltd., the Regal Tire and Rubber
Co., Ltd., Cluett, Peabody & Co., English and Scotch Woollen
Co., Pressure-Proof Rings Co., Ltd., J. H. Bryant, Ltd., and
fifteen new commercial buildings, including three new bank
buildings. A technical school will be built at the cost of sev-
eral hundred thousand dollars. Municipal hydro-electric power
development at Two Miles Falls, at an expenditure of over
$500,000, will provide 5,000 additional horse-power for new In-
dustries. Sherbrooke has over 60 industries and its manufac-
tured products total over $50,000,000 per year. There are
ample housing facilities to accommodate all the labor required
to work all the plants now standing. In addition the city is
now spending over $600,000 on a model city suburb of working
men's dwellings, and the programme calls for 200 houses of
modern design. The labor situation was never better. All
kinds of labor is available, including male and female, both
skilled and semi-skilled; the working man is happy and con-
tented in this section of the country; no foreigners or bolshev-
ists in this locality. Our labor population understands that
capital is absolutely necessary, and capital knows that labor
is equally needed, consequently with this reasoning strikes are
foreign to our people.
Sherbrooke possesses all the accessories for successful
manufacturing, with special inducements offered to new indus-
tries by the civic authorities, such as exemption of taxes for a
period of ten years, public improvements which may be re-
quired such as extension of streets, sidewalks, waterworks and
sewerage, etc.; hydro-electric power at % of a cent per k.w.h.
— J. H. Brosseau, secretary-treasurer, Board of Trade.
Quebec Industrial Survey
During the year 1920, although the prices prevailing on
construction material and labor were rather high, important
additions and alterations to some of the factories were exe-
cuted. Some twenty-five permits were given at the city hall,
representing an expenditure of over $750,000, the principal be-
ing the Champlain Brewery Co., Ltd., Quebec Preserving Co.,
Ltd., preserves and canned goods; Parisian Corset Co., Ltd.,
Lagace & Lepinay, shoe manufacturers; J. H. Gosselin, shoe
manufacturer; Gale Bros.. Ltd., shoe manufacturers.
La Cie. Jos. Lefrancois, Ltd., saw ajid planing mill, which
was burned out last June, has been reconstructed on a larger
scale and the building will be practically fireproof. Some very
important garages have been erected during the year, four of
them being fireproof construction, the outlay representing
about $250,000.
The power situation in and around the city of Quebec is
very good. At the present time the two companies supplying
power to the city are advertising some 25,000 h.p. available for
immediate delivery. Further developments could be completed
at short notice. The city of Quebec has, in virtue of its char-
ter, power to exempt from taxation for a period not exceeding
ten years any new industrial company duly organized making-
application to the finance committee to obtain the privilege.
It has been decided at a meeting of the above committee held
last June to grant the privilege in the future subject to the
following conditions : The exemption will be for the real estate
tax only. The value of the plant erected will be established by
the city tax assessors when completed and the company will
pay tax only on 10 per cent, of the value for the first year, 20
per cent, the second year, up to the full amount the tenth year.
No bonuses of any kind are considered. — Secretary, Board
of Trade.
«-/y.
I'l ll.liHKO KvtRv Fkidav
The Monetary Times
Priivting Company
of Canada, Limited
"The Canadian Engineer"
Trade Review and Insurance Chronicle
of (TanaDa
Established 186'
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
■W'. A. McKAGUE
Editor
More Than Seven Millions of New Banking Capital
This Increase During the Past Year is Supplemented by Addition of
Over $5,000,000 to Reserves — No More Authorizations in 1920—
Comparison of Bank Capital and Reserves for Past Few Years
SUBSTANTIAL additions to the amount of capital employed
in the banking business were made during the past year
both by new stock subscriptions and by appropriations from
profits to reserve. During the year ended October the addi-
tions were $9,594,125 to paid-up capital and $6,935,769
to reserve. There was no change in the authorized capital
of the banks, the new subscriptions following upon authoriza-
tions already granted. Additions to subscribed and paid-up
capital and reserve during the twelve months under review, by
bank.s, total as follows: —
Capital
Capital
subscribed.
paid up.
Reserve.
. . $2,000,000
$2,000,000
$2,000,000
Nationale
100,000
Merchants
1.799,100
1,614,435
1,400,000
Provinciale
1,000,000
939,719
100,000
Union
1,:502.100
1,365.040
1,018,744
Royal
;i, 082, 400
2,711,040
1.405,520
Hamilton
965,200
903.010
651. .505
Hochelaga
100.000
Home
11,417
100.000
3,565
50.000
Weybum Security
45,899
10,000
Totals
$10,148,800 $9,.594,125
1,935,769
Substantial though those amounts appear, it is the opinion
in some quarters that thoy should have been larger. It is con-
tended that the great expansion in banking business during
the past few years has not been accompanied by a correspond-
ing increase in capital funds. In August, 1914, the paid-up
capital and surplus of the Canadian banks totalled $226,000,-
000, and the deposits were $1,094,000,000. the ratio of the for-
mer to the latter being 20.8 per cent. In October last the
combined capital and surplus was $257,682,757, and the de-
posits $2,298,882,765, a ratio of only 11.2 per cent.
.Vuthorized Capital
A review of the capital growth during the past few years
is interesting. During 1917 there was only one increase in
authorized capital, when in March of that year the Banqr.e
d'Hocholaga had its authorization increased from $4,000,000 to
$10,000,000. The Quebec Bank was taken over by the Royal;
its authorized capital was $5,00l).000. During 1918 there were
no increases in authorized capital, and through the dropping
out of the Bank of British North America and of the Northern
Crown Bank the total authorized capital of Canadian banks
decreased from $189,866,666 to $179,000,000.
During 1919 the following increases were authorized: —
February, Bank of Montreal, $25,000,000 to $28,075,000;
March, Union Bank. $8,000,000 to $15,000,000; May, Bank of
Nova Scotia, $10,000,000 to $15,000,000; July, Merchants Bank,
$10,000,000 to $15,000,000; October, Provinciale, $2,000,000 to
$5,000,000. This is a total of $23,075,000, but in May the
Bank of Ottawa was absorbed by the Bank of Nova Scotia,
and after its authorization of $5,000,000 is deducted the net in-
crease is $18,075,000.
Subscribed Capital
In 1917 the Royal Bank increased its subscribed capital by
$911,700; that of the Standard was increased by $40,800, and
that of the Weyburn Security by $10,000. The elimination of
the Quebec Bank with a sub.scribed capital of $2,735,000 re-
duced the total from $113,863,966 at the end of 1916 to $112,-
091,466 at the end of 1917.
During 1918 the following additional stock was sub-
scribed: Standard, $26,900; Weyburn, $6,000; Montreal, $2.-
903,800; Royal, $1,088,.300; and the Bank of British North
America and the Northern Crown Bank, with subscribed capi-
tal of 54,866,666 and $1,431,200 respectively, dropped out, mak-
ing a net decrease of $2,272,866.
Larger amounts still were subscribed in 1919, no less than
eight out of the 18 now existing banks opening their books for
further subscriptions. The total subscribed (par value) up to
the end of October was $12,312,700. The amalgamation of the
Bank of Ottawa with the Bank of Nova Scotia on May 1st
effected a reduction of $4,000,000, so the net increase during
the first ten months of the year was $8,312,700. The addi-
tions for the 10 months were as follows: Montreal, $1,096,200;
Nova Scotia, $3,200,000; Merchants, $1,400,000; Provinciale,
$1,000,000; Union, $1,697,900; Royal, $2,911,100; Hamilton, $1,-
000,000; Wevbum, $7,500.
Growth of the authorized and subscribed capital month by
month for the past Uvo years is shown in the following table:
Capital
jgj^g Authorized "
January $179,000,000
February ^^2,075,000
March _: 189.075.000
April
194,075,000
Mav "'" 189,075,000
June -^ 189,075,000
TiTv — - 194,075,000
Augustv::::::::::::::::"- — 194,075.000
September ''t'll'Z
October 197,075,000
November 197,075,000
December 197,075,000
J920
Tanuarv $197,075,000
February":::::::::::: 197,075,000
March 197,075,000
April '--- 197,075,000
April 197,075,000
June I 197,075,000
TnU - 197.075,000
August '-III 197,075,000
Septembe'r"::::: ^Vrr'^^ll'Tn
October 197,075,000
Capital
Subscribed
$110,492,200
111,335,200
112,401,700
114,927,400
115,784,700
116,360,000
116,599,100
116,665,200
117,602,800
118,131,300
119,522,300
119,522,.300
$119,522,300
119,522,300
119,522,300
119,522,300
121,522,300
122,855,100
127,302,800
127,901,400
128,183,500
128,280,100
THE MONETARY TIMES
Volume 6G.
Capital and Reserve
During 1917 the dropping out of the Quebec Bank with a
paid-up capital of $2,735,000 was offset by new amounts of
stock paid up in the other banks as follows: Royal, $911,700;
Standard, $107,350; Home, $724; Northern Crown, $275; Ster-
ling, $4,776; Weyburn Security, $37,610. These total $1,062,-
435, the amount for all Canadian banks showing a reduction
from $113,346,341 to $111,673,776.
A further reduction in the paid-up capital of Canadian
banks is found in 1918, owing to the fact that the Bank of
British North America, with a paid-up capital of $4,866,600,
and the Northern Crown, in which case the amount was $1,-
429,447. were absorbed. Stock in the other banks was paid
up with a par value as follows: Montreal, $2,903,800; Royal,
$1,088,300; Standard, $82,200; Home, $272; Sterling, $4,112;
Weyburn Security, $26,010; total of $4,114,734, leaving a net
reduction of $2,181,379.
A total of $12,182,905 was paid up ir 1919, up to the end
of October, and after deducting $4,000,000, the paid-up capital
of the Bank of Ottawa, an increase of $8,182,905 is found.
Additions during the ten months w-ere: Montreal, $1,096,200;
Nova Scotia, $3,200,000; Merchants, $1,341,535; Provinciale,
$986,660; Union, $1,634,960; Royal, $2,875,850; Hamilton,
$983,760; Home, $234; Sterling, $6,375; Weyburn, $57,331.
Coming to rest or reserve fund, we find in 1917 a net in-
crease of $717,350. The additions made were as follows:
Banque Nationale, $100,000; Banque Provinciale, $50,000;
Royal Bank, $1,440,000; Standard Bank, $107,350; Weyburn
Security, $20,000. These total $1,717,350. The reserve of the
Quebec Bank was $1,000,000.
During 1918 the following additions were made: Mont-
real, $2,540,825; Nationale, $100,000; Provinciale, $50,000
Union, $200,000; Commerce, $1,500,000; Royal, $1,000,000
Standard, $82,240; Hochelaga, $100,000; Sterling, $50,000
Weyburn Security, $25,000; total, $5,648,065. The reserve of
the Bank of British North America was $3,017,333, and that
of the Northern Crown was $715,600. These reduced the in-
crease to a net of $1,915,132.
Still larger additions were made during 1919, the total up
to the end of October being $12,261,736. The reserve of the
Bank of Ottawa was $5,000,000, so that the net increase for
the ten months was $7,261,736. The additions were as fol-
lows: Montreal, $1,459,175; Nova Scotia, $6,000,000; Na-
tionale, $100,000; Provinciale, $200,000; Union, $981,256;
Royal, $1,887,925; Hamilton, $693,380; Ottawa, $250,000; Im-
perial, $500,000; Home, $100,000; Sterling, $50,000; Weyburn,
$40,000.
Monthly increases in paid-up capital and reserve since
January, 1919, can be gleaned from the following figures: — •
Capital Rest or
1919 — paid up reserve fund
January $109,622,070 $116,129,225
February 110,643,539 116,870,214
March 111,722,628 117,433,322
April 113,766,272 119,799,736
May 114,238,015 121,126,066
June 115,423,327 122,124,261
July 115,721,629 122,230,372
August 115,834,923 122,273,225
September 117,050,239 123,041,750
October 117,675,302 123,477,561
November 119,162,137 124,710,890
December 119,199,441 124,712,670
1920 —
January $119,226,365 $124,724,985
February 119,241,918 124,925.000
March 119,252,969 124,925,000
April 119,266,664 126,475,000
May 121,266,885 128,575,000
June 122.400,044 128,675,000
July 1 126,051,138 130,027,965
August 126,522,615 130,182,660
September 126,927,040 130,325,640
October 127,269,427 130,413,330
Total
$225,851,295
227,513,753
229,155.950
233,566,008
235,364,081
237,547,588
237,952,001
238,108,148
240,091,989
241,152,863
243,873,027
243,912.111
$243
244,
244
245
249
251
256
256
257
257
.951,350
166,918
,177,969
,741,664
,841,885
,075,044
,079,103
,705,275
,252,680
,682,757
STRATFORD LIFE UNDERWRITERS' ASSOCIATION
The annual meeting of the Sti-atford, Ont., branch of
the Life Underwriters' Association was held December 10,
with President Joliffe in the chair. Officers elected were as
follows: President, S. C. Cooper, Northern; first vice, W. N.
Harrison, of St. Mary's; second vice, H. R. Long, of God-
erich, Sun Life; third vice, N. F. Kastner, Metroplitan; sec-
retary-treasurer, L. E. Doherty, Sun Life, Stratford. Execu-
tive—H. B. McClellan, ^tna Life; M. J. Bailey, Prudential.
FIDELITY AGENCY STARTS BOND DEPARTMENT
Announcement is made by Stanley Moss, president and
managing director of the Fidelity Agency Corporation,
Limited, that they will enter the bond market more actively
in future. Heretofore the business of this fii'm has been
confined almost exclusively to fidelity, fire and casualty
insurance. Frank G. Lawson has been taken into partner-
ship and will have the management of the new bond depart-
ment. Mr. Lawson has been identified with Messrs. W. L,
McKinnon and Co. since his return from overseas two years
ago, and became known to the bond dealers' fraternity
through his position as assistant secretary to the Ontario
executive committee in the last Victory Loan campaign.
CONTINUED CONTRACTION IN PAYROLLS
Dominion headquarters of the Employment Service of
Canada, Department of Labor, reports that there was
another substantial decline in employment during the week
ended December IS, 1920, when it was reported by 4,753
firms that they had released 12,411 persons from employment
since the end of the preceding week, a shrinkage in payroll
of nearly two per cent. Firms in all industrial groups
participated in these contractions with the exception of re-
tail trade, which showed a net increase of 932 persons. The
figures used in this report do not include loss of time due
to strikes or lock-outs.
Increased employment as compared with the returns for
the preceding week was reported in New Brunswick only,
while of the reductions registered in the remaining districts
that of 5,142 persons or nearly two per cent, in Ontario was
the most decided. As compared with the returns for January
17, 1920, there were increases in the Maritime Provinces,
Manitoba, and Alberta with large decreases in the other dis-
tricts. For the following week firms in Nova Scotia antici-
pated having some recovery, but further losses were expected
elsewhere.
The most noteworthy contractions in payroll were regis-
tered in the crude, rolled and forged, railway car and ship-
building- and sheet metal products divisions of the iron and
steel industry, in the thread, yarn and cloth, garments and
hosiery and knit goods branches of textiles, and in the sea-
sonal industries, sawmills, building and railwry construc-
tion. There was also less activity in abattoirs, furniture,
brick, confectionery and biscuit, pulp and paper, musical in-
strument and chemical factories, in the mining group, rail-
way and water transporation and logging. In the last named
the decreases were occasioned by men leaving lumber camps
for the holidays. While these shinkages in payrolls were
general in application those in Ontario and Quebec were in
many cases largest. For the following week further sub-
stantial losses were anticipated.
There were 722 new companies incorporated in British
Columbia during 1920. In 1919 there were 616, and in 1918
the incorporations numbered 347. Sixty-six extra-provincial
companies were admitted to business last year.
Janui/ry 14, 1'Jj.l
H t: .MONETARY T 1 il E S
Loan and Trust Assets to be Fully Examined
Forms Prepared by Donunion Superintendent Require Statement in Great Detail — Returns
Due March 1— Full Information Required Concerning Mortgages- Loans on Stocks and Bonds
(Special to The Monetary Times.)
Ottawa, January 12, 1921.
FORMS on which annual statements of loan companies
in Canada, as required under the provisions of the
Loan Comp&nies Act of 1914 as amended at the last session
of parliament, have now all been sent to Canadian loan
companies. They will have to be filled and returned by
March 1. Forms for the trust companies have also been
received from the printer, and will go out in due course to
all Canadian trust companies &s well. The fomi is not ex-
pected to differ radically in extent and form from that sent
out to the loan companies.
The form is really a pamphlet in size, with a strong
brown cover, and thirty-two pages inside. Twelve pages
are devoted to questions concerning the companies, their
history, financial resources, revenue, liabilities, etc., and. the
remainder of the form contains eleven schedules made out
in such a way as to permit of companies filling in all details
concerning the company's business. On the first page the
loan company states its name, the Act aiid date under which
organized or incorporated, the dates of amendments to its
charter, and the date of commencing business. On this page
also must appear the names of the president, vice-presidents,
manager and secretary, as well as the address of the head
office and the names of the directors. On the last half of
the page appears the amount of capital authorized, the
amount subscribed of preferred and ordinary shares, the
amount paid in cash on preferred and ordinary stock, the
latter being divided into the stock fully called, part called
and instalment stock. The list of stockholders must be
given on a separate schedule.
Valuation of Assets
The next series of questions relate to the assets. First,
the book value of re&l estate, less encumbrances, held by the
corporation must be given. Separate lines are given for
the book value of the office premises, the freehold land in-
cluding buildings and the leasehold land including buildings.
In a long schedule at the back provision is made for listing
each individual property held by the corporation, with details
as to dates when inquired, amount of encumbrances, actual
cost as well as book and market values, the amounts expended
for repairs and improvements on capital account, the gross
income, taxes and all running expenses and the net income.
Information is asked as to rents due and a-ccrued, and as to
amounts secured by first, second and subsequent mortgages,
and agreements for sale as w^U as interest due and accrued.
The schedules asked for on mortgages are the most
elaborate, and pr^^'Ctically mean that the superintendent of
insurance will have in his office details of the history and
financing of every mortgage carried on the loan companies'
books. This schedule is divided into four sep&rate sections.
The first asks a summary of mortgage loans classified as to
province. The second one deals with loans secured by mort-
gages on land, and will require each corporation to analyse
its mortgages on land in order to show the total principal
and the total amounts of interest due and unp&id under six
months and over six months with regard to five classes of
mortgages.
"First mortgages under which no legal proceedings
have been taken," comes first in the list. Then come second
or subsequent mortgages (where pi'ior mortgages are not
entirely owned by the company) under which no legal pro-
ceedings have been taken. Then must be given the total
sums asked for for all mortgages under which legal pi'o-
ceedings have been taken and are still unsettled (including
loans where the mortgagee is in possession). The fourth
total asked for is the amount secured by agreements for
sale or purchase of property not subject to prior moitgC'ge,
and the aggregate amount of the sale price of such proper-
ties, and the fifth asks for the same information when the
agreements for sale or purchase of property are subject to
prior mortgage or other charges. It also asks th?jt the
amount of such prior mortgages or charges shall be given.
The third section of this schedule covers mortgage loans or
agreements for sale or purchase of property which involve
2 per cent, or more of the combined paid-up capital and sur-
plus of the corpoi-ation, and in a-ny event in excess of fifty
thousand dollars. Two or more mortgages secured upon
the same property have to be included in this list if their
combined totals bring them into this list. A separate list
is also required of all mortgages on which interest is over-
due more than six months or charges more than one year.
Similarly, a schedule asks all details concerning the
amount of loans secured by stocks, bonds and other collateral.
Bonds and debentures owned by the corporation have a
special schedule to themselves as also do stocks owned by
each corporation. Details of cash in banks, lo&n companies
or elsewhere are also required, and all amounts of money,
borrowed with or without security from chartered banks
or other sources have to be shown. Special attention is
given in a separate schedule to details of loans made to
directors, the names of the latter and the securities offered.
The last printed page is an affidavit form. Liabilities to the
public and to the shareholders are the subject of a special
list of questions. Analysis of income a^nd expenditure must
be given in detail in answer to many questions set forth,
and there are as well twelve long questions to cover any
information not included under other headings or schedules.
REGINA LIFE UNDERWRITERS' ASSOCIATION
A successful year was reported by J. H. Taylor, retiring
president of the Regina branch of the Life Underwriters'
Association, which held its annual meeting December 11.
L. E. Yingst, of the Sovereign Life Insurance Co., was
elected president of the association for the coming year.
Other oflficers elected were: Vice-president, M. B. Farr, Mon-
arch; secretai-y-treasurer, K. P. Dunstan, Imperial. Execu-
tive committee — C. H. Hughes, Prudential; C. F. Dumfee,
Great West; W. Craise, Excelsior; C. Woodley, Metropolitan,
and G. A. Robinson, Mutual of Canada. Mr. Taylor an-
nounced that the first general meeting of the Provincial
Association will be held in Saskatoon in March. The secre-
tary-treasurer's report showed finances to be in a good con-
dition and membership on a firm basis.
ijiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim
Index for Volume 65
Ready
The Monetary Times index for the
half-year ending December 31st,
1920, IS now ready for distribution.
Subscribers desiring this index will
be furnished a copy upon request.
THE MONETARY TIMES
Volume 66.
SIGNS OF BUSINESS IMPROVEMENT IN WEST
CANADA LIFE MAKES BIG STRIDE IN 19-0
Secretary of Winnipeg Board of Trade Shows Grounds for
Optimism — Provincial Bank Deposits Grow and
Security Values Rise
(Staff Correspondence)
Winnipeg, Januai-y Vi, 1921.
With the opening of the new year there seems to be a
better feeling in Winnipeg and throughout the west. Whole-
salers report encouraging prospects for a good spring and
summer season from out-of-town reports and points through-
out the whole of the west. The signs of depression are grad-
ually disappearing, and reports from many points are r&ther
on the bright side.
It was feared by some people a few weeks ago that
there would be an epidemic of failures throughout the
west, but it is encouraging to note that so far there is no
sign of anything in the nature of an epidemic. Failures
are taking place, but these occur every year, and as far as
can be gathered there appears to be no large number of
failures in Western Canada.
The provincial savings bank system has made consider-
able strides since it was put into operation a few months
ago. Deposits now exceed over one million dollars, and
the opinion is expressed by government officials that the
operations so far have been very successful. Two branches
are now operating in Winnipeg, and there are also branches
at Brandon, Portage la Prairie, Dauphin, Neepawa, Stone-
wall and Carman.
The unemployment situation in Winnipeg is not con-
sidered serious, and many openings are being uncovered for
those out of work, and applicants are showing a willing-
ness to take any work offered. T. R. Deacon, of the Mani-
toba Bridge and Iron Works, believes that normal conditions
^vill prevail in a short time. He states that the 150 men laid
off at the end of the year by his firm will be taken on
within the next week or so. Motor business is at, a stand-
still, and it is not expected that it will improve much for a
couple of months.
In the local stock exchange there is a general upward
movement in the prices of war loans and Victory bonds.
To-day all issues showed an advance, with 1937 bonds being
offered at par and selling at 99 1^. There is a steadily
growing demand by small investors, local bond dealers re-
port.
F. W. Russell, land agent of the Canadian Pacific Rail-
way, who has just returned from a trip through the west,
states that business men are optimistic regarding the future.
Mr. Russell reports that inquiries from all parts concerning
land in Western Canada received by the land department
of the railway have been numerous and encouraging. Mr.
Russell believes that the west is on the eve of a period of
great land settlement, with the majority of settlers coming
from the United States and the British Isles.
At the annual meeting of the Union Bank of Canada
held in Winnipeg this week, very encouraging reports were
presented of business for 1920. This strong western financial
institution fills an impoi-tant part in the business of the
west. The staff of the bank now totals 2,313.
W. E. Milner, managing secretary of the Winnipeg
Board of Trade, in reviewing business conditions in Winni-
peg during 1920, said, "I never saw such a fever of pessimism
as existed in Winnipeg and the west from July first to De-
cember fifth last year," he said, but declared that for all
this feeling of depression he was prepared to show that
Winnipeg and Western Canada were in better condition than
any other country. In the matter of bank clearing alone
Winnipeg stands twelfth among all the cities of the North
American Continent. He quoted figures to show that Winni-
peg has a postal revenue larger than that claimed by Mont-
real.
That the unusual demand for life insurance which de-
veloped in 1919 continued almost throughout 1920 is evident
from the seventy-fourth annual statement of the Canada
Life Assurance Company, which was presented at the an-
nual meeting held in Toronto on January 13. Policies issued
during the year, including revivals, amounted to $63,524,-
552, being by far the greatest volume of new business ever
issued by the company in any year, and exceeding that of
the previous period by $17,143,778. The new paid
for business, exclusive of dividend additions, totalled $58,-
260,558, an increase over 1919 of $16,618,681.
The total income during 1920 was $15,729,307, which in-
cludes premium income, new and renewal, of $11,265,906 (ex-
clusive of payments made to companies for re-assurances) ;
considerations for annuities, $351,062; interest income, in-
cluding profits from sale of securities, $3,955,617; and in-
come from other sources, $156,722. The statement of re-
ceipts shows an item of $2,000,000 not included in the above
figures, and representing a bank credit used to purchase securi-
ties. Payments of $8,254,883 were made during the year to
policyholders and their representatives, and to annuitants.
These payments were in settlement of death claims, matured
endowments, dividends, cash values for policies surrendered,
and annuities.
Under the strong basis of valuation adhered to by the
company, it is shown that the policy reserves at December
31, 1920, amounted to $63,664,740, an increase of $5,598,467
as compared with the corresponding reserves of 1919. After
allotting $2,754,522 to those entitled to share in dividends in
1920, the surplus amounted to $6,394,089, including dividends
to policyholders payable during 1921. In view of the heavy
payments to policyholders, in settlement of deferred and
quinquennial dividends falling due in the past year, this
surplus is considered eminently satisfactory. In addition,
the contingent reserve of $500,000 has been maintained. The
net surplus earned in 1920 was $2,162,689, which exceeds the
net surplus earned in any previous year.
IMPERIAL LIFE ASSURANCE COMPANY
The annual meeting of the Imperial Life Assurance Co.
was held on Tuesday, and the report for 1920 showed the
following progress: —
1919. 1920.
Premium and interest income $ 4,171,609 $ 4,973,801
Reserves for policyholders 13,892,960 16,018,228
Payments to policyholders 1,531,318 1,349,866
Total assets 16,983,112 19,310,403
Assurances in force 92,634,158 116,201,347
The receipts totalled $21,146,444, being made up of
net ledger assets from 1919, $16,112,942; premiums, $3,983,-
735, compared with $3,266,124 in 1919, interest, etc., on in-
vestment, $994,303, compared with $940,232 in 1919, and
$55,462 consideration for supplementary contracts. The dis-
bursements included policy claims, profits, annuities, etc.,
$1,349,866 compared with $1,531,318 in 1919; commissions,
salaries and expenses, $1,140,701, compared with $919,832
in 1919; supplementary contract payments, $51,820; taxes,
licenses, subscriptions, etc., $50,032; rent and furniture,
$54,314; general and loaning expenses, $196,793; and divi-
dends to shareholders, $67,500.
The balance sheet shows total assets to be $19,310,403.
Mortgages have increased from $4,866,958 to $5,133,640,
bonds from $8,600,468 to $9,951,818, and loans on and pur-
chased policies from $2,012,436 to $2,366,732. The reserve
for assurances and annuities have increased from $13,760,757
to $15,900,925, and the policyholders' net divisible surplus
from $1,962,084 to $2,115,857.
January 14, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
of Canada
Address : Corner Church and Court Streets, Toronto, Ontario, Canada.
Telephone: Main 7404, Branch Exchange connecting all departments.
Cable Address: "Montimes, Toronto."
Winnipeg Office: 1206 McArthur Building. Telephone Main 3409.
G. W. Goodall, Western Manager.
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The Monetary Times does not necessarily endorse the statements and
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PRINCIPAL CONTENTS
EDITORIAL: PAGE
Forewarnings for 1921 9
Gold Movement From Canada 9
Fire Insurance Costs and Commissions 9
Tanning Industry in 1920 10
Too Much Cancellation of Business 10
Special Articles:
More Than Seven Millions of New Banking Capital 5
Financial Relations With the United States 18
Commercial Failures in Canada in 1920 24
The Bankruptcy Act in Operation 26
Protests Regulation of Insurance Commissions . . 32b
New Hazards to Plate Glass 33
Scottish Canadian Assurance Obtains License .... 35
Public Stock Offerings in 1920 38
Notice of Assignment 42
"Monthly Departments:
December Fire Losses 22
November Building Permits 36
Weekly Departments:
News of Industrial Development in Canada 44
News of Municipal Finance 48
Government and Municipal Bond Market 50
Corporation Securities Market 54
The Stock Markets 56
Corporation Finance 58
Recent I'lres 60
•OREWARNINGS FOR 1921
GOLD .MOVEMENT FROM CANADA
A.MNU.'\L reports now being presented by some of the
largest financial institutions in this country show little
tliat is new so far as profits are concerned, but a compari-
son of balance sheets with those of a year ago brings out
the new tendencies which have developed during the course
of the year. The profits are in nearly every case greater
than in 1919, but the difference is usually small, and is offset
by higher ta.xes and by requirements for depreciation and
other contingencies which have now become probabilities.
One year ago bankers were everywhere calling atten-
tion to the epidemic of extravagance which was sweeping
over the country, bringing expansion of credit and increases
in imports. Such a condition, it was pointed out, could not
long continue after the end of the war, and had their advice
been more closely heeded, fewer businesses would have been
caught in the downward sweep of prices last fall.
While the most critical period seems to have been passed,
there is still need for caution, and Sir Edmund Walker at
the annual meeting of the Canadian Bank of Commerce on
Tuesday reiterated his warning of last year. He did not
refer, however, to what has been one of the remarkable
illustrations of extravagance, viz., the relatively small in-
crease in bank deposits compared to the growth of loans.
While savings deposits have increased to some extent during
the past year, demand deposits show a reduction, which is
rather conclusive evidence of the tightness of credits as com-
pared with what business would like to use.
From the insurance field come also evidence that com-
mitments made in the fervor of the past few years may
prove burdensome in some cases. G. A. Morrow, president
of the Imperial Life Assurance Company, pointed out at
the company's annual meeting on Wednesday that policy
loans had increased by $354,000, which, while not an unfav-
orable showing, may be taken, in conjunction with general
manager Weston's emphasis on the need for preventing
lapses, as an indication that the companies have some fear.«
that some of the business written at inflated levels and in
prosperous times will not remain on their books.
THK importance of this country as a source of gold for
the United States is indicated by figures just made
public. The United States received $34,200,000 in gold from
Canada during the year just closed, while of the gold ex-
ports $5,500,000 went to the Dominion, according to announce-
ment made on January 12 by the Federal Reserve Board.
This statement shows a net gain in the United States stock
of gold of $106,800,000 during 1920, as against a net loss
for 1919 of $291,700,000. Gold imports for 1920 totalled
$428,700,000, as compared with $76,500,000 for 1919, v/hile
gold exports aggregated $322,100,000, as against $368,200,-
000 exported in 1919. Silver imports for the year totalled
$88,100,000, as against $89,400,000 in 1919, while exports
of silver for 1920 amounted to $113,600,000, as compared
with $239,000,000 the preceding year.
Of the total gold imports for the year, $274,900,000, or
over 64 per cent., came from Great Britain, which the board
said included $108,500,000 of gold formerly held by the Bank
of England for the account of the Federal Resem'e Banks
and returned late in the year to the United States. Other
large shipments in addition to the $34,200,000 from Canada,
were $48,700,000 from France, and $30,200,000 from Hong
Kong. Nearly 60 per cent, of the total gold exports for the
year, the board said, were consigned to Asiatic countries, and
over 30 per cent, of the total, or $101,300,000 to Japan alone.
FIRE INSURANCE COSTS AND COMMISSIONS
THE Ontario government proposes to introduce at the
coming session of the legislature a bill to limit fire
insurance agents' commissions to a flat rate of 15 per cent.
Judge Masten, in reporting upon fire insurance business in
Ontario, in 1919, found that commissions were excessive, and
recommended that, unless the companies themselves found
some way of reducing them, legislation should be enacted to
THE MONETARY TIMES
Volume 66.
do this. The superintendent of insurance for the province
accordingly called a meeting on December 16 for an ex-
change of views with the companies. The government's
plans had already been made public in the press, and al-
though several alternatives were presented by the company
representatives, no change in its intentions was indicated.
The Ontario Fire Insurance Agents' Association, of which
J. S. Dowling, of Brantford, is president, is taking active
steps to fight the measure, and has engaged council to op-
pose it before the committee of the legislature. Some of the
companies are also opposing it, but there are a few, which
already have the branch office system, which are not averse
to the new measure, though they do not favor the principle
of government control.
It is undesirable that such a measure as is proposed
should be placed upon the statute books of Ontario. Govern-
ment control of commodity prices and of security prices failed,
and was found to be particularly objectionable when an
effort was made to fix the "spread" between pi-oducer and
consumer, or to limit the retailer's profit, which corresponds
to the fire insurance agent's commission. It is therefore
unfortunate that the latter should be singled out for a re-
newed attack of government control at a time when the
tendency is to release public regulation.
When the Hasten report was presented, however, in-
surance men acclaimed it as a vindication of existing methods
of doing business, which it was, in fact, with the exception
of the part relating to commissions. They have quoted it
with approval from time to time during the past two years,
but have taken no action to forestall the legislation which
the government could scarcely avoid introducing. The re-
sponsibility for conducting the fire insurance business on a
sound and economical basis rests first of all upon the com-
panies, not upon the government, and it strikes the outsider
unfavorably when he sees that more is paid out in acquiring
business than in meeting claims, as is quite commonly found
in the case of individual companies. While, therefore, such a
regulation as that proposed should be regarded only as a
last resort, the only alternative available to the companies
is to find some means of reducing the excessive commissions
now paid in the larger cities, and reducing the cost of ac-
quiring business as a whole.
TOO MUCH CANCELLATION OF BUSINESS
SLACKNESS of business is being enhanced by the cancella-
tion of orders, which throws back upon the manufac-
turer or wholesaler goods which he thought were clear of his
warehouses. The Maritime Merchant relates the following
experience of a commercial traveller in this connection:
"Last Sunday I spent in the village of and went to
church in the evening. The clergyman preached on the
sanctity of contracts, incidentally alluding to Germany and
the Belgian 'scrap of paper.' I thought it was a very good
sermon. On the way out I got a signal from a man in the
opposite aisle, one of my customers, that he wanted to speak
to me. And what do you think he wanted to say? He wanted
to tell me that he wouldn't require the two puncheons of
molasses which I had sold him in November for the first of
January shipment. The question is — Was he asleep during
the sermon?"
There are undoubtedly cases where the only way out
is to cancel, but the tendency of our commerce and trade
should be set against this practice rather than in favor of
its continuance. A contract is a business obligation, and if
the firm to whom it is given lives up to its terms, it is the
legal and moral duty of the purchaser to live up to his part
and accept the shipment. The reason why these business
obligations are not discharged is, in the majority of cases,
because it will not pay to do so. It pays better to disregard
business obligations, therefore disregard them and let the
other firm worry about what is to be done about it.
Canada needs more common, every-day honesty in deal-
ing with such matters as disregarded business obligations.
It is a vicious practice, and, once started, strikes farther than
any one would dare do in any other way. Going through a
season such as we are now, with contracts being cancelled
simply because it does not pay consignees to honor their
orders, creates a feeling of business instability that is hard
to overcome and difficult to counteract. It is generally under-
stood that where a firm fails to make shipment on time, or
where the goods are not up to samples, or faulty in any way,
there are grounds for refusal and rejection. It is right and
proper that such should be the case. This is a perfectly
legitimate practice, and a defence for good business methods.
But this is far removed from the cancellation craze that has
taken business by the throat in this country. Let us have
in Canada a business community that will recognize con-
tracts, and regard them as business obiie'atioiis which they
are morally bound to discharge.
TANNING INDUSTRY IN 1920
SOME of the difficulties which have faced the tanning industry
during the past year were brought to public attention
at the annual meeting of the tanners' section of the Toronto
Board of Trade recently by J. Sinclair, chairman, when
he pointed out that never before have the tanners been faced
with such high costs on the one hand and such fluctuations in
prices on the other. During the year they have had to meet
steadily declining prices for hides and leather, until it was
claimed, competent authorities consider, that the price levels
are lower than circumstances would justify. On the other
hand, manufacturing costs, labor, fuel and freight rates have
increased, while labor efficiency is charged with such a de-
crease that "production costs are about 50 per cent, higher
than what would appear justified from the actual increase in
wages." The tanners had to face the further fact that in the
spring these were heavy cancellations of orders due largely, to
the retail shoe trade cancelling their orders and returning
shipments to the manufacturers, who in turn cancelled unfilled
orders with the tanners. "This," Mr. Sinclair went on to
point out in his report, "spread like an epidemic to other
branches of the leather trade; consumers stopped buying;
while the adverse exchange situation has prevented our seek-
ing foreign markets, and curtailment has since been the order
of the day."
On top of their ordinary troubles the tanners have had to
meet the dumping of goods from the United States. The tan-
ners across the line encountered the same situation as the
local tanners, and when financial pressure was brought to bear
upon them they tried to unload their supplies by dumping
them in Canada "at prices ruinous to themselves even on re-
placement values." This dumping, Mr. Sinclair was convinced,
should be discouraged, as it tends to demoralize the Canadian
market and prolong the period of reconstruction. But in
spite of such conditions Mr. Sinclair was optimistic that con-
ditions would right themselves in the industry, and that the
buying public would shortly gain greater confidence.
H. J. Sims' book, "Life Insurance Contracts in Canada,"
is one that should be on the desk of every agency manager.
Insurance litigation is too common, and is too often due to
misunderstanding between agent and assured.
Canada's foreign trade is growing, and our goods are
being carried abroad more and more in Canadian ships.
This means that marine insur&nce offers increasing possi-
bilities for Canadian companies.
STRICTLY COMMERCIAL
"We have a mummy in this museum," said the guide,
"that has had some wheat in his hand since the days of the
Pharoahs."
"Well," rejoined Mr. Dustin Stax, "I'd advise him not to
hold on any longer. Wheat'll never be any higher."
JanuM-y I'l. 1921
THE MONETARY TIMES
TO INVESTORS
We have recently opened
a Bond Department at
Toronto, through which
we shall be glad to
arrange the purchase or
sale of Victory or any
other bonds for our cus-
tomers.
THE CANADIAN BANK
OF COMMERCE
Head Office
Paid-up Capital
Reserve Fund
$15,000,000
$15,000,000
Real Banking Service
All branches of this Bank are in
a position to give the most com-
prehensive Banking service.
Government and Municipal
Securities are dealt in. Foreign
Exchange bought and sold.
Money Orders and Letters of
Credit issued. Collections made
on all points in Canada or
overseas.
IMPERIAL BANK
OF CANADA
212 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
International
Trade
""PHE success of
■*■ international
relationships is
primarily dependent upon com-
merce between nations.
Our Foreign Trade Department is
equipped to render a complete,
world-wide service. We invite you
to utilize our facilities.
Foreign Exchange Departments — with pri-
vate wire service — at London, Eng., New
York, Montreal, Toronto, and Vancouver.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established
1832
Capital
.
$9,700,000
Reserve
$18,000,000
Total As
sets
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
35. OLD BROAD STREET. E.C.2
THE MONETARY TIMES
PERSONAL NOTES
Hon. Walter C. Nichol, founder and owner of the Van-
couver '•Province," has been appointed lieutenant-governor
of British Columbia.
John D. Irwin, who has been associated with the stock
and investment house of Morrow and Jellett, Toronto, for
some years, has been admitted to partnership.
Ernest C. Dean, who for several years has been as-
sociated with the Montreal stock brokerage house of C.
Meredith and Company, has been admitted to partnership
in the company.
G. B. Greene has been elected president of the Ottawa
board of trade for 1921 by acclamation. Cecil Bethune,
former secretary of the board, has been elected first vice-
president by acclamation.
H. C. Wilson, formerly of the investment house of Bur-
dick Brothers, and Brett, Limited, Vancouver, has been ap-
pointed manager of the bond department of the British-
.A.merican Bond Corporation at Vancouver.
Robert E. Patterson, at present assistant manager of
the Employers' Liability Assurance Coi-poration at Toronto,
has been appointed general manager of the Globe Indemnity
Company, Montreal. Mr. Patterson is thirty-eight years old
and has spent
twenty years with
the Employers'
liability vi'here he
has gained valu-
able experience in
all branches of
casualty insurance.
This is considered
an excellent ap-
pointment and is a
matter for con-
gratulation all
round. In his new
position Mr. Pat-
terson will succeed
John Emo, who re-
signs as from
March 31. Mr.
Emo organized the
Canadian Railway
Accident Insurance
Company in 1894,
which company
passed to the con-
trol of the Liver-
pool and London
and Globe Insurance Company, Limited, in 1910. Sub-
sequently the name was changed to the Globe Indemnity
Company of Canada. Mr. Emo has therefore been general
manager for twenty-five years. For some little time past
he has not been in the best of health and has come to the
conclusion that it will be better for him to engage in agency
business which will enable him to enjoy more outdoor life.
Consequently he will, on retirement, enter the agency field
as a representative of his old company. Needless to say, the
directors have recognized Mr. Enio's long service by making
him a suitable retiring allowance.
C. T. Grantham has resigned as manager of the Empire
Cotton Mills, Limited, of Welland, Ont., and has handed the
management over to J. D. Payne and J. G. Johnston. Under
the new management Mr. Payne will act as secretary-treas-
urer of the concern and Mr. Johnston as mill superintendent.
George W. Lee has been appointed chairman of the
board of commissioners of the Temiskaming and Northern
Ontario Railway. Mr. Lee began in the freight office of the
Canadian Pacific Railway, and left to become travelling
freight agent of the T. and N. O., from which he rose to
general freight agent, and then to commissioner in 1914.
Mr. Lee was born in Renfrew County and worked as a lum-
berman for fifteen years. His home has been in North Bay
for many years and he has been elected repeatedly to the
mayoralty and council of that town. A profit of $300,000
was shown in the financial statement of the T. and N. O., for
the year ended October 31, during the whole of which time
Mr. Lee was in charge.
Joseph P. Cannon, of the Toronto Stock brokerage firm
of J. P. Cannon and
Company, was elected
president of the Stand-
ard Stock and Mining
Exchange at its an-
nual meeting held on
January 11. The other
officers elected are: 1st
vice-president Hamil-
ton B. Wills, 2nd vice-
president F. Asa Hall,
secretary-treasurer P.
G. Kiely, and Directors
F. J. Crawford, J. T.
Eastwood, D. G.
Lorsch, F. M. Lorsch
and L. J. West. A
satisfactory year was
reported. The Stand-
ard Stock Exchange
lists mining issues, and
is the most active
market in Canada for
some of the leading
mining stocks. It is
located at 56 King St.
West, in the centre of the city's financial district.
OBITUARIES
Sir William Peterson, formerly principal of McGill
University, Montreal, died in London, England, last week.
James H. Kittermaster, manager of the Lambton Loan
and Investment Company, Sarnia, Ont., died in the city last
week.
H. A. Harvey, who was connected with the Bank of
British North America for many years, died in Montreal last
week, following a short illness.
James Bryce. formerly vice-president and general man-
ager of the Canadian Express Company in Montreal, died in
that city last week.
Frank P. Currie, president of the Dominion Paper Com-
pany, Limited, and of the W. and P. P. Currie Company,
Limited, died in Montreal last week. Mr. Cun-ie came to
Canada from Lanarkshire, Scotland, in 1862.
Sir Frank Baillie, one of Toronto's best known citizens
and well-known throughout the Dominion, died in the Wel-
lesley Hospital, Toronto, last week. The late Sir Frank
Baillie, K.C.B.E., was president of the Canadian Aeroplanes,
Limited, Toronto; president of the Canadian Cartridge Com-
pany, Limited, Hamilton, and president of the Burlington
Steel Company, Limited, Hamilton.
James Clancy, formerly provincial auditor for Ontario,
died at his home in Toronto on January 8. Mr. Clancy had
been in the service of the Ontario government for a long
time, having held the position of provincial auditor for fifteen
years prior to his superannuation a few weeks ago.
William FitzGerald, former superintendent of insur-
ance for the Dominion government in the finance department,
died at Ottawa last week in his 78th year. He was a native
of London, Ont., and went to Ottawa as assistant deputy
minister and superintendent of insurance on December 1,
188.5. Previously he had practised law in Toronto.
January 14, 1921
THE MONETARY TIMES
oiiiijimMnimiiDiJiiinmnsijiiiiiiniiiniijiiiiiuiiiuiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiimmuDiiiiie
I The Sterling Bank |
I OF CANADA |
!^]iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiitiiiiiiMiiMiiiiiirniiniiiiiiiiiniiriiiiniiiinniiiimiiiiiiiiinnmMmuuiii[niiiiiiimiiiiiiimiiiiiiiniiiiititiiii^
Our Bond Department — recommending only the
highest type of government and municipal
bonds — is equipped to handle buying and selling
orders to your best advantage.
Head Office
KING AND BAY STREETS, TORONTO
The National Bank of Scotland
Limited
Incorporated by Knyal Charter and Act of Parliament. Established 1825
Capital Subscribed /S.OOO.OOO 525,000,000
Paid up 1,100,000 5,500,000
Uncalled 3.900,000 19,500,000
Reserve Fund 1,000.000 5 000,000
Head Office • EDINBURGH
WILLIAM CARNEOIB. General .Manager. GEOHGE A. HUNTER, Sec.
LONDON OFFICE— 37 NICHOLAS LANE. LOMBARD ST., B.C. 4
T. C. RIDDELL, DUGALD S.MITH.
Manager Assistant Manager
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London, are
retired on terms which will be furnished on application.
Safety Deposit Boxes
Securities for Safe Keeping
.The distinction should be noted between
the safe DEPOSIT of securities and the
CARE of securities. This Company rents
Safety Deposit Boxes for the deposit of
valuable papers to which the renter alone
or his authorized agent has access. When
securities are placed in the CARE of this
Company, it not only safeguards them, but
it also collects the income, remits pro-
ceeds, makes accurate accounting and
performs other valuable services.
THE BANKERS
TRVSr OOMB^NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Offices throughout Canada
Premises in the Merchants Bank Building in each city
(Tommon wealth Banl^ of Hustralia
All classes of GENERAL AND SAVINGS BANK business are trans-
acted in all the principal cities and towns of Australia, Rabaul and
London.
JAS. KRLL,
Deputy Governor 1920
DKNISON MILLER.
Governor
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
head ol-l-ice. weyburn, saskatchewan
Br.\nchks in Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midale
GrifTui. Colgate, Panguiau, Radville, Assiniboia, Benson,
Verwood. Readlyn, Tribune, Expanse, Mossbank, Vantage,
Goodwaler, Darmody, Stoughlon. Osage, Creelnian and
Lewvau.
A GENERAL BANKING BUSINESS TRANSACTED
H. O. POWELL. General Manager
Your Estate
May Be Small
— All the more reason to have it ad-
ministered safely for your family.
Appoint this Company Executor of
your Will.
Booklets on request
National Trust Company
Limited
Capital Paid-Lip
Reserve
18-22 KING STREET EAST
$2,000,0(1(1
$2,000,000
TORONTO
THE MONETARY TIMES
Volume 66.
BANK OK TORONTO ANNUAL MEETING
Some of the difficulties of carrying on banking at the
present time were pointed out at the annual meeting of the
Bank of Toronto on January 12, but, on the whole, Canada's
position was considered to be a relatively fortunate one.
Authority was received to enlarge the board of directors
from twelve to fourteen, and one of the newly-created va-
cancies was filled by the election of James D. Cha-plin, M.P.,
St. Catharines.
In the course of a review of the financial situation, Presi-
dent W. G. Gooderham referred to the recent severe strain
on the credit situation, and said it had been the policy and
desire of the banks in Canada th&t readjustment of prices
should take place gradually. "Pressure in the United States,"
he said, "took a more vigorous form, and resulted in forced
sales being made on a large scale, and a severe drop in prices
of many commodities. This action on their part was neces-
sarily to some extent reflected in Canada, but it is to the
credit of our banks that what might have proved a very
serious situation has been handled so prudently." Cana-
dian trade had turned latterly toward & great increase in
imports, and the situation was complicated by the deprecia-
tion in the currency of the larger European countries, which
made it impossible for them to pay for imports that were
absolutely essential to them, if they are to regain means of
living. "Such la-rge sections of the world are in a state of
economic chaos that the usual exchange of commodities can-
not be made, and under these conditions we cannot hope to
extend our trade with them upon a cash basis."
Discussing the general situation. General Manager
Thomas F. How said th&t in some instances the downward
movement in prices had been rapid and had probably gone
too far for the present. "In general, however," he said, "we
are working to a more reasonable and healthy condition of
business, which is greatly to be desired, and in the best in-
terests not only of the banks, but of all cl&sses of the com-
munity. It is unfortunate that the readjustment should in-
volve more or less loss and hardship. This, however, is in-
evitable. The necessities of the war forced a departure from
sound principles of business and finance. Many government
regulations and restrictions, interfering with the laws of
supply and demand and free competition, were considered
necessary. We are now working our way back slowly, in
some cases painfully, to a natural and normal condition. We
have been doing what we could directly with our customers,
as well as indirectly, to influence a policy of caution and
preparedness, and although our advice has not alw&ys been
taken — a banker is often regarded as too conservative for
any business but banking — we are glad to be able to report
to you that your property has been conserved and strength-
ened, i>nd is in excellent condition, and that our customers,
with remarkably few exceptions, are coming through a rather
trying time in comparative comfort, and are in good position
to avail themselves of an improvement in trade, which, we
hope, is not far distant."
CALCULATING EXCHANGE RATES
A "Half Minute" table for calculating the fractional
premium or discount on exchange has been published by
A. B. Barker, 2 Wellington St. East, Toronto. It advances
by 16ths, with additional tables for l/64th and l/32nd. The
method of calculation is illustrated on page 33.
COMMERCIAL TRAVELLERS' ASSOCIATION
The annual meeting of the Commercial Travellers' As-
sociation, held in Toronto, December 29, was addressed by
E. E. Starr, auditor of the Ontario Workmen's Compensation
Board, who pointed out that commercial travellers, but not
jobbers' travellers, were included within the scope of the
act.
The forty-eighth annual report of the Board of Manage-
ment showed a net surplus for the year of $120,106, and the
total assets had now reached $1,636,943. ■
Walter Moore, the late first vice-president of the associa-
tion, was elected by acclamation to the office of president
for the ensuing year. Harry Dodgson was selected as first,
and Joe Zammers E'S second vice-president, E. Fielding treas-
urer, and James Sargent, secretary. The following members
of the board were also elected : John Everatt, John Cor-
mack, C. A. E. Colwell, Geo. L. Wilmott, J. G. Cane, R. G.
Hector, Benj. Miller, J. Davis and W. H. Judge.
MERCHANTS FIRE MAKES RAPID GROWTH
The results shown by the Merchants Fire Insurance Co.,
in its annual report just made public, for the ye&r ended
December 31, 1920, indicate exceptionally r&pid growth. Gross
premiums were $570,634, compared with $414,829 in 1919,
while interest from investments has increased from $22,779
to $28,1.54. The total cash i-eceipts were $698,081, an increase
of over $200,000, accounted for in part by the rise in pre-
mium income and also by the fact that "cash received for
investments" wfjs $38,000 higher than last year.
The expenses of management were $226,656, or 37.4 per
cent, of gross premiums, while the expenses last year were
$166,422, a ratio of 33.6 per cent. The largest increase is in
the item of agency commissions, which have risen from
$96,322 to $136,030, or by 40 per cent. Salaries and fees are
up by $7,000, and printing, stationery and advertising by
$5,000. The amount paid for cl&ims was $198,978, or 32.8
per cent, of gross premiums, compared with $144,506, or
about 30 per cent, last year.
The balance sheet shows total assets of $948,725, includ-
ing $150,000 of uncalled capital stock. The company's bond
investments, consisting almost entirely of government and
municipal bonds of the best character, total $473,089, &n in-
crease of $112,000, compared with 1919. The new invest-
ments are reflected in the revenue statement by $215,586 of
"cash invested during 1920." The other chief assets are
first mortgages $191,375 (last year $164,500) and head office
building $75,000 (last year $50,000). After allowing for the
legal reinsura^nce reserve, which has risen to $416,023, com-
pared with $309,736 at the end of 1919, and the paid-up
capital of $150,000, there is a net surplus of $221,702, or
nearly $90,000 greater.
LIFE INSURANCE TAXES IN QUEBEC
To request a reduction in the taxes at present imposed
upon life insurance agents in the province of Quebec, a depu-
tation of some fifty life insurance officers and agents con-
ferred with Premier L. A. Taschereau and Hon. W. G. Mit-
chell, provincial treasurer, on December 14. The case was
presented by T. J. Parkes, C.L.U., of Sherbrooke, president
of the Life Underwriters' Association of the province of
Quebec, and J. B. McKechnie, president of the Life Officers'
Association, which is a nation-wide institution.
It was pointed out that all insurance agents are licensed
by the provincial government to practise in the province, for
which they pay $5. The various municipalities also tax the
companies from $10 to $200 and each individual agent from
$5 to $100. In addition to a Dominion tax and to the taxes
imposed upon the companies by the municipalities, the pro-
vince charges the companies 1% per cent, on the gross pre-
mium income. This, it was contended, was a triplication of
taxation, and amounted to about 2 per cent, of the gross
premium income, and by that much reduced the profits of
the policyholders, or increased the cost of their insurance.
If all the taxes were removed the profits would be increased
by about 25 per cent, it was said.
The Premier and Mr. Mitchell promised to go fully into
the question with as little delay as possible. Among those
forming the deputation were: A. B. Wood, Brig. -Gen. E. W.
Wilson, A. J. Meiklejohn and D. L. Young, J. P. Bourgeois,
J. A. Goulet, F. A. Buck, J. A. Saucier, A. Lafontaine, J. G.
Gautier, T. E. Bourke, C. C. Gauvin and G. H. Vaillaincourt.
JanuM-y 14, 1921
THE MONETARY TIMES
15
LONDON JOINT CITY & MIDLAND
BANK LIMITED
The Right Hon, R. McKENNA
; DIRECTORS.
W001.1.EY. Esq
' Subscribed Capital
: Paid-up Capital
j Reserve Fund -
i Deposits WuufJOin. 1920'
HEAD OFFICE >
. £38,096,363
10,840,112
10,840,112
. 367,667,322 |
DON, ^C 2.
THREADNEEDLE STREET,
KS Ji M. 0U> BROAD STREET, LONDON. LC
HomeBankofCanada'
BONDS AND FOREIGN EXCHANGE
Every Branch of the Home Bank is in ready
communication with the Bond and Foreign
Exchange Departments at the Head Office, and
any enquiries made through any branch will
receive prompt attention.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto 5.14
THE STANDARD BANK OF CANADA
Quarterly Dividend Notice No. 121.
A dividend at the rate of Three and One Half per cent.
(i'i) for the three months ending 31st January. 1921, has
been declared payable on the 1st of February, 1921. to
Shareholders of record as at the 17th of January, 1921.
The Annual General Meeting of the Shareholders will
be held at the Head Office of the Bank in Toronto, on
Wednesday, the 23rd of February next, at 12 o'clock noon.
By Order of the Board.
C. H. EASSON,
General Manager.
Toronto, December 15th. 1920.
tacorporat^d
- - ia55
Bratjchca
Capital
and Reserve
Jl"^
$9,000,000 1
o
•ER 130 flR
iNCHtS
1
The present sta
us of Th
e Mo
sons Bank has 1
been re
ached by
service,
by eli
minating unne- I
hVlfa?
Bank.
red tape and by making a man feel that ■
a real friend and adviser in The Molsons 1
EDWARD C.
PRATT.
General Manager 17.121 1
TH€ MCRCMANTS BANK
Head Oftice : Montreal. OF CA.h4A.DA.
Established 1864.
Capital Paid-up, $10,029,622 Reserve Fund and Undivided Profits, $9,475,585
Total Deposits (30th October, 1920) - Over $170,000,000
Total Assets (30tli October, 1920) - Over $209,000,000
Board of Direetor* :
Sir F. OrrOrk-Lewis, Bakt.
Hon. C. C. Bailantynk
K. Howard Wilson
SIR H. MONTAGU ALLAN
Farouhar Robertson
Geo. L. Cains
Alfred B. Evans
General Manager
Supt. of Branches and Chief Inspector :
General Supervisor -
Vice-President
Thomas Ahearn
LT.-COL. J. R. MOODIE
Hon. Lorne C. Webster
D. C. Macarow
E. Mkrrett
. A. Meldrum
A, J. DAWES
E. W. Kneeland
Gordon M. McGregor
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending irom the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramsay and C. J. Crookall, Agents
London, England, Office, 53 Cornhill: J. B.Donnelly, D.S.O., Manager
Bankeri in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank oi Scotland
THE MONETARY TIMES
Volume 6(i.
BANK BRANCH NOTES
WEEKLY BANK CLEARINGS
Thirteen New Branilies Announced in Past Two Weeks —
Twenty-Seven Opened and Fourteen Closed in December
The following- is a list of branches of Canadian banks
which have been opened recently: —
Toronto (Cherry & Commis-
sioner Streets) Dominion Bank of Canada
Jovellanos, Cuba Royal Bank of Canada
Hamilton (Gage & Main Sts.) Royal Bank of Canada
Port Credit, Ont Royal Bank of Canada
Glen Robertson, Ont Bank of Nova Scotia
Bedford, N.S Bank of Nova Scotia
Winnipeg, Man. (Selkirk &
McGregor) Canadian Bank of Commerce
Lake Megantic, Que Provincial Bank
Montma.gny, Que Provincial Bank
Riviere Bleue, Que Provincia-1 Bank
Oak Ridges (Laytop & Dan-
forth Ave.) Royal Bank of Canada
Vancouver, B.C. (Robson St.) . . Canadian Bank of Commerce
St. John, N.B. (King St.) Standard Bank of Canada"
Maurice V. Reath, teller of the West End Imperial Bank,
St. Thomas, has been transferred to the Windsor branch, as
assistant accountant.
E. A. Moore, the manager of the Bank of Montreal af
Prince Albert, Sask., has been transferred to Thorold, Ont.
He is succeeded in Prince Albert by C. P. Colville, of Win-
nipeg.
The Bank of Hamilton has opened new quarters »t the
corner of St. Peter and St. James Sts., Montreal, foi-merly
occupied by the Bank of Nova Scotia. .
The Canadian Bank of Commerce is now installed in
its new building at Retlaw, Alta.
The RoyaJ Bank of Canada has bought from J. O.
Gareau, Ltd., the comer of the departmental store at the
comer of St. Lawrence boulevard and Mount Royal Ave.,
Montreal, for the purpose of establishing a branch of the
bank there.
Twenty-Seven in December
During the month of December there were 27 branches
of Canadian banks opened. The following have not already
been mentioned in The Monclary Times: Field, Ont., Hoche-
laga; Grenville, Que., Provinciale; Leslieville, Alta., Imperial;
Mayerthorpe, Alta., Merchants; Martinville, Que., Nationale;
Philipsburg, Que., Nationale; St. Adrien de Ham, Que.,
Nationale; St. Armand Sta., Que., National; St. Benoit, Que.,
Hochelaga; St. John, N.B., Standard; St. Luce, Que., Hoche-
laga; St. Onexime, Que., Nationale; St. Zenon, Que., Hoche-
laga; Thetford Mines West, Que., Nationale; Tompkins,
Sask., Imperial; Waterville, Que., Nationale; Winterton,
Nfld., Royal.
The following 14 branches were closed: Bl&ckville, N.B.,
Royal; Burritts Rapids, Ont., Royal; Burritts Rapids, Ont.,
Union; Glen Ewen, Sask., Royal; Honeywood, Ont., Home;
Honeywood, Ont., Royal; Kirriemuir, Alta., Merchants; Leip-
zig, Sask., Royal; Little Paddle, Alta., Merchants; Mans-
field, Ont., Union; Montreal, Que., 224 St. James St., Nova
Scotia; Petersfield, Ma-n., Dominion; Sunnynook, Alta., Tor-
onto; Swanson, Sask., Royal.
, The branches opened were distributed among the banks
as follows: Nationale, 7; Royal, G; Hochelaga, 4; Montreal,
2; Imperial, 2; Nova Scotia, 1; Commerce, 1; Provinciale, 1;
Merchants, 1; Hamilton, 1; Standard, 1.
The following are the Bank Clearings for the week ended
January 6, 1921, compared with the corresponding week last
year:^
Week ended Week ended
Jan. 6, '21. Jan. 8, '20. Changes.
Montreal $133,097,882 $168,240,896 - $35,143,014
Toronto 100,209,005 114,948,191 - 14,739,186
Winnipeg 63,557,417 57,924,387 + 5,633,030
Vancouver 13,998,522 16,632,863 - 2,634,341
Calgary 9,383,343 10,230,680 - 847,337
Hamilton 7,254,570 8,032,426 - 777,856
Quebec 5,686,252 6,735,830 - 1,049,578
Edmonton 5,571,449 8,098,997 - 2,527,548
Halifax 4,551,178 7,012,988 - 2,461,810
London 3,346,877 4,839,871 - 1,492,994
St. John 3,478,420 3,996,327 - 517,907
Saskatoon 2,310,631 2,722,941 - 412,310
Moose Jaw 1,774,326 2,261,300 - 486,974
Brantford 1,526,604 1,560,573 - 33,969
Brandon 843,153 996,366 — 153,213
Fort William 1,340,257 1,164,357 + 175,900
Lethbridge 882,539 1,065,809 — 183,270
Medicine Hat .... 541,437 672,348 - 130,911
New Westminster 645,219 684,007 - 38,788
Peterboro 961,709 1,318,371 - 356,662
Sherbrooke 1,167,124 1,560,995 - 393,871
Windsor 2,995,812 2,557,712 + 438,100
Prince Albert ' . . . . 679,929 575,448 + 104,481
Totals* $365,803,655 $423,833,583 — $58,030,028
Moncton- 857,596
Johnston and Ward, members of the Montreal Stock
Exchange, have purchased from Duncanson, How and Com-
pany a seat on the Toronto Stock Exchange. Duncanson,
How and Company formerly held two seats. Stanley John-
ston, of Johnston and Ward, has applied for membership in
the Toronto exchange.
WEEKLY BANK CLEARINGS
The following are the Bank Clearings for the week ended
January 13, 1921, compared with the corresponding week last
year: —
Week ended Week ended
Ja-n. 13, '21. Jan. 15, '20. Changes.
Montreal $124,156,918 $132,797,650 - $ 8,640,732
Toronto 108,146,521 91,891,147 + 16,255,374
Winnipeg 58,769,373 47,435,383 -|- 11,333,990
Vancouver 14,326,344 13,794,414 + 531,930
Ottawa 7,989,101 8,348,960 - 691,129
Calga-ry 8,459,340 8,680,222 - 110,382
Hamilton 6,136,713 6,891,572 - 754,859
Quebec 6,962,822 6,614,523 + 348,299
Edmonton 4,709,895 5,558,987 - 849,092
Halifax 4,404,472 4,926,890 - 522,418
London 3,138,483 4,839,871 - 1,701,388
Regina 4,164,182 4,150,425 + 13,757
St. John 3,278,341 3,364,901 - 86,560
Victoria 2,541,198 2,792,945 — ' 251,747
Saskatoon 1,975,446 2,094,893 - 119,447
Moose Jaw 1,696,442 1,573,203 + 123,239
Brantford 1,560,573 1,290,578 + 269,995
Fort William . . . 973,181 702,657 + 270,524
Lethbridge 745,943 744,829 + 1,114
Medicine Hat 504,200 539,246 - 35,046
New Westminster 511,220 592,848 — 81,628
Peterboro 971,457 845,298 -|- 126,159
Sherbrooke 1,344,185 1,024,329 -f 319,856
Kitchener 935,465 1,106,217 - 170,752
Windsor 2,868,398 2,224,483 + 643,915
Prince Albert . . . 407,112 531,648 - 124,536
Totals $371,677,325 $355,358,119 -|- $16,319,206
Moncton 870,485
Janu&ry 14, 1921 THEMONETARYTIMES 17
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 18171 „ „„
PAID UP CAPITAL - .rflftfe. ' ' 23,828,500.00
RESERVE FUND .... C^SmA 16,375,000.00
RESERVE LIABILITY OF PROPRIETORS - ^<Au^^^f^( ....... 23828500.00
^t^i.>«^. ^ 64,032,000.00
AGGREGATE ASSETS 31st MARCH, 1920 - ^<««25-' $377,721,211.00
Sir JOHN RUSSELL FRENCH, K. BE.. General Manager
331 BR.ANCHES and AGENCIES in the Australian States. New Zealand. Fiji. Papua (New Guinea), and London. The Bank transacts every description
of Australian Banking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2.
AOBNTS: BANK OF MONTREAL, ROYAL BANK OF CANADA
c.
s.
GUNN
&
COMPANY
REAL
ESTATE, INSURANCE,
RENTAL AGENTS
805 Union
Trust Building
WINNIPEG, MAN.
Members of Winnipeg Real Estate Exchange, Winnipeg Stock Exchange
Oborge Edwards. F.CA.
H Percival Edwards W. Pomero
A. Geoffrey Edwards Oswald N-
T. J. Macna.maka T. p. Geggi
K. A. Maim- \V. A. Lorii
Arthur H. Edwards, F.C.A.
Morgan W. Herbert Thomim
Edwards Charlies H. White
J. L. Atkinson
ER John M. Edwards
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO ..
CALGARY ..
VANCOUVER
WINNIPKG ..
MONTREAL
CORRESPONDENTS
HALIFAX. N.S. ST. JOHN, N.B.
LONDON. ENG. PARIS, FRANCE.
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK. U.S.A.
ESTABLISHED 1879
AUoway & Champion
Bankers and Brokers
Member, of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and acid on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
A NEW BOOKLET
"Voluntary Trusts
and their Uses"
T"HIS is the title of a Booklet
we have just issued setting
forth a plan adopted by many
successful business men to make
their surplus funds secure
against loss. It is written from
the layman's standpoint in plain
everyday English, avoiding legal
terms, and phraseology.
Wrile to-day for a copy.
THE
TOROiSTOGEiHERAlTRUSTS
CORPORATIOiS
Bay and Melinda Streets - Toronto
THE MONETARY TIMES
Volume 66.
Financial Relations With United States
Solid Basis tor P^uture Growth — United States Investments in Canada Have Increased
Rapidl.N — Slackening in Industry Means Turning to Development of Natural Resources
With Which Canada is Well Supplied — Movement of Population in This Direction
By RALEIGH S. RIFE
GuaVanty Company of New Y'ork
ON account of the demand for munitions of varied charac-
ter, the industrial capacity of the United States was
gi'eatly increased during the recent war. Thus, as a country,
a great step forward was taken in our tendency to become
more and more an industrial nation. A country predomi-
nantly industrial finds itself confronted with the necessity of
building up a trade with other countries. It must import
foodstuffs to maintain its population, raw materials for man-
ufacturing industry, and export manufactured products in pay-
ment for these imported materials. It often becomes neces-
sary for such a country, to become the pioneer in developing
new markets, which aid in supplying additional sources of raw
materials and foodstuffs and markets for its manufactured
products. This latter process is often accomplished by invest-
ment of capital by the industrial nation in these new coun-
tries. This' was unquestionably the controlling factor in the
British policy in the early 70's in the development of the Ar-
gentine. As the United States goes further with its develop-
ment as an industrial nation our trade and financial arrange-
ments with Canada, our second greatest customer, must in-
crease. Canada has the raw materials that will be needed by
industrial plants in the United States, and the United States
will have capital available for developing these resources.
. How Trade Balance is Offset
At present there is a very strong finaricial relationship
between the two countries. For the fiscal year ended March,
1920, Canada bought from the United States $801,000,000 of
merchandise and sold to the United States $501,000,000, show-
ing a balance in favor of the United States of $300,000,000.
The strict mercantilistic thinker might raise a hand of warn-
ing about this trade condition. But at present Canada need
not be disturbed about such trade relationship. This balance
is covered by two factors which are undoubtedly of material
advantage to Canada. There is a three-cornered trade relation-
ship between Gi-eat Britain, Canada and the United States.
Canada sells Great Britain larger amounts of commodities
than she in turn buys from Great Britain. Thus Canada is
able to pay for the unfavorable balance against her in trade
with the United States by credits arranged from the sales
which Canada has made in Great Britain.
Further, American capital has been gradually invested in
Canada in increasing amounts through American farmers set-
tling in western Canada, through the establishment of branch
plants and factories in Canada, and through other private and
industrial developments and the flotation of Dominion and
municipal bonds in the United States. The investment of
capital in any considerable amounts in a country for its de-
velopment results in the inflow of goods and capital instru-
ments. The year 1919 was a particularly active period for
the investment of American capital. It has been estimated
that over 200 American firms established branch" houses in
Canada and that there was also extensive improvement of
existing branch houses and factories in the country. Official
figures estimate that for industrial purposes alone over $55,-
000,000 of American capital was invested in Canada in 1919,
while American farmers migrating to Canada carried with
them over $18,000,000. In addition to this a total of $80,000,-
000 of Dominion and municipal bonds were offered in the
United States during 1919.* The total investment of Ameri-
can capital in Canada is probably in excess of $1,800,000,000.
* For the first eleven months of 1920 the total amount of
Canadian securities of all classes offered in the American mar-
ket, less refunding, amounted to more than $134,000,000.
This relationship which has already become so strongly fixed
between the two countries should tend to grow with greater
strength as the undeveloped resources of Canada are brought
into use.
Change in Economic Conditions
In answering the question, "What are the forces that
should tend to make Canada a more attractive place for the
investment of American capital in the future?" it is necessary
to bear in mind the whole world economic situation of to-day.
Particularly is it valuable to make a brief survey of the world
economic conditions in this period of readjustment and of bus-
iness depression. Our confidence in the future prospei'ity nf
these two countries must be based upon a proper appraisal of
the fundamental factors underlying these world conditions.
The war resulted in a greatly increased manufacturing capa-
city along many lines. Many new factories were built to
make munitions. It is probably true that the world's steel-
making capacity is at least 50 per cent, larger than at the out-
break of the war in 1914.
The period of speculation and feverish buying on the part
of the people in the post-armistice period has resulted in addi-
tional features. During the war industrial concerns which
had made enlargements to their factories in order to produce
war munitions built up heavy reserves as an offset to the cap-
ital extensions made necessary by war contracts. Instead of
using these reserves to write off the additional plants and
thereby go back to a former pre-war producing basis, most of
these plants endeavored to enlarge their lines of production by
increasing the variety of products and also the quantity of
production. This has tended in the average to increase our
manufacturing plants along many lines. During the specu-
lative period additional factories and plants were built so that
the industrial people might be able to supply what appeai'ed
to be a great buying boom on the part of the public. So, gen-
erally speaking, we see the world to-day confronted with a
long manufactui'ing capacity, the manufacturers confronted
%vith falling prices of materials and products and a slowing up
of the buying power of the public.
Movement to Land is Possible
This phenomenon of slowing up of business appears to be
world-wide. If the slowing up of business continues to be
general and world-wide in character it will seem that, in the
specialized industrial nations, economic forces will be set in
operation tending towards an exodus of people from indus-
trial nations to those countries which have extensive areas of
land for settlement and untouched natural resources awaiting
development. The countries that have already developed a
transportation system to give access to these new regions \\iW
benefit to the greatest degree. This settlement of people upon
new lands will result in increased production of foodstuffs, of
raw materials, and thus tend to bring the world economic fac-
tors of production into a more normal proportion. It is ax-
iomatic that it takes great economic pressure to overcome the
inertia of man to remain in the status quo. The combination
of the spirit of restlessness engendered by the world war and
the present recession of business which in its world-wide char-
acter is affecting many industrial centres will probably be
suflicient to overcome this economic inertia of man. While
the human cost of restlessness and of economic depression
may bear heavily upon particular groups of peoples, it must
be taken for granted that it is one of the prices that are paid
for social and economic progress. This may be just a sign of
Januf-ry 14, 1921
THE MONETARY TIMES
Is Your Property
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THE CANADA PERMANENT TRUST COMPANY
Paid-up Capital
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.Manager. Onta
TORONTO STREET
TORONTO
:h : A. E. Hessin
When selecting a Trust Company as an Executor
choose one whose fixed policy is to give
FINANCIAL ASSISTANCE
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CAPITAL. ISSUED AND SUBSCRIBED ..§1,171.700.00
PAin-ri" CAPITAL AND RESF;RVK 1,172,000 00
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE: WINNIPEG. CAN.
A Newspaper Devoted to
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■"PHERE is published in New York City a daily
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THE BOND BUYER
67 Pearl Street New York, N.Y.
Saskatchewan General Trusts
Corporation, Limited
Head Oltice : Kegina, Sask.
Executor Administrator Assignee Trustee
Special attention given .Vlortgage Investments, Collections,
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all other agency business.
BOAKW OF UIKECTOBS:
W. T. MOLLARD, President G. H. BARR, KC. Vice-President
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Chas. Willouehby William Wilson
E. E. MURPHY. General Manager
Official Administrator for the Judicial District of Weyburn
(Trustee under Bankruptcy Act)
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Chartered Trust and Executor Compaoy
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HON. W A. CHARLTON. .MP.. W.
President. Vice-Pr
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London St. Thomas Windsor Winnipeg 4
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20
THE MONETARY TIMES
Volume 66
the approaching era of expansion which will tend to follow the
period of depression and economic adjustment. The safety of
our present situation must rest in the industrial nations giving
attention to those countries which have undeveloped areas and
untouched resources, lending these new countries the capital
and assistance to develop their resources.
Railways May Be Needed
Canada is fortunately prepared in this respect. It was
generally believed that the de\-elopment of her great transconti-
nental railroads was ahead of her needs and, therefore, an eco-
nomic waste. But the contrary may readily be the result as
she is now in a position to take the greatest advantage of the
world's present economic situation. The means of transporta-
tion are available by means of which the new settlers may get
fairly ready access to these undeveloped areas.
Canada possesses the largest area of undeveloped land
suitable for man in the North American continent. In the
three prairie provinces of Manitoba, Saskatchewan and Alberta
it is estimated that 178,000,000 acres are suitable for settle-
ment, and in those provinces there are only 3.5,000,000 acres of
improved land. The opportunity to acquire ownership of land
and thereby improve their own economic status was the main
impelling motive that brought millions of people from Euro-
pean countries to settle upon the great prairies of the middle
and far west of the United States. This undoubtedly was the
main reason for the great expansion of American business
after the civil war. American farmers are already acquainted
with the opportunities in Canada. In the year 1919 over 52,-
000 people from the United States settled in Canada, the
majority of whom were of the farmer class. The pioneer
spirit on the part of the American agricultural class is still
strong and this should result in increased migration to the
great Canadian northwest.
Forests a Great Asset
In addition to the extensive undeveloped agricultural area
Canada has a forest area of over 225,000,000 acres which must
become a source of great wealth. These resources will make
necessarily a demand for capital from the United States to
furnish lumber for building purposes and wood pulp for the
paper industry. Canada to-day has a varied mineral produc-
tion which in 1919 was estimated in value at over .?170,000,000.
The extent to which Canada is a great storehouse of minerals
which are awaiting development is probably unknown to-day.
The extensive deposits of bituminous coal east of the Rocky
Mountains in the pro\'ince of Alberta will probably be the
basis for future industrial development. At present the gi'eat-
est interest seems manifested in the recent discovery of an
extensive petroleum area in the Mackenzie River basin. If
this basin becomes an important producer of petroleum we
may expect a great influx of American capital for the develop-
ment of this area. It is stated that one American oil company
is expending over $2,500,000 this year in testing this territory.
Huge Potential Water Power
American capital has been and must become increasingly
interested in the opportunities for developing the water-power
resources of Canada. It is estimated that there is available
over 19,000,000 h.p., as compared with the present developed
2,418,000 h.p. We are coming face to face with the idea that
new tests must be made to determine the industrial strength of
a nation. In the past the existence of extensive deposits of
coal and iron were considered the surest foundation for the in-
dustrial success of a country. Recent development and wide
uses of petroleum products have added oil as a third factor.
The early industrial life of the United States was built around
sources of natural water power, but the development of elec-
tricity makes it possible to transform that natural energy of
the water fall to industrial centers rather than the old practice
of transporting the industry to the source of water power.
Thus a fourth factor, namely, water power for hydro-electric
development, is an additional basis for the industrial strength
of the nation. We are just entering the electrical age and are
only beginning to appreciate the possibilities of application of
electrical energy to industry. The growth of chemical science in
relation to electricity will undoubtedly increase the manifold
uses of electrical energy.
It is undoubtedly a fortuitous act of nature that in the
central eastern part of Canada, in the St. Lawrence valley,
there should be located the greatest source of water power in
the eastern part of the North American continent. The St.
Lawrence River, together with the great lakes, give to this
great water power region cheap water transportation to the
heart of the continent and the gi-eat industrial centers. The
industi'ial engineer with vision sees these great untouched
resources beckoning American capital to develop them so that
the producer may be placed in the most advantageous position
to take advantage of rich natural resources and available mar-
kets. The proposed . St. Lawrence ship canal project would
add further to the advantages of this region for the location of
industry.
Tariff is a Barrier
For those people and those industrial leaders who are anx-
ious to have their industries so located as to obtain the best
advantage of the sources of raw materials and natural condi-
tions for production must wish for better trade relations be-
tween the two countries and for reciprocity of tariff treatment,
so that no artificial economic barrier shall be placed between
these two great peoples, thereby tending to prevent the devel-
6pment of their economic activities along lines mutually advan-
tageous to both countries.
Exchange Also a Factor
While Canada is a land of opportunity, making a call to
capital to come and help develop these resources, there is an
additional factor that should tend towards the investment of
American capital in Canada. The present premium on dollars
as measured in the exchange mai'ket between the two coun-
tries should encourage the investment of capital in Canada.
The extensive investment of capital in connection vi-ith the de-
velopment of the resources of the country should in time cor-
rect this disparity in exchange. With the correction in dis-
parity of exchange additional profits should result to the in-
vestor.
As these two countries face the present era of adjustment
of prices and business and the slowing up of demand, their in-
dustrial and financial leaders must realize that they are stand-
ing upon the threshold of a period of great opportunity. Great
economic changes are being made in the fabric of our eco-
nomic life. If proper attention is turned to the development
of new countries, of new areas, through the investment of cap-
ital for the development of their resources, we can face the
future with confidence, realizing that beyond the period of
business depression, of readjustment of values, there is the
period of world-wide economic expansion. The plea must be
made for better understanding between these two great coun-
tries. The great initial step has been taken in a Canadian
representative being sent to Washington. This cannot help
but establish better feeling between these two great countries.
Economically they supplement each other's requirements to a
great extent. Hence the need for increasing the trade and
financial relations between the two countries.
JUDGMENT FAVORS POWER COMPANY
Judgment was given by Hon. Justice Audette, of the
Exchequer Court on December 22 in the case of the King v.
the Ontario and Minnesota Power Co. The government sued
the company for damages to the extent of .$2.3,413 for the
flooding of the Ojibway Indian reserve located at the foot
of Rainy Lake. Flooding was due to the erection of a dam.
The court finds that the company could not be held respon-
sible for the damage done by the flooding of 1918, when ex-
tremely high water prevailed throughout the season, creat-
ing a condition which expert witnesses stated is not likely to
occur again. No costs were allowed to either parties to
the suit.
January 14, 1921
THE MONETARY TIMES
21
INTEREST
RETURN
INVEST YOUR SAVINGS
in a S%% DEBENTURE of
Ihe Great West Permanent
Loan Company
SECURITY
Paid-up Capital $2,413,018.81
Reserves 1,050,000.00
HEAD OFFICE, WINNIPEG
BRANCHES: Toronto, Retina, Calgary,
EdniontOD, Vancouver, Victoria ; Edinburgh,
Scotland.
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building, London. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PURDOM. K.C.. President WATHANIBL MILLS. Monager
London and Canadian Loan and Agency Co., Limited
BSTARI.ISHBD 1873 .">! VO.VUK »T., TOUOMTO
Paid-up Capital, 31.250.000 Rest. t9.i0.000 Total Assets, ?S,085 872
ItelirnlarrH issued, one hundre i dollars and upwards, one to five sears.
Best current rates. Interest payable half-yearly. These Debentures are an
Authorized Trustee Investment- Mortgafte Loans made in Ontario, Mani-
toba and Saskatchewjn.
WILLIAM WBDD Secretary V. B. WADSWORTH. Manager
SIXTY-FIVE YEARS
is a long time in the history of this young Canada of ours, yet during
all that period we have been safeguarding and assisting in the increasing
of the savings of many thousands of Canadians. The steady progress
the Corporation has made bears testimony not only to the confidence
investors have in this old institution, but also lo the unexcelled facilities
we extend to depositors-
Interest allowed at
THREE AND ONE -HALF
per cent, per annum, paid and compounded half-yearly.
al feature of Savings Accounts
and
Canada Permanent Mortgage Corporation
14-1& TORONTO STREET
TORONTO
id-ap Capital $6,000,000.00
serve Fund (earned) 5.750,000.00
^""^ Ontario Loan
& Debenture Co.
LONDON Incorporated 1870
CAPITAL AND Undivided Profits
Canada
$3,900,000
510/ SH
2/0
CRT TERM (3 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
5-52
JOHN MoCLARY. Presitle
A. M. SMART. Manager
/~\VER 200 Corporations,
^'^ Societies, T^-ustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG. Man.
THE TORONTO MORTGAGE COMPANY
Office, No. 13 Toronto Street
Capital Account. JBi^I.SJO.OO Reserve Fund. SUJO.OOO.OO
Total Assets. S3,lJ49.154.a6
President. WELLINGTON KKANCIS. Esq., K.C.
Vice-President, HERBERT LANGLOIS, Esq.
Debentures issued to pay 5%, a Legal Investment for Trust Funds.
Deposits received at 4% interest, withdrawable by cheque.
Loans made on improved Real Estate on favorable terms.
WALTER GILLESPIE, Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
S20 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal .'Vgent for B. C. Municipalities.
Inqairie* Invited
Genrral Manager Lleat.-Col. C. H. DOKKELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official .Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office - - Swift Current, Saskatchewan
JOHN R LITTLE. Managing Director
THE MONETARY TIMES
Volume 66.
DECEMBER FIRE LOSS WAS $3,721,475
Thirty-Five Fires With Damage of $10,000" and Over-
bee, Toronto, Halifax and .Jasper, Alta., Were
Scenes of Largest Fires
-Que-
'I he Monetary Times' record for the past four years shows
the following monthly losses: —
December fire losses in Canada, according to The Mone-
tary Times' estimate, were as follows: —
Fires exceeding $10,000 $3,149,000
Small fires reported 72,475
Estimate of unreported fires 500,000
$3,721,475
The following are the December fires causing da-mage of
$10,000 or over:—
Wolfville, N.S., Dec. 1, building, $125,000.
Jasper, Alta., Dec. 1, business section, $250,000.
Biggar, Sask., Dec. 2, elevator, $75,000.
Ladysmith, B.C., Dec. 3, min, $31,000.
Orillia, Ont., Dec. 4, plant, $35,000.
New Carlisle, Que., Dec. 6, residence, $50,000.
St. John's, Nfld., Dec. 7, bakery, $100,000.
Vancouver, B.C., Dec. 8, rooming-house, $80,000.
Quebec, Que., Dec. 9, stores, $50,000.
Woodstock, Ont., Dec. 13, building, $10,000.
Montreal, Que., Dec. 14, building, $10,000.
Quebec, Que., Dec. 15, college, $500,000.
Moncton, N.B., Dec. 15, building, $25,000.
St. Stephen, N.B., Dec. 15, residence, $60,000.
Sudbury, Ont., Dec. 20, building, $65,000.
Toronto, Ont., Dec. 21, building, $15,500.
Craik, Sask., Dec. 22, school, $30,000.
London, Ont., Dec. 22, building, $12,000.
Oxford, N.S., Dec. 22, factory, $100,000.
Montreal, Que., Dec. 23, school, $10,000.
Berthierville, Que., Dec. 23, plant, $300,000.
Regina, Sask., Dec. 23, riding school, $25,000.
St. John's, Nfld., Dec. 23, theatre, $50,000.
Regina, Sask., Dec. 23, shop, $25,000.
Montreal, Que., Dec. 24, building, $25,000.
Halifax, N.S., Dec. 24, banking district, $500,000.
Toronto, Ont., Dec. 24, building, $200,000.
Amherstburg, Ont., Dec. 25, building, $10,000.
Ottawa, Ont., Dec. 25, clubhouse, $12,000.
Edmonton, Alta., Dec. 25, store, $18,500.
Hazelton, B.C., Dec. 26, business section, $100,000.
Montreal, Que., Dec. 27, building, $105,000.
London, Ont., Dec. 28, store, $25,000.
Hamilton, Ont., Dec. 30, store, $80,000.
Arran, Sask., Dec. 31, buildings, $150,000.
Analysis of Causes
Among the causes reported were: Spa-rks, 2; cigarette
butts, 2; explosion, 1; incendiarism, 1; furnaces, 2; defective
wiring, 1; spontaneous combustion, 1; overheated stove, 4;
overturning lantern, 1.
The following structures were destroyed or damaged:
Buildings, 27; residences, 17; barns, 9; stores, 7; schools, 4;
hotels, 2; mills, 2; elevator, 1; steamer, 1; bakery, 1; farm
buildings, 1; church, 1; business sections, 3; boat house, 1;
asylum, 1; theatre, 1; lumber camp, 1; garages, 2.
H&milton, Dec. 3, explosion 1
McKinleyville, N.B., Dec. 3, burnt in building 1
Montreal, Dec. 4, burnt to death 1
Vancouver, B.C., Dec. 8, trapped in building 3
Peterboro, Ont., Dec. 10, clothing caught fire 1
Windsor, Ont., Dec. 19, forced against engine box 1
Baldur, Man., Dec. 19, burnt in building 2
Belleville, Ont., Dec. 20, clothing caught fire 1
St. John's, Nfld., Dec. 23, trapped in building 1
Norton, N.B., Dec. 25, trapped in building 1
Moose Jaw, Sask., Dec. 26, burnt in building 2
St. Gregor, Sask., Dec. 29, burnt in building 3
18
Month. 1917.
January .... $ 1,918,660
February . 2,009,953
March . ... 2,050,650
April 1,317,714
May 1,163,110
June 1,184,627
July 1,101,734
August 1,2.30,183
September . . 1,301,700
October .... 704,605
November . . . 959,049
December . . 5,144,100
1918.
2,688,556
2,243,762
1,682,286
3,240,187
3,570,014
3,080,982
3,369,684
3,110,445
917,286
5,119,145
1,059,580
1,733,917
1919.
3,915,290
1,091,834
2,154,005
1,080,070
1,785,130
3,337,530
1,118,377
1,374,495
1,940,272
1,023,288
2,339,870
2,047,496
1920.
2,637,850
1,895,575
1,793,200
3,229,500
2,001,819
1,424,319
1,426,850
1,857,800
2,480,485
2,467,901
2,769,800
3,721,475
Totals . . $20,086,085 $31,815,844 $23,207,647 $27,706,574
Comparison of Deaths
The record of deaths from fire has been as follows: —
Month. 1913. 1914. 1915. 1916. 1917. 1918. 1919. 1920.
January 14 26 3 10 21 28 13 22
February 21 18 11 23 19 87 26 30
March 22 27 23 23 20 34 9 35
April 11 22 14 6 15 7 27 8
May 33 8 5 14 12 10 15 13
June 18 12 2 6 9 9 28 15
July 9 8 13 268 19 6 11 15
August 29 3 14 30 12 7 24 14
September ... 27 9 27 6 21 13 23 13
October 15 9 7 39 23 11 16 13
■ November 24 14 12 12 21 3 14 31
December 13 19 11 94 15 26 19 18
Totals
236 175 142 531 207 241 225 227
POST OFFICE SAVINGS BANKS
Withdrawals from the Post Office savings banks have
been falling oft" considerably during the past few mouths,
while deposits show a good improvement. In April, 1920,
withdrawals totalled $1,214,707, while deposits were only
$537,316. The September statement shows deposits at $580,-
047, and withdrawals down to $761,619. Details for Septem-
ber are: —
Deposits in the Post Office Sav-
ings Bank during month
Transfers from Dominion Gov-
ernment Savings Banic during
month : —
Principal
Interest accrued
from 1st April to
date of transfer
Deposits transferred from the
Post OfKce Savings Bank of the
United Kingdom to the Post
Office Savings Bank of Canada
1 depositors'
accounts and made principal
31st March 1920, Estimate
Withdrawals during
rEREST allowed to Depositors
>n accounts closed during
nonth
Balance at the credit
of Depositors* ac-
counts on 31st
Aug., 1920
Janurrv 14, 1921
THE MONETARY TIMES
Bank of New Zealand
ESTABLISHED IN 1S61
Bankers to the New Zealand Government
CAPITAL
Paid-Up Capital ($13,528,811) anil Rtttne Fund
($12,166,250) $25,695,061
Undivided Profits 713,039
Aggregate Aiteti at 31il March, 1920 257,500,944
Head Office:
WELLINGTON
NEW ZEALAND
H. BUCKLETON
General Manager
THE B*NK OF NEW ZEALAND has Branches at
Auckland, VVelliriBton, Christchurch, Uunedin. and 203 other
places in New Zealand: also at Melbourne and Sydney
(Australia). Suva and Levuka (Fiji), Apia (Samoa), and
London.
The Bank has facilities for transacting every description
of BanUinu Business. It invites ih^ establishment of Wool
and O'htrr Produce Credits, either in sterling or dollars, with
any of its .*u>n ala^ian Branches.
LONDON OFFICE : 1 Queen Victoria Street, Mansion House, E.C. 4
CHIEF CANADIAN AGENTS .
Canadian Bank of Commerce Bank of Montreal
Bank of Hamilton
HEAD OFFICE
HAMILTON
Established 1872
Capital Authorized
Capital Paid Up (December 31st, 1920)
Reserve Fund (December 31st, 1920)
$5,000,000.00
4,970,300.00
4,685,150.00
Directors
SIR JOHN HEXDRIH. K.C.M.G., C.V.O., President
CVRUS A. BIRGE, Vice-President
C. C. DALTON ROBT. HOBSON W, E. PHIN
I. PITBLADO. K C. J. TURNBULl. W. A. WOOD
Branches
At Montreal, and througlioul the Pro\iiices of
Ontario, Manitoba, Saskatchewan, .■\iberta and
British Columbia.
Savings Department at all Offices.
Deposits of $1 and upwards received.
Advances made for Manufacturingf and Farming
purposes.
Collections effected in all parts of Canada promptly
and cheaply.
Correspondence solicited
J. P. BELL
General Manager
She's Daddy's Girl-
The very sunshine of his life. He's plan-
ning great things for her — if he lives.
And if he dies — well, he's proud of the fact
that she wii! then receive— regularly — each
month — as long as she lives— a cheque from
The Imperial L'f e to provide for her every need.
You can provide in this way for yotir little
girl. Our free booklet tells all about it.
Write for a copy. Address—
THE IMPERIAL LIFE
Assurance Company of Canada
HEAD OFFICE - TORONTO
"-^;^:g^Jllillllig'"'»'''!^''l''''''''''''!'"'^^^^
THE MONETARY TIMES
Volume 66
Commercial Failures in Canada in 1920
Big Increase in Number of Companies Wiiich Went Into Insolvency —
Liabilities Also Grew to Large Figure — Record of Past Seventeen Years
Shows Number of Failures Third Lowest, but Liabilities Third Highest
DULLNESS in trade and financial strain are reflected in
the 1920 statement of business failures in Canada. The
figures, which were prepared by R. G. Dun and Co., show
that 1,078 companies went into insolvency last year, as com-
pared with 755 in the previous year. Liabilities of these com-
panies totalled $26,494,301, or an average of $25,041, while
in 1919 liabilities were $16,256,259, or an average of $21,531.
The number of failures last year was the third lowest since
1904, but the amount of liabilities was the third highest in
that period.
The greatest number of failures, and of the largest
companies, took place during the latter part of the year.
This is not reflected in the annual report, but a comparison
with the half-yearly statement shows that this is so. For
instance, at the end of June, 1920, the number of companies
which had gone into liquidation for the six months was given
as 415, with total liabilities of $7,636,633. If the figures were
more closely analyzed, they would no doubt show that con-
ditions were more severe during the last three months than
in the preceding quarters.
The tables given below show the failures by provinces
for the whole of 1920, together with the amount of liabilities.
A record is also given for the past seventeen years, showing
failures bv classes, and the total.
COMMERCIAL FAILURES IN CANADA, JANUARY TO DECEMBER, 1920
Province
Total Commercial
Manifacturing
Trading
Other
No. ,
Assets
Liabilities
No.
Liabilities
No.
Liabilities
No.
Liabilities
$
« 1
$
s
s
Ontario
269
5,562,541
6,689,224
84
5,590,056
171
1,016,744
14
82,484
Quebec
380 1
8,105,336
13,428,420
102
8,495,163 ■
265
2,662,957
13
2,270,300
Brit. Columbia
64
1,151,756
1,636,163
26
1,139,.574
33
449,589
6
47,000
Nova Scotia. .
50
110.174
367,264
' 8
76,070
41
285,194
1
6,000
Newfoundl'nd
44
1,068,184
1,775,190
4
48,000
.18
1,596,847
2
1.30,343
Manitoba
71
9.S8,149
961,543
14
397,091
.).•)
362,452
2
202,000
New Bruns. . .
,27
73,507
105,898
2
20,000
23
76,898
2
9,000
Prince E. I...
'se'
633,030
' 455,068
's
41
220,568
'7
Alberta
83,800
150,700
Saskatchewan
117
926,839
1,075,471
8
21,462
104
1,033,256
5
20,753
Total
1,078
18,569,516
26,494,,S01
255
, 15,871.216
771
7,704,505
52
2,918,580
{
::OMMERCIAL FAILl
JRES
IN- GANi
\DA, 1904-1920
■
Total Commercial
M
\NUFACTURING
Trading
Other
Calendar
Year
No.
Assets
Liabilities
No.
Liabilities
No.
Liabilities
No.
Liabilities
$
$
$
$
s
1904
1246
8,555,875
11,394,117
307
4,138,908
914
6, .377,788
25
679,421
1905
1347
6,822,005
9,854,659
289
3,129,262
1039
6,5,52,821
19
172,576
1906
1184
6,499,052
9,085,773
293
3,482.511
863
5,145,142
28
458,120
1907
1278
9,443,227
13,221,250
393
6,667,452
847
5,756,651
38
797,156
1908
1610
12,008,113
14,931,790
426
5,967,498
1171
8,242,436
43
712,856
1909
1442
10,318,511
12,982,800
354
3,933,938
1059
7,867,287
29
1,181,575
1910
1262
11,013,396
14,514,650
292
7,030,227
947
6,943,579
23
540,850
1911
1332
9,964,604
13,491,196
321
4,760,016
986
7,606,891
5
1,124,289
1912
1357
8,783,409
12,316,936
323
4,5.56,615
975
6,906,665
59
853,656
1913
1719
12,658,979
16,979 406
452
6,792,763
1216
8,681,419
51
1,505,224
1914
2898
30,909,563
35,045,095
614
11,063,191
2164
18,677,935
120
5,303,968
1915
2661
39,526,358
41,162,321
655
13,877,414
1888
21,696,890
118
5,588,017
1916
1685
19,670,542
' 25,069,-534
363
8,796,646
1237
12,290,368
85
3,982,520
1917
1097
13,051,900
18,241,465
261
7,455,094
777
8,417,239
59
2,.369,132
1918
873
11,251,341
14,502,477
232
8,248,807
590
5,142,397
51
1,111,273
1919
755
10,741,441
16,256,259
213
10,2.34,477
494
4,475,628
48
1,546,154
1920
1078
18,569,516
2«,494,301
255
15,871,216
771
7,704„505
52
2,918,580
The Oshawa, Ont., Life Underwriters' Association on
December 16 elected the following officers for 1921: Presi-
dent, C. C. Stenhouse, Excelsior Life; vice-president, L. Win-
nell. Metropolitan Life; secretary-treasurer, D. A. Morris,
Prudential Insurance Co. Executive committee — F. B. B.
Patten, Manufacturers; V.A.Henry, Sun Life, and E.Smith,
Imperial Life.
COBALT ORE SHIPMENTS
The following are the shipments of ore, in pounds, from
Cobalt Station for the week ending January 7, 1921: —
Dominion Reduction Co., 75,000; McKinley Darragh, 8";,-
484; total, 162,484 pounds, or 81.2 tons.
JamjK.ry 14, 1921
THE MONETARY TIMES
25
-Penalty
Where is John this morning?
Why John has left.
Oh — no — not fired — nothing hke that — John
has accepted a position with H. S. & Co.
at more than double his old salary.
He was an ambitious chap — Was always
looking ahead.
Of course, working side by side, you didn't
realize the fact —
No doubt you placed John in the same class
as yourself —
But he wasn't—
One day about a year ago he heard of the
S. C. S.
He investigated —
Naturally enough he began to study —
And duiing the past year he has not wasted
a single moment —
When the above opening came to the atten-
tion of the school they thought of John.
And so ])ou go on in the same old position,
with the same old limitations, and the same
old pay.
How long will you sentence vowself ?
When will you wake up to see that John's
promotion was the inevitable outcome of his
ambition and his determination to rise ?
We know it was a jolt to you —
John knew it would be — but he was wise to
say nothing — He knew that example is
better than argument.
KnoU'ledge is the motive power behind all real
achievement —
Don't stare at the empty desk — Follow the
man who left it — Get busy — its not too late —
John is not the only onewho has climbed up —
During the past 18 years we have trained
hundreds, many of whom are to-day occupy-
ing positions of might and influence in the
business and professional world —
We have graduates earning all the way from
$4,000 to $10,000 a year.
Below is the same coupon that John marked
a year ago — Are you gomg to mark it— or
are you going to go on paying the penalty of
the untrained ?
The Shaw Correspondence School
TORONTO CANADA
W. H. SHAW
Preaident
W. CHANT
en. Manager
The Shaw Correspondence School,
Toronto, Canada (Dept. M.T.)
Pie
Higher Accounting
Chartered Accountancy
Cost Accounting
Modern Banking
Economics
Bookkeeping
shorthand
Typewriting
Commercial Art
Illustrating
Story Writing
Journalism
Show Card Writing
Advertising
Photography
Salesmanship
Na
liiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiniiiiiiiiiiiiiiwiiii
26
THE MONETARY TIMES
Volume 66.
The Bankruptcy Act in Operation
274 Failures Up to End ol' November — Rapid Increase in Last Two
Months — Over Fifty Companies Included — Creditors Not Yet Thoroughly
.Familiar With the Act — Heavy Costs May Be Piled Up Under it
By ANGUS LYELL
T T is six months since the Bankruptcy Act became law. The
■'■ measure as yet is comparatively new and its full effect on
business has not been felt. For the first five months, to the
end of November last, notices of 274 failures under the act
appeared in the "Canada Gazette." During this period busi-
ness on the whole was good. With the stagnation, more or
less, which is now setting in, it is reasonable to expect that
dui'ing the next two or three months there will be a relatively
large number of failures. The measure has certain advan-
tages over the insolvency laws which were enacted by the
provinces to help meet a want occasioned by the absence of
bankruptcy legislation, and as its scope generally becomes
clear r' course will undoubtedly be had to it by honest traders
whose assets do not equal their liabilities.
IVIonthly Failures Are Increasing
To the end of November last the failui'es reported under
the act by provinces were as follows: —
July Aug. Sept. Oct. Nov.
British Columbia 2 2 5 7 4
Alberta 2 3 3 8 8
Saskatchewan 4 7 4
Manitoba 3 __ 2 1 2
Ontario 10 16 19 23 31
Quebec 22 11 33 29
Nova Scotia- 2 2 4 3
New Brunswick 1 1
Totals 18 49 43 83 81
The only comment that need here be made is the sharp
increase in the number of failures during the month of Octo-
ber, which was maintained in November, and which will likely
show a further increase in December, the figures for the first
half of the month being 58. From Ontario and Quebec come
the greater number of the cases.
Mainly for Individuals
Bankruptcy proceedings usually apply only to the estates
of individuals. Under our act, however, companies may be
wound up, except banks, insurance, trust, loan and railway
companies, and building societies having a capital stock. This
applies, of course, only to companies which are insolvent.
The following analysis of the failures already quoted shows
that the measure is being taken advantage of in the winding
up of companies, although the court still has the jurisdiction
to direct that a company may be wound up as heretofore un-
der the provisions of the Winding Up Act: —
Companies Firms
British Columbia 10 3
Alberta 1 5
Saskatchewan 2
Manitoba 2 2
Ontario 21 20
Quebec 14 17
Nova Scotia 1 3
New Brunswick —
Totals 51 50
Sole
traders
Total
7
20
18
24
13
15
4
8
58
99
64
95
7
11
2
2
274
Majority Are Voluntary Assignments
In the period under review only 21 receiving orders were
made. In other words, nearly all of the cases were voluntary
assignments. Most of the receiving orders — 15 — were made
in the province of Quebec. Four companies, six partnerships
and five sole traders were so adjudged bankrupt. Two receiv-
ing orders were made in British Columbia, one in Alberta, and
three in Ontario. In the first two weeks of December five
receiving orders were granted in Quebec. It is probable that
the number may increase later. As creditors become more
familiar with the provisions of the act they may exercise their
rights under it more fully.
The objects of enacting bankruptcy legislation were to
obtain uniformity of law and practice in all of the provinces,
to relieve honest debtors of liabilities beyond their means and
thus give them an opportunity to make a fresh start, and to
introduce a cheap and expeditious method of closing out insol-
vent estates.
So far as uniformity of procedure is concerned the Bank-
ruptcy Act has accomplished this. The same law now prevails
all over the Dominion. Uniform rules of practice have also
been drafted and put into effect. And honest debtors who
surrender all of their assets for the benefit of their creditors
may be assured of tolerant and fair treatment from the sev-
eral judges who have been appointed to administer the meas-
ure. But will the procedure under the act be cheaper and
more expeditious than that which existed under the assign-
ments acts of the several provinces ?
Legal Costs May Be Heavy
I doubt whether it will be. As a matter of fact I am
inclined to the opinion that the closing out of the estates of
partnerships and sole traders will now be more costly. In the
case of such estates it may now be relatively easy to create
more legal procedure. The tariff of charges is not formidable
at first glance, but on analysis it will be found that a nice
little bill may be prepared and established. When the meas-
ure was passed it was enacted that the maximum amount of
legal expenses would be governed by the gross proceeds of
the assets of an estate. Thus, for an estate that realized less
than $5,000 the solicitor's bill could not exceed 10 per cent, of
the gross realization. In the case of estates realizing more
than $5,000 the maximum was 5 per cent. This provision,
however, was changed at the last session of parliament. The
charges are now governed by a tariff.
It is in the case of defunct companies, however, the af-
fairs of which have often been complicated, that heavy costs
have usually been incurred in the past. Win or lose, litigation
is always costly. Under the Bankruptcy Act it will be pos-
sible to eliminate considerable legal expense in the winding
up of companies. The trustee has much greater powers than
a liquidator appointed under the Winding Up Act, and he
may, with the approval of the creditors or the inspectors ap-
pointed by them, settle by compromise in a rough-and-ready
but good business way many matters in connection with which
it has been usual in time past for legal minds to deliberate.
Some Changes Might be Made
The rules which have been drafted under the act are not
free from criticism from a practical point of view. There is a
good deal, too, in the act which is cumbersome. But possibly
after the measure has been in operation for a year or two
there will be radical amendments. In the meantime the act
deserves favorable consideration. It will tend not only to
the keeping of better records but to the promotion of a spirit
of greater honesty in business. When a man finds that he is
losing ground, that his assets are not equal to his liabilities,
the tendency will be for him to surrender his estate to his
creditors if sound reorganization cannot be effected.
Janiu-.ry 14, 1921
THE MONETARY TIMES
The Canadian Bank of Commerce
At the Fifty-fourth Annual Meeting of the Shareholders, Held in Toronto 11th January, the
Largest Earnings in the History of the Bank Were Reported as the Result of the
Bank's Business for the Second Year in Canada's Reconstruction Period
The Presideat, Sir Edmund Walker, took the chair and,
after the usual organization proceedings, the following
Profit and Loss statement for the year ending 30th Novem-
ber last was submitted: —
Balance at credit of Profit and Loss Account,
brought forward from last year $1,427,735.40
Net profits for the year ending 30th November,
after providing for all bad and doubtful
debts 3,306,243.97
$4,733,979.37
This has been appropriated as follows: — — — — — ^
Dividends Nos. 132, 133, 134 and 135, at
twelve per cent, per annum $1,800,000.00
Bonus of one per cent., payable 1st December 150,000.00
Dominion and Provincial Government taxes
and tax on bank-note circulation j. 350,000.00
Written off Bank Premises 500,000.00
Transferred to Pension Fund 150,000.00
Balance carried forward 1,783,979.37
$4,733,979.37
The report of the Directors alluded as follows to the
changes in the Board which have taken place during the
year : —
Shortly after the last annual meeting the Vice-President,
Mr. Z. A. Lash, passed away. His services to this Bank and
to his country are so well known that your Directors need
not enlarge upon them. He had been connected with the
Bank as its solicitor since 1882, as a Director since 1907, and
as Vice-President since 1910. He was loved for his per-
sonality, and esteemed for his outstanding ability and his
absolute integrity, beyond the fortune of most men. Your
Directors also lost by death during the year Mr. J. S.
Mitchell, who joined the Board in November, 1918. Identified
as he was with the Eastern Townships of Quebec, where his
success in business and his unusual capacity were widely
recognized, his sudden death was deeply felt by this Board
as well as by his fellow-citizens. To fill the vacancies thus
created, the General Manager, Sir John Aird, and Sir Alex-
ander Mackenzie, K.B.E., of Rio de Janeiro, President of the
Brazilian Traction, Light and Power Company, Limited, were
chosen.
After the report had been read the President requested
the General Manager to address the shareholders.
General Manager's Address.
We have now entered upon a period such as has been
looked for ever since the war ended — one of lessened activity
in business and falling prices — and the statement which we
present to you to-day is, except in a comparatively few par-
ticulars, curiously devoid of important changes from that of
a year ago.
Greater Profits.
The net profits of the year amounted to $3,306,243.97, an
increase of $231,351.25, although the rgsources of the Bank
have shown little growth. The addition to our profits has
been the result, partly of the activity of general business
during most of the year and the consequent brisk demand
for money, which has kept all available funds fully employed,
and partly of the fact that we have been fortunate in escap-
ing serious losses. The conditions which have prevailed in
the markets for all staple commodities since the war ended —
the extraordinary demand for goods and the high prices —
have caused a strong demand for money. Now that the
markets are becoming more normal and prices are falling,
that demand is sure to lessen. We may therefore expect
easier money conditions and a lower level of profits until
business becomes more active.
In addition to the regular dividend of 12 per cent, per
annum, we paid last December a bonus of 1 per cent., mak-
ing a total distribution to our shareholders of 13 per cent,
for the year. We have appropriated $350,000 towards the
heavy taxes we are now called on to pay to the Governments
of the Dominion and of the various Provinces of Canada,
including in this the tax on our note circulation imposed
under the provisions of the Special War Revenue Act of 1915.
We increased our appropriation for bank premises from
$250,000 last year to $500,000 this year. The high cost of
all building operations in this country, and our expenditures
on premises for the foreign branches recently opened, make
this a prudent step.
Increase to Pension Fund.
We have transferred $150,000 to the Officers' Pension
Fund, an increase of $30,000 for the year, partly to provide
for the growth of the staff, and partly because the actuarial
examination, which took place during the year, made it clear
that this was necessary. As you know, it is our custom
every ten years to have the Fund examined by an actuary,
and we base our contributions upon his report. This year
it showed that, owing to the increase in the general level of
salaries, necessitated by the heavy increase in the cost of
living which followed in the train of the war, the sum per
head fixed ten years ago as the basis of the Bank's con-
tribution was no longer adequate. It was decided to replace
it by a sliding scale based upon salaries, so that hereafter
the contribution made by the Bank on behalf of each officer
will bear a direct relation to the amount of the pension to
be provided for him. Should the cost of living fall and the
general level of salaries be lowered, the Bank's contributions
■wnll be lowered to a corresponding degree.
Profit and Loss Account.
After making these appropriations we have been able
to carry forward $1,783,979.37, or $356,243.97 more than last
year. In view of the unsettled conditions at present prevail-
ing in the business world, and the fall in prices which on
more than one occasion has threatened to undermine the
security for certain classes of loans, we think it well to carry
a large unappropriated balance in Profit and Loss Account
as a safeguard against unexpected contingencies. Up to the
present we have been extremely fortunate, in that our inter-
est has been negligible in those branches of business most
directly affected by the heavy declines which have taken
place.
Deposits Increase.
The increase in our note circulation is $669,255, an indi-
cation of a large volume of current business, but a very
small proportion of the total, which now stands at $30,716,914.
As business slackens and prices fall we may naturally look
for some reduction in this item. Our deposits stand, as a
whole, at almost the same level as a year ago, the increase
being only a little more than a quarter of a million dollars,
but deposits bearing interest, the most stable part of deposit
business, have increased by the large sum of $43,148,818.
This is a gratifying and remarkable showing, particularly
when considered in the light of the total subscriptions of
customers of this Bank to the various Dominion Government
War Loans, as reported by our branches, namely: —
1915 1st War Loan S 8,142,000
1916 2nd War Loan 18,001,400
1917 3rd War Loan 22,059,500
1917 1st Victory Loan 78.551,670
1918 2nd Victory Loan 104,474,950
1919 3rd Victory Loan 90,076,535
$321,306,055
Notwithstanding the tremendous drain upon the deposits
of this Bank which these huge subscriptions involved, we feel
proud of the aid afforded by our customers to the Govern-
ment in its war financing. Courage and foresight were
needed by our branch managers when they saw their cher-
ished and hard-earned deposits, gathered over a long series
of years, melt away almost overnight, but the fact that the
deposits of the Canadian public in this and all other banks
28
THE MONETARY TIMES
Volume 6B
are now double what they were at the outbreak of the war
justifies the support g^iven to the Government in its loan
campaigns, even from a narrow and selfish point of view, to
say nothing of that of the national welfare.
Decreased Government Balances.
On the other hand, our deposits not bearing interest have
decreased by $42,875,453, an amount almost equal to the
increase in our interest-bearing deposits. This is more than
accounted for by the decrease in Dominion Government bal-
ances, which a year ago included a large part of the pro-
ceed.s of the last Victory Loan. It must also be remembered
that both the demand for money and the restraint on the
further inflation of credit which we have endeavored to exer-
cise tend to decrease the balances carried by business houses
and large commercial companies in their current accounts.
Another cause which has militated against an increase in
deposits has been the slow marketing of last year's grain.
This tends also to keep up loans; for if the farmer does not
pay his debts, the retailer is unable to pay the wholesaler,
and the wholesaler must lean on the manufacturer. All
along the line they will borrow from their bankers to the
fullest extent possible.
Grain and a Falling Market.
It is regrettable that the farmer, in this and other coun-
tries, should be counselled to hold his grain on a market
which has fallen very rapidly since the time of harvest and
has every appearance of continuing to do so in sympathy
with the general trend of business. It is obviously a highly
risky and unprofitable proceeding, and likely to end in in-
ci-easing class bitterness. Unaware of the real causes that
goveiTi the decline in prices, the farmer will be apt, naturally
enough, to feel that all classes are workirvg against him.
The truth appears to be that, after so many years of rising
prices, it has come to be accepted as an axiom that prices
must continue "o ris-, and consequently in the very year in
which all signs point in a downward direction the unfortunate
farmer feels constrained to hold his grain, unconscious of the
meaning of the signs around him. There is nothing in the
other items of our liabilities which calls for comment, save
that we may say, in passing, that the reduction in accept-
ances under letters of credit no doubt reflects to some extent
the difficulties which at the moment confront the foreign
trade of this country. To this subject we shall refer again
when dealing with the foreign exchange.
Lines of Defense.
During the year our holdings of specie have increased
$566,854 and Dominion notes on hand $3,952,361. There is
no change in the amount deposited in the Central Gold Re-
serves under the heading either of gold coin or of legal
tender notes. Total cash on hand has increased $4,519,215
and stands at 15.14 per cent, of our liabilities to the public,
w^th so-called quick assets at 44.50 per cent, of these liabil-
ities. There has been a reduction in our investments and
an increase in our loans. The reduction in the former con-
sists of $33,763,822 in Dominion and Provincial Government
securities and of $9,109,916 in British, foreign and colonial
public securities and Canadian municipal securities. In both
cases the reductions are due to the payment of war obliga-
tions by the Dominion and Imperial Goveraments. There has
been aii increase in call and short loans, both in Canada and
elsewhere, the increase in the former case being merely a
nominal one. In a time of uncertainty and instability such
as the present, it is well to strengthen all our lines of de-
fense, and in the case of loans in New York, the principal
call monev market of this continent, this has occasioned less
sacrifice of profit than is usual, as rates throughout the vear
have ruled at a high level for that market.
A Commanding Position.
This bank still holds a commanding position in the de-
velopment of Canadian trade and commerce, its current mer-
cantile loans in Canada amounting to the large sum of
$231,114,772, or $17,925,602 more than a year ago. Similar
loans elsewhere have also increased by $1,924,956. The other
items of assets show little change, except Bank Premises
Account, which has increased $758,086 during the year, our
principal outlays in this connection being on premises for our
foreign brandies. Owing to the favorable position of the
foreign exchanges, we have been able to secure premises in
Rio de Janeiro, Jamaica, Trinidad and Barbados at a very
reasonable cost, and our office in Rio de Janeiro will be
situated in the heart of the financial and business district of
that important city. There has been an increase in our total
assets of $1,116,418, a comparatively trifling amount.
Foreign Branches.
In addressing you a year ago we pointed out that up
till then we had been occupied with the promising openings
for new branches in Canada, but that we hoped soon to give
some attention to foreign fields. The policy we have followed
in this respect has been one of caution, slow but sure, and
we think that our judgment has been vindicated by the course
of events, especially the unsettled financial conditions now
prevailing in Cuba and South America. Our branch at
Havana was the first to oe opened, and we are well satisfied
W'ith the progress so far made and with our prospects for
the future. Kingston, Jamaica, came next in point of time,
and there, too, our business shows excellent prospects. Our
office was not opened at. Bridgetown, Barbados, until after
the close of the bank's year, -while in Rio de Janeiro and
Port of Spain, Trinidad, although our managers and their
staff ai-e now on the spot, we have not yet opened for busi-
ness. We believe, however, that our outlook in all these
places is bright.
.\n Increased Staff.
Keeping pace with the growth of the bank's business,
there has been a steady increase in the staff, partly through
the appointment to the permanent staff of men and women
who had served us well during the war and whom we have
found suitable. It was thought that on the return of our
men from overseas most of those on the temporary staff
would have to give way to permit their reinstatement, but
we are pleased that the growth of our business has made it
possible for us to adopt the policy we have outlined. An
increase of thirty-four in the number of branches also ac-
counts to some extent for the increased staff.
New York Exchange.
Probably at no time in the history of this country have
questions connected with the foreign exchanges occupied so
prominent a place in the public mind as during the past year.
The closeness of our relations with the great English-speak-
ing nation to the south of us has made the prevailing high
premium on New York exchange a matter of moment to
a very large number of Canadians. It has come before them
not only as vitally affecting importers or exporters dealing
with the United States, but also, among other things, as hav-
ing a direct bearing on many investments which they hold
or desire to buy or sell, and even as calling for serious con-
sideration in connection with the cost of a holiday or other
visit to that country. The very technicality of the subject,
the mystery by which in the popular mind the working of the
exchanges is surrounded, only serves to deepen the interest
felt in it. In an endeavor to throw some light upon it,
especially as connected with the prevailing high premium for
New York funds, we issued during the year a series of ad-
vertisements dealing in as simple a manner as possible with
some of the underlying elementary principles. These at-
tracted widespread attention and were subsequently reprinted
in the form of a small brochure for general distribution.
The subject has, of course, many bearings and can be dis-
cussed from many points of view. As an instance we may
point out that the premium on New Y'ork funds is an assist-
ance to such of our exports as come into competition in the
markets of the world with similar goods from the United
States. 'To the extent of the premium, the Canadian pro-
ducer can accept a lower price expressed in terms of a
foreign currency, and will still receive as many dollars as
does his competitor in the l/nited States. Dui'ing the closing
part of the year, as you are doubtless aware, the rate of
exchange on New York rose very high, reaching 19% per
cent, on December 21, the highest point on record.
Causes of High Rates.
In addition to the causes usually assigned for this con-
dition, which were commented on in our report last year,
namely, excessive buying from the United States, especially
of luxuries, and the payment of interest on our indebtedness
to that country, the burden of which increases with every
sale of Canadian securities, thei-e are, I believe, one or two
others which have played a considerable part in the recent
rise. One of these is speculation on the stock exchanges,
which has been so prevalent in some parts of Canada. When
the stocks speculated in are those dealt in on the New York
market, calls for margins have to be responded to instantly,
and the sudden demand thus created for New York funds
has on several occasions been the cause of a sharp advance
in rates. There are also at present large sums of money,
belonging to banks and wealthy corporations in the LTnited
States, on deposit in the Canadian banks, awaiting a favor-
able exchange rate, and there has been a demand for the
transfer of a large part of these in connection with the
JanuE.ry 14, 1921
THE MONETARY TIMES
29
preparation of financial statements and other end-of-the-year
requirements.
Not Canada Alone.
It may, perhaps, be some consolation to reflect that Can-
ada is not alone amons the countries of the world in having
to seek the solution of an exchange problem vitally affecting
her trade. There are other parts of the British Empire with
problems of a similar nature, but even more serious. Quite
recently Austi'alian banks have declined to remit in London
funds for bills sent to Australia for collection or to negotiate
commercial bills on Australia in London. The reason is a
shortage of London funds, said to have arisen as a result
of the suspension of the system of Government purchase and
sale of the Australian wool clip. The old machinery for
handling the wool has not yet been restored, and in the mean-
time some difficulty has occurred in financing Australian im-
ports. It is hoped that the situation will be relieved before
long when exports of Australian wheat, wool and meats go
forward. The situation in India, New Zealand and South
Afi'ica is of a somewhat similar character, but not so pro-
nounced.
Foreign Trade and Finance.
It is unfortunate that these exchange difficulties should
arise just at the time when strong eff'orts were being made
to extend the foreign trade of Canada. Undoubtedly the
situation as regards foreign trade is a most difficult one at
the present time, not only because of exchange questions but
also because of the instability of the financial situation in
many foreign countries. The collapse of sugar prices in
Cuba and elsewhere is one instance of this, and in a period
of falling prices all over the world it is admittedly a most
difficult matter to extend foreign trade. Nor is the problem
rendered any more easy of solution by the high level in
Canada of all costs of production, including wages. As
pointed out recently by a high authority in England, "only
the country in which prices are compai-atively low can have
an export balance in its favor." It is to bo feared, therefore,
that until some readjustment of the situation takes place,
there can be little probability of any material extension of
our trade abroad.
I am not among the number of those who consider that
there is need of a central institution, or bank of rediscount,
for the purpose of financing extensions of foreign trade. In
my view, the facilities which are now available to the banks
under the provisions of the Finance Act of 1914 are amply
sufficient for all that is required, and while primarily a war
measure the principles embodied in it may well serve us in
times of peace.
Government Ownership.
The important experiment has recently been tried by the
Dominion Government of placing the martagement of the
publicly-owned railway lines in Canada in the hands of a
corporation, the ownership and control of which reside in the
Government. The experiment Is an interesting one, and bids
fair to determine the feasibility of successfully carrying on
the business of a great corporation under Government ownei'-
ship. There have been many obstacles to overcome at the
start, and the traffic conditions of the year have not facili-
tated the task of those in charge, but it is only fair that
they should be given full opportunity to demonstrate their
ability to carry on the enterprise and to make the experiment
a success.
Hopeful Outlook.
The year we have just passed through has been one of
surprises. At its commencement the tide of rising prices
seemed unchecked, and the idea that a rapid fall was immi-
nent was considered altogether preposterous. Yet this is
exactly what has happened. Once again the seller is having
to seek the buyer, instead of being besought by him. Prob-
ably one of the principal obstacles at the moment to the re-
establishment of business on a more normal basis is the in-
stability which prices have manifested during recent months.
This condition, however, cannot be of long duration, and we
may hope that before the winter has run its course it may
be a thing of the past. Meanwhile we repeat once again what
we have so often urged, that the whole world must aim to
work hard and avoid extravagance if the damage caused to
both property and credit by the late war is to be i-epaired.
The President then said: —
President's Address.
The year has been as full of highly impoi-tant events as
other recent years, but while much that has happened is very
distressful indeed, many of our experiences have been natural
and remedial even if disagreeable. War and famine are still
present, although in a lessened degree, but assassination and
other forms of murder, by men associated for that purpose,
have grown to alarming proportions. As against these bad
conditions there have been fewer strikes and some improve-
ment in the attitude and in the efficiency of workers gen-
erally. It must also be a source of genuine satisfaction to
all fair-minded people that we are now fully entered upon
that adjustment of prices, both for commodities and labor,
upon the reasonable settlement of which all hope for our
future happiness and prosperity rests.
The Strain on Credit.
A year ago we were still in the full tide of high prices,
high wages, supplies unequal to the demand, inefficient labor,
inefficient transportation, reckless spending and all the other
concomitants of a world-wide inffation, based not on indus-
trial enterprise, but on the creation of so-called wealth from
the evidences of debt issued by Governments living beyond
their moans. Warnings that continuance meant ruin were
not wanting, but they met with little more i-esponse than
warnings usually do. There was widespread unrest, as labor
did not remain satisfied with any strike adjustment which
immediately met ^igher prices for commodities. Bankers
found it impossible to grant credits which were steadily made
larger by two proportions, larger quantities and higher
prices. Thus, with the eff'orts of Governments to economize,
came the lessening of the stream from which deposits are
derived, and hence a curtailment of bank credits.
The Effect.
This seriously affected the stock markets in the latter
part of 1919, and as bank rates in Gi-eat Britain and the
United States began to rise and the collapse in raw silk
took place in Japan, other commodities began to follow, and
raw silk, rubbei-, hides, sugar, cotton, manufactured textiles,
clothing, boots and shoes, field products and meat in certain
forms, one by one, have had declines in price, often sensa-
tional beyond anything in recent years.
Our Foreign Trade.
Reviewing as usual our own foreign trade, we find the
total of exports and imports for 1920 to be $2,351,174,000, as
compared with revised figures for 1919 of $2,188,471,000, and
for 1918 of $2,549,681,000. Unfortunately the increase over
1919 is almost entirely in imports, so that the increase in
volume, far from being gratifying, is distinctly the reverse.
With a slightly larger total of exports, we imported nearly
150 millions more than in 1919. Thus the excess of exports
fell to the lowest point reached in the last four years. The
fiscal year ends in March, but the unfortunate tendency of
our foreign trade is much more evident when we compare
the six months' period ending in September. During that
period in 1919 our surplus of exports was $151,037,000, while
in 1920 we have actually imported $151,145,000 more than
we have exported, a change for the worse of over 300 millions
and a complete reversal of our trade position. The position
of our exports for the fiscal year, taken alone, is quite satis-
factory. During the war our exports were swollen by the
item of explosives, but this has now been reduced to small
figures. It amounted to 386 millions in 1918, to 251 millions
in 1919, and to only 12 millions in 1920; so that to keep our
exports from diminishing we had to find new merchandise
to export in 1920 amounting to about 240 millions, and we
actually did so to the value of about 257 millions. The in-
creases under the general headings are as follows: grain,
flour and all vegetable products (except chemicals, fibres and
wood)', 127 millions; animals and their products (except
chemicals and fibres), 69 millions; fibres and textiles, 6 rnil-
lions; wood and wood products and paper, 59 millions; ships,
28 millions. Against this we have important declines in
copper, nickel, gold, silver and other metals and metallic
products of about 25 millions. In the six months' period end-
ing Septembei-, we have, however, a great change. In grains,
flour, etc., we have a loss of 45 millions; in animals and their
products, 53 millions; in fibres, etc., 3 millions; in various
other items, 15 millions; while in wood, paper, etc., there is
a gain of 63 millions, and in iron, other metals and non-
metallc minerals, there is a gain of 13 millions. The total
shows a falling off" of 40 millions.
Increase in Imports.
It is in our imports that we have exhibited a most un-
fortunate lack of appreciation of individual and national re-
sponsibility. Our imports for the fiscal year ending in March
were 145 millions larger than in 1919, but since one item
connected with the war, articles imported for the Army and
Navy, amounting in 1919 to 50 millions, has practically dis-
appeared, we have gone wrong to the extent of nearly 200
30
THE MONETARY TIMES
Volume 66.
millions. The excess of 83 millions in vegetable products
covers such items as distilled bevei-ages, 7 millions; fruits,
11 millions; rubber, 5 millions; sugar, 34 millions; tea, coffee,
etc., 12 millions. The excess of animals and their products
is 53 millions, of which the large items are: furs, hides,
leather, etc., 30 millions, and meat, 16 millions. The excess
in fibres, textiles, etc., is 53 millions, of which the large
items are: cottons, 14 millions; silks, 11 millions; wool and
its products, 23 millions. In the various forms of machinery
and material coming under the heading of iron and its pro-
ducts, there are large increases and large decreases in indi-
vidual items, the net result being an increase of less than
5 millions. In coal products there is a decrease of 16 mil-
lions. The whole result is bad, but it is trifling when com-
pared with the six months' period ending in September. For
this half year, in which our exports declined under each gen-
eral head except wood, and metals and other minerals, we
actually imported 152 millions' worth of merchandise in
excess of our exports. Except in the one item of animals
and their products, there are increases of from nearly 50 to
over 100 per cent, under all general headings.
Exports to Great Britain.
The excess of exports to Great Britain, which in 1918
was as high as 779 millions, was in the fiscal year 1920,
370 millions, still a very satisfactory figure. For the six
months' period, however, it fell from 236 millions in 1919 to
28 millions in 1920. The excess of imports from the United
States for the fiscal year was 300 millions, against 272 mil-
lions in 1919. For the six months' period it was 210 millions,
against 135 millions in 1919. When we look at the third set
of figures now supplied by the Government, that is, from
September, 1919, to September, 1920, the full force of our
extravagance is evident. In that period we exported less
by 23 millions than in the previous twelve months, and we
actually imported 440 millions more.
Fatuous Extravagance.
It is painfully evident, however, that we waste our breath
by setting out these figures year after year. Nothing but
inability to buy will check such fatuous extravagance. Is
it to be wondered at that people coming to Canada from
Great Britain are shocked and profoundly astonished at such
lavish expenditure of money at a time when the world is so
full of real trouble?
The New United States Tariff.
If we turn to the figures for our foreign trade we find
that our exports consisted in value of 639 millions in manu-
factured articles and 648 millions in foodstuffs. These food-
stuffs were shipped to Great Britain to the extent of 368
millions and to the United States to the extent of 134 mil-
lions. Foodstuffs thus form a most important part of our
power to pay for imports of 801 millions from the United
States, of which, by the way, 126 millions represent food-
stuffs bought by us from them. Trade between countries,
however much confused with foreign exchange and postponed
settlements by sales of securities, is a matter of exchanging
merchandise. How could we have imagined, therefore, that
the United States, the creditor nation of the world at the
moment, while awaiting a revision of their tariff looking to
higher protection, would pass in Congress a bill placing an
embargo for ten months upon foodstuffs shipped by Canada
and other countries, all of whom are doubtless depending on
these products to pay for the products thev are buying from
the United States? These are the days of embargoes, tariff
revisions and newly devised schemes to preserve prices, which
are doomed to read.iustment, but we can only hope that the
Senate will not approve of such unfriendly and destructive
legislation. It is evident, in view of the present relations
of the American and the Canadian dollar, that our rejoinder
must be to put an end to an equal amount of purchases from
the United States.
The Cattle Embargo.
Reflection on the markets for our exports brings up the
question as to how long the British embargo on Canadian
cattle is to last. For about thirty years, during which time
Great Britain has been supposed to be a free-trade country,
our live cattle have been excluded from the British market,
unless immediately slaughtered, on the pretext of the neces-
sity of keeping British herds free from disease. No proof
of any danger from our cattle has been shown, and it is
generally admitted that the embargo is simply a case of
extreme protection for British cattle breeders against the
interests of the meat consumers of Great Britain, and par-
ticularly against the business interests of about 40,000
British butchers who wish it removed. May we not hope
that in this day, when the problem of feeding the people
of Great Britain is so difficult, such an irritating obstacle
may be removed ? If the British meat consumer understands
that there is nothing whatever the matter with Canadian
live stock as such, and still desires this protection for cattle
breeders at home, we, of course, have nothing to say, but
we should like to feel sure that he does understand.
Our Field Crops.
The value of the field crops of Canada for 1920 is esti-
mated by the Dominion Bureau of Statistics at $1,636,664,000,
as against revised figures for 1919 of .$1,452,437,000. An im-
portant change has been made in the preparation of this
report. Hitherto it has been prepared by the Bureau for
Canada as a whole. Now it has the benefit of consultation
with each of the nine Provincial Departments of Agriculture.
The prices also are taken from those current in the respective
localities, and in view of the falling tendency at present, the
total estimate may, therefore, turn out to be too high. The
increase in the estimate of about $184,000,000 is derived from
increases in wheat of $172,000,000, in potatoes of $21,000,000,
in hay and clover of $16,000,000 and in roots of $4,000,000,
with decreases in oats of $10,000,000, in barley of $17,000,000
and in other grains of $2,000,000. We have about 100 million
bushels more wheat than in 1919, so that the accuracy of the
estimate depends much upon the price of this grain. We
have 148 million bushels more of oats, the largest yield on
record, vet the price has fallen so that the money value of
the whole crop is $10,000,000 less than in 1919. On the other
hand, hay and clover, while less in quantity, yield more,
the price for hay being the highest in our history. Saskatch-
ewan, with $412,000,000, and Ontario, with $396,000,000, pro-
vide about one-half of the value of all the field crops in
Canada.
Mineral Production.
From such information as we can obtain, the total value
of the mineral production of Canada for 1920 is probably
$200,000,000. This compares with the great year of 1918,
when the total was $211,301,000, and is well above 1919, when
it fell to $176,686,000, because of the reaction following the
war. In the rebound from this reaction there has been an
increased production of coal, asbestos and other non-metallic
products, and of pig iron and steel, of copper, nickel, zinc
and, in a slight measure, of .gold. There has been a falling
off in silver and lead. The production of coal, asbestos and
zinc has been larger than in any previous year. The prices
of metals, except silver, were well maintained during the
first nine months of the year, and the decline later has not
reduced the average below that of 1919.
The National Debt.
The public debt of the Dominion, which at 31st March,
1919, was estimated as being under $2,000,000,000, is at 30th
November, 1920, eighteen months later, stated to be $2,298,-
784,000, but against this are held certain non-active assets,
consisting chiefly of railway loans and amounting to $284,-
015,000, which were heretofore deducted from the total.
During the fiscal year ending March, 1920, expenditures
chargeable to the war, amounting to $346,612,000, were made,
followed lay only $8,963,000 during the six months ending
30th November, 1920. We may therefore hope that the back
of our direct war expenditure is broken. There is still due
by Great Britain $162,000,000 and by foreign governments
$45,000,000, but the amount due by Great Britain has been
deducted in estimating the net debt. As the hea\'y payments
caused by the war are now nearly at an end, we can, having
regard to established systems of taxation, begin to estimate
our actual position as to debt and our capacity to deal with it.
Sales of Securities.
The sales of Canadian securities for 1920 have, of course,
fallen to lower figures because of the absence of popular
Dominion Government loans in Canada. The figures are as
follows: —
United Great
Security. Amount. Canada. States. Britain.
Government $113,455,500 $39,035,500 $74,420,000
Municipal 58,994,728 49.312,496 9,682,232
R.iilway 96,500,000 96,500,000
Pulilic service corporation.. 11,500,000 200,000 11,300,000
Miscellaneous 38,381,853 16.106,853 22,275,000
Total, 1920 $318,832,081 $104,654,819 $214,177,232
100% 32.82% 67.18%
Comparative figures for 1919 $909,383,728 $699,291,095 $204,987,500 $5,105,133
100% 76.89% 22..54% 57%
We have again been given by a most competent author-
ity an estimate of the amount of our securities held abroad.
These are now estimated at $2,189,000,000 held in Great
Britain and European countries, and $1,441,000,000 held in
the United States. If we calculate the interest on the
Janunry 14, 1921
THE MONETARY TIMES
31
former, which were financed before the war, at 4% per cent.,
and on the latter at 5y2 per cent., the total of our interest
payments would be about $183,000,000 annually. Doubtless
there ai'e securities held abroad which are not included in
this calculation, and the high rates lately paid for loans may
increase the average beyond the rate of 5^^ per cent., so
that the actual amount we have to pay is doubtless midway
between 183 millions and the sum of 190 millions suggested
a year ago.
Shrinkage of Credit.
A year ago the cry in every direction was for more
production and more efficiency in labor, better and less costly
conditions in transportation, and a cessation of Government
boiTowings and of credit inflation. The enormous quantities
of unsold commodities at the present time seem inconsistent
with the cry for greater production at that time, but it is
doubtful if there is any real inconsistency. Except for stocks
of certain commodities held by Governments who continued
to exercise control over trade and did not liquidate these
stocks at the close of the war, it is questionable if there are
more commodities than the world needs for its ordinary com-
fort. The trouble does not arise from over-production, ex-
cept as to luxuries, but from a sudden shrinkage of credit
operations, a vast psychological change in the middlemen
who buy and sell between the producer and the consumer,
and following these factors, and to some extent because of
them, from a sudden falling away of the buying power and
a distinct change in the desire to buy, of the people gener-
ally. From a period of expansion marked by the most ex-
travagant buying ever known, we have entered upon a period
of liquidation. We arc just as bent now on finding a sui'e
bottom as wo were on finding the dizzy top a year ago.
Decline in Prices.
The Monthly Review of the Federal Reserve Bank in
New York at the close of November quotes the decline in
commodity prices from the peak as about 10 to 14 per cent,
in Great Britain, 11 per cent, in Canada, in the United States
various estimates from 14 to 3.'5 per cent., in France 14 per
cent, and in Japan 28 per cent. The decline of the past six
months in the United Slates is said to be more abrupt than
anything since the same period at the close of the Civil War.
While there must have been countless perplexing and grave
problems, often involving totals in money which were enorm-
ous relatively to past experience, it is greatly to the credit
of modern banking in most countries that we have been able
to meet these situations as they have arisen. Embargoes
and moratoriums are still necessary, and the foreign ex-
change difficulties are not always subject to settlement by
a mere premium or discount in the rate.
Cancellation of Orders.
Trade with countries other than distressed Europe has
been threatened with stoppage until bankers devised new-
expedients for bridging difficulties not met with for many
years, if ever before. The stoppage in buying and, what is
much worse and not creditable to modei-n conditions of trade,
the cancellation of orders, have so disturbed the calculations
of manufacturers and merchants that borrowings from the
banks, and by note and bond issues from the public, have
been necessary in the United States on a scale never known
before. The liquidation which has set in will bring about
easier monetary conditions as the natural accompaniment
of less active trade and the decline in prices, and, unfor-
tunately, we can already see that many will be out of em-
ployment during the coming winter.
Unemployment.
In the Utiited States, as usual, movements are more
acute than in Canada, and in some branches of trade, such
as motors atid clothing, employment has fallen as much as
50 to 75 per cent. On the whole, what with some trades in
a better condition and with labor needed in farming and lum-
bering, heretofore very short of workmen, the lessening of
emplojTiient is not very prevalent as yet. The unemployed
of course congregate in the cities and raise grave questions
which had better be met by public works, where labor is
given in exchange for pay, than by doles which tend to break
down the individual effort on which our society is based.
Immigration Increases.
It is unfortunate, although quite natural, that at such a
moment immigration shows its first great movement since
the war. In 1913 a trifle over 400,000 immigrants came to
Canada and in 1914 about 385,000, so that, but for the war,
1914 would clearly have been a record year. During the war
the immigration was nominal, only 50,000 to 75,000 annually,
but in 1920 the figures reached about 120,000, with the
promise of a much more active movement as soon as rates
are lower and passages more easily obtained. In 1913 irn-
migrants came from the following sources: Great Britain
150,000, United States 139,000, and all other countries 113,-
000. In 1920 the proportions were 59, 49 and 8. In both
years the immigrants spread themselves reasonably well
over Canada, Ontario, however, receiving twice as many as
any other province. The proportion of immigrants from the
United States who are farmers is about the same as before
the war, and doubtless many others from that country are
land seekers, but the proportion of farmers or fairm workers
from other countries, including Great Britain, is much
smaller than before the war. We must hope that the
present readjustment going on throughout the world will
•increase the number of land seekers, because although we
must prevent undue immigration while our own people want
work we shall always desire as many as possible to go on
the land for, a living.
The Soldier Farmer.
In connection with land settlement and post-war work
for our soldiers, a recent report of the Soldier Settlement
Board is encouraging. The plan provides for loans for buy-
ing land up to $5,000, or 90 per cent, of the value, in each
case, amortized over 25 years on the basis of 5 per cent,
interest per annum, and for loans up to $2,000 for stock or
equipment, payable in six amortized payments on the same
interest basis, and of $1,000 for pei-manent improvements
payable in the same manner as the land purchase. Over
57,000 soldiers have applied under the plan, over 41,000 have
qualified and 20,000 are already on the land, while over 1,000
are in training with farmers. To settle these 20,000, slightly
under 80 million dollars has been necessary, as against a pos-
sible 160 millions under the Act. Soldiers have made first
payments amounting to four millions, while crops have al-
ready enabled further payments of nearly two millions to
be made. In the Prairie Provinces alone, the soldier farmers
have produced about 20 million bushels of grain.
The care taken in estimating the qualifications of each
applicant for successful farming, in selecting the land, in
buying stock and implements, the latter at wholesale prices,
in counselling and aiding in many ways those who have not
yet made good — all suggest an admirable effort to carry out
a plan of land settlement, the importance of which reaches
far beyond the mere aid to the returned soldier, although
that is the prime consideration. Where there are applicants
who cannot make the initial payment, the various, bodies aid-
ing distressed soldiers are appealed to, and, of course, there
are failures after all precautions have been taken. In 150
cases, involving an investment by the Government of $575,000,
only about $10,000 was lost. The report closes with sugges-
tions regarding land settlement generally, which it is hoped
will have the consideration due to such an important question.
Pensions to Soldiers.
Perhaps no new form of national expenditure caused by
the war interests us so widely as the pensions paid to our
soldiers. On the one hand there is an intense desire that
justice be done to those who fought for us, while on the
other hand there is a grave sense of the weight of the obliga-
tion falling upon the new generation to pay such a huge sum
annually, in return for which there is not, directly or in-
directly, any relative production of national wealth. At the
end of' 1919 there were 86,429 pensions being paid, at a cost
of about $1,800,000 monthly. During the year, by the pay-
ment of $5,710,000, pensions were commuted to the extent
of 14,292, and the number of pensions in force at the end of
1920 was 73,278. Further commutations arc expected, bring-
ing the total to about 18,000, on which about $7,200,000 will
have been paid. At the moment our monthly outlay for
pensions is about $2,500,000, but commutations will probably
reduce this to about $1,850,000.
Taxation.
In speaking last year -about the manner of distributing
the taxation necessary to carry our debt and to administer
the Government, we expressed the opinion that if the annual
payments are obtained by reasonably fair taxation, so levied
that the taxes do not become a cause of restraining our
industries, we shall not fail to win through, but, to accom-
plish this, much study of the subject is necessary. It must
be admitted that the war has imposed upon Governments the
necessity for collecting an amount of taxes beyond any past
experience, and it should be evident that the total required
can onlv be obtained by contributions on some scale from
practically the whole body of the people. It is quite true
that regard must be had to the capacity of the indi"Mual
82
THE MONETARY TIMES
Volume 66.
to pay, but in levying; super-taxes no folly can be greater
than to overlook the effect of excessive taxation on our in-
dustrial activities, not only as to future growth, but as to
the present power to give employment to the wage-earner.
We do not hesitate to say, now that the war is over, that
some of the present forms of Dominion taxation, while jus-
tifiable during the war period and the period immediately
succeeding it, are in danger of becoming destructive of
enterprise and perilous to our future if not altered. As the
forms of taxation to which I shall allude are similar to those
of other countries in which the same evil results are appar-
ent, and in which the tide of opposition is rising rapidly, I
trust my remarks will not be regarded as a criticism of our
Government, whose tasks during the war and since have been
most difficult and onerous. We must suppose that these
forms of taxation are experiments which are subject to
speedy change if found to be too burdensome and unfair. '
Tax on Sales.
As against the "luxury" taxes now happily at an end,
we have steadily urged a turnover tax of one per cent, on
sales of commodities. We are aware that criticism, only
however regarding certain details, of this form of tax have
been made in the Tentative Report of the Tax Committee of
the National Industrial Conference Board of New York, but
these have been answered by the Chairman of the Business
Men's National Tax Commiti;ee. One of the arguments made
in the United States against it is that any tax which bears
in the same rate upon the small earner as upon the large
is unfair. But this is accompanied by the belief that a turn-
over tax would provide such a revenue as to displace the
excess profits tax. I believe it would only provide a sub-
stratum of tax revenue, in which it is true that all would
join alike, paying in precise proportion to their expenditures
for commodities, but the manner in which those who have
larger incomes would be taxed through the income tax would
provide for that difference in treatment which modern taxa-
tion recognizes. A small tax on the sales of commodities and
real property in Canada would hurt so little, would be so
fair, would be so easily collected, and w^ould produce such a
very large sum, that to fail to levy it seems excusable only
if it can be shown to be impracticable.
Surplus Profits Tax.
We are levying heavy surplus profits taxes, and many
well-intentioned people think that we are justly punishing
the so-called profiteer, but we ai'e really killing the goose
that lays the golden egg. Wlien he can do so, he doubtless
passes the tax on to the consumer, and escapes punishment
himself, and the tax thus becomes a boomerang as far as
the public are concerned. If we clearly know what we mean
by a profiteer and can find him, let us punish him in such
manner that the penalty imposed cannot be passed on to the
ultimate buyer. But in ordinary cases, which affect by far
the greater part of the business community, we are taking
from enterprise the profit with which further enterprise
would be created. It is from the accumulated profits of a
business that growth both of plant and scope of operations
mostly becomes possible. Wliat do we think will happen if
we steadily take such a large share of that profit a\vay? It
will be said that some concerns make too much money. But,
as we argued a year ago, that should be demonstrated by the
relation not of profits to capital but of profits to turnover,
measured again by the proportion of possible turnover to
capital. The manufacturer who turns his capital over many
times, serving the public for a trifling profit on each sale,
but making a large return on his capital because of his skill
and activity, should surely not be punished by excessive taxa-
tion for being an excellent servant to the people. The tax
is universally admitted to be unscientific and will do incalcul-
able damage if continued. It was justified only by war con-
ditions and only for the period of their duration.
The Income Surtax.
The surtax features of the income tax, w-hen carried to
the extreme percentages now in efi'ect, are little less unwise
and unfair than the excess profits tax. Those w^ho are large
.shareholders in business enterprises should be ready to take
up new share issues in such enterprises, as extensions may
prove necessary. Taxation which first takes a large share
of the profits from the company, and then a large share of
the dividends of the same company because they happen to
be part of a large private income, may seem to be sound
policy to many, but if what we seek is the general good, it
is deadly in its eff'ects upon business enterprise and industry.
I believe every good citizen in Canada wishes to pay for
part of the cost of the war. He only desires that his ability
to pay shall be regarded. A tax on the turnover of all busi-
ness transactions would punish no one, and yet would mean
the reaching of a most important sub-stratum of the national
income, in the creating of which everybody has joined. Upon
real luxuries an excise tax might well be placed without
resulting injury to trade. The articles selected should mani-
festly be luxuries in the strict sense of the term and clearly
recognized as such by the general public.
Profits and Taxes.
We are at the moment having illustrations both of the
injustice and of the unreliability, as a form of Government
income, of the excess profits tax in Canada and the United
States. Business men who in a time of high prices would
not regard whatever value they might put upon merchandise
in stock at the close of their financial year as anything but
a pro forma method of closing their books, and who would
keep large balances in profit and loss account as a con-
tingency against a fall in prices, are forced to fix a price
for such merchandise, and also to fix, to the satisfaction of
the Government, the reserves to be kept against such re-
valuation. As a result, in the United States at the moment,
countless firms who in the great fall in commodity prices
have lost a large share of all that has been made in several
past years, look in vain for that so-called "excess profit"
which the Government exacted from them, and I fear that
there are at least a considerable number of business estab-
lishments in Canada in the same predicament. The Govern-
ment is to be a partner in the business when profits are
made, but not when losses are made. It is obvious that such
a form of revenue must be subject to too great contingencies
to be reliable. In the interest of all we must find a system
of taxation which will do the least possible mischief to
enterprise, instead of making men unwilling to take new
risks because the Government seizes so much of the results
when there are any and does not share either the risk or
the loss.
Increase National Income.
While we must for the time being levy enough taxes
in some form to pay our interest charges, and to make, as
we hope, some steady if slow reduction of the national debt,
we should always bear in mind that it is only by the growth
of our national income that we can expect again to reach
a time when taxes will not b'e a drag upon our prosperity.
We need more people upon the land, but we need more
industries as well. We pay away yearly vast sums for
iinports, many of which should be unnecessary.
We have untouched stores of raw material for many
kinds of manufacturing, the non-use of which is even more
serious to Canada from the point of view of national finance
than unploughed land. We export food by which our foreign
debts ai'e partb' paid, but we import what we should make
ourselves and thus create foreign debt. The present high
rate of exchange on New York is the concrete expression of
this debt, not only of that being created to-day. but in the
foi-m of annual interest payments, of all the foreign debt
we have created in the past.
Research Work Imperative.
We have iron ores in plenty, but we do not spend
enough on research to ascertain their status in relation to
other ores in the United States on which we steadily depend.
We have about 15 per cent, of the coal areas of the world,
so far as such areas are accurately known. It may be that
science cannot remove impurities and reassemble the coal
so as to make transportation charges possible, and thus
relieve Ontario of its gi-eat drawback, and the nation of its
vast expenditure for the importation of this article, but
research should be persistent until we are assured that such
is the case. We have lately developed manufacturing pro-
cesses in which chemistry is the main feature and others
dependent on cheap water power, and through these the
triple benefit comes to us of giving employment, of enlarg-
ing the market for those who sell food and the other neces-
saries of life, and of offsetting or lessening by the selling
value of the home-created product the cost of those imports
which are the main cause if our present difficulties. We are
very glad indeed that our Dominion and Provincial Govern-
ments all spend large sums of money in educational and
other ways, to aid agricultui-e. The Dominion Government
and some of the provinces also do something in the way of
research for other industries, but we have come to a juncture
where, along with the ordinary desire for progress, cornes
the heavy pressure of national debt which can only be re-
lieved by increased production. For this we need research
in countless directions, and in addition to what is not being
done, I hope liberal aid will be given to all of our univer-
sities and that the scope of our Government research work
may be enlarged.
JanuEi-y 14. i;»21
THE MONETARY TIMES
32a
Trade with West Indies.
A very interesting convention took place in May and
June, at which representatives of the West Indies and
British Guiana met the Canadian Government in an effort
to increase our trade with each other and improve our means
of intercommunication. It is said that this is the first time
that representatives of all the islands and of the adjacent
mainland have met together, and it is gratifying to record
that these colonies, which form in one sense a unit of the
Empire, came together to discuss Imperial questions with
Canada. As a result, an agreement between Canada and
some of the West Indian group came into force on 2nd June,
and a further agreement, which included the remaining mem-
bers, was made on 18th June, subject to ratification by all
the parties thereto, and in which all of the delegates present
at the conference concurred. These agreements are based
upon an increase of the mutual preference now granted, an
enlargement of the list of products to which the preference
extends, and on co-operation in procuring and maintaining
better steamship transportation, and, if possible, better cable
communication. If we consider the adjacency of the United
States to the West Indies and the special relations to the
latter of the great fruit company with its lines of steamers,
we can readily understand that our hope of a large and
reasonably quick development of trade with these parts of
the Empire depends on the steamship and cable services we
are able to create and maintain. Nothing but the best both
in kind and in administration will be of much use. In addi-
tion to this West Indian Convention, we had the Imperial
Press Conference and the Congress of the Chambers of Com-
merce of the Empire. We cannot doubt that such meetings
of men important in Imperial affairs will both widen our
outlook and strengthen our determination that the British
people shall merit the leadership in the world's advancement.
.\ Year Book.
Over thirty years ago this Bank began the. at that time,
quite unusual practice of presenting at the annual meeting,
in the addresses of the President and the General Manager,
a review of the industrial conditions of the area in which
the Bank was interested. As this widened from Ontario to
other parts of Canada, then to the whole Dominion and to
various parts of the United States, later to Great Britain
and Newfoundland, and now to the West Indies and South
America, it has been necessary to change the manner of
imparting this information to our shareholders and to the
public. Until 1913 the effort to incorporate it directly in the
addresses was continued. Then it was decided to present it
in what has been called a Review of Business Conditions, in
the extended form in which it reaches us from the Super-
intendents and other officers who make these annual reports
to Head Office, and this has been supplied with the annual
report to the shareholders and the public. About four years
ago the Bank found it desirable to establish its Monthly
Commercial Letter, which has made for itself a very exten-
sive circulation, and it has now been concluded to publish as
early as possible after the annual meeting a Year Book, in
which the Review of Business Conditions, now growTi to
larger proportions than ever, will appear, together with
material of special interest gathered from the Monthly Com-
mercial Letter and from other soui'ces.
The Sin of Extravagance.
Among the lights and shadows of the world there are
at the moment too many shadows to warrant anything but
anxious care. You have heard from the General Manager
the results of the best year the Bank has ever had, and thus
far we have not much evidence of a decline in the spending
habits of our people or that hard times are ahead of us. We
know, however, that here as elsewhere all prices, whether
of commodities or of labor, must be reduced to a more
reasonable basis, and the effect of the world's lower price
for farm products is already plain to all. When this read-
justment has reached the- retail shop and a new basis of
values has been generally accepted, a genuine prosperity will
arise throughout the world in which we shall have a large
share. We .shall merit and we shall secure that prosperity
in proportion to our good sense in realizing now that our
particular sin is extravagant expenditure and willingness to
incur debt.
The I'eport was adopted unanimously. Messrs. T. Harry
Webb, C.A.. and Douglas Dewar, C.A., were appointed
auditors, and the usual votes of thanks to the directors and
staff were passed. The meeting then adjourned.
ESSEX % UNION I
INSURANCE COMPANY. LIMITED g
FOR REINSURANCE:
a
Head Office : ■
9 & 10, GEORGE YARD, LOMBARD ST., LONDON, E.C.3 ■
Tclcphn
AVBSIE 7.i6.S Cl-
" Security First "
EXCELSIOR
INSURANCE LI pE COMPANY
HEAD OFFICE-
^i?^^|j^jyi A^^l EXCELSIOR LIFE BUILDING
^#4^
Adelaide and To
TORONTO - CANADA
¥F you are not younger than 22 years
* or not older than 41 years and in good
health, send for particulars of our famous
Money-Back Policy
Please state date of birth.
The Travellers Life
Assurance Company of Canada
MONTREAL, QUE.
Hon. GEORGE P. GRAHAM. Pre^i.lenl.
British Northwestern Fire
Insurance Company
Head Office
TORONTO
Hon. Edward Brown. J. H. Riddel. E. C, O. Johnso.n.
President. Managing Director. Asst. Manager.
F. K. Foster.
Winnipeg. General Agent for Western Provinces.
The policies of this Company are guaranteed by Eagle,
Star and British Dominions Insurance Company, Limited, ol*
London. England,
ASSETS EXCEED S93,000.000
.4pp/ica(ions for agencies arc cori) iaU-^ invited .
32b
THE MONETARY TIMES
Volume 66.
PROTESTS REGULATION OF INSURANCE COM-
MISSIONS
A. H. C. Carson Points Out That Commissions' Increase Ha»
Been More than Offset by lieductions in Other Expenses
IN a protest to the Ontario government regarding the pro.
posal to limit fire insurance agents' commissions, A. H. C.
Carson, president of the London Mutual Fire Insurance
Company, says: —
"To carry any weight, such a protest must be backed by
strong argument. I would, therefore, beg your attention to
the following comparative figures, taken from the Dominion
Blue Books for the years 1899 and 1919:—
1899. 1919.
Average rate of premium charged by
Canadian companies 1.27 1.12
Average rate of e.xpenses of Canadian
companies 34.41'./'r 40.27' ^
Actual expenses per $100 of insurance
written 43.7c. 45.1c.
Deduct taxes (uncontrollable expenses),
taking London Mutual figures for
purposes of comparison (1899, 59%
of 1.27; 1919, 3.15% of 1.12) 75 3.5
Balance being controllable expenditux-e . . 42.95c. 41.6c.
Average rate of commission, approxi-
mately 15% 20'V
"It would, therefore, appear that the average rate of
premium has been reduced from 1.27 per cent, in 1899 to
1.12 in 1919, or 15 per cent, per $100 in 1919, but that the
cost within the power of the companies to control has been
reduced from 42.95c. in 1899 to 41.6c. in 1919; therefore,
while the rate of commission has increased possibly 5 per
cent., the increase has been accompanied by a decrease in
cost to the public and a decrease in the controllable expense
of the companies. I would respectfully ask you, sir, in what
other business you can find similar results in a comparison
between the years in question.
"The fire insurance business, in common with all others,
has had to contend with increased expenses of evei'y kind
during the past few years, and the fire insurance agent has
had to get an increased commission to enable him to live in
reasonable comfort, and a business which can meet increased
expenses and pay increased commission and still show the
results given in the above comparison is not in need of legis-
lative interference, nor is it being conducted in a manner
detrimental to the public interest.
Would Ruin Agents' Business
"Again, there are many hundreds- — possibly thousands —
of agents in this province who have spent ^he greater part
of a busy and honorable business career in building up a fire
insurance agency business from which they derive a living
income, but from which none, to my knowledge, have ever
amassed riches. Your proposed legislation would have the
immediate effect of reducing the incomes of these men from
twenty to twenty-five per cent. These men all give expert
and conscientious service to the community, and they per-
form an important function in the economic life of the
country. No criticism of their work or their remuneration
has been voiced by the public, and it is not proposed to com-
penaste them in any way for the income of which they will be
deprived. The reason given for this proceeding is the public
interest, but, sir, a gross injustice to a section of the public
can never be in the interest of the public as a whole. If these
men had in any way abused their position or taken advan-
tage of conditions at any time to improperly acquire profit,
some leigslative interference might reasonably be considered,
but I doubt if any class in the community has more faith-
fully endeavored to promote the common good with less profit
to themselves than fire insurance agents. If the government
considers it necessary to perpetrate an injustice on one sec-
tion of the community in the public interest, why not bring-
in legislation reducing the profits of food producers by 20
to 25 per cent., and so materially lower the cost of living.
There is no more logical reason why insurance agents should
be picked out than farmers, and the results to the public,
if farmers were the unfortunates selected, would be infinitely
greater than can possibly be the case with insurance agents.
Commissions on Dwelling-Houses
"Again, particular attention has been directed to the
commisisons paid on dwelling-house business. Of necessity,
commissions on dwelling-house business are larger than those
on mercantile business. Evei-y merchant knows that the cost
of selling low-priced articles is greater proportionately than
the cost of selling high-priced articles, and particularly is
this the case when the low-priced articles turn over slowly.
Dwelling-house business commands the lowest rates of pre-
mium, and it almost invariably comes up for renewal in
three-year periods. It is also the class of business most diffi-
cult to acquire. Why this should be so it is hard to say, but
any fire insurance manager will bear me out as regards the
difficulty of obtaining dwelling-house business. A certain
number of our more wealthy citizfens may possibly take suf-
ficient intei-est in their dwelling and contents to make en-
quiries regarding fire insurance, but even with them the
initial insurance is frequently, and the renewal insurance
almost invariably, left to the agent or broker with whom
they deal, while the middle and working classes, whose pro-
perty constitutes possibly 95 per cent, in number of the total
dwelling-houses, with the exception of such insurance as is
insisted upon by mortgagees, practically never insure without
solicitation, and then only to a ridiculously inadequate ex-
tent. This class of fire insurance resembles in many respects
industrial life insurance, the amount of canvassing necessary,
the difficulty in making collections, and the hard and con-
stant work entailed in all weathers and at all hours of the
day and night allying the two classes of insurance very
closely. The Toronto agent who, by house-to-house canvass,
writes and collects $100 of premiums, has well earned $25,
and if, owing to reduced commissions, this branch of the
business is neglected, the inevitable result will be an appre-
ciable increase in the number of fires where no insurance
is carried. This is not in the public interest.
Effect on Number in Business
"Again, you will probably argue that a reduction in
commission will reduce the number of agents and increase
the average turnover and profit. I do not agree. Insurance
agents, in common with other poor mortals, are subject to
the limitations of time and space, and I doubt if a doubling
of their present turnover with the new commisison rate
would more than give them the equivalent of their present
income, for it would greatly increase their overhead expense
and the bad debts inseparable from the business.
"Again, it is the object and aim of all insurance man-
agers to attract to and i:etain in the business as agents men
of character and ability, and to eliminate as far as possible
agents who do not show a disposition to realize the responsi-
bilities of their position; and there is only one way to attract
the right class of man, and that is by way of adequate com-
pensation. Your proposed bill defeats this object, and is,
therefore, contrary to the public interest.
"In my opinion, the proposed bill is class legislation.
Bolshevistic in its utter disregard for rights of long stand-
ing, savoring of the government control, which, as a war
measure, met with some success, but which has recently been
abolished in the public interest, and contrary to the law of
supply and demand, and consequently foredoomed to ulti-
mate failure, and I trust that saner counsels will yet prevail
and prevent it blotting the page of the Ontario Statute
Book."
In Toronto the courts have decided against the city in
the appeals brought by Wm. Davies, Ltd., and other firms
against the 60 per cent, assessment on their retail stores.
Judge Denton held that the retail stores occupied far more
valuable sites than the factories, hence the 25 per cent,,
assessment on the former and the 60 per cent, on the latter.
January 14, 1921
THE MONETARY TIMES
AGENCY COMMISSIONS
ARE NOT TOO HIGH!
RECENT propaganda published by the instigators
of the proposed legislation to reduce agency com-
missions has not met with any public response.
The insurers of this Province have again and again
expressed their satisfaction with the moderate rates
charged by the Fire Insurance Companies, and which
were not increased during and since the great war.
Furthermore the public realize and appreciate the
splendid services rendered by fire insurance agents —
not only in the careful inspections and consequent im-
provement of their risks, the placing of their insurance
requirements — the convenient system of credit that is
alone carried by the agent — but in the service and ad-
vice that is at all times available during the currency
of their contracts.
THE vague promises made that the proposed reduc-
tion in agency conmiissions may later result in
reduced firo insurance rates is not given credence
by the insuring public. All too skeptical of the results
of any and all of the public investigations into various
matters — held from time to time — the general feeling
exists that the Mastcn commission did not reveal any
abuses in the Fire Insurance business. Therefore any
recommendation made as a result thereof is simply
looked upon as an attempt to do something to justify
the expense incurred to the Province. The whole pro-
po.sal to reduce agency commissions could easily be
classed as silly and absurd were it not for the deter-
mination of the Superintendent of Insurance for Ontario
to bring the Bill before the coming session of the
Legislature.
WHY Fire Insurance Agents — the one class of busi-
ness men who have not and do not profiteer —
should be the first victims of the axe allegedly
swung to cut the high cost of living — is quite beyond
comprehension. It is apparent, however, that the
draftor of the Bill, supported by the Superintendent of
Insurance, and a few companies (obviously for selfish
reasons), are quite prepared to disregard all the rights
of Fire Insurance Agents, and to fight this Bill through
the Legislature. It is class legislation of the worst
kind and as such should be speedily thrown out of the
House by the Government and Opposition combined.
THE Drury Government has always prided itself
upon the absence of camouflage and subterfuge in
all Bills that have been passed to date, and in this
particular case they have a splendid opportunity to
prove their sincei'ity. If the members of the Cabinet
and of the Government honestly feel that Fire Insui'-
ance rates are too high, then legislate a direct reduc-
tion. Compel the companies to reduce present charges
by, say, ten per cent., without the roundabout and fool-
ish idea that a reduction in agency commissions may
later accomplish this result. By so doing they will gain
the approbation of the public without incurring injustice
and hardship to a class of men who have rendered
splendid service to the people of this Province.
THE Superintendent of Insurance in his proposal to
abolish the chief or general agencies in Toronto
has demonstrated his ignorance of the best meth-
ods of sening the public. His idea of substituting
branch offices in lieu thereof would certainly increase
rather than decrease the cost of securing business.
Merchandisers all over this continent have, after costly
experiment, abolished branch offices in favor of
agencies, having found the latter are more conducive
to inci'eased production at gi-eatly reduced costs. In
this respect, reference should be made to the Ford
Motor Car Company, Massey-Harris Company and
many other giant businesses which operate almost ex-
clusively on the agency system.
FIRE Insurance Agents are entitled to all of the
commission at present paid them. Their work
requires long hours and hard and persistent en-
deavor and much work that is not attended with results.
Their business requires a capital investment in many
cases as large as a store business. Any attempt to
reduce their remuneration will drive many of the best
men into other fields, and as a result the large number
of homes in Ontario that are uninsured will be greatly
increased. The public should not be fooled by this Bill,
which we really believe is ultimately to benefit a few
companies rather than the insurers of the Province.
Agents all over Ontario should unite in fighting this Bill to
reduce their Commissions. Interview your local member and
convince him with the iniquity of the proposed legislation
JOHN HENRY COLLIER DURHAM
General Manager
FREDERIC P. WYTHE
Assistant General Manager
Merchants Fire Insurance Company, Toronto
WITH SEVENTY THOUSAND "SATISFIED" POLICY-HOLDERS
IN THE PROVINCE OF ONTARIO
llllllllllllllilllillllllllllllllllllllllllllllHlllllllllllllllllllllllllllllllllllllllllllllllllllllllll
IllilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllWIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIffl
32d
THE MONETARY TIMES
Volume 66.
NOVA SCOTIA LIFE UNDERWRITERS
The Nova Scotia Life Underwriteis' Association held
its annual meeting on January 8 in Halifax. The report of
President Wilson showed the association to have added about
30 per cent, to its membership during the year, and that
important legislation affecting insurance had been enacted
by the local house at the request of the association. The
treasurer's report showed a large increase in receipts and a
very satisfactory year. The officers were elected for 1921
as follows: President, F. G. Taylor, Mutual Life, of New
York; vice-president, G. R. Smith, Great West Life; treas-
urer, H. G. Raymond, Canada Life. Executive — H. S. Crosby,
North American Life; K. Cox, Metropolitan Life; J. T. Wil-
son, Canada Life; S. V. Freeman, Mutual Life, of New York;
C. K. Ives, Sun Life.
BANKER PREDICTS MORE CAREFUL FINANCE
"Our particular sin is extravagant expenditure and
willingness to incur debt." This remark of Sir Edmund
Walker, president of the Canadian Bank of Commerce, made
at the annual meeting of shareholders on Tuesday, came as
the conclusion to a thorough review of business conditions
and political questions as they relate to business. Sir
Edmund diagnosed the condition of Canada. He sees the
germs of sickness, but he has high hope for the patient.
He looks for it to grow steadily sturdier, but only by facing
the facts that dangerous germs of false economics do exist —
that bad and questionable habits of private and public finance
must be replaced by saner habits. As a means to this end
Sir Edmund welcomes the present period of readjustment,
when values are being brought not only to a basis of pro-
ductive costs but of reproduction costs.
Sir Edmund sees an improvement coming only because
of dire necessity. "Nothing but inability to buy will check
such fatuous extravagance." There is a bright side, fortu-
nately, to offset this decreased margin of export excess
over imports. It is the fact of increased value of field crops,
mineral production well in excess of that of 1919, and the
fact that war expenditures have virtually ceased. Sir
Edmund makes it clear that Canada can, if Canadians will
speedily get the important excess of export over import more
nearly to the old ratio.
Among the statistics of universal interest given in Sir
Edmund's address are those of Canadian securities held
abroad. These he estimates at $2,189,000,000 held in Great
Britain and Europe, and $1,441,000,000 held in the United
States. This means an annual interest bill of somewhat over
$183,000,000.
Referring to the need of revenue to meet this and other
charges Sir Edmund spoke very plainly on methods of
taxation, upholding the idea of a turnover tax, and urging
careful consideration before imposing drastic supertaxes on
incomes, or heavy taxes on industry. Taxes had been im-
posed during the war under the urge of huge and immediate
revenue. Of necessity some of these taxes were really ex-
periments. It is nothing against the judgment of those who
levied the tax if now they are found to be against the best
interests of the country. The turnover tax of 1 per cent,
taking the place of the "luxury" taxes now happily at an
end would form a sub-stratum of tax revenue. "A small
tax on the sale of commodities and real property in Canada
would hurt so little, would be so fair, would be so easily
collected, and would produce stich a very large sum that
to fail to levy it seems excusable only if it can be shown to
be impracticable." Too heavy taxes upon profits of in-
dustry, and upon incomes, will. Sir Edmund urged, use up
the very funds otherwise available for business extensions.
Thus would be checked the development of industry which
not only gives employment to present and prospective Can-
adian workers, but increases the National income so that
"taxes would not drag upon our income."
ACTION FOR INSURANCE DISMISSED
Though Campbell Quinn, of Finch, Ont., had been for
some years in the motor service business, he did not insure
his premises till June 20th, 1919. On July 8th, 1919, fire
destroyed his premises with a loss of $2,304.35. He sued
the insurance company to recover $1,500, the amount of his
policy. In his judgment given on December 20, Chief Justice
R. M. Meredith comments on the suspicious, nature of the
file, which broke out at three o'clock in the morning. Quinn
had been acquitted at the inquest which followed the fire of
any charge of arson. His action, however, was dismissed
with costs.
B. C. MORTGAGE AND TRUSTS ASSOCIATION
At a meeting of the Mortgage and Trusts Association
of British Columbia, held in Vancouver on November 27th,
the president, George L. Smellie, manager for British
Columbia of the Canada Permanent Mortgage Corporation,
placed his resignation before the meeting. Mr. Smellie was
requested to reconsider his resignation until the next annual
meeting, which will be held in April, 1921. He pointed out
that, since he was retiring from business on February 1st,
1921, he thought that it would be the wisest thing to have
the meeting accept his resignation at the present time. In
deference to his wishes, the meeting accepted his resignation
with regret. R. Ken- Houlgate, general manager of Van-
couver Financial Corporation, was elected to succeed Mr.
Smellie for the unexpired term.
EMPLOYMENT CONDITIONS BECOMING WORSE
Dominion headquarters of the Employment Sei-vice of
Canada, Department of Labor, reports that there was another
large decline in employment during the week ended Decem-
ber 4. It was reported by 4,852 firms that they had released
10,378 persons from employment since the end of the pre-
ceding week, a contraction in the payroll of one and one half
per cent. There were increases in four industrial groups ag-
gregating 1,385 employees, but in twenty-nine groups there
were decreases totalling 11,763 persons. While a decrease
was recorded during the week under review as compared
with the returns for the week of November 27, employment
was still at a higher level than at the beginning of the year,
these firms reporting 2,236 moi'e persons on their payrolls
than on January 17. These fig-ures do not include loss of
time clue to strikes or lockouts.
Increased employment as compared with the returns for
the preceding week was registered only in Nova Scotia and
New Brunswick. The decrease of 4,922 persons recorded in
Ontario was the most pronounced. As compared with the
returns for January 17 all provinces except Ontario and
British Columbia reported a larger volume of employment.
Reductions in employment were anticipated in all provinces
for the following week.
The only important increases in the number of persons
employed as compared with the week of November 27 oc-
curred in logging, leather products and retail trade. In log-
ging and retail trade the increases, which were seasonal
in character, occurred in nearly every province, while in
leather products expansion was reported in Quebec.
The most pronounced shrinka^ges in payroll were regis-
tered by firms in lumber and its products, iron and steel,
tfxtiles and railway construction. In railway construction
alone 2,325 persons wei'e released during the week. This
decline and the falling ofi' in lumber and its products were
of a seasonal nature and were general throughout the coun-
try. In iron and steel products the reductions were also gen-
eral, occurring largely in the manufacture of vehicles. In
textiles the greater part of the losses continued to be re-
ported in garments and threads, yarn and cloth, in the pro-
vinces of Ontario and Quebec.
January 14, 1921
THE MONETARY TIMES
32e
In 1920
The CANADA LIFE
ASSURANCE COMPANY
(Established in 1847)
Made the Following Substantial PROGRESS :
Total Assurance in Force increased to $276,667,000
Total Assets increased to 76,108,000
Reserves for Protection of Policyholders 63,665,000
15,729,000
63,525,000
58,260,000
2,163,000
2,723,000
8.255,000
Total Income in 1920
New Assurances issued in 1920
New Assurances paid for in 1920
•Surplus Ivarned in 1920
Dividends to Policyholders in 1920
Total Pavnients to Policyholders in 1920
Increase
$46,873,000
6,756,000
5,598,000
3,717,000
17,144,000
16,619.000
285,000
1,560,000
1,907,000
* I in brief, are the results for 1920 as shown by
J\OOV€f the Financial Statement,
ry I are a few other important accomplishments
MjCIOW during the year.
1 . Maintained dividend, to Policyholder, at pre-war scale, notwith.tanding increasing cost, and
.ome adver.e conditionr-
2. Improved it. service to the public through special training of Representatives and careful
selection of men.
3. Won un.tinted prai.e from the Government Insurance Departments of Michigan, Illinoi.,
Pennsylvania and Minnesota after most thorough examination of Assets and
Management.
4. Made the largest Surplus Earnings in the history of the Company.
5. Increased the average interest to 6.10'fc.
6. Placed more in.urance with present Policyholder, than in any other year and increased public
intere.t in Monthly Income, Bu.iness Insurance and Group Policies for industrial
workers.
{A complete Annual Statement will be mailed upon request.)
THE MONETARY TIMES
Volume 66.
TWENTY-THIRD ANNUAL REPORT OF
The Merchants Fire Insurance Company
HEAD OFFICE;
Merchants Fire Building, Toronto, Canada
(PURELY CANADIAN)
Major-General G. S. RYERSON JOHN H. C. DURHAM
1st Vice-President 2)id Vice-President and General Manager
FREDERIC P. WYTHE, Assistant General Manager
DIRECTORS
BLOSS P COREY J. W. SCOTT R. H. GREENE W. S. DINGMAN
WILLIAM PRENDERGAST JAMES R. DURHAM, M.D. N. H. STEVENS
RALPH E. GIBSON
President
ALBERT J. WALKER, CA.
Rutherford" WILLIAMSON, ca. (Auditors
DIRECTORS' REPORT
To the Shareholders: —
Your Directors have much pleasure in presenting here-
with the Twenty-third Annual Report covering the year end-
ing December 31st, 1920, together with the usual Cash State-
ment and Balance Sheet of Assets and Liabilities, duly certi-
fied to by the Auditors and passed upon for publication by
the Superintendent of Insurance for Ontario. You will be
profoundly delighted to note therefrom that the operations of
your company during the past year were attended with abund-
ant success, and that the growth and prosperity as indicated
in every dep&rtment is greater than ever reported to you
before.
The Premium Income, Interest Receipts, Building Rentals,
Commissions on Re-Insurance, Re-Insurance Claims and En-
dorsement P'ees were, respectively, $654,707.12, $30,021.83,
$5,900, $1,735.15, $315.90 and $226.92, making a total Income
of $692,897.28.
The Net Profit on the year's operations was $200,194.34.
A dividend of ten per cent. (10%) on the paid-in Capital
Stock of the Company wa-s declared therefrom, and the bal-
ance carried to the credit of Profit and Loss Account.
The amount at risk now stands at $91,687,563.00. The
number of policies in force is 67,928, an increase of 10,960.
The average risk per policy is $1,349.77. Of the foregoing
amount at risk, 75.36% is made up of three-year business,
and 24.64 annual business.
The Expense Ratio for 1920 was 34.72%. The Fire Loss
Ratio was 32.10% and the Net Profit 33.18% of the Net Pre-
mium Income.
The Special Fund deposited with the Ontario Insurance
Department now stands at $116,568.68, and is the largest
made by any Canadian Fire Insurance Company. Further-
more, it is greatly in excess of the statutory requirements,
the amount having been voluntarily increased from time to
time by the Directors of your Company.
Your Directors commenced the year of 1920 with a de-
termination to secure a premium income of Six Hundred
Thousand Dollars, and to make new records in the net re-
sults. A perusal of this statement will show that their
anticipations have been more than realized, and that they are
presenting you with report indicating the greatest growth
and prosperity ever enjoyed by this Company. The Premium
Income secured, will place the Company in the enviable posi-
tion as having the largest premium income of all the com-
panies operating in this Province, and at the same time, se-
curing the same at a very low expense ratio. The Fire Losses
sustained during the year showed practically the same ratio
to premiums as in 1919, the actual amount showing a very
slight increase. Altogether, the affairs of your Company
are in a sound and healthy condition, and the Shareholders
are to be congratulated upon the efficiency of the present
management. The Books, Vouchers and Securities are con-
tinuously checked and audited during the entire year, and
there is not a doubtful asset of any kind on the Books.
The thanks of the Shareholders are due to the splendid
agency staff of this Company, who have worked unceasingly
and uiitiringy in the effort to bring the "Merchants" into the
Royal Bank of Canada
Canada Permanent Mortgage Corporation I
Bankers
proud position of the leading Ontario Company. Composed
of loyal, dependable and careful men, with the interests of the
"Merchants" seemingly always paramount in their minds, the
agency staff met every appeal made to them during the year
with generosity and promptness, and have enabled your Di-
rectors to present this splendid statement. The agency staff
of the Merchants Fire Insurance Company is now composed
of g'pproximately eleven hundred men, and which in numbers,
efficiency and capacity for results, is not excelled or even
equalled by any other agency organization.
We are commencing the New Year with confidence and
the usual determination to again exceed all past records.
The Premium Income for 1921 has been set at One Million
Dollars, and you may rest assured that this task, the greatest
we have ever set ourselves to, will be tackled with the one
idea of success. The insuring public have great confidence
in your Company, and this coupled with the splendid organi-
zation possessed by the "Mei-chants," will again produce re-
sults that will continue the growth and prosperity of your
Company.
All of which is respectfully submitted.
JOHN HENRY COLLIER DURHAM,
Vice-President & General Manager.
CASH STATEMENT December 31st, 1920
CASH RECEIPTS.
Gross Premiums received in Cash $570,634.04
Interest received upon Investments 28,154.87
Rents from Head Office Building 5,900.00
Commission received upon Re-Insurance 1,715.51
Re-Insurance received on Losses 315.90
Cash received for Endorsement Fees 226.92
$606,947.24
Cash received on Investments 60,850.00
Cash on Hand at Head Oflice, Dec. 31st, 1919 . . 2,139.25
Cash in Union Bank of Canada, Dec. 31st, 1919 . . 1,142.86
Cash in Canada Permanent Mtge. Corp., Dec 31st,
1919 3,594.41
Cash in Royal Bank of Canada (General), Dec.
31st, 1919 12,988.47
Cash in Royal Bank of Canada (Savings), Dec.
31st, 1919 10,418.95
$698,081.18
CASH EXPENDITURES.
Agency Commissions $136,030.10
Salaries, Directors & Auditors' Fees 40,252.00
Printing, Stationery & Advertising 15,196.37
Postage, Telegrams and Express 1,354.72
Interest, Discount and Exchange 1,642.51
Building Expenses 5,243.48
Travelling Expenses 3,364.50
Law Costs 50.00
Fuel and Light V0.71
Adjustment of Fire Claims 2,520.26
Provincial Taxes 6,075.57
Janur-.ry 14, 1921
THE MONETARY TIMES
32g
Federal Taxes $ 5,489.33
Goad's Plans Account 1,020.89
Office Furniture and Equipment 1,528.90
Rent of Offices 4,500.00
Sundry Expenses 2,317.02
Total Expenses of Management $226,656.36
Cash paid for Fire Claims during 1920 198,978.78
Cash paid for Re-Insurance ; 8,649.29
Cash paid for Rebates & Cancella-tions 3,005.49
Dividend on Capital Stock 15,000.00
$452,289.92
Cash invested during 1920 215,586.27
Cash on Hand, Dec. 31st, 1920 1,317.22
Cash in Canada- Permanent Mtge. Corp., Dec 31st,
1920 5,804.59
Cash in Royal B&nk of Canada (General), Dec.
31st, 1920 11,015.34
Cash in Royal Bank of Canada (Savings), Dee.
31st, 1920 12,067.84
$698,081.18
Government Deposit $116,500.00
Merchants' policies are the only fire insurance contracts
sold to-day that carries a guarantee that ajl settlements and
payments of Fire Losses will be made immediately after
claim is filed.
BALANCE SHEET, December 31st, 1920
ASSETS.
Capital Stock (Uncalled) $150,000.00
Bonds and Debentures:
Dominion of Canada War Bonds . . . $100,000.00
Grand Trunk Pacific Ry. Bonds 9,720.00
Hydro-Electric Power Bonds 5,000.00
Province of Ontario 5,000.00
City of Toronto 32,796.66
Harbor Commissioner Bonds 25,000.00
Township of York 10,402.03
Township of Winchester • 6,553.49
Township of King 1,459.22
Townshij) of Louth 4,515.24
County of Peel 3,371.63
City of Belleville 5,000.00
City of Windsor 5,056.85
City of Brantford 5,000.00
City of Chatham 5,000.00
City of Hamilton 5,460.00
City of London 5,000.00
City of Kitchener 5,000.00
City of Stratford 5,000.00
City of Woodstock 5,000.00
City of St. Thomas 4,084.26
City of Owen Sound 5,000.00
City of Peterboro 5,000.00
City of Kingston 5,832.35
City of Ottawa '. 5,000.00
City of Gait 5,452.87
City of Guelph .->,000.00
City of Niagara Falls 4,997.98
City of Sarnia 3,759.09
City of Port Arthur 3,000.00
City of Sault Ste. Marie 4,000.00
City of Wellf-nd 2,000.00
City of St. Catharines 5,000.00
Town of Alexandria 3,580.72
Town of Brockville 4,000.00
Town of Brampton . . . ! 4,314.23
Town of Cobourg 4,719.28
Town of Gananoque 2,000.00
Town of Grimsby 3,736.49
Town of Hanover
Town of Hawkesbury
Town of Hespeler
ToviTi of Ingersoll
Town of Kenora
Town of Lakefteld
Town of Leamington
Town of Lindsay
Town of Listowel
Town of Midland
Town of Milton
Town of Mimico
Town of Oshawa
Town of Paris
Town of Preston
Town of St. Mary's
Town of Simcoe
Town of Strathroy
Town of Sudbury
Town of Thorold
Town of Trenton
Town of Walkerville
Town of Waterloo
Town of Weybui-n
Village of Acton
Village of Embro
Village of Port Erie
Village of New Toronto
Village of Merrickville
Village of Port Credit
Village of Waterdown
Canada Permanent Mortgage Corp.
London Loan & Savings Co
Ontario Loan & Debenture Co
Trusts & Guarantee Co. Ltd
Imperial Trusts Co. Ltd
Victoria Loan & Savings Co
Toronto Mortgage Co
Midland Loan & Savings Co
Huron & Erie Mortgage Corp
4,523.88
3,000.00
2,321.93
5,000.00
3,000.00
4,379.58
3,329.06
3,000.00
2,714.33
2,467.49
5,690.03
2,000.00
6,796.72
2,000.00
2,253.31
2,721.89
4,891.90
1,000,00
1,000.00
2,921.32
4,379.51
5,000.00
6,560.54
500.00
2,000.00
2,265.80
3,147.46
2,000.00
987.09
2,365.11
3,000.00
10,000.00
10,000.00
5,000.00
2,500.00
2,500.00
2,500.00
5,000.00
2,500.13
6,000.00
$473,089.47
First Mortgages on Improved Real Estate 191,375.00
Real Estate (Head Office Building) 75,000.00
Accrued Interest on Investments 7,645.37
Amount due from Re-Insurance Company 179.87
Agency Balances (commissions deducted) 21,230.58
Cash on hand, Dec. 31st, 1920 $ 1,317.22
Royal Bank of Canada (General) . . . 11,015.34
Royal Bank of Canada (Savings) . . . 12,067.84
Canada Permanent Mortgage Corp. . 5,804.59
30,204.99
$948,725.28
LIABILITIES.
Capital Stock (Subscribed) $300,000.00
Re-Insurance Reserve (Full Ontario Government
Standard, being 50% of Premiums on all busi-
ness in force on Dec. 31st, 1920) 416,023.02
Appropri&tion for Unadjusted Fire Claims 1,000.00
Reserve for Probable Depreciation on Bonds and
Debentures 10,000.00
Net Surplus over and above all Liabilities, in-
cluding Capital Stock 221,702.26
$948,725.28
Having maintained a continuous audit of the Books of
the Merchants Fire Insurance Company; examined the Securi-
ties at the He?.d Office: verified the Bank Balances; counted
the Cash on Hand; and obtained a Certificate from the In-
surance Department as to the Government Deposit, we here-
by certify that this Balance Sheet is true and correct the
Books conforming thereto.
(Signed) ALBERT J. WALKER, C.A.
(Signed) RUTHERFORD WILLI.AMSON, C.A.
Toronto, Januarv 10th, 1921.
THE MONETARY TIMES
Volume 66.
NOTICE
LAKE SUPEKIOR PAPER COMPANY, LIMITED
Incorporated under the laws of the Dominion of Canada
To the Holders of Six Per Cent First Mortgage 30-Year Gold
Bonds of the above-named Company
Notice is hereby given tliat at a Special General Meeting
of Shareholders of The Spanish River Pulp and Paper Mills,
Limited, held at the Head Office of the Company, in the
City of Toronto, on the 23rd day of June, 1920, the Share-
holders approved of a plan to pay the accumulated divi-
dends on the Preference Stock of the Company up to June
30th, 1920, amounting to 42'?f, by the declaration of a
Preferred Stock dividend, and that in accordance with Clause
5 of a Supplemental Mortgage dated the 20th of January,
1915, made between Lake Superior Paper Company,
Limited, and The Royal Trust Company, the holders
of the various bonds mentioned in said clause, includ-
ing the holders of the bonds to whom this notice is directed
will receive their pro rata share of 10% of the total amount
of the Preference Stock of The Spanish River Pulp and
Paper Mills, Limited, issued in accordance with the said
plan so approved by the Shareholders as aforesaid. Under
the terms of the said Clause 5 of above Supplemental Mort-
gage the holders of the various bonds therein mentioned are
also entitled to 10% of the total amount of any cash divi-
dend paid to the holders of the Common and/or Preference
shares of The Spanish River Pulp and Paper Mills, Limited.
A cash dividend of 1%% for the quarter ending September
30th, 1920, has been distributed to both Common and Pre-
ferred Shareholders, and bondholders vrill be accordingly
entitled to their pro rata share of such dividend.
In order to distribute to the holder's of the above-men-
tioned Six Per Cent. First Mortgage 30-Year Gold Bonds
their proportion of said Preference Shares under said Clause
5, and to provide a convenient means of distributing the
above and all future cash dividends to bondholders, it will
be necessary that all holders of said bonds, whether of
registered bonds or bearer bonds, send their bonds at once
to The Royal Trust Company, 59 Yonge Street, Toronto; or
The Royal Trust Company, Montreal, Quebec; or Agents of
the Bank of Montreal, 64 Wall Street, New York City; or
City Trust and Savings Bank, Dayton, Ohio; or The Bank of
Montreal, 47 Threadneedle Street, London, E.C., England,
in order that the bonds may be stamped with a notation
that the holders thereof have received their respective pro-
portion of the said Preference Stock of The Spanish River
Pulp and Paper Mills, Limited, and have also received the
necessary certificate with coupons attached to enable them
to collect their pro rata share of all cash dividends now or
hereafter distributable to bondholders.
Bondholders are urged to send in their bonds to any of
the above places at once, in order that the above distribution
may be made without undue delay.
THE ROYAL TRUST COMPANY,
Trustee.
Toronto, November 24th, 1920. 352
IT PAYS TO INSURE YOUR AUTOMOBILE
WITH
The Canadian Surety Company
Maxin
Servic
Mh
Cost.
Norwich Union
FIRE INSURANCE
SOCIETY LIMITED
(Founded 1797)
Norwich, England
ire Insurance
Accident and Sickness
Employers' Liability
Plate Glass
Automobile Insurance
Head Office for Canada:
NORWICH UNION BUILDING
12-14 Wellington St. E., Toronto
Condensed Advertisements
" Positions Wanted." 3c per word : all other condensed advertisements
5c. per word. Minimum charge for any condensed advertisement, 65c
per insertion. All condensed advertisements must conform to usual
style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance ; 50 per cent, extra if charged.
A FAST-GROWING GENERAL AGENCY, with excel-
lent organization, requires additional representation in their
office for the Provinces of Alberta and Saskatchewan. Ex-
perienced undei-writers of proven ability. We have three
inspectors in this field. An exceptional opportunity for the
company just entering this territory. Box 373, Monetary
Times, Toronto.
WANTED. — Position with a Financial Institution by
young man with fourteen years' banking experience. Clean
record. Box 375, Monetary Times, Toronto.
BUSINESS MANAGER— Now located in Alberta, would
like responsible executive position with reliable Eastern or
Western firm which could offer such a place in Edmonton or
Calgary, although geographical situation is not essential, as
applicant is willing to go anywhere. General banking,
financial and credit experience. Good correspondent. Un-
married. Age 28. Minimum salary expected, $3,000 per
annum. Engagement any date after January 15th, 1921.
Best of references and bond furnished if necessary. Apply
Box 377, Monetary Times, Toronto.
"Trust Company Service in Canada" is the title of a
pamphlet just issued by the Toronto General Trusts Cor-
poration.
Janua.ry 14, 1921
HE MONETARY TIMES
33
NEW HAZARDS TO PLATE GLASS
Automobiles and Explosions are Important Factors — Recent
Increase in Rates Should Improve Companies'
Position
By John Good
Secretai-y, Guardian husnrance Co. of Canada
THE yeai- 1920 proved a very trying period for glass insur-
ance underwriters, and while the i-eports of the different
companies have yet to be published, it is practically certain
that the business for the twelve months will show an under-
writing loss, this notwithstanding the fact that quite substan-
tial increases in rates were made in July throughout the Do-
minion; but the full benefit of the higher premiums will on'y
be felt during the current year, owing to the fact that tho
bulk of the glass insurance is usually written in the first six
nionths of the year.
The cost of replacing glass was inclined to mount still
higher, but fortunately towards the end of the year prices
began to exhibit a tendency to drop slightly, although the
glass supply houses could give no assurance that the lower
prices would be maintained. Still it is felt that prices must
show some improvement from now on, as manufacturers of
glass in England and Belgium have made a surprisingly good
recovery from the effects of the war and a considerable quan-
tity of glass is now being exported to this and other coun-
tries.
Five Troublesome Years
Tho five years 1916-1920 pro^•ided underwriters with an
abundance of troubles and anxieties, but the close of the past
year showed some hope for better times for glass insurance
companies, which they sorely need. The year was somewhat
distinguished by the action of one of the prominent companies
with a large glass premium income cancelling many thousands
of dollars in premiums on account of the heavy losses during
the past few years. The company in question have been
transacting glass insurance business in Canada for a number
of years, and possessing as they do among their officials some
of the shrewdest glass underwriters, it must be appreciated
that their unsatisfactory results were not due to want of care
or experience.
A comparatively new line of business is now available
for glass insurance companies, viz., the covering of glass of
automobiles. Certain companies in Montreal are issuing such
policies for which at present there is only a fair demand, but
wliich will undoubtedly be increased when this form of glass
insurance, which is of recent origin, becomes better known to
car-owners. All policies of this kind issued in the Province
of Quebec are subject to a minimum annual premium of $5.00.
Automobiles a New Hazard
An increasing hazard which companies now have to con-
tend with is due to the larger number of automobiles in use.
Numerous breakages are caused by stones and other small
objects being cast up by the wheels of passing cars. Losses
sustained in this manner are occurring with greater frequency
year by year, and it is practically impossible for the companies
interested to secure recovery from the car-owners. It mav
not cause great surprise to the public to make knowTi the re-
grettable fact that while some hundreds of windows have been
smashed by stones shot up by the tires of automobiles, there
arc only very rare instances where the owner of the machine
has made good the damage.
Breakages by the settling of buildings have naturally
shown a decrease owing to the lack of building operations, but
with the resumption of construction work the companies will
again be faced with heavy losses from this cause.
It will thus be seen that even when other conditions con-
nected with glass insurance become more normal underwriters
will be compelled to seriously consider the several extra haz-
ards which may be said to have only become important factors
within recent years, but w-hich are, nevertheless, bound to
affect the loss ratios in the future.
YOUR EXCHANGE CALCULATIONS
would be
SIMPLIFIED
by the use of the " Hall Minute Table." By it the fractional percentages from 1 64th to 15 16ths can be found irapidly and
accurately
Owing to the widely varying fluctuations in New York Exchange percentages in sixteenths and thirty-seconds must fre-
quently be calculated by tellers and accountants and these calculations roust necessarily be checked. To do this by ordinary
multiplication and division means considerable time in the course of the ordinary day's business. Speed and accuracy are
essential in calculations of this nature and these are ensured by means of the " Half Minute Table." It is printed on a stiff
card 94 X 14 inches and in a form convenient for hanging on the desk or the wall of the teller's cage for ready reference.
The followinp table of 13 16 per cc-nt. with the directions for use will illustrate the method.
13-16
.4 B C D E F
1
8 12 5 0
2
16 2 5 0 0
3
2 4 3 7 5 0
4
3 2 5 0 0 0
5
4 0 6 2 5 0
6
4 8 7 5 0 0
7
5 6 8 7 5 0
8
6 5 0 0 0 0
9
7 3 12 5 0
DIRECTIONS.
By these tables the percentages from 1-64 to I per cent, on any amount up to $9C0.000
can be readily found. The percentage at the required rate will be given in cents in the
table according to the number of figures in'the amount on which the percentage is desired.
If the amount is four figures, as for instance $7428, use the table as far as the D column,
if five figures as far as the E column, if six figures F column. The procedure is as follows :
Find 13-16 on $76,450—
13-16 on 70.000 5 figures. E colur
6.000 4 •• D ■•
400 3 " C ••
50 2 ■' B ■•
7th row— 568.75
6th •■ - 48.75
4th •■ - 3.25
5th " - .40
Answer 621.15
To find 27.32 on above amount will require two calculations— 13- 16 and 1-32.
Copyright by Bruff Garrelt
Orders for the Table may be sent to A. B. Barker, No. 2 Wellington Street East, Toroiit
The price, postage paid, is 3 for One Dollar.
Single Copies 35 Cents.
THE MONETARY TIMES
Volume 66.
THE BANK OF TORONTO
Report of the
Sixty-Fifth Annual General Meeting
The Sixty-fifth Annual General Meeting of the Bank of
Toronto was held at the Head Office in Toronto on Wednes-
day 12th January, 1921.
On motion the Chair was taken by the President, Mr.
W. G. Gooderham, the Assistant General Manager, Mr. John
R. Lamb was requested to act as Secretary, and Mr. George
R. Hargraft and Major A. E. Duncanson were appointed
Scrutineers.
The Secretary read the Annual Report, as follows: —
The Directors of The Bank of Toronto beg to present
their Report for the year ending 30th November, 1920, ac-
companied by the Statement of the Bank's affairs and the
results of the operations for the year.
PROFIT AND LOSS ACCOUNT.
The Balance at credit of Profit and Loss, on
November 29th, 1919, was $ 793,983.03
The Net Profits for the year, after making full
provision for all bad and doubtful debts, and
deducting expenses, interest accrued on de-
posits and rebate 'on current discounts,
amounted to the sum of 1,017,371.24
$1,811,354.27
This sum has been appropriated as follows: —
Dividends Nos. 154 to 157 at twevle per cent.
per annum $ 600,000.00
Reserved for Taxes $100,000.00
Transferred to Officers' Pension Fund 25,000.00
Written off Bank Premises 100,000.00
225,000.00
Carried forward to next year 986,354.27
$1,811,354.27
There has been a constant demand for credit during the
year, and the available funds of the Bank have been actively
employed with satisfactory results.
The Head Office and Branches have been regularly in-
spected by the Inspection Staff, and at the Head Office the
usual inspection of cash and securities has also been made.
Mr. G. T. Clarkaon, C.A., the Auditor appointed by the
Shareholders of the Bank, has made his examination of our
principal offices and his report is appended to the General
Statement presented herewith. Mr. Clarkson's name will be
submitted to you for reappointment as Auditor.
Eiffht new Branches of the Bank have been opened dur-
ing the year, and three Branches closed, making 161 Branches
now in operation.
A Resolution will be submitted to you by the Dii-ectors
at th^ Annual Meeting requesting your authority to increase
the number of Directors on the Board.
All of which is respectfully submitted.
W. G. GOODERHAM,
President.
GENERAL STATEMENT
30th November, 1920.
LIABILITIES.
Notes in circulation
Deposits bearing interest, in-
cluding interest accrued to
date of statement $62,542,753
Deposits not bearing interest . . 18,615,133
.$ 8,497,128.00
Balances due to other banks in
Canada 243,812.85
Balances due to banks and bank-
ing correspondents in the
United Kingdom and for-
eign countries . 1,497,933.95
Quarterly dividend, payable 1st
December, 1920 150,000.00
Dividends unpaid ' 1,088.00
81,157,887.29
1,741,746.80
Acceptances under letters of credit
Capital paid-up $ 5,000,000.00
Rest 6,000,000.00
Balance of profit and loss ac-
count carried forward 986,354.27
151,088.00
285,685.57
$ 91,833,535.66
- 11,986,354.27
$103,819,889.93
ASSETS.
Gold and silver coin current . . $ 1,006,761
Dominion notes held 13,065,125
Deposit in the central gold
reserves 4,500,000
Deposit with the Minister for
the purposes of the Circula-
tion Fund
Notes of other banks
Cheques on other banks
Balances due by banks and
banking correspondents
elsewhere than in Canada
Dominion and Provincial Gov-
. ernment securities, not ex-
ceeding market value ....
Canadian municipal securities
and British, foreign and
colonial public securities
other than Canadian
Railway and other boads, de-
bentures and stocks, not
exceeding market value . .
Call and short (not exceeding
thirty days) loans in Can-
ada, on bonds, debentures
and stocks
$18,571,886.22
254,834.65
751,616.55
6,026,559.70
5,231,801.22
7,465,486.23
711,237.16
2,217,415.90
January 14, 1921
THE MONETARY TIMES
36
Call and short (not exceeding
thirty days) loans else-
where than in Canada ... $ 1,000,000.00
$ 43,021,649.26
Other current loans and dis-
counts in Canada (less re-
bate of interest, $233,435.00) $56,7.53,148.13
Overdue debts (estimated loss
provided for) 193,035.50
$ 56,946,183.63
Liabilities of customers under letters of credit,
as per contra 285,685.57
Bank premises, at not more than cost, less
amounts written off 3,566,371.47
In addition to the examination mentioned, the cash and
securities at the chief office and certain of the principal
branches were checked and verified by me during the year,
and found to be in accord with the books of the bank.
All information and explanations required have been
given to me, and all transactions of the bank which have
come under my notice have, in my opinion, been within the
powers of the bank.
G. T. CLARKSON,
Toronto, December 18th, 1920. Chartered Accountant.
W. G. GOODERHAM,
President.
Toronto, 30th November, 1920.
$103,819,889.93
THOS. F. HOW,
General Manager.
ALUITOR'S REPORT TO THE SHAREHOLDERS.
To the Shareholders of the Bank of Toronto: —
~~ I have compared the above Balance Sheet with the books
and accounts at the chief office of the Bank of Toronto, and
certified returns received from its branches, and after check-
ing the cash and verifying the securities at the chief office
and certain of the principal branches on November 30th,
1920, I certify that in my opinion such Balance Sheet ex-
hibits a true and correct view of the state of the bank's
affairs according to the best of my information, the explana-
tions given to me, and as shown by the books of the bank.
The Meeting was addressed by the President, Vice-Presi-
dent and General Manager.
The report of the Directors was adopted. By-law No.
30, increasing the number of Directors to fourteen, was
passed, and Mr. G. T. Clarkson, C.A., was reappointed as
Auditor.
The thanks of the Stockholders was extended to the
President, Vice-President a»d Directors, also to the General
Manager and other officers for their services during the past
year.
The following Directors were elected: W. G. Gooder-
ham, William Stone, John Macdonald, Lt.-Col. A. E. Gooder-
ham! Joseph Henderson, Brig.-Gen. F. S. Meighen, J. L.
Englehart, William I. Gear, Paul J. Myler, A. H. Campbell,
William R. Bawlf, John I. McFarland and James D. Chap-
lin, M.P.
At a subsequent meeting of the Board Mr. W. G. Good-
erham was re-elected President and Mr. Joseph Henderson
Vice-President. ^^^
SCOTTISH CANADIAN ASSURANCE OBTAINS
LICENSE
Will Write Fire and Hail Business in Canada — Eagle, Star
and British Dominions Investigating Rainfall Records
Here — Retail .Merchants .Mutual Fire Risks
LICENSE has been issued by the Dominion government to
the Scottish Canadian Assurance Company, authorizing
the company to transact in Canada the business of fire and
hail insurance. The head office of the company is to be situ-
ated in Toronto, and T. H. Hall has been appointed chief
agent.
The Scottish Canadian Assurance Corporation was incor-
porated at the last session of parliament by special act,
authorizing it to do business in fire, accident, sickness, auto-
mobile, burglary and hail insui-ance. The authorized capital
is $1,000,000. Tl.e following amounts must be paid up in
order to do the respective classes of business: Fire, $100,-
000; accident, $40,000; sickness, $10,000; automobile, $20,000;
burglary, $20,000; hail, $50,000. Seven hundred and fifty
thousand dollars of the stock has already been subscribed,
of which $150,000, the amount required to do fire and hail
business, has been paid up. The General Accident, Fire and
Life Assurance Corporation, Ltd., of Perth, Scotland, which
controls the General Accident of Canada, also controls the
Scottish Canadian.
A general meeting of the shareholders was held on
July 23 last, the following directors being elected: T.H.Hall,
Toronto; F. Richardson, Philadelphia; W. A. Barrington, To-
ronto; J. F. Michie, Toronto; J. A. Macintosh, Toronto;
G. W. Rowland, Toronto; E. Hay, Toronto; J. F. Norie-
Miller and S. Norie-Miller, both of Perth, Scotland.
During the next five years the company must increase
its paid-up capital by $15,000 per annum, making an addi-
tion of $75,000 to capital and surplus. One hundred and ten
thousand dollars of 1934 Victory bonds have been de-
posited with the Department of Insurance, and future invest-
ments will be mostly in provincial and municipal bonds. The
company has already registered in Manitoba, Saskatchewan
and Alberta, and expects to be shortly in Alberta.
The United States Fidelity and Guaranty Company has
been authorized to transact forgery insurance here in addi-
tion to the other classes of business for which it is already
licensed. , , , ,-.
The Liverpool and London and Globe Insurance Com-
pany Limited, with their affiliated companies, the Liverpool-
Manitoba Assurance Company and the Globe Indemnity Com-
pany of Canada, on January 1 opened a branch, with head-
quarters in the Excelsior Life Building, Toronto, to which
all the agents in Ontario west of the line of the Kingston
and Pembroke Railway will report their business. The
branch is in charge of J. D. Simpson, local manager. Ihe
reason for this departure is to afford western Ontario agents
quicker service, and generally to facilitate the extensive
operations of these three companies. , . ^ ,, , ,
The general agency of the Fidelity-Phenix for Montreal,
which was formerly held by Geo. W. Pacaud, has been ter-
minated and the Montreal business is now carried on at the
head office at 17 St. John Street, Montreal. , ^ ^ ,
Robert Gambles, manager of the Pluvius department ot
the Eagle, Star and British Dominions Insurance Company,
is in Canada investigating rainfall records, and it is ex-
pected that the company will shortly commence writing ram
insurance here.
Retail Merchants Fire Risks
Arrangements have been completed and authorization
granted bv A. E. Fisher, Saskatchewan superintendent of
insurance," by which the business of the Retail Merchants
Mutual Fire Insurance Company, a company subsidiary to
the Retail Merchants Association, is transferred to the Retail
Merchants Underwriters Agency. The Retail Merchants
Underwriters Agency came into being through an arrange-
36
THE M 0 N ET A R Y TIMES
Volume 66.
nient by which the Northwestern Mutual Fire Association of
Seattle, Washington, under whose guarantee the agency
opei-ates, agreed to co-operate with the various provincial
boards of the Retail Merchants Association and handle mem-
bers' risks exclusively.
"Already British Columbia, Alberta, Montana, New
Brunsvirick and Saskatchewan have linked up with this insur-
ance service for their members, and Ontario and Quebec
have the step under consideration," stated F. E. Raymond,
provincial secretary of the Retail Merchants Association,
"and the hope is expressed that before long every merchant
in the nine provinces of the Dominion will be able to link
up in association membership through the saving in the cost
of insurance which this service will give him.
"Previous to the formation of the Retail Merchants
Under\vTiters Agency, Saskatchewan was the only province
in which the retail merchants had organized a mutual insur-
ance company. The old Saskatchewan company came into
being in 1915, and has shown steady growth from year to
year. It was necessary, however, to act conservatively in
order to husband its resources, and in consequence policy-
holders were restricted to $2,000 of insurance in the smaller
towns and $4,000 in cities and, towns under adequate fire
protection. By virtue of our arrangement with the Retail
Merchants Underwriters Agency, however, we will be able
to satisfy our members to the limit, and the dividends by
which they will benefit each year will amount to 35 per cent,
on all premiums paid."
Sun Life Agreement
The Sun Life Assurance Company has completed an
agreement with the United Grain Growers' Security Com-
pany, Ltd., by which the latter company's representatives
will now act as agents for the insurance company.
Geo. Burdett, manager of the Continental Life Insur-
ance Company for Manitoba, has been transferred to Toronto.
CANADA NORTH-WEST LAND COMPANY
The Canada North-West Land Co., Ltd., now in liqui-
dation, announces a distribution on realization of assets of
$5 per share, payable February 14. Shareholders are re-
minded that as the distributions on realization of assets can
only be made as, and when, sufficient funds are on hand from
time to time, the payments are bound to be at irregular
intervals and cannot be counted upon to be made at any fixed
periods. The shareholders are further reminded that as each
distribution on realization is made, the assets of the company
are proportionately depleted, and that these payments are
not and cannot in any way be regarded as dividends.
CROWN IS PRIOR CREDITOR
The Crown's right to priority of claim in the estate of
an insolvent creditor is emphasized in a judgment handed
down on January 8 by the Exchequer Court of Canada in
which W. A. Cole, of Ottawa, assignee of Max Lithwick's
insolvent estate, is ordered to pay $760 income tax. Max
Lithwick, the insolvent, failed to file an income tax state-
ment in 1917, and, subsequently, became insolvent. Mr. Cole
was appointed assignee in charge of the estate. He did not
contest the amount claimed for income tax, but a contro-
versy arose as to whether the amount claimed was to be paid
in full prioi-ity to claims of all other creditors of like degree.
In giving judgment, Mr. Justice Audette states that the
Supreme Court has i-uled that the Crown, as a simple con-
tract-creditor, for public moneys of the Dominion deposited
with a provincial court, is entitled to priority over other
creditors of equal degree. "Unless this priority to which the
prerogative attaches in favor of the Crown has been takep
away by competent statutory authority, I must find that it
is still good law."
BUILDING PERMITS DOWN FORTY-FIVE PER CENT.
Decrease of Nearly Four and Half Millions in November as
Compared with Previous Month
BUILDING permits issued in fifty-six cities showed a de-
crease during November, 1920, as compared with the
preceding month, the total value of building pei-mits falling
from $9,660,538 in October to $5,289,321 in November, a de-
crease of $4,371,217, or 45.3 per cent. Prince Edward Island
and British Columbia were the only provinces to register
increases in this comparison, while of the declines recorded
in the remaining provinces, that of $3,094,706, or 51 per cent.,
in Ontario, was the largest. As compared with the figures
for the corresponding month in 1919, there was a deci'ease
of $2,443,942, or 31.6 per cent., the value for November, 1919,
having been $7,733,263. In this comparison all provinces
showed declines.
DEPARTMENT
OF LABOUR
FIGURES
Nova Scotia
♦Halifax
New Glasgow.
*3ydney
.Vbw Brunswick...
Fredericton
*.Moncton .........
* St. John
lUEBEC
•Montreal I
Maisonneuve ... /
* Quebec
Shawinigan Falls
*Sherbrooke
•Three Rivers
* Westmount
Ontario
Belleville..
•Brantford .
Chatham..
•Fort VVillia
G.ilt
"Guelph.
'Ha
ilton
•Kingst
•Kitchener . . .
■ London
Niagara Fall
Oshavva
•Ottawa
Owen Sound
•Peterboro
•PortArth
'Stratford
•St. Catha
•St. Thorn;
Sarnia ...
gh
Sault Ste. .Mar
WellandV. .. ."!
'Windsor
Woodstock.
Manitoba
•Brandon
St. Boniface
'Winnipeg. . . .
Saskatchewan .
* Moose Jaw. . .
•Regina
sltato
.\lberta
•Calgary
•Rdmonton....
Lethbridge. . . .
.Medicine Hat.
Bri-
I COLUMBI.
•New Westminster.
Point Grey
Prince Rupert..
South Van
8
4,000
4,000
231,523 86,725
5.600 3,500
166.573 54,225
59,350 29,00C
985,426
725,526
112,335
25.000
23.600
54.700
44,265
6,061,070
13,200
68,775
24,615
505,400
4,500
27,870
325,400
18,920
187,490
267,305
47,200
18,900
721 .049
15,000
211,966
10,910
:f4.iiM3
411, VW
•Total— 35 citi(
124,325
2,844,372
12,565
424,025
29,305
618,.'i50
275,975
12,425
330,150
220,945
99,100
68,050
53,795
498.820
418,000
72,680
5,290
2.8,'>0
541.448
11,185
15,400
132,970
17,200
69,490
258.833
36,370
9,660,538
930,340
612,810
119.840
1,200
140,300
26,800
29,890
850
23,520
6,625
33,450
2,000
43,390
161,775
8,920
3,295
238,895
16.450
86,900
143,425
3,000
115,760
5,100
6.236
44.048
6.675
.56,353
8,280
1,816,937
9,825
116,405
8,250
283,877
6.800
17,827
259,2,50
197,820
33,470
105,350
59.000
136,875
70,500
56,100
9,925
500
17,300
311,615
Nil.
52.070
148,075
53,045
5.289,321
4.689 201
1,268,607
890,864
171,378
15,000
40,200
124.875
26,290
4,671,150
54,700
194,945
11,425
46,500
27,000
20,340
525.940
12,793
86,690
109,960
66,100
203,350
264.550
8,500
4,940
10,968
10,805
44,035
6,810
61,190
20,075
2,536.045
36,314
291,285
15,890
317,850
7,000
1.450
309,400
201,995
8,200
173,350
20.445
147,445
56,000
73,205
12,890
5,350
587,491
900
10,200
106,205
40,711
26.760
387,530
15,185
7.733.263
7,004,453
Janu&ry 14, 1921
THE MONETARY TIMES
TO-NIGHT— if the FIRE FIEND
VISITS YOUR PLANT
and leaves destruction in its wake, will it leave you badly
crippled financially — or ruined — or will it find you safe-
guarded against even total destruction, and ready to repair
its ravages with the least possible delay and with, at most,
trivial loss?
FIRE INSURANCE is your only real safeguard. It be-
hooves you, then, to consider, very carefully whether or not
you are protected for a sufficient amount. The strength and
standing of the insurance company, and its reputation for
prompt and liberal settlement of losses, will also receive
the attention of the careful executive.
Since A. D. 1714 the Union Assurance Society has been
insuring against fire. In its long history, conflagrations of
every kind have been met and successfully withstood, and
the Society to-day is in a stronger position to meet losses
than ever before. During more than 200 years of service,
the Society has maintained a reputation for strength and
liberality of settlement that is unassailable.
MORE THAN TEN MILLIONS OF ASSETS BEHIND
EVERY POLICY ISSUED BY THIS SOCIETY
Good to Insure With. Good to Represent.
Union Assurance Society Limited
CANADA BRANCH
Corner St. James and McGill Streets -
T. L. MORRISEY, Resident Manager
OF LONDON
MONTREAL
NORTH WEST BRANCH
Allan Killam & McKay Block - - - -
THOS. BRUCE. Branch Manager
WINNIPEG
38
THE MONETARY TIMES
Volume 66.
PUBLIC STOCK OFFERINGS REACH GOOD TOTAL
New Financing of Industrial and Other Companies Exceeds
Fifty-Three Millions — Ten Millions of New
Chartered Bank Stock
DURING 1920 Canadian industrial and other companies
made public offering of preferred shares to the extent
of $53,392,000. These shares were underwritten by reputable
investment houses and retailed at attractive prices. In very
few cases was the offering made below par, and the majority
of the issues were made with a bonus of common stock.
In addition, six of the Canadian chartered banks placed
on the market $10,000,000 of new stock. Shareholders were
given the preference in the sale of these shares, and the gen-
eral public participated only to a very small extent. The
offerings were attractive, being made considerably below
market. Details are given below.
Other Capitalization Changes
Besides these preferred and bank stock offerings, there
were some important changes in the capital of many other
corporations, which are interesting to review.
The Dominion Steel Corporation issued $5,902,000 ad-
ditional common stock, while the Dominion Iron and Steel Co.
also issued $4,200,000 additional common stock. Laurentide,
Ltd., issued $28,800,000 new stock, allotted at the rate of
three new for one old share, while National Breweries also
issued new capital, giving four $25 shares for one $100
fJOGOiT- hT !SI4- -_ ■XPrniOEB- IS20
Tx: vsRTinL-iiNSf couNecT the Moi^iHir- MmtMUM
■ Th& Premium on New York Fmids.
The above Chart prepared by the Alberta Trewury Department from «>?,>}[" »"PP''«^
by the CanadUn B«nk of Commerce and the Uniota Bank of Canada, illustrates the
remirkable uparard mowment which has characterized the exchange situation since
war ended.
share. Riordon Pulp and Paper Co. issued $1,500,000 com-
mon shares, which were allotted to shareholders at $125.
Spanish River Pulp and Paper Co. issued new preferred
stock to wipe out arrears on old preferred. New shares were
allotted to shareholders to the extent of 42 per cent., of the
par value outstanding preferred stock, which was then
$5,699,100.
The Canadian General Electric Co. issued $1,000,000
additional common stock, bringing the total capitalization of
that company to $8,000,000 common, paid up, and $2,000,000
preferred.
A special dividend of 25 per cent., available to share-
holders in the form of new stock at the rate of one new
share for each four held, was declared by the Lake of the
Woods Milling Co. As a result of this 7,000 shares of a
par value of $100 are now listed on the Toronto Stock Ex-
change.
Shareholders of the Wabasso Cotton Co. converted 17,500
shares of $100 par value into 35,000 shares of no par value,
holders of the old shares receiving two for one.
Under the new Riordon merger plans, shareholders of
the Kipawa Co., Ltd., expanded their holdings of stock into
new Riordon Co., Ltd., common shares, the basis of exchange
being 1% shares of new for one of old.
The bond issue of the St. Maurice Paper Co. was con-
verted into common stock, bringing the common capitalization
up to $7,899,900. This amount is the sole outstanding liability
to shareholders of the company.
The Dryden Pulp and Paper Co., Ltd., whose bonds are
held by English interests, sold 100,000 shares of common
stock (no par value) in Canada, at a price of $35 per share.
Capitalization of the Brompton Pulp and Paper Co. was
increased from 70,000 shares of a par value of $100 each to
210,000 shares of no par value. Shareholders received two
new shares for one of old, and the remaining 70,000 is kept
in the treasury.
Price Brothers and Howard Smith
Howard Smith Paper Mills, Ltd., issued $1,000,000 new
common stock. Shares were available to shareholders of re-
cord November 5 last, and right to subscribe expired on No-
vember 15. Terms of subscription were as follows : Ten
per cent, on subscription or before November 15; 15 per cent.
on or before December 15; 15 per cent, on or before January
15, 1921; 15 per cent, on or before February 15, 1921; 15
per cent, on or before March 15, 1921 ; 15 per cent, on or
before April 15, 1921, and 15 per cent, on or before May
15, 1921.
Shareholders of Price Bros., Ltd., transferred the ex-
tensive business and holdings of the company to a new con-
cern with the same name in consideration of 426,710 shares
of the new enterprise's common stock, and the assumption
by the new concern of bonded debt and other obligations.
Holders of the fomier stock received five shares of the new-
security for each one of old. New shares wei'e of $100 par
value.
Before the reorganization of the company earlier in the
year a stock dividend of 22 per cent, was declared, increasing
the capital from $5,000,000 to $8,540,000.
The Abitibi Power and Paper Company recalled its
$5,000,000 share capital, issued on the basis of $100 par
value, and reissued it in the form of 250,000 shares of no
par value, or five new shares for each one of the original
issue.
The Provincial Paper Mills, Limited, was reorganized
to take over the Provincial Paper Mills, Ltd., and the Port
Arthur Paper Company, its outstanding capital being in-
creased to $1,700,000 preferred and $3,500,000 common shares
on the basis of three shares of new stock for one of old.
The Wayagamack Pulp and Paper Co., Ltd., increased
its outstanding 50,000 shares of $100 par value to 250,000
shares of no par value, giving to each shareholder two shares
of new for one share of old, and offered 50,000 shares ratably
to shareholders, retaining 100,000 additional shares in the
treasury for possible future needs.
Janua-ry 14, 1921
THE MONETARY TIMES
39
General
Fire
Insurance
Capital Subscribed
$500,000
, Vice-President
.IN. Sec -Treas
Good Ope
10th Floor, Electric Railway Chambers
88 for Live Agents
THE EMPLOYERS'
LIABILITY ASSURANCE CORPORATION
OF LONDON, ENG. LIMITED
ISSUES
Personal Accident Sickness
Employers' Liability Automobile
Workmen's Compensation Fidelity Guarantee
and Fire Insurance Policies
C. W. I. WOODLAND
General Manager for Canada and Newfoundland
Lewis Building,
MONTREAL
JOHN JENKINS,
Fire Manager
Temple Bldg.
TORONTO
CROWN LIFE
WE have a policy to suit every insurance need — up-
to-date, liberal in lis provisions. Participating
Policyholders in th- Crown Life are entitled to ''.^ of
all profits earned by the Company in addition to the
guarantees contained in their Policies.
u\
The Crown l.ift is a good Comfiany \
Grown Life Insurance Co., Toronto
nttd in unrft>resenftd districts
\B
^^^ ®lip llmnn -^,
Fire Insurance Company. Limited, of PARIS, FRANCE
Capital fully subscribed. 50% paid up $ 2,000.000.00
Fire and Gencr;il Reserve Funds 8.270,000.00
Available Balance from Profit and Loss Account 55,891.00
Net premiums in 1919 8.648,669.00
Total Losses paid to Slsl December. 1919 114.500.000 00
Canadian Branch. 17 St. John Street. Montreal: Manager for Canada.
Mai;rice Perrand. Toronto Offices. J. H. Ewart. Chief Agent. 18 Welling-
ton St. East; K. B. Rice * Sons. Toronto Agents. 66 Victoria St.
ASK FOR AN AGENCY FROM THE
"GRESHAM"
Liberal Policies Reduced Premiums
ESTABUSHED 1848
Funds Exceed Fifty Million Dollars
Gresham Life Assurance Society
Gresbam Building
MONTREAL
Guardian Assurance Company
Limited, of London, England Established issi
Capital Subscribed $10,000,000
Capital Paid-up $ 5,000,000
Total Investments Exceed $40,000,000
Head Office for Canada, Guardian Building, Montreal
H. M. LA.MBERT. .Manager B E. HARDS. .Assistant Manager.
ARMSTRONG & DeWITT, Limited, General Agents
36 TORONTO STREET TORONTO
40
THE MONETARY TIMES
Volume 66.
Kaministiquia Power Co. declared a stock dividend of
13 ',2 per cent, in common stock. As the paid-up capital of
the company in common stock amounts to $2,198,018, the
amount distributed would be equal to $296,732, or little more
than $5,000 short of the full authorized amount of capital
at $2,500,000.
Canadian Car and Foundry Co., Ltd., liquidated the 22%
per cent, dividend arrears on the cumulative preferred stock
of the enterprise through the issue of 6 per cent, negotiable
script maturing- in seven years. The total paid-up preferred
capital is $7,500,000.
The New Brun.'ivvlck Telephone Co. increased its capital
stock by $400,000, the money being needed for the reimburse-
ment by the company for money borrowed for plant exten-
sion. The new shares, which are of $10 par value, were
offered at 110 and accrued dividends, to yield 7.27 per cent.,
by the Eastern Securities Co., Ltd., and J. M. Robinson and
Sons. ,
Alberta Four Mills, Ltd., offered balance of $1,400,000
stock at $100 per share, fully paid and non-assessable. There
was no bonus or promotion stock.
i'llCST 411 AKTKK
rk Kids.. Ltd.(pref.)
■aniount-Dshawu Theatres. Ltd.(pret. cum.
-■n Kingstun Theatre, Ltd. (pref. cum.)
uninnton Tobacco Co.. Ltd. (pref. cum.)....
;n Cakary Theatre, Ltd. (pref. cum.)
-•n Vancouver Theatre, Ltd. (pref. cum.). .
;n Montreal Theatre. Ltd. (pref. cum.),
milton Theatres. Ltd. (sink. fd. cum. pref.)
fd. pref).
Ha
Bankers' Financial Corp. (cum, pref.l
Loew's Windsor Theatre (cum. pref.)
Canad an-American Resources, Ltd. I pref. cui
Can. Mead-Morrison Co. (cum. redeemabk- sin
Canadian Manhasset Cotton Co. (cum pref ),
Chase Tractors Corp.. Ltd. (pref. cum)
North Star Oil Refinmg Co.. Ltd. (pref. cum),
Howard Smith Paper Mills. Ltd. (pref. cum. participatinj!)
C.unns. Ltd. Ipref. cum.)
Can.-»dian Connecticut Cotton Mills, Ltd. (pref,
participating)
Cuban<:anadian Sugar Co. (pref. cum.)
Famous Players Can. Corp. (pref. cum.)
Total
1>iE<'0\» QIAKTKIt
Gait Brass Co., Ltd, (pref. cum.)
Interprovincial Clay Products, Ltd. (pref. red. cum.).
Dominion Loose Leaf Co., Ltd. (pref. cum. participating)
Paramount-Kitchener Theatres Ltd. (pref, cum, red,)
Eternal Battery Co, of Canada, Ltd, (pref. cum. part.l
Allen's Winnipeg Theatres, Ltd, (pref, cum )
Standard Paving Co.. Ltd. (pref. cum.)
H. D. McKenzie & Co.. Ltd. (cum. pref.).
Dominion Chocolate Co., Ltd. (cum. sink, fj- pref red i
Commercial Finance Corp., Ltd, (cum, pref.
Willard's Chocolates. Ltd. Icum. pref. sink, fd.)
Ames Holden Tire Co , Ltd, (cum. pref.)
New Brunswicl< Power Co. (cum. first pref. red.) .... . .
Dominion Engineering Works, Ltd. (cum. pref. red,)
Chemical Products, Ltd, (cum, part pref.l
Great Eastern Paper Co., Ltd. icum. pref,)
RiordonCo., Ltd. (cum. 1st pref.)
Total ,
THIRD <(l iRTKU
Beaver Motor Truck Corp., Hamilton. (cum. retirable pfd,)
Automobile Club of Canada. Ltd,, (cum. pref.)
Rubber Co. of Canada (cum. part, pref.)
Lake St, John Pulp & Paper, Ltd, (cum. pfd. non-part.)
Allen Theatres, Ltd, (pref, cum,)
Winnipeg Electric Railway Co, (cum, pref.)
Three Rivers Pulp* Paper Co., Ltd. (cum. pref. part.)...
Total
LA!«T ailAUTKK
Lounsbury Co , Ltd. (cum. pfd. part.).
Oak Tires Rubber Co. (part.)
J, W, Camming Mfg, Co., Ltd
Adirondack Steel Foundries Corp. (cur
Grand Total for Year..
ICAKK STO('K!«
Bank of Hamilton
Banque Provinciale du Can
Bank of Montreal
.Merchants Bank of Canada..
Royal Bank of Canada
Standard Bank of Canada
Div.
Amount
Rate
%
» !
100,000
8
12,1.000
7
175.000
8
•25O.OU0
7
260.0(H)
7
300,000
8
350,000
8
400.000
7
500,000
7
500.000
7
500,000
7
600,000
7
600,000
g
750,000
8
1,000,000
7
1 ,.500,000
8
1 SO 000
7
3.000,000
8
4,000 000
8
4,000,000
S
20,410,000
13'2,000
8
150.000
8
150,000
175.000
7
300,000
7
3'i.S 0(10
/
:«5.ii(i(i
7
;<?.';, iiiKi
>*
600,0(10
7
600,(K)()
8
800,000
8
1 ,000,(M>0
7
1,4(K).000
8
l,750,(H)O
8
2,500,(10(1
8
8.5()0.O((O
7
19,S22,0<K)
260,tKK)
8
6(X1.000
8
60(),()(K1
S
1,000,000
8
2,500.000
8
3.000,000
7
4.000.000
S
11,960.(K)0
■200,000
8
■25O.()()0
8
•250,000
8
SOd.dOO
7
1 ,500.000
53,392,000
1.000,0(«)
12
1 ,000,000
9
2,0(H1,0(K)
12
2.100.00(1
10
3,4(10.000
12
.iOd.OOO
13
1(I.IKH).(«K)
J. M. Robinson & Sons
Goldman & Company
Ontario Security Company
Security Trnst Company
nancial Corp.* British-American Bond Corp.
Housser. Wood & Company
Sanson & Co.. Campbell, Thompson & Co, and
Goldman & Company
Anderson, Robinson & Company
Richardson, Sheppard & Thorburn
Ha
Br
Nesbitt, 1 hompson & Company
Graham. Sanson & Company
Osier & Hammond
Greenshields & Co, and Nesbitt, Thomson & Co,
National City Co,, Ltd, and Greenshields & Co.
Royal Securities Corporation
Royal Securities Corporation
Royal Securities Corporation
Balfour White &• Company
Exchange Securities. Limited
Housser. Wood & Company
Goldman & Company
Notre Dame Investment Company
Edward Brown & Company
Foster. Barrett, Riepert & Low, Limited
Standard Bond Corporation, Limited
Campbell, Thompson & Company
Standard Securities Corporation
Dominion Securities Corporation and Morrow & Jellett
Eastern Securities Co., Limited
I McDougall* Cowans
Graham, Sanson & Co, and Canada Ind. Bd, Corp.
Thornton, DavidsonS Co., & Lawrence Chamberlain & Co.
Royal Securities Corporation
Morgan-Dean, Harris & Mulveney
Provincial Bond Company
R, ,M, Hefternan & Company
Direct to Public
Housser, Wood & Company and other
Nesbitt, Thomson & Company
Guaranty Investment Corporation, Limi
tern Securities Co., Limited
Direct to Public
rities. Ltd., Standard Bond Corp,. Ltd.
To Shareholders
(Ratio o
le to four)
(Ratio o
le to two)
(Ratio o
le to ten)
(Ratio o
le to four)
(Ratio o
ne to five)
(Ratio o
ie to seven)
GUARANTY TRUST COMPANY OF NEW YORK
The statement of condition issued by the Guaranty Trust
Company of New York as of December 31st last shows that
during the year 1920 the company's profits were $12,355,950.
This amount, added to a credit balance of $6,239,889 on Jan-
uary 1, 1920, and to miscellaneous credits of $155,624 during
the year, brings the total credits in the undivided profits
account up to $18,751,464. The deductions from this amount
were $5,000,000 to cover the 20 per cent, dividend paid
dui'ing the year and $1,676,392 which was appropi'iated for
distribution to officers and employees under the company's
additional compensation plan. With these deductions, total-
ling $6,676,392, the company's final credit balance in un-
divided profits account is $12,075,072. The statement also
shows an increase of some $22,000,000 in deposits since No-
vember 15, the date of last previous statement. Total re-
sources now stand at $923,663,338.
JanuK.ry 14, 1921
THE MONETARY TIMES
iliiiiMiiiiiiiiiiiiiiiiiiiiiiiiniiMiiiiiiiMMiiiMMiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiniiMiMiiiiiiiiiniiiiiiiiiniiiiiiiuiiMiiuiiiiiiiniiiiiiiiiiiiiiiiiiiMiiiiiii^
I CHARTERED ACCOUNTANTS I
HlllMIIIMIIIIMIIIIIIIIIMUIIMIIIMMIIirilllllMIIIIIMIIinnillllllMIIIIIIIIUIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIMIMinilllllllllllllllMlllllllllllllllllllllllllllllhT
Baldwin,
Dow &
Bowman
CHARTERED
ACCOUNTANTS
OFFICES AT
Edmonton
Alberta
Toronto
Ont.
CHARLES D. CORBOULD
Chartered Accountant and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. ^Vinnipeg
Correspondents at Toronto. London. Eng..
Vancouver
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada Bldg., Saskatoon, Sask.
W. A. Bawohn. C.A. (P.C.A. England and
BAWDEN, klDD &"C0.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Branch at Naaaimo. B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON - ONTARIO
listablished ISSj
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Chambers
Winnipeg, Man.
W. A. Henderson. C.A. J. J. Cordner. C.A.
C'tMc Addr.'S'i "Ormli.-" Western Union Code
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS
24 King Street West - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD,
GRIGGS & CO.
RONALD, MERRETT,
GRIGGS & CO.
Ckurtered A
Trust
es.Liiii
tts. Aii.ittors.
ulatiirs
Winnipeg, Toronto, Sask
Montreal, New York
Btoon.MooseJaw,
London, Eng.
SERVICE
Thorne, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Costs AM) HwoniCTlON
Bank of
Hamilton Bldg.
TORONTO
------ ::.:';r*ovr*^'
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING TORONTO, CANADA
K. WiUiamson, C.A.. J. U. Wallace. C.A.
A J. Walker. C A. H. A. Shiach C. A.
RUTHERFORD WILLIAMSON & CO.
Chartered Accountants. Trustees and
Liquidators
86 AnKLAiDE Street East, TORO.MTO
604 McOlLU Building. MONTKEAL
Cable Address-" WILLCO."
Represented at Halifax. St. John, Winnipeg.
CLARKSON, GORDON & DILWORTH
Chartered Accountants. Trustees,
Rc^ceivers, LiQuidators
Merchants Bank Bldg., 15 Wellington Street >Vest ToronI
E R C Clarkson „ . u,- u j ■„.. <~' T Cl-rks
H n I.o.-l<hart C.or.lnn Established I8R4 n . niKi.or
Norman B. McLeod
Chartered Accountant
AUDIT.S INVE.STIGATIONS
COST ACCOUNTING
803 Kent Bldg. - TORONTO
Phone MAIN 3914
HARBINSON & ALLEN
ChavUrcJ Accounianh
408 Manning: Chambers
TORONTO
Arthur Phillips & Co.
CHARTERED ACCOUNTANTS
508-509 Electric Railway Chambers
WINNIPEG - Man.
Cable Address— "Lnravel "
Your Card here would ensure it being
seen by the principal financial and
commercial interests in Canada
Ask about special rates for
thii page.
THE MONETARY TIMES
Volume 66.
NOTICE OF ASSIGNMENT
New Brunswick Supreme Court Lays Down Rule as to What
Constitutes Notice of Assignment of Claim to Hank
NOTICE of assignment sent to the solicitor of a company
is notice to the company, according to the decision of
the New Brunswick Supreme Court in the case of Bank of
Nova Scotia v. St. John and Quebec Railway. The material
facts of the case were as follows: —
On May 8, 1912, the Hibbard Company, Limited, entered
into a contract with the St. John and Quebec Railway Com-
pany for the construction of a line of railway between Fred-
ericton and Woodstock on the western side of the River
St. John. In the latter part of August, 1914, the company
was unable to pay the July estimates and no funds were
forthcoming to meet the contractor's obligations. The Hon.
George J. Clarke, premier of the province, then went to
Montreal and negotiated with the Hibbard Company to con-
tinue the work of construction. He represented that the
province would hand over to the contractors bonds of the
province or bonds of the railway company guaranteed by the
province, bearing interest at the I'ate of 4V2 per cent., less
a certain drawback of 10 per cent, to be paid over when the
work was completed, on the understanding that all estimates
were to be approved by the provincial engineer.
Bank Financed Work
In the course of the negotiations it was pointed out to
Mr. Clarke that such arrangements would be impossible
unless the company was able to finance upon the security
of the bonds, and Mr. Clarke consequently gave a letter to
the Bank of British North America setting forth what the
province would undertake to do, and the Bank of British
North America consented to supply the Hibbard Company
with the necessary funds from month to month to carry on
its work. The work on the railway went on until it was
completed in October, 1914, all payments that were made
being made to the bank in bonds of the railway company
guaranteed by the province. On January 16, 1916, the Hib-
bard Company gave an absolute power of attorney to a Mr.
Gall to act for it in making a full and final settlement with
the railway company, and a few days later Mr. Gall came
to a settlement with the company, concfding payment of
liabilities that the company had previously repudiated, and
diverting a considerable amount of money, over $17,000, to
the Imperial Bank upon his own account, leaving a balance
of a little less than $5,000 payable to the Hibbard Company,
and for which amount the railway's cheque was given.
The contention of the bank was that the government
and the railway company remained liable to the bank for
the balance of the advances made to secure the work, amount-
ing to a sum of $32,899, with interest; that of this amount
there had only been paid the sum of $4,902, the balance
arrived at in the settlement by Mr. Gall with the railway
company in January, 1916.
Court's Judgment
Hazen, C.J.. in his written judgment, says: "Chandler, J.,
having stated in his judgment as above that he eonsiderec;
that the assignment of the amount due to the Hibbard Com-
pany under their contract with the railway company to the
Bank of British North America wt>s a good and valid assign-
ment, held that the St. John and Quebec Railway Company
had notice of the assignment of the claim of the Hibbard
Company to the Bank of British North America, and that
such notice was given by the resolution passed by the Hib-
bard Company authorizing A. D. Gall to settle with the rail-
way company and the government of New Brunswick.
"In my opinion, therefore, the appeal should be dis-
missed with costs, and, in compliance with the judgment of
Chandler, J., the matter should be referred to a Master of
the Supreme Court to take an account of the amount due
by the Hibbard Company to the Bank of British Noi;th
America for loans and advances in connection with the con-
tract between the Hibbard Company and the St. John and
Quebec Railway Company, dated May 8, 1912, and that an
account should also be taken of the amount due from the St.
John and Quebec Railway Company to the Hibbard Company
under the contract above mentioned."
BRITISH COLUMBIA FISHERIES DISPUTE
In the British Columbia Supreme Court, on December 7,
the Banfield Fisheries, Ltd., made application for an injunc-
tion against certain Japanese fishermen to restrain the latter
from selling fish already packed at Ba;ifield without first
protecting the company, at the rate of $6 per ton of herring,
in accordance with a contract existing between the company
and the Japanese. R. C. Lowe, on behalf of the fishermen,
opposed the application on the grounds that the company had
not produced in court sufficient material to justify the learned
judge in granting it. Counsel, however, was willing to give
an undertaking in the name of his clients satisfactory to the
company, and on this understanding the application was
adjourned.
JUDGMENT REGARDING SALE OF SHARES
The Privy Council has dismissed with costs the appeal
of Rountree vs. J. L. Wood, of Ontario. The case was a
claim for the price of shares alleged to have been contracted
for purchase by the respondents from the appellant.
This was a suit brought by Meredith Rountree, of Mont-
real, against L. M. Wood, of Toronto, for $15,900, which was
the value plaintiff placed on shares granted him for under-
writing shares in the Royal Bank building at Toronto, in ad-
dition to a cash commission paid him. This was in 1913.
Rountree brought suit some time later to compel Wood to
buy these shares from him. There had been an agreement
to that effect, which was to expire at a certain date, but
the Court below held that there was a continuing agreement
and gave judgment in favor of the plaintiff for $13,000. This
stage of the case was reached in 1918. The Supreme Court
of Ontario unanimously reversed this judgment, with costs.
This decision was then appealed direct to the Privy
Council, who discussed the appeal and sustained the judg-
ment of the Ontario full Bench without calling upon the
respondent.
GRAND TRUNK CLAIM AGAINST U.S. GOVERNMENT
Arguments in mandamus proceedings brought by the
Grand Trunk Railroad against Secretary of the Treasury
Houston were listed for hearing on December 16, in the
district of Columbia Supreme Court. The secretary has been
notified to show cause why he should not pay the Grand
Trunk roads, operating in the United States, $500,000 under
the guarantee provision of the Transportation Act, giving
the carriers a 6 per cent, return up to September 1.
On the decision in this case, which has grown oiit of a
recent decision of Comptroller of thg Treasury Warwick,
that further payments to the railroads under the guarantee
provision of the act must be withheld until complete state-
ments are submitted by the roads of amounts due them,
depends the payment of more than $400,000,000. The car-
riers claim this is the balance the government owes them for
losses incurred during the guaranty period.
In the suit of John Begg, Limited, Scotch distillers,
brought against F. Edwards and Company, of Toronto, to
recover $7,806 due on certain bills of exchange, judgment
for the amount sought has been allowed by Justice Latch-
ford. A counter-claim of the defendants for $44,649 for pay-
ments alleged to have been made, or for $40,000 damages
for alleged breach of contract, was dismissed by the judge.
Janurry 14, 1921
THE MONETARY TIMES
iiMIMIIIIMIIIIIIIMMIIIIIIIIIIIIIIIIIinillllllllllllMIIIMinillllllMMIIIIMIIIIIIIIIIIIIIIIIIIIIIIIUIIinillllllMIIIMIIIIIUIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII^
I REPRESENTATIVE LEGAL FIRMS [
^IIIIIIIIIIIUlllllllllllUllllllinilllllllllllllllllllllllllllMMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIinMIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlllllllllllll^
BRANDON
J. p. Kitgo
jr. K.C. G. H.
R. H. McQueen
Poster
KILGOUR, FOSTER & McQUEEN |
Barritters
Solicitori, Etc.,
Brandon,
Man.
Solicitor
Royal Ban
and Loan
Assurance
s for the Bank of
k of Canada Hai
Society- North
Company.
Montrea
nilton Pro
America
. The
vident
1 Life
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barristers, Solicitors. Etc.
Solicitors for Bank of Montreal, The Trust
and Loan Co of Canada. British Canadian
Trust Co.. Stc, «c.
C. F. P. Conybeare. K.C, H W. Church. M.A.
R. R. Davidson. LL.B.
Lethbridge - - . ■ Alta.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAU BANK BUILDING
PRINCE ALBERT, SASK.
CALGARY
Charles F. Adams, K.C.
Bank of Montreal BIdg.
CALGARY - - ALTA.
W. P VV Lent Alex. B.Mackay. .M.A.. LL.B.
H. D. Mann. .MA. LL.B.
LENT, MACKAY & MANN
Burrlmrrii. sollcUofH. .'«olarle», tir.
305 Grain Kxchange BIdR . CalRary. Alberta
Cable Address. I.enjo." Western Union Code
Solicitors for The Standard Bank of Cunada.
The Northern Trusts Co. Associated Mort-
ease Investors. *c
J A. Wright. LL.B.
WRIGHT & WRIGHT
Barriiters, Solicilon. Sotaries, Etc.
Suite lO-lS Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. A.C. Rutherford. K.CLL.D.
P. C. Jamieson. I< C. Chas. H. Grant
S. H.McCuaiR Cecil Rutherford
RUTHERFORD, JAMIESON
& GRANT
Barrittert, Solicilors, Etc.
514-18 McLeod Bldg. Edmonton, Alberta
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE Alberta
MEDICINE HAT
C. F. H. Lo-i... LL.B. J. W. Slek.ht. HA.
LONG & SLEIGHT
Barristers, etc.
MEDICINE HAT and BROOKS, Alta.
MOOSE JAW
William Or
Grayson
iSoIicitor
Moose
ayson.K.C. T.J En.crson
Lester .McTaBKart
, Emerson & McTaggart
Barristers, Etc.
s-Bankof Montreal
Canadian Bank of Commerce
Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
REGINA
Gordon, Gordon, Keown
and Collins
Barristers, Solicitors, &c.
Aldon Building, REGINA, Sask.
Solicitors for Imperial Bank of Canada
SASKATOON
C. L. UUHIE. B.A. B. M. Wakelino
DURIE & WAKELING
Itarrlslrrs »ii<l .'Solieltors
Solicitors for the Bank of Hamilton. The
Great West Permanent Loan Co. The
Monarch Life Assurance Co.
Cnnnilii Itiilldlns Sa«k»loon, raiia<la
Ch.is. 0. Locke. Major J Mc..iughey.O.B.B.
LOCKE & McAUGHEY
Barristers, Solicitors, Etc.
208 Canada Building
SASKATOON - CANADA
VANCOUVER
R. L. Reid. K.C
las J.G.Gibson
BOWSER, REID, WALLBRIDGE
DOUGLAS & GIBSON
Barristers, Solicitors, Etc.
Solicitors for Bank of .Montreal (Bank of
British North America Branch)
Yorkibire Boildins, S2SSe;inoarSt., Vancoover, B.C.
WE SELL
Chauvin^Allsopp & Company, Limited
FARM LANDS
And other good property. EDMONTON DISTRICT.
VALUATORS
Ground Floor. McLeod Building - Edmonton. Alta.
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK, BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Elxchange
Calgary, Alta.
A. J. Pattison Jr. & Co.
Members
Toronto Stock Exchange .Montreal Stock Exchange
ties
Specialists Unlisted Secu
IDS BAY STREET
TORONTO
THE MONETARY TIMES
Volume 66
News of Industrial Development in Canada
Port Arthur to Participate Largely in the Pulp and Paper Trade During
the Coming Year — Wayagamack Plant Closed Down to Effect Repairs and
Readjustments — Steel Expert Anticipates Big Demand for Rails Will
Keep Steel Plants Busy — Textile Outlook Good, States Authority
TNDUSTRIAL announcements made during the first two
A weeks of 1921 would seem to indicate a ^nore promising
situation. Many plants which found it necessary to close
down in December have reopened. Some companies have
closed their factories, but in a good many cases such action
was taken to effect new changes and to bring about lower
wage scales.
In the pulp and paper field several interesting reports
have been issued. Port Arthur, Ont., it seems, will partici-
pate largely in the development of this industry during the
coming year. The Provincial Paper Mills, Ltd., announces
that, having secured a pulpwood limit of 1,220 square miles,
well timbered, in the Nipigon District, it will go ahead at
once with the construction of a paper mill and an addition
to its pulp mill, which has now a capacity of fifty tons per
day. Finances for the new undertaking have been arranged
by the authorization of an issue of three million dollars of
bonds, which, it is understood, is about the amount of ex-
penditure the construction will entail. Almost simultane-
ously John Stirrett and Sons, who procured the big plant
of the Port .Arthur Wagon Co., announce that Chicago
capitalists have financed a pulp mill of one hundred tons
per day capacity, and that establishment of this industry
will be commenced without delay. The Kaministiqua Pulp
and Paper Co. is issuing bonds to finance an increase in the
capacity of its plant from twenty-five to one hundred tons
per day. These three industries will make Port Arthur one
of the most important pulp and paper centres in the
Dominion.
The Wayagamack Pulp and Paper Co. has closed down
its plant at Three Rivers, Que., for a short period, in order
to effect repairs and to install new machinery.
The pulp mill of the Bathurst Lumber Co., Bathurst,
N.B., has shut down for an indefinite time, and many are
out of employment, although some of those laid off have
gone to the woods and others into the fishing industry.
The reason given for the shutdown is the lack of demand
for the output of the mills, a condition due to slack business
in various parts of the continent.
Business at the Chaudiere Paper Mills, Hull, Que., has
been resumed. The river level has risen considerably, and
this fact has resulted in the reopening of the paper, pulp
and sulphite mills. It is estimated that 500 men have gone
back to work during the past two weeks.
Nels Wilkander, of Stockholm, Sweden, was in British
Columbia recently studying pulp conditions. Mr. Wilkander,
who has been superintendent of the large pulp plant of the
Ohruiken Co. at Skellaftca, Sweden, for some years, and also
has been engaged in the lumber trade in his own country,
speaks favorably of the situation in Europe. He states
that, since the end of the war, the pulp trade in Northern
Europe has improved greatly. During the war conditions
were serious, but to-day the demand is increasing and prices
are high. Wages in Sweden also are very high, a laborer
in the woods receiving as much as twenty crowns ($4) a
day, which in Europe is a high wage.
Iron, Steel and Coal
Opinion was expressed in Sydney, N.S., recently by an
expert in the steel trade that following the stabilization of
wages and prices, orders for rails will be issued in Canada
that will tax the Dominion iron and steel plants to capacity.
Virtually no rails have been manufactured in Canada for
six years. The railway mileage in the Dominion is not far
short of 40,000 miles. As the life of a rail is about ten
years, on a reasonable estimate there should be a replace-
ment of one-tenth of the total mileage per annum. ■ This
means that in normal times to supply wastage 400,000 tons
of rails should be furnished each year. At the present time
there is an arrearage to overtake of more than two million
tons, in addition to the 400,000 tons per year, ordinary wear
and tear.
Steel ship building on the British Columbia coast shows
a larger deadweight tonnage of production for 1920 than
for the preceding year. In 1919, steel vessels reached 70,200
dead-weight tonnage, while in 1920 the output of British
Columbia coast yards was 83,000 steel tons. Included in
this year's construction are five freighters for the Canadian
Government Merchant Marine, Ltd. Twelve vessels were
launched.
The coal trade in Nova Scotia is not running quite at
normal, and there is some trouble regarding the wages of
miners. The depression in the coal trade has affected the
smaller operators to a greater extent that the larger com-
panies, and in order to work their collieries the smaller com-
panies must ask a reduction in wages or close down the
mines until the coal trade again resumes its normal brisk-
ness.
Notices indicating a 20 per cent, reduction in all wages,
effective on and after January 17, were posted at the Do-
minion Steel Co.'s plant at Sydney, N.S., on January 8.
This reduction applies only to the steel plant and does not
affect the coal miners or those employed on the Louisburg
Railway, also controlled by the corporation.
Textile Outlook Good
In the words of an authority, the outlook for the textile
industry is good. A. O. Dawson, managing director of the
Canadian Cottons, Ltd., has expressed the opinion that there
will be steady improvement from now on. He points out
that whereas a large number of American mills have had to
close down altogether, Canadian Cottons had been able to
run on with only a slight curtailment in some of their mills.
During the past two weeks a number of plants, which
closed down previous to the Christmas holidays, reopened
again. The Atlantic Sugar Refineries at St. John, N.B., com-
menced operations, with men working on a lower wage scale.
The Perth Shoe Co., of Perth, Ont., will open on Janu-
ary 17, indicating a revival in the boot and shoe trade.
At Lauzon, Que., the Davis Shipyards resumed opera-
tions, and on January 10, two hundred men were given jobs.
It is expected that gradually full operations will be resumed.
At Stratford, Ont., the employment situation has be-
come brighter, with three factories reopening after a shut-
down of some weeks. The factories are: The McLagan
Furniture Co., the Stratford Chair Co., and the Globe-Wer-
nicker Co.
Most of the industries of Kitchener, Ont., which closed
down previous to the Christmas holidays, have resumed
operations again.
The Maritime Nail Works, St. John, N.B., has closed
down its plant, and will open again as soon as the men are
ready to accept lower wages.
The Billings and Spencer foundry of Welland, Ont., has
terminated operations temporarily for a readjustment of
business.
The National Fibre Products Co., Ltd., has just pur-
chased a plant in the town of St. Romuald, Que., and plans
January 14, 1921
THE MONETARY TIMES
45
The Imperial
Guarantee and Accident
Insurance Company
of Canada
Head Office, 46 KING ST. WEST, TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plaie Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital
Authorized Capital
Subscribed Capital
Government Deposits
$■-'00,000.00
$1,000,000.00
$l,00f),000.00
$lll,000.0fi
L/^MFIOINI GUARANTEE
V-' A^ •■-' ^-' i^ ACCIDENT COY., Li
Head Office for Canada
AND
mited
Toronto
Employers' t.iability, Elevator. Contract. Personal Accident. Fidelil
Guarantee, Internal Revenue. Sickness. Court Bonds,
Teams and Automobile.
AND FIRE INSURANCE
The Western Mutual Fire
Insurance Co.
Head Office
Didsbury, Alberta
President-
-H. B. ATKINS
M.L.A.
PARKER K. REEU.
LARGEST ALBERTA
.V.JItaeine Direclar
FIRB MUTUAL
CANADIAN STRONG PROGRESSIVE
A fii»s&mvmiiime:9<6m99iffst
FIRE INSURANCE
AT TARIFF RATES
Merchants Casualty Co.
Head Office : Winnipeg, Man.
The most progressive company in Canada. Operating under the
supervision of tne Dominion and Provincial Insurance Departments.
Embracing the entire Dominion of Canada.
SALESMEN NOTE!
Our accident and health policy is the most liberal protection oft'ered
for a premium of $l.(>0 per month and up.
Covers over 2.500 different diseases.
Pays for Life if disabled through Accident or
llness.
Fifty per cent extra if confined to hospital.
Pays for Accidental Death. Quarantine, bur-
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Beneficiary and children of the Insured.
Good Openings for Live Agent*
Eastern Head Office, Royal Bank Bldg.. Toronto
Home OfHce Electric Railway Chambers.
Winnipeg. Man.
Commercial Union Assurance Co.
Limited, of London, England
Capital Fully Subscribed 8 14,750,000
Capital Paid Vp 7,375,000
Total Annual Income Exceeds "5,000,000
Total Funds Exceed 209,000,000
llriKl onirr Cnuaillan Brancta :
COMMERCIAL UNION BUILDING - MONTREAL
H ALBERT J. KERR, Assistant .MANiOBR. W. S. JOPLIHG. Managkr
Toronto Office - 49 Wellington Street East
OBO. K. HARORAFT. General Agent for Toronto and County of York
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ATTRACTIVE AGENCY CONTRACTS
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82-88 King Street East, Toronto
GENERAL
ACCIDENT FIRE AND LIFE
ASSURANCE CORPORATION, LIMITED, OF PERTH, SCOTLAND
PELBO HOWLAND, THOS. H. HALL,
Canadian Advisory Director Manager for Canada
Toronto Agents, E. L. McLBAN. LIMITED
FARMERS'
FIRE & HAIL INSURANCE COMPANY
FIRE, HAIL AND AUTOMOBILE INSURANCE
Head Office, CALGARY. Saikatcbewan Office, REGINA
M. P. JOHNSTON. Managing Director
46
THE MONETARY TIMES
Volume 66.
to begin operations about the middle of February. Fifty
men will be given employment at the outset, but it is ex-
pected that by the month of May next 150 men will be re-
quired to operate the plant.
The Milton worsted yarn spinning mills, the new in-
dustry owned by the Bob Long Co., of Toronto, which has
been installing $10,000 worth of new machinery in its
factory at Milton, Ont., formerly owned by the L. Syer
Carpet Co., is now ready to begin operations.
Arrangements are under way to enlarge the plant of
the Tuttle-Bailey Manufacturing Co., Bridgeburg, Ont. The
company manufactures registers here. Its headquarters are
located in New York City.
The Bedford, Que., branch of the Torrington Needle Co.
has made a cut of twenty per cent, in salaries and wages
of employees, effective at once. The factory is still running
full time.
A cable from London, England, announces the incor-
poration of Shawinigan, Ltd., a new organization for the de-
velopment of Canadian export trade. The corporation, which
is financed by Montreal and English interests, includes many
financiers in both countries. It will deal in the products of
the great electro-chemical centre, Shawinigan Falls, Quebec,
having the sole right to sell these in the United Kingdom
and Europe.
NEW INCORPORATIONS
Harrison Lumber and Pulp Co., Ltd., $1.5.000,000— L. H. Tim-
mins. Inc., S5.000.000— N. A. Timmins. Inc., $.5,000,000—
Pembroke Lumber Co., Ltd., $2,000,000
The following is a list of companies recently incorporated
under Dominion charter, with the head office and authorized
capital: —
Fromson Co. of Canada, Ltd., Montreal, $100,000; Turn-
bull Elevator Co., Ltd., Toronto, $1,000,000; Fin&nce and De-
velopment, Ltd., Toronto, $500,000; McConnell and Fergus-
son, Ltd., London, $400,000; Wynnstay, Ltd., Hamilton, $40,-
000; Pioneer Products of Canada, Ltd., Montreal, $100,000;
National Picture Frame and Art Co., Ltd., Toronto, $100,000;
Draper Manufacturing Co. of Canada; Ltd., Petrolia, $50,000;
Pierre J. LeMay et Cie, Litee., Montreal, $49,000; Exclusive
Hat Co., Ltd., Montreal, $100,000; Canadian Loader and Body,
Ltd., Montreal, .$200,000; Rice and Fielding, Ltd., $10,000;
Montreal, Eureka Coal Mining Co., Ltd., Winnipeg, $250,000,
Western Sales Book Co., Ltd., Toronto, $350,000; Canadian
Vitex Feed and Milling Co., Ltd., Toronto, $1,000,000; Mc-
Naught Lumber Co., Ltd., Chaple^.u, Ont., $400,000; Ans;ln-
Canadian Comedies, Ltd., Toronto, $50,000; Hamilton Sales
Co., Ltd., Hamilton, $50,000; Cosmos Finance Corp., Ltd.,
Montreal, $10,000; Pembroke Lumber Co., Ltd., Montreal,
$2,000,000; Manufacturers' Canadian Service, Ltd., Mont-
real, $75,000; Naidanac Securities Corp., Ltd., Montreal, $25,-
000.
Provincial Charters
The following is a list of companies recently incorporated
under provincial charter:—
Alberta.- Empire Liquor Co., Ltd., Lethbridge, $20,000;
Mayfair Gold and Country Club Co., Ltd., Edmonton, $.30,000;
W. M. Harris Agency, Ltd., Lethbridge, $10,000; Monarch
Investment Co., Ltd., Edmonton, $50,000; Bow River Cattle
Co., Ltd., Taber, $200,000; Norwoods, Ltd., Edmonton, $20,-
000; Big VaJley Athletic Assoc, Ltd., Big Valley, $10,000;
Henningsen's, Ltd., Edmonton, $20,000; Full-Ton Coal Sales
and Development, Ltd., Calgary, $50,000; N. S. McDonald
and Co., Ltd., Edmonton, $20,000; Loggie's, Ltd., Calgary,
$24,000; Three Hills Hotel, Ltd., Three Hills, $15,000; Baker-
Sykes Co., Ltd., Calgary, $35,000; Colgrove Land Co., Ltd.,
Calgary, $20,000; Bateman Bros., Ltd., Bow Island, $20,000;
Bruce-Stewart Co., Ltd., Edmonton, $20,000.
British Columbia. — Woodley Manufacturing Co., Ltd.,
Vancouver, $10,000; Lulu Island Lands, Ltd., Vancouver,
$20,000; Boultbee, Ltd., Vancouver, $75,000; P. B. An-
derson, Ltd., Vancouver, $250,000; Stewart Saw Mills,
Ltd., Vancouver, $20,000; Champion a^nd White, Ltd.,
Vancouver, $750,000; N. M. and R. Canning Co., Ltd.,
Prince Rupert, $100,000; Western Farm Products, Ltd., Van-
couver, $250,000; Victoria Bed and Mattress Co., Ltd., Vic-
toria, $100,000; Macdonald Shell Fish Co., Ltd., Vancouver,
$25,000; Canadian Window Bakeries, Ltd., Vancouver, $50,-
000; Bungalow Club, Ltd., South Vancouver, $25,000; Cylin-
der Grinders, Ltd., Vancouver, $10,000; Kameo Shingle Co.,
Ltd., Vancouver, $50,000; Kingsway Club, Ltd., South Van-
couver, $25,000; Harrison Lumber and -Pulp Co., Ltd., Van-
couver, $15,000,000; Spruce Specialties, Ltd., Vancouver,
$10,000.
Manitoba. — General Specialty Sales, Ltd., Winnipeg,
$30,000.
New Brunswick. — McPhail Hardware Co., Ltd., Perth,
$9,900; Fundy Fisheries, Ltd., St. George, $100,000.
Ontario. — St. Patrick's Professional Hockey Club, Ltd.,
Toronto, $40,000; Adams, Ltd., Toronto, $40,000; Queen City
Furniture Co., Ltd., Toronto, $100,000; Challenge Auto Ac-
cessories, Ltd., Toronto, $250,000; Canadian Top and Body
Corp., Ltd., Fort Erie, $100,000; Russell Drug Store, Ltd.,
Ottawa, $19,500; Ruby Operative Cobalt Mines, Ltd., Cobalt,
$1,500,000; Erie Clay Products, Ltd., Port Dover, $8,000; Lon-
don Co-opera^tive Stores, Ltd., London, $25,000; Scroggins
Show Co., Ltd., Gait, $40,000; Minden's, Ltd., Hamilton, $40,-
000; Northern Hotels, Ltd., Toronto, $150,000; Western Oil
Co., Ltd., St. Catharines, $500,000; Canadian Pozzolana Co.,
Ltd., Toronto, $50,000; Hugh C. MacLean Publication, Ltd.,
Toronto, $1,000,000; Equator Manufacturing Co., Ltd., Ham-
ilton, $40,000; Atlas Securities, Ltd., Toronto, $40,000; Essex
Coal Co., Ltd., Windsor, $30,000; Empire Shoe and Slipper
Manufr.-cturing Co., Ltd., Toronto, $40,000; St. Catharines
Housing Co., Ltd., St. Catharines, $250,000; La Cloche Island
Co., Ltd., Little Current, $1,000,000; 'Scotia Trading Corp.,
Ltd., Toronto, $2,000,000; J. G. McGuire, Ltd., Ottawa, $60,-
000; Printers' Guild, Ltd., Toronto, $40,000; F. R. Maxwell
Co., Ltd., Toronto, $40,000; Ryan and Hughes, Ltd., Toronto,
$100,000; Martin and Henderson, Ltd., Toronto, $40,000; Ap-
pliances, Ltd., Toronto, $25,000.
Quebec. — Harvey and Girard, Ltd., St. Joseph d'Alma,
$20,000; Kashin The&tres, Ltd., Montreal, $75,000; L. H. Tim-
mins, Inc., Montreal, $5,000,000; N. A. Timmins, Inc., Mont-
real, $5,000,000; Z. Auerbach and Co., Montreal, $99,000-;
Robinson's, Ltd., Montreal, $49,000; Quebec Machinery and
Supply Co., Ltd., Quebec, $20,000; Club des Journalistes de
Montreal, Montreal, $20,000; H. J. Nebach Co., Ltd., Mont-
real, $40,000; Dominion Lumber Co., Ltd., Quebec, $20,000;
Routhier and Perron, Ltd., Sherbrooke, $45,000; H. Lovell
and Sons, Ltd., Coaticook, $250,000; Beaver Glove Works,
Inc., Montreal, $75,000; Beaver SocifJ Club, Montreal, $5,000;
Knowlton Golf Club, Knowlton, $1,000.
Saskatchewan. — Johnston Bros. Grain and Feed Co., Ltd.,
Webb, $150,000; Continental Transport Co., Ltd., Regina,
$20,000; United Oils and Chemicals, Ltd., Regina, $20,000;
Swan Valley Lumber Co., Ltd., Yorkton, $100,000; Moose Jaw-
Printing Co., Ltd., Moose Jaw, $50,000; W. P. Kirkpatrick
Co. (Insurance), Ltd., Saskr.toon, $20,000; Agler Body Co.,
Ltd., Prince Albert, $20,000.
WOODSTOCK PLANS NEW TRADE ORGANIZATION
Woodstock, Ont., may have a chamber of commerce to
take the place of the present board of trade. Major Ca^rson,
of the Canadian City Bui^au, Toronto, has interested mem-
bers of the board of trade and city council, and already a
committee has been appointed to investigate the det&ils of
the proposal. The plan as outlined would increase the mem-
bership fee from $5 to $25 and the members would be signed
up on a three-years' contract. This would place the chamber
on such a financial basis that a paid secretary with an up-
town office could be maintained.
Januf..ry 14, 1921
THE MONETARY TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE, $133,000,000.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL AP-
PROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American
has lived up to its mottj "Solid as the Continent." Insur
in Force. Assets and Net Surplus all show a steady and
manent increase each year. To-day the Financial pos
of the Company is unexcelled.
1921 promises to be bigger and better than any
heretofore. It you are looking for a new connection, '
us. We take our agents into our confidence and offer
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID .A.S THE CONTINENT"
HEAD OFFICE TORONTO
Life
ance
year
vrite
you
Important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE • WINNIPEG. MAN.
Assurances. New and Revived
Premiums on same
Assurances in Force
Total Premium Income -
Policy Reserves
Admitted Assets
Average Policy
81.211,447.00
4.3,890.00
3,458,939.00
109,586.03
211,497.00
296,430.62
2,237,50
Collecteil ill cash per 81,000 insurance in force 31.75
For particulars of a good agency apply to
ADAM REID, Managing Director - Winnipeg.
Insuring the Motive Power
(preferably) separate politics wu mv ..v^a v^. ...^ ..,«.....««, k«
favor of the -urvivors are issued liy The .Mutual Life of Canada. .. „,..
be the object of the Company to adapt each Business Policy to the parti-
cular requirements of the insuring firm. Consult our representative.
He will he bI:uI to advise sou resardiug business insurance.
The Mutual Life Assurance Co. of Canada
Waterloo
HUME CKONYN. MP,,
Ontario
CO-OPERATIVE SERVICE
'PO I'ohcyhiiluers lictwcen ihu Company and the /IKcntS is the Secret of Our
'■ success. Bvcry ri prcsentative is given the utmost assistance, but he
must look after *>i'r clients' interests. During the last il years The CootineDlal
Life has built an enviable reputation for prcmpt payment of claims.
Write for booldet. "'Mir llrit AllTJrllHf r»." Por Managers positions in On-
t.irio .ipply wiih r.;feiences, stilting exp.'ricnce. etc., to !«. S. MKAVEK.
Kiitterii .Siipi'rlMK'iiilriii, al lirntl otUri-
THE CONTINENTAL LIFE INSURANCE CO.
Head Office TORONTO, ONTARIO
ENDOWMENTS AT LIFE RATES
ISSIKI) ONLY HV
THE LONDON LIFE INSURANCE CO.
Head Office ... LONDON, CANADA
Profit Results in this Companjr 70°' better than Estimates.
POLICIES GOOD AS GOLD."
WITHIN
the last few years the business world seems to have discovered
that Life Insurance can be made just as useful in the protection
of business as in protecting ihe home.
The Great-West Life is writing a very laige " Commeicial"
Business.
Such business is in itself a strong endorsement It involves the
strictest scrutiny — the most careful weighing of Policy conditions.
For THE BEST available in Life Insurance, corporations and
individuals can find no Policies to equal those of
THE GREAT- WEST LIFE ASSURANCE COMPANY
1)1-. I'T. " K"
HEAD OFFICE - - - WINNIPEG
Ouer $255,000,000 now in force.
The Western Empire
Life Assurance Company
Head Oitice : 701 Somerset Building, Winnipeg, Man.
SASKATOON
Bkas
CALGARY
Oppicbs
EDMONTON
VANCOUVER
Queensland Insurance Co. Limited
of Sydney, N.S.W.
Cipital Paid Up $1,750,000 Assets $4,015,811
■igrmts Want0ii la Umrtpnumttd District!
Montreal Agencies Limited
Montreal
Moose Jaw, Saskatchewan
STOCKS AND BONDS
INSURANCE
FARM LANDS AND PROPERTY MANAGERS
KERN AGENCIES
LIMITED
Private Wires to " INNIPEG. CHICAGC. TORONTO.
MONTREAL AND NEW VOKK
THE MONETARY TIMES
Volume 6P
News of Municipal Finance
Metropolitan Commission of Montreal Has Wide Powers — Winnipeg and Water District
Have Large Amount of Refunding to do During Next Six Years— Sandwich Has Deficit
in 1920 — Walkerville Assessment Increased — South Vancouver Debt Greatly Reduced
South Vancouver, B.C. — During the eleven months ended
November 150, 1920, the debt of the municipality was re-
duced $407,002. Of this substantial reduction $170,213 was
made possible through current receipts since December 31,
1919.
St. Catharines, Ont. — The 1920 council closed the year
with an overdraft of $3,944, which is the smallest in recent
years. The tentative budget for 1921 shows that the tax rate,
because of the increased assessment, can be reduced from
38.2 to 35.2 mills.
Pictou County, N.S. — At a gathering of councillors at
Stellarton recently, a resolution was passed, asking authority
from the councillors of the various municipalities in the
county to investigate the possibilities of introducing hydro-
electric in the county.
Cobalt, Ont. — The financial statement of the town
treasurer, which has just been issued, shows current liabili-
ties of $27,260, as against liquid assets of $32,308, including
an item of $17,791 of uncollected taxes. Only one debenture
issue of $6,500 is shown as being outstanding.
Walkerville, Ont. — Property in the town for 1920 is
assessed at $8,701,580, according to the financial statement
i-ecently issued. This figure represents an increase over the
previous year of $2,147,496. The total assessed valuation is
placed at $9,395,821, but there are exemptions to the extent
of $694,241.
Sandwich, Ont. — The annual financial statement of the
tovm for 1920 shows total assets of $87,198, as against total
liabilities of $81,546. Arrears of taxes are shown at $62,-
119, while liabilities to the bank amount to $41,824. Ex-
penditures during the year amounted to $329,358, as against
revenue of $295,237.
Victoria, B.C. — During 1920, according to Aid. Sargent,
chairman of the finance committee, in his statement, the sum
of $709,724 in matured bonds was paid off. Point Allice
accident bonds to the amount of $49,000, which would not
have matured until 1925, were purchased, as well as $5,000
in school loan bonds, maturing in 1943, so that a total of
$763,724 of city indebtedness was cancelled during the year.
Against this, Victoria bonds totalling $214,698 were issued,
so that the net reduction for the year was $549,026. Aid.
Sargent points out that in the repurchase of $54,000 in un-
matured city bonds a substantial saving was made, the price
paid ranging from 93 to 76 Va cents on the dollar. The in-
terest for the balance of the period will not have to be paid,
as the bonds now being issued are of the serial variety.
Toronto, Ont. — Gross assessment for 1921, according to
the annual report of Assessment Commissioner Forman, is
given as $703,646,395, an increase of $62,092,239 over the re-
vised figures of last year, or 9.69 per cent. The greatest in-
crease was in income assessments, which advanced $14,595,-
749, or 35.57 per cent. The assessment of the city has in-
creased in the past twenty years at a rapid rate. In 1901 the
total assessment was $128,271,583, in 1911 it was $306,751,-
673, and at present it is $703,646,395. These figures reveal
an increase of 499 per cent, in twenty years, and of about
130 per cent. ■ within the last ten years. During the same
period the population has increased from 199,043 in 1900
to 512,812, or an increase of 313,796 in the twenty-year
period, Satisfactory as this appears on the surface, the
fact remains the population has not kept pace with the mar-
vellous increase in assessments. The total value of real pro-
perty owned by the city, including that held by the Educa-
tionBoard, is $50,108,661.
Winnipeg, Man. — The city of Winnipeg and the Greater
Winnipeg Water district will be required to re-finance within
the next six years $17,000,000 of their bonded liabilities.
H. C. Thompson, city treasurer, announced at a dinner
tendered by Mayor Parnell to council members, department
heads and newspapermen last week. The city pays $3,000,-
000 a year for interest and sinking fund demands on its
gross debt of $43,500,000, while the Water District pays
$1,160,000 on its debt of $16,200,000.
Against the city's liabilities, the sinking fund has
assets of $12,000,000, and last year rolled up a surplus of
$530,000, according to the information advanced. The fund
trustees gradually are paying many old debts for which
former councils made no provision, including $120,000 on ex-
hibition buildings that were torn down last year.
The gross per capita debt of Winnipeg is $235 as com-
pared with per capita debts ranging from $200 to $560 of
other cities. The gross civic debt includes the capital liabili-
ties of the self-supporting utilities. Mr. Thompson also an-
nounced that $8,000,000 worth of bonds were sold last year
at the best prices, thereby saving the city large sums of
money.
Montreal, Que. — Although a separate measure from the
city charter, the bill incorporating the Metropolitan Commis-
sion of the Island of Montreal is likely to be considered
jointly with it, and may, perhaps, form the basis of a new
system of government for Montreal. It provides for the
system of financial control and of consolidation of funded in-
debtedness for the city and other municipalities of the
island, and also for control regarding the planning and
carrying out of general works. On the whole it contains
fifty-five clauses, and is drafted on the procedure of the
London Council.
The bill provides that the existing capital indebtedness
of all municipalities within its jurisdiction shall be con-
solidated and the administration thereof transferred to the
commission on a fixed date. The commission shall have the
power to regulate and control all plants or proposals for the
opening and constructing of all highways, roads, streets and
drains affecting more than one municipality and shall see to
it where necessary the roads and drains of contiguous muni-
cipalities properly connect with each other. It shall also
control and regulate all public works and improvements
affecting more than one municipality, and shall cause a sur-
vey of the island to be made and a general plan prepared
indicating the location, lines and direction along which any
trunk highways shall be constructed as and when such
"highways may be required for future developments, and
such plan shall be binding upon all municipal authorities and
persons making sub-divisions of building lots on the island.
Provision is also made that no municipality on the
island shall grant, extend or renew any public utility or
other franchise or privilege without the approval of the
commission, nor shall it grant any exemption from taxation
without such approval. No annexation of one municipality
or territory within the jurisdiction of the commission shall
be binding or effective without the previous written approval
of the commission, and such approval shall not be granted
unless and until the by-law proposing such annexation has
been approved by a majority both in number and value of
the ratepayers of the territories concerned according to a
vote taken by referendum.
The commission will have the power to raise loans and
also issue Montreal Island District notes, in anticipation of
the negotiation of permanent loans or taxes receivable but
not yet paid, for not longer than twelve months, but these
are renewable from time to time. Provision is made for the
holding of a public inquiry into the necessity or desirability
of any proposed works undertaken by a municipality, with
an appeal to the lieutenant-governor in council.
Janua-ry 14, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
|1chisserV\^oo>^°G>mpany
INVESTMENT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
STOCKS AND BONDS
Canadian, British and American Securities
Bought and Sold on all Principal Exchanges
Prieale win connccliom wilh Sew York and Toronto.
OSLER, HAMMOND & NANTON
WINNIPEG
NEW ISSUE
CITY OF TORONTO
5i% BONDS
Maturing 1921-1930
TO YIELD 6.60%-6.70%
Harris, Forbes & Company
INCORPORATKD
C. P. R. Building 21 St. John Street
TORONTO MONTREAL
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur BIdg., WINNIPEG, Canada
Members of Winnipeg Real Estate Elxchange. Winnipeg Stock Exchange
C. H. BURGESS & CO.
Government and
Municipal Bonds
14 King Street East
Toronto
WINSLOW & COMPANY
Stock and Bond Brokers
GOVERNMENT AND
MUNICIPAL BONDS
INDUSTRIAL SECURITIES
300 Nanton Building, Winnipeg
Exceptional —
— both for safety of principal and surety of
return is this
7% Canadian Industrial Bond
with a bonus of Common Stock payable in New
York funds.
Ask us for full particulars
R. M. HEFFERNAN & CO., Limited
INVESTMENT BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
T Fl E MONETARY TIMES
Volume 66.
Government and Municipal Bond Market
Victory Loan Issues Move Upward — Municipal Prices Also Firmer — Good Demand for
Securities as Evidenced by Keen Bidding — Alberta to Borrow Two Millions — Manitoba
Bonds Sold Across the Line to Yield the Investor 7.40 Per Cent. — London Makes New Loan
THE change which has come over the government and munici-
pal bond market during the past two weeks would seem
to indicate that the upward movement is on the way. Prices
of municipals have firmed considerably, and the keen bidding
on several of the new issues brought out seems to be a fair
illustration of the increased demand for such securities.
The best illustration of the trend of the market is the
movement of Victory bond prices. All government issues
have moved upward, and are now at levels, which in the
opinion of some circles are not in accordance with funda-
mental conditions. Sentiment is boosting the market a
little higher than it really should go, and in view of this
fact it is reasonable to expect some downward fluctuations
before the market really stays up.
The following figures show the trend of Victory loan
issue in recent weeks: —
Control
price.
1922 98
1927 97
1937 98
1923 98
1933 961/2
1924 97
1934 93
Week ended
Dec. 29, '20.
High. Low.
Two weeks ■
end Jan. 12, '21.
97%
96
98 Vs
97
95%
94%
92%
96 y*
95
97
95%
94 Vz
931/2
92
High.
981/4
98
99%
97%-
98%
97%
961/8
Low.
97
95%
96%
95
95
94%
92%
Irrigation Bonds Not Sold '
There were no tenders for the $5,400,000 7 per cent.
30-year bonds of the Lethbridge Northern Irrigation District,
so that it looks as though further guarantees must be
obtained from the province of Alberta, if the securities are
to be disposed of and work on the district got under way.
It is likely that the trustees of the district will now approach
the provincial government and endeavor to secure the
assistance necessary to enable the bonds to be disposed of.
The bonds which were offered carried a two-year in-
terest guaraijtee of the provincial government. At the time
the bill affording this guarantee was passed by the legis-
lature, an effort was made to have the province guarantee
the bonds fully as to principal and interest. Premier Stewart
declined to go to such lengths with the first irrigation bond
issue. He wanted to see what effect the two-year interest
guarantee would have in making the bonds attractive to
buyers. However, he stated in the house at the time that
if the guarantee as given did not produce results in selling
the securities, then the district was to come back to the
legislature and ask further aid.
Premier Stewai't, while still adverse to the commitment
of the province to a financial responsibility such as that
involved in the large scheme, admits that the government
will have to face the question sooner or later, and he will
not be surprised if it comes up at this next session. There
is still an opportunity of securing financial co-operation from
Ottawa, and the advocates of irrigation development are
anxious that the provincial authorities make approaches in
that direction.
Money By-laws Passed or Defeated
The following money by-laws were passed by the rate-
payers at the January elections: —
Municipality. Amount. Purpose.
St. Thomas, Ont.. .$ 233,000 Concrete dam.
Brantford, Ont. . . 299,000 School and waterworks.
Scarboro. Ont. . . . 25,000 Township cemetery.
, Municipality. Amount. Purpose.
Mimico, Ont 37,000 Public park and school site.
Hamilton, Ont. . . . 300,000 For nurses home.
London, Ont 100,000 Hospitals.
Peterboro, Ont. . . . 350,000 Filtration plant.
Windsor, Ont 225,000 Asphalt plant and police sta-
tion.
Gait, Ont 55,000 Hospital additions.
St. Catharines, Ont. 35,000 Cemetery annex.
Waterloo, Ont. . . . 9,500 Hospital.
Sarnia, Ont 10,200 Sewers.
By-laws defeated at the January elections were: —
Fenelon Falls, Ont.$ 20,000 Fire truck.
Sarnia, Ont 94,000 Waterworks.
Brantford, Ont. . . 185,000 Collegiate
Hamilton, Ont 7,314,000 Hospitals, roadway and mu-
nicipal gas plant.
Kitchener, Ont. . . . 37,800 Power house.
London, Ont 100,000 Motor bus system.
Guelph, Ont ' 50,000 Improvements to park.
for sale,
previous
Borrower.
Kamsack, Sask. .
Barton Tp., Ont.
York Tp., Ont. . .
Alberta Province
Kenogami, Que. .
Gladstone, Man. .
Amount.
? 13,400
23,744
262,000
2,000,000
80,000
11,000
Regina P.S.D., Sask. 250,000
Coming Offerings
The following is a list of debentures offered
particulars of which have been given in this or
issues: —
Tenders
ate % ■ Maturity. close.
7 15-instal
6 Various Jan. 17
6 10 & 20-years Jan. 17
6 10-years Jan. 17.
6 5-years Jan. 25
6 20-years Feb. 1
6% 30-years Feb. 1
Kamsack, Sask. — The town is offering for sale $13,400 7
per cent. 15-instalment debentures. (See advertisement else-
where in this issue).
York Township, Ont. — Tenders will be considered on
January 17, 1921, for $262,000 6 per cent. 10 and 20-year de-
bentures. The proceeds of the issue will be used for water-
works and schools.
Kenogami. Que. — Tenders will be received until Janu-
ary 25, 1921. for the purchase of $80,000 6 per cent, bonds
dated December 1, 1920, and redeemable December 1, 1925.
Securities are in denominations of $100 and $500. A. Roche,
secretary-treasurer.
Regina P.S.D., Sask. — Tenders will be received until
February 1, 1921, for the purchase of $250,000 61/2 per cent.
30-year debentures. Securities will be payable in Canada
only, or in Canada and New York, at the option of the holder.
(See advertisement elsewhere in this issue).
Gladstone, Man. — Tenders will be received up till Febru-
ary 1, 1921, for the purchase of $11,000 6 per cent. 20-year
debentures, dated January 1, 1921. Securities are in de-
nominations of $100, and the interest is guaranteed by the
province of Manitoba. — S. Schooley, secretary-treasurer.
Barton Township, Ont. — Tenders will be opened on
January 17. 1921, for the following 6 per cent, debentures: —
$6,185.99 20 years, for sidewalks; $11,557.56 10-years, for
roads; $6,000 3-years, for road machinery. (See advertise-
ment elsewhere in this issue).
Albfrta. — The province is calling for tenders until Janu-
ary 17, 1921, for the purchase of $2,000,000 6 per cent. 10-
year gold bonds. Proceeds of the issue will be used for
Janufry 14, 1921
THE MONETARY TIMES
51
Reinvest
Your January Funds
Bond interest and dividends due Janu-
ary 1st, as well as payments of principal
due on that day, will be best employed
when invested in Canadian Government
and Municipal Bonds.
These bonds afford unquestioned secur-
ity, and no investment permits of more
convenient collection of interest.
At existing prices, from 6.20% to 7''o inter-
est can be obtained from these bonds.
Write for a list.
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg' London. Kng.
jl^m^^Ei^mm
IKVESTNENT- SERVICE
Western Power
Company of Canada
Bondholders will be interested in
an analysis of the excellent position
of their security holdings, given in
the Supplement to the current issue
of Investment Items.
The effect of the guarantee of the
Bonds by British Columbia Electric
Railway Company is fully explained.
Holders of Western Power Com-
pany of Canada securities should
write for a copy of the issue to-day.
Royal Securities
^ ^CORPORATION
LIMITED
MONTREAL
TORONTO HALIFAX ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. Eng.
Mi,L^^J^^KJL!MJ£JAm}AJJJJJ.^^^^^^.i.S^^^^^J^^:SX&^
W. L. McKINNON
DEA.V H. PUTTES
We Buy and Sell
VICTORY BONDS
W. L.
at Current Prices
McKINNON & CO.
Coveinment and Municipal Bonds
McKINNON
BUILDING -:■ TORONTO
Telephone Adelaide 3870
■minnDiminiiiiiiiiiiiiimiiniiiiiiiiiiiiiiimiiMiiiiiOiiMiiiw
RE-INVEST YOUR
JANUARY
Interest and Dividends
GOVERNMENT, PROVINCIAL and
MUNICIPAL BONDS
These Securities represent the safest
form of investment. We have a choice
selection of such bonds to offer.
Telephone, Call or Write.
W. A. MACKENZIE & CO.
Covcrnmcnl atiJ MuniciDal Bonds
42 King St. West
TORONTO -:- CANADA
^iiiMiiniiiiiiiiiiMiiiiiiiiiiiiiiiiiiiMniiiiiiiiii
52
THE MONETARY TIMES
Volume 66.
general public purposes and for improvement of railways
under the control of the province. The two million dollars
will be divided evenly for these two purposes.
Debenture Notes
Toronto, Ont. — The citiy council has approved the appli-
cation of the Board of Education for a- debenture issue of
$930,000.
Havelock. Ont.— The village is offering $28,890 6 per
cent, serial debentures, maturing from 1921 to 1940, to local
investors at par.
Edmonds, B.C. — Ratepayers will probably be asked to
vote on a $00,000 school by-law at the forthcoming municipal
elections. If so, this will be the only money by-law to be
sanctioned this year.
Chatham, Ont. — City Treasurer Cottier advises The
Monetary '/'iinrs that early in Januai-y the city will make an
issue of $80,000 6 per cent. 15-year waterworks extension!
debentures. The securities will be sold locally.
London, Ont. — At a meeting of the local housing com-
mission, E. F. Denison, chairman, stated that he had com-
pleted nece-ssary arrangements for a loan necessary for a
$500,000 building program for London in 1921.
Fredericton, N.B.— The city will ask authority from the
legislature to issue $50,000 bonds for the improvement of the
Victoria hospital. York County will also be asked to pro-
vide $25,000 towards the improvement of the hospital.
Saskatchewan.— The following is a list of authorizations
granted by the Local Government Board from December 18
to 24, 1920:—
Rural Telephones. — 8 per cent. 15-years annuity:
Dalrymple, $1,500; Cedoux, $4,800; Renown, $4,000; Lake-
view, $950; Surbutton, $200.
Bond Sales
New Westminster, B.C.— In December the city sold $23,-
000 6 per cent, technical school debentures, maturing Jan-
uary, 1939, to a local bond house at 86.75'.
Norfolk County, Ont.— R. C. Matthews and Co. have
purchased $50,000 6 per cent. 15-instalment debentures at
a price of 95.95, which is on about a 6.60 per cent, basis.
The deal was negotiated privately.
Manitoba.— A. E. Ames and Company and the United
Financial Corporation, Ltd., are offering in Canada $1,250,000
6 per cent, six months treasury notes at par and interest.
The securities are in denominations of $5,000, $10,000 and
$25,000, and mature July 15, 1921.
London, Ont. — A. E. Ames and Co. have purchased $741,-
200 6 per cent, serial bonds. There are two issues, one of
$465,000 for local improvements, m&turing from December
30, 1921 to 1930, and $276,200 for schools, maturing from
November 1, 1921 to 1950. The bonds are now being offered
to yield 6.25 and 6.30 per cent.
Etobicoke Township, Ont. — Wood, Gundy and Co. have
been awarded $30,000 6 per cent. 20-instalment debentures at
a price of 95.38, at which rate the township pays about 6.60
per cent, for its money. Tenders received were as follows
Wood, Gundy and Co., 95.38; W. L. McKinnon and Co., 95.27
C. H. Burgess and Co., 95.06; R. C. Matthews and Co., 95.06,
Canadian Debentures Corp., 95.06; Dyment, Anderson and
Co., 95.03; A. E. Ames and Co., 95.53; McNeill, Graham and
Co., 94.41.
Hamilton, Ont. — The United Financial Corporation, Ltd.,
and R. C. Matthews and Company have purchased an issue
of $450,960 bonds, comprising a number of miscellaneous
parcels, bearing interest at 5 and 6 per cent, and maturing
from one to twenty years. The issue is made up as follows:
$190,733 bear interest at 6 per cent., and are repayable
serially in the years 1931 to 1940, inclusive, the balance bear
5 per cent., $193,951 being repayable in 19 annual instal-
ments and $66,276 in nine annual instalments. The price paid
for the issue was 93.11.
Saskatchewan. — The following is a list of sale reported
by the Local Government Board from December 18 to 24,
1920:—
School Districts — Pheasant Forks, $14,000 8 per cent.
20-instalment, J. A. Thompson and Co., Winnipeg; Saint
Front, $2,700 8 per cent. 10-instalment, Waterman-Waterbury
Mfg. Co., Regina.
Rural Telephones— N. W. Smiley, $13,500 8 per cent.
15-years annuity, Harris, Read and Co., Regina; Haultain,
$600 8 per cent. 15-years annuity, A. L. Koyl and Co., Sas-
katoon.
Scarboro Township, Ont. — H&rris, Forbes and Co., Inc.,
have purchased $130,000 7 per cent., 30-instalment debentures
at a price of 104.277, at which rate the township pays about
6.59 per cent, for its money. A large number of tenders
were received as follows: Harris, Forbes and Co., Inc.,
104.277; McNeill, Graham and Co., 104.05; Wood, Gundy and
Co., 103.54; R. C. Matthews and Co., 103.36; A. E. Ames and
Co., 103.13; Brent, Noxon and Co., 102.66; Canadian Deben-
tures Corp., 102.51; Dyment, Anderson and Co., 102.33; Turner,
Spragge and Co., 102.29; United Financial Corp., Ltd., 102.28;
R. A. Daly and Co., 102.17; C. H. Burgess and Co., 102.16;
Dominion Securities Corp., 102.14^; A. Jarvis and Co., 99.04;
Nesbitt, Thomson and Co., 99.00.
Oshawa, Ont. — Many tenders were received for the $125,-
000 6 per cent. 30-instalment waterworks debentures. The
offer of R. C. Matthews at 95.06, which is on about a 6.48 per
cent, basis, was the highest and was accepted. The following
is the list of bids: —
R. C. Matthews and Co., 95.06; A. E. Ames and Co.,
94.949; Wood, Gundy and Co., 94.38; Brent, Noxon and Co.,
93.808; Harris, Forbes and Co., Inc., 93.717; United Finan-
cial Corp., Ltd., 93.68; A. Jarvis and Co., 93.65; C. H. Bur-
gess and Co., 93.54; Dominion Securities Corp., 93.453; Tur-
ner, Spragge and Co., 93.432; Dyment, Anderson and Co.,
93.37; T. S. G. Pepler and Co., 93.27; McNeill, Graham and
Co., 92.47; Canadian Debentures Corp., 92.03.
Manitoba. — The province last week disposed of $2,000,-
000 6 per cent. 10-year bonds, payable in Canada and New
York, to a syndicate comprising W. A. Mackenzie and Co.,
R. A. Daly and Co., and Strang and Snowden, at a price of
101.11, which is on about a 5.85 per cent, basis. Other ten-
ders received were: —
Harris, Forbes and Co., Inc., and Assoc 101.01
Dominion Securities Corp. and Assoc 100.856
Wood, Gundy and Co., Minnesota Trust and Loan
Co. and Assoc 100.77
A. E. Ames and Co., and the United Financial Cor-
poration, Ltd 98.633
Baird and Botterill, representing a syndicate, made an
offer for 15-year bonds payable in Canadian funds, but as
this was not called for, the proposal was not considered, and
the price offered was not revealed.
The proceeds of. the issue will be used for good roads,
$1,000,000, and for supplying working capital for rural credits,
$1,000,000. The bonds have all been disposed of in the
United States at a price to yield the investor 7.40 per cent.
ANOTHER PARIS LOAN HERE
The city of Paris, France, has authorized R. A.
Fargeuad, 35 St. James Street, Montreal, Que., its repre-
sentative in Canada, to sign up an offering of $4,000,000
city of Paris 6 per cent. loan, with the Banque Nationale and
the Banque Provinciale. The amount is part of the $20,000,-
000 authorized by the city of Paris for placement in Canada,
and of which $2,000,000 has been offered to the public The
whole amount will be used for the purchase of foodstuffs,
etc., in Canada. M. Fargeuad states that in connection with
recent purchases, the city of Paris has expressed complete
satisfaction, the commodities sent by the Dominion being
of excellent quality. The announcement of the terms, etc,,
of the loan will not be made public until all arrangements
have been completed with the banks.
JanuETV 14, 1921
THE MONETARY TIMES
53
Nem Issue
City of Halifax, N.S.
6% BONDS
Due January 1st, 1931
Principal and semi-annual interi^st payable at Torhntn. Montreal.
Halifax. Quebec
Denominations, $1,000
PRICE: 96 365 AND ACCRUED INTEHEST
Yielding 6.50 .,
Full particulars on request
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX, N.S.
Western Municipal & School
g% Debentures 71%
^ TO YIELD • 2 /^
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
INVITED
UNION TRUST BUILDING
WINNIPEG
CANADIAN
IPACIFIC/
Bureau of
Canadian
Information
""HE Canadian Pa-
ific Railway,
through its Bureau
of Canadian Infor-
mation, will furnish
you with the latest reliable information on
every phase of industrial and agricultural
development in Canada. !n the Reference Li-
braries maintained at Chicago, New York and
Montreal are complete data on natural resources,
climate, labor, transportation, business openings,
etc., in Canada. Additional data is constantly
being added.
No charge or obligation attacfies to this service.
Business organizations are invited to make use
of it.
Canadian Pacific Railway
Department of Colonization and Development
1270 Broadway
New York
165 E. Ontario St.
Chicago
335 Windsor Station
Montreal
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TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cable Address, Topeco-
rn L'n. and A.BC.Sth Bdition
CALGARY, CANADA
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C. H. .MACAILAY J 1'. NICOLLS. Notary t'ublic.
Investment
Holders
Increase Your Income With Safety
We request you to send us
list of your fioldings.
without obligation, a
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ing your security.
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Gillespie, Hart & Todd, Ltd.
Head Office Branch
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VICTORIA, B.C. VANCOUVER, B.C.
THE MONETARY TIMES
Volume 66.
Corporation Securities Market
Canadian Stock Values Continue on Upward Trend — Paper Issues Reactionary — Con-
sumers' Gas Stock All Subscribed by Public Tender — Winnipeg Railway Shares Offered
TJUOYANCY is a word which has seldom been used in con-
-*-* iiection with stock market operations during the past
few months, but if conditions continue along the same lines
as they have been during the past two weeks there should
be occasion to use it frequently. The recent rising tendency
in prices has been to a large extent the result of psycho-
logical influence, as, fundamentally, the business situation
has changed but little. Favorable changes are taking place,
however, and business men are taking more confidence in
the future. Money is becoming more plentiful, and this
factor is helping the market. On January 11 the call rate
in New York was quoted as low as iVz per cent. This was
not quite in line with the general situation, but at any rate
it is a good indication of the easiness of funds.
There is a good demand for the more stable securities,
such as bank and preferred stocks, and these have shown
the best impi'ovement, although many of the speculative
issues have risen to good levels. Tractions are becoming
favoi'ites, and prices of these stocks are undergoing consider-
able appreciation. Papers are falling to the background, and
at the same time are seeking lower levels.
That paper stocks should fall in value when other issues
are rising is somewhat puzzling. Manufacturers of news-
print have not yet spoken of price reductions, although
makers of' bond and kraft paper have announced cuts of 10
and 15 per cent., but the future cannot fail to bring about
such action, as business readjustment does not favor any
industry. But even a reduction in prices should not affect
the stock market to any appreciable extent. It is the opinion
that paper companies could easily compromise on future
prices and suffer little.
The following figures show the day-to-day trading on
the Montreal and Toronto stock exchanges for the week
ended January 12: —
Montreal. Toronto.
Listed stocks. Bonds. Listed stocks. Bonds.
Thursday .... 8,183 | 342,400 2,848 $ 343,450
Friday 13,136 889,100 3,327 429,400
Saturday 7,503 284,250 2,830 246,000
Monday 18,994 285,750 2,952 535,250
Tuesday 10,625 339,100 3,181 530,400
Wednesday .... 8,056 416,100 3,652 577,150
Totals .... 66,497 $2,556,700 18,790 $2,661,650
Figures for the prevnous week were: Montreal, listed
stocks, 58,2.58; bonds, $1,789,650. Toronto, listed stocks,
8,307; bonds, $1,589,100. The large turnover of Victory loan
issues is responsible for the large amount of bond trading.
Consumers' Gas Stock Subscribed
The issue of 12,786 shares of capital stock ($50 par
value) offered by the Consumers' Gas Company, of Toronto,
was largely over-subscribed, a greater number of tenders
being received than for any preivous issue in the history of
the company. Most of the tenders were from the company's
own gas customers, who will get a large proportion of the
stock. Without exception, the highest tenders were accepted.
Commenting on the sale, Arthur Hewitt, general man-
ager, stated: "While it is true that many municipal and
public utility enterprises offer their securities for invest-
ment, it is also ti'ue that these securities are taken up largely
by outside investors. For example, a great many Toronto
and Ontario public utility bonds have been sold in New York
and elsewhere, whereas the shares of the Consumers' Gas
Company are almost entirely owned by Toronto citizens, so
that an outstanding feature of the Consumers' Gas Company
is its real public ownership.
"The new capital will assist the company in providing
necessary extensions, which will be of benefit to the present
gas users, and will enable the company to take care of the
natural increase in business, incident to the city's domestic
growth, as well as to ♦cope with the very large call that has
arisen for gas for industrial purposes."
Winnipeg Electric Railway Offering
Public offering is now being made by Nesbitt, Thomson
and Company, Morrow and Jellett, Osier and Hammond,
Rene T. Leclerc, L. G. Beaubien and Company, and Osier,
Hammond and Nanton of $3,000,000 7 per cent, cumulative
preferred stock of the Winnipeg Electric Railway Company.
This issue was taken up some time ago, and a considerable
amount had already been subscribed for by private sale.
The shares have a par value of $100, and are being offered
at 90, with a bonus of 30 per cent, in common stock.
The proceeds of the issue will be used to retire notes
and bank loans. With these paid off, it is expected that the
company will be in a position to recommence payment of
dividends on its common stock within a reasonable time. The
increased rates granted to the company last year by the
Public Utilities Commission are already showing marked
improvement in net earnings. Figures of revenue, etc., for
the eleven months of 1920 are shown on another page of this
issue.
Owing to the large increase in business, the St. Thomas
Packing' Company has found it necessary to increase its
capitalkation from $250,000 to $1,000,000, and $300,000 worth
of guaranteed preferred stock is being issued. The company
is now the largest industry in St. Thomas, Ont., buying its
raw material largely in Elgin county.
Harris, Forbes and Company, Inc., and the Royal Securi-
ties Corporation will shortly offer in Canada $500,000 7 per
cent. 25-year refunding mortgage gold bonds of the Mari-
time Telegraph and Telephone Co., Ltd.
UNLISTED SECURITIES
Abitibi Gen. Mort.6's-.-
Alta. Pac. Grain... com.
'• "... .pref.
American Sales Booii.6's
Belding. Paul pfd.
Brand'm Henderson, pfd.
British Amer. Assurance
Burns, P 1st Mtge. 6's..
Can. Crocker Wheeler pf.
Can. Machinery . .. com.
Can. Oil com.
Can. Westinghouse
Can. Woollens com.
pref
Cockshutt Plow 7% pref.
Coll nsvvoodShipb'dg.e's
Crown Life Insurance...
Cuban Can. Sugar, com.
Ask
89.50
Cuban Can. Sugar.. pref.
Davies William 6's
Pom. lron&Steel5-slS139
Dom. Power com.
pfd.
DunlopTire pref.
6's,
Eastern Car 6's
Famous Players. H% pfd.
Goodyear Tire., pref
G'rd'n, Ironside .»tFare6's
Gunns, Ltd pref.
HarrisAbattoir 6's
Home Bank
Imperial Oil
King Edward Hotel.. 7's.
Lake Superior Paper. 6's.
London Loan & Savings.
Bid
Ask
41
92
99
62.50
68
41.50
85
90
88
92.75
90
97
85
91.50
81
79
85
85
90
80
89.50
93.50
97., 50
101.50
107
114
72. ,50
76
89
83
95
Manufacturers Life
Marconi Wireless
Massey- Harris
Mattagarra Pulp... pref.
" " ...com.
Mercantile Trust
Mexican Nor. Power.. 5's
Morrow Screw 6's
Murray- Kay pfd.
National Life
North American Pulp. ..
Nova Scotia Steel 6% deb
Ont. Pulp -e-s
Page Hersey.. . pref.
Peoples Loan & S
Riordon. .com.<ne
..pfd.
R. Simpson.- . . . -
^_stk.)
..pfd.
Bid
Ask
170
200
2.50
' 99
70
80
26
30
90
9
12., 50
84
87.75
60
70
1,50
5.50
6.25
71
76.50
91
96.50
84
80
'\5
30
70
73
75
76
Sterling Bank
Sterling Coal com.
Toronto Paper 6's.
Toronto Power. 5's ( 1924)
Trusts Guar
United Cigar Stores com.
pref.
Western Assurance
Western Can. Pulp.com.
Western Grocers — pref.
WhalenPulp com
■■ pref
Janu&ry 14, 1921
THE MONETARY TIMES
55
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Years
to yield I
We Specialh Recommend these Bonds as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto Bids.
EDMONTON
Royal Bank Chambers
CALGARY
The Bond House of British Columbia
WE ARE IN THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
SUPERriNE
LINEN REGQRO
ly pass
be I an-
clerks, be filed.
:rucial moment,
ry into a President's office
suKeestion of your Com-
ly's uiBnity and standing- if
eof Superfine l.inen Kecord.
Awarded tfic Gold Medal.
Antwerp IKS.'i; the Gold Medal.
Chicago, 18»:( ; and the r,r..nd Prix. Paris. 1900.
The Rolland Paper Co., Limited, Montreal
High GraJe Paper Makers since 1882
Milli It St. Jerome, P.Q.. aod Mont Rollaod, P.Q.
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. \V. MAHAN
J. A. WEST.MAN
Managing Dii
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
-SASKATOON AND CALGARY.
idian Managers
vBSTaBNT Corporation op Canada
London Office:
Ltd.
4 Great Winchester St.. E.G.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
P. M. LIDDELL & COMPANY
Investment Bankers. Fiscal Agents
Insurance Brokers
826-7-8 ROGERS BUILDING, VANCOUVER, B.C.
LOUGHEED & TAYLOR, LIMITED
STOCKS, BONDS AND ESTATE AGENTS
facilities and experience in procurin
•/toiisc Pro/»cr<y Locaiiotis /or Chain .
- service covers all of Western Canada.
CALGARY
ALBERTA
F. S. RATLIFF & CO.
FARM LANDS -FARM LOANS
STOCKS AND BONDS
Medicine Hat
Alberta
X
Vancouver District Property
Expert Estate Agents and Managers
Property Bought and Sold, Valued. Rented and
Reported on. Correspondence invited.
WAGHORN GWYNN Co., Ltd.
T. K. McCallum & Company
GOVERNMENT AND MUNICIPAL SECURITIES
Western .Miiiilrlpal. .Scliool anil .SaDkalrbenan Knral Tel*.
phuiie Co. ilebenlure), sperlalUed In.
Correspondence invited
GRAINGER BUILDING - . SASKATOON
56
T H
MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
MO.VTUKAL— Tw« Werfcst Kiulcd Jnii. I'^lli.
(Kigures supplied by Burnett & Co.)
Stuekn
Abitibi P..'*:?
ptd
Asbestos Corp
pfd
Ames-Holden
pfd
Atlantic Sugar
Bell Telephone
Brazilian T.L. & Power
B.C. Fish
Brompton Pulp «; P.
Canada Cement
•■ ...pfd.
Can. Con
Canadian Cottons
.pfd.
CanadianCar
pfd.
Canadian Gen. Elec...
Can. Loco pfd.
Can. Steamship
• ■• ptd.
•• •' _-Deb.
Con. Minmg& Smel...
Crown Reserve
Det Kvs
Oom. Canners
Dominion Bridge
Dom. Coal pfd
Dom. Iron pfd
Dominion Glass
•• .. pfd
Dom. Steel Corp
..pfd.
Dominion Textile
•■ ...pfd
Hillcrest
Howard Smith
■■ ...pfd.
Illinois Traction ..pfd
.pfd
Sales Open High Low Close
211
Laurentide ^19-
LyallCons ™
Macdonald Co "■
Mont. Cottons *
" pfd, a
Montreal Power 756S
alTr;
Tram Deb. .
Telegraph...
National Breweries....
Ogilvie Flour Mills . , . .
" .pfd
Ont. Steel Prod
Penmans.
pfd.
Price Bro»
Prov. Paper. - ,
Quebec Ry. L. H.&P..
Riordan PulpS P
St. Lawrence Fl. Mills.
Shawinigan W. & P . . ■
Spanish River
pfd.
St. Maurice
Steel Co. of Canada...
■' " ■' pfd.
Tooke Bros pfd-
Toronto Ry
Tucketts •■
pfd
VVabasso Cofn
Wayagamack P. &P..
Windsor Hotel
Winnipeg Ry
Kanks
Commerce
Hochelaga
Merchants
Molsons
Montreal
Nova Scotia
Nationale
Royal
Toronto
."ie
85
82if
92
78:1
27
101
■M)
39
Union
BoikU
Asbestos Corp
Bell Telephone Co..
Can. Cement
Can. Rubber
Cedars Rapids Mf'g
City Mont.Dec. 6s, 1922
" May6's,1923
'■ Sept.6's.l923
Dom. Can.W.Loan.I925
1931
1937
Victory Bond;
,1924
1934.
1922.
1927
1937.
1923.
1933
10'^
8700
140UO
4000
11000
99300
5500
7100
3600
10604
10734
35106
113829
686851
254505
45376
175429
416131
54j
553
S3t
831
501
443
73
64)
69*
69*
19
17*
15*
13
91
86
374
32*
88
SI
l■^i.
63*
70
6R
59}
55
1024 ' 107
notiVHEAl-Continued.
62i
l06i
1 06
86
86^
S7J
86
106*
106
lOSj
104
9S*
98
934
92
92
901
97i
95
98
94
SS'S
91*
98i
96}
98
95
99*
96t
971
95
98
95
Konils
Dom. Cottons
Dom, Canners
Dom. Coal
Dom. Iron
Dom. Steel
Dom. Textile
e of Woods
It. St. Ry
It. Power
Ogilvie Flour
Penmans
Price Bros
Q.iebec Ry.L.H.&P..
Riordon
Sherwin-Williams
Steel Co. of Canada..
Waba-so Cotton
Wayagamack P. & P. .
Winnipeg Elec.
Sales Open High Low CI
1900
5000
51800!
14000
I'OKONTO— Tn» Weeks Gndeil Jan. IStli.
Atlantic Sugar
Barcelona
Bell Telephone
Brazilian Traction-
Burt. F. N
Canada Cement .
Sales Open High Low CI
2025i I9i
561
Canada Steamship.
City Dairy..
Coniagas . .
Con. Gas.. , ,
Crows Nest.
Dome
Duluth
Loco
Mackay Companies. . . .
■■ ...pfd.
La Rose.
Maple Leaf
N.S.Car
•■ •■ pfd.
N. S. Steel
Nipissing
Pac. Burt
Porto R'co
pfd.
Quebec R.L.H. & P
Riordon
Rogers pfd.
Russell pfd,
Salesbook ptd
Sawyer-.Massey. . , , pfd
Smelte
Spanish Rii
Steel Company
Toronto Ry
Tucketts
Winnipeg" Elec. .
ICaiiks
Commerce
Dominion
Hamilton
Imperial
Merchants
Molsons
Montreal
Nova Scotia. ..
Royal
Standard
Uni<
nto..
Loan and Trust
Can. Land
Col. Inv
Lon. A Can
Ham. Prov
Toronto Gen. Tr,
Tor .Mtg
Bonds
Canners
Rio. Jan. T., L. & P..
Steel of Can
Sao Paulo
21
1000
6500
44000
1000
43500
851
TOROyrO— Continued
50
70
55
72
46
70
40
40
40
IN
19
18
87
88S
84
94j
94.1
92
43
49
42
64
64*
64
60
634
59
86?
88
86
.57
65
56*
42*
42*
42i
37
41*
36
182*
185}
179}
19H
202
191*
169
175
169
188
188
1851
166*
181
166*
16,S4
16Si
168*
196
200
196 '
2.50
250
249
194
198i
194
200
200
198
18?
184
182
147
154
147
130
130i
130
77
77
77
115
115
115
163
173
163
140
140
110
180
180
180
132
132
132
84
84
84
88
89
88
62
76
62
91
91
91
70
73
70
War Loans
Dom. Can.W.Loan. 1925
1931
' 1937
Victory Loan 1922
1923
1927
1937
1933
1934
1924
Sales
Open
High
Low
19500
924
93g
92
30800
90*
93
904
103900
94«
971
944
462250
97i
98i
97
3084S1J
95*
95i!
95
88550
954
98
954
67770(1
97
99*
96*
847850
954
981
95
79835C
924
964
92§
2439.50
91*
97j
941 i
WINNIPEU— Two Week.s ended Jan. Ktii.
1924..
1925..
1927..
1937..
1933..
6400
33050
30100
1934 35050
Sales Open High| Low Close
17300
43300
6300
KBW YOltK— Two Weeks ended Jan. Sth.
Canadian Pacific
Canada Southern
Nova Scotia S.&Coal.
Granby Consolidated , ,
54% 1921
5% 1926
54% 1929
5% 1931
Sales
Open
High
117*
50
324
17}
99
88}
89
83
13
Low
112}
40
30
15i
983
98}
85
86
81*
11
19600
100
3200
3000
42000
19000
73000
143000
47000
3500
LO.\UO.\, Eng.— Two Weeks ended .Ian. 1st.
Vov'l. A Muu.
Canada... 3*%
•■ .... 34% 1930-50
" ... 3% Reg
" .... 4% 1940-60.
" .,., 44% 1920-25
Calgary 4 J?o debs.
5% debs. .
Edmonton 5% deb
5%bds.23-53
Manitoba 4% Reg..
44%
Nfld.3*%bds
Montreal 44% Reg
4% Reg. 48-50
5% deb
Nova Scotia 4*% cons
Quebec 3%
■■ 4% bds. 1934...
Sask. 44% Reg
S. Vancouver 5% cons
Vancouver 4% deb...
Toronto 4%
4% debs. 1944-8
Victoj-ia 34% 1921-6 .
34% 1929-49
4% cons —
4% 1918-22
5*% cons. .
61%
Winnipeg 4% 1940-60
4% cons..
Railways
Can. Nor. 4% deb. I939i
" 4% deb. 1930..
*' " Pac. 4% deb. .
Can. Pac I.
" 4% deb.'.
" 4% pfd. .
G.T.P. Br. 4% bd, 1939.
G.T.P.3%bds i
G.T.P.4%195S |,
Gr. Trunk 4%guar.l.
Gr. Trunk5% 1st. pfd..
Gr. Trunk 5% 2nd pfd.. .
Gr. Trunk 4% 3rd pfd..
Gr. Trunk 4% cons. . . .
Ont. & Quebec 5% deb. .
P. Gt. East. 4*% deb. '42
lud.. Fin., Ktr.
Can. Car 6% bds
Can. Cement 7% pfd^ . , .
Can. West Lun
5%1
:.db.!
Toronto Pow. 4*% deb.
Can. Gen. Elec I
.7% pfd.
iigh
Low
r>.i
60i
61)
60S
63
623
71}
71*
mH
90
00
90
88}
88}
74
734
89*
87}
754
74
821
821
64*
61
671
68*
641
62*
90
90
721
72
62*
624
77*
77*
77«
75J
66
66
.59*
584
98
98
664
653
821
811
62
618
674
671
93}
931
93}
93}
1011
100}
KKi
674
78*
77*
,S4*
54
8Si
82
67
67
1,59
154*
651
63*
fir!
60S
88
84*
644
634
70
68}
58
573
44
414
.324
301
131
61}
604
74*
74
76
76
107
1034
100
100
62}
61*
16
16
601
60i
110*
1104
103
103
93}
lOIJ
68}
January 14, 1921
THE MONETARY TIMES
57
Dividends and Notices
Debentures for Hale
THE MERCHANTS BANK OF CANADA
QUARTERLY DIVIDEND
A Dividend of Three Per Cent, for the Current Quarter,
being at the rate of Twelve Per Cent, per annum, upon the
Paid Up Capital Stock of the Bank, was declared payable on
1st February next to Shareholders of record on the evening
of 15th January, stock not fully paid up on 1st November to
participate from that date on the amounts then paid up and
on subsequent payments from the dates thereof.
By Order of the Board.
D. C. MACAROW,
General Manager.
Montreal, 28th December, 1920. 346
NOTICE
is hereby given that the Annual General Meeting of the
Policyholders and Guarantors of the
North American Life Assurance
Company
will be held at the Head Office of the Company, North
-American Life Building, 112-118 King Street West, Toronto,
Ont., on
THURSDAY, 27th January, 1921
at 11 o'clock in the forenoon,
for the reception of the Annual Report, a Statement of the
Affairs of the Company, and the transaction of all such
business as may be done at a general meeting of the Com-
pany.
W. B. TAYLOR,
Januarj* 8, 1921. Secretary.
WANTED. — Position as inspector with casualty insur-
ance company. Advertiser has had several years' experience
with old-established companies. Best of references. Age 30.
College education. .Address Box 379, Monetary Times, Toronto.
RECENT FIRES
Town of Arran, Sask., SulTered Loss of $l.iO,000 — Several
Buildings at Hazelton, B.C., Destroyed with Loss of
SIOO.OOO— .Model Cloak Co. at Hamilton, Loss S80,000
.\rran. Sask. — December 31 — Six buildings were de-
stroyed by fire with an estimated loss of $150,000.
-Vylmer, Ont.^— January 4- — The large icehouse of the
Cai-nation Milk Co. was damaged by fire. The loss is esti-
mated at $4,000.
Brighton, Ont.. — January 12 — .\ fire started in the store
of Robert Ross, Main Street, and was not checked until the
post-office was reached. Ross' store was destroyed, also
Byllock's hardware and grocery store, Marshall's barber
shop, the Bank of Commerce building and the Central Hotel,
while considerable damage was sustained by Fry's dry goods
store.
Calgary, Alta. — December 25 — The Mewata Park Cot-
tage School was damaged by fire to the extent of $1,500.
The loss was covered by insurance.
Edmonton, Alta. — January 5 — The Twin City Transfer
Company suffered a heavy loss when a six-cylinder Stude-
(Continued on page 60)
DEBENTURES FOR SALE
The town of Kamsack has for sale $13,400.00 of 15-
year 7 per cent, debentures, repayable in equal annual in-
stalmtnts of principal and interest combined.
Any further information gladly furnished by
L. W. ANDREW,
Treasurer.
Kamsack, Sask. 354
SALE OF DEBENTURES
TOWNSHIP OF BARTON
Sealed tenders, endorsed "Tenders for Debentures," wilt
be received by the undersigned up to Saturday, January
15th, 1921, for the purchase of the following bonds: —
$ 6,185.99 (approximate) 20-year sidewalk bonds,
11,557.56 (approximate) 10-year road bonds,
6,000.00 3-year road machinery bonds.
.•\11 the above issues are on the sinking fund plan, in-
terest payable half-yearly, 6 per cent. Tenders opened
January 17th, at 2 p.m. The highest or any other tender
not necessarily accepted.
ALFRED G. E. BRYANT,
Township Clerk.
Room 1, Court House, Hamilton. 357
KEGINA PUBLIC SCHOOL DEBENTURES FOR SALE
Tenders will be received by the undersigned up to noon
of February 1, 1921, for the purchase of Regina Public
School District debentures totalling Two Hundred and Fifty
Thousand Dollars ($250,000.00), repayable in thirty years
(30), with interest at six and one-half per cent. (6 ¥2%) per
annum, payable half-yearly at (1) Regina, Toronto, and
Montreal, or (2) Regina, Toronto, Montreal and New York,
at the option of the holder.
Tenderers are requested to submit bids for debentures
payable in Canada and New York, and for debentures pay-
able in Canada only.
Tenders will be considered on both the sinking fund
and annuity plans of repayment.
Regina funds and delivery.
No tender necessarily accepted.
For further information address
J. H. CUNNINGHAM, Secretary,
Regina Public School Board,
Regina, Sask.
Regina, Saskatchewan, January 6th, 1921. 353
DEBENTURES FOR SALE
TOWN OF GLADSTONE. MAN.
Offer eleven thousand dollars ($11,000) debentures for sale.
Debentures twenty-years bearing six per cent, interest. Inter-
est payable half-yearly, first 'of July and first of January.
Interest guaranteed by the Provincial Government of Mani-
toba. Denomination $100 each. Interest coupons attached
authorized by an act of legislation. Debentures dater 1st
January, 1921. Tenders received up to February 1st, 1921.
S. SCHOOLEY,
Secretary-Treasurer.
THE MONETARY TIMES
Volume 66.
Corporation Finance
Permanent Increase in Bell Telephone Rates Opposed by Toronto and Montreal
Representatives at Ottawa — Advance Should be Only Temporary, it is Contended—
Barcelona Revenue Lower But Strong Position has been Maintained — Dominion
Bridge Earnings Show Big Crop — Winnipeg Railway Revenue Continues to Increase
St. Thomas Packing Company. — The annual financial
statement for 1920 shows that the company enjoyed the best
year in its history, with a total turnover of $1,005,000, which
is an increase of about .50 per cent, over 1919. A dividend
of 7 per cent, has been declared for the year.
Brazilian Traction, Light and Power Company Net
earnings of the company for November, 1920, amounted to
■5,824,000 milreis, as against 4,939,000 milreis for the same
month a year ago. This showing is not quite so good as in
previous months, but it is not by any means the worst for
the year. Total gross earnings for the eleven months amounted
to 122,306.000 milreis, an increase of 18,971,000 milreis over
the previous year. Net amounted to 64,308,000 milreis for
the eleven months, an increase of 10,773,000 milreis.
Winnipeg Electric Railway Company. ■ — Net earnings
continue to increase, while operating expenses and taxes for
November were almost down to the figures of the same month
in 1919. Net earnings for eleven months show a gain of
.$408,498, as will be seen from the following table: —
Nov., 1920. Increase.
Gross earnings $ 483,433 $ 21,784
Operating expenses and taxes 363,232 900
Net earnings $ 120,201
Eleven months ended November 30—
Gross earnings $4,768,914
Operating expenses and taxes 3,553,879
$ 20,884
$929,158
520,661
Net earnings $1,215,035 $408,498
On the street railway lines in the city of Winnipeg the
company carried over 8,000,000 more passengers for the
eleven months ended November 30, 1920, than for the same
period in 1919. There were good increases in the light and
power departments also.
Toronto Railway Company. — The earnings of the com-
pany, as disclosed in the annual statement to be presented
to shareholders at the annual meeting on February 2 next,
show a gain of more than $700,000 over gross earnings for
1919. The total earnings for 1920 are $7,875,774, as com-
pared with $7,175,166 in 1919. Out of this the finance com-
missioner of Toronto will receive as percentage $1,550,000,
which is about $209,000 in excess of the sum placed in the
estimated revenue for 1920.
The number of passengers carried was about 200,000,000,
or an increase during the year of 18,000,000. In spite of the
larger amount of gross eai'nings, it is understood the com-
pany will close the year with a deficit. This is largely caused
by increased operating costs, particularly in wage increases
granted to the men. The amount of the deficit is not given.
Dominion Bridge Company, Ltd. — Net earnings of the
company for the year ended October 31, 1920, amounted to
$964,530, as compared with $1,343,305 for ,the previous
period. These earnings are equivalent to 14.85 per cent, on
the outstanding stock, as against 20.65 per cent, in 1919.
Speaking of the year's results, the report of the directors
states: —
"The volume of business booked during the year under
review has not been up to the average, and your plants at
Lachine, Toronto and Ottawa have run at less than normal
capacity. It is gratifying, however, to state that the Win-
nipeg plant has earned out the most satisfactory program
since that branch was opened. The expected reduction in
value of materials is now taking place, and your inventories
have been figured with this fact in view. Investments in other
companies and in fixed assets are conservatively rated.
"The liquidation of the St. Lawrence Bridge Company
was completed during the year. Your capital invested in
that company has been returned, and dividends to the amount
of $265,797.50, which are included in the profits for the year,
were also received. The Dominion Copper Products Com-
pany, Limited, in which your company holds the controlling
interest, has sold its plant and equipment to a new company.
The land and buildings used by Dominion Copper Products
Company, but which belonged to your company, have also
been sold. The price received for the land and buildings has
been applied to the reduction of fixed assets and the affairs
of the Dominion Copper Products Company, Limited, are
now being liquidated."
The falling cfi" in the revenue has not affected the gen-
eral financial position of the company. This is evident from
the balance sheet, which shows liquid assets of $6,586,295,
as against $5,796,797 a year ago, and current liabilities of
$1,448,340, as compared with $1,929,391. Total assets show
a slight falling off. The following are some of the principal
comparisons: —
1920. 1919.
Plant $ 4,115,863 $ 4,461,326
Investments in other companies.. 2,104,290 2,625,187
Accounts and bills receivable 1,903,424 1,526,523
Inventories 3,115,745 2,114,902
Cash ■ 391,451 192,253
Reserves 607,476 593,879
Surplus 4,293,144 3,848,613
Total assets 12,848,960 12,956,326
Barcelona Traction, Light and Power Company, Ltd. —
For several years the company has had a dilficult time,
owing to strikes and other labor troubles, occasionally inter-
rupted by assassination, and it cannot be said that the
country has settled down fully yet. Nevertheless, the com-
pany has maintained a strong financial position in the face
of these difficulties, although revenue has suffered to some
extent. The annual statement for the year ended De-
cember 31, 1919, which has just come to hand, shows net
revenue at $2,194,353, as against $2,516,920 in 1918, $2,354,-
964 in 1917 and $1,875,315. These figures, which include
revenue from investments from the tramways, indicate
the amount available for interest on bonds, payable in cash,
and for construction expenditure in accordance with the
funding arrangements of 1915 and 1918. The interest, pay-
able in cash, on the company's bonds amounted to $1,803,169
in 1919.
Important progress in the company's property is re-
ported. Two units of the new power-house at Camarasa were
brought into operation in the latter half of 1920, but a cer-
tain amount of work remains to be done to complete the
installation. The new plant adds at once approximately
34,000 h.p. to the available hydro-electric power of the Ebro
Irrigation and Power Company, a subsidiary, and three more
units of 17,000 h.p. each can be installed as required. The
hydro-electric power of the Ebro company, now available,
amounts to approximately 130,000 h.p. Operations of the
Ferrocarriles de Cataluna Company have again been satis-
factory, earnings from the Tarrasa extension having exceeded
the estimates. The new cars ordered from the United States
have now reached Spain after a long delay and are being
assembled. Their increased cai-rying capacity will add ma-
terially to the earning power of the company. This extension
in rolling stock was financed by the sale of 2,000,000 pesetas
of 5 per cent, bonds to Spanish bankers in May, 1919. The
construction of the extension to Sabadell was begun in No-
vember, 1920.
The consolidated balance sheet shows that total assets
have increased from $117,851,688 to $122,761,707, while the
Janu&ry 14, 1921
THE MONETARY TIMES
ONTARIO PULP AND PAPER COMPANY, LIMITED
Incorporated under the laws of the Province of Ontario
To the Holders of Six Per Cent. First Mortgage 30-Year
Gold Bonds of the above-named Company
Notice is hereby given that at a Special General Meeting
of Shareholders of The Spanish River Pulp and Paper Mills,
Limited, held at the Head Office of the Company, in the
City of Toronto, on the 23rd day of June, 1920, the Share-
holders approved of a plan to pay the accumulated divi-
dends on the Preference Stock of the Company up to June
30th, 1920, amounting to 42%, by the declaration of a
Preferred Stock dividend, and that in accordance with Clause
7 of a Supplemental Mortgage dated the 13th of January,
1915, made between The Spanish River Pulp and Paper
Company, Limited, and The Royal Trust Company, the
holders of the various bonds mentioned in said clause includ-
ing the holders of the bonds to whom this notice is directed
will receive their pro rata share of 10';'c of the total amount
of the Preference Stock of The Spanish River Pulp and
Paper Mills, Limited, issued in accordance with the said
plan so approved by the Shareholders as aforesaid.' Under
the terms of the said Clause 7 of above Supplemental Mort-
gage the holders of the various bonds therein mentioned are
also entitled to 10 7f of the total amount of any cash divi-
dend paid to the holders of the Common and 'or Preference
shares of The Spanish River Pulp and Paper Mills, Limited.
A cash dividend of 1%% for the quarter ending September
30th, 1920, has been distributed to both Common and Pre-
ferred Shareholders, and bondholders will be accordingly
entitled to their pro rata share of such dividend.
In order to distribute to the holders of the above-men-
tioned Si.x Per Cent. First Mortgage 30- Year Gold Bonds
their proportion of said Preference Shares under said Clause
7, and to provide a convenient means of distributing the
above and all future cash dividends to bondholders, it will
be necessary that all holders of said bonds, whether of
registered bonds or bearer bonds, send their bonds at once
to The Royal Trust Company, 59 Yonge Street, Toronto; or
The Royal Trust Company, Montreal, Quebec; or Agents of
the Bank of Montreal. 64 Wall Street. New Y'ork City; or
City Trust and Savings Bank, Dayton, Ohio; or The Bank of
Montreal, 47 Threadneedle Street, London, E.C., England,
in order that the bonds may be stamped with a notation
that the holders thereof have received their respective pro-
portion of the 'said Preference Stock of The Spanish River
Pulp and Paper Mills, Limited, and have also received the
necessary certificate with coupons attached to enable them
to collect their pi-o rata share of all cash dividends now or
hereafter distributable to bondholders.
Bondholders are urged to send in their bonds to any of
the above places at once, in order that the above distribution
may be made without undue delay.
THE ROYAL TRUST COMPANY",
Trustee.
Toronto. November 24th. 1920. 350
THE SPANISH RIVER PULP AND PAPER MILLS,
LIMITED
Incorporated under the laws of the Province of Ontario
To the Holders of Six Per Cent. First Mortgage Sinking
Fund Gold Bonds of the above-named Company
Notice is hereby given that at a Special General Meeting
of Shareholders of The Spanish River Pulp and Paper Mills,
Limited, held at the Head Office of the Company, in the
City of Toronto, on the 23rd day of June, 1920, the Share-
holders approved of a plan to pay the accumulated divi-
dends on the Preference Stock of the Company up to June
30th, 1920, amounting to 42',;, by the declaration of a
Preferred Stock dividend, and that in accordance with Clause
7 of a Supplemental Mortgage dated the 20th of January,
1915, made between The Spanish River Pulp and Paper
Mills, Limited, and the Montreal Trust Company, the
holders of the various bonds mentioned in said clause includ-
ing the holders of the bonds to whom this notice is directed
will receive their pro rata share of lO'v of the total amount
of the Preference Stock of The Spanish River Pulp and
Paper Mills, Limited, issued in accordance with the said
plan so approved by the Shareholders as aforesaid. Under
the terms of the said Clause 7 of above Supplemental Mort-
gage the holders of the various bonds therein mentioned are
also entitled to lO'^i of the total amount of any cash divi-
dend paid to the holders of the Common and or Preference
shares of The Spanish River Pulp and Paper Mills, Limited.
-A. cash dividend of 1%% for the quarter ending- September
30th, 1920, has been distributed to both Common and Pre-
ferred Shareholders, and bondholders will be accordingly
entitled to their pro rata share of such dividend.
In order to distribute to the holders of the above-men-
tioned Six Per Cent. First Mortgage Sinking Fund Gold Bonds
their proportion of said Preference Shares under said Clause
7, and to provide a convenient means of distributing the
above and all future cash dividends to bondholders, it will be
necessary that all holders of said bonds, whether of registered
bonds or bearer bonds, send their bonds at once to the Mont-
real Trust Company, 61 Yonge Street, Toronto; or The Mont-
real Trust Company, Montreal, Quebec; or The .'Agency The
Royal Bank of Canada, 68 William Street, New York City; or
City Trust and Savings Bank, Dayton, Ohio; or Montreal
Trust Company, 2 Bank Buildings, Princess Street, London,
E.G. 2, England, in order that the bonds may be stamped with
a notation that the holders thereof have received their respec-
tive proportion of tlie said Preference Stock of The Spanish
River Pulp and Paper Mills, Limited, and have also received
the necessary certificate with coupons attached to enable them
to collect their pro rata share of all cash dividends now or
hereafter distributable to bondholders.
Bondholders are urged to send in their bonds to any of
the above places at once, in order that the above distribution
may be made without undue delay.
MONTREAL TRUST COMPANY,
Trustee.
Toronto, November 24th, 1920. 351
capital account has advanced $3,000,000 to $114,171,513.
Liquid assets are shown as $7,974,998, as against liabilities
of the same category of $5,134,501. The figures last year
were $6,867,505 and $5,569,748, respectively. Resei-ves for
depreciation are given as $1,342,134, compared with $482,321
at the end of 1918.
Bell Telephone Company of Canada. — Hearing of the
company's application for increased rates Was resumed
at Ottawa on January 5, before the Dominion Board of Rail-
way Commissioners. The company placed its position before
the board, submitting many figures in support of its argu-
ments. Opposition to the company's claims was given chiefly
THE M O N ET A R Y TIMES
Volume 66
by G. R. Geai'y, Toronto counsel, and W. J. Hagenach, tele-
phone expert, who appeared from Montreal.
C. F. Sise, general manager of the Bell Telephone, was
chief witness for the company. There had been heavier
operating costs in the last four months, Mr. Sise stated.
He placed before the board a statement showing the result
of one year's operation under present tolls and charges. In
this statement actual figures were taken from May 1 to
November 30, 1920, and showed the following revenue: Ex-
change revenue, $11,716,.538; toll revenue, $4,618,751; mis-
cellaneous, $86,261; total operating revenue, $16,421,551.
Expenses over the period reached a total of $17,338,356. Mr.
Sise said the company's loss during the eleven months of
operation had been over $1,500,000, which did not include
payment of dividends. The increased rates were necessary
to give the public better service and provide for extensions.
The increased rate was to attract new capital but not to be
used in the form of new capital for extensions.
The budget first drawn up was for an outlay of $25,-
000,000, and this had been revised to $16,000,000. Asked
why the company sought to raise such a large amount of
its revenue on the exchange rates, Mr. Sise said that the ex-
change rates were the chief income of the company. A state-
ment was filed showing the estimated increased revenue to
be derived from the proposed rates, and the position that
the company would find itself in if the increases were
granted. The revenue vi^hich would be derived from the pro-
posed rates was estimated at $4,577,687. This with non-
operating revenue, dividends from investments and interest
on bonds and deposits made a total of $5,005,525. Net earn-
ings were estimated at $3,184,612. The balance available to
apply toward increased operating and maintenance expenses
and cost of financing was estimated at $131,388. Mr. Sise
stated that the company believed that a flat rate was less in-
equitable in small towns than in large cities and therefore
had suggested that measured rate only in the five cities. In
these the company had proposed the measured rate in busi-
ness phones only because there was not much difference in
private house use.
G. R. Geary, K.C., corporation counsel for the city of
Toronto, who opposed the company's claims, stated that the
increased rates had been based on a hypothetical year's re-
ceipts and expenses calculated from the experience of the
company from May 1 to November 30, 1920, when costs of
labor and material were at the highest, and asked the board
to consider the application for changed rates as a temporary
or emergency measure only. W. J. Hagenach, appearing
for Montreal, made similar proposals, asserting that many
commodities, including those used by the telephone company,
are falling in value. As conditions are unsettled, any relief
given should be of a temporai-y character.
J. H. Winfield, manager of the Maritime Telephone Co.,
serving the province of Nova Scotia, stated that measured
service to telephone users in Halifax, N.S., has proved a
saving to the majority of subscribers. The use of telephones,
he said, had increased under measured service. There were
about 10,000 telephones in Halifax now against 7,000 in
1914. People who could not afford telephones at $52.50 per
year, the flat rate previous to measured service, had in-
stalled phones at the rate of $3 per month. The majority
of users under measured service found it was a saving to
them on telephone outlay.
There was a good deal of controversy regarding the con-
tracts between the Bell Company and its subsidiary, the
Northern Electric Co. Chief Engineer Lash of the Bell
Telephone Co. asserted that the business dealings between the
Bell Telephone Co. and the Northern Electric, which sup-
plies most of the apparatus used, is conducted on strictly
business lines, and that prices paid are in all instances closely
checked and fair and reasonable. They maintained that the
equipment supplied by the Northern Electric was the best
suited for long distance transmission. Mr. Lash stated that
a good deal of trouble was experienced in connection with
independent companies because their equipment was often
of a lower standard than that of the Bell Company.
RECENT FIRES
(Continued from page 57)
baker taxi, valued at $2,500, caught fire on Portage Avenue.
The car was a total loss, no insurance being carried.
In our issue of December 31 the notice about the fire
in the barn belonging to the General Administration Society
was in ei-ror. The barn belonged to Mr. Love.
Glace Bay, C.B. — January 6 — The front range light at
Glace Bay harbor, together with all the supplies for the
winter, were destroyed by fire.
Glace Bay, N.S. — January 12 — Glace Bay Hotel was de-
stroyed by fire. The loss is estimated at $30,000. One
fatality.
Guelph, Ont. — January 9 — The bam of A. N. Harrison,
Guelph township, was burned through the explosion of a
lantern. The loss is about $5,000, with $2,200 insurance.
Halifax, N.S. — December 30 — Garage situated at the
rear of the old Eraser livery stables, and owned by C. Brister
and Son, Ltd., was damaged by fire.
Hamilton, Ont. — December 30 — The stock and interior
of the Model Cloak and Suit Co. store at 46 James Street
North was damaged by fire. The loss is estimated at $80,000;
insurance does not exceed $25,000.
Hazelton, B.C. — December 26 — Fire caused a loss esti-
mated at $100,000 when the block occupied by the G.T.P.
restaurant was burned.
Lariviere, Man. — January 7 — The farm home of James
Boyd, situated three miles west of the town, was totally
destroyed by fire. The loss will be heavy as a very small
amount of insurance was carried.
London, Ont.— December 28 — Damage estimated at $20,-
000 was caused by a fire which swept through the premises
at 121 Dundas Street, occupied by the United Manufacturers,
of Toronto. There is insurance of $30,000.
January 1 — The frame garage of C. H. French at 286
St. James Street was damaged by fire to the extent of $2,000.
Mahone Bay, N.S. — December 30— Woodshed of F. Hollo-
way was destroyed by fire.
Montreal, Que. — December 28 — The home of Achille
Wybou, 3820 St. Lawrence Boulevard, was destroyed by fire.
January 6 — The four-storey building at 201-203 Notre
Dame Street East was damaged by fire. The fire originated
on the second floor of the building, occupied by the Atlas
Whitewear Co.
January 7 — The factory of Guenette Co., 899A LaSalle
Avenue, Maisonneuve, was damaged by fire.
January 10 — Storehouse used by the Lawrence Wilson
Co. in rear of 42 Craig Street West was destroyed by fire.
Moose Jaw, Sask. — December 26 — The farm residence
of John Logan, south-west of the city, was destroyed by fire.
The origin of the fire is believed to be due to the overturning
of a lantern by a dog. The loss is estimated at $3,500.
Ottawa, Ont. — January 7 — Fire, apparently caused by
an overheated furnace, caused damage estimated at $5,000
to the furnace foundry and repair shop at 287 Lyon Street
owned by the Pease Foundry Co., Toronto, and operated by
W. H. Murphy, Ottawa agent.
Quebec, Que. — January 2. — The dry goods store of J. P.
Lanmondon et Fils, 727 St. Valier Street, was damaged by
fire to the extent of $25,000.
Reedsdale, Que. — January 3 — Barn belonging to Ben
Seale was destroyed by fire. The loss is estimated at $7,000.
St. Gregor, Sask. — December 29 — Three small children
were burned to death in a fire that destroyed the home of
Ben Taphorn.
St. Hyacinthe, Que.— January A- — Grain establishment of
G. N. Larivere, that of A. Bondin and Co., plumbers, and
the candy store of T. J. Orsall were destroyed by fire with
a loss of $25,000.
St. Johns, Que. — January 1 — Fire, believed to be of in-
cendiary origin, destroyed stables and hayloft of the Na-
tional Hotel. The damage is estimated at $4,000.
PcrL'iUKtJ EVERV FHIDAV
The Monetary Times
Printing Company
of Canada, Limited
"The Canadian Engineer"
Trade Review and Insurance Chronicle
of Canada
Established l&'o',
Old as Confederation
JAS. J. SALMOND
President and Genei'al Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Saskatchewan Legislation Moderate in Character
Recent Session Devoid of New Departures — Grants for Education Substan-
tially Increased — Several Bills Affect Provincial and Municipal Finance —
House Goes on Record for Lower Tariff, Wheat Board, and More Railways
JUDGING from Saskatchewan's record, the present year
will see little legislation of a radical character. This
province was the first to hold its 1920 session, commencing: in
fact on November 4 and closing on December 15. Nearly all
the legislatures meet during the winter, but it is of course
the exception for the session to end before the New Year.
Quebec opened a few days ago, and Ontario will open next
week.
Four bills were passed through the Saskatchewan
legislature relating to important private companies operating
under provincial charters. One relates to the Agricultural
Insurance Company, which was incorporated in 1916, and
pro\ndes that the capital shall consist of $1,000,000 in 10,000
shares, and that no one person shall hold more than twenty-
five shares; authorization is also given to the company to
write fidelity and guarantee business.
The Midwest fidelity and Guarantee Company, Ltd., is
incorporated with an authorized capital of $500,000 and head
office in Regina. O. F. Seeker, Edmund Simon and John L.
McDougall rtre the petitioners for thi scompany. It is au-
thorized to transact all kinds of insurance business except
life, and may commence as soon as $200,000 of capital has
been paid up.
New powers are given to the Saskatchewan Guarantee
and Fidelity Company, which was incorporated in 1908, and
which will now be authorized to write fire and windstorm,
inland transportation, inland marine, accident, employers'
liability, steam boiler, sickness, automobile, burglary, sprink-
ler, hail and live stock insurance, in addition to the lines for
which it was already authorized. Provision is also made for
amalgamation, purchase or sale with any other company
transacting similar business.
Loan Company Change
Authority is given for the Netherlands Investment Com-
pany of Canada, Ltd., to be registered to do business in Sas-
katchewan. It is required to show that it has $75,000 of stock
subscribed and $25,000 paid up, and it is not to borrow in
Saskatchewan unless the aggregate of the sums of money
borrowed by the company does not exceed four times the
combined amounts of its then actually peid-up and unim-
paired capital stock and reserve, but cash or Dominion or
Imperial war loan bonds may be deducted in determining
this aggregate. The objects of the Netherlands Investment
Company of Canada, Ltd., as defined in its Manitoba letters
patent of November, 1920, are to lend and borrow money,
etc., but do not include banking, insurance or trust company
powers.
There are two slight insurance amendments. One relates
to the Municipal Hail Insurance Act; the other deals with
workmen's compensation, increasing the maximum payment
from $1,800 to $2,000.
Measures affecting the public revenues are also in evi-
dence. There is an act to amend the Travelling Shows Act,
imposing daily fees for circuses, etc., of from $10 to $250,
according to the size of the outfit and the city or town where
it is being shown. An amendment to the Wild Lands Tax
Act requires the assessor of every municipality to make a
special assessment of lands not later than August 1, 1921,
and forward a statement to the Wild Lands Tax Commis-
sioner for the purpose of equalizing assessments. There is
also a slight amendment to the Succession Duties Act.
Higher expenditures for education are provided in the
"Act to provide for the payment of grants in support of
elementary education." This provides for the payment of
$1.50 per day, and of GO cents per day for the first year and
40 cents per day thereafter in the case of rural districts.
In town districts the payment is to be $1.50 per day, but
with larger schools it is lower. Three dollars per day is to
be granted for continuation schools. There are also special
payments for science equipment, lunch facilities, etc.
An amendment to the Municipalities Seed Grain Act
provides that seed grain obligations shall rank second to
taxes and to mortgages. There is also a "Seed Grain Ad-
vances Act, 1920," providing that advances for seed grain
purposes may be made by the mortgagee.
Provincial Borrowing
The total authorized under the Saskatchewan farm loans
system is increased from $10,000,000 to $15,000,000, and the
total under the Agricultural Aid Act is raised from $1,000,-
000 to $2,000,000.
Municipal finances are also affected by several bills.
There is one "Act to amend the Rural Municipality Act,"'
which deals with the appointment and duties of treasurers
and with equalization of assessments. An Act to amend the
Village Act deals with the auditing of accounts, etc. There
are also Acts to amend the Arrears of Taxes Act, the City
Act and the Town Act.
An Act to amend the Land Titles Act provides that if
a registered mortgagee is absent from the provinces when
payment is due, and there is no one else authorized to receive
payment, the money is to be paid into court.
A proposal of Messrs. Yorath and Moran, of Saskatoon,
for the construction by the Saskatchewan Paveji Highways
Commission Company, Ltd., of a system of paved toll roads
in certain parts of the province, aggregating 1,067 miles,
similar to those in California, at an estimated cost of $24,-
000,000 within ten years, was turned down by the standing
committee on agriculture.
Want Wheat Board Again
While Saskatchewan's legislative program has thus far
not been important, the session has been interesting in some
other ways. On November 10, Hon. Geo. Langley, minister
of municipal affairs, moved the following resolution, which
was passed unanimously: —
THE MONETARY TIMES
Volume 66.
"Whereas to meet war conditions and protect tlie gen-
eral public, the Government of Canada fixed a price for the
Canadian wheat crops of 1917 and 1918; and
"Whereas early in July, 1919, the Grain Exchanges were
allowed to open for the purpose of marketing the wheat
crops of 1919; and
"Wliereas, after being open for less than a month, they
were again closed by government order and by an order of
the Governor-General-in-Council, dated July 31, 1919, the
Wheat Board was ci-eated to market the wheat crop of 1919;
and
"Whereas that body marketed the wheat crop of 1919 to
the great benefit and satisfaction of the farmers; and
"Whereas, as the result of opening the exchanges to
market the wheat crop of 1920, the price of wheat has de-
clined seventy-five cents a bushel, although the world's supply
of wheat does not appear to be any larger in 1920 than it
was in 1919;
"Therefore, this assembly, representing the largest wheat-
growing province in the Dominion, urge the Government of
Canada to reappoint at once the Wheat Board, with the
chaii-man and assistant chairman of last year, to take charge
of and market the balance of this year's wheat crop."
More Branch Railway Lines
On November 17 the following resolution was intro-
duced by Mr. Gemmell, and passed unanimously. —
"Whereas there are a number of branch lines of the
Canadian National Railways in the Pi-ovince of Saskatche-
wan, some of which have been projected for many years; and
"Whereas on some of the branch lines construction work
has been carried on in recent years very slowly, and thus
prevented the development of the province and militated
against the prosperity of the people; and
"Whereas many people in the province were induced in
years past to locate in certain sections of the country by
reason of the fact that the branch lines were projected in
order to furnish much-needed railway facilities; and
"Whei-eas many people are still without such facilities;
and
"Whereas the development of the province and the suc-
cess of the people depend in a very large measure upon the
extent to which transportation facilities are provided; and
"Whereas many of the people in the province are at the
present time seriously handicapped by reason of the fact
that they have no railway facilities within reasonable dis-
tance, and are therefore compelled to spend time and money
in obtaining their supplies and in drawing their grain to
market;
"Therefore be it resolved, that, in the opinion of this
assembly, the Dominion authorities should be petitioned to
appi-opriate at the earliest possible date sufficient sums of
money to complete the branch lines of the Canadian National
Railways which are already projected into various sections
of the province, and that they should be urged to continue
construction work on such branch lines and complete such
branch lines at the earliest possible date."
Urge Lower Tariff
On December 2, Mr. Garry moved the following resolu-
tion, which was passed with just one dissenting vote: —
"Whereas this assembly has, on various past occasions,
forwarded to His Excellency the Governor-General resolutions
advocating substantial reductions in the customs tariff of
Canada and other fiscal reforms; and
"Whereas agriculture is the basic industry of Canada,
and especially of Saskatchewan, the prices received for the
products of which are regulated by world prices, whether
sold within or without Canada, the result being that the agri-
cultural industry carried all the burdens of the tariff without
receiving any of its benefits; and
"Whereas the high cost of living, which is largely the
result of the said tai-iff, bears upon our citizens, both rural
and urban, to such an extent as to gravely jeopardize the
financial ability of our people to bear the ever-increasing
load; and
"Whereas Canada is now confronted with a huge na-
tional war debt and greatly increased financial obligations,
which can be most readily and effectively reduced by the
development of our natural resources, chief of which is agri-
cultural lands; and
"Whereas our returned soldiers have heroically and at
great sacrifice, in common with their comrades of all the
allied armies, achieved for us a signal victory, and have
now returned to us, and in many instances are resuming or
beginning the business of agriculture, and deserve every con-
sideration, encouragement and fair play; and
"Whereas the protective tariff has resulted in the crea-
tion of trusts, mergers and combines, under which the com-
mon people generally have been outrageously exploited
through the elimination of competition, the ruination of many
small industries and the advancement of prices on practically
all manufactured goods to the full extent permitted by the
tariff;
"Therefore, be it resolved, that, in the opinion of this
assembly, it is the duty of the Government of Canada at the
coming session of parliament to introduce legislation which
shall have for its effect the following: —
"1. An immediate and substantial all-round reduction of
the customs tariffs.
"2. The reduction of the custom duty on goods imported
from Great Britain to one-half the rates charged under the
general tariff, and that further gradual uniform reductions
be made to the remaining tariff on British imports that will
ensure complete free trade between Great Britain and
Canada.
"3. The placing upon the free list of all foodstuffs not
included in the reciprocity agreement.
"4. The placing on the free list of all agricultural im-
plements, farm machinery, farm tractors, mining, flour and
sawmill machinery and repair parts thereof, vehicles, fer-
tilizers, easoTne, illuminating, lubricating and fuel oils, coal,
lumber, cement, fishing nets, net twines and fishermen's
equipment, as well as the raw material and machinery used
in their manufacture.
"5. The reduction of the customs duty on wearing ap-
parel and footwear and other articles of general consump-
tion (exclusive of such articles as may be regarded as
luxuries), and on such raw material as enters into the manu-
factur? of the same.
"6. The immediate extension to Great Britain of all
tariff concessions granted to other countries.
"7. The obligation upon all corporations engaged in the
manufacture of products protected by the customs tariff to
publish annually comprehensive and accurate statements of
their turnover and earnings.
"8. The public hearing before a special committee of
parliament of every claim for tariff protection by any in-
dustry."
LIABILITIES OF PRINCE'S, LTD.
E. R. C. Clarkson, liquidator for Prince's, Ltd., a Tor-
onto restaurant which started business a few weeks ago on
& large scale, presented a statement of assets and liabili-
ties to a meeting of the creditors on January 12, when a
committee was appointed to dispose of the assets. An offer
on the assets is expected in the course of a few days. If the
creditors are unable to dispose of the company as a going
concern, it will be sold retail, under which circumstances the
premises will revert to the landlord.
The liabilities are: Direct, $220,712; contingent cl&ims,
estimated, $35,000; preferred claims, .$19,280; total, $243,493.
Assets: Expenditures on building and leasehold premises,
$156,121; plant and equipment, $123,858, subject to liens of
$35,243, leaving an equity of $88,614; stores and supplies,
$20,483; claims against contributories, $690; total assets,
$265,909, showing nominal surplus to creditors of $22,416.
January 21, 1921
THE MONETARY TIDIES
i
WAYS AND MEANS OF UNEMPLOYMENT INSURANCE
Opinion is Fund Should be Maintained by Assessments on
Government, Employers and Employees — Might
Reduce Unemployment
(Special to The Monetary Times.)
Ottawa, January 20, 1921.
LEGISLATION to bring about unemployment insurance
is to be introduced during the session of parliament
commencing on Monday, February 14, 1921. The plan to be
followed will call for contributions from the worker, the
employer and the state, and it is estimated by Senator
Gideon Robertson, Minister of Labor, that a period of two
years will be needed before sufficient funds can be accumu-
lated to enable the government to deal adequately with any
period in which the unemployment situation is acute.
At a conference in Washington in October, 1919, of the
International Labor Office, created under the Treaty of
Peace, one of the resolutions accepted by the conference
called for unemployment insurance. In speaking of the
resolutions passed at the International Labor Conference,
the minister of justice said that the eight-hour day legisla-
tion referred to in one resolution was a matter for original
provincial legislation, but he said that the unemployment
insurance legislation called for had a federal aspect because
the Employment Bureau system of Canada, though ad-
ministered by the provinces, is co-ordinated by the Dominion
government. If unemployment insurance is accepted by
parliament as expected, the administration of the new legis-
lation will fall to this system of federal labor bureaux.
Labor ^^■ant.s Industry to Bear Cost
On account of the excessive amount of unemployment
this winter, both the Great War Veterans' Association and
the Trades and Labor Congress of Canada will press on the
government before and during the session the necessity of
this legislation. Their exact suggestions have not yet been
worked out, but it is known that the views of organized
labor are different from those of the government. In a
bulletin sent out this month from the head office of the
Trades and Labor Congress of Canada, their policy in this
respect is stated to be "the creation of a State Employment
Insurance Fund by assessments on industries similar to the
methods adopted with provincial compensation funds, this
to be administered under the authority of the Dominion gov-
ernment." Under this plan payments would be made from
this fund not only to those unemployed, but to those under-
employed as well. The opinion is expressed that "by plac-
ing the cost of unemployment largely on industry, greater
efforts will then be undertaken than are now made by those
controlling industry to obviate unemployment. This
memorandum, signed by Mr. Tom Moore, president, also sug-
gests that the provincial and Dominion governments should
contribute towards this fund, at least the cost of administra-
tion. Mr. Moore argues that this system will prevent a
good deal of unemployment, because it will keep up purchas-
ing power, and he thinks the government should subsidize
the plan because it will be saved a good deal of expendi-
ture which ordinarily is associated with periods of unem-
ployment. The Great War Veterans' Association is co-
operating along genera! lines with the Trades and Labor Con-
gress, but it has not worked out the details o{ its policy as
yet.
Would Increase Overhead Expense
The government does not believe this plan of "assess-
ments on industries" to be workable. It is thought that it
would add too much to the overhead charges, and would not
provide the same incentive to efficiency as the plan to be
adopted of having worker, employer and state share the cost.
Asked how he thought this plan would contribute to
efficiency. Senator Robertson said, "Take a worker in any
of the building trades. If he knows that he is working on
the last building for the season, it is only human nature that
he should try to draw that job out. The fear of unemploy-
ment is not only one of the most active agents of unrest and
discontent, but it is apt to work out in lowered efficiency in
cases such as I have described."
MANITOBA INVESTMENT SITUATION STRENGTHENS
Signs of Renewed Activity— Edward Brown and Company
Expand Business — Manitoba Hail Insurance Act
Will Likely be Amended
(Staff Correspondence.)
Winnipeg, January 20, 1921.
THE outlook in Winnipeg this week continues to show
some improvement, and the feeling which we mentioned
last week continues to be noticeable. Local bond houses
report considerable money available for investment on the
local exchange.
The firm of Edward Brown and Co. are enlarging their
offices and are putting in a private wire in connection with
the opening of a stock and bond department. They are
opening new offices for this purpose in the MrArthur Build-
ing, corner Portage and Main. The private wire is in con-
nection with the firm of Simons Day Co. This is one of the
largest grain concerns in the United States, having offices
in New York, Chicago, and St. Louis, also in Montreal ami
Toronto. This is a new venture for Messrs. Edward Brown
and Co., whose business has grown considerably in the last
few years.
Great West Loan Officers Meet
The following branch managers of the Great West
Permanent Loan Co. and Imperial Canadian Trust Co. met
in conference with the general manager, A. T. Alexander, in
Winnipeg this week; F. B. Heath, manager Vancouver
branch; S. W. McLeish, Victoria branch; G. A. Holman, Ed-
monton branch; E. E. Campbell, Calgary branch; and T. B.
Willan, Regina branch. \,
An amendment to the Hail Insurance Act in Manitoba
will be submitted at the coming session of the legislature by
A. E. August, M.L..A^., for Dufferin, sponsor of the bill at
the last session. This amendment will make it unnecessary
for any of the sixteen municipalities voting in favor of it
at the last municipal elections to take a further vote, the
one already taken remaining effective. Any municipality
under the amendment may take a vote on its own initiative
or upon petition of 2.5 per cent, of the ratepayers. As soon
as 35 municipalities vote in favor of joining the Co-operative
Hail Insurance Co., a general meeting will be called in
Winnipeg to make the necessary plans.
MEXICO WILL PAY FOR CARS
The Mexic?,-n government has accepted the terms of a
contract prepared by the American Railway Association cov-
ering the loss of American and Canadian freight cars m
Mexico during the revolutionary outbreaks in that country,
and on January 1, 1921, free interchange of traffic between
the United States and Mexico, which had been suspended
since January 1, 1919, was resumed. The Mexican govern-
ment has paid the first of four instalments aggregatmg
?486,000 for 468 lost cars, and future interchange of traffic
will be ma-de on the basis of the American per diem rate of
$1 a car per day. The contract, signed by Francisco Perez,
general director of the Mexican Government Railroad Ad-
ministration, was received by the American Railway Asso-
ciatior recently
THE MONETARY TIMES
Volume 66.
FIRE AGENTS' COMMISSIONS IN ONTARIO
UNION BANK HAD PROFITABLE YEAR
Agreement Reached With Agents Outside Toronto, but Situ-
ation as Regards Latter City is Still Unsettled
AFTER several conferences, the Ontarion Insurance De-
partment has reached an agreement with the executive
of the Ontario Fire Insurance Agents' Associat^ion regarding
agents' commissions. In place of the superintendent's original
proposal of 15 per cent, on all premiums, the present ar-
rangement is for 20 per cent, on three year business and
mercantile risks, and 15 per cent, on all other business. The
final meeting was held on January 11, and the following
statement was issued to agents on the 13th by J. S. Dowling,
of Brantford, president of the association: —
"Legislation will be enacted somewhat along his pro-
posed lines in regard to the issuing of licenses with the ob-
ject of eliminating such class of agents as he has already
suggested. In addition to this the matter of an endorse-
ment fee will become a fixed principle and every endorse-
ment fee will have a charge and the agent will retain this.
Fifteen and Twenty Per Cent.
"In regard to commissions. You know the original pro-
position was a flat 15 per cent, on everything, then he pro-
posed 15 per cent on everything but three year dwelling risks
which were to have 20 per cent. Our new arrangement with
the superintendent is that we get 20 per cent, commission on
all the three year risks, irrespective of whether they are
residences, churches, farms, etc., and we are also to get 20
per cent, on all mercantile rated buildings, irrespective of
construction and not influenced because of the use of power.
The balance of the business, which would include manufac-
turing risks and contents of mercantile buildings, would re-
main at 15 per cent. flat. These commissions are to apply
throughout the province although the Toronto rates are not
yet adjusted, but everyone will get the above rate of com-
mission no matter whether it is written by the local agent
or outside brokers.
"Your committee feels that the above solution, coupled
with the fact that it will probably obviate legislation entirely,
will meet with your approval and if so it will enable us all
to settle down to our insurance business after a good deal
of strenuous work. The committee which assisted me de-
serve your thanks for the time and energy they spent on
this work and they deserve my thanks for the very loyal
spirit of co-operation they gave me, and also for their dis-
p- 'tion to reacon these solutions out."
No Agreement for Toronto
Whether or not this agreement wdll take the form of
legislation depends to a large degree upon the agents, said V.
Evan Gray, superintendent of insurance, in a statement to
The Monetary Times. The association, moreover, does not
presume to speak for the Toronto agents, as it has very few
members in that city. In Toronto the situation is com-
plicated by the fact that some companies maintain branch
offices for securing local business while others rely on gen-
eral agencies. The agencies have an organization called
the Toronto Insurance Conference, and the latter is now
negotiating -with the' superintendent with a view to reaching
an agreement for the city business.
There may, therefore, be no legislation of this kind.
-According to Mr. Gray the average commission outside of
Toronto under the new plan will be 17.5 per cent., com-
pared to 18.6 per cent., previously. It is the intention of the
department, he said, to see that any reduction in cost secured
in this way be passed on to the public in the form of re-
duced rates. According to a circular issued on December 2,
"The Department will see that the decreased cost of carry-
ing on the business of Fire Insurance in the Province under
the proposed rules is transferred to the advantage of the
insuring public m the form of lower insurance rates."
A profitable year was experienced by the Union Bank
of Canada in 1920, due to the increased business handled by
the bank. Net profits amounted to $1,60.3,842, as compared
with $9.32,250 in 1919. H. B. Shaw, general manager, out-
lined the growth of the institution in his address at the an-
nual meeting last week. The details have already been re-
viewed in these columns.
The address of John Gait, president, was particularly
interesting, in view of the emphasis which wa« placed on the
development of the west. Among other things, Mr. Gait
explained that the satisfactory results shown by the bank
were due to the fact that its resources were fully employed
to the limit of prudence. Profits, however, were not made
at the expense of the bank's clients; current rates of interest
charged by Canadian banks, he declared, have rem&ined prac-
tically unchanged since 1914. The banks were not among the
profiteers, and the fact may not be among the least of those
which enabled this country to come through the war and
reconstruction period with relatively snicJl inconvenience. A
help to the banks in the connection was the privilege of re-
discounting permitted by the government. To quote Mr.
Gait, it "enabled Canadian banks to take care of the country's
trade throughout the period when high prices involved the
employment of a vastly greater amount of capital than for-
mei-ly, and to finance all legitimate requirements." The farm-
ing industry was the first to undergo the deflation of prices.
Both grain and livestock declined in value. The crop yield,
however, was a good one as regards quantity, while the
quality generally was higher than usual, a factor that counts
for good in connection with the general level of prices.
SECURITIES RESTRICTIONS RELEASED
On January 16, Sir Henry Drayton, finance minister,
announced that the voluntary "embargo" on the import of
securities from abroad should cease. This follows the release
of Victory bonds from control on November 29 last, and
concludes government interference with the security market
as a whole. Sir Henry Drayton said: —
"There seems to be a great deal of misconception as to
the so-called embargo. Embargo, in fact, there never was.
The only action taken was to point to those interested in
this particular business the adverse effect upon our ex-
changes of a large amount of these securities being brought
in at the time the movement was under way, and agents,
brokers and banks were asked as to whether it would not be
better to keep Canadian money in Canada for the purpose
of Canadian Isusiness when it was so sorely needed. The
conclusion they came to was that the money should be kept
at home.
"Conditions have since improved, and many of those
who were perfectly willing to do their best to conserve the
country's finances are of the opinion that the necessity no
longer exists. The arrangement was never forced and was
not a matter of government or legal control. In view of
the changed attitude of many brokers, it is not thought ad-
visable to continue the work of the voluntary committees
any longer, and they have been dissolved."
In commenting on this action, E. Gordon Wills, presi-
dent of the Toronto Stock Exchange, said: —
"The finance minister is to be commended for his action
in removing the embargo on securities. The time has long
passed when a financially sound country like Canada should
hf'Ve to resort to artificial props. The members of the stock
exchange have never believed in the soundness of the prin-
ciples involved, but have nevertheless loyally stood behind
the finance minister in his efforts to enforce the embargo.
The relief is a welcome one. I am sure the effect on public
confidence will prove to be just as satisfactory as has been
the case in the recent relisting of Victory bonds."
January 21, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
of Canada
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The Monetary Times does not necessarily endorse the statements and
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PRINCIPAL CONTENTS
EDITORIAL: page
Foreign Exchange and the Security Market 9
A "Stand-Pat" Policy Now Impossible 9
Long-Term Financing in Great Britain 10
Industries' Finances Must be Sound 10
Special Articles:
Saskatchewan Legislation of Moderate Character... 5
Ways and Means of Unemployment Insurance 7
Potatoes, Roots and Fodder Crops 14
Mining Production Decreased in 1920 18
Cobalt Ore Shipments in 1920 26
Four Hundred New Bank Branches in a Year 33
Transatlantic Trade Relations 34
Travellers' Mutual Benefit Raises Rates 34
Economic Developments in Western Canada 37
What Labor Wants 41
Western Canada Mutual Fire Insurance 44
Dispute Over Subscription to Stock » . . 46
Monthly Departments:
Trade of Canada for December 22
Dominion Finances in December 24
Whole Price Movement 24
Weekly Departments:
News of Industrial Development in Canada 48
News of Municipal Finance 52
Government and Municipal Bond Market 54
Corporation Securities Market 58
The Stock Markets 60
Corporation Finance 62
OREIGN EXCHANGE AND THE SECURITY MARKET
THAT foreign exchange rates had already -worked their
influence on the Canadian security market, in- spite of
the government's eflfort to prevent the importation of securi-
ties, is shown by the fact that the removal of this "embargo"
has not produced any noticeable change during the past week.
Even the fixing of Victory bond prices, which was a more
effective measure of control, was found during the early days
of December to have been an unnecessary restriction, and
now Victory bonds are nearly all at higher levels than they
were during the last days of price fixation. Uncertain fac-
tors affecting securities are sufficiently numerous already to
vex investors, without the added difficulty of arbitrary con-
trol, attended by sudden changes of price. In emphasizing
the fact that the embargo was never more than a voluntary
measure. Sir Henry Drayton practically admits its futility,
and has obviously changed his attitude since in October last
he warned the bond-runners that they might be black-
listed, and intimated that the restrictions might, if neces-
sary, take the form of legislation at the next session of par-
liament.
There has, during the past few weeks, been a general
strengthening of bond prices in the principal markets, which,
coupled with an improvement in foreign exchanges, has re-
moved the fear of further declines in Canada. Scarcity of
new issues also indicates that bori-owing governments, muni-
cipalities and corporations at last realize the folly of capital
expenditures at present inflated costs, especially when extra-
ordinarily high interest had to be paid on the money so bor-
rowed. Even the New York market, in spite of the high
premium on funds secured there, is, it is now realized, one
to be avoided, for the excessive volume of financing there has
meant the creation of a factor which will for many years to
come opei'ate towards a high rate for New York exchange.
The outstanding feature of the present bond situation
in Canada is the scarcity of offerings, and it is expected
therefore, that there will be a substantial movement of
securities from Great Britain to this country. Several bond
houses have representatives or connections there, and active
steps are Deing taken to show the British holder the ad-
vantages that can be offered. So long as sterling remains
around its present levels there should be plenty of these
arbitrage transactions. Another factor which should be kept
in mind, in considering the relation of foreign exchange to
security prices, is the fact that if the New York premium
comes down many of the bonds which have been sold in the
United States may come back on this market, as it was the
exceptionally high yields obtainable, not any great love for
Canadian securities, which induced American buyers to in-
vest, or rather to speculate, in our securities.
.\ "STAND PAT" POLICY NOW IMPOSSIBLE
" IT^fH AT we have we'll hold," ha« been adopted by Ameri-
» ' can labor as its policy in relation to the present
movement of reduction in prices and in costs of production.
But whatever ideal may be set up, the reality of the present
tendency cannot be overlooked. , As prices come down the
margin of producing profit is reduced, and in some cases has
disappeared. When this takes place the manufacturer's only
alternative is to shut down. Producers of raw and manu-
factured goods made large profits on the up-grade, but the
losses which have been experienced during the short period
of price reductions have already been substantial.
Among the first to suffer were the farmers, just as they
were among the first to benefit during the early years of
the war. Then they enjoyed low costs and high prices; now
they face high costs and low prices. Manufacturers
are in a similar position, and already financial state-
ments of* industrial concerns are showing reductions ir
profits, while the increase in the number of failures bears
witness to the effects of business depression on merchants
and on the smaller manufacturers. Labor on the other hand
suffered from the rise of prices, while the loss to salaried
workers, investors and others with more or less fixed money
r HE M O N E T A R V T I M E S
Volume 66.
income was still more severe, as they were not well organized
to meet the situation.
A considerable amount of unemployment already proves
that production costs are not in line with the new price
levels which are daily being established. This is a condi-
tion which will no doubt be experienced throughout the whole
period of readjustment, but once the permanence of the down-
ward movement is realized it will be recognized that all in-
terests must fall into line. Doubled incomes cannot be main-
tained in the face of a price movement which bids fair to
carry us back to pre-war days. Profits, interest and wages
must come down as part of the new movement.
INDUSTRIES' FINANCES MUST BE SOUND
LONG-TERM FINANCING IN GREAT BRITAIN
RENEWED activity in the British security markets, apart
from government loans, is indicated by the London
Joint City and Midland Bank's estimate of capital issues in
1920. These compilations of issues of new capital exclude
all borrowings by the British government, shares issued to
vendors, allotments arising from the capitalization of reserve
funds and undivided profits, issues for conversion purposes,
and loans by municipalities and county authorities, except
in cases where there is a specified limit to the total sub-
scription. The figures in all cases are based upon the prices
of issue and are as comprehensive: as possible. They do not
include issues of capital made by private companies except
where such information is "made public.
New Capital Issues* in the United Kingdom by Months
1917.
1918.
1919.
1920.
.Jan. . .
.. £ 935,625
£ 192,500
£ 18,340,586
£ 42,446,210
Feb. . .
618,883
1,275,750
9,683,737
35,213,793
Mar. . .
892,036
2,674,562
11,862,083
69,355,644
April
. . 3.530,000
1,053,739
6,048,111
45,795,840
May
3,340,764
5,320,618
17,541,224
20,860,980
June
1,503,125
2,295,959
16,823,315
27,559,699
July . .
1,429,661
4,516,135
28,277,343
43,422,343
Aug. .
. . 6,089,643
5,277,640
14,807,345
9,855,340
Sept. .
1,092,694
5,986,672
9,294,271
20,064,482
Oct. . .
2,153,000
7,233,357
24,977,183
2^,152,110
Nov. . .
. . 3,726,568
22,354,756
33,106,761
33,021,283
Dec. . .
. . 1,12.5,000
7,147,863
46,779,404
8,463,094
Year .
. . £26,436,999
£65,329,551
£237,541,363
£384,210,818
*Excluding British government loans.
That this activity is largely industrial is shown by the
following: —
Classified Distribution op New Capital Issues* in the
United Kingdom by Years
Government, Industrial
Year to municipal and undertakings
Dec. 31. railway loans. of all kinds.
1911 £108,452,000 £ 83,837,000
1912 93,404,000 113,732,000
1913 1.53,789,000 88,350,000
1914 140,128,000 59,500,000
1915 77,745,000 5,237,000
1916 29,491,000 5,252,000
1917 15,071,000 11,366,000
1918 25,769,000 39,561,000
1919 17,244,000 220,296,000
1920 75,056,000 309,155,000
Total.
£192,289,000
207,136,000
242,139,000
199,628,000
82,982,000
34,743,000
26,437,000
65,330,000
237,540,000
384,211,000
♦Excluding British government loans.
Canada is therefore not the only country which experi-
enced a revival in industrial financing in 1920; the move-
ment is widespread, and represents in large degree financing
which had been postponed because of war conditions.
REORGANIZATION of their business program to meet
changing conditions has occupied the attention of a good
many fimis during the past few weeks. A feature of the
work has been the wiping out or wiping off, or erasing from
memory — whatever phrase suits best — of overhangs or ad-
verse items that were handed down from the strenuous days
of war. Many of these matters could not possibly have con-
sideration in the warp and woof of business as it is being
shaped to-day, and are best forgotten. At the same time
firms who have the right perspective are strengthening their
sales forces and selling equipment, for all are agreed that
strenuous and more competitive days a^re ahead — if they
have not already arrived.
"To wipe these things ofi" and forget about them, so as
to start anew with a clean slate, is the only business-like
method," said B. J. McCormick, of the Canada Forge, Wel-
land, recently. "There is a . handicap in leftovers, and the
same, it seems to me, applies to conditions confronting the
dealer as well as the manufacturer. Cash on hand is more
useful to the dealer than shelves full of stagnant stock,
bought at prices which the public will not meet, for ready
money makes possible the purchase of new goods at present
values and puts the merchant on an up-to-d"te selling basis.
There is sometimes better strategy in taking a loss than in
sitting tight. A strategic loss nowadays seems to be essential
to the most effective oflFensive."
Mining production in Canada in 1920 is valued at $200,-
000,000. This is an increase of over $23,000,000, compared
with 1919, but is still far below the output which our re-
sources warrant. -s * * *
Imports into Canada in December were $13,000,000 less
than in November. While the "buyers' strike" has affected
the volume of foreign as well as of domestic business, this
decrease is in part due to lower valuations of goods im-
ported. *
A bill introduced into the French Chamber of Deputies
proposes prohibitive taxation on branches of foreign banks.
A worse blow at French foreign trade could scarcely be dealt
than the passing of such a measure, shutting off the most
direct and economical method of settlement.
The improvements in the condition of the government's
finances, as shown in the monthly statements issued, help
the security market more than did the embargo and the
control of Victory bond prices.
A reduction in wholesale prices from 304.2 in November
to 290.5 in December, these figures being percentages of the
average from 1890-1899, shows that prices can come down
just as rapidly as they went up. Moreover, the movement
may go just as far.
another U-boat fallacy
In the London market where oil shares are dealt in one
can usually hear the shrill cries of the trr.ders as they shout
"Scottish," "English," or "Romans." These names refer to
the shares of the Scottish-American Oil Co., English Oilfields
and Rumanian Consolidated Oilfields, respectively.
A passing stranger recently asked a bystander what
submarine company wp.'S being traded in in that market.
"None that I know of," said the bystander. "Why ?
Want to buy?"
"Oh, no," said the stranger, "but I hear them yelling
'U-Boats' and just wanted to know what company it was."
"Oh, that's United British Oilfields of Trinidad."
The stranger scratched his head r.^nd passed on.
January 21, 1921
THE MONETARY TIMES
Bank of Hamilton
HEAD OFFICE - HAMILTON
Established 1872
Capital Authorized
Capital Paid Up (December 31st, 1920)
Reserve Fund (December 31st, 1920)
$5,000,000.00
4,970,300.00
4,685,150.00
Directors
SIR JOHN HENDRIK, K.C.M.G., C.V.O.. President
CYRUS A. BIRGK. Vice-President
C. C. DALTON ROBT. HOBSON W. E. PHIN
I. PITBLAUO, K.C. J. TURNBULI. W. A. WOOD
Branches
At Montreal, and throughout the Provinces of
Ontario, Manitoba, Saskatchewan, Alberta and
British Columbia.
Savings Departmeot at all Offices.
Deposits of $1 and upwards received.
Advances made for Manufacturing- and Farming
purposes.
Collections effected in all parts of Canada promptly
and cheaply.
Correspondence solicited
J. P. BELL
General Manager
EXPORT TRADE
The extensive foreign con-
nections of this Bank enable
us to place at the disposal
of our customers the best
existing world-wide banking
facilities.
Our local Manager is in a
position to give you both
assistance and advice.
IMPEKIAL BANK
OF CANADA
212 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
Experienced
Banking
Servi
vice
A PERFECT commercial banking
service is only evolved by expe-
rience. A bank's value to its cus-
tomer increases proportionately
with the w^idening of its knowledge.
The Union Bank has been engaged
in commercial banking for more
than half a century, and has at-
tained a clear perception of its
duties to the banking public
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
53. OLD BRO.'\D STREET. E.C.2
THE MONETARY TIMES
PERSONAL NOTES
J. E. McKenna, who has been with the Montreal Stock
Exchanf-e firm of Redpath and Company for a number of
years, has been admitted to partnership.
L. K. File, assistant actuary of the Canada Life As-
sui'ance Company, has been appointed to supervise the pre-
paration of a civic pension scheme of the city of Toronto.
Oliver E. Hurd, until recently manager of the New
York offices of the Royal Securities Corporation, has joined
the sales organization of Nesbitt, Thomson and Company.
A. M. JMacrae, of the investment house of R. C. Mat-
thews and Company, Toronto, has been elected a member of
the local stock ex-
change. The com-
pany purchased a
seat on the ex-
change some time
ago. Mr. Macrae
has been with the
company for
twelve years. A
statement regard-
i n g the future
policy of R. C.
Matthews and
Company re-
marks: "Our ob-
ject in buying- the
seat is to place at
the disposal of our
clients throughout
the country the
best facilities for
buying and selling
Victory bonds and
other listed invest-
ment issues. We
shall continue our
policy of dealing
in the best investment securities and undei-writing whole
issues, particularly government and municipal bonds. It is
not our intention to encourage speculation, or to accept
margin accounts."
J. H. AsHDOWN, of the J. H. Ashdown Hai'dware Com-
pany, of Winnipeg and at one time mayor of that city, has
been elected president of the Western Canada Colonization
Association'.
Major H. E. Boorman, who has been manager of the
bond department at the Vancouver office of the British-
American Bond Corporation, has been transferred to the
Victoria office, where he will act in a similar capacity.
H. A. Richardson, general manager of the Bank of
Nova Scotia, accompanied by W. D. Ross, a director of the
bank, will leave at the end of this month for a tour of in-
spection of the branches of the bank in Cuba and Jamaica.
Mr. Richardson will also visit Mexico.
Manuel Riconda, president of the Czarn'kow-Riconda
Sugar Company, of New York, one of the largest sugar firms
in the world, and president of the Cuba Cane Corporation,
and W. A. Bobbins, of the English sugar firm of Edward
Grey and Company, Liverpool and London, have been added
to the directorate of the Atlantic Sugar Refineries, Limited.
With the acquisition of these two directors the Atlantic
Sugar Company acquires the advice and co-operation of an
expert in the raw material market, and an expert in the ex-
port market who are among the leading men in the world in
their line of business, an acquisition that the Canadian enter-
prise should greatly benefit fi-om.
OBITUARIES
W. C. Parwalee, at one time deputy minister of trade
for the Dominion, died at his home in Ottawa last week, at
the age of 88 years. During the course of his long official
career he was one of the most widely-known members of the
Dominion public service, which he entered as chief clerk and
accountant of the department of customs in January, 1876,
when the Mackenzie Administration was in power. He was
appointed assistant commissioner of customs January, 1885,
and commissioner of customs March 1, 1892. On the creation
of the new department of trade and commerce at the be-
ginning of 1893, he was appointed first deputy minister of
the department. He continued to hold this post until August
1, 1908, when he retired on a pension.
Sir William Gage, philanthropist and businessman, died
at his home in Toronto this week, at the age of 71 years.
He was especially known for his work amongst the con-
sumptives in this country, although his charitable effoi'ts
were not by any means confined to this one great work. In
his earlier days he was a school teacher, and later was en-
gaged in the publishing business. He was president of the
Toronto Board of Trade in 1911, and organized and was
first president of the Associated Boards of Trade of Ontario.
In business circles, he was known more especially for his
connection with the Educational Book Company, of Toronto,
as president, president of the Kinleigh Paper Mills, St.
Catherines, Ont, a director of the Imperial Bank of Canada,
and vice-president of the Chartered Trust and Executor
Company.
ROYAL BANK EXECUTIVE DISCUSSES TRADE
SITUATION
At the annual meeting of the Royal Bank of Canada in
Montreal this week, the trade situation, both in the retrospect
and prospect, was discussed. The views expressed were
optimistic, although the facts were not ignored, and coming
as they do from the executive heads of an institution partici-
pating so largely in the development of the domestic and
foreign trade of the Dominion, are of especial interest. C.
E. Neill, general manager, dealt with the growth and de-
velopment of the bank. The details have already been re-
viewed in The Monetary Times. Sir Herbert S. Holt, presi-
dent, in his address remarked : —
"The position of Canada is fundamentally sound. Con-
sidering the times, we are a fortunate people. No nation has
escaped the aftermath of the war, and throughout the world
there is disturbance or unrest. In China famine spreads
desolation, confusion and terror reign in Russia, while
Europe is grappling with complex problems. Even in progres-
sive Japan, industi-y is paralyzed. Contrast this with our
condition. Our crops are the most valuable in our history,
even at the reduced prices obtainable; bank deposits have
doubled since 1913; most merchants have set aside reserves
in the years of plenty to tide them over a lean period, and a
great part of the bonded indebtedness of the country is held
within the Dominion. Moreover, our friendship and cordial
relations with our neighbor render unnecessary the expendi-
ture for armaments which is strangling' Europe. Unemploy-
ment is less, and business failures are fewer, comparatively,
than in the United States, and when our war liquidation is
over, we should be among the first to enter upon a new era
of stable prosperity."
MERCHANTS EIRE EXPENSE RATIO
The expense ratio of the Merchants Fire Insurance Co.
for 1920 was 34.7 per cent., not 37.4 per cent, as was wrongly
nrinted in these columns last week.
Januarv 21, 1921
THE MONETARY TIMES
animniuiiiiiio
iimiiniDiiiiiiiiiiniiniiriiiiniiiiiiiimmiiiimiiiiuiiiiiiiiiuiiiiiiiiiiiiiiiiuiiiiiiiiniiiiiniiiiiiiiiiini'f
The Sterling Bank
OF CANADA
A (eature of our "Personal Service" policy is
the fact that, like all matters in which personal
attention is enlisted, it improves in efficiency
as time progresses.
Head Office
WNG AND BAY STREETS, TORONTO
Money is Worth More to You, Too
Lenders charge more interest on loans today. So why
shouldn't you get more interest on your savings deposits ?
You wouldn't refuse an increase in your wages, would you ?
Why, then, should your savings earn a less rate when you can
get 4% for it ?
The Union Trust Company will pay you interest at 4% per
annum, compounded regularly. Come and open your account
here. If you cannot convenienily call, open your account by
registered mail. Deposits promptly acknowledged and with-
drawals by mail accurately and safely despatched.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS ui
Winnipeg TORONTO London. Eng.
The National Bank of Scotland
Limited
Incorporated by Knyal Charter and Act of Parliament- Established 18'2.s
Capital Subscribed ^5,000,000 $25,000,000
Paid up 1,100,000 5,500.000
Uncalled .' 3,900.000 19.500,000
Reserve Fund 1 ,000.000 5 000,000
Head Office - EDINBURGH
WILLIA.M CARNKGIE. Gener:il ManaBcr. GEORGB A. HUNTER, Sec.
LONDON OPFICE— 37 NICHOLAS LANE. LOMBARD ST.. E.C.4
T. C. RIDDELL. DUGALD S.MITH.
Manager Assistant Manager
The agency of Colonial and Foreign Hanks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London, are
retired on terms which will be furnished on application.
The most important document a person of large or small
means is called on to prepare is his
LAST WILL AND TESTAMENT
It means the happiness and welfare of those most dear.
Ask for Booklet : " Make Your Will.'
CAPITAL, ISSUED AND SUBSCRIBED
PAID-T-P CAPITAL AND RESERVE....
.81,171.700.00
- 1.172,000.00
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OI-ITCE; WINNIPEG, CAN.
BRANCHRS :
THE STANDARD BANK OF CANADA
Quarterly Dividend Notice No. 121.
A dividend at the rate of Three and One Half per cent.
(3'2 ) tor the three months ending SIst January, 1921, has
been declared payable on the 1st of February, 1921, to
Shareholders of record as at the 17th of January, 1921.
The Annual General Meeting of the Shareholders will
be held at the Head Office of the Bank in Toronto, on
Wednesday, the 23rd of February next, at 12 o'clock noon.
Bv Order of the Board.
C- H- EASSON,
General Manager.
Toronto, December 1 5lh, 1920-
That Transitory Stage
of your allairs, wlu-ii. on your cienusc. your husmcss, your
securities, your person.il effects, are passed on to others, is
one which requires experienced management in order that
there may not be any financial loss to those who are left be-
hind and al.so that they be not subjected to troublesome
details at a time when they are mentally depressed through
their bereavement. The required management may be
secured by your nominatinj; in your Will as your Executor
THE CANADA PERMANENT TRUST COMPANY
'aid-up Capital
$ 1 .OOO.OOO
.M.innger, Ontar
TORONTO STREET
TORONTO
:h: A. E. Hessin
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
The
Trustee
CompaDV
of
Winnipeg
Ltd.
332
MAIN STREET
M- J- A. .M.
DB
LA GICLAIS
Ma
naging Director.
See
us for investm
nts i
n allocated or
Rua
ranteed loans at attractive 1
rates of
interest.
Our
Agency Depar
tnien
t IS very act
ve.
While out nf to«
n, leave
your affairs in our charge.
The Security
Trust
Company,
Limited
Head Office
Calgary,
Alberta
Liquidator, Trustee
Receiver
Stock and Bond
Brokers,
Administrator, Executor.
General Financial Agents. |
W. M. CONNACHER
Pres. and Ma
naging Director |
THE MONETARY TIMES
Volume 66.
POTATOES, ROOTS AND FODDER CROPS
Output Greater Than in 1919 — Progress of Work on
1921 Crops
THE year 1920 was better than its predecessor in respect of
production of potatoes, roots and fodder, according to
figures of the Dominion Bureau of Statistics issued recently.
On the same date good progress on ploughing and sow-
ing for the 1921 fall wheat crop was reported.
Potato Harvest of 1920
The potato harvest for the whole of Canada is represent-
ed by 138,527,000 bushels from an area of 784,544 acres, as
compared with 125,574,900 bushels from 818,767 acres in 1919.
The average yield per acre for 1920 is 176 '/4 bushels, which
compares with 153% bushels last year, and with 146 bushels,
the decennial average for the period 1910-19. By provinces
the yield per acre of potatoes is well over the decennial aver-
age throughout the maritime provinces, Quebec and Ontario.
In the western provinces the yield per acre is below average
for Manitoba, Saskatchewan and British Columbia, but is
above average for Alberta. In Manitoba the potato season
has been particularly poor, and the average yield per acre is
only 91 bushels, as against 126 bushels last year, and 150
bushels, the decennial average. In Saskatchewan the yield is
127% bushels, as against 170 bushels last year, and 148%
bushels, the decennial average. In Alberta the yield is 166
bushels, as compared with 179-;.i bushels last year, and 161%
bushels, the ten-year average. In British Columbia the pro-
duction has been greatly reduced through excessive rainfall
during September and October, and the average yield is 184%
bushels per acre on the sown area, as compared with 170
bushels last year, and 204% bushels, the ten-year-average.
The total value to farmers of the potato crop for Canada is
estimated at $134,693,000, as compared with $118,894,200 in
1919, the price per bushel ranging from 65 cents in Prince
Edward Island to $1.39 in Manitoba. For Canada the average
price per bushel is 97 cents, as against 95 cents last year; for
Quebec it is 93 cents, as against 85 cents, and for Ontario it
is 96 cents, as against $1.37.
Root and Fodder Crops
The total yield for Canada of turnips and other roots is
estimated at 114,081,000 bushels from 290,286 acres, as against
112,288,600 bushels from 317,296 acres in 1919. The average
yield per acre for the Dominion is 393 bushels, as compared
with 354 bushels last year, and with 352% bushels, the aver-
age for the ten years 1910-19. Hay and clover yield 13,378,-
800 tons from 10,379,292 acres, as compared with last year's
record total of 16,348,000 tons from 10,595,383 acres. The
yield per aci-e this year is 1.30 ton, as compared with 1.55 ton
last year, and 1.50 ton, the decennial average. Alfalfa yields
616,700 tons from 238,556 acres, as compared with 494,200
tons from 226,869 acres last year, the yield per acre being
2.60 tons, as against 2.20 last year, and 2.40 tons, the ten-
year average. Fodder com shows a yield of 5,404,000 tons
from 588,977 acres, an average of 9.15 tons, as against 9%
tons last year, and 8.85 tons, the decennial average. The
total yield of sugar beets is 314,000 tons from 36,288 acres,
as compared with 240,000 tons from 24,500 acres in 1919, an
average of 8.65 tons, as compared with 9.80 tons last year,
and 9.10 tons, the ten-year average. The total area under
root and fodder crops, including potatoes, turnips, etc., hay
and clover, alfalfa, fodder corn and sugar b'ets. amounts to
12,317,943 acres, as compared with 12,494,584 acres in 1919.
The total value of these crops, at local prices paid to farmers,
amounts for 1920 to $584,634,500, as compared with $560,151,-
800 for 1919. The average price per ton for hay and clover
for Canada is $25, as against $20.72 last yeer, the price for
1920 constituting the highest on record.
Fall Wheat and Fall Ploughing
The total area sown to fall wheat in Canada for the sea-
son of 1921 is estimated to be 792,200 acres, as compared with
846,800 acres, the area sown in 1919 for 1920, and with 814,133
acres, the area harvested. This is a decrease of 54,600 acres,
or 6 per cent., from the area sown, and of 21,933 acres, or 3
per cent., from the area harvested. In Ontario the area sown
is 738,500 acres, as compared with 794,100 acres, a decrease of
7 per cent. In Alberta there is an increase sown of from
38,400 acres to 38,800 acres, or 1 per cent. In British Colum-
bia the acreage is 14,900, as against 14,300, an increase of
600 acres, or 4 per cent. The crop is reported as having made
good growth, its condition on October 31 being given, in per-
centage of the decennial average, as 102 for all Canada, 102
for Ontario, 98 for Alberta, and 104 for British Columbia.
On the whole excellent progress has been made this fall
in the ploughing of land intended for next year's crops. In
the maritime provinces the percentage ranges from 57 in Nova
Scotia to 81 in Prince Edward Island, only Nova Scotia falling
behind the proportions of the two previous years. In Quebec
the percentage fall-ploughed is 88, as against 87 last year, and
62 in 1918. In Ontario 73 per cent, has been ploughed, as
against 77 per cent, last year and 64 per cent, in 1918. In
Manitoba the excellent proportion of 83 per cent, was reached,
which compares with 64 per cent, last year, 54 per cent, in
1918, and 40 per cent, in 1917. Saskatchewan accomplished
45 per cent., or nearly half, this proportion being larger than
in any year since 1914, when it was 77 per cent. In Alberta
the proportion is 29 per cent., as against 34 per cent, last
year, and 35 per cent, in 1918. In British Columbia 65 per
cent, has been ploughed, as against 56 per cent, last year,
and 48 per cent, in 1918. For the whole of Canada the per-
centage is 71, as against 66 last year, this year's percentage
being larger than in any year since 1914, when the same per-
centage of 71 preceded the bumper harvest of 1915. The
amount of land which it is possible to plough in the fall has
usually an important bearing upon the next year's harvest, so
that the prospect to this extent is favorable.
SHADOWS SHOULD NOT BLIND US
In his address at the annual meeting of shareholders
of the Bank of Hochelaga, Beaudry Leman, general manager,
referred to the transition from a condition of almost uni-
versal war to one of partial peace and to the outburst of
extravagance and pleasure-seeking that followed, reducing
normal production. This quickly brought recognition of the
fact that credit could not alone support the economic struc-
ture of the world, and that hard work must really be its
sustaining power. He added that in view of the vastly
superior means of production it is reasonable to hope that
the wastage of war will be repaired in a no-distant future.
Mr. Leman reviewed to some length the growth of the
various industries and trade, etc., dwelling particularly on
the achievement's of the province of Quebec, and in con-
clusion remarked : —
"This cursory examination of conditions, if it discloses
some shadows, should not blind us to the many redeeming
features which will fully develop provided we are willing' to
face the difficulties which confront us and do not leave their
solution to future generations. The perusal of financial re-
views and publications dealing with economics creates much
the same impression as is derived from reading, without
sufficient preparation, a medical book ; one discovers that he
is afflicted with all kinds of diseases, many of which might
prove fatal. One should not forget that symptoms should
not be taken separately but in relation to one another, and
that mankind, like the human body, possesses wonderful and
powerful vitality and means of recuperation. Canada is
young and holds in abundance natural wealth which only
awaits to be developed, man-power and financial backing.
The program which would seem to commend itself to Cana-
dians of all races and classes is to work hard and efficiently,
not only to bear their share of public charges, not only to im-
prove conditions of life, but also to accumulate by thrift the
resources necessary to the development of their country."
The financial statement of the Bank of Hochelaga has
already been reviewed in these columns.
January 21, 1921
THE MONETARY TIMES
Bank of New Zealand
ESTABLISHED IN 1861
Bankers to the New Zealand Govi
CAPITAL
Paid-Up Capiul ($13,528,811) aad Retcrve Fopd
($12,166,250)
UDdivided Profitt
Aggrcfalc Aueli at 3lil Marcb, 1920
S 25,695,061
713,039
257,500,944
-'^^'B'iiniii,
Head Office:
WELLINGTON
NEW ZEALAND
H. BUCKLETON
General Manager
THE HANK Ol- .\KV\' /.P.ALAND has Branches at
Auckland. WcMinston. Chrislchiirch. Uunedin, and 203 other
places in New Zealand ; also at Melbourne and Sydney
(Australia), Suva and LevuUa (Fiji), Apia (Samoa), and
London.
The Bank has facilities for transacting every description
of Banking Business. It invites the establishment of Wool
and other Produce Credits, either in sterlinK or dollars, with
any of its Australasian Branches.
LONDON OFFICE: 1 Queen Victoria Street, Mansion House, E.G. 4
CHIEF CANADIAN AGENTS .
Canadian Bank of Commerce Bank oi Montreal
fHomeBank'^Canada'
REPORTS ON INVESTMENTS
Any information regarcJing stocks or bonds or
other form of security may be readily and freely
obtained at this Office. We are in close com-
munication with the Bond Department of our Head
Office, and they will be ple&sed to give our in-
quiries on your behalf their prompt attention.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s-l
THE
Weyburn Security Bank
Chartered by Act oi the Dominion Parliament
head office. weyburn. saskatchewan
Branxhes in Saskatchewan at
Weyburn. Yellow Grass, McTaggart, Halbrite, Midale
Griffin. Colgate, Panginan, Radville, Assiniboia, Benson,
Verwood, Readlyii, Tribune, Expanse, Mossbank, Vantage,
Goodwater, Darniody, Stoughton, Osage, Creelman and
Lew van.
A GRNKRAT, BANKING BUSINESS TRANSACTED
H. O. POWELL. General Manager
TH€ MCRCHANTS BANK
Head Ofrice : Montreal. OF CANADA
Eit.-ibllsbed 1864.
Capital Paid-up. $10,029,622 Reserve Fund and Undivided Protits, $9,475,585
Total Deposits (30th October, 1920) - Over $170,000,000
Total Assets (30th October, 1920> Over $209,000,000
Board of Directors :
SIR H. MONTAGU ALLAN Vice-President
Sir F. OrrOkk- Lewis, Bakt.
Hon. C. C. Ballantyne
K. Howard Wilson
Faroi^har Robertson
Geo. L. Cains
Alfred B. Evans
Thomas Ahearn
Lt.-Col. J. R. MooDiE
Hon. Lorne C. Webster
A. J DAWES
E. W. Kneeland
(Gordon M. McGregor
General Manager - D. C. Macarow
Supt, of Branches and Chief Inspector : T. E. Merkitt
General Supervisor - - W. A. Meldrum
AN ALLIANCE FOR LIFE
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
Many of the large Corporations and
Business Houses who bank exclus-
ively v^ith this institution have done
so since their beginning.
399 Branches in Canada, extending from the Atkntic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramsay and C. J. Crookall, Agents
London, England, Office, 53 Cornhill : J. B. Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
16
THE MONETARY TIMES
Volume ()(.!.
EXCHANGE QUOTATIONS
Glazebrook and Cronyn, exchange and bond brokers,
Toronto, report local exchange rates as follows: —
Buyers. Sellers. Counter.
N.Y. funds 13% pm 14 pm
Mont, funds Par Par Vs to k
Sterling —
Demand $4.28 $4.29
Cable transfers 4.29 4.30
Bank of England rate, 7 per cent.
New York quotations of exchange on European coun-
tries, as supplied by the National City Co., Ltd., as at Jan-
uary 20, 1921, follow: London, c&ble, 378y2; London, cheque,
377%; Paris, cable, (j.64; Paris, cheque, 6.63; Italy, cable, 3.60;
Italy, cheque, 3.59; Belgium, cheque, 6.91; Swiss, cheque,
15.75; Spain, cheque, 13.60; Holland, cheque, 33.20; Denmark,
cheque, 18.95; Norway, cheque, 18.80; Sweden, cheque, 21.55;
Berlin, cheque, 1.74; Finland, cheque, 3.20; Roumania, cheque,
1.38; Poland, cheque, 15.00; Greece, cheque, 7.55.
BANK BRANCH NOTES
The Royal Bank of Canada has opened branches at
Montego Bay, Jamaica; and at Layton and Danforth Avenues,
Toronto. The Canadian Bank of Commerce announces the
opening of a branch at Robs St., Vancouver.
The Royal Bank of Canada has purchased from the Bank
of Nova Scotia Lot No. 167, fronting on 224 St. James St.,
Montreal, with building.
Steel contract for branch bank of Bank of Montreal at
Granby, Que., has been let to MacKinnon Steel Co., Ltd.,
Sherbrooke, Que.
John B. Monk, formerly manager of the Bank of Ottawa
at Winnipeg, has made announcement of his appointment as
general agent for the province of Manitoba of the Guardian
Insurance Co. of Canada.
Selby B. Mastin, who has been manager of the Royal
Bank of Canada at Stratford, has been appointed manager
of the branch at the corner of Yonge and College Streets,
Toronto.
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways of the first two weeks
in January:—
Canadian Pacific Railway.
1921. 1920. Inc. or dec.
January 7 $3,303,000 $3,171,000 + $ 132,000
January 14 3,276,000 3,331,000 + 55,000
Canadian National Railway.
January 7 $1,814,057 $1,642,208 + $ 171,849
January 14 2,168,969 1,864,220 + 304,749
Grand Trunk Railway.
January 7 $1,958,441 $1,568,805 + $ 389,636
January 14 2,088,691 1,682,809 4- 405,882
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canadp/s transcontinental railways for the month of De-
cember:—
Canadian Pacific Railway
1920. 1919. Inc. or dec.
December 7 $5,215,000 $3,797,000 + $1,418,000
December 14 5,179,000 3,935,000 + 1,244,000
December 21 4,484,000 3,715,000 -|- 769,000
December 31 5,540,000 5,403,000 + 137,000
Totals $20,418,000 $16,850,000 -(-$3,568,000
Canadian National Railway
December 7 .$2,678,306 $2,050,134 -f- $ 628,172
December 14 2,550,249 1,898,694 -|- 651,555
December 21 2,600,174 1,982,080 -|- 618,094
December 31 4,605,346 2,816,622 + 1,788,724
Totals $12,434,075 $8,746,9.30 -f- $3,686,-545
Grand Trunk Railway
December 7 $2,460,523 $1,845,848 + $ 614,675
December 14 2,441,248 1,832,822 -f 608,426
December 21 2,231,757 1,767,231 + 464,526
December 31 3,721,954 2,681,970 + 1,089,984
Totals $10,8.55,482 $8,127,871 -f- $2,777,611
CANADIAN BUSINESS FAILURES ^.
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended January 14, 1921,
in provinces, as compared with those of previous weeks and
corresponding weeks of last year, are as follows: —
Date.
B
O
6
3
c
^1
a:
a
M
C9
Eh
o
Jan. 14 . .
..13
23
4
1
3
0
0
0
0
44
14
Jan. 7 . .
.15
14
3
2
3
1
2
1
0
40
11
Dec. 31 . .
. .16
7
2
1
3
3
4
0
0
36
18
Dec. 24 . .
..10
15
2
1
6
0
0
3
0
37
WEEKLY BANK CLEARINGS
The following
ended January 20,
week last year:- —
are the Bank Clearings for the week
1921, compared with the corresponding
Week ended Week ended
Jan. 20, '21. Jan. 22, '20.
Montreal $109,509,216 $143,692,532
Toronto 94,509,046 99,518,491
Winnipeg 53,000,200 45,366,911
Vancouver 14,139,868 14,933,843
Ottawa 8,875,262 8,759,129
Calgary 7,398,523 8,646,478
Hamilton 6,359,827 6,782,150
Quebec 6,392,024 6,234,599
Edmonton 5,136,860 4,972,005
Halifax 3,736,287 4,303,834
London 3,181,235 3,389,266
Regina 3,796,185 3,474,042
St. John 2,750,996 3,454,543
Victoria 2,765,805 2,498,662
Saskatoon 1,962,931 1,876,694
Moose Jaw 1,457,804 1,552,335
Brantford 1,187,056 1,369,324
Brandon 733,528 690,426
Fort William . . . 946,066 1,040,892
Lethbridge 674,353 734,719
Medicine Hat 479,307 527,421
New Westminster 539,836 520,787
Peterboro 852,807 763,955
Sherbrooke 981,399 1,184,296
Kitchener 856,446 1,346,716
Windsor 2,776,438 2,744,393
Prince Albert . . . 368,477 501,230
Totals $335,367,782 $370,879,673
Moncton 1,025,722
Changes.
- $.34,183,316
5,009,445
7,633,289
793,975
116,133
1,247,955
422,323
157,425
164,855
567,547
208,031
.322,143
703,547
267,143
86,237
94,231
182,268
43,102
+
+
+
+
+
94,826
60,366
48,114
19,049
88,852
202,897
490,270
32,045
132,753
$35,511,891
January 21, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED I8I7)
PAID UP CAPITAL - -j- ......$ 23,828,500.00
RESERVE FUND - - - - C^^A 16,375,000.00
RESERVE LIABILITY OF PROPRIETORS - ^B^^^lmf 23 828,500.00
^^^^Ua^^V - ----- $ 64,032,000.00
AGGREGATE ASSETS 31st MARCH, 1920 • ^^^tftasS---**-^ - $377,721,211.00
Sir JOHN RUSSELL FRENCH. K.B.E.. General Manager
351 BRANCHES and AGENCIES in the Australian States, New Zealand, Fiji. Papua (New Guinea) . and London. The Bank transacts every description
of Australian Banking Business. Wool and other Produce Credits arranged, s
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BUSINESS FOUNDED I 795
INCORPORATED IN CANADA 1897
AMERICAN Bank Note Company
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BANKNOTES, BON DS, MUNICIPAL DEBENTURES, STOCK
CERTIFICATES, CHEQUES AND OTHER MONETARY DOCUMENTS
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TORONTO
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THE MONETARY TIMES
Volume C6.
Mining Production Increased in 1920
Ontario Well in Lead, With British Columbia Second— The Coal
Problem and its Importance— Gold Production Going Up, but
Silver Output Falls Off — Manitoba's New Mining Field
By R. GOLDWIN SMITH
ri'^HE production in Canada of the more important metals
A during 1920 is estimated by the Department of Mines
as follows: Gold, $16,000,000 in value; silver, 13,500,000
ounces; copper, 82,500,000 pounds; nickel, ()1,500,000 pounds;
lead, :!5,500,000 pounds; zinc, 42,000,000 pounds; pig-iron,
1,080,000 short tons; steel ingots and direct steel castings,
1,220,000 short tons. The production of these metals in 1919
viras: Gold, $15,850,000 in value; silver, 16,020,000 ounces;
copper, 75,053,000 pounds; nickel, 44,545.000 pounds; lead,
43,827,000 pounds; zinc, 32,194,000 pounds; pig-iron, 917,781
short tons; steel ingots and direct steel castings, 1,030,342
short tons.
The total production of coal in Canada during 1920 is
estimated on the basis of a nine months' record collected by
the Dominion Bureau of Statistics at not less than 16,000,000
short tons. The production of coal in 1919 was 13,681,218
short tons.
The total value of the mineral production in Canada
during 1920 is estimated at about $200,000,000. The total
value of the production in 1919 was $176,686,390. The highest
value of the mineral production obtained in any previous year
was $211,301,897 in 1918.
Canadian Mining Industry Expanding Steadily
Previous to the opening of the present century the devel-
opment of the mining industry of Canada had been compara-
tively small. The mineral resources of the Dominion were
little known. The nickel fields of Sudbury had been discov-
ered but the commercial value of the deposits was not real-
ized. Neither Cobalt nor Porcupine had been discovered.
Since 1900 the industry has grown by giant strides, and this
can be no better demonstrated than by giving production fig-
ures over a period of fifty years: —
Metallic Non-metallic Total value
1889 $3,251,299 $10,762,614 $14,013,913
1899 19,651,182 29,582,823 49,234,005
1909 44,156,841 47,674,600 91,831,441
1914 59,386,619 69,476,456 128,863,075
1918 114,549,152 96,752,745 211,301,897
1919 73,262,793 103,423,597 176.686,390
1920 (est.) 200,000,000
Canada's chief products at the present time, in the order
named, are coal, nickel, gold, copper, silver and asbestos.
Ontario Leads Provinces
In the aggregate value of production from tlie mines On-
tario leads the other provinces by a large margin, and has led
the way for a number of years. Its ascendancy is due to
the rich silver, gold and nickel-copper deposits in northern
Ontario. British Columbia, which lanks second, contributes
chiefly copper and coal, while Nova Scotia comes third with its
coal and iron, and Alberta, with its almost unlimited coal
resources, as yet for the most part unexploited, stands in
fourth place. Quebec, which is in fifth place, is distinguished
for its asbestos mines. Mineral production by provinces dur-
ing the year 1918 and 1919 was as follows: —
1919 1918
Ontario $65,842,826 ,$94,694,093
British Columbia _' 34,258,267 42,835,509
Alberta 20,815,049 23,109,871
Quebec 21,341,829 19,605,347
Nova Scotia 23,213,751 22,317,108
Manitoba 2,846,565 3,220,424
Yukon 1,963,965 2,355,631
New Brunswick 1,675,606 2,144,017
■Saskatchewan 1,118,055 1,019,781
When referring to the minerals that Canada has to im-
port, such as oil, it must be borne in mind that this country
has great wildernesses as yet unexplored. The country has to
import most of its iron ore, but the chief source of supply is
Newfoundland, the iron mines of which are controlled by Can-
adian and British capital.
Our Mineral Wealth
But in other directions this country's minerals are very
rich. Canada contributes 80 per cent, of the world's nickel
supply; the asbestos deposits of Quebec are greater than those
of any other country; while the iron and coal deposits of New-
foundland are among the largest in the world. For many
years Canada has ranked third as a silver producer, while its
gold mines which are being developed in various parts of the
Dominion are increasing steadily in importance.
Oil and Coal Deposits
News of great interest has come from northwestern Can-
ada regarding the success of the Imperial Oil Company in
bringing in what appears to be a rich oil well at Fart Nor-
man on the Mackenzie River. While the discovery is too far
away to be of commercial value for some years to come, nev-
ei-theless should a rich reservoir of oil be proved to exist in
the Mackenzie area the time will not be far distant when it
will be tapped to supply the increasing needs of the world.
While the oil fields of western Ontario are supplying a fair
volume of oil, and Alberta fields have grown in importance,
the contribution of Canadian fields is small as compared with
the country's requirements. Over 90 per cent, of the quantity
used is imported, the amount produced in Canada being 8,435,-
000 gallons, as against 451,211,000 gallons imported. The
vital importance of finding and developing oil fields in this
country is thus demonstrated.
In view of the serious shortage of coal in central Canada
and the dependence of Ontario on the United States for sup-
plies it seems an anomaly to state that in eastern and western
Canadaone-sixthof the world's known coal deposits are located.
Some day, perhaps before long, economic conditions will force
the people of this country to organize in such a way that Can-
ada will not be left hopelessly dependent on outsiders, at least
for coal.
The approximate production of the leading minerals of
Canada in 1919 and 1918 was as follows: —
Value— 1919 Value— 1918
Copper $14,041,549 $29,163,450
Gold 15,858,749 14,687,875
Pig iron 899,406 1,204,703
Lead 3,057,788 4,055,779
Molybdenite (exports) _ 84,228 434,528
Nickel 17,817,953 36,830,414
Silver 17,418,522 20,597,540
Zinc 2,328,998 2,746,620
Asbestos 10,658,946 8,936,805
Coal 54,051,720 55,752,671
Mica 273,305 268,373
Natural gas 4,071,572 4.370,622
Petroleum, crude 744,677 866,554
Salt 1,308,407 1.285,039
Ontario Gold Exceeded Silver
An outstanding feature of the year 1920 in the mining in-
dustry of Ontario was the fact that for the first time since
1903 (when silver was first discovered in Cobalt) the value of
gold produced exceeded that of silver. The change was due in
part to the continued decline in silver output, but also in part
January 21, 1921
THE MONETARY TIMES
Strong Convincing Evidence
THE value of Imperial Lubricants is best
measured by the results they give. Bigger
output, steadier and longer service from machinery,
lower operating expense — all are made possible by
their regular use.
In the accompanying list there is a right grade
of oil for any make of machine and every moving
part. All grades are of the same high quality.
Carefully formulated to give dollar-for-dollar
lubrication.
The success of countless Canadian industries
is closely tied up with Imperial Lubricants. These
testimonials from representative firms speak for
themselves.
Entirely Satisfactory
We have been using Imperial Lubricants jor
several years. We are entirely satisfied with their
gtiality, and the servite could not be improved upon.
— Vancouver Lumber Co. Limited.
A Grade for Every Need
We hive found Imperial Lubricants perfectly
satisfactory and of very hitih grade. The fact that
your company makes such a large line of lubricating
oils has enabled us to make proper selections for the
different machines we have to lubricate,
— Garden City Paper Mills Co.
Imperial stocks are always a\ ailable. Imperial
Engineers will gladly achise you regarding lubri-
cation. Write to 5() ("hurrh St.. Toronto.
Lubricants
For Manufacturing,
■Mining and Milling
CYLINDER OILS
ImpirUI Valve Oil
Imperial Cylinder Oil
Imperial Capitol Cylinder Oil
Imperial Beaver Cylinder Oil
Imperial 20th Century Cylinder
on
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il Atlantic Red Oil
il Junior Red OH
il Bayonne Engine <
il Arlo Compreaaor Oil
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Five Canadi an %finerie^ Branches In All Cities
THE MONETARY TIMES
Volume 66
to the fact that the gold-mining industry is expanding stead-
ily. While some of the silver mines of northern Ontario ap-
pear to have many productive years ahead, it is evident that
the future lies with tlio pold mines and the nickel-copper fields.
While final figures foi' the year 1920 have not been com-
piled yet, the approximate gold production of Ontario amount-
ed in value to $12,500,000, as compared with $10,451,683 in
1919. The output in silver totalled $10,600,000, as against
$12,913,316.
The aggregate output of metalliferous mines of the prov-
ince in 1920 was approximately $46,000,000, an increase over
1919 of about $5,500,000, but a decrease as compared with
the banner year 1918 of $20,000,000. The total mineral pro-
duction for 1920 was approximately $67,000,000, an increase
of $9,500,000, but a decrease of over $13,000,000 in 1919 from
1918. In view of the substantial manner in which the mining
industry is developing now, it may be anticipated that rapid
strides in the production, especially of gold, nickel, copper and
iron, will be made during the next five years.
The nickel-copper mines contributed more to the total out-
put in 1920 than any other class; the total for nickel being $15,-
700,000, as compared with $11,971,931 the year before. Cop-
per production decreased by half a million to $3,161,616.
The substantial increase in the production of mines in
1920 was due chiefly to the growth in nickel output, the sharp
decline in silver ofl'setting the increase in gold output. In-
creases were recorded in pig iron, cobalt and platinum, while
decreases were shown in the production of lead and copper.
The following table gives the approximate output from the
more important classes of metalliferous mines in the province,
with comparisons with 1919 and 1918: —
Value— 1920 Value— 1919 Value— 1918
Gold $12,519,109 $10,451,688 $8,502,480
Silver 10,661,759 12,913,316 17,415,882
Cobalt 822,324 916,337 1,688,477
Nickel 15,700,000 11,971,931 27,840,422
Lead (pig) 142,012 90,490 149,841
Copper 3,161,616 3,708,596 8,532,790
Pig iron and iron ore__ 1,429,642 1,248,384 1,989,100
Gold on the Increase
The gold-mining industry of the province is comparatively
new but some of the hidden secrets of the mines are gradually
being disclosed. The leading properties have been developed
to great depth, the Hollinger and Mclntyre shafts being down
below 1,200 and 1,400 feet respectively. A favorable aspect
of the mines as greater depth is attained is that ore bodies
become more consistent and values increased. The sheared
zones in all the gold camps that have been developed are close
to the perpendicular, and geologists express the belief that
values will be maintained as far down as the mines can be
worked on a commercial basis. The same conditions appear to
exist not only in Porcupine, but also in Kirkland Lake, Boston
Creek and West Shining Tree.
In 1920 the Hollinger Consolidated produced close to $7.-
000,000 in gold, while the Mclntyre contributed over $2,000,000
and the Dome close to $2,000,000. Porcupine Crown, Dome
Lake and Davidson Consolidated produced smaller amounts.
The first three named and the Davidson Consolidated, a newer
property, have built up large reserves of ore, while all of the
gold properties are as yet in the early stages of development.
In the Kirkland Lake camp, which is younger than Porcu-
pine, rapid progress has been made. The camp has made
good. Three properties, the Lake Shore, Kirkland Lake and
Teck-Hughes are steady producers, and several other proper-
ties will join the list shortly, including the Wright-Hargrave.s
and Tough-Oakes.
At the present time the list of dividend-payers in the gold
camps is small. Hollinger paid 8 per cent, in 1920, Mclntyre
15 per cent.. Dome 10 per cent., and Lake Shore 10 per cent.
A favorable recent development in gold mining in the
province has been several large mergers. To be a permanent
success gold mining must be carried on on a big scale and a
large output demands big ore-bearing areas. The Davidson
Gold Mines amalgamated with several adjacent properties
which carry the same general ore bodies, the merger being
known as the Davidson Consolidated Gold Mines. The control
of the merger has virtually been sold to a syndicate of strong
English capitalists. Another English syndicate has secured
control of a merged group of properties in Kirkland Lake
camp, including the Tough-Oakes, Burnside and probably the
Sylvanite; also the Aladdin-Cobalt, which controls the Cham-
bers-Ferland mines in Cobalt. The new English company 's
kno\vn as the Kirkland Lake Proprietory 1919, Ltd. The Dome
Mines have taken control of the Dome Extension Mines, which
has added materially to the company's resources.
Silver Mines on Decline
While the output and ore reserves of the Nipissing Mines
in Cobalt are on the decline, this leading producer of the fa-
mous silver camp is still paying dividends at the rate of 30
per cent, per annum. The McKinley-Darragh maintains its
dividend at 12 per cent, per annum and its ore reserves are be-
ing fairly well maintained. The Coniagas Silver Mines is
paying dividends at the rate of 10 per cent., while the Mining
Corporation of Canada pays 50 cents per share per annum.
Other properties, including the Beaver, Crown Reserve, Ken-
Lake, La Rose and Temiskaming, have been contributing to
the production of the camp in a lesser degree. Developments
in the Gowganda silver camp are more promising, the Castle
property, owned by the Trethewey Company of Cobalt, having
been added to the list of shippers.
From a stock market standpoint the precious metal mines
of Ontario have been neglected during most of the year. The
exploitation of the gambling instincts of the public in the past
is largely responsible for lack of interest in mining stocks.
This is unfortunate, as the gold camps are developing valua-
ble properties, largely with outside capital.
The International Nickel Company, which with the Brit-
ish-American Nickel Corporation largely controls the known
nickel-copper deposits of the Sudbury district, had an unfavor-
able year in 1919, but showed better results in 1920, due to an
improved market for its chief product. The deposits of the
International Company are known to contain some 20,000,000
tons of ore, sufficient to supply the company's requirements
for many years to come.
The Asbestos Industry
The asbestos industry in Quebec has been making sub-
stantial headway due to an increasing demand for the mineral.
The Asbestos Corporation of Canada, which is the leading pro-
ducer, has a daily capacity of 4,500 tons. The asbestos of the
mines, while short, is flexible and strong and its uses are in-
creasing. Most of the world's available supply of asbestos
comes from Quebec.
British Columbia Mining
Mining and lumbering are the two chief industries of
British Columbia, and mining has developed rapidly in late
years. Copper, gold and coal are the chief products, and the
bulk of the province's output of copper comes from the smelt-
ers of the Consolidated Mining and Smelting Co., in which
the C. P. R. has a heavy interest, and the Granby Consolidated
Co., which is controlled largely by United States capital. The
first-named company has the distinction of producing copper,
lead, zinc, gold and silver. The output of British Columbia
mines fell off sharply when the war came to an end but pro-
duction is now on the increase again.
Manitoba's Mining Areas
This review must not close without a brief reference to
the newly-developed mineral fields of northern Manitoba,
chiefly copper and gold. It is estimated that the Flin Plon
copper mine, with 24,000,000 tons of ore in sight, will develop
into one of the most important properties in the Dominion.
The Motor Union Insurance Co., Ltd., which for over a
year has been writing automobile business as a non-tariff
company, has joined the Canadian Automobile LTnderwriters'
.Association.
January 21, 1921
THE MONETARY TIMES
INTEREST
RETURN
INVEST YOUR SAVINGS
in a 5^% DEBENTURE of
7 he Great West Permanent
Loan Company
SECURITY
Paid-up Capital $2,413,018.81
Reserves 1,050,000.00
HEAD OFFICE, WINNIPEG
BRANCHES: Toronto, Regina, Calgary,
EdmontOD, Vancouver, Victoria ; Edinburgh,
Scotland.
SIXTY-FIVE YEARS
is a long time in the history of this young Canada of ours, yet during
all that period we have been safeguarding and assisting in the increasing
of the savings of many thousands of Canadians. The steady progress
the Corporation has made bears testimony not only to the confidence
investors have in this old institution, but also to the unexcelled facilities
we extend to depositors.
Interest allowed at
THREE AND ONE-HALF
per cent per annum, paid and compounded hilf-yearly.
The Corporation makes a special feature of Savings Accounts, and
we'comes the small depositor.
Canada Permanent Mortgage Corporation
14-16 TORONTO STREET - - TORONTO
Paid-up Capital $6,000,000.00
Reserve Fund (earned) 5,750.000.00
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
.Masonic Temple Building, London. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T, H. PURDOM. K.C.. President NATHANIEL MILLS. .Manager
The Hamilton Provident & Loan Society
Head Office. King Street, Hamilton. Ont.
Capital Poid-up. $1,200,000. Roerve Fund and Surplua
ProfitK, $1,280,570.59. Total Aesetii, $4,764,339.21.
TRUSTEES AND EXECUTORS are authorized by Law to invest Trust
Funds in the DEBENTURES and SAVINGS DEPAKTHhNT of this
Society.
GEORGE HOPE. President I). .M. CAMERON. Treasurer
Ontario Loan
& Debenture Co.
LONDON I.MCORPORATED 1870 Canada
CAPITAL AND Undivided Profits .. $3,900,000
lORT TERM (3 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
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511
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A. M. SMART, Manager
/^VER 200 Corporations,
^'^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office. No. 13 Toronto Street
Capital Account, S'M.SSO.i
Res
: Fund, !i(G7«.000.0«
eserve
Total Assets. »3,-,'49.154.S«
President, WELLINGTON FRANCIS, Esq., K.C.
VicePresident, HERBERT LANGLOIS. Esq.
Debentures issued to pay 5%. a Legal Investment for Trust Funds.
Deposits received .it 4% interest, withdrawable by cheque.
Loans made on improved Real Est.ite on favorable terms.
WALTER GILLESPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for iuvestiueiit in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inquiries Invited
ern«ral Naiiagrr Lleut.>Col. «. B. DORBELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts aj Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
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Judicial District in Manitoba and the Swift
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22
THE MONETARY TIMES
Volume 66.
Canada's December Purchases Abroad Reduced
Trade Statement Shows Decrease in Imports of Nearly Thirteen Millions— Exports
Slightly Increased Sales of Animal Products Decline While Agricultural and Vege-
table Products Advance -Adverse Balance Has Fallen to Twenty-Eight Millions
TN the December trade statement which has just been pub-
^ lished by the Department of Customs, the continuance of
the tendencies which developed earlier in the year are shown.
E.xports show an increase of less than $2,000,000," as com-
pared with November, but the principal change is in im-
ports, which show a reduction of nearly $13,000,000 for the
month.
There were only two important changes in export
figures. Agricultural and vegetable products sent out of
the country increased by slightly more than $6,000,000, while
on the other hand animal and animal products declined more
than $3,000,000. Exports of the last-mentioned commodities
are only half of what they were in December, 1919, while
agricultural and vegetable products have increased by a
similar percentage.
All imports, with the exception of iron and steel and
non-metallic minerals, show reductions for the month. Fibres
and textiles show the principal decline of $3,000,000.
A continuance of the tendencies manifested in the past
three months would fulfil prophecies of those who have pre-
dicted a favorable trade balance for Canada for the fiscal
year ended March, 1921. The adverse balance at the end
of December was only $28,414,478, as against a figure of
$164,000,000 at the end of September, 1920.
Details of the December statement and for the nine
months of the fiscal year, together with comparisons, fol-
low:— •
I.WI>«»KT!< KSTEUEIt FOR HOMI':
C'ONsiii.wr
rio.v
•
Month of December J
Nine months ending December
1919
1920
1919
1920
Frte
Dutiable
Free
Dutiable
Free Dutiable
Free
Dutiable
Agricultural and vegetable products, mainly foods
$
2,871,042
5,308,377
4.567.168
7,940,871
1.218,612
1 .672,725
1.528.673
5,094,441
1,317,140
2.224,299
$
13,415,128
2,631,479
4,3J4,I36
13,623,380
1,585,221
12,213.544
2,999,354
4,385,859
2,376,398
3,235,585
$
«
» S
$
32,015,298
31,123,579
22.461.81!
64,875,430
13,977.865
37,226.208
13,147.366
65,547.501
19,442.461
29,844,054
S
101.909,380
31 .629.956
27.330,602
145,%4.790
16,496,114
164,938,i;90
32,952.291
95.393,044
27,197.429
29,861.728
Agricultural and vegetable products, other than foods
Animals and animal products . . .
2,437,167 4,171.492
1,418,2,32 i 2,267,726
4,483,049 1 7,350,130
922,327 1,174,694
30,433,230
27,394,507
45,596,208
8.188.168
24.152,890
13,H79,183
45,156,083
13,381,199
21,256,908
15,558,168
39,808,883
95,375.989
12,.505,511
108.886,772
23.065,089
45,855,598
17,725.624
26.057.912
Fibres, textiles and textile products
Chemicals and chemical products
Iron and steel, and manufactures thereof
Ores, metals and metal manufactures, other than iron and steel
Non-metallic minerals and products. . .
1,029,550
7,131„559
1.719,910
2,530.151
3.098,324
11.750,410
3,311,618
2,!;46,124
Wood, wood products, paper and manufactures
Miscellaneous
Total
33,743.348
60,810.084
27,498,757
58,383,396
254,460,863
476,481,736
329.661.573
673.673,924
Duty collected
15,905,033
11,521.195
129,934,039
145,442,224
Month of December
Nine months ending December /
I9I«
1920
1919
■ 920
Domestic
Foreign
Domestic
Foreign
Domestic
Foreign
Domestic
Foreign
Agricultural and vegetable products, mainly foods
$
41,020,146
3,221,342
37,042,833
5,039,928
1,585,382
8,395,461
5,468,862
3,619,690
18,527,990
9,620,171
$
375,749
44.335
926,657
168,137
476,598
1,517,180
133,915
186,586
86.693
223.662
84.482,276
2,558.389
18,734,584
1,785,044
1,196.001
8.627.564
3,827,093
3,315,381
23,270,641
1,487,352
$
61,638
29,828
,56,957
267,378
110,183
464.617
71.259
133.471
113.168
357.157
$
296.042.016
24,009,737
249,862,850
23.299, 1 1 1
16,797,879
61,302,651
37,588,366
21,910,818
156,179,917
54,852,030
4,200.693
1.382..i08
5.901.945
3.124,533
3,231,831
9,675.601
2.163,294
512,575
324,662
4,291,774
8
369,229.377
20,423.383
156.538,386
14,480,565
15,856,137
64,021,643
38,093,755
32,911,211
234.074,415
29,291,847
t
1,170,446
Agricultural and vegetable products, other than foods "
241,439
1,167,946
Fibres, textiles and textile products
2,112.084
Chemicals and chemical products
Iron and steel and manufactures thereof.'.'.
921,167
7,656,826
2;^!,' ™f ^?v l"** "'^""' "manufactures, other than iron and steei
Non-metalic minerals and products
630.691
767,293
Wood wood products, paper and manufactures ','."
380,829
2.741,756
Total
133,541,805
4.139,512
149,264,325
1,665.656
941.845,375
34,809,416
974,920.719
RECAPITVLATiOX
Month of December
Nine months ending Dec.
Merchandise entered for consumption . . .
Merchandise, domestic, exported
Total
■Merchandise, foreign, exported
Grand total, Canadian trade.
January 21, 1921
THE MONETARY TIMES
NOTICES
ONTARIO PULP AND PAPER COMPANY, LIMITED
Incorporated under the laws of the Province of Ontario
To the Holders of Six Per Cent. First Mortgage 30-Year
Gold Bonds of the above-named Company
Notice is hereby given that at a Special General Meeting
of Shareholders of The Spanish River Pulp and Paper Mills,
Limited, held at the Head Office of the Company, in the
City of Toronto, on the 23rd day of June, 1920, the Share-
holders approved of a plan to pay the accumulated divi-
dends on the Preference Stock of the Company up to June
30th, 1920, amounting to 42%, by the declaration of a
Preferred Stock dividend, and that in accordance with Clause
7 of a Supplemental Mortgage dated the 13th of January,
1915, made between The Spanish River Pulp and Paper
Company, Limited, and The Royal Trust Company, the
holders of the various bonds mentioned in said clause includ-
ing the holders of the bonds to whom this notice is directed
will receive their pro rata share of 10';'f of the total amount
of the Preference Stock of The Spanish River Pulp and
Paper Mills, Limited, issued in accordance with the said
plan so approved by the Shareholders as aforesaid. Under
the terms of the said Clause 7 of above Supplemental Mort-
gage the holders of the various bonds therein mentioned are
also entitled to lOC'f of the total amount of any cash divi-
dend paid to the holders of the Common and or Preference
shares of The Spanish River Pulp and Paper Mills, Limited.
A cash dividend of 1%9'r for the quarter ending September
30th, 1920, has been distributed to both Common and Pre-
ferred Shareholders, and bondholders will be accordingly
entitled to their pro rata share of such dividend.
In order to distribute to the holders of the above-men-
tioned Six Per Cent. First Mortgage 30-Year Gold Bonds
their proportion of said Preference Shares under said Clause
7, and to provide a convenient means of distributing the
above and all future cash dividends to bondholders, it will
be necessary that all holders of said bonds, whether of
registered bonds or bearer bonds, send their bonds at once
to The Royal Trust Company, 59 Yonge Street, Toronto; or
The Royal Trust Company, Montreal, Quebec; or Agents of
the Bank of Montreal. 64 Wall Street, New York City; or
City Trust and Savings Bank, Da>-ton, Ohio; or The Bank of
Montreal. 47 Threadneedle Street, London, E.G., England,
in order that the bonds may be stamped with a notation
that the holders thereof have received their respective pro-
portion of the said Preference Stock of The Spanish River
Pulp and Paper Mills, Limited, and have also received the
necessary certificate with coupons attached to enable them
to collect their pro rata share of all cash dividends now or
hereafter distributable to bondholders.
Bondholders are urged to send in their bonds to any of
the above places at once, in order that the above distribution
may be made without undue delay.
THE ROYAL TRUST COMPANY,
Trustee.
Toronto. November 24th. 1920. 350
THE SPANISH RIVER PULP AND PAPER MILLS,
LIMITED
Incorporated under the laws of the Province of Ontario
To the Holders of Six Per Cent. First Mortgage Sinking
Fund Gold Bonds of the above-named Company
Notice is hereby given that at a Special General Meeting
of Shareholders of The Spanish River Pulp and Paper Mills,
Limited, held at the Head Office of the Company, in the
City of Toronto, on the 23rd day of June, 1920, the Share-
holders approved of a plan to pay the accumulated divi-
dends on the Preference Stock of the Company up to June
30th, 1920, amounting to 42*;^, by the declaration of a
Preferred Stock dividend, and that in accordance with Clause
7 of a Supplemental Mortgage dated the 20th of January,
1915, made between The Spanish River Pulp and Paper
Mills, Limited, and the Montreal Trust Company, the
holders of the various bonds mentioned in said clause includ-
ing the holders of the bonds to whom this notice is directed
will receive their pro rata share of W/c of the total amount
of the Preference Stock of The Spanish River Pulp and
Paper Mills, Limited, issued in accordance with the said
plan so approved by the Shareholders as aforesaid. Under
the terms of the said Clause 7 of above Supplemental Mort-
gage the holders of the various bonds therein mentioned are
also entitled to 10'"f of the total amount of any cash divi-
dend paid to the holders of the Common and/or Preference
shares of The Spanish River Pulp and Paper Mills, Limited.
A cash dividend of 1%% for the quarter ending September
30th, 1920, has been distributed to both Common and Pre-
ferred Shareholders, and bondholders will be accordingly
entitled to their pro rata share of such dividend.
In order to distribute to the holders of the above-men-
tioned Six Per Cent. First Mortgage Sinking Fund Gold Bonds
their proportion of said Preference Shares under said Clause
7, and to provide a convenient means of distributing the
above and all future cash dividends to bondholders, it will be
necessary that all holders of said bonds, whether of registered
bonds or bearer bonds, send their bonds at once to the Mont-
real Trust Company, 61 Yonge Street, Toronto; or The Mont-
real Trust Company, Montreal, Quebec; or The Agency The
Royal Bank of Canada, 68 William Street, New York City; or
City Trust and Savings Bank, Dayton, Ohio; or Montreal
Trust Company, 2 Bank Buildings, Princess Street, London,
E.C.2, England, in order that the bonds may be stamped with
a notation that the holders thereof have received their respec-
tive proportion of the said Preference Stock of The Spanish
River Pulp and Paper Mills, Limited, and have also received
the necessary certificate with coupons attached to enable them
to collect their pro rata share of all cash dividends now or
hereafter distributable to bondholders.
Bondholders are urged to send in their bonds to any of
the above places at once, in order that the above distribution
may be made without undue delay.
MONTREAL TRUST COMPANY,
Trustee.
Toronto, November 24th, 1920. 351
.Announcement of the striking of oil by the Sparten Oil
Well has started a boom in oil-drilling in all fields in the Van-
couver-Fraser Valley area. The Sparten well struck oil at
1,500 ft. Contracts were let out and work started on the
building of storage tanks to hold huge quantities of the crude
oil as it oomes from the gusher, until it is shipped away to
the refinery.
The Monarch Building, 26-28 .Adelaide St. W., Toronto,
has been sold to the Dominion of Canada- Guarantee and
Accident Insurance Co. The purchase, which totals around
.f200,000, was negotiated by the Provident Investment Co.
The property has a frontage of 42 ft. by a depth of 80 ft.
The building is of stone and brick construction and is eight
stories high.
THE MONETARY TIMES
Volume 60
NATIONAL REVENUE INCREASED IN DECEMBER
WHOLESALE PRICES CONTINUE DOWNWARD
Expenditures Substantially Decreased — Income and Business
Profits Taxes Produce Good Results
Index Number For December Dropped to 290.5 — Nearly all
Classes of Commodities Showed Declines
THE financial statement of the Dominion government for
December shows that revenue increased from $39,517,313
at the end of November to $48,260,393. Income tax with an
increase of close to $9,000,000 and business profits tax with
an advance of about $3,500,000 are the principal changes, and
are responsible for the revenue showing. At the same
time ordinary expenditures decreased by nearly $11,000,000.
The revenue and expenditure account for the nine
montlrs ended December 31, 1920, stands out very favorably,
as compared with last year. Expenditure on capital account
.is also less burdensome, as a result of greatly reduced dis-
bursements for war and public works. Details with com-
parisons, are shown in the accompanying table: —
PUBLIC DEBT
Liabilities
Funded Debt —
Payable in Canada
do in London
do in New York
Temporary Loans
Bank Circulation Redemption Fund
Dominion Notes
Savings Banks—
Post Office Savings Banks
Dominion Government Savings Banks
Trust Funds
Province Accounts
Miscellaneous and Banking Accounts . . . .
Total Gross Debt.
NVESTHENTS —
Sinking Funds
1919 1920
$373,544,585 20 S458,.i65.0S9 25
235,1 15.662 67 320,319.429 25
1915,806.056 56 ! 2071.128,585 55
336.001,469 72
135,873,000 00
424.436.064 96
5,959,083 15
304.852,675 42
32,135.428 82
11,763.293 4
12.556,679 83 '
11,920,481 20 I
45,791,276 86 1
336.001,469 72
135,873,000 00
95,839,000 00
6.311,522 76
283,213 551 42
29,779.-.!23 99
9.782,730 74
13,462.978 19
11.920,481 20
38,129,542 43
3237,095,509 66 3031,442.085 97
138,428.922 53 138.245,630 00
Province Accounts.
19.684.813 45 I 24,966,C,i4 97
138,428,922 53} 138,245,630 00
2.296,327 90 ' 2,296,327 90
949,192,111 49
: Assets
557,715,610 15 , 949.192,111 49 : 557.715.610 IS
1109,602.17537 1 723,223,623 02
27,042,973 05
Custo
.&Cs
Post Office .
Pbc. Wks.,Ry
War Tax Revenue-
Inland Revenue. .
Business Profit Tax
Income Tax
Other War Tax Rev.
Other Revenue Accts
13,951,06326 117,085.864 85
3.627.014 971 31,358,043 03
2,200,000 00; 15,000.000 OC
4.330.524 96 34,667,984 57
1,283.788 75
5,663,232 68
3,166,527 98
Total 35.937,227 13
E.\PENDITURE —
Int. on Public Debt..
Agriculture
Pensions
Pub. Wks.Con. Fund
Post Office
Dom. Lands & Parks
Soldiers Ld.Settlm't
" Civil Re-Estab.
Other Expend. Accts.
Total
11,250,916 3;
25,266,205 46
5.510,485 65
988,524 36
12,836,698 30
253,964,722 59
18,499,328 76
-1,536 72
604,606 27
1.015,801 16
1,453.908 941
267.574 68
-129,266 97
3,952,446 46
9,021.835 38
91,718,332 71
2,863,413 18
14,300.081 93
4,998,017 97
14,315.470 13
2,282.020 1 1
24,427,553 01
20,553.125 52
61,762 812 !5
34,684.697 961 237,2',!0,826 71
10.431.797 57
2,715 695 67
2.400,000 00
4,836,475 77
8.509.961162
6,061,618 09
10,593,296 21
14.780 37
2,696,769 10
134.807.860 79
18.788,467 22
16,500,000 00
36,429,749 00
57,477,323 98
25,723,276 72
19,736,286 74
1.148,081 90
23,743,628 72
48,260,393 4 1 344.354,675 07
17.849,448 081
397,823 241
4,737,154 50i
1,503,156 021
1,952,145 731
-4.290 07i
1.498,546 69]
2,512 415 75
16,667.619 151
1 16,089.765 76
3.470,840 12
25.427,631 50
6,627,613 45
14.387,183 88
2,714,343 58
3,185,578 49
25.642,113 40
87,917.858 44
47.114,019 09! 285.462,928 62
Expenditure on Cap-
ital Account. Etc.
17.240,622 86
3,981,231 90
77,604 00
21,299.458 76
239.709,184 01
32.588,598 87
121.665 91
272.419,448 79|
358.949 S3
4.898,419 84
9,322,491 31
22.947,825 68
Public Works, includ'g
Railways and Canals
Total
5,257.369 37j 32.270,316 99
The above statement represents only the receipts and payments which have
passed through the Books of the Finance Department up to the last day of the
FURTHER substantial declines in wholesale prices are re-
flected in the December statement of index numbers as
prepared by the Department of Laboi-. The index number
for that month fell to 290.5 as compared with 304.2 in No-
vember; .322.7 in December, 1919; 288.8 in December. 1918;
251.7 in December, 1917; 137.6 in December, 1914; ^nd 137.1
in December, 1913.
By groups, all classes of commodities showed declines,
with the exception of dairy products and house furnishings.
The former increased from 322.1 in November to 340.0 in
December, while the latter was stationary.
The following table gives the details for December with
comparisons: —
(DEPARTMENT OF LABOUR
FIGURES)
6E.t;
^5
Index N
UMBERS
•Dec.
1920
*Nov.
1920
*Dec.
. 1919
Dec.
1913
1. Grains and Fodders:
6
4
5
15
ti
6
3
2
17
9
B
3
9
1
3
(
3'
16
10
4
B
5
25
1
3
2
1
2
20
1
i
3
11
11
12
10
33
6
4
10
14
20
14
48
fi
4
2
4
16
16
4
6
7
17
251.9
227. B
301 0
261 1
311 4
314.6
211.1
481.6
320 8
340 0
215 5
278. B
236 5
239.0
243.3
221 0
249.3
173.4
i2sl
270.3
210 1
3a) 7
212 9
256 3
306 7
302 2
178.0
3J4.8
493 5
266.0
328. B
162 .5
248.6
301.9
231 8
2?5,8
171 4
273 2
330.4
352.5
263.3
317.6
457.0
266.8
382.7
336.5
451.3
312.0
161.1
286.5
390.2
228.1
364.6
298.0
210.3
265.9
2.i2.1
S05.4
275.3
308.3
349.8
25.6
301.3
331.0
32-2.1
2 .'5 R
278.6
243.2
177.1
266.7
■/27.7
305.8
176.1
212.3
280.3
210.1
339.0
221.1
271.3
318.7
328.4
177.6
4H2.3
i63.1
266.0
337.5
182.7
280.3
301.9
250.7
■?82.1
1!'3.3
273.2
244.4
352.5
269.5
319.3
480. 5
271.5
395.1
363.5
431.3
51i.O
16t.l
286.3
390.2
232.3
459.4
30*. 7
208.9
301.3
334 6
3819
300 5
314 4
337 9
3i3 9
2.6 6
41H.2
326 i
335 2
227.2
272 6
242 4
229 7
2ifl.2
270 7
40^ 0
■218 3
286 6
272 2
216 1
327 6
•.!25 y
■267 3
f93 8
370 2
/31 3
643 3
197.1
277 8
399.7
472 7
311 5
339 7
3:7 8
223 9
208 1
215 3
2^24 7
249 2
■245.3
247 6
406.9
230 '2
425.3
338.7
419 2
404 9
161 4
2.53 1
an 8
■214.4
1608 3
316.2
210 4
576 7
"3227
112.7
116.0
159.1
141.0
11. Animals AND Meats:
219.1
Hogs and hog products
174.4
150.2
195.1
188.1
III. Dairy Products
183.5
151.7
168.1
157.2
V. Other Foods:
f a) Fruits and vegetables
Fresh fruits, native
Fresh fruits, foreign
141.1
100.3
116.9
Fresh vegetables
Canned vegetables
All
(a) Miscellaneous groceries
Breadstuffs
179.0
95.9
130.8
122.8
110.3
107.7
Condiments
All
VI. Textiles:
Woollens
Cottons
96.4
111.9
138.6
117.9
96.3
213.5
Flax products
113. 0
101.7
1366
VII. Hides. Leather. Bootsand Shoes;
Hides and tallow
Leather
189.0
151.4
155.7
)66.2
VIII. Metals AND IHPLEBENTS :
Iron and steel
101.4
128 4
106.9
All ;
113.3
IX. Fuel and Lighting :
Fuel. ..
129.2
92.2
All
114.4
X. Building Materials;
183.8
112.8
140 0
141. B
XI. House Furnishings;
147.2
130.9
Table cutlery
Kitchen furnishings
All
72 4
124 8
128.1
XIII. Miscellaneous;
Raw Furs
All commodities
262t
290.5
S04.2
1.17.1
s off the market, fruits, vegetables, etc.
"Mineral Prospects in Southeastern Manitoba" is the
title of a 55-page booklet just issued by the Manitoba gov-
ernment, through the Publicity Commissioner, Parliament
Buildings, Winnipeg.
January 21, 1921
THE MONETARY TIMES
liiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiii^
Banque d'Hochelaga
I FORTY-SIXTH ANNUAL MEETING |
1 Dear Sirs: J
1 The Directors beg to present their report on the operations of the Bank for the year ending November 30th, 1920: g
I PROFIT AND LOSS ACCOUNT, 30th November, 1920 |
1 CREDIT DEBIT |
1 liiiiri.c It Credit uf ITofit .ind Loss AcL-oimt, Divideua No. 116, piuU 1st March. 1920 $100,000.00 1
■ ' '29tli November 1919 * 76,0W.56 Dividend No. 117. paid 1st June. 1920 100,000.00 m
= Net iM-otlts tor the' year ending SOtli November, 1920, Dividend No. 118, paid 1st Sept., 1920 100,000.00 H
1 ' after deducting expenses of management. Interest Dividend No. 119, payable 1st Dec, 1920 100,000.00 g
= accrued on deposits, rebate of Interest on dls- $400,000.00 ^
= counts and making full provision for all bad Amount carried to Officers' Pension Fimd _... 20,000.00 g
= and doubtful debts 649,739.92 Reserve for Dominion Government Tax _ 50,000.00 m
— ' Reserve for Bank premises 60.000.00 B
Subscriptions to charitable and i)atriotic funds 12.000.00 m
Amount carried to "Reserve Fund of the Bank" 100,000.00 m
Balance at credit of Profit and Loss Account, 30th m
November, 1920 83,804.48 m
$725.804.48 — $725.804.48 J
BEAtiDHY LEMAN. General Manager. 1
IIUTOIS. filler Aicciirilaril. .1 A. VAII-LANCOFRT. President. M
BALANCE SHEET, 30th November, 1920 |
LIABILITIES
Notes of the Bank In i-iicuhilioh - $7,166,864.00
Kalaiice due to Canadian Coveniiiieiit 3,421.500.00
Deposits not bearing liilciest 10.387,347.95
Deposits bearing Interest (liicliidlng Interest
accrued to date of statement) 45,888,983.50
Balances due to Banks and Banking Corre-
spondents In the United Kingdom and For-
eign Countries 490.681.44
Balance duo to Banks In Canada - 1.226.48
Acceptances under Letters of Credit 148,877.37
Caplliil SliK'k paid in
Iti-scfM' Kiinil
Irplaiincd Dividends
Dividend iia.vable 1st Dei-eml«-i . lii.'n
Balance of Profit and Loss Account
fo^^va^d
$ 4,000,000.00
4,000,000.00
4,635.59
100,000.00
Deposits in the Central Gold Reserves
Notes of other Banks
Cheques on other Banks
Balances due by other Banks in Canada
Balances due by Banks and Banking Corre-
spondents elsewhere than In Canada
Deposit with the Minister of Finance for the
purposes of the Circulation Fund
),094.80
l.OOO.OO
!.875.70
r,923.11
955,128.79 g
200,000.00 ■
Dominion and Provincial Government Securi-
lles, not exceeding market value $ 2,231.022.63
Canadian Municipal Securities, and British.
Foreign and Colonial Public Securities
other than Canadian 6.010.772.91
Railway and other Bonds. Debentures and.
Stocks (not exceeding market value) 124.914.16
Call and short (not exceeding thirty days)
loans In Canada on Bonds. Debentures and
Stocks
Loans to cities, towns, municipalities, parish
and scliool districts
Other current loans and discounts In Canada
(less rebate of interest)
Overdue debts (estimated loss provided for)....
Real Estate other than Bank premises
Mortgages on Real Estate sold by the Bank
Bank premises at cost price (less amounts
written oft)
Liabilities of ciistomers under Letters of Credit
as per contra i
Other assets not included In the foregoing
"09.70 m
4.390,767.19 I
$39,315,275.21 M
2,403,228.49 ■
40,503,753.20 ■
56.934.98 m
296.348.46 m
167,648.50 1
2,726.845.33 =
148.877.37 1
75.009.27 m
A COURTOIS. Chief Accountant.
AUDITORS' CERTIFICATE
We beg to report to the Shareholders uf the Banyue d'Hochelaga that in acc'ordance witli Section "36" of tlic Bank Act. we have checked the
cash and verified the securities of the Bank at the Chief Office as at November 30th. 1920, as well as at another time during the year, and found
they agreed with the entries in the books in regard thereto.
We have also examined the accounts and verified the cash and securities at some of the principal branches during the year.
We have examined the books and accounts at the Head Office and haie compared the above Balance Sheet with these books and with the certi-
fied returns from the brandies. In our opinion, the Balance Sheet is properly drawn uii so as to exhibit a true and correct view of the state of
the Bank's affairs according to the best of our information and tlie explanations given us. and as shown by tlie books of the Bank.
We have obtained all the Ipformation and explanations required by us and. in our opinion, the transactions of the Bank, which have come
under our notice, have been within tlie powers of the Bank.
S. ROGER MITCHELL, C.A.,
of Marwick. Mitchell & Co
GEO. GONTHIER. L.I.A..
of Gonthier & Midgley.
Auditors.
a Montreal, loth December. 1920. ' g
iiiniiiiiiiiiriiiiiiiiii Mill iiiiHiii luiiiiiiiiiiiiiiiiiiiniiiiiiiiii i i i iiiiiii hiiiihiiiiiiiiiiiiiiiiiiiii ii iiiiiiiiii iiiiiiiiiiiiniiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii mi iiiiii iiiiiiiiiiiiiiiii i miiiniini ni
THE MONETARY TIMES
Volume 66.
COBALT ORE SHIPMENTS, 1909-1920
In tons of 2,000 lbs.
Mine
•1909
" "3'6!85:
51.38|
648.86
' " 8.50
517.881
566.82'
95.47
27.35
1,225.471
'806.93
3,167.52
"1*1*3*90
1910
1911
'"27.10
20.00
790.81
1,275.19
277.74
622,85
281.30
2,111.32
1912 1
1913
1914
1915 j
1916
1917
1918
1919
1920
Aladdin Cobalt
Badijer
" 140.06
1,185.77
48.40
885.92
329.40
296.80
'4"r.57
402.97
1,251.64
'214.34
501.29
230.00
1,085.22
'1,944.77
458.85
86.48,
2,119.87;
561. 65|
"l'7!35
694.55;
788.10
3,"5"l"l".40
65.20
'2,67"3!40!
'l,'8'6"9!27
"7*1*1! 43
126.35
432! 97
22!22
243.24
!!!!!!!
31.25
"967 31
"* 57*9.10
1
'"1 '5*0! 35
292.21
66.13
401! 54
223.78
105.14
1,196.33
2,762.54
610.06
21.56
1,620.40
791.15
12.96
6"o'9! 14
933. S5
87.21
3,275.14
8.80
20.00
2,865.66
'l,'950.22
"7"o'3!43
332.18
""'aoo
457.93
" 146.12
20.00
48.05
201.98
406! 26
"'5*8*7! 54
'"20.50
392.07
608! 30
308.06
495.71
919.01
1, '950. 73
587.03
1,217! 26
1,067.00
4!o0
"6'47!95
628.42
"l",'5"82!54
2,903! 50
223.37
.533.40
'l,"2'3'5!67
"5'2'3'21
460. iiS
122.52
50.05
398! 9*"
"I'sV.if
20! Of
'l05!4i
' 417! 5(
*6r3'.2
'62'l!63l
567.33
260.981
326.57!
117.77
491.. 33
370.05
54V.65
422.43
' '4"ro!46
1,348.33
286.88
4,019.49
" 227!64
3,227.58
34.85
113.13
Beaver
■^Buffalo
96.39
Campbell, C. H ,
Casey Cobalt
Chambers Ferland . .
City of Cobalt
Cobalt Lake
Cobalt Provincial. . .
Cobalt Townsite
tCobaltComet(Drn))
Colonial ■
310 39
!!!'!.! ;!:!.!::::i
20.00
310.99
2,194.41
178.60
1,261.4
2,184.25
!3*4*3!68
260.33
5,088.78
134.12
5,131.53
703.51
714.83
114.10
1,813.89
977.32
'"102.98
102.44
898.88
1,292.58
20.00
3,581.54
634.22
914.25
956.14
51.04
8->l!55
22.58
l",09"9!49
'3,"l'6'8!54
'l,"2'7'3!37
1,794.25
109.97
43.90
!!!!!!!!
"8'8'3!i4
505.55
34.86
1,067.26
tCrown Reserve ....
Dominion Reduction
Edwards & \\ right . .
19.97
472.00
Green Meehan
20.00
453.66
.533.96
'l,"3'8'2.76
Hudson Bay
tKerr Lake
KingEdwai-d
743.04
1,173.42
146.58
6,757.21
'l,08o!32
1,625! 54
1,778.85
1,221.87
2,563.29
'4'7'3!47
'' "396.i2
685.30
'loos! 80
\ ""125.4.^
)
> 19! 68
)! "552.4:
i. "l'24!2t
131.04
229.97
1,184.32
340.01
519.37
"l,'087.62
350.88
204.37
" 767.35
267.71
60.41
"1,007! oi
Lost and Found
2,3*9*3!39 '3,'23*s!64
eVs's's.Sl 'iaj'2.20
1 s nn
McKinley Oanagh.
Mining Corp. of Can.
Cobalt Lake
Townsite City. .
Nancy Helen
National
Nipissing
North Cobalt .. .
Northern Customs . .
Nova Scotia
O'Brien
Penn Canadian
Peterson (Leases) . .
Gould
Little Nipissmg.
Nova Scotia
Seneca Superior
Pittsburg Loraine.
Provincial
Right of Way
1,056.49
'rr6'.32
6,47'o'.52
6.87
224.79
1.419.11
339.01
'"3'9!62
121,15
1, '608! 99
2,02 .00
[ 1,907.70
....
'2",'927!82
'251! 01
558 . 14
407.17
"l05!07
2,954.59
2,272.18
214.41
3,541.52
2,555.05
1,445.90
' 25i2!63
3,049.81
1,916.44
1,196.19
828.62
1,266.88
1,813.18
"4,"2"3'6!06
"1", 626. 84
371.75
'138.57
782.94
290.90
81.00
16.77
"211! 31
75.80
' 674.78
173.83
47.93
46 52
20.00
32.70
322.38
608.57
285.62
"s'liiie
'""52.00
981.41
28.30
"l56!84
'i',Vi'9.ii:
536.64
38.8
24. If
628.44
22.40
28.45
100! 54
636.06
2 72
92.30
855.60
"602.98
)
726.37
30.54
1
149.06
316.64
"852* i 4
'l",'l'3'4!5C
1 "461! ie
'"24"6!52
"■"2*5!6c
324! 8-
32.0C
435.6C
37.30
95.61
1
Silver Queen
Strong, \\. t
Temiskaniing
Temiskaming Cobal
43! 76
34.77
592.73
. ...
310.6-
276.79
71.03
Wyandoh
...". ...
Totals
29,942.9£
33,976.9"
24,921.7
21,631.79
20,916.16
18,220.7
} 15,936.5;
. 15,044 0(
20845.7f
18974. 8(
111,608.92
12,197.82
'
♦ The shipments for 1904 totalled 158.55 tons ; for 1905, 2,336.01 tons ; for 1906, 5,836.59 tons; for 1907, 14,851.34 tons, and for 1908,
" t In addition to the shipments by this Company, the Dominion Reduction Company shipped from this mine and two others, 2,322 tons
of ore, which are included in the total shipments of 15,044 tons in 1916.
t Absorbed by Mining Corporation in November.
MONTREAL CLEARING HOUSE ASSOCL\TION
Among the changes made at the meeting of the Mont-
real Clearing House on January 14, was the election of M.
S. Bogert as vice-chairman, replacing J. D. G. Kippen; W.
•J. Finucane was elected to the committee, which now con-
sists of H. B. Kenwood (chairman), M. S. Bogert (vice-
chairman), C. W. Dean, F. G. Leduc, R. L. Ritchie, H. B.
Walker and W. J. Finucane. The routine business was gone
through with the presentation of the high and low figures
for each day, each month, etc., which showed Montreal to be
the ninth city in size of clearings on the continent.
SUCCESSION DUTIES COLLECTION
.According to a report from the Quebec Provincial Treas-
urer's Department, the duties to be collected on the estates
of the late Hon. S. N. Parent, Victor Chateauvert and Wil-
liam Power will amount to nearly $100,000, being on a tax-
able amount of nearly two million dollars. In the case of
Hon. Mr. Parent the taxes could have been collected by-
Quebec or Ontario, but the former province was chosen by
the heirs. It is also announced that William Powers has left
one year's salary to all his employees.
January 21, 1921
THE MONETARY TIMES
UNION BANK OF CANADA
IN STRONGEST POSITION
IT HAS EVER HELD
Fifty-sixth Statement Reveals Very Strong Cash Position Built Up During Past
Year — Total Assets Increased $60,000,000 Since 1916 — Savings Deposits Again
Show Marked Increase — Quick Assets to Liabilities Increased from 47.23 p.c.
to 54.35 p.c. — There are now 393 Branches and Agencies.
The fifty-sixth Annual General Meeting of the share-
holders of the Union Bank of Canada was held at the Head
Office, in Winnipeg, at twelve noon, on Monday, January 10th,
1921. Among those present in the large gathering were: —
Sir William Price, John Gait, G. H. Thomson, Stephen
Haas, W. R. Allan, G. H. Balfour, Hume Blake, M. Bull, Sir
John W. Carson, C.B.; E. L. Drewrv, S. E. Elkin, A. Hitch-
cock, J. S. Hough, K.C.; F. E. Kenaston, W. H. Malkin, K. O.
MeCulloch, G. M. Black, D. N. Finnie, George Kidd, K. T.
Riley, H. B. Shaw, J. W. Hamilton, F. W. S. Crispo, Geo.
Wilson, J. S. Hiam, W. J. Dawson, H. A. Robson, C. A. Neel,
L. J. F. Van Riemsdyk, Dr. Harvey Smith, John W. Ward,
Max Heppner, A. R. Leonard, H. A. Mullins, J. H. TurnbuU,
E. F. Stephenson, Isaac Campbell, K.C.; J. B. Waddcll, W. J.
Christie, C. A. Adamson, W. K. C. Fisher, D. H. Blain, C. M.
Scott, W. H. Williams, M. Snow, J. B. Persse, W. A. Windatt,
J. A. MacLeod, P. K. Dickson, A. \L Stewart, W. W. Mac-
Millan, F. W. Drewry, J. A. Tanner, C. D. Shepard, Jas.
Fisher, K.C; C. P. Wilson, K.C.; J. Woodman, G. A. Merrick,
S. T. Hopper, J. D. Mclntyre, K. F. Gilmour, N. R. Nagle,
D. F. Rankino, G. S. Orde, S. E. Rae, J. Anderson, G. S. Har-
rison, R. H. Baird, A. A. Walcot, J. W. Millar, H. F. Forrest,
E. D. McGregor, W. J. Cummings, C. R. Sanders, C.
C. King, C. H. Hartney, C. MacMillan, G. F. Tweed, H. R.
Tweed, .Joseph Anderson, F. O. Robertson, P. Vibert, A. G.
Ross, T. Craig, A. F. S. Tatum, A. J. Wilson, W. W. Barry,
T. S. Fulton, J. G. Vicq, D. M. Neeve. P. D'E. Strickland, S.
B. O'Connell, W. R. Bell, F. J. Willis, F. J. Boulton, E. J.
Lockie, F. K. Wilson, G. R. Tinning, W. J. Swaisland, C. C.
Balfour, H. C. McLean, W. Dunn, E. J. Rovcroft, W. Mitham,
O. F. Seeber, A. P. N'asmith, W. M. Chandler, G. T. Sewell,
L. J. Elliott, W. L. Thorp, A. J. Sheard, A. G. Duncan, H.
H. McKinnon, G. M. Proud, F. W. Smith, A. B. Rowan Legg,
H. A. Tubby, A. B. Janiieson, J. Cavers, W. R. Learmonth, F.
C. Billingsley, E. E. Irwin, Geo. Howson, A. A. Sutherland.
On motion of Mr. Stephen Haas, the President, Mr. John
(ialt, took the chair.
The Chairman requested Mr. C. A. Neel to act as Sec-
retary of the meeting, and Messrs. W. A. Windatt and P.
W. Drewry as Scrutineers. (Approved.)
The Secretary read the Notice convening the meeting,
which was in the following tej'ms: —
Head Office, Winnipeg.
NOTICE OF ANNUAL MEETING
Notice is hereby given that the Annual General Meeting
of the shareholders of the Union Bank of Canada for the
Election of Directors, and other General Business, will be
held at the Head Office of the Bank in the City of Winnipeg
on Monday, the lOth day of January, 1921. The chair will be
taken at 12 o'clock noon.
By Order of the Board,
H. B. SHAW, General Manager.
Winnipeg, November 6, 1920.
The. Chairman read the Annual Report of the Directors.
DIRECTORS' REPORT
The Directors have pleasure in presenting their report,
showing the result of the business of the Bank for the year
ended November 30th, 1920.
• During the year 15 branches and agencies were opened,
and 10 were closed, as follows: —
Offices Opened
Province of Ontario, 6 — Honeywood, Mansfield, Minesing,
Oshawa, St. Anne's, Toronto (Dawes and Danforth). •
Province of Manitoba, 2 — Benito, McConnell.
Province of Saskatchewan, 5 — Birch Hills, Carmel, Moss-
bank, Pinkham, Saskatoon (West Side).
Province of Alberta, 2 — Calgary (Stockyards), Edmonton
(Stockyards).
Offices Closed
Province of Manitoba, 5 — Graysville, Homewood, Mar-
garet, Roseisle, Winkler.
Province of Saskatchewan, 2 — Kyleville, Scott.
Province of Albei'ta, 3 — Alcomdale, Grassy Lake, Loy-
alist.
The number of branches and agencies in operation at the
close of business on November 30th was 393.
The number of staff employed at close of business on
November 30th was 2,303.
The usual inspection of all branches and agencies has
been made.
In accordance \\ith an announcement made by him at
the last Annual Meeting, Mr. R. T. Riley, Vice-President of
the Bank, has recently resigned from the Board, to devote
more time to his own affairs, and Mr. W. R. Allan has been
elected Vice-President to succeed him.
To fill the vacancies on the Boafd, Mrs. G. M. Black and
D. N. Finnie, of Winnipeg, have been elected Directors.
JOHN GALT, President.
PROFIT AND LOSS ACCOUNT
Balance at credit of account, 29th November,
1919 $ 198,222.87
Net profits for the year, after deducting expenses
of management, interest due depositors, re-
sei-\-ing for interest and exchange, and
making provjsion for bad and doubtful debts
and for rebate on bills under discount, have
amounted to 1,603,842.39
■$1,802,065.26
Which has been applied as follows: —
Dividend No. 132, 2^2 per cent, paid 1st March,
1920 ;$ 198,247.45
Dividend No. 133, 2% per cent, paid 1st June,
1920 199,988.80
Dividend No. 134, 2% per cent, paid 1st Sep-
tember, 1920 199,996.30
Dividend No. 135, 2% per cent, payable 1st De-
cember, 1920 _" 200,000.00
Bonus to Shareholders of 2 per cent., payable
1st December, 1920 160,000.00
Transferred to Rest Account 400,000.00
Written off Bank Premises 150,000.00
Contribution to Officers' Pension Fund 50,000.00
Contribution to Sick Benefit Fund 15,000.00
War Tax on Bank Note Circulation to 30th
November, 1920 79,536.24
Balance of Profits carried forward 149,296.47
$1,802,065.26
28
THE MONETARY TIMES
Volume 6P
General Statement of Liabilities and Assets
As on November 30th, 1920
ASSETS
(lolcl and Silver Coin $ 1,609,944.49
Dominion Government Notes 16,976,372.00
18,586,316.49
Deposit with the Ministei- of Finance for the
purposes of the Circulation Fund 365,000.00
Deposit in the Central Gold Reserves 5,000,000.00
Notes of other Banks 818,3.33.00
Cheques on other Banks 9,180,179.97
Balances due by other Banks in Canada 158,330.90
Balances due by Banks and Banking Correspon-
dents elsewhere than in Canada 4,551,868.87
Dominion and Provincial Government Securi-
ties not exceeding market value 8,790,636.28
Canadian Municipal Securities, and British,
Foreign and Colonial Public Securities
other than Canadian 11,900,843.26
Railway and other Bonds, Debentures and
Stocks Jiot exceeding market value 3,581,988.10
Call and Short (not exceeding 30 days) Loans
in Canada on Bonds, Debentures and Stocks 5,418,177.66
Call and Short (not exceeding 30 days) Loans
elsewhere than in Canada 3,119,133.31
Demand Loans in Canada secured by grain 10,732,755.47
$82,203,563.26
Loans to Governments and Municipalities 7,648,176.39
Other Current Loans and Discounts in Canada
(less rebate of interest) 69,849,784.93
Other Current Loans and Discounts elsewhere
than in Canada (less rebate of interest)— 4,496,251.20
Real Estate other than Bank Premises 229,079.49
Mortgages on Real Estate sold by the Bank— 135,499.43
Overdue Debts, estimated loss provided for 162,403.97
Bank Premises, at not more than cost, amounts
written off -- 985,969.61
Liabilities of customers under Letters of Credit,
as per contra 3,450,511.93
Other Assets not included in the foregoing 44,205.18
$169,205,445.39
LL^BILITIES
Capital Stock $ 8,000,000.00
Rest Account $ 6,000,000.00
Balance of Profit and Loss Ac-
count carried forward 149,296.47
$6,149,296,47
Unclaimed Dividends 17,838.68
Dividend No. 135, payable 1st
Dec, 1920 200,000.00
Bonus to Shareholders, payable
1st December, 1920 160,000.00
6,527,135.15
$14,527,135.15
Notes of the Bank in circulation $12,673,644.00
Deposits not bearing interest 49,714,051.67
Deposits bearing interest 85,610,464.14
Balances due to other Banks in
. Canada 627,615.47
Balances due to Banks and Bank-
ing correspondents elsewhere
than in Canada 2,601,010.53
151,226,785.81
Acceptances under Letters of Credit 3,450,511.93
Liabilities not included in the foregoing 1,012.50
Report of the Auditors to the Shareholders of the Union
Bank of Canada
In accordance with the provisions of snb-sections 19 and
20 of Section 56 of the Bank Act, 've report to the Share-
holders as follows :
We have audited the above Balance Slieet with the books
and vouchers at Head Office and with the certified returns
from the Branches.
We have obtained all the information and explanations
that we have required, and are of the opinion that the
transactions of the Bank whicli have come under our notice
liave been within the powers of the Bank.
In addition to our verification at the 30th November,
we have during the year checked the cash and verified
the seciu"ities representing the investments at the Bank
at its chief office and principal branches and found them
to be in agreement with the entries In the books of the
Bank relating thereto.
In our opinion the Balance Sheet is properly drawn up
so as to exhibit a true and correct view of the state
of affairs of the Bank, according to the best of our
information and the explanations given to us. and as
shown by the Books of the Bank.
T. HARRY WEBB. E. S. READ,
Auditors of the firm of
CEORGE A. TOUCHE & CO.
Winniptg. 20tli Ilecember. IMO.
$169,205,445.39
JOHN GALT, President.
H. B. SHAW, General Manager.
Review and Forecast
PRESIDENT'S ADDRESS
Gentlemen: It aifords me very great pleasure again to
meet you in Annual General Meeting.
The experience of the Bank in the financial year just
closed is set forth in the statement which is now before you.
Your Directors submit this statement with satisfaction. They
recognize that vigilance and sound judgment on the part of
the Executive throughout a difficult year materially contri-
buted to such a good result.
I shall leave elaboration of the report, but take occasion
to call attention to the material increase of our Rest Account
by the addition of $400,000.00 and to the fact of our position
being such that we felt justified in declaring a cash bonus of
two per cent, to our Shareholders. The transactions of the
year have been satisfactory, and we are in a sound and
healthy position.
All Resources Employed
Our profits have been unusually good, owing to the fact
that, with due regard to the factor of safety, all our resources
were fully employed. Our profits were not made at the ex-
pense of our borrowers, for the ' cun-ent rate of. interest
charged by banks in Canada has remained practically un-
changed since 1914, and we have had more violent fluctuations
and high rates from which other countries have suff'ered.
Substantial enhancement of profits was due to the general
banking facilities provided by the Bank to the community.
These services became productive largely accoi-ding to the
measure of service rendered to their customers by the num-
erous Branch Managers and Staff's. In viewing the year's
successful operations, due regard must be had to this valu-
able contribution.
The privilege of re-discounting with the Dominion Gov-
ernment has proved of the greatest service. It has enabled
Canadian banks to take care of the country's trade through-
out the period when high prices involved the employment of a
vastly greater amount of capital than formerly, and to fin-
ance all legitimate requirements. This privilege does not
appear to have been abused, and if continued would afford
all the necessary financial elasticity for period of expansion
and would be quite the equivalent of the Federal Reserve
Bank system now in existence in the United States. The
close scrutiny by the Department of Finance of the collat-
eral submitted provides an ample measure of safety.
Farming Industry
Our farming industry has on the whole been satisfac-
tory. The crop of 1920 in the Prairie Provinces passed
throu.gh many vicissitudes. An unfavorable spring resulted
January 21, 1921
THE :\IONETARY TIMES
29
in the late seeding of certain large areas, but good weather
advanced the growth in a satisfactory manner. Abundant
moisture was not general and, therefore, the yield in some
sections of the country was light, but, on the whole, the
crop was larger and of better quality than that of 1919.
In Manitoba the acreage under crop was approximately
6,350,000 acres, and the yield is the second largest in the his-
tory of the Province, and probably of greater value than any
former year, the returns being as follows: —
Bus. per acre
Wheat ^^ 15.1
Oats 33.6
Barley 22.3
Flax 6.8
Rye 15.7
In Saskatchewan the acreage amounted to approximately
17,000,000 acres, and the average yield per acre for 1920
shows a satisfactory advance on the previous year, and while
not the best in the history of the Province, a satisfactory
crop was harvested, yields being as follows: —
Bus. per acre
Wheat 11.2
Oats 27.7
Barley 20.2
Flax 4.8
Rye 13.8
In Alberta the acreage amounted to approximately
7,900,000 acres. The total production will equal, if not ex-
coed, past records, average being: —
Bus. per acre
A\Tieat . 21.50
Oats 38.50
Barlev 28.00
Flax 8.25
Rye 23.75
The 1920 crop is the best since the record year 1915, but
high cost of production combined with the decline in the
market value of farm pi-oducts, caused a heavy shrinkage in
the volume of money at one time anticipated.
An open fall enabled the preparation of a large seeding
area and as there was abundant moisture the spring crop
should go in under favorable conditions.
Live Stock Industry
Turning to the live stock industry, the year has witnessed
a marked shrinkage in values. In the case of cattle, sheep
and hogs, price records for 1920 show a decline of practically
ten cents per pound live weight between the high and low
points of the market. This was apparently due to a limited
demand from foreign countries and a pronounced decline in
the values of by-products.
Foremost in the minds of cattle producers is the thought
of the proposed duty against Canadian cattle entering the
United States and its possible effect. The American market
has provided such a healthy outlet for the bulk of our good
feeder cattle in past years that a barrier against this mar-
ket may injure our prices in Canada. Relief would be found
in the removal of the British embargo and it is to be hoped
that our government will not cease in their efforts in this
direction. If the Canadian cattle raiser is to be confined to
the Canadian market entirely, prices will be low.
Upon comparing the trade in 1919 and 1920 it is found
that a total of 1,022,134 animals were marketed at the five
central stock vards in western Canada during 1920 and were
valued at $51,045,176. During 1919 a total of 1,243,399 head
were marketed and were valued at $65,285,941. Comparison
of the two years' statistics show during 1920 a decrease in
receipts of 221,265 animals and a decline in value of $14,240,-
765, as compared with 1919.
It is hoped that conditions may soon improve and give
greater encouragement to this important Canadian industry.
Economic Conditions
Resumption of production overseas has conduced to re-
strict markets for Canadian products. Nevertheless, trade in
Canada in 1920 was on the whole active, and there were few
failures. But the strong tendency prevailing towards a fall-
ing of commodity values has become acute and a more diili-
cult financial situation confronts us. It is, however, a great
error to magnify this condition even though we are facing
a period of re-adjustment.
The economic conditions of the country for the recent
past and particularly in the year just closed, point to the
imperative need there is for continued access for Canada to
the world's markets. The demands made upon us from abroad
for our natural and manufactured products during the war
may never be wholly repeated. Nevertheless these demands
brought about a world-wide knowledge of our products which,
coupled with a high standard of business dealing, created a
good will abroad towards Canada. There should be untiring
persistence in assuring the permanency of the commercial
relations so established. This is undoubtedly a question in
which the Banks are materially interested. Just as the coun-
try's home and foreign trade progresses, so does the welfare
of the banking institution.
The dislocation in all exchanges is giving concern to
bankers the world over. The only solution lies in increased
production, thi:_"t and in the further increase of our exports.
Deflation Period
The inevitable period of deflation has undoubtedly ar-
rived. There is nothing to warrant us in taking a despondent
view of the present or encouraging dismal prognostications
of the future. With Canada's potential wealth so easily rea-
lizable there is nothing to prevent our surviving a temporary
depression, and emerging therefrom in circumstances more
fortunate and prosperous than will generally be found to
exist the world over. But there must be a determination
for harmony and unity among all classes, close application
to industry and production, intensive educational and scien-
tific development, a sound foreign trade policy and a fearless
entrance into all fields of competition.
We have reached an acute stage in which it will be most
unfortunate if our thoughts ai-e distracted by the conflict of
local interests. It is not sufficiently felt that Canada is one
unit where the greater welfare is concerned. It is submitted
that there should be adopted an all-Canadian policy whicli
will encourage development and production in all portions
of the Dominion.
Export Markets
It is clearly now the critical hour and the commercial
flag of Canada should be carried into every available market
abroad. A larger vision and determination of this kind is
necessary. We must either go forward or go back, and it
cannot be thought that we are to recede into the position of
a country that merely produces for home consumption when
we have demonstrated that we have the means and capacity
for wox'ld competition in almost any avenue of trade. Our
banking system has proven to have been at the same time
conservative and progressive. Its soundness requires no dem-
onstration, and, on the other hand, its elasticity and adapta-
bility to great emergencies have recently been conspicuous.
Advisory Committees.
The thanks of our Shareholders are due to our Advisory
Committees in London, New York, Montreal and Vancouver.
At all these points the closest attention has been given to the
Bank's affairs, with results that are eminently satisfactory
and are apparent in the Balance Sheet which is in your hands
to-day. We have indeed been fortunate in enjoying the ser-
vices in London of such men as Sir Austin Harris, Sir Keith
Price and Messrs. Blair and Small; in New- York of Messrs.
Stuyvesant Fish and Gilbert Thome; in Vancouver of Messrs.
Blake Wilson and (Jeorge Kidd, and in Montreal of Mr. J. B.
Waddell.
We are pleased to report a steady and satisfactory
gi-owth in the figures of the Park-Union Foreign Banking
Corporation with which we are closely associated. It prom-
ises to be a valuable adjunct to this Bank and of material
assistance to developing foreign trade.
It is pleasing to observe the attendance here to-day of so
many of your Directors from other Provinces. Except where
prevented by illness or disability, they have all come to-
gether on this occasion. This fact denotes the active interest
taken by all these gentlemen in the welfare of the Bank.
New Officers
As w-as intimated at our last Annual Meeting, our good
friend, Mr. R. T. Riley, bade us an official farewell during
the year. Mr. Riley found it necessary for personal reasons
to lighten somewhat the load of public responsibilities which
he has been carrying so long. The Bank is greatly indebted
to Mr. Riley for his wise counsel in many years past. He
has expressed his readiness to assist us on any occasion when
that might be desired. We feel, therefore, that Mr. Riley
is still in effect one of us. It would be impossible to think of
him otherivise. The Vice-Presidency vacated by Mr. Riley
was filled by the appointment thereto of Mr. W. R. Allan.
That we are fortunate in that appointment is apparent, and
needs no emphasis. Mr. Allan's wide experience, his good
judgment and business acumen eminently fit him for the
position.
THE MONETARY TIMES
Volume 66.
Owing to vacancies it became necessary to elect two new
Directors to the Board. Messrs. G. M. Black and D. N. Finnie
were appointed. These gentlemen are highly regarded both
here and in other parts of Canada. Mr. Black has been for
many years associated with financial interests and has proven
himself of sound judgment and business capacity. Mr. Finnic
brings to us valuable commercial experience gained in manu-
facturing and mercantile spheres. We are fortunate in their
acceptance of the trust.
Jn conclusion, 1 may say your Directors will exercise cour-
age and <liscretion in dealing with all problems that may
come before them during the year. They believe that the
sagacious policy followed by our Executive will enable us to
show good results for the ensuing year and that the Union
Bank will do its full share in maintaining confidence and in
rendering service to its customers and to the public.
Marked Progress During Year
GENERAL MANAGER'S ADDRESS
Mr. Chairman and Gentlemen:
It is a pleasure to present to you a satisfactory report of
the operations of the Baiik for the past year.
Owing to the high price of all cormnodities during that
period and to the very heavy public and private unfunded
irtdebtedness of Great Britain and Europe to this continent,
the demand for banking credit has been without precedent.
Constant watchfulness has, therefore, been necessary to pro-
tect the interests of our shareholders and depositors and, at
the same time, to provide adequate banking credit for our
customers.
The large increase in our loans due to this inflation has
naturally resulted in substantial profits, and I feel it is my
duty to point out that the period of deflation upon which we
have now entered does not promise such favorable results
for 1921. We shall welcome such deflation even though it is
at the expense of our earning smaller profits.
Assists Grain Movement
The peak of the Bank's loans at $118,000,000 was reached
in September, and since that time a steady reduction has
taken place until our commercial loans to-day are down to
approximately $70,000,000 and our loans to governments and
municipalities $7,648,000. Our loans for the purpose of assist-
ing in the grain movement amount to approximately $10,-
000,000, thus demonstrating that we are meeting all demands
made upon us for this important business.
Our policy of rendering the necessary assistance to
farmers and ranchers for production purposes during the sum-
mer was, we believe, a wise one, as it carried them over a
very trying period and prevented undue hardships. We feel
that we pursued the right course, though it taxed our re-
sources at the time.
The re-discounting privileges available with the Domin-
ion Government, under the War Finance Act of 1914, were
used extensively for this purpose, and the Minister of Fin-
ance is to be strongly endorsed for taking the position that
the legitimate needs of the country must be financed over a
difficult period, even though it meant further inflation of a
temporary character. Since the end of the year we have re-
paid all loans obtained vmder the above Act.
Bank's Liquid Position
I am pleased to draw your attention to our liquid posi-
tion at the present time. It is worthy of notice that the
ratio of loans to deposits of all the Canadian banks is now
considerably lower than it was in the year 1914, also that the
Bank's Reserves to Public Liabilities are higher than they
were in that year.
The profits for the year have enabled the payment of
a bonus of two per cent, to the shareholders, in" addition
to the regular annual dividend of 10 per cent., and we have
also been able to add $400,000 to the Rest Account, bringing
that fund up to an even six million dollars.
Comparing various items in the Balance Sheet with those
of last year, we find: —
Capital Account
The Paid-up Capital of the Bank now stands at $8,000,000.
Last year our shareholders numbered 3,925 and this year we
have 4,211.
Rest Account
An addition of $400,000 has been made to the Bank's Uesi
Account during the year, bringing it up to $6,000,000, or 7-5
per cent, of the Capital, as compared with 70.28 per cent,
last year.
Profit and Loss Account
Net profits of $1,603,842.39, after deducting the usual ex-
penses and provisions, show an increase over the previous
year of $671,585.59. These net earnings are 11.45 per cent,
on our Capital and Reserve as compared with 9.70 per cent,
last year. The earning power of our new Capital is refiucti'd
in these improved figures.
Deposits
The Total Dfeposits of the Bank aggregate $135,324,515.81,
which is approximately the same as last year.
Interest Bearing Deposits
These show an increase of $1,233,754.35, while non-inter-
est bearing deposits show a decrease of $1,405,752.87. The
latter was not unexpected as we had several large balances
of a temporary character.
Cash Reserves
Our holdings of Gold and Silver Coin and Dominion Notes
amount to $18,586,316.49, being 12.70% of our Liabilities to
the Public, as compared with $14,678,725.93 last year, with a
ratio of 9.11%.
Quick Assets
The percentage of Quick Assets to Total Liabilities to
the Public is 54.35% as compared with 47.23% last year.
Dominion and Provincial Government Securities
The figures this year are $8,790,636.23, compared with
$13,048,913.69 last year, a decrease of $4,258,277.46 or 32.63%.
This shrinkage is entirely due to the payment at maturity of
various issues of our holdings of Dominion of Canada Treas-
ury Bills throughout the past year.
Canadian Municipal and British and Foreign Securities
These total $11,900,843.26, compared with $15,818,016.79
last year, a decrease of $3,917,173.53 or 24.76%, which is very
largely due to the payment at maturity of certain issues of
Imperial Treasury Bills which we held.
Call and Short Loans in Canada
The figures this year are $5,418,177.66, compared with
$3,439,410.79, an increase of $1,978,766.87.
Call and Short Loans Elsewhere Than in Canada
The total this year is $3,119,133.31, as compared with
$7,956,854.74 in 1919, a decrease of $4,837,721.43 or 60.79%.
This item refers more particularly to our business in London
and New York and is of a fluctuating character.
Current Loans in Canada
Two new headings appear in the statement this year
which were included in 1919 under Current Loans in Canada.
These are "Demand Loans in Canada Secured by Grain,"
amounting to $10,732,755.47, and "Loans to Governments and
Municipalities," amounting to $7,648,176.39. If we include
these two headings with Current Loans and Discounts in
Canada, we find a total increase of $1,701,560.62 over last
year's figures, as our commercial loans stand at $69,849,-
784.93.
Current Loans Elsewhere Than in Canada
The figures are $4,494,251.20, as compared with $3,672,-
372.29 last year, an increase of $823,878.91 or 22.43%.
Liabilities of Customers Under Letters of Credit
These amount to $3,450,511.93, as compared with $7,-
186,940.91 in 1919. The decrease of approximately $4,000,000
is due to the world-wide contraction of business which has
manifested itself during the last few months.
Central Gold Reserves
The figures this year show^ a reduction of $500,000, as
compared with 1919, the amount now on deposit being
$5,000,000.
Bank Premises
The figures this year are $985,969.61, as compared with
$532,740.61 in 1919, an increase of $453,229.00. It has been
found necessary to erect our own premises at many of the
smaller points during the past year.
January 21, 1921
THE MONETARY TIMES
Total Assets
Total Assets of the Bank now amount to $169,205,445.39,
as compared with $174,989,057.47 last year, being a reduc-
tion of approximately $5,700,000. This small reduction can-
not be considered unsatisfactory in view of the existing con-
ditions during the last four months. The period of deflation
upon which we have entered is already having its efl'ect on
our figures and we cannot look forward to any large increase
during the coming year unless we are blessed with a very
bountiful harvest.
General Remarks
Due to the unsettled conditions which have obtained
throughout the whole world during the year under review,
business has not been normal, and has caused bankers much
anxiety.
At the beginning of the year we were on the crest of a
wave of prosperity which it was most difficult to breast. Un-
fortunately there are many people who do not, or will not.
recognize the fact that prosperity is an abnormal condition
of affairs, and that it means that trade conditions are above
the level; conversely, depression means that trade conditions
are below the level, but between the two is a normal line
which indicates steady and healthy progress. Prosperity, at
its height, can only travel a certain distance before there is
the inevitable reaction. Our Bank, in common with others,
did its best to promulgate this view in the early part of the
year and warned the public to prepare for a change in con-
ditions, but by many the warning was not heeded. Dealers
consequently found themselves with large stocks purchased
at high prices, and owing to diminished purchasing power on
the part of the public, their credits became frozen and were
not liquidated as they should have been. They must now
take the consequences and be prepared to accept losses, which
may largely offset their profits of the last few years.
There is, unfortunately, still a, hope in the minds of some
that the recession of prices is temporary and that, through
curtailed production, prices will again revive. We think this
a mistaken idea and shall do oui' best to prevent the holding
of surplus stocks in the hope of higher prices.
It is reasonable to expect that a return to normal con-
ditions in this splendid country of ours can be accomplished
without undue commercial mortality if manufacturers, whole-
salers and retailers will only realize the necessity of market-
ing their goods in a steady and orderly fashion.
The British Plan
The country's large national debt and the steadily in-
creasing unfavorable trade balances point to the necessity for
co-ordinated action on the part of our manufacturers with a
view to the development of business in foreign markets. The
plan adopted by British manufacturers is well worthy of the
attention of Canadian manufacturers. It may be stated
briefly that an organization has been formed representing
upwards of 17,000 British manufacturing concems covering
all classes of British industry, whose object is by mutual
effort and harmonious co-operation to promote British trade
with the world to the utmost possible degree. The organiza-
tion is kno\\-n as the "Federation of British Industries," and
I venture a recommendation to Canadian manufactuters to
acquaint themselves more closely with its aims and methods.
It is now generally admitted that the total wheat crop of
the three Prairie Provinces is considerably below the estimate
of 263.000,000 bushels made by the Federal Government.
There were large areas in the three Prairie Provinces where
the grain ripened very quickly, with the result that the yield
was appreciably lessened. It is, of course, impossible, even at
this date, to give an accurate estimate of the total yield, but
the best opinion does not grant a maximum of more than
220,000,000 bushels.
Crop Movements
From September 1st, the beginning of the crop year, to
December 31st, approximately 150,000,000 bushels were mar-
keted, of which 123,000.000 bushels were shipped to Fort Wil-
liam, Port Arthur and Canadian mills, and 5,000,000 direct
to the United States, leaving about 22,000,000 bushels in coun-
try elevators. Approximately 89,000,000 bushels have been
shipped from Fort William and Port Arthur, 70% of which
was destined for United States ports. It is estimated that
30,000,000 bushels are being held unsold in country and term-
inal elevators and in transit to Fort William and Port Arthur,
which, together with 35,000,000 bushels held by the farmers
over and above their seed requirements of 35,000,000 bushels,
leaves approximately only 65,000,000 bushels still to be sold,
from the proceeds of which will have to be deducted advances
already made against the unsold grain in storage. On the
basis of No. 1 Northern in store Fort William and Port
Arthur, the average prices obtained are as follows: —
August $2.74
September 2.73 '2
October 2.32
November 2.05
December 1.97^/^
Our wheat this year has proved to be of a very high
quality, 87%% of all cars inspected being of contract grade.
This quality has created a demand for our wheat both in
Europe and" the United States for the purpose of mixing it
with softer wheats and those of a lower percentage of gluten.
These purchases have been almost entirely for immediate de-
livery, thereby causing a substantial cash premium over de-
ferred positions. This has resulted in the withholding of
wheat by the producers until it was available for spot or on
track delivery, thus the handling of our crop to date ha%
been on a much more rapid turn-over basis than in ordinary
years, and the banks have had to supply less money for thi?
purpose than usual.
Eastern Crops
The total value of field crops in the Eastern Provinces
for 1914 amounted to $349,000,000, or 54% of the total, and
that of the West to $289,000,000, or 46% of the total. In
1920 the total value of the Eastern crop was $858,000,000.
or 52%. and in the West $778,000,000, or 48%. The increased
pi-oduction of 1920 as compared vdth 1914 amounted to
$509,000,000, or 145%, in the East, and $488,000,000, or 168%,
in the West.
It is pleasing to note the provision that has been made
for scientific development of our agricultural interests as
evidenced by our educational institutions established for that
purpose and the voluntary agencies of our agriculturists
formed to disseminate special knowledge for the encourage-
ment of their industry. . Our practical farmers have an uner-
ring knowledge of theii- own needs and interests and have
shown high intelligence and energy in pi-omoting their per-
manent welfare. By their action they have made it clear
that Canada is a pi'osperolus land for the earnest and in-
telligent 'farmer and stock-raiser. In the highly .important
phase of community life and in that of rural education ad-
vances have been made which have, in many well settled
areas, removed in large part the early pioneering disadvan-
tages and hardships.
■Splendid Future
This is no time to harbor unfounded fears which paralyze
industry, but rather to go forward in the confidence that we
have a land of plenty. It is a wonderful heritage and demands
our best endeavors. If these are given w=ith prudence, hard
work and economy, the future should yield up a full measure
of prosperity. I "have abundant faith in the future of our
country, its" institutions and the ability of our people to
build tip a nation of high ideals and sound citizenship.
Staff
We have now completed the readjustment of our Staff,
thoroughly disorganized during the war, and have absorbed
into the p"ermanont service all those employed in a temporary
capacity who wished to remain and whose services were found
to be s"atisfactory. Wo still find it difficult to obtain a suffi-
cient number of desirable young men as juniors.
Our Staff now totals 2,313, of which 1,606 are males and
707 females. I cannot speak too highly of the loyalty and
devotion of these officers and of the splendid work they are
performing.
In conclusion, I should like to give you my assurance that
no effort will be spared and no labor considered too hea\T to
uphold the important position which this Bank has attamed
in the financial life of our Dominion.
Canada Should Wake Up !
MR. KENASTONS ADDRESS
Mr. President: If I may be permitted to diverge from the
subject of vote of thanks to the members of the different
Advisory Committees, I would like to say a word respectmg
the reference made bv the General Manager to the Agncul-
82
THE MONETARY TIMES
Volume 66.
tural Schools, which are furnishing scientific instruction to
the farmers of the country, and the ^reat benefits being de-
rived therefrom.
There is no question but what scientific farming is now,
and will later on bring wonderfully satisfactory results to all
of Canada, and it is a matter which should encoui-age the
most loyal support of all good citizens of the Dominion.
Protective Tariffs
1 wish to go on record as being in full accord with this
great work, but there is still another, very important sub-
ject, to which I would like to call your attention to-day, and
that is the subject of rendering scientific aid to the manu-
facturing industries of Canada. You are buying fi-om the
United States approximately one billion dollars' worth per
annum, or at least that is the approximate figure which your
imports from that country will reach during the current year
past.
To-day there is an exceedingly strong element in the
United States which is clamoring for a protective tariff
against the import of wheat, cattle and other farm products
from Canada. I hope that the bills introduced asking for
those duties will not be enacted into laws, but the chance is
that they will be.
Balance of Trade
Now that your very heavy imports from the United
States and your handicap in exporting your chief products
there to assist in pajing for such imports will leave you with
an extraordinary heavy balance of trade against you, this
Ijalance of trade can only be covered by making loans payable
in United States funds in New York.
For the present time the people of the United States are
quite willing to buy Canadian bonds with principal and inter-
est payable in their o«ti funds, but there is bound to come a
day of reckoning, for you when these debts must be paid, and
it seems to me most wise at this particular time that the
best thought of Canadian statesmanship should devote itself
to de\ising such means as Avill enable Canada, in so far as is
possible, to manufacture within her own borders the things
that she needs, as well as as large an export business as can
be reasonably handled.
Canada's Rich Resources
Canada has wondei-fully rich natural resources, includ-
ing timber, minerals and oil. Naturally there will be discov-
ered from time to time, valuable means and resources un-
known at the present time. The assembly and practical use
of these resources and the best method of utilizing' their value
in manufactured articles is a subject which should be most
carefully studied.
The individual manufacturer can neither afford the time
or the expense to pursue this study as it should be done;
therefore, it seems to me wise that the Government, in the
interest of the whole people, might well devote a reasonable
sum from Income and Excess Profits taxes to the establish-
ment of a department to be organized and operated under
Government control for the purpose of analytical research
of the natural resources of Canada and the best application
of the same for the use of manufacturers and general com-
merce.
Germany and Canada
A concrete example of resultant benefits of governmental
aid, such as is suggested, may be had by referring to pre-war
Germany and the eminence to which the Germans had at-
tained in research work and practical science as applied to
the manufacture and genera! uses of their discoveries. Ger-
many, as compared with Canada, was, and is, very poor in
natural resources, and it was only thi-ough the strict applica-
tion of her intelligent research that she was able to attain
her then commercial position in the world.
Canada, Wake Up!
Another reason why it seems to me that Canada should
wake up at the present juncture, is the fact that the most
progressive countries of the world are emerging from the
state of confusion resulting from the Great War just as
rapidly as they can, and, in common vei'nacular, "it is up
to us to get busy," unless we wish to be left behind in the
race.
General Proceedings
of the Meeting
Mr. John Gait moved, seconded by Mr. Stephen Haas,
that the report be adopted and that it be printed for distri-
bution.
The Chairman informed the meeting that the retiring
Auditors were eligible for re-election, and that no other nomi-
nations had been received. It was then moved by Mr. James
Fisher, K.C., and seconded by Mr. W. J. Christie, that Messrs.
T. Harry Webb, C.A., and E. S. Read, C.A., of the fii-m of
Messrs. George A. Touche & Co., be reappointed as Auditors
of the Bank. Carried.
It was then moved by Mr. James Fisher, K.C., and
seconded by Mr. W. J. Christie, that a sum not exceeding
$10,000 be set apart by the Directors for the remuneration
of the Auditors, to be apportioned by them as may be deemed
advisable. Carried.
The Chairman stated that it was required to provide
additional remuneration for the Directors to the extent of
$30,000, and asked the Secretary to read the proposed amend-
ing by-law.
The by-law having been read, it was moved by Mr. C. P.
Wilson, K.C., and seconded by Mr. J. H. Tumbull, that the
by-law be now passed and enacted by the Shareholders accord-
ingly. Carried.
It was moved by Mr. E. L. Drewry and seconded by Mr.
R. O. McCulloch, that the meeting proceed to the election of
twenty Directors for the ensuing year and that the Chairman
do cast one ballot for Messrs. W. R. Allan, G. H. Balfour, G.
M. Black, Hume Blake, K.C., M. Bull, Sir John W. Carson,
C.B.; B. B. Cronyn, E. L. DrewTy, S. E. Elkin, M.P.; D. N.
Finnie, John Gait, S. Haas, A. Hitchcock, J. S. Hough, K.C.;
W. H. Malkin, R. O. McCulloch, F. E. Kenaston, Sir Wm.
Price, Wm. Shaw and G. H. Thomson.
The motion was carried unanimously. The ballot being
cast, the Scrutineers reported these gentlenlen elected as
Directors of the Bank for the year ending November 30, 1921.
It was moved by Mr. J. B. Persse and seconded by Mr. J.
Woodman, that the thanks of the Shareholders be tendered
to the Honorary President, President, the Vice-Presidents,
and the Directors of the Bank, for their valued services during
the year. Carried.
Mr. Stephen Haas and Mi-. W. H. Malkin responded.
It was moved by Mr. F. E. Kenaston and seconded by
Mr. W. R. Allan, that thanks be tendered the gentlemen on
the Bank's Advisory Committees.
Mr. George Kidd and Mr. J. B. Waddell responded.
It was -moved by Mr. Isaac Campbell, K.C., and seconded
by Mr. G. A. Merrick, that the thanks of the Shareholders be
hereby tendered the General Manager, Assistant General
Managers, Superintendents, Inspectors, Managers and other
officers of the Bank for their efficient service during the
year. Can-ied.
Mr. George Wilson and Ml-. W. J. Dawson responded
briefly on behalf of the staff.
The President then called upon Mr. R. T. Riley to ad-
dress the meeting. Mr. Riley stated that this was an unex-
pected pleasure. In the course of his remarks Mr. Riley
drew attention to the fact that as a young man he remem-
bered the central western States, such as Iowa and Nebraska,
during the process of expanding population, and stated it as
his belief that the Prairie Provinces to-day stood in the same
relation to the future; and that whereas the total assets of
the Union Bank of Canada may now be .$170,000,000, yet he
believed that within the lifetime of most of those present they
would see these assets increased to $570,000,000.
Mr. H. A. Mullins, rising to order, endorsed the Presi-
dent's remarks with regard to the embargo on cattle, outlin-
ing the present position of the Canadian live stock market at
some length.
The meeting then adjourned.
At a subsequent meeting of the newly elected Directors
the following officers were elected: Sir Wm. Price, Honorary
President; Mr. John Gait, President; Mr. G. H. Thomson, Mr.
Stephen Haas, and Mr. W. R. Allan, Vice-Presidents.
364
January 21, 1921
WHERE
THE MONETARY TIMES
OUR BANK BRANCHES ARE SITUATED
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53
1
41
6
7
14
77
107
21
4
32
116
24
47
26
10
1
2
77
....1 2
13
614
164
Sterling
68
4
9
18
70
156
4
3
1
1 2
383
23
Total
1515 853
162
109
38
236
334
586
413
3
48
15 9
4
2
97
2 13
1
4440
4202
t This Branch is at St. I'ierre. Miyuelon.
• Decline is explained in that last year Sub-branches were included. Sub-branches of the Provinciale Bank now total 250. In order to make a fair comparison
with List year, this should be added to the total. brinftinR that liRurc to 4,690
FOUR HUNDRED NEW BRANCHES IN YEAR
Branch expansion in Canada during the past year, while
only half that of 1919, was on a. fairly generous scale,
as some 400 new offices were opened. Canadian banks now
have, roughly, 4,700 offices, including sub-branches. Of these,
4,500 are in Canada, and, assuming a population of 8,000,000,
this works out at one banking office for each 1,800 inhabi-
tants, a ratio not equalled in any other country.
The table given herewith shows how the branches are
distributed as to provinces, Ontario having as many as all
the western provinces together. It was in the eastern sections
that the bulk of the new offices were opened during the year,
Ontario and Quebec accounting for 335, Nova Scotia 15, New
Brunswick and Prince Edward Island three each, British
Columbia 25, Manitoba 40 and Saskatchewan and Alberta
14 each. The reason is very probably that it is in the eastern
sections that the bulk of the deposits are obtained. In the
west, as in all new sections, the customers are borrowers
rather than depositors, and, as the resources of the banks
have been fully employed in the last few years, new de-
positors are more sought after than new channels for
investment.
In the search for opportunities to establish a branch
there have been cases where a competitor's toes have been
stepped on, and this has, no doubt, accounted for much of
the criticism by bankers of each other's policy in this respect.
This criticism has often been heard in the past, but invari-
ably the business obtained has in time been sufficient to
justify the banks who made the attempt, and there is no
reason to doubt that this will be the case again.
The branch system has been one of the chief factors in
the upbuilding of the country, as by it the banks have been
able to furnish the necessary accommodation to all classes
of business in Canada, whether farmers, merchants or manu-
facturers, at rates which compare most favorably with those
current elsewhere.
It is reported from Montreal that there is small likeli-
hood of much increase in branches in the near future, owing
to the difficulty of procuring equipment, particularly safes.
During the war there was no demand for these, but since
then the makers have not been able to fill orders. The staff
problem also is none too easy, even with the large number
of women and girls now employed, as these cannot be sent
around the country at short notice, as men expect to be and
are, as the service requii'es.
IMPERIAL GUARANTEE AND ACCIDENT
Sixteenth Annual Report Reveals Company in Fine Position —
Assets, Premium Income, Interest Earnings,
all Show Increase
The sixteenth annual report of the Imperial Guarantee
and Accident Insurance Company as presented to the share-
holders January 14th indicates a real strengthening of its
financial position.
The company now has on its books 25,648 policies for
insurance of $56,684,000, as against 21,686 policies and $42,-
091,819 in force at the end of 1919.
Gratifying, indeed, also is the fact that the total assets
of the company now stand at $540,945.95, as against $512,-
016.81 a year ago, of which the very substantial sum of
$365,227.46, on a book value basis, consists of high-grade
securities, such as government bonds and debentures, all bear-
ing good interest returns.
The premiums on new and renewed business amounted
to $557,771.86, a very satisfactory increase over the previous
year of $107,201.17. After providing $221,224.94 for un-
earned premium reserve, reserve for outstanding claims,
and providing for other liabilities, the surplus to policy-
holders stands at $306,721.01, which together with the un-
called subscribed capital, amounting to $800,000.00, provides
a security for all contracts of $1,106,721.01.
The following lines of insurance are now written by the
company: Personal Accident, Sickness, Elevator, Fidelity
Guarantee, Plate Glass and Automobile (including insurance
of automobiles against fire).
Looking back over the year just closed the directors,
shareholders and policyholders have good cause for gratifica-
tion, as the report reflects most careful and efficient manage-
ment in the administration of the company's affairs. (Adv.).
34
THE MUTsBTARY TIMES
Volume 66.
TRANSATLANTIC TRADE RELATIONS
Exchange Rates Have Been Subjected to Influences of Com-
modity Prices — The Situation in Wheat
By S. L. Jones
Majiager, Dominion Bank, Lo)tdon, Eng.
STERLING exchange followed its usual course during the
past year, showing early strength and falling to the low
point in the autumn when the American and Canadian crops
were being exported. It would not fall so low were not Great
Britain the financial clearing house for the continent, but, as
it is, every recession in the value of the franc, the mark, or the
lire, is reflected in a corresponding weakening in the ex-
change quotation for the pound sterling. When these cur-
rencies, including sterling, will return to their pre-war stan-
dard of value as compared with the dollar, and stay there,
or if they ever will do so, are questions which no one can
answer; but while the United States retains so large a pro-
portion of the world's gold, does not purchase abroad in any
volume and makes no investments to speak of in loans to
other countries, so long must this lopsided condition of
aff'airs remain.
Seasonal Fluctuations
Lacking the stabilizing influence of gold shipments, the
exchanges must be subject to serious fluctuations, respond-
ing seasonally to the flow of the necessities of life from the
producing to the non-producing countries. During the rest
of the year the tendency is towards recovery in value, as
these non-producing countries are centres of travel, control-
lers of shipping and have many other sources of revenue,
but the fact remains that their currencies must show con-
siderable depreciation at certain periods of the year if they
cannot produce gold to neutralize the effect of their pur-
chases. It is true that European importers can, in the for-
eign exchange markets of London and New York and other
great centres, buy transfers in the currencies of other trading
countries months before they are required to pay for commo-
dities, but this process only tends to hasten or defer the re-
sult on the exchanges of such purchases.
Fall in Price of Wheat
For some years, due to causes of the war, Great Britain
has been largely dependent on the United States and Can-
ada for supplies of wheat, but now Australia and India are
in the market again with good crops, and, the exchanges
having gone against both, Great Britain has been able to
buy advantageously. The effect has been to lower the price
of our No. 1 Northern under governmental control, which
still exists. There is only one buyer of wheat in Great
Britain, the Royal Commission on Wheat Supplies, who re-
ceive at their London headquarters each morning offers from
local representatives of the exporters abroad. These are ac-
cepted or refused according to requirements. The country
is so compact, and the amount on hand and required for
consumption so well known, that it is possible to estimate
accurately in advance how long present supplies will carry
the population along. Thus it became known to dealers early
in the autumn that all domestic wheat storage accommoda-
tion was taken up and the independence of the commission
is thus understandable. Sooner or later, however, they must
take our wheat, but the effect of the delay has been to leave
us with our crop at the head of the lakes, lower the price and
throw the burden of financing on the banks for the winter.
Money and Credit
International trading in these days of receding values is
suffering a set-back which must exist and intensify until de-
mand shows signs of catching up to the supply of commo-
dities, but the people of the world must be fed and clothed
and housed. Larger quantities of foodstuffs and general
goods will be carried by wholesalers and retailers as confi-
dence returns and capital becomes available for them to in-
crease their stocks. Then the pendulum will swing the other
way. Credit is being rationed now, whereas, during the years
of war, goods were rationed and credit manufactured far too
freely. The result was that money became cheap and goods
dear. The process of rectification causes depression, and that
is what we have been passing through — a period of strain
which must be endured calmly if we are to return safely and
quickly to normal times again. Who can doubt the truth of
the remark of the president of the Canadian Bankers' Asso-
ciaition, Mr. Clarence A. Bogert, who said that Canada will
recover sooner than almost any other country.
TRAVELLERS' MUTUAL BENEFIT RAISES RATES
Funds for Old and New Members Separated — 1920 Revenue
Decreased But Surplus is Shown
READJUSTMENT of rates by increases of from 25 to
100 per cent, and re-classification of membership were
agreed to at the annual meeting of the Dominion Commercial
Travellers' Mutual Benefit Society held in Montreal on
January 15. The proposal, submitted by J. G. Watson, pro-
vides for the division of the membership into two separate
classes, to be known as Classes A and B. The accounting
and administration of assessments collected in each class is
to be kept entirely separate and distinct, and the amount of
the present reserve is to be credited to the A class. The new
system becomes effective on March 1st.
Old and New Members Separated
Class A will comprise the whole of tlie present mem-
bership with the exception of those members under fifty
years of age who may transfer into the new Class B, upon
written application and agreement to pay the rate of assess-
ment applicable at their respective attained ages. The rates
of assessment payable by the Class A members will be in-
creased from the present figures to amounts ranging from
25 per cent, to 100 per cent, additional in accordance with
the length of their respective membership.
The membership of Class B will comprise all new mem-
bers admitted on and after March 1st, as well as the younger
members who may transfer from Class A, and as the scale
of assessments adopted for this class conforms with the re-
quirements of the law, it is hoped that a great number of
members of the Dominion Commercial Travellers' Associa-
tion who were more or less reticent about joining under
the old system will come forward and join the "Mutual"
now that an adequate scale of assessments has been adopted.
The necessity for special assessments is done away with
under the new plan, and only twelve assessments per annum
will be levied henceforth.
The by-laws were also amended to provide for the ac-
ceptance into membership of any insurable person under
fifty years of age, and it is hoped by this means to greatly
augment the present membership during the ensuing years.
Results for 1920
The annual report showed that the society lost 26 of
its members through death, and all claims had been promptly
paid with the exception of three, the forms for which had
not been fully completed. The average age of the deceased
members was 62 years and the length of their membership
averaged 26% years. Since its inception the society had
paid 531 death claims, amounting to $524,205. The revenue
for the past year was considerably lower than the year
previous, but in spite of this a surplus of revenue over ex-
penditure was shown in the assessment account. The fol-
lowing are the chief officers for 1921: — -President, S. S.
Woodward; vice-president, Wm. Blanchard; treasurer, F. C.
Cote.
January 21^1921
THE MONETARY TIMES
THE NATIONAL LIFE
Assurance Company of Canada
Head Office : National Life Chambers, Toronto
First Vice-President
GEORGE W. BEARDMORE
President and Managing Director
ALBERT J. RALSTON
Second Vice-President
W. R. HOBBS
WILLIAM C. WAIT
Assistant Secretary
't General Manager and Sec'y
F. SPARLING
TWENTY'SECOND ANNUAL REPORT
A RECORD OF SOUND PROGRESS
LIABILITIES
Reserves, Oin. (5) 3',2'/( basis $4,183.040 00
Extra Reserves for 3''r Guaranteed Poli-
cies at end of Twenty Years 115,413 00
Death Claims Outstanding, awaiting claim
papers 39,824 00
Matured Endowments and Dividends set
aside for policyholders 42,944 85
Commissions due Agents and Medical
Fees 1,275 44
Interest and Premiums Paid in Advance 15,073 43
Taxes Payable in 1921 10,526 35
Instalments Victory Loan 305,000 00
Surplus for additional protection of
policyholders , 466.080 92
(Including Paid-Up Capita-1 $250,000.00)
*Note — The Boitds and Debentures are taken into the
statement nf ■•!:',', t. .110.02 below the par value.
$5,179,182 99
ASSETS
Par Value. Book Value.
Dominion, Provincial and
Municipal Bonds *$4,375,806 07 $3,934,496 05
Bank Stocks (Imperial, Royal, Do-
minion, Bank of Toronto and Bank
of Montreal) 199,235 00
Toronto Consumers' Gas Stock 16,403 33
Head Office Building (1918 Va-luation
$301,653.00) 250,000 00
Policy Loans (Secured by Legal Reserves) 476,430 09
Treasury Vault Equipment 10,000 00
Cash at Banks and at Head Office 53.409 75
Accrued Interest on
Bonds and Debentures . . $55,076 23
Bank Stocks 1,246 00
Loans, etc 4,787 84
61,110 07
Outstanding and Deferred Premiums (less
full first year and renewal commis-
sions) 178,098 70
^.179,182 99
Net
Interest
Earnings
on
Invest-
ments
5.90%
The substantial increases noted in the following Statenient give a clear idea of the
genuine progress being made by The National Life.
COMPARATIVE STATEMENT IN THREE YEAR PERIODS
Assets Business in Force
1902 $ 199.070.71 S 3,425,897.00
1905 567,396.75 5,125.437.00
1908 1,085,227.67 8,625,509.00
1911 1,740.701.99 14.453.866.00
1914 2,886,717.60 21,908,408.00
1917 3.755,420.53 22.686,816.00
1920 5.179.182.99 30,806,390.00
Below are the results for 1920 as shown by the Financial Statement
Increase
Total Assets $5,179.182.99 S
Total Assurances in Force 30.806.390.00...
Total Income 1,280.558.69 . . .
Applications for new Assurances Received .... 8,362.802.00...
New Assurances Issued and Revived 7,501,852.00. . .
Reserves for Protection of Policyholders 4,298.456.00 . . .
Surplus for further Protection of Policyholders 466.080.92...
332,440.02
4,000.207.00
181,055.77
2,597.852.00
2,261,500.00
324,079.00
45,992.49
Permanent as the Pyramids "
Mortality
Experi-
ence for
the Year
57.5%
of the
Expected
370
THE MONETARY TIMES
Volume 66.
MODEiRATE POLICY IN ERECTION OF BUILDINGS
One Large Building Completed, Eighteen in Course of
Erection, and Twenty-seven Planned
WHILE the number of new branches opened in 1919
reached a record figure, and the number in 1920 was
exceptionally large, the Canadian banks have gone slow
in erecting new buildings at the high costs of construction
which have prevailed. Some work of this kind has been gone
ahead with, however, as the lists below show.
Building Completed
Banks.
Commerce Portage Ave., Winnipeg, Man..
Buildings in Course of Erection
Montreal Gait, Ont.
Main and Arnslie, Montreal, Que.
Union Portage and Arlington, Winnipeg, Man.
Merchants Portage and Goulding, Winnipeg, Man.
Eegina, Sask.
Royal Marpole, B.C.
Bridgewater, N.S.
Erskine, Alta.
Standard St. John, N.B.
Coaldale, Alta.
Nova Scotia Annapolis, N.S.
Queen and McCaul Sts., Toronto.
Commerce Moncton, N.B.
Williams Lake, B.C.
Charlotte St., Sydney, N.S.
Hamilton Tusford, Sask.
Imperial Windsor, Ont.
Queen and Carlaw, Toronto, Ont.
Intended Erections
Commerce Powell River, B.C.
New Glasgow, N.S.
Merchants Walter St., Gait, Ont.
Granville and Robson, Vancouver, B.C.
St. James St., Montreal, Que.
Montreal Granby, Que.
Hollis St., Halifax, N.S.
Prince and Forester Sts., Truro, N.S.
Woodstock, Ont.
Banff, Alta.
Cherry St., Toronto, Ont.
Royal Drummondville, Que.
Spring Garden Rd. and Queen St., Halifax,
N.S.
Gage and Main and Boston and Lottridge,
Hamilton, Ont.
Bernard St., Montreal, Que.
Taber, Alta.
Morinville, Alta.
Imperial Kingston Rd. and Balsam Ave., Toronto, Ont.
Amherstburg, Ont.
Union Lutes and Main, Moncton, N.B.
Hastings and Seymour, Vancouver, B.C.
Molsons Bedford, Que.
Bernard St., Montreal, Que.
Hochelaga Ontario St. E., Montreal, Que.
Nova Scotia New Toronto, Ont.
Pitt and Charlotte Sts., Sydney, N.S.
Toronto St. Clair Ave. and Christie St., Toronto, Ont.
REVIEW OF BOND MARKET FOR 1921
Exceptionally Large Propiortion Sold in United States — Signs
Point to Stiffer Prices, says J. W. Mitchell
<' Tj^ROM the standpoint of finance," says J. W. Mitchell,
S. vice-president of the Dominion Securities Corpora-
tion in a Review of the Bond Market for 1920, "the year
1920 is of special interest because during the second quarter
Canada witnessed the arrival of 'deflation,' and in due course
all its disturbing consequences in the liquidation of com-
modities, securities, credit and labor. Ever since the termina-
tion of the war our bankers and financial leaders had pointed
out the necessity of preparing for the inevitable advent of
this period of readjustment, but the surprising continuance
of increased business and high prices throughout 1919 and
the early part of 1920 doubtless led many to regard these
warnings as either exaggerated or ill-founded. Certain it
is that the fall in general values, coinciding with the financ-
ing of a bountiful crop and the tightest money market
Canada has ever known, resulted in severe losses in many
lines of industry and kept the bond market during the last
six months of the year unsettled and apprehensive, v\rith
steadily declining prices."
Sales in United States
Bond issues of the year he estimates at $318,832,081, of
which 67.18 per cent, was sold in the United States, which is
much higher than in the three preceding years. "The low
1917-1918-1919 percentages," he says, "are explained by the
entry of the United States into the war, and the enoimious
amount of financing they undertook for the Allies before and
after the armistice Very favorable exchange conditions,
varying from the low of 7% per cent, to the high IQVi per
cent, on December 21st, 1920, greatly stimulated the pur-
chase of our secui*ities by the American market, but when we
remember the tremendous competition there was from
European borrowers like France, Belgium, Norway, Sweden,
Denmark and Switzerland, and the exceedingly attractive
terms they offered, the reception accorded to Canadian bonds
— there was no direct Dominion issue — must be regarded as
striking evidence of the confidence of that great market in
our financial stability. Apart from their huge direct invest-
ments in great industrial undertakings in our country
Americans increasingly recognize the necessity of backing up
their enormous export trade with Canada (their second best
customers) by heavy purchases of our securities, and thus
easing to some extent our difficult problem of payment. How-
ever that may be, we are extremely fortunate, in view of our
large financial requirements, in now being able to borrow
over two hundred million dollars per annum from the United
States almost as readily if not so cheaply as we did in the
pre-war days from Great Britain."
Regarding prospects for 1921 Mr. Mitchell says: "En-
forced liquidation of commodities and the restriction of credit
to commercial and industrial enterprises, however, have al-
ways inevitably meant cheaper money and the entry of the
released funds into the bond market. The increased pur-
chasing power of the dollar is already in evidence, and that
increased power will be followed by higher prices for bonds.
Undoubtedly erratic conditions will prevail in the early part
of the year, but on the whole Canada should witness an
active bond market in 1921 , with gradually advancing quota-
tions. All long-term bonds already feel the first effects of
the changing conditions. As taxation in this country must
continue heavy for years to come our long tax-free issues
should be increasingly in strong demand."
The Landry Pulpwood Co., Ltd., of Quebec, is a new
company formed to deal in lumber and* pulpwood. The
authorized capital is $100,000, of which $50,000 has been
subscribed and paid-up, under a federal charter. A. Landry
and J. A. Landry, merchants, of Lac-au-Saumon, Que., are
the principals in the company, which is taking over their
business. 18,000 cords of pulpwood have already been bought
and contracted with American paper mills.
A preliminary statement regarding the Huron and Erie
Mortgage Corporation's year was presented to the annual
convention of Ontario branch managers and heads of depart-
ments, held at London, last week. This showed that in-
creases during 1920 in the savings and Canadian debenture
departments were the largest in the corporation's history.
January 21, 1921
THE MONETARY TIMES
37
Economic Developments in Western Canada
Drop in Wheal Was Setback, But Solution is Being Sought in Economical
Production and Marketing — Natural Resources Are Plentiful, and Immigration
is to Be Encouraged — Financing Becomes Easier as Wealth Accumulates
By J. COURTLAND ELLIOTT
University of Saskatchewan, Saskatoon
TW^ANY developments in western Canada of economic interest
■'■" and significance to Canadians anxious to see the fullest
expansion of the prairie provinces have occurred during the
past tweh'e months, and with the coming of a new year and a
new decade problems of unprecedented importance are assert-
ing themselves for solution.
Outstanding among the economic occurrences, of course,
has been the rapid decline in the prices paid for grain products,
especially for wheat, which stands in the forefront of western
production. Briefly the cause is to be found in the fact that
bountiful harvests the world over have produced a world sur-
plus variously estimated at from 150,000,000 to .■500,000,000
bushels. The important buying market is Europe and by in-
creasing production and reducing consumption through the
imperative necessity of counteracting the detrimental effect
of the adverse exchanges, that continent to-day is demanding
a relatively smaller supply of wheat. Consequently under the
system of open trading in cash and future sales of wheat the
speculators have naturally been discounting the future proba-
bilities of the market and the price has fallen through the
decreased and inelastic d>^mand to a point which in many cases
will not cover the cost of production. It has been quite a nat-
ural process in line with the disastrous declines in all the com-
modity mai'kets and represents an aspect of the inescapable
psychological attitude of refraining from buying which is be-
ing encountered throughout the business world.
Wheat's Decline Hampers Business
The decline in the prices oi the staple commodities of
western producers has resulted in a general slowing up of bus-
iness and, as in other parts of the Dominion, bargain sales are
being advertised galore. Although it has been denied in some
quarters that the wheat price has had any effect upon busi-
ness, it seems reasonably certain that the decline has had a
very important influence, first, by preventing the liquidation
of due obligations and thus obstructing the free flow of credit,
and secondly, by reducing not only present but prospective pur-
chases. Indeed, the result of the first influence has been even
more important than the second, and the failure on the part
of farmers to meet their obligations, either through inability
or a seemingly vain desire to wait for higher prices, will notf
be properly appreciated unless the extent to which a structure
of credit has been built up in the west is understood.
Although there is considerable dissatisfaction with re-
spect to the price being obtained, it is more and more gener-
ally recognized that it is the result of natural forces, and
although manipulation may be responsible for a part of the
decline the indications are that the price would have tumbled
even under a system of government marketing. Conse-
quently the demands for price control are becoming some-
what less insistent, as it is being realized that in the event
of the fixation of a high price Canada would be undersold by
other producers, for the value of wheat is determined by
world conditions.
Seek Lower Production Costs
However, the future is not without hope for the western
farmer operating under high costs of production. The west-
em universities — magnificent institutions — are concentrat-
ing their attention upon methods of reducing the costs of pro-
duction in agriculture by more eflicient methods, and with the
gradual spread of knowledge through governmental and uni-
versity propaganda, it may be confidently assumed that when
a more normal condition of affairs has been attained the poten-
tialities of western farm lands will be exploited with consid-
erable profits to the producers. In addition to the spread of
knowledge concerning the desirability of more efficient pro-
duction financial assistance has been planned. Already Mani-
toba has in operation a provincial bank which utilizes its de-
posits for the extension of reasonably cheap loans to needy
fai-mers. A similar project is gaining support in Saskatche-
wan and Alberta, and already Hon. C. A. Dunning, provincial
treasurer of the former province, is engaged in the flotation
of a farm loan bond issue of $3,500,000 whereby prosperous
farmers will subscribe towards the funds necessary to assiist
less fortunate producers to secure the greatest possible re-
turns from maximum intensive cultivation of their land. It
has been suggested that such a provincial flotation will preju-
dice the future interests of the producers by forcing mortgage
companies out of the field, but t)ie dearth of capital obtainable
by these private interests from their oi'dinary sources in Eng-
land and Scotland through the adverse exchange rates has, it
is said, forced the provincial authorities to secure the neces-
sary loans.
Co-operative Marketing
It is not only in the lessening costs of production, how-
ever, that the farmer may recoup some of his losses sustained
in the recent abrupt decline, but also in more efficient distri-
bution of his product. The opinion is being generally ex-
pressed, however sound the basis in fact, that there are many
preventable wastes in the marketing of Canadian grain, and
the producer is determined that he will lessen the margin be-
tween the consumer and himself. A co-operative marketing
system is already under consideration by the Canadian Coun-
cil of Agriculture, and the success that has accompanied such
ventures in the past with respect to co-operative elevators,
co-operative live stock associations, co-operative creameries,
and so forth, augurs well for the new plan. It is a per-
fectly normal development, and despite the antagonism it may
arouse in the minds of the middlemen whom it will injure
financially it will be welcomed by all those wVio recognize that
competition is the soul of busings,.-.. If tht. seiyice can be
rendered more satisfactorily or more efficiently it will be a
magnificent boon and will richly deserve its rewards. It
should be purely a matter of competitive business, and as
such must not be confused with political organizations winch
seek to use the credit of the state for class benefits.
Manufacturing in the West
Not only ui the agricultural sections of the province, hov7-
ever, have there been economic advances during the past year.
Those who think of the prairies simply as great fertile plains
are doomed to disappointment in their verdict as they travel
across them and note the development of industrial Po "r '■
tialities. All of the western provinces have great possibili-
ties in mining, lumbering and manufacturing, and astoundmg
progress will be made in the next few years if conditions are
favorable. To-dav there are more than seven hundred mem-
bers of the Canadian Manufacturers' Association west of the
great lakes, whereas two decades ago there was not one. Two
years ago, according to the Dominion Bureau of Statistics,
there were in Saskatchewan alone 1,122 manufacturing estab-
lishments, capitalized at §39,476,260. employing 8,188 persons,
and turning out a product valued at $50,096,635, and since
then there have been several hundred additions. Besides the
wonderful mining possibilities of northern Manitoba and the
tremendous coal deposits of Alberta there are opportunities m
Saskatchewan for the development of industries— manufactur-
ing chemicals, glass, paper, brick and tile, fine china and other
commodities. Indeed, the clay deposits in Saskatchewan are
38
T ir E i\I O N E T A R Y TIMES
Volume fi('i.
very valuable and are being exploited already by American
interests. In the neighborhood of Ceylon, Sask., there are
sodium sulphate deposits 98 per cent, pure, considered to be
the most valuable in the world. In addition to vast forest
areas in northern Saskatchewan there are mineral deposits of
sodium chloride, salts and potash, coal, gold, petroleum and
natural gas in various parts of the pi'ovince.
Control of Resources
Although the east does not seem to appreciate the value
of these natural resources, the west is confident that in time
they will be exploited, adding materially to the wealth of the
provinces, and a conflict is being precipitated to have the
federal authority return to the provincial governments control
of their natural resources. Nor are the westerners pei-mit-
ting them to lie idle. Their potentialities are being spread
broadcast by reports of investigations by provincial depart-
ments, by the Western Canada Industrial Association, and Co
some extent by western members of the Canadian Manufac-
turers' Association.
To reiterate in detail the production and possibilities of
the west would simply emphasize the fact that its resources
have hardly been tapped. Capital and not credit is needed to
develop the country, and during the next few years in the
period of readjustment and development great supplies of cap-
ital and thousands of good immigrants will be necessary to
exploit western resources. During the past year the govei-n-
ment estimates place the wheat production alone at nearly
•';()0,000,000 bushels, with excellent yields per acre, and yet the
wheat lands of the west have scarcely been touched. The
superintendent of immigration has calculated that there are
128,000,000 acres awaiting development on the prairies.
Land values have increased but are still below eastern Canada
and the United States, and the opportunities for increased set-
tlement and greater production of grains and live stock will be
exceedingly attractive.
Encouraging Immigration
Still more sympathetic treatment must be expected from
the Dominion and provincial authorities in spite of their gen-
erous assistance in the past with respect to inducing desirable
immigration and the extension of financial aid. The Western
Canada Colonization Association — a development of the past
year — has been foi-med by eastern and western business men
seeking the largest realization of the prairie pA)vinces' heri-
tage to assist settlement, and in spite of the words that have
been uttered and written, it is the opinion of the WTiter that,
fundamentally, there is nothing which should antagonize east
and west, and that a compromise upon national differences can
be secured if mutual tolerance is evinced by both sides of the
so-called controversy.
A great deal of dissatisfaction has been expressed in the
past in the west concerning the treatment by the chartered
banks, and the establishment of provincial bands and farm
loan boards has been largely an outgrowth of their apparent
"stinginess" of funds necessary for western development. It
is not always certain, however, that the western farmer prop-
erly appreciates the functions of commercial bands. The ex-
tent to which the banks of Canada have built up the prairie
provinces has not been fully realized, but there is a limit to
the extension of credit, for credit must be based upon ultimate
ability to repay the debt — that is, upon the pi-oduction of
future goods.
Savings Must Accumulate
The sources of capital — which in the final analysis is not
money, but the surplus of production over consumption —
must come fi'om the savings of Canadian individuals and cor-
porations cognizant of the possibilities of the prairie prov-
inces, and whether these savings are derived ultimately from
banks, farm loan boards, mortgage companies or any other
form of business organization, the extension of credit will
have to be founded upon the probable productiveness of the
western farmers, and not, as in the past, upon a hit-and-miss
rule of granting credit to anyone who desired it. The former
is the only safe way of western development — .slow, perhaps,
but sure.
The Tariff and Taxation
Finally any reference to economic developments in the
west would be incomplete without a brief review of the atti-
tude towards the tariff and taxation — the fundamental eco-
nomic problems of Canada. During the past few years there
have arisen in western Canada the great farmers' organiza-
tions, which are firmly entrenched, it would seem, in the hearts
and lives of the great mass of the people. In every commu-
nity there is a farmers' or a grain growers' local under the
supervision of a provincial executive, which in turn reports
to the Canadian Council of Agriculture in Winnipeg — an in-
credibly strong organization of farmers because they have
been fired with zeal for a cause which they believe is just.
Without commenting upon the possibilities of such an or-
ganization it is safe to say that the injustices and oppressions
of the tariff — apparent or real — and the desire for a better
standard of living have bound the farmers into a unit seeking
the achievement of these aspirations through freer trade and
better conditions on western farms. Anyone who has trav-
elled in the more remote districts realizes that the pioneer
days are not yet over and he will sympathize with the farmers
in their desire to secure a better standard of living. The
space is too limited to go into a discussion of the means
which their organizations are utilizing to effect these ends —
suffice it to say that the prospect of an early election is con-
solidating the farmers' movement and is simply in line with
group tendencies the world over seeking to achieve real eco-
nomic democracy.
Future of the West
From an agricultural, industrial and social standpoint the
west is facing great days and each setting of the sun sees the
energetic, alert and progressive western pioneers one day
neai'er their goal of making the prairies the banner provinces
of Canada. Reverses there have been in the past; reverses
there shall be in the future. But something more than a tem-
porary setback will have to take place to cause the prairie
dwellers to lose heart or courage and bedim their eyes to the
glorious future that lies ahead. Much \vill depend upon the
sympathetic understanding of all classes towards their aspira-
tions and ideals; much will hinge upon the supply of capital
and sound development of western Canada in the urban and
rural areas; much will rest upon the policy of immigration.
To-day there is a real and sincere attempt to get down to a
firm basis and the outcome is in the hands of a hardy breed
of Canadians who will not be deterred from seeking their
highest good by the denunciations of those who cannot see the
forest for the trees, who base their judgment upon what they
conceive to be the tariff heresies of the west, and consequently
would withhold support from men and women who need every
encouragement in their uphill fight.
TORONTO MORTGAGE COMPANY
A contraction in mortgage business is seen in the annual
report of the Toronto Mortgage Co., Which shows mortgage
loans as at December 31, 1920, at a figure of $1,777,241, as
against $1,974,270 at the end of the previous year. As
against this decrease the company's holdings of Dominion
and provincial government and municipal securities have in-
creased from $900,.535 to $989,136, while cash on hand and
in banks is about $27,000 higher at $117,712.
Liabilities to the public are lower, as a result of a re-
duction in debentures, both sterling and otherwise, of $106,-
649, and a slight decrease in deposits of $7,884. The reserve
fund has been increased $30,000. and now stands at $700,000.
as against the outstanding capital of $724, .550. Liquid assets
are approximately eighty per cent., of the total liabilities to
• the public.
The profit and loss account shows interest on invest-
ments at $216,641, being a small increase of about $3,000
over the previous year. The nine per cent, dividend was
maintained, and a balance of $37,588 was carried forward, as
compared with a balance forward in 1919 of $39,412.
January 21, 1921
THE MONETARY TIMES
Trade Expansion Reviewed at
Royal Bank Annual Meeting
Sir Herbert Holt, President, Stated That Considering the Times, Canadians Are a Fortunate
People — Government Ownership of Railways and Fleet More Expensive Than Pension
Charges and other Legacies of War.
Edson L. Pease, Vice-President and Managing Director, Points Out That Business is Being
Brought Down to a New and Sounder Basis — Foreign Branches Important Factor in
Building Up Foreign Trade of the Dominion.
E. Neill, General Manager, Reviews Most Successful Year in History of the Bank-
Assets Now Stand at $594,670,013, an Increase For the Year of $61,022,928.
-Total
The fifty-second annual meeting of the Royal Bank of
Canada marked the close of the most successful year in the
history of the bank, and was also featured by a number of
interesting announcements by Sir Herbert Holt, the presi-
dent, and Edson L. Pease, vice-president and managing
director.
The past year has been one of unusual developments
throughout the world, and many problems have naturally de-
veloped for the larger banks. Sir Herbert Holt made a par-
ticular i-eference to the situation in Canada at the present
time, and touched on what the bank considered to be the out-
look. In discussing this subject, Sir Herbert said: —
"The position of Canada is fundamentally sound. Con-
sidering the times, we are a fortunate people. No nation
has escaped the aftermath of the war, and throughout the
world there is disturbance or unrest. In China, famine
spreads desolation, confusion and terror reign in Russia,
while Europe is grappling with complex problems. Even in
progressive Japan, industry is paralyzed. Contrast this with
our condition. Our crops are the most valuable in our his-
tory, even at the reduced prices obtainable; bank deposits
have doubled since 1913; most merchants have set aside re-
serves in the years of plenty to tide them over a lean period,
and a great part of the bonded indebtedness of the country
is held within the Dominion. Moreover, our friendship and
cordial relations with our neighbor render unnecessary the
expenditure for armaments which is strangling Europe. Un-
employment is less, and business failures are fewer, com-
paratively, than in the United States, and when our war
liquidation is over, we should be among the first to enter upon
a new era of stable prosperity."
HIGH COST OF GOVERNMENT OPERATION.
Sir Herbert also dealt woth the Government control and
pointed out the tremendous load that is now being inflicted
upon the country through Government ownership of rail-
ways. Discussing the question of Government control. Sir
Herbert said: —
"Government control has practically disappeared during
the year just past — wheat, paper and sugar being the com-
modities to be freed from regulation. Government owner-
ship of transportation systems has developed. Without any
advantage to the public in efficiency or rates, the operation
of our national railways during the past twelve months has
resulted in a loss which will probably more than absorb the
amounts collected on excess profits and income taxes for the
year 1919. Unless Government methods of operation are
more efficient in this country than they have been in others,
tax payers in Canada may find the maintenance of their
railroads and fleet more expensive than pension charges and
other legacies of the war combined. Of a total of $6,400,-
000,000 spent by the United States during the last year,
$1,037,000,000 went to pay the cost incurred by the Govern-
ment in its control of the railroads. The present waste is
obvious and the remedy should be speedy and effective. The
needs of the country call for business-like administration of
its assets. If this be afforded, we can attack our problems
with added confidence."
SITUATION IN CUBA.
Owing to the important developments that ha%'e occurred
in Cuba and the interest which the bank has in that centre,
Sir Herbert reviewed the Cuban situation and also drew at-
tention particularly to the bank's position. In dealing with
this subject. Sir Herbert said: —
You will doubtless wish to hear how we fared in Cuba,
in view of the recent financial disturbances in that Island,
and our interests there. The business of Cuba is bound up
in sugar. Production last season was some 700,000 tons less
than estimated, and prices naturally rose abnormally, reach-
ing over 23 %c. last May. A sugar famine in the United
States appeared inevitable, when relief came from an un-
THE MONETARY TIMES
Volume 66.
expected source. Financial disturbances in the Far East,
and the sudden fall in the silver exchanges, led to the curtail-
ment of Far Eastern purchases of sugar in the Java market.
This sugar was available for the United States, and it is
sstimated that that country purchased altogether 500,000
tons of Japan and other sugars, of which ordinarily not a
pound would have come to this continent. The market price
broke violently and has continued steadily downward, to-day
the quoted price being 4% cents per pound. Cuba was left
holding a stock of 300,000 tons, about 109'r of last season's
production. 90% of the crop had been sold at prices which
averaged not less than 10c. per pound, and the amount thus
realized, over $700,000,000, was much greater than that
obtained for the whole crop of 1918-19, itself a record sea-
son. Certain individuals and firms, however, were hard hit
by the collapse in prices. The fall left them to face a severe
loss, and these individual embarrassments were the original
cause of Cuba's troubles. The difficulties of one Cuban bank
which suspended operations in October last, were caused
only partly by losses in sugar. The main reason was prob-
ably over-extension of its business. On its suspension the
Cuban Government declared a moratorium.
Thanks to the precautions taken by our management in
early warning our officers in Cuba of the inevitable reaction
that would follow the excessively high prices, and instruct-
ing them to adhere to our policy of making no advances foV
speculative purposes. I am pleased to tell you that we have
made no loss, and do not anticipate making any loss as a re-
sult of the present financial disturbances; in any case full
provision has been made for unforeseen contingencies. We
are conducting business as usual, not taking advantage of
the moratorium, being satisfied, after an experience of over
twenty years, that there is no safer banking field than Cuba.
While I see no need for pessimism at this time, we
should look the situation in the face. The present reaction
is a temporary set-back only, but before normal business
activity is restored, further liquidation is inevitable. In the
United States this liquidation has proceeded far more rapidly
than here, and the fall in prices has been much greater than
with us. I see no escape from the common level. This
further fall will involve business losses, curtailment of manu-
facturing and partial unemployment of labor. Trade will
then be placed on a sounder and surer basis. There is com-
fort in the thought that a return to normal prices will bring
relief from the high cost of living, which has become so
intolerable.
VICE-PRESIDENT'S REMARKS.
Edson L. Pease, the vice-president and managing direc-
tor, dwelt more particularly with the affairs of the bank and
the endeavors that were being made all the time to increase
the export and import trade of the country. Dealing with
this form of business, Mr. Pease said : — •
"Despite the generally unsatisfactory condition of inter-
national trade, due to impaired buying power and deprecia-
tion exchanges, we have every reason to be thankful for the
results and the quality of the business we have built up in
the countries where we are represented. Our branches in
South America are making steady progress, and we are well
pleased with the outcome of our first year's operations there.
We are moving slowly, taking no undue risks. It must not
be supposed that a bank's interests in a foreign country are
necessarily jeopardized in consequence of weak exchanges.
As a matter of fact, we are not affected by the wide up and
down movements in exchange, since our position in the ex-
change market is covered dally by sales against purchases
and vice versa.
ADVANTAGE OF FOREIGN BRANCHES.
"Without exception the operation of our foreign branches
has been satisfactory, and in this connection I desire again
to put on record my views as to the advantage of conduct-
ing foreign business, where possible, through the medium
of our own branches rather than through affiliations with
other banks, which we do not control. It is only through its
own branches that a bank can keep in close touch with its
customers and give efficient personal service.
"That the expansion of a bank does not mean a drain
on the main organization is something which I have had
occasion to point out many times. The figures of our
foreign loans and deposits as they stood at November 30th
last year affirm this fact.
Deposits $164,000,000
Loans $102,000,000
PREFERENTIAL TARIFF WITH BRITISH WEST INDIES.
"The preferential tariff agreement between Canada and
the British Colonies in the Caribbean, which now awaits
ratification by the Dominion Parliament, will not only result
in trade advantages, but will serve to strengthen the move-
ment for closer union. A most gratifying feature is that
Jamaica, British Honduras, Bermuda and the Bahamas,
which did not join in the old pact of 1912, are parties to the
new arrangement. Canadian trade with these British
colonies, which was increasing steadily under the influence
of the preferential tariff arranged in 1912, will receive fresh
impetus from the very favorable conditions now in prospect.
The trade of the British West Indies reaches surprisingly
large figures, the total value of their 1919 imports and ex-
ports being about 250 million dollars. Of this amount, a
little over 100 million dollars is represented by imports, one-
third of which is supplied by the United States.
"In summing up the general business situation, while I
feel that casual optimism is out of place, and that we ought
all to recognize the fact that business is being brought down to
a new and sounder basis, I think that undue pessimism is just
as bad as the other extreme. Whatever the difficulties we
have to face in the near future, the fundamentals of Can-
ada's position are sound, granted that the Canadian people
work hard and exercise reasonable economy.
"In the period we are thus looking forward to, I feel
confident that this bank will play no small part."
DEVELOPMENT OF FOREIGN TRADE.
Mr. Pease also touched upon the commercial relations
between Canada and the United States. Dealing with this
subject and the manner in which our exchange had been
affected, he said: —
"The character of our foreign trade has also changed
sharply. The year ending November 30th, 1920, shows an
adverse balance of $56,000,000 as compared with a favorable
balance for the year ending November 30th, 1919. of $330,-
000,000. Exports during the past year were well maintained
at slightly above the level of the previous year, but imports
showed an increase of $425,000,000. Our imports from the
United States amounted to $925,000,000, an increase of $200,-
000,000 over the previous year, due in large part to increased
prices of commodities. During the five years 1910-1914. the
percentage of exports to the United States to imports from
the United States averaged 40 per cent. Since then the per-
centage has improved, and will probably be 58 per cent, this
fiscal year. Our exports last year were notably supported
by sales of lumber, pulp and paper. On the other hand, the
consumption of those articles for the supply of which we are
largely dependent upon the United States,' is increasing with
the growth of the country. Iron and steel products imported
during the six months ending September were of about the
same value as those for the entire fiscal year 1913, viz.:
$130,000,000. The year's purchases of cotton and its pro-
ducts in the United States were $70,000,000, compared with
$17,000,000; automobiles, 11,000 as against 8,000; $12,500,000
worth of automobile parts as compared with less than a
million dollars. We consumed 300,000,000 gallons of United
States petroleum, gasoline and lubricating oils, as against
190,000,000 in 1913."
January 21, 1921
THE MONETARY TIMES
NECESSITY OF INCREASED EXPORTS.
Is it any wonder we are suffering from adverse exchange
rates? The only correctives are, we repeat, the curtail-
ment of imports of non-essential articles and the increase
of exports. So far as a country's currency is at a discount,
the cost of imports is increased, and wide fluctuations tend
to change legitimate business into speculation. We in Can-
ada have been fortunate in that our exchange relations with
the United States have been fairly stable compared with
those of other countries with the United States. The
premium on American funds ranged from eight to nineteen
per cent, during the past year, and is now 15Vr ■ Contrast
this with the discount on other currencies in New York on
December 31st; Sterling, 27%; French exchange, 69%; and
Italian exchange 32%.
Difficulties incident to a period of falling prices in Can-
ada and abroad have been lessened by the fact that this
year's field crops in the Dominion have been abundant, and
are estimated to represent in value an increase of $184,-
000,000 over the previous year, this despite the fact that the
acreage sown to wheat in 1920 was about a million acres
less than the previous year, and the average price for wheat
is low compared with the price paid by the Government last
year for the entire crop, viz.: $2.63 per bushel. The partial
abstention of the British Royal Commission from buying
new crop wheat has been an unfortunate feature, but their
place in the market has been taken to a certain extent by
the United States and various continental countries.
In summing up the general situation in Canada, Mr.
Pease said: —
"In summing up the general business situation, while I
feel that casual optimism is out of place, and that we ought
all to recognize the fact that business is being brought
down to a new and sounder basis, I think that undue
pessimism is just as bad as the other extreme. Whatever
the difficulties we have to face in the near future, the
fundamentals of Canada's position are sound, granted that
the Canadian people work hard and exercise reasonable
economy."
BEST YEAR IN HISTORY.
C. E. Neill, the general manager, in reviewing the state-
ment for the past year, said: —
"The Statement submitted to you to-day records an-
other year of substantial growth. The total assets of the
bank are now $594,670,013.43, an increase of $61,022,928.50
for the year. Total deposits are $455,017,387.02, the growth
being $61,463,229.74.
"It will be noted that there is a shrinkage in free de-
posits, which is accounted for by the fact that on November
30, 1919, we had large special deposits in connection with
subscriptions to the Victory Loan.
"The substantial increase in interest-bearing deposits
is a particularly satisfactory feature, inasmuch as deposits
of this class to a considerable extent represent the savings
of the people.
"The note circulation of the bank continues to expand.
"An increase of no less than $52,951,830 in current loans
is the result of our policy of affording legitimate assistance
to clients of the bank during a period of great trade ex-
pansion. The percentage of current loans to total assets
of the bank is now 48.16.
"The substantial reduction in our holding of Government
securities is due chiefly to repayment of loans granted to the
Imperial Government for war purposes.
"In view of the heavy demands made on us by com-
mercial borrowers, it is satisfactory to note that the liquid
position of the bank is well maintained, liquid assets being
50.50% of liabilites to the public, our actual cash and de-
posits in banks being over 30% of our total liabilities.
INCREASE IN CAPITAL AND RESERVE.
"The capital of the bank has been increased during the
year by the issue of 34,000 shares to our shareholders at
$150 per share. Although the final instalment is not due
until April 11th, only $265,990 remains to be paid on ac-
count of the new issue.
"The Reserve Fund now equals the capital, having been
increased through the year by premium received on new
stock and by an appropriation fr(5m profits.
"The substantial growth in the bank's resources has
resulted in a satisfactory increase in earnings, the net profits
being $4,253,649.24, equal to 23.70';<j on our capital, or
12.01% on our combined capital and reserve.
"The usual dividends and an additional bonus of 2%
have been paid to shareholders, and a balance of $546,928.20
is carried forward in Profit and Loss Account.
"I desire to draw particular attention to the fact that in
addition to WTiting off all bad debts, the fullest provision
has been made for any loans of a doubtful character.
"In view of existing conditions, a particularly careful
revaluation of the assets of the bank has been made, and it
is gratifying to know that our position is a very satisfactory
one. In this connection I wish to draw special attention to
the fact that the loans of the bank are very widely dis-
tributed, and that we have no unusually large individual ad-
vances of any kind on our books." 365
WHAT LABOR WANTS
Demand for Recognition as Well as Remuneration is at Bottom
of Movement — Representation on Directorate
is Fair Solution
By ANGUS LYELL
AN analysis of the labor unrest of to-day reveals some com-
paratively new features. There is, for example, the mat-
ter of combination among trades unions leading to the sympa-
thetic strike, which is usually decried by the public. The
force of this weapon is easily discernible in the conditions sur-
rounding the recent coal strike in Great Britain, where the
railway men and transport workers were prepared to lend
active assistance through cessation of work. Had the strike
developed according to prearranged plan the economic loss to
the nation would have been enonnous.
But the industrial unrest that prevails is not caused
wholly by an agitation for increased wages. Behind the mon-
ctai'y demands is a demand for recognition; for a voice in
industrial management. Mr. Thomas has made this quite
clear on several occasions when arguing for the nationaliza-
tion of raihvays in Great Britain. Profit-sharing and bonus
schemes have been tried, but more or less in vain. These
affect the earnings but not the status of labor, and what the
average workman now wants is a function a good deal differ-
ent from that which we were wont to describe as a cog in the
wheels of industry. It is this effort to place business admin-
istration on an entirely new basis which I propose to discuss.
Capital Now Directs
It cannot be denied that business management has been,
and is, a prerogative of capital. It is perfectly true that the
shareholders of a joint stock company, unless few in number,
have usually but little to say in the actual direction of their
company's affairs. They elect, from year to year, a few of
their members to act as directors. These in turn appoint a
manager and other necessary officials to carry on the busi-
ness of the company, the directors advising on. or merely ap-
proving of, matters of policy and procedure. But while the
management may even dictate to the directors in cases where
the directors are more or less of an ornament or a body cre-
ated to comply with the law, the control is vested fundamen-
t£^Hy in the shareholders — in capital.
What the workers are now demanding, in addition to
wages' which will provide fairly of the comforts of life, is sim-
THE MONETARY TIMES
Volume 66.
ply a share in industrial management. Analyzed and stripped
of side issues it will be found that most of the demands of
labor to-day could be settled if this were granted. Let the
workers elect certain of their members — the most skilled for
the duty to be undertaken • — to sit on the board of directors,
help decide the policy and direct the procedure of the venture,
help appoint the necessary officers, and so on, and we will be
well on the road to industrial harmony.
Could Labor Be Trusted?
There are, of course, several vital pi'inciples involved in
this. With a representation on the directorate labor would
become familiar with the risks of modern business enterprise
and the actual earnings of capital, unless the management was
sufficiently astute to hide from the directors certain funda-
mental financial manipulations. Trade secrets and risks
would become kno^\^l to the representatives of labor and
might be disclosed by them to rival competitors, with serious
ensuing loss, in case of friction with the workmen. Loyalty,
as a general rule, however, may be safely assumed. My own
opinion is that if capital frankly and fully discloses its actual
circumstances labor will co-operate in any reasonable request.
We should not lose sight of the fact that capital is but
one factor in production. It is non-human, as is land, under
which term is included raw material, the forces of nature,
power, the location of an industry, and so on. Labor and
management are the human factors. It is the workman who,
under the direction of the appointees of capital — the manage-
ment— transforms natural forces into marketable commodi-
ties. But it is the representatives of capital who wholly
direct, and herein lies the cause of much of the industrial un-
rest of the day.
Management an Essential Factor
I will admit freely that land, labor and capital, though
assembled in any business enterprise, are virtually useless
without efficient management. They require direction. They
have to be united in their proper proportions. Business ad-
ministration is really a science. In every successful industrial
enterprise there are a few men who direct — perhaps there
iiiay be only one. These are the outstanding personalities in
the venture. And while labor might have a place on the direc-
torate, labor could not materially interfere with the work of
these men without perhaps serious and fatal disorganization.
But, as already stated, representation on the directorate
would enable labor to acquire exact knowledge of the finan-
cial standing of the company. To-day in many cases actual
earnings are covered by clever manipulation, dating back usu-
ally to the time of incorporation. A company which is osten-
(Confnmied on page H)
NOTICE
Condensed Advertisements
nJens
adve
"Positions Wanted." 3c per word : all c
5c. per word. Minimum charge for any condensed advertisement, 65c
per insertion. All condensed advertisements must conform to usual
style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance; 50 per cent extra if charged.
A FAST-GROWING GENERAL AGENCY, with excel-
lent organization, requires additional representation in their
office for the Provinces of Alberta and Saskatchewan. Ex-
perienced underwriters of proven ability. We have three
inspectors in this field. An exceptional opportunity for the
company just entering this territory. Box 373, Monetary
Times, Toronto.
LAKE SUPERIOR PAPER COMPANY, LIMITED
Incorporated under the laws of the Dominion of Canada
To the Holders of Six Per Cent First Mortgage 30-Year Gold
Bonds of the above-named Company
Notice is hereby given that at a Special General Meeting
of Shareholders of The Spanish River Pulp and Paper Mills,
Limited, held at the Head Office of the Company, in the
City of Toronto, on the 23rd day of June, 1920, the Share-
holders approved of a plan to pay the accumulated divi-
dends on the Preference Stock of the Company up to June
30th, 1920, amounting to 42%, by the declaration of a
Preferred Stock dividend, and that in accordance with Clause
5 of a Supplemental Mortgage dated the 20th of January,
1915, made between Lake Superior Paper Company,
Limited, and The Royal Trust Company, the holders
of the various bonds mentioned in said clause, includ-
ing the holders of the bonds to whom this notice is directed
will receive their pro rata share of 10% of the total amount
of the Preference Stock of The Spanish River Pulp and
Paper Mills, Limited, issued in accordance with the said
plan so approved by the Shareholders as aforesaid. Under
the terms of the said Clause 5 of above Supplemental Mort-
gage the holders of the various bonds therein mentioned are
also entitled to 10% of the total amount of any cash divi-
dend paid to the holders of the Common and or Preference
shares of The Spanish River Pulp and Paper Mills, Limited.
A cash dividend of 1%% for the quarter ending September
30th, 1920, has been distributed to both Common and Pre-
ferred Shareholders, and bondholders will be accordingly
entitled to their pro rata share of such dividend.
In order to distribute to the holders of the above-men-
tioned Six Per Cent. First Mortgage 30-Year Gold Bonds
their proportion of said Preference Shares under said Clause
5, and to provide a convenient means of distributing the
above and all future cash dividends to bondholders, it will
be necessary that all holders of said bonds, whether of
registered bonds or bearer bonds, send their bonds at once
to The Royal Trust Company, 59 Yonge Street, Toronto; or
The Royal Trust Company, Montreal, Quebec; or Agents of
the Bank of Montreal, 64 Wall Street, New York City; or
City Trust and Savings Bank, Dayton, Ohio; or The Bank of
Montreal, 47 Threadneedle Street, London, E.C., England,
in order that the bonds may be stamped with a notation
that the holders thereof have received their respective pro-
portion of the said Preference Stock of The Spanish River
Pulp and Paper Mills, Limited, and have also received the
necessary certificate with coupons attached to enable them
to collect their pro rata share of all cash dividends now or
hereafter distributable to bondholders.
Bondholders are urged to send in their bonds to any of
the above places at once, in order that the above distribution
may be made without undue delay.
THE ROYAL TRUST COMPANY,
Trustee.
Toronto, November 24th. 1920. 352
EXECUTIVE. — Age 35. Twenty years' experience.
Eight years in Railway Operating and Construction Depart-
ment, twelve years in .Accounting Department, past five
years as General Auditor. Expert Accountant, thorough
knowledge of railway and construction materials, well in-
formed in financial matters, seeks engagement. Box 381,
Monelarv Times. Toi'Onto.
At the annual meeting of the Ontario Power Company,
which is owned by the Ontario Hydro-Electric Commission,
held in ToroJito on January 12, the 1920 board of directors
was re-elected, and the meeting then adjourned, awaiting
the return of Sir Adam Beck from Europe,
January 21, 1921
THE MONETARY TIMES
Dividends and notices
THE MERCHANTS BANK OF CANADA
QUARTERLY DIVIDEND
A Dividend of Three Per Cent, for the Current Quarter,
being at the rate of Twelve Per Cent, per annum, upon the
Paid Up Capital Stock of the Bank, was declared payable on
1st February next to Shareholders of record on the evening
of 15th January, stock not fully paid up on 1st November to
participate from that date on the amounts then paid up and
on subsequent payments from the dates thereof.
By Order of the Board.
D. C. MACAROW,
General Manager.
-Montreal, 28th December, 1920. 346
CANADA CEMENT COMPANY, LI.MITED
PREFERENCE SHAREHOLDERS
DIVIDEND No. 44
Notice is hereby given that a dividend of 1%% for the
three months ending December 31st, 1920, being at the rate
of 7% per annum on the paid-up Preference Stock of this
Company, has been declared, and that the same will be paid
on the 16th day of February next to Preference Shareholders
of record at the close of business, January 31st, 1921.
H. L. DOBLE, Secretary.
Montreal, January 17th, 1921. 369
Debentures for Sale
NOTICE
is hereby given that the Annual General Meeting of the
Policyholders and Guarantors of the
North American Life Assurance
Company
will be held at the Head Office of the Company, North
American Life Building, 112-118 King Street West, Toronto,
Ont., on
THURSDAY, 27th January, 1921
at 11 o'clock in the forenoon,
for the reception of the Annual Report, a Statement of the
.Affairs of the Company, and the transaction of all such
business as may be done at a general meeting of the Com-
pany.
W. B. TAYLOR,
Januarj- 8, 1921. Secretary.
I HK MONTREAL CITY AND DISTRICT SAVINGS BANK
The .Annual .Meeting of the shareholders of this Bank
will be held at its Head Office, St. James Street, on Monday,
the fourteenth day of February next, at 12 o'clock noon, for
the reception of the .Annual Reports and Statements and the
Election of Directors.
By Order of the Board.
A. P. LESPERANCE,
General Manager.
Montreal. Jaiuiarv 12th, 1921. 368
DEBENTURES FOR SALE
The town of Kamsack has for sale $13,400.00 of 15-
year 7 per cent, debentures, repayable in equal annual in-
stalments of principal and interest combined.
Any further information gladly furnished by
L. W. ANDREW,
Treasurer.
Kamsack, Sask. 354
REGINA PUBLIC SCHOOL DEBENTURES FOR SALE
Tenders will be received by the undersigned up to noon
of February 1, 1921, for the purchase of Regina Public
School District debentures totalling Two Hundred and Fifty
Thousand Dollars ($250,000.00), repayable in thirty years
(30), with interest at six and one-half per cent. (6%%) per
annum, payable half-yearly at (1) Regina, Toronto, and
Montreal, or (2) Regina, Toronto, Montreal and New York,
at the option of the holder.
Tenderers are requested to submit bids for debentures
payable in Canada and New York, and for debentures pay-
able in Canada only.
Tenders will be considered on both the sinking fund
and annuity plans of repayment.
Regina funds and delivery.
No tender necessarily accepted.
For further information address
J. H. CUNNINGHAM, Secretary,
Regina Public School Board,
Regina, Sask.
Regina, Saskatchewan. January 6th, 1921. 353
CHY OK PORTAGE LA PRAIRIE
DIVIDEND NOTICE
DEBENTURES
MIKRAY-KAY COMPANY, LIMITED
Notice is hereby jjiven that a Dividend of one and three-
quarters per cent, for the three months ending January ;51st,
1921 (being at the rate of seven per cent, per annum) has
been declared on the Preference Shares of the Company, and
will be payable on February ist, 1921, to Shareholders of
record at the dose nf business on January 20th, 1921.
FRANK MUNDY,
Secretary.
Toronto. Januaiy 17th, 1921. 366
$20,000.00, 20-year, H'/c Waterworks Debentures.
$34,000.00, 20-year, &>:', Electric Light Debentures.
In Denominations of $500.00, Coupon-bearing Bonds,
dated January 2nd, 1920, maturing January 2nd, 1940. Re-
tired by Sinking Funds at the end of the term. Interest
Coupons payable July 2nd and Januarj' 2nd at par, Montreal,
Toronto and Poi-tage la Prairie.
Sealed Bids will be received by the City Treasurer up
to Five o'clock of Friday, February 11th, 1920.
W. R. GRIEVE,
363 Secretary-Treasurer.
THE
ONETARY TIMES
Volume 66.
WHAT LABOR WANTS
(Continued from page J,2)
sibly paying- a dividend of 10 per cent, on its issued capital
■ may in reality be providing a return of 100 per cent, on the
actual money investment. What labor wants to know is the
exact earning' capacity of the business in order that it, as a
necessary factor of production, may receive its fair and just
recompense.
Agitation for state ownership, communism, or other form
of collective control, springs largely from a desire to replace
the existing management, appointed by capital, with some
other form of management, in the expectation that better
results for labor and the community in general would be ob-
tained. In the propaganda for this fundamental change cap-
ital, as such, is usually denounced. The pertinent thing, how-
ever, is the form of management.
Capital Should Be Honest
There can be little industrial harmony while distrust ex-
ists. If industrial conflict, usually ruinous, is to be avoided,
distrust must be removed. WTiy should labor, as an import-
ant factor in production, not have due representation on the
directorate of all industrial enterprises? Why should the
workmen not know the exact results of their efforts? Why
should actual earnings not be disclosed? Why the setting up
of class distinctions and the relegation of labor to a subordi-
nate position ?
The representatives of capital to-day are, in my opinion,
able to solve the labor problem if they so desire. They can
do this independently of government legislation -and without
financial ruin. Let the management be absolutely honest with
labor, showing the workmen just what is being accomplished
and indicating their plans and desires. Let there be an hon-
est statement of financial facts. Let all manipulation be
eliminated. Let there be due recognition of the place labor
occupies as a factor in production, granting to labor a fair
say in management, adequate remuneration according to the
earnings of the business, and the best possible working condi-
tions. Let these things be and there will be little industrial
unrest.
WESTERN CANADA MUTUAL FIRE INSURANCE
Windstorm Losses, Adjustments and Premiums — Fire
Losses and Their Causes — Relations with Mortgagees
CAUSES of insurance loss and questions of adjustment
were the main topics discussed at a meeting of the
Western Canada Mutual Fire Insurance Association held in
Brandon, Man., December 8-9, 1920, presided over by M. G.
Doyle, of the Miniota Farmers' Mutual Fire. T. H. Lamont,
inspector of the Portage la Prairie Mutual, addressed the
meeting on "Adjustments." Speaking first in reference to
windstorm damage, Mr. Lamont remarked that it was very
essential to have on application complete and accurate par-
ticulars as to the construction of the buildings insured.
Windstorm insurance should be placed on buildings which are
entirely enclosed, set upon and secured to a good foundation.
There should also appear in application a clause setting forth
that nothing would be allowed on shingle or boai'd roofs
over 20 years old; that payment in full for total loss would
be made for such roofs up to 10 years old; after 10 years a
I'eduction of 10'7<: for each year up to 20 years. Flint coat
roofing- should not be insured against wind damage. An
inspection of properties insured against wind damage, prior
to damage, is very necessary. Buildings of poor construc-
tion should be specifically mentioned on applications, "not
insured against wind."
Valuable statistics were quoted giving the ratio of losses
for his company from various causes for the years men-
tioned, as follows: 1916—186 wind claims, $19,443. Fire
damage, same year, $60,485. Lightning damage, same year,
$13,905.
1917—98 -wind claims, $7,140. Fire damage, $71,368.
Lightning damage, $7,638.
1918—92 wind claims, $6,364. Fire damage, $50,253.
Lightning damage, $11,858.
1919—235 wind claims, $25,231. Fire damage, $98,620.
Lightning damage, $13,657.
1920 — Damage from wind is somewhat comparable to
that sustained in year 1918.
Fire Adjustments
Mr. Diggle, of the Sasaktchewan Farmers' Mutual, was
to have addressed the meeting on fire adjustments, but he
was not present, and Mr. Lamont agreed to submit further
experience with respect to loss from this cause. Most of his
trouble in arriving at satisfactory adjustments had been in
cases where the assured were foreigners, the tendency of
these people being to grossly exaggerate values, to conceal
salvaged goods, etc. Many instances of spontaneous com-
bustion had come to his notice, some of these traceable to
greasy overalls being carelessly dropped on the floor of a
building, ignited by concentration of the sun's rays through
a crack, bubble or other defect in window glass. Greasy
jute sacks were another contributory factor. Combustion in
barn lofts had been, in cases where the cause of damage was
traceable, mostly confined to the east end of barns in which
windows were placed. In storing green feed, hay and like
produce, in barn lofts, plenty of salt should be scattered
through it, as salt has been found a good preventative of
heating-, souring and gas fermentation which takes place when
insufficiently cured and dried produce has been deposited in
the barns.
Many fires were traceable to the practice of threshing
straw into barn lofts, some of these caused by matches
passing through the separator becoming ignited and leaving
the blower on fire. In a discussion which took place at this
stage of the proceedings, sevei'al specific instances of fires
from this cause were narrated by members present. The
chairman suggested as an advisable move the getting up
of a uniform circular to the assured and agents, and a series
for farm papers, quoting instances of this nature and ad-
vising precautions which should be taken to prevent this
class of loss.
Difficulty With Mortgagees
The secretary brought to the attention of the meeting
a possible source of trouble with mortgagees, citing a recent
instance in which the Wawanesa had primarily refused to
pay a loss account of an unpaid assessment, the mortgagee
in question being the Manufacturers' Life Insurance Co.
While the loss was eventually paid, the loan company in
question experienced considerable trouble in collecting, and
have been considering refusal of policies in mutual com-
panies.
Ml-. Whitaker and Mr. Doyle were of the opinion that
legislation should be secured in Saskatchewan and Alberta
similar to that in eff'ect in Manitoba whereby it is obligatory
upon any mortgagee to accept any policy tendered by an
assured provided such policy is in a mutual company which
has been in operation for three or more years. While such
is very favorable legislation, it was pointed out by Messrs.
Cook and Reed that in the absence of such legislation at
present it would be inadvisable to antagonize the loaning
companies, and that, while the mortgage clauses as a matter
of fact affoi'd ample protection to mortgagees, it would not
be amiss to confirm their provisions.
The following resolution was passed on this point: —
"That we i-ecommend to the members of the Association
that an assurance be given to vendors and mortgagees that
all companies, members of this association, appreciate their
obligations and shall continue to respect the rights of vendors
and mortgagees under the mortgage clause agreement where
the premiums are on the assessment note plan."
January 21, 1921
THE MONETARY TIMES
iillllllltllllMllllllllllllllllllMlllirillllllllllllllllllllllllMIIIIIMIIIIIIIIIIIIIIIIIIIIIMIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIIIIIIlin
I CHARTERED ACCOUNTANTS I
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Baldwin, Dow & Bowman
CHARTERED ACCOUNTANTS
OI-FICES AT
Edmonton - • Alberta
Toronto • Ont
CHARLES D. CORBOULD
Chartered Accoontant and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
Correspondents at Toronto. London, Eng..
Vancouver
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
W. A. Bawden, C.A. (F.C.A
Engia
nd and
VValesl.
F, H. Kii
D.C.A
BAWDEN,
KIDD
&
CO.
Chartered
Accou
ntani
s
CENTRAL BUILDING, VICTORIA
, B.C.
Branch a
Naaaimo,
3.C.
Telegraphic a
nd Cable Address
•■ Nedwab.
• Victoria.
B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON - ONTARIO
Established IKK.'
W. A. Henderson & Co.
Chartered Accountants
S08-S09 Electric Railway Chambers
Winnipeg, Man.
W. A. Henderson. C.A. J. J. Cordner. C.A.
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407 408 MONTREAL TRUST BUILDING
WINNIPEG
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS
24 King Street West - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO.
ChtirtcrctI Accouittuuts. Aiiililitrs.
Trustees. Uauidators
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne,
Mulholland.
Howson
&
McPherson
CHARTERED
ACCOUNTANTS
Specialists on Kactobv Costs am. Pr
OniCTION
Phone
Main
3420
Ban
Hamilto
^B'id«. TORONTO
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING TORONTO, CANADA
K
Williamson. C.A..
J. D.Wallace. C.A. 1
A
J. Walker. CA.
H. A. ShiachC.A.
RUTHERFORD WILLIAMSON & CO. |
Chartered Accottnin
nis. Trustees and
Liqnidt
tlors
SK Adkuaiue Street
East, TORONTO
604 .McGiLL BUILDI
XG. MONTH EAL
Cable Address-
"WILLCO."
Kt
presented at Halifax
Vancou
St. John. Winnipeg.
CLARKSON, GORDON & DILWORTH
Chartered Accountants, Trustees,
Receivers, Liquidators
Merchants Bank BIdg.. 15 Wellinston Street West Toronto
E R C Clarkson c . ui ., j ,o... G. T. Clarkson
H. D Lockhart Gordon Established I(>b4 R. J. Dilworth
Norman B. McLeod
Chartered Accountant
AUDITS INVESTIGATIONS
COST ACCOUNTING
803 Kent Bldg. - TORONTO
Phone MAIN 3914
HARBINSON & ALLEN
CluiilcreJ Accoanlanh
40$ Manning Chambers
TORONTO
Arthur Phillips & Co.
CHARTERED ACCOUNTANTS
508-509 Electric Railway Chambers
WINNIPEG ■ Man.
Cable Address—" L'nravel "
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THE MONETARY TIMES
Volume 6(>.
DlSri TE OVER SUBSCKIl'TION TO STOCK
Alberta Supreme Court Holds that After Agreement Had
Been Made to Buy Back Shares, Shareholder Lost
Rights by Repudiating Contract
IN an application by a subscriber for shares in a company
to have liis name removed from the register the Supreme
Court of Alberta held that "a subscriber for shares in a com-
pany issucil to him upon misrepresentations sufficient to
entitle him to rescission is not entitled to have his name re-
moved from the register if he has entered into an agreement
to sell his shares to other members of the company. The
agreement expressly keeps the shares alive and recognizes
them as his property."
.\greement to Repurchase Shares
The facts of the special case stated to the court were:
The applicant, with others of his class, subscribed for shares
in the company. A couple of years later they claimed to
have learned of some facts in connection with the purchase
of the land, for the acquisition of which the company had
been formed, and with respect to the constitution and distri-
bution of the company's shares with which they were not
theretofore familiar, and they brought action against the
company anil some of its directors. Two days later a settle-
ment of the action was arrived at, the terms of which were
embodied in a written agreement. The company was not a
party to this agreement. By it these individual defendants
agreed to buy the shares of these dissatisfied shareholders
at the prices paid by them therefor, with interest, and to pay
all calls made or to be made on them, and to indemnify them
against all liability therefor. Each of the shareholders agreed
to transfer his shares to the nominee of the defendants' upon
payment in full therefor, and not to vote on the same until
after default had been made by the purchasers. The share-
holders who were parties to this agreement seven months
after its date brought action against the other parties to it
for specific performance of it, in which they afterwards ob-
tained a judgment for specific performance, with a personal
judgment against the defendants therein for the amounts
respectively owing to them under this agreement. The com-
pany was not a party to this action. This judgment directed
a rectification of the company's share register by removing
therefrom the names of these dissatisfied shareholders and
substituting therefor the nominee of the purchasers of their
shares. The company refused to obey this order, and a motion
at the instance of the plaintiffs in that action, including the
applicant, to compel it to do so was cut short by the winding-
up order.
His Lordship's decision is as follows: "The first ques-
tion submitted for my opinion is whether or not the appli-
cant, who was one of the plaintiffs in each of the above-
mentioned actions and a party to the above-mentioned agree-
ment, is entitled to have his name removed from the list of
contributories. It is assumed, for the purposes of this case,
that shares were issued to him upon misrepresentations suf-
ficient to entitle him to rescission, and that he has not waived
his rights arising therefrom, or estopped himself from setting
them up as a defence otherwise than by reason of the facts
contained in the submission and the accompanying documents.
"The applicant's right to rescind was lost by the com-
mencement of the winding-up proceedings unless before then
he had repudiated his shares and had commenced proceedings
for rescission. The bringing of the first action, in which he
was a plaintiff, was a proceeding brought for the rescission
of his contract to take these shares, and it was an effective
repudiation of them.
Repudiated Contract
"In this case the applicant most definitely repudiated
his contract by the bringing of his action. He sought by it
escape from his position as a shareholder. Then those whose
acts he relied upon to entitle him to this relief offered to pay
him back his money, with interert, and indemnify him from
further liability if he would ti-ansfer his shares to them,
and this he agreed to do. In this way he thought that he had
accomplished what he set out to do, though by a different
method, and thus got rid of ,a bad bargain. In one sense,
nothing that was thus done was done "toward the company,"
for it was no party to this agreement. But in another sense
it was. If the applicant had persisted in his original course
of action and succeeded in it, the result would have been that
his shares would have been wiped from the register entirely
and this transaction would have been as though it had never
taken place. By reason of his agreement and of the judg-
ment, which he has secured for the specific performance of
it, the shares were expressly kept alive, and the purchasers
of them became entitled to have them transferred to them
upon compliance with the company's requirements in that
behalf. The applicant's right to have his name removed from
the register and from the list of contributories is based en-
tirely upon his claim that he is entitled to rescission of his
contract. It is impossible for him to make restitutio in
integrum because of his agreement to sell his shares, and he,
therefore, is not entitled to rescind. His claim for rescission
is absolutely inconsistent with his recognition of his con-
tract in his agreement to sell his shares, his insistence upon
that agreement by his action to enforce it, and his subse-
quent attempt to continue his original contract by having
the purchaser of them registered in the books of the com-
pany as the owner of them.
"In my opinion, the applicant is, for the reasons given,
not entitled to have his name removed from the list of con-
tributories."
DEED OF LAND TO DEAD PERSON INOPERATIVE
Ontario Supreme Court Decision — Drawn With Purport to
Convey to Heirs or Assigns
IN an application to the Ontario Supreme Court before
Justice Orde, the decision of which is of interest to trust
companies, it was held that a deed to a person, his heirs and
assigns, that person having previously died, is wholly in-
operative to convey any estate either retroactively to that
person in his lifetime or directly to his heirs.
His Lordship's statement of the facts and decision there-
on are as follows: —
One of the links in the chain of title as registered is
a conveyance by way of grant from one Levi Snider to one
Henry McCartney, dated the 24th April, 1879, andjregistered
on the 12th of May, 1904. Henry McCartney had in fact
died on the 4th January, 1879, more than three months prior
to the date of the conveyance. It is not suggested that the
deed was really executed prior to his death and by some
error dated afterwards, but it appears that McCartney had
purchased, or agreed to purchase, in his lifetime, and died
before the conveyance was made; and that, through the
stupidity of some unlicensed conveyancer, the deed was so
drawn and executed as to purport to cnvey to Henry Mc-
Cartney, his heirs and assigns.
The purchaser objects to this deed as being wholly in-
operative to convey any estate in the lands to any one. The
purchaser's objection must be sustained. Among the neces-
sary incidents to a deed are that there shall be at least two
parties to it, and that it shall be delivered: (First), Coke
upon Littleton, 35, b.; Blackstone, vol. 2, pp. 296 and 306.
Among the re'quisites mentioned by Blackstone (p. 296) is
"that there be persons able to contract and be contracted
with for the purposes intended by the deed." There was not
when the deed was executed by Levi Snider any such person
as the Henry McCartney with whom he purported to con-
tract. Nor was there any such person to whom or for wtiose
benefit the deed could be delivered. There is no principle
which can make the purported conveyance operate retro-
actively so as to vest an estate in Henry McCartney during
his lifetime.
January 21, 1921
THE MONETARY TIMES
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BRANDON
J. p. Kilgour. K.C. G. H. Foster
R. H. McQueen
KILGOUR, FOSTER & McQUEEN
Barristers, Solicitors, Etc.,
Braodon, Mao.
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and Loan Society. North
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nilton Provident
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LETHBRIDGE, Alta.
Conybeare, Church & Davidson
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Solicitors for Bank of Montreal, The Trust
and Loan Co of Canada, British Canadian
Trustee.. &c., «c.
C. F. P. Conybeare. K.C, H W. Church, M.A.
R. R-. Davidson. LL.B.
Lethbridge • - Alta.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT. SASK.
CALGARY
Charles F. Adams, K.C.
Bank of Montreal Bldg.
CALGARY . - ALTA.
W. P. W.Lent Alei. B.Mackay. M. A., LL.B.
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LENT. MACKAY & MANN
Barristers, itoUcliors, Nolarlrs, etc
30S Grain Hschange BldK , Calgary. Alberta
CabU AddretM ." Lenio." Weitem UnioitCodt
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Tl>e Northern Trusts Co.. Associated Mort-
gage Investors, ^c ^
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WRIGHT & WRIGHT
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Suite 10<15 Alberta Block
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& GRANT
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514-18 McLeod Bldg. Edroooton, Alberta
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■Dd BROOKS, Alta.
MOOSE JAW
Grayson, Emeraon & McTaggart
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Canadian Bank of Commerce
Moose Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
REGINA
Gordon, Gordon, Keown
and Collins
Barritter*, Solicitors, &c.
Aldon Building, REGINA, Sask.
Solicitors for Imperial Bank of Canada
SASKATOON
C. L. DUHIE, B A. B. M. WAKB1.IN0
DURIE & WAKELING
Itarrlsters and Solicitors
Solicitors for the Bank of Hamilton. The
Great West Permanent Loan Co. The
Monarch Life Assurance Co.
Canada Rulldlns Saskatoen, Canada
ChasG Locke. Major J. McAughey.O.B.B.
LOCKE & McAUGHEY
Barristers, Solicitors, Etc.
208 Canada Building
SASKATOON • CANADA
VANCOUVER
K I
K L
.H.Douglas J.G.Gibsoo
BOWSER, REIO, WALLBRIDGE
DOUGLAS & GIBSON
Barristers, Solicitors, Etc.
Solicitors for Bank of .Montreal (Bank of
Br
>;h North America Branch)
Torkthire Building. S2S Sermosr St., VancoQTer, B.C.
J. A. THOMPSON & CO.
Government and Municipal Securities
Western MnnU^psI, .Srhool and .Saskatrticwan Knml Trie-
pbon« Co. debentnres specinllzed In.
CORRESPONDENCE INVITED
Union Bank Building - WINNIPEG
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK, BOND and GRAIN BROKERS
(Direct Private Wirel
Grain Elxchange
Calgary, Alta.
A. J. Pattison Jr. & Co.
Members
Toronto Stock Exchange Montreal Stock Exchange
Specialists Unlisted Securities
IDS BAY STREET - TORONTO
48
THE MONETARY TIMES
Volume 66
News of Industrial Development in Canada
Revival in Steel Trade )Sot Yet in Sight— Wages and Prices are the
Principal Obstacles — Coal Mining Companies Curtailing Operations-
Large Cuts in Textile Prices, States Manufacturer — Outlook for Woollens
Brighter — Brick Company Anticipates Extensive Building in the Spring
POSSIBILITY of an immediate revival in the steel in-
dustry in Nova Scotia is not held out by officials closely
in touch with the situation, while practically the same condi-
tions rule in other parts of the country. Wages and prices
are the principal obstacles, and until these are ovei'come it
is not expected that any favorable developments will take
place. President Wolvin, of the Dominion Iron and Steel
Corporation, stated recently in Montreal : —
"The continued operations of the company will depend
entirely on the volume of business for which orders may be
received hereafter. The orders now on hand are no more
than sufficient to keep the plant in operation until about the
end of the present month. Pi"ospective orders can only be
secured on a competitive basis, and to enable the company
to be successful in this a substantial reduction in the cost
of production will have to be made, including reducing wages,
and this alternative the company is reluctantly obliged to
resort to in the expection that sufficient orders may be ob-
tained to keep as large a number as possible, if not all, of
those on the payroll at present employed."
The Steel Co. of Canada at Hamilton, and the Algoma
Steel Co. at Sault Ste. Marie, are only operating the finish-
ing departments, and are not making pig-iron or steel.
Coal Industry Also Depressed
Depression in the coal trade is also taking place, and
again Nova Scotia is the province principally affected. It
is natural to expect curtailment of operations 'in this field,
at the time of depression in the steel trade, as the two in-
dustries are so closely related. As stated in these columns
last week the smaller companies were moi-e gi'eatly affected,
but the large companies are not escaping without feeling the
pinch. H. J. McCann, general manager of the Dominion Coal
Co., recently stated at Glace Bay, N.S. : —
"The depression which has been felt in other industries
for the past several months has commenced to affect the coal
mining industries in Nova Scotia. While this is a natural
sequence of the curtailment of the manufacturing industines,
the depression was not expected to affect the Dominion Coal
Co., as they had lately secured a renewal of the orders from
the Dutch government, v/hich they had lost when the embargo
was put on foreign shipment. However, in the last few days
these orders have been cancelled. This, in addition to the
reduction in the Steel Co. requirements from 35,000 to 700
tons per day, leaves the company with only the maritime
provinces as market for their output. As this market is very
limited, it will not afford sufficient outlet to enable the mines
to work more than half time.
"In order to meet the new conditions a readjustment of
the forces in the machme shop, railways and other auxiliary
departments has to be effected. Work in the machine shop
will be reduced and over one hundred men will be laid off.
Construction work will be limited to those jobs which are
absolutely necessary at the present time, resulting in a re-
duction of several hundred men in this department.
"About one hundred men now employed in repairing
and upkeep of company houses will also be laid off within
the next week. As the amount of traffic of the Sydney and
Louisburg Railway and coal handling at piers will be greatly
reduced, a number of train crews and pier men will also be
laid off. It is the intention of the company to bank con-
siderable coal with the hope that they may be able to enter
Montreal market next summer, but as the American com-
petition is verj? keen in this, there is no assurance that with
the present high cost of production Nova Scotia will be able
to compete."
At the same time word comes from Alberta of reduced
operations in the coal mines there. Reduction of forces in the
coal mines all the Vi'ay along the Crow are going into effect.
Several of the big mines are on part time. However, the
situation in the mines of this district is not so bad as at
Drumheller where there are practically no orders. Many
of the miners of the Lethbridge field will be kept on at de-
velopment work, as for the past eighteen months thex'e has
been little chance to undertake anything but active mining
owing to the heavy demand.
Textile Prices Lower
F. G. Daniels, general manager of the Dominion Textile
Co., states that the company's new price list is more than
50 per c€nt. below the high point gf last summer. This re-
duction is fully equal to that made by the American mills,
and has been quite effective in providing Canadian consumers
with their customary requirements without calling upon the
American product. Only two of the mills of the company,
he adds, could be said to be working much below normal.
These were mills devoted more particularly to the manufac-
ture of automobile and rubber work, and were operating
about half time. The other mills of the company were all
fully employed, and some were running overtime. The sup-
ply of labor is much improved but up to the present the wage
scale remains as heretofore.
According to a statement by Secretary N. T. Macleod,
of the South Alberta Wool Growers' Association, the out-
look is somewhat brighter than it has been. The last report
sent out by the government shows that the Canadian trade
in wools continues quiet. A number of mills have been
shut down pending a change in the situation. Mills that
are now in the market for supplies are buying very
cautiously as they have only a few new orders to fill. Sales
of medium clothing wool are reported as being at 35 cents,
which Mr. Macleod says is slightly in advance of the gen-
eral expectation in wool circles.
Referring to the future, Mr. Macleod said that Canadian
wool growers may have to look to England before long for
a market. The English buyers are now satisfied with the
government standard of grading wool which clears away one
of the difficulties encountered ih the past in exporting to the
Mother Country. In shipping to England the Canadian wool
grower comes in contact with the Australian product, vast
quantities of which find their way into the textile centres
of the British Isles every year.
Notes of Industry
Construction of a 60-ton kraft paper mill at the mouth
of the Harrison River, British Columbia, costing approxi-
mately $3,000,000, will be commenced immediately by the
Harrison Lumber and Pulp Co., headed by Sir Douglas
Cameron, which was recently incorporated at $15,000,000.
It is the intention of the company to erect a paper and pulp
mill at Kitiman on one of the coast inlets.
One of the largest brick manufacturing firms in Toronto
has decided to operate its plant to the fullest capacity
throughout the winter, as the outlook is regarded as better
than it has been for many years. Extensive building pro-
grams will be proceeded with here next spring, the company
believes, and is preparing to have a full stock of brick to
meet the anticipated demand.
Power development, involving an expenditure roughly
estimated at $600,000 and providing electric current to more
than forty cities, towns, villages and rural municipalities in
January 21, 1921
THE MONETARY TIMES
ATLAS
Assurance Company Limited
Founded in the Reign of George III
Subscribed Capital
Capital Paid Up
Additional Funds
§11,000.000
1.320,000
24,720,180
The compau)' enjoys the highest reputation for prompt
and liberal settlement of claims and will be glad to receive
applications for Agencies from gentlemen in a position
to introduce business.
Head Office for Canada — 260 St. James St., Montreal
Ll^ ^ r^ O ^ GUARANTEE AND
^-' *^ *-' ^-^ *^ ACCIDENT COY.. l.imited
Head Office for Canada - Toronto
Employers' Uability, Elevator, Contract. Personal Accident. Fidelity
Guarantee, Internal Revenue, Sickness, Court Bonds,
Teams and Automobile.
AND FIRE INSURANCE
IT PAYS TO INSURE YOUR AUTOMOBILE
WITH
The Canadian Surety Company
Maximum Service.
Minimum Cost.
CANADIAN STRONG PROGRESSIVE
ffimt m^M'9J^&B:e<&m9im9
FIRE INSURANCE
AT TARIFF RATES
General Capital Sabacrihed
$500,000 Automobile
Insurance
'.-President
Sec -Treas.
Good Ope
lOth Floor, Electric Rtilwtj Chambers
igs for Live Agents
Palatine Insurance Company
LIMITED
OF LuM)Oi\, Ei\CLAM>
Capital Fully Paid - $1,000,000
Fire Premiums, 1919 3,957,650
Total Funds - 6,826,795
la addition to the above therclis the furl
Union Assurance Company. Limited.
r Gua
vhos
nds I
Head Office : — Canadian Branch
COMMERCIAL UNION BUILDING, MONTREAL
W. S. .TocLlno. ManaRer
Toronfo Office— 60 KING STREET WEST
Jones & Proctor Bros.. Li.mitfd. .Agents
inniiiiiiniiiininiiiiiiiiiiiiiiiiiiiii
I Automobile— 1 920"Season |
■
Policies to cover ANY or ALL motoring risks
ATTRACTIVE AGENCY CONTRACTS
British Empire Fire Underwriters
82-88 King Street East, Toronto
THE EMPLOYERS'
LIABILITY ASSURANCE CORPORATION
OF LONDON, ENG. LIMITED
ISSUES
Personal Accident Sickness
Employers' Liability Automobile
Workmen's Compensation Fidelity Guarantee
and Fire Insurance Policies
C. W. I. WOODLAND
General Manager for Canada and Newfoundland
Lewis Building.
MONTRKAL
JOHN JENKINS,
Fire Manager
Temple Bldg.
TORONTO
so
THE MONETARY TIMES
Volume 66.
Manitoba, may be uiulertaken by the Manitoba Power Com-
mission this year if applications ami tentative applications
received by the so^'f'nment are acted upon. J. M. Leamy,
power commissioner, has announced that the program for the
forthcoming year would be limited only by the initial financ-
ing provided by the legislature.
A representative of an English wood silk and other pulp
protlucts company was in Sarnia, Ont., recently, investigat-
ing the possibilities of this city, and although any definite
decision as to the establishment of a Canadian branch is
held in abeyance pending an improvement in business condi-
tions, it is intimated that the choice for a plant site rests
between Sarnia and another Ontario city, with Sarnia hold-
ing the advantage, due to facilities offered for securing an
ample supply of water required in the process.
The output of Winnipeg factories during 1920 is valued
at $120,000,000. and approximately $85,000,000 is invested in
Winnipeg industries, according to the statement made by D.
J. Dyson, chairman of the prairie division of the Canadian
Manufacturers' .Association.
.\bbey, Sask., will have among its industries a new fac-
tory where roller disc bearings will be manufactured. The
inventor and patentee of the new bearing, Mr. Fiefield, has
secured the niachinei-y and steel necessary to make a start at
his work. This plant is beginning in a small way, but it is
expected will develop before many months into a faii'ly large
factory employing a goodly number of hands.
The Mack Furnace Co., Ltd., recently incorporated with
a capital of $250,000, has secured a plant at Chatham, Ont.,
and will commence manufacturing.
NEW INCORPORATIONS
Dominion Steel Products, Ltd.. Brantford, $3,000,000—
Sesekinika Divide Mines, Ltd., Toronto, $.3,000,000— Cos-
grove Export Brewery Co., Ltd., Montreal, $1,000,000
THE following is a list of companies recently incorpor-
ated under Dominion charter, with the head office and
authorized capital: —
Godue Casket Manufacturing Co., Ltd., Sutton, $100,000;
Metropolitan Corp., Ltd., London, $500,000; C. C. Smith and
Co., Ltd., Montreal, $50,000; Federal Manufacturing Co.,
Ltd., Montreal, $49,000; Halt Fuel Savers, Ltd., Kitchener,
$500,000; Ottawa Axe and Tool Co., Ltd., Hull, Que., $100,-
000; .'Asbestos Crude and Fibre Mining Corp., Ltd., Mont-
real, $600,000; British Dominion Holding and Investment
Corp., Ltd., Toronto, $250,000; Doctor Cawsey's Veterinary
Remedies, Ltd., Regina, $100,000; Corporate Securities, Ltd.,
Montreal, $300,000; Lumsden Engineering and Transport
Co., Ltd., Toronto, $150,000; Reliance .Airless Wheel Co., of
Canada, Ltd., Montreal, $100,000; Evans-McBride, Ltd.,
Montreal, $50,000; Leeds Importing Co., Ltd., Montreal, $25,-
000; Quaker City Chemical Co., of Canada, Ltd., Hamilton,
$50,000; Cosgrove Export Brewery Co., Ltd., Montreal,
$1,000,000; Press Service Corporation, Ltd., Toronto, $250,-
000; New England Oil Corp., Ltd., Montreal, $10,000; Haw-
thorn Mills, Ltd., Carleton Place, $750,000; Dominion Steel
Products Co., Ltd., Brantford, $3,000,000.
Provincial Charters
The following is a list of companies recently incor-
porated under provincial charter: —
British Columbia. — Kameo Shingle Co., Ltd., Vancouver,
$50,000; Han-ison Lumber and Pulp Co., Ltd., Vancouver,
$150,000; St. Julien Co., Ltd., Vancouver, $600,000; Leader
Publishing Co., Ltd., Prince George. $10,000: Canadian
Tailoring Co., Ltd., Vancouver, $10,000; Weld, Maclaren and
Co., Ltd., Kelowna, $10,000; Regina Club. Lt;l., Vancouver,
$25,000; Ark Club, Ltd., Vancouver, $5,000; KorKer Shoe
Co. of B.C., Ltd., Vancouver, $50,000; Rainier Bottling
Works, Ltd., Vancouver. $30,000: British Columbia Japanese
Club, Ltd., Vancouver, $10,000; Hopkins Hamilton Seed Co.,
Ltd., Nanaimo, $25,000; Strand Buffet Co., Ltd., Vancouver,
$10,000.
Manitoba. — Farmers' Mutual Grain and Elevator Co.,
Ltd., Winnipeg, $250,000; North West Trading and Supply
Co., Ltd., Winnipeg, $5,000; John F. McGee Co., Ltd., Winni-
peg, $50,000.
Ontario. — MacLean Building Reports, Ltd., Toronto,
$200,000; Ontario Car Advertisers, Ltd., Toronto, $40,000; St.
Lawrence Steel and Wire Co., Gananoque, $500,000; Wood-
worker Publishing Co., Ltd., Toronto, $100,000; Cache Creek
Butter and Cheese Co., Ltd., Cadarette, $10,000; Glenburn
Farms, Ltd., Toronto, $250,000; Smith's Falls Malleable
Castings, Ltd., Smith's Falls, $750,000; Martin Coal "Co.,
Ltd., London, $30,000; Bluebird Fashion Shops, Ltd., Toronto,
$40,000; Northrop Strong Securities, Ltd., Toronto, $5,000,-
000; Sesekinika Divide Mines, Ltd., Toronto, $3,000,000;
Niagara Glass Co., Ltd., St. Catharines, $40,000; Dominion
Insurance Agencies, Ltd., Toronto, $40,000.
INSURANCE NOTES
The Merchants' Marine Insurance Co., Ltd., of London,
England, which recently obtained a Dominion license to
write fire and automobile insurance, has received a certificate
of registration from the province of Manitoba. John
Calverly is western fire manager.
Notice is given that Lloyd's Plate Glass Insurance Co.
has ceased to transact business in the province of Manitoba.
At the last session of the Manitoba legislature a hail in-
surance bill was enacted, providing for a system of municipal
hail insurance. The act required that at least thirty-five
municipalities pass the bill before it becomes effective but
according to the vote taken recently the act cannot become
law.
Prospective abandonment of the group insurance pro-
posals, by which employees of Manitoba government are to
receive free life insurance, is reported. Difficulty in obtain-
ing a blanket policy low enough in rate to warrant adoption
by the government is said to be the reason for the sugges-
tion. According to a member of the civil service, the gov-
ernment, after collecting complete data as to the employees
who would benefit, called for tenders from insurance com-
panies willing to accept the business. Four policies are said
to have been tendered. None was acceptable, it is stated,
and an effort was made to create a satisfactory policy com-
bining the best features of each. This, submitted to the
insurance companies, proved equally unsatisfactory, accord-
ing to reports, and the matter now is at a deadlock.
The Winnipeg Paint and Glass Co. has made arrange-
ments with the Canada Life Assurance Co. for insuring all
its employees, under the group plan, who have served with
them one year or more. The amount of the policy issued
will depend on the length of the service of the employees.
All employees of the Imperial Tobacco Co., of St. Johns,
Nfld., have been insured under the group plan in the Sun
Life Assurance Co. This is the second contract closed by
the Sun Life in Newfoundland.
J. R. Grant has succeeded John Sturrock as branch man-
ager for the Railway Passenger Assurance Co. in Winnipeg.
COBALT ORE SHIPMENTS
The following are the shipments of ore, in pounds, from
Cobalt Station for the week ended January 14th, 1921: —
Coniagas Mine, 125,827; total, 125,82'?. The total since
January 1 is 288,311 pounds, or 144.1 tons.
MacDougall and MacDougal] is the name of the new
Montreal stock brokerage partnership which was announced
in these columns recently. The company has commenced
business in temporary offices at 42 Guardian Building, 102
St. James Street.
January 21, 1921
THE MONETARY TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE, $133,000,000.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL AP-
PROVED PLANS
HEAD OFFICE
TORONTO
" Solid as the Continent "
Throughout its entire history the North American
has lived up to its motto '* Solid as the Continent.'* Insur
in Force, Assets and Net Surplus all show a steady and
manent increase each year. To-day the Financial pos
of the Company is unexcelled.
1921 promises to be bigger and better thai, any
heretofore. If you are looking for a new connection, \
us. We take our agents into our confidence and offer
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID AS THE CONTINENT '
HEAD OFFICE TORONTO
Life
ance
per-
itite
you
Important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE - WINNIPEC. MAN.
Assurances. New and Revived - • $1,211,447.00
Premiums on same . . . . 43,890.00
Assurances in Force - . - - 3.458,939.00
Total Premium Income - - 109,586.03
rolicy Reserves - . - - - 211,497.00
Admitted Assets 296.430.62
Average Policy - - - - 2.237,50
C^ollerted in cash per 81,000 insurance in force 31.75
For particulars of a good agency apply to
ADAM REID, Managing Director Winnipeg.
Insuring the Motive Power
Theohject of Business Insurance is to insure the 'brains • of an orean-
ization. Knowledge, combined with administrative ability, is invaluable.
Every busine^s. large or small, depends primarily upon one or more
experienced leaders. The death of any one of them would result ma heavy
financial loss. There would be heavy going until the deceased of^cial
waE replaced by someone of equal ability. The possession of a policy of
insurance payable to the firm in the event of the death of such a leader
is essential, .loint policies payable on the death of the Hrst partner, or
(preferably) separate policies on the lives of the individual partners in
favor of the survivors are issued by The .Mutual Life of Canada. It will
be the object of the Company to adapt each Business Policy to the parti-
cular requirements of the insuring firm. Consult our representative.
He will be glad to advise you regarding business insurance.
The Mutual Life Assurance Co. of Canada
Waterloo
Ontario
CO-OPERATIVE SERVICE
'rO Pohcyhiiluers between the Company and the Agents is the secret of our
success. Every representative is given the utmost assistance, but he
must look after our clients' interests. During the last 'il years Tke Coatiaentil
Life has built an enviable reputation tor prompt payment of claims.
Write for booklet. "»ur Brsl Atlvrrtlnem," Kor Managerspositions in On-
tario, apply will, references, stating experience, etc.. to 8. 8. WEATEK.
Ea4li-rn siiiii'rliiK'iiilrni, hi llend onirr
THE CONTINENTAL LIFE INSURANCE CO.
Head Office TORONTO. ONTARIO
ENDOWMENTS AT LIFE RATES
ISSUED ONLY BY
THE LONDON LIFE INSURANCE CO.
Head Office ... LONDON, CANADA
Profit Results in this Company 70°, better than Eslimates.
POLICIES 'GOOD AS GOLD."
INSURANCE BY MAIL
If you require information regarding Life Insurance but
for any reason find it inconvenient to see an Agent,
you can complete the matter entirely by mail.
Send your name, address, and date of birth to The
Great-West Life, when interesting details of a suitable
policy will be sent by return of mail.
* Remember — to "put off" Life Insurance merely
means extra cost when you do insure -with a big
risk in the meantime.
THE GREAT-WEST LIFE ASSURANCE COMPANY
DEPr. " K"
HEAD OFFICE WINNIPEG
Ask for a 1921 Desk Calendar —free on request
The Western Empire
Life Assurance Company
Head Office: 701 Somerset Building, Winnipeg, Mao.
SASKATOON
Branch Oppicrs
CALGARY EDMONTON VANCOUVER
Queensland Insurance Co. Limited
of Sydney. N.S.'W.
Capital Paid Up $1,750,000 Assets $4,015,811
■iitmit Wouttd i» Umrtprtunttd Districts
Montreal Agencies Limited
Montreal
CROWN LIFE
■Vl 7E have a policy to suit every insurance need — up-
' ' to-date, liberal in its provisions. Participating
Folicyholders in th; Crown Life are entitled to 95% of
all profits earned by the Company in addition to the
guarantees contained in their Policies.
Tht Crown Lift is a tood Company to insure in or to reprtsent
Grown Life Insurance Go., Toronto
nttd in unrepresented districts
52
THK MONETARY TIMES
Volume 6P
News of Municipal Finance
Biil Incorporating the Metropolitan Commission of Montreal Will be Opposed — Calgary's
Tax Collections Ahead of Last Year— Vancouver Finances in Better Shape, States
Finance Chairman — Winnipeg Will Again Apply to Legislature for Civic Income Tax
THERE will, it is expected, be a good deal of controversy
in the Quebec legislature before the bill incorporating
the Metropolitan Commission of the Island of Montreal is
either passed or thrown out. The commission, as was fully
explained in these columns last week, would have jurisdiction
over all the municipalities on the Island of Montreal, as well
as the city of Montreal, if created. On the one hand, there
are the larger municipalities of the Island, who will insist
on a maintenance of their independent existence, while the
city of Montreal and a number of the smaller municipalities
on the other will endeavor to have all the municipalities
forcibly annexed to the city.
Just how the larger municipalities, such as Westmount,
Outremont. Montreal West, etc., feel about the subject can
be seen in the resolution which was passed by the West-
mount Municipal Association at a meeting last week. The
resolution reads as follows: —
"That the Westmount Municipal Association, in special
meeting assembled, after having given due consideration to
the draft of an act to incorporate the Metropolitan Commis-
sion of the Island of Montreal, is of opinion that it would
be prejudicial to the interests of the city of Westmount and
to other municipalities if such an act should be passed by
the legislature of the province of Quebec, and that it solemnly
protests against any such action, and it would urge the legis-
lators of Quebec to defeat such measure should it be intro-
duced in the legislature.
"It is the conviction of the association that the proposed
consolidation of the indebtedness of all the municipalities in
the Island of Montreal is neither equitable nor just, as it
would mean the penalizing of the municipalities which have
carefully administered their finances for the benefit of such
as have acted in an injudicious manner.
"The association draws special attention to the fact that
the taking from the municipalities of the moneys and invest-
ments made for sinking funds would be a serious breach of
contract with the bondholders who had purchased bonds with
the assurance that the sinking funds would be carefully
guarded and protected, and in the case of the city of West-
mount such funds are protected by a sinking fund commission
appointed under a by-law approved of by the electors."
Winnipeg, Man. — Although two former attempts have
failed, the city will again approach the legislature for right
to impose a civic income tax.
Langley, B.C. — The municipality ended 1920 with no
bonded indebtedness, all current debts paid and a balance in
the bank. Expenditures were some $25,000 greater than in
1919, but an increase in taxation took care of the excess.
Kitchener, Ont. — The auditor's report of the city treas-
urer's statement for last year shows a surplus of $13,02.").
This is considerably higher than was expected when the esti-
mates were struck at 30% mills The amount of tax arrears
out of a total of about $550,000 is reported to be $8,184. It
is confidently expected that the tax rate can be reduced this
year owing to the increased assessment.
Regina, Sask. — Collections of current taxes at the city
hall during 1920 were not quite so good as the preceding
year, although the difference in proportion of the le\n,f col-
lected in comparing the two years was very small. Last year,
out of a total levy of $1,749,092, the officials gathered in
$1,401,286, leaving $348,706 to go into arrears on January 1.
The penalty on this amount of arrearages at 8 per cent, will,
when collected, net the city an additional sum of $27,896.
While the collection of current taxes in 1920 represented
80.12 per cent, of the total levy, the percentage of current
taxes collected the preceding year was 80.96. The total
amount of current taxes collected in 1919 was $1,332,606 out
of a total levy of $1,645,832.
Vancouver, B.C. — Aid. James Ramsay, retiring civic
finance chairman, in reviewing the financial status of the
city before the council last week, said: —
"I consider the city's financial situation much better than
it was at this time last year. In proof of this I would point
to the fact that- for the first time for six years the city has
completed the year without having to resort to an overdraft
from its bankers. I believe the heavy receipts which the city
now secures from civic license fees and half-yearly water-
works receipts, which will be coming in soon, will enable the
city to finance payroll demands until the incaming council
secures the usual loan in anticipation of this year's taxes.
At the same time, I would advise a eontinoance of the policy
of strict civic economy and caution in financial affairs.
"For this satisfactory condition of affairs the city is to
a large extent obligated to the property owners, who came
forward and paid up both current and arrears of taxes in
generous amounts last fall. I regard the broadening of taxa-
tion, however, as still the most important problem that con-
fronts the new council, and I believe that Dr. Brittain's report
will go a long way towards uniting the many divided factions
on this question, so that the civic delegation that will ask new
taxation powers from the legislature will present a united
front. At present it does not admit of much argument that
the taxation burden is too heavy on the few and not broad
enough to afford the city sufficient revenue to meet the in-
creasing costs of operation."
Calgary, Alta. — Taxes, current and arrears, collected by
the city during the year 1920 totalled $3,745,966, according
to a first forecast of the annual statistics prepared by J. H.
Mercer, city treasui-er. The total amount of such taxes col-
lected in 1919 was $3,210,000, so that the collection of current
taxes and arrears for 1920 were more than half a million
greater than in the preceding year. Of the total of $3,745,966
of current and arrears of taxes collected in 1920, $2,919,841
were current taxes and $826,125 were arrears. This payment
of arrears of taxes was approximately 20 per cent, of the
total owing, and compai-es with approximately 18% per cent,
of the total amount of arrears collected in 1919. In the same
manner, the payment of current taxes totalling $2,919,841 in
1920 was approximately 71 per cent, of the total owing, as
compared to collection of approximately 69% per cent, of
the current taxes in 1919.
Temporary estimates for the first four months of the
year 1921 for the operation of Calgary's public utilities total
$814,700. On this basis, the year's operations of all utilities
would cost $2,444,100. The estimates are based on the actual
expenditures for the first four months of 1920. Total esti-
mates for other departments of the city are fixed at $858,100.
and the estimates for the public utilities added to these bring
the total city temporary estimates for the first four months
of 1921 to $1,672,800.
Unless the Alberta government agrees to put through
some legislation, Calgary will be faced with the necessity of
paying possibly a quarter of a million dollars in acquiring
titles to the various properties coming into its possession
through the tax sales. As a result, the legal department of
the city is preparing to make application to the legislature
for an amendment to existing legislation to enable the city
to acquire title en bloc to large parcels of property coming
in at tax sales. Under the existing law the very first step
in acquiring title to such property when the transfer is made
costs $3 per lot or parcel for property under $500 in value
and $4 for property over the $500 mark. In addition, there
are several other charges which probably will make the cost
mount up to $5 or $6 per pai'cel. In many instances the cost
of acquiring title would be equivalent to or more than the
actual value of the property itself.
January 21, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
||OIJSSERWK>Dv°C>Mi»NY
INVESTMENT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
OSLER, HAMMOND & NANTON
WINNIPEG
Stock Brokers and Financial Agents
Insurance Mortgage Loans
Real Estate
NEW ISSUE
City of St. Catharines
6% COUPON BONDS
Maturities : 1922-1926
Principal and semi-annual interest (April 20
and October 20) payable in Toronto or St.
Catharines; denomination $500 and .$1,000.
PRICE TO YIELD 6.40%
Harris, Forbes & Company
rNCORPORATED
C. P. R. Building 21 St. John Stre«t
TORONTO MONTREAL
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur BIdg., WINNIPEG, Canada
Members of Winnipeg Real Estate Exchange. Winnipeg Stock Exchange
c.
H.
BURGESS & CO.
Government and
Municipal Bonds
14
King Street East
Toronto
WINSLOW & COMPANY
Stock and Bond Brokers
GOVERNMENT AND
MUNICIPAL BONDS
INDUSTRIAL SECURITIES
300 Nanton Building, Winnipeg
Exceptional —
— both for safety of principal and surety of
return is this
7% Canadian Industrial Bond
with a bonus of Common Slock payable in New
York funds.
Ask us for full particulars
R. M. HEFFERNAN & CO., Limited
L\VESTME.\T BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
THE MONETARY TIMES
Volume 66.
Government and Municipal Bond Market
Lifting of Securities Embargo Has Little or No Effect— Alberta Takes Canadian Bid on Two
Million Issue— Lethbridge Irrigation Bonds May Sell on Present Merits— Paris Loan to be
Made Here on 6 >^ Per Cent. Basis— Saskatchewan Calls for Tenders— Victory Bonds Easier
ANNOUNCEMENT of the removal of the so-called securi-
ties embargo had little or no effect on the general bond
market this week. As to the future, it is not expected that
there will be any noticeable disturbance as a result of the
i-emoval of the restrictions. For one thing, the sentiment
has greatly improved. Then again the recent improvement
in sterling exchange will also have a tendency to making
the sale of their holdings less attractive to the owners
abroad. With sterling around 4.27 in Montreal, would, in
banking opinion, tend to obviate any inclination on the part
of overseas holders of Canadian securities to liquidate them.
It is not expected in any event that liquidation could go
much further, in the dollar securities at least. Canada has
already absorbed a large amount of its own issues held
abroad, and the supply is very much smaller than it was
originally.
Victory Bonds Easier
Victory bonds were a little easier this week, but the
movement was not attributed to the lifting of the embargo,
but rather the result of general conditions, as slight reduc-
tions in prices were shown previous to January 17. The
following are comparative prices of all issues: —
Control,
price.
1922 98
1927 97
1937 98
1923 98
1933 96V2
1924 97
1934 93
Two weeks
end Jan. 12, '21.
High. Low.
This week.
High. Low.
98%
98
99 y2
97%
98 Vo
97%
961/8
97
95ys
961/2
95
95
9414
923/s
98%
9714
981/8
91 Vz
99%
99
97%
96 ¥2
98
95%
97
96
95%
95
Alberta Takes Canadian Bid
Tenders closed this week on Alberta's $2,000,000 bond
issue, and the province accepted the bid for bonds payable
in Canada only, paying 6.39 per cent, for its money. The
offer for bonds payable in New York was on a 5.98 per cent,
basis, but nevertheless it is considered that the provincial
treasurer was wise in taking the action that he did.
Trustees of the Lethbridge Northern Irrigation District
have been unable to do anything with regard to further
guaranteeing of their proposed bond issue on account of the
illness of Premier Stewart, but it is stated that a San
Francisco bond house is sending a representative to Leth-
bridge shortly to look over the situation, and that some
Portland houses are also interested. Chairman Crofts, of
the trustee board, is very hopeful that construction work
will be started this year. .
The new issue of 6 per cent.. City of Paris bonds amount-
ing to $4,000,000, particulars of which were given in these
columns last week, will be offered to the Canadian public at
96.50 to yield 6% per cent. The offering will be made by a
syndicate composed of the Municipal Debenture Corporation,
Ltd., Versailles; Vidricaire, Boul&is, Ltd., Beaubien and Co.,
Credit Canadien, Inc. The first instalment of the $20,000,000
loan authorized by the city of Paris for placement in Canada
was sold recently by the Municipal Debenture Corporation,
and was for $2,000,000.
Expect Heavy Borrowing in U. S.
A dispatch from New York states that there will be a
large aggregate of foreign financing in America this year,
the volume and time of offering of securities of this char-
acter being mainly dependent upon the- development of fav-
orable investment conditions. There are few of the govern-
ments of Europe which are not anxious to obtain accommo-
dations there, while most of the South American countries
following the slump in their exchanges and as a consequence
of current financial and economic distress are looking to the
United States for aid. It is also on the schedule that China
should obtain a loan from the international consortium, a
large part of the actual funds for which will, it is anticipated,
be raised there.
Canada is expected to be a rather heavy borrower in the
United States, although it seems improbable that the Do-
minion government as such will figure largely. Various pro-
vincial and municipal governments, however, have maturi-
ties approaching either in that market, or abroad, the bulk
of which will, it is anticipated, be cared for by refinancing,
and the National Railways, which are government-owned,
will also seek accommodation on the other side of the border,
according to the present outlook.
Coming Offerings
The following is a list of debentures offered
particulars of which have been given in this or
issues: —
Borrower.
Kamsack, Sask !
Merritton, Ont
Brampton, Ont.
Kenogami, Que
Watford, Ont
Saskatchewan Prov.
Gladstone, Man
Regina P.S.D., Sask.
Brockville, Ont
Amount. Rate %. Maturity.
! 13,400 7 15-instal.
30,000 6 20-instal.
61,139 6&61/2 Various
80,000
52,000
2,000,000
11,000
250,000
143,964
6
6 1/2
6
6
6 1/2
6
5-years
30-instal.
15-years
20-years
30-years
10-instal.
for sale,
previous
Tenders
close.
Jan. 24
Jan. 24
Jan. 25
Jan. 25
Jan. 27
Feb. 1
Feb. 1
Feb. 4
Brockville, Ont. — Tenders will be received until February
4, 1921, for the purchase of $143,964 6 per cent. 10-instal-
ment debentures.
Brampton, Ont.- — Tenders are being called up till Janu-
ary 24, 1921, on $5,225.21 6 per cent. 20 and 30-year deben-
tures, and $55,913.72 6% per cent. 10 and 20-year debentures.
C. M. Corkett, town clerk.
Merritton, Ont. — Tenders will be received until January
24, 1921, for the purchase of $30,000 6 per cent, instalment
debentures maturing from 1922 to 1941. The proceeds of
the issue will be used for school purposes. R. Clark, town
clerk.
Watford, Ont. — The village is calling for tenders up till
January 25, 1921, for the purchase of $52,000 61/2 per cent.,
30-instalment debentures, the proceeds of which issue will be
used for installing a water works system. W. S. Fuller,
clerk.
Saskatchewan. — The province is asking for tenders up
till January 27, 1921, for the purchase of $2,000,000 6 per
cent. 15-year bonds. Alternative bids for securities with
and without American payment. Tender must be accom-
panied by marked cheque for $20,000.
Orillia, Ont. — Through A. B. Thompson, a local dealer,
the town is offering $285,000 debentures to its citizens. Mr.
Thompson has been given an option on the issue and is
offering the bonds to yield 6% per cent. The bonds are guar-
anteed by the county of Simcoe and run from one to twenty
years.
Kenora, Ont.^ — The towTi has again extended the date on
which tenders will be received for its debentures until Feb-
ruary 15, 1921: The debentures, which total $82,320.25, are
January 21, 1921
THE MONETARY TIMES
Reinvest
Your January Funds
Bond interest and dividends due Janu-
ary I St, as well as payments of principal
due on that day, will be best employed
when invested in Canadian Government
and Municipal Bonds.
These bonds afford unquestioned secur-
ity, and no investment permits of more
convenient collection of interest.
At existing prices, from 6.20% to 7% inter-
est can be obtained from these bonds.
Write for a list.
Wood, Gundy & Company
Canadian Pacific Rail
Toronto
Montreal Toronto
Winnipeg
Building
Saskatoon
New York
London, F.ng.
H^^^gy^/AgjaJ^^
-^
/ IHYESTHtNT- SERVICE \^
S-»^^/N»t^/-!.M»-»^
i
Pulp and Paper
Prices in 1921
Why the Canadian pulp and paper
industry is basically sound and why
holders of Canadian pulp and paper
securities can look forward with con-
fidence to 1921 is shown in this
month's Investment Items.
The probable trend of prices for Canada's
pulp and paper products is discussed.
Every Canadian investor should read the
current number.
A copy is yours for the asking.
Royal Securities
^ ^CORPORATION
LIMITED
MONTREAL
TORONTO HALIFAX ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. Eng.
31
gl I
W L McKINNON
1)i:a\ h pettes
We Buy and Sell
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Covernmcnl and Municipal Bonds
McKINNON BUILDING -:• TORONTO
Telephone Adelaide 3870
Bonds For A
Business Reserve
Are the Most Stable Investments
Mercantile and manufacturing firms are pur-
chasing Government and Municipal bonds
and using them for a business reserve.
High-grade Government and Municipal
Bonds do not fluctuate in price to any
material extent.
By selecting maturities to suit your business
requirements your funds will be available
when needed.
We shall be pleased to submit particulars of
some high-grade securities suitable for this
purpose yielding from
6.25% to 7.25%
W. A. MACKENZIE & CO.
Covcrnmcnl alio Municipal BonJ^
42 King St. West
TORONTO -:- CANADA
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THE MONETARY TIMES
Volume 66.
as follows: $10,000 7 per cent, lo-instalnieiits, for electric
utility; $20,000 7 per cent. 20-year, for waterworks; $13,564.87
6V2 per cent. ;!3-year, for consolidation of debt; $6,000 7 per
cent. 10-year, for electric; $25,000 7 per cent. 20-instalments,
for public improvement; $7,755.38 7 per cent. 20-instalments,
for local improvement. F. J. Hooper, clerk and treasurer.
Debenture Notes
Orillia, Ont. — Ratepayers have passed a by-law authoriz-
ing the erecting of a hospital costing $210,000.
Indian Head, Sask. — The council of the rural munici-
pality has passed a by-law authorizing the borrowing of
$30,000 for the ye&r's expenses.
Edmonton, Alta. — The failure of Morris Bros., the Port-
land bond house, and the resulting inability to take up
$1,595,600 of the city's bonds, has placed the city in an em-
b&rrassing and very unpleasant position. Legal proceedings
will involve a delay of probably six weeks before the case
as to the possession of the securities opens in Portland.
Both City Solicitor Brown and City Ti-easurer Barnhouse
have returned from Portland, and have made reports to
Mayor Duggan of recent developments in the financial tangle
which is so vital to the city. The chief trouble has been
caused by the First National Bank filing an interpleader in
the state courts. This has the effect of the bank declining
to give up the bonds to any of the claimants without formal
order to do so. This precaution has been taken by the
bank to protect itself against the possibility of future legal
actions.
It is stated that the liquidators of the defunct company
are using all possible means to take up the remainder of the
bonds at Portland. If they succeed in this purpose, there
will be a profit to them of possibly $100,000, which would
materially augment tVie company's assets. In the meantime
the city's interests are fully protected against loss, and
arrangements have been made with the city's bankers for
funds. Nevertheless, the situation is a perplexing one, and
a considerable amount of expense and trouble will have to be
borne before the case is finally settled.
Bond Sales
Dartmouth, N.S. — The Royal Securities Corporation has
purchased $100,000 6 per cent. 20-year debentures at a price
of 95.63, which is on about a 6.35 per cent, basis.
Saskatchewan. — The following is a list of debentures re-
ported sold by the Local Government Board from December
25, 1920, to January 8, 1921:—
School Districts.— Laird, $15,000 12-years, to local in-
vestors; Sugar Hill, $4,500 10-years, to Sturgeon Lake
Lumber Co., Prince Albert; Silberfiel, $800 5-years, Mutual
Life Assurance Co.; Columbia, $3,000 10-years, Waterman-
Waterbury Co.; Milner, $2,000 10-years, R. S. Henry,
Rosthern; Robert, $3,000 15-years, Regina Public School
sinking fund; Gauthier, $4,000 15-years, Walter Martin,
Regina; Downey Lake, $3,500 10-years, Waterman-Water-
bury Co.; South Loverna, $2,000 10-years, Dr. Hunter,
Hoosier; Moose Jaw, $18,500 10-years, local investors; Inver-
may, $12,500 20-years, J. A. Thompson; Bright, $2,.500 10-
years, Regina public school sinking fund trustees. All 8
per cent, debentures.
Rural Telephones. — 15-year 8 per cent, debentures:
Invermay, $20,500, R. O. Berwick, Regina; Yarbo, $4,350, J.
L McVicar, Ltd., Regina; Heron, $600, Stewart Bros., Mary-
field; Viscount, $11„500, W. D. Craig. Regina; Glen Adelaide,
$2,800, S. L. Piatt, Regina; Hohenloe, .$9,500, and Leslie,
$14,800, R. O. Berwick, Regina; Bromhead South, $4,000, W.
H. Houston, Regina; Hyas, $12,000, G. W. Brown, Saskatoon.
Alberta. — A syndicate composed of Wood, Gundy and
Co., A. Jc.rvis and Co. and A. E. Ames and Co. have pur-
chased $2,000,000 6 per cent. 15-year bonds of the province at
a price of 96.21, at which rate the province pays 6.39 per
cent, for its money. Alternative tenders were asked for 15-
year bonds payable in Canada only, and 10-year bonds pay-
able in New York. Bids were received as follow.-;: —
Fifteen-ycM- bonds payable in Canada only.
Wood, Gundy and Co., A. Jarvis and Co. and A. E.
Ames and Co 96.21
United Financial Corp., Ltd 95.40
Dominion Securities Corp., Harris, Forbes and Co.
and National City Co 95.147
W. A. Mackenzie and Co., R. A. Daly and Co. and
Hanson Bros 93.28
Ten-year bonds paya-ble in New York.
A. Jarvis and Co., First National Co., Halsey, Stuart
and Co. and A. E. Ames and Co 101.11
Harris, Forbes and Co., National City Co. and Drake
Ballard and Co 99.544
Miller r..nd Co., Housser, Wood and Co., Brandon, Gor-
don and Waddell 99.51
Wood, Gundy and Co 99.29
Dominion Securities Corp. and Dillon, Read and Co. 98.97
Continental and Commercial Trust Co., Blythe, Witter
and Co., W. A. Mackenzie and Co. and R. A.
Daly and Co 98.83
United Financial Corp., Ltd 97.73
Niagara Falls, Ont. — An issue of $58,806.71 5 per cent.
10-instalment debentures has been purchased by the United
Financial Corporation, Ltd., at a price of 91.87, which is on
about C' 6.80 per cent, basis. The proceeds of the issue will
be used for paving purposes. R. C. Matthews and Co. sub-
mitted a bid of 91.06, while Dyment, Anderson and Co.
offered 91.03.
St. Catharines, Ont. — Harris, Forbes and Co. and C. H.
Burgess and Co. have purchased $184,000 6 per cent, local
improvement debentures, maturing from one to six years,
at a price of 97.37, which is on a b£>.-5is of about 6.85 per
cent. Other tenders received were:- — •
A. E. Ames and Co , 97.091
Wood, Gundy and Co ' 96.63
A. Jarvis and Co 96.30
York Township, Ont. — The municipality has disposed of
$262,000 6 per cent. 20 and 25-instalment school and water-
works debentures to the United Financial Corporation, Ltd.,
at a price of 96.22, which is on about a 6.40 per cent, b&sis.
Tenders received were as follows: —
United Financial Corporation, Ltd 96.22
Wood, Gundy and Co 96.09
A. E. Ames and Co. and the Canadian Bank
of Commerce 95.86
A. Jarvis and Co 95.402
Dominion Securities Corp 95.147
R. C. Matthews and Co 95.07
Harris, Forbes and Co., Inc 94.347
MacNeill, Graham and Co 94.03
In addition bids weie submitted by A. Jarvis and Co..
Housser, Wood and Co., and the Canadian Debentures Corp-
oration for separate blocks.
Barton Township, Ont. — W. L. McKinnon and Co. have
been awarded $23,743.55 6 per cent. 5, 10 and 20-year deben-
tures, at a price of 97.305, which me&ns that the munici-
pality would pay about 6.35 per cent, for its money. Many
tenders were received as follows: —
W. L. McKinnon and Co 97.305
Canada Bond Corp 96.83
C. H. Burgess and Co 96.17
Brent, Noxon and Co 96.11
Wood, Gundy and Co 96.07
Harris, Forbes and Co., Inc 95.877
Nesbitt, Thomson and Co 95.81
R. C. Matthews and Co 95.733
MacNeill, Graham and Co 95.73
Canadian Debentures Corp 95.67
Turner, Spragge and Co 95.43
Dyment, Anderson and Co., bid 96.07 for the five-year
bonds, 95.27 for the ten-year and 94.17 for the twenty-year
securities.
January 21, 1921
THE MONETARY TIMES
Government
Municipal Corporation
Bonds
Bought and Sold
Coirespondence Invited
Eastern Securities Company, Limited
ST. JOHN, N.B. HALIFAX, N.S.
Moose Jaw, Saskatchewan
STOCKS AND BONDS
INSURANCE
FARM LANDS AND PROPERTY MANAGERS
KERN AGENCIES
LIMITED
Private Wires to WINNIPEG, CHICAGC, TORONTO.
MONTREAL AND NEW YORK
Western Municipal & School
Debentures
TO YIELD * 2
6%
71%
THE BOND AND DEBENTURE CORPORATION
OF CANADA. LIMITED
CORRESPONDENCE
INVITED
UNION TRUST BUILDING
WINNIPEG
Northwestern Mutual Fire Association
SEATTLE, WASH.
Head Office for Canada, Hamillon, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost. All Policies dividend paying
NORMAN S. JONES. Manager R. J. MAHONV Asst M;in.iBer
The Standard Agencies, Limited
Head Office
CAl.CJARV, ALBERTA
Money to Loan on Improved Farm Lands and City Properties
in Western Canada.
A. J. SCOTr. Gen. Manacer
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I BOND ISSUES
I SHOULD HAVE MORE THAN
I LOCAL ADVERTISING
B Reach the important investment deal-
J ers throughout Canada and the United
g States, by inviting tenders to purchase
■ through
I THE MONETARY TIMES
I OF CANADA
% The rate for this class of advertising is
I very moderate when the character of
B our clientele is taken into account.
B Let us be the connecting link between
B your municipality and the principal
■ individual and institutional bond
B buyers throughout Canada and the
I United States.
I The Monetary Times of Canada
I TORONTO
dlllllllllllllilllllllllllllllllilllllllllilllillllillllllllllllillllllllllll
WINNIPEG
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ACCOUNT BOOKS
LoosK l^EAF Ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cable Address. Topeco Western L'n. and A.BC.Sth edition
CALGARY, CANADA
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C H VI.ACALLAY
J. P. NICOLLS. Notary Ht.ljlii
58
THE MONETARY TIMES
Volume 66.
Corporation Securities Market
Less Activity on the Stock Exchanges — Bank Issues Command Attention —
Grand Trunk Equipment Trust Certificates— Maritime Telegraph Bonds Sold
THE stock markets, both in Montreal and Toronto, were
less active this week and inclined to be reactionary. At
the close on January 19 prices seemed to be holding up fairly
well, but a K'Uince over the lists shows a number of net
losses. The removal of the securities embargo was slijihtly
effective, particularly to those issues which are held abroad,
but the easiness of the markets as a whole is merely a reflec-
tion of the general conditions prevailing. The business situa-
tion at present is bare of new developments, and bull traders
on the exchanges find very little ground to work upon. Never-
theless, some stocks are moving up, among which utilities
are prominent. Papers are still in the background, although
the past few days have seen a moderate improvement in these
issues.
Bank stocks commanded the most attention dui-ing the
past week. Nova Scotia, Standard and Royal gave good ex-
hibitions of strength, while Merchants moved down. Com-
merce made a spectacular advance of fourteen points, but
lost the greater part of this before the close. Union was one
of those issues which felt the effects of the removal of the
embargo, but after the first preliminary liquidation of the
shares held in Great Britain, which carried this security down
several points, a firmer feeling prevailed and the stock closed
with a fractional loss for the week.
Ti'ading figures show that there was less activity. The
turnover of listed stocks in Montreal was 48,572, as com-
pared with 66,497 in the previous week, while the turnover
in Toronto of listed shares was 14,575, as against 18,790 pre-
viously. Bonds changed hands on the Montreal exchange to
the extent of $1,449,290, compared with $2,556,700 last week,
while the Toronto figures were $1,801,500 and $2,661,650,
respectively.
Fifteen-year equipment trust certificates of the Grand
Trunk Railway have been disposed of by Dillon, Read and
Company and associates to the extent of $12,000,000 in the
United States. The secui'ities cannot be called before ma-
turity, but their retirement is pi-ovided for by semi-annual
sinking fund payments of $400,000, sufficient to cover the
entii'e principal during the life of the issue. Sinking fund
payments must be devoted to the purchase of certificates up
to par. Balances of the sinking fund payments not so used
up in any six months must then be devoted to the purchase
either of certificates of this issue at the market or of Cana-
dian government securities maturing before the maturity
date of the certificates.
Grand Trunk Railway is now a part of the Canadian
National Railways, and under the raih'oad law of Canada
rentals payable for the use of the equipment covered by the
lien of these certificates, including interest and instalments
of principal, rank as a working expenditure of the railways
ahead of the claims of mortgage bondholders on the earnings
of the road. The certificates are thus practically guaranteed
by the Canadian Government.
The coupon rate of interest is 6% per cent., and the offer-
ing price of 95.40 represents an interest yield of 7 per cent.
Associated with Dillon, Read and Co. in the offering were
National City Co., Blair and Co., Bankers Trust Co., Guar-
anty Trust Co., Lee, Higginson and Co., Continental and Com-
merical Trust and Savings Bank of Chicago.
New Offerings
A considerable portion of the 12,786 shares of the Con-
sumers' Gas Company, of Toronto, was taken up jointly by
two financial houses, viz., Osier and Hammond and the United
Financial Corporation, Ltd., and the shares, which have a par
value of $50, were sold to the Toronto public to yield 8 per
cent. At the rate of the present dividend (10 per cent, per
annum) the stock would bring a price of $62.50 per share.
Harris, Forbes and Co., Inc., and the Royal Securities
Corporation have disposed of $500,000 7 per cent, refunding
mortgage gold bonds of the Maritime Telegraph and Tele-
phone Co., Ltd., at a price of 97.50, to yield 7.25 per cent.
The Maritime Telegraph owns and operates, without compe-
tition, the telephone system in the province of Nova Scotia
and controls the telephone business in Prince Edward Island.
Its lines connect with the New Brunswick Telephone Com-
pany's system and it has other connections under favorable
agreements for long distance business. The total population
served is considerably more than 500,000. Net earnings of
the company for the year ended November, 1920, were $332,-
708, or more than double the annual bond interest charges.
The book value of the physical assets of the company is over
$5,000,000, or twice the amount of bonds outstanding, in-
cluding this issue.
The Dominion government has authorized the L. R. Steel
Co., Ltd., to increase its capitalization from $2,000,000 to
$8,000,000 by the issue of 40,000 preference shares of $100
each and 20,000 shares of common stock of $100 each.
The Metallic Roofing Company of Canada, Ltd., Toronto,
has been authorized by the Dominion government to increase
its capital from $200,000 to $1,000,000 by the issue of 1,600
shares of $500 each.
A circular has been mailed to shareholders of the Windsor
Hotel Company enclosing a form of option in favor of the
Crown Trust Company or its nominee, signed by the directors
of the hotel and recommended by them. The form reads, in
part: "It is a condition of the exercise of this option that
the Crown Trust Company or its nominee shall purchase the
shares of all other shareholders of the Windsor Hotel Com-
pany of Montreal who may desire to sell the same at the
price of $175 a share."
All payments are to be made in Montreal funds. The
form further states that the regular quarterly dividend of
11/2 per cent, may be declared and paid until the present
option has been exercised, provided that the next quarterly
dividend shall be payable March 1 to shareholders of record
Februarv 24.
UNLISTED SECURITIES
:10ns furnished to The Mo
, & Co.. Toronti
Bid
Alta. Pac. Grain... com.
130
pref.
75
Ashdown Hardware 5's.
83
British Amer. Assurance
8. ■2.5
Burns, P. 1st Mtge. 6s.
90
Can. Machinery . . . com.
n
Canada Mortgage
65
Can. Oil com.
64
•■ ptd.
Can. Westinghouse
101
Can. Woollens com.
pref
63
CockshuttP:o\v7%pref.
.'54 .
CoUingwoodShipb'dg.B's
HO
Crown Life Insurance...
74
Cuban Can. Sugar, com.
Davies W^illiam R's
92
Dominion Fire
Pom. Iron* Steel 5s 1939
Dom. Power . pfd.
Dunlop Tire pref.
6's.
Eastern Car 6's
Eastern Theatres., .com.
Famous Players. S% pfd.
Goodyear Tire., pref....
G'rd'n, Ironside &Fare6's
Harris Abattoir 6's
Home Banl<
Imperial Oil..
King Edward Hotel.com.
..7's.
Loew's Ottawa ....com.
Loew's Hamilton. . .com.
Manufacturers Life
Bid
Ask
45
63
69
83
90
88.50
91.50
90
97
84
90
16.50
80
70
77
88
89.50
93.50
98
I0'2
109
115
63
72.75
76
11. .50
170
105
200
VVireles
Massey-Harris
Mattagama Pulp... pref.
Mercantile Trust
Mexican Nor. Power. .5's
Morrow Screw 6's
Murray-Kay pfd.
National Life .... -
North Star Gil com.
" . . . . pref.
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Page Hersey pref.
Riordon . . com. (new stk.)
..pfd.
R. Simpson pfd.
Southern Can. Pow..pfd.
Sterling Bank
Bid
Ask
2.50
99
70
80
90
9
12.50
84
88
60 ^
7(1
1.50
4.80
5.10
3.65
71
76.50
93
96.50
84
'25
30
78
85
73
76
69
109
73
114
Sterling Coal cc
St. Lawrence Sugar 6
Toronto Carpet cc
Toronto Paper I
Toronto Power. 5's ( 1924)
Trusts Guar
United Cigar Stores com
pref.
Western Assurance
Western Can. Pulp.com
Whalen Pulp. com
.... pref
Ask
22. -25
January 21, 1921
THE MONETARY TIMES
We Offer
SCHOOL BONDS
Province of Alberta
Maluring 10 and 15 Yean
lo yield '
j 7lo7%% j
Wf Specially Recommend these Bonds as Sound Inveslmenis
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto BIdg. Royal Bank Chambers
EDMONTON CALCARY
The Bond House of British Columbia
WE ARE IN THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
throufih the mails, bet-an-
died hy a dozen clerks, be tiled,
and yet, at thecrucialmoment,
carry into a President's otWce
the suBgestion of your Com-
pany's dignity and standing-if
it be of Superfine l.inen Record.
Awarded the Cold Medal.
Antwerp ISK.i : tlic Gold Medal,
Chicago. 18H3: and the Grand Prix, Paris, ISOO.
The Rolland Paper Co., Limited, Montreal
llish Grade Paper Makers sine, 1882
Mills at St. Jeromt, P.Q.. and Mont Roll>
#
\82 /^^
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. W. .MAHAN J A. WKST.MAN
President Managing Director
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches— SASKATOON AND CALGARY
Canadian Managers
iNVBsrnEKT Corporation up Canae
London Offic
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank Bldg., Edmonton, Alta.
P. M. LIDDELL & COMPANY
Inveslmeni Banlfers. Fiscal Agents
Insurance Brokers
826-7-8 ROGERS BUILDING, VANCOUVER, B.C.
LOUGHEED & TAYLOR, LIMITED
STOCKS, BONDS AND ESTATE AGENTS
CALGARY
ities and experience in procuring Store Sttc---
:e Property Locations for Chain Stores.
•ice ( overs all of Western Canf da.
ALBERTA
w
E have 450 good businesses for sale in the central
portion of Alberta. Everything from a General
Store to a small Confectionery
If you want a business in Alberta you want us.
WHYTE & CO., LIMITED
Business Brokers
Fantages Building - Edmonton. Alberta
Vancouver District Property
Expert Estate Agents and Managers
Property Bought and Sold, Valued. Rented and
Reported on. Correspondence invited.
WAGHORN GWYNN Co., Ltd. Vancouver
X
T. K. McCallum & Company
GOVERNMENT AND MUNICIPAL SECURITIES
Western Municipal. .■Srliool and .Saakatrlien an Kiiral Tele.
pliane <'i>. debeiilurcH sprrlnllzril In.
Correspondence invited
GRAINGER BUILDING - - SASKATOON
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
tllt.VTKKAL— Week Endrd Jan. lillli.
' Kigures supplied by Burnett & Co.)
Sales Open i High
Ames-Holde
..pfd.
.'.'pfil.
Atlantic Sugar
Bell Telephone
Brazilian T,L.& Power
B.C. Fish
Brompton Pulp & P. .
Canada Cement
•■ ...pfd.
Can. Con
Canadian Cottons
.pfd.
CanadianCar
•• ....pfd.
Canadian Gen. Elec...
Can. Steamship
■• ■• pfd.
'■ • Vot. Trust
Carriage Fact
Con. Mining &Smel...
Del Rys
Dom. Canners
Dominion Bridge
Dom. Iron pfd
Don
Glas
Dom. Steel Corp..
pfd
lith.
.pfd.
Illinois Traction
■■ ..pfd.
Kaministiqua
Lake of the Woods. .
■• ..pfd.
Laurentide
LyallCons
Macdonald Co
Maple Leaf pfd.
Mont. Cottons
•■ pfd.
Montreal Power
Tram Deb...
Telegraph...
National Breweries —
Ogilvie Flour Mills...
.pfd
Ont. Steel Prod
Ottawa
Penmans
pfd.
Price Bro^
Prov. Paper
Quebec Ry. L. H.&P..
Riordan Pulp* P
St. Lawrence Fl. Mills.
ShawiniganW.&P ...
Spanish River
•• pfd.
St. Maurice
Steel Co. of Canada...
• ■■ •■ pfd.
Toronto Ry
Tucketts
pfd.
Twin City
WabassoCofn
Wayagamack P.& P..
Windsor Hotel
Winnipeg Ry
Kanks
Commerce
Hochelaga
Merchants
Molsons
Montreal
Nova Scotia
Nationale
Royal
Standard
Toronto
Union.
Bouds
A'ibestos Corp
Bell Telephone Co
Can. Cement
Can. Rubber
Cedars Rapids Mfg... .
City Mont.Dec.fi's. 1922
'■ .MayB's, 1923
■■ Sept.S's. 1923
Dom. Can.W.Loan.l925
1931
1937
Victory Bonds. 1924
1934
1922
1927
1937
1923
1933
32000
iooo
'4763
2506
16763
1233;
170983
52983
7666
25098
18417
5:449
Low Close
1063
105S
8U
MONTBEAL-ConUnued.
Konds
Dom. Cottons
Dom. Canners
Dom. Coal
Dom. Iron
Dom. Steel
Dom . Textile
Lake of Woods
Mont. St. Ry
Mont. Power
Ogilvie Flour
Penmans
Price Bros
Quebec Ry.L.H.&P..
Riordon
Sherwin-Williams. ...
Steel Co. of Canada..
Waba^so Cotton
Wayagamack P. & P. .
Winnipeg Elec
Sales Open High Low
76j
100' 93
I
271001 76^
eai
TOBONTO-Week Ended .lau. I9tli.
.pfd.
!$tocks
Atlantic Sugar
Abitibi
AmesHolden...
Barcelona
Bell Telephone
Brazilian Traction. ..
Burt. F. N
•• pfd.
B.C. Fish
Can. Bread
Canada Cement
■■ pfd.
Canners
pfd.
Canadian Pacific R...
Can. Gen. Elec
. pfd.
Canada Steamship....
pfd.
Coniagas
Con. Gas
Crows Nest
Dome
Dom. Tel
Duluth
Loco
•• pfd.
Mackay Companies.. . ■
■■ ...pfd.
Maple Leaf
■' pfd.
N.S. Car
•• " pfd.
N. S. Steel
Pac. Burt pfd.
Penmans pfd.
Porto R'co
■■ pfd.
Quebec R.L.H. & P
Riordon
Rogers
pfd.
Russell pfd.
Salesbook pfd.
Sawyer-Massey .... pfd.
Sh. Wheat
Smelters
Spanish River
..pfd.
Steel Corp
Steel Company
...pfd.
Toronto Ry
Tucketts pfd.
Twin City
Winnipeg Elec
■tanks
Commerce
Dominion
Hamilton-.
Imperial
Merchants
Molsons
Montreal
Nova Scotia
Royal
Standard
Toronto
Union
Loan and Trust
Can. L.nnd
Col. Inv
Can. Perm
Lon. & Can
Toronto Gen. Tr.Rights
Tor Mtg...
Bonds
Elec. Dev
Canners
Quebec
Rio. Jan. T.. L. & P....
Sao Paulo
Sales Open ,High | Lo
1000
1000
10000
3200
10500
44^
45
21*
22
62j
64'
91
91
364
38i
80
80
40
14U
mi
104
95
95
474
49*
73
73*
.10
2.10
rOKOtlTO— Continued
War Loans
Sales
5300
Open
High
Low
92
Close
Dom. Can.W.Loan. 1925
94
94
93a
1931
17700
93
93?
93
93i
1937
72600
97S
97 ii
97
974
983
Victory Loan 1922 ....
215700
984
985
971
1923 ....
82200
96*
97i
96*
97
1927 ....
57550
97^
98i
97*
9SJ
1937 ....
123500
991
991
89
99J
933 ....
959650
98
98
9.5(!
978
1934 ..
796260
953
95^
95
95i
1924 ....
114250
97
97
9S
96J
WiKNIHE«-Week ended Jan. ISilli.
Victory Loan 1922..
" 1923..
•' 1924..
" 1925..
" 1927..
•■ 1937..
" 1933..
" 1934.
War Loan 1931 ....
" 1937..,.
" 1925....
Can. Fire
Standard Trusts.. .
North Star pfd.
Sales
Open
High
Low i
17000
98i
98i
97?
15950
97*
974
97
5850
97
97i
95^
3750
97
97
96
lOIOO
100
100
97}
961
23600
97f
98
55850
958
95}
9ii
94J
900
91
91
700
95*
%J
95*
1000
93
93
93
10
125
125
125
80
110
110
no
10
370
370
370
NEW YOBK— Week ended Jan. ISIIi.
Canadian Pacific, . . ...
Canada Southern
Nova Scotia S. & Coal.
Granby Consolidated . .
Bonds
Dom. of Can. 5% 1921
'■'■ '.'. '.'. ^5/^ '^2'
5J% 1929
5% 1931
S'ew York Curb —
40000
30000;
9000
41000
38000
High
I19i
Close
117S
"343'
22
LOPOM. Eng.— Week ended Jan. Mb.
Clov'i. A Sinn.
Alberta 4j%
•• 4% debs
Canada. 3*% 1930 50..
4% 1940-60
" .... 4J% 1920-25
B.C. 4*%
Edmonton 5%bds.23-53
Nfld.4i ,.1935
■ 3J% bds
■■ 4% cons. 1936
Montreal 4j% Reg
4% Reg. 48-50
Ontario 4% Reg
Quebec 4% bds. 1934...
Regina 5% debs
• 5% cons. Reg..
Toronto 3i%c'ns. db. 29
4% debs. 1944-8
4J%1948
Victoria 3*% 1921-8 . . .
3*% 1929-49...
:: 4% cons
5i% cons... . . .
Winnipeg 4i% 1943-63..
4% debs
Ballnays
Can. Nor. 4% deb. 1939
" Ont. 4% deb.
" Pac. 4% deb.
Calg'y&Edm.4%c. db.
Can. Pac
" 4% deb.
•■ 4% pfd.
G.T.P. Br. 4% bd 1939.
G.T.P.3%bds
G.T.P. 4% 1955
Gr. Trunk.... 4% guar.
Gr. Trunk5% 1st. pfd..
Gr- Trunk 5% 2nd pfd.
Gr. Trunk 4% 3rd pfd..
Gr. Trunk 4% cons
Ont. & Quebec 5% deb.
St. John & Que. 4% deb.
P.Gt.East.4j%deb.'42
Ind.. Fin., Ktr.
Can. Car 7% pfd
Can. Cement 6% bds...
Can. West Lumber 5%
.Metropol.Elec.34%db.
Kaministiquia P.5% bs.
Vanc-ver P 4i%gr.db.
Can. Gen. Elec
Shawinigan Water
Dom. Steel Corp
Can. Iron Foundries...
Sales Open High Low
161*
64 i
6U
853
January 21, 1921
THE MONETARY TIMES
CONTINENTAL AND FIDELITY-I'HENIX EMPLOYEES
IMIOGRESS OF NATIONAL LIFE ASSURANCE CO.
The employees of the Continental Insurance Company,
of New York, and the Fidelity-Phenix Fire Insurance Com-
pany, of New Y'ork, whose joint Canadian head office is
operated at 17 St. John Street, Montreal, under the man-
agement of Mr. W. E. Baldwin, received on December 24 an
amount equal to 10 per cent, of the salary paid them during
the year 1920.
BANKRUPTS AND AUTHORIZED TRUSTEES
A reprint of the "Canada Gazette" has just been pub-
lished, showing the notices of appointment of trustees under
the Dominion Bankruptcy Act from July 1, 1920, up to No-
vember 27, and also the notices to creditors. From the latter
a fair idea of the nature of the firms coming under the
operation of the act may be obtained. They include: —
Synthetic Rubber and Tire Co., of Canada, Ltd., Tor-
onto; Empire Traction Co., Ltd., Edmonton; Pathe Freres
Phonograph Co. of Canada, Ltd., Toronto; Hyde Shoe Manu-
facturing Co., Ltd., Toronto; Royal Supply Co., Calgary;
Phonograph Specialties, Ltd., Montreal; Gibson Lumber and
Shingle Co., Ltd., Ahousat. B.C.; Eastern Ladies Wear Mfg.
Co., Montreal; Dominion Food Products Co., Ltd., Guelph;
Dominion Shipbuilding and Repair Co., Ltd., Toronto;
Stewart Mercantile Co., Ltd., Stewart, B.C.; Canadian Ferro
."Alloys, Ltd., Shawinigan Falls; Toronto Cement Products
Ltd., Toronto; Getty Shoe Co., Kitchener; Capital Broom
Co., Regina; Gulf Islands P'ishing and Canning Co., Van-
couver; Dominion Fibre Co., Guelph; Acme Leather and
Supply Co., Montreal; F. R. Oliver Mfg. Co., Toronto;
Century Mfg. Co., Montreal; Consolidated Fish and
By-Products Co., Ltd., Heriot Bay, B.C.; Eagle Shingle Co..
Ltd., Dewdney, B.C.; Rideau Steamboat Co., Ltd., Ottawa;
Peerless Rubber Co., Ltd., Toronto; N. Brenner and Co.,
Ltd., Toi-onto; Canadian Fisheries and Storage Co. Ltd.,
Port Stanley; International Motors, Ltd., Vancouver, B.C.;
Ideal Glove anil Mitt Works, Montreal.
WESTERN HOMES, LIMITED, REPORT
The eleventh semi-annual dividend at the rate of "Tr
per annum, announces M. Willis Argue, president of Western
Homes, Ltd., which will hold its annual meeting on January
27. The company was organized and started business in
1915. On account of the unsettled conditions it was decided
to proceed with a small organization. By the time the
authorized capital ($1,000,000) was fully subscribed, it was
found that business had increased substantially, and it was
deemed advisable, therefore, to provide more capital. At a
special meeting of the shareholders in September last it was
decided to increase the authorized capital to $.5,000,000, and
to offer 10,000 shares to shareholders and other investors
in Manitoba. Applications for more than 2,000 shares have
been accepted by the board, and it is anticipated that the
whole issue will be taken early this year. The intention is
to expand from time to time as conditions and circumstances
warrant until the capital has reached $.'),000,000. With re-
gard to home building, Mr. .\rgue announced that it was
still the intention of the company to assist men who are
building homes to buy their material, supply labor and super-
vise their work. This assistance will be given only to those
who require it and a nominal fee will be charged for the ser-
vice rendered.
The officers and directors of Western Homes are: M.
Willis Argue, president and manager; W. Redford Mulock.
K.C., and David J. Dyson, vice-presidents; Ralph C. Duncan,
secretary-treasurer, and Wm. Owen Jefferies, Malcolm Mc-
Innes, Wm. A. Bremer and Edwin J. Brownlee, directors.
Up to the present time few reports of life insurance
companies' operations in 1920 have been submitted to the
public, but those which have appeared indicate clearly the
progress made in this field last year. The annual report of
the National Life Assurance Co. is a good illustration. New
assurances issued and revived in 1920 amounted to $7,501,-
852, an increase over the previous year of $2,261,500. The
actual cash receipts amounted to $1,280,558, being $181,055
in excess of the 1919 figure. Reserves for protection of
policyholders were increased $324,079 to $4,298,456, while
a surplus of $466,081, including paid-up capital of $250,000
for additional {irotection of policyholders, showed an in-
crease of $45,992.
The progress of the National Life is illustrated by the
following figures: —
Assets. Business in force.
1902 $ 199,071 $ 3,425,897
1911 1,740,701 14,453,866
1914 2,886,717 21,908,408
1917 3,755,420 22,686,816
1920 5,179,182 30,806,390
The assets of the company are made up largely of Do-
minion and provincial government and Canadian municipal
debentures. These securities have a par value of $4,375,806,
but are shown in the statement at book value of $3,934,496.
TORONTO GENERAL TRUSTS ATTAINS ANOTHER
RECORD
The Toronto General Trusts Corporation's statement
for 1920 shows estates trusts, etc., at $100,248,237, as against
$87,763,834 last year. Trust funds for investment and dis-
tribution amount to $31,112,579, compared with $27,885,791
at the end of 1919. The guai'anteed trust account is slightly
lower at $9,124,317.
Capital account shows that the paid-up capital now
stands at $1,726,960, as compared with $1,500,000 previously.
The reserve fund has been increased by $250,000 to $2,250,000.
Gross profits for the year increased in accordance with
the increase in the business handled by the company, the
figure being $820,269, compared with $757,338 for 1919. Net
profits, after allowing for administration expenses, advertis-
ing, rent, taxes, etc., totalled $353,713, which, added to the
amount of $265,529 brought forward, and $171,395 premium
on a stock issue of $500,000 made during the year, left $790,-
638 for distribution. Out of this two quarterly dividends
at the rate of 10 per cent, per annum, and two at the rate
of 12 per cent., per annum were paid to shareholders, while
a bonus of one per cent., was also declared. A balance of
$293,163 was carried forward.
The Toronto General Trusts Corporation is the oldest
trust company in the Dominion, having been formed in 1882,
and the close of 1920 marks another step in its rapid pro-
gress. In 1912, when the corporation had been in business
for thirty years, the total assets under its care amounted to
$50,000,000; whilst at the eijd of 1920, eight years later.
another $60,000,000 had been added.
TEMISKAMING AND NORTHERN ONTARIO RAILWAY
Net earnings of $298,842 for the year ended October
31, 1920, are reported by the Temiskaming and Northern
Ontario Railway, compared with $53,153 in the previous
year. In addition, about $250,000 of back-wages had to be
paid under the McAdoo award, and some other debts met.
Gross revenues during the year 1920 were, according to the
report, $4,187,573, as compared with $3,207,708 in 1919, an
increase of nearly a million dollars. Expenditures on way
and track maintenance during the year were $813,763, as
compared with $718,431 in 1919. Rolling stock maintenance
cost $770,620, as against $.594,401 in 1919.
THE MONETARY TIMES
Corporation Finance
Gordon Ironside Interest Default Explained— Montreal Telegraph Statement
Void of Important Changes— English Syndicate to Take Over Davidson
Gold Mines — Canadian Western Natural Gas Company Had Loss Last Year
Dominion Bridge Company, Ltd. — At the annual meeting
of the company last week it was announced that the company
had financed its new subsidiary, the Canadian Tillsoil Farm
Motors, Ltd., by the purchase of 500 shares of preferred stock
at the par value of $100 a share and 10,000 shares of common
stock of no pai' value at $5 a share, or a total of $100,000.
The company owns the whole stock of this concern. Refer-
ence was made to an increase of the present dividend of 8
per cent, by a shareholder, but the reply of the president,
G. H. Duggan, did not encourage the idea at the present time.
He said that while the directors would rot forget this, the
present was an occasion where caution was required.
North American Pulp and Paper Company The re-
organization of the North American Pulp and Paper Co.
Trusts will take place at the annual meeting of the company,
which has been called for February 8 at the Ritz-Carlton
Hotel. It is proposed to authorize the trustees to sell the
assets for an equivalent of $6 (American funds) per share
of common stock after redeeming the preferred. For each
ten old shares of N.A. Pulp held will be offered in exchange
one preferred share and four common shares of $10 par value
in the Saguenay- Pulp and Power Co.
The trustees also desire to be authorized, in the event
of their being unable to effect such a sale, to sell sufficient
of the trust estate to pi'ovide funds for the redemption of the
preferred stock and expenses, and to distribute the remainder
ratably among holders of the common stock. The Saguenay
Company is applying for permission to subdivide its preferred
and common shares, which are of par value of $100, into
shares of $10 par, so as to more easily convert.
Canadian Western Natural Gas, Light, Heat and Power
Company, Ltd. — According to the report of the company for
the year ended September 30, 1920, which will be submitted
at the annual meeting at Calgary, Alta., on January 26 next,
the number of consumers supplied at the end of the year was
12,118, an increase of 277, or 2% per cent, over the number
supplied in the previous year. The total consumption of gas
decreased during the year 55,310,000 cubic feet, or 16% per
cent., one-sixth less than in the preceding year. Service for
industrial purposes has been practically discontinued, forming
now only about 1% per cent, of the total. The average
prices on rate obtained for the gas during the year were
34% cents for the total consumption, 35 cents for the
domestic, and 16% cents for the industrial. The rates
have been inadequate to properly sustain the business of
the company. The supply of gas to Calgary, Lethbridge
and other towns and villages on the company's mains
is seriously threatened through the lessened output of the
Bow Island field, now over eight years old, and an advance
in rates is imminent if the gas fields are to be developed
and the present pipe lines extended. An application for new
rates has brought in response from the municipalities affected,
and the company has consequently had to discontinue its
search for new gas fields. The directors are confident that
if they are shortly placed in the position of charging a fair
and sufficient price for their output it will be possible to
secure a gradually enlarged supply from several new fields.
The net loss on operations the past year was $101,607.
Montreal Telegraph Company — The financial statement
of the company for the year ended December 31, 1920, is void
of any important changes. The company's property, valued
at $2,151,823, is unchanged as compared with a year ago,
while liquid assets of $163,663 are a few hundred in excess
of 1919. The contingent fund has been increased slightly at
$122,720.
The company's property alluded to in the foregoing state-
ment was taken over in 1881 by the Great North Western
Telegraph Company, now controlled by the Dominion, and
operated with its railway system under the management of
its Canadian National Railway Company in conformity with
the terms of the agreement with that company and the West-
ern Union Telegraph Company, adopted at a general meeting
in August of that year. The agreement provides for the
operation and maintenance of the property by the Great
North Western Telegraph Company, as well as the payment
of dividends. Operation, maintenance and payments are guar-
anteed by the Western Union Telegraph Company. The agree-
ment is for a period of 97 years from July 1, 1881.
Out of the revenue (S per cent, on the company's capital)
derived from the operation of the company's property by the
Great North Western Telegraph Company dividends were
paid to shareholders to the extent of $160,000. From the
revenue derived from the investment of the company's con-
tingent fund the annual bonus, amounting to $5,000, was
distributed to shareholders.
Davidson Consolidated Gold Mines, Ltd. — At a meeting
of shareholders of the company in Toronto this week a de-
cision was reached to sell the stock to an English syndicate.
The syndicate has purchased 1,000,000 shares of treasury
stock at 75 cents a share and will buy in the outstanding-
stock in the hands of the shareholders at $1.18 a share. The
intention is to reopen the mine on March 1 with ample funds
to carry on work and erect a 500-ton mill. The money neces-
sary to the deal is all to be paid by the end of March, the
proposal having been changed to cash from the previous
option plan.
The financial statement of the mine showed assets of
$4,057,265, made up of plant and equipment, $74,401; de-
veloping expenses, $237,660; gold receipts since last meeting,
$17,069; and property, $3,556,810. The liabilities total $57,-
260, and the largest item is $31,121, which was money ad-
vanced by F. C. Sutherland and Co.
Gordon Ironside and Fares Company, Ltd, — An explana-
tion of the default of the company, on its bond interest, due
January 1, has been made in a circular from the company
to the Standard Trusts Co., of Winnipeg, trustee, and for-
warded with a covering letter by the Dominion Securities
Corporation, Toronto, to parties interested. The company's
circular sets out that there was a deficit for the year ended
February 28, 1918, and arrangements were made with the
Harris Abattoir Co., Ltd., of Toronto, to lease the company's
plants and operate them by means of a new company called
"Gordon Ironside and Fares Packers, Ltd.," of which the
Harris Co. holds a majority of the stock, and the original
Gordon Ironside and Fares the balance.
The plants and equipment were leased for five years at
a rental of $76,000 yearly, but the new company was un-
fortunate from the beginning, making heavy losses, the worst
blow being the rejection in the first year of almost 10,000,000
pounds of beef by the British Ministry of Food, making a
loss on one transaction of nearly $500,000. Subsequent
extraordinary conditions caused further losses aggravated
in the fall of 1920 by the great decline in general inventory
values.
A financial statement subjoined shows that out of a
total bond issue for $1,907,600, $902,300 had been retired by
sinking fund, leaving $1,005,300 outstanding. From this
should be taken $81,407 mortgage investments and $1,285
cash, leaving balance of $922,608, required to redeem out-
standing bonds. The statement shows assets of $1,988,080,
made up of company's plants, ranches and retail stores, thus
leaving a surplus of $1,065,472 above the bonded debt.
In their covering letter, the Dominion Securities Corpora-
tion say, in part: "While the company's position is un-
fortunate, we are hopeful that the negotiations now under
January 21, 1921
THE MONETARY TIMES
way will result in the operation of the enterprise by the
■ Harris Abattoir Co. interests on some mutually satisfactory
basis, pending- the return of better business conditions in the
packing- industry in the west. We have always regarded the
security for the outstanding bonds of the Gordon, Ironside
and Fares Co. (now $1,005,300.) as ample, in view of the
large amount of real estate, plants and buildings specifically
mortgaged. While we do not think the undertaking in the
event of forced liquidation would realize the surplus indicated
in the company's letter above mentioned, we feel that the
principal represented by the outstanding bonds should be
safe, unless some extraordinary developments should occur.
In the meantime, pending the conclusions, negotiations now
on, and the calling of a meeting of the bondholders, we shall
do our utmost, in co-operation with the trustee, to safe-
guard your interests."
Rarcelona Traction, Light and Power Co. — At the annual
meeting of the company in Toronto this week, the position
of the company was fully discussed, and the policy of the
directors outlined. In the absence of E. R. Peacock, presi-
dent, vice-president Miller Lash presided over the meeting.
One change took place in the directorate, E. A. Macnutt,
treasurer of the Sun Life Assurance Co., replacing T. B.
Macaulay, president of the Sun Life, at the request of the
latter. The chairman explained conditions during 1920,
which could not be referred to at length in the company's
report for 1919 before the meeting. Some of the new in-
formation given was favorable, while other things were not.
.^bout the middle of last year, the company completed two
units of the new power development at Camerasa, but, owing
to the slowing down of business in Spain, as elsewhere, the
new power had not found a ready market as yet. It was ex-
pected that this would improve as conditions settle down.
Labor matters wei'e improving, as, since the social revolu-
tion attempted last year, directed by Lenin, the extremists
in the labor party had split, and a new strong civil govern-
ment has been deporting the worst of them from the "country.
The changed attitude of the government toward labor was
considered a favorable development.
Advantage had been taken of the condition of exchange
to pay off a series of debentures held in France, and on this
transaction the company profited to the extent of £900,000,
the money being raised through a syndicate in Great Britain.
.\ cable just received from Mr. Peacock stated that labor
is quiet, and business is good at Barcelona. The failure of
the Bank of Barcelona recently, however, had closed the
market for the sale of securities for the time being. The
company did not lose anything through the bank's failure,
its deposits with the bank not amounting to anything. The
failui-e of the bank and disturbance resulting therefrom had
depressed Spanish exchange, and, in the meantime, to that
extent i-educed the company's earnings, which were based
on exchange at par.
Higher rates had been secured from many light cus-
tomers, and some progress had been made in raising the
rates for powei-. Revenue from power sources will improve
as business picks up. The only present extension proposed
is seven miles of railway which, it was thought, would
finance itself. Net earnings for 1920. estimating the figures
for December, would show a good increase, being placed at
20,788,649 pesetas, compared with 15,746,216 in 1919.
Following the regular meeting, a special general meet-
ing was held, at which several changes in the company's
organization were made. A new by-law of the directors was
ratified, removing the compulsory feature which had pro-
vided for the redemption of a certain amount of preferred
stock each year. This provision had, in fact, not been
observed, at least of late years, and, following the securing
of the consent of all the preferred shareholders, the change
was made, coupled with a provision that the company may,
however, redeem preferred shares at 110 at any time it sees
fit to do so. .A.nother change involved provides that prefer-
ence shareholders shall share pro rata with common share-
holders in any surplus for distribution, thus making the
preference shares participating.
MIDLAND LOAN AND SAVINGS COMPANY
The Midland Loan and Savings Co., which has its head
office at Port Hope, Ont., has just submitted its report for
the year ended December 31, 1920, showing that the com-
pany had a successful twelve months. Mortgage loans in-
creased from $900,272 to $910,307, while holdings of govern-
ment, municipal and other bonds are shown at $578,374, as
against $578,142 at the end of 1919. Cash in banks and on
hand at the end of the year amounted to $154,002, compared
with $84,781, previously reported.
As a result of increased business, earnings, rents and
miscellaneous receipts totalled $120,283, being an advance of
$24,211 over 1919. In addition to the regular dividend of 8
per cent., a bonus of li of 1 per cent, was distributed to
shareholders. The reserve fund was increased $15,000 to
$300,000, and is now 90 per cent, of the paid-up capital of
$360,000. Thomas Wickett, president, in his report, states
that mortgage instalments, both principal and interest, have
been exceptionally well met during the year.
SHUTDOWNS AFFECT PAYROLLS
Dominion headquarters of the Employment Service of
Canafia, Department of Labor, reports that there was another
pronounced decrease in employment during the week ended
December 24, 1920, when it was reported by 4,742 firms that
they had released 17,484 persons, a contraction in payroll of
nearly three per cent. Firms in two industrial group.=i
re-jistered additions to their payrolls totalling 1,232 workers,
but in thirty-one groups there were declines aggregating
18,716 employees. It is interesting to recall that during the
week ending December 27, 1919, there was also a marked
decline in employment, nearly 14,000 persons being released
duriner that week, the decrease in both cases being largely
due to shut-downs for Christmas holidays and for inven-
tory purposes. The figures used in these reports do not in-
clude loss of time due to industrial disputes.
Employers in all provinces report shrinkages in payrolls,
the decrease of 8.139 persons in Ontario being especially sub-
stantial. For the following week, moreover, further large
decreases were anticipated in every district. Employment
in Nova Scotia, Prince Eilward Island, Manitoba and Al-
berta was still at a higher level than on January 17, 1920,
the base week, but in the remaining sections decided de-
clines were i-egistercd. The only net increases in employment
recorded during the week of December 24 occurred in local
transportation and retail trade. In the latter group the ex-
pansions in payroll were of course due to Christmas activity
in stores, largely in Ontario but in lesser degree in the other
provinces. In local transportation the increases in staffs
which occurred largely in Manitoba were to assist in snow
removing.
The most pronounced contractions in payrolls were re-
corded by firms in logging, sawmills, in the crude, rolled
and forged, railway car and shipbuilding divisions of iron
and steel, in pulp and paper manufacturing and printing
plants, in the hosiery and knit goods, garment, thread, yarn,
cloth and bedding manufacturing branches of the textile
froup, and in buildin? construction. In many cases these
decreases may be attributed to shut-downs for holidays and
inventory purposes. In sawmills and building construction
the declines were seasonal in character, as wei-e also the
smaller losses recorded in railway construction. In addition
to the reductions noted above, there were shrinkages in pay-
rolls in abattoirs, telephone operation, brickmaking, confec-
tionery, canning, leather and tobacco factories, in the coal
and non-ferrous metallic ores divisions of mining and in
railway and water transportation, the declines in many of
these groups being due to the causes already mentioned.
Further substantial losses were anticipated for the fol-
lowing week in practically all these groups except logging,
in which considerable recovery was expected.
THE MONETARY T I M P: S
RECENT F I K E S
Largest Fire This Week was at Sydney, N.S., Where
There was a Loss of $200,000— Halifax, Whitby, Ont.,
Caribou, N.B., and Sarnia also Suffered Heavy Losses
Beamsville, Ont. — January 19 — Factory of the Beams-
ville Basket and Veneer Co. was destroyed by fire. The loss
is $40,000 with $11,000 insurance.
Caribou, N.B.— January 8— The Ritchie Block in Water
Street was damaged by fire with a loss of $50,000, partly
covered by insurance.
Gait, Ont January 19 — Fire starting in the plumbing
shop of W. H. Pinkett, West Main Street, did $2,000 damage
to the shop and adjoining buildings.
Halifax, N.S. — January 19 — Fire, caused by a defective
wire, did $1,50,000 damage to the hardware store of Morton
and Thompson, Sackville Street. There was $63,000 insurance.
Hull, Que. — January 17 — Fire, caused by some sparks
from an electric motor, destroyed the mattress factory of
J. B. Larose, 139 Montcalm Street, causing damage estimated
at $10,000.
London, Ont. — January 17 — Fire of unknown origin did
considerable damage to the east pavilion of the Byron Sani-
tarium.
Maidstone, Ont. — January 13 — Fire caused by a hot
journal spreading flames to oil and flour dust completely
destroyed the grain elevator and chopping mill owned by
Vincent McCloskey and George Grondin.
Montreal, Que January 17 — M. A. Bradshaw's box fac-
tory, situated at 1483 Chateaubriand Avenue, was destroyed
by fire.
Narcisse, Man. — January 12 — The warehouse of the Nar-
cisse Trading Co. was damaged by fire. The loss is $10,000.
North Sydney, N.S. — January 10 — Damage estimated at
$25,000 was caused by fire which destroyed the warehouse
and stables of Malcolm J. Ross.
Ottawa, Ont. — January 16 — A fire, believed to have been
caused by electric wiring, did $5,000 damage to the Royal
Ottawa Golf Clubhouse on the Aylmer Road.
January 18 — The flax building at the Experimental Farm
was damaged by fire. The loss is estimated between $10,000
and $15,000.
Paris, Ont. — January 15 — Palace Rink was destroyed by
fire. The fire, which was caused by a cigar stub, caused
$20,000 damage, with no insurance.
Sarnia, Ont. — January 17 — Fire of mysterious origin
totally destroyed Brown's icehouses along the bank of the
St. Clair River, causing a loss of $40,000. The loss is covered
by insurance.
St. Thomas, Ont. — January 1 — Fire, originating from
defective electric wiring, did considerable damage to the
storeroom of the Neal Baking Co.'s plant.
Stratford, Ont. — January 7 — The Classic City Bakery,
situated on Ontario Street, was damaged by fire. The loss
is $2,000.
Swift Current, Sask. — January 10 — The city hall was de-
stroyed by fire with an estimated loss of $65,000, while the
building and contents were only insured for $23,500.
Sydney, N.S. — January 14 — The Ingraham Block on
Charlotte Street was destroyed by fire. The loss is estimated
at $200,000, with insurance as follows: Travis Block, $50,000;
Faulkner Block, covered; Travis music store, $2,500; Mc-
Donald's shoe store, $45,000; co-operative store, covered;
pool room, $6,000; bowling alley, $5,000; A.O.H. Div., $1,000;
Mcintosh and Lebbetter, $2,500; McLeod, $1,000; Greenshields,
$1,000; Steckler, covered; Jos. Woodill, not covered.
Toronto, Ont. — January 7 — A fire broke out in the base-
ment of the United Jobbing Building at 76-78 York Street
and caused damage of approximately $60,000.
January 11 — The cottage at 19 Power Street, owned by
Alfred Simms, was desti-oyed by fire. The fire was caused
by a lamp exploding. Mr. Simms was burnt to death.
Toronto, Ont. — January 15 — With a loss estimated at
$24,000, the premises of the Transparent Rubber Goods Co.,
1555 Danforth Avenue, was destroyed by a fire caused by an
explosion.
January 18 — Apartments at 868 Dundas Street East
were damaged by a fire caused by an explosion of a coal oil
stove. The loss is $400.
Upper Cross Creek, N.B. — January 12 — The lumber mill
belonging to Gordon G. Scott, of Fredericton, was destroyed
by fire. The loss is estimated at $25,000, partly covered by
insurance.
Whitby, Ont. — Januai^ 13 — The infirmary at the Ontario
hospital was destroyed by fire. The loss is estimated at
$60,000.
ADDITIONAL INFORMATION CONCERNING FIRES
Hamilton, Ont. — December 17 — Calvin Presbyterian
Chuich was damaged by fire, which was of incendiary origin.
The loss is $2,200, with insurance of $2,000 in the Royal
Insurance Co.
London, Ont. — Decem.ber 13 — The fire in the Aged
Women's Home resulted in a loss of $300 on building, with
insurance of $20,000, and a loss of $114 oii contents, with
insurance of $10,000.
Quebec, Que — The following information is supplied by
the chief of Quebec fire department regarding the fire which
started in the shoe store of L. Deschenes on December 9: —
Insui
fance.
Stock and
Loss.
Stock and
Building.
fixtures.
Building.
fixtures.
L. Deschenes
, . $ 7,000
$ 9,000
Total loss.
E. Sewell Estate .
6,000
$3,686
Mrs. J. J. Smith . .
13,000
5,500
1,275
$3,075
A. 0. Pruneau . . .
10,000
9,000
M. Leonard
8,000
460
R. Fallis
3,000
1,616
M. Dionne
1,000
200
Manitoba. — During the 'month of November 150 fires
occurred in the province with a loss of $342,187. There were
44 dwellings damaged, 40 farm buildings, eight stores and
five wholesale warehouses. Defective stoves and furnaces
caused 24 fires, spontaneous combustion four.
New Carlisle, Que. — December 5 — House and contents
belonging to Hon. John Hall Kelly, K.C. The loss on contents
is $40,000 and $25,000 on building. There is insurance of
$13,000 in the Northern Assurance Co.
St. John's. Nfld. — December 7 — Bakery, plant and stock
of the Trade Bakery, Ltd., was damaged by fire. The loss on
contents is $54,000 and on building $75,000. There is insur-
ance of $50,400 in the following companies: British Traders
Insurance Co., Ltd., Liverpool and London and Globe, Gen-
eral Fire Assurance Corporation, Continental Insurance Co.,
Fidelity-Phenix, Nova Scotia Fire Underwriters Agency,
Union Assurance Society, Ltd., Yorkshire Insurance Co., Law
Union and Rock, Baloise, Fidelity-Phenix, Atlas, Alliance,
British America, Eagle, Star and British Dominions, Conti-
nental, Guardian, Hartford, Liverpool and London and Globe,
General Fire Association, Nova Scotia Fire, Norwich Union,
Union Assurance Society, Yorkshire Insurance Co., Phoenix
Insurance Co.
Sydney, N.S. — November 22 — Department store of J. F.
Merchant and Sons was damaged by fire. Estimated damage
to building, $10,000, and to stock, $80,000. Insurance carried,
$173,000.
Sydney Mines, N.S. — December 15 — General store and
hotel were damaged by fire. The fire started around the
kitchen stove. The loss is $23,000, with insurance of $8,000
in the Royal Exchange, Scottish Union and National, Mutual
Fire Association.
Winnipeg, Man. — On December 14 two hotels and a
restaurant, situated at 507-517 Main Street, were damaged
by fire. The fii-e was caused by a defective chimney. The
total loss is $18,168, with insurance of $34,600.
Wolfvillc, N.S.— December 1— The College Hall, part of
Acadia University, was damaged by fire. The loss on con-
tents is $25,000 and $100,000 on building. There is insurance
of $45,000.
The Monetary Times
Priming Company
of Canada, Limited
l'^lMi^h•.■r.. als.i ,.]
"The Canadian Engineer"
Trade Review and Insurance Chronicle
of Canada
Established ISiS'i
Old as Confederation
JAS. J. SALMOND
President and Genei-al Manager
A. E. JENNINGS
ABSistant General Manager
JOSEPH BLACK
Secretary
•*'. A. McKAGUE
Editor
Health and Accident Features in Life Policies
Proposed Amendment to Dominion Insurance Act Would Permit Life
Companies to Write Other Classes of Business — Fire and Casualty Com-
panies Could Also Enter Life Field — Separation of Funds for Protection
of Different Classes of Policyholders — Some Suggestions for Companies
By H. K. STEVENSON
(ieneral Manager, Crown Life Insurance Co., Toronto
THE question of life companies issuinj; health and accident
contracts has just recently conio within the range of
practical politics as the result of an amendment to the Do-
minion Insurance Act, which has been prepared, and which
is almost certain to become law at the next session of par-
liament, with whatever changes may be decided upon in the
meantime. The amendment permits insurance companies,
under certain conditions, to issue any or all classes of insur-
ance contracts. This amendment is the suggestion of the
Superintendent of Insurance, Mr. Finlayson. He is actively
promoting it, and endeavoring to mould it into a form that
will be the most acceptable to all concerned.
The change proposed is quite a drastic one and likely to
have far-reaching results, and yet, so far, very little public
discussion of it has taken place. In fact, the terms of the
amendment appear to be unfamiliar, even to many officials
of the companies directly involved. It is with the purpose
in view of presenting the situation to the members of the
Insurance Institute that I consented to prepare this paper.
Life Business Specialized
At the present time in Canada, as we all know, the busi-
ness of life insurance is conducted almost entirely by com-
panies which confine their operations to it, because, ever since
the year 1882, no Dominion license has been granted to a
company to carry on the business of life insurance in com-
bination with other classes. There are, however, a few com-
panies, notably the Travelers Life, of Hartford, and the Royal
Insurance Company, of Liverpool, still operating under re-
newal of licenses granted prior to that date which issue
other kinds of policies as well as life policies.
This situation is in striking contrast to the situation in
Great Britain, where licenses are issued to include widely
different classes of insurance, so that composite companies
are there the rule rather than the exception.
In the United States the laws of many of the most im-
portant states pemiit a greater variety of classes of insur-
ance to be transacted by one company than is permitted by
the law of Canada, although there is less latitude in this
respect than under the law of Great Britain. For example,
in New York State a company may secure a license to
transact both life and accident insurance, but it cannot com-
bine life wth fire insurance, nor burglary with marine in-
surance.
There is one important provision in the Canadian Act,
which was amplified into its present form in 1917, permitting
*An address before the Insurance Institute, Toronto,
jF-.nuary 26, 1921.
life companies to guarantee as a feature of their policies a
very substantial benefit in the event of the policy holder be-
coming totally and permanently disabled. This has become
a very popular feature, both in Canada and the United
States.
Double Indemnity Contracts
The question of double indemnity contracts is also of
interest. Under the ruling of the American State Depart-
ments these contracts are classed as orthodox life insurance
contracts, and a company holding a life insurance license is
permitted to issue them as a matter of course. But under
the ruling of the Canadian Insurance Department the double
indemnity feature is classed as an accident insurance con-
tract, so that a company holding a Dominion life insurance
license is not permitted, under the existing law, to issue
double indemnity contracts in Canada.
It should also be mentioned here that, companies incor-
porated by a province, such as Ontario, are permitted to
undertake any classes of insurance in combination, excepting
only a combination of life and fire insurance.
The amendment to the Canadian Insurance Act now pro-
posed creates a situation most nearly resembling that which
exists in Great Britain, although, as we shall discuss later,'
the two situations are by no means id-sntical.
The superintendent evidently has several objects in view
which have led him to advocate this amendment. In the first
place, it will enable the life companies to issue personal
accident and health contracts in conjunction with their life
policies, thus affording the policyholder a complete insurance
of his person by a single operation. The feeling is that these
classes of insurance are so closely related that they can best
be handled by the one company and by the one agent. I be-
lieve his hope is that under the new arrangements the benefits
of accident and health insurance can be provided with greater
facility and at lower cost to the public than has been possible
heretofore. Whether that expectation-will b'e realized or not
remains to be seen. I think, however, that all present here
are alive to the necessity of searching for ways and means
whereby the cost of every kind of insurance can be reduced.
Separate Funds for Different Classes
The first change which the amendment proposes is to
repeal Sections 8, 9 and 10 of the present Act, which pre-
vents a license being granted to a company to can-y on the
business of life insurance in combination with any other
class of insurance, and to substitute the following provisions:
"The license may authorize the transaction of such class or
classes of insurance, whether mentioned in this Act or not,
as the Minister may deem proper; provided, however, that,
THE MONETARY TIMES
subject to the renewal of licenses granted before the passing
of this Act, no company shall receive a license for life insur-
ance in combination with any other class of insurance unless
it maintains in respect of its business of life insurance sepa-
rate and distinct funds and securities available only for the
protection of the holders of its policies of life insurance and
not liable for the payment of claims arising from the other
class or classes of business which the company transacts."
The important point to notice here is that not only is
a separate life insurance fund to be maintained, but the
actual moneys and securities which comprise the assets of
that branch must be earmarked and kept separate. This is
a departure from the provision in Great Britain, where sepa-
rate funds are most strictly maintained, but the actual
physical assets are not separated. It is questionable whether
the amendment as it now stands should not be changed in
conformity with the British Act. . The only advantage to be
gained fi-om a separation of the physical assets would be a
greater convenience in winding up the affairs of one of the
branches separately. This problematical advantage is far
outweighed by the very obvious inconveniences which such
a system would entail.
It may be well to point out here that the separation of
funds provided under the amendment or under the British
law is a different matter from merely keeping separate ac-
counts, such as all life companies keep of the participating
and non-participating sections of their business. But these
sections are not two individual legal entities. The one could
not be wound up without winding up both.
Policies Also to be Distinct
The second change which the amendment proposes is in
Section 13 of the Act, which will be made to read as follows:
"A contract of life insurance shall not be combined in one
policy with a contract for any other class of insurance." If,
therefore, an applicant applies for life insurance and other in-
surance at the same time, a separate contract will be issued
for the life insurance, but any other kinds of insurance may
be combined in one contract.
Conditions for Expanding Business
The third change which the amendment proposes is to
add to Section 77 four new subsections, Nos. (2), (3), (4)
and (4a), to define the conditions under which a life company
can set up other branches. These new subsections are as
follows : —
"(2) If the said by-law, in the case of a life insurance
company, authorizes the transaction of a class or classes of
insurance other than life insurance, the Treasury Board shal'
• require as a condition of its sanction of the said by-law that
the company shall keep separate and distinct accounts and
create and maintain separate and distinct funds in respect
of its business of life insurance and in respect of the said
other class or classes of insurance, and the said funds sliall
be liable only for claims and losses arising from the class or
classes of insurance in respect of which they are respectively
maintained.
"(3) The amount of the said separate and distinct fund
to be maintained in respect of the class or classes of insur-
ance business, other than life insurance, shall be fixed by the
Treasury Board, and shall depend on the number and nature
of the additional class or classes of business so authorized,
but shall in no case be less than fifty thousand dollars.
Use of Shareholders' Surplus
"(4) For the purpose of creating the separate and dis-
tinct fund mentioned in subsection two hereof, the company
may, by by-law, transfer as much fund, or as part of such
fund, the whole or any portion of the balance standing to the
credit of the shareholders' surplus account, or, if duly au-
thorized by by-law passed by the directors and approved by
at least a two-thirds vote of the members present or repre-
sented at a special general meeting of the company duly
called for that purpose, transfer as the said fund or as any
part thereof an amount not exceeding twenty-five per cent.
of the surplus of the company, or the sum of one hundred
thousand dollars, whichever is the less; provided, that for the
purpose of this subsection the word 'surplus' shall be held
to mean the excess of assets over the aggregate of the com-
pany's liabilities to its policyholders, the amount of the paid
guarantee capital, if any, the contingent apportionment of
surplus to deferred dividend policies and provision for divi-
dends accrued on quinquennial participating policies on the
same scale as that used in the apportionment of surplus to
deferred dividend policies of the same duration.
"(4a) If any portion of the said separate and distinct
fund is created by a transfer from the surplus of the com-
pany, the by-law shall provide that a proportion of the profits
of the said fund equal to the proportion which the amount
so transferred bears to the total of the said fund shall there-
after be credited to the life insurance fund of the company."
Creates New Company- in Effect
The result of these provisions is that if a life company
decides to undertake any additional class of insurance, then
what is to all intents and purposes a new company is created
as an offspring from the parent company. A rib is extracted
from the parent's anatomy, namely, the initial fund of $50,000
or more, and this forms the nucleus of the helpmeet, after
which the two individuals pursue their respective ways, co-
operating with each other, but distinctly separate as to pro-
perty. Reverses may overtake the one without affecting the
security of the other. Yet both will be controlled by the one
body of shareholders and directors, and will no doubt employ
the one agency force.
The sum required to be set aside as the initial fund of
a new branch is fixed at a minimum of $.50,000. and this must
be obtained from the shareholders' surplus or fi-om the policy-
holders' surplus. Only a few of the Canadian companies have
any considerable amount of surplus standing to the credit of
the shareholders, so that a number of them would certainly
experience difficulty in obtaining the necessary sum from the
shareholders' fund unless they resort to a call for new sub-
scriptions. On the other hand, most of the companies hold
large surpluses to the credit of the policyholders, but the
bulk of such surplus is virtually a sinking fund, which must
be reserved to pay dividends on the quinquennial and deferred
dividend policies when the dividend periods mature, and is,
therefore, not available to be transferred. Under the pro-
visions of the amendment not more than 25 per cent, of the
entirely free and unallotted surplus may be transfen-ed, and
only on condition that a share of the profits earned by the
casualty branch is to be paid into the life branch, but no
part of any losses incurred is to be charged against the life
branch. It is probable that the stock companies will be re-
luctant in any event to call upon their policyholders to invest
part of their surplus fund in the establishment of a new
branch.
The Initial Fund
The fact, already mentioned, that a number of companies
might find some inconvenience in putting up the initial fund
of $50,000, leads to the inquiry whether, in certain cases, a
smaller initial fund would be sufficient. I do not wish to
review the arguments pro and con on this point, but in
passing will simply cite one example. Take the case of the
younger Canadian life companiis. Those who have built up
a permanent agency force, who have a subtsantial volume
of assurances on their books, and who find it necessary to
follow the lead of the large companies and issue health and
accident contracts in conjunction with their life policies. The
initial fund which they must put up is the same as is re-
quired of the largest companies, although, of course, the
amount of health and accident contracts issued by the larger
companies is bound to be in some cases ten and in other
cases as much as twenty times greater.
Looking at the same case from another angle, the com-
paratively small but well-organized life company puts up
the same amount for its new accident branch as is required
in the case of a brand new accident company setting up to
write sickness, accident and employers' liability insurance,
and faced with heavy organization expenses and all the diffi-
culties which beset the path of a new company.
(Continued on page 30)
January 28, 1921
THE MONETARY TIMES
CONSIDER BORROWING POWERS OF LOAN
COMPANIES
Subject Under Discussion in Dominion and Provincial Fields
— Income Tax Forms Now Prepared
especial to The Monetary Times.)
Ottawa, January 27, 1921.
n^HERE has been no decision as yet as to whether there
A will be any amendments to the Loan Companies Act
during the coming session of the Federal parliament. Just
as an effort is being made by certain loan companies to have
amendments made in the Ontario Legislature to the Loan
and Trust Corporations Act by which such companies would
have extended powers of borrowing by taking deposits,
similar representations have been made to the Dominion
Government to have the Loan Companies Act amended in
like manner.
Since the war, with the resultant adverse rates of ex-
change. Great Britain has been shut off from Canadian loan
companies as a source of borrowed money available for mort-
gages on excellent security. Some of the companies — not all
— report that they are unable to get sufficient funds tQ meet
the demands of those able to offer the best of security on
mortgages. These companies have, therefore, been repre-
senting, both in the Federal and provincial arena, that the
present limits on borrowing by taking deposits can be ex-
tended without impairing the security of debenture holders
or depositors, "provided there is careful inspection by the
government of the assets of loan companies and the main-
tenance of a reasonable proportion of liquid assets." By legis-
lation last session it was provided that loan and trust com-
panies with Dominion incoi-poration should be inspected by
the Superintendent of Insurance with the same care as in-
surance companies have been hitherto, and arrangements for
inspecting their 1920 business are now well underway. Cana-
dian banks cannot loan money on real estate mortgages as
United States banks do, and so it is urged that the loan com-
panies should be given wider powers in that respect.
Effect on Bank Deposits
Although your correspondent has been informed that
"no decision has been arrived at w^ith respect to these pro-
posals," the question of the powers of the loan and trust
companies has received considerable attention ever since the
supply of money from the British Isles was cut off. No for-
mal request for legislation has been made by the companies,
but representations have been made, and a more formal pre-
sentation of their ca.se would not be unexpected. Banks
have not been allow'ed to lend money on mortgages in Canada
in order that their funds would be more quickly realizable,
and moie readily available for carrying on the current busi-
ness of the country with its fluctuating needs. In order to
keep the deposits in the banks at a-s high a figure as possible
in keeping with this policy, any extending of the powers of
taking deposits of loan and trust companies will be made
with extreme care if at all. The opposition to any extension
of powers, as suggested, by some of the large companies will
also weigh against throwing the gates too wide open.
Income tax forms are now going out from Ottawa.
Forms on which salaries and wages of employees and divi-
dends to shareholders are shown as well as those for com-
panies and individuals are being sent to inspectors of taxa-
tion in the various districts for distribution. By February
8, they should be availatle in all pai-ts of Canada. The forms
givng information with respect to wages and salaries of em-
ployees and dividends to shareholders must be returned to
the inspectors of taxation in each local district by March
31, and the income tax forms from companies and individuals
must be returned by April 30 to the same inspectors, along
■with a cheque for at least one-quarter of the amount of the
tax, the rest to be payable in bi-monthly instalments, with
interest at (5 per cent. The whole amount of the tax can be
put in the cheque, and interest thus saved. If anyone liable
to this tax does not receive a form the onus is on him to get it.
LETTER TO THE EDITOR
FIRE INSURANCE COSTS AND COMMISSIONS
Sir, — In your issue of the 14th instant you say, "The
responsibility for conducting the Are insurance business on a
sound and economical basis rests first of all upon the com-
panies, not upon the government, and it strikes the out-
sider unfavorably when he sees that more is paid out in
acquiring business than in meeting claims, as is quite com-
monly found in the case of individual companies." I sup-
pose that is true if you pick a company here and there, and
now and again, but even so it is misleading. In the address
by Mr. G. D. Finlayson, Superintendent of Insurance for
Canada, before the Montreal Fire Insurance Brokers, 16 De-
cember last, he says: "The record of fire insurance in Can-
ada is fairly complete for a period of fifty-one years, from
1869 to 1919. The following figures give in summary form
the experience of the companies during this period: —
Losses (incurred) $327,676,803
Expense (incurred) $176,863,919
The premiums earned during this period he says were
$53.5,111,024, so that the loss ratio in round numbers was
61.5, and the expense ratio or acquisition cost 33.5. Do
you think there is anything in these figures, Mr. Editor, to
justify you in thinking that the business is not conducted on
"a sound and economical basis?"
Insurance Agent.
BIG DISTRIBUTION OF SAFETY LITERATURE
During 1920 the Ontario Safety League issued and dis-
tributed thousands of bulletins, cards, notices, etc., which
have been sent all over the province. The distribution in-
cludes 275,000 safety bulletins to industries, electric railways,
etc., 115,000 school safety bulletins, 225,000 gummed stickers,
150,000 letters to parents, 240,000 pay envelope slips, 120,000
window cards and many thousands of smaller pieces of safety
literature and cards.
There were two outstanding features in connection with
the work of the League in 1920: First, the three-day Safety
Convention in Toronto last April, when representatives from
Ontario, Manitoba, Quebec and Nova Scotia were pi-esent to
hear papers on important phases of accident prevention in
the industries; and second, the drive against accidents in
general in the spectacular "Safety Week" campaign in Oc-
tober. "Safety Week" was observed in fifteen cities thi-ough-
out Ontario and was productive of wonderful results.
The Executive Committee of the Ontario Safety League
has plans for an extension of the work of the League in the
industries, in the schools and among the pupils generally.
The seventh annual meeting of the League will be held early
in 1921.
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^
I Index for Volume 6S
I Ready
B The Monetary Times index for the
= half-year ending December 31st,
1 1920, is now ready for distribution.
1 Subscribers desiring this index will
1 be furnished a copy upon request.
.illilllllllllllllllllllllillllllllllllMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIM
THE MONETARY
1 -M E S
Volume 66.
MUNICIPAL TAXES IN MANITOBA. $16,078,985
Averages $29 Per Head of Population — Western Financial
Institutions Thri\'ing — Alberta Flour Mills Financing
(Staff Correspondence)
Winnipeg, January 27, 1921.
MANY of the western financial and insurance companies
are holding their annual meetings this week and
next, and in all cases excellent reports are being presented.
The life companies have made considerable progress, and the
volume of insurance in force is growing to very large pro-
portions. The Great West Life now have business in force
totalling $256,850,251, while the Monarch Life report insur-
ance in force of $25,000,000.
Business in Winnipeg continues to make steady pro-
gress, and collections are reported to be improving. Local
bond houses report an active demand for securities with
very little offering.
Alberta Flour Mills Issue
The Alberta Flour Mills of Calgary are actively pushing
the sale of their stock in Winnipeg and throughout Manitoba.
This milling company has a splendid board of directors behind
it, and the success of the enterprise seems assured. There is
no promotion stock, and every dollar that is raised is being
put into the erection of this large mill which will have a
capacity of eight thousand barrels per day. Col. J. S.
Dennis, Chief Commissioner of Colonization and Develop-
ment for the Canadian Pacific Railway, is one of the direc-
tors of the enterprise, and is quite confident of its success.
While in Winnipeg a few days ago he had this to say about
it:—
"We determined to secuie the money for this
mill in the west, and we decided that we would proceed
with the erection as we secured the funds. It was our wish
and still is, that all the common stock should be owned in
the west, and that the control of the property should be in
the west. We have adhered to this policy and will continue
to do so. We could have made more rapid progress if we
had had all the money we needed at the beginning, but vVe
are satisfied with what has been done. There is good
prospect that the mill will be finished and equipped
this year. We are now out to get the balance of the needed
money, and there is no doubt that Western Canada will pro-
vide it for this great enterprise."
Col. Dennis said that having been in the company from
the start, he intended to remain in it and give every assist-
ance to the enterprise. With reference to power to operate
the mill, he said that this would be bought from the city of
Calgary, and the cost of power would be smaller than it
was in Medicine Hat, where natural gas was used. With
reference to the placing of the bonds, Col. Dennis stated
that he had taken this matter up with the National City Co.
in New York, and had received assurance that when the
details in the west had been completed there would be no
diflSculty about the bonds. The proposal is to place common
stock to the amount of $2,500,000, and to sell bonds to a
similar amount. There are two mills operating at the
present time in Calgary, a Robin Hood and a Western Can-
ada plant, and both of these have had very satisfactory
earnings. These are considerably smaller plants than the
new mill will be.
Manitoba TeI«phones Deficit
The Manitoba Government Telephones show a deficit for
the past year of $390,000. This is due to some extent to
the change from the manual to the automatic system, but
more particularly to the increase in wages and cost of ma-
terials. The former have increased 110 per cent, since
1914. and the latter 160 per cent. It is stated that this
deficit in operating expenses will be met by surpluses of
other years and by the depreciation fund.
W. H. Cross has been elected vice-president of the
Home Investment Co., taking the place of P. C. Mclntyre,
who recently died. Another new member of the board of
this company is Geo. W. Allan, K.C.
Taxes imposed in Manitoba for running municipal gov-
ernments was $16,078,985, according to statistical informa-
tion compiled by the Department of the Municipal Commis-
sioner, E. M. Wood. The total population of Manitoba to-
day is 541,466. This means that every man, woman and
child in the province is assessed a tax of $29 annually for
municipal purposes.
STANDARD TRUSTS BUSINESS INCREASED
Notwithstanding a substantial increase in business, the
profits of the Standard Trusts Co., Winnipeg, were lower for
1920, being $101,822, as comp&red with $111,004 in 1919. The
increased cost of administration and general expenses were,
no doubt, the reason for this, as the same tendency has been
apparent in other trust companies' reports. A substantial
balance was brought forward from the previous year, how-
ever, so that the balance for distribution was $128,468, as
compared with $116,645. The usual dividend of 9 per cent,
was paid to shareholders a«d a balance of $38,468 was carried
forward.
The Standard Trusts Co. is one of the most important
trust companies operating in the west. According to the
latest statement estates under administration amount to
$12,244,615, while clients funds held in trust total $1,159,964.
The company is also trustee for bond issues amounting to
$10,000,000. Total assets are now $16,438,282, as compared
with $16,196,331 at the end of 1919.
NORTH AMERICAN LIFE CONTINUES SUCCESSFUL
CAREER
The North American Life Assurance Co., which established
a firm foundation long since, continued its career of success in
the Canadian life underwriting field in 1920. Business issued
and revived in 1920, amounting to $24,363,971, was over
$2,150,000 in excess of the previous year, and brings the total
business in force to $99,600,473, the highest mark yet reached
in the history of the company. Some conception of the scope
of the company's business is to be found in the fact that
during the past year there was pvAA to policyholders and
beneficiaries over $2,163,000. This amount included $424,948
paid as dividends, while in contrast to this it is noted that
only $6,000 was paid to guarantors. The death losses in-
curred during the year amounted to $650,995, being some-
what less in amount than for the previous year. The presi-
dent, L. Goldmpjn, in his address to the policyholders at the
recent annual meeting made the announcement that the same
scale of dividends will be continued to policyholders in 1921.
Of the total liabilities, policy reserves now amount to $16,-
793,929, and in addition there is a net surplus of $2,609,827.
The success which has attended the efforts of the com-
pany is readily apparent from the following figures: —
1920. 1911.
Net premium income $ 3,378,602 $ 1,653,832
New business 24,363,971 6,129,426
Total assets 20,041,882 12,313,107
Insurance in force . 99,600,473 45,849,545
J. B. McKechnie, genei-al manager of the Manufac-
turers Life Insurance Co., in an address before the Young
Men's Club of the Toronto Board of Trade on January 24,
compared life insurance with fire insurance, and pointed out
that fire insurance maintains a uniform risk, whereas a
hazard in life insurance increases with the age of the policy-
holder. He stated that there had never been a failure of a
life insurance company in Canada as regards policyholders.
Life insurance companies had to pay out twenty million
dollars in claims resulting from the war and thirteen million
dollars owing to influenza.
January 28, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
of Canada
Address: Corner Church and Court Streets. Toronto. Ontario. Canada.
Telephone: Main 7404. Branch Exchange connecting all departments.
Cable Address: "Montimes. Toronto."
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The Monetary Times was esUblished in 1SG7. the
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Journal of Commerce.
The Monetary Times does not necessarily endorse the statements and
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PRINCIPAL CONTENTS
EDITORIAL: pAGE
The Scope of Insurance Companies 9
Banking- Results in Scotland 9
The Rewards and Costs of Building 10
Speculation and Failures 10
Special Articles:
Health and Accident Features in Life Policies 5
Consider Borrowing Powers of Loan Companies. ... 7
Fire Insurance Costs and Commissions (Letter to
the Editor) 7
Municipal Taxes in Winnipeg 8
What the Forests Mean to Canada 14
Prices Changing With Phenomenal Rapidity 18
Right of Grain Brokers to Recover Losses 34
Eflfect of Section 167 of Bills of Exchange Act 34
Weekly Departments:
News of Industrial Development in Canada 3(5
News of Municipal F'inance 40
Government and Municipal Bond Market 42
Corporation Securities Mai-ket 46
The Stock Markets 48
Corporation Finance 50
Recent Fires 52
THE SCOPE OF INSURANCE COMI'ANIKS
complications, is not desirable, as it adds to the difficulties of
management and also to the feeling of dissatisfaction which
is such a prominent feature of public opinion at the present
day.
PROVISION for the writing of lire and casualty business
by life insurance companies, and vice versa, is the ob-
ject of an amendment to the insurance laws of Canada, pro-
■posed by G. D. Finlay^on, superintendent of insurance. The
draft amendment was fully described and discussed o-n
January 26 by H. R. Stephenson, general manager of the
Crown Life Insurance Company, before the Insurance Insti-
tute of Toronto. The proposal has been only slightly dis-
cussed, and some managers are scarcely aware of it. Yet
such a measure would be far-reaching in its potentialities,
though it is not supposed that it would immediately lead to
many new departures.
The situation is complicated by reason of the already
intricate system of control of the insurance business in
Canada. The maintenance of separate funds for the differ-
ent lines of business, and the allocations of the surplus over
liabilities to policyholders, are two of the questions which
must be considered. Then again there is its relative effect
oil Canadian, British and foreign companies respectively,
and on the other hand its possible effect on the ability of
Canadian companies to secure licenses in other countries.
The fullest consideration and discussion should therefore be
given to such a measure before it reaches parliament, so
that the insurance companies may appreciate its importance
to them.
It is understood that the superintendent and not the
companies has initiated the proposal, having in mind a pos-
sible reduction in the cost of writing business. With such a
motive therefore the superintendent represents the public,
and the companies will gladly concur in any measure which
holds forth a reasonable prospect of attaining this end.
Whether a reduction in costs would be achieved by the
amendment, or whether the same purpose could be attained
indirectly by making possible greater strength and reduction
of overhead expenses, is still to be determined. Tinkering
with the Insurance .Act. especially the erection of still more
BA.NKING RESULTS IN SCOTLAND
IX view of the similarity between the Canadian and Scottish
banking systems, reports of Scotland's banking practice
are always received with interest here. The Commercial
Bank of Scotland, one of the important banking institutions
in the British Isles, has just issued its annual report for the
year ended October 31, 1920, showing a position which may
be taken as fairly representative of the banking situation
overseas. During the past two years, the Commercial Bank
of Scotland has made good progress, total assets increasing
from £37,805,283 at the end of October,' 1918, to £51,241,596
at the end of October this year. Paid-up capital
has increased from £1,000,000 to £1,750,000, while re-
serves have advanced £250,000 to £1,000,000 in the
period mentioned.
Deposits show a large growth, now being £41,096,567, as
compared with £30,698,529 -in 1918. Notes in circulation
have increased from £3,307,838 to £4,350,944. Under loans,
the following comparisons are shown: Money in London at
call and sHkrt notice, £3,430,347 in 1918, and £5,332,423 for
1920; loans on securities, £703,958 in 1918 and £1,340,586 for
1920; bills discounted, including British government treasury
bills, £11,268.826 in 1918 and £6,465,766 for 1920; advances
on accounts, £4,089,476 and £13,775,353 for 1920.
The Commercial Bank of Scotland has now 195 branches
throughout Scotland, as compared with 174 two years ago.
It also has a branch at London, Eng., and has numerous cor-
respondents thi-oughout the British Isles, colonies and foreign
countries. The Canadian correspondent of the institution is
the Imperial Bank of Canada.
The National Bank of Scotland, another of the more
important Scottish banking institutions, has issued its an-
THE MONETARY TIMES
Volume 66.
nual statement covering the twelve months ended October 31,
1920, showing a healthy progress. Over a period of two
years, total assets have grown from £37,131,051 to £44,042,-
667. Paid-up capital has increased from £1,000,000 to £1,-
100,000, while the reserve fund has been advanced by the
sum of £100,000 to £1,000,000. Deposits now stand at ap-
proximately £37,000,000, as against £30,594,495 at the end
of October, 1918, while note circulation has increased from
£3,167,677 to £3,798,877.
Cash assets have advanced to the sum of £6,028,528 from
£4,095,276. A comparison of the loans accounts shows the
following results : Loans on call in London, £6,208,468 for
1920, and £5,355,690 for 1918; British government securities,
£11,212,427 for 1920, and £8,064,927 for 1918; bills dis-
counted, £3,6.61,296 for 1920, and £9,044,845 for 1918; ad-
vances on accounts, £13,922,381 for 1920, and £6,671,152 for
1918. With regard to the bills discounted, the 1918 figure
includes £7,823,500 British treasury bills.
THE REWARDS AND COSTS OF BUILDING
SOME building will, it is anticipated, be carried on in 1921.
It is more than likely however, that public housing com-
missions which in 1919 and 1920 failed to ma^ke any showing
in the face of adverse conditions, will retire from the field.
Much public money has been risked for this purpose, and
some of it may be lost. Until such time as building costs
come down, however, there is little chance of a drop in the
value of property. Labor costs show no decline as yet, and
while materials are lower, the decrease is a very small fi-ac-
tion of the total cost. The present level of rents and values
can scarcely be cut until the reduction in costs is sufficient
to place upon the market new structures at a lower price.
That the increase in rentals during the past few years
was low compared to the increase in costs and in prices
generally, is shown by the results of an investigation made
in Winnipeg, and shov^Ti on page 29 of this issue. Rents
in Winnipeg in October, 1920, averaged 35 per cent, higher
than at the beginning of 1914, while foodstuffs were 110 per
cent., and building materials 180 per cent., higher The gen-
eral impression is that the increase in rentals has been more
than this, but this is due to the fact that in 1914 they de-
creased about 40 per cent., so that they practically doubled
between the end of 1914 and the end of 1920. Foodstuffs
and building materials, on the other hand, commenced to go
up in price throughout 1914. It is apparent therefore that
a large part of the excessive increase in building materials
must be wiped ovit before new houses can profitably be placed
upon the market.
The relation between rentals and realty values is direct.
A return of 10 per cent, is commonly recognized as suitable,
after paying taxes, this being interest plus depreciation.
The high rates of interest prevailing during the past two or
three years has possibly raised this a little. The comparison
of net income with investment is a mental operation which
is performed consciously or unconsciously by every careful
buyer.
SPECULATION AND FAILURES
LET a business man take a hundred dollar flier in the
market just for fun of the thing, and the world
begins at once to check up on him. If he has notes at the
bank the president calls him into the back room and tells him
all about it. The mercantile agencies begin to report him as
'suspicious' and representatives of his creditors drop in to
look the ground over. No matter how shrewd he may be,
once it is known he is speculating he is looked upon as un-
safe. And yet a recent table of business failures put out by
Bradstreet shows that speculation accounts for only .7 per
cent, of the total failures of business men in the United
States. On the other hand 'incompetence' is responsible for
38 per cent, of the failures."
In some comments on this comparison of speculation with
other causes of failure, 0»j- Paper, published by the Grain
Dealers' Fire Insurance Co., says: "This is not an argument
for speculation. We merely desire to call attention to a
condition in our business life that receives too little atten-
tion. We often say that a business lacks system, doesn't
know how to advertise, has poor equipment, or runs witli sec-
ond grade help, but we seldom say when we meet these things
that the proprietor is incompetent, and yet this is the classi-
fication he should draw. When 38 per cent, of business
men go under because they don't know how to run their
establishments, it is time that we ceased worrying so much
about the speculator and gave more heed to competence in
business. We are interested in this subject because we know
that incompetence has a direct bearing on burning ratio of
the risks we insure. A well equipped systematized office nine
times out of ten is connected with a well kept, carefully
handled elevator. On the other hand a disoi'derly office gen-
erally means a disorderly elevator. A well kept elevator may
sometimes burn while the disorderly house across the way
will have to be torn down, but given a hundred elevators of
each class and the disorderly houses will show much heavier
loss ratio. This is the reason why we are so much in favor
of better business practices, better equipped offices, more sys-
tem. They mean a lower loss ratio and consequently a lower
insurance cost."
What solution has Manitoba, which so strongly opposed
the increase in railway rates, to offer for its $390,000 public
telephone deficit ?
The cold weather makes it unnecessary for the Ice Board
to commence operations. This board, according to reports,.
was being organized to stabilize the temperature, and there-
by save the ice industry from melting away.
The immediate oversubscription of Ontario's $10,000,-
000 loan, at a margin of one and a half per cent, pi'ofit to
the underwriters, illustrates the strength of the Canadian
bond market at present. In vievv' of this condition might not
the province have secured a better price than a 6.28 per
cent, basis?
Now that Victory bonds are near par again, it would
be interesting to know who was the lucky party that bought
some at 89 on November 29th.
The old-established custom of "hazing" the new bank
junior is still observed. The head office of the Canadian
Bank of Commerce recently received the following document,
presumably sent in by a faithful aspirant: —
"To Whom it May Concern:
"I hereby certify, vow and declare that to the best
of my ability I have faithfully carried out the reminders
and instructions demanded of me by the lawful officers of
the Canadian Bank of Commerce, and Mr in
particular.
"And I do hereby swear that said above instructions,
i.e., the winding of the combinations on the outer door of
the vault — twenty turns to the left, and forty-nine similar
turns to the right, all done in a conscientious and commend-
able manner, — were not unheeded by me, but that I did so
truly and faithfully carry out above said instructions, as
given me by Mr , a duly appointed officer of the
Canadian Bank of Commerce.
"To this I swear, so help me God.
"Second Junior and Runner,
"Dated at July 20, A.D. 1920."
January 28. 1921
THE MONETARY TIMES
The Best Way
DON'T risk loss by enclosing
cash in your letters. You
will find the Money Orders
issued by this Bank a safe and
convenient way of paying your
out-of-town accounts.
Our Teller can issue them without
delay at the same cost as Post
Office or Express Orders.
IVe ivelcome ^our business
THE CANADIAN BANK
OF COMMERCE
Head Office
Paid-up Capital
Reserve Fund
$15,000,000
$15,000,000
Real Banking Service
All branches of this Bank are in
a position to give the most com-
prehensive Banking service.
Government and Municipal
Securities are dealt in. Foreign
Exchange bought and sold.
Money Orders and Letters of
Credit issued. Collections made
on all points in Canada or
overseas.
IMPERIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
Helping
Humanity
DETWEEN the wheat on our prairies
and the daily bread of the people
of this country and of distant lands runs a
long chain of operations, each link of
which is strengthened by banking services.
For 55 years this Bank has been privi-
leged to furnish a substantial part of the
financial energy necessary in the growth,
transportation and marketing of Canada's
vast crops.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE . TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET. E.C.2
1' H E MONETARY TIMES
Volume 66
PERGONAL NOTES
A. N. McTavish, who has been with the Insurance De-
partment, Ottawa, for some years past, succeeds M. P. Langs-
taff as actuary of the Dominion Life Assurance Company.
John Weir Brown, superintendent of the Royal Ex-
change Assurance Company at the head office for Canada,
Montreal, has been
appointed to the
position of assist-
ant manager for
Canada. This is a
new position and
has been created '
consequent on the
urowth of the com-
pany's business in
the Dominion,
under the manage-
ment of Arthur
Barry. Mr. Brown
has been connected
with the business
of fire insurance
for past twenty-
tive years. He
commenced his in-
s u r a n c e career
with the old
Phoenix of Lon-
don, serving that
company for eigh-
teen years, during
which period he
was its branch manager at Winnipeg, he afterwards joined
the Royal Exchange, in which institution he has now attained
an important position.
Joseph F. Stewart, of Stewart. McNair, Reid and Com-
pany, investment
brokers, Toronto, has
been elected a mem-
ber of the Toronto
Stock Exchange and
will represent his com-
pany on the floor. The
above firm is the re-
sult of the broaden-
ing policy of the
original company of J.
F. Stewart and Com-
pany. G. K. McNair
has been associated
with Mr. Stewart
since the inception of
the company. Duncan
C. Reid was just ad-
mitted to partnership
recently. Mr. Reid has
liad wide experience
in financial affairs both
i]i Toronto and Mont-
real having been with
the Union Bank of
Canada for some four-
teen years. He is a fellow of the Canadian Bankers' As-
sociation.
George Burditt, who for the past five years has been
in the service o^ the Continental Life Insurance Company
as manager for Manitoba, with office at Winnipeg, has been
appointed to a more important position in Toronto, in con-
nection with the business in Ontario. J. H. Woodhead has
been appointed to succesd Mr. Burditt.
Senator George Lynch-Staunton, K.C, Hamilton, and
A. W. Marquis, of Marquis and Pepler, St. Catherines, Ont.,
have been appointed to the directorate of the Imperial Trusts
Company of Canada, Toronto.
LiEUT.-CoL. Earnest Wigle, K.C, of Windsor, Ont.,
has been elected to the directorate of the Trusts and
Guarantee Company, Limited, Toronto, to succeed the late
Mathew Wilson, K.C, of Chatham, Ont.
Roy M. WoLViN, president of the Dominion Steel Cor-
poration has returned to Canada after an absence of more
than a month in England. Mr. Wolvin had very little to say
regarding the British Empire Steel Corpoi-ation. On the
general situation he said : "I was very much pleased to find
that there is a large amount of money in England available
for investment, and I believe that as quickly as exchange
approaches normal we will find a ready supply of British
capital for Canada, and I am satisfied that Canada holds first
pice in the eyes of the British investor."
OBITUARY
Rt. Hon. A. L. Sifton, K.C, secretary of state for
Canada, and conspicuous in the world's affairs for his at-
tendance at the Peace Conference in Paiis, died in Ottawa
last week. He was educated in Wesley College. Winnipeg,
and Victoria University, Cobourg, Ont., and practised law in
the west for many ye&rs. He was a member of the old.
Northwest Assembly, and later of the Alberta Legislature.
His entry into federal politics took place in 1917.
BANK BRANCH NOTES
The follow-ing is a list of branches of Canadian banks
which have been opened recently: —
Walkerville, Ont. (Main Wal-
kerville) Bank of Montreal
Toronto, Ont. (East Da^nforth) Dominion Hank
East London, Ont Home Bank of Canada
H. A. Thomson, manager of the Molsons Bank at Port
Arthur, ha« been transferred to Lachine, Que., and will be
succeeded by E. F. Carre, of Lachine.
C A. Bonnallie, manager at Fernie for the Canadian
Bank of Commerce, has been transferred to Vancouver.
George Mair, who was manager of the Traders Bank
of Canada since its opening for business at Windsor, Ont.,
in 1893, to its amalgamation with the Royal Ba-nk of Canada
in 1912, and since then manager of the latter bank, has re-
tired. Chas. W. Morris, who was manager of the Royal
Bank of Canada in Sudbury up to April l&st, and since then
assistant manager at Windsor, has received the appoint-
ment as manager for Windsor.
J. C Munro, for five years manager of the branch of
the Canadi&n Bank of Commerce at Cayuga, but recently
promoted to the position of an assistant inspector of the
bank for Ontai'io, was tendered a banquet by his friends in
Cayuga.
C E. Brien, who for several years has been manager of
the Royal Bank of Canada at Niagara Falls, Ont., has been
transferred to Owen Sound and will be succeeded by C. A. R.
Warren, of Hamilton.
The Sterling Bank announces the following: J. B. Thomp-
son, who was manager at Newtonbrook,'Ont., has been trans-
ferred to Minesing, Ont., as manager. H. E. Laverty, who
was E't head office for a short time has been appointed acting-
manager at Newtonbrook. H. P. Hayes has taken over the
management of Mille Roches, Ont., branch. C. F. Perkin,
who was acting-manager there has returned to Coi-nwall to
his position as accountant. L. B. Lett has been a^ppointed
acting-manager at Queensville, Ont.
The branch of the Royal Bank of Canada at 21 King St.
West, Hamilton, was damaged by fire.
January 28, 1921
THE MONETARY TIMES
luiuiiiuiiiuiiuiiiuuuuiiiuiiiotiniiiQnaiBio^
I The Sterling Bank \
j OF CANADA |
tiiiiiiiiiiiiriiiiininiiniiiiiimiinirinimiiiiiiiniinniimiiiuuiiDiiiiniiimiiiniiiiniiiiiiiiuiiiiiiimiimnnmuuiiiiiiuiiiniiiiumm^
Besides being equipped to handle foreign ex-
change speedily and intelligently, our Foreign
Department gives a personal attention to each
client.
Head Office
KING AND BAY STREETS, TORONTO
The National Bank of Scotland
Limited
Incorporated by Rnyal Charter ytntl Act of Parliament. Established 1S25
Capital Subscribed /5,000.000 525,000,000
Paid up 1,100.000 5,.S0O.00O
Uncalled 3,900,000 19,500,000
Reserve Fund 1 ,000,000 5 000,000
Head Office - EDINBURGH
WILLIA.M CARNHOIB. General Manager. GEORGE A. HUNTER, Sec.
LONDON OFFICE— 37 NICHOLAS LANB, LOMBARD ST., E.G. 4
T. C. RIDDELL, DUGALD SMITH.
Manager Assistant Manager
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London, are
retired on terms which will be furnished on application.
REAL ESTATE
If you are burdened with
the charge of property
belonging to an Estate,
you may free yourself from
the details and drudgery
of its care by placing its
management in the hands
of the Company's Real
Estate Department.
THE BANKERS
TRVST GOMB\NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
(rommon>x»ealtb Banh of Hu^tralia
All cLisscs of GENERAL AND SAVINGS BANK busir
acted in all the principal cities and towns of Australi:
London.
JAS. KKhh.
Deputy G
DENISON MILLER.
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
*^W^
Bureau of
Canadian
Information
nPHE Canadian Pa-
cific Railway,
through its Bureau
of Canadian Infor-
mation, will furnish
you with the latest reliable information on
every phase of industrial and agricultural
development in Canada. In the Reference Li-
braries maintained at Chicago, New .York and
Montreal are complete data on natural resources,
climate, labor, transportation, business openings,
etc., in Canada. Additional data is constantly
being added.
No charge or obligation attacties to this service.
Business organizations are invited to make use
of it.
Canadian Pacific Railway
Department of Colonization and Development
165 E. Ontario St.
Chicago
335 Windsor Station
Montreal
1270 Broadway
New York
THE MONETARY TIMES
Volume 6G.
WHAT THE FORESTS MEAN TO CANADA
Latest Developments Show Increased Command of Foreign
Markets, But Suggest Need for Conservation
FOREST products are an item of increasing importance in
the external trade in Canada. Government returns cover-
ing the twelve months ending August, 1920, place the value of
all domestic products exported at $1,219,523,896. As was
pointed out in the Canadian Bank of Commerce Commercial
Letter recently, $267,480,144, or nearly 22 per cent., represents
the exports of wood, pulp and paper, chiefly to the United
States. The volume exported has increased steadily for sev-
eral years. During the twelve months in point, exports of
wood pulp have increased by nearly 8,000,000 cwt., or 80 per
cent., and of printing paper by 2,000,000 cwt., or 15 per cent.
This market, so far from contracting, shows every promise of
assuming greater and greater proportions and would seem to
be limited only by the extent to which Canadian forest i-?-
sources can be tapped without endangering the future supply.
Limits to Exploitation
Dominion and provincial authorities throughout Canada,
while drawing attention to the vast wealth latent in our for-
ests, have at the same time issued warning notes as to the
economic limits of forest exploitation, in view of the large per-
centage of natural as well as avoidable wastage and the impos-
sibility of estimating with any degree of accuracy the annual
increment in gro\\'i:h. The total wastage of timber every year
fiom fire, decay, windfalls and floods is estimated at nearly
2,500,000,000 cubic feet, which is appi'oximately 5 per cent, of
the standing merchantable saw-timber in Canada. The an-
nual pre-war cut of saw-timber was 900,000,000 cubic feet,
and of pulpwood over 200,000,000 cubic feet. The processes
of felling, ti'ansporting and milling reduce the output to about
40 per cent, of the cut in the case of saw-timber and 80 per
cent, in the case of pulpwood. The average volume exported
annually during the immediate pre-war period was the artiount
derived from a cut of 350,000,000 cubic feet of saw-timber and
100,000,000 cubic feet of pulpwood, or 39 per cent, and 50 per
cent, of the respective total cuts. This does not include the
large quantity of pulpwood manufactured in Canada into pulp
or paper and exported in these two forms. The proportion
between the output of saw-timber and that of pulpwood has
considerably altered during the last decade. The Dominion
Forestry Branch describes the situation as follows: —
"The consumption of timber for lumber manufacture has
decreased since 1912 and is still decreasing. The estimate of
the total supply is based on inaccurate and incomplete data;
the maintenance of the supply depends on the unknown incre-
ment rate and the very uncertain factor of loss through forest
fires. It is probable that the consumption will continue to de-
crease in the future as the source of supply moves back far-
ther from the lines of transportation each year. The cost of
lumber in Canada will probably increase until it becomes prof-
itable to plant potential forest land with commercial species,
and to pay for efficient protection and management of the
remaining forests. In the case of pulpwood the utilization is
increasing rapidly as supplies are being exhausted in the
United States. The United States is Canada's chief custom,-?r
for unmanufactured pulpwood, wood-pulp and paper, and with
the increasing consumption of newsprint and other naners
brought about by increased advertising, it would appear that
Canada's supply would be exhausted long before the four hun-
dred years obtained by an arithmetical calculation.
Higher Prices Mean Greater Care
"As long as forest products are comparatively cheap, as
they are in Canada at the present time, no extraordinary care
will be taken to protect and develop them. As the price of
these products increases, it will become more and more profit-
able to do so. The immediate steps necessary are connected
with protection from fire, insects, and fungus diseases, and
careless or destructive utilization. The regulation of cutting,
with a view to natural regeneration, is a more valuable means
of re-establishing forest areas in a new country like Canada
than any expensive system of replanting."
LANDED BANKING AND LOAN COMPANY
An all-round increase in business, together with an ad-
vance in earnings, are shown in the annual statement of the
Landed Banking and Loan Co., Hamilton, Ont. Loans on
mortgages at the end of 1920 stood at $2,967,025, compared
with $2,811,518 at the end of the previous year. Loans on
stocks and bonds are given as $139,677, as against $103,896.
Holdings of securities, including Dominion government
bonds are nearly $20,000 higher, at $477,780. The cash ac-
count is the only one to show a reduction.
Sterling and currency debentures outstanding have been
reduced by $18,550 to $693,875. Savings deposits have in-
creased from $949,882 to $1,015,277. Out of the earnings
for the year of $245,139, the regular 8 per cent dividend was
paid, and $40,000 was added to reserve, which account is
now within $35,000 of the paid-up capital of $1,000,000.
CENTRAL CANADA LOAN AND SAVINGS COMPANY
The report of the Central Canada Loan and Savings Co.,
presented at the annual meeting on January 18, shows net
profits for the year, after deducting charges of management,
interest on debentures and deposits, etc., of $212,348, as
compared with $210,822 previously. Added to this was the
balance brought forward fi'om 1919 of $124,202, making a
total for distribution of $336,551. The usual 10 per cent,
dividend was paid, and a special bonus of 3 per cent, from
profits eai-ned prior to January, 1917, leaving a balance to
be carried forward of $103,470 after donations to charitable
and other funds. The reserve fund, which now stands at the
same amount as the paid-up caiptal, viz., $1,750,000, was not
increased.
The president, E. R. Wood, confined his remarks to sub-
jects directly affecting the shareholders. He pointed out that
the assets of the company stand in its books at prices well
within their present market value. Deposits show a large
increase for the year, the total as at December 31 amounting
to $2,194,835.93, as against $1,824,318.55 on December 31,
1919, an increase of 20.31 per cent.
DOMINION BANK'S JUBILEE YEAR
Fifty years of business have now been completed by the
Dominion Bank. Its growth during this period is shown
by the following figures: —
1920. 1911. 1900. 1872.
Capital paid-up. $6,000,000 $4,702,799 $1,500,000 $834,544
Rest 7,000,000 5,702,799 1,500,000 50,000
Total deposits. 104,941,256 53,547,865 15,790,401 1,057,150
Loans and dis-
counts 79,526,480 40,492,726 12,710,912 2,104,033
Net profits .... 1,347,011 704,045 214,342 107,488
Total assets ..139,263,093 70,179,552 20,824,147 2,541,583
Nineteen-twenty was the bank's jubilee year, and was
an eventful one. An increase in profits from $1,256,053 in
1919 to $1,347,011 is indicative of the business prosperity of
the earlier part of last year, but the balance sheet has
maz'ks of the readjustment which took place in the latter
part. Deposits have decreased from $111,414,057 at the end
of 1919 to $104,014,256, as a result of the reduction in de-
posits not bearing interest, which represent largely the bal-
ances of the commercial and other institutions. Savings de-
posits, however, show an increase of more than $10,000,000.
Loans show no significant changes, as compared with 1919.
Despite reductions in some accounts, the bank's posi-
tion has been substantially strengthened. Liquid assets
show a ratio to liabilities to the public of more than 27%,
as compared with less than 259f in 1919. Immediately avail-
able assets are almost 51 ''■.'^r of the liabilities to the public.
January 28, 1921
THE MONETARY TIMES
16
LONDON JOINT CITY & MIDLAND
BANK LIMITED
The Right Hon. R. McKENNA
Ew.
Subscribed Capital
Paid-up Capital
Reserve Fund .
Deposits Uun« 30lf>, t9!0t
. £38,096,363
10,840,112
10,840,112
. 367,667,322
HEAD OFFICE I S. THREADNEEOLE STREET. LONDON. E-C :
rHoMEBANK'^CANADA-l
PAY WITH MONEY ORDERS
When you have to send money through the
mails buy a money order and you will then feel
secure that you have provided against any
chance of loss or misunderstanding. With the
money order you get a voucher that is as good
a receipt as your returned cheque would be
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s >
ESTABUSHED 1879
Alloway & Champion
Bankers and Brokers
Membera of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
HEAD office", WEYBURN. SASKATCHEWAN
Branches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart. Halbrite, Midale
GrifEn. Colgate, Panguian, Radville, Assiniboia, Benson,
Verwood, Readlyn, Tribune, Expanse, Mossbank, Vantage,
Goodwater, Darmody, Stoughton, Osage, Creelman and
Lewvan.
A GRNKRAI. BANKING BUSINESS TRANSACTED
H. O. FOWELL, General Manager
TH€ M€RCHANT5 BANK
Head Office : Montreal. OF CANADA
Established 1864.
Capital Paid-up, $10,029,622 Reserve Fund and Undivided Profits, $9,475,585
Total Deposits OOtk October, 1920) - Over $170,000,000
Total Assets (30tb October, 1920) - Over $209,000,000
H. i^o^
Board of Directort :
ONTAGU ALLAN Vice-President
Sir F. OrrO««-Lewis. Bart.
Hon. C. C. Ballantyne
V. Howard Wilson
Farquhar Robertson
Geo. L. Cains
Alfred B. Evans
Thomas Ahf.arn
LT.-COL. J. R. MOODIE
Hon. Lorne C. Webster
General Manager ■ - D. C. Macarow
Supt. of Branches and Chief Inspector : T. E. Merkett
General Supervisor - - - W. A. Meldrum
A. J. DAWES
E. W. Knekland
(jORDON M. McGjiEGOR
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending irom the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramsay and C. J. Crookall, Agents
London, England, Office, 53 Cornhill: J. B.Donnelly, D.S.O., Manager
Bankers io Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
16
THE MONETARY TIMES
Volume 66.
THE TRADE OUTLOOK
EXCHANGE QUOTATIONS
Some improvement in business is reported by mercantile
houses, but little hope of an appreciable recovery until
spring is found. The excessive number of failures taking
place indicates how apathy on the part of the buying public
is affecting the retail trade. During the week ended Janu-
ary 21 there were 71 failures in Canada, compared to 20
during the corresponding week last year. The decline in
wholesale prices has only slightly affected retail prices, where-
as substantial reductions will be necessary to attract pur-
chasers.
Bradstreet's report that dry goods are moving more
freely, clothing is still slow, although the situation is now
more favorable than it was two months ago. "Manufactur-
ing operations are also showing greater life, especially at
many of the larger factories. Financial difficulties are hold-
ing ba<;k others, however. Boots and shoes are selling on a
better scale than before the holidays. Rather significant at
this time is the statement of the manager of a large retail
store in Toronto who says that, not only is business good, but
the people are showing a strong desire for quality goods.
In fact, it is claimed that if they c&nnot get what they want
in the way of good materials, they will not buy, rather than
take anything inferior. In the iron and steel markets con-
ditions are regarded as favorable, and all comments are op-
timistic. The leather business is brighter, and dealers say
that there is a better demand coming for standard lines of
sole leather. Groceries are moving steadily, and the sugar
market is now on a stable basis, with wholesale prices to the
retailers at $10.71 per 100-pound bag. Hardware is in mod-
erate demand, with many price revisions downward."
. Reporting from Montreal, Dun and Co. say: "General
business conditions have not undergone any very material
change since last writing. Some manufacturing interests are
slow in showing improvements, but wholesalers as a rule
note a gradually impi-oving demand. The volume of dry
goods orders being received from travellers is encouraging.
A number of large buyers from points as far west as Van-
couver and as far east as Halifax have been in the market
this week, and, while more careful than ordinary in making
their selections, the aggregate of their purchases is never-
theless fair. The spell of Arctic weather has been helpful
to retail sales of seasonable heavy wear."
The Trade Bulletin, Montreal, reports that payments
have been a little slow since the first of the year, a l&;ger
portion of mercantile paper falling due since the beginning
of the year not being met at maturity, but most of it was
renewed, a portion by part payment. The outlook, however,
on the whole, is encouraging, as there are signs of improving
trade in the near future. In most departments of the whole-
sp.Je trade there is an increase in the volume of business, al-
though not nearly up to that usually experienced at this
period of the year. In wholesale dry goods, orders are com-
ing in from travellers, consisting of sorting as well as spring
goods, but the latter are below those of a year ago, as it is
asserted that many intending purchasers aa-e postponing
orders, anticipating a further decline in values. In any event
orders are not coming in as well as expected.
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended Ja^nuary 21, 1921,
in provinces, as compared with those of previous weeks and
corresponding weeks of last year, are as follows: —
U
uate. c 3 n! ii ^ . . _.
O fT S -^ -1 C2 '^ < "- •- -^
Jan. 21 ....15 35 6 3 5 1 4 2 0 71 20
Jan. 14 ....13 23 4 1 3 0 0 0 0 44 14
Jan. 7 ....15 14 3 2 3 1 2 1 0 40 11
Glazebrook and Cronyn, exchange and bond brokers,
Toronto, report local exchange rates as follows: —
Buyers. Sellers. Counter.
N. Y. funds 11 V2 pm 11 % pm
Mont, funds Par Par Vs to %
Sterling —
Demand $4.2750 $4.2850
Cable transfers 4.2850 4.2950
Bank of England rate, 7 per cent.
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways for the first thi'ee weeks
in January :■ —
Canadian Pacific Railway.
1921. 1920. Inc. or dec.
January 7 $3,303,000 $3,171,000 -t- $ 132,000
January 14 3,276,000 3,331,000 -f 55,000
January 21 3,196,000 2,837,000 + 359,000
Canadian National Railway.
January 7 $1,814,057 $1,642,208 -f $ 171,849
January 14 2,168,969 1,864,220 + 304,749
January 21 1,996,701 1,599,643 + 397,058
Grand Trunk Railway.
January 7 $1,958,441 $1,568,805 4- % 389,636
January 14 2,088,691 1,682,809 + 405,882
January 21 1,907,473 1,567,103 + 340,370
WEEKLY BANK CLEARINGS
The following are the bank clearings for the week ended
January 27, 1921, compared with the corresponding week
last year: —
Week ended Week ended
Jan. 27, '21. Jan. 29, '20. Changes.
Montreal $101,621,678 $129,845,123 — $28,223,445
Toronto 86,151,727 106,405,344 — 20,253,617
Winnipeg 49,574,950 ' 41,891,351 + 7,683,599
Vancouver 12,632,023 15,032.632 — 2,400,609
Ottawa 5,698,457 7,818,575 — 2,120,118
Calgary 7,096,249 7,361,910 — 265,661
Hamilton 5,152,976 5,901,890 — 748,914
Quebec 6,1.54,719 6,154,720 — 1
Edmonton 4,342,362 4,573,374 — 231,012
Halifax 3,838,564 3,664,093 + 174,471
London 2,786,763 3,142,221 — 355,458
Regina 3,775,695 3,156,393 -|- 619,302
St. John 2,993,242 3,073,710 — 80,468
Victoria 2,188,718 2,341,956 — 153,238
Saskatoon 1,525,.391 1,551,877 — 26,486
Moose Jaw 1,355,607 1,'377,605 — 21,998
Brantford 1,152,077 1,126,980 + 25,097
Brandon 626,011 535,227 -|- 90,784
Fort William 880,236 823,695 + 56,541
Lethbridge 568,363 628,798 — 60,435
Medicine Hat 454,404 404,139 + 50,265
New Westminster. 588,505 572,088 -f 16,417
Peterboro' 824,595 732,055 + 92,540
Sherbrooke 1,058,663 904,944 + 153,719
Kitchener 915,567 1,080,579 — 165.012
Windsor 2,373,916 2,532,536 — 158,620
Prince Albert 321,593 367.737 — 46.144
Dec. 31
.16
0 0 36 IS.
Totals
Moncton .
$306,653,051 $353,001,552
1,994,225
$46,358,501
January 28, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 1817)
PAID UP CAPITAL - ^tttm. 23,828,500.00
RESERVE FUND . . - - f ^S^A 16,375,000.00
RESERVE LIABILITY OF PROPRIETORS .Au^^kI^I 23,828,500.00
1«?i_^_^. ^ 64,032,000.00
AGGREGATE ASSETS 31st MARCH, 1920 -'vusi^ .--... $377,721,211.00
Sir JOHN RUSSELL FRENCH. KB. E.. General Manager
351 BRANCHES and AGENCIES in the Australian States. New Zealand. Fiji. Papua (New Guinea), and London. The Bank transacts every description
of Australian Banking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2.
Agrnts: BWK of .MONTREAL. ROYAL BANK OF CANADA
C S. GUNN & COMPANY
REAL ESTATE, INSURANCE, RENTAL AGENTS
805 Union Trust Building
WINNIPEG, MAN.
Members of Winnipeg Real Estate Exchange, Winnipeg Stock Exchange
Oborcb Edwards, F.C.A.
H Pbrcival Edwards W. Po.mk
A. GeoppRBV Edwards Oswald 1
T. J. Macnamara T. p. Gbc
K. A. MAPI- W. A. Lo
Arthur H. Edwards. F.C.A.
Morgan W. Hbrbert Tho.v
Jdwards Charlks E. WlllT
J. L. Atkinson
KF( John .M. E[)WAPii)!
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO ..
CALGARY . .
VANCOUVER
WINNIPEG ..
MONTREAL
CORRESPONDENTS
HALIFAX, N.S. ST. JOHN, N.B.
LONDON, ENG. PARIS, FRANCE.
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK, U.S.A.
-RICE & FIELDING, INC.-
FOREIGN FREIGHT FORWARDERS, CUSTOMS
BROKERS AND DRAWBACK AGENTS
81 VICTORIA ST.,
TORONTO
coDi;s
Cable Address Western Union Telephone
Ricefield A K C. Sth & 6th Edition^ Adelaide 935
OTHER OFnCES
S08 CORISTIRE BLDO.. 11 BROADWAN'. 40 CENTRAL St..
MONTREAL NEW YORK BOSTON
Enqulrks solicited In connection with either Export or Import business
THE
TOROiSTOGEAERAlTRUSTS
Corporation
NOTICE IS HEREBY GIVEN that the
Annual General Meeting of the
Shareholders of The Toronto General
Trusts Corporation will be held at the Head
Office of the Corporation, at the corner of
Bay and Melinda Streets, in the City of
Toronto, on Wednesday, the 2nd day of
February, 1921, at 12 o'clock noon, to
receive and consider the Annual Report
and Financial Statements of the Corpora-
tion for the year ended 31st December,
1920, to pass and confirm by-laws, to con-
sider amendments to existing by-laws, and
to elect Directors for the ensuing year, as
well as for the transaction of such other
business as may be brought before the
Shareholders.
By Order of the Board of Directors.
A. D. LANGMUIR,
General Manager
Toronto, January 18th, 1921.
THE MONETARY TIMES
Volume 06.
Prices Changing With Phenomenal Rapidity
Speed of Fall Exceeds Rate of Increase in War Years— Farm Products, Leather and
Textiles are Leading— May, 1920, was High Record, with Steady Decline Since— Average
now Back at Level of June, 1919— Comparison of Movement by Groups of Commodities
SINCE May, 1919, wholesale prices in Canada have been
steadily falling, and it is now certain that the move-
ment is a permanent one. As measured by the index num-
ber of the Department of Labor, Ottawa, which is based on
an average of 100 for the ten-year period 1890-1899, whole-
sale prices in recent years have been as follows: —
1913, December 137.1
1914,
1915,
1916,
1917,
1918,
1919,
137.6
162.2
207.5
257.1
288.8
322.7
1919.
1920.
344.4
261.1
326.4
320.8
355.2
340.0
242.4
236.5
286.6
226.1
267.3
256.3
399.7
328.6
377.8
231.8
224.7
230.4
247.6
317.6
338.7
356.5
352.8
390.2
214.4
228.1
.576.7
277.5
1920, May (.maximum) 356.6
1920, December 290.5
The changes by groups of commodities, between Decem-
ber, 1913, and December, 1919, and again between the latter
date and December, 1920, are shown in the following table:—
1913.
Grains and fodders 141.0
Animals and meats 188.4
Dairy products 166.9
Fish" 157.2
Fruits and vegetables 130.8
Misc. groceries and provisions.... 111.9
Textiles 136.6
Hides, leather, boots and shoes... 166.2
Metals and implements 113.3
Fuel and lighting 114.4
Building materials 141.6
House furnishings 128.1
Drugs and chemicals 111.5
Miscellaneous ' 148.7
All commodities 137.1 322.7 290.5
The movement in detail by months since the beginning
of 1919 is illustrated by the accompanying charts.
Another index number, compiled by Professor H.
Michell, of McMaster University, Toronto, gives the follow-
ing results: —
Index Number of 40 Commodities
1914.
January 120.9
February 120.4
March 119.9
April 119.3
May 119.3
June 118.8
July 120.
August 122.9
September 126.1
October 122.8
November 122.7
December 123.7
1918.
1919.
1920.
225.7
231.3
280.8
236.7
222.7
281.2
237.6
223.2
287.6
239.6
227.3
295.2
244.4
232.6
298.3
250.4
238.3
296.9
248.3
250.8
292.9
251.5
262.7
274.4
252.
250.7
254.5
245.5
250.
242.1
246.8
251.1
233.1
245.6
259.2
221.6
Average prices 1900-1909, 100.
Professor Michell's index number is based on the price.-?
ruling at the end of the month in the Toronto markets of
forty commodities, twenty foodstuffs and twenty manu-
facturers' goods. The twenty foodstuffs are made up of
flour, beef, mutton, pork, bacon, lard, whitefish, butter,
cheese, sugar, rice, tea, coffee, potatoes, beans, canned
tomatoes, canned peas, oatmeal, eggs and tapioca. In the
list of manufacturers' goods are included rubber, wool,
cotton, hides, leather, iron, galvanized sheets, steel, silver,
lead, copper, tin, zinc, cement, paints, coal oil, pine, oak,
maple and newsprint paper. This list is constructed with a
view of including those commodities which are in most
general use in the community. The price of each food ruling
at the end of every month is calculated as a percentage of
the average price of the same commodity during the decade
1900 to 1909, and the total of all these percentages is then
divided by forty to give the average of all the indices.
Decline Has Been Sharp
Writing recently in the Toronto Globe on prices. Pro-
fessor Michell said: — "The year 1920 will be memorable for
having seen the long-expected drop in prices after the great
rise during and after the European war. An index number
based on forty commodities, twenty foodstuffs and twenty
manufacturer's goods, the average price during the period
1900 to 1909 of these goods being reckoned as 100, reached
its peak in May, standing at 298.3. The subsequent recession
has been sharp, and for a similar drop we must go back to
the year 1865, when prices dropped 26 per cent, in six months
in the United States after the Civil War, while prices in
Canada have dropped 25.7 per cent, since May.
"That this drastic revision of prices was inevitable was,
of course, quite apparent to all, indeed immediately after the
break on the New York Stock Exchange on November 12,
1919, it was simply a matter of a few months before a re-
cession in wholesale prices was due, and those who predicted
this for the coming spring were less daring than appeared
at the time. With inventories of goods constantly rising in
value, it became inevitable that the banks could not possibly
continue to carry tlie burden much longer, and would be
forced out of consideration not only for their own position
but for the good of trade in general to cut down drastically
on their accommodation to customers. This, coupled with a
very definite revolt on the part of the buying public against
high prices of necessities, completes the story of the fall
January 28, 1921
THE MONETARY TIMES
Saskatchewan General Trusts
Corporation, Limited
Head Office : Regina, Sask.
Executor Administrator Assignee Trustee
Special attention given Mortgage Investments, Collections,
Management of Properties for Absentees and
all other agency business.
BOABD OF DIKECTOBS:
W. T. MOLLARD. President G. H. BARR. K.C.. Vic«-Presidem
H. B. Sampson K.C. A. L. Gordon. K.C. J. A. M. Patrick. KC.
David Low, M.D. W. H. Duncan J. A. McBride
Chas. Willoughby William Wilson
B. E. MURPHY. General Manager
Official Administrator for the Judicial District of Weyburn
(Trustee under Bankruptcy Act)
Providing for Education
In times of prosperity make certain that tlie education
of your children will be provided for in case of a reversal of
fortune. By placing a trust fund with us for investment,
an income can be proviiled to begin at any time and be
administered under any conditions you see (it to incorporate
in the agreement. Write us for particulars.
Chartered Trust and Executor Company
46 KING STREET WEST, TORONTO
HON. W A. CHARLTON. MP.,
•lOHN J. GIUSON. .ManaginR Dii
Our Care of
Real Property
Owners of real property often find that
personal management of their holdings
takes more time and effort than they can
well afford
Many have escaped the tedious detail
work such management involves by en-
trustingour Real Estate Department with
the care of their property.
Real Estate Department
National Trust Company
Limited
Capital Paid-Up $2,000,000
Reserve - - $2,000,000
18-22 KING STREET EAST - - TORONTO
Where There is No WILL There is No WAY
ry legal de
in settling .ii
1 know what intestacy means? The dictionary will tellyou.
conseq
V
and a l«v,,v> ..... ^.......... ...
But what it really means to those you wish fo protect cannot
be described so shortly. It cannot be IMAGINED WITHOUT
ALARM.
Every man and woman should make a Will at the earliest
possible moment, and should appoint The Lnion Trust Company as
executor. Then his or her wishes will be carried out faithfully.
Call and see us or phone or write and we will send an officer
of this Comnany to see you. In any event, write for our booklec.
•• Why a Will •• It is intcrestins
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS ita
Winnipeg TORONTO London, Eng.
Discrimination
When an experienced manager is required in your busi-
ness do you trust to chance or to your sound business
judgment ?
In selecting an executor for your estate the utmost dis-
crimination is necessary, because your selection is vitally
important to those who are closer to your heart than is
your business.
"The executor for your estate" is
The Canada Trust Co^^vpany
London St. Thomas Windsor Winnipeg 5
Regina Edmonton Toronto
The impartiality of the acts of a TRUST COMPANY and its freedom
from improper influences are some of the adv.inlage£ offered in
The Management of Estates
We will Kliidly discuss this matter with you
CAPITAL, ISSUED AND SUBSCRIBKD ..$1,171,700.00
PAID-UP CAPITAL AND RESERVK 1.172,00000
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
IIKAD OFI-ICF. : WIXNIPKG, CAN.
BRANCHES :
Do Not Put Off Until To-morrow
that definite arrangement for tlie distribution of } out Estate
by an Elxecutor or Trustee having the requisite responsi-
bility and experience to ensure jour wishes being satisfactor-
ily carried out .Appoint to-day as your Executorand Trustee
THE CANADA PERMANENT TRUST COMPANY
Paid-up Capital
Sl.OOO.OOO
W. G. Gooderham
Col. A. E. Gooderham
F. Gordon Osier
E. R.C.Clark
Manager,
DIRECTORS
TORONTO STREET
TORONTO
R. S, Hudson John .Massey
J. H. G. Hagarty John Campbell. S.S C.
George H. Smith William Mulock
n George W.Allan. K.C. M. P.
Pntario Branch: A. E. Hessin
20
THE MONETARY TIMES
Volume 66
O
YEAR
January 28, 1921
THE MONETARY TIMES
INTEREST
RETURN
INVEST YOUR SAVINGS
in a 5y2% DEBENTURE of
The Great West Permanent
Loan Company
SECURITY
Paid-up Capital $2,413,018.81
Reserves 1,050,000.00
HEAD OFFICE, WINNIPEG
BRANCHES: Toronto, Regina, Calgary,
EdmontOD, Vancouver, Victoria ; Edinburgh,
Scotland.
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building. Lomlon. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PURDOM. KC. President NATHANIEL MILLS. Manager
London and Canadian Loan and Agency Co., Limited
Established 1873 .'>■ VWN'Vt: ST., TOKON'TO
Paid-up Capital, $1. -250.000 Rest. $950,000 Total Assets, $5,085,872
ItebentnreH issued, one hundred dollars and upwards, one to five years-
Best current rates. Interest payable half-yearly. These Debentures are an
Authorized Trustee Investment. Mortg.ige Loans made in Ontario, Mani-
toba and Sask.itchewan.
WILLIAM W EDI), Secretary V. B. WADSWORTH. Manager
SIXTY-FIVE YEARS
is a lonfi time in the history of this youns Canada of ours, yet during
all that period we have been safeguarding and assisting in the ircreasing
of the savings of many thousands of Canadians. The steady progress
the Corporation has made bears testimony not only to the confidence
investors have in this old institution, but also to the unexcelled facilities
we extend to depositors-
Interest allowed at
THREE AND ONE -HALF
per cent, per annum, paid and compounded half-yearly.
The Corporation makes a special feature of Savings Accounts, and
welcomes the small depositor.
Canada Permanent Mortgage Corporation
14-1& TORONTO STREET
TORONTO
Paid-up Capital $6,000,000.00
Reserve Fund (.earned) 5.750.000.00
THE
Ontario Loan
& Debenture Co.
LONDON iNCOItPORATED 1870
CAPITAL AND UNDrviDBD Profits
Canada
$3,900,000
510/ SH
2/0
ORT TERM (3 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
511
JOHN McCLARV, President
A, M. SMART. Manager
r^VER 200 Corporations,
^^^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office, No. 13 Toronto Street
Capital Account. Iii;'i4.5.-M».00 Reserve Pund. »6:«.»0«.00
Total Assets. 83.219,IM.8«
President. WtLLINGTON FRANCIS. Esq.. K,C.
Vice-President, HERBERT LANGLOIS. Esq.
Debentures issued to pay 5%. a Legal Investment for Trust Funds.
Deposits received at 4",. mterest. withdrawable by cheque.
Loans made on improved Real Estate on favorable terms.
■WALTER GILLESPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investiiieiit in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipahties.
Inquiries Incited
General .Manager Llent.-t'ol. e. H. DORRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and OfiBcial Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office
Swift Current, Saskatchewan
JOHN R LITTLE. Managing Director
THE MONETARY TIMES
Volume 66.
which began in June, and the end of which we have not yet
seen.
Wide Fluctuations
"In reviewing the list of commodities included in the
index number, some rather amazing fluctuations are seen.
For instance, raw rubber, the average price of which for the
decade IDOO to 1909 was !(;i.04 per lb., has fallen to 19 cents
in 1920. Raw hides, whose average price during the same
period was 9>/4 cents per lb., have fallen to 7 cents, having
reached their maximum price of 35 cents in October, 1919.
Raw cotton, which reached its peak of 41 'o cents in March,
1920, receded to 15 cents per lb. in December. Oak, which
reached .$270 per 1,000 feet in April, 1920, had fallen to $135.
In the foodstuffs also notable declines took place. Granu-
lated sugar, to take a well-known example, stood at $24.21
per 100 lbs. in July, 1920, and had fallen below $10.71 by the
end of the year. Potatoes, which stood at $7.75 per bag
in April, had fallen to $1.85 in December. Rice, reflecting in
large measure the extraordinary fall in silver, fell from 15
cents per lb. to 7 in November. Beef, dressed hind-quarters,
which was selling at $34 per cwt. in June, had reached $23
in November.
"The list might be continued through practically every
commodity of every-day use. The revision of prices has
been most drastic, and there is every reason to expect that
it will continue with unabated vigor at least until next sum-
mer, when the deflation of credit, and to a less degree of cur-
rency, will have worked itself out, and the banks will be once
more in a position to stabilize the markets. That this shak-
ing out will be of the greatest benefit to the country in
general cannot be doubted.
The Financial Structure
"That the world is meeting this period in good shape is
now apparent, and it is probable that we may be fairly con-
fident that no very serious breaks in the markets will take
place. It is undoubted that this stability is due in large
measure to the Federal Reserve system in the United States,
and without its wise and restraining influence we should
have experienced all the disasters of a financial panic of
most serious proportions. By its drastic curtailment of
money for Wall Street trading it laid the way for a less
severe but none the less necessary deflation of commercial
credits. Without the co-ordinating influence of the Federal
Reserve Board this would have been practically impossible,
and the utter confusion of the panic of 1907 would have
been seen once more in even more serious proportions. But
by its action in reducing credits it has made imperative the
revision of price inventories, and at last the deadly "vicious
circle" has been stopped in its mad career and "has been
forced, if we may use the expression, to uncoil itself.
"The pinnacle of the spiral up which this vicious circle
of inflated credits, inflated currency, inflated prices and in-
flated wages had been seemingly ceaselessly pursuing its
course, was definitely reached in May of 1920, and has now
changed into a circle of deflated credits, deflated currency
deflated prices and deflated wages. This circle, which may
appear so beneficial at first, may of course become as vicious
as the other, unless great care is taken to arrest its course
before it has gone so far as to inflict severe injury on trade
in general. That we have a steady hand on the brake in
the shape of the Federal Reserve Board in the United States
and our own chartered banks we may be thankful for. If
an acute financial crisis were due for this period it is alto-
gether probable that it would have developed in November,
and it looks as if we were now, if not altogether through the
woods, at- least nearly through, and that the danger of a dis-
astrous panic is practically over.
"We may attempt to sum up our conclusions. First,
the danger of a really serious break in the markets is now
passed. Second, although panic conditions have been averted,
the recessions in prices will certainly continue, at least until
the spring. Third, although it is hard to speak with any
certainty, we may reasonably expect a steadying of prices
perhaps next May or June, unless, of course, some unfore-
seen disaster overtakes us, and we must always remember
that a whole lot of most surprising things may take place
in the world during the next six months, especially in that
place of surprises, Wall Street."
PUBLICATIONS RECEIVED
Canadian Almanac for 1921. — Copp, Clark Co., Toronto.
$3.50. The new edition of this useful publication is up to
the usual standard. Among its most useful features are the
lists of banks in Canada, post-oflices and railroad stations,
government departments and officials, courts of law and
judicial officers, newspapers and magazines, lawyers and
chartered accountants. Information is also given about the
income tax, the customs tariff and excise duties.
The Slave in Canada.— By Hon. W. R. Riddell, Justice
of the Supreme Court of Ontario. The Association for the
Study of Negro Life and History, Washington, D.C. This
120-page book, with index, is an expansion of a paper, "The
Slave in Upper Canada," read before the Royal Society of
Canada in May, 1919, and subsequently published in the
Journal of Negro History for October, 1919. The author
quotes extensively from original documents and deals with
his subject in a thorough and interesting way.
Canadian Modern Accounting. — Part I., by A. F. Sprott,
and Part II., by Frank G. Short, C.A. Commerical Text
Book Company, Toronto. Part I., 220 pages, with index.
Part II. will be ready shortly. $2 per volume.
This text book, which is for students of accounting,
instead of commencing with an explanation of ledger accounts,
starts in with invoicing and other operations, the object of
which is apparent to the beginner, and then works up to
posting and the preparation of financial statements. In othei
words, it follows, as far as possible, the actual practice in
office routine. Part I. deals with single ownership and part-
nerships, while Part II. follows on with limited companies.
The work is well illustrated by forms and documents.
Report on Swiss Commerce and Industry in 1919. — The
report on Swiss commerce and industiy, which is published
every year by the directors of the "Swiss Association of Com-
merce and Industry," has just appeared for the year 1919.
The systematic arrangement of the contents of this volume
of 500 pages makes it a handy book of reference. The detailed
reports on the various forms of economic activity in Switzer-
land, together with the full statistics given, provide a rich
field of information for all those interested in the commercial
and industrial situation of the country in 1919. The foreign
student especially will be able to perceive how closely
Switzerland is bound up with the world-wide economic con-
ditions, and to what an extent certain international economic
factors, which predominated during the first year after the
war, have afl'ected Swiss commerce and industry. The report
can be obtained at the price of 9 fr., postage extra, from
the secretariat of the "Union Suisse du Commerce et de
ITndustrie," Zurich, Switzerland.
Beaton's Annual. — The seventeenth edition of Heaton's
Annual, issued by Heaton's Agency, Toronto, maintains the
standard of former editions. As an ofiice handbook for com-
mercial and financial firms, it needs no introduction, and no
public or private library in Canada is complete without it.
In addition to Dominion and provincial directories, bank-
ing and insurance directories, postal, cable, financial and
commerical information, which we would expect to find in
such a book, the Annual is known as the standard authority
on the Canadian Customs Tariff and Regulations. There is
a very complete summary of the Income Tax and Sales Tax,
and it has two features that are quite unique: a complete
encyclopedia of the natural resources of each province, in-
cluding agriculture, fisheries, forest products, fur trade,
minerals, water-powers, etc., all revised to date, and the
official Boards of Trade Register, which gives up-to-date
descriptions of to\yns in each province, including railways,
banks, schools, hotels in order of merit, industries, assess-
ment, population and local opportunities, with clear maps of
each province. Smaller places are covered in a Shippers'
Guide, giving banks, railways and population.
THE MONETARY TIMES
23
aiiiiiiiiiiiiHiiMiiiiiiiiiiiiiiiiiiiiiiiiiiliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin^
FORTY-NINTH FINANCIAL REPORT OF THE
CONFEDERATION LIFE
ASSOCIATION
FOR THE YEAR ENDING DECEMBER 31st, 1920
Submitted at the Annual Meeting, Held at the Head Office, Toronto, January 2Sth, 1921
CASH STATEMENT
Net invested assets, Dec. 31st, 1919 ....
RECEIPTS
Premiums —
First ye&r $1,190,322.27
Renewal 3,725,241.76
Single 238,681.57
.\nnuit.v 112,710.68
Supplementary contracts . . . 3,210.00
Oeposits by policyholders . 6,446.08
$5,282,612.36
Less re-assurances 183,898.61
Interest $1,233,695.97
Rents, net 105,459.72
Profit on sale of securities
$23,466,455.54
5,098,713.75
1,339,155.69
50,439.37
$29,954,764.35
DISBURSEMENTS |
To Policyholders and Beneficiaries: 1
Death claims $1,030,049.68 m
Endowments 467,225.38 g
Annuities 113,353.65 g
Matured investment policies 248,855.00 m
Surrendered policies 237,810.80 g
Supplementary contracts . . 7,747.25 a
Profits 324,477.28 |
Premium reductions 31,559.27 a
Payments made on policy- m
' holders' deposits . . . 778.81 1
$ 2,461,857.12 1
Expenses, salaries, rents, commissions to J
agents, doctors, solicitors, etc 1,564,415.80 g
Government ta.xes and license fees 78,130.70 g
Dividend to stockholders 20,000.00 m
Net invested a.ssets, Dec. 31st, 1920 25,830,360.73 |
$29,954,764.35 ■
BALANCE SHEET
ASSETS
First mortgages on real estate $ 5,412,081.46
Bonds and debentures 13,200,019.29
Stocks 1,184,321.60
Real estate, including Company's build-
ings at Toronto and Winnipeg 2,225,048.13
Loans on Company's policies 3,316,448.61
Sundry items 6,778.95
Cash in banks and at head office 512,789.40
Less cun-ent accounts
$25,857,487.44
27,126.71
Net invested assets as per cash statement
Interest and rents due and accrued
Net outstanding and deferred premiums,
reseTue thereo-ti included in the liabili-
ties
25.830,360.73
595,774.65
787,111..36
$27,213,246.74
LIABILITIES
Re-assurance liability on all outstanding
insurances- — including premium reduc-
tions and annuities
Death claims advised but not yet paid,
iyicluding all claims reported to date,
and rcseri-e held for unreported claims
Endowment claims
Amounts left with the Association on de-
posit by policyholders
Reserve for taxes payable in 1921
Profits to policyholders due and unpaid
Profits allotted to deferred dividend poli-
cies issued since 1911
Capital stock paid up
Premiums and interest paid in advance
General expenses
Cash surplus above all liabilities, including
investment resovvo fiin<l of $389,501.95
$24,645,296.00 1
238,343.95 |
21,740.00 i
7,317.16 I
60,000.00 i
46,204.18 1
303,154.84 I
100,000.00 i
9,216.96 S
6,181.64 1
1,775,792.01 I
$27,213,246.74 1
. ..^ , , , , , I R. F. SPENCE, F.C.A. (Can.),) , ...
Audited and found correct: . ,, Mppp FT A ' [.Auditors.
C. S. MACDONALD
General Manager.
m Insurance written and revived
INSURANCE ACCOUNT
$35,144,811 Insurance at Risk $1.35,624,925
Vice-President,
.JOSEPH HENDERSON, Esq.
OFFICERS AND' DIRECTORS
President,
J. K. MACDONALD, Esq.
Vice-President,
COL. ALBERT E. GOODERHAM.
John Macdonald, Esq.
Thos. J. Clark, Esq.
Lt.-Col. J. F. Michie.
Lt.-Col. The Hon. Frederic Nicholls.
James E. Ganong, Esq.
Wilmot L. Matthews, Esq.
B. B. Cronyn, Esq.
Peleg Howland, Esq.
John Firstbrook, Esq.
■ General Manager: CHARLES S. MACDONALD.
M 'iincral Manager of Age^icies, Medical Director,
I J. TOWER BOYD. A. JUKES JOHNSON, M.D., M.R.C.S. (Eng.)
■ Actuary. V. R. SMITH, A.A.S., A.I.A. |
MiiiiiiiiiniiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
Secretary,
J. A. MACDONALD.
24
THE MONETARY TIMES
Volume 66
MONTREAL TRUST COMPANY REPORT
POST-OFFICE SAVINGS BANKS
The report of the Montreal Trust Co. for the year ended
December 31, 1920, was presented to the shareholders at the
annual meeting, held on January 18. The financial statement
covering operations for the twelve months was satisfactory,
showing that the company has enjoyed another record year.
Net profits amounted to $201,298, against $175,722 for the
previous year. This amount, added to $59,935, the balance
in profit and loss account carried over from 1919, made a
total of $261,233, out of which the following appropriations
were made: Dividend at the rate of 10 per cent, per annum
paid to shareholders, $100,000; war taxes reserved, $10,521;
balance carried forward, $150,712.
The statement shows that estates and trusts under ad-
ministration and trusteeships for bond issues as at De-
cember 31, 1920, aggregated $375,260,466, an increase of
$34,525,561 over the figures shown at the close of 1919.
The election of directors for the ensuing year resulted
in the old board being retm-ned to office, and at the meeting
of its members, held immediately after the shareholders'
meeting, the following officers were elected: President, Sir
Herbert S. Holt; vice-president, A. J. Brown, K.C. Executive
committee— Sir Herbert S. Holt, A. J. Brown, K.C, E. L.
Pease, C. E. Neill and George Caverhill.
PAYROLLS SHOW CONTINUED CONTRACTION
Dominion headquarters of the Employment Service of
Canada, Department of Labor, reports that there was an-
other substantial decrease in employment during the week
ending December 31, 1920, when it was reported by 4,727
firms that they had released 45,214 persons, a contraction
in payroll of over 7 per cent. Fii-ms in four industrial
groups recorded additions to their payrolls aggregating 347
employees, while in 29 groups there were decreases totalling
45,561 workers. A large part of these declines were of a
temporary nature, indicating shutdowns for holidays and in-
ventories. The figures used in this report do not include loss
of time due to industrial disputes. Employers in every sec-
tion of the country registered shrinkages in payrolls, that
of 21,401 persons in Ontario being the largest. For the fol-
lowing week considerable recovery was expected in all pro-
vinces except Quebec and Saskatchewan. In Nova Scotia,
Prince Edward Island and Alberta employment at the end
of December was still at a higher level than during the week
of January 17, 1920 (the base week), but pronounced de-
creases were recorded elsewhere.
Large increases iii the number of persons on their staffs
were reported by employers in logging and gold and silver
mines. In the former the additions indicated the return of
men to logging camps following the Christmas holidays,
while in the latter they were of a temporary nature. The
most substantial contractions in payroll occurred in the rail-
way shop, crude, rolled and forged, shipbuilding and other
vehicle, tool, stove, hardware and pipe divisions of the iron
and steel industry, the net decrease in this group being
14,334 persons. Of these, over 7,000 men were laid off in the
shops of one railroad for a period of a week or ten days. In
the thread, yarn and cloth, garments and hosiery and knit
goods branches of textiles; in sawmills, furniture, glass,
brick, cement, chocolate, confectionery, tanning, boots, shoes,
baking powder, clock, pulp, paper, printing, publishing, rub-
ber tire and footwear, tobacco, electrical apparatus and
musical instrument factories, abattoirs, nickel refineries, coal
mines, local, railway and water transportation, retail and
wholesale trade, building and railway construction there were
also substantial decreases in employment. These contrac-
tions were in some groups attributable in part to shutdowns
for holiday and inventory purposes, and in others they were
due to seasonal causes. While all provinces participated in
the losses, those which were recorded in Ontario and Quebec
were in many cases largest. For the following week con-
siderable recovery from these declines was anticipated,
though plants in many groups expected to remain closed for
a longer period.
October, 1920, deposits in the post-office savings banks
show an increase over the previous month of about $11,500.
This, however, was offset by an increase in withdrawals of
more than $14,000, so that the balance at the credit of de-
positors was still further reduced. The following are the
details: —
... from Dominion Gov-
it Savings Bank during
Tran
ern
month ;
Principai
Interest
from 1st April to
date of transfer. . .
Deposits transferred from the
Post Office Savings Bank of the
United Kingdom to the Post
Office Savings Bank of Canada
NTEREST accrued on depositors'
accounts and made principal
3Ist March 1920, Estimate .
Balan'CE at the credit
of Depositors' ac-
counts on 31st
GOVERNMENT CURRENCY
The usual seasonal falling off in Dominion note circula-
tion, as a result of the reaction from the crop movement, is
seen in the December statement of government currency.
Dominion notes and specie outstanding at the end of De-
cember totalled $311,714,486, as compared with $326,839,592
at the end of November. At the same time there was an
increase in the amount of gold held by the Minister of
Finance of about $1,100,000. A reduction in depositors' bal-
ances in the post-office savings banks also made possible a
slight reduction in reserves for that purpose, so that the total
amount of gold held against outstanding notes, etc., was
increased by $1,124,773. Accordingly, the amount of Do-
minion notes outstanding against deposits of approved securi-
ties was reduced from $173,689,025 to $158,707,960. The
December details are as follows: —
27.743 25
1. 305.83 1 67
?.<K)1,809 00
1,202,263 50
37,759 00
i.23C.,280 00
3.800 00
$500 ..
SI.OOO
S500 Legal Tende
SI, 000
JS.OOO
$50,000
Notes for Banks.
9311,714,486 42
8101.101,970 11
3.956,195 47
nption of Dominion Notes S 97,145,774 64
utstanding against deposits of approved secur-
nance Act, 1914 J158,707.960 75
Gold held Dec, 3Ist, 1920. by the Minister of Finance
Gold reserve to be held on Savings Banks Deposits —
10 p.c. on $39,561,954,70 under The Savings Banks Act.
At the annual meeting of the Hamilton, Ont., LifeUnder-
wirters Association on January 19 the following officers were
elected: George Nickson, president; W. B. Fairley, vice-
president; George Allan, secretary; Ralph Ripley, treasurer;
William Hunter, G. H. Dawson and E. R. Norton, executives:
H. W. Leslie and J. W. Stuart, auditors.
Januurv i^s. \'r2]_ T H E M 0 N E T A R Y T I M E S 25
North
American LifE
SQlid
_ as the ■
CnntinEnt
"SOLID AS THE CONTINENT"
The success that attended the operations of the North
American Life during 1920 established beyond question the
strength and security of the Company. Its financial position
is unexcelled.
Outstanding Records for 1920: —
Policies Issued and Revived $24,363,971.00
Amount of Insurance in Force .... 99,600,473.00
Assets 20,041,882.64
Payments to Policyholders 2,163,997.65
Net Surplus 2,609,827.21
Such records are the outward evidence of the unexcelled financial position
attained by the Company, and of the sure foundation upon which it has
been built. With this Company, policyholders" interests are paramount, over
99r^i^ of the profits earned being allotted to them. If you are contemplating
new insurance, see one of our representatives. A copy of the 1920 report
will be sent on application.
NORTH AMERICAN LIFE
ASSURANCE COMPANY
-SOLID AS THE CONTINENT"
Home Office - Toronto, Canada
L. GOLDMAN. President and Managing Director W. K. GEORGE, First Vice-President
Col. D. McCRAE, Second Vice-President
Directors :
HAMILTON CASSELS. K.C. J. A. PATERSON. K.C. C. W. 1. WOODLAND
JOHN N. LAKE M. J. HANEY E. HOLT GURNEY
W. B. TAYLOR, B.A., L.L.B., Secretary D. E. KILGOUR, M.A., A.l.A.. F.A.S., Actuary
C. W. STRATHY, Treasurer T. D. ARCHIBALD, M.D.. Medical Director
E. J. HARVEY, Supervisor of Agencies
26
THE MONETARY TIMES
Volume 66.
The Standard Trusts Company
The Eighteenth Annual General Meeting of the Shareholders of the Standard Trusts Company was held at the Head
Offices of the Company in Winnipeg on Thursday, the 27th day of January, 1921. There was a good attend-
ance of Shareholders, and the following report and financial statement were submitted and adopted: —
REPORT BY THE DIRECTORS
TO THE SHAREHOLDERS OF
THE STANDARD TRUSTS COMPANY
For the Yeer ivhich ended 31st December, 1920
To the Shareholders: —
Your Directors have pleasure in submitting herewith the Company's Financial Statement showing its
operations during the past year.
Balance at credit of Profit and Loss Account brought forward from last year $ 26,645.34
Net profits for the year, after providing for all costs of management and investment, in-
come, and other taxes, interest on Guaranteed Investment Certificates, etc 101,822.84
$128,468.18
Appropriated as follows: —
Dividends Numbers 32 and 33 at the rate of 9% per annum 90,000.00
Leaving to be carried forward $ 38,468.18
Your Directors have to record, most regretfully, the passing of one of their colleagues in the person of
Mr. P. C. Mclntyre, a most respected citizen, and a very valuable member of the Investment Committee. It
is not in contemplation that the vacancy on the Board be filled meantime.
All your Directors, in accordance with the Company's By-laws, retire, but are eligible for re-election.
Your Auditors, John Scott & Company, also retire and offer themselves for re-appointment.
Respectfully submitted,
M. BULL,
Winnipeg, January" 20th, 1921. Pesident.
Financial Statement for the Year] ended 31st December, 1920
COMPANY ASSETS.
Cash in Bank and on Hand
Loans on First and Equitable Mortgages.
$ 76,145.16
1,319,088.67
? 1,395,233.83
775,166.85
246,565.78
394,725.94
217,289.27
4,720.34
$ 3,033,702.01
TRUSTS' ASSETS.
Mortgages and Agreements of Sale in Process
of Collection $ 3,314,564.62
Estate Assets— Real 5,288,987.51
Estate Assets — Personal 3,641,063.26
Advances to Estates under Administration.
Office Premises — Winnipeg and Saskatoon. .
Balance of Mortgages
Foreclosed Properties
Miscellaneous
$12,244,615.39
AGENCY ASSETS.
Clients' Allocated Securities $ 1,159,964.83
Grand Total $16,438,282.23
N.B. — The Company is also Trustee for Bond Issues
amounting to $10,000,000.00.
COMPANY LIABILITIES.
Balances due to Estates under Administration,
invested and held for distribution
Clients' Invested Funds — Guaranteed
Reserve for Government Taxes
Sundry Outstandings
Dividend No. 33, payable 3rd Jan., 1921
Capital Stock Subscribed
Reserve
Profit and Loss Account
$ 754,073.85
577,259.73
10,000.00
8,900.25
45,000.0a
$,1,395,233.83
1,000,000.00
600,000.00'
38,468.18
$ 3,033,702.01
TRUSTS' LIABILITIES.
Clients' Estates under Administration $12,244,615.39
$12,244,615.39
AGENCY LIABILITY.
Clients' Funds $ 1,159,964.83
Invested in allocated Securities as per contra.
Grand Total $16,438,282.23
MANLIUS BULL,
President.
WM. HARVEY,
Managing Director
January 28, 1921
THE MONETARY TIMES
27
PROFIT AND LOSS ACCOUNT.
Balance, 31st December, 1919 $ 26,645.34
Net Profits for the year, after de-
ducting Expenses of Manage-
ment, Directors' and Auditors'
Fees, Commissions, etc 101,822.84
1128,468.18
Appropriated as follows: —
Dividends Nos. 32 and 33 at the
rate of 9 per cent, per an-
num $ 90,000.00
Balance carried forward 38,468.18
$128,468.18
AUDITORS' CERTIFICATE.
We beg to report to the . shareholders that we have
audited the Books and Accounts of The Standard Trusts
Company at its Head Office and Branches for the year end-
ing 31st December, 1920, and hereby certify that the above
Balance Sheet is, in our opinion properly drawn up so as to
exhibit a true and correct view of the Company's affairs,
according to the best of our information and the explana-
tions given us, and as shown by the Books of the Company.
All loan balances have been checked with the Mortgage
Ledgers, and the Securities covering such loans have, as in
previous year, been duly inspected and the cash and bank
balances verified. All our requirements as Auditors have
been complied with.
JOHN SCOTT & CO.,
Chartered Accountants,
Scotland and Manitoba.
Winnipeg, 18th January, 1921.
Messrs. John Scott & Company were reappointed
-Auditors, and the following Directors were re-elected to
serve on the Board during 1921: —
Messrs. William Harvey, E. S. Popham, M.D., John A.
Girvin, Kenneth MacKenzie, John Persse, John Stovel,
Manlius Bull, W. A. iMatheson, W. R. Bawlf, Hon. W. B.
Willoughby, K.S., John McFarland and J. C. Gage.
At a subsequent meeting of the Directors, Mr. Manlius
Bull was re-elected President, Mr. William Harvey and Dr.
E. S. Popham, Vice-Presidents, while the working or
Executive Committee were elected as follows: — Messrs. M.
Bull, William Harvey, E. S. Popham, M.D., John A.. Girvin,
and W. A. Matheson, with Mr. Bull as Chairman. 380
NATIONAL TRUST BUSINESS INCREASED IN 1920
The financial statement of the National Trust Co., Ltd.,
Toronto, for the year ended December 31, 1920, shows an
increase in the volume of business transacted by the com-
pany of approximately $5,000,000. The estates, trusts and
agency account was $5,060,880 in excess of the 1919 figure,
which was $79,665,410. The guaranteed trust account was
somewhat lower at $5,387,200.
Notwithstanding the increased service to the public the
company reaped smaller returns, net profits amounting to
$252,825, as compared with $281,140 in 1919. The income
for the year was augmented by $375,000, being the premium
on a new stock issue of $500,000 made during the year. The
dividend rate was raised from 10 to 12 per cent., and the
reserve fund was advanced to $2,000,000 by an addition of
$400,000. The capital stock also stands at $2,000,000. Profit
and loss balance carried forward is $84,417, compared with
$.59,623 at the end of 1919.
W. A. Tolmie, C.A.. has retired from the firm of Alfred
Shaw, Tolmie and Co., Vancouver. B.C., and has opened offices
at 722 Standard Bank Building. Mr. Shaw, C.A., will con-
tinue business at Rooms 708-9-10 Credit Foncier Building,
Vancouver.
EIGHTY-NINE YEARS OF SUCCESSFUL BANKING
Eighty-nine years of successful banking in Canada,
ending with 1920, have brought the Bank of Nova Scotia's
assets up to $239,704,383. The reserve fund totals $18,-
000,000, or nearly double the capital stock of $9,700,000.
Deposits not bearing interest are shown at $39,264,930,
as compared with $53,745,723 at the end of 1919, but de-
posits bearing interest have increased from $126,546,884
to $145,480,914, bringing total deposits more than $4,000,000
in excess of 1919. All the loans accounts show increases,
with the exception of call in Canada. Demand loans secured
by grain and other staple commodities are $15,183,998, or
about $1,000,000 in excess of the 1919 figure. Other com-
mercial loans are shown at $73,103,489, as against $66,171,-
447 previously, while current loans abroad have increased
by somewhat over $2,000,000.
The growth of the institution is illustrated by the fol-
lowing figures. In the 1919 annual statement the general
manager, H. A. Richardson, showed the result of amalgama-
tions, and their value to the bank. There were no absorptions
in 1920, so that the natural growth of the institution since
1909 can be readily deduced: —
Dec. 31, Dec. 31, Dec. 31,
1909. 1919. 1920.
Capital $ 3,000,000 $ 9,700,000 $ 9,700,000
Reserve fund and profit 5,544,865 18,704,172 18,982,595
Loans 30,776,870 117,473,263 127,215,916
Deposits 35,008,332 180,292,608 184,745,845
Circulation 2,842,476 23,266,963 21,004,637
Total assets 48,359,366 238,278,722 239,704,383
Percentage of cash to
public liabilities .. 12.6''r 1.5.49% 16.20%
Percentage of cash and
bank balances to
public liabilities . . 24,6% 25.92% 26.20%
Dividend paid 12. ':r 16. % 16. %
Net profits of the bank last year increased from $1,-
925,478 to $2,327,422. The usual dividends were paid, and
$300,000 written off bank premises account, an increase of
$100,000 over the previous year. Nothing was added to
reserve, and a balance of $982,595 was carried forward, as
compared with $704,172.
CONFEDERATION LIFE ENJOYED C 'OD YEAR
Notwithstanding the uncertainity of con J. ■ du'-.n,.;
the latter part of the year, which affected life ;!isurance
companies in general with other business, the Conteaeration
Life Association is able to report a satisfactory volume of
insurance for 1920. Applications were received for new in-
surances amounting to $35,904,642, and of this amount the
sum of $34,203,226 was approved and policies issued there-
for. The balance, amounting to $1,701,416 was declined or
deferred for further consideration. The total new issues dur-
ing the year, inclusive of bonus additions and revivals
amounted to $35,144,811, being an increase over the year
1919 of $3,876,284.
The net revenue from premiums and annuities was
$5,272,550, being $915,480 more than for the previous year.
The net revenue from interest and rents amounted to $1,391,-
485, which was $107,517 in excess of that for 1919.
Payments on the whole were lower than in 1919. Claims
by death "which arose during the year, after deducting re-
insurances, amounted to $974,356, an increase of $103,430
over the previous year. Matured endowments, however,
showed a decrease of $197,196 compared with the previous
at $471,831, while total payments to policyholders amounted
to $2,384,398, which is $433,842 less than in 1919.
The balance sheet shows net invested assets of $25,-
830,361, of which amount bonds and debentures are 51.10
per cent., first mortgages, 20.95 per cent, a/id loans on
company's policies, 12.84 per cent. The resei-ve liability on
all outstanding insurances is now $24,645,296.
28
THE MONETARY TIMES
Volume Sf-
THE DOMINION BANK
The Fiftieth Annual General Meeting of the Dominion
Bank was held at the Banking House of the Institution,
Toronto, on Wednesday, the 2tith January, 1921.
AmoiiR- those present were noticed: Sir Augustus M.
Nanton (Winnipeg), Sir Edmund B. Osier, Leighton Mc-
Carthy, K.C., H. W. Hutchinson (Winnipeg), P. Leadley, T.
P. Phelan, E. G. Gooderham, W. T. Kernahan, W. L. Mat-
thevv.-i, Sigmund Samuel, S. C. Halligan, J. 0. Gadsby, R. S.
McLaughlin (Oshawa), H. H. Williams, R. J. Christie, Sir
William Mulock, John J. Cook, A. W. Austin, Chas. P. Stuart,
N. M. Paterson (Fort William), W. H. Knowlton, Allan Mc-
Pherson (Longford Mills), W. C. Crowther, Rev. J. dePencier
Wright (Kingston), W. Gibson Cassels, S. Jeffrey (Port
Perry), A. Monro Grier, K.C., Jas. Ince, H. B. Phillips, J. H.
Paterson, Wm. Logan, J. J. Cawthra, W. M. Stewart, Hon.
Thos. Crawford, Jesse Ashbridge, H. W. Fleury (Aurora),
W. J. Fleury, R. Mills (Hamilton), Rev. T. W. Paterson,
Henry Brockj A. Nordheimer, W. H. Edwards, H. R. Playtner
(Preston), A. T. Reid, W. W. Near, Wm. Checker, V. H.
Cawthra, Dr. F. LeM. Grasett, J. P. Bell (Hamilton), D'Arcy
Martin, K.C., E. W. Hamber (Vancouver).
It was moved by Mr. R. J. Christie, seconded by Mr. H.
W. Hutchinson, that Sir Edmund B. Osier do take the chair
and that Mr. W. K. Pearce do act as Secretary.
Messrs. Graham Campbell pnd W. Gibson Cassels were
appointed Scrutineers.
The Secretary read the Report of the Directors to the
Shareholders, and submitted the Annual Statement of the
affairs of the Bank.
To the Shareholders: —
The Directors beg to present the following Statement of
the result of the business of the Bank for the year ended
.31st December, 1920: —
Balance of Profit and Loss Account, :31st Decem-
ber, 1919 $ 495.707.05
Profits for the year, after deducting-
charges of management and
making full provision for bad
and doubtful debts $1,347,011.11
Less: —
Dominion Government
Taxation $120,000.00
Provincial Governments
Taxation 38,500.00
158,500.00
Making net profits of 1,188,511.11
$1,684,218.16
Which amount has been disposed of as follows:—
Dividends (quarterly) at twelve per
cent, per annum $ 720,000.00
Bonus, one per cent 60,000.00
Total distribution to Shareholders of
thirteen per cent, for the year$ 780,000.00
Contribution to Officers' Pension Fund 35;000.00
Written off Bank Piemises
$ 815,000.00
. 200,000.00
Balance of Profit and Loss Account
carried forward
$1,015,000.00
669,218.16
-$1,684,218.16
E. B. OSLER,
President.
C A. BOGERT,
General Manager.
The financial year which closed 31st December, 1920, was
marked by a steady demand for credit, and our funds were
in consequence continuously employed. We feel that the re-
sults, as reflected in the Annual Balance Sheet and Profit and
Loss Statement, will be received by the Shareholders with
satisfaction.
The Head Office and Branches have been regularly in-
spected by our inspection staff during the past twelve months.
The Bank's Auditors, Messrs. G. T. Clarkson and R. J. Dil-
worth, have made the usual examination of the B&nk's af-
fairs, and their certificate is appended to the Statement sub-
mitted herewith.
During 1920 seventeen Branches and three Sub-branches
were opened at points whicli promised, after careful investiga-
tion, that we were warranted in entering the territory. In
ONTARIO— Ameliasburg (Sub to Belleville); Hamilton,
Gage Avenue Branch, Homeside Branch; Kenilworth (Sub to
Mount Forest) ; New Toronto; Roblin (Sub to Napanee) ; St.
Thomas, East End Branch; Sarnia, Sprucedale, Timmins,
Trenton. In MANITOBA— Dauphin, The Pas; Winnipeg,
Portage Avenue and Kennedy Street Branch. In ALBERTA
— Calgary, Alberta Stock Yards Branch; Edmonton, Edmon-
ton Stock Yards Branch; Tofield. In SASKATCHEWAN—
Canora, Yorkton. In BRITISH COLUMBIA— West Summer-
land. Two branches were closed — Craven, Sub to Regina, and
Petersfield, Sub to Selkirk, Man.
In order to provide for the increased business of some
of our long-established Branches, several new buildings were
completed and occupied during the past twelve months. New-
quarters have been provided for our Branches at the coi'ner
of Queen and Bay streets, the corner of Dupont and Christie
streets, and the corner of Yonge and Hayden streets, Tor-
onto, and at Orillia, Ont. In addition, suitable offices have
been erected for Fairbank, New Toronto and Cherry and
Commissioner streets (Toronto) Branches. Your Directors,
as is customary, have made a substantial appropriation for
reduction in Bank Premises Account.
Owing to the continued expansion in the Bank's busi-
ness, your Directors consider it expedient to request your
authorization of an increase in the number of members on
the Board from thirteen to sixteen members; the relative
Bv-laws will be submitted for your approval.
E. B. OSLER,
Toronto, 26th January, 1921. President.
The Report was adopted.
Messrs. Geoffrey T. Clarkson and Robert J. Dilworth, the
retiring Auditors, were reappointed for the current year.
The thanks of the Shareholders were tendered to the
President, Vice-Presidents and Directors for their services
during the year, and to the General Manager and the other
Officers of the Bank for the efficient performance of their
respective duties.
The following gentlemen were duly elected Directors for
the ensuing year: Messrs. A. W. Austin, James Carruthers,
R. J. Christie, Sir John C. Eaton, E. W. Hamber, H. W'. Hut-
chinson, W. L. Matthews, R. S. McLaughlin, Sir Augustus
M. Nanton, W. W. Near, A. T. Reid, Sir Edmund B. Osier
and H. H. Williams.
At a subsequent meeting of the Directors, Sir Edmund B.
Osier was elected President and Mr. A. W. Austin and Sir
Augustus M. Nanton Vice-Presidents for the ensuing term.
GENERAL STATEMENT
LIABILITIES.
Capital Stock paid in * 6,000,000.00
Reserve Fund $ 7,000,000.00
Bal&nce of Profit and Loss
Account carried forward 669,218.16
Dividend No. 153, payable
3rd January, 1921 180,000.00
Bonus, one per cent., payable
3rd January, 1921 '. 60,000.00
Former Dividends unclaimed 921.00
7,910.139.1i;
Total Liabilities to the Shareholders ... $ 13,910,139.16
Notes in Circulation $ 9,159,886.00
Due to Dominion Government 7,000,000.00
Deposits not
bearing in-
terest ' ... $20,051,816.72
Deposits bear-
ing inter-
est, includ-
ing inter-
est R'Ccrued
to date . . . 84,889,439.45
104,941,25(5.17
Balances due to other Banks
in Canada 806,717.59
Balances due to Banks and
Banking Correspondents
elsewhere than in Canada 014,116.78
Bills Payable 67,104.20
January 28, 1921
THE MONETARY TIMES
29
Acceptances under Letters of
Credit 1,823,472.17
Liabilities not included in the
foregoing 640,401.08
Total Public Liabilities . .
ASSETS.
Gold and Silver Coin $ 2,092,477.15
Dominion Government Notes 18,052,783.25
Deposit with Central Gold Re-
serves 4,000,000.00
Notes of other Banks 1,104,.306.27
Cheques on other Banks 7,530,033.85
Balances due by other Banks
in Canada 1,005.25
Balances due by Banks and
Banking Correspondents
elsewhere than in Canada. 1,881,011.95
$ 34,661,617.72
Dominion and Provincial Gov-
ernment Securities, not
exceeding market value 5,106,158.31
Canadian Municipal Securi-
ties, and British, Foreign
and Colonial Public Se-
curities other than Cana-
dian, not exceeding mF..r-
ket value 9,956,980.78
Railway and other Bonds, De-
bentures and Stocks, not
exceeding market value . . 1,810,680.54
Call and Short (not exceeding
thirty days) Loans in
Canada on Bonds, Deben-
tures and Stocks 7,646,420.30
Call and Short (not exceding
thirty days) Loans else-
where than in Canada . . 5,139,899.60
Other Current Loans and Dis-
counts in Canada (less
rebate of interest) S 66,216,946.21
Other Current Loans and Dis-
counts elsewhere than in
Canada (less rebate of
interest) . 523,395.60
Liabilities of Customers under
Letters of Credit, as per
contra 1,823,472.17
Real Estate other than Bank
Premises 5,408.76
Overdue Debts (estima<ted loss
provided for) 80,913.40
Bank Premises, at not more
than cost,, less amounts
written off 5,631,453.83
Deposit with the Minister of
Finance for the purposes
of the Circulation Fund . 309,575.00
Mortgages on Real Estate sold 19,326.41
Other Assets not included in
the foregoing 330,844.52
FLUCTUATION
R THE YEARS 191
125,352,953.99
$139,263,093.15
$ 64,321,757.25
E. B. OSLER,
President.
74,941,335.90
$139,263,093.15
A. BOGERT,
General Manager.
ALOITORS' REPORT TO SHAREHOLDERS.
We h;i\ i coniDjred the .ihove BaLince Sheet with the books and accounts
the Chief Ottice of The Dominion Bank, and the certified returns received
am its Branches, and after checking the cash and verifying the securities at
e Chief Oftice and certain of the principal Branches on December 31st. 1920.
; certify that, in our opinion, such Balance Sheet exhibits a true and correct
exv of the stale of the Bank's alTairs. accordinR to the best of our information,
e explanations given to us and as shown by the books of the Bank.
In addition to the examinations mentioned, the cash and securities at the
lief Office and certain of the princioal Branches were checked and verified by
i at another time during the year and found to be in accord with the books of
le Bank.
All information and explanations retiuired have been given to us and all
ansactinns of the Bank which have come under our notice have, in out-
linion been within the powers of the Bank.
G. T. CLARKSON
R. J. DILWORTH
fOf Clarkson. Cordon & Dilwortii c -X
oronto. Janunry 20lh. 1921.
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- RenU in WlnniMg (or tb« jcaii 1914 to I
Food«lQfla In •iity eiUn In C«bk4* for tl
BaildiBf mnUrtaU to aiity citir* in C»na<
Insurance Company, Limited
Subscribed Capital i;500,000
Paid-up - - ;f250,000
Bankers:
LLOYD'S BANK, LIMITED
THK LONDON JOINT CITY & MIDLAND BANK, LIMITED
FOR REINSURANCES
Manager: Harry L. Smathcrs Secretary: F. Ckcil Barley
Head Office
LOMBARD HOUSE, GEORGE YARD
LOMBARD STREET, LONDON, E.G. 3
Telegrams "emocrevo, leh. i.onijon."
30
THE MONETARY TIMES
Volume
HEALTH AND ACCIDENT FEATURES IN LIFE
POLICIES
(Continued from page 6.)
It may be mentioned here, as supplementary to the pro-
visions stated in the amendment, that transfers of funds
from the shareholders' sui-plus may be made by the share-
holders at any time and to any amount, but the amount which
may at the commencement be transferred from the policy-
holders' surplus subject to the policyholder's consent and
within the maximum of $100,000 cannot be augmented by a
similar transfer at a later date until same has been formally
approved by the Treasury Board.
Fire Companies in Life Business
In addition to the new subsections of section 77 before
read, there are three more new subsections which make pro-
vision for a fire or casualty company entering upon the busi-
ness of life insurance; because the privilege of securing an
enlargement of license is to be opened to companies of every
variety on equal terms on the principle that "what is sauce
for the goose is ^auce for the gander." It is also made plain
that either one of the separate branches may be wound up, in
the same manner as a separate company, without in any
way involving- the other branch. These provisions are as
follows: —
"(5) If the said by-law in the case of a company other
than a life insurance company authorizes the transaction
of the business of life insurance, the treasury board shall
require as a condition of its section of the said by-law that
the company shall keep separate and distinct accounts and
shall create and maintain in respect of the business of life
insurance a separate and distinct fund to an amount of not
less than one hundred thousand dollars and such fund shall
be liable only for claims or losses arising from the said
business of life insurance, and the other funds shall not be
liable for the said claims or losses.
"(6) For the purpose of creating the separate arid dis-
tinct fund mentioned in subsection five hereof, the com-
pany may by by-law transfer as such fund the whole or any
portion of the surplus of the company which under the pro-
visions of this Act is available for the payment of dividends
to its shareholders.
"(7) Any separate and distinct fund authorized by this
section may in the case of any company be liquidated and
wound up under the provisions of this Act or of the Wind-
ing-up Act independently of the other business of the com-
pany and the provisions of this Act and the Winding-up Act
shall apply to such funds as fully as if the company trans-
acted only the class or classes of business in respect of which
such funds are maintained; provided, that in the winding-
up of the company or of any fund therefore, the capital
stock, if any, subscribed before the date of the separation
of funds herein authorized shall be liable, both as to the
amount paid and the amount unpaid thereon only for claims
or losses arising from the class or classes of business trans-
acted prior to the said date."
That is the last of the changes proposed by the amend-
ment which concern our subject.
Life and Casualty Combination
It will be interesting at this point to consider, in the
case of a life company which sets up a casualty branch, just
what is the legal recourse open to a policyholder of either
branch in making a claim on the company. The proposal
is that the company will issue its life policy quite as at
present, except that a clause will be inserted exempting the
casualty fund from liability for any claim arising out of the
life policy; and the casualty policy will be issued in the
name of the life company, with a clause inserted which will
in effect exempt the life fund and also the shareholders'
capital and surplus from liability for any claim arising out
of the casualty policy.
There is evident here another important variation from
the British Act. Under the British Act, the companies
capital stock stands as a common guarantee behind all the
branch funds. Under the law of New York State, and it
may be added under the law of Ontario, there is no statu-
tory provision for separation of the funds of the various
classes of business. The legal position of the various classes
has been summed up in an opinion by the general counsel
of a big American company as follows :—
"In the United States, and I assume that the same
practice would be followed in the courts of the Dominion,
the assets of the company, in the event of liquidation, v/ould
be so marshalled by the courts, that no part of the reserves
maintained for the life liabilities could be used to liquidate
the liabilities of the accident department, until all the life
liabilities had been fully discharged, and no part of the
reserves of the accident department could be used to liquidate
life liabilities until after all the accident liabilities had been
discharged."
This implies that not only the capital stock, but also
the company's general surplus, regardless of its origin, and
in case of insolvency the reserves of all the branches com-
bined would stand as a common guarantee behind all the
policies. This is about the same condition as will exist in the
casualty branch of a Canadian life company, among the
various classes of insurance transacted; always remembering
that the entire casualty branch will exist as a subsidiary of
the original life company.
American Companies' Difficulties
Under the Canadian amendment as it stands, requiring
separate capital, separate securities and separate funds, as
well as separate accounts, it is doubtful whether many of
the American companies will be able or willing to obtain
an enlargement of their licenses in Canada. Obviously, the
Canadian department has no power to enlarge the corporate
powers granted to an American company by its native juris-
diction. Another matter to be inquired into by Canadian
companies, which desire to operate in the United States, is
whether their application for license there would in any
way be prejudiced by the separation of the funds according
to this amendment.
The main question to consider is to what extent or how
soon are the Canadian companies likely to avail themselves
of the opportunities which the amendment presents to them
of entering upon new classes of insurance. I have discussed
this with a number of men connected with various companies.
Few of them are prepared to say just what new classes, if
any, their companies are likely to undertake. All the com-
panies have recently been expanding rapidly in their parti-
cular fields and find themselves unusually busy, without
launching out upon new ventures. It must be remembered
that the companies themselves have not framed the new
regulations, nor have they sought them, although in the
absence of compulsory features no serious objection has been
raised. Furthermore, new developments in the insurance
world have been coming so thick and fast latterly, that there
is not time to properly assimilate one before it is necessary
to come to a decision about the next.
Likelihood of Action
The concensus of opinion is that the life companies are
not likely to undertake, for the present at least, such classes
of business as fire or surety insurance for example, which
are not at all nearly related to life insurance. Neither does
it seem likely that the fire and casualty companies will
quickly enter upon the business of life insurance.
The one important development, which is likely to take
place without delay, is the undertaking by the life insur-
ance companies to a limited extent of health and accident
insurance. There has been a big movement along these lines
in the United States, and, broadly speaking, two distinct
methods of operation have been tried out.
January 28, 1921
THE MONETARY TIMES
BANK OF MONTREAL
Notice is hereby given that a Dividend of Three Per
Cent, upon the paid-up Capital Stock of this Institution has
been declared for the current quarter, payable on and after
Tuesday, the First Day of March next to Shareholders of
record of 31st January, 1921.
By Order of the Board.
FREDERICK WILLIAMS-TAYLOR,
General Manager.
Montreal, 21st January, 1921. 373
THE QUEEN CITY FIRE INSURANCE COMPANY
The Annual General Meeting of the Shareholders of this
Company will be held, pursuant to the Act of Incorporation,
on Monday, the 14th day of February, 1921, at 10 o'clock a.m.,
at the Company's office, 32 Church Street, Toronto, to receive
the report of the Directors for the past year, to elect Direc-
tors for the ensuing year, and for the transaction of such
other business as may be transacted at a General Meeting
of Shareholders.
Bv Order.
HUGH F. CRIGHTON,
Secretary.
Toronto, January 24th, 1921. 278
THE ROYAL BANK OF CANADA
DIVIDEND No. 134
Notice is hereby given that a Dividend of Three Per
Cent, (being at the rate of twelve per cent, per annum) upon
the paid-up capital stock of this bank has been declared for
the current quarter, and will be payable at the bank and its
branches on and after Tuesday, the first day of March next
to shareholders of record at the close of business on the 15th
day of February.
By Order of the Board.
C. F. NEILL, General Manager.
371
Montreal, Que., January 11, 1921.
THE CANADIAN BANK OF COMMERCE
DIVIDEND No. 136
Notice is hereby given that a dividend of Three per cent,
upon the capital stock of this Bank, being at the rate of
twelve per cent, per annum, has been declared for the quarter
ending 28th February next, and that the same will be pay-
able at the Bank and its Branches on and after Tuesday,
l?t March, 1921, to shareholders of record at the close of
business on the 13th day of Februarj', 1921.
By Order of the Board.
JOHN AIRD, General Manager.
Toronto, 21st January, 1921. 279
THE MERCHANTS BANK OF CANADA
QUARTERLY DIVIDEND
A Dividend of Three Per Cent, for the Current Quarter,
being at the rate of Twelve Per Cent, per annum, upon the
Paid Up Capital Stock of the Bank, was declared payable on
■1st February next to Shareholders of record on the evening
of 15th January, stock not fully paid up on 1st November to
participate from that date on the amounts then paid up and
on subsequent payments from the dates thereof.
By Order of the Board.
D. C. MACAROW,
General Manager.
Montreal, 28th December, 1920. 346
THE HAND IN HAND INSURANCE COMPANY
(Mutual and Stock)
The Annual General Meeting of the Members and Share-
holders of this Company will be held on Monday, the 14th
day of February, 1921, at 10.30 a.m., at the Company's offices,
No. 32 Church Street, Toronto, for the election of the Direc-
tors for the ensuing year and the transaction of other busi-
ness relating to the management of the Company.
By Order.
F. E. DINGLE,
Secretary.
Toronto, January 24th, 1921. 278
THE FIRE INSURANCE EXCHANGE CORPORATION
(Stock and Mutual)
The Annual General Meeting of the Members and Share-
holders of this Corporation will be held on Monday, the 14th
day of February, 1921, at 11.00 a.m., at the Company's offices.
No. 32 Church Street, Toronto. Ont., for the election of
Directors for the ensuing year, and the transaction of other
business relating to the management of the Corporation.
By Order.
ARTHUR DWYER,
Secretary.
Toronto, January 24th, 1921. 278
MILLERS AND MANUFACTURERS INSURANCE CO.
(Stock and Mutual)
The .\nnual General Meeting of the Members and Share-
holders of this Company will be held on Monday, the 14th
day of February, 1921, at 11.30 a.m., at the Company's offices.
No. 32 Church Street, Toronto, Ont., for the election of
Directors for the ensuing year, and the transaction of other
business relating to the management of the Company.
By Order.
C. H. C. FORTNER,
Secretary.
Toronto, January 24th, 1921. 278
COBALT ORE SHIPMENTS
The following are the shipments of ore, in pounds,
from Cobalt Station for the week ended January 21, 1921:—
Beaver Con. M., 60,000; La Rose, 87,990; Dominion
Red'n., 60,000; total, 207,990. The total since January 1st
is 496,301 pounds, or 248.1 tons.
THE JM O N E T A R Y TIMES
Volume 6C.
The first is the method employed by the Travelers' Life
of establishing a separate department to carry on each
separate class of insurance and to issue policies quite in-
dependently of eacli other. The other method is that re-
cently adopted by a great many of the American life com-
panies, .whereby an accident and health contract is issued
only in conjunction with a life policy.
Suggested Course
If I may be permitted to outline the course, which ap-
pears to me after such incomplete investigation as I have
made to be desirable for the Canadian life company to pur-
sue, I will make the following tentative suggestions: —
(1) Issue accident and health contracts only in con-
junction with life policies.
(2) Adopt a form of policy which will most strongly
recommend itself to the policyholder as a single indissolu-
ble contract of complete insurance of his person and which
will not suggest to his mind the discarding of the health
and accident feature, but rather will tend strongly to induce
him to continue the combined contract in force. This result
can be accomplished more readily if the companies are not
forced to issue separate contracts.
(3) Adopt the so-called "non-cancellable" form of health
and accident feature. This will, of course, require a higher
premium than a "cancellable" feature, but wall probably
prove more satisfactory to all parties in the end.
(4) Allow commission to agents on the combined con-
tract at the same rates as in the case of life policies issued
without the health and accident feature.
(Sf) Fix a ration between the size of the life policy and
the size of the health and accident feature issued with it.
this ratio not to be exceeded in any individual case.
(6) Fix a srrond ration between the total volume of
life policies issued in a year and the total volume of health
and accident features issued in conjunction with them.
(7) Commence with a scale of premiums for the health
and accidfnt feature, which the best experience available in-
dicates to be adequate.
(8) Make preparation so as to be in a position to
handle health and accident claims as they occur expeditiously
and with reasonable liberality.
(9) Instruct the agents so that they will take every
legitimate advanta'^e of their increased opportunities for
rendering service to the public.
Anticipated Results
Some of tlie results which the life company will antici-
pate from such a course may be stated as follows: —
(1) Owmg to their careful inspection of the health
and accident risks in the first instance and to the greater
persistence of the contracts which will follow from linking
them up with the life policies, they will gain the benefits of
selection and escape the injury of anti-selection exercised
by the policyholders; as a result they will almost certainly
experience a nioi-e favorable loss ratio than the casualty com-
panies at the present time; and they will he in a strong-
position to adopt non-cancellable contracts.
(2) Owing partly to the greater persistence of the
health and accident contracts when incorporated in the life
policies, and partly to the conditions under which the busi-
ness will he operated, the cost of acquisition and overhead
expenses should be lessened, at least in some degree, and
probably in a marked degree.
(3) The health and accident section of the business, if
efficiently administered along the lines sugtrested, will not
react adversely on the life section; neither should it impair
the efficiency of the agents as life insurance producers. On
the contrary, the company will probably gain much in
popularity and prestige.
I understand that one main reason which has led Mr.
Finlayson to advocate the handling of personal accident and
sickness insurance by companies which also handle life in-
surance, is his hope that by this means the cost to the policy-
holder can be lowei-ed. Whether that expectation will be
realized or not remains to be seen. I think, however, that
all present here are alive to the necessity of searching for
ways and means whereby the cost of every kind of insurance
dan be reduced.
As regards -the actual nature of the benefits which the
life companies will incorporate, it is difficult to speak at all
definitely at this stage. The tendency will undoubtedly be
toward more or less standard benefits and an avoidance of
frills of doubtful value. The double indemnity principle
will no doubt be included because of its universal popularity,
and in spite of tlie fact that it is open to objection on purely
logical grounds.
It need not be feared that the life companies will be wild
cats in the casualty field, their traditions are all against it,
and they are ballasted by the counsel of their actuaries and
medical directors — men who have long been trajned in the
scientific conduct of life insurance.
In conclusion, there is just one other matter to which
I will refer, namely, the suggestion of the executive com-
mittee of the Canadian Life Officers' Association. The
opinion is advanced by this committee that if a life company
issues its health and accident benefits only as a part of a
life policy, and fixes limiting ratios on the amount of such
business transacted in comparison with its life business, then
the Canadian Act might safely permit it to maintain all
its policies in a common fund, with common investments and
a common capital, keeping, however, separate accounts of
the life and casualty sections, as is now done in the case of
participating' and non-participating sections of its business.
Let us consider for a moment what the item of agent's
commission on the health and accident feature will amount
to when this feature is attached to a life policy, assuming
a policy duration averaging eight years and commission rates
the same as the life companies are now paying. The total
commissions paid on life policies averaging a duration of
eight years, and compi-ising all plans of insurance, would be
less than 120 per cent., that is, less than 15 per cent, per
year. That would seem fairly reasonable under present-day
conditions, with the other expenses in proportion. This plan
would not interfere with the other terms of the amendment,
but would be an alternative to them. Undoubtedly, it is a
plan which nearly all the life companies would choose in
preference to the other, especially at the commencement, and
in many cases permanently. It would give the life companies
as much scope in the health and accident field as they are
likely to make use of in any case, because few, if any, of the
life companies desire to enter upon a genei'al casualty busi-
ness. It would be a simple and convenient plan, which would
avoid all the objections which I have mentioned in reference
to the amendment in its present form, and it would satisfy
almost everybody. A Dominion incorporation would then
confer equal privileges with a provincial incorporation, which
is not the fact at present.
The only objection which might be urged would be that
excessive losses might be incui-red from the health and acci-
dent features which would affect the security of the life
policies, or the amount of dividends payable on them. The
more that objection is weighed, the more chimerical it ap-
pears. For the reasons already stated the experience of the
health and accident section, conducted by the method out-
lined, will probably be very favorable. This same objection
of "too risky" is always the stock argument of the reac-
tionaries. For example, the gravest misgivings wei-e voiced
at first as regards incorporating total and permanent disa-
bility benefits in life policies, but now even the pessimists
have calmed their forebodings. American life companies have
for years been inserting health and accident guarantees in
their policies with excellent results, without forming sub-
sidiary companies. Surely the Canadian life companies can
be trusted to follow that precedent with safety.
Wm. R. Jex, Colin P. MacKintosh and David A. B.
Murray announce having formed a partnership as chartered
accountants, with off.ce at 307 Mclntyre Block, Winnipeg.
January 28, 1921
THE MONETARY TIMES
33
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1 CHARTERED ACCOUNTANTS |
niiiiiiiiiiiiiiiiiiiiiiiiiiiiiuii II iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiR
Baldwin, Dow & Bowman
CHARTERED ACCOUNTANTS
OFFICES AT
Edmonton - • Alberta
Toronto • Ont.
CHARLES D. CORBOULD
Ckartered Acconntairt and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
Cor
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
BraDcb at Nanaimo. B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON - ONTARIO
Established I
W. A. Henderson & Co.
Chartered Accountants
S08-509 Electric Railway Chambers
Winnipeg, Man.
•.hie
. C.A.
J.J. Co
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS,
24 King Street West - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO.
Cluirtereil Accountants. Auditors,
Trustees, Liauidators
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne, Mulholland, Howson & McPherson
3420
CHARTERED ACCOUNTANTS
SPECrALisrs ON Kactohv Costs and Production
Bank of TORONTO
Hamilton Bide. * ^-'IVV.'l^ 1 *-»
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED
Telepho
LUMSDEN BUILDING
ACCOUNTANTS
le Main 7014
TORONTO, CANADA
CLARKSON, GORDON & DILWORTH
Chartered Accountants, Trustees,
Receivers. Liquidators
Merchants Bank Bldg.. 15 Wellincton Street West ToronI
G. T. Clarks
Established 1864 o j nilwor
K. Williamson, C.A.. J. D Wallace. C A.
A J. Walker. C. A. H. A. Shiach C.A.
RUTHERFORD WILLIAMSON 4 CO.
• Chartered Accountants. Trustees and
LtQuidators
«6 Adelaiue Street Bast, TOKONTO
604 .McGiLL Building, MONTREAL
Cable Address-' WILLCO."
Represented at Halifax. St. John. Winnipeg.
Vancouver.
Norman B. McLe'od
Chartered Accountant
AUDITS INVESTIGATIONS
COST ACCOUNTING
803 Kent Bldg. - TORONTO
Phone MAIN 3914
HENRY BARBER & CO.
Eatabliiihed 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railway Building.
6 King Street West - TORONTO
Arthur Phillips & Co.
CHARTERED ACCOUNTANTS
508-509 Electric Railway Chambers
WINNIPEG - Man.
Cable Address—" Unravel "
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THE MONETARY TIMES
lilGHT Ol iiKAIN HKOKEK TO KECOVER LOSSES EFFECT OF SECTION 167 OF BILLS 01 EXCHANGE ACT
Notice of Death of Drawer of Cheque Held by Saskatchewan
Court to Terminate Duty of Bank to Meet It
Manitoba Court Holds That Where Client Did not Furnish
Margin, Broker is Entitled to Recover Losses
"/^NE who instructs his broker to sell for him wheat
^-^ which he iiKrees to deliver, and which it is the in-
tention of the parties shall be delivered, the broker causing
sales to be made to various persons in consequence of these
instructions, and who is unable to make delivery and
authorizes such broker to purchase sufficient other wheat to
close out these transactions is liable to the broker for any
loss which such broker sustains in carrying out such trans-
actions."
The above is in substance the judgment in the case of
Canadian Grain Co., Ltd., vs. Nichol. The facts of the case
were: In July, 1916, Nichol instructed the company to sell
on his account wheat for delivery in October, amounting to
9,000 bushels. The company through its Winnipeg agents
did so. After this wheat was sold, the price of wheat rapidly
rose. By the rules of the Winnipeg Grain Exchange it was
necessary to put up margins to protect the contracts of sale
against the rising price. Nichol did not have the money
and he asked the company to supply it, which they agreed to
do provided Nichol would undertake to deliver all the grain
sold on his account, and indemnify them against any loss
arising from his failure to so deliver. To this Nichol agreed
in writing, and the company put up the necessary sums' to
protect his contracts. On October 24 he notified the com-
pany that he could not make delivery of any wheat, and on
the same day instructed them to buy 9,000 bushels to fulfil
the contracts of sale which they had made on his behalf.
Brokers Sued for Amount Lost
The action was for the difference between what the com-
pany was obliged to pay for the wheat in October and the
amount coming to Nichol from the purchasers to whom the
company had sold 9,000 bushels on his behalf. The defences
relied on were: (1) That the contracts were illegal, being
contrary to sec. 23 of the Criminal Code, and (2) that the
company did not make privity of contract between two
principals.
The following parts of their Lordship's judgment give
their decision: —
"So far as the first objection goes, I agree with the
trial judge that that is disposed of by his finding of fact as
to the intention of the parties, that there was to be delivery
of wheat by Nichol. The trial judge, however, held that
the company did not make privity of contract between two
principals.
"So far as this is concerned, when the broker represent-
ing the defendant on the Grain Exchange sold the wheat of
the defendant to other brokers representing purchasers, then
it seems to me, that there was a binding contract entered
into for the sale and purchase of the defendant's wheat."
"The plaintiff (the company), should have judgment
against the defendant for $5,490.25 and costs."
ON appeal from the trial judgment in the case of Curley
vs. Briggs, the Saskatchewan Court held according to
the Bills of Exchange Act that from the date that the bank
receives notice of the death of the drawer of a cheque, pre-
sentment for payment is dispensed with because nothing
can be gained by such presentment, the bank's authority to
pay the cheque being terminated by notice of the death
and an action brought against the administrator for the
amount due should be framed as for money advanced to the
deceased, the right of the payee being subject to the condi-
tions under which the payee received the cheque.
The action was brought against Charles Briggs, ad-
ministrator of the estate of Thos. A. Drury, deceased, for
five cheques given by Drury in his lifetime to Curley. The
defences raised were: (1) That the cheques were given in
payment of a gambling debt, and (2) that there was no
evidence of presentment for payment or dishonor.
Elwood, J. A., in his written judgment, says in part,
"So far as the first defence is concerned, that in my opinion
is disposed of by the finding of the trial judge that the
cheques were not given for a gambling debt.
Notice of Death Conclusive
"So far as the second defence is concerned, sec. 107 of
the Bills of Exchange Act is in part as follows: 'Notice of
dishonor is dispensed with as regards the di'awer where . . .
(d) the drawee or acceptor is, as between himself and the
drawer, under no obligation to accept or pay the bill; (e) the
drawer has countermanded payment.'
"Section 167 of the Bills of Exchange Act in part is as
follows: 'The duty and authority of a bank to pay a cheque
drawn on it by its customer are determined by . . .
(b) notice of the customer's death.'
"I am of the opinion that the effect of sec. 167 is, that
from the date of the death of the drawer of the cheque, or
at any rate from the date that the bank would receive notice
of the death, presentment for payment would be dispensed
with, because nothing could be gained by such presentment.
Notice of the death, in effect, countermands the right of the
bank to pay the cheque. Notice of dishonour is also dis-
pensed with under sec. 107, because from the notice of the
death the bank is, as between itself and the drawer, under
no obligation to pay the cheque; in fact, it is not only under
no obligation, but its authority to pay the cheque is de-
termined.
"If I am correct in the conclusions I have reached above,
then it was not necessary in this case for the plaintiff to
allege either presentment or notice of dishonor."
SASKATCHEWAN FIRE INSURANCE AGENTS
CANADIAN NATIONAL TELEGRAPH SYSTEM
A reorganization of the Great Northwestern and the
Canadian National Telegraph Companies has been effected in
conjunction with the nationalization of the Grand Trunk and
the Canadian National Railways, and effective on January 1,
the two telegraph services were united under one name, Cana-
dian National Telegraphs.
Following is the personnel of the new company: Execu-
tive officers — George D. Perry, general manager; A. C. Mc-
Connell, secretary and auditor; D. E. Henry, treasurer. Com-
merical department — W. G. Barber, Toronto; L. S. Humes,
Montreal; J. G. Davies, Toronto, and J. F. McTaggart, Win-
nipeg. Traffic department- — Charles E. Davies, Toronto. Plant
department — W. J. Duckworth, Toronto. Supply department
— George Watt, Toronto. Commercial news department —
R. H. Hathaway, Toronto.
The campaign of the Saskatchewan Fire Insurance
Agents Association for members, launched on August 15
last, has resulted in 105 new members being enrolled. The
total membership now numbers 138. The association is work-
ing for unifomi rates of commission throughout the western
provinces and for improved regulations governing the issue
of agents' licenses in Saskatchewan.
J. C. JTillar, C.A., chief audUor, Canadian Wheat Board,
and W. J. Macdonald, C.A., assistant auditor, Canadian Wheat
Board, have entered into a partnership under the firm name
of Millar, Macdonald and Co., chartered accountants, with
offices at 428 Main Street, Winnipeg. The firm will specialize
in cost accounting, grain, income and business profits, war
taxation, etc.
January 28, 1921
THE MONETARY TIMES
35
^lllllllllllllllllllinMlllinilllMIIIIMIIIIIIIIIIIIIIIIIIItllllMIIIIIIIMIIIMIIIIIIIinilllllllllllllllllllllllllllllllllHIIIllllllllilllllllllllllllllllllllllllll^
I REPRESENTATIVE LEGAL FIRMS \
HiiiniiiiiiiiiiMiiiiiiiiuniiMiniiiiiniiiiiiiiiiMiiiiiiiiiMiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiuiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiriiiiiiin
BRANDON
J. p. Kilgour, K.C.
O. H. Foster
H. McQueen
KILGOUR, FOSTER & McQUEEN
Birriiteri, Solicitor*, Etc., Brandon, Man.
Solicitors for the Bank
Royal Bank of Canada I-
and Loan Society. Nor
Assurance Company.
of Montreal. The
amilton Provident
h American Life
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barristers, Solicitors. Etc.
Solicitors for Bank of Montreal, The Trust
and Loan Co of Canada, British Canadian
Trustee, ex.. He.
C. F. P. Conybeare, K.C, H W. Church, M.A.
R. R, Davidson, LL.B
Lethbridge • - • Alta.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT, SASK.
CALGARY
Charles F. Adams, K.C.
Bank of Montreal BIdg.
CALGARY - ALTA.
.B.Mackay, M. A., LL.B.
n, MA. LL.B.
LENT. MACKAY & MANN
Barrliten, Solieltarii. .Votarlea, Etc
las Grain Bachange Bldg . Calgary. Alberta
Cable Addren." Lento." Western UnionCode
Solicitors for The Standard Bank of Canada.
.The Northern Trusts Co. Associated Mort-
4aae Investors. &c. ^^^^^__
J A. Wrioht, LL.B
WRIGHT & WRIGHT
Barrisltrs, Solicilon, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. AC. Rutherford, K.CLL.D
P. C Jamieson, K C. Chas. H. Grant
S.H. McCu.TiR Cecil Rutherford
RUTHERFORD. JAMIESON
& GRANT
Barriatert, Solicitors, Etc.
514-18 McLcod Mdg. Edmonton, Alberta
Johnstone, Ritchie & Gray
Barristert, Solicitors, Notaries
LETHBRIDGE • Alberta
MEDICINE HAT
C. F. H. Long,
LL.B.
J. VV. SUEIOHT. B.A.
LONG
&
SLEIGHT
Barri»tert, etc.
MEDICINE
HAT
>nd BROOKS, Alta.
MOOSE JAW
Grayson, Emerwn & McTaggart
Barristers, Etc.
Solicitors— Bank of Montreal
Canadian Bank of Commerce
Moose Jaw • Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
SASKATOON
C. L DURIE, B.A. B. M. Wakelino
DURIE & WAKELING
Karrlster» and Solicitors
Solicitors for the Bank of Hamilton. The
Great West Permanent Loan Co. The
Monarch Life Assurance Co.
Cnnnila Rulldlns Saskatoon, Canada
Chas G.Locke. Major J. McAughey, O.B.B.
LOCKE & McAUGHEY
Barristers, Solicitors, Etc.
208 Canada Bailding
SASKATOON - CANADA
VANCOUVER
W. J. Bovfser. K C R L. Reid. K.C.
D S.Wallbridge A H. Douglas J. G, Gibson
BOWSER, REID, WALLBRIDGE
DOUGLAS St. GIBSON
Barristers, Solicitors, Etc.
Solicitors for Bank of .Montreal (Bank of
British North America Branch)
Yorkibire Bnildins, 525 Sermoar St.. V.neoaier. B.C.
Your Card here would ensure it being
seen by the principal financial and
commercial interests in Canada.
.4si about special rates for
this page.
WE BUY
WE SELL
Chauvin, Allsopp & Company^ Limited
FARM LANDS
And other good property. EDMONTON DISTRICT.
VALUATORS
Ground Floor. McLeod Building • Edmonton. Alta.
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK, BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Exchange
Calgary, Alta.
A. J. Pattison Jr. & Co.
.Members
Toronto Stock Exchange .Montreal Stock Exchange
Specialists Unlisted Securities
106 BAY STREET TORONTO
36
THE MONETARY TIMES
News of Industrial Development in Canada
Recent Feeling of Depression in the Pulp and Paper Trade was Without Grounds,
According to Officials— Supply and Demand of Newsprint Closely Balanced-
Canadian Cottons Makes Reductions in Wages— Cuts are not so Large as Those
by American Companies— Heavy Rail Orders in Store for Canadian Steel Plants
A FEELING of depression which recently came over the
•^*- pulp and paper industry, and which was reflected in
the stock market quotations, has been disposed of by officials
in the trade. An investigation of the business being done by
the Riordon Company, the largest producers of bleached
sulphite pulp in Canada, would prove that the depression is
not particularly serious, and also that the bottom has been
i-eached, and that new business is rapidly coming in. Re-
.siardless of a dull market, the Riordon Company has not
closed any of its plants, and at the present time is working
at 90 per cent, of full capacity. Deliveries were for a time
slightly curtailed, but in an enterprise the size of the Riordon,
a temporary let-up in deliveries is not particularly serious.
The prices obtained by the company are good, and the busi-
ness of the coming year bids fair to equal that of last, which
was the record year in the company's history, that is, to
judge from the present outlook.
With regard to the newsprint outlook, George Cahoon, jr.,
of the Laurentide Company, Ltd., remarks: "The demand for
this commodity has been more uniform than for any other
commodity, and reflects very prosperous conditions in the
newspaper industry. Prices for paper made by the large pro-
ducers are at the maximum. No price adjustment has been
heard of, and none is possible until after the first quarter of
the year. There is nothing in the general outlook that would
alter the belief that the newsprint industry is in a very
healthy condition, due to the fact that the supply and demand
are very closely balanced. Whatever may happen in the
future, no readjustment in newsprint prices will be out of
proportion to the readjustment in prices of all commodities
that go into the making of newsprint."
On the book and high-grade paper outlook, C. Howard
Smith, of the Howard Smith Paper Mills, is quoted as saying:
"There has been a lull in the high-grade and book paper
market, and some of the mills have closed down, considering
it an opportune time to do overhauling. As far as our plants
are concerned, they are working at 75 per cent, capacity,
with business picking up sufficiently to warrant the belief
that within a month it will be again normal. As far as we
can see, with readjustment at both ends, the mills making
our grades of paper should average out in 1921 on a par
with 1920."
J. H. A. Acer, head of J. H. A. Acer and Company, has
expressed his views on the kraft paper situation as follows:
"Those who use packing and wrapping paper, etc., have still
supplies on hand, and these must be worked off before there
can be any return to normal business with the kraft paper
mills. The mills have no stocks, and are working to fill in-
coming orders. When the present supplies in the hands of
the consumer are worked off will depend on the increase in
business in all lines of commodities, and that part is hard
to predict. However, lately we have noticed a slightly better
demand, although world-wide, it is still dull."
The Kaministiquia Pulp and Paper Company's new pulp
mill in Port Arthur, Ont., went into complete operation this
week. The slasher mill has been running for a couple of
months and has prepared 1,500 cords of pulp for the grinder
mill and the wet-room, which later commenced recently to
make it into the commercial pulp. The company has its
output sold for six months ahead. Plans are under way for
increasing the present capacity of 30 tons per day to 100.
At the Coast
The pulp and paper situation in British Columbia can
be described as being satisfactory. The organization of the
Whalen Pulp and Paper Company is undergoing several
changes, which, when completed, will enable the company
to proceed actively in its operations.
The plant of the Western Canada Pulp and Paper Com-
pany will be put into operation early next month, according
to Mr. W. O'Connor, secretary of the company. The plant
is located at Port Mellon, about thirty miles north of Van-
couver, and will have a capacity of about 40 tons of pulp
a day. While the output of the plant will be governed to a
great extent by the demand, in view of the fact that a very
large proportion will be for export, it is believed by the
company's officials that within a short time the plant will
be turning out pulp to the limit of its capacity.
Canadian Cottons Cut Wages
Employees at the Canadian Cottons, Ltd., mill at Marys-
ville, N.B., have been notified of a reduction of 12% per cent
in all wages. Individual notices have been sent to each of
the 750 employees at the mill, and it is stated that the re-
duction is being made general at all of the company's eight
mills, from St. John to Hamilton, Ont., which employ ap-
proximately 3,500 people.
The notices were contained in a circular letter, which
set forth the situation from the standpoint of the company.
Business conditions were explained, and the employees were
told that the company had cut prices in an effort to stimu-
late trade, and the workers would have to take some portion
of the lowering of prices in the way of reduced wages. The
mill at Marysville and all others of the Canadian Cottons
system, except that at Milltown, N.B., have been operating
only four days a week for some time past, closing from
Thursday night until Monday, and it is said that the short
hours will not be discontinued as a result of the wage reduc-
tion until business picks up, and orders are renewed by the
wholesale trade.
It is not expected, however, that any serious action will
result. Textile prices are being lowered and wages must be
reduced accordingly. In the United States the textile mills
recently cut wages 22% per cent, in a good many instances.
Another Announcement on Rails
A report in these columns recently to the effect that
orders of the Canadian railways for steel railways would
keep our steel plants busy during the coming year, has not
yet been offici»lly confirmed, but further information has
been brought to light which in itself is practically confirma-
tion. Mr. Ball, who is engaged in the capacity of steel in-
spector for Robert W. Hunt and Co., with territory at Syd-
ney, New Glasgow, and Sault Ste. Marie, forecasts big busi-
ness in Canada in steel manufacturing as soon as the market
for steel rails becomes steadier.
The steel plant at the Soo is completely shut down, and
from present indications will remain so for some weeks yet.
The company at Sault Ste. Marie is looking forward to a big
season's work in rolling r&ils for the Canadian railways.
Both the C.N.R. and the C.P.R. systems require immense rail
tonnage for renewals and extensions, but at the moment the
market is steadily falling and to place orders would more than
likely mean paying at least $4 to $5 per ton more for rails
than the price which will be obtained later on. The C.N.R. is
anxious to arrange for its requirements at once, but to do so
would place the management in the position of purchasing
on a declining market and paying more for its rails than the
C.P.R. would be able to obtain their supplies later on. And
for the great quantity required this would run up into a very
considerable sum in excess of the outlay to be paid by the
competing system.
The Canadian railway orders for the Dominion Iron and
Steel Co., which will be booked in due course, will keep it
January 28, 1921
THE MONETARY TIMES
The Imperial
Guarantee and Accident
Insvireuice Compeuiy
of Canada
Head Office, 46 KING ST. WEST, TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $200,000.00
Authorized Capital - - $1,000,000.00
Subscribed Capital - - $1,000,000.00
Government Deposits $lll,000.0fl
f r^ M r> 1^ ]\I GUARANTEE AND
*-• ^-^ *^ '^ ^-^ ^^ ACCIDENT COY., Limited
Head Office for Canada - Toronto
Employers' Liability. Elevator. Contract. Personal Accident. Fidelity
Guarantee, Internal Revenue, Sickness. Court Bonds.
Teams and Automohile.
AND FIRE INSURANCE
The Western Mutual Fire Insurance Co.
Head Office - Didsbury, Alberta
Prtsident^n. B. ATKINS, M.L.A.
PARKER R. REED.
Manasini Director
LARGEST ALBERTA
FIRE MUTUAL
CANADIAN STRONG PROGRESSIVE
^iffiB; fffs^ymmn^^g^smsimt
FIRE INSURANCE
AT TARIFF RATES
Merchants Casualty Co.
Head Office : Winnipeg, Man.
The most progressive company in Cana
supervision of the Dominion and Provincia
Embracing the entire Dominion of Canada.
SALESMEN NOTE !
Our accident and health policy is the most liberal protection offered
for a premium of $1.00 per month and up.
Covers over 2.500 different diseases.
Pays for Life if disabled through Accident or
Illness.
Fifty per cent extra if confined to hospital.
Pays for Accidental Death. Quarantine, Sur-
geon Fees for minor injuries, also for death of
fieneficiary and children of the Insured.
Good Opening* for Line Agent*
Eastern Head Office, Royal Bank Bldg.. Toronto
Home Office Electric Railway Chambers,
Winnipeg. Man.
Commercial Union Assurance Co.
Limited, of London. England
Capital Kully Subscribed 8 14,750,000
Capital Paid Up 7,375,000
Total Annual Income Exceeds "5,000,000
Total Tuiids Kxceed -209. 000, 000
lleiiil 4lfUre Cnnadlau Branch :
COMMERCIAL UNION BUILDING - MONTREAL
H ALBERT J. KERR, AssiBTAST AtANACBK. W. S. JOPLING. Manaoer
Toronto Office • 49 Weilingiton Street East
OBO. R. HARORAFT. General Agent for Toronto and County of York
iinimniiiHiiiiiiiiiini
Automobile— 1 920— Season
Policies to cover ANY or ALL motoring: risks
ATTRACTIVE AGENCY CONTRACTS
British Empire Fire Underwriters
82-88 King Street East, Toronto
iiimimiiiniiiiiimnii
GENERAL
ACCIDENT FIRE AND LIFE
ASSURANCE CORPORATION, LIMITED, OF PERTH, SCOTLAND
HBLEG HOWLAND. THOS. H. HALL.
Canadian Advisory Director Manager for Canada
Toronto Agents. B. L. McLEAN. LIMITED
nilABPU HE
'lUIIHimil LI I
MEAD OFFICE - WINNIPEG-
FARMERS
FIRE & HAIL INSURANCE COMPANY
FIRE, HAIL AND AUTOMOBILE INSURANCE
Head OKice, CALGARY. Saskatchewan Office, REGINA
iM. P. JOHNSTON. .Managing Director
DOUBLE INDEMNITY
TWICE AS MUCH LIFE ASSURANCE FOR THE SAME PREMIUM
IF DEATH RESULTS FROM ANY ACCIDENT.-ENQUIRE-
THE MONETARY TIMES
going at full capacity for the balance of the year. The two
big railway corporations when they eventually award their
contracts will provide sufficient business to keep the Sault
Ste. Marie and the Sydney plants working full time for prac-
tically the br.'lance of the season, the price is expected will
be a very close one and the margin of profit rather meagre,
but steady employment at the Canadian mills will brighten
the steel business generally.
The Kraft-MacLaren Cheese Co., Ltd., which was recently
incorporated in Montreal with a> capital of $1,000,000, has
under construction in Montreal a factory, refrigerating plant
and warehouse to co^t $200,000.
(Juebec. — American Optical Co. of Canada, Ltd., Nicolet,
$500,000; Commercial Brokers, Ltd., Montreal, $10,000; Mont-
real Suburban Homes, Inc., Montreal, $99,000; Hydraulic
Machinery, Ltd., Montreal, $500,000; Montreal Garage, Ltd.,
Montreal, $95,000.
Saskatchewan. — Midwest Insurance Co., Ltd., Regina,
$500,000; Interprovincial Investment Co., Ltd., Moose Jaw,
$25,000; Assiniboia Athletic Club, Ltd., Assiniboia. $3,000;
Margo Sport and Agricultural Association, Ltd., Margo,
$500; Chaplin Farmers Elevator and Trading Co.. Ltd.,
Chaplin, $50,000; Alexander and Baird, Moose Jaw, $20,000;
Western Hide and Fur Co., Ltd., Prince Alberta, $10,000;
Mitchell's, Ltd., Moose Jaw, $25,000; Wilson-Scott, Ltd.,
Willow Bunch, $65,000; Cross Commission Co., Ltd., Moose
Jaw, $20,000.
NEW INCORPORATIONS
Steel Realty Development Corp., Ltd., Toronto, $10,000,000—
J. B. Booth, Ltd., Ottawa, $10.000.000— Prince Rupert
Pulp and Paper Co., Ltd., Vancouver, $4,000,000
The following is a list of companies recently incorporated
under Dominion charter, with the head office and authorized
capital, as follows: —
Sapco Springs Co., Ltd., Toronto, $100,000; Steel Realty
Development Corp., Ltd., Toronto, $10,000,000; Parsons De-
tective Agency, Ltd., Montreal, $50,000; Filmcraft Industries,
Ltd., Toronto, $260,000; Albion Pairing and Construction Co.,
Ltd., Hamilton, $150,000; J. B. Booth, Ltd., Ottawa, $10,-
000,000; A. M. Mouat and Co., Ltd., Calgary, $20,000; Roof-
craft Co., Ltd., Winnipeg, $200,000; Premier Sign Systems,
Ltd., Toronto, $50,000; Monitor Stove Co., Ltd., Toronto,
$50,000.
Provincial Charter
The following is a list of companies recently incorporated
under provincial charter: —
British Columbia. — Rainier Bottling Works, Ltd., Van-
couver, $30,000; British Columbia Japanese Club, Ltd., Van-
couver, $10,000; Strand Buffet Co., Ltd., Vancouver, $10,000;
Fernie Motor Car Co., Ltd., Pernie, $50,000; Rosenbaum
Bros., Ltd., Vancouver, $10,000; Vancouver Oyster and Fish
Co., Ltd., Vancouver, $10,000; Crown Paint Co., Ltd., Van-
couver, $100,000; Westminster Iron Works, Ltd., New West-
minster, $100,000; H. Samuel Ives Fish Market, Ltd., Van-
couver, $10,000; Prince Rupert Pulp and Paper Co., Ltd.,
Vancouver, $4,000,000; Fraser Lake CoUiei-ies, Ltd., Prince
Rupert, $600,000; Western Canada Entertainments, Ltd.,
Vancouver, $50,000; Hanbury Timber Products, Ltd., Van-
couver, $20,000; United Empire Club, Ltd., Vancouver,
$10,000.
New Brunswick. — Cremo Specialties, Ltd., St. John, $49,-
000; Burpee and Ingleton, Ltd., St. John, $9,900.
Ontario. — Turnbull Mines of Porcupine, .Ltd., Toronto,
$2,000,000; Canadian Production Tool Co., Ltd., Walkerville,,
$40,000; Ontario Bricklaying Co., Ltd., Toronto, $40,000;
Billle Burke Dress Co., Ltd., Toronto, $40,000; .Automotive
Products Co., Ltd., Toronto, $100,000; A. B. Rosenblott and
Co., Ltd., Toronto, $100,000; Peninsula Hotel and .-Vmusement
Co., Ltd., St. Catharines, $175,000; Mount Albert Cemetery
Co., Ltd., Mount Albert, $10,000; Queen City Coal and Coke
Co., Ltd., Toronto, $40,000; McEachern-Greenway-Coutts,
Ltd., Toronto, $40,000; E. Lankin and Son, Ltd., Toronto,
$40,000; Islet Exploration Co., Ltd., Port Arthur, $250,000;
Globe Code-Standard Electric Co., Ltd., Hamilton, $40,000;
H. W. Tisdall and Son, Ltd., Toronto, $100,000; Scott Coal
Co., Ltd., Toronto, $300,000; Big Win Oil and Gas Co., Ltd.,
Toronto, $500,000; Solomons-Bochner Fur Co., Ltd., Toronto,
$40,000; Society Ladies' Wear, Ltd., Toronto, $40,000; M.
Stone Clothing Manufacturing Co., Ltd., Toronto, $100,000;
Fournier Manufacturing Co.. Ltd., Windsor, $50,000; Com-
monwealth Theatres, Ltd., oTronto, $250,000; .4bdelh-Aziz,
Ltd., St. Thomas, $100,000; Brant Creameries, Ltd., Brant-
ford, $500,000; R. Cameron, Ltd., Toronto, $40,000; Windsor
Orange Hall Co., Ltd., Windsor, $40,000; Woodland Estates,
Ltd., Toronto, $100,000; Nelson Press, Lt<i., Toronto, $100,-
000; Windsor Lumber Co., Ltd., Windsor, $100,000.
INSURANCE NOTES
The Stuyvesant Insurance Company, of New York City,
which has been operating in Saskatchewan for the last year
or so, will not renew its Saskatchewan license for 1921. A
notice to this effect has been filed with Arthur E. Fisher,
superintendent of insurance for the province. A numl>er of
companies which have underwritten insurance in the province
in the past are not renewing their licenses this year, ac-
cording to Mr. Fisher. On the other hand, a number of new
companies are applying for licenses, and the present outlook
is for a larger number of companies doing insurance business
in Saskatchewan this year than was the case last year.
Application will be made by the Dominion Life Assurance
Company at the next session of parliament of the Dominion
for amendments to its chai-ter by repealing section thirteen,
which requires the company to maintain three separate ac-
counts of the business transacted by it in the "general." the
"abstainers' " and the "women's" sections, and by re-enacting
as section thirteen the following provisions of the original
section: The company may establish a section on the prin-
ciple of non-participation in profits. In the distribution of
profits the directors shall allot to the policyholders in the
participating- section of the company at least nine-tenths of
the profits declared from time to time, which shall be payable
as the directors by by-laws or regulations from time to time
determine.
J. T. McCay, general agent at Oxbow, Sask., has been
appointed district manager for northern Alberta by the
Mutual Life of Canada to fill the vacancy following the ap-
pointment of Mr. Reany as superintendent of agencies. W. C.
Walsh becomes general agent for southeastern Saskatchewan
in succession to Mr. McCay.
Arrangements for the writing of general fire insurance
in Canada are proceeding apace by the Motor Union Insur-
ance Company, and it is expected that business will be ac-
cepted some time in February.
The employees of the Robin Hood Mills, Moose Jaw.
Sask., have nearly completed the organization of an insur-
ance company for the sole benefit of the employees at the
mill, it having been found necessary to incorporate the com-
pany. The insurance scheme will be worked by the em-
ployees paying 1 per cent, of their wages each week to the
insurance fund, while the Robin Hood Milling Company will
pay an equal amount, and out of the fund so established each
worker will be paid two-thirds of his wages in case of illness
or accident, which would not be covered by the Workmen's-
Compensation Act, so that the workers at the mill will have
protection in case of illness or in case of accidents which may
happen outside the scope of their employment.
The Security
Trust
Company,
Limited
Head Office
-
Calgary,
Alberta
Liquidator, Trustee
, Receiver
Stock and Bond
Brokers,
Administrator, Executor.
General Financial Agents.
W. H. CONNACHER
Pres. and M.T
aging Director |
./anuary 28, ly21
THE MONETARY TIMES
39
Confederation Life
ASSOCIATION
INSURANCE IN FORCE, $133,000,000.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL AP-
PROVED PLANS
HEAD OFFICE
TORONTO
" Solid as the Continent "
Throughout its entire history the North American Life
has lived up to its motto ' ' Solid as the Continent." Insurance
in Force, Assets and Net Surplus all show <x steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
SOLID .A.S THE CONTINENT
HEAD OFFICE
TORONTO
Important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE - WINNIPEG. MAN.
Assurances, .New and Kevive<l 81 .21 1,4J7 00
Premiums on same . . 43,890 00
.'Vssurances in Force - 3,458,93900
Total Premium Income 109,586.(13
Policy Reserves ■ 211,497.00
Admitted Assets 296,430 62
Average Policy ... - - 2,237,50
("ollected in cash per 81,000 insurance in force 31 7.S
For particulars of a good agency apply to
ADAM REID, Managing Director - Winnipeg.
Insuring the Motive Power
The object of Business Insurance is to insure the "brains" of an orK.in.
i/ation. Knowledge, combined with aiiministrative ability, is invaluable.
Every business, large or small, depends primarily upon one or more
experienced leaders. The death of any one of them would result ma heavy
financial loss. There would be heavy gomg until the deceased oPHcial
was replaced by someone of equal ability. The possession of a policy of
msurance payable to the firm in the event of the death of such a leader
IS essential. Joint policies payable on the death of the lirst partner, or
(preferably) separate policies on the lives of the individual partners in
favor of the survivors are issued by The Mutual Life of Canada. It will
be the object of the Company to adapt each Business Policy to the parti-
cular requirements of the insuring firm. Consult our representative.
He- will be glad to advise you regarding business insurance
The Mutual Life Assurance Co. of Canada
Waterloo
HUMK CRONVN. MP,,
Ontario
CO-OPERATIVE SERVICE
'ro Pulicyhukcrs between i he Company and the >lgents is the secret of our
* success. Every representative is given the uimost assistance, but he
must look after our clients' interests. During the last i\ years Tke CodUxdUI
Life has built an enviable reputation lor prompt payment of claims.
Write for booklet. "«lir Htst Advrrllarrri." l-or Managers positions in On-
tario, apply wuh nfcrericc-;, statmg experience, etc., to .>(. .«. ttCAVKK.
Easlerii Siipirliiiinili-iii, nt llrnil »ltliT
THE CONTINENTAL LIFE INSURANCE CT3.
Head Office
TORONTO. ONTARIO
ENDOWMENTS AT LIFE RATES
ISSLFU ONLY HY
THE LONDON LIFE INSURANCE CO.
Head Office ... LONDON, CANADA
Profit Results in this Company 70°, better than Estimates,
POLICIES "GOOD AS OOLI)."
REPEAT APPLICATIONS
Hundreds of Cireat-West Policyholders,
needing more insurance, have applied
to The Great-West Life.
Experience has shown them that no
better Policies exist.
THE GREAT- WEST LIFE ASSURANCE COMPANY
UEPT. • K"
HEAD OFFICE - WINNIPEG
The Western Empire
Life Assurance Connpany
Head Office : 701 Somerset Building, Winnipeg, Man.
SASKATOON
EDMONTON
VANCOUVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office for Canada, Hamilton, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost.
All Policies dividend paying and non-assessable.
\ORMA.\ S. ,IONES. .ManaRtr K. .1. .MAHONY. .Asst M.m:iger
Always After Agents
FOR
Fine Fields
Considerable desirable territory is open for negotiation with
men who would make capable and alert representatives.
Union Mutual Life Insurance Co.
Portland, Maine
Address: .ALBERT E. AWDE, Supl. of Agencies
F. J. ATKINSON, Manager for Ontario,
303 Manning Chambers, 72 Queen St. West, Toronto, Ontario
WALTER I. JOSEPH. Manager for Quebec and Eastern Ontario,
414-415 Dominion Express Building. Montreal, P.Q.
40
THE MONETARY TIMES
Volume 66
News of Municipal Finance
Saskatchewan Minister of Municipal Aftairs Takes Objection to Adverse Criticism of Western Munici-
palities—Quebec Government Will not Force Annexations — Dwelling House Exemption By-Law in Toronto
Will not be Operative Until 1922 — Tax Collections in Moose Jaw and Saskatoon Exceed 1919 Returns
OBJECTION is taken by the Hon. Geo. Langley, minister
of municipal affairs for Saskatchewan, to articles which
appeared recently in a contemporary, which adversely criti-
cized the bonds of municipalities in western Canada and es-
pecially in Saskatchewan. Mr. Langley, who has gone to
some length to explain his case says: —
"I am not prepared to say that all municipal authorities
in Saskatchewan have at all times acted wisely in their bor-
rowings. Unfortunately, we passed through, during the
years 1909-12 inclusive, a boom period; and during this period
the value of real estate particularly wa-s boosted very much
beyond its actual value — boosted in many cases to double its
actual value. A great deal of property changed hands dur-
ing the boom period and very large profits were made by
the 'boosting' speculators. The spirit of outlay and expen-
diture founded on these excessive values was not confined to
private parties but found expression in quite a number of
our municipal councils. A willingness to spend thought-
lessly and to saddle the future with responsibility for these
expenditures found its way into practice in the case of a
number of the municipal organizations in the province; and
there appeared to be at that time an equal willingness on
the part of those representing the investing public to loan
their money to the municipal bodies to which I have referred.
"Cases might be mentioned where terms were accepted
by the municipalities, and taken advantage of by investors,
which should have counselled caution to those lending the
money; but the spirit of 'boost' and faith in a-n apparently
rosy future deprived both borrowers and lenders of that care
and caution which should be exercised in connection with such
matters. It was inevitable that chickens hatched under these
peculiar circumstances should at a later date come home to
roost. The thing that has been somewhat surprising to me
is that so few of our municipalities should have encountered
difficulty in meeting their obligations. The number might be
counted on the fingers of one hand, and practically everyone
of these municipalities has been able to make arrangements
that give promise of fully meeting the liabilities of the bor-
rowers and the just demands of the lenders.
Hold No Responsibility
"The disappointment that has been manifested among
the agents of the bondholders and given expression to, has
arisen not so much from difficulties between the borrower and
the lender, as from the strange assumption on the part of
those who make the bondholder's complaint that the provin-
cial government should in all cases where financial difficul-
ties have arisen in a municipality, turn the municipal bonds
into provincial bonds. When these loans were contracted, it
was perfectly well understood that the securities were muni-
cipal securities. There was never any suggestion of any
kind made at any time that in case of difficulty the munici-
pality's trouble would be accepted by the provincial govern-
ment and provided for out of the funds of the province.
The interest charged by the lenders was always arranged
on a purely municipal basis, and was higher or lower, accord-
ing to the standing and prospects of the municipality. This
being the case, there is no ground for the complaint that is
being made against the provincial government. The 'kick'
that is being made is not made because of widespread de-
falcations— because, as a matter of fact, there has not been
anything of the sort; it is being made in the elusive hope that
by making the complaint loud enough and repeatedly reiter-
ating it, the provincial government may be driven into the
position of guaranteeing these securities.
"It cannot be too emphatically stated that these gentle-
men might better save their breadth; as the whole question
has been canvassed with the utmost seriousness and care by
the provincial government, and the government has come to
the conclusion, which is deliberate and final, that it will not
accept responsibility in these matters. It will lend itself, as
between the bondholders and the few municipalities involved,
to regulate the terms of repayment in any manner giving
promise of the full payment of its liabilities by the munici-
pality and the avoidance of loss on the part of the bond-
holders; but beyond this it certainly will not go."
Moose Jaw, Sask.— Tax collections for 1920 totalled $925,-
420, made up of current taxes $770,.308, and arrears $155,112.
The total levy was $1,041,986.
Lethbridge, Alta. — During the eleven months ended No-
vember, 1920, the street railway accumulated a deficit of
$37,579, as compared with a loss of $35,737 for the whole
of 1919. The electric department had a surplus for the
eleven months of $5,978.
Saskatoon, Sask. — Net assessment for 1921 is $28,727,-
567, made up as follows: Land, $23,912,110; improvements,
$7,013,170; exemptions, $3,071,635; net land and improvements,
$27,853,645; business, $386,.549; income, $487,373; total net,
$28,727,567. The total quoted under the item of improve-
ments, represents only the taxable portion, that is to say, 35
per cent, of the total assessment of improvements.
Tax collections in 1920 totalled $1,183,813, as compared
with $1,103,159 in 1919.
Winnipeg, Man. — Tax collections in the city from May
1 until December 31, 1920, amounted to $6,644,797, accord-
ing to figures revealed in a report of H. R. Pattinson, city
tax collector. The largest single amount collected was from
the municipal and school tax, shown at $4,596,792 and the
current levy and arrears of the Water district, $650,234 with
$343,665 realized from pavement taxes. Arrears amount-
ing to large sums were collected in connection with each
item.
W. H. Evanson, city comptroller, has issued a report
showing that the city has effected a saving of $60,000 since
1917 by the self-carrying employees' insurance scheme under
workmen's compensation arrangements.
Toronto, Ont. — The dwelling house exemption by-law
which was passed by the ratepayers at the last municipal
elections, and which provides for partial exemption on houses
which are not assessed for more than $4,000 will not be ap-
plied in the city this year. The reason for this is that the
work on the tax collectors' rolls has reached a stage at which
a revision, as a result of the operation of the by-la>w would
mean a delay in tax collections this year, which would em-
barrass the city treasurer. It is estimated that interest to
the amount of $150,000 would have to be paid on temporary
loans, which would have to be made if the first instalment
of taxes was delayed. In addition there would be the cost of
additional labor in revising the rolls. Furthermore, the city
has already received loans and been assured of assistance
from the banks to the extent of $7,000,000, on the distinct
understanding that these loans would be repaid not later than
early in June. This arrangement was made in good faith
and in the belief that the first instalment of taxes would be
received at the usual time.
Calgary, Alta. — A proposal that the city put the money,
which it now has on deposit with CaJgary banks drawing S
per cent, intei'est, on deposit instead with the provincial
government treasury, "payable on demand," to draw 5 per
cent, interest, is made by Aid. J. S. Arnold. At the present
time the city has on deposit in Calgary banks approximately
$300,000 of funds belonging to Spitzer, Rorick and Co., on
which it is paying that company 6 per cent, interest and
1X1C< m.\JCiBii.ARl 1 I DO. Sij a
C.P.R. BUILDING
TORONTO
INVe«TMENT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
REAL ESTATE
Farm Lands City Properties
Building Management Rentals
OSLER, HAMMOND & NANTON
WINNIPEG
NEW ISSUE
City of St. Catharines
6% COUPON BONDS
Maturities : 1922-1926
Principal and semi-annual interest (April 20
and October 20) payable in Toronto or St.
Catharines; denomination $500 and $1,000.
PRICE TO YIELD 6.40%
Harris, Forbes & Company
INCORPORATED
C. P. R. Building 21 St. John Street
TORONTO MONTREAL
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur Bldg., WINNIPEG, Canada
Membera of WinnipcK Real Estate EzchanKc Winnipeg Stock Ezchanse
C. H. BURGESS & CO.
Government and
Municipal Bonds
14 King Street East
Toronto
WINSLOW & COMPANY
Stock and Bond Brokers
GOVERNMENT AND
MUNICIPAL BONDS
INDUSTRIAL SECURITIES
300 Nanton Building, Winnipeg
both for safety of principa) and surely of
turn is this
Exceptional —
— both for safety of princif
return is this
7% Canadian Industrial Bond
with a bonus of Common Stock payable in New
York funds.
Ask us for full particulars
R. M. HEFFERNAN & CO., Limited
/;VF£5rA/£.\T BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
THE MONETARY TIMES
Volume 66.
drawing only 3 per cent, interest from the banks, so that the
city is losing 3 per cent, interest on the deposits. This money
is being held on account of the adverse condition of Cana-
dian exchange, as a great loss would be entailed in sending
it to the United States at the present time in repayment of
the Spitzer-Rorick loan. Mr. Arnold says his proposal would
convert this 3 per cent, interest loss, amounting to $9,000 a
year, into a loss of only 1 per cent., or $3,000 a- year. Also,
the city has on deposit with the bank approximately .$500,000
of sinking fund money, on which it draws only 3 per cent,
interest. By putting the money on deposit with the^provir.-
cial treasury at 5 per cent., there would be a gain of 2 per
cent, interest on this sum. Mr. Arnold, however, proposes
that only about .$200,000 or $2.50,000 of the sinking funds iae
put in the provincial treasury at the 5 per cent, rate to
begin with.
Montreal, Que. — Certainly it will not be the government
of the province of Quebec which will attempt to force the
municipalities of the island of Montreal into annexation with
the big city. Hon. L. A. Taschereau, prime minister, in re-
ceiving a delegation of mayors, aldermen and prominent
citizens of the outlying municipalities last week, made this
fact clear. The premier said that there was no demand be-
fore the legislature for annexations, and he predicted that
if there was such a dema.nd, those who were behind the move-
ment would have a stiff battle. Mr. Taschereau took the
stand that it would not be fair to throw the municipalities
into the arms of Montreal agK.inst their will, nor to impose
on them a form of government which they were opposed to.
Government and Municipal Bond Market
Ontario Sells Ten Millions of Securities for Hydro Purposes-
Province Paid 6.28 Per Cent, for Its Money— Victories Move Up,
with the Exception of Taxable Issues— Several Municipal Issues
rpHERE was no sign of weakening in the bond market this Calgary has issued only a comparatively small amount
A week. Victory bonds moved up, with the exception of of bonds of this description, payable in London and Calgary,
the taxable issues, while municipalities received fairly and the amount of saving either way is not large, but it is
good prices for their securities. A set-bask is regarded as the principle at stake. When the city redeemed some of these
improbable, and it is felt that the market is established bonds just prior to the war, when sterling was at a premium,
definitely at its present levels, and that there will be a_grad- the city had to pay the premium, although the bondholders
ual upward movement. There will no doubt be some fluctua- did not get the advantage. The aldermen see no reason why
tions of an adverse nature, but these, it is thought, will be the city should have to stand a loss on the exchange. There
temporary and not of a serious nature. The price move- is about $17,500 of this interest due in January, and at the
ment of Victories in the past two weeks is illustrated by the current rate of exchange, the loss, if the city paid in Canadian
following figures:— currency, would be about $1,750 for the semi-annual period.
Control Last week. This week. ^ . _ „ .
price. High. Low. High. Low. Com.ng Offerings
1922 98 98% 97'/4 99% 98 The following is a list of debentures offered for sale,
1927 97 98% 97% 98% 97% particulars of which have been given in this or previous
1937 98 99% 99 10014 99 issues:—
1923 98 97% 961/2 , 99% 97 • Tenders
1933 961/2 98 95% 98% 971/2 Borrower. Amount. Rate ';. Maturity. close.
1924 97 97 96 96% 95% Gladstone, Man $ 11,000 6 20-years Feb. 1
1934 93 95% 95 95% 95 Regina P.S.D., Sask. 250,000 6V2 30-years Feb. 1
Brockville, Ont 143,964 6 10-instal. Feb. 4
Ontario Sells Ten Millions Portage la Prairie,
_, . . , , Man 54,000 6 20-years Feb. 11
The prmcipal event of the week was the sale of $10,-
000,000 6 per cent. 20-year province of Ontario bonds, the pro- Kitchener, Ont.— Tenders will be received until Febru-
ceeds of which will be used for Hydro, to a syndicate of ai'y 3, 1921, for the purchase of $20,000 6 per cent. 20-instal-
twenty-four Toronto bond houses headed by A. "jarvis and >"ent debentures.
Co. The province got a price of 96.787 and accrued interest. Portage la Prairie, Man. — Tenders will be received until
which is on about a 6.28 per cent, basis. This compares with February 11, 1921, for the purchase of $20,000 6 per cent.
6.80 per cent., which was paid for the issue of $16,000,000 20-year waterworks debentures, and $34,000 6 per cent. 20-
made in December last. The present issue, as in December, year electric light debentures. (See advertisement else-
was heavily oversubscribed. where in this issue.)
Winnipeg, Man. — When the city engaged in a campaign
Will Pay in Sterling to sell $1,500,000 6 per cent. 30-year hydro-electric bonds
,,,.,,. . „ , . to local citizens last fall, the efforts were described by some
Members of the finance committee of the city council ^^ y^^-^^ f^^il^^ ^„^ tj^^^. ^^^.^ to some extent, as only
have decided to confirm the action of City Treasurer J. H. $175,000 were disposed of in the manner intended, the bal-
Mercerm declining to pay ,n Calgary in Canadian currency, ^„^g ^^-^^^ taken up by A. E. Ames and Co. The city
interest coupons of city of Calgary bonds made payable m ^^^^-^^^ gg gg „„ the sale, which is on a 6.25 per cent, basis.
London and Calgary m British pounds sterling. There are
approximately $700,000 of such AVz per cent, bonds issued. Debenture Notes
and since the removal of the embargo an export of securities,
holders of them in the old country have been endeavoring to Fort Garry, Man.— The municipality will raise $50,000
have them paid in Calgary in Canadian money to take ad- for school purposes.
vantage of the exchange rate, although the bonds bear the St. Vital, Man.— .-V by-law authorizing the raising of
printed statement that they are repayable, interest and prin- $75,000 for school construction, has been defeated,
cipal, in pounds sterling. Alderman F. R. Freeze moved, and Edmonds, B.C. — The municipality proposes selling $134,-
the committee adopted, a resolution that the . treasurer be 000 debentures over the counter.
confirmed "in paying the bonds in sterling at the current Decker S.D., Man.. — .A^ll tenders were rejected on the
late of exchange." $40,000 7 per cent, issue of debentures. The securities are
January 28, 1921
THE MONETARY TIMES
43
Make the Most of Your
Investments
When planning- an investment, it is ad-
visable to obtain the one which affords
the maximum of security, the most con-
venient facilities for collecting interest,
and the highest yield consistent with the
two.
Such an investment is to be found in
Canadian Government and Municipal
Bonds, which, at existing prices, provide
interest returns ranging from 6.10'-
to Ifc.
Writv; for a list of these bonds.
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng
'^f^S^^^^^^^^^^
r^
aassBEEan
Each Office
Is a Market
We maintain thoroughly equipped
offices and active organizations in
Montreal, Toronto, Halifax, St.
John, Winnipeg, \'ancouver, New
York, and London, England.
We buy, sell and exchange \'ictory Konds
and Provincial, Municipal and Corporation
Konds and Securities.
If you wish to buy, sell or exchanjje invest
ments, call at, ur write to, our office neares
vou.
Royal S
ecurities
U I
TORONTO
WINNIPEG
ORATION
M I T E D
.MONTKKAL
HALIFAX ST. JOHN. N.B.
VANCOUVER NEW YORK
LONDON, Ens.
tia^iim>^^JAvtJKy^a^^.t^.mj^^^^^
W L, McKINNO.N
IM'AN H, I'l-TTKS
We Buy an
d Sell
VICTORY
BONDS
W. L.
at Current
Prices
McKINNON & CO.
Covernment and M
jnicipal Bonds
McKINNON
BUILDING
-:• TORONTO
Telephone Ade
laide 3870
l'iIilii'»MI!lffillllllllilllillillilllllllllllilllllllllllllllllllU
JANUARY
INVESTMENTS
Security ■■., Due To Yield %
Victory Bonds (Tax Free) 5'4 All Maturities At Market
•• (Tax Free) 5^,
War Loan (Tax Free) 5 '• •■
Province of Ontario , 6
. . 6
City of Windsor. Ontario 5,'-^
•• 6
" Niagara Falls, Ont. 5
Town of North Sydney,
N.S. ... 4
Town of Clace Bay. N.S. 3
East Kildonan Sch. D.,
Man, . .6
West Kildonan Sch. D.,
Man. . . .6
R. M. Assiniboia, Man. . 6
Full parliculars on request.
Orders niav be telegraphed or telephoned at our expense
W. A. MACKENZIE & CO.
Covernment and ,\tunicipal Bonds
42 King St. West
TORONTO -:- CANADA
1935
6.15
1941
At Market
1921-1928
6.50
1921-1927
6.50
1921-1929
6.50
1921
6.50
1923
6.50
1922-1931
7.25
1921-1928
7,25
1922-1940
7.25
liiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiffiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiii
'1' H E MONETARY TIMES
Volume 66.
still on the market, and it is hoped to make a better sale
in the next three months. The bids received were: —
Harris, Read and Co 92.50
Bond and Debenture Corporation 92.00
Clifton Cross Co., Regina 91.50
Saskatchewan.. — The following is a list of authorizations
granted by the Local Government Board from January 8, to
January 15, 1921:—
Schools. — Beaverside, $500 8 per cent. 5-years annuity;
Swan Bluff, $1,500 8 per cent. 10-years annuity; Mountain
Lake, $600 8 per cent. 4-years instalment.
Rural Telephones. — Redpath, $1,000 8 per cent. 15-years
annuity.
-Mberta. — New school debenture issues totalling $57,600
have been authorized by the board of public utility commis-
sioners. They represent eighteen separate issues in all parts
of the province, and the proceeds are to be used for local
educational purposes, in most cases the erection or improve-
ment of school buildings. The largest of the new issues
will be that of the Wrentham consolidated school district
south of Lethbridge, which will borrow $12,000 for a build-
ing, equipment and vans. Another loan of $5,500 by the
Zawale school district is among those newly authorized by
the utility board.
East Kildonan. Man. — Application has been made to the
provincial government by the municipal council for $105,000
for housing purposes, Hon. Edward Brown, provincial
treasurer, has announced. He also reaffirmed the govern-
ment's decision not to extend the housing act this year, and
intimated that the treasury has $500,000 worth of 1934 ma-
turity Victoi'y bonds, which the government is willing to
exchange with municipalities for municipal debentures.
Municipalities with housing problems can receive assistance
by such exchange, he said. ^
Montreal, Que. — At a recent meeting of the Civic Im-
provement League the housing question was discussed. It
was stated that the Dominion housing loan was a proven
failure, as far as the province of Quebec was concerned,
urban congestion still increasing at an alarming rate. It
was proposed that the provincial government enact a law at
the present session of the legislature to float a loan not to
exceed $20,000,000, and to re-loan the same through the
municipal councils or through a special commission, for the
purpose of assisting the building of houses for the people
on a more equitable basis. These loans, it was suggested,
should be made for a period not exceeding 31 years, at not
more than 5 per cent., repayable monthly, with a sinking
fund to retire the total loan. Provision was also made that
the maximum loan on any building should not exceed 75 per
cent., with a maximum for any house or tenement of $6,000.
Bond Sales
Saskatchewan. — The following is a list of sales reported
by the Local Government Board from January 8 to 15,
1921:—
Eight per cent. Schools. — Grainview, $6,000 15-years,
Weed Creek, $4,000 15-years, Roadside, $4,000 10-years, H.
J. Birkett and Co., Toronto; Husiatyn, $4,500 15-years,
Waterman- Waterbury; Buffalo Head, $775 5-years, A. Hislop,
."Areola; Eigenheim, $8,000 15-years, R. S. Fleury, Rosthern.
Eight per cent 15-years Rural Telephones. — Tipperary,
$1,600, Regina Public School Sinking Fund; Bulyea, $550,
Eddy, $200, A. Neale, Bulyea; Gregherd, $7,600, W. L. Mc-
Kinnon and Co.
Watford, Ont. — C. H. Burgess and Co. have purchased
$52,000 6 la per cent. 30-instalment debentures at a price
of 97.27. Tenders received were: —
C. H. Burgess and Co 97.27
W. A. Mackenzie and Co 97.14
Sault Ste. Marie, Ont. — Wood, Gundy and Co. have pur-
chased the following debentures at a price of 91.50: $6,500
6 per cent. 10-year; $20,000 5% per cent. 30-years; $25,000
6 per cent. ;?0-years; $134,500 6 per cent. 30-years: $10,000 6
per cent. 10-years. The money will be used for schools,
parks and other improvements. Tenders on the issue were
as follows: —
Wood, Gundy and Co 91.50
Dominion Securities Corporation 91.25
C. H. Burgess and Co 90.846
A. E. Ames and Co 89.122
Royal Securities Corporation 87.80
The rate of the highest tender was on about a 6.60 per
cent, basis.
Merritton, Ont..— The town has awarded $30,000 6 per
cent. 30-year debentures to Dynient, Anderson and Co. at a
price of 95.137, at which rate the town pays about 6.38 per
cent, for its money. Tenders received were as follows: —
Dyment, Anderson and Co 95.137
Harris, Forbes and Co 94.37
R. C. Matthews and Co 94.11
W. L. McKinnon and Co 93.93
C. H. Burgess and Co 93.91
A. E. Ames and Co 93.89
Wood, Gundy and Co 93.79
Bank of Nova Scotia 93.75
Canada Bond Corporation 92.25
- Brent, Noxon and Co 90.023
Housser, Wood and Co 89.85
In addition, the National City Co., Ltd., bid 94.70 for
a 20-year issue, while the United Financial Corp., Ltd., also
bid 94.36 for twenty-year bonds.
Brampton, Ont. — The following bids were received on
January 24 for the issue of $61,138.93 bonds, due as fol-
lows:—$3,668.88 6 per cent., due in 20 instalments; $1,5.56.33
6 per cent., due in 30 instalments; $24,879.16 6% per cent.,
due in 20 instalments; $31,034.56 6% per cent., due in 10 in-
stalments:— For entire issue — Canadian debentures Corpora-
tion, 100.18; A. E. Ames and Co., 98.79; C. H. Burgess and
Co., 98.52; Harris, Forbes and Co., 98.377; R. C. Matthews
and Co., 98.18; McKay and McKay, 98; United Financial
Corp., Ltd., 97.75; Brent, Noxon and Co., 97.53. For 6V2
per cent, bonds only — Dynient, Anderson and Co., 99.77; Do-
minion Securities Corp., 99.647; Wood, Gundy and Co., 98.79.
The bonds were awarded to the Canadian Debentures
Corporation.
Simcoe, Ont. — The town is calling for tenders up till
February 3, 1921, on $28,976 5V2 per cent. 30-instalment de-
bentures. The proceeds of the issue will be used for
sanitary sewers.
Saskatchewan. — There was keen competition for the
$2,000,000 6 per cent. 15-year bonds of the province, the
issue going to a syndicate of dealers comprising Dominion
Securities Corporation, the National City Co., Ltd., and
Harris, Forbes and Co., Inc., by a margin of only $140 over
the next highest bid. At the price secured, the province
pays about 6.23 per cent, for its money. Tenders were as
follows for bonds payable in Canada: —
Dominion Securities Corp., National City Co., Ltd.,
and Harris, Forbes and Co., Inc 97.637
Wood, Gundy and Co., and A. E. Ames and Co.. .97.63
MacNeill, Graham and Co 96.59
W. A. Mackenzie and Co., R. A. Daly and Co., and
Hanson Bros 96.53
A. Jarvis and Co 95.817
Three new directors have been elected to the board of the
Bank of Hamilton, namely, Robert S. .\mbiose, president of
the Tuckett Tobacco Company, Allan V. Young, president of
the Hamilton Cotton Company, and W. P. Riley, of Winni-
peg, president and general manager of Western Grocers,
Ltd., a director of the Monarch Life Insurance Company
and of the Equitable Trust Company, and vice-president of
the Dominion Loan Securities Company.
January 28, 1921
THE MONETARY TIMES
Government
Municipal Corporation
Bonds
Bought and Sold
Correspondence Invited
Eastern Securities Company, Limited
ST. JOHN, N.B. HALIFAX, N.S.
Western Municipal & School
Debentures 71%
TO YIELD • 2 /^
6%
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
INVITED
UNION TRUST BUILDING
WINNIPEG
J. F. STEWART & CO.
Members of the Toronto Stock Exchange
Take pleasure in announcing
the admission to partnership of
Duncan C. Reid and a change
in the firm name to
Stewart, McNair, Reid
& Company
It is the intention of this Corri-
pany to handle only high-grade
investments, and to specialize,
as in the past, in Government
and Municipal Bonds.
106 Bay Street
Toronto, January 24, 1921.
Maose Jaw, Saskatchewan
STOCKS AND BONDS
INSURANCE
FARM LANDS AND PROPERTY MANAGERS
KERN AGENCIES
LIMITED
Private Wires to WINNIPEG. CHICAGO. TORONTO.
MONTREAL AND NEW YORK
ACCOUNT BOOKS
Loose I>kaf Ledoers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
C.ible Address. Topcco Western L'n. and A.B C.Sth Edition
CALGARY, CANADA
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C. H MACAULAY J P. NICOLLS. Notary Public.
Investment Holders
Increase Your Income With Safety
We request you to send us. without obligation, a
list of your holdings.
We may be able to suggest a method of increasing
your income without decreasing your security.
Your Investment Business will he appreciated
Gillespie, Hart & Todd, Ltd.
Head Office
711 FORT STREET,
VICTORIA. B.C.
Branch
414 PENDER STREET.
VANCOUVER, B.C.
40 THEMONETARYTIMES
Corporation Securities Market
Another Week of Quietness and Easiness Experienced by Canadian Stock
Markets— Papers Afford the Most Interest— Investment Securities Still in
Demand— Standard Bank Stock Listed— Bank of Hamilton Declares Bonus
Volume 66.
4 NOTHER week of quietness and easiness was experienced
-^ by the Canadian stock markets, a.nd at the close on
January 26, prices appeared to have no definite trend. A
survey of the lists reveals a number of gains, but at the
same time net losses were numerous. It is not the lack of
funds that is now holding operations in check, but an absence
of desire on the part of traders to participate.
It is hard to define which section of the markets gave
the best account of itself, as they were all more or less irre-
gular. The strictly investment securities are still the fav-
orites, although some bank stocks were easier. Canada
Steamships and the steel issues were fractionally lower, while
Bwcelona and Brazilian dropped to slightly lower levels.
Papers afforded the most interest. It had been thought
that the statement of the minister of finance to the Pulp and
Pp.'per Association last week, that further taxation might be
expected by them, would have a depressing effect on the
stocks, but no such movement has yet made itself prominent.
The sharp advance in Riordon sh&res was an event whicii
caused the Street to stop and consider, in that it was oppo-
site to expectations. The position of the Riordon Co., how-
ever, is favorable, and as manufacturers of the best sulphite
pulp on the continent, the outlook of the company is of the
best. On the whole, the pulp and paper industry is far from
depressed, and the optimistic note sounded by the authorities
in the va.rious sections of the trade has brought about a much
better feeling.
Trading figures show that the turnover of listed stocks
in Montreal was 47,448, as compared with 48,572 in the pre-
vious week, while, the turnover of listed shares in Toronto
was 14,930, as against 14,575 previously. Bonds changed
hands on the Montreal exchange to the extent of $1,607,200,
compared witlj $1,449,290 last week, while the Toronto figures
were $1,830,700 and $1,801,500, respectively.
An issue of £1,000,000 Grand Trunk Railway 3-year 6
per cent, notes, matured in London, England, this week. The
announcement is made that these notes have been retired.
\n issue of £2,000,000 of Grand Trunk Pacific 7-year 5 per
cent, notes will fall due in London on March 2. This issue
is guaranteed by the Grand Trunk Railway. There is a good
deal of speculation in banking circles as to whether this issue
will be refunded or paid off upon maturity.
The Standard Bank of Canada has listed $500,000 addi-
tional of its stock on the Toronto exchange, this being the
new issue, which was made in December at $175 per share.
The authorized capital of the Standard Bank is $5,000,000,
and the amount subscribed and paid up at the present is
$3,500,000.
In addition to the regular quarterly dividend of .3 per
cent., the Bank of Hamilton has declared a bonus of one-half
of 1 per cent, for three months ending February 28,
1921, when the bank's fisc&l year ends. This makes a total
distribution of 13 per cent, for the financial year. The divi-
dend and the bonus on new stock will be computed at the
same rates, but in accordance with the terms of issue, and
both will be payable to shareholders of record at close of
business on February 15.
Capitalization Changes
The following companies, registered under provincial
charters in Ontario, have been authorized to increase their
capitalization. The shares to be issued in each case will have
a par value of $100:—
Former In-
Company. capital. creased to
Hobbs Mfg. Co., Ltd., London $ 50,000 $1,000,000
Wagsta.ffe, Ltd., Hamilton 40,000 1,000,000
Hinde and Daunch Paper Co., Ltd., of
Canada, Toronto 250,000 625,000
Pembroke Shook Mills, Ltd., Pembroke 100,000 ■ 500,000
Grand and Toy, Ltd., Toronto 50,000 500,000
Application has been made to tlie Public Utilities Com-
mission of New Brunswick by the Madawaska Light and
Power Co., Ltd., for permission to issue $250,000 bonds and
$.500,000 stock. The company owns practic&lly the only site
in Madawaska County, N.B., available for development, and
about $750,000 is to finance the undertaking. The commis-
sion has not yet stated its decision.
CANADIAN P.\CIFIC'S CONSTRUCTION POLICY
Bridge replacement, relaying of rails and improvements
to shops and tracks will constitute the early spring work of
the Canadian Pacific Railway, according to a statement issued
on January 20 in Winnipeg by D. C. Coleman on his return
from Montreal, but appropriations arranged by the head-
quarters staff at Monti-eal do not contemplate any large in-
vestment. Mr. Coleman's statement is as follows: —
"With commercial and financial conditions as they are
at present, the Canadian Pacific must proceed with caution
in the matter of incurring expenditures. The appropriations
for the year had to take into consideration necessity for
retrenchment to meet a comparatively light traffic movement.
The usual provision has been made for keeping the condition
of the property up to present standards, and a considerable
amount of bridge replacement, rail replacement and work of
that charatcer will be undertaken. In addition, there will be
certain improvements to terminal, shop and passing track
facilities to enable the grain crop of 1921 to be handled with
efficiency. Any large expenditures on capital account will,
however, be deferred until the business outlook clears up,
and no announcement as to what may be undertaken then
can be made at present."
UNLISTED SECURITIES
Quotations fu
lishe^ to The Monetary Time
(Week ended Ja
AbitibiGen..Mort.6'sC40)
A'ta Pjc. Oravn...com
" ... -pref.
Asiidown Hardware .5's.
British Amer. Assurance
Burns, P 1st Mtge. 6's..
Can. Machinery . . . com.
Canada MortBage
Can. Oil com.
■■ pfd.
Can. Westinghouse
Can. Woollens com.
pref
Cockshutt Plow 7% pref.
Coll ngwoodShipb'dg.b's
Crown Lite Insurance...
Cuban Can Sugar, com.
navies William fi's
Ask
89.50
Uominion Fire
Pom. lron& Steel 5'slH39
Oom. Power pfd.
DunlopTire pref.
6's.
Eastern Car 6's
Eastern Theatres., .com.
Famous Players. 8% pfd.
Coodyear Tire., pref....
Grd'n, 1 ronside & Fare6's
Harris Abattoir 6's
Home Bank
Imperial Oil..
King Edward Hotel.com.
..7's.
Loew's Ottiwa ....com.
Loew's Hamilton. . .com.
Man-'f-ict" » s Life
Bid
Ask
J5
61.50
70.50
84
89
88 50
9i
90
97
84
90
10
16.40
82
65
75
87
89.75
95
98
lO'i
109
115
70
7.1
78
9
11.50
niV
105
200
Marconi Wireless
Massey-HarriK
Mattagama Pulp. . -pref.
Mercantile Trust
Mexican Nor. Power. .S's
Morrow Screw 6's
Murray-Kay pfd.
National Life
North Star Oil com.
-pref.
Nova Scotia Steel 6% deb
Ont. Pulp .6's
Page Hersey.. pref.
RiorJon..coni.(newstk.)
.,pfd.
R. Simpson pfd.
Sterling Bank
StertineCmt com.
St. Lawrence Sugar 6 s..
Toronto Carpet com.
95
Toronto Paper 6's.
80
Toronto Power. S's (1924)
85
Trusts Guar
68
United Cigar Storescom.
.40
pref.
1.70
Western Assurance.
9.50
Western Can. Pulp.com.
17
Western Gi-ocers pfd.
60
WhalenPulp com
16
pref.
January 28, 1921
THE MONETARY TIMES
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Year
to yield
7 to 7% %
We Specially Recommend iheie Bonds at Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto BIdg. Royal Bank Chambers
EDMONTON CALGARY
The Bond House of British Columbia
WE ARE IN THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
Thi
le
tward
Trend
Upx
Notv^^ilhstanding
the seemingly alarm-
ing over-inSation ap-
parent in the present fin-
ances of the world, the
tendency seems to be all
toward a stabilization of
conditions generally.
Business readjustments ar^ mak-
ing substantial progress. Manu-
facturers are again turning attention
to production. Labor difficulties seem
nearer solution owing to decrease of
unemployment. Cheaper money is ad-
mitted to be in sight and once the channels
of commercial activities are properly open-
ed, the gradual return towards pre-war
normals will become more apparent.
These conditions undoubtedly have a direct
bearing on the Bond Market, and w^ill show^ in
rising prices for high grade securities. Unques-
tionably now is a favorable time to buy good bonds
and over a period present purchases should show
substantial increases in values.
Wriie for tatest Cocv? of our " Invatment Information."
Bond Department
The Cvnada Trust Co^nPANY
14 King Street E.
Toronto
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J.W. MAHAN
J. A. WBSTMA.V
Managing Dii
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches— SASKATOON AND CALOARY. i11-»»r E.V«
Canadian Managers
Investment Corporation op Canada. Ltd.
London Office: i Great Winchester St.. B.C.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
P. M. LIDDELL & COMPANY
Investment Bankers. Fiscal Agents
Insurance Brokers
826-7-8 ROGERS BUILDING, VANCOUVER, B.C.
LOUGHEED & TAYLOR, LIMITED
STOCKS. BONDS AND ESTATE AGENTS
We have special facilities and experience in procuring Store Site.-,
ami Warehouse Properly Locations for Chain Stores.
Our service covers all of Western Canada.
CALGARY .... ALBERTA
w
E have 450 good businesses for sale in the central
portion of Alberta. Everything from a General
Store to a small Confectionery
If you want a business in Alberta you want us.
WHYTE & CO., LIMITED
111 Pantagea Buildine
Edmonton. Alberta
((
The
Mone
tary T
imes"
will be sent vou tor four months
our TRIAL SUBSCRIPTION plan
on
$1
.oo
Juat send a
dollar bill ai
id your name
and address.
X
Vancouver District Property
Expert Estate Agents and Managers
Property Bought and Sold, Valued, Rented and
Reported on. Correspondence invited.
WAGHORN GWYNN Co., Ltd.
48
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
.«I<>.\TUI':AI,— n<'<-k IClKlrtl Jan. '.'Ulli.
'Figures supplied by Burnett & Co.)
Stocks
Abitibi P.*P
" pfd
Asbestos Corp
pfd
Ames-Holden
pfd
Atlantic Sugar
Bell Telephone
Br.l7.ilianT.L.& Power
B.C. Fish
Brompton Pulp & P...
Canada Cement
■■ • ...pfd.
Can. Con
Canadian Cottons
CanadianCar
■• ....pfd.
Canadian Gen. Elec...
Can. Steamship
• •• pfd.
Can. Loco pfd.
Carriage Fact
" ...pfd.
Con. Minuis* Sniel...j
Del Rys...
Dom. Canners
...pfd.
Dominion Bridge
Dom. Coal pfd.
Dom. Iron pfd.
Dominion Glass
■ ..pfd.
Dom. Steel Corp
■■ pfd.
Dominion Textile
■■ ...pfd.,
Howard S
Sales Open High 1 Low Close
Illinois Traction .
Dtd
pfd
Kaministiqua
Lalieof the Woods..
Laurentide
LyallCon-;
Macdonald Co.-
Mont. Cottons
■• pfd
Montreal Power
Tram Deb. .
aph.
Telegi
National Brewerie;
Ogilvie Flour Mills
' .pfd
Ont. Steel Prod
Ottawa
Penmans
pfd.
Price Bros
Quebec Ry. L. H.&P .
Riordan Pulp&P
" ..pfd.
St. Lawrence PI. Mills.
Sherwin Williams. pfd
Shawinigan W. & P ...
Spanish River
•• pfd.
Steel Co. of Canada...
' •■ pfd.
Toronto Ry
Tucketts
Tooke Bros
pfd,
Wabasso Cot'n
Wayagamack P. & P. .
Winnipeg Ry
Bniiks
Commerce
Hochelaga
Imperial
Merchants.
Molsons
Montreal
Nova Scotia
Nationale
Royal
Standard
Toronto
Union
Bonds
Asbestos Corp
Bell Telephone Co
Can. Cement
Can. Rubber
Cedars Rapids Mfg....
City Mont. Dec. 6's. 1922
" May6
■' Sept.S's. 1923
Dom. Can.W. Loan. 1925
1931
1937
Victory Bonds, 1924
1934
1922
1927
1937
1923
1933
481
98}
HUmTHKAIj-Coniinued.
Dom. Cottons .
Dom. Canners.
Dom. Coal
Dom. Iron
Dom. Steel.
Dom. Textile
Lake of Woods
.Mont. St. Ry
.Mont. Power
Ogilvie Flour
Penmans
Price Bros
Quebec Ry.L.H.&P.
Riordon
Sherwin-Williams. ..
Steel Co. of Canada..
Wabasso Cotton
Wayagamack P. & P. .
Winnipeg Elec
Sales Open High Low Close
10000 88i
500 1 92 J
26766 76
93}
TORONTO— Week Ended Jan. •i6lh.
.Stock.s
Atlantic Sugar
Abitibi
Ames-Holden pfd
Barcelona . . . . ,
Bell Telephone
Brazilian Traction. ..
Burt. F, N
■ pfd
B.C. Fish
Can. Bread
Canada Cement . -
nfd.
SIC 40i
2981 135
225 104
Canada Steamship .
pfd
City Dairy pfd
Coniagas
Con. Gas
Detroit United
Duluth
La Rose.
Loco
■■ pfd
Mackay Companies
■■ ...pfd
Maple Leaf pfd
Monarch pfd,
N.S. Car
N. S. Steel
Nipissing
P.1C. Burt pfd
Penmans pfd
Porto Rico
■■ pfd,
Prov. Paper
Quebec R.L.H. & P
Riordon
' pfd
Russell pfd.
Salesbook pfd
Sawyer-Masaey
•• ....pfd
Smelters
Spanish River
...pfd.
Stan. Chem pfd.
Steel Corp
Steel Company
....pfd.
Toronto Ry
Tucketts
pfd
Twin City
Winnipeg Elec
Baiik.s
Commerce
Dominion
Hamilton
Imperial
Merchants
.Montreal
Nova Scotia
Royal
Standard
Toronto
Union
Lonn and Trust
Col. Inv
Can. Perm
Ham. Prov
Lon. tS: Can
Union Trust
Bonds
Dom. Iron
Loco
Rio. Jan. T., L. & P.,..
Sao Paulo
7000
18.^00
13800
31500
Ugh
Low
3''?
30
5SJ
SKi
4.5*
42
4I»
4*
r/
104
.15 (
321
07
107
07
105
i 21
64*
93J
TOKOSiTO— ConttfiMed
War Loans
Sales
14700
Open
High
Low
Close
Dom. Can.W. Loan. 1925
93i
95*
934
93i
1931
15200
93|
94
93i
93|
1937
21500
974
9Si
973
98$
Victory Loan 1922 ....
3040.50
98
99i
98
98}
1923 ....
106750
97
99 ii
97
988
1927 ....
33000
98,1
98}
97A
98
1937 ....
146625
99
100}
99
993
1933 ....
547300
97|
983
97*
98
1934 ..
531080
95i
9S:i
95
95}
1924 ....
1S545O
9B}
96}
95i
96}
WlNSflPE«— Week ended Jan. 2Snd.
Victory Loan 1922..
" 1923..
" 1924..
" 1925..
" 1927..
■■ 1937..
" 1933..
" 1934.
War Loan 1931 . . . .
" 1937 . , . .
" 1925,...
Standard Trusts
North Star pfd.
Sales Open High I Low
36250
17900
13350
12250
9350
5900
121400
NEW VOICK— Week ended Jan. 2«nd.
Canadian Pacific
Canada Southern
Nova Scotia S. & Coal.
Granhy Consolidated , -
Bonds
Dom. of Can. 5% 1921
5i% 1921
5% 1926
5S% 1929
5% 1931
Sales Open Hi^ Low Close
1000
98000
25000
60000
38000
LO\»ON. Eug.— Week ended Jan. Lltli.
tiov'l. •!' Mun. Sales Open High Low Close
Alberta 44%
■■ 4% debs
Canada.. 3j% 193050..
" .... 4% 1940-60
" .... 4J% 1920-25
B.C. 4J%
Edmonton 5% bds.23-53
Nfld.4jihl935
• 3i% bds
" 4% cons. 1936.
Montreal 4i% Reg.
4% Reg. 48-50
Ontario 4% Reg
Quebec 4% bds. 1934.
Regina 5% debs
5% cons, Reg
Toronto 3J% c'ns. db. 29
4% debs. 1944-8
4j%1948. ...
Victoria 3i% 1921-6 . .
;■ 3J% 1929-49.
'] 4% cons
54% cons....
Winnipeg 4i% 1943-63
4% debs...
Uallways
Can. Nor. 4% deb. 1939
I' Ont. 4% deb.
" " Pac. 4% deb.
Calg'y»Edm.4%c. db.
Can. Pac
•• 4% deb.
'■ 4% pfd.
G.T.P. Br. 4% bd 1939.
G.T.P.3%bds
G.T. P. 4%1955
Gr. Trunk,... 4% guar.
Gr. TrunkS% 1st. pfd..
Gr.Trunk5%2ndpfd.
Gr. Trunk 4% 3rd pfd..
Gr. Trunk 4% cons
Ont. & Quebec 5% deb.
St, John* Que. 4% deb.
P. Gt. East.4*%deb.'42
Ind., Fin., Etc.
Can. Car 7% pfd
Can. Cement 6% bds...
Can. West Lumber 5%|
.Metropol. Elec. 3i% db.
I<aministiquiaP.5%bs.
Vanc'ver P 4i%gr. db.
Can. Gen. Elec
Shawinigan Water. . , .
Dom. Steel Corp
Can. Iron Foundries...
January 28, 1921
HE MONETARY TIMES
Debentures fok Sale
CITY OF PORTAGE LA PRAIRIE
DEBENTURES
$20,000.00, 20-year, 6% Waterworks Debentures.
134,000.00, 20-year, G'-i Electric Light Debentures.
In Denominations of $500.00, Coupon-bearing Bonds,
dated January 2nd, 1920, maturing January 2nd, 1940. Re-
tired by Sinking Funds at the end of the term. Interest
Coupons payable July 2nd and January 2nd at par, Montreal,
Toronto and Portage la Prairie.
Sealed Bids will be received by the City Treasurer up
to Five o'clock of Friday, February 11th, 1921.
W. R. GRIEVE,
363 _Secretary-Treasurer.
REGINA PUBLIC SCHOOL DEBENTURES FOR SALE
Tenders will be received by the undersigned up to noon
of February 1, 1921, for the purchase of Regina Public
School District debentures totalling Two Hundred and Fifty
Thousand Dollars ($2.50,000.00), repayable in thirty years
(30), with interest at six and one-half per cent. (6%'7c) per
annum, payable half-yearly at (1) Regina, Toronto, and
Montreal, or (2) Regina, Toronto, Montreal and New York,
at the option of the holder.
Tenderers are requested to submit bids for debentures
payable in Canada and New York, and for debentures pay-
able in Canada only.
Tenders will be considered on both the sinking fund
and annuity plans of repayment.
Regina funds and delivery.
No tender necessarily accepted.
For further information address
J. H. CUNNINGHAM, Secretary,
Regina Public School Board,
Regina, Sask.
Regina, Saskatchewan, January 6th, 1921. 353
Condensed Advertisements
" Positions Wanted." .ic per word : all other condensed advertisennents
5c. per word. Minimum charge for any condensed advertisement, 65c
per msertion. All condensed advertisements must conform to usual
style. Condensed advertisements, on account of the very low rates
chargi 0 for them, are pay "ble in advance ; 50 per cent, extra if charged.
A FAST-GROWING GENERAL AGENCY, with excel-
lent organization, requires additional representation in their
office for the Provinces of Alberta and Saskatchewan. Ex-
perienced underwriters of proven ability. We have three
inspectors in this field. An exceptional opportunity for the
company just entering this territory. Box 373, Monetary
Times, Toronto.
EXECUTIVE. — Age 35. Twenty years' experience.
Eight years in Railway Operating and Construction Depart-
ment, twelve years in Accounting Department, past five
years as -General Auditor. Expert Accountant, thorough
knowledge of railway and construction materials, well in-
formed in financial matters, seeks engagement. Box 381,
Movctarv Times, Toronto.
WANTED. — By young man with clean record, appren-
ticeship for secretary of a financial institution. .A.pply Box
383, Moiielory Times, Toronto.
■ ■■■■■■■■■■■■■■■■■■J
Ogilvie
Milling
The ninth in our
series of analytic
studies of Canadian
Industrial Companies
is devoted this month
to the Ogilvie Flour
Mills Company Lim-
ited.
This study discloses
facts of rather un-
usual significance.
Copies on application
Greenshields & Co,
Investment Bankers
14 King Street East, Toronto
Montreal Ottawa
■ ■■■■■■■■■■MllMlH^
THE MONETARY TIMES
Volume 66.
Corporation Finance
Montreal Power Company Made Satisfactory Showinj^ Despite Higher Operating Expenses —
IJrompton Company Outlines Position of Subsidiaries at Annual Meeting — Bell Telephone Hearing
Concluded and Judgment Reserved — Lower Gas Price Advocated by Toronto Civic Authorities
Cape IJreton Electric Company, Ltd. — Gross earnings of
the company for the twelve months ended November 30,- 1920,
were $637,586, an increase over the previous period of $57,-
717. Operating expenses, however, increased $90,471, so that
net earnings were $95,326, or $32,754 lower than the figure
for 1919.
Southern Canada Power Company, Ltd. — Notwithstand-
ing the slowing down of industrial activity, the gross earn-
ings for December show an increase of 18 per cent., and a
net of 30 per cent, over the same month of 1919; and for the
quarter the gross increase is 18 per cent, and the net increase
25 per cent, over the same period of 1919, thus showing a
steady growth in the demand for light and power. The
figures are as follows: —
Dec, 1920. 1919. Increase.
Gross $ 67,063 $ 57,184 $ 9,878
Operating expenses and
purchasing power 32,764 30,925 1,838
Net earnings $ 34,299 $ 26,259 $ 8,030
Three months ending December 31, 1920: —
Gross $193,758 $164,969 $28,788
Operating expenses and
purchasing power 100,413 89,765 10,648
Net earnings $ 93,345 $ 75,204 $18,140
Consumers' Gas Company. — Finance Commissioner Ross
and City Auditor Scott, of Toronto, have presented to the
council the final report of the independent audit of the Con-
sumers' Gas Company's books by Henry Barber. "We esti-
mate the average revenue per thousand feet of gas for the
company's financial year ending September 31, 1921, to be
$1.22.66 cents, and the average cost $1.20.46, leaving a sur-
plus of $2.14 per thousand," reads the report. "The total
estimated increases of expenses for the year is placed at
$957,377.48, or about 19 cents per thousand feet of gas. The
major increases, it is pointed out, are for coal and gas oil,
in which commodities it is reasonable to expect a decided
decline in price within the next few months, in which event
the manufacturing cost of gas will be lower than our esti-
mate, and the price should be reduced to the consumer ac-
cordingly."
Bell Telephone Company.^Argument in the rates case
before the Board of Railway Commissioners terminated on
January 25 at Ottawa. The hearing of the application for an
increase in rates, with which was to be coupled the inaugura-
tion of the measured service system, opened at Ottawa in
September last, and hearings were subsequently held at To-
ronto, Hamilton and Montreal. The application was opposed
by practically all the municipalities and boards of trade and
by the provincial governments. Telephone and public service
experts from both sides of the international border were called
as witnesses for and against the application, and the hear-
ings throughout have been participated in by nearly a score
of lawyers.
Hon. F. B. Carvell, chairman of the Board of Railway
Commissioners, did not take any part in the recent hearings,
the chair being taken by the assistant chief commissioner.
Dr. S. J. McLean, who had with him on the bench Commis-
sioners Nantel and Boyce. The commisisoners reserved judg-
ment at the close of the argument of Glyn Osier, K.C., of
counsel for the Bell Company.
Brompton Pulp and Paper Company, Ltd. — The annual
meeting of the company was held in Montreal last week,
when the annual report, which has already been published
in these columns, was submitted to shareholders. "The prin-
cipal event of the meeting was the outlining of the company's
United States subsidiaries' position at the request of one of
the shareholders. F. N. McCrea, president, answered the
question regarding dividends from American mills by ex-
plaining their position. Since the Clermont Company was
purchased on January 1, 1919, it has practically paid for
itself. The original cost was $1,184,000, on which Brompton
made the first payment of $300,000. The balance of the debt
has been paid by the mill itself, and only $175,000 remains
unpaid. As the company will earn more than that this year,
there is every reasonable assurance that Brompton will soon
be in receipt of dividends from that source. He stated that
the reason these American mills were first secured was be-
cause pulp enters the United States duty free, while kraft
and other paper bears 25 per cent. duty. With the American
plants Brompton has been shipping the pulp there duty free
and selling the paper all over the United States, these mills
being paid in, of course, American funds. In this connection
he stated that the first sulphate pulp, and on the continent,
was made at the Brompton plant at East Angus in 1907.
Mr. McCrea then dealt with the Groveton plant, which
was purchased on January 1, 1919, at a cost of $2,500,000.
The quick assets and quick liabilities were also taken over,
the former then being $1,395,003 and the latter $758,673,
leaving surplus quick assets of $636,329. Quick assets are
now $2,217,608 and quick liabilities and reserve for taxes
$1,043,275, leaving surplus quick assets of $1,174,333. Since
purchasing, new additions and improvements (all extensions)
have been $632,790, making the total value $3,670,794. They
now have total liabilities of: Bonds outstanding, .$1,250,000,
and balance payable on land, $400,000, a total of $1,650,000.
Against this may be set surplus current assets as already
mentioned of $1,174,333, or a net balance of debt of under
$500,000. This includes the bond issue, which has some
eighteen years to run before maturity. Inventories have been
taken at some $300,000 less than cost in getting at the figures.
Montreal Light, Heat and Power Company — Twenty
months has elapsed since the last report of the company was
published as a consequence of the change in the fiscal year
of the company enacted by the shareholders at their last
general meeting. For the purpose of simplicity and to permit
of future comparisons the directors have divided the lapsed
period into two parts, namely, eight and twelve months.
Surplus revenue resulting from the operations of the eight-
month period, after full provision for expenses and depre-
ciation, as well as fixed charges and dividends for the period,
has been transfen-ed to the surplus account, leaving only the
twelve-month period to deal with in detail.
The "i-esult of operations for the year ended December 31,
1920, shows gross revenue of $12,748,409 and net income of
$3,804,506, as compared with $10,939,272, and $3,605,181 for
the year ended April 30, 1919. Dividend payments show an
increase of $658,448 at $3,220,739, while the amount trans-
ferred to general surplus, subject to income tax, is shown
as $563,767, as compared with $1,022,890 in the 1918-19
period.
The balance sheet shows a much stronger position. Cur-
rent assets, including investments of $4,642,632, and cash,
.$'2,222,324, amount to $9,874,631, as against current liabilities
of $3,050,153. The following are some of the other principal
changes: —
1920. 1918-19.
Stocks, bonds and interests in
other corporations $63,495,650 $65,428,365
Advances to subsidiary companies 4,712,485 1,765,237
Capital stock " 64,475,500 64,126,100
Reserves, depreciation, etc 6,778,674 6,268,801
Surplus 3,243,652 2,608,204
January 28, 1921
THE MONETARY TIMES
Eighty-Ninth
Annual Report
THE BANK OF NOVA SCOTIA
Capital Paid-Up
Reserve Fund
$9,700,000
$18,000,000
PROFIT AND LOSS
Balance Dec 31st, 1919 t 7W.1T2 SS
Net profits for yeiir, losses by bad debts estimated and
provided for „ 2,327,122 44
*3,031,595 32
DUldends for year at 16'7t „ $1,552,000 00
Tax on circulation to December 31st.
Contribution to Officers' Pension Fund
Written off Bank Premises Account
Balance carried forward IKcenilu'r 31st, llijo
RESERVE FUND
Balance December 31st, 1919
Balance for^vard December 31st. 1920
97,000 00
100,000 00
300.000 00
982,593 32
il8.000.000 00
IIS.OOO.OOO 00
■1.1,002.785 77
21.126,075 25
3, 169,230 40
10,190,089 83
350.000 00
3.873,992 57
2,998.271 14
GENERAL STATEMENT
as at December 31st, 1920
LIABILITIES
ASSETS
Current Cuui ,
Dominion Notes .
Notes of other Banks
Clie(iues on other Banks
Balances due by other Banks In Canada
Balances due by Banks and Banking CorrisiniHU mk in
the United Kingdom
Balances due by Banks and Bankinc Correspondents
elsewhere than In Canada and the United Kingdom. .
t 55,010.445 26
Deposit In the Central- Gold Reserves 12.750.000 00
Dominion and Provincial Government securities, not ex-
ceeding market value 13,343.226 81
Canadian municipal securities and British, Foreign and
Colonial public securities other than Canadian, not
exceeding market value 20,232,222 20
Itailway and other bonds, debentures and stocks, not ex-
ceeding market value - 3.419,407 U
Demand loans In Canada secured by grain and other
staple commodities 15.183.998 73
("ail and demand loans elsevihere than in Canada 16.528.512 76
Balance of Profits, as per Profit and Loss
Account 982.595 32
Dividends declared and unpaid 390.834 34
Notes of the Bank In circulation J21.0Ol.637 58
Deposits not bearing interest . t39.26).03O 34
Deposits hearing Interest, in-
cluding Interest accrued to
date 145,480,914 92
184.745.845 26
Call and demand loans in Canada secured by bonds, de-
bentures and stocks
Depo
1205,750.482 84
Balances due to other Banks in Canada 1.317.462 85
Balances due to Banks and Banking Corre-
spondents in the United Kingdom 141.63174
Balances due to Banks and Banking Corre-
spondents elsewhere thai
and the United KIngdo
Bills Payable
Canada
$136,467,812 90
6.012,415 09
$142,480,227 99
with the Minister of Finance for the purposes of
circulation fund 492.822 75
Loans to goverumenLs and municipalities 2.445.219 06
Other current loans and discounts in Canada 1 1, ss r. I.iti
of Interest) - 73.103.489 00
Other current loans and discounts elsewhere than In
Canada (less rebate of interest) 13,942,283.10
Liabilities of customers under Letters of Credit, as per
contra - - 1,405,415 88
Overdue debts, eslinmted loss provided for 107,295 82
Bank Premises at not more than cost, less amounts
written oft - 5.202,069 08
Real Estate other than Bank Premises 133,908 23
Other assets not Included In the foregoing 391.652 37
$239,704,383 28
G. S. CAMPBELL Vlr.-Pi
11 A. KM HAKDSOX. (1.
AUDITORS' CERTIFICATE
We have examined the books and accounts of The Bank of Nova Scotia at Us Chief Office and have been furnished with certified returns
I rem the Branches, and we find that the above statement of l-iabililles and Assets as at December 31st, 1920, is In accordance therewith. The
Bank's investments and the securities and cash on hand at the Chief Office and at several of Uie principal Branches of the Bank were verified
by us as at the close of business December 31st. 1920. and In addition we visited the Chief Office and certain Branches during the year, when we
checked the cash at the Chief Office and verified the securities and found them to be In agreement with the books. We have obtained all infor-
mation and explanations required, and all transactions of the Bank which have come luider our notice have, in our opinion, been within the
powers of the Bank. And we certify that the above statement of Liabilities and Assets as at December 31st. 1920, Is properly drawn up so as
to exhibit a true and correct view of tlie state of the Bank's affairs according to the best of our information and th« explanations given to us,
and as shown by the books of the Bank.
A. B. BRODIE, C,A, I . ,,.
D. McK. MCCLELLAND. C.A. ' ■^"'"'""-
of the firm of Price. Waterhouse & Cn.
374
Toronto, Canada. 13th Januar
1921.
THE MONETARY TIMES
Volume 66,
RECENT FIRES
Empress Theatre at Prince Albert Destroyed with Loss of
$90,000 — Masonic Temple at Moose Jaw Suffered Loss
of $50.000— Large Fires in Weston, Ont., and
Winchester, Ont.
Fernie, B.C. — January 14 — Store building belonging to
Mr. Lasalle and a small stable belonging to U. Gales were
destroyed by fii-e.
(Jrappler Creek, Barclay Sound, B.C.— January 10 — A
fire destroyed the salmon cannery owned by Banfield Fish-
eries, Ltd., together' with 1(50 tons of salted herring.
Hamilton. Ont. — January 25 — The Royal Bank Building,
King Street West, was damaged by fire.
Joliette, Que. — January IT — .\ fire broke out in the
clothing factory of the Steinberg Clothing Co. Insurance as
follows: On clothing factory — Atlas, $7,500; British Colonial,
$10,000; British Empire, $2,500; Century, $7,500; Girard,
$5,000; Guardian, $15,000; North America, $7,500; National
of Hartford, $7,500; North British and Mercantile, $8,000;
Northern, $15,000; Noi-wich Union, $3,000; Royal Scottish,
$7,500; United States, $10,000; Yorkshire, $4,000; Tokio,
$5,000; others, $3,000. Total, $118,000. Loss about 75 per
cent. The insurance on retail store on the ground floor is
stated to be $70,000. Complete list not available. Loss a-bout
50 per cent.
Marmora, Ont. — January 25 — Mamiora's newest business
block was destroyed by fire.
Montreal. Que. — Januai-y 14 — A fire destroyed the W. R.
Cuthbert and Co.'s brass finishing plant, 41 Duke Sreet. In-
surance as follows: Lloyds' (England), $14,500; Stuyvesant,
$4,000; Northern, $5,000; Alliance of Philadelphia," $5,000;
Sun, $3,000; National of Hartford, $2,500; Norwich Union,
$2,500; Royal Scottish, $2,500; Union of Canton, $2,500; Mid-
west, $2,000; Firemen's Underwriters, $2,500; Century, $2,-
000; London Guarantee, $2,000; North Empire, $1,500; Queen,
$1,500; British Empire, $1,500; Employers, $1,500; North
America, $1,000; Firemen's Fund, $500; Providence- Wash-
ington. $500. Total, $60,000. Loss, total.
Montreal, Que. — January 23 — A fire broke out in the
kitchen of Oscar Lemire's home, 424 Cuvillier Street, doing
considerable damage.
Moose Jaw, Sask. — January 23 — The Masonic Temple
building on Main Street was completely gutted by fire. "The
total loss is estimated at $50,000.
New Liskeard, Ont. — January 26 — Fii-e originating near
the furnace in the basement did $10,000 damage to the build-
ing and contents owned by the Binkley Co., general store-
keepers.
Plattsville, Ont.— January 22— The Plattsville mill was
destroyed by fire. The loss is partly covered by insui'ance.
Port Stanley, Ont. — January 26 — The metal barn owned
by Frances Stanton was destroyed by fire.
Prince Albert, Sask. — January 20 — The Empress Theatre
was destroyed by Are with a loss estimated at $90,000, with
insurance of $45,000.
Quebec, Que. — In our issue of January 14th a fire was
mentioned as located in the city of Quebec, the college that
was destroyed by fire on December 15th last, with losses at
$500,000. This college is situated 75 miles from Quebec City,
at Ste. Anne de la Pocatiere village, on the south shore of
the St. Lawrence River.
Sydney, N.S. — January 21 — A store building owned by
Dan Gallivan, on Lingan Road, was damaged by fire. The
fire started from an overheated stove. The loss is partly
covered by insurance.
Sylvan Lake, Alta. — January 22. — Lake view boarding-
house was destroyed by fire when a gasoline lamp exploded.
The loss is estimated at $8,000, with insurance of $3,000.
Three Rivers, Que. — January 20 • — The two tenement
houses recently built by Henri Marchand at Cap de la Made-
leine were destroyed by fire. The loss is partly covered by
insurance.
Toronto, Ont. — January 20 — Fire broke out in the shoe
shine establishment in the basement of the Royal Bank
Building, doing damage to the extent of $1,000 to the build-
ing and $1,500 to contents.
January 24 — Residence of Mr. Swan, 2G0 Lee Avenue,
was damaged by fire. The loss is $800 to building and $600
to the contents.
January 26 — Sparks from a picking machine started a
fire in the Standard Mattress Company premises at 27-29
Davies Avenue. The loss is estimated at $6,000 to contents
and $800 to building. About $100 damage was done to the
home of Mrs. Willard, 44 Ann Street, by fire. The cause of
the blaze is unknown.
Tyron, P.E.I. — January 12 — A fire destroyed the work-
shop and garage of Thos. McNeill, togsther with contents,
including five automobiles. Loss, $12,000.
Vancouver, B.C. — January 18 — Residence of R. A. Mc-
intosh, of 2330 Alder Street, was damaged by fire. There
was no insurance.
Weston, Ont. — Factory of the Reliable Bedding Co. was
destroyed by fire. The loss is estimated at $30,000, of which
about a third was insured.
Winchester, Ont. — January 20 — A fire broke out in the
office of the Winchester "Press," and spreading rapidly to
the adjoining building which was occupied as the local office
of the Bell Telephone Co. The loss on the two destroyed
buildings was estimated at $12,000, half of which is covered
by insurance.
ADDITIONAL INFORMATION CONCERNING FIRES
Aylmer, Ont. — January 4 — Icehouse of the Carnation
Milk Products Co., Ltd., was damaged by fire. The loss is
$3,741, with insurance of $359,350.
Edmonton, Alta.— December 25— The building at 10236-40
Jasper Avenue, owned by the Banque d'Hochelaga, was in-
sured for $21,000 and the loss as adjusted is $10,925. The
"other building was insured for $20,000, but no damage re-
sulted to the building itself. The contents of the stores were
insured for $48,700, and the losses as adjusted amounted to
$28,452. The adjustments were made by the Lilly Adjust-
ment Agency, Edmonton.
Manitoba. — During the month of November there were
150 fires reported, with an estimated loss of $342,187. The
following is a list of the class of structure destroyed or dam-
aged: Dwellings 44, farm buildings 40, stores 8, warehouses 5,
apartment buildings 4, garages 3. Stoves and furnaces caused
24 fires, hot ashes caused 22 and matches caused 10.
Moncton. N.B. — December 15 — The "Times" Publishing
Building was damaged by fire. Insurance on damage to build-
ing, $4,200, and $9,500 on stock.
Regina, Sask. — December 23 — The shops of Alex. Young
Co., Ltd., marble and stone works, were damaged by fire.
Loss on building, $4,000; insurance, $2,500. Loss on ma-
chinery, $15,000; insurance, $4,500. Loss on stone and marble,
$6,000, no insurance. The fire was caused by an ovei'heated
stove. The riding school of the Royal Canadian Mounted
Police was destroyed by fire. The total loss was $30,000, with
no insurance. The cause of the fire is unknown.
St. Catharines, Ont. — December 19 — Three boathouses
were destroyed by fire. The house owned by T. Crowley
suffered a loss of $700, with insurance of $400. House owned
by T. O'Gorman was valued at $1,954, with insurance of $700.
Boathouse owned by Allan Grass valued at $1,200; insurance
of $500, with a loss of $146.
St. Hyacinthe, Que. — January 4 — Fire of unknown origin
caused a loss of $25,000, covered by insurance.
Toronto. — The fire losses for the year 1920 are estimated
at over one million dollars, an increase of losses of $529,944
over 1919. The total damage for the year 1920, according
to the fire department's statistics, was $1,260,906. During
the twelve months 2,496 alarms were responded to by the fire
sections. Chief Russell reports that the work of the double-
platoon system had proven successful, and that, starting on
New Year's Day, the firemen would be given one day off each
week. The motorization of the department has been con-
tinued, and during the year seven new combination trucks
were purchased. Five persons met their death as a result
of fire in the city of Toronto during the past year.
Hen. isHKD EvF.Rv Fkuiay
The Monetary Times
Printing Company
of Canada, Limited
"The Canadian Engineer"'
Trade Review and Insurance Chronicle
of (Tana^a
Established 1867
Old as Confederation
JAS. J. SALMOND
President and Genei'al Manager
A. E. JENNINGS
Assistant General Manag:er
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
Loans Accounts Show Heavy Contractions
December Bank Statement Shows Declines in Commercial and Municipal
Borrowings — Foreign Credits and Canadian Call Loans Increase— Overdue
Debts are Small in Volume— Savings Deposits Higher by One Million-
Cash Accounts are Lower but Liquid Position Shows Improvement
December,
1919.
Deposits on demand $ 703,329.292
Deposits after notice 1,138,086,691
Current loans in Canada 1.207,109,046
Current loans elsew here 168,9.")5,696
Loans to municipalities 42,63.5,290
Call loans in Canada 125,888,760
Call loans elsewhere 172,232,161
Circulation 247,611.079
November.
December,
Year's
Month's
1920.
1920.
inc. or dec.
inc. or dec
686.7.-.4.094
$ 657.496.742
- 6.5
- 4.2
1.292.009,008
1.293.007.488
+ 13.6
+ 0.08
1..357,973.118
1.301.804.342
+ 7.8
- 4.1
169,677,6.->7
184.540,423
+ 9.5
+ 8.9
6.1,487,171
55,973,926
+ 30.9
-15.4
108,471,340
114.703,246
- 8.8
+ 5.5
218.183,194
211,442,652
+ 22.7
- 3.2
253,576,.534
246,859,667
- 0.4
- 2.8
TWO of the most important conditions reflected in the De-
cember bank statement, are declining business and easy
money. To those who have studied the situation closely,
these fE'Cts are pretty well known, but the above comparisons
corroboiate any assertions which may have been of an ab-
stract nature.
The decline in current loans in Canada and demand de-
posits were within expectations, while the decrease in note cir-
culation was a seasonal event. December is known by bankers
as one of the redemption months for note circulation, because
of the leaetion from the demands for the crop movement.
Current loans have declined about 8.2 per cent, since the
peak was reached last September, but this account is still
7.8 per cent, above the 1919 figure, indicating that further
contraction is still in order. A factor which m&y be con-
sidered in relation to cuiTent loans is the comparative small-
ness of the overdue debts. Little significance has been at-
tached to this account, because it is said that there is no ex-
cuse for ordinary business paper to be overdue. Where there
are & great number of loans, however, and when business is
depressed, it is i-easonable that at least a small portion
should be overdue.
The course of the current and call loans in Canada during
the past thirteen months is given in the following figures: —
Current in Call in
Loans. Canada. Canada.
1919— December .?1,207,109,046 $125,888,760
1920-^anuary 1,226,962,963 132,015,334
February 1,257,015,902 127,251,919
March 1,322,267,030 128,233,310
April 1,317,238,2.30 125,644,859
May 1,349,079,981 119,114,493
June 1,365,151,083 115,272,587
July 1,377,276,853 115,360,894
August 1,385,470,153 113,598,923
September 1,417,520,756 114,669,611
October 1,405,401,227 113,135,902
November 1,357,973,118 108,471,340
December 1,301,804,342 114,703,246
The increase of about 5V4 per cent, in call loans in Can-
ada signifies the release of funds for speculation and pur-
poses other than those pertaining to general business. This
is one of the signs of easiness in money. Call loans abi'oad
declined during the month, but this is attributed not to the
inability of the banks to supply funds, but rather to the fall-
ing off in demand. Operations on the New York stock ex-
change were not very active in December, a^nd this was the
chief reason for the falling off in loans. The monthly move-
ment of call loans abroad since January, 1917, is illustrated
by the following figures: —
1917.
1918.
1919.
1920.
January . . . 155,747,476 132,687,066 140,819,656 170,206,805
February . . 162,344,556 160,239,494 155,983,681 184,469,882
March 161,616,735 167,296,701 160,116,443 205,202,133
April 159,156,054 179,818,531 155,533,666 206,229,451
May 168,692,675 172,259,879 157,176,325 213,964,182
June 159,.309,133 170,034,476 167,236,045 219,214,431
July 151,875,676 167,112,836 178,098,434 203,045,209
August . . . 176,610,625 160,544,990 174,176,578 193,888,245
September . 166,480,004 159,680,810 169,532,489 186,962,960
October . . . 151,018,747 157,040,858 158,194,085 188,367,459
November . . 139,832,552 171,035,732 169,626,880 218,183,194
December . . 134,483,482 150,248,322 172,232,161 211,442,652
The following table shows the course of principal loan
accounts during recent years: —
Current loans Current loans CaJl loans Call loans
Dec. in Canada. elsewhere. in Canada, elsewhere.
1915 ..$ 775,517,947 $ 58,479,739 $ 84,228,155 $137,1.57,869
1916 . . „ 820,378,557 76,396,720 82,569,983 173,878,134
1917 . . " 858,533,298 111,581,098 71,779,020 1.34,483,482
1918 .. 1,075,640,003 119,1.53,924 89,120,423 150,248,322
1919 . . 1,207,109,046 168,955,696 125,888,760 172,232,161
1920 . . 1,301,804,342 184,540,423 114,703,246 211,442,652
Savings Deposits Higher
Savings deposits were higher in December by slightly
less than $1,000,000. This increase seems small in com-
THE MONETARY TIMES
Volume 66.
Chartered Banks' Statement for December, 1920
LIABILITIES
NAME OF BANK
Bank of Montreal
Bank of Nova Scotia
Bank of Toronto
The Molsons Bank
Banque Nationale
6] Merchants Bank of Canada ...
Banque Provinciale du Canada
Union Bank of Canada
Canadian Bank of Commerce .
Royal Bank of Canada
Dominion Bank
Bank of Hamilton
Standard Bank of Canada
Banque d'Hochelaga
Imperial Bank of Canada
Home Bank of Canada
Sterling Bank of Canada
VVeyburn Security Bank
CAPITAL STOCK
Amount
of rest or
reserve
!.075,000
i.000.000
),000,000
i.OOU.OOU
i.OOO.OOO
i.000,000
i.OOO.OOO
i.OOO.OOO
i.OOO.OOO
i.OOO.OOO
J.OOO.OOO
i.OOO.OOO
i.OOO.OOO
),000.000
I.OOO.OOO
i.OOO.OOO
1.000,000
i.OOO.OOO
■22.000.000
9.700.000
S.000.000
4.000,000
2,000.000
10.169.100
3.000.000
8000,000
15,000.000
20.400.000
6.000,000
4.998.200
3.552.493
4,000.000
7.000.000
2.000.000
1.266.600
655.700
97.075.000 128.742.093 128,066,769
22.000,000
9.700.000
5.000,000
4.000.000
2.000.000
10,029.622
2.936.869
S.000.000
15,000.000
20,163.960
6.000.000
4.970,300
3,552.493
4,000,000
7,000.000
1.959.391
1.229.574
524.560
22.000,000
1 S.000.000
6.OO0.0O0
5.000.000
2.300 000
8.400.000
1.300.000
6,000.000
15.000.000
20.148.985
7.000.000
4,685.150
4.539.370
4,000.000
7.500.000
500.000
450.000
225,000
Notes
rculation
deducting
advances
for credits,
pay-lists.
Deposits by
the public.
payable
on demand
in Canada
39,839.768
21.004,637
7,884,328
6.131.293
6.397.280
15.733,252
3.133.268
11. 366,194
29,766.859
40.596.168
9.159.886
6.183,431
6.763.493
7,645.604
13 382.988
2,131.375
1 .208.273
430,490
«
17,975,131
1,915.640
161.146
4.297.279
8.051.393
1,547,492
2.321.765
1.444.620
31,975,004
19.794,225
7.916,872
7.066.876
5.425.275
1.526.154
913'.776
2,799.649
3.490.436
361,841
571,522
435,688
111,043
116,433
344 059
2.577.325
244,724
2.589,473
4,407,484
2.221,181
1,233.273
768,059
374.909
63.496
1,128.662
1,555,025
250,939
10,991
«
125,899.896
37,644,213
28.816.369
18,932.595
6.995,784
52.651.525
5.606.043
39.158.978
118.730.960
66,365,360
31,414,089
19,090.420
19.361.221
12.339,975
32.380,727
fi.245,403
4,692,082
1.171,102
»
,183,.547
210.500
,639.455
.196.612
,167.074
.638,095
,577,320
,933,480
,709,155
,874.448
,354,474
,202,047
,271,314
,9'-'5.!i79
.495,996
,373,284
,037.176
.217,932
Deposits
elsewher
than
in Canad
657,496.742 1,293.007.488 356,771,009
10,203,800
51.198,884
151.818,591
3.022.545
LIABILITIES-Continued
Loans
from other
banks in
Canada,
secured,
including
bills re-
discounted.
Deposits
made by
and balan-
ces due to
other banks
in Canada
Due to
banks and
banking
correspond-
ents in the
United
Kingdom
Due to
banks and
banking
correspond-
ents else-
where than
in Canada
or the U.K.
Bills
payable
Accept-
under
letters of
credit
Liabilities
not
included
under
foregoing
heads
Balances
due to the
Imperial
Govern-
Total
Liabilities
Aggregate
amount of
loans to
directors.
and 6rms
of which
they are
partners
Average
amount of
current
gold and
subsidiary
coin held
during
the month
Average
amount of
D( minion
Notes held
during the
the month
Greatest
amount of
circulation
at any time
during the
month
1
•
2.070,868
1.317,462
311.982
476.263
43.894
141,631
69.320
19,363
S
1. 485.486
1.606,231
1.446,833
376,775
19.763
549.419
7.615
2.544.0S7
6.162,884
11. .56 1,302
876,503
393,238
S
2,354,209
409,728
t
6.455. 117
1.405.415
203,978
353,122
3,680
1,560,642
1,539,926
390.834
4,793
459,881
9
504.200.363
211.021,787
86,649,251
79.359.620
66.165.052
172,037,715
37,029,767
142.353.811
432,422,080
531,52,5,777
125,352,953
77,5.19,723
82,738,010
65,165,075
113.834,398
25,592,849
22.060,713
3,259,6113
S
904.474
1.186.620
376.719
270,587
335.620
934,485
$ , S
25,475,318 ' 30,985,613
11.692,491 17,557,253
999,736 1 9.832,405
589,013 \ 3,890,986
377,910 2,265.950
3.962.347 6.049,871
123,879 ] 227,469
1,009,523 10,811,921
42,563.881
22.6.53.825
9.0.55,300
6,482.718
6.397.280
17.490.162
?
.s
4
'500,666
212,163
5
f
3.973,146
1,779
535,013
202,914
24,843
806,717
200,799
1,273.828
1,142
1,984.653
25,984
362.689
71.283
2.988
137,250
7
8
1.101,598
430.481
1.483.003
37.613
46,065
396.293
1,208.080
5,270,168
67,104
3,423,147
10,606.841
16.379.627
1.823,472
588,785
631,018
101.491
199.639
1,743,728
1.113,859
741.186
358.035
728,797
449,365
320.700
110,732
12,239i689
9
22.529
136,855
640,401
10
II
14,025.080
2.075 000
886,484
1 .735,370
466,424
1.696.355
23,214,463
11.902.000
3.089.169
5,045,249
3,439.156
9,117.894
1,569,708
779.008
165,445
43.499.146
9,961,954
IV
l»
393,326
14
53.779 507.852
|G
16
462,125
1
3.796
37,998
17
15.320
319.385 1 134.973
12,060 1 16,976
1,266,103
If
29,245
29.218,339
13,570,082
3.900.624
10,414,778
43.751,294
3.430,668
; 2,778,308,547 | 10,359.428 86.585.929
176,178,560
246,859,667
parison with previous figures, but that there should be an
advance at all, in times such' as these, is satisfactory, to say
the least. The trend of notice and demand deposits in Can-
ada during the past thirteen months is shown in the follow-
ing table: —
Deposits payable Deposits payable
on demand. after notice.
1919— December . . . .$703,.329,292 $1,1.38,086,691
1920— January 621,408,024 1,163,297,037
February 620,069,555 1,187,027,307
March 657,412,028 1,197,719,570
April 6.52,918,760 1,209,573,990
May 645,957,229 1,229,073,515
June 659,622,583 1,243,700,977
July 6.39,415,025 1,2.53,170,443
August 640,361,707 1,261,647,732
September 677,286,905 1,270,194,097
October 687,651,781 1,271,275,751
November 686,754,094 1,292,009,008
December 657,496,742 1,293,007,488
The course of deposits account during the past six years
is shown in the following table: —
Dec. On demand. After notice. TotaJ.
1915 .$423,690,384 $ 720,990,267 .$1,144,680,651
1916 4.58,208,417 845,006,717 1,303,215,134
1917 .569,441,871 995,978,013 1,565,419,884
1918 711,0.34,060 958,473,557 1,669,507,617
1919 703,329,292 1,138,086,691 1,841,415,983
1920 657,496,742 1,293,007,488 1,950,504,230
Deposits abroad increased by about $5,000,000 during
the month, but the Dominion government reduced its credit
balance by more than $17,000,000. The amount due provin-
cial governments was slightly increased.
Liquid Position Improved
Notwithstanding a substantial reduction in the cash
assets of the bp^nks, their liquid position, as a whole, was
improved. The ratio of quick assets to liabilities to the pub-
lic was 24.87 per cent., as compared with 24.34 per cent, in
November. The ratio of liquid assets, including call loans
Febi-uary 4, 1921
THE MONETARY TIMES
Chartered Banks' Statement for December, 1920
ASSETS
NAME OF BANK
Dominion Notes
i3 3 o
m
ii»-5
Notes
Is a
^ c "
5"
of
banks
E'£<^
Qo
o
Bank of Montreal
Bank of Nova Scotia
Bank of Toronto
The Molsons Bank
Banque Nat-onale
Merch;tnts Bank of Canada .-
Banque Provinciate du Canada
Union Bank of Canada
Canadian Bank of Commerce
Royal Bank of Canada
Dominion Bank
Bank of Hamilton
Standard Bank of Canada. . .
Banque d'Hochelaga
Imperial Bank of Canada ....
Home Bank of Canada
Sterline Bank of Canada
Weyburn Security Bank
23.809.401, 1.725..S69 2S,53J.H71
8.801.3891 4,201,396:13.002.785
I.0I0..')I6 I l,0IO..il6
573.946' ,i73.946
373,.';83 .i39i 374.122
4.074.769 3.506; 4.078,276
139.b46 139.646
9%.399 665.I2S 1 6Bl..i2S
9.486,»s;t 5,399.170 14,886.154
6.033.:«9 8.109,008 14.142.398
2.091. 225| 1.251 2.092.477
91.5.7681 : 915.768
1.752.828 ..
482.944 ..
1,701,359 ..
182.288 ..
13,S.044 ..
17.5121 ..
1.752.828
482.944
1,701.3.59
182,288'
138.044!
17,512
62.581.989 20.105,564 82,687.559 )77.469,242
9
<
»
34.325.622
6,704
34,332,327
21.119.067
7,007
21.126,075
10.594,132
10,594,132
3,3a5,2?a
3.;«)5.288
2.460,666
2,460,6(:6
5,129.538
5,129,538
262,807
262,807
8.673,510
8,673.510
23,692,946
4.%7
23.697.914
22,989.574
!,357
22.990.931
18,052.78;)
18.a52.783
3.799.917
3.799.917
6.271,375
6.271.375
3,007,805
3.007,805
10.224,508
10.224,508
2,397,285
2„397,285
996.860
996.860
165,5.59
165.559
177.469,242
20.035
177.489.280
11.038.166,
492.822'
2,54,834
235,000 1
100.000
' 450.000
114.315j
365,000l
, 908,245,
860.000
309„S75
j 225.000
I 175.00(1
, 200.000
378,83(1
' 108.000
65.C00
22,196
« 1
20.200,000
12.750.00C
4,0011,000
2.. 500. 000
4.500,000
7,000,000
4„500,00n
1S„50C.OO(:
22 500 000 ;
4.000,000
1., 500.000
3.400.000
3.8OO.0O0
7.O02..533i
■200.000;
1
1.154 27.732.262
)2;iOi 10. 190.089
t..560| 5,402.176
1,443 5,635.474
(,965 2.852.870
1,401 9,9.59,681
■ Hi ■/^i^'llll
' S„| n ,-< S-,1
- - -'.'• =.12
7S9!5yU| 4^02.624
485,653 5.061.597
1.238.411 3..5BS.032
1.287.250 7.863.706
360.813 1.497.0181
194.094! 943.560!
19,1061 35.695;
Depsits
Due
made
from
with
banks
andbal.
and
due
banking
from
corres-
oth^er
pond'ts
banks
in the
United
Canada
KinK.
banking
corres-
else-
where
than in
Canaoa
and U.K
l.lu
ASSKTS— Conti nued
Oomin'n
i§s=
Oovern.
•"•Ss 5
Railway
ment
and
and
Pro-
ipa
rit.,
1 pu
rth
other
bonds.
vincial
.a a. 5^
deben-
Oovern-
1-3 g"
tures
ment
E = o«
and
securi-
stocks
ties
S S C 3
Call and
short
loans in
Canada
on st'cks
debent-
ures and
bonds
(not ex-
ceeding
30days>
Call and
short
loans
Canada
(not ex-
ceeding
30 days)
other
current
*«
loans
and
og
disco'nts
ou
else-
where
than
le S
Bank
Liabili-
Mort-
premises
ties of
Other
assets
estate
gages
not
Pro-
Over-
other
on real
than
under
included
due
than
estate
letters
under
Govern-
and
debts
bank
of
the fore-
pre-
by the
(if any)
credit
going
districts
written
off
as per
contra
heads
9 9
I4,782.930'34.727.155
:i3.343,2'!K20.ai2.JJ2
2,691,63,! .1 IISI S17
8,790,636 J I, (WS.234
I 12,281.246;21.0rt6,S,l5
I 12,97n,9l'v< il.l37,S:!3 I
6.051,370 II,, 297.816
1.696,929 1,481,663
9,226,57t)| 3,017.138
277.962 253,464!
120,489681 191172317 411.494,937 114703246 211.442.652 1.301.804,342 184540423
12,540.917 55,973,926 6.636.i72|4,323,027 2.663.821 60.il7fi.915 43.751,294 3,664,275 3.056,979,489
Of the deposit in Central Gold Reserves SI 1,502,533 is in gold coin: the balance is in Dominion Notes.
J. C. SAUNDERS. Deputy Minister of Finance.
and securities, to liabilities to the public was 49.40 per cent.,
compared with 48.80 per cent, in the previous month. These
facts further emphasize the easiness of money, £<s it is con-
sidered good banking if quick assets are but .35 per cent, of
the total liabilities to the public.
The reduction in cash assets during the month is shown
in the following figures: —
Gold and sub-coin in Canada - $ 1,401,447
Gold and sub-coin elsewhere — 2,632,019
Tot?.l change - $ 4,03.3,466
Dominion notes in Canada — 13,149,975
Dominion notes elsewhere — 1,625
Total change - $13,151,600
The only other principal ch&nges were in current loans
abroad and municipal advances. The former account was in-
creased by about §15,000,000, thus disposing of. some of the
idle funds which the banks could not place in Canada. On the
other hand, municipalities reduced their obligations by nearly
$10,000,000, but still outstanding loans are nearly 31 per
cent, in excess of the figure as at December, 1919.
Capital and Reserves
Slight additions were made to the subscribed and paid-up
capitE'l and reserve last month as follows: —
Capital Capital
Bank. subscribed, paid up. Reserve.
Standard §52,493 $ 52,493 $ 39,370
Merchants 43,490
Provinciale 2,730 200,000
Royal 29,950 14,975
Hamilton 23,940 11,970
Home 105
Total additions $52,493 Sl.^,:;.1.->s $266,315
THE MONETARY TIMES
Volume 66.
BANKRUPTCY ACT STILL IN PROCESS
Question May be Again Gone Into Fully — The Insurance
Amendment — Estimating Canada's Bill Against Germany
(Special to The Monetary Times.)
Ottawa, February 3, 1921.
4N effort is being made by Mr. Thomas Mulvey, Under-
*^ Secretary of State, to get provincial officials together
in a conference so as to get a. symposium of their views with
regard to bankruptcy legislation. Since the present federal
bankruptcy act came into force on July 1 last, there have
been complaints from some of the provincial governments
that it overrides a good deal of provincial legisla^tion.
There is a mistaken idea abroad that under the present
law, bankruptcy* proceedings must be taken under the federal
law, but initial proceedings may be taken under provincial
law, and unless one of the creditors invokes the bankruptcy
act passed in the federal parliament in 1919, any bankrupt
business might be wound up without recourse to the federal
machinery at all. However, once a. creditor, any creditor,
invokes the Dominion law, there is no doubt that the Dominion
statute rides across provincial enactments here and there.
Present Act Was Fully Discussed
On the Dominion side it is argued that the act was
printed and circulated for a year before it was put into force,
and that no complaints came from the pi-ovinces. It is de-
sired to have a conference at which the matter can be fully
threshed out, and amendments devised to meet the situa-
tion, as in a matter of such importance to the whole credit
structure of the country, it is thought inadvisable to have
important amendments coming before parliament at every
session. The business world would not be just sure where it
stood if the law were constantly changing. It is realized that
the matter is & very complex one, however, and that for a
long terms of years there will have to be yearly attention
to details of procedure whenever matters are found to be
working less smoothly than they might. If possible, the
conference of federal and provincial officials will be held
early in the present session of parliament, so that amend-
ments may be introduced at the present session, if found
desirable. If it cannot be arranged the important modifica-
tions of the bankruptcy act desired by some of the provinces
could not be made before the 1922 session.
In Tlie Monetary Times of Friday last a full descrip-
tion is given of the proposed new bill to be introduced at the
coming session of parliament for the purpose of giving in-
surance companies powers possessed in Great Britain and in
the United States to go into different forms of insurance
under certain regulations. That bill is not yet in its final
shape, slthough the outline draft, submitted by the superin-
tendent of insurance to the Life Officers' Association for
consideration, contains all the essential features. The final
draft will not be available until after the session begins.
Canada's Reparation Bill
Cables are passing daily between officials of the Repara-
tion Commission in London and Dominion government officials,
whose duty it is to make out Canada's bill for reparation to
be included in the British empire's quota, of the 226,000,000,-
000 gold marks demanded from Germany by the Allies. Full
details of Canada's expenses other than that of keeping a
hostile force in France have gone forward, and accountants
overseas a.re busy at work trying to see what Canada's ex-
penses would have been if pensions and separation allowances
had been on the French scale which is accepted in the Peace
Treaty as the basis for reparation. The pension payments
of C&nada when reduced to the French scale will be capi-
talized. The total bill as Canada sends it forward, based
on what is allowed in the Peace Treaty, amounts to between
six and eight hundred million dollars. All the items are
being closely checked and questioned overseas, including the
amount for the Halifax disaster, and the ultimate amount
of the bill may be much smaller. When this process is finished
for the empire, percentages will be struck. The entire pro-
portion of the British indemnity has been fixed, it is stated
by officials in close touch with what is going on overseas,
at 22 per cent, of the total reparation sum. That would be
49,720,000,000 gold marks. Canadians have stuck out for
5 per cent, of the whole British empire quota, which would
be $497,200,000, allowing five gold marks to the dollar.
Therefore, a shrinkage to this point is certain, and if the
view of some officials overseas hold, the total received by
Canada would be less than one hundred million dollars. The
British empire total reparation bill is larger than can be
collected under the indemnity arrangement submitted to
Germany.
REACTIONS IN BUSINESS COMMENTED UPON
Financial Concerns Look Towards Future, However — Winni-
peg Offering More Bonds
(Staff Correspondence.)
Winnipeg, February 3, 1921.
EXCELLENT winter weather prevails in Winnipeg, and
business in many lines is reported to' be improving.
This is the season of the year for conventions, a.nd a great
many farmers and out-of-town people are in the city. At
the various annual meetings of financial and insurance con-
cerns, a very good feeling is expressed in the comments of
various officers, and while things are still quiet throughout
the west, the outlook for the spring is quite encouraging.
Hemp-Growing Concern Started
E. F. Hutchings, president of the Great West Saddlery
Co., has been appointed president of the Canada Fibre Pro-
ducts Co., which will go extensively into the hemp industry
during the present year. This company has been organized
principally through the efforts of Col. William Grassie, who
is vice-president. The land in Manitoba is quite suitable for
the growing of hemp, and the company will seed 1,000 acres
of land in the northern part of the province during the pre-
sent season. It is stated that the growing of hemp will
solve several important problems connected with agriculture
in Manitoba, and that, in addition to the beneficial results
which have been indicated, there will be by-products of al-
most equal commercial value. Among the agricultural ad-
vantages claimed for hemp growing is the prevention of soil
drifting, the enrichment of the land, and the destruction of
noxious weeds.
W. D. Campbell, former bank manager, and in recent
years connected with the credit department of Marshall
Wells and Co., has been appointed manager of the estates
department of the Traders' Trust Co., whose head office is
in Winnipeg.
Local Financing
The city of Winnipeg are olTering this week $750,000 6
per cent. 20-year debentures, and are giving the buyer the
option of an additional $500,000 at the same price. These
bonds are payable in Canada only. Local predictions are that
the price would be around 97.25.
The opening of the provincial legislature of Manitoba
is set for February 10. This session is likely to be a very
important one, as a great change has taken place since the
last legislature. A large number of labor and farmer repre-
sentatives have been elected and the combined strength of
these outnumber the government supporters.
The local wheat market took a decided advance to-day.
the closing prices being as follows: May wheat, 1.69; July.
1.60%; May oats, 48%; July, 48%. Elevator companies re-
port very litttle farmers' wheat has been sold on the recent
decline in prices.
The Victoria, B.C., Board of Trade has abandoned the
old name, and will now be known as the Chamber of Com-
merce. J. H. Beatty is pi'esident.
February 4, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
of Canada
Address: Corner Church and Court Streets, Toronto, Ontario, Canada.
Telephone: Main 7404, Branch Exchange connecting all departments.
Cable Address: "Montiraes, Toronto."
Winnipeg Office: 1206 McArthur Building. Telephone Main 3409.
G. W. Goodatl. Western Manager.
ne Year
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The Monetary Times was established in 1867, the year of Confedera-
tion. It absorbed in 1869 The Intercolonial Journal of Commerce, of
Montreal : in 1870 The Trade Review, of Montreal : an<f the Toronto
Journal of Commerce.
The Monetary Times does not necessarily endorse the statements and
opinions of iU correspondents, nor does it hold itself responsible therefor.
The Monetar>' Times invites information from its readers to aid in ex-
cluding from its columns iFrauduIent and objectionable advertisements. All
information will be treated confidentially.
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When changing your mailing instructions, be sure to state fully both
your old and your new address.
All mailed papers are sent direct to Friday evening trains. Any sub-
scriber who receives his paper late will confer a favor by complaining to
the circulation department.
PRINCIPAL CONTENTS
Editorial : page
Depositaries for Public Savings 9
Canada and the Reparation Terms 9
A National Disappointment I'O
Special Articles:
Deposit Limitation of Loan and Trust Companies . . 14
Boards of Trade Review Year's Work 18
Local Financing Proved a Disappointment 22
Price of Silver Fell Rapidly in 1920 32
Nearly a Million Surplus for Quebec Province .... 38
Newr Brunswick Has Current Deficit 40
. Concurrent Use of Trade Marks 42
Monthly Departments:
December Bank Statement 5
Trade of Canada by Countries 24
Montreal and Quebec Savings Institutions 24
Weekly Departments:
News of Industrial Development in Canada 44
News of Municipal Finance 48
Government and Municipal Bond Market 50
Corporation Securities Market 54
The Stock Markets 56
Corporation Finance 57
Recent Fires 60
DEPOSITARIES FOR PUBLIC SAVINGS
USUALLY unconcerned as to the solvency of financial
institutions, the public i.s at times eager to act when
signs of weakness are shown. It is for this reason that
sound finance requires depositaries of public savings to be at
all times prepared to meet demands upon it. In Canada the
maintenance of an adequate reserve of quick assets has been
largely left to the financial institutions, following the practice
in the United Kingdom, while the L'nited States, always
more ready to express its principles in statutory form, has
passed legislative enactments to a similar purpose. In
Canada our public depositaries are the banks which are
exclusively under the control of the federal government, and
loan and trust companies, which may be incorporated either
under provincial or Dominion authority. The proportion of
quick assets to deposits is a matter which is left entirely to
the banks. In the case of the loan and trust companies,
however, theie are strict limitations as to the amount of
deposits which may be received, and there is now a move-
ment on foot to enlarge their deposit receiving powers so
that a larger amount of funds may be available for invest-
ment.
. The banks, however, limit the use of most of their funds
to the purchase of commercial paper, etc., maturing in a few
months. Their entire capital is therefore turned over very
quickly, so that while some cash must be kept on hand to
meet day to day demands from depositors and note-holders,
and even extraordinary demands in time of stress, the con-
tinual flow of maturing paper ensures ability to meet a pro-
longed demand for liquidation of these obligations. The
position of a loan and trust company which invests chiefly
in bonds and mortgages is different, for here the turnover
of capital is relatively much slower. The practice pursued
thus far of financing mortgage loans, which mature in a few
years, by the issue of debentures of a similar term is sound,
and should be adhered to in the main. The conditions which
have recently restricted the operations of loan and trust
companies are temporary and should not be reflected in legis-
lation of a permanent character. While the exact ratio of
cash to demand obligations must be determined by each com-
pany separately, legislation which presumed to fix a margin
of safety which might prove too narrow would be a blot in
the financial record of the Dominion or of the province con-
cerned.
( A.NADA AND THE REPARATION TERMS
THERE is a possibility of Canada receiving a small por-
tion of the idemnity which the allies are now trying to
force upon Germany. As our interest in the war was not
financial, however, the delay is not causing any concern.
Great Britain is supposed to get 22 per cent, of the total re-
paration. Out of that percentage, Canada will have a share
estimated from 5 to 7 per cent. When she will get it, and
how much it will amount to in real cash cannot be said. In
any event the Dominion government, eventually, does not re-
gard the German indemnity in the light of a very liquid
asset.
The allied decision to demand that Germany pay 226
billion marks in gold in 42 years has apparently satisfied all
parties, including France, although the German side has
yet to be heard. The decision is based, presumably, on what
the experts consider Germany will be able to pay. The an-
nouncement may have the effect of causing Germany to
undergo a rigid course of deflation and economy, provided the
government is strong enough to impose such a regime. On
the other hand the terms may cause a strengthening of the
reactionary elements within the country. The situation in
Germany just now is obviously critical. She is in a position
where the imposition of a great new load or of a definite load
may prove the last straw that will break her back. A vital
essential to her welfare and recovery is internal peace. Will
the demand of the Allies cause internal disturbances and an
outcry against the orderly processes of government, or will
they have the effect of sobering the German people and fore-
THE MONETARY TIMES
Volume 66.
ing on them a realization of their position and the means
that must he taken if their country is not to suffer collapse
and the trials and humiliation that ro with such a national
calamity?
CANADA has faik'd to realize the hopes of the fathers of
confederation, maintains a Victoria correspondent of
The Monetary Times. "There must be something- wrong with
the present system of confederation when we look at present
circumstances," he says. "Confederation is sixty years old.
We have the best and richest part of the North American
continent; we have a paltry eight millions of men, women,
children and imbeciles; we have heavy, cumbersome systems
of government, federal, provincial and municipal; we are
head over ears in debt; our few manufacturers are coddled
and wet nursed to suffocation, so much so that most of the
energy is sapped out of them, and when the chilliness of a
little breeze of competition blows, they button up their fur
coats and run off to Ottawa to get more protection from
Mother against the bad boy who threatens to win their
marbles in a straight game. The general run of the public
take the cue, until the farmer wants government assistance
to build a path to his chicken coop, and the fellow who starts
a peanut stand in the city poses as a promoter of industry
and asks for some concession from the municipality. And so
on along the line. We have spent untold millions in immigra-
tion, and haven't retained one-tenth of it among us. Our
youth has to go elsewhere for a living instead of growing up
with the country. The labor element, the most soulless of
the war profiteers, are also pap-fed to the point of gluttony
by protective legislation. The average person asks what is
the reason? The answer is: (1) The manufacturers and
bankers can finance the politicians; (2) labor is an organized
vote and is purchasable.
"We nearly bust our vocal chords singing 'God Save the
King,' and at the same time send a customs officer to search
his valise if he should visit us — in other words we bellow
ourselves hoarse about our Grand Old Mother Country, and
slap her in the face with a high tariff wall at the same time,
so as to protect our infant industries, industries which have
been in their infancy from 1867, and are still in the suck-
ing stage."
Our correspondent believes that Vancouver Island could
do better if free from the Dominion, setting up a free-trade
colony which might becom.e a manufacturing! centre for
Canada. It appears to be difficult, however, for England,
with its free trade heritage of nearly a century, to maintain
the principle. One of the first moves of every self-governing
British colony seems to be to surround itself with a protec-
tive tariff, and it is difficulty to see how Vancouver Island,
if it could ever adopt such a policy, could stick to it. In
any case sentiment in Canada does not at the present time
lend a ready ear to sectional movements, and Vancouver
Island's influence can be more usefully applied towards a
moderation of the prespnt national tariff than towards
separation from it.
THE IRREDUCIBLE HOURS OF LABOR
ANEW YORK clerk asked for a raise.
Gradgrind replied: "Why do you want a raise? There
are 365 days in a year; you work 8 hours a day, and that is
122 days. There are 52 Sundays in a year; you get them off.
That leaves you 70 days. There are 14 holidays and two
Jewish holidays, which you get, which leaves you 54 days.
You take one hour off for lunch, which leaves you 40 days.
You get Saturday afternoons off, which makes 26 days,
wh'ch leaves vou 14 days, and I give you two weeks' vacation
each' year. When do you work, anyway!"
A Canadian business man has encountered the same
problem for he finds that the preparation of government
statements has so eaten into the time previously devoted to
private telephone conversation and book agents that there
is absolutely no opportunity to gossip in the office. The
situation has been found unbearable to the clerks who have
consequently demanded an increase in pay. He is quite per-
plexed over the situation and would like to know what to do,
He finds that the office hours are divided approximately as
follows : —
(1) Coming late, going early, lunch and days off .. 25', 4
(2) Attending to beggars 5%
(3) Answering wrong telephone calls 5"t
(4) Washing and brushing up lO'/t
(5) Interviewing book agents and vendors 7'V
(6) Preparing various government statements. Do-
minion, provincial and city 35' i
(7) Private telephone conversations lO'c
(8) The work of the firm '. I'/i
(9) Correcting- mistakes in item No. 8 2':'c
100'
Public school children of Fort William, Ont., have
$14,922 on deposit in the local school bank, which was
established in 1916.
"Good Business" propaganda on the part of manufac-
turing and wholesale firms must be coupled with the price
reductions which are necessary to make business good.
» * * * *
In spite of an immense reduction in exports to Great
Britain, total exports in 1920 were greater than in 1919 or
1918. Our imports, however, show a much greater increase.
*****
The large corporation is daily becoming more prominent
in Canada. A few years ago the formation of a million dol-
lar corporation was a rare event, now there are several
every week.
Saskatchewan's failure in local financing- proves the
futility of this method in the case of rapidly growing com-
munities, and the advantages of a free movement of capital
from where it accumulates to where it is needed.
The annexation by Montreal of twenty-two adjoining
municipalities would clear up a situation which is confusing
to the bondholder. On the other hand, would the city's credit
be enhanced by the addition of more financial difficulties?
The need for a recognition of deflation by all parties in
industry, coupled with a fair measure of optimism as to the
ability of this country to maintain business on sound lines, is
seen from the summary of board of trade results published in
this issue.
No dividends are probable for shareholders of the de-
funct Farmers' Bank, according to G. T. Clarkson, liquidator.
The most that the assets will do is to redeem the note issue
and provide for liquidating expenses. All the assets have
been disposed of, with the exception of a few judgments of
doubtful value and a one-quai-ter intei-est in the Cochrane
mining claim at Cobalt, which may have some value.
QUITE SO
They met by chance in the waiting room of a railway
station. "My friend," began the man with the bag full of
tracts, persuasively, "have you ever reflected on the short-
ness of life and the fact that death is inevitable?"
"Have I?" replied the man in the big overcoat, cheer-
fully. "Well,. I should say so. I'm an insurance agent."
February 4, 1921
THE MONETARY TIMES
Bank of Hamilton
HEAD OFFICE
HAMILTON
Established 1872
$5,000,000.00
4,970,300.00
4,685,150.00
Capital Authorized . . -
Capital P&id Up (December 31st, 1920) -
Reserve Fund (December 31st, 1920)
DirectoTt
SIR JOHN HEXDRIK. K.C.M.G., C.V.O., President
CYRUS A. BIRGK, Vice-President
HOWARD S. AMBROSE C. C. DALTON
ROBT. HOBSON W. E. PHIN
I PITBLAIX), K.C. W. P. KILEV
J. TCRNBULL W. A. WOOD
AI.AN V. YOUNG
Branches
At Montreal, and throughout the Provinces of
Ontario, Manitoba, Saskatchewan, Alberta and
British Columbia.
Savings Department at all Offices.
Deposits of $1 and upwards received.
Advances made for Manufacturing' and Farming
purposes.
Collections effected in all parts of Canada promptly
and cheaply.
Corrempondence Molicited
J. P. Bl-:i.I, - - General .Manager
CURRENT ACCOUNTS
Efficiency is hard to obtain and
highly paid for. Merchants and
Manufacturers will find this
Bank equipped and prepared to
give all Current Accounts the
efficient care and careful con-
sideration they demand.
Open a Current Account with
this Bank. Your interests will
be faithfully looked after by
experenced men.
IMPEKIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
Industry
of the Soil
T~'HE resources of this Bank are an
essential element in the Dominion's
fundamental industry — exploitation of
the soil.
For 53 years we have been promoting the
interests of agriculturists.
To-day, our co-operation is being utilized
from coast to coast in an endeavor to
increase the output of the fields.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO. ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Nevk'found-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55, OLD BROAD STREET, E.C.2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
J. L. Roi'TLY, branch manager for the Imperial Life at
Port Arthur has recently been elected president of the Port
Arthur Board of Trade.
Sir Adam Bfxk, chairman of the Ontario Hydro-Electric
Power Commission, has returned to Canada after a holiday
for a few weeks in Europe.
Stanley Johnston, of Johnston and Ward, the Mont-
real investment brokerage house, successors to F. B.
McCurdy and Com-
pany, with branches
in Quebec and the
Maritimes, has been
elected a member
of the Toronto
Stock Exchange.
Mr. Johnston has
had considerable
experience in finan-
cial circles in Can-
ada. He was with
the Union Bank of
Halifax from 1903
to 1909, when he
joined the Nova
Scotia Fire Insur-
ance Company, re-
maining- with that
organization until
1911. That same
year he became as-
sociated with F. B.
McCurdy and Com-
pany, and when the
war broke out he
went overseas with
the Canadian Machine Gun Corps. He returned to Canada
in 1919, and in October, 1920, with his pai'tner^, Alfred
Bowser, K. R. Schofield and R. H. Metzler, took over the
business of F. B. McCurdy and Company.
RussEL G. DlNGMAN, who has been manager of the bond
department of the Toronto investment house of F. H. Deacon
and Company, for the past two years, has been admitted to
partnership.
William J. Balfe, fire insurance adjuster, Toronto, has
accepted a position with the Underwriters Adjusting Com-
pany, of Chicago, as assistant manager of the Michigan de-
partment with headquarters at Detroit.
Major C. B. Topp, D.S.O., M.C., has recently been ap-
pointed director of the Government Insurance for Returned
Soldiers. It is intended to open offices in various centres
throughout the Dominion, one having already been opened in
Montreal.
Frank S. Johnson, assistant manager for Canada of
the Preferred Accident Insui'ance Company, of New York,
is severing his connection with that company, and on March
1, will join the insurance agency of Carl J. Jennings, Hamil- •
ton, Ont., as office manager and to handle claims.
J. H. AsHDOWN, of the Ashdown Hardware Company,
Winnipeg, who was elected president of the Western Canada
Colonization Association, has declined to accept the position,
because of his already numerous business associations which
demand constant attention. To The Monetary Times he
states that he can do nothing more with the Colonization
companj' than act as an ordinary director.
OBITUARY
Dr. J. H. Webb, medical director of the Mutual Life .As-
surance Company of Canada, died last week.
MANUFACTURERS' LIFE STATEMENT
The thirty-fourth annual report of the Manufactur-
ers' Life was presented to policyholders and shareholders
at the annual meeting held on February 3rd. .-^11 previous
records for new business were broken, the new insurances
being $52,268,849, while the amount in force on December
31st, 1920, reached the large total of $178.7.57,911. The
gain in insurance in force, of $39,371,180, also established
a high record.
The income from interest and dividends amounted to
$1,699,978. The assets of the company increased during the
year by $3,865,280, and now amount to $33,220,910. Of the
total invested assets over 95'/o consists of government and
municipal bonds, first mortgages on real estate, policy
loans, cash on hand and in banks. During 1920
the sum of $480,598 was paid to policyholders in dividends.
A further sum of $881,805 has been set aside for dividends
payable in 1921 and future years. After providing for these
items and maintaining a contingent reserve of $300,000, the
surplus amounts to $2,536,341. The mortality experienced
was extremely favorable, being only 51 per cent, of the ex-
pected.
ST. PAUL FIRE AND MARINE INSURANCE CO.
Another satisfactory year was completed by the St.
Paul Fire and Marine Insurance Co., of St. Paul, Minnesota,
in 1920. Net premiums written amounted to $13,978,046,
being an increase of $1,357,587 over the previous year. Un-
earned premiums are shown as $9,334,899, compared with
$7,565,432.
Tlie St. Paul Fire and Marine was organized in 1865 with
a paid-up capital of $75,000. By 1870 the company had total
assets of $285,546. The total assets now are $19,244,432, and
the paid-up capital is $2,000,000.
In Canada the company is well known because of its
rather extensive connections, particularly in the west. The
results of the Canadian operations for 1920 have not yet been
ascertained, but presumably, in view of the conditions out-
lined in the complete statement, they have been satisfactory.
In 1919, net cash received for all classes of business, but prin-
cipally fire, was $522,682, while the total Canadian income
was $544,220. At the end of 1919 the total assets held solely
for the protection of Canadian policyholders was $543,485.
Under the direction of C. F. Codere, Winnipeg, Man., who is
chief agent for the Dominion, the company has made good
progress here since it commenced to write business in 1907.
MONARCH LIFE MAKES NEW RECORD
Fourteen years of work in the Canadian life under-
writing field has brought the Monarch Life Assurance Com-
pany to a place of prominence among the other life insur-
ance companies of this country. As pointed out by J. W. W.
Stewart, managing director, at the annual meeting in Win-
nipeg last week, the preliminary work has been well done,
and rapid development can be expected in the future, as has
been the case with the best life companies with a similar
early experience. According to Mr. Stewart, the company is
already ahead of its own program for expansion by about
two years, and it is anticipated that within the next four
years the progress will be as great as during the whole period
since 1906.
Some features of the 1920 report are that net premiums
received amounted to $777,510, an increase of $174,497 over
1919. Assets increased $473,047 to $1,819,453, while the policy
reserve increased $434,846 to $1,691,225. New business during
the year totalled $8,171,239, an increase of $761,027 for the
year, while the total amount of assurances in force increased
$5,435,631 over 1919. Mortality claims amounted to $58,852,
or 30 per cent., of the expected, as against 58 per cent.
previously.
February 4, 1921
THE MONETARY TIMES
The Sterling Bank
OF CANADA
^iiiiiiiiiiiiiiiiiiuimiimiifDriiniiniiiminimniiiiiii
miiniiunimmiiiimiiinmniiiniitimiuiiis
Personal Banking Service — by bringing us into
closer contact with each client — enables us to
learn more of his individual needs and oppor-
tunities and thus offer him a broader Banking
Service.
Head Office
KING AND BAY STREETS, TORONTO
The National Bank of Scotland
Limited
Incorporated by Royal Charter and Act of Parliament. Estaslishbd I82S
Capital Subscribed /5,000.000 §25,000,000
Paid up 1,100.000 5,500,000
Uncalled 3,900.000 19,500,000
Reserve Fund 1 ,000,000 5 000,000
Head Office - EDINBURGH
WILLIA.M CARNEGIE. General Manager. GEORGK A. HUNTER, Sec.
LONDON OFFICE— 37 NICHOLAS LANE, LOMBARD ST., E.C.4
T. C. RIDDELL. DUGALD S.MITH.
Manager Assistant Manager
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London, are
retired on terms which will be furnished on application.
Corporation Trusts
Fiscal Agent
As Fiscal Agent for Corporations
or Municipalities, this Company at-
tends to such matters as the Disburse-
ment of Dividends and Interest, the
payment of Bonds and Coupons, the
safe keeping and application of Sink-
ing Funds to their intended use.
THE BANKERS'
TRVST GOMB\NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
THE STANDARD BANK
OF CANADA
The Annual General Meeting of the
Shareholders will be held at the Head
Office of the Bank in Toronto, on
Wednesday, the 23rd of February next.
at 12 o'clock noon.
By Order of the Board,
C. H. EASSON,
General Manager.
A Newspaper Devoted to
Municipal Bonds
HTHERIi is published in New York City a daily
and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond offerings.
Write for free specimen copies
THE BOND BUYER
New York, N.Y.
67 Pearl Street
fnOOrporatdd
- - 1855
Branchea
Throughout
Cunoda
^ftsitkii;
THE MOLSONS BANK
Capital and Reserve
Over i;ii) Kr,
$9,000,000 1
In the present re-adjustment of business condi- 1
tions through which we are now passing, a I
confidential discussion of your financial prob- 1
lems with the Manager of the Molsons Bank 1
mav help you materially. |
KDWARD (■ PRATT.
General .Manager ^,.,'1 |
ESTABLISHED 1879
AUoway & Champion
Bankers and Brokers
Members of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchange*
THE MONETARY TIMES
Volume 66.
Deposit Limitations of Loan and Trust Companies
Amendments to Dominion and Ontario Acts are Urged by Some Companies —
Would Enlarge Deposit Receiving Powers and Require Part of Assets to be
in Cash — Opponents Point Out that Present Powers Not Fully Utilized
POWER to accept more deposits is tlie object of represen-
tE'tions now being made by loan companies to the Do-
minion and Ontario governments. There are about 14 loan
companies operating under Dominion charter, and a consid-
erably larger number have charters from the Ontario govern-
ment. In the other provinces there is no general loan com-
panies K'Ct, the companies incorporated there operating under
special acts of incorporation.
Under the Dominion Loan Companies Act, 1914, deposits
are limited by section 6.5 as follows: "The company may re-
ceive money on deposit upon such terms a=; to interest, se-
curity, time of repayment and otherwise as may be agreed
upon, but the amount held' on deposit shall not a.t any time
exceed the aggregate amount of its then actually paid-up and
unimpaired capital stock, and of its cash actually in hand or
deposited in any chartered bank in Canada."
Section 68, limiting total liabilities, also affects deposits,
and reads as follows: "The aggregate of the sums of money
borrowed by the company shall not exceed four times the
combined amounts of its then actually paid-up and unim-
paired capital stock and reserve; Provided that the amount
of cash on hand or deposited in chartered banks in Canada
belonging to the company, shall be deducted from such aggre-
grate for the purpose of this section. Debenture stock is-
sued by the company shall be included in such aggregate."
Under the laws of Ontario loan companies may accept
deposits up to the total of their capital and reserve, plus
cash on hand and in banks.
Mortgage Loans Restricted
On January 21 a deputation representing loan companies
doing business in Ontario discussed the question with the
provincial government. Both the Dominion Mortgage and
Investment Association and the Land Mortgage Companies'
Association of Ontario favor an extension, but there aa-e sev-
eral individual companies who oppose it.
In a statement on January 20, Hume Cronyn, general
manager of the Huron and Erie . Mortgage Corporation, which
has been active in urging a change, said: —
"There has been a real shortage in mortgage funds
throughout Canada for six months, produced by several fac-
tors. For a generation prior to the war, mortgage com-
panies (among others) secured a laa-ge part of their lending
capital in Great Britain. For the time being, and perhaps
for some period in the future, this source has not only been
cut off, but large repayments of moneys borrowed abroad
have been made. Moreover, foreign loan corporations have
withdrawn from the field, and in some instances have dis-
posed of many millions of assets to Canadians. If the loan-
ing corporations are to continue to take their part in the
further development of Canada, it is necessary that every
effort should be made to replace from Canadian sources the
moneys which have been sent out of the country. Owing to
the high rates obtainable on government and municipal bonds,
it is increasingly difficult to persuade investors to purchase
loan company debentures, unless the rate of interest thereon
is raised to a figure which wipes out the narrow margin of
profit hitherto obtainable.
"At the present moment the supply of money most
readily available is to be found by way of deposits. As far
as the removing of the present restrictions impairing the con-
fidence of the British investors, this is very improbable, and
any company fearing this could very easily pass a rule stat-
ing that they would not take advantage of the new privilege
and notify their agents in Great Britain to this effect.
"The limit fixed by law governing deposits in loan com-
panies is wholly artificial and bears little relation to the
object desired, to wit — safety. It has been wisely suggested
that, instead of an arbitrary limit, these companies accept-
ing deposits should be obliged to keep on hand a definite pro-
portion of same in the most liquid of securities. This plan
has been adopted in the case of the savings banks of the
United States."
Some Opposing Views
Against these arguments, George H. Smith, assistant
general manager of the Canada Permanent Mortgage Cor-
poration, said recently: —
"There is no difference of opinion as to the inadequate
supply of funds for mortgage loans. When it is stated, how-
ever, that this shortage will be alleviated by the Ontario
legislature giving the companies power to take a larger
amount of deposits than is now authorized, we believe that
those who are approving this proposed measure on that
ground are deluding themselves and misleading the govern-
ment.
"By far the larger portion of the money which has been
loaned by Canadian mortgage corporations is that which has
been supplied by Britain. It is true that additional money
from Britain may not be expected immediately, though there
are not wanting evidences that conditions in this respect will
improve at no distant date. Meantime, however, large
amounts of debentures held in Britain are maturing half-
yearly. The widening of the powers ta receive deposits,
which the British investor looks upon as a preferred claim,
will unquestionably affect the willingness of the debenture
holders to renew. The Scottish agents of several of the
leading companies, including the two firms which have been
instrumental in sending to Canada a very large proportion
of the money invested in Canadian loan company debentures,
have unqualifiedly expressed themselves as opposed to the
change, on the ground that it would jeopardize the debenture
money and adversely affect the facilities for borrowing on
debentures in Britain when the market is again open.
"Under the existing restrictions, the Ontario loan com-
panies have unusued powers to tS'ke deposits to the amount
of more than twenty million dollars or, in other words, after
all these many years of effort they have not obtained deposits
of much more than half the amount already authorized. If
some of the larger companies which a.re operating under the
Dominion act, an act which limits the companies much more
than the Ontario act does, possessed the powers authorized
by the Ontario act, the amount of additional deposits which
might yet be received by the companies would be increased
to over thirty-one million dollars.
"The various companies have unused borrowing powers,
by way of deposits and debentures, to the extent of more
than ninety million dollars, a pretty ample field for the in-
crease of Canadian debenture money as well as deposits.
"We see it is claimed that it is difficult to obtain money
on debentures in Canada at present. I think I remember
seeing it stated in a recent issue of "The Globe," that in 1920
the Huron and Erie increased the amount of its Canadian
debentures more than in any previous year. In the same
period the Canada. Permanent increased its Canadian de-
benture money $431,000. This would seem to be evidence
that the debentures of our strong and old-established loan
companies are looked upon with favor by a considerable
section of the Canadian investing public.
"If a practical suggestion were desired, as to how the
amount of money immediately available for mortgage loans
might be considerably increased, it might be found by a
reference to the very Jarge amount of investments some of
the companies have in bonds and similar securities, which
February 4, 1921
THE MONETARY TIMES
16
Bank of New Zealand
ESTABLISHED IN 1861
Bankers to the New Zealand Government
CAPITAL
Paid-Up Capital ($13,528,811) and Reserre Fopd
($12,166,250) $ 25,695,061
Undivided Profits 713,039
Aggregate Aiieti al 31it Marcb, 1920 257.500,944
Head Office:
WELLINGTON
NEW ZEALAND
H. BUCKLETON
General Manager
THE BANK OF NEW /.l-.ALA.ND has liranches .it
Auckland, Wellington. Christchurch. tJunedin. and 203 other
places in New Zealand ; also at Melbourne and Sydney
(Australia), Suva and Levuka (Kiji), Apia (Samoa), and
London.
The B^nk has facilities for transacting every description
of Banking Business. It invites the establishment of Wool
and other Produce Credits, either in sterlinR or dollars, with
any of its Australasian Branches.
LONDON OFFICE: 1 Queen Victoria Street, Msdmod House, E.C. 4
CHIEF CANADIAN AGENTS .
Canadian Bank of Commerce Bank of Montreal
HqmeBankofCanadm
COLLECT THROUGH YOUR BANK
Sometimes you may have collections to
make in a nearby city or town, or elsewhere
in Canada, -or in the United States. We
have the facilities both at"home and abroad
for giving an unusually prompt service in
making collections for our customers.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s;!
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
hkad office. wfyblkn. saskatchewan
Branches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midale
Griffin, Colgate, Panginau, Radville, Assiniboia, Benson,
Verwood, Readlyn, Tribune, Kxpanse, Mossbank, Vantage,
Goodwater, Darmody, Stoughton, Osage, Creelman and
Lew van.
A GENERAL BANKING BUSINESS TRANSACTED
H. O POWELL. General Manager
TH€ M€RCHANT5 BANK
Head Ofirke : Montreal. OF CANADA
Established 1864.
Capital Paid-up. $10,029,622 Reserve Fund and Undivided Profits, $9,475,585
Total Deposits (30th October, 1920) - Over $170,000,000
Total Assets (SOth October, 1920) Over $209,000,000
Board of Directors :
Sir v. OrrOrk-Lewis, Bart.
Hon. C. C. Ballantyne
F. Howard Wilson
SIR H. MONTAGU ALLAN
Farouhar Robertson
Geo. L. Cains
Alfred B. Evans
Vice-President
Thomas Ahearn
Lt.-Col. J. R. Moodie
Hon. Lorne C. Webster
A. J UAWES
E. W. Kneeland
Gordon M. McGregor
General Manager • - D. C. Macarow
Supi. of Branches and Chief Inspector : T. E. Mkrrett
General Supervisor - - - i W. A. Meldrl'm
^A^ ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramsay and C. J. Crookall, Agenis
London, England, Office, 53 Cornhill : J. B. Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
16
THE MONETARY TIMES
Volume 66.
might be converted into mortgage loans. It is prudent for
companies to invest a limited proportion oi their funds in
negotiable securities, but when these amount, as in some
cases, to more than their inveotments in mortgages, it does
not furnish evidence of the bona fides of their earnest de-
sire to supply additional funds for mortgage loans. Accord-
ing to the latest available government reports, loan com-
panies had not less than $43,215,000 not loaned on mortgages
to the hungry property owners referred to, but invested in
bonds K'nd stocks."
SLIGHT RECOVERY IN TRADE
There is a gradual but certain improvement in business
throughout Canada, says the January 28th trade report of
the Canadian Credit Men's Trust Association. Reports from
the maritime provinces, Ontario and Quebec, all indicate
more activity in manufacturing, wholesale and retail lines,
orders from country tov^ns showing a decided improvement
on the early part of the month. Winnipeg and the west is
finding a distinct improvement in most wholesale lines. Re-
tailers are abandoning scare-head advertising for saner
methods, and the confidence of the public is shown in in-
creased sales in almost every line. Collections show an im-
provement.
R. G. Dun and Co. report on Montreal District condi-
tions as follows: — "Country winter roads are now in good
shape generally, favoring trade and traffic in the interior,
and district collections are reported rather better than fair.
Western payments are not up to the level of last year.
Wholesalers of dry goods are fairly well satisfied with the
development of business in their line. Buyers who have
been long holding back are in daily evidence among the ware-
houses, and that retailers' shelves throughout the country are
becoming bare is shown by the fact that quite a few orders
are being received for prompt shipment by express, some
of them ranging into quite respectable figures. The millinery
houses, who experienced three very quiet months in October,
November and December, report a noticeable improvement
in the demand, and are looking forward to a fair spring
business. The wholesale millinery openings are fixed for
the 28th of February. Boot and shoe orders still rule on
the light side, and manufacturers' purchases of leather and
findings are mainly confined to small immediate needs. A
fairly steady distribution is noted in staple groceries, and
there is little change in values. Refiners' deliveries of
sugars are about normal, and prices remain on the basis of
10%c. for standard granulated."
Toronto District conditions were described as follows: —
"When the final total of payments for January the fourth was
made up it was surprising what a creditable return merch-
ants made, and this did much to banish any fears, formerly
entertained, that a serious set back to trade might develop
later. On top of this, houses are to be found reporting busi-
ness to date ahead of the same period one year ago. Travel-
ers are out getting orders with few exceptions. Confidence
is being restored, unemployment improved a shade, and the
general outlook has a brighter aspect.'"
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended January 28, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
BANK BRANCH NOTES
The following is a list of branches of Canadian banks
which have been opened recently: —
Toronto, Avenue Road and St. Clair
Ave Bank of Nova Scotia.
London, Ont., Hamilton Rd Royal Bank of Canada.
Hamilton, Ont., King St. and Sand-
ford Ave Bank of Hamilton.
The Royal Bank of Canada is now installed in its new
building at Marpole, B.C.
The Union Bank has purchased the Garry building.
Portage Ave. and Garry St., Winnipeg, from George
Montagu-Black. The price was in the neighborhood of
$.500,000.
EXCHANGE QUOTATIONS
Glazebrook and Cronyn, exchange and bond brokers,
Toronto, report local exchange rates as follows: —
Buyers. Sellers. Counter.
N.Y. funds 11 13-16 pm 11 15-16 pm
Mont, funds Par Par Vs to Vi
Sterling —
Demand 4.3050 4.3125
Cable transfers 4.3150 4.3225
Bank of England rate, 7 per cent.
New York quotations of excha-nge on European countries,
as supplied by the National City Co., Ltd., Toronto, as at
February 3, 1921, follow: London, cable, 385; cheque, 384 V4;
Paris, cable, 7.11; cheque, 7.10; Italy, cable, 3.65; cheque, 3.64;
Belgium, cheque, 7.45; Swiss, cheque, 16.00; Spain, cheque,
14.00; Holland, cheque, 33.90; Denmark, cheque, 19.00; Nor-
way, cheque, 18.35; Sweden, cheque, 21.85; Berlin, cheque,
1.58; Finland, cheque, 3.50; Roumania, cheque, 1.40; Poland,
cheque, 13.00; Greece, cheque, 7.00.
Date.
c
O
0)
3
<
a
CQ
2
0^
1
©
eg
OS
Jan.. 28 . .
..12
20
4
1
1
4
3
1
0
46
Jan. 21 ..
..15
35
6
3
5
1
4
2
0
71
20
Jan. 14 . .
. . . 13
23
4
1
3
0
0
0
0
44
14
Jan. 7 .
...15
14
3
2
3
1
2
1
0
40
11
WEEKLY BANK CLEARINGS
The following are the bank clearings for the week ended
February 3, 1921, compared with the corresponding week
last year: —
Week ended Week ended
Feb. 3, '21. Feb. 5, '20. Changes.
Montreal $123,865,980 $143,627,188 —$19,761,208
Toronto 103,116,490 102,156,934 -|- 959,556
Winnipeg 52,907,246 48,544,050 + 4,363,196
Vancouver 13,545,577 15,176,091 — 1,630,514
Ottawa 9,426,704 11,026,575 — 1,599,871
Calgary 7,223,040 7,973,625 — 750,585
Hamilton 6,417,170 6,282,538 + 134,632
Quebec 5,856,748 6,667,438 — 810,690
Edmonton 5,921,214 4,578,986 -t- 1,342,228
Halifax 3,597,759 4,694,810 — 1,097,051
Regina 4,185,268 3,770,516 + 414,752
St. John 2,900,284 3,433,769 — 533,485
Victoria 2,214,193 2,876,335 — 662,142
Saskatoon 1,782,865 1,844,749 — 61,884
Moose Jaw 1,308,302 1,448,164 — 139,862
Brantford 1,213,116 1,379,302 — 166,186
Brandon 687.772 653,840 + 33,932
Fort William .... 844,364 1,064,054 — 219,690
Lethbridge 785,113 764,289 -1- 20,824
Medicine Hat 432,454 473,051 — 40,597
New Westminster . 826,509 648,279 -f- 178,230
Peterboro 924,055 855,608 + 68,447
Sherbrooke 1,061,614 1,030,694 + 30,920
Kitchener 891,439 1,078,959 — 187,520
Windsor 4,182,436 2,694,293 -|- 1,488,143
Prince Albert 414,302 422,794 — 8,492
Total $356,-532,014 $375,166,931 —$18,634,917
Moncton $ 1,108,766
February 4, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
PAID UP CAPITAL. - - C--eusHHO.s,. ,23.828.500.00
RESERVE FUND - ■ ■ - f ^^A ...... 16.375.000.00
RESERVE LIABILITY OF PROPRIETORS .^BV^St^f 23,828,500.00
nw*.i_^ J 64,032.000.00
AGGREGATE ASSETS 3Ist MARCH. 1920 ^'«aus> $377,721,211.00
Sir JOHN RUSSELL FRENCH. KB. E., General Manager
351 BRANCHES and AGENCIES in the Australian States, New Zealand. Fiji, Papua (New Guinea! . and London. The Bank transacts every description
of Australian Banking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET. E.C.2.
Agpnts: bank of .MONTREAL. ROVAL BANK OF CANADA
BUSINESS FOUNDED 1795
INCORPORATED IN CANADA 1897
AMERICAN BANK NOTE COMPANY
ENGRAVERS AND PRINTERS
BANKNOTES, BONDS. MUNICIPAL DEBENTURES, STOCK
CERTIFICATES, CHEQUES AND OTHER MONETARY DOCUMENTS
Special Safeguards Against Countcrfeitine Work Acceptable on all Stock Exchanges
Head Office and Works: OTTAWA 224 Wellington St.
BKANCH OFFICES
TORONTO
19 Melinda Street
WINNIPEG
Union Bank Bldg.
H. El)
. F.C.A.
Gborue Bdwarus. F.C.A. AiiT
H Pbhcival Edwards W. Pohkhov Morgan \V. Hbrdert Thompson
A. Geopfrbv Edwards Oswald N- Edwards Charles E. White
T. J. Macnamaha T. p. GEOiiiE J. L. Atkinson
K. A. MAPI' W A. LoiiiMEK John .M. Edwards
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO ..
CALGARY . .
VANCOUVER
WINNIPEG ..
MONTREAL
CORRESPONDENTS
HALIFAX. N.S. ST. JOHN, N.B.
LONDON, ENG PARIS, FRANC!
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT.
NEW YORK, USA,
-RICE & FIELDING, INC.-
FOREIGN FREIGHT FORWARDERS, CUSTOMS
BROKERS AND DRAWBACK AGENTS
81 VICTORIA ST.,
TORONTO
SOS CORISTINE BldC,
MONTREAL
CODES
Western Union
A B C. 5th & 6th Editions
OTHER OFHCES
II Broadwav.
_ NEW YORK
40 Ce.mtral St.,
BOSTON
Enquhka solictteJ in connection with either Export or Import business
Our Service to Investors
ADVICE
UNWISE investments can oftentimes he
avoided hy seeking the advice and judg-
ment of those expert in gauging the trend o(
financial affairs.
There is no difficulty in securing such advice
from us - advice that is based on the matured ex-
perience of men who have devoted years to the
study of every phase of investment finance.
In all cases where financial advice is sought vre
can place at your disposal the service of an or-
ganization competent to guide you with wisdom
and forethought.
Every reasonable precaution is taken to ensure
our clients against diminishment of values, by
frequent analysis of conditions governing individ-
ual investments.
MAY WE ADVISE YOU?
M. S. WHEELWRIGHT & CO.
<- J- f - * c? -.- Limited
Canadian Investment securities
TRANSPORTATION BLDG.,
132 St. Peter St. MONTREAL 63 Sparks St.
QUEBEC OTTAWA
18
THE MONETARY TIMES
Boards of Trade Review Year's Work
Organizations of Representative Centres of the Dominion Present Their
Opinions on the Situation— The Fall in Crop Prices Chief Grievance of the
West— Nova Scotia is Confident — Toronto and Montreal Look to Better Times
BOARDS of trade now holding- their annual meetings in
all parts of Canada, while by no means ovei-looking the
present dullness in business, are hopeful for the year 1921.
Substantial progress was made in 1920 in the securing of
new industries.
Twenty-Nine New Toronto Industries
W. H. Alderson, manager of the Ontario division of
the Gutta Pereha and Rubber Co., is president of the Tor-
onto Board of Trade for 1921, having been elected by ac-
clamation. D. A. Cameron, manager of the Toi'onto office of
the Canadian Bank of Commerce is first vice-president. The
bulk of the annual address given by the retiring president,
who in this case was C. Marriott, was given over to an ac-
count of the activities of the board during the past year.
Among other things it was pointed out that through the
activities of the Harbor Commission Industrial Department,
29 new industries were located in Toronto during 1920. Up
to the end of the year there were 35 parcels of Harbor
Commission reclaimed lands under lease, and eight under
option of lease, representing a total of 270 acres.
In reviewing general business, Mr. Marriott said : "The
decline in value in most lines has been very marked, and it
may be said that the movement has gone too far in some
directions for confidence to be restored, or for new buying to
be stimulated, until it has gone farther in other directions.
The buying power of the people has been impaired and is
more out of balance than it has been at any previous time.
Our farming population, our manufacturers, merchants,
operatives, and the army of unemployed have suffered a loss
of buying power and it would be folly to think that we can
go on making and selling goods as though this were not the
case. The situation is one which we must face with courage
and determination and by a policy of judicious economy,
curtailment of imports, development of our resources and
by increased production for export. In this way we must
seek to place the commerce of the country upon a more stable
basis."
Montreal Board Membership Increased
The annual report of the Montreal Board of Trade sub-
mitted at the annual meeting on January 25, shows that dur-
ing 1920, the membership increased by seventy, bring-ing the
roll well over 2,200. The statement of finances showed total
revenues of $133,388, with expenditures totalling $125,596,
leaving a balance as a net surplus for the year of $7,792.
The total figures showed gross assets of $805,345, with
liabilities of $642,452, leaving a total to surplus account of
$162,892, to meet interest charges, bonds as they fall due,
and other liabilities. The assets included investments in vari-
ous Dominion war issues to the extent of $28,957, the board's
own bonds, to a large extent redeemed and held for cancel-
lation, $186,526, and a valuation of their site, building and
furniture at $600,000.
In their general report the council sets forth that the
past year will go into history as the first year of adjust-
ment from war prices to normal conditions, following the
period of inflated prices which came immediately after the
war, until in the fall of 1920 the general break in prices
began. The second half of the year had brought a series of
sharp declines which had affected almost every commodity.
This began with boots and shoes, while hides fell to below
pre-war prices, with no demand. Furs had dropped 50 per
cent. Raw cotton had dropped about in the same proportion,
and the manufactured article was marked down. The rub-
ber business had suffered sharp drops, but was beginning the
new year on a sound basis, and better results were looked
for. Foodstuft's had declined, but not in the same proportion'
as other products.
These declines, the report set forth, were largely due to
the refusal of the public to buy at the higher prices. The
result was that 1921 began with a general slowing down of
industry, increasing unemployment, and, as a consequence,
general readjustments of wages in a downward direction.
Indications were that within a few months many such read-
justments would have been completed. Manufacturers, whole-
salers and retailers had all made cemcessions in the matter
of profits, and in many instances had incurred losses. "It is
now the turn of the other important faction in the making
of prices, wages, and it begins to look as though the wage-
earner recognizes the situation, and will be prepared to make
concessions also. Should this prove to be the case the first
serious step in readjustment will have been taken, and indus-
try may once more be started forward upon a steadier and
more satisfactory course."
Senator Lome C. Webster is president of the board for
1921, having been elected by acclamation.
Border Chamber of Commerce
The annual meeting of the Border Chamber of Com-
merce was held at Windsor, Ont., on January 20. Lieut. -Col.
W. L. McGregor was elected president for 1921. The re-
tiring president, M. G. Campbell submitted an exhaustive
report covering the year's activities. Since early last spring,
the report stated, the chamber had interested itself in the
question of amalgamation of the Border Cities. It was ad-
mitted that there was little tangible progress to record in
that direction but the interest of the public in the proposi-
tion had been stimulated and the president felt that, in itself,
was something worth while.
During the year 1920, the report continues, as a result
of the efforts of the chamber every available building in the
Border Cities has been .filled with some kind of an industrial
plant. Many of them, it was admitted, are not accommodated
to the best advantage, but the chamber did its best under the
circumstances and hoped for an improvement when times
returned to normal.
Lethbridge and Irrigation
A report which is particularly interesting, more especially
to the western public, is that of the Lethbridge Board of
Trade. G. R. Marnoch, who has been president of the board
for seven years, and who has again been elected chief, has
given a comprehensive review of the general situation. Mr.
Marnoch states:
"General business in Lethbridge and the district ha.i
kept up well in volume. Our merchants both wholesale and
retail, are steadily endeavoring to adjust their merchandis-
ing to the changing conditions in which we all find ourselves.
The bank clearings this year are greater than they have
ever been before.
"As to agricultural prospects for 1921, it is difficult just
at present to make a surmise. Unfortunately we have again
such a condition as that which prevailed at this same time
last year, that is, there is practically no reserve moisture
stored in the soil; there is this difference, however, that there
is no hard shell of frost covering the top-soil, so that if we
have snows that lie on the ground to be gently melted by the
Chinook winds, the resulting moisture will be available in the
spring. A great deal will 'therefor^ depend on the spring
rains."
Referring to the irrigation question, Mr. Marnoch con-
tinued: "The future stability of our agricultural and com-
February 4, 1921
THE MONETARY TIMES
pilllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllilllllllllllH^
The Great-West Life
I Assurance Company |
Condensed statements for 1920 as announced at the Annual Meeting, held February 1st, 1921. '
New Business Issued ... $ 60,703,525
Exceeding 1919 by . . . 9,125,626
Business in force .... 256,850,251
Increase in business in force 44,289,975
Income (Premiums and Interest) $ 9,967,436
Increase for the year 1,369,042
Assets
Net increase for the year
37,382,647
5,169,532
Surplus earned in 1920 (the largest in the Company's history), $1,388,897
The interest rate earned was 7.20 per cent., excluding profits from securities sold. Including this item, the gross inter-
est yield was 7.43 per cent. The rate of mortality has fallen to 49 per cent, of the expected practically the pre war basis.
These splendid results have enabled the Company lo make its yearly apportionments to policyholders on the usual
generous scale.
A 1921 RESULT
20 Year Endowment. Age 21. $1,000. Premium $46.73
Policy issued in 1901, maturing in 1921
Total Cash Value available in 1921 - $1,439
Head Office
ESTABLISHED 1892
Winnipeg
liiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiyiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin^
Money Is Worth More to You, Too
Lenders charge more interest on loans today. So why shouldn't you
get more interest on your savings deposits ?
You wouldn't refuse an increase in your wa^es, would you? Why.
then, should your«savings earn a less rate when you can get 4% for it >
The Union Trust Company will pay you interest at 4% per annum,
compounded regularly. Come and open your account here. If you
cannot conveniently call, open your account by registered mail.
Deposits promptly acknowledged and withdrawals by mail accur-
ately and safely dispatched.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS
Winnipeg TORONTO London. Eng.
Do Not Put Off Until To-morrow
that definite arranj^eim-nt for tlic (ii.stribution of your Kstate
by an Kxecutor or Trustee having the requisite responsi-
bility and experience lo ensure your wishes being satisfactor-
ily carried out. Appoint to-day as your Executor and Trustee
THE CANADA PERMANENT TRUST COMPANY
Paid-up Capital
Sl.OOO.OOO
W. G. Gooderham
Col. A. E. Goodtrh.-lm
P. Gordon Osier
E.R.C. Clarkso
Manaeer. Ont
DIRECTORS
R. S Hudson
J. H. G. Hagarty
George H. Smith
TORONTO STREET
TORONTO
John Massey
John Campbell. S.S.C.
William Mulock
George W. Allan. K.C.. M.P.
■io Branch: A. E. He
Be sure your WILL is made, naming a Strong
TRUST COMPANY as your
EXECUTOR
Ask for Booklet: "The Corporate Executor."
CAPITAL. ISSUED AND SUBSCRIBED
PAID-TTP CAPITAL AND RESERVE....
.$1,171,700.00
. 1,172.000 00
The Imperial Canadian Trust Co.
Ezecntor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE : WINNIPEG. CAN.
BRANCHES :
w
E fiave 450 good businesses for sale in the central
portion of Alberta. Everything from a General
Store to a small Confectionery
If you want a business in Alberta you want us.
WHYTE & CO., LIMITED
Businetl Brokers
111 Pantages Building - Edmonton, Alberta
The Security Trust Company, Limited
Head Office
Calgary, Alberta
ACTS AS
Liquidator, Trustee, Receiver, Stock and Bond Broken,
Administrator, Executor. General Financial Agents.
W. H. COWACHER Prcs. and Managing Dire
20
THE MONETARY TIMES
Volume 66
mercial progress hinges upon irrigation developments; and
we look upon it as being the bounden duty, as well as the
privilege, of both the Dominion and Alberta governments
to further that progress with the utmost expedition. There
is a good deal of talk about increasing our agricultural
population ; but, as any well-conducted business always re-
cognizes, you must be able to say that you are taking good
care of the people you are already dealing with, before you
start out to enlarge your business."
Wheat Movement Through Vancouver
In his annual address at the annual meeting of the Cal-
gary, Alta., bo&rd of trade last week, J. A. Hornibrook,
retiring president, referred to the trying times of the recon-
struction period, the reaction that had set in after the war,
the sales tax and the luxury tax, the increase in bank clear-
ings, the re-adjustment of prices with the consequent losses
to business men, and the world-wide conditions of industry,
and stated that "while the present business outlook is not as
bright a'3 we would like to see it and will require careful
handling, still there is no reason for gloom. If we keep our
heads and exercise due care and proper economy, I see no
reason why we cannot come safely through this readjustment
period and in the near future enjoy more prosperous con-
ditions."
With regard to agriculture the president referred to the
large crop produced in Alberta, but regretted that the low
prices realized did not come up to the expectations of the
farmers owing to the expense of putting in the crops, which
he referred to &s "the most expensive crop ever produced
in Alberta." The increase in freight rates also added to the
burden of the farmers, but Mr. Hornibrook stated that there
are indications that in future years more Alberta wheat
will be moved through Vancouver, which will mean a great
deal to Alberta.
Mr. Hornil)rook among other things alluded to the good
work of the secretary, J. H. Hanna. The election of officers
resulted in the appointment of Briice L. Robinson as president.
Gait Establishing Industrial Connections
In a review of the past year's work at the annual meet-
ing of the Gait, Ont.,' board of trade last week, the retiring
president, H. J. Bassett, stated: —
"The industriaJ committee has been very busy during the
past year, but since it was a period of after-war reconstruc-
tion and high building costs, the erection of new plants was
prevented. The committee established connections with some
American firms that planned locating branches in Canada,
but found it necessary to drop their plans on account of
high building costs. However, the committee ha.s not lost
these connections and when the opportune time comes can
reopen negotiations. We had requests from firms for empty
buildings but unfortunately from one standpoint and for-
tunately from another, we had no empty factory buildings
to offer."
S. L. Cl&rk, who was vice-president of the board last
year, was elected president for 1921. H. J. Foster is secre-
tary.
Nova Scotia Can Weather Readjustment
"The ye&r under review has seen a more serious decline
in values and stoppage of export trade than anticipated,"
stated A. H. Whitman, retiring president of the Halifax
Board of Trade, at the annual meeting last week. "I think
I am safe in saying that Nova Scotia is likely to weather
the period of readjustment as well, if not better than, any
part of the empire. Our wealth consists mostly in our nat-
ural resources. The two necessities ahead of us are work
and thrift."
Mr. Whitman reviewed briefly the activities of the board
during the year, referring to the efficient work of the secre-
tary, E. A. Saunders. Following the submission of the other
usual reports a discussion on taxation took place. J. Cuth-
bertson Doyle presented a report of the Retail Merchants'
Association on the civic taxation problem of Halifax. It
stated that the association had disapproved of the present
system since its inception, and felt that any change would
only be a partial change of existing abuses, since, to ensure
an effective system, a uniform tax was required for entire
province of Nova Scotia. Notice was given that a bill would
be introduced at the next session of the legislature asking
for a commission to be appointed to go thoroughly into the
provincial tax system.
Charlottetown Reviews Trade
Reviewing the agricultural and industrial developments
in the district and province last year, Isaac Carter, retiring
president of the Charlottetown Board of Trade, stated at the
annual meeting last week: "We all know that the wheat and
oat crop have not turned out so well as was estimated some
time ago, although the estimate is much below that of last
year, which showed for the oats over six million bushels with
six thousand less acreage, and for wheat two hundred thous-
and bushels more than this year. The hay on an average is
at least one half a ton per acre less than' for last year.
Potatoes have given a slightly better yield, but rot has been
much more prevalent. Roots in some localities were excel-
lent while in other sections they were almost a failure." Mr.
Carter also referred to the success of the da-iry and fisheries
of the province.
Another new industry was started in the city a few
months ago by the Charlottetown Milling Co., Ltd., who
erected a new flour mill with a capacity of one hundred
barrels of flour per day. The company is buying wheat from
the farmers and importing grades of Ontario and western
wheat which are producing high-grade flour.
A. A. Pomeroy, vice-president of the board last year,
was elected to the presidency this year, while W. L. Higgins
was re-elected secretary.
Fredericton Board of Trade
Mayor John A. Reid, of Fredericton, N.B., was re-elected
president of the local board of trade at its annual meeting
last week. Mr. Reid reviewed the work of the past year,
which was chiefly of local interest. "The retail and whole-
sale merchants of this city during the past year have been
probably more fortunate than those of many cities in Can-
ada," he said. "The slowing up of industry in general has
not affected Fredericton to any great extent, and I believe
before the end of the year is reached conditions will again
be stabilized and that we may look foi-ward with confidence,
believing we are about due for a wave of renewed prosperity."
Several matters in connection with the president's report
were discussed, among these being the question of delimiting
the areas of the city and on motion a resolution to take steps
to secure legislation at the next session of the legislature
for delimiting the boundaries of the city was passed. The
question of a new C.P.R. station was also taken up and the
transportation committee was authorized to press the C.P.R.
authorities in the matter.
Civic Consciousness of Community
At the annual meeting of the Sydney, N.S., board of
trade on January 17, A. N. McLennan, retiring president
was re-elected chief. The principal speaker was J. Grove
Smith, Dominion fire commissioner. Mr. Smith gave an in-
structive address on the work of boards of trade with re-
ference to fire loss and protection. He stated that the board
represented the civic consciousness of the community. As a
result of present depression, over-insurance was a common
occurrence. Since the period of depression had begun in
Canada, its fire losses have increased very largely. This was
not due to fires set with criminal intent, but rather it is due
largely to criminal negligence and carelessness on the part
of business men. In support of this statement Mr. Smith
said that of 27,000 fires in Canada in 1919 with a loss of
.$27,800,000 59 fires totalled $12,000,000. These fires were
obviously not in dwelling houses.
February 4, 1921
THE MONETARY TiaiES
21
INTEREST
RETURN
INVEST YOUR SAVINGS
in a 5%% DEBENTURE of
The Great West Permanent
Loan Company
SECDRITY
Paid-up Capital $2,413,018.81
Reserves 1,050,000.00
HEAD OFFICE, WINNIPEG
BRANCHES: Toronto, Regina, Calgary,
EdmontOD, Vancouver, Victoria; Edinburgh,
Scotland.
SIXTY-FIVE YEARS
is a long time in the history of this young Canada of ours, yet during
all that period we have been safeguarding and assisting in the increasing
of the savings of many thousands of Canadians. The steady progress
the Corporation has made bears testimony not only to the confidence
investors have in this old institution, but also to the unexcelled facilities
we extend to depositors-
Interest allowed at
THREE AND ONE -HALF
per cent, per annum, paid and compounded half-yearly.
The Corporation makes a special feature of Savings Accounts, and
welcomes the small depositor.
Canada Permanent Mortgage Corporation
14-1& TORONTO STREET
Paid-up Capital
Reserve Fund (earned)
TORONTO
$6,000,000.00
5.750,000.00
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building, London. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PURDOM. K.C.. President NATHANIEL MILLS. Manager
The Hamilton Provident & Loan Society
Head Office. King Stre<
Capital Paid-up. $1,200,000. R
Profit., $1,280,570.59. Total
TRUSTEKS ANO EXECUTORS
!t. Hamilton. Ont.
?«erve Fund and Surplus
Aiiiict>, $4,764,339.21.
cd by La
Funds in the DEBENTURES and SAVINGS DEPARTMENT of thi;
Society.
GEOROE HOPE. President U. .\1. CA.MERON. Treasurci
Ontario Loan
& Debenture Co.
LONDON Incorporated 1870 Canada
CAPITAL AND Undivided Profits .. $3,900,000
lORT TERM (3 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
51 0/ SHC
2/0
5^1
JOHN McCLAKV. President
A. M. SMART. Manager
/^VER '200 Corporations,
^^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office. ;No. 13»roronto Street
Capital Account. !it5','l..-..-.<».<K> Reserve Kund. S67U.OOO.0U
Total Assets. S.t.-.MB.LM.'ie
President. WELLINGTON FRANCIS. Esq.. K.C,
Vice-President. HERBERT LANGLOIS. Esq,
Debentures issued to pay 5%, a LeRal Investment for Trust Funds.
Deposits received at 4% interest, withdrawable by cheque.
Loans made on improved Real Eet.ite on favorable terms.
WALTER GILLESPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agent.s for investment in all classes oi Securities,
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal -Xgent for B. C. Municipalities,
Inqairies Invited
Venrral Manager LI<-nl.-(ol. t;. H. DOKKELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Adniinistralor for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office
Swift Current, Saskatchewan
JOHN R LITTI.R. Managing Director
THE MONETARY TIMES
Volume 66.
LOCAL FINANCING PROVED DISAPPOINTMENT
Province Raised Only $350,000, and Municipal Issues Were Too
Small to Test Market— Developments of the Past Year
IN :i. survey of 1920, F. J. James, of Nay and James, Re-
gina, bond dealers, said to The Monetary Times: —
"There is no doubt .that the condition of sterling ex-
change at the opening of the year had a most marked effect
upon Canadian security prices in general and western muni-
cipal bonds were by no means affected the least. While the
offerings of rural municipalities, schools and telephone bonds
were, in the early months of the year, quite limited, neverthe-
less they were not easily marketed. With straight-term
sterling obligations of western provinces yielding around 6%
per cent, and the debentures of western cities available on a
7 per cent, basis, it was not difficult (apart from anything
else) to understand the reluctance of investors to buy in-
staJment bonds of western municipalities except at most
attractive prices.
"As the year progressed the interest rate tended to
increase, and by mid-year the demand for our smaller western
issues was quite limited, even on an 8 per cent, basis. A fair
amount of schools and rural telephones were disposed of in
the months of October, November and December, but, gen-
erally speaking, at 8 per cent, to the investor. Tightness of
money a.nd the very attractive yields procurable on Victory
bonds and such high-grade securities as Ontario province,
Saskatchewan province and city of Toronto, were undoubtedly
contributing factors towards bringing about this condition.
Western town bonds were most difficult to dispose of; indeed,
so far as we are aware, very few issues of this character
found purchasers in 1920. In the years from, say, 1905 to
1912, these securities were favored by a wide list of investors
and even small towns often obtained their money at less
than a 6 per cent. rate. Unfortunately, the defaults of cer-
tain of our urban municipalities since the latter date has
created a. decidedly unfavorable feeling towards this class of
security, and what is greatly to be deplored is the fact that
this feeling has had a tendency to prejudice many investors
against those classes of security which have never (with
very few exceptions indeed) failed to meet their payments
of principal and interest promptly.
Municipal Defaults
"We believe that our Local Government Board fully ap-
preciates the importance of maintaining our municipal se-
curities at highest possible standing and the board is care-
fully scanning all applications for loans, thus ensuring to
the investor that security for his money which is so much
desired. At the same time our government by doing all in
its power to assist investors to collect what is already due
to them from these defaulting municipalities (limited in num-
ber though they be) will assuredly be working in the interest
of all the districts and municipalities in the province. Such
assistance, of course, cannot be extended to the payment of
principal sums in arre&rs or even guaranteeing the same, but
it might go so far as to taking care of past due interest. It
may be argued that by so doing, municipalities would be
encouraged to become slack in meeting their obligations, but
we feel that the government could protect itself in such a
manner as to make it decidedly unpleas&nt as well as un-
profitable for municipalities to throw this responsibility upon
the provincial government.
"It must be admitted that investors have long memories
and once bitten it is generally a case of more than twice shy.
"The opportunities for investment of moneys at remun-
erative rates of interest are likely to be many for the next
few ye&rs at least, and we cannot afford to overlook this
fact and if there is anything that we need in our province
next to man power on the land, it is money for development.
A depreciation in value equal to a quarter of one per cent,
in yield on all the Saskatchewan rural municipalities, rural
telephones, school di.stricts and town debentures sold in one
year, would, we believe, not nea-rly offset the bad effect
brought about by the above-mentioned conditions. It must
be remembered that a large amount of securities of our
smaller municipalities as well as the larger urban centres
are held in the United States; a portion of this latter market
stands closed to us at the present time.
Provincial Issues
"On the whole, Saskatchewan provincial issues marketed
during the year brought good prices, though, at anything
like the present rate of exchange the two short-term issues
which provided for payment of principal and interest in
United States funds will mean dear borrowing. The three
million dollars twenty-year six per cent, issue disposed of
in the early fall brought a very good price, and we think
the provincial treasurer acted wisely when he accepted the
bid providing for repayment of principal and intei'est in
Canadian funds only. In October the provincial treasurer
announced that a campaign for the sale of three million five
hundred thousand dollars' worth of Saskatchewan farm
loan debentures would start on the 26th of October and con-
tinue for six weeks. The executive of the Saskatchewan
Press Association took charge of the publicity side of the
campaign, and municipal officials throughout the province
were requested to handle the organization work. While we
believe the provincial treasurer was fairly well satisfied with
the results of the campaign considering the conditions under
which it had been carried on, the campaign nevertheless at
the close only resulted in the sale of some three hundred
and thirty thousand dollars.
"These bonds were issued bearing interest at the rate
of 5 per cent, per annum, payable half-yeai'ly, and are re-
deemable at par at any time by giving the provincial
treasurer three months' notice in writing. In our opinion,
conditions for the sale of these bonds in our province were
most unfavorable; our farmers who "had just succeeded in
garnering a fair crop under the most expensive conditions
ever confronted by them in the raising of the products of
the farm, had to face a rapidly falling grain market, and it
was impossible for them to invest much money in farm loan
debentures under these circumstances. During the year at
least two of our cities put on an "over the counter" sale of
bonds. The amounts offered were small and the conditions
generally were not such as to demonstrate the practicability
of this method of distribution. It may not be difficult from
time to time to market small blocks of securities within our
own province, as there is undoubtedly a growing market in
the west for municipal bonds, still we doubt whether it will
be feasible for some years to come at least to successfully
dispose of large blocks of such securities.
"Regina sold something over $100,000 in this manner,
but they went slowly. This, however, we think was partly
due to the fact that they were offered at par for 6 per cent.,
while at the same time earlier issues of the city were being
offered to investors in the open market at a materially better
yield.
Outlook is Fairly Good
"Summing up the situation, Saskatchewan can look for-
ward to the year now about to open with a sense of satis-
faction; the most rural of all the provinces in the Dominion
has yet a vast area of land awaiting the right type of
settler and settlers will be offering themselves in large num-
bers before very long. Let us look them over carefully that
we may make no mistake. We want those who will as-
similate rapidly and become good Canadian citizens. It is
true that vvheat and other grains have fallen in price very
materially, but there is every reason to confidently expect
the downward trend in price of general commodities which
has been in evidence for some time to continue, though the
decline may be more gradual. Let us hope that with these
lower prices will follow lower rates of interest, so that our
communities may be developed along sane lines at a less
burdensome cost. Nevertheless, it would be unwise to look
for any great reduction in interest rate."
Februarv 4, 1921
THE MONETARY TIMES
23
DIVIDENO NOTICES
BANK OF MONTREAL
Notice is hereby given that a Dividend of Three Per
Cent, upon the paid-up Capital Stock of this Institution has
been declared for the current quarter, payable on and after
Tuesday, the First Day of March next to Shareholders of
record of 31st January, 1921.
By Order of the Board.
FREDERICK WILLIAMS-TAYLOR,
General Manager.
Montreal, 21st January, 1921. 373
THE ROYAL BANK OF CANADA
DIVIDEND No. 134
Notice is hereby given that a Dividend of Three Per
Cent, (being at the rate of twelve per cent, per annum) upon
the paid-up capital stock of this bank has been declared for
the current quarter, and will be payable at the bank and its
branches on and after Tuesday, the first day of March next
to shareholders of record at the close of business on the 15th
day of February.
By Order of the Board.
C. E. NEILL, General Manager.
Montreal, Que., January 14, 1921. 371
THE CANADIAN BANK OF COMMERCE
DIVIDEND No. 136
Notice is hereby given that a dividend of Three per cent,
upon the capital stock of this Bank, being at the rate of
twelve per cent, per annum, has been declared for the quarter
ending 28th February next, and that the same will be pay-
able at the Bank and its Branches on and after Tuesday,
1st March, 1921, to shareholders of record at the close of
business on the 13th day of Februarj-, 1921.
By Order of the Board.
JOHN AIRD, General Manager.
Toronto, 21st January, 1921. 279
/^OMPANY controlling large volume
of insurance and well represented
all over the West, requires additional
general agencies for Fire, Casualty and
Hail Insurance Companies in Western
Provinces.
Apply Box 385, Monetary Times, Toronto,
or Box 502 Monetary Times,
1206 McArthur Building, Winnipeg.
Oebentures for Sale
CITY OF PORTAGE LA PRAIRIE
DEBENTURES
$20,000.00, 20-year, G'/i Waterworks Debentures.
$34,000.00, 20-year, 69;. Electric Light Debentures.
In Denominations of $500.00, Coupon-bearing Bonds,
dated January 2nd, 1920, maturing January 2nd, 1940. Re-
tired by Sinking Funds at the end of the term. Interest
Coupons payable July 2nd and January 2nd at par, Montreal,
Toronto and Portage la Prairie.
Sealed Bids will be received by the City Treasurer up
to Five o'clock of Friday. February 11th, 1921.
W. R. GRIEVE,
363 Secretary-Treasurer.
THE PUBLIC SERVICE SUPERANNUATION BOARD
TENDERS FOR GROUP LIFE INSURANCE
Pursuant to Section 6 of The Ontario Public Service
Superannuation Act. tenders for a policy contract covering
group life insurance upon employees in the Ontario Public
Service will be received by The Public SerT,'ice Superannua-
tion Board to February }5, 1921. Companies tendering will
submit premium rates and drafts of policies of group insur-
ance. The Board reserves the right to refuse any or all
tenders.
Such information as may be required may be obtamed
on application in writing to the Secretary of the Board,
Parliament Buildings, Toronto. 385
Condensed Advertisements
" Positions Wanted." 3c per word : all other condensed advertisements
Sc. per word. Minimum charge for any condensed advertisement. 65c
per insertion. All condensed advertisements must conform to usual
Style. Condensed advertisements, on account of the very low rates
fharged for them, are payable in advance ; 50 per cent, extra if charged.
EXECUTIVE. — Age 35. Twenty years' experience.
Eight years in Railway Operating and Construction Depart-
ment, twelve years in .Accounting Department, past five
years as General Auditor. Expert Accountant, thorough
knowledge of railway and construction materials, well in-
formed in financial matters, seeks engagement. Box 381,
Monclarv Times, Toronto.
A STRONG American fire insurance company intending
to enter the Provinces of Ontario and Quebec, is desirous of
receiving applications for the position of Superintendent of
-Agencies. Communications will be treated confidentially.
Box 387, .\fonclarv Times, Toronto.
The executive of the Canadian Manufacturers' .Associa-
tion, presided over by J. S. McKinnon, of Toronto, met in
Hamilton on January 27 for the" purpose of receiving reports
on transportation and legal matters.
24
THE M O.N ETARY TIMES
CANADA'S EXPORT TKADE MAINTAINED
Xollnvithstandinfr Fallinj; Off in Britain's Purchases Here of
$187.000,000— Small Adverse Balance for Current
Year of 1920
l^OR the current year ended December, 1920, an increase
■'■ in Canada's trade of nearly $404,000,000, as compared
with 1919, and $485,857,32.3, as compared with 1918, is shown.
.A small adverse balance of some $;i4,000,000 is shown, but
exports are substantially ahead of 1919, while there is an
increase of $59,000,000 over 1918.
It is worthy of notice that our e.xport trade has been
maintained despite the fact that the United Kingdom has
been buying about $187,000,000 less than in 1919. At the
present time very little business is being done by Canadians
with British buyers, except in foodstuffs and raw materials
and deliveries under old orders. The Canadian Export Asso-
ciation, representing about thirty Canadian manufacturers,
and managed in London, England, by Harry and Winfield
Sifton, recently closed its offices.
Our exports to the United States continue to show a
healthy growth, while imports from that country &re inclined
to slacken. Purchases from our southern neighbors for the
twelve months ended November, 1920, were shown at about
$927,000,000, while for the period now under review, the
figure is some $6,000,000 less.
There are excellent possibilities for increasing Canada's
trade with India, Ceylon, Malaya and the Dutch East Indies,
in the opinion of Henry R. Pousette, who has just returned
from India to t&ke up his duties as commissioner of com-
merce of the Dominion. It was Mr. Pousette's mission to in-
vestigate the openings for trade with India particularly.
Imports i
Dutiable Goods
Free Goods
Total imports (mdse.) .
Duty collected | 154.849,472
Twelve Months ending December
1918
511,118.455
399,030.685
Total exports (mdse.)
Imports by Countries
United Kingdom
Australia
British East Indies
British Guiana
British South Africa
British West Indies
Hong Kong
Newfoundland
New Zealand
Other British Empire
Argentine Republic
Belgium
Brazil
China
Cuba
France
Greece
Italy
Japan
Netherlands
United States
Other Foreign Countries
Exports bv Countries
(Canadian Produce only.)
United Kingdom
Australia
British East Indies
British Guiana
British South Africa
British West Indies
Hong Kong
Newfoundland . .
New Zealand
Other British Empire
Argentine Republic
Belgium
Brazil
China
Cuba
France
Greece
Italy
Japan
Netherlands
United States
Other Foreign Countries
1,243,729,772 i 1,294.830.372
,8S4,?30
,084,963
,027,295
,088,972
,331.842
.928,909
,343.958
,287,340
.014,313
,371,069
,726.489
7.716
.128,616
,867,405
,034,654
,746,417
18,894
642.071
,184,893
582,507
,339,427
.507,060
!.S20.873
1,169,474
!.814,37S
i.216,001
),704,0'il
f,353.709
968,766
1,875.927
1,60.5,498
!,50,5.752
i,683.179
82.067
1,825,859
i,934,663
1.879.779
7.378.476
9. ISO
>,426,642
1,624,274
597,008
i. 182,149
1,978.788
87,659,198
I .525,6S6
13.408.518
8.065,019
728,601
I0..549..566
1.786.3.56
2.063,700
3.933,5,59
1.152.732
2.074,060
359.103
1,607,970
1,245,740
12,565,712
6,784,860
531,836
706,35S
12,697,297
1,548,125
739.5i)7.697
30.421.950
528.036.604
13.501.923
6,508.195
2.925.728
10.504i740
11.321 642
937,458
16.464.766
7,361,835
7.401„3,55
6,887.395
19,438.484
2,141.232
4.825,534
5.642 675
. 65,116,174
16.599.847
16.7.54,176
7..569.410
3.983,389
4.54 595,204
32,477.840
231,479.294
1,076.660
17.943.559
5.842.244
208,190
15,871,496
4,760,311
3,066,209
4,509.911
1.405.239
3.570,283
4,197,965
2,435 883
2,001.307
33.198,207
20.702.392
912,480
1,873.749
13,861,041
3.894.364
921,625,825
42.484,412
341.168.451
17 025,124
6,397,147
3.785,441
14,126,132
13 869.689
2,301,606
17,514,494
10,992.895
4,859,626
7.605,689
47.7I7.44S
3,4.55.353
6,817,109
7,560.01 1
36.620.199
29.600,894
55,907.929
7,412,882
19.476.585
559.956,669
58,486.069
MONTREAL .4ND QUEBEC SAVINGS INSTITUTIONS
Changes shown in the December statement of the Mont-
real City and District Savings Bank and the La Caisse
d'Economie de Quebec are not unusual, and are what one
would expect to find at this time. Loans are lower, while
cash and securities are higher. The continued increase in
savings deposits indicates a certain amount of prosperity
in the respective communities. It is a significant fact that
the increase in savings deposits closely approaches that
shown in the chartered banks' statement on another page of
this issue.
Over a period of one year both of these French-Canadian
banking institutions have made good progress, as the figures
below will illustrate. The large reduction in Dominion gov-
ernment demand deposits is the result of the gradual with-
drawal of the funds deposited following the Victory loan in
the fall of 1919, but this decrease has been more than offset
by the substantial increase in savings.
Montreal City and District Savings Bank
Nov., 1920. Dec, 1919.
Dec, 1920
Dom. gov. dem. dep. . . $ 94,243 $ 94,243
Other dem. deposits . . 45,448,298 44,739,517
Total liabilities 46,090,745 45,350,280
Gov. and other sec 12,476,563 12,254,009
Cash 8,173,364 7,902,411
Can. municipal sec 15,508,218 15,091,333
Loans on bank stocks . . 837,110 775,623
Loans on other sec. . . . 9,314,280 9,463,117
Total assets 49,262,765 48,516,403
Caisse d'Economie de Quebec
Dec, 1920. Nov., 1920.
Dom. gov. dem. dep
Other dem. deposits . . $10,579,595 $10,478,404
Total liabilities 11,635,858 11,410,479
Gov. and other sec. .. . 1,678,521 1,679,093
Cash 1,574,147 1,386,887
Can. municipal sec. . . 4,067,583 4,070,489
Loans on bank stocks. 302,825 301,230
Loans on other sec. .. . 3,181,597 3,224,999
Total assets 13.532,368 13,306,989
$ 1,354,920
40,213,589
42,026,059
10,719,634
6,782,375
15,400,944
804,508
8,155,710
45,154,851
Dec, 1919.
$ 422,880
10,196,410
11,304,730
1,695,656
1,707,758-
4,083,687
272,094
3,003,488
13,114,931
INTRICACIES OF EXCHANGE RATES
InvestigR'tion by detectives and banks has revealed that
a Rochester broker has been making substantial profits out
of the fact that a discount is charged on Canadian currency
but not on Canadian silver. The detectives learned that sev-
eral times a week for the last severaJ months with $500 in
United States currency, he purchased $560 of Cana-
dian, which in Canada he changed into 10 cent pieces and de-
posited in Rochester, N.Y., at full value.
In an effort to break up the operations of a gang of
money exchangers, Cleveland bankers, acting through the
Cleveland Clearing- House, on January 21, voted to accept
Canadis.n money only at a discount of 20 per cent. This
action was tE'ken after a committee of bankers earlier in the
day had agreed to discount silver and paper money alike.
Organized gangs have been flooding northern cities of the
country with Canadian coin and have been making profits
of thousands of dollars which United States ba.nks have lost,
according to J, C. Henderson, manager of the Commercial
Division, of the Foreign Department of the Guai-dian Sav-
ings and Trust Co., one of the largest banks in the city.
The administrator of lunatic estates in Saskatchewan
has 350 estates under administration involving assets totalling
$697,294. The government advances funds required to pay
pressing debts against these estates at 5V2 per cent, whenever
security is available.
Febi-uary 4, 1921
THE MONETARY TIMES
25
BRITISH COLUMBIA FIRE AGENTS' CONFERENCE
Licensing of Agents. Fire Prevention and Organization of
Associations are Main Subjects Discussed — Difficulties
in Regulating Appointments
(Special to The Monetary Times.)
Vancouver, January 22, 1921.
THEi first annual conference of the fire insurance agents
of British Columbia took place in Vancouver on January
20th and 21st. Some 200 delegates were present including
the more prominent insurance men from every part of the
province.
Geo. L. Schetky occupied the chair. Mr. Schetky stated
in his opening remarks that their object in getting together
was to, if possible, agree upon a uniform constitution and
by-laws for all local insurance agents' associations in British
Columbia. He stated there were 900 men in British Columbia
who were fire insurance agents, and such a large body of
men, could, if they were so disposed do a great deal to im-
prove the conditions under which they carried on their busi-
ness.
A series of papers followed. Frank R. Rounsefell gave
an interesting talk on the early history of fire insurance in
British Columbia from the old "Cut rate" days when there
was no Fire Board, when it was not so much a matter of
equitable rates as making the rate a little lower than your
competetor had quoted. Mr. Rounsefell divides the honors
with Walter E. Graveley of being the agent longest engaged
in the insurance business and still engaged in it, of any
of the agents in Vancouver. It is possible, however, their re-
cords may be beaten in Victoria or New Westminster, cities
which were in existence before Vancouver.
Licensing of .\Kents
Mr. Rounsefell was followed by H. G. Garrett, Superin-
tendent of Insurance for the province, who read a paper
intitled "Agents Service." This paper was so important ow-
ing to the subject treated and the authoritative source of the
information contained therein, that a committee was ap-
pointed to report on its chief features. On the question of
licensing agents (not done in this province) the committee
Are You a Trustee?
I
F so, you may be interested to learn that
this Corporation also acts asagent for per-
sonal Trustees, taking charge of the
administration of estates for them and
performs such duties as keeping estate
funds fully employed in high-class invest-
ments, collection of revenue, cutting cou-
pons, management of real estate, rendering
statements and remitting balances to bene-
ficiaries at regular intervals, keeping secur-
ties in Safety Deposit Vaults, etc. Many
Trustees find this the most satisfactory way
for them to administer an estate — by turn-
ing it over to us as their agent and at the
same time retaining the responsibility im-
posed on them under the Will.
Write or call for our rates on this class
of business.
THE
TorotstoGeaeralTrusts
CORPORATIOiS
Head Office
Branches : Ottawa Winnipeg
TORONTO
Saskatoon Vancoi
advised that, if the agents of British Columbia desired to be
licensed, measures be taken in the proper quarters to ap-
proach the government. In regard to the question of "Fire
Prevention" the committee recommended that the government
be informed of the good work done, and b?ing done by their
British Columbia Fire Inshranck Agents in ( onvkntiox at Vancouver, B.C.
THE MONETARY TIMES
Volume 6ti.
fire prevention officer, Mr. Thomas, and they further re-
commended that the British Columbia Fire Underwriters'
Association confer with Mr. Thomas for the purpose of
formulating: such plans as may result in further extending
this principle, and to obtain such further legislation as may
be deemed necessary to assist Mr. Thomas in extending the
activities of his office.
Agents' Associations
The constitution and by-laws of the Vancouver Fire
Agents' Association was then considered clause by clause, and
as amended, passed in their entirety as the constitution and
by-laws which shall govern all fire agents' associations in
British Columbia. In the discussion of these by-laws and
the various clauses of the constiutions many alleged imper-
fections in the present system as regards inter-relations be-
tween agents, were considered, and the constitution was
amended in the direction of putting the insurance business
on a better and more equalable basis for all concerned,
throughout the province.
Following the passage of the constitution and by-laws
H. H. Stevens delivered a very able and eloquent address
on "Thoughts on the present and future economic conditions
of Canada," in which he spoke of the apalling thought that
little if anything was being done in the direction of reforest-
ing in British Columbia. While vast wealth was being pro-
duced in the lumber, pulp and paper industry, little or nothing
was done to build up again the depleted forests which he
understood would only take 22 years if it was commenced
now. He spoke at length of Canada's vast resources all of
which should be conserved and the burden of taxation placed
on profits, not on development.
Fire Prevention and Co-operation
J. J. Bar.field's paper on, "Fire Prevention, Future Legis-
lations and Commissions," resulted in a long discussion, and
a resolution framed by a committee appointed for the pur-
pose was unanimously passed, which will tend to foster a
better feeling among agents in British Columbia, and prob-
ably result in future legislation to the advantage of the
agents and companies.
Following Mr. ganfield, R. W. Douglas read a paper on
"Co-operation," which was followed by one on the "Services
of the British Columbia Fire Underwriters' Association,"
by J. L. Noble, secretary, British Columbia Fire Under-
writers' Association. The final paper was one on "Industrial
Insurance," by A. W. McLeod, of New Westminster. Be-
tween the papers several addresses were delivered on interest-
ing insurance topics.
The banquet in the evening at Hotel Vancouver was at-
tended by some 150 delegates, the speaker of the evening
being Major Coart, president of the Fire Insurance Agents'
Conference of the State of Washington, Major Coart, who
is also past vice-president of the Insurance Federation of
Washington State, spoke largely of the good work which
could be accomplished by the co-operation of these two bodies.
He stated that it was largely the case that companies desired
to assist their agents in every possible way and in most cases
they saw eye to eye with the agent, so that while the insur-
ance federations were largely supported financially by the
companies, and the agents were obliged to conduct their as-
sociation affairs without monetary help from the companies,
still the two associations had much in common and the fed-
erations organized in the main, to strive to prevent unfair
insurance legislation, were ever ready to help in any legisla-
tion work desired by the agents and not opposed to the in-
terests of the companies. It was up to the agents who were
always on the firing line to win the victories for good legis-
lation, fair treatment in their relations to one another and
between themselves and the companies.
At the conclusion of the conference Mr. Schetky was
elected to name a committee to carry on the work of the con-
ference between sessions, Mr. A. -E. Goodman being named as
seerctai-y of the British Columbia conference committee.
FIUE INSURANCE IN C.VNAOA IN 1920*
Losses Continue Heavy, While Business Depression Intro-
duces New Complications — Ontario's Proposal to Limit
Agents' Commissions Was Outsanding Event
By Cecil S. Wainwbight
Secretary, Western Assurance Co., Toronto
IN Canada in the early months of the year, while there was
some uncertainty as to what the immediate future might
bring forth, matters on the whole ran smoothly in the fire in-
surance world. Companies and agents were still pointing
out to the assured the advisability of a proper amount of in-
surance being carried in view of the then prevailing high
values so that in the event of a loss they would be protected
in a fair and equitable manner, and some companies were
making special drives for "Use and Occupancy" insurance.
As the months went by, however, clouds appeared upon the
business horizon and there ensued a falling off in the de-
mand for certain commodities, a consequent reduction in
prices, a state of over-production by manufacturers and of
over-stocking by retailers and wholesalers and a general con-
traction'of credit by the banks. This was accompanied by
that increase in moral hazard which appears almost auto-
matically to accompany such conditions; the temptation to
"sell" to fire companies for the insurance money seeming
almost invariably to develop in times of falling values and
financial depression. The admonitions to the public to see
that they were carrying proper and adequate insurance were
discontinued and the pushing of the "Use and Occupancy"
branch of the business was dropped.
Adjustments
Then there arose to worry underwriters the difficulty of
the adjustments of "Use and Occupancy" claims (and this
entirely outside any question of moral hazard) as such
claims would be sure to present many complications owing to
the rapidly changing financial conditions above referred to.
Indeed, this worry extended to adjustments generally, as in
all likelihood there would be many instances of over-insur-
ance of property in cases where the insurances were based
upon the previous excessively high prices of commodities.
A further difficulty which arose out of the unfavorable
business conditions was in connection with the collection of
agents' balances. This was due to the fact that a good many
agents were carrying the premiums owing to them by their
customers who were unable to liquidate their indebtedness to
the agents.
In addition to these troubles, heavy cancellations took
place all over the country to such an extent as to affect
seriously some premium incomes.
Summing up the business of the year as a whole, how-
ever, it is probable that in view of the favorable experi-
ence of the companies during the early months of the year,
the loss ratio for companies generally for the twelve months
will be a moderate one, but this will likely be offset to some
extent by heavy expense ratios due to the continued increase
in taxes, travelling expenses, salaries, etc.
Commissions in Ontario
By far the most important event of the year in the fire
insurance business was the action taken in the closing month
by the superintendent of insurance of the province of On-
tario in notifying- companies and agents of his intention to
recommend to the provincial legislature that no commission
in excess of 15 per cent, shall be paid to any insurance agent
in Ontario. It is no exaggeration to say that this is the
most important incident that has taken place for many years
past in connection vv-ith the business of fire insurance in
'From the Now York Journal of Commerce.
(Continued on page ^o)
February 4, 1921 THE MONETARY TIMES
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27
FIFTYSIXTH ANNUAL STATEMENT
F. R. BIGELOW, President
December 31al, 1920
A. W. PERRY. Secretary
St. Paul Fire and Marine Insurance Co.
ST. PAUL. MINNESOTA
Assets.
Bonds (at Market Value, Dec. 31st) $11,823,540.72
Stocks (at Market Value, Dec. 31st) 242,950.00
Home Office Building 402,599.64
Mortgage and Collateral Loans . . 2,841,422.38
Cash and Bank Deposits 1,729,423.23
Agent's Balances 1.811,242.83
Due from Re-insurance Co.'s Notes,
etc 242,258.37
Accrued Interest 150,995.76
$19,244,432.93
Liabilities.
Reserve for Unearned Premiums .
Unadjusted Losses
Reserve for T&xes
Reserve for Contingencies
Reserve for Unpaid Bills, etc. . . .
Capital Stock $2,000,000.00
Net Surplus 5,092,525.61
,334,899.49
,794,507.83
383,000.00
567,000.00
72,500.00
7,092,525.61
COMPARISONS WITH LAST YEAR
1919.
Net Premiums Written $12,620,459.12
Unearned Premiums
Capital Stock
Assets
7,565,432.23
1,000.000.00
16,660.220.17
5,444,331.99
1920.
$13,978,046.84
9,334.899.49
2.000.000.00
19.244.482.93
5,092,525.61
$19,244,432.93
Increase.
.$1,357,587.72
1,769.467.26
1,000,000.00
2,584,262.46
Decrease.
351,806.38
Net Surplus
I The Securities are valued at actual Market Values December 31st, 1920, a depreciation of $739,452.81 ■
I has been taken ca-re of. =
I The Capital Stock was increased during 1920. Stockholders paid in $1,000,000 cash. §
I 386 I
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THE
Manufacturers Life Insurance Company
HEAD OFFICE, TORONTO, CANADA
1920
Salient Features of most Outstanding Year in Company's History
Increase over 1919
Insurance in Force
Insurance Issued -
Assets . - - -
Policy and Annuity Reserves
Income - - - - •
$178,757,911
52,268,849
33,220,910
28,121,625
8,630,545
$39,371,180
12,097,629
3,865,280
3,450,800
1,545,410
The Company's investments during 1920 consisted of Government
Bonds and First Mortgages on improved property.
The income from interest and dividends amounted to $1,699,978.
The average rate of interest earned was 6.62%.
As in previous years, our mortahty was again extremely favorable.
The total mortality was only fifty-one per cent, of the expected.
Write for copy of Annaal Report
ifflnniDiiiiniiiiiiiiiiMiiiiiiiiiiiiiiiiiiMniinniiiiiiiiiiiPiiifiniiiiiii
THE MONETARY TIMES
Volume 6B
Canada Permanent Mortgage Corporation
ANNUAL MEETING
The Annual Meeting of Shareholders of the Canada
Permanent Mortgage Corporation was held at the Head
Office of the Corporation, Toronto Street, Toronto, on Fri-
day, January 28th, at twelve o'clock noon.
The chair having been talcen by the President, Mr. W.
G. Goodeiham, the Assistant General Manager, Mr. George
H. Smith, WS'S appointed Secretary of the meeting, and read
the Report of the Directors for the year 1920, and the State-
ment of Assets and Liabilities, which are as follows: —
REPORT OF THE DIRECTORS
The Directors have much satisfaction in submitting to
the Shareholders the Annual Statement of the business of
the Corporation for the year 1920. It has been duly certified
by the Auditors.
The net profits for the year, after deducting
interest on borrowed capitarl, expenses of
management, all charges and losses, to-
gether with War Revenue, Dominion In-
come and other Taxes, amounted to $ 8.54,277.30
The balance at the credit of Profit and Loss at
the beginning of the year was 150,49.3.28
Making ava.ilable for distribution $1,004,770.58
This sum has been appropriated as follows: —
Four quarterly dividends of Two and One-half
per cent, each on the Capital Stock (iOO,000.00
Transferred to Reserve Fund 250,000.00
Balance carried forward at credit of Profit
and Loss 154,770.58
$1,004,770.58
The Reserve Fund now p.'mounts to Six Million Dollars
and is equal to the Paid-up Capital.
All which is respectfully submitted.
W. G. GOODERHAM,
Toronto, January 12th, 1921. President.
FINANCIAL STATEMENT, 31st December, 1920
ASSETS
Office Premises, Toronto, Winnipeg,
Vancouver, Saint John, Ed-
monton, Regina, Woodstock,
Halifax $ 732,134.59
Real Estate held for sale 451,333.74
Mortgages on Real Estate — Prin-
cipal, $27,337,655.75; Interest,
$726,613.51 28,064,269.26
Loans on Stocks, Bonds, etc., Loans
on the Corporation's Stock,
$132,037.91; Loans on other
securities, $164,585.88 296,623.79
United Kingdom, Dominion of
Canada, and Provinces of
Canada securities 383,666.66
Canadian Municipa-lities, School
Districts and Rural Telephone
Debentures 204,057.40
Other Bonds, Debentures and De-
benture Stocks 416,620.60
Stocks — Canadian Pacific Railway
Company, $285,000.00; The
Canada' Permanent Trust
Company, $978,000.00 1,263.000.00
Cash in Chartered Banks and on
Hand 1,253,848.11
$33,065,554.15
$20,760,783.57
LIABILITIES
To the Public:
Debenture Stock and Accrued In-
terest (£87,846 9s. 7d.) $ 427,519.54
Debentures--Sterling— and Accrued
Interest (£1,981,346 Is. 2d.) . . 9,642,550.80
Debentures — Currency — and Ac-
crued Interest 4,553,765.21
Deposits and Accrued Interest . . 6,129,483.21
Sundry Accounts 7,464.81
To the Sharekolders:
Capital Stock subscribed $6,000,000
Capital fully paid $ 6,000,000.00
Reserve Fund 6,000,000.00
Dividend payable 3rd J&nuary, 1921 150,000.00
Balance carried forward at Credit
of Profit and Loss Account . . 154,770.58
$12,304,770.58
$33,065,554.15
R. S. HUDSON,
Vice-President and Joint General Manager.
JOHN MASSEY,
Joint General Manager.
We beg to report that we have audited the books of the
Can&da Permanent Mortgage Corporation for the year end-
ing 31st December, 1920, and have verified the cash, bank
balances and securities of the Corporation. That we have
examined the foregoing statement and that it agrees with the
books of the Corporation.
That E'fter due consideration we have formed an inde-
pendent opinion as to the position of the Corporation.
That after our independent opinion was formed, and ac-
cording to the best of our information and the explanations
given us, we certify that in our opinion the statement sets
forth fairly and truly the state of the affairs of the Corpora-
tion.
That all transactions of the Corporation that have come
within our notice have been within the powers of the Cor-
poration.
A. E. OSLER.
HENRY BARBER, .-luditors.
Chartered Accountants, '
Toronto, January 11th, 1921.
The President, Mr. W. G. Gooderham, then addressed
the meeting as follows: —
The Report of the year's operations and the Statement
of Assets and Liabilities, as at the close of the year, which
have been in your hands for the past fortnight, and which
have just been read, are of such an eminently satisfactory
character that I believe you will agree with me that the
Shareholders are to be congratulated thereon.
You will have noticed that the Assets, and the Liabili-
ties to the public, are itemized in a diflferent order from that
which has previously been followed. While we are of the
opinion that the sequence in which the various items had
appeared in our previous statements is, on the whole, a more
satisfactory presentation of the Corporation's condition, we
have followed the form prescribed by the Ontario Registrar
of Loan Corporations.
A comparison of the Statement with that of 31st Decem-
ber, 1919, will show that the amount of our mortgages on
real estate has increased by nearly two million dollars, and
now exceeds twenty-eight million dollars. These mortgages
number 14,819, an average of less than $1,900 each.
It has always been the policy of the Directors to invest
the funds with which they have been entrusted as la-rgely as
possible on the security of mortgages on improved and pro-
ductive real estate. The preference is given to loans on mod-
February 4, 1921
THE MONETARY TIMES
29
erate sums on farm properties and on dwellings of not too
expensive a class in our leading Canadian cities — two classes
of property which are the most readily saleable under all
circumstances. We have never lost sight of the fact that it
was to supply the requirements of owners of real estate,
and more particularly the farm and home owners, that this
and other Land Mortgage Companies were founded. During
the p?.'St year the demand for this, as well as other classes
of loans, has been greatly in excess of the ability of lending
institutions to meet. The large increase of nearly two mil-
lion dollars in the amount of our mortgages affords evidence
that we have done all in our power to meet the situation and
that, as far as it is humanly possible, we have performed
the service to the community for which our Company was
created.
Like other Loan Companies, we have powers of invest-
ment in Bonds, Debentures r.^nd similar securities. At the
close of 1919, chiefly owing to our having considered it neces-
sary in the national and patriotic interest to subscribe as
largely as possible to various War Loans, we became the
owners of a larger amount of these securities than we had
previously considered it advisa>ble to hold. In addition to
disposing of a considerable portion of the Bonds we held, we
endeavoured, by again increasing the rate offered to Ster-
ling Debenture holders, to retain as much as possible of the
British money which became pajTible during the year. In
this we were fairly successful and, in view of the very large
aggregate of Sterling Debentuies which matured in 1920,
the total amount outstanding at the end of the year does not
show as great a diminution a.s might have been expected.
Had we followed the policy of paying off the Debentures
which became due, or a greater portion of them, the favor-
able rates of excha^nge which prevailed would have enabled
us to have very materially added to the profits for the year.
To retain the money in Canada, we had also to compete with
the unprecedented yields which the British investor has been
able to obtain on the choicest securities at home. Bonds of
the leading British cities, as well I'.'S the obligations of the
British Government, were being pressed upon him to yield
better than six per cent. European Countries, which in 1919
borrowed in the United States at five and one-half per cent.,
had, in 1920, to pay eight per cent. The fact that in the face
of this competition we renewed and replaced such a large
proportion of our Debentures affords the best evidence of the
reputation of the Corporation in Scotland, and of the very
high place our Debentures hold in the estimation of investors
and their financial advisers.
In renewing instead of paying off these Debentures,
your Directors and the Executive have been actuivted by a
desire to provide as fully as possible for the requirements
of our farmers and other owners of real estate. They are
also satislied that ultimately it will prove to be in the best
interests of the Corporation to maintain the valuable asso-
ciations which have been built up in the past forty-five
years, and which we so greatly appreciate. The abnormal
conditions which have existed for some time must sooner or
later give place to those which prevailed for so ma^ny years,
and leading economists do not hesitate to express the opinion
that this process will be much more rapid than the vast
majority anticipate. By keeping the channels open in the
meantime, we may confidently expect a renewal of the flow
of British money to Canada and which will be made available
through investment in this Corporation's Debentures for
loaning on Canadian real estate.
While on this subject, I am very sorry to inform you
of the sudden death last November of one of our valued
i-epresentatives in Scotland, Mr. David Cowan, of the firm
of Bell, Cowan & Co., Edinburgh. As our Chief Agents say
in their letter a.bout him, he was a much respected friend and
colleague and he will be very much missed. It has been
said of him that he was personally the first to send money
from Scotland on Canadian Loan Company Debentures.
It is a source of much gratification that, notwithstanding
the number £.nd amount of other securities which were
offered to the Canadian public at very attractive rates, our
Debentures hold such a high place in the esteem of our
people that the amount payable in Canada increased during
1920 by more than $4.31,000.
While the cost of our borrowed money ha« necessarily
increased, the rates of interest obtainable on mortgage loans
have been attractive and afford a fair margin of profit. I
shall not venture to predict how long the present rates may
prevail. There is every indicE-tion that the demand is likely
to at least equal the available supply of money for loaning
purposes for some time to come. If there should be a lessen-
ed demand and a consequent reduction of rates of interest,
it will be due to such altered conditions as will enable us to
obtain supplies of capital on more favorable terms. In the
meantime, the interest paid by mortgagors is not more than
commensurate with the increased cost of the money loaned
and does not afford as great a ratio of profit as when it was
possible to make loa^ns at much lesser rates.
The real estate held for sale includes not only the pro-
perties acquired by foreclosure, but also all which have fallen
into the possession of the Corporation under Power of Sale
or in any other way. A Corporation which transacts a loan-
ing business in every Province of the Dominion except Que-
bec, End of the volume shown in our Statement, will always
have a percentage of its customers who, for some unavoid-
able reason, fail to meet their obligations. The amount re-
presented by this item in our Assets is about 1.36 per cent,
of the total. There is no doubt that these properties will
realize at least the amount at which they are held E^nd in
the meantime they are producing a yearly rental equal to
eleven per cent.
The Corporation's investment in The Canada Permanent
Trust Company is proving satisfactory. That Company's
business and the profits therefrom are increasing. The Cor-
poration's Shareholders can further increase the business of
the Trust Company and the profitable nature of the Corpora-
tion's investment in it, by employing it whenever it can be
of service in any of the various capacities in which it is
a-uthorized to act and by recommending it to their friends
and any who may consult them on such subjects.
For the eighth consecutive year we have paid the Share-
holders dividends at the rate of ten per cent, per annum and
for the fifteenth year in succession we have added a quarter
of a million dollars to the Reserve Fund. In addition, the
balance at the credit of Profit and Loss shows a small in-
crease. The Reserve P'und is now equal to the Paid-up
Capital of Six Million Dollars. I stated last year that upon
reE^ching this objective, which we have had in view for many
years, the Directors may feel justified in thereafter making
smaller additions to the Rest. We believe we are now war-
ranted in informing the Shareholders that, if nothing unfore-
seen occurs between now and the date at which the next
quarterly dividend be declared, it is the intention of the Board
that it shall be three per cent, for the quarter, or at the rate
of twelve per cent, per annum. This will be a return of six
per cent, on the Shareholders' combined Capital and Reserve
Fund, amounting together to Twelve Million Dollars.
I think it is unnecessary to detain you with any further
remarks. I have followed my usual practice and confined my
observations to the business of the Corporation. There is no
institution with which I am associated in which I take a more
vital personal interest nor of which I am prouder. I know
that the pride I feel in its success and in the premier position
it occupies is more than fully justified. I, therefore, have
much pleasure in moving, seconded by the Vice-President,
that the Report of the Directors be received and adopted and,
together with the Financial Statement, be printed and a copy
sent to each Shareholder.
The motion was seconded by the Vice-President, Mr. R.
S. Hudson, who said: —
As the President has given you a clear idea of the Com-
pany's business for last year, it is hardly necessary for me
to niE'ke many remarks. I will say this, that another year
has passed, and we have added Two Hundred and Fifty-four
thousand odd dollars to our Profits, over and above the divi-
dend. The average addition to Reserve and Profit and Loss
during fifteen years has been $260,652. The record has been
of £• character to make every shareholder thoroughly satisfied
with his investment, and when we take into account that, as
stated by me last year, these Assets are realizable and are
only incorporated in the Statement after the most careful
revision, there is an added assurance.
Since our last Annual Statement, farm lands have some-
what increased in value and I have no doubt the facilities we
have afforded the farming community have assisted in this
result.
HEd it been that we had no other idea during the year
than that of temporarily making a good showing, we might
have paid off more of our Sterling Debentures, but by not
doing so we were enabled to increase our loans to farmers
and householders by nearly .$2,000,000.
There are two important facts to which I might refer.
The first is that over 84 per cent, of our total investments
&re in first mortgages, chiefly on farm properties and dwell-
30
THE MONETARY TIMES
Volume 66.
ings of moderate size and value. The second, and it is a sig-
nificant one, is that we collected on mortgages alone, during
1920, $5,991,924 in cash, only $137,558 less than our total
deposits, all of which has been reloaned, and we also col-
lected interest alone on other securities $233,288, lea-ving the
total amount collected during the year in actual cash $95,730
more than our total deposits, and this is not an unusual show-
ing for your Company.
It is with a great deal of satisfaction I bea^r testimony
to the loyal support and co-operation the members of the
different staffs have given Head Office, without which such
results as have been obtained might not have been secured.
With the foregoing remarks, I beg to second the Presi-
dent's motion that the Report, as read, be adopted.
The President's motion for the adoption of the Direc-
tors' Report was unanimously carried.
The retiring Directors were all unanimously re-elected
for the ensuing year, namely, Messrs. W. G. Gooderham, R.
S. Hudson, Col. Albert E. Gooderham, J. H. G. Hagarty, John
Campbell, S.S.C. (Edinburgh), John Massey, F. Gordon Os-
ier, E. R. C. Clarkson, William Mulock and George W. Allan,
K.C., M.P., of Winnipeg.
Messrs. Henry Barber and A. E. Osier, Chartered Ac-
countants, were re-appointed Auditors for the current year.
The Directors met after the adjournment of the Annual
Meeting, and re-elected Mr. W. G. Gooderham, Pi-esident, and
Mr. R. S. Hudson, Vice-President. 390
FIRE INSURANCE IN CANADA IN 1920
(Continued from page 26)
Canada and it would be hard to say how far-reaching the
effects of such a move might be. It came "as a bolt from
the blue" upon companies and agents alike. In his letters to
the companies and to the Ontario Agents' Association, the
superintendent drew attention to the fact that the companies
had done nothing in the direction of acting upon the sug-
gestion in the report of the Hon. Mr. Justice Masten (who
had been appointed by the Ontario government to look into
the question of rates, etc., and which report was published
in January, 1919) that the companies agree upon some
limitation of agents' commissions, otherwise that the legisla-
tive assembly might take the matter in hand. As it is only
recently that copies of the superintendent's letters have been
published broadcast in the press, it is unnecessary to say any-
thing further now as to their contents except that the
superintendent said the objects he has in view in taking
the action outlined are: —
(a) A reduction of insurance rates to the assured.
(b) A reduction of the cost of acquisition of business
to the companies.
(c) Equal and fair remuneration for equal service to
agents in Ontario.
(d) Improved agency service to the public by competent
and trustworthy agents.
A largely attended conference took place before the close
of the year between the superintendent and the Canadian
managers of fire insurance companies (both tariff and non-
tariff) doing business in Ontario, at which the attorney-
general of the province was present on behalf of the govern-
ment, and made an address in which he said that the govern-
ment had given very serious consideration to the suggestions
in Mr. Justice Masten's report and had reached the con-
clusion that its recommendations were reasonable and that
somethinsr ought to be done to carry them out. He said
said he was not unaware that there were conflicting interests
involved, and that the carrying out of these suggestions
might be distasteful to and against the interests of some of
those attending the conference. But he added that the public
interest and the public point of view must prevail. He said
it was the intention of the government to bring down a bill
in such form as might be considered wise after the repre-
sentations of the conference had been heard. This conference
between the superintendent and the managers was followed
by one between him and the agents. These meetings have
shown that the superintendent would welcome a settlement
by which the companies would themselves arrange for the
fixing of uniform commissions. It is easy to understand,
however, how difficult it would be for tariff and non-tariff
companies to come to an agreement on this question since
the non-tariff companies have no association of any kind,
and many of the provincial non-tariff companies are wedded
to a profit commission and have grave objections to discon-
tinuing their methods of remunerating agents. The superin-
tendent is now trying to arrange for an agreement as to
same plan of remuneration in excess of the flat 15 per cent,
commission suggested by him in the hope that this may
remove the hostile attitude of the agents and make the path
of the contemplated bill smoother. It looks, however, as if
the proposed legislation will be strongly opposed by the
agents and that the companies will take the stand that they
prefer to continue their existing commission arrangements
rather than have legislation enacted which would restrict
their individual efforts and methods of conducting business.
The outcome of this important and engrossing matter
virill, it is needless to say, be awaited with the keenest of
interest both by the agents and by the companies.
No Fire Brigade Strikes
During 1920 the country was fortunately free froW po-
lice, fire brigade and similar strikes which had been all too
frequent in 1919, although there was a strike of 250 em-
ployees of the Montreal waterworks system in the first month
of the year that caused grave anxiety. This, fortunately,
only lasted a day or two.
Two important meetings affecting fire insurance were
held during the year — one being the meeting of fire chiefs,
which was held in Toronto in June and which was attended
by fire chiefs from all over the United States and Canada.
At this gathering many suggestions were made with a view
to reducing the fire loss in Canada. The other was the meet-
ing of the insurance superintendents of the various pro-
vinces, which was held in Winnipeg in October,
and at which very important matters affecting the business
were discussed, among them being that of having uniform
policy conditions in every province, and which question is
now in gradual process of deliberation and adjustment.
Heavy Property Waste
Notwithstanding the activities of the various fire pre-
vention and other organizations which, during recent years,
have been taking an ever-increasing interest in the question
of fire prevention and loss reduction, the fire waste still in-
creases by leaps and bounds. It is estimated that the total
value of property destroyed Ln the Dominion of Canada dur-
ing 1920, will be no less than $27,000,000, as compared with
$23,000,000 for the 12 months of 1919; thus again leaving
Canada in the lead in so far as per capita property waste is
concerned.
In New Brunswick the legislature passed the Corpora-
tions Tax Act, by which the annual tax upon fire companies'
premiums was doubled (from 1 to 2 per cent.).
British Columbia Boards
In British Columbia an important change took place
whereby the two associations (the "Mainland" at Vancouver
and the "Island" association at Victoria) were amalgamated
in the name of the "British Columbia Fire Underwriters'
Association," so that instead of there being two associations
with separate secretaries and officials, there is now only one,
thus saving a waste of time in meetings and a duplication of
work and officials. The new arrangement is reported to be
working satisfactorily.
The number of fire compa-nies licensed to do business
by the Dominion Insurance Superintendent still increases.
At the close of the year there was a total of 149 fire com-
panies licensed by the Dominion Insurance Superintendent,
as compared with 138 at the end of 1919. Competition, al-
ready too keen, must therefore become sharper, especially
if there is a reduction in the premium income of the com-
panies as a' whole, as would seem to be inevitable if the
prophecies of poorer business conditions in 1921 turn out to
be true.
February 4, 1921 THE MONETARY TIMES 31
aiiiiiiiniiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiu^
1870
THE MUTUAL LIFE
Assurance Company of Canada
WATERLOO , ONTARIO
FINANCIAL STATEMENT
FOR YEAR ENDED DECEMBER 3 1st, 1920
1921
CASH ACCOUNT
INCOME.
Income Net Ledger Assets:
31st December, 1919 $36,152,382.03
Premiums (Net) 7,685,792.13
Interest, Rents, Etc 2,243,186.64
.\mounts left on deposit with Company 133,214.58
Miscellaneous Income 61,978.10
$46,276,553.48
DISBURSEMENTS.
Death and Disability Claims
Matured Endowments
Surrendered Policies
Surplus
Annuities
Supplies
Amounts on Deposit Withdrawn...
Premium Reductions, Quinquennial.
Expenses, Taxes, Etc
Balance Net Ledger Assets:
31st December, 1920 .
$ 1,215,136.89
748,844.17
456,744.12
1,062,558.00
9,547.04
26,889.50
54,723.24
93,078.98
$ 3,667,521.94
2,070,738.43
40,538,293.11
$46,276,553.48
BALANCE
ASSETS.
Mortgages $14,934,368.52
Debentures and Bonds 19,394,571.03
Loans on Policies 5,335.268.01
Real Estate 1,059,987.73
Premium Obligations 25,713.27
Cash in Banks 44,792.51
Cash at Head Office 3,839.78
Due and Deferred Premiums 931,003.08
Accrued Interest, Etc 1,117,733.32
$42,847,277.25
SHEET
LIABILITIES.
Reserve, S^^ro and S% basis $35,160,546.00
Special Investment Reserve 346,254.29
Reserve for Unreported Death Claims 60,000.00
Surrender Values claimable on lapsed
Policies 2,141.95
Death Claims unadjusted 211,028.00
Matured Endowments, unadjusted . . . 13,024.00
Dividends due Policyholders 91,222.72
Reductions on Outstanding Premiums 13,021.01
Dividends allotted to Deferred Divi-
dend Policies issued since January
1, 1911 475,484.32
Dividends allotted to Accumulative
Dividend Policies other than De-
ferred Dividend Policies 982,380.68
Due on account of Office Expenses and
Medical Fees 37,832.72
Taxes and Rents accrued 92,751.31
Premiums and Interest paid in ad-
vance 82,662.01
Credit Ledger Balances 260,247.74
Surplus, 31st December, 1920 5,018,680.50
$42,847,277.25
.Audited and found correct.
J. M. SCULLY, F.C.A., Auditor. *
Waterloo, January 21st, 1921.
COMPARATIVE STATEMENT
CHAS. RUBY,
General Manager.
1919.
1920.
Increase.
S 8.583,404 '
38.020.949
40.625.656
1,302,801
4.540.5.36
170,706.305
SIO.124.171
42,817.277
47.008.024
1,657.104
5,018,680
206,627,728
$ 1,540,767
4,826,328
6,.382,368
.354, .303
478.144
35,921,423
N'ew Assurances
.Surplus Earned
Total Surplus Fund
Assurances in Force ....
392
iniiiniMiiiiiiiiiiiiiiiMiiiiiiiHMiiiiiiiiiiiiiiiiiiHia
32
THE MONETARY TIMES
Volume 66.
Price of Silver Fell Rapidly in 1920
Drop 01 Thirty-One Cents Per Ounce Recorded in New Yorii and of Twenty-
Three Pence in London — Estimated Increase in Production Last Year but
Canadian Output Has Fallen Oflf — Demand for Currency and Industrial Purposes
SILVER and the price of silver are of great importance to
Canada, as silver coins are the chief subsidiary cur-
rency used. This is illustrated by the fact that the great
increase in the value of the metal last year made it neces-
sary for the govei'nment to reduce the silver content in the
coins. On the production side the price of silver also affects
this country, as our annual output is around $20,000,000.
The vagaries in the price fluctuations of silver during the
past five years have, in fact, caused great disturbance, both
in the mining industry and in currency. The Royal Bank of
Canada, in its November letter, points out that during this
period silver quotations have fluctuated more than 100 per
cent, in London and 70 per cent, in New York. The high
and low prices in these principal markets, by weeks during
the year 1920, are shown in the accompanying table, com-
piled by The Monetary Times: —
London and New York Silver Prices — Jan. to Dec, 1920
Foreign in New York. London. New York'.
Week ending High. Low. High. Low. High. Low.
January 2 7614 TS'/g 132 Vi 130H
9 ISV' 76% 134 130V.
16 78% 76% 13314 130
23 79% 77% 1321/2 129Vi
30 85 80% 135 132y2
February 6 88% 83 134i,i 132
13 8914 84% 134 132
20 84% 82 131 130
27 82% 82 130 129
March 5 84 77% 132 129%
12 78% 69% 131 117
19 70% 65% 124 117
26 81% 71 133 123%
April 2 72% 71% 1261/2 126
9 72 69% 127 123
16 69 68V> ■ 118 117%
23 691/. 681/. 118 116%
30 69% 64i/o 118 lllVi
May 7 6714 60 UOl/o 102%
14 61% 58% 104% 99%
21 581/. 58 99% 99%
28 59% 57% 102% 100
June 4 57% 66% 99% 98%
11 56% 45% 96% 81
18 50% 44 99V2 80
25 93 90 521/. 5014 991.:, 99'/,
July 2 93 89% 53 501'. 99i<. 99%
9 94% 89% 54 51% 99% 99%
16 93% 90% 63% 52% 99% 99%
23 94 88% 56% 62 99% 99%
30 95 91% 66% 541/. 99% 99%
August 6 95% '91% 69% 64% 99% 99%
13 96 94% ' 69% 68% 99% 99%
20 101% 95% 63% 59 101% 99%
27 101% 96 63% 60% 101% 99%
September 3 97% OlVi 60% 57% 99% 99%
10 94% 93li 60% 58% 99% 99%
17 95 9314 60% 69% 99% 99%
24 94% 93 60 69% 991/. ggy^
October 1 93 911,:. soi.', 59 991/, 99%
8 91% 87 58% 56% 99% 99%
15 87 82% 561,4 53% 99% 99V.
22 81% 76% 53 50% 991/. 991^
29 80% 79% 52% 52 ■ 99% 99%
November 5 82% 80 54% 62% 99% 99%
12 82% 80% M% 53% 99% 99%
19 79% 76% 53% 49% 99% 99%
26 76 72 49 46% 99% 99%
December 3 71 68% 49% 43% 99% 99%
10 69 59% 44% 38% 99% 99%
17 66 61% 42% 41% 99% 99%
24 65% 62 42 40 99% 99%
31 66% 64% 43 40% 99% 99ii.
•Domestic.
The following table shows the production of silver by
principal countries for recent years: —
1913 (pre-war year)
1914
1915
1916
1917
1918
1919
lO"" fprobable output)
United
exico. States. Ca
(Amounts in mi
ntries. Total.
).
232
176
The main feature of the table is the remarkable decrease
in production during the war years, a decrease due for some
time to the failure of Mexican supplies. This was caused
by internal political conditions and not by non-productivity
of the mines. More important still from the Canadian
point of view is the fall in Canadian production, the number
of ounces mined in 1919 being less than half the 1913 figure.
Production in British Columbia has continued steady at
from three to three and a half million ounces. The Cobalt
field, however, is being exhausted, and, unless fresh dis-
coveries are made, its days as a great silver mining centre
are numbered, more especially since the fall in the price of
silver has rendered the mining of low grade ore unprofitable.
In the United States, reduced production of copper, from
which a large proportion of their silver is obtained, has
brought down the 1919 output to fifty-five million ounces as
shown above.
Increased Currency Demand
Silver is in demand for subsidiary coinage purposes,
for use in China and India, both for monetary and non-
monetary or hoarding purposes, and for the industrial arts.
The use of silver as the material of both standard and sub-
sidiary coins has for many years been the principal factor
in the demand. That demand was greatly increased during
the war owing to the large amounts of coin that were used
by the soldiers of all the warring nations and to the wide
extension of war industries.
British India has long been considered a bottomless pit
for the precious metals. Silver is hoarded in enormous quan-
tities, both in the form of coin and as ornaments. It has
been estimated that, during the five war-years, India absoi'bed
approximately $400,000,000 of silver. Among the countries
still using a currency of silver, China is by far the most
important. During the last two years China has purchased
■ probably 120,000,000 ounces. A considerable factor in this
country's insistent demand for silver has been the distrust
among her people of the bank notes in circulation there.
Use in Industrial Arts
The use of silver in the industrial arts has been steadily
increasing. The era of cheap silver resulted in the develop-
ment of many new uses which persist. Although it has been
impossible to estimate with any degree of accuracy what
is the normal annual consumption of silver in industry,
60,000,000 to 75,000,000 fine ounces may be stated to be the
average consumption. The moving picture industry is by
far the largest single consumer; the amount of silver nitrate
it requires has been steadily increasing during the past
decade.
The diminished supply and markedly increased dema.
have resulted in strong fluctuations in the price of silver.
In midsummer of 1915 the average monthly price of
silver fell to 48i/2 cents per fine ounce, which is the lowest
point it has touched since definite records were established.
Thereafter the price rose gradually to about $1 per fine
ounce in May, 1918, and maintained that level during a year
of United States governmental regulation. In May, 1919, a
rapid advance began which carried the price to the record
high point of $1..37l2 in November, 1919. The average
monthly price in January of the present year was the highest
ever recorded, but in March a sharp turn downward oc-
curred, and silver fell to 80 cents on June 15th. Thereafter
the price rose in July and August until a figure over $1
was reached on Augxist 20th. Silver since then has been
weak, and the last quotation available in October was 52%d.
in London and 80% cents for foreign silver in New York.
(Continued on page 36)
February 4, 1921
THE MONETARY TIMES
33
THIRTY-SEVENTH ANNUAL REPORT
PORTAGE LA PRAIRIE FARMERS'
MUTUAL FIRE INSURANCE COMPANY
January 1st, 1920, to December 31st, 1920
OFFICERS: President, E. H. Muir ; Manager and Secretary. Slratton Whitaker ; Treasurer, A. H. Thorpe
Financial Statement for the Year Ending December 31st, 1920
Receipts.
Balance in Bank, Dec. 31, 1919
1920 Assessments
Prior Assessments
Cash Assessments
Interest on Deposits and Bonds
Refund on McFadden Loss . . . .
Reinsurance for Loss Claoms . . .
$ 46,605.29
177,633.81
13,619.36
16,372.25
4,617.17
124.75
3.466.05
$ 262,438.68
Expenditures.
Loss Claims $ 128,092.51
General Expenses
Refunds
Reinsurance
Treasurer's Bond and Insurance on
Building
Balance in Bank
62,659.21
340.35
6,668.15
126.50
64,551.96
$ 262,438.68
Assets.
Balance of Piemium Notes, Dec.
31, 1920
Cash in Bank
Dominion War Loan
Manitoba- Farm Loans
1920 Assessment Unpaid
Claim re Levine
Accrued Interest
Office Building, Site and P'urniture
Liabilities.
Reserve for Cash Premiums
Balance of Assets Over Liabilities
f 8,184.13
1,016,524.38
$1,024,708.51
SUMMARY OF 1 920 BUSINESS
Insurance Writlen During 1920 $27,186,910.00
Increase lor the Year 1920 $ll,.i97..564.00
Total Amount Business in Force $63,lo3.907.00
IV/irkM A D r- U I 1 17 17 ASSURANCE COMPANY
SUMMARY OF 1920 RECORD
(C'lnpared with Dominion Government 191fl FiK'ures) Increase
ASSURANCE— In force $25,564,980 *'''t^?'^'^i
New and Revived 8,171,239 761,02/
I'RE.MIUMS— Cash 777,510 174,497
■VSSETS 1,819,453 473,047
POLICY RESERVE :..:....■... ■. 1,691,225 434,846
AVERAGE NEW POLICY 2,406 288
Decrease
MORTALITY CLAIMS ^8,852 -^^A^t
Percentage of Expected 30% oo'/f >" 1919
INVESTED FUNDS— Bonds and Debentures, 54%; Cash, 3%; First Mortgages, 28%; Policy Loans, 13%; Real
Estate, 2'}', (Revenue bearing). • ,-. j- eior/
INTEREST— .A. verage rate, 7.60%; previous year, 7.42%; average rate earned by Life Companies, Canadian, b.ia/e;
.■\merican, 4.70% ; British, 4.22';;-.
SURPLUS — Increased S45,412. Expense ratio— further reduced.
COMPARATIVE GROWTH
Year New Assurance
1910— 4th $1,147,980 $ 3,009,746
1912— 6th 2.230,660 5.509,348
1914— 8th 2,301.007 7,427,697
191);_10th 2.947,353 9,007,464
1918— 12th 5,198,888 l.-).171,309
1920- 14th 8,171,239 25.564 980
OFFICERS AND DIRECTORS ,„ , „ . „^
President W. A. MATHESON. V'<^<^-P™"'<^«"',^ "^^ ^,;,u V'^^ u ^^i v
Director and General Manager Lake of the Woods Milling Co.. Vice-President Adam. Bros Whotoale feaddlery
Director Sterling Bank of Canada Managing Dirc.tor-.l. W. W. sTEWAKJ.
W. P. RILEY. President Western Grocers. Ltd.. Director Bank of Hamilton COL. H. A. MULLINS. Director U. S. Fidelity Co.
W. L. PARRISH. President Parrish and Heimbecker Grain Co. Director Royal Canadian Securities Co.
C. E. GORDON. Gordon. Ironside and Fares H. W. ECHLIN. President Echlin Mfg. Co. R. G. IRONSIDE, w holesale Stock
Secretary and Actuary— J. A. MACFARLANE. A.I. A. Assistant Actuary-C. R. BISSELL. A.A.S. Treasurer- G. J. TELFER
OUR MOTTO- SECURITY— SERVICE-SATISFACTION 389
THE MuTsETARY TIMES
The Toronto General Trusts Corporation
The thirty-ninth Annual General Meeting of the Share-
holders of The Toronto General Trusts Corporation was held
at the Head Office of the Corporation in Toronto on Wednes-
day, the 2nd day of February, 1921, at twelve o'clock noon.
The President of the Corporation, Hon. Featherston Osier,
K.C., D.C.L., presided, and Mr. W. G. Watson, Assistant
General Manager, acted as secretary of the meeting. Mr.
A. D. Langmuir, General Manager of the Corporation, sub-
mitted the Annual Report for the year ended December 31st,
1920, accompanied by the usual statements showing the re-
sults of the operations for the year.
THIRTY-NINTH ANNUAL REPORT
OF THE BOARD OF DIRECTORS
(being for the year ended 31st December, 1920)
To the Shareholders: —
Your Directors have pleasure in submitting the Thirty-
Ninth Annual Report of the Corporation, together with the
usual statements showing its operations for the year ended
the 31st December, 1920.
The gross profits for the year, after providing for all
ascertained or anticipated losses, amount to $820,269.88. The
administration expenses, including salaries, Directors' and
Auditors' fees, advertising, rent, taxes, etc., amount to $466,-
655.90, this, as you will observe, makes our net profits for the
year $353,713.98. To this amount must be added $265,529.02
brought forward on the 1st of January, 1920, together vnth
the premium of $171,395.89 received on account in connection
with the issue of $500,000 new stock of the Corporation,
making a total of $790,638.89, which has been dealt with by
your Directors as follows: —
To payment of four quarterly dividends
as follows: —
Nos. 95 and 96 at the rate of 10%
per annum $75,000.00
Nos. 97 and 98 at the rate of 12%
per annum 90,000.00
To payment to the shareholders of: —
One per cent, bonus on the 2nd
July, 1920 15,000.00
Interest on new stock 1,407.39
$181,407.39
To amount provided for 1920 Federal Income Tax
(payable in 1921) 25,000.00
To amount written off Corporation's Safe Deposit
Vaults at Toronto and Ottawa, and Office
Furniture Account at Vancouver 13,221.85
To amount written off Vancouver Branch Building 27,845.76
To amount transferred to Reserve Fund, includ-
ing $171,395.89 premium received on account
in respect of new issue of stock 250,000.00
To balance carried forward to credit of Profit and
Loss 293,163.89
The Assets and Liabilities Statement shows an increase
of assets over the preceding year of $12,639,292.67, making
the total volume of assets now in the hands of the Corpora-
tion $113,762,324.18.
It is with regret your Directors have to record the death
during the year of Mr. Thomas Long, an efficient and valued
member of the Board since 1898. The vacancy on the Board
has been filled by the appointment of Mr. Thomas Brad-
shaw, of Toronto, General Manager of the Massey-Harris
Company, Ltd.
All of which is respectfully submitted.
A. D. LANGMUIR, FEATHERSTON OSLER,
General Manager. President.
Toronto, January 18th, 1921.
AUDITORS' REPORT
$790,638.89
We, the undersigned, beg to report that we have made a
full examination of the books, accounts and vouchers of The
Toronto General Trusts Corporation to 31st December, 1920,
and find same to be correct and properly set forth in the
above statements of Profit and Loss and Assets and Liabili-
ties. We have examined, and find in order, all the mort-
gages, debentures, bonds and scrip of the Corporation, as
well as those negotiated for the Supreme Court of Ontario,
and Trusts, Estates and Agencies in the Corporation's hands,
and we have checked same with the mortgage and deben-
ture ledgers and registers. The Trust investments and funds
are kept separate from the Corporation's own securities and
funds, and all securities are so earmarked in the books of
the Corporation as to show the particular Estate, Trust or
Guaranteed Account to which they belong. The Banker's
Balances, after deducting outstanding cheques, agree with
the books of the Corporation. All our requirements as
Auditors have been complied with. We have also examined
the reports of the Auditors of the Winnipeg, Ottawa, Sas-
katoon and Vancouver Branches, and find that they agree
with the Head Office books.
After due consideration we have formed an independent
opinion as to the position of the Corporation. In our opinion
so formed, according to the best of our information, and the
explanations given to us, we certify the above statements set
forth fairly and truly the state of the affairs of the Cor-
poration, and are in accordance with its books. All trans-
actions for the Corporation that have come within our notice
have been within the powers of the Corporation.
R. F. SPENCE, F.C.A., "Can." \ . ,.^
_ I Auditors.
JAMES HARDY, F.C.A., I
Toronto, January 18th, 1921.
The meeting was then addressed by the President and
General Manager.
February 4, 1921
THE MONETARY TIMES
35
ASSETS AND LIABILITIES STATEMENT
For the Year Ended 31st December, 1920
ASSETS.
Capital Account —
Office Premises $ 825;
Real Estate held for sale.. 81,
Rents 8;
Mortgages:
Principal ..$2,000,472.78
Interest . . . 79,689.17
2,080,
Loans on Stocks and Bonds. 232,
Dominion of Canada and
Provinces of Canada
Securities 523,
Canadian Municipalities' De-
bentures 25,
Other Bonds or Debentures. 49,
Loans or Advances to Trust
Estates and Guaranteed
Mortgage Accounts
under Administration by
,000.00
621.78
,578.16
161.95
241.45
264.22
630.42
352.37
the Corporation
437,2.50.00
Cash in Chartered Banks..
125,721.92
Cash on hand
275.00
671.55
S
4,389,768.82
Guaranteed Trusts Account —
Mortgages:
Principal ..$6,959,693.93
Interest . . . 278,373.67
«
7,238,067.60
Dominion of Canada and
Provinces of Canada
711,222.01
Canadian Municipalities' De-
1,039,568.47
Cash in Chartered Banks . .
135,459.90
9,124,317.98
Estates, Trusts and Agencies' Account —
Mortgages on Real Estate. $13,778,436.45
Government and Municipal
Debentures 13,299,980.28
Stocks and Bonds 1,231,797.81
Loans on Debentures, Stocks
and Bonds 1,087,840.41
Sundry Assets 16,491.57
Cash on hand and in Banks 1,698,032.52
$31,112,579.04
Original Assets, including
Real Estate, Mortgages,
Debentures, Stocks and
Bonds, etc., at Inventory
Value 69,135,658.34
LIABILITIES.
Capital Account —
Capital Stock
subscribed .$2,000,000.00
Capital fully
paid $1,648,600.00
Capital partly
paid 78,360.00
$ 1,726,960.00
Reserve Fund 2,250,000.00
Contingent Reserve Fund . . . 35,000.00
Dividends declared and un-
paid:
No. 98, due
January 2nd,
1921 $45,000.00
Interest in lieu
of dividend
on N ew
Stock, pay-
able Janu-
ary 2nd,
1921 1,407.39
46,407.39
Appropriation for Federal
Income Tax 38,237.54
Profit and Loss 293,163.89
$
Guaranteed Trusts Account —
Guaranteed Trust Funds for
Investment $ 9,124,317.98
Estates, Trusts and Agencies' Account —
Trust Funds for Investment
or Distribution $31,112,579.04
Inventory Value of Original
Assets of Estates and
Agencies under Admin-
istration by the Corpora-
tion " 69,135,658.34
4,389,768.82
9,124,317.98
100,248,237.38
100,248,237.38
$113,762,324.18
$113,762,324.18
The report of the Directors and the accompanying state-
ment.'; were duly adopted and the following Shareholders were
appointed Directors for the ensuing year: Hon. Featherston
Osier, K.C.. D.C.L., Hamilton Cassels, K.C., LL.D., Brig.-Gen.
Sir John M. Gibson, K.C., K.C.M.G., LL.D., Hon. W. C. Ed-
wards. Wellington Francis, K.C., A. C. Hardy, John Hoskin,
K.C., LL.D., D.C.L., Lieut.-Col. R. W. Leonard, Thomas Brad-
shaw, J. Bruce Macdonald, Hon. Sir Daniel H. McMillan, K.C.
M.G., Lieut.-Col. John F. Michie, Sir Edmund D. Osier, J. G.
Scott, K.C, Sir Edmund Walker, C.V.O., LL.D., D.C.L., E. C.
Whitney, E. T. Malone, K.C, H. H. Williams, His Hon. Lionel
H. Clarke, Robert Robson.
At a subsequent meeting of the Directors, the following
officers were elected President a^nd Vice-Ph-esidents: Hon.
Featherston Osier, K.C, D.C.L., Brig.-Gen. Sir John M. Gib-
son, K.C, K.C.M.G., LL.D., Hamilton Cassels, K.C, LL.D.
291
36
THE MONETARY TIMES
I'UK K OF SILVER FELL RAPIDLY IN lit2()
GREAT-WEST LIFE'S TWENTY-EIGHTH YEAR
(Continued from page ,ii>)
Prices and Eastern Exchanges
The decline in the price of silver has naturally had an
effect on the eastern exchanges. China in particular has
suffered in this movement. On February 16, 1920, when the
price of silver in the London market was 83% pence, the
value of the Shanghai tael was 9 shillings and 3 pence in
London; on March 24th, when the price of silver had fallen
to 71 %d., the value of the tael also had fallen and it was
worth only 7 shillings and 5 pence. The decline in the value
of the tael kept pace with the decline in the price of silver,
until, on June 9th, when silver had fallen to 45%d., the tael
had fallen to 4 shillings and 10 pence. This precipitous de-
cline in the purchasing power of the tael has curtailed
Chinese buying in foreign markets, particularly in the Eng-
lish piece-goods market which has been heavily affected.
The Silver Markets
The principal market for silver is London. In Septem-
ber, 1917, the United States controlled silver, and did not
permit its export except under license. The Pittman Act of
April 23, 1918, a most important piece of currency legislation,
authorized the sale of silver not exceeding 350 million silver
dollars from the dollar reserve. Out of this, the equivalent
of 270,000,000 fine ounces, the share of India was 200 million
fine ounces, which was bought by the British government and
imported into India in the following year. The act further
stipulates that silver ' sold under its provisions shall be re-
placed by purchases made at the fixed price of $1 per fine
ounce, and that the metal so purchased must be "the product
of mines situated in the United States and of reduction works
so located." The lesult of these provisions is to establish
two separate and distinct markets and quotations. In the
United States, domestic commercial silver is virtually pegged
at 99 ^'i cents. Foreign silver is also quoted on the New York
market, but moves with the London price.
From the above outline of the silver situation it can be
understood that the conditions ruling demand are so varied
and difficult of estimation that any prediction in regard to
future prices is impossible. The predominating factor must
continue to be Indian and Chinese purchases, and these are
governed by general conditions of trade and commerce in the
East.
MUTUAL LIFE OF NEW YORK MAKES SOME RECORDS
The Mutual Life Insurance Company, of New York, one
of the oldest and greatest of American life insurance com-
panies, in publishing the results of its operations in 1920,
discloses that the insurance paid for was by far the largest
in the company's history, having reached the total of $423,-
677,719, as compared with $354,422,133 in 1919. The total
outstanding insurance, December 1, had reached the stupen-
dous aggregate of $2,357,973,121.
Among the payments to policyholders were $30,397,483
in death claims, $8,789,260 in eridowments, $2,644,772 in an-
nuities and $21,976,566 in dividends to policyholders — the
company has no stockholders, being purely mutual. The total
payments to policyholders were $87,523,160, and the total
received from policyholders was $85,652,598. The company's
mortality experience in 1920 was distinctly favorable, and a
material sum was thereby added to the savings, which are
available for dividend payments. The assets on December 21,
1920, footed $671,000,181, the liabilities were $647,941,638,
and the contingency resei-ve or surplus was $23,058,543.
The Mutual Life does a big business in Canada. Returns
for 1920 are not yet ready, but, assuming the company's
experiences to be as favorable as those of other life com-
panies operating in the Dominion and in line with its ex-
periences of the preivous year, there can be no doubt as to
the results. The amount of new business issued by the
Mutual in Canada in 1919 was $9,752,423, and the total
assurances in force at January 1, 1920, was $45,364,903.
The Great-West Life Assurance Company's new busi-
ness issued during 1920 amounted to $60,703,525, compared
with $51,577,899 in the previous year. Premium income dur-
ing 1920 totalled $8,021,406, as against $6,698,792 in 1919.
Intei'est and j-ents &nd profits on securities brought in $1,-
873,188, making a total income of $9,967,435, compared with
$8,598,393. Payments to policyholders were about $200,000
lower at $2,695,057. Death claims incurred were $1,180,788,
as compared with $1,020,086. The increase was not as great
as the larger business in force would ha^ve ju.stified, and the
actual losses were only 49 per cent, of those provided for in
the standard mortality tables. The largest surplus earn-
ings in the company's history, being $1,388,897, are reported
for the year.
At the present time the company is confining its new
investments to farm mortgages for which there is a large
demand, enabling the company to make a careful selection.
With regard to mortgages acquired in past years, there are
now on hand properties amounting to only $88,003, and that
loans with interest ovei-due for one year or more amount to
only about 2% per cent, of the mortgages. During 1920, the
company increased its mortgage loa.ns by $3,397,562, and
added $1,855,598 to its holdings of bonds and debentures.
The rapidity of the development of the insurance business
in the Dominion in the past few years is further emphasized
by the following figures of the Great- West Life: —
1920. 1919. 1918.
$ 60,703,525 $ 51,577,899 $ 30,659,557
256,850,276 212,560,276 170,863,673
37,382,646 31,260,347 27,432,823
8,021,406 6,698,792 5,488,460
New business issued.
Business in force . . . .
Total assets
Premium income
SLIGHT IMPROVEMENT IN EMPLOYMENT CONDITIONS
Dominion headquarters of the Employment Service of
Canadr.', Department of Labor, reports that there was a
further, though slight decline in employment during the
week ended January 8, when it was reported by 4,892 firms
that they had released 2,769 persons, a contraction of less
than one-half of 1 per cent. Firms in eight industrial groups
registered additions to their payrolls aggregating 7,521 work-
ers, but in 24 groups there were decreases totaJling 10,290
employees. It may be noted that the figures used in this
report do not include loss of time due to industrial disputes.
Some recovery from the pronounced decreases of the preced-
ing week was recorded in all provinces except Quebec, Sas-
katchewan and Alberta, the increase of 2,995 persons in
Manitoba being the largest. For the following week, more-
over, further expansions in operations were expected in r..ll
except the four western provinces. In Nova Scotia, Prince
Edward Island and Alberta only was employment at a higher
level than that i-eported by the same firms for January 17,
1920 (the base week), while substantia.! losses in this com-
parison took place in other sections of the country.
The most decided increases in employment since the pre-
ceding week occurred in railway shops, where work was
resumed following a tempoiary shut-down. There was, how-
ever, activity in the manufacture of other vehicles, including
steel ships, tools, in sugar refineries, chocolates, confection-
ery, thread, yarn, cloth, g&rment, hoisery and knit goods
factories, and also in logging camps. These additions very
largely represented recovery from inventory and holiday
shut-downs, and further, more pronounced, increases were
anticipated for the succeeding week. The largest contrac-
tions in payroll were reported in retail trade as a result of
after-Christmas inactivity. There were losses, however, in
abattoirs, cement, boot, shoe, harness, saddlery, brass, bronze
and copper products, pulp, paper, printing, publishing, paper
box and tobacco factories and in the mining of coal, asbestos
and chrome, also in local, railway and water transportation,
wholesale trade, building and railway construction.
February 4, 1921
■THE MONETARY TIMES
TRAVELLERS' MUTUAL BENEFIT SOCIETY
The annual general meeting of the Commercial Travel-
lers' Mutual Benefit Society, of Toronto, was held on Jan-
uary 29. The following officers and trustees were elected for
the year 1921: President, Chas. S. Parsons; vice-president,
S. M. Sterling; treasurer, S. R. Wickett; secretary, Richard
Ivens; trustees for Toronto, Robt. Forbes, W. J. Sykes, R.
Maxwell, J. Burns, J. Curtis, L. R. Arnett, A. J. Tipping,
E. Fielding and H. L. Willmott.
The report for the year 1920 was presented by the presi-
dent and adopted. The following are noteworthy facts: The
total assets are now $194,712, as against $174,369 a year ago;
$342,000 new insurance was written during the year, com-
pared with $267,000 written in 1919, an increase of over
$200,000, after deducting $33,500 paid in death claims during
the year.
CANADA PERMANENT MORTGAGE CORPORATION
Notwithstanding the many problems which have con-
fronted the companies operating in the mortgage and loan
field in the past few years, the Canada Permanent Mortgage
Corporation is able to present a financial statement for the
year ended December 31, 1920, which should be regarded
with satisfaction by the shareholders. Profits for the year
were $854,277, as compared with $827,983 for 1919. With
the balance of $150,493 brought forward from the previous
year, the total available for distribution was $1,004,770. Out
of this the regular dividend of 10 per cent, on the outstand-
ing capital of $6,000,000 was paid, $250,000 was transferred
to the reserve fund, and a balance of $154,770 was carried
forward.
The balance sheet contains evidence of increased mortgage
business. The amount of this class of loans is shown at $28,-
064,269, as against $26,211,306 in the previous year. Advances
on stocks and bonds were lower in volume, the figure being
$296,623, as compared with $404,699 in 1919. Holdings of
securities, including stock of $978,000 in the Canada Perman-
ent Trust Co., are shown at $2,267,343. as against $4,232,-
768 previously. Cash in banks and on hand increased from
$1,245,070 to $1,253,848.
The liabilities side shows a decline in deposits from
$6,206,962 to $6,129,483. Sterling debentures have decreased
from $10,244,641 to $9,642,550, while currency debentures
increased to $4,553,765 from $4,122,278. The reserve fund
is now $6,000,000, being equal to the amount of paid-up
capital.
BANNER YEAR FOR EXCELSIOR LIFE
The Excelsior Life Assurance Company reports that in
1920 applications for new assurances were received for $11,-
479,234, an increase over the amount written in the previous
year of $1,119,325. There was issued and revived a total of
$11,138,242, bi-inging the total assurances in force at the
close of the year to $40,574,890. Net premium receipts
amounted to $1,283,029, an increase of $183,010 over 1919,
while total receipts for premiums, interest, rents, etc., were
$1,605,597. as compared with $1,398,962 for the previous year.
Policyholders participated more largely in the company's
profits as a result of the increased business and i-educed
death claims, payments, including profits, surrender values,
etc., amounting to $102,397. compared with $79,929 for 1919.
Death claims were $233,391, as against $249,522 in the pre-
vious year.
The total assets available as security to policyholders
now amount to $6,468,457, an increase for the year of $669,-
820. The holding of government and municipal bonds now
total $1,554,252. The average rate of interest earned upon
invested assets was increased to 6.87 per cent., and. as the
reser\'e on the major portion of the company's business is
based on a 3 per cent. rate, the large surplus interest earn-
ings will contribute materially to policyholders' profits. The
reserve fund for policyholders was increased $646,624 during
the year to $5,197,877.
iiiiiiiiiiiNiiiiiiiuiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin^
The
Western Empire
Life Assurance
Company
iiiiiiiiiiniiiiiiiiiiiiiiiiiiiiilitiiiiiiiiiiiiiiiini
Head Office: Winnipeg, Canada
B Extracts from Ninth Annual Statement a
I Year 1920 |
I Total .\ssets S 653,116.06 |
I Total Liabilities, excluding Capital 383,000.95 |
■ Surplus to Policyholders 270,115.11 |
I Cash Received for Premiums, less Re- %
B insurance 130,759.48 =
I Cash Received for Interest 27,530.36 i
i All other Income 91,224.69 I
I Total Income 249.514.53 |
I Expenses 82.720.35 |
I Paid to Policyholders 26,883.83 |
g Insurance in Force 5,481,463.00 J
a Securities Deposited with Provincial m
I Governments 168.530.00 i
8 The Directors declared a Dividend to Share- m
B holders of 6''. . H
1 Dividends to Policyholders during 1921 will be g
S upon the same generous scale as heretofore. g
% rlllllulllllllllllllllllllllllllllllJIIIIIIIIIUIIII E
I DIRECTORS AND OFFICERS. |
I William Smith, |
B President and Managing Director. J
I R. W. Craig, K.C, |
M Vice-President. J
i Brig.-Gen. H. M. Dyer, C.M.G., D.S.O., |
M Vice-President. M
% Geo. E. Graham, |
B General Manager of The Dominion Atlantic B
B Railway Co. H
1 G. N. Broatch, 1
M Barrister and Solicitor, Moose Jaw, Sash. m
I F. D, Byers, 1
H Barrister and Solicitor, Edmonton. M
1 . S. D. Hannah, m
H Regina. m
1 Dr. a. J. Fraser, m
I Medical Director. J
I F. C. O'Brien, |
g Secretary-Treasurer. B
I 395 I
iiiiPimiiiiiiiiniiiiiiiiiiiniiiiiiiiiiiiiiiiiiHiiiiBiiiiiiiiiiiiiiiiiiiM
THE MONETARY TIMES
Volume 66.
Nearly a Million Surplus for Quebec Province
Hon. Walter Mitchell Announces Results for Last Fiscal Ycai— Eslimalts for Year Ending
June 30, 1922— Complications of Bond Issues Explained— Net Funded Debt is $38,531,751
A SURPLUS of $951,910 for the year ending June 30, 1920,
was reported by Hon. Walter Mitchell, provincial treas-
urer of Quebec, in his budget speech on January 27. Higher
expenditures for the coming year, especially on education,
are to be provided for. The treasurer stated that the pro-
vince was always able to command the best market prices
when loans were made.
Estimated expenditure for the year ending June 30, 1922,
totals $12,814,421, made up as follows: Public debt, $2,587,-
151; legislation, $495,880; civil government, $845,850; adminis-
tration of justice, $1,317,773; public instrution, $1,645,822;
lunatic asylums, $936,625; reformatory and industrial schools,
$245,000; health, $165,888; public works, ordinary, $670,776;
labor, $61,600; agriculture, $882,000; roads, $831,500; lands
and forests, $441,000; colonization, mines and fisheries, $683,-
500; charities, $78,770; charges on revenue, $616,200, and mis-
cellaneous services, $301,450, and $7,633 for railway sub-
sidies.
Receipts are estimated at $13,010,743. The federal
subsidy is given as $2,028,280, but there will be the federal
census this year, and this will mean almost another million
dollars of revenue. Mr. Mitchell also estimates revenue from
licenses at $1,200,000.
Results Last Year
The treasurer showed that the estimates for the fiscal
year ending 30th June, 1920, had anticipated an ordinary
revenue of $10,449,393, and an ordinary expenditure of $10,-
399,345, which would have left an estimated surplus of $50,-
047; where as the actual result of the year's operations
showed an ordinary revenue of $14,472,650, and an ordinary
expenditure of $13,520,740, giving a surplus of $951,910.
The actual ordinary revenue was more than the estimate by
$4,023,257, and the estimates of the ordinary expenditure
were exceeded by $3,121,394. The receipts and expenditure
v/eri the largest in the history of the province.
With respect to cash operations in 1919-1920, Hon. Mr.
Mitchell explained that on the 1st July, 1919, there was in
the banks the sum of $879,233, and outstanding warrants at
the same date amounted to $927,106. On the other hand the
total receipts from all sources from the 1st July, 1919, to
30th June, 1920, were $26,629,861, and the total payments
$25,302,924, showing an excess of receipts of $1,226,937,
leaving a balance of $1,179,063; there was on deposit in
banks, $1,783,842, from which had to be paid outstanding
warrants amounting to $604,778.
The treasurer then gave a statement of the direct liabilities
and available assets of the province at the 80th June, 1920.
He showed that the liabilities formed the total of $48,756,763,
while the assets aggi-egated $12,972,756, making the excess
of liabilities over assets $35,784,006.
Funded Debt
On this head he showed that there had been an increase
in the net funded debt of $815,464, but this was not a large
increase when it was considered that on roads alone $3,413,-
108 was expended last year. The total amount of the net
funded debt was $38,531,751. This could not be called ex-
cessive considering that from 1912 to the 30th of June, last,
$25,153,108 had been spent on roads and for this expendi-
ture we have to-day some 3,400 miles of improved macadam,
concrete and gravel roads throughout the province, which
have the beneficial effect of cheapening the cost of delivery
of farm produce to the consumer in the city, of facilitating
travel throughout the country, not to speak of the induce-
ment to tourists to come here and spend their money.
At the 30th June, 1920, the unfunded debt, consisting of
temporary loans, trust deposits, outstanding warrants, etc.,
amounted to $8,048,649, but the government had against this
at the same date in the form of cash, claims against in-
dividuals and corporations for advances, Quebec's share
($1,173,006) of the common school fund, etc., a total of $10,-
796,394, leaving a surplus of assets over the unfunded debt
of $2,747,744.
Current Financial Year
Dealing with the question of the current year, Mr.
Mitchell stated that the receipts from ordinary revenue for
the six months ended on the 31st December, 1920, had been
very satisfactory and the estimated receipts would probably
be exceeded at the end of the fiscal year. There would also
be an increase over the estimates in the ordinary expenditure
for the current fiscal year by the amount of special war-
rants issued, since 1st July, $93,271, as shown in the state-
ment laid on the table of the House and also by the supple-
mentary estimates to be submitted to the House for the
amounts required for the different services to complete the
necessary expenditure for the current year. It was expected
that this increase in expenditure would be more than covered
by the increase in revenue, judging by the receipts up to the
31st December.
Temporary Loans
Under the authority of Article 807 of the Revised
Statutes of Quebec, 1909, and of order-in-council of the lieu-
tenant-governor of the 17th June, 1920, a temporary loan
was obtained from the Bank of Montreal of five million dol-
lars, to bear interest at the rate of six per cent, per an-
num. This loan was made to recoup temporarily the Consoli-
dated Revenue Fund of the province, in part for the large
advances made on account of the construction of the St.
Maurice River waters storage; of the St. Francis River
waters storage; of the Ste. Anne and Savanne rivers' waters
storage; of the extension of the Sanitorium at Ste. Agathe
des Monts; of the construction of an annex to the Montreal
court house; of the construction of the bridge over the Ba-
tiscan River, and for expenditure for good roads under the
Good Roads Act, 1912, which expenditux'es are, by the acts
authorizing them, to be provided from permanent loans. This
loan was paid 18th October, 1920, from the proceeds of short-
term loans authorized by Act 10 George V., chapter 3.
Under authority of the Act 10 George V., chapter 3,
tenders were called through the Bank of Montreal from the
leading bond houses in Canada and in the United States for
$3,500,000 province of Quebec five-year gold bonds to be
dated 1st March, 1920, bearing interest at the rate of six
per cent, per annum, payable half-yearly on March 1st and
September 1st, principal and interest payable in gold at the
Bank of Montreal, at Quebec or Montreal, or at the agency
of the Bank of Montreal, New York, at the option of the
holders. Bonds to be in the denomination of $1,000 each,
with interest coupons attached. In response to the call
tenders were receive<l from two syndicates. The most favor-
able tender, that of the syndicate composed of Messrs. Wood,
Gundy and Co. and the Dominion Securities Corporation, was
accepted and the amount $3,255,973 was paid by them to the
credit of the province in the agency of the Bank of Montreal.
New York. 'The price obtained for these bonds in Canadian
funds was 104.59, the province, however, being obliged to
pay prevailing rate of exchange realizing as above set forth.
Tenders were called for a second issue of $3,500,000
under the same terms, through the Bank of Montreal. In
response to the call, three syndicates tendered and the most
favorable, the syndicate composed of Messrs. Harris, Forbes
February 4. \92l
THE MONETARY TIMES
39
Efficient service is the keynote of membership of
^h^ jHonetarp t^imcB
Trade Review and Insurance Chronicle
— IN—
Canadian National Newspapers ""i Periodicals Association
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Standards of Practice
Canadian National Newspapers and Periodicals Association
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shall dedicate their best efforts
to the cause of business and public
service, and to this end shall pledge
themselves :
I To consider first the interests of
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in all departments.
■J To eliminate, in so far as pos-
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creative advertising work.
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] r\ To determine what is the high-
est and largest function in the
field which they serve and then to
strive, in every legitimate way, to pro-
mote that function.
This is Number One of a series of advertisements regarding an Association that typifies
thorough-going Canadian stability. Read the forthcoming advertisements in the Magazines,
and Agricultural, Business, Religious and Educational newspapers and Technical newspapers.
Canadian National Newspapers and Periodicals Association
Office - 70 Lombard Street - Toronto, Ontario
40
THE MONETARY TIMES
Volume 66.
and Co., Incorporated, and the National City Co., was ac-
cepted and the amount $3,302,366 was paid by them to the
credit of the province in the agency of the Bank of Mont-
real, New York. The price obtained for this issue in Cana-
dian funds was 105.13, the province, however, being obliged
to pay prevailing rate of exchange, realizing as above set
forth." From the proceeds of these two loans the $6,000,000
temporary loan authorized by section 1 of the Act 5 George
v., chapter 2, maturing 1st April, 1920, was paid, the balance
of the price of the bonds being applied in reduction of the
advances made out of the Consolidated Revenue Fund. The
accrued interest, $33,640, w-as credited to interest account.
Loan of June, 1920
Under authority of the Act 10, George V., chapter 3,
debentures for $5,000,000 were issued, dated 1st June, 1920,
bearing interest at the rate of six per cent, per annum,
payable half-yearly on June 1st and December 1st, $2,500,000
maturing 1st of June, 1925, and $2,500,000 maturing 1st
June, 1930. Principal and interest payable in gold at the
Bank of Montreal, Quebec or Montreal, or Toronto, at the
option of the holder. Bonds in denominations of $100, $500
and $1,000 were issued, of which $1,000,000 was sold to the
Montreal City and District Savings Bank, Montreal, at 98.53
and accrued interest, and $4,000,000 were issued and offered
to the public through the Bank of Montreal and numerous
bond houses, on which a commision of one per cent, was paid,
netting 99 to the province, and all of which have been sold
at that rate. The province on the whole issue of $5,000,000
realized $4,993,692. The proceeds of these loans were applied
towards the payment of the temporary loan of the 15th June,
1920. The accrued interest, $48,392 was credited to interest
account.
Some criticism was made by certain financial houses of
the fact that the government did not accept the tenders
which were called for this loan by the fiscal agents of the
province of Quebec, in a call for tenders dated the 14th April,
1920, and which call for tenders contained the following con-
ditions:—
"Delivery and payment will be made at the Bank of
Montreal, Quebec, on the 15th May next."
and;: —
"No tender for any part of the issue or for securities not
precisely as described or varying the terms of payment and
delivery will be considered."
Three tenders were received in answer to the call for
tenders as made. One by the Dominion Securities Corpora-
tion, Ltd., and Syndicate, and one by Hanson Brothers and
Syndicate, and the third by the Bank of Hochelaga. The
two first mentioned tenders complied with all of the condi-
tion? of the call for tenders, but the tender of the Bank of
Hochelaga contained modifications as to payment and de-
livery, contrary to the specific conditions contained in the call
for tenders, in the following manner: —
"In case any one of offers 1, 2 or 3 is accepted, we will
take delivery of and pay for $1,000,000, on May 15th, 1920,
$1,500,000 on or before June 15th, 1920, and $1,250,000 on or
before September 1st, 1920, $1,250,000 on or before October
1st, 1920."
"In case any one of offers 4 and 5 is accepted, we will
take delivery of and pay for $1,000,000, on May 15th, 1920,
and $1,500,000 on or before June 15th, 1920."
In view of the fact of the Bank of Hochelaga's tender
being the highest, but not conforming to the call for tenders,
it was deemed advisable not to accept any of the tenders
made, the fiscal agents of the province having resei-ved its
i-ight not to accept the highest or any bid, in the following-
terms: "The highest or any bid will not necessarily be
accepted."
The position taken by the province was that they could
not accept the highest tender because it did not conform to
the call for tenders, as this would have been manifestly un-
fair to the other tenderers, and the province could have been
severely criticized by all good business and financial pre-
cedent, and it would have resulted in untold injury to the
ci'edit of the pi'ovince on any and all future calls for tenders
made by it, and might have resulted in financial houses de-
clining to tender ore future issues and thereby resulting
in great and material loss and irreparable injury to the
credit of this province, not to speak of the just and equitable
criticism that might be made to the method of so dealing
with tenders.
The government then negotiated the sale of $1,000,000
above referred to with the Montreal City and District Sav-
ings Bank, Montreal, at 98.53, on the conditions that they
were to be held for investment purposes during the whole
term for which the debentures were issued, and that they
would not be placed on the market and compete with the
balance of the issue of $4,000,000, which it was intended to
dispose of through the fiscal agents of the province and vari-
ous bond houses, as before mentioned, at par and accnied
interest, and to net the province 99.
The Hon. M. Mitchell closed his remarks on this item by
saying that the House and the province of Quebec had no
apologies to make to anybody, and could hold its head high
with pride for the price that its bonds have got in the
markets of the world.
NEW BRUNSWICK HAS CURRENT DEFICIT
Surplus More Than Wiped Out by Interest on St. John
and Quebec Railway Obligations
RECEIPTS of $3,100,548 and expenditures of $3,004,200 are
shown in a financial statement of New Brunswick for
the year ended October 31, published on January 29. The
expenditure, however, does not include interest on bonds and
other indebtedness of the St. John and Quebec Railway,
amounting to $311,903, from which is taken province's share
of the net earnings for the year, $59,552, which would make
the net charge from St. John Valley Railway $252,351, and
makes an actual deficit on current account of $156,002, which
amount is carried into the balance sheet as "deficit on cur-
rent revenue account for the year ending October 31, 1920,
as per statement attached."
The certificate of Price, Waterhouse and Co. is ad-
dressed to the Premier of New Brunswick and reads as
follows: —
"In accordance with your instructions we have examined
the books and accounts recording the financial transactions
of the Government of the Province of New Brunswick for
the fiscal year ending October 31, 1920, and certify that,
in our opinion, the attached balance sheet exhibits a correct
view of the financial position of the province as at October
31, 1920, according to the best of our information and ex-
planations given to us and as shown by the books of the
province.
"The additions made during the year to the capital ac-
counts of roads and bridges represent expenditures classi-
fied as 'permanent' by the provincial engineers.
"The revenue and expenditure account for the year has
been charged with interest on bonds and other indebtedness
of the St. John and Quebec Railway Co. amounting to
$311,903.69, but no credit has been given in respect of in-
terest accrued during the year on the balance of cash re-
tained by the trustees for the bondholders of the St. John
and Quebec Railway, which balance, we understand, may be
subject to adjustment when a final settlement with the
trustees is effected."
The revenue includes: — Dominion subsidy, $637,976;
territorial revenue, $1,589,539; fees, provincial secretary,
$31,204; taxes, incorporated companies, $164,386; motor
vehicle fees, $198,111; provincial hospital, $58,391; provincial
prohibition, $79,562; succession duties, $90,340.
Expenditure includes: — Agriculture, $83,243; education,
$318,697; forest service, $175,347; legislative assembly, $52,-
637; motor vehicle fund, $142,959; provincial prohibition,
$59,346; provincial hospital, $172,433; public health, $48,079;
public works, $811,810.
February 4, 1921
THE MONETARY TIMES
41
diiiiiiiiiMiiiiiiiiiiiiiiiMiiiiiuiiiiiiiiiiiiiiiiniinniiiiniiiMMMiniiiniMiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiuiiMHiiiiiiiiuiiiiiiiiiiiiiiiiiiiiuiiiiiiiiii^
I CHARTERED ACCOUNTANTS |
JiiiiiuiiiiinMMiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiniiiiniiiiMiiiiiiiiiHiiiiMiiniiiMiiiiiiiiiiiiiiiiiiuuuiiiiiiiiiiiniiiuiiiiiiuiiiiiiiiiiniMiiiiriiiiiiiiir
Baldwin,
Dow &
Bowman
CHARTERED
ACCOUNTANTS
OFFICES AT
Edmonton
Alberta
Toronto
Ont
CHARLES D. CORBOULD
Chartered Acconntant and Auditor
ONTARIO AND MANITOBA
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David Mowat Donald MacTavish
Mowat, MacTavish & Co.
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712 Canada BIdg., Saskatoon, Sask.
W. A. Bawdbn, C.A. (P.C.A. England and
Wales). F. H. KlDD. C.A.
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CENTRAL BUILDING, VICTORIA, B.C.
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TeleRraphic and (.able Addres>
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Bank of Toronto Chambers
LONDON ONTARIO
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chartered Accountants
508-S09 Electric Railway Chamberi
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Hubert Reade & Company
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Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
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AUDITS
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AND AT:-
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CLEVELAtNU
RONALD, GRIGGS & CO.
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Trustees. Uqi,ulat.>rs
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
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Telephone Main 7014
LUMSDEN BUILDING - - TORONTO, CANADA
RUTHERFORD WILLIAMSON & CO.
Cluirtercd Accountanls. Trustees and
Liquidators
8fi Adeuaiuf. Street East, TORONTO
S04 .MctiiLL Building. .MO.NTREAL
Cable Address-" WILLCO."
Represented at Halifax. St. John. Winnipeg.
CLARKSON, GORDON & DILWORTH
Chartered Accountants, Trustees.
Receivers, LiQuidators
Merchants Bank Bldg.. 15 Wellington Street West
Established 1864^
Toronto
Norman B. McLeod
Ctiartered Accountant
AUDITS INVESTIGATIONS
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803 Kent Bldg. - TORONTO
Phone MAIN 3914
HENRY BARBER & CO.
Established 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railway Building,
6 King Street West TORONTO
HARBINSON & ALLEN
Chartered Accountants
408 Manning Chaunbers
TORONTO
Arthur Phillips & Co.
CHARTERED ACCOUNTANTS
508-509 Electric Railway Chambers
WINNIPEG - Man.
Cable Address— ■' Unravel "
42
THE MONETARY TIMES
CONCUKKENT USE OF TIJADE MARKS
Canadian Courts Have Not Yet Cone on Kecord on This
I'oint — Some Decisions of Courts of England and
United States
IN a recent case before the Exchequer Court of Canada,
that of United Cigar Stores, Limited, vs. Miller, the
petitioner sought to have the words "United Cigar Stores"
registered as a trade mark, and to have the same words
registered in the name of the objecting party expunged.
These words constituted the trading name of the petitioner,
and most of the trade marks claimed by it were for pai'ticu-
lar brands of cigars. It was held that on the facts as stated
the petitioner was not entitled to have the words "United
Cigar Stores" registered as a trade mark.
Mr. R. S. Smart, of the Ottawa Bar, has made an anno-
tation dealing with the question brought up in the above case,
viz., if a company has a corporate name similar to that of the
petitioner would that be a bar to any action which might
be brought against it for passing off its goods as the goods
of the petitioner? Mr. Smart says that these rights as be-
tween two parties who use a ti'ade mark concurrently have
never been defined in Canada.
Decisions in United States ,
In the United States the following decisions have been
pronounced: —
"There is no such thing as property in a trade
mark except as a right appurtenant to an established busi-
ness or trade in connection with which the mark is employed.
The law of trade marks is but a part of the broader law of
unfair competition; the right to a particular mark grows
out of its use, not its mere adoption; its function is simply
to designate the goods as the product of a particular trader
and to protect his goodwill against the sale of another's
product as his; and it is not the subject of property except
in connection with an existing business.
■ 'The exclusive right to the use of a trade mark is
founded on priority of appropriation, 36 Sup. Ct. Rep., at
361, 'But these expessions are to be understood in their ap-
plication to the facts of the cases decided. In the ordinary
case of parties competing under the same mark in the same
market, it is correct to say that prior appropriation settles
the question. But where two parties independently are em-
ploying the same mark upon goods of the same class, but
in separate markets wholly remote the one from the other,
the question of prior appropriation is legally insignificant;
unless at least it appear that the second adopter has selected
the mark with some design inimical to the interests of the first
user, such as to fake the benefit of the reputation of his
goods, to forestall the extension of his trade, or the like.' "
The Law in England
The same question has also arisen in England in the
case of Edge and Sons, Ltd., vs. Gallon and Sons, the facts
and decision being as follows: —
"In 1888 E. commenced to call his blue 'Dolly,' and it
was ordered, invoiced and advertised thereafter as 'Dolly.'
In 1894 a company was formed which took over the business
of E. In 1898 the company commenced an action against
G. and Son for supplying blue not being the plaintiff's,
to persons ordering 'Dolly Blue.' The blue so supplied was
blue manufactured by R. and bore R's trade mark, which
consisted of a washing tub called in some parts a 'Dolly'
tub and in other parts a 'Peggy' tub with a handle of a dolly
or peggy stick projecting from it. R. had used this trade
mark since 1871, and registered it under the Trade Marks
Act in 1876. It was admitted that R's blue was called 'Oval
Blue' and was invoiced as 'Oval'; but the defendants' case
was that retail customers often asked for it as 'Dolly Blue,'
both before 1888 and since, and that there had, in fact, been
a concurrent use of the word 'Dolly' to describe E's blue
and R's blue. J Icid, at the trial, that the plaintiffs were en-
titled to an injunction. An appeal was allowed with costs
above and below, and the plaintiffs' costs of the trial, which
had been paid by the defendants, were ordered to be repaid
to them, but without interest. The plaintiffs then appealed
to the House of Lords. Held, by the House of Lords, that
the concurrent user was proved, and the judgments of the
Court of Appeal were right.
Trade Mark and Design Act
In Canada under the Canadian Trade Mark and Design
Act Che applicant is required to be entitled to the exclusive
use of the trade mark. In Partlo v. Todd, Chief Justice
Ritchie said, "It is not the registration that makes the party
proprietor of a trade mark; he must be proprietor before he
can register. I think the term 'proprietor of a trade mark'
means a person who has appropriated and acquired a right
to the exclusive use of the mark." In the same case on
appeal it was said by Hagarty, C. J. O.: "I think the object
of the act was not to create new rights but to facilitate the
vindication of existing rights . . . (cites early statutes).
All this legislation is based upon the further protection of
existing rights. Next year 24 Vict., eh. 21, was passed, for
the first time establishing a register. It declares it ex-
pedient to make provision for the better ascertaining and
determining the right of manufacturers and others to enjoy
the exclusive use of trade marks claimed by them." A dis-
tinction must be drawn between a trade mark which is a
mark on goods and a trade name used on a hotel, store or
establishment. A trade mark as such must be applied to a
vendible article."
Sebastian, 5th Edition, at page 17 says, "All such cases
whether of trade mark or trade name or other unfair use of
another's reputation are concerned with an injurious attack
upon the goodwill of a rival business; customers are diverted
from one trader to another, and orders intended for one
find their way to another. Trade marks are really a branch
of the goodwill of the business with which they are con-
nected, representing it in the market, while the trade name
over the shop represents it to the passerby. It is by the
devaluation of the goodwill that that of the trade marks is
regulated; they are in fact included in and valued as part
of the goodwill; severed from it they cannot exist."
Boston Rubber Case
The use of the name of a corporation as a trade mark
was dealt with in the Boston Rubber Shoe Co. v. Boston
Rubber Co. of Montreal, the facts and decision being: —
The plaintiff incorporated in Massachusetts in 1852;
registered the trade mark in 1897. The defendant in 1899
sold rubber boots and shoes with the mark of "The Boston
Rubber Co., of Montreal, Ltd.," and pleaded that the mark
was in effect a corporate name and the use of was not
fraudulent. The trial by Audette held that defendants were
free to use their corporate name in the absence of fraud.
The judgment was reversed by the Supreme Court which
held that the word "Boston" had become an invented or
fancied name. Sir Louis Davies said: —
"It seems to me, with great respect, very difficult on
the evidence in this case to find that fraud and bad faith
were absent; . . . The object . . . may not have
been the decisive purchasers . . . but that such would
have been the result, I entertain no reasonable doubt."
"Nor am I able to see how he can, by obtaining for
himself and his associates letters corporate under the
statute, do under cover of the corporate name what he other-
wise would be prevented from doing. The defendant com-
pany has the right to use its corporate name for all lawful
and legitimate purposes. It has not the right to use it, how-
ever, by stamping it upon goods it has manufactured and
offered for sale, if by so doing it causes the purchasing
public to believe that the goods are those of the plaintiff
company." Restrained use of words "Boston" or "Bostons"
in connection with rubber boots and shoes by stamping
circular advertising without clearly distinguishing from the
shoes of the plaintiffs.
February 4, 1921
THE IMONETARY TIMES
43
•iiiiiiiMiiiiiMiiiiiMiiiiiMiiiMiiiiiiiiiiiiiiiiiMiiinMiiiiiiiiniiiiiiiiiiiiiiiiiiiiiininiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^
I REPRESENTATIVE LEGAL FIRMS |
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BRANDON
KILGOUR, FOSTER & McQUEEN
Barriitcrt, Solicitort, Etc., Brandon, Man.
Solicitors for the Bank of Montreal. The
Royal Bank of Canada. Hamilton Provident
and Loan Society. North American Life
Assurance Company.
LETHBRIDGE, Alta.
Conybeare, Giurch & Davidson
Barristers, Solicitors, Etc.
Solicitors for Bank of Montreal. The Trust
and Loan Co of Canada, British Canadian
Trust Co., &c.,»c.
C. F. P. Conybeare, K.C., H \V. Church, M.A.
R. R. Davidson. LL.B.
Lethbridge - - Alta.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL. BANK BUILDING
PRINCE ALBERT. SASK.
CALGARY
Charles F. Adams, K.C.
Bank of Montreal Bldg.
CALGARY • - ALTA.
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H. D. Mann, ,M.A.,LL,B.
LENT. MACKAY & MANN
BarrliMrs, Kollcllon. Kolarl«a, Etc.
303 Grain Hzchange Bldti , Calgary. Alberta
Cable AddrCMa."Lenso." Western Union Code
Solicitors for The Standard Bank of Canada,
The Northern Trusts Co. Associated Hort.
gaae Investors. Ac.
J. A. Wrioht, LL.B.
C. A Wriohi, B.CL.
WRIGHT &WRIGHT
Barriilers, Solicilon, Notaries, Rtc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. AC. Rutherford, K.CLL.D.
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S. H. McCuaig Cecil Rutherford
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& GRANT
Barrittert, Solicitors, Etc.
514-18 McLeod Bid;. Edmonton, Alberta
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE - Alberta
MEDICINE HAT
C. F. H. LON...
LL B
J. \V. SLEtOMT. B.A.
LONG
&
SLEIGHT
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MEDICINE
HAT
and BROOKS, Alta.
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers, Etc.
Moose Jaw • Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
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405 Westminster Trust Building
NEW WESTMINSTER, B.C.
SASKATOON
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LOCKE & McAUGHEY
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VANCOUVER
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Onuglas J.G.Gibson
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Barristera. So
icitors. Etc.
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BritKh North An
Montreal (Bank of
lerica Branch)
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onrSl., VancoDTM, B.C.
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THE MONETARY TIMES
News of Industrial Development in Canada
Toronto Harbour Board Since its Inception Has Brought in Industries
at the Rate of One in Ten Days — Little Hope of Securing Steel Orders
From Britain— Brighter Outlook for Smaller Steel Products— Howard
Smith Company Running at Seventy-Five Per Cent, of Capacity
SINCE the inception of the Toronto Industrial Department,
operated under the joint auspices of the city and the
Harbour Commission in February, 1919, the record of tan-
gible accomplishment is equal to one new industry estab-
lished in Toronto every ten days, according to the annual
report of the department. These industries occupy more
than 1,200,000 square feet of floor space for manufac-
turing' and storage purposes. Thirty-five of the industries
were established in 1919 and twenty-nine last year. Of the
latter, twenty-one were American, two British and six Cana-
dian. In addition, approximately seventy-five British, Cana-
dian and American firms are at the present time actively
investigating the industrial possibilities of Toronto as pre-
sented by the department.
Greater pi-ogress has not been made owing to the limited
new building construction, due to the high cost of materials.
In many cases the department has been advised by incoming
industries that it was their intention to establish branch
plants as soon as the cost of construction became normal.
The activities of the department have in the main been
directed to endeavoring to establish basic industries in To-
ronto. To this end a careful survey has been made of the
greatest importations into Canada, ascertaining the largest
manufacturer of such articles in other countries, and setting
forth the facts relating thereto as applied to Canada's trade
possibilities.
The officials feel that the work accomplished to date is
satisfactory, and, vdth the completion of the Chippawa power
development scheme, which will furnish the city with un-
limited power facilities, greater progress will be made, and
Toronto will soon become the largest manufacturing and
industrial centre in the Dominion. Manager E. L. Cousins
advocates the establishment of a permanent industrial force
in London, England, to furnish British manufacturers with
accurate data regarding industrial openings in Toronto. He
expresses the opinion that in the very near future over
?6,000,000 of British capital will be invested in industries in
Toronto. What is needed most in Great Britain is unlimited
publicity, coupled with accurate data regarding industrial
opportunities here to induce the manufacturers of the Mother-
land to establish branches in Toronto.
The Steel Industry
Reports from New York indicate that, after four weeks
of restricted operations, amounting in some cases to almost
complete shut-downs, various independent steel companies are
starting up on orders that will keep their plants going on
a fifty per cent, scale for two weeks or more. Railroads,
shipyards, fabricating shops and implement works, the ordi-
nary outlet for plates, shapes and bars, give promise of
moderate consumption in the first half of the year.
In Canada, however, there is no indication of a revival
of any significance at the present. The steel companies in
Nova Scotia are operating very much below noraial, and the
possibility is that the Dominion Steel Corporation will close
down entirely unless orders are received. It was hoped that
Roy M. Wolvin, president of the company, on his return from
England, would issue the "carry on" order in the hope that
the future would bring business, but no such announcement
has been made. The hope of securing business from Britain
at the present time is very remote, as even the British steel
manufacturers are having difficulty in placing their products.
George Williamson, of Barrow-on-Furness, England, is
visiting Canada as a representative of large English ship-
building interests, and brings a story of depression in the
steel, engineering and allied industries. The vairous yards
throughout the British Isles are fairly busy on their slipways
and in their engineering shops, due, of course, to the fact
that most of the orders now being executed were placed six
to nine months ago, when the outlook was not obscured by
a too uncertain future, and when the warning of economists
still went unheeded.
Small Steel Products
There is stated to be a better outlook for the smaller
steel goods. The Ontario Steel Products, Ltd., is running its
plants at considerably more than half capacity at Chatham
and Ganaoque, Ont., and orders are stated to be coming in,
with business much brighter.
The Ontario Steel Products Company manufactures a
line of garden tools, such as spades, rakes, etc., and with the
approach of spring there should be a better demand for this
class of goods.
Howard Smith Paper Mills
A recent report in the press regarding the retarded
operations and wage reduction of the Howard Smith Paper
Mills is stated to be misleading by the company, and to some
extent incorrect. Last year, when labor was scarce, the
workers at the Beauharnois and Cornwall mills endeavored
to form a union, and threatened to stop work unless higher
wages were granted. Unable to do otherwise, the company
granted the increase, with the understanding that when labor ,
became more plentiful the increase would be cut off. In these
two mills this has been done. At the Crabtree Mills of the
company there has been no reduction in the wage schedule.
These mills are running five days a week.
A few days ago, Howard Smith, president of the enter-
prise, stated that the company was working around 75 per
cent, capacity, and that, with business picking up, it looked
as if normal running would be in vogue in about a month.
This 25 per cent, of less than normal working means a re-
duction in certain of the Toronto Paper Company's mills from
54 hours normal a week down to 36 hours for the day hands
and from 32 to 40 hours for the other shifts, whose normal
week is 48 hours. The reductions are not uniform, and con-
stitute about 25 per cent, average reduction from normal.
Contracts for high-grade paper have been made at last year's
average price.
Cut Glass Company Enlarging
The Community Cut Glass Company, of Winnipeg, Man.,
is enlarging its plant and increasing its staflf by more than
forty men. The company commenced manufacturing last
August, and at the time only American glass was available,
but this month the first shipment of Belgian glass arrived,
and the company will use this entirely in the future.
A new company, under the name of the Dundas Plate
Glass Company, has been formed, and has been located at
Dundas, Ont.
Transformation of the sash- and door plant of the Rat
Portage Lumber Company at Norwood, Man., into a modern
automobile factory is progressing. The new company plans
to build a thousand cars during the first year of operations.
The McClary plant, formerly the Buck Stove Works,
Brantford, Ont., which had been closed since Christmas, has
reopened, though not at full strength. The staff will be in-
creased as the market opens up.
Last week the Peace River Milling Company commenced
operations at Peace River, Alta.. The flour factory has a
capaicty of 150 barrels per day, while there is a grain elevator
with a capaicty of 40,000 bushels. The company is a local
organization, the stock having been subscribed by men of
the district.
February 4, 1921
THE MONETARY TIMES
The Imperial
Guarantee and Accident
Insurance Compsuiy
of Canada
Head Office, 46 KING ST. WEST, TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $20(J,000.00
Authorized Capital - - - $1,000,000.00
Subscribed Capital - - - $1,000,000.00
Government Deposits - - $111,000.00
LI^MriOlV GUARANTEE A
^^ *-^ '^ ^-^ A^ ACCIDENT COY.. Lin
AND
imited
Head Office for Canada - Toronto
tiployers' Liability. Elevator. Contract, Per
Guarantee. Internal Revenue. Sickness. Cour
Teams and Automobile.
AND FIRE INSURANCE
IT PAYS TO INSURE YOUR AUTOMOBILE
WITH
The Canadian Surety Company
ScTMlC
Mh
Cost.
CANADIAN STRONG PROGRESSIVE
^jfie tffs^^9Sitff&z9f6ms«ifftt
FIRE INSURANCE
AT TARIFF RATES
$500,000
Accident
Health
Fidelity
Bondt
PUte
GU>i
BorgUry
lPjEC^.f;lAN'TOBA:r
Aatomobile
Insurance
Fire and
Theft
Liability
Property
Damage
Boiler
I ExplotioD
A. E. Hab. Vict-Vrtsident Honb Office
J o. Melin. Sec -Treas. lOtb Floor, Electric Railway Chamberi
Good Openings for Live Agents
Palatine Insurance Company
LIMITED
OF LONDON ENGLAND
Capital Fully Paid $1,000,000
Fire Premiums, 1919 3,957,650
Total Funds - 6,826,795
Head Office : — Canadian Branch
COMMERCIAL UNION BUILDING, MONTREAl
\V. S. JoPLiNG. Manager
Toronto Office— 60 KING STREET WEST
Jones & Proctor Bros.. Limitrh. .-Vfients
■iiniiiiiiiiiiuiDiiiiaiiiiiiiiiiiiiiiiiiiiiiiii
Automobile— 1 920"Season
Policies to cover ANY or ALL motoring risks
ATTRACTIVE AGENCY CONTRACTS
British Empire Fire Underwriters
82-88 King Street East, Toronto
THE EMPLOYERS'
LIABILITY ASSURANCE CORPORATION
OF LONDON, ENG. limited
ISSL'ES
Personal Accident Sickness
Employers' Liabilit)' Automobile
Workmen's Compensation Fidelity Guarantee
and Fire Insurance Policies
C. W. I. WOODLAND
General Manager for Canada and Newfoundland
Lewis Building,
MONTREAL
JOHN JENKINS.
Fire Manager
Temple Bldg.
TORONTO
DOUBLE INDEMNITY BOND
TWICE AS MUCH LIFE ASSURANCE FOR THE SAME PREMIUM
IF DEATH RESULTS FROM ANY ACCIDENT.-ENQUIRE -
46
THE MONETARY TIMES
Volume 6'^.
NEW INCORPORATIONS
Canadian International Paper Co., Three Rivers, $20,000,000
— Supercharge Knjrine Co. of Canada, Ltd., Montreal,
,$2.000.000— Tesa Films, Ltd., Ottawa, $1,000,000
The following is a list of companies recently incorporated
under Dominion charter, with head office and authorized capi-
tal, &s follows: —
London Fancy Paper Box Co., Ltd., Montreal, $24,000;
H. B. McCarthy, Ltd., Port Hope, $40,000; Darwins (Ottawa),
Ltd., Ottawa, $100,000; Rice Lake Canoe Co., Ltd., Cobourg,
.fl00,000; Tesa Films, Ltd., Ottawa, $1,000,000; Colonial and
Western Land Co., Ltd., Montreal, $100,000; Farmer Bros.
Jewellery, Ltd., Montreal, $50,000; Chain Hat Shops, Ltd.,
Montreal, $50,000; Lassner, Ltd., Montreal, $49,900; William
Freedman, Ltd., Ottawa, $100,000; Temple Silica Sand, Ltd.,
Toronto, $150,000; Delson Brick Co., Ltd., Montreal, $100,000;
Royalite Oil Co., Ltd., Calgary, $1,000,000; Minimax Electric
and Manufacturing Co., Ltd., Montreal, $99,000; Hawkes-
bury Textiles, Ltd., Montreal, $50,000; Supercharge Engine
Co. of Canada, Ltd., Montreal, $2,000,000.
Provincial Charter
The following is a list of companies recently incorporated
under provincial charter: —
Alberta. — Western Farming and Mercantile Co., Ltd.,
Calgary, $20,000; Norrie and Fawcett, Ltd., Medicine Ha.t,
$20,000; Alberta Dairy Supplies, Ltd., Edmonton, $300,000;
General Farming Co., Ltd., Calgary, $250,000; Eastern Liquor
Export Co., Ltd., Calgary, $20,000; Industrial Coal Co., Ltd.,
Drumheller, $20,000; Edmonton Drug Co., Ltd., Edmonton,
$20,000; Brown's, Ltd., Calgary, $14,500; Oscar Collieries,
Ltd., Calgary, $300,000; Cushman Investments, Ltd., Calgary,
$20,000.
British Columbia. — Kirkham's Grocerterias, Ltd., Van-
couver, $100,000; London Loan Co., Ltd., Vancouver, $50,000;
Willow River and Stony Labe Timber Co. of Canada, Ltd.,
Victoria, $250,000; Overwaitea (Kelowna), Ltd., Vancouver,
$10,000; Abbotsford Garage E-nd Machine Shop, Ltd., Abbots-
ford, $20,000; Eraser Valley Auction and Commission Co.,
Ltd., Langley Prairie, $10,000; Pentieton Fruit Products,
Ltd., Pentieton, $50,000; Sannie Transportation Co., Ltd.,
Vancouver, $25,000; Putnam, Cosens and Wright, Ltd., Van-
couver, $25,000; Anglo-American Club, Ltd., Vancouver, $10,-
000; Colwick Patents, Ltd., Victoria, $35,000; Converse Co.
of Ca-nada, Ltd., Vancouver, $5,000; Second Canadian Division
Club, Ltd., Vancouver, $10,000; Continental Distributors, Ltd.,
Vancouver, $.50,000.
Manitoba. — John E. Dennison, Ltd., Brandon, $50,000;
Commercial Securities Corporation, Ltd., Winnipeg, $500,-
000; Crawford Painting and Decorating Co., Ltd., Winnipeg,
$20,000; Devlin Mining and Development Co., Ltd., Winni-
peg, $500,000; John Erzinger, Ltd., Winnipeg, $500,000; Mac-
Fee's Drug Stores, Ltd., Winnipeg, $10,000; John A. Forlong
and Co., Ltd., Winnipeg, $20,000; Scott Fruit Co. of Brandon,
Ltd., Brandon, $24,000; R. S. Robinson and Sons, Ltd., Win-
nipeg, $40,000; Coughlin, Johnston and Speers Commission
Co., Ltd., St. Boniface, $40,000; W. D. K. Stooker Co., Ltd.,
Winnipeg, $500,000; Arctic Ice Co., Ltd., Winnipeg, $950,000;
Manitoba Veteran, Ltd., Winnipeg, $500,000; Broad Valley
Trading Co., Ltd., Winnipeg, $20,000; El Roi Tan Cigar Co.,
Ltd., Winnipeg, $150,000; Granview Rink Co., Ltd., Winnipeg,
$15,000; Drugs, Ltd., Winnipeg, $600,000; Sveinson, Sigurd-
son and Co., Ltd., Selkirk, $20,000; Winnipeg Amusements,
Ltd., Winnipeg, $60,000; Specialty Distributors, Ltd., Winni-
peg, $100,000; Winnipeg .Associated Retail Credit Exchange,
Ltd., Winnipeg, $25,000; Universal Motors, Ltd., Winnipeg,
$50,000.
New Brunswick. — Atlantic Ship-Chandlery, Ltd., St.
John, $24,000; Grsnd Manan Fisheries, Ltd., Grand Harbor
$49,000.
Ontario. — Algonquin Securities, Ltd., Toronto, $500,000;
Pronto, Ltd., Toronto, $40,000; Novelty Embroidery Co., Ltd.,
Toronto, $150,000; Runnymede Lawn Bowling Club, Ltd., Tor-
onto, .*40,000; Manchester Stores, Ltd., Gait, .$200,000: E. B.
Ratcliffe, Ltd., Hamilton, $40,000; A. W. Cash Co. of Canada,
Ltd., Toronto, $50,000; Curlers of Gait, Ltd., Gait, $40,000;
Sellers and Jones, Ltd., Fort William, $250,000; Thermoflash,
Ltd., Toronto, $1,000,000; Grenville Crushed Rock Co., Ltd.,
Smith's Falls, $300,000; A. E. Wade, Ltd., Sault Ste. M&rie,
$150,000; Woolley Smith Co., Ltd., Toronto, $150,000; Moon
Motor Sales, Ltd., Toronto, $100,000; Siche Gas Range and
Heat Co., Ltd., Toronto, $60,000; Albury Cemetery, Ltd.,
Rednersville, $10,000; Associated Agencies, Ltd., Toronto,
$40,000; Thunder Bay Dairy Products, Ltd., Fort William,
$40,000; Toronto Furnace Co., Ltd., Toronto, $200,000; Na-
tional Pad Co., Ltd., Toronto, $40,000; Brasher Adjustable
Skirt Band Co., Ltd., Toronto, $40,000; Caradoc Farmers'
Co-operative Co., Ltd., Mount Brydges, $20,000; Norfold Co-
operative Co., Ltd., Simcoe, $100,000.
Quebec. — Canadian International Paper Co., Three
Rivers, $20,000,000; Phonograph Sales Co., Ltd., Montreal,
$49,900; E. G. M. Cape and Co., Montreal, $1,000,000; Kenneth
Guscotte Rea, Inc., Montreal, $500,000; Monsarrat Machinery
and Foundries, Ltd., Riviere du Loup, $8,000; L. H. and N. A.
Timmins, Inc., Montreal, $1,000; Bard, Ltd., Montreal, $20,-
000; Isidore St. Laurent and Fils, Ltd., Luceville, $49,000;
Debenture Savings Co., Ltd., Montreal, $20,000.
CEASE TO TRANSACT BUSINESS IN MANITOBA
It was announced in these columns last week that a
number of insurance companies who were transacting busi-
ness in the province of Saskatchewan, and whose licenses
expired at the close of 1920, have made no renewals. The
same situation is in evidence in Manitoba, a number of com-
panies having ceased to transact new business in the pro-
vince. Some of these companies are: The Maryland Assur-
ance Corporation of Baltimore; the Equitable Life Assurance
Society of the United States; Lloyd's Plate Glass Insurance
Company.
The Manitoba government will not initiate immediately
group insurance for civil servants, it has been announced.
The whole question probably will be referred to the legisla-
ture at the coming session. It has been found that, owing
to the comparatively advanced average age of employees and
the fact that many of them, by length of service, would be
entitled to immediate maximum benefits under the plan, the
premium cost would be very high. The government does not
feel justified in putting the plan into operation without get-
ting the sanction of the legislature.
That some system of insurance for civic employees is
urgently needed, and that if satisfactory arrangements can
be made with an insurance company, insurance against acci-
dent, sickness and death will be consummated for them by
the city on some mutual basis to be decided upon later, was
the belief and decision of the Calgary, Alta., city commis-
sioners at a conference between that body and a deputa-
tion from the federation of civic employees last week. It was
suggested that the scheme should be based on the contract
that the city should pay half of the premium and the em-
ployees the other half. However, this was only a tentative
suggestion.
A. Z. DeLong has severed his connection with the Ter-
minal .Agency, Ltd., the Vancouver, B.C., insurance agency,
and has become resident manager of the local insurance firm
of Wilcock, Peck and Hughes. For several years Mr. De-^
Long had been the manager of Little and Loomis, Inc.. and
last year the provincial business of this company was in-
corporated under the name of Terminal Agency, Ltd.
The Scottish Canadian Assurance Co. which was re-
cently granted a Dommion license, has been registered to
transact fire and hail insurance in Ontario.
February 4, 1921
THE MONETARY TIMES
47
Confederation Life
ASSOCIATION
INSURANCE IN FORCE, $133,000,000.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL AP-
PROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto "Solid as the Continent." Insurance
in Force. Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID .\S THE CONTINENT"
HEAD OFFICE
TORONTO
Important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE WINNIPEG. MAN.
Assurances. New and Kevi\
Premiums on same
-Assurances in I'orce
Total Premium Income
Policy Reserves
Admitted Assets
Average Policy
SI. 211, 447. 00
43.890.00
3.458,939.00
109.586.03
211,497.00
296,430.62
2.237.50
Collected in cash per Sl.OOO insurance in force 31.75
For particulars of a good agency apply to
ADAM REID, Managing Director Winnipeg.
Fifty-one Years of Steady Progress
One of the most brief yet impressive histories of C-inadisn financial in
stitiitions IS contained in the annual record of The Mutual Life of Canada
The current issue will be ready in a few days. A copy will be sent to you
on application. It contains tifty-one successive summai ies, shewing in
the parallel columns the increase from year to year of the company's
various receipts, expenditures, etc. No other document could better
convey the idea of solid, uniform achievement, and the momentum of the
advance is now greater than ever. The prospects are bright for a still
more rapid expansion within the next few years The assets of the com-
pany exceed $40.000 000. and the assurances in force have reached
$206.00(1 000. There is a gross surplus of more than five million dollars
over and above the amount necessary to guarantee all policies, so that
the position of the company, in spite of tlie strain of recent years, is one
of uncommon strength.
The Mutual Life Assurance Co. of Canada
Waterloo
Ontario
CO-OPERATIVE SERVICE
'TO Policyhi.lacrs between Ihe
success. Every ri-prcsenta
must look after our clients' intei
Life has built an enviable reputat
Write for booklet. "Wnr Beat Ailvrrllnrrn
apply
Uantcrii !$aperlnlrnilriit, at llrnd Ullirr
ny and the Aticnts is ttie secret of our
given the utmost assistance, but he
DurinK the last ■4\ years The Coilianttl
prompt payment of claims.
For MansRer'spositions in On-
nce. etc.. to 8. 8. WEAt'EK.
THE CONTINENTAL LIFE INSURANCE CO.
Head Office
TORONTO, ONTARIO
ENDOWMENTS AT LIFE RATES
ISSIKI) ONLY BY
THE LONDON LIFE INSURANCE CO.
Head OHice ... LONDON, CANADA
Profit Results in this Company 70% better than Estimates.
POLICIES 'GOOD AS GOLD."
To Protect
Dependent Ones
is the bounden duty of every man, and this ir best done
by means of suitable Life Insurance. Insurance in its
most attractive form is offered under the Limited Pay-
ment Policies issued by The Great-West Life. Not only
is adequate provision made for dependents but the in-
sured is able to provide for his own future as well.
The cost— profit returns — and every other feature of this
plan makes it a most desirable fornj of Insurance. Ask
for the leaflet "Common Questions Briefly Answered"
giving interesting information.
THE GREAT- WEST LIFE ASSURANCE COMPANY
HEAD OFFICE
WINNIPEC
The Western Empire
Life Assurance Company
Head Office: 701 Somerset Building, Winnipeg, Man.
SASK.ATOON
Branch Offices
CALGARY EDMONTON VANCOfVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office for Canada, Humilton, Onl. Assets over $1,700,000
Writing I- ire Insurance at Cost.
All Policies dividend paying and non-assessable.
NOR.MAN S. JONES. Munauer R. J. MAHONY. Asst M.inaKer
CROWN LIFE
V^^E have a policy to suit every insurance need — up-
^^ to-date, liberal in its provisions. Participating
Policyholders in th; Crown Life are entitled to ^5% of
all profits earned by the Company in addition to the
guarantees contained in their Policies.
I'he Crown Life is a good ('omtrnny to insure in or to rrpnsent
Grown Life Insurance Co., Toronto
Aitnti wanttd in unrepresented districts
48
THE MONETARY TIMES
Volume 66
News of Municipal Finance
Annexations of Alunicipalities to Montreal Will be a Problem for Quebec Legislature — Metro-
polis Objects to Taking Over the Weak Without the Strong— Force May be Used— Penticton
Improves its Standing— Calgary Tax Arrears Nearly Five Millions— Collections are Improving
Charlottetown, P.E.I.— A deficit of $2,767 on last year's
transactions is shown by the city, due to the taxes which
have not yet been paid for 1920.
Lethbridge, Alta.— $33,000 worth of bonds, due in 1922,
have been redeemed, thus affecting a saving in the interest
of 4% per cent, for the unexpired period of a year and four
months, and netting the city the sum of $1,850 saved in the
process.
Ottawa, Ont. — Taxes and water rates collected by the
city last year amounted to $3,977,600, an increase of nearly
half a million dollars over the amount for the previous year.
Tax arrears at the end of 1920 amounted to $568,734, of
which amount it is estimated $430,110 is collectible.
P. H. Veale, civic assessment commissioner, reports
that the income assessment has increased nearly 200 per
cent, in the past five years. The income assessment for
1920 was $10,379,777, as against $3,530,982 in 1916. In 1920,
9,631 income forms were sent out from the assessment office
and were followed up with 2,463 letters. Mr. Veale's report
also shows a substantial increase in the business assessment.
In 1916 the business assessment was $9,710,950; in 1919,
$10,381,276, and in 1920, $11,390,099, an increase of 17.29 per
cent, in five years.
Vancouver, B.C. — H. J. Painter, assessment commission
er, places the value of the buildings throughout the city for
this year at $77,353,371. The revised figures for last year,
as passed by the Court of Revision, were $73,652,920, or an
increase of $3,700,541 in the value of improvements alone.
In land values Mr. Painter estimates the assessed value of
taxable realty in the city for this year as $133,240,598, com-
pared with $133,954,010 as the revised land values for last
year. The decrease for the current year is explained by
Comptroller Pilkington as representing approximately the
value of the various parcels of land which fell to the city at
the 1919 tax sale and thereby became exempt from taxation.
The value of these tax sale lots amounts to $910,325, which
indicates that the assessment commissioner has not made
any material increase in assessed values for this year as far
as land alone is concerned. The total assessed value of both
land and improvements within the city's boundaries is placed
by Mr. Painter at $210,593,969, while the total for last year
after being revised was $207,606,930, or an increase of
$2,993,039.
Calgary, 'Alta. — For three years, while the total amount
of taxes owing has been increasing, the percentage of col-
lection of taxes also has been improving, according to figures
of J. H. Mercer, city treasurer. The treasurer's statistics
show that while unpaid arrears of taxes and current taxes
now amount to $4,630,254, the percentage of collections for
the last three years has been, on all taxes, as follows: — 1918,
40.75; 1919, 43.50; and 1920, 44.54 per cent.
The improvement in percentage of collections, however,
is really better than this, for the i-eason that it is in the
collection of cui-rent taxes that the increasing improvement
is most evident. It is the long-standing arrears that are
hardest to deal with, and a start has now been made in
.cleaning these up through the drastic method of the tax
sale. In current taxes, the treasui-er's figures show that in
1918 66 per cent, of the current taxes were collected. In
1919 the current taxes were collected to the extent of 69.50
per cent., while in the year just past current taxes were
oolected up to the total of 71.21.
Penticton, B.C. — Over the period of two years the
municipality has greatly improved its financial standing.
The total tax levy last year was $93,413, and taxes paid
totalled $73,529, leaving arrears for the year of $19,883.
These figures compare with $68,840 the levy for 1918, and
tax collections of $40,011. The total arrears of taxes, with
interest at the end of 1918 was $41,397. This amount had
been reduced to $25,850 at the end of 1920.
The balance sheet shows a stronger position, assets ex-
ceeding liabilities by $128,809, as compared with $103,014
at the end of 1918. The debenture debt is now $819,000,
against which the sinking fund amounts to $89,812, being
$4,091 short of the necessary amount. At the end of 1918,
the sinking fund was $66,206, against a debenture debt of
$530,500, but was $31,500 in arrears. The better standing
in regard to sinking funds has been brought about by the
improved tax collections.
Utilities are also in a much better position. The profits
on the ii'rigation system for the year amounted to $3,470,
compared with a loss of $2,311 for 1918. Electric light de-
partment had a loss of $489, but this compares with a loss
of $2,253 for 1918. The water department had a profit of
$2,821, compared with a profit of .$625 for 1918. The com-
bined profit of the utilities was $5,802, as against a deficit
of $3,939 for 1918.
Montreal, Que. — The city council has passed a resolution
calling upon the legislature to annex the municipalities on
the Island of Montreal, which are twenty-two in number,
to the city, and has placed itself on record as favoring
action to force such cities as Westmount, Outremont, Verdun
and Lachine into union with the metropolis. The municipali-
ties mentioned, together with others, are opposed to such
action, and have placed their views before the legaslature,
and Premier Taschereau has almost as good as stated that no
municipalities will be annexed to Montreal against their will.
In introducing the motion, Aid. Brodeur, leader of the
council, said as Westmount was surrounded by Montreal terri-
toi-y, and Outremont is nearly enclosed, except at the north-
ern section, they really formed part of Montreal. Verdun
was likewise a part of the city. He considered it was in the
city's interests to annex them. Referring to the Metropolitan
Commission, he said the debts of all the municipalities were
to be consolidated with the debt of Montreal. Montreal
would, therefore, become responsible for all these debts, and,
as these municipalities wanted to take part in the affairs of
Montreal, he thought they should go all the way and annex
themselves to the city.
The municipalities which resent annexation are in good
financial standing, and are opposed to the idea of becoming
associated with the less fortunate municipalities. On the
other hand, those places whose standing is not quite as good
as it might be, wish to become annexed to the city of Mont-
real. As Premier Taschereau has stated, such action would
not be fair to the metropolis. It is a case of either all or
none being annexed, as already the city's debt has been ad-
vanced to a high mark through taking over weak munici-
palities.
A realty tax of $1.35 has been passed by the city council,
this is the same rate as for 1920. The council has also
approved of temporary loans not to exceed $10,000,000 in
anticipation of 1920 revenue.
The report just submitted to the Administrative Com-
mission by P. Collins, assistant city treasurer, shows that
the total valuation of property in the city for 1920 amounts
to $893,179,797, less $3,494,180 of reductions, giving a net
figure of $889,685,617. Exempted property for 1920 amount-
ed to $226,249,403, or $1,735,532 more than the previous year.
The taxable value for 1920 was $663,436,214, an increase of
$36,321,644. The revenue from taxes on real estate, includ-
ing school and snow removal taxes, amounted to $15,420,-
435, as against $14,107,054 for the previous year.
February 4, 1921
THE MOKBTARY TIMES
4y
C.P.R. BUILDING
TORONTO
nOUSSERWOOI>>^''G>MPANY
INVeaTMCNT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
INSURANCE
Promptly effected in all its Branches
FIRE, AUTOMOBILE, ACCIDENT, LIABILITY, Etc.
Intelligent Advisory Service
OSLER, HAMMOND & NANTON
WINNIPEG
NEW ISSUE
City of St. Catharines
6;„ COUPON BONDS
Maturities : 1922-1926
Principal and semi-annual interest (April 20
and October 20) payable in Toronto or St.
Catharines; denomination $500 and $1,000.
PRICE TO YIELD 6.40%
Harris, Forbes & Company
INCOEPOBATED
C. P. R. Building 21 St. John Street
TORONTO MONTREAL
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur BIdg., WINNIPEG, Canada
Membera of Winnipeg Real Estate ELxchange. Winnipcft Stock Exchange
c.
H.
BURGESS & CO.
Government and
Municipal Bonds
14
King Street Eaat
Toronto
WINSLOW & COMPANY
Stock and Bond Brokers
GOVERNMENT AND
MUNICIPAL BONDS
INDUSTRIAL SECURITIES
300 Nanton Building, Winnipeg
Exceptional —
— both for safety of principal and surety of
return is this
7% Canadian Industrial Bond
with a bonus of Common Stock payable in New
York (unas.
A»k a* for fall particulars
R. M. HEFFERNAN & Ca, Limited
IM^EST,\tE\T BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
50
THE MONETARY TIMES
Volume 66.
Government and Municipal Bond Market
Ontario and Saskatchewan Bonds Readily Absorbed — Latter Issue was
Increased to $3,000,000, But Hon. Peter Smith Would Not Meet Extra
Demands— Victory Bond Market Firm— St. Thomas Selling Over the Counter
THERE can be no doubt as to the trend of the government
and municipal bond market. The ready absorption of
the $10,000,000 Ontario issue and the $3,000,000 Sasli;atche-
vvan, together with other municipal issues, and the continued
demand for Victory bonds, are all favorable signs. One of
the chief influences in bringing about the change in the
bond market in the past two months is the lessening of de-
mand for funds for general business, but the rising tendency
has been to some extent the result of psychological influence.
A few weeks ago investors were apprehensive and inclined
to be depressed, but this feeling is disappearing and con-
fidence is becoming predominant.
The great danger at the pi-esent time, however, is over-
confidence and extravagance, which factors, if becoming
over-ruling, will work to weaken the market. When the pro-
vince of Ontario bonds found such a ready market last week,
dealers aproached the provincial treasurer for an extra issue
of $5,000,000, but the Hon. Peter Smith was disposed to
move cautiously, in spite of the fact that the province is
in need of funds and that the mai'ket is in a receptive mood.
Any other action on the part of the treasurer would hardly
have met with the approval of conservative bond men, as
any movement towards oversupply at the present time will
not help the bond business, but will be extremely adverse.
The movement of Victory bond prices during the past
week, as illustrated below, has been favorable. Fractional
reactions took place in two issues, but the market as a whole
was firm and steady with a good demand throughout: —
Control
Last week.
This week.
1922 98
1927 97
1937 98
1923 98
1933 961
1924 97
1934 93
High. Low. High. Low.
99^4
98%
100%
99%
98%
96%
95%
98%
98 99 V4
971/2 99
99 99% 98
97 99 96
971/2 99 98
95% 96% 96
95 95% 95
Local Selling
In view of the better position of the Canadian bond
market and of the further improvement which will no doubt
follow as the year proceeds, it is not expected that many
municipalities will undertake to arrange their own financing
this year. There were a number of municipalities whose
effoi'ts in the local market were attended by success in
1920, and these will perhaps use this same method in dis-
posing of their securities until they find it more profitable
to use the whole Canadian market by selling thi-ough the
usual channels. Most of the municipalities which used the
local mai-ket last year received par for their debentures,
which, in the majority of cases was on a 6 per cent, basis.
The general market has not yet reached that level for
municipalities or provinces, but is gradually proceeding to-
wards that rate.
St. Thomas, Ont., one of the pioneers in the "sell at
home" method has just placed $233,000 waterworks deben-
tures on the local market and $50,000 debentures for im-
provements to the gas works. Already about $100,000 has
been taken up.
Marmora, Ont., is also olfering $15,000 6V2 per cent,
electric light debentures, and application for about $5,000
have befen received.
Newmarket, Ont., has completely disposed of $20,000
sewer debentures ''over the counter."
Lennoxville, Que., is selling $75,000 6 per cent. 40-year
debentures locally, and already a considerable amount has
been disposed of..
Coming Offerings
The following is a list of debentures off'ered for sale^
particulars of which are given in this or previous issues: —
1 Tenders
Borrower. Amount. Rate % . Maturity. close.
Mossbank, Sask $ 2,000 8 10-instal
Sarnia, Ont. '. 164,747 var. various Feb. 7
Rockwood R.M., Man. 52,878 6 30-instaI. Feb. 10
Portage la Prairie,
Ma.n 54,000 6 20-years Feb. 11
Mossbank, Sask. — Tenders are being asked for $2,000 8
per cent. 10-instaIment debentures. W. R. Chrystal, secre-
tary-treasurer.
Trail, B.C. — A by-law has been passed by the rate-
payers authorizing the expenditure of $37,000 for extension
and repairs to the waterworks system, and debentures for
this amount bearing 7 per cent, interest, and payable in
Trail, Toronto or New York, will be issued shortly.
Sarnia, Ont. — Tenders will be received up till February
7, 1921, for the purchase of the following debentures: — $86,-
147.68 6'/2 per cent., maturing from 1921-30; $50,000 6 per
cent., maturing from 1921-35; $18,400 61,2 per cent., ma-
turing fi-om 1921-35; $10,200 6V2 per cent., maturing from
1921-30. The total issue is $164,747.68, and the proceeds
will be used for various local improvements.
Rockwood R.M., Man. — Tendei's will be received up till
February 10, 1921, for purchase of $52,878.59 6 per cent,
good roads debentures, dated November 1, 1920, and matur-
ing from one to thirty years. Bidders to state offer, includ-
ing accrued interest, in Canadian currency. V. W. Mc-
Farlane, secretary-treasurer, Stonewall, Man.
Fredericton, N.B. — Tenders will be received up till Febru-
ary 15, 1921, for $120,000 5 per cent, serial bonds maturing ■
from 1924 to 1934.
Bond Sales
Edmonton, Alta. — W. Ross Alger and Co. have pur-
chased the following school district issues: Georgetown,
$3,500 8 per cent. 15-years; Westlock Consolidated, $4,300
8 per cent. 15-years; Cranstone Dale, $3,500 8 per cent.. 10-
years. ,
Three Rivers, Que. — Keating and McCrea, a local com-
pany, has purchased $200,000 6 per cent, bonds maturing in
1925 at a price of 98.39, which is on about a 6.37 per cent,
basis: Versailles, Vidricaire and Boulas offered 98.01. while
G. L. Beaubien and Co. bid 97.50.
Windsor, Ont.. — The Dominion Securities Corporation
has purchased the following debentures, aggregating $477,-
585, at a price of 94.42, which is on about a 6.40 per cent,
basis:— $110,000 51/2 per cent., 30-instalments; $234,585 5I2
per cent., 10-instalments; $125,000 6 per cent., 20-instal-
ments; $8,000 6 per cent., 40-instalments. The following
tenders were received: —
Dominion Securities Corp 94.42
W. A. Mackenzie and Co., and R. A. Daly and
Co ' 94.33
Wood, Gundy and Co 94.312
R. C. Matthews and Co., and A. E. Ames and
Co : . . 94.219
Brent, Noxon and Co 94.137
National City Co.. Ltd 94.048
United Finance Corp 93.53
There was a great deal of trouble regarding the award
of the issue, then difliculty arising from the fact "that
tenders were called on the four blocks separately. In the
February 4, 1921
THE MONETARY TIMES
Convenient Collection of
Interest
is one of the three outstanding advan-
tages to be derived from purchasing
Canadian Government and Municipal
Bonds. The other two are security
and marketabihty.
These three features permit the inves-
tor to feel that his principal is safe,
that his interest is prompt and isure,
and that he can, if necessary, find a
ready market for his bonds.
At present prices these bonds yield
from 6% to 7%.
Write for a list.
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng
mftWMMm-w^w^Am.m.m
We Buy, We Sell,
We Trade in
Victory Bonds
Transactions handled with accuracy
and despatch.
We will gladly buy more Victory
Bonds for you. We will gladly sell
Victory s for you.
We maintain eight thoroughly equipped offices
— six in Canadu, one in New ^'ork and one in
London, England. Securities of every de-
scription actively dealt in.
If you wish to read a stimulating review ot
Canadian business conditions, write and ask
us to mail you this month's Investment Items.
W. L. MclilNNON
OEA.\ H, PETTES
We Buy an
d Sell
VICTORY
BONDS
W. L.
at Current
Prices
McKINNON & CO.
Go\'einmenl and M
jnicipal Bonds
McKINNON
BUILDING
-: TORONTO
Telephone Ade
aide 3870
niUUIIIIIIIIIIIIIDIIIIIIIIIUIIIIIIIIIIIUIIIIIIIIIIIIIIIilllilllllllllllllllllH
GOVERNMENT
AND
MUNICIPAL
BONDS
W. A. MACKENZIE & CO.
Covcrnment and Municipal Bonds
42 King St. West
TORONTO -:- CANADA
lilllllllllllllllllllllllllllllllMllllilllliillllllllilllllllllllllllliliillllllllllillllllH
THE MONETARY TIMES
Volume 66.
final analysis, however, it was found that the Dominion
Securities Corporation was the highest bidder by a small
margin over W. A. Mackenzie and Co. The first four bids
were very close..
Kegina P.S.D., Sask.— The school board has awarded its
$250,000 6V2 per cent. 30-year debentures to the Canada
Trust Co., and McLeod, Young, Weir and Co., at a price of
100.697. Tenders were asked for securities due in thirty
instalments, or at the end of thirty years, and payable
either in Canada or in New York, and the following offers
were received: —
Can. straight Can.
term. instal.
Canada Trust Co., and McLeod, Young,
Weir and Co . 100.697
Wood, Gundy and Co 99.646 98.86
Nay and James, and A. E. Ames and Co. 99.199 98.796
Canadian Debentures Corp 99.02
Dominion Securities Corp ^ 98.417 98.147
Harris, Read and Co., Housser, Wood and
Co., and Bell, Gouinlock and Co. .. 98.37
R. C. Matthews Co., and United Financial
Corp 98.11
A. Jarvis and Co 98.067 97.87
Brent, Noxon and Co 97.54
MacNeill, Graham and Co 97.09
W. A. MacKenzie and Co 96.00
No American bids were considered.
Saskatchewan. — There was good competition for the
$2,000,000 6 per cent. 15-year bonds of the province, and
owing to the good price reteived the provincial treasurer
decided to increase the issue to $3,000,000. Some of the
Canadian bids were published in these columns last week,
but the following is the complete list. It will be noticed
that there is only a small margin between bids for Am-
erican and Canadian payment:- —
Payable in
Payable in Canada or
Canada. U.S.A.
Dominion Securities Corporation,
Ltd., on behalf of Dominion Se-
curities Corp., Ltd., National City
Co., and Harris, Forbes and Co.. 97.637
Dominion Securities Corp., Ltd., and
Dillon, Read and Co 97.73
Wood, Gundy and Co., and A. E.
Ames and Co 97.63
Wood, Gundy and Co 98.63
J. A. Thompson and Co., A. E. Ames
and Co., and Halsey, Stuart and
Co 98.50
United Financial Corp., Ltd 96.83
Harris, Read and Co., Canada Bond
Corp., Ltd., and Canadian Deben-
ture Corp., Ltd 96.761
Macneill, Graham and Co 96.597
W. A. MacKenzie and Co., and R. A.
Daly and Co 96.53
W. A. MacKenzie and Co., R. A. Daly
and Co., and Hanson Bros 96.53
Brent, Noxon and Co 96.337
^milius Jarvis and Co., Wells,
Dickey and Co., and Merchants
Trust and Savings Bank, and
First National Co 96.80
Harris, Forbes and Co., Inc 95.63
-Emilius Jarvis and Co., Greenshields
and Co., Nesbitt, Thompson and
Co., and the Royal Securities
Corp 95.817
Received after opening of the
above tenders: —
Miller and Co., and Brandon, Gordon
and Waddell 99.10
Winnipeg, Man. — Wood, Gundy and Co. have been
awarded $750,000 6 per cent. 20-year bonds at a price of
97.89, which is on about a 6.19 per cent, basis. Tenders re-
ceived were: —
Wood, Gundy and Co 97.89
United Financial Corp., Ltd 97.84
Osier, Hammond and Nanton and A. Jarvis
and Co 97.82
A. E. Ames and Co. and Dominion Securities
Corporation 96.78
Bond and Debenture Corporation 96.33
Allan, Killam and McKay 95.53
Wood, Gundy and Co. also took an option on another
$500,000 at the same price.
NEW TORONTO BOND HOUSE
Announcement is made of the establishment of a new
bond house in Toronto, Ont., to be known as McLeod, Young,
Weir and Co. The four members of the firm, D. I. McLeod,
W. E. Young, Lt.-Col. J. G. Weir, and J. H. Ratcliffe, have
been associated for a considerable term of years with the
bond department of A. E. Ames and Co. All are well known
in local financial circles. The new company will specialize-
in government and municipal bonds, and has opened offices
in the McKinnon Building.
WESTERN EMPIRE LIFE ASSURANCE CO.
The Western Empire Life Assurance Co. has laid the
foundation for the upbuilding of what looks to be a healthy
and progressive business. Incorporated before the war, the
compa^ny was forced to go through its initial stages during
the world struggle and the readjustment period following,
but the experiences encountered, it seems, have added to
rather than adversely affected the strength of the organiza-
tion, and last year the first dividend of 6 per cent, was paid
on the called capital. The following figures a^re sufficient
evidence of the above remarks: —
1920. 1916. Increase.
Assets $ 653,116 $ 285,940 $ 367,175
Premiums 130,759 60,277 70,482
Total income 249,514 87,449 162,064
Insurance in force 5,481,464 2,703,768 2,777,695
MUTUAL LIFE ASSURANCE CO. OF CANADA
The Mutual Life Assurance Co. of Canada celebrated
its fifty-first year by breaking all its records for new busi-
ness. In 1920 new assurances issued amounted to $47,008,024,
being $6,382,368 in excess of the record figure of 1919. In-
come last year, including net premiums of $7,685,792,
amounted to $10,124,171, compared with $8,583,404 in 1919.
Surplus earned amounted to $1,657,104, bringing the total
surplus up to $5,018,680, as compared with $4,540,536 in the
previous year.
Death and disability claims were considerably less, being
$1,215,136, compared with $1,517,411 in 1919, while total pay-
ments were about $145,000 lower at $3,667,521. Expenses
and taxes were somewhat higher.
The record of the Mutual Life is among the best of those
submitted by Canadian life companies, and as the company
is conducted on a strictly co-operative basis, all policyholders
share equitably in its prosperity. The following figures tell
their own story: —
1920. 1919. 1913.
New business $ 47,008,024 $ 10,625,656 $14,412,962
Income 10,124,171 8,583,404 4,169,660
Total assets 42,847,277 .38,020,949 22,252,724
Business in force 206,627,728 170,706,305 87,392,026
P'ebruary 4, li)21
THE MONETARY TIMES
53
Government
Municipal Corporation
Bonds
Bought and Sold
Correspondence Invited
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX, N.S-
We beg to announce that we have moved our
office to
36-38 KING STREET EAST
where we are able to offer still better service to
our clients.
Please note that any of our departments may be
obtained by calling new telephone number
Main 7400
•» EST. 1888
INVESTMENT SECURITIES
36-38 KING STREET EAST .-. TORONTO
Western Municipal & School
Debentures
TO YIELD * 2
6%
7i%
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
INVITED
UNION TRUST BUILDING
WINNIPEG
ACCOUNT BOOKS
Loose Leaf Ledqers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quedity, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
Moose Jaw, Saskatchewan
STOCKS AND BONDS
INSURANCE
FARM LANDS AND PROPERTY MANAGERS
KERN AGENCIES
LIMITED
Privatb WtRBS TO WINNIPEG. CHICAGO. TORONTO,
MONTRRAL AND NEW YORK
IF you are not younger than 22 years
'• or not older than 41 years and in good
health, send for particulars of our famous
Money-Back Policy
Please state date of birth.
The Travellers Life
Assurance Company of Canada
MONTREAL, QUE.
Hon. GEORGE F'. GRAHAM. PresuUm.
MAHAN-WESTMAN, LIMITED
SUCCESSORS TO T. MEREDITH. LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. W. MAHAN J.A. WESTMAN
President Managing Director
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C. H. MACALLAY J. F. NICOLLS. Notary Fublic.
Reasonable
NEW JERSEY INSURANCE CO.
BALTICA INSURANCE CO.
PENINSULAR FIRE INSURANCE CO.
OTCEEFFE & LYNCH, OF Canada. Limited.
MARINE MANAGERS
Z Victoria Street TORONTO
54
THE MONETARY TIMES
Volume 66.
Corporation Securities Market
Canadian Stocks Show Reactionary Tendency — Paper Issues Depressed — Fort William Pulp Bonds
Offered— Several Other Companies Plan New Financing— Mount Royal Hotel Company on the Market
ONE of those reactions which frequently overtake a con-
fident market in the face of conditions which do not
warrant a rapid rise, made itself felt on the Canadian stock
exchanges this week. The nervousness was brought about
chiefly by a similar movement in Wall Street and depression
in the paper issues. Liquidation was not great, however, and
this helped to hold prices from falling too sharply. The de-
clines should be considered constructive rather than other-
wise, in that they will bring prices more into line with funda-
mental conditions, and thus give the market a firmer foun-
dation to work upon.
The falling off in papers was the most interesting feature
during the week, and the movement was ground for a good
deal of discussion. It is realized that paper prices must
undergo adjustment, just as other commodities have been
changed, and as some paper prices are already doing. No
one industry can escape the readjustment. The big decline
in Rioi'don. following the sharp advance of a week ago, was
the result of technical operations. The covering of shorts
drove the stock up to a level which it was hardly possible to
hold in the light of present conditions. The position of
Riordon, however, is very satisfactory, and the outlook is not
niai-red.
The position of New York stocks was to a slight extent
an influential factor here, but there are many events occurring
across the line which have no particular bearing on the situa-
tion in Canada. This week, contrary to the movement which
has been in progress for a few weeks, money became scarce
and the call I'ate went up to 7 and 8 per cent. The reason
for this is that the banks are carrying some weak companies
over the strain; and furthermore, American banking resources
are still engaged largely in the financing of foreign trade. In
addition, the government has been di'awing heavily on its
balances.
Trading figures show that the turnover of listed stocks
in Montreal was 49,272, as compared with 47,448 in the pre-
vious week, while the turnover of listed shares in Toronto
was 13,102, as against 14,930 previously. The increasing de-
mand for investment securities is reflected in the bond trad-
ing, which amounted to $1,900,360 in Montreal, as against
$1,607,200 previously, and $2,417,850 in Toronto, as compared
with $1,830,700.
New Financing
A great deal of new industrial financing is expected to
be completed within the next two or three months, and al-
ready several announcements have been made. The Spanish
River Pulp and Paper Company, it is understood, will issue
bonds for the construction of a new power plant. It is also
stated that the Montreal Tramways Company is completing
plans for financing large extensions and betterment to the
system.
An offering of $1,000,000 first mortgage 8 per cent, serial
gold bonds, issued by the Fort William Paper Co., Ltd., has
been announced in Montreal by Peabody, Houghtling and Co.,
Chicago. They are offered at par and accrued interest to net
8 per cent, on the investment. This is part of a total au-
thorized issue of $5,000,000, its purpose being to complete
a 120-ton groundwood pulp mill and to furnish working
capital. The bonds mature in ten instalments of IVa years
to 101-2 years, commencing with $40,000 and terminating
with $160,000.
The total assets of the company are placed at $3,140,000,
and the estimated earnings from the pulp mill are 36,000
tons of groundwood pulp at $120 per ton, amounting to $432,-
000. The interest charge on this would be $80,000, and the
annual reserve necessary to pay both principal and interest
of the issue, $146,896. The company has an issued capitaliza-
tion of $1,100,000 preferred and $4,000,000 common, the in-
corporation.having only been in August last.
Mount Royal Hotel
Next week, N. A. MacDonald and Company, Ltd., of
Montreal, Toronto and Ottawa, will ofl:'er publicly the unsold
balance of the $4,000,000 8 per cent, convertible debentures
of the Mount Royal Hotel Company. The debentures will be
issued in denominations of $100, "$500, $1,000 and $5,000.
Coupons will be payable quarterly on 1st of January, April,
July and October at the Royal Bank of Canada, Montreal, or
New York. The debentures are to be converted into 8 per
cent, preferred stock, fully paid and non-assessable, on Jan-
uary 1st, 1923.
Capitalization Changes
James Coristine and Company, fur merchants, etc., Mont-
real, Que., incorpoi'ated under the laws of the Dominion of
Canada, have been authorized to increase their capital stock
from $300,000 to $500,000 by the issue of 2,000 new shares
of $100 each.
The Monarch Lumber Company, Savona, B.C., operating
under a Dominion charter, has been authorized to increase its
caiptal from $1,000,000 to $2,000,000 by the issue of 10,000
new shares of $100 each.
Supplementary letters patent have been issued to the
Sunbeam Chemical Company of Canada, Ltd., Toronto, by
the Dominion government, authorizing the company to in-
crease its capital from $50,000 to $100,000 by the issue of 500
new shares of $100 each.
The 12,786 new shares of Consumers' Gas Company stock
recently issued, with a par value of $639,300, has been listed
on the Toronto Stock E.xchange.
UNLISTED SECURITIES
n. Jr.. & Co.. Tor
Alta. Pac. Grain... .com
" " " . . -pref
American Sales Book6*s
Brandr'm-H'ndes'n.com
British Amer. Assurance
British American Oil...
Burns. P 1st JVltge. 6's..
Can. Machinery com
6's
Canada Mortgage
Can. Oil com
Can. Westinghouse
Can. Woollens pref.
Cockshutt Plow ..com
" .7% pref
CollingwoodShipb-'dB.6"s
Crown Life Insurance..
Cuban Can. Sugar, pref
Uavies, William 6's
Dom. Foun. & Steel.com.
Pom. Iron* Steel S's 1939
Dom. Linseed Oil
Dom. Power pfd.
DunlopTire pref.
.6's.
Eastern Car 6's
Eastern Theatres., .com.
Goodyear Tire., pref....
G'rd'n,lronside&Fare6's
Harris Abattoir 6's
Home Bank
Imperial Oil
King Edward Hotel. com.
" ..7's.
Loews Ottawa ...com.
Manufacturers Life
Bid
Ask
91.50
99
SO
SB
64.50
70.50
70
84
89
88.50
92
90
97
83
90
11
16.50
65
74
80
88
95
98.50
103
108
lis
73
73
78
8
11
170
200
Marconi Wireless
Massey-Harris
Mattagama Pulp... pref.
Mercantile Trust
Mexican Nor. Power. .5's
Morrow Screw 6's
Murray- Kay pfd.
National Life
Neilson.Wm &'s..
North Star Oil .. ,. com.
Nova Scotia Steel 6% deb
Ont. Pulp... .6's
Page Hersey.. pref.
Peoples Loan & Savings.
Riordon.. com. (new stk.)
..pfd.
R, Simpson pfd:
Southern Can. Pow com.
Bia ,
Ask
2.25
100
■70
76
90
100
9
ri.50
84
88
60
69
150
86
92
4.70
5.10
71
80
93
96.50
84
*
70
25
31
80.50
85
76
19
80
24
Sterling Bank
Sterling Coal com.
St. Lawrence Sugar 6's..
Toronto Paper 6's.
Toronto Power. 5's (1924)
Trust & Guar
United Cigar Stores pref.
Western Assurance
Western Can. Pulp.com.
Western Can Pow. 5's..
Western Grocers. . pfd.
WhalenPulp com
February 4, 1921
THE MONETARY TIMES
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Years
to yield
1 lo7'^%
W t Specially) Recommend these Bonds as Sound Investments
W. Ross Alger & Coinpany
INVESTMENT BANKERS
Bank of Toronto BIdg.
EDMONTON
Royal Bank Chambers
CALGARY
The Bond House of British Columbia
WE ARE IN THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NE>V YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
McLeod, Young, Weir & Co.
-announce their establishment as
dealers in high grade Government
and Municipal
Offices :
McKinnon BIdg.
Toronto
Telephone
Adelaide 757
BONDS
D. 1. McLeod
W. E. Young
J. G. Weir
J. H. Ratcliffe
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches— SASKATOON AND CALOARY.
Canadian ManaRers
Investment Corporation up Canada, Ltd.
London Office: 4 Oreat Winchester St.. B.C.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank Bldg., Edmonton, Alta.
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
LOUGHEED & TAYLOR, Limited
l\ lES TME\ T SECLRI TIES
210 Eighth Avenue West
CALGARY
ALBERTA
P. M. LIDDELL & COMPANY
Investment Bankers. Fiscal Agents
Insurance Brokers
826-7-8 ROGERS BUILDING, VANCOUVER, B.C.
((
Th
e
M
onetary
T
imes"
«
II be sent vou for four mor
ir TRIAL SUBSCRIPTION p
ths
Ian
on
$ 1 .oo
Ju
St sen
d a
dollar bill and your na
n,e
and addrestf.
X
Vancouver District Property
Expert Estate Agents and Managers
Property Bought and Sold, Valued. Rented and
Reported on. Correspondence invited.
WAGHORN GWYNN Co., Ltd. v.n
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
MONTKKAl— Week Eu<le<l Feb. Sinl.
(Figures supplied by Burnett & Co.)
Abitibi P.*P...
Asbestos Corp..
Ames-Holden ..
.pfd.
.'.pfd.
!pfd.
Atlantic Sugar
Bell Telephone
Brazilian T.L.& Power
B.C. Fish
Brompton Pulp & P.-
Canatla Cement ■■■
...pfd
Can. Fairbanli
Canadiai
Can. Ste
Elec
hip ■
pfd
Con. Minings Smel..
Crown Reserve
Del Rys
Dom. Canners
Open I High Low , Close
55*
Dominion Bridge.
.pfd
Dom. Steel Corp.
Howard Smith
.pfd.
Illinois Traction pfd
Kaministiqua ... ..
Lake of the Woods..
Laurentide
LyallCons
Macdonald Co
Mont. Cottons
52i
MOMTIlEAl-Con*«nMed.
Bonds
67i
1 03 J
Dom. Cottons . ..
Dom. Canners. ..
Dom. Coal
Dom. Iron
Dom. Steel
Dom. Textile-...
Lake of Woods..
Mont. Power [ '^000
National Breweries .
Ogilvie Flour
Penmans
Price Bros
Quebec Ry.L.H.&P
Riordon
Sherwin-Williams.
Steel Co. of Canada
Wabasso Cotton
Wayagamack P. & P
inipeg Elec
.50001 925
3000 93 J
5200 89
TOUONTO— Continued
89i
pfd.
Montreal Power
Loan I
Tram Deb..
17400
20
13652
Telegraph...
National Breweries....
N.S. Steel PW
Ogilvie Flour Mills pfd
Ont. Steel Prod
Ottawa'.
Penmans.
Prov. Paper
Price Bro^
rrni'^uiuv.". .0-1 .-
Scotia ^:ii-,\
St. Lawrence Fl. Mill
72900l 77 78i 70
War Loans
)m.Can.W.Loan,1925
.. .. .. ,g3,
1937
ctory Loan 1922
1923
1927
1937
1933
1934
Sales
16700
16100
69100]
3S70OO
140200
34700
142050
409450
8678501
High Low I Close
94i
93i
975
983
97i
99i
98|
95i
96i
1924 . ^^. ,3357001
WISMIPEfe— Week endcil Jan. '.JBIti.
I 1922..
1923..
1924..
1923..
TOKOSTO— Week Ended Feb. 2iid.
.Stocks
Open I High
Atlantic Sugar
Abitibi ■•
Ames-Holden pfd.
Am. Cyan pfd-
Barcelona
Bell Telephone
Brazilian Traction. ...|
Burt, F. N
pfd.
I 45
40
.. pfd.
Canada Cement..... ..j 125
Canners ■■■
pfd.
Canadian Pacific R
Can. Gen. Elec. .■.•,■
...pfd.
Can. Salt
Canada Steamship...
pfd.
City Dairy pfd
Coniagas
Con. Gas
Dome
Dom. Tel
Duliith
Dom. Iron
Mackay Companies
610 13lJ
155 1031
1927.
1937.
" 1933,
'■ 1934
War Loan 1931 . . .
" 1937 . . ,
■' 1925 . .
Northern Trusts..
Standard Trusts..
North Star pfd
46350
48100
6450
6330
8300
41250
70200
4100
3200
"io
Open I High I Low j Close
98i 995 : I
9gi
100
983
500 I 500 I 500
SEW VOItK— Week ended Jan. agitd._
.pfd.
Sherwi
, Willi!
Shawinigan W.&P .
Spanish River ■
Steel Co. of Canada.
Toronto Ry
TookeBros........^.^.
Wabasso Cot-n........
Wayagamack P-S f.
Winnipeg Ry
Kanks
94}
571 250
1980
393
250 248 I 248
25 85
1 90
75
160
142
39J
39}
74
73
90
85
8H
85
90
90
108
106
S3i
794
914
89
64
63i
93
93
69
64i
57
55
46
■46"
82
80*
40
39* 1
Maple Leaf
.pfd.
Victory Bonds, 1924 . .
1922I..
1927 ..
1937..
1923..
1933..
Commerce
Hochetaga
Imperial
Merchants
Molsons
Montreal
Nova Scotia I "^
Nationale j^s
Royal
Standard
Toronto
Union. _..
Bonds
Asbestos Corp. _; .
Bell Telephone Co..
Can. Cement .•
Can. Rubber .,... •
Cedars Rap.dsMtg
CityMont.D«^6s,,92J
•■ Sept.6s,1923
Dom. Can.W, Loan, 1925
W3h 203*
19108
11843
28914
77008
275322
125205
21424
196738
11444;
121650
199J 1 201 j
N.S. Car
N. S. Steel
Nipissing..........^...
Porto Rico
Prov. Paper..
■ pfd.
Quebec R.L.H. & P
Riordon ■ ■ .
Rogers pfu'
Russell pfd. I
Salesbook pfd.
Sawyer- Massey \
pfd.
Smelters
Spanish River
..pfd.
Stan.Chem pfd.
Steel Corp
Steel Company
....pfd.
Toronto Ry
Trethewey
Tucketts
Tooke Bros pfd.
Twin City
Winnipeg Elec
Banks
Commerce
Dominion
Hamilton
mperial
Merchants
Royal
Standard
Toronto
Union..
10 1|
98
874
49
72i
60
1.95
1334
14.50
1.85
13lS
13.75
1.95
1334
14.30
Stocks
Canadian Pacific
Nova Scotia S.&Coal.
Granby Consolidated •
600
Bontis
Dom. of Can. 5% 1921 1000
54% 1921 98000
5% 1926 25000
' Sh% 1929' 60000
5% 1931 38000
Open High Low Close
1175 115
93i ' 9l4
New York Curb-
Canada Copper.
LONDON, Eng.— Week enileil Jan. l-iitb.
«ov'l. * Mnn.
87}
26
1521
85
60 , -. , _,
76i 764 765
914
28
-..., 451 .
120 634 64
.\lberta 4% deb. 1938..
4% debs..
Canada. 34% 1930 50..
•■ .... 4% 1940-60
•• .... 44% 1920-25
B.C. 44%
Calgary 5 o deb
Edmonton 5% bds. 23-53
Nfld.347obds
■• 4% 1895
Manitoba 5% 1888..
Montreal 44% Reg
3%
4% cons, deb
Ontario 4% Reg
Sales Open
3%.
500 191
96i 988
Loan and Trust
Col. Inv
Can. Land
Can. Perm
Land Bkg
Lon.&Can
Bonds
Dom, Iron
Rio. Jan. T., L, & P...
Sao Paulo
Steel of Canada
High Low
9300
52000
4000
Quebec 3%,
Regina5%cons.Reg
Saskatoon 596 1938..
Toronto 4% 1922-8...
4% debs. 1944-8
44% 1948 ..
Victoria 3J% 1921-6..
34% 1923...-
4% cons
54% cons...
Winnipeg 44% 1943-63
4% 1921-36.
Railways
Can. Nor. 4% deb. 1939,
" Ont. 4% deb.!
" Pac.4%deb.l
Calg'y«Edm.4%c. db.
Can. Pac X'^L'
•• 4% deb.]
•■ 4% pfd.
G.T.P. Br. 4% bd 1939.
G.T.P.3%bds
G.T. P.4%195S I
Or. Trunk... 4%guar.|
Gr.Trunk5%lst. pfd..
Gr. Trunk 5% 2nd pfd .1
Gr. Trunk 4% 3rd pfd.. I
Gr. Trunk 4% cons 1
Ont. & Quebec 5% deb.
P Gt. East.4*%deb.'42
Ind., Fin., Etc.
Can.Car7%pfd... , ..
Can. Cement 6% bds. . .
Can. West Lumber 5%
Kaministiquia P. 5% bs.
Can. Gen. Elec
Shawinigan Water...
Can. Bk. of Commerce
Bank Montreal
106*
6U
72i
905
64} 1
61
160 J
903
65i
70l
824
548
678
644
101*
1014
lot
101
62
62
824
824
105
105
114
114
40
394
43}
434
February 4, 1921
THE MONETARY TIMES
Corporation Finance
Canadian Pacific Railway Net Earnings for 1920 Exceed Previous Year by a Small Margin-
Break in Silk Prices Affects Belding, Paul, Corticelli Profits— F. N. Burt Reports Good Year
Loew's Theatres of Canada.— The proceedings for the up $90,856, against two years' payments made in 1919,
completion of the merger of tlie various Loew's companies in amounting to $121,142. These deductions leave net profits
Canada have been delayed for the present, according to an available on the outstanding common stock of $749,500, of
anouncement, pending the securing of certificates from the only $30,429 against $210,325 a year ago. The 1920 net is
auidtors, showing exactly the existing assets and liabilities equal to 4.05 per cent, earned on the common stock, against
of the various companies. 29.3 per cent, the previous year.
Twin City Rapid Transit Company.— The total operating The company has survived the big break in prices, and
revenue of the company in 1920 was $12,986,406, as against the balance sheet shows a satisfactory position. Net working
$11,442,444 in 1919, an increase of $1,543,961, or 13.49 per capital is somewhat lower, but is subtsantial. Principal
cent. At the same time the operating expenses were increased figures are as follows, with comparisons-
from $8,445,058 in 1919 to $9,794,834 in 1920, an increase of • j^g20 1919
15.58 per cent. The gross income in the past year advanced Pronertv $1 227 167 $ 999 980
from $1 ,922,081 to $2,144 397, and the net income transferred Investments' '. ' .' .' .' '.'.: 10;376 66;550
to profit and loss from $788,352 to $999 099. ^^^^^^^ ^^^^^^ 2,336,010 1,500,216
The earnings of the company for the year 1920 after ^^^^^^ liabilities 1,599,432 639,876
paying all expenses and making proper allowances for de- g^^^^ ^^^^ ^^ 5g gg
preciation, were sufficient to wan-ant the directors in declaring Surnlus 363 565 338 136
a dividend of 3 per cent, for the year upon the common stock, inventories '. ' '. ". '. '.'.'.'. '. '. '. '. '. \,50i,2U mQ.5%5
payable January 3, 1921. The regular quarterly dividends on ^ „ ., „ , ,• , , •
the preferred stock at the rate of 7 per cent, per annum were Canadian Pacific Railway.-Barely exceeding the showing
declared and paid °^ ^^^^- ^^'^ Canadian Pacific Railway closed 1920 with net
Pressed Metals Company of Canada— At the meeting earnings of $33,153,044 for the year. A resume of the com-
of the company in Toronto this week shareholders received Panv's operations for the twelve months shows a steady in-
new assurances of progress made in connection with the crease in gross earnings from nearly $14,000,000 in the first
process of making bushings, which is the company's chief two months to nearly $25,000,000 in October, which proved
product. J. W. Leighton, inventor of the bushing, explained to be the biggest month of the year. In November the gross
to the gathering that he had invented a new process which, fell to $23,799,146 and in December to $20,604,167.
he claimed, was much more satisfactory, in that it reduced The operation expenses of the road, however, did not
the details of the process materially, and made for an almost show the same uniformity and net earnings in consequence
perfect product, according to tests "so far made, as compared did not always show up as the gross. During the first two
with heavy rejections through defects under the old method. months net showed a substantial decrease from the cor-.
This improvement had been reached since the opening of the responding months in 1919. In March, April and May net
factory at Marysville, Mich., last autumn, and, from the favor showed up better, but fell away again in June to September,
with which the bushings were received by the Ford Company In October the best comparison with the preceding year was
of Canada, there was reason to believe that it would be in shown. Not only was gross a record for the year, but net
good demand fi-om other motor manufacturers when the in- was a record and showed an increase of 2V4 millions over net
dustry revived. The financial statement, covering the past in October the preceding year. The last three months of the
year and ten months, showed that no pi-ofit had been made. year showed both gross and net substantially above a year
F. N. Burt Company. Ltd. — The annual report of the ago, but down from October,
company for the year ended December 31 last, shows profits The following figures show the total results for 1920:—
of -$842,712, compared with $795,714 in the previous year, the 1920. 1919. Increase.
profits having been arrived at, as President S. J. Moore Gross $216,641,349 $176,929,060 $39,712,289
points out, after writing down inventories to present replace- Expenses 183^488,304 143,996,023 39,492,281
ment values, the shrinkage having been charged off in the :
year's operations. j^g^ j 33,153,044 $ 32,933,036 $ 220,008
Taking advantage of the conversion privilege, a large .«„,„„,, „,« j , t j a.iQo
block of preference stock has been converted into common, Fi'om total earnings of $216,641,349 were deducted $183,-
the common stock now amounting to $1,278,700, compared 488.304 in operating expenses, leaving net earnings for the
with $858,500 a year ago. while the preferred has been re- year at $33,153,044, an increase of barely a quarter of a mil-
<luced to $1,476,500 from $1,866,700. The inducement was, lion over the previous year. Detlucting the) 1919 fixed
of course, the increase in the dividend on common from 8 to charges, amounting to $10,161,510, pension fund of $500,000
10 per cent, on October 1 last. Dividend payments on both and preferred dividend of $3,227,276, the balance left for
classes of stock an-ounted to $214,132. or about one-third of application to the common stock amounted to $19,2fc4,<!58
the year's profits. All dividends were paid in New York which was equivalent to 7.4 per cent., as compared with 7.3
fy„j)g per cent, the preceding year, the fraction above the coni-
Even after writing down, the company's inventory is pany's dividend requirements, the remaining 3 per cent, of
still higher, merchandise amounting to $1,186,587, compared the 10 per cent, dividend being payable out of special income,
with $991,609 a year ago. The profit and loss balance car- Gross and net earnings back as far as 1910, show the
ried forward is $984,857, as against $713,044, an increase following interesting results :—
of $271,000. Quick assets have increased from $1,671,710 to 1920 $216,641,349 $33,153,044
$1,938,003, while current liabilities were reduced from $676,- 1919 176,929,060 32,933,036
021 to $5.'S9,948. 1918 157,537,698 34,.502,387
Relding, Paul, Corticelli. Ltd Adverse conditions in the 1917 1.52.389,334 46,546,018
silk trade are reflected in the annual statement of the com- 1916 139.729.687 50,476,499
pany. Profits in 1920. after all manufacturing, selling and 1915 109.397.246 43,525,235
administration expenses, were $262,153, down from $429,260 1914 110,466.785 34,788,067
in the 1919 year, .\fter deduction of depi-eciation, debenture 1913 141,155,657 46.326,160
interest, discount on debentures and making an extraordinarj- 1912 134,279,363 45,959,144
charge of $."iO,000. a balance of $121,285, against $331,467, 1911 110,946,516 38,553,520
remained available for dividends. Preferred dividends took 1910 100,851,629 36,386,780
THE MONETARY TIMES
Volume 66.
Mortgage Loan Situation
Pressing for Solution
Mr. W. E. Rundle Points Out to National Trust
Shareholders the Bearing of Scarcity of Capital
on Country's Requirements for Farm and
City Mortgage Loans — Exchange
and High Interest Rates Make
Importation of Capital
Impossible.
That the mortgage loan situation has become of na-
tional importance was a view expressed by Mr. W. E. Rundle,
General Manager of the National Trust Company at the
Annual Meeting of Shareholders on Wednesday, February 2nd.
Mr. Rundle said: —
When addressing you a year ago I called your attention
to a problem which, in my opinion, was then looming large
on the horizon, and one which bid fair to assume national
importance. The problem was as to where Canadians were,
in the immediate future, to get money for farm and resi-
dential loans in view of the war having completely cut them
oflf from one of their principal sources of supply — Britain
and Europe. The passing of the last twelve months has
served to emphasize the importance of this question. Our
cities and towns are woefully short of houses. For many
years the demand throughout Canada for farm loans has
not been as great as it is to-day. , Even in the Province of
Ontario, where for some years the lending companies have
experienced difficulty in placing farm loans, a striking
change is taking place.
Before the war many farmers in Ontario who had money
to lend placed it out on Mortgage to those of their neighbors
who desired to borrow. It is well known that due to the
educational effect of the Victory Loan Campaigns during
the war, those who live in the rural districts of this pro-
vince have become purchasers of bonds to no inconsiderable
extent. If my recollection serves me aright about one-half
of the amount subscribed in the last two Victory Loan Cam-
paigns was taken by the people of the Province of Ontario;
and of the amount subscribed by Ontario a goodly percent-
age was contributed by the rural population. If this
tendency to invest in bonds continues — as it probably will — ■
the farmers ai-e likely to have less to lend on Mortgage than
formerly, and those of their number desiring to borrow will
doubtless return to the lending companies which twenty
years ago were the Ontario farmers' only source of supply
for Mortgage Loans. The companies must be prepared to
meet the demand.
Canada Must Supply Capital for Farm and City Building.
It is well recognized throughout the world— and Canada
is no exception — that if the several countries are to compass
their debts and obligations incurred by the war they must
develop to the utmost their natural resources and their vari-
ous industries. Agricultural pursuits are followed by at
least -lO'^f of the Canadian people. Agriculture is Canada's
greatest single industry. Our agricultural possibilities are
limited only by the men and money we can find for them.
Our manufacturing industries, which mean so much to the
country and are capable of great expansion, must see to it
that their work people are properly housed in order to be
efficient in their work. Already there are abundant signs
that whatever immigration Canada may desire to help de-
velop the country, and of whatever texture, will be available
both from Europe and the United States. There will be no
lack of men. But it is not so easy to see where the neces-
sary supply of Capital is to come from in the near future,
especially for mortgage Loan purposes. There is no doubt
that very large sums in the aggregate have had to be repaid
to Great Britain and Europe by Mortgage lending companies
during the last year. How long this movement will con-
tinue it is difficult to say. International exchanges are so
demoralized that it will take some time to re-establish
them. No one can say how long, although all are free to
guess. The fluctuations in exchanges during the last year
have been so great that even if for a period they were to
approximate more noi'mal conditions the uncertainty of their
continuance and their susceptibility, while Europe is in its
present condition, to sharp reactions will tend to deter an
early re-establishment of pre-war relations. Moreover, it
is abundantly clear that Europe in its present state has
little, if any, surplus Capital for export, but on the other
hand has a crying need in the reverse direction. This is one
of the main reasons why she is at present unable to get
upon her feet.
.Scarcity of Capital Remains. Even if Building Costs Drop.
In emphasis of the need for Mortgage Loan monies, it
has been estimated that it would require from fifteen to
twenty million dollars of Mortgage Loan money to assist in
providing the dwellings necessary to properly house the
jiopulation of the City, of Toronto alone. A great deal is
heard nowadays about the stimulation which would be given
to the building trade if prices of material and costs of
building were to take a substantial drop. This is, no doubt,
true. But I venture to think that unless some soui'ce of
supply for Mortgage Loans, which is not now in sight, is
found there will be great disappointment in building activi-
ties even should the cost of building materially fall. The
situation in Toronto is but typical of that which prevails
throughout the whole Dominion. Like most problems it is
easy to point out the difficulties. It is not so easy, however,
to construct a way out of them. But when a question
assumes national proportions, as the question does which we
are now discussing, the people will insist on a way being
found. Some solution of the Mortgage Loan situation must
be forthcoming.
Companies Must Share More in Liquid Funds.
We have made this question the subject of much ex-
amination and study, and I submit that the practical solu-
tion of the difficulty must come largely through the Com-
panies— Trust Companies and others — which society in Can-
ada has so far evolved for meeting Mortgage Loan needs,
obtaining a larger share of the liquid funds which are
available in Canada itself. It is unfortunate that Canada
is shut out from her old sources of supply for Mortgage
Loan money. But she is. It is a practical situation Which
has to be met and not a theoretical one, and no one I think
will hold in the national interest — aside altogether from the
interests of the Companies themselves — that those who need
money to assist them in the unbuilding of their farms and
their homes should be denied their rightful participation in
a fair share of the country's liquid resources.
COBALT ORE SHIPMENTS
The following are the shipments of ore, in pounds, from
Cobalt Station for the week ended January 28th: McKinley
Darr., 80,654; La Rose Mine, 88,073; total, 168,727. The
total since January 1st is 66.5,028 pounds or 3.32.5 tons.
"Letters from the Front," Volume I., has been issued by
the Canadian Bank of Commerce.
G. A. Stimson and Co., investment brokers, Toronto, who
have for some time past occupied premises in the Union Bank
Building, are moving their offices, and will occupy the ground
floor of 36-38 King St. East.
February 4, 1921
THE MONETARY TIMES
59
National Trust Company
Limited
PROFIT AND LOSS ACCOUNT
Fpr Year ending 31st December, 1920
Hal.iiicc 31st Dei-eiiiber. 1919....
I'reuiium on New Stock Issue
Nri Profits for the year, after deductlne cost of Man-
Appropriated as Follows:
Quarterly Dividends : Nos.
10% per annum ; Nos.
12% per annum
Transferred to Reserve Fund.
To provide for Dominion Income AV;i
Balance farried Forward
$185,231.83
400,000.00
IT.800.03
S4.417.31
BALANCE SH
ASSETS
Capital Account:
llttiic Premises and Sjlc Deposit Vaults
111 Toronto. Jlontreal. Winnipeg, Kegina,
.-iasliatoon and Kdmonton $ 430,739.59
Keal Kslate held for sale niiil.r inurtt.it'c
lureclosure 77.829.34
Itinls due and accrued 4,523.46
MiirtgaKCs— Principal, Ini. i
i-rucd -... 2.007.225.42
Loans on Stocks and Bon. Is 280.891.93
Securities — Dominion of Canada, Provinces
of I'anada. Canadian Municipalities,
!<rliool District Debentnr.s :ili.l Dllier
Bonds. Debentures and l' - l.< 632.425.20
Stocks 303.700.43
Cash in Cliartered Bank 317.485.32
Casli on Hand 8,741.40
.Vclvances to felales aiul Ti lists 215.952.37
$1,277.
Guaranteed Trust Account:
Mortgages — Princl|>al. Interest due and. ac-
crued $4,084,215.64
Loans on Bonds 348,400.00
Securities— Dominion of Canada, Provinces
>>t' Canada, Canadian Municipalities,
School District Debentures and Olber
Himds, Debentures and Debenture Slocks 601,159.70
I ,ish In Chartered Banks 320.989.88
< ash in Hand 34,455.58
5.387.
Estates, Trusts and Agency Account:
KuMiN MMd Investments $84,726,290.34
84.726.
$94,390.
1 \V. KL.VVELLE,
President.
.^Ist DECK.MBEK, l''2(l
LIABILITIES
Capital Account:
IMpltal Stock Fullv Paid -... $2,000,000.00
Heierve Fund - •.- 2,000,000.00
Special Heserve for new Branches — 50.000.00
Dividends declared and I'npald Dividend
No. 84 due January 3, 1921 - 57,183.09
51ortgages In Process of Completion 54,989.26
1 Reserve for Balance Dimilninn Income War
T-,ix 30.624.80
Proitt and Loss . ' ^-^'^-^l
Guaranteed Trust Account:
Trust Funds for Investment $3,085,061.98
Trust Deposits - 2.302,138.82
Estates. Trusts and Atency Account:
Kstatcs. Trusts and Agency Account $84,728,290.34
290.31
705.60
84,728.290.34
E. RUNDLE,
General Manager.
BOARD OF DIRECTORS:
President: SIR Joseph Flavelle, Bart.
Vice-Presidents: E. R. Wood, W. E. Rundle, H. C. Cox
Hon'. Sir Edward Ke.mp, K.C.M.G.
h. h. fudger
Chester D. Massey
H. B. Walker
J. H. Plummer
Hon. F. H. Phippen. K.C.
Henry J. Filler
T. B. Macaulay
W. M. BIRKS
E. M. Saunders
Sir John Aird
Thomas Findley
James R'i'RiE
F. W. Harcolbt, K.C.
Rt. Hon. Sir Thomas White,
K.C.M.G
Harrington E. Walker
Miller Lash
Norman J. Dawes
Leighton McCarthy, K.C.
Carl Riordon
A. McT. Campbell -
Sir Douglas Cameron K.C.M.G.
Kenneth Mackenzie
George W. Allan. K.C M.P.
Edward Fitzgerald
60
THE MONETARY TIMES
Volume 66
RECENT 1' I R E S
Forum liuilding', Toronto, Stovel Building, WinnipeK, and
Billiard Parlors in Halifax were Destroyed with Loss of
$100,000 Each— Four-story Building in Ottawa
Destroyed with Loss of $70,000
Beauceville, Que. — January 26 — The store of Jean Poulin
and neighborins' houses were damaged by fire. The loss is
estimated at $20,000.
Bedford. Que — January 28 — Damage estimated at $8,000
was caused by a fire which destroyed the post-office and the
Serland Garage.
Belleville, Qnt. — January 26 — A frame and roughcast
dwelling situated on the east side of James Street, occupied
by John Potts, was damaged by fire. The loss is covered by
insurance.
Brookville, N.B. — January 26 — A cottage and barn, the
property of H. G. S. Adams, and occupied by A. W. Harvey,
was destroyed by fire. The loss is $4,500, with $1,200 insur-
ance.
Callander, Ont.- — January 24 — Wilson's grocery store, Dr.
Shaw's drug store and the Hydro-Electric power line from
Nipissing were destroyed by fire.
Cardston, Alta. — January 25 — Residence of Mrs. Wolsey
was destroyed by fire. The total loss is $2,600, with no in-
surance.
Cooksville, Ont. — February 2 — Turnei-'s garage, the pool-
room and the barber shop were destroyed by fire. The blaze
was caused, by an overheated stove. The total damage is esti-
mated at $10,000.
Edmonton, Alta. — January 27 — A two-story building,
opposite the Fairview Hotel, was destroyed by fire.
Fauquier, Ont. — January 26 — Two children of Post-
master J. A. Daigle were burned to death in a fire which
destroyed the post-office. It is believed the children had been
playing with matches.
Halifa.v, N.S. — February 3 — Fire, believed to have been
caused by an explosion, did $100,000 damage to the Olympic
Billiard Parlors on Gottingen Street.
Holland, Man — January 28 — Fire started in the rear of
F. E. Campbell's drug store and completely destroyed the
Holland Estate Block, ccmprising Campbell's drug store,
A. S. Ole's general store and two lodge halls. The loss is
partly covered by insurance.
Indian Lorette, Que. — January 30 — The Armand Bastien
factory was destroyed by fire with an estimated loss of
$60,000.
Kingston, Ont. — January 28 — Residence of Patrick
Byrnes, 259 Queen Street, was destroyed by fire. There were
three fatalities.
Casualty Insurance Man
Experienced, wanted for Head Office work,
particularly agency development and claim
adjusting. Good salary to the right man.
Apply, stating past experience,
"CASUALTY"
Box 391, Monetary Times, Toronto.
London, ()nt. — January 31 — Residence of Jas. H. Glover,
519 Bathurst Street, was destroyed by fire. The fire was
caused by an overheated stove. There were four fatalities.
Meacham, Sask. — January 23 — Residence of Mr. Hale-
schuk was destroyed by fire. One fatality.
Montreal, Que.- — January 27 — The plant of A. Hollander
and Son, 64-66 Queen Street, was destroyed by fire. The loss
is partly covered by insurance.
Odessa, Sask. — January 27 — Fire, which started from a
gasoline explosion in the poolroom and barber shop of A.
Nillius, did $1,000 damage.
Ottawa, Ont. — January 29 — A four-story building, occu-
pied by the Sach Bros, on Queen Street, was destroyed by
fire. The loss is estimated at $70,000, of which $6,000 is cov-
ered by insurance.
Ridgetown, Ont. — January 28 — Barns on the farm of
David L. McDonald were destroyed by fire. The loss is esti-
mated at $7,000, partly covered by insurance.
NEED FOR MORE MONEY TO LOAN
The directorate of the Toronto General Trusts Cor-
poration was re-elected at the annual meeting held on
February 2nd. The president, Hon. Featherstone Osier, said: —
"We have much to encourage a reasonable optimism, and if
only you learn to discourage extravagance, to promote
economy and thrift, home production and buying, we may
look at the future with confidence. Lean years may, and, in
the cycle of change, must come; perhaps they are necessary
to teach us the lessons I have suggested, for few seem
willing to learn them just now." :
In reviewing the corporation's year, A. D. Langmuir,
general manager, mentioned that an office had been pur-
chased for the Vancouver branch at a cost of $100,000. The
demand for mortgage loans had been a steadily increasing
one during the year, particularly in the west, but loaning
operations would have to be considerably curtailed on ac-
count of the present difficulty in obtaining funds at a rate
which would leave a reasonable margin of profit. While
mortgage rates had increased in Ontario from 6 to 7 and
7% per cent, in some instances since 1914, there had been
no increase in the west, where the rate was still 8 per cent.
GENERAL INSURANCE AGENCY and Brokerage office
requires the services of clerk (either sex), capable of attend-
ing counter. Must have had some fire insurance experience.
Box 389, Moftctnry Tinu's, Toronto.
NATIONAL TRUST COMPANY ANNUAL MEETING
At the annual meeting of the National Trust Co., held
on February 2, three new directors were elected, namely,
Leighton McCarthy, K.C., Toronto; Carl Riordon, Montreal,
and Edward Fitzgerald, Winnipeg. Herbert C. Cox, who
has been a director for several years, was made vice-presi-
dent. Another change was the elevation to the position of
directors of the members of the Winnipeg advisory board
of the company, comprising Sir Douglas Cameron, K.C.M.G.,
A. McT. Campbell, Kenneth MacKenzie and George W.
Allan, K.C., M.P., all of Winnipeg. The three new direc-
tors first named replace Justice Britton, Elias Rogers and
-Alexander Bruce, K.C., who passed away during the year.
Sir Joseph Flavelle, president, in a review of financial
conditions during the past year, appealed for greater pro-
duction as a means of bringing better times. "It should be
understood," he said, "that cheaper agricultural products,
cheaper raw materials, call for lower cost of production, in-
cluding labor, lower cost of supplies and lower profits to
manufacturers and merchants. If two tons, or two pounds,
or two yards, or two articles can be purchased by the con-
sumer for the recent cost of one, there will be added com-
fort to the buyer, added orders from other nations, and added
employment to the worker. Labor, when well employed,
establishes liberal production. Liberal production, to be
absorbed, calls for prices within the consumer's resources.
There cannot be work for all, unless the prices of commodi-
ties keep step with the available cash resources of consum-
ers at home and abroad."
iTl'LliUKD 1-:\FR\ FlUliAV
The Monetary Times
Printing Company
uf Canada, LimiteJ
PiiWisl.tr-. 3K.1 ,,f
"The Canadian Engineer"
Xb^i
Trade Review and Insurance Chronicle
of Canada
Established 1861
Old as Confederation
JAS. J. SALMOND
President and Genei-al Manager
A. E. JENNINGS
AsaiBtant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
Increase in Workmen's Compensation Proposed
Payments Would be Still Further Increased by 100 Per Cent. Proposal
Made in Ontario — 1920 Results Show Rapid Growth of Operations —
Manitoba Now Has Public System, While Adoption in Quebec is Probable
ABNORMAL increases in the number of industrial workers
and in wage scales during the past few years have
combined to enlarge the financial operations of provincial
workmen's compensation boards in Canada. In addition to
this the scope of the acts in some provinces has been ex-
tended by including more classes of workers, and in Ontario
last ye&r the maximum rate was increased from 55 per cent,
of wages to C673 per cent. 1920, therefore, found payments
and assessments greatly increased.
Ontario was the first province to change from the old
system under which the workmen compelled payment through
the ordinary law courts. Since the Ontario Act of 11114 v;as
passed, Nova Scotia, New Brunswick, British Columbia, Al-
beitE- and Manitoba have adopted similar legislation.
The adoption by Manitoba, on January 1, of a state
workmen's compensation system, leaves only Quebec,
Saskatchewan and Prince Edward Island with private
companies operating in this field. Workmen's com-
pensation has been operative in Manitoba since 1919, but the
employers have hitherto dealt with the insurance companies,
whereas from this year they will deal directly with the
body representing the state, the Workmen's Compensation
Board, which will maintain a common accident fund, out of
which compensation payments and the cost of administration
will be met. Under the new act the compensation to be paid
to a worker for total disability is 66% per cent, of his wages.
In the event of dec.th the widow will get ^30 a month until
she dies or remarries, and, in addition, she will be allowed
$7.50 for each child up to the fourth, the maximum allowance
thus being 500 a month.
Increase in disbursements under the Manitoba Workmen's
Compensation Act during 1920 totalled $97,863, or 49.6 per
cent, more than in 1919. Disbursements during the year
amounted to $295,221, as compared with $197,357 during
1919. There were 3,920 accidents reported to the board, an
increase of 38.56 per cent, over 1919.
Ontario Results for 1920
In Ontario there was a large increase in the number of
accidents dealt with, and an even larger advance in the sum
paid in compensation, due to greater benefits having been
provided for. A total of 54,851 £>ccidents were reported to
the board during 1920. This was 10,591 more than in 1919.
Fatal accidents reported during 1920 were 452, as against
429 in 1919, being an increase of 23. The daily average was
183 accidents, or one accident every three minutes of the
working day.
The amount awarded for compensation during the year
was $7,076,439. and the amount' for medical aid $703,705,
making a total of $7,780,145, as against a total of $4,192,859
during 1919, and $3,883,994 during 1918. The increase is
largely by reason of the larger benefits provided for under
the amendments to the ^■ct, including the increase in death
pensions for accidents happening in previous years. The
total number of cheques issued by the board during the year
averaged 494 per day, and the benefits awarded $26,000 a day.
About half a million workmen are now under the pro-
tection of the act, r.nd, including the pensioners from former
years and the families of workmen and pensioners, it is esti-
mated that over 100,000 people every year are receiving some
part of their maintenance from the benefits provided for by
the act. The total yearly wage roll of industries covei'ed
by the act is estimated at $450,000,000.
British Columbia
There were 20,508 accidents in all industries in British
Columbia in 1920 up to December 23, according to a state-
ment by E. S. 11. Winn, chairman of the Workmen's Com-
pensation Board. This number is 2,323 in excess of the total
for 1919. The number of fatal accidents was 197, while in
1919 195 deaths occurred. The total amount of money paid
for compensation, pensions, widows' pensions and medical
aid was $1,981,755, while the 1919 total- was $1,323,990.
During 1920, as in 1919, logging was the most hazardous
occupation in the province, logging claims for compensation
numbering 4,377.
The figures prepared by Mr. Winn show that the payroll
in the indu.stries of the province totalled in 1919 $126,829,760,
and the number of men employed was 109,227. For eleven
months of 1920 the total paid in wa-ges was approximately
$130,000,000, and the number of men employed was 112,000.
Results in New Brunswick
In the province of New Brunswick the total number of
claims reported wei-e 5,012 made up as follows : —
Temporary disabilities 3,419
Permanent partial disabilities ... 255
Deaths 49
Claims partially disposed of and in process
of assembly 448
Claims (minor accident in which no compensa-
sation was paid) S41
Total
'.or.
The amounts paid out for —
Compensation ■• $17u,.)'J2
Medical aid ■ 19,911
Hospital fees . 9.'?04
Pensions "•"i.Oi;;)
Set aside in pension reserve - " .TOG
The gross administration expenses wc-re. .■>4;>,074 less the
amount paid by Dominion and provincial government $5,631,
leaving a net cost to the employer of the province of New
Brunswick of $37,442.
Estimated income for 1920 will be about $558,000.
The Association of Canadian Workmen's Compensation
Boards, at its annual meeting held early in October last,
THE MONETARY TIMES
Volume 66.
adopted recommendations for still further enla^rging the scope
of the work, as follows: —
"Resolved that this Association interpret Section 1 of
Chapter 15-8-!) George the Fifth, as meaning that all em-
ployees of His Majesty in every department or branch of
the service, without regard to the nature of the service, shall
be entitled to compensation in case of personal injury by
accident arising out of and in the course of his employment,
and that the Dominion Government be requested to so amend
the said Act as to give effect to the foregoing interpreta-
tion.
"That where necessary, legislation be obtained to bring
into being accident prevention legislation, and that its en-
forcement be vested in the various Workmen's Compensation
Boards.
"That the Association is of the opinion th&t the collective
liability system is a much better form of Workmen's Com-
pensation law than the individual liability law, and that no
workman or dependent should be left to depend upon the
solvency of the individual employer for payment of pensions
or other compensation.
"With the view to obtaining uniformity as far a-s possible
in Workmen's Compensation Laws, we recommend for adop-
tion to their respective governments, the following provisions
where such do not already obtain: 1. That compensation other
than in fatal cases be computed on the basis of a percentage
of the workman's earnings. 2. That in case of death or injury
the provinces should adopt a uniform scale of compensation.
3. That as far as practicable the benefits of the provincial
Workmen's Compensation Acts be extended to all workmen.
4. That the scope of provincial Compensation Acts be ex-
tended so &s to include all employees of provincial govern-
ments and municipalities, including police and firemen. 5.
That medical and surgical aid, hospital and skilled nursing
services, and such artificial members and apparatus as may
be neeess&ry as a result of the injury shall be provided free
to the workman during the period of his disability. 6. That
the various Compensation Boards be empowered to make
rules and regulations for, the prevention of accidents, and
that employers be required to install first-aid service and
equipment in their plants. 7. That where under any Com-
pensation Act &n employer has the right to elect to bring
his industry under the provisions of the Act, the employees
shall have the same right where the majority so elect."
The next annual meeting of the association is to be held
on October 3, 1921, in St. John, N.B.
The 100 Per Cent. Movement
A movement is now on foot in Ontario to extend the rate
of payment to 75 per cent. At the last session of the leg-
islature, when the increase from 55 per cent was effected,
a vigorous effort was made to h&ve it raised to 75 per cent.,
resulting in a compromise at 66% per cent. Organized labor
in the province has a far-reaching program, including: —
(1) They will attempt to have the Workmen's Com-
pensation Act pay 100 per cent, instead of 66% per cent, at
present, and the incre&ses shall be retroactive to July 1,
1920. The increase from 66% to 100 per cent, will involve an
increased cost of $3,000,000.
(2) There will be an attempt to provide old-age pen-
sions. No details at present.
(3) Legislation for unemployment insurance will be
strongly advocated for by a certain section of organized
labor.
The proposal of one responsible leader is that boards
shall be established throughout the country to ascertain the
nominal working- conditions and number of employees in each
factory during good times, and, in the light of their findings,
there should be levied an assessment similar to that levied
under the Workmen's Compensation Act, in order to have
some incentive to limit the amount of unemployment. To
quote the words of the labor leader in question: "Employers
should be assessed according to the number of men they lay
off."
In Quebec an effort is also being made to have public
workmen's compensation adopted.. Labor men are asking
that a commission of three men be appointed and that the
act apply practically to all classes of labor. The only classes
they wish excluded are domestic servants, farmers and ex-
ecutive officers, while they insist particularly on the inclusion
of firemen and other municipal employees. It is understood
that the attitude taken by employers officially at Quebec will
be to ask that no action be taken at this session, and that a
decision be deferred until labor conditions become more stab-
ilized. On the other hand the government may decide to
commence an inquiry into the advisability of such legisla-
tion as is proposed, in which event no action would be ta-ken
naturally until a subsequent session.
MANITOBA LEGISLATURE NOW IN SESSION
Housed in Ten Million Dollar Structure — General Improve-
ment in Western Business — Indications of
Building Activity
(Staff Correspondence.)
Winnipeg, February 10, 1921
THE thirty-third annual bonspiel is in full swing in Winni-
peg this week, and curlers are gathered in the western
metropolis from all over Canada, and from points in the
United States. This makes business somewhat more active,
as many country merchants are included in the visitors, and
this is the time of year they place their spring ordera.
Wholesale business is, therefore, fairly active, and it is ex-
pected that during March business will show a still greater
improvement.
Building this year in the west is expected to be fairly
heavy. From many sources it is learned that there will be a
continued downward tendency in the price of commodities
and a reduction in wages of labor may be anticipated in some
quarters. The prices of material are also expected to be
lower. There does not seem, however, to be any great over-
production in building material, while the demand will neces-
sarily increase as the building season opens up. It is not
expected that the 1921 season will show any great decrease
in building costs, but there is undoubtedly a downward ten-
dency.
The Grain Situation
The latest report of the Northwest Grain Dealers' As-
sociation issued this week gives the following figures of the
grain situation in the three western provinces. The total
crop is placed at slightly over two hundi'ed and eighteen mil-
lion bushels, showing a reduction of about twelve millon
from the previous report. Wheat in farmers hands still
to market is given as only twenty four million bushels.
New companies with a total capitalization of eight mil-
lion dollars were reported this week from the provincial
secretary. The most important being the Canadian Mining
and Leasing Corporation capitalized at five million dollars,
and the Prairie Cold Storage Corporation, capitalized at two
million dollars. The Continental Credit Coi-poration, four
hundred thousand dollars, and the Western Sales Book Co.,
three hundred and fiftv thousand dollars.
The Manitoba legislature assembled this week and met
for the first session in the palatial new parliament buildings,
the total cost of which have been in the neighborhood of ten
million dollars. These new buildings now fully completed,
are reported from many sources to be the finest of any on
the North American continent.
Holders of participation certificates who did not sur-
render them to the Canadian Wheat Board on or before
December 31, 1920, will -be given another chance to redeem
them, according to a statement issued by the board on
February 9. Producers and others still holding the'se certifi-
cates are requested to surrender immediately same to the
board, when due consideration will be given to the matter of
making payment thereon.
February 11, 1921
THE MONETARY TIMES
Parliament Ready for Opening on Monday
Government Will Avoid Contentious Measures, and May Face an Election — Some
Possible Legislation — The Cost of the Navy — Settlement of Amounts With Germany
(Special to The Monetary I'imes.)
Ottawa, February 10, 1921.
EVERYTHING presages that the Parliamentary session
beginning Monday will be an unusually stormy one.
The return of a Liberal, G. N. Gordon, in the West Peter-
boro bye-election will encourage the Liberal Opposition to
demand more strenuously than last year a general
election, and in this, they will be supported by the Progres-
sive members. Certain of its journalistic supporters are ex-
horting the government to make an appeal to the people in
a general election immediately after the debate on the ad-
dress, after voting supply, but it is not expected that the
government will follow this advice unless it finds itself
weaker in the House than it supposed.
Avoid Contentious Measures
In a -session where every government measure can expect
rough riding, it is not intended to introduce any more con-
tentious legislation that can be helped. The tariff revision
proposals will necessarily be contentious although nothing
drastic is expected. The Excess Profits Tax will probably be
abandoned, and the chief interest will be to see what will
be proposed to take its place. An extension of the sales
tax is expected.
Of interest to the financial world is the legislation in
view by Senator Robertson with regard to Unemployment In-
surance, amendments being devised for the purpose of allow-
ing insurance companies to do more than one kind of busi-
ness, a movement on foot to bring provincial and federal
officials in agreement on amendments needed to the Bank-
ruptcy Act, the desire of loan and trust companies with some
exceptions to get an extension of their powers to take de-
posits, co-incident legislation arranged for in the federal
and Ontario houses to appoint an engineering board to con-
trol the disposal of power developed on the Winnipeg and
English rivers from the Lake of the Woods and Lac Seul
districts to t;he Manitoba boundary, and the intimation that
the government is considering making considerable changes
in the land settlement regulations and policy of the country.
Railways to Oil Fields
Although the government had intended to undertake no
new railway building this session, nor to purchase any more
branch lines for the Canadian National Railway, it is pos-
sible that the discovery of oil at Fort Norman will lead to
certain petitions for franchises to build such railways being
presented, and that the government will be asked to make a
declaration of policy on the point. Certain small railways
running out of Edmonton which the government would not
look at before may acquire a new importance for a time.
Certain building arranged for at the last session of Parlia-
ment will continue during the coming season, but as a policy
no new building will be attempted unless new discoveries of
oil in other parts of the north make it an economic necessity.
During the session it is hoped that the Grand Trunk Rail-
way Board of Arbitration will come to a conclusion with
regard to the value of the shares in dispute, and that the
final merging of the Grand Trunk and Canadian National
railways will be accomplished this year. The policy of
nationalization will again be attacked by those against it
when the government once more asks for more than sixty
million dollars to make up the operating deficit.
Amendments to the Franchise Act are expected in view
of the referendum vote in Ontario, and the whole question
of appointments to the Civil Service by the Civil Service
Commission will again be under debate. The Pensions Com-
mittee will sit again to hear complaints and suggestions
from organizations Of veterans.
Naval Expenditure
That the net expenditure of the Canadian Department of
Naval Service during the \as.t fiscal year was $9,638,876, is
shown by the annual report of the department. The gross
expenditure for the year was in excess of fifteen millions,
but the amount of refunds exceeded six millions, the total
being thereby very greatly reduced. The revenue for the
year was slightly in excess of half a million dollars. Under
orders issued in March last by the Minister of the Naval
Service, Hon. C. C. BaJlantyne, a complete reorganization
of the dockyards was instituted, with the object of bringing
them up to date, and ensure their future operation on lines
of strict economy and efficiency. The reorganization involved
a large reduction of staft throughout the department, and
only the most efficient and necessary employees were re-
tained. The section of the report dealing with the fisheries
protection service says that on the Great Lakes one vessel
has been in commission. This will be replaced by three
smaller ships providing a better system of protection at little
additional cost.
Seed Grain Loans
The government is making arrangements with the banks
for advances to those farmers of the west who lost their
crops last year and who a-re unable to personally finance the
purchase of seed grain. It is estimated that the amount of
the advances will be about half a million dollars. The ad-
vances are to be made only to homesteaders, actus'lly engaged
in farming, on the security of their personal notes, the gov-
ernment undertaking to make good in the event of default.
German Debts
Notice is given that Canadian creditors who have regis-
tered with the clearing office at Ottawa their cl&iva against
German nationals in respect of pre-war debts, must make
the necessary statutory declarations in support of their claims
on or before March 31 , 1921. No claim in respect of pre-war
debts will be admitted after th&t date, unless the controller
of the clearing office is satisfied that the omission to lodge
the declaration by the date mentioned arose from circum-
stances for which the creditor could not justly be held re-
sponsible.
Central Purchasing Commission
The Purchasing Commission of Canada supersedes the
late War Purchasing Commission, it has just been an-
nounced. Its duties are in part to supervise the purchase
of all supplies for all departments of the Government
throughout Canada, and the policy is to purchase direct from
the best source of supply.
Requisitions or demands for supplies are forwarded by
the local officers to their respective departments at Ottawa,
which in turn submit same to this Commission, which directs
the action to be taken. In so far as jwssible all supplies
demanded are purchased by tender, and the business given
to the lowest tenderer for goods required. The Commission
is of the opinion that supplies should be purchased in the
districts where they are required. That statement may have
to be modified according to the kind and quantity of the
goods required.
The rural municipalities of Manitoba voted against the
adoption of a municipal hail insurance scheme at the recent
elections.
THE MONETARY TIMES
Volume 66.
CANADIAN GUARANTY TRUST COMPANY
HURON AND ERIE REPORT
At the annual meeting- of the shareholders of the Can-
adian Guaranty Trust Co., held in Brandon, Man., good re-
ports of the operations of this institution were presented.
There has been a marked increase in the assets of the com-
pany, and a considerable addition to the paid-up capital
which now amounts to $263,637. The assets total $2,896,955.
The volume of business transacted shows a substantial in-
crease and many estates have been placed with this company
for administration. Considerable sums have been trans-
ferred to the reserve and contingency funds, and there are
substantial undivided profits.
The business of the company is carried on in the four
western provinces of Canada, and an agency has been opened
at Swift Current, Sask. The company has a creditable
record of achievement, and since and including the year
1914, has regularly paid a six per cent, dividend.
TRUSTS AND GUARANTEE COMPANY
The annual statement of the Trusts and Guarantee Co.,
Toronto, shows that the estates, trusts and agency account
at the end of 1920 stood at $16,383,751, compared with $14,-
046,958 at the end of 1919. The guaranteed trust account in-
creased from $5,363,413 to $5,422,655. Net profits for the
year at $111,975, showed a small increase of $2,000 over the
previous year.
The progress of the company since 1907 has been rapid.
Guaranteed trust funds held thirteen years ago amounted to
$785,421, while now they are close to five and a half millions.
Estates, trusts, etc., have increased from about $2,000,000 to
more than $16,000,000. Total assets are now $23,542,212,
compared with $4,830,482 in 1907.
E. B. Stockdale, general manager, in his report at the
annual meeting, stated that the company's experience with
real estate mortgages has been a most satisfactory one.
Properties that have been foreclosed from time to time and
disposed of have resulted in a net profit to the company,
and the officials are confident that not one dollar of loss will
result from the many millions of dollars of mortgages held
by the company. The late Matthew Wilson, K.C., of
Chatham, who joined the board in 1908, having died during
the year, Col. P. H. Wigle, K.C., of Windsor, was nominated
and elected to look after the same interests.
During the year, stated President J. J. Warren, the
company's asset had been thoroughly reappraised and certain
non-producing assets had been disposed of at a sacrifice in
order to turn the money received into producing channels. It
is understood that the property disposed of consisted of lands
acquired by a previous administration which had been
carried, it was considered long enough.
LONDON AND CANADIAN LOAN AGENCY COMPANY
Business of the London and Canadian Loan and Agency
Co., Ltd., was well maintained during the year 1920, and the
returns therefrom proved satisfactory. Gross revenue was
about $4,000 lowei-, and this, together with an increase in
general expenses and administration, brought net profits to
$173,540, as compar-ed with $188,118 in 1919. The usual divi-
dend of 9 per cent, was maintained, however, and a smaller
balance carried forward.
The balance sheet shows that mortgage loans amount
to $4,399,105, as against $4,381,380 at the end of 1919. Hold-
ings of debentures show a reduction, but cash is about $50,-
000 higher at $288,046. Debentures, debenture stock and
certificates are slightly changed at $2,774,372.
The London and Canadian Loan and Agency Co., Ltd.,
has now been in business for forty-seven years, and has
assets of $5,067,253. The reserve fund amounts to $1,000,000,
or 80 per cent, of the paid-up capital.
The Huron and Erie Mortgage Corporation, one of Can-
ada's strongest and oldest mortgage corporations, with a
charter bearing the date of 1864, being three years before
the provinces of British North America became the Dominion
of Canada, has just issued its 1920 statement, showing the
same healthy growth which has been noted in former years.
A few of the salient features of the progress made during
1920 are noted below: —
As at December 31st. 1919. 1920. Increase.
Total assets $20,435,520 $22,647,815 $2,212,295
Reserve (t h e paid-up
capital and reserve are .
now $6,150,000 ...... 1,000,000 1,150,000 150,000
Deposits (this repre-
sents an increase of
over 35 per cent, in
one year) 4,054,841 5,543,487 1,488,646
Huron and Erie deben-
tures sold to Canadian
and American inves-
tors 6,326,129 7,721,586 1,395,457
Loans on mortgages are shown at $15,073,875, as com-
pared with $13,339,194 at the end of 1919. Holdings of securi-
ties are some $250,000 higher at $4,292,043. Another feature
of the report which is worthy of mention is that for the
thirteenth consecutive year there is no real estate on hand
other than office premises. This is recognized as the "acid
test" of a mortgage corporation's financial stability.
Net profits increased to $549,600 from $535,610. The
usual dividend of 6 per cent, was paid, and in addition a
bonus of 1 per cent. The amount of $150,000 was transferred
to the reserve fund, and $22,317 wa^ carried forward, as
compared with $16,373 previously.
At the annual meeting on Februai-y 9 it was decided that
the dividend for the year would be 6 per cent., with a 1 per
cent, bonus. This is the same as last year.
The following officers were elected for the ensuing
year: — President, T. G. Meredith; first vice-president, Hume
Cronyn, M.P. ; second vice-president, Frank E. Leonard;
general manager, Hume Cronyn; assistant general manager,
M. Aylsworth; secretary, D. McEachern; treasurer, C. J.
Clarke; auditors, J. C. Pope, F. G. Jewell, F. C. Turner and
J. F. Kern. Mr. Kern took the place of M. H. Rowland, who
resigned owing to ill-health. Directors chosen were George
T. Brown, H. E. Gates, A. H. M. Graydon, Philip Pocock, Dr.
F. R. Eccles and N. H. Howden.
HOME INVESTMENT AND SAVINGS ASSOCIATION
An increase in mortgage loans, in deposits and in net
profits are the outstanding features of the 1920 statement
of the Home Investment and Savings Association, Winnipeg.
Mortgage loans are shown as $1,612,338, compared with $1,-
523,788 a year ago, while contracts receivable on real estate,
foreclosed and resold, are some $37,000 higher at $320,191.
Interest on mortgages accrued due is $103,933, being a slight
decrease as compared with 1919. There has been some in-
crease in the number of properties on which the interest
is two or more years in arrears.
The number of properties in the hands of the association
has been reduced by 65 per cent., and now stands at $59,174,
compared with $137,579 in 1919, notwithstanding the fact
that a large number of properties were taken over during
the year. The inspector also takes the view that the loans
of the company would be in a much better position but for
the moratorium and other legislation enacted by the western
provinces. A contingent fund of $50,000 has been established,
however, which is considered ample provision for any losses
which might occur. A complete report will be found else-
where in this issue.
February 11, 1921
THE MONETARY TIMES
iHonttar^ Slimes
Trade Review and Insurance Chronicle
of Canada
Address: Corner Church and Court Streets, Toronto, Ontario, Canada.
Telephone: Mai^ 7404, Branch Exchange connecting all departments.
Cable Address : "Montimes. Toronto."
WinnipeK Office: 1206 McArthur Building. Telephone Main 3409.
G. W. Goodall. Western Manager.
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The Monetary Times does not necessarily endorse the statements and
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cluding from its columns fraudulent and objectionable advertisements. All
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PRINCIPAL CONTENTS
EDITOKIAL: PAGE
Broad Issues for the Coming Session 9
The Progress of Social Legislation 9
Felger Livestock and Grain Limited 10
The Shareholders' Meeting 10
Special Articles:
Increase in Workmen's Compensation Proposed ... 5
Manitoba Legislature Now in Session 6
Parliament Ready for Opening on Monday 7
Record Value of Canadian Field Crops 14
Fifty Years of Fire Insurance in Canada 18
Newfoundland's Industries Undergoin^j; Strain ... 30
The Spirit of Enterprise Deserves Fostering 36
Express Companies' Substantial Increase 38
Action on Loan Company to Shai'eholders 42
-Monthly Departments:
January Bond Sales 24
January Fire Losses 26
Weekly Dep.ajjtments :
News of Industrial Development in Canada 44
News of Municipal Finance 48
Government and Municipal Bond Market 50
Corporation Securities Market 54
The Stock Markets 56
Corporation Finance 58
Recent Fires 60
IliCOAD ISSUES FOR THF, CO.MING SESSION
WHEN parliament assembles on Monday it will have three
broad questions which must be handled with an eye
single to the wishes of the electorate. First and foremost
there is the tariff. The free trade forces have weakened,
and a policy of tariff reduction is specially difficult in a
period of contraction and falling prices such as that upon
which we are now embarked. Nevertheless the movement
has spread, gaining favor as the more extreme elements
have been eliminated, and politicans have their ears to the
ground to detect the sound of a movement capable of carrj'-
ing a party to power in the federal house.
Along with the tariff, other big issues in the field of
Dominion and provincial politics are public ownership and
social legislation. Where is the economist who would care
to decide, on behalf of the nation, in either direction on these
issues? The ultimate success or failure of public ownership
as compared with private ownership, or the advisability of
the appropriation of wealth for the material advancement
of the poor, cannot be decided scientifically. But here as
in the ca^e of the tariff there are details with wKich the peo-
ple as a whole, in their capacity of electors, are not con-
cerned. Although the public has demanded a measure of
progi"eS3 or both questions, the particular field to which
public ownership is to be applied, or the methods for the
transfer of wealth from those that hath not, has been left
largely to the ingenuity of politicians. The ramifications in
both cases are already extensive, however; we already have
in Canada experiments in public ownership of railroads,
steam-ship line?, power development, street railways and tele-
phones, and a few municipal attempts at the distribution
of vegetables, n'ilk and other products; our social legislation
includes regulations as to the hours and conditions of labor,
minimum wages, mothers' pensions and employment service.
There is, therefore, a big field for the testing of political
power on economic issues alone. A glance back at the politi-
cal campaigns of the past few years, however, shows that
liiL- fiuriuiiiR- (lui-i^tiuiis liavL' been the big is.-5ues. Material
forces guide the course of politics at the present time, though
lelig ous or racial feelings may occasionally break through
their shackles. Even patriotism as a political factor seems
to be extinct since the end of the war; no popular interest
can Vc aroused in the league of nations or relations with the
empire. The test of the wisdom of new legislation is how it
will affect the pocket of the voter.
Big material forces are therefore driving ahead move-
ments which would never meet the approval of a commission
or board of experts. It is on the broad questions, however,
that the public is most apt to be nearest the truth, and much
real progress must be attributed to its stubborn insistence on
principles seemingly unsound. Would any Royal Commission
have approved of the extension of the franchise in the United
Kingdom last century? Scarcely so, nor would any body of
experts now en-lorse the principles of free trade, public
ownership or social legislation except in limited degree and
with reference to a specific field. These are subjects which
must b^ left to the guiding hand of public opinion, which
"errs not. seeing but the thing it wills."
I'HE PROGRESS OF SOCIAL LEGISLATION
'C'URTHER socialization of private wealth in Canada will
-■• be achieved this year, if the hopes of supporters of
some proposed measures are realized. The most far reach-
ing proposal is that for a system of national unemployment
insurance whereby all workers would be paid whether they
work or not, the payments to the unemployed being on a re-
duced basis of course, and coming from a fund maintained
by assessments on employers, employees and on the govern-
ment. Unemployment insurance is already in force in Great
Britain and in Germany. The main difficulties are the pre-
vention of abuse, and meeting special conditions such as the
industrial depression of the present time.
There is also a movement to extend workmen's com-
pensation by enlarging its scope and increasing the rate of
THE MONETARY TIMES
Volume 66.
payment. Last year in Ontario the latter was raised from
:>b per cent, to 60% per cent, and tiiis year an attempt will
be made to secure 75 per cent., with 100 per cent, as the
tinal objective. There is also a desire in Quebec to have
a system of public compensation.
Mothers' pensions are now provided by several of the
provinces, including Ontario, Alberta and Manitoba. Al-
ready the expenditure on this account is piling up, and no
doubt will continue to do so until the experimental stage is
passed. Other social measures to be operated through the
departments of education and public health are also con-
templated.
All these measures mean increased expenditure on the
part of the Dominion and provinces, and whether the money
is provided by the governments themselves or by an assess-
ment on the public, the effect is the same— the expense of run-
ning a business or of merely being a useful citizen is in-
creased. There are times when business is in such a state of
expansion that social reforms can go ahead with leaps and
bounds. But in the face of shrinking government revenues
it will be the part of wisdom to use caution in incuring new
non-productive expenditures.
FELGER LIVESTOCK AND GRAIN LTD.
SOMEONE is wanted to buy $250,000 notes of the Felger
Livestock and Grain, Ltd., of Lethbridge, Alta., but be-
fore doing so a careful inquiry should be made as to the
company's antecedents. L. A. Felger was formerly in con-
trol of the Felger Farming Co., Ltd., located seven miles
southeast of Lethbridge. Under his management and super-
vision the concern became hopelessly involved, and the land
is encumbered for more than it is worth to-day. In addition
there are several executions registered against the company.
The prospectus of Felger Livestock and Grain, Ltd., which
was incorporated early in December under an Alberta
charter with an authorized capital of $250,000, states that
no public offering will be made of the shares. The amount
subscribed is $5,000, which is to be fully paid up by May
1st. Twenty $100 shares are to be given to L. A. Felger on
account of preliminary expenses incurred in connection with
the organization of the company. The company is offering
$250,000 of 10 year 8 per cent, notes, particulars of which
will be found in Corporation Securities Market in this issue.
The claims made regarding possible profits are rather
far-reaching, and do not make up for the obvious narrowness
of the margin of capital to be paid up. The business of
Felger Livestock and Grain, Ltd., is moreover complicated
by an insiu-ance premium arrangement which may or may not
be successful. While there are good opportunities for large
scale farming in Canada, by the investment of capital by
parties not actively engaged, the security offered by Felger
Livestock and Grain does not appear to be satisfactory on
the basis of the facts presented.
THE SHAREHOLDERS' MEETING
NOW and again some belligerent shareholder will enliven
proceedings at stockholders' meetings of some of our
Canadian corporations, but nothing that can be said or done
at such meetings can compare with the proceedings which
occur at some of the British corporations' meetings. For
instance, at the meeting of one of the small gold mining
companies in London last year the following scene took
place: —
Directors and officers seated on a dais with about 200
shareholders seated on camp chairs in the foreground. After
preliminaries, including remarks by officials, the shareholders
took part in proceedings:
First shareholder: "Why don't we get dividends now?"
This was carefully explained by the chairman.
Second shareholder: "In these times you officers ought
to get less wages and apply the cut to the shareholders."
No remark from the chair.
Many shareholders: "Hear, hear! We want dividends!
Give up some of your cash! You're wasting money, etc."
Still no remark from the chair.
First shareholder: "What are we paying you chaps for
anyway? How much do you each get?" Chairman then rises
and reads off the salaries paid officials and sits down ag'ain.
Lady shareholder: "I have had to give up my servants
since you stopped paying dividends and I want to know when)
you will begin paying again?" Chairman politely intimates
it is beyond his ken to make any statement on the matter.
At this juncture meeting is adjourned by some hungry ones
for lunch.
Meeting is again called to order in afternoon when heck-
ling continues but to no avail. Chairman finally promises a
printed statement later, and as tea time is nigh, the share-
holders adjourn for tea and cake.
The effort of western municipalities to broaden their
basis of taxation is an enlightened reaction from the single
tax movement of several years ago.
Iron .and steel is a fundamental industry — a key to
others. The dullness now being experienced does not speak
well for the general business outlook in the spring.
The illuminating paper in this issue' by G. D. Finlayson
shows fhat, whatever may be said as to the cost of fire in-
surance, the shareholders have received a vei-j- small return
from the business.
*****
The January fire loss, estimated by The Monetary Timex
at $2,237,900, is favorable compared -v^ith that of other years,
and indicates that incendiarism is not too prominent a result
of present business conditions.
A Toronto church of 300 members has sold its property
for $60,000. How long will municipalities permit private
property to benefit by town and cities growth without being
taxed for its share in the cost of municipal services?
*****
Newfoundland's industries suffered badly in the busi-
ness slump of 1920. The maintenance of an independent sys-
tem of tariffs and the whole machinery of government is
one of the factors -which retards the development of the
colony.
Outside of a $12,000,000 Grand Trunk Railway issue
and a $10,000,000 Ontario issue, bond sales in January
totalled $16,054,035. Municipal and corporation issues
totalled only $7,804,000. The provinces are certainly not
taking the lead in the economy movement.
"The Spirit of Enterprise" requires caution sometimes,
just as it requires optimism and courage at other times. As
is pointed out in the article by B. E. Howard in this issue,
the banks made a positive contribution to Canadian develop-
ment by helping to bring about a gradual recession in busi-
ness, thus avoiding a crisis.
NO CHARGE FOR THIS
With reference to the newspaper reports of a boy who,
upon returning $100 to the proper owner, after he had picked
up a wad in the street, was rewarded with a "Thank you," it
has been pointed out that in Scotland the courteous "Thank
you" would have been a matter of course, and would not call
for any special mention in the papers.
February 11, 1921
THE MONETARY TIMES
MANUFACTURERS
If your home Demand is
slackening, are you inves-
tigating markets abroad?
Our Foreign Department
has detailed information
on export trade possibili-
ities which we shall be
glad to place at your
disposal.
THE CANADIAN BANK
OF COMMERCE
Head Office
Paid-up Capital
Reserve Fund
$15,000,000
$15,000,000
Business Accounts
The complete banking facilities
provided at all our branches enable
this Bank to give Business Ac-
counts the care and attention they
need and deserve.
The Merchant and the Manufac-
turer will find the services rendered
by this Bank of the greatest assist-
ance in conducting their business.
IMPERIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land -The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
The Bond
Between
Bank and
Farm
CTIMULATION of agricultural pursuits
is essential to the welfare of the
Dominion. This Bank plays its part as
a national institution by lending every
effort and its vast resources to support
agricultural activity to the utmost.
Those interested in any enter-
prise of the soil are invited to
confer with our branch managers.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch :
55. OLD BROAD STREET. E.C.2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
L. E. Butler, who has been with the investment house
of A. E. Ames and Company for the past thirteen years, has
been appointed to the position of manager of the bond de-
partment of Edward Cronyn and Company, members of the
Toronto Stock Exchange.
Charles R. Hegan, C.A. (Canada), formerly assistant
general auditor of the overseas military forces of Canada,
has now resumeJ his practice at 24 Coleman St., London, Eng.,
and is prepared to act as correspondent for Canadian ac-
countants not already represented in London.
Percy A. Vale, a well-known Toronto banker, has been
made a member of the firm of Turner, Spragge and Com-
pany, members of the Toronto Stock Exchange. Mr. Vale
was for years with the Traders', and afterwards with the
Royal Bank, and was manager of the Yonge and Richmond
Streets branch of the Royal Bank for the past 11 years.
J. D. Chaplin, St. Catharines, Ont., has been elected
to the directorate
of the Bank of
Toronto. Mr.
Chaplin i s well-
known in business
and political cir-
cles, having been
elected member of
parliament in De-
cember, 1917, as
Unionist. He is
president of the
W e 1 1 a n d Valve
Manufacturing-
Company,, manu-
facturers of agri-
cultural tools;
president of the
Canada Axe and
Harvest Tool Com-
pany, and presi-
dent of the Wall-
ingford Manufac-
turing Company.
For four years he
has been council-
lor of St. Cath-
arines. While most of the bank's directors are Toronto men,
Mr. Chaplin, along with 'one or two others, bring important
connections from other cities.
James C. Willar, C.A., chief auditor to the Canadian
Wheat Board, late of the contract costs department, Ministry
of Munitions of War, London, Eng., and Walter James
Macdonald, C.A., late assistant auditor to the Canadian
Wheat Board and of the 44th Battalion, C.E.P., have entered
into partnership under the firm name of Millar, Macdonald
and Company, with offices in the Home Bank Building, 428
Main St., Winnipeg. They will carry on a general practice
as chartered accountants, specializing in cost accounting, in-
vestigations, grain accounting and income and business pro-
fits war taxation.
Sir Ernest Cable, senior partner in the East India
house of Bird and Company (Calcutta and London), has been
made a baron in recognition of his public services during the
war. The new baron has for years been a member of the'
London board of directors of the Western Assurance Com-
pany and of the British America Assurance Company, of
Toronto. His firm has represented the "Western" at Calcutta
since 1900 and has built up a large premium income for the
company. It was the first agency appointment made by W.
B. Meikle. the present president, on assuming the London
management of the company.
BANK BRANCH NOTES
The following is a list of branches of Canadian banks
which have been opened recently: —
St. Georges Beauce, Que. . . . Banque d'Hoehelaga
Beloeil, Que Banque d'Hochel&ga
White Rock, B.C Royal Bank of Canada
The Bank of Montreal announces the following: A. A. E.
Tetreault, manager at Verdun, appointed manager at Mais-
onneuve, Montreal; A. J. Hamel, appointed acting man&ger
at Ste. Anne de Bellevue; J. F. Jewell, manager at Ste. Anne
de Bellevue, appointed manager at Verdun; H. H. Hobbs,
appointed acting manager at Thorndale.
J. G. Ra.ppell, manager of the South Hill branch of the
Merchants Bank^ has been transferred to the branch at Eaton,
Sask. J. E. Clarkin, of the Moose Jaw branch, has been
appointed manager at South Hill.
The Bank of Montreal announces the following: — A. G.
McCosh, appointed manager at Kelowna, B.C.; P. DuMoulin,
manager at Kelowna, appointed manager at Kingston; G.
B. Gerrard, manager at 140 St. James St., Montreal, ap-
pointed assistant manager at Montreal. R. Broughton, ap-
pointed assistant manager at Montreal, in charge of office
administration; A. A. Stewart, appointed acting manager
at 140 St. James St., Montreal; F. B. Carter, appointed act-
ing sub-agent at Whitney Pier, Sydney, N.S.
Chas. F. MacKenzie, accountant of the Merchants Bank
at Gait, has been transferred to London, and promoted to
manager of the East End branch, at the corner of Dundas
and Adelaide Sts. He is succeeded by D. A. Wood, of Col-
lingwood.
MANITOBA FARMERS' MUTUAL HAIL INSURANCE
Operating on a purely mutual basis and confining its
operations to Manitoba, the Manitoba Farmers' Mutual Hail
Insurance Co. enjoyed its best year in 1920. Insurance
written amounted to $2,400,000, being an increase over the
previous year of $410,000. The balance sheet published else-
where in this issue shows total assets of $143,198, an in-
crease for the year of $52,631, while the surplus is shown as
$132,400. G. S. Francis is manager of the company, and
under his guidance the company is making good headway.
Rebate or discounts returned to policyholders last year
amounted to $21,500.
SECURITY LIFE INSURANCE COMPANY
Premium income of $112,648, of which $45,345 was
from first year and $67,103 from renewal premiums, is re-
ported by the Security Life Insurance Co. in its annual
statement for 1920. Other receipts were $11,101 from in-
terest and rents, $32,054 from premiums on capital stock,
and $48,371 on capital stock. This makes a total of $204,-
175, compared with $121,689, of which $83,550 was from
premiums, in 1919. • Claims paid were $17,377 in 1920,
against $14,752 in 1919. Agents salaries, travelling ex-
penses, advances, commissions, etc., were $47,505, or about
42 per cent, of premium income, compared with $32,644 in
1919. After other disbursements a balance of $90,809 was
carried to investment account. Last year the balance so
carried was $37,736, the large increase this year being, of
course, due to the higher payments on capital account.
Assets now total $299,000, an increase of $83,000. The
principal changes are in the holdings of real estate, which
increased from $472 to $33,972, and increases of $30,000 in
bonds and debentures, $3,000 in mortgages, $1,100 in in-
terest due, $3,000 in policy loans, and $7,000 in outstanding
and deferred premiums. The reserve on policies in force
has increased from $148,923 to $218,079, and the company's
surplus assets over liabilities, excluding capital stock, is
now $74,394, against $38,710 last year.
February 11, 1921
THE MONETARY TIMES
iommuiiinaiiiDianaimiHinniimnaiiuiui^
The Sterling Bank
OF CANADA
Are you considering a market foi your product outside Canada ?
Would you like information about trade conditions and the
prospects of making such a venture successful? Our Foreign
Department will gladly place its comprehensive fund of
knowledge at your disposal— and its facilities for getting
such facts as are not immediately available.
Head Office
KING AND BAY STREETS, TORONTO
The National Bank of Scotland
Limited
Incorporated by Royal Charter and Act of Parliament. Established 1825
Capital Subscribed ^5.000,000 825.000,000
Paid up 1,100.000 5,500,000
Uncalled 3,900,000 19,500,000
Reserve Fund 1,000,000 5 000,000
Head Office • EDINBURGH
WILLIAM CARNEOIE, General Manager. GEORGE A. HUNTER. Sec.
LONDON OFFICE— 37 NICHOLAS LANE. LOMBARD ST.. EC. 4
T. C. RIDDELL, DUGALD SMITH.
Manager Assistant Manager
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London, are
retired on terms which will be furnished on application.
REAL ESTATE
Your rents must be collected when
due. Taxes must be checked up
and paid. Repairs need the attention
of someone experienced in caring for
property. Responsible tenants must
be secured.
These are services efficiently rendered
to our Clients by our Real Estate
Department.
THE BANKERS
TRVST GOMB^NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
dommonwealtb Banh of Hustralia
All classes of GENERAL AND SAVINGS BANK business are trans-
acted in all the principal cities and towns of Australia. Rabaul and
London.
JAS. KELL.
Deputy Governor 1920
DENISON MILLER,
Governor
Your Business and Your Estate
Throughout your business career all iinportani trans-
actions have been thoughtfully weighed from every angle.
Similar care should be exercised when considering the
selection of an executor. The future welfare of your
family demands it.
The Canada Trust — because of its competent organiza-
tion, continuous existence and long experience, will make
•A GOOD EXECUTOR FOR YOUR ESTATE."
The Canada Trust Coi*vPANY
LONDON JOINT CITY & MIDLAND
BANK LIMITED
The Right Hon. R. B/lcKENNA
MURRAY C»q.
£•0
Subscribed Capital
Paid-up Capital
Reserve Fund .
Deposits ij^rsit',. 19:0^
HEAD OFFK
. £38,096,363
10,840,112
10,840,112
■ 367,667,322
THRtADNEEDLE STKEET. LONDON. ^C 2.
ESTABUSHED 1879
Alloway & Champion
Bankers and Brokers
Members of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
THE MONETARY TIMES
Volume 66.
RECORD VALUE OF CANADIAN FIELD CROPS
Total for 1920 Estimated at $1,455,000,000— Higher Yields
Are Ofl'set by Reductions in Price
* REAS and yields of grain crops in Canada, as announced
■•^ by the Dominion Bureau of Statistics in a final report
on January 17, were as follows: —
The total yield of wheat in Canada for the year 1920 is
now finally returned as 263,189,300 bushels from 18,232,374
acres, as compared with 193,260,400 bushels from 19,125,968
acres in 1919, and with 254,480,440 bushels from 16,342,969
acres, the annual average for the five years 1915-19. The
total yield for 1920, as now reported, is 30,171,700 bushels
less than the provisional estimate of 293,361,000 bushels,
issued by the Bureau on October 29, 1920, this difference
being mainly due to the disappointing yield per acre in
Saskatchewan, which turned out to be only 11.2 bushels in-
stead of 13% bushels as then reported. The average yield
per acre for Canada is 14% bushels, as against 10 bushels in
1919 and 15% bushels, the five year average.
For oats, the finally estimated production is 530,709,700
bushels from 15,849,928 acres, as compared with 394,387,000
bushels from 14,952,114 acres in 1919. The total is 12,348,-
300 bushels less than the Bureau's provisional estimate of
October 29 last. The average yield per acre is 33% bushels
as against 26% bushels in 1919 and 32 bushels, the five year
average. Barley yields 63,310,550 bushels from 2,551,919
acres, as compared with 56,389,400 bushels from 2,645,509
acres in 1919, the average yields per acre being 24% bushels
for 1920, 21% bushels in 1919 and 24 V2 bushels the five year
average. Flaxseed gives a total yield of 7,997,700 bushels
from 1,428,164 acres, as compared with 5,472,800 bushels
from 1,093,115 acres in 1919 and with 6,367,340 bushels from
840,375 acres, the five year average. The yield per acre in
1920 is 5.6 bushels, as against 5 bushels in 1919 and 7%
bushels, the five year average. For the remaining grain
crops the total yields were in bushels as follows, the corre-
sponding totals for 1919, and for the five year average, being
given within brackets: Rye 11,306,400 (10,207,400 and 5,-
586,320); peas 3,528,100 (3,406,300 and 3,285,678); beans
1,265,300 (1,388,600 and 1,472,396) ; buckwheat 8,994,700
(10,550,800 and 8,583,520); mixed grains 32,420,700 (27,-
851,700 and 21,554,696); and corn for husking 14,334,800
(16,940,500 and 11,911,680). The average yields per acre of
these crops are in bushels as follows: Rye 17% (13% and
15%); peas 19 (14% and I6V4); beans 17% (16% and
15%); buckwheat 23% (23% and 20%); mixed grains 40
(31 and 33%) ; and corn for husking 49% (64 and 50%).
Root and Fodder Crops
The finally estimated production of potatoes is 133,831,-
400 bushels from 784,544 acres, as compared with 125,574,900
bushels from 818,767 acres in 1919 and with 86,692,620
bushels from 633,937 acres, the quinquennial average. The
yield per acre is therefore 170% bushels, which compares
with 153% bushels in 1919 and with 136% bushels, the
average. Both in average and total yield the figures for 1920
are the highest on record. Turnips, mangolds, etc., yielded
116,390,900 bushels from 290,286 acres, as compared with
112,288,600 bushels from 317,296 acres in 1919 and with 79,-
107,060 bushels from 231,819 acres, the five year average.
The yield per acre is 401 bushels, the highest average on
record, and compares with 354 bushels in 1919 and with
341% bushels, the five year average. Sugar beets yielded
412,400 tons from 36,288 acres, as compared with 240,000
tons from 24,.5O0 acres and with 149,920 tons from 17,900
acres, the five year average. The yield per acre is 11.37
tons as compared with 9.80 tons in 1919 and with 8.40 tons,
the average. The yield of hay and clover is 13,338,700 tons
from 10,379,292 acres, as compared with the previous year's
record of 16,348,000 tons from 10,595,383 acres, and with
the five year average of 13,988,800 tons from 8,992,659 acres.
The average yield per acre is 1.30 ton. as against 1.55 ton
for 1919 and for the average. Grain hay in British Columbia
yields 136,400 tons from 60,612 acres, as compared with
151,000 tons from 60,390 acres in 1919, the respective
averages being 2% and 2% tons to the acre. Alfalfa yielded
583,790 tons from 238,556 acres, as against 494,200 tons
from 226,869 acres in 1919 and 350,144 tons from 146,192
acres, the five year average. The yield per acre is 2.45 tons
as against 2.20 tons in 1919 and 2.40, the five year average.
Grain Yield of the Prairie Provinces
The finally revised total grain yields from the three
prairie provinces (Manitoba, Saskatchewan and Alberta)
are as follows: Wheat 234,138,300 bushels from 16,841,174
acres, as compared with 165,544,000 bushels from 17,750,167
acres in 1919; oats 314,297,000 bushels from 10,070,476 acres,
as compared with 235,580,000 bushels from 9,452,386 acres in
1919; barley 40,760,500 bushels from 1,838,791 acres, as
compared with 36,682,400 bushels from 1,800,745 acres in
1919; flax 7,588,800 bushels from 1,391,076 acres, as com-
pared with 5,232,300 bushels from 1,068,014 acres in 1919.
Quality of Grain Crops
The average weight in pounds per measured bushel of
grain crops for the whole of Canada is as follows, the
average weights for 1919 and for the five years 1915-19
being given within brackets: Fall wheat 60.14 (61.20,
60.20); spring wheat 59.07 (58.53, 58.70); all wheat 59.35
(59.12, 59.06); oats 35.62 (34.16, 34.76); barley 47.62 (46.32,
46.89); rye 55.44 (55.09, 55.80); peas 60.44 (59.60, 59.99);
beans 59.73 (59.99, 59.59); buckwheat 47.95 (47.23, 47.10);
mixed grains 44.65 (44.83, 44.75) ; flax 54.99 (55.14, 54.77) ;
corn for husking 56.45 (55.74 five year average). Spring
wheat, oats, bax'ley, peas and buckwheat are thus superior in
quality both in the crops of 1919 and to those of the five
year average, rye is better than in 1919, but is not quite
equal to the five year average. Corn for husking is superior
to the average. Only fall wheat and mixed grains are below
1919 and below average. Beans and flax, whilst below 1919,
are above the five year average.
Values of Field Crops
The average values per bushel of grain crops for Canada
in 1920, according to the prices returned by crop corre-
spondents as received by farmers are as follows, the corre-
sponding avei-age prices for 1919 and for the five year period
1915-19 being placed within brackets: Fall wheat $1.88
($1.97, $1.56) ; spring wheat $1.60 ($1.88, $1.49) ; all wheat
$1.62 ($1.89, $1.42) ;oats 53 cents (80c., 62c.) ; barley 83 cents
($1.37, 97c.) : rye $1.33 ($1.40, $1.37) ; peas $2.42' ($2.86,
$2,68); beans $3,88 ($4.48, $5.36); buckwheat $1.28 ($1.50
$1.32) ; mixed grains 90 cents ($1.36, $1.08) ; flax $1.94
($4.13, $2.62); corn for husking $1.16 ($1.30, $1.31); pota-
toes 97 cents (95c., 90c.) ; turnips, mangolds, etc., 41 cents
(50c., 42c. 'I. For fodder crops the prices are per ton, as
follows: Hay and clover $26.10 ($20.72, $14.90); grain hay
$33.12 ($29 for 1919) ; alfalfa $23.79 ($21.85, $16.10) ; fod-
der corn $7.75 ($6.92, $5.82); sugar beets $12.80 ($10.86,
$8.62) .
The total values of crops on farms in 1920 are estimated
as follows, the corresponding values for 1919 and for the
five year average 1915-19 being given within brackets: Wheat
$427,357,300 ($364,857,000, $360,097,320); oats $280,115,400
($317,097,000, $261,497,260) ; barley $52,821,400 ($77,462,700,
$55,501,114; rye, $15,085,650 ($14,240,000. $7,670,740); peas
$8,534,300 ($9,739,300, $8,801,120) ; beans $4,918,100 ($6,214.-
800, $7,885,380); buckwheat $11,512,.500 ($15,831,000, $11,-
316,100) ; mixed grains $29,236,200 ($37,775,400, $23,333,-
370) ; flaxseed $15,502,200 ($22,609,500, $16,679,560) ; corn
for huskino- $16,593,400 ($22,080,000, $16,636,000) ; potatoes
$129,803,300 ($118,894,200, $77,875,200); turnips, mangolds,
etc., $48,212,700 (.54,958,700, $33,076,280) ; hay and clover
$348,166,200 ($338,713,200, $208,489,340) ; grain hay $4,-
518.000 ($4,379,000 in 1919) ; alfalfa $13,887,700 ($10,800,-
Febi-uary 11, 1921
THE MONETARY TIMES
Norwich Union
FIRE INSURANCE
SOCIETY LIMITED
(Founded 1797)
Norwich, England
Fire Insurance
Accident and Sickness
Employers' Liability
Plate Glass
Automobile Insurance
Head Office for Canada:
NORWICH UNION BUILDING
12-14 Wellington St. E., Toronto
rHoMEBANKt'CANADAl
SAFETY DEPOSIT BOXES FOR RENT
For a small annual rental — about one cent
a day — you may rent a Safety Deposit Box
in our fire and burglar proof vaults. Abso-
lute security for Bonds, business papers
and valuables. Private access to the boxes
any time during banking hours.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s-4
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
HEAD OFFICE. WEYBURiN. SASKATCHEWAN-
BRANCHES IN Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midale
Griffin, Colgate, Pangman, Radville, Assiniboia, Benson,
Verwood, Readlyn, Tribune, Expanse. Mossbank, Vantage,
Goodwater, Darniody, Stoughton, Osage, Creelman and
Lew van.
A GRNERAI. BANKING BUSINESS TRANSACTED
H. O. POWELL. General Manager
TH€ MCRCHANTS BANK
Head Office : Montreal. OF CAh4A.DA
Established 1864.
Capital Paid-up, $10,029,622 Reierve Fund and Undivided Profits, $9,475,585
Total Deposits (30th October, 1920) - Over $170,000,000
Total Assets (SOth October, 1920) Over $209,000,000
Sir F. ORROiik-Lewis, Bart.
Hon. a C. BAtLANTYNE
F. Howard Wilson
Board of Director* :
.SIR H. MONTAGU ALLAN
Farouhar Robertson
Geo. L. Cains
Alfred B. Evans
Vice-Pjesidem
Thomas Ahearn
LT.-COL. J. R. MOODIE
Hon. Lorne C. Webster
General Manager - D. C. Macarow
Supt. of Branches and Chief Inspector : T. E. Merrett
General Supervisor - W. A. Meldrum
A. J. DAWES
E. W. Kneeland
Gordon M. McGkegor
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending irom the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramsay and C. J. Crookali, Agents
London, England, Office, 53 Cornhill : J. B.Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
THE MONETARY TIMES
Volume 66.
200. $5,636,020); fodder coin $43,701,000 ($34,179,500, $20,-
692,420); sugar beets $5,278,700 ($2,606,000, $1,292,060).
The aggregate value of all field crops in 1920 was $1,455,-
244,050, as compared with $1,452,437,500 in 1919 and with
$1,372,935,970 in 1918. The total value for 1920 is the
highest on record, but the difference was between 1920 and
1919, which also was the highest figure to that date, is chiefly
due to the better harvest, as the average prices for each
crop are lower, except in the case of hay and clover and
alfalfa, the average prices and total values of which in 1920
are the highest on record.
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended February 4, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
Date.
3
C3
^
d
CO
oa
H
o
O
O"
S
<
w
n
i5
'^
a.
H
'-'
Feb. 4 . .
. . 6
15
0
0
4
4
13
0
0
42
18
Jan. 28 . .
..12
20
4
1
1
4
3
1
0
46
Jan. 21 . .
..15
35
6
3
5
1
4
2
0
71
20
Jan. 14 ..
..13
23
4
1
3
0
0
0
0
44
14
EXCHANGE QUOTATIONS
Glazebrook and Cronyn, exchange and bond brokers,
Toronto, report local exchange rates as follows: —
Buyers.
N.Y. funds 13% pm
Mont, funds
Sterling —
Demand
Cable transfers
Par
4.38
4.39
Sellers.
1314 pm
Par
Counter.
Vs to %
4..39
4.40
Bank of England rate, 7 per cent.
TRADE SITUATION UNCHANGED
"The trade situation has undergone little change," says
E. G. Dun and Co., in their report of February 5, on condi-
tions in Montreal. "The return of general activity is as yet
slow of development, but the spirit of confidence in the future
is steadily growing, and the failure list is proving to be much
lighter th&n generally anticipated. In the east collections are
generally fair, but western collections leave a gootl deal to be
desired. In the iron market matters still rule comparatively
quiet, but there is a little more enquiry evident and some
few sales of car lots reported. In prices another substantial
cut of $4 a ton went into effect on the 1st inst., making $41.80
the present figure for domestic foundry iron. In the grocery
line the month has opened rr.ther quietly, and there is an
evident disposition in some quarters to work off present
stocks before ordering freely. The sugar situation is en-
tirely unchanged, the general refinery figure for standard
granulated being $10.50 a cental, while supplies are regular.
Santos coffees and better grade teas are reported firmer.
NorwegiE'U brands of sardines and herrings are advanced.
In general provisions eggs are growing cheaper with the ad-
vancing season and lengthening days. Butter and cured
meats are not appreciably lower. Boot and shoe retailers
are still deferring any active buying, and a* a consequence
manufacturers are but lightly employed, and are not buyers
of leather to any extent. One of the features of the week is
the sale of raw and dressed furs being held by the Canadian
Fur Auction Sales Co., Ltd. Some 350 buyers &re said to be
in attendance, but at the moment of writing it is too early to
definitely gauge results or comparisons, although it is claimed
some recovery is being shown in values.
WEEKLY BANK CLEARINGS
The following are the bank clearings for the week ended
February 10, 1921, compared with the corresponding week
last year: —
Week ended Week ended
Feb. 10, '21. Feb. 12, '20. Changes.
Montreal $109,027,316 $137,920,302 —$28,892,986
Toronto : 105,128,124 101,590,571 + 3,537,553
Winnipeg 44,069,161 43,076,009 + 993,152
Vancouver 13,753,325 15,050,393 — 1,297,068
Ottawa 7,639,090 8,174,153 — 535,063
Calgary 6,153,658 7,163,813 — 1,010,155
Hamilton 5,323,531 6,283,670 — 960,139
Quebec 5,425,147 6,159,591 — 734,444
Edmonton 4,613,383 4,810,493 — 197,110
Halifax 3,635,517 3,825,410 — 189,893
London 3,183,577 3,195,638 — 12,061
Regina 3,500,247 3,365,280 + 134,967
St. John 2,638,911 2,782,532 — 143,621
Victoria 2,411,580
Saskatoon 1,751,482 1,870,136 — 118,654
Moose Jaw 1,273,906 1,391,332 — 117,426
Brantford 1,106,926 1,162,222 — 55,296
Brandon 628,286 672,784 — 44,498
Fort William 990,299 956,151 + 34,148
Lethbridge 570,575 664,481 — 93,906
Medicine Hat 440,872 414,563 -f 26,309
New Westminster . . 547,238 615,028 — 67,790
Peterboro 792,422 871,153 — 78,731
Sherbrooke 949,545 1,100,511 — 150,966
Kitchener 797,135 979,054 — 181,919
Windsor 2,818,340 2,413,965 + 404,375
Prince Albert .... 308,782 441,330 — 132,548
Total $327,066,795 $356,950,565 —$29,883,770
Moncton $ 1,148,484
MONTHLY BANK CLEARINGS
The following are the Bank Clearings for
January, compared with the same month last
Jan., 1921. Jan., 1920.
Montreal $494,702,024 $ 614,027,196
Toronto 414,365,319 447,974,237
Winnipeg 234,762,892 206,963,731
Vancouver 58,553,665 64,698,847
Ottawa. 35,298,519 40,971,148
Calgary 33,866,122 37,638,201
Hamilton 26,290,242 29,168,399
Quebec 25,915,954 27,449,109
Edmonton 22,179,390 24,488,025
Halifax 17,287,952 21,487,859
London 15,082,624 15,978,011
Regina 17,621,104 18,129,119
St. John 12,929,720 14,937,167
Victoria 10,687,103 11,609,302
Saskatoon 8,455,627 8,773,312
Moose Jaw 6,777,067 7,060,890
Brantford 6,032,193 5,687,152
Brandon 3,025,132 3,129,439
Fort William . . . 4,267,983 3,982,588
Lethbridge 3,023,975 3,338,654
Medicine Hat ... 2,082,823 2,241,896
New Westminster ' 2,432,749 2,551,285 ,
Peterboro 3,888,379 3,862,216
Sherbrooke 4,805,860 4,985,900
Kitchener 4,059,420 5,092,879
Windsor 12,685,093 10,835,496
Prince Albert 1,996,653 2,090,029
Totals $1,485,075,584 $1,639,152,087
Moncton 4,178,237
the month of
year: — •
Cha-nges.
-$119,325,172
— 33,608,918
4- 27,799,161
— 6,145,182
— 5,672,629
— 3,772,079
— 2,878,157
— 1,533,155
— 2,308,635
— 4,199,907
— 895,387
— 508,015
— 2,007,447
— 922,199
— 317,685
— 283,823
+ 345,041
— 104,307
+ 285,395
— 314,679
— 159,073
— 118,536
+ 26,163
— 180,040
— 1,033,459
+ 1,849,597
— 93,376
—$154,076,503
February 11, 1921
THE MONETARY TIMES
17
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
PMO UP CAPITAL- . - - - — — — . . . _ . .3 24,655,500.00
RESERVE FUND - ■ ■ - K^^^\ ' '' 16,750,000.00
RESERVE LIABILITY OF PROPRIETORS - ^|M^-mjfe(E<A f _..__. 24,655,000.00
kaJ[mJ(^3J^2I^K/<>, -..--$ 66,061,000.00
AGGREG.A.TE ASSETS 30th SEPT., 1920 ^^^^st^Jj^SSii^ .-_... $362,338,975.00
Sir JOHN RUSSELL FRENCH. K.B.E.. General Manager
357 BRANCHES and AGENCIES in the Australian States. New Zealand. Fiji. Papua (New Guinea*, and London. The Bank transacts every description
of Australasian Banking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2.
AoKNTs: BANK OF MONTREAL. ROYAL BANK OF CANADA
C. S. GUNN & COMPANY
REAL ESTATE, INSURANCE, RENTAL AGENTS
805 Union Trust Building
WINNIPEG, MAN.
Members of Winnipeg Real Estate Exchange, Winnipeg Stock Exchange
George Edwards. F.C.A. Arthur H. Edwards. F.C.A.
H Pbrcival Edwards W. Pomerov Morgan VV. Hbhrert Tiio»
A. Geoffrey Edwards Oswald N. Eowaki
T. J. Macnamara T. p. Gegoie
K A. Maim. W. A LoiiiMEn
L. Atkikson
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO ..
CALGARY ..
VANCOUVER
WI.NINIPEG ..
MONTREAL
CORRESPONDENTS
HALIFA.X, N.S. .ST. lOHN. N.B
LONDON, ENG. PARIS. FRANCE.
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT.
NEW YORK, U.S.A.
-RICE & FIELDING, INC.-
FOREIGN FREIGHT FORWARDERS, CUSTOMS
BROKERS AND DRAWBACK AGENTS
81 VICTORIA ST.,
TORONTO
' CoRlSTiNE Bloc,
MONTREAL
CODES
Western Union
A B C. 5th & 6th Editions
OTHER OFnCES
II Bro»d\vay.
NEW YORK
40 Central S
BOSTON
Emjahla aotlctteJ In connection with cither Export or Import busir*
Are You a Trustee ?
I
F SO, you may be interested to learn that
this Corporation also acts as agent for per-
sonal Trustees, taking charge of the
administration of estates for them and
performs such duties as keeping estate
funds fully employed in high-class invest-
ments, collection of revenue, cutting cou-
pons, management of real estate, rendering
statements and remitting balances to bene-
ficiaries at regular intervals, keeping secur-
ties in Safety Deposit Vaults, etc. Many
Trustees find this the most satisfactory way
for them to administer an estate — by turn-
ing it over to us as their agent and at the
same time retaining the responsibility im-
posed on them under the Will.
Write or call for our rates on this class
of business.
THE
ToROiSTOGEAERAOfeUSTS
CORPORATIOiS
Head Office
sranches .
Otta
TORONTO
Winnipeg Saskatoon Vancouver
THE MONETARY TIMES
Volume 66.
Fifty Years of Fire Insurance in Canada
Underwriting Profit, While Fairly Good For Past Five Years, Has Been
Low For J Whole Period — Record of Canadian Companies Discouraging to
Capital — Expenses, Commissions and the Possibility of Government Control
By G. D. FINLAYSON
Superintendent of Insurance for Canada
THE record of fire insurance in Canada is fairly complete
for a period of fifty-one years, from 1869 to 1919. The
following figures give in summary form the experience of
the companies during this period:- —
Cash premiums received $557,971,971
Premiums earned $535,111,024
Losses incurred $327,676,803
Expenses incurred 176,863,919
■ 504,540,722
Underwriting profit $ 30,570,302
Profit per cent, of cash premiums 5.48%
In 1869 the companies and their business were classified
as follows: —
No.
Canadiaji 5
British 12
Foreign 2
Premiums.
$ 501,362
28%
1,119,011
63%
165,166
9%
19 $ 1,785,539
In 1919 the figures are quite different: —
No. Premiums.
Canadian 39 $ 6,415,838
British 40 20,377,871
Foreign 55 13,237,765
100%
16%
51%
33%
134 $40,031,474 1007o
Many Canadian Companies Quit
The most striking change in these comparative figures
is the reduction in the percentage of Canadian business, a^nd
for the explanation of this we must look to the discouraging
experience of Canadian companies, particularly in the earlier
years of the period.
In the year 1877 the St. John conflagration occurred, in-
volving &n insui-ance loss of over $5,000,000, and an esti-
mated property loss of over $13,000,000. This conflagration
brought to ruin three of the thirteen Canadian companies
then doing business and two others disappeared within a few
years, after a vain struggle for existence, and thereafter the
number graduaJly decreased until in 1896 the number reached
five, the same number as is found in 1869. It was not until
1905, twenty-eight years after the conflagration, that the
number of Canadian companies reached that of 1877, thirteen.
During the fifty years 25 Canadi&n companies have dis-
appeared, and their bleaching bones by the wayside appear
to have deterred capital from venturing on the perilous jour-
ney. Of the twenty-five companies, five disappeared by liqui-
dation and cancellation or expiry of their contracts and
twenty by reinsurance. The experience of the five is summed
up as follows: —
Premiums $ 5,221,840
Losses $4,005,023
Expenses 2,347,610
Total 6,352,633
Loss $ 1,130,793
*An address before the Montreal Fire Insurance Brokers'
Association.
The experience of the twenty is as follows: —
Premiums $22,494,978
Losses $16,345,6.38
Expenses 13,129,112
Total 29.474,750
Loss $ 6,979,772
Total loss on underwriting $ 8,110,565
Some of this loss may have been recovered in reinsur-
ance -by way of commission on risks in force, but the amount
of this is not ascertainable from the official statements.
Rewards Not Attractive to Capital
In the case of many of these companies a comparatively
small amount of additional capital would have enabled the
companies to overcome the final crisis, and to have re-esta^b-
lished themselves in the insurance field, but the appeal for
such assistance invariably failed to bring any response, nor
is this to be wondered at. The underwriting profit of Cana-
dian companies for the fifty-year period has been 0.84 per
cent.
If we confine our attention to the last five years the
record is a more cheerful one. The underwriting profit of
Canadian companies is 8.37 per cent, of the cash premiums,
and for all comp&nies 8.53 per cent. It is, however, evident
that the change in this respect is not sufficient to attract
capital to the fire business, in view of the high rates of
interest prevailing in other forms of investment.
Another evidence of the reluctance of Canadian capita-l
to enter the fire insurance business is to be found in the
fact that many nominally Canadian companies are controlled
or owned practically entirely by non-Canadian companies.
Ten years ago in 1909, of the 21 Canadian stock com-
panies then doing business, all but three were owned by purely
Canadian capital. At December 31, 1919, of the thirty-three
stock companies licensed for fire business, sixteen, or about
one-half, were owned or controlled by eompa^nies other than
Canadian, and during the present year, at least three more
have joined what is now the great majority.
Statutory Conditions
The fifty years under review has seen material changes
in the legislation respecting the conditions to be contained
in the policies. At the commencement of the period fire in-
surance policies contained such conditions as the companies
chose to insert, and in time it came to be felt that in some
cases these conditions bore too hardly upon the insured. It
was recognized that in a business subject to such great moral
hazard, the companies had to be pi-otected, but it w&s con-
sidered necessary to limit the extent to which they should
go in their own defence. In 1876 the province of Ontario
enacted statutory conditions to be inserted in the policies and
subject to variation only in a manner prescribed. These
conditions, while designed for the protection of the public,
are practically all protection for the companies, but the
a>mount of protection permitted is such as was deemed reas-
onable and fair.
There was considerable doubt at first in the minds of
the public and of the Courts, which, indeed, has persisted
until the pressnt day, as to the effect of a variation in the
February 11, 1921
THE MONETARY TIMES
Where There is No WILL There is No WAY
of overcoming the necessary legal delay in settling an estate
consequent on intestacy.
You know what intestacy means? The dictionary will tell you,
and a lawyer will confirm it.
But what it really means to those you wish to protect cannot
he described so shortly. It cannot be IMAGINED WITHOUT
ALAKM.
Every man and woman should make a Will at the earliest
possible moment, and should appoint The Union Trust Lonipatiy as
executor. Then his or her wishes will be carritd out faithfully.
Call and see us. or phone or write and we will send an officer
of this Company to see you. In any event, write for our booklet.
"Why a Will." It is interesting.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS
Winnipeg TORONTO London, Eng.
Saskatchewan General Trusts
Corporation, Limited
Head Oftice : Kegina, Sask.
Executor Adminittrator Attignee Trustee
Special attention given Mortgage Investments, Collections,
Management of Properties for Absentees and
all other agency business.
BOAKIt WF DIKEl'TOKS:
G. H. BARR, K.C.. Vice-President
don, K.C. J. A. M. Patrick. KC.
W. T. MOLLARD, P
H. B. Sampson K.C
A. L. Go
W. H. Dur
William Wilson
. MURPHY. General Ma
J. A. McBride
Official Administrator for the Judicial District of Weyburn
(Trustee under Bankruptcy Act)
Your Property
or Your Problems?
Which will you leave your family?
Make your Will. Appoint this Com-
pany your executor. Then your property
will be distributed in the way you would
have it, and the problems of its manage,
ment will be dealt with by an organization
equipped to solve them.
Write for our booklels.
National Trust Company
Limited
Capital Paid. Up
Reserve
18-22 KING STREET EAST
$2,000,000
$2,000,000
TORONTO
Providing for Education
In times of prosperity make certain that the education
of your children will he provided for in case of a reversal of
fortune. By placing a trust fund with us for investment,
an income can be provided to begin at any time and be
administered under any conditions you see fit to incorporate
in the af;reement. Write us for particulars
Chartered Trust and Executor Company
46 KING STREET WEST, TORONTO
JOHN J. GIBSON, Managing Director.
A Custodian of Your Securities
who is financially responsible und will relJcvt; you of the details
of collecting and depositing interest coupons, dividends, mort-
gage tnterest, rents, or other moneys, is something worth while
having. Our charge for such service is moderate. and ensures to
clients prompt attention and advice of moneys collected and
disbursed for them.
THE CANADA PERMANENT TRUST COMPANY
Paid-up Capital
$1,000,000
W. G. Gooderham
Col. A. B. Gooderham
F. Gordon Osier
E. R. C. Clarkso
TORONTO STREET
TORONTO
DIRECTORS
R. S Hudson John Massey
J. H. G. Hasarty John Campbell. S.S.C.
George H. Smith William Mulock
1 George W.Allan. K.C M. P.
I Br
nch : A. E. Hessin
When selecting a Trust Company as an Executor
choose one whose fixed policy is to give
FINANCIAL ASSISTANCE
To Estates being administered by it.
CAPITAL, ISSUED AND SUBSCRIBED ..81,171,700.00
PAID-UP CAPITAL AND RESERVE 1,172,000.00
The Imperial Canadian Trust Co.
Ezecntor, Administrator, Assignee, Trastee, Etc.
HEAD OFFICE : WINNIPEG. CAN.
V^
7E have 450 good businesses for sale
/ portion of Alberta. Everything fi
Store to a small Confectionery
in
om
the central
a General
If you
want a business i
n Alberta you
want us.
WHYTE & CO., LIMITED
111
Par
Business
tages Building
Broker.
- Edmont
on
Alberta
The Security Trust Company, Limited
Head Office
Calgary, Alberta
Liquidator, Trastee, Receiver, Stock and Bond Brokers,
Administrator, Execator. General Financial Agents.
W. M CO.N'NACHER Pres. and Managing Director
20
THE MONETARY TIMES
Volume 66
policy from the statutory conditions not set forth in the
manner prescribed. We thus find in 1877 in the decision of
the Court of Queen's Bench in the case of Uh-ich v. the Na-
tional Insurance Company, that it is stated that in such an
event the policy must be treated either as containing no con-
ditions or the statutory conditions only, and one of the judges
held that the statutory conditions not being printed in the
policy could not be deemed a part of the policy as against
the insured.
Recent Legal Decisions
Again in 1878, in the case of Frey v. the Mutual Fire
Insurance Company of the County of Wellington, the Court
of Queen's Bench held that where there are conditions in the
policy other than the statutory conditions which are iiot
printed thereon, the policy as against the insured must be
read as if without conditions, and this judgment was affirmed
by the Court of Appeal. Again, in the case of Parsons v.
the Citizens Insurance Company, it was held in the lower
Court that the company in such a case could not resort for
theii- defence to their own conditions nor to their statutory
conditions as they were not printed on the policy. This de-
cision was reversed by the Court of Appeal, but reaffirmed
by the Supreme Court of Canada.. On appeal to the Privy
Council, however, this part of the judgment was reversed,
and it was there held that whatever may be the conditions
sought to be imposed by insurance companies, no such con-
ditions shall prevail against the statutory conditions, and the
latter shrJl alone be deemed to be part of the policy and re-
sorted to by the insurer, notwithstanding any conditions of
their own, unless the latter are indicated as variations in
the manner prescribed by the Act. The penalty for not ob-
serving that manner is that the policy becomes subject to
the statutory conditions whether printed or not. Notwith-
standing this decision the view has since that time been ex-
pressed by the Ct^nadian courts that in particular cases the
statutory conditions do not interfere with the right of con-
tract between the company and the insured, even if such
contract involves a variation from the statutory conditions
not set forth in the prescribed manner. The recent judg-
ment of the Privy Council, and the Curtis Harvey case ap-
pears to confirm the opinion expressed in the earlier cases
that failure to observe the statutory conditions, even if the
variation is consented to by the insured, does not entitle the
company to resort to conditions other than the statutory
conditions. Notwithstanding the enactment of statutory con-
ditons there has been a great mass of litigation in connec-
tion with the interpretation of provisions of policies, and it
would appear to be impossible to so frame the conditions that
misconstruction will be impossible. Up to date there has
been a regrettable lack of uniformity in the conditions pre-
scribed by the various provinces, and it is to be hoped that
the efforts at present being made by the Bar Association for
uniformity will meet with success.
We have seen that from the experience of the companies
up to date, there ca« be little ground for the belief, often
expressed, that an undue profit has been made by the fire
insurance companies. The loss ratio has been approximately
.59 per cent, of the premiums received, the expenses incurred
being about 36 per cent. Criticism has frequently been di-
rected towards this latter item of the companies' business,
and it has frequently been charged that the expenses are
unduly high. Of these expenses, particular attention has
been directed to the commission paid to the agents for writ-
ing the business.
Expenses and Commissions
Looking at the average commission pajid by British and
foreign companies in Canada, it is evident that there has been
in recent years a perceptible increase in the rate. In 1909
the average rate of commission paid was 18.74 per cent., and
in 1919 this had increased to 20.56 per cent. In the foreign
companies the average commission in 1909 was 19.38 per cent,
and in 1919 21.20 per cent. During the nine years the rate
for both British and foreign companies increased by 1.82 per
cent, of the cash premiums received. During that period the
business of the British companies increased by approximately
100 per cent., and the foreign companies' business by over
200 per cent. The total ca«h premiums of all the British and
foreign companies in 1919 amounted to approximately two
and one-half times the total premiums in 1909, and with the
increase in the rate of commission, it follows that the pay-
ments to insurance agents during 1919 have amounted to
more than two and one-h&lf times the amount paid in 1909.
If the payments in the latter year had been made to the same
individuals, and to them only, as the payments in the former
year, there could be little cause for complaint on the part of
fire insurance agents, that their incomes had not kept pace
with the expense of transacting business. If we go further,
however, and ascertain to whom these payments were made,
we would probably find that the recipients in 1919 far out-
numbered the recipients in 1909. In other words, the addi-
tional payments in 1919 have been distributed among a
greatly increased number of agents, so that the average pay-
ment in 1919 has not increased in the ratio above stated.
Reasons for Dissatisfaction
The dissatisfaction which at present exists with pre-
vailing commission rates may be traced to the public, on the
one hand, and to the agents themselves, on the other, and so
far as I can judge the feeling at the present time, the criti-
cism by the former is less marked than criticism of the latter.
It is doubtful whether the public are so much concerned over
a few points one way or the other in the rates of agents'
commission. There can be no doubt, however, that there is
very much concern on the part of some agents operating a.t a
low rate of commission over the fact that other agents, many
of them in a position to transact business at a lower remun-
eration, are receiving rates of commission greatly in excess
of what they receive. This feeling is widespread, a.nd is not
confined to any particular section of the country. We find
in British Columbia, for instance, that agents in certain
larger cities are paid rates of commission 5 and 10 per cent,
in excess of the ratec paid the agents in the smaller centres.
This would be felt to be a^n injustice if the business of the
agents in the larger cities was confined to the risks located
in those cities, but the grievance becomes still more acute
when the preferred agents are permitted to write all the
business they care to in the smaller centres at the higher rate
of commission; nor would this be so bad if these agents took
from the smaller centres only such business as is offered to
them without solicitation, but we find the contrary to be true.
These agents are ever on the alert for a risk in the smaller
centre which can be transferred to the larger agency and
command the larger rate of commission. So much is this so,
that the agent in the larger centre has become somewhat
hardened to the idea that it is perfectly proper for him, as
an agent of his compa^ny, to transfer to his own agency as
much business outside his own district proper as he can, and
to exact from his company the higher rate of commission.
The conditions here described apply in the case of large
centres more or less throughout Canada. It is found, for
instance, in the city of Vancouver, the city of Winnipeg, and
to a very marked degree in the city of Toronto. Much of the
dissatisfaction in the agency field at the present time is caused
by this tendency on the part of agents in these larger centres,
and more often than not the rates that the public hear of, are
the high rates, until it becomes the common belief that the
entire business is burdened to the same extent.
It does not appear to have been considered by the agents
referred to that the practice of switching business from out-
side agencies to their own would if pursued to its logical
conclusion tend to abolish the agency system altogether; for
if a general agent can by a salaried representative, or with-
out a representative at all, handle a risk hundreds of miles
awa.y, the same course should be open to the head office or
Canadian branch in respect of the entii'e business and the
employment of agents on a commission basis would disappear.
If the increase in the rate of commission has been
necessary to provide insurancs agents with reasonable re-
February 11, 1921
THE MONETARY TIMES
INTEREST
RETURN
INVEST VOUR SAVINGS;
in a 5^% DEBENTURE of
The Great West Permanent
Loan Company
SECURITY
Paid-up Capital $2,413,018.81
Reserves 1,050,000.00
HEAD OFFICE, WINNIPEG
BRANCHES: Toronto, Regina, Calgary,
Edmonton, Vancouver, Victoria ; Edinburgh,
Scotland.
SIXTY-FIVE YEARS
is a long time in the history of this young Canada of ours, yet during
all that period we have been safeguarding and assisting in the increasing
of the savings of many thousands of Canadians. The steady progress
the Corporat'on has made bears testimony not only to the confidence
invest or-s have in this old institution, but also to the unexcelled facilities
we extend to depositors-
Interest allowed at
THREE AND ONE -HALF
per cent, per annum, paid and compounded hilf-yearly.
The Corporation makes a special feature of Savings Accounts, and
welcomes the small depositor.
Canada Permanent Mortgage Corporation
l-t-lS TORONTO STREET
TORONTO
Paid-up Capital $6,000,000.00
Reserve Fund (earned) 5,750,000.00
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
.Masonic Temple Building. London. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PURDOM.K.C, President NATHANIEL MILLS. Manager
London and Canadian
Loan and Agency Co.,
Limited
ESTABLIBHKD 1873
51 io:\«;k mt., t»b<»>to |
Paid-up Capital, Si. 250.000
Rest. $9.i0.000 Total Asse
s. $5,085,872
itebentares issued, one hundreJ dollars and upwards, one to five years-
Best current rates. Interest payable half-yearly. These Debentures arc an
Authorized Trustee Investment. Mortgage Loans made in Ontario, Mani-
toba and Saskatchewan.
WILLIAM WBDD. Secretary
V. H. WADSWORTH.
Manager. {
THE
Ontario Loan
& Debenture Co.
LONDON Incorporated 1870 Canada
CAPITAL AND Undivided Profits .. $3,900,000
i)2/o
SHORT TERM (3 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
512
JOHN -McCLARY. Presiden
A. M. SMART. Manager
r^VER 200 Corporations,
^^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office. No. 13 Toronto Street
Capital Account. .*; JI,.'..VI.(MI Reserve Fund. SliTO.OOU.OO
Total Assets. Wi.'.'lil.l.'U.'i*
President. \VhLLlNGTO.\ FRANCIS. Esq.. K-C-
VicePresident, HKRBERT LANGLOIS, Esq.
Debentures issued to pay 5?o. a Legal Investment for Trust Funds.
Deposits received at A% interest, withdrawable by cheque.
Loans made on improved Real Kstate on favorable tt-rms.
WALTER GILLESPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inqairiei Invited
Clrnrral .Manager LIrut.-rnl. <i. 11. DOKRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fidnciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official .\ssignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office
Swift Current, Saskatchewan
JOHN R LITTLE. Managing Director
THE MONETAEY TIMES
Volume 66.
munera.tion, there would be little objection taken by the pub-
lic to the increase. If the increase in commission has not
been necessary for this purpose, then it is in the public in-
terest that the tendency to increase should be checked, and it
is most desirable that this check should be imposed by the
companies themselves. It does not seem too much to expect
that the companies, by arrangement among themselves,
should remove the discrimination which at present exists be-
tween various sections of their territory, and all would prefer
that the companies should be given an opportunity to set
their own houses in order in this respect. If this cannot be
done, it is the duty of the government to do so. It must be
realized, however, that if the aim is the benefit of the public,
the control of commissions leads logically to the control of
rates and the control of rates leads logically to an illogicality,
for how a particular rate can be effectively controlled when
there is no obligation on the part of the insurer to assume
the risk, is difficult to understand. The public will be little
benefited if the saving in commissions is retained by the
companies and some means of diverting to the public the
benefit of lower expenses must be sought if control of ex-
penses is to be justified.
As an alternative to supervision or control of rates in
detail, some attention is now being paid to arriving at some
basis which will indicate when rates in the aggregate should
be increased or decreased.
Allowance for Reserves
The proposition which is being considered in the United
States is that there should be an agreement as to what al-
lowance sould be made for conflagration reserve; what profit
should be allowed the companies on their underwriting; on
what basis the premiums a.nd losses should be calculated for
the pui-pose of determining that profit; and what portion, if
any, of the interest earnings of the company should be taken
account of in the profit. Agreement appears to have been
reached on all points except the last, the tentative basis being
as follows: —
1. The conflagration allowance shall be 5 per cent, of
the premiums.
2. The premiums entering into the computation of profit
shall be the premiums earned.
•3. The losses shall be the losses incurred.
4. The period shall be not less than five years.
5. A conflagration shall be deemed to be a fire causing
a loss of $1,000,000- or over, losses under $1,000,000 to be in-
cluded in the underwriting account.
6. The question of interest on the reserve fund is still
undecided. A suggestion is that 2 per cent, of reserve be
included in he underwriting account.
On this basis a computation would be made covering a
five-year period as follov/s: —
Premiums earned $
Interest on reserve fund . . $
Losses incurred $
Expenses incurred
Conflagration allowance .
Profit S
If this profit exceeds 5 per cent, of the premiums in any
state a reduction of premiums will be regarded as necessary,
if it is less than 5 per cent., an increase should be made.
This method of attackin.f; the problem will be admitted
to be much preferable to an attempt to fix or control or super-
vise individual rates on particula-r classes of property. It
recognizes the fact that rating is an intricate science, which
must be performed by properly equipped experts if discrim-
ination and guesswork is to be avoided, while it aims to bring
together the companies and their clients in a general agree-
ment as to when rates in the aggregate shall be increased
or decreased. It does not fix profits, for within the five-
year period the profits may be very large; on the other hand
the losses would have to be great enough to bring the five-
yep.r pi'ofit below 5 per cent, before increased rates would be
justified. If such an agreement could be arrived at, legisla-
tion on the question would be unnecessary.
The Future
As to the prospects for the future, I realize that the
role of a prophet is a dangerous one, and what I shall say
on this part of the subject will be brief and more in the
nature of a hope than a prediction. I believe we are facing a
period of lower fire losses than we have experienced in the
past. Better construction, the inducements offered by the
system of rating to install fire protective devices and the
increased attention being paid to fire prevention by the pub-
lic generally, warrants this belief. We are, no doubt, at a
critical period at the present time, but we have already come
through what has always been regarded as a period of great
moral hazard and the consequences have not been serious.
I believe the future holds in store a better prospect for
the fire insurance agent. With increasing experience the
field by useful public service widens and evidence is not
lacking that fire insurance agents are being more and more
attracted by the opportunity to conserve property which is
presented to them by their profession. This tendency will
be increa.sed with the perfection of the organization of the
agents, and I am glad to see that the example of the Montreal
agents is being followed in other cities and provinces. I
have just one suggestion to oflfer and that is that as soon
as possible there should be formed the Dominion Fire In-
surance Agents' Association, meeting in annual conference
E't which your problems will be considered and solved. And
in the constitution of that association give prominence to the
fire-prevention idea. A proper recognition of the public ser-
vice to be performed is the surest guarantee against the
development in such an organization of a purely selfish or
class movement and when we consider that the agency ranks
are filled by many of the best citizens in the towns and cities
of this country, I believe that any fear that may exist on
that score may be dismissed.
The increase in volume of business during the next de-
cade is bound to be enormous. The proper development of
our manufactures, trade and commerce, calls for adequate
insurance facilities and the degree to which the public de-
mand therefor is satisfied will depend very largely upon you.
For myself, I have every confidence that your response will
be satisfactory to the public and to the companies you
represent.
CLAY PRODUCTS ASSOCIATION CONVENTION
The nineteenth annual convention of the Canadian
National Clay Products' Association was held in Toronto,
January 25 to 27. It was attended by about 150 members
from all over Canada. The officers elected for the ensuing
year are as follows: — President, Ryland H. New, Hamilton;
first vice-president, Millard F. Gibson, Toronto; second vice-
president, T. H. Graham, Inglewood; third vice-president,
Andrew Dodds, Mimico; secretary -treasurer, Gordon C.
Keith (re-elected).
The convention was opened with an address by the past
president, Wm. Burgess, who strongly denounced the pro-
posed bill to fix an eight-hour day limit for the province.
Mr. J. Clark Reilley spoke optimistically on the "Outlook
in the Building and Construction Industries." He said that
unemployment was no worse now than in 1913-14, but was
more emphasized, which, he thought, aggravated the con-
dition. He strongly urged the commencement of govern-
ment work, which had been planned, and was being held up.
That the brick industries had lowered their prices during
the winter by $1 to $4 per thousand, according to the grade,
was a fact which he thought should be given more publicity.
To keep wages at their present level, but in turn to exact
value in the work of the employees, he preferred rather
than the cutting of wages.
February 11, 1921
THE MONETARY TIMES
23
Cv
kAweikenin
idu-
ind
"So Jim is getting $5,000 a year —
I can hardly believe it- —
It's just three years since Jim and I gr
ated from High School together —
We started in the same office —
$18.00 a week—
That seemed big to us then —
We were enthusiastic —
Planned big things —
it's over a year since I heard from Jim,
now the news —
' 3 increases within the year and now
head accountant for Jones & Co."
This sure is a record " —
"Well — here's congratulations, Jim — old
boy — you deserve it —
Yes — and here I am plugging away at $25
a week —
Some difference between Jim and me noH' —
it's just a year since Jim saw the SucCesS
coupon —
It was the turning —
It pointed to bigger things —
He studied " —
From now on 11! make the hours count —
and, believe me, a year from now I'll have a
surprise for Jim."
Example is usually better than argument,
Jim has set the pace —
His friend follows.
IVhat about \)ou — you who are reading this
message now?
Here is the coupon that started Jim — the
coupon his friend has just mailed — the cou-
pon that will start you, too, on the sure road.
Sign it.
The Shaw Correspondence School
TORONTO - CANADA
W. H. SHAW.
President
C. W. CHANT,
The Shaw Correspondence School,
Toronto, Canada (Dept. M.T.)
Dear Sirs: —
"With me — well, it's jusc 3 years wasted —
no progress — no advancement — still doing
junior work — still receiving junior pay —
Jim followed Lincoln's example —
He studied — got ready— his chance came —
But Jim is not the only one — Many have
climbed by this sure road —
Thank goodness / am now awal(e —
I've mailed that Coupon to-night —
Please i
I ha
Higher Accounting
Chartered Accountancy
Cost Accounting
Modern Banking
Economics
Bookkeeping
Shorthand
Typewriting
Name ..
the course or
Commercial Art
Illustrating
Story Writing
Journalism
Show Card Writing
Advertising
Photography
Salesmanship
ililililllllDllilllllllillllllliilliililliiiliilllillllllLllililllllillilililliilillillillllllillllilllilliiiiiiliiiililiii:
24
THE MONETARY TIMES
Volume 66
CANADA'S JANUARY BORROWINGS, $38,000,000
I'rovincial and Railroad Financing was Largely Responsible
for this Substantial Amount. Although Municipal
Bond Sales Were Also Heavy — Bulk of New-
Issues Last Month Were Placed Here
CANADA'S borrowings in the first month of 1921 totalled
$38,054,035, compared with $34,770,555 in December,
1920, and $20,504,077 in January a year ago. Last month's
total was made up largely of provincial and railroad issues,
although municipalities participated to a considerable ex-
tent.
A comparison of the figures with a year ago shows some
interesting 'facts. For instance, in January, 1920, all the
provincial bonds, totalling some $9,000,000, were placed in
the United States, while this year out of an amount of more
than eig'hteen millions only two millions went across the line.
All of the Grand Trunk issue was disposed of to our southerly
neighbors, but outside of this, with the exception of a few-
odd transactions which are always taking place, the balance
of the financing was arranged here.
The following figures show the amount of bond sales
in January, 1920 with comparisons: — -
Provincial .
Municipal
Railroad . .
Corporation
Totals
Jan., 1921, Dec, 1920.
$18,250,000
5,754,035
12,000,000
2,050,000
$17,750,000
5,370,555
11,650,000
Jan., 1920.
$ 8,950,000
3,404,077
7,500,000
650,000
$38,054,035 $34,770,555 820,504,077
PKOVI.VCES
.>II.\ICIP.1LITIKS
Hamilton
Windsor. Ont.
YorUTownshir
Sault Ste. .Marie
St. Catharines
Sudbury
Scarboro Township..
Oshawa
Brampton
Niagara Falls
Watford
Norfolk County
Merritton
EtobicoUe Township.,
Barton Township , ,
Capreol
•Jiiebee-
Three Rivei
Lachinc. .
730,000
450.960
447.5S5
•ifi'i.OOO
195.500
184,000
160.000
130.000
125,000
6l,i;i9
58.807
52.000
.iO.OOO
30.000
30.000
23.744
17.000
iVoTa Srotlii-
Halifax
Halifax
Dartmouth . .
Windsor
\ew KrniiKMlek-
City and County of St. John.
Nniiltoba—
Vinnipeg
32S.000
150.000
100.000
37,000
Saskatrliewnii-
School Districts
Rural Telephones.,
Alberta-
Georgetown, S. D
Westlocit Cons.
Cranstone Dale
Krltlsli Colniiibla-
New Westminster
.North Vancouver
3.S00
4,300
3,500
K AILIE0.4D
Grand Trunl< Railway
('OKIMIK.4TIOK
.Maritime Telegraph & Telephone Co.,
;Co.
, Ltd.,
6 ..>( 6i
Sl5 year:
5&6 I
5* &6
6-ye
■ Serial
10 years
July. 1953
20 years ^i
30 years
20 year
30 year
IS years
15 years
10 years
30 instalments
30 instalments
Various
10 instalments
30 instalments
15 instalments
30 years
20 instalments
Various
10 & 20 years
6.39
5.SS
6.40
6.40
6.60
6,85
6.59
6.4S
6.50
6.80
A- Jarvis & Company and Syndicate
Dominion Securities Corporation. National City
Co., Ltd. and Harris. Forbes & Co.
Wood.Gundy& Company, A. Jarvis & Company and
A. E. Ames & Company
W. A. Mackenzie & Co. and R. A Daly & Co.
A. E. Ames & Company and L'nited Financial Corp.
A. E. An
i & Company
United Financial Corporation and R.C. .Matthew
& Company
Dominion Securities Corporation
Bnited Financial Corporation
Wood. Gu.idy & Company
Harris. Forbes & Co.. and C H. Burgess & Co.
C. H. Burgess & Company
Harris. Forbes & Company
R. C. .Matthews & Company
Canadian Debentures Corporation
United Financial Corporation
C- H. Burgess & Company
R. C. Matthews & Company
Dyment. Anderson & Company
Wood. Gundy & Company
W, L. McKinnon It Company
C. H. Burgess & Company
Local Dealers
J. .M. Robinson & Sons
Royal Securities Corporation
Eastern Securities Company. Limited
Eastern Securities Company. Limited
A. E. Ames & Company and Locally
W. Ross Alger \- Company
W. Ross Alger & Company
W, Ross Alger & Company
Dillon, Read & Company and Syndicate
Harris. Forbes & Company, Inc , and the Roja!
Securities Corporation
Privately
Peabody. Houtling & Company
96.21
101.11
94,42
96.22
91.50
97,37
104.277
95,06
100.18
91.87
97.27
95.95
95.137
95.38
97.305
83.00
96.66
91 .35
95.63
95,00
90,00
96. B3
February 11, 1921 THEMONETARYTIMES 25
■iiiiiiiiiiiniiwiiiiiiiiinMiiiiiiiiiiiiH
EXTRACTS FROM THE g
THIRTY-SECOND ANNUAL REPORT |
OF THE S
DOMINION LIFE I
ASSURANCE COMPANY |
HEAD OFFICE Established 1889 WATERLOO, ONT. 1
Substantial Progress made in ail Departments of the Company's Business ■
Policies Issued and Revived , $16,734,967.50
Previous Year 12,140,884.00
Increase 38 per cent $ 4,594,083.50
Total Business in Force 45,348,883.63
Previous Year 35,472,313.00
Increase 28 per cent, § 9,876^555^63
Total Net Income 1,879,880.63
Previous Year 1,571,495.14
Increase 20 per cent $ 308,385.49
Gross Assets 6,167,935.82
Previous Year 5,464,457.57
Increase 12 per cent ~S 703,478^
Reserves 5,240,657.00
Previous Year 4,497,788.00
Increase 16 per cent "S 742.869.00
408
lliaillllPIIMItiHP"M"MM»NMIIMIIIlllinillllB^
The Manitoba Farmers' Mutual
Hail Insurance Company
HEAD OFFICE - 302 CONFEDERATION LIFE BUILDING, WINNIPEG
TWENTY-SECOND ANNUAL REPORT
A Record of Sound Progress
ASSETS LIABILITIES
Cash on hand and in Bank $14,108.38 Agents' Balances $ 454.31
Investments — Bonds and Mortgages 105.493.27 Contingent Commissions 1.343,12
Assessment Notes— Reserve for Bad and Doubtful Debts 9.000.00
Year 1920 $13,431.27 Surplus 132.400.68
Prior Years 8.791.54
• 22.222.81
Equipment —
Automobile and Office Furniture 700.00
Accrued .Interest 673 43
$143,198.11 $143,198.11
SUMMARY OF 1920 BUSINESS
Insurance Written in Manitoba $2,400,000
Increase over 1919 410,000
Increase in Assets over 1919 52,631
Rebate or Discounts Returned to Policy Holder* 21,500
Our Premium Income for 1920 in Manitoba exceeded any other individual Hail Insurance
Company by $80,000. A purely Mutual Company, not run for profit, but service at cost.
G. S. FRANCIS,
Manager.
26
T H F- MONETARY TIMES
Volume 66.
JANUARY FIRE LOSSES UNUSUALLY SMALL
Estimate of $2,237,900 is Lowest Since 1917— Halifax,
Sydney, Toronto and Winnipeg Had Biggest Fires
FIRE losses in Canada in January are estimated by
The Monetary Times at $2,237,900, made up as fol-
lows:—
Fires exceeding $10,000 $1,625,000
Small fires reported 112,900
Estimate of unreported fires 500,000
$2,237,900
Depreciation in the value of stocks has undoubtedly
led to some incendiary fires. These have fortunately been
small for the most part. There were only four fires in Janu-
ary causing a loss of $100,000 and over. These were at
Halifax, Sydney, Toronto and Winnipeg.
The following are the January fires causing damage
of $10,000 and over: —
Glace Bay, N.S., Jan. 12, hotel, $30,000.
Quebec, Que., Jan. 2, store, $25,000.
St. Hyacinthe, Que., Jan. 4, stores, $25,000.
Beamsville, Ont., Jan. 19, factory, $40,000.
Caribou, N.B., Jan. 8, Ritchie Block, $50,000.
Halifax, N.S., Jan. 19, store, $150,000.
Hull, Que. Jan. 17, factory, $10,000.
Narcisse, Man., Jan. 12, warehouse, $10,000.
North Sydney, N.S., Jan. 10, warehouse, $25,000.
Ottawa, Ont.", Jan. 16, building, $15,000.
Paris, Ont., Jan. 15, rink, $20,000.
Sarnia, Ont., Jan. 17, icehouse, $40,000.
Swift Current, Sask., Jan. 10, city hall, $65,000.
Sydney, N.S., Jan. 14, business block, $200,000.
Toronto, Ont., Jan. 7, building, $60,000.
Toronto, Ont., Jan. 15, building, $24,000.
Upper Cross Creek, N.B., Jan. 12, mill, $25,000.
Whitby, Ont., Jan. 13, hospital, $60,000.
Montreal, Que., Jan. 14, plant, $60,000.
Moose Jaw, Sask., Jan. 23, building, $50,000.
New Liskeard, Ont., Jan. 26, building, $10,000.
Prince Albert, Sask., Jan. 20, theatre, $90,000.
Tyron, P.E.I., Jan. 12, workshop, $12,000.
Weston, Ont., factory, $30,000.
Winchester, Ont., Jan. 20, offices, $12,000.
Beauceville, Que., Jan. 26, store, $20,000.
Indian Lorette, Que., Jan. 30, factory, $60,000.
Ottawa, Ont., Jan. 29, building, $70,000.
Sackville, N.B., Jan. 13, University building, $35,000.
Toronto, Ont., Jan. 28, Forum building, $200,000.
Winnipeg, Man.., Stovel building, $100,000.
Analysis of Causes
Among the causes reported were: — Explosions, 7; over-
heated furnace, 4; defective wiring, 3; sparks, 2; incen-
diarism, 1; cigar stub, 1; matches, 1.
The following structures were destroyed or damaged: —
Stores, 21; buildings, 15; factories, 12; residences, 13; barns,
8; apartments, 3; garages, 3; business blocks, 3; mills, 3; ice-
houses, 2; hospitals, 2; post offices, 2; pool-rooms, 2; car, 1;
lighthouse, 1; hotel, 1; rink, 1; clubhouse, 1; bakery, 1;
city halls, 1.
The following is a list of deaths from fire in January: —
Glace Bay, N.S., Jan. 12, burnt in building 1
Toronto, Ont., Jan. 11, explosion 1
Fauquier, Ont., Jan. 26, playing with matches 2
Kingston. Ont., Jan. 28, burnt in building 3
London, Ont., Jan. 31, burnt in building 4
Montreal, Que., Jan. 23,- clothing caught fire 1
Brampton, Ont., Jan. 12, burnt in dwelling 1
LaS'arre, Que., Jan. 17, burnt in building 1
Windsor, Ont., Jan. 12, explosion 1
Parkhill, Ont., Jan. 12, clothing caught fire 1
Montreal, Que., Jan. 9, clothing caught fire 1
17
Comparison of Deaths
The record of deaths from fire has been as follows:
Month.
1914. 1915. 1916. 1917. 1918. 1919. 1920. 1921.
January 26
10 21 28 13 22 17
February 18 11 23 19 87 26 30
March 27 23 23 20 34
April
Blay . . . .
June
July . . . .
August
September
October
November
December
Totals
The .1/,
the following
Month.
January
February
March
April
May
June
July
August
September
October .
November
December
22 14
5 14
2 6
13 268
14 30
27 6
7 39
12 12
. . 19 11 94 15 26 19 18
. . 175 142 531 207 241 225 227 17
•tary Times' record of the past four years shows
monthly losses: —
1918. 1919. 1920. 1921.
$ 2,688,556 $ 3,915,290 $ 2,637,850 $ 2,237,900
2,243,762 1,091,834 1,895,575
1,682,286 2,154,095 1,793,200
3,240,187 1,080,070 3,229,500
3,570,014 1,785,130 2,001,819
3,080,982 3,337,530 1,424,319
3,369,684 1,118,377 1,426,850
3,110,445 1,374,495 1,857,800
917,286 1,940,272 2,480,485
5,119,145 1,023,288 2,467,901
1,059,580 2,339,870 2,769,800
1,733,917 2,047,496 3,721,475
Totals . . $31,815,844 $23,207,647 $27,706,574 $ 2,287,900
CANADIAN LUMBERMEN'S ASSOCIATION
The thirteenth annual convention of the Canadian Lum-
bermen's Association was held in Montreal, January 12 and
13, vrith an attendance of some 150 of the 175 members. An
address was given by President D. McLachlin, of Arnprior,
Ont., in which he expressed doubt as to whether the price of
lumber would materially decrease for a considerable time,
chiefly on account of high freight rates and because present
production for various reasons is away below the pre-war
record.
The Board of Railway Commissioners came in for a
great deal of criticism. Various speakers charged that it
was unfair to the lumbermen that the personnel of the board
did not include the right type of men, that freight rate in-
creases were allowed almost automatically without the lum-
bermen being properly notified, and that the usefulness of
the railway board was past because of the fact that Canada
now owned half of the railroads.
The action of Ontario in connection with the Workmen's
Compensation Act was also criticized. When one speaker
said the province proposed at next session to pay injured
workmen 100 per cent, of their former salary or wage, in-
stead of 75 per cent., as now, A. E. Clark termed the pro-
posal "so utterly ridiculous" that he said reasonable men
should get together and take action.
Action was taken to combat a pi'oposal pending before
the Ontario legislature to limit the use of wooden shingles,
because of fire considerations. This was strongly opposed
and a committee appointed to f'cal with the matter.
February 11, 1921
THE MONETARY TIMES
■ ■■■■■■■■■■I ■-»-»-»-l
Service
On Victory
Bonds
Our Victory Depart-
ment will give you
at any time, the ex-
act quotations of all
Victory issues now
traded m on the
open market, either
to buy or to sell.
We will buy any
Victory Bonds on
our partial payment
plan.
Write for particulars
Greenshields & Co.
Investment Bankers
14 King Street East, Toronto
Montreal Ottawa
!■■■■■■■■■■■■■■■■■■
The Sovereign Life
Assurance Company
of Canada
Head Office — Winnipeg, Canada
The Annua] Report of the Sovereign
Life for 1920 shows the follo>
results : —
)wing
Net Income - - - $ 519,874.21
Assets - - - 1,876,792 99
insurance Written and Revived 4,335,800.00
Insurance in Force - - 14,528,336.00
Interest Earnings, 6.69'^.
Special Reserve Funds, $70,000.00.
Additional Surplus, $109,816.05.
Paid to Policyholders since organization,
$1,043,053.26.
Paid to and held in trust for Policyholders,
$2,673,994.33.
A YEAR OF SOLID
SUBSTANTIAL PROGRESS
Detailed Report upon Request
OFFICERS :
ROBERT R. SCOTT. President
WM. GRAYSON. K.C. D. E. WILLIAMS
1st Vice-President 2nd Vice-President
R. L. DONALDSON
Treasurer
ERNEST ATKINS E. W. MONTGOMERY. M.D.
Chief Accountant Medical Director
M. D. GRANT. F.I.A. H. J. MEIKLEJOHN. M.D.
Secretary and Actuary Managing Director
BOARD OF DIRECTORS:
ROBERT R. SCOTT
WM. GRAYSON. K.C
D. E. WILLIAMS
JOHN McCLELLAND
R. G. MACDONALD
W. SANFORD EVANS
WILLIAM F. HULL
E. E. SHARPE
JOHN GRAHAM
ALEXANDER MELVILLE
GEO. N. JACKSON
H. J. MEIKLEJOHN.
M.D.C.M.
28
THE MONETARY TIMES
Volume 66
The Twenty 'Eighth Annual Meeting of
The Home Investment and
Savings Association
The 28th Annual Meeting of the Shareholders of the
above Association was held at the He3d Office, Winnipeg, on
Monday, February 7th, at 4 o'clock p.m.
The president, Mr. M. Bull, acted as Chairman, and the
Assistant Manager, Mr. W. E. Hobson, as Secretary.
The Directors' Report, and Financial Statement as fol-
lows, were presented.
To the Shareholders: — •
Your Boai'd has much pleasure in submitting herewith
the Balance Sheet of the Association, as at December 31st,
1920, as well as a statement of the Profit and Loss Account,
showing the result of our operations for the twelve months
ending on that date.
As is our custom, the Loans have been examined by an
Inspection Committee, whose report will be presented to
the Meeting.
The general feeling of regret felt by this Community
in the death of Mr. P. C. Mclntyre last autumn, was fully
shared by the Members of your Board. Mr. Mclntyre had
been the Vice-President of the Association since its inception,
and had taken a great pride in its continued prosperity. We
will miss him very much, and would tender to Mrs. Mclntyre,
and other members of his family our very sincere sympathy
in their great loss.
M. BULL, President.
Winnipeg, January 31st, 1921.
Balance Sheet at 31st December, 1920
ASSETS.
Loans on First Mortgage on Improved Real
Estate $1,612,338.64
Contracts Receivable on Real Estate Foreclosed
and Resold 320,191.23
Interest on Mortgages, etc., accrued due 103,933.04
Interest on Mortgages, etc., accrued not due.. 37,602.68
Municipal Debentures 6,572.19
Dominion Government War Bonds and Accrued
Interest 163,638.99
Home Office Building 100,000.00
Real Estate 59,174.50
Inspector's Automobile 800.00
Office Furniture 1.00
Cash on hand and in Bank of Montreal. ...... 38,034.15
$2,442,286.42
LIABILITIES.
To the Public:—
Debentures and Accrued Interest... $150,661.14
Deposits at Call 487,344.47
Deposits for fixed term 44,928.89
Home Office Building, Mortgage
and Accrued Interest 89,675.00
Sundry Accounts 17,223.27
$ 789,832.77
To the Shareholders: —
Capital Stock paid up (Subscribed
$1,000,000.00) $992,482.76
Reserve Fund 500,000.00
Contingent Fund 50,000.00
Dividend payable January 3rd, 1921 19,848.90
Profit and Loss Account 90,121.99
$1,6.52,453.65
$2,442,286.42
PROFIT AND LOSS ACCOUNT FOR YEAR ENDED
DECEMBER 31st, 1920.
Balance brought forward from previous year... $ 74,997.89
Adjustment Dominion Government Tax for year
ended 1919 ". . . . 534.89
$ 74,463.00
Premium paid on Capital Stock 10.00
Net Profits for this year after de-
ducting interest on borrowed
capital and expenses of Manage-
ment $106,411.72
Provincial Government and
Business Tax $1,129.81
Dominion Government
Taxes 10,241.52
11,371.33
95,040.39
$169,513.39
Four Quarterly Dividends at rate of 8% per
annum 79,391.40
Balance Carried Forward $90,121.99
Mortgages in the amount of $88,951.77 are deposited
as collateral with trustees for debenture holders.
We have to report to the Shareholders that we have
audited the books of The Home Investment and Savings
Association for the year ended December 31st, 1920.
We hereby certify that the accompanying Balance Sheet,
and Profit and Loss Account are in accordance with the
books, and, in our opinion are properly drawn up so as to
exhibit a full and fair statement of the financial position of
the Association as at December 31st, 1920, and the result
of the operations for the year ended that date. All our re-
quirements as Auditors have been complied with.
MARWICK, MITCHELL & COMPANY,
Chartered Accountants^
Winnipeg, Man., January 30th, 1921.
REPORT OF INSPECTION COMMITTEE.
To the President and Directors of The Home Investment
and Savings Association: —
Your Committee, appointed to inspect all the loans on
the ledgers of the Association, has completed its work and
begs to report as follows: —
During the past year there has been a gratifying de-
crease of about 40% in the monthly loans, which are four
instalments or more in arrears.
There has been some increase in the number of town
and city properties on which the interest is two or more
years in arrears. This is partly accounted for by the in-
crease of loans of this character, due to the sale of pro-
perties acquired by the Association.
There has been a considerable increase in the number
of farm loans on which interest payments are two years or
more in arrears. This is largely due to crop failures in
certain parts of Saskatchewan and Alberta.
The number of properties in the hands of the Associa-
tion has been reduced 65%, notwithstanding the fact that a
(Continued on page 29)
February 11, 1921
THE MONETARY TIMES
29
Features of 1920
— the Record Year of
THE
"Older than the Dominion of Canada"
Increase in Increase in
Savings Deposits Huron & Erie Debentures
(withdrawable by check) (Payable in Canada)
$ 1 ,488,646.00 $ 1 ,395,457.00
Savings Deposits now total $5,543,487 These Debentures now total $7,721 ,586
Increase in
Assets
$2,212,000.00
Increase in
Reserve Fund
$150,000.00
Assets now total over $22,500,000 Paid-up Capital and Reserve now $6,1 50,000
Toronto Branch Office
The Canada Trust Building
King Street East, third Building from Yonge Street
J. M. McWhinney, Manager
R. P, Baker, Investment Manager
Head Offices-London. Canada
Branch Offices — London (three). Winnipeg, Regina. Edmonton. Windsor. St. Thomas, Chatha
T. G. Meredith. K.C.. PreBldent Hume Cronyn, General Manager
M. Aylaworth, Assistant General Manager
THE HOME INVESTMENT AND SAVINGS ASSOCIATION
(Contmued from page 28)
large number were taken over during the year. The income
derived from properties still held has increased, and it
seems probable that most- of these will be sold during the
coming year.
It must be borne in mind that many of our loans would
be in better condition were it not for the Moratorium and
other legislation enacted by the Western Provinces.
After a careful survey of the loans, we believe that the
securities held by the Association are ample for the ad-
vances made.
Annotated lists of loans in arrears ai-e submitted here-
with. I
Your Committee wishes to express its appreciation of
the efforts of the office staff in securing prompt payments
on the loans and of the assistance so readily given during
this inspection.
F. H. SCHOFIELD,
JOHN A. FLANDERS,
Inspection Committee.
Winnipeg, January 21st, 1921.
The retiring Directors, Messrs. M. Bull, W. A. Black, F.
W. Drewry, F. H. Schofield, W. H. Cross, W. A. Windatt, G.
W. Allan. K.C., M.P., and W. A. Matheson, were unanimously
re-elected. At a subsequent meeting of the new Board Mr.
Bull was re-elected President; Mr. W. H. Cross, Vice-Presi-
dent, and Mr. W. A. Windatt, Managing Director. 400
THE MONETARY TIMES
Volume 66.
FURTHER BOARD OF TRADE REPORTS
Newfoundland's Industries Underwent Strain and Trade
Contracted — Moose Jaw District Benefited by Crops
GENERAL trade conditions which prevailed in Newfound-
land in 1920 were not different from those in almost
every part of the world. Thei-e was, however, this difference,
that whereas in other countries the effect Of business read-
justment has been divided over many industries and trades,.
in Newfoundland it has fallen almost entirely on the main
industry which is the fisheries.
, During- the past year the cod fishery has been small as
compared with other years, the shortage amounting to from
400,000 to .500,000 quintals, and at the present time the stocks
on hand are also considerably smaller, amounting to 450,000
quintals, r.s against 1,000,000 quintals in 1918 and 700,000
quintals in 1919.
The problem of marketing the catch has been one of
great difficulty from a variety of reasons, according to the
twelfth annual report of the Newfoundland Board of Trade.
Commencing with the stock of fish on hand at the beginning
of the year, and continuing on to the fish season of 1920,
difficulties after difficulties had to be met with the continual
decline in value. There were serious losses made on the
marketing of the old 1919 fish; further losses on the new fish,
and still more losses must be faced before the stock now on
hand can be disposed of. It is considered fortunate that the
stock now on hand is smaller than for many years.
Under normal conditions the position of the Dominion's
stocks would mean a very strong market and would contain
every element tending to profit making on the part of
holders. The only condition against such a result is the un-
settled financial conditions of the world and the general
nervous state of all traders. The stock on hand is not more
than sufficient to meet the demands and it is the opinion that
if holders will avoid forcing supplies, the fish can be
marketed satisfactory.
Other Fisheries
The seal fishery of the past season was one of the
smallest on record, and the ships prosecuting the fishery only
brought in 33,985 seals of a net weight of 757% tons. The
failure of the fishery was due to the inability of the steamers
to reach the main body of seals. An attempt was made to
send some of the steamers on a second trip, but this was
prevented by the refusal of the crews to continue the voyage.
Poor returns to the packer and exporter were given by
the herring fishery. The spring pack of split herring was
comparatively small, and although fair prices were paid to
the packers it did not leave any margin of profit on account
of the high cost of salt, nets and barrels. The exporters
who purchased the spring pack have found some difficulty in
disposing of them. The American market is not consuming
any quantity of split herrings and the West Indian markets
are not active. Exports from July 1, 1919, to June 30, 1920,
were: Salt bulk and frozen herring, 13,142 barrels and
pickled herring, 129,980 barrels.
The lobster situation opened with good prospects, but
pr'c?^ have rapidly declined, and for some months the posi-
tion has been that there were no buyers. Cost of production
was higher than ever before, and a loss will have to be taken
all round before the catch is marketed. There are now only
about 2.800 cases held on the Island, and it is expected that
these will be disposed of before next season's pack commences.
Exports of cod oil for the twelve months to December 31,
1920, were only 2,800 tuns, which is short of the previous
year's export by 1,700 tuns. The consuming markets ceased
to bs active about October, and since then prices have been
declining.
Production in Other Lines
There was an over-production of lumber during the past
year, and this winter's operations will be curtailed. Pulp and
paper mills have been working to capacity, the output find-
ing a prolitable market. Timber limits are bringing good
prices.
The output of iron ore from the Bell Island mines was
about normal. There are prospects of coal being mined in
piying quantities at two points in the Island and copper
mines may also be operated in the near future.
Manufacturers of clothing, oil clothes, boots and shoes,
cordage, etc., are heavily overstocked and are operating on a
reduced scale. Both wholesale and retail trade have been
dull for several months; cash sales are light and requests
for renewals are being made.
The trade of the Dominion for the fiscal year ended the
30th June, 1920, shows a further advance over all previous
records of $5,317,026, as will be seen by the following figures:
Imports
Exports
1918.
$26,892,946
30,153,517
1919. 1920.
$33,297,164 $40,533,388
36,784,517 34,865,438
$57,046,463 $70,081,681 $75,398,826
There are no figures available from the 30th June to the
end of December, 1920, but it is thought the imports do not
compare favorably with the corresponding period of the
previous year and there is not the least doubt that the value
of the efforts has seriously declined.
Moose Jaw Board of Trade
Moose Jaw, Sask., and district enjoyed a prosperous
year in 1920, according to the annual report of W. T. Thorn,
president of the Board of Trade. There was a bumper crop,
and even though operating costs were high the local situa-
tion was satisfactory. There was good development in in-
dustry chiefly in manufacturing based on local raw materials.
Wholesale and retail business was active and building was
almost three times as much as in 1919, and nearly equal the
combined figures of the preceding four years.
With reference to the outlook, Mr. Thorn admits that
the prospects for the immediate future are not bright, but
expects an exceptionally good situation for Moose Jaw and
district in the latter part of 1921, depending of course on the
crop.
Three new industries established at Woodstock, Ont.,
during 1920, and six others already operating in the munici-
pality extended their opei-ations, according to a statement
made in the annual address of E. A. Rea, president, who has
been again elected chief of the organization. The board is
also negotiating with nine other industries, and it is hoped
that they will locate in the city in the near future.
Cornwall Growing Industrially
President O'Callaghan, who has been re-elected president
of the Cornwall, Ont., board of trade, in reviewing events
of the past in his annual statement, presented industrial
statistics of the town from 1900 to 1918, showing that in the
former year there were 32 establishments, with 1,619 em-
ployees, in which $500,849 was paid in wages and salaries,
while in the latter there were 65 establishments, 1,877 em-
ployees, and $1,132,751 paid in wages and salaries. This
was the last year for which the figures were available. In
addition he mentioned the fact that there was sold on the
Cornwall cheese board during 1920 some 55,000 boxes of
cheese, at a total value of $1,250,000.
At the annual meeting of the Timmins, Ont., board of
trade last week, D. Ostrosser was re-elected president for ,
1921. In reviewing the past year Mr. Ostrosser said: "Tim-
mins is out of the baby class and will be a mighty good place
to live in this year." Freight receipts for the past year was
only exceeded by one town in Ontario of equal size and
amounted to the sum of $725,000. Payrolls totalled $4,500,000,
assessment had reached a high mark of $2,225,000 and the
revenue from taxes, royalties, and rates came to $170,000.
After reviewing to some length general business condi-
tions and the work of the Edmonton board of trade during
1920, at the annual meeting last week, retiring president W.
J. Thompson, stated : "It has been the policy of this board
February 11. 1921 THE MONETARY TIMES
Subscription lists will close on or before February Z I. 1921
NEW ISSUE MONTREAL. February) 8. 192!
$3,000,000
The Spanish River Pulp and Paper Mi
LIMITED
8% General Mortgage Bonds Series "A"
Dated March 1st. 1921. Maturing March 1st. 1941. Principal and semi-annual interest payable at The Royal Bank of Canada. Montreal and
Toronto. Interest payable May 1st and November 1st. Coupon Bonds of SLOW and $500 Denominations with privilege of registration as to prin-
cipal only. Trustee — The Montreal Trust Company. Montreal.
CAPITALIZATION
.\uthorlzed Outstanding
Common Shares (Paying 7%) — «10.000.000 $8,993,500
7% Cumulative Participating Preferred Shares . _ - - 10,000.000 8.o<I.493
8% First Mortg.ige Bonds and «<-, Serlil Notes, maturing 1921-IMl (Including Bonds of Lake Superior
Paper Company. Limltcdl _ _ - ^'"!!'' '^'Sl,},^
8% (Jeneral Mortgagr Honds. Series "A" (this issue)....- - •— 20,000,000 3,000,000
At current market prices on Montreal Stock Exchange the Preferred and Common shares have a market value of approximately $15,000,000,
ranking Junior to these Bonds. Approximately $500,000 of the securities senior to this issue mature each year 1921 to 1931 inclusive. These annual
reductions together with annual Sinking Fund of Zi per annum on General Mortgage Bonds rapidly increase the equity behind this issue.
ComltUtr ;.,..»/„. (lii, cpi.s oi uliirh uili be maiU.l ui, r,,;n.,«(, nntains a Idler from the /V™..!. i,/ of the Comparil, from wh'irh lie sp/mmnn:.v
a8 fotlou'f :
The Spanish River Pulp &. Paper Mills. Limited, was incorporated in 1910 to acjuire the properties and assets of the Spanish River Pulp 4
Paper Company. Limited, and the Ontario Pulp &. Paper Company, Limited. In 1913 it acquired all the capital stock of the Lake Superior Paper
Company. Limited. The Company is the largest manufacturer of newsprint in Canada.
Bonds will be secured by direct mortgage and charge on all the fixed assets and properties of the Company and on all Bonds. Debentures and
Shares now owned or hereafter acquired by it and by floating charge on all other assets of the Company, subject only to $10,655,113 par value of
Bonds and Serial Notes of the Company and Bonds of Lake Superior Paper Company. Limited, the mortgages securing which are to be closed at
the amounts now outstanding.
Annual Cumulative Sinking Fund will commence in 1924 — Sufficient to retire half of this issue before maturity.
Timber Areas — 11.520,000 acres, containing sufficient pulpwood for many years' operation at present capacity.
Water Powers — 60.000 horse power, of which 50.000 horse power is developed and in operation; of the balance. 7.500 horse power will be In
operation by August. 1921.
The three mills operated by the Company produce the following tonnage of newsprint paper annually:
Sault Ste. Marie Mill '^-^M
Espanola Mill '« "«
Sturgeon Falls Mill 23.100
Additional. Sturgeon Falls, in operation June. 1921 -..- 16.900
Total 203.100 tons
Plant and Property Valuation — $30,000,000 against $13,655,113 of Bonds outstanding, including this issue.
Net Liquid Assets (Working Capital) after deducting all Current Liabilities and including the proceeds of this issue, will be in excess of
$9,000,000.
Average annual Net Earnings after depreciation available for interest charges on these Bonds for the five years ended June 30th, 1920, were
$1,229,472 — over tive times interest charges on General Mortgage Bonds now to be issued.
Net earnings after depreciation for year ended June 30th, 1920, available for interest charges on General Mortgage Bonds amounted to $2,552,-
069 — over ten times the amount required to pay General Mortgage Bond interest.
Net Earnings (or six months ended December 31st. 1920. after depreciation and prior interest charges, were in excess of $2,500,000 — at the rate
of twenty times annual interest on this issue.
Ill- ufjer the unsold balance of llns issue if, as and when ismcd and received ty us at the price of :
99 and accrued Interest, to yield 8.10%
ROYAL SECURITIES CORPORATION
LIMITED
Head Office: 164 St. James Street, Montreal
TORONTO HALIFAX ST. JOHN. N.B. WINNIPEG
58 King Street West Royal Bank Building 54 Prince William St. Electric Ry. Chambers
VANCOUVER NEW YORK LONDON ENG.
Pacific Building 165 Broadway 7 Gracechurch St.. E.C. 3. 4(U
THE MONETARY TIMES
Volume 66.
to concentrate on the development of our agricultural and
dairying industries and immense possibilities are without
doubt obtainable in this direction. Some effort should be
made, however, by the city to provide funds for an advertis-
ing campaign to "make Edmonton known to the world," and
in this we should co-opei-ate to the fullest extent. During the
past five years the total amount spent by the city in this
way was less than $1,000, and this has principally been in
financial publications. It is true that these years were not
ones when much money could have been expended to good
advantage, but we are now on the eve of a development
period, when advertising our city and district can be done to
splendid advantage."
S. B. Woods is the new president for 1921, while Frank
Pike is first vice-president, P. W. Abbott, second vice-presi-
dent and W. Ross Alger, third vice-president.
RELATIONS WITH OTHER BANKS
DOMINION GOVERNMENT SAVINGS INSTITUTIONS
THE Post Oflfice Savings Bank and the Dominion Government
Savings Bank, two institutions operated by the govern-
ment, sometimes called the "poor man's" savings banks, inas-
much as they operate for the benefit of the poorer class of
people and those who are ignorant and suspicious of the safety
of the chartered banks, did not enjoy a very favorable year.
As \vi\\ be seen from the figures given below, withdrawals
tended to greatly exceed the deposits. It will he noticed that
the deposits were affected by the Victory Loan in the fall of
1919, but apart from that the tendency was to reduce the
amount available for use by the government.
Post Office Savings Banks
1919 — Deposits Withdrawals
October $858,054 $2,431,647
November 884,322 2,985,925
December 956,771 2,090,357
1920 —
January $597,100 $1,409,435
February 519,822 1,215,902
March 682,979 1,212,686
April 537,316 1,214,707
May 575,186 1,064,902
June 561,829 1,034,504
July 614,814 858,221
September 580,047 761,619
Oetolier 591,725 775,766
November >621,354 854,377
Dominion Government Savings Banks
1919 — Deposits Withdrawals
November $192,829 $859,307
December 190,490 203,450
1920 —
January $158,650 $144,112
February 150,329 122,244
March 196,855 180,606
April 214,559 267,157
May 192,518 218,459
June 213,331 216,279
July 182,622 202,270
August 145,393 198,885
September 137,521 183,253
October 155,350 180,441
November 181,132 181,142
December 199,186 547,746
The balance at the credit of depositors in the post-office
savings banks at October 31, 1919, was $35,810,419, but by
November, 1920, this figure was reduced to $29,156,896 at
Novembei-, 1920. In the case of the Dominion government
savings banks, the balance was reduced from $11,074,418 at
the end of October, 1919, to $10,188,315 at the end of De-
cember, 1920.
In the course of their business, which is becoming world-
wide, Canadian banks find it necessary to keep adequate funds
on deposit with banks abroad. Other banks also find it con-
venient to keep an account here. Because New York is the
favorite call loan market, the lai-gest sums are kept on de-
posit there. Substantial sums are also due from the United
Kingdom. The indebtedness of Canadian banks to banks in
Canada is not large, the branch system making that unneces-
sary.
Exchange has played an important part during the past
year, particularly in connection with the flow of money be-
tween Canada and the United Kingdom and the United States.
Banks have undoubtedly found it necessary to withhold or
remit funds, which would othei-wise have followed the usual
course, in order to avoid loss, and in other cases to make
profit.
The following table illustrates the relations of Canadian
banks with other like institutions, and reflects to some extent
the expansion of our business abroad: —
Due from Due from Due from
banks banks banks
1919 — in Canada in U. K. elsewhere
January $6,960,719 $11,821,623 $41,501,475
Febroary 8,409,585 9,250,181 42,595,838
March 7,287,982 10,763,482 44,583,970
April 9,515,060 7,445,880 41,230,016
May 6,178,928 9,652,684 47,474,79-?
June 4,280,792 14,557,257 48,484,051
July 3,858.427 15,531,796 84,255,121
August 3,906,961: 9,924,266 46,286,574
September 3,693,555 11,588,642 48,056,076
October 4,305,687 12,452,503 46,420,058
November 5,051,034 16,969,591 59,174,502
December 6,431,925 18,355,211 60,793,846
1920 —
January $4,864,829 $30,867,536 $47,896,551
February 5,249,137 16,241,197 49,754,123
March 5,334,858 18,807,577 58,526,306
April - 5,172,264 18,494,579 54,250,752
May 10,329,188 6,254,219 30,319,410
June 5,022,834 15,044,016 69,520,893
July 6,404,563 15,613,645 63,162,932
August 5,313,598 16,552,385 66,537,548
September 6,330,466 11,922,274 61,553,748
October 5,882,097 18,131,746 64,315,169
November 5,665,820 14,033,092 69,204,244
December 7,146,159 - 23,624,878 82,327,209
Due to Due to Due to
banks banks banks
1919 — in Canada in U.K. elsewhere
January $10,885,649 $4,615,499 $26,079,366
February 11,507,772 3,413,395 23,953,348
March 11,431,201 4,534,803 29,217,468
April 13,910,573 7,377,784 29,328,257
May 10,329,188 6,254,219 30,319,410
June 10,556,638 7,958,573 32,208,785
July 8,773,045 6,983,194 32,955,659
August 7,860,268 7,439,436 29,407,035
September 8,638,270 6,482,034 30,951,715
October 8,516,415 4,732,347 32,284,134
November 11,819,754 5,671.754 29,202,726
December 13,469,159 5,487,097 33,913,339
1920 —
January $8,855,237 $7,923,292 $37,609,232
February 10,579,357 7,766,201 40,777,862
March 9,730,536 8,015,129 38,766,460
April - 11,301,198 9,019,645 38,019,645
May — 11,691,483 9,534,525 37,076,433
June 12,255,058 6,792,662 37,168,379
July 12,199,695 6,837,914 38,104,212
August _- 9,554,370 6,410,429 42,631,004
September 14,850,634 6,656,574 57,010,817
October 15,377,031 6,317,327 52,961,133
November 12,006,703 5,475,760 35,220,324
Decpmber 13,570,082 3,900,624 29,218,339
February 11, 1921
THE MONETARY TIMES
32a
|iiiiiniiiiiiniiiiiiiiniiiiiiiiiiiniiiiiiiiiw
I Canadian Guaranty Trust I
I Company |
The Eleventh Aniuiiil General Sleetinc iif the Shareholders of the Canadian Guaranty Trust Company was held In the office of the Company,
I03I Rosser Avenue, Brandon, at 2,30 o'clock, p.m.. February the 2nd, 1921. The following reports were presented;
TO THE SHAREHOLDERS,
CANADIAN GUARANTY TRUST COIMPANY:
Vour Directors beg to submit the Eleventh Annual Report of the Company for the year ending 3Ist December, 1920.
The earnings of tlie Company for the year have been the greatest In lt3 history, and we have been able to add
$5,000.00 to our Reserve Fund, place $2,000.00 in a Contingent Account, and carry forward $5,753.19 in undivided profits,
making a total Reserve Account of $47,753.19, or approximately 18'c on tlie Paid-Up Capital Stock. WHiiie our securi-
ties and other assets are carefully valued, we have thoi^ht it advisable to provide a Contingent Fund until financial
conditions become more settled.
During the past year a sub-committee of the Board has carefully examined all our various assets, securities, etc.,
and reported all in good order. The books and accounts cf the Company have been audited regularly by ftie Sharehold-
ers' Auditor, and his report for the year 1920 is attached hereto.
On behalf of the Board of Directors,
Brandon. .Manitoba. .Tanuary 6th, 1921. A. C. KRASER. President.
Statement for 12 months ending, December 31st, 1920
ASSETS
Capital Account —
Mortgages on Heal Estate $ S72.08
Real Estate held under Power of Sale -... 5,339.45
iMunlcipal Debentures and Government Bonds 76,153.77
Bills llecelvablc 764.75
Accounts Receivable 1,536.78
Interest and Commission Accrued _ _. 11,899.52
Office Furniture, Equipment and Safely De-
posit Boxes (less lOT'c written off annually) 3,285.33
Advances to Estates and Agencies secured by
Estate and Agency Assets 302,162.61
Cash on Hand and In Banks 39,192.27
$ 440.906.56
Trust, Guarantee and Agency Accounts —
Mortgages on Real Estate _ __ $ 294,588.13
Stocks. Bonds and Debentures 45,571.72
$ 3IO,lo9f.'
Trusts, Estates and Agencies —
Unrealized Original Assets, Including Real
Estjite, Mortgages, Stocks, etc., at Inven-
tory value $2,115,889.18
$2.896,955.5!>
LIABILITIES
Capital Account —
{Capital Subscribed $596,050.00)
Paid tliereon _. $ 263,637.46
Balances at Credit Estates and Agencies 111,240.81
Reserve Fund .- 40,000.00
Contingent Fund 2,000.00
Reserve for Taxes 2,750.00
Dividend No. 8 15,525.10
Balance Profit and l.o.s.^ 5,753.19
$
Trust, Guarantee and Agency Accounts —
Fur Investment aud Distribution $
Trusts, Estates and Agencies —
Inventory Value of Unrealized Original Assets
iif Estates. Agencies, etc.. under Admlnls-
PROFIT AND LOSS
To Dividend No. 8
" Transferred to Reserve Fund ...
" Transferred to Contingent Fund
" Balance carried forward
;io.J25.1li
5,000.00
2,000.00
5,753.19
Cr.
By Balance brouglit forward from 1919 $ 5,610.76
" Net Profits for the year, after deducting Cost of Man-
agement, Auditor's Fees, Rent, Taxes, etc., and amount
written oH Furniture and Deposit Boxes 22,667.53
$28,278.29
AUDITOR'S CERTIFICATE
I hereby certify that I have made a monthly audit of the books and accounts of the Company, and that the above Balance Sheet and Profit
and Loss Statement are true, correct, and full Statements of the condition of the affairs of the Company as on December 31st, 1920, as disclosed
by the said books of accounts.
The Cash and Bank Balances have been certified, and the Mortgiges found duly certified as valid by the Company's Solicitor. The Trusts
and Estates are in good order and are being carefully administered.
Brandon, Man.. .lanuary 6th, 1921. J. B. BEVERIDGE, Auditor.
The Scrutineers reported the following re-elected as directors for the ensuing year.
A C. Frnser, Col. A. 1,. Young. .lohn R. Little, Wnillam Ferguson, H L. Adolph, E. 0. Chappell, J
Munro, Hon. W. M. Martin. F. N. Darke, Alex. A. Cameron, D. A. Rcesor, Alex. Rose, \V. C. McCulloch.
At a meeting of the Directors held subsequent to tlie Shareholders' meeting, A. C. Eraser was appointed President; A. L. Ymnig, Vicc-I'i
dent, and John R. Little, Managing-Director.
Maxwell, John A. McDonald, G. S.
411
IlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllUiililillllllllillllillUllllilllllll^^^^
THE MONETARY TIxMES
Volume 66.
The Ontario Loan and Debenture
Company
The Fiftieth Annual General .Meeting- of the Shareholders
of this Company was held on Wednesday afternon, 9th instant,
at the Company's Offices, London, Ontario.
The chair having been taken by the President, Mr. John
McClary, the Manager, Mr. A. M. Smart, who acted as Secre-
tary, read tlie notice calling the meeting and the minutes of
the last Annual Meeting, which, upon motion, were confirmed.
The Annual Report was then presented, as follows: —
London, Canada, 25th January, 1921.
To the Shareholders: —
It affords the Directors special pleasure to present their
Annual Report for the year 1920 — the Company having now
completed fifty years of service in its field of activity.
In addition to paying the Shareholders in each of those
years Dividends averaging throughout the whole period over
7^2% per annum on their Stock, a strong Reserve Fund equal
to 128'2',( of its paid-up Capital has been built up, thus placing
you Company in this respect second to none.
Investments in Bonds and Debentures have increased dur-
ing the past year, but latterly good Mortgage Loans are of-
fered in larger volume at fair rates, and attention is again
turning to this class of security. Payments both of interest
and principal have been well met and the outlook is favorable
The earnings have been in excess of those of the previous
year, and a Bonus equal to 1% in addition to the usual Divi-
dend was distributed, in all 10% for the year.
After payment of Provincial and Municipal Taxes, Inter-
est, Expenses and Charges, and making provision for possible
losses and contingencies, the
Net earnings for the year 1920 are $279,893.74
Surplus realized from sale of old office building- 23,000.00
Balance brought forward from previous year 32,623.71
From this Total available $335,517.45
Dividends (Quarterly) at the rate of 9%
per annum have been paid with bonus
1% $175,000.00
Transferred to the Reserve Fund 100,000.00
$275,000.00
Balance $ 60,517.45
Dominion Government Income War Tax 28,864.08
Balance carried forward .- $ 31,653.37
The transactions and books of the Company have been
subject to exhaustive continuous audit throughout the year,
and the Auditors' Certificate is attached to the financial state-
ment which is presented hei'ewith.
Your Directors desire to acknowledge the care and atten-
tion devoted to the Company's interests by your valued repre-
sentatives in Scotland, and also record their entire satisfac-
tion with the manner in which the Officials and Staff have
performed their duties.
All of which is respectfully submitted.
JOHN McCLARY, President.
To the Shareholders of The Ontario Loan and Debenture
Company:
We hereb)- certify that we have audited the books and
accounts of The Ontario Loan and Debenture Company contin-
uously throughout the year ended December 31st, 1920, and
find them correct and the above statements in accordance there-
with. We have verified the Cash and Bank Balances, and have
examined the Company's securities and find them in order. All
our requireinents as Auditors have been complied with, and, in
our independent opinion and according to the information and
explanations given us, the above statements are properly drawn
up and set forth fairly and truly the state of the Company's
affairs.
All transactions that Jjave come within our notice have,
we believe, been within the powers of the Company.
F. G. JEWELL, P.C.A.J . ,.,
J. F. KERN 3 Auditors.
London, Ont., 25th January, 1921.
The President, mo\'ing the adoption of the Report, said in
part: — ■
With the year 1920 your Company has now passed its fif-
tieth anniversary, and I am sure the Shareholders will be as
gratified as are the Directors at the success that has attended
our efforts. Throughout all this time the objects for which it
was formed, namely the promotion of thrift and the develop-
ment of the community, have been kept constantly in view,
rather than the acquisition of excessive profits. Yet in all of
these years the Shareholders have received every year a fair
return in Dividends on their Shares and your Capital of $1,750,-
000 has been considerably more than doubled, as shown by the
present amount of the Reserve Fund which now stands at
$2,250,000. These facts speak louder than any poor words of
mine for the wisdom with which your Company has been con-
ducted.
During the period of the war and the time since peace was
declared the nature of our Assets has altered materially. The
needs of the Empire have been very great and your Directors
conceived it to be their duty to render assistance in supplying
funds by investing considerable sums in the Bonds of the
United Kingdom, of the Dominion and the Provinces, even at
rates much below the average yield of our other advances.
Investments in these Bonds together with Securities fully
guaranteed by the Dominion and the Provinces and those of
Canadian Municipalities now amount to one-third of the Com-
pany's total invested assets, whereas in 1914 mortgages on
Real Estate made up nearly 95% of the then total. Now that
the Dominion Government issues have an open market and
the embargo against the return from abroad of Canadian
Securities has been raised and the import of all others is abso-
Financial Statement
3Ist December, 1920
ASSETS
Office Premises (freehold) _ $
Real Estate lield for sale .'.
Mortgages — Principal $4,501,349.02, Interest $117,852.90. 4
Loans on Company's own Stock „ „ „..„
Loans on other Stocks and Bonds
Securities of United Kingdom, Dominion of Canada and Provinces
of Canada „ 1
Securities of Canadian Municipalities, School Districts and Rural
Telephone Debentures „ , 1
Securities guaranteed by Dominion of Canada and Piovlnces of
Canada „
Stocks {fully paid)
Cash in Chartered Banks In Great Biit<un
Cash in Chartered Banks in Canada
40,000.00
70,342.07
619,201.92
294.56
56,831.34
088,219.33
643,800.50
4.200.OO
4,648.09
181,180.43
$1,086,211.;
.. 1,518.097.;
LIABILITIES
To the Public —
Debentures. Sterling, including accrued interest .
Debentures, Currency, including accrued interes':
$:
llepusits
To the Shareholders — $!
Capital Stock Subscribed, 52.550.000.00
Capital, fully paid $1,550,000.00
Capital, partly paid 200,000.00
$1,750,000.00
Reserve Fund 2.250,000.00
Dividend payable 3rd January, 1921 43,750.00
Profit and Loss Account. Balance carried forward 31.653.37
A. M. SMART. Ma
February 11, 1921
THE MONETARY TIMES
32c
lutely free from interference, their marketable value is estab-
lished on the logical (if perhaps old-fashioned) foundation of
supply and demand.
The coming year seems likely to develop a greater demand
for advances upon Real Estate Mortgages at possibly better
rates. Rates for this class of service have, I think, shown less
increase than any commodity either material or labour, being
but little higher than they were in 1914.
While I consider our Company should endeavor to do its
share toward overtaking the i-equirements of this department
of the reconstruction activities, it will be wise to bear in mind
the present inflated cost of building. Cost is not always a true
gauge of value. Especially at present it should not be taken
as such in making these mortgage loans. I believe the mem-
bers of the Board fully realize this and if re-elected the policy
should and will be to face the future with confidence and to
proceed with caution.
The Vice-President, Mr. A. M. Smart, in seconding the
adoption of the Report, said:—
In seconding the resoltuion which Mr. McClary has just
proposed I would like to say in connection with the new form in
which the balance sheet is presented that it is in the form re-
quired by the Registrar of Loan Corporations from all similar
Companies. This uniformity is a step in the right direction as
making it much easier of comparison of the position of one
Company with another. With others we are of opinion it
might be further improved were the items on the assets side
differently grouped and presented in sequence of cash and
quickly available securities first, followed by those not so read-
ily convertible into cash, then those of a more fixed and perma-
nent nature. However, we have no option in this.
Some of the Loan Companies, fearing a shortage of supply
of money for mortgages, are urging that the limit to which
money may be received on Deposit be raised, by amending the
Loan and Trust Corporation Act to the end that funds avail-
able may be thus augmented. The present limit is fairly rea-
sonable and by it provision is made that in effect moneys
which are repayable by the Companies on demand or short
notice will not be tied up in long-term mortgages. The so-
called safeguard that is suggested is misleading, fallacious
and would be, in my opinion, quite ineffective and positively
detrimental to the Companies and to the public. The Board of
Directors are, for these and other reasons, not in sympathy
with the proposal and trust that wiser counsels may prevail.
Our Securities, Bonds, Debentures, etc., which the Presi-
dent has mentioned as now forming 33% of our invested Assets,
amount with cash on hand at the end of the year, to $2,930,000
and (quite apart from our Mortgage Assets) are equal to about
80% of our total liabilities to the public. The Bonds of the
Dominion of Canada have now a definite market value, being
quoted and dealt in daily on the Exchanges. They and ail
other bonds that are so quoted, have been taken into the bal-
ance sheet at not exceeding their market values as on the 31st
December last. Against all other Bonds and Debentures,
amounts have been reserved to bring them all well within
the values authorized by the Government Department in
charge of the matter.
Like reservations are also provided as heretofore against
Real Estate held for sale, in which item is included all proper-
ties in the possession of the Company whether by foreclosure,
power of sale or otherwise; with the exception of office prem-
ises. Experience in the past has repeatedly proved our fontier
appropriations more than ample.
The office premises item is again reduced to $40,000, which
is barely 5T/o of the assessed value for taxation. This is
brought about through the sale of the Agricultural Savings
and Loan Company building not I'equired by your Company.
The surplus derived from this sale is shown in a separate item
apart from the profits, and rightly so, as it is in no sense pai-t
of the earnings of the Company. If there is any further infor-
mation desired by any Shareholder, I shall be glad to furnish it.
The Report was then adopted unanimously.
The Scrutineers were then appointed and the election of
Directors proceeded with, Messrs. John McClary, A. M. Smart,
Lieut. -Col. William M. Gartshore, John M. Dillon, M. Masuret,
C. R. Somerville and J. G. Richter being re-elected for the
ensuing year.
It was moved by Mr. A. B. Greer, seconded by Prof. Bow-
man, that Messrs. Frank G. Jewell, C.A., and John F. Kern
be and are hereby re-elected .■Vuditois of the Company. Car-
ried.
The meeting then adjourned and at a meeting of the
Board of Directors held subsequently Mr. John McClary was
re-elected President and Mr. A. M. Smart, Vice-President of
the Company. 412
The Security Life Insurance Company of Canada
SYNOPSIS OF ANNUAL REPORT FOR 1920
During the year the applications for New Insurance, Increases and Revivals amounted to $2,204,900. The
amount actually accepted and issued was $2,023,100.
The Gross Insurance in force at the end of the year was $4,513,132, an increase for the year of $1,500,695,
being over 74' < of the New Business issued.
The Gross Cash Premium Income for the year was $112,648.40, an increase over the previous year of $29,-
098.01, and an increase over the year 1918 of "$66,101.04.
The Death Claims during the year were (net) $13,492.01 as against $15,592 in 1919 and $29,550 in 1918.
From the Cash Receipts during the year the Company after payment of Claims, Re-insurance Premiums and
Expenses was able to carry the substantial sum of $90,809.89 to Investment Account.
The Balance Sheet as at December 31st, 1920, showed .Assets of $299,405.95 with Liabilities, including Re-
serve Value of all Policies in force with provision for additional Guarantees of $225,011.42, leaving surplus
Assets over Liabilities (excluding Capital) of $74,394.53, an increase for the year of $36,216.87.
At the Annual Meeting on February 8th, much satisfaction was expressed over the progress of the Com-
pany and the policy of the Directors to substantially increase the volume of business was unanimously approved
by the Shareholders.
Intending Insurers should enquire for rates and particulars of the "All Guaranteed Policies" being issued
bv this Company. During the year 1920 not a single letter or message was received at the Head ()ffice in-
dicating either misunderstanding of, or dissatisfaction with, the policy held in the Company.
HEAD OFFICE: SECURITY BUILDING, 37 YONGE STREET, TORONTO
j. o. McCarthy.
Vice-President and General Manager
BRIG.-GEN. SIR HENRY M. PELLATT. C.V.O..
President
414
THE MONETARY TIMES
Volume (?(i.
CROWN LIFE INSURANCE COMPANY
Applications for $7,153,834 of new business were re-
ceived by the Crown Life Insurance Company in 1920. This
is about"$l,000,000 more than the total in 1919. The amount
of policies actually issued was $6,832,325, the net gain in
insurance in force being $4,407,487, and the amount now is
$25,745,826. The cash premium income was $896,302, and
the net premium income $848,576. The average premium was
$38.10 per $1,000 of insurance.
Assets of the company have increased from $2,871,714
at the end of 1919 to $3,389,960 at the end of 1920. The
average rate of interest earned in 1920 was 6 per cent., and
profits were also realized through appreciation in market
Value of securities. Total cash receipts were $1,030,614.
Death claims paid netted $126,455, the mortality experience
being 49 per cent, of the table used, or 44 per cent, in the
participating section and 62 per cent, in the non-participating
section. Policyholders' reserve has been increased from $2,-
650,323 to $3,159,136, and in addition $215,816 was paid to
policyholders and $47,275 added to their surplus. It was
announced that dividends to policyholders would continue to
be paid on the same scale.
CANADIAN ELECTRIC RAILWAY ASSOCIATION
A convention of the Canadian Electric Railway Associa-
tion was held in Ottawa, January 31 and February 1. G.
Gordon Gale, vice-president of the Hull Electric Railway
Company, was elected president, and Major F. D. Burpee,
manager of the Ottawa Electric Railway Company, was
chosen first vice-president Thomas Ahearn, also of Ottawa,
was elected honorai-y president, and the other officers chosen
were: Honorary vice-president, George Kidd, Vancouver.
Executive— R. M. Reade, Quebec; H. H. Cousens, Toronto;
C. C. Curtis, Cape Breton; C. L. Wilson, Toronto; E. P. Cole-
man, Hamilton; A. W. McClimont, Winnipeg; W. S. Hart,
Three Rivers; and Col. G. C. Boyce, Toronto; treasurer, A.
Gaboury; auditor, H. E. Weyman Lewis.
R. Mayne Reade, superintendent of the Quebec Railway,
Light, Heat and Power Co., spoke on "Accident Prevention,"
referring more especially to street railways. The safety
movement has progressed rapidly, he said, but it should go
still further. "Ten years ago," said Mr. Reade, "the steam
railroads headed the list in the number of fatal accidents,
followed by electric railways, industrial establishments and
others. To-day it is known that autom.obile accidents not
only are at the top of the list in the United States and Can-
ada, but the total fatal ones credited to them is more than
the combined total of all other classes of accidents on the
calendar. This fact most assuredly indicates that there is
something radically wrong in the administration of our
ti-affic laws throughout the country." Mr. Reade suggested
a drivers' license law, providing for the mental and physical
examination of applicants, as the remedy.
J. E. Hutcheson, general manager of the Montreal Tram-
ways Co., discussed the "Practical Operation of a Service at
Cost Contract." This plan was adopted in Montreal in 1918.
Control is exercised by the Montreal Tramways Commission,
from which there is an appeal to the Quebec Public Service
Commission. After meeting operating expenses and taxes,
maintenance and renewals return upon capital value, city
rentals, and making an appropriation to contingent reserve,
the surplus is divided on the basis of 20 per cent, to the com-
pany, 50 per cent, to a tolls reduction fund and 30 per cent,
to the city.
"After more than two years' trial," said Mr. Hutcheson,
"it is my belief that the plan now in operation in the city of
Montreal is working out to the advantage of the citizens.
It is true that the rates of fare have been increased, but had
they not, the company would have been obliged to greatly
curtail the service and defer maintenance in order to make
the revenue pay operating expenses."
ROYAL LOAN AND SAVINGS COMPANY
The forty-fifth annual report of the Royal Loan and
Savings Company, Brantford, Ont., shows mortgage loans of
$1,638,236, as compared with $1,631,298 in the previous year.
Profits were not quite so high at $70,806, but the usual divi-
dend of 9 per cent, was maintained and a balance of $8,223
carried forward.
The liabilities side of the balance sheet shows a good
increase in deposits from $578,556 to $745,047. At the same
time debentures were reduced from $910,836 to $772,029.
Total assets of the institution now amount to $2,617,476,
compared with $2,568,555 in 1919. The reserve fund has been
increased $20,000 to $470,000.
BRITISH COLUMBIA TELEPHONE SYSTEM GROWING
The growth of the British Columbia Telephone Company
in 1920 was greater than in any other year, topping that of
1919 by 79 stations, with a net gain of 8,549. The total
number of telephone stations of the company now is 67,672.
Expansion was noted in 41 of the 44 exchanges, excep-
tions being Sandon, New Denver and Greenwood, small
mining towns in the Kootenay. Even in these, however, the
aggregate net loss was only twelve, shoving that these places
are about holding their owti, despite adverse conditions. Not
only has there been growth in the large cities, but throughout
the territory, on Vancouver Island, the lower mainland, Kam-
loops and the Kootenay the increase during the year was
steady, and in the coast cities marked.
SUN LIFE ASSURANCE COMPANY
Assets totalling $114,839,444 are shown in the annual
statement of the Sun Life Assurance Company for 1920; at
the end of 1919 they were $105,711,468. The reserves on
policies and annuities are $102,134,336, an increase of $8,500,-
000. The cash surplus to policyholders is $8,864,667, com-
pared with $8,537,440 at the end of 1919. This is made up
of capital paid up, $500,000, and net surplus, $8,364,667.
Holdings of bonds increased from $60,766,106 to $67,757,963,
mortgages from $6,850,761 to $7,634,427, preferred and guar-
anteed stocks from $11,505,667 to $11,635,387, while holdings
of other stocks decreased from $4,389,920 to $3,994,405.
These are all entered at their market value. Loans on policies
increased by $1,100,000, and outstanding and deferred pre-
miums by $350,000.
The income for the year was $28,751,578, against $25,-
704,201 in 1919. Receipts on account of annuities decreased
from $2,103,318 to $1,567,943, while life premiums went up
fi'om $17,933,794 to $20,950,348. The remainder of the in-
crease in income is due to the fact that net income from
interest and rents was $6,073,714, compared with $5,489,205
in 1920. Disbursements totalled $18,977,865, leaving an
excess of $9,773,713; last year the figures were $17,995,899
and $7,708,301, respectively. Lower payments to policy-
holders, chiefly on account of death claims and matured en-
dowments, made this increased balance possible. Expenses
were somewhat higher than in 1919, while a "net adjustment
in ledger assets, due to change in value of foreign cur-
rencies" of $847,539, compared with a similar item of $43,107
last year, was also added to disbursements.
At the annual meeting on Tuesday the shareholders
voted on an increase in the subscribed stock from $1,000,000
to $2,000,000. The amount already paid on the subscribed
stock was $500,000, and, as the pa>^nent on the additional
million is to be $350,000, this will increase the paid-up capital
to $850,000. Just before the close of 1920 $350,000 was dis-
tributed to the shareholders from the profits of the non-
participating and annuity branches, so that the increase in
capital is virtually a distribution of stock.
February 11, 1921 THEMONETARYTIMES 33
aiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiifflniiiiiiiiiiM
THE
Trusts and Guarantee Company
LIMITED
TWENTY-FOURTH ANNUAL STATEMENT
BALANCE SHEET, DECEMBER 31st, 1920
ASSETS.
Capital Account —
Office Premises and Safety
Deposit Vaults, Tor-
onto, Calgary and
Brantford
The Trusts Buildings,
Limited, Stock* $ 239,398.27
Office Furniture 25,000.00
Real Estate— held for sale 137,563.68
Loans on Stocks and Bonds. 23,012.92
Bonds and Debentures .... 646,739.15
Stocks
Cash in Chartered Banks. .
Cash on Hand
269,785.35
68,743.60
19,066.27
Other .A^ssets 306,495.88
$ 1,735.805.12
Guaranteed Tru.st .\ccount —
Mortgages: —
Principal .$3,144,030.37
Interest . . 1.58,041.64
$3,302,071.91
Loans on Stocks, Bonds, etc. 169,744.37
United Kingdom, Dominion
of Canada, Provinces of
Canada and Government
of Newfoundland Bonds 517,874.88
Canadian Municipalities,
School District and
Rural Telephone De-
bentures 642,585.37
Other Bonds and Deben-
tures .586,606.61
Cash in Chartered Banks.. 178,7.50.46
Other Assets — amount due
from Dominion Govern-
ment 25,022.28
Kstates, Trusts and .\gency Account-
Funds and Investments....
$ 5,422,655.88
$16,383,751.38
$23,542,212.38
LIABILITIES.
Capital Account —
Capital Stock Subscribed. . .$2,000,000.00
Capital fully paid 1,147,500.00
Capital partly paid 261,609.67
Reserve re balance Dominion
Income War Tax, etc..
Dividends declared and un-
paid, due January 3rd,
1921
Profit and Loss
$ 1,409,109.67
24,855.23
42,258.28
259,581.94
$ 1,735,805.12
Guaranteed Trust .\ccount —
Trust Funds for Invest-
ment $4,501,035.97
Trust Deposits 921,619.91
$ 5,422,655.88 1
Estates. Trusts and .\gency .Vccount —
Estates, Trusts and Agency
$16,383,751.38
$23,542,212.38
*The office premises are vested in the Trusts Buildings, Limited, all the stock of wliich is held by the Trust
Company and were appraised in 1920 by the Canadian .A.ppraisal Company, Limited, at $939,398.27. Certain of the
lands are subject to a first mortgage of $100,000.00, and the holding Company has oifafetanding $350,000.00 first
and $250,000.00 second mortgage bonds and shares of a par value of $250,000.00.
.JAMES J. WARREN, E. B. .STOCKDALE,
President. General Manager.
We have audited the books for the year ending 31st December, and verified the cash, bank balances and
securities of the corporation. We have examined the statement, and it agrees with the books of the corpora-
tion. .After due consideration we have formed an independent opinion as to the position of the corporation;
and with our independent opinion so formed and ac;oi-ding to the best of our information and the explanations
given us, we certify that in our opinion the statement sets forth fairly and truly the state of the affairs of the
corporation; and that all transactions of the corporation that have come within our notice have been within
the powers of the corporation.
GEORGE EDWARDS, F.C.A., 1 A„H;t„„
H. PERCY EDWARDS, C.A., /^"oiiors.
Toronto, 25th January, 1921.
rdiiHiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiioMiiiiiiiiiinoiiiiw
of EDWARDS, MORGAN & COMPANY,
Chartered .Accountants
410
THE M((TsETARY TIMES
Volume 66.
BRITISH COLUMBIA ELECTRIC
RAILWAY
The Twenty-Fourth Ordinary General Meeting of
the members of the- British Columbia Electric Railway Com-
pany, Limited, was held on Thursday, Jan. 20, at the In-
stitute of Ch£.rtered Accountants, Moorg-ate Place, Moorgate
Street, London, England, Mr. G. P. Norton presiding.
The Secret.\RY (Mr. R. W. Bartlett, A.C.A.) having read
the notice convening- the meeting and the report of the
auditors,
The Chairman said: Ladies and gentlemen, it is very
pleasant for us to meet you again with a report which shows
clearly the improvement which has taken place in the com-
pany's affairs during the past year. As a result of increased
populr-.tion and expanding trade our revenue has increased.
Until last year, as you are aware, no dividend had been paid
on the preferred ordinary stock since the year ended June 30,
191.5, or on the deferred ordinary stock since the year ended
June 30, 1914.
We should, however, be satisfied with the results achieved
this year if we were assured of being permitted to carry on
our business permanently under reasonable conditions. With
permanent conditions established on a z-easonably remuner-
ative basis we could secure the necessary capital to proceed
on the progressive lines adopted in the past with great ad-
vantage to British Columbia. Without satisfactory perman-
ent conditions we cannot secure the required capital and shall
be tied down to a very confined policy.
We realize, and British Columbians must realize, that
pre-war returns are not sufficient to attract capital for the
development of public utilities such as ours, the growth of
which is inevitable if the districts we serve are to receive
in the future the services they have been accustomed to in the
past. I trust it is no longer necessary to tell the British
Columbian public, and the local authorities, that the develop-
ment of our utilities is essential to the development of the
Province, and thp.-t we must be allowed to earn a return
sufficient to attract capital at the current market rates.
As you are aware the company's debentures are irre-
deemable and consequently a considerable part of the pro-
vision which the Directors have always made for depi-ecia-
tion has accumulated in cash and is being utilized for neces-
sary extensions and developments. It is, I think, unprece-
dented for a company of this size and character to be
financed on perpetual debentures. Had our debentures been
redeemable, much of the provision made for depreciation
would have been absorbed by the redemption fund and we
should have been compelled to ask you for fresh capital to
meet the further needs of the communities we serve. Both
the public in British Columbia and the Shareholders may
congratulate themselves that the sound policy of the com-
pany in the past has enabled it to meet the continued growth
of the company without having recourse to the issue of fresh
capital which at the present time would, of course, command
a much higher rate than the return we are now earning.
British Columbia has an enoi-mous supply of lumber and
minerals and the raw materials of which the world stands
in need to-day, her industries and shipping are increasing,
and all that is needed is to develop a sense of security in
the minds of investors. I am constantly asked what is
wrong with this company to account for the low prices of
our securities and stocks. There is nothing wrong with the
company. It is in a thoroughly strong and healthy position
with excellent prospects. The low prices are due to Stock
Exchange conditions and to a lack of complete confidence
among investors that a thoroughly fair arrangement for the
control of rates and fares will be arrived at. There is no
reason why the company should not share to the full in the
prosperity of the Province which we have done so much to
create.
I feel I cannot conclude m> remarks without an expres-
sion of gratitude to our management for the splendid ser-
vice they have rendered to the company. Times have been
difficult and the work strenuous, but all situations have been
met with courage, zeal and ability.
On your behalf, ladies and gentlemen, and on behalf of
the board I thank them sincerely for their efforts.
Mr. J. Davidson : A year ago, when we had the pleasure
of meeting you, I had just returned from a visit to British
Columbia. You will recollect that I then described, to you
the great growth which had taken place in the cities and
districts served by your company during- the six years pre-
vious to 1914, in which year the war called a halt to de-
velopment. I also described to you the greater railway and
ocean transport facilities which Vancouver and British Col-
umbia generally enjoy to-day as compared with then, and
the greater opportunities for future growth which now exist,
and I suggested that it would be a disregard of precedent to
anticipate that the growth of Vancouver and the districts
served by your company would be less during the next six
years than it was in the six years previous to 1914.
There cannot be any growth in a modern community
without a corresponding growth in demand for the essential
utility services. These again cannot be provided without
capital outlays, as is evidenced by the manner in which our
capital investment has increased.
In 1908 our capital, including debentures, was £1,880,4.58;
in 1910 it had increased to £3,535,341; in 1912 to £6,164,855;
and since then it has increased to £8,913,870.
Ample and enterprising public utility services are a
necessary r-'Sset to a progressive community, and communi-
ties in general recognize that dependable and ample services
attract new population and industries. It has been our policy
in the past to provide for services reasonably well ahead of
the immediate requirements of the communities we serve.
We were able to do this in the past because the return which
we could give you on the capital employed, and promise you
on the further capital required, was reasonably attractive
and stable. In the past, wages, cost of materials and the
other factors -which enter into working expenses were within
certain limits, comparatively stable, and we were thus able
to forecast with considerable accuracy the return which could
be expected from the expenditure of additional capital. In
other words, we could develop with a feeling of confidence
that the charges which we were permitted to make for our
services would be sufficient to meet the working expenses
and leave a reasonable return upon the capital employed.
Well managed and prudently financed public utility com-
panies in Canada and the United States were in pre-war days
in similar position, and their securities, like ours, were re-
garded as safe and attractive investments. Owing, however,
to the economic changes produced by the war, public utility
companies everywhere had to face enormously increased costs
of operation which made it impossible for them, while re-
strained from collecting higher charges, to continue to pay
a reasonable return on the capital employed, or even, in many
cases, to continue to give an efficient service.
In most cases no legislative or other authority at that
time existed enabling public utility companies to increase
their charges to meet the increased cost of operation, and,
in consequence, their securities became discredited. As a
result, many of them reached such a condition of embarrass-
ment as to be unable to raise fresh capital for necessary ex-
tensions or even to maintain their properties in a satisfactory
state of reps-ir.
To meet this serious condition of affairs, which was in-
jurious alike to the companies and to the public they served.
Public Utility Commissions, where such did not previously
exist, were established in the Provinces of Canada and in
most of the states of the Amei-ican Union charged with the
duty of considering the altered conditions and fixing rates on
a scale sufficient to meet operating expenses and pay a reas-
onable return on the capital employed. When I addressed
you last year I had hoped that the establishment of such a
Public Utilities Commission in British Columbia was to prove
a permanent solution of the difficulties of your company in
February 11, 1921
THE MONETARY TIMES
regard to the matter of rates. Owing, however, to the cir-
cumstE'iices explained in the report, this is not the case.
A way out of the difficulty is being sought, and until we
can be sure of being able to continue to collect charges which
will give a reasonable and dependable return, it must ob-
viously be impossible to obtain the further capital necessary
to meet the future expansion of business.
The growth in the cities and districts served by us h&s
in the past been greatly encouraged, and has followed closely
the expansive policy adopted by your company, and in the
interests of the communities concerned, the directors would
like to continue the policy of the past if operating condi-
tions are reasonable and it is possible to continue such a
policy without sacrificing the interests of the shareholders.
It seems to me th&t it should be a matter of concern to the
communities themselves, and also a matter of concern to the
Province, that your company should be put and retained in
a position which will enable it to adopt in the future an ex-
pensive policy as in the past. It seems to me also that this
is a matter which h&s an importance beyond the Province,
because your company handles interchange of traffic both
w^ith the United States lines and the main Canadian railways
to an increasing extent each year. La^st year we handled
9,861 freight cars, as compared with 7,463 the previous year.
There is yet another aspect of the case which is, I ven-
ture to think, a matter which affects Canadian interests as
a whole, a^nd it is this: Your company has now grown to
very great importance, it and its subsidiaries have a com-
bined share and debenture capital of £8,913,870, almost the
whole of which is held in Great Britain by some 12,000 sep-
arate registered holders. Each of these holders is a poten-
tial advertiser of Canadian investments cither for good or for
ill. If conditions securing you a fair return upon your exist-
ing investments are maintained by stable and reasonable
legislation, you will keep your existing investment and be
encouraged to add to it as convenience dictates: if condi-
tions are allowed to become such that we CK^nnot earn for you
a reasonable return on your investment, it would be no more
than natural that you should refrain from investing any
further in that direction and discourage others who might
be inclined- to do so.
I have every hope that stable conditions will be reached
and retained. Apart from any other considerations it seems
to me that a strong and healthy public utilities company is
so essential to the well being E'nd expansion of progressive
and ambitious communities that they may be relied upon to
insist that the company providing their utility services is
permitted to operate under conditions which will ensui-e a
reliable service capable of immediate expansion to meet in-
creasing requirements.
In conclusion, I desire to associ&te myself with the re-
marks which your Chairman has made regarding the splendid
service which the management have rendered to the com-
pany. I met Mr. Kidd, your general manager, in Toronto
last November and discussed with him the affairs of the
company, end I have great pleasure in acknowledging the
debt which the company owes to his ability and' resourceful-
ness and to the untiring energy and zeal of himself and his
assistants. (Applause.)
The Chairman: Ladies and gentlemen, I have now
formally to move: "That the balance sheet as at June 30,
1920, and the revenue account for the ye&r ended on that
date, together with the reports of the directors and auditors
thereon, be and are hereby received and adopted."
Mb. Davidson seconded the resolution and after the
Chairman had replied to a few questions it was put to the
meeting and carried unanimously.
On the motion of the Chairman, seconded by Mr.
Harold G. Brown, the dividends recommended were approved.
Sir. Ernest Harvey, K.B.E., proposed the re-election of
the retiring directors, Mr. G. P. Norton and Mr. Harold G.
Brown, and the motion was seconded by Mr. T. Blundell
Brown and unanimously agreed to.
Thanks to the Staff
Mr. Harold G. Brown, in proposing a vote of thanks to
the general manager, the assistant general manager and
the staff in British Columbia, said that the company had had
a much more prosperous year than it had experienced for
many years past, and he was sure that all his colleagues on
the board would agree with him when he s&id that its success
was due in a large measure to the zealous and untiring way
in which Mr. Kidd, Mr. Murrin and the other principal mem-
bers of the staff in British Columbia had stuck to their guns
at a time when they received very little thanks and when
there was very little visible result for their efforts. All
through the war they experienced an extremely difficult time,
and he felt that the stockholders could not thank them too
heartily for all they had done during the last six years.
(Hear, hear.)
Mr. T. Blundell Brown seconded the motion, remarking
that the difficulties of running a company of this magnitude
were very great, but he believed that in the hands of the
present mancgement the future of the undertaking was very
bright.
The vote was unanimously accorded.
The auditors were re-elected, on the motion of Mr.
Nicholson, seconded by Mr. Binstead, and a hearty vote of
thanks to the Chairman and directors concluded the pro-
ceedings. 407
EQUITABLE SECURITIES. LTD.
Purchase of the entire real estate holdings of the Equi-
table TiTJst Company, Winnipeg, to the value of $23.5,000 by
the Equitable Securities, Ltd., has been announced. The Equi-
table Securities, Ltd., is a new corporation, and has been
formed for the purpose of carrying on a general real estate
business, and the holdings secured from the Equitable Trust
comprise both city and farm properties. The incorporators
of the new company are E. E. Hall, president of the Do-
minion Loan and Securities, Ltd.; Arthur Congdon, president
of Congdon and Marsh; J. T. Haig, K.C., M.L.A.; W. P. Riley,
president of Western Grocers, Ltd.; F. S. Harstone, of Har-
stone Coal Co., Ltd.; W. L. Parrish, of Parrish and Hein-
becker; and Dr. J. N. Hutchinson.
The officers of the Equitable Securities, Ltd., are: E. E.
Hall, president; Arthur Congdon and J. T. Haig, M.L.A.,
vice-presidents; O. S. Clefstad, secretary. G. F. (Bert) Parker,
formerly in the land department of the United Grain Growers,
is the manager of the new organization. The offices of the
Equitable Securities are at 208 Sterling Bank -Building,
Winnipeg.
BRITISH MANUFACTURERS IN CANADA
The Canadian Association of British Manufacturers and
Representatives, organized two years ago, with branches in
Montreal and Toronto, in adopting a new constitution at the
annual meeting, held in Montreal on January 21, agreed upon
having one official head for the organization, instead of having
one for the Quebec and one for the Ontario association, with
which they began their work, the object of the change being
to accentuate the spirit of co-operation between the two
organizations, looking to further extension of their power
and influence. G. A. Marshall, Capt. John Harris and W. E.
Bunny, president, vice-president and secretary, respectively,
of the Toronto association, were present.
In conformity with the plan of the new constitution, the
choice of officers was confined to the election of a first and
second vice-president and an executive council for the Mont-
real association, which resulted as follows: First vice-presi-
dent F. I. S. Spielman; second vice-president, John E. Ritchie.
Executive council— Allan S. Bain, St. Clair Tilley, Harold
Brooks. W. T. Evans, N. W. Smythe, D. W. Clarke.
THE MONETARY TIMES
Volume 66.
The Spirit of Enterprise Deserves Fostering
Business Conditions Changed Almost Overnight — Agitation
for Pre-War Prices Killed Buying— Bank Credit and Spirit
of Enterprise Must Go Hand in Hand in Re-Building Business
By B. E. HOWARD,
Manager, Imperial Bank, Walkerville, Ont.
"T\ON'T overstock; watch yourself, or you will get
■L' pinched when the decline sets in." Mr. Editor,
you have heard that phrase yourself. Bankers, who are
always cautious and but seldom original have been shouting
the words these four years. The right eye of a banker
is set into a fixed focus with watching perpetually for un-
pleasant contingencies which e.xperience has taught us to
expect sooner or later. When prices soared in response
to the economic situation created by the war, the word was
passed, "don't overstock." When prices continued to soar in
spite of every prophesy after the war, and while the public
continued to buy up every luxury in sight between intervals
of demanding more wages, bankerly advice was about the
only thing which could be counted upon not to advance over
night.
Up until recently many a client had a comeback; here
was one, "Good morning — now just a minute please, let me
speak first to-day — I'm not overstocked. If you want to be
really useful tell me where I can get a little stock — enough
to meet trade demands this month, or this week, or this
day." The year 1920 seemed full of business, literally
brimming with trade and prospects when ... a stop
came. The armistice itself was not more sudden. Trade
orders were cancelled almost over night. Why? If there
be an overstock of goods on the shelves of Canada, bankers
have been wasting great efforts of breath for four long
years. If the shelves be not glutted, who called, halt?
I
Banks Can't Do Everything
One answer to the question will certainly be, "the banks."
Time of trades depression are open season for attacks on
banks, but probably there is less criticism of this kind now
than in days gone by. Old Father Economy is generally
recognized as an irresistible force behind the banks, and be-
hind us all. When things get out of hand he is bound to let
us know that settlement day is approaching. Things were
out of hand — everybody knew it. While production was
not even up to standard, consumption was extravagant — even
wasteful, with both wages and profits claiming higher re-
wards. Could any banking system dodge that situation?
Of course not, readjustment was inevitable.
Father Economy was out of patience with us. He had
been hinting at readjustment for some time and we would
not listen. Exports of our goods were steadily declining all
year, while we were steadily increasing our demands for the
goods of foreign lands. Sometimes on the farm there is a
hen which eats her eggs. Any farmer knows what to do
with a hen like that. She is not worth her corn, and her
status is forthwith readjusted with an axe. Hints did not
affect our optimistic extravagance, but at last the call came
very loud and clear. And then the ranks of the consumer
heard, and hearing came to a full- stop.
Now the long-heralded movement towards deflation has
set in, and with it public confidence has switched over and
become centred in the rise of the lowly dollar. I think the
tendency now is to boom the dollar. We Canadians grow
too enthusiastic over trying to make a profit quickly. What-
ever it may be — real estate, oil wells, money, or anything
else that is rising in value through economic pressure, we
are inclined to seize upon and boom along the heights be-
yond natural boundaries. Usually the band plays while the
boom marches on, but we cannot hold the position very long,
and the tune turns out to be the one the old cow died on.
We may try to reform a metaphorical hen by having her eat
nothing, forgetting that if she eats nothing she also pro-
duces nothing. The hen, too, must obey natural laws. We
may postpone dinner for, say, an hour, washing perhaps
one day, clothing while the seasons permit, and building
until the roof leaks. We are in limited time compelled to
come to market.
Public Mind is Upset
I questioned a manufacturer upon how his business was
turning and when he expected to open his large factory.
This was the answer, "I don't know any more than you do.
The agitation for return of pre-war prices has killed busi-
ness by upsetting the public mind. My trade is not stocked
up — hand-to-mouth orders come in. But we do not look for
much business, and we cannot start our factory until the
air is clear of false price theories and agitations."
This charge should be gravely considered. We have
seen many comparisons between present-day and pre-war
prices, and heard a great deal too much about pre-war
standards of exchange coming back. It is all beside the
mark. No matter what prices were before the war, busi-
ness men recall that in 1914 a trade depression had started
which looked serious. Prices were falling and men were out
of work. Only a Spirit of Enterprise awakened by the de-
mands of war saved the situation.
The Spirit of Enterprise is a great National asset. It
is as necessary to industrial prosperity as is the credit sup-
plied by banks. It is the will which applies power to factory
wheels. It is the spark which ignites human effort and so
keeps progress rolling. ' Strong though it be in our civiliza-
tion, this element is not able to stand against market up-
heavals. A boom to drive up the value of money will shut
down factories. Then when everything has ceased, earnings
and production alike, we have a case of stagnation, or, bad
times. I am not trying to prove that we should, or could
avoid readjustment in the trade relationship between goods
and the dollar. But it would seem that there is no necessity
for a general dislocation of trade such as a money boom
would threaten. The readjustment, left to the sole direction
of Father Economy, will be a true level, with the balance
between purchasing power and goods accurately adjusted.
Once set in the new position, trade should go on better than
ever, and confidence would return soon. At least, this
would be the position so far as I am able to make it out.
And if moralizing be permitted in The Monetary Times
I would say, "Be hopeful and cheery, and let natural law
take its course unhampered by speculation and legislation."
CANADA LANDED AND NATIONAL INVESTMENT CO.
A profitable year was experienced by the Canada Landed
and National Investment Company, Ltd., in 1920, net profits
amounting to $194,874, as compared with $1.51,683 for 1919.
After making provision for interest on debentures and other
expenses, the dividend of, 10 per cent, was paid, as compared
with 9 per cent, previously, and a balance of $.50,590 was
carried forward.
Loans on mortgages amounted to only $4,374,089, as
compared with $4,657,839 in 1919, but the company's holdings
of securities increased from $1,586,521 to $1,768,876. Under
liabilities to the public, sterling and currency debentures
were reduced from $3,931,754 to $3,578,894. The resei-ve fund
is now $1,355,000, or $150,000 in excess of the paid-up capital.
February 11, 1921
THE MONETARY TIMES
The Toronto Mortgage Company
The Annual General Meeting of the Shareholders of the Toronto Mortgage Company was held at its offices, 13 Tor-
onto Street, at 12 o'clock noon, Wednesday, February 9th. On the motion of T. H. Wood, seconded by T. Gilmour, the
President, Mr. Francis, took the chair, and the Manager acted as Secretary. The Secretary read the notice calling the
meeting, after which he read the minutes of the last Annual Meeting, which were confirmed. The Secretary then read
the Financial Statement, the Profit and Loss Account for 1920, and the Annual Report. The Financial Statement and
the Profit and Loss Account follow: —
Financial Statement for the Year Ending 31st December, 1920
ASSETS.
Office Premises in Toronto Street, unencum-
bered 5
Real Estate held for Sale
Mortgages at face value, less provision for
possible depreciation —
Principal $1,775,355.57
Interest 1,886.04
45,000.00
None
1,777,241.61
Loans on Stocks and Bonds 144,608.64
Dominion of Canada and Provinces of Canada
Securities 460,967.13
Canadian Municipalites and School District
Debentures 528,169.19
Other Bonds and Debentures 34,603.73
Stocks fully paid up 60,200.00
Cash in Chartered Banks 114,805.02
Cash in Office 2,907.02
LIABILITIES.
To the Public
Debentures Sterling —
(£273,7.56 7s. 7d.) $1,332,281.07
Debentures Currency 239,317.65
Deposits, Savings Accounts.
Accrued Interest on De-
bentures
Reserved on Account of Ac-
crued Income Taxes . . .
To the Shareholders
Capital Stock Subscribed —
$724,550.00
Capital Stock fuUv paid. . . .$
Reserve Fund ...$670,000.00
Added in 1920 . . . 30,000.00
92,284.70
16,835.16
9,304.80
$1,690,023.38
Total $3,168,502.34
Unclaimed Dividends ....
Dividend declared and un-
paid, due 1st Januarv,
1921
Profit and Loss Account —
Balance carried forward
724,550.00
700,000.00
38.25
16,302.38
37,588.33
Total
-$1,478,478.96
.$3,168,502.34
PROFIT AND LOSS ACCOUNT
DR. CR.
Interest (at par of Exchange) on Sterling De- Balance brought forward $ 39,412.76
bentures paid and accrued $ 74,480.48 Interest on Investments, and Net Rental from
Interest on Currency Debentures paid and Office Premises 216,641.97
accrued 12,619.72
Interest on Deposits 3,329.27
Charges on Moneys borrowed and lent 2,893.51
Cost of Management, viz.: Salaries, Directors'
and Auditors' Fees, Office Rent, etc 21,432.21
Dominion, Provincial and Municipal Taxes 8,501.71 1
Dividends on Capital Stock at 9% 65,209.50
Transferred to Reserve Fund 30,000.00
Balance carried forward 37,588.33
Total $256,054.73 ' Total ■ ■ $266,05i.73
W. GILLESPIE. Manager. HERBT. LANGLOIS, Vice-President.
We have audited the Books and Accounts of the Toronto Mortgage Company for the year ending 31st December,
1920, and have verified the cash, bank balances and Securities of the Company, .\fter due consideration we have formed
an independent opinion as to the position of the Company. In our opinion, so formed, and according to the best of our
information and the explanations given to us, we certify that, with the reservations provided, the above statements set
forth- fairly and truly the state of the affairs of the Company and are in accordance with its books. All transactions of
the Company that have come within our notice have been within the powers of the Company.
E. R. C. CLARKSON, F.C.A., 1 j„j:,„,.,
Toronto, 11th January, 1921. j. HARDY, F.C.A., ) ^^'^"'"^•
REPORT OF SCRUTINEERS.
„, , ^ Toronto, 9th February, 1921.
We hereby certify that the follovvmg gentlemen have been unanimously elected Directors of the Toronto Mortgage
Company at the Twenty-second Annual Meeting, held at the offices of the said Company this day, at 12 o'clock noon:—
Wellington Francis, K.C., Thos. Gilmour, C. S. Gzowski, Hon. Geo. S. Henrv, Herbert Langlois, Thos. H. Wood, Walter
Gillespie.
(Signed)
(Signed)
Edward R. Greig,
W.M. Martin,
Scrutineers.
At a subsequent meeting held by the Board, Mr. Wellington Francis, K.C.. was re-elected President, and Mr. Herbert
Langlois, Vice-President.
THE MONETARY TIMES
Volume 66.
EXPRESS COMPANIES' SUBSTANTIAL INCREASE
Board of Railway Commissioners Recognizes Necessity of
Fair Return Upon Capital — Some Reduction in
Expenses Anticipated
IN a lengthy judgment, the Board of Railway Commissioners
g:rants to Canadian express companies an increase of 35
per cent, on first-clasa rates, 25 per cent, on second-class and
20 per cent, on commodity rates, including, principally, cream,
fish and fruit. The judgment, which is concurred in by all
the commissioners who sat in the case, was written by Chief
Commissioner Frank B. Carvell, and was made public on
February 2. In addition to the increases mentioned above, it
provides that the ra^te on all spirituous liquors in the future
is to be increased to first class. The cartage differential at
non-cartage points has been eliminated, and as a result ex-
press charges will be the same to all points whether city,
town or country.
Entitled to 7 Per Cent.
Taking into consideration future profits from invest-
ments &nd money order business, which the judgment de-
cides shall be accounted for as revenue, the increases it is
stated, are expected to produce "only sufficient revenue to
take care of operation and depreciation and provide a suffi-
cient sum with which to pay interest on investments at 7 per
cent." Mr. Carvell takes the ground that the express com-
panies have proved that they are entitled to an increase. He
states that the figures filed by the applicants show that the
Dominion Express Co. claims its deficit for the past year
will be $1,609,444. He prefers to accept the figures presented
by this company in preference to those submitted by G. R.
Geary, K.C., counsel for the city of Toronto, and compiled by
Messrs. Clarkson, Gordon and Dilworth, accountants, on the
ground that "the company which is doing the business and
paying the bills must have a much more intimate knowledge
of actual conditions than any accountant could h&ve."
"The express companies asked for a 40 per cent, in-
crease," says the judgment, "and I have given their best esti-
mate of the results, should this request be granted. They
have stated that if the carta-ge differential were eliminated,
they could produce practically the same results on an in-
crease of 33 '/a per cent. I have decided that this differential
should be eliminated. I am also of the opinion that there
will be some reduction in the cost of carrying on the express
business during the coming year, especially in the mainten-
ance and feed of horses, maintenance of equipment and pur-
chase of supplies, and, while it will not be very great, yet,
with the allowance that should be made for the revenue from
the money order business, I am of the opinion that an in-
crease of 30 per cent, would produce them about the fomount
of money which they should receive — viz., sufficient to pay
the costs of operation, maintenance and depreciation, and
leave sufficient to pay interest upon the actual investment
and possibly a small amount of money for reserve. These
figures relate more particularly to the Dominion Express
Co. and to the Canadian Express Co., as the whole case
seemed to be based upon their requirements."
The chief commissioner goes on to say that the result
of one day's shipments by the Dominion Express Co. showed
that, by weight, the goods moving on first-class rates
amounted to 61.36 per cent, of the whole, those moving on
second-class rates to 32.68 per cent., and those moving on
commodity rates to 5.96 per cent.
It is set out that the increases authorized in the judg-
ment may be provided for by the publication and filing on
one day's notice at all express offices of blanket supplements
to the existing tariffs.
In opening the chief commissioner refers to the date
of the application by the Express Association of Canada for
a flat increase of 40 per cent, in all existing express rates.
This application, he says, was made on July 22 last on be-
half of the American Railway Express Co., the Canadian
Express Co., the British-American Express Co., the Centr&l
Canada Express Co., and the Dominion Express Co. It was
alleged that the companies were operating at a loss, and
that this increase would be required in order to take care of
the actual deficit g'nd give a small return sufficient to pay
interest on the actual moneys invested and leave "something
foi- reserve. The case was opened in Toronto, sittings sub-
sequently being held at many points all over the Dominion.
When the board sat at Saskatoon, a supplementary state-
ment was filed by the Dominion Express Co., in which it
showed increases in operating expenses, and estimated that
the total deficit for 1920 would be $1,821,026.
The chief commissioner says that at the final hearing in
Ottawa practically every phase of the express situation in
Canada' was discussed. The city of Toronto, the National
Dairy Council, the Boards of Trade of Toronto and of Mont-
real and the Canadian Manufacturers' Association were all
represented. Mr. D'Arcy Scott, appearing for the National
Dajry Council, it is stated, directed his case entirely against
increases in commodity rates. Mr. Geary, i-epresentative of
the city of Toronto, dealt very exhaustively with the finan-
cial aspects of the Dominion Express Co., whose books had
beerr audited by the firm of Clarkson, Gordon and Dilworth.
"It was admitted," says the judgment, "that the books were
intelligently and honestly kept, the only difference of opinion,
as I construed the evidence, being as to what the results
would be to some extent for the year 1920, and to a much
greater extent for the year 1921."
Effect of Freight Increases
Mr. Carvell draws attention to the fact that freight rate
increases granted in September, 1920, greatly increased the
amount which the Dominion Express Company had to pay
the C.P.R. for carrying goods. The Dominion Express Co.
pays the C.P.R. on the basis of one and one-half times the
first-class freight rate for its goods of that class carried by
the railway company. In the case of the Canadian Express
Co. the increa'se in freight rates played no material part,
because this company pays to the Grand Trunk Railway Co.
and other lines over which it operates, 50 per cent, of its
gross earnings.
"It is important," he says, "that the express rates should
be considerably higher than the freight rates; in fact, suffi-
ciently high to force the transportation of ordinary freight
upon freight trains rather than upon passenger trains. It is
quite evident to any person who travels, that passenger trains
are being constantly delayed, both as to making running time
and at junction points and at all stations, by the handling of
express business. A large amount of heavy commodities is
carried by express, which might be just as well carried by
freight, and thus relieve the passenger trains of much un-
necessary traffic."
Assistant Chief Commissioner S. J. McLean and Com-
missioner A. C. Boyce, while in agreement with the conclu-
sions and rate adjustments provided for in the main judg-
ment, issued a supplementary statement, commenting on
certain features of the judgment.
Debkntures for Sale
DRUMHELLER MUNICIPAL HOSPITAL BOARD No. 3
Sealed tenders will be received up to and including
March 26th next by the Drumheller Municipal Board Num-
ber 3 for the purchase of Twenty-eight thousand dollars
($28,000) twenty -year seven per cent. Hospital Debentures.
Repayable in equal annual instalments of Principal and In-
terest in total.
The highest or any tender not necessarily accepted.
For further information write
S. P. WILLIAMS,
Secretary -Treasurer,
406 Drumheller.
February 11,. 1921
THE MONETARY TIMES
39
DIVIDEND NOTICES
BANK OF MONTREAL
Notice is hereby given that a Dividend of Three Per
Cent, upon the paid-up Capital Stock of this Institution has
been declared for the current quarter, payable on and after
Tuesday, the First Day of March next to Shareholders of
record of 31st January, 1921.
By Order of the Board.
FREDERICK WILLIAMS-TAYLOR,
General Manager.
Montreal, 21st January, 1921. 373
THE ROYAL BANK OF CANADA
DIVIDEND No. 134
Notice is hereby given that a Dividend of Three Per
Cent, (being at the rate of twelve per cent, per annum) upon
the paid-up capital stock of this bank has been declared for
the current quarter, and will be payable at the bank and its
branches on and after Tuesday, the first day of March next
to shareholders of record at the close of business on the 15th
day of February.
By Order of the Board.
C. E. NEILL, General Manager.
Montreal, Que., January 14, 1921. 371
THE CANADIAN BANK OF COMMERCE
DIVIDEND No. 136
BANK OF HAMILTON
QUARTERLY DIVIDEND NOTICE
A Dividend of Three Per cent. (3':'<r) for the Quarter,
together with a Bonus of One-half of One Per cent. ( % 9c )
on the Paid-up Capital for the three months ending 28th
February, 1921, has been declared, and will be payable on
the 1st March, 1921. This makes a total distribution of
Thirteen Per Cent. (137f) for the financial year. The divi-
dend and bonus on New Stock will be computed at the same
rates, but in accordance with the terms of issue, and both
will be payable to shareholders of record at close of business,
February "l5th, 1921.
By Order of the Board.
J. P. BELL, General Manager.
Hamilton, 24th January, 1921. 397
(Tbe IRiorDon ipulp & Ipapcr dompanp, %tt>.
Common Stock Dividend No. 20
Notice is hereby given that a quarterly dividend of 2Vs':'c
has been declared on the Common Stock of the Company for-
the quarter ending December 31st, 1920, payable Februarj'
15th, 1921, to shareholders of record at the close of business.-
on February 9th. 1921.
By Order of .he Boaid.
F. B. WHITTET, Secretary-Treasurer.
Montreal, February 2nd, 1921. 403
Notice is hereby given that a dividend of Three per cent,
upon the capital stock of this Bank, being at the rate of
twelve per cent, per annum, has been declared for the quarter
ending 28th February next, and that the same will be pay-
able at the Bank and its Branches on and after Tuesday,
1st March, 1921, to shareholders of record at the close of
business on the 13th day of February, 1921.
By Order of the Board.
JOHN AIRD, General Manager.
Toronto, 21st January, 1921. 279
UNION BANK OF CANADA
DIVIDEND No. 136
Notice is hereby given that a dividend at the rate of
10' ; per annum upon the Paid-up Capital Stock of the Union
Bank of Canada has been declared for the current quarter,
and that the same will be payable at its Banking House in
the City of Winnipeg, and also at its branches, on and after
Tuesday, the First day of March, 1921, to shareholders of
record at the close of business on the 12th day of February
next.
The Transfer Books will be closed from the 14th to the
28th day of February, both days inclusive.
By Order of the Board.
H. B. SH.\W, General Manager.
Winnipeg, January 21st, 1921. 398
Condensed Advertisements
"PosUu.ns U.inteJ, ■ ;fc per word : all other condenbtd advertisements
5c. per word. Minimum charge for any condensed advertisement, 65c
per insertion. AH condensed advertisements must conform to usual
Style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance; .SO per cent, extra if charged.
EXECUTIVE. — Age 35. Twenty years' experience.
Eight years in Railway Operating and Construction Depart-
ment, twelve years in -Accounting Department, past five
years as General Auditor. Expert Accountant, thorough
knowledge of railway and construction materials, well in-
formed in financial matters, seeks engagement. Box 381,
Monetary Times, Toronto.
WANTED.— By Established Brokers— Toronto General
-Agency for British fire company. Can guarantee good pre-
mium income first year. Box 393, Monetary Times, Toronto.
SECRETARY-TREASURER, age 30, of large company
in British Columbia desires connection in similar capacity
with well-established business in Ontario, Hamilton pre-
ferred. First-class accountant, with excellent credentials; the
more responsibility to be assumed, the better. Prepared to
go east immediately for interview for any legitimate propo-
sition. Apply by wire or letter to H. Anscomb, 1921 Govern-
ment Street, Victoria. B.C. 40.5.
THE MONETARY TIMES
Volume d6.
CAPITAL TRUST COMPANY'S BUSINESS DOUBLED
Estates and agencies under administration by the Capital
Trust Co., Ottawa, more than doubled in 1920, the figure now
being $2,719,350. The guaranteed investment account also
increased from $005,302 to $779,351. Net profits for the year
increased slightly at $27,256, and the usual dividend and
provisions were made.
The paid-up capital of the company has now passed the
half-million mr..rk, and is now $540,000. Total assets are
$4,109,581, as against $2,280,122 at the end of 1919. A branch
office of the company was opened in Toronto during the year
to meet the growing business in western Ontario.
CANADIAN MORTGAGE INVESTMENT COMPANY
Net income of $105,524 for the year ending December 31,
1920, is shown by the Canadian Mortgage Investment Com-
pany in the annual report submitted to the shareholders at
the annual meeting last week. This is an increase of nearly
$8,000 over the net earnings of the company in the previous
year. With the sum of $42,084 brought forward from last
year, the amount available for distribution was $147,608.
Out of this the usual dividends at the rate of 6 per cent, per
annum were paid, amounting to $74,375. Dominion of Canada
war taxes were $1,245, while the sum of $8,224 was reserved
under the Income War Ta.x Act for 1920 taxes. Fifty thou-
sand dollars were transferred to the reserve fund, leaving a
balance carried forward of $13,764, as against $42,084 in 1919.
The reserve fund is now $500,000.
Total assets at the close of the year were $2,382,504, as
compared with $2,386,927 a year ago. Loans on first mort-
gage, less repayments thereon, stand at $1,421,733, as against
$1,413,457 in 1919.
WESTERN CANADA INVESTMENT CO., LTD.
The thirteenth annual general meeting of the Western
Canada Investment Co., Ltd., was held in London, Eng., on
December 21. J. B. Colmer, the chairman, said: "The total
revenue for the year was £19,094, as against £16,894 in the
preceding year, an increase of £2,200. As stated in the re-
port, the interest collected showed an increase of £1,186,
which is due partly to increased investments and to certain
loans, on which, during part of the war, no interest had been
charged or collected, having now been placed in good stand-
ing. The balance of the increased revenue is due to the low
rate of exchange prevailing between England and Canada.
The interest in arrear is less this year by £1,142, and our
local advisers in Winnipeg report that we may look upon
n:ost of the arrears as good.
"After paying management expenses, debenture interest,
etc., the net revenue is £7,748, as against £6,170. To this has to
be added the amount carried forward of £3,552, making a
net available balance of £11,300. After deducting the pre-
ference dividend there is a surplus of £7,800. It is proposed
to recommend the payment of a dividend on the ordinary
shares of 5 per cent., amounting to £2,500, and to carry for-
ward to next year £5,300.
"The directors are of the opinion that the position of
the company is satisfactory, considering the times through
which we have passed and are still passing. The company
has to pay a higher rate for its debenture money, while the
rates on loans in Canada have not materially increased.
"In addition, income tax in the United Kingdom is still
very high, and the general expenses, like those of other com-
panies, have advanced. The same remark applies to Canada,
where taxes have now to be paid which were not charged at
rll before the war. According to the reports which reach the
directors Canada is recovering from the effects of the war
more rapidly than many other countries. Local trade ap-
pears on the whole to be fairly good, although, as elsewhere,
they have difficulties to overcome."
NORTHERN TRUSTS CO.
Starting with but a very small buisness in 1904, the
Northern Trusts Co., Winnipeg, Man., has established itself
as one of the leading trust companies of the Dominion, with
its operations largely in the west. The annual statement for
1920 shows a substantial increase in business over a period
of one year. Estates, trusts, etc., are shown as $15,979,708,
compared with $11,072,120 at the end of 1919. Guaranteed
accounts are slightly lower at $1,327,755. Net profits for
the year were $136,447, compared with $137,265. The usual
dividend of 8 per cent, w&s paid.
The paid-up capital is unchanged at $1,500,000, but the
reserve and surplus has been increased from $440,918 to
$452,040. Total assets are now $19,510,250, which compares
with $14,603,458 in 1919, and $8,295,703 at the end of 1918.
CANADIAN PACIFIC'S NEW YORK OFFICES
Canadian Pacific Railw&y Co. has signed a 21-year lease,
covering the first two floors and basement of the new 21-
story building nearing completion at the corner of Madison
Avenue and Forty-fourth St., New York. The deal calls for
an aggregate rental of close to $3,000,000. The building will
be known as the Canadian Pacific Building.
The company has been maintaining five different offices
in the city, and it is planned to centralize its activities, hous-
ing them under one roof. The new move will bring together
the passenger departments of both rail and shipping interests,
lands, colonization, and development work. The freight de-
partment will continue to mainta^in an office at the Woolworth
building. Company intends to make the new building a trans-
portation centre, and negotiations are now under way with
other transportation interests to have them located in the
same building. Officials believe that competition in coming
years will be keen in the transportation field, and the com-
pany is making plans to secure its share of immigration
traffic on its steamship lines. New Y'ork City is regarded as
a strategic point.
SOVEREIGN LIFE ASSURANCE COMPANY
While the history of the Sovereign Life Assurance Com-
pany, Winnipeg, is comparatively short, the company is able
to present a favorable record of progress. The following
figures show the development over the past few years: —
1920. 1919. 1913. 1910.
Total assets. $ 1,876,792 $ 1,656,878 $1,050,050 $ 781,060
Business in
force .... 14,528,336 12,305,211 4,900,000 2,901,502
Premium in-
come .... 466,452 385,504 156,344 113,186
After making provision for all liabilities, including a net
increase in policy reserves of $219,666 and payment to share-
holders and policyholders of dividends amounting to upwards
of $20,000, the surplus at the end of December, 1920, stood
at $109,816, as against $106,491 for the previous year. Pay-
ments to policyholders, death claims, maturities, surrenders,
etc., amounted "to $123,861, which compares with $204,386 for
1919. Total receipts for the year were $531,863, while the
previous amount reported was $477,155. The increase in assets
is largely the result of increased investment in bonds and
securities and loans on policies. First mortgages on real
estate show a decrease of nearly $7,000 at $456,871.
COBALT ORE SHIPMENTS
The following are the shipments of ore from Cobalt
Station for the week ended February 4th: —
Dominion Reduction Co., 171,000 pounds. The total »ince
January 1 is 836,028 pounds, or 418.01 tons.
Februai-y 11, 1921
THE MONETARY TIMES
ilillllllllUIIIIUIIIIIIIIIIMIIIIIMIIIIIIIMIIIIIIUIIIilllllirnilMiniMIIIMMIIIIIIIIIIItlllllllllllllMlllllinillllllllllMllllllllllllllllllllllllllltllllllllllllU:
i CHARTERED ACCOUNTANTS I
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiuiiiiiiiiiiMiiiiiiiiiiMiiiniiiiiniiiniiiiiMniMiiiiiiiMMiiniiiiiiiiiiiiuiiiiiuiiiiiiiiMinMuiiiiiiiiMiiiniiiMiiuiiuin
Baldwin, Dow & Bowman
CHARTERED ACCOUNTANTS
OFFICES AT
Edmonton - • Alberta
Toronto - Ont.
CHARLES D. CORBOULD
Chartered Accoontant land Auditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
Correspondents atTcronto. London. Eng.,
Vancouver
David Mowat Donald MacTavish
Mowat, MacTavish ^ Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
W. A. Bavvdbn, C.A. (P.C.A. England and
Wales). F. H. Kidd.C.A.
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Branch at Naoaimo. B.C.
Telegraphic and Cable Address ;
" Nedwab." Victoria. B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON ONTARIO
Established IMli
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Chambers
Winnipeg, Man.
Arthur Phillips & Co.
CHARTERED ACCOUNTANTS
508-509 Electric Railway Chambers
WINNIPEG - Man.
Cable Address—" Unravel."
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS.
24 King Street West - TORONTO
AND AT:-
HAMIUTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Chiirteral Ac
Trusle
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne,
Mulholland,
Howson
&
McPherson
CHARTERED
ACCOUNTANTS
Specialists on Factory Costs and P
ROniCTi
ON
Phone
Main
3420
Ham^rt"o^°B'.d«. TORONTO |
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING - TORONTO, CANADA
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Chartered Ace
Merchants Bank Bids- 15 Wei
E R C. Clarltson
, Liquidators
lington Street West
Established IS64'
R. Williamson. C.A.. J. D. Wallace. C.A.
A J. Walker. C.A. H. A. Shiach, C. A.
RUTHERFORD WILLIAMSON & CO.
Chartered Accqunl<znts. Trustees and
Liquidators
86 Adelaide Street East. TORONTO
604 McOiLL Building, .MONTREAL
Cable Address- • WILLCO."
Represented at Halifax. St. John. Winnipeg.
HENRY BARBER &
Eatabliahed 1885
CO.
Chartered Accountants
AUTHORIZED TRUSTEES
BANKRUPTCY
IN
Grand Trunk Railway Building,
6 King Street We.l TORONTO
Your card here would ensure it being seen by the principal
financial and commercial interests in Canada.
Ask about special rales for this page.
THE MONETARY TIMES
Volume 66.
ACTION ON LOAN BY COMPANY TO SHAREHOLDERS
Supreme Court of Canada Holds Cheque Endorsed for Fur-
chase of Goods is Not a Loan to Shareholder
IN the case of Henderson' vs. Strang, recently reported in
the "Dominion Law Reports,'" a question of a loan to
a shareholder by the company arose, and on the facts it was
held that when, by a by-law of a company, a cheque in pay-
ment of a majority of its stock, was authorized to be en-
dorsed over to a subscribing shareholder's firm to finance
certain purchases of the company, this transaction cannot
be regarded as a loan to a shareholder.
The statement of the facts and the decision of the
Supreme Court of Canada, per Justice Mignault, are: "The
two main questions here are the following: (1) Did the re-
spondent Strang pay for the 510 shares which he agreed to
take in J. B. Henderson and Co., Ltd.? (2) Was the agree-
ment signed on August 24, 1910, between J. B. Henderson
and Co., Ltd., and William Strang and Son, ultra vires of
the company?
Formed Joint Stock Company
"The facts of the case are not at all complicated. It
appears that for some years James Black Henderson, of
Toronto, was the Canadian purchasing and selling agent
of the Scotch firm of William Strang and Son, of Glasgow,
Scotland, composed of William Strang and four of his
brothers. In the summer of 1909, Henderson was in rather
poor health, and Strang being in Toronto, it was decided to
form a joint stock company to take over Henderson's busi-
ness, under the name of J. B. Henderson and Co., Ltd.
Strang desired to have a controlling interest in this com-
pany, which was natural, as it was to handle his firm's
goods, and upon its formation, with a capital of $100,000,
he subscribed for 510 shares, representing $51,000 at par.
Henderson, on the other hand, sold to the new company
his stock-in-trade and good will for $23,500, taking in pay-
ment 235 fmlly-paid shares. (Four other persons subscribed
$6,200).
"All parties fully recognized that the authorized capital
of the company was more than it required to carry on its
business, and as its purchases of goods were almost entirely
to be made in Europe, and principally from the firm of
William Strang and Son, it was also evident and fully ad-
mitted by the interested parties that adequate financial ar-
rangements would have to be made in Europe in order to
buy goods there on the most advantageous terms.
Preference and Common
"Several schemes were devised and discussed, and finally
it was agreed that the stock subscribed by all save Strang
would be issued as preference stock, entitled to a 6% dividend,
and that Strang's stock would be issued as common stock.
And as to Strang's stock, inasmuch as he was advised that
it would have to be paid, he agreed to send over to the
company his cheque for $51,000, or its equivalent in sterling,
it being understood that the company would endorse the
cheque and remit it to William Strang and Son as a special
deposit free from interest, where it would serve to finance
purchases made by the company on the European market,
the company paying interest at 6% on all sums withdrawn
by it, or advanced by William Strang and Sons on account
of purchases made by the company. Strang was not to be
entitled to interest on his $51,000, and no dividend was to
be payable on his common stock until the 6% on the
preference stock had been paid, and then the latter stock
would rank equally with the common stock on any dividend
that might be declared.
"This arrangement was duly carried out and authorized
by a by-law "of the company and by a contract made by it
with William Strang and Son. The question was whether
what was done is equivalent to a payment by Strang of the
stock subscribed bv him.
"Had Strang's cheque been cashed by the company, and
had the latter immediately remitted the sum of $51,000 tq
William Strang and Son as a special deposit in accordance
with the arrangement made, it could not liave been con-
tended that Strang had not paid for his stock, whatever
opinion might be entertained with regard to the deposit of
this sum with William Strang and Son. But by cashing
Strang's cheque and remitting the proceeds to William
Strang and Son,' the company would have incurred expense
for exchange and brokerage, and this expense it avoided
and absolutely the same result was attained by indorsing
over Strang's cheque to William Strang and Son. There is
no question whatever as to the absolute good faith of all the
parties, and this being so, I cannot but think that Strang
paid for his stock as effectually as he would have done had
this cheque been cashed by the company and the proceeds
remitted to Wiliam Strang and Son. And, in my opinion,
this conclusion is fully supported by the decision of the
Judicial Committee in Larocqiie v. Beauehemin, [1897] A.C.
358.
"I am therefore of opinion that Strang paid for his
shares.
"The question whether the arrangement arrived at was
tdtra vires of the company should, in my judgment, be an-
swered in the negative. I cannot look upon the deposit of
Strang's cheque with William Strang and Son as being a
loan to a shareholder. It was what it purported to be, a
mere deposit for the benefit of the company, in order to
secure the most advantageous terms for its purchases on
the European market. And moreover, the firm of William
Strang and Son was, by the law of Scotland, duly proved in
this case, a legal entity entirely distinct from Strang per-
sonally."
PAYMENT FOR PROPERTY ENFORCED
David Moscovitch and Louis Moscovitch, trading as Mos-
covitch Brothers, manufacturers, wei-e, on January 19, con-
demned by a judgment of the Quebec-Superior Court to pay
to Delima Forget, wife of Daniel Riopel, contractor, $20,250,
being the balance of the price, and interest, of a property
defendants agreed to purchase from Joseph Pierre Gingras
on June 2, 1914.
According to the agreement, defendants undertook to
buy the property for a sum of $16,000, payable $1,000 an-
nually for five years and the balance of $11,000 on Decem-
ber 1, 1919, with interest on the outstanding amount at the
rate of 7 per cent, per annum. On July 17, 1914, the credit
under this agreement was transferred by deed to the plain-
tiff. It was alleged that defendants were now indebted in
the caiptal sum of $15,000, and this was the amount sued for
in the present action, plus $5,250 accrued interest. De-
fendants pleaded that the transfer of the credit to plaintiff
was not made in good faith, and further urged that Gingras
had consented to a further delay of the claim to the balance
of the purchase price of the property.
Judge Archer said defendants had failed to appear and
reply to the questions submitted in the "facts and articles"
of the pleadings, and as the record showed they had agreed
to pay the price of this property, it must be held that the
latter had failed to substantiate the allegations of their
defence.
The irrigated tract of the Canada Land and Irrigation
Company, which lies on both sides of SuflSeld-Blackie branch
of the C.P.R., in southern Alberta, is rapidly coming to the
fore and will soon be recognized as one of the famous agri-
cultural districts of the west. Water was delivered to this
tract during the last part of May, 1920, and was immediately
put into use to irrigate some 4,000 acres which had been
seeded during the spring. In spite of the fact that on newly-
broken land the first irrigation is a difficult matter, a very
good crop was harvested and all the farmers concerned were
pleased with the results.
February 11, 1921
THE MONETARY TIMES
iillMIIIIIMIIIIIIIIIIIIinilllllllMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIMIIIMiniinUIIMIIIIIIIIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIMIIIIIIIIII^
I REPRESENTATIVE LEGAL FIRMS \
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BRANDON
J. p. Kilgour. K.C.
G. H. Foster
H. McQueen
KILGOUR, FOSTER & McQUEEN
Barriiterf, Solicitors, Etc., Brandon, Man.
Solicitors for the Bank of Montreal. The
Royal Bank of Canada. Hamilton Provident
and Loan Society. North American Life
Assurance Company.
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barristers. Solicitors, Etc.
Solicitors for Bank of Montreal. The Trust
and Loan Co of Canada, British Canadian
Trustee.. &c., Ac.
C. F. P. Conybeare, K.C. H VV. Church. M.A.
R. R. Davidson. LL.B.
Lethbridge - • • Alta.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT. SASK.
CALGARY
Charles F. Adams, K.C.
Bank of Montreal BIdg.
CALGARY - - ALTA.
W.P. W.Lent Alex. B.Mackay. M.A. .LL.B.
H. D. Mann, M. A., LL.B.
LENT, MACKAY & MANN
Barrlil«r». Sollcltorfi, NoMrlrt, etc.
305 Grain Bxchange BIdg , Calgary, Alberta
Cable Addrett.'Lenio." Weitern VnionCode
Solicitors for The Standard Bank of Ciinada.
The Northern Trusts Co.. Associated Mort-
aage Investor'i. Ac.
J. A. Wrioht. LL.B. C. A. Wrioht. B.C.L.
WRIGHT & WRIGHT
Barristen, Solieiton, Solariei, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE Alberta
MEDICINE HAT
G. F. H. Long. LL.B. J. W. Slekht. B.A.
LONG & SLEIGHT
Barrittert, etc.
MEDICINE HAT and BROOKS, Alta.
MOOSE JAW
William Grayson. K.C.
Lester McTaggart
Grayson, Emerson & McTaggart
Barristers. Etc.
Moose Jaw - Saskatchewan
SASKATOON
C. L. DURIE. B.A. B. M. Wakelino
DURIE & WAKELING
Barrlslers and Solicitors
Solicitors for the Bank of Hamilton. The
Great West Permanent Loan Co. The
Monarch Life Assurance Co.
Canada RulldlnK Saskntonn, Canada
Chas G. Locke. Major J. McAughey.O.B.B.
LOCKE & McAUGHEY
Barristert, Solicitors, Etc.
208 Canada Bailding
SASKATOON - CANADA
TORONTO
G. W. MORLEY & COMPANY
Bu
Soli
802 Lumaden Building. Toronto
Solicitors for A C, SpaldinR & Bros of Can.,
Ltd; A.J. Reach Co of Can. Ltd; Dominion
Chautauquas, Ltd.
Special attention given to Corporation work
' and collections
Cable Address : " Morley." Toronto
EDMONTON
Hon. AC. Rutherford. K.C.LL.D.
P. C. Jamieson, K.C. Chas. H. Grant
S. H. McCuaiR Cecil Rutherford
RUTHERFORD, JAMIESON
& GRANT
Barrister*, Solicitors, Etc.
514-18 McLeod BIdg. Edmonton, Alberta
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
VANCOUVER
W. J. Bowser. K C R L. Reid. K.C
O S.WallbridRc A.H.Douglas J.G.Gibson
BOWSER. REID, WALLBRIDGE
DOUGLAS & GIBSON
Barristers. Solicitors. Etc.
ank of .Montreal (Bank of
irth America Branch)
Yorkihire BuiWing, 525 Sermonr Si.. Vtnconver, B.C.
WE BUY WE SELL
Chauvin^Allsopp & Company, Limited
FARM LANDS
And other good property. EDMONTON DISTRICT.
VALUATORS
Ground Floor. McLeod Building - Edmonton. Alta.
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES*
REGINA
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direct Private Wirel
Grain Elxchange
Calgary, Alta.
A. J. Pattison Jr. & Co.
.Members
Toronto Stock Exchange Montreal Stock E.\change
Specialists Unlisted Securities
lOe BAY STREET - - TORONTO
THE MONETARY TIMES
News of Industrial Development in Canada
Growth of Pulp and Paper Trade since its Infancy has been Phenomenal-
Development Briefly Outlined Before Engineering Institute— Iron and Steel
Output Increased Largely in 1920 — Dominion Steel Receives Small
Orders— Twenty-seven New Industries Secured by Hamilton Last Year
TRACING the development of the pulp and p^'per industry
in Canada, a subject of very wide interest at the pre-
sent time, T. L. Crossley, in a paper delivered before the
Engineering Institute of Canada, which was in convention in
Toronto last week, pointed out that paper was first made in
Canadfj at St. Andrew's, Quebec, in 1803, but so vast had the
industry now become that in the year ending March 30, 1920,
this country's pulp and paper exports were valued at $104,-
000,000, while the exports to the United States "made ex-
change" at the rate of over $340,000 every working day in
the year. The most marked progress was made in tlje period
since 1890, E'S in that year the Dominion's exports of pulp
and paper were valued at only $120. Mr. Crossley remarked
that the development and maintenaance of this industry
called for the display of great engineering ability offering a
field for the structural, hydraulic, electrical, mechanical,
chemical and forestry engineers. The- average per capita con-
sumption of paper per year was about 125 lb. in the United
States and 100 lb. in Canada and the United Kingdom.
Iron and Steel
Production of iron and steel in Canada for 1920, as in-
dicated by reports of two of our largest companies, was very
favorable, while shipments were &lso ahead of 1919. The
review by months, however, shows the falling off which took
place in the latter months. The Nova Scotia Steel and Coal
Co. produced 374,091 tons of iron and steel during the twelve
months, compared with 197,455 tons in 1919. Shipments
amounted to 94,222 tons, as against 44,786 tons for the pre-
vious year. Production of pig iron amounted to 73,829 tons,
being an increase of the ye&r of more than 38,000 tons. The
output of Wabana iron ore was 262,755 tons, as compared
with 213,410 tons previously.
The output of the Algoma Steel Corporation, Ltd., for
the six months ended December 31, 1920, with comparisons,
follows: —
1920. 1919.
Tons. Tons.
Magpie ore 83,387 120,273
Coke 269,385 181,507
Pig iron 233,332 125,662
Steel ingots 190,052 141,337
The decrease in the Magpie ore production was due to
the plant being shut down for a time for development work on
the sixth level. Unfilled orders for iron and steel on De-
cember 31, 1920, were approximately 69,500 tons. Two con-
tracts have been closed for rails for delivery during the first
half of 1921, and the directors expect further sales to be com-
•pleted shoi'tly. Orders have been received by the Dominion
Steel Corporation, according to a dispatch from Sydney, N.S.,
which will keep the company's plant partly operating for a
short while longer, and in the mea^ntime it is hoped that
further orders will be received which will prevent a complete
shutdown.
The city of Hull, Que., through the efforts of its civic
publicity commission, has succeeded in the establishment of
another large industry which will furnish employment for
upwards of two hundred residents there. The secretary of
the publicity commission, E. St. Jean, has announced that
plans had been submitted to the commission for the erection
of a branch of the Alloy Steel Forging and Milling Co., Ltd.,
of Montreal, Boston and New York, which will erect a half
million dollar foundry f,.nd rolling mill, on the property ad-
jacent to the Canada Cement Works. Construction work on
the new plant, which will occupy 37 acres and will use
2,000 h.p., will be commenced in March next. In addition to
a foundry the company will erect forging and rolling mills,
which will be used largely in connection with the manufacture
of automobile parts.
Hamilton's Growth in 1920
Industrial Commissioner Kirkpatrick has submitted a re-
port to the Hamilton, Ont., Board of Control of the activi-
ties of his department last year. He stated that 27 new
industries were secured, representing a capitalization of $7,-
500,000. In commenting on these he drew attention to the
fact that they were diversified, a number of new kinds of in-
dustries being established. A number are branches of Ameri-
can industries, and some will carry on their business for the
entire British empire from the local plants. There is one
British firm among the lot. In addition to the new indus-
tries several plants that recently located here made large
additions to their works. Mr. Kirkpatrick reported that he
had several promising prospects. One difficulty he had met
was in' securing suitable accommodation for industries re-
quiring large sites, and he recommended the acquisition of
the Stipe property and its development for industrial pur-
poses. Another difficulty he encountered during the year was
lack of power, and this is still a problem, he states. No
bonuses or like inducements were offered to industries which
located here.
Other Lines of Industry
Conditions arising from unemployment are gradually
righting themselves in Owen Sound, Ont. The Owen Sound
Chair and the North American Furniture factories are oper-
ating after being closed down. The North American Bent
Chair Co. has taken on 60 hands, after being closed down for
some time. The situation is much less acute than a week
ago, and prospects are bright for resumption of normal in
the near future.
The new $100,000 plant of the Milton Worsted Yarn Mills
for the manufacture of worsted yarn commenced operations
last week at Milton, Ont. Orders have been secured which
will provide steady employment for a large number of hands.
In addition to the manufacture of worsted yarn, a modern dye
house has been built and equipped with the latest and most
up-to-date machinery for the dying of yarn and cloth. There
are now ten of these industries operating in Canada.
The Port Arthur Shipbuilding Co., Port Arthur, Ont.,
announces that its plant will operate on a forty-hours-a-week
basis. The reduction in hours means the loss of one full day
per week to the employees.
Conditions in the flour milling industry are good, accord-
ing to the reports of officials. J. W. Horn, manager of the
Western Canada Flour Mills, states that of the company's
90 elevators, 80 or more are in operation, while all milling
facilities are being operated full time. Officials of the Ogil-
vie Flour Mills state that the mills are operating fully. Good
business is reported by the Lake of the Woods Milling Co.
A mill hs'S been operating for several months past in
Upper Aboujagane, N.B., a few miles from Shediac, under
the management of A. M. Hudson, and is at present process-
ing flax grown in this country. Mr. Hudson is trying to
interest farmers of New Brunswick sufficiently to induce
them to grow flax, while at the same time he intends to sow
a large number of acres himself this year in connection with
the new industry.
Tentative arrangements have been made by the Cana-
dian Fibre Co. for the purchase of 750 bushels of hemp seed
to plant 1,000 acres of Manitoba land this year, according to
Col. Wm. Grassie, managing director of the company.
February 11, 1921
THE MONETARY TIMES
"Security First"
EXCELSIOR
INSURANCE LI FE COMPANY
, Canadian Compa
Ask about our Special In
merit Poltcy. Ifs ncv
IfSt-
HEAD OFFICE—
EXCELSIOR LIFE BUILDING
Adelaide and Toronto Streets
TORONTO - CANADA
I O IV n O TV GUARANTEE AND
*-• ^"^ *^ '^ ^'-^ ^^ ACCIDENT COY., Limited
Head Office for Canada - Toronto
Employers' Liability, Elevator, Contract. Personal Accident. Fidelity
OiMrantee. Internal Revenue. Sickness. Court Bonds,
reams and Automobile.
AND FIRE INSURANCE
The Western Mutual Fire Insurance Co.
Head Office - Didsbury, Alberta
President-H. B. ATKINS, M.L.A.
PARKER R. REED.
M^tnaeing Director
LARGEST ALBERTA
FIRE MUTUAL
CANADIAN STRONG PROGRESSIVE
^n& mw^^iit»i&^9fwmmt
FIRE INSURANCE
AT TARIFF RATES
Merchants Casualty Co.
Head Office : Winnipeg, Man.
The most progressive company in Canada. Operating under the
supervision of tne Dominion and Provmcial Insurance Departments.
Embracing the entire Dominion of Canada.
SALESMEN NOTE !
Our accident and health policy is the most liberal protection offered
1 of 51. no per month and up.
Covers over i.SOO different diseases.
Pays for Life if disabled through Accident or
Illness.
Fifty per cent e.\tra if confined to hospital.
Pays for Accidental Death. Quarantine. Sur-
Reon Fees for minor injuries, also for death of
Beneficiary and children of the Insured.
Good Openingt for Line Agent*
istern H.
>me Offi
d OfHce. Royal Bank BIdg.. Toronto
Electric Railway Chambers.
Winnipeg. Man.
Commercial Union Assurance Co.
Limited, of London, England
Capital KuUy Subscribed S 14.750,000
Capital Paid I'p 7,375,000
Total Annual Income Exceeds 75.000,000
Total Funds Kxceed 209,000,000
■IriKl OlUrr (anaillan Branrh :
COMMERCIAL UNION BUILDING - MONTREAL
H ALBERT J. KERR, Assistant .\Una..er. \V. S. JOPLING. MANAr.KR
Toronto Office - 49 Wellington Street East
GEO. R. HARGRAFT. General Agent for Toronto and County of York
pnniiiniiiiiiiiiiiiiiiiiDiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiw
I Automobile— 1 920— Season |
I Policies to cover ANY or ALL motoring risks 1
I ATTRACTIVE AGENCY CONTRACTS ■
British Empire Fire Underwriters
82-88 King Street East, Toronto
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GENERAL
ACCIDENT FIRE AND LIFE
ASSURANCE CORPORATION, LIMITED, OF PERTH, SCOTLAND
fBLBG HOWLAND. THOS. H. HALL.
Canadian Advisory Director Manager for Canada
Toronto Agents. E. L. McLBAN. LIMITED
nimnpu he
btCUKlT>^AND bEKVlCE
^riunniibii ui
J^ MEAD OFFICE - WINNIPEG.
FARMERS'
FIRE & HAIL INSURANCE COMPANY
FIRE, HAIL AND AUTOMOBILE INSURANCE
Head Office, CALGARY. Siskatcbewan Office, REGINA
M. P. JOHNSTON. Managing Director
46
THE MONETARY TIMES
Volume 66.
NEW INCORPORATIONS
CAXTON INSURANCE CO. OBTAINS LICENSE
London Motors, Ltd., London, .SI, 000,000— Lake Fortune
Mining Co., Ltd., Montreal, $1,000,000
The following is a list of companies recently incorporated
under Dominion charter, with head office and authorized
capital: —
Alberta and Arctic Transportation Co., Ltd., Toronto,
$750,000; Asiatic Petroleum Co. (Canada), Ltd., Montreal,
$1,000; Grills Tractors Corporation, Ltd., Toronto, $1.50,000;
Hoerner, Williamson and Co., Ltd., Montreal, $100,000; J.
Bourdeau and Son, Ltd., Montreal, $149,900; Universal Manu-
facturing and Development Co., Ltd., Toronto, $.50,000;
Flarelok Co., Ltd., Montreal, $200,000.
Provincial Charter
The following is a list of companies recently incorporated
under provincial charter: —
British Columbia Douglas Spur Shingle Co., Ltd., Van-
couvei-, $10,000; Original Auto Accessories Co., Ltd., Van-
couver, $20,000; Charles A. Goring and Co., Ltd., Vancouver,
$25,000; Pacific and Eastern Brokerage, Ltd., Vancouver,
$25,000; Victoria Talking Machine Co., Ltd., Vancouver, $50,-
000; Aircraft Oil Lands Exploration Co., Ltd., Vancouver,
$100,000; Winter Harbor Sea Products Co., Ltd., Quatsine,
$10,000; John P. Cameron, Ltd., Vancouver, $25,000; Calgary
Club, Ltd., Vancouver, $10,000; William Wright and Co., Ltd.,
West Burnaby, $10,000; Lillooet Soda Co., Ltd., Vancouver,
$500,000; Musicmaster Phonograph Co., Ltd., Vancouver,
$500,000; Metropolitan Bond and Investment Co., Ltd., Van-
couver, $10,000; J. M. Steves' Dairy, Ltd., Vancouver, $50,-
000; Stewai-t Coal Contracting Co., Ltd., Vancouver, $10,000;
Chillivan Petroleum and Refining Co., Ltd., Vancouver, $300,-
000; Betterton Bros., Ltd., Vancouver, $10,000.
Manitoba. — Bi-ookville Grainte Quarries, Ltd., Winnipeg,
$200,000; Bon-Ton Styles, Ltd., Winnipeg, $30,000; Osprey
Rural Credit Society, Neepawa, $20,000.
Ontario.— Gillespie Eden Corp., Ltd., Toronto, $40,000;
General Steel and Copper, Ltd., Toronto, $40,000; Fort Frances
Memorial Arena Co., Ltd., Fort Frances, $40,000; Paramount
Brantford Theatres, Ltd., Toronto, $650,000; Knights of Col-
umbus Building Association, of Windsor, Ltd., Windsor,
$150,000; Belle Isle Creamery, Ltd., Windsor, $60,000; Can-
ada Forwarding Co., Ltd., Port Arthur, $200,000; London
Motors, Ltd., London, $1,000,000; Jones' Music Store, Ltd.,
Hamilton, $40,000; S. H. Adman and Co., Ltd., Toronto, $40,-
000; Mclntyre, Morrison and Co., Ltd., Toronto, $40,000;
Penninsular Cord Tire and Rubber Co., Ltd., Hamilton, $1,-
000,000; Regent Tailors Manufacturers, Ltd., Toronto, $100,-
000; Colaway Motors, Ltd., Toronto, $150,000; Scottish Rite
Home, of Windsor, Ltd., Windsor, $100,000; Lakeview Land
Co., Ltd., Toronto, $40,000; Hellberg and Lofts, Ltd., Port
Arthur, $40,000; B. and M. Shoe and Slipper Co., Ltd., To-
ronto, $40,000; Canadian Cap Co., Ltd., Toronto, $50,000.
Quebec. — The Tivoli Amusement Co., Montreal, $20,000;
Adem Girard, Ltd., Quebec, $20,000; Used-Car Clearing
House, Ltd., Montreal, $40,000; Paulette Perfumery and
Chemical Co., Ltd., Montreal, $5,000; Excelsior Literary and
Social Club, Montreal, $10,000; River View Park Racing Club,
Hull, $49,000; Le Margasin d'Epargne, Ltd., Montreal, $20,-
000; Olivier Automobile Co., Ltd., Sherbrooke, $99,000; Ger-
main Lepine, Ltd., Quebec, $200,000; Les Conciergeries Mod-
ernes, Ltd., Montreal, $49,000; Montreal Ski Club Realty Co.,
Montreal, $30,000; Lake Fortune Mining Co., Ltd., Montreal,
$1,000,000; Sherbrooke Saguenay Mica, Ltd., Sherbrooke,
$500,000; Good Government Association of Greater Montreal,
Montreal, $20,000; Dancing Carnival, Ltd., Montreal, $14,000.
Saskatchewan. — Springside Building Co., Ltd., Spring-
'side, $5,000; Buffalo Coal and Supply Co., Ltd., Regina, $50,-
000; Calder Trading Co., Ltd., Calder, $25,000; Herbert Drug
Co., Ltd., Herbert, $10,000; G 11 Ranching Co., Ltd., Cecil,
$24,000; Gillespie-Mansell Motor Co., Ltd., Saskatoon, $50,000.
License has been issued by the Dominion government to
the Caxton Insurance Co. of London, Eng., authorizing the
company to transact in Canada the business of fire insurance.
The head oflice of the company is to be situated in the city
of Toronto, and A. H. C. Carson has been appointed chief
agent. To provide the necessary deposit the company has
deposited with the Bank of Montreal, London, Eng., £17,000,
British National war bonds, the accepted value of which is
$77,706. This company was incorporated in the year 1907
under the Companies Acts, 1862 to 1900.
The Security Mutual Casualty Co. has ceased to transact
business in Manitoba.
The Sun Life announce the following appointments in
connection with their agency department: D. L. Macauley,
inspector of foreign agencies; C. B. Buckley, general secre-
tary of agencies; C. A. Nourse, secretary of foreign agencies;
J. S. Ireland, supervisor of conservation and secretary of
Macaulay Club.
W. A. Hines, branch manager, Canada Life Assurance
Co., Brantford, has moved to Toronto and has become in-
spector for Ontario for the Travellers' Life Assurance Co.
of Canada. Geo. Nixon, Canada Life, was elected to the
presidency of the Hamilton Life Underwriters' Association
at their annual meeting, held January 19th.
A. G. Roberts, formerly superintendent of the Metropoli-
tan Life at Peterboro, Ont., has become head of the com-
pany's conservation department at Toronto.
L. Swartz has become district manager of the Ontario
Equitable Life and Accident Insurance Co. at Hamilton; he
was formerly district manager for the Mutual Life at Brock-
ville.
R. G. Grieve, formerly of McClory and Grieve, pro-
vincial managers at Edmonton for the Continental Life, has
moved to Victoria, B.C., and will represent the Continental
Life, with his headquarters at Vancouver.
Walter H. Armitage has been appointed city manager
for the Continental Life at Toronto. F. C. Alward and
Geo. Burdett have opened a special agency of the Continental
Life.
E. S. Miller, past-president of the L.U.A.C. and pro-
vincial manager for Saskatchewan for the Imperial Life As-
surance Co., has moved to Ottawa as branch manager. A. S.
Wickware has retired from the position of branch manager-.
Imperial Life, Ottawa, but will still keep his connection with
the company and represent them in that district.
T. A. Marsten, late of the Calgary branch of the Im-
perial Life, has biconie branch manager for Southern Saskat-
chewan for the Imperial with headquarters at Regina.
W. C. Goraon, Imperial Life, Moose Jaw, has become
branch manager for the northern section of Saskatchewan,
and will open offices at Saskatoon.
D. W. Mason, Metropolitan Life, Brantford, and secre-
tary of Brantford Life Underwriters' Association, has moved
to Hamilton, and will become superintendent at that city.
A. G. Bradley, who has been superintendent of the
Metropolitan Life at Hamilton, and president of the Hamil-
ton Life Underwriters' Association, has been moved to head
office in New Yoik, becoming a supervisor in the Canada, of
which Harry H. Kay is superintendent.
The North American Life Assurance Co. announces the
following field changes: —
R. D. Bell, for the past six years city manager at Winni-
peg, has been appointed to the position of district manager
of that branch. A. R. Piper of the Moose Jaw agency has
been appointed district manager of the Regina office to fill
a vacancy there. Following the resignation of W. S. New-
man, o' Moose Jaw, E. H. Rowse of that agency has been
' appointed Mr. Newman's successor as district manager. A
new district office has been opened at Owen Sound, Ont.,
and S. J. N. Glazier, formerly an inspector working under
head office, has received the appointment of district manager.
The new position of city manager at St. John, N.B., which
has been vacant for some time, has been filled in the person-
of W. K. Tibert.
February 11, 1921
THE MONETARY TIMES
47
Confederation Life
ASSOCIATION
INSURANCE IN FORCE - $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
" Solid as the Continent "
Throughout its entire history the North American Life
has lived up to its motto "Solid as theContinent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID AS THE CONTINENT"
HEAD OFFICE TORONTO
Important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE - WINNIPEG. MAN.
Assurances, New and Revived - - - 81,211,447.00
Premiums on same .... 43,890.00
Assurances in I-orce ... . 3,458,939.00
Total Premium Income - - 109,586.03
Policy Reserves . - - 211,497.00
Admitted Assets 296.430.62
Average Policy - - 2,237,50
Collected in cash per $1,000 insurance in force 31.75
For particulais of a good agency apply to
ADAM REID, Managing Director - Winnipeg.
Fifty-one Years of Steady Progress
One of tlie most brief yet impressive histories of Canadisn financial in
stitutions is contained in the annual record of The Mutual Life of Canada
The current issue will be ready in a few days. A copy will be sent toyou
on application. It contains liftyone successive summar ies, shewing in
the parallel columns the increase from year to year of the company's
various receipts, expenditures, etc. No other document could better
convey the idea of solid, uniform achievement, and the momentumof the
advance is now sreatcr than ever. The prospects are bright for a still
more rapid expansion within the next few years The assets of the com-
pany exceed $40.000 000. and the assurances in force h."lye reached
¥206.000.000. There is a gross surplus of more than five million dollars
over and above the amount necessary to guarantee all policies, so that
the position of the company, in spite of the strain of recent years, is one
of uncommon strength.
The Mutual Life Assurance Co. of Canada
Waterloo
Ontario
CO-OPERATIVE SERVICE
'TO Pohcyhiilucrs between Ihe Company and the Agents is the secret of our
success. Every representative is given the utmost assistance, but he
must look after our clients' micrests. During the last 21 years Tkc CoBtinotal
Life has built an enviable reputation lor prompt payment of claims.
Write for hmililct. ""•ur «e»t A<lverll«er»." I'hr Manager's positions in On-
tario :irplv wi^h ,-vfi->-fncus, stating experience, etc.. to ». .*. WK.iVKK.
KllsKTii MiliiTlilli'liilciil, al llrilft Oilier
THE CONTINENTAL LIFE INSURANCE CO.
Head Office
TORONTO. ONTARIO
ENDOWMENTS AT LIFE RATES
ISSUFU ONLY IIV
THE LONDON LIFE INSURANCE CO.
Head Office ... LONDON, CANADA
Profit Results in this Company 70% better than Estimates.
POLICIES ■GOOD AS GOLD."
CREATING CAPITAL
Life Insurance is, in effect, the creation of
capital by a stroke of the pen. There is no
substitute — no safer investment.
Life Insurance, inexpensive and profitable, is
available under the comprehensive range of
Policies issued by
THE GREAT-WEST LIFE ASSURANCE COMPANY
DEI'T. "l- "
HEAD OFFICE - - - WINNIPEG
Asl( for personal rates — stating age.
The Western Empire
Life Assurance Company
Head Ofiice : 701 Somerset Building, Winnipeg, Man.
Branch Oppicbs
SASKATOON CALOAMV EDMONTON
VANCOUVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office (or Canada, Hamilton, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost.
All Policies dividend paying and non-assessable.
NOR.MAN S. JONES. ManaBcr H. J. MA HONV. Asst Manascr
/^OMPANY controlling large volume
^^ of Insurance and well represented
all over the West, requires additional
general agencies for Fire, Casualty and
Hail Insurance Companies in Western
Provinces.
Apply Box 385, Monclarv Times. Toronto,
or Box 502 Monelarv Times,
1206 McArthur Building, Winnipeg.
THE MONETARY TIMES
Volume 66
News of Municipal Finance
Edmonton Proposes to Broaden its Basis of Taxation by Rental Assessment— Oak Bay Presents Good Financial
Statement— Manitoba Borrowings for Municipal Housini^: Plans will Approximate Three and a Half Millions
St. Thomas, Ont. — The city council has struck a tax rate
of 34 mills for 1921, which is the same as for 1920. The
assessment is about $1,500,000 higher this year.
Regina, Sask. — The total amount registered by the city
against borrowers from the cyclone loan fund was $337,082
at December 31, 1920, according to a report prepared by the
city commissioners and city treasui-er. Of this amount,
$109,991 represents outstanding principal not yet due under
the e.xtension agreements, the balance of $227,091 being
arrearages of principal and interest and borrowers' charges.
Winnipeg, Man. — The Winnipeg Electric Railway Com-
pany contributed to the city $1,547,024 between January 1,
1892, and December 31, 1920, under the terms of a by-law
by virtue of which the railway operates. The company pays
the city 5 per cent, of its gross earnings and $20 a car a year
for every car in operation. Car tax receipts aggregated
$92,100 and pei-centage earnings $1,454,924 since 1892.
Manitoba. — Transcona, East Kildonan and St. Vital have
asked loans of $100,000 each from the provincial government
for housing purposes. These appropriations will be decided
on at the coming session of the legislature. The sum of
$2,580,000 has been advanced by the province for municipal
housing purposes, and the government has offered Winnipeg
$500,000 of 1937 Victory bonds at par to finance its 1921
housing program in return for city of Winnipeg debentures.
If all appropriations are provided as asked, the total loaned
will be $3,458,000.
Canora, Sask. — Canora School District has paid in full
the debenture coupons which were in arrears for 1919 and
1920. The money became available when the town of Canora
paid to the school district at the order of the Local Govern-
ment Board the sum of $19,116, being its share of $50,000
held by the town as the proceeds of a certain compromise
arising out of the arrears of taxes with respect to Graham
interests in that vicinity. It is reported that the Union Bank,
which held a note against the school district for the sum of
$12,500, has been paid on such note the sum of $11,616,
leaving a balance of $884.
Edmonton, Alta. — Seeking a broader basis of taxation,
the city council is considering the inauguration of a rental
assessment. Mayor Duggan states that he will recommend
to the charter amendments committee the passage of a rental
tax, but is not inclined to favor exemptions for those paying
other taxes. The proposal at present is to impose a rental
tax on citizens who pay no taxes to the city in any other
way. It is felt that with an additional per capita tax it will
be a more equitable way of taking care of the city's burden.
If this course is adopted, states the mayor, the city will secure
from a large section of the community now exempt, a just
and proper contribution towards education and the city's
maintenance and upkeep for such public services as street
lighting, fire and police protection.
These services are now at the disposal of all classes of
the citizens without discrimination, and it is felt that the
burden of carrying them should be more evenly distributed.
.Although the proposed rental tax is in but a tentative stage
until it is thrashed out before the charter amendments com-
mittee, the plan is to impose it on a i-ate of 10 per cent, on
the rental premises of all persons living there. At the same
time, it is proposed that persons paying other taxes would
be entitled to a set-off, much in the same way as the income
tax is set against payments on land taxes.
Haileybury, Ont. — Owing to the delinquency of tax-
payers the municipality was unable to meet certain interest
payments on debentures last fall. The situation is partially
explained by the fact that large properties in the town are
held by non-resident owners. In the past these have been
prompt in meeting their tax payments. Last fall, however,
the general business depression had the effect of delaying
payments. Blany workmen who had been employed in the
mines of Cobalt had been forced into idleness through the
scarcity of power in that district, and the closing down of
mining operations in consequence. Tax payments were being
made by this section of the population with the utmost diffi-
culty.
Bondholders are assured that the stringency is only tem-
porary. The work of collecting taxes is being speeded up,
and as soon as the money is available it is applied in paying
off the arrears, which now amount to about $8,000. The total
debenture debt of Haileybury stands at $233,690, and the
interest on these amounts to about $32,000. During the year
three debentures have been retired, and for the present year
the annual payment will be reduced by $4,000. During the
next three years seven different debentures will be fully
paid off.
York County, Ont. — The aggregate assessment of York
County as arranged for county purposes by the equaliza-
tion committee which presented its report at the county coun-
cil last week, is $70,481,833. This represents a net increase
over the local assessments of $1,081,416. The assessment of
the townships was increased from $56,308,506 to $58,415,182,
while that of the villages and towns dropped from $13,091,-
911 to $12,066,651. Objection was taken to the decrease in
the assessment of the villages and towns when there was an
increase on the townships. It was stated that this was like
an unloading of some of the city dwellers' burdens on the
shoulders of the rural residents.
It was explained, however, that the principal increase
had been in three northern municipalities in which the per-
centage of assessment to ruling market values had been
particularly low, and the equalization had merely brought
thee districts up to the common level. The general rule
followed, it was pointed out, was an increase of fifteen per
cent, over last year's assessment. It was also pointed out
that some rural municipalities had benefitted having received
reductions while some urban centres had had their assess-
ments increased.
Oak Bay, B.C.— A good financial report is submitted by
S. J. Drake, reeve of the municipality. The surplus of
revenue over expenditure for the year just ended amounted
to $11,295, while the current account overdraft was reduced
from $53,122 to $37,603. The school levy was increased from
$35,060 to $47,612. Up to December' 31, 87.64 per cent,
of the year's taxes had been paid, while 79.71 per cent, of the
arrears had been collected. The usual tax sale was held, at
which all property on which taxes were delinquent up to
December 31, 1917, was put up.
All moneys available for sinking funds are invested in
British Columbia bonds and bonds guaranteed by the pro-
vince. The increased interest rate obtained over the amount
required by the various by-laws will eventually result in a
large sum beino- procured, states Reeve Drake's report. Vic-
tory bonds payable in Canadian funds were sold for $251.-
473, and this amount was invested in longer term British
Columbia bonds or bonds guaranteed by the province, with
interest and principal payable in New York, thus saving the
heavy exchange sharges on this proportion of the munici-
pality's debenture. The sinking funds required amount to
$409,751, while the funds actually on hand are $442,427.
This amount consists of $438,212 invested in provincial and
Dominion bonds and debentures, and $4,215 in the bank.
February 11, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
n01ISSERW00DA''°G>MPANY
INVe«TMCNT
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
STOCKS AND BONDS
Canadian, British and American Securities
Bought and Sold on all Principal Exchanges
Prioate win connectioru with New York and Toronto.
OSLER, HAMMOND & NANTON
WINNIPEG
NEW ISSUE
City of St. Catharines
6 ; COUPON BONDS
Maturities : 1922-1926
Principal and semi-annual interest (April 20
and October 20) payable in Toronto or St.
Catharines; denomination $500 and $1,000.
PRICE TO YIELD 6.40%
Harris, Forbes & Company
INCORPORATED
C. P. R. Building 21 St. John Street
TORONTO MONTREAL
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur Bldg., WINNIPEG, Canada
Member! o( Winnipeg Real Estate Exchange, Winnipeg Stock Exchange
c.
H.
BURGESS & CO.
Government and
Municipal Bonds
14
King
Street East
Toronto
WINSLOW & COMPANY
Stock and Bond Brokers
GOVERNMENT AND
MUNICIPAL BONDS
INDUSTRIAL SECURITIES
300 Nanton Building, Winnipeg
Exceptional —
— both for safety of principal and surety of
return is this
7% Canadian Industrial Bond
with a bonus of Common Stock payable in New
Vork funds.
Ask ui for full particulars
R. M. HEFFERNAN & CO., Limited
IMESTMEM BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
THE MONETARY TIMES
Government and Municipal Bond Market
Trend of Prices Shows no Departure From Recent Tendencies — Victories
Active and Steadier on Toronto Exchange — Toronto Calls for Tenders
on New Issue — British Columbia Cities Pay High for Their Loans
A NUMBER of Ontario municipal issues found their way
on the m&rket this week at rates which gave no indi-
cation of a departure from the trend of the past month or
two. A comparison of the present interest rates with a year
ago shows that the level is still considerably higher, but in
February, 1920, there were signs of stiffening, while now
the movement is in the opposite direction. The decline since
the latter part of 1920 has been quite pronounced, which can
be illustrated by a few typical inst&nces. In September last,
Saskatchewan paid 6.47 per cent, for a loan which was made
in Canada, while in January the province paid only 6.23 per
cent. Ontario paid 6.80 per cent, for its money in Decem-
ber, K'S compared with 6.28 per cent, just recently.
Of the municipalities a good example is Oshawa which
paid 6.94 per cent, in November, 6.80 per cent, in December
and 6.48 last month. York Township paid 7 per cent, for a
loan in December, compared with 6.40 per cent, about two
weeks ago. The amount of financing in other provinces has
not been sufficient to give a very definite idea a.s to the trend,
but the movement is unmistakably downward.
Western municipalities are still paying high for their
money, although Cornwallis, Man., got a loan on a 6V2 per
cent, basis just recently. The yield on two British Columbia
municipal issues, however, was high. Winnipeg, of coui-se,
being one of the bright spots in the western bond mai-ket,
received the best r&te the market could offer, the basis of
last week's loan being 6.19 per cent., which compares with
6.68 per cent in December.
There continues to be a ready absorption of investment
securities. For instance, last Tuesday, the turnover of Vic-
tory bonds on the Toronto Stock Exchange approximated a
million and a quarter dollars. The effect on prices was not
unusual, and all Victories are steady to stronger, while it is
expected that there will be a material appreciation in the
near future. The trend of prices in recent weeks is illus-
trated by the following figures: —
Control Last week. This week,
pi'ice. High. Low. High. Low.
1022 98 9914 98% 991/8 98y8
1927 97 99 98% 98% 98
1937 98 99% 98 99% 99%
1923 98 99 96% 98% 98
1933 96% 99 ■ 98 99 98%
1924 97 96% 96 96% 951/2
1934 93 ■ 95% 95 95% 95%
Coming Offerings
The following is a list of debentures offered for sale,
particulars of which have been given in this or previous
issues: —
Tenders
Borrower. Amount. Rate %■ Maturity. close.
Grantham Tp., Ont. $ 9,542 5% 20-years Feb. 14
Fredericton, N.B. . . . 120,000 5 Serials Feb. 15
Chilliwack, B.C 46,000 6 10-years Feb. 21
Dauphin S.D., Man. . -30,000 HM 20-years Feb. 25
Transcona, Man. . . . 48,000 6 20-years Feb. 28
Danville, Que 33,000 6 Various Mar. 7
Trail, B.C. 37,000 7 20-years Mar. 7
Drumheller, Alta. . . . 28,000 7 , 20-instal. Mar. 26
Grantham Tp., Ont. — Tenders will be received until Feb-
ruary 14, 1921, for the purchase of $9,542 5% per cent. 20-
year debentures. L. S. Bessey, St. Catharines.
Chilliwack, B.C. — Tenders will be received until February
21, 1921, for the purchase of $46,000 -6 per cent. 10-year de-
bentures. Chas. W. Webb, clerk imd treasurer.
Dauphin S.D., Man. — Tenders will be received until Feb-
ruary 25, 1921, for the purchase of $30,000 6% per cent. 20-
year debenture's. R. M. Cardiff, Dauphin, Man.
Transcona, Man.- — Tenders are being called for until Feb-
ruary 28, 1921, for the purchase of $48,000 6 per cent. 20-year
school debentures. J. M. Fowlis, Transcona, Man.
Trail, B.C.— Tenders will be received until March 7, 1921,
for the purchase of $37,000 7 per cent. 20-year waterworks
debentures. (See adyertisement elsewhere in this issue.)
Drumheller, Alta. — The municipal hospital board is call-
ing for tenders until March 26, 1921, for the purchase of
$28,000 7 per cent. 20-instalment debentures. (See advertise-
ment elsewhere in this issue.)
Danville, Que. — Tenders will be received up till March
7, 1921, for $18,000 6 per cent, debentures maturing May 1,
1940. Offers R.re also invited for $15,000 6 per cent, deben-
tures maturing Nov. 1, 1957. C. G. Brown, secretary-
treasurer.
Burnaby, B.C. — Debentures are being offered "over the
counter" to citizens at par and accrued interest. The securi-
ties, which bear 6 per cent, interest, are to be issued as fol-
lows: $60,000 for waterworks, maturing December 31, 1940;
$74,000 for schools, maturing December 31, 1934.
Debenture Notes
Gorrie, Ont. — Ratepayers have carried a by-law authoriz-
ing the borrowing of $12,000 for hydro-electric purposes.
Sherbrooke, Que. — The Roman Catholic School Commis-
sion of the municipality wishes to boi-row $100,000.
Fordwich, Ont. — Ratepayers have carried a by-law auth-
orizing a debenture issue of $12,000 for hydro-electric.
Peterboro, Ont. — A by-law authorizing the borrowing of
.$350,000 to be used in the purchase of a site and the erection
of a filtration plant, has been passed by the council.
Toronto, Ont. — Finance Commissioner Ross has stated
that he has definitely decided to issue bonds for the purchase
of the Toronto Railway Co. in Canada, and not to plf.'Ce them
in the United States market.
Montreal North, Que. — The municipality wishes to borrow
$50,000 for waterworks extension and to cover any loss which
would be suffered in selling the bonds. The interest rate will
not be more than 6 per cent.
Greater Winnipeg Water District, Man. — The board will
shortly consider a by-law authorizing the issue of $200,000
20-year debentures to be sold at a price yielding not more
than 61/2 per cent, to the purchasers.
Cap Madeline. Que. — The municipality has purchased
from La Compagnie d'Aqueduc Cap de la Madeline, the water
and sewer works at a price of $210,000. Payment will be
made by a debenture issue, bearing interest at 6 per cent.,
and maturing in 1927.
Saskatchewan. — The following is a list of authorizations
granted by the Local Government Board from January 15
to 29, 1921:—
Schools. — 10-years annuity, 8 per cent.: Crest, $5,000;
Cupar, $3,000; Meeting Lake, $2,500; Little Bridge, $4,600;
Harptree, $3,500; Pretty Valley, $5,000; Natika, $4,300. Ten
years 8 per cent, instalment, Bukowina; 4-years annuity 8
per cent.. Middle Lake.
Rural Telephones. — 15-years annuity, 8 per cent.: East-
mount, $8,000; South Church Bridge, $2,500; Dewar Lake,
$25,000; Round Plains, $6,500; Dinsmore, $1,500.
February 11, 1921
THE MONETARY TIMES
Provincial and Municipal Bonds
at Attractive Prices
Our February Bond List describes a
wider variety of Provincial and
Municipal Bonds than it has been
possible for us to offer for some time-
Interest rates are substantial, and the
wide range of maturities permits the
purchaser to invest his money for
whatever period of time may best
suit his purpose.
Copy gladly mailed upon request
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Enp
|Mft#;i>W«A».W!^P»^
^
mm^^^m4am.mmmmm
/ IMYISTWEHT- SCRYIK N^
You Can
Always
Sell Bonds
or securities through us.
We maintain eight offices thoroughly equipped
to sell, buy or exchange Government, Munici-
pal and Corporation Bonds and securities.
Send us your orders. We will execute them
with despatch and efficiency.
If you wish to read a stimulating review of
Canadian business conditions, write and ask
us to mail you this month'sj/nt'ps/mfnr Items.
Royal Securities
^ 'corporation
LIMITED
MONTREAL
TORONTO HALIFAX ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. Ent.
1
1^ t 'd 'i t 'i M^'^'^^'^^^^^^
W L. .McKI.NNON
DEA.N H PETTES
We Buy and Sell
VICTORY BONDS
W. L.
at Current Prices
McKINNON & CO.
Coveinmcnt and Municipal Bonds
McKINNON
BUILDING -:• TORONTO
Telephone Adelaide 3870
Selections from our
Current List
We own and offer, iubjecl lo prior sa
e and change in pricis :
Security
Maturity
Province of Ontario - 6
1st Feb. 1941
Province of Alberta - 6
15th Jan. 1936
Province of Alberta - 5
1st May 1925
Province of Saskatchewan 6
1st Feb. 1936
City of Niagara Falls, Ont. 5
1st Dec. 1922-29
Town of North Sidney, N.S. 4
1st Aug. 1921
Town of Glace Bay, N.S. 5
1st June 1923
East Kildonan Sch. D. Man. 6
15th May 1922-31
West KildonanSch. D.Man. 6
2nd July 1921-40
(Orders may be telephoned or telegraphed al our expense)
Write for complete
list.
W. A. MACKENZIE & CO.
CovcrnmenI aud Manic
Oal BonH,
Cnrporalwn Sccu
rilies
42 KING STREET
WEST
TORONTO
CANADA
52
THE MONETARY TIMES
Volume 66.
Bond Sales
Newmarket. Ont. — An issue of $20,000 6V2 per cent. 20-
year debentures has been taken up locally at par.
New Westminster, B.C.— The city has sold $35,000 6 per
cent, debentures, due December 1, 1939, to the Royal Finan-
cial Corporation, Ltd., at 87.06.
Ucssland. B.C.— Gillespie, Hart and Todd, Ltd., have pur-
chased $11,500 7 per cent. 20-yeav debentures, and are offer-
ing them at 102.69, to yield 6% per cent.
Gilbert Plains, R.M., Man.— The municipality has sold
$30,000 6 per cent. 30-instalment bonds, guaranteed by the
province of Manitoba, to AV. L. McKinnon and Co.
Cornwallis R.M., Man.— .\n issue of $100,000 SVi per cent.
30-year, good roads debentures has been sold to Unicume and
Burns, Bri;.ndon, Man., on a basis of about 61/2 per cent.
North Vancouver, B.C. — The Royal Financial Corpora-
tion, Ltd., has purchased $41,000 (3 per cent, debentures of the
district, due July 1, 1940, at a. price of 84.58, which is on
about a 7V2 per cent, basis.
Sarnia, Ont.— Tl)e Canadian Debentures Corporation has
purchased $164,747.68 debentures, bearing 6 and 6y2 per cent,
interest, and maturing in. 10 and 15 instalments, at & price
of 99.80, which is on about a 6.35 per cent, basis. Other ten-
ders received were; —
Wood, Gundy and Co 99-41
A. E. Ames and Co 98.91
Dominion Securities 98.841
R. C. Matthews and Co 98.716
Victoria, Ont.— The city has sold $50,000 GVi per cent,
debentures to Eastern Canadian interests, and h&s given an
option on another $50,000 to the same party. The money
will be used to finance the construction of the Johnson St.
bridge. Already $21,000 of these debentures had been sold
locally, sufficient to allow the carrying on of the work, and
it is the intention of the city to make further local sales,
although good offers from outside will receive consideration.
Port Colborne. Ont. — Paying a price of 101.418, which
is on a basis of about 6.35 per cent., the Dominion Securities
Corporation has been awarded $115,000 61/2 per cent. 30-in-
stalment debentures. Tenders were as follows: —
Dominion Securities Corp 101.418
Wood, Gundy and Co 101.08
C. H. Burgess and Co 100.87
Harris, Forbes and Co 100.72
Canadian Debentures Corp 100.67
A. E. Ames &nd Co 99.29
For half the issue: —
Dominion Securities Corp 101.487
C. H. Burgess and Co 101.06
Harris, Forbes and Co. Inc 100.89
Kitchener, Ont. — The Dominion Securities Corporation
has been awarded $20,000 6 per cent. 2-instalment deben-
tures at a price of 97.587, which is on about a 6.30 per cent,
basis. ' Other bids were: Harris, Forbes and Co., Inc., 97.578;
^milius Jarvis and Co., 97.06; C. H. Burgess and Co., 96.77;
Wood, Gundy and Co., 96.88; Macneill, Graham and Co.,
96.8.38; A. E. Ames and Co., 96.40; R. C. Matthews and Co.,
96.27; W. A. Mackenzie and Co., 95.11; United Financial Cor-
poration, Ltd., 96.17; Dyment, Anderson and Co., 96.07; Na-
tional City Co., Ltd., 96.52; Canadian Debentures Corpora-
tion, 96.784.
Simcoe, Ont. — Paying approximately 6.35 per cent, for
its money, the municipality has sold its $28,976 51/2 per cent.
30-instalment debentures to Wood, Gundy and Co. at a price
of 91.11. Other bids were: Dyment, Anderson and Co., 90.07;
A. E. Ames and Co., 90.60; Bell, Gouinlock and Co., 89.55;
^milius Jarvis and Co., 90.42; Harris, Forbes and Co., Inc.,
89.587; T. S. G. Pepler and Co., 89.40; C. H. Burgess and Co.,
90.114; National City Co., Ltd., 89.26; W. A. Mackenzie and
Co., 89.11; United Financial Corporation, Ltd., 89.62; R. C.
Matthews and Co., 89.10; Brent, Noxon and Co., 90.19; Cana-
dian Debentures Corporation, 89.80; Macneill, Graham and
Co., 89.93.
Brockville, Ont. — The Dominion Securities Corporation
has purchased $143,964 6 per cent. 10-instalment debentures
of the town at a price of 97.839, which is on about a 6.45 per
cent, basis. The following tenders were received: —
Dominion Securities Corp 97.839
A. E. Ames and Co 97.64
Harris, Forbes and Co., Inc 97.627
.lEmilius Jarvis and Co 97.58
C. H. Burgess and Co 97.43
Dyment, Anderson and Co 97.079
R. C. Matthews and Co 97.07
Turner, Spragge and Co 97.057
Canadian Debentures Corp 97.01
Wood, Gundy and Co 96.93
Brent, Noxon and Co ' 96.71
United Fihancial Corp., Ltd 96.34
Saskatchewan. — The following is a list of sales reported
by the Local Government Board from January 15 to 29,
1921:—
Schools, 8 per cent.— Pizarro, $1,000 10-years; W. Foster,
Marengo, and A. Tisdale, Loverna. Winter, $1,100 8-years;
J. B. Dearing, Senlac. Lake Valley, $16,000 20-years; Water-
man-Waterbury Mfg. Co., Regina. Neepawa, $4,200 15-years;
H. J. Birkett, Toronto. Findlater, $7,800 20-years, Khedive,
$7,000 15-years; Harris, Read and Co. Regina. Hoosier,
$1,100 10-years; Mrs. S. Doyle, Hoosier. Trombley, $1,200
10-years; Chas. Bouchier, Crystal Springs. Belleville, $1,500
20-years; Frank Hoard, Kennedy. Grain Belt, $4,275 10-
years; K. Julson, Gull Lake. Campbellville, $1,000 10-years;
W. H. Coak, Star City.
Rural Telephones, 15-years 8 per cent. — Shell River, $12,-
300, Marcelin, $8,000, Balgonie, $10,900; Harris, Read and
Co., Regina. East End, $12,500; T. P. Taylor, Regina. Bal-
gonia, $1,000; H. Langdale, Regina. Horse Lake, $7,300; R.
O. Berwick, Regina. West Hague, $8,000; E. T. Channell,
Prince Albert. Leask, $31,500; H. E. Shackleton, Prince
Albert. Spring-side, $1,000; A. Welby, Springside. Biggar-
Neola, $14,700, Spalding, $16,000, Naseby, $3,000;, T. W.
Brown, Saskatoon. Stockholm, $5,700, Quill Plains,' $8,024.
Ibstone, $4,600, Sylburn, $10,000, Storthoaks, $6,300; C. C.
Cross and Co., Regina. Northfield, $5,000; T. J. McVicar and
Co., Regina. North Springside, $8,500; Bank of Montreal,
Springside. Yellow Lake, $3,100; S. L. Ross, Regina. Lily-
holme, $7,950; S. L. Piatt, Regina. Fern Glen, $3,000; W.
Ward.
Village. — Buchanan, $800 10-years 8 per cent.; O. Voge,
Buchanan.
Toronto Calls for Tenders
The city of Toronto is calling for tenders up till Feb-
ruary 22, 1921, on $5,037,000 serial bonds, which are to be
issued on account of the acquisition and rehabilitation of the
Toronto Railway Company and for school pui-poses. The
securities bear interest at the rate of 6 per cent., and both
principal and interest is payable in Toronto. Offers must be
for the whole of the issue. For further particulars, see ad-
vei'tisement in this issue.
Ontario Municipalities Call Tenders
Oshawa, Ont., is calling for tenders until February 16,
1921, for $132,475.09 6 per cent. 30-year sewer debentures
and $48,864.05 6 per cent. 20-year sidewalk debentures. Prin-
cipal payable in equal annual instalments. F. E. Hare, deputy
treasurer.
Guelph, Ont., will receive offers up till February 18, 1921,
for $125,000 6 per cent. 20-year waterworks improvement
debentures and $50,000 6 per cent. 20-year sewerage exten-
sion debentures. H. J. B. Leadlay, treasurer.
The village of Point Edward, Ont., is offering up to Feb-
i-uary 23, 1921, $24,000 public school debentures, which bear-
interest at 7 per cent. D. Suhler, clerk.
February 11, 1921
THE MONETARY TI.MES
53
$25,000
CITY
OF HALIFAX,
5' % BONDS
N.S.
Due Jul)) hi.
953 Dcnomina
.ons, $1,000
Principal and semi-annual interest pay
able at Toronto. Montreal, Halifax
Price
: 92.85 and accrued interest |
Eastern
YIELDING G%
Limited
Securities Company,
ST. JOHN
N.B. HALIFAX, N.S. 1
Western Municipal & School
Q% Debentures
^ "^ TO YIELD
71%
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
INVITED
UNION TRUST BUILDING
WINNIPEG
^canadian
^pacific/
Bureau of
^-\ Canadian
Information
'T'HE Canadian Pa-
cific Railway,
through its Bureau
of Canadian Infor-
mation, will furnish
you with the latest reliable information on
every phase of industrial and agricultural
development in Canada. In the Reference Li-
braries maintained at Chicago, New York and
Montreal are complete data on natural resources,
climate, labor, transportation, business openings,
etc., in Canada. Additional data is constantly
being added.
No charge or obligation attaches to this service.
Business organizations are invited to make use
of it.
Canadian Pacific Railway
Department of Colonization and Development
I6S E. Ontario St.
Chicaj^o
335 Windsor Station
Montreal
1270 Broadway
New York
Moose Jaw, Saskatchewan
STOCKS AND BONDS
INSURANCE
FARM LANDS AND PROPERTY MANAGERS
KERN AGENCIES
CIIVIITED
Private Wirbs to WINNIPEG. CHICAGO. TORONTO,
MONTREAL AND NEW YORK
Investment Holders
Increase Your Income With Safety
We request you to send us. without obligation, a
list of your holdings.
We may be able to suggest a method of increasing
your income without decreasing your security.
Your Invcslmcnl Busincsi will he apprecialei!
Gillespie, Hart & Todd, Ltd.
Head Office
711 FORT STREET,
VICTORIA, B.C.
Branch
414 PENDER STREET,
VANCOUVER, B.C.
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE • REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. \S. MAHAN J.A. WBSTMAN
President M.inaging Director
MACAULAY & NICOLLSp
INSURANCE OF ALL CLASSES \l
ESTATES MANAGED |'
746 Hastings Street - VANCOUVER, B.C.
C H MACALLAY J P. NICOLLS. Not;iry Huhlic.
ACCOUNT BOOKS
Loose Leaf Ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
THE MONETARY TIMES
Volume 6b.
CORPORATION SECURITIES MARKET
Stock Markets Reflect no New Constructive Developments —
Spanish River Paper Bonds are Offered to Public —
Mount Royal Hotel Issue
THERE were no new developments to alter the tone of the
Canadian stock markets during- the past week, and, with
the exception of one or two issues, the exchanges were void
of interest. Canada Steamships took a sharp drop on the
report of a cut in dividend, but evidently there was very
little foundation to the rumour, and the price started to pick
up. This little incident, however, created a general disturb-
ance, indicating how sensitive the market is and the uncer-
tainty of conditions.
Trading figures show that the turnover of listed stocks
in Montreal was only .30,1.57 shares, as compared with 49,272
in the previous week, while the turnover of listed shares in
Toronto was 12,939, as against 13,102 previously. It was well
that very few stocks came out, as the public shows no very
great desire to participate in trading in speculative issues
at the present time. Bond trading in Montreal was lower,
being .$1,563,800, compared with $1,900,360 previously, while
in Toronto there was also a falling off from $2,417,8.50 to
$2,269,150.
Pulp and Paper Securities
Pulp and paper securities are attracting a goood deal of
attention at the present time in view of the movement of
prices on the stock exchange and of the new financing which
is being arranged. In the opinion of a prominent investment
house, which has speicalized in such securities for a number
of years past, both here and in the United States, the pulp
and paper industry is one of the most stable and essential,
because the use of paper is increasing directly with the
growth of population and with the extension of education.
With reference to the newsprint situation, it is further stated
that, though it would be unreasonable and undesirable to
expect a continuation of the acute shortage of this product
which has existed for so many months, the paper companies
are fortunate in being assured of a steady demand for their
product, even in these times of depression. They have_ no
surplus stocks to be worked off at a loss in order to adjust
themselves to new market conditions, and their earnings
have been and continue to be so good that they can look for-
ward without misgiving to a possible curtailment in the use
of paper if advertising drops back from the high point of last
year.
The principal announcement this week of new financing
is the offering of $3,000,000 8 per cent. 20-year general mort-
gage bonds of the Spanish River Pulp and Paper Mills, Ltd.,
by the Royal Securities Corporation at 99 and interest to
yield 8.10 per cent. The Spanish River company is one of
the largest manufacturers of newsprint in this country, and
within the past few years has worked itself into a very
strong position. Some interesting facts in this regard will
be found advertised elsewhere in this issue.
This week N. A. MacDonald and Company, Montreal
Toronto and Ottawa, are making public offering of the $4,-
000,000 8 per cent, convertible deben1>ures of the Mount Royal
Hotel Company, particulars of which have already been fully
outlined in these columns. The securities are being sold at
par and interest, with a bonus of 40 per cent, of common
stock. The Mount Royal Hotel will be operated as a link in
the chain of twenty hotels in Canada and the United States,
which are managed by the United Hotels Company of
America. The hotel is being constructed to meet the urgent
demand on the part of residents, transportation and other
business interests of Montreal, commercial travellers and
tourists.
The capital of the company, which consists of 8 per cent,
debentures to be converted into 8 per cent, cumulative pre-
ferred stock, $4,000,000, authorized and issued; common stock, ■
par value $100, $5,000,000 authorized and issued; S per cent,
preferred stock, $5,000,000 authorized, of which $4,000,000 is
to be used in payment of a like amount of debentures and
$1,000,000 to remain in the treasury of the company, is to
be subject to a first mortgage or bond issue of $3,000,000,
to be increased to $4,000,000 on completion of a 400-room
addition. It is understood that the $3,000,000 bond issue has
been disposed of, but particulars of the issue are not available.
Capital Increases
The Canadian Pulpwood Corporation, Limited, has been
authorized to increase its capital from $1,000,000 to $1,500,-
000 by the issue of 5,000 shares of $100 each.
Benson and Hedges (Canada), Ltd., Montreal, cigarette
manufacturers, have been authorized to increase their capital
fi-om $500,000 to $1,500,000 by the creation of 10,000 shares
of $100 each.
Penman's, Limited, have declared a bonus of 2 per cent,
on the common stock, payable on February 28 to shareholders
of record February 16. The common stock is on an 8 per cent,
basis, and a similar bonus was paid in February, 1920, while
bonuses of 1 per cent, were paid in 1918 and 1917.
Application has been made to the Toronto Stock Ex-
change for the right to trade in the securities of the Imperial
Tobacco Company of Canada in the unlisted department. The
company's general office is at Montreal, but much of its stock
is said to be held in Great Britain. The common stock out-
standing amounts to $27,002,500, of $5 par value, and the
preferred stock outstanding is $8,030,000, par value £1. The
dividend on common is 6, plus 1, and on preferred 6 per cent,
cumulative. The common stock has been selling around par
on the curb and the preferred is quoted at $4.50.
The Felger Livestock and Grain, Ltd., is offering for
public subscription at par $250,000 of its notes, made up as
follows: 300 notes of $250 each, 1,000 notes of $100 each,
800 notes of $50 each and 1,400 notes of $25 each. They all
mature April 30, 1931, and interest is payable at 8 per cent,
on April 30 and October 30 in Lethbridge. The company was
incorporated under an Alberta charter in December with an
authorized capital of $250,000, of which $5,000 is subscribed,
and is to be paid up by May 1. It will engage in farming and
raising live stock, and the notes are to be secured by the
latter, the trust deed requiring that 80 per cent, of the pro-
ceeds be invested -n this way.
UNLISTED SECURITIES
& Co., Toronto
Alta. Pac. Grain... com.
" , . . -pref.
American Sales Book6's.
Brandr'm-H'ndes'n.com.
British Amer. Assurance
Britisli American Oil. ...
Burns, P. 1st Mtge. 6's..
Can. Machinery .. . com.
6's.
Canada MortKage.
Can. Oil com.
Can. Westinghouse
Can. Woollens pref.
Cockshutt Plow .com.
" .7% pref.
CoUingwoodShipb'dg.B's
Crown Life Insurance...
Cuban Can. Sugar, pref.
Dav
i.Wil
Dominion Fire
■l.Foun.& Steel.com.
Pom. Irons Steel 5s 1939
Dom. Power .pfd.
DunlopTire pref.
6's.
Eastern Car 6's
Eastern Theatres, com.
Goodyear Tire., pref.. . .
Harris Abattoir 6's
ne Bank
erialOil
King Edward Hotel com.
Bid
Ask
90
98.50
40
48
S3
65
71
S4
88.75
SS
92
90
97.50
M
90
11
16
65
75
89
95
9S.50
103.50
108
lis
73
73.50
78
93
96.50
170
200
2.25
. Powe
Mercantile Trii
Merchants Fire
Mexican Nc
Morrow Screw 6*s
Murray- Kay pfd
National Life
Neilson.Wm 6's
North Star Oil com
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Page Hersey pref.
Peoples Loan & Savings.
J^iordon. .com. (newstk.)
•• ..pfd.
R, Simpson... pfd.
Bid
Ask
98
65
74
22
30
90
100
30
9.25
12.50
84
88
60
68
150
84
91 ,50
4.50
5
73
80.50
93
96.50
85
70
■24
311
79
SJ
76
81
Sterling Bank
Sterling Coal com.
Sugar 6's..
Tor
Paper
Toronto Power. 5's (1924>
Trust &■ Guar
United Cigar Stores pref.
Western Assurance.. ....
Western Can. Pulp.com.
Western Can- Pow. 5's..
Western Grocers pfd.
WhalenPulp com
'63
February 11, 1921
THE MONETARY TIMES
55
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Year
7 to 7% %
We Specially RecommenJ these DonJi as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto BIdg. Royal Bank Chambers
EDMONTON CALGARY
The Bond House of British Columbia
WE ARE IN THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C. Victoria, B.C.
AGENCY WANTED
BRYCE & COMPANY LIMITED
MANUFACTURERS' AGENTS
WINNIPEG, MAN.
Calling on the Dry Goods and Men's Furnishing Trade
of Western Canada (rom Port Arthur to Victoria, having
been agents for the Williams, Greene & Rome Co., Ltd.,
of Kitchener, Ontario, for over thirty years and discon-
tinuing this Agency on account of that^ business being
sold to Cluett, Peabody & Co., Limited.
DESIRE TO SECURE
a good Agency to replace same. Agencies to
the Wholesale Dry Goods trade are of interest.
RESIDENT SALESMEN IN
WINNIPEG - REGINA - CALGARY - VANCOUVER
8 Sels of Samples required.
Present Agents for
Penmans Limited. Paris, Ont. (The retail trade only.)
Watson Manufacturing Co., Limited, Brantford, Ont.
The Central Agency Limited. Montreal. Quebec.
If interested, and for full particulars, write
BRYCE & COMPANY LIMITED
Box 238 - WINNIPEG, MAN.
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches— SASKATOON AND CALGARY.
Canadian ManaRers
iNVEsraBNT Corporation uf Canada, Ltd.
London OfRce: < Oreat Winctiester St., B.C.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
LOUGHEED & TAYLOR, Limited
l\ \ESTME\T SECiRiriES
210 Eighth Avenue West
CALGARY
ALBERTA
P. M. LIDDELL & COMPANY
Invesirtient Banl(ers. Fiscal Agents
Insurance Brokers
826-7-8 ROGERS BUILDING, VANCOUVER, B.C.
((
Th
e
Monetary
T
imes"
will be sent you for four mor
our TRIAL SUBSCRIPTlOrV p
$ l.OO
ths
Ian
on
(or
Jl
ist sen
d a
dollar bill and your na
me
and address.
Vancouver District Property
Expert Estate Agents and Managers
Property Bought and Sold, Valued. Rented and
FJeporled on. Correspondence invited.
WAGHORN GWYNN Co., Ltd. v.nco».e.
X
56
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
.UOXTItKAL— Week Knded Feb. 9Hi. I
1 Kigures supplied by Burnett & Co.) I
Slocks
Sales
AbitibiP.SP 37N
•■ pfd. 25
Asbestos Corp 36
pfd. I S-^
Amcs-Holdcn pfd.
Atlantic Sugar
Bell Telephone
Brazilian T.L.& Power
B.C. Fish .
Brompton Pulp & P- ■
Canada Cement .......
...pfd.
Can. Con -■ I
Canadian Cottons
" ...pfd.'
Canadian Car ■•■i
... .pfd.
Canadian Gen. Elec...
Can. Steamship
■' " pfd.
■• ■■ deb.
Con. Mining & Smel...
Crown Reserve i
Del Rys
Dom. Canners
pfd.;
Dom. Coal pfd.
Dominion Bridge
Dom. Iron pfd.
1030
17J8
.S75
■ss
•I
25
"40
331
104
4398
5115
6,i00
461
6,S0
S7
191
Don
mil
inion Glass
" ...pfd. I
. Steel Corp
•■ ..pfd.
inionTextile
jis Traction . .pfd.
105J
39i
Kaministiqua ...
Lake of the Woods
Laurentide
LyallCons
.Vlacdonald Co
Mackav
.Mont. Cottons
" ..Deb.
Telegraph...
National Breweries..
N. S. Steel pfd.
■Ogilvie Flour Mills
■■ pfd.
Ont. Steel Prod
•Ottawa
Penmans
Prov. Paper
Quebec Ry. L. H.&P..
Riordan Pulp & P
.pfd.
Scotia
St. Lawrence Fl. Mills.
" ..pfd.
Sherwin Williams ....
Shawinigan W. & P ■ • •
Spanish River ■ . ■
pfd
Steel Co. of Canada...
' " ' pfd
Toronto Ry
Tooke Bros
WabassoCofn ......
Wayagamack P. & P.
Winnipeg Ry
iennk»
Commerce
Hochelaga
Imperial
.Merchants
Molsons
Montreal
Nationale
Nova Scotia
Royal-
Standard
Toronto
Union
Bonds
Asbestos Corp...
Bell Telephone Co
Can. Cement
rnn Rtihher - ^-^O"
Cedars Rapids Mfg.... I WHO
g^nt.^^e;s 1B.2 .so.,
■• •■ Sept.B's. 192,1 7000
Dom.Can.W.Loan.l925 15801
774
77^ I 77i
98 I
95
251
25S
89j 89]
83 J I 83 i
.1924
1934.
1922.
1927.
1937.
1923.
1933.
'88407
229142
183460
70653
32013
99880
15S499
M«MTREAl-CoM«H<(eti.
IConds
Dom Cottons
Dom. Coal
Dom. Iron
Dom. Steel
Dom. Textile
Luke of Woods
Lyall
Mont. Power
National Breweries . . .
Ogilvie Flour
Penmans
Price Bros
Quebec Ry.L.H.&P...
Ri'ordon
Sherwin-Williams.
Steel Co. of Canada. . .
VVaba..so Cotton
Wayagamack P. & P. .
Winnipeg Elec
TOItOXTO— Week Ended Feb. !>lli.
Atlantic Sugar
Abil
Open
lona
Bell Telephone
Brazilian Traction. ...
Burt. F. N
•' pfd.
B.C. Fish
Can. Bread pfd.
Can. Car &F pfd.
Canada Cement
Canners
pfd,
Canadian P:<ciHc K. . .
Can. Gen. Elec
...pfd,
Can. Salt
Canada Steamship
pfd
City Dairy pfd
Coniagas
Con. Gas
Crows -Nest ,
Dome i la|5
Duluth
Dom. Iron
Loco
Mackay Compan
1700
.pfd.
Maple Leaf
.pfd.i
N. S. Steel .
Nipissing. . .
Penn-.ans. ..
Porto Rico .
H.gh
73i
Sh. Wheat.
Smelters .
Spanish Ri'
Stan.Chem
Steel Corp
Steel Company
92J i »2J
97i ! 97i
Toronto Ry
Tucketls
Tooke Bros
Twin City
Winnipeg Eleo..
Baiik.s
Commerce
Dominion
Hamilton
Imperial
Merchants
Royal
Standard
Toronto
Uni<
TOUONTO— Coftiinued
War lioans
Dom. Can.W.Loan. 1925
1931
1937
Victory Loan 1922
■1923
1927
1937
1933
1934
1924
69i 70
127 f 127
20J
Loan and Trust
Col.Inv
Can. Land ■
Can. Perm
Lon. & Can
To onto Gen. Trusts..
Itonds
Can. Bread
Rio. Jan. T.. L. & P..
Sao Paulo
Steel of Canada
6000
6000
26500
1000
Sales
Open
High
5000
94J
94
13300
944
94
47500
978
97
107150
99
99
57950
988
98
22000
981
99}
98g
99200C
991
18335C
98}
99
1633.5,SC
9.=i4
9.5!S
1666.50
9fi}
96^
941
94*
975
WINNIPEB— Week ended l'el>. .'>lli.
511.50
16440
6700
1925
1927 1 14470
•• 1937..
" 1933..
■■ 19J4.
)an 193r. ...
•■ 1937 . . -
" 1925 ...
Investment,
rn Trusts. .
rd Trusts...
17350
38180
97100
!«EW KOKK.— Week ended Feb
.5111.
Stocks
Sales
Open
High
117i
Low
1141
Close
Canadian Pacific...
12300
117i
115i
40
Nova Scotia S. &Coal.
Granby Consolidated . .
Bonds
Dom. of Can. 5% 1921
5i% 1921
5% 1926
5i% 1929
5% 1931
Sew Vorft Curd-
Canada Copper.
100
300
68000
94000
3000
134000
240P0
35
23
35
23
998
99J
90
93
87}
35
228
99i
99j
884
86}
35
228
99*
99f
89*
91
87i
LONDON, Eng.— Week ended Jan. 2»nd.
liov't. all Mnu.
Alberta 4% debs
Canada. 3*% 193050..
■• .... 4% 1940.60
'■ .... 4i% 1920-25
B.C. 3%
.■• 4i%
Calgary 4 J deb...
Edmonton .5% bds. 23-53
5%
Nfld.3i%bds
■• 4% 1895
Manitoba 4% deb. 1949
4% 1928
Montreal 4«% Reg —
3%
4% cons. deb.
Ontario 3J% Reg...
Quebec 3%
■■ 4% 1888....
Regina 5% deb I
Toronto 4j% 1948
Victoria 3»% 1921-6 ...
3J% 1923 I
4% cons
SJ%ions..
Vancouver 44%
Wmnipeg 44% 1943.63
4% cons. 1940
Kallways
Can. Nor. 4% deb. 1939
•■ " Ont. 34% db. '38
" Pac.4%deb.
Can. Pac
■• 4% deb.
•■ 4% pfd.
G.T.P. Br. 4% bd. 1939.
G.T.P.3%bds
G.T.P. 4% 1955
Gr. Trunk.... 4% guar.
Gr.Trunk5% 1st. pfd..
Gr. Trunk 5% 2nd pfd..
Gr. Trunk 4% 3rd pfd..
Gr. Trunk 4% cons
Gr. Tr. West. 4% bds..
Ont. & Quebec 5% deb.
P. Gt. East. 4^% deb. '42
Ind.. Flu., VXv.
Can. Car 7% pfd
Can. Cement 6% bds..
Can. West Lumber 5'
Kaministiquia P.5% b
CaA. Gen. Elec
Shawinigan Water..
Can. Bk. of Commert
Bank Montreal
604
68}
1524
February 11, 1P21
THE MONETARY TIMES
THE DOMINION LIFE ASSURANCE C03IPANY
The thirty-second annual report of the Dominion Life
Assurance Company, which appears in condensed foi-m in
another column, and was presented to the members of the
company at its annual meeting on February 11, is, in all
essential respects, the best in its history. The new business
written, amounting to $15,756,762, is 44.4 per cent, of the
amount in force at the beginning of the year, and the increase
for the year shows $9,878,820, which is a gain of 28 per cent.
The gross assets of the company increased by $703,488
10 $6,167,935. Death claims were only 46 per cent, of the
mortality provided for, and the cash profits distributed to
liolicyholders were $139,890.
BEST YEAR FOR CONTINENTAL LIFE
Nineteen-twenty was the most satisfactory year from
every standpoint that the Continetal Life Insurance Company
has ever experienced, at least that is the indication from
the annual statement, which has just made its appearance.
The applications for new insurance and revival of policies
exceeded the sum of $5,000,000, while the insurance issued
and revived amounted to $4,897,164, which is an increase of
20 per cent., as compared with the amount issued for the
previous year. The amount paid for death claims, matured
endowments, dividends on policies, annuitants, etc., is $237,-
473, as against $249,746 for 1919.
Reserves for the protection of policyholders have been
increased by the sum of $232,835, and now amount to $2,666,-
208. In addition, there has been added to the surplus for
their benefit $96,981, making a total surplus for the protection
of policyholders of $315,869. Net premium income and income
from other sources amounted to $731,473 during the year,
compared with $554,673 previously.
The following table is conclusive evidence of the pro-
cess of the company since 1900: —
1920. 1910. 1900.
.\et premium income $ 587,918 $ 208,028 $ 15,050
Other income 143,555 .50,538 1,612
Death claims accrued 76,558 12,5Q0
Total assets '. . . 3,043,149 1,084,822 79,925
Resei-ves 2,666,208 831,820 17,321
Insurance in force 17,553,656 6,367,883 705,200
ONTARIO LOAN COMPLETES FIFTIETH YEAR
Very profitable was the experience of the Ontario Loan
and Debenture Co., London, Ont., in its fiftieth year of
operation. Net earnings for 1920 were $275,893, to which
was added $23,000, being the surplus from the sale of the
old office building, and $32,623 brought forward from last
year, leaving a balance for distribution of $335,517, com-
pared with $314,779 in 1919. In addition to the regular
dividend of 9 per cent., a bonus of one per cent, was paid to
shareliolders, and $100,000 was transferred to the reserve
fund, bringing that account up to 128^2 per cent, of the
paid-up capital of $1,750,000.
The balance sheet shows that mortgage loans were
lower, being $4,619,201, as against $4,759,917, but 'invest-
ments in bonds and debentures increased fi-om $2,319,634 to
$2,740,798. Latterly, however, mortgage loans are offering
in larger volume at fair rates, and the company is again
turning its attention to this class of security. Payments of
both principal and interest were .well met during the year,
according to the report. Under the liabilities to the public,
total outstanding debentures are slightly lower at $2,604,-
309. Sterling debentures show a reduction of about $265,000,
but this amount was almost offset by an increase in cur-
rency debentures. Deposits have increased from $900,872 to
$1,037,785. A full report of the company's operations will
be found elsewhere in this issue.
PORTAGE LA PRAlRIE FARMERS' MUTUAL
New business amounting to $27,186,910 was written by
the Portage La Prairie Farmers' Mutual Fire Insurance Co.
in 1920, as compared with $22,134,64? in 1919. Loss claims
were $128,092, compared with ,'pl37,508 in the previous year.
At the close of thii-ty-seven ye&rs in the mutual fire busi-
ness in the west, the company had $63,153,907 of assurances
in force, being an increase of $11,597,564 for the year. Total
assets also showed a substantial increase from $910,616 to
$1,024,708.
Officers of the company now are: E. H. Muir, president;
S. Whitaker, manager a^nd secretary; A. H. Thorpe, treasurer.
Dkbenttjres for Sale
CITY OF TRAIL, B.C.
Sealed tenders, marked "Tender on Debentures,"' will be
received by the undersigned up to 8 p.m. on Monday,
March 7th, 1921, for $37,000 7',; 20-years straight-term
waterworks debentures. Denomination, $500.00. Interest pay-
able semi-annually. Principal and interest payable in Trail,
Toronto or New Y'ork, at option of holder. Interest coupons
attached.
WM. E. B. MONYPENNY,
415 City Clerk.
CITY OF TORONTO
$5,037,000 SERIAL BONDS
Sealed tendei-s, endorsed "Tender for City of Toronto
Bonds," addressed to Thomas L. Church, Esq., K.C., Mayor
and Chairman of the Board of Control, will be received by
the undersigned until 12 o'clock noon, Tuesday, 22nd Feb-
ruary, 1921, for the purchase of $2,500,000 serial bonds, issued
on account of the acquisition and rehabilitation of the To-
ronto Railway Company, also $2,537,000 serial bonds issued
for school purposes.
Full details as to the purposes for which the bonds an.'
issued, and amounts maturing annually, together with finan-
cial statement of the City, will be furnished on application.
The legality of the issues has been approved by Mr. J. B.
Clarke, K.C., Toronto, and his favorable opinion will be
engraved on each bond.
The bonds are an obligation of the City at large, are
issued in coupon form, with provision for registration of
principal, and are of the denomination of $1,000.
They are payable both as to principal and interest in
Toronto, and carry interest at the rate of 6''( per annum,
payable half-yearly.
Engraved bonds will be i-eady for delivei-y on or about
March 7th, 1921. Delivery and payment, with acci-ued in-
terest, are to be made at the office of the undersigned.
Tenders will not be received for any part, but must be
for the entire issue.
A certified cheque, payable to the undersigned, for 2',y:
of the par value of the bonds tendered, must accompany the
tender.
Tenders specifying for bonds other than those herein
described, or containing conditions varying- from the above,
will not be considered.
The right is reserved to reject any or all proposals.
GEO. H. ROSS,
Commissioner of Finance.
Treasury Department,
rity nail, Toronto, Canada, February 10th, 1921. 416
58
THE MONETARY TIMES
Volume 6G.
Corporation Finance
Good Year for William A. Rojfers — British Columbia Electric Railway Position Improved—
Goodyear Tire Statement Contains Evidences of Expansion — Traction Companies Earnings Increase
Brazilian Traction, Light and Power Company. — During
the current year of 1920 gross earnings of the company
amounted to 184,906,000 milreis, an increase of 21,832,000
milreis over the previous year. Aggregate net earnings were
()9,991,000 milreis, being an advance of 11,568,000 milreis.
The net earnings for December last, which totalled 5,683,000
milreis, showed an increase of 795,000 milreis, which was the
second smallest total for the last half of the year, and only
three months of the year, March, April and July, provided
.smaller net increases.
Winnipeg Electric Railway Company. — The company's
properties, exclusive of subsidiary lines, are valued at $17,-
262,832, according to the final figures in the public utility
commissioner's appraisal. Including subsidiaries, the valua-
tion is placed at $20,518,718, of which $560,701 represents
the Suburban Rapid Transit Railway, $1,356,523 the Win-
nipeg, Selkirk and Lake Winnipeg Railway, $979,951 the Win-
nipeg River power, $292,787 the Winnipeg River Railway
and $65,923 the Gas Stove Company, Limited. To reproduce
the entire system new would cost $24,369,431, of which the
cost to reproduce new the Winnipeg Electric Railway would
be $20,733,023, according to the statement.
North American Pulp and Paper Trust.— At a meeting
in Montreal this week of shareholders of the North American
Pulp and Paper Trust it was proposed to change the original
offer for the sale or exchange of shares and to reduce the
shares of the Saguenay Pulp and Paper Company to $5 par
value, which make an even exchange of the two stocks pos-
sible. The original offer was $6 per share in cash (United
States funds), or an exchange of existing shares for Sague-
nay shares on the basis approximately of one share preferred
and four of common for each ten trust shares. The change
would give two shares of preferred and eight of Saguenay
common for the same ten shares.
The meeting gave the board powers to abolish the North
American Pulp and Paper Trust. Further action was delayed
to await the annual report of the Saguenay Company, which,
it was stated, would show a surplus of $1,500,000 after de-
preciation, bond interest, etc.
Montreal Tramways Company. — Official figures of the
certified account, prepared by the city accountant, and made
public by the Administrative Commission this week, reaffirms
that the company owes the city of Montreal $1,500,000 on
the new contract. The Administrative Commission also gave
out for publication a complete account of the indebtedness
of the company to the city up to February, 1921, amounting
to $2,140,723. In addition to the $1,500,000 first refei-red to,
the city authorities also claim the company owes to the city
$227,152 on the old contract, making a total of $1,727,152 under
the head of what the city accountant classifies as percentage
on earnings.
The Administrative Commission acknowledged this week
that the city had received a cheque from the company for
$61,090 in part payment of the amount the company owes
the city by the new contract.
British Columbia Electric Railway. — An improved con-
dition was reported at the annual meeting of the company,
held recently in London. The address of the chairman of the
company, R. M. Horne-Payne, stated that gross receipts were
the largest in the history of the company, and, despite in-
creased costs of operation, dividends were £4 13s. per cent,
on preferred and £6 4s. per cent, on deferred ordinary stock.
He said that pre-war returns were not sufficient to attract
capital for the development of public utilities such as theirs,
and he asked for the opportunity to operate under reasonable
conditions. Arrangements have been completed whereby the
majority of the share capital of the Western Power Company
of Canada will be secured, thus giving the company owner-
ship of a large source of additional power. There had been
a continued improvement in business, and during the year
the company carried 66,411,030 passengers and 430,921 tons
of freight, as compared with 53,326,288 passengers and 331,-
794 tons of freight in the previous year.
As a result of the increased fares and rates which the
company was permitted to charge, the profits for the year
amounted to $590,072, as compared with $519,364 for the
preceding twelve months. Allowance for depreciation ab-
sorbed $164,745, as against $153,545, and there was an addi-
tional liability for the year under review in the form of a
corporation's profits tax of. $13,000, leaving the net profit at
$412,337, compared with $363,019.
Goodyear Tire and Rubber Company of Canada. — Evi-
dences of substantial expansion are shown in the statement
of the company for the year ended September 30, 1920. Pro-
perty and plant of the company have almost doubled in value,
while inventories and accounts receivable show large in-
creases. The capital of the company has largely increased
as the result of the new stock issues during the year. Re-
serves are somewhat higher, but the surplus profits have been
drawn on rather heavily. The principal changes in the bal-
ance sheet follow: —
Assets. 1920. 1919.
Plant and property $6,199,665 $3,118,011
Inventories 7,150,945 3,481,185
Advances 92,528 41,760
Accounts receivable 4,817,535 2,890,018
Cash 130,397 1,180,391
Liabilities —
Preferred stock 4,500,000 1,452,700
Common stock 5,332,000 888,500
Notes and accounts payable 5,905,967 3,609,763
Accrued government war tax 950,000 1,250,000
Resei-ves 1,341,062 1,138,514
Surplus 1,071,725 2,507,788
Total assets at the end of the year were $19,100,754, as
compared with $10,891,390 as shown previously.
Wm. A. Rogers, Ltd. — A year of prosperity, both from
the business and profits standpoint, is reported by the com-
pany for 1920. Profits were $572,536, compared with $526,-
382. This, with balance forward, made $810,927 available for
distribution. The sum of $169,468 was transferred to realty
and plant reserve, or an advance over last year by about
$8,000, while the reserve account was increased by $50,000,
as against $70,000 a year ago.
"Business fell away toward the end of the year and is
quiet at the opening of 1921," says S. J. Moore, the president,
in his i-eport to the shareholders. "We are seeing evidences
of impi'ovement, howevei-, and look forward to a gradual
restoration of confidence. It is our expectation that the cur-
tailment that is likely to occur in the early part of 1921 will
be made up in the later months, and that the year, as a whole,
will yield a satisfactory and profitable volume. The inven-
tories on hand have been written down to present replace-
ment values, and the shrinkage has been charged off in the
year's expenses. The inventories are in excellent condition,
both as to character and prices.
Though inventories have been written down, the mer-
chandise in the assets column amounts to $1,614,916, against
$1,328,468 a year ago. Total current assets are $2,425,085.
compared with $2,166,958. Current liabilities are $657,708.
compared with $573,014. This leaves working capital of $1.-
767,377, as against $1,594,944 a year ago. Total assets are
$4,945,082, compared with $4,583,436.
February 11, 1921
THE MONETARY TIMES
59
Sun li/Je^^wmote
€mmM b|J2ANADA
87
HEAD OFFICE MONTREAL
92
JUBILEE YEAR
I lALF a century has elapsed since the Sun Life Assurance Company
1 1 of Canada issued its first policy in 1871. The figures submitted
herewith indicate the size, strength and outstanding position to which
the company has attained among the life assurance institutions of the
world, as a result of its operations during those first fifty years.
SYNOPSIS OF RESULTS FOR 1920
ASSETS
Assets as at 31st December, 1920 §114,839,444.48
Increase over 1919 9,127,976.21
INCOME
Cash Iitcome from Premiums, Interest, Rents, etc., in 1920 $ 28,751,578.43
Increase over 1919 3,047,377.33
PROFITS PAID OR ALLOTTED
Profits Paid or Allotted to Policyholders in 1920 $ 1,615,645.64
SURPLUS
ToUl Surplus 31st December, 1920, over all liabilities and capital. $ 8,364,667.15
(AccordinK to the Company's Standard, viz., for assurances, the Om IS)
Table, with 3H and 3 per cent, interest, and for annuities, the B.O. Select
Annuity Tables with 3h per cent, interest. I
TOTAL PAYMENTS TO POLICYHOLDERS
Death Claims, Matured Endowments, Profits, etc., during 1920.. $ 10,960,402.00
Payments to Policyholders since organization 102,187,934.30
ASSURANCES ISSUED DURING 1920
Assurances issued and paid for in cash during 1920 8106,891,266.23
Increase over 1919 20,342,416.79
BUSINESS IN FORCE
Life Assurances in force 31st December, 1920 $486,641,235.17
Increase over 1919 70,282,773.12
THE COMPANY'S GROWTH
YEAR
INCOME
ASSETS
LIFE ASSURANCES
IN FORCE
1872
$ 48,210.93
? 96,461.95
$ 1,064,350.00
1880
141,402.81
473,632.93
3,897,139.11
1890
889,078.87
2,473,514.19
16,759,355.92
1900
2,789,226.52
10,486,891.17
57,980,634.68
1910
9,575,453.94
38,164,790.37
143,549,276.00
1920
28.751.578.43
114,839,444.48
486,641.235.17
60
THE MONETARY TIMES
Volume 66
RECENT FIRES
Dingwall IJloilv and Nokomis Block in Winnipeg Suffered
Loss of SSOO.OOO and $75,000, Respectively— Large
Building in Toronto Suffered Loss of .$1.50,000
Danville, Que. — February 4 — Residence of Chester Brock
was damaged by fire. The loss is estimated at $600, and was
covered by insurance.
Hanover, Ont. — February 3 — The factory of Knechtel
Furniture Co. was damaged by fire. The fire, which was
caused by spontaneous combustion, did $8,000 damage.
Huntingville, Que. — January 28 — The barns and all out-
buildings of E. S. .A.ndres were destroyed by fire. The loss
is estimated at $5,000, partly covered by insurance.
Lethbridge, Alta. — February 1 — The washroom and
blacksmith's shop at the Federal coal mines in the river
bottom was damaged by fire. The loss is $1,600.
London, Ont. — February 5 — A vacant house, owned by
George Madge, on the third concession of London township,
was destroyed Jby fire. The loss is estimated at $2,000, with
insurance of $300.
Montreal, Que. — January 30 — Fire, believed to have been
caused by an electric iron, did $8,000 damage to the men's
furnishing store belonging to Sam Grover, 114 St. Catherine
Street West. There was $5,000 insurance.
February 7 — Fire, thought to have been caused by an
overheated furnace, broke out in a house under construction
at the corner of Dorchester Street and Clandeboye Avenue.
Nokomis, Sask.— February 3— The Nokomis Meat Mar-
ket, theatre, tailor shop and picture gallery were damaged
by fire. " One fatality.
Ottawa, Ont. — February 1 — Fire, believed to have origi-
nated from a spark from a chimney, caused damage estimated
at $1,500 to the residence of R. D. Baker, 325 McLaren
Street. The loss is covered by insurance.
Parkman, Sask. — January 30 — The barn and contents
owned by John Green, of Cannington Manor, were destroyed
by fire. The fire is said to have started from a lantern left
burning in the barn. The loss is partly covered by insurance.
Pine Hill, Que.— February 7— Residence of Leo Carriere
was destroyed by fire. There were four fatalities.
Sackville, N.B.— January 13— Linvley Hall, a part of
Mount Allison University, was destroyed by fire with a loss
of $35,000.
Sandwich. Ont. — February 1 — Residence of. George
Julian, King Street, was damaged by fire. The loss is placed
at $3,000.
Smith's Falls, Ont. — January 28 — House owned by Mr.
Phillips was destroyed by fire. The cause of the fire is not
known.
St. Mary's, Ont. — January 31 — Fire of unknown origin
broke out in the flour mill on Queen Street, owned and oper-
ated by H. L. Rice. The loss is covered by insurance.
South March. Ont.— January 30— Residence of Robert
Richardson was destroyed by fire. The fire, which was caused
from the furnace, did $30,000 damage.
Toronto, Ont. — January 28 — Forum Building, at the cor-
ner of Yonge and Gerrard Streets, was destroyed by fire.
The origin of the fire is unknown, but it seemed to centre
towards Shaw's Business College. The building was valued
at $100,000, with insurance of $50,000.
January 31 — Hot ashes igniting a partition in the base-
ment of the candy store of Burger's, Ltd., 92% Yonge Street,
resulted in an outbreak of fire which did $2,300 damage.
February 2— The premises of the Woltz Moulding Manu-
facturing Co., 145 Van Home Street, were damaged by fire.
The loss is estimated at $7,000.
Trenton, Ont. — Januai-y 26 — Fire caused by an over-
heated stove destroyed the grocery store of T. P. Michand,
also the home of T. L. Shaw and the barn belonging to B.
Powers.
January 30 — Home of Fred McQuoid, west of Trenton,
was destroyed by fir-e. The property was insured.
Toronto, Ont.— February 3 — The residence of Major
D. N. Matheson, at Stop 18 on the Lake Shore Road, was
destroyed by fire. The loss to building is $18,500 and to con-
tents $40,000.
February 4 — A fire broke out on the second floor of a
building at 167 King Street East, doing $5,200 damage. The
fire started on the floor occupied by F. Ellis, dry goods firm.
February 6 — A summer cottage at 8 Fir Avenue, be-
longing to Harry Beefsly, 16 Fernwood Park Avenue, was
destroyed by fire. The loss is $1,600. The building at 20-22
Wellington Street West was destroyed by fire. The fire almost
wiped out the M. L. Willinsky Co., importers and jobbers,
and Suckling and Co., trade auctioneers. The loss is esti-
mated at $150,000.
February 7 — A building in the rear of 8-10 Sylvan
Avenue was damaged by fire to the e.xtent of $1,400. An
electric stove caused the blaze.
Vernon, B.C. — February 4 — Residence of Hugh Heggie
was damaged by fire. The fire was caused by a cigarette
stub. Two fatalities.
Windsor, Ont. — February 1 — The east wing of the British-
American Brewery, West Sandwich Street, was damaged by
fire. The loss is estimated at $25,000. The clothing store of
Samuel Schwartz, East Sandwich Street, was damaged by
fire.
Winnipeg, Man. — January 28 — Loss estimated at $100,000
was sustained by firms occupying space in the Stovel Build-
ing corner of McDennot Avenue and Arthur Street, when a
fire broke out in the basement. •
January 30 — The C.N.R. gas-house in Fort Rouge yards
was destroyed by fire. The loss is covered by insurance. The
premises, 408, 410 and 412 Portage Avenue, occupied respec-
tively by the United Meat Co., the Dominion Bank and
Sigmond's Tailoring Co., were damaged by fire. The loss is
estimated at $5,000.
Winnipeg, Man. — February 3 — The interior of the Ding-
wall Block, Albert Street, was destroyed by fire. The loss
is estimated at $300,000.
FebiTiary 6 — The upper part of the Nokomis Block,
344 Cumberland Avenue, was damaged by fire. The loss is
estimated at $75,000.
Yarmouth, N.S. — January 26 — The house owned by C. N.
Adams, just beyond the eastern limits of the town, was de-
stroyed by fire. There is $950 insurance.
ADDITIONAL INFORMATION CONCERNING FIRES
Craik, Sask. — December 22 — Two-story brick building
owned by Craik, S.D. 891 was destroyed by fire. The total
loss is $40,000, with insurance of $21,605 in the following
companies: Hartford, $6,835; Guardian, $3,835; Pa<;ific Coast,
$3,335; Home, $3,000; Hudson Bay. $600; British North
Western, $3,000, and Yorkshire, $1,000.
Gait, Ont. — January 19 — A roughcast structure, two
stores and flat belonging to W. H. Pinkett. The fire was
caused by the plumber's torch. Estimated loss, $1,150, with
insurance of $3,200 in National Ben Franklin and Dominion
fire insurance companies.
Hamilton, Ont. — January 26 — Building and bank fittings,
occupied by Royal Bank of Canada and owned by Globe
Realty Co., Ltd., were damaged by fire. The total loss is
$75,000, with insurance in the Royal and Continental insur-
ance companies.
Manitoba. — During the month of December there were
127 fires reported, with an estimated loss of $102,765. During
the month there were four fatalities. The following is a list
of the class of structure destroyed or damaged: Dwellings 44,
farm buildings 30, stores 8, garages 7, apartment buildings 5,
hotels 3, stores 3, automobiles 3, stables 2. The following
were the causes reported: Stoves and furnaces 31, matches 12,
electricity 11, smoking 10, hot ashes 7, and explosions 3.
Ontario. — The fire marshal's report for the month of
December shows that during the month there were 747 fires
reported, with an aggregate loss of $729,059. During the
month there were three deaths from fires.
Frrt-iiHKD EvF.Rv Fkioav
The Monetary Times
Printing Company
of Canada, Limited
"The Canadian Engineer'
Trade Review and Insurance Chronicle
of (FanaDa
Established ISS";
Old as Confederation
JAS. J. SALMON D
President and General Manager
A. E. JENNINGS
AsBlstant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
Life Insurance Without Medical Examination
Canadian Companies Now Venturing Into this Field — Experience
in Great Britain and United States — Should the Application Form
be Different ".'—Some Proposed Regulations for Use in Canada
FOUR Canadian compa'nies, the Confedeiation Life, Lon-
don Life, Manufacturers' Life and the Excelsior Life,
are now writing business up to $1,000 without medical ex-
amination of the applicant. This form of insurance is by
no means open to all, however, as many questions relating
to the applica-nt's health must be answered on the special
application form provided for this class of business. This
. innovation has been considered for some time by the life
companies, but it was just at the new year that action was
taken.
In an address before the Insurance Institute of Toronto
on February 17, E. E. Reid, man&ger of the London Life
Insurance Co., of London, Ont., discussed this subject fully.
He said in part: —
"The business of life insura-nce in the period before the
war was always considered of such a stable nature that
no serious upheavals were thought to be possible, and its
staid dignity became almost a bye-wortl among the more
venturesome in the world of affairs. During the past six
years, however, one shock after another has followed in
quick succession, and if it were not a business crammed full
of vitality and based on a rockbottom foundation of the
most certain of all sciences, it would not have been surpris-
ing had many failures been recorded.
"Xo one will accuse the life companies of making undue
profit.* in these past years, and as a result of the experience
of the period in question, not only has the mind of the general
public become imbued with the stability and safety of life
insurance institutions, but even in the minds of those more
or less directly engaged in the business, a confidence has
been established greater than ever existed before.
"Fortunate it is that the executives of the various com-
panies did not know in 1914 what the future held, and it is
sufficient of a nightmare to them to look back over the inter-
vening period. Even now, although the direct strain of the
war ami epidemic period is, if not relegated to the 'limbo
of forgotten memory,' at least losing the sting of its im-
mediate presence, we are confronted with a more or less
artificial strain resulting from the very popularity which
the business is experiencing.
Present- Day Conditions
"Thi.« is not the time to discuss the intricacies of the
Net Level Premium Reserve Basis, which has been the
foundation stone of the stability of Canadian life insurance
companies. It foi'ms, however, a stumbling block to a
realization on the part of the general public of the peculiar
difficulties that accompany tfle development of the business
of a life insurance company. Indeed, I venture to say that
a considerable proportion of the staffs of the head offices
of the companies who have had to handle the recent unusual
rush of business would find it hard to believe that on ac-
count of the reserve requirements, this all meant additional
strain rather than immediate prosperity.
"We have had, then, in succession, the war period, in-
cluding the Halifax disaster; the epidemic period, far greater
in its intensity than the war strain of a like duration; the
strain of the readjustment of the financial market; the strain
of the new business expansion; and the strain incident to
conducting a business on pre-war premiums, but paying ex-
penses on a post-war basis. It is not to be wondered at that
the comfortable circumstances which characterized the posi-
tion of most of the companies prior to the war have been
rudely jolted, and the surplus resources of all the companies
have been considerably depleted, without, however, affecting
in the least their stability.
"After all these cruel shocks, it has been left to the
medical examiners to threaten the final staggering blow.
Rumblings have been heard in many quarters as to the dis-
satisfaction of the local medical examiners that the fee for
examinations has not been increased in recent years, and
certainly no one can complain if the general experience of
the medical profession points to the necessity of a raise in
the fees for medical exaniination. It is not within the pro-
vince of this paper to comment upon this problem. It might
be pointed out, however, that no increase in the rate of com-
mission to the agents has generally been made throughout
the war period, but individual agents have, nevertheless,
multiplied their incomes through the greater volume of
business transacted. As the agent's remuneration has been
multiplied, so has that of the local examiners, although, of
course, more of their time has been required to dispose of the
greater volume of business passing through their hands.
Assuming, however, that the time spent on the individual
examination is not sufficiently compensated by the fee here-
tofore paid and an increased fee must be faced by the com-
panies, even for the smaller policies, another considerable
burden will be added to a business that has already borne
many heavy and unforeseen expenditures.
"If this additional burden must be faced, many companies
will find it desirable to seek relief in a manner that will
lighten the initial cost of procuring their business. Even
if a system wei'e adopted under which the ultimate cost would
be the same or somewhat greater, there would be still be
justification for a change if the expense can be adjusted
from th&t of a first-year charge to a charge spread over a
number of years.'
Advantages of Non-Medical Business
"In many sections of the country :;• great difficulty has
been experienced in obtaining examinations after the agent's
part of the work has been accomplished. The waiving of the
medical examination will bring within the protection of the
life insurance system a great many homes that are now
without it. The introduction of such a system would go a
long way in maintaining the popular interest that has in
recent years been created in favor of the business. The
multiplying of the number of small risks, provided they are
of good Quality, thereby more widely spreading the total
THE MONETARY TIMES
Volume 66.
amount of risk, would be of benefit, as those engaged in the
business of fire insurance can so well testify. Should the
practice become fairly general, the eflfect would also be to
enable such company to accept, without undue strain, a con-
siderably larger volume of business than is now possible.
"Finally the system would relieve the companies in re-
gard to the heavy first-year expense which is abnormally
high, especially in the case of small policies.
"We may, therefore, give consideration to the questions
that arise in putting into effect a non-medical system and
the bearing it may have on the ultimate conduct of the
business.
History
"Group insurance brought strongly to the attention
of the Canadian actuaries the question of accepting risks
without medical examination, and it was surprising to find
how many thought either that it was not possible legally to
transact such business, or that it was quite too dangerous
an experiment to attempt it.
"Life insurance without medical examination, however,
far anti-dates the business of group insurance, although not
in this country, for policies of any considerable amount. In
Great Britain the system has been in vogue for "ordinary"
insurance for a great many years, and a very complete
resume of the plans in use there is contained in a paper by
Mr. John Nicoll, read before the Faculty of Actuaries in
1904 and contained in Part IV., Vol II. of the Transactions
of the Faculty. Mr. Nicoll deals most exhaustively with the
subject, and any student will find his paper very interesting
reading. It is not necessary, however, on the present oc-
casion, to go over all the ground covered by Mr. Nicoll, but
it will suffice to quote from his paper to the extent necessary
to give a reasonably clear idea of the development of the
system of non-medical insurance in the old country.
"It is, of course, known to most of us that in the early
days of life insurance, the directors themselves formed the
medical board which passed upon the suitability of the
applicant for insurance. Stories are told of these applicants
having to present themselves in person and go through such
gymnastic exercises as the board of directors might think
necessary to ensure a thorough test. It would appear that
this system was adhered to for more than a century, but that
in the early years of the nineteenth century some movement
in the direction of regular medical examinations was in
evidence. Although the Equitable Society was formed for
the purpose of conducting insurance somewhat on modern
lines, and was founded in 1762, it was not until the year
1858 that a regular medical examiner was appointed, and,
generally speaking, it was subsequent to the middle of the
nineteenth century before anything like the full reports now
recorded were adopted for use.
"The practice of calling for a complete report having
gotten well under way, one question after another was added
until the report forms became so formidable that the ex-
amination 'became a serious business not only for the ex-
aminer but also for the examined.' The elaborateness of
the report was such as to call forth protests both from
medical examiners and actuaries, and in view of the present
consideration of the subject, the statement of Mr. James
Chisholm, in his paper read before the Institute of Actuaries
in March, 1886, is worth noting: —
" 'We may be inclined to doubt the wisdom of our fore-
fathers and to deride a practice which falls so far short of
the requirements of the present da^^ But I am heretical
enough to think, notwithstanding the advanced stage of
scientific precision at which we have arrived, that in some
respects we might do well to copy them, and that, with the
addition of a statement of the family history, we might ac-
cept lives coming to us under the same conditions that sur-
rounded and safeguarded these early prospects for life in-
surance without the necessity even of a medical examina-
tion. . . . We may discredit the cause of life insurance
with the public by a too rigid adherence to forms and red
tape, when they might easily be relaxed or dispensed with.
"Following this and similar opinions expressed on the
subject, there was, in 1890, a proposal put forth by one of
the English officers to accept applicants without medical
examination.
Actual British Experience
"The initial proposition introduced in 1890 contemplated
the issuance of a policy on the ordinary whole life with-
profits plan, but during the first five years no insurance
would be carried other than the return of premiums to be
paid in the event of death. At the end of five years the
policy, ipso facto, became a with-profit endownnent insurance
payable at the end of fifteen years or at previous death, and
the corresponding endowment premium, at the attained age,
became chargeable. The onerous restrictions thus imposed
militated against the popularity of the scheme, but the com-
pany's experience seems to have been such as to encourage
them to continue the system, but with very marked modifica-
tions. In 1900 the following regulations were adopted:—
(1) Insurance could be effected on any of the regular plans.
(2) In the event of death during the first year the amount
payable was one-third of the sum insured. ^3) If death
occur during the second policy year, the amount payable was
two-thirds of the sum insured. (4) If death occur after two
years or by accident at any time, the amount payable was
the full sum insured.
"A further restriction which still appears to be retained
by all English companies was that no assignment of the
policy is allowed within a period of two years from date of
issue.
"The expei-ience under this much more liberal scheme
must have been well within the expectations, for the con-
ditions now pertaining to business of this kind (adopted in
1912) in the English office, most actively engaged in non-
medical business, and presumably the same office which in
1900 imposed the above limitaitions, are: — One-third of the
sum insured payable in the event of death within the first
three months. Two-thirds of the sum insured in the event
of death during the second three months. The full face of
the policy thereafter, with the limitation of a maximum
amount not of £200 but of £1,-000, and with the further modi-
fication that the full amount is payable in the event of death
by accident, even during the first six months of the life of
the policy.
"It might be thought that the application form of the
English companies for such insurance would be a rather
formidable document. As a matter of fact, the number of
questions asked, other than that relating to the kind and
amount of insurance, covers only questions relating to
height and weight, name of family physician, questions re-
lating to bodily deformity, rheumatic fever, diseases of the
heart and lungs, history of any other disease, a single ques-
tion as to family history, a single question as to the time
and cause of death of any member of the family and the in-
surance history of the applicant. The form is not burdened,
either, with a declaration at the bottom, which is so long
and so cumbersome as to make it practically certain that no
court would believe that the average applicant would either
read it over or listen to it being read over, the declaration
in the English form running as follows: — "I do hereby de-
clare that the whole of the foregoing statements are full and
complete."
"In spite of the gre&t simplicity of the forms required
by the English companies, the statement is made that the
results of this business have proven very satisfactory. It
cannot be said that English companies have moved without
caution, and I don't think any^ of us would be prepared to
accuse them of not knowing what they were doing. If, then,
after thirty years' experience thev are prepared to issue
policies up to £1,000 without examination, on such a simple
form as outlined, place no other restriction on the policy,
except the very moderate one applicable for only six months,
either as to extra premium or dividend distributions, we
(Conthmed on page H)
February 18, 1921
THE MONETARY TIMES
Parliament Opens with Political Battle
Financial Legislation Anticipated by Several Petitions, Relating
to Dominion Life, Fidelity Company, and Others— Tariff Issue
to be Prominent — Expansion i of Soldiers' Insurance Scheme
THE WEEK IN PARLIAMENT
Monday, February 14 — Speech from the Throne,
Petitions presented.
Tuesday, February 15 — Address in reply to Speech from
Throne,
"No confidence" amendment by
Liberal leader.
Wednesday, February 16 — Debate on address continued.
(Special to The Monetary Times.)
Ottawa, February 17,
1921.
L
THE Speech from the Throne at the opening of Parliament
on Monday held no surprises. The character of the
legislation to be introduced this session will be about as
forecasted in The Monetary Times of last week. Contrary
to custom the intention to revise the tariff was referred to
in the Speech, this being an invitation to the two oppositions
to make it an issue in the debate to follow. The Liberal
leader, Hon. W. L. Mackenzie King, however, devoted his
whole address to an amplification of his amendment to the
motion of the aiUlre.-?s in reply to the Speech from the Throne
to the effect that the House and country no longer had con-
fidence in the .-Vdministration and that its continuance in
office would constitute an usurpation of the powers of popular
government. Progressive Party speakers will give more
special attention to the tariff next wt^k, but a long list of
Liberal speakers will follow the line taken by Hon. Mr.
King.
Up to Wednesday evening no bills of interest to the
financial world had been introduced but a number of petitions
had been presented indicating some of the legislation to be
introduced later. The Dominion Life Assurance Co. wants
its powers changed so that it may establish "a section on
the principle of non-participation in profits," and providing
that "in the distribution of profits, the directors shall allot
to the policyholders in the participating section of the com-
pany at least nine-tenths of the profits declared from time
to time, which shall be payable as the directors by by-law or
regulations from time to time determine." This was signed
for the company by the president, Mr. Thomas Hilliard and
by Mr. Fred. Halstead.
The Fidelity Co. of Canada asks power "with such,
other persons as become shareholders of the company" to
incorporate for the purpose of carrying on a general busi-
ness of insurance under the Insurance Act of 1917. Those
signing the petition are Lancing Belmont Campbell, Frederick
Lane, Arthur James Ernest Kirkpatriek, Sidney William
Bond and Herbert Abraham Clarke.
The James MacLaren Co., Ltd., which manufactures
lumber, good goods and pulp in Buckingham, Que., more
especially pulp for export to foreign countries, now wants
power to erect paper mills in the same vicinity to manufac-
ture this pulp into paper. It asks for the power to increase
its capital stock, and wants the limitations on its borrowing
powers removed.
Oil discoveries in Noi-thern Canada seem responsible for
the application by Messrs. A. J. Gillis, K. J. Robinson, R. B.
Young and W. A. H. MacWillie for a franchise by the Mayo
Valley Railway. Ltd., for a railway from the junction of the
Mayo and Stewart rivers in Yukon territory to the Mc-
Questen River.
The London and Lake Erie Railway and Transportation
Co., ask for power to dispose of right-of-way and all property
with the written consent and approval of the Fidelity Trust
Co. of Ontario, trustees for the bond holders.
The Montreal, Ottawa and Georgian Bay Canal Co., asks
an extension of its time lor commencing these great under-
takings from May 1st, 1921 to May 1st, 1924, and of com-
pleting them from May 1st, 1927, to May 1st, 1930.
Soldiers' Insurance
In order that information regarding the Returned
Soldiers' Insurance Act may be made more easily accessible,
arrangements have been made to establish insurance sections
in connection with local offices of the Department of Soldiers'
Civil Re-establishment throughout the country. Major C. B.
Topp, who is in charge of the administration of the Returned
Soldiers' Insurance Act under the Pension Board, has left
for western Canada in connection with the organization of
these sections, and will address meetings of returned soldiers
at the principal points. Insurance is now being applied for
at the rate of about $250,000 a week, the total amount in
force being approximately $6,000,000.
The Dominion government will attempt to recover from
all manufacturers selling direct to the retail trade the
amount of the two per cent, manufacturers' tax, which, under
the War Revenue Act of 1915, and amendments thereto, they
are supposed to collect from their customers at time of sale.
Many manufacturers have refused to pay this impost since
May 19 last, and the government purposes to make a test
case of the matter. The action of the government will affect
thousands of manufacturing retailers all over Canada, in-
cluding confectioners who sell at retail confectionery of their
own manufacture, custom tailors, dressmakers, milliners,
furriers, tinsmiths and men in other lines that will readily
suggest themselves.
Sir Henry Drayton, Minister of Finance, has been ap-
pointed Acting Secretary of State in place of the late Right
Hon. Arthur Sifton, and will continue until the time, now
very indefinite, when the vacant portfolio is filled.
" The Nigerian Customs Department has issued a com-
prehensive and well-illustrated report on the development of
trade relations between Canada and Nigeria. It is stated that
regular steamship communication between the chief Nigerian
ports and Canada is essential to expeditious growth of Cana-
dian trade with these markets, but it is equally important
that the rates between these ports and Toronto and Montreal
should approximate those for cari-ying between these ports
and the ports of the United Kingdom. It is suggested that
this would lead to the establishment of branches in Canada
by British merchants now engaged in the West African
trade, an increased supply of Canadian manufacturers to
these places, and the establishment of Canadian firms in West
Africa.
Report of Insurance Department
Influenza was more costly to life insurance companies
operating in Canada during the year ending March, 1920,
than was the war. This information was given in the annual
report of the Superintendent of Insurance, tabled in the House
on Wednesday by Sir Henry Drayton. The Superintendent of
Insurance, G. D. Finlayson, stated in his report that one of
the outstanding features of the insurance business during the
year ended March 31, 1920, was the excessive mortality in
the early months, due to the influenza epidemic. Net death
claims during the year totalled $16,927,345, of which $785,331,
or 4.64 per cent., were due to the war, and $2,995,228, or 17.69
per cent., due to influenza.
The Bank of Hamilton has declared a bonus of V2 of
1 per cent, in addition to its regular quarterly dividend of
3 per cent.
THE MONETARY TIMES
Volume 66.
MANITOBA'S FIRE LOSSES $2,276,000
Keport <»n Fires in 1920 Suggests Stricter Control— Sanford
f>ans Says Present Readjustment Period is
Unprecedented
(Staff CorrespondciH-e.)
Winnipeg, February 17, 1921.
rp HIS week Winnipeg is in the gvip of a real western bliz-
■1- zard — the first bad one of this winter. Business is
fairly active on account of many conventions and the thirty-
third annu&l Bonspiel, still in progress.
A. M. Fraser, one of the large taxpayers of Winnipeg,
is agitating for some change in the taxation system of the
city, and has sent a statement with reference to some of his
properties for the year 1920 to each member of the city
council. The figures of Mr. Fraser show that in the year
1920 tr.'xation on four central properties took 42 per cent,
of the net income, and that on six other central properties
taxation took 65 per cent, of the net income. No allowance
of any kind was made for depreciation in making these com-
putations and no allowance was made for interest. Mr.
Fraser's contention is that taxes of this kind must be based
on the net revenue from the properties and not on the
assessed value. He admits that it is quite proper to tax the
unearned increment, but argues that this should be collected
when the property changes hands when there are funds to
pay the tax. The results of the present system are seen in
many municipalities in western Canada where immense
quantities of land have come into the possession of the muni-
cipalities, which at the same time are unable to secure enough
actual money to carry on.
Mr. Fraser also urges that if a municipal income ta-x is
imposed, which he favors, the disposition of this money ought
to be guarded. It should not be treated as supplementary
revenue, but should be used for designated purposes such
as education, highways, etc.
Insurance Developments
The provincial government, now in session, had presented
to it this week the report of fire protection. It stated that
the premiums collected during the yeM- amounted to $11,-
656,309. Losses paid were $3,501,506. There are 31 licensed
insurance companies doing business in the province and 135
registered companies are doing business under the Manitoba
Insurance Act. The very heavy increase in the premium
income, it was stated, would offset much of the increase in
the amount of the losses which had been paid. The opinion
that some sort of qualification should be required from in-
surance agents before a certificate of authority is issued to
them, is gaining ground, and it is anticipated that it will not
be long before strong representations will be made to the
legislature that the grounds for the cancellation or refusal
of an agent's certificate of authority be considerably in-
creased.
There were 1,739 fires; the total loss is estimated at
$2,276,261; the increase in numbers is 136 and the increase
in the loss $641,399. In Winnipeg there were 893 fires and
in Brandon 130. The loss ratio per capita, of the province
based on an estimated population of 613,000 amounts to
$3,713, against $2,667 for the previous year. There were
24 deaths from fires. The report stated that 75 per cent, of
the fires were due to "sheer carelessness or ignorance." Plans
are under consideration for the cre&tion of a greater interest
in fire prevention.
Cold Storage Enterprise
The minister of agriculture, Hon. G. H. Malcolm, has
announced that unless private companies who are going in
for cold storage establishments take the matter up at once,
that the government would have to go in for the establish-
ment of cold stor£.ge themselves. The Prairie Cold Storage
, Co. are therefore pushing their enterprise, which has a capi-
talization of $2,00,0000, and expect to secure the necessary
capital in England.
lEx-Mayor W. Sanford Evans addressed the members of
the Canadian Credit Men's Trust Association Mid the local
branch of the Manufacturers' Association this week on the
business outlook, strongly advising a get-together attitude
in all lines of business. Mr. Evans said: "This present period
of readjustment is not precedented in the world's history;
it has been the lot of nations. But without getting together,
without co-operation and cohesion, no nation can go ahead in
a commercial or any other sense. The get-together spirit is
the very quality to be fostered if those many questions which
vitally affect the commercial life are to be solved and placed
upon a satisfactory basis. But while readjustment may be
inevits'ble and performs a natural economic function, it need
not prove disastrous to business. On the contrary, it will
eventually place conditions upon a more stable basis." Mr.
Evans believes Canada will emerge quickly. Already thei-e
are discernible signs of her getting around that comer which
the commeice of the country commenced to turn with the
beginning of the readjustment period.
STANDARD BANK STATEMENT REFLECTS STEADY
EXPANSION
In business for forty-six years, the Standard Bank of
Canada has built up a substantial banking business,
which is reflected in the annual statement just made public.
As the result of steady expansion arrangements have been
made for larger capital and reserve. With the payments al-
ready made, the capital now stands at $3,802,001, compared
with $3,500,000 a year ago, while the reserve fund is $4,-
800,000, as compared with $4,500,000.
Of special interest to shareholders will be the satis-
factory character of the profit and loss account. With larger
capital and reserve at its disposal, there has been a sub-
stantial gain in net profits, and for the year these amounted
to $784,369, up from $776,310 in the previous year. In ad-
dition there was a balance carried forward of $360,537 and
premium on new stock of $226,500, which, when added to
profits brought the total available for distribution up to
$1,371,407. Of this amount $100,000 was written off bank
premises, $300,000 was transfeiTed to reserve, and dividends
at the increased rate of 14 per cent, were paid. The amount
carried forward was $378,643.
With the growth that has occurred in the bank's busi-
ness, the current loans now stand at $50,896,884, as com-
pared with $33,749,339, at the beginning of the war period.
The total assets have gained to $90,183,979, as compared
with $53,822,121 five years ago. Of the total assets, liquid
assets amount to $36,437,353, which are equivalent to 45 per
cent, of the liabilities to the public, while actual cash on
hand, as represented by coin current. Dominion notes' and
deposits in central gold reserves, amount to $15,152,827,
equivalent to 18 per cent of public liabilities. The gain in
the interest bearing deposits is particularly striking, these
now amounting to $53,011,997. This compared with $49,940,-
378 at the end of the previous year and $33,986,616 five
years ago.
The following comparison of some of the principal ac-
counts makes the present condition of the institution more
clearly apparent: —
1920. 1919. 1913.
Total assets $90,183,979 $93,405,405 $45,661,015
Cash assets 15,152,827 16,425,123 6,232,972
Liquid assets 36,437,353 37,412,187 13,726,092
Current loans 50,896,884 52,463,278 30,506,319
Total deposits 67,389,710 74,019,022 35,018,592
Circulation 6,134,000 6,766,218 2,6.52,643
Capital 3,802,001 3,500,000 2,860,240
Resei-ve 4,800,000 4,500,000 3,760,240
The falling off in general business is reflected in the
current loans, demand deposits and circulation, but the con-
dition of the other accounts indicates that the bank is ready
to take care of the commercial demands when the revival
comes.
February 18, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
of Canada
Address: Corner Church and Court Streets. Toronto, Ontario, Canada.
Telephone: Main 7404, Branch Exchange connecting all departments.
Cable Address: "Montimes, Toronto."
Winnipeg Office: 1206 McArthur Building. Telephone Main 3409.
G. W. Goodall. Western Manager.
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The Monetary Times does not necessarily endorse the statements and
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PRINCIPAL CONTENTS
Editorial: page
The Outlook at Ottawa 9
The Fordney Tariff Measure i)
The Snioot Service Corporation . 10
The Operation of a Bond House 10
A Joint Ownership Plan 10
Special Articles:
Life Insurance Without Medical Examination 5
Parliament Opens With a Political Battle 7
Banking Opportunities and the Aftermath 18
Building: Permits in 1920 26
Ontario Treasurer Estimates Surplus 30
Organized Farmers' Movement is Economic 34
Voluntary Winding-up Does Not Constitute Insol-
vency 42
Monthly Departments:
Building Permits 22
Dominion Finances in January 22
Government Savings Banks 24
Weekly Departments:
News of Industrial Development in Canada 44
Corporation Finance . 40
Insurance Licenses and Agency Notes 46
News of Municipal Finance 48
Government and Municipal Bond Market 50
Corporation Securities Market 54
The Stock Markets 5(5
Recent Fires go
THE OLTLOOK AT OTTAWA
IHE I OKDNEY TARIFF MEASURE
THE tifth session of Canada's 13th parliament opened at
Ottawa on Monday, under very favorable economic
circumstances. The wave of unrest which followed the war
has passed away. Everywhere a lack of interest in public
affairs is becoming more evident, especially as regards those
not directly relating to Canada. The radical stage has
passed, and it is now a (luestion how far public opinion will
shift towards conservatism.
In the political field the government's position is not
nearly so favorable. Several seats have been lost at by-
elections, and the Liberals and Farmers, the only two strong
groups in opposition, bid fair to form a working alliance.
The Unionist government was elected in 1917 as a war ad-
ministration, but has continued in power for over two years
after the armistice was signed, the change in name to the
"National Liberal and Conservative" party last year being
followed by the loss of many Liberal supporters who felt
that the change was a return to Conservatism.
It is to be expected, therefore, that contentious legis-
lation will be avoided. The speech from the throne refers
non-committally to unemployment insurance and to trade,
and the affirmation of the principle of protection calls for no
surprise. The only other legislation presaged is a bill to
abolish the Conservation Act, and one or two other colorless
measures.
In spite of this aim of the government, however, the
session may prove a stormy one. The opposition parties
have everything to gain and little to lose by aggressiveness.
Recent electoral successes have strengthened their hand, and
a general election will be brought about if possible. More-
over, apart from the government's so-called "usurpation"
of power there is much else on which criticism may be based.
The results of operation of the national railways have been
conspicuously unsuccessful, and the merchant marine service
may soon prove to be a financial loss as well. The compli-
cated system of taxation also has political possibilities from
the viewpoint of the opposition.
/^N Wednesday the United States Senate passed by a vote
^^ of 43 to 30 the "Emergency Tariff Bill," which puts a
tax on imports of certain farm products. As it is understood
that President Wilson will veto the measure, there is little
reason to believe that it will ever become law, since if all the
Senators, Republica.ns and Democrats, who are known to
favor the bill, were present and voting, they would still be
eight or ten votes short of the necessary two-thirds to pass
it over the president's veto. The bill, however, may be taken
as an indication of what will happen when the Republicans
get control of the house next month.
Among the new duties added by amendment were 30
cents a bushel on flaxseed, 10 per cent, ad valorem on shoes
and other finished leather products, 60 cents per gallon on
olives in bulk and 70 cents on olives in containers of less
than five gallons. The duty on apples was raised from 20
to 30 cents per bushel, while a duty of two cents per pound
was placed on lemons. .A. duty of two cents per pound was
also voted on condensed, preserved and sterilized milk, and
a duty of five cents per pound on sugar of milk. Cherries
are taxed 4 cents per pound. An amendment by Sena.tor
Spencer of Missouri to place a duty of two cents per pound
on sunflower seed was voted down. The duty on finished
leather, which is compensatory, was offered by Senator
Lodge. Two wool amendments for the benefit of the woollen
industry were also voted down because, in the opinion of the
supporters of the bill, it would have tended to lower the
other duties on wool previously voted into the bill.
As the bill goes to the house for conference, it carries,
in addition to the duties ah-eady named, a. duty of 40 cents
per bushel on wheat; 20 per cent, ad valorem on flour; 15
cents per bushel on corn and maize; 2 cents per pound on
beans; 3 cents per pound on peanuts; 25 cents per bushel on
potatoes; 2 cents per pound on cleaned, 1% cents on un-
cleaned rice and 1 cent per pound on rice flour, rice meal
and other rice products. The tax on cattle is 30 per cent,
rod valorem; on sheep of under one year of age, SI, and over
THE MONETARY TIMES
Volume 66.
one year $2 per head; 2 cents per pound on fresh or frozen
beef, veal, mutton, lamb and pork, and 25 per cent, ad valorem
on preserved and prepared meats of all kinds not specified in
the bill. Cotton with a staple of IVs cents or more is taxed
7 cents per pound, as are also goods made of the cotton,
while wool ta.xes vary according to the grade from 15 cents
to 45 cents per pound. Sugar is taxed one cent per pound
in addition to the present duty. Cheese and its substitutes,
8 cents per pound; butter, 8 cents; fresh milk, 2 cents; and
cream, 5 cents per gallon. The new tobacco taxes carried in
the bill vary from :!5 cents per pound for unstemmed filler
tobacco to $3.50 per pound for stemmed leaf tobacco.
THE SMOOT SERVICE CORPORATION, LTD.
*if\ NE call" is the plan on which the Smoot Service Cor-
Vf poration, Ltd., Toronto, plans to sell securities. This
lirm is an oifshoot of the Smoot Corporation, Buffalo, which
has been in operation for some time. They are to be under-
writing corporations, but for the present the Smoot Service
Corporation is confining its activities to selling its own
stock. The opportunity to invest in an underwriting house
is not new in Canada, but previous enterprises of the kind
have not been successful. As "one call" presumably means
one opportunity to buy stock, the method may meet with the
approval of prospective investors who have hitherto been the
victims of persistent salesmen.
The plan the Smoot Corporation works on is, first to
organize a local mortgage company— interesting some of
the leading men of the city in the enterprise, who not only
buy stock but become directors in the new "mortgage" com-
pany. The Smoot Corporation then push the sale of the
preferred stock of the mortgage company, devoting the entire
time of the local organization to the placing of the stock
until the matter is cleaned up. This selling campaign, they
state, might cover a period of eighteen months. The pre-
ferred stock of the local mortgage corporation is sold at
100— officials of the company state the mortgage corpora-
tion receives 100 cents for every $1.00 of preferred stock
sold — with no deduction for brokerage or promotion expense.
Each purchaser of preferred stock is required to buy an
equal number of shares of common stock — of no par value^
at around $50 per share — from the proceeds of the sale of
this common stock the promotion and brokerage expense is
paid — balance goes to the company.
One company of this kind has been financed in Buffalo.
It commenced business under the name of the Frontier Mort-
gage Corporation, and started with an authorized issue of
$5,000,000 preferred stock — 75,000 shares, no par value, com-
mon. Through the steady selling of stock, the company is
constantly fed with new money, and its ability to buy short-
term mortgages is supposed to about keep pace with receipts
from sale of stock.
THE OPERATIONS OF A BOND HOUSE
BECAUSE of its private nature very little is known of
the operations of an investrnent firm. Some years ago
a Canadian underwriting house, which' had a fairly large list
of shareholders, made public the results of its operations to
the extent of a brief annual report. This very soon ceased,
however, and now the business of security underwriting and
brokerage is entirely conducted by private concerns, having
only a few shareholders, and strictly avoiding all publicity
as to the profits of their business. This is true of Great
Britain and the United States also.
Once in a while, however, some special occasion leads to
publicity. This has just taken place in the case of the promi-
nent bond house of Morris Bros., of Seattle, a firm which
is well known in Canada, and which, as a matter of fact, had
just arranged a deal *ith Edmonton before its failure a few
weeks ago. It is now in the hands of a receiver, and in a
statement of its affairs, issued on February 1, assets of
$2,429,966 and liabilities of $3,166,977 were shown, leaving
a deficit of $737,011. The principal assets were: Bonds,
$1,337,209, of which $601,791 were collateral to bank loans,
$196,000 collateral to interims, and $59,500 segregated for
delivery; accounts receivable, $266,048; cash in banks, $303,-
376; bonds held by banks on repurchase agreements, $265,900.
The chief liabilities were: Interims, unsecured, $1,918,-
650; notes payable, $478,000; secured interims and payables,
$200,200; and repurchase agreements, $234,378.
A JOINT OWNERSHIP PLAN
WHILE the spotlight of public attention has to a large
degree been removed from questions of industrial rela-
tions, evidence regularly comes to hand of new efforts to-
wards an improved basis. One of these is the "Extra Com-
pensation and Stock Ownership Plan" adopted by stock-
holders of the International Harvester Company and its sub-
sidiary companies in Canada and the United States. It is
designed to "strengthen the community of interest between
the company and its employees, and to reward continued and
effiicent service," and is, in other words, "employee owner-
ship in the company's stock." It is distinctly an incentive
for the company's employees to contribute their full share
towards the success of the business, for it cannot be doubted
that a substantial part of each year's earnings depends on
intelligent, unflagging team work throughout any such or-
ganization.
The International Harvester Company will set apart out
of its earnings for 1920 and annually thereafter, for the
benefit of those of its employees and employees of its
affiliated or subsidiary companies in the United States and
Canada who are not employed in any managerial or executive
capacity (subject to certain conditions), an extra compensa-
tion fund which will equal forty (40) per cent, of the com-
pany's profit for the year in excess of seven (7) per cent,
upon the invested capital in the business of the company.
This extra compensation-fund is to be distributed to the
said employees in the proportion which the actual earnings
of each employee for the year bear to the aggregate earnings
of said employees.
Arrangements are being made in London whereby a-U
electric lights in the city will wink thrice to notify citizens
when a burglary or hold-up is pulled off. — An alternating
current, no doubt.
A decrease of $5,495,449 in the national debt was achieved
in January. This is not however, a cue for tax reductions,
for tax receipts are bound to fall of their own accord through
the decline in prices.
PROTECTING THE SHORTS
An old, honoi-able and ultra-conservative corporation was
holding its annual meeting. A few stockholders straggled
into the board room who were not readily recognized by the
corporation's keeper of the inner portals. This fact wa<s
conveyed to the chairman and, lest some hitch occur in the
plans of the annual meeting, he decided to poll the proxy
and stockholders present.
Starting in at the first row and singling out each in-
dividual, the chairman asked how many sha-res of stock,
held by whom, the visitor represented. "Five thousand
shares of A. B. C. and Co.'s," replied one. "Two thousand
shares of the estate of William Spivens." replied another.
All answers were satisfactory until the chairman reached a
small individual, the last man in the last row.
"May I ask whom you represent?" inquired the chair-
man.
"Yes, sir, you may," was the response. "I represent the
short interest."
Febi-uary 1>. 1921
THE MONETARY TIMES
Bank of Hamilton
HEAD OFFICE
HAMILTON
Established 1872
Capital Authorized
Capital Paid Up (January 31st, 1921)
Reserve Fund (January 31sl, 1921)
$5,000,000.00
4,988,390.00
4,694,195.00
Directors
SIR JOHN HENDRIK. K.C.M.G., C.V.O., President
CYRUS A. BIRGE, Vice-President
HOWARD S. AMBROSE C. C DAI,TON
ROBT. HOBSON \V. K. PHIN
I. PITBLADO. K.C. \V. P. RILEY
J. TURNBUI.L VV. A. WOOD
ALAN V. YOL'NG
Branches
At Monireal, and throughout the Provinces of
Ontario, Manitoba, Saskatchewan, Alberta and
British Columbia.
Savings Department at all Offices.
Deposits of $1 and upwards received.
Advances made for Manufacturing and Farming
purposes.
Collections effected in all parts of Canada promptly
and cheaply.
Correspondence solicited
J. P. BELL - - General Manager
EXPORT TRADE
The extensive foreign con-
nections of this Bank enable
us to place at the disposal
of our customers the best
existing world-wide banking
facilities.
Our local Manager is in a
position to give you both
assistance and advice.
IMPEKIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
Experienced
Banking
Service
A PERFECT commercial banking
service is only evolved by expe-
rience. A bank's value to its cus-
tomer increases proportionately
with the widening of its knowledge.
The Union Bank has been engaged
in commercial banking for more
than half a century, and has at-
tained a clear perception of its
duties to the banking public.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55, OLD BROAD STREET. E.C.2
T H E M O N E T A R Y T I M E S
Volume 66
PERSONAL NOTES
,T. M. BoDTH has been admitted to paitnership of the
well-known insurance agency of Smith, Mackenzie, Hall and
Huntei-, Toronto. Mr. Booth's connection with the company
dates back to lOOf).
C. J. YoRATH, formerly finance commissioner of Sas-
katoon, Sask., has accepted a position with Edmonton, Alta.,
as commissioner of public utilities and assistant finance com-
missioner.
C. B. TOPP, who was appointed in August last to under-
take the administration of the Insurance Act, is well known
in Canada. Prior
to the war he was
a member of the
staff of the Toronto
Mail and Empire
and in August, 1914.
was sent overseas as
war correspondent
for that paper, a
position which he
filled until May,
1 91.5, when he en-
listed. Mr. Topp
returned to
Canada in Decem-
ber, 1918, and was
appointed secre-
tary of the Re-
patriation C o m -
mittee of the Privy
Council, in which
capacity he was
sent to
in 1919.
business
England
When the
of the
committee was
closed in January,
1920, he became a member of the Board of Pension Com-
missioners and has been with the board since that time.
Charles Lee Scovil, who had been with Spencer Trask
and Company, investment bankers. New York, for many
years, as advertising and sales manager, has resigned to be-
come first vice-president of Medley Scovil and Company, In-
corporated. Mr. Scovil was born and educated in Canada.
G. M. BoswoRTH, chairman of the Canadian Pacific
Ocean Service, is now en route to Vancouver, where he will
board the "Empress of Asia," bound for the Orient. Mr.
Bosworth is to make a tour of inspection in Japan, China
and the Philippines, where he will also make the overland
trip to Pekin and visit Korea. The trip will extend over a
period of three months.
Chas. H. Guthrie, who has been in the service of the
Canadian Surety Company for some years past, latterly
holding the position of assistant accountant, has been ap-
pointed to the newly-created office of cashier. John W.
Freeborn, formerly inspector, has been appointed to the
newly created office of supervisor of claims department in
the service of the company.
ONTARIO EQUITABLE HAS MILLION BUSINESS
During the six weeks when the Onta>rlo Equitable Life
and Accident Insurance Co. was writing business in 1920, it
placed $1,053,300 of new business upon its books. At the
end of December gross assets were $174,984, and surplus
$99,632, leaving a net surplus over all liabilities and capital
stock of $36,072
OBITUARIES
LlELT.-CoL. F. W. HiBBARD, K.C., chairman of the
Quebec Utilities Commission, died in Montreal recently
after an illness of many months. He was born in Ireland
in 1865, and came to Montreal in 1885.
James Gilbert Cane, of Toronto, passed away recently
after an illness of only one week. As head of the firm of
J. S. Cane and Company, Mr. Cane was one of the best
known lumbermen in the Dominion, having been engaged
in the lumber trade for more than forty years.
A. B. Smith, former superintendent of construction of
the Great Northwestern Telegraph Company and from 1912
to 1914 manager of telegraphs of the Grand Trunk Rail-
way system, died in Montreal recently. He was 72 years
of age.
Charles Harry Scott, of Egan, Scott and Chambers,
insurance brokers, Ottawa, died on February 16th after a
month's illness. He came to Canada twenty-five years ago,
and five years afterwards entered into partnership with the
above firm. He was fifty years old.
David H. Hays, only brother of the late Charles M.
Hays, former chairman of the Grand Trunk Railway, passed
away at Pasadena, California, recently, in the 64th year of
his age. Mr. Hays had been for some years past in the
real estate and insurance business at Prince Rupert, British
Columbia, but was compelled to retire owing to ill-health,
and took up his residence in California.
UNION TRUST CO.
In 1917 when the Union Trust Co., Toronto, made a
stringent revaluation of its assets, and later James K.
Pickett took char,i:e as general manager, it was generally
considered that the company had taken commendable action,
and the reports since issued justify the contention. The net
profits for last year amounted to $110,141. The combined
capital and guaranteed martgage loans stands at $4,891,376
as compared with $4,721,637 at the beginning of the year,
a net increase of $169,739. A considerable sum was rein-
vested in new mortgages at the prevailing high rates and
the expenses connected with such investments were written
off in the year. The full advantage of the higher rates of
interest on mortg-age loans will be seen in the future earn-
ings of the company.
Out of the net earnings of $110,141 there were paid
quarterly dividends amounting to $70,000, the same as last
year; $13,342 in taxes as compared with $10,446 in the
previous year; $6,632 on account of extraordinary expenses
including the fitting up of new head offices and safety deposit
vaults. The balance of the year's earnings $20,166 was
added to the profit and loss account bringing it up to $96,835.
The trust deposits have increased by $91,358 and now
amount to $1,266,146. Over 36 per cent, of these, or $463,231,
is invested in high class liquid securities such as Dominion,
provincial and municipal securities and cash. The directors
have strengthened the company's position by setting up a
contingent reserve of $50,000, besides making reserve ap-
propriations for depreciation in values of bonds, debentures,
mortgages and real estate.
' At the annual meeting last week the president, Henry F.
Gooderham stated that the year 1920 was marked by activity
and development in all departments of the company's busi-
ness especially so since moving into more commodious of-
fices at the corner of Richmond and Victoria Streets, where
all departments are on the ground floor of the building, con-
veniently arranged for the purposes of the trust company.
The board of directors was further strengthened by the elec-
tion, in addition to last year's board, of two well known and
influential Toronto men in the persons of John B. Laidlaw,
manager of the Norwich Union Fire Insurance Society and
S. R. Parsons, president of the British American Oil Co.
February 18. 1921
THE MONETARY T I M E S
13
|iiiiiiiiliiiriiiiiniiiiii!ii!i[[i[iiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiliiiiniiiimiiinii!imiiii!iiiiiiiiiiiii!iiniiiiiii iiiiiiiiiiiliini
I THE Sterling Bank
i OF CANADA
;aiiiiii:i:iiiiiiiiiiiiiiiiiii{ii«iniiiii:iiii iiiiiiiiiwinimiiiNiiiiiiiiiiiLii • ,
Because of our personal Service policy many clients
have learned to consult us when matters of finance
are considered. And through the close relations
into which such a policy has brought us. we have
obtained an insight into many lines of business
which otherwise would be impossible of attainment.
Head Office
KING AND BAY STREETS, TORONTO
The National Bank of Scotland
Limited
Incorporated by Royal Ctiarter and Act of Parliament. Established \S'i5
Capital Subscribed /5, 000,000 825.000,000
Paid up 1,100,000 5,500,000
Uncalled 3.900.000 19.500,000
Reserve Fund 1 ,000.000 5 000,000
Head Office - EDINBURGH
WILLIAM CARNEGIE. General Manager. GEORGE A. HUNTER. Sec.
LONDON OFFICE— 37 NICHOLAS LANE. LOMBARD ST., B.C. 4
T. C. RIDDELL. DUGALD SMITH.
Manager Assistant Manager
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London, jre
retired on terms which will be furnished on application.
toooPporatdd
- - i&5>
Branches
Thpou^ourt
THE MOLSONSBANK
Capital and Reserve • $9,000,000
OVER 130 BRANCHES
A business man can usuallj' ar-
range a loan with The Molsons
Bank provided he can furnish
good collateral. If you need a
loan consult the Manager of The
Molsons Bank.
EDWARD C. PRATT. Gene
Mana
THE STANDARD BANK
OF CANADA
The Annual (General Meetinp of the
Shareholders will be held at the Head
Office of the Bank in Toronto, on
Wednesday, the 23rd of February next.
at 12 o'clock noon.
By Order of the Board,
C. H. EASSON,
General Manager.
ESTABUSHED 1879
AUoway & Champion
Bankers and Brokers
mbera of Winnipeg Stock Eicha
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on connmission.
Winnipeg, Montreal, Toronto and New York Exchanges
Corporation Trusts
Trustee of Bond Issues
As Trustees, The Bankers' Trust
Company exercises the greatest
care in seeing that Deeds of Trust
given to secure Issues of Bonds
contain all the safeguards neces-
sary for the protection both of the
Corporation and of the Investor.
THE BANKERS'
TRVSTGOMB\NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
14
THE MONETARY TIMES
Volume 66.
LIFE INSURANCE WITHOUT MEDICAL EXAMINATION
(Continued from page 6)
may safely conclude that the experiment they have made
has proven eminently successful.
"In one particular, the British companies pursue a dif-
ferent course from that common in this country, and one
that, perhaps, most of us would hope to see changed to the
American system in the not far distant future. I have
reference to the exceedingly liberal spirit which exists
amongst the actuaries, at any rate, of the various insurance
companies of this continent, and the freedom with which they
exchange any information that comes into their possession,
whether from the records of their own companies or through
any investigation that may be made.
"In consequence of the established custom in the old
country, the details of the regulations in force regarding
non-medical business are not available for the guidance of
other companies. Nevertheless, I wish to acknowledge the
very generous response, within prescribed limits, of the
actuaries of the British companies to the inquiries addressed
to them. We may very well surmise, however, that the safe-
guards that are likely to be imposed by companies not ex-
perienced in this class of business will be more stringent
than the circumstances really necessitate, and more rigorous
than those actually in use by those companies having con-
siderable experience with this system of insurance."
Mr. Reid then outlined the experience in the United
States, where, after the Prudential of Newark had started
on the non-medical examination plan, following the example
of the Prudential of London, the practice of examining appli-
cants grew up gradually. The extent of industrial business
on this continent, has, however, made it necessary to accept
small risks without examination.
Proposed Regulations for Non-Medical Insurance.
Mr. Reid then suggested the following regulations to
govern the development of non-medical business should it
prove acceptable to the companies: —
1. The main point of difference will be that the option
at the outset is not left to the applicant to say whether he
will or will not be examined. If his application comes vrithin
the limits upon which the company accepts risks without
examination, there will be no examination unless specifically
requested on account of some information in the application
which indicates necessity for such further action.
2. The business will, in all probability, be conducted by
a considerable number of companies acting more or less in
harmony, so that no one company will be unduly overloaded.
3. The business will be limited to policies of $1,000 gen-
erally, although this may be extended to $1,500 or $2,000 by
individual companies or in special districts.
4. A report made by an inspector, independent of the
company altogether, will cover habits, occupation and physi-
cal appearance of the applicant, with little or no reference
to the financial circumstances.
5. Limitation of age to 40 or 45.
6. Some of the companies propose to accept married
women without extra or lien. Others will not accept on any
terms, and in at least one case such risks will be accepted
with a lien, depending as to amount and duration upon the
plan of insurance.
7. Chemical urinalysis will be made in the case of male
risks only. Some companies will not require urinalysis even
for male risks.
8. With the precautions taken the companies expect to
obviate the necessity of making a special dividend class.
9. It is expected that a system will be worked out which
will place a cheek upon any applicant applying to a number
of companies for non-medical insurance.
10. One company will insert the clause referred to above
as contained in weekly premium policies now being issued in
Canada making the policy void during the first two years
in the event of the insured, previous to the date of applica-
tion, having had consumption and the other diseases and
disorders specified.
Conclusion
"A general survey of the actual developments of the non-
medical system seems to me to fully warrant a trial of it
on a moderate basis, wath the reasonable expectation that,
both as to age limitation and amount, we may, in the future,
expect a considerable extension.
"It should, undoubtedly, popularize insurance in many
directions, and more especially in the case of female- risks.
It will enable agents to do a profitable business in out-of-
the-way districts, which must now be largely neglected.
There may be no expectation that the cost of the business
will ultimately be reduced, but, as already intimated, it will
shift the cost from the strain of the first year, which is now
so heavy a handicap to the companies in the prosecution of
the business to the limit of their ability.
"Deliberately fraudulent cases should, with the present
standing of the life underwriting forces, be largely elimi-
nated at the outset, and these that are accepted may be much
more successfully resisted in the event of a claim arising
than would be the case if there had been a medical exami-
nation. This is a well established fact in the experience of
the companies using the non-medical system.
"There is one serious drawback. In the discussion on Mr.
NicoU's paper, to which such full refei-ence has been made,
it was pointed out that the examination was almost as much
protection to the applicant as to the office. That is not true
in any bona fide case. In another sense, however, the system
does remove a safeguard which every man should adopt for
himself, but which is usually adopted only when applying
for a policy of life insurance. I refer to the fact that many
men find some defect in their condition only when they have
made appMcation for insurance. The ideal condition would
be an annual examination, but even, as few people will con-
sult their dentist regularly except when trouble arises, so
few people will voluntarily submit to close medical examina-
tion unless there is some form of compulsion.
"No attempt has been made to suggest refinements
which, in any event, would only be guess work, and would
probably militate against the feasibility of the scheme.
Thus, for example, the plan might be limited to limited
pay life and endovpments, or the English practice of a
temporary lien for a few months, or the first year, might
be made. It is undoubtedly a case where, with proper safe-
guards, no seriously unfavorable experience will be realized
and yet a definite trial may result in great benefit to the busi-
ness generally. The first two policy years will doubtless
show the most unfavorable results, but these should not be
allowed to interfere with the prosecution of the scheme to
a point where very definite conclusions may be reached. In
all probability the extra mortality experienced will be offset
by the saving in initial expenses. Even if the ultimate addi-
tional mortality imposes a slight additional burden, but
spread over a period of years, this should not deter any com-
pany from embarking upon a plan which has so many ad-
vantages in other directions. It is the hope of those who are
already prepared to engage in the business or are now en-
gaged in it, that before long all of the companies will have
it in operation."
The Canadian Government Merchant Marine announces
a general reduction in cargo rates between Canadian
Atlantic ports and Great Britain, becoming effective im-
mediately. The former rate in effect for general cargo to
Britain from Halifax and St. John was 50 cents a cubic
foot, or $1 per hundred pounds; the new rate will be 40
cents a cubic foot, or 75 cents per hundred. General cargo
covers practically all goods handled from this country to
the Old Land. Exports only are affected.
February 18, 1921
THE MONETARY TIMES
15
Bank of New Zealand
ESTABLISHED IN 1861
Bankers to the New Zealand Government
CAPITAL
Psid-Up Capital ($13,528,811) and Reurre Fond
($12,166,250) $25,695,061
Undivided Profit. 713.039
Aggreiale Aiieti al 3llt March. 1920 257,500.944
Head Office:
WELLINGTON
NEW ZEALAND
H. BUCKLETON
General Manager
THE UAN'K OF NEW ZEALAND has Branches at
Auckland, Wellinsion. Christchurch, Uunedin. and 203 other
places in New Zealand: also at Melbourne and Sydney >
(Australia), Suva and Levuka (Fiji). Apia (Samoa), and
London,
The Bank has facilities for transacting every description
of Banking Business. It invites the establishment of Wool
and other Produce Credits, either in sterling or dollars, wiih
any of its Australasian Branches,
LONDON OFFICE: 1 Queen Victoria Street, Mansion House, E.G. 4
CHIEF CANADIAN AGENTS :
Canadian Bank of Commerce Bank of Montreal
rHoMEBANKi^CANADAl
INDUSTRIAL PROMOTION
Loans advanced at current rates upon any
of the forms of security reconized as ade-
quate in banking practice. Prospects for
the extension or development of industry
invited for consideration.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s.s
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
head ofkicb. weyburn, saskatchewan
Branches in Saskatchewan at
Weyburn. Yellow Grass, McTaggart, Halbrite, Midale
Griffin. Colgate. Pangman, Radville. Assiniboia, Kenson,
Verwood. Readlyn. Tribune. Expanse. Mossbank, Vantage.
Goodwater. Darmody, Stoughton. Osage. Creelman and
Lew van.
A GKNKRAL BANKING BUSINESS TRANSACTED
H. O. POWELL, General Manager
TH€ MCRCMANTS BANK
Head Oftice : Montreal. OF CANADA
Established 1864.
Capital Paid-up, $10,029,622 Reserve Fund and Undivided Profits, $9,475,585
Total Deposits (30th October, 1920) - Over $170,000,000
Total Assets (30th October, 1920) - Over $209,000,000
Board of Dirtctora :
Sir K. OrrOek-Lkwis, Bart.
Hon. C. C, Ballantyne
V. Howard Wilson
SIR H. MONTAGU ALLAN
Farquhar Robertsqn
Geo. L, Cains
Alfred B. Evans
Vice-President
Thomas Ahearn
LT.-COL. J. R, MOODIE
Hon. Lornk C. Webster
A, J. DAWES
E, W. Kneeland
Gordon M. McGregor
General Manager • - - D, C. Macarow
Supt, of Branches and Chief Inspector : T. E, Merkett
Genei.^1 Supervisor - - - W. A. Meldrum
AN ALLIANCE FOR LIFE
Many of the large Corporations apd Their banking connection is for life —
Business Houses who bank exclus- yet the only bonds that bind them to
ively with this institution have done this bank are the ties of service, pro-
SO since their beginning. gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramsay and C. J. Crookall, Agents
London, England, Office, 53 Cornhill : J. B.Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank. Limited, The Royal Bank of Scotland
THE MONETARY TIMES
Volume 66.
BANK BRANCH NOTES
THE TRADE SITUATION
Announcement has been made by the Royal Bank that
in future the business of the institution in Alberta will be
supervised from Calgary. This means that a number of offi-
cials of the bank will be tra-nsferred west from Winnipeg,
and that a new department will be created in Calgary. The
Royal Bank has at the present time 47 offices in Alberta, and
with the opening of a supervisoi-'s department in Calgary,
it is believed tha.t this number will be increased in the near
future. The bank has 107 offices in Saskatchewan. S. L.
Cork, who has been for several years the assistant super-
visor in Winnipeg, will be in charge of the new office in Cal-
gary. This will, however, be a temporary arrangement, and
in the course of a few months he will return to Winnipeg.
The ba.nk has not yet decided who will be in permanent
charge of the Calgary office. The Royal Bank has three
offices in Calgary, with suitable accommodation already foi
a superintendent's department. J. A. Walker and J. G. Nick-
erson are in charge of the main office of the bank there.
Canadian B&nk of Commerce announce the following
changes: A. E. Arscott has been appointed assistant manager
at the Ottawa branch; F. S. Stevens and W. S. Bogue, both
formerly on the Victoria staff, have been transferred to
Mexico City a^nd New York, respectively; G. A. Stubbins, ac-
countant at Lloydminster, Sask., has been moved to the
Shaunavon branch; A. T. W. Tanner, of the Wilcox, Sask.,
branch, appointed to Lloydminstjr; D. G. Kennedy, who re-
cently returned to Halifax from the outposts of Newfound-
land, has been moved to Ontario, and promoted to the man-
agement of the Sault Ste. Marie branch; D. B. Falkner, in-
spector of Maritime branches, recently returned to the de-
partment after a sojourn of a month or more in St. John's,
Newfoundland; C. E. Stock, of the Guelph branch, ha-s been
transferred to the Walkerton branch; J. I. Coil, of St. John,
N.B., has been transferred to the Halifax branch.
The Provincial Bank will shortly move into its new offices
at Loiselleville, Ont.
The Bank of Hamilton are now occupying their new
premises at the corner of Ouellette Ave. snd Chatham St.,
Windsor, Ont.
The Imperial Bank are planning to erect a new branch
in Harrow, Ont.
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended February 11, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
Date.
c
O
6
a
<
a
w
03
"o
o
IM
Oi
Feb. 11 . .
..11
19
7
1
2
3
0
2
1
46
21
Feb. 4 ..
-.6
15
0
0
4
4
13
0
0
42
18
Jan. 28 . .
..12
20
4
1
1
4
3
1
0
46
Jan. 21 .
...15
35
6
3
5
1
4
2
0
71
20
EXCHANGE QUOTATIONS
Quotations of exchange on the United States and Euro-
pean countries as at February 17, 1921, with comparisons,
are given below. The Canadian figures are supplied by the
Imperial Bank of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
] Par. Can., Feb. 17. N.Y., Feb. 17.
London, cheque . . . 4.8600 4.49 3.90%
France 19.30 8.59 7.36
Germany 23.82 2.01 1.70
Belgium 19.30 8.96 7.06
Italy 19.30 4.26 3.68
Switzerland 19.30 19.20 16.85
United States 1.00 14iiii; P
The easing off in money conditions is already having
its effect on industry, and credit is now available in fair
volume. Credit at this season of the year is probably more
in demand than at any other period, and as the banks are
the chief dispensers thereof, mercantile borrowers in a num-
ber of instances, have to depend upon them for their yearly
credits, some of which are already reported to have been
made at 6V2 per cent. Commercial paper has been discounted
at 6% to 7 per cent, as to names and nature of account. A
few gilt-edge notes have been discounted at 6 per cent.
Call loans are steady at 6% to 7 per cent. Quite a few real
estate loans have been put through recently at 7 to IV2 per
cent. Nothing, said a large lender outside of the banks, can
be had under 7 per cent.
A slight improvement in business is reported by "The
Trade Bulletin," Montreal, last week. Orders have increased
a little in both woollens and cottons, due to prices getting
down to more normal levels. A large business has been
done by retail clothing establishments, prices having been
sufficiently reduced to insure a big turnover. Quite a few
orders have been received from the Lower Provinces, Mani-
toba, and Saskatchewan, consisting of underwear, chiefly
woollen, and singular enough, sorting goods of heavy texture.
A wholesale dealer said: "About this time we usually begin
to ship spring goods, but evidently country storekeepers
have bought sparingly of last year's fall and spring goods,
owing to high prices, which they have run out of, and can
now be bought at lower prices." A traveller who has just re-
turned from a trip through Ontario states that the stores in
that province were never known to have such light stocks of
dry goods at this season of the year, as it is estimated they are
10 to 15 per cent, smaller than ever before known.
WEEKLY BANK CLEARINGS
Te following are the Bank Clearings for the
February 17, compared with the corresponding
ye&r: —
Week ended Week ended
Feb. 17, '21. Feb. 19, '20.
Montreal $ 99,953,054 $127,850,545 —
Toronto 102,743,134 98,361,277 +
Winnipeg 45,399,111 41,106,090 +
Vancouver 12,918,593 15,200,535 —
Ottawa 7,228,305 7,916,738 —
Calgary 5,597,251 7,561,791 —
Hamilton 5,713,568 5,763,132 —
Quebec 6,198,023 4,990,482 +
Edmonton 4,277,428 4,946,521 —
Halifax 3,074,505 4,162,415 —
London 2,713,846 3,236,461 —
Regina 3,149,092
St. John 2,501,324 2,879,216 —
Saskatoon 1,620,290 1,797,020 —
Moose Jaw ' 1,162,771 1,350,212 —
Brantford 1,177,901 1,094,023 +
Brandon 632,258 590,624 -f-
Fort' Willip..m 844,835 764,940 +
Lethbridge 651,246 727,864 —
Medicine Hat .... 352,217 371,018 —
New Westminster 631,323 568,945 +
Peterboro 889,670 651,018 +
Sherbrooke 1,236,777 899,537 +
Kitchener 923,554 990,377 —
Windsor 2,668,107 2,514,873 -f
Prince Albert . . . 284,765 360,353 —
Totals $311,393,856 $336,650,007 —
Moncton 940,115
week ended
week last
Changes.
127,897,491
4,381,857
4,293,021
2,281,942
688,433
1,904,540
49,564
1,207,541
669,093
1,087,910
522,615
377,892
176,730
187,441
83,878
41,634
79,895
76,618
18,801
62,378
238,652
337,240
66,823
153,234
75,588
$25,262,151
February 18, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 1817)
PAID UP CAPITAL - - - - ^gttU ------$ 24,655,500.00
RESERVE FUND - C^^^ ------ 16,750,000.00
RESERVE LIABILITY OF PROPRIETORS - ^M^^S^I^f ------ 2465500000
V4^^^^r^^^^ ------$ 66,061,000.00
AGGREGATE ASSETS 30th SEPT., 1920 ^^iS^j^-^JSiilJ/ --.... $362,338,975.00
Sir JOHN RUSSELL FRENCH. K.B.E., General Manager
357 BRANCHES and AGENCIES in the Australian States, New Zealand Fiji. Papua (New Guinea), and London. The Bank transacts every description
of Australasian Banking Bjsiness. Wool and other Produce Credits arranged,
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET. E.C.2.
AOBNTs: BASK OF MONTREAL. ROYAL BANK OF CANADA
BUSINESS FOUNDED 1795
INCORPORATED IN CANADA IS97
AMERICAN BANK NOTE COMPANY
ENGRAVERS AND PRINTERS
BANKNOTES, BON DS, MUNICIPAL DEBENTURES, STOCK
CERTIFICATES, CHEQUES AND OTHER MONETARY DOCUMENTS
Special Safeiiuards Against Counterteiting Work Acceptable on all Stock Exchanges
Head Office and Works: OTTAWA 224 Wellington St.
BKANCH OFFICES
TORONTO
19 Melind^ Street
WINNIPEG
Union Bank Btdg.
GUORCiH El)WAR[>S
H Percival Edwards
A. GeoFFRUV Edwards
T, J. Macna.mara
K. A, Mai'i-
F,C,A, Arthur
W. I^oMEROY Morgan
Oswald N. EnwAnns
, EDWAdns, F.C.A.
W. HkrdertThon
CIIARIES E. Willi
J, L. Atkinson
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO , ,
CALGARY ..
VANCOUVER
WINNIPEG .,
MONTREAL
CORRESPONDENTS
HALIFAX, N.S ST. JOHN, N.B.
LONDON, ENG, PARIS. FRANCE,
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK, USA
—RICE & FIELDING, INC.-
FOREIGN FREIGHT FORWARDERS, CUSTOMS
BROKERS AND DRAWBACK AGENTS
81 VICTORIA ST.,
TORONTO
1 Coristine Bld
.MONTREAL
CODES
Western Union
A BC, Sth «i6th editions
OTHER OFnCES
H Broadway,
NEW YORK
•to Central S
BOSTON
Enqullles sollcHtd In connection wHh either Export or Import huaineM
A NEW BOOKLET
" Voluntary Trusts
and their Uses"
""THIS is the title of a Booklet
we have just issued setting
forth a plan adopted by many
successful business men to make
their surplus funds secure
against loss. It is written from
the layman's standpoint in plain
everyday English, avoiding legal
terms, and phraseology.
Write to-day for a copy
THE
TOROiSTOGEiSERALTRUSTS
CORPORATIOiH
Bay and Melinda Streets - Toronto
THE IMONETARY TIMES
Volume 66.
Banking Opportunities and the Aftermath
Part Played in War Loan Campaigns Should Be Followed Up By Guidance of Depositors
Regarding Investments — Expansion of Business Also Means New Firms and New Accounts
Bv "SEMPER PARATUS"
IT cannot be said of any class in the community that during
the wai- it did not respond to the demands of the situation,
but the real service given by the bankers during those trying
years has to a lai-ge extent escaped the notice of the public.
Not only did the members of the bank staffs respond nobly to
the call to arms, but those who for one reason and another
were unable to go to the front did a splendid work at home.
I refer particularly to the floating of the w'ar loans. Dur-
ing the several war loan drives the bankers rendered invalua-
ble aid to the salesmen in making those drives a success.
Every bond the banker advised his client to buy meant the
withdrawal of a deposit, but he was far-sighted enough to see
that this temporary loss to his branch was a permanent gain
to the country as a whole, and that in the long run he would
participate in that gain. But his work in the investment field
is not over. It has only just begun.
Ninety Per Cent. Were New to Bonds
It is not an exaggeration to say that prior to the float-
ing of the war loans 90 per cent, of the purchasers of those
loans had never seen a bond, much less owTied one. The sev-
eral campaigns did a splendid work in educating those people
to the advantages of safe investments other than mortgages.
The purchasers' of Victory bonds in the last few years are still
saving money, but no Victory loan salesman is coming: around
to suggest that they buy bonds. Our monthly bank state-
ments testify to the amount of this money that is now held
by the public awaiting more profitable investment. This
amount will be tremendously augmented when in 1922, 1923
and 1924 the Victory loans mature and are paid, as we are
told they will be, as they mature. The figures for these ma-
turities are as follows: —
December 1st, 1922 $194,842,150
November 1st, 1923 194,881,800
November 1st, 1924 106,365,100
Many Are Persuaded to Sell
The owners of these funds, and their names appear to be
pretty well kno'sxTi to the financial fraternity, are being be-
sieged by salesmen for all sorts of "get-rich-quick" stock pro-
motions and many investors have fallen victims of the argu-
ments of these optimists. It is here that the bankers' respon-
sibility comes in. Usually the damage is done before the
banker knows anything of the transaction. His first intima-
tion of it is when a cheque on his savings department is pre-
sented for payment. The banks should advertise more widely
that they are in a position to sell bonds to those wishing to
buy, and also to obtain authentic information and give worth-
while advice on any other investments which their clients con-
template making. They thus place themselves in a position to
protect the hard-earned savings of their nepositors from the
"100-to-l shots" that are being offered to them under the
appellation of "sure things." We cannot too strongly urge
that this advertising be increased, both through the press and
by direct methods. It is a duty and a profitable duty that the
banks owe to the public.
Bank Should Advise Investors
A number of the banks have established bond departments
to look after this business. In other banks a connection is
made with some reputable bond house so that the country in-
vestor has exactly the same investment opportunities and ad-
vantages as the moneyed man in the city. The country
banker should make a study of municipal and government
bonds so that he can give real advice as to the relative value
and suitability of the various offerings to the client's needs.
To do this requires at least a superficial knowledge of munici-
pal finance that will enable him to pass judgment on munici-
pal statistics. This knowledge enables the banker to talk
and advise his customer intelligently. He should also keep
himself thoroughly posted on the main industrial stocks and
bonds that are being offered. In this connection there should
be some restriction on the use of the words, "First mortgage
gold bond," which are used to dazzle the eyes and dim the in-
telligence of the man to whom "First mortgage," "gold" and
"bond" are the hall-marks of safety, and who is apt to take
these expressions at face value instead of lookinjg further into
the real security behind the proposition. It is much to the
credit of several of our financial journals that they have done
much to protect the public from the many "promotions" that
are being put out almost daily, but there are still many people
who do not read these papers but who can be readily reached
by the banker in their home town. All the "blue-sky" laws in
the world will not stamp out the fake promotions half as quickly
as the determined opposition of the banking fraternity to
everything that will not pass the acid test of their good judg-
ment.
To Help Along New Business
There is another field of usefulness and incidentally of
profit which the business activities of the war have opened up
for the banker. For the last five years the demand for goods
regardless of price has not only stimulated many of the old-
established factories to increase their equipment but has re-
sulted in the establishment of many new factories in almost
every line. These new concerns were started for the most
part by employees of the older companies, who saw, or
thought they saw, in the situation an opportunity to start in
business for themselves with every likelihood of success. The
owners of these new plants were in the majority of cases com-
paratively young men who had acquired a lot of practical in-
formation about the business, had saved from their earnings
a few thousand dollars, and were blessed with sufficient nerve
and self-confidence to make a real start in life. These men
are willing to work, and work hard, for success. They deserve
success, but unless .they are carefully watched and diplomati-
cally advised, they are very apt to founder on one of the many
rocks that lie in their paths during the period of reconstruc-
tion or rather business reorganization. It is here that the
banker's duty and opportunity for profit comes in. If he can
pull these new concerns through the next year he will not only
be making good, satisfactory, and, in time to come, profitable
accounts for his oflice, but he will be doing a real national
An All-Round Business Adviser
In the old days a banker was looked upon as a reliable and
competent adviser in almost every kind of business. Latterly
the banker has lost this position. I say this with full knowl-
edge of the conditions whereof I speak. It is a most regret-
table condition. How often have we heard people speak of
"business men and bankers." Bankers through their oppor-
tunity to see behind the scenes in so many different kinds of
business should be the very best business men we have, instead
of being, as in so many cases they are. the mouthpieces of a
head office many miles away, or the buffer between that head
office and its local customers.
Becoming a competent adviser is not a gift bestowed on
a man with his appointment to the managerial chair. It is
the result of study of the business of his customers through
practical talks with the customers supplemented by his o\\ti
observation. The business man worth while is always ready
February 18, 1921
THE MONETARY TIMES
Make Your Money Work to Earn
More Money for You
Make it «
. per
in a Sa
why refus
I wouldn't refus
ings Account instead of less.
ages, would you? Then
le interest on your Savings Account?
Ifs as simple as A B C.
The Union Trust Company will pay you interest at 4% perannum.
compounded regularly. Come and open your account here. If you
cannot conveniently call, open your account by mail. Deposits
promptly acknowledged and withdrawals by mail accurately and
safely despatched.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS
Winnipeg TORONTO London, Eng.
Every Man Intends to Make a Will
But when on
hole in foui-
ies hard toe
That is why
That is whys
Tha
ntendeil.
vhy
feels fit and eager for the day's work, can r
and help carry a canoe around a threc-i
nteniplate the idea of a WILL with any s<
n many men die without making any wiU.
I many a comfortable little fortune is wasted in legal tangles.
1) much property gets into hands for which it was never
nan has rather decided views about the disposition of the wealth
that he has created and sa\ed. And he can enfr-rcc his wishes by a
carefully drawn will and a wise choice of an executor. He can choose
no executor who will administer his estate more prudently and
faithfully than—
The Canada Permanent Trust Company.
Put y.,
elTctt today.
THE CANADA PERMANENT TRUST COMPANY
Paid-up Capital
Sl.OOO.OOO
18 TORONTO STREET
TORONTO
■Manager, Ontar
"From Rags to Writing Papvr
The Rag Receiving Room.
" RAGS »
Hi>rh Grade writing: papers are made from pure white
llO ^ 0// Kttrment cuttinj?. drawn from the manufacturing:
rpTll plants of the world— these are sorted, classified and
W\\ shipped to the mill in uniform qualities. Expert
R-rading- of rags ensures superiority of paper stock.
,4 Brochure of maiiufacturinff illustrations — "From
liagn to Writivo Paper"— unit be sent ov request.
ROLLAND PAPER COMPANY
Limited Montreal
Mills at St. Jerome. P.Q.. and Mont Rolland. P.Q.
f/if/h Urade paper ttiaktrti si'/lce 1SS2.
A Newspaper Devoted to
Municipal Bonds
'T'HERE is piibll.shed in New N'ork Cily a daily
'■ and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond offerings.
Write for free specimen eopie*
THE BOND BUYER
67 Pearl Street New York, N.Y.
/^OMPANY controlling large volume
of Insurance and well represented
all over the West, requires additional
general agencies for Fire, Casualty and
Hail Insurance Companies in Western
Provinces.
Apply Box 385, Monetary Times, Toronto,
or Box 502 Monetarv Times,
1206 McArthur Building, Winnipeg.
The most iiiiportatu (lociiiiieiit a person ol larj;e or small
means is called on to prepare is his
LAST WILL AND TESTAMENT
It means the happiness and welfare of those most dear.
Ask for Booklet : " Make Your Will."
CAPITAL. ISSUED AND SUBSCRIBKD . .81,171,700,00
P.\ID-tiP CAPITA!, AND RESERVF-: 1,172,00000
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE : WINNIPEG, CAN.
HKANCHES:
The Trustee Company of Winnipeg Ltd.
322 MAIN STREET
M. J. A. M. DE LA GICLAIS, ManaKing Director.
Sec us for investments in allocated or guaranteed loansat attractive
rate^ of interest.
Our Agency Department is very active. While out of town, leave
your affairs in our charge.
The Security Trust Company, Limited
Head Office - - Calgary, Alberta
Liquidator, Trustee, Receiver, Stock and Bond Brokers,
Administrator, Executor. General Financial Agents.
W. M, CONNACHER Pres. and Managing Director
THE MONETARY TIMES
Volume 66
to talk "shop." He is also willing to have his banker make
himself familiar with his factory, even to understanding the
work of the various machines. If the banker will take the
trouble to really inform himself about his customer's plant the
knowledge thus obtained will enable liim to get his customer's
full confidence and to discuss the details of the business intelli-
gently. The banker can combine that knowledge with his
knowledge of general business conditions and his advice and
directions will be followed much more readily than if he were
the outsider that so many bankers are to-day.
It stands to reason that the practical man with little or no
knowledge of business practices, conditions and storm signals
must have competent direction in these matters if he is to suc-
ceed, and it cannot too strongly be impressed on the banking
fraternity the real need for and the tremendous benefits to
be derived from closer study of the customer's business and
more sympathetic co-operation between the banker and his in-
experienced customer. This is especially requisite in these
days when many new businesses are going to have a long,
hard fight before they are on a really solid footing.
COMMERCIAL SECURITIES CORPORATION, LIMITED
A charter has been issued to the Commercial Securities
Corporation, Ltd., Winnipeg, with an authorized capital of
$500,000. The incorporators are: Captain William Robjnson,
formerly president of the Northern Crown Bank, and director
in many corporations, including the Royal Bank of Canada,
Northern Trusts Company, Northern Mortgage Company,
etc.; George R. Crowe, of the British Empire Grain Com-
pany, and director of the Royal Bank of Canada, Great West
Life Assurance Company, Canadian Fire Insurance Company,
etc.; Alexander Brown, of the well-known limiber fimi of
Brown and Rutherford; James Auld, barrister, of Hunt, Auld
and Warburton, and a director of the Fire Insurance Company
of Canada; C. H. McFayden, insurance and financial broker.
The incorporators are all well-known business men, with
interests in many of the leading financial institutions of the
west. The powers granted are wide, covering a general finan-
cial business, and dealing in commercial securities.
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways for the month of Jan-
uary:—
Canadian Pacific Railway.
1921. 1920. . Inc. or dec.
Janua.ry 7 $3,303,000 $3,171,000 + $ 132,000
January 14 3,276,000 3,331,000 + 55,000
January 21 3,196,000 2,837,000 -t- 359,000
January 31 4.433,000 4,330,000 + 103,000
Tot&l $14,208,000 $13,669,000 -|- $ 649,000
Canadian National Railway.
January 7 $1,814,057 $1,642,208 + $ 171,849
January 14 2,168,969 1,864,220 + 304,749
January 21 1,996,701 1,599,643 + 397,058
January 31 2,802,112 2,161,491 -|- 640,621
Total $8,781,829 $7,267,562 + $1,514,277
Grand Trunk Railway.
January 7 $1,958,441 $1,568,805 4- $ 389,636
January 14 2,088,691 1,682,809 + 405,882
January 21 1,907,473 1,567,103 + 340,370
January 31 2,923,093 2,317,835 -t- 605,2.58
Total $8,877,698 $7,136,552 -|- $1,741,146
PULP AND PAPER ASSOCIATION ANNUAL
The annual meeting of the Canadian Pulp and Paper
Association was held in Montreal, January 20-21. It was
preceded on January 19 by a meeting of the woodlands sec-
tion, which gave special attention to forest fires, the Na-
tional Railways coming in for some criticism.
P. B. Wilson, vice-president and general manager of
the Spanish River Pulp and Paper Mills, Sault Ste. Marie,
was elected president, and George M. McKee, general man-
ager of the Donnacona Paper Company, Ltd., Donnacona,
Que., was elected vice-president of the association. George
Chahoon, the retiring president, in his address said that
government control of the industry had not been wise.
Prominent speakers were Sir Henry Drayton and Sir Arthur
Currie.
AN OPTIMISTIC VIEW OF BUSINESS
"Viewing both the past and the future in proper per-
spective, the beginning of 1921 affords solid grounds for
optimism regarding business and financial conditions both in
Canada and abroad," says February Investment Items, is-
sued by the Royal Securities corporation. "It is our opinion,
and fortunately one which we believe is shared by many
others, that long before the close of this year, 1921, the
entire commercial world, and particularly Canada, will have
completed a widespread re-establishment of profitable com-
mercial and industrial activity.
"Superficially, unfavorable factors would still seem to
be in the ascendant. General trade is contracting in both
volume and rapidity. Some few commodities are still in
process of price readjustment. Retail and wholesale liquida-
tion is regarded in many quarters as yet incomplete. But
fundamental economic factors of great potency are silently,
but none the less surely, making for bettennent. Liquida-
tion in the great majority of commodities has been drastic
and is complete. Living costs have thereby been brought
nearer the buying power of the average consumer. Mark-
ing down of wages and of raw materials is beginning to
compensate the industries for reduced selling prices. Costs
and profits will shortly be on a normal, stable basis for the
first time since 1914. Business will proceed actively and
along sounder lines than during the last four or five years, a
period characterized in all too many cases by personal and
corporate extravagance and inefficiency.
"Signs are not wanting that the era of governmental
meddling with business is ended, and that taxation measures
are to be readjusted on a business-like basis. With the safe
passing of the danger-point in December last, the credit
situation has shown decided improvement. Money for legiti-
mate business undertakings is working gradually easier.
"European skies are clearing. Too much stress cannot
be laid on the improvement in the financial and political out-
look abroad, an improvement signalized by the rapid and
sustained improvement in sterling exchange. The conflicts
in Europe, which were an aftermath of the great war, have
practically ceased. There has been measurable progress to-
wards sympathetic understanding of common interests be-
tween all the nations of Western Europe. The final settlement
of the reparation problem will be a long step forward. The
European countries are steadily, if slowly, returning to a
normal state of productivity. Limitation of trade possibili-
ties, which resulted from the extreme shortage of shipping,
has disappeared. Vast non-productive expenditures, in-
cidental to war and to the after-war rehabilitation of great
armies, are rapidly ending.
"The brighter outlook at home and abroad has been re-
flected in a definite upward move in the security markets
from the unduly depressed levels touched in December, 1920.
In short, the world is twelve good months nearer the restora-
tion of normal peace time functioning than it was a year
ago."
February 18, 1921
THE MONETARY TIMES
21
INTEREST
RETURN
INVEST YOUR SAVINGS
in a 5j^% DEBENTURE of
The Great West Permanent
Loan Company
SECURITl'
Paid-up Capital $2,413,018.81
Reserves 1,050,000.00
HEAD OFFICE, WINNIPEG
BRANCHES: Toronto, Retina, Calgary,
Edmonton, Vancouver, Victoria ; Edinburgh,
Scotland. i
SIXTY-FIVE YEARS
is a long time in the history of this young Canada of ours, yet during
all that period we have been safeguarding and assisting in the increasing
of the savings of many thousands of Canadians. The steady progress
the Corporat'on has made bears testimony not only to the confidence
investors have in this old institution, but also to the unexcelled facilities
we'extend to depositors.
Interest allowed at
THREE AND ONE-HALF
per cent, per annum, paid and compounded h^If-yearly,
The Corporation makes a special feature of Savings Accounts, and
welcomes the small depositor.
Canada Permanent Mortgage Corporation
14-1& TORONTO STREET
TORONTO
id-up Capital $6,000,000.00
serve Fund (earned) S. 750. 000. 00
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building. Lon^Jon. Canada
Interest at 4 per cent, p.iyable half-yearly on Debentures
T. H. PURDOM. K.C., President NATHANIEL MILLS. Manager
The Hamilton Provident & Loan Society
Head Office, Kins Street, Hamilton. Ont.
Capital Paid-up, $1,200,000. Reserire Fund and Surplus
Profits, $1,280,570.59. Total Assets, $4,764,339.21.
TRUSTEES AND EXECUTORS are aulhorizcd by Law to invest Trust
Funds in the DEBENTUHES and SAVINtiS DEPARTMENT of this
Society.
GEORGE HOPE. President 1). M CA.MERON. Treasurer
THE
Ontario Loan
& Debenture Co.
LONDON Incorporated 1870 Canada
CAPITAL AND Undividbd Profits .. $3,900,000
510/ SH
2/0
ORT TERM (3 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
5^1
JOHN McCLARY. Preside
A. M. SMART. Manager
/^VER 200 Corporations,
^^ Societies, Trustees and
Individuals have found our
Debentines an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office. No. 13 Toronto Street
Capital Account. !!«Ji4..'..-.0.00' Reserve Fund. S67O.OOO.00
Total Assets. 9.!,','I9,1.V1.««
President. WELLINGTON FRANCIS. Esq.. K.C.
Vice-President, HERBERT LANGLOIS. Esq.
Debentures issued to pay 5%. a Legal Investment for Trust Funds.
Deposits received at 4% interest, withdrawable by cheque.
Loans made on improved Real E^trtte on favorable terms.
WALTER GILLESPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
S20 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investuieiil in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inquiries Invited
Gcnrral Manager LIt'ut.-t'ol. «. II. DIIKRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Admioistrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office
Swift Current, Saskatchewan
JOHN R LITTLE. Managing Director
THE MONETARY TIMES
Volume 66.
BUILDING PERMITS AGAIN DECLINE
SUBSTANTIAL SURPLUS FOR DOMINION IN JANUARY
December Figure Twelve Per Cent. Under Previous Month
and Nine and a Half Per Cent. Below a Year Ago
BUILDING permits issued in fifty-six cities, showed a
further decrease during December 1920, as compared
with the preceding month, the total value of building per-
mits falling from $5,288,321 in November to $4,654,479, a
decline of $633,842, or practically 12 per cent. New Bruns-
wick, Alberta and British Columbia registered increases in
this comparison, that of $359,550, in the last-named being
the most decided. Of the decreases in the remaining pro-
vinces, that of $777,722 in Ontario was the largest.
As compared with the figures for the corresponding
month in 1919 there was a decrease of $489,699, or 9.5 per
cent., the value for December, 1919, having been $5,144,178.
DEPARTMENT
OP LABOUR
rlGURES
Nova Scotia..
•Halifax
New Glasgow
*Sydney
Nsw Brunswick..
Fredericton . . . .
* .Vloncton ... .
•it.John
*Sherbrooke.
•Three Rivers
•Westmount
Belleville..
*Brantford .
Chatham. .
'Fort Willia
Gait.
•Quelph
*Hamilton
'Kingston
'Kitchener
•London
Niagara Falls.
Oshawa
'Ottawa
Owen Sound . .
'Peterborough -
'Port Arthur ..
•Stratford
•St. Catharines
•>t. Thomas....
Sarnia
Sault Ste
' Toronto. .
Welland..
Mari<
•Brandon
St. Boniface.
* Winnipeg
.ASKATCHEWAN .
* Moose Jaw. . .
•Regina
•Saskatoon ...
Alberta . . . .
'Calgary , . .
'Bdmonton
Lethbridge
.Med" "
Hat.
British Coluibbia..
Nanaimo
' New Westminster
Point Grey
Prince Rupert..
South Vancouver.
•Vancouver
'Victoria
Total-56 cities
'Total— 3.'! cities....
86.725
3,500
54.225
29.00C
930.340
612,810
119.840
1,200
140.300
26.200
29.890
S.SO
23,520
6,625
33.450
2.000
43,390
161,775
8,920
3,295
238,895
16.450
86,900
143.425
3,000
115,760
5,100
6,236
44.048
6.675
.S6,353
8,280
1,816,937
9,825
116,405
8,250
283,877
6,800
17.827
259,250
197,820
33,470
105,350
59,000
136,875
70,500
56.100
9,925
52,070
148,075
53,045
875.715
672.900
80.660
Nil
28.500
1,375
92,280
2,187,642
2,000
5,230
5,200
1,825
Nil.
4,200
192,550
1,655
1„320
117,.590
66,300
2,600
92.700
4,000
392,724
4,755
355
19,199
Nil.
18,830
5.000
1,117,083
4,045
1 15,0,50
13,431
57,315
6,365
43,800
7,150
226,250
203,400
8,900
9,900
4,050
842,155
33,390
320.905
505.360
828.151
658.401
91,150
Nil.
15,600
15.800
47,200
850
500
4,100
180,750
143,885
17,380
431,200
75,250
112,400
118,575
Nil.
3.243
1.714
1,455
29,125
64,050
30,439
575
158,610
7,160
2,000
149,450
90,855
48,900
12.400
29,555
54,350
34,000
19,600
Nil,
750
337,843
18,500
9,500
74,450
45,310
12,280
118,453
59,350
National Expenditure Showed Big Reduction Last Month —
Revenue Was Also Lower — Net Debt Reduced
by $5,495,440
A SUBSTANTIAL surplus of revenue over expenditure is
shown in the January financial statement of the Do-
minion government, but receipts are about $9,000,000 lower
than in the previous month. For the ten months of the
fiscal year the Dominion has collected almost $100,000,000 in
excess of the previous period, while expenditures have in-
creased only $42,.500,000.
There has been a substantial reduction in the gross debt,
but the net debt has increased as a result of the manipula-
tion of the various assets which are taken into consideration
when calculating the net debt. Last month there was a de-
crease of about $5,495,449 in the net debt, but as this ac-
count is subject to so many changes the reduction has no
particular significance. The following are the details of the
government statement: —
PUBLIC DEBT
LlABILlTIFS
Funded Def
Payable
in London
do in New York
Temporary Loans . .
Bank Circulation Redemption Fund..
Dominion Notes
Savings Banks—
Post Office Savings Banks
Dominion Government Savings Bar
Trust Funds
Province Accounts
Miscellaneous and Banking Accounts
Total Gross Debt.
NVESTHENTS—
Sinking Funds
1920 1921
S386.254.484 13 $476,665,578 02
237,318,758 68 323,410,294 66
135,873,000 00
456,407.064 96
5.959.083 15
299.487,404 03
135.873,000 00
96,838,000 00
6.311,522 76
297,470,730 50
31,436,143 79 29,537,808 36
10.857.255 63 1 9.796,134 75
12,663,828 23 13,437,025 24
11,920,48120' 11,920.48120
46.833 632 27 39,453,979 86
3323,087,801 -0 3049,445,117 19
148.9.35,725 45 153,255,283 36
959,793,365 78
: Assets
566,204,437 77
24.966,054 97
148.935,725 45 ! 153,255,283 36
2,296,327 90 2,296,327 90
959,793.365 78
1130.710.232 58
566.204.437 77
746.722.104 00
Rev. and E.\p. on Acc.
OF Consolidated Fn.
Month of
Jan.. 1920
Total to 31st
Jan., 1920
Month of
Jan., 1921
Total toSlst
Jan.. 1921
Revenue—
S cts.
16,135,304 38
3,063,847 29
1,700,000 00
3,643,883 56
1,059,513 73
5,746,256 62
1,734.646 99
21.886 42
1,160,849 70
S cts.
133,221.169 23
34.421 .890 3-.i
16,700.000 00
38,311,868,13
12,310.430 10
31,012,462 08
7,245,132 64
1,010.410 78
13.997,548 00
S cts.
8,031,220 38
2.124.821 11
2.000,000 00
2.006,178 62
7,628,724 84
3,985,518 73
6,662,738 35
41.709 50
6,999,980 69
* cts
Pbc. VVks..Rys.&Cs.
War Tax Revenue-
Inland Revenue.
Business Profit Tax
Income Tax
Other War Tax Rev.
Other Revenue Accts
38,435 927 62
65,106,048 82
29,708,795 45
26,399,025 09
1.189,791 40
30.743.609 41
Total
34,266,188 69
288,230,911 28
39,480,892 22
383.835,567 29
Int. on Public Debt..
1,296,474 78
524,043 87
2,295,754 75
890.862 98
-624,245 15
217,720 55
10,670,015 72
5,360,892 93
13.499,843 70
93,014 807 49
3,387,457 05
16,595 836 68
5,888.880 95
13,691.224 98
2,499,740 64
35,097,568 73
25,914.018 45
75.262.655 87
3.9,52,474 41
311,912 08
120.042 240 17
3,782,752 20
Pub. Wks. Con. Fund
522,055 45
1.877,863 51
i 598,704 02
-1,459,106 88
2.343.204 48
16,711.033 59
7,149 688 90
Dom. Lands & Parks
Soldiers Ld. Settlm't
■ Civil Re-Estab.
Other Expend. Accts.
3,313,047 60
1.726.47161
27,985,317 88
104.628.872 03
Total
34,131,364 I3l 271,352.190 81
28.346,349 47
313.809,278 0<,
War
Public Works, includ'g
Railways and Canals
Railway Subsidies
59.105,904 70
3,073,829 48
334.599,182 971
-340,980 67
2,848,930 97
8,980,510 64
25.796,756 65
February 18, 1921
THE MONETARY TIMES
Lubricants
For
Manufacturing,
Mining and Milling
CYLINDER OILS
Imper
al Valve Oil
al Cylinder Oil
ai Capitol Cylinder Oil
al Beaver Cylinder Oil
Imper
alZOth Century Cyllnde
01
ENGINE OILS
al Solar Red Oil
al Atlantic Red Oil
Impsr
al Junior Red Oil
al Bayonne Engine Oil
al Renown Oil
Imper
al Gas Engine OH
Imptr
al Ario Compressor Oil
Can You Afford Trouble
PROPER lubrication keeps machinery run-
ning smoothly and steadily without a
hitch. You cannot afford costly holdups in
production when the correct grade of Imperial
Lubricants will give you scientific protection
against them.
Increased production, lower operating
costs, small depreciation charges, fewer ex-
pensive repair bills follow the regular use of
Imperial Lubricants.
You get a right grade of oil for every
lubrication need. Quality is always strictly
maintained. Supplies or service are con-
veniently availabfe at all times. Here's what
prominent users say about Imperial Lubri-
cants.
All Trouble Eliminated
Since we started using Imperial Lubri-
cants, five years ago, all our lubrication troubles
have been eliminated. We are at present
using your ails exclusively in nine factories
from Halifax to Vancouver.
— L'Air Liquide Society.
A Twenty - Year Record
We have been using Imperial Lubricants
in our plant for over tu-enty years, and have
had uniformly good results and good service in
every respect.
— Smith Manufacturing Co. Limited.
Imperial Engineers will gladly advise you
on lubrication problems. Write to 56 Church
St., Toronto.
IMPERIAL OIL LIMITED
Power -Heat -Litfht-Lubrication
Five Canadian Refineries
«
Branches In All Cities U
USE /MPeRIAU LUBRICANTS EXUUSiViLY^i:^--
24
THE MONETARY TIMES
Volume 66
DOMINION GOVERNMENT SAVINGS BANKS
FIRE PREVENTION WORK APPROVED
Deposits in the Dominion government savings banks for
December, 1920, were some $18,000 in excess of the November
figure. Withdrawals, however, increased from $181,142 to
$547,746 so that the balance at the credit of depositors was
still further reduced. The following are the December de-
tails:—
BANK
Deposits
for
Dec. 1920
Total
Deposits
Withdraw-
als for
Dec, 1920
8 cts
9.03J.46
23.763.06
23,920.89
Balance on
Dec. 31,
1920.
Manitoba .—
Winnipeg
$ cts
4,069.00
19,075.51
43,455.81
S cts
417,864.93
1,101,960.89
1,786.743.04
« cts.
British Colutilbia : —
Victoria
Prince Edward Island —
1,078,197.83
.Vew Briinsrvicl.:—
Newcastle /
Transfer!
St. John
Nova Scotia .—
66,663.60
20o.no
1.428.21
36,896.34
5.904.00
25.00
4.269,799,12
64,826.50
78,721.86
2,317.623 66
251.676.08
380,276.66
74,951.45
521.15
1.196.87
30,136.93
3.691.07
101,019.85
279.256.SI
4,194,847.67
64.305.35
77,524.99
2,287,486.73
247.985.01
Halifax
Kentville
♦Lunenburg i
Transfer 1
Port Hood
1.469.00
199,186 50
66.569.59
10,736,062 33
255.01
547.746.55
66,314 58
10,188,315,78
♦Transferred to Post Office Savings Bank.
POST OFFICE SAVINGS BANKS
Increased withdrawals and slightly higher deposits are
shown in the post office savings bank statement for Novem-
ber, 1920. The balance at the credit of the deposits at the
end of the month was $29,156,896, as compared with $29,-
377,985 at the end of October. November details are as fol-
lows:—
NOVEMBER
Balance in hands of the .Minist^
of Finance on 31st Oct., 1920
Deposits in the Post Office Sav
ings Bank during month
Transfers from Domi
ernment Savings Ba
month: —
Principal
Interest accrued
from 1st April to
date of transfer . . .
Deposits transferred from the
Post Office Savings Bank of the
United Kingdom to the Post
Office Savings Bank of Canada
Interest ac
accounts
31st March 1920, Hstii
rEREST allowed to Depositors
>n accounts closed du:
nonth.
Balance at the credit
of Depositors' ac-
counts on 30th
Nov., 1920
For the purpose of studying the economic conditions of
a few of the principal South American republics Sir Edmund
Walker, president of the Canadian Bank of Commerce, and
S, H. Logan, supervisor of the foreign department, intend
leaving shortly for that country. They will while there
devote some time to determining" the possibility of the de-
velopment of Canadian foreign trade in that direction.
The following resolution was, on January 20, formally ap-
proved by the Executive Committee of the Ontario Associated
Boards of Trade and Chambers of Commerce: "Resolved, that
the Ontario Associated Boards of Trade and Chambers of
Commerce commend and urge the government to generously
support the successful efforts and laudable zeal of the On-
tario Fire Prevention League and the Ontario Safety League
in the staying of waste, the encouragement of thrift and
care, the preservation of life and property, and cordially
approve of their public-spirited and practical patriotism in
thus protecting the public domain and the industries of our
province."
This resolution had previously been adopted at the
seventh annual meeting of the Associated Boards of Trade
and Chambers of Commerce, Belleville, on the 25th November
last.
HAMILTON PROVIDENT AND LOAN CORPORATION
The annual statement for the Hamilton Provident and
Loan Corporation for the year 1920, which has just been
published, shows gross earnings for the year of $338,720, an
increC'Se over the former year of $18,669; interest on bor-
rowed capital and general expenses amounted to $157,488,
and exceeded 1919 by $8,098, leaving the net profits for the
year $181,231, an increase over 1919 of $10,571. Government
business and war taxes amounted to $19,837, an increase of
$8,406. Dividends paid amounted to $108,000, leaving a. net
surplus of $53,894.40, and $50,000 was carried to the reserve
fund, making that fund now $1,300,000— $100,000 more than
the paid-up capital of the corporation. The sum of $3,894
was carried to the contingent fund. After providing $16,207
to meet the income war tax, payable in April, 1921, the con-
tingent fund still shows a credit of $15,587.
The total assets amount to $4,800,104, an increase of
$35,765. Of the society's assets, $2,117,171 is invested in first
mortgages on productive real estate in Ontario, valued at
$4,725,000, and $2,101,224 is invested on first mortgages in
Manitoba and SaskatchewF^n on productive real estate, valued
at $5,433,800. Payments falling due on mortgages during
the year were promptly paid; the total payments amount-
ing to $948,393, of which $302,312 covers interest, and the
balance was applied in reduction of the principE'l. There has
been a very active demand for mortgage loans at remunei-a-
tive rates of interest. The company's holdings of deben-
tures have been increased from $249,106 to $292,999, while
cash on hand is also higher.
RUBBER ASSOCIATION OF CANADA
At the business session of the Rubber Association of
Canada held on February 14 in Montreal, the following
officers were among those elected: C. H. Carlisle, Toronto,
Goodyear Tire and Rubber Co. of Canada, Ltd., president;
W. A. Eden, Montreal, gener&l manager, Canadian Consoli-
dated Rubber Co., vice-president; C. N. Candee, Toronto,
Gutta Percha and Rubber Co., Ltd., treasurer; John Westren,
Toronto, Dunlop Tire and Rubber Goods Co., Ltd., assistant
treasurer; A. B. Hannay, Toronto, manager and secretary.
The following were elected as directors: F. E. Partridge,
Guelph, F. E. Pa.rtridge Rubber Co.; R. F. Foote, Merritton,
Ont., Independent Rubber Co. of Ontario. Hon. Hugh
Guthrie, minister of militia, addressed the association at its
banquet, and stated that the Dominion government would
maintain protection.
The "General" Athletic Club, composed of the staffs of
the General Accident Fire and "Life Assurance Corporation
and the General Accident Assurance Company of Canada, has
been formed for the pui-pose of engaging in various kinds
of sports.
February 18, lii21
THE MONETARY TIMES
Union Trust Company
LIMITED
Twentieth Annual Report,
Adopted by the Shareholders, February 10th, 1921.
To the
I>ectinl
uddltio)
new H.
ing to
Shareholders of the Union Trust Company, Limited;
The dgiuis of the yciii's operations appearing in our Balance Slieet, presented licrewitli, and in tlie Profit and Loss Statement as of
)er 31st, 1920, silow "the year to liave been a successful one.
Our Profit and Loss Account as of December 31st. 1920. staiiis at J96,833.11, as compared with $76,668.51 on January 1st, 1920. This
II is made after tlie deduction of all operatini; expenses, interest on Guaranteed Funds, a substjintial portion of the cost of fitting up
2ad Offices and Safety Deposit \'aults, an extraordinary expmse at our Winnipeg Brancli, and the usual quarterly dividends, amouut-
J70,000.
Ky balance brought forward from preceding year -.. $ 76,668.64
Hy net profit for year, after defraying cost of management, expenses and interest on Guaranteed Funds
To payment of quarterly dividends % 70,
To portion of cost of fitting up Head Offlces, Safe Deposit Vaults and other extraordinary expenses 6
T" taxes and registration fees accrued and paid to Dominion and Provincial Governments and Munici-
palllies 13,
T.> balance carried lorHard, 96
110,111.70
$186,810.31 $186,810.34
In every department of the Company's liu.ilness the year IMO has lieeii mariced liy activity and development— especially so since mov-
into more commodiotis offices at the corner of Richmond and Vlitoria Streets.
It Is the feeling of your Executive stalt to-day tliat tlie Compiny Is in better position to handle its business than It has ever been.
Messrs. I'nie, Walernouse \- (.o have carried on a continuius audit throughout tlie year.
The Directors have pleasure In again testifying to the excellent services rendered by the sialTs at Head Office and Winnipeg Braneii.
Respectfully submitted, HKN'RY F. GOODERHAM,
.nhi, .liinuary 24th. 1921. President.
Financial Statement for Year Ended December 31st, 1920
ASSETS AND LIABILITIES
CAPITAL ACCOUNT
Mortgages :iihI other Serurities nn Itenl Ksi.
le $0^3,385.29
Capital Stock, subscribed
Capital Stock, fully paid
Reserve Fund
$1,000,600.00
329,123.50
$1,0«0,000.00
81.572.75
450,000.00
Real Estate
418,572.09
50.000.00
170.366.19
Dividend p^ivrihle .l.in. :i. I'l.'l
Dominion Income Tax. .i<etii..l
17,.500.00
51.844.61
10.880.03
Other Liabilities
Prortt and Loss
RUST ACCOUNT
Trust Funds Inr Investnieiit
Trust Deposits ..
Capital Account
AND AGENCY ACCOUNT
Estates. TrusU and Agencies
19,649.59
96,835.11
$1,644,861.73
GUARANTEED 1
$4,297,991.21
and Stacks 903.534.59
2,212.63
114.515.44
$1,614,864.73
$3,928,097.19
Victory Bonds. Municipal and other Bonds
Loans "11 Victoiv Bonds
Cash Mil liaiid and in hanks
1.266.146.38
151.010.30
Funds and Investments
$5.348.2.53.87
ESTATES. TRUSTS
_... $6,432,505.38
J13.425.6J3.0.V
$5.34S,2.iS ^:
$6,432,505.38
TOTAL
C. U. HKNDERSOX, Secretary
$13.425.623.'iS
lAMlSS K.
PICKETT,
General
Manager.
Winnipeg
Head Office and Safe Deposit Vaults :
Richmond and Victoria Streets
Toronto
London, Eng.
BOARD OF DIRECTORS.
Regina
Henry F. Gooderham, President
H. H. Beck, Mark Bredin
Right Hon. Lord Hindlip W. C. La
John B. Laidlaw
J. H. McConnell, M.D., Vice-Pres.
G. S. May M. Ross Gooderham
Walter Harland Smith
S. R. Parsons A. P. Taylor
THE MONETARY TIMES
Volume 66.
Building Permits Reflect Business Depression
Good Record Durinji Early Part of Last Year was not Sustained — Total
Greatly Reduced Towards, the Latter Part of 1920 — Movement Over the
Past Eleven Years Shows Building Operations to be Far Behind Pre-War Days
BUSINESS depression, which set in k«t summer, is re-
flected in the value of building permits issued during
the year 1920. It will be seen from the following figures
that during the earlier part of the year, building permits
were issued far in excess of 1919. In April, for instance,
the increase over the previous year was $9,000,000, or 150
per cent. This good record, however, was not sustained, and
towards the end of the year there was a marked reduction.
The following figures show the month to month movement
during the year, as compared with 1919, and represent the
total of permits issued in fifty-six cities in the Dominion, as
taken from the Department of Labour Compilations: —
1920. 1919.
January $ :i,956,247 $ 1,166,316
February 4,684,934 2,002,044
March 8,258,410 3,329,050
April 16,382,410 7,059,641
May 12,160,379 7,776,282
June
July
August
September
October
November
December
1920.
13,295,041
13,025,560
9,439,807
8,921,374
9,660,538
5,289,321
4,654,479
1919.
7,577,346
9,274,125
11,916,045
13,303,8.32
10,390,454
7,733,263
5,144,178
$109,728,500 .$86,672,576
Movement Over Eleven Years
As compared with the war years, 1920 and 1919 figures
appear large, but it will be seen from the accompanying
table, which has been compiled from the record of thirty-five
cities as given by the Department of Labor, that building
operations are still far behind pre-war days: —
BUILDING PERMITS IN CITIES OF CANADA
Nova Scotia
Halifax .
SyJnei- ,
New Brunswick
Moncton
St. John
Westmount
Ontario
Brantfurd .
Fort Williai
Guelph ,, .
Hamilton
KinKston
Kitchener...
London . -. .
Ottawa
Peterboroug
Port Arthur
Stratford...
St. Catharir
St. Thomas
Toronto. .
Windsor.
Manitoba
Brandon...
Winnipeg ..
Saskatchewan
Moose Jaw
Regina
Saskatoon. ....
Victoria
Total-35 Cities .
•20.003.902;
IB.742,019
526,498
555,000
218,400 I
1,961,985
33.603,188|
681.030
2,101..S25
143,700
2,60.f.605
220.092
;)5fi,S07
805,123
3.022 B50
517.958
1.066.116
187.094
263.(100
202,000
20,740,498
391,990
16.034,738
929,288
15,105,450
6,240,649
1,071.590
2,351,288
2,817,771
7,750,850
5,589,594
2,161,256
1,0(14,9,58
.S09,31H
495,642
645,556
82,956
.562,600
25,705,190
22,516,832
795,254
920.004
133,008
1 ,;(40,092
39,669,026
613,860
2.936,785
513,690
4,255,730
314,569
372,948
1,036,880
2,997,610
345,372
595,180
99,003
265,435
207,420
24.373,949
740,595
19,258,082
1.024,532
18,233,550
12,521.629
2,431,738
5,137.615
4,9,52,276
16,712,432
12,907 638
3,804,794
22,653 517
1,126.355
17,501,512
4.025,650
1.209.781
,555,020
654.761
689.7951
121,845
,567.950 !
26,672.297j
22,4:(3 398
933,002
1,100,004 ,
3TJ.SM
1.833,093
50,022,468!
1,167,105
4,210,285
395,695
5,491,800
■ 642,915
5,53..523 ,
1.137.108
3,621,8.50
565,893
2,492,5,54
365,831
810,435
67.150
27,401.761
1,098„563
21,760,957
1,165,207
20,595,750
20,947,160
5,275,797
88.046,238 j
7.625,125 [
34.840,639
20,393,820 I
14,446,819
29.090,352]
1 638,460
19,374.,522 ,
8 077.370
1,158,954
837,756
321.198
2,882,780
470,780
2,412,000
34.893,449
29,723,452
1.939.781
747,450
- 482,450
2,000 316
49,474,905
1,015,886
4,009.565
357,335
5.110,000
666,474
680,721
1,786,920
3,991,280
488.240
1 .935,575
316,407
759,468
166.146
27,038.913
1,148,975
990,293
879,320
110,973
852 655'
337,355
515.300
24,.527.,591
2.022,640
2.759,573
191,322
652.130
698,165 j
38.558.430l
435.510 ;
1,530.865 i
521,734
3,703,865 I
288,577
728,320
1,837.735
4.397,820
452,335
1,^34.085
440,715
782.253
388.915
20,694,288
1.121.413
19.231,259 13,240,3f5:
609,609 395,335
18,621,650 12.845,050
13,007,665
4,535,470
4,018,350
4,453.845
17,862,103
8,619,653
9,242,450
15,151,727
958,975
10,423,197
3,768.555
2,783,2351
459,860
1,761,875
,56! ,500
8 938,627
3,425,.''50
5.513,277
6,889,7651
261,629 ■
4,484,476
2,143,660
1,262,087
1,063,985
198,102
864,339
518,064
346,275
12.267,849
8,i63,021
2.576,342
354,876
484.205
589,405
14,3.53.828
235,606
638,930
219,672
1 ,522,348
244 088
334 404
1.207.630
1,60,1,160
97,610
83 625
209,800
445,981
134,215
6,651.889
722.870
1,862,4,55
36,155
1,826,300
574,987
90,722
464,065
20,200
460,375
1,50,5,50
309,825
1,920,829
85.l:i0
1 ,593,249
242,450
95,780,581; 33,566,749
1,348,434
1,220.329
128.105
675.980
211.630
464..3,50
9,890.630
5,.527,544
2,912,157
368,830
.537,345
544,7,54 j
20,229„574|
282,677
400,525
155.222
2,410,131
184,321
324.8.38 I
926,125
1., 530.400 I
128,040
1., 565.095
190,619
595,715
145.S65
9,881.671 ;
1,. 508,330 ;
2,752 173
244,873
2.,507.30(1
687,170
318,945
•222.075
146,150
895,040
663.500
•231,540
3,245.465
85,307
2.989.693
170.265
1,230,647
904.377
416,270
870,963
339,713
.531,250
8,794,149
5,501,918
2.459,386
254,000
423'.860
154,985
17.407,571
•287,195
6,58,445
111,435
2,746,675
1,50,705
205 352
837,890
1,041.017
953,503
1,345,174
449,036
79.875
216,338
7, 163 556
1,161,375
2,392,788
180,338
2,212.4,50
1,294.659
295,460
416,460
582.739
858,000
,548,200
309,800
997,649
81,515
768,255
147.879
39.721,466 33,936.426
3,29S,635| 5,898,336
2,866,852 ] 5,194,805
428,783 703,531
498,7481 2,674,716
147,425 I 2,132,176
351,323 1 542,540
6,852,354, 1.5.166.851
«2,87^(
904.375
150.920
638.975
275.21 1
18.477,012
761,500
.535,615
83,044
2,472,254
318,943
226 062
877,660
•2,63.5,612
•241,251
K10„5'27
89,786
465,727
53,395
8.535,331
570,305
10.033,901
2,134,219
873,1.50
1,242,4,50
883,131
40,584,834
1.173„580
6^27,930
603.2.59
5.087.462
657.679
1.176,962
2,455,170
3,2,52,322
196,368
1.708,845
278.888
861,636
•285,525
1-.617.8:'8
2.601.370
2,140 6721 3,046,541
90,022 98,541
2.050.650 2,948,000
2,177,'290
566,575
1,0(16 000
604,715
3,694,505
.590,895
I,699,0'20
1,404,590
1,548,^270 3,143,346
1,196,8110 2,212,000
:t51.470 931,346
1,848,289
108,300
.451i.'229
•289,760
2.904,284
166,282
2,271.411
466,591
36.838,270 77,113,413
4.326.. if 6
3,421,354
■ 905,232
2.316,133
1,190,8.33
1,125,300
21,798,878
14,328,355
2,301,480
3,1.55,808
843,355
l,169,h.f0
47,167,171
840,613
866.960
. 486,558
4,:f2I,420
534,736
1 .277.595
2,219,5.35
3, 390. ,507
938,645
177,631
425,847
830,720
263,031
•25,7,33,063
4,860,310
8,779,173
408,123
8.371,0,50
5,284,280
1,533,095
2,600,60(1
1,150,585
5,173,0,54
319,109
3,709,873
1,144,072
vailable for New Westminster before 1911.
The Canadian Automobile Underwriters' Association
have just made new rates for a special third party indemnity
applicable either to property damage or personal injury
for a limit of $20,000. This $20,000 third party limit is
unique in so far as it is applicable every way — i.e., it may
be available for damage to property, or injury to the public,
or both, and the limit for one person may be $20,000.
The third annual dinner of the staff of the Continental
and Fidelity-Phenix Insurance Companies was held on Jan-
uary 19, 1921, in Montreal. It was attended by the entire
staff and all field representatives east of Winnipeg. The
guest of honor was Herbert Shaw, a member of the firm of
Parkes, McVittie and Shaw, who represent the Continental
Insurance Company at Toronto.
February 18, 1921
.KE MONETARY TIMES
giiiiiiiiiii«|i|iiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiNiiuiiiiiiiiiiiiuiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiittiiiiiiiiiiiiiiiiiiiiii{u
The Real Estate Loan Company of Canada, Limited
i BALANCE SHEET AS AT 31st DECEMBER, 1920
Real Estate held for sale
Loans on Mortgage-
Principal _
Interest due and accrued
J.oans on Government and Municipal Bonds
United Kingdom, Dominion of Canada and
Provinces of Canada Securities :... t 52,282.79
Canadian Municipalities, School Districts
and Rural Telephone Debentures 140,833.33
LIABILITIES
TO THE PUBLIC—
Sterling Debentures and Interest accrued
thereon ., _
Currency Debentures and Interest accrued
thereon „ _„ _...
Open Accounts '.. _.. I 409.46
Reserve for Accrued Taxes _ _ 9,000.00
Cash in Chartered Banks and on hand..
Jj58,206.23
30,900.93
9,409.46
TO THE SHAREHOLDERS—
Capital Stock Subscribed $500,0<K).0«
Capital Stock fully paid _... $ 500,000.00
Rest »220,00O.00
Contingent Fttnd 40,000.00
Dividend No. 68, Payable 3rd January, 1921
Dividends Unclaimed, etc „...
Profit and Ixiss Account. _
i. 156.47
l.673.a-.l
PROFIT AND LOSS ACCOUNT-For Year Ending Slat December, 1920
Interest paid and accrued
Sterling Exchange thereon _
Kxponses of Money Borrowed and Lent
Cost of Management „ „.
tiovernment and Municipal Taxes
Reserved for Accrued Government Taxes.
Dividends Nos. 67 and 6S
Haianc-e <'arrled fnrwiinl
money borrowed less
26,641.19
816.18
12.380.38
3,483.95
6,704.41
39.000.00
5.312.97
(90.339.08
Balance forward, 31st Deceiiiher, 1919
Less : Voted at Annual fleeting to President
and Vice-President ......_
I,45I.1S
1.200.00
-i :;.'il.4,s
90,OS7.60
590.339.08
I E. L. .MORTON, Manager. |
i~ We have audltcil tin- I ks .unl j.-ininils of the Real Estate Loan Company of Canada. Limited, for the year ending 31st December, 1
§ 1920. and have verified the rash, bank balances and securities of the Company. After due consideration we have formed an independent =
I opinion as to tlie position of the Ccuniiany. In our opinion so formed and according to the best of our Information and explanations given i
I lo US. we certify that the above staieriierus set forth fairly and truly the state of nlTalrs of the Company and are In accordance with Us books =
= All transaclloris of the Company that have come within our notice have been wltbln the powers of the Company. B
I S. W. BLACK. 1 I
i H. D. LOCKHART GORDON. F.C.A., / Auditors. §
g Toronto. 25th January, 1921. 420 i
iniiiiiiittiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiii iiiiiiiinimiiiiii iiiniiiiiiiiiiiiiiiiiHiiiimniiniiiiinituiiinminiiiiimiinmiiiiimiinnwiitnimiM^^^^^ iininiiip
'^lllllllllllllllllllllllllllllllllllllllllllllllllllllllinilllllllllllilllilillllllllllllllllllllllliliin^
iiiiiiinimiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiitt^
THE
NORTH WEST FIRE INSURANCE COMPANY
HEAD OFFICE
GEO. R. CROWE, I'r^yJenl
T. L. MORRISEY, Genera/ Manager
WINNIPEG
GEO. V. HASTINGS, Kice-P.c3.Vcn/
THOS. BRUCE, /Jcpu(.v Manager
37th ANNUAL REPORT, 1920
REVENUE ACCOUNT
RECEIPTS.
Net Premium Income
Interest
Sundries
$172,,575.39
19,707.10
10.68
$192,293.17
Losses
Expenses
Balance
EXPENDITURE.
$ 60,266.96
66,275.89
65,750.32
$192,293.17
BALANCE SHEET
ASSETS.
Cash on liand and in Banks $ 93,375.36
Agents' balances 27,192.33
Debentures and mortgages 319,659.39
Accrued interest . . 7,809.75
Sinking Fund . 97.33
$448,134.16
LIABILITIES.
Capital Stock paid up
Reserve for unearned premiums.
Due for Reinsurance
Losses Outstanding
Reserve Government taxes
Surplus
$100,000.00
137,071.66
13,117.13
14,021.00
5,430.13
178,494.24
$448,134.16
I . 423 I
aiiiiiiiiiiiiiiiiiiiiiiiiiiiioiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiwiiiiiiin^^
28
THE MONETARY TIMES
Volume 66
TENTH ANNUAL REPORT OF THtl DIRECTORS OF
The Canada National Fire
Insurance Company
To the Shareholders: —
Your Directors have pleasure in presenting for your
consideration their Tenth Annual Report, also the Statement
of Assets and Liabilities and Revenue and Expenditure Ac-
counts for the year ending December 31st, 1920, certified by
the Auditors of the Company.
It is with a feeling of satisfaction that your Directors
beg to report that the Company has experienced another
successful year, in fact, it may be regarded as one of the
best years in the Company's history.
There were, during the past year, no outstanding
features which had special bearing on the operations of the
Company.
Business conditions were, on the whole, much the same
as in the previous year, although contrary to the expecta-
tions of many, prices of pi-actically all commodities continued
to. soar, and the wage standard was maintained as during
the war period. As a result, owners of buildings, manu-
facturers, wholesalers and retailers found it necessary, for
their adequate protection, to materially increase their lines
of fire insurance. This resulted in a considerable increase
in the volume of fire insurance written during the year.
While building operations were not very active, as com-
pared with those during normal times, there was quite an
improvement over the preceding year. After a period of
sevei'al years' inactivity in building, followed by the return
of many thousands of soldiers from overseas, and an in-
creasing number of immigrants during the last three years,
there was experienced a great shortage, particularly in
housing accommodation. This reached a climax in the fall
of 1920, not only in the Dominion, the United States, but
in the British Isles and many other countries.
There was considerable agitation during the year to
meet the growing requirements of the increasing population,
and many plans were proposed and some carried out with a
certain measure of success, but Capital did not respond very
readily owing to the prevailing- high cost of material and
labor. This problem has yet to be solved. It is felt, how-
ever, that with a gradual readjustment along these lines,
the building situation will show signs of improvement.
The business of a fire insurance company is closely as-
sociated with that of the building trades, as new buildings
are an important source of business for a fire company.
Even the moderate improvement in conditions during 1920
is reflected in the volume of insurance written by this Com-
pany, the increase over the previous year being $3,205,450.00.
The business written by the Company in 1920 was $26,364,-
244.00, this amount eclipsing all previous records of the
Company.
While this record is a gratifying one, your Directors
have reason to believe that, with a change for the better in
general conditions, the present year should show a material
increase in business over that of last year.
The gross premiums on business \vritten by the Com-
pany in 1920 were $328,171.96, a gain over 1919 of $40,-
794.41. Reinsurance premiums amounted to $125,428.97, an
increase of $23,016.46. Gi-oss insurance in force at Decem-
ber 31st, 1920, was $36,891,896.00. This shows a gain over
the figures of the previous year of $5,137,562.00. Premiums
on gross insurance in force wei'e $527,749.23, a gain of $71,-
856.99. Reinsurance in force at the close of the year was
$10,625,149.00, an increase of $1,718,101.00, the premiums
thereon amounting to $145,180.39, being $26,015.66 greater
than in 1919. Net fire insurance in force at December 31st,
1920, was $26,266,747.00, the gain over the previous year's
figures beinu' $3,419,460.00.
Before referring to this Company's loss ratio for 1920,
it might prove of interest to know that the total fire losses
in Canada for that year were the largest, with one exception,
in the history of the Dominion, being estimated at $27,706,-
574.00, or $4,500,000.00 greater than in 1919, but approxi-
mately $4,100,000.00 less than in 1918, Canada's record year
for fires, several large munition plants being destroyed in
that year.
Favorable comment was expressed at this Company's
low loss ratio of 33.45 per cent, in 1919, but even a better
showing was made under more unfavorable conditions in
1920, the loss ratio reaching the very low level of 32.82 per
cent., which surpasses all previous recoi-ds of the Company.
The average loss ratio for the last fifty-one years, from
1869 to 1919, inclusive, for all Companies operating in Can-
ada, was 58.19 per cent., or in other words, 25.37 per cent,
in excess of this Company's record for last year.
Considering that the year 1920 was none too favorable
for Fire Companies generally, due, among other things, to
great extremes in weather conditions, a very severe winter
followed by an unusually long, hot, dry summer, your Direc-
tors are very gratified at the year's results, and they take
this opportunity of referring to the efficient ' and able ad-
ministration of the Underwriting Department of the Com-
pany, realizing that while it is desirable and important te
increase the volume of business from year to year, it is
equally important, if not more so, to make a careful selec-
tion and decline, undesirable and hazardous risks, however
profitable they might prove to be, even at the sacrifice of
volume of business.
On referring to the Financial Statement it will be noted
that of the Company's securities, mortgages on Real Estate
form the chief item, these amounting to $1,560,531.61, an in-
crease for the year of $126,427.72. Payment of Interest and
Principal showed quite an improvement over the previous
year. These loans are upon improved city and farm pro-
perties, and the fact that they have borne up so well during
several years of depression, indicates the high character of
these investments. There was a reasonably active demand
for mortgage moneys during the year.
The item Stocks and Bonds remains practically the
same as in the previous year, standing at $676,615.11, made
up largely of Dominion Government War Bonds, amounting
to $5.5.5,000.00.
Agents' Balances amounted to $43,279.08, or a reduc-
tion of $4,087.82 from last year.
Cash on Hand and in Banks amounted to $25,646.44.
From the standpoint of liquid assets, the Company
maintains a strong financial position, these liquid securities,
comprising high-grade Stocks and Bonds and Cash Reserves,
amounting to over $700,000.00.
Due to the large increase in business in 1920, the re-
serve for unearned premiums now stands at $157,574.75, or
$13,088.47 greater than at the close of the previous year.
With reference to the business with Foreign Treaty Com-
panies, this Company held on deposit, re-insurance premiums
amounting to $72,568.09, an increase over 1919 figures of
$8,748.86.
Revenue derived from mortgages, stocks, bonds and
various other sources amounted to $167,547.16, a gain of
$15,316.53 over last year, and net fire premiums, after de-
ducting cancellations, rebates and re-insurance, were $202,-
742.99, an increase of $17,777.95 over 1919 figures. The
total revenue for the year was $370,290.15, as against $337,-
195.67 for the previous year, showing a gain of $33,094.48.
.4fter providing for all management expenses, fire
losses, taxes, Government Reserve, interest and sundrv other
February 18, 1921
THE MONETARY TIMES
charges, as well as writing off $3,536.25 for depreciation in
Furniture and Fixtures, there remained net profits of $156,-
332.67. Out of these profits there was apportioned the usual
annual dividend of six per cent., which amounted to $110,-
503.84, leaving a balance of $45,828.53. This amount has
been transferred to the reserve or net surplus to sharehold-
ers, bringing that fund up to $343,414.25. This sum, added
to the Contingent Reserve Fund, makes a combined reserve
of $443,414.25, or 23.97 per cent, of the paid-up Capital.
The Surplus to Policyholders shows a gain of $69,606.98,
now amounting to the large sum of $2,193,150.60. This item
requires no special comment; suffice to say, that, from the
point of view of the Assured, there is absolute protection
and security.
When considering the business of fire insurance, too
much importance cannot be attached to the financial posi-
tion of the insuring Company. A Company with a large
surplus to its policyholders is a safer company in which to
insure than one with a small Capital and Reserve, and in
this respect your Company, while young in years, stands
right at the top of our Canadian Fire Companies.
The past few years have been trying years to build up
a large and successful business, but by an aggressive policy
and careful underwriting, satisfactory results have been
achieved, and as for the future, your Directors are confident
that, with the return to normal conditions, and it is hoped
prosperous times in the comparatively near future, this Com-
pany will greatly extend its business and forge ahead more
rapidly than it has done in the past.
Your directors again wish to thank the Shareholders for
the many evidences of co-operation and support during the
past year. They fully realize and appreciate the fact that
the hearty co-operation of the Shareholders means much for
the welfare and upbuilding of the Company.
It is with a feeling of warm appreciation that your
Directors draw attention to the splendid services rendered
by the Officers and Staff as well as the many
Agents of the Company, and they take this opportunity to
thank them for their good work during the past year, and
trust that their efforts in the present year will meet with
even a larger measure of success than they have hitherto
enjoyed.
J. H. G. RUSSELL,
President.
Winnipeg, February 8th, 1921.
.A.t a subsequent meeting of the newly-elected Board
of Directors. J. H. G. Russell was elected President; W. J.
Boyd and F. H. Alexander, Vice-Presidents; and W. T. Alex-
ander, Managing Director.
Financial Statement,
ASSETS.
Mortgage Loans on Real Estate and Accrued
Interest $1,560,531.61
Stocks and Bonds (at cost) and Accrued In-
terest 676,615.11
Real Estate- Head Office Property. $164,796.98
Real Estate, Other than Head Office
Property 213,113.63
377,910.61
Office Furniture and Fixtures, Maps and Plans,'
Less Depreciation 16,854.37
Accounts Receivable 2,015.69
Agents' Balances 43,279.08
Cash in Banks and on Hand 25,640.44
$2,702,852.91
REVENUE.
Balance Brought Forward from 1919 $ 442.071.70
Profits from Mortgages, Stocks and Other
Sources 167,.547.16
Fire Insurance Premiums for 1920. .$328,171.96
Less Reinsurance thereon 1^5,428.97 '
202,742.99
31st December, 1920
LI.4BILITIES.
Government Reserve for Unearned Premiums.. $ 157,574.75
Losses Unpaid (in Course of of Adjustment). . 10,773.00
Accounts Payable 19,438.97
Reinsurance Premiums (held as Reserve on De-
posit) 72,568.09
Dividend for Year Ending 31st December, 1920. 110,503.84
First Reinsurance Co. of Hartford, Special
Account 38.843.66
Contingent Reserve Fund 100,000.00
Capital Stock Sub-
scribed $2,050,400.00
Paid Up $1,849,736.35
Net Surplus 343,414.25
Surplus to Policyholders 2,193,150.60
$2,702,852.91
EXPENDITURE.
General Expenses, Salaries, Commissions, etc. —
Loan and Investment Depart-
ment $ 39,820.30
Fire Department 90,957.31
Losses and Loss Adjustment Ex-
penses $127,752.22
Less — Reinsurance Recoveries . . 61,197.07
Depreciation written off Furniture and Maps..
Dividend for Year Ending 31st December, 1920.
Reserve for Unearned Premiums. . .$157,574.75
Net Surplus 343,414.25
$ 130,777.61
66,555.15
3,536.25
110,503.84
$ 812,361.85
500,989.00
$ 812,361.85
AUDITORS' REPORT.
To the Shareholders: —
We beg to report that we have audited the Books and
Accounts of The Canada National Fire Insurance Company
for the year ending 31st December, 1920, and have found
them properly stated and sufficiently vouched. We have
verified the Cash on Hand and in Banks and the Mortgages
and other Securities. In our opinion the Balance Sheet
presents a correct view of the state of the Company's affairs
as at 31st December, 1920, according to the best of our in-
formation and the explanations given us, and as shown by
the Books of the Company.
(Signed)
Winnipeg, 4th February, 1921
D. A. PENDER, SLASOR & CO.,
Chartered Accountants.
422
30
THE MONETARY TIMES
Volume 66.
Ontario Treasurer Estimates Surplus of $3,500,000
New Taxes Outlined in Budget Speech on Tuesday— Last Year's Accounts Stiow
Deficit of $802,748 —Capital Expenditure was $56,963,946 -- Estimates for Present
Year are Lower— Province Must Continue to be Heavv Borrower, 8avs Treasurer
ALTHOUGH the province of Ontario borrowed $55,834,979
during- the year ended October 31, 1920, and received
$25,078,094 on current account, these funds proved insufficient
to meet the requirements. Capital expenditure was $56,963,-
U46, and ordinary expenditure $25,880,843. The balance of
cash on hand is accordingly reduced by $1,931,716. These
figures were made public when the treasurer, Hon. Peter
Smith, presented the public accounts for the year ended
October 31, 1920, in the legislature on February 11.
The financial results for the fiscal year are summarized
in the public accounts as follows: —
Cash on hand, October 31, 1919
Ordinary receipts
Capital receipts
7,603,H'0
25,078,094
55,834,979
Total $ 88,516,183
Cash on hand, October 31, 1920 $ 5,671,393 ■
Ordinary expenditure 25,880,843
Capital expenditure 56,963,946
Total $ 88,516,183
Estimates for 1921
Estimates for the current financial year, ending October
31, 1921, presented by the treasurer on February 15, shows
receipts as follows: —
Land and forests dept $ 2,000,000
Public institutions 1,000,000
Motor vehicle licenses 2,500,000
Amusement tax act 1,500,000
Succession duties 4,500,000
Corporation tax act 3,300,000
Hydro commission, interest 3,700,000
T. and N.O. Railway 500,000
Game and fisheries 750,000
Ontario temperance act 500,000
Mines dept 300,000
Agriculture 200,000
Education dept 400,000
Provincial secretary dept 437,500
Insurance dept 100,000
Law stamps 250,000
Casual revenue 500,000
Subsidy 2,396,378
Attorney-general's dept., miscellaneous.. 165,900
Treasury dept., miscellaneous 430,983
Provincial secretary's dept., miscellaneous 365,250
Lands and forests 1,454,450
Department of mines 202,900
Department of labor 1,251,952
Refund account 234,496
Miscellaneous expenditure 100,000
Total $20,880,202
Among the items of expenditure are: —
Civil government $ 1,901,590
Legislation 333,100
Administration of justice 860,343
Education 5,777,018
Public institutions 3,321,112
Agriculture 1,353,506
Colonization and immigration 173,500
Hospitals and charities 1,073,400
.Maintenance and repairs of government
buildings 492,312
Public buildings $ 488,467
Public works 155,900
Colonization roads 107,300
Highways dept. . . . '. 154,220
Game and fisheries 482,500
Capital expenditure is estimated as follows: —
Parliament building's, for additional accom-
modation $ 200,000
Public institutions buildings 597,850
Agricultural buildings 181,000
Buildings in districts 263,000
Total expenditure, including capital, is estimated at
$22,122,052, and total receipts at $25,683,878, which would
leave a surplus of about $3,500,000.
Provincial Assets
The assets of the province are about $645,983,000, while
the taxable property in Ontario actually assessed by munici-
palities is given as over $2,000,000,000. The liabilities, direct
and indirect, amount to $159,752,055. The province has bank
balances of $5,671,393.
There is nothing in the financial statement as to the
amount to be spent on the Hydro this year, although supple-
mentary estimates which were also tabled contain the
estimate of capital expenditure by the Hydro-Electric Power
Commission as $29,347,700. Of this amount, some $21,700,000
is put down for the Chippawa development, $5,115,000 for
the Niagara system, and the remainder to be spent on the
other systems in the Hydro Power Commission. The supple-
mentary estimates also contain $1,371,737 for education.
The treasurer proposes the following new taxes: A two
mill tax on all real estate transfers; one quarter of one per
cent, tax on all bank reserve funds; extension of amusement
tax to all poolrooms and billiard parlors; increase in railway
taxes from $25 to $40 per mile; increased taxes under the
Ontario Mining Act. It is estimated that these will yield new
revenue of $1,500,000.
In his remarks on the financial affairs of the province,
Hon. Mr. Smith predicted heavy bori'owings for some time
to come, and he felt it incumbent on all parties to say
nothing injurious to the credit of the province. Referring to
last year's accounts, he said that ordinary expenditure
amounted to $25,880,842 and ordinary revenue to $25,078,094,
leaving ordinary revenue short of ordinary expenditure
$802,748. "You will readily see," he declared, "that this
statement and this result could have been easily changed
to a more favorable showing had the accounting been treated
as in 1918 and in previous years." In spite of criticism last
year as to his method of accounting, the provincial treasui'er
said he still maintained he was correct.
He illustrated the difference between his method of
accounting and that of the late government, under whose
regime numerous items were treated as ordinary revenue
that were now being treated as capital revenue. "Had the
financial statement been brought down and produced upon
the old lines, that, on the lines which the old government
adopted," he declared, "we would have shown a surplus of
$875,198."
"When I presented my budget a year ago we were un-
tried members," said Hon. Peter Smith. "I said then that
there might be some important changes, but when I look
around I see the same ministers in the same places. They
have been carrying on successfully that the chances are
there will be no changes. I am proud of the small deficit we
have this year. Governments in this country or any other
Febiuarv IS. liril THE MONETARY TIMES
The Forty-Sixth Annual Report of
The London Life
Insurance Company
Insurance Issued : $31,826,696 Insurance in Force : $96,600,075
(A gain of $7,007,920) (A Gain of $20,218,436)
Surplus on basis Dominion Government Standard $1,453,435.
(A gain of $2'57.557.)
PROFIT SCALE MAINTAINED
Items from Report
1915 1920 Increase in 5 years
Income . . $ 1,666,122 $ 4,196,385 $ 2,530,263
Assets 6,075,323 13,105,083 7,029,760
Surplus (including Paid Capital, $75,000, Standard of
Dominion Insurance Act ^ 753,625 1,453,455 699,830
Insurance Issued 11,060,512 31,826,696 20,766,184
Insurance in force ... 34,820,328 96,600,075 61,779,747
The London Life and the Public
The 1920 Report is of extreme interest to the Qsmpany's thousands of policyholders and those contemplating
new Insurance. It indicates- the solid foundation on which the business of the Company was built and the strong
position of the Company to render future service.
Four Important Points
1. Security —
High Standard of Reserves — over $850,000 in excess of the Government Standard.
Quality Risks — .\11 Canadian, measuring up to Best Standards.
Sound Investments — .\11 Canadian. Bonds and mortgages of safest type. No losses during
the year.
2. High Earnings —
Interest Rate — (6.61',1 ) at high point, consistent with secure investments.
Mortality Experience — (37.4%) most favorable — characteristic of Canadian risks.
Profit results to policyholders are bringing great satisfaction— are due to high earnings and
careful management.
3. Service —
Policyholders' interests are paramount.
Dividend record is unexcelled.
Obligations are met promptly.
Needs of Policyholders and Beneficiaries receive prompt and s>nTipathetic attention.
4. New Policies —
The "Canadian" Series Policies.
Designed for Canadians of Vision.
With Unique Service Privileges.
With provision for ."Vdjustment with Change of Circumstances.
With High Guaranteed Values.
Meet the Real Insurance Needs.
The Right Policies for Canadians — in a Good Canadian Company.
Statement Showing Company's Progress
1900 $ 297.249
190r> . 475,015
19tn 842.09.'^
1915 . . . 1.606,122
1920 4,217,693
Ai'.sets
New Business
Business in Forco
$ 1.005,110
$ 1,348,981
$ 6,100,566
1.866.425
2,360,906
9,102.751
3.255.950
6,180,141
16.795.393
6075.323
11.060,512
34,820.327
3,105,083
31,826,696
96,600,075
A more detailed Statement of the Annual Report will be mailed to every Policyholder in due course and
to others upon request.
At a meeting of the Board of Directors, held subsequent to the Annual Meeting. Mr. John McClary was
elected Honorarv President; Dr. A. O. Jefferv. K.C., President, and Messrs. W. M. Spencer and J. G. Richter, Vice-
Pre?-dents. " 424
32
THE lAI O N E T A R Y TIMES
Volume 66.
country, should not be out to make large surpluses. We
expected a much larger deficit. I think the country at large
expected it."
Exchange Caused Heavy Loss
The late provincial treasurer, he said, had been forced
into the financial market when conditions for borrowing: were
at their worst. On one occasion, he said, that official had
been forced to go to the Dominion government to borrow
enough to keep the province going. At another time the
late provincial treasurer, he said, was forced to borrow
.$3,000,000 in New York on a treasury note. When the pre-
sent government repaid that note, he said, the exchange
charges amounted to $391,000. "Altogether," he said, "ex-
change I'ate on interest coupons and repayments of loans
cost the government this year $789,165, or, in other words,
practically our whole deficit would have been wiped out if
there had been no exchange between us and the United
States."
Touching upon increased revenues during the past year,
Hon. Mr. Smith mentioned the T. & N. O. Railway, which, he
said, had just completed one of the most successful years in
its history. "In another year," he said, "we hope to be able
to say that the railway's profit will not only pay interest on
investment, but leave a profit besides." To-day, he said, the
T. & N. O. Railway was equal to any railway in Canada
in the standard of its equipment and rolling stock.
Of a total expenditure of $4,000,000 on public highways,
the provincial treasurer anticipated refunds as follows:
$737,000 from the municipalities and $1,426,000 from the Do-
minion government, or a total of $2,163,000, leaving an actual
expenditure of only $2,326,000.
Increases in Taxation
"To ofl:'set the increased expenditure on certain lines
next year," he proceeded, "We are amending the Corpora-
tions Tax Act, so that it will bring in an estimated revenue
of $450,000." The amendment, he said, will provide for a
tax of one-quarter of one per cent, on all reserve funds of
chartered banks.
"We are increasing the railway taxation from $25 per
mile to $40 per mile," he went on. "While the Canadian
National is likely to show a large deficit, other railroads
are making money, and have increased their rates all along
the line, and we feel we are perfctly justified in having a
little more revenue. We are proposing to put a tax on bil-
liard parlors which will increase our revenue $280,000. It is
an amusement tax. We are proposing to tax real estate
transfers^-two mills on the dollar all over the province. Our
estimated revenue from that is $250,000. We expect to in-
crease our revenue from the Mining Tax Act $100,000. The
estimated increase in revenue from these sources will be
$1,500,000."
MERCANTILE TRUST COMPANY OP CANADA
A falling off in business, but slightly higher earnings
are shown in the annual statement of the Mercantile Trust
Co. of Canada, Ltd., Hamilton, Ont. Estates, trusts and
agencies, under administration by the company amounted to
$3,547,626 In 1920, compared with $4,271,700 at the end of
1919. Trust funds for investment or distribution are also
considerably lower at $413,272.
Net profits for the year were $56,736, being slightly
more than $1,000 in excess of the 1919 results. The usual
dividend of six per cent, was paid, and in addition a bonus
of one per cent, was distributed to shareholders. The amount
of $2,500 was transferred to the contingent fund for possible
depreciation of securities and overdue interest on mortgage
loans in the western provinces, and this account now amounts
to $12,500.
Total assets of the company now amount to $5,919,339,
as compared with $0,915,107 a year ago. The capital and re-
serve are unchanged at $500,000 ar^^ $125,000 respectively.
PEOPLES LOAN AND SAVINGS COMPANY
The People's Loan and Savings Co., London, Ont., re-
ports 1920 earnings amounting to $72,236, as against $69,290 in
1919, although mortgage loans were slightly less at $799,-
662. The usual dividend of five per cent, was paid, and
$5,000 was transferred to reserve, bringing that fund up to
$65,000, or 13.28 per cent, of the paid-up capital of $489,388.
The amount on deposit and in debentures amounts to
$525,245, showing an increase of $66,669 over the preceding
year. Total assets are now $1,094,702, compared with $1,038,-
165 in 1919, and $796,114 in 1914.
PREMIER TRUST COMPANY
Although still in its preliminary stages, the Premier
Trust Co., of London, Ont., made good progress in 1920.
Estates, trusts, etc., under administration by the company
are shown at $486,107, compared with $344,604 in 1919, while
guaranteed trust accounts are higher at $42,540. Total
assets are now $627,469, as against $517,167 for the previous
year.
Interest, commission and fees, etc., totalled $13,855 last
year, being an increase of $790. The paid-up capital of the
company now amounts to $127,794, while the reserve is $10,-
000. There is also a contingent fund of $3,504. The com-
pany was enabled last year to increase its dividend from
four to five per cent.
WESTERN LIFE ASSURANCE COMPANY
The annual report of the Western Life Assurance Co.
shows new policies issued and revived of $1,308,750, and
total insurance in force of $4,233,907, an increase over 1919
of $774,968. Gross cash revenue from premiums and in-
terest was $145,008, which together with an increase in the
outstanding and deferred premiums of $21,090, made a total
income of $166,098.
The assets of the company have now reached the total
of $383,681, and exceed the total liabilities to policyholders
by $75,487. The company's reserves now amount to $291,-
969, an increase of $80,472 over 1919. Death and disability
claims in 1920 were paid to the amount of $35,277. Some
important changes were made in the company's directorate
at the annual meeting, James Carruthers being elected presi-
dent.
BRITISH COLUMBIA PERMANENT LOAN
Income of the British Columbia Permanent Loan Co. in
1920 was $254,849, an increase of $30,000 over that for 1919,
although the interest from mortgage loans was less by
about $20,000. The principal items to show increase were
recovered, improved property, rents, and sterling exchange.
Expenses were $70,436, compared with $65,454 in 1919, and
interest payments were $57,945, a decrease of $10,000, leav-
ing net profits of $126,467, compared with $91,789 in 1919.
This added to the balance of $104,709 brought forward made
a total of $231,177 available; the sum of $105,595 was trans-
ferred to reserve, $10,000 to contingent fund, and 8 per
cent, in dividends and bonus paid.
The assets are now $2,917,422, an increase of $9,000.
Mortgage loans have decreased from $2,368,891 to $2,041,786,
and properties acquired by foreclosure and sold by agreement
have also decreased from $322,800 to $287,948. Cash assets
are higher, however, and additional investments have been
made in bonds. Debentures outstanding in Great Britain
and the United States show a large reduction, but those in
Canada have increased, while deposits are about three and
one-half times what they were at the end of 1919.
Februaiv 18, l!i2i
THE MONETARY TIJIES
illllllllllllllllllllllllllllllllillllllllllillllllllllllllllllllllllllllJIIIIIIIIIIIIIIIIIIIIIIIIIIIilllllllllM^
I WM. A. ROGERS, LIMITED |
I Report of the Directors to the Shareholders for the Year ended December 31, 1920 |
a The Directors present to the Shareholders their T'ventietli Annual Report with accompanying statement of B
H Assets and Liabilities as at December 31st, 1920: B
1 Profit and Loss Balance brought forward from 1919 -$303,448.83 1
i Less Federal Taxes on 1919 Earnings paid in 1920 65,057.68 1
$238,391.15
Profits for the year • 572,536.78
The appropriations were as follows:
Transferred to Realty and Plant Reserve 1 $169,468.20
Transferred to Reserve Account 50,000.00
Dividends on Preference Stock for current year, at the rate of 7% per annum 78,596.00
Dividends on Preference Stock of 5%'.c on account of arrears 58,947.00
$810,927.93
$357,011.20 1
Balance forward to 1921 $453,916.73 1
The volume of business and the net profit for 1920 exceeded all former i-ecords.
The inventories on hand have been written dowTi to present replacement values, and the shrinkage has been
charged off in the year's expenses. The inventories are in e.xcellent condition both as to character and prices.
In addition to the customary transfer to the Realty and Plant Reserve, the sum of $50,000 has been appropriated
to the General Reserve Account, which now stands at $350,000.
Dividends totalling 12%";; were paid on the Preference Shares during the year. These included 5%'Tr on ac-
count of arrears, leaving 8?49f still unpaid. It is proposed to continue these payments as opportunity offers dur-
ing 1921.
The Profit and Loss balance is subject to deduction of the United States Federal taxes on 1920 profits, the
amount of which cannot be determined accurately at this time.
Canadian Wm. A. Rogers Limited had a good year in 1920, and is not expected to call upon this Company for
any contribution under the Guarantee Agreement, which continues to April 1st, 1924.
Business foil away toward the end of the year and is quiet at the opening of 1921. We are seeing evidences of
improvement, however, and look forward to a gradual restoration of confidence. It is our expectation that the cur-
tailment that is likely to occur in the early part of 1921 will be made up in the later months, and that the year as a
whole will yield a satisfactory and profitable volume.
Bv order of the Board :
.">. .T. MOORE, President.
Statement of Assets and
ASSETS
Real EsLite
Property riirch.ised for Emplo.vecs t23,739
Less MortEiiKOs thereon _ _ 11,985
Plant, Machinery and Equipment
Investments in other Companies — .. —
Trademarks and Goodwill ..._
Merchandise
Arconnts and Bills Receivable
Cash at Bankers and in Hand
Liabilities, December 31, 1920
LIABILITIES
Ca|>ital Slock Issued :
Preference Stock $1,122,800,00
Ordinary Stock 1.500.000.00 ^
Six per cent. Serial Bonds outstanding
Dividends on Preference Stock payable Jan. 3.
1921
-Accounts andBllLs Payable
Accrued Interest on Bonds ..,
).298.00
r,6I0.95
).800.00
Roaltv and Plant Reserve J 428.650.49
Reserve Account - 350,000.00
Profit and Loss Balance (subject to U. S. Fed-
eral Taxes on 1920 earnings) 453,916.73
1,232,573.22 m
14,945,082.17 m
Contingent Liability payable over four years for balance of purchase
price for assets of Simeon L. and George H. Rogers Company, which
will be reduced proportionately as dividends afe paid on Preference
Slock of this Company held by former shareholders of Simeon L. and
George H. Rogers Company, $62,384.00.
AUDITORS' CERTIFICATE |
We have audited the accounts of Wni. A. Rogers, Limited (and Wm. A. Rogers, Limited, of California), for the year ending 31st December, m
1920. and we certify that in our opinion the above Balance Sheet is properly drawn up so as to exhibit a true and correct view of the Company s g
alTalrs according to the best of our information and the explanations given us and as shown by the books of the Company. g
We have received all the information and explanations wo have required. ^
CLARKSOX, GORDON & DILWORTH, Chartered Accountants. g
At the Twentieth Annual Meeting of Shareholders held on February 18th, 1921, the President, Mr. S. J. Moore, |
reviewed at length the Company's operations of the past year. m
The Board of Directors was re-elected, as follows: S. J. Moore, W. D. Ross, Charles W. Colby, Ph.D., Hon. W. j
Caryl Ely, Hon. Holland S. Duell, R. E. Sage and E. G. Baker. M
The officers were re-elected, as follows: S. J. Moore, President; W. D. Ross, Vice-President; R. E. Sage, General g
Manager, and E. G. Baker, Secretary. ^30 g
lllllllllllllllllllllllllllllllllllllllllllllllllllllllllliilllllllllllllllllllllllllllllllllllllllllllllllllH^
THE MONETARY TIMES
Volume 66.
ORGANIZED FAKMEKS' MOVEMENT IS ECONOMIC
Tolitical Activity Not Part of Early Plan — Some Keal Im-
provements Have Resulted from Grain Growers' Move-
ment— Special Privileges of Manufacturers are
Now Contested
By Angus Lyell
THE decision of the organized farmers to enter the political
field as an independent body is but the development of a
movement which was primarily and is essentially industrial
and economic. Direct political action was not, as far as I
can see, the result of a carefully prepared plan. Rather
was it forced on some of the leaders of the movement. Since
the grain growers' movement originated- — on December 18th,
1901 — the theory expounded has been that the farmers could
take care of themselves through the creation of industrial
associations, by exercising pressure on provincial or federal
politicians, of both the old parties, to effect desired political
reforms, chiefly shipping and marketing facilities for the
grain crop and tariff reductions on agricultural machinery
and certain necessaries of life.
To-day, political activities are hardly similar, even in the
three prairie provinces, where conditions may well be com-
pared. There may be unity of effort on federal matters, but
not on provincial. While in Alberta a fairly strong organi-
zation is being developed for a contest in both fields, there
is little enthusiasm in Saskatchewan for a provincial fight.
Conditions in Manitoba are well reflected in the result of the
recent election. The "locals" there were evidently not very
keen in defeating the Liberal administration, which had given
them legislation pretty much according to their demands.
The Rural Credits Act may be cited as an illustration.
Since first issued in June, 1908, the policy of the "Grain
Growers' Guide," the main organ of the organized farmers
in the west, has been governed by the resolutions passed at
the annual conventions of the grain growers. The paper
has discussed economic and social problems from the view-
point of the farmers. It has endeavored to unify them in
opinion, to secure combination and co-operation in order that
they might produce and market their crops to the best ad-
vantage. There has been nothing altruistic in this policy,
which has been essentially a class one, fundamentally in-
dustrial.
Entered Commercial Field
While the grain growers' movement originated in De-
cember, 1901, it was not until 1906 that commercial business
was undertaken. Since then, however, the farmers' indus-
trial ventures have met with a good deal of success. The
Grain Growers' Grain Co. was launched in Manitoba in 1906;
the Saskatchewan Co-Operative Elevator Co. in Saskatche-
wan in 1911; and the Alberta Farmers Co-Operative Co. in
Alberta in 1913. In 1917, the Manitoba and Alberta com-
panies merged under the name of the United Grain Growers,
Ltd. The Saskatchewan company, however, still retains its
separate entity.
These companies mai-ket a large part — perhaps over one-
third of the western grain crop. They have two public and
two private elevators at the lake ports and over 600 inland.
They have machinery and flour warehouses, coal sheds and
so on. An export business is even transacted in New York
by the United Grain Growers, Ltd. In Saskatchewan, the
Grain Growers' Association has a business department, which
acts as a wholesale house for numerous local associations
which deal in farm produce and other products.
Long before the organized farmers decided to enter the
political field, their organizations were helping to mold poli-
tical thought on industrial matters. Back in 1910, when Sir
Wilfrid Laurier made a tour of the west, "The Guide," the
mouthpiece of the Grain Growers' Associations, was empha-
sizing the need of tariff revision. The Canada Grain Act,
which provides regulation of teiininal elevators, was passed
largely because of their efforts, and it is doubtful whether
we would have had government elevators at certain import-
ant points — Calgary, Moose Jaw, Saskatoon, Fort William
and Port Arthur — but for them. Every fair-minded person
must admit that the grain business has been placed on a
sounder and more equitable basis mainly through the agita-
tion of the Grain Growers' Associations.
The bone of contention to-day is the protection afforded
manufacturerE, ei;jecially. The outlay of the average farmer
for machinery — agricultural implements — is considerable,
taking into consideration the risks involved in grain growing
in the prairie provinces. And the sparks of discontent have
been fanned into a flame by the action of the Canadian manu-
facturers in exacting the highest possible price for their im-
plements, taking into consideration United States competi-
tion. In taking a firm stand on the question of the tariff, the
farmers' motive is hardly one of altruism. Rather is it a
case of bread and butter.
It cannot be denied, I think, that there is a large body
of farmers in the west, as well as the east, who do not see
eye to eye with Messrs. Crerar, Chipman and Co. The presi-
dent of the United Grain Growers,' Ltd., has a considerable
following. So has the worthy editor of "The Guide." But
outside of these groups are other groups, more daring and
independent in spirit.
Political Action to be Local
It was, for example, largely because of the efforts of the
members of the Non-Partisan League that the United
Farmers of Alberta decided to take political action both in
the provincial and federal fields. But while the Non-Parti-
sans in Alberta sunk their identity for the sake of unity,
they are still engaged in active propaganda in Saskatchewan.
The decision reached at the Farmers' Inter-Provincial con-
vention held in Winnipeg last winter is still fresh in the
memory. It was agreed that, on the question of provincial
action, the "locals" in each province would do as they thought
best. There was to be no overhead control for a very good
reason.
But even if disruption should in time wreck the political
movement, through conditions which may develop, yet such
might not lessen the industrial power of the organized
farmers.
So far the farmers have met with marked success in
their industrial ventures. The United Grain Growers, Ltd.,
and the Saskatchewan Co-Operative Elevator Co. are both
making rapid progress. These concerns are in name co-opera-
tive; but their members are limited to a class — a clannish
class. What if they should grow weary of acting merely as
distributors of commodities ? What if they should undertake
the manufacture of farm machinery and implements? What
if they should decide to produce everything essential, barring
luxuries, to life on the farm ? I cannot see that there is
anything particularly altruistic about the farmers' move-
ment, whether political or industrial. The farmers are out
to secure better living conditions for themselves, and who
can blame them? Their, lot is sometimes severe enough.
And, perhaps, we should be near to a solution of the tariff,
problem if their own concerns engaged in manufacturing.
Some argue that there is danger of over-expansion; that
the farmers in business will undertake too many things, on
too big a scale, with final disastrous results.
There is both trath and error in this. For continued
advance, expansion and prosperity, efficient management is
essential. This factor is even more important than either
labor or capital. With efficient management, labor can be
obtained and capital secured. The question then is: Can tht
organized farmers secure and retain able men to direct their
affairs? If they can, what is there to prevent them fron
controlling certain branches of industrial activity? M
Chipman, as editor of "The Guide," could boycott all the in-
plement houses in the east, and likely would, if the farmeis'
own associations could produce the goods. He is proud of
the clannish spirit evinced by his readers and adherents.
The farmers' political activity is, as far as I can s<e,
dependent wholly on the larger industrial and economic move-
ment. It is in this light, I think, that it should be considend.
February 18, 1921 THSMONETARYTIMES 35
|iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiin^
I F. N. BURT COMPANY, LIMITED |
I Report of the Directors to the Shareholders for the |
I Year Ended December 31, 1920 I
The Directors present to the Shareholders their Twelfth Annual Report with the accompanying statement of
Assets and Liabilities as of December 31st, 1920:
Balance brought forward from 1919 $713,044.81
Less Federal Taxes on 1919 earnings paid in 1920 125,087.73
$587,957.08
Profits for the year 842,712.05
$1,430,669.13
The appropriations were as follows:
Transferred to Realty and Plant Reserve $208,477.87
Written off Patents — ; 23,201.42
Dividends on Preference Stock, Nos. 42, 43, 44 and 45, at the rate of 1% per annum 119,754.25
Dividends on Common Stock, Nos. 41 and 42, at the rate of 8% per annum, and 43 and 44 at
rate of lO^f per annum 94,378.25
445,811.79
Balance carried forward to 1921 $984,857.34
The year's profits have been afrived at after writing down the inventories to present replacement values. The
sluinkage has been charged off in the year's operations. In view of this, it is gratifying to be able to report that the
profits are the largest in the Company's histoi-j-.
In accordance with the policy adopted a year ago, the balance in the Profit and Loss account is subject to deduc-
tion of Federal Taxes on the 1920 profits, the amount of which cannot be determined accurately at this time.
Commencing with the Octdber 1st payment, the rate of dividend on the Conimon Stock was increased from 8%
to 10';. Dividend payments on both classes of stock aggregate for the year $214,132.50, which is about one-third of
the year's profits. All dividends were paid in New York funds.
Additional Preference Shares to the amount of $420,200 were converted into Common Shares during the year.
Up to date a total of $528,700 of Preference Stock has been converted.
Incoming business fell off during the last quarter, but we have entered the year 1921 with a substantial amount
of orders on hand and look for a satisfactory volume of profitable business.
By order of the Board:
S. J. MOORE, President.
Statement of Assets and Liabilities, December 31, 1920
ASSETS LIABILITIES
Ito.Tl Eslali- ,ind Buildings $ 879.030.3S Capital Stock Issiii'.l . „ „
Plant. Marhlner.v and Equipment 1.431.6SH.36 Preference Stmk $1,446,300.00
Inve.stmcnts In Other Compnnles 23.246.33 Common Stock - 1,278,700.00
Patents and OoodwUl 831,322.48 $2,725,200.00
$3,165.2n3.5.'i Dividends payable .lanimry" 3, 1921:
Dividend on Preference
Mercliandlse $1,188,587.63 Slock Xo. 45 $25,322.50
Prepaid Expense 41,545.01 Dividend on Common
.Vc.mnts and Bills Receivable 461,077.86 Stock No. 44 31.9o5.00 „ „„ .„
m.), 248,792.74 » }l^l'-f.
■ 1,938.003.24 Accounts and Bills Pa.ViiMe 502,670.94
559,948.44
Mortgages on Properties purchased 95.000.00
Realtv and Plant Reserve r09,106.01
Other Reserves 29,185,00
Profit and Loss Account (subject to
Federal Taxes on 1920 earnings) 984.857.34
1.;
AUDITORS' CERTIFICATE
We have audited tlie accounts of F, X. Burt Company, Limited, for the year ending 31st December, 1920, and we certify that in our opinion
tlio above Balance Sheet is properly dravra up so as to eihlbit a true and correct view of the Company's affairs according to the best of our Infor-
mation and the explanations given us and as shown by the books of the Company.
We have received all the information and the explanations we have required. CLARKSON, GORDON & DILWORTH,
Chartered Accountants.
Kt the Twelfth Annual Meeting of Shareholders held on February 18th, 1921, the President, Mr. S. J. Moore,
reviewed at length the Company's operations of the past year.
The Board of Directors was re-elected, as follows: S. J. Moore, A. E. Ames, F. N. Burt, Hon. W. Caryl Ely,
James Ryrie, Alfred Jephcott, Wm. Findlay, Ph.D., and Hon. Holland S. Duell.
The officers were re-elected, as follows: S. J. Moore, President; A. E. Ames and F. N. Burt, Vice-Presidents; E. G.
Baker. Secretary, and W. N. MacLeod, Assistant Secretary.
THE MONETARY TIMES
Volume 66.
ST. JOHNS MUTUAL HIE ASSOCIATION
The annual report of the St. John's, Nfld., Mutual Life
Association shows that there were ten deaths in 1920, while
twenty-six new members were added, bringing the total up
to 433. After paying death claims and current expenditure
there is a balance to curi-ent account of $67, which, with the
reser\'e fund of $5,036, makes a total of $5,103.
last.
LONDON AND WESTERN TRUSTS CO.
Twenty-four years of experience as a corporate trustee
has brought the London &nd Western Trusts Co., Ltd., to a
position of prominence among our Canadian trust companies.
Total assets of the institution are now $11,849,024, being an
increase of $736,491 for the year. Estates, trusts, etc., under
administration by the company at the end of 1920 amounted
to $10,196,473, as against $9,719,849 for 1919.
From the profits standpoint the company's operations
were successful, net earnings totalling $73,932, compared with
$66,327 for 1919. The usual dividend of 7 per cent, was
paid and $30,000 was transferred to reserve. There is a
subscribed and fully-paid capital of $500,000, while the re-
serve fund is $220,000.
FURTHER PRICE DECLINE IN JANUARY
The index number of wholesale prices constructed by
Professor H. Mitchell, of McMaster University, Toronto,
based on 40 commodities, 20 foodstuffs and 20 manufac-
turers' goods, stood at 212.6 for the month of January, a
decline of 4 per cent, over the previous figure of 221.6 for
the month of December, and a decline of 28.7 over the peak
of 298.3 reached in May, 1920. Among the manufactured
commodities declines were registered in rubber, cotton, silver,
tin and hard maple. In foodstuffs, flour, lard, whitefish,
coffee, potatoes, beans, canned peas, eggs and tapioca de-
clined, while butter and cheese advanced slightly.
The remarkable regularity of the decline, amounting
almost exactly each month to 4 per cent, from the peak, is
to be noted. The deflation of wholesale prices is proceeding
rapidly and without any disastrous break in the market, a
most healthy and normal proceeding. Little expectation can
be held out for any halt in the fall until the spring.
EASTERN CANADA SAVINGS AND LOAN COMPANY
Another year of pleasing results was experienced by
the Eastern Canada Savings and Loan Company, Halifax,
N.S. Receipts for the year amounted to $153,580, as against
$139,295 in 1919. Net profits were $69,181, as compared
with $58,313 in the previous year. The usual dividend of 8
per cent, was paid, and $14,335 was transferred to the re-
serve fund. Income tax for 1920 amounted to $7,345 and
lessened the net profit on the average capital, which was
$547,833, by 1% per cent.
Loans to borrowers for the year came to $497,500, all
the available funds of the company being constantly em-
ployed. Outstanding debentures and deposits were con-
siderably lower at $1,155,870, compared with $1,322,494, but
new funds were secured by calls on subscribed capital, which
approximated $100,000 during the year. The paid-up capital
is now $600,000, and the reserve and contingent fund is
$292,000. Mortgage loans outstanding are now $1,995,486,
compared with $1,942,382 at the end of the previous year,
while real estate on hand has been reduced from $12,535
to $8,747.
Total assets are $2,208,184, compared with $2,320,106
previously. The decrease is largely the result of the man-
ner in which the company shows its capital stock in the
balance sheet. The sale of the Metropole Building was
also a factor in the reduction of assets, the proceeds being
carried to j-e8e>'ve.
Canada Cement Company
LIMITED
Consolidated Balance Sheet, December 31st,
ASSETS
PEOPERTY ACCOUNT :
Laad, Buildings, Plant. Equipment, etc.,
at original cost with subsequent addi-
tions, less Depreciation to date $28,
INVESTMENTS :
Bonds $ 2,352.128.71
Stock held in other Companies 393.002.00
2,
CALL LOANS (Secured) _
CURRENT ASSETS:
Inventories _. f 3.746.605.49
Accounts Receivable (Less Bad Debts Re-
serve) _ „ „
Bills Receivable _
Deposits on Tenders
Cash _.._
DEFERRED CHARGES TO OPERATIONS.
1920
815,267.45
11,245.30
19,041.50
69,095.05
1,661,254.79
93,325.19
LIABILITIES
CAPITAL STOCK :
Authori2ed:
Preference— 110,000 Shares 7% Cumulative
of 5100.00 each $11,000,000.00
Ordinary— 190,000 Shares of $100.00 each 19.000,000.00
$30,000,000.00
Issued:
Preference — 105,000 Shares 7% Cumulative
of SIOO.OO each , $10,500,000.00
Ordinary— 135,000 Shares of $100.00 each 13,500.000.00
FIRST MORTGAGE SIX PER CENT. TWENTY-
YEAR GOLD BONDS:
Authorized and Issued ..'. „ $ 8,000.000.00
Less : Redeemed through Sinking Fund 1,653,739.90
CURRENT LIABILITIES :
Accounts Payable $ 1,949.475.96
Bank Loan 275,000.00
Bond Interest Accrued at December 31, 1920 95,193.90
Preferred Dividend No. 44 payable Feb. 16,
1921 183,750.00
Ordinary Dividend No. 19 of 1%% paid
Jan. 15, 1921 202,500.00
RESERVES :
Fire Insurance $ 1,151.635.77
Extraordinary Repairs and Renewals 275,000.00
Cotton Sacks outstanding 150.000.00
Industrial Accidents 60,500.00
Contingent Reserve (a portion of which Is
available for Government Taxes for the
years 1919 and 1920) 650,000.00
SURPLUS.
Balance December 31, 1919 $ 1,424,857.62
Income from Operations and In-
vestments for the year 1920. $2,362,742.13
Deduct:
$810,491.32 for Depreciation
392.621.99 for Bond Interest and
140.515.95 for Fire Insurance
(Transfer to Reserve
Account) 1.343,629.26
1,019,112.87
Deduct: Dividends —
On Preferred Stock $735,000.00
On Common Stock 810,000.00
$2,443,970.49
$36,238,286.22
AUDITORS' REPORT TO THE SHAREHOLDERS
We have examined the Books and Accounts of the Canada Cement
Company Limited for the year ending December 31st, 1920, and have
obtained all the information and explanations which we required : and
we certify that in our opinion the above Balance Sheet at December
31st, 1920, is properly drawn up so as to exhibit a true and correct
view of the state of the Company's affairs, according to the best of our
information and the explanations given to us and as shown by the
books of the Company.
PRICE. WATERHOUSE & CO..
Approved on behalf of the Board : Auditors.
Montreal, February 8th, 1921.
February 18, 1921
THE MONETARY TIMES
37
The London and Canadian Loan and
Agency Company Limited
FORTY-SEVENTH ANNUAL MEETING
The Forty-seventh Annual General Meeting was held in
the Company's Head Office, 51 Yonge Street, Toronto, on
Wednesday, February 9th, at 12 oclock noon.
The President, Mr. Casimir S. Gzowski, occupied the
chair and the Secretary, Mr. William Wedd, acted as Secre-
tary of the meeting. Messrs. D'Arcy D. Grierson and W.
Ridout Wadsworth were appointed Scrutineers.
The Annual Report was unanimously adopted, and also
the statements for the year ending 31st December, 1920, as
presented by the Manager, Mr. V. B. Wadsworth. The report
was as follows: —
The Directors have pleasure in submitting to the Share-
holders the 47th Annual Report of the Company and the
Statement of Accounts for the year ending 31st December,
1920, the result being as follows: —
The gross revenue, including the balance ($25,-
618.97)) brought forward from last year,
amounted to ?385,269.49
And, after deducting the cost of management,
interest on Debentures, Dominion, Provincial
and Municipal Taxes (including War Tax)
and other charges, amounting in all to 211,728.91
There remains a net profit of $173,.540.58
Out of which four quarterly dividends have been
paid at the rate of 9 per cent, per annum,
amounting to 112,500.00
Leaving a balance of $ 61,040.58
Of which $50,000 has been transferred to the Company's
"Reserve Fund," and $11,040.58 is carried forward at the
credit of "Revenue Account" to next year.
The Reserve Fund now amounts to $1,000,000, being 80
per cent, of the subscribed and fully paid-up Capital Stock
of the Company.
During the year applications for loans on mortgages were
accepted and renewed to the amount of $734,995 on real
estate valued at $1,924,000.
The total assets of the Company are now $5,067,253.
The Company's business was well maintained during the
past year, and the returns therefrom proved satisfactory.
During the year the death occurred of Mr. Thomas Long,
a member of the Board of Directors and former President
of the company. Mr. Long's efficient and valuable ser%nces,
covering a period of upwards of twenty years, proved of much
advantage, and assisted greatly in the upbuilding of the
Company. The vacancy on the Board has been filled by the
election of Mr. Gerard" B. Strathy.
The Directors desire to acknowledge the continued valu-
able services of the Scottish Board and Agents. *
The various officers of the Company performed their
duties faithfully and to the satisfaction of the Directors.
The books, accounts, vouchers and securities have been
iluly examined by the Auditors, and their certificate of audit
is hereto appended.
C. S. GZOWSKI, President.
Toronto, January 18th, 1921.
ASSETS AND LIABILITIES, 31st DECEMBER. 1920.
Assets.
Real Estate held for sale ... $ 18.180.00
Mortgages —
Principal (including $32,858. ni connection
with which legal proceedings have been
taken), $4,207,633.89; Interest. $186,-
.333.20 4,393,967.09
Loans on Stocks 5,138.45
Dominion of Canada Securities 228,314.53
Canadian Municipalities and School District De-
bentures 133,606.67
Cash in Chartered Banks 288,046.58
(In addition to the above, the Company hold, as
Agents for the benefit of certain clients,
mortgages to the amount of $22,611.11).
Liabilities.
To the Public:—
Debenture Stock, and accrued in-
terest $ 416,534.55
Debentures and Certificates pay-
able at fixed dates, and ac-
crued interest 2,357,838.12
Sundry Accounts 3,715.07
To the Shareholders: —
Capital Stock sub-
scribed $1,250,000.00
Capital Stock fuRy paid $1,250,000.00
Reserve Fund 1,000,000.00
Dividend payable 3rd January,
1921 28,125.00
Balance at Credit of Revenue Ac-
count carried to next year. . . 11,040.58
2,778,087.74
2,289,165.58
$5,067,253.32
REVENUE ACCOUNT FOR THE YEAR ENDING
31st DECEMBER. 1920.
Dr.
Cost of Management, including
Head Office expenses, Inspec-
tion Charges and Directors'
and Auditors' Fees
Commission on Debentures Issued
and Loans Effected during the
year, and Agency Charges in
Edinburgh, Winnipeg and the
Northwest
Debenture and Certificate Interest
paid and accrued to 31st De-
cember, 1920
Dominion, Provincial and Munici-
pal Taxes (including Dominion
War Taxes, $15,859.70)
Dividend No. 116, paid 1st April,
1920 (2'.,%)
Dividend No. 117, paid 2nd July,
1920 {2Vi%) .".
Dividend No. 118, paid 1st Octo-
ber, 1920 (2U%)
Dividend No. 119, payable 3rd Jan-
uary, 1921 (2\i'-/c)
$ 26,055.20
28,
138
633.55
,114.58
,925.58
$ 28,125.00
28.125.00
28,125.00
28,125.00
112,
50
,500.00
,000.00
Amount transferred to Reserve Fund
Balance at Credit of Revenue Account carried
to next year 11,040.58
Cr.
$ 385,269.49
Balance at Credit of Revenue -Account, 31st
December, 1919 $ 25,618.97
Net Interest, etc., received and accrued to 31st
December, 1920 359,650.52
$ 385,269.49
1920.
December 31st — By Balance carried to next year $ 11.040.58
Audited and found correct.
J. GEORGE. F.C.A. (Can.)
RUTHERFORD WILLIAMSON, C.A.
Auditors.
$5,067,253.32
The Auditors. Lieut.-Col. James George, F.C.A. (Can.),
and Mr. Rutherford Williamson. C.A.. were reappointed.
The following gentlemen were elected Directors for the
ensuing year: Casimir S. Gzowski. Charles C. Dalton, Archi-
bald H. Campbell, G. Larratt Smith, Colin M. Black, W.S.,
William C. Noxon and Gerard B. Strathy.
At a subsequent meeting of the newly-elected Board Mr.
Casimir S. Gzowski was elected President and Mr. Charles
C. Dalton Vice-President. 421
THE MONETARY TIMES
Volume 6G.
DEBENTURES FOR SALE
CITY OF TRAIL, B.C.
Sealed tendci-s, marked "Tender on Debentures," will be
received by the undersigned up to 8 p.m. on Monday,
March 7th, 1921, for .$37,000 7% 20-years straight-term
waterworks debentures. Denomination, $500.00. Interest pay-
able semi-annually. Principal and interest payable in Trail,
Toronto or New York, at option of holder. Interest coupons
attached
WM. E. B. MONYPENNY,
415 City Clerk.
TOWN OF WALKERVILLE
DEBENTURES FOR SALE
Sealed tenders addressed to the undersigned and marked
on the outside, "Tenders for Debentures," will be received
up to nine o'clock in the forenoon of Thursday, the 24th day
of February, 1921, for the purchase of the following deben-
tures and accrued interest: —
$85,000, part of an issue of $100,000 for Paving. The
whole issue payable in fifteen equal annual instalments of
principal and interest, of which the amounts in the schedule
IdcIow will be sold. These debentures caii-y interest at the
rate of 6% per annum. This issue has been approved by the
vote of the ratepayers.
Schedule of amounts: —
1921— $4,296.27 1926— $5,749.38 1931— $7,693.97
1922— 4,554.06 1927— 6,094.35 1932— 8,155.61
1923— 4,827.30 1928— 6,460.01 1933— 8,644.95
1924— 5,116.94 1929— 6,847.61 1934— 3,163.65
1925— 5,423.96 1930— 7,258.47 1935— 713.47
Debentures will be delivered and must be settled for at
the office of the Town Treasurer, Walkerville, Ont.
All debentures "are Coupon-bearer, issued in $1,000 and
odd amounts, and carry interest from December 14th, 1920.
Principal and interest payable at the Canadian Bank of Com-
merce, Walkerville, on December 14th in each year.
The highest or any tender not necessarily accepted.
For any further information, address: —
A. E. COCK,
Town Clerk,
Box 329, Walkerville, Ont.
Population 7,469
Assessed Valuation for Taxation $11,304,884.00
Total Debenture Debt 865,357.20
Less: —
Local Improvements 144,993.21
Electric Light 145,067.71
General Debenture Debt 575,296.28
Total Assets, December 31st, 1919 833,219.25
Mills.
General Rate, 1920 21.39
School Rate, 1920 10.61
Total Rate, 1920 32.00
434
CITY OF TORONTO
$5,037,000 SERIAL BONDS
Sealed tenders, endorsed "Tender for City of Toronto
Bonds," addressed to Thomas L. Church, Esq., K.C., Mayor
and Chairman of the Board of Control, will be received by
the undersigned until 12 o'clock noon, Tuesday, 22nd Feb-
ruary, 1921, for the purchase of $2,500,000 serial bonds, issued
on account of the acquisition and rehabilitation of the To-
ronto Railway Company, also $2,537,000 serial bonds issued
for school purposes.
Full details as to the purposes for which the bonds are
issued, and amounts maturing annually, together with finan-
cial statement of the City, will be furnished on application.
The legality of the issues has been approved by Mr. J. B.
Clarke, K.C., Toronto, and his favorable opinion will be
engraved on each bond.
The bonds are an obligation of the City at large, are
issued in coupon form, with provision for registration of
principal, and are of the denomination of $1,000.
They are payable both as to principal and interest in
Toronto, and carry interest at the rate of 6% per annum,
payable half-yearly.
Engraved bonds will be ready for delivery on or abbut
March 7th, 1921. Delivery and payment, with accrued in-
terest, are to be made at the office of the undersigned.
Tenders will not be received for any part, but must be
for the entire issue.
A certified cheque, payable to the undersigned, for 29^
of the par value of the bonds tendered, must accompany the
tender.
Tenders specifying for bonds other than those herein
described, or containing conditions varying from the above,
will not be considered.
The right is reserved to reject any or all proposals.
GEO. H. ROSS,
Commissioner of Finance.
Treasury Department,
City Hall, Toronto, Canada, February 10th, 1921. 416
Condensed Advertisements
" Positions Wanted." 3c per word : all other condensed advertisements
5c. per word. Minimum charge for any condensed advertisement. 65c
per insertion. All condensed advertisements must conform to usual
Style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance ; 50 per cent, extra if charged.
EXECUTIVE. — Age 35. Twenty years' experience.
Eight years in Railway Operating and Construction Depart-
ment, twelve years in Accounting Department, past five
years as General Auditor. Expert Accountant, thorough
knowledge of railway and construction materials, well in-
formed in financial matters, seeks engagement. Box 381,
Monetary Times, Toronto.
During 1920 the number of automobiles registered in
Canada totalled 402,929. These cars were distributed among
the various provinces as follows: Ontario, 172,065; Sas-
katchewan, 60,325; Quebec, 43,450; Alberta, 37,515; Manitoba,
36,455; British Columbia, 28,136; Nova Scotia, 12,456; New
Brunswick, 11,101; Prince Edward Island, 1,426; total, 402,-
929. In 1907 the registrations totalled 2,130, made up as
follows: Ontario, 1,530; Saskatchewan, 54; Quebec, 254; Al-
bert,t, 55; British Columbia, 175; Nova Scotia, 62.
SECRETARY-TREASURER of large company in British
Columbia desires connection in similar capacity with
well-established company in Ontario, Hamilton preferred.
First-class accountant, with excellent credentials; the more
responsibility to be assumed, the better. Prepared to go
east immediately for interview for any legitimate proposi-
tion. Apply by wire or letter to H. Anscomb, 1921 Govern-
ment Street. Victoria, B.C. 405
February 18, 1921
THE MONETARY TIMES
39
National Appraisal Co
BOSTON MONTREAL NEW YORK TORONTO
THE ADMITTED AUTHORITY ON VALUATIONS
in the United States and Canada for
Fire Insurance, Banking, Bonding, Incorporation, Cost Accounting,
Income Tax, Estates Settlements, Transfer Tax and Other Uses
IVrile anjj Office for further information
NEW JERSEY INSURANCE CO.
BALTICA INSURANCE CO.
PENINSULAR FIRE INSURANCE CO.
Limited.
O'KEEFFE & LYNCH. OF Canai
MARINE MANAGERS
3 Victoria Street
TORONTO
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
C.ible Address. Topeco
and A.B CSth Edition
CALGARY, CANADA
The Standard Agencies, Limited
Head Office
CALGARY, ALBF.KTA
Money to Loan on Improved Farm Lands and City Properties
in Western Canada. A. J. SCOTT. Gen. Manacer
DIVIDENDS A>D NOTICES
BANK OF MONTREAL
Notice is iiereby given that a Dividend of Three Per
Cent, upon the paid-up Capital Stock of this Institution has
been declared for the current quarter, payable on and after
Tuesday, the First Day of March next to Shareholders of
record of 31st January, 1921.
By Order of the Board.
FREDERICK WILLIAMS-TAYLOR,
General Manager.
Montreal, 21st January, 1921. 373
THE CANADIAN BANK OF COMMERCE
DIVIDEND No. 136
Notice is hereby given that a dividend of Three per cent,
upon the capital -stock of this Bank, being at the rate of
twelve per cent, per annum, has been declared for the quarter
ending 28th February next, and that the same will be pay-
able at the Bank and its Branches on and after Tuesday,
1st March, 1921, to shareholders of record at the close of
business on the 13th day of February, 1921.
By Order of the Board.
JOHN AIRD, General Manager.
Toronto. 21st January. 1921. 279
(A.NADIAN l'A(Illt RAILWAY COMPANY
DIVIDEND NOTICE
.\t a meeting of the Board of Directors held to-day the
following dividends were declared: —
On the Preference Stock, two per cent, for the half-year
ended 31st December last;
On the Common Stock, two and one-half per cent, for
the quarter ended 31st December last, being at the rate of
seven per cent, per annum from revenue and three per cent,
per annum from Special Income Account;
Both dividends are paya.ble 1st April next to Stockholders
of record at three p.m. on 1st March next.
By order of the Board.
ERNEST ALEXANDER.
Secretary.
Montreal. 14th February, 1921. 426
The British-American Bond Corporation has purchased
a seat on the Vancouver Stock Exchange.
The Standard Reliance Mortgage Corporation, by Liqui-
dator G. T. Clarkson, and the Standard Reliance Assets, Ltd.,
on January 12 issued a writ against the London Loan and
Savings Co., and J. Kent, and the Dovercourt Land, Build-
ing and Savings Co., asking for an accounting concerning
certain mortgage securities, their recovery, and to discharge
a mortgage made in March, 1914, for $120,000 from the
Standard Reliance to the London Loan Co.
THE ]\IONETARY TIMES
Volume 66,
Corporation Finance
Increased Cost of Production Curtailed Operations and Profits of Canada Cement — Maritime
Telegraph Net Revenue Increased — Woods Manufacturing Company Had Deficit — Power Com-
panies Experienced Good Year — Winnipeg Electric Railway^Makes Best Showing Since 1914 —
Mackay Companies' Results Were Satisfactory — Provincial Paper Statement Reflects Prosperity
International Nickel Co. — Net profits of the company
for the nine montlis ended December ol, 1920, amounted to
$2,620,870, which is in excess of $800,000 above the total net
profits reported in the corresponding period the year before.
The profits for 11)20 were equal to $1.33 per share on the
$41,834,600 common capital stock of $25 par value outstand-
ing. This amount compares with 83 cents per share earned
in 1919. Total earnings for the period approximated $4,415,-
000, but i-.-lter payment of taxes, reserves for depreciation
and other items deducted, the amount was reduced to $2,-
(;20,000.
The balance sheet as of the close last year shows a
rather sharp increase in inventory, that account standing
at $11,764,000, as ag&inst only $7,890,000 at the close of
1919. Cash on hand totalled $1,737,997, as compared with
$3,137,000, while the profit and loss surplus aggregated $12,-
611,040. At the end of 1919 this item amounted to $9,579,146.
Woods Manufacturing Co., Ltd.— The financial state-
ment of the company, submitted at the annual meeting this
week, shows a deficit from operations at December 31, 1920.
Profit and loss account compares as follows: Surplus balance
from previous year, $1,385,664, compared with $1,091,439;
loss from operations, $412,324, compared with profits of
$639,812; interest on bonds, $23,850, compared with $25,650,
ier..ving deficit of $559,332, less $12,596 profit from sale of
Winnipeg propei-ty, making total deficit $546,736. This de-
ducted from surplus balance leaves $838,928, from which are
deducted preferred dividend of $108,255 and dividends and
bonus on common of $214,825, making profit and loss sur-
plus for year $515,842, compared with $1,385,614 at end of
1919. Balance sheet shows current assets of $3,183,911, com-
pared with $5,113,391, and current liabilities ?..s $1,829,391,
against $2,949,151. Cash on hand and in banks is $22,198,
compared with $781, and working capital $1,354,520, com-
pared with $2,164,240. Following the annual meeting the
directors declared regular dividend of 2 per cent, on common
for quarter ending February 28, payable March 1, record
February 22.
Winnipeg Electric Railway Co. — Shareholders of the com-
pany were presented with the best statement of operations
since 1914 at the annual meeting in Winnipeg, showing a net
profit of nearly $600,000. The gross earnings of the com-
pany for 1920, from operations, totalled $5,233,700, with oper-
ating expenses, exclusive of depreciation charges of $3,428,-
897, leaving the net operating revenue at $1,804,803. Mis-
cellaneous income amounted to $76,700. Fixed charges
amounted to $1,084,928, leaving the net income, excluding
depreciation at $796,575. Included in the expenses under
fixed charges is the sum of $308,488 payable to the city of
Winnipeg. This payment to the city consists of $181,249
as the city's share of the operating revenue and car license
taxes and $127,239 as taxes.
The gross earnings for 1920 show an increase of $949,-
221 over the previous year, and the net income shows an
increase of $498,720. Sir Augustus Nanton, president of the
company in his report to the shareholders, referred with
satisfaction to the growth over the previous year. During
the year the company expended more th&n $900,000 in ex-
tensions and improvements, including the replacing of prop-
erty destroyed by fire.
The above are preliminary figures. More detailed results
will be given in these columns la:ter.
Public Service Corporation of Quebec. — As a subsidiary
of the Shawinigan Water and Power Co., the corporation
made good progress in 1920. Gross income for the year
amounted to $305,627, an increase of $42,222 over that of
1919 and of $63,292 over that of 1918. After deductions for
expenses, but before bond interest, net earnings were $116,-
557, against some $102,000 at the end of the preceding year,
Aftei- bond interest of $25,O0O the balance applicable to the
$1,600,000 outstanding capital stock amounted to $91,557, or
the equivalent of 5.72 per cent,, against $77,862, or 4.87 per
cent, in the previous period. The year's surplus added to
that of 1919 made $107,939 available for disposal.
In his review for directors, Julian C. Smith, the presi-
dent, says thr.t the company commenced to pay a 4 per cent,
dividend on September 30, 1919, and continued until March
31, 1920. For the last three quarters of 1920 has been pay-
ing 5 per cent. "It is a great source of satisfaction to
your directors," says Mr. Smith, "to feel that the affairs of
the company have warranted reaching a 5 per cent, dividend
within the relatively few years since the Public Service Cor-
poration of Quebec started operations."
Some of the changes in the balance sheet are:- —
1920. 1919.
General plant, etc $2,023,264 $2,023,264
Depreciation reserve 100,000 85,000
Surplus 3,939 16,382
Total assets ' 2,352,796 2,320,485
Provincial Paper Mills, Ltd. — Prosperity is reflected in
the annual report of the company for 1920, The figures
given, however, cannot be taken as actually comparing the
same scope of operations but can only be taken relatively,
as it was during last year that the complete absorption of
the Port Arthur Pulp and Paper Mills was effected, and the
1920 figures given the results of the consolidated operations,
while the 1919 report does not. The pi-ofit and loss statement
shows for the year, after allowing for 1921 war tax, of $1,-
225,775. This compares with $420,573 in 1919.
During the year, some $200,000 was set aside for depre-
ciation in buildings and plant, against $75,000 in the previous
year; and after paying preferred dividends and all other
charges, there was available for common dividends some
$890,903, against $223,408 in 1919. Some $257,500 was paid
in common dividends against $90,000 in the previous year;
and there was a surplus for the year of $633,403, against
$133,408 in 1919.
The balance sheet of the company shows a good cash
condition. Cash in hand totals $315,166, against $110,902:
and accounts receivable are set down at $811,600, against
$435,612, Victory bonds at market are placed at $396,800.
against $15,000. Current asset^ aggregate $1,791,052, against
$1,260,585, and surplus of current assets over current lia-
bilities exceeds one million dollars.
Laurentide Power Co., Ltd. — The annual statement pre-
sented to the shareholders at the annual meeting in Mont-
real this week, showed earnings equal to 4.12 per cent,,
against less than 4 per cent, the previous year. Net profits
were up $100,000 to $866,792. Expenses included an addi-
tional $59,000 premium on United States fun^s in paying
bond interest of $375,000, This, with taxes and a contingent
fund reserve, resulted in the reduction of surplus from $19.-
806 in 1919 to $3,340 for last year.
The balance sheet shows valuation of property at $18,-
886,435, up about $400,000, with a similar increase in total
assets at $19,272,683. Among the assets a cash item of
$198,2(30 the preceding year has been replaced by a bank
(Continued on page 5S)
February 18, 1921
THE MONETARY TIMES
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i CHARTERED ACCOUNTANTS I
nllllililMIMIMIIIIinillllllllllinilllllMMIIIIIIIIIIIIIIIIIIIIIIIIIIIIiniMIIUIIIIMIIIIIIIIIIIIMUIIIIIIIIIIMIIIIIIIIMMIIIUIIIUUIIIIIIIIIIIIIIIIIIIIIIIIII^
Baldwin, Dow & Bowman
CHARTERED ACCOUNTANTS
OKKICUS AT
Edmonton - Alberta
Toronto • • Ont.
CHARLES D. CORBOULD
Chartered Accoantant and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. ^Vinnipeg
Corrcspondtnts at Toronto. London. Eng.,
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
W. A I'.AWiir.N. C.
W.ilfsl,
\ F.C.A, Eniila
F. H, Kini), C.A.
nd and
BAWDEN,
KIDD &
CO.
Chartered
Accountants 1
CENTRAL BUILDING. VICTORIA
, B.C.
Branch a
Naaaimo, B.C.
Telesraphic a
"Nedwab.
nd Cable Address
• Victoria. B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON • ONTARIO
Hstahlishcd 188'J
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Chambers
Winnipeg, Man.
Arthur E. Phillips & Co.
Chartered Accountants
508-509 Electric Railway Chambers
WINNIPEG - - Man.
C.hlc Address—" Inravel."
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS,
24 King Street West - TORONTO
AND AT:-
HAMIUTON
WINNIPEG
CLEVELAIVU
RONALD,
GRIGGS & CO.
RONALD, MERRETT,
GRIGGS & CO
Charteretl A
Trtisi
counia
CS.LlQI
lis.AuJilors.
idators
Winnipeg, Toron
Montreal, Ne
to, Sask
w York
atoon,MooseJaw,
London, Eng.
SERVICE
Thome, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Specialists on Factory Costs ami Prooiction
C1T;j« 3420 H«m^r.'i!^°B'.d«. TORONTO
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
'WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING - TORONTO, CANADA
. C. S. TUHNKI
A.MES GRANT
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Chartered Accountants, Trustees.
Receivers, LiQuidators
Merchants Bank BIdg.. IS Wellington Street West ToronI
K. R. C. Clarkson , G. T. Clarks
H I) Ln.-lih:M-t |-.or-.1,.o I.stahlishud ISM t> i nilwnr
RUTHERFORD WILLIAMSON * CO.
chartered Accountants. Trustees and
Liquidators
86 Adelaide Street East, TORO.N'TO
604 McGlLL BulLDlNC, MONTRKAL
Cable Address -'WILLCO. •■
Represented at Halifax. St- Juhn. Winn
Vai
pe(^
HENRY BARBER & CO.
EstBbli>hed 1885
Chartered AccountantR
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunii Railway Building.
6 King Street We.l - TORONTO
HARBINSON & ALLEN
Chartered AccoL,r,lanh
408 Manning Chambers
TORONTO
Norman B. McLeod
Chartered Accountant
AUDITS INVESTIGATIONS
COST ACCOUNTING
803 Kent Bldg. - TORONTO
Phone MAIN 3914
THE MONETARY TIMES
Volume 66.
VOLUNTARY WINDING UP DOES NOT CONSTITUTE
INSOLVENCY
Supreme Court of Ontario Holds Dominion Winding-up Act
Cannot Apply to Company Being Voluntarily Wound
Up Unless it is Insolvent
IN a recent application to the Ontario Supreme Court by
certain creditors of a provincial company, it was held
that a company is not insolvent within the meaning of the
Dominion Act when it is in the process of voluntary winding-
up, and that when the insolvency is not proved, it is proper
to refuse an order under the Dominion Act at the instance
of a creditor for less than $600 when creditors to the extent
of more than $14,000 are opposed to a compulsory wind-
ing-up.
Justice Orde in his written judginent gives the facts
of the case and his opinions on the points in issue in the fol-
lowing words: —
"The Empire Timber Lumber and Tie Co., Ltd., is in-
corporated under the Ontario Companies Act and is now in
process of winding-up voluntarily under the provisions of
the Act, in pursuance of a resolution of the shareholders
passed on the .3rd July, 1920. The resolution also appointed
Mr. John S. Stewart liquidator. The company has a nominal
capital of $85,000. The evidence as to the nature and ex-
tent of the company's assets and liabilities is a little vague,
but it appears to have certain sawmills and equities in or
options upon timber lands and some lumber on hand, all
valued at approximately $35,000, with liabilities, secured
and unsecured, of about $30,000. The petitioners, Hal!
Brothers, Ltd., are creditors upon an overdue promissory
note for $591.70 and inteiest. No judgment has been re-
covered upon this note, nor has there been default for 60
days after demand made, under sec. 4 of the Dominion
Winding-up Act.
Insolvency Not Claimed
"The petitioners make no allegation of insolvency, but
rely solely upon the fact that they are creditors, and that
the company has passed a resolution to wind up voluntarily,
and ask that it be declared that the company is a corpora-
tion to which the provisions of the Winding-up Act are ap-
plicable and that the company ought to be wound up under
that Act.
"That the Court may make a winding-up order under
the Dominion Act against a provincial coi-poration which it
is proved has become insolvent is well-established. But the
petitioners claim that, without establishing insolvency, they
are entitled to have the company wound up under the Do-
minion Winding-up Act, R.S.C. 1906, ch. 144, para, (b) of
sec. 6 and paras, (b) and (e) of sec. 11. Section 6 declares
that the Act shall apply to "all incorporated trading com-
panies doing business in Canada wheresoever incorporated
. . . (a) which are insolvent; or (b) which are in liquidation
or in process of being wound up," etc. By sec. 11: "The
Court may make a winding-up order . . . (b) where the
company at a special meeting of shareholders called for the
purpose has passed a resolution requiring the company to be
wound up; ... or, (e) when the Court is of opinion that
for any other reason it is just and equitable that the com-
pany should be wound up."
"There is no doubt that, if the question depended upon
the mere construction of these sections, the Court would
have power to bring a provincial corporation within the Do-
minion Act on grounds other than insolvency. But the ques-
tion whether or not the Dominion Pai-liament can legislate
so as to force a provincial corporation into a compulsoi'y
winding-up on any ground other than bankruptcy or in-
solvency is, in my judgment, not yet clearly settled.
"Now, assuming for the sake of argument that, in the
exercise of its power to legislate upon the subject of 'Bank-
ruptcy and Insolvency,' under sec. 91 (21) of the British
North America Act, the Dominion Parliament can declare
that the passage of a resolution to wind up voluntarily ipso
facto makes the company insolvent, I am unable to see how
or where in the Winding-up Act it has so declared. Among
all the different conditions which the Act, by sec. 3, declares
shall be deemed to be insolvency, the voluntary winding-up
of the company is not mentioned. On the contrary, sec. 6
makes the Act applicable in two classes of cases: (a) when
the company is insolvent; and (b) wheh it is in liquidation or
in process of being wound up — showing that there may be
cases of liquidation or winding-up which do not necessai'ily
constitute insolvency. With all due respect to the decision
in the Manitoba case, I am utterly unable to follow the rea-
soning which leads to the conclusion that, because the Do-
minion Parliament has power to declare what shall constitute
insolvency, the Winding-up Act has in effect declared that a
voluntary liquidation or winding-up is 'a species of in-
solvency.' In my judgment, the Dominion Act has done no
such thing. If it has declared anything at all in this respect,
it is that a voluntary liquidation or winding-up may not in-
volve insolvency at all. In my judgment, the mere fact that
a provincial company is in process of voluntary winding-up
does not of itself make the company insolvent under the
Dominion Act.
"It was argued on behalf of the petitioners that the
Dominion Act gives power to wind up a provincial company
on grounds other than insolvency. But all the authorities
are agreed, I think, that the only basis for federal inter-
ference with the constitution of a provincial corporation is
its bankruptcy or insolvency.
"The petitioners object to the liquidator entering into a
contract for the cutting and sale of a quantity of lumber,
the details of which it is hardly necessary to go into here.
Creditors to the extent of over $14,000 appear to be willing
that the liquidator should be given an opportunity of trying
to realize the assets to the best advantage and are opposed
to a compulsory winding-up. Under these circumstances, I
do not think I ought, at the instance of a creditor for less
than $600, to make an order to wind up the company under
the authority of the Court."
BANQUE D'HOCHELAGA HELD LIABLE
On the principle that a creditor is liable for the de-
terioration of the thing pledged, the Quebec Superior Court
held that the Hochelaga Bank was responsible in damages
because it allowed the lapse of a policy of life insurance that
had been transferred to its Quebec branch as collateral
security for a certain indebtedness of Joseph Labonte, one
of its clients. The full value of the policy was sued for
($2,000), but the court considered the claim was exaggerated,
and ruled that the measure of liability was the redeeming
value of the instrument at the time the action was taken.
Labonte transferred the policy to the bank in 1905. The
annual premiums ($69.72) were paid by the bank half-yearly
until July, 1914, when, owing to forgetfulness on the part
of an official, the premium was left unpaid, and when the
policy was returned to Labonte after he had paid off his
indebtedness it was found to have lapsed. At the time he
was so ill that he could not be reinsured, and he took the
present action, alleging that the bank was liable to him for
the face value of the policy in good standing, namely, $2,000.
Labonte died during the instance, and his cause was taken
up by one Belanger, the curator of his estate.
The bank denied all liability, submitting that it made
no undertaking to pay the premiums on the policy, and,
though it indavertently neglected to do so in one instance,
which turned out to be fatal to the benefit, nevertheless this
omission did not incur legal liability for any loss to Labonte.
"Canadian Government Loans, Production Statistics,
Area and Resources of the Provinces," is the title of a booklet
just issued by the Dominion Securities Corporation, Toronto.
It shows, among other figures, the loans of the Dominion and
provinces.
February 18, 1921 THEMONETARY TIMES 43
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I REPRESENTATIVE LEGAL FIRMS \
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BRANDON LETHBRIDGE, Alta. PRINCE ALBERT
J. F. Kilgo
ur. K.C. G.H.
R. H. McQueen
Foster
KILGOUR, FOSTER & McQUEEN |
Barrittert
, Solicilort
Etc., Brandon
Man.
Solicitors for the B
Royal Bank of Canada
;ind Loan Society.
Assurance Company.
ink of Montreal
. Hamilton Pre
North America
The
vident
n Life
CALGARY
Charles F. Adams, K.C.
Bank o( Montreal BIdg.
CALGARY - ALTA.
VV. p. W. Lent Alex. B. .Mackay, M.A., LL B.
H I). Mann. M.A., LL.B.
LENT, MACKAY & MANN
BitrrUtcra, sollcltorit, Notartes, etc.
30.S Grain Kxchanee BldK . CalRary, Alberta
Cable Address. "Lenjo." Westtrn Union Code
Solicitors for The Standard Bank of Canada,
The Northern Trusts Co.. Associated .\lort-
WRIGHT & WRIGHT
Barristers, Solicitors, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. A. C. Kutherford, K
F. C. Jamieson. K.C. CI
S. H. McCuaiR Cecil Ruthe
LL.D.
, H. Grant
rford
RUTHERFORD, JAMIESON
& GRANT
BarriaterB, Solicitors, Etc.
514-18 McLeod BIdg. Edmonton, Alberta
Conybeare, Church & Davidson
Barristers. Solicitors. Etc.
Solicitors for Bank of Montreal. The Trust
and Loan Co. of Canada, British Canadian
Trustee. &c.. &c.
C. I"- P. Conybeare. K.C. H. W. Church, .MA.
K. R. Davidson. LL.B.
Lethbridge - • Alta.
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE - Alberta
MEDICINE HAT
K. H. Los... I. LB- ,1 W
LONG & SLEIGHT
BarriBtert, etc.
MEDICINE HAT and BROOKS, Alta.
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers. Etc.
Solicitors— Bank of .Montreal
Canadian Bank of Commerce
Moose Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER. B.C.
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT, SASK.
SASKATOON
C. L. DURIE. B.A. B .M. Wakfi.en.;
DURIE & WAKELING
Barristers and Soiicitors
Solicitors for the Bank of Hamilton. The
Great West Permanent Loan Co. The
Monarch Life Assurance Co.
Cannda Riilldlns «a4kaloon, Canada
TORONTO
G. W. MORLEY & COMPANY
Barristers. Solicitors, Etc.
802 Lumsden Building. Toronto
Solicitors for A. G. Spalding & Bros, of Can.,
Ltd.; A. ,r. Ueach Co. of Can., Ltd.; Dominion
Chautauiiuas. Ltd.. etc.. etc.
Special attention given to Corporation work
and collections.
Cable Address: ".Morley." Toronto
VANCOUVER
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
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Solicitors for Bank of .Montreal IBank of
British North America Branch)
Yorktbirc BiiiUing, 525 Seymour Si,. Vincouver. B C.
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Government and Municipal Securities
Wrilern Nank-tpal. 8rliool and ,SasliaCclienan Rural Trie-
pbnite Ce. debcDtures HpedallzeU In.
CORRESPONDENCE INVITED
Union Bank Building • WINNIPEG
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Elxchange
Calgary, Alta.
A. J. Pattison Jr. & Co.
Toronto Stock Exchange
Specialists Ui
lOS BAY STREET
.Montreal Stock Exchange
ilisted Securities
TORONTO
THE MONETARY TIMES
Volume 66
News of Industrial Development in Canada
Steel Expert Holds Out Encouragement for Producers — Predicts a World-
Wide Boom— Ojibway Subsidiary of. United States Steel Corporation is Making
Good Headway— Demand for Cement Will be Good, Says Manufacturer —
Peabody Company Tells of Good Demand and Better All-round Conditions
TN spite of the rather depressed feeling in the iron and
-'• steel industry at the present time there is no lack of
encouragement as to what there is in store for manufac-
turers. While in Toronto last week, E. P. Thomas, president
of the United States Steel Products Co., which is the ex-
port organization of the United States Steel Corporation,
stated that the steel requirements of the world are tremend-
ous. Works of major importance that could not be under-
taken during the war will take a huge tonnage of iron and
steel sooner or later. The latent demand, which will make
itself felt ultimately, will mean big business for producing
interests the world over.
It it evident that the Dominion, as one of the steel-pro-
ducing countries of the world, will be called upon to make its
contribution to the great demand, while present business
requirements and needs of the Canadian railways also point
to substantial expansion of the domestic trade. In the
United States, where the readjustment has proceeded far-
ther than in the Dominion, most of the large plants report
operations at fifty per cent, of capacity and upwards. Cana-
dian companies are not yet able to report such favorable
conditions, but the signs are unmistakable. About a month
ago the Dominion Steel Corporation reduced its wage scale,
and now announcement is made by the Nova Scotia Steel
and Coal Co. of a reduction of twenty per cent. Such a step
by these companies is a movement towards further stabiliza-
tion, and is necessary in bringing about a revival in busi-
ness. The Canadian plants have to meet American and
other competition, and with wages being cut at the Ameri-
can plants it would not be possible to do this without scal-
ing down the wages at the Canadian plants also.
Of late, very little has been heard of the development of
the Canadian Steel Corporation, Ltd., at Ojibway, Ont..
the Canadian subsidiary of the United States Steel Corpora-
tion, but some remarks made by Mr. Thomas show that big
progress is being made. In spite of the apparent tendency
to delay building operations, $4,000,000 has already been
spent, and two large blast furnaces are well on the way to
completion. Incidentally, it was also mentioned that whereas
the Ojibway plant would have cost $20,000,000 according
to the original estimates, the expenditure on the basis of
present prices would be fully $50,000,000. Mr. Thomas ha=
emphasized the fact that the subsidiary will ultimately take
Its place as a Canadian manufacturer, thereby assisting in
the development of the country.
Cement Production
Some interesting and rather important views on the
production of cement in Canada were expressed by Hon
Wm. Edwards, president of the Canada Cement Co. " a.t the
annual meeting last week. "Last year some people claimed
that there was a shortage of cement in Canada," he said
but we contend that Canada had a better supplv of cement
than any country in the world, and that anv temporary
shortage was not due to the cement manufacturers but to
the shortage of coal. Canada at the present time has an
annual cement producing capacity of at least 50 per cent.
more than Canada's annual consumption. Newspapers re-
port that in some quarters there is uncertainty about being
able to carry on work during the year 1921, on account of
anticipated difficulty in getting delivery of cement. Such
fears are without foundation, as Canadian cement manufac-
turers have more than ample capacity; in fact, your com-
pany alone can produce yearly considerably more cement
than Canada has ever consumed in any year, "and, we believe,
more than Canada will consume in any year for some
years to come. It may be possible that if large users
wait until they actually require their cement before order-
ing it, they may not be able to get delivery the moment
they w&nt it, but if they will place their orders a reason-
able length of time ahead, as they do for other com-
modities, they need have no fear about getting their cement
as and when required, provided, of course, that Canadian
transportation systems can handle it at the time they want it."
Textile Conditions
An interesting sidelight on the conditions in the textile
trade is contained in a remark made by H. B. Peabody, of
Peabody and Co., Walkerville, recently. "Within another
thirty days we expect to be running at full force," he said.
"At present we are employing about 35 men and about the
same number of girls on short time production of between
four and four and a half days a week. We expect to put on
another 75 girls at least. Experienced operators, of course,
will be given the preference. We will keep adding to this
number as rapidly as possible. When running under normal
conditions, we employ 125 men and between 450 and 500
girls. During the past few days orders have been coming
in very well. The orders are coining from all parts of the
country, including many points in Ontario. Conditions are
bettering and prospects are much brighter. With our stock
running low, we confidently expect that our plant will be in
full swing in another month's time."
Following a recent interview between representatives of
the textile industry in Quebec and the minister of labor of
the province, in connection with the employment of children
and women in textile factories, it was announced that the
minister though admitting that a request for a maximum
of 50 hours per week instead of 55 for women a'Ud
children in the industries was sufficient, had suggested
as a point of agreement fifty hours or even fifty-two
for the present. Hon. Mr. Galipeault stated that he
thought employers and employees could settle this question
quite easily, and that as soon as the hour limit had
been agreed upon the present regulations regarding women
and children labor in textile industry would be amended so
as to meet the demands made. At present 75 per cent, of
the labor in the textile industry is composed of women and
children.
Dominion Industrial Products
The Dominion Industrial Products Co., Ltd., is being
organized at Toronto, Ont., to act as the accredited repre-
sentative in Canada of thirty or more United States manu-
facturers of numerous industrial products, including rail-
way equipment, road contractors' equipment, and various
metal specialties. It is not expected that warehouses will
be opened before the end of the year, but there are immediate
prospects of slales offices being opened in the principal
Canadian cities. Those interested include W. P. Young,
formerly general purchasing agent of the Canadian Edison
Appliance Co., Ltd., Stratford, and J. M. Young, formerly
with the Russell Motor Car Co., Ltd., James W. Derby-
shire will be general sales manager.
A new canning factory has been erected by the United
Fruit Companies of Nova Scotia., at Aylesford, N.S., and is
now in operation. The capacity of the plant is from 600 to
SOO bushels per day, and forty hands are engaged in operat-
ing the machinery of the plant.
Canadian Car and Foundry Co. recently disposed of
its Rhodes Curry plant at Amherst, N.S. The plant was
not in any degree a vital part of the company's organization
and its disposal will enable the company to enter 1921 in
a stronger liquid position than otherwise would have been
February 18, 1921
THE MONETARY TIMES
45
The Imperial
Guarantee and Accident
Insursuice Company
of Canada
Head Office, 46 KING ST. WEST, TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $200,000.00
Authorized Capital - - - $1,000,00<XOO
Subscribed Capital - - - $1,000,000.00
Government Deposits $111,000.00
LO N n O M GUARANTEE AND
^-^ *^ •■-' ^-^ *^ ACCIDENT COY.. Limited
Head Office for Canada - Toronto
Employers' Uability. Elevator, Contract, Pers
Guar.intee, Internal Revenue, Sicknes
Teams and Automobile.
AND FIRE INSURANCE
IT PAYS TO INSURE YOUR AUTOMOBILE
WITH
The Canadian Surety Company
Maxin
Servi
Minin
Cost.
CANADIAN STRONG PROGRESSIVE
A 9»ie wi%u=9JM(i«:e c<&wj?«fl«rf
FIRE INSURANCE
AT TARIFF RATES
THE EMPLOYERS'
LIABILITY ASSURANCE CORPORATION
OF LONDON, ENG. LIMITED
ISSUES
Personal Accident Sickness
Employers' Liability Automobile
Workmen's Compensation Fidelity Guarantee
and Fire Insurance Policies
C. W. I. WOODLAND
General Manager for Canada and Newfoundland
Lewis Huilding.
MONTRKAL
JOHN JENKINS,
rire Manager
Temple Bldg.
TORONTO
Palatine Insurance Company
LIMITED
OF LONDON, ENGLAND
Capital Fully Paid • $1,000,000
Fire Premiums, 1919 3,957,650
Total Funds - . 6,826,795
Head Office : — Canatlian Branch
COMMERCIAL UNION BUILDING, MONTREAL
W. S. JopLlRG, Manager
Toronto Office— 60 KING STREET WEST
JoKBS & Proctor Bros,. Limitrd. Ascnts
pBiiiiniiiiMiiiiiiimiiiiiDMiiiiminiiDiiiiuiiiniiiiiniiiii^
I Automobile— 1 920"Season I
g Policies to cover ANY or ALL motoring risks |
I ATTRACTIVE AGENCY CONTRACTS |
■ I
m 1
I British Empire Fire Underwriters
I 82-88 King Street East, Toronto
B
BiiniiimiMniiinnMimiBMiMiiiiiiiiimiinmiiiiiii
A LIFE INSURANCE POLICY
ONTARIO EQUITABLE
TVyiCE THE SUM INSURED IN
EVENT OF DEATH BY ACCIDENT
LOW PREMIUM RATES
SPECIAL FEATURES
.M. P. LANGSTAFK, A. I. A,, F.A.S.. S. C. TWEED,
Assistant Manager & Actuary President & Managing Director
Head Office
WATERLOO, ONT.
THE MONETARY TIMES
Volume ()ti.
the case. The remaining plants of the company are capable
of caring- for the unusually large volume of orders now
booked.
The new industry recently located at Smith's Falls, Ont.,
the International Button Co., Ltd., has commenced opera-
tions. The product is an ivory button such as in every-
day use, and is manufactured from vegetable ivory, a nut
imported from South America. It is expected that 100
persons will be employed.
Negotiations are under way for the establishment of a
tire manufacturing company at Leamington, Ont. Under
the proposed terms of incorporation, the new company will
attempt to raise $200,000 of their capital in Leamington,
later increasing their stock to $1,000,000. Representatives
of the new company are seeking options on land in the muni-
cipality as a site for their plant, which will require between
200 and 300 acres. The plant will manufacture punctureless
inner automobile tubes and casings. The principal promoter
of the new firm was a former resident of Leamington, who
has been engaged in the tire manufacturing businesJ in
Akron.
A factory for the manufacture of the Dominion Grain
Cleaner and Grader will be established in Winnipeg this
year, according to an announcement by R. H. Smith, of
New York, while in the west last week. "The machine is
the only one of its kind to go on the Canadian market," said
Mr. Smith. "It will clean and grade gram in' one operation
and will save the farmer 100 per cent, on his total crop value."
The machine is so designed as to eliminate impurities
from the grain itself and can be used for cleaning seed
grain as well as the general crop.
NEW INCORPORATIONS
Total Capital for Week Ended February 15 is $17,098,100,
Compared with $9,375,900 Previous Week
AUTHORIZED capital of $17,098,100 is represented by
companies whose incorporation was reported to The
Monetary Times during the week ended February 15, compared
with $9,375,900 the previous week. A comparative summary
by provinces is as follows: —
Week ended Week ended
Feb. 8. Feb. 15.
Dominion $1,400,900 $10,294,000
Alberta 479,500
British Columbia 1,665,000 940,000
Manitoba 250,000
Ontario 3,820,000 . 3,580,000
Quebec 2,076,000 1,804,600
Saskatchewan . : 164,000
Total $9,375,900 $17,098,100
The following are the companies with Dominion
charter: —
Roger and Airo Rubber Consolidated, Ltd., Montreal,
$500,000; Drifting Sand Filter Co., Ltd., Toronto, $2,000,000;
the B. and W. Productions, Ltd., Montreal, $100,000; Do-
minion Finance Guaranty Corp., Ltd., Toronto, $1,750,000;
Liberty Tire and Rubber Co. of Canada, Montreal, $500,000;
Merchants Fur Co., Ltd., Montreal, $100,000; Commonwealth
Securities Corp., Ltd., Toronto, $750,000; L'Agence d'lm-
portations, Ltd., Montreal, $45,000; Buchan's, Ltd., Mont-
real, $25,000; Baldry, Yerburgh and Hutchinson (Canada),
Ltd., St. Catharines, $500,000; Reflnite Co. of Canada, Ltd.,
Ottawa, $24,000; Standard Bread Co., Ltd., Ottawa, $500,-
000; Mutual Oils Consolidated, Ltd., Winnipeg, $3,000,000.
Provincial Charter
The following is a list of companies incorporated under
provincial charter: —
Alberta. — Oscar Collieries, Ltd., Calgary, $300,000; Reed
and Brown, Ltd., Edmonton, $25,000; Brown-Rod Hardware
Co., Ltd., Donalda, $10,000; Three Hills Milling Co., Ltd.,
Three Hills, $100,000; Jasper Pharmacy, Ltd., Edmonton,
$20,000; Jeffrey's, Ltd.^ Calgary, $4,500; St. Paul Real Estate
Co., Ltd., St. Paul des Metis, $20,000.
British Columbia. — Rolfe Electric and Battery Co., Ltd.,
Victoria, $10,000; Great Northern Transfer Co., Ltd., Van-
couver, $10,000; Broadway Buildings, Ltd., Vancouver. $100,-
000; Canadian Tractor and Transmission Co., Ltd., Van-
couver, $300,000; Hellenic Canadian Club, Ltd., Victoria,
$10,000; Car-owners, Ltd., Vancouver, $10,000; Edward Lip-
sett, Ltd., Vancouver, $500,000.
Ontario. — Superior Engravers, Ltd., Hamilton. $40,000;
Domestic and Farm Appliances, Ltd., Toronto, $150,000; "S"
Kosher Delicatesen, Ltd., Ottawa, $15,000; George Street and
Sons, Ltd., Orillia, $40,000; Osigian Silk Corporation of Can-
ada, Ltd., Toronto, $200,000; Uniform and Equipment Co.,
Ltd., Toronto, $50,000; Regent Tailors Sales Corporation,
Ltd., Toronto, $100,000; W. W. Wilkinson, Ltd., Gait, $300,-
000; Ritz Amusements, Ltd., Ottawa, $10,000; Elgin Handles,
Ltd., St. Thomas, $60,000; Monarch Industries, Ltd.. Beams-
ville, $300,000; Diamond Sweets, Ltd., Toronto, $100,000;
Centralia Farmers' Co-operative Co., Ltd., Centralia, $15,000;
Anderson Miller Lumber Co., Ltd., Toronto, $50,000; Chron-
icle Publishing Co., of Peterborough, Ltd., Peterborough,
$25,000; Wright Dry Goods, Ltd., Gananoque, $40,000; Oil
Shares Brokerage, Ltd., Toronto, $100,000; Victory Automo-
bile Accessories, Ltd., Toronto, $25,000; Mcllroy Belting
Wor^s of Canada, Ltd., Kingsville, $50,000; Ellis-Mclntyre
Motors, Ltd., Hamilton, $150,000; Continental Coal Co., Ltd.,
Toronto, $40,000; Commerce and Customs Corporation, Ltd.,
Toronto, $40,000; Majestic Gold Mines, Ltd., Toronto, .?1,000,-
000; Standard Theatres, Ltd., Toronto, $250,000; Carrara
Marble Co., Ltd., Toronto, $40,000; Asbestos Pulp Co., Ltd.,
Belleville, .$200,000; Quebec Paint and Varnish Co., Ltd.,
Brantford, $40,000; Ponsford Construction Co., Ltd., St.
Thomas, $400,000.
Quebec. — A. P. Lymburner and Co., Ltd., Montreal, $45,-
000; Academy Apartment Co., Montreal, $500,000; Montreal
Loan and Financial Co., Ltd., Montreal, $49,900; Life Saver
Swimming Glove Co.. Ltd., Quebec, $10,000; Montreal and
St. Lawrence Ports Stevedore Co., Ltd., Montreal. $20,000;
B. J. Baittle, Ltd., Montreal. $20,000; Economic Products,
Ltd., Montreal, $395,000; I. P. Dery and Fils, Ltd., Quebec,
$145,000; La Compagnie d'.\utobus, Ltd., Riviere du Loup,
Que., $2,100; La Compagnie S. Gagnon, Incorporee, Quebec,
$49,000; Townsend Paints, Ltd., Montreal, $49,500; L'lndus-
trielle de St. Tite, Ltd., Saint Tite, $20,000; Bland Manufac-
turing Co., Ltd, Montreal, $500,000.
INSURANCE LICENSES AND AGENCY NOTES
The Merchants Casualty of Winnipeg, which has oper-
ated in the accident and health field for a number of years
throughout the Dominion and Newfoundland, has obtained a
Dominion license to write all forms of automobile policies.
Captain R. C. Sanborn, who has played a large part in the
promotion of the Zenith Companies, the parent company of
the Merchants, has been appointed general agent and ad-
juster for the automobile department in eastern Canada, in-
cluding Ontario, Quebec, the Maritimes and Newfoundland,
with headquarters in Montreal.
The Prudential Insur&nce Co. has made some changes
in the higher field staff positions, some of which affect the
Canadian organization. G. H. Chace, manager Canadian
division, is being transferred to the southern group of ordin-
ary agencies and C. G. Lanning becomes Canadian manager.
E. J. Maclver, supervisor, becomes supervisor of the group
department. It was Mr. Maclver who opened the Canadian
field for the company.
The Life Underwriters' Association of Toronto held their
January meeting on January 14, the attendance being the
best on record, numbering in excess of 200. Edward A.
Woods, of Pittsburgh, was the guest of the evening, and gave
an address on salesmanship and training for the life under-
writer. The ballot for a new president for 1921 resulted ini
Walter B. Peace (Manufacturers Life) being elected.
February 18, 1921
THE MONETARY TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE - $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has hved up to its mottj ' * Solid as theContinent." Insurance
in Force, Assets and Net Surplus all sho^v a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
I92I promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID .■^S THK CONTINENT "
HEAD OFFICE TORONTO
Important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE - WINNIPEG. MAN.
Assurances, New and Revived - - - 8
Premiums on same ....
Assurances in Horce - -
Total Premium Income
Policy Reserves
Admitted Assets
Average Policy - - ■ , - -
Collected in cash per $1,000 insurance in force
a,211,-l-47.00
4.3,890.00
3,458.939.00
109,586.03
211,497.00
296,430.62
2,237,50
31.75
For particulafs of a good agency apply to
ADAM REID, Managing Director - Winnipeg.
Fifty-one Years of Steady Progress
One of the must brief yet impressive histories of Canadian financial in-
stitutions IS contained in the annual record of The Mutual Life of Canada.
The current issue will be ready in a few da>s. A copy will be sent to you
on application. It contains Hfty-one successive summa?ies.sh wing in
the paralU'l columns the increa^e from year to year of the company's
various receipts, expenditures, etc. No other document could better
convey the idea of sohd. uniform achievement, and the momentumof the
advance is now greater than ever. The prospects are bright for a still
rapid expansion within the next few years The assets of the com
pany exceed $ J 0.000 000. and the assurances in fore
*..„. „«« ..«„ ^. : . c than ti
f iofi.OOO 000. Th.
over and ah.ive the a
the position of the company
of uncommon strength
a gross surplus of mi,., ...
ount necessary to guarantee all poli
1 dolla
:hed
; of the strain of recent year
The Mutual Life Assurance Co. of Canada
Waterloo Ontario
CO-OPERATIVE SERVICE
"po Policyholders between the Company and the ARents is the secret of our
success. livery representative is niven the utmost assistance, but he must
look after our clients' interests. During the last il years Tk« CsatiBtiilal life has
built an enviable reputation for prompt payment of claims.
Write for booklet. "Oar Betl AdTcrfiicrv." For Manager's positions in
Ontario, .npply with references, stating experience. etc., to S. S. WEAVER. Eiitero
SuperinleDdcnl, at Hciid OfficF.
THE CONTINENTAL LIFE INSURANCE CO.
Head Office
TORONTO. ONTARIO
ENDOWMENTS AT LIFE RATES
ISSUED ONLY HY
THE LONDON LIFE INSURANCE CO.
Head Office ... LONDON, CANADA
Profit Results in tbis Company 70°^ better (ban Estimates.
POLICIES "GOOD AS GOLD."
Again in 1920
-as in preceding years, tfie plain evidence of
RESULTS proves that the most popular Life Policies
in Canada are those of The Great-West Life.
Applications for the year exceed $60,700,000. Busi-
ness in force now exceeds $256,800,000, protecting
over 105.000 Policyholders.
This popularity rests upon a very sound foundation.
Investigate.
THE GREAT- WEST LIFE ASSURANCE COMPANY
DEP'r. 'i-'"
HEAD OFFICE - WINNIPEG
The Western Empire
Life Assurance Company
Head Ofiice : 701 Somerset Building, Winnipeg, Man.
SASKATOON
Offices
EDMONTON
VANCOUVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office for Canada, Humilton, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NORMAN S. JONES. Manager K. J. MAHONV. Ass't Manager
Barglary
A. E. Hab. Vice-Preaident Ho.mb Officb
J O. Mblin, Sec -Treas. 10th Floor, Electric Railway Cbamberi
Good Openings for Live Agents
48 THEMONETARY TIMES Volume 66
News of Municipal Finance
Sherbrooke Proposes to Enrich the Civic Exchequer by a Scheme of "High Financing" — Swift
Current in Difficulty — West Vancouver's Report Shows an Improved Condition— Growth of Tor-
onto's Assessment Has Been Rapid— St. Lambert Citizens Claim Bad Management of Affairs
'pHE city of Sherbrooke, Que., is considering the advisa- of $3,185,511. The total levy for 1920 was $110,989, of
■■- bility of indulging in what appears to be a piece of high which $75,357 was collected. Arrears of taxes and interest
'financing, and by so doing hopes to improve the civic ex- collected last year was $30,245.
chequer by a substantial sum. The plan of the finance com- The 1920 report shows liquid assets of $284,597, of
mittee is briefly this: The city has a series of bonds due in which amount $103,587 represents tax arrears. Total cur-
London in 1933, bearing 4% per cent., which amount to some- lent liabilities are shown at $18,985. The excess of total
what in excess of 100,000 pounds sterling. This actually assets over total liabilities is $360,186.
represents a value in our own money of, roughly, $440,000, gt. Lambert, Que.—Becoming alarmed over the manage-
whereas, at the time the loan was transacted, this would have ^ent and finances of their town, inhabitants have fomied a
amounted to some $490,000. It is this difference which the Citizens' Association -to prevent amendments to the charter
finance committee wishes to save, in addition to the differ- which the council is trying to force through, among which
ence between the present low price of British Consols and a^e given unlimited powers for spending without consulting
their face value at maturity. the proprietors and the ratifying of illegal acts of the
It is the committee's intention to borrow some $400,000 council. This bill was not brought before the council in
in the States, interest and principal payable at New York, public, but only in committee before it was sent to Quebec,
at a rate of not more than 6 to 6% per cent. The money The financialYondition of the town is seen from the following
received for the issue of bonds disposed of in New York comparison: —
would be used to purchase British Consols 5 per cent., which Increase
are now selling around eighty-fiv-B pounds. One hundred thou- 1913. 1919. %.
sand pounds of British Consols at to-day's prices would cost Population 4,000 4,852 21
the city approximately $375,000, while the 100,000 pounds Value of taxable pro-
sterling due by the city cost $500,000. perty $4,508,920.00 $6,761,769.00 50
Against this the interest on the loan in the United States Municipal taxes collected 37,872.79 79,014.00 108
would have to be considered. This would amount to about Interest-bearing debt... 469,374.13 1,338,123.95 186
6 per cent., against which would be offset the 5 per cent, on Interest paid 21,946.42 68,400.89 211
the British Consols, in addition to which we must consider -pj^g printed financial statement for 1919 shows $15,921
that the 5 per cent, is payable m sterhng and the 6 per cent. ^f "excess of expenditure over revenue." That means that
in dollars. There is also the possibility that exchange con- g^ Lambert did not pay its way. It, is stated that last year's
ditions will return to normal within the next ten years, so showing' was worse
that, while $400,000 United States money would give 456,000 Windsor, Ont.— The first annual report of the local hydro-
Canadian dollars to-day, it might then only cost $400,000. electric railway shows a net profit of $22,335. Total earnings
This depends on whether it is the intention of the finance ^f ^j^g company for the first vear amount to $296,373. Out of
committee to purchase the British Consols with "United ^^jg ^^,,^g 3,1 expenditures for upkeep, wages and repairs.
States funds" or with Canadian funds. There was also' set aside $49,000 for interest on bonds and
Toronto, Ont.— Since 1912 there has been a large increase $83,000 for a sinking fund. Assets of the system are esti-
in the total assessment of the city, according to the annual i"ated at $2,144,755, while liabilities are $1,849,000.
report of Assessment Commissioner Foniian. The following Moose Jaw, Sask.— The total net assessment- of the city
.figures illustrate: for the year 1921, as shown by a statement given out by
Year's inc. W. J. Moffat, city assessor, is $22,580,119, a net decrease of
! 1921. 1920. 1912. Percent. $396,091 from the statement which was issued by the assessor
Land $315,660,799 $294,675,927 $156,787,848 7.21 as on May 15 last. There has been a decrease of $715,225
Buildings and '"^ t^"^ i^*- ^^""^ assessment since May. The net land assess-
improve 253,665,093 236,563,880 146,294,561 7.23 ment as at December 31, 1920, was $14,159,200, as against
Total real $14,874,425 of May 15, 1920.
property... 569,325,892 531,239,807 303,082,409 14.44 The total gross assessment at the end of December, 1920,
Business 78,404,872 69,189,511 38,241,909 13.31 was $28,131,439; on May 15 last the total gross assessment
Income 55,620,587 41,024,838 13,823,105 35.57 was $27,802,825. The assessments on improvements, business
Total 703,351,351 641,454,156 355,147,423 9.69 tax and income tax have all been increased since last spring.
Exemptions .. 98,271,202 92,616,595 46,037,672 ... The exemptions have also increased, with the result that,
while thev were $4,826,615 in May last, thev are to-day
Among the many other interesting statements given m $5,551,320" gross. The total exemptions on iknd now are
the report, it is shown that the amount reahzed on tax sale j., ggg g^g ^^ against $'' 6'?1 640
lands sold since 1905 has been $2,032 334 while the arrears ^ g;^^f^' Current, Sask.-^Details relative to the financial
of taxe^s on the land was $655,954. thereby netting a profit j,^^;^;^^ ^^ ^^^^ municipality have been gleaned from the re-
of $1,376,379 to the city. pp^.^ ^^ q j Qo^jfi-ey, municipal expert, who recentlv made
- West Vancouver, B.C.— Over a period of three years .^ survey of the city's affairs, and has submitted his report
there has been considerable improvement in the finances of to the council. According to Mr. Godfrey, each resident of
the municipality. The bonded indebtedness of $780,200 has gwift Current should pay $461.48 to pay' off the per capita
not changed any since 1918, but the amount in the sinking ,]ebt. The total liability of the city and school districts
fund has increased from $39,188 to $74,830. There is still a jg $1,845,920, made up as follows: City capital liability, $1,
shortage of sinking fund of $33,000, but this compares with 224,603; school capital liability, $247,500; city current
$38,767 for 1919, and $35,840 for 1918. There was $9,585 liability, $331,276; school current liability, $42,540.
cash on hand and in the bank at the end of last year, as a liability of $14,023.84 to the provincial treasurer in
against, $516 at the end of 1919, and $936 at the end of 1918. respect of uncollected taxes for public revenues is omitted,
There are no unpaid bank loans, while two years ago such j^s it is contingent upon collection of the said taxes, and will
an account was shown at $27,433. take care of itself. To retire these liabilities, assuming the
The total assessed value of the municipality is $3,693,- accounts receivable to be available for this purpose, is found
716, while exemptions are $508,205, leaving a taxable value onlv $13 762.41.
February 18, 1921
THE MONETARY TIMES
49
C.P.R. BUILDING
TORONTO
nOllSSERVVbODv°G>MPANY
INVC«TMENT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
OSLER, HAMMOND & NANTON
WINNIPEG
Stock Brokers and Financial Agents
Insurance Mortgage Loans
Real Estate
NEW ISSUE
City of St. Catharines
6 ; COUPON BONDS
Maturities : 1922-1926
Principal and semi-annual interest (April 20
and October 20) payable in Toronto or St.
Catharines; denomination $500 and $1,000.
PRICE TO YIELD 6.40%
Harris, Forbes & Company
INCOEPORATED
C. P. R. Building 21 St. John Street
TORONTO MONTREAL
N. T. MacMillan Company
Limited
.FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur Bldg., WINNIPEG, Canada
Members of Winnipeg Real Estate Exchange. Winnipeg Stock Exchange
PROVINCE OF ONTARIO
6% BONDS
Due 1st February, 1941, and 1st Decem-
ber, 1935. Denominations $500 and $1,000.
Particulars on application
C. H. BURGESS & CO.
Government and Municipal Bonds
14 King Street East - Toronto
WINSLOW & COMPANY
Stock and Bond Brokers
GOVERNMENT AND
MUNICIPAL BONDS
INDUSTRIAL SECURITIES
300 Nanton Building, Winnipeg
Exceptional —
— both for safety of principal and surety of
return Is this
7% Canadian Industrial Bond
with a bonus of Common Stock payable in New
York funds.
Ask a* for full particulars
R. M. HEFFERNAN & CO., Limited
INVESTS! EST BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
50
THE MONETARY TIMES
Volume 66.
Government and Municipal Bond Market
Prices are Weakening Slightly— Ontarios Went Up to Par But Are Now Below that
Level— Transactions in Victories Have Become Fewer in Number — No New Develop-
ments in the Edmonton Tie-Up— Many Western Municipalities Are Offering Securities
THE government and municipal bond market has tended to
become draggy, wdth Victory bonds assuming the lead.
It was stated in bond circles this week that there are still
some Ontario, Saskatchewan and Winnipeg bonds to be had,
and that prices have softened a little. Last week Ontario
bonds went up to par, but it is understood that they are
available under that price now.
The bond market in the United States is in a similar
position. Bond houses report further softness in the market
for new issues. Most recent offerings are declared to be going
slowly because new issues have been too plentiful and glutted
the market. Because of the large amount of undigested
securities pending, offerings are expected to be held in abey-
ance until the market has had a chance +o absorb the major
portion of the floating supply of recent issues.
There has been a remarkably large amount of bonds
absorbed here since the beginning of the year, and it is sur-
prising that the market had not shown softness before now.
The coming- of the Toronto $5,000,000 issue just now is not
quite as welcome as it might be, and it is thought that the
city will not receive quite as good a price as if the issue had
been brought out a week ago. From the bond dealers'
standpoint, however, it is just as well that the issue was
delayed.
Transactions in Victory bonds have dwindled down con-
siderably, and in one or two cases the prices have weakened,
although the movement has been narrow. The trend of prices
in recent weeks is illustrated by the following figures: —
Control
1922 98
1927 97
1937 98
1923 98
1933 96y2
1924 97
1934 93
Edmonton's Bond Tie-up
Although officials of Edmonton, Alta., are watching pro-
ceedings at Poi-tland closely, owing to the city's bonds being
tied up there, no new developments are reported. So far,
there is nothing to show that a start towards getting a settle-
ment of the claims will be made before March 1. Reports
received show that the auditors' report on the assets of
Morris Bros., which company has defaulted, does not include
the Edmonton securities, that is, they are not put in the list
of assets. All that the auditors allowed on the securities is
the $150,000 profit which the company would make on the
resale of the bonds. This profit is set down as an asset.
Another point that occurs to the civic officials in con-
nection with the auditors' estimate that the company would
pay from fifty to ninety-six cents on the dollar. It is believed
that this wide spread is made owing to the uncertainty of
the fate of the Edmonton bonds. If the firm can succeed in
converting them into assets the creditors would draw the
higher rate given, the city being in a like position.
Morris Bros, had a turnover last year of $14,000,000, but
on this sum the gross profit \yas only $17,000, and this not
taking into consideration the $430,480 for operating expenses.
That the firm strongly believed in extensive advertising is
shown in the fact that last year it expended $84,000 in that
way. In the meantime, Edmonton is paying 7 per cent, in-
terest on the money boiTowed from its bankers to meet the
maturity in New York last January.
Last week.
This week.
High.
Low.
High.
Low.
99 Vs
98 Vs
99
98%
98%
98
98%
971/2
99%
991/4
99%
991/2
98%
98
99
98
99
981/4
9878
98
96%
951/2
96%
96
95%
951/8
95 ¥2
951,4
Coming Offerings
The following is a list of debentures offered
particulars of which have been given in this or
issues: —
Maturity.
30-instal.
10-years
Serials
Borrower. Amount. Rate %
^Vhitby, Ont $ 60,000 6I/2
Chilliwack, B.C 46,000 6
Toronto, Ont 5,037,000 6
Point Edward, Ont. . . . 24,000 7
Morris R.M., Man. . . . 50,000 6 20-instal.
Walkerville,. Ont 85,000 6 15-instal.
Dauphin S.D., Man. . 30,000 6 1/2 20-years
Transcona, Man. . . . 48,000 6 20-years
Pointe Claire, Que. .. . 130,000 6 Serials
Danville, Que 33,000 6 ' Various
Trail, B.C 37,000 7 20-years
Drumheller, Alta. . . . 28,000 7 20-instal.
for sale,
previous
Tenders
close.
Feb. 19
Feb. 21
Feb. 22
Feb. 23
Feb. 24
Feb. 24
Feb. 25
Feb. 28
Feb. 28
Mar. 7
Mar. 7
Mar. 26
Moose Jaw, Sask. — It is understood that the city is offer-
ing for sale $45,000 7 per cent, school bonds.
Whitby, Ont.— The town is calling for tenders up till
February 19, 1921, on $60,OQO 61/2 per cent. 30-instalment
debentures. Joseph White, treasurer.
Morris R.M., Man. — Tenders will be received up till Feb-
ruary 24, 1921, for $50,000 6 per cent. 20-instalment good
roads debentures. W. A. Stevenson, secretary-treasurer.
Walkerville, Ont. — Tenders will be received until Feb-
ruary 24, 1921, for the purchase of $85,000 6 per cent. 15-
stalment debentures. For particulars, see advertisement else-
where in this issue.
Stratford, Ont.— The city is offering direct to the local
public 6 per cent, bonds, maturing in 10, 15 and 30 years.
The funds obtained from the sales made will be used to con-
struct schools and other capital expenditures, while a sinking
fund is provided out of the tax rate to retire interest and
principal of the bonds when due.
Pointe Claire, Que.. — Tenders are being asked until Feb-
ruary 28, 1921, on $130,000 6 per cent, debentures, dated
November 1, 1920, and maturing in series until November 1,
1945. Tender must be accompanied by a certified cheque
equal to 1 per cent, of the issue. Securities are in denomina-
tions of $100 and multiples thereof.— L. J. Laurendeau, secre-
tary-treasurer.
Regina, Sask.— A block of $100,000 debentures will be
placed on the market in about a month or six weeks' time
to cover the cost of local improvements constructed last fall,
according to Commissioner Thornton. Mr. Thornton told
the council last week that he had received an inquiry from
a bond firm and put it up to the council to decide whether
to anticipate the passage of the necessary by-laws and call
for bids now or wait until a later date. The commissioner
stated that the bond house agent declared that present con-
ditions were more favorable now that they had been for
some time, but they were unable to forecast what the
situation would be in a month's time. He was of the
opinion that it would be more politic to wait, and with this
view the aldermen concurred.
Debenture Notes
Sandwich, Ont. — A number of by-laws have been passed
by the council, authorizing the raising of funds for municipal
improvements.
Winnipeg, Man. — The school board has decided to ask
the citizens to approve of the issue of $2,000,000 bonds, the
February 18, 1921
THE MONETARY TIMES
51
Flexibility in Service
There is a freedom and a flexi-
bility to our Victory Bond Service
Department that commends
itself to those who have had
experience with it.
You, too, will find this so if you
favour us with your orders to
buy or sell Victory Bonds.
Telephone enquiries especially
solicited.
Entrust us rvilh your order
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Ens.
wmmmwM^w^Aimmm
/ IHVI
-^
^\
mw^M^w^mmmmm
^
IHVISTWEHT- SERVIC: ^
In Eight
Financial Centres
We maintain thoroughly equipped offices for
the purchase, sale and exchange of Govern-
ment, Municipal and Corporation Bonds.
These offices are at Montreal, Toronto. Hali-
fax, St. .lohn, Winnipeg, Vancouver, New
York, and London England.
We solicit inquiries from investors who have
bonds and stocks" to sell, or from those who
wish to buy or exchange. Orders accurately
and efficiently executed.
If you wish to read a stimulating review o(
current business conditions, write and ask us
tu mail you this month's Investment Items.
Royal Securities
^ 'corporation
L. I M I T E D
MONTREAL
TORONTO HALIF.4X ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. Enj.
I
W. L. McKINNO.N
DEAN H. PKTTRS
We Buy and Sell
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Covernmeni and Municipal Bonds
McKINNON BUILDING ■:• TORONTO
Telephone Adelaide 3870
1
VICTORY BONDS
1
1
1
All Maturities
Bought
Sold
Quoted
Rapid, Accurate
Service Guaranteed
1
1
1
PHONE MAIN 209}
W. A. MACKENZIE & CO.
Covcrnmenf and Municipal Bonds
Corporation Securilic'.
42 KING STREET WEST
TORONTO - CANADA
THE MONETARY TIMES
Volume 66.
amount estimated as required for providing additional school
accommodation during 1921 and 1922.
Edmonton, Alta. — Financial firms across the border are
still seeking the city's bonds, despite a disposition in local
quarters in future to deal with Canadian houses. An offer
to take up .$1,.500,000 of ten-year bonds, bearing five and a
half per cent, interest, has been received from a financial
house in Philadelphia. As the price is considered lov^r in
comparison with what the city secured some months ago,
it is unlikely that it will be accepted. The securities which
the Philadelphia firm is after are the unsold portion of the
consolidated tax arrear debentures sold to the National
Bond Corporation in Vancouver last year.
Lethbridge, Alta. — H. T. Lloyd, engineer, representing
the Chattuck Construction Co., of Los Angeles, met with
the board of trustees of the Lethbridge Northern Irrigation
District last week to discuss submitting a proposal to the
trustees. Mr. Lloyd desired to know if the trustees would
consider a bond-contract proposal. The engineer was given
all the infoniiation in the hands of the district, covering the
district's affairs, and was told that if the company's proposal
was sufficiently reasonable it would be considered. No
definite promise was given to Mr. Lloyd, and it is under-
stood Mr. Lloyd telegraphed his seniors to the effect that
the trustees would receive a proposal.
Bond Sales
West Kildonan, Man. — J. A. Thompson and Co. have pur-
chased $.38,000 6 per cent. 30-year bonds of the municipality
at a price of 85.50, which is considerably above a 7 per cent,
basis.
FVedericton, N.B. — The Royal Securities Corporation
has been awarded $100,000 5 per cent, serial bonds, matur-
ing from 1924 to 1934, at a price of 90.676, which is on
about a 6.45 per cent, basis.
Decker C.S.D., Man.— Debentures for $40,000 at 7 per
cent, of the district haVe been sold to Harris, Read and
Co., of Regina, at 97. These were advertised last month, and
the highest bid at that time was 92.50.
Rockwood R.M., Man. — J. A. Thompson and Co., of Win-
nipeg, have been awarded $52,853 6 per cent. 30-instalment
debentures of the municipality at 95.772, which is on about
a 6.40 per cent, basis. Tenders received were: — J. A. Thomp-
son and Co., 95.772; Strang and Snowden, 95.17; W. L. Mc-
Kinnon and Co., 94.813; Harris, Read and Co. (Regina), 94.32;
Bond and Debenture Corporation, 94.07; Wood, Gundy and
Co., 93.89; Dominion Loan and Securities Co., 93; A. E.
Ames and Co., 92.40; R. C. Matthews and Co., 89.
Portage la Prairie, Man. — A. E. Ames and Co. have pur-
chased $54,000 6 per cent. 20-year debentures of the
municipality. The following tenders were received: —
A. E. Ames and Co 93.69
T. S. G. Pepler and Co 93.587
Strang and Snowden 92.28
Harris, Read and Co 89.80
R. C. Matthews and Co 88.10
Wood, Gundy and Co 87.46
Also two bids received too late to be considered by the
city council. Canadian Debenture Corp., Toronto, 94.28;
Bond and Debenture Corp., Winnipeg, 93.85.
Oshawa. Ont. — The city has disposed of to Wood, Gundy
and Co. $132,475 6 per cent., 30-year sewer debentures and
$48,864 6 per cent., 20-year sidewalk debentures. The price
paid was 96.65, and as the securities mature in annual instal-
ments the municipality paid about 6.35 per cent, for its
money. The following tenders were received : —
Wood, Gundy and Co 96.65
R. C. Matthews and Co 96.121
C. H. Burgess and Co 95.69
. . National City Co., Ltd 95.39
A. E. Ames and Co 94.85
United Financial Corp. Ltd 94.82
Brent, Noxon and Co 94.646
Dyment, Anderson and Co 94.432
A. Jarvis and Co 94.293
Harris, Forbes and Co., Inc 94.21
C. R. Clapp and Co 93.891
Windsor, Ont — The city has awarded an additional $225,-
000 block of bonds to the Dominion Securities Corp., who
recently secured an issue of about $450,000. The bonds are
twenty-year serials and bear 6 per cent. They are being of-
fered to the public at prices to yield from 6.17 to 6.50 per
cent., accoi'ding to maturity.
NORTH WEST FIRE INSURANCE CO.
On another page of this issue are given details of the
thirty-seventh annual report of the North West Fire In-
surance Co., Winnipeg. The figures shown, as compared
with the previous year, reflect increased operations and
a better position. The premium income shows an in-
crease of $26,814 over 1919. Loss ratio is 42.93 per cent,
and the reinsurance reserve is the full government standard
and not taken in at 80 per cent., as allowed by the Insurance
Department.
Total assets are $448,134, and the surplus over all
liabilities and paid-up capital is $178,494. The figures in the
previous year were $387,379 and $168,653 respectively.
The North West Fire is well-known and highly respected
in the west. Geo. R. Crowe is present, T. L. Morrisey, gen-
eral manager, and Thos. Bruce, deputy manager.
REAL ESTATE LOAN CO.
An increase in income from $84,151 to $90,037, an ad-
vance from $1,095,594 to $1,131,102 in mortgage loans, and
much larger holdings of government, provincial and muni-
cipal bonds, are facts illustrated in the annual report of the
Real Estate Loan Co., Toronto, which speak well for the
operations of that institution in 1920. The securities now
held total $193,116, as against $150,816 in 1919. Cost of
management was slightly higher, but interest on money bor-
rowed was about $5,000 less, so that after paying the regular
dividends and making the usual provisions, the balance car-
ried forward was increased correspondingly.
The balance sheet shows a reduction in sterling de-
bentures from $587,050 to $558,206, while currency deben-
tures are about stationary at $50,900. Assets are now showni
at $1,401,673, compared with $1,419,423 a year ago, but the
position of the company has improved in this regard. For
instance, last year an item appeared showing real estate
foreclosed at $105,213. This year there is shown real estate
held for sale of $44,678. The capital and reserve are un-
changed at $500,000 and $260,000, respectively.
CANADA NATIONAL FIRE INSURANCE CO.
A loss ratio of 32.82 per cent, in 1920, compared with
33.45 per cent, in 1919, is reported by the Canada National
Fire Insurance Co., Winnipeg. The gross amount of in-
surance in force at the end of the year was $36,891,896, an
increase of $5,137,562. Gross premium income was $328,171,
an increase of $40,974. The amount of insurance written in
1920 was $26,364,244, the largest in its history.
The total revenue for the year was $370,290, and after
paying losses and expenses there remained a balance of
$169,420. Out of this $13,008 was transferred to govern-
ment reserve and $110,503 paid out in dividends at 6 per
cent.; the balance of $45,828 was carried to the net surplus
to shareholders, which now amounts to $343,414. There is
also a contingent reserve fund of $100,000, making a total
reserve to shareholders of $443,414.
February 18, 1!:»21
THE MONETARY TIMES
$25,000
CITY OF HALIFAX, N.S.
BONDS
Dcno
Due Inly hi. 1953
Principal and semi-annual interest pay
able at Toronto, Montreal, Halifax
inalions, $1,000
Price :
92.85 and accrued interest
YIELDING 6%
Eastern Securities CompaDy, Limited
ST. JOHN, N.B.
HALIFAX, N.S.
Western Municipal & School
Debentures
TO YIELD ' 2
6%
71%
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
INVITED
UNION TRUST BUILDING
WINNIPEG
Our Service to Investors
FIRST INVESTMENTS
TNDIVIDL'ALS contemplating a first invest-
-*- ment, yet undecided as to the best course
to pursue, should obtain our advice in safeguard-
ing the placing of their funds.
Such advice is given by financial men whose
matured judgment can be relied upon. It offers
a sure means of avoiding unmse investments.
It is a form of protection that should he secured
especially by those unfamiliar with financial
affairs.
There are no formalities to be complied with.
It is merely a matter of writing, marking such
letters " Service to Investors." The Service
Department will attend promptly to requests
with consideration and courtesy. Address : —
.\I. S. WHEELWRIGHT & CO.
,-,.,, c ■.- Limited
Canadian Inve^itment securities
TRANSPORTATION BLDG.,
132St.PeterSt. MONTREAL
QUEBEC
d.^ Sparks St.
OTTAWA
Moose Jaw, Saskatchewan
STOCKS AND BONDS
INSURANCE
FARM LANDS AND PROPERTY MANAGERS
KERN AGENCIES
LIMITED
Pbivatb Wires to WIN.MPEG. CHICAGO. TORONTO.
MONTREAL AND NEW YORK
ATLAS
Assurance Company Limited
Foundeil in the Reign of George III
.'Subscribed Capital $11,000,000
Capital Paid I'p 1 ,320,000
.\ddilional Funds 24,720,180
The company enjoys the highest reputation for prompt
and liberal settlement of claims and will be glad to receive
.ipplications for Agencies from gentlemen in a position
to introduce business
Head Office for Canada — 260 St. James St., fVlontreal
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. W. MAHAN
President
J. A. WBSTMAN
Managing Director
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
T46 Hastings Street - VANCOUVER, B.C.
C. H. MACAULAY J. P. NICOLLS. Notary Fublic.
ACCOUNT BOOKS
Loose Leaf Ledoers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
54
THE MONETARY TIMES
Volume 66.
Corporation Securities Market
stocks Hold Up Well in Spite of Many Adverse, Influences — Tractions Have Come Back — Windsor Hotel Op-
tion Not Exercised — Canada ForgingsjPasses Common Dividend— Smoot Service Corporation Offering Stock
NOTWITHSTANDING the many adverse influences during
the past week the stock markets held up well. The
losses sustained, particularly by those issues which were
directly afl'ected, were reasonable, and the way the whole
market discounted the events was encouraging. The financial ■
statements of our industrial companies which have made
their appearance, with one or two exceptions, are not of such
a nature as to inspire jubilation, but matters could be a
great deal v/orse. The fact that the majority of the con-
cerns substantial surpluses to tide them over the "lean"
period and to pay their dividends, is comforting, to say the
least.
The deficit on operatibns reported by the Woods Manu-
facturing Co. had its eff'ect, while the publication of the state-
ment of the Canada Cement Co. resulted in a big drop in
Cement common. Canada Steamships common continues to
be reactionary, and will likely remain so until something
really definite regarding the company's position is announced.
When the British Empire Steel Corporation plans were first
announced the proposed guarantee of the Steamships divi-
dends led many people to buy the shares, but now that there
is no prospect of the deal going through, although not of-
ficially admitted, there is not the same desire to hold, as the
removal of the guarantee leaves the company on its own re-
sources and it is generally considered such a position is not
entirely satisfactory, with ocean freight rates at their pre-
sent level.
Pulp and ' paper stocks were practically neglected and
moved very slightly in either direction. The position of most
of the Canadian paper corporations is good at present with
seemingly pleasant prospects ahead, but the public fancy
appears to have turned from this section of the market, for
the time at least.
Tractions a Bright Spot
One bright spot in the market was the traction group.
The revival of these securities has been the subject of con-
siderable comment during the past few months, and the sud-
den upward movement following the publication of the Win-
nipeg Electric Railway report did not occasion a great deal
of suiTJrise. although it was considered that the advance
in Winnipeg Electric was a belated reflection of the improve-
ment in the condition of that company.
On the whole the Canadian stock markets are all, if not
more, of that which can be expected of them. The public
is participating- in speculating activities to a much larger
extent than previously, and while there is a sensitiveness
whch causes constant reactions there is a much better feel-
ing than was at first anticipated.
Trading figures for the week ended February 16, show
that the turnover of listed stocks was 55,855 shares in Mont-
real, as compared with 30,157 in the previous week, while
the turnover of listed shares in Toronto' was 26,229, as
against 12,939. Bond trading in Montreal was lower, being
$1,297,650, compared with $1,563,800 previously, while in
Toronto there was a falling off from $2,269,150 to $1,375,500.
The option in favor of the Crown Trust Co. on the
shares of the Windsor Hotel Co. will not be exercised. The
option on the hotel which was signed by the directors last
month and its acceptance recommended to the shareholders,
was for $175 a share.
The Montreal Stock Exchange has been notified by At-
lantic Sugar Refineries, Ltd., of an issue of $3,000,000 6 per
cent. 10-year second mortgage bonds. It is stated that these
bonds will not be listed, no public issue being intended. This
is the financing arranged by the company with its creditors
in New York at the time of the big break last year when
the company found itself heavily committed in the market
for raw sugars.
Cosgrave Brewery Stock
A number of Montreal brokers are engaged in selling
a- $1,000,000 stock issue for the Cosgrave Brewery Co., of
Toronto. The sale price is $10 a share, and it is stated that
the company will pay' a bonus this year. The company is in
a very favorable position just now, with orders on hand of
sufficient volume to take up the entire output of this com-
pany for the next five years. Present production is entirely
for export.
Canada Forgings, Ltd., has declared the regular quar-
terly dividend of preferred stock, but no action has been
taken on common. This was not surpinsing in view of the
reduction in common dividend three months ago, when one
instead of three per cent., was declared. The company, in
common with all others interested in the manufacturing end
of the iron and steel trade, has been affected by the diminish-
ing and uncertain business since the armistice. During the
war the company was very active in shell manufacturing
and the profits were large. In the low capitalization of less
than a million dollars of common the company was able to
distribute 12 per cent, plus 3 per cent, bonus for a couple
of years.
Shares in the Smoot Service Corporation, Ltd., Toronto,
are now being offered for sale. The company has a Do-
minion charter; authorized capital stock is divided into 2,000
IM per cent, cumulative preference shares of $100 each,
and 6,000 ordinai-y shares of no nominal or par value. The
preference shares are non-participating, but are entitled to
repayment of capital in priority to the ordinary shares, and
preference shareholders are entitled to vote and attend all
meetings. The company has been formed for the purpose
of carrying on the business of buying, selling and otherwise
dealing in stocks, bonds and investments generally. The
directorate consists of: Joseph M. Smoot, Buffalo, presi-
dent; F. Berry Rockwell, Buffalo, 1st. vice-president; Julius
Berger, Toronto, Manager; Brig.-Gen. H. C. Bickford, Tor-
onto, treasurer; Everette H. Hunt, Buffalo, secretary and
assistant treasurer; James M. Slaughter, Buffalo, auditor.
UNLISTED SECURITIES
Quotations f u
& Co., Toronto
.^bitibiGen.Mtge.l
Alta. P^c. Grai
.■sC4Ul
— com.
. . . pref .
Ames-Holden Felt...7's.
.\shdo\vn Hardware -S's.
Brandr'm-H'ndes'n.com
British Amer. Assurance
Burns, p. 1st MtRe. 6's..
Can. Machinery — pref.
6's.
Canada Mortgage.
Can. Oil com.
Can. Westinghouse
Can. Woollens pref.
Cockshutt Plow com.
" .7% pref.
CoU'ngwoodShipb'dg.B's
Crown Life Insurance
B.d
Ask
89,50
i35
76.50
86
88
82
87
54
60
8
12
91
99
50
60
80
65
72
60
68
102
110
60
73
9
58
64
89
70
90
Qavies William B's
Dom. Foun. & Steel.com.
Pom. lron&SteelS'sl939
Oom. Power pfd.
DunlopTire pref.
Eastern Car 6's
Eastern Theatres., com.
Goodyear Tire., pref.. .
GVd'n.Irons'e&Fares6's
Gunns. Limited pref.
Harris Abattoir 6's
Home Bank
Imperial Oil
King Edward Hotel. ..7's.
Lake Superior Paper. 6's.
Loew's, Ottawa. . . .com.
Toronto — pref.
Manufacturers Life
Massey-Harris
Mattagama Pulp... pref.
Mercantile Trust '^^....'
Merchants Fire
Mexican Nor. Power.. S's
Morrow Screw 6's
Murray-Kay pfd.
National Life
Neilson.Wm 6's.
North Star Oil com.
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Peoples Loan & Savings.
Riordon . com. (new stk.)
..pfd.
R. Simpson... . . . ■ . .pfd.
Bid
Ask
170
200
98
65
74
25
90
100
32
9
12.50
84
88
61
68
ISO
84
91 .50
4. SO
5
73
81.50
93
96. SO
70
24
28
78
77
83
81
Southern Can. Pow.com.
..6's.
Sterling Bank
Sterling Coal com.
Toronto Paper 6's.
Toronto Power. S's (1924)
Trust &Guar...
United Ci^ar Storescom.
.pref.
Western Assurance
Western Can Pow. 5's..
Western Grocers. . . .pfd.
Whalen Pulp com
February 18, 1921
THE MONETARY TIMES
55
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Years
to yield
7 10 7%%
W f specially Recommend these Bonds as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto Bids. Royal Bank Chambers
EDMONTON CALGARY
The Bond House of British Columbia
WE ARE ;n the market for
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
AGENCY WANTED
BRYCE & COMPANY LIMITED
MANUFACTURERS' AGENTS
WINNIPEG, MAN.
Calling on the Dry Goods and Men's Furnishing Trade
of Western Canada from Port Arthur to Victoria, having
been agents for the Williams. Greene & Rome Co.. Ltd..
of Kitchener, Ontario, for over thirty years and discon-
tinuing this Agency on account of that business being
sold to Cluett, Peabody & Co., Limited.
DESIRE TO SECURE
a good Agency to replace same. Agencies to
the Wholesale Dry Goods trade are of interest.
RESIDENT SALESMEN IN
WINNIPEG - REGINA - CALGARY - VANCOUVER
8 Sels of Samples required.
Present Agents for
Penmans Limited. Paris, Ont. (The retail trade only.)
Watson Manufacturing Co.. Limited, Brantford, Ont.
The Central Agency Limited. Montreal, Quebec.
H interested, and for full particulars, write
BRYCE & COMPANY LIMITED
Box 238 - WINNIPEG, MAN.
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches— SASKATOON AND CALGARY.
Canadian Managers
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
LOUGHEED & TAYLOR, Limited
IWESTMEXT SECiRITIES
210 Eighth Avenue West
CALGARY
ALBERTA
P. M. LIDDELL & COMPANY
Investment Banl(ers. Fiscal Agents
Insurance Brokers
826-7-8 ROGERS BUILDING, VANCOUVER, B.C.
W
E have 450 good businesses for sale in the central
portion of Alberta. Everything from a General
Store to a small Ci,nfectionery
t you v^ant a business in Alberta you want us.
WHYTE & CO., LIMITED
Broke
stages
Edmonton. Alberta
Vancouver District Property
Expert Estate Agents and Managers
Property Bought and Sold, Valued. Rented and
Reported on. Correspondence invited.
WAGHORN GWYNN Co., Ltd. v.-coov..
X
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
M«NTKEAI/— Week Ciidcd Fell. IBtli.
(Figures supplied by Burnett & Co.)
Sales Open High Low Close
Amcs-Holdcn pfd.
Atlantic Sugar
Bell Telephone
Brazilian T.L. & Power
B.C. Pish
Brompton Pulp & P..-
Canada Cement
■■ ...pfd.
Can. Con
Canadian Cottons
'■ ...pfd,
CanadianCar
•■ ....pfd.
Can, Loco pfd,
Canadian Gen. Elec...
Can. Iron Foundry
..pfd
"Can. Steamship
• •■ pfd
" •■ deb
•• '■ .... Vot.Trustl
Con. Mining & Smel . . ■
Det Rys
Dom. Canners
Dom, Co.ll pfd.
Dominion Bridge
Dom. Iron pfd.
Dominion Glass
■ ..pfd.
Dom. Steel Corp
..pfd.
DominionTe.xtile
•• ..pfd.
Howard Smith
. pfd.
Illinois Traction
•■ • ...pfd.
Kaministiqua
Lake of the Woods..
•' ..pfd.
Laurentide
LyailCons
Macdonald Co
Mont. Cottons
Montreal Power. . . . ■ .
Tram
•■ ..Deb.
Telegraph...
National Breweries —
Ogilvie Flour Mills
" pfd
Ottawa
Penmans
Price Bros
Prov. Paper
Quebec Ry. L. H.&P.
RiordanPulpS P
St. Lawrence Fl. Mills
St. Maurice
Sherwin Williams
39*
41*
63*
fi9t
70^
71
««
B8
^0
20i
9.S4
98
:m
395
78*
78i
in
91
5
204
270
71j
H.i
92
74
155
iO
984
1854
90
13(1
87*
155
25
■M2
834
714
83*
■m
135
27500
66
33
112
2511
53i
5
212
45
101
140
S8i
113
102
5
248
3
95
79U0
26
175
144
30
70
463
75J I
pfd
Shawinigan W.&P...
Spanish River
■• pfd
Steel Co. of Ca'nada...
pfd
Toronto Ry
Tooke Bros
Tuckett
Twin City
WabassoCot'n
Wayagamack P. & P.
Winnipeg Ry
■tanks
Commerce
Hochelaga
Merchants
Molsons
Montreal
Nationale
Xova Scotia
Royal
Standard
Toronto
Union
Bonds
Bell Telephone Co
Can. Car
Can. Cement
Can. Rubber
Cedars Rapids Mf'g...
City Mont. Dec. 6's, 1922
•■ .May 6's. 1923
•■ Sept.6-s. 1923
Dom. Can.W.Loan.l92S
1931
1937
Victory Bonds. 1924
1934,
1922.
1927.
1937.
1923.
■■ 193p.
3(100
4000
1300
2400
500
1000
21306
9110
7210
48666
33031
165351
66405
47320
242,532
130380
91 i
924 I 92*
46i 46j
97i
nOtiTRKAM.— Continued-
Bonds
Dom. Cottons
Dom. Coal
Dom. Iron
Dom. Steel
Dom. Textile
Lake of Woods
Lyall
Mont. Power
National Breweries .
Ogilvie Flour
Penmans
Quebec Ry.L.H.&P..
Scotia
Sherwin-Williams
Steel Co. of Canada.,
Wabasso Cotton
Wayagamack P. & P. ,
Winnipeg Elec
Sales Open High Low Close
99i j 99 i
TOROXTO— Week Ended Feb. 16tli.
Sales Open High Low Close
Atlantic Sugar
Ames-Holden pfd.|
Abitibi
Barcelona 1
Bell Telepho
Br
:ili:
F. N.
jctit
Burt.
B.C. Fish
Can. Bread pfd.
Can. Car &F pfd.
Canada Cement
•• ...pfd.
Can
.pfd
Canadian Pacific R
Can. Gen. Elec. ...
...pfd.
Canada Steamship
pfd
Coniagas
Con. Gas
Dome
Dom. Tel
Duluth ...
Dom. Iron
Loco. . . .
•■ pfd.
Mackay Companies
■• ...pfd.
Maple Leaf
■■ pfd.
Monarch pfd.
N.S.Car
pfd.
N. S. Steel
Nipissing
Penmans
Porto Rico
•■ pfd.
Prov Paper
Quebec R.L.H. & P
Riordon
Russell pfd.
Salesbook pfd.
Sawyer-.Massey
•• ....pfd.
Sh. Wheat
Smelters
Spanish River
..pfd.
Stan.Chem pfd.
Steel Corp
Steel Company
....pfd.
Toronto Ry
Tucketls pfd.
Twin City
Winnipeg Elec
Banks
Commerce
Dominion
Hamilton
Imperial
Merchants
Montreal ,:
Nova Scotia
Royal ■
Standard
194
nto..
Union
Loan and Trust
Col. Inv
Can. Land
Can. Perm
Lon.S Can
Toronto Gen. Trusts..
Union Trust
Bonds
2510 694
326 49
209 453
873 43
1000
9000
19000
123
1564
TOttONTO— Continued
Wai- Loans
Dom. Can.W.Loan. 1925
1931
1937
Victory Loan 1922
1923
1927
1937
1933
1934
1924
Sales
Open
High
Low
3000 94j
94*
941
94?
4500
94 i
94 i
37400
97J
971
96J
73850
99
99
98i
97900
98*
99
98
74500
98g
98*
974 ,
507200
99S
99}
99
146200
983
98i
981
356850
954
954
55650
96g
96?
96
WlKMIPEft— Week ended Feb. I'jtli.
Victory Loan 1922..
• 1923..
1934..
1927..
1937..
1933..
26810
10700
9950
4200
40900
29550
1934 1 5120C
Sales Open
War Loan 1931
■• 1937
" 1925
Gt. West Perm. Loan
Home Investment- . .
Northern .Mtg
Western Grocers - - .
1200
High' Low
!«EW lOKK-Week ended
Feb.
IJtb.
Stocks
Sales
Open
High
Low
Close
Canadian Pacific
4100
1151
117i
list
117
40
Nova Scotia S. &Coal.
Granby Consolidated..
Bonds
Dom. of Can. S% 1921
54% 1921
5% 1926
5*% 1929
5% 1931
New York Curb-
Canada Copper.
1500
400
2000
66000
5000
65000
10000
34
22}
36
23i
1
92
90g
34
22}
90}
88
38
23j
994
994
914
914
9Ui
LO!« l>OM. Kns.— Week ended Jan. aiWh.
UoT't. A Nun,
Alberta 4% debs
Canada..34%1930 50..
•■ .... 4% 1940-60
'• .... 4J% 1920-25
B.C. 44%
Calgary 4i >. deb...
5% deb...
Edmonton S% bds. 23-53
Nfld. 3.*% bd:
•■ 4% 1936
Manitoba 4% deb. 1949
4% 1928
.Montreal 447o Reg.. . ,
47oReg...
Ontario 4% Reg
Quebec 4%. 1888 ... ,
■ 44% Reg....
Regma 5% deb
Toronto 4*% 1918....
Victoria 3*% 1921-6.
34% 1923...
Sales Open High Low Close
4%
54% cons....
Vancouver 44%
Winnipeg 44% 1940-60
4% cons. 1940
Railways '
Can. Nor. 4% deb. 1939
•• " Ont.34%db.'38J
" Pac.4%deb.
Can. Pac
■■ 4% deb.
■• 4% pfd.
G.T.P. Br. 4% bd 1939.1
G.T.P.3%bds
G.T. P. 4%I9S5 1
Gr. Trunk 4% guar.
Gr. TrunkS% 1st. pfd..
Gr. Trunk5%2nd pfd..
Gr. Trunk 4% 3rd pfd..
Gr. Trunk 4% cons. .. .
Gr. Tr. West. 4% bds..
Ont. & Quebec 5% deb.
P. Gt. East. 4^% deb. '42
Ind.. Fin., Ftc.
Can. Cement 6% bds...
Can. West Lumber 5%
Can. Cottons 5% bds..
Kaministiquia P.S% bs.
Shawinigan Water
Can. Bk. of Commerce
Bank Montreal
6.5}
87}
65?
8'*
64
fi?*
,S5',
8,5}
85
65*
654
64*
7''*
724
71*
61*
63i
61*
454
47}
45i
35
37j
35
l.SA
15}
154
62}
64
62}
651
65}
85}
761
76J
76
83J
834
83i
104}
104}
104}
102*
1024
102*
60*
804
60*
85
85
85
96
102 J
96
\K
125
125
434
43*
43*
46}
46}
464
February 18, 1921
THE MONETARY TIMES
57
"Forty-Sixth Annual Statement"
The
Standard Bank
of Canada
lu'B 10 iiroscnt llic lullowiiii; Stutemciil ol tlie business of the Biiuk for tlie yi-ii
C. PROFIT AND LOSS ACCOUNT
KaUiiioe' forward. January 31st, 1920 - ■■ - , .
I'lollts for the year eiuliiiB .liinuary 31st, 1921, after deductiiiR expenses. Interest accrued on depo
matured bills. Provincial taxes, and maklne provision for bad and doubtful debts
Heccived from I'remlum on New Stock issued
ending 31st January, 1921 :
Dr.
Iiiiiiiciiil .NO. IIS. paid May 1st. 1920. at the rale of 14' i \>er annum
1111 i. I, rill .Nil. 119. paid Ane. 2nd, 1920, at the rale of U'i per annum
liiiiil.ij.l Ni. 120. paid Nov. 1st. 1920. at the rate of ll't per annum
Unldiii.l .\... 121. payable Feb. Isl, 1921. at the rate of H'c per annun
\V;ii Ta\ on Note Circulation
Kcscrved for Dominion Income Tax
Contribution to Oftlcers' Pension Fuii.l
Written olT Bank Premises Account
Transferred to Heserve Fund
Balance carried forward
122.500.00
122.500.00
122.500.00
125,220.25
35,043.75
40,000.00
25,000.00
100.000.00
300.000.00
378,643.94
GENERAL STATEMENT, Slst January, 1921
LIABILITIES
Notes of the Bank In circulation „
Deposits bearing Interest (Irtcludlng Interest to dntci
Deiioslts not bearing Interest _
Dividend No. 121. iiayable Ist February, 1921
Former Dividends unclaimed
Due to Dominion (iovernmcnt - - -
Balances due to oilier Banks In Canada
Balances due to llank.s and Banking Correspondents elsewhere tban Id Canada-,....
Acceptances under Letters of Credit
I.i.ilillltlcs not Included In the foregoing ..,
Capllal paid up -_ -.
Itcscrvc Fund - -...; -.._
Hal.uiic "t Profit and Loss Account carried forward
1.710.14
1,220.25
566.50
1.000.00
1,754.18
),843.35
J.987.06
!,253.08
i,001.20
),000.00
J.543.94
Current coin held by tlic Bank
Dominion Notes held
Deposit In the Central Gold Reserves
Notes of other Banks _
Balances due liy thanks aiul Banking Correspondents elsewbere tban In Canada
Dominion and Provincial Covernmenl Securities not exceeding market value
Canadian Municipal Securities and British, foreign and colonial public securities other than Canadian
Hallway and iilher Bonds. Debcnlnres and Stocks, not exceeding market value
Call and Short (not exceeding thirty days) Loans In Caiuida on bonds, debentures and stocks
Other Current Loans aiul Discounts in Canada (leas rebate of interest)
Liabilities of Customers under Letters of Credit as per contra _
Overdue Debts, estimated loss provided for .-. .
Bank Premises, at not more than cost, less amounts written olT
Deposit with the Minister for the purpose of the Circulation Fund
Other Assets not Included In the foi-egoing ..
. $ 1,770.638.06
. 10.982.189.00
. 2.400,000.00
»
406,449.00
. 4,23IU48;74
. 1,980.053.47
. 4,469,234.02
. 6,816.973.26
.. 8,53.307.32
. 2,528,161.32
RESERVE FUND
$ 4.800.000,00
Balance at Credit. .lanuary 31. 1921
W.FRANCIS, CH.EASSON.
President. General Manai:.r
Toronto, 3Ist .lanuary, 1921.
Auditor's Report to the Shareholders
I have compared the above Balance Sbtet wlili the books and accounts at the chief ofHce of The Standard Bank of Canada, and the
certified returns received from its branches, and after checking the cash and verifying the securities at the chief office and certain of the
principal branches on 31si .lanuary. 1921. I certify that in mj- opinion such Balance Sheet exhibits a true and correct view of the state of
the Bank's affairs aciordini; to the best of my information, the explanations given to me, and as shown by the boohs of the Bank.
in addition to the examination mentioned, the cash and securities at the chief office and certain of the principal brandies were ctiecked
and verified by me at another time during file year, and found to be in accord with the books of the Bank.
All Information and explanations leaulred have been given to rae, and all transactions of the Bank which have come under my notice
have. In iiiv opinion, been within the powers of the Bank.
G. T. CLARKSON. F C.A..
ToriiMtn Fi'liniarv nth 1'1'JI nf Clark^nn. Gordon & Dilworth. Toronto. Canada.
432
56
THE MONETARY TIMES
Volume 66.
CORPORATION FINANCE
(Continued from page UO)
overdraft among the liabilities of $215,347. A sinking fund
investment of $153,803 makes its appearance among the
assets; other investments have been increa-sed $40,000 to
$100,000, and accounts payable are up about $180,000 at
$530,189. There are few other changes of note.
In his report to the shareholders, J. E. Aldred, as presi-
dent, said: "The company's gross income was increased very
materially by increased sales of power on July 1, 1920, which,
however, only added to the company's income during six
months. Unexpected expenditures had to be made during the
year by the payment of heavy exchange rates on the bond
interest payable in New York. No serious accidents and no
abnormal occurrences took place in the operation of the
compr.'ny's plant during the year. Steady progress has been
made in the extension of the power plant and while this work
has been somewhat delayed, it is expected that before July
1st of this year the two additional units will be in operation.
This will bring the total capacity of your company's plant
up to 165,000 h.p."
Barcelona Traction, Light and Power Company. — The
December opei-ations of the company and its subsidiaries
produced the following results: —
1920. 1919. Increase.
December, 1920. Pesetas. Pesetas. Pesetas.
Gross earnings from opera-
tion 3,147,789 2,134,986 1,012,803
Operating expenses 1,105,149 913,450 191,699
Net earnings 2,042,640 1,221,536 821,104
Aggregate gross earnings
from March 1 27,655,193 20,634,049 7,021,144
Aggregate net earnings
from March 1 18,117,501 11,808,913 6,308,588
Canada Cement Co. — Increase in cost of production much
greater than the incre&se in the price received for their pro-
ducts of the company had the effect of curtailing the com-
pany's business last year and curtailing the profits on con-
tracts performed, according to the annual statement just
made public. Not only was coal cost up 540 per cent., but
labor wa'S up 145 per cent., helping to make an average in-
crease in operating costs of 196% per cent., during which
time the increase in the selling price of cement had risen
only 90 per cent. During the past fiscal year the com-
pany earned 3.1 per cent, on the common stock, but paid the
full 6 per cent, dividend, which necessitated a drawing from
surplus of $525,887, in order to permit the writing off of a
proper amount for depreciation, which last year a^mounted to
$810,491, against $1,149,584 in 1919. During that year the
write-oft" for depreciation was permitted after the common
dividend had been paid, by the withdrawal from surplus of
$241,666, so that in the past two years the company, in order
to pay the common dividend and at the same time allow for
a proper depreciation reserve, has drawn from surplus the
sum of $767,553. This has resulted in helping to reduce the
surplus account from $2,677,643 at the end of 1918 to $898,-
972 at the end of last year. ,
Net earnings last year, before depreciation, etc., were
down 22 per cent, from the preceding year at $2,362,742, de-
preciation allowance w&s $330,000 smaller, bond interest $18,-
000 smaller, and the balance left for common dividends
amounted to $424,630, or, as stated, 3.1 per cent.
The company's balance sheet contains, among other
changes, a reduction of $900,000 in investment account, and
S'U increase of nearly $2,000,000 in inventories, with a new
item in the liability side of the account of $275,000 bank
loan. Accounts receivable are up $250,000 and call loans
are down $40,000. Accounts payable have been increased
$1,-500,000 to $1,949,475. Total assets show slightly more
than $1,000,000 increase over the preceding year.
Maritime Telegraph and Telephone Co., Ltd. — The
eleventh annual financial statement, covering the year 1920,
shows net revenue of $215,158, compared with $153,147 in
1919. Dividends of $188,795 were paid, as against $164,980
previously, and after other provisions there was a surplus
of $23,677, while in the previous year the surplus wa-s only
$1,642. Principal changes in the balance sheet are as fol-
lows : —
1920. 1919.
Seven per cent, preferred. . . $1,220,384 $1,000,000
Six per cent, preferred 1,000,000 1,000,000
Common stock 850,000 850,000
Bonds 1,500,000 1,500,000
Accounts payable 235,311 128,838
Bills payable 210,000
Reserve 1,184,876 1,109,987
Plant 5,789,233 4,981,442
Investments 99,625 113,533
Total assets 6,318,255 5,697,962
The number of telephones in use on December 31, 1920,
was 29,163, the increase during the year of 2,761 being the
largest in the company's history; 1920 was the first full year
under the new schedule of rates. These rates proved to be
not sufficiently high under existing conditions to enable the
company to earn the full 8 per cent, on the value of its pro-
perty allowed by statute, but it is hoped that with the gradual
reduction in the cost of material the net earnings of the
company may during the coming year fairly approximate
this amount.
Many of the holders of the 6 per cent, preferred stock
of the company ha-ve protested against the issue of 7 per
cent, preferred stock ranking equally with the 6 per cent.
In order to meet the wishes of these shareholders, a resolu-
tion was submitted at the annual meeting, and passed,
authorizing the directors, with the consent of the holders of
the 6 per cent, preferred stock, to exchange it for 7 per cent,
preferred stock, when in their judgment such action is de-
sirable. $1,000,000 of 7 per cent, stock, authorized to be
issued in 1920, was not well received by the public, owing
to the high cost of money, such a security apparently not
being attractive.
In order to provide necessary funds for capital expen-
diture, the directors were compelled to make an issue of 7 per
cent, refunding mortgage bonds. $500,000 of these bonds
were issued and sold since January 1, 1921, the proceeds of
which have taken care of the large amounts showing in the
statement f.-s of December 31, 1920, for bills payable and
accounts payable, the company having, at the present mo-
ment, a comfortable cash balance.
I
Mackay Companies. — A slightly reduced income was re-
ported at the annual meeting of the Mackay Companies held
at Boston this week. The item described as "income from
investments in other companies," which comprises the one
source of receipts, according to the annual report, amounts
to $4,867,988, compared with $5,021,094 a year ago. Dis-
bursements in dividends were slightly lower, amounting to
$4,230,336, compared with $4,355,988. Operating expenses,
including Federal income tax, etc., amounted to $535,400, com-
pared with $644,883, which enables the companies to carry
forward a balance of $103,251, compared with $20,223 a year
ago. The companies' present position is strong, there being
cash on h&nd of $129,148, as against $:30,581 last year, and
the surplus is $2,047,626, compared with $1,944,374. Invest-
ments stand practically unchanged at $93,298,878, and no
change is reported in the outstanding stock, the preferred
being $50,000,000, and the common $41,380,400.
Clarence H. Macka-y, president, in his report to share-
holders, said: "During the year your cable system was main-
tained in excellent condition and transmitted a volume of
traffic greatly in excess of any pre-war year, and the pros-
pects for a continuance of a heavy volume of cable business
seem assured. Mention was made in our last annual report
of experiments with, and trial of new devices, which promised
to increase the efficiency of the cables. Your trustees are
February 18, 1921 THEMONETARYTIMES 59
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I The Ontario Equitable Life and Accident |
I Insurance Company |
I HEAD OFFICE - WATERLOO, ONT. I
I BEGAN BUSINESS NOVEMBER 23rd, 1920 |
I SALIENT FEATURES OF THE FIRST ANNUAL REPORT FOR YEAR ENDING DECEMBER 31st, 1920 |
B Total Receipts Insurance in Force Reserves ■
I $150,632.94 $1,053,300.00 $20,278.00 |
I Gross Assets ONTARIO EQUITABLE POLICIES Gross Surplus |
I $174,984.76 MAKE INSTANT APPEAL $99,632.79 |
■ They contain a Double Indemnity Feature, a Special Disability Clause, Liberal Guarantees, |
1 Up-to-date Benefits and Privileges and give the Maximum Insurance at Minimum Cost. 1
I SPLENDID AGENCY OPENINGS THROUGHOUT ONTARIO |
1 AND THE MARITIME PROVINCES |
I M. P. LANGSTAFF. A.I.A.. F.A.S. S. C. TWEED |
g Assistant Manafjer and Actuary President and Managing Director a
I The Ontario Equitable Life and Accident Insurance Company |
I HEAD OFFICE - WATERLOO, ONTARIO 4is |
MiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiimiiiiiiiiiiM^^^^
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I I
I The Western Life Assurance Company f
I Head Office - - - WINNIPEG Canada I
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I I ji:iiwwiiiiinu|iniiiiiiiiiiiiiiiiiiiMiiiiiiiiiiii(liiriiiiiiiiiiinnminuiiii»itiiniiiiiiiiiu ■
I Summary of Results for Year Ending 31st December, 1920 |
I Assurance New and Revived ... ... .. ..$1,308,750.00 |
I Premiums on Same •■■ •■• 44,705,25 1
I Assurances in Force ... ... . .. . 4,233,907,35 |
I Total Premium and Interest Income ... ... ... 167,036.80 |
I Total Expenses of Management .... • ... ... 65,313.95 1
I Policy Reserves ... ... ... .. -. 291,969.00 |
I Total Assets 385,109.96 |
I Average Policy .... ... ■■. ... 2,306.04 |
I Premium per $1 ,000 Insurance collected in Cash .... 30.30 1
I Average Rate of Interest Earned .... ... 8.06 |
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I JAMES CARRUTHERS, ADAM REID, |
1 Fresidenl Managing Director and Secretary J
I 423 I
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THE M O N E T A R.Y TIMES
Volume 66
now R'ble to announce that the promise has been fulfilled.
London has been brought into communication with New
York without relays, and without the sacrifice of any of the
advantages of the old method of operation, and very dis-
tinct advantages of the new. The circuit over which this
direct and constant transmission is niKintained, is composed
of 3,461 miles of submarine cable, and 168 miles of under-
ground lines, the total distance amounting to 3,629 miles."
Interest of Canadian investors in Mackay is still very
large, it being understood that the number of individual
shareholders in the Mackay Companies in Canada exceeds the
number in the United States, although the total holdings in
the United States are considerably larger than those in
Canada.
RECENT FIRES
Osborne Chambers. Hamilton, $70,000 — High School at Essex,
S60,000— Sterling Rubber Co., Guelph, $50,000—
.Music Store, London, $42,000
Brampton, Ont. — February 11. — The residence of Mrs.
Hunter Arnott was destroyed by fire. One fatality.
February 12 — A fire occurred at the farm of William
Hounslow, Lot 2, Fifth Line, West Caledon, when his barn
and the contents were destroyed. The loss is partly covered
by insui'ance.
Essex, Ont.— February 15 — Fire caused by an overheated
furnace did $60,000 damage to the High School. There is
insurance of $18,000.
Guelph, Ont. — February 10 — The factory of the Sterling
Rubber Co. on Waterloo Avenue was damaged by fire. The
loss is estimated at $.50,000.
Hamilton, Ont. — February 13 — Fire of an unknown origin
caused damage estimated at $70,000 to the Osborne Cham-
bers, owned by the Cumberland Land Co.
February 15 — The premises of L. S. Garoshowitz, 342
James Street North, were destroyed by fire. The loss is esti-
mated at $1,500.
Lethbridge, Alta. — February 8 — A number of houses in
the vicinity of 9th Avenue and 8th Street were damaged by
fire. The barn of M. Moscovitch was destroyed by fire.
London, Ont. — February 10 — Damage estimated at $42,-
000 was done by fire, which broke out in Mason and Risch's
music store.
Marbleton, Que. — February 10 — The residence of N.
Breton, of Earle, Que., a few miles from Marbleton, was
destroyed by fire. One fatality.
Moncton, N.B. — February 14 — Mrs. Oliver G. Steeves and
five children perished when their house on the Niagara Road
was destroyed by fire.
Montreal, Que. — February 16 — The premises of the New
Idea White Wear Co. at 34 Notre Dame Street West, was
destroyed by fire.
Newcastle, N.B. — February 13 — The home of Ernest
Gardiner at Grand Downs, about 25 miles from Newcastle,
was destroyed by fire. Two fatalities.
Ottawa, Ont. — February 11 — A fire broke out in the
watse paper chute at the Government Printing Bureau, doing
considerable damage.
February 13 — The storeroom and steel door department
of Messrs. McFarlane and Douglao Co., Ltd., cornice works,
was damaged by fire. The fire, which was caused from an
explosion from a bale of cotton, did $12,000 damage. The
loss is covered by insurance.
Port Arthur, Ont. — February 13 — Fire of an unknown
origin did upwards of $20,000 damage in the "News-Chronicle"
building. The plant was rendered useless for some weeks,
though the fireproof building was itself scarcely damaged.
The largest loss was caused by water to machine!^ and smoke
and water to stock. The "News-Chronicle" and the "Fort
William Bulletin," which was being published from its oflice,
will now be issued from the office of the "Fort William Times-
•lournal."
Rothesay, N.B. — February 8 — Fire destroyed the resi-
dence known as "The Willows," owned by Senator Domville.
Loss about $15,000.
Ste. Helene, Kamouraska, P.Q. — February 2 — A fire de-
stroyed the general store of N. Morin. Loss about $10,000.
Shawinigan Falls, Que. — February 8 — Two houses, be-
longing to M. Hormisdas Bourassa, were destroyed by fire.
The loss is estimated at $20,000.
ADDITIONAL INFORMATION CONCERNING FIRES
Belleville, Ont. — January 26 — A frame and roughcast
dwelling, situated on the east side of James Street, was dam-
aged by fire. The loss to building and contents is $592, with
insurance of $700. The fire was caused by thawing frozen
water pipes.
London, Ont. — January 31 — The kitchen and dining-room
of J. H. Glover, 519 Bathurst Street, was damaged by fire.
The loss is $1,200, with insurance of $700 in the Dominion
Company. There were four fatalities.
London, Ont. — January 18 — The new building at the
Queen Alexandra Sanatorium was destroyed by fire. The
fire was caused by heat through tiles and cement of fire-
place. The total loss is $2,200, with insurance of $25,000 as
follows: Dominion Fire insurance, $6,000; Northwestern Na-
tional, $6,000; Nationale Fire, $10,000; National Ben Franklin,
$3,000.
Manitoba. — The following is the statement of fire loss in
December: — During the month there were 127 fires with a
loss of $102,765. Forty-four fires occurerd in dwellings,
and farm property suffered wi^h 30 fires. Carelessness with
matches caused 12 fires.
Ottawa, Ont. — January 18 — Flax mill and offices be-
longing to Central Experimental Farm. The total loss was
$31,985.
Paris, Ont. — January 15 — The skating rink owned by
the Paris Amateur Athletic Association, Ltd., was damaged
by fire, which is believed to have been caused by a cigarette
stub. The loss is $12,800, with insurance of $6,050 in the
Waterloo Mutual and Perth Mutual Insurance Companies.
Port Stanley, Ont. — January 26 — Bam and stable be-
longing to Francis Stanton were destroyed by fire. The loss
is $1,500, with $200 insurance in Merchants Fire Insurance Co.
Toronto, Ont. — Fire Department records for January show
that during the month there were 212 alarms, with an esti-
mated loss of $225,025. Twenty-two fires were caused from
stoves and furnaces, matches caused 11, dump and grass
fires 9.
Whitby, Ont. — January 13 — Infirmary at the Whitby
Hospital for Insane was damaged by fire. The loss is $5,000,
with no insurance.
Woodstock, Ont.— December 13— The top flat of the
three-story building owned by the Sentinel-Review Co., Ltd.,
was desti'oyed by a fire which was caused by a gas jet coming
in contact with paper stock. The total loss is $9,025, with
insurance of $85,820 in the following companies: Atlas,
$3,000; Guardian, $21,100; Nationale, $8,000; Northern, $13,-
200; Norwich Union, $9,500; Sun, $3,000; Royal, $2,800;
North British and Mercantile, $5,500; Hand-in-Hand, $6,500;
Liverpool and London and Globe, $10,220; Waterloo and
Mutual, $3,000.
A copy of The Monetary Times for April 2, 1920, is wanted.
Any subscriber sending in a copy will have his subscription
advanced one month.
ESTAB
.ISHED I8S6
Queensland Insurance Co.
Limited
of Sydi
ley, N.S.W.
Capital Pa
id Up $2,500,000
Aeeetfi Exec
ed $5,000,000
Agtmli Wanud in
Unntnanttd Dlitrieti \
Manager
i FOR Canada:
Montrea
Agencies Lim
ited
Montreal
JAS D CHERRY. Manager
VlTI.IiHKD EVFRV FkUIAV
The Monetary Times
Printing Company
rif Canada. Limited
'The Canadian Enginter"
Trade Review and Insurance Chronicle
of Canada
Established 186'/
Old as Confederation
JAS. J. SALMOND
President and Genei-al Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
Ontario's 1921 Legislation to be Comprehensive
More Revenue Required to Meet Higher Expenditures — Rural Credits System
Recommended by Special Committee — Taxes on Mining May be Increased — London
Wishes to Try Commission Government, and Other Municipal i'roposals are Numerous
THE 1021 session of the Ontario legislature opened on
January 25. This is the second session under the ad-
ministration of the Farmer-Labor Government, and the first
in which it had behind it a year of administration for which
it was entirely responsible. The financial position of the
province as set forth by the treasurer has already been re-
ported in these columns.
The speech from the throne referred briefly to hydro-
electric development, roads, education, and rural matters,
readinc in part as follows: —
"At the present time the civilized world is passing
through a period of readjustment to peace conditions, pre-
senting serious problems to this province. The situation
calls for wise and generous counsels, in order that industry
may be maintained and labor afforded every possible oppor-
tunity for employment. My government has found it ad-
visable under the circumstances to extend financial assist-
ance to provide relief for the unemployed, and will initiate
legislation for public co-operation to the same end. I trust
that before long a general revival of business activity will
restore normal conditions in this province.
"The agricultural industry has suffered materially from
the rapid deflation of the market prices of farm products,
and the probable effect of this loss upon our rural districts
is a matter of importance to the whole province. A con-
sideration of the situation looking toward a better under-
standing and a more general co-operation between our rural
and urban populations will, I trust, lead to beneficial results,
and tend toward reducing the cost of distribution and better-
ing rural conditions in the province.
Rural Development
"One of the most practical ways of improving the con-
ditions of rural life is by means of a judiciously designed
good roads system. This matter has been kept prominently
before my ministers during the past year, and much progress
has been made in the direction of broadening the scope of
the plan.s for highway improvement. It is felt that good
roads are among the greatest material needs of the province
at the present time, by reason of the fact that they will not
only help to solve the transportation problem and promote
the economic welfai'e of the whole community, but will also
contribute immeasurably to the convenience and happiness
of the people.
"Scarcely less important to the general welfare is the
distribution of electrical energy in the rural districts on
terms more nearly approaching an equality with those on
which the urban population is served. Special study has
been devoted to this subject by a committee of the Legis-
lative Assembly, and this committee has agreed upon findings
which will be laid before you at an early date. It will be
found that the report is not only a valuable contribution to
the information available on this subject, but that it ad-
vance? important suggestions for legislative action.
"During the recess the minister of agriculture visited
Great Britain for the purpose of studying conditions in re-
lation to immigration, the marketing of the products of the
province to better advantage, and the removal of the em-
bargo on cattle.
"The attention of the government has been directed un-
ceasingly during the past year to the important subject of
education, with a view to increasing the efficiency of both
i-ural and urban primary schools, as well as the secondary
schools of the province. The question of providing school
organizations to meet the needs for fuller educational ad-
vantages in rural districts will be dealt with in a practical
and comprehensive manner. A committee is at present en-
gaged in considering the high school courses of study and
their relation to general education and to vocational training.
In due course a report will be laid before you giving the
findings of the commission of inquiry into the subject of
university finances.
Labor Legi.slation
"The welfare of industrial workers is a matter in which
all classes are deeply concerned. Under the legislation of
last session a minimum wage board has been established
and a plan for the payment of mothers' allowances has been
put into operation. These measures have met with general
acceptance and give promise of satisfactory results. A num-
ber of recommendations for legislation for the welfare of
labor have been endorsed by the International Labor Con-
gress. In this connection certain measures will be submitted
to you, and in order to facilitate the consideration of such
matters you will be asked to appoint a standing committee
on labor legislation which will afford the House the oppor-
tunity of hearing and weighing the views of all parties in-
terested". Tht earnest desire of the government and the
people of the province is that your legislation will promote
harmony and progress in our industrial relations.
"It is a matter of much satisfaction that the financial
strength of Ontario is so well recognized by the investing
public as to enable the government to secure advantageous
(terms on the money market for the securities of this pro-
%'ince. This fact was demonstrated in a remarkable way by
the success of the recent provincial loan. While the expendi-
ture of the government under existing conditions of high
cost and expanding undertakings has of necessity increased,
the revenues are sufficiently buoyant to meet the public re-
quii'ements.
Hydro Development
"Much progress was made during the past year in the
construction of the Queenston-Chippawa development, which,
when completed, will greatly increase the quantity of elec-
trical energy available in this province. .Arrangements have
been made for the purchase by the Hydro-Electric Power
Commission of the plant and transmission lines of the Elec-
THE MONETARY TIMES
Volume 66.
trical Development Co. The details of this important pro-
posal will be submitted to you for your consideration and
I'atification. Projects for the construction and acquisition of
certain radial railways have been made the subject of in-
vestigation and the result of that investigation will be laid
before you in due course."
Bill to Aid Fire Prevention
Backed by the Ontario Fire Prevention League and by
Provincial Fire Marshal E. P. Heaton, a bill is to be brought
before the legislature to place restrictions upon the sale of
apparatus designed to protect buildings against damage by
lightning. The bill is entitled "The Lightning Rod Act," and
provides for extensive penalties against firms or individuals
engaged in the sale of lightning rods who do not comply
with the regulations. It is set forth that all firms engaged
in the sale of lightning rods pay a yearly fee of $50 and an
additional 80 cents for every $100 received from sales. The
apparatus must bear inspection and be passed by the Fire
Marshal. Each agent must pay a fee of $3 a year and must
alct for one firm only. The agent is made liable to a fine of
$200 for infraction of the regulations. It is further set out
that, in the event of damage to a building properly installed
with lightning protection, the firm selling is liable to the
return of the money paid for the redding of the building
or to pay for the damage done. To insure this each firm
must deposit securities of $10,000 with the Fire Marshal.
The "Fire Departments Two-Platoon" bill brings up a
question about which there is much difference of opinion in
the province. It provides that the head of a fire department
divide the force into two parts, working for alternate periods
of twenty-four hours each, or for 10 hours of day work
and 14 hours of night work, alternating every week.
Hydro-Electric Taxation
A special committee on hydro-electric affairs i-ecom-
mended a tax of $2 per horse-power on all power generated,
and the placing of the Hydro-Electric Commission under a
government depprtment. It is the opinion of those close to
the government that a tax of some sort on all. power devel-
oped will come even if it is not found advisable to put such
a measure through this session. It is pointed out that such
a tax would reach not only hydro power but all»the private
power developments in the province which are now escaping
taxation. The question of direct government control under
a minister is not generally favored and is not likely to
materialize.
Municipal Measures
London, Ont., is applying for permission to adopt a com-
mission form of government. A private corporation, Fecunis.
Ltd., has petitioned the legislature for power to expropriate
property in connection with their establishment of a mining
plant at Sudbury. Mimico's bill to allow the town council
to apportion the share of cost to be paid by property owners
whose property abuts on the new trunk sewers and the cor-
poration's share passed the Private Bills Committee on
Februai-y 1.5. The bill empowers the council, by a three-
fourths vote, to set a rate under the Local Improvements
Act. The bill allowing Belleville to issue debentures for
$30,000 to cover share of purchase price of the Belleville and
Prince Edward County bridge also passed, but the committee
rejected Kingston's bill providing for assistance from the
city to Thomas Watson, of Woodstock, in establishing an in-
dustry. Kingston also had a bill passed which exempts for
five years from all taxation, excepting school and local im-
provements, all dwelling houses built in 1920-21 up to the
value of $2,500.
There is very little likelihood that a bill providing for
old age pensions will be introduced in the Ontario legislature
at this session. Hon. Walter Rollo, at one time, had thought
of sponsoring such a measure, but at a recent meeting of
the Labor group opinion was divided on the matter. Some
of the members were of the opinion that it was a matter for
the Dominion government. A bill will probably be introduced
to permit the municipal railway of Port Arthur and
Fort William to collect a 7-cent fare. A slight amend-
ment is also made to the Succession Duty Act, 1914.
A bill to amend the Bureau of Municipal Affairs Act requires
that any organization receiving a grant from the province,
from any municipality or trust fund, shall file not later
than January 31st a statement of its finances, constitution
and officers.
Rural Credits
The report of a special committee on rural credits pro-
poses two branches of work, one for short and one for long-
term loans. It suggests the establishment by private capital
of a savings institution to accept deposits from farmers
and others at 4 per cent, interest, the security of the sav-
ings being guaranteed by the government. From the fund
established, loans would be made to farmers for short terms
upon the certificate of a credit society made up of farmers
who would be in a position to pass upon the needs of the
applicant, his financial integrity and who would be jointly
liable for the repayment of the loan. These loans would, it
is thought, be available to the farmers at 5 or 5% per cent.
The establishment of a "land mortgage bank" or some
institution of the type implied by the term, would provide
longer loans. This institution would be organized with a
capital of $500,000 or more subscribed by farmers, or, if
necessary, partially by the government. This capital would
be used to make loans upon first mortgages to the farmers.
When the loans reached the sum of $75,000 to $100,000 the
mortgages would be massed and debentures issued against
them, the money secured being then available for new loans.
The Commission believes that on the basis of 6'T(. interest on
debentures, borrowing loans could be made on mortgage
security at 7 per cent. The loans would be from periods of
five to thirty years, from $500 up to $12,000, and would be
repayable in small annual instalments.
Attitude of the Banks
The report, after dealing at considerable length with
systems in operation in other countries and in Manitoba,
declares its conviction that a rural credit system would be of
inestimable value to Ontario agriculture. The establishment
of co-operative credit through I'ural ci-edit societies in which
a group of farmers became security for individual loans has
been a success elsewhere, but it could not be recommended
for Ontario owing to the attitude of the Canadian banks.
"Strange as it may seem," says the report, "the officials of
the Canadian Bankers' Association have stated to us that
they do not see how they could be more liberal to borrowers
organized into a rural credit society with collective liability
than they are now to individual borrowers." Apart from
this lack of co-operation, the fact that the banks are by
recognized parties restricted to three months' loans, makes
the ordinary bank loan of little value to the farmer. With
the ordinary banks barred to them, the farmers, according to
the report, must turn to other sources of credit, and the
logical thing for them to do was to enter the banking field
themselves.
To Increase Mining Taxes
It is proposed at the present session to increase the tax
on gold and silver mines from three per cent, to four per
cent, of the net profits up to $1,000,000, and from five to
seven per cent, on profits over that amount. In the case
of nickel mines the proposal is to make the tax seven per
cent, on all net profits over $1,000,000. Now the tax is five
per cent, on profits up to $1,000,000. "Net profits" though
tlie real basis of the tax, in each ease is differently arrived
at in the case of nickel profits. There, because of the fact
that the nickel is largely refined in the United States where
operating profits cannot, of course, be taxed by the province,
the tax is technically upon the values of the nickel ore at
the pit mouth, but the value is determined by the market
value of the refined nickel less costs of refiing, treating, ship-
ping, etc.
February 25, 1921
THE MONETARY TIMES
DEBATE ON SPEECH FROM THRONE CONTINUES
Government Still Criticized for Usurpation — Political
Discussions are Feature of Week
THE WEEK IN PARLIAMENT
Thursday, February 17
In Commons: — Debate on address.
In Senate: — (a) Debate on address; and (b) Dominion
Elections Act amendment bill, second reading.
Friday, February 18
In Commons:— (a) Select Standing Committee appoint-
ed; and (b) Debate on Address.
In Senate: — (a) Hon. John A. Macdonald, Shediac, N.B.,
new Senator, introduced; (b) Dominion Elections Act amend-
ment bill, third reading; (c) Debate on .\ddress; and (d) Re-
vision of Punishments Bill, second reading.
Monday, February 21
In Commons: — (a) Dominion Elections Act amendment
bill, first reading; (b) Debate on Address.
Tuesday, February 22
In Commons: — Debate on Address.
In Senate: — (a) Debate on Address; (b) Gold and .Silver
Marking Bill, first reading.
Wednesday, February 2.^
In Commons: — (a) Debate on .Vddress; (b) Dominion
Elections Act amendment bill, second reading.
In Senate: — (a) .Vddress in reply to Speech from Throne
adopted without division: (b) Hon. J. A. .Stantield, Truro,
N.S., new Senator, introduced; and (c) Senator Turriff crosses
floor.
(Special to The Monetary Times.)
Ottawa, February 24, 1921.
Of the week's happenings in parliament as outlined
above the most conspicuous event was the action of Senator
Turriff, of Assiniboia, in crossing the floor of the Senate to
the cross benches as the first, and, so far, the only member
of the Progressive party in the Upper Chamber. Fiscal
controversies, as a rule, find only a mild echo in the Senate,
but it was because of his views on fiscal policy that Senator
Turriff made the move. If by any turn of event a Progressive
party government should come to power, this would give
them as a government leader in the Senate the only Senator
who has declared himself an adherent.
The debate on the address came to an end in the Senate
Wednesday afternoon, but it will probably not be concluded
in the House of Commons until Wednesday next .4s in the
first week, the debate has concerned itself mainly with the
Opposition contention that the government has "out-stayed
its mandate." The Opposition and Progressive parties are
expected to vote "No Confidence" to a man, although in the
Progressive party there is some difference of opinion as to
the value of a general election just now when another year
would bring about redistribution, and would increase the
representation from the west. Four occupants of No Man's
Land, however, have the present intention of voting with the
government, and it is expected that this will enable the gov-
ernment to tide itself over the crisis in spite of the large
number of members away from the House because of ill-
health. The possibility of a general election this year is not
overlooked, however, and indications are that the government
may bring on an election if their majority should prove very
slim.
The only legislation of importance introduced came from
the Senate. One bill amends the Dominion Elections Act
so that existing lists will be used in Ontario cities and towns
as the basis of revision in order to save an expenditure of
$300,000 in making new lists. It passed through the Senate,
and will pass through the Commons before Monday. Another
bill from the Senate calls for the revision by a Court of Ap-
peal of punishments that are inadequate or too severe
through an error of the judge in criminal cases. It has
been passed by the Senate twice, but has not gone through
the House of Commons because of lateness in arriving there.
The only other bill introduced so far except the Gold and
Silver Marking Act, which is as yet unexplained, is one by
Sir George Foster to amend the Trade Mark and Design Act
in order to adhere to the International Convention for the
protection of industrial property.
EASIER MONEY CONDITIONS IN WEST
Swift Current to Have- Conference on Finances — Some
Building Planned for This Year
(Staff Correspondence.)
Winnipeg, February 24, 1921.
BOTH wholesale and retail trade in Winnipeg and
throughout the west is showing improvement. Re-
tailers report good steady business for this season, in many
cases somewhat better than expected. In wholesale circles
a fine spirit of optimism prevails, and from reports trade
all through the country is showing an improvement.
Merchants who withheld orders are now finding their stocks
very well depleted, and travellers are booking good orders
for spring delivery. These conditions, from various mer-
cantile agencies, indicate that improvement in trade condi-
tions is general all over Canada, and resumption of manu-
facturing industries is everywhere taking place.
On inquiry from local financial institutions money is
becoming easier and credit for business extension more easily
obtained, prices for the present are regarded as pretty well
stabilized, and further reductions are not looked for at pre-
sent. There have been very few instances in this territory
in cuts in cost of labor.
The real estate outlook is also improving, and from in-
formation received there are quite a number of inquiries for
building property. It is expected that the Hudson's Bay Co.
will proceed with their new building on Portage Avenue
this spring, and others who contemplate building dui'ing the
coming season have had plans prepared and submitted to
builders for estimates on cost of construction. Building
costs in Winnipeg are slightly lower than a year ago, and
it is not expected that there will be any further reduction
for the present, the contention being that the price of mate-
rial has declined as far as possible without a readjustment
of labor costs.
May Increase "Telephone Rates
John E. Lowry, new commissioner of the Manitoba gov-
ernment telephones states, that an increase of approximately
25 per cent, in the telephone rates throughout the province
will be sought from the public utilities commissioner. . Fur-
ther extensions of the automatic system will be proceeded
with. Mr. Lowry states, that in the other large cities of
Canada the rates are from 15 per cent, to 30 per cent, higher
than in Winnipeg.
The bond holders of the city of Swift Current Sask., are
holding a meeting there this week, at the request of Mayor
Rule. In connection with the city's financial obligations an
adjustment of present obligations will be asked for that will
lessen the present heavy strain demanded of the ratepayers.
Swift Current along with other western centres had a decided
boom a few years ago. and will in time become a large dis-
tributing and trade centre as its optimistic citizens at that
time predicted. Svrift Current is in the centre of an excel-
lent agricultural district and is bound to grow. As a result
of what might be called "boom time development," the council
have asked for a conference with the bond dealers to find
a wav out of their financial difficulties.
THE MONETARY TIMES
Volume 66.
NORTHWESTERN LIFE ASSURANCE COMPANY
SAVINGS DEPOSITS UP TWENTY MILLIONS
While one of the infant organizations operating in the
Canadian life underwriting field, the Northwestern Life
Assurance Co. is able to report good progress. Last year
policies actually issued amounted to $1,505,000, an increase
of $524,106 over the previous year. Total assets of the
company show an increase of $64,004, and now amount to
$647,382. Liabilities to the public amount to $485,857, an
increase of only $47,136. Reserves at $230,756 are on a
considerably higher basis than required by the Dominion
government. Total revenue for 1920 amounted to $155,243,
being $68,304 in excess of expenditures. Death claims were
extremely light, being only 15 per cent, of the expected.
In view of the fact that the company was organized in
the early stages of the war and underwent its initial stages
of organization during a period of business turmoil, the show-
ing is unusually good. Shareholders have approved the issue
of $1,000,000 additional shares, which the directors pointed
out is needed to cope with the rapid increase in business
One interesting phase of the company's business is the
fact that for three years past it has written life insurance
without medical examination. Mention of the Northwestern
was omitted in the leading article in Tin- Monetary times
last week.
An increase of about $20,000,000 in savings deposits and
large declines in current loans and note circulation, are the
principal features of the January bank statement. The pre-
liminary figures issued by' the government show the follow-
ing results: —
Changes from
Jan., 1921. Dec, 1920.
Reserve fund $ 133,343,590 + $ 295,085 '
Note circulation 206,175,821 — 22,582,766
Demand deposits 584,025,710 — 73,471,032
Notice deposits 1,313,093,870 + 20,086,382
Total deposits in Canada . . . 1,897,119,580 — 53,384,650
Deposits outside 318,622,947 — 38,148,062
Current coin 85,118,010 + 2,430,451
Dominion notes 186,589,527 + 9,100,247
Deposits, central gold reserve 89,702,533 — 23,650,000
Call loans in Canada 112,474,318 — 2,228,923
Call loans outside 191,854,003 — 9,-588,649
Current loans in Canada . . . 1,264,490,463 — 37,313,879
Current loans outside 173,379,729 — 11,160,694
Total liabilities 2,642,380,435 — 135,928,112
Total assets 2,926,867,072 — 130,112,417
A more detailed analysis will be given in these columns
next week.
STANDARD BANK ANNUAL MEETING
MACDOUGALL BROS., MONTREAL, FAILS
At the annual meeting of the Standard Bank on Feb-
ruary 23, the president, Wellington Francis, said that the
policy of the bank would be to cux-tail future loans, as far
as possible, having at the same time due regard for i-eal
requirements. While demand deposits, he pointed out, had
decreased, it was interesting to note that savings deposits
had increased, and that the b&nk had maintained its profit
at an increase over the preceding year.
In referring to the business of the bank during the past
year, C. H. Easson, general manager, explained that a re-
duction of $9,700,000 in non-interest bearing deposits, »s
compared with last year's report was due to the withdrawal
by the Dominion government of balances deposited with the
bank. An item of $4,494,000 shown as due the Dominion
government represented advances under the Finance Act in
1914 by the government against Imperial government treas-
ury bills, and, while these bills &re drawn at short dates and
have been renewed from time to time, it is a matter of satis-
faction that the Imperial government had made arrangements
to liquidate all bills held by the banks in Canada, and pa.y-
ments were now being received monthly. Note circulation
was down $632,218, which, he pointed out, was evident of the
deflation which had been so long anticipated.
Mention was also made of the attention given by the
bank to the requirements of the ?..gricultural industry in
Ontario and the westei-n provinces. "We are taking deep
intere.st in the rural credits bill now before the Ontario
legislature," said Mr. Easson, and he indicated that the banks
generally would probably support the government in carrying
out the purpose for which the bill was designed.
Mr. Easson, in closing, st&ted that theVe were some in-
dications of improvement in business generally. Problems
had been brought about by the fall in prices of commodities,
and it was gratifying to find conditions throughout Canada
as good as they were. So far, the journey through the pro-
cess of deflation had not been marked by any grea.t disturb-
ance in commercial affairs. The recovery, however, could not
be expected to be rapid or pronounced for some time. Com-
mercial profits had been reduced, and it was only right to
expect that banking profits would be also. He expressed
the hope that the Dominion government would see its way
clear to do r.'Way with the war excess profits tax, as it was
generally felt that this action would help towards thrift
and economv.
Announcement was made on the floor of Montreal Stock
Exchange on February 23 that the firm of Macdougall Bros.,
with offices at 13 St. Sacrament St., had formally a.ssigned.
No surprise whatever was occasioned by the development in
the brokerage district, where it had been common knowledge
for some time past that such action was pending, a seizure
on the firm's affairs having been placed severaj weeks ago.
The definite suspension of the firm was not accompanied by
any efl'ect marketwise, since its commitments and clientele
are of a decidedly restricted order, and little, if any, liquida-
tion of securities will follow the winding up of business,
which was resorted to, it is understood, for family reasons.
Macdougall Bros, was one of the oldest stock brokerage
firms in the city, and in recent years has been conducted by
E. R. D. Applegath as sole partner. The firm, however, has
done little business for some time past.
WATERLOO COUNTY LOAN AND SAVINGS COMPANY
From every standpoint 1920 was a progressive year for
the Waterloo County Loan and Savings Co., according to the
annual report which is given in detail on another page of
this issue. Mortgage loans are shown at $1,040,532, com-
pared with $735,172 in the previous year. Holdings of gov-
erniTient and municipal bonds are a few thousand higher at
$1,435,385. More capital was employed in the business, the
paid-up shares amounting to $638,764, as against $604,331
previously. Deposits decreased from $1,188,870 to $1,127,700,
but debentures outstanding increased from $545,389 to $643,-
225. Reserve account is $120,000, being an increase of $15,-
000 for the year.
As a result of the increased business the company is
able to report profits of $56,994, as against $51,113 for 1919.
Premium on new stock amounted to $1,753. $6,000 was trans-
ferred to special contingent fund.
Notwithstanding the fact that the company's career ex-
tends only a few years back, the company has built up a
favorable business. Total assets are $2,789,917, of which
mortgages and government and municipal bonds are the
principals. The company has two offices, one being at
Kitchener and the other at Waterloo, Ont. A dividend of
six per cent, has been maintained during the life of the
organization.
February 25, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
0f Canada
Address: Corner Church and Court Streets. Toronto, Ontario, Canada.
Telephone: Main 7404, Branch Exchange connecting all departments.
Cable Address: "Montimes, Toronto."
Winnipeir Office: 1206 McArthur Building. Telephone Main 8409.
G. W. Goodall, Western Manager.
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The Monetary Times does not necessarily endorse the statements and
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PRINCIPAL CONTENTS
Editorial: p.^ge
Our Currency Inflation 9
Operating a State Bank 9
The Movement of Bank Loans 10
The Legible Signature 10
Special Articles:
Ontario's 1921 Legislation to be Comprehensive , . . . 5
Debate on Speech from the Throne Continues 7
Financial Condition of Leading Canadian Cities . , 18
Work of the Quebec Legislative Session 26
■ Railroads Lose Money in 1919 30
Source of Dominion Revenue 32
Mutual Fire Underwriters of Ontario 42
Monthly Departments:
Trade of Canada in January 22
Index Numbers of Wholesale Prices 24
Weekly Departments:
Corporation Finance 40
News of Industrial Development in Canada 44
Insurance Licenses and Agency Notes 46
News of Municipal Finance 48
Government and Municipal Bond Market 50
Corporation Securities Market 54
The Stock Markets 56
Recent Fires 60
(»l K ( I KRKNCY INFLATION
HOW soon can the Canadian dollar return to par in New-
York? is a question which cannot be answered by
any juggling of trade figures. Balances of trade do exert
an influence upon rates of exchange, but they do not show
the invisible balances, due to financial arrangements, nor
do they take into consideration variations in the intrinsic
value of the units of currency themselves. It is to the lat-
ter cause that the demoralization of some foreigm rates of ex-
change is due. What is the use of saying that the German
mark has only a fraction of its former exchange value,
without also pointing out that the German mark of to-day
has only a fraction of its former intrinsic value.
Our own ('anadian dollars share to a lesser degree in
this condition. The pre-war Canadian dollar was a gold dol-
lar. The present Canadian dollar is a paper dollar. In
other words, it is not worth as much to-day as it was seven
years ago. Then how can it be worth as much in the United
States? Moreover, since the dollars of the United States
are still gold dollars, our currency shows a depreciation when
compared with thei»s.
On December 31 there were Dominion government notes
outstanding to an amount of $311,714,486, against which
gold to the amount of $97,145,774 was held. The govern-
ment also held securities to the amount of $158,707,960
against these notes. For some months past these figures
have varied as follows: —
Notes
outstanding.
Dec, 1919 $318,690,0811
Sept., 1920 .... 303,065,376
Oct., 1920 320,012,915
Nov., 1920 326,839,592
Gold
held.
$114,821,962
95,205,901
95,222,381
96,021,001
Securities
held.
$154,237,000
149,620,125
166,715,125
173,689,025
Dec, 1920
311,714,486
97,145,774 1.58,707,960
million dollars is not covered at all. In answer to the claim
that we are meeting the business depression more easily than
are other countries, it may well be pointed out that we are
assisted in doing so by proceeding slowly with deflation. In
this respect we stand between the United States, which has
maintained its sound position, and the European countries,
whose currencies are in such a hopeless state that deflation
seems impossible for the present. Great Britain was also
farther from being on a gold basis, but such rapid strides
are now being taken that the future soundness of British
currency is assured. In view of the firm attitude taken by
Great Britain and by our neighbor to the south, is there
not wisdom in the appeal recently made by Hon. Edward
Brown, provincial treasurer of Winnipeg, and by Stephen
Leacock, professor of political economy in McGill University,
Montreal, that Canadian currency be restored to a gold
basis as soon as possible?
OI'EHATING A STATE BANK
These figures, it will be noticed, show that about half of
our currency is covered bv securities, and that fifty to sixty
WHEN' it is customary on the part of some to compart-
Canadian banks with American ones, to the prejudice
of the former, the experience of the Bank of North Dakota
points a moi'al. It is interesting if not amusing. It further
throws a light on the regime of the Non-Partisan League in
the State, in the domination of its politics. Revelations in
regard to the methods of the bank have been disclosed by F.
W. Cathro, its director-general.
The bank was created by an act of the Non-Partisan
Legislature of 1919. This act provided that the governor,
the attorney-general and the commissioner of agriculture,
composing the industrial commission, should control the bank.
It also provided that the bank should be opened upon the
sale of an authorized issue of bonds of $2,000,000, the bonds
to be sold by the commission and the money turned over to
the bank. The bank was created the depositary of all "state,
township, municipal and school district funds, and the funds
of all penal, educational and industrial institutions, and all
10
THE MONETARY TIMES
other public funds." And the deposits in the bank were
guaranteed by the state.
The bank was opened in accordance with the state law
in February, 1919. The bonds, however, had not been sold,
and representatives of the commission took them to a num-
ber of cities — Minneapolis, Chicago, Philadelphia and New
York — but failed to find any buyer for them, because finan-
cial interests were a little doubtful of the success of the
league experiment. Then the bonds were brought back to
Bismarck. In the meantime, upon the opening- of the bank,
a vast amount of public money — several million dollars in
three weeks — came in to the bank. As Mr. Cathro said to
an interviewer, "These deposits had to be put to work."
Then came the exchange of cheques. Mr. Cathro drew
cheques on the bank totalling $2,000,000. He took them to a
meeting of the industrial commission and turned them over
to buy the capital bond issue. But since the law provided
that when the commission sold the issue the proceeds of the
sale should be turned back to the bank as capital, the com-
mission at once drew its cheque for $2,000,000 and gave it
back to Mr. Cathro for the bank. In other words, the Bank
of North Dakota purchased its own capital with its own de-
posits and then was given back the purchase money.
THE MOVEMENT OF BANK LOANS
LATEST bank figures show deflation to be proceeding slowly
in Canada. The January statement records a decrease
in current loans of $37,000,000, compared with $58,000,000 in
December statement, $45,000,000 in November, and $12,000,-
000 in October, previous to which the volume of current loans
had been steadily climbing for a good many months. The
increases in the early months of test autumn, after the slow-
ing down in business had definitely set in, could, of course,
be attributed to the necessities for crop moving, and that
necessity might also explain the comparatively small decline
in current loans for the last few months of the year. The
moderate decrease revealed in the January statement may
mean that business has sufficiently picked up to be a factor
in holding current loans at a relatively stationary level.
It is interesting to note in this connection that the re-
ductions of the past four months have now brought the cur-
rent loan total to a point $37,000,000 above the total in
January of last year. The peak, however, did not come until
September, when the total was $1,417,520,756, since when
there has been a total reduction of $153,030,293. It is of
importance that, while the current loans in Canada are only
$37,000,000 above January, 1920, the notice deposits or
savings have increased in that period by $149,000,000, and
the gain of $20,000,000 in notice deposits in January alone is
a matter for satisfaction. The drop of $22,000,000 in note
circulation for one month is a substantial step in deflation,
and has more than overcome the gains of a year in that
regard, as note circulation now is $10,000,000 below January
of last year.
THE LEGIBLE SIGNATURE
ONE of the good things that has come out of the war is
the adoption of the custom of typewriting the name of
the writer at the bottom of a letter; above or below this
the name is written in ink. This has long been a custom in
certain Washington departments but it had not permeated
the business world until the thousands of business men who
were in government service during the war saw the ad-
vantages of the custom and carried it with them when they
returned to civil life. The convenience of it may be readily
recognized. Every business man receives one or more letters
daily, signed in such undecipherable scrawl as to make a
reply impossible unless the name is obtainable from the let-
terhead. Some signatures are so attenuated that the letters
get lost; others are so cramped as to need the services of
a chemist to break the name up into its constituent parts;
others are worked up into more or less monogram form to
look pretty though unintelligible, and so on. A prominent
citizen of a country town enjoying the convenient name of
"J. J. Jackson" had what many regarded as the prize "fist."
In his handwriting his name bore more resemblance to a row
of Lpmbardy poplars than to anything else.
The reopening of factories, and even some additions and
extensions to plants, is an encouraging sign, not necessarily
of present business, but of ability to sell at lower price
levels.
As a solution of the problem of city congestion, why
not try Russia's plan, which has in four years decreased
Moscow's population by 50 per cent, and Petrograd's by 71
per cent. ?
January trade returns show a favorable balance of $8,-
000,000. There is an unfavorable balance of $20,000,000 for
the ten months but by the end of the fiscal year we may
break even.
The price index of 281.3 for January is a big reduction
from the figure of 336.4 in January, 1920. Meanwhile the
consumer, who is unaware of this important movement, is
patiently waiting to be shown.
Subscriptions towards the family of the late Wm. Hol-
land, shot and killed in his office on January 14 last, have
reached over $7,000. The list is on the floor of the Montreal
Stock Exchange, and is open to brokers and their clients.
If the judgment of a Quebec Court in the case of Cahaii
vs. the Home Bank means that a power of attorney is not
conclusive evidence of authority to withdraw funds, will not
the work of the bank be made much more 'difficult on this
account?
The enormous debts accumulated by Canadian cities, as
shown on page 18, would discourage any but the most
optimistic. As the appeals of some of our western cities
show, this optimism is not always accompanied by the
ability and willingness to pay promptly.
A new form of insurance which covers electric motors
against breakdown of the motor and damage to other pro-
perty of the assured is offered by the Royal Indemnity Co.,
Toronto. The insurance company, however, is not liable if
the breakdown is caused by a fire or sprinkler leakage.
Fifty million dollars will be entrusted by the British
government to the Canadian firm of Stewai't and MacDonnell,
headed by Major-Gen. J. W. Stewart, C.B., to be expended
on enormous engineering works in the Gold Coast colony on
the west coast of Africa. Major-Gen. Stewart has returned
from England, after making final arrangements for the car-
rying out of the first unit of the great harbor works at
Takoradi. This unit will cost $17,000,000, and will take from
five to six years to complete.
THOSE cancellations!
"Cancel my order at once," came the telegram to the
factory. The owner perpetrated the only new joke in the
millennium. His telegram in reply read: "Your order can-
not be cancelled at once. You must take your turn."
February 25, 1921
THE MONETARY TIMES
Collections — Domestic
or Foreign
/^UR system of over 530
^"^ branches in Canada and
abroad enables us to supply
the manufacturer and mer-
chant with information on
trade risks impossible to se-
cure from other sources.
Collections entrusted to us will
be handled promptly and to your
satisfaction.
THE CANADIAN BANK
OF COMMERCE
Head Office
Paid-up Capital
Reserve Fund
$15,000,000
$15,000,000
Real Banking Service
All branches of this Bank are in
a position to give the most com-
prehensive Banking service.
Government and Municipal
Securities are dealt in. Foreign
Exchange bought and sold.
Money Orders and Letters of
Credit issued. Collections made
on all points in Canada or
overseas.
IMPEKIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
Helping
Humanity
DETWEEN the wheat on our prairies
and the daily bread of the people
of this country and of distant lands runs a
long chain of operations, each link of
which is strengthened by banking services.
For 55 years this Bank has been privi-
leged to furnish a substantial part of the
financial energy necessary in the growth,
transportation and marketing of Canada's
vast crops.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55, OLD BROAD STREET. E.C.2
THE MONETARY T I M K S
Volume 66
PERSONAL NOTES
George L. Legate succeeds G. L. Sniellie as manager for
British Columbia for the Canada Permanent Mortgage
Corporation.
James Fairlie, formerly associated with the Manufac-
turers Life Insurance Company, of Toronto, has been ap-
pointed vice-president and actuary of the Mutual Life In-
surance Company, of Illinois.
A. M. Stewart, chief clerk of the Canadian head office
of the Northern Assurance Company, of London, England,
has been promoted to be fire superintendent. A. M. Boucher,
inspector for Ontario, has been appointed chief inspector.
Both have been connected with the Canadian head office for
a number of years.
W. C. NoxoN has been appointed managing director of
the Canadian Loan and Agency Company, Limited, to suc-
ceed V. B. Wads-
worth, who has re-
tired from that
position. Mr.
Wadsworth has
been associated
with the company
for upwards of
forty- four years,
and has been man-
ager for twenty- two
years. His re-
signation takes ef-
fect on April 1.
Mr. Noxon is well-
known in Canada
and in England,
having been re-
cently director of
the overseas branch
of the Dominion
Trade and Com-
merce Department,
London, England.
He has been a
member of the
Canadian Loan and
Agenc> bou i toi a number of years. Mr. Noxon is also
prominent in other financial circles having been at one time
a member of the bond house of Brent, Noxon and Company,
Toronto.
J. E. LOWRV, superintendent of the Edmonton telephone
system has resigned to take the commissionership of tele-
phones under the Manitoba provincial government, and W.
R. Pearce, superintendent of the Alberta government tele-
phone system, is going to New Brunswick to be the head of
the telephone sei-vice in that province.
A. J. Nesbitt, pi-esident of Nesbitt, Thompson and Com-
pany, Limited, has been elected a director of the Winnipeg
Electric Railway. He is well-known in the bond and security
investment field, having headed a syndicate which recently
distributed a block of Winnipeg Electric prefen-ed stock.
Mr. Nesbitt is also a director of Southei-n Canada Power
Company, Limited.
G. F. MacLure, who recently joined the staff of the
Royal Bank of Canada at Montreal, has been appointed to
the position of assistant manager of the Ottawa branch of
the bank. Mr. MacLure was formerly with the Bank of
Nova Scotia, and for the past year or more has been as-
sociated with R. C. Holden in the work of the Victory loan
special committee in Montreal.
Sir Augustus Nanton, of Winnipeg, has been elected
to the directorate of the Royal Trust Company, Montreal.
Sir Augustus Nanton is associated with many of the chief
business undertakings of the country. He is the senior resi-
dent partner of the firm of Osier, Hammond and Nanton, of
Winnipeg, and is a director of the Canadian Pacific Railway,
the Hudson's Bay Company and the Dominion Bank.
Frederick Williams, manager for Canada of the Motor
Union Insurance Company, Limited, returned to Canada
recently from New York, where he had spent several days.
He left agK.in on February 20, for special mission to
South America, and in the meantime the business here will
be under the charge of William Maclnnes, assistant manager.
The Motor Union has large colonial and foreign connections
both on its own direct account and through its subsidiary
or allied compi^nies.
OBITUARY
Andrew J. Dawes, president of the National Breweries,
Limited, and vice-president of the Merchant Bank of Canada,
died in Montreal recently, at the age of 7o years. In ad-
dition, Mr. Dawes was director of the Bell Telephone Com-
pany, the Northern Electric, the Windsor Hotel Company,
the National Locomotive Company, Ottawa Traction Com-
pany, the London and Lancashire Life Insurance Company
and others corporations.
UNION FIRE AND CASUALTY CO.
Gross premium income for 1920 of $304,762, an increase
of $106,140, is recorded by the Union Fire and Casualty Co.
Total income was $216,002, compared with $167,419 in 1919.
S. D. Works is president of the company, A. E. Ham, vice-
president, and J. 0. Melin, secretary-treasurer.
The balance sheet now shows assets of $270,691, an in-
crease of $60,559. Bonds total $138,780, accounts receivable
$43,720, and cash $20,393. Liabilities to the public total
$118,781, leaving paid-up capital, $101,521. and surplus,
$50,889.
MONTREAL STOCK BROKERS ASSIGN
Announcement was made on Febnaary 14 by Malcolm C.
Oswald, senior partner of the stock brokerage firm of Os-
wald Brothers, of Montreal, that "owing to the fraudulent
manipulation of the firm's books by Gerald H. Bruce, the
junior partner, and owing to false f.^nd fraudulent state-
ments sent by him to certain of the clients, the firm of Oswald
Brothers has in the meantime ceased to do business. The
frauds, which were of an extensive and complicated nature,
were discovered by Mr. Oswald on February 10, and have
been admitted by Bruce."
The house accordingly filed &• declaration of voluntary
assignment. The Montreal Stock Exchange has been officially
informed of the firm's action. Gerald H. Bruce has been con-
nected with the Oswald firm for about eleven years, and was
admitted to partnership about two years ago. The firm of
OswaJd Brothers is one of the oldest stock brokerage con-
cerns in the city. Mr. Oswald would not say what the de-
falcations amounted to, but intimated they exceeded $200,000.
Bruce was later a.rrested, and when he appeared before
the courts on February 22. new and substituted charges con-
cerning losses of more than $300,000 were preferred against
him by Malcolm Oswald, senior partner. Bruce's bail was
raised from $20,000 to $25,000, the largest amount ever de-
manded here from a prisoner.
At the annual meeting of the Commercial Finance
Corporation, which was held in Toronto recently, A. S. Wig-
more and Thomas Leeming, both of Toronto, were elected to
the board of directors.
February 25, 1921
T II
MONETARY TIMES
|iiiiiiiinniiniiniiiiiiiiiiiiiiiiiiiiNiuiimiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiininiiiiiiniiiiiiiiiniiiiiiiNiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiini|
I The Sterling Bank |
I OF CANADA |
illlllllllllllltllUllllllimillllll llllinilUllllllllllllllllllllllllllllllllllllllHlllNllllllllimiiliniimumm. iiihliuiiij 11,1
There is no institution, large or small, which will
not experience the stimulating influence of our
'' Personal Service " policy. Let w, explain why —
in your office or ours.
Head Office
KING AND BAY STREETS, TORONTO
The National Bank of Scotland
Limited
Incorporated by Royal Charter and Act of Parliament. Established 182.';
Capital Subscribed i^S.OOO.OOO 825,000.000
Paid up 1,100,000 .5, .500.000
Uncalled 3,900.000 19,500.000
Reserve Fund 1.000. 001) 5.000,000
Head Office - EDINBURGH
VVII,LIAM CARNEGIE. General .ManaKcr. GEORGE A. HLNTEK. Se;.
LONDON OFF1CE-37N1CHOI-AS LANE, LO.MBAKDST., E.C. 4
T. C. HIDDElC, UL'GALI) S.MITH.
Manager Assistant Manager
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonics domiciled in London, arc retired
on terms which will be furnished on application.
The Law of Intestacy
Will distribute your property
according to a set of definite
fixed rules — probably not as you
would wish — unless you make
a Will,
To make sure your Will is in
order have your lawyer draw it.
To make sure it is faithfully
carried out have a Trust Com-
pany written in as your executor.
Booklets on request
National Trust Company
Limited
Capital Paid-Up
Reserve
18-22 KING STREET EAST
$2,000,000
$2,000,000
TORONTO
Commonwealth Banf? of Buetialia
All cla
acted i
Londor
;s of GENERAL AND SAVINGS BANK business are trans-
all the principal cities and towns of Australia, Rabaul and
JAS. KKI.L.
Deputy Gove
DHNISON MILLER,
Cover
ESTABUSHEX) 1879
AUoway & Champion
Bankers and Brokers
Members of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchange*
Convenience
of Clients
Accurate accounting and
regular detailed statement
for Clients form an integ-
ral part of this Company's
methods.
THE BANKERS
TRVST0OMB\NY
Head Offices: MOiNTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
THE MONETARY TIMES Volume 66.
BANK BRANCH NOTES SUN LIFE ANNUAL MEETING
5ank of Nova Scotia announce the following changes:
P. W. Murphy, formerly manager of the branch at 224 St.
James St., Montreal, has been transferred to the Toronto
office as superintendent of branches. W. B. Snow, formerly
assistant manager of the bank at Ottawa, has been trans-
ferred to the Montreal branch as assistant manager. C. E.
Fairweather succeeds Mr. Snow as assistant manager at
Ottawa.
E. B. Hesson, manager of the Bank of Montreal at
Schreiber, Ont., died suddenly on February 16th.
The Sterling Bank announces the following: J. B. Rob-
inson, formerly accountant at Almonte, who has been at head
office for some time, has been appointed acting manager at
the new branch at Madawaska, Ont. M. A. McLaughlin, ac-
countant at Port Stanley, is acting manager of the Varna
branch! R. J. Moore, teller at Staffordville, has taken over
the accountant's duties at Port Stanley. F. E. Watkinson
has taken over the management of the Staffordville branch.
.J. B. Harwicke, of the credit department, head office, has
taken charge of the Parkdale, Toronto, branch. Mr. Wilson
is being transferred to other work.
The Imperial Bank of Canada, who have been doing busi-
ness for the past two years in temporary quarters at 1246
St. Clair Avenue West, Toronto, have moved into their new
office at the north-west comer of St. Clair and Boon Avenues,
which is fully equipped to take care of every banking need,
including a safety deposit box department.
A purse containing nearly two thousand dollars in gold
was presented by the customers of the Standard Bank at
Brantford to W. C. Boddy, manager, retiring from the bank's
employ after some forty years' service.
The Dominion Bank is erecting a new building at the
chief corner at Long Branch Park, Ont. The Merchants Bank
will build a bank to the east of the main entrance on the
Highway, and the Royal Bank office, which was erected this
winter, will be opened in a few days.
The Canadian Bank of Commerce have opened a new
building at Port Colborne, Ont.
The Bank of Toronto announce the opening of a new
branch office in the Arcade building, Hamilton.
The Royal Bank of Canada announce the opening of
branches at" Montreal, Mount Royal, and St. Lawrence and
Matanzas, Calzada de Tirry.
During the month of January there were twenty-seven
branches of Canadian banks opened. The following have not
already been mentioned in The Monetary Times: Annotto Bay,
Jamaica, Royal; Brighouse, B.C., Royal; Dauphin, Man.,
Royal; Dorenlee, Alta., Imperial; Glasgow Station, Ont., Nova
Scotia; Gwynne, Alta., Merchants; Hammond, Ont., Na-
tionale; Lyster, Que., Hochelaga; Madawaska, Ont., Mer-
chants; Madawaska, Ont., Sterling; Notre Dame de Pierre-
N-ille, Que., Provincial; Point Anne, Ont., Standard; Ste.
Elizabeth, Que., Hochelaga; Toronto, Ont., Eastern Harbor,
Dominion; Victoria, B.C., Chinese Branch, Merchants; Whit-
ney, Ont., Sterling; Winnipeg, Kinsington Street, Nova
Scotia.
The branches opened were distributed among the banks
as follows: Royal, 9; Merchants, 3; Nova Scotia, 2; Hoche-
laga, 2; Sterling, 2; Dominion, 2; Imperial, 1; Hamilton, 1;
Nationale, 1; Provinciale, 1; Standard,!; Commerce,!; Mont-
real, 1.
The following fifteen branches were closed: Adanac,
Sask., Merchants; Bateman, Sask., Union; Bear Lake, Alta.,
Imperial; Campden, Ont., Commerce; Dewar Lake, Sask.,
Union; Grainger, Alta., Merchants; Griffin Creek, Alta., Im-
perial; La Durantaye, Que., Nationale; Neelin, Man., Toronto;
Orion, Alta., Standard, Port Morien, N.S., Nova Scotia; Tor-
quay, Sask., Montreal; Vimy, Alta., Hochelaga; Westerham,
Sasiv., Standard; Wycollar, Sask., Commerce.
Col. B. M. Green, manager of the Royal Bank of Canada
at Chatham, has been appointed assistant manager of a
Toronto branch of the bank, and will be succeeded by E.
Herman, m.anager of the Elmira branch.
At the annual meeting of the Sun Life Assurance Co.
recently the shareholders ratified a proposal of the board
to issue $1,000,000 par value of new stock, of which 35 per
cent, will be called. This will increase the paid-up capital
from $500,000 to $850,000, out of a total amount authorized
of $3,000,000. The old board was re-elected, with T. B. Mac-
aulay chosen again as president and managing director; S. H.
Ewing as vice-president; together with Robert Adair, W. M.
Birks, Hon. R. Dandurand, J. R. Dougall, Sir Herbert Holt,
C. R. Hosmer, Abner Kingman, Dr. H. R. Macaulay, Carl
Riordon and John W. Ross.
MONTREAL CITY AND DISTRICT SAVINGS BANK
From every standpoint, 1920 was the best year in the
history of the Montreal City and District Savings Bank.
Net profits amounted to $247,286, which compares with
$240,590 in 1919 and $234,642 in 1918. After dividends and
other disbursements amounting to $43,227, and the addition
of the previous surplus of $280,222, the present balance at
the credit of profit and loss amounts to $323,449, which com-
pares with $243,942 two years ago.
The balance sheet, which receives considerable atten-
tion in these columns every month, and which was given in
detail two weeks ago, reflects substantial growth. Total
assets are $49,262,765, as against $45,154,851 a year ago. A
growth of more than $5,000,000 in deposits speaks well for
the prosperity of the city.
NEW MUTUAL LIFE DIRECTORS
Important changes are announced in connection with the
directorate of the Mutual Life Assurance Company of Can-
ada, at Waterloo, as follows: — F. C. Bruce, of Hamilton,
first vice-president, and a member of the board for many
years, has retired and is succeeded as a director by Mr.
Vincent Massey, of Toronto. R. O. McCulloch, of Gait, who
has been for years a Mutual Life director, has been elected
as first vice-president, while Major-General Hon. S. C. Mew-
burn, who was elected as director last year, succeeds Mr.
Bruce on the executive committee.
GUARANTEE CO. OF NORTH AMERICA
In the 1920 report of the Guarantee Co. of North Ameri-
ca, income is shown as $593,005, compared with $748,529 in
1919. The difference is largely explained by the sale of
controlling shares of the United States Guarantee Co. of
New York, with which company mutual relations and rein-
surance arrangements continue as heretofore. The income
from premiums, interest and rents was $561,174, as com-
pared with $538,244 in 1919.
During the year a dividend of 12 per cent., and a bonus
of 10 per cent, on the paid-up capital was paid to share-
holders, provision was made for all liabilities and the securi-
ties of the company were written down to accord with the
values adopted by the Insurance Department of the Dominion,
leaving a balance of $49,904 to be carried over to surplus to
shareholders, which now stands at $1,803,834.
The total resources of the company are now $3,003,630,
compared with $2,930,761 previously. The total amount of
risks in force, less reinsurance stands at $147,373,705, as
against $129,275,958 previously. At the end of 1919 it was
shown that the total amount of claims paid and provided for
since the establishment of the company was $3,030,560, while
at the end of 1920 the figure was placed at $3,106,724.
February 25, 1921
THE MONETARY TIMES
15
LONDON JOINT CITY & MIDLAND
BANK LIMITED
The Right Hon. R. McKENNA
:> B MURRAY. £u).. F HYOe. E«q.. E W WOOLCEY. Eeq
Subscribed Capital
Paid-up Capital
Reserve Fund •
. £38,096,363
10,840,112
10,840,112
. 367,667,322
HEAD OFFICE. 5. THREADNEEOLE STREET. LONDON. ^C S.
HoMEBANKt'CANADAl
THREE PROFITS IN SAVING
There are three sources of profit in a Savings
Account. In the first place you securely have
the money yoti save ; then you have the in-
terest paid on your savings; and finally, as the
habit of saving grows, the person keeping the
Savings Account deveiopes an instinct for
business.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s-6
A Newspaper Devoted to
Municipal Bonds
TTHERE is published in New \'ork City a daily
*■ and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond offering's.
Write for free specimen copies
THE BOND BUYER
67 Pearl Street
New York, N.Y.
THE
Weyburn Security Bank
Chartered by Act o( the Dominion Parliament
head officb. vveyuurn. saskatchewan
Bran'ches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart. Halbrite, Midale
GriiBBii, Colgate, Paiigman, Radville, Assiniboia, Benson,
Verwood, Readlyn, Tribune, Expanse, Mossbank, Vantage,
Goodwater. Darmody. Stoughton, Osage, Creelman, Lew-
van, Froude and Ardill.
A GENKRAI- BANKING BUSINESS TRANSACTED
H. O. HOWBLL, General Manager
TH€ MCRCHANTS BANK
Head OfTice : Montreal. OF CANADA
Est.iblished 1864.
Capital Paid-up, $10,029,622 Reserve Fund and Undivided Profits, $9,475,585
Total Deposits (30th October, 1920) - Over $170,000,000
Total Assets (30th October, 1920) Over $209,000,000
Board of Director* ;
Sir F. OrrOrr-Lewis, Bart.
Hon. C. C. Bailantyne
V. Howard Wilson
SIR H. MONTAGU ALLAN
Farouhar Robertson
Geo. L. Cains
Alfred B. Evans
Vice- President
Thomas Ahearn
LT.-tOL. J. R. MOODIE
Hon. Lorne C. Webster
A. J DAWES
E. W. Kneeland
Gordon M. McGregor
General Manager ■ - D. C. Macarow
Supt. of Branches and Chief Inspector: T. E. Mkrrett
General Supervisor - • ■ W. A. Meldrum
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramiay and C. J. Crookall, Agents
London, England, Office, 53 Cornhill : J. B. Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, LimiUd, The Royal Bank of Scotland
16
THE MONETARY TIMES
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended February 18, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows:—
Date. -g^ g;2|uMM2||
Feb 18 .... t> 28 2 2 2 0 4 0 0 44 16
Feb. 11 ....11 19 7 1 2 3 0 2 1 46 21
Feb 4 .... 6 15 0 0 4 4 13 0 0 42 18
Jan. 28 ...12 20 4 1 1 4 3 1 0 46 ..
EXCHANGE QUOTATIONS
Quotations of exchange on the United States and Euro-
pean countries as at February 24, 1921, with comparisons,
are given below. The Canadian figures are supplied by the
Imperial Bank of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
Par. Can., Feb. 24. N.Y., Feb. 24.
London, cheque . . . 4,8666 4.43 3.86%
France : 19-30 8.25 7.15
Germany 23.82 1.92 1.62
Belgium 19.30 8.67 7.47
Italy 19.30 4.20 3.64
Switzerland 19..30 18.98 16.55
United States 1.00 14 Hg
WAWANESA MUTUAL INSURANCE CO.
The Wawanesa Mutual Insurance Co. continued its suc-
cessful career in 1920, exceeding the record of 1919 by a
substantial margin. The total amount of insurance in force
at the end of last year was $93,139,456, the increase for the
year being $9,849,346, compared with an increase of $7,-
658,573 in 1919.
Actual receipts were $341,234, as compared with $301,-
062 for 1919. Losses were lower, being $128,162, as com-
pared with $139,820. Salaries and agents commissions, of
course, increased correspondingly with the increase in busi-
ness.
The Wawanesa Mutual commenced business in Manitoba
in 1896 under a provincial charter and is authorized to write
mutual fire, lightning, wind and storm insurance. Its assets
now total $1,765,897, being an increase over the previous
year of nearly $350,000. The detailed statement is shown
on another page of this issue.
CROWN TRUST PROFITS INCREASE
The gross profits of the Crown Trust Co., Montreal, for
the fiscal year ended December 31, as disclosed in the report
submitted to the shareholders at the annual meeting this
week, amounted to $119,969. Total expenses amounted to
$64,869, leaving net profits at $55,100. This, with a balance
of $15,288 brought forward from the preceding year, brings
the total up to $70,389. The above net e&rnings compare
with $44,326 the preceding year. Out of this year's profits a
6 per cent, dividend of $30,000 was paid, and $10,000 was
allotted to a reserve covering depreciation in securities, leav-
ing a balance of $30,389 to be carried forward to profit and
loss account.
In the balance sheet total assets show an increase of
$823,026 at $5,378,751. First mortgage loans show a de-
crease of $22,000 at $269,000, and call and time loans are
down about $45,000 at $125,976. The principal change is in
the cash item, which has increased from $24,000 in 1919 to
$185,759 in 1920. On the liabilities side, accounts payable
are up about $3,000, and amount due depositors about $147,000.
SPRING BUSINESS IN FAIR VOLUME
Depleted stocks are now found in many lines of trade,
the small volume of sales being offset by a minimum of buy-
ing on the part of wholesalers and retailers, when business
recovers, therefore, it may find stocks short. R. G. Dun and
Co., reporting on Montreal conditions, say that a
growing feeling of confidence in the gradual improvement of
business conditions is plainly noticeable, and more particul-
arly this week in a couple of lines that have for some months
past been much depressed. Boot and shoe orders are at last
beginning to come in more freely, and tanners report some
increased enquiry, though the actual volume of leather sales
is as yet moderate. Manufacturers of ladies' costumes, who
had a particularly poor fall business, report in some cases
that the volume of spring orders is beyond the average. The
wholesale dry goods warehouses show further groups of out-
side buyers, who report good December and January sales,
resulting in depleted shelves, and very fair sorting selections
are being made, though buying for the future is being done
more or less conservatively as yet. In groceries there is a
steady moderate distribution. There has been some discus-
sion of a possible advance in the sugar market, though no-
thing at all definite has as yet developed.
Indisputable evidence of an invigorationj in trade is
forthcoming from Toronto also, and the public interest in
commodities becomes more substantial from day to day. The
shoppers strike is a thing of memory only but it effectually
restricted rapacity and did its share in restoring values to a
normal basis. Travellers for white goods, ladies' dresses
and similar lines report really good business, while some
plants are working to maximum capacity. Clothing manu-
facturers also feel an exhilaration over prospects despite a
somewhat pusillanimous attitude on the part of retailers. It
is also refreshing to hear wholesale dry goods merchants
descanting on the possibility of a shortage in certain lines.
WEEKLY BANK CLEARINGS
The following are the Bank Clearings for the week ended
February 24, 1921, compared with the corresponding week
last year: —
Week ended Week ended
Feb. 24, '21. Feb. 26, '20. Changes.
Montreal $105,486,172 $131,772,654 — $26,286,482
Toronto 102,391,058 94,406,052 -1- 7,985,006
Winnipeg 37,528,503 37,187,925 -t- ^ 340,578
Vancouver 13,019,904 16,734,718 — 3,714,814
Ottawa 6,132,365 7,034,975 — 902,610
Calgary 6,087,450 7,640,336 — 1,552,886
Hamilton 5,052,959 5,965,841 — 912,882
Quebec 5,579,425 7,069,481 — 1,490,056
Edmonton 4,854,780 5,130,499 — 275,719
Halifax 3,890,496 3,750,076 -I- 140,420
London 2,547,709 2,583,673 — 35,964
Regina 3,058,974 3,112,007 — 53,033
St. John 2,652,166 2,791,244 — 139,078
Victoria 2,270,264 2,813,625 — 543,361
Saskatoon 1,584,787 1,771,942 — 187,155
Moose Jaw 1,164,032 1,325,040 — 161,008
Brantford 988,898 1,149,450 — 160,552
Brandon 694,882 590,537 -t- 104,345
Fort William 803,788 708,145 + 95,643
Lethbridge 462,302 626,849 — 164,547
Medicine Hat .... 363,336 372,068 — 8,732
New Westminster 421,826 634,198 — 212,372
Peterboro 767,925 781,250 — 13,325
Sherbrooke 919,870 987,957 — 68,087
Kitchener 779,399 935,690 — 156,291
Windsor 2,881,791 2,275,134 + 606,657
Prince Albert . . 351,012 456,988 — 105,976
Totals $312,736,073 $340,608,354 — $27,872,281
Moncton 1,960,617 ....
February 2'., 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 1817)
PAID UP CAPITAL - - - - jjMm. ^ 24,655,500.00
RESERVE FUND .... C^^^ ----.. 16,750,000.00
RESERVE LIABILITY OF PROPRIETORS • .^AAi^^Scf^ ( . . _ 24 655 000 00
AGGREGATE ASSETS 30th SEPT., 1920
357 BRANCHES and AGENCIES in the
$ 66,061,000.00
$362,338,975.00
JOHN RUSSELL FRENCH, K.B.E.. General Manager
lian States. New Zealand. Fiji, Papua (New Guinea), and London. The Bank tr
ged.
isacts every description
of Australasian Banking Business. Wool and other Produce Credits :
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET. E.C.2.
Agbnts: bank of MONTREAL, ROYAL BANK OF CANADA
c. s.
GUNN & COMPANY
REAL
ESTATE, INSURANCE, RENTAL AGENTS'
805 Union Trust Building
WINNIPEG, MAN.
Members of
Winnipeg Real Estate Exchange, Winnipeg Stock Exchange
George Edwards, F.C.A. Arthur
H Pbrcival EmvARDS W. Pomeroy Morgas
A. GeoppRBV Edwards Oswald N- Edwards
T. J. Macnamara T. p. Geggie
K. A. Mapp W. a. Lori.mer
W. Herbert Thompson
Charles E. White
J. L. Atkinson
John M. Edwards
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
TORONTO ..
CALGARY . .
VANCOUVER
WINNIPEG ..
MONTREAL
ACCOUNTANTS
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
CORRESPONDENTS
HALIFA.X, N.S. ST. JOHN. N.B.
LONDON, ENG.
PARIS, FRANCE.
COBALT, ONT
NEW YORK. U.S.A
—RICE & FIELDING, INC.-
FOREIGN FREIGHT FORWARDERS, CUSTOMS
BROKERS AND DRAWBACK AGENTS
81 VICTORIA ST.,
TORONTO
:<08 CORiSTiKE Bloc ,
■MONTREAL
CODES
Western Union
A li C. .Sth & 6th Editioi
OTHER OFHCES
11 BR04DWAY,
NEW YORK
40 Central St.,
BOSTON
Emtuitks iolicikd In connection with either Export or Import husinesi
A NEW BOOKLET
" Voluntary Trusts
and their Uses"
nrmS is the title of a Booklet
we have just issued setting
forth a plan adopted by many
successful business men to make
their surplus funds secure
against loss. It is written from
the layman's standpoint in plain
everyday English, avoiding legal
terms, and phraseology.
Write to-day for a copy
THE
TOROiSTOGEAEKAlTRUSTS
CORPORATIOiS
Bay and Melinda Streets - Toronto
THE MONETARY TIMES
Volume 66.
Financial Condition of Leading Canadian Cities
Dominion Hureau of Statistics Issues Figures Showing Position of Municipalities
With Population of Ten Thousand and Over — Assessment Values and Exemp-
tions Compared — Receipts and Expenditures for 1919 — Assets and Liabilities
ASSESSMENTS, tax rates, receipts and expenditures, and
assets and liabilities of Canadian cities are shown in
a booklet entitled, "Municipal Statistics," recently issued by
the Dominion Bureau of Statistics. The figures are for
1919.
The following n.re the receipts and expenditures for
1919:—
Total
Ordinary
Receipts.
Montreal, Que $20,618,253
Toronto, Ont. 38,433.669
Winnipeg, Man 8,151,777
Vancouver, B.C 4,959,836
Quebec, Que 1,908,656
Hamilton. Ont 5.057,828
Ottawa. Ont 5,771.192
Calcary. Alta 5.711,241
Edmonton. Alta 6,102,772
Halifax. N.S 921.553
St John, N.B 1,639,762
London, Ont. • 2,591,932
Victoria, B.C 1,839,281
Eegina, Sask 4,250,862
Brantford, Ont 1,261,139
Windsor. Ont. 1.192.523
Verdun, Que 440,331
Hull, Que 284,200
Saskatoon. Sask 2.485.766
Sydney. N.S 635,425
Three Rivers, Que. . . 470.646
Kiniiston, Ont 467,673
Moose Jaw, Sask. . . . 1,349.777
Sherbrooke. Que 937,158
Peterborough, Ont. . . 1.113,038
Sauit Ste. Marie, Ont. 983,091
Kitchener. Ont 528,226
Fort William. Ont , . 1.654,982
St. Catharines. Ont
St. Thomas, Ont 724.201
Westmount Que .... 1,018,964
Moncton. N.B
Stratford. Ont 1.280,060
Giielph, Ont 896,329
Lachine, Que 387,185
New Westminster. B.C. 808.197
Port Arthur. Ont . . . 768,081
Sarnia, Ont 031,586
Brandon. Man 951,256
Niagara Falls, Ont. . . 534.237
Outremont, Que 340,510
Gait Ont 563,272
Belleville. Ont 774,699
St Boniface, Man. . . 744,970
Charlottstown. P.E.I. . 157,694
Lethbridge, Alta. . . . 877,004
New Glasgow, N.S. . . 198,823
Owen Sound. Ont 863,671
Amherst N.S 244,105
Medicine Hat Alta. . . 797,063
St Hyacinthe. Que. . . . 187.571
Woodstock. Ont 345.451
Levis, Que 129.413
all
Receipts.
554.381,897
41.901,509
8,151,777
4,959,836
4,796,737
7,332,162
6,621,665
.5,711,241
7,486,505
921,553
2,256,762
3,349,418
2,036,881
4,353,339
2,177,887
1,487,600
696,018
375,877
2,832,622
635,425
1,006,672
579,673
1,349,777
1,153,158
1,145,826
1.245,432
530,875
2,856.511
Total
Ordinary
Expendi-
tures.
$22,528,470
32,236,461
6,464,846
6,077,358
1,898,229
5,605,340
4,659,336
5,660,438
5,740,931
1,192,607
1,850,444
2,882,581
1,968,129
3,661,995
1,219,985
1,420,542
607,653
300,535
2,291,298
405,275
546,146
398,727
1,525,633
75U.605
1,008,367
1,027,029
307,855
1,929,026
all
Expendi-
tures.
$54,183,612
37,813,144
6,464,846
6,077,358
4,663,537
7.329,989
5,642,695
6,038,751
7,779,489
1,192,607
2,231,944
3,606,645
2,037,529
3,700,996
2,136,733
1,692,934
696,018
376,182
2,291,885
405,275
l,006,672iiim
528,216*?!;
1.596.775 •
1.097,663
1.077.064
1.541,439
.527.273
2.881.626
1.323,943
396,329
535,924
810,939
758,081
900,928
957,623
603,854
536,640
563,272
933,640
744,970
287,794
877,004
249.419
866,671
272,782
797,063
345,951
428,455
158,213
494,368
223,641
408,699
735,429
726,310
685,735
851,387
275,845
354,720
522,407
779,943
740,113
132,837
882,775
198,247
939,288
199.623
789,067
221,813
348,023
144.797
1.266,649
799,595
1,306,357
223,641
577,221
819,377
754,166
967,558
976,166
389,885
668,032
570.965
969.061
740,113
259,207
882,775
250.282
939.288
308,379
789,067
319,813
467.472
162.652
Assets and
follows : —
Montreal, Que.
Toronto, Ont .
Winnipeg, Man.
Vancouver, B.C.
Quebec, Que. . . ,
Hamilton. Ont.
Ottawa, Ont .
Calgary. Alta.
Edmonton, Alta.
Halifax. N.S. .
St John. N.B. ,
London. Ont.
Victoria. B.C. . ,
Regina. Sask. . ,
Brantford. Ont
Windsor. Ont. .
Verdun. Que.
Hull. Que
Saskatoon. Sask.
Sydney. N.S.
Three Rivers, Q>
liabilities, as at the end of 1919, are as
Total Assets
f available).
.S 81.903.743
. 39.874.860
. 60.257,640
. 31,394.645
. 15.814,076
. 16,675.468
. 21.351.634
. 10,929.500
. 87.585.100
4.701.827
10.114.493
7,949.319
4.834.583
5,683,189
4,105,709
3,954,666
2,671,467
11,117.112
2.056,578
4.418.108
2.026.390
2.680.837
Bonded
Debt.
$118,892,119
101,832,912
39,757,397
29,054,523
15,535,386
13,219,364
18,031,193
22,864,282
28,725,827
5,015,726
7.381.247
18,200,694
10,893,857
4.098,234
3,055.727
2,986.500
2,270,943
8,886,371
2,013,500
3,969,000
1.809.530
6,958,249
Floating
Debt
> 6,910,207
1.600.112
4,451,908
1,244,448
1,349,428
2,510,475
5,456,664
237.000
1,001,000
448.181
998.816
320,500
344.047
155.000
550,595
65.000
437,638
1.384,448
Total
Liabilities.
$124,802,326
109,849,001
46.122.938
29.054,523
15,702,542
15,088.921
19.423.756
27.850.086
37,585,100
'5,114.561
8.263,283
22,823,558
11,675,960
5.202,831
3,881,287
3.488,371
2,428,843
10,234.118
2.075,600
4,835,783
2,023.698
8.339.034
Sherbrooke. Que.
Peterborough. Ont
Sault Ste. Marie, Ont
Kitchener. Ont.
Fort William, Ont.
St Catharines. Ont
St Thomas, Ont. ,
Westmount. Que.
Moncton. N.B. , . .
Stratford. Ont
Guelph, Ont
Lachine. Que.
New Westminster.-B.C,
Port Arthur, Ont. .
Sarnia. Ont
Brandon. Man.
Niagara Falls. Ont .
Outremont, Que.
Gait. Ont
Belleville. Ont
St Boniface, Man...
Charlottetown, P.E.I.
Lethbridge, Alta. . . .
New Glasgow, N.S. .
Owen Sound, Ont. . .
Amherst, N.S
Medicine Hat Alta. .
St. Hyacinthe, Que. .
Woodstock. Ont
Total Assets
(available).
$
4..539,013
2,148,996
3,663,173
66,100
3,549,782
1.423,475
210.218
2,811.524
6,239,569
3,435,798
1,446,781
3,900,230
86,525
3,369,984
606,267
2,029,908
2,373,798
1,288,315
2,020,561
1,144,156
2,173,031
1.252.306
4,830.683
1.363.457
856.110
203,165
2,304,900
2,550,914
2,731.964
2,002,231
8,266,746
3,608,375
260,805
4,318,166
2,298,233
2.073,729
2,419,000
4,503,527
4,145,635
1,240,872
3,160,246
909,960
2,850,000
1,744,010
1,392,852
3.813,788
588.600
3,925,257
950,270
1,266,075
966,000
3.746.672
591,707
980,468
754,018
551,751
281,790
245,914
65,000
77,154
204,399
598,823
308,748
264,958
72,678
1,231,652
117.495
64,163
235,699
721,018
4,.539,013
2,862,290
2,977,878
2,090,486
9,146,430
5,246,489
270,972
6,867,517
2,424,209
2,073,729
2,609,048
6.234,495
4,600,106
1.540,393
3,759,069
1,218,709
3,321,446
2,008,969
1,465,530
5,271,527
838,600
4,573,390
972,808
1,601,984 •
1,030,163
4.483,237
1,313,318
980,468
949,711
The assets do not include water-works systems and other
property of a non-saleable character. A table of assessments
and population will be found on page 20.
HOME BANK LOSES CAHAN CASE
On February 11 C. H. Cahan, senior, was given judg-
ment in his action against the Home Bank of Canada in con-
nection with the misuse by his son of a power of attorney.
The judgment was for $205,943, with interest from the date
of action, and costs. Mr. Cahan, senior, one of the most
learned and respected members of the Montreal bar, and a
former leader of the opposition in Nova Scotia, who had
been away for two months, and, had left in the Bank of
Montreal deposits aggregating $2.5,000, was surprised upon
calling- on the bank that his account was overdrawn for
about the same amount he had left at the time of his de-
parture.
Before leaving- as appeared by facts revealed at the trial,
Mr. Cahan, senior, had given a power of attorney to his
son, C. H. Cahan, junior. It was to the misuse of this
power of attorney and to the fact that Cahan, Jr., was a
director of the Corporation Securities, Ltd., a company con-
trolled by his father, and through "kyting," by means of
several accounts in banks, young Cahan secured over $400,000
which belonged to his father. Of these amounts there were-
drawn thi-ough the Home Eiank of Canada jiinety-four
cheques, representing the amount of the judgment which has
just been rendered in Mr. Cahan's favor.
The judg-ment says in part: "I accept the evidence of
Mr. Cahan, Sr., that at some time the defendant's manager
informed C. H. Cahan, Jr., that the deposit of plaintiff's
cheques and the proceeds of which were put to the credit
of his own account with the defendant, had to be discon-
tinued, the form of the cheques, the gradual increases in the
number and in the amounts for which they were drawn,
would naturally excite the suspicion of a bank manager of
ordinary experience and intelligence."
W. K. McKeown and Aime Geoffrion, K.C., authorize
the statement that the judgment would be appealed im-
mediately by the bank to the court of Kings Bench, and if
necessary would be taken to the privy council.
February 25, 1921
THE MONETARY TIMES
19
Make Your Money Work to Earn
More Money for You
Make it earn 4% per annum in a Savings Account instead of less.
You wouldn't refuse an increase in your wages, would you ? Then
why refuse an increase in the interest on your Savings Account?
It's as simple as ABC.
The Union Trust Company will pay you interest at 4% per annum,
compounded regularly. Come and open your account here. If you
cannot conveniently call, open your account by mail. Deposits
promptly aclinowledged and withdrawals by nuiii accurately and
safely dtspatched.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS
Winnipeg TORONTO London, Eng.
Saskatchewan General Trusts
Corporation, Limited
Head Oftice : Regina, Sask,
Executor Administrator Assignee Trustee
Special atteation given Mortgage Investments, Collections,
Management of Properties for Absentees and
all other agency business.
BOABD OF DIRECTOB!):
W, T. MOLLARD, President G. H. BARR. K.C.. Vice-President
H.E.Sampson K.C. A. L. Gordon. K.C. J. A M. Patrick. K.C.
David Low, M.D. W.H.Duncan J.A. McBride
Chas. Willoughby William Wilson
B. E. MURPHY. General Manager
Official Administrator for the Judicial District of Weyburn
(Trustee under Bankruptcy Act)
Every Man Intends to Make a Will
But when one ftels tit and eager for the days work, can make the ninth
hole in four, and help carry a canoe around a three-mile portage —
it's hard to contemplate the idea of a WILL with any seriousness.
That is why so many men die without making any will.
That is why so many a comfortable little fortune is wasted in legal tangles.
That is why so much property gets into hands for which it was never
intended.
Every man has rather decided views about the disposition of the wealth
that he has created and saved. And he can enforce his wishes by a
carefully drawn will and a wise choice of an executor. He can choose
no executor who will administer his estate more prudently and
faithfully than—
The Canada Permanent Trust Company.
Put y.
etfe
.d;iy. and i
THE CANADA PERMANENT TRUST COMPANY
Paid-up Capital
Sl.OOO.OOO
18 TORONTO STREET
TORONTO
i: A. II. Hessin
Providing for Education
In times of prosperity make certain that the education
of your children will be provided for in case of a reversal of
fortune. By placing a trust fund with us for investment,
an income can be provided to begin at any time and be
administered under any conditions you see fit to incorporate
in the agreement. Write us for particulars.
Chartered Trust and Executor Company
46 KING STREET WEST, TORONTO
HON. W. A. CHARLTO.N. .MP.,
President.
JOHN J. GH?SON, Managing Dii
Your friend and
The Canada Trust Company
Should you wish to have a friend act as executor
without burdening him with book-work and other
details this can be arranged by naming The Canada
Trust Company co-executor.
Competent and careful accounting is essential to
the proper management of your estate.
TiiE CANADA Trust Co^^vp^vny
" The Executor for Your Estate. "
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
The impartiality of the acts of a TRUST COMPANY and its freedom
from improper inHuencesare some of the advantages offered in
The Management of Estates
We will gladly discuss this matter with you.
CAPITAL. ISSUED AND SUBSCRIBED . .Si. 171. 700.00
PAID-UP CAPITAL AND RESERVE 1.172.000.00
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE: WINNIPEG. CAN.
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
The Security
Trust
Company,
Limited
Head Office
-
Calgary,
Alberta
Liquidator, Trustee
, Receiver
Stock and Bone
Brokers,
Administrator, Executor.
General Financial Agents.
W. M. CONNACHER
Pres. and Managing Director
20
THE MONETARY TIMES
ASSESSMENT AND POPULATION
Volume 66
In a preface to the report on municipal statistics, R. H.
Coats, Dominion statistician, states:— "For some time past
there has been a growing demand from officials, financial
corporations, economists and others interested in taxation
and similar problems, for comparative statistics of the
more important municipalities throughout Canada, more
City.
Popxilation
Total Assessed Value of Taxable
Total Value of Exemptions
Property
(land and buildings).
1901'
1911'
1919=
1901
1911
1919
1901
1911
1919
$
$
S
i
i
i
Montreal
267,730
470.480
706,600
150,479,863
384.971,991
623,820,959
38,254,130
120,119,419
196,867,846
Toronto
208,040
42.340
27,010
376,538
136,035
100,401
499,278
5200,000
123,050
128,954,144
22,355,600
20,233,130
306,751,673
172,677,250
136,579,005
642,816,690
236,023,520
•205,044,673
23,428,893
5,949,600
None
40,729,905
27,511,350
None.
'90,616,002
Winnipeg
40.146.950
Vancouver
5 36,399.825
Quebec
68,840
78,190
114,550
19,100,349
51,187,450
73,038,256
7,296,960
11,916,060
33,000,000
Hamilton
52.634
59, 928
81,969
87,062
108,143
107,732
26,010,695
623,919,705
47,383,346
'54,950,786
87,157,890
120,463,606
3,402,610
15,469,625
7,166,268
23,242,721
15,002,740
Ottawa.
44,294,616
4.398
2,626
43,704
24,900
75,000
66,000
2,307(040
906,345
52,746,600
'44,571.750
77.943,010
79,306,320
110,167
« 2,517,380
' 4,463,396
Edmonton.
« 6,947,960
Halitax
40.832
40,711
46,619
42.511
60,000
'60,000
25', 151, 200
29,840,300
37,330,810
46,013,650
7
7
19,779,700
St. John
London.
37,976
46,300
59,100
17.806,940
28,230,539
46,51^.206
40,783,044
539,470
532,730
5^239, 547
Victoria.
20.919
31,660
50,000
10,814,280
71,897,065
1,103,660
1,642,680
10,119,040
Regina
2,429
30,213
40,000
952,129
26,987,270
'40,982,515
82,561
7,897,886
15,190,300
Brantford
16,619
23,132
»33,000
6,560,905
13.402,005
15,718,805
439,500
w 2,109,075
3,839,825
Windsor
12,153
17,829
31,629
5,373.725
11,741,850
32,953,994
1,193,300
2,680,500
5,132,414
Verdun
1,898
11,629
28,432
1,796,151
2,499,630
15,085,400
215,760
285,4.55
3,809,780
Hull
13,993
18,222
'28,392
3,171,091
4,550,346
9,465,860
454,575
1,347,526
4,487,383
Saskatoon
113
12,004
28,000
" 325,380
25,221,100
28,433,044
7 _
1,826,655
2,324,835
Sydney
9,909
17,723
25,000
' -
7
9,246,854
12 1
12
12 _
Three River.s
9,981
13,691
25.000
2,423,311
7,187,074
16,356,575
1,278,206
4,627,051
11,663,553
Kingston
17,961
18,874
23,737
6,671,285
8,156,072
"13,016,727
2,597,350
3,067,350
' -
Moosejaw
1,558
13,823
23, 155
■« 2,916.840
is20,600,284
■>20,612,578
" 746,335
7.093,178
4,955,240
Sherbrooke.
11,765
16,405
22,583
4,694,215
6,988,105
12,923,261
408,300
692,275
7,831,000
Peterborough.
11,239
18,360
22,000
4,533,735
9,707.965
iS13, 112,605
576,825
1,697,520
2,458.345
Sault Ste. Marie .
7,169
10,984
21,500
1,915,630
5.223,446
17,650,175
822,500
1,982,345
1,462,510
Kitchener
9,747
15,196
21,052
" 3,410,855
" 6,286,829
11,95T:'859
! 373,000
840,980
1,522,247
Fort William
3,633
16.499
20,000
1,333,451
14,231,202
21,973,480
25,000
1,416,175
2,324,225
St. Catharines....
9,946
12,484
19,196
4,580,180
6,861,741
15,465,3.3.5
7 -
862,935
3,162,225
St. Thomas
11,485
14,054
20,000
7 _
7 _
10,248,310
7
7
1,917,690
Westmount
8,856
14,579
19,500
11,527,300
27,437,954
44,583,350
787,950
4,304,483
9,604,580
Moncton
9,026
9,959
11.345
12,946
19,000
18,106
4,457,410
8,139,660
19,000,000
8,858,350
648,100
7
1,359,025
10,375,000
Stratford
2,522,650
Guelph
11,496
15,175
17,032
3,817,255
" 7,094,870
8,832,030
7 _
2,051,200
2,190,240
Lachine
5,561
10,699
16,500
7
7
13,661,338
7
3,724,181
New Westminster.
6,499
13,199
16,000
2,. 504, 075
7,435,435
16,645,212
■' 1,. 346, 030
8,097,625
6,530,015
Port Arthur
3,214
11.220
=15,100
1,466,000
9,929,742
22.574,399
>» 4,683,270
3,848,330
Sarnia
S.176
9,947
14,649
2,253,772
4,926,741
11,092,243
420,3.50
1,099,170
1,034,309
Brandon.
5,620
13.839
14.421
1,723,225
9,062,775
15,447,978
824,159
2,066,490
4,591,967
Niagara Fall? —
5,702
9,248
14,307
7
4,346,687
10,7.i9,286
7
447,300
703,800
Outremont
1,148
4,820
12,650
1,390,861
4,411,164
17,7.50,251
292,690
951,930
5.407,655
Gall
7,866
10,299
12,500
2,706,295
4,346.815
7,580,914
7 _
1,044,197
1,780,356
Belleville
9,117
9,876
12,345
1' 3,989,836
" 4,916,817
" 6,240,165
7 -
1,065,850
' -
St. Boniface
2,019
7,483
12,225
1,312,167
11,614,520
12,547,265
448,022
1,260,190
2,274,520
Charlottetown, . .
12,080
11,203
14,000
3,725,076
4,281,170
5,704,308
100,000
100,000
1,000,000
Ltthbridge
2.072
8,050
12,000
118,605
11,908,555
11,723,655
7" -
1,483,305
5,918,705
New Glasgow.. .
4,447
6,383
12,000
1,272,655
2, 239, 2*
5.331,630
i» 61,970
i» 76,384
528,900
Owen Sound
8,776
12,558
11,768
2,880,668
5,901,930
7,022,883
382,110
1,100,550
1,459.500
Amherst
4,964
8,973
11,000
1,953,030
3,809,350
4,844,430
245,340
643,660
760,000
Medicine Hat —
1,570
5,608
11,000
795,201
4,907,.56«
14,292,838
7 -
501,995
1,345,351
St. Hyaointhe . .
9,210
9,797
10,541
2,604,200
3,216,350
4,233,818
1,115,100
2,212,600
3,245,275
Woodstock
8,833
9,320
10,150
2,752,100
, 4.236,861
5,428,345
7 -
836,720
1,387.900
Levis
7,783
7.452
10,000
'
'
•3,556,595
"
'
3,834,294
' Census of Canada. ' Estimated by City officials. ' Year 1920. ' Year 1918. ' Improvements exempt
50%. • Land and buildings only. ' Not available. ' Land only. ' Including building improvements, land
and business assessment. '" Totally exempt or liable for local improvement only. n Year 1903. '• No assessed
value placed on any of the properties. " Including business assessment. i' Year 1905. '^ In 1911 the a.s9essment
on improvements waa 60% of the value whereas in 1919 it was onlv 45%. i^ Property assessed for schools only
11.646,790 included. " Business and income. " Of this $2,507,135 is liable for school rates. " This includes
widow exemption and exemptions of manufacturers. Churches, school Jiouses and government properties are also
exempted but ho assessed valuation is placed on them.
particularly statistics of municipal finance. Jurisdiction with
regard to municipalities is vested in the provincial govern-
ments, and the first essential for comparative statistics is the
adoption of a uniform system of municipal accounting and re-
porting. A memorandum outlining a system, and looking to
co-operative action between the Dominion Bureau of Statistics
and the provincial departments, was
drawn up in the bureau in 1918 and
submitted to the provinces. It was
recognized, however, that the matter
was complex and far-reaching in
scope, and that definite action would
not be feasible without careful dis-
cussion of details, such as might take
place at a conference of Dominion
and provincial officials.
"Pending such discussion it was
thought that a useful purpose might
be served if a limited survey was
undertaken by the bureau on the
lines suggested. A schedule was
accordingly sent to urban centres
having a population of 10,000 and
over, and the present report is based
on the replies received. The bureau
tenders its grateful thanks to the
municipal officers, who, sometimes
at considerable difficulty, in view of
the diversified methods of account-
ing which prevail, filled in the
schedules with the data asked for.
Without such co-operation a state-
ment, even of the present limited
scope, would have been impossible,
the usual annual statements not be-
ing available for co-ordinated re-
sults in view of the different sig-
nificance attached to items in vari-
ous localities.
"Altogether, returns were re-
ceived from fifty-three municipalities
having a population of 10,000 and
over. In a few cases, notably
Guelph, Moncton and St. Catharines,
the reports sent in were not suffi-
ciently detailed to permit of co-
ordination with others, whilst no re-
turns were received from Chatham,
Ontario; Shawinigan Palls, Quebec;
and Glace Bay, Nova Scotia."
A historical table, showing the
population and assessment of cities
and towns of 10,000 and over, for
the years 1901, -1911 and 1919 is
reproduced herewith.
DOMINION TOBACCO CASE
A judgment involving $250,000, and of first importance
to tobacco growers in the Essex county peninsula and to
Montreal interests, was delivered in the Ontario Courts on
January 22. The three test cases decided were brought by
Norman Peterson, Charles Vamparys and David B. Steven-
son, farmers and tobacco growers, against the Dominion To-
bacco Company, the Macdonald Company and the Foster
Tobacco Company, of Leamington, and their agents, Henry
Deacon and George Jasparson.
In 1919 Deacon was agent for the Dominion and Foster
Tobacco Companies, and Jasparson for Macdonald. The latter,
it is stated, made an arrangement whereby Deacon was to
buy tobacco for him (Jasparson) in the name of Deacon's
principals. Deacon bought 1,100,000 pounds, of v\fhich he
turned 300,000 pounds over to the Dominion Tobacco Com-
pany. Jasparson, it is said, refused to take delivery of the
remaining 800,000 pounds, and then the price fell from 40
and 45 cents a pound to 13 cents, with a net loss to the
growers of about $250,000.
It was decided by Justice Middleton that the growers
are entitled to recover against the Dominion Tobacco Com-
pany, who, in turn, may make claim against Jasparson, with
interest from date of tendering delivery and $25 for change
of contract.
A commission has been named in Cuba to take charge of
the sale of the 1920-21 sugar crop, one of the members being
F. H. Beatty of the Royal Bank of Canada.
February 25, 1921
THE MONETARY TIMES
21
5n
INTEREST
RETURN
INVEST YOUR SAVINGS
in a 5%% DEBENTURE of
The Great West Permanent
Loan Company
SECURin'
Paid-up Capital $2,413,018.81
Reserves 1,050,000.00
HEAD OFFICE, WINNIPEG
BRANCHES: Toronto, Regina, Calgary,
EdmootOD, Vancouver, Victoria ; Edinburgh,
Scotland.
ESTABLISHED 18SS
Canada Permanent Mortgage Corporation
14-18 TORONTO STREET - - TORONTO
President. \V. G. Gooderham Vice-President. R. S. Hudson
Joint General Managers (?• ^- Hudson
I John INIassev
.Assistant General Manager, George H. S.mith
$ 6,000,000.00
6,000,000.00
33,065,554.15
You are cordially invited to deposit your savings with this
Corporation, which for more than sixty-five years has
rendered useful service to the people of Canada.
Interest at
THREE AND ONE-HALF
per cent, per annum, paid and compounded half-yearly.
Paid-up Capital
Reserve Fund (earned)
Investments
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building. Lomlon. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PURDOM, K.C.. President NATHANIEL MILLS. Manager
London and Canadian Loan and Agency Co., Limited
Established 1873 .'>■ !»%<;»: .-iT., T<»Kf>>T»
Paid-up Capital. $1.2.50.0(10 Rest. *l. 000.000 Total Assets. $5,067,253
Itebcntnrcs issued, one hundreJ dollars and upwards, one to five years-
Best current rates. Interest payable half-yearly. These Debentures are an
Authorized Trustee Investment. Mortgage Loans made in Ontario. Mani-
toba and Saskatchewan.
WILLIAM WEDI). Secretary V. \i. VVADSWORTH. Manager
THE
Ontario Loan
& Debenture Co.
LONDON Incorporated 1870
CAPITAL AND Unoividbd Profits
Canada
$3,900,000
551
SHORT TERM (3 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
5^1
JOHN .McCLARY. President
A. M. SMART, Manager
r^VER 200 Corporations,
^^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG. Man.
THE TORONTO MORTGAGE COMPANY
Office. No. 13 Toronto Street
Capital Account. Ij»;ai..'5.-.0.(M( Reserve l-und. S«70,«0<).(N»
Total Assets. »:t,24»,I54.?«
President. WELLLSTiTON KRA.\C1S. Esii., K.C.
Vice-President. HERBERT LANGLOIS. Esq.
Debentures issued to pay 5',V., a Legal Investment for Trust Funds.
Deposits received at 4"o interest, withdrawable by chctiuc.
Loans made on improved Real Estate on favorable terms.
WALTER GILLESPIE. Manager
Six per cent. Debentures
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver,
Fiscal Agent for B. C. Municipalities.
tnqairies Incited
Crnrral Manager - Llpnl..<'oI. «. H. DOKBELL
Canadian Guaranty Trust Company
HE:aD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trostee, Guardian, Liquidator
Assignee, and in toy other fidaciary capacity.
Official Aduiiuistrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official .■\ssignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office • - Swift Current, Saskatchewan
lOHN R LITTLE. Managing Director
22
THE MONETARY TIMES
Volume 66.
January Exports Sixty-Eight Millions Lower
Decline in Shipments of Agricultural and Vegetable Products was
Largely Responsible, Although All Accounts Showed Decreases-
Value of Imports Further Impaired to the Extent of Thirteen Millions
AFTER the excellent showing of our exports in the last
two or three months of 1920, the figures in the trade
statement for 1921 appear somewhat deficient. Last month,
according to the report of the Department of Customs, given
below, exports were $68,371,509 lower than in December.
The falling off in sales of agricultural, vegetable and animal
products was chiefly responsible for this large decline, al-
though all of the accounts, with the exception of fibres and
textiles, were lower. It is significant to note that wood and
paper exports decreased about $7,.500,000 for the month,
while animals and animal products sent out of the country
are $15,000,000 below the value of a year ago.
Notwithstanding the drastic decline in exports, the
volume of our sales abroad was in excess of our purchases
by nearly $9,000,000. Imports have been dropping steadily
for the past few months, and the January figure was further
impaired to the extent of $13,000,000.
With only two more months of the fiscal year to go,
there still remains an unfavorable balance of slightly less
than $20,000,000. While we may yet be able to show a bal-
ance on the other side, the indications are that the margin
will be very small at the end of March, whether adverse or
otherwise. From previous experiences it is reasonable to
expect a further drop in exports of our basic products.
Despite any tendency of the farmers to withhold their crops,
the bulk of the grain, etc., for export has already left the
country. Since the beginning of October, when the crop move-
ment started, shipments have amounted to $265,641,987, com-
pared with $158,255,206 in the previous year.
INPOKTS KNTEKED FOR HOME I'ONSIIMPTIOX
Agricultural and vegetable products, mainly foods
Agricultural and vegetable products, other than foods. .
Animals and animal products
Fibres, textiles and textile products
Chemicals and chemical products..
Iron and steel, and manufactures thereof
Ores, metals and metal manufactures, other than iron ;
Non-metallic minerals and products
Wood, wood products, paper and manufactures
Miscellaneous
Total
Duty collected
Month of January
3,835,217
S.2f2.763
5.404.492
10,480.846
1.229,456
1.820,168
1.360,751
4,852,100
1.346,605
1,638,441
37,260.839
9,618,580
3,783.081
4,178,029
20,383,521
1,852.018
13,990,565
2,878,608
4,478,396
2,257,302
2,898,410
66,318.510
2,278.702
2,212,6j9
924,6S4
2,967,821
. 696,777
2,015,129
722.785
5,783.917
1.254,278
2,114.405
20,971.127
6.553,450
4.773.093
2.730,385
6,980,649
9%,552
10.858.753
3.390.637
10.488.638
2.475.402
2,033.537
51,281,096
Ten months ending January
29,057,704
35.725,993
32,798,999
56.077.054
9.417,624
25.973,058
15.039,934
50.008,183
14,727.804
22.895,349
291,721,702
101.220,770
19,381,249
43,986,912
115,759,510
14,357,529
122,877,337
25.943.697
50,333,994
19,982,926
28.956,322
542,800,246
148,017,955
34.294,000
33,336.228
23.386.475
67,843,251
14.674.642
39.241.337
13,870,151
71.331,418
20.696,739
31,958.459
350,632,700
s
108,462,830
36.403.049
30,060,987
152,945,439
17.492,666
175,797.343
36.342,928
105.881,682
29,672.831
31,895,265
724.955,020
Month of January
Ten months ending January
1920
1921
1920
1921
Domestic
Foreign
Domestic
Foreign
Domestic
Foreign
Domestic
Foreign
Agricultural and vegetable products-, mainly foods
Agricu tural and vegetable products, other than foods '
Animals and animal products
$
37,858,129
3,699.388
28,386,003
5,386,641
1,427,639
7.206,773
5,588.854
3.715,200
17,944,020
6,736.027
265.371
71.594
236,308
334,232
96,500
1,890,585
232.428
41.634
110,940
289,305
$
35.996,216
1,728,222
13,.379,801
2,630.526
846,748
4,635,564
2,353.680
2,893,161
15,672,698
776,200
S
51,992
70,047
71,806
152,5.52
10,820
313,743
71.831
41.822
91.808
144.621
$
333,90(1.145
27,709,125
278.248,853
28.685,752
18,225.518
68,509,424
43,177.220
1 25,626.018
174.123,937
j 61,588.057
S
4,466,064
1,4,';4,102
6,138,253
3,458,765
3,328,331
11,566,186
2,395.722
554.209
435,602
4,581.079
S
405,225.593
22,151.605
169.918.187
17.111,091
16.702,885
68,657,207
40,447.435
35,804.372
249.747,113
30.068.047
$
1.222.438
311,486
1,239,752
Fibres, textiles and textile products
2,264,636
Chemicals and chemical products
931,987
Iron and steel and manufactures thereof
7,970,569
Nn1,''„,"irr'^ ""'' ""V^ manufactures, other than iron and steel. . . . :
Non-metahc minerals and products .
702.522
809,115
Wood, wood products, paper and manufactures
472,637
Miscellaneous
2,886,377
Total
117,948,674
3,568,897
80.912,816
1,021,042
1,059,794,049
38,378,313
1,055,833,535
18,811.519
RECAPITVXATION
Merchandise entered for consumption . .
Merchandise, domestic, exported
Total
Merchandise, foreign, exported
Grand total, Canadian trade.
Month of January
Ten months ending Jan.
1920
1921
834,521.948
1,059.794,049
s
1,075,587,720
1,055,833.535
1,894,315.997 2,131,421,255
38,378,313 18,811,519
1,932,694.310 2,1.50,232.774
February 25, 1921
THEMONETARY TIMES 23
Report of the 28th Annual Meeting
OF THE
Winnipeg Electric Railway Company
Held February 9th, 1921
At the annual general meeting of the Shareholders of
the Winnipeg Electric Railway Company, held in the head
offices of the Conipr-^ny, on February 9th, 1921, the report of
the President and Directors and the financial statements for
the year ending December 31st, 1920, were presented and
adopted.
The following directors were elected for the ensuing
year and until their successors are appointed: Sir Augustus
Nanton, A. W. McLimont, Hugh Sutherland, Geo. V. Hast-
ings, J. D. McArthur, G. W. Allan, K.C., A. J. Nesbitt, W. J.
Bulman and W. R. Bawlf.
The following a.re the officers of the company for the
ensuing year: Sir Augustus Nanton, President; A. W. Mc-
Limont, Vice-President; F. Morton Morse, Secretary; L. Palk,
.Assistant Secretary; and J. S. Mackenzie, Treasurer.
The report of the President and Directors stated:
The gross earnings for the year 1920 show an increase
of $949,221.54 over the previous year. Notwithstanding the
heavy inci-ease in wa^ges and other operating expenses, the
net income shows an increase for the year of $498,720.12.
The year 1920 began with prices of commodities and
labour climbing upward at a rapid rate, and while it did not
seem possible that this ascent could continue indefinitely,
the first half of the year hsd elapsed before there appeared
any sign of the peak having been reached.
In July a Board of Arbitration awarded increased wages
to the Company's employees, such increase being made re-
troactive to the 1st May. As a result of the Compa-ny's
application to the Manitoba Public Utilities Commission,
increased rates were granted, and an appraisal of the phy-
sical value of the Company's property was arrived at. The
increased rates and fares authorized assisted in offsetting
the increased operating expenses which had resulted from
the rising costs of material and labour.
In April last the Company's south M&in Street car barn,
together with 21 cars and other equipment were destroyed
by fire. A new fireproof, fully modern car house has been
erected on the site of the old one and all rolling stock
destroyed has been replaced. Something over $300,000 was
recovered from insurance.
The different utilities of the Company all show a satis-
factory growth over the preceding year. The gross earnings
of the Company exceeded those of 1919 by $949,221.54.
The Company has continued making extensive improve-
ments in all departments, and in that connection has ex-
pended during the year more than $900,000. This includes
replacing property destroyed by fire.
It will be observed that after payment of all fixed
charges, and making provision for depreciation, the Com-
pany made a net profit of nearly $(500,000.00, which is sub-
stantially the best showing of any year since 1914.
For the purpose of retiring as far as possible the Com-
pany's floating liabilities, a new issue of Preferred and
Common shares was authorized, which stock is being placed
on the m&rket and it is expected will all shortly be dis-
posed of.
The Company has continued its policy of providing the
public with adequate service, and seeks to establish and main-
tain good relations with the public, realizing that the welfare
of your utilities is a matter of public consequence, which
policy we believe has met with a marked degree of success.
Respectfully submitted.
A. M. NANTON,
President.
INCOME ACCOUNT
For Year Ending December 31st, 1920.
Gross Earnings from Operations $5,233,700.05
Operating Expenses, before charging Deprecia-
tion 3,428,897.43
Net Operating Revenue $1,804,803.22
Miscellaneous Income 76,700.11
Income available to meet fixed charges, etc. . . . $1,881,503.33
From which the following deductions are
made: —
Interest Charges on Debenture
Stock. Bonds, Gold Notes, etc. . $716,214.85
Extinguishment of Discount on Se-
curities 26,786.7(>
City Percentage and Car License
Taxes 181,249.01
Taxes 127,239.43
Miscellaneous Non-Operating Ex-
penses 2,942.31
Other Income Deductions 30,495.74
1,084,928.10
Net Income as shown on Accounts submitted
herewith, excluding Depreciation $ 796,575.23
Deduct: — -=■*
Depreciation 201,050.00
Net Income Transferred to Surplus $ 595,525.23
Surplus brought forward from 1919 as adjusted $1,314,420.29
Net Income for yea-r transferred* 595,525.23
$1,909,945.52
Dividend on 7';'< Cumulative Pre-
ferred Stock $ 4,444.16
Sinking Fund Appropriation 60,000.00
64,444.16
Surplus Carried Forward $1,845,501.36
440
THE MONETARY TIMES
WHOLESALE PRICES ON DOWNWARD MOVEMENT
No Indication of Slackening in Recent Tendencies — Index
Number Shows Reduction of Nine per Cent. Last Month
THERE is no indication of any general slackening of the
downward tendency of prices, according to the January
index numbers compiled by the Department of Labor. The
index number of all commodities for last month was 281.3,
compared with 290.5 in December, 336.4 in January, 1920,
286.5 in January, 1919, 258.7 in January, 1918, 212.7 in
January, 1917, 136.5 in January, 1914, and 137.1 in January,
1913.
On the whole, all groups showed declines, but under
meats, mutton and poultry showed increases for the month.
Foreigh fruits were also higher, while silks also registered
an advance. Raw furs were firmer, but all other commodi-
ties moved downward.
The following table gives the details with comparisons :-
6 si
^5
Index ^
umbers
FIGURES)
*Jan.
ly^i
*Dec.
1920
*Jan.
1920
Jan.
1911
1. Grains and Fodders ;
Grains, Ontario
6
4
5
15
B
6
3
2
17
9
3
9
It)
10
as
•,iO
11
n
12
10
33
10
14
20
U
48
16
16
17
250.3
222.0
287.0
255.0
302.7
308.1
218.5
503.1
313.7
333.3
211.7
259.6
227.7
239.0
26a. B
221.5
231.6
1GS.3
219.5
259.9
210.1
276.1
202.1
214.3
258.9
264.0
26<.3
389.1
181.3
252.1
298.3
16. 2
212.7
■-•57.8
215.3
250.9
166.4
271.7
226.5
309.6
265.3
291.9
450.3
258.8
370.1
317.1
436.5
oli.O
161.1
286.0
381.6
222 1
397.6
2;-9. 1
197.9
280.6
281.3
231 9
227.6
301 0
261 1
311.4
3.4.6
211.1
481,6
320.8
340 0
215 5
278.6
236.5
239.0
245.3
221.5
249.3
173.1
Z2B.1
270.3
210.1
300.7
212 9
256 3
306 ,'V
302,2
178.0
391.8
493 5
266 0
328.6
362 5
248.6
31.1. H
231 8
2.-5 8
171 4
i:73 2
230 4
352.5
265.3
317.6
457.0
266.8
38^7
336.5
451 3
512.0
161 1
286.5
390.2
228.1
361.6
298.0
210.3
290.5
382 8
421 1
308 8
368 4
363 6
339 2
277 0
112 2
330 0
352.3
235 5
264 4
245 1
239 0
193.1
276 9
417 0
214 6
317 0
2 8 5
216 1
348 2
223 8
282.3
112 7
380 9
158 4
647 8
,509 3
2i7.8
114 0
494 0
317 1
339 7
387 6
230 6
221 4
248 4
233.7
252 1
249.
231.1
419.9
232.4
433 3
345.7
419 2
4:f9.0
161 2
2i9 1
36J 5
215.3
1785 3
317.3
248 1
619 6
330 4
HO. 3
All
II. Animals and Meats:
Hogs and hog products
17B.7
All
III. Dairy Products
IV Fish :
179.9
Prepared fish
All
V. Other Foods:
(a) Fruits and vegetables
Fresh fruits, foreign
93.4
Fresh vegetables
Canned vegetables
All
164 a
97,7
125 2
(b) Miscellaneous groceries
Condiments...
All
VI. Textiles:
Woollens
102 3
112.9
137 5
Cottons
Silks '.■.■■■■■■
115.2
Jutes
Fla.\ products
Oilcloths
315.1
All
135 2
VII. Hides. Leather, Boots AND Shoes-
Hides and tallow
191 0
Boots and Shoes
155 7
All
168 1
VIII. Metals and Implements :
Iron and steel
102 9
Other metals
Implements
All
IX. Fuel AND Lighting:
Fuel
All
X. Building Materials:
Paints, oils and glass
111.0
140.2
All
141 9
XI. House Furnishings:
Furniture
147 1
133.9
Table cutlery
72 4
Kitchen furnishings •
121 6
All ...
128 8
XII. Drugs and Chebicals
111.1
226 5
138.8
109 3
117 3
XIII. Miscellaneous: •
Raw Furs
Sundries
All....'
All commodities
261t
1.36.5
•Preliminary figures. tEight commoditii
one line of spelter was dropped in 1915.
s off the market, fruits, vegetables, etc.
IMPERIAL TRUSTS COMPANY OF CANADA
Profits of $33,274 were made in 1920 by the Imperial
Trusts Co. of Canada, compared with $13,572 in 1919. The
usual dividend was paid and a balance of $20,942 was car-
ried forward. Trust deposits again showed a substantial in-
crease at $641,305.
Guaranteed trust account showed a reduction from $1,-
364,728 to $975,716, but estates, trusts, etc, under adminis-
tration increased $882,731 to $3,963,551.
Capital assets have increased from $273,174 to $299,735,
while total assets are now $5,239,003, as against $4,718,724
at the end of 1919. During the year A. W. Marquis, St. Cath-
arines, and George Lynch-Staunton, K.C., Hamilton, were
added to the board of directors.
EQUITABLE TRUST COMPANY, OF WINNIPEG
Opei'ations of the Equitable Trust Company since the
management was taken over a year ago by E. E. Hall, were
reviewed at the annual meeting, held a few days ago in Win-
nipeg. A rearrangement of the policy and alfairs of the
company has taken place during this period. The board now
consists of Arthur Congdon, John T. Haig, Dr. J. N. Hutch-
inson, W. L. Parrish, W. P. Riley and F. S, Harstone.
In his address to the shareholders Mr. Hall stated that
the net earnings of the company for the year were in the
neighborhood of 6 per cent, of the paid capital. The sphere
of the operations of the company will be widened to take in
a trust and estate department, and also a savings department.
As has been announced, the real' estate of the company has
been turned over to a subsidiary concern, which will operate
a general real estate business. Mr. Hall, in his statement,
reviewed the histoi-y of the company thi'ough the war period,
and indicated the steps which had been taken with a view to
successful operations in the future.
The Manufacturer's Life Insurance Co. has purchased,
for $215,000, a site on Bloor Street East, Toronto, for' a new
head office building.
COLONIAL INVESTMENT AND LOAN COMPANY
Many changes took place in the capital of the Colonial
Investment and Loan Company, Toronto, in 1920; all of which
are reflected in the annual statement, which has just been
made public. Nearly one-half of the permanent preferred
stock has been redeemed, while provision is made for the
redemption of the amount of stock certificates not yet pre-
sented. All of the setrling debentures, amounting to $423,-
352, have been paid off, while an item of $2,012,045 under
■'call and time loans secured" has disappeared.
Against these reductions in liabilities are shown similar
changes in assets. Anglo-Fi-ench bonds matured during the
year to the extent of $1,631,415 were paid, and the proceeds
were applied to the capital reductions. In addition, $651,569
Dominion war and Victory bonds were liquidated and applied
on the same account. Canadian municipal bonds and deben-
tures are also shown considerably lower at $244,810, com-
pared with $612,367 previously, while cash has declined from
$269,702 to $37,081. Mortgages and agreements for sale
amount to $1,069,185, as compared with $1,119,009. A con-
siderable amount of property on the company's hands was
disposed of during the year, and as a result the amount of
real estate now held by the company is $336,761, being a re-
duction of more than $150,000.
The reduction in capital has had the effect of increasing
the reserve ratio. The reserve fund now stands at $300,000,
while there is also a real estate reserve of $100,000. The
liabilities to shareholders total $1,250,926, as against $2,458,-
421 in 1919. The action taken ensures payment of the divi-
dend, according to J, H. Mitchell, secretary. Net revenue
last year was $92,134, as compared with $136,433, but a sub-
stantial profit was made by the retirement of the sterling
debentures, which, together with the balance brought for-
ward, made the total for appi-opriations $185,152. The divi-
dends were paid and a balance of $43,634 was carried forward.
February 25, 1921
THE MONETARY TIMES
25
Mercantile Trust Company of Canada
LIMITED
Thirteenth Annual Report
of the Directors of Mercantile Trust Company of Can*
ada. Limited, for the year ended 31st December, 1920
To the Shareholders.
Vour Dirertors have- pleasure In submitting tlielr Thirteenth Annual Report, to which is appended the usual Financial Statemenl. giving the
results of the fonipanj's business for ihi year ended 31st December, 1920, and the rfi)ort of the Auditors certifying its correctness, including their
report upon the examination of the securities.
The earnings of the Company exceed those of an.i' previous year.
The net profits for the year, after providing for all general expenses uf management. War Tnxes, Pnninrial and
Municipal Taxes, and all other charges, amounted to _ $56,736.10
The balance at the credit of Profit and Loss .it the beginning of the year was _ 7!578.56
Making available for dis'ributlon
This sum has been appropriated as follows :
Four tiuarterly dividends at 6 per cent, per annum ^
Bonus of 1 per cent, for the year 1920 .
Reserved for Income tax pa.vable In 1921
Heserved for difference between Book and Market value of Victory Loan and other Gorernment securities as of 31st-
December, 1920 . _ _
Transferred to ronllngent Itcserve _ _ „
Kal.i
ried
»30,000.00
5,000.00
4.000.00
6.500.00
2.500.00
16,314.66
To Ihe Special Reserve wVccount for possible depreclatioi, .-l ,^t- liiihes ainl cveitiue iiileresl on MHi-(n.i;ie Loans in tl
been added the sum of $2,300.00. which. In the opinion ol .sour Directors, makes ample provision lor those purposes.
The accompanying Balance Sheet shows that the total assets in the hands of the Company amount to $5,919,339.52.
Respectfully .submitted.
Hamilton. .January 27tli. 1921.
CYRUS A. BIRCE. President.
Financial Statement for the Year Ended December 31st, 1920
$ M.ooo.on
29.S43.38
22,«9.63
Capital Account —
Office Premises
Safety Deposit Vaults .
Real Estate held for sa
Mortgages —
Principal _
Interest
Advance to Estates and Loans on Debentures.
Stocks. Bonds and other Securities 135. 113. OS
Dominion of Canada and Provinces of Canada Se-
curilles 131.711.65
Debcnlures of Canadian Municipalities 25.378.31
Other B<inds, Debentures and Debenture Stocks 26.562.37
Cash on hand and In Banks 15.745.22
.148.636.33
LIABILITIES
Capital Account-
Capital Stock subscribed $500,000.00
Capital fully paid : ..$500,000.00
Reserve Fund _. 125,000.00
Contingent Reserve Fund 12,500.00
Appropriation for Dominion Taxes payable 1921 4,000.00
Appropriation to cover Depreciation on Victory
Loan and other Government Securities to mar-
ket value as of December 31st, 1920...
Dividend No. 28 and Bonus payable Jan. 3rd, 1921
Due to Banks „..„
Special Deposit
Profit and Loss .\ccount
6,500.00
12,500.00
103,450.81
20,914.52
16.314.66
Guaranteed Trust Account—
Mortgages —
Principal ,
Interest .
<'ash in Bank ,.
Estates, Trusts and Agency Account —
Real Estate Mortgages $538,358.84
(krvernment and Municipal Bonds and Debentures. 344.444.93
Securities guaranteed by Dominion or Provincial
Government 79.452.78
Investment In Loan Company Shares, etc.. by direc-
tion under Will or Trust Deed 3,959.75
Advances to Beneficiaries and Loans against Gov-
ernment Securities 5.536.37
Cash In Banks » 185.508.60
Original unrealized Assets, Including Real Estate,
Mortgages, Debentures, Stocks and Bonds, etc.,
at Inventory Vahie -
1.157.261.27
3,547,626.17
Inventory Value of Original Assets, of Estates,
Trusts and Agencies in hands of the Company
for Administration and Management
S. C. MACDONALD, Manager.
Head Office and Safe Deposit Vaults : Mercantile Trust Building, Hamilton
BOARD OF DIRECTORS
President
CYRUS A. BIRGE. Vice-President Bank of Hamilton
Vice-Presidents
. Lieut.-Col. HENRY L. ROBERTS, Orimshy JAMES TURNBULL. Toronto. Director Bank of Hamilton
Directors
Major Gen. the Hon. S. 0. MEWBURN
STANLEY MILLS. President Mills Bros., Ltd.
C. S. WILCOX. Director Eo.val Bank of Canada
W. A. WOOD, Wood, Alexander & James. Hamilton
I. F. KAVANAGH COL. JOHN I. McLAREN
MACDONALD
C. C. DALTON. Toronto, Director Bank of Hamilton
A. E. DYMENT. Toronto. Director Royal Bank of Canada
J. J. GREENE. Managing Director W. E. Sanford Manufacturing Co.
Lt.-Col. W. H. MERRITT. St. Catharines.
Vi.ePresklent Imperial Bank of Canada
THOS. C. HASLETT. K.C. SIR JOHN S. HENDRIE. K.C.M.G.
THE MONETARY TIMES
Volume 66.
Work of The Quebec Legislative Session
Agriculture, Roads. Railways, Labor and Education Touched Upon in
Speech from Lieutenant-Governor — Group Insurance for Public Employees —
New Plan of Government for Montreal — Tax on Bankruptcy Proceedings
DURING the six weeks which have elapsedj since the
Quebec legislature opened its session on January 11,
a wide range of subjects has been discussed. The govern-
ment's intentions, as regards commercial and financial legis-
lation, were outlined in the speech from the throne as fol-
lows : —
"With a view to constantly improving and increasing our
agricultural production, my government proposes to establish
demonstration farms, to be allotted according to the require-
ments of different districts. Our settlers continue to increase
the extent of our land under cultivation. Thanks to the gen-
erous subsidy you voted for colonization, many roads,
penetrating into the interior, have been opened and large
areas have been cleared. To afford settlers better facilities
for acquiring arable lands, a bill will be submitted to you
assigning to the Colonization Department the granting of
such lands and completely separating the colonization and
forest domains.
"A railway will shortly be under construction which will
connect the heart of the Temiscaming region with our great
railway systems and hasten the development of that im-
portant district.
"The workmen in the towns continue to emulate the
farmers and settlers. Our labor legislation contributes to
inspire them with the spirit of equity and respect for order
that distinguishes them.
"To meet fresh needs that are becoming manifest, a bill
will be submitted to you for the establishment of a board of
arbitration to prevent strikes among policemen, firemen and
other public employees whose duty it is to protect the citizens'
lives and property.
"In the interest of civil service officers, the government
will ask you to establish a group insurance system. It will
also request you to extend the benefits of the Pension Act
to the employees of the outside service.
"Public education has made remai'kable progress of late
years. Higher education, however, calls for special assistance
proportionate to the services it renders by forming a trained
elite and improving the lot of all classes of the people. Fol-
lowing the course you have already pointe<l out, my govern-
ment wishes to give to Laval and McGill Universities a gen-
erous aid as Montreal University received, and it will ask
you to vote a million dollars to each of them. The govern-
ment understands that these grants must not be given to
the detriment of primary, secondary and agricultural educa-
tion, to each of which it will devote zealous care."
Labor's Requests
Organized labor's wishes, as expressed to the govern-
ment on January 19, were as follows: —
An industrial accident compensation law based upon the
principle of compulsory state insurance ;^ an eight hour day;
legislation regarding the employment of women before and
after childbirth; a mother's allowance act; an act establish-
ing pension funds for aged and needy persons; a law for the
payment of fair wages and for the observance of other con-
ditions; proportional representation in provincial elections;
a double platoon system for firemen; changes in the law to
bring municipal employees under the Arbitration Act; a law
to control cold storage plants; amendments to the present
provincial law for the fixing of minimum wages for women;
amendments to the law providing for the inspection of scaf-
folding; educational and school commission legislation and
changes as regards hygienic measures.
One of the most important bills of the session thus far
is the new Montreal charter, as prepared by a special com-
mission appointed by the government. Some important
changes are contained in the bill. It abolishes the ward sys-
tem and makes the city a single electoral district. The coun-
cil will be composed of nine members, who will be elected
for four years by all the electors of the city, and the mayor
would be chosen by the councillors from their own ranks.
A general manager will be appointed to administer the city
and will be responsible to the council only. The franchise
will be extended to women and to all those who have paid
at least $10 in taxes. The election deposit for aldermanic
candidates will be abolished, but each candidate will be
obliged to have the signature of at least 200 electors on his
nomination papers. No candidate will be allowed to hold
more than one mandate at a time. The renewal or grant-
ing of franchises to public utilitj' companies will not be per-
mitted without a referendum and provision is made for the
creation of a franchise bureau. Borrowing powers are
limited to $100,000 unless bigger loans are approved by the
proprietors. The bill also provides for a triennial compul-
sory census for municipal and school purposes.
Change in Road Policy
An important change in the good roads policy of the
government was put through the legislature on February 18
by Hon. J. A. Tessier, Minister of Highways. The provincial
or main highways are maintained by the government who
collect half the cost from the municipalities affected, but the
roads in municipalities have been maintained by the local
authorities and they have been receiving a grant
from the government up to $400 per municipality,
irrespective of the mileage they have to maintain.
Under the new scheme the municipal roads will be classified
as regional or district roads, and the work of maintenance
will be undertaken by the provincial road department, the
municipalities being compelled to pay to the government a
contribution not exceeding fifty per cent, of the cost of the,
work done on such roads. The advantage of the new policy
is not only that the municipalities will be saved a lot of
money, but that the district roads, like the main highways,
will be maintained under the direction and control of the
provincial government, and thus uniformity be secured in im-
proved highways.
To Tax Under Bankruptcy Act
The provincial treasurer wants the province of Quebec
to get some revenue as a result of the Bankruptcy Act of the
last session of the Dominion parliament. In a bill and ac-
companying resolutions brought down on February 18 it is
provided that every transfer, sale or conveyance of immove-
able property, of a trustee or other authorized person, under
the provisions of the Act of the Parliament of Canada, 9-10,
George V., Chapter 36, the Bankruptcy Act, shall be sub-
ject to the payment by the acquirer of a duty pf two and
one-half per cent., for the benefit of His Majesty. Such duty
of two and one-half per cent, shall be collected by the sheriff
of the district and shall be calculated upon the amount stated
in the deed of sale, transfer or conveyance, provided that
such sum is greater than the amount of first hypothec upon
the immoveable sold, transferred or conveyed, and upon one-
half the value shown on the municipal valuation roll, if such
sum is not greater than such amount, or if there is no
hypothec. Nevertheless, if the amount mentioned in the deed
as aforesaid, although less than the amount of the first
hypothec, is greater than one-half of the municipal valua-
tion, the commission shall be calculated upon the amount
fixed by the said deed. Provision is made that those who
neglect to pay the tax shall be liable to a penalty equal to
February 25, 1921
MONETAEY TIMES
THE
WAWANESA
MUTUAL
INSURANCE COMPANY
Head Office
Wawanesa, Manitoba
Balance Sheet for the Year Ending
December 31, 1920
Receipts
Clash on hand December 31. 1919
Cash in Banl< December 31, 1919
i'remiiinis ...„
Assessments
Interest „ „
Expenditures
Agents' Commlsglon
Fire Inspection
rrlntlng and Stationery .
Postiige ...- -..^
Itebntes — _«-
Advertising —
Directors' Fees _.
OfOce Building
Oiflco Furniture
elllng Rxpensea
Fuel and I-lRlit
Audit. 1910
Audit. 1920
Legal Expenses
Freight and Express __
Telephone and Telegraph —
Taxes. Corernment and Local .
commissions on Collections
Iiisur iiii-e Premiums -
rirMklng
..» 190.S6
.. 92,117.31
... 94,623.30
.. 221,941.50
_ 14,670.94
423,S43.91
128,162.50
33,722.07
54,048.87
4,940.53
6,195.96
5.407.20
5,064.32
1,821.92
961.80
221.45
680.44
3,888 70
1.348.61
655.00
400.00
43.06
lax Stamps .
I loiv Loan Bonos y- —
.■.h In Hank December 31/1920 .
sh on iiand Deccnilier 31. 1920
Premium Notes on hand
Office Building and Lots .
Office Furniture
Less depreciation ,.
Premiums in Agents' hands
Dominion War Bonds _
Victory Loan Bonds
Accrued Interest
Cash in Banl( December 31, 1920 .
Cash on hand December 31, 1920 .
LIABILITIES
Reserve for unearned premiums
112.42
3,482.95
347.99
180.80
■ 5S6.00
385.00
160.66
1.947.18
45,646.00
121.196.51
2,179.28
4,671.78
472.89
9,000.00
2.900.00
2.614.90
1.196.51
2,179.28
Policies in Force - - - -
insurance in Force Dec. 31st. 1920
Increase in Business during 1920
40.749
$93,139,456
9.649.346
Tills is to certify that I have made an audit of the Books ^ind
.Vccounts of your Company for tiie year ending December 31st, 1920.
and that this Statement of Assets and Liabilities and of Receipts and
Expenditures is a true and correct one.
E. L. Mcdonald, Auditor.
Tills Company has no connection with The Western Mutual Fire
Insurance Association or any other combination of Mutual Com-
panies.
SECOND ANNUAL REPORT
December 31st. 1920
Union Fire and
Casualty
Company
WINNIPEG
MANITOBA
Authorized Capital
Subscribed Capital
Paid-up Capital
HmIkN
Slurk
Mortgages
Accrued Interest, Bonds and Mortgages ..
Real Estate -
Standard Banit
Cash Deposited B. C.
.\ccnunts Receivable -
siinrehoiders' Notes (Interest Included).
Veterans & Consumers Ltd.
Furniture and Fixtures
.stationery and Printed Matter
.U-welry
Premiums In cotir.se of collection
Agency Plant (New Territory)
Deposited in Court
$500,000.00
500,000.00
101,521.02
...(138,780.65
500.00
_ 11,250.00
_ 4.034.27
... 4.5S0.22
600.00
.. 19.793.55
_ 5,500.00
43.720.06
.. 7,636.34
100.00
.. 10.300.52
5,000.00
65.00
6.000.00
10.956.42
1,904.84
Total Assets
LIABILITIES
Reserve for Taxes
Reserve for Claims ^.
Reserve t^nenrned Premium .
Loan— Standard Bank
vVccounIs Payable
5.014.85
22.924.17
75.100.70
5.500.00
10.241.60
Paid-up Capital
Surplus
Paid-up Capital and Surplus
Audited and found correct : G. C. SHARP & CO.,
.January 28th, 1921. Auditors and Clifirtered .Vccountants.
ABSTRACT
1919 1920 Increase
Gross Premium Income 1198.621.75 $304,762.13 J106.140.38
AU other Income - —.. 8.006.09 8.793 .55 787.47
ToUl Income 167,419.17 216.002.56 48.583.39
Vssets 210,132.30 270,691.87 60.559.57
LlablUties _- 175.864.68 220.302.34 44.437.66
Paid-up CapiUl - 82.313.02 101.521.02 19,208.00
Surplus 34,267.62 50,389.53 16,121.91
Invested Assets - 115.824.79 150.530.65 34.705.86
J116.932.06 In Securities deposited with Provincial Government.
Officers and Directors
S. D. WORKS, President.
E. H.\M. Col. DAN McLEAN,
Vice-Presidenl. 2nd Vice-Presi
J. O. MELIN, Secretary-Treasurer
R. L. NicOLSON Howard Everett
John E. Burchard James Carrithers
Daniel Gi nn Fred Kennedy
THE MONETARY TIMES
Volume 68
double the amount of the exigible duty, recoverable by sum-
mai->' action before the courts.
Municipal Affairs
The report of the Department of Municipal Affairs pre-
sented to the legislature on January 22 states, in reference
to housing, that most of the municipalities hesitated to under-
take the building of dwellings under the act, owing to the
refusal of the federal authorities to accept the pi-ovisions of
the provincial statute passed last sessions regarding two-
storey buildings, one of which could be rented by the pro-
prietor. Twelve municipalities had undertaken the building
of dwellings, and it was believed others would follow their
example in the near future. During the year 66 municipal
loan by-laws, representing $13,904,200 were sanctioned by
the lieutenant-governor, and no less than 137 municipal by-
laws were disallowed. Twenty-five new municipalities were
created during the year, including two towns, 13 villages, and
10 rural municipalities. Nine annexations for municipal pur-
poses and 12 for electoral purposes were decreed by pro-
clamation, and the department organized the first elections of
mayor and councillors in 16 municipalities.
The amount placed at the disposal of the munici-
palities by the federal government for workmen's dwell-
ings through the province of Quebec was $6,949,255. Ad-
vances made to municipalities totalled 35, but the city of
Levis afterwards refused its loan. The total amount of the
grants made was $6,430,000.
The housing question came up also on February 8,
when a delegation of the Montreal Civic Progress League
asked that the government loan $20,000,000 to municipalities
for this purpose. Premier Ta«chereau expressed himself as
not in favor of the suggestion.
"Municipal Statistics," presented to the legislature on
February 8 by the provincial secretary, are for the year
1919. There are 74 counties in the province, comprising 913
parishes and 240 villages, and the cities and towns number
18 and 84 respectively. Population is estimated at 2,486,500,
1,185,898 being rural and 1,300,602 urban.
To Control Liquor Business
One of the contentious measures was that relating to the
sale of liquor, which was read the third time on February
17. It provides for the taking over of the business by the
government. Another important measure, introduced by
Peter Bercovitch as a private measure, is that to control
rentals; this is the result of a strong feeling on the part
of tenants in Montreal.
The Anglo-American Trust Co. is applying for an act
amending its charter to extend the time fixed for the com-
Tnencement of business.
BANK OF HAMILTON BUYS SITE
The Bank of Hamilton has purchased from the ex-
ecutors of the late Dowager Countess of Albermarle, the
principal portion of the southwest corner of King and James
Streets, Hamilton. The deal involves the property on
which the head office building of the Bank of Hamilton
stands, and the land occupied by the Osborne Chambers.
The site of the head office of the bank has until the present
time been held under lease. Some time ago the Cumberland
Land Co., closely identified with the Bank of Hamilton,
bought the leases of the Osborne Chambers from the estate,
and the present transaction gives the bank the freehold of
this property. The sum of $175,000 is involved in the deal, for
which the bank secures property with 132 feet frontage, 24
feet on King Street and 108 feet on James Street.
Officials of the bank intimated that extensive building
operations are not under consideration at the present time.
Eventually the Osborne Chambers will be torn down and an
addition to the present imposing office building occupied by
the bank erected.
SASKATCHEWAN MORTGAGE AND TRUST
The shareholders' annual general meeting of the Sas-
katchewan Mortgage and Tnist Corporation, Limited, was
held in Regina on February 17. The company appears to have
had the best year in its history, showing gross profits of
over $80,000. Of this amount, $19,500 was used for manage-
ment and expenses of operation, $48,000 paid to the share-
holders by way of dividends, provision was made for income
tax for 1919 and 1920, and the balance in excess of $10,000
was carried forward in profit and loss account.
The shareholders elected the following directors for the
ensuing year: J. F. Bole, A. E. Whitmore, F. N. Darke, S. C.
Burton, F. J. James, A. W. McGregor, R. M. Johnson, E. E.
Poole, F. G. England and A. G. Rawlinson. At a subsequent
meeting of the directors, J. F. Bole was re-elected president;
A. E. Whitmore, vice-president; C. V. Smith, general man-
ager, and R. A. Kirkwood, assistant manager and secretary.
LONDON LIFE HAS CREDITABLE RECORD
Consistent with the record of most of our other Cana-
dian life companies is the report of the London Life Insur-
ance Company, which was given in these columns last week.
New insurance issued in 1920 amounted to $31,826,696, being
an increase of $7,007,920 over the previous year. Income
amounted to $4,217,693, compared with $3,452,293 in 1919.
$1,666,122 in 1915 and $297,249 in 1900.
Having commenced business forty-six years ago, the
company has made splendid progress, and more particularly
in recent years. Since 1915 the insurance in force has in-
creased $61,779,747 to $96,600,075, while the amount of in-
surance issued shows an increase of $20,766 184 over the
same period.
At the same time, the company's position has not been
in any way impaired. In five years assets have increased
$7,029,760 "to $13,105,083, while "the surplus has advanced to
$1,453,455 from $753,625. The reserves are over $850,000 in
excess of the government standard.
ALBERTA WORKMEN'S COMPENSATION RESULTS
The Alberta Workmen's Compensation Board issues the
following 'summary for the year ended December 81^,
1920:—
Number of employees within the scope of the act . . 2,698
Number of accidents reported 6,418
Number of claims disposed of by payment of com-
pensation 3,089
Number of claims disposed of without payment of
compensation 545
Number of accidents reported and disposed of, for
which no applications for compensation were
received 1,681
Number of accidents reported and disposed of by
payment of medical aid only 187
Number of claims on which further payments have
to be made 286
Number of accfdents reported still under considera-
tion, on which no payments have been made . . 1,826
Total amount of assessments levied, 1920 $443,126
Total amount of assessments collected, 1920 (in-
cludes payments made on account of outstand-
ings as at 31st December, 1919) $445,310
Total expenditure re fatal accidents:
Compensation paid $19,576
Funeral expenses only 2,157
$ 21,733
Total amount of expenditure in connection with
non-fatal accidents $173,231
February 25, 1921
THE MONETARY TIMES
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiii iiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiui iiiiiiiiiiiiHiiiiiiiiiuiiiiiiiiiiiiii iiiiiii iini II iiiiiiiii I NiMiiiiii Ml I I II I iiiiiiiiiiiiiiiiittniiiHiiiiiiiinniiii|
I The London Mutual Fire Insurance |
I Company |
I Directors' Report presented at the Annual General Meeting, February 19th, 1921 |
= Your Directors submit lierewith the Sixly-Brst Aimual Statement of tlie Company's affairs, showing Assets and Liabilities as at December 31st =
M IJist, and Inccjnie and Expenditure accounts for the year 1920; ^.
^ The Company's business has, during the course of the past year, made wonderful progress, and the results of the year's trading have been very p
M satisfactory. p
m The tjJross Premium Income, less cancellations and rebates, was $975,395.79. being an increase of $270,386.25 over the previous year. The net pre- g
g mium income, after deducting reinsurance premiums, was $625,001.76, an increase of $99,817.71. The gross losses were $407,696.63. being 41.8'"<j of the g
p gi'oss premiums. The net losses were $258,319.33, being 41.3% of the net premium Income. ^
p The Bonds and Debtintures owned by tlie Company are sIkihu In the Statement at their book value of $480,438.02, an Increase of $109,964.39 over p
m the figures shown at the end of 1919. The valuation of these securities on tlie basis of the values authorized by tlie Insurance Department at the J
g 31st of December. 1920. is $27,765.81 greater than the value shown In the Statement. m
g The Trading Profit for the year, after deducting losses paid and estimated, and expenses paid, from premiums written, interesi and oiher in- m
S come, amounted to $135,943.57 and after adding $86,853.44 to reinsurance reserve, and $3,615.82 to Government Tax Reserve, and writing oft the fol J
M lowinj: items : Permanent Improvements to Head Office bulldliig made during Ihe year, amounting to $9.M1.14, Real Estate account $2,736.97, Securi- ^
s ties $3,338.21. writing off the whole amount spent on office furniture, insurance iilans and automobiles amounting to $11,982.92. an<l providing $2,750.00 ^
m for lihiilcml. the sum of $15,575.07 was added to the Cash Surplus, making a Cash Surplus to Poiicyhoiders of $222,950.20. to which must be added the p
g .■oiitiiiKiiit portion of premium notes, amounting to $138.82777. making a total surplus to Policyholders of $361,777.97. m
= Yiiur Directors wish to place on record their appreciation of tlio ioyaily to the Company .shown by its Agents, and of the efficient service ren- g
1 iliifd hy the field and office staffs, which have produced sucli excellent results. g
= All of wiilch Is respectfully submitted. ^ \ H <'. CAHSO.N. President. ^
g Febrimry 12th, 1921. B
I BALANCE SHEET DECEMBER Slst, 1920 |
i ASSETS LIABILITIES 1
m Bonds and Debentures $I80.I3S.0-' I'nadjusied losses $14,031.70 ^
g Mortgages Receivable 10,400.00 Covernnient Taxes Accruing 15.000.00 g
H Due by Reinsurance a8,69!.49 Held on account of Reinsurance 264,.5fl9.8l =
p Interest Accrued 6.773.11 Sundry Accounts Payable ' 846.94 ^
M Agents' Balances 92,347 66 Provision for Agents' Bonuses . 3,500.00 g
m Sundry Accounts Recen.ihle 3.932.80 $297,948.45 g
M Cash on Hand and on Deposit „ _ 110,280.09 Reserve for Reinsurance. Full Gnvernmeut Standard 421.428.65 ^
m ' $792,863.17 Provision for Dividend 2.750.00 a
m Office Furniture. Goad's Plans, and Au- Capital Stock Paid Up _ - - $ 19,250.00 g
m toraohilcs (Toronto and Montreal) ..$31,499.41 Surplus Account - 203.700.20 g
H Loss Reserve for Depreciation 21,499.41 — '■ B
m $10,000.00 Cash Surplus to Policyholders $222,950.20 =
^ Real Estate and Buildings __ $168,576.22 Contingent Portion of Cnassessed Premium Notes... 138,827.77 _
= Less Reserve for Depreciation ...._ _ 9.076.22 —^361,777.07 g
1 $157,500.00 ^ — — T"^ 1
^ Less Mortgages and Interest Accrued.. . 15.28.5.87 ^-- -" ' =
S 112.214.13 ^^ — -— ""^ m
m 152.214.13 ——"^ m
g Contingent Portion Premium Notes •138.827.77 g
1 $1,083,905.07 $1.083,905.07 g
g 'In addition to tiic above there is on hand SS3.346.85, being portion of J
^ Premium Notes subject to assessment during tlie next two years. =
1 INCOME AND EXPENDITURE ACCOUNT FOR YEAR ENDING DECEMBER 31. 1920 1
To Losses $407,696.63
J..ess Salvage and Reinsurance Recovered .. 149.377.30
•— $258,319.33
To Commissions, Agency and Management Expense, etc 255,252.82
To Amount written off Office Furniture, Goad's Plan, Auto-
mobiles and Real Estate _ 18,108.10
To Improvements to Head Office Building 9,011.14
To Increase In Reinsurance Reserve -.-. 86.853.44
To Balance carried to Surplus Account 18.325.07
Gross Premiums $1,103,170.60
Less Cancellations and Rebates $128,074.81
Less Reinsurance Premiums 350,3^.03
478,468.84
By Income from Interest, Dividends and Rent $20,791.54
By Sundry Income -
$625.00<.76 m
20,898.14 m
$645,899.90
BONDS AND DEBENTURES OWNED BY THE COMPANY
On Hand at December 31. 1919
liominion Government Securities —
.Municipal Debentures — —
Loan Company Debentures — ._ _
Industrial Debentures -
Canadlnn Railway Debentures ..
Purchased During 1920
Ciiiiadlan Niprthern Ontario R.iilwav ( |).imirii..ii Goaranleel
Canadian Northern Railway Co. (.Manitoba Guarantee)
Canadian Nnitliern Pacific Railway (British Columbia Guarantee)-
Canadlan Nortiiern Western Railway (Alberta Guarantee)
Grand Trimk Pacific Railway _ . -... — -
$645,899.90 m
Par Value
$72,950.00
Book Value
$72,950.00
107,898.33
96,0M.00
36,000.00
40,611.28
167.140.33
$92,466.62
12.166.68
12,653.33
12,166.66
61,722.00
36,000.00
i%
4%%
4^%
4%
28,550.30
127.588.03
1961
1930
1950
1942
1955
$361,152.33
$54,568.87
9.918.27
9,331.32
9.339.12
36.128.11
The valuation given by the Insurance Department on the above Bonds is $27,765.81 more tlian the book value. -
CERTIFICATE
We have audited tlie books of the London Mutual Fire Insurance Company of Canada for the year ending December 31, 1920. We find the books
m pany.
_ We certify that the annexed Balance Slieet is In accord with the hjoks and In our opinion is a full and fair statement of tlie position of the ^
m Company on that date. EDWARDS. MORGAN & CO.. Chartered Accountants. =
m February 4. 1921. **^ g
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30
THE MONETARY TIMES
Volume 66.
RAILROADS LOST MONEY IN 1919
Figures for Year Ended June 30, 1919, Show a Net Corporate
Loss — Revenue Increase was More than Offset
by Increase in Expenses
THE annual report on railway statistics" for the year ended
June 30, 1919, the first to be compiled and published by
the Dominion Bureau of Statistics, shows that the railroads
carried 8.5 per cent, less freight than in 1918, or 116,699,572
tons, against 127,543,687, and 2.7 per cent, fewer passengers,
or 43,754,194, against 44,948,638, but, due to the increased
freight and passenger rates, which were raised in March,
and again in August, 1918, there was an increase in operating
earnings of $52,756,751, or $382,976,901, against $330,220,150.
This increase was more than offset by an increase in operat-
ing expenses of $67,911,073, or $341,866,09, against $273,-
955,436, making the net operating revenue $41,110,392,
against $56,264,714, a decrease of $15,154,322 This net
opei'ating revenue was increased by miscellaneous earnings
to $61,582,832. Taxes amounted to $5,316,714, and rents,
lease of road, interest on funded debt, etc., amounted to $57,-
530,798. leaving a net corporate loss of $1,264,680, against
a net corporate income of $18,328,229 in 1918.
Big Increase in Expenses
The operating ratio increased from 82.96 per cent, in
1918 to 89.27 per cent, in 1919. Maintenance of way and
structures was $69,034,242, against $51,614,857, and mainten-
ance of equipment was $78,397,270, against $57,304,234.
Transportation expenses were $170,382,034, against $145,-
107,396. Wages included in the above were, for maintenance
of road and equipment and construction, $93,308,553, against
$64,432,548. Trainmen, yard, $11,353,454, against $8,665,250,
and trainmen, road, $37,556,658, against $31,052,421. Total
wages, all departments, were $208,939,995, against $152,274,-
953. There was a decrease in fuel consumption of 9,451,018
tons, costing $52,214,897, against 10,173,344 tons, costing
$52,630,430 in 1918. The ties used for maintenance were
11,856.373, costing $9,369,519, against 7,785,831, costing
$4,701,312.
Volume of Business Decreased
Pasengers carried one mile were 3,074,664,369, against
3,190,025,682. Tons handled one mile were 27,724,397,202,
against 31,029,072,279. Average receipts per passenger per
mile ^\%s 2.557 cents, against 2.122, and the average receipts,
per ton per mile was $.962, against $.736. The average load
increased from 23.09 tons per car in 1918 to 23.46 tons, but
the average haul decreased from 243 miles to 238 miles.
Capital and Assets
The capital was $2,009,209,510, being made up of stocks
$878,101,113, debenture stock (C.P.R.) $216,284,882, and
funded debt $914,823,515, an increase of $500,500 in stocks
and $8,828,516 in funded debt.
The miles of single track was practically the same,
38,896, against 38,879, and the total miles of all track was
60,616, against 50,640. Freight car miles were: Loaded, 1,181-
758,126; empty, 497,882,365; passenger train car miles, 297,-
275,014. Train miles were: Freight, 55,034,882; passenger,
41,048,124; mixed, 7,652,411; special, 97,418; non-revenue,
4,159,658. Total locomotive miles, 136,926,164. Number of
locomotives increased from 5,756 to 5,879, passenger cars
from 6,376 to 6,510, freight cars from 209,026 to 217,258.
Results by Roads
From operation: The gross earnings of Canadian Pacific
was 8162,846,470; expenses, $130,416,994; net earnings, $32,-
429,475.
Grand Trunk was — Gross earnings, $66,429,147; expenses,
$57,005,328; net earnings, $9,423,819.
Canadian Northern — Gross earnings, $48,238,461; ex-
penses. $49,716,044; deficit, $1,477,582.
Intercolonial — Gross earnings, $26,977,807; expenses,
$31,489,685; deficit, $4,511,878.
All other government operated lines — Gross earnings,
$11,706,790; expenses, $13,809,870; deficit, $2,103,080.
Grand Trunk Pacific and branch lines — Gross earnings,
$9,625,769; expenses, $14,999,288; deficit, $5,373,518.
The total deductions from gross corporate income, other
than taxes, for these roads were: —
Canadian Pacific — Interest on funded debt, $597,125;
total, $3,087,364; net corporate income, $36,977,263.
Grand Trunk— Interest on funded debt, $7,621,300; total
deductions, $11,986,476; corporate loss, $1,020,986.
Canadian Northern — Interest on funded debt, $11,445,-
813; total deductions, $19,466,307; corporate loss, $20,193,986.
Intercolonial — No interest; total deduction, $67,810; cor-
porate loss, $2,292,102.
All other government operated lines — No interest; total
deductions, $842,238; corporate loss, $4,610,118.
Grand Trunk Pacific and branch lines — Interest on
funded debt, $6,368,084; total deductions, $10,629,427; cor-
porate loss, $11,079,612.
For all roads there was a total net corporate income of
$45,019,298 and a total corporate loss of $43,809,574.
TRANSPORTATION FACILITIES FOR RED DEER
The entrance of the Canadian National Railway to Red
Deer, Alta., was one of the principal events in 1920 for the
municipality. In his comprehensive survey of the local situa-
tion for last year. President Welliver, of the Board of Trade,
makes special mention of the fact. For the past seven years
the board has shown one continual progressive action to keep
the C.N.R. officials apprised of their promises, and kept con-
tinually commending them to action whenever apathy on
the project was evident. Wholesalers and coal dealers of the
municipality will benefit greatly by the movement, through
the additional shipping facilities and better freight classifi-
cation, and the position of Red Deer will be considerably
improved as an industrial centre. The road will not be
operated until the spring, for ballast must first be procured.
POLICY-HOLDERS MUTUAL LIFE
The general meeting of the Policy-Holders' Mutual Life
Insurance Co. was held in Toronto on February 2nd. The
largest amount of business heretofore written was that of
the year 1919, but the volume of business of 1920 was two
and one-third times that of 1919. The percentage of new
business retained was 81.17. The increase in policyholders'
reserve was 40 per cent. ; increase in general assets of the
company 80 per cent.
The officers elected were as follows : Colonel A. C. Pratt,
who has been vice-president since the organization of the
company, was elected president; J. M. Faircloth, vice-presi-
dent; A. M. Featherston, managing director; A. W. Briggs,
K.C., solicitor, and Dr. W. S. Verrall, medical director.
NEW YORK LIFE INSURANCE CO.
The largest annual business in its history is reported
by the New York Life Insurance Co. in its statement just
issued. The year was a record one with respect to new in-
surance, amounts paid to policyholders, as per contracts, and
amounts paid in dividends, which are returned in excess of
the guarantees of the contracts. The amount paid to living
policyholders was more than double the amount paid on
death and disability claims. The total payments to policy-
holders exceeded $114,000,000, and the total new insurance
was nearly $700,000,000. The company's balance-sheet shows
five classes of securities, in each of which the investment ex-
ceeds $100,000,000, namely, mortgage loans, policy loans,
Liberty bonds and Victory notes, local government obligations
and railroad bonds.
February 25, 1921 THEMONETARY TIMES 31
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I Provincial Paper Mills Limited |
Report to Shareholders at the Annual Meeting Held on Wednesday, February 16th, 1921
TO THE SHAEEHOLDERS:
Your Directors have pleasure in submitting herewith statement for the Fiscal Year ending December 31st, 1920.
Please remember when comparing this statement with that of December 31st, 1919, issued by the Provincial Paper Mills Co. Limited, that the
present statement includes the pulp mill formerly operated by the Port Arthur Pulp and Paper Co. Ltd., and which was acquired as result of re-
iiisanizatlon the first of the year.
During the year there was an abnormal demand for the product of your mills, enabling all plants to run to capacity, and this, with the high
values, made our total sales reach the high record of $7,658,176.66.
" \Vc liave pursued the policy of making our product of a quality and at a price which compels Canadians to buy in Canada. It would be Im-
possible at this time to say definitely what our business will be for the coming year, but intimations from Catalogue and Periodical Publishers would
Indicate an increased demand. Present commitments, while less than at the corresponding period of last year, are quite satisfactory.
Wlien organizing the Company, provision was made for financing future extensions by authorizing $3,000,000, twenly-year, 6% Bonds. $200,000
of iliese Bonds have been exchanged for a like amount of Bonds that were outstanding against the Port Arthur Pulp and Paper Company, Limited,
thus enabling us to discharge the prior mortgage on the Port Arthur mill. $305,000 of the Bonds were sold for cash, the amount being Invested in
Can.idian ciovernment Victory Bonds for use when further building operations are commenced.
During the year we received from the Ontario Government the rights for 21 years to cut pulpwood on an area containing over 1,300 square
mil.'^. Now that our supply of pulpwood Is assured, we are In position to proceed with our plans for the extensions at Port Arthur, which In-
chiU a Paper Mill. Submitted on behalf of the Directors, by
Toronto. February 16. 1921. I. H. WELDOX, President.
STATEMENT, DECEMBER 31st, 1920
ASSETS
Property and Plant
i;. , Kstate, Buildings and Equipments, etc $
Current Assets
Cash on hand and in Banks $315,166.91
Bills Receivable ~. 111,735.60
Accounts Receivable, Less Reserve for Bad Debts 811.600 12
Victorv Bonds (par value H03.500.00) 396.800.00
fjovernment De)>oslt on Timber Limits ._ 100,000.00
Invostmonis _ 55.7i0.0O
Other Assets
Inventory — Stock, Supplies, Paper, Pulpw
surance, etc
Partial payment on Undelivered Wood
LIABILITIES
Capital Stock
..$7,600,000.00
.. 4,100,000.00
Preferred— Authorized
Less Unissued ..
$2,400,000,00
700,000,00
$3,500,000,00
I
I
$1,700,000.00
Mortgage Debts
First Mortgage 6^ Serial, Due 1921-1922 ? 60,000.00
Bonds, 20-Y^ear, (f:'c. Due 1940 :
fsCr.'*::*':"*":'*^"' 505.000,00
Current Liabilities
Accounts Payable, Including Accrued Wages and
Reserve for War Tax. Payable In 1921 $600,185.68
Accrued Dividends I-nclalnie<l 6.618,00
l%^/„ Dividend on Prolferred. $1,700,000, Payable
January 3, 1921 —••■■•■
lur- Dividend on Common, $3,500,000, Payable
" .lanuary 3. 1921 - - 52,500,00
1% Bonus on Common, $3,500,000, Payable January
a 1091 — 35,000.00
"' "^' $ 724,053.68
Other Liabilities
Reserve for Depreciation on 'Buildings and Plant $ "3,161.18
Balance Profit and I.,oss Account - e.t.i.4tiJ.iJ
29,750.00
«rrri:"T°i'ift^r.n'°" ".'i" «•'»«/<« 'ement of Assets and Liabilities corrcctlv sets forth the position of the affairs of the PROVINCIAL PAPER
1. ,H ,"™'"*'"' «"> "»« 31st day of December, 1920, as recorded in the books of account. All of our requirements as Auditors have been com-
Turonto, Ontario, .lanuary 26th, 1921,
(Signed) P. S
ROSS & SONS.
Chartered Accountants.
INCOME ACCOUNT FOR YEAR ENDING DECEMBER 31st, 1S20
Profits for Y^ear. after Allowing for War Tax, Payable 1921 _ ...- -
Interest and Dividends Received " -..
Less Interest paid out
Less Reserve for Bad Debts _..^
Less Allowance foe Depreciation on Buildings and Plant
Less Preferred Dividends Paid and Authorized _
Le:
, Common Dividends Paid and Authorized
SURPLUS FOR Y'EAR ...
$1,248,140.06
28,236.93
$1,219,903.13
10,000.00
$1,209,903.13
200,000.00
$1,009,903.13
119,000.00
SS.10,903.13
257,500.00
Audited and verified:
Toronto, January 26th. 1921.
S Stock Transfer Agent
■iiiiiiiiiiiiiiiiiiiiiiiiniiiii!iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiii
OFFICERS AND BOARD OF DIRECTORS 1920
I II. \\'ELDON, President T. A. WELDON, Vi
S. F. DUNCAN, Secretary- Treasurer
DIRECTORS
S. F. DUNCAN S. B. JIONTtOE
ALEX. FASKEN A. B. COXXABLE
SIR CHARLES GORDON, K.C.B.E.
ROY.VL TRUST COMPANY, Toronto and Montreal Bankers : BANK OF MONTREAL, Toronto
iiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^^^^^^^
THE MONETARY TIMES
Volume 66.
SOURCE OF DOMINION REVENUE
An interesting analysis of Dominion revenue is published
in the current issue of the Bank of Commerce "Commercial
Letter." According to the preliminary statement of the Do-
minion government, the December revenues exceeded expen-
Revenue: Dominion of Canada
(Fiscal Years cndinp March)
ditures by $1,000,000. During the nine months ending De-
cember last, the excess of revenue over ordinary expenditures
was $91,000,000, and the capital expenditures were $32,270,-
316, as compared with $272,419,448 for the corresponding
nine months of the previous fiscal year. The revenue from
April 1 to December 31, 1920, exceeded the total of $312,900,-
000 for the whole of
the fiscal year end-
ing March, 1919,
and, if this level' is
maintained, the
total for the current
fiscal year will
reach $459,000,000.
The accompanying
graph reveals the
extent to which war
taxes (that is to
say, income and
business profits
taxes and those on
the sale of luxuries
and other articles)
have contributed to
the growth of the
revenue. These
taxes brought in
$100,000 in 1915,
and $104,000,000 for
the first nine months
of the current fiscal
year. During the
same period, there
have also been not-
able increases in
customs and other
sources of revenue.
LONDON MUTUAL FIRE INSURANCE CO.
The company's statement for 1920, presented at the an-
nual meeting on February 19, shows that gross premium
income, less cancellations and rebates, was $975,395, an in-
crease of $270,386 over the previous year. The net premium
income, after deducting reinsurance premiums, was $625,001,
an increase of $99,817. Gross losses were $407,696, being
41.8 per cent, of the gross premiums. The net losses were
$258,319, or 41.3 per cent, of the net premium income. The
bonds and debentures owned by the company are shown in
the statement at their book value of $480,438, an increase of
$109,964 over the figures shown at the end of 1919. The
valuation of these securities on the basis of the values
authorized by the insurance department at the 31st of Decem-
ber, 1920, is $27,765 greater than the value shown in the
statement.
The trading profit for the year, after deducting losses
paid and estimated, and expenses paid, from preuminis writ-
ten, interest and other income, amounted to $135,943, and
after adding $86,853 to reinsurance reserve, and $3,615 to
government tax reserve, and writing off the following items:
Permanent improvements to head office building made dur-
ing the year, amounting to $9,041 ; real estate account $2,736;
securities $3,338; writing off the whole amount spent on
office furniture, insurance plans and automobiles amounting
to $11,982; and providing $2,750 for dividend, the sum of
$15,575 was added to the cash surplus, making a cash sur-
plus to policyholders of $222,950 to which must be added the
contingent portion of premium notes, amounting to $138,827,
making a total surplus to policyholders of $361,777.
THE PRUDENTIAL'S GREATEST YEAR
The 1920 statement of the Prudential Insurance Company
of America shows that the total of new paid-for insurance
for the year was over $1,032,000,000, the largest amount of
paid-for insurance written on the lives of the public by the
company in any year in its history. Its net gain in insurance
in force was over $665,000,000, which is more than the total
insurance in force that the company had at the end of its
twenty-fifth year in business. This amount was almost
equally divided between the industrial and the ordinary de-
partments. The Prudential's net increase in assets in 1920
was over $88,000,000, which is greater than the total assets
accumulated when it had been in business twenty-eight years.
The Prudential is now second among the world's insur-
ance companies in the important items of insurance in force
and premium income. In 1920 it advanced from fifth to third
place in admitted assets. Its lapse rate last year was less
than jn 1919.
The total assets on December 31, 1920, were over $686,-
000.000. Its liabilities amounted to $655,000,000, which in-
clude its reser\-es of $623,000,000. Its surplus had increased
to $30,900,000. It bought $8,500,000 worth of Liberty bonds
during the year. It owns government bonds valued at $106,-
500,000, which total equals 15 per cent, of its admitted assets.
The average rate of return on government, municipal, rail-
road and miscellaneous bonds purchased during 1920 was
6.07 per cent., as compared with 5.28 per cent, in 1919.
The Toronto General Trusts Corporation and Charles W.
Kerr, barrister, have been granted probate of the will of
Mrs. Elizabeth Morse, widow of George D. Morse, who died
recently in Toi'onto, leaving an estate of $40,918.
The Oshawa, Opt., Board of Trade, dormant for many
months, is to be reorganized. At a meeting of the executive
on Februai-y 21 P. J. Bailes was elected president in place of
R. H. Mulch, resigned, and a meeting is to be held on March
4, to be addressed, probably by the Dominion Town Planning
Expert, Thos. Adams.
February 25, 1921
illlllllllllillll
THE MONETARY TIMES
IlllllllllllllllllllllllllllllllllllllllllllllllllllllllllllilllllllllilllllllllllllllllllllllllllllllllllllllllU^
ANNUAL MEETING OF
The Montreal City and District Savings Bank
Montreal, February 14th, 1921.
The Annual Meeting of the Montreal City & District Savings Bank was held at noon to-day.
The President, Honour&ble Raoul Dandurand, presided, and Mr. A. P. Lesper&nce, General Manager, acted
as Secretary.
The Annual Report and Statements were read to the Meeting and duly adopted, and a vote of thanks was
accorded the Directors, officers and employees of the Bank.
The old Board of Directors was unanimously re-elected, and at a subsequent meeting of the Board, Hon.
Raoul Dandurand was elected President, and Richard Bolton, Vice-President of the Bank, for the ensuing year.
To the Shareholders: Montreal, February 14th, 1921.
Gentlemen:
Your Directors have pleasure in presenting the Seventy-fourth Annu&l Report of the affairs of the Bank and
the result of its operations for the year ending December :Ust, 1920.
The net profits for the year were $247,286.39, and the balance brought forward from last year's Profit and
Loss Account was $280,222.27, making a total of $527,.508.66. From this amount have been paid four quar-
terly dividends to our' Shareholders a^nd .$4,250.00 has been contributed to various charitable and philanthropic
funds, leaving a balance at the credit of Profit and Loss Account of $323,449.34 to be carried forward to next
year.
A sum of $25,000 was voted during the year to our Montreal Universities, to be pa-id in the course of the
next five years.
As usual a frequent and thorough inspection of the books and assets of the Bank has been made during
the year.
The report of the Auditors and the Balance Sheet are herewith submitted.
R. DANDURAND, Prcsidenf.
Statement of the Affairs of the Montreal City and District Savings
Bank on the Slst December, 1920
ASSETS.
Cash on hand and in char-
tered banks $ 8,173,364.94
Dominion and Provincial
Government Bonds . . 12,941,563.80
City of Montreal and other
Municipal Bonds and
Debentures 14,570,060.10
Honds of School Munici-
palities 473,158.15
Other Bonds and Deben-
tures 1,519,511.89
Sundry Securities 224,000.00
Call and Short Loans, se-
cured by CollEterals 10,1 51. .■'.91.49
Charity Donation Fund,
invested in Municipal
Securities approved by
the Dominion Govern-
ment 180,000.00
Bank premises (Head Office
and sixteen branches) $ 900,000.00
Other Assets 129,714.87
$48,233,050.37
LIABILITIES.
To the Public:
Amount due Depositors . .
" " Receiver-
General
" Charity Dona-
tion Fund
" "Open A c-
counts
$45,448,298.76
94,243.02
180,000.00
368,204.12
$46,090,745.90
1,029,714.87
$49,262,765.24
To the Shareholders:
Cr.'pital Stock (Amount
subscribed $2,000,000)
paid up $ 1,498,570.00
Reserve Fund 1,350,000.00
Profit and Loss Account . 323,449.34
On behalf of the Board,
R. DANDURAND, President.
3,172,019.514
$49,262,765.24
A. P. LESPERANCE,, General Manager.
AUDITORS' REPORT.
Having obtained all the information and explanations we have required, and having satisfied ourselves
of the correctness of the Cash Balances, and examined the Securities held &gamst the Money at Cal and Short
Notice, and those representing the investments of the Bank, and having exammed the foregoing Balance bheet
and compared it with the Books at the Head Office, and with the Certified Returns from the Branches, we are
of opinion that the transactions of the Bank have been within its powers, a.nd that the Balance Sheet is properly
drawn up so as to exhibit a true and correct view of the state of the Bank s affairs as shown by the Books
A. GINQ-MARS, C.A. . ^,,,.„,,..
Montreal, Fobruarv 7th, 1921. C. A. SHANNON, L.LA. |
447
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THE MONETARY TIMES
Volume 66.
SECURITY LOAN AND SAVINGS
Profits of the Security Loan and Savings Co., St.
Catharines, Ont., for 1920, amounted to $43,591 compared
with $47,357 in 1919, and $47,021 in 1918. Dividends took
$31,938, and after adding $15,000 to reserve there was a bal-
ance of $2,390, compared with $5,737 brought forward.
A feature of the balance sheet was the increase in de-
posits from $345,714 to $421,326, while debentures decreased
from $101,264 to $84,465.
NEW TORONTO STOCK BROKERAGE COMPANY
Mara, McCarthy Co., Ltd., a new Toronto stock exchange
house, has purchased a seat on the Toronto Stock Ex-
change, and W. Harold Mara, one of the members, will be
proposed as a member of the exchange to represent the firm.
The seat was purchased in December last, by Stuart B. Play-
fair from P. J. Stewart, and has been held since then for
Mr. Mara. Mr. Mara is at present a member of the firm of
Michie, Mara and Co., of Montreal. His partner, Leigh Mc-
Carthy, is a son of Judge McCarthy, of Orangeville, Ont.,
and was formerly assistant general manager of the Northern
Crown Bank at Winnipeg. On his return from overseas, he
joined the Royal Bank of Canada, and has lately been super-
visor of Ontario branches.
ELECTIONS TO STOCK EXCHANGE MEMBERSHIPS
Toronto Stock Exchange on February 15 elected to mem-
bership E. V. Wright, of Hamilton, of the new firm of Wright
and Coleman. Mr. Wright was a member of the firm of
Morris and Wright, which was dissolved by mutual consent
at the middle of Janu&ry. Robert S. Morris, the other part-
ner of the firm, was for years a member of the Toronto Ex-
change, and the seat is now transferred to Mr. Wright. H.
P. Coleman, the other partner of the new firm, was until re-
cently with Tomenson, Forwood and Co. of Toronto.
Another change of the day was the election to member-
ship in the Montreal exchange of Dixon E. How, of Dun-
canson. How and Co., who are also members of the Toronto
exchange. Johnson and Ward, of Montreal, who co-operate
closely with Duncanson, How and Co., were recently elected
members of the Toronto exchange.
NORTH OF SCOTLAND CANADIAN MORTGAGE
There has been a revival of demand for mortgage loans,
and at satisfactory rates, according to the annual report of
the North of Scotland Canadian Mortgage Co., Ltd., and the
amount so lent by the company increased during the year
by over £98,000 to £1,743,395.
The company has its head oflice in Aberdeen, Scotland,
and receives all of its funds there, but its loans are made
largely within the Dominion. Income in Canada last year
amounted to £138,333, compared with £131,706 in 1919. In
addition a profit of £15,436 was made on exchange, as com-
pared with only £2,169 previously. Notwithstanding these
favorable changes, however, the net income amounted to
only £46,263, compared with £44,552 in 1919, the small in-
crease being the result of the larger expenses, and of the
provision of £14,589 for unassessed war taxes in Canada.
The company's reserve fund was increased £5,000 during
the year to £380,000, while the capital was unchanged at
£276,000. Osier, Hammond and Nanton, Winnipeg, are the
general managers for the Dominion, while the Canadian
advising board also consists of F. L. Patton, assistant general
manager of the Dominion Bank, Winnipeg; Sir E. B. Osier,
of Osier and Hammond, Toronto, and Hon. Wm. Hespeler,
late speaker of the legislature of the v^ovince of Manitoba.
SOME SICKNESS AND ACCIDENT PAYMENTS
Regarding its payments to policyholders in 1920, the
Dominion of Canada Guarantee and Accident Co. says: —
"Fifteen of these claims were for fatal accidents on
which the company paid in cash the sum of $45,000, with a
further liability amounting to $8,000 under gold bond coupons
which remain to be redeemed. One of these claims was for
$15,000. The man was killed seven months after the issue
of the policy and the company had received one premium!
Another was for $1,600. The man was killed eleven weeks
after the issue of the policy, and in this case also the com-
pany had received one premium. A third was for $1,850 under
a sixty days' accident ticket, for which the company had
received a premium of $7.50.
"2,385 of the claims paid during the year were for sick-
ness, and out of the total num.ber of accident and sickness
claims paid during the year, 1,776 were under policies which
had been in force for the average period of one year, the
indemnity paid on these amounting to $102,335.96."
CANADIAN GENERAL ACCOUNTANTS' ASSOCIATION
The proposition to admit women to the examinations for
certifitates of the Canadian General Accountants' Associa-
tion was voted down at the annual meeting of that body held
in Montreal on February 14. The vote was a close one, the
nays winning by seventeen to fourteen. A large number of
the members present, however, did not vote one way or the
other.
The question of certificating women accountants was in-
troduced by A. J. M. Petrie, retiring secretary-treasurer of
the association, by the reading of a suggestion from a cor-
respondent of Toronto, H. K. S. Hemming, championing the
cause of women accountants. "Women have naturally com-
petent accounting ability," said Mr. Hemming. "I venture
to say that most business men will agree with me that
women make most efficient and capable head bookkeepers.
To-day, women have entered every field of endeavor, "and
in none are they making better success than as a-ccountants
and financial clerks."
HIGHER RATES FOR SICKNESS INSURANCE
Action taken during the year 1920 by most of the com-
panies in raising sickness insurance rates places this busi-
ness upon a more satisfactory basis. Referring to this and
other developments during the year, John A. Jessup, man-
ager of the casualty department of the Royal Exchange As-
surance, said to The Monetary Times: —
"In the early part of tTiis year the companies, recognizing
that the rates for this class of insurance during the past
five years have been inadequate, agreed, with one or two
exceptions, to increase the premium charge and adopt a
standard form. This undoubtedly is a step in the right
direction, and in the face of experience is perfectly justified,
and the agreement reached to my mind reflects credit upon
the Canadian managers of these companies, inasmuch as
the same scheme failed to materialize in the United States,
although brought forward by the United States Conference
for acceptance by its members.
"The step now taken opens the door to the adoption of a
standard form of accident policy, which I sincerely hope will
be an accomplished fact in the not far distant future, coupled
with an agreement regulating commissions to be paid for
this class of business.
"A summary of the casualty business transacted in
Canada would indicate that it is not a paying proposition
for the companies, and it is clear that something must be
done to effect a healthy condition, and one of the points
which should be given serious consideration is the acquisition
cost, which is undoubtedly too high at the present time."
February 25, 1921
THE MONETAKY TIMES
DEBENTURES FOR SALE
CITY OF TRAIL, B.C.
Sealed tenders, marked "Tender on Debentures," will be
received by the undersigned up to 8 p.m. on Monday,
March 7th, 1921, for $37,000 7% 20-years straight-term
waterworks debentures. Denomination, $500.00. Interest pay-
able semi-annually. Principal and interest payable in Trail,
Toronto or New York, at option of holder. Interest coupons
WM. E. B. MONYPENNY,
415 City Clerk.
mtUMHELLER MUNICIPAL HOSPITAL BOARD No. 3
Sealed tenders will be received up to and including
March 26th next by the Drumheller Municipal Board Num-
ber 3 for the purchase of Twenty-eight thousand doll&rs
{ $28,000 twenty-year seven per cent. Hospital Debentures.
Repayable in equal annual instalments of Principal and In-
terest in total.
The highest or any tender not necessarily accepted.
For further informa'tion write
S. P. WILLIAMS,
Secretary-Treasurer,
40ij Drumheller.
Condensed Advertisements
Positions Wanted/- :lc per word i M other condensed advertisements
*c. per word. .Minimunn charge for any condensed advertisement, 65c
ler insertion. All condensed advertisements must conform to usual
'tyle. Condensed advertisements, on account of the very low rates
harried for them, are payable in advance : 50 i>er cent, extra if charged.
WANTED.— By Established Brokers— Toronto General
Agency for British fire company. Can guarantee good pre-
mium income first year. Box 393, Monetary Times, Toronto.
SECRETARY-TREASURER of large company in British
Columbia desires connection in similar capacity with pro-
gressive firm in Ontario, Hamilton preferred. First-class
accountant, with excellent credentials.. Prepared to go east
immediately for interview for any legitimate proposition.
Apply by wire or letter to H. Anscomb, 1921 Government
Street Victoria, B.C. 441
YOU M.\Y NEED a man with organizing experience
and ability who has a wide acquaintance throughout Western
Canada, a man who can handle a campaign of direct or in-
direct publicity. One who has established sources of infor-
mation for a useful statistical and news service or special
reports on Western affairs. Write Box 395, Monetary Times,
Toronto.
/^OMPANY controlling large volume
^-^ of Insurance and well represented
all over the West, requires additional
general agencies for Fire, Casualty and
Hail Insurance Companies in Western
Provinces.
Apply Box 385, Monetary Times. Toronto,
or Box 502 Monetarxi Times,
1206 McArthur Building, Winnipeg.
The Equitable Trust
Company
HEAD OFFICE: STERLl.NG BANK BLDG., WINNIPEG
Capital Authorizeil Capital Subscribed Capital Paid Up
$2,000,000 09 $1,039,300.00 $570,500.00
Reserve and Surplus Assets Under Administration
$79,529.00 $1,140,871.00
EXTRACTS FROM THE DIRECTORS' REPORT
"Your DlrCftors liave pleasure in calling your attention to the fact
that the profits for the year amount to t31.Sll.39, being nearly 6% cf
the paid-up capital of the Company, and which has been disposed of
as set out in the Balance Sheet.
"The general financial position of the Company has improved very
materially during the current year. A great deal of honest effort has
been put forth on the part of the Directors and Management to place
the Company in a stronger and better condition, and your Officers and
Directors are highly pleased with the results."
BALANCE SHEET AS AT JANUARY 31, 1921
COMPANY'S ASSETS
..5 8,567.57
7,000.85
5,367.22
Cash —
On hand
Bank of Hamilton
Bills and Accounts Receivable -
Bills
Accounts
Advances to Estates
Dominion of Canada War Bonds ($10,250.00)
Mortgages and Agreements —
rriiicipal and Interest due and accrued
Stocks and Debentures —
K'luitable Securities Company, Limited:
193 Shares of JIOO.OO each $ 49,300.00
Debentures (secured by Trust Deed).. 151,989.50
Furniture and Equipment
20,935.61
9,346.95
TRUST ASSETS
Bant* of Hamilton
DomhaioD of Canada War Bonds ($17,000.00)..
AGENCY ASSETS
Estimated Value of Assets Held
201,289.50
4,500.00
%
676,578.37
i
r
5,591.36
17,183.73
22.775.31
$1,140,871.71
COMPANY'S LIABILITIES
Accounts Payable - t
Savings Deposits (including accrued interest)
Capital —
Authorised— 20,000 Shares of JlOO.OO each $2,000,000.00
Subscribed 1,039,300.00
Less amount unpaid I6S.832.52
General Reserve — —
Surplus - -
570,467.48
50,000.00
29,529.39
TRUST LIABILITIES
Sundry Amounts Due Clients — _
AGENCY LIABILITIES
To the Shareholders, The Equitable Trust Company, Winnipeg:
We have examined tlie books and accounts of The Equitable Trust
Company for the period ended 31st January, 1921, and we report to thq
Shareholders that we have obtained all the information and explana-
tions we have required and that, In our opinion, the above Balance
Sheet Is properly drawn up, so as to exhibit a true and correct view
of the state of the Company's affairs at 31st January, 1921, according
to the best of our Information and the explanations given to us and
as shown by the books of the Company.
Winnipeg, 10th February, 1921.
GEORGE A. TOUCHE & COMPANY.
Chartered Accountants,
AUDITORS.
ARTHUR CONGDON, Vice-
President.
J. T. HAIG. Vice-President
DR. J. N. HUTCHINSON,
Director.
OFFICERS AND DIRECTORS
E. E. HALL, President
W. P. RILEY, Diit.jtor.
0. S. CLKF.-^TAD, Secy.-Trcas,
L. B. BILT.YARD, Asst. Secy.
W. L. PAIiKI.su, Director.
F. S. HARSTOXE. Director.
433
THE MONETARY TIMES
Volume 66.
MUTUAL FIRE UNDERWRITERS OF ONTARIO
PROPOSES HUGE GOVERNMENT HOUSING LOAN
Convention Held This Week in Toronto — W. A. Ualbraith,
T. J. Harkness, T. R. Mayberry, E. P. Heaton, V. Evan
Gray and G. L. Miller are Chief Speakers
THE annual meeting of the Mutual Fire Underwriters'
Association of Ontario was held in Toronto, February
22 and 23. In an address entitled, "What is the Objective of
the Association?" T. J. Harkness, Owen Sound, recommended
that the association urge the provincial legislature to enact
legislation compelling farmers to equip their b;rns with
lightning rods. Col. T. R. Mayberry, Ingersoll, dealt at some
length with regulations respecting gasoline engines and the
insuring of automobiles. In his annual address, W. A. Gal-
braith, lona, referred to the past year as one of th; best in
the history of the association.
Fire Prevention Work
Provincial Fire Marshal E. P. Heaton stated that, while
a province-wide fire prevention educational campaign had
been the means of reducing the number of fires during the
past two or three years, he predicted still greater results in
the next two or three years. He stated that much of the fire
waste held in check was attributable to care exercised by
officials of fire insui'ance companies in underwriting risks.
Referring to the numerous fires investigated by the depart-
ment during the past year, Mr. Heaton asserted that the
decisions rendered by the courts in a few instances had not
been satisfactory to the department over which he presides.
"I must confess that on two occasions last week," he added,
"when we firmly believed we had adduced direct evidence of
incendiarism, the presiding judges ruled against us and dis-
charged the defendants. The decisions in each instance were
painful to me."
Fire Marshal Heaton expressed the opinion that when
it had become generally known that all fraudulent fires are
to be investigated, this in itself will have the effect of re-
ducing the number considerably. "Many insurance men gen-
erally regard the matter of spontaneous combustion as a mere
bugaboo," remarked the fire marshal. "Investigations reveal
the fact that seventy-five per cent, of the fires are due to
spontaneous combustion. At present I am exchanging corre-
spondence with the fire marshal of Switzerland, who has
made some wondei-ful discoveries concerning spontaneous
combustion. I am having the correspondence translated and
printed in different languages for distribution in Ontario,
and I am satisfied that when you have studied the question,
that those of you who regard spontaneous combustion as a
bugaboo will be amazed to learn that in reality it is a real
fire menace."
Fire losses in barn fires last year amount 3d to over
$1,800,000. The fire marshal held that every farmer should
equip his barns with lightning rods, a contrivancj which had
been instrumental in a large measure in ths r-duction, of
barn fires during the past couple of years.
On Wednesday the chief speakers were V. Evan Gray,
provincial superintendent of insurance, and G. L. Miller, of
Jarvis, Ont.
MILK RIVER MUTUAL FIRE INSURANCE CO.
The annual meeting of the Milk River Mutual Fire In-
surance Co. was held in Milk River, Alta., on February 23.
The company enjoyed a prosperous year. Losses paid during
the year amounted to $6,771. The volume of business in-
creased materially throughout the field covered, by this com-
pany which, roughly speaking, comprises the whole of
southern Alberta. The total insurance in force to date is
$2,930,055. The statement shows that the company has
assets to the amount of nearly $77,000, with liabilities of
$2,263. The cash on hand at the close of last year, accord-
ing to the statement, was $3,321. G. N. Giles is secretary-
treasurer.
At a provincial Town Planning and Housing Conference,
held in Toronto, February 17 and 18, John W. Bruce, a pro-
minent labor leader, gave the details of a comprehensive
scheme which has been prepared by the National Joint In-
dustrial Council of the Building Industry, of which lie is a
member. The scheme was one which the council felt should
be fathered by the Federal Government, who would also be
responsible for carrying it into effect. The scheme proposed
that a loan should be floated by the Federal Government for
$250,000,000, to be known as "the housing loan," the proceeds
to be used entirely for the purposes of housing, provision
being made that anyone buying bonds should be able to apply
them in part payment when they desired to build. The scheme
also provided for the establishment of a Federal Housing
Board, to be appointed by the government, the workers to
have full representation on such board.
The board would also have the authority as acting for
the government, and would be agents in making grants, etc.
In the distribution of the money the organizers of the scheme
felt the govei'nment would not need to create new machinery,
as they had all that was necessary already in existence in
the Dominion in the shape of a number of permanent loan
companies. These, acting as agents for individuals, did their
work on a creditable financial basis, and the council felt that
they could be used in connection with the disbursement of
money under the scheme. These companies had the machinery
for making investigations and looking after the collections.
The loan would be for thirty years, repayments to be made
monthly or quarterly as desired. Advances would be made
up to 85 per cent, of the value of the property desired; and
the interest suggested was 3 per cent.
CANADIAN FORESTRY ASSOCIATION
At the twenty-first annual meeting of the Canadian
Forestry Association, held in Montreal on January 20, C. E.
Usher, of the Canadian Pacific Railway, was returned presi-
dent. Dan McLachlan, of Arnprior, was elected vice-presi-
dent; secretary, Rob. Black, of Ottawa; treasurer, Miss M.
Robertson, Ottawa. Directors elected included: Ontario—
G. C. Edwards, Clyde Leavitt, R. H. Campbell, C. J. Booth,
T. W. Dwight, J. W. Black, Ottawa; Prof. B. E. Fernow, E. J.
Zavitz, Albert Grigg, W. E. Bigwood, C. T. Young, Toronto;
Percy E. Wilson, Sault Ste. Marie; J. A. Gillies, Braeside,
Ont.; Dan McLachlan, Arnprior; Hon. J. Gordon, North Bay.
Manitoba — J. W. Dafoe, Winnipeg; G. W. Allan and E. Fitz-
gerald. Saskatchewan — John Dixon, Maple Creek; Hon. A.
Turgeon and Joseph Glejin. Alberta — William Pearce, G. R.
Marnock and Noiman Harvie. Britioh Columbia — Hon. H.
Bostock, Hon. A. C. Flumerfelt, R. D. Prettie, H. R. Mac-
Millan, Charles McNab and P. J. Caverhill.
UNION BANK DIRECTORS' MEETINGS
Consequent upon the increasing importance of the
bank's business in eastern Canada, the directors of the Union
Bank of Canada on Tuesday, February 23, inaugurated the
first of a series of monthly meetings, to be held in the city
of Montreal. The Union Bank's system has developed in
the east until there are now 120 branches in Ontario. Quebec
and the maritime provinces, and it was decided at the annual
meeting in Winnipeg to institute the policy of holding regular
meetings of the bank's eastern representatives at Montreal.
Tuesday's meeting was attended by the following direc-
tors and officials: — Sir William Price, Quebec, honorary
president; G. H. Thompson, Quebec, and Stephen Haas, Tor-
onto, vice-presidents; Sir John Carson, C.B., Montreal; Hume
Blake, Toronto; B. B. Cronyn, Toronto; S. E. Elkin, M.P., St.
John, N.B.; R. 0. McCulloch, Gait; H. B. Shaw, General
manager, Winnipeg; and Geo. Wilson, assistant general man-
ager, Toronto.
February 25, 1921
THE MONETARY TIMES
37
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EIGHTH ANNUAL REPORT
The Waterloo County Loan and Savings Co.
The Directors of The Waterloo County Loan and Savings Company have pleasure in submitting herewith to the Shareholders their Eighth Annual
Report, showing the result of the Company's operatinos for the past year, accompanied by the Balance Sheet to December 31st, 1920.
After providing for Interest on deposits and debentures, and defraying the expenses of management, the balance available for distribution is as
follows :
Balance brought forward from 1919 . _ ^ l _ $2,256.04
Premium on stock _ .. , 1,'753.00
Net Profits for the year 56!994.S3
This amount has been disposed of as fallows:
Two half-yearly Dividends, Xos. 13 and 14, at the rate of six percent, per annu
Set aside to Special Contingent Account
Transferred to Reserve Account
Balance carried forward
$61,003.87
$37,507.35
6,000.00
15,000.00
$61,003.87
During the past year the Company's bu.slness increased very satisfactorily, and while conditions In general throughout the country have quieted
down considerably in the last few months the change no doubt Is a healthy one. We have confidence that the operations of our Company will continue
to expand and Increase the highly satisfactory business which has been built up within the last few years.
Your Directors feel that tlie record of the Company during Its short career has been a creditable one. A sli per cent, dividend has been main-
tained since Its inception, and substantial amounts added to Reserve AccOTints from the profits of the business. By reason of the fact that the Com-
pany operates two offices. Waterloo and Kitchener, the overhead expenses are larger than would be the case were a similar volume of business con-
fined to the one office. It Is the desire of your Directors to build up the Reserve Account of the Company so as to Insure Increased profits, in the
future, by way of dividends to the Shareholders,
The Investments of the Company have received careful attention, and the books and vouchers, both at the Head Office and at Kitchener Branch,
have been audited monthly, the Auditors' Certificate being attached herewith.
Your Directors exceedingly regret having to record the death In November last, of Mr. P. H. Sims, who was a Director of the Company since Its
organization and an active worker In the building up of Its business.
The two vacancies of the Board have been filled liy the appointment of Mr. J. H. Gundy, of Toronto, and Mr. J. M. Scullv, of Kitchener, Mr.
Scully's term of office as .\udltor having ended with the Completion of the Company's report to December 31st, last
All of which Is respectfully submitted.
Waterloo, Ontario, .lannary 2Sth, 1921.
THOS, HILHARD, President.
PROFIT AND LOSS ACCOUNT
Interest on Deposits and Deposits Receipts
Interest on Debentures
Interest on Loans
Commission Account _ 1,
Expenses, Including Provincial and Municipal Taxes, Salaries,
Rentals. Printing, etc, _ — — 28,
Dividends Nos. 13 and 14 - 37,
Transferred to Contingent Reserve Funds _ 6,
Transferred to Reserve .\ccount - 15,
B.\I,.\MK, Profit and Loss 2,
,180.53
,377.01
.157.79
,«9g.(M
,706.04
,807.35
,000.00
,000.00
496.52
Balance brought forward _.._ _ _. $2,256.04
Premltun on Stock 1,753.00
Earnings on Mortgages, Government, School and Municipal
Bonds, etc. 178,115.24
ASSETS
Office Premises (Kitchener and Waterloo)
Real Estate held for sale
MORTGAGES —
Interest
Canadian Municipalities, School Districts and Rural Tele-
phone Debentures -
Other Bonds and Debentures (guaranteed as to principal and
interest by the Dominion or Provincial Governments). —
Cash on Hand _._
THOMAS HlLl.lARD. President.
ASSETS AND LIABILITIES
LIABILITIES
.J 77,359.00 To the Public —
36,124.19 Savings Deposits _.$1, 127,700.92
' Debentures _ 643,225.72
)OI,IS3.06 Money Borrowed with Security —
39,379.22 Dominion Government against security of
1,040,532.28 Victory H.)nds _ 229.195.23
To the Shareholders —
58,059.92 Capital Stock subscribed, $683,000.
Capital fully paid $610,916.52
509,459.89 Capital partly paid 27,848.30
792,068.06 Reserve Account ______...
Contingent Reserve Fund
Dividend declared, and unpaid (due Jan. 1, 1921)
Profit and Loss Account _
133,926.50
109,303.74
33,083.44
P. V. WILSO.V. Manager.
the yc
42,000,121.87
638,764.82
120,000.00
9,500.86
19,032.95
2,496.52
$2,789,917.02 m
To the Directors and Shareholders of The Waterloo County Loan and Savings Company:
(GENTLEMEN :
We beg to report that we have audited the books of account of your corporation fo
the cash, hank lialan.v and securities of the corpcratlou.
That we have examined tlie annexed statement and that it agrees with the books of the corporation.
That after due consideration we have formed an Independent opinion as to the position of the corporation.
That with our Independent opinion so formed and according to the best of our Information and the explanation given us, we certify that In our
opinion the .statement sets forth fairly and truly the state of the affairs of the corporation.
That all transactions of the corporation that have come within our notice have been within the powers of the corporation.
J. M. SCULLY, F.C.A.. I
J. SCULLY, ^
Respectfully submitted, m
Waterloo, Ontario, January 25th, 1921. g
Directors : Thos. Hllll ird. President, Waterloo ; E. F. Seagram, Vice-President, Waterloo ; S. B. Brlcker, Waterloo ; F. S. Kumpf. Waterloo ; J. H. =
Gundy. Toronto ; H. .7. Sims. Kitchener ; Pred Halstead, Waterloo ; W. L. HUIiard, M.D., Waterloo ; Geo. D. Forbes, Hespeler ; A. J. Klmmel, Cobourg ; ^
J. M. Scully, Kitchener. p
Manager: P. V. WILSON. Solicitors: McBRIDE & McKENZIE. p
448 ■
iilillllllllllllMlllllllllllllllilllllllllllllllHillllllllllllllllllllllllllllllllllM
nding 31st of December, 1920. and have-verified =
Auditors.
38
THE MONETARY TIMES
Volume 66.
HUDSON'S BAY LAND SALES
Since the Hudson's Bay Co. sold its first piece of land in
Manitoba, more than forty years ago, the company has dis-
posed of more than three and a half million acres of farm-
ing land in the prairie provinces of Manitoba, Saskatchewan
and Alberta, according to H. F. Harman, land commissioner
for the Hudson's Bay Co.
The first regular sale of farming land, after the western
prairie had been surveyed by the Dominion government, and
which is on the company's record as sale No. 1, was made
to William McKechnie, of Emerson. This sale was made
August 4, 1S79, and was a section of 640 acres, which sold
at $6 per acre.
"Sales continue to be made at the rate of approximately
20,000 acres per month," declares Mr. Harman, "and practi-
cally all lands are sold for development and farming pur-
poses. Sales are made under a regular contract, which
matures in seven years, but in the event of unforeseen cir-
cumstances this time is extended, and there have been times
when it has taken the purchaser twenty years to secure a
title. This patient policy of the company has done a great
deal towards keeping settlers in Canada who would, under
less favorable conditions, have gone elsewhere. This policy
has been found to be well worth following, and the sales of
land of the future will be governed by it just as much as
have those sales made during the past forty years."
MORTGAGE CLAUSES IN FIRE INSURANCE POLICIES
G. D. Finlayson, superintendent of Insurance, Ottawa,
has issued the following memorandum for the information of
fire insurance companies: —
"The department has had recently drawn to its atten-
tion a mortgage clause in use by certain mortgagees which
contains the following paragraph: —
"This policy, as between the company and the mort-
gagees, shall continue in force as long as any of the money
secured by the mortgage is unpaid, notvdthsanding that the
time for payment of premium or renewal premium may have
elapsed, until either the company or the mortgagees give ten
days' notice in writing to the other of them of their desire
that the policy should no longer continue in force, but the
mortgagees shall pay to the company a proportionate part
of the premium at the rate charged in the policy up to the
expiration of such ten days."
Section 123 of the Insurance Act, 1917 is as follows: —
No fire policy shall be issued for or extend over a longer
period than three years.
"There would appear to be conflict between the para-
graph in question and the quoted section of the Act, inas-
much as under the former, the duration of the policy is inde-
finite in the event of the premium or renewal premium not
being paid. The effect of the clause is practically to make
the insurance in some cases terminable only on notice by
either party.
"In so far as the paragraph is intended to secure due
notice of cancellation of the policy, during", the currency
thereof, to the mortgagee, there can be no objection taken to
it, but it should not operate to contravene the above section
of the Act.
"The department would ask the company to have re-
gard to the foregoing in issuing its policies subject to a
mortgage clause, and to have the paragraph in question modi-
fled to comply with the Act."
DIVIDENDS AND NOTICES
UNION BANK OF CANADA
DIVIDEND No. 136
Notice is hereby given that a dividend at the rate of
10% per annum upon the Paid-up Capital Stock of the Union
Bank of Canada has been declared for the current quarter,
and that the same will be payable at its Banking House in
the City of Winnipeg, and also at its branches, on and after
Tuesday, the First day of March, 1921, to shareholders of
record at the close of business on the 12th day of February
next.
The Transfer Books will be closed from the 14th to the
28th day of February, both days inclusive.
By Order of the Board.
H. B. SHAW, General Manager.
Winnipeg, Januan,' 21st, 1921. 398
BANK OF HAMILTON
QUARTERLY DIVIDEND NOTICE,
A Dividend of Three Per cent. (3%) for the Quarter,
together with a Bonus of One-half of One Per cent. (%%)
on the Paid-up Capital for the three months ending 28th
February, 1921, has been declared, and will be payable on
the 1st March, 1921. This makes a total distribution of
Thirteen Per Cent. (13%) for the financial year. The divi-
dend and bonus on New Stock will be computed at the same
rates, but in accordance with the terms of issue, and both
will be payable to shareholders of record at close of business,
February 15th, 1921.
By Order of the Board.
J. P. BELL, General Manager.
Hamilton, 24th January, 1921. 397
NSTITUTE OF ACTUARIES
STAPLE INN HALL. LONDON
NOTICE IS HEREBY GIVEN:—
1. That the Examinations of the
Monday, 20 June, to VVedne
clus
■ill be held fron
2. That Candidates presenting themselves for the first time for Part I
of the Examinations must malie application for admission as
Students of the Institute on the form to be obtained from the
Local Supervisor, and remit the Application Fee of £1 I 0. in
addition to the Examination Fee.
3. That all applications of Candidates for Examin.ition. and all re-
mittances from them, should reach the Hon. Secretaries in Lon-
don, not later than 20 April, 1921.
(By Order) H. M. TROUNCER. I Hon.
A. C. THORNE. I Sees.
G. CECIL MOORE,
The Imperial Life Assurance Co. of Canada.
20 Victoriil St.. Toronto.
Hon. Supervisor in Toronto " 44^
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street
C. H. MACAULAY J
■ VANCOUVER, B.C.
NICOLLS. Notary Public-
John Henry Paterson, late of Toronto, and president of
the Toronto Hardware Manufacturing Co., who died Febru-
ary 4, 1921, left an estate of $.557,950. By his will all the
estate goes to his wife, Mrs. Florrie Paterson, who renounces
probate in favor of the Toronto General Trusts Corporation.
The company is now applying for administration.
MAHAN-WESTMAN, LIMITED
SUCCESSORS TO T. MEREDITH. LIIBITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. W. M^HAN J.A. WESTMAN
President Managing Director
FebiTjary 25, li)Cl
T K
MONETARY TIMES
DIVIDEND NOTICES
BANK OF MONTREAL
Notice is hereby given that a Dividend of Three Per
Cent, upon the paid-up Capital Stock of this Institution has
been declared for the current quarter, payable on and after
Tuesday, the First Day of March next to Shareholders of
record of 31st January, 1921.
By Order of the Board.
FREDERICK WILLIAMS-TAYLOR,
General Manager.
Montreal, 21st January, 1921. 373
THE OGILVIB FLOUR MILLS COMPANY, LIMITED
DIVIDEND NOTICE
Notice is hereby given that a quarterly dividend of one
and three-quarters per cent, has been declared on thi Pre-
ferred Stock of the Ogilvie Flour Mills Company, Limited,
payable Tuesday, the first day of March, 19 U, to share-
holders of record at the close of business, the twenty-second
(lay of February, 1921.
Bv Order of the Board.
G. A. MORRIS,
Secretary-Treasurer.
Montreal, February 14th, 1921. 435
THE CANADIAN BANK OF COMMERCE
DIVIDEND No. 136
Notice is hereby given that a dividend of Three per cent,
upon the capital stock of this Bank, being at the rate of
twelve per cent, per annum, has been declared for the quarter
ending 28th February next, and that the same will be pay-
able at the Bank and its Branches on and after Tuesday,
1st March, 1921, to shareholders of record at the close of
business on the 13th day of February, 1921.
By Order of the Board.
JOHN AIRD, General Manager.
Toronto, 21st January, 1921. 279
LAKE OF THE WOODS MILLING COMPANY, LIMITED
DIVIDEND NOTICES
Notice is hereby given that a Dividend of 1% per cent,
on the Preferred Stock of Lake of the Woods Milling Com-
pany, Limited, for the three months ending February 28th,
1921, has been declared, payable on Tuesday, March 1st, 1921,
to Shareholders of record at the close of business on Thurs-
day, February 24th, 1921.
By Order of the Board.
R. NEILSON,
436 .\ssistant Secretary.
Notice is hereby given that a Dividend of 3 per cent,
on the Common Stock of Lake of the Woods Milling Com-
pany, Limited, for the three months ending February 28th,
1921, has been declared, payable on Tuesday, March 1st, 1921,
to Shareholders of record at the close of business on Thurs-
day, February 24th, 1921.
By Order of the Board.
R. NEILSON,
■}36 .Assistant Secretary.
The
British Columbia
Permanent Loan
Company
Twenty -Third Annual Meeting of Shareholders
The 23rd Annual Meeting of the Sh,arehoIders of The British Coliunbla
Permanent Loan Company was held in the Head Office, 330 Pender Street, Van-
couTer, B.C.. on Wednesday. February 9th, at 3 p.m.
Dr. D. H. Wilson, president, occupied the chair, and the secretary-treasurer,
.Mr. James Low, acted as secretary, and read the annual report, summarized as
follows : —
The Net Profits, after providing for all interest charges and expenses,
amount to $126,467.79. To this amount has to be added $104,709.44 brought for-
ward from 1919, making in all 1231,177.23 available for distribution. Your direc-
tors have applied these funds as follows : —
Two Semi-annual Dividends on Permanent Stock at the rate of 6%
per annum _ _ $ 55,528.42
2^0 bonus to Shareholders 18,534.28
Interest on Terminating Stocks _. _. 192.0*
Transferred to Keserve Fund _ » 105,596i(lS.
Transferred to Contingent Fund (provision for Dominion Income
Tax) , 10.000.00'
Balance carried fonvard to 1921 41.326.8*
Total
-$231,177.23
The Reserve now amounts to $725,000, or 78% of the Paid-up Capital.
Government Bonds held by the Company total $478,282.11. an Increase of
$123,521.87.
The immediately available assets (Bonds and Cash), $644,753.33, exceed 50%
of the total public liability, and this strong liquid condition ensures prompt
payment of all demands that might be made upon the Company,
Very marked Improvement Is shown In accrued Interest receivable, the
amount now standing at $33,991.94, as against $18,319.73 a year ago. Tbis
$33,991.94 has not been taken Into the Profit and Loss statement.
The Total Earnings for the year, $254,849.41. have been exceeded on but two
occasions In the Company's history, while the ratio of earnings to Assets Is
greater than In any previous year.
AUDITORS' CERTIFICATE
Vancouver, B.C.. 17th January, 1921.
W« have audited the accounts of The British Columbia Permanent Loan
Company for the year ended 31st December, 1920, and beg to report that the
transactions during the period have been accurately recorded In the books, the
rorelpts as shown therein have been properly accounted for, vouchers produced
for all payments, and all investments have been duly authorized. We have ex-
amined the mortgage loan accounts and ha\e verified the cash at banks by cer-
tificates, the cash on hand by actual count, negotiable securities by inspection
or certificates from the depositaries, and certificates of title have been Inspected
for all real estate.
The accrued Interest receivable at 31st December, 1920, amounting to $33,-
991.94, has not been Included In the Profit and Loss Account for the period.
The Balance Sheet appended hereto Is. In our opinion, properly drawn up
so as to exhibit a true and correct view of the affairs of the Company as at 31st
December, 1920, according to the information and explanations given to us, and
:is shown by the books of the Company.
BUTTAR & CHIENE, C. A. (Edin.)
PRICE, WATERHOUSE & CO., C. A. (Eng.)
Mortgage Loans
Government Bonds
Company's properties
Office furniture
Properties sold or for
Sundry investments .,-
Accrued interest
Cash .._
Debentures and Deposits .
Sundry Creditors
ASSETS
LIABILITIES
Total Public Liabililii
Capital Stock
Dividend, January, 1921
Terminating Stocks _
Reserve Fund _
Unappropriated Profit
$1,447,918.09
... 478.282.11
_ 500,000.00
2,000.00
_ 287,948.90
810.00
... 33,991.94
_ 166.471.22
$2.917.422.26
..$1,119,214.08
.. 926,721.24
46,31«.00
_ - 3.552.50
,. 725.000.00
96,618.44
President— rir. D. H. Wil.si.n
Vice-President— W. H. Malkln
General Manager- T. D. Macdonald
Secretary-Treasurer — James Low
Inspector— .\lbert Whlttaker
Board of Directors
C. Spencc
George Martin
Robert Galletly
$2,917,422.26
THE MONETARY TIMES
Volume 66.
Corporation Finance
Shawinigan Power Company Had Very Satisfactory Year— F. N. Burt Profits Increased —
Preliminary Plans of New British Empire Steel Corporation — Record Business and Profits
for American Salesbook Company— New Brunswick Telephone Company Had to Draw
from Depreciation Reserve — Dominion Power Net Earnings Were Lower Last Year
British Columbia Electric Railway. — As a result of a de- exchange, which during the year cost the company $68,378.
cision of official.s of municipalities in which the company The value of all properties is given at $23,481,.327. Income
operates to take immediate steps to pass such by-laws as will tax charges for the year amounted to $30,305.
maintain existing conditions under which the railwa.y oper- xro -i-rii. i-ri,- i u.^
. , ,. f, . . ., , r^„„„..„i iUo„or,o^ New Brunswick felephone Co. — In his annual report to
ates, including the street railway fares, General Manager j + n i r- d tji 1 i ^u * i
„.,'..,., , , 4.i,„. +v,„ „„„i; shareholders, the pi'esident. Col. i. B. Black, made the fol-
Kidd, of the railway company, has announced that the appli- . ' . ^ ,,j V .... j., « • , ^ <.
^ • ^. V, i ^u IT. , .. \T„\ lowing statement: In submitting the financial statement
cation to Ottt/wa to transfer the company to the Fraser Val- , ^if i- r. u oi i mon j- ^ n
; , " , „ ., „ , ^u i iu 1, 1 + for the year endintf December 31st, 1920, your directors call
ley and Southern Rai way Co., in order that the whole system ^- ^ ,.. r * -.u * • i- tu tu ■
•^ , ^""'■""= ' .' ' J ,, r> ■ • D„ J ^f attention to the fact that m compliance with the change in
might come under the jurisdiction of the Dominion Board oi ■ ..u u • ♦ t • » tu
luigin, ».i7..ic U..U,.,. ..J p^jj. ]r,y.]j,^ys requiring the business year to terminate on the
Railway Commissioners, would be withdrawn. Present condi- oi <. <• T^ u ti i: • i ,. ^ t u n u
ix<iiiw<.j V.IJ1111.1.CO.UI1C "; ' "" 31st of December, thei financial statement herewith sub-
tions will continue until June 30, 1922. ^.^^^^ ^^^^^^ ^^^j^ ^.^^ ^^^^^^ ^^.^^ ^p^jj ^^^ ^^ December
Shredded Wheat Co. — The consolidated report of the 31st, 1920. The material growth of the company has been
Shredded Wheat Co., the Canadian Shredded Wheat Co., Ltd., satisfactory. One hundred and ten miles of farmer line cir-
and the Pacific Coast Shredded Wheat Co., shows net income cuit have been erected and the toll system has been increased
for 1920 at $871,684, as compared with $1,378,449 in the pre- by the erection of 7.50 miles of copper and phantom circuit,
vious year. The gross income, less operating expenses, was There has also been a satisfactory increase in the number of
$1,094,533, as against $2,005,637 previously. The surplus car- long distance calls.
ried forward amounted to $1,450,763, while in 1919 the figure "Coming to the financial side corresponding increases
was $1,370,174. ^-iH be found both in earnings and expenses. Owing to
Total assets have increased from $11,691,207 to $13,- jgi^y j^ receiving our increased rates the net earnings of
757,775, the principal increases being in investments, accounts the company have been vei-y much below the requisite
and inventories, and lands and property. Under liabilities amount. Tlie statement attached herewith shows net earn-
sundry accounts are slightly higher, while a new item of jngg for the nine months of about $4,000 more than sufficient
$1,335,000 appears under notes and acceptances payable. to pay dividends on the capital stock, without, however, al-
Shawinigan Water and Power Co.— From every stand- lowing an.vi:hing to be placed to reserve for depreciation,
point 1920 was a highly satisfactory year for the company. "During the year something over $81,000 was drawn
Gross earnings amounted to $3,943,359, compared with $3,- from depreciation reserve for replacement, and you will
727,045 in 1919 and $3,621,074 in 1918. Expenses were some- note that our reserve for depreciation is reduced by that
what higher, but the net earnings are shown as $1,609,042, amount. When this amount is considered in connection with
which figure compares with $1,473,743 in the previous year. the fact that the preceding financial year left us $80,000
Dividends of $1,400,000 were paid, being an increase of about short and this year $116,000 short in the amounts considered
$160,000 over 1919, $200,000 was transferred to reserves and necessary for depreciation reserve making a total shortage
a balance of $39,593 was carried forward, as compared with in this account of approximately $200,000, the necessity of
$30,550 in the preceding period. increased rates is clearly demonstrated.
The balance sheet shows many important changes, as the "The rates now in effect were gra.nted the company
following comparisons will illustrate: — in July, 1920, but the statement herewith submitted shows
1920. 1919. the full benefit of these rates for less than two months.
Property $14,288,102 $13,701,213 Your directors anticipate that the net earnings for the com-
Machinery 4,239,700 4,110,572 ing' year will show a substantial increase, and put the com-
Lines 4,680,919 3,913,994 pany in a position to maintain the necessary depreciation
Investments 12,540,060 10,610,442 reserve. It will take several years, however, to bring this
Call loans 770 000 depreciation account to normal. It may be noted in passing
Total assets 39,566,569 34,975,174 '^at the putting into effect of the new rates caused im-
gofijg 9 325 500 9,353,261 mediate loss of about 1,000 telephones. This loss, however,
j^Qj-gg 4 Qoo 000 '^ being rapidly replaced, the net loss to date being only
Sinking fund, etc 3!o28',652 2,978,838 382, and the company is now experiencing its normal .growth.
Depreciation,' etc 1,385,615 1,141,019 ^°^ ^^'^ coming year about $300,000 will have to be expended
Accounts payable '.'. 4031208 '739!o24 °^ reconstruction, equipment and new lines and a very con-
siderable amount on new buildings, making a total budget
Dominion Power and Transmission Co. — At the annual approximately $500,000."
meeting of the company in Hamilton this week, Col. J. R.
Moodie, the president, stated that the fares of the Hamilton Howard Smith Paper Mills, Ltd.— For the twelve months
street railway would have to be increased if the public was ended December 31 last, earnings of the company were at
to have accommodation. It was not reasonable, he said, in a record level, net profits for the year being $1,089,898. This
view of the fact that companies in many other cities had se- compares with $704,261 in the 1919 period, the latter figure
cured increased fares, to expect the Hamilton company to representing the earnings of the Howard Smith Paper Co.
continue with no reasonable return for its investment. ^^<i those of the Toronto Paper Manufacturing Co. for the
While the earnings showed an increase last year operat- f"'! twelve months, so that the 1920 increase amounted to
ing expenses were abnormal, and the profits were less. The $385,657. After deducting bond interest and preferred stock
net earnings of the company in 1920 were $940,525, as com- dividends, which totalled considerably higher than in 1919.
pared with $1,008,119 in 1919. Gross earnings for the year owing to the capital reorganization of the company, and the
were $3,803,723, an increase of $326,336 over the previous acquisition of the Toronto Paper enterprise, there remained
year. Operating expenses during the year amounted to $2,- ^ balance of $891,898 applicable to the increased common
771,875. An item illustrating financial conditions is that of ■ (Continued on page 58)
February 25, 1921
THE MONETARY TIMES
dllllllMllltlMIMIIIIIIIIIIIIMMIIIIIIIIIIIIIIMIIIIIIIMIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIDIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII(b
i CHARTERED ACCOUNTANTS [
IMIIIIIIIIIIIIIIIIIIIIIIIIIUIIIIIIIIHIIIIIIMIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIMIIIIIIIIIIMIIMMIIIIIIIIIIIIIMIMMIIIUIIIIIIIIIIIIIIIIIII^
Baldwin, Dow & Bowman
CHARTERED ACCOUNTANTS
OFFICES AT
Edmooton ■ Alberta
Toronto • ■ Out.
CHARLES D. CORBOULD
Chartered Accaantant and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
Correspondents i\t Toronto. London. Hng-,
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Branch at Nanaimo, B.C.
Crehan^ Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON ONTARIO
l-:stahlishcd \»K1
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Chambers
Winnipeg, Man.
W. A. Henderson, C A. J. J. Cordner. C.A.
C:ihle Address "Ormlie" Western Union Code
Arthur E. Phillips & Co.
Chartered Accountants
508-509 Electric Railway Chambers
WINNIPEG Man.
Cililc Address— ■■ (.nruvel. ■
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS.
24 King Street West ■ TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELANU
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Chartered Accountants. AtiJitors,
Trustees. Liquidators
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thome, Mulholland, Howson & McPherson
3420
CHARTERED ACCOUNTANTS
ECIALISTS ON FaCTOKV CoSTS AKt> PROniXTION
Bank of
Hamilton BIdg.
TORONTO
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING - - TORONTO, CANADA
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Merchants Bank BIdg.,
1-:. R. C. Clarkson
H. D. Lockhart Gordon
-ed
Acco
ivers.
unta
LiQU
nts.
ida
Tru
tors
stee
15
Well!
ngto
n St
reel
We
1
st.iblis
hed IStiJ
K. Williamson, C.A.
A. ,J. Wallicr. C.A.
RUTHERFORD WILLIAMSON & CO.
Chartered Accountants. Trustees and
Liquidators
Sfi Adelaide Street F.ast. TORONTO
604 McGiu. BtlLDlN.,, M0.\TRF,AL
Cable Address WILLCO."
Represented at Halifax. St- John. Winnipeg.
HENRY BARBER & CO
Established 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railway Building.
.ing
Street West
Your card here would ensure it being seen by the principal
financial and commercial interests in Canada.
.Ask about special rates for this page.
THE MONETARY TIMES
Volume 66.
ACTION UNDER THE BANKRUPTCY ACT
Assignment Made After Petition in Bankruptcy Entered Does
Not I'revent Receiving Order of Court
ON a motion by the Canadian Credit Men's Associat'on,
Limited, as receivers under a receiving order for an
order directing the London and Western Trusts Company to
deliver possession of the estate of the Croteau and Clark
Company, Limited, to the applicants, the Ontai'io Supreme
Court in Bankruptcy, through Justice Orde, held that sub-
sec. 6 of sec 4 of the Bankniptcy Act does not apply to a
case where the debtor, with the palpable intention of choosing
his own ti'ustee, makes an assignment after he is served with
the petition in bankruptcy and before the return of the
notice of hearing, and a receiving order made on the return
of the notice renders such assignment ineffective.
The facts as stated by Justice Orde and the decision
thereon are as follows: —
"On November 1, 1920, Nisbet and Auld, Limited, filed
a petition in bankruptcy against the Croteau and Clark Com-
pany, Limited, an incorporated company carrying on business
as general merchants at Essex, Ontario. Upon the return of
the notice of hearing, on November 11, no one appeared for
the debtors, and a receiving order was made, adjudging the
debtors bankrupt, and appointing the Canadian Credit Men's
Association receivers of the estate.
order cannot have been intended to authorize or justify any
such practice. The words, 'at any time prior to the making
of a receiving order against him,' in that section ai'e perhaps
unfortunate as lending color to the suggestion that it is open
to a debtor to make an assignment after a petition has been
served, and the strict language of the section apparently
entitles him to do so; but, having done so, he stands, upon
the return of the notice of hearing of the petition, in no better
position than if he had made the assignment prior to the
service of the petition upon him. In my judgment, the au-
thorized trustee who claims under an assignment made to
him under such circumstances does not stand in as good a
position before the court as one to whom an assignment is
made before the service of a petition, because such an assign-
ment is clearly made with a view to thwarting the proceed-
ings in bankruptcy. There may be exceptional cases where,
for the purpose of preserving the property of a debtor, such
an assignment after service of a petition might be justified,
but the circumstances would have to be unusual. It ought
to be clearly understood that insolvent debtors will not be
permitted to make a practice of choosing their own trustees
after a bankruptcy petition has been served.
"I, therefore, declared upon the motion that the re-
ceiving order of November 11 had rendered the assignment of
November 8 ineffective, and that the London and Western
Trusts Company should forthwith deliver the debtor's pro-
perty to the receiver appointed by the receiving order."
Debtors Appointed Own Trustees
"When the receivers proceeded to take possession of the
assets of the debtors they found the London and Western
Trusts Company in possession under what purported to be
an authorized assignment under the Bankruptcy Act, 1920,
which the debtors had made to them, as authorized trustees,
on November 8, 1920. The London and Western Trusts Com-
pany had taken charge and called a meeting of creditors for
the afternoon of November 17, 1920.
"The Canadian Credit Men's Association, as receivers
under the receiving order, thereupon, upon leave given by
me, moved before me on November IV, 1920, for an order
directing the London and Western Trusts Company to de-
liver possession of the estate to the duly appointed receivers
under the receiving order.
"It was urged before me, on behalf of the London and
Western Trusts Company, that, as sec. 9 of the Bankruptcy
Act provides that an insolvent debtor 'may, at any time
prior to the making of a receiving order against him, make
to an authorized trustee' an assignment of all his property
for the general benefit of his creditors, the voluntary assign-
ment which the debtors had made on November 8 had priority
over the receiving order of November 11, and rendered the
latter ineffective. That this cannot be its effect is, however,
quite clear from the fact that an authorized assignment is
itself an act of bankruptcy upon which the court may, if it
see fit, upon the petition of a credtior, declare the debtor
bankrupt and make a receiving order: sec. 3 (a) and sec.
4 (1); and that the court may upon such application, if
satisfied that the estate can be best administered under the
assignment, dismiss the petition: sec. 4. (6).
Court's Power is Absolute
"Upon the presentation of the petition to the court, the
court's power is absolute to determine whether or not a re-
ceiving order shall be made, notwithstanding any prior
authorized assignment. Sections 3 (a) and 4 (6) doubtless
were intended to apply to cases where the authorized assign-
ment had been made before the filing of the bankruptcy
petition; but, that being so, sub-sec. 6 of sec. 4 cannot,
a fortiori, apply to a case where the debtor, with the palpable
intention of choosing his own trustee, makes an assignment
after he is served with the petition and before the return of
the notice of hearing. If that were not so, then the whole
scheme of the Act could be frustrated in every case by the
debtor's making a voluntary assignment immediately after
the service of the petition. The provision in sec. 9 that an
assignment may be made before the making of a receiving
CASE ON WAYAGAMACK SALES
On February 4, the Quebec Superior Court decided a
suit brought by John Mather against the Wayagamack Pulp
and Paper Co., while the plaintiff proved that his engagement
as sales man&ger for ths Wayag:amack Pulp and Paper Co.
was made at a salary of $10,000 a year "and commission,"
he was held to have failed to prove what rate of commission
he was entitled to, and upon what sales it was to have been
paid. For this reason his claim against the company to
recover $30,944 commission alleged to have been earned by
him from November 1, 1917, to November 30, 1918, was dis-
missed with costs.
TAXATION OF MINING PROPERTIES
Decision was given in Toronto on January 31 on the
long-standing dispute between the towmship of Tisdale and
a number of mines in the Porcupine camp on the question
of assessment, and the outcome, after many appeals, is a
judgment in favor of the mines, which are thus relieved of
a proposed assessment on their mill properties amounting
to in the neighborhood of $2,000,000, in all. The mines con-
cerned were Mclntyre, Dome, Schumacher, Dome Lake, Por-
cupine Crown and Davidson.
The claim of the township was that the mills were all
assessable for municipal taxes. The companies tlaimed that
the mills came under the term "concentrator," which, under
the Assessment Act, were exempt. The township of Tisdale's
contention was that the use of cyanide, which has a chemical
action, took the Poi'cupine mills out of the class known as
concentrators. They claimed that concentrators included only
covered mills, using mechanical processes. The Court of Re-
vision for Tisdale township decided in favor of the mines.
The District Court, on appeal, reversed the decision, the
Ontario Railway and Municipal Board reversed the District
Court judge's finding, and then the Appellate Division of
the Supreme Court of Ontario heard arguments last fall,
giving judgment recently in favor of the mines. The judg-
ment is of considerable importance, from a financial stand-
point, to the properties involved.
Bell, Gouinlock and Company, bond dealers, Toronto, have
moved their offices from the Confederation Life Building to
1001 Bank of Hamilton Building.
February 25, 1921
THE MONETARY TIMES
43
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I REPRESENTATIVE LEGAL FIRMS |
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CALGARY
Charles F. Adams, K.C.
Bank of Montreal Bldg.
CALGARY - - ALTA.
LETHBRIDGE, Alta.
Conybeare, Church
& Davidson
Barristers, Solic
tors. Etc.
Solicitors for Bank of Mo
and Loan Co. of Canada.
Trust Co.. &c
ntreal. THe Trust
Hritish Canadian
C. F. P. Conybeare. K.C, H
R. R. Davidson.
. W. Church. M.A.
LL.B.
Lethbridge
Alta.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT, SASK.
VV. F. \V. Lent. K.C. P
LL.B. H. I). Ma
LENT. MACKAY & MANN
KarrlmrrH, Mollcllorit. Kntarle», r.lr.
M.S Grain KxchanRc Bldj;., CalRary. Alberta
Cable Address ." Lenjo" Western Union Code
Solicitors for The Standard Bank of Canada.
The Northern Trusts Co., Associated .Mort-
K:iKe Investors. &c.
WRIGHT &WRIGHT
Barristers, Solicitors, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. A. C. Rutherford, K.C, LL.O.
P. C Jatnicson. K.C. Clias. H. Grant
S. H. .McCuaiK Cecil Rutherford
RUTHERFORD. JAMIESON
& GRANT
Barriatera, Solicitors, Etc.
514-18 McLeod BMg. Edmonton, Albert*
HALIFAX, N.S.
Maclean, Burchell^& Ralston
Barriatera, Solicitors, etc.
Chronicle Bldg., - Halifax, N.S.
L. .M. Johnstone, K.C J. Norman Ritchie
W. S. Gray
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE - Alberta
SASKATOON
MEDICINE HAT
G. F. H. LoNO,
LL.B.
J. \V. Sleh;ht, B.A.
LONG
&
SLEIGHT
B
arrialera, etc.
MEDICINE
HAT
>nd BROOKS, Alt«.
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers. Etc.
Sulicitnrs-Uank of .Mcntreal
Canadian B.ink of Commerce
Moose Jaw • Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
C, I.. DURiK. B.A. B. .M. Wakec.inc!
DURIE & WAKELING
Barristers and Solicitors
Solicitors for the Bank of Hamilton. The
Great West Permanent Loan Co, The
Monarch Life Assurance Co.
Canada RiillilInK Saskntoon, Canada
TORONTO
G. W. MORLEY & COMPANY
Barristers. Solicitors, Etc.
S02 Lumsden Building, Toronto
Solicitors for A. ("i. SpaldmK S Bros, of Can.,
Ltd.; A. J. Reach Co. of Can., Ltd.; Dominion
Chautauciuas, Ltd., etc., etc.
Special attention given to Corporation work
and collections.
Cable Address: "Morley." Toronto
VANCOUVER
BOWSER, REID, WALLBRIDGE.
DOUGLAS & GIBSON
Barristers, Solicitors, Etc.
Solicitors for B.mU of .Montreal (Bank of
British North America Branch)
Yorkshire Baildist. S25 Seymour St., Vii
Your Card here would ensure it being
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WE BUY
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FARM LANDS
And other good property, EDMONTON DISTRICT.
VALUATORS
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McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Elxchange
Calgary, Alta.
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106 BAY STREET - - - TORONTO
THE MONETARY TIMES
Volume 66
News of Industrial Development in Canada
Latest Action of Dominion Government May Result in Opening of Pulp and Paper
Trade in the West — Order-in-Council Has Been Passed Providing for Sale of Mani-
toba Timber Limits— Quebec Will Consider the Possibilities of Asbestos Production —
Nova Scotia Steel and Coal Has Not Shipped from Plant Since November
AN order-in-council has just been passed by the Dominion
government which it is anticipated will result in the
development in the near future of a large pulp and paper
industry in Western Canada, 'and relieve western publishers
from being dependent on eastern mills for their paper supply.
The order provides for the sale by tender or public auction
of a large pulpwood berth covering certain Dominion and
school lands in the province of Manitoba, east of Lake Win-
nipeg. It consists of two blocks of a total available area of
about 718 square miles, excluding lands previously disposed
of by the government.
Those who acquire the lands in question will be required
to enter into an agreement with the minister of the interior
to erect a pulp and paper mill costing, with equipment, not
less than one million dollars, with a daily output of not less
than 100 tons of pulp, at least 50 per cent, of which must
be made into paper at the plant. The balance may be ex-
ported if in the opinion of the minister it is not required to
supply the local market in Manitoba, Saskatchewan and
Alberta. The combined capacity of the mills must be such
as to employ an average of 120 men for ten months in the,
year.
Further provisions are that the mill must be in active
operation within three years from the date of the agree-
ment, and on its construction the sums of $200,000, $350,000
and $450,000 must be expended in the first, second and third
years respectively, permission to cut pulpwood being with-
held until the first year's expenditure is made. The pur-
chaser of the berth must furnish a bond of $75,000 that the
conditions will be carried out. If the berth is sold at auction
or by tender, the bidder must state the amount per cord he
will pay as a bonus on spruce pulp wood in addition to the
regular dues of 60 cents a cord, and the amount offered shall
be the basis of competition. The purchaser must also pay
40 cents per cord on other than spruce pulpwood. In
stipulating that the paper output must be not less than 50
tons daily, the government estimated that as the present
daily consumption of newsprint in Manitoba, Saskatchewan
and Alberta.
Asbestos in Quebec
There is a possibility that the Quebec government will
endeavor to develop the asbestos industry in the province
so as to give employment there in the same manner as the
great paper and pulp business has been developed. It is
said that about 85 per cent, of the asbestos supply of the
world is in Quebec, but the greater part of it is taken out
of the province into the United States in a raw state, and
the province benefits very little from these valuable deposits..
The government is considering whether it should not impose
some form of embargo, so that at least the asbestos will be
worked to a certain state of manufacture, if not altogether.
The situation is largely parallel with the wood position.
Wood cut on Crown lands cannot be exported except as pulp
or paper, and the asbestos comes from Crown property, the
mines not being sold outright, but mineral rights given. The
development of an industrial manufacturing business in
asbestos would, it is calculated, create a great and new in-
dustry in the province. It is possible that there will shortly
be an official announcement on the subject.
The province of Quebec does not get a great deal from
its asbestos wealth, though this produces more than 50 per
cent, of the whole of the mineral production of the pro-
vince. For the year ending June 30, 1920, the production
was 174,421 tons, with a value of $11,758,234. The demand
is greater than the supply, notes Theo. C. Denis, superin-
tendent of mines, in his annual report, recently issned.
An official of the Nova Scotia Steel and Coal Co. in
commenting upon the wage reduction announced recently,
stated that about two hundred and seventy-five men are
on the payrolls, and not a man can be classed a producer (in
the logical sense of the term. No iron and steel has left the
yards since November last, and the men are simply doing
odd jobs about the plant. He makes no prediction as to when
the plant will resume operations, but states that in order
to meet rivals on common ground the cost of production
will have to be reduced, and the first way is to reduce wages.
There is plenty demand for steel abroad, said the steel
official, but like everything else orders are held back await-
ing a slump in prices and which ever company can sell the
cheapest will get the contracts.
An addition to the plant of the Chatham Malleable and
Steel Manufacturing Co., Ltd., manufacturers of automotive
and hardware specialties and sanitary stable equipment at
Chatham, Ont., is now complete, and the necessary machin-
ery is now being installed. The company report satisfac-
tory conditions in their business. Their plant has been
working on full time all winter and orders in hand and
prospects seem to warrant the expectation that this will
continue for the balance of the season.
Page-Hersey Iron and Tube Co., Ltd., Guelph, Ont., an-
nounce the commencement of a night shift of 100 men. At
present the company is employing a day shift of 200 em-
ployees, but owing to large orders for pipes and fillings
recently received it has been found necessary to work two
shifts.
The National Steel Car Co., Ltd., Hamilton, Ont., has
resumed operations with a staff of 700 men. Three weeks
ago the plant was closed in order to make a slight wage re-
duction which it is understood has now been effected.
Another small iron working industry is to be located in
Port Arthur, Ont., with a promise to develop into something
big because one of the products to be manufactured is sub-
sidiary to the grain industry which is of magnitude at the
head of the lakes. Byron Hill, a resident of Port Arthur
for twenty-eight years, is starting the industry, located at
211 Ambrose St. When the plant is fully equipped and
running, fifteen men will be employed.
Drop in Paper Price
The Canadian Export Paper Co., Ltd., Montreal, has an-
nounced that its newsprint paper export price for the
second quarter of 1921 would be $110 per ton, or equal to
5',2 cents per pound. The new price becomes effective April
1, and is a reduction of one cent a pound over the old price.
The Canadian Export Paper Co. markets the output of a
number of the largest concerns in Quebec.
George F. Steele, general manager of the company, in
announcing the cut, said the company had not been influenced
by foreign competition, but because the cost of production
allows of a reduction. The drop in price has not been un-
expected. As Canada manufactures approximately 2,800
tons of newspint per day, a decrease of one cent per pound
will mean a reduction in gross receipts of $56,000 per day.
Ang-us McLean, general manager of the Bathurst Lum-
ber Co., Bathurst, N.B., announced this week that the big
pulp mill of the corporation which has been shut down since
December 24, would resume operations. The announcement
is of importance to Bathurst and vicinity, as five hundred
or six hundred men have been idle for nearly two months.
Coupled with the notice of resumption was one announcing
that it would be necessary to reduce wages twenty per cent,
throughout the entire plant.
February 25, 1921
THE MONETARY TIMES
45
The Imperial
Guarantee and Accident
Insureuice Compeuiy
of Canada
Head Office, 46 KING ST. WEST, TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $200,000.00
Authorized Capital - - - $1,000,000.00
Subscribed Capital - - - $1,000,000.00
Government Deposits - $111,000.00
L^~V T^ 1-X j^ T\T GUARANTEE AND
^-' *^ '--' ^-^ A^ ACCIDENT COY.. I^imited
Head Office for Canada - Toronto
Employers' Liability, Elevator. Contract. Per
Guarantee, Internal Revenue. Sicknes
Teams and .Automobile.
AND FIRE INSURANCE
The Western Mutual Fire
Insurance Co.
Head Office
Didsbury, Alberta
President-
-H. B. ATKINS,
M.L.A.
PARKER R, REED.
LARGEST ALBERTA
Managing Director
FIRE MUTUAL
CANADIAN STRONG PROGRESSIVE
FIRE INSURANCE
AT TARIFF RATES
Merchants Casualty Co,
Head Office : Winnipeg, Man.
The most progressive company in Cy
supervision of the Dominion and Provin
Embracing the entire Dominion of Canada.
SALESMEN NOTE !
Our accident and health policy is the most liberal protection offered
for a. premium of SI. IK) per month and up.
Covers over 2.50(1 different diseases.
Pays for Life if disabled through Accident or
Fifty per cent, extra if confined to hospital.
Pays for Accidental Death. Quarantine, Sur-
:on Fees for minor injuries, also for death of
encKciary and children of the Insured.
Good Openings for Live Agents
rn Head Office. Royal Bank Bldg,. Toronto
Office Electric Railway Chambers,
WinnipeR, .Man.
Commercial Union Assurance Co.
Limited, of London, England
Capital Fully Subscribed 8 14,750,000
Capital Paid Up 7,375,000
Total Annual Income Exceeils 75,000,000
Total Funds Exceed 209.000,000
llrnd Offlrr Cunadlnn Braurh :
COMMERCIAL UNION BUILDING - MONTREAL
H ALBERT J. KERR, AssiST,>NT .Manager. W. S. JOFLING. .Manager
Toronto Office - 49 Wellington Street East
OBO. R. HARGRAFT. General Agent for Toronto and County of York
FARMERS
FIRE & HAIL INSURANCE COMPANY
FIRE, HAIL AND AUTOMOBILE INSURANCE
Head Office, CALGARY. Saskatchewan Office, REGINA
M. P. JOHNSTON, Managing Director
WITHOUT
your being subjected to medical examination
the Life Assurance Companies of Canada for
years refused to issue Life policies. Three
years ago the Northwestern Life Assurance
Company introduced into Canada Life Assur-
ance without
MEDICAL
examination. That was three years ago. Re-
sults more than justified our action, and now
other Life Assurance Companies are following
our lead, and the system will eventually become
standard practice in Canada.
Don't let the- thought of Medical
EXAMINATION
keep delaying you. Assure your life with the
most progressive Life Assurance Company in
the Dominion — The Northwestern Life Assur-
ance Company of Winnipeg.
Other Offices take only $1,000 — we take up to
$2,500 Without Medical Examination.
The Northwestern is a good company to insure
in, and a good company to represent.
HEAD OFFICE:
166 Donald Street, Winnipeg
Ib« NORTH
ASSURANCE
MOfiTHWESTERN
BUILDIMC \)\l
«1FX.MEM10VE»/T ^Sm
THE MONETARY TIMES
NEW INCORPORATIONS
Total Capital for Week Ended February 22 is $16,482,500,
Compared with $17,098,100 Previous Week
AUTHORIZED capital of $16,482,500 is represented by
companies whose incoi-poration was reported to The
MoHctary Times during the week ended February 22, Com-
pared with $17,098,100 the previous week. A comparative
summary by provinces is as follows: —
Week ended Week ended
Feb. 15. Feb. 22.
Dominion $10,294,000 $ 3,892,500
Alberta 479,500
British Columbia 940,000 775,000
Manitoba 266,000
New Brunswick 310,000
Ontario 3,580,000 9,099,000
Quebec 1,804,600 1,839,000
Saskatchewan 301,000
Total $17,098,100 $16,482,500
The following is a list of companies recently incorporated
under Dominion charter, with head office and authorized
capital: —
Exchange Calculations, Ltd., Ottawa, $50,000; Holland
Varnish Co., Ltd., Montreal, $1,000,000; Nut Krust Products,
Ltd., Toronto, $250,000; Sumbling Machinery Co., Ltd., To-
ronto, $1,000,000; Graveline and Kennedy, Ltd., Quebec,
$150,000; Brydges-, Ltd., Montreal, $100,000; United Art Co.,
Ltd., Toronto, $40,000; Canadian Skate Manufacturing Co.,
Ltd., Quebec, $50,000; Buchan's, Ltd., Montreal, $2,500; Ship-
pers, Undci-wi-iting Agency of Canada, Ltd., Toronto, $50,000;
New Windsor Hotel Co., Ltd., Windsor, $1,200,000.
Provincial Charters
The following are the provincial incorporations: —
British Columbia. — Head-McCaw, Ltd., Vancouver, $100,-
000; North West Logging Co., Ltd , Vancouver, $10,000;
Powell River Drug Co., Ltd., Powell Paver, $25,000; Glenville
A. Collins, Engineers, Ltd., Vancouver, $5-\0J0; McDonald,
Murphy Logging Co., Ltd., Vancouver, $50,000; Smith and
Champion, Ltd., Victoria, $100,000; Ceramic Products, Ltd.,
Vancouver, $100,000; Wilcox Hat Co., Ltd., Victoria, $10,000;
Garford Trucks, Ltd., Vancouver, $15,000; Pioneer Laundry
(1921), Ltd., Prince Rupert, $25,000; Artie Club, Ltd., Van-
couver. $10 000; Modern Macaroni Manufacturing Co., Ltd.,
Victoi-ia, $o5,000; Granite Island Quarries, Ltd., Vancouver,
$25,000; Kitwanga Lumber Co., Ltd., Kitwanga, $225,000;
Robt. Sapp, Ltd., Vancouver-, $5,000; Prince George Mercan-
tile Association, Ltd., Prince George, $15,000; Dodson's
Bakery. Ltd., Vancouver, $75,000.
.^lanitoba.— Continental Agency, Ltd., Winnipeg, $20,000;
Metropolitan Cafe, Ltd., Brandon, $20,000; J. Mindess and Co.,
Ltd., Winnipeg, $20,000; Silberman Fur Co., Ltd., Winnipeg,
$20,000; Macdonald's, Ltd., Winnipeg, $20,000; the Altamont
Rink Co., Ltd., Altamont, $6,000; Campbell and Gurton,
Dauphin, $40,000; Rabinovich, Wolch and Co., Ltd., Winnipeg,
$100,000; .A.. G. Wilson and Co., Ltd., Winnipeg, $20,000.
New Brunswick. — Restigouche Agencies, Ltd., Dalhousie,
$10,000; J. M. Robinson and Sons, Ltd., St. John, $300,000.
Ontario. — Wentworth Oil and Gas Co., Ltd., Hamilton,
$100,000; Warren Transportation Co., Ltd., Toronto, $200,-
000; the Twin-City Arena Co., Ltd., Kitchener, $250,000;
W. M. Sutherland Co., Ltd., Toronto, $100,000; T.H.Hancock,
Ltd., Toronto. $1,000,000; Caplan Bregman Co., Ltd., To-
ronto. $40,000; Canadian Pulp Machinery and Engineering
Co., Ltd., Toronto, $200,000; Keenan Brothers, Ltd., Owen
Sound, $500,000; Fleming Bros., Ltd., Toronto, $40,000; Iron
Bridge Telephone Co., Ltd., Iron Bridge, $6,000; Stanwood
Cheese and Butter Co., Ltd., Campbellford, $3,000; Ontario
General Bankers Corporation, Ltd., Toronto, $200,000; Cana-
dian Service Stations^, Ltd., Toronto, $125,000; W. E. Harris
Manufacturing Co., Ltd., Toronto, $25,000; Reid and Com-
pany Lumber, Ltd., Toronto, $200,000; McDermid Bros., Ltd.,
Toronto, $40,000; Fort Norman Oil Co., Ltd., Toronto, $3,000,-
000; Toronto Auto Accessories, Ltd., Toronto, $50,000; Pro-
vincial Contracting Co., Ltd., Toronto, $250,000; Atlas Drug
Corporation, Ltd., London, $100,000; Alpine Chemical Co.,
Ltd., Toronto, $40,000; City Development Co., Ltd., Toronto,
$1.50,000; Chadwick-Carroll Brass Co., Ltd., Hamilton, $40,-
000; Wm. Farrar and Co., Ltd., Hamilton, $100,000; Brant
Foundries, Ltd., Toronto, $40,000; Real Estate Holdings, Ltd.,
Toronto, $200,000; Mackey's Bread, Ltd., Toronto, $40,000;
Middlesex and Dover Oil and Gas Co., Ltd., Toronto, $2,000,-
000; Peoples Investments, Ltd., Toronto, $60,000.
Quebec— Jos. Viel, Ltd., Riviere du Loup, $145,000;
Agence National de Quebec, Ltd., Quebec, $10,000; Blue and
White Auto Sei-vice Co., Ltd., Montreal, $20,000; Chapeau
Lumber Co., Ltd., Chapeau, $45,000; American Laundry, Ltd.,
Montreal, $20,000; Durham Lumber Co., Ltd., Montreal, $49,-
000; Association des Licencies de I'Ecole des Hautes Etudes
Commericales de Montreal, Montreal, $50,000; J. M. Wilson,
Inc., Montreal, $1,500,000.
Saskatchewan. — McCallum and SheiTy, Ltd., Saskatoon,
$25,000; Fry's Bakery, Ltd., Moose Jaw, $20,000; K.W. Elec-
tric, Ltd., Regina, $25,000; Plenty Rink Co., Plenty, $3,000
Great War Veterans' Building Association, Wadena, $8,000
F. H. Smith Farm, Ltd., Invernay, $30,000; B.F.T. Drug Co.
Ltd., Moose Jaw, $20,000; Peerless Printing Co., Ltd., Re-
gina, $20,000; Pasquia Hills Exploration Co., Ltd., Saskatoon,
$15,000; Guernsey Community Hall Co., Ltd., Guernsey, $5,-
000; Maple Leaf Department Store, Ltd., Regina, $50,000;
Red River Lumbsr Co., Ltd., Shellbrook, $5,000; Simpson
Curling and Skating Club, Simpson, $10,000; W. M. P. Starr
Co., Ltd., Indian Head, $15,030; MacDowall Rtnch, Ltd.,
Prince Albert, $20,000; J. Hanna, Ltd., Moose Jaw, $10,000.
INSURANCE LICENSES AND AGENCY NOTES
The Insurance Co. of North America, which already
transacts several classes of insurance in Canada has been
authorized by the Department of Insurance, Ottawa, to write
hail and sprinkler leakage insurance.
License has been issued to 'the ^tna Insurance Co.
authorizing it to transact in Canada the business of hail
insurance, in addition to the classes of business for which it
is already licensed.
A. McBean and Co. have been appointed general agents
at Montreal for the fire department of the Motor Union In-
surance Co.
P. M. Steeper has entered the service of the London
Mutual Fire Insurance Co. of Canada as m£..nager of the
casualty department. Mr. Steeper has had twelve years'
experience in casualty insurance in the offices of the Ocean
Accident and Norwich Union Fire Insurance Society. While
at the present time the c&sualty business of the London
Mutual is confined to automobile insurance, it is the inten-
tion of the company to add other lines as opportunity offers.
After being the subject of hours of debate since it was
first proposed before the Moose Jaw, Sask., city council, the
group insurance plan for city employees has been shelved.
The Union Insurance Society of Canton has appointed
P. F. Ellwood to take charge of its automobile department
for Montreal, which is represented by Joseph Rowat, the
general agent for the province of Quebec.
J. R. Wright, for many years connected with the C.F.U.A.,
Montreal, in various capacities, has been appointed branch
manager for the province of Quebec for the Northwesiem
Mutual Fire Association of Seattle, with headquarters, Beard-
more Building, Montreal.
Reginald B. Gaudin has been appointed office manager
for A. McBean and Co., insurance brokers, Montreal. Mr.
Gaudin has been connected with fire insurance in Montreal
for several years, during which period he was connected with
several of the leading fire companies, and also filled the posi-
tion of stamping officer with the C.F.U.A.
February 25, 1921
THE MONETARY TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE - $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto ' " Solid as the Continent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
■■SOLID AS THE CONTINENT"
HEAD OFFICE TORONTO
Important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE WINNIPEG. MAN.
Assurances, New and Revived ? 1, 21 1,447.00
Premiuuis on same - - 4.3,890.00
Assurances in I'orce - 3,458.939.00
Total Preuiiuin lucome • I09,,i86.03
Policy Reserves - 211,497.00
Admitted Assets . . . . '296,430.62
Average Policy . - - - . 2,237,50
Collected in cash per Si, 000 insurance in force 31.75
For particulars oF a good agency apply to
ADAM REID, Managing Director - Winnipeg.
Fifty-one Years of Steady Progress
One of the mo^t brief yet impressive histories of Canadian financial in-
stitutions is com ained in the i^nnunl record of 1 he Mutual Life of Canada-
The current issue will be ready in a few days. A copy will be sent toyou
on application. It contains Hfty-one successive summaMCS. shi wing in
the paralli-l columns the increase from year to year of the company's
\ariovts receipts, expenditures, etc. No other document could better
convey the idea of solid; uniform achievement, and the momentum of the
advance is now greater than ever. The prospects'are bright for a still
more raprd ex a ns ion within the next few years The as>etsof the com-
pany exceed $Jt» OOti 0(10, »nd the a^sur:<nces in force have reached
SJOfi.OOO 000. There is a gross surplus of more than five million dollyrs
over and ah vc the amount necessary to guarantee all policies, so that
the position of the company, in spite of the straii of leccnt years, is one
of uncommon strength.
The Mutual Life Assurance Co. of Canada
Waterloo
Ontario
CO-OPERATIVE SERVICE
'r« I\)lKyh<>KI. IS bctwi-in thi; ComiKiny and the ARents is the secret of our
siiLLcss. l-lvtry rtprcsent;Uivo is tiivcn the utmost assistance, but he must
look after our cheiils' interests. DuiinK the List 21 years Tke CoDtintntal Life has
built an enviahle reptitation for prompt payment of claims.
Write for booklet. "Dor Bnt Advertiien." ' Kor .ManaKers positions in
Ontario. :,pplv with references, statine espenence etc . to S. S. WEAVER, Eailcrn
SuperinteaiJciil, at Hrad Office.
THE CONTINENTAL LIFE INSURANCE CO.
Head Office
TORONTO. ONTARIO
ENDOWMENTS AT LIFE RATES
ISSLl-l) ONLY OY
THE LONDON LIFE INSURANCE CO.
Head Office ... LONDON, CANADA
Profit Results in this Company 70^, better than Estimates.
POLICIKS "OOOn AS GOLD.-
Judge by Results
There must be some poorl reason why The Great-
West Life Assurance Company wrote over sixty
millions of Insurance during 1920 -and now Has a
Business in force of over $256,000,000.
The reason is— the proven VALUE of the Great-West
Policies. High interest earnings on investments, and
low operating expenses, have affected remarkable
Results for Policyholders.
Asl( for pcnonal rala, .s/ad'ng age.
THE GREAT- WEST LIFE ASSURANCE COMPANY
HEAD OFFICE
WINNIPEG
The Western Empire
Life Assurance Company
Head Office : 701 Somerset Building, Winnipeg, Man.
SASK.ATOON
VANCOUVER
Northwestern
Mutual Fire
Association
SEATTLE WASH.
Head Office
for Canad.
, Hamilton, Ont. As
sets over $1,700,000
Writin
g Fire Insurance at C
ost ,
All Pc
licies div
dend paying and no
n-assessable.
NORMAN S.
JONES, M
anager K. J. .MAHONV, Ass't Manager i|
Always After Agents
FOR
Fine Fields
Considerable desirable territory is open for negotiation with
men who would make capable and alert representatives.
Union Mutual Life Insurance Co.
Portland, Maine
Address: ALBERT E. AWDE, Supl. of Agencies
E. J. ATKINSON. Manager (or Ontario,
303 Manning Chambers, 72 Qu
I St. West, Toronto, Ontario
WALTER 1. JOSEPH, Manager for Quebec and Ea.lern Ontario,
414-415 Dominion Express Building, Montreal, P.Q.
THE MONETARY TIMES
Volume 66
News of Municipal Finance
Swift Current is in a Difficult Position— Expert Suggests Changes in Assessment and Taxa-
tion Methods as Well as a Number of Adjustments in the System of Administration —
Winnipeg Sinking Fund Report Shows Healthy Condition — Spitzer, Rorick and Company
Protest Against Withholding of Tax Arrears--City Would Lose Large Sum by Remitting
THAT the exact financial standing of the city of Swift
Current, Sask., should be immediately displayed to the
creditors rather than wait until the city is compelled by force
of circumstances to repudiate its obligations, is the opinion
of O. J. Godfrey, of Regina, municipal expert, who was called
in by the Swift Current city council to make a comprehen-
sive survey of the civic administration. Mr. Godfrey has
completed his report and recommends a series of compromises
between the city and its creditors, some important changes
in assessment and taxation methods as well as a number of
adjustments in the system of ■ administration.
Swift Current h&s not defaulted in meeting debenture
interest payments up to the present time, but the adjustments
recommended are absolutely essential if the city is to be able
to continue to meet its obligations and to handle its utilities
with advantage to both citizens and bondholders, in Mr. God-
frey's opinion. With reference to outstanding debentures,
it is proposed to call these in and replace them with five-
year debenture stock, repayable in 45 years. The total
amount involved is $1,632,158. It is proposed to make the
debenture stock bear interest at 4 per cent, for the first five
years, 4^2 for the second five years and 5 per cent, for the
third five years. Provision is made for existing assets in
the sinking fund to be turned into cash and held in trust for
capital expenditure, subject to the approval of the Local
Government Boaa-d and for an annual levy for a sinking fund
of $17,170 for the period of the debentures after the lapse of
the first five years.
For the first five years the city will have to pay an-
nually $65,286 and in Mr. Godfrey's opinion that is about the
limit which could be spent for that purpose. Thereafter, it
is stated, proposed new installations for utilities will give
them an increased re^'enue producing power and this, coupled
•with other increased revenues, would enable the city to pay
the' sinking fund charges. Mr. Godfrey declares the tax
burden is unequally and unfairly distributed. Business
assessment is too low and land assessment far too high,
■and he advocates a thorough reassessment. He found that
there had been no check of the tax rolls for three years, and
he did not see how the auditors could, as they did, certify
to the financial statements during that period.
It was also found on examination of the debenture state-
ment that the city and the school board have been in default
since 1916. This would have been apparent to the bond-
holders five years ago if the debentures had been on the an-
nuity or instalment plan. The city owes the Canadian Bank
of Commerce and the Union Bank approximately $151,000 on
hypothecation of tax arrears. It is suggested that the unpaid
taxes be treated as trust for the two banks in proportion to
their claims and that the banks be asked to accept city
stock to cover the deficit on tax hypothecations. Mr. God-
frey bases the city's troubles on "varying policies with re-
gard to large expenditures in the past." He states that the
city is not in the dry belt, the crop average of the district
for the past six years being almost up the average of the
whole province, and for this reason confidence should be re-
established, provided the citizens keep faith with their
creditors.
Lethbridge, Alta. — Civic utilities made a much better
showing last year than they have done for many years past,
according to figures given out. The operating surplus of the
waterworks department was $11,141, surplus of electrical
department $11,498, and city mine surplus $107. The street
railway had a deficit of $2,166.
Taber, Alta. — The Taber irrigation district reports that
it has no deliquent tax roll, which speaks well for the irri-
gation projects in western Canada. Taxes of the district are
due and payable on December 15 of ea<:h year, and the total
amount of taxes payable for 1920 was a little over $25,000.
By December 15, over $19,000 had been paid and the re-
mainder was in the hands of the secretary-treasurer by Feb-
ruary 12 last. A surplus of $8,000 is being carried over and
the district is in excellent financial circumstances.
Regina, Sask. — The legality of the city's refusal to pay
interest coupons at par of exchange on the city's sterling
bonds payable in London and Canada will be tested in the
courts. Through its solicitors, Malone, Malone and Long, the
Toronto General Trusts Corporation, Ltd., has notified the
city of its intention to take action. The city has agreed to
the proposal of the corporation's solicitors for a stated case,
but has rejected an additional proposal that both sides should
waive their right of appeal from the verdict. The city is
also stipulating that the proposed stated case shall be argued
in Saskatchewan. The interest payments in respect of which
action is being brought were due on March 1 and September
1, 1920.
Calgary, Alta. — Spitzer, Rorick and Co. are protesting
against the action of the city treasurer in holding back the
$350,000 of collected tax arrears, which are to be applied
against the $1,500,000 treasury notes which were purchased
and distributed by the Toledo bond house in 1919. Members
of the finance committee are unable to understand the anxiety
of Spitzer, Rorick and Co., for immediate transmission of the
funds so collected. Under the terms of the by-law by which
payments on the loan were to be held strictly in trust by
Spitzer, Rorick and Co., until maturity of the five-year treas-
ury notes in June, 1924, and then used to- pay oif the notes.
The only difference between forwarding the funds as collected
to Spitzer, Rorick and Co., and holding them in Canada, is
that the city ti-easurer is acting temporarily as trustee of the
collected arrears of taxes, instead of Spitzer, Rorick and Co.,
as the agreement calls for payment of 3 per cent, interest
on the funds, and that is now being credited to Spitzer,
Rorick and Co. by the city, while holding the funds in Canada
awaiting a more favorable turn in the exchange rate. Fur-
ther negotiations will be carried on with the financial firm
to ascertain if the funds cannot be temporarily invested in
Alberta provincial notes to pay a higher rate of interest, 5
per cent., pending better adjustment of the exchange rates.
Winnipeg, Man. — After reviewing the report of the
sinking fund trustees, it is not hard to understand why Win-
nipeg always receives such good prices for its securities, when
it has occasion to enter the market for funds. The business
transacted by the trustees has been compared with that done
by the directors of a fair-sized mortgage company, and by
careful management the board has been able to show a large
surplus over the needed returns, and these have been used
to retire obligations for which no special provision has -been
made. ,
The report sets forth assets in the fund amounting to
$11,724,062, which, dedeucted from the gross debt on the
same date, leaves the city with a net debt of $31,790,866.
The net debt of the city on April 30 last, amounted to $29,-
300,428, showing at the end of the year an increase in the
net debt of $2,490,438. The total received by the trustees
from all sources in the eight months amounted to $5,704,822.
This sum was applied: City debentures maturing, and re-
demption of stock purchased and cancelled and accumula-
tion in respect of stock conversion, $814,293; investments
made during the period, including accrued interest to date
February 25, 1921
THE MONETARY TIMES
49
C.P.R. BUILDING
TORONTO
nOUSSERWOOI>v<°G>MPANY
INVC«TMCNT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
REAL ESTATE
Lands
City Prof)erties
Building Management
Rentals
OSLER, HAMMOND & NANTON
WINNIPEG
NEW ISSUE
City of St. Catharines
6 „ COUPON BONDS
Maturities : 1922-1926
Principal and semi-annual interest (April 20
and October 20) payable in Toronto or St.
Catharines; denomination $500 and $1,000.
PRICE TO YIELD 6.40%
Harris, Forbes & Company
rNCORPORATXD
C. P. R. Building 21 St. John Street
TORONTO MONTREAL
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur BIdg., WINNIPEG, Canada
Members of Winnipeg Real Estate Exchange. Winnipeg Stock Ejcchange
C. H. BURGESS & CO.
Government and
Municipal Bonds
14 King Street East
Toronto
WINSLOW & COMPANY
Stock and Bond Brokers
GOVERNMENT AND
MUNICIPAL BONDS
INDUSTRIAL SECURITIES
300 Nanton Building, Winnipeg
Exceptional —
-both for safety of principal and surety of
return is this
7% Canadian Industrial Bond
with a bonus of Common Stock payable in New
York funds.
Ask us for full particulars
R. M. HEFFERNAN & CO., Limited
li\VESTME.\T BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
50
THE MONETARY TIMES
Volume 66.
of purchase, $4,157,416; salaries, etc., and general adminis-
tration, $15,590; cash in bank at December 31, $717,521. The
total assets at the credit of the sinking fund, including in-
terest accrued on investments a* at December 31, amount to
$11,724,062. This is an increase of nearly $1,500,000 over
that reported in the last statement. The average interest
earned for the period was 6.2577 per cent.
The report points out that "in accordance with the adopt-
ed policy the investments purchased at a premium have been
written down to pra- value, while investments purchased at
a discount are included at cost. The par value of the bonds
and debentures held by the trustees is $937,265 in excess of
the value at which they are taken in on the balance sheet,
and this may be regarded as an additional reserve re&lizable
at maturity of the respective debentures. Possible deprecia-
tion has been provided for." Under the head of income ac-
count, the repo'rt states that the gross income received or
accrued, and profit C'Ccruing on maturity of securities paid
off during the year, less loss on sale of investments, amounted
to $1,093,155. Of this, the amount to meet the requirements
of the sinking fund as against outstanding city of Winnipeg
debentures was $681,748. This leaves a balance of $411,407,
which represents excess earnings over and above these re-
quirements. Against that surplus the trustees place the total
administration and general expenses of $15,590, and pre-
miums on investments acquired during the period now written
off, amounting to $10,368. These deductions leave to be trans-
ferred to surplus income account $385,448. But the trustees
had a bf.Jance as at May 1 last, of $44,516. So that the net
surplus income amounted to $429,964.
This surplus income has been appropriated: $50,000
transferred to investment reserve account, which now stands
at $350,000, representing approximately three per cent, of
the book v&lue of the investments, $195,921 has been appro-
priated and applied to the credit of the city in order to com-
mute and do away with any further genei'al levies upon the
taxpayers for these by-laws: Industrial exhibition buildings,
$120,000; old Osborne bridge, $2e>,000; school board claim,
$92,000; and general hospital, $160,000. And $100,000 has
been set aside to reduce the liability of the city to the civic
pension fund. Taking into account these appropriations, the
surplus out of surplus income earnings, was $84,042.
Government and Municipal Bond Market
Toronto and Guelph Received Good Prices for Their Securities — Bidding was Keen— Alberta
Will Aid Irrigation Districts to Dispose of Bonds— Policy of Government Has Not Yet Been
Definitely Announced, but is Pretty Well Understood — Several Municipal Issues Pending
A GOOD illustration of the demand for high-grade muni-
cipal securities is seen in the sale o£ Toronto and
Guelph bonds this week. At 6.12 per cent, the latter city made
a good bargain, and there was very keen bidding, with no
less than twenty-two offers submitted. Considering the size
of the issue, Toronto closed a highly satisfactory deal, and
it is understood that before the public offering was made a
large part of the bonds was spoken for. Any municipality
whose credit is of the best can get the best of prices on the
market, as there is a good supply of funds for investment
securities.
Chilliwack, B.C., had to pay 7.40 per cent, for its money.
This is about the rate at which a number of municipalities
in the province are borrowing at. While recent financial
staten;ients indicate an iriiprovement in a number of
eases, it is felt by bond dealers and observant in-
vestors that there is room for further betterment of con-
ditions. The legislature is now in session and the government
is being pressed to relieve the situation. The greatest need,
according to the claims of the municipalities, is power for
broader taxation.
In reply to the report current in New York that the
Canadian government had started negotiations to refund the
$25,000,000 5 per cent, bonds, which mature in April next,
it was stated that the government has bought up and retired
already considerably more than a majority of the $25,000,000
maturity, and has completed arrangements to care for the
balance at maturity without refunding. That maturity is one- '
third of the $75,000,000 Canadian government loan floated in
the latter part of 1916 at a basis ranging from 5.10 per cent.
for the five-year bonds to 5% per cent, for the ten-year bonds
and 5% per cent, for the fifteen-year bonds.
There was a fair degree of activity in Victory bonds
during the past week, with slight fluctuations either way.
The following figures illustrate the recent trend of prices:- —
Control.
Last
week.
This
week.
price.
High.
Low.
High.
Low.
1922
98
99
981/4
98%
98
1927
97
981yi
99%
971/3
991/2
98%
99%
97
1937
98
98%
1923
98
99
98
98y2
97%
1933
96%
98%
98
98%
98
1924
97
96%
96
96%
96
1934
93
951/2
951/4
951/2
9514
The policy of the Alberta government in regard to the
Lethbridge Northern Irrigation District bonds, although not
definitely announced, is pretty well understood, and is being
favorably received in the west. It is proposed, in effect, that
funds up to the extent of 90 per cent, of the par value of
such bonds shall be advanced from time to time to the district
issuing the bonds to go ahead with the irrigation works. The
plan is for the government to assume no other responsibility
for these bonds other than holding them until such time as
they can be placed upon the bond market and sold at a
reasonable price. The cabinet members believe that the
action of the government in advancing the money on the bonds
and holding them for a good market, in itself will have a
tendency to improve the marketing price of the bonds. It is
obvious that, under such an arrangement, each case would
have to be decided on its merits, and an irrigation distinct
would have to go through the usual formula of organization
of a board and issuance of the bonds before it could come
before the government asking them to advance money on the
securities. The only district in such a position at the present
time is the Lethbridge Northern Irrigation district. It is
the belief that the day when irrigation bonds will be sought
by the investor is close at hand. In the past these securities
have not been very favorably received, but events which have
occurred of late are beginning to change the sentiment.
Coming Offerings
The following is a list of debentures offered for sale,
particulars of which have been given in this or previous
issues: —
Tenders
Borrower. Amount. Rate %• Maturity. close.
Transcona, Man $ 48,000 6 20-years Feb. 28
Pointe Claire, Que. .. . 130,000 6 Serials Feb. 28
Prescott and Russell,
Ont 100,000 6 20-instal. Mar. 1
Danville, Que 33,000 6 Various Mar. 7
St. Andrews R.M.,
Man 100,000 51/2 30-instal. Mar. 5
Trail, B.C 37,000 7 20-years Mar. 7
Drumheller, Alta. . . . 28,000 7 20-instal. Mar. 26
Prescott and Russell Counties, Ont. — The united counties
are calling for tenders until March 1, 1921, for the purchase
February 25, 1921
THE MONETARY TIMES
Use it—
That's what it is there for
We maintain one of the most ex-
tensive Victory Bond Buying and
Selling Organizations in Canada.
This has grown naturally, because
of the volume of our Victory Bond
transactions.
You may take it, therefore, that if
you wish to buy or sell Victory
Bonds, this department will serve
you well.
Telephone orders particularly solicited.
Wood, Gundy & Company
Canadian Paci,iic Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
■MHB«»«>itJt«ak^y.
^C^^^saas
l^SEEBB
IWYtSTWEHT-StRYIC;\
''Confidence"
The Canadian
Motto
Under this caption the current edi-
tion of investment Items gives sound
reasons why the Canadian business
outlook for 1921 should be viewed
with optimism.
Every business man and investor
should read Investment Items regu-
larly.
It will give us pleasure to add your name to
our mailing list.
i Royal Securities
^ ^ ^CORPORATION
U I 1-» I T- IE D
MONTKEAL
TORONTO HALIFAX ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. Eng.
\V L. .McKlNNON
DEAN H. PETTES
We Buy and Sell
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Covernmenl and Municipal Bonds
McKINNON BUILDING -:• TORONTO
Telephone Adelaide 3370
Government, Municipal
AND
Corporation Bonds
R. A. Daly & Oo.
BANK OF TORO.S'TO BUILDING
TORONTO
L-
VICTORY BONDS
All Maturities
Bought
Sold
Quoted
Rapid, Accurate
Service Guaranteed
PHONE MAIN 2093
W. A. MACKENZIE & CO.
Covcrnment and Municipal Bonch
Corporation Securities
42 KING STREET WEST
TORONTO - CANADA
THE MONETARY TIMES
Volume d6.
of $100,000 G per cent. 20-instalment debentures, the pro-
ceeds of which will be used for roads and improvements.
There is a total of $300,000 authorized, and the issue will be
made in three scries.
Sandwich, Ont.— The town has between $100,000 and
$200,000 of debentures for sale. No particulars are available,
but it is understood that the treasurer will negotiate for the
disposal of the securities.
St. Andrews Il.lVl., Man.— Tenders will be received until
March 5, 1U21, for the purchase of $100,000 SVa per cent.
30-year good roads debentures. The issue is part of an
amount of $187,642.49 legalized by the Manitoba legislature,
and the securities are guaranteed by the province. Deben-
tures are payable in yearly series. J. D. Foster, Clandeboye,
Man.
Debenture Notes
Brantford, Ont.— A debenture issue for the extension of
the municipal street railway is proposed by the Railway
Commission.
Stratford, Ont.— Several by-laws for local improvements,
.otalling $10,000, have been passed by the council.
St. Thomas, Ont.— The request of the municipality to
issue debentures for various purposes has been approved by
the private bills committee of the Ontario legislature, with
a few minor amendments.
Winnipeg, Man.— A by-law has been passed by the council
authorizing the issue of debentures to the extent of $1,250,-
000 for the following purposes: Nurses' home, $400,000;
Maryland bridge, $300,000; Winnipeg school district, $550,000.
Yorkton, Sask. — At a recent meeting of the town council
the town clerk reported that Malone, Malone and Long, bar-
risters, of Toronto, whose favorable opinion was required for
the bond dealers, desired another by-law passed in form
drafted by them covering total issue of $148,000 five-year
debentures, and the by-law was read three times.
Toronto, Ont. — The city council has passed a by-law
authorizing the issue of debentures for $5,000,000 to provide
funds on account of the acquiring and taking over of the
Toronto Street Railway. It has also been decided to apply
• to the legislature for an amendment to the Sinking Fund Act
to make it legal for the city not to pay off any principal sum
or to raise any money for sinking fund for the first three
years on account of debentures that shall be issued to provide
funds to pay for the Toronto Railway system when taken
over. In other words, the city desires to simply pay interest
on the bonds for the first three years and then to proceed
to retire a certain amount every year thereafter.
Bond Sales
Walkerville, Ont.— A block of $85,000 6 per cent. 15-
instalment paving debentures have been sold to W. A. Mac-
kenzie and Company at a price of 97.57, which is on about
a 6.35 per cent, basis.
Verdun, Que. — Societe Generale du Canada, Ltte have
purchased $150,000 eVz per cent. 5-year debentures of the
Riviere St. Pierre School Commission, Verdun, and are offer-
ing them at par and interest in denominations of $500 each.
Amherst, N.S.— The Dominion Securities Corp. has pur-
chased $40,000 6 per cent. 30-year serial bonds &i a price
which costs the municipality about .6.15 per cent. A short
time ago a bid of 96.23 was tui-ned down, so that the muni-
cipality has gained by the delay.
Chilliwack, B.C.— Pemberton and Sons have been award-
ed $46,000 6 per cent. 10-year debentures »t a price of 90.22,
which is on about a 7.40 per cent, basis.
Burlington, Ont An issue of $34,488 6 per cent. 20 and
30-instalment debeatures has been awarded to A. E. Ames
and Co. at 96.18, which is on about a 6.40 per cent, basis.
Tenders were as follows: —
A. E. Ames and Co 96.18
Wood, Gundy and Co 96.08
R. C. Matthews and Co 95.18
Brent, Noxon &nd Co 91.248
Fredericton, N.B. — The following tenders were received
on the $120,000 5 per cent, serial bonds of the city, of which
mention was made in this column last week: —
Royal Securities Corp 90.676
National City Co., Ltd 90.35
Dominion Securities Corp 89.27
J. M. Robinson and Sons, Ltd., Wood, Gundy
and Co., Ltd., and Eastern Securities Co.,
Ltd 88.50
Toronto, Ont. — Paying about 6.11 per cent, for its money,
the city has sold $5,037,000 6 per cent, serial bonds, maturing
in 30 instalments up to 1951, to a syndicate comprising
Wood, Gundy and Co., A. E. Ames and Co., and A. Jarvis and
Co., at a price of 98.94. Two other tenders were also re-
ceived as follows: —
Dominion Securities Corp., Harris, Forbes and Co.,
Inc., National City Co., Ltd., R. A. Daly and Co.,
and W. A. Mackenzie and Co 98.389
Osier and Hammond, R. C. Matthews and Co., and
United Financial Corp 98.111
Whitby, Ont. — Wood, Gundy and Co. have purchased the
$60,000 61/2 per cent. 30-instalment debentures of the muni-
cipality at £■ price of 101.193. Tenders were as follows:
McLeod, Young Weir and Co., 101.175; Dominion Securities
Corp., 101.138; R. C. Matthews and Co., 100.62; Turner,
Spragge and Co., 100.33; C. H. Burgess and Co., 100.23; A.
E. Ames and Co., 100.22; Harris, Forbes and Co., Inc., 100.127;
Dyment, Anderson and Co., 99.97; Brent, Noxon and Co.,
99.96; W. A. Mackenzie and Co., 99.08; Macneill, Graham and
Co., 99.03; United Financial Corp., Ltd., 98.55; A. Jarvis and
Co., 98.27.
Guelph, Ont. — A. E. Ames and Co. have been awarded
an issue of $175,000 6 per cent. 20-year debentures at a price
of 98.659, which is on about a 6.12 per cent, basis. The
following tenders were received: R. C. Matthews and Co.,
98.55; Wood, Gundy a.nd Co., 98.41 United Financial Corp.,
Ltd., 97.88; Harris, Forbes and Co., Inc., 97.827; Dominion
Securities Corp., Ltd., 97.758; C. R. Clapp and Co., 97.664;
C. H. Burgess and Co., 97.6217; National City Co., Ltd.,
97.617; McLeod, Young, Weir and Co., 97.597; ^niilius Jarvis
and Co., 97.57; Brent, Noxon and Co., 97.53; Zimmerman and
Malloch, 97.426; MacKay and MacKay, 97.379; W. L. Mc-
Kinnon and Co., 97.367; Sterling Bank of Canada, 97.3105;
Canadian Debentures Corp., 97.26; W. A. Mackenzie and Co.,
97.21; Macneill, Graham and Co., 97.03; .Stewart, McNair,
Reid and Co., 96.927; Housser, Wood and Co., 96.53; Im-
perial Bank of Canada, 96.143.
Milton, Ont.— The town has disposed of $34,000 6 per
cent. 30-instaiIment high school debentures to Hai'ris, Forbes
and Co., Inc., at 96.737. Following are the tenders received:
A. E. Ames and Co., 96.43; W. A. Mackenzie and Co., 96.17;
Wood, Gund and Co., 96.12; United Financial Corp., Ltd.,
95.90; Housser, Wood and Co., 95.857; Matthews and Co.,
95.73; W. L. McKihnon and Co., 95.692; C: H. Burgess and
Co., 95.21; Dominion Securities Corp., 95.148; Brent, Noxon
and Co., 95.147. The municipality pays about 6.32 per cent,
for its money.
COBALT ORE SHIPMENTS
The following are the shipments of ore from Cobalt
Station for the week ended February 11th: —
O'Brien Mine, 64,000; Mining Corp. of Canada, 87,985;
Coniagas Mine, 173,379; La Rose Mine, 153,098; Dominion
Reduction, 137,000; total, 615,462.
The following are the shipments of ore from Cobalt
Station for the week ended February 18:—
Dominion Reduction, 50,000 pounds. The total since Jan-
uary 1 is 1,501,490 pounds, or 760.7 tons.
McCallum and Sherry, Ltd., announce the opening of a
stock, bond, grain and insurance office at 702 Canada Build-
ing, Saskatoon. The firm are members of the Winnipeg
Grain Exchange, and correspondents of Logan and Bryan.
February 25, l;)21
THE MONETARY TIMES
53
$25,000
CITY OF HALIFAX, N.S.
Due Jul}) ht. 1953
% BONDS
De
ations, $1 .000
Principal and semi-annual interest pay-
able at Toronto, Montreal, Halifax.
ice : 92.85 and accrued interest
YIELDING G%
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX, N.S.
Western Municipal & School
Debentures
TO YIELD ' 2
6%
71%
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
INVITED
UNION TRUST BUILDING
WINNIPEG
Bureau of
Canadian
Information
TTHE Canadian Pa-
cific Railway,
through its Bureau
of Canadian Infor-
mation, will furnish
you with the latest reliable information on
every phase of industrial and agricultural
development in Canada. In the Reference Li-
braries maintained at Chicago, New York and
Montreal are complete data on natural resources,
climate, labor, transportation, business openings,
etc., in Canada. Additional data is constantly
being added.
No charge or obligation attacties to this service.
Business organizations are invited to make use
of it.
Canadian Pacific Railway
Department of Colonization and Development
165 E. Ontario Si.
Chicago
33S Windsor Station
Montreal
1270 Broadway
New York
GENERAL
ACCIDENT FIRE AND LIFE
ASSURANCE CORPORATION, LIMITED, OF PERTH, SCOTLAND
PELEG HOWLAND. THOS. H. HALL.
Canadian Advisory Director Manager for Canada
Toronto Agents. 8. L. .McLBAN. LI.MITBD
Ex:onomical Mutual Fire Ins. Co.
HEAD OFFICE KITCHENER. ONTARIO
CASH AND MUTUAL SYSTEMS
Total Assets, $97J,600 Amount of Risk, $28,641,000
Government Deposit, $50,000
Investment
Holders
Increase Your Income With Safety
We re.|uesl you to senW us
list o( your holdings.
without obligation, a
We may be able to suggest a
your income without decrea
method of increasing
ing your security.
Your Invcslrncnl Business
will he appreciated
Gillespie, Hart & Todd, Ltd.
Head Office Branch
711 FORT STREET, 414 PENDER STREET,
VICTORIA, B.C. VANCOUVER, B.C.
luiiMiiiiiiiiniiiiiiiiiniiiiiiiiiiiiiiiira
I Automobile— 1 920— Season |
1 Policies to cover ANY or ALL motoring risks 1
I ATTRACTIVE AGENCY CONTRACTS I
I British Empire Fire Underwriters |
I 82-88 Kins Street East, Toronto |
I I
aiiiiiiiiiii I iiiiiiiiiiMiimiiniinniiiiiiiiiiiiiiiiiiiiiiiiiiifliiininiininiiiniiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiim^^^^^^
CROWN LIFE
Unprecedented Growth in 1920
Insurance in Force $21,338,339.00
Cash Income (Net) 880.260.26
Policyholders" Reserve.. 2.650.323.00
1920
$25,745,826.00
1,030,614.05
3.159,136.00
Crown Life Insurance Co., Toronto
tgents wanted in u»rel>resenttd districts
54
THE MONETARY TIMES
Volume 6b.
CORPORATION SECURITIES MARKET
Liquidation of Paper and Canada Steamship Stocks Depressed
Canadian Exchanges — Howard Smith to Issue Bonds —
Cosgrave Brewery Shares Offered at Par
HEAVY liquidation in papers and in Canada Steamships
this week resulted in depression of most of the active
issues traded in on the Canadian stock exchanges. For a
short time past slight reaction had been in evidence and this
was stimulated by a continuance of the adverse influences
which have been at work upon the markets. There is nothing
to indicate, however, that the situation is very serious; in
fact, it is believed that events of the past week should be
beneficial in that they have removed the feeling of uncer-
tainty which wiis anything but healthy.
The announcement of the Canadian Export Paper Co.
of a drop in price for the second quarter for 1921, while an
influential factor, was not solely responsible for the depres-
sion in the pulp and paper stocks. A prominent broker
points out that the new rate is higher than any company
has had foi- any previous year, while it is the general opinion
that manufacturers can easily comprise on future prices
and suff'er but little.
It is now definitely known that Canada Steamships is
out of the British Empire Steel Corporation, but there is
the possibility that the company will be called upon to enter
into a working arrangement with the new enterprise, which
should be favorable to the company. The passing of the
quarterly dividend on common may have been in the best
interests of shareholders, but the market has interpreted it
as otherwise. Traction issues did not maintain their favor-
able position after their first show of buoyancy, and the past
week saw easiness in the section as a whole.
The liquidation of stocks which took place is illustrated
by the trading figures, which show that in Montreal the
turnover of list shares amounted to 97,834, as against 55,855
in the previous week, while in Toronto the turnover was
20,956 shares, compared with 26,229. Bond trading in Mont-
real was more active, being $1,964,350, compared with $1,-
297,650 previously, while there was an increase in Toronto
from $1,375,500 to $1,931,850.
New Howard Smith Financing
In view of the additional working capital required for the
increased tonnage which the plants of the Howard Smith
Paper Mills, Ltd., at Ci'abtree and Beauharnois will shortly
be producing, and the further extension of the plants them-
selves, a by-law has been drawn up by the directors creat-
ing an issue of $7,000,000 7 per cent. 25 year first refund-
ins mortsage sinking fund gold bonds, of which there is
presently authorized to be issued $3,500,000, of which amount
$1,000,000 will now be sold and for which a satisfactorj-
ofl'er has been received. Of the remaining $2,500,000 and
there will be in escrow to retire the total outstanding 6 per
cent, first mortgage bonds, $1,489,800; to be held in escrow
against balance to become due on timber limits, $500,000;
to remain in treasury, $510,200, leaving $3,500,000 to be
issued in accordance with the terms of the trust deed.
An ofl'ering is being made in Canada by the Dominion
Foreign Exchange Co., Ltd., Montreal, of bonds of the Paris-
Orleans Railroad Co., to the amount of 50,000,000 francs
The securities Dear 6 per cent., interest and are redeemable
at par, by drawings, not later than 1956. Principal and
interest are payable in New York, without deduction for
any French taxes, present or future, of held by non-residents
of France, and are guaranteed by the French government.
Coupons may be held for improvement in exchange for a
period of 5 years, when they become outlawed ; drawn bonds
become outlawed after thirty years. The price is $78.20
(Canadian currency) per 1,000 francs bond.
Stock Offerings
The Hudson Investment Co., Toronto, is offering pre-
ferred and common shares of the Tiger Tire and Rubber
Co., Ltd. The head office of the company is in Toronto and
the factory is at Belleville, Ont. The authorized capital
consists of $750,000 8 per cent., preferred stock ($50 par
value), of which $400,000 is to be issued, and $1,250,000
common stock (par value $25), of which $1,000,000 is to be
issued. Preferred shares are preferred both as to assets
and dividends and participate equally in dividends with the
common stock up to 10 per cent. The company has installed
all necessary machinery in its plant and expects to begin
active operations immediately on the manufacture of punc-
ture proof tires.
Geo. W. Hamilton and Co., members of the Montreal
Stock Exchange, are offering publicly an issue of the Cos-
grave Export Brewery Co., Ltd., head office, Montreal. The
capitalization of the company consists of 100,000 shares of
$10 par value. The new stock will be offered at par. The
company has no preferred issues, nor any bonded indebted-
ness. The company has been formed for the purpose of
operating the Cosgrave Brewery, Toronto, as a manufactur-
ing plant catering entirely to export trade. It is understood
that arrangements will be made as regards the listing of
the shares.
At a meeting of the directors of Canada Steamship
Lines, Ltd., in Montreal this week, the usual quarterly
dividend on the preferred shares was declared. No action
was taken in respect to dividend on ordinary shares of the
company, and, while the earnings of the year have been good,
the directors pursuing a consei-vative policy have decided
to conserve the i-esources of the company and to await de-
velopments on certain financial proposals now under con-
sideration to capitalize the greatly increased assets of the
company. This, when consummated, will, in the opinion of
the directors, be greatly to the interest of the company. No
details wei'e made public as to the nature of the financial
proposal referred to, but it has been common knowledge for
some time past that the mission of J. W. Norcross, president,
abroad was of a financial nature.
Dominion Foundries and Steel Co., Hamilton, Ont., in-
stead of declaring the usual quarterly dividend of $1 per
share on its common stock, has declared a dividend to be
paid in the common stock of its subsidiary, the Adirondack
Steel Co., in the proportion of one share of Adirondack for
evei-y five shares of Dominion Foundries held. It is appar-
ent that this course of action has been taken with a view to
conserving the company's cash resources at a time when
working capital is of importance, and inventories generally
are being marked down.
UNLISTED SECURITIES
Bid
Ask
Bid
Ask
Bid
Ask
Bid
A-Sk
I3i
Cuban Can. Sugar. ..pfd.
36
Loew's London com.
6 75
St. Lawrence Suga
r. 6's.
92
7B
85.50
Davies William 6-s
90
99
Manufacturers Life
170
200
Sterling Bank
107
lis
3=i
40
Dom. Foun. & Steel.com.
49
S3
Massey-Harris
98.. 50
Sterling Coal
.com.
19
23
89
95
Pom. lron&Steel5sl939
65
71
Mattagar^a Pulp... pref.
65
74
Toronto Carpet
.com.
90
8
12
Dom. Power pfd.
85
90
Mercantile Trust
90
100
Toronto Paper
..6's.
84
Burns. P 1st MtKe. 6's..
90
99
DunlopTire pref.
89
94
Merchants Fire
36
Toronto Power. 5's
0924)
87
9'2
75
6-s.
90
97.50
Mexican Nor. Power.. S's
9
vi.m
Trust & Guar
70.
15
27
Eastern Theatres. . . com.
n
16
Morrow Screw 6's
84
88
United Cigar Store
5 com.
.50
50
59
Goodyear Tire. . pref. . . .
66
76
Murray-Kay pfd.
6'2
7'i..50
.pref.
1.75
2 35
6's.
G'elph&Ont. In. (par $50)
Gunns. Limited pref.
65
72
80
Neilson.'Wm G's.
86
Western Grocers. .
pfd.
65
97
Harris Abattoir 6's
89
95
Nova Scotia Steel 6% deb
75
82
WhalenPulp
com.
16.50
20
Can. Westingiiouse
Can. Woollens preT.
Cockshutt Plow ..com.
•• .7%pref.
ColIinKwnodShipb'dg.b's
Crown Life Insurance...
104
93
96.50
^optd
47
76.50
Imperial Oil
International MUIing.6's
King Edward Hotel. ..Ts.
Lake Superior Paper. 6's.
Loew's. Buffalo com.
Peoples Loan & Savings.
Riordon . com. <new stk.)
" ..pfd.
R.Simpson pfd.
Southern Can. Pow.com.
9
5S
90
70
90
3.75
5
18
21
February 25, 1921
THE MONETARY TIMES
55
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Years
to uleld
7 to 7 'i %
We Specially Re
end these Bonds as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto BIdg. Royal Bank Chambers
EDMONTON CALGARY
The Bond House of British Columbia
WE ARE ;n the market for
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
A trip that will
be a revelation
to any Eastern Canadian
VISIT
The sights, scenes and experiences of
the transcontinental trip to
VANCOUVER
BRITISH COLUMBIA
the great Pacific outlet of the Dominion
— the fourth city of Canada.
A city that as a Tourist Resort— a Place of
Residence when you retire — a Business
and Industrial Centre — offers exceptional
advantages. '
An average year round climate of 51 degrees— no
extreme licat in summer or cold in winter.
In the centre of wonderful natural
beauty spots — Mountains, Forest
and Sea all within easy reach of
city's centre.
Hundreds of miles of scenic motor
drives— Golfing, HuntinR, Fishing.
THIS
Summer
See the Cr
ir Own Country —
at Canadian West.
Illustrated Folders describing Van-
couver-giving an outline of its
wonderful attractions —
FREE ON REQUEST.
Address Vancouver Publicity Bu-
reau (J. R. Davison. Mgr.l 330
Seymour Street, Vancouver, B.C.
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches— SASKATOON AND CALGARY.
Canadi.Hn Managers
Investment Corporation uf Canada, Ltd,
London Office: t Great Winchester St.. B.C.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
ACCOUNT BOOKS
Loose Leaf JLedoers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
LOUGHEED & TAYLOR, Limited
INVESTMENT SECURITIES
210 Eighth Avenue West
CALGARY
ALBERTA
P. M. LIDDELL & COMPANY
Inveslmenl Bankers. Fiscal Agents
Insurance Brokers
826-7-8 ROGERS BUILDING, VANCOUVER, B.C.
"^
TE have 430 good bu
/ portion of Alberta
sinesses for sa
Everything
e in
from
the central
a General
Store to a small C
onfectionery
If you want a busines
s in Alberta yo
u want us.
WHYTE &
CO., LIMITED
Busin
ess Brokers
111
Pantases Buildi
ng ■ Edmor
■ ton
Albe
rta
X
Vancouver District Property
Expert Estate Agents and Managers
Property Bought and Sold, Valued, Rented and
Reported on. Correspondence invited.
WAGHORN GWYNN Co., Ltd. v...
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
MOXTKKAL— WfCk Knded Feb. -iSnl.
(Figures supplied by Burnett & Co.)
Sluckii
AbitibiP.AP
Asbestos Corp
ptd.
AmeS'Holdcn pfd.
Atlantic Sugar
■■ ...pfd.
Bell Telephone
Brazilian T.L. & Power
B.C. Fish
Brompton Pulp & P..
Canada Cement
...pfd.
Can. Con
Canadian Cottons
■ ...pfd.
Canadian Car
■■ ....pfd.
Canadian Gen, Elec...
C. P. R
Can. Steamship
■' ■• ptd.
•• " .., deb.
•' " Vot. Trust
Con. Minings Smel...l
Sales Open High
I Res
St. Lav
St. Ma
Sherw
Del Rys
Dom, Canners
Dom. Coal pfd.
Dominion Bridge
Dom. Iron pfd.
Dominion Glass
■• ..pfd.
Dom. Steel Corp
..pfd.
Dominion Textile
■■ ..pfd.
Howard Smith
. pfd.
Illinois Traction ..pfd.
Kaministiqua
Lake of the Woods
Laurentide
LyallCons
MacUay pfd.
Macdonald Co
Maple Leaf Milling
Mont. Cottons
" pfd.
Montreal Power
Tram
" ..Deb.
Telegraph...
National Breweries....
Ogilvie Flour Mills ....
pfd.
Ottawa
Penmans
pfd.
Porto Rico
Prov. Paper
Quebec Ry. L. H.&P..
Riordan Pulp* P
•• ..pfd.
!F1. Mills.
urice pfd.
■in Williams ... .
" -pfd.
Shawinitlan W&P ...
Spanish River
•■ pfd.
Steel Co. of Canada...
• ■■ ■■ pfd.
Toronto Ry
Tooke Bros
WayagamacU P.& P..
Winnipeg Ry
Kaiiks
Commerce
Hochelaga
Imperial
Merchants
Molsons
Montreal
Nationale
Nova Scotia
Royal
Standard
Toronto
Union
Rnnil.«
Bell Telephone Co
Can. Car
Can. Cement
Can. Rubber ..
Cedars Rapids Mfg... .
City Mont. Dec. 6's.l922
" May6's, 1923
■' Sept.6's.l923
Dom. Can.W.Loan,I925
1931
1937
Victory Bonds. 1924
1934
1922
1927
'■ " 1937
1923
1933
1070
6314
3408
20j
1000
9230
3501
21811
91852
12200.S
94141
21908
117827
50335
6098!
30J
106* I 1064
334 ; 334
179* 1 79*
208 ' 208
170 ! 171)
MUSTHBAl— Continued.
Dom. Coal
Dom. Iron
Dom. Steel.. ..
Dom. Textile ..
Lake of Woods
Lyall
Mont. Power .
National Brewe
Ogilvie Flour,.,
Sales Open High Low
7000
3000
15000
Price Bros
Quebec Ry.L.H.&P..
Scotia
Sherwin-Williams. , . ,
Steel Co. of Canada..
Wabasso Cotton
Wayagamack P. & P. .
Winnipeg Elec
TOBONTO-Wcek Endeil t'eb. 2:(r<l.
.Stocks
Atlantic Sugar
Ames-Holden pfd.
Abitibi
Barcelona
Bell Telephone
Brazilian Traction. ..
Burt. K. .\
■■ pfd.
B.C. Fish
Can. Bread pfd.
Can. Car &F pfd.
Canada Cement
•■ , pfd.
Canners
Canadian Pacific R
Can. Gen. Elec
. pfd.
Canada Steamship
pfd.
City Dairy pfd.
Con. C.is
Crow^ .\e.,l
Dome
Dom, Tel
Duluth
Dom. Iron pfd.
Loco pfd.
Mackay Companies. . . ,
•• ...pfd.
Maple Leaf
■■ pfd.
N, S, Steel
.;u-(;l Prod..
Quebec R,L,H.
Sh. Wheat.
Smelters , ,
Spanish Ri'
Tooke Bros. . . ,
Toronto Ry
Tucketls
Twin City
Winnipeg Elec.
Banks
ilton .
Con
Don
Har
Imperial
Montreal
Royal
Standard
Union
Lonii and Trust
Col. Inv
Can. Land
Can. Perm
Ham, Prov
Ont. Loan
Toronto Gen, Trusts..
Union Trust
Konds
Can. Bread
Loco
Sales
Open
High
Low i
1 155
305
30S
29J
5
30J
■M
30J
1991
46
46
354
463
54
.54
5i !
15
107
107
1063
734
34i
106i
334 1
17
105
105 !
15
106
106
106
60
45
45
44f
14
'88
88
87
25
7li
S9S
7U
71
403
594
57'(
10
92
92
92
25
37
37
37
321
I34|
135}
134*
175
Kiel
107
1064
40
looj
lOOj
100}
3596
37 i
37J
28
328
69
69
«6
2
80
SO
8fl
80
1394
140
1394
25
SO
SO
50
2115
18.50
18.60
16. ,50
26
84
84
84
25
14
14
14
25
76
7b
76
10
86
86
86
431
77^
77iS
76
252
64
644
631
35
145
145
145
20
98
SSi
98
185
44
44
.!2
IOC
9.25
9.25
9.25
25
66
66
65 {
2t
100
100
1011
115
46
46
45
3C
78
78
74
1 S>
78
78
78
85
102
102
95*
35
,S71
S7ii
873
:!4.S
27 ,i
28
26*
u
54
54
54
8
87
87
87
6f
75
75
75
55
13
13
13
101
53
53
SO
7C
128
128
125
75
20
?M
184
1256
77^
77S
71
127
88
884
S4i
1 I03C
4Sl
484
45
i 137
63i
63}
61*
1 42
93
93
924
10
78
78
78
1005
71li
7lf
684
25
.-0
.iO
494
130
46
46*
46
118
46
464
45
161
188 J
188i
1871
18
201
201
200
29
ISOii
180*
180*
30
187
187
187
35
209i
2094
2091 i
20
201
201
200
III
200
200
200
21
158
1,-iS
157
25
77J
77S
77iS
25
135
135
135
135
180
180
180
45
HO
140
110
26
120
120
1194 1
90
161
161
160 )
25
200
200
200
35
105
105
100
800
86
86
86
6000
89
89
88
moo
78
79
69
25000
80i
8"}
80
'200
85
85
85
TORONTO— Continued
War Loans
Dom. Can.W.Loan. 1925
1931
1937
Victory Loan 1922
1923
1927
1937
" • 1933
1934
1924
Sales
Open
High
Low
93?
11300
94
94,t
4600
93*
93*
93
20300
97}
98i
97
67900
984
98
52250
98i
984
97}
27550
98
98J
97
i-.'STCmi
996
99}
HSA
105750
98g
98}
98
306200
95i
954
9Si
87350
964
961
96 i
WINNIPRCi-Wcek ended Feb. lOlli.
Victory Loan 1922..
•• 1923..
■■ 1924..
■• 1927..
" 1937..
'■ 1933..
" 1934.
War Loan 1931 ....
1937.. .
1925 . . , .
: Investn
North Star Oil pfd
Western Grocers
Union Bank
Sales
Open
High
99
Low
98}
32350
98?
27800
982
98ij
98J
2801/
96S
flfiS
96*
7900
984
98*
97}
5850
99}
99,4
99}
28650
98}
98}
98*
303,';C
95*
954
95
2000
94
94
93}
200
97}
97,1
97}
2
106
106
106
500
360
360
360
10
72
72
72
IS
156
156
156
NEW VOKK— Week ended Feb. I»lh.
Sales Open High Low Close
Canadian Pacific i 1 1600
Canada Southern
Nova Scotia S.& Coal.: 1300
Granby Consolidated . 500
lEond.s I
Dom. of Can. 5% 1921 199000
5*% 19211 51000
5% 19261 23000
5*% 1929' 78000
5% 1931 12000
LONDON, Eng.— Week ended Feb. 5th.
Gov*t. «(: Mini.
Sales Open High Low CI
Nfld.34%bds ,,
'■ 4% 1936,
Manitoba 4% deb, IS
Montreal 4*% Keg,,
4% Reg
Moose Jaw 57o deb , , ,
Quebec 4%. 18K8
'• 4*% Reg
S. Vancouver S% cons.
Toronto 4% deb. 1936. .
Victoria 3*% 1921-6...
3*% 1923
•• 4% cons
•• 54% cons.
Vancouver 4*%
Winnipeg 41% 1940.60 .
4% cons. 1940
UallM'aTK
Can. Nor. 4% deb. 1939
" Ont.34%db.'.38
" Pac.4%deb.
Can. Pac
" 4% deb.
" 4% pfd.
G.T.P. Br. 4?i bd 1939,
G.T.P.3%bds
G.T. P. 4%I955
Or. Trunk.... 4% guar
Gr. TrunkS% 1st. pfd..
Gr. Trunk S% 2nd pfd..
Gr. Trunk 4% 3rd pfd,.
Gr. Trunk 4% cons
Gr. Tr. West. 4% bds..
Ont. & Quebec 5% deb.
P.Gt.East.4^%deb.'42
Ind., Fill., Etc
Can. Cement 6% bd:
Can. Car 6% bds
Can. West Lumber 5%
Can. Gen. Elec
Toronto Pow. 4J% deb.
Can. Bk. of Commerce .
Bank Montreal. . . .
62}
February 25, 1921
THE MONETARY TIMES
57
LONDON LOAN AND SAVINGS CO.
Slightly less business is reported by the London Loan
and Savings Co. of Canada for 1920, mortgage loans amount-
ing to $1,936,245, compared with $2,066,936 in the previous
year. Interest on investments, rents, etc., amounted to $81,-
125, and out of this the usual 7 per cent, dividend was paid,
and $20,000 was transferred to reserve.
The capital of the company was increased from $888,321
to $891,383, while the reserve now stands sA $400,000, as com-
pared with $380,000 in 1919. Outstanding debentures have
been reduced from $963,458 to $668,911, but deposits have
increased by more than $142,000 to $948,762. Total assets
are now $2,930,936, as against $3,052,929 in 1919 and $1,-
916,249 in 1908.
MONTREAL LOAN AND MORTG.\GE COMPANY
Total income of the Montreal Loan and Mortgage Co.
for 1920, amounted to $132,689, as compared with $126,051
in 1919. Net profits last year amounted to $92,149, being
equivalent to 15.3 per cent, on the paid-up capital of $600,-
000. In addition to the usual dividend a bonus of one per
cent, was paid to shareholders, bringing the total dividend
payments for the year up to $78,000, compared with $66,000
previously.
Total assets of the company are practically unchanged
at $1,774,889, which included mortgages on real estate
amounting to $1,616,808, cash amounting to $20,168, and call
loans amounting to $79,334. Reserve fund stands at $800,-
000, against $700,000 in 1918.
MORTGAGE CORl'OK.A I lO.N OF NOVA SCOTIA
Mortgages held by the eonip?.'ny, according to the annual
report for 1920, amount to $952,869, a decrease from last
year of $3,522. The real estate held amounts to $4,821. All
the mortgages are repayable by instalments; thus the securi-
ties of the company are constantly improving. The instal-
ments have been wsll mat. Amounts received from borrow-
ers during the year on account of principal and interest on
the mortgages held was $318,534.
Profits for the year amounted to $39,243, from which
the dividend of 6 per cent, on the capital was paid, and
$9,000 was transferred to reserve. Outstanding debentures
of the company amount to $250,071, a falling off for the
year of $19,976. Deposits at $34,678 show an increase of
$3,407. Total assets are now $1,319,535, being more than
four times the total amount of liabilities to the public. Re-
serve fund now stands at $134,000.
LAMBTON LOAN AND INVESTMENT CO.
An incre;..<G in bu.siness, but a slight decrease in profits
is shown in the annual statement of the Lambton Loan and
Investment Co., Sarnia, Ont. Mortgage loans at December
31, 1920, stood at $3,473,283, compared with $3,243,492 at the
end of the previous year. Deposits show an increase of $67,-
306 at $1,237,729, while outstrjnding debentures now amount
to $665,40(i, compared with $537,535 a year ago. Cash on
hand and in bank now amounts to $93,895. Profits last year
were $105,606, as against $114,735 for 1919,' but the usual
dividends were paid, $25,000 was carried to the reserve, K.nd
the other necessary provisions were made.
The Lambton Loan and Investment Co. is one of the
oldest mortgage and loan companies operating in Canada,
having commenced business in 1846. It has a p&id-up capital
of $789,750, a reserve of $825,000 and total assets of $3,587,-
689. The directors report that tlie collection of interest in
1920 was very satisfactory, and there is no resA estate on
hand outside of the office premises.
FOUNDERS
IN CANADA
O^
landii
founded the
Montreal.
Facing place d" Arr
which opened its d<
d'Armes in the City of Montreal stand
nt to Sieur de Maisonneuve who
near this spot in the year 1642
ttlement which is now the City a
;ment founded by M
spread to the east and
ninion of Canada extend:
I stands the Bank of Montreal.
■« for business a short distance
»ver one hundred and three
years ago.
From the Seld.
civihzation has
to-day the Dor
Halifax to V
Likewise the Bank of Montreal h;
after over a century of steady ar
process, it to-day has branches in all of the pitie;
and larger towns in Canada, with offices in th<
principal financial centres of the world, and
apondents in every country.
BANK of MONTREAL
Capital Paid Up $22,000,000 Reserve $22,000,000
ToUl A»eli $560,150,812.85
-"m"— 'wi^
IMPERIAL OIL, LIMITED
NOTICE OF DIVIDEND
Notice is hereby given that a Dividend of seventy-five
cents (75c.) per share in Canadian funds has been declared
by the Directors of Imperial Oil, Limited, and that the same
will be payable in respect of shares specified in any Share
Warrant of the Company within three days after the Coupon
Serial Number Seven of such Share Warrant has been pre-
sented and delivered to: The Royal Bank of Canada, Tor-
onto, Ontario, or at the office of Imperial Oil, Limited, 56
Church Street, Toronto, Ontario. Such presentation and de-
livery to be made on or after the first day of March, 1921.
Payment to Shareholders of record and fully-paid up
at the close of business on the twenty-fourth day of February.
1921, (and whose shares are represented by Share Certifi
cates), will be made on or after the first day of March, 1921.
The books of the Company for the transfer of shares will
be closed from the close of business on the twenty-fourth
day of February, 1921, to the close of business on the first
day of March, 1921.
Bv Order of the Board,
T. C. McCOBB,
Secretary.
56 Church Street, Toronto, Ontario,
February 24th, 1921. 452
$136,000 of premium income was written by the Royal
Indemnity Co., Toronto, in Ontario and Quebec from the time
it commenced business about May 1, until the end of the
vear 1920.
58
THE MONETARY TIMES
Volume 66.
CORPORATION FINANCE
(Continued from page AO)
stock outstanding, or equivalent to 30 per cent, on the aver-
age of year.
In his report to shareholders, C. Howard Smith, the
president, stated that sales ih the year increased to a marked
extent, and the company's product had a favorable reception
in the export ma^rkets. Combined sales of the company and
including those of the Toronto Paper Co., which has now been
included in the Smith oiganization and is no longer operated
as a separate company, amounted to $7,456,401, as compared
with $.3,744;859 in the previous nine months. Sales in 1916
were only $694,966. The balance sheet shows the company's
fiscal position with the Toronto Paper Co. included. Total
assets amount to $9,856,106, of which quick assets make up
$3,118,249. Quick liabilities amount to $1,360,528. Cash is
$149,662, accounts receivable $1,124,676, inventories $951,349,
accounts payable $931,415, bank debt $250,000. The accounts
reveal net working capital amounting to $1,757,720. The pre-
vious report for nine months showed total assets of $5,775,-
7-80, quick assets of $803,541 and quick liabilities of $331,987,
leaving net working .capital of $803,541.
F. N. Burt Co., Ltd. — Notwithstanding the fact that in-
ventories have been written down to replacement value, the
company is able to show profits for the year of $842,712, as
against $795,714 in the previous year. A balance of $984,857
has been carried forward, as comp&red with $713,044 at the
end of 1919.
The balance sheet shows few changes of significance.
As a result of the conversion privilege given to preferred
stockholders, in view of the increased dividends on common,
the capital account shows a reduction in preferred stock and
an increase in common. Preference shares amounting to
$420,200 were converted into common sha.res during the year.
Merchandise is shown at $1,186,587, as against $991,609 at
the end of the previous year, while plant, machinery, etc.,
are higher by about $100,000.
President S. J. Moore, in his address to the shareholders
at the annual meeting in Toronto last week, said that the
s&les for January this year were ahead of those in January
a year ago, and the prospects were decidedly good. Mr.
Moore pointed out that during the past five years the com-
pany had had profits of $2,808,000, and had paid out $960,000
in dividends, which resulted in keeping in the business $1,-
500,000 for extensions of plant and increased working capital.
In other words, the company had nearly doubled its produc-
tive capacity without calling upon the shareholders for any
additional capital. The profits during the five-year period
had increased each year over the preceding year. There was
every prospect of continuing the present dividend of 10 per
cent., which, being paid in New York funds, brings a return
of about 11% per cent to Canadia.n shareholders.
British Empire Steel Corporation. — The boards of the
IJominion Steel Corporation and the Nova Scotia Steel and
Coal Co. arrived at an agreement for the consolidation of
these enterprises, together with the Halifax Shipyards, Ltd..
under the name of the British Empire Steel Corporation, Ltd.
The agreements a-re subject to the underwriting of certain
securities, upon the completion of which the boards of the
companies will again meet for the purpose of approving the
underwriting and fixing the date when the agreements will
be laid before the shai-eholders of the interested companies
for their approval.
Col. Grant Morden, who has taken an active paa't in pro-
moting the British Empire Steel Corporation, stated in Lon-
don last week that the agreements constituting the corpora-
tion h^d been cancelled and new arrangements had been
made, the terms of which would be announced by the presi-
dents of the Dominion Steel Corpora^tion and of the Nova
Scotia Steel and Coal Co. "The larger objects of consolida-
tion," he said, "will all be attained on somewhat different
lines than those previously announced. The Canada Steam-
ship Lines, Ltd., if not included in the merger, will closely
co-operate in transportation."
The directors of the Halifax Shipyards, Ltd., have ap-
proved of the terms on which the enterprise is to enter the
merger, and, in common with the two larger enterprises,
will, in the course of the next ten days or so, formally sub-
mit the proposals before the shareholders of the Halifax
company.
American Sales Book Co. — A record year is reported by
the company both in regard to business transacted and profits
earned, which were much the largest in the company's his-
tory. Profits for the year were $602,679, an increase of 40
per cent., the figures a year ago being $427,237. With the
balance brought forward from 1919 of $270,851, a.nd $22,146,
United States Federal taxes on 1919 earnings paid in 1920,
there was available for distribution $851,384. Payments
of interest on bonds amounted to $28,921, reserve for
depreciation $130,658, and reduction of patent account $50,-
000, were practically unchanged from a year ago. Regular
dividends at 7 per cent, op preferred were also unchanged,
amounting to $215,131, but, in addition, there was a payment
on arrears of 3% per cent., amounting to $107,565. After
these appropriations, the balance carried forward this year
amounts to $319,107.
President S. J. Mooi-e I'eports that the inventories have
been written down to correspond with present market prices,
the shrinkage having been charged off on the year's opera-
tions. There remains the payment of United States Federal
taxes for the year, which cannot yet be accurately deter-
mined. Mr. Moore states that it is hoped to ma^ke a similar
payment on arrears of dividend on preferred during 1921,
the percentage still unpaid being 8%. "Although a falling
off in business was experienced during the last quarter, the
prospects are encouraging for a gradual return to normal
volume during 1921."
Even allowing for the writing down of inventories, the
company still reports merchandise valued at $654,208, as
against $444,664 a year ago. Accounts and bills receivable
are slightly higher at $582,367, compared with $515,942. Bills
payable are also higher at $407,315, as against $286,405.
Total assets are $5,630,536, increased from $5,369,800 last
year. The company's business is conducted entirely in the
United States, but its head office is in Toronto, and there
are a considerable number of Canadian shareholders. The
company's shares were listed on the Toronto Stock Exchange
last July.
Hollinger Consolidated Gold Mines, Ltd. — The profits of
the company for 1920 amounted to $3,792,341, as against
$2,321,290 in the year 1919, an increase of $1,471,051. The
company paid nine dividends of 1 per cent, each, amounting
in all to $2,214,000, which compares with total payments of
$1,722,000 in 1919.
The company wrote off $1,117,066, distributed as follows:
Plant depreciation, $445,985; capital development, $408,250;
donations, $1,959; investments in other companies and pro-
perties, $260,872. Deducting these amounts from the net
profits left the sum of $461,274 to be added to the balance
of $2,670,577 carried forward from 1919, and made the sur-
plus at the end of the year $3,131,852. The gold and silver
produced from the mine amounted to $6,939,628, which, with
$222,982 interest on investments and other income, gave a
gross income of $7,162,611.
"The return of 9 per cent, to shareholders during the
current year," said M. A. Timmins, president, "includes 4V2
per cent, return of capital, because the gold taken from the
ore is not replaced by anything, and the total value of the
property is thereby reduced by that amount. Comparing
mining with other forms of industry, the shareholder should
always bear in mind that the amount of his raw material is
limited and the capital value of his property is yearly being
diminished. Therefore it is essential that a part of this divi-
dend should be applied to the amortization of the capital
represented by his shares.
February 25, 1921
THE M 0 N E T AR Y TI M E S
59
iiiiiiiiiinii
1920 BIGGER THAN EVER
I The Northwestern Life Assurance Company |
m Head Office - Winnipeg, Man. |
m ANNUAL REPORT FOR YEAR ENDING DECEMBER 31, 1920 B
EXTRACTS FROM DIRECTORS' REPORT:
NEW BUSINESS— Applications received amounted to $1,860,350.00. The Policies actually issued totalled
$1,505,000.00.
A.SSETS — The Cash Assets of the Company show an increase of $171,747.35 and now amount to $602,101.4 1.
.\ssets of all kinds show an increase of $64,004.57, and now amount to $647,382.69.
LIABILITIES — Liabilities to the Public amount to $485,857.25, an increase of only $47,136.34, as against
the large comparative increase shown above.
I.NVESTMENtS— Now amount to $537,305.14, an increase of $166,119.08.
INCOME AND EXPENSES— The Company's Income as per Revenue Account amounted to $155,243.97.
while total expenditure was only $82,732.01, showing a surplus over all expenditure of $72,511.96.
MORTALITY — Death Claims were again extremely light, amounting to only $3,781.40 — only 15 per cent, of
the expected.
RESERVES — Our reserves for the protection of Policyholders are still on the highest basis of any Canadian
Company. These now amount to $230,756.75, being considerably greater than the reserves required
by the Dominion Government.
TOTAL RESOURCES— Amount to $1,522,382.69, an increase of $64,004.57.
* I J. F. C. MENLOVE, Pres. H. R. S. McCABE, Man. Dir. F. O. MABER, Sec.
:=: Total Revenue
FINANCIAL STATEMENT
JANUARY 1. 1(120. TO DECE.MBER 31, 1920.
REVENUE. EXPENDITURE.
$155,243.97 Total Ordinary Expenditure $ 82,732.01
Death Claims $3,781.40
Surrendered Policies 426.35
4,207.75
Surplus of Revenue over all Expenditure 68,304.21
$155,243.97 $155,243.97
=:i^i^^ LIABILITIES.
Resen-es * $230.750.T.->
Death Claim Pending 131.40
Victory Bond Account 250,000.00
Investment Account 2,360.73
Premiums Prepaid 1,798.18
Dividends Unpaid 351.20
Other Liabilities 458.99
$ 1,616.88
ASSETS.
Cash on Hand
Investment Securities:
Dominion of Canada War Loan
Bonds 319,300.00
Municipal and other Bonds and De-
bentures 27,311.43
Interest to December 31 3,340.30
Mortgages and Interest unpaid thereon. 116,894.93
Policy Loans 1,753.22
Premiums outstanding, less Commissions 24,454.13
.\ccounts Receivable — .\gents' Balances
and other Assets 33,628.83
Home Office Building and Equipment... 73,801.75
$602,101.47
Total Liabilities to the Public $485,857.25
Surplus to the Public 115,514.22
Surplus above $115,514.22
Capital Stock Paid 98,848.48
Shareholders' Surplus . . .
16,665.74
$602,101.47 ^
Certified Correct— W. G. SANBURN & CO., Chartered Accountants.
COMPARATIVE STATEMENT
1917. 1018. 1919. 1920.
Business in Force $.535,350.00 $1,212,300.00 $1,874,994.00 $3,179,968.00
Total Assets 216,134.95 398.946.02 583,378.12 • 647,382.69
Total Investments 134,588.95 297,325.27 371,186.06 537,305.14
Policy Reserves 23,935.00 72,351.00 147,133.00 230,756.75
TOTAL RESOURCES— Now amount to $1,522,382.69
II^NORTmjffiSTERM LIFE
ASSURANCE ^^ COMPANY
UFr.M»UW«„ M*f9w ^^^^^^
MJU.M<tAB£*«a-» ^^■'^ rOMABlRsrcrHAi ,-.-|
llllllllllllllllllllllllllllllll
THE MONETARY TIMES
Volume 66
RECENT FIRES
Car Sheds at Levis, Que., Sufifered Loss ol $300,000— Cahill
Block in Saskatoon Suffered a Loss of $200.000— Machine
Shop at Montreal was Damaged to Extent of $100,000
Billtown, N.S. — February 15 — The implement building on
the farm of Grant Lament was damaged by fire. The loss
is estimated at $4,000.
Campbellton, N.B.— February 21— The Maritime Lumber
Company's rotary mill at Rocky Green was destroyed by fire
with a loss of $00,000, partly covered by insurance.
Cowichan Lake, B.C.— February 22— The Riverside Hotel
was destroyed by fire. The loss has not been estimated, but
will be heavy.
Elgin, Ont.— February 23— The bakery of Messrs. Fer-
Ruson and Ferguson was destroyed by fire. An oven is be-
lieved to have caused the fire.
Fort William, Ont.^February 17 — Fire which practically
destroyed the Mona Block on Simpson Street caused damage
estimated at $15,000. The fire is believed to have started from
the explosion of a gasoline torch used by an electrician who
was repairing the wiring in a Greek confectionery kitchen.
Fredericton, N.B.— February 21— A fire, believed to have
been of incendiary origin, broke out in the Donnelly Building
at the corner of King and Northumberland Street, doing
damage estimated at $200.
Guelph. Ont.— February 17— The store at 156 Wyndham
Street, occupied by the Guelph Tire Sales and Vulcanizing
Co., was damaged by fire. The loss is covered by insurance.
Hamilton, Ont — February 23— The Orchard House wing
of the Ontario Hospital for the Insane was destroyed by fire.
The loss is estimated at $70,000.
Levis, Que.— February 21— Damage estimated at $300,-
000 was caused by a fire which broke out in the Levis County
Railway car sheds on Frazer Street.
Montreal, Que.— February 18— The building occupied by
the Montreal Machine Shop, Ltd., 481 and 483 Ontario Street
East, was destroyed with a loss of $100,000.
North Devon, N.B.— February 17— The residence of
Harry King was destroyed by fire. There was no insurance.
Ottawa, Ont— February 15— The wholesale fruit ware-
house of M. Raport, 62 George Street, was damaged by fire.
Ottawa. Ont. — February 17 — The stable owned by A. J.
Smith, 186 James Street, was damaged by fire. The loss is
$700. The residence of T. J. Doyle, 495 Somerset Street, was
damaged by fire to the extent of $500.
February 19 — The Joynt Block, at the corner of Welling-
ton and Sherbrooke Streets, was damaged by fire, with a loss
of $40,000 and insurance of $18,500.
Owen Sound, Ont. — February 20 — Fire in the general
store of Mike Sheyck caused $2,000 damage. The loss is
partly covered by insurance.
Pictou, N.S.— February 16— The Atlantic Milling Com-
pany's mill was destroyed by fire. The loss is $20,000, par-
tially covered by insurance.
Pittsburgh, Ont.— February 22— The outbuildings on the
farm of Mrs. W. McAdoo were destroyed by fire.
Regina, Sask.— February 21— The Hughes and Char-
bonneau Bakery, at the corner of Smith Street and Twelfth
Avenue, was damaged by fire.
St. John's, Nfld.— February 19— The Palace, the residence
of the Archbishop of St. John's, was gutted by fire. The
damage is estimated at $50,000.
Saskatoon, Sask. — Thirty families were rendered home-
less and damage of over $200,000 was effected by a fire which
totally destroyed Cahill Block No. 3 on Avenue A, near the
footbridge.
Stony Creek, Ont. — February 18 — The residence of Carey
Steeves was destroyed by fire. The loss is estimated at
$3,500, with no insurance.
Toronto, Ont. — February 18 — Rothsteins rag warehouse,
145 Elizabeth Street, was the scene of a fire that damaged
the place to the extent of about $2,500.
February 19— The Globe Theatre, 75 Queen Street West,
was damaged by fire. The loss is estimated at $1,500.
February 21 — A fire broke out in the Branston store at
353 Vi Yonge Street, doing $1,000 damage.
February 22 — Fire breaking out at the bottom of the
dumb waiter shaft in the building at 210 Adelaide Street West
did damage estimated at $35,000. The place is occupied by
the Dominion Waterproof Co. The junk factory of M. Grana-
stein and Sons, 482 Wellington Street West, was damaged,
with a loss of $1,000.
Travers, Alta. — February 17 — The Guy Paulson Building
and contents wei-e destroyed by fire. The loss is $20,000, cov-
ered by insurance.
Vancouver, B.C.. — February 15 — Fire, due to an over-
heated flue in a kitchen range, did damage amounting to
$10,000 to the Lodge Cabaret, Seymour Street.
Vancouver, B.C. — February 16 — A fire broke out in a
store and icehouse in the C.P.R. yards, foot of Drake Street,
with damage estimated at $8,000.
Waweig. N.B. — February 20 — The residence of Osiris
Nixon was destroyed by flre. The loss is $8,000, and the fire
was of incendiary origin.
Woodbridge, Ont. — February 20 ■ — Christ Church was
damaged by fire. The loss is estimated at $10,000, with in-
surance of $3,000.
Woodstock, Ont. — February 19 — The barn and contents
on the farm of the late Edwin Thornton was destroyed by
fire. The loss is estimated at $10,000, with insurance of
$7,500.
ADDITIONAL INFORMATION CONCERNING FIRES
Beaucevllle, Que. — January 25 — A store belonging to J. B.
Pauleu was destroyed with a loss of $20,000. There was in-
surance of $15,000 in the Strathcona, Dominion, Mutual and
National, of Paris, Insurance Companies.
Cooksville, Ont. — February 2 — Cement garage belonging
to W. J. Turner was destroyed by fire. The loss is $1,700.
with no insurance.
Hull, Que. — Januarj' 17 — The mattress factory belonging
to Mrs. J. B. Larose was damaged by fire. The fire was
caused from sparks from an electric motor. The loss is
$12,000, with no insurance.
Indian Lorette. Que. — January 30 — The factory owned by
Armand Bastien was destroyed by fire to the extent of $52,-
500. There was $24,000 insurance in the Mount Royal, Can-
ada Fire, National, of Paris, Stanstead and Sherbrooke, and
Dominion Fire Insurance Companies.
Oshawa, Ont. — Fire Chief Alex. C. Camerons annual re-
port shows that the total fire loss was only $7,000, with
eighteen fires. One fire alone in a business block might have
cost several thousand dollars. The chief ascribes the small
fire loss and few fires to educational propaganda and public
co-operation.
St. Mary's, Ont. — January 31 — The flour and feed mill
belonging to the St. Mary's Milling Co., Ltd., was destroyed
by fire with a loss of $13,000.
Tyron, P.E.I. — January 12 — A carriage, garage, black-
smith shop and paint shop belonging to Thos. McNeill and
Son was destroyed by a fire which was caused by the elec-
tric wiring. The loss is $10,500, with no insurance.
Vancouver, B.C. — The chief of the fire department shows
that during the month of January there were 86 alarms
turned in, with a total loss of $6,876. The following were the
causes of fires: Carelessness with cigarettes 1, chimney
fires 41, electrical origin 5, defective fireplaces 2, sparks 2,
spontaneous combustion 1.
ENGLISHMAN, 48, married, now office manager of
branch of an Eastern Trust Company desires management
of trust or other financial firm intending to establish in Van-
couver, Has sound judgrr.ent and a thorough knowledge of
accounting, finance, land values, investments, etc; good
mathematician; resident here since 1907. Position must offer
satisfactory inducement as well as ample prospects. First-
class references can be furnished. P.O. Box 854, Vancouver,
B.'C. 451
-.D KVKRV FkIOAY
The Monetary Times
Printing Company
of Canada, Limited
fj"The Canadian Engineer'
'.i^m^
\/>-y'- Q\ C--
Trade Review and Insurance Chronicle
of Cana&a
Established lS6'i
Old as Confederation
/ » '"^ .
JAS. J. SALMOND
President and Genei-al Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
%•. A. McKAGUE
Editor
Savings Deposits at New High Record
Increase of About Twenty Millions in January Establishes This Account at a Level Considerable
Higher Than Current Loans — Circulation and Call Loans Were Much Lower — Demand Deposits
Largely Reduced — Cash Position Improved, but Ratio of Liquid Assets to Liabilities Showed Falling Off
Year's Month's
January. 1920.
Deposit.s on demand S 621,408,021
Deposits after notice ... 1,16.3,297.037
Current loans in Canada 1.226,962,963
Currtnt loans elsewhere 182.533,124
Loans to municipalities 46,147,388
Call loans in Canada 132,015.334
Call loans elsewhere 170.206.805
Circulation 237.269.805
December. 1920.
January, 1921.
inc. or dec
inc. or dec
.S 657,496,742
S 584.025.710
— 6.4
—12.5
1,29.3,007,488
1.313.093.870
+ 12.9
+ 1.6
1,301,804.342
1.264.490.463
- 3.1
— 2.7
184,540.423
173.379.729
— 4.9
— 5.9
.55,973,926
59.637.682
+ 28.3
+ 7.3
114,703,246
112.474.318
—15.1
— 1.8
211.442.652
191.854,003
+ 12.3
—10.5
246.859,667
229,608.213
— 3.1
— 6.9
WITH a drop in current loans of about thirty-seven mil-
lion dollars and an increase in savings deposits of
about twenty millions, the first month of 1921 saw the return
to a more normal state of affairs in the lianking situation in
Canada'. It is many months since current loans have been
below notice deposits, and while the banks have demon-
strated their ability to take care of the requirements for
funds far in excess of the public's savings, the change is
regarded with a great deal of satisfaction.
The shrinkage in current loans was not quite so drastic in
January as in the preceding two months, but this was hardly
to be expected in that the recession of this account from the
abnormal level of last year has been well proceeded with, and
as general business conditions become more stable, even so
will the current loans become steadier. There is eJso the
possibility that banks are carrying manufacturers and farm-
ers over their difficulties in order to prevent them from
meeting with disaster.
Overdue debts showed an increase of about $300,000 for
the month. The change is not unusual for this time of the
year, a^ the delinquency is attributed largely to the agrarian
community. .-\ large number of loa>ns to farmers made last
fall are falling due about this time, and in view of the pre-
sent situation it is natural to expett some delays. The course
of the current and call loans in Canada during the past thir-
teen months is given in the following figures: — '
Current in Call in
Loans. Canada. Canada.
1920— January $1,226,962,963 $132,015*334
February 1,'257,015.902 127,251,119
March 1,322,267,030 128,233,310
April 1,347,238,230 125,644,859
May 1,349,079.981 119,114,493
.fune 1,385,151,083 115,272,587
July 1,377,276,853 115.360,894
August 1.385,470,153 113,598,923
September 1,417,520,756 114,669,611
October 1,405,401,227 113,135,902
November 1,357,973.118 108,471,340
December 1,301,804,342 114,703,246
1921— January 1,264,490,463 112,474,318
Call loa-ns in Canada were considerably lower in January,
as illustrated by the above figures, the demand for funds
for speculative purposes being reduced. The same situation
was also evident in call loans elsewhere. The monthly move-
ment of call loans abroad since January, 1918, is illustrated
by thp following figures:- —
1918. 1919. 1920, 1921.
140,819,656 170,206,805 191,854,003
155,983,681 184,469,882
160,116,443 205,202,133
155,533,666 206,229,451
157,176,325 213,964,182
167,236,045 219,214,431
178,098,434 203,045,209
174,176,578 193,888,245
169,532,489 186,962,960
158,194,085 188,367,459
169,626,880 218,183,194
172,232,161 211,442,652
January
. 132,687,066
February
. 160,239,494
Ma.rch
. 167,'296,701
.April . . .
. 179,818,531
May
. 172,259,879
June ....
. 170,034,476
July ....
. 167,112,836
-August
. 160,544,990
September
. 159,680,810
October
. 157,040,858
November
. 171,035,732
December
. 150,248,322
The following figures shows the course of the principal
loans account in recent years: —
Current loans Current lo&ns Call loans Call loans
Jan. in Canada. elsewhere. in Canada, elsewhere.
1916 ..% 758,500,492 $ 61,986,845 $ 82,584,659 $134,248,552
1917 806,479,147 85,989,511 79,737,064 155,747,476
1918 .. 855,506,506 116,220,343 76,239,201 1.32,687,066
1919 .. 1,080,340,861 126,513,338 87,598,427 140,819,656
1920 . . 1,226,962,963 182,533,124 132,015,334 170,206,805
1921 . . 1,264,490,463 173,379,729 112,474,318 191,854,003
The showing of sa-vings deposits over a period of one
year has resulted in the placing at the disposal of the banks
a larger amount of funds than a year ago: —
January.
On demand.
After notice.
Total.
1916
. . $387,002,926
$ 714,264,486
$1,001,267,412
1917
. 427,308,526
864,163,344
1,291,471,870
1918
. . 559,777,237
900,314,256
1,460,091,493
1919
. . 623,919,410
990,000,085
1,613,919,495
1920
. 621,408,024
1.163,297,037
1.784,705,061
1921
. .584,025,710
1,313,093,870
1,897,119 580
THE MONETARY TIMES
Volume 66.
Chartered Banks' Statement for January, 1921
LIABILITIES
NAME OF BANH
CAPITAL STOCK
Amount
of rest or
reserve
fund
S
Bank of Montreal 28.075,000
Bank of Nova Scotia 15.000.000
Bank of Toronto 10.000.000
The Molsons Bank 5.000.000
Banque Nationale | 5.000.000
Merchants Bank of Canada ' 15.000.000
Banque Provinciale du Canada.. 5.000.000
Union Bank of Canada 15.000.000
Canadian Bank of Commerce .... W.OOO.OOO
Royal Bank of Canada 25.000,000
Dominion Bank 10.000.000
Bank of Hamilton 5.000.000
Standard Bank of Canada 5.000.000
Banque d'Hochelaga 10,000.000
Imperial Bank of Canada 10,000.000
Home Bank of Canada 5.000.000
Sterlmg Bank of Canada 3,000,000
Weyburn Security Bank I 1,000,000
22 000,000
a,700,000
5,000,000
4,000,000
2,000,000
10,169,500
3,000,000
8 000,000
15,000,000
20,400,000
6,000,000
4.99S.800
3,854,700
4,000,000
7,000,000
2,000,000
1,266,600
655,700
22 000.00C
9,700,000
5,000,000
4,000,000
2,000,000
10,055.048
2.986,419
8.000,000
15,000,000
20,214 780
6,000.000
4,9
5.39C.
3,802.001
4,000,000
7,000.000
1.959.391
1.229,574
.524,560
197.075,000 129.045.300 128,460.163 133,343,590
S
22.000,000
I8.00O.0OO
6.000.000
5.000,000
2.300.000
8,400,000
1.300,000
6,000,000
15,000,000
20,174.395
7,000.000
4.694,195
4,800,000
4,000,000
7,500,000
500,000
450,000
223,000
Notes
circulation
deducting
advances
for credits.
pay-lists.
Balances
due to
Provincial
Govern,
ments
35,835,904
19,144,886
6,967,968
5,771,478
5.424,480
14,102.602
2.853.708
10.182.934
26.928,889
36,257,734
8,425,839
5,581,126
6.134,000
6.644,359
12 353,749
1,893,040
1,312,638
360.487
s
13.429.424
815,165
158,147
5.127,490
7,930,626
1,110.800
2,266 252
229,776
33,633,397
14,549,206
267,837
5,118,963
4,829,502
712,097
466.081
2.705,319
• 3,767.710
352.937
206,175,821 I 97.470,729
$
1,313,526
409.545
103,881
121,059
305.276
4,597,735
234,204
4,273,980
2,041,067
2,426,451
1,049,968
795,331
328,387
47,919
1,602,259
1,165,480
260,876
8,914
Deposits by
the public,
payable
on demand
in Canada
Deposits b)
the public
payable
afternotict
«
113,426,895
83,886,300
25,589,863
15,483,173
7,244,042
46,760,015
4,768,356
32,927,094
104,436.477
87,670,592
26,009,910
17,880,429
18,460,826
11,350,977
28,375.161
5,478.603
3,710.690
1,066,307
213,800,503
113 341,643
48,421,601
48,086,139
39,152,327
90,992,797
28,732.991
70,645,772
178,067,649
186,942,321
68,947.877
43,561,320
48,264,993
43.123,151
65,186,494
12',643,655
11,965,527
1.217,110
1,085,858(584,025,710 1,313.093 870 318,622.947
8,519,221
42,.599,871.
142.749,001
2,0S7.U0
LIABILITIES— Continued
Loans '
from other 1 Deposits
banks in 1 made by
Canada, ' and balan-
secured, ces due to
including otherbanks
bills re- 1 in Canada
discounted.
Due to
banks and
banking
correspond-
ents in the
United
Kingdom
Due to
banks and
banking
correspond-
ents else-
where than
in Canada
or the U,K,
Bills
payable
Accept
under
letters of
credit
Liabilities
not
included
under
foregoing
heads
Balances
due to the
Imperial
Govern-
ment
Total
Liabilities
Aggregate
amount of
loans to
directors,
and firms
of which
they are
partners
Average
amount of
current
gold and
subsidiary
coin held
during
the month
Average
amount of
Dc minion
Notes held
during the
the month
Greatest
amount of
notes in
circulation
at any time
during the
month
1
«
2,336.585
962,619
579,175
300,502
9,943
4,496,067
5,655
633,5JK6
263,451
2,604
592,118
92,361
1,393,754
2,927
1.372,174
14.559
205.405
124.910 1.799.631
50.304 1.826,512
S
2,088,566
665,921
«
6,285.827
350.049
182,938
320,173
7,805
1,090,926
S
1,433,714
16,302
1,124
567,557
9
' « ■«
472,920,650 | 865,106
202,496,719 1 1,074,286
.S3,399,I02 1 390,933
76.181,117 279,822
67,451,544 374,147
$ 1 S
26.023,187 40,415,992
12,090,743 19,731,719
1,018,416 ! 10,038,629
8
39,839,768
2
.1
1,394,400
313.529
21,156
4 SI. 820
48.863
3,774,121
6.2,33.080
11,743,985
1,482,760
7,920,900
4
9(*.oi3
32.871
5
450,000
104,840
407,975
4,041.271
139,879
1,041 812
20.948,000
15,728,529
4,010,575
9,368,624
225,436
9,988,217
26,692.000
23.466,653
11 044,0011
3,025,958
7,522.952
2.749.903
10.687.349
1.697 676
731,553
164,845
6
302,711
139,249
105,465
7
39,049,280
8
1 ,605,265
1,053,674
110,195
9,911
20 250
■1,609,385'
4,667,629
71,690
2,738.606
9.806,412
I 67fi 77J
11,571,069
9
406 680,453 : 1,121.838
504.611,144 700,606
10
11
17.4,54,357 [ 37,062
40.596.168
12
514,591
822,987
1?
22,058 i 818,784
4,112 626,212
j
81,075,294 441,220
62,757,479 ! 349,000
1.740,896
492,174
1,720,543
187.020
136,918
18.282
14
245,723
200,551
1.^
32,777
321,988
203,821
145,254
16
24,367,904 I 491,780
21,239,105 307,517
3,086,448 1 18,944
17
13,437
2,820
51,587
18
29.102
13,263.885
3,478,328
,31,363,045
9,658.031
40.976,659
3,165.477
2,642,380,435 | 10,229,001
89,287.807
184.660,803
229,608.213
Deposits Increase
The big drop in demand deposits, as a result of the fur-
ther heavy withdrawals by commercial and industrial con-
cerns, carried the total deposits very much below the figure
for the previous month. This is illustrated in the following-
figures: — ■
Deposits Deposits
on demand. after notice.
1920— January .$621,408,024 $1,163,297,037
February 620,069,55.5 1,187,027,307
March 657,412,028 1,197,719,570
April 652,918,760 1,209,573,990
May 645,957,229 1,229.073,515
June 659,622,583 1,243,700.977
July 639,415.025 1,253,170,443
August 640,361.707 1.261.647,732
September 677,286,905 1,270,194.097
October 687.651,781 1,271,275,751
November 686,754.094 1,292,009,008
December 657,496,742 1,293,007,488
1921— January .584,025,710 1,313,093,870
Cash Position Improved
C&sh assets showed considerable appreciation in Janu-
ary, but as call loans and bank balances were very much
lower, the ratio of liquid assets to liabilities to the public,
notwithstanding the fact that demand deposits and circulation
fell oflF largely, was reduced from 49.40 per cent, to 48.79 per
cent. The ratio of quick assets to liabilities to the public
was 23.58 per cent,, compared with 24.87 per cent, in De-
cember.
The following figures show the changes in the cash posi-
tion for the month: —
Gold and sub-coin in Canada , : + $ 324,991
Gold and sub-coin elsewhere -|- 2,105,461
Total addition + $2,430,452
Dominion notes in Canada 4- 9,101,809
Dominion notes elsewhere — 1,559
Total addition 4- $9,100,250
March 4, 1921
THE MONETARY TIMES
Chartered Banks* Statement for January, 1921
ASSETS
NAME OP BANK
Dominion Notes
Bank of Montreal
Bank of Nova Scotia
Bank of Toronto
The Molsons Bank
Banque Nat-onale
Merchants Bank of Canada ..
Banque Provinciale du Canada
Union Bank of Canada
Canadian Bank of Commercp
Koyi.1 Bank of Canada
Dominion Bank.
Bank of Hamilton
Standard Bank of Canada...
Banque d'Hnchelaga
perial Bank of Canada ...
mc Bank of Canada
Sterling Bank of Canada
VVeyburn Security Bank
$ 9 6
23,9'45.249| 2.052.159,25,997,408
8,873,7.|ll 3,301,712112,175.453
1.016.561) ! 1,016..S61
603.997 603,997
437,641 ! 713] 438.3.55
4,198.671 1,676| 4.200.347
161805 161,805
1,032,756 563.422 1 596.179
9,074,695 5,470,880! I4..545.,576
6.140.864 10.819,805] 16,960.670
2 125,U19 6S8l 2,125,678
928,883 ' 928,883
1.770.638 , 1,770.638
.506.770 5116.770
1,73S.K-H 1,738.879
193.2HS 193,298
13S,54:l 138..S49|
18,964 18,964
I I
62,906.980 22.21 1,025 85.1 18,010 l(6.S7l.0SI
»
s
e
46,324.391
5,509
46,329.900
16.6.38.599
5.745
16.644,344
8.881,977
s Ksl ,ii77
2,797,517
J T>'7 ^17
4.649.471
l.fl-' 471
9,443,755
't J4;v755
221. ,531
221„5:tl
12,625.222
866
12,626,088
21,329,676
5.187
21,334.863
24.092.681
1.169
24.093,850
9,272,043
9,2T2J)43
3,462,941
3,462,941
10.982.189
10,982.189
2.724.007
2.724.007
10..532,227
I0.ii32.227
1.374,802
1,374,802
1.0,53,973
1 ,a53,973
164,049
164,049
(6.S7I.0SI
18.476
186.589.527
1.038,1661 15.200.000
492,8221 II.. 500.000
254.834' 4.OOI1.0O0
235.000 1.. 500.000
100.000 4..5OO.O00
450000, 5.000.000
114.315
365.000 3.500.000
908.2451 ll.!)0C.0(l(.
860.000' I7 0.I0 0110
305.000' 3. .500,000
225,000 .500.000
175,00(1 2.400.000
200,000 2 600 000
381.665] 7.002,533]
108.000
6S.C00
22,196
ASSETS— Continued
Oomin'n
■~ ^ V c
Call and
Call and
Othtr
c
j
Bank
Liabili-
•overn-
Railway
short
short
current
>"o
Loans to
Mort-
premises
ties of
Other
ment
"•S^ «
and
loans in
loans
Other
loans
OS
Loans
cities.
at not
assets
and
n - a"^
other
Canada
else-
current
and
to
towns.
not
Pro-
^w— *•
bonds.
on st'cks
where
loans and
disco'nts
Pro-
muni-
than
under
included
Total
^lincial
|ffl.3^
deben-
debent-
than in
discounts else-
*'*o
vincial
cipalities
letters
under
Asset'
lovern-
tures
ures and
Canada
in ; where
£ ♦*
Govern- and
amounts
of
the fore-
ment
E S o «
and
bonds
(not ex-
Canada than
«s
ments
school
(if any)
credit
securi-
. " S-„
stocks
(not ex-
ceeding
30 days)
in
si
districts
written
as per
heads
ties
5 g^ c
ceeding
Canada
5
off
contra
UZ n u
SOdaysl
♦
S t
S
t
> »
t
•
•
•
«
»
S
$
t
(
1
14.782.565
34.303,263 4,677,907
1,707,001
99.249,021
20.3.404.098 16.889,IW
2.066.980]I2.244.377
5)8.025
4I.40(
29,621
5.500.000
6.2.<15.827
73.051
523.571,914
2
13.781.034
21,678.078 3.498„563
6.252,694
16,111,481
86,029.605 15,534,611
3,622.a3<
490.169
122.962
178,93;
6.069.513
3,50.048
220,665
231.899,757
7,l;2.78;f 6.75,574
1.000,000
5,2;f6,fl47
7.933,137' 899.118
4.174.2.36
37,092,544
1,027.980
28.600
3.5K..337
384. .520
1.741.246
7.805
71.540
72,612,255
t
8,,5W,fi7?
rl "I'J '>K^ '1 71^5 (7't
•< '(W •J.i4
5,126,457
105,469,460, 1.4l4,85i
1 ,842,054
1.360,806
615,644
683,95-
3.S69.409
1.090,926
261. .556
186..528,254
7
■J,HS^ l.M^
,, ^'"1 i" , .'11^^.''
^ •>'■ 1 "7;(
12,501.376
j 1,449,441
230.012' 7..50(l
14,345
388.478
291,802
43,642,670
t 7,,S'J,( 1 . ,
' 1 , ^ , 1 , , -A ' ■ , s V
' ', ' ">4
2,61.5,490
87,497,995 5,605 181
1,732,665 4,443,23!
215.3161 122.041
166,632
1,461.890
2 798,606
44.43:1
149,773,952
9 I3.jt;(l lU^
't :,, ^ M„. -. -I'll 1 .
■ ^- w
24,370,846
2%,8,59.364i30.8;O,94(
6,501.438
ll,484,43f
622.641 518.549
182 945
7,>09,.543
9,806,412
60.9.53
439,833,201
II 12.9JJ.JI1
_ii tM.i,,:,,. 1 1 ^ ' ' , ■'
. ;,,■ -'«
3«.497,I98
161.l77,436il02.028591
458.525
5.400,576
447,111 932,6.54
42.29(1
9.680,3,58
17,454.3,57
167,307
546.376,061
;i,i,iiii..sii; 1 Tsi - 1
6,I.,<9.5I6 11^-.,,.
,r 'i5
3,558.710
:<oo,ooo
63,fl59„584
49.542,757
1,048.653
6S8,99f
2.317.417
123,581, .5,393
203.633] 514.557
18,725
190.219
5,668,453
2,808,432
882.277
514,591
365,251
337.047
124.424.552
■> 2.42S,IIS'l
1.135,540
84.632.379
6,Sllv»73 ,^^.,..
5.579.9:17 IJ4.HI4
;_,~ ih4
4.4i4 .191
49,594,285
40.315.004
1.302„599
2.794,552
105.768
C33.282' 211.349
59,7.50
262,432
1,593.502
2.851,0;f7
822,987
245,723
92,733
88 588
90,183.979
4 2.218.867
71,257,628
5 6,028.815
9.949,494 413.047
1.392.849 1.610472
2,934,8.38, 384,114
23.5,964'
.3.72.5.142
1.172.549
121.189
1,004.800
59.697.515
r4.9.«..S31
7.359.716
1,900.728
762.000
6,802,216
253.124
.59,855
33.044
662.114 513.313
•221.913 63.444
6 837
131.750 26.371
436.227
99.047
2,750
18,279
2,802,659
5.212.755
1.013.811
506,072
203,515
200„551
13.437
657.535
204,443
281,085
62,819
125,930,689
6 1.696,929
24.788
26,924,218
7 9,236,569
23,141,241
g 277.905
3,801,246
9
1!)3405100
1 12.258205
46.398.296
113474318
191.854.003
1,264.490,463
173379729
12.675.149
59.637.682
6.908.4001
(.150,502
62 ..140.796
40,976,659
3,612,905
2.926,867,210
Of the deposit in Central Qold Reserves $11,503,533 is in gold coin: the balance is in Dominion Notes.
J. C. SAUNDERS, Deputy Minister of Finance.
Holdings of securities irtcreased slightly, reflecting the
falling off in the dem&nd for credit for commercial purposes.
Capital and Reserves
Substantial additions were made to capital and reserve,
chiefly by the Standard Bank, the changes being the result
of the recent stock issue. The following are the figures: —
IMMIGRATION INCREASING
Capital
Capital
subscribed.
paid up.
Reserve.
Merchants ...
.... $ 400
$ 25,426
600
18,090
249,508
? 9,040
260,630
Standard
. : . . . 302,207
Provinciale
49,550
Royal
50,820
25,410
Immigration to Canada, from April to
compared with that of the corresponding
w&s as follows: —
From Other
British. U.S.A. countries.
April 6,229 6,324 734
May 12,414 5,353 1,844
June 9,844 4,720 1,780
July 10,472 4,301 1,888
August 7,404 5,838 2,510
September 6,405 4,227 2,718
October 7,602 3,945 3,305
November 4,695 3,262 2,890
December 1,968 2,110 3,105
December, 1920,
months of 1919,
Inc. over
. Totals.
1919-20.
13,287
18%
19,611
92%
16,-344
lOd'/C
16,661
50%
15,752
4%
13,350
14,852
3%
10,847
34%
7,183
14%
Totals
$303,207 $393,394 $295,080
Totals
67,033 40,080 20,774 127,887 31%
THE MONETARY TIMES
Volume 66.
PROPOSES CENTUAL FACTORIES BUILDING
Plan of Winnipeg Board of Trade Would EncouraKe Small
Industries — Stock Exchanjje Offices Moved
(Staff Correspondence.)
• Winnipeg, March :!, 1921.
WINNIPEG and the west have been enjoying what has
prr.ctically been spring w'eather this week, and al-
ready reports have reached Winnipeg of one instance of seed-
ing near Regina, and also of ploughing having commenced
near Lethbridge on March 1.
Much has been heard in past years of the Hudson's Bay
Railway, the tracks of which are now scarcely anything but
.-streaks of rust; the road having to a large extent been al-
lowed to deteriorate. A new pioposal to parallel part of this
line, knowii as the Flin Flon Railway, is now being urged to
tap the large mineral aa-eas north of The Pas. Prof. R. C.
Wallace, commissioner for northern Manitoba of the pro-
vincial government, is sti'ongly advocating such a railway,
and, in his recent extensive report to the provincial legis-
lature, it is estimated that the building of such a railway
would permit a two-thousand ton a day extraction of valu-
able ore for 27 years, a-nd enable a population of not less
than 3,000 persons to make their living by working it. Prof.
Wallace's report can be taken as dependable. In addition,
he states that a large number of persons not connected with
the Flin Flon line itself wall be attracted to these regions
Just as soon as tr&vel becomes easy. The cost of the pro-
posed line is estimated at $2,500,000, and it is pointed out
that the Temiskaming and the Northern Ontario cost more
than $21,000,000, and yet has paid excellently because it
opened a mineral district. Prof. Wallace and others who
a^gree with him think that a railway from The Pas to Flin
Flon, a distance of 80 to 90 miles, would produce equal
results north of the Saskatchewan River.
Advises Building Railway
The report of Pi-of. Wallace is now in the h&nds of the
legislature, and concludes with the following recommenda-
tions: "I would respectfully recommend that the government
of Manitoba undertake the building of a railway from The
Pas to the Flin Flon property along the route followed by
the preliminary survey recently completed, at an estimated
cost of $2,.500,000; such undertaking being contingent on the
guarantee of the Flin Flon syndicate that the pvirchase of
the property will be proceeded with in March, 1921; that the
mine and smelter will be operated on the completion of the
railway on a basis of at least 2,000 tons of ore per day, and
that security will be deposited adequate to protect the gov-
ernment in the undertaking until such time as the mine and
smelter are in operation."
The pi-operty is at present under option to the Flin Flon
syndicate, composed of New York &nd Toronto capitalists.
After having spent large sums in proving the continuity of
the ore-body, they must decide next month as to what they
will do — either pay the first instalment of the pui'chase money
or relinquish their option. These in turn declare that their
decision hinges upon the action of the provincial government.
A Central Factories Building
The Winnipeg Board of Trade are advocating a. central
factories building for this city, stating in the organ of the
board, "The Community Builder," that no city in Canada is
in greater need of a central factories building than Winnipeg,
which stands to-da.y, it states, on the very threshold of a
great industrial era, with wonderful power and transportation
facilities at hand unequalled anywhere in the Dominion.
They also point out the very valuable raw materials, abund-
ance of pure soft water, and the cheapest hydro-electric
power and electric light in America, also a rich and grow-
ing market for the goods manufactured in such a central
factories building. The establishment of such a building
would be the greatest magnet for the attraction of small
manufacturers that could possibly be devised, and would be
a great advertisement for the city. They point out that
central factories buildings have received the warmest sup-
port from manufacturing concerns in American cities. In
one American city the central factories building has been
100 per cent, occupied for several years, during which time
a gref.'t number of infant industries have secured sufficient
strength to walk alone, and have erected plants of their own,
costing from $50,000 to $250,000.
The Winnipeg Stock Exchange headquarters have been
tr?jnsferred from the McArthur Building to much moi-e com-
modious quarters in the Montreal Trust Building. W. B.
Sterling is in charge of the exchange, being its hon. secretary.
The McArthur Building, corner of Main St. and Portage Ave.,
Winnipeg, has been sold to the Childs Restaui-ant interests
of New York, at a figure in the neighborhood of $800,000.
Messrs Allan Killam and McKa.y have been appointed man-
agers of the building.
NEW REGINA BOND HOUSE
Messrs. W. L. McKinnon and Co., Toronto, having closed
their Regina office at the end of the year, Clifton C. Cross,
who was their western manager, has now opened an office
under the firm name of Clifton C. Cross and Co., at 12 Canada
Life Building, Regina, Sask. Mr. Cross was for a number of
years with the Toronto office of W. L. McKinnon and Co.,
prior to taking over the management of their Regina office.
Clifton C. Cross and Co. will deal in government, municipal,
school district and rural telephone debentures.
OCCIDENTAL FIRE INSURANCE COMPANY
The 1920 report of the Occidental Fire Insurance Co.,
Winnipeg, shows that premiums, less rebates and cancella-
tions, amounted to $456,309, as compared with $.387,537 in
1919, an increase of $68,771. The amount paid for reinsurance
was $191,685, as against $156,450 in 1919, so that the net
premium increase is $33,536. This increase in business re-
quires under Dominion Government standard the reserve of
an additional sum of $24,419, making the reserve for un-
earned premiums $172,514, or 65 per cent, of net revenue
for the year.
Losses paid and unadjusted, less reinsurance recoverable,
amounted to $113,086, being 42.7 per cent, of net premium
income, or 47 per cent., after providing the necessary increase
in reser\'e. The ratio of expense to net premium income is
37.2 per cent., which is the same as last year. Net under-
writing profit is $28,639, which, together with net intei-est
returns from investments. $29,051, and the amount trans-
ferred from investment reserve to write up bonds to govern-
ment valuation $1,785, enabled the company to transfer $59;-
476 to the credit of profit and loss account.
Interest and principal repayments on mortgage loans are
reported as being well met. All debentures are being taken
into accounts at actual market value. The directors deemed
it advisable to continue the policy of building up a reser^'e,
and in consequence did not recommend the payment of a divi-
dend. The entire profits of the company, $59,476, were trans-
ferred from revenue account to the credit of profit and loss
account. The net surplus to shareholders now amounts to
$308,516. The directors also deemed it advisable for the com-
pany to underwrite hail insurance, and the necessai-y by-law
to permit this was submitted.
Lake marine insurance will go into effect .April 15,
which means that is the date officially set for the opening
of navigation.
March 4, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
of Canada
Address: Corner Church and Court Streets, Toronto, Ontario, Canada.
Telephone; Main 7404. Branch Exchange connecting all departments.
Cable Address : "Montimes, Toronto."
Winnipeg Office: 1206 McArthur Building. Telephone Main S409.
G. W. Goodall, Western Manager. .
One Year
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The Monetary Times was established in 1867. the year of Confederal
tion. It absorbed in 1869 The Intercolonial Journal of Commerce, of
Montreal : in 1870 The Trade Review, of Montreal : and the Toronto
Journal of Commerce.
The Monetary Times does not necessarily endorse the statements and
opinions of its correspondents, nor does it hold itself responsible therefor.
The Monetary Times invites information from its readers to aid in ex-
cluding: from its columns fraudulent and objectionable advertisements. All
information wilt be treated confidentially.
SUBSCRIBERS PLEASE NOTE:
When changing your mailing instructions, be sure to state fully both
your old and your new address.
All mailed papers are sent direct to Friday evening trains. Any sub-
scriber who receives his paper late will confer a favor by complaining to
the circulation department.
PRINCIPAL CONTENTS
Editorial : page
Conservation of Life Insurance Business 9
The German Indemnity y
The Grfeat West Bank of Canada 9
One Way to Lose Money 10
.\fter 5 P.M 10
Special Articles:
Financial Bills Before Parliament 14
Cfl-operative Marketing of Grain 18
Year of Contraction in Shipping 20
Federal Charter Overrides Provipcial Laws 30
Monthly Departments:
January Bank Statement 5
Trade of Canaiia by Countries 22
Montreal and Quebec Savings Institutions 22
Government Currency 24
Weekly Departments:
Insurance Licenses and .Agency Notes 20
News of Industrial Development in Canada 32
News of Municipal Finance 36
Government and Municipal Bond Market 38
Corporation Securities Market 42
The Stock Markets 44
Corporation Finance 45
Recent Fires 48
CONSERVATION OF LIFE INSl'R.WCE BUSINESS
THE GERMAN INDEMNITY
TO what extent will life insurance policies be resorted to
by policyholders who are faced with unexpected financial
<lifRculty? This question has been arousing interest in life
insurance circles for some months past. In the time of in-
flation and prosperity wage-earners may have committed
themselves to pay more in premiums than they will be able
to pay in more normal times. For instance, a man who
earned $1,000 a year and saved $100 a year in pre-war days,
may have been earning $2,000 and saving $200 recently; if
he commit."; himself to pay all of this margin in premiums
be would be in difficulty when pre-war conditions return.
The result might easily be a lapse of the policy, although
loans on policies to tide the assured over a period of unem-
ployment arc likely to be the first sjTiiptom.
Little or no increase in either policies or lapses took
place in 1920, a.* depression set in only in the later months
of the year. Several prominent life insurance men, however,
made their annual meetings the occasion of a campaign for
conservation. J. F. Weston, manager of the Imperial Life,
said: "All companies have experienced large gains in busi-
ness in force during 1920. Its true value will be determined
by the percentage of the abnormal amounts of new business
recently placed which will renew. Our two main sources of
surplus have always been excess interest earnings and sav-
ing in mortality. Another source exists which can be made
to contribute an amount equal to a considerable percent-
age of the other two. It rests in the reduction of lapses be-
low what the average company has persistently experienced.
There has been improvement in this direction in recent years,
but not nearly what is possible. It is most important to
companies and agents and greatly in public interest, that
the great waste incident to lapse should be further cor-
rected. We shall continue to gauge the success of a branch
or of an agent by the amount of persistent business they
secure and will never consider successful the one who gives
a large production followed by disproportionate lapse."
THE -AUks are seeking to impose upon Germany a war
indemnity of £11,300,000,000, exclusive of a tax of 12
per cent, upon German exports. Germany offers £2,500,000,-
000, of which they assert £1,000,000,000 has already been
paid in money and supplies. The Allies are therefore faced
with the unpleasant task of forcing terms upon an unwill-
ing people. The hope that reparation can be made for
damage done is false, for war is a luxury for which all
participants must pay. In war indemnities as in private
life it is more blessed to give than to receive, as was demon-
strated in the case of the huge indemnity imposed upon
France after the war of 1870.
Canada, at least, has little financial interest in the pre-
sent situation. We incurred no direct damage, and repara-
tion is therefore not due us. As for the cost of the war to
Canada, this is a bill which is being willingly met by the
taxpayers, and there has never been any responsible opinion
that it should be otherwise naid.
THF GREAT WEST BANK OF CANADA
A PURELY western bank, which "promises to become the
leaiiing financial institution of the Prairie Provinces,"
is the project described in a preliminary announcement of
t'l' Great West Bank of Canada, appearing in western
papers a few days ago. Originally mooted as a "Bank of
Saskatchewan," the plan was enlai'ged and the charter
secured last July in the name of the Great West Bank of
Canada. A prospectus was issued shortly afterwards, but
the actual offering of stock is just now made; details ai'e
given in Corporation Securities Market in this issue. The
Imperial Financial Corporation, then the Mutual Bond and
Securities Corporation which took it over, were mentioned
in connection with the financing, but the offering is now
THE MONETARY TIMES
Volume 66.
bein:? made by the General Bond Corporation. The president
of this corporation is W. A. Lamport, barrister, Toronto,
the director, W. R. Phillips, Regina, and the secretary-treas-
urer, J. K. McLennan, Regina, formerly a grain exporter
Oc Winnipeg.
While emphasis is laid on the western identity of the
new bank, the high market values of the shares of lead-
ing banks are quoted as illustrating the profits which may
be made in banking. The rapid growth and financial success
of the banks which are national rather than western has
been due in part to the pact that they have always been
able to lend where funds were most needed, i.e., in the most
profitable field, drawing at the same time these funds from
deposits all over the country. Emphasis is laid in the an-
nouncement on the fact that with other banks western
loans must pass the scrutiny of boards of directors in Tor-
onto and Montreal, "men not conversant with western con-
ditions and westei-n needs." The writer of this announce-
ment does not appear to be aware of the extensive powers
possessed by western managers, and superintendents
of Canadian banks. Moreover it is a well known fact,
though actual figures are not available to prove it, that the
loans of the banks in the west greatly exceed their deposits
there. It is therefore difficult to see how the western bank
can become sufficiently strong to bring about, as is alleged, _
"the advantageous pressure which the new bank will de-
velop in stabilizing the attitude and methods of the present
banks towards the public, which, to say the least, has been
faulty and unsympathetic in many instances."
In spite of this obvious hostility to existing institu-
tions, and the attempt to obtain subscriptions on the strength
of it, the Great West Bank does not call for opposition or
criticism. The Canadian field is large enough for the pre-
sent banks and more. If the new concern is soundly man-
aged, and the plan of capitalization at least is sound, it may
as a purely western institution achieve prominence if not
leadership. Though the announcement quotes in disfavor a
statement from the Toronto Mail arul Empire that "it
would he an injustice to the productive woi'k of the coun-
try as a whole to extend western loans beyond the season of
seeding to marketing of haiwest," it does not necessarily fol-
low from this that the management will be lax in main-
taining a liquid condition.
rest; no enlargement of the scope of the organization can
make it exhaustive. The new relation between employer
and employee does not become personal by such measures,
however expressive they may be of a desire to benefit.
AFTER 5 P.M.
THERE was a vast diflference between the employer of
the pre-efflciency days, who knew personally every one
of his employees, where he lived and how he lived, and the
heads of the great industries which were built up by the
co-ordinating of effort. This difference was chiefly one of
personal relations. The dominating industry of the 19th
century was the one in which there were no personal rela-
tions between employer and employee, the contract being
confined to the sale of labor for a weekly wage, terminable
at the will of either party and bearing no contingent re-
sponsibility.
In the financial as well as in the industrial field the
growth of business has severed the personal connection. But
just as industry has reacted against this mutual ostracism
by the establishment of welfare schemes, so also is finance
attempting to unite its employees by ties other than those
of daily employment. The pensions and sick benefits at first
adopted were but a step in the direction of the more com-
plete social program being proffered by large financial
organizations. The rest-room, the lunch-at-cost, the summer
outing and the annual dinner have become common in the
United States, and Canadian firms are rapidly following
their example.
Meritorious as this movement may be, representing an
effort towards mutual advantage, there are limits to its
practicability and advisability. The office must remain a
part of the office worker's life which is distinct from the
ONE WAY TO LOSE MONEY
LOSSES caused by the dishonesty of employees are often
greater than losses incurred by fire, and yet many em-
ployers do not yet carry insurance against such a possibility,
said Nate Andre, manager of the insurance department of
McCallum, Hill and Co., when addressing the members of the
Regina Rotary Club recently. "Insurance," said Mr. Andre,
"is a hazardous business. It can be conducted successfully
only by qualified and experienced underwriters. In general,
it may be described as a device for regaining a serious loss
at a moderate cost. Fidelity and surety bonds were added
to the insurance family in 1874. Like all insurance, except
life insurance, it is intended to indemnify against losses upon
the happening of unforeseen events.
"A surety company sells to those needing a guarantee
the use of its name or credit. The theory of suretyship,
-therefore, is not entirely that of a distribution of losses. In
fact, the theory of the surety business is that the company
does not intentionally assume risks involving losses. Surety-
ship supposes that only those who are willing to fulfil their
obligations and have the ability to do so, will be bonded, and
consequently there will be no losses. Much of the safety of
a fidelity risk consists in inducing those who are covered by
bonds to believe that honesty is the best policy, and to live
and act accordingly."
Shipbuilding and shipping were dull in 1920, and the out-
look has not improved. Will a part of Canada's investment
in this business be unprofitable, as in the case of the rail-
roads ?
The January statement of government currency shows a
gain of $800,000 in gold held, and a reduction of $18,000,000
in notes outstanding. Sound conditions cannot be brought
about until inflation disappears; the January changes are
a step in the right direction.
Our imports from the United Kingdom for the year
ended January were $226,248,605, compared with $97,396,449
the previous year. Our exports to the United Kingdom for
the same years were $332,063,720 and $510,042,555 respective-
ly. This is a striking reversal, illustrating the wonderful
recovery of Britain.
That a company holding a Dominion charter should
have power to do business throughout Canada, and not
merely be a useless corporation, subject to whatever restric-
tions the provinces cared to impose, was the intention of the
fathers of Confederation. The recent decision of the Privy
Council gives this intention effect.
THE GREATEST SACRIFICE
The animals were imitating their masters by arguing
as to their respective merits in the winning of the war. "I
won the war," insisted the horse "for I carried the
generals." "But I carried the ammunition and without
it where would the generals have been : I won the war,"
said the army mule.
But another claimant ended the argument. "I won the
war," said the jackass, "for I'm the fellow who bought
Liberty Bonds at par."
March 4, 1921
THE MONETARY TIMES
Bank of Hamilton
HEAD OFFICE
HAMILTON
Established 1872
Capital Authorized
Capital Paid Up (January 31st, 1921)
Reserve Fund (January 31st, 1921)
$5,000,000.00
4,988,390.00
4,694,195.00
DirectoTM
SIR JOHN HENDRIE, K.C.M.G.. C.V.O., PresiUeut
CYRUS A. BIRGE, Vice-President
HOWARD S. AMBROSE C. C. DALTON
ROBT. HOBSON W. E. PHIN
I. PITBLADO, K.C. W. P. RILEY
J. TURNBULL W. A. WOOD
ALAN V YOUNG
Branches
At Montreal, and throughout the Provinces of
Ontario, Manitoba, Saskatchewan, Alberta and
British Columbia.
Savings Department at all Offices.
Deposits of $1 and upwards received.
Advances made for Manufacturing and Farming
purposes.
Collections effected in all parts of Canada promptly
and cheaply.
Correipondence tolicited
J. P. BELL - - General Manager
CURRENT ACCOUNTS
Efficiency is hard to obtain and
highly paid for. Merchants and
Manufacturers will find this
Bank equipped and prepared to
give all Current Accounts the
efficient care and careful con-
sideration they demand.
Open a Current Account with
this Bank. Your interests will
be faithfully looked after by
experenced men.
IMPEKIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land -^ The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
A
Considerate
Service
C'OR 55 years our aim has been the
development of a service of indi-
viduality— a service not only efficient but
interesled.
We take pride in acquiring lasting busi-
ness relations, and this is reflected in the
courtesy and promptness with which our
customers' requirements are met.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET. E.C.2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
Captain W. E. MacIntyre has retired from the manage-
ment of the Victoria branch of the Royal Financial Corpora-
tion to engage in the bond business on his own account, with
offices in the British Columbia Permanent Loan Building.
W. L. Anderson has been appointed general manager
of the National Shipbuilding Company, Limited, of Goderich,
Ont. Mr. Anderson has been connected with the Sturtevant
Company of Gait, and was for a number of years with Goldie
and McCulloch.
CoL. D. H. MacLaren, of Barrie, Ont., has been elected
to fill the vacancy on the board of directors of the Chartered
Trust and Executor Company, Toronto, caused by the death
of Sir William Gage. Sir William was one of the vice-presi-
dents, but no successor to him in that office was named.
W. M. Weir, who retired from the position of president
of the Canada Foundries and Forgings, Limited last year,"
has returned again
to take the place
of T. J. Dillon, who
has resigned. Mr.
Dillon was also
managing director
of the company,
but Mr. Weir will
just take over the
duties of the presi-
dent, while James
Arnold, Brockville,
who has been as-
sistant general
manager for some
time, will' .be the
general manager.
There were also
several other
changes in the
directorate and the
board now stands
as follows: Wm.
M. Weir, presi-
dent; Hon. Geoi-ge
P. Graham, vice-
president; Hon. W.
J. Shaughnessy, Montreal; Lt.-Col. C. M. Monserrat, Ot-
tawa; W. T. Sampson, Gananoque; Lt.-Col. C. W. McLean,
W. D. Robb and B. F. Conway, Montreal; James Arnold,
general manager, Brockville, and J. H. Briggs, Brockville,
the latter being also secretary-treasurer.
Chas. a. Campbell has been appointed assistant in-
spector of taxation at Brockville, Ont., succeeding E. G.
Breakell, who has been transferred to Kingston.
OBITUARIES
F. E. Shrimpton, general auditor of the Canadian
Pacific Railway, died in Montreal this week from heart
failure at the age of 53 years.
C. E. Duncan, general superintendent of the Algoma
Steel Coi-poration, died at Sault Ste. Marie, Ont., last
week, following an operation for appendicitis. Mr. Duncan
was forty-eight years of age and was born in Chattanooga,
Tenn.
G. W. Hobson, president and foundeu of the Vancouver
insurance firm of Hobson and Company, Limited, died re-
cently in his eighty-fifth year. The late Mr. Hobson was
one of the insurance pioneers of Vancouver, was the first
secretary of the Mainland Board of Fire Underwriters, which
office he resigned in 1900, when he formed the present in-
surance agency.
NORTH BRITISH AND MERCANTILE CHANGES
Randall Davidson, manager for Canada of the North
British and Mercantile Insurance Co., Ltd., since 1902, and
also president of its subsidiary, the Occidental Fire Insurance
Co., will retii-e from both offices on the 30th June next. Mr.
Davidson's desire has been for a less strenuous life after a
service of forty years with the North British and Mercan-
tile. Mr. Davidson was educated in England, and at Trinity
College, Port Hope, and afterwards at the Royal Military
College, Kingston, Ont. On leaving the latter in 1882, he
became a clerk in the employ of the North British at the
Canadian branch, Montreal. After serving some time as a
junior, Mr. Davidson was given a clerkship in the United
States branch of the company in New York. He served
there later as special agent for upwards of three years, re-
turning to Montreal in 1887 to assume the position of in-
spector. He succeeded to the management in 1902.
Mr. Davidson, who has been invited to a seat on the
Canadian board, will be succeeded by C. A. Richardson. Mr.
Richardson was born at Ingersoll, Ontario, 3rd July, 1879.
He commenced his
business career in
1896 as junior
clerk in the Lon-
don Assurance Cor-
poration at Mont-
real. He severed
his connection with
this institution in
1903 to become
chief clerk in the
Canadian head Of-
fice of the Cale-
donian Insurance
Co. after serving
three years with
the Caledonian in
the above capacity,
and as inspector
for Ontario west
o f Toronto, Mr.
Richardson return-
ed to the London
Assurance Corpor-
ation as their in-
spector foj- west-
ern Canada with
headquarters i n C. A. Richardson
Winnipeg. Mr.
Richardson joined the staff of the North British and Mer-
cantile in 1908 as inspector for the north-west, and when that
company opened a branch office in Winnipeg in January, 190ii,
Mr. Richardson was appointed manager thereof.
In 1914 the North British and Mercantile purchased a
controlling interest in the Occidental Fire Insurance Com-
pany, the head office of which was then in Wawanesa, Man.,
and its business almost entirely confined to western Canada.
The head office of the Occidental was moved to Winnipeg, and
Mr. Richai-dson was appointed its vice-president and secre-
tary, in addition to his position as branch manager at Win-
nipeg of the Noi-th British and Mercantile. Other promotions
are announced as follows: F. J. L. Han-iSon has been ap-
pointed to succeed Mr. Richardson as branch manager of the
North British and Mercantile Insurance Company, Limited,
and vice-president and secretary of the Occidental Fire In-
surance Company in Winnipeg. W. S. Daviss becomes as-
sistant manager of the fire department of the North British
and Mercantile Insurance Company, Limited, and branch man-
ager of the Occidental Insurance Company. Wm. Cooke
succeeds J. D. Rowell (who has become an agent of the com-
pany in Toronto as inspector of the North British and Mer-
cantile for Ontario. S. J. Bourne has been appointed inspector
of the Occidental Fire Insurance Company for Ontario, resi-
dent in Toronto. .A. E. Bibbs is appointed inspector for the
province of .\lberta, headquarters Calgary.
March 4, 1921
T U
MONETARY TIMES
13
Siiimiiiriiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiuiiiiiiiiniiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiniiuiiiiiiiiiiinni^
I The Sterling Bank |
I OF CANADA j
liiiiiiiiiiiiiiiiiiiiiiriiiniiiiiiiiiiiiiiiiiiiuiimiiiiiiiiiiiiiiiiiiJiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniHiiiiiinniiiiniiiiiiniiiiiiiiiiiiuiiiiiiiiinm
"Personal Banking Service" means simply that
every officer of the Bank puts his personal effort
behind the work he has in hand— whether it be the
collecting of a note or draft, or the obtaining of a
d4fficult piece of information, and the results of such
a spirit of co-operation have been far-reaching.
Head Office
KING AND BAY STREETS, TORONTO
. - 1855
Branchea
Throughout
Conewda
Capital and Reserve - $9,000,000
urn
Over 130 Branches
Experienced travellers rarely carry large sums of
money round with them, instead they use Letters
of Credit payable all over the world. Full informa-
tion about these will be gladly given by the
Manager of The Molsons Bank.
EDWARD C. PRATT. General Manager ,q
121
11^^10
The National Bank of Scotland
Limited
Incorporated by Royiil Ch.irtcr ami Act of Parliament. I:staf)Msmeii [SIF.
Capital Subscribed ;{;5,000.000 825.000,000
Paid up 1,100.000 ,S..S0O.0O()
Uncalled 3.900,000 19,500,00(1
Reserve Fund 1,000.000 5.000,000
Head Office - EDINBURGH
WILLIAM CARNBGIE, General Manaiier, GKOHGE A. HU.NTEK. Sec.
LONDON OFFICE-37 NICHOLAS LANK. LOMUARD ST.. E.C. «
T. C. HIDDELL. DLGALO S.MITH,
Manager Assistant Manager
The agency of Colonial and Foreign Banks is undertaken, and ttie Accep-
tances of Customers residing in the Colonies domiciled in London, are retired
on terms which will be furnished on application.
A Newspaper Devoted to
Municipal Bonds
npHERE is published in New Vork City a daily
and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond offerings.
Write for free apecimen copies
THE BOND BUYER
67 Pearl Street
New York, N.Y.
The Standard Bank
of Canada
Hstablished IS73 I.S2 Hr.uici.cs
Capital (Authorized by Act of Parliament) »5,(K)0,(K)().0U
Capital Paid-up 3,5O0.0(Xi,OO
Reserve Fund and Undivided Profits <,Ti7.326.90
DIRECTORS
\\'KLLINGTON' FrA.NCIS. K.C. Hcft^RT LaNCUHS,
President Vice-President
W. F. Allen, F. W. Cowan, T. K. Greening, H. Uinglois,
James Hardy, F.C.A.. Thos. H. Wood.
Head office, KS King St. West TORONTO, Ont.
C. H. KASSON. General .Manager
J. S. LOUDOiV, Assistant General Manager
SAVINGS BANK DEPARTMENT AT ALL BKA.\CHi:s
ESTABUSHEX) 1879
Alloway & Champion
Bankers and Brokers
Member* of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
Safety Deposit Boxes
Securities for Safe Keeping
The distinction should be noted between
the safe DEPOSIT of securities and the
CARE of securities. This Company rents
Safety Deposit Boxes for the deposit of
valuable papers to which the renter alone
or his authorized agent has access. When
securities are placed in the CARE of this
Company, it not only safeguards them, but
it also collects the income, remits pro-
ceeds, makes accurate accounting and
performs other valuable services.
THE BANKERS
mVST GOMB\NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Bailding in each city
THE MONETARY TIMES
Volume 66.
FINANCIAL BILLS BEFORE I'AKLIAMENT
Numerous 3Ieasures For Financial and Commercial
Institutions — The Outlook for the Session
THE WEEK IN PARLIAMENT
(Special to The Monetary. Times.)
Ottawa, March 3, 1921.
Thursday, February 24
In Commons: — (a) Debate on Address; (b) First read-
ings of the following- bills: one to incorporate Canadian Bar
Association, one amending Dominion Life Assurance Com-
pany .^ct, one to incorporate the Fidelity Company of Can-
ada, one respecting the Montreal, Ottawa and Georgian
Bay Canal Company's desire to have time for commencing
and finishing work extended, one giving Jas. MacLaren Co.,
Ltd., further powers of financing in order to build paper
mills, and one to amend the Trade Mark and Design Act; (c)
Second reading Bill to amend Dominion Elections Act; (d)
First reading Bill to amend Senate and House of Commons
Act so that ministers must resign all directorships; and (e)
R. C. Renders, M.P., asks commission of inquiry into grain
trade from producer to consumer.
In Senate:— Second reading Gold and Silver Mark Bill.
Friday, February 25
In Commons: — (a) First reading Patents of Invention
Act; (b) third reading act to amend Dominion Elections Act
so that revision of lists for Ontario referendum can be pro-
ceeded with; (c) Petitions presented, one from Manitoba and
North-Western Railway of Canada asking authority to con-
struct certain lines of railway in Saskatchewan, and one
from Dominion Express Company asking extension of powers
to include carriage outside as well as within Canada, and to
increase capital stock.
Monday, February 28
In Commons: — (a) Petitions presented, one from Quebec,
Montreal and Southern Railway Company asking for ex-
tension of time in which to complete railway, and another
from Credit Foncier Franco-Canadien, of Montreal, asking
for repeal of Act of Incorporation; (b) First reading act to
amend and consolidate law relating to copyright so as to
make the Canadian laws conform to the Berne Convention;
(c) amendment to amendment by Mr. J. A. Campbell, M.P.,
asking for adjournment of House after enacting necessary
legislation until after census is completed far enough for
basing Redistribution Bill upon it, the passing of such a
bill followed by dissolution of parliament and a general
election; (d) Introduction of resolution to approve Canada-
West Indies Trade Agreement, 1920; and (e) Debate on
Address.
Tuesday, March 1
In Commons: — (a) Debate on Address; (b) First reading
bill defining Canadian nationals as being "British subjects
domiciled or ordinarily resident in Canada"; (c) First read-
ing bill to incorporate North American Trust Company of
Canada.
In Senate: — First reading Lake of the Woods Control
Board bill; and (b) Answer to questions concerning govern-
ment railway loans in the United States.
Wednesday, March 2
In Commons: — Debate on Address.
In Senate: — (a) Concurrence amendments House of
Commons to Dominion Elections Act, making bill ready for
Royal assent Thursday; and (b) Second reading bill to
amend Criminal Code for revision of sentences made too
lenient or onerous by judge.
The debate on the address in reply to the Speech from
the Throne was still proceeding on Thursday with every
evidence of an intention on the government's part to press
it to a division late Thursday night. On Monday J. A. Camp-
bell, member for Nelson, moved an amendment to the amend-
ment asking that parliament should enact such legislation
as was in the interests of the country, and then adjourn
until sufficient census returns had been compiled on which
to base a redistribution bill. According to this proposal
parliament would then resume the interrupted session, pass
a redistribution bill, dissolve, and have a general election.
Such a plan is understood to have been already in the gov-
ernment's mind if its majority should have proved so small
as to make defeat a probability. There is every confidence
now, however, that they have enough of a working majority
to make an attempt at a session following the present one a
feasible undertaking. The events of the session may-change
this feeling of confidence, but just at present there seems
little reason to doubt the government's ability to survive
this session.
Discussion on Industrial Relations
The conference of a group of industrial relations men
associated with various Canadian industries, which took place
on February 21 and 22, concluded with the adoption of a
resolution on the subject of joint industrial councils, and of
appreciation of the assistance of the minister and depart-
ment of labor in the promotion of better relations in Cana-
dian industry. On the subject of joint councils the consen-
sus of the conference was "that the work thus iarc conducted
in the field of industrial councils justifies a continuation of
the conference of employee and employer." Those present
also stated that they would welcome further conferences
along similar lines, to be called at the discretion of the min-
ister of labor, and the publication by the labor department
of bulletins of information on industriaJ topics.
Report of the Wheat Board
Fifty per cent, of the exportable surplus of the Canadian
wheat crop was exported before December 31, 1919, that
year in which the marketing of all Canadian wheat was
placed in the hands of the Canadian Wheat Board, accord-
ing to the report of the chairman of that body, James Stew-
art, tabled in the House on February 21 by Right Hon. Sir
George Foster, minister of trade and commerce. In his re-
port, Mr. Stewart states that the average price realized by
farmers at the shipping point in Canada was $2.50 a bushel,
as against 25 cents a bushel less received by farmers in the
United States, according to figures of the United States
Bureau of Statistics. The price of bread in Canada, during
the period when wheat flour prices wei'e also controlled by
the Wheat Board was 1% cents a pound less than the average
price paid by the consumer in the United States.
Mr. Stewart deals fully in his report with the woi'k of
the board, which was created by order-in-council on July 31,
1919, from its inception until the close of its work. The
balance sheet from inception until December 31, 1920, showed
total deposits in banks and elsewhere of approximately $10,-
500,000, against which there was $10,000,000 out.standing in
participation certificates. There had been paid to date $9,-
000,000 and claims were filed with the board for between
$500,000 and $600,000 covering lost, stolen and destroyed
certificates, leaving participation certificates aggregating
over $400,000 unaccounted for.
Including the disbursing of interim and final payments,
which by themselves will have cost $200,000,000, the cost of
administering the boa.rd, including general expenses, auditing,
registering certificates, etc., less than half cent per bushel on
the volume of grain handled. The chairman points out tha^t
of over seven million bags of flour handled, not a single bag
was lost through deterioration or not being accounted for.
At a largely attended public meeting, Whitby, Ont.,
Board of Trade was reorganized on February 10. Richard
N. Bassett was elected president, Louis F. Richardson vice-
president, C. C. Parsons secretary and A. H. Allin treasurer.
A special committee was appointed to consider the proposi-
tion made by a new industry desirous of erecting a large
plant in the town.
March 4, 1921
THE MONETARY TIMES
Bank of New Zealand
ESTABLISHED IN 1861
Bankers to the New Zealand Government
CAPITAL
Paid-Up Capital ($13,528,811) and Reiene Fopd
($12,166,250) $25,695,061
Undi»ided Profit. 713,039
Aggrexate Asieti at 31it March, 1920 ... 257,500,944
Head Office:
WELLINGTON
NEW ZEALAND
H. BUCKLETON
General Manager
THE HANK OF .NEW ZEALAND has Branches at
Auckland. WelliriKton. (.hristchurch. Uunedin. and 203 other
places in New Zealand ; also at Melbourne and Sydney
(Australia). Suva and Levuka (Fiji). Apia (Samoa), and
London.
The Bank has facilities for transacting every description
of Bankint; Business. It invites the establishment of Wool
and other Produce Credits, either in sterling or dollars, with
any of its Australasian Branches.
LONDON OFFICE : 1 Queeo Victoria Street, Mansion Home, E.C, 4
CHIEF CANADIAN AGENTS :
Canadian Bank of Commerce Bank of Montreal
ilOMEBANK<vCANADAl
SMALL ACCOUNTS WELCOMED
Every chartered bank welcomes the
deposit of a single dollar as it records
the spread of the practice of thrift and
introduces the bank to a customer
whose account will surely increase.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto 5.7
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
hkad okficb. wevburn, saskatchewan
Branches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midale
Griffin, Colgate, Pangnian, Radville. Assiniboia, Benson,
Verwood, Readlyn, Tribune, Expanse, Mossbank, Vantage,
Goodwater, Darmody, Stoughton, Osage, Creelman, Lew-
van, Froude and Ardill.
A GKNHRAL BANKING BUSINESS TRANSACTED
H. O. HOWELL, General ManaBer
TH€ MCRCHANTS BANK
Head Office : Montreal. OF CA.h4A.DA
Established 1864,
Capital Paid-up, $10,029,622 Reserve Fund and Undivided Profits, $9,475,585
Total Deposits (30th October, 1920) - Over $170,000,000
Total Assets (30th October, 1920) - Over $209,000,000
Board of Director* :
SIR H. MONTAGU ALLAN Vice-President
Sir F. OrrOrkLkwis, Bart.
Hon. C. C. Ballantvnk'
F. Howard Wilson
Farouhar Robertson
Geo, L. Cains
Alfred B. Evans
Thomas Ahearn
LT.-COL. J. R. MOODIE
Hon. Lorne C. Webster
A. J. DAWES
E. W. Kneeland
Gordon M. McGregor
General Manager ■ - D. C. Macarow
Supt. of Branches and Chief Inspector : T, E. Merrett
General Supervisor - - W. A Meldrum
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending irom the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramsay and C. J. Crookali, Agents
London, England, Office, 53 Cornhill : J. B.Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
16
THE MONETARY TIMES
Volume 66.
BANK BRANCH NOTES
CANADIAN BUSINESS FAILURES
The following is a list of branches of Canadian banks
which have been opened recently: —
New Liskeard, Ont Bank of Nova Scotia
St. Andrew's East, Que Bank of Nova Scotia
St. Thomas, Ont., East End . . Royal Bank of Canada
Couva, Trinidad Royal Bank of Canada
Halifax, N.S. (Barrington St.) Royal Bank of Canada
Winnipeg, Man., St. Vital (373
St. Mary's Rd.) Imperial Bank of Canada
The branch of the Bank of Hamilton at Coderre, Sask.,
was closed on February 15.
C. S. Coll, who has been with the Bank of Commerce at
Halifax, has been made assistant manager of the Provincial
Bank at St. John.
O. N. Johnstone, formerly man&ger of the Bank of
Hamilton at Taber, Alta., has been transfeited to the Winni-
peg office. He is succeeded by H. Lament, who was formerly
in charge at Lomond, Alta.
Eight thousand five hundred dollars in cun-ency van-
ished on February 24 from a teller's cage in the main Tor-
onto office of the BE^nk of Montreal, at Yonge and Front
Streets. When its disappearance was noted, police head-
quarters were notified and the employees searched. Paying
Teller Wright had been in an office back of his cage for 15
minutes, making up his returns for the clearing house.
When he returned a package of $8,500 in bills and $12,500
in "b&nk legals," used only for exchange between banks, had
gone.
E. M. Brown, teller in one of the adjoining cages, was
later arrested, and confessed to taking the money, following
defalcations in his own books.
H. P. Strong, accountant of the Moncton branch of the
Royal Bank, has been transferred to Kingston, J&maica, as
chief accountant.
The number of failures in the Dominion, a<s reported by
R. G. Dun and Co. during the week ended Februai-y 25, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
EXCHANGE QUOTATIONS
Quotations of exchange on the United States and Euro-
pean countries as at March 3, 1921, with compaa-isons, are
given below. The Canadian figures are supplied by the
Imperial Bank of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto:- —
Can., Feb. 24. Can., Mar. 3. N.Y., Mar. 3.
London, cheque 4.43 4.43 3.88 y2
France 8.25 8.17 7.22
Germany 1.92 1.82 1.62
Belgium 8.67 8.55 7.55
Italy . 4.20 4.18 3.66
Switzerland 18.98 18.99 16.70
United States 14M(5 1431,;
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways for the first three weeks
in Febiniary: —
Canadian Pacific Railway.
1921. 1920. Inc. or dec.
February 7 $3,370,000 $3,288,000 -|- $ 82,000
February 14 3,044,000 3,547,000 — 503,000
February 21 2,913,000 2,901,000 4- 12,000
Canadian National Railway.
February 7 $2,174,009 $1,545,473 -f $ 628,536
February 14 2,121,780 1,673,047 -|- 448,733
February 21 1,958,846 1,552,908 + 405,938
Grand Trunk Railway.
February 7 $2,0.38,601 $1,585,551 + $ 453,050
February 14 1,891,565 1,716,963 + 174,602
Febniary 21
Date.
c
o
3
c
a
a
<
w
Z
pa
a;
SI
1
o
Feb. 25 . .
..16
14
0
4
2
9
8
2
0
48
12
Feb. 18 . .
.. 6
28
2
2
2
0
4
0
0
44
16
Feb. 11 . .
. .11
19
7
1
2
3
0
2
1
46
21
Feb. 4 ..
. . 6
15
0
0
4
4
13
0
0
42
18
SPRING INFLUENCES IN TRADE
Further indications of returning confidence and business
recovery are in evidence, according to Dun's Bulletin of
February 26. In Montreal, business recovery is in evidence.
Boot and shoe jobbers and manufacturers, long in the dumps,
are booking orders more freely, though not in any great
volume as yet, and are discussing with much interest the
possibility of large orders from abroad. It is reported that
figuring is being done on a proposed order from Russia for a
million pairs of shoes, half cash to accompany the placing
of the order, while as before noted, there is a probability
of a considerable order for army shoes from Italy. The
Italian government has also been making enquiries for prices
and samples of leather, and tanners claim that as stocks are
comparatively low any development of actual business in the
directions indicated would materially strengthen the market.
Advices from American leather centres report improving
prospects in the export trade.
WEEKLY BANK CLEARINGS
The following are the Bank Clearings for the week ended
Ma-rch 3, 1921, compared with the corresponding week last
year: —
Week ended Week ended
Mar. 3, '21. Mar. 4, '20. Changes.
Montreal '.... $128,733,821 $130,460,553 —$1,726,732
Toronto 95,867,356 93,675,106 -J- 2,192,250
Winnipeg 38,543,623 44,850,681 — 6,307,058
Vancouver 13,629,670 16,103,250 — 2,473,580
Ottawa 8,462,668 10,771,590 — 2,308,922
Calgary 6,829,032 8,164,927 — 1,335,895
Hamilton 5,263,675 7,452,512 — 2,188,837
Quebec 6,248,528 6,370,407 — 121,879
Edmonton ...... 5,557,509 5,382,416 - 175,093
Halifax 4,070,767 4,593,332 — 522,565
London 3,260,564 3,614,527 — 353,963
Regina 3,425,317 2,765,680 + 659,637
St. John 2,990,542 3,635,349 — 644,807
Victoria 2,356,948 3,014,792 — 657,844
Saskatoon 1,769,998 1,389,891 — 380,107
Moose Jaw 1,219,432 1,614,426 — 394,994
Bra.ntford 1,248,303 1,284,623 — 36,320
Brandon 748,530 663,220 -r 85,310
Fort William 908,694 859,468 ^ 49,226
Lethbridge 564,158 717,140 — 152,982
Medicine Hat 371,894 440,551 — 68,657
New Westminster 498,915 632,131 -^ 133,216
Peiterboro 954,370 732,319 - 222,051
Sherbrooke 1,284,281 906,808 - :377,473
Kitchener 951,671 1,202,311 — 250,640
Windsor 2,726,716 2,941,634 — 214,918
Prince Albert . . . 329,013 391,751 — 62,738
Totals $338,815,995 $354,631,395 — $15,815,400
Moncton 1,116,909
March 4, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
- $ 24,655,500.00
PAID UP CAPITAL - - - -
RESERVE FUND ... -
RESERVE LIABILITY OF PROPRIETORS
AGGREGATE ASSETS 30th SEPT., 1920
(ESTABLISHED 1817)
16,750,000.00
24,655,000.00
$ 66,061,000.00
$362,338,975.00
Sir JOHN RUSSELL FKENCH. K. BE.. General Manager
357 BRANCHES and AGENCIES in the Australian States. New Zealand. Fiji. Papua (New Guinea), and London. The Bank ti
of Australasian Banking Business. Wool and other Produce Credits arranged.
sacts every description
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2.
Agents: BANK OF MONTREAL. ROYAL BANK OF CANADA
BUSINESS FOUNDED 179S
INCORPORATED IN CANADA 1897
AMERICAN BANK NOTE COMPANY
ENGRAVERS AND PRINTERS
BANKNOTES, BONDS. MUNICIPAL DEBENTURES, STOCK
CERTIFICATES, CHEQUES AND OTHER MONETARY DOCUMENTS
Special Safeituards Against CounterTeiting Work Acceptable <
Head Office and Works : OTTAWA 224 Wellington St.
BKANCH OFFICES
jll Stock Exchanges
Gboroe Edwarus. F.C.A. Arthur H. Edwards. F.C. A.
H. Pbrcival Edwards W. Pomeroy Morgan W. Herbert Thomi'SON
A. Gboffrby Edwards Oswald N. Edwards Charles E. White
T. J, Macnamara T. p. Gegcie J.L.Atkinson
K. A. .MAPI \V. A. Lom.MRR John .\1. Edwards
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO ..
CALGARY ..
VANCOUVER
WINNIPEG ..
MONTREAL
CORRESPONDENTS
HALIFAX, N.S. ST. JOHN. N.B.
LONDON, ENG. PARIS, FRANCI'
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDO.N BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK, USA
FOREIGN FREIGHT FORWARDERS,
CUSTOMS
BROKERS AND DRAWBACK AGENTS
81 VICTORIA ST.
TORONTO
CODES
Cable Address Western Union
Ricetield ABC, Sth & 6th Editions
Telephone
Adelaide 935
OTHER OFHCES
MS CoRiSTiHE Bldo.. 11 Broadway,
MONTREAL NEW YORK
40 Central St..
BOSTON
Enquiiki soiictttd In connection with either Export o
r Import buaineaa 1
The Opinion of a Judge
A CANADIAN JUDGE, as the result of his
* wide experience in dealing with Wills
and Estates, recently said : —
" Every person over Iwenly-one years of ape should
make a Will devising his property according to his
best judgment and appointing a suitable person, or.
more aiieh. a Irml compan\) as ihc Executor."
There are many reasons why a trust company should
be appointed the executor. They do not die or
move away, do not defalcate or tangle up accounts.
The officers and board of directors, inspectors and
accountants are skilled experts, and all unite in the
wise administration of estates. A trust company is
especially needed where there are infants."
Take heed to the counsel of this experienced
Judge.
Appoint as the Executor and Trustee of your
will Canada's Oldest Trust Company :
THE
ToroatoGeaekalTrusts
CORPORAnOiS
Head Office: Cor. BAY and .MELINDA STS.. TORONTO
Write for Booklet ' • Wills and Wisdom '
18
THE JIONETARY TIMES
Volume -66.
CO-OPERATIVE MARKETING OF GRAIN
A Purely Voluntary Association Could Scarcely Succeed —
Achievements of the California Fruit Growers'
Association
By A. B. Barker
MUCH is being said these days about co-operation, and
in the west an attempt is being made to organize the
grain growers with a view to eliminating the dealers. So
long, however, f.« the organization contemplates only a
purely voluntary association of the growers, without ade-
quate means of enforcing the agreements entered into by the
members, the dealers will have little to fear. Voluntary
associations of this class 'depend for their effectiveness on
the good faith of all, and, unfortunately, in most pooling
organizR'tions, there will be found some who can only be de-
pended on so long as things are going their way. This is not
because they belong to any particular class, as even sup-
posedly good churchmen do not always bang together, and
stock pools in financial circles are not unacquainted with the
double-cross.
Must be Two-Way Agreement
The proposed schemes have the backing of the provin-
cial governments, and many dealers are nervous, but unless
the organizations are so formed that once in, a member must
stick whether he wants to or not, there will be only tem-
porary inconvenience for the dealers until the inevitable
disagreements come and with them the return to fonner
methods on the part of the members. Few men will not go
into Ml organization which promises profits, and fewer still
will not try to dodge their share of responsibility if this
promise does not materialize. Human nature sees to that.
Co-operation means the combination of men who are
willing to forego the chance of an immediate profit for them-
selves, so that there will be a profit in the end in which all
will share equally according to the &mount of their venture,
and the rock on which most of the schemes have been wrecked
has been the difficulty of controlling the innately selfish mem-
bers. The various stages of organizing into pools for the
selling of their products and the subsequent breaking of
these pools by some member trying to take advantage of
a chance of personal profit, &re well illustrated in the history
of the California Fruit Growers. Some years ago these
growers were unorganized, and while in good years some
money was made, the bulk of the profit went to the railways
and commission men. Attempts were made to organize, but
the railway r.^nd commission men, by offering individual mem-
bers a good price for their output, always managed to break
up the organization. As soon as the pool was broken, of
course prices slumped, although the consumer reaped no
benefit. After several failures of this kind, and when many
of the growers were facing b&nkruptcy, the plan now in
operation was tried. In it there was no loophole through
which a mean or shifty member could dodge. An association
was formed and each member sold his crop outright to a
branch organization. This organization graded the fruit,
packed it and sold it at a fair price to the dealers, and after
the expenses were paid each member participated in the
profits according to the fruit he supplied. The results were
wonderful. The railways were brought to time in the matter
of rates &nd deliveries, the markets were furnished during
the season with supplies as needed, the growers prospered
and the consumer paid a fair price, and no more. It took
outside pressure to force the kind of organization which
was necessary to bring this about, and it was only because
the growers were desperate that they were willing in the
first pla-ce to agree to so comprehensive a plan.
Marketing of Grain
The marketing of grain and perishable fruit, however,
are very different. In the California case the main market
was in the same country and as the fruit would not keep, it
had to be sold. With the western grain the ma.in market
will be abroad, and the grain will keep at least for months.
This is both an advantage and a weakness. An advantage,
because the shipments c&n be arranged to go forward re'gu-
larly and so maintain as far as possible steady prices. A
weakness because of the ingrained desire of the average
farmer to hold for a rise of another cent a bushel. With the
provincial governments behind the scheme, there will be
tremendous pressure from the constituents to hold the grain
off the market if prices are low, and as many members will
want advances, to arrange credit to enable this to be done.
These will be the teething troubles of the organization, and
as the system is built up, will, no doubt, be entirely over-
come, but the executive during its first year will have a stren-
uous time explaining to disgruntled members if the pla-n does
not strike a favorable market the first season.
TO REFUND NEW YORK LOAN
The Canadian government has started negotiations to
refund the $2.5,000,000 of five per cent, bonds which mature
on April 1 next. Investigation discloses that the Dominion
government has bought up and retired already considerably
more than a majority of the $25,000,000 maturity and has
completed arrangements to care for the balance at maturity
without refunding. That maturity is, one-third of the $75,-
000,000 Canadian Government loan floated in the latter part
of 1916 at a basis ranging from 5.10 per cent, for the five-
year bonds to 5% per cent, for the ten-year bonds, and ZVs
per cent, for the 15-year bonds.
The syndicate which placed the issue was composed of
J. P. Morgan and Co., Brown Brothers and Co., Harris-Forbes
and Co., the Bank of Montreal, the First National Bank, the
National City Bank, and the Guaranty Trust Co.
NEWFOUNDLAND FIRE LOSSES HEAVY
The annual meeting of the Newfoundland Board of
Fire Underwriters was held in St. John's on February 4. In
the absence of the chairman, C. MacKenzie Harvey, the '
agent of the Phoenix of London, P. E. Rendell, was appointed
acting chairman. The accounts of the secretary-treasurer
showed the board to be in a good financial condition. The
election of officers resulted as follows: — Chairman, C. Mac-
Kenzie Harvey, agent Copimercial Union and Palatine, re-
elected; secretary-treasurer, R. G. Ash, re-elected; Com-
mittee on Rates and General Purposes, T. J. Power, repre-
senting the Royal and National of Hartford; J. B. Baird,
representing the Norwich Union and Union; George R. Wil-
liams, agent for the Continental and Fidelity Phoenix, and
Robert Dawe, agent of the New York Underwriters, with the
chairman and secretary as members ex-officio.
The losses this year have been very heavy, especially
during the last few months of the year, some of the com-
panies losing far more than their premium income. Three
companies joined the board during 1920, the Niagara of
New York, represented by Avalon T. Goodridge; the Economic
of London, represented by Rothwell and Bowring, Ltd.; and
the World Auxiliary of London, represented by Messrs.
Bowring Bros., Ltd., and one company was admitted since
the new year, namely, the Car and General of London, repre-
sented by Messrs. Blackwood, Emerson and Winter. The
premium returns were in excess of the previous year, and
show an inclination on the part of the public generally to
carry more fire insurance.
The Vancouver Real Estate Exchange, at its annual
meeting, re-elected R. Kerr Houlgate president for the
ensuing year. H. R. Budd was elected vice-president; F.
Hoole, secretary- treasui'er, with the following executive
committee: A. JE. Austin, J. W. Allan, D. W. Reeve, J. P.
Nicolls, G. L. Edwards, A. McC. Creery and Lt.-Col. G. H.
Dorrell.
March 4, 1921
THE MONETARY TIMES
Is Your Property
Still Unsold— Still To Let
We will sell or rtnt it for you.
V\ e can do it for you, because we are doing it every day for
others. Collection of Rents. Efificient Management of Apartment
s. Offices and Factory Buildinjis— we do these things
exceptionally
For the sei
vith previous P
Call, write
vhat we do, ho
£ll.
ender our fees are small. By comparison
r services very often cost theownernothing.
for particulars. We will tell you exactly
it and what we charge.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS
Winnipeg TORONTO London, Eng.
Every Man Intends to Make a Will
hul
: when one feels tit and ca«er for the day'
t in four, and help carry a canoe arou
hard to contemplate the idea of a WILL ^
That is why so many men die without making any will.
That is why so many a comfortable little fortune is wasted in legal tangles.
That is why so much property gets into hands for which it was never
intended.
Every man has rather decided views about the disposition of the wealth
that he has created and saved. And he can enforce his wishes hy a
carefully drawn will and a wise choice of an executor. He can choose
no executor who will administer his estate more prudently and
faithfully than—
The Canada Permanent Trust Company.
Put your intention into eHect tu-Jay. and name as your exL-cutor
THE CANADA PERMANENT TRUST COMPANY
Paid-up Capital 18 TORONTO STREET
Sl.OOO.OOO TORONTO
Manager. Ont:irio Branch: A. E. Hcssin
ROYAL BANK OF CANADA
[Statement to the
Dominion Government (Condensed)
January 31, 1921
NTRHAL
Capital Paid Up
Reserve Fund _
Undivided Profits
Notes in Circulation
Deposits „.,_ ,
to other Banks
LIABILITIES
Bills Payable (Acceptances by London Branchj_ _ „,.,
Acceptances under Letters of Credit 1..'." 17,154'
. $ 20,214.
.. 20.174,
54e
_ 36.257,
.. 435.203,
-. 11.856,
4.667,
780.00
395.00
.928.20
734.74
,450.74
786.09
629.23
,357.82
ASSETS
Cash on Hand and in Banks
Deposit in the Central Gold Reserves _ _._
Government and Municipal Securities
Railway and other Bonds, Debentures and Stocks"
Call Loans in Canada ,
Call Loans elsewhere than In Canada
$546,376,061.82
$130,812,609.59
. 17.000.000.00
. 33,415,545.50
.. 14,599.699.83
.. 13,401.798.07
.. 38.497.198.66
$247,
Loans and Discounts „ 5269,
Liabilities of Customers under Letters of Credit as per
contra „ ^7
Bank Premises _ „ .'. .._. "~r.L.'.'.r. '" 9I
Real Estate other than Bank Promises ..' '.'I'~Z..i
Mortoages on Real Estate sold by the Bank
Deposit with Dominion Government for Security of Note
Circulation
$546,
726,851.65
679,549.01
454.357.82
680,358.31
932.654.12
42.290.91
uo. 000.00
376.061.82
725 BRANCHES IN CANADA. NEWFOUNDLAND. WEST INDIES
CENTRAL and SOUTH AMERICA, also LONDON. NEW YORK
and BARCELONA
Paris Auxiliary— THE ROYAL BANK OF CANADA (France)
Be sure your WILL is made, naming a Strong
TRUST COMP.4NYas your
EXECUTOR
Ask for Booklet
CAPITAL, ISSUKD AND SUBSCRIBED
PAID-T'P CAPITAL AND RKSKRVE...
The Corporate Executor."
$1,171,700.00
1,172.000 00
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE: WINNIPEG, CAN.
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
\)^
TE have 450 good businesses for sale in
/ portion of Alberta. Everything from
Store to a small Confectionery
the central
a General
If you want a business in Alberta you want us. 1
WHYTE & CO.. LIMITED
111
Busine,,
Pantases Building
Brokers
• Edmonton
Alberta
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
((
The
M
one
tary
T
i m e s "
01
11 be sent you for four months
r TRIAL SUBSCRIPTION plan
on
for
$1
.00
Just send a
dollar bill ai
-id your name
and addrestt.
The Security Trust Company, Limited
Head Office - - Calgary, Alberta
Liquidator, Trustee, Receiver, Stock and Bond Brokers,
Administrator, Executor. General Financial Agents.
W M CONNACHER Pres. and Managing Director
20
THE MONETARY TIMES
Volume 66
YEAR OF CONTRACTION IN SHIPPING
Freight Business was Erratic, while Passenger Business was
Good, with Falling Off at Close
AT a meeting of the members of the Shipping Federation
of Canada, held on FeKruary 9 in Montreal, the
eighteenth annual report for the year 1920 was submitted
by the president, R. W. Reford. Reviewing the shipping sea-
son of last year, the report showed that the total number of
seagoing and coasting vessels was 663, of 2,031,729 tons, as
■ compared with 786, of 2,179,280 tons, in 1919 a decrease of
123 ships and 147,451 tons. The season of 1920 on the whole
was satisfactory, the passenger traffic being exceptionally
good, although a slight falling off was noticed during the
autumn months. The freight traffic, while good during the
earlier part of the season, became erratic and uncertain to-
wards the close, and at times cargo was scarce and difficult
to procure. The- failure of the British government to acquire
our grain crop led to a decrease in the number of tramp
steamers which usually come to the port during the closing
months of navigation. The St. Lawrence coal traffic still re-
mains dormant, and very little was done during the season.
The demand for coal at the mines in Cape Breton and the
decrease in production was principally the cause. Many of
the colliers commandeered during the war period have now
been released, and, with additional tonnage coming on the
market, it is anticipated that within the next year or two this
trade should regain the position it held prior to the war.
Shipbuilding Dull
As regards shipbuilding, the tonnage turned out from
Canadian yards during the past year is estimated at approxi-
mately 200,000 tons deadweight. Lloyds' register for the
quarter ending September, 1920, placed Canada seventh
among the nations, with 170,62.5 gross tons under construc-
tion. The lack of new orders caused shipbuilders to approach
the government to secure assistance for the industry. Parlia-
ment enacted legislation authorizing the granting of credits
to the extent of $20,000,000 to enable shipbuilders to finance
foreign orders. The erratic conditions of the foreign exchange
mai'ket prevented foreign interests from placing orders in
Canada, and, therefore, none of the credits was used.
Deep Waterways
With regard to the International Joint Commission on
a deep watei-way from Montreal to the head of the Great
Lakes, the executive of the Shipping Federation, after con-
sidering this project fully, went on record as being strongly
opposed to it, as, in their opinion, the time will never come
when ocean-going vessels will proceed further inland than
Montreal, as the delays occasioned by travelling through
locks, the high cost of operation, and the equally high cost
of upkeep, would make it anything but a profitable under-
taking.
Labor conditions on the docks were satisfactory, and
agreements entered into last spring with the longshoremen,
shipliners and checkers were carried out. It is thought that
the wages paid to wharf labor at Canadian ports have now
reached their maximum, and that with the low earnings of
the steamship companies, wages and other operating costs
must come down to a more moderate level, otherwise ship-
owners will have no alternative than to lay their vessels up.
The Labor Bureau on the docks was of great assistance to
masters in tracing desertions from ships, providing substi-
tutes and looking after crews generally. A total of 105 men
were apprehended for various breaches of discipline, and a
total of 621 substitutes were supplied.
The following officers were elected for 1921: R. W. Re-
ford, president; J. R. Binning, treasurer; E. W. Foulds,
assistant treasurer; manager and secretary, Thomas Robb.
Executive council — A. E. Cook, J. R. Binning, D. W. Camp-
bell, A. M. Irvine, W. R. Eakin, R. W. Reford, A. Mackenzie,
Major P. A. Curry, R. B. Teakle. Sub-committees — Bill of
Lading, Col. W. I. Gear; Major P. A. Curry, J. R. Binning;
Harbor Equipment, Col. W. I. Gear and Major P. A. Curry.
INSURANCE LICENSES AND AGENCY NOTES
The Merchants Casualty Company, which was writing
sickness and accident insurance in the province of Quebec,
has been authorized to include the business of automobile
insurance.
Registration has been granted to the Merchants Marine
Insurance Company, Ltd., to transact the business of fire and
automobile insurance in the province of Quebec. John
Jenkyns, 17 St John Street, Montreal, is chief agent for the
province.
The Travelers Insurance Company and the Travelers In-
demnity Company, Hartford, Conn., announce the removal of
their Toronto office from the Standard Bank Building to the
Temple Building, at the corner of Bay and Richmond Streets.
A Toronto office has been opened by the Ontario Equi-
table Life and Accident Insurance Company, of Waterloo,
Ont., at 204 Brass Building, Yonge and Adelaide Streets.
G. T. Baker, formerly one of the superintendents of the
Metropolitan Life, has been given charge.
It was recently announced that the Scottish-Canadian
Underwriters' Agency had withdrawn from Manitoba. This
bare statement gives an erroneous impression, for, while the
agency has ceased to exist, the business lias been taken over
by the Scottish-Canadian Assurance Coi-poration, which re-
cently obtained a license from the Dominion, and has also
been registered to transact business in Manitoba.
D. W. Mason, formerly superintendent of the Metro-
politan Life Insurance Company at Brantfoi'd, Ont., has been
appointed superintendent at Hamilton, Ont. A. G. Bradley,
who was formerly Hamilton superintendent, has been ap-
pointed a supervisor for the Canadian field, with head-
quarters at the home office in New York.
Clarence A. J. Miller, who has been connected with the
Employers' Liability Assurance Corporation, Limited (fire
department), Montreal, serving in various capacities, and
more recently as examiner and inspector, has been appointed
by the Northwestern Mutual Fire Association as manager of
their Eastern Ontario branch, with headquarters at Ottawa.
Mr. Miller began his insurance career with the Liverpool and
London and Globe Insvirance Co.
The Hail Audit and Statistical Bureau, of Chicago, has
opened a branch in Regina, Sask. This company will repre-
sent the hail departments of the ^tna Insurance Company,
Springfield Fire and Marine Insurance Company, and the
Insurance Company of Noi-tli Amei-ica. Operations commenced
on February 15, and the company has leased premises at
815-17 McCallum Hill Building.
J. T. Hanna, of the New York Life Assurance Company,
who was transferred to the company's Los Angeles office last
fall, has returned to Winnipeg and will resume his former
position with the Winnipeg office.
C. E. Morton has withdrawn from the Winnipeg partner-
ship formerly doing business as Morton and Smith, and has
opened up a general fire loss adjustment business at 322 Main
Street, Winnipeg.
John W. Freeborn, formerly inspector of the Canadian
Surety Company, Winnipeg, has been appointed to the newly-
created office of supei^'isor of claims department.
Alfred Richard has been appointed superintendent to
the Quebec provincial branch of the Northwestern Mutual
Fire Association of Seattle, with headquarters at the Beard-
more Building, Montreal. Mr. Richard has been connected
with the insurance profession for a considerable number of
years and has experience in all branches of fire insurance
work, principally with the Liverpool and London and Globe,
and as special agent for the Western Assurance Co. Mr.
Richard will act as assistant to the provincial manager,
James R. Wright, and commences his duties immediately.
M. P. Langstaff, foi-merly actuary of the Dominion Life
Assurance Company, has associated himself as agency in-
structor with the Toronto branch of the Manufacturers Life
Insurance Company, 10 Adelaide Street East. For a short
time Mr. Langstaff was associated in an organizing capacity
with the Ontario Equitable Life and Accident Company, re-
cently formed.
March 4, 1921
THE MONETARY TIMES
INTEREST
RETURN
INVEST YOUR SAVINGS
in a 5}4% DEBENTURE of
The Great West Permanent
Loan Company
SECURITY
Paid-up Capital $2,413,018.81
Reserves 1,050,000.00
HEAD OFFICE, WINNIPEG
BRANCHES: Toronto, Regina, Calgary,
Edmonton, Vancouver, Victoria ; Edinburgh,
Scotland.
CANADA PERMANENT
MORTGAGE CORPORATION
QUARTERLY DIVIDEND
Notice is hereby given that a Dividend of THREE
PER CENT, for the current quarter, being at the rate of
TWELVE PER CENT. PER ANNUM
on the paid-up Capital Stock of the Corporation, has been
declared, and that the same will be payable
FRIDAY, THE FIRST DAY'OF APRIL
next, to Shareholders of record at the close of business on
the Fifteenth day of March.
By order of the Board,
GEO. H SMITH. Assistant General Manager.
Toronto, February 23rd. 1921.
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building. London. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PURDOM. K.C.. President NATHANIEL MILLS. Manager
The Hamilton Provident & Loan Society
Head Office. King Street. Hamilton. Ont.
Capital Paid-up. $1,200,000. Rocrvc Fund and Surplus
Profits, $1,280,570.59. Total Axeln, $4,764,339.21'.
TRUSTEES AND BXECUTOKS are authorized by Law to invest Tru5t
Funds in the DEBENTUKES and SAVINGS Dt^PAKTMBNT of this
Society.
GEORGE HOPE. President U. M. CAMERON. Treasurer
^"^ Ontario Loan
& Debenture Co.
LONDON Incorporated 1870
CAPITAL AND Undivided Profits
Canada
$3,900,000
512
SHORT TERM (3 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
512
JOHN .McCLARV. President
A. M. SMART. Manager
/^V'ER 200 Corporations,
^^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG. Man.
THE TORONTO MORTGAGE COMPANY
Office, No. 13 Toronto Street
Capital Account. »:'il.S.'.0.<M» Reserve Fund. «IB;<I.00<>.(MI
Total Assets. l!i:i,249,l.'>4.'iU
President. WELLINGTON KKANCIS. Esq.. K.C.
Vice-President. HERBERT LANGLOIS. Esq.
Debentures issued to pay .S%. a Legal Investment for Trust Funds.
Deposits received at 4% interest, withdrawable by cheque.
Loans made on improved Real Estate on favorable terms.
WALTER GILLESPIE, Manager
5ijc per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agetits for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inqairiet Inoittd
drneral Manager LIrul.-C'ol. <i. U. DOKRELL
Canadian Guaranty Trust Company
HEIAD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in an; other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official .Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office - - Swift Current, Saskatchewan
TOHN R LITTLE. Managiug Director
22
THE MONETARY TIMES
Volume 66.
TRADE SITUATION HAS CHANGED BUT LITTLE
Changes in the Last Report Not Remarkable — Exports to
Italy Have Trebled in a Year — Relations With West
Indies Are Being Maintained on a Favorable Basis
CHANGES in the trade statement for the twelve months
ended January, 1921, are largely of a repetitious nature.
There is one point of significance, however, and that is that
our imports from the United States are on the decline. This
fact is not apparent from the figures given below, but the
previous statement issued by the Dominion Bureau of Statis-
tics shows purchases fropi our neighbours to the south of
nearly $922,000,000.
Another favorable factor which has not received a great
deal of attention is the trade relations between Canada and
Italy. It will be seen that exports to the country in question
have more than trebled over a period of one year, and, ac-
cording to authoritative reports, there is a chance for still
further improvement. W. McL. Clarke, trade commissioner
for the Dominion to the Mediterranean countries, has re-
turned from his headquarters in Milan, Italy, to interview
merchants interested in trade with any of the countries in
his territory, including Italy, Greece, Svidtzerland, Spain,
Portugal, Egypt and Northern Africa. With special reference
to Italy, Mr. Clarke states that the country is fast re-
cuperating, and that there is now established a government
with a firm leader, and there does not seem to be any chance
of an outbreak of Bolshevism. There is a good market for
all sorts of agricultural products and other Canadian goods,
including furs, coal, nickel, boots, shoes, asbestos, codfish,
machineiy and many others. The Canadian Pacific Ocean
Services, Limited, will shortly open a new trade route to
Twelve Months ending January «:•
Dutiable Goods 519,811,560
Free Goods 403,309,488
Total imports (mdse.) 923,121,048
Duty collected.
Total exports (mdse.)
Imports by Countries
United Kingdom
Australia
British East Indies
British Guiana
British South Africa
British West Indies..
Hong Kong
Newfoundland
New Zealand
Other British Empire
Argentine Republi'-.
Belgium
Brazil
China
Cuba
France
156.826,758
Italy
Japan
Netherlands
United States
Other Foreign Countries
Exports by Countries
(Canadian Produce only.)
United Kingdom
Australia ,
British East Indies
British Guiana
British South Africa
British West Indies
Hong Kong
Newfoundland
New Zealand
Other British Empire
Argentine Republic
Belgium
Br
China
Cuba
France
Greece
Italy
Japan.
Netherlands
United States
Other Foreign Countries .
,888,904
,966,943
,844.315
,707,719
,318.194
,910,782
,248.744
,366,942
.758,214
.207.278
.636,582
6.748
.165.207
,953,899
,528.246
,598,951
18,927
619.579
,213,215
562,854
,146,209
.452,596
?,040.790
1,459.918
!,0!0,280
2,381,358
1,140,076
J,325,916
987.836
1,110.689
1,649,910
>.601,760
2.7S7.845
709.616
!,938,S33
i,917,267
>. 393,736
5,893,912
9,150
1,557.254
).855.334
564,225
i,337,307
1.105.554
1920
630.826.112
339,953.098
97,396,449
1,476.735
14.101.823
7,891,640
718,258
10,851,118
1,830,143
2,015.201
3,607,762
1,276,248
2,399.821
592,319
1,735,284
1,195.649
12.102,429
7,983,040
552,757
802,231
13,314,778
1,812,075
754,652.222
32,471,228
510,042,555
13,420.447
6,865,727
3,009.116
11.156.865
11.178.858
976,513
15,885,684
8,123,565
7,613,792
7,443,223
22,231,806
2.140,260
5,272.285
5,544 366
66,543,741
22,844.294
17.115,794
7,639,535
4,975,809
456.683.481
35.864.843
226,248.605
849,152
16,704,975
6.938,632
199,121
15,733,223
4,781,646
3,069,845
4.287.379
1,231,802
3,294.687
4,372,900
2,339.159
1,874.937
34,011,497
20,038.641
950,745
1,810,111
12,674.928
3,857.468
898,984,675
41,319,767
332,063,720
17.446.913
6,535,550
3.690,875
14,221,064
13.318,245
2,345,742
17,370,934
11,099,850
4.603,051
7,470,770
45,741,230
3,490,587
6,393,51 1
7,217,942
29,126.017
25,869,139
54,567,390
7,040,910
19,950,930
551.522,444
54,534,770
Mediterranean ports, and this will further aid the situation.
Our exports to the British West Indies are being main-
tained on a favorable basis, but imports from there exceed
our sales. There is a growing demand for our products, how-
ever, according to the Department of Trade and Commerce,
and ultimately we should be able to sell more than our pur-
chases. The demand for iron products is a noticeable feature
of the growing trade. Iron pipes for water and gas supplies
and hoops and puncheons, which were formerly imported from
Great Britain, are now being purphased fi'om Canada. Fac-
tories in Canada are supplying stills for the manufacture of
rum. Canadian cement also figures largely among the articles
imported.
CITIZENS' RESEARCH INSTITUTE OF CANADA
At the annual meeting of the Citizens' Research Insti-
tute of Canada, held in Toronto on February 28, the director,
Dr. H. L. Brittain, reported that twenty publications — fifteen
general bulletins, two special bulletins and three parrtphlets —
had been issued. The mailing list numbers about 3,000, and
they have had publicity in the press. Addresses have been
given before many clubs. "This field," says the report,
"should be cultivated, as many can be reached by word of
mouth who cannot be reached otherwise."
The National Board of Trustees elected are, for one year
(1921)— J. P. Hynes, Toronto; F. W. Rounsefell, Vancouver;
Wm. Rutherford, Montreal; A. Whittemore, Calgary; Frank
Wise, Toronto. Two years — G. H. Barr, Regina; T. H. Esta-
brooks, St. John; F. Barry Hayes, Toronto; Reg. V. Harris,
Halifax; Oliver Hezzelwood, Toronto. Three years — J. P.
Bell, Hamilton: Lieut.-Col. W. J. Brown, London; A. L.
Crossin, Winnipeg; John Firstbrook, Toronto.
MONTREAL AND QUEBEC SAVINGS INSTITUTIONS
Further changes in the position of the Montreal City
and District Savings Bank and La Caisse d'Economie de
Quebec in the direction previously noted are shown in the
January statement. Savings deposits substantially increased
in both institutions. Holdings of cash and securities are con-
siderably higher. The Montreal bank shows a reduction in
loans, but the Quebec institution reports otherwise. The fol-
lowing are the principal comparisons: —
Montreal City and District
Jan., 1921.
Dom. gov. dem. dep... $ 93,.364
Other dem. deposits . . 46,289,808
Total liabilities 47,038,184
Gov. and other sec. . . . 13,325,428
Cash : 8,567,488
Can. municipal sec. . . . 15,204,085
Loans on bank stocks. 863,243
Loans on other sec 9,130,405
Total assets 50,154,177
Caisse d'Economie de Quebec
Jan., 1921. Dec, 1920,
Sa%'jlngs Bank
Dec, 1920. Jan., 1920.
$ 94,243 $ 972,371
45,448,298 40,982,767
46,090,745
12,476,563
8,173,364
15,508,218
837,110
9,314,280
49,262,765
Dom. gov. dem. dep...
Other dem. deposits . .
Total liabilities
Gov. and other sec. . . .
Cash
Can. municipal sec. . . .
Loans on bank stocks.
Loans on other sec
Total assets
P10,711,418
11,877,752
1,673,521
1,709,277
4,066,980
303,694
3,221,694
13,774,262
$10,579,595
11,635,858
1,678,521
1,574,147
4,067,583
302,825
3,181,597
13,532,368
42,210,739
10,902,499
6,636,242
15,563,863
709,603
8,467,571
45,301,208
Jan., 1920.
$ 357,605
10,209,265
11,357,549
1,679,656
1,620,782
4,082,464
270,844
3,098,423
13,167,750
A new branch of the Canadian Manufacturers' Associa-
tion was formed at Three Rivers, Que., on February 10, with
about fifty members, states R. W. Gould, secretary. It will
embrace the city of Three Rivers, Grand Mere, Shawinigan,
Victoria Paxils and other towns in that vicinity. Vivian Bur-
, rell was elected chairman of the branch, and Anselme Dube,
of Anselme Dube, Ltd., will be vice-president.
March 4, 1921 THEMONETARY TIMES 23
iiiiiiiuiniii iiiiiiniiiiiniiiiiiiiiiiiii iiiuiiiiniiiiuiiiiiiiiiii iiiiiiiiraiiiiiiiiiiimiiiiiiiraiiiiiuiiiiiiiiiiiii i nniiiiiiiinmiramiiiii mil iiiiiii iiiiiiiinnuiiiraiiiiii in iiiiiiiiiiiuiiiiiiiiiiii iiiiiiimiiimiiiii iinii iiuiimii miiiiiiiiiin iiiiiiiiiiiiuuiiiii iiiliiiii|
THE NORTHERN LIFE I
ASSURANCE COMPANY OF CANADA
has found 1920 to be a year of Splendid Progress as the following |
figures vv^ill show : |
1919 1920 Increase I
Income for the year 806.487.75 955,392.55 18.5% |
Policies issued and revived ... 6,294,139.00 8,873,862.00 41.0', |
Insurance in force December 31st 17,879.907.00 22,190,672.00 24.1 |
Policy Reserves December 31st ... 2,709,424.30 3,051,604.89 12.61 |
Total Assets December 31st ... 3,350,808.78 3.690.401.13 10.1 i
For particulars of contracts and available territory communicate with us to-day.
A copy of the last Annual Report will be mailed on request.
HEAD OFFICE . . - - LONDON, ONTARIO
456 I
iiiiiiiiiiiiiiiiuiniiiiiiiiiiiiiniiiiiiiiii'.''
Operated Under the Same Management
{Incorporated by Special Act | , . j looox
of the Parliarrxent of Canada) I (Incorporated 1892)
THE PREMIER TRUST The PEOPLE'S LOAN and
COMPANY i SAVINGS CORPORATION
Head Office: The People's Buildings, London, Ont.
Branch Office: 14 Sandwich St. W., Windsor, Ont.
Acts as
Authorized Capital
$5,000,000
Administrators. Executors, Trustees and
Guardians and other Trust Functions.
Subscribed Capital
Reserve
Surplus
300.000
65.000
567,972
Special attention given to the Management
Assets
1.094.703
of Real Estate in London or Windsor.
DEBENTURES
Issued in sums of $100 and up with.interest coupons at
Correspondence Invited
5A% per annum, payable half-yearly.
W. F. ROOME, M.D., Ex.-M.P. SENATOR JOHN
MILNE A. A. CAMPBELL WM.
SPITTAL
President 1st VIce-PresId
en
General Manager Secretary -Treasurer
457
24
THE MONETARY TIMES
Volume 66
PUBLICATIONS KECElVEl)
GOVERNMENT CURRENCY
The Times' Book of Canada. — The Times, Printing House
Square, London, Eng.; 292 pp., with index and map; 7s. (id.
Both a history and a description, this booli touches briefly
on Politics, Finance, Education, the chief industries and liter-
ature. The information is, of course, commonplace to the
Canadian, but it is at least interesting to have it presented
with an old land coloring. A good point is that the infor-
ma.tion is up to date, showing that it has not merely been
culled from old books.
Consolidated Tables of Bond Values. — Financial Pub-
lishing Co., Boston; $15 per copy. Limitations of previous
tables of bond values are overcome by this comprehensive
edition, covering yields from 2.90 to 1.5 per cent., maturities
from (i months to 100 years, and coupon rates of 3, 31/2, 4,
4%, 4^2, 4%, 5, 514, 51/2, 6, 61/2, 7, 7V2 and 8 per cent. It
will, therefore, meet all reasonable requirements as regards
str&ight term bonds.
5,000 Facts About Canada.— By Frank Yeigh. Canadian
Facts Publishing Co., 588 Huron St., Toronto; 72 pp.; $.30.
The 1921 edition, just published, gives the usual good selec-
tion of information about the Dominion, the provinces and
leading cities. Industry, finance and trade are dealt with
at length.
Valeurs Mobilieres-L'Obligation et L'Action. — By H. L.
de Martigny. This 51-page booklet, published in French by
Rene T. Leclerc, bond dealer of Montreal and .Quebec, is for
distribution among investors. It describes bonds and stocks,
and how money may be profitably invested through these
channels. Another recent booklet published by the same
house as part of its "Savings Library," is "Le Patriotisme
du Portefeuille, Le Pret a Interet" (Patriotism of the
Pocketbook, the Loan at Interest. )
Wrigley's Alberta Directories. — Published by Wrigley
Directories, Ltd., Vancouver; 832 pages; $10. This is a com-
plete directory of Alberta, giving the names of residents in
the cities, towns and villages. There is also a classified
business directory for the province as a whole.
Heaton's Canadian Export Book. — He&ton's Agency, Tor-
onto; $5.00. Towards the end of 1919, Heaton's Agency of
Toronto, was commissioned by the Canadian Trade Commis-
sion of the Dominion government to prepare a standard ex-
port book, following the style of Heaton's Annual, which is
now familiar to every commercial firm in Canada. This
book, which has now appeared, contains a full directory of
the seaports of Canada, showing loading, wharfing and trans-
portation facilities, etc., with maps of harbors, valuable notes
on shipping and marine insurance, an ofiicial directory, ex-
change tables, etc. The book is also useful for three things:
A directory, containing the names, addresses, cable codes, etc.,
of over 2,500 firms who state that they are prepared to fill
export orders, with a complete list of products exported; a
comprehensive encyclopedia of the manufactured articles
and natural products exported by Canada; and a list specially
prepared by the Dominion Census Bureau showing in detail
the products exported fi-om Canada to every country in the
world. None of this information has hitherto been available
in handy form. This is to be an annual production and a
companion book to Heaton's Annual. As a text book it
shoijld be invaluable to every commercial and financial firm
that is in any way interested in Canadian export trade.
The Thunder Bay Life Underwriters' Association held
their annual meeting recently, and the following officers were
elected for the ensuing year: President, M. Mannist, Great-
West Life; vice-president. Captain H. E. Lloyd-Owen, North
American Life; secretary-treasurer, H. V. Rowe, London
Life. Executive committee — J. L. Routly, Imperial Life;
C. H. Philpot, Monarch Life; A. R. Traynor, Prudential
Life; entertainment, J. E.Ryan, Imperial Life; membership,
S. J. Day, London Life.
Another large decline is shown in Dominion note circu-
lation, the January figure being $293,619,721, as compared
with $311,714,486 in December and $326,839,592 in November.
At the same time there has been an increase in the amount
of gold held against such notes of about $800,000. Accord-
ingly, the amount of Dominion notes outstanding has been
reduced from $158,707,960 to $140,623,075. Circulation in
January, 1920, was $303,678,278, against which were held
approved secuj-ities totalling $149,289,375, and gold amounting
to $105,16.5,301. The figures for January, 1921, are as fol-
lows:—
27,743 25
1.296,094 67
5.673,015 00
),2S3,0I8 50
37,715 00
5,805.835 00
3,800 00
sioo.
•Ssoo.
si.ooo
$500 Legal Tender Notes for Banks.
» 1,000
85.000
$50,000
»10,.
820..
850..
$500
.839,000 00
,395.000 00
71,500 00
,097.000 00
i.920,000 00
1,200.000 00
$293,619,721 42
.$ 11,293 50
6,060 00
4,219 75
2,180 00
840 CO
650 00
2,500 00
$27,743 25
Gold held Jan. 31 st, 1921. by the Minister of Finance 8101.970,015 88
Gold reserve to be held on Savings Banlts Deposits —
lOp.c, on $a9,333,943.11 under The Savings Banks Act 3.933,394 31
Gold held for redemption of Dominion Notes $ 98,036,621 57
Dominion Notes outstanding against deposits of approved secur-
ities, under Finance Act. 1914. $140,623,075 00
DOMINION GOVERNMENT SAVINGS BANKS
A falling off of some $21,500 in deposits and an increase
in withdrawals of about $13,000 brought the balance at the
credit of depositors in the Dominion Government savings
banks well below the ten million mark at the end of Jan-
uary. The balance at the credit of depositors at the end of
the previous month was $10,188,315. Details of the January
statement follow: —
St. John
Nova Scotia :•
Barrington .
Guysboro' - .
Halifax
Kentville....
*LunenburB..
Deposits
for
Jan.. 1921
29,979.83
31,103.00
28.00
44. OU
24,735.73
.s.m ni'
1,108,177.66
1,793,925.15
64,333.3,
77,568.99
!,3I 2.222 46
2 S3, 129.01
,12.00, liii. 726.58
177,767 87 10,366,083 65
Withdraw
als for
Jan.. 1921
Balance on
Jan. 3),
1921
S cts i $ cts.
99.658.7fi
309,989.71
26.010.26
15,271.54
170.80
32,524.94
3,565.53
118.96
534,832.10
1,082,167.40
1,778.653.61
64,333.35
77,398,19
2,279,697.52
249.563.48
66,607.62
9,831,251,5.5
♦Transferred to Post Office Savings Bank
.\t the annual meeting of the Peel County Mutual Fire
Insurance Co., held in Brampton, Ont., on January 31, Moses
Johnston was elected president and J. J. Stewart secretary-
treasurer. E. P. Heaton, Ontario fire marshal, gave an
address.
March 4, 1921 THEMONETARYTIMES 25
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The Hamilton Provident and
Loan Corporation
iiiiiuiJiJiuuiiiimiuiiliiiiJiiiiiiiiiJiiiiiiiiiiiiiiiiiiiJiiniiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiii
The Forty-Ninth General Annual Meeting of the Shareholders was held at
the Corporation's Head Office, Hamilton on February 28th.
iiniiiliiiiiiilHiuililillliiiiniUi
ililllJIUIIUIIIIUIIIIIUIIIIIIIIilllUUIIIIIUII
The net profits for the Year, after deducting all interest due and accrued on borrowed
capital, cost of management, and all other charges amount to $181,231.42.
Which has been apportioned as follows :
Two Half- Yearly Dividends at the rate of nine per cent, per annum $ 108,000.00
Government, Business and War Taxes 19,337.02
Added to Reserve Fund 50,000.00
Credited to ContinKent Fund 3,894.40
$ 181,231.42 i
iiiiiiiuiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiuiiiMiiinniiiiiiiiiieiiitimiminaniitiiiM^
ASSETS.
Office Premises in Harnilton and Brandon. $
Real Estate held for sale
Mortgages —
Principal $4,054,4.50.82
Interest 146,474.53
iiiiunmiiiiiiinawniiiiiliMiiinriiiiiiiaiiininuniiiimiimimiiiiiiiiiiiiimiiiiijiiiiiiiiiiiiiiiiniiiim^^ ■
93,000.00
17,470.00
Loans on Corporation's own stock
Dominion of Canada and Pro-
vince of Ontario securities
owned $ 184,498.00
Canadian Municipalities and
School District Deben-
tures owned 108,501.70
4,200,925.35
8,372.30
LIABILITIES.
To the Public:
Debenture Stock $ 372,786.66
Sterling Debentures 520,245.93
Currency Debentures 350,594.30
Interest Accrued on Debentures 14,685.25
Savings Deposits 944,665.36
Provision for Income War Tax 16,207.41
Balance due Borrowers 11,332.21
-$2,230,517.12
Cash in chartered banks
Cash on hand
, .$ 181,555.66
5,781.81
292,999.70
187,337.47
To the Shareholders:
Capital subscribed $2,000,000.00
Capital fully paid $1,000,000.00
Capital partly paid 200,000.00
Reserve Fund 1,300,000.00
Contingent Fund 15,-587.70
Dividend (payable 3rd Jan-
uary, 1921) 54,000.00
$4,800,104.82
$4,800,104.82
GEORGE HOPE,
President
D. M. CAMERON,
General Manager
niiiiiiiiiminiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiniiiiiiiiiiniiiiiiiiiiiiiiiiniuiiniiiiniiiiiiiiiiiiiiiiiiiiiiiiiinitniiiwiiu^^^
The Directors were re-elected as follows:
Messrs. GEORGE HOPE. JOSEPH J. GREENE, HENRY L. ROBERTS
W. A. WOOD. STANLEY MILLS WILLIAM HENDRIE
-$2,569,587.70 |
■iiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiittiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiinn^
26
THE MONETARY TIMES
Volume 66.
MONARCH FIRE INSURANCE COMPANY
Since 1918 the Monarch Fire Insurance Company, To-
ronto, has made good progress, according to the annual re-
port for 1920, which has just been made public. The premium
income last year was $134,256, compared with $52,906 in
1918. Losses amounted to $55,698, while two years previous
the figure was >'i>28,909. Expenses of management are shown
as $47,817, compared with $21,206 in 1918.
The company has total assets of $142,110, being an in-
crease of $44,845 over the two years. Bonds and debentures
owned by the company amount to $97,255. The company is
operated on a cash mutual and stock basis. There is a sur-
plus of $55,636.
CANADIAN FIRE INSURANCE COMPANY
The Canadian Fire Insurance Company, Winnipeg, has
now established itself among the more important fire under-
writing companies of the Dominion. Last year the premium
income was $698,373 gross, being an increase of $153,512
over the previous year, while the net premium income showed
an increase of $44,900 over 1919. The ratio of losses incurred
to premiums earned was 33.34 per cent., as compared with
33.23 per cent, previously, while the ratio of expense to pre-
miums was 35.70 per cent.
As a result of its profitable experience the company was
enabled to pay a bonus on its paid-up capital of $1,000,000
of 2 per cent., making a total distribution to shareholders of
10 per cent. Interest on investments and bank balances
amounted to $76,426, as against $70,600 in the previous year.
There is a surplus of $367,273, against $294,823 at the end
of 1919.
The company has now total assets of $1,817,299, com-
pared with $1,681,115 in the previous year. The increase is
largely the result of the enlargement of the holdings of first
mortgages on real estate and bonds and debentures, which
now total $1,524,508.
The automobile insurance department, which was estab-
lished in 1919, was further developed during last year with
satisfactory results. In May last the company established a
general agency for the province of Quebec in Montreal, and
is now actively represented in all parts of the Dominion and
in Newfoundland.
BRITISH NORTHWESTERN FIRE INSURANCE CO.
The net premium income of the British Northwestern
Fire Insurance Company, Toronto, for 1920, amounted to
$221,747, being an increase over the previous year of $100,-
970. Losses for the year, paid and outstanding, amounted to
$76,045, and expenses $76,781, show a loss ratio of 34.29 and
expense ratio of 34.62. Investments of the company now
stand at $364,413. The net revenue received from these
amounted to $18,193. After setting aside $55,281 for increased
government reinsurance reserve and making provision for
depreciation and all liabilities incurred, but not yet paid,
including reserve for taxes, there was a net profit on the
year's business of $22,796, which was transferred to surplus,
bringing that account up to $106,344.
Explaining the non-payment of dividend to shareholders,
Edward Brown, president, remarks: "Due to the large in-
crease in the premium income, it is necessary to set aside
a substantial amount on account of government reinsurance
reserve, and, taking into account the present imcertainty of
conditions in trade, your directors do not consider it advis-
able to pay any dividend at the present time, but rather that
the reserve and surplus be maintained, thus ensuring the
retention of the confidence of our policyholders."
It will be remembered that the British Northwestern
Fire was taken over by the Eagle Star and British Dominions
Insurance Company in the spring of 1920, and all the polices
are guaranteed by the latter company. Assets now total
$512,457, as compared with $368,872 in 1919.
DIVIDEND NOTICES
DOMINION TEXTILE COMPANY, LIMITED
NOTICE OF DIVIDEND
A dividend of two and one-half per cent. (2 14%) on the
Common Stock of the Dominion Textile Company, Limited,
lias been declared for the quarter ending 31st March, 1921,
payable April 1st to shareholders of record March 15th, 1921.
By Order of the Board.
JAS. H. WEBB,
Montreal, 28th February, 1921.
Secretary-Treasurer.
461
THE CANADA LANDED AND NATIONAL INVESTMENT
COMPANY, LIMITED
DIVIDEND No. 136
Notice is hereby given that a Dividend of Two and One-
half Per Cent, (being at the rate of ten per cent, per annum)
on the amount paid up on the Capital Stock of this Company
has been declared for the quarter-year to the thirty-first day
of March, 1921, and that the same will be payable at the
office of the Company, 23 Toronto Street, Toronto, on and
after the first day of April, 1921, to Shareholders of record
at the close of business on the seventeenth day of March,
1921.
By Order of the Board.
EDWARD SAUNDERS,
Managing Director.
Toronto, 23rd February, 1921.
454
THE MONTREAL CITY AND DISTRICT SAVINGS BANK
Notice is hereby given that a Dividend of two dollars
and fifty cents per share has been declared on the Capital
Stock, called and paid up of this Bank, and will be payable
at its Head Office in this city on and after Friday, April first
next, to shareholders of record, Tuesday, March fifteenth
next, at three o'clock p.m.
By Order of the Board.
A. P. LESPERANCE,
General Manager.
Montreal, February 26th, 1921. 459
Condensed Advertisements
" Positions Wanted," 3c per word ; all other condensed advertisements
Sc. per word. Minimum charge for any condensed advertisement. 65c
per insertion. All condensed advertisements must conform to usual
style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance ; 50 per cent, extra if charged.
SECRETARY-TREASURER, age 30, of large company
in British Columbia, desires connection in similar capacity
with well-established business in Ontario, Hamilton preferred.
First-class accountant, with excellent credentials. The more
responsibility to be assumed, the better. Prepared to go east
immediately for interview for any legitimate proposition.
Apply by wire or letter to H. Anscomb, 1921 Government
Street, Victoria, B.C. 453
March 4, 1921
THE MONETARY TIMES
26a
New Issue
$1,000,000
HOWARD SMITH PAPER MILLS
LIMITED
(Incorporated under Letters Patent' of the Dominion of Canada)
7% First Refunding Mortgage Sinking Fund Gold Bonds
Dated January ^nd, 19'21. Due January 2nd, lifJtl. Principal and interest payable at the Royal Bank of Canada,
Montreal or To-ronto, or at the office of Aldred & Company, Limited, New York. IN NEW YORK FUNDS AT
THE OPTION OF THE HOLDER. Interest payable January 2tid and July 2nd.
Trustee: The Montreal Trust Company, Montreal.
Of the total of $7,000,000 there is authorized to W presently issued. $3,500,000, of which there is
now being- sold $1,000,000
There will be held in escrow to retire the total outstanding 6% First Mortgage Bonds of
Howard Smith Paper Mills, Limited, and Toronto Paper Mfg. Company, Limited 1,490,000
There will be held in escrow against balance to become due on timber limits 580,000
There is being held to be disposed of for the purposes of the Company as the Directors may
from time to time determine 430,000
$3,500,000
Leaving $3,500,000 for future capital requirements, issuable according to the terms of the Deed of Trust.
SINKING FUND — Beginning January 1st, 1923, there will be provided an annual Sinking Fund equivalent to 2%
of the total amount of Bonds outstanding.
RETIREMENT OF OUTSTANDING SECURITIES— An offer of exchange is being made to the holders of the
outstanding 6% Bonds of the Howard Smith Paper Mills, Limited, and the Toronto Paper Mfg. Company, Limited,
providing for the deposit of their Bonds and the acceptance by them of 7% Bonds of this issue held by the Trustee
in escrow.
Upon the retirement of all such bonds by exchange or otherwise, and upon payment of the balance due on timber
limits, the presently authorized issue of bonds will be secured by a first mortgage and charge on the entire assets
of the company.
LOCATION AND BUSINESS— Howard Smith Paper Mills, Limited, is the largest manufacturer of high-grade
writing and book papers in Canada. It is now the owner of the properties and assets of the Toronto Paper Mfg.
Company, Limited, which it has acquired and taken over as a going concern as and from January 1st, 1921. The
Company operates three modern paper mills situated at Beauharnois and Crabtree Mills, Quebec, and Cornwall,
Ontario. In addition, at the latter point a sulphite mill is operated together with a bleaching plant. The aggregate
'.■apacity of the three plants is:
100 tons per day of high-grade book, writing, bond and ledger papers. .
70 tons per day of high-grade bleached sulphite.
The Company also owns about 500 square miles of timber limits. '
It is proposed later to extend the operations of the Company in the production of soda pulp and book papers
manufactured therefrom, as well as bristol board, filled blanks, etc., which products are now imported into Canada
in large volume. It is advantageous and a matter of national importance to provide these facilities in Canada.
.\SSETS
The fixed assets of the Company, excluding good-will, represent a book value of $6,472,000
The sui-plus of current assets over current liabilities, including the proceeds of this issue, will
amount to 2,200,000
Total Assets $8,672,000
Or a'fter deducting the amount of the present outstanding bonded debt, equal to over seven times
the par value of the Bonds now to be issued.
The actual value of the Fixed Assets is estimated at $8,000,000
EARNINGS — The average annual net earnings for the past three years ending December 1st, 1920, after deducting
Bond interest and depreciation, were $477,288, or sufficient to pay about seven times the interest charges on Bonds
now to be issued.
(The Toronto Paper Mfg. Company's earnings are included only for the past two years, during which time its
entire issue of Capital Stock has been owned by the Howard Smith Paper Mills, Limited).
The net earnings after Bond interest and depreciation for year ended December 31st. 1920, amounted to $815,683,
or ovei- eleven times the interest cha-rges on Bonds now to be issued.
PRICE: 91 and Accrued Interest, Yielding 7.90%.
.\fter a thorough investigation of the Company's properties and earning capacity and a careful study of its pro-
gre.ss and standing in the trade, we strongly recommend the.se Bonds for investment.
Descriptive circidaf irill be mailed on request.
ALDRED & CO. LIMITED
Royal Trust Building, MONTREAL
R. A. DALY & CO. HANSON BROS.
Bank of Toronto Building, TORONTO Guardian Building, MONTREAL
•IGS
THE MONETARYTIMES Volume 66.
Lniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin^
THE
NORTH BRITISH AND
MERCANTILE INSURANCE
COMPANY
Established 1809 Entered Canada 1862
Total Assets Exceed $140,000,000
Canadian Investments Exceed $5,000,000
Investments West of the Great Lakes Exceed
$1,000,000
MR. H. N. BOYD, RF.A., Life Manager
LIFE INSURANCE — Policies are issued for all classes of
Life Insurance business at the best possible rates and terms.
All those considering taking out a Life Policy should write
and obtain a leaflet from the Company.
ANNUITIES^The Company has issued new annuity rates
w^hich are of a most favorable nature.
HEAD OFFICE
84 St. Francois Xavier Street, MONTREAL, P.Q.
Randall Davidson, Manager
North Western Branch
909-911 Paris Building, WINNIPEG
C. A. Richardson, Branch Manager
March 4, 1921 THE MONETARY TIMES
OCCIDENTAL FIRE INSURANCE
COMPANY
Under the coDtrol of the North British and Mercantile Insurance Company
HEAD OFFICE
909-911 Paris Building, Winnipeg
President, Randall Davidson Vice-President & Secretary, C. A. Richardson
DIRECTORS
S. E. Richards W. A. T. Sweatman Robt. Campbell
Dec. 31st, 1914 Dec. 31st, 1919
Capital Subscribed - - $500,000.00 $500,000.00
" Paid Up - - $174,762.70 $174,762.70
Surplus on Policy-Holders
Account - - - $250,856.35 $423,803.07
TOTAL ASSETS - $359,025.09 $705,199.67
All Investments are in Canadian Securities
FULL DEPOSIT WITH DOMINION GOVERNMENT
illllllllllllllMllllllllllllllllllllllllllllllllllllllllllillOllllllllllllllllllllllllllllllllllllllllllllliyilllli
26d
THE MONETARY TIMES
Volume. 66.
DOMINION PERMANENT LOAN ACTION
A writ to recover amounts of dividends wrongfully ac-
cepted from the defunct Dominion Permanent Loan Company
against 700 sharcliolders was issued in Toronto on Feb-
ruary 26 by Liquidator G. T. Clarkson. The amounts of the
sums which the liquidators claim are due the creditors and
depositors are not totalled, but the dividends were paid out
in several annual payments to the shareholders scattered all
over the Dominion and in some parts of the United States.
The amounts run from $20 up into the thousands.
CM. A. EXECUTIVE MEETING
, Sixty members of the Council of the Canadian Manufac-
turers' Association arrived in Quebec on February 25 to hold
an executive meeting and have everything in readiness for
the big convention to be held there in the month of June next.
The executive delegates came from every section of Canada,
and included President J. S. McKinnon, of Toronto; W. S.
Fisher, first vice-president, St. John, N.B.; J. W. Shaw, second
vice-president, Woodstock, Ont.; S. R. Parsons, past-president,
Toronto; J. H. Fortier, first vice-president, province of Que-
bec section, Quebec; A. Dunbar, vice-chairman, Three Rivei-s,
and others.
THE CANADIAN SURETY COMPANY
In 1920 the Canadian Surety Co. wrote gross premiums
of $402,406 an increase of 60 per cent, over the previous
year, while net premiums written aggregated $289,711, an
advance of 70 per cent, over 1919. At the year's end, the
company had 19,750 bonds and policies in force, covering
insurances of $53,432,663. Total assets increased from $478,-
278 in 1919 to $527,911 in 1920. Reserves in 1919 were $141,-
671 and in 1920 $178,406. The paid-up capital stock and
surplus as of December 31, 1920, amounted to $329,553. The
company has invested in Canadian bonds and debentures
(government and municipal) the sum of $419,968.
A. J. Brown, K.C., of Montreal, was recently elected
to a seat on the board of directors.
STERLING TRUSTS CORPORATION
Owing to the close relationship between the Sterling Trusts
Corporation and the now defunct Standard Reliance Mortgage
Corporation, the business of the former company has suffered
greatly during the past two years. In his report to share-
holders, W. H. Wardrope, president, says: — "As you are no
doubt aware, the majority of the stock in your corporation
is owned by the Standard Reliance Mortgage Corporation,
now in liquidation, and, while your corporation is financially
sound, the publicity attached to the liquidation of the
Standard Reliance has had an effect on our operations dur-
ing the past year. Your directors have been working to-
wards the complete separation, and, while this has not yet
been brought about, progress has been made."
Net earnings for the year 1920 were $34,410, compared
with $62,196 in the previous year. This, with the balance
of $8,279 carried forward from 1919, made a total at the
credit of profit, and loss of $42,689. Continuing the adjust-
ment process, the sum of $21,368 was appropriated in re-
spect of loss on operation of Great Northern Land, Ltd.,
for 1920, leaving a balance forward for 1921 of $21,320.
The assets show heavy reduction from the previous year,
when the total stood at $8,172,234. This year capital assets
are slightly higher at $530,881, guaranteed trust assets are
$588,651, a few hundred dollars above last year, while
estates, trusts and agency assets are $3,066,290, compared
with $7,070,068.
Owing to pending arrangements, the meeting of share-
holders has been adjourned until March 31.
ADDITIONS TO UNION TRUST DIRECTORATE
Important additions were made to the board of directors
of the Union Trust Co., Toronto, at the annual meeting on
February 10, through the election of John B. Laidlaw, man-
ager of the Norwich Union Fire Insurance Society, and S.
R. Parsons, president of the British-American Oil Co. A
large number of shareholders were present, the occasion
being the more interesting as the first annual meeting in the
new head office at Richmond and Victoria Streets.
MUTUAL FIRE UNDERWRITERS OF ONTARIO
At the annual meeting last week the following officers
were elected: President, G. B. Webster, St. Mary's; vice-
presidents, George L. Miller, Jarvis, and T. J. Harkness, Owen
Sound; secretary-treasurer, J. J. Stewart, Brampton. Execu-
tive— W. A. Galbraith, lona; James Ross, Eaterford; J. C.
Dance, Kingsmill, and A. P. McDougall, Melbourne.
V. Evan Gray, superintendent of insurance, advised the
members to confine their underwriting to isolated farm risks,
as, in the opinion of the association, village properties, schools
and churches are extra hazardous risks.
CHARTERED TRUST AND EXECUTOR COMPANY
A substantial increase in estates, trusts and agency ac-
counts is reported by the Chartered Trust and Executor Com-
pany, Toronto, for 1920, but, in general with the experience
of many of the Canadian trust companies, profits were lower,
standing at $38,644, as against $48,368. Estates, trusts and
agency accounts comprise $4,611,354 of the assets, compared
with $4,365,904 a year ago. Dividends paid at 7 per cent,
amounted to $34,008, while $1,000 was reserved for bad or
doubtful accounts, leaving a balance carried forward of
$3,819, as against $1,183 in the previous year. Capital stock
paid up now stands at $479,937, compared with $446,862 a
year earlier. The rest account is $60,000, as against $67,000.
The amount of mortgages held on capital account is $208,449,
as against $241,085, while bonds, debentures and stocks are
$180,130, compared with $164,632. In estates, trusts and
agency accounts, mortgages amount to $1,478,924, compared
with $838,869, and bonds, debentures and stocks are $1,140,-
460, and real estate $1,751,111, these two items together last
year amounting to $3,376,533.
EDMONTON FIRE UNDERWRITERS
At the annual meeting of the Edmonton committee of the
Western Canada Fire Underwriters' Association, held on
February 16, progress was reported in the matter of the
formation of a provincial fire insurance agents' association,
and the executive committee was requested to co-operate
with the Calgary committee, with a view to completing the
formation of the new insurance association as soon as pos-
sible.
The guest of the evening was James Taylor, of the E. A.
Lilly Adjustment Agency, who gave an address on the diffi-
culties experienced in making adjustments under prevailing
conditions. The decline in prices of building materials and
on various classes of stocks made the matter of adjustments
of fire losses a difficult matter. R. J. Creighton, inspector of
the Western Canada Underwriters' Association, also spoke.
The officers for the ensuing year were elected as follows:
President, David McManus; vice-president, C. H. Chapman.
Membership committee — P. Herring, H. Milton Martin, R. L.
Green, H. L. McPherson and Chester Martin. It is the inten-
tion of the committee to invite \'isiting managers of com-
panies and representatives of various fire underwriters' or-
ganizations to address the local association during the year.
March 4, 1921
THE MONETARY TIMES
The Bell Telephone Co. of Canada
Comparative Statement of Earnings and Expenses
for the Years 1919 and 1920
Telephone Revenue -
1919
tl4, 149,119.97
1920
$16,513,384.44
Increase
$2,364,264.47
Operation Expense
._ $ 6,735,310.41)
2,507,791.78
$ 9.106.078.22
3.569.162.87
2,885,400.00
734,700.00
$2,370,767.82
1,061.371.09
Depreciation .....
2,316.200.00
654,602.50
569.200.00
80.097.50
Total Telephone Expenses
.._ $12,213,904.68
$16,295,341.09
$4,081,436.41
Net Telephone Earnings
Sundry Net Earnings _
$ 1,935,21529
218,108.94
$ 218.043.35
663,479.53
$1,717.171.94«
445,370.59
Total Net Earnings - .....
% 2,153.324.23
....,_ 670.208.22
$ 881,522.88
913,483.97
$1,271,801.35»
243.275.75
Balance _ _
Deduct Dividends 8% _.
i 1,483,116.01
1,440.000.00
$ 3I,961.09t
1,800.010.00*
Debit
1,831,971.09
$1,515,077.10»
360,010.00
Balance Carried to Surplus .-..
Credit
$ 43.118.01
1,875,087.10»
t Deficit.
• Decrease
t 1920 Dividends $1,800,010.00 charged to Surplus previous to 1917.
Balance Sheet, December 31, 1920
Keal Estate
Telephone Plant, etc. _
Furniture. Tools and Supplies
Cash
Bills and Accounts Receivable
Investments _-
$ 5.165.860.48
51.729,192.44
2,311.708.40
I86.888..50
1.682.601.32
2.843.327.87
$63,919,579.01
LIABILITIES
Capital Stock Issued .
(S%-$11,149.000.00)
..(7%— 5,600,000.00)
Accrued Liabilities not due .
Due to Bank
Unearned Revenue
Employees* Benefit Fund —
Surplus and Reserves
5,649.000.00
918.603.26
720.879.78
837.572.10
21.524.24
500.000.00
1.614,999.63
The President to the Shareholders
In his address to Shareholders at the Annual Meeting,
February 24th, 1921, President L. B. McFarlane said: —
"Our orders for new telephone facilities, both local and
long distance, have been greater than any previous year, and
our outstanding difficulty has been to meet the enormous de-
mand for ser\ice. We were not able to satisfy all requests,
but had a net gain of 38,885 subscribers' stations, or 11 V2 per
cent., being the greatest yearly gain in the history of the Com-
pany.
Comparative Financial Result
"The gross receipts show an increase of $2,809,635, but
owing to the mounting costs the expenses for the year, includ-
ing interest, exceeded the revenue, as will be seen from the
financial report.
"The dividends declared during the year have been paid out
of surplus of profits accumulated prior to 1st of January, 1917.
Applications for Revised Rates
"The very lengthy delay in obtaining a rate decision — a
period of over two years — and our consequent inability to
properly finance in the meantime for needed expansion, have
crippled our efforts to properly serve the public. Early in
1918 it was found that the greatly increased cost of operation
made it essential that there should be a substantial and imme-
diate increase in our rates. Application was therefore made to
the Board of Railway Commissioners for Canada in October,
1918, for an increase of 20 per cent. In May, 1919, the Com-
missioners, after testimony, ordered temporary relief by allow-
ing a 10 per cent, increase, being only one-half of the sum
asked for, and it proved entirely inadequate to meet even the
so-called emergency.
"The Board retained the conduct of the case, and requested
us to furnish detailed monthly returns for the succeeding year.
After the expiration of that period, on Aug^ust 5th, 1920, we
renewed in more detail our application, and asked for a general
readjustment of rates.
"This application is still before the Commissioners for de-
cision. Our case was ably presented, and we are hopeful of
receiving a favourable decision.
"Until a decision on the Rate Case is given by the Commis-
sion, it will only be possible to finance for future capital needs
at prohibitive cost. Your Board has felt that this is not in the
interest of subscribers or shareholders, and have therefoi'e sus-
pended expenditure under the 1921 Budget, hoping that rates
may bo authorized whereby we will earn a fair return, insure a
profit which will compare favourably with the return from
other investments of a similar character, and thereby attract
capital at reasonable rates.
Bonds Issued
"In the month of April $5,500,000 of Bonds were offered
and sold to the highest bidders at 93.75% in New York funds,
which netted us 102.2'7f in Canadian funds. These Bonds bear
interest at the rate of 7'~; , and fall due at the same date as our
outstanding Bonds, namely, 1st April, 1925.
Employees Buy Stock
"Another financial transaction of special interest was the
Stock Purchase Plan for Employees, which was approved by
your Board and became effective in August. By this Plan
employees are given the right to purchase at par one share for
each $300 or fraction thereof of the annual rate of pay which
they were receiving at 1st of May, but not exceeding twenty
shares, they agreeing to pay for the same by deductions from
wages. Interest on the unpaid balance is charged at the rate
of 4% per annum, and the account is credited with an amount
equal to dividends declared during the purchase period.
"The offer was taken advantage of by 2,271 employees for
an amount of 8,548 shares, an average of 3.76 shares each.
Progress in Telephone Art
"During the past year many important improvements
were made to our plant, and we are now in a position to give
universal Long Distance service to our subscribers. Even at
our smaller offices subscribers have been connected to very dis-
tant points, both in Canada and the United States, and those
at our larger offices demand long-haul connections daily. For
example, Montreal, Toronto, Ottawa and Hamilton subscribers
have had satisfactory commercial conversations with cities in
Florida, California, Manitoba, British Columbia and the Mari-
time Provinces.
"Our engineers closely follow the development of the Art
generally, but specially of the Multiplex System — or Wired
Wireless as it is commonly called — by which a number of
messages are sent simultaneously over one circuit, and this
system will be used in our plant as soon as the necessity for
extension arises. Its adoption is purely a question of first cost
and annual charges. The Multiplex is as yet expensive, both
in first cost and annual charges.
"Great advances have been made by Witeless Telephony,
but in its present state it is not as reliable as the wire system;
and if wires can be run and maintained between two given
points, it is more efficient and economical to use the wire sys-
tem.
"Wireless or Radio transmission is now used as comple-
mentary to the wired telephone systems, and as further im-
provements in the apparatus are effected its use will be ex-
tended as auxiliary to our present service."
STATISTICS
At Dec. 31, 1920 Increase during Year
Number of Company Stations 376,361 38,885
Number of Connecting and Miscel-
laneous Stations 113,212 6,981
Total Stations 489,573 45,866
Number of Miles of Wire 1,040,986
Number of Central Offices 413
Number of Employees, 31st December, 1920 ^^'^^S
Average Dailv Connections 1920 — Exchange 2,899,522
Average Daily Connections 1920 — Long Distance. 29,458
28
THE MONETARY TIMES
Volume 66.
NORTHERN MORTGAGE CO. OF CANADA
Eleven years of experience in the mortgage and loan
field of Western Canada has resulted in the building up of
a substantial business by the Northern Mortgage Co. of
Canada. In 1920 the net profits amounted to $133,882, from
"which total a. dividend of 5 per cent, was paid, and $37,821
was addcil to the surplus account. There was a good in-
crease in mortgage loans and that account together with
other investments now stands at $3,0(52,810. The average
rate earned on mortgage investments w&s 7.80 per cent., and
on Victory bonds and other securities, b.ol per cent. Real
estate acquired by foreclosure was substantially decreased
during the year, and properties sold brought a profit of $15,-
692 over their boolv value. The amount of real estate on
hand is shown &s $143,152.
The company has a paid-up capital of $1,925,599, and 5
per cent, debenture .stock outstanding of $1,000,000. There
is a surplus of $237,172, and in addition a reserve of $40,000
to provide for any possible loss on investments. There is
also an amount of $29,000, representing actual profit made on
the sale of properties, but which, until the deferred payments
have been met, it is deemed advisable to carry to this reserve
account.
FARMERS' MUTUAL INSURANCE COMPANIES
The third annual meeting of the Farmers' Mutual Hail
and of the Farmers' Mutual Fire insurance companies was
held in Regina on February 1. R. H. Cook is manager of
both. The report of the hail company, of which S. V. Linton
is president showed that the total hail insurance in force
in 1920 was $2,629,400. The premium income was $151,000,
of which, after payment ot losses totalling $53,000, and set-
ting aside approximately $8,000 to take care of bad and
doubtful premium notes, the sum of $50,000 was added to
reserve. The company's risks were hailed in 70 districts
throughout the province during the season as compared with
77 districts hailed during 1919.
M. J. Olsen, of Areola, is president of the fire company.
He stated that 1920 had proven to be a record year in the
history of the company. He was glad to observe from the
auditors' statement that the business written in 1920 had
fxceeded that wi-itten in 1919 by 118 per cent. The auditors'
report was then submitted, and the manager, R. H. Cook,
submitted his report at the same time. It was of particular
interest to the assured to notice that the losses for 1920
were almost exactly equal to those of 1919, yet the business
in force had increased by a very large percentage. Greater
care was being exercised in the selection of risks, and it was
hoped by the new plans that were now being foniied, and
which would be discussed at this meeting, that larger pro-
gress could yet be made in this direction. It was pointed
out that approximately 60 per cent, of the fires in Western
Canada are preventable. It might be of interest to advise
the members that the last loss the company had was caused
by cats pulling the table cloth fi'om the table and upsetting
the lamp, which cost the company $2,140. Other heavy losses
this season had been caused by children playing with
matches; defective chimneys also put in their yearly records
of losses. Many large barns, however, had also been burned
this year by combustion caused by storing damp feed in
the lofts. Many fires had also been reported from oily or
greasy rags.
The thirty-third annual meeting of the Kent and Essex
Mutual Fire Insurance Co. stockholders was held in Tilbury,
Ont., on February 16. The following directors were elected
for a term of three years: Christian Johnson, Kingsville;
Charles T. Sellers, Kingsville; D. H. Brown, Chatham;
Franklin Stokes, Dover Centre; Pierre Oriet, Stoney Point;
C. C. Chauvin, Windsor, was elected director for a two year
term, and T. L. Renaud, McGregor, for one year term.
Kingsville was chosen for the meeting place for next year.
THE
OCCIDENTAL
FIRE INSURANCE
COMPANY
Head Office - Winnipeg, Man.
BALANCE SHEET
As at December 31st, 1920
ASSETS.
Cash in Bank $128,380.43
Agents' Balances 79,539.65
Losses Recoverable 10,525.20
$218,445.28
Debentures: —
Book Value $524,210.30
Less Amount Reserve in Ac-
cordance with Dominion
Government Valuations . . 3,353.80
$520,856.50
Loans on Mortgages 81,483.35
Interest Accrued 7,531.32
$828,316.45
LIABILITIES.
Losses under Adjustment $ 33,805.42
Amount Retained on Account of Re-in-
surance 94,836.11
Sundry Creditors 3,028.81
Taxes, Interest and Commission Accrued 15,615.04
$147,285.38
Reserve for Unearned Premiums 172.514.14
Total Liabilities to the Public $319,799.52
Capital and Surplus:—
Capital Authorized
and Subscribed $500,000.00
Capital Paid Up $200,000.00
Amount at Credit
31st of Decem-
ber, 1919 249,040.37
Transferred from
Revenue Ac-
count, 1920 . . 59,476.56
308,516.93
508,516.93
$828,316.45
RIDDELL, STEAD, GRAHAM & HUTCHISON, C.A.
BOARD OF DIRECTORS:
RANDALL DAVIDSON, President.
C. A. RICHARDSON, Vice-President and Secretary.
S. E. RICHARDS,
R. CAMPBELL.
W. A. T. SWEATMAN.
460
March 4, 1921
THE MONETARY TIMES
29
•UllllillMlllllllllllllllllillllllllllllllllllllllllllllllMIIMIIIIIIIIIIIIIIIIMIIIIIIIIIIIIinilllllllllllllllllllBlllllinillllllllMlllllllllllllllinilllll^
I CHARTERED ACCOUNTANTS I
niiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMMiiiiiiiiiiiiiiiiiiiiiiniiiniuiiiiiiiiiiiiMMiiiiiiriiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiM
KENNETH BOWMAN
Chartered Accountant
(Successor to Baldwin, Dow & BowmanI
EDMONTON
ALBERTA
CHARLES D. CORBOULD
Chartered Accoantant and Auditor
ONTARIO AND MANITOBA
64S Somerset Block. Winnipeg
Correspondents at Toronto, London. Eng-,
David Mowat Donald MacTavish
Mowat, MacTavish & Co-
Chartered Accountants
712 Canada Bldg., Saskatoon, Sask.
\V, A I'.Awr.iN C A. 'F.C.A. England and
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
BraDcb at Nanaimo, B.C.
Telegraphic and Cable Address :
"Nedwab." Victoria. B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problemt
Bank of Toronto Ctiambers
LONDON - ONTARIO
Established 18S_'
W. A. Henderson & Co.
Chartered Accountants
S08-S09 Electric Railway Chambers
Winnipeg, Man.
Arthur E. Phillips & Co.
Chartered Accountants
508-509 Electric Railway Chambers
WINNIPEG - - Man.
Cable Address-" L'nravel."
ROBERTSON ROBINSON, ARMSTRONG & Co.
^AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS.
24 King Street West - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVEUANU
RONALD, GRIGGS & CO.
RONALD, MERRETT. GRIGGS & CO
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Specialists on FACTOhv Costs and Hrodicti
Plione 3420 Bank of
Mai
Hv
TORONTO
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING TORONTO, CANADA
F. C.S. TURNER &C0.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Chartered Accountants, Trustees.
Receivers, Liouidatora
Merchants Bank Bids-. 15 Wellington Street West ToronI
Established ISii^ o j' ni'|,.-Xr
R Williamson. C.A. J. D. Wallace. C.A.
A. , I. Walker. C. A. H.A SbiachCA.
RUTHERFORD WILLIAMSON & CO.
chartered Accounlants. Trustees and
Liquidators
B6 Adelaide Street East, TORONTO
604 McGil.L Building. .MONTREAL
Cable Address-' WILLCO."
Represented at Halifax. St. John. Winnipeg.
HENRY BARBER & CO
EslabUehed 1885
Chartered Accountanta
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railway Buildins.
6 King Street West TORONTq
HARBINSON & ALLEN
Chartered Accountanh
408 Manning Chambers
TORONTO
Norman B. McLeod
Chartered Accountant
AUDITS INVESTIGATIONS
COST ACCOUNTING
803 Kent Bldg. - TORONTO
Phone MAIN 3914
THE MONETARY TIMES
Volume 66.
Federal Charter Over-Rides Provincial Laws
Decision Rendered Last Friday by Privy Council Reverses Judgment
of Supreme Court of Canada — Now Unnecessary for Company With
Dominion Charter to Register in Provinces — A Review of the Cases
A COMPANY holding a Dominion charter cannot be com-
pelled to register under provincial laws in order to do
business in a province, according to a decision of the Privy
Council of Great Britain, announced on February 25. The
provisions of the Companies' Acts of Ontario, Manitoba and
Saskatchewan requiring this are held to be ultra vires.
Among the points made are the power of the provinces
to legislate for incorporation of companies, which is limited
to companies with provincial objects. No express power is
conferred in the British North America Act to incorporate
companies with powers to cari-T,- on business in every pro-
vince, but such power as is covered by section 91 is conferred
exclusively upon the Dominion, and enables the Canadian
Parliament to incorporate companies and restrict the pro-
vinces from interfering with such companies conducting busi-
ness where they choose.
If the condition of taking licenses had been introduced
simply to obtain payment of a direct tax for provincial pur-
poses, or for securing the observance of some restrictions
concerning contracts, which had to be observed by the public
generally, their Lordships would have been prepared to regard
the condition as one vnthin the power of the province to
impose; but even then it would have been requisite to see
that the provincial legislature was not under that guise really
doing something else, such as imposing indirect taxation.
Reverses Supreme Court Judgment
This decision of the Privy Council reverses the judgment
of the Supreme Court of Canada, which was reported in The
Monetary I'imes of May 16, 1919. Several companies were
concerned in the appeal, but the cases were consolidated in
that of Gi-eut West Saddlery Co., vs. the King. The plain-
tiff company along with two others were convicted by a
police magistrate of Regina of violating the provisions of
sections 23, 24 and 25 of the Companies Act of Saskatchewan
and on a case stated to the Supt'eme Court of Saskatchewan
the convictions were affirmed. Section 23 provides that all
companies carrying on business in the province, whether
provincial, Dominion or foreign, shall be registered; that a
penalty of $50 a day will be imposed if they ai'e not regis-
tered ; that "carrying on business" means the establishment
of a permanent place of business. Section 24 provides that
any company may be 'registered on paying the required fees
(foreign companies may be refused registration at the dis-
cretion of the lieutenant-governor-in-council, but that does
not include Dominion companies. ) Section ".^5 provides that
every company complying with the provisions of the Act,
may receive a license to carry on business and the date of
expiration of such license; that the fees shall be determin-
able by the lieutenant-governor-in-council; that a penalty
shall be imposed on certain officers of the companies, not
registered, and which are doing business in the province.
The Supreme Court of Saskatchewan held that the above
provisions, which were in question, were within the powers
of the provincial government to enact — the Supreme Court
of Canada unanimously decided the appeal to that Court
in the same way, holding the sections intra vires.
The reasons for this decision are explained by Chief
Justice Davies, in the following parts of his judgment: —
"As a result I cannot conclude that the legislature in
this instance has exceeded its powers in enacting legislation
requiring all companies, local and foreign, including Do-
minion, to register and pay an annual fee. Nor do I think
the section imposing a penalty upon a Dominion company for
every day it carries on business in the province without hav-
ing paid the annual fee is ultra vires or other than a rea-
sonable sanction to the requirement of the payment of the
annual tax or fee imposed.
"In the result, however, I have concluded that the
Saskatchewan Companies Act as now before us, while in
form to some extent objectionable as seeming to require a
provincial license to enable a Dominion company to carry on
its business in the province may nevertheless be so construed
as to be held to be merely a taxing Act, levying an annual
tax or fee, alike on local companies as on extra-provincial
companies, including Dominion ones.
"The legislature has no power to require the acceptance
of a license from it to enable a Dominion company to carry
on its business in the province. It might require registra-
tion, it might impose an annual tax, it might possibly enact
the penalty clause as a canction for the recovery of the tax,
but it could not compel the company to accept a license from
it to enable it to carry on its business. The company derived
its power to do that throughout the Dominion from the
Dominion who gave it its charter, and while the legislature
could not prohibit or control the exercise of these powers it
nevertheless could, in my judgment, exact the payment of
an annual tax from the Dominion company in common with
other foreign companies and local companies, which itself
created and chartered and could probably enforce the pay-
ment of such tax by the imposition of a penalty. I reach
this latter conclusion, as I have said, with difficulty and
doubt. It is to be regretted that the legislation should take
the form it did, but looking at its essence and construing it
as I do, I will not hold it to be ultra vires."
Similar Case in Manitoba «
In the case of the Great West Saddlery Co. vs. Davidson,
the decision of the Court of Appeal for Manitoba, the ap-
pellant company was incorporated by authority of the Com-
panies Act of Canada and had its head office in Winnipeg.
By the provisions of the companies Act of Manitoba which
deal with extra-provincial corporations, a license has to be
applied for by all those corporations, to the provincial
authorities, and furthermore the license will have to be ob-
tained before these corporations can carry on business in
the province. Ths appellant company did not apply for
such a license, so the defendant, one of its shareholders, in-
stituted an action to force the company to take such a
license, and the attorney-general of Manitoba intervened to
maintain the validtiy of those provisions which were at-
tached by the appellant company.
In the Supreme Court of Canada, Justices Idingrton,
Brodeur, Anglin, held the provisions in question to be intra
vires, Justices Davies and Mignault, dissenting. As being
the most recent decision of the Privy Council on provincial
and Dominion authority regarding incorporation of com-
panies, the decision of this case hinged on the explanation
given by their lordships in the case of John Deere Plow Co.
vs. Wharton [1915].
The decision of the dissenting justices and the reasons
therefor, in this case were given in three paragraphs of Chief
Justice Davies' judgment :• —
' "It seems to be clear from the decision of the Judicial
Committee in the Wharton case, supra, that while to some
extent a provincial legislature may regulate and tax the
activities within the province of a Dominion company, it
cannot for any purpose prohibit or restrict its entry into
the province or its carrying on business there.
"The primary question then with respect to this Mani-
toba legislation is whether the provisions of Part IV. of its
Companies Act, purporting to confer upon such companies
when a provincial license has been obtained, and while it
is in force, power to carry on business in Manitoba, exercise
their powers, enforce their legal rights in the Courts on .;on-
March 4, 1921
THE MONETARY TIMES
31
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMuiHiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiin
I REPRESENTATIVE LEGAL FIRMS I
^iiiiiiiiiiiMiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiniiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiii
CALGARY
Charles F. Adams, K.C.
Bank of Montreal Bldg.
CALGARY - - ALTA.
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barristers, Solicitors, Etc.
Solicitors for Bank of Montreal. The Trust
and Loan Co. of Canada. British Canadian
Trust Co., &c.. &c.
C K P Conybeare. K.C. H. W. Church. M.A.
R. R. Davidson, LL.B.
Lethbridge - - Alta.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince -Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT, SASK.
W. F. \V. Lent. K.C. A
LL.B. H. D. Ma
LENT. MACKAY & MANN
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Cable Address: Lenjor Weslern Union Code
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The ."Northern Trusts Co.. Associated .Mort-
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Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. A. C. Kutherford, K C, LL.D
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LETHBRIDGE Alberta
SASKATOON
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&
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MEDICINE
HAT
and BROOKS. Alt..
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Lester McTaggart
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Canadian B.ink nf Commerce
Moose Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
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405 Westminster Trast Building
NEW WESTMINSTER, B.C.
C. L. OURlE. B.A. B. .M. Wakeling
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Great West Permanent Loan Co. The
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TORONTO
G. W. MORLEY & COMPANY
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802 Lumsden Building, Toronto
Solicitors for A. G. Spalding & Bros, of Can.,
Ltd.; A. J. Reach Co. of Can.. Ltd.; Dominion
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and collections.
Cable Address: ".Morlcy," Toronto
VANCOUVER
W ,1. Bowser, K.C. R. L. Reid. K.C.
>, S.Wallhridge A. H . ni>uttl;is J, G. Gibson
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tors for Bank of Montreal (Bank of
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Yorkibirc Boildint, SZSSeymoDr St., Vancouver, B.C.
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Your Card here would ensure it being
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32
THE MONETARY TIMES
Volume 66
tracts or otherwise and hold land necessary for their busi-
ness and until tin licentic has been granted or after it has
ceased to be in force to prohibit them from doing any and
all of these things, are liltra vires of the provincial legisla-
ture.
"In my opinion, such legislation, if upheld, would directly
deprive the company of its status and powers conferred
upon it by its Dominion charter and is clearly contrary to
the principles laid down by the Judicial Committee in the
Wluirton case, supra, as those which should control and
prohibit provincial legislation with regard to Dominion com-
panies."
On the other hand, three judges of the Supreme Court
decided that the legislation was intra vires of the provincial
government. Justice Anglin in his judgment said: —
"The power to exact compliance with legislation of that
character implies the right to enforce it by ap-
pending appropriate sanctions. So long as the Dominiion
company, by paying the tax imposed or by making the entry
required, has the absolute right to obtain the provincial
license its status as a company is unimpaired and the exercise
of its potvers and functions is not uiuhdy fettered.
"Approaching the Manitoba statute with a view of up-
holding it, if by fair consideration of them the impeached
provisions can be bi'ought within the provincial legislative
powers — ^I think they may be regarded as an exercise of
the powers of direct taxation and in regard to the administra-
tion of justice and the control of civil rights conferred on
the provincial legislatures by s. 92 of the B.N. A. Act and as
not involving such an interference with status, capacity or
powers of Dominion companies as would bring them within
the condemnation of the Judicial Committee in the Wharton
case."
This majority decision of the Supreme Court of Canada
has now been reversed by the Privy Council.
NEWS OF INDUSTRIAL DEVELOPMENT
Government May Open the Way for Expansion of Pulp and
Paper Trade in the West— British-American Nickel Smelter
at Sudbury is Closed — Drop in Price of Woollens
\ NNOUNCEMENT of the passing of the order-in-council
■^*- by the Dominion government regarding the sale of pulp-
wood limits in the province of Manitoba, which was given
in detail in these columns last week, has created a good deal
of interest, in that it revives a jwint which has been the
subject of considerable controversy in the past two or three
years, namely, the possibilities of the west as a producer of
pulp and paper. The western press has been frequently
heard from in the past regarding the matter, and the Can-
adian capitalist is still being urged to hasten the development
of paper mills there, and to take advantage of the great
home market that there is for paper products. Up to the
present time all such efforts have not met with very much
encouragement and nothing constructive has been accomp-
lished, but it is the belief this latest action on the part of
the government will open the way to a broad expansion of
the industry.
A western editor some time ago in sizing up the situation
gave the following brief but comprehensive opinion: "West-
ern Canada has the wood and the water powers, it also has
the rivers and the streams for driving the logs, and means
of transportation by rail is getting more efficient and easy
of access year by year. Pulp and paper can be produced as
economically in the west as in any other part of the Do-
minion. It is an industry which will stand the fullest in-
vestigation. The market's demand is incessant and growing
yearly by leaps. In western Canada there are over 550 daily
and weekly newspapers and magazines published with a
daily, weekly and monthly circulation of over 1,000,000
copies. The construction of new lines continues at the rate
of 1,000 miles or more per annum (branch and main lines), and
new towns are opening up in large numbers each year. The
larger proportion of these towns grow into a newspaper
stage at a very early date. The demand for paper of all
kinds within the next ten years will be enormous, and should
be the means of supporting a large number of paper mills,
as well as building up thriving communities."
Work on the $2,000,000 pulp and paper mill at Kenora,
Ont., will start within about the next month, according to E.
W. Backus, president of the Backus Milling Co., Fort
Francis. The ground-wood mill will be in operation before
the end of this year, according to Mr. Backus, and will have
a capacity of fifty tons, which will be increased to 200 tons
per day, as soon as conditions permit. It is expected that
between 2,500 and 3,000 men will be working in connection
with the mill in a year's time.
It is announced that the Wayagamack Pulp and Paper
Co., which closed down their mills a month ago for repairs,
will resume operations in a few weeks, at the end of March
at the latest. It is understood that the output of the com-
pany will be doubled as soon as the mills work full time.
Large additions are being made to the present mills.
The Brown Pulp and Paper Co. has bought the Dansereau
Island, in the mouth of the St. Lawrence River, where pre-
parations will be made to receive and saw the wood floated
down the river. The building of the mills of this company
at Ste. Angele, across the St. Lawrence, will begin this
spring.
Reports from East Angus, Que., indicate a further clos-
ing of a part of the Brompton Pulp and Paper plant. The
newsprint mill, it is understood, will continue full time, as
the demand for newsprint is still strong. Other departments,
representing approximately half the employees, will experi-
ence a quiet period. The closing of a part of the plant is
said to be for the purpose of making repairs, and should be
of short duration. The company has made a good cut of
logs and pulpwood, and there is every reason to believe that
the big plant will have little idle time.
Drop in Woollens Price
Woollen serges and other goods sold by the yard, ex-
cept fine worsteds, are now being offered by Aianufacturers
at about half of the quotation made this time last year, ac-
cording to T. Goltman, of B. Gardner and Co., clothing, manu-
facturers, Montreal, Que. Mr. Goltman said that prices of
woollen goods made in Canada, prices of English lines, and
of those from the United States, had all tumbled fromi the
peak, which they reached twelve months ago, but that even
yet they were still just slightly below the 1919 levels, and
still at least double of what would have been considered a
fair price in 1914. He stated also that prices of linen can-
vasses and linings had also been cut in half in Great Britain
within the last three weeks, and while these drops in the
market would lessen the cost of manufacturing clothing, he
did not think next fall's suits and overcoats would be any
less costly than those offered in the stores now, most of
which were going for less than the prices of manufacture.
The smelter of the British-American Nickel Co. at Sud-
bury, Ont., has been closed. General Manager Carlyle ex-
plains the situation as follows: — "Owing to the extremely
bad condition of the market for all metals the corporation
finds it necessary to discontinue operations and close down
until such time as the markets have become more normal.
The directors sincerely regret that this circumstance, over
which they have no control, compels them to stop the em-
ployment of so many employees, especially at this period of
the year, but unfortunately no other course is possible."
Pulverized Coal
The Inter-Provincial Coal Co., Ltd., Winnipeg, after
three years spent in the investigation of every method in
vogue in Europe and America has reached the conclusion
that by far the most perfect system of burning coal, is by
burning it in pulverized form for both industrial and domestic
use. A public demonstration will be made in Winnipeg
shortly. It is expected that arrangements can be made to
March 4, 1921
THE MONTETARY TIMES
33
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Palatine Insurance Company
LIMITED
OF LONDON, ENGLAND
Capital Fully Paid - $1,000,000
Fire Premiums, 1919 3,957,650
Total Funds - . 6,826,795
Head Office : — Canadian Branch
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Total Investments Exceed $40,000,000
Head Office for Canada, Guardian Building, Montreal
H. M. LAMBERT, Manager. B. B.fH ARDS. A9sistant Manager.
ARMSTRONG & DeWITT, Limited, General Agents
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ISSUES
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THE MONETARY TIMES
Volume 66.
demonstrate with, powdered peat as well as with powdered
coal.
Two plants in Owen Sound, Ont., namely, North
American Furniture Co. and Owen Sound Bent Chair Co.,
have resumed operations and expect to get back to capacity
production within a few weeks. The resumption of manu-
facturing: has made a big difference in the employment situa-
tion of that municipality.
The plant o' the Dyrob Steel Co., at Orillia, Ont, is
now operating. The company was formed in October of last
year, and temporary quarters were secured in the National
Hardware factory, on the outskirts of Orillia. Its products
include chisels, pliers, pincers, wrenches, springs, gears, cut-
lery for domestic use. A flexible skate is also manufactured.
During the spring months it is proposed to build a new plant
at the cost of $50,000.
In view o? the lai'ge orders on hand, totalling $14,000,-
000, the National Steel Car Co., Hamilton, Ont, faces a
pleasant outlook. The cost of raw material and labor now
shows a considerable decrease, which adds favorably to the
future of the company. In 1915 the company contracted
■with Paris, Lyons and Mediterranean Railway Co. for a
large order of cars. Unforseen war conditions arising during
the performance of this contract resulted in a loss to the
company surpassing more than its capital stock, and left a
deficit of $1,603,184. The trouble with the French govern-
,ment is now drawing to a satisfactory conclusion.
A cut of five cents per hour, in employees' wages, which
is a little less than ten per cent, has been announced by the
Halifax Shipyards, Ltd. The reduction was necessary to
lower costs suflSciently to enable the company to compete
for business. The company is employing about 1,300 men at
work on ship construction, and repairs and everything is
going along smoothly at the plant.
NEW INCORPORATIONS
Total Capital for Week ended March 1 is $17,851,000,
Compared With $16,482,500 Previous Week
AUTHORIZED capital of $17,851,000 is represented by' com-
panies whose incorporation was reported to The Mone-
tary Times during the week ended March 1, compared
with $16,482,500 the previous week. A comparative sum-
mary by provinces is as follows: —
Week ended Week ended
Feb. 22. Mar. 1.
Dominion % 3,892,500 $ 3,848,000
Alberta 1,766,000
British Columbia 775,000 184,000
M&nitoba 266,000 245,000
New Brunswick 310,000
Ontario 9,099,000 10,205,000
Prince Edward Island 340,000
Quebec 1,8.39,000 1,263,000
Saskatchewan 301,000
Total $16,482,500 $17,851,000
The following is a list of companies incorporated under
Dominion charter with head ofl[ice and authorized capital: —
Electric Phonograph Co. of Canada, Ltd., Toronto, $250,-
000; Ca.rnol, Ltd., Montreal, $200,000; Farmer-Milford, Ltd.,
Montreal, $40,000; L. P. Securities, Ltd., Montreal, $500,000;
Rideau Investment Co., Ltd., Montreal, $700,000; Walton's
Lunch (Canada), Ltd., Montreal, $350,000; Du Plessis Optical,
Ltd., Montreal, $49,000; Goupi'l, Ltd., Sherbrooke. $250,000;
Canadian Toledo Scale Co., Ltd., Windsor, $350,000; Scottish
Colonial Investment Co., Ltd., St. John, $900,000; Gregory's,
Ltd., Montreal, $49,000; Canadi&n Clothel Refrigerating Co.!
Ltd., Montreal, $10,000; Alton Equipment Co., Ltd , Ottawa,
$50,000; Canadian Tent and Awning Co., Ltd., Peterborough,
$50,000; Automotive Sales and Service, Ltd., Ottawa, $50;-
000; United Candy Shops of Canada, Ltd., Montreal, $50,000.
Provincial Charters
The following are the provincial incorpoiations: —
Alberta.— R. J. Rollis and Co., Ltd., Three Hills, $10,000;
Franklin Coal Co., Ltd., Calgary, $50,000; Quigley Agencies,
Ltd., Calgary, $100,000; H. L. Williams and Co., Ltd., Edmon-
ton, $20,000; Wayne Drug Co., Ltd., Wayne, $10,000; Big
Valley, Sports, Ltd., Big Valley, $20,000; Baird and Steven-
son, Ltd., CeJgary, $20,000; Spruce Grove Drug Co., Ltd.,
Spruce Grove, $10,000; F. L. Popham and Co., Ltd., Edmon-
ton, $20,000; Block Four Spur Track Co., Ltd., Edmonton,
$1,000; Fort Norman Oil and Development Co., Ltd., Edmon-
ton, $1,250,000; Bryan Coal Co., Ltd., Edmonton, $50,000;
Bassano Cui-ling and Skating Rinks, Ltd., Bassano, $20,000;
Arctic Boat Co., Ltd., Edmonton, $20,000; Wetaskiwin Hog
and Livestock Co., Ltd., Wetaskiwin, $5,000; The Office, Ltd.,
Calgary, $10,000; Mine Power Co., Ltd., Drumheller, §100,000;
Cott&ge Construction Co., Ltd., Edmonton, $50,000.
British Columbia. — Thurlow Logging Co., Ltd., Van-
couver, $10,000; Island Logging Co., Ltd., Victoria, $24,000;
J. McTaggart and Son, Ltd., Vancouver, $25,000; Western
Abrasive Paper Co., Ltd., Victoria, $10,000; Simple Appli-
ance Co., Ltd., Vancouver, $50,000; Nanaimo Export Co., Ltd.,
Nanaimo, $10,000; Novelties and Notions, Ltd., Vancouver,
$25,000; PMsley Lingerie Co., Ltd., Vancouver, $10,000;
Fidelity Securities Corp., Ltd., Vancouver, .$,10,000; Stone and
Weetman, Ltd., Vancouver, $10,000. '
Manitoba. — Equitable Securities Co., Ltd., Winnipeg,
$100,000; Home Fuel and Supply Co., Ltd., Winnipeg, $50,000;
Canadian Rogers Sheet Metal and Roofing, Ltd., Winnipeg,
$20,000; Elias Reich and Co., Ltd., Winnipeg, $40,000; Pure
Food Products, Ltd., Winnipeg, $5,000; Stephenson-Russell,
Ltd., Winnipeg, $30,000.
Ontario Orillia Lawn Bowling Assoc, Ltd., Orillia,
$40,000; R. C. M&tthews and Co., Ltd., Toxonto, $500,000;
West End Laundry and French Cleaners, Ltd., Toronto,
$100,000; Conklin Ginseng Nursery Plantations, Ltd., Tor-
onto, .$40,000; Cotton Products, Ltd., Toronto, $40,000; C. H.
Burgess and Co., Ltd., Toronto, $500,000; Atwood Coal, Wood
and Cartage Co., Ltd., Atwood, $5,000; W. A. Mackenzie and
Co., Ltd., Toronto, $500,000; Dominion Engineering Agency,
Ltd., Toronto, $40,000; Splitdorf Electrical Co., Ltd., Toronto,
$15,000; Killakes, Ltd., Fort William, $60,000; Chamberlain
Coal and Oil Development Co., Ltd., Shelburne, $2,000,000;
Oxford Clothing Co., Ltd., Toronto, $150,000; Allied Porcu-
pine Gold Mines, Ltd., Toronto, $5,000,000; F. L. Wilke Co.,
Ltd., Toronto, $100,000; Roy&l-Flush Oil and Gas Co., Ltd.,
Toronto, $500,000; Master Spark Plug Co., Ltd., Toronto,
$125,000; Soo Garage, Ltd., Sault Ste. Marie, $40,000; Bright
Light Electric, Ltd., Toronto, $40,000; Orford Farmers Co-
operative Co., Ltd., Muirkirk, $40,000; Lace Goods Co., Ltd.,
Toronto, $250,000; Wiesberg's, Ltd., Toronto, $40,000; Rich-
ardsons, Ltd., Toronto, $80,000.
Prince Edward Island. — Greenwood Foxes, Ltd., Char-
lottetown, $200,000; Springton Lumber Co., Ltd., Charlotte-
town, $40,000; J. Stanley Wedlock, Ltd., Charlottetown,
$100,000.
Quebec. — Ronalds Press and Advertising Agency, Ltd.,
Montreal, $500,000; P. L. Baldwin and Sons, Ltd., Coaticook,
$99,000; Montreal Electrotype Co., Ltd., La Maison Albert,
Lt., Montreal, $20,000; Northwestern Oil Co., Ltd., Montreal,
$250,000; Adler, Ltd., Sorel, $20,000; Quebec Cereal and Grain
Co., Ltd., Quebec, $5,000; City Sponging Works, Ltd., Mont-
real, $20,000; Med Paquette, Ltd., Montreal, $149,000; Arrow
Clothing Co., Ltd., Montre&l, $20,000; International .Athletic
and Social Club, Montreal, $5,000; D. 'E. S., Ltd., Quebec,
$75,000; Claridge Hotel Corp., Montreal, $60,000; Armstrong
and Cook Co., Ltd., Montreal, $40,000.
Alberta's coal production for 1920 will be 30 per cent,
in excess of last year's, it is estimated by the government
mines branch. A total output of well over 6,500,000 tons is
estimated, as compared with 5,022,412 tons in 1919. For the
nine months of the year, to the end of September, a total
of 4,750,964 tons has been mined, the output for September
alone being 618,093 tons.
March 4, 1^21
T li E :M 0 N E T A R Y TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"SoUd as the Continent"
Throughout its entire history the North American Life
has lived up to its motto "Solid as the Continent." Insurance
in Force, Assets and Net Surplus all show d steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
192] promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. H.'\RVEY, Supervisor of Agencies.
North American Life Assurance Company
■■SOLID AS THE CONTINENT"
HEAD OFFICE TORONTO
Important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE - WINNIPEG. MAN.
Assurances, New and Revived
Premiums on same
Assurances in Force
Total Premium lucoine ■
Policy Reserves
Admitted -Assets
Average Policy
$1,211,447.00
43,890.00
3,458,939.00
109,586.03
211,497.00
296,430.62
2,237.50
Collected in cash per 81,000 insurance in force 31.75
For particulars of a good agency apply to
ADAM REID, Managing Director Winnipeg.
Fifty-one Years of Steady Progress
One of the most brief yet impressive histories of Canadian financial in-
stitutions is contained in the annual record of 1 he Mutual Life of Canada.
The current issue will be ready m a few days. A copy will be sent toyou
on application. It contains rifty-one successive summai ies. showing in
the parallel columns the increase from year to year of the company's
various receipts, expenditures, etc. No other document could better
convey the idea of solid, uniform achievement, and the momentum of the
advance is now greater than ever. The prospects are briRht for a still
mtire rapid exransion within the next few years The assets of the com-
pany e.Kceed $40.000 000. and the assurances in force have re:iched
?20fi.000 000. There is a gross surplus of more than five million dollars
over and ab.ive the amount necessary to guarantee all policies, so that
the position of the company, in spite of the strain of recent years, is one
of uncommon strength.
The Mutual Life Assurance Co. of Canada
Waterloo Ontario
CO-OPERATIVE SERVICE
"J'O Policyholdirs hitwcen the Company :ind the ARents is Ihc secret of our
■*■ success. Every representative is given the utmost assistance, but he must
look after our clients' interests. During the last il years Tk« CoBtiiulal Lift has
built an enviable reputation for prompt payment of claims.
Write for boolilet, " Dor Bctl Adrertiun." l-or .Mananers positions in
Ontan... .ipply with rciiicnces. statinK experience, etc.. to S. S. WEAVER, EailirD
SaperiDlcDileDt, al Head Office.
THE CONTINENTAL LIFE INSURANCE CO.
Head Office
TORONTO. ONTARIO
ENDOWMENTS AT LIFE RATES
ISSUEU ONLY HY
THE LONDON LIFE INSURANCE CO.
Head Office ... LONDON, CANADA
Profit Results in this Compaoy 70°„ better than Estimates.
POLlClHS GOOD AS GOLD."
There Are Many Men
who would give ten times the regular price of Life
Insurance — if they could get it. But they cannot.
Do not run the risk of being unable to secure the safe
protection of Life Insurance. Obtain a Policy while
you can. Ill health may later make Insurance im-
possible. Delay only means added cost.
The Great-West Life issues Insurance on all plans —
upon most attractive terms. Ask for information.
THE GREAT-WEST LIFE ASSURANCE COMPANY
DEPT. ■ F"
HEAD OFFICE - WINNIPEG
The Western Empire
Life Assurance Company
Head Office: 701 Somerset Building, Winnipeg, Man.
Branch OppiCBS
SASKATOON CALGARY EDMONTON VANCOLVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office for Canada, tiamilton, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NOR.MA.N S. JONES, Manager R. J. MAHONV, Asst Manager
ASK FOR AN AGENCY FROM THE
"GRESHAM"
Liberal Policies Reduced Premiums
ESTABLISHED 1848
Funds Exceed Fifty Million Dollars
Gresham Life Assurance Society
LIMITED
Gresham Building MONTREAL
36
THE MONETARY TIMES
Volume 66
News of Municipal Finance
Red Deer Debenture Debt Has Been Substantially Reduced— Revenue Assets Show Good Surplus Over
Liabilities— Ottawa Hydro System Had Favorable Year- Vancouver is Faced With Deficit According
to Tentative Estimates— Calgary's Assessment Reduced, While Edmonton's Figure is Same as Last Year
New Toronto, Ont.— The tax rate for 1921 will be 37.9
mills. The total amount to be raised by taxes this year is
$100,282.
Glace Bay, N.S. — According to the auditors' report for
1920, revenue from all sources amounted to $258,293 and ex-
penditures $217,682, leaving a surplus for the year of $40,610.
Winnipeg. Man. — The estimated budget of the public
school board for 1921 is $2,884,63.5, being an increase over
the previous year of $608,853. A balance of $5,110 marks
the efforts of the financial committee for 1920.
Brantford, Ont. — The municipal railway in 1920 had a
surplus of $2,163, according to the annual report submitted
to the city council. The total receipts were $191,733, and
operating expenses $148,581, le&ving a gross operating profit
of $43,152, which, after meeting all capital calls, including
interest, sinking fund, a debenture paid off and deferred
maintaining charges, left the above balance.
Regina, Sask. — The city is indebted to the bank to the
extent of $553,500 for overdrafts on current &ccount during
the past four years, the aldermen have been notified by Com-
missioner Thornton. The matter was referred to the special
committee with power to act. The proposal made by the
commissioners is that the council provide for $226,500 of this
amount by an issue of treasury bills, and that last year's
deficit of $218,000 be provided for in the t&x levy this year.
This would still leave $109,000 to be provided for in some
othef way. The commissioners recommended immediate ac-
tion on the ground that the bank is pressing for a settlement.
Edmonton, Alta. — Approximately, the city's assessment
for 1921 will be $80,000,000. This amount is practically the
same as in the previous yeai-. Assessor Walker states that
he is unr.'ble to give the actual amount of the land and build-
ing assessment at this time. He estimates that the land
assessment would drop about $500,000 on last year's total of
$61,997,000. In the case of buildings, the increase would be
around $500,000 on the 1920 assessment of -$17,194,000, so
there would be no appreciable difference from last year in
the general c.ssessment of nearly $80,000,000. On account
of the ruling of the utilities commission, unsubdivided lands
in the outlying subdivisions are rated as agricultural areas
with valuations ranging from $50 to $150 an acre.
Vancouver, B.C. — The city is faced with a deficit of
slightly over $1,000,000, according to tentative estim&tes of
the chairman of the finance committee. The total expendi-
ture is anticipated to be somewhere around $7,370,000. All
present sources of taxation are now utilized practically to
the limit. The mill rate is almost as high as allowed by the
charter. There is the possibility of taxing improvements to
the full amount of the assessed value, instead of only .50 per
cent, as at present, but the burden alre&dy carried by the
property owners makes it very impi-obable that the city
council would entertain the idea of adding to their burden.
The city is again demanding that the province turn over the
revenue from the amusement tax and motor tax collected in
this city, but even with this included the total revenue would
be far short of what is needed.
Ottawa, Ont. — The report of the municipal Hydro-Elec-
tric Commission for 1920 shows that the revenue for that
year was $305,310. This is an increase over the previous
year of a little over $30,000. The operating expenses for
1920, including interest and sinking fund charges, are $250,-
101. This is an increase over the previous year of E'bout
$21,000. The gross surplus for 1920 is therefore $55,209, and
against this $42,800 has been charged for depreciation, leav-
ing a net surplus of $12,409.
A statement of assets and liabilities is also submitted by
the commission. This shows that the value of the plant is
$1,122,142. There &re also other assets, including sinking
fund $205,404, and victory loan bonds $50,000, which make
the value of the total assets $1,464,762. The liabilities of the
plant are debentures outstanding $700,000, and other liabili-
ties, making a total of $784,678. There is thus a balance of
assets over lia.bilities of $680,084. The amount which is given
as the value of the plant represents the amount of money
actually put into it, and not its value at present day prices,
which will undoubtedly be considerably in excess of this
value. The plant has been owned by the city for sixteen years.
Red Deer, Alta In the annual financial statement of
the municipality shows a reduction in the debenture debt
during 1920 from $313,561 to $297,567. There is also a capital
surplus of $170,000, compared with $165,000 in the previous
year. Revenue assets are given as being $67,686 in excess
of liabilities of a similar category. In 1919 the surplus in
this regard w&s $52,105. Arrears of taxes total $142,004,
compared with $124,917 previously. The increase, of course,
is due to arrears for 1920, the total of arrears for previous
years having been substantially reduced. The total of tax
arrears up to the end of 1919 as shown in the 1919 report
was $124,917. while the total up to the end of 1919 a« shown
in the 1920 report is only $99,733. After deducting water-
works and local improvements the net debenture debt is
$147,129.
A. T. Stephenson, commissioner, in explaining some of
the principal features of the 1920 report, remarks: "We have
not issued any debentures for some years past, and the
debenture debt h?,'S been reduced by $72,261 since 1914. We
have refused to issue debentures for any purpose whatever,
and are striving to get this debt reduced as much as possible.
For some years now we have made an extra levy to build
up a revenue surplus account to take care of uncollectable
taxes, most of which are school t&xes only on subdivided
lands outside the city limits. This account now stands at
$67,686.
"While the M'rears of taxes are large, a considerable part
of the arrears are covered by agreements whereby the current
taxes and a proportion of the arrears are paid annually.
Property owners who served in the great war were granted
extension of time for payment of arrea-rs in all cases where
they wished it. Land tax only, with a tax on rental value of
business premises, with no tax on improvements, has been in
force in Red Deer for many years, and it is rather remark-
able that, under this unsound, in my opinion, system of tax-
ation. Red Deer ha^s managed to maintain such a sound finan-
cial position up to the present time. The imposition of a
direct tax by the provincial government, on all lands in the
city, and the fact that this same government is taking many
revenues rightfully belonging to the city, and not giving
sufficient grants to hospitals and schools, added to the tremen-
dous increase in the school dem&nds on the city, make it
necessary to find other sources of revenue.
"The council is now asking for legislation granting the
city power to collect a service tax of not more than $10 per
year from all residents earning more tha.n $75 per month,
and a householders tax of not more than 10 per cent, of the
rental value of the premises, and is considering a'ssessing
impi-ovements for 1922. We have cash in the bank at present,
sufficient to pay all treasury bills and interest due in 1921,
and expect this year, as usual, to pay all debentures when
due and presented."
March 4, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
noussLRW)ODv°C)MmNy
INVUTMCNT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
INSURANCE
Promptly effected in all its Branches
FIRE, AUTOMOBILE, ACCIDENT, LIABILITY, Etc.
Intelligent Advisor)) Service
OSLER, HAMMOND & NANTON
WINNIPEG
PROVINCE OF ONTARIO
6% COUPON BONDS
Due February 1st, 1941
PRICE : 100 AND INTEREST
Harris, Forbes & Company
INCORPOHATXD
C. P. R. Building 21 St. John Street
TORONTO MONTREAL
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur Bldg., WINNIPEG, Canada
Member! of Winnipeg Real Estate Exchange, Winnipeg Stock Exchange
c.
H.
BURGESS & CO.
Governnnent and
Municipal Bonds
14
King Street East
Toronto
#juiuj|iiuiuiuiiiiuiuiiuiiuiiimiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiii>iuiiiiuuiiiiiiiiuiiiiiiiiiiiiiiiimiiuiiiiiiuiiiiiuiiuiii
ANNOUNCEMENT
T. S. G. Pepler & Co. beg to announce
to their clients and friends that Mr. L.
Soliague has retired from the firm.
The business will be carried on as usual
in Government, Municipal and Corpor-
ation Bonds, under the old name of
T. S. G. PEPLER & CO.
at
106 Bay Street - Toronto
I mill iiiiiiiii III! iiim II 1 1 iiiiiiiiimiiiiiiiiiiinniiuiiiiiiiiiiimiiiiiiiiiiiiiiiNiiiiiiiinwiiiiiiiiiniumiiinnnnimMiniiiiiinlinJiiniffliiiiiiiiiiiiiirmiis
Exceptional —
— both for safety of principal and surety of
return is this
7% Canadian Industrial Bond
with a bonus of Common Stock payable in New
York funds.
Ask us for full particulars
R. M. HEFFERNAN & CO., Limited
IM'ESTMEXT BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
THE MONETARY TIMES
Volume 66.
Government and Municipal Bond Market
New Edmonton Deal is Arranged— Trustees of Morris Brothers Take Thirty-Day Option— Victory
Loan Issues are Mostly Stronger— Short Term Bonds Have Yielded Slightly— Stratford Sold
Securities Locally on Six Per Cent. Basis— Prescott and Russell Loan on 6.18 Per Cent. Basis
SEVERAL municipal issues were disposed of during the
past week at prices consistent with recent tendencies in
the market. The united counties of Prescott and Russell
paid about 6.18 per cent, for their loan, which was considered
a good rate. Last August the counties pf.jd 6.70 per cent.
The provincial government guarantee helped Morris R.M.,
Man., to get a reasonably good price for its securities.
The general bond market remains firm to stronger, with
a good demand throughout. With demand for funds for
commercial purposes becoming less urgent, our banks are
£.gain assuming the role of the investor, and by so doing
are influencing the situation to a considerably extent. The
January bank statement shows an increase in government
and municipal security holdings of about $4, .500,000 over the
previous month.
Victory bonds continue active, with prices fractionally
stronger. The dema^nd is mostly for the long-term issues,
and, as a result, the short-term loans have suffered slightly.
The following figures illustrate the recent trend of prices: —
Control Last week. This week,
price. High. Low. High. Low.
1922 98 98% 98 98y8 98i/i
1927 97 98% 97 98 97
1937 98 99% 98% 99% 99%
1923 98 981/2 97% 98% 971/2
19.33 961/2 98% 98 98% 98i/4
1924 97 96% 96 96% 96
1934 93 951/2 9514 95% 95y4
Coming Offerings
The following is a list of debentures offered for sale,
particulars of which have been given in this or previous
issues: —
Tenders
Borrower. Amount. Rate %. Maturity. close.
New Toronto, Ont. . . $ 58,000 6 1/2 Mar. 5
St. Andrews R.M.,
Man 100,000 51/2 30-instal. Mar. 5
Danville, Que 33,000 6 Various Mar. 7
Trail, B.C 37,000 7 20-years Mar. 7
St. John, N.B 54,000 6 25-years Mar. 7
St. Thomas, Ont. ... 165,893 51/2 & 6 Various Mar. 8
Bumaby, B.C 131,700 6 Various M&r. 14
Sherbrooke, Que 513,000 6 10-years Mar. 14
Drumheller, Alta. . . . 28,000 7 20-instal. Mar. 26
Pipestone R:M.,. Man. 80,000 Mar. 31
Sherbrooke, Que — The city is offering for sale $513,000
6 per cent, debentures. The securities mature March 31, 1931.
Tenders close on March 14, 1921.
New Toronto, Ont. — Tenders will b;e received until March
5, 1921, for the purchase of .$58,000 eVa per cent, school de-
bentures. A. F. Ritchie, treasurer.
Pipestone R.M., Man. — Tenders will' be received until
March 31, 1921, for the purchase of .?80,000 good roads deben-
tures. G. F. Birney, secretary-treasurer, Reston, Man.
Burnaby, B.C. — Tenders will be received up till March
14, 1921, for the purchase of $131,700 6 per cent, debentures,
maturing December 31, 1935 and 1940. (See advertisement
elsewhere in this issue.)
St. John, N.B. — Tenders will be received by the Board of
School Trustees of St. John, N.B.. until March 7, 1921, for
the purchase of $54,000 6 per cent. 25-year debentures, in
denominations of $500 each and with interest payable half-
yearly. A. G. Leavitt, secretary.
St. Thomas, Ont. — Tenders will be received until March
8, 1921, for the purchase of the following debentures, totalling
$165,893.65: $3,387.42 5V2 per cent., due December 24, 1938-
39; $147,401.04 6 per cent, due February 1, 1937-51; $15,-
105.19 6 per cent., due February 1, 1938-41.
Wainwright, Alta.— The town is offering $10,000 6% per
cent, ten-year bonds, of $100 each, t'o local citizens. The
bonds are being offered at 96, giving a yield of 7.08 per cent,
to the investor in the town. The bonds are an obligation of
the town of Wainwright, and in addition are a first claim
against all uncollected taxes prior to 1919.
Debenture Notes
Diitton, Ont. — A by-law to spend $20,000 on a community
hall has been carried by ratepayers.
Silver Creek, Man. — Voting on a $25,500 hospital deben-
ture by-law, will take place on March 8, 1921.
• Shellmouth, Man. — Ratepayers will be asked to vote on
a $24,500 hospital debenture by-law on March 8, 1921.
ChilliwE'ck, $24,500 6 per cent. 10-year debentures for
road paving and $21,500 6 per cent. 10-year debentures for
the same purpose.
Boulton, Man. — A by-law authorizing the borrowing of
$10,700 to erect a municipal hospital will be submitted to the
ratepayers on March 8, 1921.
Russell, Man. — On Mai-ch 8, 1921, ratepayers will be
asked to approve a by-law authorizing the borrowing of
$13,800 for a municipal hospital.
Woodstock, Ont. — The city council has decided to submit
& by-law to ratepayers at an early date providing for the
raising of $65,000 for improvements and building of an addi-
tion to the Woodstock Hospital.
British Columbia. — The following certificates of authori-
zation have been granted by the municipal department: Kent,
for $20,000 6 per cent. 20-year debentures and $20,000 6 per
cent, debentures, payable January, 1941, under Hammersley
Prairie Dyking by-law.
London, Ont. — The legislature has approved of the fol-
lowing debenture issues: $257,500 for the London and Port
Stanley Railway improvements; $125,000 for electric light
extensions; $135,000 for waterworks extensions; $175,000 for
storm sewer construction; $50,000 each for the home for
incurables and the Children's Memorial Hospital.
Toronto, Ont. — By-laws have been passed by the city
council providing for the issue of debentures amounting to
$1,496,700 for the purpose of erecting and enlarging certain
public schools and purchasing said enlarging school sites and
$500,000 for the purpose of purchasing new sites and making
additions to collegiate institutes and high schools.
Saskatchewan. — The following is a list of authorizations
granted by the Local Government Bo&rd, from February 1
to 12, 1921:—
S per cent. School Debentures — Meadow River, $2,000,
10-years annuity; Peebles, $1,300, 10-years annuity; Gibson
Creek, $2,000, 10-years instalment; Briardale, $600, 10-years
instalment; Tilney, $800. 5-years annuity; Craik, $35,000, 20-
years annuity; Copeland, $1,700, 10-years annuity; Penzance,
$17,400, 20-years annuity; Bucclough, $800, 5-yeE'rs annuity;
Fairwell Creek, $3,500, 15-years annuity.
8 per cent. 15-years Annuity Rural Telephone Deben-
tures— Hillsborough, $800; Bow Valley, $2,500; Carruthers,
$34,000.
Village of Bladworth, $4,000 8 per cent. 15-years annuity,
for concrete sidewalks.
March 4, 1921
THE MONETARY TIMES
39
Yours to Command
It was an old fashioned courtesy
in correspondence to subscribe
oneself "Yours to command. "
We are not exactly old fashioned,
but we are willing and particu-
larly well equipped to serve
buyers and sellers of Victory
Bonds.
May we have the pleasure of
handling your orders?
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
■HWMWB4i4P^i,JM».l.m.l>^
'£\
J«m«4W»k%^^
IMVESTMEKT-StRVlCE
8% and
Safety
Sound security coupled with a yield
of over 8% is oflFered by the Bonds
of one of Canada's best-known in-
dustrial Corporations.
Assets securing Bond principal are
over nine times, and earnings secur-
ing Bond interest are at the rate of
over twenty limes, the required
amounts.
Write for particulars.
I
W. L. .\IcKIN.\O.N
DEA.N H. PETTES
We Buy and Sell
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Covernmcnl and Municipal Bonds
McKINNON BUILDING -:• TORONTO
Telephone Adelaide 3870
Government, Municipal
AND
Corporation Bonds
R. A. Daly & Co.
BANK OF TORONTO BUILDING
TORONTO
BONDS
Payable in New York
PRICES ON APPLICATION
DenDm-
"i Maturity Ination-
S4.0OO Province of British
Columbia *'A 1st Dec. 19'JS Sl.WiO
500 Province of British
Columbia 5 Sth Mar, 1939 500
4.000 City of St. Cathar-
ines. Ont SV 1st July. 1927 1.000
1,000 City of London.
Ont 6 1st .Mar , 1923 I.IXK)
\.m> Whalen Pulp &
I'aper .Mills. Ltd. t 1st May. 1932 1.000
I St Mortgage .^00
5.000 .Marcus Loew's The-
atres. Ltd fi 1st June. 1932 1.000
1st .Mortgage ....
500 .Marcus Loew's The-
atres. Ltd S 1st June. 1929 50()
1st .Mortgage...
{OrJers may be telephoned or telegraphed at our expense)
Write for ccmplele list
W. A. MACKENZIE & CO.
Covcrnmenf and Municipal Bonds
Corporation Securitlei
42 KING STREET WEST
TORONTO - CANADA
40
THE MONETARY TIMES
Volume 66.
Bond 8ak'8
Strall'ord, Ont. — The city has sold the following 6 par
cent, straight-term bonds locally at par: |20,000, 30-years;
$22,000, lO-years; $8,000, 15-years.
Paris, Ont. — C. H. Burgess and Co. have purchased an
issue of $40,000 6 per cent. 20-year debentures of the G. W.
McFarland Co., which are guaranteed by the municipality, at
a price of 92..'j83, which is on about a 6.67 per cent, basis.
Vegreville, Alta. — W. Ross Alger and Co. have purchased
and are offering $5,000 7 per cent, debentures of the town,
dated August, 1920, and maturing August, 1940, at a price
of 92.44, yielding 7% per cent.
North Vancouver, B.C. — In our issue of February 11
last we stated, in eiTor, that $41,000 6 per cent, debentures
had been disposed of to the Royal Financial Corporation.
The issue was purchased by the Canadian Financiers Trust
Company, Vancouver, B.C.
Mossbank, Sask.-^One tender at par was received for the
$2,000 8 per cent. 10-instalment fire protection debentures of
the village. The matter has been delayed on the suggestion
of the officials of the Canadian National Railways, to await
the decision of the railway as to making Mossbank. a divi-
sional point. This will affect the value of the securities.
Fointe Claire, Que. — An issue of $130,000 6 per cent, serial
bonds maturing in 1945, has been purchased by Nesbitt,
Thompson and Co., at a price of 97.529, which is on about a
6.30 per cent, basis. The other bids were as follows: Ver-
sailles, Vidricaire and Boulais, 97.32; A. E. Ames and Co.,
96.13; Hanson Brothers, 96.01; Dominion Securities Corp.,
Ltd., 95.86; Credit Canadien Inc. 95.77; Provincial Securities
Co., 96.76; Foster, Barrett, Riepert and Low, Ltd., 95.61; Rene
T. Leclerc, 95.125.
Morris R.M., Man. — As a result of the guarantee of the
provincial government, the municipality was able to dispose
of its $50,000 6 per cent. 20-instalment debentures to Strang
and Snowden at a shade under 6.50 per cent, basis, the price
being 96.11. Other tenders received were: C. Cross and Co.,
THF
I CANADA (
TRUST
'COMPANY)
Government ^nd
Municipal Bond
Investments
Bond Department
The Onada Trust Co^^w.vny
Chartered 1894
Managed in connection Tvilh
Chartered 1864
14 King St. East - TORONTO
Head Office: LONDON
WINDSOR CHATHAM ST. THOMAS
WINNIPEG REGJNA EDMONTON
of Regina, 95.91; Harris, Read and Co., Regina, 95.83; J. A.
Thompson, Winnipeg, 95.58; Bond and Debenture Corpora-
tion, Winnipeg, 95.53; Wood, Gundy and Co., 95.42; Bell,
Gouinlock and Co., Toronto, 95.28; Canadian General Securi-
ties Corp., Winnipeg, 95.03; R. C- Matthews and Co., Tor-
onto, 94.18.
Prescott and Russell Counties, Ont. — R. C. Matthews
and Co. have been awarded an issue of $100,000 6 per cent.
20-instalment debentures at a price of 98.55, which is on
about a 6.18 per cent, basis. The following tenders were
received : —
R. C. Matthews and Co 98.55
A. E. Ames and Co 97.93
Dyment, Anderson and Co 97.687
Wood, Gundy and Co 97.66
Harris, Forbes and Co., Inc 97.579
McLeod, Young and Weir and. Co 97.09
Dominion Securities Corp 96.81
W. A. Mackenzie and Co 96.21
Glace Bay, N.S. — Last fall the municipality offered for
sale .$175,000 6 per cent. 30-year school debentures and $15,-
000 6 per cent. 15-instalment paving debentures. These se-
curities were not sold, but W. F. Mahpn and Co. took an op-
tion on the school issue. At a meeting of the finance com-
mittee last week, W. F. Mahon stated that his company had
only been able to dispose of $85,000 up to the present and
that the company would take that amount immediately, with
an option on the remainder for 15 days. The finance com-
mittee agreed to this and the $85,000 was sold at a price of
83, which is on about a 7.43 per cent, basis.
Saskatchewan. — The following is a list of sales reported
by the Local Government Board, from February 1 to Febru-
ary 12, 1921:—
Schools.— Shellbrook, $1,200 8 per cent.; Mr. McDonald,
Prince Albert. Zealandia, $1,500 15-years 8 per cent.; H. L.
MoiTison, Zealandia. Wauka, $1,200 10-years 8 per cent.,
Slawa, $1,200 15-years 8 per cent.. Church Hill, $1,800 10-
years 8 per cent.; Waterman-Waterbury, Regina. Weyburn,
$5,000 30-years 6% per cent.; Weyburn Sinking Fund, Wey-
buni. Paynton, $31,000 20-years 8 per cent; Harris, Read
and Co., Regina. Bitter Lake, $4,200 10-years 8 per cent.;
H. J. Birkett, Toronto, Ont.
Rural Telephones, 8 per cent. — Verdun, $1,000 15-years;
Pert and Pert, Regina. Langbank, $850 15-years, Moosbank,
$1,000 15-years, Meyronne Southern, $1,000 15-years; C. C.
Cross and Co., Regina. Southmin.ster, $1,000 15-years, Sun-
derland, $2,100 15-years, North Redvers, $1,900 15-years,
Noremac, $1,500 15-years; W. L. McKinnon and Co., Regina.
Middleton, $2,950 15-years; R. McLeod, Regina. Surbiton,
$200 10-years; local purchaser, Surbiton. South Church-
bridge, $2,500 15-years; Regina Public School Sinking Fund.
Towns.— Melfort, $1,~500 20-years 61/2 per cent., Melfort,
$6,900 10-years GV2 per cent.; local purchaser.
Edmonton Bond Deal Arranged
A new bond deal, involving the release of the major
portion of the Edmonton, Alta., securities held under court
orders in Portland for nearly two months, was accepted by the
city council last week. Without further delay, all but $150,-
000 of $1,600,000 now in the Oregon city are to be trans-
ferred to the Imperial Bank of Canada at Vancouver, British
Columbia. Under the new arrangement the bonds are to be
removed to Vancouver, with the exception of $150,000 worth
to be left in Portland. The trustees will have an option of
thirty days on the sale of the whole issue, the plan being to
replace the bonds in Portland with drawings from Vancouver
as those left on the American side are taken up. At the ex-
piration of thirty days the option expires and all unsold
bonds are to be returned to Edmonton.
Mayor Duggan explained to council that the trustees
wished to have a portion of the bonds on hand so that when
sales were made there would be immediate delivery instead
of having to wait some time to get them from Vancouver.
It was felt that the sales would be helped if there was no
delay whatever in delivery.
March 4, 1921
THE MONETARY TIMES
$25,000
CITY OF HALIFAX, N.S.
5- % BONDS
Due ]ul^ ht. 1953
Denominalions, $1,000
Principal and semi-annual interest pay-
able at Toronto, Montreal, Halifax.
Price ;
92.85 and accrued interest
YIELDING 6%
Eastern Securities Company, Limited
ST. JOHN, N.B. HALIFAX, N.S.
Western Municipal & School
Debentures
TU YIELD
6%
7h%
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
INVITED
UNION TRUST BUILDING
WINNIPEG
Our Service to Investors
IDLE MONEY
TN these prosperous days the earning power of
-•- money is great. Industrial and Municipal
expansion is calling for huge appropriations,
offering investors high returns on fully secured
capital.
Those whose savings are lying by, stagnating at
merely nominal interest, have now an oppor-
tunity to place their funds — "Idle Money'' — to
great advantage, assured of considerable profits
practically without risk.
V^ e have listed a number of these sound invest-
ments in which we strongly advise the placing
of "Idle Money." A letter marked "Service
to Investors " will put you in possession of facts
concerning these certain sources of income.
Address : —
M. S. WHEELWRIGHT & CO.
Canadian Investment Securities Lmiittd
TRANSPORTATION BLDG.,
I32St. PeterSt. MONTREAL 6.1 Sparks St.
01 FKEC
OTTAWA
FIro Insurance Company, Limited, of PARIS. FRANCE
Capital fully subscribed. 50% paid up t 2,000.000.00
Pire and Ccner.il Reserve Funds 8.270.00C.0O
Available Balance from Profit and Loss Account 55.891 .00
Net premiums in 1919 8,648,669.00
Total Losses paid toSlst December. 1919 114.500.006.00
Canadian Branch. 17 St. John Street. Montreal: Manager for Canada
Maurkb Perrand. Toronto Offices. J. H. Ewmjt. Chief Agent. 18 Welling
ton St East: K. H. Rice & Sons. Toronto Agents, IW Victoria St.
ACCOUNT BOOKS
Loose i^eaf Ledgers
binders, sheets and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cable Address. Topeco We.stern Un and A.B C. 5th Edition
CALGARY, CANADA
P. M. LIDDELL & COMPANY
Investment Danl(ers. Fiscal Agents
Insurance Brokers
826-7-8 ROGERS BUILDING, VANCOUVER, B.C.
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C. H. MACAULAY J 1>. MCOLLS. -Notary Hublic.
X
Vancouver District Property
Expert Estate Agents and Managers
Property Bought and Sold. Valued. Rented and
Reported on. Correspondence invited.
WAGHORN GWYNN Co., Ltd. v.nco»...
THE MONETARY TIMES
Volume 60.
C0RI»0RAT10N SECURITIES MARKET
Bearish Tone Again in Evidence on Stock Exchanges —
Great West Bank Shares Offered — Abitibi Sells Bonds
in United States — Brompton and Howard Smith
to Issue Securities
A BEARISH tone was again in evidence on the Canadian
stock exchanges during the past week, the chief influ-
ence being from the pulp and paper section. At times thei-e
were signs of release of the pressure, but price enhancements
were of moderate proportions. There has been no change in
fundamental business conditions to cause any modification
in the sentiment, and the speculative public is still inclined
to take a short-distance view of the general situation.
Trading figures indicate that liquidation of stocks was
not quite so severe as last week. In Montreal the turnover
of listed stocks was 73,4.56 shares, as against 97,834 previ-
ously, while in Toronto the turnover was 15,761, compared
with 29,956. Bond trading in Montreal amounted to $1,737,-
050, compared with $1,964,350 a week ago, while in Toronto
there was an increase from $1,964,350 to $2,840,350.
The Canadian Pacific Railway Company is petitioning for
an act giving it authority to issue bonds, debentures or other
securities as collateral to or in lieu of any consolidated de-
benture stock which it has now the authority to issue or will
have the authority to issue later. The proposal is that this
should be secured by pledge of the consolidated debenture
stock or secured upon the company's income for payment
of interest on the outstanding consolidated debenture stocks
issued.
Great West Bank Shares
The shares of the Great West Bank of Canada, which
was incorporated in July, 1920, are now being offered for
sale in the west. The authorized capital is $5,000,000, divided
into shares of $100 each, of which $2,000,000 is offered now
at $125. The preliminary announcement makes "a special
offer to subscribers, good until March 15 next, of a five dollar
brokerage on each share subscribed." This brokerage is evi-
dently to be repaid when the bank commences business. The
cost of promotion is estimated at $7.50 per share, leaving
$12.50 as reserve on each share issued. The payments are
to be made as follows: 35 per cent, on application, 15 per
cent, on May 1, 25 per cent, on September 1, 25 per cent,
on November 1, and 25 per cent, on December 1. The shares
are being sold by the General Bond Corporation, Ltd., Mc-
Callum-Hill Building, Regina.
New Pulp and Paper Financing
Notwithstanding the large amount of new financing ac-
complished by Canadian pulp and paper companies in 1920,
the requirements of the industry in this regard have not yet
been satisfied. Already three bond issues have been made this
year and several more are in prospect. This week the board
of directors of the Abitibi Power and Paper Company met in
Montreal and approved of the sale to Peabody, Houghteling
and Company, of Chicago and New York, of $4,000,000 par
value of 8 per cent, ten-year consolidated mortgage sinking
fund bonds. These bonds are being issued for the purpose
of reimbursing the treasury of the company for construction
expenditures made on its new plant. The bonds are a part
of a total authorized issue of $14,000,000, the balance being
reserved for the refunding of prior lien bonds and for addi-
tions to its working capital, under strict provision of issue.
Work on the company's new plants is being pushed with all
diligence, and it is expected that they will be i-eady for opera-
tion on May 1 next. Although officials of the Abitibi Com-
pany have declined to discuss the possibility of the new bonds,
or a portion of them, being offered in Canada, it is generally
understood that the issue will be confined entirely to the
United States.
At the special meeting of the shareholders of the Howard
Smith Pulp and Paper Mills, Limited, in Montreal, this week,
the plan for the company's new financing was unanimously
ratified. Of the new securities authorized of $7,000,000,
$1,000,000 will immediately be sold, while $2,500,000 will be
held in escrow. The balance of $3,500,000 will be retained
in the treasury. The issue is of 7 per cent. 25-year refunding
sinking fund gold bonds.
A meeting of shareholders of the Brompton Pulp and
Paper Company will be called immediately, to approve of the
proposal of the directors to issue $3,000,000 par value bonds
of the company. The total funded debt of the enterprise at
the present, including its two United States subsidiaries, is
$3,843,000.
Other Capital Changes
Shares of the Twin City Arena Company, Ltd., which
has just been incorporated with an Ontario charter and
capital of $250,000, are being offered locally in Kitchener,
Ont. The par value is $50.
Application has been made by the Bathurst Electric
Light and Water Power Company, Bathurst, N.B., to the
provincial Public Utilities Commission to increase its capital
from $145,000 to $2,000,000, and to issue bonds to the amount
of $1,500,000. The power company desires to take over all
the power rights from the Bathurst Lumber Company, thus
necessitating the above capital changes.
The Liberty Tire and Rubber Company of Canada, Ltd.,
Montreal, is offering shares. The company is incorporated
under the laws of the Dominion, with an authorized capital
of $500,000, of which $250,000 is 8 per cent, prefeii-ed cumu-
lative participating, and $250,000 common stock. The pre-
ferred is being offered at $10 per share, and a bonus of 25
per cent, common is being offered. Jos. O. GouiTe, of Jos. O.
Gourre and Co., Montreal, is president of the company, while
the board also includes two directors of the Liberty Tire and
Rubber Co., of Philadelphia.
Preferred shares in London Motors, Ltd., of London, Ont..
are now being offered direct to the public at par. The com-
pany received an Ontario charter early in February, and is
capitalized at $1,000,000, half preferred and half common,
par value in each case being $10. It is planned to manufac-
ture a car to be known as the "London Six," and to deal in
cars generally. W. R. Stansell, formerly an automobile dealer,
of Amherstburg, Ont., is president, and receives $40,000 of
preferred stock and $460,000 of common in return for a site
and building on King Street, London, valued at $120,000, a
factory site and certain plans.
UNLISTED SECURITIES
Quotations fu
Aita. Pac. Grain. ...com.
** '* " ....pref.
.American Sales Book.B's
Bclding, Paul pfd.
Br.indr'm-H'ndes'n.pref.
British Amer. Assurance
Burns, P. 1st MtRe. 6's..
Can. Cr'cU'r Wheeler pfd.
Can. Machmery pref.
6's.
Canada Mortgage
Can. Oil com.
Can. Salt 6's.
Can. Westingjiouse
Can. Woollens pref.
Cockshutt Plow .7% pref.
CoUingwoodShipb'dg.B's
Crown Life Insurance.. ■
Bid
Ask
13S
76
85.50
90
69
74
89
95
8
12
91
99
75
45
56
81
65
72
68
97
104
115
76.50
58
66
89
70
'96'
Cuban Can. Sugar. . .pfd.
Davies. William 6's
Dom. Foun. & Steel.com.
Dom. Iron&Steel5sl939
Dom. Power pfd.
DunlopTire pref.
6's.
Eastern Theatres., com.
G'elph&Ont.In.(par$,'>0)
Gunns. Limited pref.
HarrisAbattoir 6's
Home Bank
Imperial Oil.. -
Internatinnal Milling. 6's
King Edward Hotel.com.
" ..7's,
Lake Superior Paper. 6's.
Loew's. Buffalo.... com.
Bid
Ask
29
36
91
99
45
50
68
73
86
91
88
94
90
97.50
12
16
90
80
89
95
99.50
103.50
108
115
90
77
74
80
93
96.50
3.75
6
Loe\v*s Ottawa com.
Manufacturers Life
Massey- Harris
Mattagama Pulp... com.
" " . . .pref.
Mercantile Trust
Merchants Fire..
Mexican Nor. Power. .5's
Morrow Screw 6's
Murray-Kay pfd.
National Life
Neilson.Wm G's-
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Riordon . -com. (new stk.)
..pfd.
R. Simpson pfd.
Southern Can. Pow. . ptd.
Bid
Ask
10
170
200
98.50
20
30
65
74
90
100
,S6
10
13
84
88
62
72.. W
150
86
75
82
93
96.50
20
24
73
78
75
75
81
St. Lawrence Sugar. 6's.
Sterling /Bank
Sterling Coal com.
Toronto Carpet com.
Toronto Paper 6's.
Toronto Power. 5's (1924)
Trust* Guar..
United Ci^arStorescom.
.pref.
Western Assurance
Western Grocers.-, pfd.
Whalen Pulp com.
■' 7% pfd
March 4, 1921
THE MONETARY TIMES
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Years
fo yield
7 10?%%
We Specially Recommend these Bonds as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto Bldg. Royal Bank Channbera
EDMONTON CALGARY
Vancouver, B.C.
Victoria, B.C.
The Bond House of British Columbia
WE ARE :N THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches— SASKATOON AND CALOARV.
Canadian Managers
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank Bldg., Edmonton, Alta.
King Edward Hotel of Toronto
Reports Best Year in History
Net Earnings Amounted to $138,897, Equivalent
to 14 Per Cent, on Common Stock. New
Building Will be in Operation This Year.
The fourth Annual Meeting of the Shareholders of the
King Edward Hotel Company, Limited, was held at Toronto
on Tuesday, March 1st. The chair was occupied by the Pre-
sident, Mr. Frank A. Dudley, and the report submitted by
him to the Shareholders was eminently satisfactory.
Some of the outstanding features of the report submitted
by President F. A. Dudley are: —
1. Gross earnings equivalent to 28% on the out-
standing common stock.
2. \et earnings equivalent to 14% on the com-
mon stock after payment.of all operating ex-
penses, salaries, taxes, interest, maintenance
and depreciation.
After paying for all repairs and maintenance the Com-
pany set aside as additional reserve for depreciation no less
a sum than $56,892.75. The Depreciation Reserve now stands
at .$152,007.90. After payment of dividends at the rate of
10'; the Company increased its surplus by $38,897.85. It
now amounts to over $100,000.00.
During the year all outstanding bills payable have been
retired. During the year the fixed Inventory on hand in-
creased from .$288,200.88 to $334,73:5.01, and after providing
for all liabilities the surplus carried forward has reached the
sum of over $100,000.00.
The new building, which will contain five hundred guest
rooms, as well as stores, offices and public space, is rapidly
nearing completion, and it is estimated by the management
that when the new building is in full operation the net profits
to the King Edward Hotel Company will be over $400,000
per annum. On the completion of the building, Toronto will
have one of the finest hotels on the American continent, the
largest hotel in Canada and the highest hotel in the British
Empire. Retail business in Toronto will receive considerable
impetus from the completion of the new building, as the city
will then be able to accommodate large conventions and large
numbers of tourists, who invariably are good contributors to
the general prosperity of the city.
The following Board of Directors were elected: — F. A.
Dudley, President; F. W. Rockwell, Vice-President; W. J.
Cluff, W. A. .Mackenzie, Geo. H. O'Xeil, J. H. Spence, D. M.
.Johnson.
The Profit and Loss Account, submitted by President
Dudley, was as follows: —
LOUGHEED & TAYLOR, Limited
IMESTMEM SECURITIES
210 Eighth Avenue West
CALGARY
ALBERTA
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. W. MAHAN
President
J. A. WBSTMAN
Managing Director
Profit and Loss Account for Year Ending
December 31, 1920
B.llance brought forward Irmii Dtcembtr 31st, 1919
Opcratlug Profit for year ending December 3Nf !'i;
payment of Taxes. Salaries, ele
Interest on 1st and 2nd Mortgages . SSO.imn 00
Carried to Kepreelation Keserve after -payment of
Maintenanec Charges 56.892.75
113.892.75
138,897.85
100,000.00
Amount applicable to Dividends .
Dividends paid, during year
Carried forward to Surplus .\ecouiii
Net .Surplus December 31st. 1920 J100,493.53
At the meeting of the Board of Directors held subsequent
to the Annual Meeting Mr. F. A. Dudley was re-elected Pre-
sident, and Mr. Frederick W. Rockwell", Vice-President. At
this meeting also the regular half-yearly dividend on the
common stock of S'i was declared, payable April 15th next.
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
Ames-Holden pfd.
Atlantic Sugar
Bell Telephone
Brazilian T.L. & Power
B.C. Pish
Brompton Pulp & P. . .
Canada Cement
•• ...pfd.
Can. Con
Canadian Cottons
Canadian Car
■■ ...pfd.
Can. Loco pfd.
Canadian Gen. Elec...
C.P.R
C. Iron Found pfd.
Can. Steamship
■ ■• pfd.
■• •• deb.
■ " Vot. Trust
Con. Mining & Smel...
Del Rys
Dom. Cat
Sales Open High Low Close
Dom. Coal pfd.
Dominion Bridge
Dom. Iron pfd.
Dominion Glass
■ ...pfd.
Dom. Steel Corp
•■ ..pfd.
Dominion Te.xtile
•■ ..pfd.
Howard Smith /
. pfd.
Illinois Traction ..pfd.
Kaministiqua
Lake of the Woods
Laurentide
LyallCons
Macdonald Co
Maple Leaf Hilling....
Mont. Cottons
•' pfd.
Montreal Power.
Tram
• Deb.
Telegraph...
National Breweries —
Ogilvie Plour Mills
" pfd.
Ottawa
Penmans ■.-
Quebec Ry. L. H.&P..
Riordan Pulp & P
•• ..pfd.
St. Lawrence Fl. Mills.
Scotia
■• pfd,
St- Maurice pfd.
Sherwin Williams ....
■■ ..pfd.
Shawinigan W. & P
Spanish River
■■ pfd,
" Div.Vou
Steel Co. of Canada...
• •• ■• pfd
Toronto Ry
Twin City
Wabasso Cotton
Wayagamack P. & P. .
Winnipeg Ry
Kaiiks
Commerce
Hochelaga
Imperial
Merchants
Motsons
Montreal
Nationale
Nova Scotia
Royal
Standard
Toronto
Union
BOlMiS
Asbestos Corp .-
Bell Telephone Co
Can. Cement
Can. Cottons
Can. Rubber
Cedars Rapids Mfg...
City Mont. Dec. 6s. 192'
■• May6's,l92:
■• Sept.6's.l92:
Dom.Can.W.Loan.l92
43j
9\i
24i 24*
30J 285
66J
461
Victory Bonds. 1924..
1934.
1922..
1927..
1937.
1923.
1933.
5
7500
200U
2O0O
2S0fl0
2000
47100
6000
2500
2604
2804
M20
18949
176362
37747
12310
9433:
86091
42299'
87* I 90
nofiTKBAL-Contimied.
Bonds
Sales Open High Low Close
36000
2000
Dom. Cottons . .
Dom. Coal
Dom. Iron
Dom. Steel
Dom. Textile...
Lake of Woods.
Lyall
Mont. Power . .
National Brewe.
Ogilvie Flour.
Penmans zouuu'
Price Bros
Quebec Ry.L.H.& P.. . 56100
Scotia
Sherwin-Williams
Steel Co. of Canada. . . 4000
Wabasso Cotton
Wayagamack P. & P. . . 22400
Winnipeg Elec i
80! 81
'92' "92'
6S 63^
9(t 94J , 944
78 76 ; 7fii
TORONTO— Week Ended Mar. %ud.
.pfd.i
Stocks
Atlantic Sugar
Ames-Holden . .
Abitibi
Barcelona
Bell Telephone ,
Brazilian Traction. ..
Burt. F. N
B.C. Fish
Can Bread
Can.Car&F pfd.
Canada Cement
•■ ...pfd.
Canners.-.
pfd.
Canadian Pacific R....
Can. Gen. Elec
...pfd.
Canada Steamship
pfd.
Can. Salt
Con. Gas
Dome
Duluth
Ford Motor
Loco
" pfd.
Lake of Woods
Mackay Companies
" ...pfd.
La Rose
Maple Leaf
■■ pfd.
Monarch
N. S. Car pfd.
.N'ipissing
Porto Rico
pfd
Pac. Burt pfd
Prov. Paper-.
Quebec R.L.H. cV P..
Rogers
Salesbook ptd,
Sawyer-Massey
'■ ...pfd.
Sh. Wheat
Smelters
Spanish River
...pfd.
Steel Corp
Steel Company
....pfd.
TooUe Bros pfd.
Toronto Ry
Tretbewey
Tucketts
pfd.
Twin City
Winnipeg Elec
Banks
Commerce
Dominion
Hamilton
Imperial
Montreal
Nova Scotia
Royal
Standard
Union
Loan and Trust
Col.Inv
Can. Perm
Ham. Prov
Toronto Gen. Trusts...
Union Trust
Uonds
Can. Bread
ners
Sales Open High Low I Close
30i 30*
Loc
. S. S.
1000
1000
3000
1000
4200
32000
m
sl
107
104
338
32-i
106
104
43*
40J
19
19
71
■30^
604
60
,12^
30J
Ml
80
1344
131
I mi
1061
lOOi
100
30i
■iS'.
68i
664
87
87
67*
69?
163
16i
vSO
.SO
81
81
464
464
46!
478
TORONTO— Continued
War Loans
Sales Open High Low Close
Victory Loan 1922
1923
1927
1937
19'J3
1934
19'J4
W.Loan,1925 23100
" 1931 1 11300
" 1937! .57750
79300
7S7S0
49450
515500
233800
912400
8097,50
?.B
WINXII'Et;— Week ended Fell. 26lli.
Victory Loan 1922
■ 1923
" 1934
" 1927
" 1937
" 1933.?....
■' 1934
War Loan 1931
" 1937
•' 1925
North Star Oil pfd.
Standard Trusts
Western Grocers
Union Bank
7950
1550
6350
22350
724.5C
1600
2500
3700
High I Low I Close
NEW YORK— Week ended Feb. %Uth.
Sales Open High i Li
Canadian Pacific
Canada Southern
Nova Scotia S. SCoal.
Granby Consolidated . -
54% 1921
5% 1926
5J% 1929
5% 1931
40000
33000
29000
77000
LONDON. Eng.— Week ended Feb. Igth.
Gov't. A IHnn.
Alberta 44%
Canada. 3i% 1930 50...
.... 34% 1909-34
" .... 4% 1940-60.
" .... 4J% 1920-25
Calgary 4j^« deb...
Edmonton 5% bds.23-.53
5%.
Sales Open High Low Close
Nfld.34'
Manitoba 4% deb. 1949.
■■ 44%
Montreal 44% Reg
3%
4% cons. deb.
Moose Jaw 44% deb . . .
Nova Scotia 4i% cons.
Quebec 4%. 1888
" 44% Reg
■■ 3V6
Toronto 4% deb
•• 4j% 1948
Victoria 34% 1921-6...
34% 1923
4% cons
" 54% cons.
Vancouver 4% bds
Winnipeg 44% 1940-60. .
4% cons. 1940
Railways
Can. Nor. 4% deb. 1939
•' ■■ Ont.3j%db.'38
■• Pac. 4% deb.
Can. Pac
" 4% deb.
■■ 4% pfd.
G.T.P. Br. 4% bd 1939.;
G.T.P.3%bds -..|
G.T. P.4%19SS
Gr. Trunk... 4% guar.
Gr. Trunk5% 1st. pfd..
Gr. Trunk 5% 2nd pfd..
Gr. Trunk 4% 3rd pfd.
Gr. Trunk 4% cons. .
Gr. Tr. West. 5% deb..
Ont.& Quebec 5% deb.
P. Gt. East. 44% deb. '42
Ind.. Fin., Kle.
Can. Cement 7%
Can. Car 6% bds
Can. West Lumber 5%
Calgary Power 5% bds-
Can. Gen. Elec
Toronto Pow. 44% deb.
Can. Bk. of Commerce
Bank Montreal
564
March 4, 1921
THE MONETARY TIMES
Corporation Finance
Montreal Cottons Had Satisfactory Year — British Columbia Fishing and Packing Statement Contains
No Unusual Changes— King Edward Hotel Profits Increased Last Year — Asbestos Corporation Reports
Record Operations— Canadian Pacific Railway Net Earnings Show a Slight Improvement in January
Canadian Pacific Railway. — Gross earnings of the road
for January amounted to $14,465,430, operating expenses to
$13,824,005, leaving net at $641,424. In other words for
every dollar the company received in revenue, it paid out
approximately 95 cents in operating expenses. Comparison
of the January earnings follows: —
Jan., 1921.
Gross $14,465,430
Expenditure . . 13,824,005
Jan., 1920. Increase.
$13,914,569 $550,860
13,328,628 495,377
Net $ 641,424 $ 585,941 $ 55,483
Asbestos Corporation of Canada. — Profits of the com-
pany from operations during the past twelve months of 1920,
after provision was made for government taxes, amounted to
$1,661,672, a gain of $187,020 over 1919, when the total
reached the then unprecedented level of $1,473,752 and an in-
crease of $484,493 over the 1918 exhibit. The corporation's
net revenue for the twelve months ended with 1920 reached
$1,786,938 against the 1919 total of $1,573,317, and that of
$1,253,823 in the preceding period. After all deductions
there remained a balance available for distribution among
the holders of the company's participating preferred and
common stock of $1,058,940, representing approximately 15
per cent, on the combined issues. This compares with 14.4
per cent, in 1919, 11.4 in 1918, and 3.6 per cent, in 1917.
After all deductions, and with the addition of the balance
carried forwai-d at the end of the preceding fiscal period of
the enterprise, total surplus, as at December 31 last, reached
the substantial total of $2,052,831, the sum of $466,440 being
added as a result of the year's successful operations.
The strong working capital position disclosed in former
statements underwent material augmentation during the year,
net working capital at the end of 1920 amounting to $3,398,-
494, compared with $2,921,728 in the 1919 report, arid $2,-
353,355 in that of 1918. The increase was due mainly to the
growth in the company's investments, which stood at $2,038,-
746 at the end of last year, an increase of upwards of $400,-
000. Cash in hand is shown in the statement under review
at $614,808, or less by almost $160,000 from the total of a
year ago. Accounts and bills receivable on the other hand,
are up by almost $200,000 in the year, while inventories of
asbestos, materials and supplies are down by some $470,000.
King Edward Hotel Co., Ltd. — Operations of the com-
pany for 1920 produced a profit of $284,790, after providing
for cost of operation, taxes, salaries, maintenance, etc. After
payment of interest and setting aside depreciation reserve
there remained a sum applicable to the dividends of $138,897,
as compared with $126,111 in 1919. During the year two
dividends of 5 per cent, each were paid on common stock
aggregating $100,000, and the balance was carried to surplus,
which now amounts to $100,493. The changes reflected in the
balance sheet are not very significant. Depreciation reserve
was increased from $95,115 to $152,007, and bills payable
have been entirely wiped out. Fixed inventories are shown
at $334,733, compared with $288,200 previously.
In his report to shareholders, Frank A. Dudley, presi-
dent, says: —
"Referring to the addition which is being constructed
by the King Edward Construction Co., Ltd., the foundation
and steel erection have been completed. The floors and im-
portant partitions are practically complete, and the brick-
work is three-quarters completed. The plumbing and in-
stallation of the mechanical plant is proceeding with proper
progress, and it is to be hoped, with the continuation of
favorable conditions, that the building will be available for
actual use in September of this year. While the past year
has not been one especially favorable to the financing of
projects of such magnitude, I am able to state that the first
mortgage amounting to $1,300,000 has been fully settled and
placed with the Metropolitan Life Insurance Co., and ad-
vances to the extent of $250,000 have been made thereon, and
there is still available to be received for the completion of
construction and equipment, $1,050,000. I am also able to
state that as a result of recent negotiations, the remainder
of the preferred stock of the King Edward Construc-
tion Co., Ltd., has been sold on terms favorable to the com-
pany, which should be of satisfaction to the shareholders.
While the year 1920 -was recognized as a year of business
activity which aflforded to hotels a very large volume of
business, and in the year 1921, so far, business has been
greatly curtailed in many lines, and increased transportation
rates have materially lessened travel, notwithstanding these
facts the King Edward Hotel did a volume of business in
January, 1921, of $155,884, as against a volume of $135,338
in January, 1920, with a net profit for January, 1921, of
$20,546, as against $15,382 in the corresponding month in
the previous year, which shows convincingly the continued
increase in both gross and net resulting from operation."
British Columbia Fishing and Packing Co.— The annual
statement of the company, while not quite as clear as it
might have been in the presentation of facts, is sufficient to
show that the changes which took place in operations last
year were not of a significant character. The profit and
loss statement is not included, so that it is impossible to tell
the precise amount of the profits for the year, but Wm. H.
Barker, president, refers to them as being "usual." It is
said in behalf of the management that confusion in the past
has arisen through the fact that there were two companies
affected by the report, the British Columbia Fishing and
Packing, which was a holding organization, and the British
Columbia Packers' Association, which has control of the
actual operations. The dual method has now been abolished,
for, at an extraordinary meeting held in November last, it
was decided to make the British Columbia Fishing and Pack-
ing Co. the operating company.
Some of the principal changes in the balance sheet are
as follows: —
1920. 1919.
Plant, less depreciation.... $2,384,497 $2,462,648
Inventories 588,352 628,330
Fish on hand 681,286 386,050
Cash 116,990 223,962
Total assets 4.640,027 4,548,025
Reserves 804,650 751,614
Surplus 1,495,878 1,465,802
The company only operated fourteen canning factories
last year as compared with twenty-four the previous year,
ten in Noi-thern British Columbia and four on the Eraser
River. In addition there were operated in 1920, as in 1919, a
cold storage plant and a saw mill. J. M. Whitehead, the
general manager, does not intend to expand operations dur-
ing the ensuing year, but will operate the same canneries
the coming season, and is preparing for about the same pack.
Montreal Cotton.s, Ltd. — The annual statement of the
company which was presented to shareholders at the annual
meeting in Montreal last week, while disclosing net earnings
at a slightly lower level than in 1919, is to be considered
very satisfactory. The report shows net earnings applicable
on the outstanding stock of the company of $617,252, as
compared with $662,538 in the preceeding year, and $681,220
46
THE MONETARY TIMES
Volume 66.
in 1918. This is after deduction of all operating charges,
bond interest, bad debts, war taxes, etc. The showing indi-
cated that 20. .57 per cent, was earned on the outstanding
capital stock of $;!,000,000 as against 22.08 per cent, in 1919
and 22.70 per cent, in 1918. During the year the dividend
on the stock was increased from 4 to 6 per cent., so that dis-
tributions in 1920 amounted to $390,000 as compared with
$345,000 in 1919 and $330,000 in 1918. This deduction leaves
addition to surplus account of $227,252 as compared with
$317,538 in 1919 and $351,220 in 1918.
There was a large increase in operating expenses, these
totalling $8,039,130 in 1920, as against $6,616,715 in 1919
and $5,096,246 in 1918. In the year total cloth sales amount-
ed to $8,804,459 as against $7,678,506 in 1919 and $5,917,520
in 1918. With the addition of cloth in process, total cloth
amounted to $9,409,064 as against $8,319,135 and $6,624,900
in the two preceding years. After deducting the balance of
cloth in hand and in process carried forward from the pre-
vious year, the net cloth sales and in process amounted to
$8,768,434 against $7,611,755 and $5,799,342 in the two pre-
ceding years.
The balance sheet reveals a very comfortable position,
net working capital being $3,557,232, as against $3,003,949
in the previous year. Some of the principal comparisons
are as follows:
1920. 1919.
Properties $4,132,422 $4,141,521
Current assets 4,438,918 4,190,242
Capital stock 3,000,000 3,000,000
Funded debt 613,200 654,451
Surplus 4,284,371 3,089,142
Current liabilities 881,686 1,186,298
In his remarks to shareholders, S. H. Ewing, president,
remarked: — "This year was one of great commercial up-
heaval— labor was clamoring for higher wages; raw cotton,
coal and supplies soared to prices unknown, with the trade
demanding more goods, this continued for seven months, and
then, without warning, business suffered an immediate col-
lapse. Supplies, especially raw cotton, had a phenomenal
decline. Your company having to retain the good-will of the
trade had to accept cancels and meet the prices of goods
being dumped into Canada; having the raw cotton on hand,
bought at high prices to meet these contracts, you will
recognize that the profit for the year suffered heavily, never-
theless, we are pleased to place before you a statement to-
day which we consider satisfactory. Reserves have been
provided for cotton bought which has declined in value since
its purchase. The works have been fully mamtained and are
in a high state of efficiency."
Black Lake Asbestos and Chrome Co., Ltd. — By the elec-
tion of a board of directors, nominated by J. A. Jacobs, of
Montreal, who owns 29,000 out of the 40,000 shares of the
company, the differences which have existed over the manage-
ment of the company are now in a fair way of settlement.
At the annual meeting of the company in Toronto this week,
bondholders named an alternative slate, but were outvoted.
Mr. Jacobs was not present at the meeting, on account of
illness, but W. E. Neuman, of New York, who spoke for Mr.
Jacobs, said the bondholders had no reason to fear the future,
as, if the company succeeded, their position would be im-
proved. J. C. Chalmers, of Copper Cliff, Ont., who led the
bondholders in their participation in the meeting, said the
owners of the bonds had pooled their holdings to protect
their interests, and would meet later with a view to renew-
ing the pool.
The annual report for the year ended December 31 last
showed an increase in profit from operations of $161,097,
against $155,129. Bond interest for both half-yeai'ly terms
were paid, amounting to $71,280, against $35,745 in the pre-
vious year for one tei-m. Total income was $195,668, com-
pared with $179,835. After paying all expenses, interest on
bonds, and allowing for depreciation, there was a surplus of
$1,510, compai-ed with a loss of $4,975 in the previous year.
Total assets are now $5,245,100, against $5,324,877. Current
assets are $365,550, against $377,345, and current liabilities
$53,848, compared with $115,876, so that the company's work-
ing capital has increased by $50,000 in the year. President
Massie reported that the cash value of the company's output
was much in excess of previous years, though short in tons,
advantages having been accrued from changes in process of
extraction and enhanced value of the fibre recovered. New
methods of extraction, he believed, would add materially to
earnings this year. A subtsantial portion of the estimated
output for 1921 has been sold.
Bell Telephone Co., Ltd. — While telephone revenue for
1920 increased $2,364,264 over 1919, the enormous incre&se
in opera.ting expenses brought the net telephone earnings
down to $218,043, or $1,717,171 below the previous year.
There was a considerable increase in net sundry revenue,
but total net earnings were only $881,552, compared with
$2,153,324 in 1919. After deducting interest and before al-
lowing for dividends, there was a deficit of $31,961. The 1920
dividends, which amounted to $1,800,010, were charged to
surplus previous to 1917. The following are some of the
principal compwisons of earnings and expenses: —
1920. 1919. 1918.
Telephone revenue $16,513,384 $14,149,119 $12,227,545
Telephone expenses 16,295,341 12,213,904 10,550,459
Net telephone earnings . . 218,043 1,935,215 1,677,085
Total net earnings 881,522 2,153,324 2,104,688
Interest to be deducted . . 913,483 670,208 562,053
Dividend at 8 per cent. . . 1,800,010 1,440,000 1,440,000
Last year was the worst year that the company has
ever experienced in regard to net earnings. In 1900, when
the total assets were $7,498,762 (excluding cash arid receiv-
ables), the percentr.'ge of earnings to assets was 5.8. In
1905 the figure was 7.1, in 1910 it was 7.6, in 1915 5.6, in
1919 3.9 and for 1920 it was still further reduced to 1.4 per
cent.
In their report, L. B. McFarlane, president, and C. F.
Sise, vice-president and general manager, remark: "The very
lengthy delay in obtaining a rate decision — a period of over
two years — E-nd our consequent inability to properly finance
in the meantime for needed expansion, have crippled our
efforts to properly serve the public. Early in 1918 it was
found that the greatly increased cost of operations made it
essential that there should be a substantial and immediate
increase in r&tes. Application was therefore made before the
Dominion Board of Railway Commissioners in October, 1918,
for an increase of 20 per cent. In May, 1919, the commis-
sioners, after testimony, ordered temporary relief by allow-
ing a 10 per cent, increase, being only one-half of the sum
asked for, and it proved entirely inadequate to meet the even
so-called. emergency. The board retf.'ined the conduct of the
case, and requested us to furnish detailed monthly returns
for the succeeding year. After the expiration of that time,
on August 5, 1920, we renewed in more detail our applica-
tion, and asked for a general readjustment of rates. This
application is still before the commissioners for decision.
Our CB'Se was ably presented, and we are hopeful of receiving
a favorable decision."
The balance sheet reflects the growth an4 the many
changes which have taken place in the organization during
the past year. The following are the principal comparisons: —
1920. 1919.
Real est&te $ 5,165,860 $ 4,607,535
Telephone plant, etc 51,729,192 45,033,651
Investments 2,843,327 3,794,627
Capital stock 22,657,000 22,336,300
Bonds 16,649,000 11,149,000
Surplus and reserve 21,614,999 20,580,632
In the Toronto courts on February 28 the National Trust
Company, as executors of the Rodden Estate, urged that the
city be required to make a deposit in advance of arbitration
proceedings in connection with a property being acquired by
the city from the estate. A payment of $12,000 was made
on account
March 4, 1921 THE MONETARY TIMES
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American Sales Book Company
LIMITED
REPORT OF THE DIRECTORS
to the Shareholders for the year ended Dec. 31st, 1920
riie Directors present herewith their Report showlnc the results of the Company's operations for the year ended December 31st, 1920, with
the accompanying Statement of Assets and Liabilities, as follows :
Balance brought forward from 1919 1270,851.83
United States Tederal Taxes on 1919 EariVings paid in 1920 22,H6.72
Profits for the year
The Approprlntlon.s were as follow--
Inlerest on Bonds
Tianslerrcd to Reserve lor |ic]ii.-. i:ilir.n
In Reduction of Patents .\' . .lum
Dividends paid on Pi .linu. , .-^Imc k :
Four iiuarlLTly Dividends at rale ol ;• / per
On Account of arrears of dividends ihi'/c
Balance carried forward
$ 28.921.50
130,658.73
50,000.00
The profits for the year are the best In the Company's history and exceed by 1175.411 27 those of 1919.
The Inventories have been written down to correspond with present market prices, the shrlnkaEe ImvlnR been churKcd olT in the year's
operations.
The Profit and Loss balance Is subject to deduction of United States Federal taxes, the amount of which cannot he accurately determined
at this lime.
The regular quarterly dividends at the rale of 7*7 per annum, and in addition, two quarlers of arrears of dividends, were paid on the
Preference shares during the year. It Is hoped that It will be possible to make a similar distribution during 1921. The arrears of dividends are
MOW 8%9r.
AllhnuBh a falling off in business was experienced during the last quarter, the prospects are encouraging for a gradual return to normal
vnlu
■ during 1921.
By order of the Board,
S. 3. MOORE, President.
Balance Sheet, December 31st, 1920
ASSETS
Real Estate and Buildlncs $ 3«,.;6.S.S;)
I'lant, Jlaehlnery and Eciuli)ment 1,236,58^,74
Investment In Other Companies _ 180.500.00
(As valued by the Company's officers and not
exceeding cost)
Patents and Goodwill -... 2,474,563,05
Merchandise
Prepaid Charges _
Acii.uuts and Bills Receivable
Cash at Bank and on hand
LIABILITIES
.U'lTAI, .STOCK;
Preference Stock .
Common Stock
.$ 654.208.57
33,309.83
.iS2,367.I3
66,431.74
Accrued Interest on above
.Accounts and Bills Tayable
Reserve for Depreciation on Bidldings, Plant
and Machinery —» - t
Other Reserves
Profit and Loss Account Balance (subject to
U. S. Federal Taxes on 1920 Profits)
709,731.7
33,224.(
.55,630,.536.00
AUDITORS' CERTIFICATE
We have audited the accounts of the American Sales Book Company. Limited, for the year ending 31st December, 1920, and we certify that
in our opinion the above Balance Sheet Is properly drawn up .so as to exhibit a true and correct view of the Company s affairs according to ine
best of our information and the explanations given us and as shown by the books of the Company.
We have received all the Information and the explanations we have required.
CLARKSON, GORDON & DILWORTII.
Chartered Accountants.
At the Eighth Annual General
were elected for the ensuing year
E. Ames, Charles G. Brand, Charles
Weston, and Chauncey W, Crofoot was appointed Secretary.
•al Meeting of the Company, held In Toronto on March 1st, 192J, the following Board of D rectors and Officers
; S. J. Moore. President; W. D, Van Horn, Vice-President ; A. M. Bovier Treasurer ""^l,^'™^"' ^'"""S^^' f.
:les W. Colbv Ph.D., Frank A. Deans, Hon. Holland S. Duell, Hon. W. C^iryl Ely. Wni. 0 Connor, George
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THE MONETARY TIMES
Volume 66
RECENT F I K E S
iS'ova Scotia Steel and Coal Company's I'lant at Trenton,
N.S., Damased to Extent of $60,000— Catholic School at
Loiselleville, Ont., Suffered Loss of $40,000
Brandon. Man. — February 23 — Smoke and water did
damaso to the Hub Clothing Store to the amount of $16,000,
according to the valuation of the proprietor, Peter Cristall.
Part of the loss is covered by insurance.
Creighton Mine, Ont. — February 2.') — ^Creighton Mine
schoolliouse, a six-roomed frame building, was reduced to an
ash-pile. The cause is believed due to the furnace. The re-
placement cost will exceed $20,000.
Hamilton. Ont. — February 24 — A fire of unknown origin
did $1,000 damage to a brick dwelling at 2.31 Mary Street,
owned by S. Howard. The loss is covered by insurance.
Lambton, Ont. — Februai-y 27 — The Barnacre Building
was destroyed by fire. The building was owned by J. J. Quirk,
of Toronto. The loss is estimated at $25,000.
Loiselleville, Ont. — February 26 — Fire starting from an
overheated furnace practically destroyed the Loiselleville
Catholic Scliool and threatened destruction of the village.
The loss is estimated at $40,000.
London, Ont. — Febiniary 22 — A fire totally destroyed the
bam of Samuel Gowdridge, on the Governor's Road, three
miles east of the city, together with a quantity of hay, straw
and grain. The loss will be several thousand dollars, partly
covered by insurance.
February 23 — The billiard parlors and shoe shining
stand, owned by John CaiT, 376 Richmond Street, was dam-
aged by fire. The loss is estimated at $10,.500, with insur-
ance of $7,.')00.
March 1 — Loss exceeding $15,000 was caused by a fire
in the Cook Block, at the corner of Dundas and Talbot Streets.
Montreal. Que. — February 17 — The home of O. Beaudoin,
140 Chapleau Street, was damaged to the extent of $500 by
a fire which was caused by a coal oil stove.
February 18 — A fire, which started in the kitchen grate,
did damage estimated at $3,500 to the home of Ferdinand
LaRocque, 39 Maria Street.
February 23 — Residence of Leopold Leclair, 388 Rivard
Street, was damaged by fire. The fire was caused by incen-
diarism. The home of E. Sequin and J. Denis, 507 Workman
Street, was damaged by fire. A warehouse and tailor shop,
owned by John Kion, 262 Amherst Street, was damaged by
fire. Damage estimated at $500 was caused by a fire which
broke out in the premises of James M. Aird, Ltd., 165 St.
Urbain Street.
North Cobalt, Ont. — February 28 — A fire, which is
thought to ha\e started from paper ignited by stove sparks,
destroyed the home of Norman Bailey and spread to the one
occupied by F. Racicot.
Ottawa, Ont. — February 28 — The rooming-house, ten-
anted by Mrs. M. M. Hallady, was damaged by fire. The loss
is estimated at $1,500, fully covered by insurance.
Tompkins, Sask. — Febi-uary 23 — A hotel, two restaurants,
one general store and one hardware store were destroyed by
fire.
TENDERS FOR DEBENTURES
BURNABY, B.C.
Firm oft'er will be received up to noon, Monday, March
14th, for $71,700.00 Burnaby, B.C., school debentures, six per
cent., maturing December 31st, 1935, and $60,000.00 water-
works debentui-es, maturing December 31st, 1940; payable
New Westminster and Montreal. Interest payable June 30th
and December 31st. Debentures certified to by inspector of
municipalities. Denominations, $100 and $500. Cheqiie for
one per cent, of total bid must accompany tender.
ARTHUR G. MOORE, Clerk,
467 Edmonds, B.C.
Toronto, Ont. — February 27 — The home of Mrs. J. Oliver.
372 Howland Avenue, was damaged by fire to the extent
of $800.
March 2 — A lighted candle overturned caused a fire in
a house at 152 Teraulay Street, occupied by S. Cohen, which
did $100 damage.
Trenton, N.S.— February 25 — The Nova Scotia Steel and
Coal Company's shipbuilding plant was damaged by fire.
The loss is estimated at $60,000, partially covered by insur-
ance.
Welland, Ont. — February 28 — Lambert's planing mill,
with machinery and other contents, was destroyed by fire.
The loss is estimated at $25,000.
Yarmouth South, N.S. — February 27 — Providence Metho-
dist Church was destroyed by fire. The loss is estimated at
$30,000, with $12,000 insurance on the building and $3,000
on the organ.
ADDITIONAL INFORMATION
Winnipeg, Man. — By the fire which occurred in the D. R.
Dingwall Block on the 2nd inst. the following companies are
interested: On Dingwall stock — Alliance of England, $9,000;
American Central, $5,000; Atlas, $2,000; British Crovni, $3,-
000; British America, $7,000; Commercial Union, $8,000;
Canada Accident, $2,000; Canadian Fire, $5,000; Canada Na-
tional, $3,000; Caledonian, $2,000; Continental, $5,000; Em-
ployers, $4,000; Firemen's of Newark, $3,000; Fidelity-Phenix,
$8,000; General Accident, $8,500; General of Paris, $30,000;
Guardian Assurance, $2,000; Globe Indemnity, $6,000; Im-
perial UnderwTiters, $1,500; Insurance Companies of Penn-
sylvania, $25,000; Eagle Star, $5,000; London .\ssurance,
$7,000; London and Lancashire, $3,000; Mount Royal, $2,000;
Mercantile, $1,500; Northwest Fire, $2,000; New Hampshire,
$2,000; Niagara, $10,000; North British and Mercantile, $6,-
000; Noi-wich Union, $2,000; Northern, $5,000; Ocean, $8,000;
Occidental, $2,000; Phuenix of Paris, $5,000; Pacific Coast,
$3,000; Protector Underwriters, $3,000; Palatine, $3,000; Pro-
vidence-Washington, $1,000; Quebec, $5,000; Queen, $5,000;
Queensland, $10,000; Rochester, $6,000; Royal, $3,000; Royal
Exchange, $6,500; St. Paul, $3,000; Springfield, $7,000; Union
of England, $5,000; Union of Paris, $2,000. Total, $262,000.
On Dingwall building — .American Central, $2,000; Cale-
donian, $3,000; Liverpool-Manitoba, $51,350; Niagara, $2,000;
Northern, $2,000; Ocean, $2,000; Royal, $2,000; State of
Pennsylvania, $2,000. Total, $66,350.
Bedford, Que. — January 27 — The post office owned by E.
J. Ferland was damaged by fire. The fire was caused by gas
ignited by coal stove. The loss is $7,000, with insurance of
$2,300 in the Northern British and Scottish Insurance Com-
panies.
Montreal, Que. — February 16 — A fire broke out in the
premises of the New Idep.. White Wear Co., on the third floor
of the building, 34-36 Notre Dame St. Insurance as follows:
Northern, $8,000; Union of London, $5,000; National Union,
$2,.5O0; Guardian, $2,000; Alliance of London, $3,000; National
Ben Franklin, $1,.500; Niagara, $750; Springfield, $7.50; Brit-
ish-Colonial, $500; total, $24,000. Loss about total. Other
insurance carried by various tenants in building included
Librairie L. J. A. Derome, Ltd. Insurance: North America,
$3,200; Norwich Union, $3,000; British Crown, $1,600; Union
of Canton, $1,600.
Trenton, Ont. — January 17 — A store occupied by T. P.
Michaud was destroyed by a fire which was caused by the
stove pipe. The loss is $4,700, with insurance of $1,600 in
the British Empire Underwriters Insurance Co.
Windsor, Ont. — February 1 — The roof of the fermenting-
room of the British American Brewing Co., Ltd., was dam-
aged by fire. The loss is $12,000, with insurance in the fol-
lowing companies: St. Lawrence LTnderwritei-s, Lloyds', Re-
ciprocal Exchange, Wellington, County Fire, London Guar-
antee, Occidental, Old Colony.
Pfl'I.liUKD EVF.RV FkIDAV
The Monetary Times
Printing Company
of Canada, Limited
"The Canadian Engineer'
Trade Review and Insurance Chronicle
of (Tanada
Established ISS';
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
British Columbia Legislature Now in Session
Trust Company Laws to be Consolidated — Action on Irrigation
Question Expected — Assistance Rendered by Department of
Industries— More Encouragement for Land Settlement and Agriculture
THE lt'21 session of the British Columbia legislature opened
at Victoria on February 8. The lieutenant-governor's
speech did not presage any legislation of a far-reaching char-
acter. It referred to the results of the recent referendum, in
which a large majority voted in favor of government sale
and control of liquor in sealed packages, in place of the pre-
sent prohibition law; this, the government said, would be put
into effect. Lieutenant-governor W. C. Nichol continued: —
"In pursuance of its policy to increase agricultural pro-
duction, my government, through its Land Settlement Board,
has let a contract for the construction of dykes to protect a
large area of land at Sumas, in the Fraser Valley. In several
of the settlement areas constituted under the provisions of
the Land Settlement and Development Act creameries have
been established to encourage the dairying industry. This
policy will be continued, wherever such assista-nce appears
warranted. You will be asked to provide a sum of money
for subsidizing the use of explosives in the clearing of land
for agricultural purposes and to assist bona-fide mineral pros-
pectors. Legislation passed in previous sessions dealing with
the matter of irrigation is proving efficacious a^nd the solu-
tion of the problem is now assured. The irrigation project,
undertaken by my government in South Okanagan district,
has been advanced expeditiously. Part of the lands and a
portion of the townsite property will be placed on the market
at c-n early date. While the timber industry suffered a de-
cline during the latter half of the year, the aggregate pro-
duction exceeded that of the previous year, and the outlook
for 1921 is improving. Legislation will be submitted extend-
ing the time for payment of timber license fees in arrears."
Reference was also made to mining developments and
health measures, and to the triins-provincial highway, on
which progress was made during the year.
Interest on Provincial Loans
Three bills have been presented by the minister of
finance to authorize this increase in the rate of interest pay-
able on government loans. They provided for amendments
to that effect to the B.C. Loan Acts of 1921, 1917 and 191C.
On February 10 the second reading was moved by Premier
Oliver to a bill providing foi* increasing the maximum in-
terest i&te to be paid for loans under the Department of
Industries Act. It was in this connection that the premier
explained the reasons for the amendments. W. J. Bowser
inquired if any money has as yet been borrowed under that
act and the premier stated that none had been so far.
Nine Months' Finances
Taxes came into the provincial trea'Sury so fast during
the last nine months of 1920 that the revenue for that period
nearly equalled the estimated revenue for the whole fiscal
year, which ends on March 31, 1921. At the same time ex-
penditure was kept down so that while the estimated ex-
penditures for the fiscal year were $17,413,823, the actual
for the nine months was only $15,327,897. Actual revenue
for the first nine months exceeds expenditures by $59/790.
These facts ai-e shown in the repoi-t of the comptroller-gen-
eral, presented to the legislature on February 18 by the Hon.
John Hart.
The finance department estimated that its revenue for
the whole year would be $7,689,715, the report points out.
Actual receipts for the first nine months, however, amounted
to $7,564,761, which, it is emphasized, is nearly the amount
of the estimate for the whole year. The report shows that
during the first nine months of the financial year there was
borrowed $7,882,775 for the following capital expenditures:
Pacific Great Eastern, $4,244,668; L^nd Settlement Board,
$850,000; better housing scheme, $756,250; industrial develop-
ment, $755,000; Soldiers' Land Act, $368,138; conservation
fund for irrigation, $275,000; trunk roads and bridges, $633,-
719. Capital expenditure under loans on public works in the
nine districts of the province are: District No. 1, embracing
Vancouver Island and Comox, $139,889; District No. 2, em-
bracing Vancouver &nd the Lower Mainland, $527,640; Dis-
trict No. 3, Kamloops.
A "Blue Sky" Law
Something approaching a "blue sky" law is incorporated
in the new Consolidated Companies Act which is before the
legislature. In response to signs that more effective provi-
sions should have been made to force companies doing busi-
ness in British Columbia to live up to the terms of their pros-
pectuses, the Attorney-General said that in respect to some
incorporated companies it is proposed that prospectuses set
forth in detail facts concerning the company, full particulars
of the plan of operations and other details.
In the case of extra-provincial compa-nies no one may
offer for sale shares thereof unless such companies have
been registered to carry on business in British Columbia and
unless, where "blue sky" laws are in operation in the terri-
tory in which such extra-provincial concerns are incorporated,
a copy of the license incorporating the companies is filed,
with the registrar of joint stock companies.
Trust Company Laws
On February 15, Attorney-General Farris introduced a
bill relating to trust companies. It provided for the revi-
sion and consolidation of the existing laws covering trust
companies, and contains few, if any, new principles. The
bill WR'S given its first reading. Second reading was given to
the three bills providing for the increase in the maximum rate
of interest to be paid on loans made under authority of the
B.C. Loan Acts of 1916, 1917 and 1918", from oVz to 6 per
cent. The bill to provide for a similar increase in interest
THE MONETARY TIMES
Volume 66.
rate on borrowings under the Department of Industries Act,
was put through the fomniittee stage, and read a third time.
The new liquor control bill w&s introduced on February
23. All spirituous and malt liquors will be sold by the gov-
ernment. There is no provision made for the licensed sale
of any intoxicating beverage by private parties. However,
it is understood that the act is subject to the most revolution-
ary revision and amendment while in the committee stage,
which provides the probability of the addition of sections to
the act allowing the ssAe of beer and light wines by agencies
other than the government liquor stores. The municipalities
aim at securing a share of the profits from the business,
though an alternative form of aid would be acceptable to
them.
Land Settlement Board
The Land Settlement Board's report for 1920 was pre-
sented on Febi-uary 21. A total of 42 loans aggregating
$71,440, were granted to 42 soldier settlers, bringing the
total up to date of 319, aggregating $655,640. Seventeen
loans, aggregating $36,750, were cancelled or withdrawn, and
18 for $22,050, were paid off by soldier settlers during 1920,
and 35 others for $58,800 were disposed of. There are at
present a total of 284 loans in force for an aggregate of
$596,840.
Pointing to the regulations which require owners of un-
improved lands to inaugurate improvements within a speci-
fied time or i-ender themselves liable to the penalty ta^x of 5
per cent, of the appraised value in addition to other taxation,
the report sets forth that work has proceeded on ten areas
during the past year. The total acreage taken over by the
government wr..3 121,141 acres, of which 46,647 acres have
been sui-rendered to the board at a cost of about $200,000.
There were 19,156 acres resold to bona fide settlers, including
53 returned soldiers, each of whom secured the statutory re-
bate of $500 on the purchase price of the lands taken.
The expenditure of the Land Settlement Board for the
year we.s $152,880. Revenue came $96,736 short of meeting
this.
Agricultural Credits Commission
The Agricultural Credits Commission during 1920 granted
42 loans, totalling $44,100. These with those previously in
force bring the total up to 383, amounting to $737,350.
Twenty-six loans of a value of $37,550 were paid off during
the year. The balance of the loans and interest at the end
of 1920 was $620,766. During the ye&r the commission spent
$62,744, including $45,000 interest on debentures to carry on
its work. Its revenue was $9,915 short of the total and this
amount has been set down as the deficit for the year. This
deficit has been reduced in -this way during the last five
years; 1916, deficit, $19,015; 1917, $22,200; 1918, $6,045; 1919,
$7,744; 1920, $9,915.
The assets of the commission at present are placed at
$1,040,808 and the lif-'bilities at the same amount including
$1,000,000 debentures due May, 1941.
Bonus for Steel Production
To encourage the establishment of iron and steel indus-
try in British Columbia, the provincial government has en-
tered into an agreement with the Coast Range Steel, Ltd.,
whereby the government promises to pay bounties not exceed-
ing $3 per long ton on pig iron manufactured from ore mined
in the province. The agreement sets forth that British
capitalists are prepared to invest the necessary capital, "not
exceeding ten million pounds," in the establishment of the
industry. Engineers are now investigating the resources to
ascertain if conditions are suitable for the establishment of
the industry.
Assistance to Industry
During 1920 an aggregate of $630,658.48 was loaned by
the department of industries to industrial enterprises out of
a totr.l of $3,044,050 applied for. From the inception of the
department up to December 31 last a total of 362 applications
have been received, of which sixty were approved. This is
shown in the second annual report of the department filed in
the legislature by Premier Oliver on February 15. The loans
ranged from $1,000 to $50,000, the Schaake Co., of Vancouver,
securing the lai-gest amount. The activities of the various
companies aided cover a vei-y wide range, from sawmills to
neckwear.
The findings of the committee which last year went east
and south to study market conditions in the steel industry
and ascertain the marketing possibilities for a British Colum-
bia iron and steel industry is included in the report. The find-
ings are those arrived at by Nichol Thompson and J. A. Mc-
Vety, members of the advisory board of the Department of
Industry, and Major Martyn, industrial commissioner. This
statement asserts there is a market on the Pacific Coast for
2,000,000 tons per annum of iron and steel, including tank,
ship and boiler plate, merchant bar. tool and mining steel,
structural steel, shapes and angles, and light rails. Mr.
Thompson says there is a local or domestic market on the
coast from British Columbia, to Los Angeles for 1,000 tons
per day of foundry pigiron alone, or 2,000 tons per day if
produced anywhere near the cost of steel scrap — $27 to $30
per- ton.
With regard to the growing export market, it is stated
that r.t present Canada exports little or nothing, while the
United States exported through Pacific ports appi-oximately
$100,000,000 worth of iron and steel products. A steel plant
in British Columbia is a necessity, not only from the local
viewpoint, but also in the opinion of many of the prominent
steel men along the Pacific Coast of the United States.
WINNIPEG ELECTRIC STILL IN ROUGH WATER
City Fights Recent Fare Award — Slight Improvement in
Western Business — Provincial and City Financing
(Staff Correspondence.)
Winnipeg, March 10, 1921.
THE western outlook this week continues quite favorable.
Collections are reported slow, but in many lines of
business marked improvement has been noted in the last
few weeks. Country orders are heavy and from present ap-
pearances it would look as if the west would have an eai-ly
opening up of spring. Agricultural conditions throughout
the three western provinces are in excellent shape, as a
great deal of fall ploughing' was done before the freeze-up
came.
The annual convention of the Saskatchewan Hail Insur-
ance Association was held in Regina this week, when re-
presentatives of over one hundred rural municipalities of
that province were in attendance. The board of directors
report a surplus as at the close of 1920 of over a half mil-
lion dollars on the last two years operations. A. E. Wilson,
of Indian Head, presided at the gathering, and matters of
considerable interest in the municipal hail insurance field
were discussed.
City Finances
On April 5th Winnipeg ratepayers will be asked to vote
on a money by-law for the raising of two million dollars for
the erection of more school accommodation. The chairman
of the school board states that all the accommodation is
taken up and many of the class rooms are over crowded.
Considerable discussion has been taking place in civic circles
regarding the tax rate for this year. Mayor Parnell is
scrutinizing the expenditure of all departments very care-
fully, but it looks as if the mill rate would be higher this
year than usual, and will probably run as high as thirty
mills.
The discussion in connection with the rates case of the
Winnipeg Electric Railway is proceeding in the courts, city
legal authorities trying to set aside the award of the Public
March 11 1921
THE MONETARY TIMES
Utilities Commissioner foi- higher fares which relief was
granted some time ago. These are strenuous days for public
utilities, no matter whether they are privately or publicly
owned. The Winnipeg electric is one of the many public
service corporations which has been having an uphill fight
for several year.s, and it would only seem right that they
Fhould be granted relief as well as any other transportation
system. The Winnipeg electric is one of the most efficient
systems of the American continent, and much credit is due
A. W. McLimont, the present general manager, for bringing
the service the company is now rendering, up to its present
ftate of efficiency. Mr. McLimont last week tried to ari-ange
an amicable adjustment with the city, but his proposition
was not agreed to, so that litigation is still in progress. It
is hoped that during this year the street railway question
will be permanently settled, as litigation is very expensive
to both parties.
C. J. Mills, superintendent, Toronto and western
branches American Bank Note Co., was a visitor in Winni-
peg this week
Hon. Edward Brown provincial treasurer, sold this week
$500,000 of the bonds of the province. The securities wei-e
five year five per cent, bonds and were prepared for dis-
tribution in the United States. The price realized was a
good one, the figure being $100,566. This offer was made by
the National City Co. of New York. The second bid was
$100.29 made by the Dominion Securities Corporation of Tor-
onto. There were nine bids in all; the lowest being $96,726.
Bids were opened at noon in the pi'esence of a number of
interested bond dealers.
The belief of the government is that within five years
the money situation will be greatly improved and the rate
of exchange between the United States and Canada much
nearer to normal.
The Week in Parliament
Estimates for 1921-22 Show Slight Decrease— Large Reductions Oflfset by Increase in Railway
Costs— Several Financial Bills Receive Second Readings— Strength of Government Tested in Division
(Special to 7/ic' Moiiclttry Times.)
Ottawa, March 10, 1921.
Thursday, March :i
In House <)f Commons: — Hon. W. I,. .Mackenzie King's
"No Confidence" amendment to .Vddress in reply to Speech
from Throne defeated by vote of 91 to 116.
In Senate: — (a) Revision of Punishments bill, third read-
ing; (b) Lake of the Woods Control Itoard bill, second read-
ing; and (c) Royal Assent to Act to amend Dominion Elec-
tions Act for revision of Ontario lists for coming referendum.
Friday, March -1
In House of Commons: — (a) Resolution introduced to ap-
prove Canada-West Indies agreement; (b) Kesoliition intro-
duced by Minister of .\griculture to permit sale and manu-
facture of oleomargarine in Canada: (c) Debate on (Jriesbach
motion asking that surface owiuts of oil lands get one-six-
teenth of oil obtained in development: and (d) .McCoig motion
asking for bill to provide for standardization of parts of agri-
cultural machinery agreed to.
Monday, March 7
In House of Commons: — (a) Sir Henry Drayton denied
report of New York bank that thirty per cent, increase in
customs tdriff was being considered: (b) First readings of
following bills: to incorporate Mayo \'allcy Railway. Ltd., re-
specting Oshawa Railway Co.. respecting Thousand Islands
Railway Co.; and (c) Second readings of following bills: — To
extend time for beginning and finishing work of .Montreal,
Ottawa and (ieorgian Bay Canal Co.. respecting Dominion
Life .Assurance Co.. to incorporate Fidelity Co. of Canada, to
incorporate North .Vmerican Trust Co. of Canada, to incorpor-
ate Canadian Bar .Association, respecting Cilmour and Hugh-
son, Ltd., and an .Vet to amend and consolidate acts respect-
ing inspection of gas and gas meters.
Tuesday. March 8
In House of Commons: — (a) Estimates tabled; (b) Mc-
.Master amendment to House of Commons and Senate .\ct that
ministers could not hold directorships defeated by vote of 54
to 105; (c) Second readings of following bills: to incorporate
Mayo Valley Railway, Ltd., respecting Oshawa Railway Co..
respecting Thousand Islands Ry. Co., and respecting James
McLaren Co.. Ltd.: and (d) General (Jriesbach withdraws
motion asking certain rights for owners of oil lands.
Wednesday, March 9
In House of Commons: — Debate on motion against ask-
ing Great Britain for repeal of cattle embargo.
In Senate: — Third reading Lake of the Woods Control
board.
The past week in the Dominion parliament has been
chiefly notable for two things, one the vote on the "No Con-
fidence" motion of the Hon. W. L. Mackenzie King, and an-
other the tabling of the estimates. The majority of 25 re-
ceived in the first vote established the government's con-
fidence in its ability to carry on through the session though
the practice of pairing enabled its majority to be greater
than it might otherwise have been, and greater than it may
be on the budget debate, or the debate on the railway esti-
mates. The estimates tabled consumed little time in parlia-
ment, but the fact that the great reductions expected in ex-
penditure on account of the dwindling in war and post-war
expenditures due to war were counter-balanced by the great
increases in proposed railway expenditures has caused con-
siderable discussion on both sides of the House outside the
Chamber. The minister claims that some of it represents
only bookkeeping, and that $140,000,000 is what the govern-
ment will have to provide, although thirty-eight million
dollars, more are shown in the estimates. Eighty-nine mil-
lion dollars is asked on account of the Grand Trunk Railway
Co., and fifty-seven millions of this is for deficits, interest,
fixed charges, betterments, and matured or maturing obliga-
tions. The deficit on the Canadian National and other rail-
ways is about the same as last year, and about three million
dollars more is required for them, the deficit being in excess
of fifty million dollars.
Estimates for the Year
The main estimates aggregate $582,062,698, a decrease of
$31,162,712 compared with last year. The amount charge-
able to revenue is $384,386,715, and capital $27,4.59,127. The
additional amount of $7,777,380 for demobilization produces
the total above stated. The railway estimates are large.
Those of the Grand Trunk are greater than those of any
other systems. The analysis of the Grand Trunk situation
indicates that some $57,000,000 will be required.
This is not, however, merely attributable to operating
deficits, as the Grand Trunk is faced with current and over-
due liabilities amounting to $20,000,000, as well as substantial
payments which will have to be made for sinking fund and
for refunding purposes. In addition to this the Grand Ti-unk
operating officers estimate that a new capital expenditure of
$12,000,000 should be made.
THE MONETARY TIMES
Volume 66.
The estimates provide $26,000,000 for the Grand Trunk
Pacific, of which $11,250,000 is for operating deficit, and some
$8,000,000 for interest requirements and fixed charges. Some
$6,000,000 is provided for betterment. The Canadian
National requii'ements are made up of operating de-
ficit of $7,000,000 on the Intercolonial and Transconti-
nental Railway, and $23,000,000 for operating deficit and
fixed charges on Canadian Northern. The operating deficit
in this case amounting to between $4,000,000 and $5,000,000,
and interest and fixed charges constituting the balance. The
vote is swollen by betterment, new construction on western
line, and stock requirements. It is explained, therefore, that
the net result is that the total railway obligations requiring
cash are some $140,000,000, as against the $178,000,000 for
which an appropriation is asked.
The canal estimates include a vote of $5,000,000 for the
VVelland, $100,000 for the Hudson Bay Railway, and $339,000
for the Trent Canal.
Public Works
Under the head of public works, the votes include for
harbor improvements $1,300,000 at Esquimalt (drydock),
$170,000 at Fort William, $136,000 at Quebec, $1,250,000 at
St. John, $1,000,000 at Toronto, and an additional $175,000
for protection for the Toronto breakwater. For public build-
ings the estimates are cut to the bone and are mainly for
repairs. The same policy is followed with regard to piers,
wharves and breakwaters. The site for the naval service is
placed at $3,726,980, an increase of $391,480. Under the head
of public works chargeable to capital the estimates include
$528,000 for the St. Lawrence Channel, $8,330,000 for gov-
ernment shipbuilding and $2,000,000 for a new ice-breaker.
For soldiers' re-establishment the vote is $19,310,000, for
pensions $31,816,923, and for militia $11,890,000. Public
works charged to income are $13,373,755, a decrease of two
and a quarter millions. The Air Board gets $1,625,000, and
Soldiers' Land Settlement $35,000,000.
Miscellaneous votes apart from the usual ones include:
$60,000 for Canadian representation at Washington; $58,000
for the Canadian Press, Ltd.; $2,000,000 for administration
of the Business Profits and Income Tax Act. Ten millions
for housing, $905,000 for Soldiers' Graves Commission, $200,-
000 for League of Nations Secretarial; pensions are decreased
five millions, and the re-establishment vote by 24 millions.
The main feature of the estimates is the hole eaten in the
revenue by the railways, causing everything else to be cut
down to the limit.
The Roumanian Credit
Negotiations are, it .is understood, in progress with a
view to a settlement ofl Canada's interest claim against
Roumania. When the first interest payment on the
Roumanian loan fell due on October 1, Roumania was unable
to pay and asked for an extension of time till April 1. This
was granted. There is now considerable doubt if Roumania
will be able to meet the payment in cash when it falls due
on the first of next month; and it is likely that some new
basis of payment will be arranged. The amount advanced
to Roumania m export credits was $20,571,222 out of a
nominal loan of $25,000,000. Interest due on April 1 amounts
to $1,475,234.
Workmen's Compensation Report
Great industrial activity for the first nine months of
1920 in British Columbia is shown, although there is a fall-
ing off in the last three months, by the fourth annual report
of the Workmen's Compensation Board, presented to the
legislature on March 1. The reserve fund is now $1,715,854.
During the year it is estimated $116,000 would be covered
by the act, with the payrolls amounting to $162,000,000. Ac-
cidents reported during the year numbered 20,902, of which
216 were fatal. There are now 1,326 persons receiving
monthly pensions. Claims amounting to $2,111,660 were paid
dui'ing the year.
N. L. McGloan and Co., investment bankers, Montreal,
have moved from 136 St. James Street to 55 St. Francois
Xavier Street.
WEEKLY BANK CLEARINGS
The following are the bank clearings for the week ended
March 10, 1921, compared with the corresponding week last
year: —
Week ended Week ended
Mar. 10,'21. Mar. 11,'20. Changes.
Montreal $102,291,531 $118,967,117 —$16,675,586
Toronto 97,608,955 90,770,871 -|- 6,838,084
Winnipeg 40,547,506 40,362,045 + 185,461
Vancouver 13,364,094 15,804,836 — 2,440,742
Ottawa 7,617,152 10,771,590 — 3,154,438
Calgary 6,640,958 8,271,410 — 1,630,452
Hamilton 6,013,765 6,372,559 — 358,794
Quebec 6,195,205 5,964,025 + 231,180
Edmonton 4,636,822 5,178,354 — .541,532
Halifax 3,812,260 4,685,549 — 873,289
London 3,621,852 3,662,898 — 41,046
Regina 3,560,220 3,819,586 — 259,366
Victoria 2,355,871 2,630,867 — 274,996
Saskatoon 1,846,527 2,089,014 — 242,487
Moose Jaw 1,321,687 1,532,242 — , 210,555
Brantford 1,031,055 1,211,352 — 180,297
Brandon 680,510 687,751 — 7,241
Fort William 941,336 698,404 4- 242,932
Lethbridge 576,421 679,993 — 103,572
Medicine Hat .... 436,061 435,429 + 632
New Westminster . 625,071 588,515 -|- 36,556
Peterbor 979,738 860,826 -1- 118,912
Sherbrooke 1,101.164 1,050,718 -|- .50,446
Kitchener 1,009,807 1,214,382 — 204,575
Windsor 2,730,249 3,003,606 — 273,357
Prince Albert 368,388 495,933 — 127,545
Total $311,914,205 $331,809,872 —$19,895,667
Moneton $ 1,495,014
MONTHLY BANK CLEARINGS
The following are the bank clearings for the month of
February, compared with the same month last year: —
Feb., 1921. Feb., 1920. Changes.
Montreal $437,822,619 $ 538,611,264 —$100,788,645
Toronto 408,802,335 390,838,269 + 17,964,066
Winnipeg 175,892.853 168,615,962 -t- 7,276,891
Vancouver 53,218,954 62,489,007 — 9,270,053
Ottawa 29,988,218 34,031,750 — 4,043,532
Calgary 24,790,795 30,013,304 — 5,222,509
Hamilton 21,962,250 24,675,066 — 2,712,816
Quebec 23.155,877 24,960,365 — 1,804,488
Edmonton 18,503,237 21,254,933 — . 2,751,696
Halifax 13,520,684 16,013,622 — 2,492,938
London 11,420,183 12,774,846 — 1,354,663
Regina 13,601,611 13,912,974 — 311,363
St. John 10,841,239 11,727,302 — 886,063
Victoria 9,410,534 11,160,924 — 1,750,390
Saskatoon 6,722,875 7,281,662 — 558,787
Moose Jaw 4,875,828 5,627,371 — 751,543
Brantford 4,905,499 4,774,589 + 130,910
Brandon 2,611,496 2,497,698 + 113,798
Fort William .... 3,464,679 3,528,317 — 63,638
Lethbridge 2,403,892 2,787,419 — 383,527
Medicine Hat 1,556,627 1,632,528 — 75,901
New Westminster. 2,441,207 2,418,964 + 22,243
Peterboro 3,378,990 3,177,888 -t- 201,102
Sherbrooke 4,293,446 3,873,412 + 420,034
Kitchener 3,472,010 4,002,016 — 530,006
Windsor 11,287,194 10,238,521 -|- 1,048,673
Prince Albert .... 1,284,255 1,709,674 — 425,419
Totals $1,305,629,387 $1,414,629,647 —$109,000,260
Moneton 4,377,519
March 11, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
of Canada
Address: Corner Church and Coart Streets, Toronto, Ontario. Canada.
Telephone: Main 7404, Branch Exchange connecting all departments.
Cable Address: "Montimes, Toronto."
Winnipeg Office: 1206 McArthur Building:. Telephone Main 8409.
G. W. Goodall, Western Manager.
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Journal of Commerce.
The Monetary Times does not necessarily endorse the statements and
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PRINCIPAL CONTENTS
Editorial: page
The Crop of Municipal Defaults .'.... 9
Deflation in the United States 10
Mortgage Discount and Finance, Limited 10
Facilitating Agency Business 10
Special Articles:
British Columbia Legislature Now in Session 5
The Week in Parliament 7
Winnipeg Electric Still in Rough Water 6
The Unemployment Situation in Canada 14
Manitoba Legislative Session 18
Would Have National Health Insurance 24D
Automobile Insurance Points 24D
Sale of Goods to Joint Purchasers 26
Monthly Dep.\rtments :
February Bond Sales 22
February Fire Losses 24
Weekly Depart.ments :
News of Industrial Development 28
Insurance Licenses and Agency Notes .30
News of Municipal Finance 32
Government and Municipal Bond Market 34
Corporation Securities Jlarket 38
The Stock Markets ' ' ' ' 40
Corporation Finance 42
Recent Fires 44
THE CROP OF MUNICIPAL DEFAULTS
WHILE bondholders have agreed to postponement in part
of the interest burden of several western munici-
palities, the number which are behind in their payments has
been increased through new additions to the list. At the end
of February there were five municipalities in Saskatchewan,
five in Alberta, and two in Ontario, which were having dif-
ficulty in meeting their payments. These were Battleford,
Humboldt, Melville, Scott and Canora, in Saskatchewan;
Beverley S.I)., Taber, Blairmore, Bassano and Redcliffe in
Alberta ; and Haileybury and Latchford in Ontario. Scott
has just paid its 1919 coupons, but funds are not available
for 1920 interest. Taber has paid up its 1920 debts and
Blairmore is in a fairly good condition. Regarding Latch-
ford, Ont., it is understood that the Ontario government will
guarantee some of the debentures.
Two other municipalities in Saskatchewan, although not
defaulters, are striving hard to make both ends meet. These
are Swift Current and Estevan. The first concrete steps
towards financial readjustment of the foi'mer are well under
way, and within the past two weeks representatives of the
bondholders, the banks and the city council have been fre-
quently in conference. The Godfrey report, which has al-
ready been outlined in these columns, is taken as the basis,
for discussion, and efforts are being made to try and arrive
at a mutually satisfactory conclusion as to just what weight
of the burden the ratepayers are capable of sustaining to
general advantage.
Estevan is experiencing its struggles in finance, follow-
ing a period of civic expansion, and later, the stringency
caused by the war. The rate of taxation has been between
42 and 48 mills during the last three years. In 1920 and
1919 it was 44, and 1918 was the record for high taxation.
The normal rate was between 20 and 2.') mills. The increased
rate was enforced because it was necessary if the town was
to pay its indebtedness, and even with the increased taxa-
tion there is still very careful management required. But
so far there has been no default in payments on bonded in-
debtedness and all current liabilities are being met in a
satisfactory manner. It was hoped to have allowed a reduc-
tion this year, but under the prevailing conditions there is a
likelihood of it again jumping towards the previous high re-
cord in assessment. The public utilities have been main-
tained in a satisfactory manner, the only serious breakdown
in over eight years' operation occurring last October, when
the power plant was shut down for three days. In order to
render service the public must either pay more for the ser-
vice or submit to an increase in the taxes. The rate for
1921 has not yet been decided on.
Bondholders of the town of Melville, Sask., will meet in
Toronto, Ont., on March 31, together with the mayor and
treasurer of the town, to consider some form of settlement
or adjustment for the town's financial position. The com-
mittee of the Humboldt bond dealers are reported to be much
dissatisfied with the interim report of the Local Government
Board of Saskatchewan, who propose to make use of deben-
ture trust funds for capital expenditure in the town of Hum-
boldt. They are now considering calling the Humboldt bond-
holders together to lay the matter before them and decide
on a future course of action. A meeting of the committee of
the Battleford bondholders was held on March 8, at which it
was decided to appoint a representative to attend the inquiry
of the Saskatchewan Local Government Board into the posi-
tion of Battleford. This inquiry will -open at Battleford on
March 21.
It has became apparent from these conditions that there
are too many municipalities which desire to discount their
future growth to relieve their present difliculties, just as a
too liberal discounting of this future led them into their
difficulties. The bondholders do not intend to lose anything,
and do not look with favor on the capitalization of interest
charges; they have, however, united with the municipalities
in a campaign to place the final responsibility upon the pro-
vince, against which the latter have taken a commendably
firm stand. A municipal debt must be met by the munici-
pality or not at all; while foreclosure is not practicable, the
whole value of the property and income is available to meet
the obligations.
THE MONETARY TIMES
Volume 66.
1' HAT business in the United States is rapidly contract-
iuR- is shown by the fact that even bank deposits are
decreasing'. This is something which may be expected in
Canada also, now that deflation is under way. The New
York Federal Reserve District's Review of Credit and Busi-
ness CoiK'.i'ions for February points out that commodity
prices, bank loans, and bank deposits continued to decline,
maintaining the process of readjustment which has been
g-oing on for several months. But the degrees of decline
which prices, loans, and deposits have registered from their
highest points are very unequal. These differences have
a direct bearing upon credit conditions in this district at
this time.
The changes which took place are as follows: —
Per cent.
Prices — Department of Labor index of wholesale prices
for the month of January showed a decline from
the high point reached in May, 1920, of 35
The bank's index of wholesale prices of twelve basic
commodities showed a decline on February 19
from the high point reached on May 17, 1920, of 48
Loans — Total loans of all federal reserve banks
showed on February 18 a decline from the high
point reached on October 15, 1920, of 18
Total loans of the federal reserve bank of New York
showed on February 18 a decline from the high
point reached on February 27, 1920, of 18
Total loans of 829 member banks in principal cities
throughout the country showed on February 11 a
decline from the high point reached on October
15, 1920, of 7
Total loans of 72 member banks in New York City
showed on February 11 a decline from the high
point reached on dctober 10, 1919, of 12
Dcp-:sits — Total deposits of 829 member banks through-
out the country showed on February 11 a decline
fi-om the high point reached on January 16, 1920,
of ". 7
Total deposits of 72 member banks in New York City
showed on February 11 a decline from the high
point reached on September 19, 1919 of 18
par value. Its field of business may be promising, but at the
same time the investor may well bear in mind that vLe
financial as well as the industrial field is strewn with the
wreckage of concerns which have failed, with loss to the
shareholders.
MORTGAGE DISCOUNT AND FINANCE, LIMITED
ANOTHER "opportunity" to become interested in financial
business is being offered by the R. T. Scott Co., Tor-
onto, in Mortgage Discount and Finance, Ltd., recently in-
corporated under the Ontario Companies Act. That the busi-
ness will be neither that of the ordinary loan company, nor
again merely the underwriting of security issues, is evident
from the emphasis laid upon loans secured by motor vehicles.
Several concerns are now operating in this field, which un-
questionably offers a real opportunity through the practice
of buying on the instalment plan; the finance company as-
sumes the agreement of sale, secured by the automobiles and
by insurance upon them, while the manufacturer or dealer
gets his money at once. An insurance agency is sometimes
operated as well, the volume of business being substantial. Of
these concerns, however, only a small portion are a success.
Some will, it is anticipated, be driven from the field.
The prospectus of Mortgage Discount and Finance, Ltd.,
while not clear as to the class of business to be conducted,
lays emphasis on the high profits in the financial field. "The
extent of profits," it is stated, "is limited only by the amount
of business the company will do. It is not necessary to dwell
on this point, as the profits of financial institutions are a
matter of record, such companies earning from twenty to
fifty per cent, and higher." The company is capitalized at
$2,000,000, half preference and half common, both of $10
FACILITATING AGENCY BUSINESS
ANEW system of securing inspection reports is being tried
out by the Great-West Life Insurance Co., the object
being greater promptness in the issuing of policies. The Bul-
letin of the company describes the experiment as follows: —
"The new system is, that the. agents themselves, when
they have an applicant examined, requisition the report from
the inspection agency. The old system was, that the branch
office requisitioned a report when they received the applica-
tion. It will be seen that the time between the date of the
examination and the date the application is received at
branch office will be saved. In analyzing a few hundred
cases we found this time to vary from two days to three
weeks.
"This time, however, does not account for all of the
delay. In many, and in fact in most, delayed cases, we find
that the agent did not give sufficient information ton the
application to allow the branch oftice to fully complete the
requisition slip. So this condition will also be overcome by
the agent having the slip to fill out. He can then see exactly
what information is needed and can from his own knowledge,
completely fill it out or can immediately get the informa-
tion from the applicant. Cei'tain agents have been asked
to make this trial. Should it prove successful, all agents
writing a sufficient volume of business to make it worth
while, will be given the privilege."
After the drop from the abnormal year 1918, fire losses
have shown an increase rather than a decline. Until
property values decrease there is not much prospect of a
reduction.
Germany has no money for indemnity, but has plenty
for horse races, says a newspaper, commenting on the fact
that 5,000,000 marks were wagered on the Berlin races on
March 7. But even in Canada we have municipalities which
boast theatres, motor cars and horse races as well, but
which do not meet their obligations.
Municipal bond sales in February were $9,660,503, com-
pared with $5,754,035 in January and with $3,718,405 in
February, 1920. The number of issues being ofl'ered in the
hope of higher prices, and the issues made through local
piessure for the relief of unemployment, will be a bearish
factor in the bond market for some time to come.
A deficit of $4.53,495 for the fiscal year 1919-1920 is
shown in the annual report of the University of Toronto.
Accordin- to the figures submitted, a total of $1,509,311 was
spent on salaries and maintenance. The university's assets
are shown to be $7,526,055, of which nearly $6,000,000 is
represented by land and buildings and contents. The total
revenue of the university was $1,068,519, comprising statutory
grants from the province amounting to $527,400, tuition fees
$382,559 and smaller items. Fees paid by students increased
by $146,657.
A DESERTER FROM THE CAUSE
While an Irishman was gazing in the window of a Tor-
onto book store, the following sign caught his eye: "Dicken's
works all this week for only $4."
"The divil he does," exclaimed Pat in disgust. "The
dirty scab."
March 11, 1921
THE MONETARY TIMES
Keep Yourself Informed
/^UR Monthly Commercial
^"^ Letter reviews the fin-
ancial and trade conditions
throughout Canada, with
which our widespread branch
system enables us to keep in
close touch.
We shall be glad to mail this to
you regularly, ■without charge,
upon request.
THE CANADIAN BANK
OF COMMERCE
Head Office
Capital Paid-up
Reserve Fund
$15,000,000
$15,000,000
Business Accounts
The complete banking facilities
provided at all our branches enable
this Bank to give Business Ac-
counts the care and attention they
need and deserve.
The Merchant and the Manufac-
turer will find the services rendered
by this Bank of the greatest assist-
ance in conducting their business.
IMPEKIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
Industry
of the Soil
""PHE resources of this Bank are an
essential element in the Dominion's
fundamental industry — exploitation of
the soil.
For 55 years we have been promoting the
interests of agriculturists.
To-day, our co-operation is being utilized
from coast to coast in an endeavor to
increase the output of the fields.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE ; TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at .
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET, E.C.2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
Frank L. Ckau:, formerly associated with the United
Financial Corporation, Limited, has joined the bond depart-
ment of MacKay and MacKay, of Toronto.
Col. J. A. Cooper, director of the Canadian government
office at New York, is to retire from the government service
in the near future to become a partner in the firm of Smith,
Denne and Moore, advertising agents, Toronto.
O. B. Shortly, president of the Life Underwriters as-
sociation of Canada, has left Canada in company with J. E.
Kavanagh, third vice-president of the Metropolitan Life in-
surance Company, for a trip to Southern Europe. He will
be away about three months.
Albert E. Gillespie has been appointed superintendent
of agents for Canada of the Preferred Accident Insurance
Company of New York, with head quarters in Toronto. Mr.
Gillespie was formerly connected with the Travellers Insur-
ance Company of Hartford, in the capacity of inspector of
agents.
W. H. Maba has been elected a member of the Toronto
Stock Exchange. Mr. Mara is organizing a new firm, to be
called Mara, McCai-thy, Limited, his partner being Leigh
McCarthy, for some time connected with the Royal Bank
of Canada in Toronto. Recently, Mr. Mara's business con-
nections have been with the firm of Michie, Mara and Com-
pany, Montreal.
H. A. Richardson, general manager of the Bank of
Nova Scotia, and vice-president of the Canadian Bankers'
Association, has just returned from a trip to Jamaica and
Cuba. Mr. Richardson's impression was that, while Jamaica,
in common with Canada and the United States, is finding
trade rather quiet and long stocks slow of realization, con-
ditions there are fundamentally sound, and more active busi-
ness will shortly emerge.
Alex. Johnston, former deputy minister of marine for
Canada, who left the department to take a position in the
British Empire Steel Corporation, has decided to return to
his old position. Mr. Johnston left the department a couple
of months ago. Since he resigned, the work of deputy
minister has been carried on by H. E. A. Hawken as acting
deputy minister. When Mr. Johnston resumes the deputy
minister's duties Mr. Hawken will return to his former posi-
tion of assistant deputy minister.
Hon. W. E. Knowles has resigned as provincial secre-
tary and minister of telephones for Saskatchewan to re-
sume his law practice. The reason advanced by Mr. Knowles
for relinquishing- his portfolios is that over two years' ex-
perience has convinced him that he cannot do justice to
both the government and his law practise in Moose Jaw,
and that he owes first consideration to his practise, "which
must not be neglected but maintained as my permanent
means of support after the emolument's of precarious public
life have ceased." Mr. Knowles is senior member of the
legal firm of Knowles, Hare and Benson, Moose Jaw. He
was elected to the House of Commons for West Assiniboia
in 1905 and re-elected for Moose Jaw in 1908 and 1911. He
joined Premier Martin's government on May 16, 1918, as
provincial secretary, and on February 1.5, 1919. was given
the additional portfolio of telephones.
The tow-nship of Coleman has lost its appeal in the case
of the concentrators owned by the Bailey Silver Mines and
the Dominion Reduction Co., which the municipality sought
to assess for business tax. On the ground that the plants
were treating customers' ore, and not the product of their
own properties, the township tried to collect business tax on
assessments of $45,000 and $60,000.
KINGSTON. ONT., HAS CLEARING HOUSE
A clearing house for the seven .banks of Kingston, Ont.,
opened on March 1. Two rooms in the basement of the City
Building, in the southern section, with entrance from Ontario
Street, have been fitted up for this purpose. The new organi-
zation, which will be known as the "Kingston Bankers' Clear-
ing House," has elected the following bankers as its officers:
Chairman, H. A. Tofield; vice-chairman, R. T. Brymner; secre-
tary-treasurer, George Brownlee; manager, W. B. Browne.
Executive — Philip Dumoulin, J. F. Rowland and A. N. Lyster.
♦> .,,
tt I
Bank of Nova Scotia's New Premises at 263 St. James
Street, Montreal
AETNA LIFE INSURANCE CO.
A year of marked expansion is reflected in the annual
statement of the Aetna Life Insurance Co., Hartford, Conn.,
for 1920. The premium income amounted to $54,757,852,
being an increase of $9,769,496 over the previous year. New
life insurance issued in 1920 amounted to $531,675,514, and
the insurance in force now amounts to $1,155,589,341, being
an increase of $262,913,031 over 1919.
The assets of the company at the end of last year
totalled $177,502,366, an increase of $14,404,653, while the
surplus to policyholders increased $1,572,144 to $19,027,416.
Since the organization of the company in 1850. $395,347,390
has been paid to policyholders.
The Aetna is well-known in Canada in view of the sub-
stantial business which it transacts here. The 1920 state-
ment of Canadian business has not yet been issued, but there
is reason to believe that the usual progress has been made.
The chief agent for Canada is E. J. Christmas, and the head
office is at Montreal.
T. S. G. Pepler and Co., Toronto, announce that L.
Soliague has retired from the firm. The business will be
carried on as usual in government, municipal and corpora-
tion bonds.
March 11, 1921
T H 2 MONETARY TIMES
giiiiijiiiiiiiiiuiiiiiiiiiiuiiiiiiiiiiiiiiiiiuiiiiuninimiiniiiiitjiiiiiiiiiiiiiniiijjiinnmiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuimiiiiiiuiiiiiiiiiiuiiiiii^'
I The Sterling Bank I
I OF CANADA |
IfiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimimiiiiiiiiiiiiuiiiiimiiiiiiiiiiiiiiriiiniiiiiiDiiiimi ~
Among other Service (eatures. our Bond Department
has proved of value to Sterling Bank clients. It is
in charge of experienced executives, who can recom-
mend at any time a splendid selection of high-grade
bonds— and transact any bond business speedily and
efficiently.
Head Office
KING AND BAY STREETS. TORONTO
LONDON JOINT CITY & MIDLAND
BANK LIMITED
The Right Hon. R. McKENNA
E»q.
Subscribed Capital
j Paid-up Capital
t Reserve Fund .
' Deposits !j.'.n» 30th. 1920\
HEAD OFHCE:
. £38,096,363
1 0.S40, 1 1 2
10,840,112
■ 367,667,322
THREJ^ONEEDLE STREET.
OVEItSEAS UAKH :
• BROAD STREET. LONDON. LC Z
The NationsJ Bank of Scotland
Limited
Incorporated by Royal Charter and Act of Parliament. Hstarlisiieu 1825
Capital Subscribed ;{:5.000,000 825,000.000
Paid up 1,100,000 5,500,000
Uncalled .. 3.900,000 19„5O0.00C)
Reserve Fund 1 .000, (Hill ,S,000 ood
Head Office - EDINBURGH
WILLIAM CARNKGIE, General MjnaKer, C.KCIKOE A, HL'NU-K, Sec.
LONr>0.\ OFFlCE-37 NICHOLAS LANK, LO.MUARD ST.. l-.C 4
T. C. RIDDBLL, DL'GALD SMITH.
Manager Assistant ,Manai;cr
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London, arc retired
on terms which will be furnished on application.
A Newspaper Devoted to
Municipal Bonds
TTHERE is published in N'ew York City a daily
and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond offerings.
Write for free specimen copies
THE BOND BUYER
67 Pearl Street New York, N.Y.
dommonwealtb Banh of Hustialia
All classes of GENERAL AND SAVINGS BANK business are trans-
acted in all the principal cities and towns of Australia. Rabaul and
London.
JAS. KELL.
Deputy Gove
DENISON MILLER,
Governor
ESTABUSHEX) 1879
Alloway & Champion
Bankers and Brokers
Members of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and add on commission.
Winnipeg, Montreal, Toronto and New York Exchange*
Executor Under Will
The Company acts in this capacity,
and the management or distribution
of your Estate will not be a side-
issue with us. Such work is our
specialty, and we shall not be
gaining our experience in handling
your Estate. The Company's Offi-
cers have handled many such
Estates, and will bring to bear their
wide experience in caring for yours.
THE BANKERS
TRVST0OMB\NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Bnilding in each city
14
THE MONETARY TIMES
Volume 66.
The Unemployment Situation in Canada
Problem is a Seasonable One, as Industries Absorb All
Available Help in Summer— Winter Homesteading as a
Solution— City Congestion is One of Greatest Difficulties
By E. L. CHICANOT
ONE of the most serious problems Canada has to face in
her economic development, and one which in a new and
expanding country is fraught with the most tremendous
and signifigant .import is that of periodically reccuring un-
employment. Each winter, as the country achieves greater
expansion industrially and commercially, the flood of un-
employed in cities and industrial centres seems to increase
in volume and the situation become more acute and ag-
gravated. In the past two years the state of affairs has
been more persistently thrust upon the attention of the
public by reason of the substantial proportion of ex-service
men in the ranks of the unemployed, men who due to the
unsettled state of affairs existing since their demobilization
have not achieved complete re-establishment by securing
regular employment, or being the latest hands taken on are
the first let out. Particularly serious have been conditions
dui'ing the present winter where numbers running into the
thousands in the larger centres were forced out -of employ-
ment by the industrial slump which overtook the country.
Help in practically every part of the Dominion had to be
extended by government and civic bodies, a great many
becoming absolutely destitute and wholly dependent.
Unemployment was anticipated by the Canadian gov-
ernment as an inevitable aftermath of the great war due to
the disturbance of economic conditions and the settling back
in civil life of a huge army approximating a quarter of a
million men. It took some steps accordingly to meet this
state. It created the Government Employment Bureau, one
of the most admirable and harmoniously working systems
devised to/ meet labor conditions, and which in the first
fifteen months of its existence placed more than six hundred
thousand persons in employment. More than thirty thousand
of these were men transported from one part of the Do-
minion to another, who could not be placed in employment
in their own locality of residence. The government also
created a certain amount of work to relieve the situation,
the amount expended aggregating several million dollars.
In this it had the co-operation of provincial and municipal
authorities working in the same direction, municipalities
being repaid one-third of the money so disbursed.
That government and municipal assistance has in some
wise relieved the situation or aleviated a threatened condi-
tion seems to be evident in the fact that in spite of the dis-
turbed state of economic affairs in Canada since the termina-
tion of the war, and the problem of rehabilitating a huge
army, unemployment in the Dominion in December, 1920, was
stated by the Minister of Labor to be less than at the same
(late in 1914. Furthermore every man desiring work during
the summer of 1920 was accommodated on the same authority.
Difficulty is Seasonal 1
This question of unemployment, which will be found to
be purely seasonal, occurring solely in the winter months,
is one of most serious economic import, fundamentally touch-
ing the national life of the Dominion. On the one hand
Canada is puttmg forth every effort to attract to her shores
new blood to develop her wealth of barely tapped resources,
whilst on the other there is an apparent failure to find ade-
quate employment for those within her borders. It is a prob-
lem which calls for the utmost thought and investigation on
the part of Dominion leaders as its bearing on immigration
and colonization and the effect it is liable to have in the
tide to our shores is difficult to estimate. Already there
have been demands from labor organizations to shut the
doors at the ports of entry, and steps have been taken in
view of the existing situation this winter to ensure that
every newcomer of the artisan or laborer class is possessed
of $250 to guarantee his subsistence over the winter months.
There can be no gainsaying the fact that unemployment
in Canada becomes a problem only in the winter. Whereas in
1920 the percentage of unemployed among trades unions in
August was but something over two per cent., in December
it was ten. This of course only covers the men who follow
trades covered by unions. Of that great army of casuals
and transients no records can be kept. But it is safe to say
that in the month of August no able-bodied man willing to
work need have been out of a job. The situation in Decem-
ber might be judged by the bread line in some of our cities.
There is no need of an able-bodied man being out of
employment in Canada during the summer months when
every province of the Dominion offers such a variety of out-
of-door occupations. Every summer brings cries of men
wanted for haying or harvest, of men wanted for railway
construction, and other jobs of the open which appeal to
that vast aggregation of casuals who have for profession
but the strength and muscle of body. Judged by professions
and skilled trades, wages for this kind of work are often
high, a very fair recompense for the amount of labor ex-
pended. Expenses in this kind of life are reduced to a
minimum, leaving opportunity for extensive savings. As a
contrast we find our cities and industrial centres in the
winter time overcrowded with a list of unemployed, many of
whom become destitute before the season is over and public
charges.
The eminently desirable condition in Canada, and the
only one which would apparently solve the situation, would
be a just balance of summer and winter seasonal occupa-
tions. On the face of it it seems very difficult to arrive at
Canada being so largely an agricultural country and one
where the exploitation of natural wealth occupies so large
a portion of the casual labor class. The severity of the
winter months precludes these to a great extent, and there
is a consequent .seasonal decline with little in the labor line
to correspond. There are however a few purely winter oc-
cupations which can accommodate a part of the men laid
aside after other work is ended. The question is how ex-
tensively are these taken advantage of, and whether a more
equitable balance is possible of achievement, thus bringing
about a greater equality of employment between winter and
summer and keeping more casual hands occupied the year
round.
Plenty of Work in Summer
The amount of work the various phases of summer
activity entail can absorb apparently any amount of men.
The demand increases yearly and there is always a dearth
in some of the occupations which do not call for skill or
training. The quick assimilation of the greater part of the
Canadian army after demobilization was partly due to its
being accomplished in the months when work in the open
air was possible. Not only men who had followed this kind
of work took it up again readily but many skilled and pro-
fessional workers who saw no immediate openings in their
respective lines were temporarily absorbed by this class of
work, prefering to be absorbing their energies whilst waiting.
In the western provinces especially numerous industrial and
professional workers clerks, bookkeepers, accountants and
others engaged in agricultural work, went to the woods, or
followed railroad construction for the summer months. The
scope of this work is ever increasing as summers come round,
and could the country be assured that the total volume of
March 11, 1921
THE MONETARY TIMES
Bureau of
^\ Canadian
Information
T^HE Canadian Pa-
cific Railway,
through its Bureau
of Canadian Infor-
mation, will furnish
you with the latest reliable information on
every phase of industrial and agricultural
development in Canada. !n the Reference Li-
braries maintained at Chicago, New York and
Montreal are complete data on natural resources,
climate, labor, transportation, business openings,
etc., in Canada. Additional data is constantly
being added.
No charge or obligation attaches to this service.
Business organizations are invited to make use
of it.
Canadian Pacific Railway
Department of Colonization and Development
165 E. Ontario St.
Chicago
335 Windsor Statio
Montreal
1270 Broadway
New Yorki
rflOMEBANKcFCANADA
SAVE THE SMALL CHANGE
A little saved each day will, without
stint, amount to a dollar at the end
of the week, and a dollar should mean
a deposit in the savings account.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto g.s
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
head office. weyburn. saskatchewan
Branches in Saskatchewan at
Weyburn. Yellow Grass, McTaggart, Halbrite, Midale
Gri85n, Colgate, Pangman, Radville, Assiniboia. Benson,
Verwood, Readlyn, Tribune, Expanse, Mossbank, Vantage,
Goodwater. Darmody. Stoughton, Osage, Creelman, Lew-
van. Kroude and Ardill.
A GKNKRAL H.ANKING BUSINESS TRANSACTED
H. O. POWELL. General Manager
TH€ MCRCHANTS BANK
Head Office : Montreal. OF CANADA
Established 1864.
Capital Paid-up, $10,029,622 Reserve Fund and Undivided Profits, $9,475,585
Total Deposits (30th October, 1920) - Over $170,000,000
Total Assets (30lh October, 1920) - Over $209,000,000
Board of Director* :
Sir F. OrrOrk-Lewis, Bart.
Hon. C. C. Bailantyne
F. Howard Wilson
SIR H. MONTAGU ALLAN
Farouhar Robertson
Geo. L. Cains
Alfred B. Kvans
Vice-President
Thomas Ahearn
Lt.-Col. J. R. MOODIE
Hon. lorne C. Webster
A. J. DAWES
E. W. Kneeland
Gordon M. McGregor
General Manager D. C. Macarow
Supt. of Branches and Chief Inspector : T. E. Merrett
General Supervisor - - - W. A. Meldklm
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramsay and C. J. Crookall, Agems
London, England, Oiiice, 53 Cornhill : J. B. Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
THE MONETARY TIMES
Volume 66.
immigration, oi- the major portion of it, would go on the
land there would be no need of taking measures to stem the
tide, except of course, to bar undesirables.
Just how far is winter unemployment justified by cir-
cumstances? In the western provinces especially, but in
the newer expanding areas of the older provinces also, there
is a substantial aggregation of men, mostly single and unat-
tached, casuals and transients who work through the open
season, and with the advent of the frost and snow and the
cessation of their work, rest on their oars for the winter
months. They may be broncho-busters, hay or harvest help,
railroad construction workers, or followers of a dozen other
pursuits which keep a man out in God's open air. They are
purely open air workers and have no intentions of working
through the winter, regarding that season as one of legitimate
holiday. It of course goes without saying that they have
made enough money during the working season to have put
by a substantial amount, enough to see them over the frost-
bound months. Many of them kill two birds with one stone
and put in their time on homesteads they have filed on ful-
filling their occupational duties. They live at a minimum
of expense free of house rent and the other exactions of
a city. Others put in their time as hired help upon farms
doing the few odd jobs which accompany farm work in win-
ter for a comfortable lodging and tlieir food. They are
successfully and economically tided over the winter and with
the recurrence of spring are able to make a fresh commence-
ment with a little harbored capital to be further increased
by the next winter.
Unemployed Crowd in Cities
To these men the winter presents no great problem.
But the winter months must be spent in the country. To
flock into the cities spells disaster all round. Expenses a're
higher, temptations to spend greater and more numerous,
and before a man knows where he is, his little store is gone,
he is an applicant for employment in which respect the city
has sufficient to do to accommodate its own industrial work-
ers, and he becomes one of the unemployed dependent upon
the city which in reality Qwes him nothing.
An analysis of unemployment in Canadian cities will
show that a goodly percentage comes from outlying districts,
sometimes widespread and distant. Work has ceased and too
many men are inclined to come to the cities to spend what
they have accumulated during the summer, or finding out-
door working conditions distasteful with the coming of win-
ter a^nd monotonous after the long summer's toil come in to
the greater comfort and companionship of the more populated
centres. In the lists of unemployed this winter cases came
to light of men leaving remunerative labor in the bush for
the city in the hope of finding easier work, to eventually add
to the ranks of the dependent unemployed when disappointed.
And at times during the winter months, when city unem-
ployment was acutest, demands for labors in the unattrac-
tive out-of-doors went unheeded, and employers were un-
satisfied.
Winter unemployment in Canada then resolves itself into
caring for the industrial out-of-works belonging to the cities,
a condition which is more or less inevitable, depending on
industria-l conditions, and only to be partially guarded against
by the woi-kers themselves who, for the main part find it
impossible to save; and keeping those casuals and transients,
who have been engaged at work in the country, away from
the larger centres to which the tide invariably tends as the
winter closes in. In solving the problem city authorities
might go farther in a.n attempt to distribute their own un-
employed in outlying districts where they might be at least
given the opportunity to earn their board. The unemploy-
ment bureau is at all times cognizant of opportunities away
from the cities and might assist in seeing that a portion of
the unemployed are sent out to these places and relieve the
city of that much of its burden.
The land is Canada's eternal salvation and more might
be done in this direction in the winter time. Most fanners
are glad of an extra inexpensive hand about their places in
the winter time to do odd jobs, and do not miss the food that
an e.xtra mouth consumes. Some system of co-operation
might be arranged with the farming municipalities to bring
a-bout such a beneficial distribution.
Cannot be Fastidious
An indispensable factor in all solutions is necessarily
the earnest and accommodating attitude of the out-of-work.
He cannot be fastidious or independent but realize that he
is for the time being the victim of circumstances and in no
position to choose, but should be ready to take temporarily
what offers. He must of himself be anxious to relieve the
public of the burden of his dependence or else be compelled
to do so.
It is a a terrible reflection upon Canada which boasts of
her tremendous wealth and vastness of resources, that she
should have a pressing employment problem. It reacts upon
the nation in the worst wa.y and other countries are not slow
to point out the fact as an unmistakable sign of economic
instability. Immigrants are apt to be deflected when they
see that Canada is unable to employ those citizens she al-
ready has. Canada is unfortunate in not possessing sufficient
winter occupation to balance that of the summer, but suffi-
cient is not being made of her winter pursuits nor to en-
courage winter labor away from the industrial centres which
are most apt to experience a seasonal decline at tha-t time.
It is the duty of the government and the public in general
to do all in their power to relieve and solve the situation and
banish this reflection from our great Dominion which not
only possesses such vast potential wealth, but is producing
yearly in ever increasing proportion a- wealth which makes
her citizens, per capita, among the richest in the world.
BUYERS ARE STILL CAREFUL
"The week has developed little variation in business
conditions as last outlined," say R. G. Dun and Co. in their
March 5 review of business in the Montreal district. "The
markedly mild spell has caused some break up of country
roads, but no falling off is noted in district collections, and
the failure list is comparatively light. There has been a very
fair attendance at the wholesale millinery openings this week,
and general satisfaction is expressed with the volume of
sales. Dry goods men report that the mild weather has oc-
casioned many calls for the quick shipments of prints and
other spring lines. Orders are still marked by careful buying,
but a very fair aggregate of business is being booked. The
cotton mills are making rather freer deliveries, but some
shortage still exists of sundry staple lines of cottons. Boot
and shoe manufacturers are rather disappointed at the an-
nouncement that further negotiations for the placing of an
order for Italian ai-my shoes have been dropped, the Italian
government having decided to award the business to home
manufacturers. Tanners are not pressed with orders, but
prices are fairly steady. In the grocery line no new features
are presented. As in other lines, there is some disposition to
look for lower values, but the volmne of business is about
nonnal."
Regarding the Toronto district, the following is said:
"The feature of the week was the presence of western buyers
in the wholesale district, where they are credited with having
made some ver-y fair-sized purchases. Complaint regarding
the' inability of Canadian mills to supply the demands of job-
bers for pillow cottons and ginghams is frequently heai-d.
Demand for these goods is well maintained. Some houses
experienced for a short time an increased call for woollens,
but this apparently was only a temporary rally. Rugs and
draperies are slow-moving lines. Ladies' dresses, skirts, etc.,
sell well, and many plants are working at high pressure to
meet a welcome rush. A more careful scrutiny of credits
than oi'dinary is in vogue amongst shippers in this line, but
a fair risk gets all the goods required. Millinery Jimis are
busy, and out-of-town visitors patronize the showrooms in
ever-increasing numbers.
March 11. 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 18171
PAID UP CAPITAL - - -MM- $ 24,655,500.00
RESERVE FUND ----- _\93^T°=^A 16,750,000.00
RESERVE LIABILITY OF PROPRIETORS - vP^l^^^^^^l ------ 24,655,000.00
y^^^^^^^Bj^ ----- $ 66,061,000.00
AGGREGATE ASSETS 30th SEPT., 1920 ^SSSS^jj^Z^' $362,338,975.00
Sir JOH.\' RUSSELL FRENCH, K BE . General Manager
357 BRANCHES .ind AGBN'CIES in the Australian States. New Zealand. Fiji. Papua (New Guinea), and London. The Bank transacts every description
of Australasian Banking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2.
Agents: BANK OF .MONTREAL. ROYAL BANK OF CANADA.
c.
s.
GUNN
&
COMPANY
REAL
ESTATE, INSURANCE,
RENTAL AGENTS
805 Union
Trust Bu
ilding
WINNIPEG, MAN.
Members of Winnipeg Real Estate
Exchang
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Gborcb Edwards, p. C. a. Arthur H. Edwards. F.C.A.
H. Percival Edwards W. Pomeroy Morgan W. HbrdertThomi'Son
A. Geoffrey Edwards Oswald N. Edwai. ds Charles E. White
T. J. .Macnamaha T. p. Gkcgie J. L. Atkinson
K. A. Ma
W. A. Lo
Joii
■M. Ed
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO ..
CALGARY ,
VANCOUVER
WINNMPKC
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HALIFAX, N.S. ST. JOHN, N.B.
LONDON, ENG. PARIS, FRANCE
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
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Providing for Education
In times of prosperity make certain that tlie education
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46 KING STREET WEST, TORONTO
Vice-Pres.
JOHN J. GIBSON. Managing Dir
THE
TOROTSTOGEiSERAOfeUSTS
CORPORATIOiS
DIVIDEND No. 99
Notice IS hereby given that a dividend of Three
Per Cent. (3'V) has been declared upon the Paid-up
Capital Stock of this Corporation for the quarter
ending March 31st, 1921, being at the rate of
TWELVE PER CENT. PER ANNUM,
and that the same will be payable on and after
Friday, the first day of April, 1921.
The Transfer Books of the Corporation will be
closed from Tuesday, the 15th day of March, until
Thursday, the .31st day of March, 1921. both days
inclusive.
By Order of the Board of Directors.
A. D. LANGMUIU.
General Manager.
Toronto, March 1st, 1921.
THE MONETARY TIMES
Volume 66.
Manitoba May Build Railway to the North
Plan Suggested in Annual Report of Railway Commissioner — Position of
Telephone System Set Forth — Present Session of Legislature Discusses Import-
ant Measures — Sixteen Applications Under Sale of Shares Act Were Refused
FOLLOWING the election last fall, in which the Norris
g-overnment obtained only 21 out of the 55 seats, but
was still the strongest of the four groups in the legislature,
the 1921 session in Manitoba opened on February 10 with
the outlook very uncertain. The speech from the Throne
referred to the bountiful harvest last year, and to the steps
being taken to encourage farming. A Manitoba Joint Council
of Industry was established in May, under legislation of
the 1920 session, and the opinion was expressed that the plan
was successful. A beginning has been made under the
Electric Power Transmission Act, in the construction of the
transmission line to Portage 'la Prairie. Mining progress
in the north had also been notable, and brought up the ques-
tion of ti-ansportation, while the first open hearth steel
furnace in the province had been started in 1920. Refer-
ence was also made to the effort to prevent the increase in
freight rates.
Lieutenant-Governor Sir James Aikins also said: —
"During the recess repi'esentations through a deputa-
tion were submitted by my government to the government
of Canada for securing the transfer of the natural resources
of the province to the provincial jurisdiction. The memorial
presented on that occasion, setting forth the considerations
in support of the justice of the claim of the pi'ovince to the
ownership and control of the public lands, timber, minerals
and all the other natui'al resources within the boundaries
of the province, together with the correspondence between
the government of this province and the government of
Canada in regard to this demand made for the correction of
what my government considers to h^ve been an injustice
done to Manitoba for half a century, will be laid before you.
"During the past year my government has been able to
meet to a large degree the demands of the municipalities
for funds to carry out the plans formulated to relieve the
shortage of dwelling houses. It is apparent that there is
still need for further loans, as there is comparatively little
money available from other sources.
"The Manitoba Farms Loans Association has con-
tinued to render very valuable service to the farmers of the
province during a trying time. The Rural Credits System
has also had another successful and useful year and has
been of much advantage to the agricultural community.
Funds for the carrying on of the work of the rural credits
■societies were provided directly by the province for the first
time since the system was inaugurated. The system of
provincial savings offices, authorized at the last session of
this legislature, for the purpose of financing the rural credits
societies and other purposes, has met with satisfactory suc-
cess."
Projected Measures
An exceptionally large number of building restriction
proposals are being brought before the legislature this year
for consideration. Legislation authorizing the g-uarantee by
the province of bank advances to municipalities which are
temporarily financially embarrassed will be put before the
House at this session of the legislature, it was announced
on February 17. The enactment will go through as an
amendment to the Treasury Act, and was requested by
several municipalities.
A bill providing for a Bulk Sales Act will be placed be-
fore the legislature this session in accordance with the re-
commendations made by the commissioners on Uniformity of
Laws for Canada, Hon. Thomas H. Johnson, attorney-gen-
eral, stated. The act gives protection to creditors in order
to prevent them from being defrauded by debtors disposing
of their stocks. All provinces of the Dominion have laws
along this line, but the purpose is to make them uniform.
Abolition of the Public Utilities Commission, broadening
of the Workmen's Compensation Act, limiting of work to
eight hours per day and other legislative enactments aimed
to better the status of the worker, are among the more
important matters urged in the annual labor legislative pro-
gram placed before the provincial cabinet on January 29
by the Winnipeg Trades and Labor Council.
A statement showing special warrants issued during
1920 was tabled by Hon. Edward Brown, provincial treas-
urer, showing that the sum of $276,900 had been appro-
priated for special warrants. Four items made up the bulk
of the amount. Mr. Brown said, $125,000 was spent to pre-
vent the grasshopper plague from spreading; $20,000 added
appropriation to the Mother's Allowance board ; $25,000 for
relief in fire swept districts and $54,000 to the administra-
tion of justice. The remainder was made up from various
government departments.
Insurance and Fire Prevention
The report on insurance and fire protection was pre-
sented. It stated that the premiums collected during the
year amounted to $11,656,309. Losses paid were $3,501,506.
There are 31 licensed insurance companies doing business in
the province, and 135 registered companies are doing busi-
ness under the Manitoba Insurance Act. The very heavy
increase in the premium income, it was stated, would offset
much of the increase in the amount of the losses which had
been paid. The opinion that some sort of qualification should
be required from insurance agents before a certificate of
authority is issued to them is gaining ground, and it is an-
ticipated that it will not be long before strong representa-
tions will be made to the legislature that the grounds for
the cancellation or refusal of an agent's certificate of
authority be considerably increased.
There were 1,739 fires. The total loss is estimated at
$2,276,261. The increase in number is 136, and the increase
in loss $641,399. In Winnipeg there were 893 fires, and in
Brandon 130. The loss ratio per capita of the province,
based on an estimated population of 613,000, amounts to
$3,713, against $2,667 for the previous year. There were 24
deaths from fires. The report stated that 75 per cent, of
the fires were due to "sheer carelessness or ignorance." Plans
are under consideration for the creation of a greater interest
in fii'e prevention.
Manitoba has in its provincial treasury, in cash and
securities, 23 per cent, o' her gross debt, the provincial
treasurer told the legislature on February 22. He said this
was unequalled by any other province or city in the Do-
minion. He read to the House a list of the securities as
follow^: Dominion bonds, $781,000; Manitoba bonds. $1,-
776,000; municipal, $3,143,000; school, $840,000; farm loans,
bonds and shares, $3,650,000; rural credit societies' bonds,
$14,000; and in actual cash, the total of unexpended capital
balances, $2,119,000— a total of $12,300,000. The gross
capital debt of Manitoba is, he said, $51,000,000. When the
present government came into power the gross debt was
$27,000,000.
Public Utilities Report
The past year witnessed the largest number of applica-
tions under the Sale of Shares Act since this act was put
into force, according to the ninth annual report of the Pulslic
Utilities commission presented to the legislature by Hon.
Thos. H. Johnson. P. A. Macdonald, commissioner, states
that the administration of this act has become an important
feature in the activities of the commission. Last year was
March 11. 1921
THE MONETARY TIMES
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RICHMOND AND VICTORIA STREETS
Winnipeg TORONTO London, Eng.
The Permanent Executor
A MAN hy becoming an executor doc;
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Executor Administrator Assignee Trustee
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B0.4KD OF niKEt'TOUS:
W. T. MOLL4RU. President G. H. BARR. K.C.. Vice-President
H.E.Sampson K.C. A. L. Gordon. K.C. J. A M. Patrick. K.C.
David Low, M.D W. H. Uuncan J. A. McBride
Chas. WillouRhby William Wilson
E. E. .MLkPHY. General Manager
Official Administrator lor the JudicinI District oi Weyburn
(Trustee under Bankruptcy Act)
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
The Security
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Receiver
Stock and Bom
Brokers,
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General Financi
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W. H. CCNN'ACHER
Pres. and Managing Director |
20
THE MONETARY TIMES
Volume 66
notable for a complete absence of complaints against the
workings of the act.
Tho amendment to the Sale of Shares Act, governing
mining companies, resulted in the administration of the act
becoming smoother. The amendment establishes the status
of promotion shares and provides that before this class of
shares can be offered, the company must file proof with the
commissioner that development work so far carried out has
demonstrated that there is a reasonable prospect of a re-
turn to the investor. Upon this being established, a special
certificate will be granted for such class of shares. The
commissioner exercised stringent measures to prevent the
offering of foreign schemes, particularly oil speculations,
reaching the public, and commends the spirit shown by the
local press in co-operating in this desirable object. For^the
year ending 30th November, 1920, 73 formal applications
were received under the Sale of Shares Act; 16 applications
were refused.
The Greater Winnipeg Water District board of equaliza-
tion was appointed by the commission and the assessment
for the district made by the board for 1920 was $173,734,838.
The commission also suggested to the water board the im-
portance of prompt action to prevent damage to the aque-
duct through the action of alkali in the soil.
The number of public utilities under the commission's
jurisdiction may be grouped as follows: Four electric
railways, 13 water, 36 electric light and power, 2 gas, 17
telephones, 38 telephones, privately owned lines operated
for mutual accommodation; 9 acetylene gas, 125 government
grain elevators.
The Railway Situation
The government has in view the development of the
mineral belt of the northern portion of the province already
explored, it is stated in the report of the railway commis-
sioner, Premier Norris, which was submitted on Februai-y
18. It has under consideration certain proposals regarding
the construction of a railway to serve the district referred
to. A survey of the road is now in progress, starting at
Mile 7 from The Pas on the Hudson Bay line and then on
west to Lake Athapapaskow, 53 miles, and from that point
along the north side of the lake to the Flin Flon mining
area, a total of 85 miles. A four-mile spur line from the
Hudson Bay line has already been built along the proposed
route.
With reference to the Hudson Bay Railway, the com-
missioner states that assurances received from the Dominion
would indicate the early completion of this line. When this
stage is arrived at the line will doubtless be operated by
the federal government as a portion of the Canadian Na-
tional system. The total expenditure in connection with
the railway, including that for 1920, approximately $220,000,
is $21,016,445.
Report on Telephones
Although there was a surplus of revenue of $240,964
over expenditures on the Manitoba government telephones
for the year ending November 30, 1920, interest charges for
the year amounting to $633,653 caused a loss of $392,688 on
the system for the yeai-, according to the thirteenth annual
report of the Manitoba government telephones tabled in the
legislature on February 21. Total revenue amounted to
$2,586,966, while total expenditures amounted to $2,345,184.
Exchange tolls collected during the year totalled $1,948,824,
while operating expenses amounted to $1,191,441. Accord-
ing to the report, the loss was provided by surplus moneys
which accrued prior to 1913, amounting to $184,312, and
which were advanced by the provincial treasurer. Of this
amount, $101,570 has been retained for interest which has
accrued, but which is not yet due.
The assets, estimated at $18,503,623, include the plant,
which is valued at $13,217,288, investment securities to the
value of $2,128,000 and intangible capital to the value of
$1,138,568. Included in the liabilities are the government's
investment of $15,844,003 and replacement reserves amount-
ing to $2,373,975. Included in the tabulated statement of
the year's expenditures are the sums of $62,833 for total
general expenses, $229,226 for total commercial expenses,
$875,616 for total traffic expenses and $849,077 for total
maintenance expenses. The expenditures on exchange lines
amounting to $398,244 included the cost of 28 miles of ex-
change pole lines, 3,440 miles of wire in aerial cable lines,
285 miles of aerial wire, 22 miles of underground conduits,
and 11,768 miles of wire in underground cables.
SYDNEY FIRE RATES ADVANCED
At a meeting of the Nova Scotia Board of Fire Under-
writers, held at Halifax on February 9, the following resolu-
tion was adopted: "Resolved, that the rates on all buildings
and their contents in Sydney (other than dwellings) be
changed by removing any surcharge now in force, and in-
creasing the rates as set forth in the tariff book of Sydney
by a surcharge of 50 per cent. This increase to apply to new
business and readjustments from this date (February 8) and
to renewals on and after March 1, 1921."
TO RUN STEAMERS FAR NORTH
The fonnation of a new company to operate steamers
on the Mackenzie River to below Fort Norman has been
announced, and a Toronto man, Charles Miller, is president.
A. Hutchison, also of Toronto, is named &s vice-president.
Four steamers have been taken over by the new company.
Another one is being built and will be ready for the opening
of navigation in the spring. It is announced that the new '
company will be strictly a transportation company and will
not engage in either the oil or fur business. Adva-nce notices
say that in the spring steamers will be operated on the Peace,
Athabaska and Mackenzie Rivers, the steamers on the last-
named river travelling right down to the Arctic during the
summer months. The oil discoverers are credited with prom-
ising a big transportation business on these rivers.
MONTREAL BANKS ARE SWINDLED
Three Montreal banks were early last month swindled
out of $10,000, $5,000 and $2,000 respectively. About Feb-
ruai-y 1 a man entered each of the three banks at their
headquarters offices and opened small accounts. The thi-ee
accounts were opened on the same day. Everything was
done in a regular way. Later, however, the man presented
himself at one of the banks and made out a cheque for $2
and he asked that this be certified. After properly identify-
ing himself, the man had little trouble in having a cheque
for so small an amount accepted. At the two other banks
the same thing was done for amounts varying from $2 to
$10. Later in the week the cheques were presented, endorsed
with another name. In each case the amounts were raised,
the $2 cheque being made for $2,000, the $10 cheque for
$10,000, and the $5 cheque for $5,000. Being certified
cheques, they were cashed without question.
Later investigation showed that there was not enough
money in the account on which the cheque was made out to
meet the amounts which had been paid out. It was only
after investigating the acceptance of the cheques that it was
found out that they had been raised in some way. The
cheques were submitted to experts, who declared that the
cheques had been written for the most part in invisible ink.
The additional figures or words did not show when the
cheques were presented for acceptance, but a simple chemical
process brou-2:ht out the ink later. Microscopic examination
of the cheques showed that they had not been scratched or
discolored in any way, and that a soft, rounded pen had been
used. It was discovered that the man who had opened the
account did not reside at the address he had given, and
there seem to be no clues on which the detectives can work.
March 11, 1921
THE MONETARY TIMES
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
CANADA PERMANENT
MORTGAGE CORPORATION
QUARTERLY DIVIDEND
Notice is hereby given that a Dividend of THREE
PER CENT, for the current quarter, being at the rate of
TWELVE PER CENT. PER ANNUM
on the paid-up Capital Stock of the Corporation, has been
declared, and that the same will be payable
FRIDAY, THE FIRST DAY OF APRIL
next, to Shareholders of record at the close of business on
the Fifteenth day of March.
By order of the Board,
CEO. H SMITH. Assistant General Manager.
Toronto, February 23rd. 1921.
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building. London. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PURDOM. KC. President NATHANIEL MILLS. Manager
London and Canadian Loan and Agency Co., Limited
Established 1873 .".I 10\«K ST.. TOItONTO
Paid-up Capital, 5l.250.000 Reserve Fund. $9.W.O0O Total Assets. $S,0S.'i,87^
HebentareH issued, one hundred dollars and upwards, one to five years-
Best current rates. Interest payable half-yearly. These Debentures are an
Authorized Trustee Investment. Mortgage Loans made in Ontario. Mani-
toba and Sask:itche\van.
WILLIAM WEDD. Secretary. V. H. WADSWORTH. Manager
The ODtario Loan & Debenture Company
DIVIDEND NO. 135.
Notice is hereby given that a QUARTERLY DIVIDENn
of 2'/^ per cent, for the three months ending 31st
.March. 1921 (BPUNG AT TIIK RATE OF TEN PER
CENT. PER ANNUM) has been declared on the paid-up
capital stock of this Company and will be payable at the
Company's OflSce. London, Ontario, on and after the 1st
.■\pril next to Shareholders of record of the I.Sth March.
By order of the Board.
A M. SMART.
Manager.
London, Canada. 1st March, 1921.
r^VER 200 Corporations,
^^^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Quarterly Dividend
Notice is hereby Kiven that a Dividend of Two and onc-iiuarter per
cent., being at the rate of Nine per cent, per annum, upon the paid-up
Capital Stock of this Company, has been declared for the current
Ouarter. and that the same will be payable on and after Ist April.
IMI. to Shareholders of record on the books of the Company at the
close of business on tSth inst. By order of the Board.
' Toronto. :(rd .March. i;)2I. WALTER GILLESPIR. Manaser
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mctntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
IngairieB Invited
General .Manager . Lleol.-Col. «. H. DORRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch OKice
Swift Current, Saskatchewan
JOHN R LITTLE. Managing Director
THE MONETARY TIMES
Volume 66.
FEBRUARY BOND SALES AGAIN HIGH
l^THILE there were no provincial or railroad issues in
»' February, the total bond sales for that month amounted
to $17,660,503, as compared with $38,054,035 in January and
$6,786,405 in February a year ago. The feature last month
was the large amount of municipal borrowings, in which
every province, with the exception of Prince Edward Island,
participated.
With the exception of one corporation issue, and per-
haps a few odd blocks of others, last month's financing was
arranged in Canada. The municipal bonds, particularly those
HIAK'II'AI.ITIRS
S^
Sarnia
Brockville
Oshawa
Port Colborne
Prescott & Russell United Counti(
Walkerville
Whitby
IrOkiuois Falls
Burlington
Milton
Simcoe
Par
Kitchener.. . .
Newmarket.
Stratford.. ..
ttiieliec —
N'erdun (School Com.)
Pointe Clairie
Lachine
Parish of Ste. Agnes (.Montre
225,000 6
175,000 6
164,747 6 & ei
143.964 6
132.475 6
115.000 6ii
100.000 I 6
85.000 , 6
60,000 6t
45.000 h
34.488 6
34.000 6
28,976 ' 5*
40,000 ' 6
20.000 j 6
20,000 : fii
20,000 6
150.000
130.000
I5.000
75,000
>oTa Sicotla-
ilace Bay
Lmherst
.4lber*a —
Drumheller(Mun. Hosp. Dist.).
Islay (Mun. Hosp. Dist.)
Prairie River C. S. D ...
.\llison S.D
Zawale S. D.
Other Schools .
fl.1
iiltob.i-
Winnipeg
Port.age la Prairie..
Roclnvood R..\l
Morris R. M...
Fort Garry S.D. . ..
Fort Garry R. M. . .
Decker C. S. D
Cornu-allisR.M.. ..
West Kildonan . . . .
r.ilbert Plains R.M.
Vorkton
Rural Telephones..
School Districts.. .
Melfort
Bulyea
obert
Mn
• Ja>
Assiniboia
28.000
6.1100
13 000
20.000
1.250.000
54.000
52.853
50.000 I
50.000
80.000
40,000
lOO.OfO '
38.000 I
30.000 I
1.744.853
100 .000
1 1 1 ,700
83,900
8,400
400
4.500 i
22.200
13..^00
30-yr
erial
20.yr. serial
20 years
10 & 15instal.
10 instalments
20 & 30 years
30"instalments
20 instalments
15 instalments
30 i
stain
nts
20 install
20 & 30 instal.
30 instalments
30 instalments
20 years
20 instalments
20 years
Various
of the better class, found a ready market here. Interest
yields were also lower, notwithstanding the generous offerings.
The following figures show the amount of February bond
sales, with comparisons, while details are given below: —
Feb., 1921. Jan., 1921. Feb., 1920.
Provincial $18,250,000 $2,998,000
Municipal $ 9,660,503 5,754,035 3,718,405
Corporation 8,000,000 12,000,000
Railroad 2,050,000 160,000
Totals $17,660,503 $38,054,035 $6,876,405
Purchaser
20 years
20 years
30 instalments
30 year
30 year
I instalm
10 years
15 years
20 years
6.12
6.35
6.45
6.35
6.18
6.35
6.42
6.37
6.40
6.32
6.35
6.67
6.30
6.50
6.00
6.19
6.60
6.40
6.50
7.60
Var.
Var.
Wood. Gundy & Company. A. E. Ames Ik Company
and A. Jarvis & Company
Dominion Securities Corporation
A. B. Ames & Company
Canadian Debentures Corporation
Dominion Securities Corporation
Wood. Gundy & Company
Dominion Securities Corporation
R. C .Matthews & Company
W. A. Mackenzie & Company
Wood. Gundy & Company
A. Jarvis & Company
A. E. Ames & Company
Harris, Forbes & Company. Incorporated
* Wood, Gundy & Company
C. H. Burgess & Company
Dominion Securities Corporation
Locally
Locally
- Societe Generale du Canada
Nesbitt. Thompson Kt Company
Rene.-T. Leclerc
Municipal Debenture Corporation
Royal Securities Co
W. Ross Alger & Company
W. Ross Alger & Company
W. Ross Alger & Company
W. Ross Alger & Company
W. Ross Alger & Company
W. Ross Alger & Company
Wood, Gundy & Company
A. E. Ames & Company
J. A. Thompson & Company
Strang & Snovvden
A. Jarvis & Company
A. Jarvis & Company
Harris. Read & Company
Unicume & Burns. Brandon
J. A. Thompson & Company
W. L. McKinnon & Company
Canada Trust Co
We.r & Comi
Strang & Snc
Various
Various
Locally
Locally
Locally
Locally
Locally
ci McLeod. Young.
98.659
99.80
97.839
96.65
101.418
99.55
97.57
101.193
97.no
96.18
96.73^
91.11
92.583
97.587
100.00
100.00
97.50
Var.
Var.
95.772
96.11
"97.66"
85.50
Krltlsh I'oliinilila-
100.000.
46.000
11.500
(OKPORATION
Howard Smith Paper .Mills, Limited
Spanish River Pulp & Paper Co . Lii
Abitibi Power & Paper Co
1 .000.000
3.000,000
4.000,000
20 yean
20 year:
10 year
Aldred & Company and Associates
Royal Securities Corporation
Peabody, Houghteling Company
March 11, 1921 THE MONETARY TIMES
New Issue
Subscription lists rvill close on or before March 28th, 1921
$2,000,000
Fraser Companies, Limited
S% General Mortgage Gold Bonds Series "A"
Dated March 1st. 1921. Maturing March 1st. 1941. Principal and semi-annual interest payable at The
Roval Bank of Canada. Montreal. Toronto, St. John. N.B., and Halifax. N.S. Interest payable March 1st and
September 1st. Coupon Bonds of SI. 000 and .$500 denominations, with privilege of registration as to principal
only. Trustee — The Montreal Trust Company. Montreal.
Authorized Outstanding
Common Shares $10,000,000 $10,000,000
e^r First Mortgage Serial Bonds Closed 2,2.50,000
8'', General Mortgage Bonds Series "A" (this issue) 10,000,000 2.000.000
S250.000 First Mortgage Bonds mature 1st .April of each year 1921-1929 inclusive. These annual reductions
in funded debt, together with annual cumulative Sinking Fund of 3''r on General Mortgage Bonds, rapidly in-
crease the equity behind this issue.
Complete prospectus, copies of which will be mailed on request, containx a letter from the President of
the Company, from which he summa/rizes as follows: —
Fraser Companies. Limited, is one of the largest manufacturers in Canada of easy bleaching and bleached
sulphite pulp, spruce lumber and cedar shingles. The business has been in successful operation for over forty
years.
Bonds will be secured by direct mortgage and charge on all fixed assets and properties of the Company,
now owned and hereafter acquired by it. and by a floating charge on all other assets of the Company, subject
only to $2,250,000 par value of First Mortgage Serial Bonds, the mortgage securing which is closed at the amount
now outstanding.
Annual cumulative sinking fund of 3"r will commence in 1923 — sufficient to retire the entire issue of Series
"A" Bonds before maturity.
Timber areas — 1.822 square miles leasehold and 210 square miles freehold timber limits, estimated to contain
1.760.000.000 ft. b.m. saw logs and 1.650.000 cords pulpwood. Company in addition has leasehold cutting rights
on 900 square miles of privately owned lands.
Company owns and operates two pulp mills, at Kdmundston and Chatham. X.B.. and twelve saw mills in
New Brunswick and the eastern portion of (Juebec. Each of the Company's mills is located in convenient proximity
to the area from which its logs are obtained.
.\nnual output : —
Rdmundston Mill— Bleached .Sulphite I'ulp 54,000
Dominion Mill — Easy Bleaching .Sulphite I'ulp 18,000
Total Pulp Production 72,000 tons
Lumber— 1.30,000,000 ft. b.m.. annually. Shingles— 168,000.000 pes. annually.
Plant and Property Valuation — S14.000.000 against S4.250,000 of Bonds outstanding, including this issue.
Net Liquid .Vssets (Working Capital), after deducting all current liabilities and including the proceeds of
this issue, will be in excess of $4,000,000.
-Average .Vnnual Net Earnings, after depreciation, available for interest charges on these Bonds, for the
five years ended December .list. 1920. were $741,450. over four times interest charges on General Mortgage Bonds
now to be issued.
Net Earnings, after depreciation, for year ended December 31st. 1920. available for interest charges on
General Mortgage Bonds, amounted to $1,276,301. nearly eight times interest charges on General .Alortgage
Bonds now to be issued.
TTV offer the unsold balance, if, as aiid when issued and received by us, at the price of:
99 and accrued interest, to yield S.IO^
ROYAL SECURITIES CORPORATION UNITED FINANCIAL CORPORATION
LIMITED LIMITED
164 St. James Street - MONTREAL 112 St. James Street - MONTREAL
TORONTO HALIFAX ST. JOHN WINNIPEG 14 King Street East 709-7 1 1 Hope Chambers
VANCOUVER NEW YORK LONDON TORONTO OTTAWA
468
24
THE MONETARY TIMES
Volume 66
FEBRUARY FIRE LOSSES ABNORMAL
Two Months' Total Higher than Last Year — Winnipeg, Levis,
Toronto and Saskatoon had Largest Fires
Fire losses in Canada in February are estimated by The
Motictary Times at $2,735,500, made up as follows: —
Fires exceeding $10,000 $2,164,000
Small fires reported 71,500
Estimate of unreported fires 500,000
$2,735,500
This is larger than the loss in February, 1920, and makes
a total of $4,973,400 for the first two months of 1921, com-
pared with $4,633,425 for January and February, 1920.
List of Large Fires
The following are the February fires causing damage of
$10,000 and over:—
Cooksville, Ont., Feb. 2, garage, $10,000.
Halifax, N.S., Feb. 3, billiard parlors, $100,000.
Toronto, Ont., Feb. 3, residence, $58,500.
Toronto, Ont., Feb. 6, building, $150,000.
Windsor, Ont., Feb. 1, brewery, $25,000.
Winnipeg, Man., Feb. 3, business block, $300,000.
Winnipeg, Man., Feb. 6, business block, $75,000.
Essex, Ont., Feb. 15, school, $60,000.
Guelph, Ont., Feb. 10, factory, $50,000.
Hamilton, Ont., Feb. 13, Osborne Chambers, $70,000.
London, Ont., Feb. 10, store, $42,000.
Ottawa, Ont., Feb. 13, storeroom, $12,000.
Port Arthur, Ont., Feb. 13, building, $20,000.
Rothesay, N.B., Feb. 8, residence, $15,000.
Ste. Helene, Kamouraska, P.Q., Feb. 2, store, $10,000.
Shawinigan Falls, Que., Feb. 8, two houses, $20,000.
Campbellton, N.B., Feb. 21, lumber mill, $30,000.
Fort William, Ont., Feb. 17, business block, $15,000.
Hamilton, Ont., Feb. 23, hospital, $70,000.
Levis, Que., Feb. 21, car sheds, $300,000.
Montreal, Que., Feb. 18, building, $100,000.
Ottawa, Ont., Feb. 19, business block, $40,000.
Pictou, N.S., Feb. 16, mill, $20,000.
St. John's, Nfld., Feb. 19, residence, $50,000.
Saskatoon, Sask., block, $200,000.
Toronto, Ont, Feb. 22, building, $35,000.
Travers, Alta., Feb. 17, building, $20,000.
Vancouver, B.C., Feb. 15, cabaret, $10,000.
Woodbridge, Ont., Feb. 20, church, $20,000.
Woodstock, Ont., Feb. 19, bam, $10,000.
Brandon, Man., Feb. 23, store, $16,000.
Creighton Mines, Ont., Feb. 25, schoolhouse. $20,000.
Lambton, Ont., Feb. 27, building, $25,000.
Loiselleville, Ont., Feb. 26, school, $40,000.
London, Ont., Feb. 23, billiard parlor, $10,500.
Trenton, N.S., Feb. 25, plant, $60,000.
Welland, Ont., Feb. 28, mill, $25,000.
Yarmouth South, N.S., Feb. 27, church, $30,000.
Analysis of Causes
Among the causes reported were: Furnaces 5, ex-
plosions 4, ovens 3, incendiary origin 3, sparks 2, lighted
candle 1, spontaneous cumbustion 1, electrical origin 1,
cigarette stub 1.
The following structures were destroyed or damaged:
Residences 34, stores 11, buildings 15, business blocks 6,
bams 6, warehouses 4, poolrooms 3, schools 3, mills 3, fac-
tories 2, plants 2, hotels 2, bakeries 2, churches 2, res-
taurants 2, garage 1, picture gallery 1, brewery 1, hospital 1,
car sheds 1, theatre 1, cabaret 1, icehouse 1, roomin-house 1.
The following is a list of deaths from fires during Feb-
ruary:—
Woodstock, Ont, Feb. 18, clothing caught fire 1
Melfort, Sask., Feb. 18, burnt in building 2
Montreal, Que., Feb. 26, clothing caught fire 1
Pine Hill, Que., Feb 7, burnt in building 4
Vernon, B.C., Feb. 4, bedding caught fire 2
Brampton, Ont., Feb. 11, burnt in building 1
Marbleton, Que., Feb. 10, burnt in building . . . 1
Moncton, N.B., Feb. 14, burnt in building 6
18
The Monetary Times' record for the past four years shows
the following monthly losses:—
1921.
2,237,900
2,735,500
Month.
1918.
1919.
1920.
January
. $ 2,688,556 $
; 3,915,290 \
\ 2,637,850
February . .
. 2,243,762
1,091,834
1,895,575
March
1,682,286
2,154,095
1,793,200
April ....
3,240,187
1,080,070
3,229,500
May
. 3,570,014
1,785,130
2,001,819
June
. 3,080,982
3,337,530
1,424,319
July
3,369,684
1,118,377
1,426,850
August . . .
. 3,110,445
1,374,495
1,857,800
September .
917,286
1,940,272
2,480,485
October . . .
5,119,145
1,023,288
2,467,901
November .
1,059,580
2,339,870
2,769,800
December
. 1,733,917
2,047,496
3,721,475
Totals . . $31,815,844 $23,207,647 $27,706,574 $ 4,973,400
STANSTEAD AND SHERBROOKE FIRE
The annual report of the Stanstead and Sherbrooke
Mutual Fire Insurance Co., submitted at the meeting in Sher-
brooke, Que., on February 9, showed net income of $153,585
'and expenditure of $132,203, leaving a surplus of $21,382.
Assets are $354,735, and the surplus over liabilities is $323,-
861. The usual assessment of 20 per cent, on all deposit
notes in force was levied, and a resolution passed to issue
new stock to the amount of $200,000. George Armitage is
the manager of the company.
CENTRAL RAILWAY APPEAL DECIDED
The appeal has been dismissed in the Exchequer Court
of Canada of C. N. Armstrong, of Montreal, against the
report of the referee in the Central Railway case. Mr. Arm-
strong asked prior consideration for his claims against the
railway, amounting to $109,941 and asked that the court set
aside in his behalf the report of the referee. Dr. Charles
Morse, registrar of the Exchequer Court. Mr. Justice
Audette ruled that Mr. Armstrong had failed to establish
his claim and dismissed the appeal with costs. The report
of the referee is upheld.
Mr. Armstrong was appointed manager of the Central
Railway when the company was in process of forma'tion. The
railway, which was projected to run from Montreal to Mid-
land, Ont., was never constructed. Mr. Armstrong's salary
was fixed at $10,000 a year for ten years "to be paid from
time to time as the boaa-d of directors shall instruct." The
judge rules that a company is not justified in paying a man-
ager of a railway which does not operate and therefore has
no revenue. Although the salary was agreed upon, the judge
notes that no definite time w&s fixed for its payment. Mr.
Armstrong's claim includes an amount of $45,000, a balance
of $50,000 which was voted to him in first mortgage bonds,
which he stated were given him as collateral. The judgment
find.s that the claimant failed to prove that these bonds had
been given him.
Some smaller items representing expense money claimed,
were also disallowed, it being shown that vouchers had not
been submitted for moneys I'eceived, and any sums due on
expenses were probably offset by balances due to the com-
pany. The entire claim was dismissed.
March 11, 1021
THE jMONETARY TIMES
Protecting the Nation's Vaults
Banks and other Financial Institutions, Manufacturers, etc.,
are assured of absolute safety and protection against robbery.
A Vault Door equipped with the
Dillon Re-Locking Burglar Proof
Vault Lock will defy every method
of attack of the most experienced
cracksman.
This device has now been installed
in over 2200 Banks, and every case
where it has been put to the
test it has foiled the would-be
robbers.
The Dillon Burglar Proof Vault
Lock consists of a secret lock,
which "springs" re-locking all the
bolts on the door when the regular
combination is tampered with. It
operates only when the combina-
tion is punched in, shot off, burned
out or otherwise destroyed, and is
not subject to false lock-outs.
If you have a vault, for the storage
of money, notes, bonds or other
valuable papers it should be
equipped with a
Buirglax- Proof
Y/anjT Lock
Dillon Burglar Proof equipment includes complete
Electrical Protection covering daylight and nitiht robb-^ries,
as well as burglar proof locks for vault doors.
Write, on your business letter head, for complete information or
we will arrange for a private demonstra.ion to prove its efficiency.
ARTHUR GRAVELLE & SONS, 212 Plaza Bldg, Ottawa, Ont.
Sole Canadian Distributors jor
DILLON LOCK WORKS, Fort Dodge, Iowa.
477
24b
THE MONETARY TIMES
Volume 66.
DIVIDENDS AND NOTICES
lRioit)oii Company Ximiteb
FIKST CUMUr.ATIVE I'KEKERENCE STOCK
DIVIDEND No. 3
Notice is hereby given that a quarterly dividend of 2''.
(being at the rate of 8 per cent, per annum), has been de-
clared on the First Cumulative Preference Stock of this
Company for the quarter ending March 31st, 1921, payable
April 1st, 1921, to Shareholders of record at the close of
business March 19th, 1921.
By Order of the Board.
F. B. WHITTET, Secretary-Treasurer.
Montreal, March 3rd, 1921. 473
TRiovbon (lompanig Xinitteb
CUMULATIVE CONVERTIBLE PREFERENCE STOCK
DIVIDEND No. 3
Notice is hereby given that a quarterly dividend of
1%% (being at the rate of 7'f per annum), has been de-
clared on the Cumulative Convertible Preference Stock of
this Company for the quarter ending March 31st, 1921, pay-
able April 1st, 1921, to shareholders of record at the close
of business March 19th, 1921.
By Order of the Board.
F. B. WHITTET, Secretary-Treasurer.
Montreal, March 3rd, 1921. 474
Zhc IRiorbon pulp d paper
Company, Ximiteb
PREFERRED STOCK DIVIDEND No. 35
Notice is hereby given that a dividend of 1%,% (being
at the rate of T^'r per annum), on the Preferred Stock of
this Company has been declared payable March 31st, 1921,
to shareholders of record at the close of business March
22nd. 1921.
Bv Order of the Board.
F. B. WHITTET,
Secretary-Treasurer.
Montreal, March 3rd, 1921. 472
PENMANS. LIMITED
DIVIDEND NOTICE
Notice is hereby gi-*en that the following Dividends
have been declared this day for the quarter ending 30th
April, 1921.
On the Preferred Stock, one and one-half per cent.
( 1 "2 9'r ) payable on the 2nd day of May to Shareholders
of record of the 21st day of April, 1921.
On the Common Stock, two per cent. (2%) payable on
the 16th day of May to Shareholders of record of the 5tli
day of May", 1921.
By Order of the Board.
C. B. ROBINSON,
Secretary-Treasurer.
IMontreal, Que., March 7, 1921. 475
CANADIAN GENERAL ELECTRIC COMPANY. LI.MITED
ANNUAL GENERAL MEETING
Notice is hereby given that the Annual General Meet-
ing of the Shareholders of the Canadian General Electric
Company, Limited, will be held at the Head Office of the
Company, corner of King and Simcoe Streets, Toronto, on
Monday," March 21st, 1921, at 12.00 o'clock noon, for the
purpose of receiving the Annual Report of the Directors,
the election 01' Directors for the ensuing year, and for the
transaction ot any other business which may properly be
brought before the meeting.
By order of the Board,
W. H. NESBITT,
Secretary.
Toronto, March 5th, 1921. " 466
THE CANADIAN CROCKER-WHEELER CO.. LIMITED
DIVIDEND NOTICE
The Directors of the Canadian Crocker-Wheeler Com-
pany, Limited, have declared a One and Three-Quarters per
cent. (l%''r) dividend on the prefeiTed stock of the Com-
pany for the three months ending March 31st, 1921, to share-
holders of record March 21st, 1921. Also a dividend of
One and Three-Quarters per cent. {l%'"c) on the common
stock of the Company for the three months ending March
31st, to shareholders of record March 21st, 1921.
The Stock books will be closed from the 21st to the 31st
of March, both days inclusive.
Checks will be mailed to shareholders on March 31st,
1921.
By Order of the Board.
H.s A. BURSON.
Secretary.
St. Catharines, Ont, March 5th, 1921. " 476
ACTION ON I.O.F. POLICY
The Toi'onto courts have found for the plaintiff in the
suit of Clarence Richardson against the I.O.F. for $831, one-
half of the amount due on the life of his father, C. W.
Richardson, who died in Chicago, January 6, 1918. The plain-
tiff and his grandmother were named as beneficiaries, but
later the insured had his sons name replaced by that of Mrs.
Gussie Richardson, whom he represented as his wife, and
tp whom one-half of the money was paid. The deceased had
a wife, Mrs. Nellie Richardson, mother of the plaintiff, living
in Toronto at the time he went through the form of mari-iage
in Chicago, so liis Honor finds that, substituting the name
of Mrs. Gussie Richardson, who was not the insured's wife,
for that of his son, was contrary to the Insurance \et. At
the time the alteration was made the plaintiff was overseas
on active service, and knew nothing of his father's death
until his return on May 30, 1919.
w
E have 450 good businesses for sale in the central
portion of Alberta. EverytSing from a General
Store to a small Confectionery
If you want a business in Alberta you want us.
WHYTE & CO., LIMITED
111 Pantagea Building
Edmonton, Alberta
Ma<-ch 11. 1921
THE MONETARY TIMES
DEBENTURES FOR SALE
71st Annual Statement
TENDERS FOR DEBENTURES
BURNABY, B.C.
Firm offer will be received up to noon, Monday, March
14th, for $71,700.00 Burnaby, B.C., school debentures, six per
cent., maturing December 31st, 1935, and $60,000.00 water-
works debentures, maturing December 31st, 1940; payable
New Westminster and Montreal. Interest payable June 30th
and December 31st. Debentures certified to by inspector of
municipalities. Denominations, $100 and $500. Cheque for
one per cent, of total bid must accompany tender.
ARTHUR G. MOORE, Clerk,
467 Edmonds, B.C.
RUR.4L MUNICIPALITY OF ELLICE
Tenders invited for one set of debentures for $49,000
payable in 30 years by annual equal instalments (principal
and interest) at 6 per cent, per annum, Debentui'es are for
building Good Roads and are Guaranteed by the Provincial
Government. Tenders to reach the undersigned not later
than 2 p.m. Saturday, March the 19th, A.T). 1921. Lowest
or any tender not necessarily accepted.
J. E. SELBY,
Sec.-treas. R.M. of Ellice.
St. Lazare, Man., March 3rd, 1921. . 470
Condensed Advertisements
" Positions Wanted." ;(i: per word all other condensed advertisements
5c. per word. Minimum charge for any condensed advertisement t>5c
per insertion. All condensed advertisements must conform to usual
style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance : 50 per cent, extra if charged.
FIRE INSURANCE SURVEYOR with Board of Under-
writers, desires position with company. 6'2 years under-
writer's experience, familiar with Eastern and Western
Schedules, also 5 years architectural experience. Good
references. Box 397, Motictary Tiiifis, Toronto.
FOR SALE, Alexander Hamilton Institute books and all
privileges, complete. New. Must sacrifice. Box 399,
Monetary Ihitcs, Toronto. -
SECRETARY-TREASURER, age 30, of large company
in British Columbia desires connection in similar capacity
with well-established company in Ontario, Hamilton pre-
ferred. First-class accountant, with excellent credentials; the
more responsibility to be assumed, the better. Prepared to
go east immediately for interview for any legitimate proposi-
tion. Apply by wire or letter to H. .Anscomb, 1921 Govern-
ment Street, Victoria, B.C. 405
ENGLISHMAN, 48, married, now office manager of
branch of an Eastern Trust Company desires management
of trust or other financial firm intending to establish in Van-
couver. Has sounil judgment and a thorough knowledge of
accounting, finance, land values, investments, etc.; good
mathematician; resident here since 1907. Position must offer
satisfactory inducement as well as ample prospects. First-
class references can be furnished. P.O. Box 854, Vancouver,
B.C. 451
OF THE
Htna Life Insurance
COMPANY
HARTFORD, CONNECTICUT
MORGAN G. BULKELEY
President
JANUARY 1st, 1921
ASSETS.
Home OflSce Buildings ?^ 1,375,000.00
Real Estate acquired by Foreclosure 16,689.92
Cash on Hand and in Banks 7,081,108.13
Stocks and Bonds 66,982,686.79
Mortgages secured by Real Estate 72,919,028.23
Loans on Collateral 949,039.00
Loans secured by Policies of this Company . . 13,683,406.68
Interest due and accrued December 31, 1920 4,110,446.44
Due from Reinsurance Companies and Others 35,154.90
Premiums in course of collection and Deferred
Premiums 7,463,101.79
Amortized Value of Bonds and Market Value
of Stocks over Book Value, less Assets
not admitted 2,886,704.26
Total Assets $177,502,366.14
LIABILITIES.
Reserve on Life, Endowment and Term Poli-
cies $123,451,986.00
Reserves not included above 3,473,350.80
Premiums paid in Advance, and other Lia-
bilities 1,976,303.02
Unearned Interest on Policy Loans 375,130.07
Ta.xes falling due in 1921 1,512,652.16
Re.'ierve for special Class of Policies and
Dividends to Policyholders payable in
1921 ($1,905,-539.43) 4,096,564.26
Losses and Claims awaiting Proof and not
yet due 1,953,566.16
Unearned Premiums on Accident, Health and
Liability Insurance 7,707,429.48
Reserve for Liability Cl&ims 13,927,967.28
Capital $ 5,000,000.00
Surplus 14,027,416.91
Surplus to Policyholders (in-
cluding Capital) 19,027,416.91
Total Liabilities $177,502,366.14
T. H. Christmas and Sons, Managers,
Guardian Building, St. James St., Montreal.
Johnson and Orr, Managers,
906-7-8-9 C.P.R. Building, Toronto.
G. Edward Bingham, Manager,
209 Dominion Savings Bank Building, London.
Douglas J. Johnston, Manager,
605 Union Trust Building, Winnipeg.
J. F. Brandt, Manager,
Rogers Building, Vancouver.
THE MONETARY TIMES
Volume RG.
WOULD HAVE NATIONAL HEALTH INSURANCE
British Columbia Movement May Reach Ottawa — Insurance
Developments in B.C.
(Special to The Monetary Times.)
Vancouver, March 4, 1921.
WHILE no oflicial word has been received regarding the
government's intention, a persistent rumor is in cir-
culation in Victoria circles that the FederfJ government has
been approached with a request that the State Health In-
surance Bill, proposed here last year, be passed by them;
members of the legislature opposed to state health insurance
state that if it were passed in British Columbia this province
would be a mecca for hundreds of broken down professional
beggars, and that class of men who would rather be sick than
work, any day.
The Rule of the Road
The announcement of the Hon. Dr. King that the rule of
the road in British Columbia will be changed from left to
right in December next ha.s again ai-oused a great deal of
interest. In all sections in British Columbia outside where
the street railway company operates, the rule of the road
has been changed from left to right, resulting in many auto-
mobile accidents. Whera the street railway operates, how-
ever, the B.C. Electric Co. state they have made no provision
for accommod&ting their tracks to comply with the new order.
They have stated to the press that no matter how willing
they are to fall into line with the desire of the people for the
change, they had not the necessary one million dollars to
spend upon the work. The company do not believe that the
public realized the amount of money necessary. Thirty new
cars would be required alone to take the plaice of those taken
oflF to be altered.
The insurance companies, as well as the general public,
are quite aware that auto accidents are on the increase in
British Columbia, as well as auto thefts.
About a year ago Vancouver Island boasted that not in
the history of automobiles had a single car been stolen which
had not been recovered, and Vancouver proudly referred to
their record of only two stolen cars which had not been re-
covered. For the past year, however, this record was not
maintained, for statistics show that eight or ten cars stolen
have not been recovered, and the number of stolen cars
which have been recovered in damaged condition is greatly
increased over the previous year.
So far as accidents are concerned, it has been i-eported
to the Ratepayers' Association that l&st year there was an
accident once in every 17 days in Vancouver, but for the first
part of this year there was an accident oecun-ing for every
ten days. It is only some of the reckless drivers who are
responsible for these accidents; most of them are from break-
ing the rules by driving past street cars when the la-tter have
stopped or are coming to a stop, and not taking proper notice
of street intersections.
A delegation of life underwriters waited on Attorney-
' General Farris this week, asking that legislation be passed
whereby the life agents may be licensed and the insurance
act amended in such & way as to improve conditions for the
public as well as the agents. They were promised considera-
tion of their request.
It is understood that insurance agents in other lines will
pi-obably make the same request, so that if insurance agents
are to be licensed, it will apply to all agents of aJl insurance
companies. It is understood that an inspector of insurance
is to be appointed. There is a feeling among insurance
agents that the legislature of British Columbia are too busy
with the prohibition bill and other bills of & contentious
nature to take up the question of any amendment to the
Insurance Act at this session, and they feel it is better to
take a little more time in preparing their wishes and place
them in such a form as to assist the government in carrying
out their desires in this matter.
AUTOMOBILE INSUR.\NCE POINTS
Desirability of Separating Personal Accident and Property
Damage Claims in Third Party Contract
(Contributed.)
YJiriTH the approach of the automobile season special at-
»' tention may be directed to points of interest in insur-
ance contracts. One matter which concerns both automobile
owners and insurance agents is the practice which has ruled
in the past of separating the risk of accidents into two dis-
tinct sections, viz: (1) personal injury claims and (2)
property damage claims. It has been quite common for auto-
mobile owners to insure the personal injury risk and not to
cover the property damage risk; or, on the other hand, to
insure the property damage risk and to neglect to insure
against the much more serious risk of personal injury claims.
There have even been numerous cases where the "personal
injury" risk has been insured in one company and the
"property damage" insurance covered in another company.
This condition of affairs has lasted so long that it has come
to be regarded as a matter of course; but it is necessary to
point out that this procedure is unnecessary and it is un-
desirable.
The Third Party Accident
If an automobile owner is unfortunate enough to be
involved in what is legally termed a Third Party accident,
he is pretty certain in the majority of cases to be met with
a claim for both "personal injury" and "property damage."
For example, take the simple case of a pedestrian who is
knocked over. His bodily hurt comes under the "personal
injury" heading; but his clothes come under the category
of "property damage." Obviously, the commonsense course
is to handle the claim in its entirety.
Or take the case of a cyclist who is mixed up with a
car accident. The damaged machine forms the basis of a
"property damage" claim ; so do the rider's clothes, while the
"personal injuries" would also form the subject of a claim.
Then again, should the automobile collide with a horse
drawn rig. Here we have first the damage to the occupants,
which would be termed a "personal injury" claim; while their
clothes and the horse and rig- itself would come under the
heading of the "property damage."
It requires very little thought to appreciate that there is
considerable danger, not to mention added expense and in-
convenience, in treating such combination claims as separate
sections, with the insurance company looking after one part
and the automobile owner left to look after the other part;
and if the risk has been separated and insured with two dif-
ferent companies there is still the same objection on the
score of overlapping, unnecessary expense and possible con-
fusion owing to conflicting ideas as to liability and procedure
in settlement.
A Change in this Direction
It is much the best course to insure the risk of "Claims
by the Public" (persons and property) as an inclusive whole.
Special rates have been promulgated by the Canadian Auto-
mobile Underwriters' Association providing for an inclusive
indemnity of $20,000 against the combined risk of personal
injury and property damage, this inclusive limit being con-
siderably in excess of the standard limits which had previ-
ously been regarded as sufficient, but which the experience
of recent years has shown beyond any question to provide
inadequate protection against the riskS of the road.
An additional point worthy of special attention is that
automobile owners quite often misunderstand the "property
damage" cover as giving them indemnity in respect of their
own property, including the automobile itself. Of course,
the cover is limited to legal liability for claims by the public
for damage to their property; but it does not please an as-
sured to find out his mistake when it is too late. The in-
surance companies would do well to discard such a mislead-
ing and unsatisfactory title for this pai-ticul^r risk.
March 11, 1921
THE MONETARY TIMES
25
^IIIIIIIIIIIIIMIMIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIMIIIIIIIIIIIMMilllllllllllMIIIIIIIIIIIIIIIIIIIIBIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
I CHARTERED ACCOUNTANTS I
niiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiir
KENNETH BOWMAN
Chartered Accountant
(Successor to Baldwin, Dow A BowmanI
EDMONTON ALBERTA
CHARLES D. CORBOULD
Chartered Acconntant and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
Correspondents at Toronto. London, Eng,.
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
\V, A Bawdkn, C,A. (F,C,A. EnRland and
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Branch at Nanaimo. B.C.
Telegrarhic and Cable Address
"Nedwab." Victoria. B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D, A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON ONTARIO
W. A. Henderson & Co.
*._nartered Accountants
508-509 Electric Railway Chambers
Winnipeg, Man.
W, A. Henderson, C.A. J. J. Cordner, C.A.
ablp iddr
•Ormlii
• We
Arthur E. Phillips & Co.
Chartered Accountants
508-509 Electric Railway Chambers
WINNIPEG - - Man.
Cable Address—" Llnravel."
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS.
24 King Street West - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Cluirteretl Acconnlatil-.. Aiiittliirs.
Iruslees. Liguiitnlors
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Hamilton Bids-
TORONTO
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407 408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING - TORONTO, CANADA
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Chartered Accountants. Trustees.
Receivers, Liciuidators
Merchants Bank BIdg.. 15 V\'eIIin8ton Street West ToronI
Established 1864 a i ' nilwnr
\< Williamson. C A. .1. I), W.illace. C.A.
A , I, Walker, C.A- HA Shiach C.A,
RUTHERFORD WILLIAMSON & CO.
chartered Accountants, Trustees and
Liquidators
86 Adelaide Street East, TORO.V'TO
604 McGlLL BuiLDlNC, MONTREAL
Cable Address - " WILLCO."
Represented at Halifax. St. John. Winnipeg,
Vane, liver.
HENRY BARBER & CO
Established 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railway Building,
6 King Street West - TORONTO
Your card here would ensure it being seen by the principal
financial and commercial interests in Canada.
Ask about special rates for this page.
THE MONETARY TIMES
SALE OF GOODS TO JOINT PURCHASERS
DischaiKe of One, Liability of the Other — Decision of
Saskatchewan Court of Appeal
IM a recent case before the Saskatchewan Court of Appeal
relating to a sale of goods to joint debtors, the Court
held, regarding- the liability of one, after the other had been
discharged, that where one of two joint purchasers of a
chattel has given a mortgage on real estate owned by him
to secure the purchase money and the vendor has discharged
the mortgage and taken a transfer of the land in complete
release of such joint debtor, it must before it can proceed
against the other joint debtor, bring the land into account
and allow such other joint purchaser, as a credit, the value
of the land.
The facts of the case were that the defendant Bain and
W. J. Merriam purchased certain farm machinery from the
Runiely Products Co. 'under written agreements. As col-
lateral security for the moneys due under these agreements,
Bain and Merriam each executed a mortgage in favor of
the vendor on land respectively owned by them. The mort-
gages and agreements were duly assigned to the plaintiff
company. This action was brought to recover the balance
alleged to be due under the agreements and to enforce the
mortgage given by the defendant. It is admitted that the
company discharged the mortgage given by Merriam and
took a tratisfer of the land from him.
Judgment of the Court
In his decision Mr. Justice Newlands says: —
"The evidence in this case shows that the plaintiff took
from Merriam, who was jointly indebted with defendant for
the debt for which this action is brought, a transfer of a
quarter section of land in satisfaction of Merriam's liability
on this joint debt. If Merriam had discharged his liability
*by a cash payment, plaintiff would have had to give de-
fendant credit for it. For the same reason it must give
him credit for the value of this land. Mr. Bastedo's state-
ment that the plaintiff is willing to transfer this land to
defendant on his paying the whole debt, can have no effect
upon the legal rig-hts of the parties. The quarter section
transferred by Merriam to plaintiff is its property. Defend-
ant has and can have no le-yal claim to it. If plaintiff were
to transfer it to him it would be a gift.
"I am therefore of the opinion that plaintiff, having
taken a quarter section of land from Merriam in satisfaction
of his indebtedness on the joint debt of himself and defend-
ant, must give defendant credit for its value. There should
be a reference to ascertain the value of this land. The
defendant should therefore be credited with the value of this
land as of the date of the transfer, with interest at the
rate charged in the statement of claim, and the appeal should
be allowed to that extent, with costs."
OFFICE SPACE IN GOOD DEMAND
That the demand for houses is still greater than the
supply was brought out at the third annual meeting of the
Building Owners' and Managers' Association of Ontario, held
on March 1 in the Trusts and Guarantee Building, Toronto.
It was reported that all buildings represented by those pre-
sent vpere 100 per cent, rented and the demand was very keen.
The president's address indicated favorable progress of the
association, the membership being increased by thirteen dur-
ing the past year, bringing the aggregate up to forty-one,
representing a total value of pi-operty assessed at over $25,-
000,000. The president congratulated the members on the
almost universal adoption of "Standard Method of Floor
Measurement," which resulted in practical elimination of dis-
putes between landlords and tenants on this question.
The following officers were elected: President, D. N.
Soper; first vice-president, W. C. Dawson; second vice-presi-
dent, A. H. Kii-by; third vice-president, G. N. Cottrelle; secre-
tary, G. A. Hodgson; treasurer, Murrav Wilson.
DEBENTURE COMPANY OF CANADA
The annual statement of the Debenture Company of Can-
ada, with head office in Regina, for the year ending Novem-
ber 30 last, shows interest earned, after deducting the charges
of management, amounting to .$6,13.3. Including the balance
to the company's credit at the end of the previous year, there
is available for distribution the sum of $6,133. Of this
amount, $5,805 is applied on dividends at the rate of 10 per
cent. After provision for sundi-y items there is a balance of
$190. Assets now total $88,474, paid-up capital $77,243, and
reserves, $5,410. This company invests all its funds in tax
sale certificates on farm lands. Although operating under a
Dominion charter, the company has not as yet done any busi-
ness outside of Saskatchewan.
SHIPPING CONCERN IN DIFFICULTY
According to an announcement from New Y'ork, Hanne-
vig and Co., a banking, foreign exchange and shipping
concern, which was interested in the Dominion Shipbuilding
&nd Repairs Co., has gone into the hands of a receiver. The
appointment of a receiver followed the action of Mr. Osier
Wade, assignee of the Dominion Shipbuilding and Repairs
Co., in seeking to collect $887,105 which Christopher Hanne-
vig- is said to owe the defunct concern.
It was clr.'imed that Hannevig has large assets and lia-
bilities in Norway and a receivership is necessary to prevent
the dissipation of the assets of Hannevig and Co. The re-
ceiver issued a statement to the effect that the trouble which
Hannevig and Co. found themselves in was due to the delay
of the United States Shipping Board in adjusting its obli-
gE'tion with Hannevig and Co.
CONDITIONS IN REAL ESTATE
At the annual meeting of the Winnipeg Real Est&te Ex-
change, held on February 11, it was reported that during
1920, 4,130 parcels of land had been valued, to a total amount
of $13,600,000. The membership is now 82. The following
officers were elected for 1921: President, A. T. Liddle; first
vice-president, J. A. Flanders; second vice-president, A. M.
Simpson; secretary-treasurer, W. H. Gardner; directors, R.
H. Young, W. P. Rodgers, R. W. Rutherford, G. W. Downey,
James Scott, J. Mcjcgregor, C. D. Shepard, T. J. Langford,
H. A. Argue, Brig.-Gen. R. W. Paterson and W. J. Long.
Need of a different basis of taxation for Winnipeg was
strongly urged by John Macgregor, retiring president, in an
address at the meeting. He pointed out that the budget for
the city of Winnipeg was now more than equal to that on
the whole province, and that the entire requirements of the
city, educr.tional and municipal, save a very small percentage,
were levied on real estate, while other forms of wealth and
incomes were exempt. "The position of his worship the
mayor on the question is a very sound one," he said, "and
it would be well if every member of the exchange would take
an interest in this question and stand behind the city authori-
ties when they present their cases to the legislature. I should
like to suggest in this connection that the amount realized
from &n income tax be specially allocated for some particular
purpose, say for education, rather than that it be included
in the general revenues of the city." The proposed provin-
cial income tax should also receive the interest of the real
estate exchange members, Mr. Macgregor stated. He sug-
gested a central collecting agency for the Dominion, provin-
cial and municip&l income tax.
Mention was made of the question of stimulating immi-
gration to Manitoba, and the speaker declared the real estate
exchange had given every assistance in the matter. Mr.
Macgregor preferred to mg.ke no prophecy on the outlook in
the real estate business for 1921, but expressed hope for an
improvement. Building materials will be considerably
cheaper, he said.
March 11, 1921
THE MONETARY TIMES
iUiiiiiiiiiuiiitiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiinniiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^^^
I REPRESENTATIVE LEGAL FIRMS [
nlilllllllllllllllllilMIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIilMIIIIIIIIIIIMIIIIIIIIIIIMIIIIIIIIIIUlllllllllllllUlllllllllllllllllIIIIIIIIIIIIIIIIIIIIIIIII^
CALGARY
Charles F. Adams, K.C.
Bank of Montreal Bldg.
CALGARY - - ALTA.
W. F
W. Lent. K C. Alex
B. .M
icliay. .M.A..
LL.B. H. I). .Mann.
.M.A..
LL.B.
LENT. MACKAY
&
MANN
Barrlnlrra, KollcltorH.
:««larle8, F.lc. |
30S G
rain Exchange Bldg .
Calg:
ry. Alberta
Cable
Address."Lenjo" W
•stern
Union Code
Solic
tors for The Standard
Bank of Canada. |
The Northern Trusts Co..
Assot
iated .Mort-
sage
Investors. &c.
1
WRIGHT & WRIGHT
Barristers. Solicitors, Notaries, Etc.
Suite 10-I5 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon A. C. Hulherford. K C , LL.I).
F. C. Jamieson. K.C. Clias. H. Grunt
S. H. McCuaiK Cecil Rutherford
RUTHERFORD, JAMIESON
& GRANT
Barrister*, Solicitors, Etc.
514-18 McLeod Bldg. Edmonton, Alberta
LETHBRIDGE, Alta.
Conybeare, Church
&
Davidson
Barristers. Solicitors, Etc. |
Solicitors
and Loan
for Bank of .Mo
Co. of Canada.
Trust Co.., &c
ntre
Bri
. &c
il. The Trust
ish Canadian
C F P C
onybcare. K.C. H
K. K. Ilavidson,
. W. Church. .MA. 1
LL.B. 1
Lethbridce
Alta. 1
LETHBRIDGE, Alta.
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE
MEDICINE HAT
G. F. H. Long. LL.B. J. W. Sleight. B.A.
LONG & SLEIGHT
Barrister!, etc.
MEDICINE HAT and BROOKS. Alta.
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers, Etc.
Solicitors-Bank of Montreal
Cunad.an B:inli of I nnviicrce
Moose Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince .Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT, SASK.
SASKATOON
C, L. DUR[E. B.A. B. .M. Wakeling
DURIE & WAKELING
Barristers and Solicitors
Solicitors for the Bank of Hamilton. The
Great West Permanent Loan Co. The
.Monarch Life A.ssurance Co.
Citiiailn Riil1<tlns Saskatoon, Canada
TORONTO
G.W. MORLEY&COMPANY
Barristers, Solicitors. Etc.
802 Lumsden Building. Toronto
Solicitors for A. G. Spalding & Bros, of Can.,
Ltd.; A. J. Reach Co. of Can.. Ltd.: Dominion
Chautauquas. Ltd.. etc.. etc.
Special attention Riven to Corporation work
and collections.
Cable Address: •Morlcy," Toronto
VANCOUVER
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers. Solicitors. Etc.
Solicitors for Bank of .Montreal (Bank of
British North America Branch)
Yorkthirt BaiMiot, 52S Seymour St., Vancouver. B.C.
Your card here would
ensure it being seen by
the principal financial
and commercial interests
in Canada. Asli about
special rates for thispage.
WE BUY
WE SELL
Chauvin, Allsopp & Company, Limited
FARM LANDS
And other good property. EDMONTON DISTRICT.
VALUATORS
Ground Floor, McLeod Building Edmonton, Alta.
McARA BROS. & WALLACE
INVESTMENTS' INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Elxchange
Calgary, Alta.
A. J. Pattison Jr. & Co.
.Members
Toronto Stock Exchange Montreal Stock Exchange
Specialists Unlisted Securities
106 BAY STREET - - TORONTO
THE MONETARY TIMES
Volume 66
NEWS OF INDUSTRIAL DEVELOPMENT
Ontario (iovernment Advertising Timber Limits — Will Mean
Another Pulp Mill — Port Arthur Iron Properties Have
Been Transferred — Flour Mills Operating on
Partial Time
A PULP and paper mill in the district of Algoma, north
of the transcontinental railroad near the Thunder Bay
border line on the James' Bay height of land is almost certain
to be established before the duration of very many months.
The Ontario government is now asking tenders, which vcill
be received up to June 15, for the right to cut pulpwood and
pine timber in a large area situated near the Nagagami
River, which would likely be the place for the erection of a
mill. One of the conditions of tendering is that the success-
fur tenderer must build a pulp and paper mill near or on the
territory referred to, and no tenders are being accepted unless
accompanied by a marked cheque for $50,000, which will re-
main on deposit until such a mill is built.
The Naswaak Pulp and Paper Co. has closed its plant at
Fairville, N.B., for an indefinite period. Two hundred and
seventy-five men were employed by the company. The reason
given for the proposed shut down is that the company wants
to make necessary repairs on machinery and give the plant
a thorough overhauling.
An added impetus to the clearing of land by settlers is
contained in the announcement that a stump using industry
is to be established in the province of British Columbia.
Small portable mills are being sent to various districts which
cut up the stumps, securing on an average 200 slabs an
inch thick from each root. The wood takes a good polish
and will be used for chairs and other furniture. As much
as $1,800 has been obtained for a sliced stump.
Flour Mills on Part Time
Owing to the lack of export orders, there is little im-
provement as yet noticeable in the western milling trade.
None of the mills are running more than partial time. So
far as the British market is concerned millers state there
is no indication as to when the old country will be open to
buy, and doubtless much will depend upon what use the large
shipments of Chinese flour can be put to. Information on
this side is to the effect that this has run into hundreds of
thousands of barrels. It is significant, however, that one of
the prominent London millers has refused positively to use
it, and it is expected that his example may be followed by
many others. If this flour is used for such purposes as hog
feed it may mean that the United Kingdom buyers may be
coming into the market at an earlier date than was antici-
pated some little time ago.
The Harris Milling Co., Taber, Alta., which has not been
operating for some time past, has begun grinding again, and
will continue its milling facilities as before.
Plans for the establishment of potato flour mills are
being formulated by the Potato Growers' Association of the
Edmonton district.
Repi-esentatives of the Rideau Milling Co. appeared be-
fore the Smith's Falls, Ont., town council last -week, seeking
municipal assistance toward the conversion of the flour mill
there into a cold storage plant. It is claimed that the
milling business can no longer be carried on at a profit.
Iron Properties Transferred
The Port Arthur, Ont., council has ratified a deal where-
by the National Trust Co., trustees for the bond holders who
loaned money on bonds to the Mackenzie-Mann interests,
sells to Chester K. Quinn, of Duluth, the Atikokan mine for
$1,500,000. The mine is situated 130 miles west of Port
Arthur, and is one of the biggest iron properties on the
continent. It was announced that all the other bondholders
had agreed to terms of the sale and that approval by Port
Arthur meant completion of the deal, which will be followed
by development and shipment of ore by the new owner. Port
Arthur had invested $200,000 in the mine and blast furnace
in order to assist in the establishment of the industry here
some years ago. The city gets its $150,000 invested in the
mine, but still retains its interest in the blast furnace.
Announcement is made that the Borden Co., Ltd., will
re-open its milk factory in Truro, N.S., on March 15. The
factory has been closed since the first of the year. All
Borden factories in Canada and the United States are now
in operation, except the one mentioned. When the Truro
factory re-opens it will run full capacity.
The Manitoba Bridge and Iron Works has released 150
employees owing to lack of orders. ,
Absorbing most of the men who are out of work in the
city, the plant of the Dominion Sugar Co. at Chatham, Ont.,
has re-opened, manufacturing sugar from the cane. The
stafl" now employed is not quite so large as heretofore.
The Ford Motor Co. of Canada has reached its full pro-
duction capacity of 225 cars a day, and is operating with
its entire force of employees four days a week.
EMPLOYMENT CONDITIONS IN CANADA
Dominion headquarters of the Employment Sei'\ice of
Canada, Department of Labor, reports that during the week
ended February 5, there was a further decline in employ-
ment as reported by the 5,276 firms who made returns show-
ing reductions in their payrolls totalling 2,786 persons or
nearly one-half of one per cent. In seventeen industrial
groups there were additions to staffs totalling 2,570 persons,
but in sixteen groups there were contractions aggregating
5,356 employees. These figures do not include loss of time
due to strikes or lockouts.
Slightly increased activity was reported in New Bruns-
wick, Quebec, and British Columbia, while there were shrink-
ages in employment in the remaining provinces, the decline
of 1,242 persons in Ontario being the largest. For the fol-
lowing week however, that province anticipated having some
recovery, while m the other districts it was expected that
employment would remain practically stationary or else
show further reductions. Firms in every district registered
declines from the level of the employment they afforded dur-
ing the base week (January 17, 1920) the decrease of 39,599
employees or over 13 per cent, in Ontario being the most
pronounced.
During the week under review there were important
expansions registered by firms in savsonills, furniture, con-
fectionery, pickle, boot, shoes, pulp, paper, garment, hat,
cap, thread, yarn, cloth, hosiery and knit goods factories.
These additions to staffs were reported largely in Ontario
and Quebec, but there was also increased activity in the
British Columbia shingle and sawmills. The most decided
contractions in payroll occurred in railway transportation,
and in the vehicle, crude, rolled and forged and foundry
divisions of iron and steel. In addition there were substantial
losses in logging camps, glass factories, coal and metallic
ores, mining, local transportation, highway and railroad con-
struction. In the last named, the decreases are partly at-
tributable to seasonal causes, while those in logging reflected
the commencement of the period of inactivity between cutting
and river driving operations. The losses in the above groups
were widespread in application, but those in Ontario, Quebec
and Manitoba were especially substantial.
BEAVER FIRE INSURANCE COMPANY
In the annual report of the Beaver Fire Insurance Com-
pany, with head office in Winnipeg, emphasis is given to the
fact that this company invests all its funds in Canadian
securities or in first mortgages on Canadian properties. At
the close of the year investments totalled $339,369, made 'up
of bonds and debentures. $252,963, and mortgages, $86,406.
Assets now total $397,892. The surplus available for policy-
holders amounts to $316,794, and includes paid-up capital,
$216,360, and net surplus of $100,434.
March 11, 1921
THE MONETARY TIMES
29
The Imperial
Guarantee and Accident
Insvirance Compsoiy
of Canada
Head Office, 20 VICTORIA ST., TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $200,000.00
Authorized Capital - • $1,000,00000
Subscribed Capital - - - $1,000,000.00
Government Deposits $111,000.00
LONDON
GUARANTEE AND
ACCIDENT COY., Limited
Head Office for Canada - Toronto
jyers' Liability, Elevator, Contract. Personal Accident. Fidelity
Guarantee, Internal Revenue. Sickness, Court Bonds,
Teams and .Automobile.
AND FIRE INSURANCE
The Western Mutual Fire
Insurance Co.
Head Office
Didsbury, Alberta
President—
-H. B. ATKINS
M.L.A.
PARKER R. REED.
LARGEST ALBERTA
Miinasing Director
FIRE MUTUAL
CANADIAN STRONG
PROGRESSIVE
FIRE INSURANCE
AT TARIFF RATES
Merchants Casualty Co,
Head Office : Winnipeg, Man.
The most progressive company in Canada. Operating under the
supervision of the Dominion and Provincial Insurance Departments
liiiihracin^i the entire Dominion of Canada.
SALESMEN
NOTE!
Hberal protectit
lofife
accident and health policy is the
I of St (10 per month and up.
Covers over 2.500 different diseases-
Pays for Life if disabled through Accident or
Illness.
Kifty per cent- extra if confined to hospital.
Pays for Accidental Death, Quarantine, Sur-
tieon Fees for minor injuries, also for death of
Benehciary and children of the Insured.
Good Openings for Live Agents
.Royal Bank BldR-.Tt
lectric Railway Chan
Winnipeg, M;.n.
Commercial Union Assurance Co.
Limited, of London, England
Capital Fully Subscribed S 14.750.000
Capital Paid Up 7.375.000
Total ."Intiual Income Exceeds 75,000.000
Total I'unds Hxceed -209.000.000
llciKl OMIir t'linnallRn llranrli :
COMMERCIAL UNION BUILDING - MONTREAL
H.ALBERT J. KERR. Assist .IKT .Man»i.eh. W. S. JOPLING. Managkh
Toronto Office • 49 Wellington Street East
GBO. R. HARORAPT. General Agent (or Toronto and County of York
iDiiiiiiiiiiiiiiiiimiiiiiimiiraiiM
■ 1
m a
I Automobile— 1 92 1 —Season |
m '. 1
I Policies to cover ANY or ALL motoring risks |
I ATTRACTIVE AGENCY CONTRACTS I
British Empire Fire Underwriters
82-88 King Street East, Toronto
Assets Exceed $4,000,000
Thousands Will Benefit
THREE Years ago the Northwestern Life
Assurance Company, in keeping with its
progressive policy, inaugurated, for the
iTst time in Canada, Life Assurance Without
Medical Examination.
Three years has justified this courageous inno-
vation, and today other companies are following
our lead — selling policies Without Medical
Examination.
The wonderful benefits of Life Assurance are
universally acknowledged. The Northwestern
Life is justly proud of having been first in
Canada to place these benefits within reach of
thousands who would otherwise have gpne
through life without provision for the future.
Other offices take only $1,000 — we take up to
$2,500 Without Medical Examination.
The Northwestern is a good company to insure
in. and a good company to represent.
HEAD OFFICE:
166 Donald Street, Winnipeg
Phone A. 5637-8
IbjMORTM
ASSURANCE
ERN LIFE
COMPANY
THE MONETARY TIMES
Volume 6G.
NEW INCOKI'OKATIONS
Total Capital for Week Ended March 8 is $25,351,300, Com-
pared with $17,851,000 Previous Week
Authorized capital of $25,351,300 is represented by com-
panies whose incoi-poration was reported to The Monctan
Times (luring the week ended March 8, compared with $17,-
851,000 the previous week. A comparative summary by pro-
vinces is as follows: —
Week ended Week ended
March 1. March 8.
Dominion $ 3,848,000 $11,895,000
Alberta 1,766,000
British Columbia 184,000 760,000
Manitoba 245,000 5,310,000
New Brunswick 107,400
Ontario 10,205,000 6,141,000
Prince Edward Island 340,000
Quebec 1,263,000 1,077,900
Saskatchewan 60,000
Total $17,851,000 $25,351,300
The following is a list of companies recently, incorporated
under Dominion charter, with head office and authorized
capital: —
Payne Sales Co., Ltd., Montreal, $20,000; James Stewart
and Co., Ltd., Wnnipeg, $500,000; Russell-MuiTay Cocoa
Mills, Ltd.. Montreal, $100,000; Photo-Kraft Studios, Ltd.,
Montreal, $50,000; Brouillette-Stanway Signs, Ltd., Montreal,
$25,000; George H. Rogers Co., LW., Ottawa, $200,000; Uni-
versal Fuel Saving Co., Ltd., Montreal, $50,000; the Julien
Fur Dressers and Dyers Co., Ltd., Hull, $50,000; Bond In-
vestments, Ltd., Windsor, $500,000; Realties and Agencies,
Ltd., Montreal, $150,000; Railway Bonds and Investments,
Ltd., Montreal, $500,000; Clark Steamship Co., Ltd., Quebec,
$1,000,000; Raclcott and Tremblay, Ltd., Montreal, $150,000;
Sanator, Ltd., Montreal, $350,000; Heart Stooker Co., Ltd.,
Edmonton, $2,000,000; Lloyd Sales, Ltd., Montreal, $50,000;
Abevley Knitting Mills, Ltd., Toronto, $50,000; Hamilton Pro-
ducts, Ltd., Hamilton, $1,500,000; Mount Royal Milling and
Manufacturing Co., Ltd., Montreal, $1,000,000; Hart Battery
Co., Ltd., St. Johns, $450,000; Masson, Forget and Cie, Ltd.,
Montreal, $100,000; L' Association de I'Economie, Ltd., Mont-
real, $200,000; New Windsor Hotel Co., Ltd. (amended notice),
$3,000,000.
British Columbia. — Twinplex Advertising Co., Ltd., Van-
couver, $10,000; Williams, Stanner and Harte, Ltd., Victoria,
$20,000; Superior Shingle Co., Ltd., Chilliwack, $20,000;
Prince Rupert Insurance Agencies, Ltd., Prince Rupert, $10,-
000; Canadian h-on and Steel Smelters, Ltd., Vancouver,
$500,000; United Engineering Works, Ltd., Victoria, $5,000;
Alberta Wood Yards, Ltd., Vancouver, $10,000; Marie Thomp-
son Investments, Ltd., Vancouver, $25,000; Sunset Seed Co.,
Ltd., Saanich, $100,000; Ensenada Commercial Co., Ltd.,
Vancouver, $50,000; New Brunswick Club, Ltd., Vancouver,
$10,000.
Manitoba.— J. F. McKenzie, Ltd., Winnipeg, $100,000;
Canadian Mining and Leasing Corporation, Ltd., Winnipeg,
$5,000,000; Bethany Farmers' Elevator Co., Ltd., Bethany,
$20,000; Bear Lake Ranch Co., Ltd., Benito, $50,000; Claren-
don, Ltd., Winnipeg, $20,000; Western Chemical Co., Ltd.,
Winnipeg, $50,000; Thistle Curling Club, Ltd., Winnipeg,
$20,000; Canadian Hotel Supplies, Ltd., Winnipeg, $50,000.
New Brunswick. — Rodstin Investment Co., Ltd., St.
John, $10,000; G. C. Raworth and Sons, Ltd., Port Elgin,
$49,000; Maritime Construction Co., Ltd., St. John, $49,500;
Allan Consti-uttion Co., Ltd., Old Ridge, $49,000; J. Pat
Smyth. Ltd., Green River, $49,900.
Ontario. — Waupoos Rural Cheese and Butter Co., Ltd.,
M'aupoos, $8,000; Thomas Jones and Son Co.. Ltd., St. Cath-
arines, $40,000; Northern Advance, Ltd., Barrie, $40,000;
Wingham Creamery Co., Ltd., Wingham, $60,000; Ontario
Produce Co., Ltd., Toronto, $40,000; Springstead's Bakery,
LUl., Hamilton, $40,000; Federal Cold Storage and Ware-
housing Co., Ltd., Toronto, $100,000; J. O. Duke Seed Co.,
Ltd., Ruthven, $60,000; Robinson Lumber Co., Ltd., Fort Wil-
liam, $100,000; Shackleton Pulp and Lumber Co., Ltd., To-
ronto, $50,000; Industrial Products, Ltd., Toronto, $40,000;
Baltic Trading Co., Ltd., Toronto, $1,000,000; Cressy Dairy
Products Co., Ltd., Picton, $8,000; Thrift Dry Goods Shops,
Ltd., Toronto, $50,000; Factory Securities, Ltd., Toronto,
$40,000; Building Supplies, Ltd., Toronto, $40,000; Prudential
Financiers, Ltd., Toronto, $100,000; Silverwood's, Ltd., Lon-
don, $1,000,000; Cities Service Oil Co., Ltd., Hamilton, $5,000;
Artistic Costume Co., Ltd., Toronto, $40,000; McQuay-
Norris-Banfield Co., Ltd., Toronto, $50,000; Graham, Sanson
and Co., Ltd., Toronto, $40,000; Herald Publishing Co., of
London, Ltd., London, $40,000; Westminster Realty Co., Ltd.,
Toronto, $650,000; Maisonville Mining Co., Ltd., Toronto,
$2,500,000.
Quebec. — La Compagnie Electrique du Nord, Sainte
Anne de Chicoutimi, $49,000; Gold Glove Works, Ltd., Mont-
real, $9,900; St. Lawrence Lumber Co., Ltd., Quebec, $1,000,-
000; Laurier Social Club, of Montreal, Montreal, $19,000.
Saskatchewan. — Readlyn Social Hall Co., Ltd., Readlyn,
$5,000; Ellard and Moffatt Co., Ltd., Mortlach, $5,000; Sas-
katoon Hide, Fur and Produce, Ltd., Saskatoon, $20,000;
Saskatoon Investment Co., Ltd., Saskatoon, $20,000; Kubanka
Farming Co., Ltd.. Saskatoon, $10,000.
INSURANCE LICENSES AND AGENCY, NOTES
Having already secured a Dominion license, the Mer-
chants Casualty has been registered to transact the busi-
ness of insurance of automobiles against fire in the province
of British Columbia. The head office for the province is at
Vancouver, and J. B. Love is &ttorney for the company.
A blanch office of the Motor Union Insurance Co., Ltd.,
has been opened. at 17 St. John St., Montreal, as from March
1, under the control of Gerald Ballard as resident manager.
Mr. Ballard was previously inspector attf.'Ched to the chief
office, Toronto. Harold Hall has also been promoted resi-
dent manager for the company at Winnipeg. Mr. Hall is at
present attached to the chief office st&ff at Toronto, and will
shortly proceed to Winnipeg to open a^nd organize the Mani-
toba branch.
The Motor Union will shortly further extend its opera-
tions to embrace personal accident and miscellaneous public
liability lines.
T. B. Parkinson has resigned his position as manager
of the Aetna Life for Western Ontario and has become
manager of the home office &gency of the Northern Life. Mr.
Parkinson has had considerable head office experience, having
been superintendent of agencies for the London Life and
later for the Continental Life.
Benjamin A. Cornell has been appointed district agent
of the Continental Life at Goderich, Ont. Mr. Cornell has
been connected with the Gerh&rd Heintzman Piano Co. for
15 years.
William G. Smith, at present branch manager at Ham-
ilton for the Scottish Metropolitan, is leaving that position
on March 15 to join the organization of Carl J. Jennings,
insurance brokers at Hamilton, Ont. Mr. Smith was formerly
with the C.F.U.A. at Toronto.
The Toronto office of the Travellers' Life of Canada has
been moved to Dominion Bank Building, corner of Bay and
Queen Streets. The newly appointed inspector for Ontario,
W. A. Hines, has his headquarters at this address, and for
the present is devoting his time to Toronto business along
with B. Siegler, w-ho is the Toronto representative of the
company.
R. G. Grieve, formerly of McClory a.nd Grieve, provincial
managers at Edmonton, Alta., has removed from Vancouver,
B.C., to Saskatoon, Sask., and entered upon his duties as
district manager of the Continental Life for Northern Sas-
katchewan.
Maich 11- 19i:i
THE MONETARY TIJIES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its mott j ' ' Solid as the Continent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
C(
rrespond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID AS THE CONTINENT"
HEAD OFFICE TORONTO
Important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE WINNIPEG, MAN.
Assurances, New and Revived - - $1,211,447.00
Premiums on same .... 4.3,890 00
Assurances in Force - 3,458,939.00
Total Premium Income 109,586.03
Policv Reserves - 211,497.00
Admitted Assets . - - . 296,430.62
Average Policy - - - - - 2.237,50
Collected in cash per $1,000 insurance in force 31 .75
For particulats of a good agency apply to
ADAM REID, Managing Director - - Winnipeg.
Fifty- one Years of Steady Progress
One of the most brief yet impressive histories of Canadun financial in-
stitutions IS coniainedin the annual record of 1 he Mutual Life of Canada-
The current issue will be ready in a few days. A copy will be sent to you
on application. It contains fifty-one successive summai ies, showing in
the parallel columns the incrt:ase from year to year of the company's
various receipts, expenditures, etc. No other document could better
convey the idea of solid, uniform achievement, and the momentum of the
advance is now greater than ever. The prospects are bright for a still
more rapid ex-'ansion within the next few years The assets of the com-
pany exceed $40,000 000. :<nJ the assurances in force have reached
?20fi.000 000. There ii a gross surplus of more than five million dollars
over and ab ive the amount necessary to guarantee all policies, so that
the position of the company, in spite of the strain of recent years, is one
of uncommon strength.
The Mutaal Life Assurance Co. of Canada
Waterloo Ontario
CO-OPERATIVE SERVICE
']'0 PolicyhcldiTS bttwi-in the Conip:iny and the Aucnts is the secret of our
sinjcc'is i;very represtnt.itive is Kncn the utmost .issistancc. but he must
look after our clients' interests. DurinK the last '.il years The CoolincDUl Life has
built an enviable reputation for prompt payment of claims.
Write lor booklet. "Our Beil Adierliun." For .ManaiJers positions in
Ontario. :ip|ilv with references. statinK experience, etc.. to S. S. WEAVER. Eailern
SoperiDtenileiil. at Head Office.
THE CONTINENTAL LIFE INSURANCE CO.
Head Office
TORONTO. ONTARIO
ENDOWMENTS AT LIFE RATES
issitu ONLY nv
THE LONDON LIFE INSURANCE CO.
Head Office ... LONDON, CANADA
Profit Results in this Company TO°„ better than Estimates.
POLlCIR<; GOOD AS GOLD."
HARD TIMES"
Some men make the picas pf hard time^fan excuse for not insuring
their lives.
They forget that if hard times affect them so much, how much
more keenly wo.ild wife and family feel ihe pinch were the bread-
winner to be removed. Then times \\ouId be hard indeed.
In times of prosperity and m times of comparative stress. Life
Insurance is the one certain way nf making provision for an uncer-
tain future. \Vh.Ttever happens the investment is a good one and
can never be influenced b> financial storms.
The Great-West Life Assurance Company issues Policies to meet
every insurance need. The rates arc low, and the profit returns to
Policyholders exceptionally high- For full details addiess. stating
age next birthday.
THE GREAT- WEST LIFE ASSURANCE COMPANY
DEPT. " K"
HEAD OFFICE - - - WINNIPEG
.\sti for a Great-West Memo Book — Free on request.
The Western Empire
Life Assurance Company
Head Office: 701 Somerset Building, Winnipeg, Man.
SASKATOON
Offices
EDMONTON
VANCOUVER
FARMERS'
FIRE & HAIL INSURANCE COMPANY
FIRE, HAIL AND AUTOMOBILE INSURANCE
Head Office, CALGARY. Saskatchewan Office, REGINA
M. P. JOHNSTO.V. Managlns Director
Northwestern
Mutual Fire
AssociatioD
SEATTLE WASH.
Head Office
for Canada
, Hamilton, Ont. As
ets over $1,700,000
Writin
; Fire Insurance at C
ost
All Pc
licies div.
dend paying and non-assessable. |
NORMAN S.
JONES. Ms
naser R J. MA
HONV.AsstManaRer |
GENERAL
ACCIDENT F I R E AND LIFE
ASSURANCE CORPORATION, LIMITED, OF PERTH, SCOTLAND
FELEG HOWLAND. THOS. H. HALL.
Canadian Advisory Director Manager for Canada
Toronto Agents. E. L. McLEAN, LIMITED
32
THE MONETARY TIMES
Volume 66
News of Municipal Finance
Several Cities Fix 1921 Tax Rates Well in Advance of Last Year— Windsor Hydro Had Surplus —
Calgary to Reimburse Sinking Fund by Issue of Securities — Halifax Exemptions Reach High Figure
Sydney Mines, N.S. — A SVz per cent, tax rate has been
fixed by the council for 1921.
I'eterboro, Ont. — A tax rate of 36..3 mills, as compared
with 35 mills last year, h&s been adopted by the council.
Port Arthur, Ont — The tax rate for 1921 is 41 mills, as
compared with 37 mills last year.
Niagara Falls, Ont. — The city council, despite close
trimming of estimates, has been compelled to increase the
tax rate (5.1 mills to 38.6 mills.
Gananoque, Ont. — Forty-seven mills on the dolla^r is the
tax mte fixed by the town council for 1921, being an increase
of five mills over last year.
Brantford, Ont. — A tax rate of 39 mills based on assess-
ment of $25,000,000 and with receipts placed at $994,120, has
been recommended by the estimate committee. The assess-
ment in 1914 w:-.s .$11,000,000 and receipts $284,404.
Brockville, Ont. — Thii-ty-seven and one-half mills is the
tax rate approved by the town council, this being an increase of
half a mill over last year's rate. Increased school expendi-
ture of $11,800, estimated expenditure of $5,000 for mothers'
allowances, and increase in payments on debentures, caused
the rf,'te to rise.
Calgary, Alta.. — In 1913, the city's assessment on lands
totalled $120,801,588, whereas the 1921 figures will be ap-
proximately $47,319,024, which is & reduction of 10 per cent,
when compared with 1920. Assessment of buildings, which
is on a basis of 50 per cent, of their value, will total about
$21,000,000 for 1921.
London, Ont. — At a recent meeting of the finance com-
mittee, Mayor Little, Aldermen Watkinson, Wenige, J. Cam-
eron Wilson, Treasurer Bell, and Harvey F. Skey, of the
Bank of Montreal, and F. G. Jewel, accountant, were named
a committee to repoi-t on establishing a depreciation fund
for civic financing. By this method, proposed by Dr. Wilson,
ea.ch public work undertaken by the city will not only be
paid for in a term of years, but it will have an accumulation
to replace it at the end of that time.
Windsor, Ont. — A net surplus of $81,520 is shown by the
hydro-electric commission of the municipality. Earnings
amounted to $443,474 and expenses $346,183, while $15,771
was charged against depreciation of plaint. Plans are being
prepared for the erection of an addition to the present sub-
.-itation at a cost of $175,000, which will have an ultimate
capacity of 20,000 h.p.
The. assets of the system at the end of 1920 were $945,-
(i08, while a yer,.r previous the figures were $578,413, an in-
crease of $367,195. Of this amount $190,000 was due to the
acquiring of the S. W. and A. Lighting and Power System.
Point Grey, B.C. — The municipality had a surplus of
$200,000 over its current liabilities at the end of 1920, ac-
cording to the report of the municipal auditors just issued.
This is an improvement of $7,635 over the previous year. A
total surplus ol assets of $935,249 over ail liabilities is also
shown. The general assets are given as $7,519,013 and the
liabilities as $6,583,764.
Chiefly due to realization of tax arrears and subsequent
expenditure on capital account, the auditors state a reduction
of $38,808 was affected during the year in the debt due from
revenue to capital account. A cheque for $60,000 received
from the pi'ovincial government, as part payment of the ar-
rears of taxes due on pi'operty reverted to the Crown, was
also received r^nd a part of it used to wipe off' a demand loan
of $30,000 outstanding at December, 1919.
Calgary, Alta. — With but two dissenting votes, the city
council has adopted the recommendation of the city treas-
urer and the city auditor that the sinking fund be reim-
bursed for $165,000 due to it for loans made on five city
blocks taken over in the recent tax seJes, by having the city
take over this burden from the sinking fund and issue bonds
of 5 per cent, interest, payable ten years from Januai-y 21,
1921. The dissenters wanted to know if the sinking fund's
reimbursement would not still be on paper — in the form of
bonds — to which Treasurer Mercer replied in the affirmative,
but explained that the treasury notes, which were being put
in the sinking fund would have the whole city behind them.
The treasury notes would in turn have the property behind
them, and the earnings of the property would off'-set the 5
per cent, interest, so that there would be no extra charges in
the mill rate. All the property was revenue-producing, ex-
plained the treasurer, but none of it was paying for itself at
the present time. The first thing it would have to do would
be to pay $10,000 in taxes, and he could not see why the
sinking fund should have to stand for this. Bondholders
consider the city securities good, but they do not have any
faith in the property, he said.
Halifax, N.S. — According to a report prepared by P. J.
MacManus, chief city assessor, there is in Halifax a total
of $30,659,000 worth of land and improvements exempt from
civic taxation. This includes the city's own property, amount-
ing to $1,552,000, and city schools, amounting to $2,216,500.
If these were taxed, of course, it would only mean the city's
taking money out of one pocket and putting it into another,
but outside of these Mr. McManus estimates that the city
■would be three-quarters of a million dollars a year richer if
there were no exemptions.
By far the largest owmer of exempted property is the
Dominion government, and, as a l&rge part of this is rail-
way property which may be taxed some day, there is some
hope of converting that part of the exempted property into
a civic revenue producer. One of the largest items in the
assessor's report is "miscellaneous," which is largely made
up of private concerns and institutions which pay taxes on
part of their valuation, but are exempted as to other parts
hy various legislation passed from time to time.
EASTERN TRUST COMPANY
Coming from the report of one of the most important
and progressive trust companies of this country, the growth
recorded by the Eastern Trust Company is not surprising.
Assets during 1920 increased from $23,2^1,221 to $26,316,713
(this does not include properties held under deeds of trust
to secure bondholders), and during that time estates and
funds to the amount of $835,204 wei-e, owing to the closing
of estates and expiry of the trusts under which they were
held, distributed to the beneficiaries and wi-itten off.
In spite of the fact that charges of the services of trust
companies have not increased in recent years, while cost
of operation has shown a large advance, the company is able
to show profits of $140,137, as compared with $131,766 in
1919. The dividend of 9 per cent, was maintained, and, ac-
cording to an announcement made at the annual meeting in
Halifax this week, the rate will be increased to 10 per cent.
The company's operations are carried on largely in the
Maritimes, and it is the policy of the company to use its
funds for investment purposes in the px-ovince in which they
originate, so that a double service is being performed in the
territory in which it carries on business. The following com-
parative figures are illuminating: —
Capital Net Estates
paid up. Reserve. profits. in trust.
1893 $ 26,400 $ 979 $ 41,860
1903 125,000 $ 12,000 11,425 1,9.38,942
1913 904,000 210,000 86,248 12,978,780
1920 1,000,000 350,000 140,137 26,316,713
March 11, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
n(NISSERW)ODv<°G>MmNr
INVC4TMENT BANKCR*
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
STOCKS AND BONDS
Canadian. British and American Securities
Bought and Sold on all Principal Exchanges
PHoate ulirc connecliom with New York and Toronto
OSLER, HAMMOND & NANTON
WINNIPEG
PROVINCE OF ONTARIO
6;o COUPON BONDS
Due February 1st, 1941
PRICE : 100 AND INTEREST
Harris, Forbes & Company
INCORPORATED
C. P. R. Building 21 St. John Street
TORONTO MONTREAL
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur BIdg., WINNIPEG, Canada
Memberi of Winnipeg Real Estate Exchange. Winnipeg Stock Exchange
C. H. BURGESS & CO.
Government and
Municipal Bonds
14 King Street East
Toronto
ACCOUNT BOOKS
Loose Leaf Ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
Exceptional —
— both for safely of principal and surety of
return is this
7% Canadian Industrial Bond
with a bonus of Common Stock payable in New
Vorlt funds.
Ask us for full particulars
R. M. HEFFERNAN & CO., Limited
INVESTMENT BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
THE MONETARY TIMES
Volume 66.
Government and Municipal Bond Market
Victory Bonds Less Active and Slightly Reactionary — Dominion Government
Will Pay Off New York Loan Which Matures in April— Gold Will Have to be
Shipped— Manitoba Sells Farm Loan Securities for Disposal in the United States
TEMPORARILY, the government and municipal bond Belleville, Ont.— It is understood that the city has $90,-
market is suffering from a slight attack of indigestion. 000 6 per cent. 20-year paving debentures for sale.
This is not surprising in view of the large volume of securi- ^hree Rivers, Que.— Tenders will be received until March
ties which have been issued of late. In February alone, bond 15^ ^921, for the purchase of $2.50,000 6 per cent. Roman
sales amounted to approximately $9,500,000, while already Catholic school debentures.
in March numerous issues have been made with prospects of ,, j ^ m , ■,, , • , ^-i „» , ,r
, . u J rr,, ill 1 t ^ iu i Verdun, Que. — Tenders will be received until March 15,
plenty more ahead. There is still a large part of the recent ,_„_ j; i, ^ iM-cnnn f ^ ,n tj
rr \ < 111 i iu ij juiii 1921, for purchase of $1(5,000 6 per cent. 10-vear Roman
Toronto loan, which has not yet been placed, and bond deal- ^ .,,-,,,, ,
., • 4. i ti • o^ iu • u J mi. Catholic school debentures.
ers seem rather anxious to get this off their hands. The
situation has also been influenced by the large amount of Caledonia Township, Ont— According to reports the town-
new industrial financing which has been done of late. ship is asking for bids on $50,182 6 per cent. 20-instalment
Notwithstanding this fact, however, prices have not been debentures. No date is mentioned. C. F. Proudfoot, Fenagh-
impaired to the degree which one would have supposed, vale, is treasurer.
although if the situation does not improve more conservative EUice R.M., Man. — Tenders are invited until 2 p.m.,
bids will be made by the bond houses. During the past March 19, 1921, for $49,000 6 per cent. .30-year good roads de-
week, two Manitoba municipalities, with the guarantee of bentures, guaranteed by the province of Manitoba. J. E.
the provincial government, disposed of securities at prices Selby, St. Lazare, Man.
considerably above previous figures. St. Thomas, Ont., also Quebec, Que.— Tenders will be received by the Roman
made a loan on about a 6.10 per cent, basis. Several Quebec Catholic School Board up till noon, March 21, 1921, for the
municipal issues, aggregating more than $3,000,000, are pend- purchase of $700,000 bonds. Alternative bids are asked on
ing, but the probability is that they will be absorbed locally. .30-year 5% per cent., and 10-year 6 per cent, securities.
Victory bonds were not quite so active, with prices in Montreal. Que.-Tenders" will be received until 5 p.m.,
some cases fractionally lower. The following figures illus- ^^^^.^^^ ^^^ ^gg^^ f^^ ^1^^ purchase of $1,500,000 6 per cent,
trate the recent trend of prices:- ^^^.5^, ^^^^^ ^^ ^^^ Protestant Board of School Commission-
Control Last week. This week. ers. Full particulars upon application. C. J. Binmore,
price. High. Low. High. Low. treasurer, 36 Belmont St., Montreal.
]lf^ II ll'''^ ^^ 11^ 11'"^ Montreal West, Que.— The town is offering for sale until
Jnov ii qq% IL o^t iL 5 p.m., March 21, 192;, $282,000 5V2 per cent, debentures as
;i;i OS qsa q7v qsv nL/ follows :-$117.000 30-years, for electric light; $14,000 10-
tlil, Zu lis Q8V QRV OS years, for fire apparatus and equipment; $85,000 20-years,
Q^f q"'^ q°J* ^^-^ r:^ ^° for pavements and sidewalks; $20,000 10-vears, for streets
tof: it o^v Q?v Q^v 0^1/ and public park; $20,000 40-years, for sewers ahd water
^^'^^ •'"^ •'"'^ ^^^* ^^^^ ^^ '^ system; $26,000 20-vears, for improvement of town hall, etc.
An official report from New York indicates that the Securities are in denominations of $100 and multiples there-
Canadian government will pay off the $25,000,000 bonds that gf. C. I. Fraser secretary-treasurer
mature there on April 1 next. Canada has rather large bal-
ances in New York at the present time, but paying off of this Debenture Notes
maturity will involve shipment of a certain amount of Can-
adian gold to New York. It is estimated that about $10,000,- Kent, B.C.— The district is preparing a $40,000 6 per
000 in gold will be sent cent. 20-year bond issue, which will be placed on the market
Manitoba sold $500,000 5 per cent. 5-year bonds farm shortly,
loan to the National City Co., Ltd., this week, at a price of Kent County, Ont.— More than $500,000 will be spent on
100.566. This is the first provincial issue in more than a ^^^ county roads m 1921.
month. The bonds are payable in New York and were dis- ^Voodstock. Ont.— The city council has decided to submit
posed of there at 90.25, to yield the investor 7% per cent. ^ $65,000 hospital by-law.
Winnipeg, Man. — On .\pril 5, 1921, ratepayers will be
Coming Offerings asked to vote on a $2,000,000 school by-law.
The following is a list of debentures offered for sale, p^^x Border Utilities Commission. Ont.-It is under-
particulars of which have been given in this or previous ^tood that the commission has $44,000 worth of debentures to
issues-— place on the market.
Tenders Whitemouth, Man. — On March 16 next, electors will be
Borrower. Amount. Rate %. Maturity. close. "^^^'^ !° ''°t^™ « «25,000 6 per cent. 30-instalment debenture
Burnaby, B.C $131,700 6 Various Mar. 14 issue for bridge purposes
Sherbrooke, Que 513,000 6 10-years Mar. 14 ^^ast Angus Que.-The town council has passed a by-law
Montreal P.S.C, Que. 1,500,000 6 Serial Mar. 16 authorizing the borrowing of $12,000 for fire equipment, and
IT J r\ i~c rvAn ,- in i\T i r On March li, ratepayers will be asked to approve.
Verdun, Que 1 (5,000 6 10-vears Mar. 15 ,, , , ,^ „ , ■ , , ,
Three Rivers, Que. . . 250,000 6 . . ." Mar. 15 ^^ Montreal. Que.-Power to borrow any sum needed for
Ellice R.M., Man. . . . 49,000 6 30 vears Mar. 19 the development of the city water works systeni is sought
St. Lambert, Que. . . 500,000 6 30-years Mar. 20 m an amendment made by the Administrative Commission
Montreal West, Que.. 282,000 5^ Various Mar. 21 for insertion m the special bil the coniinissioners have sub-
Quebec C.S., Que. .. . 700,000 . Optional Mar. 21 mitted to the provincial legislature This action has been
Drumheller, Alta. . . . 28,000 7 20-instal. Mar. 26 taken because in the original bill references to the raising of
Pipestone R.M., Man. 80,000 Mar. 31 '"°'~« funds for the completion of the aqueduct improvements
Ti 11 11 /-> i nn nnn n e,n was not made, while the need for more money has arisen with
Belleville, Ont 90,000 b 20-years ,. ... . .. u ^u «r .t ti j u •
^ , , . ~ r\ i. cr, ino /■ n/i ■ ^ i the presentation of a report bv the Water Board showing
Caledonia Twp., Ont.. 50,192 (i 20-instal ..i ^ j.-^- i .i r a., . r.Ti aaa • • j
that an additional outlay of $14,522,000 is required.
St. Lambert. Que.— Offers are being asked until March Alberta. — The government is preparing to place another
20, 1921, for $500,000 6 per cent. 30-year debentures. domestic bond issue on the market, the amount suggested be-
March 11, 1921
THE MONETARY TIMES
35
Flexibility in Service
There is a freedom and a flexi-
bility to our Victory Bond Service
Department that commends
itself to those who have had
experience v^^ith it.
You, too, v^rill find this so if you
favour us with your orders to
buy or sell Victory Bonds.
Telephone enquiries especially
solicited.
Entrust us ivilh yuur order
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
i^>Ay.^Hw^w?^lEyBfw
iSfe^
mm«m!ik»^ mm «»■
stRvic:_^
/ IHYfSTHI
The Money
You Have
Worked For
is valuable only when you makt it
work for you.
One good way to make it work is
to buy a well-secured 8°o Preferred
Stock, offering security, high income-
yield and a prospect of substantial
profits from Common Stock Bonus.
We can recommend such a Pre-
ferred Siock. A letter, or a postal,
will bring you full particulars.
Royal Securities
^ ^CORPORATION
t. I M I -r E D
.MONTREAL
TORONTO HALIFAX ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. Eng.
^•S■^'y^■^l-■'^r^f'^ ^^ S^\y y~»'T^S'*'^5''«'^»'^»'^^^»^"»'^^^'^5^''7^
\V L. MlIvINNO.N
DEA\ H. PETTES
We Buy and Sell
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Government and Municipal Bonds
McKINNON BUILDING -:• TORONTO
Telephone Adelaide 3870
^
^
Howard Smith Paper Mills Limited
7:, Gold Bonds. Due Jan. 2nd. 1941
at 91 and Interest, Yielding 7.90%
Principal an<J Interest of those Bonds are payable
in New York fund*. As long as New York (unds
continue at the present level.
The Yieia would be Over 8.50'..,
Send for Prospectus.
R.. A. I>ALY & Co.
BA.\K OK TORONTO BUILDING
TORONTO
^
E^
City of Toronto
6% Bonds
Maturities 1936 to 1940
At Par
DENOMINATIONS $1,000
Orders majj be Vfired or telephoned
at our expense.
W. A. MACKENZIE & CO.
Covcrnmcni ami Municipal Dondi
Corporation Secarilics
42 KING STREET WEST
TORONTO - CANADA
THE MONETARY TIMES
Volume 66.
ing $2,000,000. Of the first million offered last June $900,-
000 has now been sold, and it is expected that the balance
will be disposed of within the month. The government is well
satisfied with the results of its experiment in selling bonds
to home buyers, and its decision to put on another sale has
been made partly in view of the fact that the ground has
now been prepared by advertising.
Saskatchewan. — The following is a list of authorizations
granted by the Local Government Board from February 12
to 26, 1921:—
Schools. — 10-years annuity, 8 per cent.: Westwood, $2,-
000; Rockwood, $3,200; Old Trail, $2,000; Clarkville, $3,000;
Newton, $5,500; Flowerydale, $1,215; Edenview, $500;
Vernon, $1,500; Frolich, $2,280; Beyer Lake, $5,000; Kipling,
$5,000; Johnston Lake, $3,800; Pleasant Ridge, $1,000. Belle-
plaine, 20-years annuity, 8 per cent., $15,000; Rotnum, $4,400,
15-years annuity, 8 per cent.; Grand Coulee, $7,000, 15-years
annuity, 8 per cent.; Mayronne, $1,000, 5-years annuity, 8
per cent.; Vickers, $4,900, 10-years instalment, 8 per cent.;
Mount Hope, $1,300, 10-years instalment, 8 per cent.; Wilmot,
$5,500, 15-years annuity, 8 per cent.; Sweet Grass, $800, 8-
years instalment, 8 per cent.
Rural Telephones, 15-years annuity, 8 per cent. — North-
wood, $12,000; Dilke, $2,000; Carruthers, $34,000; Wolverine,
$5,800; Flett Springs, $3,500; Fort Felly, $300 14-years an-
nuity, 8 per cent.
Villages. — Kandahar, $1,500 8 per cent., 7-years instal-
ment, for sidewalks and digging well; Pontlex, $7,000 8 per
cent., 10-years instalment, for fire protection.
Rural Municipality of Kingsley, $1,200 8 per cent. 10-
years instalment, for road construction.
Bond Sales
North Sydney, N.S. — The finance committee has accepted
the offer of the W. F. Mahon Co. of Halifax, for the pur-
chase of $10,000 worth of town bonds, with a 30-day option
on the remE^inder of $41,000. The company agreed to pur-
chase at 96.
Trail, B.C.^The city has accepted the bid of Gillespie,
Hart and Todd for $37,000 7 per cent. 20-year debentures at
96, which is a little less than a 7.40 per cent, basis.
Stratford, Ont. — The municipality has been selling its
debentures locally and has succeeded in disposing of $50,000
of bonds as follows :--$20,000 6 per cent. 30-years; $22,000
6 per cent. 10-years, and $8,000 15-years.
Point Grey, B.C.— The municipality has sold $156,000 de-
bentures to the Canada Bond Corporation and Harris, Read
and Co. For $73,000 5 per cent, debentures, due 1st August,
1953, a price of 78.40 was received, and for $83,000 5% per
cent, deebntures, due 1st August, 1959, a price of 84.49 was
received, or an average bid of 81.64. At these prices the
money will be costing the municipality 6.61 per cent.
AVoodlands R.M., Man. — The Mutual Life Assurance Co.
of Canada has purchased $20,000 6 per cent. 30-instalment
debentures, which are guaranteed by the province, at a price
of 96.13, which is on about a 6.35 per cent, basis.
St. John, N.B. — An issue of $54,000 6 per cent. 25-year
debentures have been disposed of by the school board trustees
to the Eastern Securities Co., Ltd., at 99.55, which is on
about a 6.50 per cent, basis. Bids were as follows: —
E&stern Securities Co., Ltd 99.55
Dominion Securities Corp 98.145
Wood, Gundy and Co 97.89
St. Andrews R.M., Man. — Wood, Gundy and Co. have
purchased $100,000 5% per cent. 30-instalment debentures
at a price of 91.81, which is on a basis of about 6.30 per cent.
The bonds are guaranteed by the province. Other bids re-
ceived were: —
R. C. Matthews and Co 90.70
Dominion Securities Corp 90.60
W. A. Mackenzie and Co 90.11
Manitoba. — The province has disposed of $500,000 5 per
cent. 5-year debentures, payable in New Ybrk, to the National
City Co., Ltd., at a price of 100.566. The money is being
raised for farm loan purposes. The list of bids includes the
following, the figures being in Canadian funds.: National
City Co., Ltd., 100.57; Dominion Securities Corporation,
100.29; A. Jarvis and Co., Morrow and Jellett, Canadian and
General Securities Corporation, 100.08; Wells, Dickie Co.,
and Minnesota Loan and Trust Co., 99.96; Wood, Gundy
and Co., 99.34; R. C. Matthews and Co., and First National
Co., Detroit, 99.05; R. A. Daly and Co., and W. A. Mac-
kenzie and Co., 98.87; McLeod, Young, Weir and Co., Han-
nah, Ballin and Lee (New York), and Rutter and Co. (New
York), 97.89; A. E. Ames and Co., 97.728.
New Toronto, Ont.-^Debentures totalling $58,000 bearing
interest at 6V2 per cent., and maturing in 20 years, have been
awarded to the Dominion Securities Corp., at 99.641, which
is on about a 6.58 per cent, basis. Other bids were: —
Jurner, Spragge and Co 98.17
R. C. Matthews and Co 97.08
C. H. Burgess and Co 97.00
United Financial Corp 96.03
Alberta. — Municipal hospital and school district deben-
tures to the value of $87,900 h&ve been bought and sold by
the W. Ross Alger Co. The several bond issues represented
in the recent sales comprise the following: Drumheller muni-
cipal hospital district, $28,000, 20-year 7 per cent, for exten-
sion and equipment of present hospital; Islay municipal
hospital district, $6,000, 10-year 7 per cent., for additional
equipment to hospital; Prairie River consolidated school dis-
trict, $13,000, 15-year 8 per cent., for new school building;
Alliance school district, $20,000, 20-ye&r 7% per cent., for
new school building and equipment; Zawale school district,
$550, 10-year 8 per cent, for new building; and the following
15-year 8 per cent.; Shelton school district, $4,000; Sangudo
school district, $4,000; Paraskeria school district, $7,400.
St. Thomas, Ont. — McLeod, Young, Weir and Co. have
been awarded $159,006.73 oVz and 6 per cent, bonds, maturing
from 18 to 30 years, a.t a price of 98.64, which is on about a
6.10 per cent, basis. The particulars of this issue were given
in these columns last week, but the original amount of $165,-
893.65 was reduced. Bids received were as follows: —
McLeod, Young, Weir and Co 98.64
Harris, Forbes and Co., Inc 98.29
Dyment, Anderson and Co 98.236
Housser, Wood and Co 98.12
Bell, Gouinlock and Co 98.12
Turner, Spragge and Co 97.97
R. C. Matthews and Co 97.03
United Financial Corp., Ltd 96.57
Wood, Gundy and Co 96.33
Dominion Securities Corp 96.311
C. H. Burgess and Co 95.84
W. A. Mackenzie and Co 95.817 • •
A. E. Ames and Co 95.11
A. Jarvis and Co 92.08
Bient, Noxou and Co 91.21
Saskatchewan. — The following is a list of sales reported
by the Local Government Board, from February 12 to 26,
1921 :—
Schools: Rouleau, $19,000 7 per cent. 30-ye»rs, locally:
Oxbow, $2,000 8 per cent. 10-years, locally; Rouleau, $11,000
7 per cent. 20-years, Nay and James, Regina; Belleville, $800
TV2 per cent. 20-years, S. K. Rymal, Kennedy; South Loverna,
$1,500 8 per cent. 10-years, locally; Marlin, $2,500 8 per cent.
10-years, H. J. Birkett and Co.
Rural Telephones: 15-years a-nnuity 8 per cent., pur-
chased by Clifton C. Cross and Co.: Springside, $2,000; Stel-
cam, $500; Herschel, $1,500; Banner, $1,800; Blaine Lake,
$18,300; Dunleath, $7,300; Bow Valley, $2,500; Dafoe-Cope-
land, $2,400; Blucher, $3,500; Doyton, $10,600; Lewiswyn,
$4,500; Elstow, $5,500; Mervin, $7,000; Atwater, $2,100; Scott,
$3,900; Winton Park, $1,200. Warrior, $15,000; Harris, Read
and Co. Bredenbury South, $5,500, locally. Follow Meade,
$800; J. Bui-nett, Regina.
City of Moose Jaw, $22,200 5% per cent. 15-years, locally.
Town of Assinboia, $13,500 8 per cent. 20-years. locally.
Bulyea Village, $400 8 per cent. 10-years, locally.
March 11, l!t21
THE MONETARY TIMES
$25,000
CITY OF HALIFAX, N.S.
Due Jul\) ht. 1953
Principal and sen
able at Toronto
BONDS
Denominalio
-annual interest pay-
Montreal, Halifax.
5/, 000
Price :
92.85 and accrued interest
YIELDING 6%
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX, N.S.
"Security First"
EXCELSIOR
INSURANCE LI FE COMPANY
HEAD OFFICE-
EXCELSIOR LIFE BUILDING
Adelaide and Toronto Streets
TORONTO - CANADA
Western Municipal & School
Debentures
TO YIELD
6%
7m
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
NVITED
UNION TRUST BUILDING
WINNIPEG
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cahle Address. Topcco. Western In. and A,I5 C , .Sth Edition
CALGARY, CANADA
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C H. MACAl I.AV
J P. NICOI-LS, .\n
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches— SASKATOON AND CAI.dAin
4 r.rc.nt Winchester St., E.(
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
Investment Holders
Increase Your Income With Safety
We request you to send us. without obligation, a
list of your holdings.
We may be able to suggest a method of increasing
your income without decreasing your security.
Your InvcslinenI Dusineis aill he appreciatej
Gillespie, Hart & Todd, Ltd.
Head Office
711 FORT STREET,
VICTORIA, B.C.
Branch
414 PENDER STREET,
VANCOUVER, B.C.
LOUGHEED & TAYLOR, Limited
/,V I ES TMEX T SECLRI TIES
210 Eighth Avenue West
CALGARY ALBERTA
P.
M. LIDDELL & COMPANY
Investment Banl(ers. Fiscal Agents
Insurance Brokers
826.7-8 ROGERS BUILDING, VANCOUVER, B.C
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
.1 W. \1AH A.S
A WEST.MAN
Managing Direcloi
X
Waghorn Gwynn & Co., Limited
Stock and Bond Brokers
Financial Insurance, and Real Estate .'\gent3
VANCOUVER
THE MONETARY TIMES
Volume 66.
CORPORATION SECURITIES MARKET
>lore Pulp and I'aper Financing — Winnipeg: Electric Stock
Offortd to Public — Shawinigan Bonds Sold in New York
IP there was any turn in sentiment during the past week,
the action of the Canadian stock lists indicated that it
was but a very moderate one. The urgent selling of the two
weeks previous was not so much in evidence, while for the
mo,-t part brokers reported a slight predomination of demand
over liquidation. There was no general movement in the
various groups, although the paper section showed slight
recovery, but some issues were singled out as the result of
events which had no . particular bearing upon the entire
market. There was a disposition on the part of Wall Street
to observe the European situation, which interest also ex-
tended to Canada, but the stock markets both here and in
New York were affected only slightly, due in part to the gen-
eral belief that the dispute between Germany and the Allies
wou'd soon be adjusted. The state of conditions in this
regard was largely reflected in the foreign exchange market.
On the Canadian exchanges Canadian General Electric
gave a display of strength, but apart from the good posi-
tion of the company and a surmise that shareholders would
participate in some sort of a bonus, nothing definite was an-
nounced to indicate the justification of the movement. It is
evident, however, that something is pending, which is con-
sidered to be favorable to stockholders. City Dairy was
another issue which found favor with the traders, as a
result of the return by the company to the dividend paying
list. During the past few years the company has been pro-
viding for capital expenditures out of earnings, but from
the promises and recent action of the officials, profits will be
more largely available for distribution to shareholders in
the future.
There were a few issues which were subjected to con-
siderable pressure. The slump in Dominion Canners was
the dii-ect outcome of the facts revealed in the annual re-
port, which is reviewed elsewhere in this issue. National
Breweries yielded several points in the face of rather un-
certain rumours regarding certain events which are inter-
preted as being to the detriment of the company's -position.
Windsor Hotel took a spectacular drop. This was the be-
lated reflection of the failure of a certain party to exercise
their option on the company's shares at 175. Several theories
were offered as to the reason for the heavy selling and
weakness of Dominion Steel, but none of the conclusions
were certain.
The week's trading in listed stocks in Montreal showed
a turnover of 62,786 shares, as compared with 73,4.56 previ-
ously, while in Toronto the figure was 15,941, as against
15,761. Bonds changed hands on the, Montreal exchange to
the extent of $1,388,750, compared with $1,737,050 a week
ago, while the figure in Toronto was $1,215,250, compared
with $2,840,350 previously.
Announcement at the end of last week of the offering
of $2,000,000 8 per cent., general mortgage bonds of the
Eraser Companies, Limited, practically concludes, for the
time being at least, financing of this kind, of pulp and paper
companies. The $2,500,000 8 per cent., 20-year general
mortgage bonds of the Brompton Pulp and Paper Co. are
still to be placed on the market, however. A shareholders
meeting is called for March 24, to approve of the issue. As
anticipated, the securities will bear a conversion privilege.
The public is given the opportunity to subscribe to the
Eraser issue until March 28, 1921, the price being 99, to
yield 8.10 per cent. Details will be found in a prospectus
advertised elsewhere in this issue.
The $1,000,000 7 per cent., first refunding mortgage
20-year bonds of the Howard Smith Paper Mills, Ltd., the
issue of which was announced in these columns last week,
are being retailed to the public by Aldred and Co., R. .A.
Daly and Co., and Hanson Bros., at a price of 91 and accrued
interest, to yield 7.90 per cent. A large number of the
holders of the old 6 per cent, bonds of the Howard Smith
Co., as well as of 6 per cent, bonds of the Toronto Paper
Co., are being turned in for exchange into the 7 per cent,
issue now being made. A portion of the issue was set aside
to provide for this exchange and that as soon as the ex-
change of the old bonds for the new bonds has been com»
pleted the new will become first mortgage bonds.
Shawinigan Power Bonds Sold
The Shawinigan Water and Power Co., it was announced
recently, has disposed of an issue of $2,500,000 of Series "C"
30-year, 6 per cent., first refunding mortgage gold bonds, due
July 1, 1950. The securities were sold in New York, the
entire i;sue being taken by a syndicate comprising: Lee,
Higginson and Co., Brown Bros, and Co., Alexander Brown
and Sons and Jackson and Curtis. The offering was made
at 90% in New York funds to yield the investor 6% per cent.
Eollowing the issue last year of the company's 7% per
cent, six-year convertible gold notes to the extent of $4,-
000,000, which are secured by 6 per cent. Series "B" bonds,
the Shawinigan executive announced,that it was the inten-
tion to do further financing this year in order to provide
funds for the work on the new transmission tower line to
Montreal, which will be completed during the coming sum-
mer. Part of the proceeds will ^Iso be used on the extension
of the company's plant at Shawinigan Ealls, where woi'k on
the 40,000 h.p. installation is now being proceeded with. It
is anticipated that the latter work will be completed by the
end of the current year.
Th^ Winnipeg Electric Railway Co. is ofi'ering 7 per
cent., preferred stock locally at 90, to yield 7% per cent.,
together with a bonus of 30 per cent., common. Subscribers
are to make payments at the rate of $10 per month. This
is part of the recent $3,000,000 issue, and is in- accordance
with the pledge of the underwi-iters to offer a certain amount
to patrons.
Th" Mining Corporation of Canada, Ltd., has passed
its regular quarterly dividend. Three dividends were paid
during 1920, the last quai"terly one for that year also having
been passed. While the news of the passing- of the dividend
caused a small reactioii in this stock on the Standai'd Mining
Exchange, it did not generally affect the market.
UNLISTED SECURITIES
B.d
Ask
Bid
Ask
Bid
Ask
Bid
Ask
Abitibi Gen. Mtge.S'sMO)
89.50
Uavies William 6's
91
99
Massey-Harri.-s
95
St. Lawrence S
igar. 6's.
91.50
Alta. Pac. Grain.. ..com.
13i
Dom. Foun. & Steel.com.
45
50
Mattagami Pulp... com.
20
30
Sterling Bank.
107
115
" " " ....pref.
7fi.50
85-50
Dom. Iron&Steel5'slii3g
68
73
" ...pref.
65
74
Sterling Coal..
. . . .com.
19
23
American Sales Book.6's
91
Dom. Power pfd.
8S
91
Mercantile Trust
90
100
Toronto Paper.
6's.
84
Brandr'm-H'ndes'n.pref.
British Amer. Assurance
Dunlop Tire pref.
Eastern Theatres, .com.
5's (1924)
8
V>
12
15.50
Mexican Nor. Power.. 5's
10
13
Trust jfGuar...
70
77
Burns. P. 1st MtRe. 6's..
91
99
Ooodyear Tire. ...7% pfd.
65
Atorrow Screw 6's
83
88
United Ci^ar St
orescom.
.58
Can. Machinery pref.
45
5K
Gunns. Limited pref.
75
Murray-Kay pfd.
62
70
" .pref.
1.70
2.25
6's.
66'
80
72
Harris Abattoir 6's
Home Bank XDU%
89
98
95
101.50
ISO
86
Western Assurj
Western Grocer
s....pfd.
9.75
65
Canada Mortgage.
Neilson. Wm 6's.
Can. Oil com.
Can. Westinghouse
North American Pulp . . .
Nova Scotia Steel 6% deb
WhalenPulp...
i64
115
Internnti mal M lling.6's
90
75
82
.7% deb.
85
Can. Woollens pref.
75
King Edward Hotel.com.
77
Ont. Pulp .6's
93
96.50
Cockshutt Plnw...com.
9
..7's.
73
79
Riordon. .com. (new stk.)
16
■22
■• 7% pref.
CollingwoodShipb'dg.b's
66
Lake Superior Paper. 6's.
" ..pfd.
R.Simpson pfd.
R'b'ts'n.P L. Screw.com.
72
65
6.50
35
Cuban Can. Sugar. . nfd.
20
32
Manufacturers Life
170
'200
Southern Can. Pow.com.
20
March 11, 1921
THE MONETARY TIMES
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Yean
to ukU
7 lo7% fc
We Speciallx) Recommend ihese Bonds as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto BIdg. Royal Bank Chambers
EDMONTON CALGARY
The Bond House of British Columbia
WE ARE ;N THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C. Victoria, B.C.
DIVIDEND NOTICE
(Dividend No. 148)
Notice is hereby given that a quarterly divi-
dend of iTDO and one-half per cent. (2i%) for
three months ending March 31st, 1921, (be-
ing at the rate of (en per cent, per annum), has
been declared upon the Capital Stock of
this Institution, and the same will be payable
at the offices of the Company, Toronto, on
and after Friday, the 1st day of April, 1921.
The Transfer Books will be closed from the
16th to the 31st of March, both days
inclusive.
By Order of the Board.
G. A. MORROW.
Managing Director.
CENTRAL CANADA
LOAN AND SAVINGS COMPANY
King and Victoria Sts. - Toronto
EST. 1884 471
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiii
niiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniw
SINKING FUND TRUSTEES
CITY OF WINNIPEG
itIIINfflllHJIillllMlWUUiliaiUUUilllllilllllWIIillllUUil.
iiiiiiiuuiiuiiiii,i;iiai>u.i.
liiiuiuiilliuiiiiiiiiiiiijiriiiiuiniiiiniii
Features of 1920 Report
Total Assets $11,824,062.16
Increase over 1919 1,367,092.32
Net surplus over amount required to be earned for period 385,448.35
Investment reserve now stands at 350,000.00
.Application of surplus earnings to date: —
Commutation of City of Wiruiipeg levies 590,444.52
City of Winnipeg Pension Fund 100,000.00
Surplus carried forward 84,042.60
.■\niount of City of Winnipeg debt taken care of by Sinking Fund Trustees by
reason of application of surplus earnings ■ 1,206,000.00
Average interest rate over ; 6 ' j '"r
Ratio of yearly expenses to assets ' .OTQ'/r
ii!i'i:mnnniiiiiiiiniiiniiiiiiiinimiiiiiiiiuiiniuuiiii!UiiuiniininiiiiiiiiiiiAi>nmiiimniimammuam^^^ iiiiiiiinmiiiiiiiiniii.
TRUSTEES:
W. H. CROSS F. O. FOWLER, Alderman
H. C. THOMPSON, Secretary 478
E. F. HUTCHINGS, Chairman
liiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiim
40
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
pfd.
Ames-Holden pfd.
Atlantic Sugar
Bell Telephone
Brazilian T.L.& Power
B.C. Fish
Brompton Pulp & P. . .
Canada Cement
•• ...pfd.
Can. Con
Canadian Cottons
" .pfd.
Canadian Car
•• ....pfd.
Canadian Gen. Elec...
Can. Steamship
• •■ pfd.
•• •■ deb.
" ■■ .... Vot. Trust
Con. Mining & Smel. . .
Del Rys
Dom. Canners
Dominion Bridge
Dom. Iron pfd.
Dominion Glass
•' ...pfd.
Dom. Steel Corp
..pfd.
Dominion Textile
" ..pfd.
Howard Smith ....
Hillcrest
pfd.
Inter. Coal ptd.
Kaministiqua •.
Lake of the Woods..
pfd.
Laurentide
LyallCons
Macdonald Co
Maple Leaf Milling..
Mont. Cottons
" pfd.
Montreal Power
Tram
•■ ..Deb.
Telegraph...
National Breweries....
" ..pfd.
Ogilvie Flour Mills
pfd.
Ont. Steel
Penmans
pfd.
Prov- Paper..
Quebec Ry. L. H.&P..
Riordan Pulp* P
■■ ..pfd.
St. Lawrence Fl. Mills.
St. Maurice
Shawinigan W.&P ...
Spanish River
•• pfd.
'• Div.Vou.
Steel Co. of Canada...
• ■• •■ pfd.
Toronto Ry
Twin City
Wabasso Cotton
Wayagamacit P. & P..
Windsor Hotel
Winnipeg Ry
Woods .Mfg. Co
■tanks
Commerce
Hochelaga
Imperial
Merchants
Molsons
Montreal
Nationale
Nova Scotia
Royal
Standard
Toronto
Union
ROIKIS
Asbestos Corp
Bell Telephone Co
Can. Cement
Can. Cottons
Can. Rubber
Cedars Rapids Mfg....
City Mont.Dec.e's. 1922
" .May6's,1923
" Sept.S's. 1923
Dom. Can.W.Loan. 1925
1931
1937
Sales Open High Low Close
victory Bond;
, 1924.
1934.
1922.
1927.
1937.
1923.
1933.
21)00
1000
2000
1000
650:
31161
90909
96S87
4164K
11270
31631
260939
50216
92*
643
64|
mtHTHKAM^-Continiied.
Bonds
Dom. Cottons .
Dom. Coal
Dom. Iron . .. . .
Dom. Steel
Dom. Textile..
Lake of Woods
Lyall
Mont. Power .
National Brewc
Ogilvie Flour. .
Penmans
Quebec Ry. L. H.&P..
Scotia
Sherwin-Williams....
West Kootenay
Wabasso Cotton
Wayagamack P. & P. .
Winnipeg Elec
Sales Open High Low Close
TOROKTO— Week Ended Slar. fllli.
Stocks
Atlantic Sugar
Abitibi
Barcelona
Bell Telephone
Brazilian Traction. ...
Burt. K. N
■■ pfd.
Can. Car &F. ...pfd.
Canada Cement
■■ ...pfd.
Canners
Canadian Pacific R
Can. Gen. Elec
...pfd.
Canada Steamship
pfd.
City Dairy pfd.
Dome
Dom. Iron
Duluth
Ford Motor
La Rose
Loco
Lake of Woods...
Mackay Companit
Maple Leaf
Monarch.. . .
Nova Scotia
Nipissing...
Ont. S. Pro..
Porto Rico .
...pfd.
.. pfd
...pfd
. Burt .
Penmans ..pfd.
Prov. Paper
Quebec R.L.H. & P
Riordon
Rogers
pfd
Salesbook pfd
Sawyer-Massey pfd
Sh. Wheat
1208 33
4571 1041
26 104j
elte
Spanish River.
Toronto Ry
Tucketls
Twin City
Winnipeg Elec.
W.C. Flour
Ranks
Commerce
Dominion
Hamilton
Imperial
.Montreal .......
Nova Scotia....
Royal
Standard
Toronto
Un
n. I. and
1. Perm
Land. B'nk
Toronto Gen. Trusts..
Konds
1. Bread
Canners
Elec. Dev
Can. S. S
,. Jan. T.. L. &P...
) Paulo .-
Sterling Coal
1000
14500
Sales Open High Low Close
TOKONTO— Co«««Me<i
War Loans
Dom. Can.W.Loan. 1925
1931
1937
Victory Loan 1922
1923
1927
1937
1933
1934
Sales
237.'>0
Open
High
Low I
91 !
94i
92ii
94|
217O0
93}
92* 1
469O0
97S
98
97*
97750
98j
98}
98J !
75650
97J
98j
96i
39500
97
97|
97
115900
99|
993
995-
173050
98i
98S
98
422450
958
95S
95J 1
10.5950
9fS
96j
96 i
WINKIPEti— Week ended .^Inr. 5lh.
Victory Loan 1922..
" 1923..
" 1924..
" 1927..
" 1937..
" 1933..
" 1934.
War Loan 1931 . . . .
'■ 1937...
Can. Natt
Gt. West Per
: Bank .
Sales
Open
High
98*
Low
98S
12300
98;;
15850
98
98
98
620(1
96*
968
96^
3600
97^
97l
97
I9I0O
99|
993
99J
292!i0
98i
9SJ
98i
98',
66800
955
951
100(1
93i
93i
93 i
300
97*
97i
97*
S
60
60
60
5
56
56
56
1
106
106
106
6
158
158
158
20
7lS
71j
Hi
99i
NEW YORK— Week ended Mar. rilli.
Canadian Pacific
Canada Southern
Nova Scotia S. & Coal.
Granby Consolidated . .
Sales
12000
. 5% 1921 86000
Sl% 1921 lO.SOOO
5% 1926 UOOt
Si% 1929 85000
5% 1931 98000
Open
1171
High Low
117* 114
LONDON, Eiig.— Week ended Feb. ISIIi.
4iov'l. A Hnn.
Alberta 4*%
Canada. .34% 1930-50...
" .... 3*% 1909-34
" .... 4% 1940-60.
" .... 4i% 1920-25
Calgary 4i'.. deb
Edmonton 5% bds. 23-.S3
3%
Saskatoon 4i%deb..
Toronto 4% deb
4j% 1948....
Victoria 3*% 1921-6..
;■ 3*% 1923....
'] 4% cons
5i%cons....
Vancouver 4% bds...
Winnipeg 4*% 1943-63
4% cons. 1940
Hallways
Can. Nor. 4% deb. 1939
■■ ■• Ont.3i%db.'38
" Pac.4%deb.
Can. Pac
•• 4% deb.
'• 4% pfd.
G.T.P. Br. 4% bd 1939.
G.T.P.3%bds
G.T.P. 4% 1955
Gr. Trunk 4% guar.
Gr. Trunk5% 1st. pfd..
Gr. Trunk 5% 2nd pfd..
Gr. Trunk 4% 3rd pfd . .
Gr. Trunk 4% cons
Gr. Tr. West. 5% deb..
Ont. & Quebec 5% deb.
P. Gt. East.4*%deb.'42 .
Ind., Flu., Etc.
Can. Cemfent 7% ....
Can. Car 7% pfd
(Zan. Cottons 5% bds.
Can. West Lumber 5% .
Calgary Power 5% bds
Can. Gen. Elec
Van. Pow. 4*% gr. deb.
Can. Bk. of Commerce .
Bank Montreal
7S3
S6J
6-ii
70J
147*
673
March 11, 1921
THE MONETARY TIMES
BAJJK BRANCH NOTES
RAILROAD EARNINGS
The Canadian Bank of Commerce has opened a branch at
Port of Spain, Trinidad.
The sub-agency of the Canadian Bank of Commerce at
Paswegin, Sask., has been closed.
The Bank of Toronto has purchased the Fairfield Block
the corner of Granville and Pender Sts., Vancouver, for the
sum of $200,000, and will build a quarter-million dollar bank
thereon.
The. property at the corner of Main and Timothy St.,
Newmarket, Ont., has been purchased by the Bank of Mont-
real, where a new branch is to be erected.
The Merchants Bank of Canada are to open a branch at
Winnipeg Beach, Man.
During the month of February there were 18 branches
opened. The following have not yet been mentioned in TIte
Moiicliiiy Tillies: — Bedford, Que., Nationale; Johnville, Que.,
Merchants; Matauzas, Cuba, Royal; Mont Holland, Que., Pro-
vinciale; North Standbridge, Que., Nationale; Point a
Calumet, Que., Provinciate; St. Louis Champlain, Que., Na-
tionale; St. Maurice, Chaplain, Que., Nationale; Val Jalbert,
Que., Nationale.
There were ten branches closed during the month, eight
of which have not been mentioned in Tlie Moiictury 'J'iincx: — Ber-
wick, N.S., Union; Carmel, Sask., Union; Ducks, B.C., Union;
Harrisburg, Ont., Merchants; Insigger, Sask., Royal; Lowe
Farm, Man., Union; Meeting Creek, Alta., Royal; Pink-
ham, Sask., Union.
The branches opened were distributed among the banks
as follows: — Nationale, 5; Royal, 5; Provinciale, 2; Nova
Scotia, 2; Toronto, 1; Merchants, 1; Home, 1; Imperial, 1.
MOUNT ROYAL ASSURANCE COMPANY
.\nother favorable year was experienced by the Mount Royal
Assurance Co. in 1920, the premium revenue amounting to
$741,679, being an increase of $95,692 over the previous year.
Interest from investments amounted to $84,832, making the
total income $826,512, as compared with $714,200 in 1919.
Losses showed an increase, the ratio to premiums being
46.29 per cent., as compared with 43 per cent., previously.
Commissions and expen.ses naturally increased with the
advance in business, and amounted to $264,142, as against
.$244,909. Net earnings, however, were $219,013, as against
$190,902 in 1919.
Apart from the regular dividends, the directors, in view
of the last amendments to the income tax law, thought it
judicious to make, out of the surplus that had accumulated
prior to December 31, 1916, a distribution equivalent to $172,-
177, which together with the general shrinkage of all secur-
ities, accounts for the slight decrease in surplus.
The Mount Royal has been in business for eighteen years
and its operations under a Dominion license extend back to
1912, since which date the company has shown marked ex-
pansion, as evidenced by the figures below. The insurance
written is chiefly fire, although a small plate glass business
is carried on. The insurance in force is now well on the
way to the hundred niilliom mark: —
Gross Invest-
ineome. ments. Resei-ves, Surplus.
1903 $ 40,068 $ 33,063 $ 12,500 $ 3,624
1912 325,249 531,261 143,667 168,829
1919 1,100,284 1,396,174 396,777 675,566
1920 1,262,219 1,325,727 451,179 648,000
_: .^^F
COBALT ORE SHIPMENTS
The following are the shipments of ore from Cobalt
Station for the week ended March 4: —
O'Brien Mine, 64,310 pounds. The total since January 1st
is 1,565,800 pounds, or 784.9 tons.
The following are the approximate gross earnings of
Canada's transcontinental railways for the month of Febru-
ary:—
Canadian Pacific Railway.
1921. 1920. Inc. or dec.
February 7 $3,370,000 $3,288,000 + $ 82,000
February 14 3,044,000 3,547,000 — 503,000
February 21 2,913,000 2,901,000 + 12,000
February 28 3,067,000 3,472,000 — 405,000
Total $12,394,000 $13,208,000 — $ 814,000
Canadian National Railway.
February 7 $2,174,009 $1,545,473 + $ 628,536
February 14 2,121,780 1,673,047 + 448,733
February 21 1,958,846 1,552,908 + 405,938
February 28 1,895,616 1,744,631 + 150,985
Total $8,160,251 $6,516,059 + $1,634,192
Grand Trunk Railway.
February 7 $2,038,601 $1,585,551 + $ 453,050
February 14 1,891,565 1,716,963 + 174,602
February 21 1,851,665 1,405,454 -f- 446,211
February 28 1,807,819 1,862,511 — 54,692
Total $7,589,650 $6,570,479 + $1,019,171
OTTAWA LI(;HT. HEAT & POWER CO., LIMITED
The combined report of the Ottawa Electric Com-
pany, the Ottawa Gas Company, and the Ottawa Light, Heat
& Power Company, Limited, shows a substantial gain in gross
revenue, which was $1,459,308.51. The gross expenditure, in-
cluding management, operation and maintenance was $1,068,-
888.90. After paying interest on bonds and current liabili-
ties, the net revenue was $228,699.72, out of which four
quarterly dividends at the rate of six per cent, per annum
were paid, a substantial amount set aside for bad and doubt-
ful debts, and the balance was carried to Profit and Loss Ac-
count, which now shows a credit of $128,090.20.
The balance at credit of Reserve Acount is $770,000.00.
The main features of the balance sheet for the past two
years are as follows:
ASSETS
1920 1919
Property, Plant and Equipment. . $8,263,164.04 $6,165,314.22
Merchandise and Stores 198,537.60 128,314.67
Coal and other supplies 142,092.26 131,003.20
Accounts and Bills Receivable. . 431,583.53 348,083.65
Montreal Trust Co. "Deposit .A.c-
count" 57,500.00
Victory Bonds 41,137.81
$9,092,877.43 $6,813,853.55
LIABILITIES
1920 1919
Stock (Ottawa Light, Heat &
Power Co.) $3,500,000.00 $3,500,000.00
Stock (O. E. Co., held by O.L.H.
& P. Co.) 1,500,000.00
Bonds 2,825,000.00 2,125,000.00
Accounts Pavable "Banks" .... 156,670.02 57,920.55
Accounts Payable "Trade" .... 213,117.21 236,949.44
Reserve Account 770,000.00 770,000.00
Profit and Loss 128,090.20 123,983.56
$9,092,877.43 $6,813,853.55
Bank loans shown in the Statement at $156,670.02 have
since been reduced to $82,916.78. Accounts Payable have
also been materially reduced.
The outlook for the Company's Electric and Gas business
for the current year is most favorable. (Adv.).
THE MONETARY TIMES
Volume 66.
Corporation Finance
Sharp Drop in Profits of Dominion Canners — Penmans' Sales Increased, but Net
Earnings Were Lower — City Dairy Had Satisfactory Year — Levis County Rail-
way May Go Out of Business — Hillcrest Collieries Reports Favorable Operations
Oakoal Co., Ltd. — The directors of the company, which
was organized and financed in Toronto last year, decided on
March 7 to go into voluntary liquidation for the purpose of
reorganization. A statement issued says the company was
not in a state of bankruptcy, but owing to the present finan-
cial depression, was finding it difficult to make collections on
stock subscribed for, which approximates the amount the
company owes. E. R. C. Clarkson and Sons have been ap-
pointed receivers.
The st&tement adds that "the company has for the past
three months been making anthracite briquettes and will
continue to do so. The idea of going into voluntary liquida-
tion is simply to give ample time for reorganization, collec-
tion of outstanding subscriptions, and meeting all obliga-
tions." Some of the directors have been laid aside by sick-
ness and the manfoging director, J. R. Long, has resigned.
Therefore, their places are to be filled from among the share-
holders.
Steel and Radiation, Ltd. — Following the announcement
that G. T. Clarkson had been appointed receiver of the com-
pany, which has its head office and plant at Toronto, with a
plant also at St. Catharines, Ont., the following statement
was given out: — "The receivership is for the purpose of re-
organization, and it is contemplated that the business will be
carried on without any inteiTuption whatever. No statement
will be available for some time."
Steel and Radiation's chief products are heating ap-
paratus— radiators and boilers. During the war a large busi-
ness was done in munitions work, and it is thought that
adjustments to normal lines of business since the close of the
war have been diflficult.
Paid-up capital stock of the company, according to the
last annual report was $1,861,700 common and $664,700 pre-
ferred. An issue of bonds of $1,000,000 is also outstanding,
mostly in England. Dividends at the rate of 7 per cent,
were paid on preferred for some years, but were in arrears
since and including 1918. Net profits from all operations
were as follows in the years mentioned: — 1920 and 1911
(fifteen months), $49,291; 1912, $83,565; 1913, $108,131; 1914,
$13,797; 1915, $123,086; 1916, $303,601; 1917, $213,516; 1918,
$481,464; 1919, $26,349.
Intercolonial Coal Mining Co., Ltd. — The annual report
of the company shows a considerable falling off in earnings
in 1920 from those of the previous year. This was
due to the loss of output following the falling off" of
the then heaviest producing section of the Number 2 Mine,
owing to fire indications, at the end of February, and the
heavy expenditure entailed on this account. Apart from
this, a satisfactory year's operating was experienced. Owing
to the above cause, production shows a falling off from the
previous year's figures of 24,142 tons, the output being
161,275 tons, compared with 185,417 tons in 1919. The de-
mand was brisk practically throughout the whole year, and,
during the greater portion of it, was in excess of the supply.
Towards the end of the year, however, it was beginning to
slacken off considerably, with indications of duller markets,
owing to general business conditions.
Profits on operating year ending December 31, 1920.
amounted to $112,408, compared with $152,499 in 1919. In
the company's balance sheet, property account has been in-
creased $143,000 to $1,545,247, and bonds outstanding have
been reduced $18,500 to $101,000. Accounts receivable are
up $16,000 and total assets up $168,000. Reserves have been
increased $164,000.
Hillcrest Collieries, Ltd. — Operating profits of the com-
pany for 1920 amounted to $168,704, as compared with $112,-
614 in 1919, and $110,295 in 1918. These figures were arrived
at after provision for all expenses and special replacements.
Miscellaneous revenue for the year totalled $22,969, bringing
the total net earnings up to $191,674, as compared with $138,-
230 in the year previous. After deduction for bond interest
and dividends on preferred, a balance of $121,025 remained
applicable to the common shares, being equivalent to 12.5
per cent, on the $1,000,000 common stock outstanding, as com-
pared with 7.25 per cent, in 1919. Common stock disburse-
ments totalled $70,000, as against $45,000 in 1919, and $20,-
000 in 1918.
The changes in the balance sheet are not of a very
significant nature. Some of the principal comparisons are
as follows: —
1920. 1919.
Properties $1,886,444 $1,922,829
Cash 82,089 24,103
Accounts receivable 181,428 146,223
Investments 345,749 340,869
Total assets 2,754,690 2,691,796
Contingent reserve 275,000 260,000
Profit and loss surplus .... 260,077 219,051
Levis County Railway. — Following the recent disastrous
fire which destroyed almost all the cars and equipment as
w'ell as the shops, the company may decide to liquidate
its assets including the insurance payable and go out of busi-
ness. H. E. Weyman, general manager of the company,
says: — "As the people of the south shore are as much, if
not more, affected as the tramways company by the recent
disastrous fire, it is only fair that they should be fully in-
formed of the company's affairs. There are only six pas-
senger cars left to perform the service, which has, of course,
to be curtailed. Having no spare cars to replace any which
may or will need running repairs, the service will be further
reduced at times on this account.
"An insurance adjustment has been made and settled in
record time and is considered a fair and satisfactory settle-
ment, to all parties. The value of the property destroyed
allowing for depreciation is figured at $240,000, of which
$37,000 is deducted as the value of salvage by the insurance
adjusters, leaving the company $203,000. The property de-
stroyed was acquired in the past and as a going concern was
worth its replacement value. This is, of course, 7riuch higher
than the insurance value, in consequence the money received
from the insurance will not replace the property loss '^y 50
per cent., necessitating a new investment of about $100,000."
City Dairy Co., Ltd. — Net earnings of $117,770, com-
pared with $115,389 for the previous year, an increase of
$2,381, is shown in the annual I'eport of the company for the
year ending December 31, 1920. According to the statement
the balance forward from the previous year was $225,897, and
when this is added to the net earnings as above, the total
amount available for distribution is $343,668 as against a
total for the same purpose last year of $274,897. Of this
sum deferred dividends on preference stock, being the full
amount of all deferred dividends thereon, where paid, amount-
ing to $73,500, while in addition the regular dividends on the
preference stock were paid, amounting to $49,000, leaving a
balance to be carried forward to 1921 of $221,168.
Total assets of the company at the end of the year were
$2,066,317, against $1,901,253 at the end of 1919. Among
the items under this head are accounts receivable at $162,556,
which is a considerable increase over those of a year ago
at $95,364. Mortgage sinking fund and prepaid charges are
$39,187, compared with $37,255 a year ago. Among the
liabilities are bankers' advances of $118,948, against $19,358
last year.
In his statement the president, Mr. C. B. McNaught,
says: — "While fortunately many of the operating difficulties
March 11. 1921
THE MONETARY TIMES
have now disappeared, the year just closed was probably the
most trying in the company's experience, and your directors
feel that the consistent and gratifying results shown should
be viewed with considerable satisfaction. The company's
properties, plants and equipments have been maintained at the
highest standard of efficiency. The ice cream plant has been
thoroughly modernized, and its facilities, including its cold
storages, greatly increased. A receiving station was erected
during the year at Simcoe, Ontario, rendered necessary by
the increasing demand for City Dairy produces. The Drimilk
Co., Ltd., of Courtland, Ontario, organized during the year, is
filling an important place in the success of the operations of
your company."
Penmans, Ltd. — Despite the substantial increase of
1960,332 in the total sales for the twelve months ended De-
cember 31 last, during which the business done amounted to
$9,499,180, net profits are shown in the statement at $460,-
305, a decline of nearly $1,000,000 from the level of 1919,
when these reached the record total of $1,437,291, which in
turn, compared with $1,358,331, in 1918. The net results of
the year are the lowest reported by the enterprise since 1914,
when the total fell off to $386,873. Deductions and allow-
ances in the statement under review were also on a much
less generous scale than in recent years, no provision being
made out of earnings for depreciation, while war taxation
requirements took but $45,000, against a provision in the
1919 exhibit of $425,000, and $355,169 in 1918. After the
year's fixed charges and preferred dividend disbursements
were deducted from profits, there remained a balance avail-
able for application to the common stock of the company
amounting to $250,805, representing earnings equivalent to
approximately 11.7 per cent, on the junior securities out-
standing. This compares with 37.4 per cent, in 1919, 33.4
per cent, in 1918, and 35.3 per cent, in 1917.
The president. Sir Charles Gordon, in his report to the
shareholders, states that the less satisfactory results of the
year's operations was the result of a heavy shrinkage which
took place during the latter half of the year in the value of
the company's raw and manufacture:! stocks. The trading
profits of the period, he states, have been arrived at after
writing down inventories to present market prices. Such in-
ventories, however, are shown at a materially higher figure
than that of the preceding statement, the 1920 statements
showing the value of raw and manufactured stocks, at re-
placement cost, at $3,158,232. compared with $2,913,620.
The position as to working capital shown in the 1920
statement has undergone some impairment, but the company
still is in comfortable circumstances in this respect, current
assets exceeding current liabilities by $3,385,363, against
$3,636,132 in the previous year, and $3,154,235 in 1918. The
iscrease in current liabilities, as shown above, is due almost
entirely to the item of $1,300,000, representing bank advances,
shown in the balance-sheet section of the report. Cash on
hand is shown at $324,123, compared with $104,621 in 1919,
while the company's investments in war bonds was increased
from $65,125 at the end of 1919 to $206,565 as at December
31 last.
Dominion Canners. Ltd. — .A. sharp drop in profits is
shown in the annuaJ report which was presented at the
annual meeting of shareholders in Hamilton last week. The
following are the comparisons: —
1920. 1919.
Profits, after tax provision,
etc $ 293,699 S 819,823
Bond interest 109,424 99,797
Preferred dividends 160,342 160,342
Surplus $ 23,933 $ 559,684
Previous surplus 2,031,905 1,472,221
Totaj at profit and loss 2,055,838 2,031,905
The president, J. J. Nairn, commenting on the reduction
of profit.s last year pointed out that the cost of production
was even greater than in any year since the war, while
selling prices as a whole were lower and there was a narrow
margin of profit between cost and selling prices. Orders
booked were as large r,'S those of 1919, but cancellations and
protracted deliveries amounting to approximately $2,000,000
alone prevented profits equal to those of past years, not-
withstanding the nari'ow margin between cost and selling
prices.
"The costs of labor, produce and all materials necess&ry
for the manufacture of canned goods," he said, "are still
100 per cent, higher than before the war, and in addition this
year the sum paid in exchange for those materials which h&d
to be purchased in the United States amounted to $200,000.
We therefore do not see how prices of present stocks of
canned goods can be reduced. Owing to British and foreign
trade conditions and exchange rates, export business which
had developed .so favorably, declined to a small figure, but we
confidently look forward to a return to better conditions this
fall, and for the resumption of this business on a large scale.
Since the first of the year liabilities to the bank have been
reduced and there will be a further reduction when pay-
ments from customers to whom we have granted extension
of time fall due."
The balance sheet shows a slightly less favorable posi-
tion in working capital, as follows: —
1920. 1919.
Current assets .■^4,864,622 $3,186,141
Curent liabilities 3,984,356 2,268,856
Net working capital ... $ 880,266 $ 917,285
Other changes are as follows: —
1920. 1919.
Fixed £«sets $6,413,930 $6,162,150
Investments 1,401,238 1,671,176
.Accounts receivable 1,469,277 1,421,576
Goods made up . 1,900,940 801,437
Raw materials . . 1,494,404 963,127
Bonded debt 1,339,800 1,455,987
Nova Scotia Steel and Coal Co. — While business handled
by the company almost trebled in 1920, profits did not in-
crease proportionately, due, of course, to the high operating
costs. The volume of business done amounted to $19,558,479,
as compared with $6,889,941 in 1919 end $11,525,779 in 1918.
Combined profits from operations and income from invest-
ments amounted to $2,376,086, compared with $2,193,304 in
1919. After deductions for interest, depreciation, government
taxes, etc., net profits amounted to $1,209,407, compared with
$1,029,876. Dividends on preferred and on the preference
stock of Eastern Car Co., a subsidiary, amounted to $170,000.
which left $1,039,407 available out of ea-rnings for common
dividend, or 6.9 per cent, on the $15,000,000 outstanding,
compared with 6.03 per cent, in the previous year. The
surplus carried forward amounts to $3,015,868, a goodly in-
crease from $2,726,461 in the previous year.
Reviewing the different departments of the company's
business, the president, 1). H. McDougall. states that the im-
proved demand for coal which commenced in the a^utumn of
1919 continued during the greater part of 1920, but percep-
tible slackening was noticeable early in November, and since
that time it has decreased rapidly. Attractive contracts
secured early in the year were only partly carried out, when
i'.n embargo by the Dominion government on the export of
coal resulted in their cancellation, and made it necessary to
secure other employment for the steamers engaged for that
business which entailed a serious loss to the company.
Increased inventories and an item of bank loans exceed-
ing $2,000,000, ;;.rc the principal points in the balance sheet.
Current assets are higher, but liabilities of the same cate-
gory have also increased, reducing the amount of working
capital by about $1,200,000. Some of the principal com-
parisons are as follows: —
1920. 1919.
Total current assets .$10,913,218 $ 9,063,081
Inventories 5,415,079 3,547,944
Total current liabilities . . 4,467,362 1,391,524
Bank loans 2,162,755 '
Total assets 38,391,399 35,714,907
THE MONETARY TIMES
Volume 66
RECENT . FIRES
Alexandria. Out.. Suffered Loss of $60,000— Hotel at Odessa,
Sask., De.strojed. loss $l.'i,000— Mill at Upsalquitch,
N.l!.. Suffered Loss of .$20,000
Alexandria, Ont. — March 3 — Fire destroyed the hard-
ware store of R. H. Coywane, and also the PostofRce and
Customs building, and damaged an adjoining store owned by
J. Boyle. The loss is estimated at $60,000, partly covered by
insurance.
Fort William, Ont. — March 3 — One of the old landmarks
of the Scott highway, known as the "Tin House," was de-
stroyed by fire. It was occupied by Asselin Brothers, and the
fire started from an overheated stove.
Kitchener. Ont.— March 9— Damage estimated at $10,000
was caused by a fire which broke out in the Janzen Block.
The cause of the fire is unknown.
Lindsay, Ont. — March 5 — The house of W. Raymond,
corner Water and Melbourne Sts., was destroyed by a fire
which started from an overheated stove. The loSs is at least
$1,500, partly covered by insurance. Harry Raymond, Mary
St., has also lost his home and contents by a fire which origin-
ated from a spark from the chimney.
Medicine Hat, Alta. — March 2 — A garage, two cars and
a tractor, the property of the Canada Land and Irrigation
Co., were destroyed by fire. Insurance of $9,000 was carried.
Montreal. Que. — March 3 — Six automobiles were de-
stroyed by a fire which did considerable damage to the
Bisanti and Distasio garage, 163 St. Dominique St.
Niagara Falls, Ont. — March 7 — A fire broke out in the
N.S. and T. station, doing considerable damage to railway
tickets. The loss is estimated at $1,000.
Odessa, Sask. — March 7 — Fire thought to have been
caused by someone throwing a lighted cigarette on a bed
totally destroyed the Odessa Hotel. The loss is estimated at
$15,000.
Sydney, N.S. — March 2— The Palace theatre building was
damaged by fire, with a loss of $5,000. The loss is covered
by insurance.
Toronto, Ont. — March 2 — A fire broke out on the premises
at 323, 325, and 3251/2 Yonge St. The first is occupied by
the Imperial Trunk and Leather Co. The damage is esti-
mated at $3,000.
Upsalquitch. N.B.— February 27— The mill, owned and
operated by Reid, Smith and Milton, was destroyed by fire.
The loss is estimated at $20,000, partly covered by insurance.
Windsor, Ont. — March 3— The home of Paul Fuse, 1408
Marentette Ave., was damaged by fire. The fire which was
caused from spontaneous combustion, did $1,500 damage.
ADDITIONAL INFORMATION CONCERNING FIRES
Chatham, Ont. — A bonfire started the conflagration which
recently destroyed the barns of Edward McKen-al, up the
River Harwich, in which the loss was $20,000.
Danville, Que. — Februai-y 4 — The residence of Chester
Brock was damaged by fire. The loss on building was $100,
with insurance of $1,800 in the Missisquoi and Rouvelle In-
surance Companies.
Edmonton, Alta. — Fire losses in Edmonton for the past
year show a decrease when compared with 1919, according
to the annual report of Fire Chief Da\nes. The report shows
that the total insurance earned or involved was $3,213,879
last year, as compared with $5,481,705 the year previous.
The amount of the losses as adjusted last year was $142,490,
while in 1919 the total was $165,527. Most of the blazes
occurred in frame buildings, which accounted for 219 out-
breaks. There, were forty-nine calls for fires in brick build-
ings; in brick veneer buildings there were five fires. Out-
breaks in automobiles, street cars, etc., amounted to 193.
Guelph, Ont. — -February 17 — The store situated at 156
Wyndham Street, and occupied by the Guelph Tire Sales and
Vulcanizing Co., suffered a loss of $6,000, with insurance of
$11,000. The cause of the fire is thought to be a light thrown
down.
Levis, Que. — February 21 — The car barns, shops and
cars beloing to the Levis County Railway were destroyed by
fire. The total loss on contents is $230,000 and $52,000 on
buildings. The insurance is as follows: —
Buildings and equipment— Alliance Insurance, $15,000;
United States. $15,000: National Benefit, $10,000; Home In-
surance Co., $3,075; British and Canadian, $20,650; Globe
and Rutgers, $21,825; Occidental Fire, $10,000; Queensland
Insurance, $7,500; State of Pennsylvania, $7,500; Phoenix As-
surance, $6,547; Royal Insurance Co., $6,547; Eastern Under-'
writers, $5,555.
Equipment — Globe Indemnity, $6,200; British Under-
writers, $5,000; Fidelity-Phenix, $10,000; Eastern Under-
writers, $15,000; Century Insurance, $10,000; North British
and Mercantile, $13,100; Nationale Fire, $17,500; British Em-
pire, $6,000; North America, $6,000; Providence-Washington,
$4,000; Protector Underwriters, $11,000; North America,
$8,000.
Manitoba. — The fire commissioner's statement for the
year ended December 31, 1921, shows that during the year
there were 1,739 fires, with an estimated loss of $2,276,261.
There were 24 fatalities during the year. The following is
the class of structures destroyed: Dwellings 574. farm build-
ings 338, stores 105, automobiles 63; apartment buildings 35,
outbuildings 36, stables 32, garages 35, warehouses 28, fac-
tories 20, hotels 18, schools 12, machine shops 11, res-
taurants 8, churches 5, theatres 3. The following is a list of
the causes: Stoves and furnaces 212, matches 155, lightning
124, smoking 120, chimneys 114, electricity 103, ashes 78,
sparks 51, explosions 43, spontaneous combustion 31, bush
fires 27, hot grease 21, incendiarism 16.
Regina, Sask. — Fire Chief White's report for 1920 gives
the following information: Total loss on buildings and goods,
$88,589; loss on goods, $55,893; on buildings, $32,695; on
goods and buildings, not covered by insurance, $41,660; on
wooden buildings and contents, $65,210; on' brick buildings
and contents, $22,301.
Shawinigan Falls, Que. — February 8 — Two residences,
owned by Hor-midas Bourassa, were destroyed by fire. The
loss is $42,000, with insurance of $10,000 in the La Nationale
of Paris and Norwich Union Fire Insurance Companies.
Smithfield, Ont. — January 30 — The frame house on the
farm of Fred McQuoid was damaged by fire to the extent of
$4,000. There was insurance of $1,250 in the Perth Mutual
Fire Insurance Co.
Toronto, Ont. — Durmg the month of February there were
186 alarms, with an estimated loss of $53,025. Stoves and
furnaces were responsible for 19 fires, children and matches
caused nine, and there was one incendiary fire.
Yarmouth, N.S. — January 26 — A two-story frame house,
barn E^nd wood house belonging to C. N. Adams were dam-
aged by a fire which was caused by a defective flue. The loss
is $400, with insurance of $950 in the Home Underwriters
Insurance Co.
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, ?.'S reported by
R. G. Dun and Co. during the week ended March 4, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
Date.
0
3
S
<
0
0
Mar.
4 .
... 5
12
0
2
1
2
9
0
0
31
16
Feb.
25 .
...16
U
0
4
2
2
8
2
0
48
12
Feb.
18 .
...6
28
2
2
2
0
4
0
0
44
16
Feb.
11 .
...11
19
7
1
2
3
0
2
1
46
21
Vrri-iiiiKD EVF.Rv Fi:ii)AY
The Monetary Times
Printing Company
of Canada. Limited
"The C.anadian I'.ngineer'
>;,,,.Lt.
Trade Review and Insurance Chronicle
of Canada
Established 18ti'
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
Assistant Geuerai Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
Possibilities of Unemployment Insurance in Canada
Through Lack of Information Regarding Extent of Unemployment, Any Present Scheme
Could not be on Sound Actuarial Basis — Might be Based on Assessments— Experience
in Great Britain — Seasonal Occupations Make Unemployment Pronounced in Canada
By GILBERT E. JACKSON
Assistant Professor of Political Kconomy, University of Toronto.
THE Speech from the Throne, with which Parliament
opened on February 14th contained a reference to in-
surance against unemployment, which has caused a good
deal of discussion. The statement that "an investigation
is being conducted by the Department of Labor into sys-
tems of Unemployment Insurance and Old Age Pensions,"
does not of course commit the present government on either
question. But it reminds us that in other countries there
are methods of assuring social welfare, not yet tried in
Canada; and that public opinion in this country may some
day call for their adoption here.
It is on the former of these two references, that discus-
sion has centred in the last few weeks. If insurance is
indeed the wisest provision against unemployment, we must
admit that the workers of Canada need its benefits, even
more than the British workers, to whom insurance has been
:ipplied successfully. For on Canada, trade depression bears
with unusual severity.
More and more it is coming to be recognized that there
is a periodic economic movement. Well known systems of
business forecasting have been based on it. For something
like a generation, years of business activity have succeeded
one another at fairly regular intervals, and years of depres-
.-iion have been not less regular.
Unemployment Pronounced in Canada
We are at the present moment in the trough of one of
these world-wide depressions; and in spite of certain press
despatches, there can be not doubt that the proportion of
workers, who have been out of employment this winter, has
been very much higher in Canada, than in the British Isles.
Thus, in December, 1920, British trade unions reported
that 6.1 per cent, of their members were out of work. The
reports of Canadian trade unions showed that of their mem-
bers. 13.4 per cent, were unemployed. Reports from British
employers showed a contraction in the number of workers
on their payroll, between November 20th and December 18th
of 2.7 per cent. Reports from Canadian employers, for the
same period, showed a shrinkage in the volume of employ-
ment in this country, of 7.5 per cent. Of 11,900,000 British
workers enrolled under the Unemployment Insurance Act of
1920, only 5.8 per cent were unemployed.
So direct a comparison between the two countries, in
the period 1913-1914 is not possible. But the evidence col-
lected by the Ontario Commission on Unemployment points
to the conclusion that then also the burden of unemployment
pressed with unusual severity on the Canadian worker.
The reasons for this difference between an old and a
new country may be stated very shortly. Winter in almost
every country produces a seasonal slackness in certain oc-
cupations. The harder climatic conditions of Canada thus
make the problem of seasonal unemployment among us one
of special urgency. But apart from this, a country like our
own, with vast undeveloped resources, is always engaged, in
times of activity, in constructive enterprises largely based
on borrowed capital. Among the earliest symptoms of trade
depression is a temporary halt on work of this kind. There
is thus a connection between the normally rapid growth of
Canada, and the very widespread unemployment which oc-
curs in the lean years. Again, England trades with all the
world, and manufactures goods for all its markets. Her
trade is apt to fluctuate with the mean of the world's
fluctuations. But our market is far more restricted. We
depend very largely on the farming population to buy the
product of our factories. The harvest of Canada may vary
greatly from one .-season to the next; for every three bushels
of wheat that we harvested in 1913, only two were harvested
in 1914. Harvest failures in Canada react on industry very
heavily; harvest failures in England have little influence
on industrial conditions.
Under these circumstances it is not to be wondered that
in times of depression there is a demand for insurance
against unemployment. And it is only prudence on the part
of government, to determine without delay whether such
insurance is practically possible.
The British Insurance Acts
Outside the British Isles, there is yet no system of un-
employment insurance which is at the same time national
in scope and old enough to have been tested fairly. It is
therefore to the British Insurance Acts that enquirers
naturally turn. The National Insurance Act of 1911 con-
sisted of two distinct parts. Part I. applied the principle of
insurance against sickness and invalidity to nearly 15,000,-
000 people, and had nothing to do with unemployment. Part
II. was experimental, and provided unemployment insurance
for about 2,500,000 workers. Successive amendments have
extended its scope from time to time; and under the Act of
1920, as has been mentioned above nearly 12,000,000 workers
are insured.
Four main principles in the British system deserve con-
sideration, for without them it is doubtful if the scheme
could have survived.
(1) The worker contributes, as well as his employer
and the state, to the fund which insures him ; only by in-
sisting that the worker shall himself have paid a minimum
number of weekly contributions, is it possible to eliminate
"bad risks" — the work-shy and the unemployable.
(2) Claims to receive unemployment benefit ai'e ad-
mitted, and unemployment benefit is paid, only to workers
who are registered with an employment exchange, and so
THE MONETARY TIMES
Volume 66.
long as it is unable to find employment for them at the cur-
rent rate of wages.
(3) In any case, unemployment benefit is paid only for
a limited period, after which the worker can again become
eligible for benefit, only by remaining at work until he has
qualified once more under section (1) above.
(4) Workers who are already insured against unem-
ployment, e.g., in certain great trade unions, may contract
out of the scheme, and their unions may be credited by the
state with the sums due on account of all members insured
by them; industries may also contract out of the scheme,
and administer their own insurance.
These provisions are designed to safeguard the system
and maintain its solvency, without interfering with workers
or employers who may prefer to make their own arrange-
ments. Contributions are fixed on a different basis for men
and women, boys under eighteen and girls under eighteen.
They are made in about the following proportions: three-
eighths each from employer and workman, and two-eighths
from the state. Benefits are paid at the rate of fifteen
shillings weekly for men and twelve for women.* Boys
and girls under eighteen years of age draw half the full
rate.
The worker whose claim to benefit iias for any cause
been disallowed has the right of appeal to a Court of Re-
ferees. Representation both of workman and employers is
provided for in the Court, and government nominates an
impartial chairman.
Possibilities in Canada
Can a system like this be developed in Canada? or (if
we are to have unemployment insurance) must we find a
different method of approach
Six years ago such a system would have been quite
out of the question ; for it would have been impossible, in
the absence of a network of employment exchanges, to make
certain; that the workr who was claiming unemployment
benefit was really entitled to this benefit, because no work
could be found for him. The development of a Dominion-
wide Employment Service has provided us with the neces-
sary machinery.
In the matter of information we are not so fortunate.
One advantage at least was enjoyed by the pioneers of the
British system, over all advocates of unemployment insur-
ance elsewhere. Their scheme from the outset rested on a
strong actuarial basis. Just as much as life insurance, it
was founded on calculable risks. Data had been collected
by the great trade unions, over a period of sixty years.
Their records were at the disposal of the government. With
these, the determination of rates of contribution and of
benefit was possible; and it was reasonably certain from the
beginning, that the system was sound financially.
In this country we have no such records. If organized
labor in Canada had paid the same attention as organized
labor in Enerland to the problem of unemployment, it would
be possible to calculate from trade union experience a scale
of benefits and payments. But our trade unions have not
as a rule provided unemployment benefit. Indeed their lack
of initiative in this i-espect weakens considerably the claim
of the spokesmen of labor, that government should adopt
insurance against unemployment. Their position would be
very much stronger, if the trade unionist had already been
protected in this way, and if they were calling on govern-
ment merely to develop a system, which labor itself had
shown to be perfectly feasible.
Information is Lacking
Almost, all of the material that can be turned to good
account exists already in the files of the Department of
Labor at Ottawa. But it is not extensive. For the last five
years this department has collected from trade unions the
*A bill now before the British House of Commons in-
cre;)se= the benefit to 18 shillings for men and 15 shillings
for women.
needed statistics of unemployment. For two years it has
been gathering similar detailed statements from employers
also. This information is published monthly by the Labor
Gazette, and may some day prove invaluable for the calcula-
tion of risks of unemployment. To-day, however, we have
not nearly sufficient for our purpose. We have not com-
pletely reviewed even a single trade cycle of boom and de-
pression. A system of unemployment insurance organized on
the same scale as in the British Isles would collect and dis-
burse many millions of dollars in a year. If its financial
arrangements were based on the vei-y limite<l knowledge
that we now possess, it would invite disaster.
It seems that there are two constructive possibilities to
choose between. Either we must wait for several years, for
the completion of our data or we must make plans on a
non-actuarial basis. In other words, if we are to have
"unemployment insurance" here and now, we must be pre-
pared for something that, in the strict sense of the word,
is not insurance at all. It might, nevertheless, be perfectly
sound financially, and at the same time avoid much of the
waste and expense involved in our present method of deal-
ing with unemployment. In this case, as in that of the pro-
vincial Workmen's Compensation Act, a definitel scale of
payments might be contrived with a varying assessment; or
conceivably, the state might make a fixed assessment both
on workers and employers, paying into the funds as its
own contribution a varying sum sufficient to meet current
charges. The same result would be secured, whatever the
method adopted, and few practical men would waste time
in argument about a name.
It was perhaps with these considerations in mind that
the Social Service Council of Canada considered the question
of unemployment insurance in February. Its lengthy recom-
mendation on the subject concludes as follows: —
"That the rlata for calculating actuarially the risks of
unemplovment in Canada are at present insufficient for the
formation of a detailed plsn of Unemployment Insurance on
the British model.
"That in view of the importance and the difficulties
of the subject, it would b-e advisable for the Dominion gov-
ernment to appoint forthwith a commission, to devise, if
possible, a plan for establishin?, as soon as industry re-
vives, an Unemplovment Insurance System; the commission
to be appointed with sufficient scope and adequate funds,
and to report within a limited time."
INSTITUTE OF MINING AND METALLURGY
The 1921 annual meeting of the Canadian Institute of
:\Iining and Metallurgy was held in Montreal, March 2 to 4.
O. E. S. Whiteside, the retiring president, referred to the
status of the Institute as representing the whole mining in-
dustry, to co-operation with other organizations, and to the
de-centralization of efl^ort on the nart of government depart-
ments. John McLeish, chief of the Division of Mineral Re-
sources, Ottawa, gave some figures on production in 1920.
C. V. Corless is president for the coming year.
FIRE AGENTS OF BRITISH COLUMBIA
The fire agents of British Columbia, some nine hundred
strong, are represented for conference work by the follow-
ing committee: — Geo. L. Schetky, H. B. Leuty, J. J. Ban-
field, C. H. Macaulay, and A. McC. Creery. The committee
have many questions under consideration. Among them are:
Legislation — the licensing of agents, etc.; commissions; uni-
form constitution and by-laws for all fire agents' associa-
tions throughout the province; the organization of associa-
tions in the different districts of the province. As soon as
the province is organized sufficiently, another conference will
''" h°ld. This second annual convention will probably be
held in October, and at some point in the interior of the pro-
vince.
March 18, 1921
THE MONETARY TIMES
The Week in Parliament
Private Members' Resolutions Cause Much Discussion, but are Withdrawn — Voting of Supply
Commenced on Tuesday— North American Trust Company Bill Favourably Reported
(Special to The Moiictiiry 7iiiu-s.)
Ottawa, March 17, 1921.
Thursday, March 10
In the House of Commons: — (a) Special committee ap-
pointed to consider questions relating to pensions, insurance
and re-establishment of returned soldiers; (b) Resolution of
Mr. F. H. Keefer, member for Fort William, in favor of a
Great Lakes-St. Lawrence River deep waterway, withdrawn
after debate: (c) After debate on .Smith motion asking
maintenance of cattle embargo by Great Britain in interest
of Canada, House of Commons adopted amendment by
Michael Steele, protesting against implication of disease in
Canadian cattle by said embargo.
Friday, March 11
In House of Commons: — (a) First readings of follow-
ing bills, one forming Lake of the Woods Control Hoard, one
respecting the Kettle Valley Railway Company, one respect-
ing the Manitoba and North-Western Railway Co. of Can-
ada, one respecting the (Juebec Central Railway Company,
and one to incorporate the .Slave River Railway Co.;
(b) Motion of .Sir Sam Hughes asking for a return to the
system of political patronage for appointments and pro-
motions in the political service debated, and withdrawn.
.Monday, March 14
In the House of Commons: — (a) First readings of fol-
lowing bills, one respecting the Essex Terminal Railway
Co., and one respecting the Ottawa Northern and Western
Railway Co.; (b) Second readings of following bills, one
respecting the Kettle \alley Railway Co.. one respecting the
Manitoba and North-Western Railway Co. of Canada, one
respecting the Quebe<- Central Railway Co., and one to in-
corporate the Slave River Railway Co.: (c) Resolution of
Dr. R. J. Manion, member for Fort William, asking govern-
ment to bring forward policy for development of the natural
resources of Canada, debated and defeated: and (d) Re.solu-
tion of H. A. Mackie, member for East Edmonton, condemn-
ing regulations governing oil and gas permits and leases
debated, and withdrawn.
Tuesday, March 15
In the House of Commons: — (a)House went into Com-
mittee of Supply for first time, passing .Vgricultural Depart-
ment estimates for salaries, contingencies and experimental
farms, nearly .SI, 900.000: (b) Second readings of following
bills, one respecting the Essex Terminal Railways Co., and
one respecting the Ottawa, Northern and Western Co.
Wednesday, March 16
In House of Commons: — (a) Debate on motion of J. .\.
Campbell, member for Nblson, asking for completion of
Hudson Bay Railway project.
A Week of Debates
The last parliamentary week has been devoted mainly
to debates on resolutions introduced by private members.
The members have been given the opportunity to express
themselves on such topics as the Great Lakes-St. Lawrence
deep waterway project, the British cattle embargo, political
patronage in the civil service, a policy for the development
of Canadian natural resources, the resolutions governing oil
and gas permits and leases, and the Hudson Bay Railway
project. After discussions mainly intended for the edifica-
tion of the members and the public, and the exerting of in-
fluence on the government, the resolutions were withdrawn, ac-
cepted or defeated. Tuesday of this week made a noteworthy
departure in that the House began the voting of supply,
agreeing to give a couple of million dollars to agriculture.
It is expected that this session will show a departure from
the custom of former sessions, in that important estimates
will come before the House early in the session, as Premier
Meighen will desire to get these and the budget debate well
out of the way before he leaves to attend the Conference of
Premiers in London next June.
Sir George Foster's statement that it was the intention
of the government to appoint twenty-four thousand enumer-
ators to take the census next June 1st is thought by many
to presage a fall session and an election this year. Usually
less than ten thousand enumerators are employed, and the
Bureau of Statistics had intended to use eleven thousand
enumerators. It looks as though the government intends
to get the census figures with regard to population at as
early a date as possible. On these it can base a redistribu-
tion bill, call a fall session, if necessary, and lay the ground
for a general election shortly aftei'wards.
A number of minor changes are expected in the tariff.
The budget address is not expected until May. No funda-
mental changes are expected. Aside from that the debate
on the railway estimates is still expected to be the most
important.
A bill to incorporate the North American Trust Co.
was favorably reported by the Banking and Commerce Com-
mittee of the Commons on Wednesday. The company,
which is being incorporated under the provisions of the
Trust Companies .-Vet, is to have a capital of $1,000,000. The
provisional directors are: George Herbert Wood and James
Henry Gundy, financiers; Edward W. Wright, Edward G.
McMillan and Geoffrey S. O'Brien, barristers, all of Toronto.
WESTERN MUNICIPALITIES MAY HAVE UNION
A decision to form a council representative of the urban
and rural municipal associations in the four western pro-
vinces, was reached at a conference of delegates from the
va-rious municipal organizations in Manitoba, Saskatchewan,
Alberta and British Columbia in Regina on March 10. The
intention is to form an organization for the west to take the
place of the Union of Canadian Municipalities, so far as the
west is concerned, it being generally felt that the Canadian
organization has been of little value to the associations in
western Canada in the past.
A provisional constitution was drafted, and this will be
submitted to the executives of the several associations in the
four provinces for approval, after which a general meeting
will again be called as soon as convenient. Mr. Freeman, of
Lethbridge, chairman of the Urban Union of Alberta, was
a.ppointed provisional chairman, and Mr. Jackman, secretary
of the Rural Union in .Alberta was appointed provisional
secretary. They will send out the draft constitutions to the
various executives, receive their replies and call the next
meeting, when, in all probability, a permanent organization
will be created.
The Montreal Stock Exchange announces that Arthur
Bruneau, sole member of the brokerage firm of Bruneau and
Dupuis, gives notice of the dissolving of the firm, and that
he will now conduct business under the firm name and style
of Bruneau and Cie., vnth offices at Montreal, Quebec and
Sorel, of which firm he will be sole member.
THE MONETARY TIMES
Volume 60.
MANITOBA MAY TAX INCORPORATED COMPANIES
One Per Cent, on Gross Profits Suggested by Provincial
Treasurer — Income Tax Might Then be Unnecessary
(Staff Correspondence.)
Winnipeg, March 16, 1921.
Y^INNIPEG and throughout Manitoba have experienced
"' a cold spell for the last ton days. The weather, how-
ever, is seasonable and business is reported fairly good with
collections improved. Money is somewhat easier and good
investment opportunities are readily taken up.
The province of Manitoba faces a deficit of ap-
proximately $500,000 on current expenditures for 1921. In
this connection a tax of one per cent, of gross profits of all
incorporated companies operating in Manitoba is the effect
of a measure to be brought before the House this session
by the provincial treasurer in the form of an amendment
to the Corporation Taxation Act. This new form of taxa-
tion is expected to give the province a revenue of $.37.5,000.
Province Needs More Revenue
The first announcement of the new tax which is pro-
posed by the government was made at a meeting of repre-
sentative business men of Winnipeg in the oflfice of the
Canadian Manufacturers' Association this week. Hon. Ed-
ward Brown told the gathering that it was essential that
the government have additional revenue for 1921. He
pointed to the fact that an additional $175,000 is required
for mothers' allowance administration and other legislation
which it is necessary to continue in operation. Increased
school grants this year will amount to almost $200,000.
The proposed tax on incorporated companies will not
apply to land mortgage loan trust companies and banks,
wliich already pay taxes under the Coi-porations Taxation
Act. It is expected the tax which the government proposes
will meet opposition from many companies. Those affected
will be concerns which have not been taxed to any great
extent in the past it was pointed out.
At the meeting held on March 15th, Mayor Edward
Parnell demanded that the city receive a portion of the
income tax levied in Manitoba. The city income tax now
before the legislature will be opposed by the Canadian
Manufacturers' Association it is stated. The association
favors the provincial income tax if any is to be made effec-
tive. Whether or not the provincial government will push
for an income tax is problematical. If tjie government is suc-
cessful in having the tax on incorporated companies passed,
it is not likely any strenuous effort will be put forth for
the income tax bill, as there is considerable opposition to it
among the members of the House.
The tenor of the meeting at the very outset was
antagonistic to anything in the shape of increased taxation.
The organizations represented included the Manitoba Em-
ployers' Association, retail Marchants' Association, Canadian
Credit Men's Trust Association, Canadian Manufacturers'
Association, the Building Owners' Association, the Real
Estate Exchange, the Builders' Exchange, the Board of
Trade, the Bankers' Association, the Lumbermens' Associa-
tion and the Wholesalers' Association.
Life Insurance Men to Meet
An important institute of life insurance salesmen is to
be held in Winnipeg from the fifth to seventh of April, this
institute is being held under the auspices of the University
of Manitoba. The attendance last year was 140 and already
250 are expected this year. One of the principal figures on
the program this year will be Courtenay ^arber, who is the
general agent of the Equitable Life of New York, in
Chicago. Another well known Chicago life insurance man
who will take part will be Darby A. Day, the general agent
in Chicago of the Mutual Life of New York. J. H. Castle-
Graham, who is the general secretarj' of the Life Under-
writers' Association for Canada, will come to Winnipeg for
the event, and will take part in the discussions and deliver
an address.
DEFAILTING MUNICIPALITIES
Editor, The Monctmy Times.
Sir, — Under tlie head of "The Crop of Municipal De-
faults" in your issue of March 11, some statements are made
which are not in accord with information in our hands.
As to Swift Current, you say: "The first concrete steps
towards financial readjustment of the former are well under
way, and within the past two weeks representatives of the
bondholders, the banks and the city council have been fre-
quently in conference." Representing several of the larger
holders of Swift Current bonds, I am authorized to state
that as yet they have not been informed, nor do they know
of any conference which has taken place with regard to Swift
Current affairs.
In the first line of the second paragraph you say: "Two
other municipalities in Saskatchewan, although not de-
faulters, are striving hard to make both ends meet. These
are Swift Current and Estevan." I am advised by bond-
holders of each of these municipalities that they are both
in default.
In the last paragraph of the same article you state: "It
has become apparent from these conditions that there are
too many municipalities which desire to discount their future
growth to relieve their pi-esent difficulties, just as a too
liberal discounting of this future led them into their diffi-
culties. The bondholders . . . have, however, united with
the municipalities in a campaign to place the final responsi-
bility upon the province, against which the latter have taken
a commendably firm stand. A municipal debt must be met
by the municipality or not at all." Recently I have been
asked to represent groups of bondholders interested in par-
ticular municipalities in Saskatchewan, but so far I have not
found that they are acting jointly with the municipalities in
a campaign to place the responsibility finally upon the pro-
vince. The bondholders, I may point out, have on various
occasions i-epresented to the government that it, in some
cases, is responsible.
Your readers, particularly those who own western muni-
cipal bonds, will appreciate that their security is endangered
when the legislature increases the boiTowing powers of
municipalities. They may have bought bonds, knowing that
the town which issued them could not borrow beyond a cer-
tain lunit. When, however, the legislature steps in and gives
that municipality additional borrowing powers which lead
to disaster, it is quite obvious that the original bondholders
of the town, relying upon the original limit as to borrowing
powers, are being dealt with inequitably. In such cases the
goveimment is cei-tainly responsible. In bringing to the
attention of the government such cases the bondholders have
not united with the municipalities. On the contrary, authori-
tative bodies created by the government of Saskatchewan
have shown a disposition to ally themselves wdth represen-
tatives of municipalities in bringing pressure upon the bond-
holders to make extraordinary concessions.
Your reference to Humboldt is a case in point. Quite
recently the Local Government Board of Saskatchewan
ordered the town to pay out of moneys levied, collected and
held to redeem debenture coupons a sum to cover the cost
of making repairs to a water and electric light system being
operated at an annual loss of $32,000 or thereabouts. That
you regard the attitude of the Saskatchewan government in
respect of such treatment to debenture holders as being
"commendably finn" is not thinkable. The holders of deben-
tures of Saskatchewan municipalities look to the government
to assist in their protection, which rests largely upon the
general credit of the province. As you state, foreclosure is
impracticable. To what, then, can the debenture holder have
recourse but to the good offices of the government in its
capacity as guardian of its provincial as well as its muni-
cipal credit?
JOHN APPLETON,
Secretary, Dominion Mortgage
and Investments Associaiiov.
Toronto, March 16, 1921.
March 18, 1921
THE MONETARY Ti:\IES
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PRINCIPAL CONTENTS
Editorial: page
Insurance Against Unemployment 9
What the Traffic Will Bear 9
Finance and Crime 10
The Gray Terror 10
Special Articles:
Possibilities of Unemployment Insurance in Canada 5
The Week in Parliament 7
Manitoba May Tax Incorporated Companies 8
Defaulting Municipalities 8
Municipal Accounting and Municipal Finance 18
Soldiers' Insurance 20
Recent Mineral Developments in Alberta 2G
Life Insurance vs. Banks 32
British Columbia Reports Revenue Surplus 32
An Aspect of the Exchange Problem 36
Action by Creditor .\gainst Estate 38
Monthly Departments :
Building Permits 22
Dominion Fina-ncet. in February 24
Weekly Departments:
News of Industrial Development in Canada 40
New Incorporations 42
Insurance Licenses and Agency Notes 42
News of Municipal Finance 44
Government and Municipal Bond Market 46
Corporation Securities Mai-ket 50
The Stock Markets 52
Corporation Finance 54
Recent Fir?s 5G
INSUK.WC K A(;.VINST UNEMPLOYMENT
Til. AT the llominioii government has seriously considered
a system of unemployment insurance for Canada is
shown by the reference to it in the Speech from the Throne,
and by several "feelers" emanating from Ottawa through
the press. The Department of Labor has been making an
investigation of the subject, but no definite announcement
has been made; in fact, the government's desii'e to avoid con-
troversial measures and to hasten through its essential busi-
ness may result in the entire matter being indefinitely post-
poned.
Unemployment is a contingency which cannot be de-
linitely anticipated, but which occurs more or less regularly
ill every country. It is, therefore, an insurable contingency,
the degree of actuarial soundness being dependent upon the
thoroughness of the experience records. Such records are
not accurate at present, as is shown in the article by Gilbert
E. Jackson in this issue, and unemployment insurance on an
actuarial basis is not immediately practicable. The article
on unemployment in last week's issue of The Monetary Times
pointed out the magnitude of the problem of unemployment
in this country, and sooner or later the responsibility for
failure to provide work must be assumed by the state. Apart
from seasonal unemployment, which will always be consid-
erable so long ;>3 outdoor occupations engage a large part
of the population, Canada is in the fortunate position of hav-
ing such resouices and room for further growth, as makes
it impossible for unemployment due to changing conditions
to be indefinitely prolonged, as is the case in countries of
more mature development.
With a view to the ultimate establishment of a system
111' unemployment insurance the subject should, in the mean-
time, be given careful consideration. Should it be optional
or compulsory ? Should it be administered by companies or
by the state? are fundamental questions. The possibility
of company administration seems to have received scant con-
sideration and in a country of some socialistic tendency like
C&nada, it would scarcely be feasible. A plan of limited or
perhaps optional scope would undoubtedly be the safest as
a beginning. The question of ways and means is another one
of difficulty, for one in which the entire funds were raised
by assessments on workers would not be popular, while to
make employers bear the cost would still further widen the
margin between the cost of materials and the price of pro-
ducts. The ultimate assumption of the entire cost by the
government would be the soundest plan for Canada, but here
again the difficulties of pieventing the unemployment pay
from too closely approximating the wages of actual work,
and the raising of sufficient revenue to provide for claims
and resei-ve, would require careful consideration.
\\H.\I THE TRAFFIC WILL BEAK
SINCE the Ca:iadian minister of railways "presented"
Parliament with a $50,000,000 deficit there has been a
feeling of gloom in the ranks of the public ownersl-ip
enthusiasts, while even the private ownership supporters,
keeping in view the doubtful showing of the Canadian
Pacific, are not disposed to urge the return of such a white
elephant as the Canadian National to private hands. The
fact is that only a drastic reduction in operating costs can
rescue the Canadian roads from their difficulties. Several
lines in the LTnited States have already taken this step, and
since the Canadian roads have followed those across the line
closely as regards both rates and wages, similar action here
can be delayed only with serious results.
On March 11 railroad heads in Chicago stated that all
classes of employees would be affected by the readjustment.
At the same time they admitted that e.xcessive freight and
passenger rates are a potential influence in holding back in-
dustry, and that rates cannot be lowered until wages are
reduced and payrolls freed of the thousands of employees
loaded upon them during the war. However, for the present
there would be no reductions in the pay of skilled employees
10
THE MONETARY TIMES
Volume 66.
— the operating forces — but they, too, in time, must meet
the readjustment plan. It was pointed out that the roads
would have to put their houses in order or go into bank-
ruptcy. Freight was not moving, passenger business was
slumping, and when the railroads suffered the entire coun-
try suffered.
Prank admission was made by executives that rates
were too high to permit traffic. Merchants who have to
pay the high rates simply pass the cost along to the ultimate
consumer, and the ultimate consumer in recent months has
shown a decided aversion to paying. He has quit buying,
and thus stagnation has set in along the entire line.
From the labor side there was little comment upon the
proposed action by the executives. B. M. Jewell, represent-
ing the unions, said the men had known for some time that
the propositions were coming, but he would have to wait for
more detailed statements before making formal announce-
ment of the attitude of labor. Other labor officials questioned
the right of the roads to confer with their employees by in-
dividual crafts. They held that the roads would have to
hold one conference with representatives of all employees
and could not deal individually with different unions.
The Chicago and Great Western Railway announced
that conferences would be held this month on a proposed
cut of 20 per cent, in salaries of all employees, from the
president down. The Santa Fe is laying off large numbers
of men to reduce its payrolls. The Alton, Burlington, Rock
Island, Monon, Michigan Central and other lines have called
conferences with their men on the proposition to cut wages
from 8 to 20 per cent.
FINANCE AND CRIME
ANY kind of property is legitimate prey for the criminal.
He has always been a person of discrimination, how-
ever, preferring goods of small bulk but large value, though
of late years there has been a leaning towards the motor
car, which not only assists in its own theft but also helps
the thief to escape. Banks and financial institutions, dealing
in money or negotiable securities have had a full shai-e of
the crime wave which is now passing over the continent.
Spurious bank bills have been appearing in Montreal
during the past few weeks. Two of the banks lost heavily,
and a Bank of Commerce note raised from five to twenty
dollars was even foisted upon the city in payment of taxes.
Raised notes have also been circulating to some extent in
Winnipeg. But the banks have suffered not only from the
crimes of outsiders, but also from those of their own em-
ployees. E. M. Brown, teller of the Bank of Montreal at
Front and Yonge Streets, Toronto, has admitted the theft
of $21,710 from that institution, and the manager of the
St. Maurice Caisse de I'Economie at Three Rivers, Que.,
has been charged with the theft of a large amount from
that institution. In the brokerage field Gerald H. Bruce,
formerly a partner in the firm of Oswald Bros., Montreal,
is charged with falsification and theft involving a sum of
$300,000 and resulting in the assignment of the firm a few
weeks ago. The Cahan case, in which C. H. Cahan, Jr.,
through Corporation Securities, Ltd., made use of a power
of attorney to draw funds belonging to C. H. Cahan, Sr.,
and practically wiped out the estate of the latter, is also
well known.
What is probably the most peculiar case of the kind in
recent years, however, has just come to light in Winnipeg.
Some small north Winnipeg bankers have been accused of
failing to transmit to Europe moneys entrusted to them by
foreigners. Seventy-five of the latter have organized to take
action against the bankers, and a meeting was held in this
connection on March 13. Although one of the bankers has
made restitution in full, a few of the others are willing to
return the money only at the prevailing rates of exchange,
which are stated to be considerably lower than several years
ago, when the money was handed to them. Thus one man
who deposited $100 in 1918, equal at that time to 10,000
marks, is offered $13 now in full payment. On the other
hand, one of the bankers declared that he stands to lose
something like 500,000 rubles, which at one time equalled
$250,000. Now, however, one dollar is the equivalent of
350 rubles. Not all of the persons who allege they were
mistreated have joined the organization, and the 75 mem-
bers entrusted a sum approximately $25,000 to the bankers.
THE GRAY TERROR
THIS is not a moving picture, but the title of a very strik-
ing pamphlet just issued, by A. L. Dawe, secretary of
the Canadian Pulp and Paper Association. "Just as if there
wasn't plenty of paper in the world," the motto of wasteful-
fulness, and "It wouldn't worry me if all the paper in the
world was destroyed," a remark of thoughtlessness, are taken
as texts. The author shows in fiction form how business
would come to a standstill if there were no paper.
Most of the wealth of a civilized country, at least the
title to it, is now represented in paper form. Our currency
is paper, and there would be no banking if notes, securities,
ledgers and pass-books were destroyed. The conduct of
ordinary business depends on paper records. Even our
street cars would probably stop if there were no paper,
which is used not only for fares and transfers, but also for
insulation in the actual physical equipment. The commodities
dealt in on our stock exchanges and other investment
markets are paper commodities. The whole machinary of
present-day commerce and finance depends in fact upon
paper.
That Alberta has real mineral resources is shown by
John A. Allan in an article in this issue. The Alberta min-
eral fields, however, are for development, not for the manu-
facture of mere paper sejurities.
Parliament, the Board of Commei-ce, the Dominion and
provincial governments and numerous cities in Canada failed
to reduce the cost of living. There may, therefore, be reason
in Toi-onto appointing its Medical Health Officer to do so.
A substantial falling off of building permits issued in
January is evidence that construction costs are far too high
in i-elation to the value of property. This is a fact which
experts who urge public housing schemes overlook entirely.
Municipal accounting has been too often left to the
ingenuity of an unskilled municipal treasurer. The standing
of municipal credit would be enhanced by the application of
skilled accountancy. Some suggestions made by R. J. R.
Paterson before the last convention of the Union of Alberta
Municipalities, and printed on pages 18 and 20 of this issue,
are in point.
The Dominion government's financial statement for Feb-
i"uary is exceptionally good, showing revenue of $35,080,612,
ordinary expenditure of $19,788,255, capital expenditure of
$3,218,464, and a reduction of $4,290,143 in the public debt.
There is a surplus of $85,000,000 for the first eleven months
of the fiscal year. On the other hand, the falling off in
customs and excise returns is a warning that revenues will
come down in the process of deflation.
SEEKING COUNSEL
Lawyer (catching burglar red-handed) — Well, my man,
what do you want?
Burglar — Well, sir, I jest dropped in to see if you'd
defend me if I 'appened to get run in over crackin' this crib!
March 18, 1921
THE MONETARY TIMES
Bank of Hamilton
HEAD OFFICE
HAMILTON
Established 1872
Capital Authorized
Capital Paid Up (January 31st. 1921)
Reserve Fund (January 31st, 1921)
$5,000,000.00
4.988,390.00
4,694,195.00
Director*
SIR JOHN HENDRIE. K.C .M.G.. C.V.O., President
CYRUS A. BIRGE. Vice-President
HOWARD S. AMBROSE C. C. DALTON
ROBT. HOBSON W. E. PHIN.
I. PITBLADO, K.C. W. P. RILEY
J. TURNBULL W. A. WOOD
ALAN V. YOUNG
Branches
At Montreal, and throughout the Provinces of
Ontario, Manitoba, Saskatchewan, Alberta and
British Columbia.
Savings Department at all Offices.
Deposits of $1 and upwards received.
Advances made for Manufacturing and Farming
purposes.
Collections effected in ail parts of Canada promptly
and cheaply.
Corretpondence solicited
J. P. BELL - - General Manager
EXPORT TRADE
The extensive foreign con-
nections of this Bank enable
us to place at the disposal
of our customers the best
existing world-wide banking
facilities.
Our local Manager is in a
position to give you both
assistance and advice.
IMPEKIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
The Bond
Between
Bank and
Farm
CTIMULATION of agricultural pursuits
is essential to the welfare of the
Dominion. This Bank plays its part as
a national institution by lending every
effort and its vast resources to support
agricultural activity to the utmost.
Those interested in any enter-
prise of the soil are invited to
confer with our branch managers.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO. ONT.
H. A. Richardson. General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET. E.C.2
THE MONETARY TIMES
PERSONAL NOTES
Gkokgk R. Grifi-in has been appointeil general manag-er
of the Mortgage, Discount anti Finance, Limited, which has
its offices in Toronto. Mr. Griffin has been a larg-e operator in
mortgages and real estate in Toronto for twenty years. Sir
John Willison is president of the company.
Mervyn Smith has been appointed assistant secretary
of the Ontario Equitable Life and Accident Insurance Com-
pany. Prior to joining the Ontario Equitable on December
1st, 1920, as chief clerk, Mr. Smith was for nine years con-
nected with the actuarial department of the Mutual Life of
Canada.
F. D. McCharles, formerly assistant actuary of the
Great-West Life Assurance Company, has been appointed
actuary of the
company. In this
capacity he suc-
ceeds C. C. Fer-
guson, who was
general manager
and actuary, and
whose entire time
is now required
for the direction
of the affairs of
the company out-
side of the ac-
tuarial depart-
ment. Mr. Mc-
Charles graduated
in 1909 from the
Manitoba Univer-
sity with the de-
gree of B.A. Im-
mediately follow-
ing he spent two
years at Prince-
ton University in
post-graduate
work in mathe-
matics. Obtaining
his M.A. degree he
then joined the
actuarial staff of
the Great-West
Life in 1911, and later became a Fellow of the Actuarial
Society of America. After nine years on the staff, he was
appointed as.sistant actuary in January, 1920, and now be-
comes, on the unanimous vote of the directors, chief of the
department which he has represented for such a long while.
J. Fraser Macdonald, of Toronto, formerly connected
with Sterling- Trusts Corporation, has become associated
with the Beemer and Clarkson, real estate, financial and in-
surance brokers. This firm is at present located in the
Confederation Life Building, Toronto, but will shortly move
to quarters in the Excelsior Life Building. Mr. Macdonald
will direct his attention to the buying and selling of resi-
dences and residential land.
OBITUARY
Charles K. Hagedorn, president of the Kitchener Sus-
pender and Button Company, died suddenly at his home in
Kitchener, Ont., this week. He took a keen interest in
municipal affairs, and was a member of the city council for
some years and was the first chairman of the local light com-
mission. He was president of the Board of Trade for two
years, and an active member of the Kitchener and Waterloo
Manufacturers' Association.
BANK BRANCH NOTES
The Royal Bank of Canada has opened a branch at Long
Branch, Ont.
The Banque d'Hochelaga's sub-agency at Daaquam, Que.,
has become a bi&nch.
The Dominion Bank of Canada has purchased a business
corner on Granville St., Vancouver, paying the L. R. Steel
Co. $205,000 for it.
G. D. Dallaire has been transferred from the Canadian
B&nk of Commerce in Montreal to the branch in Havana.
F. A. Stanley, formerly attached to the Windsor, N.S.,
branch of the Bank of Commerce, is now at the Edmonton
branch.
The Bank of Montreal announces the following: T. Y.
Love, manager at Raymond, appointed manager at High
River, Alta.; H. C. Francis, manager at Medicine Hat, ap-
poirtted manager at Lethbridge; J. S. Jones, manager at
High River, appointed manager at Medicine Hat; C. P. Col-
ville appointed ma^nager at Prince Albert; M. E. Jensen ap-
pointed acting manager at Punnichy, Sask.; W. T. R. Hen-
derson, appointed acting manager at Raymond, Alta.; F.
Merrett appointed manager at Schreiber, Ont.; E. A. Moore,
manager at Prince Albert, appointed manager at Thorold, Ont.
DOMINION FIRE INSURANCE CO.
Assets totalling $961,062 are reported by the Dominion
Fire Insurance Co. in its 1920 statement, shown in detail
elsewhere in this issue. This is an increase of $27,000 over
1919. The company's government bonds, however, have in-
creased from $603,266 to $673,666, now constituting TO per
cent of the total assets. Holdings of municipals decreased
from $138,521 to $133,932, and of stocks from $50,245 to
$41,700. Cash decreased from $27,968 to $18,272, but on the
other ha.nd call loans of $12,150 were paid off. The liabilities
.show some important changes as follows: —
1919. 1920.
Net unadjusted losses $ 21,209 $ 90,487
Reserve for accruing taxes . . . 10,700 18,600
Current unpaid accounts 4,200 6,694
Deposit account reinsuring com-
panies 95,259 198,595
Unearned premium reserve . . . 295,509 333,759
Hail reserve 16,349 20,271
Payments due on war loan .... 175,000
Surplus to policyholders 315,848 292,653
$934,076 $961,062
FAVOR TWENTY-PAY LIFE POLICY
More than 150 delegates were present at the 41st
biennial convention of the Grand Lodge of the Ancient
Order of United Workmen, held on March 16 in Toronto.
The report of the treasurer showed that the reserve fund
at the close of 1920 amounted to $1,504,827, an increase
during the past two years of $378,708. It was the
•unanimous decision of the convention to adopt the twenty-
pay life certificate as soon as the Ontario government
passed the necessary legislation, which it is expected to do
this season.
The following officers were elected for the next two
years:— P.G.M.G., E. F. Drake, Ottawa; Grand Master, R. F.
Graham, Ottawa; Grand Foreman, F. P. Burton, Hamilton;
Grand Overseer, J. W. Cook, London; Grand Recorder-
Treasurer, F. G. Inwood, Toronto; Grand Solicitor, A. G.
F. Lawrence, Toronto; Grand Guide, E. W. Kingsnorth,
Toronto; Grand Inside Watchman, W. F. Fairbairn, Ottawa;
Grand Outside Watchman, F. C. Paterson; Grand Medical
Examiner, E. F. Bowie, M.D., Toronto; Executive Board —
R. G. Graham, F. P. Burton, J. Lockie Wilson, E. F. Drake,
C. E. Cameron.
March 18, 1921
THE MONETARY TIMES
13
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I The Sterling Bank |
I OF CANADA |
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Our policy of becoming personally familiar with each
client's business and opportunities — so that we may ren-
der intelligent counsel when requested — has enabled us
to make suggestions which have proved of particular
Head Office
KING AND BAY STREETS, TORONTO
The National Bank of Scotland
Limited
Incorporated by Royal Charter and Act of Parliament. EsTAnLisHED IS'J-S
Capital Subscribed ;{^5.000,000 »25.000,000
Paid up 1,100,000 5.500,000
Uncalled 3,900.000 19,.500,000
Reserve Fund 1,000.000 5,000,000
Head Office - EDINBURGH
WILLIAM CARNEGIE. General Manager. OEOKGE A. HLNTEK, Sec.
LONDON OFFICE— 37 NICHOLAS LANE. LOMDARD ST.. E.C. 4
T. C. RinDELL. DUGALD SMITH,
Manager Assistant Manager
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London, arc retired
on terms which will be furnished on application
f!aoorporB.tdd
- - 1855
Branches
Throughout
THE MOISONS BANK
Capital and Reserve - $9,000,000
OVER 130 BRANCHES
Many commercial failures might
be avoided if business men
would discuss their difficulties
with their bank manager. For
this purpose, the experience of
The Molsons Bank is at your
service.
EDWARD C. PRATT. General Manager
The Standard Bank
of Canada
Established 1873 I.S.' Branches
Capital (Authorized by Act of Parliament) $5,000,000.00
Capital Paid-up 3,SOO,000.00
Reserve Fund and Undivided Profits 4,727,326.90
DIRECTORS
Welungton Francis, K.C. Hubert Langlois,
President Vice-President
W. F. Allen, P, \V, Cowan. T. B. Greening. H. Langlois.
James Hardy. F.C.A.. Thus. H.Wood.
Head Office. IS King St. West TORONTO. Onl.
C. H. EASSON. General .Manager
J. S. LOUDON. Assistant General Manager
SAVINGS BANK DEPART.MENT AT ALL BRANCHES
A Newspaper Devoted to
Municipal Bonds
'T'HERE is published in New York City a daily
and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond offerings.
Write for free speeimert copies
THE BOND BUYER
67 Pearl Street
New York, N.Y.
Income Tax Returns
Our experience in the prepa-
ration of Income Tax Returns
will relieve you of worry in
the interpretation of the In-
come Tax Act as applicable
to your revenue. Our fee is
moderate for the services ren-
dered.
THE BANKERS'
TRVST (jOMB\NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
THE MONETARY TIMES
Volume 66.
KNIGHTS OF COLUMBUS MAY WITHDRAW
The annual meeting of the Supreme Council of the
Knights of Columbus was held in Ottawa, March 13, this
being the first time it met in Canada. On March 14 the
executive met G. D. Finlayson, superintendent of insurance
for Canada, to discuss the new regulations for the control of
fraternal societies operating in Canada, and also appeared
before parliament to protest against the size of the deposits
required under the new law.
LIMITATION OF SHIP OWNERS' LIABILITY
The Imperial Shipping Committee, which was a-ppointed
in June of last year by the British government after con-
sultation with the governments of Canada, Australia, New
Zealand and South Africa, has submitted a report on the
limitation of ship owners' liability under bills of lading.
This report unanimously recommends uniform legislation
throughout the empire on lines of existing acts, but based
more precisely on the Canadian Water Carriage Goods Act,
1910, subject to provisions in regard to exceptional cases
in which goods may be carried at owners' risk, precise defini-
tion of physical limits to shipowners' lia-bility, and fixing of
monetary limits of liability.
It is considered improbable that any legislation along the
lines suggested in the report of the committee will be enacted
by the government interested during the present year.
MONTREAL LIFE UNDERWRITERS' ASSOCIATION
The February meeting of the Montreal Life Under-
writers' Association was addressed by P. F. McCaifrey, local
inspector of income taxation, who refei-red especially to the
payment of commissions to a second party. He stated that
the only deduction which would be recognized by the depart-
ments for commission paid by an agent to some other party
would be payment of commissions to some other duly licensed
agent.
The following were elected to the executive for 1921:
Honorary pi-esident, T. P. Bourgeois, Metropolitan Life;
president, J. D. Young, New York Life; vice-president Louis
Bouvier, Great West Life; second vice-president, F. A. Buck,
Metropolitan Life; secretary, E. Stuart Taylor, Sun Life;
treasurer, W. C. Breedlove, Mutual Life. Board of manage-
ment— L. Miller, Travellers' Life of Canada; D. T. Diplock,
Sun Life; T. E. Bourke, North American Life; W. O. H.
Percey, Canada Life; and James S. Johnson, Imperial Life.
ALBERTA HAIL INSURANCE BOARD
The second annual report of the hail insurance board of
Alberta, presented at the annual meeting of th&t organiza-
tion in Calgary on March 16, shows that satisfactory pro-
gress was made last year. The total area insured within the
hail insurance district wa.s 2,049,004 aci-es. Outside the
district 283,077 acres were insured, making a total of 2,332,081
acres on which insurance was carried at the beginning of the
season. On account of dry, hot winds in a portion of the
province during the latter part of June and early in July,
the insurance on 40,669 acres was cancelled, leaving 2,291,-
412 acres on which the risk was carried throughout the
season. Compared with 1919 these results show a decrease
of 92 per cent, in the acreage of insurance cancelled, and an
increase of 45 per cent, in the total acreage carried.
The percentF'ge of loss in 1920 was about the same as in
1919, being very slightly more than 4 per cent, of the total
insurance, and the total awards were $881,280. The income
amount shows a surplus on the year's operations of $313,886,
and the balance sheet shows a total surplus of assets over
liabilities of $508,986.
1920 LIFE INSURANCE LAWS
The 1920 volume of Life Insurance Laws, published by
the Association of Life Insurance Presidents for its mem-
bers, has now been distributed. The book contains 71 new
statutes affecting life insurance companies in the United
States and Canada. Of these statutes sixty were enacted in
the United States and eleven in Canada. Their distribution
among the states and provinces was as follows: New York,
fifteen; Massachusetts, fourteen; Virginia, eight; Ma^ryland,
seven; Mississippi four; United States Congress, Louisiana,
Manitoba, New Jersey, Ontario and Dominion Parliament,
two each; British Columbia, Delaware, Georgia, Kansas, Ken-
tucky, New Brunswick, North C&rolina, Prince Edward Island,
Quebec, Rhode Island and Saskatchewan, one each.
REGINA FIRE UNDERWRITERS
A. J. Hosie, of Drope and Hosie, was elected president
of the Regina committee of the Western Canada Fire Under-
writers' Association on February 23. Mr. Hosie takes the
place of Geo. Sneath, the retiring president. Other officers
elected were: Vice-president, J. R. Peverett; and executive
committee, H. Stevenson, J. McKenzie and F. Gray. The sec-
retary-treasurer is C. S. Keating.
An announcement was made that the Western Canada
Fire Undei-writers' Association had decided to appoint two
inspectors to look after the work in Saskatchewan in place
of one, and the province for this purpose will be divided into
a northern and southern division.
An address on general matters of interest to the asso-
ciation was given by A. W. Stead, of Winnipeg, secretary
of the association, which was much appreciated.
SECURITY LOAN AND SAVINGS COMPANY
Net earnings of the Security Loan and Savings Co., St.
Catharines, Ont., were $43,591 in 1920, as compared with
$47,357 in 1919, although there was an increase in the
volume of business transacted. The usual dividends were
paid and $15,000 was transferred to reserve, leaving a bal-
ance of $2,390 to be carried forward.
The balance sheet shows mortgage loans at $1,006,221,
as compared with $979,406 in the previous year. The other
assets are made up largely of office premises, $21,100; and
government and municipal bonds and cash, approximating
$200,000. Total assets are $1,234,734, as compared with $1,-
195,955 at the end of 1919. There is no other real estate
on hand.
On the liabilities side, debentures outstanding have been
reduced from $101,264 to $84,465, while deposits have increased
to $421,236 from $345,714. The paid-up capital is stationary
at $532,300, with the reserve fund $15,000 higher at $175,000.
Payments due on mortgages both for interest and principal
were satisfactorily met during the year.
TORONTO SAVINGS AND LOAN COMPANY
A profitable year was experienced by the Toronto Sav-
ings and Loan Company in 1920, when net earnings amounted
to $155,825, as compared with $148,389 in 1919. In addition
to the regular dividend of 10 per cent., a bonus of 2 per cent,
was declared. The bonus paid in the previous year was 4 per
cent.
The assets of the company are slightly lower at $4,165,-
116, and are made up chiefly as follows: Mortgages, $266,964;
stocks owned. $2,501,886; real estate owned, $1,157,056. Cash
on hand and in banks is $157,726, as compared with $127,432
in 1919.
The company's head office is at Peterborough, Ont. The
capital of $1,000,000 is fully subscribed and paid up, and
there is a reserve fund of $1,100,000.
March 18, 1921
THE MONETARY TIMES
15
Bank of New Zealand
ESTABLISHED IN 1861
Bankers to the New Zealand Government
CAPITAL
Paid-Up Capital ($13,528,811) and Reiene Fund
($12,166,250) $25,695,061
Undi.ided Profit! 713.039
A«(re(ate Aiteti at 31st Harcb. 1920 257.500.944
Head Office:
WELLINGTON
NEW ZEALAND
H. BUCKLETON
General Manager
THE BANK OF NEW ZEALAND has Branches at
Auckland. Wellington. Christchurch, Uunedin. and 203 other
places in New Zealand : also at Melbourne and Sydney
(Australial. Suva and Levuka (Kiji). Apia (Samoa), and
London.
The Bank has facilities for transacting every description
of Banking Business. It invites the establishment of Wool
and other Produce Credits, either in sterling or dollars, wiih
any of its Australasian Branches.
LONDON OFFICE: 1 Queen Victoria Street, Maosion Home, E.C. 4
CHIEF CANADIAN AGENTS :
Canadian Bank of Commerce Bank of Montreal
fHomeBankofCanada
BONDS AND FOREIGN EXCHANGE
Every Branch of the Home Bank is in ready
communication with the Bond and Foreign
Exchange Departments at the Head Office, and
any enquiries made through any branch will
receive prompt attention.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s.|4
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
head ofkicb. weyburn. saskatchewan
Branxhks in Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midale
Griffin. Colgate. Panginan, Radville, Assiniboia, Benson,
Verwood, Readlyn. Tribune, Expanse. Mossbank, Vantage,
Goodwater, Darniody, Stoughton, Osage, Creelman. Lew-
vau, Froude and Ardill.
A GKNKRAL BANKING BUSINESS TRANSACTED
H. O. POWELL, General Manager .
TH€ M€RCMANT5 BANK
Head Office : Montreal. OF CANADA Established 1 864.
Capital Paid-up, $10,029,622 Reserve Fond and Undivided Profits, $9,475,585
Total Deposits (30th October, 1920) - Over $170,000,000
Total Assets (30th October, 1920) Over $209,000,000
Board of Dirtctort :
SIR H. MONTAGU ALLAN Vice-President
A. J. DAWES
Sir F. OrrOse-Lkwis, Bart.
Hon. C. C. Bailantynk
F. Howard Wilson
Fakquhar Robertson
Geo. L. Cains
Alfred B. Evans
Thomas Ahearn
Lt. -Col. J. R. Moodie
Hon. Lorne C. Webster
E. W. Kneeland
lioRDON M. McGregor
General Manager D. C. Macarow
Supt. of Branches and Chief Inspector : T. E. Merrett
General Supervisor - W. A Meldrum
AN ALLIANCE FOR LIFE
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
Many of the large Corporations and
Business Houses who bank exclus-
ively v^ith this institution have done
so since their beginning.
399 Branches in Canada, estending from the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramsay and C. J. Crookall, Agents
London, England, Office, 53 Cornhill : J. B. Donnelly, D.S.O., Manager
Bankers io Great Britain : The London Joint City & Midland Bank. Limited, The Royal Bank of Scotland
THE MONETARY TIMES
COBALl OKE SHIl'MENTS
The following are the shipments of ore from Cobalt
Station for the week ended March 11: —
La Rose, 69,126 pounds. The total since January 1 is
1,634,926 pounds, or 817.46 tons.
AUTOMOBILE INSURANCE RATES RAISED
Further changes in rates, effective March 1, were put
into effect by the Canadian Automobile Underwriters' Asso-
ciation. Collision rates were increased by percentages up
to 40, varying according to districts and coverage. Theft
rrtes were increased also, but there was no change in public
Indiility, property damage, or fire rates.
SASKATCHEWAN FARMERS' MUTUAL FIRE
Another favorable year was experienced by the
Saskatchewan Farmers' Mutual Fire Insurance Co. in 1920,
new business written amounting to $15,773,842, as compared
with $13,554,397 in 1919. Assessments and premiums
totalled $113,394, against $104,414 previously, while loss
claims were some $4,000 lower at $62,785.
Thirteen years in the field has enabled the company to
build up one of the strongest and largest mutual fire busi-
nesses in the province of Saskatchewan. The insurance in
force at the end of December 31, 1920, amounted to $37,651,-
251, compared with $31,357,755 at the end of the previous year.
Total assets at $505,449, as compared with $390,523 in 1919,
show a balance over liabilities of $451,139. Further details
of the company's operations last year will be found else-
where in this issue.
TORONTO INSURANCE CONFERENCE
At the annual meeting of the Toronto Insurance Con-
ference, an organization of brokers in that city, on March 3,
the following officers were elected: — President, G. H. Muntz,
of Muntz and Beatty; 1st vice-president, J. H. Ewart, of J.
H. Ewart and Co.; 2nd vice-president, H. Begg, of Shaw and
Begg. Joseph Murphy, of Murphy, Love, Bascom and Hamil-
ton, was the retiring president.
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun a.nd Co. during the week ended March 11, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: — •
Date.
^
6
a
C3
M
o
M
eq
w
OS
o
O
cy
S
<
a
'Z,
^;
a;
H
o:
Mar. 11 . .
..14
13
0
0
4
1
0
0
0
38
16
Mar. 4 . .
.. 5
12
0
2
1
2
9
0
0
31
16
Feb. 25 . .
. .16
14
0
4
2
2
8
2
0
48
12
Feb. 18 . .
.. 6
28
2
2
2
0
4
0
0
44
16
GRADUAL IMPROVEMENT IN BUSINESS
City stores in the Toronto district report an improve-
ment in business since March 1, according to Dun's Bulletin
of March 12. Regarding the Montreal district, the following
is said : "The protracted tha-w has worked havoc with country
roads, but favors the early opening of navigation, and the
government ice-breakers are expected to start work next
week on opening up the channel between Quebec and this
city. General trade conditions are pretty much as last noted,
with collections well maintained as a whole, and the volume
of failures is below expectations. The iron market is dull,
foundrymen being comparatively lightly employed for some
time past, but quotations are fairly steady at $41.80 for
foundry iron, and furnace men claim present quotations do
not much more than cover cost of production. In general
hardw&re a fair turnover is reported, notwithstanding the
hanging back of some buyers in the anticipation of lower
prices. For paints, oils, etc., there is a gradual but steady
growing demand. The distribution of general groceries is
about normal, and variations in values are few. The refinery
figure for st&ndard granulated sugar remains at 10 V2 cents.
Molasses values are unsettled, round lots of fancy Barbadoes
being offered at 80 cents, about half the figure quoted last
fall. Canned goods are moving freely and some authorities
seem disposed to prophesy a shortage befoi-e new pack comes
due."
EXCHANGE QUOTATIONS
Quotations of exchange on European countries and the
United States as at March 17, 1921, with comparisons, are
given below. The Canadian figures are supplied by the
Imperial Bank of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
Can., Mar. 10. Can., Mar. 17. N.Y., Mar. 17.
London, cheque . . 442.50 447.00 390.00
France 8.08 8.00 6.94
Germany 1.78 1.84 1.59
Belgium 8.45 8.37 7.25
Italy 4.19 4.26 3.79
Switzerland .... 19.20 19.82 17.29
United States ... 1411o p. 14iyui p.
WEEKLY BANK CLEARINGS
The following are the Bank Clearings for the week ended
March 17, 1921, compared with the corresponding week last
year:—
Week ended Week ended
Mar. 17, '21. Mar. 18, '20. Changes.
Montreal $ 95,505,180 $125,013,609 — $29,508,429
Toronto 89,378,557 99,769,545 — 10,390,988
Winnipeg 40,503,485 40,632,613 — 129,128
Vancouver 13,078,233 . 15,620,871 — 2,542,638
Ottawa 7,062,519 8,423,789 — 1,361,270
Calgary 5,986,410 8,111,861 — 2,125,451
Hamilton 5,744,080 7,279,902 — 1,535,822
Quebec 5,776,516 4,435,177 + 1,341,339
Edmonton 4,143,483 5,477,035 — 1,333,552
Halifax 3,052,730 4,322,455 — 1,269,725
London 2,893,297 3,160,952 — 267,655
Regina 3,824,514 3,808,117 + 16,397
St. John 2,619,568 3,545,471 — 925,903
Victoria 2,467,905 2,711,026 — 243,121
Saskatoon 1,771,473 1,873,102 — 101,629
Moose Jaw 1,306,378 1,432,242 — 125,864
Brantford 1,090,462 1,216,798 — 126,336
Brandon 594,263 650,503 — 56,240
Fort William .... 767,796 733,788 -+- 34,008
Lethbridge 637,165 875,817 — 238,652
Medicine Hat .. .. 342,800
New Westminster 559,231 046,302 — 87,071
Peterboro 877,563 846,981 + 30,582
Sherbrooke 1,209,206 936,405 + 272,801
Kitchener 795,125 1,114,488 — 319,363
Windsor 2,698,957 3,167,156 — 469,199
Prince Albert . . . 314,107 445,040 — 130,933
Totals $294,658,203 $346,251,045 — $51,592,842
Moncton 1,168,420
March 18, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 18171
PAID UP CAPITAL ^M, * 24,655,500.00
RESERVE FUND .^SJSA 16,750,000.00
RESERVE LIABILITY OF PROPRIETORS - WPIb35»|^\ ------ 24,655,000.00
^J^^g^^^^^Ky - ----- $ 66,061,000.00
AGGREGATE ASSETS 30th SEPT., 1920 ^i^Ot^jo^Jiiiy $362,338,975.00
Sir JOHN RLSSELL FRENCH. K.B.E.. General Manager
:(57 BRANCHES and AGENCIES in the Australian States. New Zealand, Fiji. Papua (New Guinea), and London. The Bank transacts every description
of Australasian Banking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2.
A<ii:.-jrs: HANK Ol' .\10N1 KICAL. ROYAL BANK Ol- CANADA.
BUSINESS FOUNDED I79S
INCORPORATED IN CANADA 1897
AMERICAN BANK NOTE COMPANY
ENGRAVERS AND PRINTERS
BANKNOTES, BON DS. MUNICIPAL DEBENTURES, STOCK
CERTIFICATES, CHEQUES AND OTHER MONETARY DOCUMENTS
Special Sateguards Afiainst Counterfeitinii Work Acceptable i
Head Office and Works : OTTAWA 224 Wellington St.
BKANCH OFFICES
It Stock Exchanges
Gborgb Bdwards, P.C.A. Akthur H. Howards. 1
H Pbrccval Edwards W. Pomerov .Morgan W, Herdfr
A, Gkoffkhy Edwards Oswald N, Edwakds ChariesE.
T. J. Macnamara T. p. Gecoie J.L.Atkins
K. A. .\Ui'i' \V. A. LOKIMEK .loHN .M. En
EDWARDS, MORGAN & CO.
CHARTERED ACCOUNTANTS
OFFICES
TORONTO .. ., CANADIAN MORTGAGE BUILDING
CALGARY ,.
VANCOUVER
WINNIFKG ..
MONTREAL
CORRESPONDENTS
HALIFAX, N.S. ST. JOHN, N.B.
LONDON, ENG. PARIS, FRANCE,
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK, USA
ESTABLISHED 1879
AUoway & Champion
Bankers and Brokers
Membera of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commisaion.
Winnipeg, Montreal, Toronto and New York Exchangei
THE
TorotstoGeaekalTrusts
CORPORATIOiS
DIVIDEND No. 99
Notice is hereby given that a dividend of Three
Per Cent. (3%) has been declared upon the Paid-up
Capital Stock of this Corporation for the quarter
ending March .31st, 1921, being at the rate of
TWELVE PER CENT. PER ANNUM,
and that the same will be payable on and after
Friday, the first day of April, 1921,
The Transfer Books of the Corporation will be
closed from Tuesday, the 1.5th day of March, until
Thursday, the 31st day of March, 1921, both days
inclusive.
By Order of the Board of Directors,
A. D. LANGMUIR.
General Manager,
Toronto, March 1st, 1921.
THE MONETARY TIMES
Volume 66.-
Municipal Accounting and Municipal Finance
Accounts Must be Conducted on Sound Basis — Application of
Accounting Theory to Municipal Requirements — " Setting-Off "
Income Against Outgo— Finances Can be Improved by Better Methods
By ROBERT J. RITCHIE PATERSON
Ritchie, Paterson and Co., Chartered Accountants, Lethbridge and Medicine Hat, Alta.
IN addressing- myself to the general subject of Municipal
Accounting I have concluded that something might
perhaps be gained by an abstract treatment of it rather
than by being specific in the sense of a review of its ac-
counts. The subject matter of my remarks naturally divides
itself into two parts viz: (1) Municipal Accounting Theory,
and (2) Its practical application to Blunicipal Finance.
The first does not necessarily embrace the second and
can stand alone. The second, however, "Municipal "Finance"
without the first is as a rudderless ship or, without it in
any degree other than that of its highest available efficiency
is as a ship having an impaired directing force or, yet
again, without an equally high human ability to fully grasp
and intelligently comprehend the utility and purpose of such
directing force, then the rudderless condition becomes more
or less existent.
In entering this field of accounting- we come in contact
■with that of governmental bodies and the outstanding- dis-
tinctions recognizable in contrast with that of the more gen-
erally known commercial field are first, the absence of capital
and secondly, the absence of the principle of profit-making.
Capital Requirements
The fact of the absence of capital having been men-
tioned we will proceed to investigate this phase, first in the
sense of fixed capital.
It is immediately admitted that in every municipality
there are expenditures which Should obviously be capitalized
for a more or less extended period in accordance with their
specific nature. From what fund soui'ces then are these ex-
penditures made possible? The answer is to be found in
one of the only two methods open to all municipalities by
which their financial requii'enients can be supplied, viz, loans.
These loans are of two classes "long-term" and "short-ten-n."
The former, usually taking the foi-m of debenture issues,
may be looked upon as the substitute for fixed capital, -while
the latter may be looked upon as the substitute, or one of
the substitutes for working capital. The second and re-
maining method is supplied by the levying of taxes.
Inasmuch as a municipality's prime function is to render
certain well defined and recognized services to its citizens
annually at cost, on the basis of a charge thei-efore, there
is thereby involved the preparation of this annual cost in
a form variously known as "the estimates" or "the budget."
Arising from the fact of the absence of working capital on
the part of the municipality, wherewith to carry out its func-
tions until such time as the actual annual cost has been
specifically determined, resort is had to estimating what that
annual cost may be and this is embodied in a document
known as "the estimates." Once this annual estimated cost
has been determined it assumes a very practical form in that
it is ratably distributed against the citizens and in the form
of taxes continues to function for the purpose of provid-
ing the financial means of satisfying the indebtedness which
the incurring of the annual actual cost entails. Mark the
vital distinction between its functions as "estimates" and
its function as "taxes."
The municipality's undertaking to render certain ser-
vices to its citizens involves, at the outset, and from time
to time thereafter, the incurring of expenditures which, if
vievped from the standpoint alone, of their full inclusion as
a part of the annual cost of the year in which they are in-
*An address before the Union of .41berta Municipalities'
Convention, Lethbridge.
curred, immediately designates them as of an extraordinary
classification. Where these extraordinary expenditures are
of a more or less enduring nature and continuing utility,
and the cost is of a magnitude that fully justifies, in the
light of the immediately preceding reservations, the easing
of the burden of their acquisition over a period of years,
thereby obligating taxpayers of ensuing periods largely on
the ground of their participation of equal benefit, then in
such cases, the issue of debentures appears to be not only
justifiable but imperative.
The annual cost for municipal services would include
the fixed charges under such extraordinary expenditures,
consisting of interest thereon and provision for depreciation
and not the amount of the extraordinary expenditures them-
selves.
We have now established the following facts: —
(1) That a municipality has two distinct types of ex-
penditure: (a) Those incurred in one fiscal period for
which final provision falls to be made in several succeeding
fiscal periods; (b) those incurred and for -which provision
is made in the same fiscal period. Note: Provision being
used in the sense of taxes.
(2) That a municipality's financial obligations are cap-
able of immediate satisfaction out of funds provided in one
of two ways: (a) Proceeds of loans (debenture issues);
(b) taxes and ultimately solely by the latter.
It seems right and proper that in all respects and at
all times this clear-cut distinction in municipal expenditures
and the sources providing- for the satisfaction of these,
should, in their entirety, be preserved in its accounting and
in the presentation of its accounting data.
If we so follow the distinction which these two facts
bring out, we find a certain relationship existing between
the facts themselves, viz: In the (a) and (b) of each, or
to be specific, the extraordinary expenditures are usually
directly related to the debenture issues and the ordinary ex-
penditures are, more or less, directly related to the taxes.
Let us therefore identify these two classifications by the dis-
tinctive funds with which they have to do, viz: "Debenture"
and "taxation."
In all municipalities we have to take account of the fact
that while a certain amount of "cash" transactions take
place, there is for various reasons, quite a preponderance of
"credit" transactions. The levying of taxes alone establishes
this condition. As a consequence, all accounting provisions
must be drawn having regard to this very important fac-
tor, i. ^;
Debenture Issues
Under "debenture" funds there would fall for record
the following information in balance sheet (asset and lia-
bility) accounts only.
(1) (a) Creation of the debenture debt. (b) Re-
demption of the debenture debt.
(2) (a) Proceeds from debenture debt, (b) Disposi-
tion of such proceeds.
It will readily be seen that an absolute accounting
should at all times be possible by the off-setting of either
(a) or (b) of 1, or a combination of these against (a) or
(b) of 2, or a combination of these. This is a very desirable
and essential feature of municipal accounting, in my opinion,
especially in a public presentation of it. It should always
portray strikingly and succinctly the following: —
The vested interests of the municipality, capable of his-
torical narration.
The bonded debt incurred against this.
March 18, 1921
THE MONETARY TIMES
Your Lawyer Dislikes
Post-Mortem Litigation
He dislikes to see your widow and your children deprived of what
you intended forthem because of a dispute'overa will or lackof a will-
Think, then ! This might happen to your family unless you have
a properly-made Will.
Have you ? If not, you should make one at once, and you should
appoint The Union Trust Company as executor, so that your wishes
will be carried out faithfully and without bias or legal complications.
Write now for a free copy of our booklet "'Why a Will." You will
be interested.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS usu
Winnipeg TORONTO London, Eng.
The Permanent Executor
A MAN by becoming an executor dn
■** still has his private business, hi
bound to take first place in his plans
He is still liable to run out of
town — for a business trip, or a
lishing trip.— perhaps just when
your wife most feels the need of
consulting him.
He is still subject to illness,
years, loss of business acumen-
death.
Your affairs need a permaD-
ent executor. Such as The
Canada Permanent TruRt Co.
The manafiemcnt of your affai
personal interests, which are
This company's businea* is
attending to your bunness. This
company is never beyond your
reach.— it takes no vacations, and
so is never unavailable through
This company is not subject
to incapacity or death. Its excep-
tional personel is continually be-
ing recruited with highly trained.
!spni
liblc
ntinuous, vigilant.
The Canada Permanent Trust Company
Paid-up Capital 14 TORONTO STREET
S 1 .000,000 TORONTO
Manager. Ontario Branch: A. K. Hessm
The most important document a person of large or small
means is called on to prepare is his
LAST WILL AND TESTAMENT
It means the happiness and welfare of those most dear.
Ask for Booklet : " Make Your Will."
CAPIT.'M.. ISSUED AND SUBSCRIBED . .Si. 171, 700. 00
PAID-UP CAPITAL AND RESERVE 1,172.000 00
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE: WINNIPEG. CAN,
ni<A\'CHi;s :
SHARP & HORNERI
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
The
Security
Trust
Company,
Limited
H
»d Office
ACTS
Calgary,
Alberta
Liquidator, Truitee
, Receiver
Stock and Bond Broken,
Ad
ministrator, Execnlor.
General Financial Agents.
\\ M
■ONWCHKK
I're";. .-in.l M.
n.„,„. n„ec.o,. 1
Financial Strength
'X'HE principles upon which a
Bank is founded, the number of
years it has been in operation, and
the policy followed during these
years — these features, combined with
its present standing, form the crite-
rion of the strength of a Bank.
The Bank of Montreal began busi-
ness in the year 1817, with a modest
capital of $1,250,000, and for over
a century it has followed a conserv-
ative— aggressive policy, until to-day
its capital and reserve fund total
$40,000,000 and its total assets are
in excess of $560,000,000.
BANK OF MONTREAL
HEAD OFFICE: MONTREAL
Branches in every important city and
town in the Dominion and Newfoundland
20
THE MONETARY TIMES
Volume 66
Whether or not the proceeds of such bonded debt has
been fully expended and if not, how held.
The redeemed equity of the municipality in such vested
interests and where possible an approximated present value
of that equity
Under "taxation" funds there would fall for record ef-
fecting revenue and expenditure accounts (1) as well as
balance sheet (asset and liability) accounts (2) the follow-
ing:—
(1) (a) The various kinds of taxes levied, (b) The
various kinds of specific expenditures for which these various
taxes were levied. (By purposes of levy.)
(2) (a) (1) The various assets which the levy of taxes
and their collection or non-collection create. (2) Those
assets created out of more or less specific short-term loans.
(3) Those assets created unconsciously, at least in a financ-
ing sense, without any specific provision by loan or other-
wise being made for them.
This latter, strangely so, is unfortunately fairly com-
mon.
(2) (b) The various liabilities created by virtue of the
existence of (l)(b) and (2) (a 2 and 3).
The foregoing remarks have been expressed from the
viewpoint of the municipality proper. The question of the
accounting treatment of public utilities within the jurisdic-
tion of the municipality need only vary in degree and not
in principle in the generalities given.
This concludes the first part of my remarks.
Application of Theory
In regard to municipal finance and the application of
municipal accounting theory thereto, we enter an entirely
different atmosphere from that which we have just left.
Finance as applied to municipalities may be generally and
broadly defined as "ways and means." "Ways and means"
may be again transposed to mean "dollars and cents" or
"cash."
We have acknowledged in the first part that many of
the transactions must necessarily be of a "credit" nature.
This is, under some circumstances not altogether unusual,
diametrically opposed to the "cash" condition. When these
circumstances are operative and even when not, and again
because of the lack of working capital within itself, tlie dic-
tum of the municipality conservatively and efficiently ad-
ministered must necessarily be "Have the cash from your
taxpayers, or equivalent assurance that you will have it in
time to meet your financial obligations at maturity, before
you incur any form of indebtedness at all."
So far as "debenture" fund operations are concerned it
is particularly imperative that funds be actually in hand
before this class of expenditure is launched upon at all, for
the reason that its general admission to this classification
precludes any other foiin of financing other than by specific
loan.
As regards "taxation" funds, financing here resolves
itself into the framing of "the estimates" upon a "cash"
basis throughout, to the extent of levying a rate which will
yield directly, within the fiscal period, sufficient cash to
fulfill the obligations incurred on behalf of that fiscal period.
In bringing these remarks to a close I desire to record
my personal pleasure at being present, as a g-uest, at your
sessions and. to give expression to the realization that the
deliberations of this convention are set towards gi-appling
with the unquestioned serious financial situation in which
every municipality, not only in this province but in all the
western provinces, finds itself.
So far as the Alberta situation is concerned it is worth
"bearing in mind that the introduction of annual tax sales
has not of itself developed this serious aspect, but' has
merely served to pointedly reveal one of a few years stand-
ing.
A solution must and will be found and at least so far as
the larger towns and the cities are concerned it can only
satisfactorilv be reached, in my judgment, through a re-
vision of the prevailing fixed charges upon the existing
bonded ilebt. I would therefore commend to vour serious
deliberations the evolving of some acceptable plan having
this in view as the objective to be reached.
In conclusion permit me to remind you of the pre-re-
quisites to sound, practical, municipal finance which I have
endeavoured to trace for you in these remarks coupled with
the assurance that they are as relative to the smallest as to
the largest municipality in the land.
(1) The fundamental and structural basis — An effici-
ent and comprehensive accounting.
(2) The human ability to interpret and literally read
the message which such an accounting condition has to con-
vey.
(3) The imperative necessity of living within your an-
nual estimates as cash drawn.
(4) The incurring of no extraordinary expenditure
which has not been previously provided for by specific loan
and not vidthout having first given a due regard to the
ability, present and conservatively prospective, to redeem
such loan, through taxes, at maturity.
$6,000,000 IN SOLDIERS' INSURANCE
Schedule of Rates Under Soldiers' Insurance Act — Business
is Reported in Increasing Volume
UNDER the Soldiers' Insurance Act, passed at the 1920
session of Parliament, $6,000,000 of business has been
vmtten since it went into effect on September 1. The total
for the first three months was $3,282,000, so that applications
in December and Januarj' were more numerous. The first
year of operation is necessarily experimental, and some
changes have been urged. The system as a whole, however,
appears to meet legitimate needs. The schedule of rates in
the Act is as follows: —
Premium Rates
ithly Rates for $1,000 Insurance
Single
Payable
at Death.
Premium
for $1,000
Payable for
Payable
Insurance
till
payable
e. 10 years.
15 years.
20 years.
age 65.
at death.
54 $2.48
$1.82
$1.64
$1.08
$237.72
»6 2.52
1.86
1.66
1.10
242.22
38 2.66
1.90
1.68
1.12
246.92
10 2.62
1.94
1.60
1.14
251.80
U 2.6S
• 1.98
1.64
1.18
256.86
18 2.74
2.02
1.68
1.22
262.06
!2 2.80
2.06
1.72
1.26
267.52
24 2.86
2.10
1.76
1.30
273.12
28 2.92
2.14
1.80
1.34
278.98
J2 2.98
2.20
1.84
1.38
284.98
36 3.06
2.26
1.88
1.42
291.20
10 3.12
2.32
1.92
1.48
297.64
14 3.18
2.38
1.96
1.B4
304.30
18 3.26
2.44
2.02
1.60
311.22
52 3.34
2.50
2.08
1.66
318.28
i8 3.42
2.66
2.14
1.72
325.60
54 3.60
2.62
2.20
1.78
333.18
?0 3.58
2.68
2.26
1.86
340.98
r6 3.66
2.74
2.32
1.94
348.98
52 3.76
2.82
2.38
2.02
367.26
iS 3.86
2.90
2.44
2.12
365.76
56 3.96
2.98
2.50
2.22
374.48
)4 4.06
3.06
2.58
2.32
383.46
12 4.16
3.14
2.66
2.44
392.64
20 4.28
3.22
2.74
2.56
402.08
!8 4.40
3.32
2.82
2.70
411.74
i8 4.62
3.42
2.90
2.84
421.66
13 4.64
3.62
3.00
3.00
431.78
)8 4.76
3.62
3.10
3.16
442.10
rO 4.90
3.72
3.20
3.36
462.68
i2 5.04
3.84-
3.30
3.58
463.42
)6 S.18
3.96
3.42
3.82
474.40
10 6.32
4.08
3.54
4.08
485.58
!4 5.48
4.22
3.66
4.38
496.92
i8 5.64
4.36
3.80
4.74
508.46
>4 6.80
4.50
3.94
5.14
520.14
!2 5.98
4.66
4.10
5.60
531.94
)0 6.16
4.82
4.26
6.16
543.94
10 6.34
5.00
4.44
6.82
656.02
SO 6.64
5.18
4.62
7.66
668.22
)2 6.76
6.38
4.82
8.70
580.54
re 6.98
B.68
5.04
10.08
692.90
)2 7.20
6.80
5.28
12.00
605.32
SO 7.44
6.04
5.52
617.82
;S 7.68
6.30
5.78
630.30
)0 7.96
6.56
6.06
642.82
!2 8.24
6.84
6.36
655.28
)6 8.54
7.14
6.70
667.72
Note. — Rates for ages above 65 will be computed on tbe same basis as
those shown above, and will be furnished on application.
March 18, 1921
THE MONETARY TIMES
21
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
CANADA PERMANENT
MORTGAGE CORPORATION
QUARTERLY DIVIDEND
Notice is hereby given that a Dividend of THREE
PER CENT, for the current quarter, being at the rate of
TWELVE PER CENT. PER ANNUM
on the paid-up Capital Stock of the Corporation, has been
declared, and that the same will be payable
FRIDAY, THE FIRST DAY"OF APRIL
next, to Shareholders of record at the close of business on
the Fifteenth day of March.
By order of the Board,
GEO. H SMITH. Assistant General Manager.
Toronto, February 23rd. 1921.
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building, London, Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PIRDOM. K C . President NATHANMEL .MILLS. .Manaser
The Hamilton Provident and Loan Corporation
Head Office, Kins Street, Hamilton. Ont.
Capital Paid-up, $1,200,000. Reiervc Fund and Surplua
Profila, $1,315,587.70. Total Aitetn, $4,800,104.82.
TRUSTEES AND E.XECUTOKS are authorized by Law to invest Trus
Funds in the DEBENTURES and SA\1N0S DKPART.MENT of thi-
GEORGE HOPE. President
I). .M. CAMERON. General Manauc
The Ontario Loan & Debenture Company
DIVIDEND NO. 135.
Notice is hereby given that a QUARTERLY DIVIDEND
of 2'4 per cent, for the three months ending 31st
March, 1921 (BEING AT THE RATE OF TEN PER
CENT. PER ANNUM) has been declared on the paid-up
capital stock of this Company and will be payable at the
Company's Office, London, Ontario, on and after the 1st
.April next to -Sliareliold'ers of record of the 15th March.
By order of the Board.
A. M. SMART,
Manager.
London. Canada, 1st March, 1921.
r~\\'ER 200 Corporations,
^'^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Quarterly Dividend
Notice is hereby given that a Dividend of Two and one-iiuarter per
cent., being at the rate of Nine per cent. i>er annum, upon the paid-up
Capital Stock of this Company, has been declared for the current
Quarter, and that the same will be payable on and after 1st April.
19*1. to Shareholders of record on the books of the Company at the
close of business on ISth inst. By order of the Board.
Tornnto, :<rd \lnrch. I'lil WALTRR Gl LLF.SPIR. .Manascr
Six per cent. Debentures
I ntcrest payable half yearly at par at any bank in Canada-
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
/nqairies Incited
Cleneral Manager Llenl.-Col. «. U. DOBRELL
Canadian Guaranty Trust Company
HELA.D OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official .Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in .Saskatchewan.
Branch Office - - Swift Current, Saskatchewan
JOHN R LITTLE, Managing Director
22
THE MONETARY TIMES
Volume 66.
BL'ILDING PERMITS REGISTER FURTHER DECLINES
RESULTS IN WEATHER INSURANCE
BUILDING permits issued in 56 cities showed a further
decrease during January, 1921, as compared with the
preceding month, the total value falling from $4,654,479 in
December to $2,372,512, a decline of $2,281,9(57, or 49 per cent.
All the provinces except Manitoba participated in this de-
crease, the reduction of $925,590 in Ontario being the largest.
As compared with the figures for the corresponding month
in 1920, there was a decrease of $1,580,366 or practically 40
per cent., the value for January, 1920, having befen $3,952,878.
Of the larger cities, Montreal and Vancouver registered
reductions in the value of the pennits issued as compared
with December, with increS'ses over January of last year.
Winnipeg and Edmonton showed increases in both compari-
sons, but, on the other hand, Toronto reported losses in both
eases. The following are the details, as compiled by the
Department of Labor: —
DEPARTMENT
OF LABOUR
FIGURES
Nova Scotia
•Halifax
New Glasgow.
*Sydney
New Brunswick..
Fredericton . . . .
•iMoncton ........
•St.John
Haisonneuve... /
•Quebec
Shawinigan Falls
*Sherbrooke
*Three Rivers
♦Westmount
Ontario
Belleville
•Brantford
Chatham, r
•Fort William....
Gait
"Guelph
•Hamilton
•Kingston
•Kitchener
•London
Niagara Falls...
Oshawa
•Ottawa
Ou-en Sound
•Peterborough...
•Port Arthur
•Stratford
•St. Catharines..
•St. Thomas
Sarnia
Sault Ste. Marie
• Foronto
Welland
•Windsor
Woodstock
Manitoba
•Brandon. . . .
St. Bonif.ice
•Winnipeg. . .
Saskatche
•Moose Ja
•Regina .
•Saskatoc
ILBERTA . ,
•Calgary
•Edmonton
Lethbridge...
.Medicine Hat.
Br
COLUM
Na
•New Westminster.
Point Grey
Prince Rupert.. .
South V*ancouver. .
•Vancouver
•victoria
Total— 56 cities..
•Total— 35 cities.
52.925
41,725
207„385
47,155
14,175
196,865
Nil.
50
Nil.
5.770
27,500
10,520
198.350
5,525
71,643
Nil.
Nil.
4,458
16,350
5,525
55,185
182,000
Nil.
12,000
875,715
412,640
587,105
672,900
353,225
227,655
80,660
13,315
110,650
Nil.
Nil.
4,700
28,500
8,000
1.000
1,375
35.700
147.100
92,280
2.400
46,000
2,187,642
1,262.052
2,606,163
2,000
19,300
3,000
5,230
13,900
130,470
5,200
Nil.
8,450
1.825
13,0C0
550
Nil.
2.000
Nil.
4,200
4,875
8,600
192,550
347,650
135,450
1,655
1.305
6,655
1,320
13,970
6,3.50
117,590
40,100
29,685
66,300
19.840
Nil.
2.600
2,200
4.100
92,700
11.100
79.010
4,000
5,000
4,000
392,724
5,787
4,900
4,755
1,250
1,230
355
5,055
4,198
19.199
18.335
11,060
Nil.
3.050
2,800
18,830
30,510
35.720
5,000
20.000
6,900
1,117,083
584,620
1,469,330
4.045
4.525
15,255
115.050
94,400
635,950
13.431
280
2,500
114.127
181,150
88,202
6.602
1,200
1,252
13,625
5.150
500
93.900
174,800
86,450
57,315
41,035
56,075
6,365
3,285
12,250
48,800
28,150
13.400
7,150
9.600
30.425
226.250
48.800
66,375
203.400
33.000
52,000
8,900
13,400
2,650
9,900
400
8,800
4,050
2,000
3,425
942,155
379.585
313,430
750
1,860
1.650
12,300
10,050
9,950
69,450
92,875
98,425
Nil.
1,000
20.330
33.390
36,780
20,740
320.905
189,210
131,110
505,360
47,810
37,225
4,654,479
2.372,512
3,952,878
4.401.908
2,123 742
3,709,925
At the annua^l meeting of the Western Ontario Weather
Insurance Co., held in Woodstock on February 10, H. Hems-
worth, of Listowel, was elected president. There was a large
attendance of officers and policyholders from all parts of
Western Ontario, and the reports read were most satisfactory.
The loss claims paid by the compa>ny showed a total of over
$125,000. The company paid out for the storm of November
2, 1919, which came under the past year's business, over
$100,000.
REMUNERATION FOR BANK SERVICES
"In spite of the cost of everything else having risen
there is no increase in the charges made by banks to their
customers, notwithstanding the very great additional expense
which has been imposed on the banks by reason of the high
cost of evei'ything," sa.id A. E. Phipps, of the Imperial Bank,
at a gathering of their managers recently. "It is tnae that
there has been some effort recently to i-aise rates one-half
of one per cent, here and there owing to tightness of money,
but it cannot be said there has been any real increase in
interest rates, which are ruling f&r below those in the United
States. Apart from increased turnover, the only source from
which we can look for increased earnings is minor profits.
This question is one that has always interested the executive
officers of the banks, but in many instances has not been of
much interest to branch managers, and a cursory examina-
tion of some of our branches during the early part of last
year indicated that in many instances a great deal of work
which should properly have been paid for was being done
for nothing. The excuse is usually 'competition.' Hea-d office
officials know the managers who can be depended upon to
obtain proper rates of exchange and satisfactory remunera-
tion for services rendered, and, unfortunately, others who
never seem to be able to do so but meet arguments with the
excuse that 'the customers will not pay,' and that 'the bank
across the street vvall do it for nothing.' The question of
collecting minor profits depends in the majority of cases on
the character of the manager."
ACTION AGAINST BANKS FAILS
In the Superior Court, Montreal, on March 3, Justice
Maclennan held that no act of the Royal Bank of Canada or
the Hochelaga Bank was the proximate cause of any loss
to the estate of the late Isaie Hurtubise, jr. The action was
one in which Joseph Hurtubise and others in their quality of
testamentarj' executors of the late Isaie Hurtubise, jr.,
claimed from the Royal Bank of Canada the sum of $32,061.
This amount was the price of a property sold to the Sun
Life Assurance Company by the estate ($25,750) in March,
1914, plus $6,361 interest.
The price was paid by a cheque of the Sun Life Assur-
ance Company of Canada, dated Montreal, March 12, 1914,
payable to the order of the estate Isaie Hurtubise, jr., drawn
on the Royal Bank of Canada, Montreal, and on the following
day — plaintiffs said, without their knowledge — the cheque
was deposited in the Hochelaga Bank, endorsed, "Estate Isaie
Hurtubise, jr., Maurice Loranger, Proc, Maurice Loranger,
Adm." Plaintiffs in their action alleged that the endorsation
was unauthorized, and sought, therefore, to hold the Royal
Bank liable for the amount. The Royal Bank, in defence,
proceeded by action-in-warranty against the Hochelaga Bank,
pleading that the cheque was presented to it through the
clearing house by the Hochelaga Bank, endorsed by the latter,
and, relying on this endorsement, the cheque was paid through
the clearing house in accordance with the usual banking
custom. The Hochelaga Bank defended the principal action,
and its pleadings were maintained as set out in the court's
judgment, which declared that plaintiffs had not established
the material allegations of their declaration.
March 18, 1921
THE MONETARY TIMES
You Can Depend On Them
THE best lubricants and the least expensive
— quality for quality — bear the Imperial
brand.
From the list at the right you can choose a
particular grade of oil for every requirement
of your mill or factory. All grades are of
uniform high quality. Ample supplies are
readily available at any time.
The regular use of Imperial Lubricants
increases the production capacity of mach-
inery, prolongs the life of machinery and
saves money in lubricating costs. Hundreds
of Dominion industries depend altogether
upon Imperial Lubricants for profit-making
plant operation.
Lubrication Insurance
We acknowledge your signed agreement
covering our requirements to August, 1921.
It brings with it the feeling of security that
your contracts always give.
— Chicoutimi Pulp Company.
Money Saved — Requirements Met
We saved a great deal of money last year
by following your selection of lubricating oils
for machines where the requirements were
unusually severe. We appreciate this service —
also your promptness in delivering emergency
orders. — Port Arthur Shipbuilding Co., Ltd.
Imperial Lubrication Engineers will gladly
prescribe for your plant. W rite to 50 Church
St., Toronto.
Lubricants
For Manufacturing,
Mining and Milling
CYLINDER OILS
Imperial Cyllndtr Oil
Imperial Capitol Cylinder Oil
Imperial Beaver Cylinder OH
Imperial 20th Century Cyllnde
Imper
Imper
ENGINE OILS
I Solar Red On
ntic Red Oci
or Red Oil
Imperial Bayonne Engine
Imperial Renown Oil
Imperial Gas Engine Oil
Imperial Ario Compressor
J^^^JIJ) Chicouiimi Pu/p Company
24
THE MONETARY TIMES
Volume 66
ANOTHER SURPLUS FOR DOMINION IN FEBRUARY
POST-OFFICE SAVINGS BANKS
Revenue was Lower, but Disbursements Showed Larger Con-
traction— Gross Debt Decreased, While Net Debt
was Higher by Four Millions
A REDUCTION of more than $4,000,000 is shown in ordi-
nary revenue of the Dominion government for Feb-
ruary, but, as ordinary expenditure was also lower by about
$8,500,000, a more substantial sui-plus is shown for the month.
As compared with February a year ago, the figures also
reveal moi'e favorable conditions. Revenue in 1920 was some-
what higher than for the same period this year, but a large
contraction in disbursements is shown.
With but one month more t« go, the government stands
to finish its fiscal year with a handsome surplus. For the
eleven months revenue exceeded expenditure by about $85,-
500,000, while in the previous period the margin was in favor
of receipts by only $18,000,000. The following table gives
the details of receipts and expenditures, together with an
account of the public debt: —
PUBLIC DEBT
Liabilities
Funded Debt—
Payable in Canada
do in London
■do in New York
Temporary Loans
Bank Circulation Redemption Fund '.
Dominion Notes
Savings Banks —
Post Office Savings Banks
Dominion Government Savings Banks
Trust Funds
Province Accounts
Miscellaneous and Banking Accounts —
Total Gross Debt.
Investments —
Sinking Funds
1920 1921
$398,035,974 08 $477,495,061 68
243,430.248 63 337,781 ,679 68
157.605,725 45 139,713.382 00
Province Accounts.
Misc. & Bkg. Accts.
Less Non-acti-ve.
757,542.8
: Assets . . - .
;31 560.155,102 73
2045,715,441 91
336.001,469 72
135.873.000 00
205.757.999 9S
5.9.59.083 15
306.497,464 79
30.771.344 27
10.819,372 07
12,839,325 64
11,920,481 20
46.944.007 14
3149.098,989 87
2080.104,898 57
336,001,469 72
135,873.000 00
90,837.000 00
6.311.522 76
283,635.244 75
3034,144.024 45
157.605.725 45 ;
2.296,327 90
757.542.886 31
937.313.682 99
139,713.382 00
2.296,327 90
560.155,102 73
727.130.867 60
19.407.738 36
Rev. and E.ip. on Acc.
OF Consolidated Fd.
Revenue —
Customs
Excise
Post Office
Pbc. Wks.Rys.&Cs.
War Tax Revenue-
Inland Revenue.
Business Profit Tax
Income Tax
Other War Tax Rev.
Other Revenue Accts
Total..
13,891.671 76
3.517,590 25
1 ,800.000 00
330.138 86
1,580.632
5.306.664 88
2.737.007 71
523.942 07
9.813.744 23
39,501.392 28
Expenditure—
Int. on Public Debt-.
Agriculture
Pensions
Pub. Wks. Con. Fund
Post Office
Dom. Lands & Parks
Soldiers Ld. Settlm't
■ Civil Re-Estab.
Other Expend. Accts.
Total
147,112.840 99
37,939,480 57
18,500.000 00
38.642,006 99
13,891,062 62
36,319,126 96
9,982,140 35
1,534.352 85
23,811,292 23
327,732,303 56
475,442 77
614.5:i6 01
4,315,711
510.302 51
3.0S2.62I 64
193.059 10
-1.076,453 06
9,783,812 38
20.410.457 26
9,955.564 01
2,812,674 02
3,498.409 74
-1,316.475 48
5,545,352 54
5,987,272 13
6,267,915 42
611.248 26
1.718,652 22
* cts.
152.794,645 18
33,725,962 35
21,998,409 74
37,119.452 14
.70.651,401 36
35.696,067 58
32,666.940 51
1,801.039 66
32.462,261 63
35,080,61286 418,916,180 15
93,490,150 26
4,001,983 06
20.911,548 48 I
6.399.183 461
16.773 846 62
2.692.799 74
34.021,115 67
35.697,830 83
95.673.113 13
38.309.380 41 309.661,57125
4,777.8,53 47
539.524 89
3,351,727 19
948,995 92
1,749,291 05
48,162 45
141„530 86
510.981,95
7.720.187 26
124.820.093 64
4,322,277 09
32.267,567 50
8,098,664 82
18,014.338 44
3.361.210 05
1.868.002 47
28.496.299 83
112 349.0.59 29
19.788.255 04! 333.597.513 13
Public Works, includ'g
Railways and Canals
Railway Subsidies
8.364.836 37
4,627,728 71
347.591,748 051
642,359 701 9,622,870 34
2,576,105 00 28,872,861 65
3,218,464 70 37,965,731 !
Withdrawals from the post-office savings banks in De-
cember last, while exceeding deposits by a substantial suni,
were about $64,500 below the figure for the previous month.
Deposits were about $84,000 lower than in November, but
more than $279,000 was transferred from the Dominion Gov-
ernment savings banks, so that the balance at the credit of
depositors was only $22,000 below the previous month. The
following are the December details: —
DECEMBER
•om Dominion Gov-
jvings Bank during
month:— Lunenburg, N.S.
Principal
Interest accrued
from 1st April to
date of transfer
Deposits transferred from the
Post Office Savings Bank of the
United Kingdom to the Post
Office Savings Bank of Canada
Interest accrued on deposit
accounts and made princ
31st March 1920, Estimate .
nterest allowed to Depositors
on accounts closed during
month...
Balance at the credit
of Depositors' ac-
counts on 31st
Dec, 1920
ADVERTISING SAFETY DEPOSIT BOXES
Safety deposit boxes in small branches of banks are one
of the newer developments in banking, which is pa-rtly due
to the wide distribution of securities. How to bring these
to the attention of the public is one of the manager's prob-
lems. B. E. Young, manager of the Yonge and Ann Streets
branch, Toronto, of the Imperial Bank, said recently: "I find
lettering on the windows the best foiTn of advertising for
the safety deposit department. The initial expense for this
is the only expense and the advertisement is permanent.
It speaks day and night to all passei's-by." Mr. Young has
in a short time established a large clientele in this department.
IMMIGRATION STILL INCREASES
Immigration to Canada, from April, 1920, to January,
1921, with the ch&nges from the coi-responding months of
1919-20, was as follows:—
From
Other
'c
British.
U.S.A.
counti-ies.
Totals.
of inc
April
6,229
6,324
734
13,287
18
May ....
12,414
5,35.3
1,844
19,611
92
June ....
9,844
4,720
1,780
16,344
109
July ....
10,472
4,301
1,888
16,661
50
August
7,404
5,838
2,510
15,752
4
September
6,405
4,227
2,718
13,350
October . .
7,602
3,945
3,305
14,852
3
November
4,695
3.262
2,890
10,847
34
December
1,968
2,110
3,105
7,183
14
January
987
1,751
1,515
4,253
1
Totals 68,020 41,831 22,289 132,140
March 18. 1921
THE MONETARY TIMES
25
WHOLESALE PRICES FELL L\ FEBRUARY
The index number of wholesale prices, constructed by
Professor H. Michell, of McMaster University, Toronto, based
on forty commodities, twenty foodstuffs and twenty manu-
facturers goods, stood at 197.8 for the month of February,
showing a decline of 6.4 per cent, from the previous figure,
of 212.6 for the month of Januarj', and a decline of 34.3 per
cent, from the peak of 298.3, reached in May, 1920.
Among the foodstuffs, declines were registered in flour,
beef, lard, whitefish, rice, potatoes and eggs, while small
advances were shown in cheese and granulated sugar. Among
manufactured goods, declines were registered in wool, cotton,
hides, leather, silver, lead, tin, zinc, prepared paints, coal oil,
oak, maple and newsprint. There were no advances in this
section.
It is to be noted that the great staples of iron, steel and
oil are still very high, having declined very little, while lead,
copper and tin have fallen considerably. Rubber and silver
are now below the level of the average price of the decade,
1900-1909, while cotton is only one cent a pound above that
price.
CANADIAN GOODS AND THE WORLD MARKET
The above is the title of a 57-page booklet just issued
by the Canadian Bank of Commerce, giving a- brief economic
description of each province, and some statistics of produc-
tion and trade. A preface says: —
"This booklet has been prepared as a statement of the
industrial situation in Canada from the standpoint of pro-
duction and trade, for the information of prospective im-
porters of Canadian goods and of capitalists in other coun-
tries seeking a- profitable field for investment.
"It is felt that Canada, as a whole, needs little further
advertisement, and that the greater the extent of the country
to which attention is directed, the less distinct is the impres-
sion conveyed. In order, therefore, to supply what it believes
to be a real need, the Canadian Bank of Commerce offers to
the public interested a brief summary of the situation in each
of the Canadian provinces, showing the extent of the natural
resources, the manufactured products and the relative impor-
tance of the native industries in each, and suggesting lines
upon which the further development of resources and the
location of new plants may be expected to follow.
"In this connection, the bank has endeavoured to avoid
iuiy unfair discrimination among the provinces or industries
mentioned. It has &lso taken care to obtain the latest and
most reliable information and statistics on the subject, al-
though it cannot assume responsibility for the correctness of
the information obtained. The inadequacy of any pamphlet,
limited to a readable length, to cover the whole situation is
of course admitted. The purpose of the present booklet is
to throw light from s> slightly different angle upon the re-
sources and indu.strial activities of Canada."
Fire Insurance Con>i>any. Limited, of PARIS. FRANCE
Capit.il fully subscribed. m% paid up S ■-' (XW.OOII IHI
Kire and Central Reserve Funds S.270.ll«) IHI
Available Balance from Profit and Loss Account S5.89I.IX)
Net premiums in 1919 8.648.669 00
Total Losses paid to 31st December. 1919 lU.liOO.OOO.OO
Canadian Branch. 17 St .John Street. .Montreal: Manager for Can.^da,
Maurice Fkrrakh, Toronto Offices. J. H. Ewart. Chief Agent. 18 Wellington
Street East ; R. B. Rick & Sons. Toronto Agents. 66 Victoria Street.
giiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiniiiiiiiiiiiiiiiiiiuiiiiuiiiiiiiiiiiiiiiiiiiiiiiiii
I THE I
I COMMERCIAL LIFE I
I ASSURANCE COMPANY I
I OF CANADA |
I Head Office - - Edmonton |
Extracts from Annual Report for
Year Ending December 31, 1920
Balance Sheet as at December 31, 1920
ASSETS.
City of Edmonton Debentures $ 54,065.75
Dominion of Canada War Bonds 19,682.29
Dominion of Canada Savings Certificates 43.34
School District Debentures 450.00
Mortgages on Real Estate 12,891.18
Loans to Policyholders 857.70
Loans to Policyholders under A.N.F.
Provision 293.23
Accounts Receivable 480.00
Cash in Banks and at Head Office 7,243.07
Total Ledger Assets % 96,006.56
Furniture Less Depreciation 2,012.61
Outstanding and Deferred Premiums on
Policies in Force 7,378.09
Interest Due and Accrued 4,302.55
$109,699.81
LIABILITIES.
Net Reserve on Policies in Force $ 29,763.18
Due for Re-insurance 47.44
Outstanding Expenses 474.26
$ 30,284.88
Investment Reserve 2,000.00
$ 32,284.88
Surplus to Policyholders 77,414.93
$109,699.81
SALIENT POINTS TAKEN FROM REPORT.
Business in Force Increased 81 Per Cent.
Premium Income Increased 140 Per Cent.
Total Income Increased 56 Per Cent.
Reserves Increased 67 Per Cent.
Assets Increased 24 Per Cent.
Interest Earnings Increased 108 Per Cent.
Managing Director and Secretary,
JOHN \V. GLENWRIGHT.
488
26
THE MONETARY TIMES
Volume 60.
Recent Mineral Developments in Alberta
Province Lacks Those Deep-Seated Rocks so Productive of
Minerals in Ontario — Some Mineral Prospects in North, How-
ever— Petroleum Discoveries of the Past Year — Bituminous Sands
By JOHN A. ALLAN
Professor of Geology, University of Alberta
ALBERTA is so situated geologically that metallic
minerals can never be expected to play a foremost role
in the industrial development of this province. Metallic
minerals are as a rule associated with deep seated or igne-
ous rocks, or with rocks which have been affected by igneous
intrusions and extrusions, or in regions in which the rocks
have been altered by mountain-building or other diastrophic
movements.
The valuable deposits at Sudbury, Cobalt, Porcupine,
Lake Superior, Flin Flon, or Coppermine River are formed
in the rocks, which belong to the earliest eras in geological
liistory, collectively known as Pre-Cambrian. These rocks
traverse only the extreme north-eastern corner of Alberta
north of Lake Athabaska, but underlie all of that largely
unexplored territory east of the Mackenzie River valley.
The mineral possibilities in that expansive territory tribu-
tary to Alberta are great but as yet unknown. Iron oc-
curs north of Lake Athabaska; copper sulphides occur be-
tween Great Slave and Great Bear lakes; lead and zinc
sulphides and gold in the Great Slave district and native
copper on the Coppermine River on the Arctic slope. Dur-
ing the past two summers hematite (iron oxide) deposits
have been examined in a general way on both sides of the
lower Mackenzie River. A high grade of hydrated iron oxide
is known to lie north of the upper stretches of the Peace
River, while many optimistic reports are brought out of the
north regarding mineral deposits along the upper stretches
of the Liard River. None of these deposits are being de-
veloped, but all lie within the future mineral possibilities
of the hinterland.
On the western side of Alberta within the Rocky moun-
tains and in the inner foothills are several occurrences of
minerals, the value of which has not yet been determined.
In the Crows Nest region are magnetite shales, high in
titanium dioxide which may be proven to be commercially
valuable. Phosphatic rocks are widely distributed from the
49th parallel to the Liard River within the front ranges of
the Rocky Mountains, but no beds have yet been found rich
enough to be mined. A small copper sulphide deposit has
been mined in the Bow valley west of Banff, and plans are
anticipated for further development during next summer.
A talc deposit is being prospected on the interprovincial
boundary at Vermilion Pass west of Banff. The quality of
this talc is excellent. Mica does not occur in Alberta but a
high grade of muscovite has been investigated on the Finlay,
the northwestern branch of the Peace River. Plans are
now being made to develop this deposit next season.
Coal
The mineral resources of first order importance in
Alberta include coal, natural gas, petroleum, bituminous
sands, salt, gypsum, and clays. The coal resources of Alberta
have been studied in greatest detail, and are thei-efore fairly
well defined. It is estimated that the province of Alberta
contains about fifteen per cent, of the coal reserves of the
world, and eighty-seven per cent, of the coal reserves of
Canada. Approximately ninety-six per cent, of the coal
reserves of Canada lie west of the Great Lakes. Only about
sixty million tons of coal have yet been produced. Coal
was first reported from the Drumheller district in 1789 and
coal was used in Edmonton in 1841. Coal mining operations
have been carried on continuously since 1881; in that year
1,500 tons were produced chiefly from the Lethbridge basin.
The output has increased annually and in the year 1920
exceeded seven million tons.
All grades of coal are found in Alberta, from moderate
grades of lignite to high grades boi-dernng on anthracite.
This fact is too frequently overlooked when Alberta coal
is discussed. The two most important factors in consider-
ing coal deposits are age and pressure. Both factors have
to be considered when Alberta coals are referred to. The
coal seams in Alberta occur in three geological ages, so
that in general the older coals are of the higher grade on
account of their age, but on the other hand, the mountain-
building movements which uplifted the Rocky mountains on
the western side of Alberta have exerted a greater pressure
on the coal seams to the west, so that the grade of any coal
seam increases towards the west. There are several coal
basins in Alberta widely distributed, all of which are pro-
ducing coal of different gi-ades. There are basins of higher
grade coals within the front ranges of the mountains
which are not yet developed. These include those basins
at the head of Highwood and Sheep rivers in southern
Alberta, and the Smoky River district in northern Alberta.
The provincial government under the direction of the
Hon. J. L. Cote has instituted at the University of Alberta
in Edmonton, a research department in which the better
preparation of coal for market, the storage and the utiliza-
tion of the lower grades of coal ai'e being investigated for
the purpose of increasing the efficiency as well as the
markets for the Alberta coal.
Petroleum
The attention of the oil producing world has for the
past few months especially been turned towards Alberta.
Although oil and gas seepages were common, and a small
quantity of oil was obtained in a well drilled in south-
western Alberta, south of the Crows Nest about 1898, little
interest was taken in the oil possibilities of this province
until 1914. In May of that year a light oil of gasoline
grade was struck in the Turner Valley west of Okotoks,
35 miles southwest of Calgary. This discovery precipitated
a boom, in which about five hundred companies were formed.
Less than two dozen of these companies ever began drilling
operations before the boom "broke" in August when the war
broke out. Most of the oil companies soon disappeared, and
in 1919 less than a dozen were active.' It was not until last
year that a systematic field search was begun to find the
most likely areas to contain petroleum. These field investiga-
tions were carried on by real geologists under the direc-
tion of large petroleum operators and corporations.
There is a tendency at such a time as this, when
geological information is in great demand, for a type of man
to appear who is ready to assume the role of a geologist
no matter how disqualified he may be to give such informa-
tion. He is present in Alberta to-day as he was during the
oil excitement of 1914. A word of warning is necessary to
the conscientious investor that he should be careful not to
accept geological information that is given by any other
than a qualified geologist.
The problem of working out the most suitable geological
structure in Alberta and the Mackenzie Basin is extremely
difficult on account of the scarcity of outcrops and the thick
veneer of glacial debris and expensive muskegs. It there-
fore, requires the attention of the best trained geologist to
woi-k out the correct structure and to give the most reliable
information on petroleum prospects. Development work
March 18. 1921
THE MONETARY TIMES
Another Bank Robbeiy Prevented
Hundreds of Banks testify to un-
-successful attempts ai ^ur^Iary
when their Vaults are equipped with
Dillon Vault Lock
BurOlar Proor
Ymilr Lock
Over 2500 banks are now equipped with Dillon Equipment. Every case
where it has been put to the test, it has foiled the "would be'* robber.
Write for complete information :
Arthur Gravelle & Sons, 212 Plaza Bldg., Ottawa, Ont,
Sole Canadian Distributors for
DILLON LOCK WORKS, FORT DODGE. IOWA.
ALSO MAKERS OF ELECTHICAl. PROTECTIVS
KQUIPMEffT FOR EVERY BANK NEED.
lllllllllllilllllllllilllllllllllllililllillllilllli
489 ^
llllllllllllllllllllllin
THE MONETARY TIMES
Volume 66.
must of necessity proceed more slowly than it would if the
structure could be readily determined. A word of apprecia-
tion is due to the Federal Geological Survey for the gen-
eral information which that body has given to the public
through early reports on the district that is now being more
thoroughly investigated at the present time.
Systematic field work has been carried on during the
past summer by about a dozen geological parties, but much
of the information obtained can not be made public as the
work was carried on for private companies. About twenty
drilling outfits were at work a greater part of the year.
These are distributed from the 49th parallel to Fort Nor-
man which lies on latitude 65 degrees. Most of the drilling
operations was carried on by the Imperial Oil Co.
Fort Norman Discovery
It was in the well drilled by this company forty miles
below Fort Norman that oil was struck about August of
this year. This is the first discovery of oil in quantity of
commercial quality north of Calgary. The oil from this well
is of a very good quality and has a gravity of about 37
degrees Beaume which represents about 0.84 specific gi-avity.
The color of the oil is a dark olive green and according to
tests which have been made on it, there is no asphalt base
present. The quantity of oil at the well was not measured,
but the flow was reported to be intermittent with a pressure
sufficient to carry it over the top of the derrick.
The locality of this well lies about 900 miles northwest
of Edmonton and about 1,200 miles by the regular route
travelled. This discovery of oil is important in that it
proves there is a reservoir of undefined extent in that re-
gion, but for some years to come it can not be regarded as a
commercial product on account of transportation difficulties.
It is however, hoped that this discovery will encourage
earnest, energetic and sane development of the many other
districts more accessible to transportation which are con-
sidered favorable for the production of petroleum.
The geological structure of this region is such that up-
wards of 300,000 square miles are underlain by formations
suitable for the accumulation of petroleum in Alberta, the
Mackenzie Basin, and parts of Saskatchewan and Manitoba.
So far as the geological studies have been carried in this
area there seems to be several localities where conditions
are more favorable than in others for the accumulation of
petroleum, but these can be only proven up by drilling opera-
tions. At the present time wells are being drilled in sev-
eral of these districts. The fact is generally overlooked that
the Okotoks field, southwest of Calgary is the only produc-
ing field, and that during the past year about 13,000 barrels
of oil were produced. There is situated here a refinery and
an absorption plant which extracts gasoline from the
natural gas.
The problem has not yet been solved and it is yet too
eai'ly to be over-optimistic and to claim that gTeat com-
mercial fields of oil have been discovered in this part of
Canada. However, indications are becoming more favorable
as the months go by, and the probabilities are that develop-
ment during 1920 will result in determining a definite oil
reserve.
The problem of proving up any district in Alberta is
a slow and expensive one, and one that can be carried on
only by large corporations who are willing to spend money
m any district where there is a reasonable chance of results.
Much adverse criticism has appeared recently in the press
against such a company as the Imperial Oil, but this criticism
when traced to its source, has arisen from persons with
biased opinions, or with narrow views who do not under-
stand the unfavorable conditions under which development
work must be caiTied on for petroleum in Alberta and the
northland. We are anxious to know what possibilities there
are in the oil resources of this pai't of the Dominion, but
it would be a very, very long time before these resources
would be detennined if the development is left to the direc-
tion of the speculating oil companies or to the biased ob-
jectors. Encouragement must be given to the large com-
panies who are willing to invest money in drilling, and dis-
couragement to the speculator. At the present time the
chances are against the small companies with small hold-
ings, but in favor of the large companies with large hold-
ings, widely distributed over the whole territory.
Preparations are now being made by the Imperial Oil
Co. to establish an aerial service next summer from Peace
River down to Great Slave Lake and Fort Norman. This
will enable the company to get their men and instruments
into the field in a short time and will insure a long drilling
season at both Fort Norman and at Windy Point on the
north shore of Great Slave Lake where the second drilling
outfit of the same company was erected late last summer.
Bituminous Sands
Interest in the bituminous sand deposits of Alberta,
which are exposed along the banks of the Athabaska River
below Fort McMurray, has increased rapidly during the
past few months. Samples are being tested in many labora-
tories in the United States and Canada from coast to coast
and also in England and even in the Hawaiian islands.
It is known that the bituminous sand formation under-
lies several thousand square miles, although only a small
part is accessible, that the formation varies from fifty to
two hundred feet in thickness, that the bitumen content
varies from twelve to twenty-two per cent, and that tests
on these sands have produced from twenty to thirty-five
gallons of crude oil per ton. The real problem in the com-
mercializing of this great resource of oil is to find a process
which will extract the bitumen from the saturated sands on
an economic scale. Laboratory processes are known, but to
date none of these have been proven to be commercially
economical. ItJ is, however, hopeful that a satisfactory
process will be found from some of the numerous tests which
are being conducted. When such a process is found a very
large reserve of crude oil will be available.
Rock Salt
Believing that rock salt should occur in northern
.\iberta, the provincial government sunk a well at Fort
McMurray. The test was successful and a bed of rock salt
was encountered. The development of this resource in the
near future is assured. Beds of Gypsum rock are associated
with the rock salt.
The development of the mineral resoui'ces of Alberta,
excepting coal, is still in its infancy. Realizing the great
future that is almost assured this province, the provincial
government about a year ago, created a research depart-
ment at the University of Albei-ta in which many problems
related to coal, bituminous sand and other natural resources
are being investigated.
INCOME TAX DECISION
The first Division Court in Ottawa, on an appeal by the
income tax authorities, has reversed the judgment of a
magistrate at Sault Ste. Marie and pronounced in opposition
to the ruling of Judge Gunn, of Ottawa, who held that the
Income War Tax Act gave no jurisdiction to magistrates. In '
the case in question the magistrate at Sault Ste. Marie dis-
missed a charge of falsifying income tax papers laid against
a physician named Sinclair, although the physician made
returns showing his net taxable income to be $1,480, which
would leave him tax free, when it was shown that his net
taxable income really was $16,685. The magistrate gave it
as his opinion that the physician had not intended to deceive
the department.
In reversing the judgment on appeal, Judge Hall says:
"Can any reasonable man conclude that it was an accident
that caused the respondent to make a return showing a gross
income of $6,392, which, after deductions, left him tax free,
while in fact his taxable net income was $16,685.14, upon
which he actually paid a tax of $1,525.41?" Judge Hall fined
the respondent $2,500.
March 18, 1921 THEMONETARYTIMES 29
iiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
I MOUNT ROYAL ASSURANCE I
I ' COMPANY ■
Head Office, 1 7 St. John Street, Montreal
HON. H. B. RAINVILLE. President HON. SENATOR]. M. WILSON, Vke-Presidenl
)IIUIIIM1IIIIIUUII1IIIIIIIIIIIIIU!II
EIGHTEENTH ANNUAL REPORT
for the Fiscal Year Ending December 31st, 1920.
CAPITAL AND RESERVES
Authorized $1,000,000.00
Subscribed and fully paid up '. 250.000.00
Reserve and surplus 1,009,179.57
Total Funds 1,613,963.09
BUSINESS STATEMENT FOR YEAR ENDING 31st, DECEMBER, 1920
Revenue Account
Amount of Reserve for unexpired
liability at the end of year 1919. . $ .■?96,777.94
Premiums $1,391,791.76
Less^Rebates and Can-
cellations 214,404.78
Interest and Dividends
1,177,386.98
84,832.73
SI .658.997.65
E.xpenditure
Claims paid and outstanding after de-
duction of reinsurance $ 343,356.26
Reinsurance Premiums 435,707.35
Commission and Expenses of Manage-
ment 225,773.27
Office Furniture and Plans 4,063.69
Government, Municipal and War Taxes 34,305.85
Reserve Fund (Legal Standard) 451,179.33
Carried to Profit -and Loss
Account $219,013.29
Less added to Reserve.... 54,401.39
Sl.658,997.65
BALANCE SHEET AS OF DECEMBER'S 1st, 1920
Assets
Cash in Banks
Cash in Office
Agents' Balances
Investments: —
Victory Bonds $500,000.00
\\\ other Bonds, Deben-
tures and other inter-
est bearing securities
(Market Value) 825,727.00
Interest accrued
Sundry Debtors ....
Plate Glass Salvage
Furniture and Plans
133
8,
1.30,
1,325
8,
4,
3,
,208.84
575.53
635.46
,727.00
,058.73
,462.33
294.20
1.00
Liabilities
Capital paid up $ 250,000.00
Reserve Fund 451,179.33
Losses under adjustment 36,023.00
Reserve Deposit of Reinsurance Com-
panies 217,304.70
Balance due to Reinsurance Companies 9,943.08
Reserve for War and other Taxes .... 20,000.00
Balance at credit of Profit
and Loss Account . . . $648,000.24
Less Decrease in Market
Value of Bonds, etc.. . 18,487.26
Sl.613.963.09
S1.61 3,963.09
HiiiniiiminriiiiiiiiiiiiniiniiiiiiMi
SYNOPSIS OF COMPANY'S OPERATIONS AND FINANCIAL POSITION
YEAR
1903 .
1920 . .
Gross Income
$ 40,068.68
1.262.219.71
Investments
.? 33.062.50
1.325.727.00
Reserve
.? 12.500.00
451.1 79..33
.Surplus
S 3,264.85
648.000.24
Excess of Income
over Expenditure
S 15.764.85
219.013.29
P. J. PERRIN. General Manager.
n^MiiiiiiiiiiiHiiiiiiniiiiiiiiiiiiiiHiiiiiiiiii iiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiniiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiin^^ mil iiiiiii ii iiiiiiiiiiiiniiiimiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiii iiiiiii iiiiiiiiiiiiiiimiiiiiiimiiiiiiniiiiiiiiiiiiiiiiiiil
THE MONETARY TIMES
Volume 66.
DIVIDEND NOTICES
IRiorbon Company Ximiteb
FIRST CUMULATIVE PREFERENCE STOCK
DIVIDEND No. 3
Notice is hereby given that a quarterly dividend of 2%
(being at the rate of 8 per cent, per annum), has been de-
clared on the First Cumulative Preference Stock of this
Company for the quarter ending March 31st, 1921, payable
April 1st, 1921, to Shareholders of record at the close of
business March 19th, 1921.
By Order of the Board.
F. B. WHITTET, Secretary-Treasurer.
Montreal. March 3rd, 1921. 473
IRioibon Company Ximiteb
CUMULATIVE CONVERTIBLE PREFERENCE STOCK
DIVIDEND No. 3
Notice is hereby given that a quarterly dividend of
1%% (being at the rate of 1% per annum), has been de-
clared on the Cumulative Convertible Preference Stock of
this Company for the quarter ending March 31st, 1921, pay-
able April 1st, 1921, to shareholders of record at the close
of business March 19th, 1921.
By Order of the Board.
F. B. WHITTET, Secretary-Treasurer.
Montreal, March 3rd, 1921. 474
TTbe IRiorbon IPulp S, paper
Company, Ximiteb
PREFERRED STOCK DIVIDEND No. 35
Notice is hereby given that a dividend of 1%% (being
at the rate of 7% per annum), on the Preferred Stock of
this Company has been declared payable March 31st, 1921,
to shareholders of record at the close of business March
22nd, 1921.
By Order of the Board.
F. B. WHITTET,
Secretary-Treasurer.
Montreal, March 3rd, 1921. " 472
PENMANS, LIMITED
DIVIDEND NOTICE
Notice is hereby given that the following Dividends
liave been declared this day for the quarter ending 30th
April, 1921.
On the Preferred Stock, one and one-half per cent.
(1%%) payable on the 2nd day of May to Shareholders
of record of the 21st day of April, 1921.
On the Common Stock, two per cent. (2%). payable on
the 16th day of May to Shareholders of record of the 5th
day of May, 1921.
By Order of the Board.
THE CANADIAN CROCKER-WHEELER CO.. LIMITED
DIVIDEND NOTICE
The Directors of the Canadian Crocker-Wheeler Com-
pany, Limited, have declared a One and Three-Quarters per
cent. (1%%) dividend on the preferred stock of the Com-
pany for the three months ending March 31st, 1921, to share-
holders of record March 21st, 1921. Also a dividend of
One and Three-Quarters per cent. (1%%) on the common
stock of the Company for the three months ending March
31st, to shareholders of record March 21st, 1921.
The Stock books will be closed from the 21st to the 31st
of March, both days inclusive.
Checks will be mailed to shareholders on March 31st,
1921.
By Order of the Board.
H. A. BURSON,
Secretary.
St. Catharines, Ont., March 5th, 1921. 476
DOMINION TEXTILE COMPANY, LIMITED
NOTICE OF DIVIDEND
A dividend of two and one-half per cent. (2y2%) on the
Common Stock of the Dominion Textile Company, Limited,
has been declared for the quarter ending 31st March, 1921,
payable April 1st to shareholders of record March 15th, 1921.
By Order of the Board.
JAS. H. WEBB,
Secretary-Treasurer.
Montreal, 28th February, 1921. 461
DOMINION TEXTILE COMPANY, LIMITED
NOTICE OF DIVIDEND
A dividend of one and three-quarter per cent (1%%)
on the Preferred Stock of the Dominion Textile Company,
Limited, has been declared for the quarter ending 31st March,
1921, payable April 15th to shareholders of record, March
31st. 1921.
By Order of the Board.
JAS. H. WEBB,
462 Secretary-Treasurer.
C. B ROBINSON,
Secretary-Treasurer.
Montreal, Que., March 7, 1921.
47.=;
PROVINCIAL PAPER MILLS, LIMITED
DIVIDEND NOTICE
Notice is hereby given that Dividends have been declared
by Provincial Paper Mills, Limited, as follows: —
Regular Quarterly Dividend 1%% on Preferred Stock.
Regular Quarterly Dividend IVs'T'r on Common Stock.
Special Dividend l*;^;- on Common Stock.
.A.11 payable on April 1st, 1921, to Shareholders of record
at close of business, March 15th, 1921.
(Signed) S. F. DUNCAN,
484 Secretary.
March 18, 1921
THE MONETARY TIMES
31
DIVIDEND NOTICES
DOMINION CANNERS, LIMITED
DIVIDEND NOTICE
PREFERRED STOCK
Notice is hereby given that the quarterly Dividend of
one and three-quarters per cent, has been declared on the
Prefei-red Stock of the Company.
The above Dividend is payable on April 1st next to
Shareholders of record at the close of business on March 19th
next.
By Order of the Board.
W. R. DRYNAN,
Secretary-Treasurer.
Hamilton, March 10th, 1921.
486
THE OGILVIE FLOUR MILLS COMPANY, LIMITED
DIVIDEND NOTICE
Notice is hereby given that a quarterly dividend of three
per cent, has been declared on the Common Stock of The
Ogrilvie Flour Mills Company, Limited, payable Friday, the
first day of April, 1921, to shareholders of record at the
close of business, Tuesday, the twenty-second day of March,
1921.
Bv Order of the Board.
G. A. MORRIS,
490 Secretary-Treasurer.
Large Chicago Bank
seeks the services of young
man with good training in
Foreign Exchange, capable
of managing and developing
its Foreign Department.
Please give fullest particu-
lars, which will be treated
in strict confidence.
Address Box 401, Monetary Times,
Toronto
DEBENTURES FOR SALE
RURAL MUNICIPALITY OF ELLICE
Tenders invited for one set of debentures for $49,000
payable in 30 years by annual equal instalments (principal
and interest) at 6 per cent, per annum. Debentures are for
building Good Roads and are Guaranteed by the Provincial
Government. Tenders to reach the undersigned not later
than 2 p.m. Saturday, March the 19th, A.D. 1921. Lowest
or any tender not necessarily accepted.
J. E. SELBY,
Sec.-treas. R.M. of Elliee.
St. Lazare, Man., March 3rd, 1921. 470
DEBENTURES FOR SALE
QUEBEC ROMAN CATHOLIC SCHOOL COMMISSIONERS
Public notice is hereby given that the Board of Roman
Catholic School Commissioners of the City of Quebec calls
for tenders for the sale of $700,000.00 of its debentures as
follows:-
$700,000.00, 6%, at ten years, or $700,000.00, 5V2%, at
thirty years.
Capital and interests payable at the Bank of Montreal
in Quebec, Montreal, Toronto or Hamilton, at the option of
the holders.
The City of Quebec will guarantee the capital and in-
terests of these debentures.
Everj- tender must be handed to the undersigned Secre-
tary-Treasurer before twelve o'clock noon on the 21st of
March.
Each tender must be accompanied by an accepted cheque
for $8,000.00, accepted by a Canadian bank.
ANTOINE C. TASCHEREAU,
Secretary-Treasurer of the Board of Roman Catholic School
Commissioners of the City of Quebec,
Parliament Buildings. Quebec, P.Q.
Quebec, March 9th, 1921. 482
Condensed Advertisements
FIRE INSURANCE SURVEYOR with Board of Under-
writers, desires position with company. 6% years under-
writer's experience, familiar with Eastern and Western
Schedules, also 5 years architectural experience. Good
references. Box 397, Mon.iary Times, Toronto.
SECRETARY-TREASURER, age 30, of large company
in British Columbia desires connection in similar capacity
with well-established company in Ontario, Hamilton pre-
ferred. First-class accountant, with excellent credentials; the
more responsibility to be assumed, the better. Prepared to
go east immediately for interview for any legitimate proposi-
tion. Apply by wire or letter to H. Anscomb, 1921 Govern-
ment Street, Victoria, B.C. 480
w
7E have 450 good businesses for sale
in
he ce
ntral
w
/ portion of Alberta
. Ev
erything fr
^m
aCe
leral
Store to a small C
onlect
onery
If you want a busines
s in Alberta you
want us.
WHYTE &
CO.,
LIMITED
Busin
■SB BtC
htr>
111
Pantases Buildir
18 -
Edmonton,
Alb
erta
32
THE MONETARY TIMES
Volume 66.
LIFE INSURANCE vs. BANKS
BRITISH COLUMBIA REPORTS REVENUE SURPLUS
Many of the Latter Have Failed in Canada, but Public Has
Not Lost Through Life Companies
Capital Account Shows Excess of Assets — Liability Under
Guarantees is Sixtv-Five Millions
"Tp HE jiopular impression that banks are emblematic of
A everything that is safe and sound is a common but
erroneous one," said W. J Bell, of the Sun Life Insurance
Co., Guelph, Ont., addressing the Life Underwriters' Asso-
ciation in that city a few days ago. "There are some banks
which are far from being either safe or sound, while, as for
the security which they afford depositors, the very best of
them cannot justly be compared with well-managed life in-
surance companies."
The speaker outlined the size and strength of the large
banks of the world. The strongest of all, he said, is the
National City Bank of New York, with a surplus of over
.$66,000,000. Yet right in New York there are three life
companies with larger surplus. Referring to Canada, Mr.
Bell said: —
Ninety-Three Banks Chartered
"In comparing life insurance conditions with the laws
governing Canadian banks, there are a few points to which
I particularly wish to draw your attention: At various times,
since the Bank of Montreal commenced operations a little
over a century ago, no less than ninety-three banks have
been chartered and have done business in Canada. There are
now but eighteen banks in the entire counti-y. What have
become of the other seventy-five? Perhaps it would be more
charitable not to ask. However, having brought up the ques-
tion, an answer must be furnished. A large percentage of
these seventy-five banks failed ignominiously — many of them
through the criminal actions of their trusted officers, while
a number of the others were only saved from insolvency by
amalgamation with remaining banks. I do not mean by this
to suggest that all the amalgamated banks were in an em-
barrassed financial position, although, undoubtedly, many of
them were. At any rate, as one of our insurance journals
once commented, 'Canada has, unfortunately, been distin-
guished for more bank failures than any other portion of
the King's dominions.'
Bank Act Amended
"In a letter published in the Toronto Globe some years
ago the then general manager of the Bank of Nova Scotia,
H. C. McLeod, in criticizing the deplorable showang at that
time being made by our banks, drew attention to the fact
that in the preceding twenty-six years no less than 25 per
cent, of our banks had failed outright. And I am glad to
say that that gentleman then joined in a campaign which I
personally had previously started, having for its object the
amending of our ultra-lenient banking laws. It would appear
egotistical were I to dwell on this point. Suffice it to say
that the most important amendment suggested — that per-
taining to an improved method of bank inspection — was
adopted by the government and became law, with markedly
beneficial results and an immediate reduction in the number
of bank failures. I am glad to say that since then the record
of our banks has greatly improved, and is at present a credit-
able one.
"Now, while there were so many bank failures, with
their attending losses, how much money did the public lose
through the insolvency of our life insurance companies ?
Not one red cent. It is hardly necessary, particularly in a
gathei-ing such as this, for me to dwell upon the fact that
never at any time has a policyholder lost a nickel through
the bankruptcy of a Canadian life insurance company. That
fact is common knowledge. I feel, therefore, that it may at
once be assumed that for stability and safety, our life in-
surance companies distinctly outrank our banks. The insti-
tution of life insurance is not on the defensive, nor have our
companies a reputation to build up — their record for solidity
and fair dealing is already fully established, and they are
able to point to it with pride."
BRITISH COLUMBIA'S public accounts for the year ended
March 31, 1920, presented to the legislature on Febru-
ary 11, show a surplus of $351,388. Total revenue amounts
to $13,861,602. Expenditures on current account were $11,-
568,002, and on capital account charged to income $1,942,268,
making a total capital expenditure charged to income of
$13,510,351. Current revenue is $3,876,212 more than the
estimates for the year, while the total expenditure was $195,-
388 more than the estimates. The total surplus of assets
over liabilities has increased $22,181,256 to $23,407,291.
Capital assets total $43,851,587, including payments from
the Dominion capitalized at $12,462,701, and buildings, roads,
bridges and other property valued at $21,347,503. Capital
liabilities, chiefly bonds, are $34,316,861, leaving an excess
of $9,534,726 of assets. There are also gruarantees by the
province, authorized to a total of $73,227,703, of which $65,-
407,227 are issued.
Current assets, comprising cash and advances, accounts
receivable, etc., total $13,158,521, and current liabilities in
the form of temporary loans, accounts payable, etc., are
$9,376,506, leaving a current surplus of $3,782,017.
These capital and current accounts do not include
amounts due from the Pacific Great Eastern Railway and
from the Bank of Vancouver, which are classed as "defer-
red assets," to a book value of $10,090,547.
NOVA SCOTIA'S FIRE LOSSES
Over one million dollars' worth of property was de-
stroyed by 205 fires in Nova Scotia dui'ing the three months
of October, November and December of 1920. This enormous
loss is for the first three months of the provincial year, and
is accounted for by J. A. Ruland, fire marshal of the pro-
vince, in a statement recently issued by him. And the large
percentage of these fires were due to preventable causes, or,
in other words, due to carelessness. The exact loss in figures
was $1,031,605. They were insured for $778,752, which is an
insurance loss from the underwriters' viewpoint; and not
covered by insurance, $301,843. Three-fourths of the entire
amount were accounted for by three fires covering a loss of
$750,342.
Among the causes, defective chimneys, flues and stove-
pipes are the most to blame, while fires of unknown origin
come next.
The following tables were submitted by the fire mar-
shal: In October there were 76 fires of a loss of $155,316,
insurance loss of $45,095, and not covered by insurance,
$110,221. In November there were 56 fires of a loss of $143,-
610, insurance loss of $130,765, and not insured $12,845. In
December there were 71 fires of a loss of $782,679, insurance
loss of $603,902, and not covered by insurance $178,777.
The 205 fires occurred in the following descriptions of
properties: Dwellings and apartments, 129; stables and
sheds, 14; farm barns, 5; mercantile stores, 12; manufac-
turing hazards, 10; churches, 2; lumber in yards, etc., 3;
garages, 2; automobiles, 4; halls, 3; office buildings, 4; col-
leges and schools, 3; hotels, 1; asylums, 1; miscellaneous, 11.
Total, 205.
The most frequent causes of fire during the period were:
Defective chimneys, flues and stovepipes, 38; carelessness
with matches, 24; carelessness with hot ashes, 4; open lights
and fires, 12; careless smoking, 9; sparks from combustion,
19; sparks on roof, 8; lightning, 8; unknown causes, 35.
The population of Greater Winnipeg is 282,818, according
to figures in the 1921 city directory. This is the greatest
gain recorded since 1914, and a jump of 10,350 over the
1920 figures.
March 18, 1921 THEMONETARY TIMES 33
iiiiiiiiiiiiiiiiiiyiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii
The Dominion Fire Insurance
Company
January 1st, 1921
iiiiMwuiHiiiiiiiiiinuiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiraiiiiiiiiiiiiaiiiiiiiiiiiiniiiiiiiiiiiiiiiiniiiiiiiiiiiininniiiiiiiiiiiiiiiiiiiniiniu
ASSETS
GOVBIRNMENT BONDS: MARKET VaLI E
Canada Victory Loan, 1934 . $250,000.00
Canada Victory Loan, 1933 . . . 160,000.00
Canada Victory Loan, 1937 . . . 115,000.00
Province of Alberta 50,000.00
Province of British Columbia 50,000.00
Province of Saskatchewan . . . 48,666.66
$673,666.66
Municipal Bonds:
City of Brantf ord S 6.930.00
City of Calgary 4.550.00
City of Edmonton 19,678.26
City of Femie 4,200.00
City of Gait 4,150.00
City of London 6.440.00
City of Moose Jaw 4.800.90
City of Nanainio 4,250.00
City of Port .\rthur 16,847.71
City of Revelstoke 4,100.00
City of St. Thomr.« 7,600.00
City of Toronto 7,592.00
City of Vancouver 12.498.70
LIABILITIES.
Xet Unadjusted Losses —
Fire $ 22,837.61
Marine 67,649.41
Resei-ve for Accruing Taxes 18.600.00
Current Unpaid Accounts 6.694.67
Deposit .Account Re-Insuring Companies 198,595.99
Unearned Premium Reserve 333,759.52
Hail Reserve 20,271.06
SuRPLi'S TO Policyholders —
Excess of Cash .Assets over Liabilities 292.653.83
City of Waterloo
Town of Amherstburg
Town of Goderich . . . .
Town of North Bay . ,
Village of Tweed
District of Burnaby . . .
6.307.80
4,705.14
7,426.57
5,120.32
2,506.14
4,229.13
133.932.67
Stocks:
Dominion Bank $ 9,600.00
Bank of Toronto 10.010.00
Imperial Bank 9.400.00
Huron and Erie Mortgage
Corporation 12,690.00
41,700.00
Mortgage 12,500.00
Accrued Interest 7,402.99
Cash in Banks and on hand 18,272.84
Agents' balances (net) 70,129.58
.«;undiv Debtors 3,457.35
Total Assets $961,062.09
$961,062.09
Paid-up Capital $250,000.00
i''iiiiiiinnininniimiiiniiiiiiitnninniiiiiiiiininiiiiiiiiiiiiiiMiiinniiiinnniniiiiiiiiiiiiiii!iiimiiiiiiiiiiiiiiiiniiiiu(^
DIRECTORS:
I.IKUT.-COLONEL ROBT. F. MASSIE, D.S.O., President
K. A. BROCK. Montreal
R. S. CASSELS, K.C., Toronto
GEO. J. CUTHBERTSON, Montreal
PHILIP POCOCK, London. Ilce-Prcsident
R. J. HUTCHINGS, Calgary
EMILE OSTIGUY. Montreal
DR. THADDEUS WALKER. Walkerville.
NEIL W. RENWICK, Toronto, Secretary
492
^iiiiiiiiiuiiiiiiiiiiiiiiiiwiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiom
iiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim^^^^^^^^^
THE MONETARY TIMES
Volume 66.
Nova Scotia Steel and Coal Company^ Limited
and Subsidiary Companies
TWENTIETH ANNUAL REPORT
To the Stockholders: —
The Board of Directors submits its Twentieth Annual
Report of Operations for the fiscal year ended December
olst, 1920, tosether with the financial statement, and a
general report on the conditions of your property.
As anticipated at the beginning of the year, the volume
of business for 1920 reached satisfactory proportions,
amounting to $19,.558,4T9.64, as compared with $6,869,941.90
in 1919.
COLLIERIES.
The improved demand for coal which commenced in the
Autumn of 1919 continued during the greater part of the
year, but perceptible slackening was noticeable in the early-
part of November, and since that time it has decreased
rapidly.
The general shortage of coal in Europe and the
threatened strike of coal miners in Great Britain increased
the foreign demand very materially, and the Company was
able to secure in the early part of the year some very at-
tractive contracts for coal for export. Only a part of the
deliveries under these contracts was overtaken, when an
embargo placed on the export of coal by the Federal Gov-
ernment resulted in their cancellation and made it necessary
to secure other employment for the steamers engaged for
this business, the result of which entailed a serious loss to
the Company.
It is regrettable that this overseas outlet for coal, which
was only secured after a great deal of effort on the part of
the Company, was thus interfered with and, we fear, lost
permanently.
In the early part of the summer your Directors felt
that the demands of the coal trade warranted the opening of
an additional colliery at Sydney Mines. The work has pro-
gressed favorably, and this mine will by the opening of navi-
gation be in position to produce 400 tons of coal daily.
While for the moment owing to the closing down of the
Blast Furnace and Steel Plant the amount of coal being
banked is larger than usual, your Directors hope that as
soon as navigation opens the demand for coal will enable the
Company to dispose of a reasonable amount of banked coal
as well as the full output of its various collieries.
The output for the year was 633,84.5 tons, as compared
with 550,96.5 tons in 1919.
IRON ORE MINES
The operations at Wabana were restricted almost en-
tii-ely to development work and consequently the output of
Ore was but slightly larger than last year, amounting to
265,755 tons, as against 213,410 tons in 1919. Of the ore
mined, 124,014 tons were shipped to North Sydney. There
was also shipped to Europe 12,375 tons, of which 6,752 tons
was shipped on a pre-war contract and the balance sold f.o.b.
Wabana. While ocean freight rates have fallen very ma-
terially, the depression in the Iron and Steel trade in both
Europe and the United States has up to the present militated
seriously against any considerable business in the expoi-t of
iron ore.
IRON AND STEEL MANUFACTURE.
The demand for iron and steel products, which was satis-
factory at the time of the last annual report, continued until
Midsummer, when orders ceased almost entirely. The Com-
pany had accumulated a sufficient tonnage of unfilled orders
to keep the rolling mills in operation until the end of the
year. It was, however, considered advisable to shut down
the steel plant at Sydney Mines about the middle of Novem-
ber, and up to date conditions have not warranted restarting
this plant.
The Railways of Canada are still in need of rolling stock
and track material, and it is anticipated that, in the near
future, substantial orders will be given out, of which doubt-
less this Company will secure a reasonable proportion.
Below are the comparative figures of output for the
past two years: —
Tons— 1919 Tons— 1920
Coke made 45,462 90,440
Limestone cjuarried 33,410 64,645
Dolomite quarried 2,187 6,970
Pig iron made 35,676 73,829
Steel ingots made 58,238 114,869
Steel ingots cogged 54,645 117,958
Steel billets re-rolled 44,468 67,906
Total shipment of finished
steel, forgings, etc 44,051 95,087
SHIPBUILDING.
During the year the Company completed and delivered
two steamers, the "Canadian Miner" and "Canadian Sapper,'
each of 2,800 tons D.W., under contract with the Canadian
Department of Marine, and a similar steamer, the "Volunda,"
which has been retained for its own business. At present,
operations at the shipyard are restricted to finishing the hull
of the large cruising yacht contracted for in 1919.
COALING PLANT AT HALIFAX.
As a result of the acquisition of the Coaling Plant at
Halifax, mentioned in our last annual report, the Company
was enabled to dispose profitably of over 85,000 tons of coal
for bunkering purposes during the year, only a small part of
which business would have been available without these
facilities. The operation of the plant has demonstrated that
it can take care of the bunkering trade of Halifax, even if it
should greatly exceed its present proportions.
THE EASTERN CAR COMPANY, LTD.
At this plant 1,462 standard-gauge freight cars, 10
standard-gauge snow plows, and 157 narrow-gauge mine
cai^ were constructed and delivered during the year. On
December 31st the Company had on order 200 forty-ton
standard box-cars and 500 fifty-ton box-cars, specially equip-
ped for the grain trade, as well as some repair work for the
Sydney & Louisburg Railway.
ACADIA COAL COMPANY
Following the policy adopted last year when the pur-
chase of the First Preferred Shares of this Company was
made, the Scotia Company has been able to secure further
substantial holdings in the Acadia Coal Company.
CAPITAL EXPENDITURE.
The expenditure during the year on new properties and
on extensions properly chargeable to Capital account,
amounted to $889,676.78, the largest item in which was the
construction of the Steamer "Volunda," already referred to,
and other items were principally in connection with the ex-
tensions and development of the iron and coal mines.
GENERAL UPKEEP. ETC.
While the same extensive repairs as took place in 1919
were not necessary during the year just passed; the general
physical condition of the Company's Works and Properties
was well maintained, and were thought advisable, the equip-
ment was improved so that the works would be in a better
position to satisfactorily cope with the more difficult condi-
tions confronting the Company in its mining and manufac-
turing operations.
DIRECTORS.
The Directors regi'et to announce the resignation of
Mr. W. Hinckle Smith, of Philadelphia, and Col. D. C. Jack-
ling, of San Francisco, both of whom found great difficulty
in attending meetings of the Board in Canada. So far no
appointments to these vacancies have been made.
Submitted on behalf of the Board of Directors.
Yours respectfully,
D. H. McDOUGALL,
President.
March 18. 1921
THE MONETARY TIMES
35
Balance Sheet as at 31st December, 1920
ASSETS.
Mining Properties, Real Estate, Buildings,
Plant, Machinery ana Equipment, Less
Depreciation . ." $24,395,128.19
Investment in Capital Stock and Other Com-
panies 1,985,900.00
Company's Own Bonds Purchased for Sinking
Fund 265,636.16
Deferred Balances Receiyable on Houses Sold. 85,917.60
Current .4s.sets:
Inventories $ 5,415,079.55
Balances on Cars de-
livered to Government
and other Railways, due
January, 1921 952,452.36
Other Accounts and Bills Re-
ceivable, less Reserve.. 2,051,860.41
Dominion of Canada Victory
Bonds 1,261,458.33
Call Loans 100,509.59
Cash in Banks and on deposit . . 1,131,858.39
— 10,913,218.63
Deferred Charges to Operations:
Commission and discount on
Securities Issued, less
amounts written off $ 250,000.00
Development Expenditures,
etc 373,574.53
Insurance and Taxes Prepaid 122,024.74
745,599.27
$38,391,399.85
LIABILITIES.
Capital Stock:
Eight Per Cent. Cumulative
Preference: Authorized and
Issued— 10,000 Shares of
$100 each $ 1,000,000.00
Ordinary — Authorized and
Issued— 150,000 Shares of
$100 each 15,000,000.00
Six Per Cent. Cumulative Preference Stock of
the Eastern Car Co., Limited
Bonded and Debenture Debt:
Five Per Cent.
First Mort-
gage Sinking
Fund Gold
Bonds, due July
1, 1959— Au-
thorized $6,000,000.00
Less: Redeemed
by Sinking Fund 419,768.02
$ 5,580,231.98
Six Per Cent.
First Mort-
gage Sinking
F u n d G o 1 d
Bonds of the
Eastern Car
Co., Limited,
due July 1,
1952 $1,000,000.00
Less: Redeemed
by Sinking Fund 72,100.00
-$16,000,000.00
750,000.00
927,900.00
Six Per Cent.
First Mort-
gage Bonds of
the Nova
Scotia Land
Co., Limited,
due July 1,1924.$
Less: Redeemed
by Sinking
Fund
50,000.00
31,200.00
18,800.00
Six Per Cent. Mortgage De-
benture Debt 4,500,000.00
Current Liabilities:
Bank Loans $ 2,162,755.77
Accounts, Wages and Bills
Payable 1,744,910.00
Interest Accrued on Bonds
and Debenture Stock 307,196.51
Dividend on Preference Stock,
Payable January 15, 1921. 20,000.00
Dividend on Ordinary Stock,
payable January 15, 1921.. 187,500.00
Dividend on Preference Stock
of the Eastern Car Co.,
Limited, oavable January
15, 1921 45,000.00
Deferred Credits to Income:
Balances of amounts received
on policies covering the
future Earnings of Time
Chartered Steamers which
were sunk $ 484,717.50
Steamers' hire received in ad-
vance 54,969.44
4,467,362 28
Reserves :
For relining Furnaces, and
other Operating Reserves,
and for Government Taxes,
Contingencies, etc $
General Reserve
Surplus as per attached Statement.
591,549.80
2,000,000.00
539,686.94
2,591,549.80
3,015,868.85
$38,391,399.85
CONSOLIDATED STATE.MENT OF PROFITS AND LOSS
FOR THE YEAR ENDING DECEMBER 31. 1920.
Combined Profits from Operations and Income
from Investments, after making provision
for Government Taxes but before deduct-
ing Depreciation and Bond Interest $ 2,376,086.02
Deduct: Provision for Depreciation 561,582.13
$ 1,814,503.89
Deduct — Interest :
On the 5% Mortgage Bonds of
the Nova Scotia Steel and
Coal Co., Limited $279,011.50
On the 6'''f Debenture Stock of
the Nova Scotia Steel and
Coal Co., Limited 270,000.00
On the G'-'r Mortgage Bonds of
the Eastern Car Co., Ltd.. 56,085.00
605,096.50
Net Profits for the year $ 1,209,407.39
Add: Surplus brought forward January 1, 1920. 2,726,461.46
Deduct:
Dividends on 8'~r Cumulative
Preference Stock of the
Nova Scotia Steel and Coal
Company, Limited $ 80,000.00
Dividends at o'~'c per annum on
the ordinary stock of the
Nova Scotia Steel and Coal
Company, Limited 750,000.00
Dividends at 6% per annum on
the cumulative preference
stock of the Eastern Car
Co., Limited, for the years
1919 and 1920 " 90,000.00
$ 3,935,868.85
920,000.00
Surplus carried forward
11.026,931.98
. . .$ 3,015.868.85
AUDITORS' REPORT TO THE SHAREHOLDERS:
We have examined the books and accounts of the Nova Scotia Steel & Coal
Company. Limited, and Subsidiary Companies, for the year ending December 31.
1920. and have obtained all the information and explanations which we required ;
and we certify that, in our opinion, the above Balance Sheet at December 31,
1920. is properly drawn up so as to exhibit a true and correct view of the state of
the Company's affaire, according? to the best of our information and the explana-
tions given to us, and as shown by the books of the Company.
Montreal. February 19. 1921 Sgd.) PRICE. WATERHOUSE & CO.. Auditors
491
36
THE MONETARY TIMES
Volume 6G.
AN ASPECT OF THE EXCHANGE PROBLEM
Restriction of liiiporls of Non-Essentials Would be a Quick
and Kfft'ctive Kemedy — Recovery Will Likely be Slow-
By Hugh E. Arnold
Vancouver, B.C.
I^ITH the advent of more stringent trading conditions
" than those that have prevailed during the last few
years, and the retui-n to ".• more normal basis, the time seems
to have come when serious consideration must be given to the
question of the depreciated Canadian dollar. As long as
money and employment were abundant in Canada the public
could afford to look, as they did, with a certain complacency
upon the adverse exchange that existed between this country
and its neighbor to the south, though the situation might
occasion concern to the government and the financial com-
munity. Clearly, in the wave of economy that is now pass-
• ing over Canada, p,.s it is over other countries, this factor in
the high cost of commodities must be definitely grappled with
and some alleviative applied, if one can be found. That this
will become an increasingly urgent demand on the part of
the public as the retrograde movement in business proceeds
is fairly certain.
At the moment of writing the Can&dian dollar stands at
a discount of about 12 cents in New York. A rough idea of
the heavy loss incurred in the course of a year by the people
of Canada may be gathered from a brief calculation based
upon the figures dealing with our import and export trade
with the United Sta^tes recently issued by Ottawa. These
returns show that for the twelve months ended October 31
last our imports from that country totalled $924,000,000,
while our exports there were valued at $530,000,000, leaving
an unfavorable trade balance of $394,000,000.
Suggests Embargo on Imports
The problem of depreciated cui-rencies is of course a
much more acute one, and a greater obstacle to trade in
Europe than in the American continent. The following con-
tribution to the discussion of the European iwfrassc in the
exchanges made by an influential figure in the financial
world of London, cannot fail to be of interest here too. To-
wards the end of August last, and shortly before the writer
left London, The Times newspaper published a letter from
Mr. Franklin, a partner in the old a.nd very well-known
foreign banking house of Messrs. Samuel Montagu and Co.,
of Old Broad St., London, of which firm Lord Swaythling is
the head. This letter states that in the writer's opinion, the
best and most effective method of re-establishing as speedily
as possibly the value of a country's currency aga-inst that of
another, is for that country to prohibit for a time unneces-
sary imports from the other one.
Mr. Franklin in his letter cites with approval the example
of Norway. That country's currency, though she had not
been a belligerent in the late war, had begun to suffer de-
preciation, and the London papers of August 27-28, 1920, pub-
lished telegraphic reports to the effect that the Norwegian
government had "forbidden altogether the import of a large
category of luxury goods, and had established an import
council which would advise it on questions arising out of the
prohibition. On the forbidden imports list, which may later
be increased, are re&dy-made luxury clothing and textiles,
carpets, hats with flowers, feathers, pearls, diamonds and
other precious stones, jewellery of gold, silver and platinum,
fine glass and pottery, chandeliers and lamps of fine quali-
ties, paintings, furniture upholstered or of fine woods, art
works of stone, alabaster, etc., pianos, gramophones, fine
furs, luxury boots and shoes, carriages, personal motor-cars
and motor-cycles, toys, clocks and fine watches. In connec-
tion with these prohibitions a decree was issued against
raising the prices of goods of the kinds mentioned wfhich are
already in stock." {Westminster Gazette, August 27, 1920.)
Affects Cost of Essentials
It is not enough merely to tax imports of a luxury
description. The difficulty is that the rich in Canada — or
those that think themselves rich — in purchasing freely these
luxury goods almost regardless of cost and the tariff' im-
posts, necessarily force up the price of essentials originat-
ing in the United States that are needed by poorer people.
Hence a large importation by the wealthy of, say, American
motor-cars means expensive domestic hardware for people
of smaller means. It is no great consolation to those less
fortunately situated people to know that the rich have had
to pay a heavy import tax to the Canadian government, and
so help to swell the national treasury, when they purchase
these things. The receipts from that tax will not be dii'ectly
applied to righting the adverse exchange, and the discount on
Canadian funds will continue in the United States, making
imported necessities also expensive.
This was the situation in Great Britain during the latter
half of 1919 and the first half of this year. The reckless and
inconsiderate buying of American luxury goods by the richer
people there was in no small measure responsible for forc-
ing up, or rather keeping up, the high price of a long list of
essentials, food products, etc., and thus retarding a return to
more noiTnal conditions. A minister of finance in these days
is no doubt disposed to view an increase of revenue arising
out of luxury taxes and the tariff" with a certain degree of
equanimity, but he cannot afford to be blind to these other
considerations.
Recovery May be Slow
The course advocated by Mr. Franklin appears to be
worthy of serious consideration by the Canadian govern-
ment. It may be thought by some a drastic remedy, but
the circumstances are such as to call for energetic action.
It is to be noted that — unless the writer is misinformed —
it was fourteen years before the United States dollar re-
covered its parity after the civil war; and it is perfectly
conceivable that a varying but substantial discount on the
Canadian dollar may continue for a considerable period unless
measures are adopted to remove or mitigate it.
As Canada's chief foreign trade is done with the United
States, it is of the first importance that the government
seriously address itself to the problem as to how the Cana-
dian dollar can be restored to its par value in relation to
American money, and the heavy and protracted loss that is
falling on the Canadian people, arrested.
LOOKS FOR BUSINESS ADVANCE
"Go ahead with full steam, but watch carefully for the
danger signals," was the advice given by A. J. Felton, Can-
adian manager for the Alexander Hamilton Institute, in an
address on "Present business conditions and their improve-
ment through the medium of better and higher salesman-
ship," to the members of the Toronto Kiwanis Club on March
9. "Canada and Toronto for 1921 has a business problem
that cannot be ignored, the problem is here now, but it is
not half as serious as some men think it is. We must have
vision and perspective, and if you are going to wait on the
development of industry and business until you see the
money, there will be a lot of industries that will never be
started. Go back to 1914 and consider what has happened
since then. I defy any man to say that seven years ago he
could foresee the amount of money raised in Victory Loans.
Toronto needs large clubs, a large opera house and many
other things to shove the city ahead, and once the projects
are commenced the money will be forthcoming."
G. A. Stimson and Co., Toronto, have issued an "In-
vestor's Reference," describing about 80 issues of sterling
securities, i.e.. Canadian government, municipal and railway
bonds originally sold in Great Britain.
March 18, 1921
THE MONETARY TIMES
•llllllllllllllllllllllMIIIIIIIIIIIIIMIIIinilllllMllllinillllllllllllllltllllllllllllMIIMIMIIIIIIIIIIIIIIIIIIIIUIIinilMIIIIMinillMIIIIIIIIIIIIIIIIIIIIIIIM^
I CHARTERED ACCOUNTANTS [
iiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiisiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii=
KENNETH BOWMAN
Chartered Accountant
(Successor to Baldwin. Dow & BowmanI
EDMONTON
ALBERTA
CHARLES D. CORBOULD
Chartered Accoantant and Aaditor
ONTARIO AND MANITOBA
848 Somerset Block. Winnipeg
Correspondents :\t Toronto. London, Ens-.
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
nd
\V. A. Bawukn. C.A. iF.C.A. UnRland
Wales). F. H. Kidd. C.A.
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C
Branch at Naoaimo, B.C.
Telegraphic and Cable Address.
■•\edwab." Victoria. B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON ONTARIO
Kstablishcd ISS'i
W. A. Henderson & Co.
Chartered Accountants
508-S09 Electric Railway Chambers
Winnipeg, Man.
W. A. Henders.>n. C.A. J, J. Cordner. C.A.
Cnblf :^Jdress "Ormlie" Western fiiion Cp.le
Arthur E. Phillips & Co.
chartered Accountants
508-509 Electric Railway Ckambers
WINNIPEG - - Man.
C.ibk .\ddrcss— " I'nravel.--
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS.
24 King Street West ■ TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Chartered Accuuntanis, Andiiors,
Trustees. Liquidators
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Specialists on Factory Costs asp Propiction
Bank of TORONTO
Hamilton BIdg. * '-'IxWl^ i «-»
Hubert Reade & Company
[Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDlNt,
•WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING - - TORONTO, CANADA
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Chartered Accountants. Trustees.
Receivers. Liquidators
Merchants Bank BIdg.. 15 Wellington Street West ToronI
, ,. . G. T. Clarks
Hstablished IS64 t> ■ ndwor
R. Williamson. C.A. J. I). Wallace, C.A.
A. .1. Walker, C.A. H. A. Shiach, C.A.
RUTHERFORD WILLIAMSON & CO.
Cliartercd Accountants. Trustees and
Liquidators
86 Adelaioe Street East. TOKONTO
C04 McGii.i. Building, MONTREAL
Cable Address - " Wl LLCO ■
Represented at Halifax. St. John. Winnipee.
HENRY BARBER &
EKtablinhcd 1885
CO
Chartered Accountants
AUTHORIZED TRUSTEES
BANKRUPTCY
IN
Grand Trunk Railway Building,
6 King Street West TORONTO
J.
Culross Millar, C.A.
alter J. Macdonald, C.A.
Mill
ar,
Macdonald &
Co.
Ch
artered Accountants
Home
Ban
k Building, 428 Main
WINNIPEG
Street
Norman B. McLeod
Chartered Accountant
AUDITS INVESTIG.\TIONS
COST ACCOUNTING
803 Kent BIdg. - TORONTO
Phone MAIN 3914
THE MONETARY TIMES
ACTION BY CREDITOR AGAINST ESTATE
Administrator Who Did Not Plead Insufficiency of Assets
Held Liable For Note
THE Saskatchewan Court of Appeal recently held that an
executor who in an action by a creditor of the estate
does not ple&d that he has administered the estate in full
in his defence, must be taken as admitting assets to satisfy
the judgment.
The case was that of Langstaff vs. Langstaff, the facts
being that the plaintiff, Helen May Langstaff, carrying on
business a^s the Western Fruit and Provision Co., was the
wife of W. F. Langstaff, and brought the present action
against Harvey and Maud Langstaff as administrators of the
estate of their deceased father, James Dudley Langstaff.
At the time of action no letters of administration to the
estate of James Dudley Langstaff had issued, but at a
subsequent date, letters were granted to F. G. Squirrell, who
was thereupon joined as a defendant. The plaintiff claimed
payment of two promissory notes of $3,000 and $2,000, re-
spectively, alleged to have been made by James Dudley
Langstiiff. The first-named note was admitted at trial, but
all the defendants denied the signature of James Dudley
Langstaff to the second note. Squirrell admitted that he was
administrator appointed after the commencement of the ac-
tion, but did not plead plene administravit , or want of assets.
Doubt as to Signature
The action was tried before Justice Bigelow without a
jury and the evidence as to the execution of the note by
James Dudley Langstaff was contradictory. It appeared
that the note in question was claimed to have been given by
James Dudley Langstaff to W. F. Langstaff for an alleged
loan. It was dated May 6, 1918, was payable on demand but
no demand for payment had been made in the deceased's life-
time. The plaintiff claimed as holder in due course. In sup-
port of the plaintiff, W. F. Langstaff testified to the signa^
ture of James Dudley Langstaff, and one Meech testified that
she saw the note signed. Three witnesses were called as
experts in handwriting, who all gave opinions that the sig-
nature was not that of James Dudley L&ngstaff.
Judgment for Plaintiff
The judgment appealed from is as follows: —
"Although the $2,000 note is suspicious, and the circum-
stances justify the administrators in disputing it and insist-
ing on strict proof, after looking at the evidence with great
care and thoroughly sifting same, I ha-ve come to the con-
clusion that the note was made by the deceased. Against
the opinion evidence of some bankers as to the signature we
have the positive evidence of W. F. Langstaff, corroborated
by Flora Meech and Ruby Cairns.
"There will be judgment for the plaintiff declaring that
the defendants are liable to pay the amount claimed with
interest and costs to be taxed in the course of administration
of the estate, with liberty to the plaintiff to apply further if
necessary.
"As I think the defendants were justified as to the $2,000
note in seeking a judgment of the Court before recognizing
liability, their costs, in so f&r as the issue on the $2,000 note
is concerned, will be paid out of the estate."
Plaintiff Upheld on Appeal
On appeal, Haultain C.J.S., says in his judgment: —
"The trial judge, after seeing the witnesses and hear-
ing their evidence, has found for the plaintiff, in spite of the
fact tha't he considered the note in question 'suspicious.'
There is ample evidence to support that finding, and I do
not think we should be justified in reversing it. The trial
judge has directed that the judgment against the adminis-
trator should be for payment of the amount due and costs
in due course of administration. I think that, as the admin-
istrator did not plead plene admitiistravit in his defence, he
must be taken as admitting assets to satisfy the judgment."
TRUST COMPANY CASE IN PRIVY COUNCIL
A recent London cable states that the Privy Council
was considering the appeal of Miss Lottie Sheehan against
the Mercantile Trust Co. The trust company is the ad-
ministrator of the estate of the late Edman Brown. Miss
Sheehan was his bookkeeper, and her claim is that he prom-
ised to marry her when his wife died, and gave her a note
promising to leave her $10,000 at his death. Justice Clute
gave judgment in her favor. The Ontario Court of Appeal
reversed his decision on the ground that Brown's promise
to marry her while his wife was living was illegal, and the
note for $10,000 was revocable. In the Supreme Court the
Chief Justice, Sir Louis Davies, held that the note was irre-
vocable, but the other judges, with the exception of one,
held that the judgment of the Court of Appeal was correct.
ACCOUNTANTS' FEES NOT TAXABLE
An Alberta judge, on appeal from the taxation of the
supreme court at Lethbridge in the case of the municipal
district of Bow Island, and A. P. Werts, has ruled that the
plaintiff is not entitled to tax as disbursements a chartered
accountant's fee where the investigation of the books of the
municipality took place five months before action was com-
menced and was held owing to the fact that the munici-
pality had become suspicious of the secretary-treasurer.
The item, according to the judgment could not be re-
covered under the English practice, but solicitor for the re-
spondent contended that same could be taxed under the rules
as to costs in force in Alberta. The Alberta rules of court
provide that the court or a judge may direct that the costs
shall include the reasonable charges of accountants for in-
vestigations, etc., made for the purpose of giving evidence
or assisting in the conduct of the proceedings.
The jugdment sets forth that the investigation was for
the purpose of allaying the suspicions and was not therefore,
an investigation, the expenses of which could be taxed under
the rule. The appeal was allowed with costs.
ALBERTA'S 1920 FIRE LOSSES
Complete returns for the past year of fires and fire
losses in Alberta have now been compiled by the government,
showing that for the twelve months 870 fires were reported,
with losses of $1,054,191.
The figures so reported are not regarded as fully repre-
senting the province's losses through fire, and on the basis
of the Dominion government reports it is believed that the
actual total will figure up to about $2,000,000. The reason for
the difference in the two estimates is that the provincial de-
partment was only beginning its fire-reporting system last
year, and the machinery did not get into full working order.
For the present year, however, it is intended to collect in-
formation regarding fires in all parts of the province by
means of periodic reports from fire chiefs in cities and towns
and from municipal secretary-treasurers in other places,
thus securing a complete record of the damage caused by
fire all over Alberta.
INSURANCE LICENSES IN ALBERTA
A new application for license form has recently been
issued by the insurance department of the province of Al-
berta. This form is similar in ma^ny respects to the new
form recently introduced and now in use by the insurance
department of the province of Ontario. The following addi-
tional questions are, however, asked by the Alberta depart-
ment: Have you within the past year rebated or offered to
rebate any portion of your commission to any person or
company? And do you object to this department notifying
your present employer that you have applied for or been
granted a ceilificate to solicit life insurance?
March 18, 1921
THE MONETARY TIMES
^111 iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiMMiiiiiiiiiiiiiiMiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiim^^^
j REPRESENTATIVE LEGAL FIRMS |
illlllllllllllMllllllllllllllllMIIIIHIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII^
CALGARY
Charles F. Adams, K.C.
Bank of Montreal Bldg.
CALGARY - ALTA.
VV. F. \V. Le
. K.C. .Ale
LL.B. H. D. .Ma
LENT, MACKAY & MANN
BarrUMni, HoUcltorg. Notaries, Etc.
305 Grain Exchange Bldg . Calgary, Alberta
Cable Address: Lenjo.- Western Union Code
Solicitors for The Standard Bank of Ca
The Northern Trusts Co., As5
gage Investors. &c.
:iated Mort-
WRIGHT & WRIGHT
Barristers, Solicitors, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. A. C. Rutherford. K C , LL.I)
F. C. Jamieson. K.C. Chas. H. Grant
S. H. McCuaig Cecil Rutherford
RUTHERFORD. JAMIESON
& GRANT
Barrittert, Solicitors, Etc.
514-18 McLeod Kdg. Edmonlon, Alberta
LETHBRIDGE, Alta.
Conybeare, Church
&
Davidson
Barristers. Solic
tors. Etc. 1
Solicitors
and Loan
for Bank of .Mo
Co. of Canada.
Trust Co.. &c
It re
Brit
1. The Trust
ish Canadian
C. F. P. C
inybearc. K.C. H
R. R. Davidson,
. W. Church. MA. 1
LL.B. 1
Lethbn
dec
Alta. 1
LETHBRIDGE, Alta.
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE
MEDICINE HAT
G F. H. Long. LL.B. J. VV. Sleight, B.A.
LONG & SLEIGHT
BarristerM, etc.
MEDICINE HAT and BROOKS. Alta.
MOOSE JAW
\\ lUi.im Gr.iyson. K.C. T.J, Knn.r.,on
Lester .McTaggart
Grayson, Emerson & McTaggart
Barristers, Etc.
Solicitors-Bank of .Montreal
Canadian Bank of Commerce
Moose Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C,
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT. SASK.
SASKATOON
C. L. DURIE. B.A. B. M. \Vak[:l.ing
DURIE & WAKELING
Barristers and Solicitors
Solicitors for the Bank of Hamilton. The
Great West Permanent Loan Co. The
■Monarch Life Assurance Co.
Canada Ballding Saskatoon, Canada
TORONTO
G. W. MORLEY & COMPANY
Barristers. Solicitors. Etc.
802 Lumsden Building, Toronto
Solicitors for A. G. Spalding & Bros, of Can.,
Ltd.; A. J. Reach Co. of Can.. Ltd.: Dominion
ChautauLiuas. Ltd.. etc.. etc.
Special attention given to Corporation work
and collections.
Cable .\ddrcss: "Morley." Toronto
VANCOUVER
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers, Solicitors. Etc.
Solicitors for Bank of Montreal (Bank of
British North America Branch)
Yorkihire BaiMion. SZS Slymour St., VucoDvtr. B.C.
Your card here tvould
ensure it being seen by
the principal financial
and commercial interests
in Canada. Ask about
special rates for thispage.
J. A. THOMPSON & CO.
Government and Municipal Securities
fTealern nnuk-tpal. Sriiool anil Saskatrtirwan Kural Tele-
phone < i>. ilrhrniureit »perlallzed In.
CORRESPONDENCE INVITED
Union Bank Building ■ WINNIPEG
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Elxchsmge
Calgary, Alta.
A. J. Pattison Jr. & Co.
Members
Toronto Stock Exchange .Montreal Stock Exchange
Specialists Unlisted Securities
106 BAY STREET - - TORONTO
40
THE MONETARY TIMES
Volume 66
NEWS OF INDUSTRIAL DEVELOl'MENT
Several Canadian Plants Have Reopened or Will Do So
Shortly — Iron and Steel Trade Conditions Outlined
at Scotia Meeting
VIT'HILE the revival in business has not up to the present
» * been very significant, there are some unmistaliable
signs. From time to time during the past two months, an-
nouncements have been made of pl&nts reopening which had
been forced to close down because of poor trade and other
circumstances, and during the past week further evidence in
this regard was forthcoming.
The Canadian-Connecticut Cotton Mills plant at Sher-
brooke, Que., which shut down last December, throvring nine
hundred employees out of work, has reopened with two-thirds
of the former working staff, and in &ccordance witli a policy
which has now become fairly general, a reduction in wages
has been made. At the same time, announcement is also
made that the plant of the Julius Kayser Co., in the same
city, is running at capa.city, and many hands have been added
to the staff. The company, which manufactures gloves and
silk stockings, intends to reopen its old factory shortly so
that it can fill all of its orders.
It is expected that the plant of the McLeod Pulp Co. at
Milton, N.S., will open about April 1. This mill was closed
down in February, and five hundi'ed people in Queen's, Lunen-
burg and Shelburne counties were thrown out of employment.
The company has about 2,500 cords of wood, which will be
an entire loss if unused before July. It is also understood
that the mill of the Fraser Companies, Ltd., at Chatham,
N.B., will shortly resume operations.
The Canadian Ingersoll Rand Co. have received some big
orders, which will necessitate an increase in the working
staff in the near future, according to reliable information.
Sawyer-Massey Co., Ltd., continues operations on a very
favorable basis. The company's products, which include
agricultural and other machinery, are always in demand, and
more particularly so at this time of the year. In his report
at the annual meeting, the president remarked that with the
exception of a period of two weeks in November, when the
inventory was being taken, the plant has been in continuous
operation during the entire year. The demand for road-
making machinery continues active, he stated, a large ship-
ment of this class of goods having recently been made to
Kingston, Jamaica. The connection established by the com-
pany in the United States in 1919 continues to expand, and
contracts ha^ve been entered into with a reliable company
covering the sale of threshers for three ensuing years.
The Walker Pant and Shirt Co. will start operations
again in its factory at Chatham, N.B., after being closed
down since last Christmas. The fact that the dealers
throughout the country are running short of their stock is
shown by the fact that, during the past few weeks, several
orders have been received by the company. The opening up
of this factory will mean an increased number of the em-
ployed of the city, the majority of the employees being girls.
The Iron and Steel Trade
At the annual meeting of shareholders of the Nova Scotia
Steel and Coal Co. last week, some information regarding the
condition of the iron, steel and coal trade was given out by
the president, D. H. McDougall. He stated that the rail-
ways of Canada ai-e still in need of rolling stock a^nd track
material, and it is anticipated that, in the near future, sub-
. stantial orders will be given out, of which, doubtless, this
company will secure a reasonable proportion. The improved
demand for coal which commenced in the autumn of 1919
continued during the greater part of the year, but perceptible
slackening was noticeable in the early part of November and
since that time it has decreased rapidly. The general short-
age of coal in Europe and the threatened strike of coal miners
in Great Britain increased the foreign demand very materi-
ally, and the company was able to secure in the early part of
the year some very attractive contracts for coal for export.
Only a part of the deliveries under these contracts was over-
taken, when an embargo placed on the export of coal by the
Federal government resulted in their cancellation, and made
it necessary to secure other employment for the steamers
engaged for this business, the result of which entailed a
serious loss to the company.
"It is regrettable," said Mr. McDougall, " that this over-
seas outlet for coal, which was only secured after a great
deal of effort on the part of the company, was thus inter-
fered with and we fear lost permanently. While for the
moment, owing to the closing down of the blast furnace and
steel plant, the amount of coal being banked is larger than
usual, your directors hope that as soon as naWgation opens,
the demand for coal will enable the company to dispose of a
reasonable amount of banked coal as well as the full output
of its various collieries. The output for the year was 633,845
tons as compared with 550,965 tons in 1919."
Mr. McDougall said work at Wabana was restricted al-
most entirely to development work. Output of ore was 265,-
755 tons against 213,410 tons in 1919. Of the ore mined
124,014 tons were shipped to North Sydney. There was also
shipped to Europe 12,375 tons, of which 6,752 tons were
shipped on a pre-war contract and the balance sold f.o.b.
Wabana. While ocean freight rates have fallen very mater-
ially, the depression in the iron and steel trades in both
Europe and the United States has up to the present militated
seriously against considerable business in the export of iron
ore.
The demand for iron and steel products which was sat-
isfactory at the time of the last annual report continued
until midsummer, when orders ceased almost entirely. The
company had accumulated a sufficient tonnage of unfilled
orders to keep the rolling mills in operation until the end
of the year. It was, however, considered advisable to shut
down the steel plant at Sydney Mines about the middle of
November, and, up to date, conditions have not warranted
restarting this plant.
Sash and Door Manufacturers
A new company under the name of Steel Sash, Ltd., has
located in London, Ont., and has commenced the manufac-
ture of steel sash and metal windows. The Canadian rights
of the patents have been secured from the Bogert and Car-
lough Co., of Paterson, N.J., which organization is I'ated
among the largest of the manufacturers of steel sash and
metal windows in the United States. Though Steel Sash,
Ltd., will be closely connected with the American company,
it is a Canadian firm, the promoters and directors consist-
ing entirely of local business men.
The Radford-Wright Co., Ltd., wholesale sash and door
manufacturers, have purchased the entire plant of T. G.
Brown, sash and door manufacturer, on South Hill, Moose
Jaw, Sask. The new owners secure possession on April 1,
and will commence alterations at once to equip » most modern
sash, door and millwork factory. The deal was completed
by W. Wright, president of the Radford- Wright Co., of
Duluth, and J. A. Wilson, general manager of the company
at Winnipeg.
TREATY REINSURANCES. LIMITED
Treaty Reinsurances, Ltd., of London, Eng., in its state-
ment for the year ended June 30, 1920, shows net premium
income in the fire and general account of £102,864, and claims
paid £27,592. After paying all outgoings and transferring
£2,500 to investment reserve fund, there remains a balance
of £42,757. In the marine account the net premium income
was £28,530, and claims £6,131, a balance of £19,622 remain-
ing in this account.
The scheduled assets of the company are £109,265. In
addition, further security for the obligations of the com-
pany is provided by an agreement of indemnity, which has
been entered into by each of the shareholding companies.
March 18, 1921
THE MONETARY TIMES
The Imperial
Guarantee and Accident
Insureuice Company
of Canada
Head Office, 20 VICTORIA ST., TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $200,000.00
Authorized Capital - - - $1,000,000.00
Subscribed Capital - - - $1,000,000.00
Government Deposits - - $111,000.00
L/-^ ^ P||-^ 1\T GUARANTEE AND
^"-^ ^^ *-' ^-^ ^^ ACCIDENT COY., Limited
Head Office for Canada- - Toronto
:e, Internal Revenue. Sickncs
Teams and Automobile.
AND FIRE INSURANCE
IT PAYS TO INSURE YOUR AUTOMOBILE
\^ITH
The Canadian Surety Company
Maximum Service.
Mi,
Cost.
CANADIAN STRONG PROGRESSIVE
FIRE INSURANCE
AT TARIFF RATES
General
Fire
Intorance
Accident
Health
Capital Subscribed
.si^smrn
mmim
$500,000 Automobile
Insurance
Fire and
Theft
Liability
Property
Damage
Collision
Burglary
A. E. Ha«. Vice-Prtsident Homb Ofpicb
J. O. Melin. Sec.-Treas. lOlh Floor, Electric Railway Chambers
Good Openings for Live Agents
Palatine Insurance Company
LIMITED
OF LONDON, ENGLAND
Capital Fully Paid - $1,000,000
Fire Premiums, 1919 3,957,650
Total Funds - 6,826,795
ere 'S the further Guai
ny. Limited, whose fi
Head Office :— Canadian Branch
COMMERCIAL UNION BUILDING, MONTREAI.
W. S. JOPLING, Manager
Toronto Offict— 60 KING STREET WEST
Jones & Proctor Bros., Limitrd, Agents
lOIfllilllillllllllllDllllIlllllillillllllllillllllllllllllil
I Automobile— 1 92 1 —Season |
1 Policies to cover ANY or ALL motoring risks S
■ ATTRACTIVE AGENCY CONTRACTS ■
I British Empire Fire Underwriters |
I 82-88 King Street East, Toronto |
I Assets Exceed $4,000,000 B
saiiiniiiniiinniiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiniiiniiiiiii
THE EMPLOYERS'
LIABILITY ASSURANCE CORPORATION
OF LONDON, ENG. LIMITED
ISSUES
Personal Accident Sickness
Employers' Liability Automobile
Workmen's Compensation Fidelity Guarantee
and Fire Insurance Policies
C. W. I. WOODLAND
General Manasjer for Canada and Newfoundland
Lewis Building,
MONTRK.'M,
JOHN JENKINS,
Fire Manager
Temple BIdg.
TORONTO
ASK FOR AN AGENCY FROM THE
"GRESHAM"
Liberal Policies Reduced Premiums
ESTABLISHED 1848
Funds Exceed Fifty Million Dollars
Gresham Life Assurance Society
Gresham Building
MONTREAL
THE MONETARY TIMES
Volume 66.
NEW INCORPORATIONS
Total Capital for Week Ended March 15 is $11,236,000,
Compared with $25,351,300 Previous Week
Authorized capital of $11,236,000 is represented by com-
panies whose incorporation was reported to The Monetary
Times during the week ended March 15, compared with $25,-
351,300 for the previous week. A comparative summary by
provinces is as follows: —
Week ended Week ended
March 8. March 15.
Dominion $11,895,000 $ 1,700,000
Alberta 908,000
British Columbia 760,000 1,570,000
Manitoba 5,310,000
New Brunswick 107,400 130,000
Ontario 6,141,000 3,670,000
Quebec 1,077,900 3,258,000
Saskatchewan 60,000
Total $25,351,300 $11,236,000
The following is a list of companies recently incorporated
under Dominion charter, with head office and authorized
capital: —
Lacroix Insurance, Ltd., Montreal, $500,000; Centre
Amusement Co., Ltd., Ottawa, $100,000; Normandy Sales
Co., Ltd., Toronto, $50,000; Charles Logue, Ltd., Maniwaki,
Que., $350,000; Universal Tires, Ltd., Montreal, $50,000;
Gunite Co. of Canada, Ltd., Hamilton, $50,000; Consolidated
Chemical Co., Ltd., Port Hope, $100,000; Saunders- Alberta
Collieries, Ltd., Toronto, $500,000.
Provincial Charters
The following is a list of companies recently incorporated
under provincial charter, with head office and authorized
capital: —
Alberta.— Arctic Boat Co., Ltd., Edmonton, $20,000;
Northern Machinery Co., Ltd., Calgary, $50,000; Carbon Fuel,
Light and Power, Ltd., Calgary, $600,000; Clyde Building
Co., Ltd., Clyde, $3,000; Gas City Clay Products Co., Ltd.,
Medicine Hat, $20,000; Fleming Drug Co., Ltd., Edmonton,
$75,000; Gilmour and Mooney Grocery Co., Ltd., Edmonton,
$20,000; Edmonton Lease-Holders, Ltd., Edmonton, $100,000;
Roper Pharmacy, Ltd., Morinville, $20,000.
British Columbia.— Canadian Iron and Steel Smelters,
Ltd., Vancouver, $500,000; United Engineering Works, Ltd.,
Victoria, $5,000; Alberta Wood Yards, Ltd., Vancouver, $10,-
000; Penticton Fruit Storage Co., Ltd., Penticton, $30,000;
Albion Land Co., Ltd., Vancouver, $90,000; Trubilt Toy
Manufacturing Co., Ltd., Vancouver, $500,000; National Club,
Ltd., Vancouver, $10,000; Fulton's Style Shop, Ltd., Van-
couver, $25,000; Darling, Hobson and Winckler, Ltd., Van-
couver, $25,000: Sperling Shingle Co., Ltd., Vancouver,
$10,000; Calcium Carbonate Co., Ltd., Victoria, $50,000;
Edmonton Club, Ltd., Vancouver, $10,000; Marie Thompson
Investments, Ltd., Vancouver, $25,000; Sunset Seed Co., Ltd.,
Saanich, $100,000; Ensenada Commercial Co., Ltd., Van-
couver, $50,000; New Brunswick Club, Ltd., Vancouver,
$10,000; Pacific Tractor and Plough Co., Ltd., Vancouver,
$50,000; Whitell Publishing Co, Ltd., Vancouver, $25,000;
British Columbia Italian Commercial Club, Ltd., Vancouver',
$10,000; Robert S. Day and Son, Ltd., Victoria, $25,000;
Matsqui Oil Syndicate, Ltd., Victoria, $10,000.
New Brunswick.— Eastern Flax and Seed. Ltd., Lower
Abougoggin, $40,000; Nagle and Wigmore, Ltd., St. John,
$90,000.
Ontario.— Knox Optical, Ltd., Toronto, $40,000; William
Lauder, Ltd., Toronto, $40,000; .lohn E. Russell Co., Ltd.,
Toronto, $300,000; Federal Advertising Agency, Ltd., Lon-
don, $50,000; V. D. L. Rubber Corporation, Ltd., Toronto,
$1,000,000; Fletcher Lumber Co., Ltd., Windsor, $100,000;
York Shoe Co., Ltd., Gait, $200,000; Joseph Sagar, Ltd., To-
ronto, $40,000; Soil Vaccine Co. of Ontario, Ltd., Toronto,
$200,000; Addison Farmers' Club, Ltd., Addison, $10,000;
Technical Ser\^ices, Ltd., Toronto, $600,000; Electric Re-
frigerators, Ltd., Toronto, $40,000; Grimsby Pioneer Laun-
dry, Ltd., Grimsby, $50,000; Geo. Pattinson and Co., Ltd.,
Preston, $1,000,000.
Quebec. — Villeneuve Dress Co., Inc., Montreal, $20,000;
Milk Products Corporation, Montreal, $100,000; Canadian
Stewart Wire Wheel Co., Ltd., Montreal, $300,000; Kacoste
and McMurray Co., Montreal, $10,000; Eastman Hardwood
Lumber Co., Ltd., Eastman, $49,000; Canada Slate Cor-
poration, Beauceville, $20,000; C. H. Spreiser, Ltd., Montreal,
$49,000; Acer Investment, Ltd., Montreal, $2,000,000; Beaver
Investment Co., Ltd., Montreal, $1,000; La Compagnie
d'Amiante du Lac a la Truite, Ltd., Thetford Mines, $99,000;
Canadian Automobile Corporation, Montreal, $600,000; Auto
Radiator and Body Co., Ltd., Montreal, $10,000.
INSURANCE LICENSES AND AGENCY NOTES
License has been issued to the Western Assurance Com-
pany, authorizing it to transact in Canada the business of
hail insurance in addition to the classes for which it is
already licensed.
The Mount Royal Assurance Co. has been licensed to
transact in the Dominion the business of automobile insur-
ance in addition to other classes for which authorization had
ah-eady been received.
Certificate of registration has been granted to the Motor
Union Insurance Co., Ltd., for the writing of fire, accident
and automobile insurance in the province of Manitoba.
La Sauvegarde Life Insurance Co. has also been granted
registration to transact life insurance in Manitoba.
The "Order of the Scottish Clans for the Province of
Manitoba," has ceased to transact new business in Manitoba.
W. E. Baldwin, manager of the Continental Insurance
Co., Fidelity-Phenix Fire Insurance Co., and Fidelity (Fire)
Underwriters announces the opening of a Quebec department
to handle the growing interests of these companies in the
province. The new department will be in charge of R.
deGranpre who has been appointed superintendent. It will
include the brokerage department and the French Montreal
department of the Continental, in charge of Harry Hall and
J. W. Provost respectively, and the French business of the
Fidelity-Phenix in Montreal, which will be looked after by
J. A. Marion. The Quebec field outside of Montreal will con-
tinue under the care of special agent J. G. Courteau.
C. C. Paull has been appointed accident manager of the
Norwich Union Insurance Society at Toronto, under the
general direction of John B. Laidlaw as manager for Can-
ada of all branches of the business. Mr. Paull has been in
charge of the accident and automobile departments for some
time.
A private bill has been introduced into the Alberta
legislature to incorporate the Premier Insurance Co., which
is authorized under the terms of the proposed act, to do a
general insurance business, including hail. The classes of
business to be written by the proposed new company include'
fire, wind, cyclone, tornado, inland marine, inland transporta-
tion, sprinkler leakage, hail, accident including vehicle and
public liability, sickness, guarantee, plate glass, burglary,
theft, steam boiler, and livestock. Capital stock of the com-
pany is to be $500,000. which may be increased to $1,000,000
and $12,000 must be subscribed before the general meeting
for the election of directors is called. The head office of the
company is to be in Calgary and the following men are the
incorporators: Arthur G. Ruby, Calgary; John L. Brown,
Didsbury; Parker R. Reed, Didsbury; Richard Ontkes, Cross-
field, and- David F. Ferrell, Jenner.
A new bond firm, with offices in La Banque Na-
tionale, Montreal, has been formed by P. A. Masson,
previously with Nesbitt, Thompson and Co., and L. J. Forget,
formerly with Versailles, Vidricaire, Boulais, Ltd., and H.
B. Robinson and Co. The firm will be known as Masson,.
Forget and Co., Ltd.
March 18, 1921
THE MONETARY TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto ' ' Solid as the Continent," Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
I92I promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
•SOLID AS THE CONTINENT'
HEAD OFFICE
TORONTO
important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE - WINNIPEG, MAN.
Assurances, New and Revived - - - 81.21 1, -147. 00
Premiums on same _ . . . 4.3.890.00
Assurances in Force - - - - 3,458.939.00
Total Premium Income - - - 109,586.03
Policy Reserves ... - - 211,497.00
Admitted Assets 296,430.62
Average Policy . . . - . 2,237.50
Collected in cash per 81,000 insurance in force 31 7,S
For particulars of a good agency apply to
ADAM REID, Managing Director Winnipeg.
Fifty-one Years of Steady Progress
One of the most brief yet impressive histories of Canadian financial in-
stitutions is contained in the annual record of The Mutual Life of Canada*
The current issue will be ready in a few days. A copy will be sent to you
on application. It contains fifty-one successive summaries, showing in
the parallel columns the increase from year to year of the company's
various receipts, expenditures, etc. No other document could better
convey the idea of solid, uniform achievement, and the momentum of the
advance is now greater than ever. The prospects are bright for a still
more rapid expansion within the next few years The assets of the com-
pany exceed $40.000 000. and the assurances in force have reached
$206,000 000. There is a gross surplus of more than five million dollars
over and above the amount necessary to guarantee all policies, so that
the position of the company, in spite of the strain of recent years, is one
of uncommon strength.
The Mutual Life Assurance Co. of Canada
Waterloo Ontario
CO-OPERATIVE SERVICE
T"0 Policyholders between the Company and the Agents is the secret of our
■'' success. livery representative is given the utmost assistance, but he must
look after our clients' interests. During the last "il years Tbe Conlincatal Life has
built an enviable reputation for prompt payment of claims.
Write for Hooldet. " Oor Betl AdTertiiert." Kor Manager's positions in
Ontario, iipply with refcicnLCS. stating experience, etc.. to S. S. WEAVER. Eait^ro
SaperiDtendeol, at Head Office.
THE CONTINENTAL LIFE INSURANCE CO.
Head Office TORONTO. ONTARIO
"For the man of vision."
Policies which may be adjusted to meet changed cir-
cumstances The " Canadian ' Series issued only by
The London Life Insurance Co.
HEAD OFFICE LONDON. CANADA
THE UNCERTAINTY
of life makes Insurance an imperative duty.
Everyone agrees — but many go no further. Take the
first step towards securing suitable and sufficient pro-
tection by requesting information concerning the
Great-West Policies. These Policies cost least, and
return the highest profits— they are clearly worded,
and sufficiently diverse to meet all needs.
Your enquiry for rates will be given prompt and cour-
teous attention. Do not delay any longer, write at once
giving date of birth to
THE GREAT- WEST LIFE ASSURANCE COMPANY
DEPT "F"
HEAD OFFICE \VINNIPEG
The Western Empire
Life Assurance Company
Head Office: 701 Somerset Building, Winnipeg, Man.
SASK.ATOON
Branch Offices
CALGARY EDMONTON VANCOUVER
Northwestern Mutual Fire Association
SEATTLE ■WASH.
flead Office for Canada, Hamilton, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NORMAN S. JONES. Manager R. J. MAHONV. Ass't Manager
Guardian Assurance Company
Limited, of London, England Established i»2l
Capital Subscribed $10,000,000
Capital Paid-up $ 5,000,000
Total Investments Exceed $40,000,000
Head Office for Canada, Guardian Building, Montreal
H. M LAMBERT. Manager
BE. HARDS. Assistant Manager
ARMSTRONG & DeWITT, Limited, General Agents
36 TORONTO STREET TORONTO
THE MONETARY TIMES
News of Municipal Finance
Administrator for Affairs of Transcona is Requested— Athabasca's Condition May Necessitate Inter-
vention of Provincial Government— Winnipeg and Niagara Falls Tax Rates are Higher— Br antford
Expenditures Have Greatly Increased Since 1914— South Vancouver Tax Rate Remains Stationary
Kitchener, Ont. — The tax rate for 1921 will remain at
30' 2 mills on the dollar, which is the same as last year.
Niagara Falls, Ont.— A tax rate for 1921 of 39 mills has
been struck by the council. In 1919 the rate was 29 mills.
Calgary. Alta. — A tax of 4 per cent, on the gross
revenues of its utilities will be imposed by the city. The
utilities affected are the electric light plant, the street rail-
way and the waterworks.
Walkerville, Ont. — Revenue derived last year from opera-
tion of the hydro-electric system, which is supplied with
power from Niagara, totalled $217,460, an increase over 1919
of more than 45 per cent. The surplus, according to the an-
nual report, is $37,028, or $5,000 more than during the pre-
vious 12 months.
Athabasca, Alta. — As a result of the deadlock between
the town council and bondholders, the council resigned in a
body last week, and is notifying the provincial government
accordingly. The difficulty between the Athabasca town
council and the bondholders leading to the council's resigna-
tion is the outcome of the financial troubles which the town
has been experiencing for some time past. The matter has
been under consideration by the government's commission
for the relief of municipalities in financial difficulties, and a
report of that commission, in which the Athabasca situation
is dealt with among others, has been submitted for consider-
ation in the legislature. It is generally believed now that
in view of the action taken by the town council some form
of government intervention will be necessary, possibly to the
extent of advancing funds with which to meet the town's
obligations.
South Vancouver, B.C. — No increase in the tax rate on
municipal property will be made this year, but 5 per cent,
more of the assessed value of improvements will be subject
to taxation. The rate of taxation for 1921 will be 41.40 mills
on improved land and 50 mills on wild land. Fifty per cent,
of the assessed value of improvements will be subject to
taxation as opposed to 45 per cent, last year. The total tax
levy will be $798,906, and in spite of the increase in the im-
provement tax, the total income will be $23,000 less than
1920. This is due to the fact that property formerly classed
as residential land has in many cases been assessed this
year as fai'm land, and consequently subject to a lower rate
of taxation.
Winnipeg, Man. — The civic finance committee has de-
cided that the tax levy for the year shall be at the rate of
30 mills on the dollar, on a rateable assessment for the year
amounting to $238,677,000, as compared with a rate of 22.5
mills last year. This will produce a revenue amounting to
$7,160,310. The total estimates passed for the year, how-
ever, call for $8,582,669. The balance will be financed by
these items: $148,834, the balance from the preceding year's
appropriation; $841,610, derivable from miscellaneous
revenue, and $431,915, which will be levied as the business
tax.
The monthly statement of the city's tax collection shows
that there were outstanding taxes on March 1 amounting
to $3,829,975. This is $497,941 less than was outstanding
on January 1. The tax collector reports that this year to
date 11.5 per cent, have been paid; last year the percentage
was 15.62.
Montreal, Que. — A total revenue to the city of $15,-
420.648 from realty taxes for the year 1920 is shown in a
report issued by J. A. Soulieres, chief accountant of the city
treasury office. Detailed figures contained in the report show
that the total real estate valuation of the city in 1920 was
$896,414,307. Deducting tax exemptions amounting to $229,-
454,863 from this sum, the sum of $666,959,444 remains as
the value of the taxable property.
The total revenue is derived from the following sources,
the report states:— Realty tax of $1.35, $8,673,260; special
tax of 5 per cent, on public service corporations, $289,297;
special tax of 1 per cent., $18,506; special tax of 4.4 per
cent., $292,660, tax of 2 per cent, for Maisonneuve, $468,635;
Catholic school tax, $1,976,139; Protestant school tax, $1,-
074,008; secular school tax, $2,332,081; snow removal tax,
$348,175; sidewalk vaults tax, $25,140.
Transcona, Man. — The provincial government will be
asked to name an administrator to take over the affairs of
the town. After the financial standing of the municipality
had been explained to a ratepayers' meeting, a recommenda-
tion of the town council to that effect was endorsed. Mayor
Lyon explained that outstanding taxes totalled $500,000. To
carry the town through to the end of the year $285,000 was
required. Money had been borrowed to pay teachers' salaries,
and town hall salaries and accounts were unpaid; $78,159
was owing the sinking fund and $31,521 to the trust account;
the tax collections in January and February totalled $4,485,
and only $16,000 was held to meet a $40,000 debenture debt
payment due this month.
Just a few weeks ago the town offered $48,000 6 per
cent. 20-year debentures for sale, but apparently was un-
able to receive any bids.
Regina, Sask. — In our issue of March 4, reference was
made to the city's indebtedness to the bank as the result of
overdrafts in four years past. The bank indebtedness repre-
sents advances made to finance current expenditures until
the taxes levied for the years in question can be collected.
The bank has asked that steps be taken to reduce the amount
by $226,500, or in other words, repay the advances which
have been longest outstanding. It is proposed to issue
treasury bills on the security of the taxes in arrears. The
reference in the article to last year's deficit was incorrect.
The amount of $218,000 represented the bank's advances for
1920 at December 31st. The immediate repayment of this
amount has not been requested, nor is it likely to be until
the tax sale procedure next fall establishes how much of the
1920 arrears will be collected during this year.
In a letter to The Monetary Times, Commissioner Thorn-
ton states: "I do not understand that the situation in Regina
differs materially from the policy of the banks with all
municipalities. I am .satisfied that as compared with other
municipalities the liabilities and tax arrears of this city will
not be found to be in an unfavorable light."
Brantford, Ont.— Estimated expenditure for 1921 is $1,-
223,878, of which amount $326,182 is for the purpose of meet-
ing interest, sinking fund and instalments on public debt,
$316,967 for educational purposes and the balance for general
service and miscellaneous purposes. The tax rate will be
39 mills on the dollar, and this has been struck after a re-
duction in the appropriations asked for by the various de-
partments. The expense of the government of the city has
increased very materially in the last few years as shown by
the following figures, which are exclusive of local imnrove-
ments, or debt charges in connection with public utilities: — •
1914. 1918. 1920. 1921.
Expenditures .$ 284,404 $ 438,227 $ 879,666 $ 994,120
Population . . . 20,711 26,454 30,549 32,780
Per capita ... 13.84'^r 16.59'^r 28.65'^r' 30.32%
Taxable assess-
ment $11,620,000 $17,510,000 $21,000,000 $25,068,000
Capital requirements for 1921, which have been author-
ized by the ratepayers, total $826,993.
March 18, 1921
THE MONETARY TIMES
45
y71tuii/ej)9s/
C.P.R. BUILDING
TORONTO
HousserWoodat'C^mpaw
INVESTMENT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
OSLER, HAMMOND & NANTON
WINNIPEG
Stock Brokers and Financial Agents
Insurance Mortgage Loans
Real Estate
11 1
PROVINCE OF ONTARIO
6% COUPON BONDS
Due February 1st, 1941
PRICE : 100 AND INTEREST
Harris, Forbes & Company
mcORPORATXD
C. P. R. Building 21 St. John Street
TORONTO MONTREAL
N. T. MacMillan Company
Ltmited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur Bldg., WINNIPEG, Canada
Members of Winnipeg Real Estate Exchange. Winnipeg Stock Exchange
c.
H.
BURGESS & CO.
Government and
Municipal Bonds
14
King Street East
Toronto
ACCOUNT BOOKS
I^oosE Leaf Ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets TORONTO
Exceptional —
- both for saffty of principal and surety of
return is this
7% Canadian Industrial Bond
with a bonus of C"ommon Stock payable in New
York (und.s.
Ask us for full particulars
R. M. HEFFERNAN & CO., Limited
I.WESTMEM BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
46
THE MONETARY TIMES
Volume 66.
Government and Municipal Bond Market
Edmonton Agreement is at Last Concluded at a Net Increase in Price of 1.34 on
the Original Deal— Manitoba Farm Loans Issue Increased to One Million Dollars —
British Columbia is Calling for Tenders — Securities are Payable Either in Canada or
United States at the Option of Purchaser — Sherbrooke Sells Large Block of Bonds
Last
week.
This week.
High.
Low.
High
Low.
98%
98 Vs
98%
981/8
97%
97
97%
97
99%
991/2
99%
991/4
981/2
96%
98
971/2
98%
98
981/2
98
96%
96
961/2
95%
9.5%
951/8
95%
94%
THERE was very little change in the government and
municipal bond market during the past week. Insti-
tutional buying is reported as being in good volume, while
the general demand continues favorable. Ontario bonds are
now selling above par on the street. The recent issue of St.
John school bonds is being offered to yield 5% per cent., which
is the lowest rate for that sort of security since the turn
in the market.
Victory bonds were not as active R'S they have been, and
in some cases there were fractional reactions. The follow-
ing figures illustrate the recent trend of prices: —
Control
price.
1922 98
1927 97
1937 98
192.3 98
1933 961/2
1924 97
1934 93
Ontario Losing Succession Dues
The province of Ontario, having lost $400,000 in succes-
sion dues last year by reason of estates being loaded up with
succession-free Ontario bonds, is trying to buy up outstand-
ing bonds of that char&cter. There are .$17,000,000 of these
bonds outstanding, and the province can only secure small
quantities at a time. To go after them hard would force
the price up.
The bonds were issued at various times in the days of
the Conservative regime. It is now realized that they were
a mistake, and the province will not repeat it. One million
and a half of 3% per cent, bonds fall due in five years, but
the other issues don't fall due for 15, 18, 20, 26 and 44 years,
the last issue being 41/2 per cent, inscribed stock. The pro-
vince is beginning the practice of providing sinking funds
to meet loans, and it is investing its sinking fund moneys in
these succession-free Ontario bonds whenever it gets the
ch&nce.
Edmonton Bond Deal Concluded
An agreement for the release of the city bonds held
under court order in Portland for some months on account
of the purchasers, Morris Bros., becoming bankrupt, has
been finally concluded. Negotiations have resulted in the
city obtaining a net price of 88.12, American funds, under
the thirty-day option given. The agreement provides for a
net increase of 1.34 on the price in the original desA.
When the matter was last before the city council, that
body authorized the mayor to enter into a new deal for the
sale of the unsold debentures in Portland at a minimum ad-
vance on the original price of one point. Shortly after the
council meeting, an offer of &n advance of 1.79 came through
to the mayor and he accepted it. In subsequent negotiations
between the city and the trustees, the latter claimed that no
authority was given for the 88.57 offer which the mayor first
accepted. On the part of the tiiistees it was contended that
the one point advance asked for by council would not be
exceeded.
Proceedings were then started by the city, and have
resulted in an offer of 1.34 over the price the bonds were
first sold for being made. This compromise offer has been
accepted by the city. Mayor Duggan stated that the trustees
are ready to take up a block of $150,000 of the bonds at
once, so these funds will be shipped to Vancouver as soon as
the agreement is made. The agreement provides that the
city will keep bonds to the value of $150,000 in Portland at
all times for a month when the option will expire. After
that date the securities are to be returnable to Edmonton
from Vancouver.
It is now almost three months since the bonds, amount-
ing to about $1,600,000, have been tied up, during which
time the city has been put to a gre&t deal of trouble and
expense. The increase in price, which will net about $23,000
more than the old sale, will reimburse the city to some ex-
tent, but then there is the question of exchange. It will
be remembered that the bond issue was made for the pur-
pose of redeeming securities falling due in New York, and
the redemption was effected last January when exchange
stood at about 17 per cent. The rate is now less than 15 per
cent., so that the city stands to lose the difference. It is not
possible to say how the city will fare in this regard, however,
owing to the fact that payments will be made at varying
periods over the thirty days and at different rates of exchange.
Coining Offerings
The following is a list of debentures offered for s&le,
particulars of which have been given in this or previous
issues: —
Tenders
close.
Mar. 19
Mar. 20
Mar. 21
Mar. 21
Mar. 21
Mar. 21
Mar. 23
M&r. 23
Mar. 26
Mar. 30
Mar. 31
Borrower.
EUice R.M., Man. . .
St. Lambert, Que. .
Three Rivers, Que.
Montreal West, Que
Quebec C.S., Que. . .
British Columbia .
Toronto Sep. Schools,
Ont
Albert R.M., Man. . .
Drumheller, Alta. . . .
Joliette, Que
Pipestone R.M., Man
Belleville, Ont
Caledonia Twp., Ont..
Amount. Rate%.
$ 49,000 6
500,000
250,000
282,000
700,000
2,000,000
6
6
51/2
350,000
50,000
28,000
47,000
80,000
90,000
50,192
Maturity.
oO-years
30-years
Various
Optional
Optional
20-years
30-years
20-instal.
10-years
20-years
20-instal.
Sydney Mines, N.S. — It is understood that the munici-
pality has $65,000 6 per cent, debentures for sale. D. C.
MacDonald is the clerk.
Kerrisdale, B.C. — Unsold school bond issues of 1913 for
$73,000 and of 1919 for $83,000 are to be placed on the mar-
ket immediately, according to a decision of the municipal
council.
Toronto, Ont. — Tenders will be received until March 23,
1921, on $350,000 6 per cent. 20-ye&r sinking fund debentures
issued by the Toronto Separate School Board. James
O'Hagan, 477 Jarvis St.
Albert R.M., Man. — Tenders will be received until March
23, 1921, for $50,000 6 per cent. 30-year good roads coupon
debentures, dated January 1, 1921, and guaranteed by the
province of Manitoba. R. W. James, secretary-treasurer,
Tilston, Man.
British Columbia. — The province is calling for tenders
until March 21, 1921, on $2,000,000 6 per cent, bonds. Alter-
native offers are asked for 20-year securities payable in
Canada only, and 5 or 10-year securities payable in Canada
and the United States.
Joliette, Que. — Tenders will be received until 8 p.m.,
March 30, 1921, for $47,000 6 per 10-year bonds maturing
March 18, 1921
THE MONETARY TIMES
47
From
Our March Bond List
These are three of the attractive offerings
contained in our March hst.
Rate
6%. ,
6%.
City of Toronto
(Choice of Thirteen Maturities)
Maturity Price
1 Mar., 1928-40.... 100 ..
City of Winnipeg
1 Feb., 1941.... 99.50 ..
Yield
.6.00";
.6.05%
Province of Alberta
6% 15 Jan.. 1936 99 6.10',.
Write for this List. It will interest you.
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
.v^wmwAtM^^mmwm
^1
^§h
wnrw^f'FwwsEBEm
IMVtSTHEKT- SlRVlCt^
Why New
Money For
Pulp and Paper-
Companies ?
In the current number of Investment Items
convincing reasons are given why the funda-
mental soundness of the Canadian pulp and
paper industry warrants the invtstment of
new capital.
Every holder of industrial securities of any
description should read Invtstment Items each
month, and this edition in particular
A letter will add your name to our mailing
list.
Royal Securities
^ ^CORPORATION
L. I
TORONTO
WINNIPEG
M I T E D
.MONTKEAL
HALIFAX ST. JOHN. N.B.
VANCOUVER NEW YORK
LONDON. Eng.
■^^•y^-s^T. -^^^ w vw w •v^^fr^^'^/'v^y^^'w^^/^^'^^^^'^^'^^^/^^r^/^'^
W. L. McKlNNON
OHAN M. PETTKS
We Buy an
d Sell
VICTORY
BONDS
W. L.
at Current
Prices
McKINNON & CO.
Governmenf ani Mi
inicipal Bonds
McKINNON
BUILDING
-:• TORONTO
Telephone Ade
aide 3870
Increase the Return
on Your Investments
To-day the cost of capital is so great that first-Krade
corporations have to pay very hiyh rates for money, and.
as a result, their bonds have to yield a very hiRh return.
If you have any money at your command you can loan
it at these remunerative rates by purchasing! one or more
of these bonds.
Send for our circular describing Howard
Smith Put>cr Mills bonds, which are
heinti o.Hered at a X'cry attractive Price.
R, A.. Daly & Co.
BANK OK TORONTO BUILDING
TORONTO
$50,000
Town of Walkerville
ONTARIO
6% Bonds
Maturities:
December 14, 1922
to
December 14, 1935
PRICE
TO YIELD
6i
W. A. MACKENZIE & CO., Limited
Covcrnmeni and Municipal Bonds
Corporation Securities
42 KING STREET WEST
TORONTO CANADA
48
THE MONETARY TIMES
Volume 66.
November 1, 1930. Offer must be accompanied by a marked
cheque for 1 per cent, on loan, and must specify whether
the offer does or does not include accrued interest. A. L.
Marsolais, secretary-treasurer.
Three Rivers, Que.— Tenders on the $250,000 6 per cent,
school debentures of the city will be received until 8 p.m.,
March 21, 1921, a.nd not on March 15, as stated in these
columns last week. The securities mature serially from No-
vember 1, 1921, to 1950, are in denominations of $100 and
$500 and are dated May 1, 1920. Arthur Nobert, treasurer. '
Ford City, Ont. — A short time ago the municipality called
for bids on $89,000 6V2 per cent. 15-instalment debentures,
but only one offer was received. The securities will again
be pL-K-ed on the market in the near future. J. F. Foster is
treasurer of the town.
Bond Sales
Halifax County, N.S. — Easteni Securities Co., Ltd., have
purchased $15,000 6 per cent. 20-year debentures, maturing
December 1, 1940, at 98.63, which is on about a 6.12 per
cent, basis.
Perth, Ont. — The town has disposed of to W. L. McKin-
non and Co. $83,500 6 per cent. 30-instalment debentures.
The deal was concluded privately.
Grey R.M., Man. — W. L. McKinnon and Co. have pur-
chased $25,000 5y2 per cent. 29-instalment good roads de-
bentures, guaranteed by the province, at a price of 91.10,
which is on about a 6.38 per cent, basis.
St. John, N.B.— The bid of the Mahon Bond Corp., Ltd.,
for 99.08, which was the second highest, was omitted from
the list of tenders on the $54,000 school bonds given in these
columns last week.
Port Colborne, Ont. — Harris, Forbes and Co. have been
awarded $19,500 6 per cent. 20-instalment debentures at
96.279, which is about a G.47 per cent, b&sis. Tenders were
as follows: —
Harris, Forbes and Co. Inc 96.279
C. H. Burgess and Co 96.08
A. E. Ames and Co 95.69
Dominion Securities Corp 95.57
Wood, Gundy and Co 95.37
R. C. Matthews and Co 94.50
Manitoba. — The $500,000 5 per cent. 5-year issue of farm
loan bonds purchased by the National City Co., Ltd., which
was mentioned in these columns last week, was increased to
$1,000,000. The securities were sold in New York to yield
the investor 7% per cent.
Bridgewater. N.S. — W. F. Mahon and Co. and the Royal
Securities Corp. have purchased $55,000 6 per cent. 30-year
bonds, maturing August 1, 1950, at a price of 97, which is on
about a 6.20 per cent, basis. The same houses have also
bought $10,000 5 per cent, bonds, due June 1, 1961, at 81,
which is on about a 6.30 per cent, basis.
Nova Scotia. — $20,000 6 per cent, provincial highway
notes, maturing March 1, 1928, have been purchased by the
Eastern Securities Co., Ltd., at 98.63, which would be on
about a 6.25 per cent, basis. Tenders were as follows: —
Eastern Securities Co., Ltd 98.63
Royal Securities Corp 98.56
J. C. Mackintosh and Co 98.53
W. F. Mahon a.nd Co 98.09
Saskatchewan. — The following is a list of authoriza-
tions granted by the Local Government Board from Febru-
ary 27 to March 5, 1921:—
Schools — Clover Bar, $3,000 8 per cent. 10-years annuity;
Pioneer, $7,000 8 per cent. 20-years annuity; Versailles, $5,-
941 8 per cent. 15-years a-nnuity; Iris, $6,041 8 per cent. 15-
years annuity; Glen Ellen, $4,500 8 per cent. 10-years annuity;
Wheat Centre, $2,000 8 per cent. 5-years annuity.
Village of Marquis, $1,500 8 per cent. 10-instalments,
for water supply.
Saskatchewan. — The following is a list of debentures
reported sold by the Local Government Board from February
27 to March 5, 1921:—
8 per cent. 10-year schools — Barton, $1,400; Crown Life
Insurance Co. Sandwell, $4,000, Westlea, $4,200, Scotsguard,
$2,800; Waterman- Waterbury Mfg. Co. Candiac, $5,000;
Nay and James. North Regina, $2,500; C. C. Cross and Co.,
Regina.
Yeomans R.T., $700 8 per cent. 15-years; Na^y and James.
Marriott, $8,698 7 per cent. 15-years; H. J. Birkett and
Co.
Village of Borden, $2,000 8 per cent. 10-years, locally.
Sherbrooke. Que. — Rene T. Leclerc has been awarded the
$513,000 6 per cent. 10-year bonds of the city at 98.90, which
is on about a 6.14 per cent, basis. The tenders were as
follows: —
Rene T. Leclerc 98.90
Credit-Canadien, Inc 98.695
Royal Securities Corp., Ltd 98.67
Masson and Forget 98.573
Versailles, Vidricaire and Boulais, Ltd 98.17
L. G. Beaubien and Co 98
A. E. Ames and Co 97.91
Beausoleil, Ltd 97.80
Dominion Securities Corporation, Ltd 97.35
Provincial Securities, Ltd 97.31
Hanson Bros 97.25
National City Co 97.23
Nesbitt, Thompson and Co 97.175
Sandwich, Ont. — The town has sold to Wood, Gundy and
Co. $228,333 6 per cent, debentures, maturing in 10, 15 and
25-instalments, at a price of 95.17, which is on about a 6.70
per cent, basis.
Montreal, Que. — An issue of $1,500,000 6 per cent, serial
bonds of the Protestant School Commission, maturing from
1925 to 1950, has been awarded to Wood, Gundy and Co., and
A. E. Ames and Co., at a price of 97.884, which is on about
a 6.20 per cent, basis. Other bids were: —
United Financial Corp., Ltd 97.79
Dominion Securities Corp., National City Co., Ltd.,
Harris, Forbes and Co., Inc., and Hanson Bros. 97.637
Hew R. Wood and Co., and A. Jai-vis and Co. bid 93.538
for $750,000 of the issue.
COMMERCIAL LIFE ASSURANCE COMPANY
As a company still in its organization stage, the Com-
mercial Life Assurance Company made a creditable show-
ing in 1920, under the direction of J. W. Glenwright, who is
managing director. During the year applications were re--
ceived for $416,038 of insurance, of which $405,038 was ac-
cej)ted and issued, making a total business in force of $723,-
974, an increase of 81 per cent, over 1919. The premium
income amounted to $22,586, as compared with $9,400 in
1919, an advance of 140 per cent. Death claims were $3,-
182, while in 1919 the result was nil. Total expenses were
$36,451, as compared with $24,001 in the previous year, and
total income was $53,444, against $35,077 in 1919.
The balance sheet of the company shows total assets of
$109,699, of which $96,006 is in the nature of government
and municipal bonds, mortgages on real estate and cash.
The net reserve on policies in force is $29,763, as compared
with $17,731 in the previous year, while the investment re-
serve is $2,000. Surplus to policyholders increased from
$68,248 in 1919 to $77,414.
In his report, Mr. Glenwright points out that the com-
pany has over $300 in assets for every $100 of liabilities,
and that interest earnings of the company at $6,962 show
an increase of 108 per cent, for the year. With regard to
the expenses he says that the greatest possible cai'e has
been exercised, but the expansion in business will undoubt-
edly cause an increase in this feature.
March 18, 1921
THE MONETARY TIMES
49
$25,000
CITY OF HALIFAX, N.S.
BONDS
Due /u/lj hi. 1953
Denominations, $1,000
Principal and semi-annual interest pay-
able at Toronto. Montreal, Halifax.
Price : 92.85 and accrued interest
YIELDING 6%
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX, N.S.
Western Municipal & School
Debentures
TO YIELD * 2
6%
71%
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
NVITED
UNION TRUST BUILDING
WINNIPEG
IVe Offe
$250,000
Dominion
of
Canada
Long Term
Bonds
Yielding
Over
6%
The best and most marketable
Security obtainable in Canada
5i o Victory Bonds, Due 1934
Price on application
The (ana da Trust Co^^\pany
14 King St. East :: Toronto
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches-SASKATOON AND CALdAHV.
Canadian Manaflers
iiENT Corporation oi- Canada. Ltd.
London omce : 4 Great Winchester St.. EC.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank Bldg., Edmonton, Alta.
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
C.ible Address, Topoco. Wustuin In. anil A.I! C , .Sth Edition
CALGARY, CANADA
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C. H MACAILAV
J. P, .N'ICOLLS. \ot:iry Public.
LOUGHEED & TAYLOR, Limited
INVESTMENT SECURITIES
210 Eighth Avenue West
CALGARY
ALBERTA
P. M. LIDDELL & COMPANY
Investment Bankers. Fiscal Agents
Insurance Brokers
826-7-8 ROGERS BUILDING, VANCOUVER, B.C.
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
I. A. WKST.MAN
Dr. ,r. W. .\1AHAN
President
.\l.n
X
Waghorn Gwynn & Co., Limited
Stock and Bond Brokers
Financial Insurance, and Keal Estate Agents
VANCOUVER
50
THE MONETARY TIMES
Volume 66.
CORPORATION SECURITIES MARKET
Urgent Selling «f Stocks Has Abated, but the Underlying
Conditions are Lndianged — Spanish River Hond Issue
Authorized — Canadian Pacific Railway Will Uo Financing
this Year, but Not for the Present
WHILE the abatement of the urgent selling movement
this week gave the Canadian stock markets a much
steadier appearance, there was no decided change in under-
lying conditions, and, generally, the situation is much the
same as it has been for some weeks past. There is still the
absence of that sentiment which is needed for a constructive
mai'ket, but the bear element seems less prominent. For
some time the stock exchanges have been discounting un-
favorable developments, with due consideration for the
future, until it appears that there is very little more for the
bears to work upon. Now and again, however, weakness in
a cei-tain stock is unearthed, and the whole market, in the
sensitive condition that it is, responds readily to the reports,
whether authoritative or otherwise. The only event which
will waiTant a rise of a permanent nature will be a general
and substantial improvement in the business and financial
situation, and in the meantime prices will continue to follow
their irregular course.
Trading in listed stocks in Montreal for the week ended
March 16 resulted in the turnover of .54,805 shares, as com-
pared with 62,456 previously, while in Toronto the figure
was 20,088, as against 15,941. Bonds changed hands on the
Montreal exchange to the extent of $1,431,200, compared
wih $1,388,750 a week ago, while the turnover in Toronto
was $1,503,110, as against $1,215,2.50 previously.
Although bond trading showed a slight increase, this
section of the market is not so active as formerly, while in
some cases there were fractional declines. The large volume
of new financing has no doubt been effective in this regard.
According to repoi-ts, the recent offerings of pulp and paper
securities are being well absorbed.
Approve Bond Issues
Shareholders of the Spanish River Pulp and Paper Com-
pany, at a special meeting held in Toronto last week, unani-
mously approved a by-law of the company authorizing the
new general bond issue, whereby the directors are authorized
to borrow an amount not exceeding an aggregate of $20,-
000,000, to be secured by an issue of general mortgage bonds
of the company. A pi-eliminary issue of $3,000,000 was re-
cently disposed of by the company, the money to be used
for repaying part of the capital expended on the company's
properties during the past few years. The circular addressed
to shareholders stated that since July, 1915, over $7,000,000
had been expended in enlarging and improving the com-
pany's properties, as a result of which the output has been
increased by 110,000 tons per annum, making a total capa-
city of 2.'i0,000 tons, and resulting in the earnings for the six
months ending December 31 last available for dividends,
being in excess of $2,500,000. The working cajiital has also
been increased to over $7,000,000.
At a special meeting the shareholders of Ames-Holden-
McCready, Ltd., this week, authorized the issue of $2,000,000
7 per cent, second refunding mortgage bonds. It is under-
stood that the greater portion of the $2,000,000 has already
been sold.
The Canada Land Irrigation Company, which is an
amalgamation of the Alberta Land Company, of Southei-n
Alberta, and the Canada Wheat Lands Company, must have
more capital or go into liquidation, officials of the company
have announced in London, England, in extending an invi-
tation to shareholders to subscribe £300,000 of 7 per cent,
prior lien debentures at par. The debentures are to be re-
deemable in 1929 and 1933 at a premium of 100 per cent.
According to reports current in New York, the Canadian
Pacific Railway will probably do some financing some time
during the current year, partly to take care of expansion
planned. It is understood, however, that the management
feels there is no special urgency about issuance of new
securities, as cash and working capital are ample for ordi-
nary purposes. According to Vice-President Coleman, the
officials of the company have agreed that, while important
extensions to the system must be made, particularly in the
west, the present situation calls for conservative action.
The £2,000,000 5 per cent. 7-year notes of the Grand
Trunk Railway System, which fell due in London on March 2
last, were retired.
Riordon Stock Adjustment
While full details of the plans have not yet been worked
cut, the capital stock of the Riordon Pulp' and Paper Co.,
Ltd., will shortly be adjusted. Directors of the Riordon Co.,
Ltd., which is the operating company, are giving consideration
to this. At the time of the big merger last summer, it was
arranged that the Riordon Pulp and Paper Co., Ltd., would
continue only as a holding company of the shares which it
received from the new Riordon Co., Ltd., in exchange for
all its assets. No distribution was made, and consequently
the position of the company has occasioned considei'able
market confusion, which will be cleared up by the proposed
adjustment.
At the present time the Riordon Pulp and Paper Co.,
Ltd.. retains in its treasury $9,000,000 of the 7 per cent,
second preferred and $12,000,000 of the common stocks of
the Riordon Co., against its own $6,000,000 of common stock
outstanding. This is in the proportion of 1% shares of pre-
ferred and 2 shares of Riordon Co. common against 1 share
of Riordon Pulp and Paper common. If the present plans
o" the board mature, as it seems likely they will at an early
<late, holders of old Riordon common will receive two shares
of the new common for every one of the present securities
held, the 7 per cent, preferred being retained, as at present,
in the treasury of the holding concern to maintain the 10
per cent, dividend now being paid. In addition to the $6,-
000,000 par value common stock outstanding, the old Riordoh
company has $1,500,000 in 7 per cent, preferred issued,
against which there is held in the treasury a similar amount
of 8 per cent, first preferred of the new Riordon company.
It is proposed that the former be made exchangeable for the
latter, holders of the present securities benefiting through
the change to the extent of receiving an 8 per cent, stock
for their present holdings of the 7 per cent, shares.
UNLISTED SECURITIES
shed to The Monetary Times by A. J. Patti;
(Weekended Mar. 16th, 1921. 1
. Jr.. Si Co., Toront
Aita. Pac. Grain. ...com
" " " ....pref,
American Sales Book.6'5
Black Lake bonds
Brandr'm-H'ndes'n.com
British Amer. Assurance
Burns, p. 1st Mtee. 6's..
Can. Machin'ry pf .xd 3i%
6's
Canada Mortgage.
Can. Oil com
Can. Westinghouse
Can. Woollens com
Cockshutt Plow com
•■ 7% pref,
CollingwoodShipb'dg.B's
Crown Life Insurance
Cuban Can. Sugar, co
Bid
Ask
ISO
78
84
90
40
53
58
8
12
91
99
45
,54
80
67
72
67
104
US
39
9
61.50
62.25
89
65
7.25
9.23
Davies William
Dom. Foun. & Steel. c
Pom. Iron &Steel5's 1939
Dom. Power com
pfd,
DrydenPulp com,
DunlopTire pref.
Eastern Theatres. . .com.
Goodyear Tire.. ..7% pfd,
Gunns. Limited pref.
Harris Abattoir 6's
Home BankXDlJX
Imperial Oil
International .Milling.6's
King Edward Hotel.. .7's.
Lake Superior Paper. 6's.
Loew's, Montreal ..com.
Loew'sOttawa com.
Manufacturers Life
Massey-Harris
Mattagami Pulp. -.pref.
Mercantile Trust
Merchants Fire
Mexican Nor. Power. .5's
Morrow Screw 6's
Murray. Kay ,- pfd.
National Life
Neilson. Wm B's.
North American Pulp . . .
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Riordon . , com. (new stk.)
..pfd.
R.Simpson pfd.
R'b'ts'n.P L.Screw.com.
Southern Can. Pow.com.
Southern Can. Pow..6's.
St. Lawrence Sugar. 6's.
Sterling Bank
Sterling Coal com
Toronto Paper 6's,
Toronto Power. S's (1924)
Trust & Guar
United Ci§arStorescom
■ pref
Western Assurance
WhalenPulp com
■■ 7% deb.
March 18, 1921
THE MONETARY TIMES
51
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Yean
to ykU
7 io7yi<ro
We Specially Recommend these Bonds as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto BIdg. Royal Bank Chambers
EDMONTON CALGARY
The Bond House of British Columbia
WE ARE :N THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
DIVIDEND NOTICE
(Dividend No. 148)
Notice is hereby given that a quarterly divi-
dend of tTvo and one-half per cent. (2i%) for
three months ending March 31st, 1921, (be-
ing at the rate of len per cent, per annum), has
been declared upon the Capital Stock of
this Institution, and the same will be payable
at the offices of the Company, Toronto, on
and after Friday, the 1st day of April, 1921.
The Transfer Books will be closed from the
16th to the 3 1 St of March, both days
inclusive.
By Order of the Board,
G. A. MORROW,
Managing Director.
CENTRAL CANADA
LOAN AND SAVINGS COMPANY
King and Victoria Sts. Toronto
EST. 1884 JTI
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ANNUAL REPORT
The Saskatchewan Farmers' Mutual Fire Insurance Co.
SASKATOON, SASK.
Secretary-Manager, JOHN CAMERON.
President, JOHN EVANS.
Vice-President, H. R. EARL.
Financial Statement
Receipts.
Cash on hand, January 1st, 1920
Assessments
Premiums
Realization and interest on investments . . .
Head Office fees and commissions
Building rentals
Miscellaneous
Assets.
Cash balance
.\ssessnients outstanding
Balance due from agents
Bills receivable
Accrued interest on investments
Returned cheques
Investments
Building, furniture, etc
Net residue of premium notes . .
for the year ended December Slst, 1920
Expenditures.
f 81.20 Bank overdraft, January 1st, 1920 $ 1,385.06
81,454.65 General expense 56,558.71
31,940.55 Refunds and rebates 3,135.48
24,407.68 Building maintenance 1,904.91
3,383.42 Re-insurance 3,823.37
2,665.00 Bank loans repaid 5,000.00
106.35 Loss claims 62,785.62
Cash balance 6,873.70
>141,466.85
$ 6,873.70
47,045.83
1,088.28
1,501.39
896.24
254.25
47,860.33
22,312.31
377,616.68
$505,449.01
Liabilities.
Losses under adjustment, etc.
Accounts payable
Assessments in advance
Suspense account
Net reserve for cash premiums.
$141,466.85
$ 1,065.00
2,285.51
1,305.89
6.58
49,646.42
$ 54,309.40
Balance of assets over liabilities 451,139.61
$505,449.01
Insurance written during 1920 $15,773,842.00
Net increase of business in force 6.293. 196.00
Insurance in force, December 31st, 1920 37.651.251.00
The Largest and Strongest Farmers' Mutual Fire Insurance Company in Saskatchewan
485
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THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
Abitibi P.&P...
Asbestos Corp..
Ames-Holden pfd
Atlantic Sugar
Bell Telephone
Braxiliun T.L. & Powei
B.C. Fish
Brompton Pulp* P...
Canada Cement
•■ ...pfd
Can. Con
Canadian Cottons, pfd.
Canadian Car pfd.
Canadian Gen. Elec...
Carriage Fact
Can. Rubber pfd
Can. Steamship
•■ ■• pfd
■• ■• deb.
•' " .... Vot. Trust
Con. Mining* Smel...
Del. Rys
Dom. C^nners
" pfd
Dominion Bridge
Dom. Iron-. pfd
Don
1 Gla
Dom. Steel Corp.
Dominion Textile...
.pfd.
Goodv
.pfd
pfd.
Howard Smith
•' ....pfd.
Hillcrest pfd
Illinois Tract
Kaministiqua
Lake of the Woods..
pfd.
Laurentide
LyallCons
Macdonald Co
Alackay pfd.
Montreal Power
Tram
• ..Deb.
Telegraph...
National Breweries
Ogilvie Flour Mills ....
pfd.
■ Bn
pfd.
Quebec Ry. L. H.&P.
Riordan Pulp & P
•■ ..pfd.
St. Lawrence Fl. Mills
Shawinigan W.&P...
She
i-VVil
Spanish River.
.pfd.
■■ Div.Vou.
Steel Co. of Canada.
■• ■' pfd.
Toronto Ry
Wayasamack P. &P.
Windsor Hotel
Winnipeg Ry
Wooils Mfg. Co.. -pfd.
Ranks
Commerce
Hochelaga
Imperial
Merchants
Molsons
Montreal
Nationale
Nova Scotia
Royal
Standard
Toronto
Union
Bonds
Asbestos Corp
Bell Telephone Co..
Can- Cement
Can. Converters
Can. Cottons
Cedars Rapids Mfg
City Mont.Dec.S's, 1922
'■ MayS's, 1923
" Sept.6's..l923
Dom. Can.W.Loan.l92S
1931
1937
Victory Bo
ids. 1924.
1934.
1922.
1927.
1937.
1923.
1933.
Sales Open High Low
SO
'2066
IIIOO
l.SdO
11400
:(.=ioo
320(1
9422
11305
77173
54.'i62
8K4HS
.S314S
9762
.10225
75775
93S3S
94i
925
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793 j 83j
MnJiTttKAlj-Continued.
IConds
Dom . Cottons
Dom. Coal
Dom. Iron
Dom. Steel
Dom. Textile
Lake of Woods
Lyall
Mont. Power
National Breweries .
Ogilvie Flour
■ Br
Quebec Ry.L.H.&P..
Scotia
Sherwin-Williams....
West Kootenay
Wabasso Cotton j
Wayagamack P. & P. . . 1 5300
Winnipeg Elec
High Low Close
TORONTO— Week Ended Mar. I6tli.
Stocks
ic Sugar
Bell Telephone
Brazilian Traction.
B.C. Fish
Burt, F. N.
Canner
Canadii
I Pacific R.
. Ele
.pfd.
^pfd.
' pfd.
pfd.'
Sales Open High Low | Close
pfd.!
Canada Steamship 1
pfd.i
Con. Gas i
Coniagas
Crows Nest
Dome I
Dom. Tel I
Dom. Steel Corp
Duluth I
Ford Motor
La Rose
Loco pfd. I
Mackay Companies. ...
•■ ...pfd.
Maple Leaf |
•■ pfd.;
N. S. Steel pfd.
N.S Car
pfd.
Porto Rico
■• pfd.
Pac. Burt pfd.
Prov. Paper
■■ pfd.>
Quebec R.L.H. & P |
Riordon i
Rogei
i-s pfd.i
book pfd. I
er-Massey
. .pfd.i
Spanish River.
Steel Corp
Steel Company.
Toronto Ry
Twin City
Winnipeg Elec.
W.C. Flour
IC.ink^
Toronto
Union
Ln.iu and Trust
Col.Inv
Can. Perm.
Ham. Prbv
Nat. Trust
Toronto Gen. Trusts. .
i;onds
Elec. Dev
Loco
Ogilvie
3000
1000
1000
6100
1000
1000
67i
139d
2.05
664
136*
2.00
TnnOfiTO— Continued
War Loans
Dom. Can.W.Loan. 1925
1931
1937
Victory Loan 1922
1923
1927
1937
1933
1924
1934
Sales
Open
High
Low
94\
22200
94t
94i
25100
92S
92}
92* ,
441200
97i
97|
97j :
53800
98i
98l
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195350
974
98
97*
87250
97i
973
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164650
99J
993
99}
412210
98
98*
98
102250
96i
9Hi
95i ,
253350
95i
9Si5
94ij 1
WINNIPECi— Week ended Mnr. IJIIi.
Victory Loan 1922..
■ 1923..
■ 1924..
■■ 1927..
■■ 1937..
" 1933..
" 1934.
War Loan 1925 . . . .
■• 1931 ....
'• 1937...
Gt. West Perm
Standard Tr
nk.
ers
Sales
Open
High
Low I
96.S0
9Si
9Si
98*
13500
975
98
973'
1800
96*
96
96*
5300
97*
97
99I
4300
99S
99
10050
98i
98:
981!
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93
200
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94
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92
92+
92
1900
971
97J
97i
68
110
no
no
2
157
157
157
NEW YOKK-Week ended Alar. IStli.
Canadian Pacific
Canada Southern
Nova Scotia S. &Coal.
Granby Consolidated - .
5%
1921
■■ 5*% 1921
" 57o 1926
•■ 5*% 1929
■ 5% 1931
) Silver .Mining.
54000:
4.5000» .
28000!.
73000!.
39000'.
4001
High
lUi
i 992
.1 99J
Low
llOl
995
99;
90*
LO.^iUON, Eug.— Week ended Felt. 2fitli.
IkOT*!. a >lnii.
Alberta 4*96 ■
^.C. 4*% .
Canada. .3*% 1930-50... .
3*";, 1909-34'.
j5;, I94n-iai
Calgarj- 4*". 0. h
Edmonton 5*-',. luis. _',i s.i
" 4*%debs';f2-,S2l
Nfld.3*%bds
Manitoba 4% bds
Montreal 4*% Reg
3%
5%deb
Quebec 4%. 18S8
■' 4j% Reg
•■ 3% bds
Saskatoon 4^% deb. . . .
S. Vancouver 5% cons.
Toronto 4% deb
4*% 1948
Victoria 3»% 1921-6 . . .
3*% 1923
■-• 5J%cons.
Vancouver4i% cons.'53
Winnipeg 4*% 1943-63.
4% cons. 1940
Kall^rays
Can. Nor. 4%deb. I939| 55*
■■ '■ Ont.3i%db.'38 .
" Pac. 4% deb..
Can. P-ac -
■■ 4% deb. .
•■ 4% pfd. .
G.T.P. Br. 4% bd 1939.1.
G.T.P.3%bds |.
G.T. P.4%1955 |.
Gr. Trunk.. .. 4'?iguar.| 603
Gr.Trunk5% l.st. pfd..
Gr. Trunk 5% 2nd pfd < 33
Gr. Trunk 4% 3rd pfd 12*
nk 4% (
High Low Close
92}
m
73.i
72
48§
75i
664
73
67^
84*
92J
93}
Gr. Tr. West.
Ont. & Quebec .";■■
P. Gt. East. 45 ,'
Ind.. Fill.. I
Can. Cement "/
deb. .
754
773
Ca
. Ca.
Can. West Lumber S%\.
Calgary Power 5% bds.;.
Gen. Elec
Pow. 4*"^^ ,gr. deb. .
. Bk. of Commerce .
Bank Montreal
1161
32i
I2i
62i
116j
March 18, 1921
THE MONETARY TIMES
DIVIDENDS AND NOTICES
<^
TENDERS FOK I'l I.iMVOOU AM) TIMBER LIMIT
Tenders will be received by the undersigned up to and
including the 4th day of July, 1921, for the right to cut pulp-
wood and pine timber on a certain area situated in the
vicinity of Long Lake, District of Thunder Bay.
Tenderers shall state the amount per cord on pulpwood,
and per thousand feet, board measure, on pine, that they
are prepared to pay as a bonus in addition to dues of 80
cents per cord for spruce and 40 cents -per cord for other
pulpwoods, and $2.50 per thousand feet, board measure, for
pine, or such other rates as may from time to time be fixed
by the Lioutenant-Governor-in-Council, for the right to oper-
ate a pulp mill and a paper mill on or near the area re-
ferred to.
The successful tenderer shall be required to erect a
mill or mills on or near the territory, and to manufacture
the wood into pulp and paper in the Province of Ontario.
Parties making tender will be required to deposit with
their tender a marked cheque, payable to the Honourable
the Treasurer of the Province of Ontario, for fifty thousand
dollars ($.'50,000), which amount will be forfeited in the
event of the successful tenderer not entering into agreement
to carry out conditions, etc.
The said $.50,000 shall remain on deposit until the pulp
mill, as provided by terms and conditions of sale, is erected
and in operation. Any timber cut in the meantime shall be
subject to payment of dues and bonus as accounts for same
. are rendered. After the said pulp mill is erected and in
operation, the deposit of $50,000 may be applied on account
of bonus dues as they accrue, but the regulation dues, as
mentioned above, shall be >paid in the usual manner as re-
turns for cutting of wood and timber are received and ac-
counts rendered.
The highest or any tender not necessarily accepted.
For particulars as to description of territory, capital to
be invested, etc., apply to the undersigned.
All tenders should be enclosed in sealed envelope and
marked plainly on outside, "Teniier for Long Lake Pulp anil
Timber Limit."
BENIAH BOWMAN,
Minister of Lands and Forests.
Toronto, January 24th, 1921.
N.B. — No unauthorized publication of this notice will be
paid for. 493
TENDERS FOR PULPWOOD AND TIMBER LIMIT
Tenders will be received by the undersigned up to and
including the 15th day of June, 1921, for the right to cut pulp-
wood and pine timber on a certain area situated on the Na-
gagami River and other territory adjacent thereto, in the
District of .\lgoma.
Tenderers shall state the amount per cord on pulpwood,
and per thousand feet, board measure, on pine, that they
are prepared to pay as a bonus in addition to dues of 80
cents per cord for spruce and 40 cents per cord for other
pulpwoods, and $2.50 per thousand feet, board measure, for
pine, or such other rates as may from time to time be fixed
by the Lieutenant-Governor-in-Council. for the right to oper-
ate a pulp mill and a paper mill on or near the area re-
ferred to.
The successful tenderer shall be required to erect a
mill or mills on or near the territory, and to manufacture
the wood into pulp and paper in the Province of Ontario.
Parties making tender will be required to deposit with
their tender a marked cheque, payable to the Honourable
the Treasurer of the Province of Ontario, for fifty thousand
dollars ($50,000), which amount will be forfeited in the
event of the successful tenderer not entering into agreement
to carry out conditions, etc.
The said $50,000 shall remain on deposit until the pulp
mill, as provided by terms and conditions of sale, is erected
and in operation. Any timber cut in the meantime shall be
subject to payment of dues and bonus as accounts for same
are rendered. After the said pulp mill is erected and in
operation, the deposit of $50,000 may be applied on account
of bonus dues as they accrue, but the regulation dues, as
mentioned above, shall be paid in the usual manner as re-
turns for cutting of wood and timber are received and ac-
counts rendered.
The highest or any tender not necessarily accepted.
P''or particulars as to description of territory, capital to
be invested, etc., apply to the undersigned.
.All tenders should be enclosed in sealed envelope and
marked plainly on outside, "Tender for Nagagami Pulp and
Timber Limit."
BENIAH BOWMAN,
Minister of Lands and Forests.
Toronto, January 24th. 1921.
N.B. — No unauthorized publication of this notice will be
paid for.
NOTICE OF DIVIDEND
The regular quarterly dividend at the rate of STc per
annum on the Preferred Stock of the Mutual Finance Cor-
poration, Limited, has been declared by the Board of Direc-
tors, payable on April 15th, 1921, to paid-up stockholders
of record March 31st, 1921.
A. F. HEALY,
President.
Windsor, March 15th, 1921. 495
A copy of The Monetary Times of June 18, 1920, is wanted.
Any subscriber forwarding one will ha.ve his subscription
advanced one month.
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways for the first week in
March : —
Canadian Pacific Railway
1921. 1920. Inc. or dec.
March 7 $3,255,000 $3,244,000 ^ $ 11,000
Canadian National Railway
March 7 $2,049,345 $1,690,099 - 359,246
Grand Trunk Railway
March 7 $1,764,260 $1,654,205 -f 110,055
64
THE MONETARY TIMES
Volume 66.
Corporation Finance
Saguenay Pulp Had Good Year — Gross Income Almost Doubled — Sawyer-Massey Profits Best in Some Years
— MfKinley-Darragh Mines Lost Money in 1920— Canadian Salt Company's Operations Were Affected Last
Year — Simpson Company Reports Lower Net Earnings — Porto Rico Statement Reflects Utilities Recovery
Brazilian Traction, Light and Power Co., Ltd Gross
earninfis of the company in January, 1921, amounted to 12,-
ST.'i.OOO milreis, as compared with 9,655,000 milreis in the
previous year. Operating expenses were 2,113,000 milreis
higher, and net earnings for the month amounted to 6,217,000
milreis, being an increase of 1,107,000 milreis, as compared
with January, 1920.
British Columbia Telephone Co. — The company has filed
with the Dominion Board of Railway Commissioners an ap-
plication for increases in exchange rentals and telephone
charges amounting to $397,000 per annum. The increases
asked for are principally confined to the larger exchanges in
the company's territory. In Vancouver an increase of $1.50
a month on business telephones, making the charge $7.50
instead of $6, is asked for, and also an increase, of 50 cents
a month on residential telephones. In addition to the flat
rate service, the company is asking for an increase of $1.50
per 100 calls in its measured service to small business sub-
scribers, making this rate $5.50 for the first 100 calls and
three cents for every additional call.
Porto Rico Railways Co. — An increase of 34 per cent,
in the company's net earnings in 1920 is another reflection
of the general recovery of public utilities, both in this country
and abroad. The figure for last year was $617,553, compared
with $459,543, a gain of $158,010. Gross earnings amounted
to $1,402,735, compared with $1,129,782. Operating expenses
continue to be abnormally high, accoi-ding to the report of
D. E. Thomson, president. A drought of unpi-ecedented
severity in May, June and July compelled the resort to steam
plant operation, resulting in a loss of over $30,000. First
mortgage bonds of the company amounting to $50,500 were
purchased and delivered for cancellation in accordance with
the sinking fund requirements of the trust deed. The amount
so far redeemed is $502,500. Further purchases of such
bonds have been made to the amount of .$34,000.
The sum of $167,533 was expended during the year on
capital account and paid out of earnings. After providing
for interest charges and dividends on the preferred and
common stocks, the surplus earnings amounted to $266,091.
This, with the undistributed profits at the end of 1920, $289,-
172, make a total at credit of profit and loss of $555,264,
which, after appropiration to various reserves of $140,000,
leaves a balance carried foi-ward of $415,264. The company's
position in regard to working capital also shows improve-
ment, current assets being $415,043, compared with $261,870,
and current liabilities $223,782, compared with $144,573.
Total assets are $8,537,980, as against $8,341,413.
Robert Simpson Co., Ltd. — Profits of the company for
1920 were materially afl'ected by the downward revision in
prices, as shown by the annual statement, which has just
been made public. Net profits amounted to $1,052,281, as
compared with $1,986,343. Under the circumstances, how-
ever, the showing on the whole was satisfactory. Adding the
balance brought forward from the previous year of $1,689,-
463, there was available $2,741,745, after deducting selling
and general expenses, depreciation, bond interest, etc. This
was disposed of by payment of $201,000 dividend on prefer-
ence stock at 6 per cent., $385,250 dividend on common stock,
$212,000 war tax reserve and $100,000 reserve for bonuses
and employees' savings and profit-sharing funds. That left
$1,843,495 balance caiTied forward.
H. H. Fudger, president, in his report, called attention
to the smaller stocks of merchandise on hand in the balance
sheet of last year, the figure being $3,886,121, compared with
$3,961,569. Advances to associated companies are reported
at $1,501,558, as against $1,235,404. The company's working
capital position has improved, current assets being $6,300,-
115, against $6,120,069, and current liabilities $2,423,330,
against $2,518,055. Total assets are $13,495,656, compared
with $13,755,016.
Canadian Salt Co. — According to the annual report, just
issued, operating profits amounted to $202,298, as against
$236,881, and, after payment of bond interest, business profits
tax, and allowing for depreciation and reserve, etc., there
were net profits of $98,981, compared with $136,286, or indi-
cated earnings on stock of 8.1 per cent., compared with 17
per cent, last year. Adding the balance brought forward from
1919 of $595,858, there was available for distribution $694,-
840. Out of this was paid a special dividend of undivided
surplus at December 31, 1916, amounting to $400,000, and
other dividends of $88,000, leaving a balance forward of
$206,840. The $400,000 was distributed to shareholders in
March last on the basis of one share for two, thus increasing
the capital stock from $800,000 to $1,200,000.
The company's working capital has suffei-ed some de-
crease, current assets being practically unchanged at $433,-
254, compared with $432,674, while current liabilities are
$396,532, compared with $320,187. Total assets are $2,203,-
670, compared with $2,116,918.
McKinley-Darragh-Savage Mines of Cobalt, Ltd. — A loss
of $40,574 on operations during 1920 was experienced by the
company, as compared with a profit of $354,128 in 1919.
Dividends amounting to $202,292 were paid during the year
from surplus, which now amounts to $122,735. In his re-
port, H. Sibley, treasurer, states: —
"At the beginning of the year 1920 the price of silver
was $1.31 an ounce. At the close of the year the price had
fallen to 64 '4 c. an ounce. As our average cost of producing
silver during 1920 amounted to 85%c. an ounce, the situa-
tion changed from one of operating at a substantial profit to
one of operating at a steady loss. On January 1, 1921, there-
fore, it became necessary to close down the plant com-
pletely. While it will be possible to operate the mine in
the future at less than 85 ^c. an ounce, owing to lower
wages, a much higher actual production per man per day,
and a decrease in the cost of materials necessary to mining,
it is improbable that the ores left in the McKinley Mine,
which averaged in 1920 approximately 9 ounces of silver to
the ton, can ever be produced profitably at around the present
market prices. The reopening of the mine, then. Is condi-
tioned on a real strengthening in the world demand for
silver bullion."
The balance sheet shows a reduction in current assets
from $579,100 to $357,797, and an increase in current liabili-
ties from $101,478 to $110,339. Total assets are now $2,-
502,000, as compared with $2,739,864 a year ago. The surplus
is $122,735, as against $365,601.
Sawyer-Massey Co., Ltd. — .\fter deducting administra-
tion expenses, profits for 1920 totalled $223,815. The record
was the best in some years, and was $124,533 in excess of
the profits of 1919. After paying bond interest, $28,620;
providing for federal income tax, estimated at $12,000; re-
serving for plant depreciation, $24,000, and making a resei-ve
for possible inventory depreciation of $50,000, the amount
carried foi-ward to the credit of profit and loss account was
$100,966. -As the company had carried a debit balance in the
profit and loss account of $452,987 from the previous year,
a debit balance still remains of $352,020.
The company's total assets now stand at $5,915,316, as
compared with $5,309,585 a year ago. Fixed assets, which
stood at $1,388,106 at the close of November, 1919, rose to
$2,292,662 during the past year, and notes and accounts re-
ceivable totalled $1,658,134, as compared with $1,446,776
March 18. 1921
THE MONETARY TIMES
55
Why High-Speed American Presses
must have Canadian Paper
IN every large industry there are fundamental reasons
which make it indispensable to human welfare — and
therefore permanent in character. The degree of
permanence determines its value to the shrevk'd investor.
The average edition of the Chicago
"SunJa\/ Tribune" consumes as much
nemsprinl as the total average con-
sumption of Canada's ilail\) and
iDcel^/j) nenispapers. In its on>ri mill
at Thorold. Ontario. at,out 4.000 feet
of paper are produced a minute, for
its exclusive use. The International
Paper Co.. the largest newsprint pro-
ducers in the Jvorld. with a plant at
Three Rivers, states that it ivill not
build any more plants in the United
Slates. Even Lord .Northcliffc's
dailies, the London ■■Times" and
"Dailv Mail." are fed h\, mills on
this side.
In Canada and the United States
the newspaper is a unique educa-
tional and social force. It has be-
come the mouthpiece of the
aspirations of the race, of the
ambitions of the individual — of i
the forces that make for c
tion. It has been called the
People's University. It has made
us the greatest readers in the v^orld.
But the newspaper is also the ve-
hicle of the greatest selling force in
the world — advertising. Each year
sees the necessity for a larger vol-
ume of sales, and new advertisers
are being constantly created. So,
until we cease to be manufacturers
and merchants, advertising must of
necessity! under normal conditions)
increase. ,
High speed presses are essential
to newspapers. The 2324 Dailv
newspapers in Canada and the
United States print 3 1 .000,000 copies
daily — to say nothing of the week-
lies. The consumption of news-
print in the United Statrs has risen
from 3 lbs. per capita in 1880 to
over 40 lbs in 1920.
Outside the rapidlv diminishing
supply produced in the United
States, only Canadian newsprint
ows the great printing presses to
develop the high speed demanded
of them. Theycannot maintainthat
speed with European paper.
With less than a week's supply
of paper on hand, but with ample
supplies of spruce coming to the
mills on the Spring floods, only the
Canadian mills with their perfected
equipment can supply the enor-
mous and growing demand from
the greatest free ma'ket in the
world — just across the border.
Even at the lowest prices predic-
ted by the most pessimistic, the
industry can still earn a large sur-
plus over the requirements of its
senior securities.
The well-advised investor knows
that the recent falling off in de-
mand is purely an insignificant dip
in the curve of consumption that is
constantly rising. The facts prove
that the permanence of the largest
exporting industry in Canada is
established beyond all question.
GREENSHIELDS & CO.
Investment Bankers
Toronto
17 ST. JOHN STREET, MONTREAL
WHAT WOULD THE WORLD BE WITHOUT PAPER
Ottawa
THE MONETARY TIMES
\'olunie 66
before. The reserve for depreciation increased to $417,441,
as against $106,243 the year before. Bills and accounts pay-
able aggregated $1,981,196, an increase of $264,918 for the
year. Total current liabilities were $1,989,375, as compared
with current assets of $3,034,399; hence the company's work-
ing position is strong, the excess of current assets over cur-
rent liabilities being $1,035,024.
Saguenay Pulp and i'ower Co. — The second annual state-
ment of the company shows marked improvement over the
first one. It will be remembered that previous to 1919 the
statement was issued by the North American Pulp and Paper
Co., but in June, 1919, that company and its subsidiaries,
together with the Saguenay Power and Light Company,
organized under the above name. The report is all the more
interesting in \new of the pending ratification by the share-
holders of the North American Pulp and Paper Companies'
Trust to the plan of exchanging their holdings for those of
the Saguenay Company.
Gross income last year amounted to $10,488,213, as com-
pared with $5,410,544 in 1919. After the addition of other
income and the deduction of operating charges, there remains
net income of $3,574,925, as compared with $1,415,177 in
1919. Deduction of interest, depreciation and other chai-ges
leaves surplus to be carried into the current year of $1,409,-
812, a rather sharp increase from the surplus of $33,651
remaining at the end of 1919.
The balance sheet also reveals a more comfortable posi-
tion. Working capital has substantially increased, as shown
by the following figures: —
1920. 1919.
Current assets $5,397,657 $4,202,086
Current liabilities 4,255,920 3,954,108
Net working capital $1,141,737 $ 247,978
CASUALTY COMPANY OF CANADA
The Statement of the Casualty Co. of Canada, pre-
sented at the annual meeting held in Toronto on March 10,
shows gross premium income of $32,333, net premium in-
come of $28,900, interest on bonds $1,854, and total net in-
come of $30,800; claims were $13,153, and expenses, commis-
sions and taxes $13,900, leaving profits of $3,800. The busi-
ness in force has increased from $17,248 to $38,018. Assets
are $60,283. and liabilities $21,807, leaving an excess of $38,-
476. against the paid-up capital stock of $47,266. The sub-
scribed capital is now $108,800.
The company has started a new line, automobile liability.
C. S. Blackwell is president, and A. Wybum Eastmure, man-
aging director.
PROSPECTS FOR LIFE BUSINESS
"When I left Toronto I was of the opinion that we would
have considerable difficulty this -year in keeping our western
business up to last year's figures," said A. Gordon Ramsay,
a.ssistant general superintendent of the Canada Life in Win-
nipeg, on Febi-uary 27. "In fact, we looked for a decrease.
After visiting our various branches I am confident that while
we will have to take our coats off, we will again this year
.show an increase, and that collections will be normal. There
is p.. feeling of confidence to be obsei-ved, and although the
fanners to some extent have been chafing at the tightening
up of the banks, it seems to be generally admitted that they
will go into spring on a generally sounder basis than for
several years past. The banks expect to take full care of
their customers' requirements, and this yeaa- there seems to
be no discussion of government seed grain support, and the
elimination of anxiety on this score supports the general
feeling of confidence.
RECENT FIRES
Elevator of the Mitchell Hay and Grain Co., Winnipeg,
Destroyed — County Court House at Yarmouth, N.S., and
Alexandra Block in Brandon also Damaged
Beamsville, Ont. — March 11 — A fire in Brown and Co.'s
bakery caused by smoke and water, about $1,500 damage to
the building and contents.
Brandon, Man. — March 10 — The Alexandra Block on
Tenth Street was damaged by fire. The loss is estimated at
$10,000.
Kamsack, Sask. — March 6 — A fire broke out in Kalma-
koff and Verigin's general store and completely destroyed
the warehouse.
Nicola, B.C. — March 5 — The store occupied by Nicola
Stock Farm Co. was destroyed by a fire which was caused
by the furnace. The loss is partly covered by insurance.
Oyama, B.C. — March 8 — Fire destroyed the home of
W. H. Rea, the post-oflice and the general store. The fire
was caused by an oil lamp.
Swanson, Sask. — Mai'ch 14 — A fire broke out, destroying
eight or nine buildings and causing lai'ge property loss.
Wingham, Ont. — March 14 — Lloyd and Son's sash and
door factory was damaged by fire. The damage was placed
at $2,000, partly covered by insurance.
Winnipeg, Man. — March 15 — Fire of unknown origin
caused damage estimated at $50,000 in the elevator of the
Mitchell Hay and Grain Co. The loss is covered by insurance.
Yarmouth, N.S. — March 10 — The county court house was
destroyed by fire with a loss of $20,000.
ADDITIONAL INFORMATION CONCERNING FIRES
Hamilton, Ont. — February 23 — A fire broke out in the
Orchard wing of the Ontario Hospital for the Insane. The
loss to building is $65,000 and $25,000 to contents. There
was one fatality.
Manitoba. — The fire commissioner's report for the month
of January shows that during the month there were 124
fires, with a total loss of $366,166. There were 53 dwellings
destroyed and 17 fires on farm property. Overheated stoves
and smoke pipes were responsible for 29 fires, defective and
overheated chimneys caused 16, and there were 3 fires from
spontaneous combustion. During the month there was one
fatality.
St. John's, Nfld. — December 23 — The picture and club-
room outfits of the Star Movie Co. were destroyed by fire
with a total loss of $125,000. There is $27,000 insurance.
Toronto, Ont. — March 2 — The premises of the Imperial
Trunk and Leather Goods Co. were damaged by fire. The
loss is $450, with insurance of $3,800 in the Merchants Fire,
Dominion Fire and American Equitable Fire Insurance Com-
panies.
Travers, Alta. — February 17 — The Guy Paulson Build-
ing was destroyed by fire with a loss of $23,000 and insur-
ance of $11,050. A store belonging to A. Buchau was
damaged to the extent of $350.
Vancouver, B.C. — The Chief of the fire department, in
a letter to The Monetary Times, states that during the month
there were 74 alarms in that city with a loss of $31,058. The
following show the cause of fires: — Chimney fires, 20; care-
lessness with cigarettes, 2; electrical origin, 3; incendiary
origin, 3; sparks, 1; matches, 1; explosion, 1.
Vancouver, B.C. — February 16 — The fire which broke
out in the frame storehouse in the C.P.R. yards did $800
damage. The fire was caused by some oil-soaked clothing
having been placed on hot water pipes.
Waweig, N.B. — February 20 — One house and two barns
belonging to 0. E. Nixon were destroyed by fire, which
was of incendiary origin. The loss was $8,000 with no in-
surance.
Pcm.lSHKD EVF.RV Fkidav
The Monetary Times
Printing Company
of Canada, Limited
■■"The Canadian Engineer"
Trade Review and Insurance Chronicle
of CanaDa
Established 1867
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
War-time Taxation Now Being Tested
Deflation and Business Depression Causes Some Revenues to Fall Oif— Business
Profits Tax will Probably be Allowed to Expire— Income Tax a Permanent Source
of Revenue— Excise Taxes are Due for Revision, but Sales Tax will likely Remain
NOW that war time a.nd even "reconstruction" expenditures
are practically a thing of the past, the government is
able to make a good financial showing from month to month.
But there are fixed charges resulting from the war, such as
interest and pensions, which will last indefinitely. These do
not come dowji with the fall in prices, a^nd will, therefore, be
an increasing rather than a decreasing burden for some
years to come.
When expenditures began to fall off last year, revenues
continued buoyant, being aided by a more rigid enforcement
of the income tax law. Now, however, some sources, es-
pecially the customs and excise t£'Xes, are making a poorer
showing. This is the result of a decrease in trade and gen-
eral dullness in business.
Faced with these substantial expenditures, the govern-
ment is obliged to consider its sources of revenue. War-
time taxation has proved productive. In February $5,545,.352
was raised from inland war revenue, $.5,987,272 from the
business profits ta-x, $G,267,915 from the income tax, and
$611,248 from other war tax revenue. This is a total of
over $18,000,000, or over half the total from all sources.
Receipts from the customs on the other hand were only
$9,955,5(i4, compared with $13,891,671 in February, 1920, and
from excise duties only $2,812,674, compared with $.3,517,590,
was obtained. It is obvious, therefore, that some of the war
taxes must become permanent. The income tax is now re-
garded as here to stay. The business profits tax will prob-
ably be allowed vo expire, while the other taxes may remain
with some revision.
Special War Revenue Act
The Special War Revenue Act of 1915 levied a tax on
bank circulation, on insurance premiums, on trust and loan
companies, cable and telegrr..phic messages, railway and other
tickets, bottles and packages, cheques, money orders.
In amending this act in 1920 the "luxury" and "sales"
taxes were introduced. The former levied 10 per cent, on
certain goods sold by retail at prices above those specified,
and 15, 20 and 50 per cent, on certain others. These were
calculivted on the full value, but a number of other taxes of
10 and 15 per cent, were to be calculated on the excess over
the exemption limit. These were to be paid by the consumer,
and collected from him by the retailer.
The sales tax was a tax of 1 per cent, on sales by manu-
facturers and wholesalers, or jobbers, but in the case of sales
by ma-nufacturei's to retailers or consumers, it was to be 2
per cent.
Business Profits War Tax
The Business Profits War Tax Act, 1916, imposed a tax
on profits for every year after the calendar year 1914. The
rate was 25 per cent, of all profits above 7 per cent., in the
case of incorporated companies and a^bove 10 per cent, in
the case of other businesses. Exceptions were made in the
case of companies employing a capital of less than $50,000,
life insurance, farming and livestock raising, and companies
commissions or associr,>tions not less than 90 per cent, of the
stock of which was owned by a province or municipality.
Profits were defined as net profits for the accounting period,
and in the case of non-Canadian companies, were to be the
net profits from its Canadian business only. Returns were
to be made by July 1, and the tax was to be paid by Novem-
ber 30 each year on the profits of the preceding year. The
tax was to run for three years, that is, the profits of the
calendar years 1915, 1916 and 1917 were to be taxed.
In 1917 this act was amended, the rate being increased
to 50 per cent, on all profits in excess of 15 per cent., and to
75 per cent, in the case of profits in excess of 20 per cent.,
commencing with the year 1917. It was also made payable
on one month's notice, and its duration was to be for at least
36 months, commencing with the beginning of the first ac-
counting period ending after December 31, 1914.
In 1918 another amendment was passed, levying a tax of
25 per cent, on profits exceeding 10 per cent., where the
capital WK.3 from $25,000 to $.50,000. The tax was also ex-
tended to apply to profits of 1918.
In 1919 it was again extended to include the profits of
that year. In 1920 it was again extended to 1920 profits,
but the rate was changed to the, following: Profits not ex-
ceeding 10 per cent, exempt; 20 per cent, on profits from
10 per cent, to 15 per cent.; 30 per cent on profits from 15
to 20 per cent.; 50 per cent, on profits from 20 to 30 per
cent.; and 60 per cent, on profits exceeding 30 per cent. Busi-
nesses employing ca.pital of from $25,000 to $50,000 were to
pay 20 per cent, of profits in excess of 10 per cent.
Income War Tajf Act, 1917
The Income War Tax Act, 1917, levied the following
rates on personal income: 4 per cent, upon all income ex-
• ceeding $1,500 in the case of single persons and $3,000 in
the case of married persons; in addition, the following rates
on larger incomes: —
Over $ 6,000 to $ 10,000 2 per cent.
10,000 to 20,000 5 "
20,000 to 30,000 8 " "
30,000 to 50,000 10 '■
50,000 to 100,000 15 •
100,000 25 " "
Corporations and joint stock companies were required
to pay the normal tax only on income exceeding $3,000.
Returns of income were to be made by April 30 each
year, and the tax was to be paid within a month after notice.
The first tax was to be paid on the income of 1917.
In 1918 the exemptions were reduced from $1,500 to
$1,000, and from $3,000 to $2,000, respectively. New rates
were fixed, called the normal tax, supertax and surtax. The
THE MONETARY TIMES
Volume 66.
first was 2 per cent, upon the income of single persons, from
ifljOOO to $1,500, and on the income of ma-rried persons from
$2,000 to $3,000, and 4 per cent, upon all income above $1,500
and $3,000, respectively. The second varied from 2 per cent.
on incomes from $6,000 to $10,000, to 50 per cent, on incomes
exceeding $1,000,000. The surtax was 5 per cent, of the
normal tax and supertax on incomes from $6,000 to $10,000,
10 per cent, from $10,000 to $100,000, 15 per cent, from $100,-
000 to $200,000, and 35 per cent, ex $200,000. Companies
still paid the normal tax only.
In lilli) the normal tax wa* made 4 per cent, on all in-
comes exceeding $1,000 and $2,000, respectively, and 8 per
cent, when it exceeded $6,000. The supertax was abolished,
and a surtax of from 1 to 65 per cent, substituted. The cor-
poration tax was made 10 per cent, of incomes exceeding
$2,000.
In 1920 an additional 5 per cent, of the normal and sur-
tR'Xes on incomes of $5,000 and over, was added. It was also
provided that one-quarter of the tax was to be paid on mak-
ing the return.
SUN TRUST COMPANY REPORT
The annual meeting of the Sun Trust Company was held
in Montreal on March 7. The balance sheet shows the fol-
lowing assets: Real estate, $1,903,959; mortgage loans, $40,-
042; stocks, $352,275; bills receivable, $37,633; bonds, $3,110,-
123. Total, $5,759,994. J. B. Peloquin was added to the direc-
torate and the other directors were re-elected.
STOCK BROKERS' DELEGATION
President E. G. Wills and a delegation of members of
the Toronto Stock Exchange, interviewed Sir Henry Drayton,
the minister of finance, on March 15, with respect to the
form of a return of stocks held for speculation which is re-
quired by the government under the provisions of the Income
Tax Act. They objected to the return in its present form,
apparently on the ground that the preparation of a report
showing in detail all stock transactions of a speculative char-
acter made in a broker's office would involve much labor
and expense. Sir Henry Drayton, it is understood, while
emphasizing the determination of the government to secure
details of all taxable incomes, was able to meet the objec-
tions of the brokers, and indicate to them the extent of the
information required for the purpose of the collection of
the income tax.
PRUDENTIAL TRUST CO.
In keeping with the reports of other trust companies
which have already appeared, the annual statement of the
Prudential Ti-ust Co. reveals a handsome increase in business,
together with a good advance in profits. The net profits foi-"
1920 amounted to $41,895, showing a.n increase of $11,849
oyer 1919. Out of this amount provision is made for the
dividend of $5,918, covering the final quarter of 1920, and
payable March 15, 1921, leaving a balance transferred to
contingent re.serve account of $35,977. This, along with a
sum of $30,687, credited from 1919, brings the total of con-
tingent reserve to $136,441.
In the trust department the company reports invest-
ments under administration by the company of $2,823,250,
which is double last year's total of $1,411,390. Cash in bank
amounts to $773,771, making a total of $3,597,021, as com-
pared with $2,277,463 for 1919. In the guaranteed trust ac-
count the total is $1,044,050, comparing with $1,045,611 in
1919. The bond trusteeships of the company have grown
from $33,177,000 during the year to $34,307,000 as at the end
of 1920. Total assets are now $5,510,163, compared with
$4,845,992 in 1919.
SASKATCHEWAN MUNICIPAL HAIL ASSOCIATION
Surplus of $577,224 Will be Held as Reserve Against
Future Contingencies
FOLLOWING a meeting of the board of directors on
March 7, the annual convention of the Saskatchewan
Municipal Hail Insurance Association was held in Regina
on March 8, with the President, A. E. Wilson, of Indian
Head, in the chair. A surplus of $577,224 for the year
ended January 31, 1921. made possible the piovision of a
reserve fund. The surplus is made up of a balance of
$238,046 from the operations of the association in 1919 and
$339,177 from last year. The assets of the association in-
clude an item of $324,336 as total arears of assessments and
penalties due the association from the municipalities-; $285,-
000 invested in farm loan debentures and $11,500 cash in
the bank.
Forty-Acre Limit
The delegates went on record as being- in favor of the
abolition of what is known as the 40-acre exemption clause
of the Hail Insurance Act. Under one of the sections it is
provided that an additional rate shall be fixed by the board
of directors to be levied on all the land of an owner or
occupant under crop in excess of 40 acres. By their vote
the delegates ask an amendment to the act doing away alto-
gether with the exemption of 40 acres.
Possibly the second most important resolution of the
day had to do with the right of a tenant of a farm to come
in under the municipal hail insurance scheme where the
owner of the land has withdrawn. Considerable discussion
centred around this point and finally the convention accepted
the following resolution presented by delegates from Willow
Bunch: "Whereas it is the intention of the Municipal Hail
Insurance Association to provide protection against hail
damage on all crops in the province and that such intention
is thwarted by the withdrawal of lands by the owner when
renting his land, be it therefore resolved that wliere an
owner has withdrawn his land from the operations of the
association it shall be within the right of the tenant to secure
protection by applying for the same providing all dues are
paid on demand."
Discuss Surplus
The fact that the association now has a surplus of over
half a million dollars also brought forward an interesting
discussion during the morning session. Some objection was
raised to a large surplus by a representative from Big Quill .
municipality, who expressed the opinion that it was not a
wise policy. The convention, as a whole, however, indicated
that the experience of the association in 1916, when a half
million dollar surplus was wiped out almost overnight, was
one they had no desire to have repeated.
Hon. C. M. Hamilton, one of the vice-presidents of the
association, reminded the convention that in 1915 when the
association was beginning to accumulate a surplus there was
an expression of opinion that a less amount than the flat
rate of that time would be sufficient. In 1916, that was
shown to be a fallacy. He thought that another agitation
had grown up for a reduction of the flat rate but felt they
should go slow in making any change. "The amount being-
paid by farmers of Saskatchewan under this system com-
pared with the amount charged by line companies, gives to
our farmers an insurance at an extremely low rate. To
make insurance safe the risk must be distributed over a
period of years and over as large an area as possible. I
personally would like to see a surplus built up that would
reach one or two million dollars if it can be done by charg-
ing a rate not more than half that charged by the line com-
panies as at present."
The business of the Mahon Bond Corporation, Ltd., St.
John, N.B., is now being conducted under the name of W. F.
Mahon and Co., the name used in connection with the Hali-
fax office.
March 25, 1921
THE MONETARY TIMES
The Week in Parliament
Railways Chief Subject of Discussion — Various Alternatives Proposed — Windsor-
Michigan Bridge Company Incorporated — Bill to Amend the Bankruptcy Act
(Special to Tke Monetary Tivies.)
Ottawa, March 24, 1921.
Thursday, March 17
In House of Commons: — (a) Annual statement of
Minister of Railways on government-owned railways: (b)
Passing of two million dollars estimates for Department of
Agriculture.
Friday, March 18
In House of Commons: — (a) First readings of following
bills: one respecting Canadian Pacific Railway Company, an-
other regarding Canadian Transit Company to build a bridge
for railways and vehicular traffic from Windsor to State of
.Michigan, one respecting the Credit Foncier Franco-Canadien,
and another respecting the London and Lake Eric Railway
and Transportation Company; (b) Hill to amend Bankruptcy
Act and enlarge scope of present act introduced by S. W.
.Jacobs of .Montreal; (c) Resignation of Sir Herbert .\mes as
member for St. Antoine; (d) Third readings of act incorporat-
ing Bar Association, and act incorporating (iilmour and
Hughson, Ltd.; and (e) Passing of another two million dollars
estimates, justice and agriculture departments.
Monday, March 21
In House of Commons: — (a) First reading bill to incor-
porate the Quebec I'nion Electric Telephone Co.; (b) Con-
sideration of bill to incorporate North .American Trust Com-
pany of Canada and reference back to committee; (c) S»>cond
readings bills giving Canadian Pacific extended debenture
powers, Canadian Transit Company incorporation, and London
and Lake Erie Railway and Transportation Company. Credit
Foncier Franco-Canadien cancellation of incorporation; (d)
Discussion on Hocken resolution to appoint Federal Housing
Hoard and finance erection of homes.
Tuesday, March 22
In House of Commons: — (a) Discussion on Mackenzie
King resolution asking that government be required to pro-
duce all information, correspondence and accounts of Can-
adian National Railways on demand of members when not of
confidential nature, and resolution defeated.
Wednesday, March 2."J
In House of Commons: — (a) Estimates; and (b) Private
members' bills.
The Railway Situation
The principal event of the week was the annual report
of Hon. J. D. Reid, Minister of Railways and Canals on
the Government-owned railways. The situation disclosed as
to the operating deficit and the information given that even
the Grand Trunk Railway Co., and from which so much
has been hoped, was not able to pay all its fixed charges
from its surplus above operating costs has been the theme
not only in speeches in the House but amongst members in
gatherings outside. The final taking over of the Grand
Trunk Railway is looked upon by the government as the
real beginning of the testing time of their management of
the railways. But the economies through the elimination of
duplicate services and offices, and the better co-ordination of
all the lines, which they expect to make things better next
year along with proposed reductions in wages, could have been
affected by means of boards established already for this pur-
pose. Therefore the air is rich with suggestions as to what
should be done.
Public ownership advocates are urging that the govern-
ment should complete the co-ordination of the i-oads as
quickly as possible, and put in control as quickly as possible
a strong board with the most capable executive as president
or general manager that can be found. Private ownership
advocates are asking that the Canadian Pacific Railway
should take over the road and operate it under a fixed ar-
rangement with the government. Members of the House
like the Hon. A. K. MacLean and the Hon. T. A. Crerar have
advocated that a House Committee should be formed to go
into the whole question and to make it their principal busi-
ness in Parliament to investigate all details of management
and operation with the object of reporting to the House. On
Tuesday the House defeated one resolution asking that all
details should be furnished the House except matters of con-
fidential nature. The subject will recur at every possible
opportunity during the session.
OPPORTUNITIES OF BRITISH COLUMBIA ARE MANY
.•\n optimistic prospective and retrospective view was ex-
pressed by W. J. Blake Wilson, retiring president of the
Vancouver board of trade at the recent annual meeting. To
support his arguments, Mr. Wilson quoted comparative
statistics showing the progress of the various industries, to-
gether with figures dealing with the vast natural resources
behind each particular line of activity.
"Vancouver and British Columbia need have no fear
of the future," he said. "The potential wealth of this pro-
vince is so great, and her opportunities for safe and sound
investment so many, it seems to me that if we exercise in
future a greater degree of foresight and caution we need
fear no repetition of the depressive periods which we have
gone through during the past two years. With a safe and
sound policy of imm.i'jrration and a careful analysis of the
indi\iduals who will surely come to us from other countries
in Europe, and a careful statement of the facts to the in-
vestor of the possibilities awaiting him in British Columbia,
I believe that the future of our province will be second to
none in the Dominion of Canada.
"One of the important factors in any country is the
development of her agricultural plans. I would urge this
board during the ensuing year to do everything in its power
to develop a sound colonization scheme, having for its ob-
ject the building up within our province of a strong rural
community. Without this British Columbia cannot prosper
as she should. We have the country, and the Motherland
has the prospective settlers, and I submit that we must first
encourage and do everything in our power to bring to Canada
citizens of the British Empire."
The Vancouver board of trade is a big institution, its
membership now totalling 1,200. For the coming year J. P.
D. Malkin will be president.
Members of the International Association of Machinists
are voting on a benefit insurance plan. By the proposed
scheme each member between the ages of 1.5 and 80 will pay
a flat rate of 50 cents a month for a minimum of $.500, in
addition to the existing sick and death benefits of $.300. The
insurance may be increased by $-50 each year until a total
amount of $2,000 has been taken.
The Privy Council of Great Britain on March 16 dis-
missed two petitions for leave to appeal, one being the case
of Standard Rank of Canada vs. McCrossan, from Vancouver,
and the other of Wahh vs. Mackenzie, from Nova Scotia,
their lordships reiterating that they must decline to allow
appeals from the Supreme Court of Canada except in very
exceptional circumstances.
THE MONETARY TIMES
Volume 66.
MANITOBA WILL FOREGO NEW TAXES
Present Sources May be Called Upon For More, Says Treas-
urer Brown in Budget Speech — Estimates are High
TN his budget speech on March 18, Hon. Edward Brown,
A treasurer of Manitoba province, stated that it is not the
intention of the government to tap any new sources of
revenue this year. Some of the sources that are at present
yielding revenue, however, will be called upon to provide
more, and Mr. Brown forecasts an increased tax on unoc-
cupied wild lands, increased automobile licenses, and exten-
sion of the Corporations Taxation Act to impose a tax of one
per cent, on gross profits of all incorporated companies. He
made no reference to the much-discussed provincial income
tax.
Increase in Expenditures
Mr. Brown emphasized the point that while the state-
ment apparently showed an estimated decrease in current
expenditures for 1921 of $1,202,808, the actual increase in
consolidated expenditures for the current year will be ap-
proximately $800,000 higher than 1920. The reason for the
1921 estimates showing a decrease over 1920, while they
are actually higher, is the fact that telephone accounts have
been eliminated and placed under a separate head The ex-
penditures for 1920, Mr. Brown stated, were $10,942,808, as
compared with- estimated expenditures of $10,123,667. The
$819,141 over-expenditure the provincial treasurer ascribed
to moneys spent in combatting the grasshopper plague in-
creased grants for widows' pensions, schools, agriculture and
interest accrued in excess of last year.
While the expenditure showed an excess over the
estimates, Mr. Brown pointed out that there was an in-
«!^'nJ" "'^ revenue during the year this amounting to
$547,000.
Speaking of the telephones, Mr. Brown said there was
no reason for the current expenditures being included in
the public accounts. The interest charges on telephone bonds
guaranteed by the province, amounting to $600,000 annually
would continue to appear in the public accounts. The in-
terest IS repaid by the telephone commission. Telephone ac-
counts served to increase the budget last year by $1,880 000
Commenting on the activities of the government, Mr'
Brown described the past year as the year of gi-eatest pro-
gress ,n the history of the province. For that reason, and
because of the general financial conditions, it had, on the
other hand, been a year of the greatest diflficulties so far as
the treasury department was concerned.
Detailed figures showing the financial position of the
province are given elsewhere in this issue.
BUYERS IN WEST ARE CAUTIOUS
Fair Volume of Business, However _ Winnipeg Citizens
Buying Street Railway Bonds— Transcona's Affairs
(Staff Correspondence.)
Winnipeg, March 23, 1921.
T^HIS week business is showing a slightly upward trend
and spring seems to be close at hand. Some extensions
of credit are being asked for and collections are not quite
so good. Retail trade in many lines is quite active. From
most reports business is better, and this improvement is
likely to continue.
Throughout the west merchants are buying very care-
fully and are not carrying heavy stocks. In northern Alberta,
and in Edmonton particularly, business connected with the
development of the northern territory is showing great ac-
tivity. Many hundred inquiries are being received in the
northern city on the outlook and prospects for development
this coming spring.
North of Edmonton is a vast expanse of ten-itory, ex-
tending over an area of some fourteen hundred miles, the
mineral and agricultural wealth of which is deserving of the
greatest effort toward development which can be put for-
ward by the citizens of this city, said Hon. Frank Oliver, in
an address at the Kiwanis Club luncheon recently. Tlie pros-
perity of any city depended, he said, not alone on the indus-
tries established within its limits, but moi-e particularly upon
the development and expansion of the territory surrounding
it. To insure the success of Edmonton, then, the vast possi-
bilities of the north country must be utilized to the fullest
extent. The city of Edmonton undoubtedly has a great future
before it in connection with the development of the rich terri-
tory to the north.
Sale of Winnipeg Electric Stock
The plan of the Winnipeg Electric Railway to sell part
of the recent three million dollar issue locally is meeting with
considerable success, and small investors are buying up a few
shares of this stock, which yields a i-eturn of 7% per cent.
It is being offered on the partial payment plan, and is some-
thing of a departure for the Winnipeg Electric.
The affairs of Transcona, Man., are being ably looked
after by Geo. P. Campbell, former secretary-treasurer, who
has been appointed commissioner by the provincial treasurer
to administer its affairs. Bondholders of the town will not
suffer any loss. At a meeting of the ratepayers of Transcona,
Mayor Lyon explained that outstanding taxes totalled $500,-
000. To carry the town through to the end of the year $285,-
000 was required. Money had been borrowed to pay teachers'
salaries, and town hall salaries and accounts were unpaid;
$78,159 was owing the sinking fund and $31,521 to the trust
account. The tax collectiqns in .January and February totalled
$4,485, and only $16,000 was held to meet a $40,000 debenture
debt payment due this month.
THE BANK OF HAMILTON
The forty-ninth annual statement of the Bank of Hamil-
ton, which ha>s just made its appearance, is an interesting
document, both from the standpoint of the general public
and the shareholders. Notwithstanding the fact that the
bank's fiscal year extended farther into the period of busi-
ness depression than in the case of other similar institutions,
current loans are shown at some five millions higher than
previously. Demand deposits, however, which are largely
from the business community, have been considerably re-
duced. But this decline was offset by a similar increase in
savings deposits, so that the bank had approximately the
same amount of funds at its disposal as in 1919.
Liquid assets comprise about 39.30 per cent, of liabilities
to the public, while in the previous year the ratio was about
45.30 per cent. The change has been brought about by the
fact that holdings of securities and call loans have been con-
siderably reduced, while liabilities to the public have altered
but little. The bank's position in this reg&rd is still good,
however, for it is considered good banking if the ratio is at
35 per cent.
The following figures show the change in the bank's
position during the year, while the comparison with 1912 will
serve to show the growth of the institution in recent years: —
1920. 1919. 1912.
Capital paid-up ... $ 4,998,220 $ 4,000,000 $ 3,000,000
Reserve fund 4,849,110 4,200,000 3,500,000
Total assets 85,348,503 84,134,109 48,907,883
Current loans 50,416,647 45,318,138 30,381,052
Liquid assets 29,601,193 34,667,655 15,907,853
Total deposits 68,525,571 68,665,705 38,087,477
Circulation 5,493,376 5,941,901 3,587,215
From the shareholders' st&ndpoint, the statement should
prove to be very satisfactory. Profits for the year were
$888,018, compared with $847,104 in 1919. Distribution to
shareholders was increased to 13 per cent., by a bonus of 1
per cent. The sum of $649,110 was transferred to reserve,
and after other provisions, a balance of $139,264 was carried
forward, as compared with $85,249 in the previous year.
March 25, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle.
0f Canada
Address: Corner Church and Court Streets, Toronto, Ontario, Canada-
Telephone: Main 7404. Branch Exchange connecting all departments.
Cable Address: "Montimes, Toronto."
Winnipeg Office: 1206 McArthur Building. Telephone Main 3409.
G. W. Goodall. Western Manager.
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Montreal: in 1870 The Trade Review, of Montreal; and the Toronto
Journal of Commerce.
The Monetary Times does not necessarily endorse the statements and
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The Monetary Times invites information from its readers to aid in ex-
cluding: from its columns fraudulent and objectionable advertisements. All
information will be treated confidentially.
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PRINCIPAL CONTENTS
Editorial : page
ImmigTation and Industry 9
The Republican Tariff Policy 10
Making Life Insurance a Profession 10
Duplicating Charitable Appeals 10
Special Articles;
War-Time Taxation Now, Being Tested 5
Saskatchewan Municipal Hail Association 6
The Week in Parliament 7
Saskatchewan Rural Municipal Association 14
The Wheat Pool 18
Ontario Loan Companies 1920 figures 20
Mineral Production Increased in 1920 22
Industrial Insurance 26
Railways and Irrigation Before Alberta House .... 31
Average Value of Land Increased 32
Higher Estimates for Alberta 36
Analysis of Business Failures in 1920 38
Progress of the Trust Companies 40
Debenture Indebtedness and Religion 42
Double Payment of Shares by Mistake 42
Weekly Departments:
News of Industrial Development in Canada 44
New Incorporations 46
News of Municipal Finance 48
Government and Municipal Bond Market .50
Corporation Securities Market 54
The Stock Markets 56
Corporation Finance . . . ., 58
Recent Fires 60
l.M.MKiRATIGN AND INDUSTRY
FROM lu'bor circles in every city in the Dominion comes
an appeal for the restriction of the flow of immigration
towards Canada. The business depression, and a certain
amount of resulting unemployment is the argument advanced.
From E. W. Beatty, on the other hand, comes the suggestion
that the acquisition of new citizens in this wr..y is the best
solution of the difficulties of our national railways. The
president of the Canadian Pacific said a few days ago that
without immigration the prospects of the Canadian N&tional
lines were, in his opinion, hopeless, and any legislation which
would stem the tide of desirable immigration must inevitably
pile up further deficits. It was, he said, an aggressive im-
migration propaganda that built the Ca^nadian Pacific Rail-
road, and he claimed that Hon. T. A. Crerar, leader of the
National Progressive party, struck the right note when he
declared before the Canadian Club in Montreal recently that
a wise and vigorous policy of immigration would help solve
the problem.
Mr. Beatty added: "I quite agree with those who object
to immigration of city-bred continentals of poor physique
and doubtful health, who would at once drift into slums, or
of large communities of foreign-born who frankly declare
th&t they do not intend to assimilate with English-speaking
Canadians. But the gates of Canada should be opened once
more not only to the British, French and United States immi-
grant, but also to the Scandinavian and the more desirable
type of continental." He pleaded also the cE'Use of the skilled
mechanic, in addition to that of farm hands and domestics,
on the ground that Canadian industry would be handicapped
in its progress without them. He concluded: "Policies which
are perfectly appropriate in the case of the United States,
would not necessarily be applicable to this country. By all
means let us exclude the undesirable immigrant, but admit
those who in time will contribute to this country's commer-
cial prosperity and economic strength."
How are we to reconcile these arguments from both
sides? Clearly it can only be a temporary state of affairs
which would justify the closing of the door to eligible new-
comers. Our Quebec compatriots and our agricultural
citizens are furnishing this country with an increase in
population, but the cities of Canada are rapidly joining the
class of great centres of population which do not maintain
themselves by natural growth. They have drawn indefinitely
upon the rural districts while the French-Canadians have
spread beyond their native province into Ontario and the
west. Canada, however, can absorb a steady but substantial
growth in both city and country. For a permanent immigra-
tion policy the policy of liberal restriction is the best.
While there will no doubt be some unemployment as
long as prices continue to fall, a movement covering a period
of years, in the summer time at least this will be scarcely
noticeable. Legislation cannot be sufficiently elastic to ad-
just immigration to seasonal changes. In fact the influence
of the new arrivals on the industrial situation each year can
scarcely be large. Conditions frequently are reversed within
a few months, before new legislation or even administrative
changes could be put into, force. Our immigration policy
will on the whole be more satisfactory if framed in the light
of Canada's needs over an extended period of years.
Some changes in the regulations governing the admission
of immigrants are understood to be under consideration at
Ottawa, however. These will, it is stated, maintain or in-
crease the money regulations at present in force, and will
admit only bona fide farm workers and domestic help. Immi-
gration from the British Isles, France or the United States
will, it is reported, not be hindered by the new regulations,
but the bars will be kept up against immigrants from Cen-
tral Europe. An important clause will deal with the admis-
sion of skilled labor. In the case of mechanics of all classes,
the proposal is said to be to admit only such men as there is
c-n actual demand for in any line of work.
THE MONETARY TIMES
Volume 66.
THE REPUBLICAN TARIFF POLICY
DUPLICATING CHARITABLE APPEALS
FROM Washington comes a report to the effect that the
new Republican administration propose to enact, not
only the Fovdney Emergency Bill recently vetoed by Presi-
dent Wilson, but also to put up the tariff generally on pro-
tective lines. All the advices heretofore have been that this
course was unlikely at least until a general revision of the
tariff. Some disposition here has been to wait and see what
is done at Washington and, in the anticipation that the de-
velopments would not be immediate, the proposal of defen-ing
the Canadian revision till next session has been given a
certain impetus.
If, now, the Fordney measure is to be re-enacted, with-
out any possibility of presidential veto, the domestic situa-
tion will be affected, not only in the country but in Parlia-
ment. The bill would put a practically pi-ohibitive duty on
wheat, cattle and agricultural products generally, and, in
effect, would largely close the United States market to these
prcKlucts from outside. The seriousness of such a policy is
not minimized.
The effect may be to make more certain revision of the
Canadian tariff this session in the light of the new condi-
tions arising out of the Fordney Bill, whereas the deepening
opinion of late has been favorable to deferring action, though
no such course has ever been indicated officially. Canada is
the largest customer of the United States and, if their
market is to be closed to essential Canadian products, similar
restrictions here on American importations will be advocated
and will not lack support in the cabinet.
THE president of a large corporation touched upon a very
important matter in a recent public utterance when he
referred to the insistent demands which are being made upon
joint stock companies and corporations for donations to
charitable institutions and organizations. It is a well-known
fact that from the legal point of view a company or a cor-
poration is something entirely sepai'ate from its shareholders,
and it is very natui'al for charitable organizations to take
the same view when soliciting donations. This results in a
duplication of appeals, for the company is expected to make
a donation as a company, and the individual shareholders
are appealed to as individuals. This state of affairs was
intensified during the war period, when individuals and in-
stitutions gave unsparingly to war organizations, such as
the Red Cross, Red Triangle Fund, etc., but now we are
facing days of smaller profits and more difficult industrial
and financial conditions.
Many institutions have reached the point where every
contribution must be carefully considered, and executive
officials feel that the dual nature of the shareholders' con-
tributions should be recognized. Some have established a
policy that no donations shall be made by the company as
a company without the shareholders' consent, which really
means that in the majority of cases the donation becomes
a matter for the shareholder as an individual to decide and
attend, to himself. This seems to be a fair and reasonable
policy, which will place all men on the same basis, in so far
as donations to worthy chaiitable objects are concerned.
MAKING LIFE INSURANCE A PROFESSION
THE Ottawa Life Underwriters' Association has passed a
resolution urging that the profession of life insurance
salesmanship be closed to all except full time men. It has
been apparent for some time past that there is a general
tendency, the result of a number of different influences
operating towards a common end, to insist more and more
upon the essentially professional character of the work of
the insurance agent and at the same time to require of
persons engaging in this work evidence of much more dis-
tinctive and extensive professional qualifications than
formerly were thought necessary. In part, the movement
has had its origin among the more experienced and com-
petent insurance agents themselves, who have long been ex-
tremely impatient at the ease with which the selling of in-
surance to the public could be taken up by persons with no
training in the theory and practice of insurance, with vir-
tually no business or financial responsibility, and often with
no intention of devoting themselves seriously and perman-
ently to this form of service of the community or of making
it anything more than a temporary or collateral means of
obtaining income with a minimum of effort.
In the eyes of those who have equipped themselves with
the knowledge and skill necessary for the really adequate
and efficient supplying of the needs of the insuring public,
it is exceedingly vexatious that the agency field should be
continually invaded by haphazard sellers of insurance,
whether these belong to the categories commonly designated
as "part-timers" and "side-liners" or are of the still more
objectionable class that use opportunities coming to them
through their regular business occupations to snatch insur-
ance commissions which they have not properly earned or
deserved. The natural reaction of the minds of those who
have made themselves insurance agents in a sound profes-
sional sense is that they ought to be protected from the in-
trusion and the ignoi-ant or purely self-interested competi-
tion of such accidental, unqualified and irresponsible pseudo-
agents; and the kind of protection which best commends
itself to them is the establishment and enforcement of suit-
able professional qualifications for all persons who would
become insurance agents.
Alberta has, it is understood, undertaken to guarantee
the bonds of irrigation districts. The credit of the province
is not improved by linking it up with an enterprise which
is local and industrial.
Net earnings of the Canadian Pacific Railway have
varied only about 5 per cent during the past three years.
This ability to succeed in the face of quickly changing condi-
tions is what makes it a premier security.
The farmers of the west should be encouraged in any
effort to facilitate and economize the marketing of grain.
What they save in this way will benefit them directly and
the rest of the country indirectly. As Canada is a wheat
exporting country, however, the price of wheat here must
be its price in the world market less the cost of carrying
it from Canada to that market.
*****
Among the new securities offered this week are those
of an Ontario metal company, a Nova Scotia paper company,
an Alberta irrigation company and an Alberta g-arment
manufacturing company. The industrial side of Canadian
development is not being neglected in the investment field,
and there is a solid basis for the emphasis laid by a couple
of prominent underwriting houses on the fact that the
prosperity of our governments and municipalities depend on
the success of industry.
*****
LOW PRICE COTTON
"Well, Old Nigger, cotton has gone to the dogs."
"Yas^nh, Boss, dat's what I heard."
"And you don't make a nickel this year?"
"Nossuh, I 'spect not."
".-^nd I've lost what money and grub I furnished you."
"I'm mighty 'fraid you is, White Folks."
"Well confound your picture, it don't seem to worry you
any."
"Lawd, Boss, don't you know there ain't a bit of use in
the world in me and you both worrying about the same
thing?"
March 25, 1921
THE MONETARY TIMES
Are You Thinking of
Travelling
THE Travellers' Cheques is-
sued by this Bank are
payable (without delay for
identification) at all the prin-
cipal points in Canada, the
United States, Mexico, West
Indies, South America or
Europe, either through one of
our 535 branches or by the
correspondents who represent
us throughout the world.
You will find these cheques a
very convenient and safe way of
carrying your funds.
THE CANADIAN BANK
OF COMMERCE
Head Office
Paid-up Capital
Reserve Fund
$15,000,000
$15,000,000
Exclusively Canadian
We take pride in the fact that this is an
exclusively Canadian Bank, with every
effort concentrated on the development of
domestic interests. For forty-five years
our organization and capacities have been
gradually broadening to cope with the in-
creasing demands of industrious Canada.
Consult our local manager regarding your
plans for development.
IMPERIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited. Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
File Your Income Tax
Returns
The Income tax for 1921) of (Corporations
and Joint Stock Companies must be filed
with the Dominion Go\ernment on or
before .\pril 30, 1921. 1 he Govern-
ment this year requires you to forward
a cheque with your return for 25% of
the tax due.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Nevk^found-
land, Cuba. Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET. E.C.2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
Hon. W. .M. Mautin, premier of Saskatchewan, has been
sworn in as temporary successor to Hon. W. F. A. Turgreon
who has resigned from the office of attorney-general of the
province.
Senator Smeaton White, of Montreal, has been elected
to the directorate of the Steel Company of Canada to fill
the vacancy created by the death of Francis H. Whitton,
of Hamilton.
Dr. John Hoskin, K.C, of Toronto, was elected vice-
president of the Western- Assurance Company and of the
British America
Assurance C o m -
pany at their re-
cent annual meet-
ings. He has been
on the directorate
of both for some
years past and is
also connected
with several other
prominent institu-
tions, being presi-
dent of the Canada
Landed and Na-
tional Investment
Company. W. B.
Meikle was re-
elected president
of both companies,
and the following
were re-elected
directors in each
case: Sir John
A i r d , Toronto;
Robert Bickerdike,
.Montreal; Lt.-Col.
Henry Brock, Tor-
onto; Alfred Cooper, London, Eng.; H. C. Cox, Toronto; J.
H. Fulton, New York; D. B. Hanna, Toronto; E. Hay, Tor-
onto; Miller Lash, Toronto; G. A. Morrow, Toronto; Hon.
Fred. Nicholls, Toronto; Sir Henry Pellatt, Toronto; E. R.
Wood, Toronto.
F. Howard Wilson has been appointed vice-president of
the Merchants Bank of Canada, to succeed the late Andrew
J. Dawes. For several years past he has been a member
of the board of directors. Mr. Wilson is president of J. C.
Wilson, Limited, one of the pioneer paper manufacturers of
this country.
G. Innes Mackenzie, of Winnipeg, has joined the firm
of Reginald Lawson and Company, Limited, insurance
agents, as manager of their casualty department. Mr.
MacKenzie was formerly in the casualty department of
Osier, Hammond and Nanton, and previous tq going to
Winnipeg some years ago, was prominent in the insurance
field in Regina.
J. W. NoRCROSS, president of the Canada Steamship
Lines, Limited, has returned to Canada after a business
trip abroad, extending over a period of several months. At
a meeting of the board of directors in Montreal this week,
Mr. Norcross reported the result of his overseas negotia-
tions in respect to both ocean freight extensions and new
financing, his efforts in this direction having been followed
by altogether satisfactory results.
R. C. MacKnight, assistant general manager of the
Northern Life Assurance Company, has been appointed man-
ager. Mr. MacKnight is in his 33rd year and is probably
the youngest life company manager in the Dominion. Prior
to entering the service of the Northern he was With the
Canadian Bank of Commerce from 1904 to 1913, when he
joined the Northern as head of the investment department.
Later he was made treasurer. His interest in the field
organization led to his being placed in charge of the western
agencies and of late he has had charge of the whole field
work. The company has felt the benefit of his excellent work
and the directors have every confidence that in placing the
management in his hands they are assured of the rapid
advance of the company.
OBITUARIES
William Clarke, one of the pioneers of the pulp and
paper industry in this country, and the founder of Clarke
City, Quebec, now a prosperous manufacturing centre of
10,000 inhabitants, died in New York recently.
Martin J. Griffin, C.M.G., LL.D., who for many years
was parliamentary librarian in the House of Commons, died
in Ottawa this week. He had been in failing health for
some time and retired last June from the post of parlia-
mentary librarian, a position which he had held for thirty-
five years. Mr. Griffin was an unsuccessful candidate for the
House of Assembly, Nova Scotia, in 1874. In 1881 he be-
came editor-in-chief of the Toronto Mail and he occupied
this position until appointed to the librarian's position in
1891.
POSITION OF OSWALD BROTHERS
At a meeting of the creditors, held recently, the financial
position of the stock broking firm of Oswald Brothers was
reported as showing a deficit of $212,000. Total liabilities
were $6.58,000, of which $493,000 is unsecured, with assets
of $446,000. Gerald H. Bruce, former junior partner in tlie
firm, to whose alleged defalcations its bankruptcy is claimed
to be due, has not so far furnished any statement to the
trustee.
Bank of Nova Scotia
New Branch at Avenue Road and St. Clair Avenue, Toronto
AUTOMOBILE UNDERWRITERS' ASSOCIATION
A special meeting of the Canadian Automobile Under-
writers' Association was held at the C.F.U.A. rooms in Mont-
real on March 15. The subject under discussion was the
resignation of the Alliance Insurance Company, of Phila-
delphia, Insurance Company of North America and Provi-
dence-Washington Insurance Company, which action was the
result of the decisions arrived at the meeting held in To-
ronto on the 23rd and 24th of February last. The meeting
was able to convince the retiring members that it would be
in the interest of all concenied that they continue their mem-
bership, with the result that the resignations were with-
drawn. The rates previously promulgated and reported in
our issue of the 4th of March are consequently in effect.
March 25, 1921
THE MONETARY TIMES
13
^iiBruoiiamunnoiinnMimuiiiiiiaiiiuimDiDnmflinimtimmanioniDiiuiiuDiimuiamiiiiniuininMnniN
I THE Sterling Bank |
I OF CANADA |
imiiniiiniiiiiiinnmmimiiniiiriniiiiiiuiiniiiiiiiiiiiNniiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiniiiniiiiimiiiiimiiniiiiiiiiiiiiiiiiiiniiniiiS
Perhaps the most important feature of our "Personal
Service" policy is its effect on Collections. Clients
have voluntarily reported that — due to personal atten-
tion— their collection Service is better and faster with
fewer bills returned unpaid.
Head Office
KING AND BAY STREETS, TORONTO
LONDON JOINT CITY & MIDLAND
BANK LIMITED
Right Hon. R, McKENNA
Subscribed Capital
Paid-up Capital
Reserve Fund •
. £38,096,363
10,840,113
1 0,840, 1 1 2
. 367,667,322
HEAD OFFICE: s. THREADNEEDLE STREET. LONDON. ^C 2.
The National Bank of Scotland
Limited
Incorporated by Royal Charter and Act of Parliament. Hstablisheu 18iS
Capital Subscribed ;f 5.000,000 925,000,000
Paid up 1.100,000 5. .500, 000
Uncalled .. 3,900,000 19,.500,000
Reserve Fund 1,000,000 5,000,000
Head Office - EDINBURGH
WILLIAM CARNKGIE, General .ManaSer. GEOKGE A. HLNTKR. Sec.
LONDON OFFICE-37 NICHOLAS LANE, LOMBAKD ST.. EC. 4
T. C. RIDDELL. DUGALD S.MITH.
Manager Assistant .Manager
The agency of Colonial and Foreign Hanks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London, are retired
on terms which will he- furnished on application.
A Newspaper Devoted to
Municipal Bonds
'X'HERE is piibli.>ihed in New York City a daily
and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond offering's.
Write for free apecimen copies
THE BOND BUYER
67 Pearl Street New York, N.Y.
ESTABLISHED
dommonwealtb Banft of Hiunialia
JAS. KELL,
Deputy Governor 1920
DENISON MILLER,
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
Good Business People
Recognize the necessity of making
their Will while in health. To neg-
lect this important matter may cost
your estate many thousand dollars.
The ideal Executor is a well-equipped
Trust Company, and you are invited
to consult in this matter with the
officers of The Bankers' Trust Com-
pany, Merchants Bank Building.
THE BANKERS'
TRVST 0OMB\NY
Head Offices: MONTREAU
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
THE MONETARY TIMES
Volume 66.
SASKATCHEWAN KUKAL MUNICIPAL ASSOCIATION
WHOLESALE PRICES STILL TREND DOWNWARD
Resolution Criticizes Increases in Rates by Railway Board —
Municipal Matters Explained by Government Officials
FINANCE was the outstanding subject of discussion at the
convention of the Saskatchewan Association of Rural
Municipalities, held in Regina, March 9-11. About 1,000
delegates were present. Premier Martin announced that the
government intends to immediately appoint a commission of
investigation consisting of five, two repret^enting rurals, two
urbans and one the government, to thoi-oughly inquire into
the whole question, with a view of suggesting some line of
policy that can be pursued with the object of making taxation
as far a* possible bear equitably on the entire population of
the province.
The presidential address was given by Murdo Cameron,
M.L.A., acting president of the association, who supported
the plea of the premier for economy in municipal matters.
He also made reference to the abolition of the supplementary
revenue tax, expressing his pleasure a^t the move.
Hon. Geo. Langley, minister of municipal affairs, dealt
with the subject of freight rates, and urged that a resolution
condemning the attitude of F. B. Carvell, chaii-man of the
Railway Board, be passed. Spea^king of control of municipal
finance, Mr. Langley said there was no difficulty in the ex-
penditure of money, but councillors should make a point of
knowing what money was coming in and arrange expenditure
accordingly. The relationship between councils and banks
should be one of perfect confidence.
Murdo Cameron, M.L.A. for Saskatoon County, who was
formerly acting president, was elected president, and Thomas
Moffat, of Viceroy, was elected vice-president.
The report of the advisory committee to the Wild Lands
Commissioner went into detail as to assessment and the for-
mation of the advisory committee, and refei-red to recent
legislation in the matter of endeavouring to equalize ta^xa-
tion. The report concluded as follows: "As no general as-
sessment had been made since 1914 the committee recom-
mended that a new assessment be made throughout the pro-
vince which the government thought advisable and brought
down amending legislation. After going more fully into the
question, and the dem&nd of both the rural and urban asso-
ciations to have some fair basis of equalization between them,
the bill was withdrawn, and a promise made that a commis-
sion would be appointed to consider the whole question, and
to try to find an equita-ble method of raising the public
revenue tax. Awaiting the findings of the commission we
recommend that no change be made in the assessment for
the year 1921."
Railway Board Criticized
The following resolution was passed regarding freight
rates: —
"Resolved that this convention desires to protest in the
strongest manner against the recent la^rge and unreasonable
increase of freight and express rates. The present high rates
will result in making successful farming on the prairies
difficult, if not impossible, and will retard indefinitely the
further settling up of the farm lands in Western Canada;
and we further protest ag&inst the want of sympathy with
the public, where railway matters are concerned, manifested
by the Railway Commission; and further, that a copy of
this i-esolution be forwarded to the prime minister of Canada."
•J. J. Smith, deputy minister of municipal affairs, ga-ve
an address on municipal matters. He pointed out that three
measures exist which might be adopted by the municipality
in an effort to bring about a reduction in the amount of
interest paid on municipal loans, namely, economy a^nd re-
trenchment in municipal expenditure, enforcement of prompt
payment of taxes, and the creation of a surplus in the muni-
cipal treasury. Mr. Smith made extended refei-ence to the
amendment to the Rural Municipality Act at the last session
of the legislature, and to the equalization of taxation.
I'ebruary Index Number Show Further Substantial Decline —
There Are Some Exceptions, However
STILL further substantial declines in wholesale prices of
a number of commodities took place in February, ac-
cording to the inde.x numbers compiled by the Department
of Labor. The index number of 262 commodities was 270.1
last month, as compared with 281.3 in Ja^nuary and 343. .5 in
February, 1920. With three exceptions, all prices were either
lower or stationary, as compared with the preceding month.
The exceptions were: Sheep and mutton, poultry and raw furs.
Some Increases Since 1920
Some dra-stic reductions have been made since the be-
ginning of 1920. For instance, the index number for raw
furs a year a.go was 1851.4, as compared with 492.1. There
are some prices, however, which are higher. These are:
Fresh fruits, both native and foreign; miscellaneous building
materials; crockery and glassware; kitchen furnishings. De-
tails of the February changes are as follows: —
(DEPAKTMBNT OF LABOUR
FIGURES)
Fodde
AND Fodders :
, Ontario
Western
All.
11. Animals and Meats :
Cattle and beef
Hogs and hog prodiic
Sheep and mutton-
Poultry.
All.
HI. Dairy Products..
IV, Fish :
Prepared fish . . . .
Fresh flsh
. Other Foods :
(a) Fruits and vegetable
Fresh fruits, native
Fresh fruits, foreign
(b) Miscellaneous gn
Breadstuffs
Tea, coffee, etc
All.
Woollens
Cottons
Silks
Jutes
Flax products.
Oilcloths
Hides and tallow
Leather
Boots and Shoes.
VIII. Metals and Impleue
Iron and steel
Other metals
Implements
IX. Fuel AND
Fuel
Lighting
X. Building Materia
Crockery and glassw
Table cutlery
Kitchen furnishings..
All .
.XII. Drugs ani
XIII. Miscellai
Raw Furs
Liquors a
Simdr
All .
Index Numbers
210.0
266 0
231.1
551.1
30B.6
2,S1.8
2IKI.5
254.9
■ilti.6
239.0
239.7
195 9
218. S
210 1
281 .1
202 1
238 2
*Jan.
1921
♦Feb.
1920
250.3
222.0
287.0
255.0
400 1
424 4
313 6
377.7
302.7
309.1
S'18.5
503.1
313.7
333.3
341 5
3(i0 4
277 5
459 0
350 7 '
333 1
211.7
235 5 1
115.5
117.9
149.1
139.3
239.0
209.6
•.;21.5
234.0
2.i9.9
210.1
276.1
202.1
244.3
243 4
241 S
157 2
.337.9
374 9
252.1
2b6.8
258.9
204. 0
158.1
389.1
461.3
252.1
298.3
156.2
218.1
257.8
206.4
156.2
212.7
!;57.8
21.5.3
237.4
161.0
271.0
220 9
250.9
166.4
271.7
226.5
286.4
262 3
276.8
309.6
265.3
291.9
432.6
255.1
316.4
336.4
450.3
258.8
370.1
317.1
436 5
4.36.5
IBt.I
286.5
.384.5
5U.0
161.1
286.5
381.5
213.4
222.1
492.1
296.8
191.3
3(H). 5
397.6
299.1
197.9
280.6
270.1
281.3
112 7
379 3
272.4
703.11
.513.1
264 7
419.4
110.3
102.1
113,2
133.1
124.3
144 0
86.1
205.1
118.4
101.7
128 5
107.2
136 4
105.6
116.6
91.0
124.1
447,9 ■ 145.4
1851.1
314.0
212 0
178 6
135.8
March 25, 1921
THE MONETARY TIMES
15
icanadian
Vpacific/
Bureau of
Canadian
Information
^^^
""FHE Canadian Pa-
cific Railway,
through its Bureau
of Canadian Infor-
mation, will furnish
you with the latest reliable information on
every phase of industrial and agricultural
development in Canada. In the Reference Li-
braries maintained at Chicago, New York and
Montreal are complete data on natural resources,
climate, labor, transportation, business openings,
etc., in Canada. Additional data is constantly
being added.
No charge or obligation attaches to this service.
Business organizations are invited to make use
of it.
Canadian Pacific Railway
Department of Colonization and Development
16S E. Ontario Si.
Chicago
335 Windsor Station
Montreal
1270 Broadwi
New York
rHoMEBANK'^CANADA-
PURPOSE OF BANKING
Every dollar deposited with the Bank is a dollar
applied towards financing home industries or bus-
iness enterprise. It is at once thrift and expert
finance to maintain a ravings account.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s-io
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
hkad office. weybl'rn. saskatchew a.\
Branches in Saskatchewan at
Weyburn. Yellow Grass, McTaggart, Halbrite, Midale
Griffin, Colgate. Paugnian, Radville. Assiniboia. Benson,
Verwood. Readlyn, Tribune, Expanse, Mossbank, Vantage,
Goodwater, Darmody, Sloughton, Osage, Creelman, Lew-
van, Froude and Ardill.
A GENERAL BANKING BUSINESS TRANSACTED
H. O POWFLL. General Manager
TH€ M€RCHANTS BANK
Head Office : Montreal. OF CANADA, Established 1 864.
Capital Paid-np, $10,029,622 Reserve Fund and Undivided Profits, $9,475,585
Total Deposits (31sl January, 1921) - - $152,211,354
Total Assets (31st January, 1921) - - $186,528,254
Board of DirtetorM :
SIR H. MONTAGU ALLAN Vice-President
Sir ¥. OrrOeh- Lewis, Bart.
Hon. C. C. Ballantynk
Farouhar Robertson
Geo. L. Cains
Alfred B. Evans
Thomas Ahearn
Lt.-Col. J. R. MooDiE
Hon. Lorne C. Webster
F. HOWAkD WILSON
E. W. Kneeland
(iORDON M. McGregor
General Manager D. C. Macarow
Supt. of Branches and Chief Inspector : T. E. Merrktt
General Supervisor - W. A. Meldrum
AN ALLIANCE FOR LIFE
Many of the large Corporations and Their banking connection is for life —
Business Houses who bank exclus- yet the only bonds that bind them to
ively with this institution have done this bank are the ties of service, pro-
SO since their beginning. gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 63 and 65 Wall Street : W. M. Ramsay and C. J. Crookall, Agenls
London, England, Office, 53 Cornhiil : J. B.Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
THE MONETARY TIMES
Volume 66,
WESTERN ASSURANCE CO.
Due to the unfavorable conditions encountered in the
marine field, the results attained by the Western Assurance
Co. in 1920 were not quite as good as in the previous year.
Marine premiums amounted to $1,743,645, while losses were
$1,755,181, and the total expenses of the department $2,148,-
492. The fire department shows much better results, how-
ever, premiums amounting to $3,527,612, with losses of $1,-
797,213, and total expenditure $3,282,456. Total income for
the year was $5,488,427, compared with $5,533,994 in 1919,
while expenditure wa^s $5,430,948, compared with $4,775,163.
A balance of $365,097 brought forward, the outcome of a suc-
cession of profitable years, enabled the company to pay the
preference dividends and distribute 6 per cent, on common
stock, and after the other necessary provisions, there was a
balance of $153,752.
In commenting on the year's business, the president, W.
B. Meikle, said: "We cannot forecast whether or not we will
pay the common dividend in September next. That must de-
pend upon how the business shows up in the summer months,
during which the most of our profit is made. The insurance
business is one of 'averages,' and must be run upon a wide
spread of business, and over a period of years before a true
estimate of results can be formed. In a varied business such
as ours, there aa-e many fields which we, with confidence, rely
upon for profit, and there are others where cycles of fat and
lean years are met with; 1920 has hurt us in only one de-
partment."
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended March 18, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
Date.
03 n
w
Mar. 18 6 17 4 0 5 2 0 0 0 34
Mar. 11 14 13 0 0 4 1 6 0 0 38 16
Mar. 4 5 12 0 2 1 2 9 0 0 31 16
Feb. 25 16 14 0 4 2 2 8 2 0 48 12
EXCHANGE QUOTATIONS
Quotations of exchange on European countries and the
United States as at March 23, 1921, with comparisons, are
given below. The Canadian figures are supplied by the
Imperial Bank of Canada-, while New York quotations are
given by the National City Co., Ltd., Toronto: — •
Can., Mar. 17. Can., Mar. 23. ' N.Y., Mar. 23.
London, cheque . . 447.00 444.50 391
France 8.00 7.93 6.98
Germany 1.84 1.85 1.62
Belgium 8.37 8.30 7.30
Italy 4.26 4.40 3.98
Switzerland 19.82 19.76 17.10
United States ... 14iia6 p. l^WialP--
BRITISH AMERICA ASSURANCE CO.
In general with other companies operating in the marine
insurance field, the experience of the British America Assur-
ance Co. in 1920 was unfortuante. Marine premiums amounted
to $579,631, as against losses of $1,136,694 and total expenses
of the department of $1,286,800. The result of the operation
of the fire, hail and automobile department was more favor-
able, the credit balance being $245,085. But, on the whole,
the company lost on operations for the year, the debit bal-
ance, after taking into consideration interest and r-ents,
amounting to $314,887. With the exception of 1914, last year
was the only set-back the company has had since 1908. From
December, 1908, to December 31, 1919, the total of the yearly
profits amounted to over $2,400,000, and the debit of 1920
operations must, of course, be set against this.
Commenting upon the conditions in the mai'ine field, the
president, W. B. Meikle, said: "The most annoying source of
loss has been the abnormal claims for damage through poor
packing and the thieving of goods, which went rampant over
many parts of the world. Various methods have been tried
to cure the evil, but it became evident that the government
and dock authorities must give better police pi-otection; that
the punishment meted out to those found guilty should be
severe and not influenced by the threats of the labor unions;
that the railroads and steamship companies should not evade
the loss or damage through negligence to merchandise whilst
in their care by all sorts of restricted bills of lading, and
that cover of the the marine policy should not extend beyond a
reasonable number of days after the goods were landed. So
far as our business was concerned, we found that we could
not wait any longer for marine underwriters to agree upon
united measures, and we cut out all marine insurance for
shippers whose business had proved unprofitable and retired
from such agencies as did not make the selection of risks
from the underwriter's point of view their primary thought
and duty."
By defeating the Northern Assurance on March 10 by
3 — 2 in overtime play, the team representing Robert Hamp-
son and Son, Ltd., won the championship of the Insurance
Hockey League, Montreal. These two teams at the close of
the regular schedule had each won seven and lost one, each
team having defeated the other by the mar-gin of one goal.
BUSINESS CONDITIONS
River conditions favor the early opening of navigation,
says R. G. Dun and Company's March 19 review of business
conditions in the Montreal district, but the Labrador ice
coming down this spring is said to be unusually heavy, and
to be badly blocking the entrance to the gulf. First sailings
of regular liners from Britain for this port are timed for
April 8 or 9. The break-up of the country roads has not
efl:ected general collections in this province, and Ontario re-
mittances are favorably spoken of, but there is room for
considerable improvement in northwestern payments. In the
grocery trade there is a steady consumptive movement.
Sugar refiners are all working to moderate capacity and
claim they should be getting advanced prices, but they all
remain on the same level, quoting 10% cents for standard
granulated. Corn syrup, starch and rice have been quoted
at lower figures of late, and further easing off seems to be
anticipated.
Regarding the Toronto district, it is pointed out that
settlement of wage disputes is being attempted in many
trades at present and a great deal depends upon the outcome
for even a semblance of prosperity in this country the coming
summer rests to a large extent on the harmonious working
together of labor and capital. Packing house employees are
said to be dissatisfied and a strike may be called that would
effect about 4,000 men. Express rates have become so high
that rapid delivery by this service is no longer worth while,
when the enormous cost is considered. Large establishments
are seriously contemplating reverting to freight as their
transportation bills mount out of proportion to the advantage
gained by express sei-vice. Trade still lags somewhat but
factories, etc., have recently taken on employees after an
extended period of idleness, and an increased buying capacity
should soon be evident. Industrial plants are showing more
activity from day to day; retail trade generally is also pick-
ing up, although the buying done at the wholesales continues
to be characterized by cautiousness, and this is noted in dry
goods where present prices are expected to rule for some
time. Woollen jobbers short of stock easily replace at very
reasonable figures, and there appears to be a healthier
demand.
March 25, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH
(ESTABLISHED 1SI71
PAID UP CAPITAL - ■ •
RESERVE FUND . - ■ -
RESERVE LIABILITY OF PROPRIETORS
AGGREGATE ASSETS 30th SEPT., 1920
4^lk.
WALES
$ 24,635,500.00
16,750,000.00
24,655,000.00
$ 66,061,000.00
$362,338,975.00
Sir JOHN KLSSELL KKENCH, K.IJ.E . Cieneral Manager
alian States. New Zealand. Fiji. Papua (New t'.uinca), and Lo
Wool and other Produce Credits arranged.
The Bank transacts every de
HEAD OFFICE: GEORGE STREET. SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2,
B.4.\K OF .\10.\THE.AL. ROYAL BANK CI" CANADA.
C. S. GUNN & COMPANY
REAL ESTATE, INSURANCE, RENTAL AGENTS
805 • Union Trust Building
WINNIPEG, MAN.
Members of Winnipeg Real Estate Exchange, Winnipeg Stock Exchange
Gborgb E
H Pbrcival El
A. Geofprbv Edwar
T. J. Macnamara
K. A. .MAPI'
. F.C.A.
W. Po.MCHnv ^
Oswald N- Hii
T. P. Gkccie
\V. A. LoRiMpr
H. EllWARDS. PC. A.
\V. HbriiertThoj
CiiARLKvE. Whit
J. L. At
M En
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO ..
CALGARY ..
VANCOUVER
WINNIPEG ..
MONTREAL
CORRESPONDENTS
HALIP'AX, N.S. ST. lOHN, N.B
LONDON. ENG. PARIS. FRANC!-
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK, U.S. A
ESTABLISHED I87'>
AUoway & Champion
Bankers and Brokers
Membera o( Winnipeg Stock Eichang
362 Main Street
Winnipeg
Slocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchange*
THE
TorotstoGeaeralTrusts
Corporation
DIVIDEND No. 99
I
Notice is hereby given that a dividend of Three
Per Cent. (3'^r) has been declared upon the Paid-up
Capital Stock of this Corporation for the quarter
ending March 31st, 1921, being at the rate of
TWELVE PER CENT. PER ANNUM,
and that the same will be payable on and after
Friday, the first day of April, 1921.
The Transfer Books of the Corporation will be
closed from Tuesday, the 15th day of March, until
Thursday, the 31st day of March, 1921, both days
inclusive.
By Order of the Board of Directors.
A. D. LANGMUIR.
General Manager.
Toronto, March 1st. 1921.
18
THE MONETARY TIMES
Volume 6G.
THE WHEAT POOL
Scheme Now Being Discussed Reveals Some Dissension Among
Western Farmers — The Question of Finance
By Angus Lyell
INTEREST in the wheat poll planned by the farmers in the
west continues. The topic is usually a live subject of de-
bate at all important agricultural gatherings. But al-
though the best minds of the United Grain Growers and the
Canadian Council of Agriculture have been planning ways
and means of making the project workable, the path to suc-
cess does not appear to be quite clear. At the convention of
the United Farmers of Alberta it was expected that the pres-
ident vi'ould elucidate matters, but about all that he did was
to urge caution, which was somewhat disappointing to the
rank and file. Even Mr. Crerar did not tell his hearers how
the scheme could become operative.
Nevertheless, most of the farmers' leaders are clamoring
for the co-operative marketing of wheat. A considerable
measure of success has been attained by the farmers in the
west in their mercantile efforts. The net profit of the United
Grain Growers for the year ending August 31 last was
$463,675.64, the turnover of the company, including that of
its subsidiary concerns, being about .$113,000,000. The Sas-
katchewan Co-Operative Elevator Company, another strong
concern, is also making substantial progress. The farmers'
political organizations are gaining in strength. "Why should
we not, then," ask some of the ambitious leaders, "market our
own wheat ? Let us combine and make a bold bid for the con-
trol of the trade."
Would Eliminate Competition
From pronouncements already made it would appear that
the kernel of the project is the elimination of competition. It
is recognized that this could not be obtained at once, but it is
calculated that farmers producing about half of the grain crop
would enter the combine. These would undertake to market
all of their crop through their own association for a period of
not less than five years. During this time a number of the
others might be gathered into the fold. If finally the bulk of
the farmers entered the combine, competition would be practi-
cally eliminated.
The project is one on which a hasty opinion should not be
given. If certain associations of farmers wish to combine for
tlie purpose of marketing their produce, they have a perfect
right to do so. In both California and Washington the fruit
growers have been marketing their product for some time
through a co-operative agency. Their efforts have been fairly
successful. They operate, however, under conditions somewhat
different from those which would be encountered by the
prairie farmers.
Essentials to Success
Perhaps the most vital factors in the success of the pro-
ject are: —
1. Co-operation and loyalty among the farmers themselves.
2. The difficulty of finacing the scheme in its initial stage.
3. The difficulty of obtaining and maintaining efficient organ-
ization and management.
The venture as already outlined embraces a scheme for
the marketing of at least half of the wheat crop, or some hun-
dred million bushels of wheat annually. Included in the pool
would be farmers from all over the prairie. The plan is to
have one and not several "pools." Is such a scheme workable ?
I have said that for the success of the project it is vital
that there should be co-operation and loyalty among the farm-
ers themselves. I am afraid that this cannot be obtained if
the venture is to embrace producers in all of the prairie prov-
inces. There are signs of suspicion, even distrust, among some
of the groups already. It has been openly whispered that a
separate movement is being planned in Saskatchewan. Some
of the Alberta "locals" have been demanding an explanation of
this. If there is to be one organization only for the marketing
of the wheat, why two organizations for the supply of mer-
chandise? Why two powerful, yet separate, elevator com-
panies ? The Grain Growers' Grain Company of Manitoba and
the Alberta Co-Operative Elevator Company combined in 1917
under the name of the United Grain Growers. Why does the
Saskatchewan Co-Operative Elevator Company stand aloof?
And if in the matter of elevator service and the supply of
farm equipment and merchandise there cannot be complete
co-operation and combination, may we expect such in a gigan-
tic scheme for the marketing of wheat ?
Relation to Politics
In the political field there are signs which indicate the
creation of conditions which may tend to disruption. The
cleavage on fundamental matters of policy between Mr. H. W.
Wood, as president and leader of the United Farmers of Al-
berta, and the Hon. T. A. Crerar, the federal leader of the
farmers' party, is well known. Mr. Wood stands for the
closed door and group or class representation, whereas Mr.
Crerar and Mr. Drury would admit to the party all those who
broadly stand for what they term progressive legislation. To-
day this cleavage may be adroitly covered, but before long it
will assert itself. As a matter of fact, Mr. William Irvine's
book, "The Farmers in Politics," which was published the
other day, is a defence of the group idea in politics. In it he
states that "the United Farmers originated as an industrial
group" and that "apart from the group idea the farmers'
movement has no meaning and no future." Before long the
strength of the ties which bind together the several units of
the farmers' party will be tested.
I doubt if it is possible for a majority of the farmers to
form and maintain one group for any length of time. But
assuming that half of the prairie farmers can band themselves
together for the co-operative marketing of their wheat and
that they can raise sufficient capital for the initial stage of the
venture, what can they accomplish?
We are told that the intention is not to endeavor to main-
tain high prices for wheat used for home consumption, but to
get the best price for the surplus or exportable part of the
crop. Now this price is determined largely by the competi-
tion of other nations, by international supply and demand.
The farmers contend that at present they are largely at the
mercy of the grain speculators, since necessity often compels
them to sell in the fall when prices are generally low. They
desire a rearrangement of things so that they may not have to
do this; they plan to eliminate the middlemen and jobbers.
Banks Might Be Formed
It is obvious, I think, that an important part of the scheme
would be the formation of agricultural banks. How other-
wise could credits be arranged for the numerous producers
who would decide to delay the sale of their wheat until the
spring? If the company which had control of the marketing
of the crop had to undertake the financing of its members over
perhaps a considerable part of the year, it would require to be
capitalized on a huge basis. If the farmers get control of
the legislatures in the prairie provinces one of the fii-st steps
they will take, as far as I can judge, will be the establishment
of agricultural banks. Such banks appear essential to any
concerted efforts they may make to establish their economic
theories.
I come now to the matter of obtaining and maintaining
efficient organization and management. While the necessary
membership and capital for the co-operative marketing of the
wheat crop might be obtained, the project could not succeed
without efficient control. Can the farmers attract to their
scheme men big enough to handle it? This is a point which
should be very carefully pondered. The average farmer knows
quite well that he is ignorant of the way in which a matter of
this kind should be conducted. And he is beginning to per-
ceive that his leaders are little better informed. Mr. H. W.
Wood and his fellows talk but in generalities. They evade
specific issues.
By all means let us have a wheat pool if it is going to
usher in better conditions for the community in general. Let
us eliminate the grain brokers, middlemen and jobbers if we
March 25, 1921
THE MONETARY TIMES
Is Your Property
Still Unsold— Still To Let
We will sell or rent it for you.
\A e can do it for you. because we are doing it every day for
others. Collection of Rents. Efficient Management of Apartment
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ender our
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For the service we renaer our lees are smaii- c ,
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what we do. how we do it and what we charge.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS
Winnipeg TORONTO London. Eng.
The Permanent Executor
A MAN by bccomint! an executor
•^ still has his private business,
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town— for a business trip, or a
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$ 1 .OOO OOO TORONTO
Manager, Ontario Branch: A. i:. llcssin
Your
Executor
You may have appointed a personal
friend. If so, have you considered these
questions :
Has he thorough business experience?
Does he know the law governing
trustees ?
Has he plenty of spare time to devote
to your affairs ?
May he die before his duties to your
estate are complete?
Have you considered the advantages of
appointing this Company your executor?
Write for our Bool(lets
explaining our service.
National Trust Company
I.'mited
Paid-up Capital and Reserve
Assets under Administratfon ovf
18-22 KING STREET EAST
$4,000,000
$94,000,000
TORONTO
The iiuparli.iliiy of the acts of a TRUST COMPANY and its fre.iloni
from improper influences are some of the adv.intages offered in
The Management of Estates
\\\- will 'j^l.uWy il'.s
tliis matter with von
CAPITAL, ISSUED AND SUBSCRIBED
PAID-I'P CAPITAL AND RESERVK...
.Si. 171, 700. 00
. 1.172.000.00
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OFKICK: WINNIPEG, CAN.
BRANCHES
Saskatchewan General Trusts
Corporation, Limited
Head (Hlice: Regina, Sask
Executor AdminiMtrator Assignee Trustee
Special attention Jiven Mortgage Investments, ColleclioDS,
Management of Properties for Absentees and
all other agency business.
BOAKIt OF l>IItECTOK»:
W T. MOLLARD. President G. H. BARR. K C. Vice-President
H.B.Sampson K.C. A. L. Gordon. KG. J. A M.Patrick KC
David Low, M.U W. H. Duncan J.A. McBridc
Chas. Willoughby William Wilson
E. E. .MURPHY. General Manager
Official Administrator lor the Judicial District of Weyburn
(Trustee under Bankruptcy Act)
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
The Security Trust Company, Limited
Head Office - - Calgary, Alberta
Liquidator, Trustee, Receiver, Stock and Bond Brokers,
Administrator, Executor. General Financial Agents.
W .M CO.\N \CHi;i; I'lcs. anJ .\lMna.«iii>; Director
Providing for Education
In times of prosperity make certain that tlie education
of your children will be provided for in case of a reversal of
fortune. By placing a trust fund with us for investment,
an income can be provided to begin at any time and be
administered under any conditions you see fit to incorporate
in the agreement. Write us for particulars.
Chartered Trust and Executor Company
46 KING STREET WEST, TORONTO
HON. W A. CHARLTON. .MP.,
President.
JOHN J. GIBSON. Managing Directo
20
THE MONETARY TIMES
Volume 66
can get on better without them. But let the advocates of the
scheme cease making random and sweeping statements, often
not based on facts, and get down to the elemental things. And
they would bo well advised to obtain competent advice from
outside sources before launching on a gigantic project such as
that they plan.
ONTARIO LOAN COMPANIES 1920 FIGURES
Assets Totalled $211,233.110— Recent Changes in Supervision
and Inspection— The Deposit Situation
A SUMMARY of the assets and liabilities at the end of
1920 of forty-two loan corporations registered in the
province of Ontario has been issued by the Registrar of Loan
Corporations, showing total assets of $211,233,110. The
figures are as follows: —
ASSETS.
Office premises $ 3,995,464
Real estate held for sale 6,598,563
Mortgages on real estate 137,387,676
Loans on stocks and bonds 5,086,361
United Kingdom, Dominion of Canada, and pro-
vinces of Canada securities 13,526,778
Canadian municipals, school districts and rural
telephone debentures 12,399,331
Other bonds, debentures and debenture stocks. . . 6,310,972
Stocks 12,149,604
Cash in banks and other institutions 12,517,523
Other assets 1,250,834
$211,223,110
LIABILITIES.
To the Public-
Debentures and debenture stock . . $94,363,875
Deposits 29,514,893
Money borrowed 1,471,498
Other liabilities 2,858,094
$128,208,361
To Shareholders —
Capital stock $46,517,600
Reserve funds 32,527,876
Dividends unpaid 1,182,413
Profit and loss 2,786,858
83,014,748
$211,223,110
In submitting the detailed report for 1919 recently the
Registrar discussed methods of examining loan and trust
companies, the form of their annual statement to share-
holders, and their deposit business. It is pointed out that a
new form of return, unifoi-m vsrith that to be used by the
Dominion, has been agreed upon. A standard form for the
annual statements to shareholders and depositors has also
been arrived at. It is also suggested that legislation should
be enacted to provide for the regular inspection of loan and
trust companies of the province.
Deposit Business
Regarding deposits, the following is said: —
"Repayments of sterling debentures during the last two
years have been substantial and the acquisition of new money
from Great Britain and European countries practically nil.
Because of the high rates of interest paid by Dominion and
provincial government and municipal bonds, the companies
have been able to increase their domestic borrowings on de-
bentures only slightly. Moneys received on deposit have
been substantially increased; in the case of three of the
smaller companies the limit of borrowing on deposits allowed
by statute has already been reached and a number of other
companies are nearing a similar embarrassment. The de-
mand for mortgage loans is also increasing for urban build-
iiiy and farm loan purposes as the return to normal con-
ditions proceeds. So much is this the case that it has be-
come a matter of real concern to the public as well as to
the companies that the supply of moneys available for such
loans should receive large increment. With the closing of
the British and foreign markets to the loan companies and
the limited sale of loan company debentures locally, the only
available source of increase in funds for this purpose is the
supply of moneys received through deposits. It is entirely
to be expected, therefore, that the companies will ask to have
the present limit of deposits increased if this normal develop-
ment is to be provided for.
"Some agents for British investors in loan company de-
bentures have for many years looked coldly upon the exten-
sion of the deposit business of Canadian loan companies, for
the reason that the Canadian depositor is believed to be in
a preferred position because of his right to withdraw his
deposit moneys on short notice. Their influence has been
sufficient to induce some companies who have access to the
British money market not to exercise their right to take
deposits. The fear is now expressed by some Canadian com-
panies that any extension of the present statutory limit of
deposits might result in a withdrawal of British money now
invested in loan companies' debentures. Other British agents
hold a directly contrary view. They state that the opinion
above quoted has long since been disproved, and the present
disposition of the British investor is to regard the increase
in deposits of Canadian companies as an indication of local
confidence in the company receiving them, and therefore an
additional inducement to the British investor.
"Subject to the settlement of that disputed question in a
manner which will maintain the confidence of British in-
vestors the department believes that from the standpoint of
the public interest the only question which can be raised as
to the desirability of extending the present limit of deposits
is whether or not the deposit features of the loan company
business are adequately safeguai-ded. It is apparent that the
necessary safeguards are two: First — The investment of the
moneys of the company in the best possible form of security.
Second — The maintenance of a sufficient amount of cash and
readily marketable or liquid securities to meet any sudden
demand which may be made upon the company for withdrawal
of deposit moneys.
"The department feels justified in recommending to you
that if these two features ai-e amply protected a reasonable
extension of the limit of money which may be received on
deposit by loan corporations might safely be allowed. If the
deposit business of loan companies increases, a double ad-
vantage to the public will accrue, namely, a greater supply
of mortage loan moneys at moderate cost and a better rate
of interest on savings deposits.
Deposit Business of Trust Companies
"In the case of trust companies, the transaction of the
receiving of moneys on deposit is quite different from that
in the case of loan companies. With a loan company the
relationship of the company to the depositor is the ordinary
relationship of debtor and creditor, while on the other hand the
relationship of a trust company to its depositor is the re-
lationship of trustee to 'cestui que trust." This latter rela-
tionship involves the limitation of the character of the in-
vestment into which the moneys of the depositors may be
placed to the class of security definitely authorized by statute
for trust funds, and it involves also a definite ear-marking
and setting aside of those securities for the benefit of the
depositors as distingui.shed from any other class of claimant
or creditor of the trust company.
"The present Ontario act, however, has not made clear
the intention to distinguish the borrowing of money by tak-
ing deposits (which is forbidden by the statute) from the
receiving of moneys in trust for investment (which right is
given by the statute). It is in the interests of the public
and the companies that the intention of the act should be
made plain, and the department respectfully recommends that
the legislature should be asked to clarify this situation."
March 25, 1921
THE MONETARY TIMES
21
Your friend and
The Canada Trust Company
Should you wish to have a friend act as executor
without burdening him with book-work and other
details this can be arranged by naming The Canada
Trust Company co-executor.
Competent and careful accounting is essential to
the proper management of your estate.
The Canada Trust Coi'^vpany
" The Executor for Your Estate. '
London, Toronto. Windsor, Chatham. St. Thomas, Ontario ;
Winnipec, Man, ; Regina. ^ask. ; Edmonton. Alta.
CANADA PERMANENT
MORTGAGE CORPORATION
QUARTERLY DIVIDEND
Notice is hereby given that a Dividend of THREE
PER CENT, for the current quarter, being at the rate of
TWELVE PER CENT. PER ANNUM
on the paid-up Capital Stock of the Corporation, has been
declared, and that the same will be payable
FRIDAY, THE FIRST DAY OF APRIL
next, to Shareholders of record at the close of business on
the Fifteenth day of March.
By order of the Board,
GEO. H SMITH. Assistant General Manager.
Toronto, February 23rd. 1921
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
.Masonic Temple Uuildint!. London. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T, H, PLRDO.M, K.C . President NATHAMHL .MILLS. .Manager
London and Canadian Loan and Agency Co., Limited
BsTARl.isnen 1873 51 VO.VUK ttT., TOBONTO
Paid-up Capital, SL250,000 Reserve Fund, *l,l)O().0O<l Total Aisets. ?S,0h-.2.^i
Debenlnreti issued, one hundred dollars and upwards, one to five years.
Best current rates. Interest payable half-yearly. These Debentures are an
Authorized Trustee Investment, Mortgage Loans made in Ontario. Mani-
toba and Saskatchewan.
WILLIAM WEDD, Secretary. \V I! WADSWORTH. ManaBer.
The Ontario Loan & Debenture Company
DIVIDEND NO. 135.
Notice is hereby given that a QU.'\KTI-:KI,Y DIVIDEND
of 2!'2 per cent, for the three months ending 31st
March, 1921 (BKING AT THK R.'\TK OF TEN PER
CP;NT. PER ANXITM) has been declared on the paid-up
capital stock of this Company and will be payable at the
Company's Office, London, Ontario, on and after the )st
.^pril next to Shareholders of record of the ISth March.
By order of the Board.
A, M. SMART,
Manager.
London, Canada, 1st March, 1921
(~\VER 200 Corporations,
^'^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG. Man.
THE TORONTO MORTGAGE COMPANY
Quarterly Dividend
Notice is hereby given that a Dividend of Two and one.quarter per
cent.. l>eing at the rate of Nine per cent, per annum, upon the paid-up
Capital Stock of this Company, has been declared for the current
Quarter, and that the same will be payable on and after lut April.
liWI. to Shareholders of record on the bool<s of the Company at the
close of business on ISth inst. By order of the Board.
Toronto, .Ird March, in21. WALTER GILLKSPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any banU in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office
Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities,
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inquiries Invited
erneral .nanager Llriit.-<'i>l. Ci. II. DORRELL
Canadian Guaranty Trust Company
HELi\D OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan,
Branch OKice
Swift Current, Saskatchewan
JOHN R LITTLE. Managing Director
22
THE MONETARY TIMES
Volume 66.
Loan compa'nies which take deposits number 30, and
their financial position is indicated by the following figures
as at December 31, 1919: —
Deposits $ 26,257,746
Debentures 48,860,384
Other liabilities 1,300,099
Total $ 76,418,231
Capital $ 32,765,275
Reserves 22,578,840
Total $ 55,344,115
Real estate and mortgages | 88,659,260
Stocks, bonds and debentures 32,174,614
Cash in banks 5,601,429
Other assets 5,327,042
Total $131,762,347
MINERAL PRODUCTION INCREASED IN 1920
More Copper, Gold, Iron, Nickel and Zinc Produced Than in
1919 — Reduction in Output of Lead and Silver
MINERAL production in Canada in 1920 showed an in-
crease, and the values, in spite of declines in prices,
are generally higher. This is shown in a preliminary re-
port of the Department of Mines. There has been a wide
range in price of many metals and mineral products during-
the past six or seven years and the continuation of high
prices for many products has of course resulted in greatly
increasing the total value of the mineral production, even
when the actual quantities of metals or minerals obtained
might be decreasing. For instance, the average price of coal
at the mine has increased from $2.49 in 1913 to $4.65 in
1920, so that the same tonnage of coal as was produced in
1913, viz. 15,012,178 tons would have a value in 1920 greater
by over $32,000,000 than was placed upon it in 1913.
Estimates of the total probable value of the mineral
production of Canada during 1920 made on the first of
January last, were short about 8 per cent, of the prelimin-
ary figures now available. Suflicient allowance had not been
made for the increased production and increased value of
cement, clay, quarry and other similar structural material
products. The coal mining industry too had responded more
extensively, and at higher values than had been estimated,
to the heavy demand for fuel.
The total estimated value of the metal and mineral pro-
duction in 1920 was $217,775,080, which is greater than the
total value reached during any preceding year. Compared
with the production in 1919 valued at $176,686,390, an in-
crease of $41,088,690 or 23.3 per cent, is shown, while com-
pared with 1918 the previous maximum year the increase
was $6,473,183 or 3 per cent.
A Wrong Impression
The evidence toward the close of the year of economic
depressing, falling prices, restriction or complete cessation
of operation at numerous points tended to monopolize the
public mind, and to divert attention from the fact that
Canada's mining industry during 1920 had furnished an
output, the value of which was greater than had been at-
tained in any previous year.
The metallic production which in 1918 was valued at
$114,549,152 and fell in 1919 to $73,262,793 has increased in
1920 to $77,236,370. The metallic production is still less
m total value than that reached during each of the vears
1916, 1917 a.nd 1918.
The total value of the non-metallic production including
clay and quarry products in 1918 was $96,752,745, which was
increased in 1919 to $103,423,507, and has now again been
increased in 1920 to $140,538,710. Although about $23,000,-
000 of this increase is due to coal alone, about $10,000,000 to
the increased production of cement, clay and quarry pro-
ducts, there is evidence of a remarkable grovrth and develop-
ment in the exploitation of Canadian non-metallic mineral
resources.
Gold Output Maintained
The past year has shown a quick recovery in the pro-
duction of copper, nickel, and zinc amongst the metals and
in the production of coal and many other non-metallic pro-
ducts. Gold production has continued to increase during
each of the past two years, though the increment has been
very small, and Canada occupies an almost unique position
in being perhaps the only gold producing country which has
not shown a serious falling off in the production of this
metal. In the production of zinc, asbestos and coal the
highest pinnacle of production has been reached during the
year just closed. True it is that some products such as
graphite, magnesite and pyrites have apparently not been in
strong demand, yet the production of these as well as of
chromite, gypsum, fluorspar, mica and salt have not only
been well maintained but have been materially increased,
while the production of feldspar has been more than doubled.
Shortage of fuel throughout the greater part of the year
in central Canada and insufficient transportation facilities
have tended to restrict shipments. The production of lime
and cement was seriously affected by the fuel shortage, while
car shortage restricted, or hampered the shipments of coal,
asbestos, feldspar, and other products. In many camps labor
was none too plentiful and wages for the most part were
maintaine<l at the highest levels.
It is probable that in the production of metals the re-
covery to higher output levels has been too rapid. With the
exception of silver, metal prices were well maintained
throughout the first nine months of the year, copper holding
during this period at slightly above the average of the
previous year, lead at about 50 per cent, above the average
of 1919, and zinc at 30 per cent, in excess of the previous
year's average.
A Fall in Prices
Toward the end of the year, however, market conditions
appeared to indicate the accumulation of excessive stocks,
and the crash in metal prices during October, November and
December showed the desire of holders to unload. The fall
in silver prices began in January and was accelerated in
October.
The severe price decline has resulted in the recent clos-
ing of a number of mining operations with the consequent
labor unemployment involved. Some of these must perforce
remain closed or work at part capacity until exhaustion of
accumulated stocks restores the market demand, or higher
prices, or until the operators are able to I'educe costs of
production to the point of successfully meeting prevailing
prices.
It is not intended to discuss here the probable effect
of the year end price decline and economic depression upon
the mineral output during the coming year, but the hope may
be expressed that it will rapidly be followed by an indus-
trial activity ba-sed upon more healthy conditions of price
and profit. While Canada has her domestic problems in
respect to supplies of iron and petroleum and distribution
of coal, the great basic factors of her enormous mineralized
areas, her great known resources in coal, nickel, copper,
gold, zinc, asbestos, and other metals and products too num-
erous to specify, and her infinitely greater latent possibilities
should never be lost sight of. These will continue to form
the basis of industry and of national development ever grow-
ing in extent and accelerated with increasing knowledge of
better methods of recovery and use.
The Confederated Investment Corporation, Ltd., fiscal
agents for Canada-Metropolitan Securities Corporation, Ltd.,
have recently extended their operations to Ottawa and Bos-
ton, opening up oflices in both cities. The Canada-Metropoli-
tan specializes in automobile financing.
March 25, 1921
THE MONETARY TIMES
MlBuralarFroof
\^ULT Lock
Foiled !
With the spoils almost within his grasp. The
combination punched out. The handle
wrenched off. The heavy vault door burned
through. Still the bolts will not shoot back.
The door will not open. Foiled— and forced
to leave empty handed.
This is the invariable experience of any
burglar who attempts to rob a vault equipped
with the Dillon Automatic Re-Locking Vault
Lock. A device that is absolutely Burglar
Proof and assures complete protection,
particularly for valuable papers that cannot
be replaced.
The outstanding feature of the Dillon Locking
Device is that the locking bolts on vault doors
are held intact and never move from their
position when the combination has been
completely destroyed either by punching,
blowing or burning out with gases.
Over 2500 banks are now equipped with Dillon
equipment. Every case where it has been put
to the test it has foiled the "would be" robber.
Write, on your business letter head, for complete
information and tve will arrange for a private
demonstration to prove its efficiency.
ARTHUR Gravelle & SoNs. 212 Plaza Bldg., Ottawa, Ont.
Sole Canadian Distributors for
DILLON Lock Works, Fort Dodge, Iowa.
AI.SO MAKERS OF ELECTRICAL PROTECTIVE
EQUIPMENT FOR EVERY BANK NEED.
496
THE MONETARY TIMES
Exports Again Decline in Februrary
All Accounts Showed Reductions, but the Most Notable was in Agricultural,
Vegetable and Animal Products— Imports Were Almost Stationery, and Thus,
for the First Time in Many Months, an Unfavorable Balance Was Registered
A NOTHER large drop in saJes of agricultural, vegetable
■i»- and animal products contributed to a i-eduction of about
!fl5,()75,000 in the February exports. Every account was
lower than in the previous month, but the above mentioned
were the most notable. As compared with February a year
ago all exports show declines, among which animal products,
textiles, iron and steel and miscellaneous products, are con-
spicuous. Inquiries for our lumber, pulp and paper have be-
come less active, and this is reflected in a slight decline in
exports of these products. The market abroad for Canadian
niea.ts is indifferent, but in the case of other animal products,
such as butter and cheese, the volume of sales has been well
maintained.
Turning to the other side of the balance sheet shows that
imports did not fall off to the same degree as exports, &nd
thus, for the first time in many months, an adverse balance
of a few millions was registered. The changes for the montli
were not important, the net decline amounting to but $300,000.
There is now but one month to the close of the fiscal
year, and the unfavorable balance stands at about $26,500,-
000. It is unlikely that this will be overcome, but when it
is considered that at the end of September last there was
a balance against Canada of some $164,000,000, the result
is not altogether unfavorable. The details of the February
trade statement, together with the figures for eleven months,
as prepared by the Department of Customs, follows: —
nirOKTS ENTEKED FOR HOME CONSITMFTIO.V
Agricultural and vegetable products, mainly foods
Agricultural and vegetable products, other than foods.
Animals and animal products
Fibres, textiles and textile products
Chemicals and chemical products
Iron and steel, and manufactures thereof
Ores, metals and metal manufactures, other than iron
Non-metallic minerals and products
Wood, wood products, paper and manufactures '.'.
Miscellaneous
Total.
Duty collected.
Month of February
1920 1921
3,379.859
5,049.257
2.S67.072
7,929.670
985,438
1,792,151
1.850.254
4.364,694
1.218.930
1,185,553
30.322,878
Dutiable
8,980,019
3.588.446
4.018,701
15.850.109
1,437,882
12,184,566
2.472.563
4.110.013
1,833,131
2,698.54,S
57,173,978
Free
1,948.755
2,210,303
880,915
2,262,066
891,470
2,175,389
681,143
S.498.13I
1,202,870
1,831,443
19,582,485
Eleven months ending February
32,437,563
40,775.250
35,366.071
64,006.724
10.403.062
27,765.209
16,890,183
54.372.877
15,946.734
24.080,902
322,044,580
110.200,789
22,969,695
48,005,613
131,609,619
15,795.411
135.061,903
28.416.260
54.444,007
21,816.057
31.654,870
599,974.224
36,242,755
3S,546„531
24,267.390
70,105,317
15,566,112
41.416.726
14.551,294
76.829.549
21,899.609
33,789.902
370,215,185
117,178,003
43,174.485
32.874,360
160,861.291
18.502.020
188,698.590
37,055.971
113.479,309
31,637,544
33,881,469
777.343,042
Agricultural and vegetable products, mainly foods
Agricu tural and vegetable products, other than foods
Animals and animal products
Fibres, textiles and textile products ......... ..... ,
Chemicals and chemical products
Iron and steel and manufactures thereof
Ores, metals and metal manufactures, other than ironandsteei;
Non-metahc minerals and products
Wood, wood products, paper and manufactures
Miscellaneous
Total . .
Month of February
Domestic Foreign
),066,583
!,303,080
?,650,176
1,798,912
1,658,645
j.274,583
1,959.328
1,810,492
3,858.979
i.274.412
154.780
54.923
174,134
184,344
87,232
2.744,638
121.749
14.0;6
24.666
141.606
3.702,148
27,418,615
68.954
988,618
16,943
10,519,301
94,326
976,733
207,288
966.049
47,700
3.821.966
332.592
2.882,646
74.729
1 .687,633
37.603
15,000,909
38,323
975,268
158,994
Eleven months ending February
3.59,966,728
30,012,205
295,8119.029
30.484.664
19.884.163
73.784,007
48,1,36,548
27.436.510
190,982.916
69,862,469
.146,359,239
4,620,844
I. ,509.025
6.312,387
3.643,109
3.415.563
14.310,824
2.517,471
568.285
460.268
4.722.685
s
432.644.208
23.140,223
180.437,488
18,0,S7,824
17.668,934
72.479.173
43.330,081
37.492.005
264.748,022
31.043.315
42.080.461 1,121,071.273
1.291.392
328,429
1.334,078
2,471.924
979.687
8.303.161
777.251
846,71,<:
510.960
3,045.371
19.888,971
Grand total. Canadian trade
KECAPITUL-IlTIOX
Month of February
Eleven months ending Feb.
2.28S,5!8.<7I
March 25, 1921
the; monetary times
25
BRITISH lAMERIC A
ASSURANCE COMPANY
(INCORPORATED A.D. 1833)
Fire, Marine, Automobile and Hail Insurance
Statement as of December 31st, 1920
Assets ? 4,406,208.50
Reinsurance Reserve upon Canadian Government Standard $2,002,998.55
Sundry Liabilities, including Outstanding Losses and Special Reserves
of $200,000 to cover unreported losses, taxes, etc 1,584,990.46
3,587,989.01
SURPLUS TO POLICYHOLDERS
CAPITAL STOCK authorized
" " subscribed
paid up (Preference)
" (Common)
$ 818,219.49
$ 3,000,000.00
1,400,000.00
550,000.00
850,000.00
LOSSES PAID SINCE ORGANIZATION (A.D. 1833) OVER
$50,000,000.00
W. B. MEIKLE, President
SIR JOHN AIRD
ROBERT BICKERDIKE (Montreal)
LT.-COL. HENRY BROCK
ALFRED COOPER (London, Eng.)
H. C. COX
JOHN H. FULTON (New York)
D. B. HANNA
Board of Directors
DR. JOHN HOSKIN, K.C., Vice-President
E. HAY
MILLER LASH
GEORGE A. MORROW
LT.-COL. THE HON. FREDERIC NICHOLLS
BRIG.-GEN. SIR HENRY PELLATT. C.V.O.
E. R. WOOD
Board at London, Eng.
LORD CABLE
ALFRED COOPER, Chairman
SIR CHARLES JOHNSTON, Bart.
British and Foreign Offices: 14 Cornhill, London, B.C.
W. A. MILES, Manager
Head Offices: British America Assurance Buildings
Cor. Front and Scott Streets, Toronto
W. B. MEIKLE, General Manager
;;'iiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiii
E. F. GARROW, Secretary
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
498
26
THE MONETARY TIMES
Volume 66.
INDUSTRIAL INSURANCE*
Greatest Opportunity for Agency is in This Field — How
Business May be Obtained and Kept
By Alfred W. McLeod
Sew Westminister, B.C.
INDUSTRIAL insurance can be made the most important
source of income to any agency. The value of the indi-
vidual risks are the largest, and they are less likely to be
conti-olled by loan or other financial interests, while the class,
as a whole, is the favorite target for the mutuals, recip-
rocals, outside brokers, and last, but not least, the big city
agents.
In the past few years the insurance on many of the
large lumber plants, as well as other industrial risks, have
been lost to the local agents through their own fault. You
will say this was not always so, as the companies sometimes
declined to accept this hazardous class of risk; but again I
say, this was their fault, for had they been fully alive to
the responsibilities of their position, they would have seen
that the plants referred to were properly looked after frohi
an insurance risk point of view, for if this were done they
would have pi-oved profitable to their companies, as they have
to those who did secure the risks.
The keynote, to my mind, in dealing with this class of
insurance, is ser^^ce — service to the insured, service to the
companies and service to ourselves — a threefold service,
wherein each is interlocking, the result being satisfaction to
the assured, profitable business for the companies and a
handsome income for the agent.
Must Keep Informed
The first and most important point is to study, not in a
haphazard fashion, but thoroughly, the rating schedules, in-
cluding deficiency charges and protection credits, as well as
the language and meaning of all coverings and clauses in
common use on industrial plants. This knowledge may be
gathered in various ways, and, if we are alive and aggres-
sive and willing to take the trouble, no difficulty will be ex-
perienced. One of the best sources of irjformation is some
good insurance paper. Don't say, "I'm too busy," "I've no
time to read," for in taking that attitude you are not fair
to your company, your clients or yourselves. The insurance
paper is published for the busy insurance man. It is intended
to save him time, and to give him more latitude and oppor-
tunity for the development of his business. The rightly con-
ducted periodical for the insurance agent solves many of his
problems and inspires him to do his best, and encourages
him when he gets discouraged. Insurance rates on industrial
plants, as we know, are largely made up of numerous charges
for deficiencies, while they are also affected by many credits
which may be secured for details of protection.
Advise Customer Fully
We should be able to tell a present or prospective client
immediately the exact amount of any charge or credit that
affects his plant. We should not only be able to point out
where the larger savings can be made, but should be able
to give intelligent advice right down to the last cent, as a
few cents in the rates mean many dollars in large industries,
and those in control of plants are always keen to make every
saving consistent with security, while at the same time the
agent is not only being of service to his client, but also to
his company, which is more pleased to write the improved
risk at a reduced rate, and at the same time he often makes
himself indispensable to the assured.
The owners of large plants prefer to place their insur-
ance with the man who knows his business, and in many
instances lines are placed with outside or travelling brokers,
*An address before the British Columbia Fire Insurance
Agents' Conference.
who are able to serve him in this respect better than agents
who are on the spot.
Some of us criticize the office of the Board of Under-
writers because their inspectors do not go to the assured and
point out the deficiencies or lack of protection which raises
their rates, but it is the duty of the agent to get the infor-
mation and pass it on to the client to let them know we are
looking after their interests.
Knowing the deficiency charges and protection credits,
though, is only a portion of the service we should be able
to give. We should also thoroughly understand the numerous
forms and clauses, such as specific and blanket coverings,
co-insurance, average, prejudice, adjusters, work and ma-
terials, exceptions, wai'ranty, variations, occupancy, noon,
and many other clauses which are or may be used for the
protection of the assured, and to give the companies a clearer
understanding of the risk they are accepting.
New Business and Renewals
We should see that there is never any doubt in the mind
of the assured that the property is covered for the amount
specified and from the date desired. This refers particularly
to placing of new business and renewals of expiring policies.
I have heard many criticisms of agents who have not de-
livered renewal policies before the old ones expired, or who
had not given any covers in the case of new business for
several days, and even weeks, after instructions were given
to place same. The completion of policies, we know, are
often delayed owing to new forms being drawn or a revision
in rates, and we may know the insurance is in force, but
the assured feels safer if we immediately send him in writing
a statement of how the insurance is covered, giving the
names of the companies and the amount in each. Another
point along this line is the giving of full information in
writing to our companies concerning new industrial risks we
are placing, or changes in conditions concerning plants we
have already covered. This will save much correspondence
and many cancellations and replacing of policies to any
extent, many of which are due to lack of information accom-
panying daily reports.
Changing values and rising and falling prices should
always be kept in mind, while extensions and additions to
plants on which we can-y insurance also affect the interest
of the assured. We should keep in touch with these condi-
tions, making regular inspections, and be able to advise our
clients intelligently on this phase of our covering.
Losses Show Insufficient Coverage
Experience shows that in oer 50 per cent, of the total
loss adjustments the owners have sustained serious mone-
tary loss because of insufficient coverage, in some cases
causing insolvency.
Proper appraisals should be made before a fire, and we
should know a representative of a good appraisal company,
and be able to tell our clients where they are able to have
this work done.
The protection we oft'er or give should be beyond ques-
tion as to responsibility. We should, however, not only know
the standing of the companies we represent, but should also
keep on hand information concerning the position of all in-
surance institutions transacting business in British Columbia,
and should be able to give our clients any infonnation they
may wish along this line. We should not i-un down other
cornpanies just because we do not represent them, and without
regard to their standing, this will react to our loss.
In making our service as near 100 per cent, efficient as
possible, we are, to my mind, performing a great service to
the countr>' and the nation at large in reducing the great fire
waste in Canada. This means dollars to every citizen. We
should know our business so well and be so cram full of
enthusiasm about it as to forget to use arguments as to why
insurance should be can-ied, and confine ourselves to giving
actual, definite information, with the assurance and certainty
that familiarity with our subject is sure to bring.
March 25, 1921 THE MONETARY TIMES
I Western Assurance Company |
I (INCORPORATED A.D. 1831) |
I Fire, Marine, Tornado, Automobile, Explosion, |
I Riots, Strikes and Civil Commotions |
I and Hail Insurance |
I Statement as of December 31st, 1920 |
I Fire Premiums for 1920 $3,527,612.86 ■
1 Marine Premiums for 1920 . . . : 1,743,645.32 1
i $ 5,271,258.18 g
I Interests and Rents 217,169.15 g
I $ 5,488,427.33 |
1 Fire Losses $1,797,213.21 |
1 Agents' Commissions 711,773.15 1
i Taxes 147,348.17 |
§ General Expenses 626,121.78 S
i $3,282,456.31 |
I Marine Losses $1,755,181.94 §
B Agents' Commissions 189,664.54 B
■ ■ Taxes 66,040.44 =
1 General Expenses 137,605.29 ■
I 2,148,492.21 ■
1 5,430,948.52 I
I PROFIT FOR THE YEAR $ 57,478.81 J
I CAPITAL STOCK authorized $ 5,000,000.00 |
a " " subscribed 2,500,000.00 |
i " " paid up (Preference) 1,000,000.00 i
I •' " " (Common) 1,500,000.00 |
I LOSSES PAID SINCE ORGANIZATION IN 1851. OVER $81,300,000.00 |
I Board of Directors I
I W. B. MEIKLE, President DR. JOHN HOSKIN, K.C., Vice-President |
I SIR JOHN AIRD E. HAY 1
1 ROBERT BICKERDIKE (Montreal) MILLER LASH B
1 LT.-COL. HENRY BROCK GEORGE A. MORROW s
■ ALFRED COOPER (London, Eng.) LT.-COL. THE HON. FREDERIC NICHOLLS 1
i H. C. COX BRIG. -GEN. SIR HENRY PELLATT, C.V.O. f
i JOHN H. FULTON (New York) E. R. WOOD 1
I D. B. HANNA |
I Board at London, Eng. |
I ALFRED COOPER, Chairman LORD CABLE SIR CHARLES JOHNSTON, Bart. |
I British and Foreign Offices: 14 Cornhill, London, E.C. 1
I W. A. MILES, Manager |
I Head Offices: Western Assurance Bldgs. |
I Cor. Wellington and Scott Sts., Toronto |
I W. B. MEIKLE, General Manager. C. S. WAINWRIGHT, Secretary. |
I ^^'^ I
iiiiiiiiimiHiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiniiiiiiiH^
28
THE MONETARY TIMES
Volume 66.
GOVERNMENT OF THE
PROVINCE OF MANITOBA
Capital Balance Sheet as at November 30th, 1920
ASSETS
Dominion of Canada: $13,046,973.93
Capital Account — Settlement
under Cap. 32, Geo. V. 1912 $ 7,631,683.85
School Lands, Cash retained at
Ottawa 5,415,290.08
$13,046,973.93
Public Works and Undertakings
(Book Values): As per
schedule 37,821,154.19
Utilities $17,139,866.83
Properties 20,485,013.54
Patriotic Purposes 196,273.82
$37,821,154.19
Capital Expenditure by Drainage
and Judicial Districts:
Judicial Districts $ 1,961,826.66
Drainage Districts 3,964,491.41
$ 5,926,318.07
Add — Available Cash yet to be
expended 101,644.25
C. N. R. — Minnesota Section
$ 6,027,962.32
349,000.00
$ 6,376,962.32
Investments and Secured Accounts:
Investments —
Manitoba Farm Loans Associa-
tion:
Bonds $ 2,400,000.00
Stock 250,000.00
$ 2,650,000.00
Dominion Government War
Loan 415,000.00
Municipality of Strathcona —
Telephone Debentures 4,000.00
Rural Credits Association —
Stock 14,045.00
Provincial Lands Capital Col-
lections Invested through
Trust Account (See Trust
Balance Sheet) 236,000.00
Total Investments
_$ 3,319,045.00
■Secured Accounts —
Settlers' Animal Purchase Act$ 270,889.35
Conservation of Cattle 44,438.38
Live Stock Purchase and Sales 58,458.51
Soldiers' Taxation Relief 578,328.43
Power Commission 828,273.54
Housing Scheme 2,457,151.77
Advances to Town of Morris.. 21,971.35
Total Secured Accounts $ 4,259,511.33
Amounts Available for Specific
Capital Outlay: (As per
Schedule)
Sinking and Replacement Funds
Investment : ( See Trust Bal-
ance Sheet)
6,376,962.32
7,578,556.33
2,017,249.56
4,348,473.87
$71,189,370.20
LIABILITIES
Stocks and Bonds: (As per Sched-
ule) $49,700,870.34
Revenue Bearing $24,850,548.20
Non-Revenue Bearing 18,473,359.82
$43,323,908.02
Drainage and Judicial Districts,
etc., advanced to and repaya-
able by them 6,376,962.32
$49,700,870.34
Treasury Bills:
For other Capital Purposes
Sinking and Replacement Funds:
(See contra)
Drainage Districts
Telephone Sinking Funds
Judicial Districts
990,445.24
727,497.27
248,305.72
4,348,473.87
Total Sinking Funds ___$ 1,966,248.23
Replacement Funds —
Telephone Fund - —
Provincial Government 155,625.33
In hands of Telephone Commis-
sion 2,226,600.31
$ 4,348,473.87
Capital Surplus: 15,661,025.99
Being excess of Capital Assets
over Capital Liabilities
In addition to the above Liabili-
ties tne Province has guaranteed
the Principal and Interest on Secu-
rities as follows:
Canadian Northern Securities —$25,663,553.33
Municipal Debentures, etc 3,261,358.84
Manitoba Farm Loans
Association $3,958,847.38.
Less — $2,400,000.00
Bonds held as
Capital Invest-
ment with Inter-
est accrued to
date 2,417,397.39
1,541,449.99
$30,466,362.16
The Province has also guaranteed the Interest
only on Municipal Debentures of a total par value
of $99,500.00, and has guaranteed the rentals
payable to the Northern Pacific Railway Com-
pany in respect of cei'tain Railways in Manitoba
leased.
$71,189,370.20
March 25, 1921
THE MONETARY TIMES
2»
Government of the Province of Manitoba
CURRENT BALANCE SHEET
As at November 30th, 1920
ASSETS
Cash on Hand: $ 57,416.06
Union Bank of Canada $ 18,700.87
Clerk of Contingencies 15,000.00
Royal Bank of Canada 23,715.19
$ _ 57,416.06
Advances:
On Trust Account — For moneys
advanced and repayable from
Patriotic Levy Rece'ipts S 340,000.00
On Deferred Account — For In-
vestigation of Public Build-
ings 295,619.45
635,619.45
$ 635,619.45
Appropriation of Revenue Cash for
Extinguishment of Govern-
ment .Stocks and Bonds:
For Telephone Stock Redemption
Fund —
Canadian Bank of Commerce
— London $
Union Bank of Canada — Lon-
don
727,497.27
643,668.88
83,828.39
$ 727,497.27
Other Accounts:
1,899,788.49
Due from —
Stockers and F'eeders $
5,566.76
Special Survey Accounts
12,748.97
Municipality of Sprague
213.85
Conservation of Estates of In-
sane
5,569.18
Seed Grain Loans — 1915
1,920.83
Public Utilities Commission
3,500.00
Employees' Fuel Account
6,440.30
Dominion of Canada et al
34,462.54
Seed Grain Purposes' Act —
1919
9,785.92
Loans to Soldier Teachers
5,180.00
School Districts — Advances
882.68
Seed Grain Purposes' Act —
1920
226,284.81
Provincial Savings Departm't
22,924.37
Rural Credit Societies
1,290,096.92
Principal $1,258,662.92
Interest accrued 31,434.00
$1,290,096.92
$1,625,577.13
Supplies on Hand — See Sched-
ule
244,854.22
Insurance Paid in Advance
29,357.14
$ 1,899,788.49
Outstanding Revenue: 1,752,634.82
Earned but not vet Collected —
See Schedule $ 2,045,511.97
Less — Received in Advance —
See Schedule 292,877.15
$ 1,752,634.82
Total Assets $ 5,072,956.09
LIABILITIES
Treasury Bills:
For Patriotic Levy $ 340,000.00
For Outstanding Revenue 1,350,000.00
For Rural Credit Societies 1,350,000.00
For Seed Grain Purposes' Act __ 250,000.00
$ 3,290,000.00
$ 3,290,000.00
Other Accounts:
Drainage Districts —
Interest Received in Advance-?
Less — Interest Paid
1,747,389.81
135,870.52
100,391.67
Net $
Accounts Payable:
Departmental Acc'ts _$50,270.50
35,478.85
50,563.70
School Libraries
293.20
$50,563.70
School Grants 270,175.00
Provincial Savings Office Depos-
its 900,000.00
Interest due to Sundry Rural
Credit Societies 1,578.64
$ 1,257,796.19
Accrued Interest — Not due ___$ 489,593.62
$ 1,747,389.81
Total Liabilities $ 5,037,389.81
Add:
Revenue Sui-plus being excess of
Current Assets over Current
Liabilities
Surplus as at November 30th,
1919 1 $
Less — Payment made to Mani-
toba Government Tele-
phones of their Surpluses
accrued between the years
1908-1913
35,566.2&
680,215.29
184,312.20
$ 495,903.09
Less — E.xcess of Current Dis-
bursements over Current
Revenue for the year end-
ing November 30th, 1920,
per Revenue and Dis-
bursement Statement
460,336.81
As above $ 35,566.28
Total Liabilities and Surplus
$ 5,072,956.09
30
THE MONETARY TIMES
Volume 66.
Government of the Province of Manitoba
DEFERRED BALANCE SHEET
As at November 30th, 1920
ASSETS
Succession Duties: $ 300,793.13
Amount Collectible with Interest
as per estimate by Mr. R. McN.
Pearson, Deputy Provincial
Treasurer.
Judgment: 1,413,420.05
Thos. Kelly & Sons —
Principal $ 1,207,351.65
Add —
Interest to Nov. 30th, 1917 — 206,255.90
LIABILITIES
Advances to Revenue: $ 295,619.45
Investigation of Public Buildings.
Deferred Surplus: 17,996,737.21
Less — Paid on Account
1,413,607.55
■187.50
$ 1,413,420.05
Sold Lands:
Agreements Receivable —
School Provincial
Lands Lands Total
Principal i 961,822.41 $1,689,100.41 $2,650,922.82
Add — In-
terest to
Not. 30th,
1920 _.. 186,716.50 311,322.85 498,039.35
$1,148,538.91 $2,000,423.26 $3,!48,962.17
3,148,962.17
Unsold Lands:
Old Province —
1,381,664.19 acres at $5 per acre$ 6,908,320.95
Added Territory —
6,110,293 acres at $1 per acre 6,110,293.00
7,491,957.19 acres in terms of
area, estimated at Ottawa
and valued by Mr. L. J. Howe,
Dep. Prov. Lands Commis--
$4,863,175.35
13,429,181.31
sioner $13,018,613.95
Swamp Lands 51,573.10 acres
Man. & N.W. Lands 11,591.11 acres
63,164.21 acres
At $6.50 per acre in terms of
valuation by Mr. L. J. Howe,
Dep. Prov. Lands Commis-
sioner
410,567.36
$13,429,181.31
$18,292,356.66
$18,292,356.66
11th February 1921.
To the Honorable,
The Provincial Treasurer of Manitoba,
Winnipeg, Manitoba.
Sir: —
In accordance with Orders-in-Council Nos. 24740 and 33982, we have conducted a periodical audit of the Books and
Accounts of the Acting Comptroller-General of the Province of Manitoba, for the fiscal period ending 30th November, 1920,
and we hereby certify that the attached Balance Sheets (Capital, Current, Deferred and Trust) are in accordance therewith
as at that date.
The Accounting vv-ork of the Comptroller-General's Department, involving the verification by the respective auditors
appointed for that purpose of all receipts and disbursements, and the correlating of the whole transactions in the Comp-
troller's Books, continues to be carried out in the same manner as in the previous years.
The securities representing the Investments in Bonds, Debentures, and Stocks, have been produced for our inspection,
and these are set forth in detail in our report thereon, submitted to you herewith. The Cash in Banks has been verified
by certificates furnished by the Banks concemed.
We further beg to certify, that in our opinion, the attached Combined Balance Sheet is properly drawn up, so as to
show a ti-ue and correct \'iew of the financial position of the Province as at 30th November, 1920, as shown by the Books of
the Acting Comptroller-General.
We have the honour to be.
Sir,
Your obedient servants.
JOHN SCOTT & CO.,
Chartered Accountants.
604
March 25, 1921
THE MONETARY TIMES
31
Railways and Irrigation Before Alberta House
Agreements for Acquisition of Alberta and Great Waterways Railway by Prov-
ince, and of Edmonton, Dunvegan and British Columbia by Canadian Pacific to
be Approved— Irrigation Bonds May be Guaranteed— Cities Want More Revenue
ORIGINALLY scheduled to open on January 26th, the
Alberta legislature did not commence its 1921 session
until February 15, owing to the serious illness of Premier
Charles Stewart. The speech from the tYirone did not fore-
cast any changes of importance, but it was announced that
legislation would be introduced confirming the taking over
for operation by the C.P.R. of the Edmonton, Dunvegan and
British Columbia Railway, and the acquiring by the govern-
ment of the Alberta and Great Waterways Railway. There
was no debate on this speech, as it was not considered to
contain anything of a controversial nature.
Railway Agreements
The agreements relating to the two railways mentioned
above were tabled on February 18. One shows that John D.
McArthur, termed the "owner" of the Alberta and Great
Waterways Railway, on July 23 last agreed to procure the
release of liabilities to the railway company to J. D. Mc-
Arthur Co., Ltd., and Union Bank of Canada, the railway's
creditors, and transfer to the provincial government all the
issued capital stock of the company, also releasing all his
personal claims of whatever nature against the railway. In
return, the government grants McArthur an option to re-
acquire the capital stock, the option running to July, 1927.
Exercise of such option is dependent on payment to the gov-
ernment of an amount "equal to the total of all moneys ex-
pended by it in connection with the fixed charges upon and
the construction, betterment, maintenance and operation of
the said line of railway and the purchase of equipment there-
for in excess of the net revenues received from such opera-
tions," and interest on the moneys expended. At any time,
however, during the life of this McArthur option, the gov-
ernment may proceed to sell the railway on payment to Mc-
Arthur of $710,000, which is the amount the railway is in-
debted through McArthur to the Union Bank of Canada.
The agreement in which the C.P.R. takes over the
E.D. & B.C. for operation recites the deeply involved financial
condition of the company, whereby it defaulted on interest
payments of its bonds guaranteed by the provincial govern-
ment. The gist of the arrangement whereby the government
induced the C.P.R. to lease the E.D. & B.C. for operation is
that the government agi-eed on July 21, 1920, to advance
$1,000,000 to the C.P.R., and such additional sums, not to
exceed $1,500,000, or a total of $2,500,000, to the C.P.R. as
manager, these funds to be used "to eliminate the present
deferred maintenance of the E.D. & B.C. and bring the lines
of that company to a reasonable standard of operating
efficiency, to be agree between the government and the C.P.R.
as manager." The agreement provides that the government
shall arrange for the physical connection between the C.P.R.
lines and the E.D. & B.C. tracks.
The moneys advanced by the government for the im-
provement of the Edmonton, Dunvegan and British Columbia
Railway by the C.P.R. as manager are to be repaid by July,
1925, or by July, 19.30, at the option of the E.D. & B.C.
That is, within five or ten years, as the case may be, mean-
while drawing interest at six per cent, per annum, payable
half yearly. As security the government takes a first mort-
gage on all the E.D. & B.C. property, which takes priority,
by arrangement, over all claims of J. D. McArthur and his
creditors. The manager company is to hold the lines for five
years and thereafter, subject to a three months' notice of
termination of the agreement. The manager company's
remuneration is to be 15 per cent, of the revenues of the
railways in excess of working expenditure, as defined in the
Railway Act. "such compensation to be payable only out of
the surplus earnings of the railways, after payment of fixed
charges." Working expenditure shall include all salaries or
wages of all persons exclusively engaged in the service of
the E.D. & B.C.
Natural Resources
On February 22, A. F. Ewing, leader of the opposition,
urged the province's claim for the return of natural re-
sources from the Dominion, moving the following resolution:
"This House declares that the people of Alberta, to the same
extent and in the same manner as the people in the other
provinces, arc entitled to the lands, mines, minerals and other
resources within the area, and to enjoy the full benefit
thereof, as well as to administer the same for the advantage
of its people, and emphatically protests against our natural
resources being unjustly withheld to be exploited by any
political party at Ottav^'a. This House urges the constant
and continued application to, and negotiations with the Do-
minion government be made for the surrender to the province
of the public domain within its boundaries, of which it is
now unfairly and unjustly deprived. This House further
declares that the province is entitled to compensation for
lands within its area heretofore alienated for purely Federal
purposes."
This subject was debated until March 7, when after
several amendments the following resolution was passed: —
"This House declares that the people of Alberta, to the
same extent and in the same manner as the people in the
other provinces, are entitled to the lands, mines, minerals,
and other resources within the area, and to enjoy the full
benefit thereof, as well as to administer the same for the
advantages of its people, and emphatically protests against
our natural resoui'ces being withheld. This House urges
that constant and continued application to, and negotiations
with the Dominion government be made for the surrender to
the province of the public domain within its boundaries. This
House further declares that the province is entitled to the
immediate transfer of our natural resources on fair and
equitable tenns having regard to the alienation of lands for
federal purposes, and taking into consideration subsidies
paid in lieu of lands. This House is pleased to note that the
Prime Minister of Canada is endeavoring to effect a settle-
ment of this question at the present time."
Municipal Legislation
The municipal legislation is voluminous, Calgary, Ed-
monton, Lethbridge, Medicine Hat, and Red Deer all hav-
ing their charters amended. There is also a bill to amend
the Municipal Hospitals Act of 1919, and a bill respecting
drainage districts.
The most contentious item in the Calgary charter is the
application for the right to impose a "minimum service" or
poll-tax on all citizens, to be off'set against other taxes.
Medicine Hat is asking virtually the same power. Leth-
bridge, which already has the power to impose a poll tax
is asking amendments to its charter to make application of
the tax more efficacious, among them one providing that all
persons must apply personally or by agents to the city
assessor to have their names put on the assessment list not
later than August 20 in each year to obtain advantage of
offset of the poll tax against property taxes. Another inter-
esting amendment asked by Lethbridge would give the city
council of that city power to designate any particular sec-
tion of the city as a residential, manufacturing, warehouse
or wholesale district and regulate the nature, style and size
of buildings to be erected within such district and their dis-
tances from the street line.
Like the larger cities of the province, Red Deer also is
coming before the legislature asking for the right to impose
32
THE MONETARY TIMES
Volume 66.
a poll tax on all persons, twenty-one years or ovei', to be
offset against otKer taxes. Following the Medicine Hat plan,
however, Red Deer is asking that persons earning under
$7!) a month be exempted from paying the poll tax. Red
Deer also asks the same provision as Medicine Hat that
employers be compelled to collect the tax from their em-
ployees, and it may be deducted from wages.
Other Legislation
Land came in for more taxes for educational purposes.
The "Educational Tax Act" provides for a levy of three
mills on all land not exempt from taxation by the province,
and on occupants of land which is exempt, and of one and
one-half cents per acre on grazing and mineral lands.
The "Minimum Wage Board," another bill before the
House, provides for the appointment of a board of five mem-
bers, two repi'esenting employters, two representing em-
ployees, and a chairman.
A bill to amend the Irrigation Districts Act, 1920, is
one of the most important measures before the house, as
the irrigation works, which it was thought would be started
by last year's legislation, are still only on paper.
Although its capital is only $10,000, the "Imperial Pipe-
line Co.," may increase this in accordance with the Alberta
Companies Act. Charles E. Taylor, engineer, Edmonton,
Joseph Carr, Edmonton, and W. L. Taylor, Calgary, are the
incorporators, and the bill authorizes the company to lay
pipelines for gas and oil. Authority to construct pipelines
is also given to the Ratepayers' Gas and Power Co., Ltd.
The Calgary and Southwestern Railway, incorporated
in 1918, is given two years to commence, and five years to
complete, constniction work.
The "Premier Insurance Co." will be incorporated with
a capital of $500,000, which may be increased to $1,000,000,
if its bill goes through. Twelve thousand must be sub-
scribed before the general meeting for the election of direc-
tors. The head oflice is Calgary, and the provisional directors
are A. C. Ruby, Calgary, insurance inspector; J. L. Brown
Didsbury, accountant; P. R. Reed, Didsbury, insurance man-
ager; R. Ontkes, Crossfield, hail insurance adjuster, and
David F. Ferrel, Jenner, farmer and collector. The lines
authorized are all branches excepting life.
Aid to Irrigation
The irrigation question came up for discussion at a
cabinet meeting on March 12. It is understood that a decision
that much more advanced aid to irrigation projects would
be given this year than last, finally was arrived at, though
the details of how this aid is to be advanced still remain to
be finally decided upon in caucus. There were three gen-
eral proposals discussed for irrigation aid. One was a pro-
posal for the government to guarantee without reservation
payment of interest on all irrigation bonds. Another was
to guarantee the bonds themselves up to a certain amount of
their par value, 50 to 75 per cent. The third was complete
and total guarantee of all the bonds.
About as many different opinions were expressed on
these three points as there were cabinet ministers at the
meeting. One important point agreed upon was that what-
ever aid is given to irrigation projects shall be of a general
nature, applying to all, and no specific project would be
singled out for attention. A majority of the ministers were
inclined to lean to the proposal of a direct and full guarantee
of all irrigation bonds of properly organized and supervised
districts but they fear adverse sentiment of the majority of
the government members in caucus, especiallv the northern
members, who are clamoring for further aid for the northern
railways.
COBALT ORE SHIPMENTS
The following are the shipments of ore from Cobalt
Station for the week ended March 18:
La Rose Mine, 67,370; Coniagas Mine, 130,960; O'Brien
Mine, 64,000; total, 262,330. The total since January 1 is
1,897,256 onunds, or 948.6 tons.
AVERAGE VALUE OF LAND INCREASED
$48 Per Acre in 1920, Compared With $46 in 1919— Farm
Wages Increased — Values of Livestock Show a Decrease
ESTIMATES of the 1920 values of fami lands, farm help,
livestock and wool have just been made by the Do-
minion Bureau of Statistics.
According to the returns received, the average value
of the occupied farm lands of Canada, which includes both
improved and unimproved land, together with dwelling
houses, barns, stables and other farm buildings, is $48 per
acre, as compared with $46 in 1919, $41 in 1918, $38 in 1917,
$36 in 1916 and $35 in 1915. By provinces, the value in
1920 is highest in British Columbia, viz, $175, as against
$174 in 1919, land in this province having a special value
due to orcharding and fruit growing. In the other provinces,
the average values of farm lands per acre are as follows:
Ontario and Quebec $70; Prince Edward Island $49; Nova
Scotia $43; Manitoba $39; New Brunswick $35; Saskat-
chewan and Alberta $32.
A .further advance is recorded in the average wages
paid for farm help in 1920, as compared with the previous
year, and the averages for 1920 are again the highest yet
reached. For the whole of Canada, the average wages per
month of farm helpers during the summer season of 1920
were for men $86, and for women $47, including board, the
average value of which was $26 per month for men and $20
per month for women. In 1919 the corresponding averages
were: $78 for men, including board value $24, and $43 for
women, including board value $19. For the complete year the
average value of wages and board was $821 for men and
$492 for women, as compared with $764 for men and $465
for women in 1919. By provinces, the average wages per
month for male and female helpers, respectively in the sum-
mer season and including board were, in 1920, as follows,
the figures for 1919 being given within brackets for com-
parison: Prince Edward Island $60 and $32 ($51 and $28);
Nova Scotia $73 and $38 ($69 and $34) ; New Brunswick
$79 and $35 ($79 and $35) ; Quebec $86 and $40 ($76 and
$37) ; Ontario $75 and $44 ($70 and $40) ; Manitoba $98
and $58 ($89 and $52); Saskatchewan $102 and $60 ($94
and $55) ; Alberta $107 and $62 ($95 and $58) ; British
Columbia $95 and $63 ($96 and $64).
Farm Livestock and Wool
As compared with 1919, the values of farm livestock
show a considerable decrease. For Canada as a whole,
horses under one year average $49, as against $55 in 1919;
horses one year to under three years $102, as against $108,
and horses three years old and over $151, as against $161;
cattle under one year $20, as against $25; cattle one year
to under three years $45, as against $56, cattle three years
and over $67, as against $83. For all descriptions, the "aver-
age value per head for Canada is for horses $106, as against
$119 in 1919; for milch cows $80, as against $92; for other
cattle $47, as against $58; for all cattle $59 as against $70;
for sheep $10 as against $15; and for swine $23, as against
$25. For swine per 100 lb. live weight the average is $15,
as against $16 in 1919. The average price per lb. of wool
in 1920 for Canada is 22 cents for unwashed and 32 cents
for washed, as against last year's records of 55 cents and
70 cents per lb. By application of the average values per
head to the numbers of farm livestock, as returned in June
last, it is possible to calculate approximately the total value
of farm live stock in Canada for the year 1920, with the
corresponding values for 1919 in brackets as follows-
Horses $361,,328,000 ($435,070,000); cattle $561,500 000
($708,821,000) ; sheep $37,263,000 ($50,402,000) ; swine $81 -
155,000 ($102„309,000). Thus, the total value of these
descriptions of farm livestock amounts to $1,041 246 000
as compared with $1,296,602,000 in 1919. ' '
The 1920 annual report of the Canadian National Ex-
hibition, Toronto, shows revenue of $775,076, while expendi-
tures were $631,354, leaving a balance of $143,722.
March 25, 1921 THEMONETARYTIMES 33
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34
THE MONETARY TIMES
Volume 66.
Canadian General Electric
Company, Limited
DIRECTORS
LT.-COL. THE HON. FREDERIC NICHOLLS, President
A. E. DYMENT, Vice-President and Chairman of the Board
J. J. ASHWORTH GEORGE W. BEARDMORE H. C. COX STEPHEN HAAS
COL. THE HON. SIR J. S. HENDRIE, C.V.O. SIR HERBERT HOLT
SIR JAMES LOUGHEED, K.C.M.G. SIR WILLIAM MACKENZIE W. L. MATTHEWS
F. G. OSLER W. G. ROSS
ANNUAL REPORT OF THE DIRECTORS
Submitted to the Shareholders at the Annual General Meeting of the Company
in Toronto, on Monday, March 21st, 1921
Your Directors in submitting their Annual Report for the
year ended 31st December, 1920, have pleasure in drawing at-
tention to the fact that the past year has been one of the most
progressive and prosperous in the history of the Company.
In the Annual Report for the year 1919 our Shareholders
were advised that owing to the period of reconstruction which
ensued after the Armistice conditions were far from encourag-
ing, but that during the last six months of 1919 our orders ex-
ceeded any similar previous period. Fortunately that growth
in the volume of business accepted by the Company both con-
tinued and increased during the year 1920, and at the close of
the year there were carried over uncompleted contracts
amounting to seven and a half million dollars.
The Profit for the year amounted to $2,213,731.14, from
which is deducted the sum of $326,300.14 for interest and $530,-
741.95 which has been reserved for Depreciation, leaving a net
Profit of $1,356,689.05. Dividends at the rate of 8% per an-
num and a Bonus of 2% were paid on the Common Stock and
7% on the Preference Stock of the Company, leaving a balance
of $342,574.80 carried to the credit of Profit and Loss account,
which, added to the balance of $436,097.48 brought forward
from the previous year, makes a total of $778,672.28 at the
credit of that account. This amount, together with our Reserve
of $5,000,000.00, makes a total Surplus of $5,778,672.28.
While Dividends have been earned and paid since the Com-
pany was first organized, your Directors have always been
careful to set aside from year to year an adequate sum for
Depreciation and Reserve. As a result of this conservative
policy continued over a long period the amount at the credit of
Depreciation Reserve stands at $5,091,949.40, and the amount
at the credit of Surplus account stands at $5,778,672.28. Hav-
ing in mind the fact that our Shareholders in the past have been
agreeable to the policy of a reasonable distribution of the
profits earned, in order that the Company might build up a sub-
stantial Reserve, it is proposed to submit to the Shareholders
at a Special General Meeting to be called for the purpose, a
proposition whereby a portion of our accumulated Surplus may
now be distributed to the Common Stock Holders in the form
of a Stock Di-^-idend of 20%.
A record of Dividends paid out since 1893 will be found on
page 17. This amount added to the Reserve set aside for De-
preciation, and the Surplus which has been accumulated, aggre-
gates the sum of $22,685,818.07.
With regard to our Inventory, your Directors have adopt-
ed a conservative policy. All active materials have been taken
at or below cost; any goods that may be considered obsolete
have been taken at the scrap value, and adequate reserves have
been provided to guard against any shrinkage in value.
The Company has no outstanding Bonds, Debentures,
Mortgages or prior liens of any description, other than a nom-
inal charge of $63,750.00 on properties purchased, and on
which existing Mortgages still current are not yet due.
While the amount at the credit of Current Accounts and
Bills Payable is in excess of last year, this has been caused by
the increase in our Inventory of raw materials. Work in Prog-
ress, Pay Rolls, etc., necessitated by the inci-eased volume of
orders booked. On the other hand the liquid condition of the
Company's Assets may be noted, the total of our liquid Assets
amounting to $16,081,604.04, or nearly $8,000,000.00 in excess
of our current Liabilities.
In our last Annual Report, Shareholders were advised that
owing to the manufacturing and distributing facilities of the
Company being overtaxed additions and extensions had been
authorized. These are now practically completed and equipped,
at a cost of $1,890,775.81, and will enable us to manufacture to
greater advantag.e. The total floor area of our several manu-
facturing plants is 2,055,464 square feet, and our Pay Roll for
1920 amounted to over $6,000,000.00.
The outlook for the electrical industry is most promising,
as the demand for hydro-electric power is greatly in excess of
the supply. The reason for this condition, favorable to the
electrical industry, is because the use of electric power leads to
more economical operation of industries and public utilities,
and the convenient use of numerous household appliances for
heating, cooking, lighting, etc. A survey of Canada's avail-
able water power shows nearly 20,000,000 horse power avail-
able, of which only about 2,000,000 horse power has been util-
ized, but other powers will be developed as the need arises, and
will afford a growing and continuing market for electrical
machinery and appliances.
In concluding this Report, which I am signing on behalf
of the Directors as President and General Manager of the
Company, I have to say that I do so for the last time, having
decided to retire from these responsible positions. Since I or-
ganized a syndicate thirty-three years ago, for the purpose of
investigating the possibilities of the electrical industry as a
field for investment, I have maintained a policy of personal
control and direction of all details of the business, large and
March 25, 1921
THE MONETARY TIMES
35
small. The Capital of the original syndicate, from which our
present Company sprung, was $10,000.00, whereas our Assets
to-day are over §31,000,000.00. This remarkable growth neces-
sitated a corresponding increase in responsibilities, and I have
concluded that it is not only fair to myself to ask for a measure
of relief, but also none the less fair to the interests of the
Shareholders that younger men should succeed me and carry
on. During my long period of service I have been fortunate
in maintaining the respect and confidence of your Directors
with whom it has been my privilege to be associated in our mu-
tual efforts towards building up a great and prosperous Cana-
dian industry, and they have expressed the desire that I accept
the position of Chairman of the Board of Directors, in which
position I will be able to continue to keep in touch with the
affairs of the Company, and my services will be available for
assistance and advice when required.
FREDERIC NICHOLLS, President.
Canadian General Electric Company, Limited
AND SUBSIDIARY COMPANIES
Consolidated Balance Sheet, 31st December, 1920
ASSETS
Capital Assets —
Land, Buildings, etc., at Toronto, Pcterboro,
Bridgcburg, Stratford, Montreal, Branch Of-
fices, and Power Plant at Nassau $ 8,280,299.53
Machinery and Tools 5,553,628.96
Patterns and Drawings 918,128.38
Patents, Contracts and Goodwill 1.00
Total Capital Assets $14,752,057.87
Current Assets —
Inventory of Raw Material, Sup-
plies, Work in Progress and fin-
ished Materials, including ex-
penditures on Contracts (less
collections on account) $9,892,969.55
Accounts Receivable (less Reserve
for Doubtful Accounts) 4,757,942.17
Mortgages Receivable 90,000.00
Investments 894,086.30
Cash on hand and in Banks 343,824.29
Prepaid Insurance Premiums, etc. 102,781.73
Total Current Assets 16,081,604.04
$30,833,661.91
LT.-COL. THE HOX. FREDERIC NICHOLLS, President.
A. E. DYMENT, Vice-President.
LIABILITIES
CAPITAL STOCK —
Common — Authorized $10,000,000.00
Issued
Preferred — Authorized and Issued 2
,754,400.00
,000,000.00
$10,754,400.00
63,750.00
509,667.57
8,463,245.07
MORTGAGE OBLIGATIONS ON PROPERTIES
PURCHASED
CONTINGENT LIABILITIES
CURRENT ACCOUNTS AND BILLS PAYA-
BLE
DIVIDEND ON COMMON STOCK ACCRUED,
paid January 1st, 1921 171,977.59
RESERVE FOR DEPRECIATION l.-_ 5,091,949.40
SURPLUS per Account Annexed —
Resers'e $5,000,000.00
Profit and Loss 778,672.28
5,778,672.28
$30,833,661.91
With our Report to the Shareholders dated 21st February,
1921, appended hereto.
PRICE, WATERHOUSE & CO., Auditors.
CONSOLIDATED SURPLUS ACCOUNT
Profit for the year ended December 31st, 1920, before providing for Depreciation and
Interest on borrowed Capital $2,213,731.14
Less —
Reserve for Depreciation of Plant and Equipment $530,741.95
Interest on borrowed Capital 326,300.14
»r . T, ^ 857,042.09
Net Profit for the Year $1,356,689.05
Less— Dividends Paid: 8% and bonus of 2% on Common, and 7% on Preferred Stock _ 1,014,114.25
Surplus for the Year $ 342,574.80
Add —
Undivided Profits as at December 31st, 1919 436,097.48
Balance at credit Profit and Loss $ 778,672.28
Reserve 5,000,000.00
Surplus per Balance Sheet $5,778,672.28
503
36
THE MONETARY TIMES
Volume 66.
HIGHER ESTIMATES FOR ALBERTA
Small Surplus is Estimated for 1921. However — Treasurer
Does Not Plan to Increase Taxes
HON. C. R. MITCHELL, provincial treasurer of Alberta,
delivered his budget speech in the Legislature on
March 11. The total ordinary revenue for the year 1921 is
estimated at $12,778,879, and the total current expenditure
at $12,736,284. This is an inci-ease of approximately $2,000,-
000 in both revenue and expenditure over the preceding year
of 1920. Mr. Mitchell announced that the government of
Alberta was not considering imposing any increased forms
of taxation during the current year. The $2,000,000 increase
in revenue is expected to come from increases in the ordinary
sources, such as Dominion subsidy, school land sales, attoi'-
ney-general's department, including liquor revenue, land titles
fees and telephone receipts.
The only reference to irrigation aid contained in the
treasurer's remarks was a paragraph to the effect that if
the province had possession of its natural resources, it might
consider a plan of "helping the farmer, who cannot be helped
by either drainage or irrigation projects — that is, we could
then arrange for their removal to new locations in vast dis-
tricts not now occupied where crop failures seldom occur,
and thus permit the di-y areas to revert to the use which
nature intended, viz., live stock raising." Mr. Mitchell added
that railway transportation into these new areas was im-
proving daily. The finding of oil and mineral deposits in the
far north would increase traffic. "A twofold advantage would
thus accrue to the province," said the treasurer. "A large
section of its people would be placed in a more favorable
position, financially, and the northern transpQrtation systems
would be naturally strengthened."
A large part of the treasurer's remarks were devoted to
statistics showing the enormous increase in the agricultural,
dairying, live stock and mining industries of the province.
Alberta's Public Debt
The provincial treasurer, referring to the provincial
debt at one stage of his remarks, said: "The gross public debt
of the province as at December 31, 1920, amounted to $41,-
989,900. Of this sum, $15,834,394 is represented in the tele-
phone system, $471,501 in demonstration fai-ms and $6,815,-
649 in other revenue-producing investments. So that if we
deduct these utilities and investments, which amount to $23,-
121,545, the net debt is reduced to $18,868,354. Of this sum,
only $920,387 can be said to be in unproductive undertakings,
and is made up chiefly of discount on bonds and other patri-
otic relief."
The provincial treasurer gave a brief capitulation of the
province's assets and liabilities, in which he said that the
excess of assets over liabilities is represented by the sum
of $104,660,482. In the assets he included the Dominion of
Canada debt allowance of $8,107,500; school lands ti-ust fund,
amounting to $13,388,456 in principal money, paid and out-
standing; unsold scliool lands held for future benefit to the
value of $81,967,783; telephone plant valued at $14,584,394.
He added: "If all these $100,000,000 assets that we may now
claim were wiped out summarily, we still have that inalien-
able asset — the right of taxation."
Although it is registered in Saskatchewan, the Ontario
Wind Engine and Pump Co., of Toronto, lost an action in a
Regina court because it was shown that the company did
not maintain an office in the province.
At the annual meeting of the Office Furniture and Sup-
plies Co., Ltd., held in Brockville on March 15, the follow-
ing officers and directors were elected : President, T. Sis-
man, Aurora; vice-president, W. H. Comstock, Brockville;
Managing-director, H. K. Bowes, Brockville. Directors—
Hon. G. W. Fowler, Ottav/a; Capt. McVittie, Toronto; J.
Gill Gardner and W. B. Reynolds, Brockville.
ALBERTA HAD HALF MILLION SURPLUS IN 1920
Public Accounts Presented in Legislature Show Revenue of
$10,919,776 and Expenditure of $10,423,356
THE total revenue of Alberta during 1920 was $10,919,776,
and the total expenditure $10,423,356, leaving a surplus
of $496,420 on income account, according to the public ac-
counts of the province brought into the legislature on March
7 by Hon. C. R. Mitchell, provincial treasurer and acting
premier.
The revenue came from the following sources: Dominion
subsidy, $1,621,075; school lands, $692,028; treasury depart-
ment, $639,426; provincial secretary's department, $1,628,482;
attorney-general's department, $1,596,204; public works de-
partment, $67,926; agricultural department, $1.58,382; tele-
phone depai-tment, $1,913,913; legislation, $2,449; executive
council, $200; educational department, $43,061; King's printer,
$9,284; municipal affairs department, $2,508,465; public
health depr..rtment, $29,151; public utilities, $4,436; miscel-
laneous, $5,287; total, $10,919,776.
Expenditures for 1920
The total expenditures included the following: Public de-
partment, $1,568,106; civil government, $632,654; legislature,
$178,914; administration of justice, $1,405,510; public works
department, $1,608,231; education, $1,785,163; agricultural
and statistics, $544,256; public health department, $367,104:
railways branch, $7,151; telephones bra.nch, $1,879,303; gen-
eral administrative, $235,136; municipal affairs department,
$148,543; miscellaneous, $55,833; total, $10,423,356.
Figured on the same basis, the public accounts of 1919
showed a surplus of $316,990, so that the surplus for 1920
was $79,420 greater than that of 1919. The municipal affairs
department under deputy minister J. H. Lamb, was the
greatest revenue producer of any department, the collections
of tax arrears having been especially good. The actual cash
surplus on hand, which is figured from the difference between
revenue from all sources including capital funds, amounting
to $15,881,106, and the grand total expenditure of $15,358,056,
leaves cash on hand of $523,050. The telephone department
shows a net surplus of $34,610. The expenditures in this
department for 1920 included large sums to cover mainten-
ance and sinking fund charges. In the division of expendi-
tures between capital and income accounts, net expen-
diture on capital wa« $6,814,018 and on income account
$8,544,037, which gives the total as $15,358,056 as cited in the
foregoing. In the same way, on the revenue side of these
two accounts, capital shows $6,611,103 and income $9,005,862,
a total of $15,881,106.
WESTERN CANADA COLONIZATION ASSOCIATION
At a special meeting of the directors of the Western
Canada Colonization Association, held in Saskatoon on March
19, Robert Hobson, of Hamilton, Ont., was elected president
and chairman of the board; M. A. Brown, of Medicine Hat,
vice-president and chairman of the executive committee, and
Major-General A. D. McRae, C.B., of Vancouver, managing
director.
Upon General McRae mainly will devolve the task of
setting up a colonization machine, and making it work. Gen-
eral McRae has extensive financial and commercial interests
in British Columbia, but he was for long engaged actively in
land settlement operations of the prairies. At the outbreak
of war in 1914 he resigned his directorships in various com-
mercial enterprises and placed himself at the disposal of the
Canadia^n government, which appointed him lieutenant-col-
onel in charge of all remounts west of the Great Lakes, and
in this capacity he won special commendation from the Cana-
dian Royal Commission on war purchasing.
March 25, 1921
THE MONETARY TIMES
DIVIDENDS AND NOTICES
TENDERS FOR PULPWOOD AND TIMBER LIMIT
Tenders will be. received by the undersigned up to and
including the 15th day of June, 1921, for the right to cut pulp-
wood and pine timber on a certain area situated on the Na-
gaganii River and other territory adjacent thereto, in the
District of Algonia.
Tenderers shall state the amount per cord on pulpwood,
and per thousand feet, board measure, on pine, that they
are prepared to pay as a bonus in addition to dues of 80
cents per cord for spruce and 40 cents per cord for other
pulpwoods, and $2.50 per thousand feet, board measure, for
pine, or such other rates as may from time to time be fixed
by the Lieutenant-Governor-in-Council, for the right to oper-
ate a pulp mill and a paper mill on or near the area re-
ferred to.
The successful tenderer shall be required to erect a
mill or mills on or near the territory, and to manufacture
the wood into pulp and paper in the Province of Ontario.
Parties making tender will be required to deposit with
their tender a marked cheque, payable to the Honourable
the Treasurer of the Province of Ontario, for fifty thousand
dollars ($50,000), which amount will be forfeited in the
event of the successful tenderer not entering into agreement
to carry out conditions, etc.
The said $50,000 shall remain on deposit until the pulp
mill, as provided by terms and conditions of sale, is erected
and in operation. Any timber cut in the meantime shall be
subject to payment of dues and bonus as accounts for same
are rendered. After the said pulp mill is erected and in
operation, the deposit of $50,000 may be applied on account
of bonus dues as they accrue, but the regulation dues, as
mentioned above, shall be paid in the usual manner as re-
turns for cutting of wood and timber are received and ac-
counts rendered.
The highest or any tender not necessarily accepted.
For particulars as to description of territory, capital to
be invested, etc., apply to the undersigned.
All tenders should be enclosed in sealed envelope and
marked plainly on outside, "Tender for Nagagami Pulp and
Timber Limit."
BENIAH BOWMAN,
Minister of Lands and Forests.
Toronto, January 24th, 1921.
N.B. — No unauthorized publication of this notice will be
paid for.
494
CANADIAN CAR AND FOUNDRY COMPANY, LIMITED.
MONTREAL
DIVIDEND NOTICE
Notice is hereby given that a Dividend of one and three-
quarters per cent. (!%'"<) on the paid-up Preference Stock
of this Company for the quarter ending March 31st, 1921,
has been declared, payable on the 11th day of April, 1921,
to Shareholders of record at the close of business on the
26th day of March, 1921.
By Order of the Board.
A. C. BOURNE,
Secretarj-.
Montreal, March 18th, 1921. "SOO
THE CANADIAN CROCKER-WHEELER CO., LIMITED
DIVIDEND NOTICE
The Directors of the Canadian Crocker-Wheeler Com-
pany, Limited, have declared a One and Three-Quarters per
cent. (1%%) dividend on the preferred stock of the Com-
pany for the three months ending "March 31st, 1921, to share-
holders of record March 21st, 1921. Also a dividend of
One and Three-Quarters per cent. (1%%) on the common
stock of the Company for the three months ending March
31st, to shareholders of record March 21st, 1921.
The Stock books will be closed from the 21st to the 31st
of March, both days inclusive.
Checks will be mailed to shareholders on March 31st,
1921.
By Order of the Board.
H. A. BURSON,
Secretary.
St. Catharines, Ont., March 5th, 1921. 476
DOMINION TEXTILE COMPANY, LIMITED
NOTICE OF DIVIDEND
A dividend of two and one-half per cent. (2V2%) on the
Common Stock of the Dominion Textile Company, Limited,
lias been declared for the quarter ending 31st March, 1921,
payable April 1st to shareholders of record March 15th, 1921.
By Order of the Board.
JAS. H. WEBB,
Secretary-Treasurer.
Montreal, 28th February, 1921. 461
PROVINCIAL PAPER MILLS, LIMITED
DIVIDEND NOTICE
Notice is hereby given that Dividends have been declared
by Provincial Paper Mills, Limited, as follows: —
Regular Quarterly Dividend 1%% on Preferred Stock.
Regular Quarterly Dividend l',2 9o on Common Stock.
Special Dividend 1% on Common Stock.
All payable on April 1st, 1921, to Shareholders of record
at close of business, March 15th, 1921.
484
(Signed)
S. F. DUNCAN,
Secretary.
CANADA CEMENT COMPANY, LIMITED
ORDINARY SHAREHOLDERS
DIVIDEND No. 20
Notice is hereby given that a dividend of 1%% for thft
three months ending March 31st, 1921, being at the rate of
6% per annum on the paid-up Ordinary Stock of this Com-
pany, has been declared, and that the same will be paid on
the 16th day of April next to Ordinai^^ Shareholders of
record at the close of business, March 31st, 1921.
H. L. DOBLE, Secretary.
Montreal, March 16th, 1921. 499
38
THE MONETARY TIMES
Volume 66.
Analysis of Business Failures in 1920
Personal Causes are Still More Prominent as Reason for Insol-
vency—Lack of Capital Caused 34 Per Cent.— Comparison
on Basis of Credit Ratings, Liabilities, and Capital Employed
FA.ILURES in Canada in 1920 are estimated by Brad-
street's at 979, compared with 626 in 1919. Tliis is an
increase of over 50 per cent. The firms failing in 1920 had
assets of $11,477,757 and liabilities of $22,1.39,575, while the
figures for 1919 were $5,104,534 and $10,120,232. An analysis
of these figures is shown herewith, giving the causes, and
classifying them according to credit ratings, to liabilities
and to capital employed. Commenting on the figures, Brad-
street's say: —
"Canadian like American failures were on an ascending
scale in 1920, the number, 979, being 56 per cent, in excess
of the total for 1919, which latter saw the smallest total
recorded. Liabilities also expanded, totalling $22,139,575,
over double the 1919 total and equal to the liabilities of 1919
and 1918 combined. Personal causes of failure found even
greater play than they did in the preceding year, the pro-
portion due to the individual being 79.3 per cent., against
77.3 per cent, in 1919, 72.8 per cent, in 1918 and 73.5 per
cent, in 1917. In fact, little over a fifth, 20.7 per cent., of
all failures were non-personal, as against 22.7 per cent, in
1919.
"As usual in newer countries, lack of capital led in re-
sponsibility for failure with 34.1 per cent, of all failures as
against 35.8 per cent, in 1919. Incompetence, with 20.8 per
cent, against 20.1 per cent, in 1919, and inexperience, with
8.1 per cent, against 5.4 per cent, in 1919, showed increased
proportions, as did fraud, with 9.9 per cent, against 8.9 per
cent, in 1919. Neglect also reaped a larger total, 2.9 per
cent, in 1920 against 2.4 per cent, in 1919. Of non-personal
causes, specific conditions, with 18.6 per cent, against 20.9
per cent, in 1919, showed the most important decrease from
the preceding year. Personal causes affected liabilities to the
extent of 76.2 per cent, as against 87.1 per cent, in 1919, the
big decrease being accounted for largely by the small pro-
portion, 6.3 per cent., due to fraud in 1920, as compared
with 21.3 per cent, in 1919. Lack of capital, the leading
cause in Canada for years, was credited with 52.8 per cent,
of all liabilities, as against 45.5 per cent, in 1919. Inexperi-
ence, with 4 per cent, against 2.2 per cent, in 1919, and in-
competence, with 10 per cent, against 13.1 per cent, in 1919,
were the two other principal personal causes affecting liabili-
ties. Specific conditions operated to produce 22.3 per cent,
of the failure liabilities in 1920 as against 11.5 per cent, in
1919, and competition here, as in failures, drew a slightly
larger total than in 1919."
SUMMARY— DOMINION OF CANADA, NEWFOUNDLAND AND ST. PIERRE AND MIQUELON.
Number. Assets. Liabilities.
1920. 1919. 1920. 1919. 1920. 1919.
Failures due to
Incompetence 204 126 $ 1,144,019 $ 647,854 $ 2,205,521 $ 1,328,804
Inexperience 79 34 389,363 79,950 891,863 228,630
Lack of capital 334 224 5,643,600 2,117,805 11,682,434 4,601,550
Unwise credits 23 16 97,000 62,550 226,700 146,966
Failures of others 13 11 60,700 49,700 189,300 140,346
Extravagance 6 5 8,020 22,000 30,199 52,500
Neglect 28 15 73,060 28,316 172,213 76,920
Competition 8 .. 58,000 140,0.50
Specific conditions 182 131 3,478,121 639,284 4,945,136 1,139,455
Speculation 5 8 145,040 113,000 251,455 247,037
Fraud 97 56 380,834 1,344,075 1,404,704 2,158,024
Total 979 626 $11,477,757 $5,104,534 $22,139,575 $10,120,232
PERCENTAGES OF NUMBER OF FAILURES AND LIABILITIES
IN THE UNITED STATES AND CANADA IN 1920 AND 1919, CLASSIFIED AS TO CAUSES
United States, per cent. Canada, per
Number. Liabilities. Number.
1920. 1919. 1920. 1919. 1920. 1919.
Failures due to
Incompetence 32.5 38.2 13.3 22.6 20.8 20.1
Inexperience 6.6 5.6 3.3 4.8 8.1 5.4
Lack of capital 32.3 30.3 26.6 25.5 34.1 35.8
Unwise credits 1.6 1.3 3.7 3.9 2.4 2.6
Failures of others 1.2 1.7 .8 3.3 1.3 1.8
Extravagance 1.2 1.1 .3 1.2 .6 .8
Neglect 1.3 1.7 .5 .8 2.9 2.4
Competition 1.3 1.1 .3 .8 .8
Specific conditions 14.4 11.3 45.5 20.5 18.6 20.9
Speculation 6 .7 1.9 2.3 .5 1.3
Fraud 7.0 7.0 3.8 14.3 9.9 8.9
(Continued at foot of page 39)
cent.
Liabilities.
1920.
1919.
10.0
13.1
4.0
2.2
52.8
45.5
1.0
1.4
.9
1.4
.2
.5
.8
.7
.6
22.3
11.5
1.1
2.4
6.3
21.3
On March 12 a deputation from Hamilton, headed by
Messrs. Wells and Dutten, made tentative proposals regard-
ing some such mutual insurance to Mr. Evan Gray of the
Insurance Department at the Parliament Buildings, who
asked for draft amendments, which he might fui'ther con-
sider.
March 25, 1921
THE MONETARY TIMES
39
DEBENTURES FOR SALE
TOWN OF NOKOMIS
Town Debentures for Sale: $20,000, fifteen equal annual
payments, interest eight per cent. Can be divided into $5,000
lots. Address offers to
C. L. CAMPBELL,
Town Clerk,
502 Nokomis, Sask.
Condensed Advertisements
" Positions Wanted." 3c per word : all other condensed advertisements
Sc. per word. Minimum charge for any condensed advertisement, 65c
per insertion. Alt condensed advertisements must conform to usual
style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance; 50 per cent, extra if charged.
POSITION WANTED by young man, age 25, with Bank
or Trust Company. Hamilton, Ottawa or Winnipeg preferred.
Advertiser has had eight years' experience with a Trust
Company. Box 403, Monetary Times, Toronto.
SECRETARY-TREASURER, age 30, of large company
in British Columbia, desires connection in similar capacity
with well-established business in Ontario, Hamilton preferred.
First-class accountant, with excellent credentials. The more
responsibility to be assumed, the better. Prepared to go east
immediately for interview for any legitimate proposition.
Apply by wire or letter to H. Anscomb, 1921 Government
Street, Victoria, B.C. 501
THE ROYAL BANK OF CANADA
MONTRE.AL
Statement to the
Dominion Government (Condensed)
Showing Condition of the Bank on
28th Febraary, 1921
LIABILITIES
Undi<
ided Profits
Dividend No. 134. Payable 1st March, 1321
Notes in Circulation „
Deposits _ _ -..
Due to Other Banks
Bills Payable (Acceptances by London Branch)
546.928.20
606.022.04
36^07.CE2.74
427.163,293.52
15.139.683.63
6.596.405.20
epta
ces under Letters of Credit 17.939.520.73
ASSETS
Cash on Hand and in Banks
Deposit in the Central Gold Reserves
Government and Municipal Securities
Railway and Other Bonds. Debentures am
Call Loans in Canada
Call Loans Elsewhere Than in Canada.
$544,539,851.06
$130,680,196.61
16.500.000.00
33.060.745.20
i 14.729.158.68
13.709.223.76
35.242.116.48
$243.92L440.73
Loans and Discounts .._ 271.173.558.43
Liabilities of Customers under Letters of Credit
as per Contra 17.939,520.73
Bank Premises 9.680.112.25
Real Estate Other Than Bank Premises 923.274.09
Mortgages on Real Estate Sold by the Bank 41,944.83
Deposit with Dominion Government for Security
of Note Circulation 860.000.00
$544,539,851.06
725 BRANCHES IN CANADA. NEWFOUNDLAND. WEST INDIES
CENTRAL and SOUTH AMERICA, also LONDON. NEW YORK
and BARCELONA
Parii Amili.ry-THE ROYAL BANK OF CANADA (France)
FAILURES IX THE UNITED STATES AND CANADA
(Conurmed from page 38)
CLASSIFIED ACCORDING TO CREDIT RATINGS, TO LIABILITIES AND TO CAPITAL EMPLOYED
1920. 1919. 1918.
.Vo. % No. % No. %
Credit Ratings of those ivho failed
Total number failures U.S. and Canada 9,442 100. 6,141 100. 10,146 100.
Number failing which had very moderate or no
credit rating 8,807 93.3 5,995 97.6 9,825 96.8
Number failing rated in good credit 557 5.9 117 1.9 282 2.8
Number failing rated in very good credit or
higher 78 .8 29 .5 39 .4
Liabilities of those who failed
Total number failures U.S. and Canada 9,442 100. 6,141 100. 10,146 100.
Total with less than $5,000 liabilities 4,191 44.4 3,346 54.5 6,001 59.1
Total with .$5,000 liabilities and over 5,251 55.6 2,795 45.5 4,145 40.9
Total with $5,000 to $20,000 liabilities 3,206 34. 1,967 32 2,957 29.1
Total with $20,000 to $50,000 liabilities 1,119 11.9 519 8.5 752 7.4
Total with $50,000 to $100,000 liabilities 447 4.7 164 2.7 229 2.3
Total with $100,000 to $500,000 liabilities 363 3.8 127 2.1 182 1.8
Total with $500,000 liabilities and over 116 1.2 18 .3 25 .3
Total with $1,000,000 liabilities and over 61 .6 16 .2 15 .1
Capital eniptoijed by tliose uho failed
Total number failures U.S. and Canada 9,442 100. 6,141 100. 10,146 100.
Total with $5,000 capital or less 8,474 89.8 5,740 93.5 9,078 89.5.
Total with over $5,000 and less than $20,000. . 613 6.5 264 4.3 745 7.4
Total with $20,000 and less than $50,000 217 2.3 87 1.4 227 2^2
Total with $50,000 and less than $100,000 69 .7 23 .4 50 .5
Total with $100,000 and less than $500,000 59 .6 26 .4 44 .4
Total with $500,000 and over 9 .09 1 .02 2 .02
Total with $1,000,000 and over 1 .01 .... 1 !oi
1917.
No. %
14,139 100.
13,698 96.9
398 2.8
43
14,139
100.
11,262
79.7
2,877
20.3
2,134
15.1
487
3.4
142
1.
101
.7
13
.09
6
.04
14,139
100.
13,304
94.1
617
4.3
153
1.1
39
.3
25
.2
1
.007
A gathering of representatives of Anglo-Canadian bank-
ing, commercial and professional interests, resolved to pro-
ceed in the formation of a Canadian Chamber of Commerce
in London.
40
THE MONETARY TIMES
Volume 66.
PROGRESS OF THE TRUST COMPANIES
Soundness and Conservatism Reflected by Recent Advances —
New Capital to Take Care of Increased Business
A RECENT number of the Executor and Trustee, issued
by the Toronto General Trusts Corporation, comments
as follows on trust company affairs: —
"The opening of 1921 finds Canadian trust companies
in an exceedingly strong position, their financial standing
not being in any way affected by the period of deflation.
This happy state of affairs is due in large measure to the
character of the legislation under which these companies
have been incorporated. When the first trust company — the
Toronto General Trusts Corporation — w&s formed in 1882,
its founders were fortunate in having before them the record
of the operation of such companies in the United States ex-
tending to over half a century. They knew the strong feat-
ures of the business which had made for permanence and
strength, and also the flaws through which many abuses ha-d
crept in, and by co-operating with the government, assisted
in having sane and sound legislation placed on the statute
book.
Are Essentially Conservative
"Conservatism is the guiding policy of Canadian trust
companies, and, as has been well said by a foi-mer controller
of the United States treasury: 'Conservatism is really the
foundation of all good banking, and is more especially so in
trust company operations than in anything else. Purely trust
functions of the old-fashioned trust company are undoubtedly
the highest development of the principle of credit and confi-
dence, they are the highest application of that principle to
the relation of man to man in business.' Canadian trust
companies are not commercial banks with trust company
privileges; they have restricted their operations to services
of a trust and agency business only.
"There are at present about 30 companies conducting
the regular trust company business in Canada. The total
amount of assets under their care is now approximately
three-quarters of a billion dollars — not a bad showing surely
for a young country with a population of less than eight
millions. These assets are made up as follows: —
Capital and reserve funds $ 47,000,000 •
Guaranteed funds 42,000,000
Trust funds 661,000,000
:, $750,000,000
"At the beginning of 1916 these amounted to $375,000,-
000, thus ma.king an increase in business of 100 per cent, in
four years. These figures speak for themselves as to the
increase in the wealth of the Dominion and of the confidence
of her citizens in her trust companies.
Increases in Capital
"During the past year two of the leading companies
increased their capital stock by half a million dollars, in each
case the new stock being readily taken up at a good pre-
mium. The companies have also done a large business as
trustees for bondholders, registrars and transfer a.gents.
There will undoubtedly be a large increase in this class of
business in the future, as the business of the country increases.
"And the prospects of a lai'ge increase in Canada's
business in the near futuj-e are bright. One of the delegates
at the Interna-tional Financial Conference held at Brussels
a few months ago, out of his full knowledge of the affairs of
Canada, as well as of the other countries there represented,
has said that he is convinced from what he learned at this
conference that Canada is the most fortunate land on the
face of the earth; we have lots to do, there are tremendous
resources to develop, and we must prepare for a tremendous
population. The industrial development of the Dominion will
require large amounts of capital. This capital will be used
in a great variety of ways; companies with heavy capitaliza-
tion will be formed, and in all of these transactions the
Canadian trust companies will participate to a large extent.
"There has also been a notable increase in the numbei
of voluntary or living trusts created within the past few
years, in which trust companies have been appointed trus-
tees. This class of business is also sure to increase with the
growing wealth of the country.
"Altogether Canadian trust companies have reason to be
well satisfied with the progress they have made."
MANUFACTURERS' ASSOCIATION MEMBERSHIP
Last year was the most successful year in the history
of the CM. A., so far as increase in membership was con-
cerned; 662 applications were accepted and 131 resignations.
All resignations were due to such causes as liquidation,
ceasing manufacturing, etc. This gave a set gain last year
of 531 members. The second most successful year was 1901,
when the net gain in membership was 485, and the third most
successful was 1905, when the net gain was 328.
From May 1, 1920, the beginning of the association's
fiscal year, to January 15, 1921, the membership work of the
association showed the following: Applications, 238; resig-
nations, 143; net gain, 95. The reasons given for the above
resignations are classified as follows: Out of business, 41;
not manufacturing, 20; amalgamations, 19; arrears, 33; de-
ceased, 3; no reason, 2; financial difficulties, 4; additional
representatives dropped, 21. Total, 143.
LAND MORTGAGE COMPANIES OF ONTARIO
The annual meeting of the Land Mortgage Companies'
Association of Ontario was held on March 10 in Toronto.
Twenty of the twenty-three member companies w-ere re-
presented. C. W. Cartwright of the Landed Banking and
Loan Co., Hamilton, who presided, said that the aggregate
assets of the twenty-three companies forming the associa-
tions amounted to a little more than $133,000,000 out of assets
of $211,000,000 of all the companies operating in Ontario.
This large sum represented investments of funds intrusted
by many thousands of shareholders, depositors and deben-
ture-holders, largely the accumulation of many small sums,
which had been made available for loaning to Canadian
farmers and home-owners. "The responsibility resting not
only upon the directors and managers of the company," he
said, "but also upon governments and legislatures of care-
fully avoiding any action which may jeopardize the funds
witli which these institutions have been entrusted, is one
which all should look upon as a sacred trust." Mr. Cart-
wright expressed satisfaction at the termination of the
moratorium in Ontario, and said the example would well be
followed by Western Provinces still retaining it.
Vice-president George H. Smith, of the Canada Per-
manent, said that in the 34 years of its history, there had
never been a disastrous failure among members of the as-
sociation and none of any kind for many years.
The report of the executive committee cited recommenda-
tions made to the registrar of loan corporations which in-
cluded raising the cash deposits on subscribed stock upon
application for incorporation from $50,000 to $100,000. It
was also suggested that loan companies lending on govern-
ment bonds should be limited to the bonds of governments
within the British Empire. Limit of duration of debentures
should be extended from the ten to twenty-five years, ac-
cording to another suggestion.
Regret was expressed that the retirement from the execu-
tive of D. B. Wadsworth, who is resigning from the position
of manager of the London and Canadian. His place on
the executive was filled by the appointment of W. C. Noxon,
his successor in the London and Canadian Loan. J. A.
Davidson, of Stratford, manager of the British Mortgage
Co., was appointed to succeed the late Mr. Kittermaster of
Sarnia on the executive. Otherwise the former officers and
members of committee were re-elected.
March 2o, 1921
T HE MONETARY TIMES
dllllllMllltiniUllllllllllllllllllllllllliMllllllllllllllltllllMMMIIIIIIIIIIIIIIMIIirillllMIIIIIIIIIIIIIIIIIIUIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII^
i CHARTERED ACCOUNTANTS I
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiMMiiiniiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^
KENNETH BOWMAN
Chartered Accountant
(Successor to Baldwin, Dow & Bowmani
EDMONTON
ALBERTA
CHARLES D. CORBOULD
Chartered Accoantant and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. \Vinnipeg
Correspondents
. Eng.
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada Bldg., Saskatoon, Sask.
VV. A. Bawdkn. C.A. iF.C.A. England ;(nd
Wales). F. H. Kiuo. C.A.
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Brancb at Naoaimo, B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialitt on Taxation Problems
Bank of Toronto Chambers
LONDON ONTARIO
l:stablishcd 18SJ
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Cbambert
Winnipeg, Man.
Arthur E
Phillips
& Co.
Charte
red Account
ants
508-509 Elec
trie Railway
Chambers
WINNIPEG
.
Man.
Cable Address—" lnia\
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS.
24 King Street Weit - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Winnipeg, Toronto, Saskatoon, Moote Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
ECIALISTS ON FACTORY CoSTS AM) PbODLCTION
Bank of
Hamilton Bids.
TORONTO
Hubert Reade & Company
JCharlered Accountants
Auditors, Etc.
407 408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSONi & COMPANY
CHARTERED
Telepho
LUMSDEN BUILDING
ACCOUNTANTS
>e Main 7014
TORONTO, CANADA
F. C. S. TUR
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON,
GORDON & DILWORTH
Charte
R
red Acco
eceivers.
untants. Trustees.
Liquidators
Merchants Bank Bids-
15 Welti
ngton Street \Vest
Toronto
E. R. C. Clarkson
H. D. Lockhart Gordon
F
stablishcJ ISW
G. T. Clarkson
R, J. Dilworth
RUTHERFORD WILLIAMSON & CO.
Chartered Accountiinls. Trustees and^
Liquidators
86 Adelaide Strket East, TOUONTO
604 McGiLL BulLDlNi;. .MONTREAL
Cable Address 'WILLCO"
Represented at Halifax. St. John. Winnipeg.
HENRY BARBER & CO
Established
Ctinrtered Ac
1885
ountants
AUTHORIZED TRUSTEES
BANKRUPTCY
Grand Trunk Ra
6 King Street West
vay BuildinK,
TORONTO
.1. Culross Millar. C.A.
Walter J. .Macdonald. C. A.
Millar, Macdonald &
Co.
Chartered Accountants
Home Bank Building, 428 Main
WINNIPEG
Street
HARBINSON & ALLEN
ChariereJ Accounlanls
408 Manning Chambers
TORONTO
THE MONETARY TIMES
Volume 66.
DEBENTUUE INDEBTEDNESS AND RELIC.ION
Kegina School Board's Case Establishes That This is
(Juestion of Security, Not of Legality of Issue
THE Rfgina Public School Board's action against Spitzer,
Rorick and Co., of Toleao, briefly referred to in The
Monetary Times of December 24th last as being- decided in
favor of the former, brought forth some interesting points
as affecting the security and legality of debenture issues.
MacKenzie, Thom, McMorran, Bastedo, and Jackson, of
Winnipeg, were solicitors for the city.
In the spring of 1913 the school board decided to issue
debentures for $500,000 for the building of two new schools.
A representative of the firm of Spitzer, Rorick and Co., of
Toledo, was in the city abcjut that time, and on the 12th
of April, 1913, submitted an offer of 95 for the whole issue
to be taken up in instalments running to the 1st of Novem-
ber, 1913. The bond firm was to print the debentures and
the school board was to furnish complete transcripts of all
the proceedings leading up to and culminating in the issue
of the debentures, evidencing their legality to the satisfac-
tion of the purchasers' attorneys, and should those attoiTieys
deem any additional by-laws necessary the school board were
to pass same. The offer was accepted by the school board,
the debentures were printed, issued and countersigned at the
department of education and everything was going nicely
so far as the school board knew, until the 8th of July, 1913,
when Spitzer, Rorick and Co. wired to know if lands liable
to assessment for debenture indebtedness at the time of
issuing of any debentures remained liable for such deben-
ture indebtedness until fully paid, or would lands in the dis-
trict be released from liability if transferred from the pre-
sent owner to Roman Catholics. The dealers ofi^ered to, and
did take up $100,000 at the agreed price on the express
understanding that they should not waive their rights under
the contract.
Question of Security Only
The school board upon advice took the position that the
matter referred to by Spitzer, Rorick and Co. was not a
question going to the validity of the debentures. As a mat-
ter of fact, the school board was advised, and I personally
think, the law is, that a transfer of land from a Protestant
public school supporter to a Roman Catholic separate school
supporter does relieve the land from the public school de-
benture indebtedness incurred while owned by a Protestant.
The school board, therefore, submitted that the bond firm
had their own repi'esentatives here and had their own solici-
tors examining our law, and were presumed to know it, that
the debentui'es were perfectly legal under the Act and if
they did not give the debenture holders as much security
as the purchaser originally thought, it was purely a matter
of security and not of law.
The remainder of the issue, $400,000 worth, was sold
for the best price obtainable, namely, 90 to Spencer, Trask
and Co., of New York, and after a lengthy correspondence
the school board through Marshall and Fraser, attorneys
at law of Toledo, Ohio, on the 15th of September, 1914, filled
a claim for $20,000 damages in the United States District
Court at Toledo, Ohio, against Spitzer, Rorick and Co., being
the 5 point deficiency on the $400,000 worth of debentures
which they declined to take up. The case came to trial in
1917 and in January of 1919 the trial judge gave judgment
in favor of the school board for $20,000 with 6 per cent, in-
terest from the 1st of October, 1913. Motion for a new trial
was made before the same judge and refused on the 24th of
March, 1919. An appeal was taken to the United States
Circuit Court of Appeal and heard at Cincinatti and dis-
missed. A motion for rehearing was made before the same
Court and dismissed and an application to the Supreme
Court of the United States for a Writ of Certiorari was re-
fused and accordingly last month the full amount of the
judgment was paid. Incidentally, it was paid in United
States funds which realized a tidy premium in being re-
mitted to Regina.
On the trial of the action the argument with respect to
illegality on the ground of non liability of Catholic owners
to previously assessed public school debenture indebtedness
was not seriously urged, but the ground was shifted to um-
erous technical objections arising during the course of the
issue of the debentures and there were a good many of
these. The most formidable objection from the legal point
of view to be gotten over, was that the acceptance of the
school board of the bond company's offer was not under seal
and was therefore not enforceable through lack of mutuality.
What really won the school board their suit, however, was
the application of what is known as the McCarthy Case
(Railroad Co. vs. McCarthy, 96 U.S. 267), by reason of
which the Court refused to give effect to the defenses as-
serted for the reason that they were not raised at the time
the contract was repudiated nor until the filing of the answer
in the suit, more than a year later.
DOUBLE PAYMENT OF SHARES BY MISTAKE
Alberta Court Holds Stockholder's Claim Has Not Priority
Over Claims of Other Creditors
A PERSON who pays for shares of stock of a company and
afterwards pays again for the same shares in mistake and
seeks to recover the amount mistakenly paid in garnishee
proceedings, the money being in court under his garnishee
summons when the company goes into liquidation, is simply a
creditor of such company and is not entitled to any priority
over the other creditors, according to a recent decision of the
Supreme Court of Alberta.
Justice Walsh briefly sets forth the facts and the reasons
for his decision as follows: "Schultz, after paying $400 in full
for the shares of this company (Wayne Coal Co., Ltd.) stock
for which he had subscribed, paid the company again in full
for the same by mistake. He sued the company for this money
some six months after the second payment was made, and in
that action he issued a garnishee summons against the Stand-
ard Bank of Canada, which paid into court the sum of $399.25,
being the amount which it admitted owing the company at the
date of the service of the garnishee summons. Shortly after-
wards, and whilst this money was still in court, the company
went into liquidation. Schultz claims to be entitled to this
money and the liquidator also lays claim to it. The Master at
Calgary has given effect to the liquidator's claim and from his
decision Schultz appeals. The question is asked whether or not
Schultz is entitled to have this money paid out to him in prior-
ity to all other creditors.
Company a Debtor, Not a Trustee
"If the identical money which he paid in error to the com-
pany had been preserved in specie or so ear-marked as to have
retained its identity there might be some force in this conten-
tion. But that is not the case at all. What I am asked to
order is that out of the assets which should otherwise be avail-
able for distribution pari passu amongst the creditors $400
should be taken and set apart for repayment to him of the
money which the company improperly received from him. I
do not think that I can do that. In my opinion neither this
particular fund nor any other part of the assets of the com-
pany is impressed with a trust in favour of Schultz. The com-
pany undoubtedly owed- him this money, but in my judgment
as iiis debtor, and not his trustee. He sued the company
as his debtor, and so if there was any question of election about
it he determined the matter by the form of his action. His
statement of claim is not before me but it must have been
for money had and received. Under the rules he could only
have issued a garnishee summons in an action for a debt or
liquidated demand, and so it must be that his action was in a
form which clearly shewed that he treated the company as his
debtor. The garnishee summons which he issued could only
have issued upon an affidavit proving the company's indebt-
edness to him. If he was not before, I think he thereby elected
to become and became a creditor of the company and his claim
must be disposed of on that basis. If he had carried that
action to judgment it would simply have been for the recovery
of the amount of this debt."
March 25, 1921
THE MONETARY TIMES
43
iiMiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiii iiiiiiiiiiiiiiiiiiiiiiiiiliiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimini:
i REPRESENTATIVE LEGAL FIRMS |
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CALGARY LETHBRIDGE, Alta. SASKATOON
Charles F. Adams, K.C.
Bank of Montreal BIdg.
CALGARY - ALTA.
VV F
\V. Lent. K.C. Alex
LL B. H. l>. .Mann,
B. .M.
.\I.A,.
ckay, .M.A..
LL.B.
LENT,
MACKAY
&
MANN
BarrUtcrs, 8aUcllor8.
Militaries. »:tc. |
305 G
ruin F
xchange Kldg .
CalRa
ry. Alberta
Cable
Ad.lr
ess."Lenjo." \V
•stern Unton Cede \
Solic
The r
tors for The Standard
Northern Trusts Co.,
Bank
Assoc
uf Canada ■
iated .Mort-
RaRe
ors, Sc.
J. A. Wright, LI..B. C. A, Whu.ht. HCI.
WRIGHT &WRIGHT
Barristert, Solicitors, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EX)MONTON
Hon. A. C. Rutherford. K.C, LL.B.
t P. C. Jamieson. K.C. Chas. H. Grant
S. H. McCuaig Cecil Rutherford
RUTHERFORD, JAMIESON
& GRANT
Barritter*, Solicitors, Etc.
514-18 McLeod Bldg. Edmonlon, Albert*
LETHBRIDGE, Aita.
Conybeare, Church & Davidson
Barristers, Solicitors, Etc.
Solicitors for Bank of MontrciiL The Trust
and Loan Co. of Canada. British Canadian
Trust Co.. &c.. Sec.
C F. P. ConybiTire. K.C. H. W. Church. .\1 A
K. H. Davidson. LL.B.
Lethbridge - - Alta.
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE - Alberta
MEDICINE HAT
G. F. H. LON.,,
LL.B.
J. \V. Sleight, B.A.
LONG
&
SLEIGHT
BarritterM, etc.
MEDICINE
HAT
>Dd BROOKS. Alta.
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers, Etc.
Moose Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT. SASK.
C. L. DURiE, B.A. B. .M. Wakeling
DURIE & WAKELING
Barristers and Solicitors
Solicitors for the Bank of Hamilton. The
Gre.it West Permanent Loan Co. The
.Monarch Life Assurance Co.
Canada Italldlng Oa'tkntaon. Canada
TORONTO
G.
W. MORLEY & COMPANY
Barristers, Solicitors, Etc.
802 Lumsden Building, Toronto |
-Soli
-itors for A. G. Sp;ilding & Bros, of Can.,
; A. ,1. Reach Co. of Can.. Ltd.: Dominion
Ltd
Chautauquas, Ltd.. etc.. etc.
Spe
ial attention Riven to Corporation work
and collections.
Cable Addres-i: ".Morley." Toronto
VANCOUVER
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers. Solicitors, Etc.
Solicitors for Bank of Montreal (Bank of
British North America Branch)
Yorkihire Buildinf. S25 Sermoar St., Vinconver, B.C.
Your card here tvould
ensure it being seen by
the principal financial
and commercial interests
in Canada. Ask about
special rates for this page.
WE BUY WE SELL
Chauvin, Allsopp & Company^ Limited
FARM LANDS
And other good property. EDMONTON DISTRICT.
VALUATORS
Ground Floor. McLeod Building - Edmonton. Alta.
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direc* Private Wire)
Grain Elxchange
Calgary, Aita.
A. J. Pattison Jr. & Co.
Members
Toronto Stock Exchange .Wontreal Stock Exchange
Specialists Unlisted Securities
IDS BAY STREET - - TORONTO
THE MONETARY TIMES
Volume 66
News of Industrial Development in Canada
Large English Manufacturing Company Will Extend Its Operations to Can-
ada—Pulp and Paper Official Tells an Optimistic Story — Substitution of
Steel for Wooden Ships for Deep-Sea Fishing is Being Considered by Nova
Scotia Ports — Canada Iron Foundries Contemplating Extension of Plant
EXTENSION of operations of the English Electric Co., Ltd.,
to Canada has been announced from London, Eng., and
a Canadian board has been appointed with Gordon F. Perry,
president of the National Iron Corporation, Toronto, as
chairman. According to reports, large factories are to be
built in Toronto, but the office of the British Trade Commis-
sioner for Ontario has not yet received word to this effect
nor any other details, but it is expected that the plans will
be announced shortly.
In the words of Capt. E. J. Edwards, senior British
Trade Commissioner, Montreal, the entrance of the company
into this country is an event of industrial importance. He
explains that the company is a merger, two years old, of
seven large British engineering manufacturers of all kinds
of electrical railway, steam and other plant, which has more
recently joined hands with other even larger organizations,
until now it is the largest of its kind in the Empire, with a
capital of between $75,000,000 and $100,000,000, and employ-
ing, in the different plants on the other side, probably more
than 50,000 men. The participating companies include John
Brown and Co., Ltd.; Harland and Wolf, Ltd.; Dick, Kerr and
Co., Ltd.; Coventry Ordnance Works, Ltd.; United Electric
Car Co., Ltd.; Willans and Robinson, Ltd.; Phoenix Dynamo
Mfg. Co., Ltd.; Siemens Bros, and Co., Ltd.; and Siemens
Bros. Dynamo Works, Ltd.
These organizations can handle land or ocean transporta-
tion or other propositions of any magnitude, according to
Capt. Edwards, and while there is no detail yet available in
Montreal of the English Electric Co.'s plants proposed to be
established at Toronto, the event is viewed as one of the first
importance, considerably larger than any of the other enter-
prises established in Canada by old country organizations
since the war.
Sherbrooke and New Industries
A very interesting survey of the industrial situation in
Sherbrooke, Que., is presented by the Industrial Committee
of the Board of Trade in its annual report, and several points
have more than local application. With regard to the ques-
tion of new factories, the report state's that at this time there
are several angles, which are briefly as follows: — First — It
would be unwise to turn away from Sherbrooke any industry
wholly financed and which would need only our co-operation
in finding a site upon which to build a building. It would
evidence, certainly, a lack of progress to turn such factories
away. And if such an industry should become available it
is considered wise to select one, somewhat different from the
industrial classifications now existing here, in order to make
our industries more varied. Second — It is worthy of note,
however, that we are receiving applications from already
financed industries.
Third — There are some industries, partially financed but
wanting buildings already erected. There are no such build-
ings as are desired, available in Sherbrooke, at the present
time. Fourth — The finance needed for several concerns by
local men has been provided on certain conditions, the amount
ranging from $25,000 and up, but as the conditions have not
been met yet, these matters are not for publication. In
short, there are a few projects requiring the sale of stock.
The Sherbrooke investors are not looking for this kind of in-
vestment at this time, and the local money market does not
warrant the encouragement of such proposals.
Of new industries establishing plants in Sherbrooke, are
the following firms: — The Superheater Co., Ltd.; the Regal
Tire and Rubber Co., Ltd.; Cluett, Peabody and Co.; English
and Scotch Woollen Mills; Office Requirements, Ltd.; and
Pressure Proof Rings, Ltd.; besides a new model city suburb
with its 100 houses of modern design, and the technical school
and the Old People's Home which are to be constructed dur-
ing the coming year, at an estimated cost of over $600,000.
The Pulp and Paper Trade
Of late there have been numerous adverse reports re-
garding the pulp and paper industry, but George H. Cahoon,
Jr., president of the Laurentide Co., Ltd., who has just re-
turned from the United States, has a different story to tell.
Having been on a holiday trip he admits that he has been
out of touch with the situation during the past two months,
but he says that he had had an opportunity of seeing the
statistics of the various bureaux in New York, on which he
based the conclusion that the demand for paper was holding
up satisfactorily. There had been a falling-off in consump-
tion of approximately 15 per cent, from normal, but this
was due to several factors, chief among which was the
natural inclination on the part of United States publishers
to await the putting into effect of the new price of 5% cents
per pound, or $110 per ton, which will be effective from the
first of April next, before filling their usual requirements.
"The paper industry," said Mr. Cahoon, "is in a particu-
larly healthy condition. There are no large supplies of the
finished product on hand, and the general inclination on the
part of manufacturers seems to be toward curtailing produc-
tion, rather than to dissipate their valuable resources by pil-
ing up stocks. Compare the paper industry with any other
branch of manufacturing activity in this country or else-
where, and it will be clear to anyone that it is in a class en-
tirely by itself, especially so far as the newsprint situation is
concerned."
The Industrial and Educational Publishing Co., Montreal,
have decided to establish a paper mill at St. Anne-de-Belle-
vue. Que., to supply paper for their own needs and possibly
for outside trade. Publishing a large number of trade and
other journals besides doing a large job printing trade, they
anticipate being able to use themselves the greater part of
the product of the mill. They own a large piece of ground,
contiguous to their plant and near the G.T.R. and C.P.R. sta-
tions— and as the mill will be within twenty miles of Mont-
real, it is expected that waste paper collected from the
metropolis will form the principal source of fibre. Both steam
and electric power will be used.
Due to the large amount of manufactured product on
hand and the prospect of a limited market, the hydro-electric
pulp mill at Campbellford, Ont., has closed for an indefinite
period.
In connection with the general movement in the lumber
industry in New Brunswick for extended hours of labor and
reduced wages to meet the new conditions, the E. Burtt Lum-
ber Co., which operates mills at Cardigan station on the
Gibson branch of the C.P.R. and carry on lumbering opera-
tions on the Keswick River, have asked their millmen to ac-
cept a cut of 15 per cent, in wages and to return to a
schedule of 59 working hours per week. Previous to last
year the working schedule was 10 hours daily except Satur-
day, with 9 hours that day; last year there was a reduction
to 9 hours daily.
Iron and Steel
Consideration is at present being given by fishing ports
of Nova Scotia to the possibility of substituting steel fishing
schooners for the traditional wooden-built type for deep-sea
fishing. The advantages of the steel-built vessels are many.
March 25, 1921
THE MONETARY TIMES
¥F you are not younger than 22 years
* or not older than 41 years and in good
health, send for particulars of our famous
Money-Back Policy
Please state date of birth.
The Travellers Life
Assurance Company of Canada
MONTREAL, QUE.
Hon. GEORGE P. GRAHAM. Prcsuicnt.
f O N O O IV GUARANTEE AND
*-• ^"^ *~ *-' ^^^ *^ ACCIDENT COY., Limited
Head Office for Canada
Toronto
. Cont
ct. Personal Accident. Fideli;
ee. Internal Revenue. Sickness. Court Bonds.
Teams and Automobile.
AND FIRE INSURANCE
The Western Mutual Fire Insurance Co.
Head Office - Didsbury, Alberta
Pres,df>i/~H. B. ATKINS, M.L.A.
PARKER K. REKD.
Managing Director
LARGEST ALBERTA
FIRE MUTUAL
CANADIAN STRONG PROGRESSIVE
FIRE INSURANCE
AT TARIFF RATES
Merchants Casualty Co.
Head Office : Winnipeg, Man.
I he most progressiv<
supervision of the Domi
Kmbracinn the entire Dor
mpany i
1 and Pi
onof C.II
SALESMEN NOTE!
liberal protection ottered
:idcnt and health policy is the
uiii of SI.MU per month and up.
Covers over •2,.i0(l different diseases.
Pays for Life if disabled thioush .Accident i
Fifty per cent._c.xtra if conKned to hospital.
Pays for Accidental Death, <Juarantine Sui
Keon Fees for minor injuries, also for death of
Henehciary and children of the Insured.
Good Openings for Live Agents
■ Royal Banii Bklj;.. Toronto
Icctric Railway Chambers,
Winnipeg, Man.
Commercial Union Assurance Co.
l^imited, of London, England
Capital Kully .Suhscrilied 9 14.750,000
Capital Paid Up 7,37.5.000
Total Annual Income Kxceeds: 73,000,000
Total Fiiiid.s I<:\-cccd -JO!!, 000, 000
llrn<l «>m<T Canadian Rrancb :
COMMERCIAL UNION BUILDING - MONTREAL
H ALBERT J KERR. Assist.\nt .MASiiiBR. W. S. JOPLING. .Manaokr
Toronto Office - 49 Wellington Street East
GEO. R. HAKGRAFT, General Agent for Toronto an<l County of Vork
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I Automobile- 1 92 1 -Season |
i Policies to cover ANY or ALL motoring risks |
I s
I ATTRACTIVE AGENCY CONTRACTS I
I British Empire Fire Underwriters |
g 82-88 Kingf Street East, Toronto J
I Assets Exceed $4,000,000 B
.iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiii^
GENERAL
ACCIDENT FIRE AND LIFE
ASSURANCE CORPORATION, LIMITED, OF PERTH, SCOTLAND
PBLBG HOWLAND, THOS. H. HALL.
Canadian Advisory Director Manager for Canada
Toronto Agents. B. L. McLBAN, LI,MITBD
FARMERS
FIRE & HAIL INSURANCE COMPANY
FIRE, HAIL AND AUTOMOBILE INSURANCE
Head Office, CALGARY. Saskatchewan Office, REGINA
.M P. JOHNSTON. .Managins Director
CROWN LIFE
Striking Features of 1920 Business
Unprecedented volume of business.
*J- Heavy cash collections— premiums and in:eresl.
3. Low cancellation rate.
4. Low expense ratio.
r> Increase in rate of interest earned.
<». Favorable mortality experience.
7. IncLMse tn policyholders surplus.
Crown Life Insurance Co., Toronto
Agents wanted in unrepresented districts
\B
THE MONETARY TIMES
and it is understood that the Nova Scotia Steel and Coal Co.
is contemplating the construction of a steel-built, two-masted
schooner, fitted for deep-sea fishing. The company is also
investigatinK the possibility of constructfng small steel hulls.
The location of a wheel making plant to cost $150,000
as a subsidiary of its present plant in Fort William, Ont., is
in contemplation by the Canada Iron Foundries, Ltd.
The plant of the Canada Steel Foundries, Ltd., at
Longue Point, Que., has been closed, and 650 men have been
thrown out of work. Employees were asked to accept a re-
duction in wages of 20 per cent., and refused. Officials of
the company, however, state that the shops were not closed
on account of labor trouble, for there is no strike. As no
reason has been given for the closing of the plant, apparently
there is a lockout.
Lack of coal orders has resulted in a general slump in
the coal industry in Cape Breton. The Dominion Coal Co.'s
collieries are practically idle, and about 10,000 railroad
workers, miners and other classes of labor are affected.
The International Nickel Co. at Copper Cliff, Ont., has
announced a general reduction of 15 per cent, on all payroll
rates in the mining and smelter division, effective on April
15 next. Married men are not affected. At present there
are 300 part-time men at the International Co.'s smelter and
mines, a full-time force of 700 being maintained. It will not
go below the minimum of 700, and there will be no further
cuts in production or forces, officials state. There are plenty
of men available and willing to work, if only on part time.
Cheese Factories Operating
Several cheese factories in the Brockville, Ont., district
have started operations for the season. Already a few lots of
cheese have been forwarded to Montreal, the price received
being about 25 cents.
A new industry, the Thermos heating system, is opening
a factory in Winnipeg, L. P. Corbett, Toronto, manager of
the company, has announced. Mr. Corbett has just returned
from the west, where he installed this system in the Can-
adian Pacific Railway stations as far west as Wilkie. "We
expect that the western business will be better than the
east," Mr. Corbett said.
A factory for manufacturing certain lines of wood work
is to be started shortly in Mahone, N.S. Mahone Bay is
ideally situated for manufacturing anything out of wood,
as there are large areas of forests only a few miles distant
and electric power will be available by spring.
NEW INCORPORATIONS
Total Capital for Week Ended March 2.3 is $16,957,750. Com-
pared With $11,236,000 Previous Week
AUTHORIZED ca.pital of $16,957,750 is represented by com-
panies whose incorporation was reported to TIic Monetary
Times during the week ended March 22, compared with $11,-
236,000 for the previous week. A comparative summary by
provinces is as follows: —
Week ended Week ended
March 15. March 23.
Dominion $ 1,700,000 $ 5,635,750
Alberta 908,000
British Columbia 1,570,000 955,000
New Brunswick 130,000
Ontario 3,670,000 9,470,000
Quebec 3,258,000 897,000
Totals $11,236,000 $16,957,750
The following is a list of companies recently incorporated
under Dominion charter, with head office and authorized
capital: —
Partners Investment Co., Ltd., Montreal, $1,000,000;
Smith, Peabody Securities Corp., Ltd., Montreal, $1,000,000;
Kennedy Taxis, Ltd., Montreal, $500,000; International Film
Trading Corp., Ltd., Montreal, $1,000,000; Greater Cs.nada
Security Corp., Ltd., Toronto, $53,750; Gnaedinger Sons, Ltd.,
Montreal, $500,000; Bellew Barytes Mine, Ltd., Montreal,
$30,000; Canadian Financial Adjustments, Ltd., Ottawa,
$2,000; Openshaw and Bennet, Ltd., Montreal, $50,000; Elec-
tric Phonograph Co. of Canada, Ltd., Toronto, $250,000; Wal-
ter Woods, Ltd., Hamilton, $1,250,000.
Provincial Charters
The following is a list of companies recently incorporated
under provincial charter, with head office and authorized
capital: —
British Columbia. — L& Chance and Reid, Ltd., Vancouver,
$10,000; Marine Timber Holdings, Ltd., Vancouver, $200,000;
Wilson Furniture Co., Ltd., Victoria, $20,000; Leicester
Lounge, Ltd., Vancouver, $10,000; North West Realty Bond
and Mortgage Co., Ltd., Victoria, $50,000; Bazan Bay Brick
and Tile Co., Ltd., Bazan Bay, $10,000; Kelowna Working-
man's Club, Ltd., Kelowna, $10,000; Ore Hill Consolidated
Mines, Ltd., Salmo, $250,000; New York Fur Co., Ltd., Van-
couver, $10,000; Gallop Ignition of Canada, Ltd., Victoria,
$50,000; Koreen Manufacturing Co., Ltd., Vancouver, $20,-
000; Ohio Loan and Investment Co., Ltd., Vancouver, $25,000;
D. K. Book, Ltd., Vancouver, $50,000; West Vancouver Club,
Ltd., West Vancouver, $10,000; B. C. Window Bakeries, Ltd.,
Victoria., $10,000; Wise and Co., Ltd., Victoria, $100,000; Uni-
versal Shingle Co., Ltd., Vancouver, $10,000; Hammond
Theatre Co., Ltd., Hammond, $10,000; B. Holt and Co., Ltd.,
Vancouver, $100,000.
Ontario. — Walton Farmers Co-operative Co., Ltd., Wal-
ton, $10,000; Till's Garage and Livery, Ltd., Toronto, $40,000;
Phinnemore Painting and Decorating Co., Ltd., Toronto, $40,-
000; Koo-Shog Summer Hotel Co., Ltd., Toronto, $60,000;
Central Manufacturing Co., Ltd., Port Arthur, $100,000; Brit-
ish Realties and Investments, Ltd., Toronto, $40,000; Fumess-
Rogers, Ltd., Toronto, $350,000; Tomlinson and Harold, Ltd.,
Brantford, $40,000; Maritime Construction Co., Ltd., Toronto,
$40,000; Canadian Printing Co. of Sarnia, Ltd., Sarnia, $40,-
000; Russell Construction Co., Ltd., Toronto, $500,000; Thermo
Electric, Ltd., Brantford, $60,000; Middows, Ltd., Toronto,
$40,000; Canadian Home Builders, Ltd., Toronto, $200,000;
Dominion Motion Pictures, Ltd., Toronto, $600,000; Mr.aa and
McCarthy, Ltd., Toronto, $250,000; Toronto Finance Corp..
Ltd., Toronto, $2,000,000; Byron H. Turner Co., Ltd.. Little
Current, $40,000; Air-Driven Engine and Locomotive Co.,
Ltd., Sault Ste. Marie, $50,000; Federal Footwear, Ltd., Tor-
onto, $40,000; Van Allen Flax Threshers, Ltd., Toronto, $500,-
000; MitchellBros. Co., Ltd., Toronto, $50,000; Toronto Clothing
Manufacturing Co., Ltd., Toronto, $300,000; Trees Development
Co., Ltd., Toronto, $100,000; West-Beaumont Gold Mines, Ltd.,
Toronto, $2,000,000; Woodbridge Farmers' Co-operative Co.,
Ltd., Woodbridge, $10,000; Forest Farmers Building and
Trading Co., Ltd., Forest, $40,000; Earle Electric, Ltd., Tor-
onto, $50,000; Farmers' Fence Co., Ltd., Toronto, $200,000; F.
Kawakita Co., Ltd., Toronto, $40,000; Tobinson-Whyte Co.,
Ltd., Toronto, $20,000; Idea.l Cloak Co., Ltd., Toronto, $40,000;
A. Dunn and Co., Ltd., Toronto, $250,000; Dumarts Packing
Co., Ltd., Kitchener, $1,000,000; Canadian Commercial Schools,
Ltd., Hamilton, $100,000; Fuller Brush Co., Ltd., Hamilton,
$50,000; Matson and Co., Ltd., Aurora, $40,000; Code Systems,
Ltd., Toronto, $40,000; Bluebird Transit, Ltd., Toronto,
$100,000.
Quebec— A. Lecompte, Ltd., Montreal, $149,000; New
East End Garage, Ltd., Montreal, $40,000; J. N. Godin, Ltd..
Three Rivers, $299,000; La Compagnie d'Approvisionnement
d'Eau, Ltd., Cap St. Ignace, $20,000; La Comptoir de Credit,
Ltd., Quebec, $20,000; Charlesbourg Granite Co., Ltd., Quebec,
$20,000; Provincial Construction Co., Quebec, $200,000; Mont-
calm Land Co., Ltd., Quebec, $149,000.
The office of the Dominion Mortgage and Investments'
Association has been moved from 42 King St. West to 107
Bay St.. Toronto.
March 2n. 1921
THE MONETARY TIMES
47
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto ' * Sohd as the Continent." Insurance
in Force, Assets and Net Surplus all sho\v a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID AS THE CONTINENT"
HEAD OFFICE
TORONTO
Important Features of the Eighth Annual Report
OF THE
Western Life Assurance Co.
HEAD OFFICE - WINNIPEG. MAN.
Assurances, New and Revived - - - $l,2n.4 17 00
Premiums on same .... 4.'i,SiiO 00
Assurances in Force - - 3, l,SS,9:<ji.oo
Total Premium Income - 109.,S,S(S.ii;t
Policy Reserves - - - 211,4fl7(io
Admitted Assets .... 296.430.62
AveraKe Policy - - - - - 2,237,50 •
Collected in c.isli per $1,000 insurance in force 31.7.S
For particulars of a good agency apply to
ADAM REID, Managing Director - Winnipeg.
Fifty-one Years of Steady Progress
of the
The cu
nst brief yet impressive histories of Canadian fin:incial ir-
:ontainedinthe annual record of The Mutual Life of Canada,
ssiie will be ready in a few days. A copy will be sent to you
on apphc:itiQn. It contains Hfty-one successive summai ies, shi,winR in
the parallel columns the increase from year to year of the company's
various receipts, expenditures, etc. No other document could better
convey the idea of solid, uniform achievement, and the momentum of the
advance is now greater than ever. Th;: prospects are bright for a still
more rapid expansion within the next few years The assets of the com-
pany exceed $-40. 000 000. and the assurances in force have reached
$20fi,000.000. There is a gross surplus of more than five million dollars
over and above the amount necessary to guarantee all policies, so that
the position of the company, in spite of the strain of recent years, is one
of uncommon strength.
The Mutual Life Assurance Co. of Canada
Waterloo
Ontario
CO-OPERATIVE SERVICE
'PO Pulityhiildiis hutwci-n the Company .ind the .VRcnts is the secret of our
success, Hvei-y representative is given the utmost assistjince. hut he must
luuk after our clients' interests. During the last il years The CoDliacnIal Life has
built an enviahle reputation for prohipt payment of claims.
Write for hooldet. "Our B«>t AdTerliien." For Managers positions in
Ontario, applv with ri-f<>rerces, stating experience, etc . to S. S. WEAVER, E.ilern
SaperinlenJeiil, al Head Officr.
THE CONTINENTAL LIFE INSURANCE CO.
Head Office
TORONTO, ONTARIO
"For the man of vision."
Policies which may be adjusted to meet changed cir-
cumstances. The " Canadian * Series issued only by
The London Life Insurance Co.
HEAD OFFICE
LONDON. CANADA
THE REPORT FOR 1920
of the Great-West Life Assurance Company is now
in print, and will be mailed to any interested person
on request.
!t records a year of remarkable success success
founded upon twenty-eight years of remarkable
RESULTS TO POLICYHOLDERS
Over $256,850,000 of Insurance is now held in fo;ce by
THE GREAT-WEST LIFE ASSURANCE COMPANY
DEPT. ■ K •
HEAD OFFICE
WINNIPEG
The Western Empire
Life Assurance Company
Head Office: 701 Somerset Building, Winnipeg, Man.
SASKATOON
BD.MONTON
VANCOUVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office for Canada, Hamilton, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NORMAN S. JONES. Manager R. J. MAHONY, Asst Manager
Always After Agents
FOR
Fine Fields
Considerable desirable territory is open for negotiation with
men who would make capable and alert representatives.
Union Mutual Life Insurance Co^
Portland, Maine
.-Address: ALBERT E. AWDE, Supl. of Agencies
E. J. ATKINSON. Manager for Ontario.
303 Manning Chamber.. 72 Queen St. West, Toronio, Ontario
WALTER I. JOSEPH, Manager for Quebec and Eastern Ontario.
414-415 Dominion Express Building. Montreal, P.Q.
THE] MONETARY TIMES
NEWS OF MUNICIPAL FINANCE
Lethbridf^e Will Ueimburse Sinking Fund With Bonds —
Ontario Munici|)alities Gain by Amendment to
Assessmoiit Act — Glace Bay Ratepayers
Complain of Poor Management
Orillia, Ont.— The tax rate for 1921 will be 46 mills, as
compared with 47 mills last year.
Glace Bay, N.S. — A movement is on foot amongst the
latepa'yers to have legislation passed at the present session
of the provincial parliament. It is understood that a dele-
gation vi'ill go to Halifax at an early date to impress upon
the government the situation and the need of legislation. A
poor financial state of a.ffairs and bad management generally
by the council is complained of.
Edmonton, Alta. — That the city's loss on the Portland
bond deal would be .$100,000, affecting the tax rate by slightly
over a mill, is the estimate of Mayor Duggan. He points out
that no definite figure could be named now on account of the
varying rates of exchange expected during the coming month,
if the negotiations now on for the release of the securities
are completed.
In spite of the fact that the city had made a better deal
than the old price provided, this is partially absorbed by the
interest to the Imperial Bank for the temporary borrowing
of $2,000,000 on the New York redemption last January.
It is also estimated that the loss on exchange in reselling the
bonds will be around $45,000. Bank interest of 7 per cent,
on the temporary loan is estimated at $50,000, making a total
of $95,000, approximately.
Sandwich, Ont. — A reduction in the tax rate from 39
mills to 23 mills is announced by E. R. North, town clerk.
Explaining this rather unusual change, Mr. North remarks:
"In 1920 our property was not assessed at its actual value,
but only at about one-quarter of what it was worth. This
year the assessment has been raised nearly 50 per cent., and
consequently the tax rate has been lowered. Our expenses
this year will be approximately the same as last year, and
consequently with the increased assessment, the rate is re-
duced considerably. Property in Sandwich is assessed for
about $6,000,000 this year. If it were assessed at its par
value, the tax rate would be cut down to about 12 mills.
Even with the higher assessment this year, the property is
still only assessed at about half of its real value. "-
Chatham, Ont. — According to the annual report of the
Utilities Commission, there is a surplus on hand of $23,000,
which is the accumulated surplus of the various boards which
have been in charge of the hydro, and which has been raised
chiefly during the past few years. It is also reported that
the commission, besides saving this money and giving the
people service, has also paid off its own debentures with
interest.
In addition to these the present commission has estab-
lished and has now in operation an up-to-date steel plant,
manufacturing high-grade steel castings from low-grade
steel scra-p. The power used for this purpose is hydro,
supplied to the city at night, but which has never hereto-
fore been used. In this way the peak load for Chatham
is not affected, and money is made for the commission.
Lethbridge, Alta. — The burgesses of the city will be
called upon to vote on a by-law on April 8, covering the sum
of $148,118. This becomes necessary to conform to the
regulations of the Public Utilities Board of the province in
regard to payments into the sinking fund. The vote is for
the purpose of ena.bling the city to obtain bonds to be placed
in the sinking fund so that they can be sold when requii'ed
should the sinking fund need the cash, to meet the objections
of the Public Utilities Board. The bonds will be in the shape
of collateral to be placed in the sinking fund. The sinking
fund will not require the cash for the next ten years.
The object of the by-law is to reimburse the city for
funds spent in capital expenditure, and which have been
already paid for out of current funds. The amount is sprea-d
over the last seven or eight years. The by-law has received
the sanction of the utilities board, in that the sums expended,
and now sought to be bonded for payment into the sinking
fund, were before the functioning of the board in January
1, 1916, after it was brought into being in October of the
year previous.
Windsor, Ont. — Commenting on income a^ssessment in his
annual report, A. Black, assessment commissioner, says:
"Income assessment has been subject to many changes,
through amendments to the assessment act. In 1905 when
the present act went into force the exemption in urban
municipalities was $900 for householders and $500 for non-
householders. The exemption was increased every few years
up to 1920, when householders were allowed $2,000 and a
further sum of $200 for each dependent child under 18 years
of age; and non-householders were allowed $1,000. The
increased exemptions of 1920 caused a large reduction in
the number of persons assessable in the urban municipali-
ties of the province, the net decrease for Windsor being 100
E'S compared with 1919, but the returns show that the actual
decrease was 170.
"Through the united efforts of the assessment commis-
sioners of the province, the government was induced to
amend the assessment act by making stock holders assessable
for income derived from shares or stock held in any incor-
porated mercantile and manufacturing company. This
amendment ha^s more than recouped the municipalities for
the loss caused by the increased exemptions of income de-
rived from personal earnings. Moreover, it has shifted the
burden of taxation from the shoulders of the wage earner
to the shoulders of the capitalist who can better afford to
pay the tax. Notwithstanding the reduction in the number of
persons assessed for income, the assessment from this source
has been increased by the sum of $165,650, exclusive of $84,-
000 involved in the city's appeal to the Appelate Court."
Athabasca. Alta. — Brief mention was made in these
columns last week of a deadlock between bondholders and
the town council, and as a result the town council had re-
signed. The incidents leading up to this action date bad;
five or six years. In 1915 the council recognized that diffi-
culty would be experienced in raising the amount of money
necessary to retire the debenture repayment of $14,000 an-
nually, and in 1916 notified bondholders that it anticipated
such difficulty in meeting future payments, but nothing defi-
nite was arrived at as a result of this notification.
In January, 1917, when the payment of interest and
principal was due the council informed the purchasers of
the bonds that it was unable to pay. In May of the same
year the council made a proposal to the bondholders, setting
out an amount that the council considered it could pay an-
nually, and thereby extending the life of the debentures for
a period of fifteen years, without interest, which would mean
that the bonds would produce 4% per cent, instead of the
original 7 per cent., but pointed out that in the suggested
rean-angement the bondholders would still receive 100 cents
on the dollar. This suggestion was turned down and a counter
proposal made. The matter then hung fire until the Municipal
Finances Commission was formed by the provincial govern-
ment, and the council made application to that body to have
its affairs investigated, and this was done at a meeting of
the commission held in Edmonton, January, 1920.
The Act empowering this commission provided that any
finding that it might make in connection with the readjust-
ment of debenture i-epayments must have the approval of
three-fifths of the holders of the amount of the issue, thereby
allowing- the bondholders to dictate its tei-ms. The commis-
sion at a later date drafted an order which was received by
the town almost a year later in Januarj', 1921, which was
essentially a reproduction of the previous proposals, which
had been carefully considered by the council and found im-
practicable. After further consideration of the finding of
the commission the council appealed to the provincial gov-
March 25, 1921
THE MONETARY TIMES
49
C.P.R. BUILDING
TORONTO
nC}USSERW90D>^°C>MPANy
INVESTMENT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
REAL ESTATE
Farm Lands City Properties
Building Management Rentals
OSLER, HAMMOND & NANTON
WINNIPEG
Messrs. Harris, Forbes & Company
Incorporated, announce the removal of
their Toronto office to larger quarters in
the Canadian Pacific Railway Building.
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur BIdg., WINNIPEG, Canada
Member* of Winnipeg Real Elstate Exchange. Winnipeg Stock Exchange
c.
H.
BURGESS & CO.
Government and
Municipal Bonds
14
King Street East
Toronto
ACCOUNT BOOKS
Loose I^eaf I^edgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
Exceptional —
— both for safety of principal and surety of
return is tfiis
7% Canadian Industrial Bond
with a bonus of Common Stock payable in New
York funds.
Ask us for full particulars
R. M. HEFFERNAN & CO., Limited
IMESTME.XT BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
50
THE MONETARY TIMES
Volume 66.
ernmeiit to consider a readjustment and not to confirm the
finding of the commission.
Owing to its inability to advise on such a readjustment
the council found it necessary to resign rather than take the
responsibility for levying a rate which it considered would
be prohibitive and altogether beyond the means of the
town. There are only approximately forty resident rate-
payers, and the order refen-ed to provided for additional
assessment of the improved property in the town. A
well-attended meeting of the resident ratepayers was held
at Athabasca, when the mayor, W. J. Dent, ex-Mayor F. R.
Falconer and the secretary-treasurer, J. P. Evans, explained
the history of the financial condition of the town, and showed
that the council had now taken the only course left open.
The meeting unanimously approved the action of the council
in resigning. The whole matter now rests with the depart-
ment of municipal affairs, who have been notified of the
action of tne council.
Government and Municipal Bond Market
British Columbia Sells Securities for Disposal in United States — Nova Scotia Will Borrow — Legisla-
tion to Guarantee Irrigation and Drainage Bonds Will be Introduced by Alberta Government-
Quebec Roman Catholic School Commission Makes Loan at Better Rate Than Previous Issues
xMPROVEMENT in the government and municipal bond
1 market continues, although the movement is less per-
ceptible. In the past two weeks, the activity m Ontario
municipals has somewhat diminished, but there have been
substantial offerings from other quarters, and some of these
have been taken up at better prices than previously noted.
The Montreal Protesta.nt School issue was purchased on a
6.20 per cent, basis last week, while this week, the Quebec
Catholic School bonds found a buyer at (5.14 per cent.
The principal event of the week was the sale of $2,000,-
000 British Columbia bonds, but this will not affect the
Canadian market, as these were bought for disposal in the
United States. Another provincial issue is pending, namely,
Nova Scotia. These securities will be made payable in Can-
ada or the United States at the option of the purchaser.
Victory bonds continue to change hands in fairly sub-
stantial volume, with prices steady. There were fractional
declines in two issues this week, as illustrated by the follow-
ing figures:—
1922
1927
1937
1923
1933
1924
1934
Control
price.
. 98
. 97
. 98
Last week.
High. Low.
This week.
High. Low.
96^2
97
93
98%
97%
99%
98
98%
961/2
981/8
97
9914
97%
98
9514
94y8
97%
99%
97%
98%
961/2
951/4
97
99%
971/4
98
96
94%
Ever since the Lethbridge Northern Irrigation District
$5,400,000 7 per cent. 30-year bonds failed to attract offers
last January, the trustees and all those interested in the
district have been waiting anxiously, although not without
anticipation, for the definite announcement by the provincial
government of its policy in regard to the guara-nteeing of
irrigation bonds, and last week the hopes of all were realized
when it was decided at a caucus of private government mem-
bers to give complete and full guarantees of both interest
and principal on the bonds of organized irrigation districts.
Coupled with this was a statement that the government in-
tends to place drainage schemes on the same guarantee basis.
Coming Offerings
The following is a list of debentures offered
particulars of which have been given m this or
issues: —
Borrower.
Amount.
Drumhelle
r, Alta
$ 28,000
Yoi-k Twp
, Ont.
200,000
Joliette, Q
Pipestone
47,000
R.M.,
Man
80,000
Belleville,
Ont.
90,000
Caledonia
Twp.,
Ont
50,192
Nokomis,
Sask.
20,000
Belle Plaine, Sask.. .
15,000
Kamsack.
S&sk.
13,400
Rate'
. Maturity.
20-instal.
20-instal.
10-years
20-years
20-instal.
15-instal.
20-insta.l.
15-instal.
for sale,
previous
Tenders
close.
Mar. 26
Mar. 29
Mar. 30
Mar. 31
Apr. 4
Apr. 15
Nokomis, Sask.— Tender's will be received for $20,000 8
per cent. 15-instalment debentures. (See advertisement else-
where in this issue.)
Township of York, Ont. — Tenders will be received until
March 29, 1921, for the purchase of $200,000 6 per cent. 20-
inst&lment hydro-electric debentures.
Belle Plaine, Sask. — Tenders are invited until April 4,
1921, on $15,000 debentures, repayable in 20 annual instal-
ments. L. P. Wisbey, secretary-treasurer.
New Liskeard, Ont. — An issue of debentures to provide
for financing the new pumping system of the municipal
waterworks is being disposed of locally at par.
Ellice R.M., Man.— None of the tenders on the $49,000
6 per cent. 30-year good roads debentures, guaranteed by the
province, were accepted, and the securities are being sold
locally.
Kamsack, Sask. — The town is offering $13,400 7 per
cent, electric light debentures, repayable in fifteen equal
annual instalments. The net profit of the electric light de-
pai'tment for 1920, according to L. W. Andrews, the treas-
urer, after paying all operating and overhead expenses and
expending an amount of $9,494 on capital account, was $6,792.
(See official notice elsewhere in this issue.)
Toronto Township, Ont. — Neelys, Ltd., have purchased
$79,600 6 per cent. 20-instalment debentures at a price of
98.75, which is on about a 6.15 per cent, basis. Public ten-
ders were not asked, but a few bond dealers were asked to
bid. About a year ago the debentures were put on the market
and were purchased by C. H. Burgess and Company, but
through some tecnicality they were turned back upon the
municipality. An Act has been passed by the Ontario legis-
lature, however, validating the issue.
Debenture Notes
Craik, Sask. — Ratepayers have authorized the raising
of $66,000 for school purposes by debentures.
Toronto, Ont.— The board of control has sanctioned an
issue of debentures by the Toronto Harbor Board to the ex-
tent of $4,000,000.
Essex County, Ont. — Authorizing the expenditure of
$650,000 to build good roads, the council has passed by-laws
for a bond issue covering the amount.
Glace Bay, N.S. — An act authorizing the issue of $200,-
000 6 per cent. SO-yeaa- school bonds, is being sought by the
school board of the city council, which body will in turn have
to obtain the pel-mission of the provincial legislature.
Danville, Que. — All tenders have been rejected for $33,-
000 6 per cent, bonds, of which $18,000 mature in 1940 and
$15,000 in 1957. The Municipal Debenture Corporation sub-
mitted the highest tender at 99.66 for the short maturity and
95.73 for the long.
Brandon, Man.. — The amendments committee of the pro-
vincial legislature has given approval to the city's request
to sell 7 per cent, debentures to the extent of $100,000 for
the establishment, maintenance and equipment of public play-
grounds. The city also was granted permission to cancel
March 25, 1921
THE MONETARY TIMES
51
From
Our March Bond List
These are two of the attractive offerings
contained in our March list.
Province of Manitoba Guaranteed
Registered Stock (issued by C.N.Ry.)
Rate Maturity Price Yield
4% .... 30June. 1930 .... 81.86.. .6.60%
City of Fort William
5%... 1 Aug., 1927.... 91.65 ....6.60%
Write for this List. It will interest you.
Wood, Gundy & Company
Canadian Pacific Railway BuiMm^
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
m^mmm^^w^Mm^m
IHVESTWtNT- SERVICE \
Falling
Prices
No Calamity
Why a lower margin of profits
strengthens, rather than weakens,
the fundamental soundness of the
Canadian pulp and paper industry is
clearly shown in the current edition
of Investment Items.
Every holder of Canadian industrial securi-
ties of any description should read Investment
Items each month.
Write for a copy to-day.
Royal Securities
^ ^CORPORATION
LIMITED
MONTKEAL
TORONTO HALIFAX ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. En».
SMMdMJlMJiJUiJAMJAUMJ^-^^^^^^.t^^
W. L. McKlN.NON
DHAN H. PKTTES
We Buy and Sell
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Government and Municipal Bonds
McKINNON BUILDING -:• TORONTO
Telephone Adelaide 3870
Increase the Return
on Your Investments
Send for our circular describing
Howard Smith Paper Mills
Bonds, rvhich are being offered
at a very attractive price
R. A. Daly & Co.
BANK OK TORONTO BUILDING
TORONTO
$50,000
Province of Saskatchewan
6% Bonds
Maturing
February 1st. 1936
interest payable 1st February, and
1st August each year at Toronto,
Montreal, Winnipeg and Regina.
Price on application
W. A. MACKENZIE & CO., Limited
Covcnmenl ana Mi^nicpal Bonds
Corporalion Securities
42 KING STREET WEST
TORONTO - CANADA
THE MONETARY TIMES
Volume 66.
5 per cent, debentures to the extent of $19,000 and substitute
6 per cent, debentures maturing July 1, 1943, for the same
amount. This sum represented part of a $200,000 issue at
5 per cent, made in 1913 for the Brandon waterworks. The
request was preferred on the grounds that the city could not
obtain money at 5 per cent. The committee accorded similar
permission in connection with the balance of $72,000 of an
issue for $280,000 5 per cent, debentures for the Brandon
General Hospital. These will be issued at 6 per cent.
Saskatchewan. — The following is a list of authorizations
gr'anted by the Local Government Board from March 5 to 12,
1921:—
8 per cent. 10-year Annuity Schools — Pitt, $3,000; Loon
Lake, $1,000; North Star, $1,500; Lone Spruce, $1,200; Al-
luvia, $1,.500; Crocus Vale, $3,.500; Wimmer, $4,.500. Pine-
hurst, $3,000 8 per cent. 10-years instalment. Rosewood,
$7,000 8 per cent. 20-years annuity.
Village. — Hawarden, $1,500 8 per cent. 7-years instal-
ment, for plank sidewalks.
Nova Scotia. — The province is calling for tenders on $1,-
500,000 6 per cent, bonds. It is understood that alternative
offers are requested for 5 and 10-year bonds, payable in
Canada and United States, or 15 and 20-year bonds, payable
in Canada only.
Bond Sales
Eastview, Ont. — Turner, Spragge and Company have pur-
chased $38,000 7 per cent. 20-year debentures at a price of
102, and $26,000 6% per cent.* 20-year debentures at 96.25.
Proceeds of the issue will be used for sidewalks, water ser-
vices and other local improvements.
Montreal West, Que. — Several blocks of bonds, totalling
$282,000, bearing interest at 5% per cent, and maturing in
10, 20, 30 and 40 years, have been sold to Versailles, Vidri-
caire and Boulais at a price of 91.8625, which means that the
municipality pays about 6.15 per cent, for its money. Tenders
were as follows: —
Versailles, Vidricaire and Boulais 91.8625
Dominion Securities Corporation 90.67
Hew R. Wood and Co 90.478
Hanson Brothers 88.87
Beausoliel, Ltd., offered 94.50 for the 10-year bonds,
which amounted to $34,000.
British Columbia. — The Dominion Securities Corporation
and Dillon, Read and Company have purchased $2,000,000 6
per cent. 5-year bonds, payable in Canada and the United
States, at a price of 103.77, which means that the province
pays about 5.15 per cent, for its money for the present. The
cost of the loan will be greater in the long run.
The following is a list of tenders: —
Payable Canada and U.S.
5-yr. bonds. 10-yr. bonds.
Dominion Securities Corporation . . . 103.77 101.317
Carstens & Earles, and Seattle Na-
tional Bank 102.3152 99.351
W. A. Mackenzie & Co., R. A. Daly
& Co., and R. P. Clarke 102.22 98.72
R. C. Matthews & Co., Halsey Stuart
& Co., A. Jarvis & Co., Minnesota
Trust and Loan Co., and Wells-
Dickey Co 101.92 99.66
Blyth, Witter & Co 101.07 98.621
A. E. Ames & Co., and Wood, Gundy
& Co 99.54 97.39
20-year bonds, payable Canada only: —
Dominion Securities Corp., A. E. Ames & Co., and
Wood, Gundy & Co 95.35
W. A. Mackenzie & Co., R. C. Matthews & Co., and
R. A. Daly & Co 95.31
Han-ison Bros, and A. Jarvis & Co *95.21
Schools. — Yorkton, $45,000 20-years 7 per cent.; Regina
Sinking Fund Trustees. Cabri, $3,500 15-years 8 per cent..
Nelson, $3,000 10-years 8 per cent., St. Imre, $600 8-years
8 per cent., Tarnoville $1,175 10-years 8 per cent., McLaren,
$1,400 10-years 8 per cent., Sniatyn, $2,000 10-years 8 per
cent.; C. C. Cross and Co., Regina. Pauline, $3,800 10-years
8 per cent.; Waterman- Waterbury, Regina. West Otthon,
$850 5-years 8 per cent.; Chas. Reusch, Otthon.
Rural Telephones. — Victor, $1,000 15-years 8 per cent.,
Ridpath, $1,000 15-years 8 per cent.; A. L. Koyl and Co., Sas-
katoon. Renown, $4,000 15 years 8 per cent., Kansas, $3,800
10-years 8 per cent.; H. C. Well, Regina. Dinsmore, $1,500
15-years 8 per cent.; Wood, Gundy and Co., Saskatoon. Bert-
dale, $6,300 15-years 8 per cent.; C. C. Cross and Co., Regina.
City.— Saskatoon, $52,200 20-years 6y2 per cent.; Sas-
katoon Sinking Fund, Saskatoon.
Tovim. — Kerrobert, $4,500 10-years 8 per cent.; various,
KeiTobert.
Rural Municipalities.— Star City, $12,000 10-years 8 per
cent.; various, Naisberry. Norton, $6,000 10-years 8 per
cent.; C. C. Cross and Co., Regina.
Three Rivers, Que. — The Provincial Securities Company
has purchased $250,000 6 per cent. 30-instalment debentures
at a price of 97.77, which is on about a 6.20 per cent, basis.
Tenders were as follows: —
Provincial Securities Company 97.77
Beausoliel, Ltd 96.97
A. E. Ames and Company and G. L. Beaubien
and Company 96.33
Versailles, Vidricaire and Boulais 96.07
Rene. T. Leclerc 95.64
Hanson Brothers 94.37
Toronto, Ont. — The Separate School Board has awarded
to the National City Co., Ltd., $350,000 6 per cent. 20-year
debentures at 96.79, which is on about a 6.29 per cent, basis.
Tenders were as follows: —
National City Co., Ltd 96.79
United Financial Corp., Ltd 96.17
Dominion Securities Corp 95.86
Dyment, Andex'son & Co 95.52
A. Jarvis & Co 95.41
Wood, Gundy & Co 94.54
Quebec R.C. Schools, Que. — There was keen competition
for the $700,000 bonds of the commission, which are guaran-
teed by the city of Quebec, and the margin between the
highest and lowest bid was very small. Alternative offers
were a.sked for 6 per cent. 10-year bonds, or 5V2 per cent.
30-year bonds. The former type of security proved to be
the most popular. The United Financial Corporation, Ltd.,
got the bonds at a price of 98.92, which is on about a 6.14
per cent, basis. Tenders were as follows: —
6% 5V27c
10-years. 30-years.
United Financial Corp., Ltd 98.92
Versailles, Vidricaire & Boulais, and
Municipa.l Debenture Corp 98.89 91.08
Harris, Forbes and Co., Inc., Dominion
Securities Corp., and Hanson Bros. 98.87 89.491
Rene T.. Leclerc 98.76
Nesbitt, Thompson & Co., Foreign Se-
curities Co., and Foster, Riepert,
Barrett & Low 98.53 91.085
Provincial Securities Co 98.30 ....
Wood, Gundy & Co 98.28 90.623
A. E. Ames & Co., and Nation&l City
Co., Ltd 98.277 90.377
G. L. Beaubien & Co 98.25
*For $1,000,000, with option on the balance.
Saskatchewan. — The following is a list of debentures
reported sold by the Local Government Board from March 5
to 12, 1921:—
Bryant, Isard and Co., members of the Toronto Stock Ex-
change, have opened a bond department under the manage-
ment of Gordon G. MacLaren, formerly of Turner, Spragge
and Co., Toronto.
March 25, 1921
THE MONETARY TIMES
53
$25,000
CITY OF HALIFAX, N.S.
53 % BONDS
Due July ht, 1953 DenominaUons. $1,000
Prinoipa! and semi-annual interest pay-
able at Toronto, Montreal, Halifax.
Price : 92.85 and accrued interest
YIELDING 6%
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX, N.S.
We Offer
$100,000
Dominion of Canada
Long Term Bonds
Yielding Over 6%
The Best and most marketable
Security obtainable in Canada.
5X% Viclorn Bonds. Due 1934
Price on application
BOND DEPARTMENT
The Canada Trust Coi*\PANY
14 King St. E. - - - Toronto
Western Municipal & School
Debentures
TO YIELD
6%
71'
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
INVITED
UNION TRUST BUILDING
WINNIPEG
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches— SASKATOON AND CALGAKV.
Canadian Managers
WE have 450 good businesses for sale in the central
portion of Alberta. Everything from a General
Store to a small Confectionery
If you v^ant a business in Alberta you want us.
WHYTE & CO., LIMITED
Business Brokers
111 Pantagea Building - Edmonton, Alberta
Elconomical Mutual Fire Ins. Co.
HEAD OFFICE .... KITCHENER. ONTARIO
cash and mutual systems
Total Assets, $97.'>,6uO Amoijnt of Risk, $28,641,000
Government Deposit, $50,000
john pbnnbll.
President
GEO. G. H. LANG.
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cahle Address. Topecn. Western In. :ind ABC., .sth Rdition
CALGARY, CANADA
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C H MACAl'l-AV
J. P. NICOLLS. .Votary Piiblii
LOUGHEED & TAYLOR, Limited
INVESTMENT SECURITIES
210 Eighth Avenue West
CALGARY
ALBERTA
P.
M. LIDDELL & COMPANY
Inveslmenl Bankers. Fiscal Agents
Insurance Brokers
825-7-8 ROGERS BUILDING, VANCOUVER, B.C.
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. W. .MAHAN
President
J. A. WEST.MAN
.Managing Dii
X
Waghorn Gwynn & Co., Limited
Stock and Bond Brokers
Financial Insurance, and Real Estate Agents
VANCOUVER
THE MONETARY TIMES
Volume 60.
CORPOKATIOX SECURITIES MARKET
Stock Prices Continue to Pursue Irregular Course— New
Stock of Price Brothers is on Three Per Cent. Basis
NOTHING occun-ed in the Canadian stock markets this
week to give a new view of the general situation. At
first it seemed as though prices were on the mend, and some
observers, bolder than the rest, ventui-ed the opinion that the
turn had arrived, but subsequent events proved differently,
and sui-\ey of the lists at the close on March 22 revealed a
goodly number of net declines for the week. As one financier
has candidly put it, even the most experienced obsei-ver feels
himself unable to foresee with any confidence the probable
drift of things. The change may come from causes as unex-
pected and as suddenly as those which came into view on the
side of reaction and depression last fall. It does seem, how-
ever, as if the stock markets have taken into account every-
thing of significance, but if such be the case, it does not
necessarily mean that prices will go up. If the bears are
played out and the bull element is unable to find anything
to work upon, the natural result will be a dull pei-iod. Money
is easy and has been for some time, but this is of secondai-y
consideration.
General Electric's Movements
One thing of considerable interest in financial circles was
the annual report of the Canadian General Electric Company,
but the announcements contained therein, both usual and
unusual, had already been anticipated and discounted by the
market, and the stock of the company receded slightly. That
the report is a good one, and that the prospects for the future
are bright, is clearly evident. With the two per cent, bonus,
the dividends paid to shareholders last year were on the same
basis as in the nine years pi-evious to 1908. From 1909 to
1919 a conservative policy in regard to dividends had been
conducted by directors, and as a result a very substantial
surplus, in addition to an adequate depreciation reserve, has
been built. A 20 per cent, stock bonus will be distributed
to shareholders, but still the reserve will stand at a good
figure.
Trading in listed stocks in Montreal for the five days
ended March 22 resulted in a turnover of 51,343 shares, com-
pared with 54,805 in the six previous days, while in Toronto
the figure was 10,242, as against 20,088. Bonds changed
hands on the Montreal exchange to the extent of $637,461,
compared with $1,431,200 a week ago, while the turnover in
Toronto was $1,155,500, as against $1,503,110 previously.
The directors of Price Brothers, Limited, have declared
their first dividend since the distribution of their stock by the
old company. This dividend is at the rate of three-quarters
of one per cent., and leads to assume that the company has
gone on a 3 per cent, dividend basis. At the time of the
reorganization of the company's capitiil last year share-
holders received five new shares for one old one, so that the
dividend basis on the old capital would have been at the rate
of 15 per cent. It is understood that the company's officials
are at present busily engaged providing the necessary data
for the Montreal Stock Exchange Committee to have the new-
stock listed on as early a date as possible.
Pedlar People Bond Issue
The Pedlar People Ltd., of Oshawa, through H. J. Bir-
kett and Company, are offering $275,000, the unsold balance
of an issue of $500,000 of 8 per cent, first mortgage bonds,
maturing $25,000 each year from 1923 to 1940, and $50,000
in 1941. The company itself is a close corporation, and the
whole of its $400,000 "of capital stock is held by the Pedlar
family and those who have been associated with it for the
past twenty yeai-s. The business was started by the late
George H. Pedlar in 1861, and the present company was
formed in 1892. A new factory has just been erected, and
the present bond issue is to care for it. Last year's profits
of the concern were $140,000, equal to three and a half times
interest on the bonds. The companys business is the manu-
facture of sheet metal roofing, automobile parts, garages, etc.
An offering of $200,000 8 per cent, cumulative first pre-
ference shares of the Great West Gannent Company, Ltd.,
Edmonton, is being offered in the west at par ($100), with
a bonus of one participating second preference share. The
authorized capital of the company consists of $375,000 8 per
cent, cumulative first preference shares, $125,000 participating
second preference shares with a par value of $25, and $250,-
000 common shares, of which $125,000 is convertible into first
preference. There is no bonded debt. The company manu-
factures workingmen's clothing, and distributes its own goods
in the west. It is well known, and the present issue is needed
to take care of the growing business.
Reference was made in these columns last week of the
offering of £300,000 7 per cent, prior lien debentures of the
Canada Land and Irrigation Company in London, England.
A report from Alberta states that this company owns the
new irrigation project at Vauxhall, where it has 200,000 acres
of irrigated and 300,000 acres of dry land. Its assets are
just now beginning to make a return after more than ten
years of construction work on the iiTigation project. It. is
the opinion that the company has a block of the finest iiTi-
gation land in Canada, plenty of water for 200,000 acres, and
eventually the undertaking will pay out and make a big profit
for the shareholders. Heavy land sales in the Vauxhall dis-
trict will be made this year.
Clarke Brothers Issue
An offei-ing of $1,250,000 7 per cent, first mortgage 15-
year sinking fund bonds of Clarke Brothers Paper Mills, Ltd..
is being made by John Stark and Company, Toronto, at 97.
with a bonus of 30 per cent, common .stock. Clarke Brothers
Paper Mills. Ltd., was organized under a Dominion charter
fully avoiding any action which may jeopardize the funds
in 1920, is an enterprise associated with Clarke Bros., Ltd.,
which was formerly a partnership of W. G. and W. W.
Clarke, who have been in business for over forty years at
Bear River, N.S., during which time they have developed and
successfully established a series of allied industries, based
chiefly on the products of the forest. Clarke Bros., Ltd.,
own the majority of the stock of Clarke Bros. Paper Mills,-
Ltd., and bars guaranteed this issue of bonds as to principal,
sinking fund and interest.
An attraction of the present issue of bonds is that prin-
cipal and interest are payable in New York funds. Sinking
fund payments will b? made annually, commencing 1925.
UNLISTED SECURITIES
, Jr.. & Co.. Tjn
AbitibiGen.Mtge.6sC40)
Aita. Pac. Grain... com.
" " pref.
Blacl< Lake com.
Brand r'm-H'ndes'n. pref.,
British Amer. Assurance
Burns, P. 1st MtBe. 6's..
Can. Machinery — com.
6's.
Canada Mortgage
Can. Oil com.
Can. Westinghouse
Can. Woollens com.
Cockshutt Plflrw.7%pref.
CoUingwoodShipb'dg.tj's
Crown Life Insurance...
Cuban Can. Sugar
Davies William ...
B's'
Dom. Iron SSteelS's 1939
Dom. Power com
■■ pfd,
DrydenPulp com
DunlopTire pref
Eastern Theatres, com.
C.oodyear Tire. ...7% pfa.
Gunns. Limited pref.
Harris Abattoir 6's
Home Bank
Imperial Oil
Imperial Tobacco., com.
Internatinnal Milling.S's
King Edward Hotel. ..7's.
Lake Superior Paper. 6's.
Loew's, London. .. .com.
Loew's Toronto com.
Manufacturers Life
Bid
Ask
67
70.75
37
87
90
18
20
87
93
10
14
61
58
66
S9
95
99
102
101
105
4.50
4.90
90
75
SO
93
96
5.75
i'76
100
200
Massey-Harris
Mattagami Pulp... com.
...pref-
Merchants Fire
Mexican Nor. Power. .S's
Morrow Screw 6*s
Murray-Kay pfd.
National Life
Neilson, Wm 6"s.
North American Pulp ...
North Star Oil pref.
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Peoples Loan i^ Savings-.
Riordon . -com. (new stk.)
R. Simpson pfd.
R'b'ts'n,P.L. Screw.com.
Southern Can. Pow.com.
Southern Can. Pow.pref.
St. Lawrence Sugar. 6*s.
Sterling Bank
Sterling Coal com,
Toronto Paper 6's.
Toronto Power. S's ( 19241
Trust & Guar...
United Cigar Stores com
-pref.
Western Assurance-
VVhalenPtilp com,
" " pref
March 25, 1921
THE MONETARY TIMES
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Yean
lo uUU I
I 7 lo 7S % I
We Specially Recommend these Bonds as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Royal Bank Chambers
CALGARY
Bank of Toronto Bldg
EDMONTON
The Bond House of British Columbia
WE ARE :n the market for
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C. Victoria, B.C.
YOUR 1921
VACATION
— Where are you going to spend it ?
Get away from the beaten paths this year — See
for yourself the wonders of your great West.
Broaden your knowledge of Canada.
VANCOUVER
BRITISH COLUMBIA
promises you a vacation that is different — gives
you a world of new sights and sounds — offers a
trip that is a liberal education in itself.
The Transcontinental Trip over the great Western
Prairies the world's greatest granary across the Can-
adian Rockies Nature's rugged grandeur at its best.
A Week in Vancouver— more if possible— every hour packed
with interesting sights Beautiful English Bay -Sea bathing
in the waters of the Pacific-
World famous Capilano Can-
y6n-one of Canada's great
natural wonders — Stanley
Park— l.COO acres of Forest
Beauty, etc. Trips for every
hour that you will never for-
get. Motoring Golfing —
Hunting — Fishing.
VISIT
Van
THIS
Summer
al r
Cli
heat— Nights alu
Address Vancouver Publi-
city Bureau (J. R. Davison.
Mgr.l Room 50. 330 Seymour
St.. Vancouver. U.C.
NOTICE
TENDERS FOR PULPWOOD AND TIMBER LIMIT
Tenders will be received by the undersigned up to and
including the 4th day of July, 1921, for the right to cut pulp-
wood and pine timber on a certain area situated in the
vicinity of Long Lake, District of Thunder Bay.
Tenderers shall state the amount per cord on pulpwood,
and per thousand feet, board measure, on pine, that they
are prepared to pay as a bonus in addition to dues of 80
cents per cord for spruce and 40 cents per cord for other
pulpwoods, and $2.50 per thousand feet, board measure, for
pine, or such other rates as may from time to time be fixed
by the Lieutenant-Governor-in-Council, for the right to oper-
ate a pulp mill and a paper mill on or near the area re-
ferred to.
The successful tenderer shall be required to erect a
mill or mills on or near the territory, and to manufacture
the wood into pulp and paper in the Province of Ontario.
Parties making tender will be required to deposit with
their tender a marked cheque, payable to the Honourable
the Treasurer of the Province of Ontario, for fifty thousand
dollars ($50,000), which amount will be forfeited in the
event of the successful tenderer not entering into agreement
to carry out conditions, etc.
The said $50,000 shall remain on deposit until the pulp
mill, as provided by terms and conditions of sale, is erected
and in operation. Any timber cut in the meantime shall be
subject to payment of dues and bonus as accounts for same
are rendered. After the said pulp mill is erected and in
operation, the deposit of $50,000 may be applied on account
of bonus dues as they accrue, but the regulation dues, as
mentioned above, shall be paid in the usual manner as re-
turns for cutting of wood and timber are received and ac-
counts rendered.
The highest or any tender not necessarily accepted.
For particulars as to description of territory, capital to
be invested, etc., apply to the undersigned.
All tenders .should be enclosed in sealed envelope and
marked plainly on outside, "Tender for Long Lake Pulp and
Timber Limit."
BENIAH BOWMAN,
Minister of Lands and Forests.
Toronto, January 24th, 1921.
N.B. — No unauthorized publication of this notice will be
paid for. 493
Investment Holders
Increase Your Income With Safety
We request you to send us. without obligation, a
list of your holdings.
We may be able to suggest a method of increasing
your income without decreasing your security.
Your Investment Business ivill be appreciated
Gillespie, Hart & Todd, Ltd.
Head Office
711 FORT STREET,
VICTORIA, B.C.
Branch
414 PENDER STREET,
VANCOUVER, B.C.
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
.pfd
Abitibi P..'(:P...
Asbestos Corp..
pfd,
Ames-Holden pfd.
AtL-intic Sugar
Bell Telephone
Brazilian T.L.& Power
B.C. Fish
Brompton Pulp & P. . .
Canada Cement
■ ...pfd.
Can. Con
Canadian Cottons. pfil.
CanadianCar
■• pfd.
Canadian Gen. Elec.
C. P. R
Carriage Fact
Can. Steamship
•■ •• pfd.
■• •• deb.
" " Vot. Trust
Con. Minings Smel...
Det. Rys
Dom. Canners
Dominion Bridge
Dom. Iron pfd.
Sales Open High Low Close
Doi
Gla;
Dom. Steel Corp.
DominionTextile
Howard Smith
Illinois Tract...
Kaministrqua .
Lake of the Wo
Laurentide . . .
LyallCons
Macdonald Co.
.Montreal Cotto
Montreal Powe
Tram
Deb.
Telegraph...
National Breweries.. .
N.S. Steel pfd.
Ogilvie Flour Mills ....
pfd,
Ont. Steel
Ottawa
Penmans
Price Bros
Prov, Paper,
Quebec Kn L. H iV 1
Riordan PulpS l\ ■
ShawmiganW.&P
,pfd.
Spanish Rii
,.pfd,
" Div. Vou,
Steel Co, of Canada...
■ •• _ •• pfd.
Toronto Ry
Twin City
Wayagamaclt P. & P,,
Wabasso Cotton
Winnipeg Ry
Woods Mfg. Co,... pfd
Kniik.s
Commerce
Hamilton
Hochelaga
Merchants
Holsons
Montreal
Nationals
Nova Scotia
Royal
Standard
Union..
.Asbestos Corp
Bell Telephone Co.
Can. Car
Can. Cement
Can. Cottons
Can. Rubber
Cedars Rapids Mfg
City Mont. Dec. 6's, 1922
" .May 6's,
" Sept.6's.l923
Dom. Can.W.Loan.l925
19S1
1937
Victory Bonds, 1924.
1934.
1922.
1927.
1937.
1923.
1933.
33(X>
4300
IIOU
l.iSOS
4400
22304
12070
174048
44960
ilSOS
37522
38990
96236
424
92J
92t
97i(
97j
96
96*
H.'i
9Si
985
97l
98!i
97+
99j
99:!
97t
97i
98;
98*
.=i9i
82|
70i I 70*
93;
27*
M»}iTB.KAl~Confinued.
Bonds
Sales Open High Low Close
4000
1000
Dom. Cottons ...
Dom. Coal
Dom. Iron
Dom. Steel
Dom. Textile —
Lake of Woods..
Mont. Power . . .
Mont. St. Ry
National Breweries ... I
Ogilvie Flour 25000
Penmans i ...
Price Bros ! 1000
Quebec Ry.L.H.S P..., 19600
Scotia
Sherwin-Williams. ,
West Kootenay |
Wabasso Cotton
Wayagamack P. & P. . .
Winnipeg Elec
TORONTO— Five day.s Ended Mar. 2%n<l.
Canada Cement .
Canada Steamship.
Con. Gas
Coniagas . , .
Crows .\est..
Dom. Iron,,.
Sales Open High Lo
Dom, Steel Corp.,
Ford Motor
La Rose
Loco
Mackay Compani(
Maple Leaf
Pac.Burt pfd.
Prov. Paper
■• pfd.
Quebec R.L.H. & P
Riordon
Salesbook pfd.
Sawyer-Massey
,.,,pfd.
elte
Spanish River.
ronto Ry
in City
nnipegElec.
Banks
Hamilton .
Imperial .
Nova Scoti:
Royal
Standard. .
Toronto
Can. Land
Can. Perm
Dom. Sav
Lon. & Can
Nat. Trust
Toronto Mtg
Toronto- Gen. Trusts,
Bonds
Can. Bread
Elec. Dev
Ogilvie
Rio. Jan. T., L. & P..
Sao Paulo
Steel of Can
lioj
TOKONTO— Con<iKi<ed
War Iioans
Dom. Can.W.Loan, 1925
1931
1937
Victory Loan 1922
1923
1927
1937
1933
1924
1934
Sales
Open
High
Low
94*
4800
95
95
1500
92
92j
92i
62100
971
98
97S
130550
98
9S|
98
43400
971
97S
974
105800
97
97S
97
299150
99
99?
99J
182400
98
981
98
189250
96|
96*
96
108000
95
95i
94j
WINNirEC-.SIx days ended .Mar. ISIh.
Victory Loan 1922..
■■ 1923..
'■ 1924..
■■ 1927..
■• 1937..
" 1933..
" 1934.
War Loan 1925
" 1931 ....
" 1937
Gt, West Perm
Stanilard Trusts .,
L'niiHi Bank
WL-sttrn Crncers .
12.500
15000
2950
5500
7500
17400
52800
100
500
High Low ! Close
944
92i
97i
\KW ¥ORR— Week ended .Mar. I»lh.
Canadian Pacific
Canada Southern
Nova Scotia S. & Coal.
Granby Consolidated . .
Bonds
Dom. of Can. 5% 1921
5*% 1921
5% 1926
5i% 1929
46000 .
10000 .
SlOOOi.
106000 .
5% 1931] 320001 .
Sales Open High Li
Ontario Silver Mining,
93i : 93"
LONDON, Eug.— Six days ended Alar. 4lh.
<>OT*t. A Mnn.
Alberta 4% deb, 1938...
Canada.. 34% 193050...
•• ....3% Reg...,
" ..,.4% 1940-60,
■' ,,,, 4j% 1920-25
Edmonton 5% bds. 23-53
5% debs...,
" 4i% debs -32-52
Lethbridge44,„debs...
Nfld.347obds
N. Battleford 54% deb.
Montreal 4 j% Reg
4% 1948-50...
Quebec 4%, 1888
44% Reg
■■ 3% bds
Sask'wan 5|% db,'24-34
Saskatoon ,5%
Toronto 4% bds
34% 1929
Victoria 4% debs
3% cons
34% 1923
3i% 1929-49,,,
54% cons.
Winnipeg 44% 1943-63..
Kailnays
Can. Nor. 4% deb
•; 4%cons.deb.
Pac. 4%deb.
Can. Pac
" 4% deb.
" 4% pfd.
G.T.P. Br. 4% bd 1939.
-G.T.P.4%deb
G.T. p. 4%1955
Gr. Trunk. . , . 4% guar.
Gr. Trunk5% 1st. pfd..
Gr, Trunk 5% 2nd pfd,,
Gr. Trunk 4% 3rd pfd..
Gr, Trunk 4% cons
Gr. Tr. West. 5%deb..
Ont. & Quebec 5% deb.
P, Gt, East,44%deb.'42
Ind., Fin., Etc.
Can, Cement 7%
6% bds
Can, Car 6% hd
Can, West L
Can. Gen, Kkc
Shawinigan w ,:
Toronto Pow. a
Van, Pow, 4* i, K
Can, Bk, of Com
B.ink Montreal, ,
I'd-
6ii
High Low Close
72|
S2|
824
March 25, 1921 THEMONETARYTIMES 57
liMiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiyiiiiiiiiiiiiiiiH^ iiiiiii iiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii mil iiniiii « iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiih^
Satisfactor}; Service
Prudential Trust Company^ Limited
Dominion Charter authorizes the Company to act in the
following capacities:
RELATIVE TO ESTATES — Administrator, Executor, Guardian, Management of
Properties, Collection of Rents, Real Estate Bought, Sold and Exchanged.
FINANCIAL AGENTS— Investments Made— Securities Held.
INSURANCE BROKERS-All lines— Fire, Marine, Accident, Liability, etc., placed
in best Companies at lowest Rates.
FIDUCIARY — Trustees for Bondholders, Transfer Agents, and Registrars for Stocks
of Companies.
The business generally which a Trust Company may undertake alone, or jointly with
one or more.
Consultation invited by letter or in person.
B. Hal Brown, President
J. P. Steedman, Vice-President
Head Office: MONTREAL
Branches throughout Canada and in London, Eng. sog j
liiiiiiHiiiiiiliiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniHiiiiiiiiiiiii
LONDON BOND CORPORATION
The London Bond Corporation, Ltd., announce the in-
creasing of their capital from $100,000 to $500,000. The
volume of business handled by this concern has grown con-
siderably, and it was found advisable to increase the capital
to take care of future business, which is expected to be large.
The company deals exclusively in guaranteed govern-
ment, municipal and corporation bonds. They are also inter-
ested in the financing of well-established local industries.
The directors of the company are as follows: George M. Reid,
president; T. P. Allan, vice-president; A. T. Little, P. A.
Thomson. J. E. Magee and E. D. McNee, directors. E. B.
Almon, manager.
INSURANCE RATES TO BE REVISED
The Halifax rate situation was the subject of consider-
able discussion at a special meeting of the Canadian Fire
Underwriters' Association which was held recently. The man-
agers present interested in Nova Scotia concun-ed in the view
that prompt measures should be taken to put Halifax upon
a proper rating basis, and the result was the appointment
of a committee of six managers, of which W. E. Baldwin,
of the Continental Insurance Company, was made chairman.
This committee will shortly proceed to Halifax to meet the
Nova Scotia board, and to insist that a verj' much higher rate
be established until conditions are radically improved. It is
expected that the committee will stop at St. John and be
joined there by some of the provincial managers, so that it
will be representative in character, embracing managers from
Montreal, Toronto and the maritime provinces. This, it is
expected, will accomplish some satisfactory' results.
The Nova Scotia Board of Fire Underwriters has re-
quested the National Board of Fire Underwriters to send
some of its fire protection engineers to Halifax to reinspect
the city of Halifax with a view of determining its proper fire
protection classification. WTien this is arrived at the Nova
Scotia board, by comparison with that of other cities, can
formulate the proper base rate for Halifax and the applica-
tion of the C.F.U.A. rating schedule should then produce
adequate as well as equitable rates. Considering structural
conditions and deficiency of fire protection in Halifax, it is
contended that a revision of rates is necessary.
DEBENTURES FOR SALE
TENDERS FOR DEBENTURES
TOWN OF KAMSACK
Tenders will be received by the undersigned up to five
o'clock p.m. on Friday! April 1,5th, 1921, for the purchase
of $13,400.00 of 15-year "'V Electric Light Debentures. Re-
payable in equal annual instalments of principal and interest.
Neither the highest or any other tender necessai-ily
accepted.
L. W. ANDREW,
Treasurer,
296 Kamsack, Sask.
ARE YOU BEING SUPPLIED with the vital details of
your business? Do you know each month your Sales, Gross
Profit and Expenses? In these times you cannot aiford to
guess. If you are in need of a pi-actical accountant — ten
years' experience in Importing, Manufacturing and Automo-
bile Business — apply Box 405, Monetary Times, Toronto.
58
THE MONETARY TIMES
Corporation Finance
Canadian General Electric Had Prosperous Year— Stock Bonus to be Paid Out of Surplus
Earnings— Canadian Pacific Maintained from Railroad and Lake Steamer Revenue, but
Only by a Very Narrow Margin — Special Income Account Made Fine Showing^National
Breweries Working Capital Impaired as a Result of Extensions— Some New Financing is
to be Done to Liquidate Obligations and Complete Work Already Under Way
Quaker Oats Co. — The end of 1919 showed a surplus of
three-quarters of a million, but the year 1920 closed with a
deficit of over eight millions. For the first half of the year
business was reported good, "out in September began what
H. P. Cowell, president, refers to as "an economic storm, the
like of which has never been known." The total inventory
shrinkage amounts to over five million dollars. The net re-
sult of the year is a shrinkage in profit and loss surplus
from $11,565,588 to a balance of but $1,263,163 at the first of
this year. Of this $2,250,000 is attributable to a 25 per cent.
common stock dividend declared last September.
Reference is made to the company's Canadian plants by
the president in the statement that accumulated provision of
$711,735 is made for exchange loss of foreign assets, includ-
ing Canadian assets in excess of permanent working capital
of $4,000,000.
Port Hope Sanitary Manufacturing Co., Ltd. — Profits
were $81,212 in 1920, before providing for depreciation, in-
come tax and other charges, compared with $132,015 in 1919.
.4fter deducting interest and bank charges, depreciation, etc.,
amounting to $34,605, compared with $52,604 previously,
there remained a net profit of $46,610, compared with $79,-
411. The company's cash position shows little change, cur-
rent assets being $250,729, compared with $302,834, and cur-
rent liabilities $40,017, compared with $71,116. Total assets
are $1,436,524, against $1,401,412.
Speaking of the record of the past year, L. M. Wood,
president, states that the volume of business showed a sub-
stantial increase, while profits were considerably reduced.
"The year opened with a rush and promised a largely in-
creased business with good profits, but operating conditions
became so difficult, owing to scarcity of raw materials, un-
reasonable demands from labor, and poor production, that
the slump in business, which developed in the fall, was in
many respects a distinct relief. Necessary adjustments
were being made to get back to conditions approaching
normal, and the plant is now operating on a much more
satisfactory basis than for some time past.
Northern Ontario Light and Power Co. — Gross earnings
of the company for 1920 amounted to $909,427, compared
with $835,126 in 1919, an increase of 8.90 per cent. Accord-
ing to the report of D. Fasken, president, the increase would
have been much larger, if the small rainfall had not neces-
sitated a curtailment in the supply of power.
After deducting operating expenses, maintenance, taxes,
etc., there were net profits of $605,940, compared with $573,-
401, an increase of 5.67 per cent. Further deductions for
bond interest, exchange, charges, etc., left a profit for the
year of $298,285, as against $286,920, a gain of 3.96 per
cent. Adding the surplus of $654,576 from the previous year,
there was then a total surplus of $952,861, from which $250,-
000 was transferred to reserve, against $125,000 in the pre-
vious year, and a preferred stock dividend of $142,968 paid,
leaving a surplus at the end of the year of $559,893. Total
assets are now $13,470,890, compared with $13,322,759. Do-
minion government bonds held by the company were in-
creased by $120,000, making a total investment in those se-
curities of $370,500.
National Breweries, Ltd. — Trading profits of the com-
pany for 1920 show but a small decline from the previous
year, the figure being $976,609, as compared with $1,061,350
in 1919 and $616,265 in 1918. After deductions for deprecia-
tion reserve, bond interest and preferred dividends, there re-
mained a balance of $598,988 applicable to the common stock
outstanding, representing 26.57 per cent., or $6.64 per share
on the $25 par value securities. The year's result in this re-
spect compared with 24.23 per cent, in 1919, and 10.5 per
cent, in the preceding period. Dividends on the common de-
ducted, there remained a surplus of $238,300 to carry for-
ward into the current year, against $479,346 in 1919, and
$236,509 in 1918. The balance standing to the credit of
profit and loss account, as at December 31 last, amounted to
$1,618,238.
The balance sheet, in some respects, was not as favor-
able as the earnings statement, however, working capital
showing a severe impairment, as a result of extensive addi-
tions and improvements eff'ected during the year. The sharp
reduction in net current assets was due primarily to the
existence in 1920 accounts of bank loans totalling $1,000,000,
an increase of nearly $500,000 in bills and accounts payable,
and by reductions of some $535,000 in investments, and $200,-
000 in cash on hand.
At the annual meeting, V. Boswell, one of the vice-presi-
dents who presided, forecasted new financing to liquidate
outstanding obligations and provide for the completion of
work already under way, the cost of which would be ap-
proximately $500,000. No indication was given as to tVie
total amount of new financing in contemplation. The posi-
tion of working capital during the past three years follows: —
1920. 1919. 1918.
Current assets $2,447,076 $2,681,369 $2,462,652
Current liabilities 1,809,739 350,237 256,640
Working capital $ 637,337 $2,331,132 $2,206,012
Other changes are not very important, but the principal
comparisons are: —
1920. 1919.
Property $6,158,973 $4,569,834
Bonds 1,500,000 1,580,000
Depreciation reserve . . 235,304 495,382
Total assets $10,192,581 $8,834,857
Canadian Pacific Railway. — Earnings equivalent to 11.4
per cent, on the $260,000,000 common capitalization, are
shovra in the annual statement of the enterprise for 1920.
compared with 10.8 per cent, in 1919; 10.97 per cent, in 1918;
15.89 per cent, in 1917; and 16.76 per cent, in 1916. The in-
crease in percentage, which takes into consideration the in-
clusion of special income, is accounted for more by the latter
item than from the railways and lake steamers only, which
showed a reduction from the preceding year, and is the small-
est since 1917, the year in which the company began issuing
statements for a fiscal year ending with December 31.
Last year, earnings on the common stock, outside of
special income, equalled 7.17 per cent.; in 1919, 7.32 per
cent.; in 1918, 7.85 per cent.; and in 1917, 11.78. In 1919
earnings from special income equalled 3.48 per cent., against
last year's 4.23, the latter incidentally being the largest in
the periods mentioned above. Gross earnings of the railway
last year were the largest in its history, totalling $216,641,-
349, against $176,929,060 the preceding year, and $157,537,-
698 in 1918. Operating expenses at $183,488,305, how-
ever, showed an almost corresponding increase, and with
an increase of over $600,000 in fixed charges, and de-
ducting the usual $500,000 pension fund reserve, the balance
left for dividend distribution amounted to $21,877,635, about
$393,891 down from the preceding year.
March 25, 1921
THE MONETARY TIMES
After dividends, a surplus of $450,359 compared with
$844,250 the preceding year, and $2,203,621 in 1918. Special
income at $10,966,448 showed an increase of over $1,900,000,
and after dividends of 3 per cent, had been deducted, and the
balance added to previous surplus the present surplus at
credit of special income amounts to $18,580,291.
Over a period of three years, the principal items in the
earnings statement compare as follows: —
1920. 1919. 1918.
Gross earnings $216,641,349 $176,929,060 $157,537,698
Working expenses . , 183,488,305 143,996,024 123,035,310
Net earnings 33,153,044 32,933,036 34,502,388
Fixed charges 10,775,409 10,161,510 10,177,513
BaJance after preferred 18,650,359 19,044.250 20,403,621
Common dividend . . . 18,200,000 18,200,000 18,200,000
Net surplus 450,3.59 844,250 2,203,621
Special income 10,966,448 9,049,342 8,128,751
Balance after dividend 3,166,448 1,249,342 328,751
Surplus 18,580,291 15,413,843 14,164,501
Canadian General Electric Co., Ltd. — Prosperity is
written plainly in the annual report of the company for 1920.
During the last six months of 1919 the company's orders
exceeded any similar previous period, and that growth in
the volume of business accepted both continued and increased
last year, and at the close there were carried over uncom-
pleted contracts amounting to seven and a half million dol-
lars.
Profits for the year amounted to $2,213,731, as compared
with $1,617,989 in 1919, from which is deducted the sum of
$326,300 for interest and $530,741 which has been reserved
for depreciation, leaving a net profit of $1,356,689, compared
with $1,093,320. Dividends at the rate of 8 per cent., per
annum and a bonus of 2 per cent, were paid on the common
stock and 7 per cent, on the preference stock, leaving a>
balance of $342,574 carried to the credit of profit and loss
account, which added to the balance of $436,097 brought
forward from the previous year makes a total of $778,672
at the credit of that account. This amount, together with
the reserve of $5,000,000 makes a total surplus of $5,778,672.
In his report, Frederic Nicholls, president says: "While
dividends have been earned and paid since the company was
first organized, your directors have always been careful
to set aside from year to year an adequate sum for deprecia-
tion and reserve. As a result of this eonsen'ative policy,
continued over a long period, the amount at the credit of de-
preciation reserve stands at $5,091,949, and the amount at the
credit of surplus account stands at $5,778,672. Having in
mind the fact that our shareholders in the past have been
agreeable to the policy of a reasonable distribution of the
profits earned, in order that the company might build up
a substantial reserve, it is proposed to submit to the share-
holders at a special general meeting to be called for the pur-
pose, a proposition whereby a portion of our accumulated
surplus may now be distributed to the common stock holders
in the form of a stock dividend of 20 per cent."
The balance sheet shows the following principal
changes : —
1920. 1919.
Capital assets $ 14,752,057 $12,783,496
Inventory, etc 9,892,969 6,043,173
Accounts receivable 4,757,942 3,426,397
Investments 894,086 576,914
Total current assets 16,091,604 10,705,961
Bills payable and current liabili-
ties 8,463,245 2,403,364 -
Common stock 8,754,400 8,000,000
The company has no outstanding bonds, debentures,
mortgage or prior liens of any description, other than a
nominal charge of $63,750 on properties purchased, and on
which existing mortgages still current are not due.
Niagara Falls Power Co. — The consolidated annual re-
port of the Niagara Falls Power Company and the Canadian
Niagara Falls Power Company shows total operating revenue
of $6,031,950, being an increase of $933,850 over the previous
year. From this, operating expenses, taxes and amortiza-
tion took $2,352,023, an, increase of $610,853. After interest,
dividends and other charges, the net income amounted to
$2,241,148, as compared with $2,084,055 in 1919.
Tlie officers of the company and its board of directors
confidently look forward to an early and full resumption of
former activities of the great industries of the Niagara
frontier. They have every reason to believe that the demand
for low-priced electric power and reliable service, which has
progr-essively increased during the two decades last past, will
continue in growth for many years, and that such recessions
as from time to time may occur will be slight and of short
duration.
West India Electric Co., Ltd. — Gross earnings of the
company for 1920 amounted to $490,180, showing an increase
of $106,516 over the previous year. Operating expenses
reached the figure of $354,360, an advance of almost the
same as that in gross earnings, so that net amounted to
$135,820, as compared with $136,066. After all other charges,
net income stood at $74,538, as against $83,567 in 1919 and
$89,602 in 1918.
In his report to shareholders, James Hutchinson, presi-
dent, says: "The receipts from all departments of the com-
pany's business were most satisfactory, the largest since the
inception of the enterprise, but the difficult conditions per-
taining to operation which existed during the previous year
continued throughout 1920. The higher scale of wages for
motormen and conductors came into effect on the 1st of
January, and there were also increases to the staffs of the
different departments. An unfortunate loss of a cargo of
coal in the early spring through shipwreck had, through the
peculiar situation which existed in the fuel market, to be
replaced at much higher prices, which added very materially
to the cost of operating the auxiliary steam station. The
expenditure on account of injuries and damages exceeded
very largely that of all former years. These Vk'ere the con-
tributing factors to the very large inci-ease in operating
expenses, which reached the high figure of 72.30 per cent,
of the receipts."
The balance sheet shows few changes of significance.
Investments are lower, while cash is higher. Surplus stands
at $680,238, compared with $627,076 previously.
Dominion Engineering Works, Ltd. — The first annual
statement of the company consists of a balance sheet and
a directors' report. Assets are shown at $8,544,102, com-
prising in part $22,000, $4,500 bills receivable, $430,037 in-
ventories. Lands and buildings are \alued at $1,275,038,
machinery and tools at $1,601,975, and contracts, patents and
goodwill at $4,136,824. Suspended assets, including starting
expenses, etc., amount to $130,239. Besides the $8,000,000
preferred and common stock, liabilities consist of $260,000
notes payable, $52,515 bank overdraft, and $231,586 accounts
payable and accrued charges.
Directors report that during the year there has been
installed a large proportion of the additional plant i-equii-ed
for the manufacture of water turbines of all capacities, in-
cluding the largest possible to transport. Turbines are being
made for Laurentide Power Co., Montreal Power Consoli-
dated, Shawinigan Water and PoVer, and Spruce Falls Com-
pany. These are ten turbines in all comprising over 110,000
h.p. in all. The Cedars Rapids wheels are duplicates of those
already installed, and were until last year the largest wheels
that had been built. The Shawinigan wheel will be the
largest wheel of this type in exist'ence.
The business entered up to the 31st December, including
that taken over from the Dominion Engineering and Ma-
chinerj' Company ,amounted to $3,400,000, approximately
distributed: Paper-making machinerj', $1,700,000; hydraulic
machinery, $1,650,000; foundry sales, $56,000.
The Dominion Engineering Works, Lt<l., is a subsidiary-
of the Dominion Bridge Company, and was formed last year
to produce in Canada machinery which comes largely into
use in the development of the production of power and the
manufacture of pulp and paper. An ©fleering of $1,400,000
8 per cent preferred stock was made last summer at 98, with
a bonus of 25 per cent, common.
THE MONETARY TIMES
Volume 66
RECENT FIRES
Plant of IIowc Sound Mining and Smelting Co. at Britannia
Beach, B.C., Destroyed — Departmental Store of Crummy
Bros., Ltd., (irande Prairie, Alta., Also Destroyed
Beafon.<field, Ont. — March 15 — Two barns on the farm
of O. C. SovereiKn, situated on the Stone Road, in North
Norwich township, were destroyed by fire. The total damage
is estimated at $3,500, with insurance of .$l,15ft. The barns
were struck by lightning.
Belleville, Ont. — March 17 — The farm buildings and con-
tents on the farm of Robert Wadsworth at Paudash Lake,
North Hastings, were destroyed by fire. The loss is partly
covered by insurance.
Brandon, Man. — March 15 — The home of John Zeneski,
456 Twenty-first Street North, was destroyed by fire. The
loss is estimated at $800, with insurance of $500. A defec-
tive stove was the cause of the fire.
Britannia Beach, B.C.— March 20 — The plant of the Howe
Sound Mining and Smelting Co. was destroyed by fire. The
plant was valued at $750,000.
Cayuga, Ont. — March 21 — The Cayuga High School was
damaged by fire with a loss of $30,000, while the insurance
is $10,000.
Dundurn, Sask. — March 16 — The home of Martin
Shkwarok was destroyed. One fatality.
Grande Prairie, Alta. — March 18 — The department store
of Crummy Bros., Ltd., was destroyed. It is believed that
the blaze originated as the result of a coal gas explosion.
The loss is estimated at $100,000.
Hamilton, Ont. — March 16 — One of the buildings of the
Grasselli Chemical Works, Burlington Street East, was de-
stroyed. The loss was covered by insurance.
March 17 — The residence of H. L. Ferrey, 55 Fairleigh
Crescent, was damaged. The fire, which was caused by hot
ashes, did damage amounting to $1,500. The Empire Build-
ing, King William and Hughson Streets, was damaged. The
loss is $2,000.
Maxville, Ont. — March 17 — A restaurant, occupied by A.
Poulos, was damaged to the extent of $2,000, with no insur-
ance.
.Medicine Hat, Alta. — March 15 — The home of A. E.
Bai-ker, 708 Eighth Street, was damaged. The fire, which
was caused by an ovei-heated stove, did $200 damage.
New Toronto. Ont. — March 19 — Fire caused by overheat-
ing in the drying-room destroyed the top and part of the
first floor of the New Toronto Leather Works. The loss is
estimated at $15,000.
St. Scholastique, Que. — March 19 — Damage estimated at
$18,000 was done by a fire which destroyed a garage and a
store, and did considerable damage to two dwellings.
St. Stephen, N.B. — March 19 — Sampson's garage and the
carria^ge factory adjoining were destroyed by fire.
Sault Ste. Marie, Ont. — March 17— The residence of Mr.
Andrews, 412 Charles St., was damaged by fire. There were
four fatalities.
March 21 — The residence of Stephen Dean, of Taren-
torus Township, was destroyed by fire, together with the
contents.
ADDITIONAL INFORMATION CONCERNING FIRES
Alexandria, Ont. — March 3 — The grocery store belong-
ing to John Boyle was destroyed by fire. The loss is $9,000,
with insurance of $4,515 in the Merchants and Norwich Union
insurance companies. R. H. Cowan's hardw&re store was also
destroyed, with a loss of $23,500. There is insurance of $9,-
100 in the Northern, Guardian, Norwich Union, Liverpool
and London and Globe, Caledonia and Monarch insurance
companies.
Lethbridge, Alta. — February 1 — The blacksmith's shop
of the Federal Coals, Ltd., was destroyed by fire. The loss
is $2,266, with $1,600 insurance in the following companies:
Alliance, British General, London Guarantee and Accident,
Scottish Union and Springfield insurance companies.
Lethbridge, Alta. — February 8 — In the vicinity of 9th
Ave. and 8th St. South, there were two houses dama^ged by
fire and also two barns at the rear. The fire is believed to
have started by the overheating of a stove in one of the
barns. The total loss is $6,344 with insurance of $4,369.
Loiselleville, Ont. — February 26 — Loiselleville Catholic
School was damaged by fire with a loss of $5,800. There
was an insurance of $4,400 in the London Mutual Fire Insur-
ance Co.
Manitoba. — The fire commissioner's statement of fires
for the month of January show that during the month there
were 124 E'larms, with an estimated loss of $366,166. There
was one fatality. The following were the causes of fires:
Stoves and furnaces, 29; chimneys, 16; smoking, 12; elec-
tricity, 11; hot ashes, 9; matches, 7; spontaneous combus-
tion, 5; explosions, 3. The following are the class of struc-
tures damaged: Dwellings, 53; farm buildings, 17; stores, 7;
apartment buildings, 5; garages, 4; theatre, 1.
Medicine Hat. Alta. — March % — A frame building, which
was used as a garage by the Canada Land and Irrigation
Co., Ltd., was destroyed by fire. The loss is $2,800, with in-
surance of $1,550 in the Royal Exchange Insurance Co.
Montreal, Que. — February 18 — A fire broke out in the
residence of F. LaRoque, 39 Maria St., doing $800 damage
to the contents. There is insurance of $800 in the Sun Fire
Insurance Co.
Montreal, Que. — February 28 — A fire broke out on the
premises of the General Cigar Co., Ltd. (controlled by Im-
perial Tobacco Co.), corner Parthenais and Amity Streets.
Insurance as follows: — North America, $30,000; United
States, $15,000; Prov. Wash., $10,000; Firemen's Fund,
$10,000; Alliance, $12,500; Employers, $10,400; Nova Scotia,
$10,000; General of Perth, $12,000; Canada Security, $5,000;
Canadian Fire, $7,500; Globe Indemnity, $19,000; National
of Hartford, $30,000; Century, $12,500; Beaver, $2,500; New
Jersey, $2,500; British Dominions, $10,000; Fidelity-
Phenix, $10,000; Phenix of Paris, $6,000; Globe and Rutgers,
$10,000; Glens Falls, $10,000; Vulcan, $7,000; London
Mutual, $5,000; Traders and General, $5,000; National Bene-
fit, $8,000; Niagara, $10,000; Yorkshire, $7,500; Great Am-
erican, $7,500; Westchester, $5,000; Northern, $5,000;
Springfield, $10,000; Royal Scottish, $10,000; Queensland,
$10,000; Liverpool and London and Globe, $10,000; British
Dominions, $10,000; Niagara, $10,000; Norwich, $5,000; Com-
mercial Union, $5,000; North British and Mercantile, $25,-
000. Total, $395,200. Loss about $35,000.
Saskatoon, Sask. — Februa.ry 16 — The Cahill Block was
destroyed by fire with a total loss of $158,630, with insurance
of $178,500.
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways for the first two weeks in
March :—
Canadian Pacific Railway
1921. 1920. Inc. or dec.
March 7 $3,255,000 $3,244,000 -}- $ 11,000
March 14 3,176,000 3,130,000 -f 46,000
Canadian National Railway
March 7 $2,049,345 $1,690,099 + $ 359,246
March 14 2,229,596 1,625,485 + 604,111
Grand Trunk Railway
March 7 $1,764,250 $1,654,205 + $ 110,055
March 14 1,841,416 1,753,684 4- 87,732
r
)'IRL1SHKD EVKOV FkiOAY
in
The Monetary Times
; Printing Company
of Canada, Limited
:■.' I'uWisl.cr-, 3lsc-| ,,f
I*,' The Canadian Engineer ""
imctarj ffitmcs
Trade Review and Insurance Chronicie
of (Tanada
Established 186';
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
February Bank Statement
Current Loans Increase Slightly, While Demand Deposits and Circulation Were Much Lower
— Savings Continue to Trend Upward — Ratio of Quick Assets Showed Smaller Percentage,
But the Liquid Position Improved Slightly on the Whole — Security Holdings Increased
February, January, February, Year's Month's
1920. 1921. 1921. inc. or dec. inc. or dec.
Deposits on demand $ 620,069,55.5 S 584,025,710 $ 561,578,474 — 9.5 — 3.9
Deposits after notice 1.187,027,307 1.313.093,870 1,318,855,482 +11.0 +0.4
Current loan.s in Canada 1,257,015,902 1,264.490,463 1,266,23,5,381 +0.7 +0.2
Current loans elsewhere 180,711,238 173,379,729 163,044,476 — 9.5 — 5.8
Loans to municipalities 52,690,790 59.637,682 67,719,881 +28.8 +13.6
Call loans in Canada 127,251,919 112,474,318 112,680,497 — 11.8 +0.18
Call loans elsewhere 184,469,882 191,854,003 190,413,527 +3.2 — 0.5
Circulation 223,979,666 229,608,213 211,640,296 —5.4 —7.9
T T can hardly be said that the changes in the February
■'■ bank statement throw any new light on the business situ-
ation generally. A small increase in current loans seems to
indicate a slight revival in trade, but on the other hand, the
large decline in circulation reflects fewer transactions by
wholesalers and retailers, with due consideration for the de-
cline in prices, of course. It may be that manufacturers are
preparing for the improvement in trade, thus accounting foi
the increase in loK.ns, but the change has not been very sig-
nificant.
Call loans in Canada are moderately higher, but this
account, as compared with a year ago, indicates a falling off
in activity on the stock excha^nges. The course of the current
and tall loans in Canada during the past thirteen months is
•jiven in the following figures: —
Current in Call in
Loans. Canada. Canada.
1920— February $1,257,015,902 $127,251,919
March 1,322,267,030 128,233,310
April 1,347,238,230 125,644,859
May 1,349,079,981 119,114,493
June 1,365,151,083 115,272,.587
July 1,377,276,853 115,360,894
August 1,385,470,153 113,598,923
September 1,417,520,756 114,669,611
October 1,405,401,227 113,13,5,902
November 1,;!.57,973,118 108,471,340
December 1,301,804,342 114,703,246
1921^anuary 1,264,490,463 112,474,318
Februarj' 1,266,235,381 112,680,497
Call Loans Abroad
The decline in call loans abroad is the result of the con-
tinuance of the liquidation of speculative accounts on the
New York e.\change. This liquidation has been so thorough,
that the employment of American bank resources in demand
loans is probably smaller in the aggregate than in a number
of years. Canadian banks have been affected largely, but
such loans are still some .1:6,000,000 above a year ago. The
monthly movement of call loans abroad since January, 1918,
is illustrated by the following figures: —
January
February
Ma.rch
April
May
June . . . .
July . . . .
August
September
October
November
December
132
160
167
179
172,
170,
167,
160
159,
157,
171,
1,50,
1918.
?
,687,066
,239,494
296,701
,818,531
259,879
034,476
,112,836
,544,990
680,810
040,858
035,732
248,322
1919.
$
140,819,656
155,983,681
160,116,443
155,533,666
157,176,.325
167,236,045
178,098,434
174,176,578
169,532,489
158,194,085
169,626,880
172,232,161
1920.
1921.
170,206,805 191,854,003
184,469,882 190,413,527
205,202,133
206,229,451
213,964,182
219,214,431
203,045,209
193,888,245
186,962,960
188,367,459
218,183,194
211,442,652
The following table shows the
during recent years: —
Current loans Current loa-ns
Feb. in Canada. elsewhere.
1915 ..$ 771,635,208 $ 43,661,379 i
1916 . . 760,873,181 56,099,719
1917 . . 813,302,717 86,944,450
1918 . . 859,363,147 109,678,140
1919 . . 1,095,301,791 130,590,063
1920 . . 1,257,015,902 180,711,238
1921 . . 1,266,235,-381 163,044,476
principal loa-n accounts
Call loans
in Canada.
; 67,-591,769
81,949,125
78,786,535
76,722,163
79,154,121
127,251,919
112,680,497
Call loans
elsewhere.
$ 89,890,982
139,138,651
162,344,556
160,239,494
155,983,681
184,469,882
190,413,527
From the above figures it will be seen that current loans
elsewhere a-nd call loans in Canada are the only two accounts
below last year's record. The falling off in the first-men-
tioned account reflects to a certain degree the condition of
business abroad, in comparison with the situation in Canada.
Loans to municipalities increased 13.6 per cent, last
month, in accordance with the usua-l tendency at this time of
the year, when councils must borrow in anticipation of the
year's receipts. Advances to provinces have followed a fairly
even course, and are now but a few thousand below a year ago.
Trend of Deposits
Demand deposits aga-in substantially decreased, but
savings deposits were considerably higher. The trend during
the past few months is illustrated by the following figures: —
THE MONETARY TIMES
Volume 66.
Chartered Banks' Statement for February, 1921
LIABILITIES
NAME OF BANK
CAPITAL STOCK
Notes
circulation
Bal. due
to Dom.
Gov. after
deducting
advances
for credits.
pay-lists,
etc.
Balances
due to
Provincia
Govern-
ments
Bank of Montreal
Bank of Nova Scotia
Bank of Toronto
The Molsons Bank
Banque Nationale
Merchants Bank of Canada ■ .
Banque Provinciale du Canad:
Union Bank of Canada
Canadian Bank of Commerce
Royal Bank of Canada
Dominion Bank
Bank of Hamilton
Standard Bank of Canada., .
Banque d'Hochelaga
Imperial Bank of Canada ....
Home Bank of Canada
Sterling Bank of Canada
Weyburn Security Bank
S
28.075,000
15,000,000
10,000,000
5,000.000
5,000,000
15,000,000
5.000,000
15,000.000
25,000,000
25,000.000
10,000.000
5,000,000
5,000,000
lO.OOO.OOO
10.000.000
5.000.000
3.000,000
1 ,000,000
$
22.000.000
9,700,000
5.000,000
4,000.000
2,000.000
10,109,700
3,000.000
8 OOO.OOO
15,000.000
20.400,000
6,000.000
s.ono.oiio
3,924.800
4.000,000
7.000.000
2.000,000
l,26B.600
655,700
22 000,000
9.700,000
5,000,000
4,000.000
2,000.000
10,075.442
2,987,603
8,000,000
15,000.000
20,245 940
6.000.000
4.998,220
3,861.631
4,000.000
7,000.000
1.959.391
1 .229,920
524.560
s
22.000,000
12
18,000,000
16
6,000,000
12
5.000,000
12
■J.300.000
12
8.400.000
12
1 .300,000
9
6,000,000
10
15.000,000
12
20,189.975
12
7,000.000
12
4,849,110
12
4,844,722
14
4,000.000
10
7,500.000
12
500,000
7
450,000
8
225,000
7
33,558,807
35,933,842
19,385,111
6,844,523
6,033,138
5,792.400
14,089.622
2,965.257
9,993,369
26.818,064
36,107.082
8.383,101
5,493,376
6.181.255
7,248.889
12749.523
1.791 370
1,283,703
321.292
18,717,106
1,058,819
425.630
6,302,302
6,863.587
2,603,540
2,220 788
656.019
35,410,949
12,932,890
393.200
6,399.847
4,406.357
214.967
632,664
2,621,000
2,870,724
330,900
207,417,917 1 105,121.289
1,848,187
559 672
1,329,777
131,795
402 389
3,011,797
234,263
3,396.014
4,260.522
2.186,580
1,120,887
1,276,024
552,149
7.S,795
1,705.082
1,663,371
400.081
8.398
Deposits by
the public,
payable
on demand
in Canada
Deposits b)
the public
payable
afternotict
«
112,241,292
31,964,536
24,175,839
15,826,535
7,566,607
46,039,458
4.916,874
30 859,355
97,889.917
81,519.493
25.8,55,518
16,290,445
16.2<8.0I8
12.268,145
27,724.494
4.940,887
3,705.630
955,431
«
212,442,921
112 825,124
47,844.314
47,963.636
40.026,921
91,0,56.549
29.144,916
70,429,226
180,6.';8,56fl
189,381,386
68.514.536
44,559,252
48,118.071
44,164,772
65.977,894
12,500,256
12,014,995
1.232,153
7,985,277
36,935,696
140.021,007
2.16:t.656
24.162,783 561,578,474 1,318,855.482 305,778.387
LIABILITIES— Continued
Loans 1 r., *
from other Deposits 1 . "V* '° ,
banks in made by "'^''''t''"''
Canada, and balan- 1 banking
secured, \ ces due to """f "Tht
including- otherbanks^"'^ 1" *'^'=
bills re- , in Canada 1 ""'^f^
discounted | Kmgdom
Due to
banks and
banking
correspond-
ents else-
where than
in Canada
or the U.K.
Bills
payable
Accept-
ances
under
letters of
credit
Liabilities
not
included
under
foregoing
heads
Balances
due to the
Imperial
Govern-
ment
Total
Liabilities
Aggregate
amount of
loans to
directors.
and firms
of which
they are
partners
Average
amount of
current
gold and
subsidiary
coin held
during
the month
Average
amount of
Dc minion
Notes held
during the
the month
Greatest
amount of
notes in
circulation
at anytime
during the
month
•
9
1.635,111
1,382,486
199,762
898,624
358
4.956,463
5,329
462,501
3:18,280
8,196
648,552
47.270
1,628,781
s
142.667
140,155
S
1.330,429
2,026,702
1,235,160
345.698
57.168
544,746
48,ol5
1,621,287
5,292.460
13,562,343
1,790.135
423,240
«
1,842,045
554,888
8
4,493,896
315,837
153,758
212,034
7,805
1,000,619
8
1,307,572
5,934
151,019
503,423
9
9
467,687,972
203,315,335
82,359,784
78.267,152
68,179.878
166,861,752
39,675.088
129.941,157
400,811.939
502,447.987
110,625.580
75,186,986
78,950,125
64,620.520
110,292.232
24,376,219
20,506,767
2.909,974
8
926,386
1,074.745
389,818
287,817
362,083
815,437
$ 8 8
28,513,902 ■ 43,743,721 36 767,297
12,158,393 ' 15,790,717 19,534,629
1,022,193 8.135,429 7,209,400
598,511 3,248,361 6,120,738
7
S
4
5
49.963
22,791
68.476
450',66b'
46,577
6
9,964
139,043
7
145,934 205,909
1.064 304 13,769,320
8
1,564,595
1,836,343
1,569,143
53.553
240.726
2,645,813
6.,596,405
112,097
2,685.199
8210,433
17.939.520
1,038.485
456,802
1,629,619
1,122,799
632,273
636,625
776,247
425,495
284,100
160,164
574,015
313.036
31.417
8
454,896
623,936
551,856
10
11
14,314,0.59
2,089,000
902,317
1.750,423
482.986
1.738,509
190,300
124.987
19,310
21,380,529
37,1,54,741
12
3,346,944 1 5.693.351
7.181.768 i 6,151.494
1!)
U
6,075 556,006
49,909 ! 320,534
202,862 644,361
IS
1.024,928
9.108
217.904
107,200
IR
I
9.358
32.779
11
4,370
18
29.019
13,523,653
6.229,643
30,771,020
12,247.825
37,251.816
4.078.092
2,627,016,447
10,445.676
90.743.858
178.557.560 211,640,298
Deposits Deposits
on demand. after notice.
1920— February .$620,069,555 $1,187,027,307
March 657,412,028 1,197,719,570
April 652,918,760 1,209,57.3,990
May 645,957,229 1,229,073,515
June 659,622,583 1,243,700,977
July 333,415,025 1,253,170,443
August 640,331,707 1,261,647,7.32
September 677,286,905 1,270,194,097
October 687,651,781 1,271,275,751
November 686,754,094 1,292,009,008
December 657,496,742 1,293,007,488
1921— January 584,025,710 1,313,093,870
February 561,578,474 1,318,855,482
The following table shows deposits for the past six
years: —
Feb. On demand.
1915 $331,415,179
1916 .389,825,667
After notice. Total.
$ 671,088,613 $1,002,503,792
827,242,609 1,118,068,276
Feb. On demand. After notice. Total.
1917 $430,331,801 $ 880,456,637 $1,310,788,4.38
1918 569,266,642 908,822,988 1,478,089,630
1919 566,775,434 1,018,184,512 1,584,959,946
1920 620,069,555 1,187,027,307 1,807,096,862
1921 561,578,474 1,318,855,482 1,880,4.33,956
It is apparent that total deposits in Canadr.. have in-
creased largely over a year ago. On the whole, however, the
banks have about the same amount of funds at their dis-
posal, taking into considerEtion the fact that the credit bal-
ance of the Dominion government has been reduced from
.$217,059,8.32 to $105,121,289, and deposits abroad have in-
creased from $277,478,631 to $305,778,387. Balances due pro-
vincial governments also show an increase of about $5,000,000,
as compared with February, 1920.
Cash holdings were reduced last month, as will be seen
from the figures given below. In addition, bank balances
were much lower, so that the ratio of quick assets to liabili-
ties to the public was reduced from 23,58 per cent, in Janu-
ary, to 22.92 per cent. The declines above mentioned, how-
ever, were offset by an increase in security holdings, result-
April 1, 1921
THE MONETARY TIMES
Chartered Banks' Statement for February, 1921
ASSETS
NAMB OP BANK
Current Gold and Sub-
sidiary Coin
Dominion Notes
Bank of Montreal
Bank of Nova Scotia
Bank of Toronto
The Molsons Bank
Banque Nat'onale
Merchants Bank of Canada..
Banque Provinciale du Canada
Union Bank of Canada
Oanadtan Bank of Commerce
Koyal Bank of Canada
Dominion Bank
Bank of Hamilton
Standard Bank of Canada. . .
Banque d'Hochelaga
Imperial Bank of Canada ...
Home Bank of Canada
Sterling Bank of Canada
Weyburn Security Bank
23,978.844
8.873.323
1.027.5071
597,3461
438.202
4.272.826
159 843
1,050.612
9.142.019
6.I13.7S7
2 100.896
924,581,
1.762.581
509.434
1,747,084
195,3551
133,822
19,514
« • t
1,100,979 25,079,823
3,306,6;ll 12,179.955
1.027.507
597,346
795; 438.998
2,33S' 4,27,5.162
159,843
469.31 I, I 519.923
5.3.56.818| 14.498.837
8,362, 780l 14.476,548
943 2.101.840
I 924,581
1.762.581
509.434
1.747,084
63,047,556 18,600,592 81 ,648.1S3 184.992,794
* t
4,786 ' 46,591.408
5.256 13.998,478
8,286,780
I 4.066,000
4.132,371
e.06:f.619
340,295
12,403,084
4,530 20,31 1. ,570
2.334 I 23.234.096
147 I 10.088.758
8.198.MI
7.171.717
3,728.273
' 11.231,382
. . 1.927.066
' 1,129.185
.. . ' 107.655
17.053 185,009,848 6,300,243 88.402,533 59,465.988 118033,770
7,141,647 13,508,037 60,668,343
ASSETS— Continued
Oomin'n
Govern-
ment
and
'incial j.-ffl.5l
I Railwa
I and
other
'U'Z c
Call and
short
loans ii
Canadi
on st'cks
debent-
ures and
bonds
(not ex-
ceeding
30 days)
Call and
short
loans
else-
where
than in
Canada
(not ex-
ceeding
30 days)
Other
current
loans and
discounts
Other
current
loans
Pro-
vincial
Govern-
ments
Loans to
1 cities.
< towns.
Bank
Liabili-
Real
Mort-
premises
ties of
estate
gages
Over-
other
on real
than
under
due
than
estate
cost, less
of
pre-
by the
(if any)
credit
mises
written
off
as per
contra
not
ncluded
under
the fore-
going
heads
14,782,565
14,407,143
6.768,372
5.219,726
5,145.675
8.978.217
2,688.767,
6.194.137
13..54I.449
1 3.05 1. .564
6.198.901
Ii. 452.798
4 847.334
2.218.367
6.032,70:?
1.704.10)
9.234.666
268,088
•
33,875,
21.8.54
6.918
6.241
7.8.5;f,
13.775
71197
12.475
19.093
20,009
9,439
6,018
6,.567
5.401
9.612
2.876
lf>4i 4.515.684
312; 3,419.084
783' 6;t8.7l7
161' 699.715
5-19 S99.173
871 3, 747. 262
9191 2.439 913
481 3,.5»!,W10
348, 6,011. 8S6
180 14.7.>9,l,i8
828, l,7.SO,6;<8
117 416.134
585' 840.960
437 124.914
344 413.047
849 1,600,472
.356, 384.114
t
1.862.836
6.339.914
8.179.056
7.149.209
4,841.643
8,455.336
8.054.6361
4.878.192!
•.'3.3.58,153
13.709.223
7.!33,39:f
6.686.445
3.113.%3;
4.467.744
3.347.068
981 ,846
121.840
t
10 1. 654 .895
17.219.711
1.000.000
3.643.148
23.328.087!
35.242.116
3.077.190!
123.734576 190634618146.242.831 112680497 190.413.527 1.266,235,381 163044476
•
198.017,
87.814.
48.,W3,
48,5.56,
37,613,
106,033.661' 1. 436.299
13.164
65.088
211.444
162.161
62.666,
46.965,
51.739,
41.267.
61.212.
15.330.
6.581.
2,025.
i.364 4. -232.744
1.. 592 24.211.666
1 .065 102.270426
1.. 544.456
* I «
2,858,542; 17,282,783
I 4,050.110
I 1.131.846
2.283.622
1.054.313
2.2:12.458
1.466.609
849.711. 4.66S.747
7,939 891 1 II. 1.56.795
377,669] .5.790,712
13.94'
643,155
2,807,65'
1,293,995 1
2.916,919,
7,465,139
287 338
127,717
92,173
$
t
t 1
547.430
27,405
S4,2.)8!
415.6;<E
12^,841
174,693,
322.095
403.2.13
96.892
31.926
29.2711
358.745
383.503
1.056,739
604.612
690.391
206.427
7..50O
14.2.58
236.482
134.660
164,798
654.294
517.982
184 :19S
427.576
923.274
41 944
■.■69.5.10
5.378
18.6.50
20e..563
691.077
190.581
■293..5.13
59.650i
C33.788
245.962
262.7.501
658,3.58
515.4:2
417,565;
148,451
63.469
98.572
8.-574
2.7S0i
111,707
26,412
18,179
2,808.816
6,628,689
4,339,681
S.SOO.OOI
6,256.991
3.566.371
3.033..541
1.797.948
4.029.:f.55
400.354
1,490,.538
7.264.461
9,6«),H2
5.737,684
3,104,765
1,603.268
2.909.106
5,285.798
1.034,765
508,408
203.515
1.493.896
315.837
153.758
212.034
7.805
1.000.619
! 685,199
i,210,433
1,939,520
1.038.485
4.56.802,
539.990
85,668
107,200
4,370
74,791
245,063
•273,517
281.8.57
44.433
.54.868
146,107
34 1 ,4,58
4.55,871
106.439
%011
688.097
203.767
3'25.05S
63.334
518,890,135
2.13,042,483
. 95,176,890
88.399.844
73.416.392
185.597,969
44.300.815
143.864.605
j:«.I41.707
544.539.851
124.972.251
85,348.503
88.177.'284
73,458.303
126.663.780
27.014.830
22.430.808
3,610,882
Of the deposit in Central Gold Reserves til, 502.533 is in gold coin; the balance is in Dominion Notes.
J. C. SAUNDERS. Deputy Minister of Finance.
ing in an increase in the r&tio of liquid assets to liabilities
to the public, the figuie-s for January and February being
48.79 and 48.8S ptr cent., respectively.
Gold and sub-coin in Canada 4- $ 140,376
Gold and sub-coin elsewhere — 3,610,4-33
Total change — $3,469,857
Dominion notes in Canada — $1,578,267
Dominion notes elsewhere — 1,423
Total change — $1,.579,690
In regc.'rd to the holdings of securities, it is interesting
to note that the account "Dominion government and provin-
cial government securities," increased by about $11,500,000
over January. .\s short-term loans to the Dominion govern-
ment are included under this heading, and as there were no
new provincial bond sales in February, it is reasonable to
suppose that the &bove increase was the result of advances
to the government by the banks against treasury bills, which
is the custom usually followed.
Capital and Reserves
Substantial additions to the paid-up capital and reserve
are again shown, the ch&nges being as follows: —
CapitE-l Capital
subscribed.
Royal
Merchants $ 200
Hamilton 1,200
Provinciale
Standard 70,100
Sterling
Total f-dditions . . $71,500 $122,548 $215,227
paid up.
Reserve.
$ 31,160
$ 15,580
20,394
9,830
154,925
1,188
,59,630
44,722
346
THE MONETARY TIMES
Volume 66.
THE WEEK IN PARLIAMENT
Report of Mercantile Marine Was Feature of Week — Fleet
Paid Operating Expenses and Earned 2.35
F'er Cent, of Cost
(Special to 'I'hc Moih-Uiry Tiiius.)
Ottawa, March 31, 1921.
Tuesday, March 29
In House of Commons: — (a) First readings of following
bills: one to incorporate Standard Insurance Co. and one
respecting Western Dominion Railway Co.; (b) General
statement by Hon. C. C. Ballantyne, Minister of Marine and
Fisheries, on Canadian Government Merchant Marine; (c)
Amendment by Hon. W. L. Mackenzie King, Liberal Opposi-
tion leader, to motion to go into supply, calling on govern-
ment to call all bye-elections quickly so that representatives
of vacant seats may sit in present parliament, debated and
defeated by government majority of 31; (d) Interior depart-
ment estimates; and (e) Third readings of following bills,
one respecting Montreal, Ottawa and Georgian Bay Canal
Co., one respecting Oshawa Railway Co., one respecting
Thousand Islands Railway Co., one respecting Kettle Valley
Railway Co., one respecting Manitoba and North-Western
Railway Co. of Canada, one respecting Quebec Central Rail-
way Co., one respecting the Essex Terminal Railway Co..
one respecting the Ottawa, Northern and Western Railway
Co., one to incorporate the Mayo Valley Railway, Ltd., one
respecting the Dominion Life Assurance Co., one to in-
corporate Fidelity Insurance Co. of Canada.
In Senate:— (a) Post Office Act Amendment bill abolish-
ing registration in parcel post service and substituting a
system of insurance, making $100 the maximum, and making
it necessary for letters with insufficient postage to be de-
livered immediately, collecting penalty postage, without
intervention of dead letter office; (b) Second readings of fol-
lowing bills: One respecting Quebec, Montreal and Southern
Railway Co., and one amending the Exchequer Court Act to
make unquestioned the right of the Commissioner of Patents
to appear before the Exchequer Court when any person ap-
peals from his decision or ruling and to appeal from that
Court to the Supreme Court.
Wednesday. March 30
In House of Commons: — Debate on DesLauriers resolu-
tion to suspend immigration until normal condition of atfairs
is established, and resolution withdrawing, after statement
from Hon. J. A. Calder, Minister of Immigration, that he
would give full information as to policy when his estimates
are discussed.
In Senate:— Debate on Post Office Act Amendment bill
in committee.
After the Easter adjournment parliament re-assembled
on Tuesday, March 29. As a rule the House takes a day or
two to settle dowTi into its stride, but both parties locked
horns at once over the general statement of the minister of
marine and fisheries, Hon. C. C. Ballantyne. as to the opera-
tions of the Canadian Government Merchant Marine in 1920,
and the amendment of the Hon. W. L. Mackenzie King,
Liberal Opposition leader, to the motion to go into supply,
asking that all bye-elections should be held at once. Most
of the progressive members voted with the government, the
second tjme that its forces have divided on an important
division.
The minister's statement, which has been eagerly await-
ed, covered the operations for 1920 of the 47 vessels now in
operation, showing the total net earnings to be $781,460,
after a deduction of $667,66.5 for depreciation, making avail-
able a payment to the government of about 2.35 per cent, on
the money expended for building these ships, placed at $49,-
243,604. Insurance premiums of one million dollars on eighty
per cent, of value of vessels were included in the opera-ting
expenses. As the government loans were placed at five and
five and a half per cent., this means a deficit so far as fixed
charges are concerned. The minister gave detailed figures
to show how far the freight rates dropped in 1920, and
the small demand for vessels for foreign trade, causing many
to be laid up in many countries. The minister, however,
stressed the advantage to Canada of having Canadian vessels
appearing in all the important ports of the world, but he
expressed disappointment that Canadian manufacturers and
exporters are not reaching out more aggressively to secure
the trade thus placed within their reach. There will be
sixty-three vessels in the government fleet when the sixteen
now being constructed are completed. The total tonnage
will be 374,254 dead weight.
Interest on Foreign Credits
A Roumanian interest payment of $1,475,234 falls due
on April 1, and there is no indication that the payment will
be met. The interest is due on a credit of $22,000,000 ad-
vanced by the Dominion government to Roumania for the
purchase of goods in Canada. The actual credit made
available was $25,000,000, but the whole of the credit was
not utilized. So far, Roumania has made no interest pay-
ments on the credit advanced by Canada. .A.n interest pay-
ment of $909,526, which fell due on October 1, was not met,
Roumania asking for an extension of time till April 1. An
interest payment of $153,916 due on the Greek loan on De-
cember 31, it is stated, also remains unpaid. In this case,
the recent change of government in Greece has apparently
caused delay. The previous interest payments were met
in full and negotiations were opened some weeks ago with
the London representative of the recently established Greek
government to secure payment of the interest due on De-
cember 31.
WESTERN FARMERS WAIT ON WEATHER
Opposing Views on City Income Tax — New Motor
Financing Company
(Staff Correspondence.)
Winnipeg, March 31, 1921.
RATHER backward weather for this time of the year
was experienced in Winnipeg and throughout the west
this week and over Easter, but it is expected that a fairly
early spring will open out very soon. The farming outlook
in all parts of the west is in excellent shape, as a great deal
of fall plowing in preparation for this spring's crop was
done before the freeze-up came. Farmers are now all in
readiness to get right on the land, and from all reports, will
have plenty of help.
Considerable discussion has taken place in Winnipeg
this week regarding the proposed city income tax, and
many prominent business men, representing large interests,
have appeared before the legislative committee, making
strong opposition to the city imposing an income tax.
Neighboring municipalities adjacent to Winnipeg are also
strongly opposed to the proposed measure, since the city
will, if it gets the opportunity, tax the non-resident who
earns a living in the city. The city of St. Boniface and other
municipalities are strong in their objection to the measure.
In spite of the apparent unanimous opposition to the city
income tax, it appears quite possible that the present legis-
lature .will provide for the imposition of an income tax.
Those opposing the measure were not prepared to express
views regarding the manner in which additional money
would be provided.
A new financial company has just been formed in Winni-
peg for the handling of motor cars' notes. The officers of
the company include. Captain William Robertson, president;
James Auld, barrister, vice-president; G. R. Crow, G. V.
Hastings, A\ex. H. Brown, John Stovel, and Chas. H. Mc-
Fadven, directors.
April 1, 1921
THE MONETARY TIMES
;|it0tt£tar5 Dimes
Trade Review and Insurance Chronicle
of Canada
Address: Corner Church and Court Streets, Toronto, Ontario, Canada.
Telephone: Main 7404. Branch Exchange connecting all departments.
Cable Address: "Montimea. Toronto."
Winnipeg Office: 1206 McArthur Building. Telephone Main 3409.
G. W'. Goodall, Western. Manager.
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The Monetary Times does not necessarily endorse the statements and
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PRINCIPAL CONTENTS
EdITORI.-^L: PAGE
The Proposed Turn-Over Tax 9
The British Cattle Embargo 9
Who Can Most Safely Be Bonded? 10
Liability of Stock Exchang:e Members 10
Special Articles:
New British Empire Steel Proposal 14
Municipal Legislation Featured Quebec Session . . 18
The Cost of Fire Prevention 20
British Columbia Estimates Are Higher 22
Alberta's Municipal Hospital System 24
Joint Bank Account and Wills Act 26
Monthly Departments:
February Bank Statement 5
Montreal and Quebec Savings Institutions 24
Weekly Departments:
Insurance Licenses and Agency Notes 26
News of Industrial Development in Canada 28
New Incorporations 30
News of Municipal Finance ) :32
Government and Municipal Bond Market 34
Corporation Securities Market 38
The Stock Markets 40
Corporation Finance 42
Recent Fires 44
THE PROPOSED TURNOVER TAX
RKPRESENTATIVKS of the Canadian .Manufacturers' As-
sociation, the Wholesale Grocers' .\ssoci;',tion, the Re-
tail Merchants' .Association and the Canadian Credit Men's
.Vssociation arc meeting in Toronto this week to discuss
federal taxation. The meeting is held at the instance of Sir
Henry Drayton, minister of finance, who takes the view tha-t
ir manufacturers want the business profits tax to cease, they
must ofi"er an alternative form of revenue. The manufac-
turers wish to have both the business profits tax and the
income tax on corporations done awr-^y with, although it is
not probable that the income tax will be reduced in any way.
Theoretically, both these taxes are paid by the consumer, as
capital and business enterprise coninumd their market i)rice
regai'dless of taxation, and the latter must accordingly be
passed on in the form of an enhanced price. -As a matter of
fact, however, both ta.xes are of such recent introduction in
this country, that business has not yet become adjusted to
them — i.e., the ta^xes have not entirely been passed on to the
consumer. The business profits tax, advancing rapidly ;.bove
a certain return upon capital, has been especially onerous; it
was originally a three-year tax, and has been renewed from
year to year; it is not expected tha-t it will be renewed this
year, however.
Both these taxes, and especially the business profits tax,
fell heavily upon the manufacturers. The wholesalers and
jobbers are also making a contribution in the form of a
sales ta-x. The retailers escaped, apart from the work of
collecting a luxury tax from their customers last year. The
manufacturers now propose that the sale.s tax be extended
to a turnover tax, payable by all classes of business. At the
meeting this week, W. H. Lamont, quoting figures prepared
by the Cantdian Manufacturers' .Association, stated that the
internal turnover, after making allowances for export trade,
fisheries and other exceptions, would, at its source, be about
$4,000,000,000, which, allowing for a turnover three times,
would reach a total of S12,000,000.000. .\ profit of 1.5 per
cent, increased this figure to $18,000,000,000, upon which a
tax of 1 per cent, would produce $180,000,000. The business
profits, sales a-nd income taxes la.st year produced $112,000,000
altogether.
.A turnover tax would unquestionably be fairly easy of
collection, and, at the same time, productive of revenue.
Manufacturer, wholesaler and retailer would all pay. The
tax would be added to the price at every stage. It would,
therefore, be an indirect Uix paid by the consumer. The
present taxes, on the other hand, are in part paid by manu-
facturers and other concerns. Would the proposed tumover
tax be an improvement, or is it merely an attempt on the
part of the manufacturer, who knows he cannot escape alto-
gether, to shift the immediate payment in part to other
classes of business, and the ultimate incidence of the tax to
the consumers as a whole?
THE BRITISH CATTLE EMBARGO
"C'NGLISH wits of the 17th century ridiculed an expedition
-'--' Sir Walter Raleigh by relating that "There was a
fleet that went to Spain, when it got thei-e it came back
again." Hon. Manning W. Doherty, minister of agriculture
in Ontario, has just made an expedition to Great Britain to
protest against the British embargo on the importation of
cattle from abroad. Now he is back again, but the em-
bargo remains. He expresses himself as hopeful that it will
be removed — after the Imperial Conference in June.
The minister's visits followed protests made by the
Dominion and provincial governments, such protests being
not so much against the embargo itself as against a sup-
posed implication that Canadian cattle are diseased. He
was treated with courtesy, and addressed several meetings,
including a large one in the London Guildhall on March 9,
at which a resolution was passed urging the removal of the
embargo. The import<»nce of the question in the old country
is seen from the fact that it was the main issue in a by-
election in which Sir Arthur Griffith-Boscawen, president of
10
THE MONETARY TIMES
Volume 66.
the board of agriculture, was defeated by a Labor candidate.
Nevertheless there is ample evidence that such an attempt
to interfere in Biitish politics is unwarranted. The London
Monihu/ I'ont has been particularly critical of the visit. On
the other hand the campaign of the Dttilu Express in favor
of the removal of the embargo is alleged to be due to the
fact that its proprietor, Lord Beaverbrook, is a former
Canadian, although he is now a British peer and an ex-mem-
ber of the British House of Commons. The protests are not
due to the view that it is the Dominion government alone
which should speak. The British North America Act, as is
well known, did not create a Dominion of protnnces, but a
Dominion cnid provinces, all deriving their authority from
the Imperial government; agriculture is, moreover, within
the jurisdiction of both Dominion and provincial govern-
ments. They show, however, that Great Britain resents
colonial influence in purely internal affairs, just as Canada
long ago insisted on the right to govern her tariffs and othev
internal affairs without intrusion on the part of Great
Britain.
WHO CAN MOST SAFELY BE BONDED?
SOME time ago there was a popular story to the effect that
a fat man wa.s good-natured only because he couldn't
right and couldn't run. Perhaps it is for the same reason
that fat men are conspicuously honest, but on the other hand,
it may be because avoirdupois and cunning do not go together.
"Let me have men about me that are fU, sleek-headed men,
and such as sleep o'nights. Yond Cassius has a lean and
hungry look; he thinks too much; such men are dangerous."
So Caesar expressed it, and modern surety companies, having
criminal records at their disposrJ, are of the same opinion.
The experience of surety and guarantee companies has
produced more than a preference for the weighty, however.
Many interesting conclusions are drawn, although being gen-
eralities, there are always exceptions. Married men are
better risks tha.n single men, on the whole. The "trusted"
employee, meaning the faithful and conscientious, is not al-
ways the most trustworthy. The "crank" is usually a good
risk, because his abnormal tendency is apparent, and it is
probably for the same reason that the profane ma^n, who
voices his protest against society by word of mouth, seldom
robs it of material goods. One of the most useful inferences
from the companies' experiences, however, is that based on
race. The Anglo-Saxon is found to be the most honest of
all the races represented in positions of trust on this con-
tinent. When the Anglo-Saxon does err, however, his defal-
cations r.re large; having once decided upon a dishonest
course, he does not lack the courage to do the job well. Of
continental Europeans, who are practically the only others
covered by the experience of the companies, the Dutch, Scan-
dinavians, Danes and Germans, which are races closely akin
to the Anglo-Saxon, come second. The French, Spanish and
Italians are found to be less trustworthy, being more inclined
to petty larceny, but seldom stealing large sums.
These and other points regarding the experience of surety
companies, were set forth by F. N. Withey, a representative
of the National Surety Co., of New York, at meetings of the
Lions' Clubs of Toronto, and Oshawa on Wednesday £.nd
Thursday, respectively, of this week. Mr. Withey is on a lec-
ture tour, and will speak at other gatherings in Ontario,
Quebec and the west.
LIABILITY OF STOCK EXCHANGE MEMBERS
WHILE the limited liability form of business organiza-
tion has increased in popularity in almost every other
field, it has not been looked upon with favor in stock ex-
change circles because of the volume of transactions put
through without specific security. Every week sees the in-
corporation in Canada of some businesses previously con-
ducted by individual proprietors or by partnership. The
larger firms engaged in underwriting bonds and stocks are
incorporated. In this field transactions are, generally speak-
ing, on a cash basis, securities being bought outright for
cash, hypothecated to the banks with an ample margin of
security to the latter, and sold to the investor for pay-
■ ment in fiill in cash. A large proportion of the business of
a stock exchange firm, on the other hand, is a marginal
business. The customer accompanies his order with a cash
margin, but he does not see his securities because they are
kept by the broker as security for the balance. The latter
obtains a loan on them from the banks. The active stocks
are usually the most favored by marginal speculators, how-
ever, and the banks therefore favor loaning to brokers whose
liability is not limited by their firm's paid-up capital. Again,
stock exchange membership is on a personal basis, the mem-
bers being individuals representing firms, and unsecured
transactions between members are large, so that the stock
exchanges as a whole have favored the partnership with
unlimited liability method of doing business.
The Toronto Stock Exchange has, however, adopted a
new policy. In February a by-law was passed allowing
members to represent firms of limited liability. A number
of the members' firms, previously partnerships, have since
been incorporated. This has the advantage of avoiding the
complications so often met where the bond and underwriting
branch of a business was conducted by a company, while the
stock exchange branch was conducted by a partnership under
a similar name. Nevertheless the change, insofar as it has
been put into effect by incorporation, affects not only the
" fellow members of an exchange, but also the banks and
customers dealing with a firm so incorporated. In such cases
it will be well for the banks to bear in mind that their
security against the disappearance of margins on pledged
stocks, through a drop in the market, is limited to the capital
of the brokerage firm. Customers also, who have no way
of knowing whether a broker has actually purchased securi-
ties with funds paid him, must bear in mind that only a
limited capital, not the entire personal property of the
members of the firm, is available in the event of its in-
solvency.
Recent trade returns show a falling off in Canadian ex-
ports. Even at that no business is better than business with
Roumanians who do not pay.
The minister of marine would have been better advised
if he had commenced his mercantile marine as the expensive
trade-promoting agency which it is now proving to be,
rather than as a profitable enterprise.
*****
The National Railways have not been, and apparently
cannot be, removed from politics. The appeal of the presi-
dent, D. B. Hanna, at the commencement of his management,
to the public to support their own road, and the recent order
that employees should not engage in politics, are proof that
the management has not been that of a private railway.
The attention given to the subject in parliament shows that
the National Railways are still a department of government.
MUCH ADO ABOUT NOTHING
A prominent foi-eign official was addressing a gathering
of the leading financial lights of New Y'ork, following the
floating of a new bond issue for his government. In the
corner at press table reporters were earnestly endeavoring
to "get" what he said, although he spoke English with an
85 per cent foreign accent. To make matters worse he read
his speech instead of saying it, and as he went further he
read with ever-increasing speed and accent. Finally all the
reporters gave up and sat looking out of the window, except
one whose knowledge of French and shorthand kept him
busy to the end. After half an hour the foreign official
finished amid applause and the one active reporter was
eagerly questioned by the others. "Well what did he say?"
they asked. The reporter carefully scanned his five pages
of shorthand notes, then looked up seriously. "As far as I
can see," he said, "all he said was 'Thanks for the loan.' "
April 1, 1921
THE MONETARY TIMES
Bank of Hamilton
HEAD OFFICE - HAMILTON
Established 1872
Capital Authorized
Capital Paid Up (January 31st, 1921)
Reserve Fund (January 31st, 1921)
$5,000,000.00
4,988,390.00
4,694,195.00
Director*
SIR JOHN HENDRIE, K.C.M.G.. C.V.O.. President
CYRUS A. BIRGE, Vice-President
HOWARD S. AMBROSE C. C. DALTON
ROBT. HOBSON W. E. PHIN
I. PITBLADO, K.C. W. P. RILEY
J. TURNBULL W. A. WOOD
ALAN V. YOrNG
Branches
At Montreal, and throughout the Provinces of
Ontario, Manitoba, Saskatchewan, Alberta and
British Columbia.
Savings Department at all Offices.
Deposits of $1 and upwards received.
Advances made for Manufacturing and Farming
purposes.
Collections effected in all parts of Canada promptly
and cheaply.
Corretpondence tolicited
J. P. BKLI- - - General Manager
Judicious Financing
Whether you are engaged in agricultural,
manufacturing, industrial or merchandis-
ing pursuits, your prosperity depends pri-
marily upon the judicious handling of
finances.
This Bank offers you a constructive, sta-
bilizing service, coupled with competent
advice, and is willing to foster enlarge-
ment on safe lines.
Make a banking connection conducive to sound
growth. Consult our local manager.
IMPERIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
File Your Income Tax
Returns
The income tax returns for 1920 of
all individuals resident in Canada
must be filed with the Dominion
Government on or before April
30, 1921. The Government this
year requires you to forward with
your return 25% of the tax due.
UNION BANK
OF c:anada
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Nevy^found-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET. E,C.2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
Paul H. HoRST has been appointed manager at Winni-
peg, Man., of the Canadian Surety Company, with supervi-
sion over the province of Manitoba, Saskatchewan and
Alberta. Mr. Horst is a lawyer by profession, and has had
considerable experience in the insurance field.
R. H. Hamlin, general manager of the Empire Sash
and Door Factory, Winnipeg, Manitoba, has been recently
elected director of the Western Life Assurance Company.
Mr. Hamlin has been closely connected with civic and the
business life of Winnipeg for a number of years.
RuFus Choate Macknight, who has been appointed
general manager of the Northern Life Assurance Company
of Canada, has introduced new methods into field organiza-
tion along thoroughly advanced and scientific lines, as a re-
sult of which the company has made noteworthy progress.
The system devised by Mr. Macknight provides for the
selection and development of the most .skilful and proficient
of representatives trained by the company in technical and
personal efficiency, th'e especial objective being to insure the
permanence of new business and to develop the highest and
most reputable type of salesmanship. The plan includes a
system providing commissions, increasing monthly income, an
interest in the business for every representative to safeguai'd
him against possible hardships in c&se of accident or disease,
and to protect his family in the event of death.
Alex. Inch, formerly deputy fire commissioner for
Manitoba, has been appointed manager for Alberta and
Saskatchewan for the Canadian Foamite Firefoam, Limited.
Mr. Inch intends to give considerable attention to fire pre-
vention work in these provinces. His headquarters will be
in Calgary.
Alexander Robertson, who has been with the Liverpool
and London and Globe at the head office, Montreal, for the
past twelve years, has resigned his position with that office
to fill an important post in the fire branch of the Motor Union
Insurance Co., at Canadian chief office, Toronto.
A. E. DVMENT
GENERAL ELECTRIC CHANGES
Hon. Frederic Nicholls has retired from the presidency
of the Canadian General Electric Co., and at the same time
relinquishes his position r>s general manager. He has con-
sented to become chairman of the board, however, and will
therefore remain in close touch with the work of the execu-
tive. Senator Nicholls has been the prime factor in the up-
building of the Canadian
General Electric, and over
a period of thirty-three
years he has seen the
company's asset^ grow
from $10,000 to $31,000,-
000. He was born in
England and ever since
coming to this country at
the age of eighteen years,
he has been intimately
connected with the elec-
trical industry. The re-
tirement of Senator
Nicholls necessitated
many other changes in
the executive of the com-
pany. A. E. Dyment, who
has been chairman of the
board of directors, was
promoted to the presi-
dency; Stephen Haas, one of the directors, becomes vice-
president; J. J. Ashworth, up to the moment assistant gen-
eral manager, assumes the position of general manager; and
J. A. Bremner, controller, is made assistant general manager.
Mr. Dyment, the new president, has had a wide experience in
fina.ncial affairs, first as a lumberman, and afterwards as a
stockbroker. He was a member of the Toronto Stock
Exchange.
OBITUARIES
Stephen George Wright, supervisor of Ontario agents
for the Motor LTnion Assurance Company, died last week at
his home, 1418 Ossington Avenue, Toronto. Mr. Wright was
born in England 41 years ago, but had lived in Toronto
since he was three years of age. He was well known in in-
surance circles.
Edward William Waud, superintendent of the branches
of the Molsons Bank, died last week at his late residence,
350 Kensington Avenue, Montreal, Que., at the age of -57
years. The late Mr. Waud was born in Yorkshire, England.
He came to Canada with his parents when only 9 years of
age. He was educated at Fawcett's School, Montreal. At
the age of 17 he entered the Molsons Bank, with which he
remained throughout the remainder of his life, holding in
turn the positions of manager of the bank's branch at Owen
Sound, manager of the Woodstock, Ont., branch, inspector
of branches at Montreal, and later superintendent of that
department.
William T. Ramsay, who was at one time superin-
tendent of the Canada Life Assurance Company, but who
retired in 1908, died at Gibraltar on March 27, at the age of
63 years, where he had gone for the benefit of his health.
He had lived in Hamilton when the Canada Life had its
head office there, but most of his life was spent in Toronto,
where he was well known. The name of Ramsay has been
linked with the Canada Life for more than a half a cen-
tury. In 1859 A. G. Ramsay came from Scotland to be man-
ager and secretary of the company, and he remained con-
stantly with it until in 1900. when, after 40 years of ser-
vice, he retired from the presidency, to which he had risen.
The late Wm. T. Ramsay was a son of the former president,
while A. Gordon Ramsay, who is at present assistant gen-
eral superintendent of the company, is a grandson.
April 1, 1921
THE MONETARY TIMES
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I The Sterling Bank |
I OF CANADA |
^iiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiii[iiiiiiiiiiiiiiuii]iiiiiiiiiiiiiiiiiiiniiiiiiiii!iiiij!iiiiiitiiiiiiiiiii[[iiiiiiiiiiiiiiiiiiiiiiiiiiiii
One Department which is proving of special value
to Sterling Bank clients at this time is that dealing
with Foreign Exchange. Here, as elsewhere.
" Personal Service '* makes for greater speed and
efficiency.
Head Office
KING AND BAY STREETS, TORONTO
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
The National Bank of Scotland
Limited
Incorporated by Royal Charter and Act of Parliament. Hstablisheo ]i<2.=-
Capital Subscribed ;<;5,000,000 825,000,000
Paid up 1,100,000 ,S,,SOO,000
Uncalled 3.900,000 19,500,000
Reserve Fund 1 .000,000 .5, 000, 0(H)
Head Office - EDINBURGH
WILLIAM CARNHOIE. General .M.inaKer. tiKOROE A. HL'NTKR. Sec.
LONDON OFFICE-37 NICHOLAS LANE, LOMUAKD ST., EC 4
T.C. RIDDELL, DUGALD S.MITH,
Manager Assistant iManaKcr
The agency of Colonial and Foreifin Banks is undertaken, and the Accep-
tances of Customers residint; in the Colonies domiciled in London, are retired
on terms which will be furnished on application.
Be sure your WILL is made, naming a Strong
TRUST COMPANY as your
EXECUTOR
Ask for Booklet: "The Corporate Executor,"
CAPITAL, ISSUED AND SUBSCRIBED . .Si, 171, 700. 00
PAID-UP CAPITAL AND RESERVE 1,172,000 00
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE: WINNIPEG, CAN.
THE STANDARD BANK OF CANADA
Quarterly Dividend Notice No. 122
A dividend at the rate of Three and One Half per rent.
(3'j) for the three months ending 30th April, 1921. has
been declared payable on the 2nd of May, 1921, to
Shareholders of record as at the 18th of April, 1921.
By Order of the Board
C. H. EASSON,
General Manager
Toronto, March 23rd, 1921.
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
The Security Trust Company, Limited
Head Office - - Calgary, Alberta
Liquidator, Truitee, Receiver, Stock and Bond Brokers,
Administrator, Execntor. General Financial Agents.
W. M. CONNACHER Pres. and ManaRing Director
Income Tax Returns
Our experience in the prepa-
ration of Income Tax Returns
will relieve you of worry in
the interpretation of the In-
come Tax Act as applicable
to your revenue. Our fee is
moderate for the services ren-
dered.
THEBANK0C5
TRVSrGOMB\NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
THE MONETARY TIMES
NEW lUMTlSH EMPIRE STEEL PROPOSAL
Nova Scotia Stoel, Dominion Steel and Halifax Shipyards
to be Included — Proposed Balance Sheet of MerRer
ON April 7 the shareholders of the Dominion Steel Cor-
poration and of the Nova Scotia Steel and Coal Co. will
vote on the proposal to exchange their shares for stock in
the British Empire Steel Corporation. Halifax Shipyai-ds is
the third corporation which it is planned to include. Origin-
ally intended to include these and about six other companies,
and to have total assets of $474,016,350, the revised plan is
for assets of $168,736,28.5. Accompanying the notices call-
ing special general meetings of the shareholders on April
7, are projected balance sheets of the British Empire Steel,
and statements by president R. M. Wolvin, of Dominion
Steel, and D. H. McDougall, of the Nova Scotia.
The modified form of the consolidation, which is to com-
prise only the Dominion Steel Corporation, the Scotia enter-
prise and" Halifax Shipyards, is then dealt with in the state-
ments, which proceed: "Your directors consider that the
advantages of an alliance between the two senior and prin-
cipal companies are so well known and appreciated that
it is unnecessary to present them formally in this circular.
The inclusion of the Halifax Shipyards, Ltd., another Nova
Scotia enterprise, would appear to be a logical outcome of
its situation on the eastern Atlantic seaboard and will pro-
vide an important outlet for the products of the Dominion
Corporation and the Scotia company. Halifax is admirably
situated as a relief port for vessels which become disabled
on the north Atlantic. During the last two years, the com-
pany's slipways at Dartmouth hauled out 895 vessels of all
classes, and repairs were executed on 294 ships at Halifax
Graving Docks. At present two 10,500-ton vessels are in
course of construction."
The Balance Sheet
The projected financial statement, as at December 31,
1919, follows: —
Assets
Properties, plant, etc $150,956,605
Less depreciation 20,122,938
$130,783,667
Deferred balances $ 79,208
Cash 1,574,220
Uncalled capital (since called) 300,000
Call loans 1,449,404
Government bonds 3,872,105
Notes and accounts receivable 11,792,169
Inventories 15,388,099
Investments 2,232,299
Deferred charges 1,119,358
Bond redemption 145,751
$168,736,285
Liabilities
1st preferred 7'; cumulative stock . . $ 19,950,000
2nd preferred 7'r cumulative stock . . 57,350,000
Common stock 24,450,000
$101,750,000
Less to be held by constituent companies 7,965,000
$ 93,785,000
Funded debt $ 31,102,475
Deferred payments 1,484,000
Bank loans " 3,670,270
Notes payable 367,497
Accounts payable 7,702,679
Uncompleted contracts 1,935,150
Deferred credits 1,075,600
Reserves 1,303,456
Combined surplus 26,310,154
$168,736,285
Capitalization
The proposed stock issues of the new corporation aggre-
gate in amount $101,750,000, of which $5,605,000 second
cumulative preferred and $2,360,000 com.mon or $7,965,000 in
all, will be held by one of the constituent companies, the
Dominion Iron and Steel Co., leaving $93,785,000 as the net
total issue to be made to ex'change for individual holdings
of the present securities. The initial share capital will be
divided as follows: —
7 per cent, cumulative prefeiTed Series B $ 19,950,000
7 per cent, cumulative second preferred 57,350,000
Common shares 24,450,000
$101,750,000
The 7 per cent, cumulative preference shares Series
"B" are to be offered in exchange for outstanding prefer-
ence shares of the companies which enter the consolidation.
Such exchange of preference shares will be at the option
of the holders. The cumulative preference shares Series
"B" rank with the cumulative preference shares Series "A"
as a first preference both as regards dividend and distri-
bution of assets on a winding-up. The cumulative second
preference shaies are to be exchanged for the outstanding
common shares of the companies entering the consolidation.
The bond and debenture issues of the various companies are
to remain undisturbed. The British Empire Steel Corpora-
tion, will be able from time to time to obtain additional
capital by the sale of 8 per cent, cumulative preference stock
Series "A," which it has authority to issue.
Working Capital
The position occupied by the three constituent companies
when the figures were compiled, it will be seen, was particul-
arly strong as respects working capital, current assets of
$34,375,999 exceeding liabilities of a similar character,
amounting to $13,675,597, by the substantial sum of $20,-
700,402. In the circular to the shareholders of the two
principal companies, the following statement is made : "As
the end of the fiscal year of the Dominion Steel Corporation,
Ltd., is not reached until 31 March, it is not practicable to
submit a balance sheet for the year 1920 but assurance can
be given that the earnings of the combined companies for
the year 1920 have been satisfactory. In addition to the
government and legal fees in connection with the incorpora-
tion of the British Empire Steel Corporation, Ltd., ample
provision is made in the financial statement to cover all
expenses, including cost of investigations, appraisals, audits
and reports incidental to the plan."
Another interesting feature of the circular is contained
in the details given as to the distribution of the new securi-
ties. These are as follows : The 7 per cent., preference shares
Series "B" to be exchanged as follows: —
For 6 per cent. Dominion Steel preferred $ 7,000,000
For 7 per cent. Dominion Iron preferred 5,000,000
For 7 per cent. Dominion Coal preferred 3,000,000
For 8 per cent. Scotia preferred 1,200,000
For 6 per cent. East. Car preferred . . 750,000
For 7 per cent. Halifax Shipyard pre-
ferred '. 3,000,000
Total $19,950,000
The 7 per cent, second preference shares to be exchanged
as follows: —
For Dominion Steel C. Common $40,850,000
For Nova Scotia S. common 13,500,000
For Halifax Shipyards, common 3,000,000
Total $57,350,000
The common shares to be exchanged as follows: —
For Dominion Steel Common $17,200,000
For Scotia Steel common 6,000,000
For Halifax Shipyards common 1,250,000
Total $24,450,000
April 1, 1921
THE MONETARY TIMES
IS
Bank of New Zealand
ESTABLISHED IN 1861
Bankers to the New Zealand Government
CAPITAL
Paid. Up Capital ($13,528,811) ana Reierre Fana
($12,166,250) $25,695,061
Uadivided Profit! 713.039
A(gre|ate Aiieti at 31tl March. 1920 257,500,944
Head Office:
WELLINGTON
NEW ZEALAND
H. BUCKLETON
General Manager
THE BANK OF NEW ZEALAND has Branches at
Auckland. Wellington. Christchurch. Uunedin. and 203 other
places in New Zealand ; also at Melbourne and Sydney
(Australia!, Suva and Levuka (Fiji). Apia (Samoa), and
London.
The Bank has facilities for transacting every description
of Bankini; Business. It invites the establishment of Wool
and other Produce Credits, either in sterling or dollars, wiih
any of its Australasian Branches.
LONDON OFFICE: 1 Qoeen Victoria Street, Mansion Hou>e, E.C. 4
CHIEF CANADIAN AGENTS :
Canadian Bank of Commerce Bank of Montreal
-HomeBanki^Canada-i
BOND DEPARTMENT
Every Branch Office of the Home Bank is in ready
communication with the Bond Department at the
Head Office Information regarding Government
bonds or the more stable securities ^villingly and
freely supplied upon request.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto g.n
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
head okficb. weyburn. saskatchewan
Branches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midale
GriflRu. Colgate. Panginaii, Radville, Assiniboia, Benson,
Verwood. Readlyn, Tribune. Expanse. Mossbank, Vantage.
Goodwater. Darmody. Sloughton, Osage. Creelman. Lew-
van. Kroude and Ardill.
A GENERAL BANKING BUSINESS TRANSACTED
H. O. POWELL, General Manager
TH€ M€RCHANT5 BANK
Head Oftice : Montreal. OF CANADA
Established 1864.
Capital Paid-up, $10,029,622 Reserve Fund and Undivided Profits, $9,475,585
Total Deposits (31st January, 1921) - $152,211,354
Total Assets (31st January, 1921) • $186,528,254
Board of Direclort :
SIR H. MONTAGU ALLAN Vice-President
Sir F. OrrOrr-Lewis, Bart.
Hon. C. C. Ballantyne
Farouhar Robertson
Geo. L. Cains
Alfred B. Evans
Thomas Ahearn
LT.-COL. J. R. MOODIK
Hon. Lorne C. Webster
F. HOWARD WU-SON
E. W. Knebland
<jORDON M. MCGEECOR
General Manager . - D. C. Macarow
Supt. of Branches and Chief Inspector : T. E. Merrett
General Supervisor - W. A. Meldrum
AN ALLIANCE FOR LIFE
Many of the large Corporations and Their banking connection is for life —
Business Houses v/ho bank exclus- yet the only bonds that bind them to
ively with this institution have done this bank are the ties of service, pro-
SO since their beginning. gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency: 63 and 65 Wall Street: W. M. Ramsay and C. J. Crookaii, AgenK
London, England, Office, 53 Cornhill : J. B.Donnelly, D.S.O., Manager
Bankers in Greal Britain : The London Joint City & Midland Bank. Limited, The Royal Bank of Scotland
THE MONETARY TIMES
Volume 66
RAILROAD EARNINGS
HOLIDAY BUSINESS WAS DULL
The following are the approximate gross earnings of
t'anada's trK.nscontinental railways for the first three weeks
in March: —
Canadian Pacific Railway
1921. 1920. Inc. or dec.
March 7 ?.S,25.-),000 $3,244,000 + ? 11,000
March 14 3,176,000 3,130,000 + 46,000
March 21 3,211,000 3,283,000 — 72,000
• Canadian National Railway
March 7 $2,049,345 $1,690,099 + $ 359,246
March 14 2,229,596 1,625,485 + 604,111
March 21 2,130,892 1,577,062 + 553,830
Grand Trunk Railway
March 7 $1,764,250 $1,654,205 + $ 110,055
March 14 1,841,416 1,753,684 + 87,732
March 21 1,750,890 1,854,767 — 103,877
EXCHANGE QUOTATIONS
Quotations of exchange on European countries and the
United States as at March 31, 1921, with comparisons, are
given below. The Canadian figures are supplied by the
Imperial Bank of Canada., while New York quotations are
given by the National City Co., Ltd., Toronto: —
Can., Mar. 23. Can., Mar. 31. N.Y., Mar. 31.
London, cheque . . 444.50 443.50 393.00
France 7.93 7.94 7.05
Germany 1.85 1.79 1.61
Belgium 8.30 8.31 7.35
Italy 4.40 4.73 4.13
Switzerland 19.76 19.60 17.40
United States ... lo'-',,, p. 12% p. ....
R. G. Dun and Co. report on Montreal district condi-
tions as follows: "Prospects for the early opening of naviga-
tion continue favorable, and the first sailings from Britain
for this port will be that of a freighter from Gla'Sgow on the
6th prox. The general trade situation shows gradual im-
provement and a further quickening is4;o be noted in several
lines. Eastern and central collections may be almost classi-
fied as good, and there has been some little improvement in
fcr western remittances. Easter .shopping in all lines of
wearing apparel has been fairly brisk, and wholesalers re-
port a goodly aggregate of sorting orders. The majority of
dry goods retailers were light buyers early in the season,
preferring to await market developments, and it is evident
stocks are low &s a rule, as the majority of the orders now
coming to hand call for quick shipment.
Regarding the Toronto district the following is said:
Chilly weather had a.n unpleasant effect upon Easter shopping
for the first days of last week, but the public show great
interest in Easter goods and the volume should compare
very well with average seasons. Wholesalers are content
for the time being to ship moderate replenishment orders
and to keep their own stocks within bounds, while admitting
that should a sudden demand arise, they could easily be
caught short stocked. Hosiery, undei^wear and knit goods
are not being ordered from the mills in a^ny quantity, and the
mills ai-e not prepared to manufacture against a doubtful
future. Yarn orders are cancelled, or not granted in quanti-
ties, coai-se to medium qualities are quoted 25 to 35 per cent,
lower, and fine counts are also down considera-bly. Men's
furnishing trade is sluggish and clothing has not moved too
freely. Tailoring business improved which may have an
effect upon woollens. Ladies' apparel sells well and makers
are rushed frequently.
WEEKLY BANK CLEARINGS
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended March 25, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
Date.
B
O
3
S
<
a
M
o
m
2
2i
o
H
o
05
Mar. 25 ..
. . 9
13
0
0
4
5
2
2
0
35
13
Mar. 18 ..
. . 6
17
4
0
5
2
0
0
0
34
Mar. 11 . .
..14
13
0
0
4
1
6
0
0
38
16
Mar. 4 . .
.. 5
12
0
2
1
2
9
0
0
31
16
BANK BRANCH NOTES
The Royal Bank of Canada has opened branches at Oak-
ville, Ont., and Sundridge, Ont. The Canadian Bank of Com-
merce have opened a branch at the corner of Arlington St.
and Notre Dame Ave., Winnipeg.
The Royal Bank has purchased property at Woodbine
and Danforth Ave., Toronto, and will build a branch there.
The Union Bank is to spend $150,000 on extensions to the
branch at Main St. and William Ave., Winnipeg.
D. M. Morris has been piomoted to assistant inspector
of British Columbia branches of the Roya.l Bank of Canada.
.4rthur Swinford has been appointed manager of the
Canadian Bank of Commerce at the comer of Staffoi'd and
Grosvenor St., Winnipeg.
The New York branch of the Merchants Bank of Canada
opened for business on Ma-rch 28 in its new offices at 38 Wall
St., building formerly occupied by Post and Flagg.
The following are the bank clearings for the week ended
March 31, 1921, compared with the corresponding week last
year: —
Week ending Week ending-
Mar. 31, '21. Apr. 1, '20. Changes.
Montreal $ 79,333,624 $136,110,762 — $ 56,777,138
Toronto 66,972,572 111,742,287 — 44,769,715
Winnipeg 30,135,781 44,351,597 — 14,215,816
Vancouver 10,294,341 16,640,476 — 6,346,135
Ottawa 4,654,716 9,142,007 — 4,487,291
Calgary 4,841,970 8,616,863 — 3,774,893
Hamilton 4,295,585 7,203,222 — 2,907,637
Quebec 4,534,161 6,308,980 — 1,774,819
Edmonton 3,076,006 5,410,163 — 2,334,157
Halifax 2,331,663 4,411,733 — 2,080,070
London 2,416,401 3,281,494 — 865,093
Regina 3,-552,281 4,078,112 — 525,831
St. John 2,194,961 3,019,265 — 824,304
Victoria 1,474,461 2,745,676 — 1,271,215
Saskatoon 1,4.58,093 2,141,862 — 683,769
Moose Jaw 993,989 1,680,378 — 686,389
Brantford 832,158 1,375,123 — 542,965
Brandon 492,471 728,086 — 235,615
Fort William 519,949 769,785 — 249,836
Lethbridge 476,108 842,983 — 366,875
Medicine Hat 274,320 478,208 — 203,888
New Westminster. . 406,602 708,407 — 301,805
Peterboro 739,330 749,486 ~ 10,156
Sherbrooke 701,036 1,252,149 — 551,113
Kitchener 677,510 1,162,807 — 485,297
Windsor 2,114,534 3,054,673 — 940,139
Prince Albert 386,022 540,404 — 154,382
Total $230,170,645 $378,536,988 —$148,366,343
Moncton $ 884,552
April 1, 1921
THE MONETARY TIMES
BANK
PAID UP CAPITAL ■ -■ -
RESERVE FUND . . - -
RESERVE LIABILITY OF PROPRIETORS
AUSTRALIA and NEW ZEALAND
OF NEW SOUTH
(ESTABLISHED 1817)
AGGREGATE ASSETS 30th SEPT., 1920
WALES
$ 24,655,500.00
16,750,000.00
24,655,000.00
$ 66,061,000.00
$362,338,975.00
Sir JOHN RUSSELL FRENCH. KB. E.. General Manager
357 BRANCHES and AGENCIES in the Australian States. New Zealand. Fiji, Papua (New Guinea), and London. The Bank transa
n Banking Business. Wool and other Produce Credits arranged.
LONDON OFFICE: 29 THREADNEEDLE STREET. E.C.2.
of Australa
HEAD OFFICE: GEORGE STREET, SYDNEY
ry description
Agents: BANK OF .MONTREAL. ROYAL BANK OF CANADA.
BUSINESS FOUNDED 1795
INCORPORATED IN CANADA 1897
AMERICAN BANK NOTE COMPANY
ENGRAVERS AND PRINTERS
BANKNOTES, BONDS. MUNICIPAL DEBENTURES, STOCK
CERTIFICATES, CHEQUES AND OTHER MONETARY DOCUMENTS
Special Safeguards Aua
1st Counterfeiting Work Acceptable on all Stock Exchanges
Head Oftice and Works: OTTAWA 224 Wellinglon St.
BRANCH OFFICES
TORONTO
19 Melinda Street
WINNIPEG
nion Bank BIdg.
Oborob Edwards. P.C.A. Arthur H. Eowa
H Pbrcival Edwards W. Pomerov Morgan W.He
A. Gbofprbv Edwards Oswald N. Edwakds Charl
T. J. Macnamaka T. p. Gcggib J. L. JK
K. A. Mapp W. A. LowiMBH John .'
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO ..
CALGARY . .
VANCOUVER
WINNIPE(5 ..
MONTREAL
CORRESPONDENTS
HALIFAX. N.S. ST. JOHN, N.B.
LONDON, ENG, PARIS, FRANCE
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK. U.S.A
ESTABUSHED 187«
AUoway & Champion
Bankers and Brokers
Members of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks- and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
When Your Will is Read
After your death it will be a matter of importance
to your heirs whom you have appointed as your
Executors and Trustees.
If you have appointed this Corporation with its
wide experience in estate management, which is
financially responsible, and bestows careful atten-
tion on every estate under its care, to whom your
heirs can go for friendly counsel at all times — they
will have absolute proof that you had their best
interests at heart when the Will was drawn, especi-
ally in the appointment of the Executors and
Trustees to carry out its terms.
Consult us to-day regarding your Will.
All communications treated in strictest
confidence.
THE
ToroatoGeaekalTrusts
CORPORATIOiS
Head Office: Cor. B.AY and MELINDA STS.. TORONTO
THE MONETARY TIMES
Volume 66.
Municipal Legislation Featured Quebec Session
Metropolitan Commission Bill and Changes in Montreal Charter Were Outstanding Measures —
Adjoining Municipalities Grouped With City — Bill to Limit Rentals Failed to Pass — Great-East
Life Insurance Company Incorporated— Scottish Trust and North American Trust Companies
THE 1921 session of the Quebec legislature was prorogued
on March 19. Supplementary estimates for the year end-
in June next were presented on the 19th by the Hon. W. G.
Mitchell, provincial treasurer. They provide for an additional
expenditure of $1,572,517. Included in this amount is $25,000
for exchange on the public debt; $47,049 for contingent ex-
penses and salaries in the legislature; $150,000 for administra-
tion of justice, $84,500 for lunatic asylums; $72,388 for health,
of which $47,388 is for protection of the public against venereal
disease; $128,500 for public works and labor; $150,000 for agri-
culture; $579,625 for improvement and maintenance of roads;
$177,000 for lands and forests; $25,000 for colonization, mines
and fisheries, and $104,600 charges on revenue.
Montreal Charter Bill
The city of Montreal bill was one of the last to be passed,
and several amendments were made. A clause authorizing the
city to pay pensions to certain former employees, inserted by
the private bills committee, was struck out. Hon. Mr. Perron
also inserted an amendment to provide that the city of Mont-
real may have an additional special borrowing power of one
million dollars. The administrative commission had asked for
unlimited borrowing power for its waterworks development,
claiming that there was only one million dollars of the special
loan left. The lower house committee and the committee of
the council objected to such an amendment, and Hon. Mr. Per-
ron made a concession by the grant of one million. This and
the million already on hand is considered to be quite sufficient
for all the work which can be done for some time to come.
Changes were also made in the Montreal commission bill.
One of these provided that the municipalities comprised in the
scheme must provide for the expense of the commission in
their budgets. Another amendment provided that the budgets
of the three municipalities in difficulties — St. Michel de Laval,
Montreal North and Pointe aux Trembles — should be submit-
ted to the commission for approval.
The city of Montreal, while retaining the majority of
membership, will not have its finances controlled by the com-
mission. None of the members of the commission will be
paid, the clause providing for an indemnity of $20 per
member per sitting being dropped. All the municipali-
ties within a certain radius of Montreal will be under
the control of the commission, but certain of the smaller
agricultural communities, municipalities outside, which will
not be affected by the growth of Montreal for half a cen-
tury, probr-.bly will be left entirely out of the scheme. The
commission will practically be an endorsing organization, guar-
anteeing the bonds of the municipalities contiguous to Mont-
real for a period of forty years. The only cost to the munici-
palities will be the cost of administration, which will not be
hea\^'. The three municipalities that are in bad shape —
Montreal North, St. Michel and Pointe aux Trembles — will
have money advanced to them to meet their interest obliga-
tions, this money to be repaid within a period of forty years.
One of the important government bills of the session —
that respecting disputes between employers and employees of
municipal public services — was also passed. It is intended
to meet an evil which is growing in Canadian cities. It is
entitled the "Municipal Strike and Lockout Act," and will
apply to policemen, firemen, waterworks employees and those
in charge of the incineration of garbage in municipal employ.
It will be unlawful for either lockout or strike to be called
without the dispute being submitted to a board of arbitration.
Other Municipal Legislation
A compromise was reached on the city of Verdun bill, re-
garding the demand of Mayor Leclair that the city of Montreal
should be compelled to pay taxes on the full valuation of its
property in Verdun, the assessable value of which is between
two and three million dollars, despite the clause inserted by
Montreal in Verdun's bill, ten years ago, that for twenty-five
years all Montreal's property shall be assessed at $450,000 and
the taxes paid not to exceed $4,500. The effect of the compro-
mise will be that Verdun will assess all the land owned by
Montreal, but exempt the buildings. This will mean that Mont-
real will be assesed about $1,500,000 and that Verdun will re-
ceive from the metropolis about $30,000 in taxes. The effect
of this will be to reduce the rates in Verdun next November
by about 22 cents per $100.
One of the most important bills introduced during the
later days of the session was a "Public Assistance" bill. There
is created a bureau of public charities, with provision for a
director of the bureau, whose duties it will be to carry out such
instructions as may be given him by the government. The
duties of the bureau provide for the carrying out of the act in
such a way as to assist public charitable work; intimate and
effective co-oper&tion with public charities; investigation of ap-
plications for grants; distribution and supervision of the use of
the grants made to institutions, and the taking of the necessary
means for obtaining the deportation and repatriation of immi-
grants who are liable to be deported under the Canada Immi-
gration Act. All institutions which are recognized by the
Lieutenant-Governor-in-Council as public charitable institu-
tions, and which accept the conditions of the bureau, may bene-
fit by the privileges granted by the act, and a list of such insti-
tutions is to be published each year in the official Quebec
Gazette. Applications for recognition must be to the bureau.
The funds for this assistance will be provided mainly by
an amusement tax. The bill provides that there shall be a tax
of 25 cents on every one-dollar admission ticket to race meet-
ings, 50 cents on every two-dollar ticket, and so on in like pro-
portion. When the receipts of pari-mutuel machines amount
to $10,000, 10 per cent, will be deducted from bets, 6 per cent,
to go to the race track association and 4 per cent, to the govern-
ment; if the receipts amount to $15,000; 5 per cent, will go to
the race track association and 5 per cent, to the government;
if $20,000, 4 per cent, will go to the race track association and
6 per cent, to the government, and so on. One-half of the pro-
ceeds of the general amusement tax will be given to the munici-
palities to be distributed to local charities, and the other half
will be paid to the government.
A bill dividing the Crown lands into two sections, one for
dealing with the leasing of timber rights, and the other for
development by settlers, was also passed. A contract between
the government, the Interprovincial and James Bay Railway
Company and the Canadian Pacific was ratified. An act re-
specting the construction of a railway from Kipawa to Riviere
des Quinze was passed.
Quebec Municipal Law
Another act contains many proposals for important
changes in the conduct of municipal affairs in the province.
Perhaps the biggest change is that abolishing the right of
municipalities to grant exemptions of taxation or commutation
of taxes for industries or commercial establishments. Another
important clause forbids any municipality, directly or indi-
rectly, to grant aid to industries.
Demands are made by municipalities year after year to
Ijhe legislature for power to adopt loan by-laws without the
sanction of the proprietors, but in future this will be impossi-
ble, for a clause forbids that all municipalities except Montreal
and Quebec must submit loan by-laws to a vote of proprietors,
notwithstanding any provision in their charters to the con-
trary. Power is given the compti-oller of provincial revenue
to take proceedings against any municipality which neglects
April 1, 1921
THE MONETARY TIMES
19
Your Lawyer Dislikes
Post-Mortem Litigation
He dislikes to see your widowand yourchildren deprived of what
you intended for them because of a dispute over a will or lackof a will.
Think, then ! This might happen to your family unless you have
a properly-made Will.
Have you ? If not, you should make one at once, and you should
appoint The Union Trust Company as executor, so that your wishes
will be carried out faithfully and without bias or legal complications.
;for .1 free copy of our booklet "Why a Will." Vou wil
be i
sted.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS |go
Winnipeg TORONTO London, Eng.
INCREASED PROTECTION FOR DEPOSITORS
The addition of $250,000 to our Reserve Fund out of
last year's earnings increased that Fund to $6,000,000 which
is equal to the Paid-up Capital.
Our depositors, therefore, have the protection of Twelve
Million Dollars of Shareholders' capital.
Open your account with the institution that has been
doing business in Toronto for more than sixty-five years and
has safe-guarded and helped to increase the savings of many
thousands of thrifty Toronto people, whose confidence it has
had for this long period.
You will receive interest at
THREE AND ONE-HALF PER CENT.
per annum, compounded half-yearly— whether your balance
be large or small.
Full privileges of <:heQue withdrawals.
Canada Permanent Mortgage Corporation
Establiibed twelve years befor.
14-18 TORONTO STREET
TORONTO
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building, London. Canada
Interest ai 4 per cent, payable half-yearly on Debentures
T. H. PURDO.M. K C . President NATHANIEL MILLS, Manager
The Hamilton Provident and Loan Corporation
Head Office. King Street, Hamilton. Ont.
Capital Paid-up. $1,200,000. Reserve Fund and Surplus
Profits, $1,315,587.70. Total Assets, $4,800,104.82.
TRL'STEF,S AND EXECUTORS are authorized by Law to invest Trus
Funds in the DEBENTURES and SAVINGS DEPARTMENT of thi'
GEORGF. HOPE. President
1). .M. CAMERON. General Manager
^"^ Ontario Loan
& Debenture Co.
LONDON Incorporated 1870
LAPITAK .-Vnii Reserve Find
Canada
14,000,000
511
SHORT TKRM (1 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
5^2
JOHN .McCLARV. President
A .M. S.MART. .Manager
QVER 200 Corporations,
^^^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Quarterly Dividend
Notice is hereby given that a Dividend of Two and one-quarter per
^cnt.. being at the rate of Nine per cent, per annum, upon the paid-up
Capital stock of this Company, has been declared for the current
Quarter, and that the same will be payable on and after iHt April.
1981, to Shareholders of record on the books of the Company at the
close of business on ISth inst. By order of the Board.
Toronto.ard .March, 1921. WALTER GILLESPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inquiries Invited
General Manager Lieut. Col. G. H. DORRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Adminislrator, Trnslee, Guardian, Liquidator
Aisignee, and in anj other (idnciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Sivift
Current Judicial District in Saskatchewan.
Branch Office • - Swift Current, Saskatchewan
JOHN R LITTLE, Managing Director
THE MONETARY TIMES
Volume 66
to deposit with the provincial treasurer the sinking fund neces-
sary and required by loan by-laws.
At present municipalities can only provide for lighting in
their districts, but under a new clause they will, in future, be
able also to supply power and heating in the municipality. An
amendment of much interest to financial men is that it is pro-
posed to extend for another year the clause permitting tempor-
ary loans which had been in force during the war. When any
vote is being taken on loan by-laws only propex'ty owners who
are electors can vote, and so many women proprietors have
thus been unable to vote. Under a new clause the right is
given to the husband whose wife is a property owner to vote
on such by-laws.
On a motion of the leader of the opposition a committee
was appointed to report on the publication in official form of
the debates in the legislature. On March 15 the house passed
a motion asking that the federal Railways Act be amended so
as to authorize the National Jlailways to give free transporta-
tion throughout Canada to members of provincial legislatures,
instead of limiting this free transportation to the provinces
in which the legislators reside.
Will Borrow for Universities
Grants of $1,000,000 each were authorized to Laval and
McGill Universities. This is payable by annual instalments of
not more than $200,000 each to each university. This is the
same as was done for the University of Montreal last year,
and there is provision also made whereby the provincial treas-
urer may hand over to Laval, McGill and also the University
of Montreal the amounts for each in one payment. This may
be donejby delivery of bonds to the amount, or in cash derived
from the negotiation of such bonds.
In addition the Lieutenant-Governor-in-Council may auth-
orize the treasurer to contract a loan or loans, not to exceed
?n the aggregate the sum of $6,000,000, such loans to be by
means of bonds, debentures or inscribed stock, for a term of
not more than fifteen years, at a rate of interest of not more
than 5^2 per cent., with the proviso that the treasurer may
redeem such loans at any time after five years from date of
issue. It is to be noted that the last provincial government
loans were issued at 6 per cent., consequently Mr. Mitchell is
of opinion that money is becoming easier. The proceeds of this
$6,000,000 loan are to be used as follows: $3,000,000 for the
three universities; the surplus used to refund to the consoli-
dated revenue fund advances made for purposes covered by the
Good Roads Act, 1912, until such time as a loan shall be made
under any act authorizing a loan for good roads. The bonds
issued under this measure are to be free of succession duties.
Workmen's Compensation
Premiel- Taschereau stated on March 17 that workers had
sent delegations to the government to ask that no change be
made in the Workmen's Compensation Act this session; that it
be studied and amendments be prepared by next session. That
was exactly what the government had done and intended doing.
The workers had asked for an arbitration act and it had been
given them; they had asked for a law regulating the construc-
tion of scaffoldings, and it had been given them. They did not
want a final settlement of the compensation act this year, and
that desire also was being granted.
Hon. Peter Bercovitch's bill to limit rentals failed to pass
the house. He urged, however, that the house should accept
the principle of the bill; that something should be done towards
restricting the greedy landlord at a time when prices and
wages are falling; the bill, said Mr. Bercovitch, aimed at un-
scrupulous, profiteering landlords, who cared little for the pub-
lic weal.
Hon. Mr. Taschereau admitted that there were abuses in
Montreal, but did not agree that it was certain that they ex-
isted in other parts of the province, and the premier specially
warned the rural members that the bill applied in rural munici-
palities as well as in Montreal. He would vote against the
application of the bill because it was not pi-acticable, and be-
cause of its principle, seeing that it was an invasion of private
rights. Quebec had emerged from the war stronger than had
the provinces which declared a moratorium. With such legis-
lation started there would be no knowing where it would stop,
and next year the member for St. Louis might bring in another
law to restrict earnings on something else. The bill would hit
landlords in the rural sections who had spent much on improve-
ments, even though the improvements demanded much more
than a 20 per cent, increase. He referred to attempts to con-
trol paper and sugar prices. The increases in rentals, went on
the premier, were in many cases due to the tenants themselves,
who bid against each other to get houses, and landlords could
not resist the temptation to accept the highest bidder. He
claimed that with decreasing wages workingmen could not
pay a 20 per cent, increase, so the law would not benefit them.
All bonds of the province, issued or to be issued, wei'e
made registerable, provision being also made for the collection
of a registration fee.
The "Alcoholic Liquor Act" provides for the taking over
of the liquor business by a commission of five members ap-
pointed by the government.
The Scottish Trust Company and the Anglo-American
Trust Company, incorporates! in 1919 by the province, have
had their time for commencing business extended to July,
1923. The Strathcona Fire Insurance Company, incorporated
in Quebec in 1909, is by an amendment authorized to write
fire, automobile, marine, inland transportation, theft, burglary,
riot and property damage insurance.
The Montreal Cotton Company, in return for furnishing
the city of Valleyfield with 125 h.p. of electrical energy, has
had its annual taxes payable to the city fixed at $21,000.
The Great East Life Insurance Company is incorporated
with head oflice in Quebec and the following provisional direc-
tors: Henri Grandbois, lumber merchant, St. Casimir; Dr. P.
C. Dagneu, Quebec; J. T. Chenard, insurance agent, Quebec;
Joseph Samson, mayor of Quebec; L. A. Richard, Quebec; Rev.
J. G. C. Plourde, Grand Riviere; S. Vachon, insurance agent
and printer.
THE COST OF FIRE PREVENTION
That insurance companies are primarily responsible for
property conditions which invite fire is a view commonly held
by the public, points out H. W. Crossin, of Armstrong, De Witt
& Crossin, Ltd., in the Toronto Board of Trade News for
March.
"Theoretically at least," says Mr. Crossin, "it makes no
difference to insurance as a whole what conditions are main-
tained. Whether water protection is good or bad, construction
high-class or ordinai-y, ordinances and laws good and well en-
forced or not; whether conditions as a whole are good or bad
and losses great or small, insurance will be adjusted to meet
the conditions which exist.
"Perhaps our practice of endeavoring to load the insurance
companies, as far as possible, with the cost of most of our
methods of improving conditions has been the means of creat-
ing the idea that the responsibility is theirs. It is quite evi-
dent that at one time the general impression seemed to be that
only the insurance companies were interested in anything
which worked for fire prevention or extinguishment. Prob-
ably this was due to the fact that fire brigades were originally
organized by insurance companies for the protection only of
the property insured by the companies supporting them.
Later, however, we find municipal fire brigades and salvage
corps were organized, but were maintained solely by a direct
tax on insurance companies. Fortunately, however, we are
getting away from that idea, but we have one important office,
viz., the fire marshal's office, which should be independent, but
which is maintained by a tax on the companies. The result Is
that there is always a feeling that any activities of that office
are prompted by and for the sole benefit of the companies. We
must absolutely get away from the idea that the business of
the fire insurance companies is to reduce the fire waste. Un-
questionably the cause and cure are in the hands of the public,
and in the last analysis the responsibility is its entirely."
April 1, 1921 THEMONETARY TIMES 21
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The Provident
I Assurance Company
Statement, December 31st, 1920
ASSETS
Cash on hand and in Banks $ 46,426.32
Debentures 155,486.32
Loans on security 15,000.00
Loans on mortgages 53,400.00
Real Estate 12,591.94
Due by reinsurers 18,851.89
Accounts receivable 14,668.12
Bills receivable 2,201.77
Furniture and Goad's plans 7,009.62
Stationery and supplies 5,000.00
Interest accrued 3,446.12
Premium in Agents' hands 154,284.14
Capital subject to call 820,662.00
LIABILITY
Claims in course of settlement ? 68,992.00
Due to reinsurers
Commissions accrued
Accounts payable
Reserve on unearned premiums
Reserve for depreciation on investments
and other assets
35,795.98
26,658.19
3,458.04
152,258.17
12,000.00
$1,309,028.24
Surplus to policyholders 1,009,865.86
$1,309,028.24
HEAD OFFICE: ONTARIO OFFICE: |
Canada Life Building . . . '. Montreal. C.P.R. Building Toronto. |
I Phones: M&in 4310-4311-4312-4313. Phones: Adelaide 4617-3091. 511 |
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Condensed Advertisements
"Positions Wanted." 3c per word : all other condensed advertisements
Sc. per word. Minimum charge for any condensed advertisement. 65c
per insertion. All condensed advertisements must conform to usual
style. Condensed advertisements, on account of the very low rateg
charged for them, are payable in advance : .SO per cent, extra if charge^j^
innmiiiiiiiiiiiii^
WANTED. — Two examiners of companies. Department
of Insurance, Ottawa. Initial salary, $2,880 per annum, plus
bonus provided by law. .A.pply Secretary, Civil Service Com-
mission, Ottawa. 512
SECRETARY-TREASURER, age 30, of large company
in British Columbia, desires connection in similar capacity
with well-established company in Ontario, Hamilton pre-
ferred. First-class accountant, with excellent credentials; the
more responsibility to be assumed, the better. Prepared to
go east immediately for interview for any legitimate proposi-
tion. Apply by wire or letter to H. .\nscomb, 1921 Govern-
ment Street, Victoria, B.C. 510
A meeting of the shareholders of the Ontario Loan and
Savings Co., Oshawa, Ont., is called for April 2, after which
the liquidator, M. J. Rowe, will make a final distribution of
the assets.
The Trustee Company of Winnipeg Ltd.
332 IVIAIN STREET
M. J. A. M. DB LA CICLAIS, .Man.-«ging Director.
See us for investments in allocated or guaranteed loans at attractive
s very active. While out of town, leave
ates
jterest.
Our Agency Department
afTaii
rcha
To Fire Insurance Officials
and brokers the Monetary Times
is indispensable. For fresh and
reliable insurance news it is ab-
solutely unrivalled by any other
daily or weekly in Canada.
On account of the completeness
of its fire record it is of great use
alike to the underwriter and the
salesman in the field.
All other departments are equally
as complete as insurance and are
considered as authoritative in
their respective fields.
I THE MONETARY TIMES OF CANADA |
I 62 Church Street :- TORONTO |
■imiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiaiiiiiiiM
22
THE MONETARY TIMES
Volume 66.
BRITISH COLUMBIA ESTIMATES HIGHER
Revenue of $17,010,595 and Expenditure of $16,980,208 for
Year 1921-22 — Net Debt Is $46,616,436
HIGHER estimates for the year ending March 31, 1920,
and again for the year ending M&rch 31, 1921, were
made by Hon. John Hart, British Columbia minister of
finance, in his budget speech on March 17. He first reviewed
the financial position of the province as sho^\'n by the public
accounts for the year ended March 31, 1920, which were recent-
ly reviewed in Tlic Monetary Times; these showed an excess
revenue of $2,293,600, and an excess of assets over liabilities
of $13,316,744. He also pointed Out that results for the first
nine months of the current year gave a balance on the right
side.
Regarding the coming year 1921-22, he said: —
Revenue and Expenditure
"The estimates of revenue and expenditure for the coming
fiscal year have been carefully and conservatively made, and,
in the case of expenditure, strictly in accordance wath the gov-
ernment's policy. We look for a revenue of $17,010,595, an in-
crease over the cuiTent fiscal year of $3,032,350, showing an
estimated surplus of $30,386 over the estimated outlay on cur-
rent account. The total estimated expenditure for the year is
placed at $16,980,208 on current account, and $2,868,765 capital
expenditure out of income, a total of $19,848,974, an increase
over the current year of $2,435,140.
"The revenue anticipated through the various departments
is as follows: Department of Attorney-General, $4,239,000;
Department of Agriculture, $41,000; Department of Education,
$74,000; Department of Finance, $8,374,615; Department of
Fisheries, $30,000; Department of Lands, $3,416,000; Depart-
ment of Labor, $35,000; legislative fees, $2,000; Department of
Mines, 163,000; Department of Provincial Secretary, $522,480;
Department of Public Works, $66,500; Department of Railways,
$47,000.
"The estimated expenditures by services, compared with
the present year, are as follows: —
1921-22 1920-21
Public Debt $ 2,829,633 $ 1,838,378
Legislation 109,870 109,870
Premier's Office 13,680 13,880
Dept. of Agriculture 386,778 342,736
Dept. of Attorney-General 1,659,207 1,183,720
Dept. of Education 3,418,227 2,864,613
Dept. of Finance 960,450 959,579
Dept. of Fisheries 18,090 18,090
Dept. of Industries 28,300 28,300
Dept. of Lands 1,774,400 1,324,395
Dept. of Labor 96,740 97,600
Dept. of Mines 306,004 375,201
Dept. of Provincial Secretary 2,400,420 2,013,086
Dept. of Public Works 2,903,808 2,745,223
Dept. of Railways 74,600 49,900
Chargeable to Capital 2,868,765 3,449,981
$19,848,974 $17,413,833
Bonded Indebtedness
"At March 1, 1921," said the minister, "the gross bonded
indebtedness of the province was $44,511,4.3,6, and temporary
borrowings from the bank $7,360,000, together with advance to
the district of South Vancouver of $790,000. Analyzing this
total, it will be found to be made up as follows: —
Consolidated revenue for liabilities prior to Novem-
ber, 1916 $25,576,936
Dyking Debentures 445,000
Land Settlement Board 2,650,000
Pacific Great Eastern Railway 15,878,000
Better Housing Act (loans to municipalities 1,361,500
Soldiers' Land Act 1,900,000
Water Act, 1914 (conservation) $1,195,000
Department of Industries 915,000
South Vancouver Loan Act, 1918 790,000
British Columbia University Act, 1920 100,000
Public Works Trunk Roads Loan Act, 1919, and
British Columbia Highways Act, 1920 1,850,000
$52,761,436
Less Treasury Bills held for reissue 100,000
Gross debt as at March 1, 1921 $52,661,436
Less Sinking Funds on hand 6,045,000
Total net indebtedness March 1st, 1921 $46,616,436
"Against the borrowing on account of the Pacific Great
Eastern Railway Company the pro.vince holds as security £l,-
217,522 10s. Pacific Great Eastarn first and second mortgage
guaranteed debenture stock, which, in Canadian currency at
$4.86%, is equivalent to $5,925,195. This stock has been pledged
to the province by the railway company as collateral security
for the repayment of the loan of $4,800,000, which forms part
of the increased indebtedness of the province sho-wn above.
Taxation Changes
Regarding taxes the minister said: —
"It is proposed to amend the Taxation Act at the present
session in the direction of making an allowance to mines on
account of depletion. This allowance will not apply to this
year, but during the coming months the department will look
into the systems employed by the Dominion government, as
well as in the United States, for arriving at a fair figure for
this item of deduction, so that a satisfactory method of fixing
depletion in this province may be established.
"An amendment will also be submitted changing the taxa-
tion year for income and personal property taxes. Returns
must be made before the 31st day of March in each year instead
of at the end of September, as at present. The rebate of ten
per cent, for payment before June 30 will not be allowed, but
the taxes will be in arrears after that date and will be subject
to a penalty of 1 per cent, per month until paid, in keeping with
the Dominion act.
"As was foreshadowed in my last budget address, the de-
partment is now engaged on the equalization of assessed values
of crown-granted timber limits, and it is expected that the
major portion of this undertaking will be completed before the
end of the year.
"The work of the taxation branch of my department con-
tinues to be effectively carried on, with the result that the per-
centage of taxes being collected has risen to a most gratifying
point. By way of comparison, it may be well to give a state-
ment of the taxes assessed and collected during the last five
years, which will make this plain: —
Taxes Taxes
Assessed Collected
1916 $2,731,039 $1,906,641
1917 4,553,026 3,432,721
1918 4,634,873 4,977,649
1919 5,823,985 6,072,809
1920 ___* - 5,232,634 6,371,309
"To show the necessity of effecting a prompt settlement of
taxes where possible, it is only necessary to mention the fact
that arrears for 1916 and previous years outstanding on the
rolls on December 31, 1920, were $432,430.20. A considerable
portion of this is income on personal property, which I am
afraid is uncollectable. For the year 1919, with double the
levy, the total arrears outstanding is only $560,741.27, of which
only $77,876.09 is for personalty and income.
"The total arrears outstanding on December 31, 1920,
amounted to $2,768,439.05. These figures will show that not
only has the department collected approximately 70 per cent,
of the taxes levied, but in addition has cleaned up over $3,000,-
000 of arrears outstanding when this administration took office
and which had been owing from as far back as 1904."
April 1, 1921
THE MONETARY. TIMES
23
DIVIDEND NOTICES *
DOMINION TEXTILE COMPANY, LIMITED
NOTICE OF DIVIDEND
A dividend of one and three-quarter per cent (1%'y'c)
on the Preferred Stock of the Dominion Textile Company,
Limited, has been declared for the quarter ending 31st March,
1921, payable April 15th to shareholders of record, March
31st, 1921.
By Order of the Board.
JAS. H. WEBB,
462 Secretary-Treasurer.
THE STEEL COMPANY OF CANADA, LIMITED
ORDINARY DIVIDEND No. 17
Notice is hereby given that a dividend of one and three-
quarters per cent, on the issued and fully-paid Ordinary
Shares of the Company has been declared for the quarter
ending March 31st, 1921.
PREFERENCE DIVIDEND No. 39
Notice is also given that a dividend of one and three-
quarters per cent, on the issued and fully-paid Preference
Shares of the Company has been declared for the quarter
ending March .31st, 1921.
The above dividends are payable May 2nd, 1921, to
shareholders of record at close of business, April 9th, 1921.
Bv Order of the Board.
H. H. CHAMP, Treasurer.
Hamilton, Ontario, March 17th, 1921. 509
NOVA SCOTIA STEEL AND COAL COMPANY, LTD.
DIVIDEND NOTICE
A dividend of two (2%) per cent, on the Preferred Stock
and one and one-quarter (1%%) per cent, on the Ordinary
Stock of the Company has been declared, payable on .A.pril
15th, 1921, to shareholders of record at the close of business
on March 31st, 1921.
By Order of the Board.
THOMAS GREEN,
Cashier.
New Glasgow, N.S., March 24th, 1921. 508
CANADIAN CAR AND FOUNDRY COMPANY, LIMITED,
' MONTREAL
DIVIDEND NOTICE
Notice is hereby given that a Dividend of one and three-
quarters per cent. (1%9'f) on the paid-up Preference Stock
of this Company for the quarter ending March 31st, 1921,
has been declared, payable on the 11th day of April, 1921,
to Shareholders of record at the close of business on the
26th day of March, 1921.
By Order of the Board.
A. C. BOURNE,
Secretary.
Montreal, March 18th, 1921. 500
McINTYRE PORCUPINE MINES.. LIMITED
(No Personal Liability)
DIVIDEND No. 13
Notice is hereby given that a dividend of 5 per cent.
(5%) on the issued Capital Stock of the Company will be
paid on the 2nd day of May, 1921, to Shareholders of record
at the close of business on April 8th, 1921.
Bv Order of the Board.
"m. P. VAN DER VOORT, Secretary.
Dated at Toronto, March 28th, 1921. 513
TENDERS FOR DEBENTURES
TOWN OF KAMSACK
Tenders will be received by the undersigned up to five
o'clock p.m. on Friday, April 15th, 1921, for the purchase
of $13,400.00 of 15-year 7'r Electric Light Debentures. Re-
payable in equal annual instalments of principal and interest.
Neither the highest or any other tender necessarily
accepted.
L. W. ANDREW,
Treasurer,
505 Kamsack, Sask.
TOWN OF NOKOMIS
Town Debentures for Sale: $20,000, fifteen equal annual
payments, interest eight per cent. Can be divided into $5,000
lots. Address offers to
C. L. CAMPBELL,
Town Clerk,
502 Nokomis, Sask.
TOWN OF VERMILION, ALBERTA
Sealed tenders marked, "Tender on Debentures," will be
received by the undersigned up to Monday, April 18th, for
the two blocks, viz.: (1) $20,000.00 at Gli^'c, temi 20 years,
repayable in 20 equal annual instalments of principal and
interest; purpose, to build fire hall, buy engine and construct
underground water tanks. (2^ $6,000.00 at 7^^, term 20
years, repayable in 20 equal annual instalments; purpose,
electric light and power extension.
Debentures are a debt on the town at large.
The highest or any tender not necessarily accepted.
Tenders will be opened 8 p.m., .^pril 18th, 1921.
H. P. LONG,
Secretary-Treasurer,
507 Vermilion, Alberta.
SUIT FOR AUTOMOBILE DAMAGES
The Quebec Court of Review, in reversing a judgment of
the Superior .Court, maintained the right of an insured party to
sue in his own name the author of damages he has sustained,
even if his loss has been paid by an insurance company. An
automobile belonging to Meyer C. Ginsberg was struck by an
express wagon of the Matthews-Blackwell Company descending
St. Lawrence street. Ginsberg sued the company for $470
damages. The court below had dismissed plaintiff's action on
the ground that his claim had been in fact paid by an insurance
company, and plaintiff had no interest, and therefore no action.
24
THE MONETARY TIMES
Volume 66
ALBERTA'S MUNICIPAL HOSPITAL SYSTEM
Eight Hospitals are Now in Operation — Charges are Light,
Most of Expenses Being Met by Taxation
By Angus Lyell
THERE are now eight municipal hospitals in operation in
Alberta — those at Drumheller, Vermilion, Cardston,
Mannville, Bassano, Islay, Onoway, and Lloydminster; and
the establishment of three more has been approved, in the
districts of Hanna, Viking, and High River.
The scheme is one of comparatively i-ecent date, legisla-
tion authorizing it dating back only to the year 1917. As a
matter of fact, it was the following year before the plan
became workable. The former minister of Health and Muni-
cipal Affairs, the late Hon. A. G. Mackay, did much to pro-
mote the success of the measure.
Hospitals are Self-Supporting
These hospitals are self-supporting and are erected on
popular request, the procedure being for the municipal coun-
cils or ratepayers of at least nine townships to petition the
minister to fonn a hospital district. The minister then en-
quires into the possibility of these townships being able to
finance the erection and maintenance of a hospital. He
may, if he considers the area too restricted, consult adjoin-
ing townships. In a case where the plan appears feasible,
it is submitted to the ratepayers of the area concerned, who
record by vote their approval or disapproval.
So far little difficulty has been experienced in financing
any of the hospitals. The four districts which have issued
debentures — Drumheller, Cardston, Mannville,- and Vermil-
lion— have sold these readily and at a substantial price.
Drumheller had an issue of $50,000 twenty-year hospital
debentures which sold at 106, the interest rate being seven
per cent. Vermilion sold $35,000 of similar debentures at
105. The issues were apparently attractive to bond dealers.
In all of the districts already formed, except Onoway,
where the charge is two dollars a day, ratepayers using the
hospitals pay only one dollar a day, except for use of the
operating room at Drumheller, Mannville and Vermilion,
where there are charges of $2.50 for minor and $5 for
maj.or operations. Transients and those who are not rate-
payers are charged $3.50 a day.
Costs Met by Taxation
The main revenue is the tax on the area included in
each hospital district, but so far this has been very light.
In nearly all of the districts, the charge per quarter section
per year has been less than $4.80. Bassano is an exception,
the reason being that in this district there is a good deal of
rented land against which taxes are not levied.
While the hospitals are being built according to certain
standards, they are developing according to the needs of
the several communities. Three types are already dis-
cernible.
There are the usual town hospitals, such as those at
Cardston, Bassano, Mannville and Vermilion, where there
is very little need of outside or district nursing. The hos-
pitals here are two story buildings, erected on modern lines.
Medical aid is available daily.
Then, as in the case of Onoway, there is the country
hospital, which often has no doctor in attendance. This
place was really established in 1913 by the Church of Eng-
land but was donated to the department last year and con-
verted into a municipal hospital. A graduate nurse is in
charge, and several first aid stations are operated in con-
nection with it.
The third type is that of the hospital at Drumheller,
which was formally opened in July last. Here we have the
best of the municipal hospitals as yet erected. The dis-
trict is a large one, comprising thirty-three townships, and
its centre, Drumheller, is an active coal mining town. There
was much need of a modern and efficient hospital and such
has been provided. The building is a three-story one. The
equipment includes X-ray apparatus, sun rooms, operating
rooms, and so on.
The popularity of the scheme is well reflected in the
vote taken recently at High River on the proposed formation
of a hospital district there. Since February last, the estab-
lishment of a district has been under consideration, the area
involved being considerably large. Proximity to Calgary
and the obvious advantages of medical treatment there were
factors against the scheme. Yet the vote in favor was
1,202 as against 257.
Directed by Municipalities
The administration of each municipal hospital is in the
hands of a board formed of representatives from each of
the municipal councils concerned. The number is fixed by
the minister, who, in certain circumstances, may appoint
members, as, for example, where municipalities have failed
to do so and in the case of Local Improvement districts.
In a province with a large area, such as Alberta, the
need of well-equipped hospitals at several points is obvious.
The story of the hardships experienced by many settlers
has not yet been written. Near proximity to a hospital
is an essential of modern life. But in thinly populated dis-
tricts, such provision is well nigh impossible. The plan
suggested by the Alberta legislature is that several town-
ships should combine, form a hospital district, and in that
way finance the erection and maintenance of a modern hos-
pital. The levy for taxes on the owners of the land in these
districts is but trifling. And these, in the case of sickness
necessitating use of the hospital, pay but a minimum daily
rate. The scheme is not only fair, but it is essentially
practical. Nor is it one depending on charity. Each hos-
pital is self-supporting. And it is in connection with the
development of the measure that the name of the late Hon.
A. G. MacKay will be best remembered. A hard and tire-
less worker, he did this very best to promote the establish-
ment of these hospitals.
MONTREAL AND QUEBEC SAVINGS INSTITUTIONS
Tendencies previously noted are again reflected in the Feb-
ruary statement of the Montreal City and District Savings
Bank and La Caisse d'Economie de Quebec. Deposits continue
to increase, the change in the former institution in that regard
being particularly good. The Montreal bank shows a consider-
able reduction in loans for the month, mth substantial advances
in security and cash holdings. On the other hand, the Quebec
bank reports a great amount of loans, with a reduction in cash,
and small changes in securities. The following are the princi-
pal comparisons: —
Montreal City and District Savings Bank
Feb., 1921 Jan., 1921 Feb., 1920
Dom. gov. dem. dep $ 93,364 $ 93,364 $ 642,376
Other dem. deposits 46,933,620 46,289,?08 41,947,219
Total liabilities 47,495,540 47,038,184 42,871,296
Gov. and other sec 13,612,926 13,.325,428 10,833,328
Cash 8,772,889 8,567,488 6,813,298
Can. municipal sec 15,685,561 15,204,085 15,728,125
Loans on bank stocks 807,978 863,243 809,611
Loans on other sec 8,619,423 9,130,405 ' 8,528,526
Total assets 50,575.216 50,1.54,177 45,736,764
Caisse d'Economie de Quebec
Feb., 1921 Jan., 1921 Feb., 1920
Dom. gov. dem. dep $ 202,041
Other dem. dep $10,925,048 $10,711,418 10,341,502
Total liabilities 12,261,573 11,877,752 11,473,670
Gov. and other sec 1,973,521 1,673,521 1,679,656
Cash 1,669,367 1,709,277 1,600,022
Can. municipal sec. 4,062,807 4,066,980 4.121,577
Loans on bank stocks 303,786 303,694 270,839
Loans on other sec 3,302,519 3,221,694 3,081,775
Total assets 14,158,083 13,774,262 13,283,871
April 1, 1921
THE MONETARY TIMES
25
^illllllllllllllMllinMlinillllMMIIIMIIMIinilllllMMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIt.'
I CHARTERED ACCOUNTANTS [
■rilllllllinilllllUIIIIIHIMIIIUIIMIIIIIIIIIIIIIIIIIIIiMIIIIIIIIIIIIIIMIIIHUnniinilllllllMIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIIIMMIIIinilllllMUIIIIIIII^
KENNETH BOWMAN
Chartered Accountant
(Successor to Baldwin. Dow Jir Bowman)
EDMONTON ALBERTA
CHARLES D. CORBOULD
Chartered Accountant and Aoditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
W. A Bawdkn, C.A. iF.C.A. EnRland and
Wales). F. H. KlDO, C.A.
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Braocb at Nanaimo, B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON ONTARIO
Established 188-2
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Chambers
Winnipeg, Man.
Arthur E. Phillips & Co.
Chartered Accountants
508-509 Electric Railway Chambers
WINNIPEG - Man.
Cable Address—" Unravel."
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS.
24 King Street West - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Specialists on Factosy Costs amj Product
Plione 3420 Bank of
Mai
Hamilton Bldg.
TORONTO
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING - - TORONTO, CANADA
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Ctiartered Accountants. Trustees.
Receivers. LiQuidators
Merchants Bank BIdg-. IS Weiiinston Street NVest ToronI
Established 1864 S' T' Rlfwor
R. Williamson, C.A. J. D. Wallace. C.A
A. J. Walker. C.A. H.A ShiachC.A.
RUTHERFORD WILLIAMSON & CO
Chartered Accountants, Trustees and
LiQuidators
86 Adelaide Street East. TORONTO
604 McGii.1. Building, MONTREAL
Cable Address - " WILLCO. '
Kepresented at Halifax. St. John. Winnipeg
Vancouver.
HENRY BARBER & CO
Established 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Ra
6 King Street West
ay Building.
TORONTO
Mill
Home
J. C
Wa
ar,
Cha
Bank
ulross .Millar, C.A.
ter J. Macdonald.C.A.
Macdonald & Co.
rtered Accountants
Building, 428 Main Street
WINNIPEG
Norman B. McLeod
Chartered Accountant
AUDITS INVESTIGATIONS
COST ACCOUNTING
803 Kent Bldg. - TORONTO
Phone MAIN 3914
THE MONETARY TIMES
JOINT BANK ACCOUNT AND THE WILLS ACT
Where Such an Account Is Opened With View to Making Gift
After Death, This Gift Is Not Valid Unless
Mentioned in Will
VJLT HERE a person deposits money in a bank to the joint
» '^ account of himself and another person it is a question of
intention whether such transaction is a gift inter vivos or is
a transfer of property by way of trust or whether it is a gift
which is not to take effect until the donor's death, and where
the e\'idence shows that this latter is the case the transaction
is of no validity by reason of the formalities of the Wills Act,
requisite in such cases, having been disregarded. This is the
substance of a recent decision of the New Brunswick Supreme
Court.
How Joint Account Was Started
The action was brought by Frank I. Shortill, as executor
of his father's \\ill, against Helen Grannan, concei-ning certain
moneys deposited to the joint account of his father and Helen
Grannan. Prior to April, 1914, the late Owen Shortill had in
the savings department of the Bank of Nova Scotia at Frederic-
ton a deposit to the amount of $1,100 or thereabouts. He with-
drew this money on April 15, 1914, and on the same day depos-
ited it in the Bank of Montreal at Fredericton in his own name
and that of the defendant, the defendant being described as
Helen M. Grannan. At the same time he and the said Helen
M. Grannan signed an agreement with the Bank of Montreal
to the effect that all moneys from time to time deposited to the
said account, and interest, might be withdrawn by either of
them, and each of them authorized the bank to accept as suf-
ficient acquittance for any amounts withdrawn from said ac-
count from time to time, any receipt, cheque or other document
signed by either or both of them. It was further provided in
the agreement that the death of either the said Owen Shortill
or Helen M. Grannan should in no way affect the right of the
survivor to withdraw the moneys deposited in the said account.
It will be seen, therefore, that the deposit in the Bank of Mont-
real in the joint names of Shortill and his niece was on the con-
dition that the money could be drawn by either or the survivor.
After Shortill's death, which took place on August 6, 1919,
the balance then in the Bank of Montreal to the credit of joint
account amounting to $1,147.22 was withdrawn on August 11,
1919, by the defendant. The plaintiff claims that the money
•was not the property of the defendant, but belonged to him as
executor under his father's will. This will was not put in evi-
dence, but throughout it was treated as having been made some
years before the money was withdrawn from the Bank of Nova
Scotia by Shortill and redeposited in the Bank of Montreal.
Not a Gift Inter Vivos
Chief Justice Hazen in his judgment says:
_ "It seems to me that the claim of the defendant that this is
a gift inter vivos cannot be sustained on the evidence of the
defendant herself. The money was in the Bank of Nova Scotia,
and in some way or other the plaintiff had, or he and his father
thought he had, some control over it. For this reason his
father decided to change it and put it in the joint name of him-
self and Miss Grannan, at the Bank of Montreal. For what
purpose he was doing it can only be judged from Miss Gran-
nan's statement of the conversation she had with him. Her
statement that he said he was going to have it in their names
jointly, and at his death she was to have the money; her state-
ment that he made the i-emark to her that he wanted her to
have it at his death; his further statement that if there was
any money left at his death she was to have it, all seem to me
to negative the idea of a gift inter vivos.
"I fail to find any evidence of intention on the part of
Shortill to create a trust or become a trustee. By no act which
admits of any other interpretation did he evidence that he him-
self had ceased to become the beneficial owner of the money In
qeustion and that such legal right to it, if any, as he retained
was held by him in trust for Miss Grannan. At any time dur-
ing his lifetime he could himself have drawn out every cent of
the amount under the agreement entered into, and Miss Gran-,
nan would have had no redress.
Intention Was Testamentary Gift
"In the present case I have come to the conclusion, in view
of the evidence, that the intention of Owen Shortill was that the
gift should not take effect until after his death. The fact that
he had believed that he had arranged with the Bank of Nova
Scotia that the money should go to his son Frank; the fact
that he evidently changed his mind and decided that his son
Frank should only get the farm and that what was left of the
money in the bank should after his death go to Miss Grannan;
the statements he made to Miss Grannan which I have already
quoted, and which are practically the only evidences of his in-
tention, all indicate that the gift which he intended was testa-
mentary in its character, and this to my mind is sustained by
the way in which the money was treated after it had been de-
posited in the Bank of Montreal. The fact that Miss Grannan
did not for years, not until after ShortUl's death, draw one cent
of the money; that she treated it as if it was his absolutely, and
acted upon his directions in regard to it, confirm me in this
view, and are of such a character as to almost lead to the con-
clusion that Miss Grannan viewed the matter in that light.
"Having concluded that there was no gift inter vivos, and
that there was no transfer of the property by way of trust, and
that the gift was not to take effect until the donor's death and
was therefore testamentary in its character and therefore of no
validity by reason of the fomialities of the Wills Act, requi-
site in such cases, having been disregarded, I have reached
the conclusion that the plaintiff must succeed."
INSURANCE LICENSES AND AGENCY NOTES
In addition to the classes of business for which it is
already licensed, the Niagara Fire Insurance Co. has been
authorized to transact in Canada the business of hail insur-
ance.
The Occidental Fire Insurance Co. has also been licensed
to transact hail insurance in Canada, in addition to other
classes.
Several provincial registrations have also been granted.
In British Columbia the London Assurance Corporation has
been licensed to transact inland marine and inland trans-
portation insurance. Previously the company was ?vriting
marine and automobile only.
The United Assurance Co., of Calgary, has been
authorized to transact fire and hail business in the province
of Manitoba.
Two certificates of registration have been issued by
the Alberta department of insurance, one being to the La
Sauvegarde Life Insurance Co. to transact life business, and
the other to the Merchants' Casualty Co., Winnipeg, to write
automobile insurance.
At the present session of the Manitoba legislature, an
application will be made to incorporate the Northwestern
General Insurance Co.
The "Order of the Scottish Clans for the Province of
Manitoba," has ceased to transact business in the province
of Manitoba.
Rainnie and Keator, Halifax, N.S., have secured the
agency for the Maritime provinces and Newfoundland of the
Tokio Marine and Fire Insurance Co. This company has
total assets of nearly fifty million dollars and a net surplus
of over thirty-nine millions. Hitherto it has had no agency
in this field. Another new agency recently secured by
Rainnie and Keator is that of the New Jersey Insurance
Co. with head office at Newark.
Reginald Lawson and Co., Ltd., insurance agents, Win-
nipeg, with offices in the Merchants' Bank Building, have
engaged G. Innes Mackenzie as manager of the casualty de-
partment.
Fred. W. Evans Co., Ltd., have been appointed general
agents for Montreal and district for the Merchants' Marine
Insurance Co., Ltd.
April 1, 1921
THE MONETARY TIMES
27
diMiiiiiiiiiiiMiiiiiiiiuiiiiuiiiniMiMiiiiiiiiiiiiiiiiiiiiiiniiinniiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiUMUiiiMiiiitiMMiiiiiiiiMiiiiiiMiunniiiniMii::
I REPRESENTATIVE LEGAL FIRMS |
^iiiiiiuiiHiiMUiiiiiiiiiiHiiiiiiniiiiiiiiiMinHiiiiiiiiMMiiiniiiiiiiiiiiiMiiiiiiiniiniiiiiiMiiiiiniiiiiHiiiiiiiiiiiiiniiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiJT
CALGARY LETHBRIDGE, Alta. SASKATOON
Charles F. Adams, K.C.
Bank of Montreal Bldg.
CALGARY ALTA.
W. F. VV. Lent, K.C. .\lex. B. .Mackay. M.A.,
LL.B. H. D. .Mann. .M.A. LL.B.
LENT, MACKAY & MANN
Barristers. Solicitors. Notaries, Etc.
aO.'i Grain E.xthange BldK-, Calgary. Alberta
Cable Address. "Lcnjo." Western Union Code
Solicitors for The Standard Bank of Canada.
The .Northern Trusts Co.. Associated .Mort-
gage Investors. &c.
WRIGHT &WRIGHT
Barristers, Solicitors, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. A. C. Rutherford, K.C. LL.D.
F, C. Jamicson. K.C. Chas. H. Grant
S. H. .McCuaig Cecil Rutherford
RUTHERFORD, JAMIESON
& GRANT
Barristers, Solicitors, Etc.
514-18 McLeod Bldg. Edmonlon, Alberta
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barriaters, Solicitora. Etc.
Solicitors for Bank of Montreal. The Trust
and Loan Co. of Canada. British Canadian
Trust Co.. &C..&C.
C. F. P. Conybeare. K.C. H. W. Church. .M.A.
R. R. Davidson, LL.B.
Lethbridse AUb.
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE - Alberta
MEDICINE HAT
0. F. H. Lose,
LL.B.
J. W, Sleight, B.A.
LONG
&
SLEIGHT
Barristers, etc.
MEDICINE
HAT
and BROOKS, Alta,
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers, Etc.
Solicitors-Bank of .Montre.il
Canadian Hank of Commerce
Moose Jaw • Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trnst Building
NEW WESTMINSTER, B.C.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT. SASK.
C, L. DuRlE. B.A. B. M. Wakeling
DURIE & WAKELING
Barristers and Solicitors
Solicitors for the Bank of Hamilton. The
("ireat West Permanent Loan Co. The
.Monarch Life Assurance Co.
Canada Building Saskatoon. Canada
TORONTO
G. W. MORLEY& COMPANY
Barristers. Solicitors. Etc.
802 Lumsden Building. Toronto
Solicitors for A. G. Spalding & Bros, of Can.,
Ltd.; A. J. Reach Co. of Can.. Ltd.: Dominion
Chautauquas, Ltd., etc., etc.
Special attention given to Corporation work
and collections.
Cable Address: "Morley," Toronto
VANCOUVER
\V. J. Bowse, K.C- R. L, Keid. K.C,
D. S,\V.,Ilbridt;L. A HDouShis .I.G.Gibson
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers, Solicitors, Etc.
Solicitors for Bank of Montreal (Bank of
British North America Branch)
Yorkskire BuiMing. 52S Seymoar St„ Vancouver, B,C.
Your card here tvould
ensure it being seen by
the principal financial
and commercial interests
in Canada. Ask about
special rales for thispage.
J. A. THOMPSON & CO.
Government and Municipal Securities
cipal. School and Saslcatchewi
ne Co. Debentures specialized
cokki:sp()NI)i;nci-; i.witf.d
Union Bank Building
WINNIPEG
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL
, Limited
STOCK, BOND and GRAIN
BROKERS
(Direct Private Wire
)
Grain Elxchange
Calgary, Alta,
A. J. Pattison Jr. & Co.
Members
Toronto Stock Exchange Montreal Stock Exchange
Specialists Unlisted Securities
IDS BAY STREET - TORONTO
28
THE MONETARY TIMES
News of Industrial Development in Canada
Discount of Pound Sterling Here Preventing General Movement of British
Capital to this Country— Flax Growing in New Brunswick Will be Encouraged—
Whalen Pulp and Paper Company Engages Dollar Company to Market Products
THERE aro many British manufacturing companies which
are contemplating extending their operations to Canada,
but the time has not yet arrived when there will be any gen-
eral movement. In the first place business conditions demand
care in expansion at the present. The chief reason, however,
is the discount of the pound sterling here. While in Victoria,
B.C., last week, Lieut.-Col. T. A. Ross, foreign representa-
tive of the powerful Rudge-Whitworth manufacturing and
engineering group of industries in Britain, expressed his
views on the situation. He said : —
"Development will hinge, of course, on the readiness of
capital to invest in enterprises, and I may say that the
British investor these days is a very rare and cautious man,
especially while the pound sterling is at a discount. When
it returns to par, or something near it, you may expect with
confidence a general movement of British investment capital
to Canada. British investors want to be sure that they are
properly safeguarded and confiscatory leg'islation is some-
thing that they naturally strive to avoid. The country with
the best record in this respect is likely to secure the most
generous treatment from Britishers who have money to put
into industrial enterprise."
In connection with the expanding of the flax growing in-
dustry in the province of New Brunswick, Max Hudson,
manager of the Eastern Flax and Seed Co., Ltd., of Shediac,
has been in conference with the provincial department of
agriculture. Mr. Hudson stated that last year the company
had planted twenty acres of land in flax, the average yield
from which had been over seven bushels of flax seed to the
acre and two and one-half tons of straw. The company
had put in a mill for processing the flax and this year had
one hundred acres ploughed and ready for seeding. Last
year's crop had been made into tow and marketed in the
United States, but this year the company were considering
putting in equipment to manufacture the fibre into linen
yarn, the Maritime Linen Mills at Moncton having agreed to
take the whole output of yarn.
The Pulp and Lumber Trade
Negotiations have been closed whereby the Canadian
Robert Dollar Co. will market all the products of the Whalen
Pulp and Paper Co., including pulp, lumber and shingles for
a period of three years. In the face of the fact that all the
exports of the Powell River and Ocean Falls Companies are
marketed through the Crown Willamette Pulp and Paper
Co., of Portland, the announcement that the Dollar company
will control the sales of the three Whalen Pulp Mills and all
the lumber and shingles from these plants is regarded with
satisfaction. "British Columbia products through a British
Columbia port is our motto," said T. W. McGari-y, president
of the Whalen company, "and we feel when acquiring the
world-wide system of the Dollar company in opening new
markets and developing those we already have, we are
putting our sales department in the best hands we could
possibly secure. Every office of the Dollar company in all
foreign ports will become an office for the sale of British
Columbia pulp and other forest products."
Work has commenced at the plant of the Western
Canada Pulp and Paper Co., at Howe Sound, B.C., both on
construction work and pulp manufacturing. The plant closed
down some months ago when the market sagged to an un-
profitable basis on Kraft paper. The Kraft market has im-
proved slightly, and the outlook is much better. Several new
units are being added to the company's mill, and when in-
stalled the company's plant will have a capacity of 40 tons
per day.
Fraser Companies, Ltd., together with practically all
of the other lumber concerns in the province have definitely
determined not to open their mills this year except or. a
lO-hour day basis with reduced wages. The local unions of
the International Timber Workers of America are oppos-
ing these plans.
Lumber production by the mills of the Ottawa Valley
during 1920 showed a decrease of 26,030,350 feet or about
ten per cent, of the cut by the same mills in 1919. The out-
put of lumber for 1920 amounted to 275,670,000 feet. Lath
production increased by nearly three million pieces and
shingles declined by about one and one-quarter million pieces.
The lumber exports from the Ottawa consular district to the
United States amounted to 127,531,430 feet, an increase of
22,780,449 feet over 1919. Of the Ottawa Valley mills, W.
C. Edwards and Co., now the Gatineau Co., Ltd., was the
largest producer of lumber, lath and shingles. This com-
pany in 1920 manufactured 60,000,000 feet of lumber, ten
million pieces of lath and a like number of pieces of shingles.
Coal Producticjn Reduced
That at the present time the Dominion Coal Co. can
only get a sale for 100,000 tons of coal a month, about one-
third of a normal monthly output, and until such time as
the company can get a market for the whole of their out-
put, it means that the company will only be able to operate
their mines at Glace Bay, N.S., about one-third time. This
was the statement made by Assistant General Manager H.
J. McCann, last week.
The Ames-Holden-McCready, Ltd., report they are run-
ning full blast in all departments, leather, rubber and can-
vas shoes, and conditions have not only improved, but show
sig-ns of further progress. All their factories are now operat-
ing ag-ain.
Gait, Ont., is to have another new industry, Hi-Speed
Tools, Ltd., in which local capital is interested. The new
firm has received its charter and is capitalized at $40,000.
The new wing of the Perfect Machinery Co.'s works has been
leased and the machinery has been ordered, most of it from
local concerns and on or about April 10th, it is expected the
baby industry will be in operation.
Three branches of a new industry for British Columbia
are to be established by the Orange Ciiish Bottling Co., Ltd.,
which has its head oflices in Winnipeg, with a factory there
and others at Brandon, Saskatoon, Calgary and Edmonton.
Vancouver, Victoria and Nelson will be the locations for
the pi'oposed branches in British Columbia.
The Service Motor Truck Co., of Wabash, Ind., which
acquired a $50,000 factory site on the London and Port
Stanley Railway some months ago, and which later cancelled
its building plans pending a settlement of business condi-
tions, has notified officers of the London, Ont., Chamber of
Commerce that construction will begin in June. The com-
pany will build three buildings 110 by 300 feet and a power-
house as the first group, and expects to have several hundred
men empoyed in the autumn. Tlie factory here is intended
to provide for Canadian business and export trade in the
British possessions.
The first commercial use of a deposit of fine white
Kiselgur clay, the only known deposit of its kind on the
continent, is being made in the manufacture of a fire lighter
with kerosene as the fuel. The fire lighter in the form of a
small brick is being manufactured in Medicine Hat by an
arrangement with the owner of the deposit, H. McKellar, a
farmer at Waldeck, Saskatchewan. Another valuable clay
deposit discovered at Lumsden is shortly to be developed.
This is a shale which, actual test has shown, can be con-
verted into pressed brick, wire cut brick and hollow tile of
the first grade. A company capitalized at $250,000 is to be
organized by the owners of the property.
April 1, 1921
THE MONETARY TIMES
The Imperial
Guarantee and Accident
Insurance Company
of Canada
Head Office, 20 VICTORIA ST., TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $'200,000.00
Authorized Capital - - - $1,000,000.00
Subscribed Capital - - ■ $1,000,000.00
Government Deposits $111,000.00
ACCIDENT COY.. Limited
Head Office for Canada - Toronto
nployers' Liability. Elevator, Contract
Guarantee, Internal Revenue, Sii
Teams and .Automobile.
AND FIRE INSURANCE
IT PAYS TO INSURE YOUR AUTOMOBILE
WITH
The Canadian Surety Company
Max
Servic
Minin
Cost.
CANADIAN STRONG PROGRESSIVE
\ fii»i&m^^9lai»f^Bi9<&mimt
FIRE INSURANCE
AT TARIFF RATES
Barglarjr
A. B. Hab, Vice-President Hojib Office
J O. Melin. Sec.-Treas. lOtk Floor, Electric Railwiy Cliainbert
Good Openinsa for Live Agents
Palatine Insurance Company
LIMITED
OF LONDON. ENGLAND
Capital Fully Paid $1,000,000
Fire Prenniums, 1919 3,957,650
Total Funds - 6,826,795
Head Office : — Canadian Branch
COMMERCIAL UNION BUILDING, MONTREAL
W, S. Joi'L'VG. Manoser
Toronto Office— bQ KING STREET WEST
Jones & Proctor Bros., Li.mitkd. Agents
BiiiiiiiiiiiiiiiiiiniMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiin^
I B
I Automobile— 1 92 1 —Season |
1 Policies to cover ANY or ALL motoring risks 1
I ATTRACTIVE AGENCY CONTRACTS I
I British Empire Fire Underwriters
I 82-88 King Street East, Toronto
■ Assets Exceed $4,000,000
^ilillilllllllllllllillllilllillliilliiliililllllllllillllllllllllilHIIillllllilllllliillilllllll
cr
Do You Believe
in Canada?
If you do you believe in patronizing
Canadian companies in preference to
all others when their goods and prices
are the same, and vou will insure in
THE CANADIAN FIRE INSURANCE CO.
HEAD OFFICE. WINNIPEG
AGENTS EVERYWHERE
THE EMPLOYERS'
LIABILITY ASSURANCE CORPORATION
OF LONDON, ENG. limited
ISSUES
Personal Accident Sickness
Employers' Liability Automobile
Workmen's Compensation Fidelity Guarantee
and Fire Insurance Policies
C. W. I. WOODLAND
General Manager for Canada and Newfoundland
Lewis Building,
MONTREAL
JOHN JENKINS,
Fire Manager
Tetiiple Bldg.
TORONTO
30
THE MONETARY TIMES
NEW INCORPORATIONS
AUTHORIZED capital of $14,850,800 is represented by
companies whose incorporation was reported to The
Monetary Times during the week ended March 30, compared
with $16,957,750 for the previous weelc. A comparative sum-
mary by provinces is as follows: —
Week ended Week ended
March 23. March 30.
Dominion $ 5,635,750 $ 1,950,000
Alberta 665,000
British Columbia 955,000 1,113,000
Manitoba 1,235,000
New Brunswick 4,900
Ontario 9,470,000 4,669,000
Prince Edward Island 80,000
Quebec 897,000 4,984,900
Saskatchewan 149,000
Totals $16,957,750 $14,850,800
The following is a list of the companies incorporated
under Dominion charter, with head office and authorized
capital: —
Coffield Washer Co., of Canada, Ltd., Hamilton, $50,000:
Preston's Pure Preserves, Ltd., Montreal, $50,000; Lincoln
Investment Co., Ltd., Toronto, $50,000; Standard Factories
Corp., Ltd., Montreal, $100,000; Pacific Color Manufacturing
Co., Ltd., Vancouver, $250,000; Stodart's Canadian Agency,
Ltd., Halifax, $50,000; Morris Devices, Ltd., Toronto, $100,-
000; Ratepayers' Gas and Power Co., Ltd., Edmonton, $500,-
000; Naval and Military Press, Ltd., Montreal, $50,000;
0-Pee-Chee Co., Ltd., London, $250,000; Happy Thought
Foundry Co., Ltd., Brantford, $500,000.
The following is a list of the companies incorporated
under provincial charter, with head office and authorized
capital: — •
Alberta. — Metropolitan Printing Co., Ltd., Edmonton,
$40,000; British Columbia Sugar Refining Co. (Alberta),
Ltd., Calgary, $20,000; Dominion Agencies, Ltd., Medicine
Hat, $20,000; Alberta-Pas Mining Co., Ltd., Edmonton, $50,-
000; P. A. Gillilan, Ltd., Calgary, $50,000; Franklin Farms,
Ltd., Calgary, $50,000; Christensen Motors, Ltd., Camrose,
$40,000; Coburn Store, Ltd., Carbon, $25,000; Wilton Store,
Ltd., Jenner, $25,000; Sorenson Store, Ltd., Donalda, $25,000;
Art and Picture Frame Co., Ltd., Calgary, $25,000; Thomp-
son and Dynes, Ltd., Edmonton, $100,000; Gadsby U.F.A.
Community Hall, Ltd., Gadsby, $10,000; Owens, Smith and
Co., Ltd., Edmonton, $30,000; Braemar Farming Co., Ltd.,
Calgary, $20,000; Joffe Bros., Ltd., Drumheller, $20,000;
Star Lumber Co., Ltd., Calgary, $25,000; Hird Drug Co., Ltd.,
Edmonton, $20,000; Western Brokers, Ltd., Edmonton, $20,-
000; Chamber of Commerce Premises, Ltd., Edmonton, $30,-
000; Medicine Hat National System of Baking, Ltd., Medicine
Hat, $20,000.
British Columbia. — B.C. Window Bakeries, Ltd., Vic-
toria, $10,000; New Oil Fields Corp., Ltd., Vancouver, $25,-
000; Commercial Taxi Co., Ltd., Vancouver, $10,000; Robin- '
son Lumber Co., Ltd., Vancouver, $20,000; Maple Leaf Film
Co., Ltd., Vancouver, $20,000; Prince George Tourist Club,
Ltd., Prince George, .$2,000; Allan, Morgan and Co., Ltd., Van-
couver, $10,000; T. B. Ross and Co., Ltd., Victoria, $60,000;
Chanticleer, Ltd., Vancouver, $75,000; Pacific Coast Storage
Co., Ltd., Vancouver, $10,000; Louvre Club, Ltd., Vancouver,
$10,000; Washington Club, Ltd., Vancouver, $10,000; Na-
tional Industrial Corp., Ltd., Vancouver, $500,000; Wright
Drug Co., Ltd., Vancouver, $10,000; Mount Bruce Mill Co.,
Ltd., Victoria, $15,000; Harbor Sand and Gravel Co., Ltd.,
Vancouver, $150,000; Granite-Poorman Mines, Ltd., Nelson,
$100,000; Shepard, Fruit Products Co., Ltd., Kelowna, $49,-
000: Pasquia Hills Oil Co., Ltd., Vancouver, $25,000; Prince
George Country Club, Ltd., Prince George, $2,000.
Manitoba. — W. F. Hartwell and Sons, Ltd., Swan Lake,
$50,000; Angusville Building Co., Ltd., Angusville, $10,000;
Korker Shoe Co., Ltd., Winnipeg, $30,000; Childs Co., of
Manitoba, Ltd., Winnipeg, $1,000,000; Capitol Films, Ltd.,
Winnipeg, $30,000; Winnipeg Fur Auction Sales Co., Ltd.,
Winnipeg, $10,000; Barclay and O'Hara, Ltd., Brandon,
$00,000; United Farmers of Provencher Political Executive,
Ltd., Morris, $5,000; Dack's, Ltd., Winnipeg, $40,000.
New Brunswick. — Apahaqui Garage, Ltd., Apahaqui,
$4,900.
Ontario.— The Wilton Dairy Co., Ltd., Wilton, $10,000;
McGeachy's, Ltd., Chatham, $50,000; Border Cities Tool Co.,
Ltd., Windsor, $40,000; Whitby Financial Corp., Ltd., Whitby,
$10,000; General Truck and Auto Sales, Ltd., Walkerville;
$200,000; Lookout Point Country Club, Ltd., Welland, $150,-
000; A. C. Lewis Co., Ltd., Toronto, $50,000; Urban Im-
provements, Ltd., Toronto, $40,000; National Handles, Ltd.,
Toronto, $40,000; Upper Canada Estates, Ltd., Toronto,
$24,000; Pure Meat Products Co., Ltd., London, $20,000;
Hubbard Portable Oven Co. of Canada, Ltd.. Toronto. $40.-
000; London Art Glass and Mirror Works, Ltd., London,
$50,000; Canadian Saw Mills, Ltd,, Toronto, $250,000; John
Armstrong. Ltd., Guelph, $75,000; Walker Bros., Ltd., Owen
Sound, $100,000; L. and C. Cloak Co., Ltd., Toronto, $40,000;
H. B. Moore, Ltd., Toronto, $200,000; Manufacturers'
Agencies, Ltd., Toronto, $40,000; Auto Service Garages,
Ltd., Toronto, $75,000; Smith-Drew, Ltd., Toronto, $40,000;
Wentworth Securities, Ltd., Hamilton, $500,000; Diamond
Tobacco Co., Ltd., Leamington, $1,000,000; Rendix Mines,
Ltd., Toronto, $1,000,000; Smith Electric Co., Ltd., Sarnia,
$40,000; Uxbridge Milling Co., Ltd., Uxbridge, $40,000;
Queenston Quarries, Ltd., St. David's, $250,000; Lakeside De-
velopment Co., Ltd., Toronto, $100,000; British Colonial
Finance Corp., Ltd., Toronto, $40,000; Taylor Bros. Cutlery
Co., Ltd., Hamilton, $75,000; McGillivray Bros., Ltd., Toronto,
$40,000; Parkway Clothing Co., Ltd., Toronto, $40,000.
Prince Edward Island. — Prince Motors, Ltd., Summer-
side, $40,000; the W. T. Wellner Co., Ltd., Charlottetown,
$40,000.
Quebec— Read Motors, Ltd., Three Rivers, $199,000;
Societe des Produits Francais, Ltd., Montreal, $100,000;
Business Directory Services, Ltd., Montreal, $2,000,000;
Quenneville, Noell and Co., Ltd., Montreal, $20,000; La Com-
pagnie Bernier and Dufour, Ltd., St. Benoit J. L. d'Amqui,
$49,000; Consolidated Sand Co.,. Montreal, $380,000; M. A.
Ouellett and Frere, Ltd., Sainte-Angele-de-Merici, $49,000;
Gagnon and Tremblay, Ltd., de Chicoutimi, Chicoutimi, $49,-
000; Eugene Falardeau, Ltd., Quebec, $49,900; General
Agencies, Ltd., Montreal, $500; La Compagnie de Traction
Generale, Ltd., Hebertville Station, $6,000; D. I. Pouliot, Ltd.,
Quebec, $9,500; La Cie de Chaussure Nationale, Ltd., St.
Eloi, $49,000; Albert Jauvin, Ltd., Montreal, $20,000; Acme
Dress Co., Ltd., Montreal, $20,000; Dominion Pants Co., Ltd.,
Montreal, $19,000; the Canadian Pulp Machine and Engi-
neering Co., Quebec, Ltd., Montreal, $500,000; Montreal
Paint and Varnish Co., Ltd., Montreal, $1,000; Summer Re-
sort Association, Inc., Montreal, $45,000; Star Skirt and
Dress Co., Ltd., Montreal, $20,000; East End Public
Abattoirs, Ltd., Montreal, $49,000; Osborne Improvement
Co., Ltd., Montreal, $50,000; R. T. Smith Construction Co.,
Ltd., Montreal, $20,000; Chs-N. Paradis, Ltd., Quebec, $45,-
000; Maine Buff'et, Ltd., Montreal, $19,000; La Boheme Cafe,
Inc., Montreal, $20,000; S. and A. Mendelsohn, Ltd., Mont-
real, $99,000; Brand Farmer New Laid Egg Co., Montreal,
$49,000; Canadian Clothes Shops, Ltd., Montreal, $19,000;
Black and White Motor Co., Ltd., Montreal, $20,000; Pelchat
Freres and Brochu, Ltd., Saint-Maxime-de-Scott, $19,000;
Dominion Amusements, Ltd., Montreal, $49,000; Traders
Guarantee Co., Inc., Montreal, $100,000; St. Maurice Liriie
Co., Ltd., Three Rivers, $750,000; Eastern Townships Motor
Sales, Ltd., Sherbrooke, $99,000.
Saskatchewan. — A. W. Irwin, Ltd., Moose Jaw, $40,000;
Grant and Johnston Co., Ltd., Regina, $20,000; Lloydminster
Agricultural Exhibition Association, Ltd., Lloydminster, $50,-
000: Bethune Recreation Grounds; Co., Bethune, $10,000;
McKee Bros., Ltd., Star City, $24,000; Davidners', Ltd.,
Swift Current, $5,000; Western Wine Co., Ltd., Regina,
$20,000.
April 1, 1921
THE MONETARY TIMES
31
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
haslivecluptoit£ motto "Solid as the Continent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
•■SOLID .\S THE CONTINENT"
HEAD OFFICE TORONTO
Important Features of the Ninth Annual Report
WESTERN LIFE ASSURANCE CO.
HEAD OFFICE WINNIPEG, MAN.
Assurances, New and Revived 81,308,750.00
Premiums on same .... 44,705.25
Assurances in Force 4,233,907.35
Total Premium Income 128,286.67
Policy Reserves 291.969.00
Admitted Assets . 358,667.36
Average Policy 2,306,04
Premium per 81,000 Insurance — Collected in
Cash 30.30
For pijrticulars of a good afiency apply to
ADAM REID. Managing Director WINNIPEG
The Mutual of Canada Day by Day
Dunns the J car 1920 the average payments in benetils of ditTerent kinds
to hencKci iries and policyholders amounted tt> $11,500 for every
working day throufthout the year, a total of 83.J92.830. Every year
the payments have increased, the total made since the establishment of
the company beins over thirty-three millions. The funds in hand to
ftuarantcc future payments amount to forty-two millions -so that the
company has either paid or holds in trust more than §75.000.000. This
total exceeds the premium income by eight millions. These figures show
that the Mutual Life of Canada is making good on all contracts entered
into in past years. It is not only "making good." it is " making better."
for the proHts alone actually paid during the years since establishment
amount to eight millions of dollars, a record of economy and service of
which any life office might justly be proud.
The Mutual Life Assurance Co. of Canada
"The Great Fire Insurance Company of the World."
THE LIVERPOOL AND LONDON AND GLOBE
INSURANCE COMPANY, LIMITED
Head Office in Canada Montreal
Ulr
rli.r«
lithers. I^sq.
r. Esq.
Will. .Molson Macphcrson. Esq.
Sir Frcdeiicli Williams-Taylor
Alexandre Lacostc
J. «;ariliirr Tlinniiison, M.nnager Li-wIk Lnliix. Asst. .ManaKc
Alexander Stewart.
.Agency Superintendcnl
Western Ontario Branch :
(Excelsior Life BuildinK.
W. O, Rich.
Fire Superintendent
North-West Provinces Branch ;
(Paris BuildmK, Winnipegl
Toronto) S. \. Richards, Local .ManaRer.
pson. Local .ManaRer L. O. C. Wright, Asst. Local .Manai;
Maritime Provinces Branch :
1118 Prince \A illinni Street. St John. N.H I
J. Cecil .Mitchell. Local .Manager.
INFORM YOURSELF
There is no question on which it is so essential to ob-
tain reliable and unbiassed information as concerning
Life Insurance.
Such information may be freely obtaineij, at[(irsl hand,
by corresponding with The Great- West Life Assurance
Company — a company thai has earned a reputation in
every part of Canada for the value and liberality of its
Policies.
State your age. Rates on suitable Policies will then
be given — none the less freely though you have no
Immediate intention of insuring.
THE GREAT- WEST LIFE ASSURANCE COMPANY
DEPT. "F"
HEAD OFFICE . WINNIPEG
The Western Empire
Life Assurance Company
Head Oiiice : 701 Somerset Building, Winnipeg, Man.
SASKATOON
Offices
EDMONTON
VANCOUVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office for Canada, Hamilton, Ont. Assets over $1,700,000
Writmg Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NORMAN S. JONES, Manager R. J. MAHONV. Asst Manager
ASK FOR AN AGENCY FROM THE
"GRESHAM"
Liberal Policies Reduced Premiums
EST.ABUSHED 1848
Funds Exceed Fifty Million Dollars
Gresham Life Assurance Society
Gresbam Building
MONTREAL
THE MONETARY TIMES
News of Municipal Finance
General Meeting of Saskatchewan Municipal Bond Holders to be Called— Govern-
ment Again Emphasizes that Obligations of Defaulters Will not be Assumed—
Regina Sinking Fund Earned a Surplus — South Vancouver Conditions Improved
BONDHOLDERS of the town of Humboldt, S&sk., met in
Toronto last week, and passed a resolution requesting the
Dominion Mortgage and Investments Association to call a
meeting of all the holders of Saskatchewan debentures and
Saskatchewan government securities. The action of the
mortgage company is called with a view to considering ways
and means of protecting bondholders' interests in Saskat-
chewan in view of the number of defaults by municipalities
that have taken place. It is felt that it is necessary that all
parties interested in Saskatchewan municipal securities should
get together and discuss some way of dealing with the situ-
ation.
This action, when brought to the attention of the pro-
vincial government, was resented, in that it wa^s interpreted
to be a further eiffort to bring the province to assume the lia-
bilities. Speaking on behalf of the government, Hon. C. A.
Dunning, provincial treasurer, stated; "The government of
Saskatchewan, while willing at all times to assist defaulting
municipalities and thus protect their interests and the in-
terests of those who hold their bonds, will not be driven into
assuming liability for the obligations of defaulting subdivi-
sions of the province.
"Certain financial interests in eastern Canada and the
United States, who are bondholders in one or other of the
few defaulting towns in Saskatchewan, have been using every
influence to force the government of this province to assume
the debts of towns which are unable to pay the interest on
their own debentures. The government has steadily refused
to agree that the whole province should be taxed to pay the
bonds of any individual municipality or the interest on them.
"Several weeks ago one of the financial interests con-
cerned stated in a letter to me that a boycott of Saskatche-
wan securities would be organized in eastern Canada, and
that every means, political and otherwise, would be used to
force the government to yield. This despatch indicates that
the battle is on, and, judging from its contents, wholesale
misrepresentation is one of the weapons to be used. Some
difficulty may result from the campaign," said Mr. Dunning,
"but not enough to force the government to agree to such
an outrage as proposed."
These views are somewhat along the same lines as those
expressed by Hon. George Langley, minister of municipal
affairs, a short time ago, and further emphasize the policy
which has been adopted.
London, Ont. — A tax rate of 38.8 mills has been set by
the council, as compared with 40 mills last year.
Oshawa, Ont.— The tax rate for 1921 will be 40 mills on
the dollar, the highest for some years and an increase "of 2y2
mills over last year.
Winnipeg, Man. — All lands in arrears of taxes for one
year or more will be sold on or after May 15 next, according
to a decision of the finance committee.
Estevan, Sask. — Coupons of the bonds issued by the town
will be paid if presented again, according to John Appleton,
secertary of the Dominion Mortgage and Investments Asso-
ciation, who has been closely in touch with the situation.
Kingston, Ont. — Gross surplus of the city's electrical
plant in 1920, according to the audit of the Hydro-Electric
Commission, was $31,557, or more than 20 per cent., and the
net surplus $19,599, the sum of $11,958 having been placed to
the credit of the reserve account.
Sherbrooke, Que. — The city's budget for 1921 calls for
general expenditures of $374,654. Current expenditures on
waterworks are estima.ted at $91,324, and revenue for the de-
partment at $95,000. The estimated expenditure by the elec-
tric and gas department is $272,353 and revenue $330,550.
Swift Current, Sask.— At a meeting of bondholders in
Toronto this week it was decided to appoint a committee,
with power to employ a solicitor, to take such action as was
deemed advisable to protect the bondholders' interests. ' It
was felt at the meeting that, with proper management and
co-operation, the city could overcome the difficulty without
discredit to itself or the province. The vicinity of Swift Cur-
rent has suffered from four successive bad crop years.
Essex Border Utilities, Ont. — When Riverside and Te-
cumseh are incorporated as towns by act of the Ontario leg-
islature, the township of Sandwich East will sever its rela-
tions with the Essex Utilities Commission. The two baby
municipalities, which at present are part of the township, will
take over the township's financial obligations incurred while
within jurisdiction of the commission. R. C. Maisonville and
Reeve Maurice Renaud, commissioners for Sandwich East,
will cease to serve on the commission after the incorporation
of the new towns has been approved by the legislature.
Regina, Sask.— Total assessment for 1921 is $58,760,740,
compared with $58,132,180 in the previous year. Increases
are shown in the improvements, income and business assess-
ment, but land assessment shows a decrease of about $559,-
000. Exemptions are $15,219,470, as against $15,190,300 in
1920, leaving the taxable assessment as follows: — •
1921. 1920.
Public school supporters . $40,712,780 $40,088,340
Separate school supporters 2,828,490 2,853,540
Oak Bay, B.C. — The district is among those fortunate
municipalities of the province who can report small tax ar-
rears and a sinking fund surplus, in addition to other favor-
able features. Last year's accounts were closed with a sur-
plus of current revenue over current expenditures of $11,295.
The bank overdraft on current account was reduced from
$53,122 to $37,603.
At December 31, 87.34 per cent, of the current year's
taxes were paid and 79.41 per cent, of arrears outstanding at
January 1, 1920, had been collected. Total tax arrears were
$52,025, compared with $89,981 at the end of 1919 and $156,-
376 at the end of 1916.
Sinking funds required amount to $409,751, while the
funds actually on hand are $442,427, a surplus of $32,675, as
compared with a surplus in the previous year of $31,658.
Of the fund $438,212 is invested in Dominion and provincial
bonds and debentures and the rest is cash in the bank.
South Vancouver, B.C After having experienced all the
trials and tribulations which accompany financial embarrass-
ment, the municipality is rapidly regaining its prestige. At
the time the provincial government appointed F. J. Gillespie
commissioner in May, 1918, South Vancouver had not de-
faulted, but everything pointed to a default on account of
the money market, and the over-expenditure that the muni-
cipality has been making in previous years, and from the fact
that single tax had obtained for years. From 1910 to 1914
the assessment had been rushed up from $13,609,203 to $43,-
815,311. This value was certainly inflated, for the property
was never worth that amount of money. The assessment
now is between twenty-four and twenty-five millions, and
taxes are levied on both land and buildings.
Another unfavorable feature before the provincial gov-
ernment commissioner took charge, was the poor collections^
In 1916 the collections were but 35.75 of the levy. In 1920,
however, the result was about 80 per cent. Total tax arrears
at December 31, 1920, including consolidated taxes and ac-
crued interest, amounted to $300,298, which compares with
$550,547 at the end of 1919, and $1,113,877 at the end of 1918.
April 1, 1921
THE MONETARY TIMES
33
C.P.R. BUILDING
TORONTO
nOIJSSERW>ODV>G>MRWy
INVUTMENT BANKCR*
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
INSURANCE
Promptly effected in all its Branches
FIRE, AUTOMOBILE, ACCIDENT, LIABILITY, Etc.
Intelligent Advisorv Service
OSLER, HAMMOND & NANTON
WINNIPEG
Messrs. Harris, Forbes &
Company
Incorporated,
announce
the
removal of
their
Toronto
office to
larger
quarters in
the
('anadian
I'acitic
Railway l>uildin)>.
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur BIdg., WINNIPEG, Canada
Membera of Winnipeg Real Elatate Czchange. Winnipeg Stock EzcKange
c.
H.
BURGESS & CO.
Government and
Municipal Bonds
14
King Street East
Toronto
ACCOUNT BOOKS
I^oosE I^EAF Ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Qufdity, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
Exceptional —
both for safety of principal and surety of
return is this
7% Canadian Industrial Bond
with a bonus of Common Stock payable in New
York funds.
Ask us for full particulars
R. M. HEFFERNAN & CO., Limited
I.M'ESTMEXT BROKERS
HEAD OFFICE : 204 Jackson Building, OTTAWA
THE MONETARY TIMES
Volume 66.
The sum of $96,667 was paid into the sinking fund during
the year, whereas the annual amount required was $73,968.
Loans from the Canadian Bank of Commerce and Lumber-
man's Trust Co. amounted to $529,164, against which there
is cash on hand amounting to $171,326, leavmg a balance of
$357,837. Temporary loans at December 31, 1919, K.mounted
to $673,999, against which there was cash amounting to
$105, It'll. This shows an improvement in the financial condi-
tion for the year 1920 of $211,009.
Regina, Sask. — The city's sinking fund earned a surplus
of $;!5,817 in 1920. After setting aside as a reserve the sum
of $10,000, r.. balance of $25,817 remains to be turned over to
the city. This will be used to reduce the tax rate for this
year, and will be equivalent to a reduction of about two-
thirds of a mill on the 1921 tax levy. The policy of setting
aside a sum each year from the surplus as a reserve was
adopted last year.
According to the annual report of the sinking fund
trustees, which has just been completed by City Treasurer
Snowball, secretary to the tru.stees, and certified by Gladwell
and Wilson, city auditors, the sinking fund has earned £• total
surplus of $110,273, since the present policy of investmerits
was adopted. Of this amount $89,565 has been returned to
the city to be used for current expenditures. The total
amount of money available for investment by the sinking
fund last year was $644,391, which was applied as follows:
Debentures redeemed, $58,084; new investments, $465,964;
accrued interest paid on new investments, $8,372; balance
of surplus earnings for 1919 applied to city general fund,
$27,748. This left a balance of cash on hand and in the bank
at the end of the year amounting to $84,221. Practically all
of this has since been invested.
The average yielding ra.te of the sinking fund investments
in the aggregate is 6.01, but durmg last year, on account of
the attractive securities available, the earning rate for 1920
investments was in the neighborhood of 7 and 7 to 8 per
cent. The report shows that at the end of the year there WR>s
a sum due the sinking fund on account of the 1920 levy,
amounting to $52,681.
Government and Municipal Bond Market
Ontario and Nova Scotia Issues Featured This Week's Activities— York
Township Sells on 6.32 Per Cent. Basis— Bond Houses are Evincing Inter-
est in Irrigation Bonds Following Announcement of Alberta Government's
Policy— Legislation Has Yet to be Passed— Transfer Books of 1918 and
1919 Victory Loans Are Closed for Month on Account of Interest Payments
INTEREST in the government and municipal bond market
centered chiefly around the offerings of Ontario and Nova
Scotia provinces. Outside of these there was very little ac-
tivity. York Township disposed of its securities on a basis
of about 6.32 per cent., as compared with s> 6.40 per cent.
rate when the municipality made a loan in January.
Since the announcement of Premier Stewart, of Alberta,
concerning the guaranteeing of the bonds of the Lethbridge
Northern Irrigation District, bond houses in every part of
Canada have been sending enquiries to the district's office.
Secretary Dunning has stated that Dominion bond houses
are showing a very lively interest. Many of these houses
showed absolutely no interest when tenders were first called
for last .January. Mr. Dunning is of the opinion that there
will be no difficulty in disposing of the securities when the
time comes, a.nd anticipates receiving much better than par
if the interest rate is left at 7 per cent. As soon as legisla-
tion is passed a conference will be held between government
officials and trustees of the Irrigation district to determine
on the class of bonds to be issued. It is probable that the
bonds will be of the same type as previously determined,
namely, 7 per cent., maturing in 30 years.
There was a narrowing down in trading of Victory bonds
as a result of the Easter holidays, and there were slight
price recessions in all but two issues. The department of
finance has given notice that on account interest payments
due May 1, 1921, the transfer books of the 1918 a.nd 1919
Victory loans will be closed from Mai'ch 31 to April 30, in-
clusive, that is, the 1923, 1933, 1924 and 1934 maturities.
Bonds vvhich are received at the department for transfer after
March 31, will not be transferred until after the opening of
the transfer books on May 1.
The recent movement of prices is illustrated by the fol-
lowing figures: —
Control
price.
1922 98
1927 97
1937 98
1923 98
1933 96%
1924 97
1934 93
Last week.
This
week.
High.
Low.
High.
Low.
98%
98
981/2
97%
97%
97
971/2
97
99%
99%
99%
98%
97%
97%
97%
97
98%
98
98%
98%
96 Vz
96
96%
96
95 y*
94%
95
94%
Saskatchewan Municipal Authorizationa
Seven hundred and fifty-one applications by cities, towns,
villages, ruraJ municipalities, school boards and rural tele-
phone companies for permission to make capital expenditures
were authorized by the Saskatchewan Local Government
Board during the calendar year 1920, according to the an-
nual report of the board. The amount of these a'Uthorizations
was $5,783,228.
A total of 796 applications, amounting to $6,519,826 was
made to the board during the year. Thirty-six of these,
amounting to $346,290, were refused; 86 were reduced by a
total of $296,608; and nine, amounting to $93,700, were pend-
ing at the end of the year. The a.uthorizations were dis-
tributed as follows: Cities, $550,280; towns, $353,152; vil-
lages, $107,650; rural municipalities, $86,828; school boards,
$2,460,508; rural telephone companies, $2,224,809. The total
number of authorizations by the board to similar applicants,
in 1919 was 773, amounting to $7,190,937,
Coming Offerings
The following is a list of debentures offered for sale,
particulars of which have been given m this or previous
issues: —
Tenders
, Maturity. close.
20-yea.rs
20-instal
15-instal
20-instaJ. Apr. 4
Various Apr. 4
30-years Apr. 6
20-instal. Apr. 9
15-instal. Apr. 15
20-years Apr. 18
20-instal. Apr. 18
30-instal. Apr. 28
Borrower. Amount. Rate9r.
Belleville, Ont $ 90,000 6
Caledonia Twp., Ont. 50,192 6
Nokomis, Sask 20,000 8
Belle Plaine, Sask... 15,000
Victoria, B.C 244,501.81 6
Cap-de-Madeline, Que. 40,000 6
Craik. S.D, Sask 35,000
Kamsack, Sask 13,400 7
Ste.-Marie-de-Sayabec,
Que 11,600
Vermillion, Alta 27,000 6 1/2 & 7
Roekwood R.M., Man. 70,000 6
Craik S.D., Sask. — Sealed bids will be received until April
9, 1921, on $35,000 20-insta.lment debentures. C. M. Truman,
secretary-treasurer.
April 1, 1921
THE MONETARY TIMES
35
Government Bonds Paying
6% to 6.40%
Dominion Government, Provincial
Government and Municipal Bonds
are desirable purchases to-day.
The Government Bonds yield as
high as 6.40°o — the Municipals as
high as 7/0.
Hence we suggest the purchase of
them by those who have money un-
employed or earning lower interest
rates.
Write and tell us how much you
wish to invest and we will make
you a recommendation.
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
'vicN,
Is The Pulp
and Paper
Industry
Sound ?
If prevailing liquidation in industrial common
stocks has unsettled your belief in the funda-
mental strength of the pulp and paper indus-
try, write now for Investment Items.
The current number discusses clearly and
briefly the present position of the industry
and gives reasons for the necessity of new
industrial financing.
It is not only interesting reading, but will
greatly strengthen your confidence in Cana-
dian industry.
A letter will add your name to our mailing
list.
Royal Securities
^ 'corporation
LIMITED
MONTREAL
TORONTO HAUF.4X ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. Eng.
■=*"■» T'-y ■« '^S^' ^ ^■■•'/ ■V'Y ■v^^/^^^^/'vrw/^^^^r^r^'^^fryf''^/^^-»-^z^^/^-
\V. L. .\lcKI.\NON
DEAN H. PETTES
We Buy and Sel
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Covernmenf and Municipal Bonds
McKINNON BUILDING -:• TORONTO
Telephone Adelaide 3870
Increase the Return
on Your Investments
Send foj our circular describing
Howard Smith Paper Mills
Bonds, which are being offered
at (I very attractive price
R. A. Oaly & Co.
BANK OF TORONTO BUILDING
TORONTO
1™ "
^^■■^^IB^Hi
r.
Viftorv
Bonds
We endeavour by
courtesy, accuracy
and promptitude to
give complete satis-
faction to every
client.
1
IVe buy and
sell all maturities
at the market
We will gladly advise
investors upon pre-
sent market value of
their holdings.
W. A. MACKENi
JIE & CO., Limited
1 Covcrnmenl and Municipal Bonds
1 Corporalion Securities
1 42 KING STREET WEST
■ TORONTO - CANADA
I --•
36
THE MONETARY TIMES
Cap-de-Madeline, Que. — Tenders will be received until
April H, 1921, for the purchase of $40,000 6 per cent, bonds,
dated November 1, 1920, and due 1921-50.
Victoria, B.C. — The city is calling for tenders on an un-
sold balance of bonds amounting to $244,501.81 up to April
4, 1921. The securities bear 6 per cent, interest and mature
from 1921-30 and from 1921-35.
Rockwood R.M., Man. — Tender.s will be received until
April 28, 1921, for the purchase of $70,000 G per cent. 30-in-
stalment good roads debentures, guaranteed by the province
both as to principal and interest. V. W. McFarlane, Stone-
wall, Man.
Sainte-Marie-de-Sayabec, Que. — Tenders will be received
until -April 18, 1921, for the purchase of eight debentures of
$500 each and thirty-eight debentures of $200 each, maturing
September 1, 1940. T. Levesque, secretary-treasurer.
Vermillion, Alia. — Tenders will be received until April
18, 1921, for the purchase of $20,000 (5V2 per cent. 20-instal-
ment fire hall debentures, and $7,000 7 per cent. 20-instal-
ment electric light and power debentures. (See advertise-
ment elsewhere in this issue.)
Saskatchewan. — The following is a^ list of authorizations
granted by the Local Government Board, from March 12 to
19, 1921:—
Schools. — 8 per cent. 20-years annuity — Indian Head,
$50,000; Langenburn, $27,000; Allendale, $6,700; Marquis,
$16,000. 8 per cent. 15-years annuity— Crane Valley, $4,500;
Merrywood, $3,300; Foam L&ke, $19,000. 8 per cent. 10-years
annuity— Eagle Bank, $1,500; Petroffsk, $1,200. 8 per cent.
15-years instalment — Prairie Valley, $5,500; Free Soil, $15,-
000. Altona, $1,200 8 per cent. 10-years instalment; Kim-
ball, $1,000 8 per cent. 7 years annuity; Progress, $600 8 per
cent. 3-years instalment.
Village of Verwood, $1,000 8 per cent. 5-years instal-
ment, for electric light meters.
Bond Sales
Mimico, Ont. — C. H. Burgess and Co. have purchased
.$24,000 6V2 per cent. 30-instalment debentures at a price of
99.50. Another bid of 99.14 was submitted by Wood, Gundy
and Co.
Albert R.M., Man. — Edward Brown and Co. has pur-
chased $50,000 6 per cent. 30-instalment good roads deben-
tures, guaranteed by the province, at a price of 96, which is
on about a 6.38 per cent, basis.
York Township, Ont. — An issue of $200,000 6 per cent.
20-instalment Hydro-electric debentures has been awarded
to the Dominion Securities Corp. at a price of 97.379, which
is on a 6.32 per cent, basis. Other tenders were: —
.Emilius Jarvis & Co 97.27
United Financial Corp., Ltd 97.061
Wood, Gundy and Co 96.87
R. C. Matthews & Co 96.66
Dyment, .Anderson & Co 96.61
National City Co., Ltd 96.57
C. R. Clapp & Co 96.525
A. E. Ames & Co 96.19
Saskatchewan. — The following is a list of debentures re-
ported sold from Alarch 1^ to 19, 1921: —
Schools. — Glenhurst, $2,000 8 per cent. lO-years, Hoosier,
$2,400 8 per cent. 10-years, Haywood, $1,500 8 per cent. 10-
years, Harmonia, $2,500 8 per cent. 15-years; C. C. Cross
and Co. Regina, $25,000 6V2 per cent. 30-years; Canada
Trust Co. Church Hill, $1,200 8 per cent. 10-years; Water-
man-Waterbury Mfg. Co. Peebles, $650 71/2 per cent. 10-
years; C. J. Rosborough.
Rural Telephones. — ^^8 per cent. — Rainton, $1,000 15-years;
C. C. Cross &nd Co.; Gowanbrae, $1,100 14-years; J. Blue,
Kinistino. East Milden, $7,500 15-years; Harris, Read and
Co.
City of Weyburn, $1,200 6'4 per cent. 30-years; Weyburn
"Sinking Fund.
Town of Gravelbourg, $61,500 7 per cent. 30-years; C. N.
McMannas, Moose Jaw.
Nova Scotia.— The province has sold $1,500,000 6 per
cent. 5-year bonds, payable in Canada and New York, to a
syndicate comprising the National City Co., Wood, Gundy
and Co., and E. H. Rollins and Son, of Boston, at a pi'ice of
102.987, which means that for the present the money costs
the province about 5.30 per cent. A number of tenders were
received as follows: —
Payable in United States and Canada
5-year. 10-year.
National City Co., Wood, Gundy & Co., and
E. H. Rollins & Son 102.987 100.644
Brent, No.xon & Co., and G. A. Stimson &
Co 102.761 100.511
Dominion Securities Corp 102.48 100.316
*J. C. Mackintosh & Co., Halsey, Stuart &
Co., Payne, Webber & Co., A. E. Ames
& Co., and J. M. Robinson & Son 101.392 99.764
Harris, Forbes & Co., Inc 101.00
Bank of Nova Scotia, R. A. Daly & Co.,
and W. A. Mackenzie & Co 100.79
Miller & Co., and Brandon, Gordon & Wad-
dell 100.610
Payable in Canada Only
15-year. 20-year.
National City Co., Ltd., Harris, Forbes &
Co., Inc., and Hanson Bros 98.261 98.631
C. H. Burgess & Co., Canadian Debentures
Corp., Mackenzie & Kingman, McLeod,
Young, Weir & Co., and H. M. Bradford 98.013 98.291
Wood, Gundy & Co., and the Eastern Se-
curities Co., Ltd 97.45 97.88
Brent, Noxon & Co., and G. A. Stimson &
Co 97.262 97.081
Bank of Nova Scotia, R. A. D&ly & Co., and
W. A. Mackenzie & Co 97.17 97.17
A. Jarvis & Co 95.76
**J. C. Mackintosh & Co., A. E. Ames &
Co., United Financial Corp., Ltd., R. C.
Matthews & Co., and J. M. Robinson
& Sons 96.843 96.843
Dominion Securities Corp 96.79 96.79
■For a $1,000,000 issue this syndicate offered 101.642 for
5-year bonds and 100.014 for 10-year bonds.
**For a $1,000,000 issue this syndicate bid 97.063 for 15-
year bonds and 97.063 for 20-year bonds.
The highest bid for 10-year bonds payable in the United
.States was on about a 5% per cent, basis, and if the province
had desired to sell securities payable in Canada only, it would
have had to pay about 6.10 per cent, for its money.
Ontario. — A large syndicate, headed by A. E. .Ames and
Co., were awarded $6,000,000 6 per cent. 6-months' treasury
bills, payable in Canada only, at a price of 99.53, which
means that the province pays about 6.98 per cent, for its
money. In addition to this offer, there were four bids for 6
per cent. 10-year bonds, payable in Canada only, as fol-
lows:—
Harris, Forbes and Co., and National City Co., Ltd... 97.77
A.. E. Ames and Co., and syndicate 97.637
G. A. Stimson and Co., and syndicate 97.371
Canada Bond Corporation, and syndicate 97.323
The highest offer for the bonds was on about a 6.20
per cent, basis. There were no offers for one-year treasury
bills.
The successful syndicate is comprised as follows: — A.
E. .Ames and Co., Wood, Gundy and Co., Dominion Securities
Corporation, A. Jarvis and Co., R. C. Matthews and Co.. C.
H. Burgess and Co., United Financial Corporation, Ltd.,
Housser, Wood and Co., W. A. Mackenzie and Co., R. A.
Daly and Co., Canadian Debentures Corporation, Morrow and
Jellett, Canada Trust Co.. Osier and Hammond, McLeod,
Young, Weir and Co., and MacNeill, Graham and Co.
April 1, 1921
THE MONETARY TIMES
$25,000
CITY OF HALIFAX, N.S.
Due July hi, 1953
BONDS
Denominations, $1 ,000
Principal and semi-annual interest pay-
able at Toronto. Montreal, Halifax.
Price: 92.85 and accrued interest
YIELDING 6%
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX, N.S.
Wc Oiler
$100,000
Dominion of Canada
Long Term Bonds
Yielding Over O/D
The Best and most marketable
Security obtainable in Canada.
5X''. Victory Bonds, Due 1934
I application
BOND DEPARTMENT
The Canada Trust Coi*\PANY
14 King Si. E. - - - Toronto
Western Municipal & School
Debentures
TO YIELD ' 2
6%
1\%
THE BOND AND DEBENTURE CORPORATION
OF CANADA, LIMITED
CORRESPONDENCE
INVITED
UNION TRUST BUILDING
WINNIPEG
OLDFIELD,
KIRBY
&
GARDNER 1
INVESTMENT BROKERS |
Branchc
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AND CALGAR^
WINNIPEG
Canadi.tn
Managers
lENT CORPORATIC
)N 01- Canada. Ltd.
I.onilon Office ; ■( Or
cTt Winchester St.. B.C.
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TE have 430 good businesses for sale in
f portion of Alberta. Everything from
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the central
a General
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111
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Alberta
"For the man of vision."
Policies which may be adjusted to meet changed cir-
riimslanres The " Canadian Scries issued only by
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HEAD OFFICE
LONDON. CANADA
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
C.ihle Ad.lre^^s. Torcco. Western In. .ind A.H.C.. .Sth EJition
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H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C. H MACAILAV ,1. I> MCOI.I.S. N'otary Public.
LOUGHEED & TAYLOR, Limited
/;V I'ES TMEX T SEC VRl TIES
210 Eighth Avenue West
CALGARY
ALBERTA
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Imcstmenl Bankers. Fiscal Agents
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826-7-8 ROGERS BUILDING, VANCOUVER,
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MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. .1. W. MAHAN I A W1-;ST.\1A.\
President .Managing Director
X
Waghorn Gwynn & Co., Limited
Stock and Bond Brokers
Insurance, and Real Estate Agents
VANCOUVER
THE MONETARY TIMES
Volume 66.
CORPORATION SECURITIES MARKET
Easter Holidays Result in Curtailment of Speculative Activity
on Canadian Exchanges — Abitibi Cuts Dividend Rate —
Goodyear Tire Also Takes Similar Action
EASTER holi(iays contributed to the curtailment of specula-
tive activity on the Canadian stock exchanges during
the past week, but apart from this there was not vei-y much
desire on the part of the public to participate, while the
movement of prices indicated no appreciable change in the
situation as a whole. Industrials continue to be judged in-
dividually, and this attitude on the part of traders is likely
to last as long as business remains in its present condition.
The news with which the markets have to contend, both
here and in New York, is of a diversified nature. Annual
reports, for instance, which have been and continue to make
their appearance in goodly numbers, are so widely different
in their portrayals. ' This week there are the statements
of Abitibi and Canadian Westinghouse showing large net
earnings and substantial profit and loss balances, while on
the other hand Ames-Holden-McCready reports a loss on
operations and instead of a surplus there is now a debit
balance. In regard to Ames-Holden, however, it is under-
stood that the company is now running its plants at capacity,
and that the leather shoe industry is picking up remark-
ably well.
It is true that speculators are concerned chiefly with
the future, but the cutting of dividends announced by some
companies has somewhat discouraged the hopes of those who
were expecting better results. There has not been a whole-
sale cutting or passing of dividends in Canada, although the
frequent announcements of such a policy by corporations
across the line has to a certain degree been effective here.
This week, announcement was made from New York that
four companies had passed their dividends, and this gave
rise to repoi'ts of uncertainties with regard to other com-
panies.
The most interesting event in this regard, was the cut
by Abitibi from the $6 per share rate to $4. It was not
stated whether this was to be the permanent rate or not,
but there were two points which indicated that the change
may be of a temporary nature only. In the first place it is
believed that the necessity of new financing on terms which
make it necessary to provide liberal sinking funds for the
next few years, together with the uncertainty about the
price of newsprint for the balance of the year, would compel
the board to proceed cautiously at this time in disposing of
the company's money to the shareholders. On the other hand
the president in his annual statement indicates that about
$2,500,000 is needed to complete the extensions to the com-
pany's plants, water powers, etc., which amount will only
be required in moderate monthly amounts over the whole
year, and can be supplied from surplus current earnings.
The dividend is now on a 20 per cent, basis, as compared
with 30 per cent, previously.
Trading during the four days resulted in a turnover of
listed stocks on the Montreal exchange of 25,300 shares, as
compared with 51,343 in the previous five days, while in
Toronto the figure was 6,275, against 10,242. Bonds changed
hands to the extent of $860,810 in Montreal, compared with
$637,461, while the turnover in Toronto was $740,600, as
against $1,155,500 previously.
The Goodyear Tire and Rubber Co. has announced the
passing of the dividend on the preferred stock for the cur-
rent quarter. The stock in question was issued in January,
1920, when the rubber business was at the length of its boom.
Since that time operations by the company have been greatly
reduced, although it is now stated that business is on the
mend. Directors in a circular announcing their action, also
hint that new financing may be necessary. The dividends on
the preferred stock are cumulative, and no dividends can be
paid on common until all dividends on preferred have been
paid in full.
Quebec Bond Offerings
An issue of $1,200,000 7 per cent, first mortgage bonds
is being made by Versailles, Vidricaire and Boulais, Ltd., at
par, in connection with the firm of P. T. Legare Co., Ltd.,
of Quebec City, which is taking over the business of P. T.
Legare, Ltd., distributors' of agricultural implements and
house furnishings. The history of this company goes back
for fifty years to 1871, when the present head of the firm,
P. T. Legare, joined his father in a small business of manu-
facturing agricultural implements and wagons. At the pre-
sent time the business is a most extensive one, covering the
entire province with 25 branches and 1,325 representatives.
Offering of an issue of $200,000 of Western Quebec
Power Co., Ltd., 6V2 per cent, first mortgage sinking fund
bonds is being made by Balfour, White and Co. The bonds,
dated April 1, 1921, and due April 1, 1931, are being offered
at 88.23, to yield 8^,4 per cent, to the purchaser. Principal
and interest is payable in Canada or in New York in New
York funds, at the option of the holdei-. Beginning April
1, 1923, there will be provided an annual sinking fund
equivalent to 3 per cent, of the total bonds outstanding.
The issue is made to complete the purchase of the North
River Electric Co., Ltd., and the Vaudreuil Electric Co., Ltd.,
to carry out certain additions and extensions, and to provide
the company with further working capital. The company is
capitalized at $350,000 of common stock, $50,000 of 7 per
cent, cumulative preferred, and $200,000 of 6V2 per cent,
first mortgage sinking fund bonds.
Bond Issues Approved
Shareholders of the Brompton Pulp and Paper Co., Ltd.,
approved of the proposal of the directors of the enterprise
in respect to the creation of a new issue of $3,000,000 twenty-
year 8 per cent, convertible bonds and passed a by-law
authorizing such action on the part of the board. As previ-
ously announced, the new securities will carry the right of
conversion into the common stock of Brompton company, on
the basis of two shares of no-par value common for each
$100 par value of bonds. The option in this respect will
be good for a period of ten years.
A by-law of the company authorizing the new genei'al
bond issue, whereby the directors may borrow an amount
not exceeding an aggregate of $20,000,000, to be secured by
an issue of general mortgage bonds of the company, has been
UNLISTED SECURITIES
Alta. Pac. Grain. ...com
" *' " ....pref,
Belding, Paul pref
Brantford Roofins
British Amer. Assurance
Burns. P. 1st MtKe. 6's..
Can. Crocker Wheeler pf.
Can. Machinery.. . . com.
6's.
Canada Mortsage
Can. Oil com.
Can. Salt 6's.
Can. Westinghouse
Can. Woollens com.
Cockshutt Plow.7%pref.
CoUingwoodShipb'dg.S's
Crown Life Insurance...
Cuban Can. Sugar.. pref.
Bd
Ask
130
150
78.50
84.50
73
90
8
11
91
99
70
20
24
80
68
72
68
96.75
104
115
35
59
62.50
91
'26'
65
3D
Davies, William 6's
Dom. lron& Steel 5's 1939
Dom. Power pref.
DunlopTire pref.
Eastern Theatres, com.
Ooodyear Tire....7% pfa.
G'elph&Ont. In.(parS50)
Gunns. Limited pref.
Harris Abattoir 6's
Home Bank
Imperial Oil
International Milling.6's
King Edward Hotel.com.
..7's.
Lake Superior Paper. 6's.
Loew's .Montreal . . .com.
Loew's, London. .. .com.
Manufacturers Life
Bid
Ask
92
98
67
70.75
87
89
87
93
10
14
61
90
58
66
89
95
99
102
101
105
90
70
75
75.50
80
92
95
40
5
170
6.50
200
Marconi Wireless -
Massey- Harris
Mattagami Pulp... com.
...pref.
Merchants Fire--
Mexican Nor. Power.. 5's
Morrow Screw 6's
Murray-Kay pfd.
National Life
Neilson. Wm 6's.
North American Pulp ...
North Star Oil pref.
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Riordon. .com. (nevvstk.)
..pref.
R. Simpson pfd.
R'b*ts*n,P L. Screw. com.
Bid
Ask
1
2
95.50
14.50
67.50
72
36
7
11
84
89
62
70
ISO
85
4.25
4.50
3.55
3.65
75
80
92
95
15
16
65.25
67.. 50
77
35
82
Southern Can. Pow.i
..6's.
St. Lawrence Suga
Sterling Bank
Sterling Coal com
Toronto Power. 5's (1924)
Trust* Guar
United Cigar Storescom.
.pref.
Western Assurance
Whalen Pulp com.
■'.... 7% Deb.
April 1, 1921
THE MONETARY TIMES
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Years
to ulel'l
7 to 1%%
Wt specially Recommend these Bonds as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto Bldg. Royal Bank Chambers
EDMONTON CALGARY
The Bond House of British Columbia
WE ARE !N THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C. Victoria, B.C.
Our Service to Investors
SAVE— INVEST
' I ^HE "growth" of savings wisely invested is
■*- frequently the basis of financial independ-
ence. Persons of limited means can now make
such investments through us, safeguarded by our
expert knowledge of financial conditions.
Investing by this method is decidedly remuner-
ative. Ordinary savings can be applied to the
purchase of high-grade Securities, by which the
capital invested is fully secured and a high rate
of interest assured.
Now is a propitious moment to purchase, con-
ditions being decidedly favorable to the small
investor. A letter seeking advice, and marked
" Service to Investors," will receive prompt
attention. Address: —
M. S. WHEELWRIGHT & CO.
Canadian Investment Securities Limited
TRANSPORTATION BLDG.,
I32St.PeterSt. MONTRE.AL 63 Sparks St.
QUEBEC OTTAWA
passed by shareholders. .\ preliminary issue of $3,000,000
was recently disposed of by the company, the money to be
used for repayintr part of the capital expended on the com-
pany's properties during the past few years.
A special meeting of the Canadian Salt Co. shareholders
will be held at Montreal on April 7, for the purpose of
ratifying a by-law authorizintr the issue of general mortKaKe
serial cold bonds of the company, to the amount of $1,000,-
000. The circular accompanyinfr the notice states that of
the proposed issue of $1,000,000 of 7 per cent, twenty-year
bonds, $356,000 will be reserved for the redemption of first
mortgage bonds. It is proposed to sell only $400,000 of the
balance at the present time, the remainder, $244,000, being
reserved to provide funds for e.xtensions and betterments
from time to time. The proceeds of the $400,000, now to ^e
sold, will be used for funding capital expenditures already
made, for providing the money required for certain additions
and improvements, and for increasing working capital.
The Dominion Loose Leaf Co., of Ottawa, has declared
a dividend of 10 per cent, on the common stock of the com-
pany for the year 1920. About a year ago, $150,000 of pre-
ferred stock of the company was sold on the market. The
preferred shares are 8 per cent, cumulative and participate
in dividends with the common shares up to 12 per cent.
Consequently preferred shareliolders will be entitled to an
extra dividend of 2 per cent., so as to equalize their rate
o' dividend on the common.
At an extraordinary p-enera! meeting of the members
of the "Bull River Elect r'c Power Co.. Ltd.," held at Femie,
B.C.. resolutions were passed that the company be wound
up voluntarily, with the appointment of A. J. Moffatt, of
Femie, as liquidator.
FIKE INSURANCE COMPANY OF CANADA
Gross premiums written by the Fire Insurance Co. of
Canada in 1920 amounted to $405,404, showing an increase
of $80,333 over the preceding year. The net business written
amounted to $202,136, showing an increase of 18 per cent.
The expense ratio, including all taxes, was low at 35.43,
as against an average of 40.27 per cent., of all Canadian com-
panies for 1019. On the other hand losses were heavier, the
ratio to premiums being 44.76 per cent., as compared with
an average of 42.65 per cent., for all Canadian companies in
1919.
The balance sheet shows total assets of 467,292, as com-
pared with $373„398 in 1919. Surplus of assets over liabilities
is $30,071, against $24,144 previously.
In his report to shareholders R. Dandurand, president,
states: "Your directors have considered it desirable to pursue
in the last year a conservative policy, in view of the un-
certainties which will naturally follow the conditions of re-
adjustment through which the country is passing. This will
not be departed from — it may mean that our revenue ma.y
not increase as much as it would have otherwise done; but,
for the time being, it is considered the wisest course to fol-
low."
> The Fire Insurasce Co. of Canada was incorporated in
1916 under a Dominion charter, and a Dominion license was
issued in October, 1918. The paid-up capital is now $199,-
000. and there is a reserve fund of $114,933. Other results
as given above indicate that in two years good progress has
been made.
.\t an extraordinary ireneral meetin? of the Colonial
Tru=t Co. a special resolution was passed, namely: "That
the company be wound up voluntarily and that the Bankers'
Trust Co. of Victoria be appointed as liquidators."
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
Kxi-liaiii;f. MmitiTal.l
AbitibiP..4P...
Asbestos Corp..
Sales Open High Low Close
39i 40
Amts-Holden pfd.
Atlantic Sugar
Bell Telephone
Brazilian T.L.& Power
B.C. Fish
Brompton Pulp & P..
Canada Cement
...pfd.
Can. Con
CanadianCar
•■ pfd.
Canadian Gen. Elec...
Can. Iron pfd.
C. P. R
Carriage Fact
Can. Steamship
•■ ■• pfd.l
■• ■■ deb.
•■ ■■ Vot. Trust
Con. IMiningS Smel...l
Del Rys ]
Dom. Canners
Dominion Bridge i
Dom. Coal pfd.
.Iron pfd.
Doi
Gla
pfd.;
steel Corp I 171.5
DominionTextile.
C.oodwins, Ltd..
Howard Smith
• pfd.l
.pfd
.'pfd.
.'.pfd!
Hillcrest
Illinois Tract pfd.
International Coal
Lake of the Woods. . .
Laurentide
LyallCons
Macdonald Co
Montreal Cotton
Montreal Power
Tram
■ ..Deb.
Telegraph...
National Breweries —
Ogilvie Flour Mills....
" pfd.
Penmans
pfd.
Price Bros
Prov. Paper
Quebec Ry. L. H.&P.
Riordan Pulp&P
ShawiniganW.&P ..
St. Maurice
St. Lawrence pfd.
Spanish Ri'
■• pfd.
■• Div.Vou.
Steel Co. of Canada.
■ ■• ■• pfd.
Toronto Ry
Tucltetts
Wayagamack P. &P.
Wabasso Cotton
Winnipeg Ry
Woods -Mfg. Co.... pfd.
Banks
Commerce
Hamilton
Hochelaga
Merchants
Molsons
Montreal
Natlonale
Nova Scotia
Royal
Standard
Union
Bonds
.\shestos Corp
Bell Telephone Co..
Can. Car
Can. Cement
Can. Cottons
Can. Rubber.
Cedars Rapids Mfg.
City Mont.Dec.S's, 1922
■■ May6's.l923
• Sept.6's.l923
Dom. Can.W. Loan. 1925
1931
1937
Victory Bonds, 1924
1934
1922
1927
1937.
1923
1933
113U.S
6803
79902
3472B
lOl.iSo
S767I
39207
«04H0
32li1,S
84S26
32J
66i
112i
42i ; 45 '(
8Sj 1 88}
2Si( I 27
108 I 108
MONTREAL-CoHttnued.
Dom. Cottor
Dom. Coal. .
Dom. Iron . .
Steel.
Don
Dom. TeNtile
Lake of Woods
.VIont. Power
National Breweries .
Ogilvie Flour
Penmans
Price Bros
Quebec Ry.L.H.&P.,
Scotia
Sherwin-Williams...
Steele of Can
V\'est Kootenay
Wabasso Cotton
NV'ayagamack P. & P. .
Winnipeg Elec
Sales Open High Low Close
9lj
T<»KO.\'TO-ElgIit days Ended Mar. .tOfli.
Atlantic Sugar.
Abitibi
Barcelona
Bell Telephone
Canada Steamship.
DuUitli
Lake of Wood.,
Loco ,
:kay Companies. .
Sates Open High Low Close
.pfd.
pfd/
pfd.,
Russell ..
Salesbook pfd.|
•yer-Massey I
■ ...pfd.l
;lters
Spanish River j
...pfd.
Toronto Ry
Twin City
Winnipeg Elec.
Banks
liOiiii and Trust
Col. Inv
Can. Land
Don
. Per
. S- Can
. Trust
Toninto .Mtg
jnto (Jen. Trusts.
Bond).
. liread
.SS
Osilvie
Rio. Jan. T.. L. & P..
Paulo
Steel of Can
I36j
18.00
87.i
2Bi
lU4i
59J
TOBONTO— Continued
War Loans
Sales Open High Low Close
Dom. Can.W.Loan. 19251 8800
1931, 7200
1937 ,33200
Victory Loan 1922
1923
1927
1937
1933
" 1924
1934
76800
52800
17400
j 65800
100500
734,50
166450
WlIKNIPE«-KlKlH days rnded .Mar. 2«lli.
Victory Loan 1922..
■• 1923..
•' 1924..
1927..
■■ 1937..
!! '.'. '^^^••
War Loan 1925 ....
■■ I93I ...
" 1937 . . . .
Gt. West Perm
Standard Trusts . .
Union Bank
Western Grocers .
Sales Open I High Low [ Clo
16850 98 J 9Si
14950
2000
57S0
943
95
92|
' NEW YORK— >
Week
i;ndrd
Mar.
■smit.
Stocks
Sales
5700
Open
High
114i
Low
112
Close
Canadian Pacific
113i
I14J
Nova Scotia S. & Coal.
Oranby Consolidated . -
Bonds
Dom. of Can. 5% 1921
5J% 1921
5% 1926
Si% 1929
5% 1931
Ontario Silver .Mining.
400
100
14000
1 13000
51000
92000
65000
n
38
19i
993
93
89
33J
19
991
991
91
9lJ
88
38
995
99;
88*
_LOVUON. Kng.— Eight days ended Mar. VUh.
Uov't. •( Miin.
Alberta 4% deb. 1938..
B.C. 3%
Canada.. .3i% 193050..
.3% Reg...
,. 4% 1940-60.
. . 4i% 1920-25
Calgary 5% deb..
Edmonton 5% bds.23-53 .
5% debs...
Lethbridge44fcdebs.
Nfld.SKbds
Montreal 4j% Reg...
4% 194S..50.
Quebec 4%. 1888
•■ 3% bds
Sask-wan4i%
Saskatoon 5%
Toronto 4% bds
3j% 1929...
r 4% cons. '50-2 ■
Victoria 4% cons...
3% cons..
3i% 1923..
3j% 1929-49 61
.5i%cons.. I 92
peg 4i% 1943-63..! 8I§
Kallnays
Can. Nor. 4% deb
4% cons. deb. I
Pac.4% deb.:
Can. Pac : '
4% deb.
4% pfd.,
G.T.P. Br. 4% bd 1939.
G.T.P,4%deb
G.T.P, 4% 1955
Trunk... 4% guar.
Trunk5% 1st. pfd..
Trunk 5% 2nd pfd..
Or. Trunk 4% 3rd pfd..'
Trunk 4% cons
Tr. West. 5% deb...
Ont.& Quebec 5% deb.
P. Gt. East.4Wdeb. '421 .
Ind.. Fin., Etc.
High Low Close
7li
923
s4
625
82J
m
904
85*
62i
66*
84i
61:
91
81*
Can. Cen
Ca
6% bds
. Care'*^ bds....
. West Lumber :
. C.e
. Ele
72i
145*
66}
623
68i
Wi
42i
,30i
12i
6I|
97a
57:1
128*
SiKn
■inigan Water. . . . ! .
into Pow. 4*% deb,
Pow. 4J% gr. deb.l.
Bk. of Commerce!.
Bank Montreal 1.
42i
30*
I2J
624
.573
1284
MS*
593
41*
304
Hi
6li
April 1, 1921
THE MONETARY TIMES
WEYBURN SECURITY BANK
The Weyburn Security Bank has the distinction of being
the youngest and smallest Canadian chartered bank, but not-
withstanding, its value to the country is not to be discounted.
It has some twenty-four branches, all of which are in Sas-
katchewan, and in view of the concentration of its efforts in
this one province it is able to render a more valuable ser-
vice than otherwise.
Last year profits were reduced from $62,220 to $57,742,
while the balance sheet also reflects the change in conditions,
which particularly affected the west. The usual 7 per cent,
dividends were paid and other necessary provisions made.
Nothing was transferred to reserve, however, and the bal-
ance carried forwaid stood at $14,306, compared with $8,.54.i
at the end of the previous year.
The following figures show the principal changes which
occurred during the year, and also gave an idea of the pro-
gress made by the bank since its inception: —
1920.
Total assets $4,009,163
Current loans 1,964,428
Liquid assets 1,584,47(5
Capital paid-up 524,560
Resen'e 225,000
Deposits 2,761,866
Profits 57,742
Circulation 430,490
1919. 1911.
$4,.')88,163 $1,009,995
1,912.027 684,48^
2.270,003 248,838
478,661 301,300
225,000 15,000
3.411,030 503.429
62,220 26,682
418,960 235,8.55
WEEKLY BANK CLEARINGS
The following are the Bank Clearings for the week ended
March 24, 1921, compared with the corresponding week last
year:—
Week ended Week ended
Mar. 24, '21. Mar. 25, '20. Changes.
Montreal $100,802,1.52 $121,.5.56,498 — $20,7.54,34(;
Toronto 94,309,284 96,115,240 — 1,805,956
Winnipeg 36,674,955 42,274,150 — 5,599,195
Vancouver 12,621,492 18,401,955 — 5,780,463
Ottawa 6,621,687 8,170,430 — 1,548,743
Calgary 6,121,4'26 8,380,117 — 2,2.58,691
Hamilton 5,486,086 6,630,091 — 1,144,005
Quebec 5,927,410 5,864,998 -f 62,412
Edmonton 4,294,657 6,184,947 — 1,890,290
Halifax 2,865,241 3,839,681 — 974,440
London 2,809,283 3,423,271 — 613,988
Regina 3,316,556 3,994,017 — 677,461
St. John 2,687,790 3,173,298 — 485,508
Victoria 2,697,380 2,398,980 -f 298,400
Saskatoon 1,816,925 2,044,231 — 227,306
Moose Jaw 1,284,878 1,610,519 — 325,641
Brantford 1,136,456 1,251,376 — 114,920
Brandon 648,457 682,032 — 33,575
Fort William 864,980 869,797 — 4,817
Lethbridge 526,186 751,190 — 225,004
Medicine Hat 360,987 439,091 — 78,104
New Westminster 484,598 886,358 — 401,760
Peterboro 821,970 903,913 — 81,943
Sherbrooke 1,035,454 1,001,365 + 34,089
Kitchener 928,553 1,175,370 — 246,817
Windsor 2,735,048 2,996,785 — 261,737
Prince Albert 306,087 481,505 — 175,418
Totals $300,185,978 $345,501,205 — $45,315,227
Moncton 1,178,264
QUEBEC HAS BENEFITED BY BOARD OF TRADE
At the annual meeting of the Quebec board of trade
recently, John T. Ross, retiring president, reviewed the
industrial development of the city, and attributed many of
the benefits which have accrued to the commercial life of
the community to the efforts of the board.
Referring to the business in the local port, Mr. Ross
stated that notwithstanding the splendid elevator and dock
facilities, and although Quebec was 214 miles closer to the
prairie grain fields than before the construction of the Trans-
continental railway, no grain has been exported from Quebec.
This was explained by the fact that the freight rate to
Quebec and Montreal have been fixed at such a high figure
that it costs four cents per bu.shel less to send grain from
the Canadian west via Buffalo to New York than to send it
to Quebec. In 1916, the management of the government
railways, after much consideration, made a freight rate of
six cents per bushel for carrying export wheat from Arm-
strong on the Transcontinental Railway to Quebec. This
had immediate effect and quite a number of steamers were
loaded here that year with grain. The special rate was soon
cancelled with the result that last year 53,000,000 bushels
of Canadian grain has been exported via the States.
Reference was also made by Mr. Ross to the completion
of the Quebec bridge and the resumption of the fast line of
steamers to Quebec by the C.P.R. He also called attention
to the groat prospects for the province and the city in the
development of the north country and forecasted that with
the new pulp development and the readjustment of freight
rates Quebec would become a great distributing centre.
PROVIDENT ASSURANCE COMPANY
The annual meeting of the shareholders of the Provident
Assurance Company was held in Montreal on March 14th. In
presenting the annual report J. C. Gag-ie. managing director,
dealt at length on the present condition of the insurance busi-
ness and the many i)ioblems that have arisen and which have
been dealt with by insurance director.-; and association execu-
tives. Mr. Gagne brought to the attention of the meeting the
steady progress in the company's business, not\\nthstanding the
increased competition due to numerous foreign companies en-
tering the Canadian field. The Provident's premium income for
1921 amounted to $543,373. The company now has powers for
ti'ansacting fire insurance.
>VANT HIGHER TELEPHONE RATE
Increases in rates charged by the Manitoba government
telephone system of from 30 to 48 per cent., effective April 1,
are sought in an application which has been filed with the pub-
lic utilities commissioner. It is estimated that the revised tar-
iffs would produce an additional $800,000 of revenue, but would
still fall short by $150,000 from the estimated expenditures for
the current year. Increased cost of operation and the neces-
sity for expensive extensions to the system are given in expla-
nation of the application.
Balfour. White and Co., of Montreal, have opened an
oflice in Toronto at 6 Jordan Street, under the management
of S. F. Hayes. This house has specialized in unlisted securi-
ties, and a department is also being organized to take care
of the selling of bonds.
WANTED
The following are the shipments of ore from Cobalt
Station for the week ended March 24th: —
La Rose Mine, 65,970. The total since January 1 is
1,963,226 pounds, or 981.6 tons.
Two Actuarial Assistants, Department of Insurance,
Ottawa; initial salary $1,440 per annum plus bonus provided
by law. Apply Secretary, Civil Service Commission,
Ottawa. 515
THE MONETARY TIMES
Volume 66.
Corporation Finance
Abitibi Net Earnings Show Large Increase — Ames-Holden-McCready Had Deficit Last
Year— Profits of Holt Renfrew Fell Sharply in 1920— Canadian Westinghouse Enjoyed
a Good Year— Canadian Pacific Railway Operating Expenses Were Lower in February
Oakoal Company of Canada, Ltd. — The company, which
was organized about two years ago, is in the hands of the
liquidator. The liquidator, E. R. C. Clarkson, is issuing a
statement to the shareholders, showing the company has
only $183,916 worth of assets to meet liabilities of $582,262.
The liabilities are divided as follows: — To trade creditors,
$121,652, of which $14,609 is secured and $5,498 ranks as pre-
ferred, the balance of $455,610 being due the shareholders.
Dominjon Linens, Ltd. — Net profit, before providing for
depreciation, etc., was $58,872, compared with $76,190 in
1919; $71,142 in 1918, and $50,578 in 1917. Out of the
year's profits the sum of $19,320 was allowed for deprecia-
tion on plant, machinery and equipment, practically un-
changed from 1919. Preferred dividends were paid amount-
ing to $24,500, and a bonus of 5 per cent, on common stock
amounting to $10,000. After reserving $5,000 for Federal
taxes for 1919 there remained $35,169 at credit of profit and
loss, compared with $49,594.
Although there is a considei-able increase in inventories,
there has been a decrease in bank loans. Inventories stand
at $291,496, compared with $175,926. Bank loans have been
reduced from $50,200 to $30,000. Accounts and bills receiv-
able, on the other hand, have declined from $96,500 to $38,-
366, while accounts payable have risen from $10,484 to
$64,308.
Canadian Westinghouse Co., Ltd. — Operations of the
company pi'oved to be highly satisfactory in 1920, earnings
for the year amounting to $1,251,080, compared with $1,-
416,205 in 1919. The sum of $225,000 was written off for
general depreciation, and a reserve of $110,000 created for
the payment of Dominion taxes for 1920, leaving net profits
of $916,080, compared with $600,936 for 1919. From the
year's profits, dividends at the rate of 7 per cent, per annum,
and an extra dividend of 2 per cent, were paid, amounting to
$615,524, leaving a balance of $300,555 carried forward to
profit and loss, which account shows as of December 31, 1920,
a surplus of $2,114,828, exclusive of all reserves. '
For the purpose of securing additional working capital,
made necessary by the increased business and activities of
the company, the outstanding capital stock was increased
from $6,229,400 to $7,417,900 by the issuance of 11,885 new
shares. These were subscribed at par by the shai-eholders
of record June 30, and payments were completed October 1.
Canadian Northwest Land Co.. Ltd. — The sales of the
company for the year 1920 amounted to 23,762 acres, for
which the sum of $418,251 was obtained, as against sales in
1919 of 48,352 acres, from which an aggregate of $773,765
was derived. The sales in the year decreased by 24,589
acres, and the revenue of the company by $355,513. The
average price obtained in 1920 was $17.60 per acre, com-
pared with $16.02 per acre in 1919, an increase of $1.58.
There were no townsite sales during the year, but, in any
event, the liquidation of the company's townsite holdings is
fast approaching completion.
The amount of the original purchase by the English
company was 2,200,000 acres. Of this total there was taken
over by the Canadian company, as at the 31st of December,
1893, 1,928,318 acres. On the 31st of December, 1920, the
unsold lands amounted to 180,552 acres. The balance of
principal outstanding on contracts for farm lands at 31st
December last amounted to $2,572,470, all bearing interest.
Following the custom adopted by the directors, the
total amount of the past year's farm land sales has been
transferred to the profit and loss account, which now stands
at $3,141,707, an increase in the year of $98,593. A further
distribution on realization of assets amounting to $5 per
share was paid to the shareholders in February last. ."Vs
each payment of this kind is made the assets of the com-
pany are proportionately depleted, and in consequence these
payments cannot in any way be regarded as dividends.
Canadian Pacific Railway. — TraflRc earnings of the rail-
way in February showed a decline from February a year
ago, but, for the first time during this or last year, operat-
ing expenses of the big enterprise showed a reduction also,
a reduction greater than that in gross earnings, so that the
result of the month's work was a gain in net earnings. Gross
for the month amounted to $12,768,986, expenses to $11,-
955,594, and net to $813,391, the last-named showing an in-
crease of $99,518 over February, 1920.
In February last year, gross earnings of the railroad
showed an increase of $2,492,936, with expenses nearly
$300,000 higher in comparison with February, 1919. In the
past February gross earnings were down $788,116, the first
decline to be recorded this or last year, and expenses were
down about $100,000 more. The decline in gross from last
year's figures compares with the largest increase last year
over the preceding year, amounting to $6,503,979 in October,
in which month also expenses showed as increase of $4,-
150,939.
Over the past 14 years, February earnings are exceeded
in that month only once, that being in 1920; but net earnings
have been exceeded every year except in 1920, 1909, and
1908. The best February net was made in 1913, when it was
$2,520,070. In January, for every dollar received by the com-
pany, 95 cents was paid out in operating expenses; in Febru-
ary the expense was reduced to 93.7 cents.
Holt Renfrew and Co., Ltd. — A sharp falling, off in earn-
ings is shown in the annual statement of the company for
the year ended January 31 last. Profits from operations
after deducting general selling expenses, amounted to $171,-
592, down fi'om $403,592 in the previous annual statement.
After all charges including a full year's preferred dividends
as against a half-year charged up in the 1920 report, net
earnings were $9,161 as compared with $273,973 a year ago
and a surplus of $173,973 after adustment. The profit and
loss balance is now $183,135.
Outstanding changes in the balance sheet of the two
years include a reduction of $128,368 in inventories of skins,
manufactured furs, etc., shown, according to the statement,
"at cost after deduction of reserves approved by the man-
aging director." These stocks are carried at $1,440,591 in
the 1920-21 accounts. Bank loans as at January 31 last
were $850,000, compared with $580,000 in the preceding state-
ment, although an item of $34,324 shown in the latter under
the heading "sundry loans" finds no counterpart in the re-
port of last year. The position as to working capital under-
went some impairment in the twelve months, the total of
$850,265, as at January 31, 1921, compared with $1,171,487
a year ago.
Riordon Co.. Ltd. — Contrary to the custom of former
years, the financial statement of the Riordon Pulp and Paper
Co. will not go forward with the notices calling the share-
holders' meeting for April 21 next, the change being due to
the fact that the operating company's fiscal year does not
end until June 30, next, the business of the older concern
having been taken over at that date in 1920.
There were made available for publication, however, the
figures showing the combined earnings of the Riordon Pulp
and Paner Co. for the six months ended June 30, last, and
those of the now operating company from that date to De-
cember 31, 1920. These, according to official information,
amounted* to $4,642,630, from which there was written off
April 1, 1921
THE MONETARY TIMES
BANK OF HAMILTON
49th ANNUAL STATEMENT
H. S. AMBKOSE
W. E. PHIN
.1 TrKMUI.I,
LIABILITIES
To the Public:
Notes iif the Bank in Cliculiitiiin $
Deposits not lieurlne interest $17.9lF6.'Jlll.l)8
Deposits bearing interest, including interest
accrued to date of statement 50.528.661.00
28th FEBRUARY, 1921
BOARD OF DIRECTORS
.SIK JOHN HENllKlE. K C .MC. (V.O.. I'rcsidenl
CYRUS A. BIRCE. Vice- President
C. C. WALTON
I, PITBI.AKO. K.r.
\V. A. WOOD
ROBT IIORSON
W. P. RII.EY
A. V VDlNt;
Baiancfs due to otllcr Banlis in Ciinada
Balances due to Banlis and Banl<ing Correspondents in
the rnlled Kingdom
Balances due to Banks and Banking Correspondents
elsewliere
.Vcceptances under Letters of Credit
7.270.56
0.726.00
To the Shareholders:
Capital Stock p.iid in
Reserve Fund
Balance of Profits carried forward
Dividend Xo. 127. payable 1st March. 1921
Former Dividends unpaid
75.186.986.65
4.998.220.00
4.849.110.00
139.2M.95
174.275.27
646.63
J. P. BELL. General Manager
F. E. KILVERT, Western Superintendent
ASSETS
Cold and Current Coin
30 Dominion Government Notes
Deposit In Central (Jold Rcser\i'»
Notes of other Banks
Cheques on other Banks -
)8 Balances due by other Banks in Canada
Balances due by Banks and Banking Correspondents In
the United Kingdom
Balances due by Banks and Banking Correspondents
elsewhere ,,..
Dominion and Provincial Governiuent Securities, not
exceeding m^irket value
Canadian Municipal and British. Foreign and Colonial
Public Securities
Railway and other Bonds. Debentures and Stocks, not
exceeding market value
Call and Short Loans (not exceeding thirty days) in
Canada, on Bonds. Stocks, etc
Other Current Loans and Discounts In Canada (less
rebate of interest)
Real Estate other than Bank Premises
Overdue Debts, estimated loss provided for
Bank Premises, at not more than cost, less amounts
written off
Other Assets not Included In the foregoing
Deposit with the Minister of Finance for the purposes
of the Circulation Fund
Liabilities of Customers under Letters of Credit as per
contra
924,381.40
<. 198.111. 00
.wo.oon.nn
filS.O.iS.OO
.'.7lll.ltt6 7<
16'*, 1
PROFIT AND LOSS ACCOUNT
Balance at credit of Profit and Loss Account. 2.stb February. 1920 -
Profits for twelve montlis ended 28tli February. 1921. after deducting charges of management, Interest
on current discounts, and making i)rovlslon for bad and doubtful debts - —
Premium on New Stock . .
sposed of as follows.
Quarterly Dividends at rate of 12 per cent, per annum
Two bonuses of ^^ of 1 per cent, each
Total distribution to Shareholders of 13 per cent, for the ye
Pension Fund. Annual Assessment
r Dominion (Jovernnient Taxes _
ansferred to Reserve Fund— From Current Profits ..
From Prenduni on New Stork
of Prollts
■d fo
W51. 156.29
47.412.45
598,568.74
20.434.32
65,000.00
RESERVE FUND
nee 28th February. 1920
lium on New Stock
sferred from Profits
i 4.200.000.00
499.110.00
150.000.00
lOHN S llENDRIK.
AUDITORS' REPORT
provisions of siib-sectlons 19 and 20 of Seition 56 of the Bank Ait. 1913. we report to the Shareholders ;
In accordance with tl:
We have audited the above Balance Sheet and compared it with tl:
from the Branches. We have obtained all the information and explanat
of the Bank which have come under our liotlce have been within the pow
follows :
books and vouibers at Head Office and with the certified returns
i that we have required, and are of the opinion that the transactions
..J of the Bank.
becked the cash, and verified tlie securities representing the Investments of the Bank, at Its Chief Office and principal Branches
at a date other than that of the verlftcation at the Chief Office on the 2Sth February. 1921. and found that they were In agreement with the
entries In the books of the Bank relating thereto. ■ , t> i
In our opinion the Balance Sheet Is proiierly drawn up so as to exhibit a true and correct view of the jtate of the afTairs of the Bank
according to the best of our information and the explanations given to i
, and as shown by the books of the Bank.
C. S. SCOTT. F.C.A.,
of C. S. Scott & Co.
mil .M.uvh. 1921,
THE MONETARY TIMES
for depreciation, depletion and other reserves, a total of
$958,042, leaving net earnings available for interest charges
at $3,684,588.
After meeting interest charges, amounting to $614,213,
there remained a balance available for application to divi-
dends amounting to $3,070,375. From this was deducted
$480,000 for dividends on the outstanding preferred shares
in the hands of the public, with $525,000 distributed among
holders of the common securities, leaving a combined net
surplus for the year after all charges of $1,965,385. The
earnings figures detailed above do not take into account the
profits accruing to the Riordon Company from the operation
of its subsidiary, the Gatineau Co., which produced in the
twelve monthly period in excess of 100,000,000 feet of pine
lumber, and showed net earnings, after interest charges, of
more than $400,000.
Ames-Holden-McCready, Ltd. — As the result of the con-
ditions which prevailed in the boot and shoe industry, the
company resorted to the drastic policy of completely shutting
down the leather footwear factories during the greater part
of 1920. Operations were confined chiefly during the year
to the manufacturing of rubber footwear, the year's gross
sales in 1920 being $6,614,552, against $6,658,263 for the
full twelve months' period preceding. After deducting manu-
facturing and selling costs and allowing for depreciation,
but before taking into consideration fixed and other charges,
the loss on the year's operations amounted to $110,501
against a profit of $602,099 for the eight months covered in
the previous statement and $632,764 for the entire 1918-19
period.
All deductions made, the net loss in 1920, after three
quarterly dividends on the preferred stock was paid, the
deficit for the year totalled $639,836, against a surplus of
$176,150 in the previous statement and $323,322 in 1918-19.
Owing to the radical changes effected in the leather foot-
wear industry, the company was compelled thoroughly to
survey its position as to inventories^ it having been necessary
to absorb the sum of $822,768, thereby converting a credit
balance standing to profit and loss account, as at December
31, 1919, of nearly a million dollars into a debit one of $470,-
250 as at the same date last year.
A comparison of the balance sheets of two periods shows
that the position as to working capital underwent extensive
impairment in the year, being reduced to $551,513, a decline
in the year of approximately $2,000,000. Among the current
assets, cash was down by almost $37,000, the 1920 figures
standing at $25,566, while accounts receivable fell ofl' by ap-
proximately $350,000 to $399,888. Holdings of stock in as-
sociated companies and other sundry investments are shown
in the 1920 statements at $43,530 compared with $18,770 a
year ago. Inventories were lower by upwards of $600,000 at
the end of 1920, aggregating $3,396,824 against over $4,000,-
000 in 1919. Bank loans and bills payable grouped together
in the 1920 report are given at a total of $2,791,185 com-
pared with $1,604,761.
Abitibi Power and Paper Co., Ltd.— Operations of the
company in 1920 resulted in net earnings applicable to the
outstanding common stock amounting to $3,613,592, as com-
pared with $801,730 in the 1919 report, and $441,202 earned
in 1918. This showing is equal to $14.45 per share earned on
the issued no-par-value common shares, which would equal
about 72 per cent, on the old capitalization. A year ago
earnings equalled 16 per cent, on the old common stock issue,
and 8.82 per cent, in 1918. Receipts in last year reached
$10,580,142, compared with $6,029,353 in 1919, and $5,650,264
in 1918. After expenses there was available for interest,
depre'ciation, taxes and dividends, etc., a balance of $5,043,-
133, against $2,125,717 in 1919, and $1,643,653 in 1918. In
1920, dividends paid at the rate of $6 per share on the .com-
mon stock, took up $1,500,000 against $300,000 on the old
stock in 1919.
Turning to the balance sheet shows that if liabilities on
construction are taken into account, the net woi-king capital
amounts to only $266,000. ».<: against $1,369,439 in 1919.
Total assets are shown at $25,121,681, compared with $17,-
097,762. Principal changes are as follows: —
1920. 1919. 1918.
Property $19,870,405 $13,820,554 $13,224,203
Investments 685,503 463,150 483,687
Inventory 3,273,869 1,944,769 1,877,489
Funded debt 8,107,500 6,160,600 5,768,200
Construction liability . 1,272,906 147,451 523,008
Bank loans 850,000 250,000 1,068,000
Reserve 2,738,303 1,995,650 1,489,237
Surplus 3,688,571 1,574,979 1,073,249
The president, F. H. Anson, refers in his report to the
issuing of $4,000,000 bonds, but this is not reflected in the
statement. The money was used to reimburse the treasury
for expenditures made on capital account, and to provide
working capital. The increased capacity of the mills of the
company has necessitated the carrying of increased in-
ventories, not only of logs but of all other supplies, with the
result that a corresponding increase in working capital is
required.
RECENT FIRES
Belleville, Ont. — March 23 — Fire broke out at the home
of Mrs. Ivey Wooler. Loss partially covered by insurance.
Blackie, Alta.— March 23— The Blackie Trading Co., the
Long Fee Chinese Cafe and the Blackie Hardware Co. were
destroyed by fire. The loss is $72,000 with insurance of
$40,000.
Capreol, Ont. — March 28 — A large part of the Yonge
St. business section was damaged by fire. The total loss is
estimated a-t $60,000.
Coatsworth, Ont. — March 27 — A fire broke out in the
grocery store belonging to A. C. Martin and damaged sev-
eral adjoining buildings. The loss is $20,000, partly covered
by insurance.
Cobden, Ont. — March 23 — The grocery and confectionery
store of Robert Cook on Main St. was damaged by fire. The
loss is estimated at $6,000, partly covered by insurance.
Eastview, Ont. — A fire broke out in the living rooms
occupied by C. LaChapelle, over his grocery store, corner of
Overton and Marier Streets. The loss is $5,000.
Esterhazy, Sask. — March 16 — A fire destroyed the home
of S. J. Bartok. The loss is estimated at $4,000.
Fredericton, N.B. — March 20 — Dibblee's drug store was
damaged to the extent of $1,000, when a fire originated from
an electric stove.
March 25 — The lumber mill at Manzer's Siding, owned
and operated by Howard Dunphy, of Nashwaak Village, was
damaged by fire.
Hamilton, Ont. — Ma-rch 25 — Spontaneous combustion is
believed to be the cause of a fire which did about $50,000
damage to the warehouse and stock of the F. F. Dalley Co..
Ltd., Hughson St. North.
March 29 — A gasoline torch was the cause of a fire
which resulted in a loss of $500 to the East End shoe repair
shop, 662 King St. East.
Moncton, N.B. — March 25 — The C.N.R. round house w&s
destroyed by fire. The loss is $5,000.
March 28 — The warehouse and machine shops of the
Recoi'd Foundry and Machine Co. were destroyed by fire.
The total loss is estimated at $80,000, partly covered by in-
surance.
Montreal, Que. — March 28 — The St. Andrew's Curling
Club building, 1 St. Matthew's St., was damaged by fire.
Ottawa, Ont. — March 26 — An explosion of flour-dust over
some bake-ovens was the cause of a fire which destroyed the
bake shops and store houses of the Slinn Bread Co., Ltd., 458
Catherine St. The damage is estimated at $100,000.
Perth, Ont. — March 13 — A fire damaged the millinery
department of dry goods store of H. M. Shaw. Loss, $1,500.
St. Johns, Que. — March 24 — A fire broke out in the sec-
ond floor of the Belding P&ul Corticelli, Ltd., premises on
Richelieu St.
yrm.tSHKTJ EVESV FulOAV
The Monetary Times
Printing Company
of Canada. Limited
"The Canadian Engineer"
Trade Review and Insurance Chronicle
of Canada
Established 186";
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
Dominion Companies' Powers to Do Business
Charters Now Effective in all Parts of Canada— Provinces May However
Regulate Business, Collect Taxes, and Require Information— Provincial
Control of Insurance and Other Kinds of Business Not Affected
ACCORDING to the decision of the Privy Council of Great
Britain in the company licensing cases, reported in The
Monetary Times of March 4, a Dominion charter gives a com-
pany the right to do business in all parts of Canada. As the
provinces, however, have, under the British North America
Act, the power to control property and civil rights, and can,
in fact, regulate most lines of business, a company with a
Dominion charter may find it necessary to conform to pro-
vincial regulations before it will be permitted to do business.
This is especially the case in the insurance, loan, trust and
liquor businesses, as almost every province has established
some kind of control in these fields.
Practically every province has a depai'tment of insur-
ance, which requires every company to register and secure
a license. This is true also of companies incorporated by the
province itself, as the certificate of incorporation is regarded
as something quite apart from the process of registering
in the department concerned and conforming to its regula-
tions. The decision just reached makes it unnecessary for a
Dominion company to secure recognition o,? ii eom!<any by a
province, but it will none the less have to obey the laws apd
regulations governing the line of business in which it is
engaged. One of the provincial superintendents of insurance,
discussing the decision, says: "The rights we possess are, in
my view, to tax Dominion companies, to compel them to
register for the purpose of supplying information, to im-
pose penalties for failure to observe provincial laws, and to
subject them to laws of general application, such as a bona
tide law of moi-tmain or laws dealing with the form of con-
tracts. These rights exist, I think, as against Dominion,
foreign and provincial companies."
The Insurance Field
The Ontario superintendent of insurance, V. Evan Gray,
comments as follows upon the judgment: —
"The judgment in general seems to confimi and
strengthen provincial jurisdiction in insurance matters,
especially when it is read in connection with the judgment
of the Privy Council in the insurance case of 1916, and the
only conclusion I can form is that the pro\ince may continue
to enact valid and binding legislation of a general character
in reference to the making of contracts of insurance within
the province, and make the same equally binding upon Do-
minion licensed companies as upon other insurers. The state-
ments of the judgment quoted, which maintain the provincial
authority as to contracts and taxation and mortmain, seem
to be ample authority for this view. The confirmation of the
provisions of the Ontario Mortmain Act seems to provide
any fui^her evidence required to indicate the complete lia-
bility of Dominion licensed insurance companies to comply
with the general provisions of the provincial acts relating to
contracts of insurance."
Regarding the insui'ance powers now exercised by the
provinces, Mr. Gray expresses his personal opinion as
follows: —
"In summary, from the standpoint of jurisdiction in in-
surance matters only, the present judgment of the Privy
Council does, in my opinion, confirm and strengthen provincial
jurisdiction, and it does not derogate in any important par-
ticular from the control or authority which the provincial
legislature may exercise over all persons or corporations
carrying on the business of insurance within the province
so long as that authority does not discriminate against Do-
minion companies as such, and does not attempt to impose
sanctions or conditions affecting the capacity or status of the
Dominion licensed companie.s."
Provincial Revenue
From the standpoint of provincial revenue, it is expected
that a loss will be suffered, for there will be a greater ten-
dency for companies to take out Dominion charters. Fees
charged for the incorporation of companies will, therefore,
be lost to the provinces.
While it is only certain clauses of the company licensing
acts of Ontario, Saskatchewan and Manitoba that are declared
ultra vires by this judgment, it is applicable to legislation
which has been passed by most of the provinces since 1900.
These acts, applied to foreign companies, including in that
category not only companies incorporated by other coun-
tries, but those incorporated outside the enacting province
and companies incorporated by the parliament of Canada.
As regards the latter class, the Dominion authorities had con-
sistently adhered to the view that such provincial legislation
was iilira vires, and a number of provincial enactments had
been disallowed on that ground.
In 1900 an act was passed by the province of Ontario,
which at first imposed merely nominal requirements on Do-
minion companies. An amendment of this act in 1903, mak-
ing the requirements for Dominion companies more oner-
ous was challenged by the Department of Justice and an
undertaking was secured th&t it would be repealed. Before
the next session of the legislature a change of government
occurred and the undertaking was not carried out. The On-
tario Act having accepted this allowance in this fashion, the
other provinces followed suit, and all except Quebec passed
enactments following more or less closely the Ontario model.
The John Deere Case
In 1914, at the instance of the Canadian Manufacturers'
Association, a case, John Deere Plow Co. v. Wharton, was
taken from the British Columbia courts to the Privy Council,
which decided in favor of the Dominion, holding that the com-
pany in that case having been incorporated under a Dominion
charter, could not be required to take out a license under the
British Columbia Companies Act as a condition of exercising
its powers in that pi-ovince. The provisions of the British
Columbia Act had been copied almost verbatim from the
Ontario Act, but the Ontario authorities declined to recognize
the British Columbia decision as binding, relying on some
THE MONETARY TIMES
Volume 66.
small differences to esta.blish a distinction. The government
of Manitoba, whose act had been practically copied from
that of Ontario, adopted a similar view. Several other pro-
vinces attempted by slight amendments to their acts to pre-
serve their substantial effect.
The province of Saskatchewan, interpi-eting the John
Deere decision to mean that Dominion companies must be
treated without discrimination, combined its Foreign Com-
panies Act with the Companies Act of Saskatchewan, and
required Dominion companies to go through the same pro-
cess of incorporation and licensing as local companies and
bring them substantially under the provisions of the local
company law. At the same time the province of Saskatche-
wan took the initiative (which no other province had pre-
viously undertaken) in enforcing the act by bringing pro-
ceedings agE'inst several companies.
Attitude of Supreme Court
The issue having thus been raised, test cases were also
instituted at the instance of the Canadian Manufacturers'
Association in Manitoba and Ontario. The decisions of the
Canadi&n courts up to the Supreme Court of Canada were
uniformly in favor of the provinces, with the exception of
the decision of Justice Masten of Ontario, whose judgment
is now sustained by the Privy Council. Dissenting judgments
were also given by Justice Ferguson of Ontario and Justice
Perdue and Justice Haggart of Manitoba. In the Saskatche-
wan cases the Privy Council reverses the unanimous opinions
of eleven judges of the courts below.
The decision is that the company licensing and regis-
tration acts of Ontario, Manitoba and Saskatchewa.n are
nltra vires and invalid insofar as they purport to affect Do-
minion companies. Their lordships hold that the acts in
question are of the same general character as the act held
to be ultra vires in the John Deere Plow case.
The argument against some of the provincial enactments
was that these enactments sought under the guise of taxation
to nullify the powers of Dominion companies. Their lord-
ships say: —
"What cannot be done directly cannot be done indirectly.
This is a- principle which has to be kept closely in view in
testing the validity of the provincial legislation under con-
sideration as affecting Dominion companies.
"The methods by which the direct taxation is to be en-
forced may be restricted to the bringing of an action, with
the usual consequences. It does not follow that because the
government of the province can tax that it can put E>n end
to the existence or even the powers of the company it taxes
for non-compliance with the demands of the tax-gatherer.
"If the condition of taking out a license had been intro-
duced, not so as to affect the status of the Dominion com-
pany, but simply for the purpose of obtaining payment of a
direct tax for provincial purposes, or of securing the observ-
ance of some restriction as to contracts to be observed by
the public generally in the province, or of causing' the doing,
by that public generally, of some act of a purely local char-
acter only under license, their lordships would have been
prepared to regard the condition as one which it was within
the power of the province to impose. Even then it would
have been requisite to see that the provincial legislature was
not, under the guise of imposing such direct taxation, really
doing something else, such as imposing indirect taxation.
"Their lordships have come to the conclusion that the
real effect of this act, as expressed or implied by its provi-
sions, is to preclude companies of this charr..cter from exer-
cising the powers of carrying on business in Ontario, to the
same extent as in other parts of Canada, unless they comply
with a condition sought to be imposed, that of obtaining a
license to do so from the government of the province. . . .
Their lordships are, therefore, of opinion that these provi-
sions cannot be regarded as confined only to such limited
purposes as would be legitimate, and that they are therefore
vltra v-irts."
BUSINESS STILL QUIET IN WEST
Failures are Numerous — Winnipeg will Borrow for Schools —
"Made-in-Winnipeg" Exposition Planned
(Staff Correspondence.)
Winnipeg, April 7, 1921.
THE weather locally and throughout the west is not at all
favorable this week for spring work, but as soon as
good weather comes, the farmers are reported to be all in
readiness to get their crop in. Business is somewhat quiet
in the west just now, and quite a number of failures are
taking place at western points. Collections are also reported
slow. In Winnipeg, business is only fair, but the outlook
for building this year is brighter. A very successful build-
ing and construction exposition was concluded last week,
which it is stated over one hundred thousand people visited.
Announcement is also made of a "Made in Winnipeg"
exposition to be held in the Board of Trade Building from
May 9th to the 14th. The output from Winnipeg industries
in 1920, with an invested capital of $97,698,825 and an
estimated annual pay roll of $24,308,982 was valued at $120,-
092,013 according to officials of the above exposition.
Statistics of the value of the output show the main manu-
facturers to have produced during the year goods as fol-
lows: Flour and grist mills $14,487,398; slaughtering and
meat packing $6,236,236; butter and cheese $2,905,648; bags,
cotton, $2,750,623; electric light and power $2,335,911; lum-
ber products $1,818,567; bread, biscuits and confectionery
$1,816,671; printing and publishing $1,785,001; malt liquors
$1,663,905; coffees and spices $1,704,424; foundry and ma-
chine shop products $1,493,567; furnishings goods, mens, $1,-
147,456.
On the Winnipeg stock exchange, some movement is
reported of local stocks, including the Union Bank, Standard
Trust, and Home Investment, at good prices.
A shoe factory is to commence business in Winnipeg
this spring, promoted by Geo. C. Lennox. Mr. Lennox has
been engaged in business in Winnipeg as a jobber for some
years, and has decided to give up this business and establish
a shoe factory. A number of prominent Winnipeg people
are interested in this new enterprise.
The two million dollar by-law of the Winnipeg school
board was passed this week by a substantial majority. The
money to be raised as a result of this by-law is for additional
school accommodation, which is badly needed at the present
time.
IMMIGRATION TO CANADA
The following is a statement of immigration to Can-
ada, frorri April to February, 1920-21, compared with that
of the corresponding months of 1919-20: —
1920-21.
Increase
From Other over
British. U.S.A. countries. Totals. 1919-20.
.A.pril 6,229 ' 6,324 734 13,287 189/
May 12,414 5,353 1,844 19,611 92%
June 9,844 4,720 " 1,780 16,344 109%
July 10,472 4,301 1,888 16,661 50%
August 7.404 5,838 2,510 15,752 4%
September . . 6,405 4,227 2,718 13,350
October . . . 7,602 3,945 3,305 14,852 3%
November . . 4,695 3,262 2,890 10,847 34%
December . . 1,968 2,110 3,105 7,183 14%
January ... 987 1,751 1,515 4,253 1%
February .. 1,380 1,936 2,012 5.328 16%
Totals 69,400 43,767 24,301 137,468 29%
"Silver and Gold" is the title of a pamphlet just issued
by Lorsch and Co., 56 King Street West, Toronto, dealinc
with the present situation and the Canadian mines.
April 8, 1021
THE MONETARY TIMES
The Week in Parliament
Railway .Situation Still Absorbs Attention -Dominion Life and Fidelity
Insurance Bills Get First Readings — Several Railway Measures Under Way
(Special to TItc Monetary Times.)
Ottawa, April 7, 1921.
Thursday, March 31
In the House of Commons: — (a) Passing of Trade and
Commerce estimates, including bounties on linen yarn spun
in Canada, and on crude petroleum and S120,000 to maintain
Honorary Advisory Council of Industrial and Scientific Re-
search.
In Senate:— Considered in committee amendment bills to
Exchequer Court -Vet and Post Office Act.
Friday, April 1
In the House of Commons: — (a) .\ppointment of special
committee to inquire into all matters pertaining to the fuel
supply of Canada: (b) Estimates Trade and Commerce,
especially item of SI, 175.000 for administration of Canada
(Jrain .Vet, item of .S2;5O,O00 for Trade Commissioners and
commercial agents. SIOO.OOO for development and extension
of Canadian trade and \arious sums covering necessities of
Weights and Measures branch, (ias and Electricity branch,
mail subsidies and steamship subventions, and Patent
and Copyright brant-h: (c) Second readings of following
bills, — ad respecting the Western Dominion Railway Co. and
act to incorporate .Standard Insurance Co.
In Senate: — (a) Second reading Canadian Bar Associa-
tion bill; (b) Third readings Exchequer Court and Post
Office .Vet amendment hills: (c) First readings of following
bills: — .Vet respecting Dominion Life .\ssurance Co.. act to
incorporate Fidelity Insurance Co. of Canada, and act to in-
corporate .Mayo Valley Railway Co.. Ltd.: (d) Second read-
ings of following bills^ — respecting Montreal. Ottawa and
Georgian Bay Canal Co.. one to amend act to incorporate
(ulmour & Hughson. Ltd.. one respecting Oshawa Railway
Co.. one respecting Thousand Islands Railway Co.. one re-
specting Kettle Valley Railway Co.. one respecting Manitoba
and Xorth-Western Railway Co. of Canada, one respecting
the Quebec Central Railway Co., one respecting Essex
Terminal Railway Co.. and one respecting the Ottawa.
Northern and Western Railway Co.
Monday. April 4
In House of Commons: — (a) First readings bills to in-
corporate the Fort Smith Railway Co.. bill to amend the
Railway Act by putting vessels on inland waters under Rail-
way Commission introduced by .1. E. Armstrong of East
l.ambton. IMr. Caldwell's amendment bill to Fertilizer Act
making it necessary to mark commercial fertilizer better to
prevent fraud: (b) Special Parliamentary Committee ap-
pointed to inquire into question of Proportional Representa-
tion.
Tuesday, .\pril .5
In the House of Commons: — (a) Discussion on alleged
(;rand Trunk Railway default in which it was announced
that government was insisting on immediate vesting of
management of Grand Trunk in government as well as hand-
ing over of preference and common shares pending decision
as to value by Board of .Vrbitration; (b) First reading Can-
ada West Indies Trade .Agreement. 1920. bill: (c) Discus-
sion resolution to adopt agreement made with France re-
garding customs privileges exchanged and bill introduced
and read first time: (d) Second readings of following bills:
One to incorporate Fort Smith Railway Co.; (e) Decision to
appoint special Parliamentary Committee to consider all
questions germane to government railways and their
maintenance in efficiency and restoration to solvency.
Wednesday, April 6
In House of Commons: — (a) Discussion status of
Catholic National LTnions versus International Unions and
Minister of Labor's condemnation of former. Mr. Ernest
Lapointe attacking minister's views on question; (b) Rail-
way estimates.
In Senate: — Discussion trade of port of Quebec, and
ways of advertising Canadian grain from United States
ports to this port.
Railway Question Still Uppermost
As in other weeks the railway question again over-
shadowed other questions in its importance. The news that
the government had been corresponding with Sir Alfred
Smithers with the object of having the management of the
road turned over to the Dominion government at an early
date caused this e.xcitement. Correspondence brought down
Wednesday shows that the Dominion government refused to
pay bonds falling due on .\pril 1, or to extend the time of
the Board of .-Vrbitration if this were not done. .-Vt latest re-
ports the Grand Trunk had unwillingly submitted to these
proposals.
Special committees were appointed during the week to
inquii-e into the fuel supply of Canada, proportional represen-
tation and the conduct and best methods of improving the
government-owned roads as to service and finances.
War Loan Committee's Work
Replying to Hon. W. S. Fielding in the House on Wed-
nesday, Sir Henry Drayton, Minister of Finance, stated that
the committee of bankers handling the Canadian government
bonds had purchased bonds to the par value of $70,329,0.50
between .January 22, 1918, and January 20, 1919, when the
•committee was disbanded for the first time. From August IG,
1919, when the committee was revived, until November 30,
1920, when it was again discontinued, the committee pur-
chased bonds to the par value of $229,206.6.'i0. During the
first period of its existence the committee disposed of bonds
to the par value of $'54..'")49,40O and S190,2,'j9,100 during the
second period. .\t the close of the first period, bonds with
a par value of $.5,779,6.50 remained in the hands of the com-
mittee, and to par value of $108,947,.5,50 at the end of the
second period.
-•Vt the close of the first period the bonds remaining in
the hands of the committee were taken over by the Minister
of Finance for sinking fund purposes at 99% for 1922's and
99% for 1927's. These were the ruling market prices.
After returning the unsold bonds and crediting its ac-
counts with interest earned by bonds on hand from time to
time, the committee was able to show a surplus on operations
of $124,088. No interest was charged in the committee's
books on cash advances by the Department of Finance from
surplus loan funds, and which amounted to $10,950,000.
During the second period the committee paid in $293,-
529,680 for bonds purchased, and $184,318,978 was received
by the committee as the proceeds of sales. Since the close
of the second period bonds to the par value of $19,719,250,
being the total accumulations of bonds of the taxable 1919
issue, had been placed in the hands of investors.
This left $89,228,300 held by the Finance Department,
all of which bonds were exempt from taxation and become
available for sinking fund purposes. Accounts from the
second period showed a surplus from operations of $714,233
after meeting all expenses. This result was anived at after
taking into consideration intei-est earned on bonds held from
November 24, 1919, to December 1, 1920, but disregarding
any interest accruing after December 1, 1920, as well as
interest amounting to $2,140,864 accruing on bonds to the
THE MONETARY TIMES
Volume 66.
par value of $34,272,750, %vhich were purchased between
August 26, 1919, and December 15, 1919. Out of this the sum
of $1,160,308 was provided to reduce the book values of cur-
rent account bonds to the closing bid prices of the Toronto
Stock Exchange on January 22, 1921. During the second
period $107,000,000 was advanced to the committee by the
Department of P'inunce. These advances were from Victory
Loan balances on liand, and no interest was charged against
them on the committee's books.
LIFE UNDERWRITERS MEET IN WINNIPEG
Further Advances of State Insurance Forecasted — Taxation
Criticized — Training of Life Insurance Salesmen
(Staff Correspondence.)
Winnipeg, April 7, 1921.
rp HE second annual institute of the Winnipeg Life Under-
-*• writers, jointly in connection with the University of
Manitoba, was very successfully carried out this week in the
western metropolis, with over two hundred delegates in at-
tendance.- Life insurance men from all parts of western
Canada, as well as several from the east, were ga.thered to-
gether, and the addresses delivered and the practical discus-
sion that took place, had great inspirational as well. as edu-
ca'tional value.
Courtney Barbour, general agent of the Equitable Life
Assurance Society in Chicago, and Darby A. Day, also of
Chicago, were the special speakers. On the opening day of
the conference Mr. Barbour gave an address on "Life Under-
writing," in which he emphasized the importance of the
business. He mentioned the needs the various underwriting
agencies are expected to conserve, and touched on the differ-
ent phases of underwriting. He urged his hearers to appre-
ciate the significance of their "tremendously important busi-
ness as compared with other business and asked them to re-
alize what was expected of them by reason of their being
associated with it. We are associating with the biggest busi-
ness operating in this land or any other land to-day that
man can be related to," he said. Mr. Barbour described the
family as a corporation, the head of which has a responsi-
bility in underwriting the needs of the group. If he does not
live up to his responsibility he is an undesirable citizen, Mr.
Barbour declared. He pointed out to his hearers that they
were charged with the responsibility of being able to analyse
the needs that exist in their particular community, and to
diagnose the situation that exists in each group with which
they have contact in the development of man.
The Medical Viewpoint
Dr. E. W. Montgomery, medical director of the Sovereign
Life, Assurance Co., gave a most instructive address at the
luncheon on the opening day, in which he mentioned a num-
ber of points that field men should know in selecting pros-
pective risks, including heights and weights, blood pressure,
signs of tuberculosis, and methods by which field men would
be able to determine whether applicE.nts were suitable candi-
dates or not. Some insurance companies, he said, are too
selfish in refusing to give insurance to any but perfectly
healthy people, but in spite of this he was confident that most
insurance companies were altruistic enough to make arrange-
ments for better benefiting the community.
In the afternoon of the second day of the institute, John
A. Tory, of the Sun Life. Toronto, spoke on uniform legisla-
tion throughout Canada, covering matters relating to the in-
surance business. This, said Mr. Tory, was one of the aims
of the Dominion Association. The association, he said, was
desirous of having trained men in the field selling insur-
ance, and with this object in view was seeking to establish
training centres, or have the universities introduce courses
for educating insurance men. Taxing life insurance pre-
miums, Mr. Tory said, was taxing thrift, and he considered
that it was a wrong procedure to tax the savings of the people.
C. W. Rowley, of the Canadian Bank of Ccynmerce, also
spoke on insurance from the point of view of the banker,
and indicated the relation which the purchase of insurance
had to the borrowing of a customer. He explained the great
value of what is known as business insurance, and instanced
the case of a well-known United States business man who
bought one million dollars worth of life insurance for the
protection of specified business interests in the event of his
death.
Nationalization
Professor Reginald Jones, of the department of econo-
mics at Manitoba University, in an address, raised the ques-
tion of the nationalization of life insurance and the possi-
bility that the present system might be replaced by a system
of government control, under which insurance would be made
compulsory. There can be little doubt that at least some
approach to government insurance will be made in years to
come. The state must care for the aged, and the only way
In which this can be done is through a system of taxation.
It is recognized that what the life companies must do is to
improve the life insurance situation by lessening the cost of
operation, and securing still better results for the public. If
the companies continue to make progress in the future, as
they have in the past fifty years, there is no doubt that
these desired results will be attained.
The matter of institutional advertising was ably dis-
cussed on the last day of the institute by M. D. Anderson,
of the iEtna Life, Winnipeg. Mr. Anderson outlined a plan
of advertising that the Winnipeg Life Underwriters' Associa-
tion have been carrying out during the past year. He stated
that the managers of the Winnipeg branches of life insur-
ance companies, and head offices located here, had contributed
a fund amounting to $4,000, which had been spent on a pub-
licity campaign in the "Winnipeg Free Press," with very
excellent results.
Mr. Anderson pointed out that the Dominion association
were about to begin a plan of institutional advertising and
would spend $30,000 on a Dominion-wide campaign. Mr.
Anderson felt that this amount was altogether too small,
and thought that when the plan got under way, that the
Dominion association would undoubtedly see the advisability
of going in for institutional advertising in a much larger
way, stating that $130,000 would be more in keeping with
the ideas of the Winnipeg association.
Law in Life Insurance
Travers Sweatman, K.C., of Winnipeg, at the closing ses-
sion gave a very instructive address on "Law in Life Insur-
ance," in which he touched on many points that field men are
met with every day.
The sessions of the institute were ably presided over by
J. E. Buchanan, of the Monarch Life, president of the Win-
nipeg Life Underwriters' Association. The banquet on the
closing day was addressed by John A. Tory on "Life Insur-
ance in Canada and its Possibilities for the Future." He
referred to the two and a half billion of life insurance in
force in Canada at present, and the thirty-three million paid
out in Canada on war claims and the flue. He also referred
to the wonderful progress that has taken place in life insur-
ance in the last ten years, and how the field force of any
company were its greatest asset.
Mr. Tory believed that the time is coming when the
agents in the field will have to be educated life insurance
salesmen. He firmly believes that the development of life
insurance in Canada will be such that the past will fall into
insignificance. Referring to the subject of state insurance,
Mr.- Tory believes that private companies can better handle
the business of insurance than any party government such
as we have at present, and that if the companies so manage
their business and keep clean their affairs that public opinion
would be with the private concerns as against state insur-
ance.
April 8, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle.
of Canada
Addreas: Corner Church and Court Streets, Toronto, Ontario, Canada.
Telephone: Main T404, Branch Exchange connecting all department*.
Cable Address: "Montimea, Toronto."
Winnipeg Office: 1206 McArthur Building. Telephone Main 8409.
G. W. Goodall. Western Manager.
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tion. It absorbed in 1369 The Intercolonial Journal of Commerce, of
Montreal : in 1870 The Trade Review, of Montreal : and the Toronto
Jonmal of Commerce.
The Monetary Times does not necessarily endorse the statements and
opinions of its correspondents, nor does it hold itself responsible therefor.
The Monetary Times invites information from its readers to aid in ex-
cluding from its columns fraudulent and objectionable advertisements. All
information will be treated confidentially.
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PRINCIPAL CONTENTS
Editorial: page
National Revenue and Expenditure 9
Co-ordination of Railway Traffic 9
Something About National Debt 10
A Bank's Stationery Department 10
New Railways Not Wanted 10
Special Articles:
Dominion Companies' Power to Do Business 5
Business Still Quiet in the West 6
The Week in Parliament 7
Co-insurance and Uses and Occupancy 18
Financing of Public Utilities 22
Conveyance of Property By Debtor 26
Monthly Departments:
March Bond Sales 14
Trade of Canada By Countries 20
Government Currency 24
March Fire Losses 24
Weekly Departments:
News of Industrial Development 28
Insurance Licenses and Agency Notes 30
New Incorporations 30
News of Municipal Finance 32
Government and Municipal Bond Market 34
The Stock Markets 36
Corporation Securities Market 38
•Corporation Finance 42
Recent Fires 44
NATION.VL REVENUE AND EXPENDITURE
CO-ORDIN.VTION OF RAILWAY TRAFFIC
DURINC; the liscal year which endeil on March 31 ordinary
revenue of the Dominion exceeded ordinary expendi-
ture by nearly $94,000,000. Despite the decline in customs
and excise revenues noticeable in the last few months,
revenue for the 12 months was $451,366,029, as compared
with $380,832.,50T in 1919-20. Ordinary expenditure in
1920-21 was §;i57,.'5ir>,278, in comparison with an ordinary
expenditure of 8340.880,668 in 1919-20.
Revenue of the departments compares as follows: —
12 months to 12 months to
Revenue. Mar. 31, 1920. Mar. 31, 1921.
Customs $167,429,812 $162,812,951
Excise 42,282,851 36,599,473
Postoffice 20,801,308 23,998,409
Public works, including railways
and canals 43,936,862 38,873,833
War tax revenue —
Inland revenue 15,232,754 76,441,812
Business profits tax 44,737,468 37,601,511
Income tax 17,872,202 38,814,495
Other war tax revenue 1,578,055 1,806,621
Other revenue accounts 26.961.190 34,316,920
Total $380,832,507 $451,366,029
Expenditure —
Interest on public debt $ 99,812,450 $129,118,279
Agriculture 4,264,983 4,746,670
Pensions 23,394,001 35,312,736
Public works consolidated fund. 7,273,739 8,816,176
Postoffice 17,375,01 1 20,348,014
Dominion lands and parks 2,864,328 3,645,416
Soldiers' land settlement 37,036,145 1,924,978
Soldiers' Civil Re-establishment. 44,128,661 31,796,931
Other expenditure accounts 104,731,346 121,806,075
Total $340,880,668 $357,515,278
ONE of the points emphasized in a series of articles issued
by the publicity department of the Canadian National
Railways is co-ordination. A recent statement says: —
"Among the favorable factors that loom up in connec-
tion with the amalgamation of the Grand Trunk into the
Canadian National System is the supplying of U.S. railway
connections for the National System in which, as pointed
out, the C.P.R. has had previously a marked superiority
over the C.N.R. The Grand Trunk receives a much greater
tonnage from U.S. railways than the C.P.K. does. The
Grand Trunk will also supply in a large measure the propor-
tion of high class freight that is badly needed by the Na-
tional System and on which a long haul should enable it to
pay some of its interest charges. It has a fine tonnage in
merchandise and manufactured goods. The Grand Trunk
provides in many respects what the National System
previously lacked and only a reasonable time to allow normal
peace-time development is required to give the National
System all the tonnage required to produce earnings suffici-
ent to cover its annual expenditures.
"Any one who does not believe that Canada can produce
the traffic should move to another country, and anyone who
thinks that Canada cannot produce men to administer
honestly and capably the great railway properties that the
Dominion government has acquired levels a criticism at the
character of her citizenship that should be resented. Canada
is not trying to create a government-owned transportation
monopoly but proposes to protect her investments and those
of the provinces, in a common-sense way, by tlie operation
of the great railway system as a corporation would operate
it for business profits, and without political interference.
The problem in other countries has not been to get the rail-
way men but to get men in politics who are statesmen, and
who at the sacrifice of some temporary political advantage
will keep their hands off the railways."
THE MONETARY TIMES
SOMETHINC; ABOUT >JATIONAL DEBTS
NEW RAILWAYS NOT WANTED
CANADA, with one-half the population, owes five times
as much as Mexico. The "Mexican Review" (Washing-
ton), also points out that Australia, with one-third the popu-
lation, owes four times what Mexico does. Argentine owes
one-thivd more than Mexico, with one-half the population.
Belg-ium owes seven times as much as Mexico, but has only
one-half as many people. With about one-tenth the popu-
lation, Ecuador owes one-fifth more than Mexico. Holland,
with little more than half the population of Mexico, owes
nearly three times as much. New Zealand, with but one-
tenth Mexico's population, has a debt more than double that
country's. Portugal has over three times Mexico's debt,
with less than one-third the population. The newly erected
state of Poland, with about the same population, has an in-
debtedness twenty times that of Mexico. Roumania, with
about the same population within her new boundaries, owes
ten times as much as Mexico. Switzerland, though her
population is only one-third, owes about the same amount as
Mexico. And just think of it, Great Britain, with less than
three times the population, has a public debt almost exactly
one hundred times as great. The only country so far to
confess bankruptcy is poor little, broken Austria, which,
with one-third the population, is saddled with a debt more
than forty times as great as Mexico's, a proportionate in-
debtedness of one hundred and twenty to one. Why pick on
Mexico?
A BANK'S STATIONERY DEPARTMENT
SOME "Sidelights on the Stationery Department," are given
in the latest number of the Royal Bank Magazine. The
extent of this work in a large institution is shown by the
fact that the department has an annual turnover of over
$700,000, and a staff numbering 18 — ten in the office and
eight in the warehouse. The cost of packing cases in 1920
alone amounted to .$7,000. Although the head office of the
Royal Bank is in Montreal, its stationery department is
located in Toronto on Colborne St., being a better distribut-
ing point, tnd also the centre of the manufacturing station-
ery industry of the Dominion. For purposes of distribution,
the branches of the bank are divided into six districts —
Maritime, Quebec, Ontario, Middle West, British Columbia
and Foreign. Each is supplied twice a year, so that there
is one division to be supplied every month. Requisition forms
are distribut«d, filled in, showing quantities on hand and re-
quired by each branch, and then summarized by the station-
ery department, which is thus enabled to check off the re-
quirements with the stock on hand.
Meeting foreign requirements presents special difficul-
ty. R. M. Woollatt, who writes the above-mentioned article,
describes these as follows: "Distribution of stationery sup-
plies to branches in Canada presents no particular problem
other than a smoothly running organization, but distribution
to foreign branches bi-istles with difficulties and problems.
It will be readily understood that this was a difficult matter
during the war, but few of the staff know the real problems
it actually did present. Foreign branches were very patient
under the long dela^ys which were bound to occur between
the time the supplies were packed for shipment and the date
of their arrival. It is necessary to furnish forms and books
in a number of different languages and currencies for differ-
ent branches, and every country has its own peculiar customs
regulations in regard to packing, weighing, invoicing, etc.,
which have to be carried out to the letter. Latin-American
countries are notoriously difficult to ship to. To further add
to the difficulties of shipping, a considerable number of
foreign branches cannot be reached direct from a Canadian
port. In order to prepare a foreign invoice every class of
merchandise has to be weighed separately, and the weights
turned into kilos, as a specific duty is charged."
INCREASING deficits on the National Railways does not
seem to discourage new railway ventures. One of these
is the proposed extension of the Temiskaming and Northern
Ontario Railway from Cochrane to James Bay. As the
Pulp and Paper Magazine points out, however, to build a
railway on a foundation of pulpwood is a precarious under-
taking. The freight on pulpwood is generally mentioned
as the principal source of revenue. For some time it would
be the only source of revenue. A generous estimate (or con-
servative exaggeration!) gives the amount of pulpwood that
would be made available by such a road 38,000,000 cords.
This means that 30 to 50 thousand square miles of wooded
country would have to be served by the road. That calcula-
tion would assume that the road could be reached from all
points from 50 to 75 miles on each side. With the principal
rivers running parallel with the rails, it is difficult to see the
probability of such a condition, especially in view of the very
lavish distribution of muskeg over this area.
It is not considered good form in Northern Ontario to
criticize this idea of railway extension. In fact a very
prominent and clear thinking man in the district created
quite a bit of feeling for suggesting that the possibility of
profit to the road should be carefully estimated from an
accurate survey before the government commit itself on the
matter. That suggestion should certainly be followed.
Hauling pulpwood will not support a railroad. What else is
there in the country? If the idea is 'to open up farm land,
miles and miles of land could be found, probably of better
quality, along government roads already built and suffering
this day for want of traffic. Why assume an avoidable and
unnecessary debt?
"Men who advocate personal privilege in these days
are social anarchists," said a temperance speaker in Toronto
recently. The world of anarchists has lasted a long time.
The Dominion government is now wondering if those
who urged it into the policy of railway nationalization will
desert it in the hour of public ownership's trial.
*****
Several life insurance companies are experiencing a
decline in business compared with 1920. The experience of
financial institutions will be the same as that of industry,
though the effects are not met so quickly.
Bonds should not be sent through the mail without
being insured, -especially as the cost of such insurance is
very small. Out-of-town investors wishing to send bonds
to investment house? in another city for sale can insure
"them in two ways. They can take them to their local bank,
who will undertake to deliver the bonds to their destination,
registering ?nd insuring them, or they can notify the invest-
ment house that the bonds are being sent. The investment
house will at once have them insured and deduct the cost of
th^ insurance from th° proceeds. of sale. Insurance costs
10 cents per $1,000 worth of securities represented.
RISE IN MONEY HURTS TRADE
Hungarian merchants who purchased foreign goods when
th" exchange rat' on the kroie was at its lowest ebb are
threatened with ruin, they told Finance Minister Hegedus
on March 25 bv th^ rapid rise in the value of the krone
from 500 to 250 to the dollar. "If you continue to improve
our money we are ruined," they declared.
Merchants who purchased foreign goods when the krone
was practically worthless now are unwilling- to cut down
prices and the public refuses to buy at the old prices. Con-
sequently business is at a standstill.
April 8, 1921
THE MONETARY TIMES
To Investors
IF you wish to buy or sell
Victory Loan or other
bonds, we would remind you
that our branches at Toronto
and Montreal have depart-
ments especially organized for
this purpose.
Call at our nearest branch ;
our Manager will be glad to
arrange this for you.
THE CANADIAN BANK
OF COMMERCE
Head Office
Paid-up Capital
Reserve Fund
$15,000,000
$15,000,000
Protect Your Valuables
WHERE are your valuables?
Have you overlooked pro-
viding for the safety of your
insurance policies, bonds, deeds
and other important papers?
A Safety Deposit Box is inexpen-
sive to rent, and affords you the
best protection.
Ask at this Bank for particulars.
IMPERIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
File Your Income Tax
Returns
The Income tax for 1920 of Cor-
porations and Joint Stock Com-
panies must be filed with the
Dominion (jovernment on or
before April 30, 1921. The
Government this year requires
you to forward a cheque with your
return for 25% of the tax due.
UNION BANK OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE ; TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET. E.C.2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
Chas. J. BiNMORE, aftei- having- served thirty-five years
as treasurer of the Montreal Protestant School Board, has
retired.
Sir Thomas White; has resigned as a member of Parlia-
ment for Leeds, in order to accept a position as one of the
arbitrators on the purchase of the Grand Trunk Railway.
Norman B. Stark, formerly member of the Montreal
bond house of N. B. Stark and Company, and more recently
with W. R. Grace and Company, has joined the Montreal
office of N. A. Macdonakl and Company, bond dealers.
J. Arthur Connors, a representative of the United
States Tariff Commission, was in Regina last week for the
purpose of studying the agricultural situation in Western
Canada. Among those on whom he called were the minister
and deputy minister of agriculture and the Saskatchewan-
Manitoba manager of the Canadian Co-operative Wool
Growers, Limited. The purpose of Mr. Connors' visit to
Canada at this time is to secure data in regard to the agri-
cultural, fisheries and pulpwood industries and possibly other
industries, the products of which are imported into the United
States.
E. R. Peacock, formerly of Toronto, has been nominated
to a seat en the directorate of the Bank of England. Mr.
Peacock is a na-
tive of Canada,
having been born
ia'Glengarry Coun-
ty, Ontario. He
was educated at
Queen's University
and after graduat-
ing, became dean
of Upper Canada
College for a num-
ber of years. At
the present time
he is vice-presi-
dent of the Do-
minion Securities
Corporation, presi-
dent of the Barce-
lona Light, Power,
and Construction
Co., vice-president
of the Brazilian
Light, Power and
Traction Com-
pany, and trustee
for the bondhold-
ers of the Mexican
Light and Power
Company. For a number of years he has held a prominent
position in London among financiers, and his appointment to
the directorate of such an institution as the Bank of Eng-
land is a recognition of his merits.
OBITUARIES
Philip H. Yawman, president of the Office Specialty
Manufacturing Company, Limited, Newmarket Ont., died at
Rochester, N.Y., on April 5.
Gerald Stuart Forbes, manager of the Danforth Avenue
branch of the Merchants Bank of Canada, Toronto, died
this week in Montreal, Mr. Forbes went to Montreal to
stay with relatives, intending to rest and recuperate, but
was forced to enter a hospital. The youngest son of the late
Alexander Mackenzie Forbes, he was born and brought up
in Montreal. He h^d been with the Merchants Bank of
Canada in Toronto for the past ten years, and previously
had served the bank in Quebec.
Jacob Lewis Englehart, late chairman of the Temis-
kaming and Northern Ontario Railway Commission, died
in Toronto on April 6, in his seventy-fourth year, after an
illness lasting five days. As a business man and philanthro-
pist of the highest type, his name and deeds will long be
remembered, particularly in Northern Ontario, where his
best work was carried on. A pioneer in reality in Northern
Ontario, he was in
his younger days a
pioneer in busi-
ness. Born in
Cleveland, Ohio, on
November 2, 1847,
h e received h i s
education in the
public schools of
that city, and for
a time was engag-
ed in commercial
enterprises there.
In 1870 he. moved
to London, Ont.,
and was one of the
pioneers to i n -
vestigate the oil-
fields of that sec-
tion of the pro-
vince. He organiz-
ed the firm .of J.
L. Englehart and
Company, which
was the first con-
cern to ojierate an
oil refinery in On-
tario. He sold his
interest to the London Oil Refining Company, and was on
the eve of returning to the United States when he purchased
the Carbon Oil Company, which later became part of the
Imperial Oil, Limited, of which Mr. Englehart became vice-
president. In 1912 Mr. Englehart was elected a director of
the Bsnk of Toronto. He was also president of the Crown
Savings and Loan Association of Petrolea, and vice-president
of the London and Western Trust Company.
BANK BRANCH NOTES
The Imperial Bank has opened a branch at College and^
Shaw Streets, Toronto.
The Canadian Bank of Commerce is transferring its
branch at East End Queen Streets, Sault Ste. Marie, to a
new building on Queen St., opposite the end of McDougal St..
The Royal Bank of Canada intend to establish a branch-
at Lipton, Sask., this summer. The building is to cost $10,000.
Announcement has been made that the Bank of Montreal
h&3 purchased the Commercial Hotel property at Stratford,
at the price of $40,000. The bank plans to erect a new
bank building.
The branch of the Bank of Montreal at Yonge and Wel-
lington Streets, Toronto, will be merged with the main office,
Toronto, on or about the 16th inst., after which date all
business will be transferred to the latter office.
Angus McLean, of the Bank of Montreal staff, has been,
transferred to Brandon, as manager. He was formerly at
Raymond as accountant.
E. Potter, of head office staff of the Sterling Bank, has
been appointed acting supervisor of western bra'nches, with:
headquarters at Winnipeg.
The Bank of Montreal announces the following: A. J.
N. Willoughby appointed acting manager at Logan Ave.,
Winnipeg; A. G. Duncan appointed acting manager at Oak
River, Man.; S. C. Bunting, manager at North Battleford,
appointed manager at 365 St. Catherine St. West, Montreal;
S. Hall, manager at Oak River, appointed manager at North
Battleford, Sask.; R. Y. Inglis appointed acting manager at-
2440 Park Ave., Montreal.
April 8, 1921
THE MONETARY TIMES
13
"""III miiiMiiiiimniiiiimiiiiiiiniiiiiimiiminiiiminiimmitmmiiiiiriiTimiiriiniillllllllirrnilinillllllimimii^
I The Sterling Bank I
I OF CANADA |
iiiiiiiiiiiiiiiiiiniiinniiiMrmrniiiiiiiiiiiinmmuiiiiujiimmmimniuoiiiiiiniiiiniiuiiiniiiinimiiiiiiiiiJiiiiiiiiuiiiiiiiiiiiuiiiifi
The real test of a Bank's Service policy is the manner in
which it is regarded by the Banks' clients. Reports received
from clients indicate — besides belter Collection returns and
a more efficient service — that the financial advice we have
been able to render through a ptrsonai knowledge of their
business has proved of value to ihem.
Head Office
KING AND BAY STREETS, TORONTO
LONDON JOINT CITY AND
MIDLAND BANK LIMITED
The Right Hon. R. McKENNA
j Subscribed Capital
I Paid-up Capital
I Reserve Fund -
I Deposits fi^i'L' iv.\ '92
HEAD OFFICE : S. THREADNEEDLE STREET. LONDON. E-C2.
- £38,116,050
- 10,859,800
10,859,800
- 371,841,968
OVERSEAS E
I STRECT. LONDON. LC Z
BELFAST BANKING CO LTD THE CLYDESDALE BANK LTD
The National Bank of Scotland
Limited
Incorporated by Royal Charter and Act of Parliament. Established 1K25
Capital Subscriber! ;f5,000,000 825.000.000
Paid up 1 . 100.000 5.500.000
Uticalled 3,900,000 19,500,000
Reserve Fund 1 ,000,000 5,000.000
Head Office • EDINBURGH
WILLIAM CARNEGIE. General M.inager. GEORGE A. HUNTER. Sec.
LONDON OFFICE-37 NICHOLAS LANE. LOMBARD ST.. EC. 4
T. C. RIDDELL. DUGALD SMITH.
Manager Assistant -Manager
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London, arc retired
on terms which will be furnished on application.
(tommonwealtb 36anh of Bustralia
All classes of GENERAL AND SAVINGS BANK business are trans-
acted in all the principal cities and towns of Australia. Rabaul and
London.
JAS. KELL.
Deputy Gci
DENISON MILLER,
fvworporatdd
Branches
Throughout
CmYtxda
THE MOLSdNSBANK
Capital and Reserve - $9,000,000
OVER 130 BRANCHES
TF you have a good business pro-
position and are seeking fin-
ancial advice, the knowledge and
wide experience of the Manager
of The Molsons Bank qualifies
him to give you a sound and
unbiased opinion.
EDWARD C. PR.ATT, General Manager
Where is Your Will?
How often have you heard, after the
death of a friend or acquaintance,
that his or her Will could not be
found. If you name this Company
Executor, your Will can be fyled in
our vaults free of charge and re-
corded. Thus you are ensured of
security of your Will and that the
terms of the same will be fulfilled.
THE BANKERS'
TRVST CDMBWlf
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
THE MONETARY TIMES
Volume 66.
ANOTHER ACTIVE INVESTMENT MONTH
MARCH bond sales were not equal to the large total of a
year ago, but were considerably in excess of the pre-
vious month, according' to the record of The Monetary Times.
The amount of securities absorbed in Canada last month,
however, was much larger than in March, 1920, when United
States investors took more than forty millions of the total
of offerings. Thus far this year nearly 70 per cent, has been
sold in Canada. The following is a comparative summary of
all borrowings for the month under review: —
Mar., 1921. Feb., 1921. Mar., 1920.
Government $10,,500,000 .$14,850,000
Municipal 5,671,037 $ 9,660,.50.3 8,646,566
Coiporation 7,425,000 8,000,000 1,115,276
Railroad 24,000,000
Totals $23,596,037 $17,660,503 $48,611,842
■>Koii\«'i':»>
Ont.irio ....
British Colu
Nova Scotiji
itob.T (Farm Loans)
NINK'irAIJTIliS
Ontario—
Port Colborne
Port Credit.. .
Miniico
Cochrane
Stratford
New Toronto
Eastview
Eastview
Toronto Township
Perth
St. Thomas
York Township
Sandwich
Toronto (Separate Schools) .
Chatham
Montreal (Prot. Schools).
Quebec I R.C. Schoolsl . . .
Sherbrooke -
6,(H)0 000
•2,000,000
1.500,000
New Rruiisn irk-
St. John (Schools)... .
East St. John School
Xova S<'»»(la-
Bridgewater
Bridgewater
North Sydney
Glace Bay
Prov. Highway Notes.
Halifax County
Manlloltn—
St. Andrews H..M
Orey R. M
Woodlands R.M.
Albert R. .\1
.S»hk.itcliewaii~
School Districts
Saskatoon
Rural Telephone Go's
GravelhoLirg
Star City R.M
Norton R. .M
iverrobert
Krlllsh 4'<
Point Grey ..
Point Grey . .
Trail
Cranhrook. . .
«'OltrOltATION
Shawinigan Water & Pow. Co. (1st ref'd mtg.)
t'raser Companies, Ltd
Clarke Bros. Paper Mills
P. T. Legare. Ltd
Pedlar People. Ltd
Western Quebec Power Co.. Ltd
I ..SOO.OOO
700,000
513.000
282,000
250,000
47,000
3,292,000
55,0011
10.000
51,500
100,000
25.000
20.000
50.0011
S3,000
73,000
37,000
30,000
1^'
B
6
a
5
TmiM (Vkars)
Basis
L:.i...wniT,.:,,s
Price
SOLU IN
U.S.
B months
'5 years
5 years,
S years
6.98
5.15
5.30
4,88
A. E. Ames & Company and Syndicate
Dominion Securities Corp., and Dillon, Re.ad & Co.
National City Company, Wood, Gundy tV- Company,
and E. H. Rollins* Son
National City Company
99.53
103.77
102.987
100.566
$
2,000,000
1,500 000
1,0!)0,(K)0
4,S0O,OIHI
6
6
6S
6
6
6i
6!
7
6
6
5i & 6
6
6
6
6
20 instalments
20 years
30 instalments
20 instalments
Various
20 years
20 years
20 years
20 instalments
30 instalments
Various
20 years
Various
20 years
Various
B.47
B.40
e'oo
6.58
6.83
6.83
6.15
6!io '
6.32
6.70
6.29
6.00
Harris. Forbes iS: Company. Incorporated
Neelys, Limited
C, H. Burgess & Company
Brent, Noxon & Company
Locally
Dominion Securities Corporation
Turner, Spragge & Company
Turner, Spra.<;ge & Company
Neelys, Limited
W. L. McKinnon & Company
McLeod, Young. Weir & Company
Dominion Securities Corporation
Wood, Gundy & Company
National City Company, Limited
Locally
Wood, Gundy & Company
'United Financial Corporation. Limited '.
Rene-T. Leclerc
Versailles. Vidricaire S Boulais
Provincial Securities Company
Locally
96.279
98.00
99.50
100.00
99.641
96.25
102.00
98,75
9S.64
97.379
95.17
96.79
6
6
6
Si
fi
6
30.yr. serial
10 years
10 years
Various
30 instalments
10 years
6.20
6.14
6.14
B.15
6.20
6.12 .
97.884
98.92
98.90
91.862
97.77
99.00
6
6
25 years
Serials '
6.05
Eostern Securities Company. Limited
J. M. Robinson & Sons
W, F. Mahon & Co., and the Royal Securities Corp.
W. F. Mahon & Co., and the Royal Securities Corp.
W. F. Mahon & Co., and the Royal Securities Corp.
Brent, Noxon & Company
Eastern Securities Company, Limited
Eastern Securities Company, Limited
99., 50
5
6
6
6
0
30 years
40 years
20 years
31) years
6.20
6.. 30
6.33
97.00
SI. 00
9C.00
98.63'
98.63
20 years
6.12
5J
54
t;
6
30 instalments
29 instalments
30 instalments
30 instalments
6.30
6.38
6.35
6.38
Wood, Gundy & Company
W. L. McKinnon & Company
Mutual Life Assurance Company
Edward Brown & Company
91.81
91.10
96.13
96 (10
Var.
6*
Var,
7
8
8
8
7
8
61
Various
20 years
3o''s'^ears
10 years
10 years
10 years
15 years
1(1 years
Var.
Var. '
Various
Saskatoon Sinking Fund Trustees
Various
C. N. McMannas, Moose Jaw-
Locally
C. C. Cross & Company
Locally i
H.J. Birkett &Com|ianv 1
Locally 1
Weyburn Sinking I-und
Various .
Si
fii*
40.years 1
35 years /
20;years
20 years
6.61
7.40
Canada Bond Corporation & Harris. Read & Co.
Canada Bond Corporation & Harris, Read & Co.
Gillespie. Hart & Todd
Brent, Noxon & Compani'
New York Syndicate <
Royal Securities Corporation and the L'nitcd I'inancial
Corporation. Limited
John Stark & Company
Versailles. Vidricaire & Boulais
H. J. Birkett & Company
Balfour, White & Company
84.49
78.40
96 00
6
8
7
7
8
30 years
20 years
15 years
Serial.s
10 years
6.75
8.10
'i'.m" '
8.0O :
8.25
2. .500,01 10
2„500.0(.ll
.
April 8, 1921
THE MONETARY TIMES
15
scanadian
^pacific/
Bureau of
Canadian
Information
T~'HE Canadian Pa-
cific Railway,
through its Bureau
of Canadian Infor-
mation, will furnish
you with the latest reliable information on
every phase of industrial and agricultural
development in Canada. !n the Reference Li-
braries maintained at Chicago, New York and
Montreal are complete data on natural resources,
climate, labor, transportation, business openings,
etc., in Canada. Additional data is constantly
being added.
No charge or obligation attaches to this service.
Business organizations are invited to make use
of it.
Canadian Pacific Railway
Department of Colonization and Development
165 E. Ontario St. 335 Windsor Station 1270 Broadway
Chicaj^o * Montreal New York
-HomeBankopCanada'
CHEQUES FOR TRAVELLERS
Travellers Cheques issued that will freely pass
as cash anywhere in Canada or the United
States. More convenient and safer to carry
about than ready money.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s-l2
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
hkad ofkicb, weyhl'kn. saskatchewan
Branches in Saskatchewan at
Weyburn. Yellow Grass, McTaggart, Halbrile, Midale
Gri65n. Colgate, Panginan, Radville. Assiniboia, Benson,
Verwood. Readlyn, Tribune, Expan.se, Mossbank, Vantage,
Goodwater, Darmody, Stoughton, Osage, Creelman, Lew-
van, Froude and Ardill.
A GENERAL BANKING BUSINESS TRANSACTED
H. O. POWELL, General Manager
TH€ M€RCHANT5 BANK
Head Office : Montreal. OF CANADA Established 1 864.
Capital Paid-up $10,029,622 Reserve Funds and Undivided Profits, $9,475,585
Total Deposits (31st January. 1921) $152,211,354
Total Assets (31st January, 1921)
$186,528,254
Board of Directort :
SIR H. MONTAGU ALLAN
SIR F Orr Ork-Lewis, Bart.
Hon. C. C. Ballantyne
Farquhar Robertson
Geo. L. Cains
.Alfred B. Evans
Vice-President
IHOMAS AHEARN
Lt.-COL. J. R. MOODIE
Hon. Lorne C. Webster
General Manager DC. Ma< arow
Supl. of Branches and Chief Inspector T. E. Merrett
General Supervisor ■ - - W. A. Mei.drum
P. HOWARD WILSON
E. W. Kneeland
Gordon M. McGregor
AN ALLIANCE FOR LIFE
Many of the large Corporations and Their banking connection is for life-
Business Houses who bank exclus- yet the only bonds that bind them to
ively with this institution have done this bank are the ties of service, pro-
SO since their beginning. gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 63 ana 65 Wall Street : W. M. Ramsay and C. J. Crookall, Agents
London, England, Office, 53 Cornhill : J. B. Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
16
THE MONETARY TIMES
Volume 66
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways for the month of March: —
Canadian Pacific Railway
1921. 1920. Inc. or dec.
March 7 $3,255,000 $3,244,000 + $ 11,000
March 14 3,176,000 3,130,000 + 46,000
March 21 3,211,000 3,283,000 — 72,000
Ma.rch 31 4,824,000 5,832,000 — 1,008,000
Totals $14,466,000 $15,489,000
Canadian National Railway
March 7 $2,049,345 $1,690,099
March 14 2,229,596 1,625,485
March 21 2,130,892 1,577,062
March 31 3,087,907 2,868,680
Totals ...:... $9,497,740 $7,761,326
Grand Trunk Railway
March 7 $1,764,250 $1,654,205
March 14 1,841,416 1,753,684
March 21 1,750,890 1,854,767
March 31 2,559,630 2,817,276
Totals $7,916,186 $8,079,932
— $1,023,000
+ $ 359,246
+ 604,111
+ 553,830
+ 219,227
+ $1,736,414
+ $ 110,055
+ 87,732
— 103,877
— 257,646
— $ 163,736
CONDITION OF BUSINESS
Commenting on Montreal trade conditions during the
past week, Dun's Review to-morrow will say: "The laying
of the channel buoys is being r.'Ctively prosecuted, and every-
thing will be in shape for the season of ocean navigation
by the beginning of next week, but the first trans-Atlantic
liner will only reach here about, the 25th inst. The St.
Lawrence canal system is also ready for service. Country
roads are in somewhat unsettled shape, but collections a-re
well maintained, and the week shows a mai'ked decline in
failures, only six district insolvencies being listed, with lia-
bilities of $71,000. The late fine weather has been beneficial
to the dry goods trade, inducing an increased flow of orders
by mail a.s well as from travellers. Nothing new is repoi'ted
in values, but there is still a shortage of some lines of staple
domestic cottons. Woollen men still complain of slow busi-
ness, but retail stocks of clothing are said to be showing
steady diminution, and manufacturers in that line are anti-
cipating better conditions. Grocery travellers are disposed
to grumble over light orders, but there is steady buying from
day to day and the aggregate of business is very fair."
Toronto conditions ai-e reported a* follows: "Whole-
salers, with few exceptions, do not make comparisons of this
year's sale total with that of 1920. To do so is unfair to
themselves to their travellers and to their business. Figures
recorded last year will be surpassed eventually, but just now
it is usually more pleasant and rea'sonable to compare 1919.
Some lines of merchandise are in very good demand, a much
better tone prevailing among retailers after a dull post-
holidr.'y week. Prints and ginghams are still scarce and sub-
stantial demand exists for marquisettes, foulards, etc.; the
warm bright weather stimulating call for light stuff. Rush
oi'ders have been received for oilcloths and linoleums. Wool-
lens are not brisk. Some improvement is evident in men's
wear and rain coats while practically all suppliers of ladies'
apparel are busy. Manufacturers of whitewear occasionally
have trouble procuring competent operators. Makers of
children's and boys' clothing receive some good orders. The
men's clothing trade brightened and prospects are a little
more promising. There has been a most gratifying improve-
ment in the boot and shoe trade and most Ontario factories
are operating profitably."
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended April 1, 1921,
in provinces, as compai-ed with those of previous weeks, and
corresponding weeks of last year, are as follows: —
Date.
Apr. 1
Mar. 25
Mar. 18
Mar. 11
O C
9 17
9 13
6 17
.14 13 0 0
0 0 38 16
WEEKLY BANK CLEARINGS
Bank clearings for the week ended April 7 are given
below, compared with the corresponding week last year.
Western figures are not available owing to storms: —
Week ended Week ended
Apr. 7, '21. Apr. S, '20. Changes.
Montreal $129,336,566 $108,718,415 + $20,618,151
Toronto 101,390,103 95,463,233 + 5,926,870
Ottawa 10,862,476 10,565,626 + 296,850
Hamilton 6,789,693 7,372,671 — 582,978
Quebec 6,819,552 6,158,588 + 660,964
Halifax 4,035,627 4,166,558 — - 130,931
London 4,761,993 3,814,508 + 947,485
St. John 3,819,133 2,905,136 + 913,997
Brantford 1,444,720 1,345,067 -\- 99,653
Peterboro' 1,201.951 922,164 + 279,787
Kitchener 1,119,658 1,290,984 — 171,326
Windsor 3,075,674 2,373,510 + 702,164
Totals $274,657,146 $245,096,460 + $29,560,686
Moncton 1,460,857
MONTHLY BANK CLEARINGS
The following are the bank clearings for the month of
March, compared with the same month last year: —
Week ended Week ended
March, '21. March, '20. Changes.
Montreal $455,162,615$ 568,452,098 —-$113,289,483
Toronto 403,675,308 439,181,926 — 35,506,618
Winnipeg 168,941,168 191,763,648 — 22,822,480
Vancouver 57,437,770 74,994,746 — 17,556,976
Ottawa 39,831,566 40,941,647 — 1,110,081
Calgary 27,805,902 37,403,388 — 0,597,486
Hamilton 24,751,828 31,324,956 — 6,573,128
Quebec 26,113,776 27,698,374 — 1,584,598
Edmonton 19,756,251 25,069,355 — 5,313,104
Halifax 14,542,134 19,820,570 — 5,278,436
London 13,670,567 15,572,717 — 1,902,150
Regina 15,279,167 17,681,764 — 2,402,597
St. John 11,813,280 15,039,493 — 3,226,213
Victoria . '. 9,785,899 12,150,766 — 2,364,867
Saskatoon 7,950,953 7,281,662 + 669,291
Moose Jaw 5,666,699 7,097,665 — 1,430,966
Brantford 5,338,434 6,031,500 — 693,066
Brandon 2,816,816 3,106,770 — 289,954
Fort William 3,706,311 3,486,860 + 219,451
Lethbridge 2,534,800 3,563,432 — 1,028,632
Medicine Hat 1,636,919 1,995,363 — 358,444
New Westminster. 2,529,194 3,149,518 — 620,324
Peterboro' 3,999,768 4,064,579 — 64,811
Sherbrooke 4,813,461 4,695,884 + 117,577
Kitchener 3,935,101 5,432,722 — 1,497,621
Windsor 11.835,218 13,631,266 — 1,796,048
Prince Albert . . . 1,588,688 2,112,950 — 524,262
Totals $1,336,919,593 $1,572,745,619 —$235,826,026
Kingston 2,951,976
Moncton 5,435,417
April 8, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 18171
PAID UP CAPITAL - - -
RESERVE FUND - - - -
RESERVE LIABILITY OF PROPRIETORS
^afej
AGGREGATE ASSETS 30th SEPT., 1920
357 BRANCHES
$ 24,655,500.00
16,750,000.00
24,655,000.00
$ 66,061,000.00
- $362,338,975.00
The Bank transacts every description
JOHN RL'SSELL FRENCH. K.B.E.. General Manager
States. New Zealand. Fiji. Papua (New Guinea), and Lond.
jn Banking Business. Wool and other Produce Credits arranged
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET. E.C.2.
Agests: rank OF MONTREAL. ROYAL BANK OF CANADA.
C. S. GUNN & COMPANY
REAL ESTATE, INSURANCE, RENTAL AGENTS
805 • Union Trust Building
WINNIPEG, MAN.
Members of Winnipeg Real Estate Exchange, Winnipeg Stock Exchiange
H Perc
A. GeoFi
T. J. M*(
K. A. Ma
E EUWARUS. F.C.A
. Edwards W. Pomkrov Morgan
■Edwards Oswald N- Edwards
iiARA T. P. Geggie
W. A. LOIUMRR
Arthur H. Edwards. F.C.A.
Morgan \V. Hbrdert Tiiomim
Charles E. White
J. L. Atkinson
John M. Edwards
EDWARDS, MORGAN & CO.
CHARTERED ACCOUNTANTS
OFFICES
TORONTO .. .. CANADIAN MORTGAGE BUILDING
CALGARY . .
VANCOUVER
WINNIPEG ..
MONTREAL
CORRESPONDENTS
HALIFAX. N.S. ST. lOHN, N.B.
LONDON, ENG. PARIS. FRANCE
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK. USA
ESTABUSHED 1879
Alloway & Champion
Bankers and Brokers
Members of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
When Your Will is Read
After your death it will be a matter of importance
to your heirs whom you have appointed as your
Executors and Trustees.
If you have appointed this Corporation with its
wide experience in estate management, which is
financially responsible, and bestows careful atten-
tion on every estate under its care, to whom your
heirs can go for friendly counsel at all times — they
will have absolute proof that you had their best
interests at heart when the Will was drawTi, especi-
ally in the appointment of the Executors and
Trustees to carry out its terms.
Consult us to-day regarding your Will.
All communications treated in strictest
confidence.
THE
ToroatoGeaeralTrusts
Corporations
Head Office: Cor. BAY and MELINDA STS., TORONTO
18
THE MONETARY TIMES
Volume 66.
CO-INSURANCE AND USE AND OCCUPANCY
Whether or Not Co-insurance Clause is Included Determines
Size of Premiums — Rating and Fireproof Properties
"/^0-INSURANCE, Use and Occupancy, and Other Im-
^ portant Phases of Fire Insurance," was the subject
of an address by G. J. Malcolm, branch secretary of the
General Accident, Fire and Life Assurance Corporation, be-
fore the Toronto Insurance Institute on March 17. In intro-
ducing his subject Mr. Malcolm said: —
"You all know what the Co-insurance Clause is, but it is a
peculiar thing that many insurance men find it very difficult to
explain, and there is quite a widespread idea that the clause
has not only to be explained, but also to be justified. I do not
know why this should be so except that it is pretty generally
misunderstood, both in its underlying principles and in its
operation. To understand it properly, it is no good analyzing
it grammatically; we have to get down to 'rock bottom,' and
'rock bottom' in insurance means, of course, the need for ade-
quate premium income, or, shortly, premiums.
A Question of Premiums
"It is obvious to the most untechnical person that if the
insurance companies do not collect sufficient premium to cover
their running expenses, their reserves, and, if they are lucky,
make a small profit, in addition to paying their losses, then
they cannot stay in business. It seems to me, however, that
instead of remembering this fundamental fact, too much em-
phasis is laid on the question of rates, which, after all, is a
secondary consideration, being only the most convenient way
of assessing'each assured by charging him a percentage of his
insurance in order to arrive at the premium which he has to
pay the insurance companies.
"When explaining the Co-insurance Clause I prefer to put
the emphasis on the premiums that the companies must derive
from the insurance carried, and for the following reasons :
"Although the fire companies cannot arrive at an accurate
table of experiences, such as governs a life company's rate-
making, yet by tabulating our experience we can arrive at a
pretty fair idea of the amount of loss that any class of risk will
show in a year. It is, therefore, theoretically, comparatively
easy to state how much premium the companies must collect
on that class of risk in order to enable them to pay their losses
and carry on business, and come through with a small profit.
From this it follows that, looked at from the insurance com-
panies' point of view, the normal rate for any class of risk is
really the co-insurance rate, for, assuming that each property
owner is complying with the terms of the co-insurance clause,
the co-insurance rate can be arranged to produce sufficient
premium to enable the companies to show a profit. If, how-
ever, the majority of property owners prefer not to carry the
Co-insurance Clause and elect to insure for only a nominal per-
centage of their insurable value, it is obvious that, as this will
not make any difference to the amount of loss sustained on the
class, but on the other hand will greatly reduce the total
amount of insurance written, in order to obtain adequate pre-
mium out of this reduced amount of insurance, the companies
have to increase the percentage charged to each assured. In
other words, they have to put up the rate.
"Premium income is what we must have, and if the large
majority of assured are underinsured then it will appear that
eadi is paying more than his share of the total premiums, be-
cause his premium will bear a higher proportion to the amount
of insurance he carries — but his rate is only larger because
his insurance is smaller.
Adjusting the Rates
"We sometimes have rating committees attempting to
adjust the rate (on the contents, say, of fireproof buildings),
and to fix a graded scale of credits and increases proportionate
to the amount of co-insurance carried. One such table that
has recently been published takes the 80 per cent, co-insur-
ance rate as the normal; if 90 per cent, co-insurance is carried
the rate is reduced 5 per cent.; and if 100 per cent., or full
co-insurance is carried the rate is reduced 10 per cent. On
the other hand, if the amount of co-insurance is less than 80
per cent, the rate is increased in a fairly rapidly rising scale,
but in the opinion of our C. F. U. A. Rating Committee, the
rate of increase is not nearly sufficient in the table I have in
mind. I have not been able to find out the principle upon
which the scale to which I am referring was built up, but the
basic principle that must underlie all such attempts is what I
have been trying to make clear above, viz., that a certain total
of premium must be derived from policies covering on con-
tents of fireproof buildings in order to cover all the outgo con-
nected with such insurance.
"If 80 per cent, co-insurance is carried it is a fairly simple
matter to strike the percentage that must be paid by each pi'op-
erty owner, and you will note that the rule in Ontario is that
every policy covering on fireproof property must carry co-in-
surance. The assured do not understand this, however, and
think that we should be able to name a rate that would allow
them to carry just sufficient to cover their anticipated loss in
any fire, but they would not be any better off with such a rate
as it would have to be high enough to produce the same pre-
mium from the reduced amount of insurance that the com-
panies would have obtained from insurance subject to 80 per
cent, co-insurance, and this is where the table to which I have
referred seems to fall down.
"Our C. F. U. A. Rating Committee is of the opinion that
if only 50 per cent, co-insui-ance is carried the 80 per cent, co-
insurance rate should be increased at least 50 per cent., as
against the 24 per cent, increase shown in the table, and if 20
per cent, co-insurance only is carried then the increase should
be 300 or 400 per cent., as against 87% per cent, in the table,
while it is almost impossible to fix the rate for so small an
amount as 10 per cent, co-insurance, as this is about the aver-
age total loss to be expected in fireproof buildings, and the
increase of 200 per cent, shown in the table is absolutely
absurd and would never begin to produce the necessary amount
of premium. As a matter of fact in Ontario we do not favor
the graded scale at all.
Fireproof Properties
"A little earlier I said that in Ontario every policy cover-
ing on fireproof property must carry co-insurance, but every
decent rule has its exception, and this one has its exception in
a kind of compromise. Instead of containing a Co-Insurance
Clause certain policies can be made subject to a warranty that
a certain fixed minimum amount of insurance will be carried,
and you will notice that the object of such a clause is to ensure
that the companies shall derive adequate premium from the
risk, which, as I have just pointed out, is the true function of
the Co-insurance Clause.
Penalties
"So much for the idea underlying co-insurance; but as
regards the penalty part of the clause I must say I have never
been able to understand where the difficulty comes in.
"It is true that the various legislatures, both here in Can-
ada and across the line, have sun'ounded the clause with such
a close network of solemn regulations that you are almost
forced to think it must be a very dangerous element, but if you
come to think of it, the real reason for putting a wire guard
in front of the nursery fire is not to keep the fire in but to
keep the children out. And 'the children' in this case is the
poor dear assured, the public. In all business contracts ex-
cept an insurance policy a man is supposed to read them before
accepting them, and it is a cardinal first principle of any lawful
contract that, if a consideration is granted by one party and
accepted by the other, the special undertaking for which the
consideration passed is not only absolutely binding on both
parties, but is also thoroughly understood by both.
"An assured, however, is assumed by a paternal govern-
ment to be congenitally incapable of understanding so abstruse
a problem as an* insurance policy, so, to protect him from the
sharklike practices of the greedy companies, we are forced to
use different colored inks and conspicuous rubber stamps all
over our policies. Even the Judicial Committee of the Privy
Council can't keep out of the game, but, like a good, kind
great-grandfather, has to mumble a few words of warning.
April 8, 1921
THE MONETARY TIMES
Money Is Worth More to You, Too
e interest on loans to-day. So why shouldn't you
I your savings deposits ?
You
uldn t .
then, should yoursavi
The Union Trust Company will pay you interest at 4% per annum,
compounded regularly. Come and open your account here. If you
cannot conveniently call, open your account by registered mail.
Deoosits promptly acknowledged and withdrawals hy mail accur-
ately and safely dispatched.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS
Winnipeg TORONTO London, Eng.
When selecting a Trust Company as an Executor
choose one whose fixed policy is to give
FINANCIAL ASSISTANCE
To Estates being adtninistered by it.
CAPITAL. ISSUED AND SUBSCRIBED ..§1,171,700.00
PAID-UP CAPITAL AND RESERVE 1,172,00000
The Imperial Canadian Trust Co.
Ezecntor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE: WINNIPEG, CAN.
The Cost of
Our Service
The amount allowed by the Court
to an executor for administering
an estate is no more if the executor
is a trust company than it would be
if the executor were an individual.
The wide organization and skilled
staff of this Company contribute
to making its administration more
satisfactory than personal adminis-
tration.
Write for Bool(lels
about our service.
National Trust Company
Limited
Paid-up Capital and Reserve ■ $4,000,000
Assets under Administration over • $94,000,000
18-22 KING STREET EAST - - TORONTO
Providing for Education
lu limes of prosperity make certain that the education
of your children will be provided for in case of a reversal of
fortune. By placing a trust fund with us for investment,
an income can be provided to begin at any time and be
administered under any conditions you see fit to incorporate
in the agreement Write ii<i for partiinilars
Chartered Trust and Executor Company
46 KING STREET WEST, TORONTO
JOHN J. GIBSON, .Managing Director.
Saskatchewan General Trusts
Corporation, Limited
Head Oilice : Kegina, Sask.
Executor Administrator Assignee Trustee
Special attention given Mortgage Investments, Collections,
Management of Properties for Absentees and
all other agency business.
BOARD OF DIRECTORS:
W. T .MOLLARD. President (!. H. DARK, K.C, Vice-President
H. E. Sampson, KC. A. I,. Oordon, K.C. J. A. M, Patrick. K.C.
David Low, M.D. W. H. Duncan J. A. ItlcBride
Chas, WillouKhby William Wilson
E. E. .MURPHY. General ManaRcr
Official Administrator for the Judicial District of Weyburn
(Trustee under Bankruptcy Act)
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
The Security
Head Office
Trust
Company,
Calgary,
Limited
Alberta
Liqaidator, Trustee, Receiver
Administrator, Executor.
Stock and Bond Brokers,
General FioaDcial Ageott.
W. M. CONNACHER
Pres. and .Ma
naging Director |
Your friend and
The Canada Trust Company
Should you wish to have a friend act as executor
without burdening him with book-work and other
details this can be arranged by naming The Canada
Trust Company co-executor.
Competent and careful accounting is essential to
the proper management of your estate.
The Canada Trust Qi^vPANY
■' The Executor for Your Estate. '
London. Toronto, U indsor. Chatham, St Thomas. Ontario ;
Winnipeg. Man, : Regina. Sask. : Edmonton, Alta.
20
THE MONETARY TIME.S
"Anyway, I am digressing, and my point is, that for a con-
sideration the assured agrees to carry a certain percentage of
insurance to insurable value of his property. If he is a wise
man he immediately obtains the necessary cover in one or more
regular insurance companies and when a loss occurs all he has
got to do is to produce his policies and they will all contribute
their share of the loss; if he is a fool, or a child, and willing to
take a chance in the hope of saving a little premium, then he
canont grumble if he is asked to take the place of the insur-
ance companies that might have had his risk, and is requested
to contribute his pro rata share of any loss that may occur.
It is really very simple, and the question for an assured to
consider is not so much, 'How will the Co-insurance Clause
affect me if I have a loss?' but 'Are the conditions of my busi-
ness and my accountancy system such that I can readily arrive
at the value of my property at any time and can thus be sure
that I am cari-ying sufficient insurance?'
Use and Occupancy
"I think that's enough about ordinary co-insurance, but we
can pass easily on to Use and Occupancy if we remember that
every properly drawn Use and Occupancy contract should have
the principle of co-insurance implied in itself, although as you
are well aware, the Co-insurance Clause, as such, is not ex-
pressed in so many words in a Use and Occupancy policy.
"And here let me sound a warning — there is no effect of
co-insurance, either implied or otherwise, in any Use and Occu-
pancy policy, however drawn, that omits the great equalizing
factoi-, the "limiting of the per diem recovery or indemnity to
l/300th (or l/365th) of the full amount of the policy. I don't
think I need enlarge upon this point, however, as it is one
that is handled by every man that ever wrote upon the subject,
and I want to be original in something.
A Recent Example
"There is a very interesting development of this principle,
however, in a recent loss settlement in which only a few offices
(and those chiefly in Montreal) were interested, and I should
like to give you a short report on its chief items of intei-est.
(It is not altogether a standard example, as the form of con-
tract, while following closely the C. F. U. A. recommended
form, contained a variation with regard to increased cost of
working modelled on the English form.)
"The English form seeks to make it binding on the assured
to use every means in their power to get back to full normal
production again, either in the original premises, or in others
found suitable, but as it is plain that such extra effort will
entail possibly considerable extra expense, which it would be
unfair to' force the assured to carry themselves, the clause pro-
Wdes that: 'In this connection the companies undertake to pay
to the assured their pro rata share of such sums as the assured
shall necessarily pay for increase in cost of working.'
"After the fire occurred the experts employed by the com-
panies and the assured decided that the factory and machinery
could be put into running order in 130 days. The assured
found, however, that they were able to rent and equip other
premises which would put them in the position of carrying on
their normal business immediately, and as a result the inter-
ruption of the assured's business actually only lasted a few
days.
"The output of the new premises, however,- was not as
great as the original output of the destroyed factory. So far
as the loss of net profits was concerned, however, the com-
panies had to pay the reduction between the original normal
and the new total in the new premises, which amounted to a
reduction of 67 per cent, from the normal for twenty days, and
a reduction of 18.3.5 per cent from the normal for 110 days.
The full normal daily profit prior to the fire was $190.00, but
the daily indemnity stated in the insurance policies was only
$80.00, so that the loss to the insui-ance companies was not
total, but was 67 per cent, of the daily indemnity of $80.00 foi
twenty days, and 18.35 per cent of the same figure for 110 days,
and the assured was co-insurer for the difference."
AN ADVERSE BALANCE OF SEVENTY-FIVE MILLIONS
Twelve Months' Trade Figures Reflect This Result— Exports
Down and Imports Up
TRADE figures for the twelve months ended February,
1921, indicate that Canada will close the fiscal year
withf an adverse balance, although the position in this re-
gard will not be quite as anticipated some months ago. In
recent months our trade has been maintained on a more
equitable basis, but the tendencies which developed early in
1920 and continued right up until the crop moving season,
resulting in the accumulation of a large excess of imports
over exports, have not been largely offset.
Comparison With 1920
Over a period of a year, imports have increased about,
$200,000,000, which advance is largely accounted for by
larger purchases from the United Kingdom and the United
States. In the case of the latter country, the increase in
imports was accompanied by a similar increase in exports,
but not so with the former. Britain's purchases from the
Dominion have decreased by about $185,000,000 in twelve
months, but this was scarcely preventable in view of the
discount of the pound sterling here.
Altogether exports have declined by about $32,000,000.
The United Kingdom and France show the most notable de-
creases, while the United States, Belgium, Italy and the
Netherlands, chiefly, have become more valuable customers.
The following figures, prepared by the Dominion Bureau
of Statistics, gives details of our trade with other countries,
for the period mentioned, with comparisons:
FOR Consumption
Twelve Months ending February
1919
528,023.641
407,242,831
nports Cmdse.) 935,266,472
Duty collected.
Total exports (mdse.).
Imports by Coun
United Kingdom
Australia
Britisli East Indies
British Guiana
British South Africa ...
British West Indies
Hong Kong
Newfoundland
New Zealand
Other British Empire ...
Argentine Republic
Belgium
8r
China
Cuba
France
Greece
Italy
Japan
Netherlands
United States
Other Foreign Countries.
Exports by Coun
(Canadian Produo
United Kingdom
Australia
British East Indies
British Guiana
British South Africa
British West Indies
Hong Kong
Newfoundland.
New Zealand
Other British Empire
Argentine RepubliL
Belgium
Brazil
Chi.
Cuba
France
Greece
Italy
Japan
Netherlands
United States
Other Foreign Countrie
74,811,994
4,974,470
16,190,976
6.433,167
1,291 .01 6
8.857,904
2,280,156
3,141.673
7,901,813
1 ,073.809
1,353,964
6.748
1.269.562
1,989.186
2.649,763
3,707,994
18.927
600.087
13.412.873
501,998
784,216,304
18,582,088
546,790.141
13.220,983
3.430,791
2,371,791
11,505,363
9,526.,521
1,011,844
11,464,755
5,162,704
2,628,644
4,043,755
772,531
4,021,616
2,785,289
5.353,107
96,404,532
18,225
14,192,238
1 1 ,289.097
564,225
454,898,642
14.859,638
1927i
106.799,857
1.433,770
14,868,960
6,928,103
720,426
11,100,714
2.096.263
2,020,699
3,383 923
1,180,462
2,603,792
717,080
1.765,357
1.121.387
13,712,529
8.821,322
612.462
836.160
13.489,371
1,999,197
763,097,561
34,566,608
507,092.308
12,388,774
6 604.208
3.150,781
8,788.208
11,100,769
1,038.436
15,464.670
7,697,829
7,661,324
6,362,788
25.017,629
2,309,134
5,786,319
5.655,4.52
66.541,164
26,327,664
17.004.713
7.500.766
5.211,006
456,667 986
40.959.672
1,290 067,546
223,001,254
833,108
15.878,228
8,727,473
177,310
16,008,677
4,586,070
3.035,927
4.470,424
1,867,527
3.154,657
4,552,148
2.311.436
1.942,591
32.879,161
19 811,306
899,041
1.841,190
11,956,093
3,968,432
887,380,983
40,782,510
322,563,091
17,321,585
6,543.815
3,656,834
14,665,695
13,247,547
2,340 115
17,458,319
11.566,4.56
4,518.322
7,801.733
43,340,193
3,253,969
5,977,197
7,210,351
27,039,806
23,684,820
53.484,400
6,979.784
20 351,743
S51. 678.226
49,520,131
April 8, 1921
THE MONETARY TIMES
The Service of an Expert
The management and investment of funds needs the judgment of an
expert. Amateurs sometimes succeed;— on the other hand, they often fail.
The property which is to yield an income to your family after your
death:—
The Trust Fund which is to yield an income to a person or cause dear
to your heart; —
Even the investments which yield you your present income ;—
All need the expert management, the extensive knowledge, the pru-
dence and foresight, which
The Canada Permanent Trust Co.
can give them.
Through its hranches throughout Canada, thrs Company is in touch
with business conditions from the Atlantic to the Pacific. It is not only
in a position to care for your present property, but to make further in-
vestments tor you which shall be both safe and profitable.
Whether as Executor. Trustee. orVinancial Secretary, this Comp.iny
is in a position to render you and your family a valuable service.
The Canada Permanent Trust Company
Paid-up Capital 14 TORONTO STREET
Sl.OOO.OOO TORONTO
Manager. Ontario Branch : A. E. Hessin
INCREASED PROTECTION FOR DEPOSITORS
The addition of S'iSO.OOO to our Reserve Fund out of
last year's earnings increased that Fund to 86.000.000 which
is equal to the Paid-up Capital-
Our depositors, therefore, have the protection of Twelve
Million Dollars of Shareholders' capital.
Open your account with the institution that has been
doing business in Toronto for more than sixty-five years and
has safe-guarded and helped to increase the savings of many
thousands of thrifty Toronto people, whose confidence it has
had for this long period,
■^'ou will receive interest at
THREE AND ONE-HALF PER CENT.
per annum, compounded half-yearly—whether your balance
he large or small-
FuU privileges of cheque withdrawals.
Canada Permanent Mortgage Corporation
Eflablifhed
14-18 TORONTO STREET
TORONTO
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
.Masonic Temple Building. London, Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PLRDOM. K.G.. President .NATHANIEL .MILLS, .Manager
London and Canadian Loan and Agency Co., Limited
i:sT,»Bi.isiii:i) IS73 51 YONGE ST.. TORONTO
Paid-up C:ipit:il.Sl.'iSO,IIOO. Reserve Fund. Sl.OdO.OOO. Total Assets. .■'i.OliT.JM
Debentures issued, one hundred dollars and upwards, one to five years.
Best current rates. Interest payable half-yearly. These Debentures arc an
Authorized Trustee Investment. .Mortgage Loans made in Ontario. .Mani-
toba and Saskatchewan.
\VI LI.IAM WEDD, Secretary V H. WAUSWORTH, Manager
^"^ Ontario Loan
& Debenture Co.
LONDON iNCORrORATED IS70
C.\riT.\l, And Reserve Fi-nd
Canada
»4,000,000
5-;i
SHORT TKRM (1 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
511
JOHN McCt-ARY. President
A. M. SMART. .Manager
/^VER 200 Corporations,
^^^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office, No. 13 Toronto Street
Capital Account. »;»».»50.(MI Reserve Fund. *ti;«.«<l".<M»
Total Assets. »:«,i49,154.-i«
President. WELLINGTON FRANCIS. Esq.. K.C.
Vice-President. HERBERT LANGLOIS. Esq.
Debentures issued to pay .V'i,. a Legal Investment for Trust Funds.
Deposits received at 4% interest, withdrawable by cheque.
Loans made on improved Real Estate on favorable terms.
WALTER GILLESPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inquiries Invitmd
General Manager Lieut. -Col. G. H. DORRELL
Canadian Guaranty Trust Company
HEl/VD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office - - Swift Current, Saskatchewan
JOHN R LITTLE. Managing Director
22
THE MONETARY TIMES
Volume 66.
THE FINANCING OF PUBLIC UTILITIES*
I'ublic Control a Stabilizing Factor — Reasons for Issue of
Senior and Junior Securities — A Fair Apportion-
ment of Capital
By H. J. Pratt
Nesbitt, Thotnson and Co., Montreal
•*"T1HESE utilities, or as I prefer to call them, 'servants
-■■ of the public,' are such an indispensable need of our
daily life that it is impossible to conceive what fearful chaos
and confusion would result if we were suddenly deprived
of their service. In the past five years the treatment meeted
out to these services has been somewhat in the nature of
that accorded to the mule whose nigger ovnier called him
'Old Utility,' because he had been kicked about from pillar
to post, but still went on doing his 'durndest.' It is hard to
understand this attitude on the part of the public — an atti-
tude, however, which I am glad to say is rapidly changing —
for it is not the attitude of an individual to a tried and faith-
ful servant whose welfare and interest we are ever ready
to protect.
"It is ti-ue that in the past many abuses crept in with
regard to the operation of public utility companies through
over capitalization and inordinate profits, and the security
holders' interests seemed to be of more interest than the
public's. This condition of affairs brought into being regaila-
tory commissions, which when they function properly, act as
a balance wheel between the public and the companies— in-
suring a square deal for botli — raising- or lowering the rates
in accordance with the cost of operation.
Control of Utilities
"This control taken in conjunction with the allowance of
a fair return on the capital investment in the company's
property, not by any means in the amount of its securities,
but rather in the replacement value of its property, brings
about an ideal condition of affairs. It enables the company
on account of the guarantee of a fair return on its invested
capital, to go into the money markets of the world and bor-
row money freely for necessary extensions and improve-
ments to its service, for nothing causes capital to be more
timid than a feeling of instability about its investment.
Under the above-mentioned regulations public utility securi-
ties should be second only to the basis of the securities issued
by the municipality in which it operates.
"Regarding the financing of our public utility companies,
and more pai-ticularly our water power developments, much
has been done in the past by the issue of bonds which were a
mortgage on the whole property. Just as a loan company
will not lend more than, say 60 per cent, of the value of a
piece of property, so it would seem to be the part of good
financing to issue bonds up to, say 60 per cent., of the amount
required, and to accomplish the balance by the sale of equal
amuonts of preferred and common stock which on the basis
of $1,000,000 capital would be $200,000 each, of preferred
and common. This places an equity of 40 per cent behind
the bonds, and renders them more readily saleable, and at a
better price than if this equity did not exist.
Bond Issues Necessary
"No doubt, financing- by preferred and common stocks
would be the ideal method of financing, as there are no sink-
ing fund or maturing obligations to provide for, but as in-
surance companies, banks, and trust companies are not able
legally to invest in these stocks, or in the case of preferred
stocks till they have paid dividends for five years; and as
they are large buyers of this class of security, it is necessary
to issue bonds.
"These junior securities, on account of the extra risk
involved, should be entitled to greater remuneration, and it
is interesting to note that on a capitalization, say of one
*Part of an address before an Electrical Co-operative
meeting in Montreal, March 23.
million, allowed to earn 8 per cent., 60 bonds, 20 preferred
and 20 common, after 6 per cent, on bonds and 7 per cent,
on preferred, it would leave 15 per cent, for the common
stock. As one authority has put it, it is only proper for a
third security like common stock, wth bonds and preferred
ahead, to get a large return if the enterprise pi-oves com-
mercially feasible, because the common stock is the keystone
of the arch. Unless common stock money can be obtained,
and it cannot if the reward is not great enough for the
I'isks involved, preferred stock money and bond money would
be just that much harder to raise. Of course, the greater
the equity behind the bonds the easier it would be to float
a further bond issue, and at a better price.
"This method of financing has been successfully operated
by several large companies in the United States through
what is known as the customers' owner ship campaign,
whereby the users of light and power are induced to become
stockholders, the idea of community ownership appealing
sti-ongly even to the most radical elements, as it approxi-
mates their ideas and principles, while it operates in the
strongest way possible to disarm political interference, a
burglar which so many corporations have suffered from.
"It is hardly necessary for me to say that the develop-
ment of our water powers is of paramount importance to the
progress and economic development of our wonderful coun-
ti-y and its wonderful resources. In every case where the
harnessing- of falling water has been accomplished, a bee-
hive of industry and increased population results, and wealth
and prosperity abound. It is a recognized fact that the pro-
gress of a city depends absolutely upon the supply of
electrical power, and any obstacle placed in the way of re-
tarding electrical development is a serious detriment to the
interests of anv community."
PUBLICATIONS RECEIVED
A Study in Canadian Immigration. — By W. G. Smith,
associate professor of psychology, Toronto University. The
Ryerson Press, Toronto, 406 pp., with index.
"At best, it is a chapter of tragedy and mismanage-
ment," is the concise remark of C. K. Clarke, regarding
Canadian immigration, in a foreword to this book. This is
in spite of the fact that $6,779,832 was spent in a single
decade in promoting and regulating the inflow of population.
Professor Smith discusses the subject in an instructive and
interesting way. After tracing the history of immigration
into Canada, he goes fully into the immigration law of 1910
and the tide of the past decade. Then he proceeds to
analyse the incoming population by racial groups and by de-
fectiveness or criminal tendency. The book is well illustrat-
ed by tables.
Moody's Analyses of Investments — Governments and
Municipals. — Moody's Investors Service, 35 Nassau St., New
York, and Sun Life Bldg., Toronto; 1363 pp., $15.
This volume, which is Part IV. of Moody's Analyses of
Investments, is uniform in size with the other parts, which
are well known to Canadian dealers and investors; while the
volume on governments and municipals is one of the newer
branches of the work, it has already passed through several
editions, the new one being revised and enlarged. It is
divided into four sections, the first dealing with the United
States government and its dependencies, tlie second with Am-
erican states and municipalities, the third with the Dominion of
Canada, its provinces and municipalities, and the fourth with
foreign governments and municipalities. A complete index
of all governments and municipalities analysed is included,
and a system of rating similar to that adopted for other
kinds of securities is used.
The Canadian section comprises 115 pages. Brief
statistics of revenues, expenditures, debt and assets are
given, but the feature which inakes the book of special value
to dealers and investors is the detailed list of securities,
showing amount, rate of interest, maturity, where payable,
rating, etc.
April 8, 1921
THE MONETARY TIMES
" With the crime wave that is
now spreading over this
continent we cannot take too
many precautions to prevent
the burglarizing of our vaults."
— Times.
Wobbed!
We never stop to consider the possibility of our own vault being
robbed. We read about other vaults burglarized, money and
valuable papers stolen and perhaps murder committed.
But, what would you think on opening your Bank or office in the
morning to find burglars had broken into your vault during
the night and stolen yonr money, notes, bonds and destroyed
valuable papers.
With the crime wave at present spreading over the continent
this might happen any night.
Burglar Proof
'Y^niLX Lock
Defies every method of attack of the most experienced cracksman.
It automatically locks all the bolts on the door when the regular
combination is destroyed. It stops the burglar at the vault door
and guarantees absolute safety and protection for your
valuables.
WriU for complete information :
Arthur Gravellb & Sons, 212 Plaza Bldg., Ottawa. Out.
Sole Canadian Distributors for
Dillon Lock Works, Fort d;odge, Iowa.
Also Makera of Ehclrltal Prottctlfc E<iuipmtnl for Eetry Bank NeeJ.
Illlllllllllll
THE MONETARY TIMES
Volume 66
MARCH FIRE LOSSES WERE HIGHER
Estimated at $2,112,200, Compared With $1,793,200 in March,
1920, and $2,735,500 in February, 1921
Toronto, Ont., March 19, clothing caught fire ■ 1
London, Ont., March 26, burnt in bed 1
Clyde River, N.S., March .'U, burnt in building 2
MRE losses in Canada in March are estimated by The Mone-
tary Times at .$2,112,200, made up as follows!—
Fires exceeding $10,000 $1,540,000
Small fires reported 72,200
Estimate of unreported fires 500,000
Total $2,112,200
This makes a total of $7,085,600 for the first three months
of 1921, compared with $6,326,625 for the same period last
year.
The Monetary Times' record for the past four years shows
the following monthly losses: —
1921.
2,237,900
2,735,500
2,112,200
Month.
1918.
1919.
1920.
January
. $ 2,688,556
$ 3,915,290 $ 2,637,850
February . .
2,243,762
1,091,834
1,895,575
March . . .
. 1,682,286
2,154,095
1,793,200
April . . . .
. 3,240,187
1,080,070
3,229,500
May
3,570,014
1,785,130
2,001,819
June
3,080,982
3,337,530
1,424,319
July
3,369,684
1,118,377
1,426,850
August . . .
3,110,445
1,374,495
1,857,800
September .
917,286
1,940,272
2,480,485
October . . .
. 5,119,145
1,023,288
2,467,901
November .
. 1,059,580
2,339,870
2,769,800
December .
1,733,917
2,047,496
3,721,475
TotaJs . . !j,31,815,844 $23,207,647 $27,706,574 $ 7,085,600
List of Large Fires
The following are the March fires causing damage of
$10,000 and over:—
London, Ont., March 1, business block, $15,000.
Alexandria, Ont., March 3, business section, $60,000.
Odessa, Sask., March 7, hotel, $15,000.
Kitchener, Ont., March 9, business block, $10,000.
Brandon, Man., March 10, business block, $10,000.
Yarmouth, N.S., March 10, court house, $20,000.
Winnipeg, Man., M&rch 15, elevator, $50,000.
Grande Prairie, Alta., March 18, store, $100,000.
New Toronto, Ont., March 19, factory, $15,000-
St. Scholastique, Que., March 19, buildings, $18,000.
Brittania Beach, B.C., March 20, plant, $750,000.
Cayuga, Ont., March 21, high school, $30,000.
Blackie, Alta., March 23, business section, $72,000.
Hamilton, Ont., March 25, warehouse, $50,000.
Nanaimo, B.C., March 25, store, $40,000.
Bathurst, N.B., March 26, hotel, $25,000.
Ottawa, Ont., March 26, bake shops, $100,000.
Coatsworth, Ont., March 27, store, $20,000.
Capreol, Ont., March 28, business section, $60,000.
Moncton, N.B., March 28, warehouse, $80,000.
Among the causes reported were: Overheated stoves, 4;
explosions, 2; spontaneous combustion, 2; sparks, 1; cigarette
butt, 1; furnace, 1; lightning, 1; oil lamp, 1; hot ashes, 1;
electrical origin, 1.
The following structures were destroyed or damaged:
Residences, 19; buildings, 19; stores, 15; automobiles, 8;
garages, 7; barns, 7; business blocks, 4; warehouses, 4; hotels,
3; post offices, 2; mills, 2; bakeries, 2; restaurants, 2; station!
1; theatre, 1; elevator, 1; court house, 1; farm building, 1;
school, 1.
The following is a list of deaths from fires during
March : —
Montreal, Que., March 2, clothing caught fire 1
Choisy, Que., M&rch 15, clothing caught fire 1
Dundum, Sask., March 16, burnt in building 1
Sault Ste. Marie, Ont., March 17, burnt in building 4
Comparison of Deaths
The record of deaths from fire has been as follows: —
Month. 1914. 1915. 1916. 1917. 1918. 1919. 1920. 1921.
January 26
February 18
March 27
April ...
May
June ...
July ....
August
September
October
November
December
26
3
10
21
28
13
22 17
18
11
23
19
87
26
30 18
27
23
23
20
34
9
35 11
22
14
6
15
7
27
8
8
5
14
12
10
15
13 .
12
2
6
9
9
28
15 .
8
13
268
19
6
11
15 .
3
14
30
12
7
24
14
9
27
6
21
13
23
13 .
9
7
39
23
11
16
13 .
14
12
12
21
3
14
31 .
19
11
94
15
26
19
18
Totals
175 142 531 207 241 225 227
GOVERNMENT CURRENCY
There was a further decline of some $3,500,000 in Dominion
government note circulation in February, 1921, as compared
with the previous month. Since the peak was reached last
November, there has been a decline of nearly $37,000,000. At
the same time there has been an increase in gold held against
notes outstanding of more than $3,000,000. In February the
increase in gold over the previous month was about $1,000,000.
In February, 1920, the circulation was $305,404,160, against
which was held $105,609,980 in gold, and $151,064,375 in ap-
proved securities. Figures for the same month this year are
as follows:
27.743 25
I.:ra2,748 67
;.356.00l 50
!,777,208 50
37,623 00
!,256,895 00
3. SOU 00
sioo
S500
$1,000
S.iOO Legal Tende
$1,000
$5,000
S50.000 "
Si.
Notes for Banks.
$5...
SIO..
820 . .
8,50..
S.iOO
2.752,500 00
5.066,000 00
70.000 00
1,004,000 00
. 204.440.000 00
43.100.000 00
$290,194,519 92
11,293 50
6,060 00
4,219 75
2,180 00
840 00
650 00
2,500 00
Gold held Feb, 28th, 1921. by the Minister of Finance
Gold reserve to be held on Savings Banks Deposits —
10 p.c, on $38,725,503,53 under The Savings Banks Act..
8103,022,079 96
3,872,550 35
Gold held for redemption of Dominion Notes * 99.149,529 61
Dominion Notes outstanding against deposits of approved secur-
ities, under Finance Act. 1914 8137,115,075 00
COBALT ORE SHIPMENTS
The following are the shipments of ore from Cobalt
Station for the week ended April 1: —
Bailey Silver Mine, 93,285. The total since January 1
is 2,056,511 pounds, or 1,028.2 tons.
The "Nor'Wester" is the title of a publication just com-
menced by the Northwestern Life Assurance Co,, for its
staff and field force.
April 8, 1921
THE MONETARY TIMES
illillllMIIIIIIIIIIIIIIIMIMMiniMIMIMIIIIIIIMMIIIIIIIIIIIIIIinMIIIIMMMIIIIIMIIIIIIIIIIIMIIMIIIIIMIIIIIIUMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIi:
I CHARTERED ACCOUNTANTS [
nllllllllllllllllllllllllllllllMIIUIIIIIIMIIIIIIIIIIIIIIIMIIIIIIIIIIIIIMIIIIIIIIIIIIIIIMIHIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIMMIIIIIIIIMIIIIIIIIIIIIIIIl^
KENNETH BOWMAN
Chartered Accountant
(Successor to Bjldwin. Dow & Boufiunl
EDMONTON - ALBERTA
CHARLES D. CORBOULD
Chartered Accoontant and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
Correspondents at Toronto, London, Eng-,
V:
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
BraDch at Naaaimo, B.C.
Crehan^ Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON - ONTARIO
i:stablished 188J
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Cbamberi
Winnipeg, Man.
W. A. Henders..n. C.A. J. J. Cordner. C A.
(Vmlip- Wi
rn Union Code
Arthur E. Phillips & Co.
Chartered Accountants
508-509 Electric Railway Chambers
WINNIPEG - Man.
C.ihlc- Address—" I'nrnvel. ■
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS,
24 King Street West - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Chartereil Accountants. Auditors,
Trustees. Litjuidators
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thome, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Specialists on Factory Costs and Prodlction
Phone -1400 Bank of TORnNTO
Main OI^U Hamilton Bldg. * '-'tVUl'N 1 W
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING TORONTO, CANADA
llES GRANT
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON,
GORDON & DILWORTH
Charte
red Accountants. Trustees.
R
eceivers. Liquidators
Merchants Bank Bids-.
IS Wellington Street West Toronto
E. R. C. Cl.lrkson
H. D. Lockhart Gordon
G. T. Clarkson
llsl.ihlished ISliJ R.J. Dilworth
RUTHERFORD WILLIAMSON 4 CO.
Chartered AccounUtnts. Trustees and
Liquidators
S6 Adelaide Street Kast, TORONTO
604 McGiLL Blildino. MONTREAL
Cable Address ' VVILLCO."
Represented at Halifax. St. John. Winnipeg,
HENRY BARBER & CO
EstabUshed 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railway Building.
6 King Street West TORONTO
J. Culross .Millar. C.A
Walter J. .Macdonald.
C.A.
Mill
ar,
Macdonald & Co.
Cha
Ttered Accoun
tants
Home
Bank
Building, 428
WINNIPEG
Main Street
HARBINSON & ALLEN
Chartered Accounlanis
408 Manning Chambers
TORONTO
26
THE MONETARY TIMES
Volume G<5.
COxWEYANCE OF PROPERTY BY DEBTOR
Right of Creditor to Lien on Property Not Affected When
Transfer Made to Avoid Execution of Judgment
TN a recent appeal to the Saskatchewan Court of Appeal
■■■ to set aside a transfer of land from husband to wife as
a fraud upon creditors, the Court held that the conveyance
from husband to wife of homestead property which, owing
to its exempt character, is not immediately available in pay-
ment of a creditor's execution but which had it remained in
the debtor's name would have entitled the creditor immedi-
ately to a lien thereon is a conveyance which, if the debtor
has not sufficient property left wherewith to pay his debts,
is a fraud upon creditors and will be set aside.
Justice Newlands gives the facts and his decision there-
on in the following words:
Judgment Entered Against Defendant
"This is an action to set aside a transfer from the de-
fendant Phillip Bolley to his wife, Mary Bolley, of the N-
Ei4-27-6-28-W2nd, as a fraud upon his creditors.
"The Advance Rumely Thresher Co. are execution
creditors, having obtained judgment against the defendant
Phillip Bolley on December 11, 1918, for the sum of $3,-
850.99. The transfer in question was dated July 19, 1918,
and was registered on the 20th. Two defences were set up:
(1) that the transfer was made for valuable consideration,
and (2), that the quarter section was the homestead of the
defendant Phillip Bolley, and it being exempt from seizure
the transfer of it was not a fraud upon creditors. The trial
Judge found that the defence that the transfer was made
for valuable consideration failed, and that there would there-
fore be a declaration that the transfer in question was a
fraud upon creditors. He made no finding as to the land
being the homestead of the defendant Phillip Bolley. The
appellants do not on this appeal question the correctness of
the Judge's finding as to the consideration; they rest their
appeal entirely upon the fact that the land in question was
the homestead of the defendant Phillip Bolley, and there-
fore the transfer of it to his wife was not a fraud upon his
creditors.
"The execution of the plaintiffs when registered (under
the Land Titles Act) would bind and form a lien and charge
upon the land, but, while it remained Phillip Bolley's home-
stead. It could not be sold to satisfy such debt. Now in
this case the land could not be sold under the plaintiffs'
execution while it remained the homestead of the execution
debtor; it is still his homestead, though standing in the
name of his wife and it cannot be sold to pay such debt
Under these circumstances, is this transfer a fraud unon
creditors ?
Transfer Void as Regards Lien
"In Roberts v. Hartley (1902), 14 Man. L.R. 284 the
same question was before the Court. In that province a
certificate of judgment may be registered against a home-
stead and It would bind all his interest or estate in the
same as though charged in writing under his hand and seal,
but no proceedings could be taken to realize on the judg-
ment debtor's homestead. The judgment debtor conveyed
his homestead to his wife and the Court held that such
conveyance should be set aside as a fraud upon creditors.
In Scheuerman v. Scheuerman, the Supreme Court of
Canada held, in effect, that a transfer by a debtor to his
wife of exempt property was a fraud upon creditors because
they refused to set aside such a transfer at the suit of the
husband, because he had to set up that he conveyed the
sameto his wife to protect it against his creditors "until a
certain debt was paid.
"I have, therefore, come to the conclusion that the
transfer m question is one that must be declared void as
against the lien or charge that the plaintiffs have upon the
land by virtue of their execution, and that the judgment
should be amended accordingly. With this exception the
appeal should be dismissed with costs."
PAYMENT ON NOTE TO BANK
In the Montreal courts a few days ago Beno Berman was
condemned to pay the Bank of Nova Scotia $3,607, with interest
at the rate of 5 per cent, from August 6, 1920, and the costs of
the action. Berman had refused to pay a note, alleging that
after he signed it the words "add interest and exchange" were
written as an interline on the document without his consent or
knowledge, and that the note was obtained on false represen-
tation as to the quality of the wine bought, which made the
basis of the note.
As to the second objection. Justice Mercier said that even
supposing Berman's plea had any foundation it would be incum-
bent upon him not only to establish its truth, but he would have
to do more before he could establish his defence. He would
have to show that proper test had been made of the wine; that
he served on the vendor his objecttion to the quality and inabil-
ity to accept it, and having at the same time put the vendor in
demeure to take it back and return to defendant (Berman) his
note which he alleged he had obtained under false representa-
tions. With regard to the plea that material alteration had
been made to the face of the note by writing the words "add
interest and exchange" after defendant signed the instrument.
Justice Mercier said this allegation was disproved by the evi-
dence. Holding, therefore, that defendant had failed in each
and every one of his pleadings, the court gave judgment for
the bank for the amount claimed, and costs.
EMPLOYMENT CONDITIONS IN CANADA
Dominion headquarters of the Employment Service of
Canada, Department of Labor, reports that during the week
ending March 5, 1921, there was a further decline in em-
ployment as reported by 5,345 firms who made returns show-
ing that they had released 4,237 persons from their payrolls,
a contraction of slightly less than one per cent. In 17 in-
dustrial groups there were increases in employment amount-
ing to 1,013 workers, but in 16 groups there were declines
aggregating 5,250 employees. These figures do not include
loss of time due to industrial disputes. Firms in Nova
Scotia, Prince Edward Island and British Columbia registered
increased employment as compared with their returns for
the preceding week, but in the other provinces there were
substantial losses, the largest of which occurred in On-
tario. For the following week increased activity was ex-
pected in British Columbia, while firms elsewhere antici-
pated that they would show further declines. There con-
tinued to be marked recessions from the employment level
of the base week (January 17, 1920), the combined losses of
63,873 persons, or 13 per cent, in Ontario and Quebec again
being the largest.
Since the preceding week there were general though
rather slight increases in activity in saw mills, furniture,
boot and shoe factories, in water transportation, and in the
highway division of the construction group. The increases
in the last named occurred almost entirely in Ontario, while
the largest gains in water transportation were recorded in
British Columbia. The most pronounced losses since the
week of February 26, were registered by firms in logging,
who had released 1,956 men from their camps, indicating
that bush operations were practically completed. These
reductions were widespread in application, but those in
Ontario of 1,730 persons were especially noteworthy. On
the other hand, there was some increase in activity in
logging in British Columbia. Firms in the railway car,
and crude, rolled and forged divisions of iron and steel, in
the cordage, garment, and knit goods branches of textiles,
in coal and nickel mining, railway transportation and con-
struction, and wholesale trade registered marked reductions
in staflTs. While nearly all the provinces participated in
these decreases, those in Ontario and Quebec were in most
cases largest, except in coal mining, where practically all
the losses occurred in Alberta.
April 8, 1921
THE MONETARY TIMES
•lllllllllllllllllllllllllllllllllllllllllMIMIIIIIIIIMIIIMIIMinMIIMinMlllllllllllllllilllllllllllllllllllllllllllllUIIIIIUIIIIIIUIIIIIIIIilllllllllllllllllUII^
I REPRESENTATIVE LEGAL FIRMS |
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CALGARY
Charles F. Adams, K.C.
Bank of Montreal BIdg.
CALGARY - - ALTA.
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barristers, Solicitors, Etc.
Solicitors for Bank of Montreal. The Trust
and Loan Co. of Canada, British Canadian
Trust Co., &c.. &c.
C. F. P. Conybeare. K.C, H. W. Church, M.A.
R. R. Davidson. LL.B.
Lethbridge - • Alta.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT, SASK.
W. F. W. Lent. K.C. A
LL.B. H. D. .Ma
USNT, MACKAY & MANN
Barristers, Solicitors. Notaries, Etc.
305 Grain Exchange Bldg , Calgary. Alberta
Cable Address." Lenjo." Western Union Code
Solicitors for The Standard Bank of Canada.
The Northern Trusts Co., Associated .Vlort-
gafie Investors. &c. ^^^^^^
J. A. Wright. LL.H. C. A. Wrk^ht, B.C.L.
WRIGHT & WRIGHT
Barristers, Solieilors, Notaries, Etc.
Suite 10.15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. A. C. Rutherford. K.C, LL.O
F. C. Jamieson. K.C. Chas. H. Grant
S. H. McCuaiR Cecil Rutherford
RUTHERFORD. JAMIESON
& GRANT
Barrister*, Solicitors, Etc.
514-18 McLeod Bldg. Edmonton, Alberta
HALIFAX, N.S.
Maclean, Burchell & Ralston
Barristers, Solicitors, etc.
Chronicle Bldg., - Halifax, N.S.
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE Alberta
MEDICINE HAT
G. F. H. Long. LL.B. J. \V. SLtiGHT. B.A.
LONG & SLEIGHT
Barristers, etc.
MEDICINE HAT and BROOKS, Alt>.
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers. Etc.
Solicitors-Bank of Montreal
Canadian Bank of Ciniiiifrce
Moose Jaw • Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
SASKATOON
C. L, DuBiE. B.A. B. M. Wakf.l.ino
DURIE & WAKELING
Barristers and Solicitors
Solicitors for the Bank of Hamilton. The
Great West Permanent Loan Co. The
.Monarch Life .\ssurancc Co.
Canada Buildine Saskatoon. Canada
TORONTO
G. W. MORLEY & COMPANY
Barristers, Solieilors, Etc.
802 Lumsden Building. Toronto
Solicitors for A. G. SpaUlins & Bros, of Can.,
Ltd.; A. J. Reach Co. of Can., Ltd.; Dominion
Chautauquas. Ltd., etc., etc.
Special attention given to Corporation work
and collections.
Cahle Address; ".Morley." Toronto
VANCOUVER
W. J. Bowser, K C R. L. Reid. K.C.
D. S. Wallbridtjc A. H. Douglas J. G. Gibson
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers. Solicitors. Etc.
Solicitors for Bank of Montreal (Bank of
British North America Branch)
Yorkihirc Buildint. 525 Scmoiir St., VinnilTer, B.C.
Your Card here would ensure it being
seen by the principal financial and
commercial interests in Canada.
.4sk about special rates for
this page.
WE BUY WE SELL
Chauvin^Allsopp & Company, Limited
FARM LANDS
And other good property, EDMONTON DISTRICT.
VALUATORS
Ground Floor. McLeod Building - Edmonton. Alta.
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Elxchange
Calgary, Alta.
A. J. Pattison Jr. & Co.
Members
Toronto Stock Exchange Montreal Stock Exchange
Specialists Unlisted Securities
IDS BAY STREET TORONTO
28
THE .MONETARY TIMES
Volume 66
NEWS OF INDUSTRIAL DEVELOPMENT
Steel Companies Awaiting Railway Orders — Canadian Car
and Foundry Also Anticipating Business from this End
— Nickel Plant at Deschenes Shut Down —
Textile Mills are Closed
CANADIAN railways are in need of equipment, but officials
are disposed to move cautiously until trade takes a more
definite turn. D. H. McDougall, president of the Nova Scotia
Steel and Coal Company, in addressing- the shareholders at
the annual meeting, expressed his view on the subject. He
said that there is no disposition on the part of the govern-
ment to place orders for equipment, but the requirements
of the railways are of such a character that any marked im-
provement in general business reflected upon transportation
will, in all probability, cause the placing of substantial orders
for track materials and rolling stock. Because of the reduced
scale of steel manufacture there are substantial stocks of iron
ore in the United States, in England and on the continent,
and the immediate outlook for ore sales is not good. There
are reasons to believe, however, that a market for Wabana
ore will be found overseas at, a not distant date.
Besides the steel companies, the Canadian Car and Foun-
dry Company is anxiously awaiting the time when the rail-
ways will place orders for equipment. A substantial govern-
ment order which the company has been expecting for some
time has not yet materialized, and there is a need for new
business, orders on hand being sufficient to keep the plants
busy until May.
Every effort, however, is being made to secure export
business, and, according to authoritative information, pros-
pects in this respect are promising. W. W. Butler, president
of the company, is at present in England, and negotiations
for a large order of railway equipment are now in progress.
Nickel Plant Closed
The plant of the British America Nickel Company at
Deschenes, Que., which, since it has been in operation during
the last year and a half, has given employment to upwards
of 500 residents of the district, has closed down. Intimation
that the plant would likely close on or before the first of May
was conveyed in a statement from the head offices of the
company at Sudbury some time ago, and since then the
Deschenes management has been gradually reducing the staff".
By the close down about three hundred men are thrown out
of employment. The company is retaining sufficient men at
the plant to form the nucleus of an organization, as it is
expected the mills will reopen just as soon as conditions on
the nickel market warrant it doing so.
In this connection the company has issued a statement
which says: "The present bad situation of the metal market
has caused all the nickel manufacturing companies in Canada
temporarily to considerably reduce their production or to
shut down, but the refinancing scheme for British America
Nickel Corporation, Ltd., which now has been adopted by
the bondholders and the debenture stockholders, will place
this company in a position to restart its operations as and
when it may be found desirable. The company's mining pro-
perties, its different plants and refining processes have re-
cently been reported upon most favorably by various groups
of eminent, independent experts."
Reduced Wages
Commencing on April 4 last, the Gatineau Lumber Com-
pany brought into effect a wage reduction averaging about
15 per cent, to all Ottawa employees, some two hundred in
number. The scale of wages will then be practically the same
as in 1919, a general increase of from 15 to 20 per cent, having
been given early in 1920. A prominent official of the Gatineau
Company, Ltd., which includes both the W. C. Edwards Com-
pany and the Gilmour-Hughson Company, stated that the
reduction in wages had been chosen in preference to the only
alternative, viz., closing up both the yard and factory. Busi-
ness thruoghout the winter, and particularly of late, had been
so slack that the company found itself unable to operate at
the present scale of wages.
British Columbia pulp is being shipped to the Orient, and
recently a shipment was made to Australia. All consumers
are tied up with long-term contracts. The extension to Aus-
tralia is interesting, because hitherto the mills have shipped
only paper. No effort is being made to touch European
markets.
Toronto meat packers, numbering about 1,600, went out
on strike this week, protesting against a reduction of 12 Vi
per cent, in wages. One of the officials, in commenting on
the action of the einployees, stated that in Chicago, the meat-
packing centre of America, the men had signified their will-
ingness to accept a reduction of eight cents an hour, and
claimed that the reduction offered in Toronto did not exceed
an average of seven cents an hour.
Textile Mills Closed
Two of the three branches of the Canadian Cottons, Ltd.,
at Cornwall, Ont., have closed down for a period of two
weeks, trade conditions being given as the reason. These
mills have been running four days a week for some time.
The other local branch has been running full time all along,
and will continue so while the other two are closed for the
two weeks.
Announcement is also received from St. John, N.B., that
the Cornwall and Yoi'k Cotton Mills,' Ltd., has closed down
its plant, which has been running on a reduced scale of hours
for some time. Some 550 employees are affected, and the
shutdown will last for two weeks.
Victoria and Vancouver Island may shortly become the
centre of the woollen industry on the Pacific Coast. The in-
dustrial committee of Victoria will at once take up with
Edward Hodgson the matter of providing a site for a woollen
mill here costing in the neighborhood of $500,000. Mr. Hodg-
son wrote to the council, stating that he had instructions from
one of the largest woollen manufacturers in Great Britain
to find a factory site on the coast. "The people I represent,"
wrote Mr. Hodgson, "have their own sheep fai'ms in Aus-
tralia, and have very extensive business on the American
continents. The proposed plant will cost about $500,000. I
am asked to get free site for the factory and exemption from
taxation for a term of years."
DOMINION GOVERNMENT SAVINGS BANKS
Deposits in the Dominion Government Savings Banks in
February, 1921, were only $143,618, as compared with $177,-
767 in the previous month. On the other hand, withdrawals
decreased from $534,832 in January, to $109,059. The large
withdrawals in January were the result of tr&nsfers to the
Post Office Savings Banks. February details are as follows: —
BANK
Deposits
for
Feb., 1921
Total
Deposits
Withdraw-
als for
Feb., 1921
Balance on
Feb. 28.
1921 .
Manitoba : —
Winnipeg /
Transfer* \
$ cts
$ cts
« cts
« cts.
British Columbia:—
19,439.93
21,291,00
1,101.607.33
1,799,944.61
20,674.84
10.644.28
1,080.932,49
1.789,300.33
Prince Edward Island .—
New Brunswick:—
Newcastle
79,770.95
4.312.601.33
64,333.35
77,736.19
2,296,680.52
2.S4,914,48
54,534.00
3.108.22
270.32
16.027.05
3.359.00
4,258.067.33
Nova Scotia : —
338.00
16,983.00
5,351.00
445.00
143,618.88
67.052.62
9,974,870.43
441.85
109,059.56
66,610.77
9,865,810.87
April 8, 1921
THE MONETARY TIMES
The Imperial
Guarantee and Accident
Insvirance Company
of Canada
Head Office, 20 VICTORIA ST., TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $-200,000.00
Authorized Capital - • - $1,000,000.00
Subscribed Capital - - ■ $1,000,000.00
Government Deposits - - $111,000.00
L^-^ ^J PI /^ ^J GUARANTEE AND
^-^ *^ '^ ^-^ A^ ACCIDENT COY., Limited
Head Office for Canada - Toronto
Employers' Liability, Elevator, Contract. Personal Accident, Fide
Guarantee, Internal Revenue. Sickness, Court Bonds.
Teams and Automobile.
AND FIRE INSURANCE
The Western
Mutual Fire
Insurance Co.
Head Office
Didsbury, Alberta 1
President
— H. B. ATKINS
M.L.A.
PARKER R. REED,
LARGEST ALBERTA
y^anaiing Director
FIRE MUTUAL
CANADIAN STRONG PROGRESSIVE
A_^ "yifte wjaii*9iMi"jee ©«*>je«prr
FIRE INSURANCE
AT TARIFF RATES
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I Automobile— 1 92 1 —Season |
g Policies to cover ANY or ALL motoring' risks g
I ATTRACTIVE AGENCY CONTRACTS |
I British Empire Fire Underwriters
I S2-88 King Street East, Toronto
■ Assets Exceed $4,000,000
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Commercial Union Assurance Co.
Limited, of London, Ensland
Capital KuUy Subscribed 8 14,750,000
Capital Paid ("p 7,375,000
Total Annual Income Exceeds 75,000,000
Total Funds Exceed 209,000,000
Head Office Canadian Branch:
COMMERCIAL UNION BUILDING - MONTREAL
HALIAKRT J. KliRR, Assistant .Masa.ilh. W S. .IDI'LI NG. Masa.^lk
Toronto Office • 49 Wellington Street East
GEO. R, HARGRAFT. General .AKcnt for Toronto and County of York
G E
N
E R
A L
ACCIDENT
FIRE
AND LIFE
ASSURANCE
CORPORATION.
LIMITED,
OF PERTH,
SCOTLAND
PI-.LEG HOWLANl),
Canadian Advisory Director
Toronto Attents, E
THOS. H
Manager fo
L, HcLEAN. LIMITED
HALI.
Canad.i
FARMERS'
FIRE & HAIL INSURANCE COMPANY
FIRE, HAIL AND AUTOMOBILE INSURANCE
Head Office, CALGARY. Saskatchewan Office, REGINA
M. P^ JOHNSTON, Managing Director
THE PROVIDENT
ASSURANCE COMPANY
A. M. .ALETTER, Provincial Agent
C.P.R. Buildings Toronto
A Strong All-Canadian Company, with Head
Office at Montreal, has been licensed to transact
Fire Insurance
in addition to Automobile, Accident, Sickness,
Liability, Guarantee and Surety.
The Fire Branch will operate non-tariff,
writing moderately large lines.
Applications for agencies are invited.
30
THE MONETARY TIMES
Volume 66.
NEW INCORPORATIONS
Capital for Week Ended April 6 is $13,0i)r),900. Compared
with $14,850,800 Previous Week
Authorized capital of $13,095,900 is represented by com-
panies whose incorporation was reported to The Monetary
Times durinjj the week ended April 6, compared with $14,-
850,800 for the previous week. A comparative summary by
provinces is as follows: — ,
Week ended Week ended
March 30. April 6.
Dominion $ 1,950,000 $ 3,365,000
Alberta 665,000
British Columbia 1,113,000 3,940,000
Manitoba 1,235,000
New Brunswick 4,900
Ontario 4,669,000 5,153,900
Prince Edward Island 80,000
Quebec 4,984,900 637,000
Saskatchewan 149,000
Totals $14,850,800 $13,095,900
The following is a list of companies recently incorporated
under Dominion charter,i with head office and authorized
capital: —
Spmerville Paper Boxes, Ltd., London, $500,000; Inter-
national Toy Co., Ltd., Montreal, $50,000; L. A. Ott Co., Ltd.,
Montreal, $100,000; General Forgings and Stampings, Ltd.,
MeiTitton, $900,000; Fix Shoe Co., Ltd., Montreal, $90,000;
Transcontinental Agencies, Ltd., Montreal, $100,000; Her-
cules Truck Co., Ltd., Hamilton, $100,000; St. George's Store,
Ltd., Montreal, $150,000; Canadian Evaporated Apples, Ltd.,
Toronto, $150,000; Atlas Brick Co., Ltd., Toronto, $315,000;
Cook Power Co., Ltd., Toronto, $200,000; Gulf Transporta-
tion Co., Ltd., Quebec, $50,000; Marvel Shock Absorber Cor-
poration, Ltd., Toronto, $100,000; Ley and Mc Allan, Ltd.,
Montreal, $10,000; York Oil and Gas Co., Ltd., Torbnto, $50,-
000; Beeby and Aikins, Ltd., Ottawa, $500,000.
Provincial Charters
The following is a list of companies incorporated under
provincial charter with head office and authorized capital:—
British Columbia.— Port Alexander Logging Co., Ltd.,
Vancouver, $100,000; Coquitlam Athletic Club, Ltd., Port
Coquitlam, $5,000; Cranbrook Brewing Co., Ltd., Cranbrook,
$25,000; Globe Airless Tube Co., Ltd., Vancouver, $200,000;
Smith Mercantile Co., Ltd., Port Hammond, $25,000; King's
Cafe, Ltd., Vancouver, $20,000; Edson Petroleum Co., Ltd.,
Vancouver, $500,000; Korenaga Co., Ltd., Vancouver, $10,-
000; Master Cement, Ltd., Vancouver, $30,000; Collingwood
Club, Ltd., Vancouver, $10,000; Mount Bruce Mill Co., Ltd.,
Victoria, $15,000; Lakeshore Mining Co., Ltd., Ainsworth,
$3,000,000.
Ontario.— Sterling Meat Co., Ltd., Hamilton, $100,000;
Edgewood, Ltd., Toronto, $200,000; Inwood Farmers' Co-
operative Elevator Co., Ltd., Inwood, $14,900; Economic
Ready-to-Wear Co., Ltd., Toronto, $40,000; Northern Farm-
ers' Co-operative Co., Ltd., Englehart, $10,000; Mount Eagle
Feldspar Co., Ltd., Toronto, $1,000,000; Quaker Gasoline Co.,
Ltd., Toronto, $500,000; Paddon Co., Ltd., Windsor, $40,000;
Cairncroft Dairy, Ltd., Brantford, $40,000; E. Clavir and
Sons, Ltd., Toronto, $40,000; William Long, Ltd., Toronto,
$150,000; Keene Co-operative Shippers, Ltd., Keene, $14,000;
Honey Harbor Navigation Co., Ltd., Midland, $40,000; Owen
Sound Transportation Co., Ltd., Owen Sound, $40,000;
Brooke-Jarvis Estates, Ltd., Toronto, $50,000; Canadian
Chautauqua Institution, Ltd., Toronto, $40,000; General
Petroleum and Gas Co., Ltd., Toronto. $500,000; Comfort-
Kirkland Mines, Ltd., Toronto. $1,500,000; Frontenac Paper
Box Co., Ltd., Kingston, $40,000; Union Star Cheese Factory,
Ltd., Northcote, $5,000; Oxford Farmers' Produce Co.,
Ltd., Woodstock, $40,000; Lakefield Rink, Ltd., Lakefield,
$40,000; Grimsby Arena, Ltd., Grimsby, $50,000; Lake Erie
Development Co., Ltd., Leamington, $100,000; Merlin Farm-
ers' Co-operative Co., Ltd., Merlin, $10,000; Ardross, Ltd.,
Toronto, $300,000; Clapperton's, Ltd., Toronto, $250,000.
Quebec— Noel et Cie, Ltd., Jonquiere, $20,000; M. A.
Bradshaw, Ltd., Montreal, $49,000; La Construction
Economique, Ltd., Quebec, $75,000; Shur-Fit Costume, Inc.,
Montreal, $99,000; Monroe Automobiles, Ltd., Montreal,
$275,000; Langley Langlois, Ltd.. Mont-Joli, $20,000; Le
Promoteur d'Industrie, Ltd., Montreal, $50,000; Ideal Pad,
Ltd., Montreal, $49,000.
INSURANCE LICENSES AND AGENCY NOTES
A Dominion license has been issued to the National
Union Fire Insurance Co. of Pittsburg, Pa., to transact
the business of hail insurance, in addition to the classes for
which it is already licensed.
Authorization has been granted to the Reliance Insur-
ance Co. of Canada to transact in British Columbia the busi-
ness of fire insurance. Chas. V. Wakely, special agent, Van-
couver, is attorney for the company.
Calgary commissioners have amended their former sick
and accident benefit recommendation for civic employees, by
assuming' the total risks for policemen and firemen, on ac-
count of their dangerous work. In tendering for this insur-
ance, the various companies calculated on the basis of the
city's payroll, which amounts to $175,000. The lowest
tender received, which is far below the next lowest tender,
was from the National Benefit Assurance Co., which offered
to furnish the policies at one per cent, of the above payroll,
which would amount to $17,500. The commissioners are
recommending this company to the council. It was pointed
out by one of the tenderers that the above offer was very
low and that investigations had brought out the fact that
in group insurance many companies tendered very low in
order to land the deal, and they subsequently raised their
rates within three or four months. A written agreement
was given by the National Benefit Co. that no raises would
be made unless in the case of a serious epidemic.
The group department of the Travellers Insurance Co.
of Hartford, Conn., has been combined with the regular life
and accident department. H. M. Jupp, special representa-
tive of the group department, is promoted to assistant man-
ager of the life, accident and group department, for the
Toronto branch.
C. A. Uren, after nearly ten years' service with the
Metropolitan Life Insurance Co., in the (Toronto) Riverdale
district, has been appointed inspector for the London Guar-
antee and Accident Co. He has been allotted the Toronto
district east of the Don River.
Addition of four stories to the Great West Life A*ur-
ance Co. building on Lombard St., Winnipeg, is being con-
sidered by the board of directors. Increased business has
caused congestion in the present building of four stories,
according to E. C. Ferguson, the general manager.
A. G. Richardson, manager of the steamships depart-
ment for Alloway and Champion, Winnipeg, has accepted
a position with the fire and automobile department of the
United Grain Growers.
Victor Archambault, formerly superintendent of agents
of the La Sauvegarde Life Insurance Co., has been appoint-
ed Quebec City branch manager for the Imperial Life As-
surance Co., and will start on his new duties immediately.
The territory covered by Mr. Archambault in his new posi-
tion will extend from the Maritime provinces to the limits
of the Island of Montreal, which is under the control of E.
J. L'Esperance, the Montreal manager. Mr. Archambault
is well known in local insurance circles, having held the
position of provincial manager for the Excelsior Life In-
surance Co., among other responsible appointments.
April 8, 1921
THE MONETARY TIME?
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
haslived up to its motto "Solid as th** Continent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. 11 you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
■'SOLID AS THE CONTINENT"
HEAD OFFICE TORONTO
Important Features of the Ninth Annual Report
WESTERN LIFE ASSURANCE CO.
HEAD OFFICE - WINNIPEG. MAN.
Assurances, New and Revived 81,308,750.00
Premiums on same 44,705.25
.Assurances iu Force ... 4,233,907.35
Total Premium lucome . ... 128,286.67
Policy Reserves 291,969.00
Admi'tteil .Assets 358,667.36
Average Policy 2,306,04
Premium per Jl.OOO Insurance — Collected in
Cash 30.30
l-or particulars of ii good agency apply to
ADAM REID. ManaginK Director WINNIPEG
The Mutual of Canada Day by Day
During the year 1920 the average payments in benetUs of different kinds
to beneficiaries and policyholders amounted to $11,500 for every
working day throughout the year, a total of 83.J92.830. Every year
the payments have increased, the total made since the establishment of
the company being over thirty-three millions. The funds in hand to
^;uarantee future payments amount to forty-two millions -so that the
company has either paid or holds in trust more than *75. 000.000. This
total exceeds the premium income by eight millions. These figures show
th.)t the Mutual Life of Canada is making good on all contracts entered
mto in past years. It is not only "making good." it is " making better,"
for the profits alone actually paid during the years since establishment
amount to eight millions of dollars, a record of economy and service of
which any life office might justly be proud.
The Mutual Life Assurance Co. of Canada
Waterloo Ontario
"For the man of vision."
Policies which may be adjusted to meet changed cir-
cumstances. The " Canadian " Series issued only by
The London Life Insurance Co.
HEAD OFFICE
LONDON. CANADA
'TO Policyholders hctvveen the Company .ind the
success. Hvcry representative is given the utr
CO-OPERATIVE SERVICE
Agents is the secret of our
jtmost assistance, but he must
look after our clients' interests. During the last 21 years Tbe ConliauiUl Life has
built an enviable reputation for prompt payment of claims.
Write fur hookkt. "Our Beit Advertiicrt." For .Manager's positions in
Ontario, apply with references, stating experience, etc.. to S. S. WEAVER. Eaitem
SoperioteDdcDt, at Head Office.
THE CONTINENTAL LIFE INSURANCE CO.
Head Office
TORONTO. ONTARIO
Ask for Personal Rates
If you need LIFE INSURANCE it ,- to your interest to
inquire into the terms on which the many attractive
Policies of THE GREAT- WEST LIFE ASSURANCE
COMPANY are issued. These Policies provide pro-
tection on most liberal conditions at low rates, and are
known for the high profit returns paid to Policyholders
State your age and needs
mailzd by return.
when full details will be
THE GREAT- WEST LIFE ASSURANCE COMPANY
DEPT. ■■ I-"
HEAD OFFICE
WINNIPEG
The Western Empire
Life Assurance Company
Head Ofiice : 701 Somerset Building, Winnipeg, Man.
SASKATOON
QPPICBS
EDMONTON
VANCOUVER
Northwestern
Mutual
Fire
Association
SEATTLE WASH.
Head Office
for Canada
Hamilton, On
t. Ass
ets over $1,700,000
Writing
Fire Insurance at C
QSl
All Pc
licies divi
dend paying
and no
1-assessable.
NOR.MAN S.
JONES, Ma
nagcr K
. J. MAHONY,Ass-t Manager |
Merchants Casualty Co,
Head Office: Winnipeg, Man.
npanv in Canada
and Provincial
n of Canada.
Oper
The most progressi'
supervision of the Don
l-^mbracing the entire Dc
SALESMEN NOTE!
Qjr accident and health policy is the most liberal protection offered
for a premium of SI. 00 per nionth and up.
Covers over 2.500 different diseases.
Pays for Life if disabled through Accident or
Illness.
Fifty per cent, extra if confined to hospital.
Pays for Accidental Death. (Quarantine. Sur-
geon Fees for minor injuries, also for death of
Beneficiary and children of the Insured.
Good Openings for Live Agents
Eastern Head Office. Royal Bank Bldg.. Toronto
Home Office Electric Railway Chambers,
Winnipeg. Man.
THE MONETARY TIMES
'News of Municipal Finance
Retina Had Revenue Deficit in 1920— Moose Jaw's Borrowing Power— Calgary Collec-
tions Improved Last Year— City Will Remit Arrears to New York Due on Treasury
Bills— St. John Debenture Debt Increased— Melville Bondholders Reach Agreement
Melville, Sask. — An agreement has been concluded be-
tween the representatives of the town and the committee of
the town's bondholders, by which it is hoped the arrears and
future payments of interest, etc., will be met. The $54,000
arrears on interest, principal and sinking fund is to be funded
and paid off in fifteen equsl annual instalments. Various
economies are promised by the town, and the whole settlement
is to be submitted to the town council and to the bond-
holders for approval.
St. John, N.B. — There is an increase in debentures out-
.standing of $596,894, according to the annual financial state-
ment for 1920, the debenture debt at the end of the year
being $5,595,820. Against this there is ;:• sinking fund of $1,-
487,751, which shows an increase for the year of $154,503.
Total capital assets of the city amount to $8,544,984,
and liabilities $5,810,547, leaving a surplus of $2,734,436, as
compared with $3,949,165 in the previous year.
The amount of money required under the total warra.nts
sent to the assessors for 1920 was $1,438,799. Tax collec-
tions both current and arrears, amounted to $1,374,449, $64,-
329 less than the money required, or a short collection of
4.47 per cent. The amount of debenture interest paid during
the year was $222,916. Interest on the debenture debt at
December 31, 1920, stood at $249,929.
Regina, Sask. — The city's revenue deficit for the year
ending December 31, 1920, amounted to $73,705, of which
sum $52,260 is attributable to losses on operation of the
utilities, according to the annual report of the city auditors.
The gross expenditures for the year in operating the civic
machine totalled $995,138, while the total tax levy available
for general municipal government was $921,433, the differ-
ence representing the deficit for 1920.
The expenditure column includes provision for the pay-
ment of $25,301 as last year's proportion of an accumulation
of old deficits, up to and including 1914, which the city is now
providing for in annual instalments from the general tax
levy. There is a balance still outstanding on this account of
S78,S51.
Gross bonded debt at the end of December, 1920, stood at
$11,150,255, according to other figures made public by the
city E'uditors. This means a per capita debt for every man,
woman and child in Regina of $278.75. The total amount
which has been spent by the city on capital account for im-
provements, such as pavements, sidewalks, sewer and water,
and municipal buildings, etc., is $14,946,700. Against this
the gross bonded debt amounts to $11,150,255. The total
value of all assets is $16,787,819, while the capital liabilities
amount to $13,153,821, leaving a surplus amounting to $3,-
633,997.
Montreal, Que. — In accordance with the bill passed by
the legislature, the Administrative Commission has appointed
seven aldermen and the city comptroller to be members of
the Metropolitan Commission. These appointments will re-
main effective until the new city council, which is to be elected
next autumn, appoints the permanent representatives of the
city of Montreal for the ensuing two years. When the other
municipalities appoint their representatives, and when the
necess&ry organization for the enforcement of the law has
been completed, the Metropolitan Commission will begin its
important work of exercising financial control over the bor-
rowing powers of the municipalities which are in this league
or Montreal island cities.
The project for a Metropolitan Commission is one of the
recommendations of the Montreal Charter Commission, which
was assisted in the work by the representatives of West-
mount and Outremont and other municipalities. This pro-
ject has no relation whatever with any annexations of muni-
cipalities to Montreal. But the Metropolitan Commission,
according to the intention of those who promoted it and got
it adopted by the legislature with amendments, will regulate
the capital expenditure for which a loan is required, as any
interested municipality must obtain the permission of the
commission for such proposed expenditure.
Moose Jaw, Sask. — Intei-esting figures as to the borrow-
ing powers of the city were presented to the city council
last week by City Commissioner G. D. Mackie. The state-
ment shows thf.'t the borrowing powers on March 15 totalled
$269,835. Under the provisions of the city act the city is
entitled to borrow up to 20 per cent, of its taxable assess-
ment, but for the purposes of arriving at the debt of the city
the city is entitled to deduct from the gross debt at any time
the following: Sinking fund, debentures issued under auth-
ority of the Secondary Education Act, debts incurred for
local improvements, property owners' share.
In the case of the city of Moose Jaw the gross debt is
$6,092,901, less $978,387 for sinking fund, $141,760 for second-
ary education and $779,883 for local improvements, owners'
share or a tot&l to be subtracted of $1,900,032. This makes
the net debt of the city $4,192,869. The taxable assess-
ment of the city on March 15 was $22,663,522, and less 20
per cent., $4,532,700, or a borrowing power of $339,381.
It is explained by Mr. Mackie, however, that the city will
acquire property this year to the assessed value of $350,000,
and as this property is not subject to tE'Xation, it should
really be deducted from the assessment in order to arrive
at the absolute borrowing power of the city. When this is
done the taxable assessment is reduced to $22,313,522, 20 per
cent, of this figure is $4,462,704, and the borrowing power,
therefore, is $269,835.
Calgary, Alta. — An improvement of 1.27 per cent, in the
total collections of arrears and current year's taxes in 1920,
is shown over the same collections in 1919, according to
Acting-City Treasurer F. S. Buchan. The collections for 1920
were: Arrears, $793,500, and current year's taxes, including
general special and business taxes, $2,917,765. The 1919
figures were: Arrears, $824,043; and current taxes, $2,443,988.
The percentages of collections for 1920 were: Arrears,
18.84 per cent.; current taxes, 71.44 per cent.; total, 44.74
per cent, of collectible taxes. The corresponding percentages
for 1919 were: Arrears, 20.60 per cent.; current, 69.49 per
cent.; and total, 43.47 per cent., which gives the 1920 collec-
tions a gain of 1.27 per cent.
In spite of the high rate of exchange existing between
Canada and the United States, the city finance committee has
decided to forward $100,000 of the $360,000 due to Spitzer-
Rorick and Co., on the $1,500,000 treasury bill issue, to New
York, as soon as their agent, J. R. Easton, has secured per-
mission from New York to proceed in this matter in accord-
ance with their previous offer to bear one-third of the rate
of exchange. Arrangements will be made later for remitting
the remaining $260,000, which will probably be sent over in
instalments every three or four months or so. The city had
previously asked the Spitzer-Rorick company to allow it to
keep the money in this country in trust during the current
high rate of exchange, but Mr. Easton, who waited upon the
committee, informed them that, as his company had prac-
tically all of the notes on its hands, they were desirous of
getting their money as quickly as possible.
The above $1,500,000 was loaned to the city against out-
standing arrears of taxes amounting to $3,250,000; and
against those arrears collected up to the present time there
is due to Spitzer-Rorick and Co. approximately $360,000.
April 8, 1921
THE MONETARY TIMES
33
C.P.R. BUILDING
TORONTO
nOUSSERW>ODv°G>MRV*lY
INVESTMENT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
high grade industrial
securities:
12 KING ST. EAST
TORONTO
STOCKS AND BONDS
Canadian. British and American Securities
Bought and Sold on all Principal Exchanges
Prioate uHn connections with New York and Toronto.
OSLER, HAMMOND & NANTON
WINNIPEG
City of St. Catharines
6*% COUPON BONDS
Maturing serially
March 1, 1922 to March 1, 1936
Principal and semi-annual interest (March I and
September 1 'payable in Toronto or St. Catharines
Denominations. $500 and $1,000
PRICE : To Yield 6.30::-6.25%
(according lo maturity)
Harris, Forbes & Company
INCORPORATED
C.P.R. Building 21 St. John Street
TORONTO MONTREAL
N. T. MacMillan Company
Limited
FINANCIAL AGENTS
STOCK and BOND BROKERS
INSURANCE MORTGAGE LOANS
RENTAL AGENTS
305 McArthur BIdg., WINNIPEG, Canada
Membcr« of Winnipeg Real Estate Exchange. Winnipeg Slock Exchange
c.
H.
BURGESS & CO.
Government and
Municipal Bonds
14
King
Street East
Toronto
ACCOUNT BOOKS
Loose Leaf Ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quzdity, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
Foreign Exchange
The Foreign Exchange Situation has created one of
the most attractive speculative investment opportu-
nities ever offered to the investing public, and
provides very substantial profit-making assurances
until the ultimate restoration of the Gold Standard
for European Exchange is reached.
For quotations of Foreign Government Bonds, and
further particulars, apply to
R. M. HEFFERNAN & CO., Ltd.
204 Jackson Building, Ottawa, Ont.
THE MONETARY TIMES
Volume 66.
Government and Municipal Bond Market
Ontario Sold Another $4,000,000 of Treasury Bills— Victory Bonds Continue
Fairly Active — Prices of Short-Term Maturities Improved, but Other Issues
Moved Lower — A Good Number of Western Municipalities in the
Market for Funds — Quebec Secured Its Loan on 6.12 iPer Cent. Basis
THERE was a lull in activity in the government and muni-
cipal bond market dui'ing the past week for the first
time since the beginning of the year. Ontario municipals are
not making their appearance in such large numbers, although
there are many western municipalities in the market for
funds. Quebec City paid about 6.12 per cent, for its loan,
which rate is consistent with recent prices secured by muni-
cipalities in the province. Last year the city made three
loans, and in April received par for 6 per cent, bonds.
.■\s far as the investment situation is concerned, the
quick absorption of the $10,000,000 issue of Ontario treasury
bills is not very significant, for such notes will find a market
where bonds maturing in years would not. It was considered
that the plan of the provincial treasui-er in issuing notes was
a wise one. In the first place, the market may have improved
sufficiently in six months to enable the province to make a
gain on the whole proposition, although the treasurer is
taking a chance on this score. The chief reason, however,
is that so many Ontario bonds have been offered of late that
the people are looking for a change. Consequently, it would
take the dealers longer to distribute another issue just now,
and would cost more, and the bond houses indicated this in
their bidding.
Victory bonds continue fairly active, with prices of the
short-term issues firmer. Prices for the long-teiTn bonds
moved lower, however. The following figures illustrate the
recent trend of prices: —
Control
price.
1922 98
1927 97
1937 98
1923 98
1933 961/2
1924 97
1934 93
Last
week.
This
week.
Hign.
Low.
High.
Low.
981/2
97%
98%
98
97y2
97
97%
97
99%
98%
991/2
98%
97%
97
981/8
97
98%
98%
98
97
96%
96
96%
96
9.5
Coming Offerings
94%
94%
The following is a list of debentures offered
p&rticulars of which have been given in this or
issues: —
Borrower. Amount. Rate %• Maturity.
Nokomis, Sask $ 20,000 8 15-instal.
Craik. S.D, Sask 35,000 . . 20-instal.
Burlington, Ont 48,403 6 30-years
Aurora, Ont 27,060 51/2 20-instal.
Kamsack, Sa-sk 13,400 7 1.5-instal.
Ste.-Marie-de-Sayabec,
Que 11,600 . . 20-years
Vermillion, Alta 27,000 6V2 &7 20-instal.
St. Boniface, TVIan. . . 273,233 .5 & 6 Various
Rockwood R.M., Man. 70,000 6 30-instal.
Peace River, Alta. . . 10,000 6 .5-instal.
for sale,
previous
Tenders
close.
Apr. 9
Apr. 11
Apr. 11
Apr. 15
Apr. 18
Apr. 18
Apr. 25
Apr. 28
Burlington, Ont. — Tenders will be received until April 11,
1921, for the purchase of $48,403.77 6 per cent. 30-year de-
bentures. J. S. Allen, town clerk.
Aurora. Ont. — Tenders will be received until April 11,
1921, for $27,060 51/2 per cent. 20-instalment debentures, the
proceeds of which will be used for local improvements, good
roads and sewers. C. A. Petch, town clerk.
Peace River, Alta. — The town is asking for offers on
$10,000 6 per cent. 5-instalment debentures. Proceeds of the
issue will be used for construction of sidew&lks and bridges..
No definite date is set. W. J. Doherty is secretary-treasurer.
St. Boniface, Man. — Tenders will be received until ."^pril
25, 1921, for the purchase of $273,233 5 and 6 per cent, de-
"bentures maturing in 10, 15, 20 and 30 years. Principal and
interest is payable in Canada and London, England, and the
proceeds of the issue will be used for bridge and waterworks.
(See advertisement elsewhere in this issue.)
Debenture Notes
Stouffville, Ont.— Ratepayers have defeated a by-laW to
raise $12,000 for a new municipal skating rink.
Sarnia, Ont. — The council has passed a by-law authoriz-
ing the i-aising of $1^0,000 for the new collegiate and tech-
nical school.
Stouffville, Ont. — Citizens will be asked to vote on a by-
law on April 4, authorizing the raising of $12,000 for a
municipal rink.
Kamloops, B.C. — The municipal department of the pro-
vince has authorized the city to issue $18,000 7 per cent. 15-
year school debentures.
Winnipeg, Man. — Ratepayers have passed a by-law auth-
orizing the Winnipeg School Board to raise $2,000,000 for
a two-year building program.
Victoria, B.C. — All tenders on the $244,502 6 per cent,
debentures of various maturities, were considered too low
when opened on April 4, and the matter was postponed.
Sandwich, Ont. — Council has passed a by-l&w providing
for the issue of debentures to the amount of $5,300 for the
purpose of purchasing a school site. E. R. North, clerk.
Windsor, Ont. — Council has passed a by-law providing
for the issue of debentures to the amount of $475,230 for
the purpose of constructing a sixteen-room school building.'
M. A. Dickinson, clerk.
Trail, B.C. — A certificate of authorization has been issued
to the city by the municipal department of the province for
$37,000 7 per cent. 20-year watei"works debentures. Another
certificate for $5,000 7 per cent. 20-year park improvement
debentures has also been issued.
Regina, Sask. — Approximately $60,000 will be required
to provide for the proposed capital expenditui'es for the
electric light and power department for this year, and a
further $40,000 to cover over-expenditures of last year. This
will necessitate the issue of debentures for about $100,000.
Brantford, Ont. — The city council has passed by-laws
providing for the issue of debentures for the sum of $80,000
for extension, improvements and addition to the Brantford
Municipal Railway, and for the issue of debentures for an
additional sum of $40,000 for the construction of the St.
Paul's Ave. subw&y.
Taber, Alta. — The Taber irrigation system has been
taken over from the C.P.R. by the district, and the bonds,
amounting to $272,000, have been handed over to the com-
pany by the board. The Taber irrigation bonds are 6 per
cent., and interest is payable annually on the first of August.
The bonds can be obtained in $1,000 lots, and local investors
are given the opportunity to subscribe. Investments in the
bonds can be arranged through the office of the board at
Taber.
Saskatchewan. — The following is a list of authorizations
granted by the Local Government Board from March 19 to
26, 1921:—
School Districts. — Leross, $5,000 8 per cent. 10-instal-
ments; Loyal, $4,700 8 per cent. 15-years annuity; Arbor-
field, $1,50.0 8 per cent. 10-instalments; Penile, $800 8 per
April 8, 1921
THE MONETARY TIMES
35
City of Toronto
6% Bonds
Dated March 1st, 1921 Due March 1st. 1928-51
Denomination: $1,000
Choice of Twenty-Four Maturities
The purchase of these bonds assures you of
unquestioned security of principal and prompt
payment of interest.
At the same time the wide range of maturities
permits you to assure yourself of existing in-
terest rates for whatever period may best suit
your purpose.
Price :
Par and Interest, Yielding 6%
(Maturities 1928-40)
Rate to Yield 5.95
(Maturities 1941-46)
Rate to Yield 5.90%
(Maturities 1947 51)
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
Spanish River
Interim Certificates
Holders of Royal Securities Corpor-
ation certificates for The Spanish
River Pulp& Paper Mills, Limited,
8% General Mortgage Bonds, Series
"A," due March 1st, 1941, are ad-
vised that official Interim Certificates
of Montreal Trust Company, in re-
gistered form, are now available for
issue. They may be obtained, in
exchange for certificates now held,
from any of our offices.
As cheques for May 1st interest will be mailed
to registered holders, we recommend the ex-
change of certificates at as early a date as
possible.
Royal Securities
^ ^CORPORATION
LIMITED
MONTKEAL
TORONTO HALIFAX ST. JOHN. N.B.
WINNIPEG V.4NGOUVER NEW YORK
LONDON. En».
1
\V. L. i\lcl\I.N.\ON
UKA.N H. I'ETTES
We Buy and Sel
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Government and Municipal Bonds
McKINNON BUILDING •:• TORONTO
Telephone Adelaide 3870
Increase the Return
on Your Investments
Send foi our circular describing
Howard Smith Paper Mills
Bonds, which are being offered
at (I very attractive price
R. A. Daly & Oo.
BANK OF TORONTO BUILDING
TORONTO
— 1
Virtorv
Bonds
We endeavour by
courtesy, accuracy
and promptitude to
give complete satis-
faction to every
client.
IVe buv and
sell all maturities
at the market
We will gladly advise
investors upon pre-
sent market value of
their holdings.
W. A. MACKENi
^lE & CO., Limited
1 Covcrnmenl ana A/un.c.p<// Bomi.
1 Corporation Securilia
1 42 KING STREET WEST
• TORONTO - CANADA
L
36
THE MONETARY TIMES
Volume 66,
cent. lO-years annuity; Rexall, $1,200 8 per cent. 10-years
annuity; Landrose, .f4,000 8 per cent. 10-years annuity; Wolf
Hill, .f800 8 per cent. 5-years annuity.
Kegina, Sask. — The Local Government Board has de-
clined to give the city sinking fund permission to purchase
as an investment city cyclone repayment debentures totalling
$55,000. The by-law authorizing the issue of these deben-
tures to provide for repayment to the government of the
amount named was passed at a recent meeting of the city
council. They were to be drawn, bearing interest at rate
of 7 per cent. It was decided that the only course left was
to place these debentures on the open market, and for this
reason a motion was adopted calling for an amending by-law,
making the interest rate 6^2 per cent.
Toronto Township, Ont.— Tenders will be received until
April 12, 1921, for the purchase of $35,000 6 per cent. 30-year
debentures. Chas. H. Gill, clerk, Dixie, Ont.
Bond Sales
Meaford, Ont.— The town has sold $85,000 debentures to
local people to yield GV2 per cent., J. S. Wilson, treasurer,
tells The Moiiclary Tiiihs. The issue was for construction of
good roads, and was oversubscribed in about ten days.
Ontario. — The province disposed of another $4,000,000 of
6 per cent, treasury bills, maturing in six months, this week,
to the same syndicate which purchased the $6,000,000 issue,
mentionetl in these columns last week. The price was the
same, namely, 90.53, which is on a 6.98 per cent, basis.
East St. John School District, N.B. — The following 6 per
cent, serial bonds have been purchased by J. M. Robinson
and Sons, being the balance of an issue of $40,000 made last
fall: $1,600, due August 1, 1941; $1,600, due August 1, 1942;
$1,600, due .^.ugust 1,1943; $1,600, due August 1,1944; $1,600,
due August 1, 1945.
Chatham, Ont. — Iji writing to The Monetary Times re-
garding the recent local issue of debentures, T. E. Cottier,
city treasurer, says: "Early in March an issue of debentures
for waterworks extensions, amounting to $80,000, was offered
for sale locally. These debentures were for a period of from
one to fifteen years, bearing 6 per cent, interst, and were
offered to the public at par. In addition to this issue, we also
offered for sale $10,600 6 per cent., ten-years, for extensions
to McKeough School, and all of these debentures have now
been disposed of without any cost to the city whatever in the
way of commissions, advertising or brokers' fees." Chatham
is one of the pioneers in selling' bonds locally, and has always
been particularly successful when making domestic loans.
Saskatchewan. — The following is a list of 8 per cent, de-
bentui-es reported sold from March 19 to 26, 1921: —
School Districts.— Deer Valley, $3,000 10-years, Natika,
$4,000, 10-years, Grainland, $5,800, 15-years; Nay and James.
Copeland, $1,700, 10-years; Regina Public School Sinking
Fund, Regina. Grand Coulee, $7,000, 15-years; G. T. Smith,
Regina. Arroya, $1,000 10-years, Kempton, $700 10-years;
C. C. Cross and Co. Coteau Hill, $3,000 15-years; H. J. Birkett
and Co.
Rural Telephones. — Tetlock, $3,500 15-years, Merrill,
$13,900 15-years; Harris, Read and Co. South Melfort, $21,000
15-years; H. J. Birkett and Co.
Joliette, Que. — An issue of $47,000 6 per cent. 10-year
bonds has been disposed of to a local purchaser at 99 and
interest, which is on about a 6.14 per cent, basis. Tenders
received were as follows: —
Hanson Brothers 96.16
Nap. G. Kirouac 97.27
Credit Anglo-Francais, Ltee 97.34
A. E. Ames and Co 97.577
Credit Canadien, Inc '. . . 98.715
Le Credit Industriel, Ltee 98.20
Rene T. Leclerc 98.50
Versailles, Vidricaire and Boulais 98.52
Municipal Debenture Cor-p 98.53
Dominion Securities Corp., Ltd 98.537
Maison, Forget and Co., Ltee 98.78
L. A. Fontaine 98.80
J. G. Chevalier 99.00
Quebec, Que. — The United Financial Corp. Ltd., the Do-
minion Securities Corp. and Rene T. Leclerc have purchased
$810,000 6 per cent. 10-year bonds at a price of 99.13, which
is on about a 6.12 per cent, basis. The following tenders
were received: —
United FinanciaJ Corp., Ltd., Dominion Securities
Corp., and Rene T. Leclerc 99.13
Credit Canadien, Ltd 99.066
Beausoliel, Ltd 98.95
Hanson Bros., and Harris, Forbes & Co., Inc 98.949
L. G. Beaubien & Co 98.80
Versailles, Vidricaire & Boulais, and the Municipal
Debenture Corp 98.77
Wood, Gundy and Co 98.64
Nesbitt, Thompson & Co., Foster, Riepert, Barrett
& Low, and Mackenzie & Kingman 98.577
Nation&l City Co., Ltd 98.53
Credit Anglo-Francais, and Provincial Securities Corp. 98.529
A. E. Ames & Co 98.29
REPORT ON ONTARIO INSURANCE
In the report of the Ontario superintendent of insurance,
giving figures of the year 1919, which has just been sub-
mitted to the legislature, it is stated that some changes in
the form of return obtained from companies is contemplated,
with a view to more uniformity among- the provinces. Refei'-
ence is also made to the Masten repoi-t, and to the revision
of the Ontario Insurance Act, on which the department is
now working. The proposals regarding insurance "commis-
sions, and the subsequent negotiations with the companies
and agents, are reviewed, and it is stated that at &• meeting
of the Canadian Fire Underwriters' Association held in Mont-
real on February 14, the proposals of the . department for the
regulation of commissions and for the reduction of rates
were rejected.
TRAVELERS COMPANIES OF HARTFORD
A big year was experienced by the Travelers Insurance
Co. and the Travelers Indemnity Co., of Hartford, Conn., in
1920. New life insurance paid for amounted to $639,829,682,
an increase of $126,848,555 over the previous year. The life
insurance in force now amounts to $1,576,338,993, a gain of
$422,115,258.
The total cash income of the two companies, including
all lines of business, and the income from investments,
amounted to $95,188,727, a.n increase of $15,671,552 over
1919. The total premium income showed a gain of $14,405,-
839. Reserves for the protection of policyholders increased
$24,173,658 to $184,721,450, while total payments to policy-
holders amounted to $272,614,998, a gain of $4,903,640.
Total assets of both companies amount to $203,433,330,
an increase for the year of $26,972,149. When these figures
are compared with years gone by, the enormous growth
which has taken place will be seen. In 1870 there was no
Travelers Indemnity Co., and the assets of the Travelers In-
surance Co. amounted to $1,588,588. In 1910 the assets of the
two companies stood at $76,954,520, and now they are at the
figure given above.
The seventh annual meeting of the Toronto Bureau of
Municipal Research was held on March 31. The balance
sheet shows that for the year ended February 28, $25,552
of the total revenue of $33,222 came from the Federation
for Community Service, while subscriptions amounted to only
$1,280. The expenditures totalled $31,575 and $1,156 was
added to provision for contingencies, leaving a surplus of
approximately $490 for the year.
April 8, 1921
THE MONETARY TlilES
37
$25,000
CITY
OF HALIFAX,
5; % BONDS
N.S.
Due Jut)) ht. 1
953 Denominal
ions, $1,000
Prii
ix:ipal and semi-annual interest pay
abl
E at Toronto. Montreal, Halifax
Price
: 92.85 and accrued interest |
Eastern
YIELDING 6«,
Limited
Securities Company,
ST. JOHN
N.B. HALIFAX, N.S. 1
Investment
Information
Our latest folder is a useful
guide to the investor in
Government and Municipal
Bonds. Write for it.
BOND DEPARTMENT
The Canada Trust Coi'M^^NY
14 King St. E.
^
TE have 450 good businesses for sale in
1 portion of Alberta. Everything from
Store to a small Confectionery
the central
a General
If you
want a business in Alberta you want us.
WHYTE & CO., LIMITED
111
Par
Business
tagea Building
Brohtrs
• Edmonton
Alberta
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C. H. MAC.ALLAY J. P NICOLLS. Notary Public.
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
C;iblc Address. Topcco. Western In. .aid A.H.C., .Sih Edition
CALGARY, CANADA
X
Waghorn Gwynn & Co., Limited
Stock and Bond Brokers
Financial Insurance, and Real Estate Agents
VANCOUVER
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches-SASKATOO.V AND CALGAKY.
iiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiwiiiiiiiiiiiiiiiiiiiiiM
Secure More Bids
H. M. E. Evans & Company, Limited
FINANCIAL AGEINTS
Bonds Insurance Real Estate Loans
Union Bank Bldg., Edmonton, Alta.
LOUGHEED & TAYLOR, Limited
INVESTMENT SECURITIES
210 Eighth Avenue West
CALGARY
ALBERTA
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. \V. .MAHAN J. A. WEST.MAX
President .Managing Director
By inserting debenture advertise-
ments in The Monetary Times of
Canada municipal officials get at
once into direct touch with all
investment dealers who handle
municipal bonds — those respon-
sible for the purchase of bonds
for insurance, trust and loan
companies, as well as most of
the discriminating investors.
It means more bids, ensures real
competition and the maximum
price.
Send your next debenture ad
vertisement to
Monetary Times of Canada
TORONTO
WINNIPEG
.ffliiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiw
THE MONETARY TIMES
Volume 66.
CORPOKATIOX SECURITIES MARKET
Canada Steamships Features Trading on Canadian Ex-
changes— Laurentide Power Company to Issue Bonds —
British America Nickel Bondholders Approve
New Financing
BIT for two factors, the Canadian stock markets during
the past week led a dull and uninteresting existence.
There was still that lack of news which influences the de-
velopment of buying by the public, while on the other hand
there was very little to excite the bearish element.
The lethargy of the market, however, was interrupted
by a break in Canada Steamships, both preferred and
common. Nobody cared to say with certainty the real reason
for the decline, but undoubtedly the expected new financing
was the foundation of it all. The opinion was expressed
that the preferred dividend was in danger, but a statement
from J. W. Norcross, president, set at rest any anxiety in
this regard, and the sentiment towards these stocks greatly
improved.
While this action on the part of Steamships spread to
other sections of the market, an improved trend in some
traction issues failed to be effective outside of that group.
Duluth and Twin City were the most prominent, and sub-
stantial gains were made. Progress is being made with
legislation in Minnesota which, it is claimed, will brighten
the future of these two companies. A bill before the legis-
lature leaving rates in the bands of the Railroad and Ware-
house Commission, instead of a vote of the electors, is ex-
pected to become law shortly. Winnipeg Railway responded
to the rates decision by the Manitoba Court of Appeal in
favor of the company.
As regards Wall Street, the events there were hardly
of the nature to inspire a different feeling here. Call money
dropped to 5 per cent, on the exchange, but this did not
mean a great deal, for the market is waiting for something
in the way of actual events in general business to determine
its opinion.
Trading for the week resulted in the turnover of listed
stocks on the Montreal exchange of 29,927 shares, as com-
pared with 25,300 in the four days previous, while in Tor-
onto the figure was 14,974, as compared with 6,275. Bonds
changed hands to the extent of $1,124,200 in Montreal, as
against $860,810, while the turnover in Toronto was $804,800,
compared with $740,600 previously.
Shareholders of Canadian Woollens, Ltd., have been ad-
vised of the passing of the quarterly dividend on common
stock, which was at the rate of 5 per cent, per annum. Divi-
dend on this stock began in September last, the company
having been organized in 1919. In the circular to share-
holders, it is stated: — "In view of the marked period of re-
adjustment through which all textile industries are passing,
with a considerable falling off in business and drop in values,
it is considered in the best interests that the company's re-
serves during this period should be carefully conserved.
They have, therefore, deemed it wise to discontinue payment
of the dividend on the common stock for the time being.
The company is in an excellent position both financially and
physically, and with the return to normal trade the com-
pany should be able to look forward to a bright future."
Laurentide Power Bond Issue
An issue of $1,500,000 general mortgage bonds of the
Laurentide Power Co., has been sold to the Sun Life Assur-
ance Co. of Canada on a basis costing the power enterprise
slightly under 7% per cent. The securities, which bear in-
terest at the rate of 7 per cent, per annum, mature in 19.36,
and are guaranteed as to interest and principal by the par-
ent concern, the Laurentide Co., Ltd., which owns $7,200,000
of the outstanding common stock of the power concern
amounting to $10,500,000.
The bond issue was made to provide for the installation
of an additional 40,000 horse-power at the Grand Mere
plant, which will bring the capacity of the plant up to
165.000 horse-power.
Approve New Financing
Bond and debenture holders of the British America
Nickel Corporation, Ltd., have endorsed a plan of reorganiza-
tion and new financing. The new financing arrangements
involve the issue of $24,500,000 in income bonds of three
classes: $6,000,000, first income; $6,000,000, "A" income,
and $12,500,000. "B" income. Of the first issue $4,000,000
will be hypothecated for debts to Canadian and Norwegian
banks, and the balance held in the treasury. The second
$6,000,000 will be exchanged for 15-year first mortgage
bonds, and the $12,500,000 issue will be exchanged for $10,-
000,000 debenture stock, and the remaining $2,478,000 will
be issued to satisfy certain claims of Norwegians, who were
prominent in the organization of the corporation.
Notice is given in accoi-dance with the terms of the
trust deed securing the bond issue of Wabasso Cotton Co.,
Ltd., in favor of the National Trust Co., Ltd., trustee, that
$10,000 bonds have been drawn by lot by the trustee for
redemption on June 1st at a price of 105 and accrued in-
terest. The bonds so drawn are as follows: $1,000 each —
Nos. 119, 190, 283, 365, 423, 517, 744. $500 each— Nos. 757.
855, 899, 945, 1167, 1232. At the option of bondholders, re-
demption money may be made payable at London, Eng..
provided the trustee is given at least two weeks' notice prior
to the date of redemption.
Supplementary letters patent have been issued to the
Western Quebec Power Co., Ltd., decreasing the capital stock
from $1,000,000 to $400,000, by the cancelling of 6,000 un-
issued shares of the capital stock.
Stock Offering
The Mack Furnace Co., Ltd., of Chatham, Ont., a newly
incorporated company under the laws of the province of
Ontario, is offering its stock for sale. The capital is $250,-
000, divided into 2,500 shares of $100 each, of which 1,250
are pi-eferred and the same amount of common. The pre-
ferred shares will receive a guaranteed dividend of 8 per
cent., participating with the common stock in the earnings
of the company, to 10 per cent., payable annually or semi-
annually, at the option of the company. No payments of
dividends shall be payable on the common until all accrued
dividends have been paid on preferred. Purchasers of pre-
ferred will be entitled to buy at par one share of common
with every ten shares of preferred acquired. Common stock
only shall have voting power at the shareholders' meetings.
A factory known as the Defiance Iron Works, has been
decided upon as a suitable location, and improvements will
be made to make the plant suitable for the company's pre-
sent need. The factory will be purchased, with four acres
of land adjoining, for $45,000— $30,000 of which will be paid
in common stock. The company will pay a commission on
the sale of the stock of the company not exceeding fifteen
per cent., of the par value of the stock so sold.
Application has been made to the Montreal Stock Ex-
change by Price Brothers and Co., Ltd., for the listing of
the stock of the new company, which recently took over the
old organization as a going concern, by which shareholders
received five shares in the new company for each one share
of old company stock held. The application is for the listing
of $42,683,200 of an authorized issue of $60,000,000 of
common stock, consisting- of 426,832 shares of a par value of
$100 per share, of which 357,972 shares have been issued,
and are outstanding in the hands of the public. The balance
o' 68,800 shares are held to be exchanged for shares of the
old company. All of this stock is fully paid up and non-
assessable.
In their weekly comment on the unlisted market, A. -J.
Pattison, Jr., and Co. say that business opened with consid-
erable activity after the Easter holiday. Now that several
unfavorable conditions which have been ovei'hanging the
market for some time have been definitely decided, a general
feeling of confidence and optimism is again quite apparent.
The small investor continues to purchase securities to an
extent not equalled in the last six months of last year. This
in itself is as favorable an indication of conditions and of
what may be expected in the near futui'e as could be
wished for.
April 8, 1921
THE MONETARY TIMES
39
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Yean
lo yield
7 lo7'i%
We Specially Rcco
enJ these Bonds as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto BIdg. Royal Bank Chambers
EDMONTON CALGARY
The Bond House of British Columbia
WE ARE ;N THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
D'
JD^^^
Addinji - Calculating
Machine
standard model, equipped with
ing an office adjunct as a business man
could hope for. Try it.
United Typewriter Company
Limited
135 Victoria Street, Toronto
and all other Canadian cities
A Newspaper Devoted to
Municipal Bonds
nPHERE is published in New York City a daily
*• and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond ofTerings.
Write for free specimen copies
THE BOND BUYER
67 Pearl Street
New York, N.Y.
Investment Holders
Increase Your Income With Safety
We request you to send us. without obligation, a
list of your holdings.
We may be able to suggest a method of increasing
your income without decreasing your security.
Your Investment Business uill he appreciated
Gillespie, Hart & Todd, Ltd.
Head Office
711 FORT STREET,
VICTORIA, B.C.
Branch
414 PENDER STREET,
VANCOUVER, B.C.
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
,.^.
"Security First "
EXCELSIOR
INSURANCE LIP E COMPANY
^,;:. ;;.; :; '/. '^ '^ ■.'■
A Strong Canadian Company
ii!''i:;;::;:^: ;;^::i^^
Assurances over Forty
Million Dollars
Ask about our Special Invest-
ment Policy. Ifs new !
m^^mmm
HEAD OFFICB-
EXCELSIOR LIFE BUILDING
Adelaide and Toronto Streets
TORONTO - CANADA
40
THE MONETARY TIMES
Volume 66.
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
.pfd.
Sales Open High Low Close
Abitibi P. ft P..
Asbestos Corp..
pfd
Ames-Holden pfd
Atlantic Sugar
Bell Telephone
Brazilian T.L.& Powei
B.C. Fish
Brompton Pulp &P...
Canada Cement
...pfd,
Canadian Car
" pfd.
Can. Con
Can. Cottons
Canadian Gen. Elec. . .
Can. Loco pfd
Can. Rubber pfd
Carriage Fact pfd.
Can. Steamship
•■ •■ pfd.
Con. Mining & Smel. . . 1
Del. Rys ;
Dom. Canners !
Dominion Bridge I
Dom. Coal pfd.
Dom. Iron pfd. I
Dominion Glass. . pfd. I
Dom. Steel Corp
..pfd.
.pfd.!
-pfd.
Kaministitiuia
Lake of the Woods.. |
" ..pfd.
Laurentide
Macdonald Co
Mackay pfd.
Montreal Cotton ..pfd.
SI07
1867
IUS5
Illinois Tract..
Montreal Power
Tram
■ ..Deb.
Telegraph...
National Breweries —
" ...pfd.
Ontario Steele
Ogilvie Flour Mills pfd.
Ottawa
Penmans . .
pfd.
Price Bros
Quebec Ry. L. H.&P..
Riordan Pulp & P
Scotia
Shawinigan W.&P ...
St. Maurice
Sher.-Wms
pfd
St. Lawrence pfd
Spanish River.
■■ pfd
Steel Co. of Canada...
• ■• ■■ ptd
Toronto Ry
Twin City
Tucketts
Wayagamack P. & P..
Winnipeg Ry
Woods Mfg. Co.... pfd
Bnnks
Commerce
Hamilton
Hochelaga —
Merchants
Molsons
Montreal
Nationale
Nova Scotia...
Royal
Standard
Union
Bonds
Asbestos Corp.
Bell Telephone
Co.
.Car
Can. Cement
Can. Cottons
Can. Rubber
Cedars Rapids Mfg.. . i
City Mont. Dec. 6'S.1922
" .\lay6's, 1923
■■ Sept.6's.I923
Dom. Can.W. Loan. 1925;
1931
1937
Victory Bonds, 1924....
1934....
1922....
1927...
1937....
1923...
1933...
iiOOO
6600
2450O
9000
1500
5418
4107
10077
21397
43094
2923:
6464
11.546
28218
21821
32j
llI<»NTREAI.-Con(t»ue<l.
Bonds
Sales Open High Low Close
12000
1250
Dom- Cottons
Dom. Coal —
Dom. Iron
Dom. Steel...
Dom. Textile .
Lake of Wood
Mont. Tramways I 5000
National Breweries . . . ' 5000
Ogilvie Flour 1 12000
Ontario Steel 3000 87l
Penmans !
3000
Quebec Ry.L. H.&P..
Scotia
Sherwin-Williams
Steele of Can
West Kootenay
Wabasso Cotton
Wayagamack P. & P. .
11900! 63
TOKOKTO— Week Ended .4pr. 6th.
Stocks
Atlantic Sugar
Abitibi
Am. Cyan
■■ pfd.
Ames-Holden pfd
Barcelona
Bell Telephone
Brazilian Traction. ...
B.C. Fish
Burt. F. N
•• pfd.
Canada Cement ....
Canners
Canadian Pacific R.
Can. Gen. Elec
...p
Canada Steamship.
Con. Gas..
Coniagas ■
Dome
Dom. Tel..
Duluth ...
Loco. , . . .
Mackay Compani
Maple Leaf
Prov. Paper
Quebec R.L.H. & P
Riordon
Russell pfd.
Salesbook pfd.
Sawyer-Massey
Toronto Ry
Tucketts
Twin City
Winnipeg Elec
Banks
Commerce. .'
Dominion
Hamilton
Imperial
Merchants
Montreal
Nova Scotia
Royal
Standard
Toronto
Union
Loan and Trust
Col. Inv
Can. Land
Can. Perm
Ham. Prov
Lon. & Can
Toronto Mtg
Toronto Gen. Trusts..
Un. Trust
Bonds
Can. Bread
Loco
Ogilvie
Rio. Jan. T.. L.& P...
S.ao Paulo
Steel of Can
4700
1000
1000
Sales Open High Low CI
303
7S»
1325
TORONTO— Cooeinued
War Loans
Dom. Can.W.Loan. 1925
1931
1937
Victory Loan 1922
1923
1927
1937
1933
1924
1934
Sales
Open
High
Low :
945 1
7800
95
95i
16100
93
933
92
43800
97*
97j
97i
107830
98
98ii
98
86700
97*
98J
97
30800
97i
971
97
37250
991
99i
98i
116ISC
978
98
97
37100
96i
9F,|
96
10.5800
94*
948
94* 1
95j
WINMIPEC—Wri'k ended Apr, ind.
:tory Loan 19'22..
" 1923..
" 1924..
'■ 1927..
" 1937..
•■ 1933..
" 1934.
ar Loan 1925
■■ 1931 ....
■■ 1937....
. West Perm
rthe
I Stat
Sale
25100
16750
11400
7050
5950
11150
63600
100
300
High ; Low ' Close
97i
975
SiEW ¥»ltK— Week ended Apr. 2nd.
. 5% 1921
5*% 1921
5% 1926
5*% 1929
5% 1931
;r Mining.
Sales
6000
Open
113*
6000
134000
56000
42000
75000
High
1148
LO^'DOiM, Eng.— Week ended Mar. I9tli.
tiov't. at Man.
Alberta 4i%
Canada. .3i% 193050. . .
•• .... 3%Reg....
'• .... 4% 1940-60.
" .... 4i% 1920-25
Calgary 5% deb
■■ 4j%deb
Edmonton 5% bds.23-53
5% debs....
Manitoba 4 '*> deb. 1949.
Nfld.3i%bds
Montreal 34% bds
44% Reg
4% 1945-50...
Ontario 3j%
Quebec 4A%
" 3% bds •
Saskatoon 5%
Toronto 4% bds
•■ 3i% 1929
Vanc'ver 4% cons. •50-2
Victoria 4% cons.. . .
3% cons....
34% 1923...
34% 1929-49
44% deb. '20-25
54% cons...
Winnipeg 44% 1943-63
4% cons...
Ualln'ays
Can. Nor. 4% deb
■■ 4%cons.deb.
" " Pac. 4%deb.
Can. Pac
" 4% deb/
" 4% ptd.
G.T.P. Br. 4% bd 1939.
G.T.P.4%deb
G.T. P.4%195S
Gr. Trunk... 4% guar.
Gr. Trunk5% 1st. pfd..
Gr. Trunk 5% 2nd pfd..
Gr. Trunk 4% 3rd pfd..
Gr. Trunk 4% cons
Gr. Tr. West. 5% deb..
Ont.& Quebec 5% deb.
P. Gt. East. 44% deb. '42
lud.. Fin., Etc.
Can. Car 6 ^n bds
Can. West Lumber 5%,
Can. Gen. Elec
Toronto Pow. 4i% deb.
Van. Pow. 4*% gr. deb.
Can. Bk. of Commerce
Bank Montreal
Sales Open High
534
91?
91?
72
72
14H
142i
655
654
614
6H
81}
8'.'*
43*
43*
April 8, 1921
THE MONETARY TIMES
RECENT FIRES
Grocery Store at Nanaimo, B.C., Suffered a Loss of $40,000
— Business Block at Altona, .Man., and Large Building
in Montreal Destroyed with Loss of S3.5,000
Altona, Man. — April 2 — The entire business block was
destroyed by fire, causing a loss estimated at $35,000. The
loss is partially covered by insurance.
Bathurst, N.B.— March 26— The White House, the only
remaining hotel in the town, was destroyed by fire. The loss
is estimated at $30,000, with insurance of $18,000.
Cloverdale, N.B. — April 3 — The home of Herbert Adair
was destroyed by fire. There is very little insurance.
Cudworth, Sask. — April 1 — Damage to the extent of $16,-
000 was caused when fire destroyed two large barns on the
farm of F. Danong. Insurance carried amounted to $4,000.
Fredericton, N.B. — March 31 — Firo, which caused dam-
age to the amount of $9,000, broke out in the garage of
Chester A. Brewer at Friel's Bridge, North Devon.
Girvin, Sask. — March 25 — The Methodist church was de-
stroyed by fire. The loss is placed at $5,000, with $2,000' in-
surance. The fire is believed to have been of incendiary
origin.
Glace Bay, N.S. — March 26 — A dwelling on Maple
.A.venue, occupied by Henry Wilton, was destroyed by fire.
The loss is estimated at $800.
Halifa.x, N.S. — March 28 — A building, now occupied by
Dowell Bros, as a garage at the south end of Barrington
Street, was damaged by fire.
Hamilton, Onl.^April 5 — A house, the property of ex-
Constable Curling, at the comer of Sanford Avenue and
Barton Street, was destroyed by fire.
.Millgrove, Ont. — March 30 — Loss of $4,000 was occasioned
when the large bank bam and stables of Kenneth Cummins
were destroyed by fire. The loss is partly covered by insur-
ance.
Montreal, Que. — March 29 — A fire broke out in the
garage of M. Plante and spread to the Dominfon Transport
Co. stables and to the City Ice Co. icehouses at 1 and 3 Ste.
Emelie Street.
April 2 — The premises of the Imperial Knitting Co., 194-
200 De La Roche Street was damaged by fire. The loss is
estimated at $35,000.
Nanaimo, B.C. — March 25 — Mssrs. Malpass and Wilson,
grocers, sustained a loss of $40,000 when their store at the
comer of Haliburton and Needham Streets was destroyed by
fire. The fire was of incendiary origin.
Pembroke, Ont. — March 29 — A fire, originating in the
furnace-room, destroyed the home of Fred P. Moffatt, McKay
Street.
I'ortlock, Ont. — March 25 — A barn on the farm of An-
drew White was struck by lightning and completely destroyed.
The loss is partly covered by insurance.
St. John, N.B. — March 31 — A building at the north-west
corner of Mill and Union Streets, owned by Jas. Morrison,
Cliff Street, was destroyed by fire.
Sandwich, Ont. — March 30 — The residence of Frank
Bradshaw, 68 London Street, was damaged by fire. The loss
is estimated at $800.
Toronto, Ont. — March 31 — A fire broke out in the Par-
liament Buildings. Most of the damage was done by smoke
and water.
Vercheres, Que. — April 5 — Two hundred rowboats were
burnt in a fire which destroyed the boathouse and workshops
of L. St. Pierre and Sons and the general grocery store of
G. B. Dupre. The loss is estimated at $20,000, with insurance
of $3,500.
Walkerville, Ont. — April 3 — A fire broke out in the auto
paintshop of L. G. Beveridge on Erie Street, doing $20,000
damage.
Windsor, Ont. — March 29 — A fire which started in the
basement damaged the home of W. G. Lynch, 651 Ouellette
-Avenue.
Wolfville, N.S.— March 29— The bam belonging to E. C.
Johnson was destroyed by fire. The loss is partly covered by
insurance.
DEBENTURES FOR SALE
TOWN OF VERMILION, ALBERTA
Sealed tenders marked, "Tender on Debentures," will be
received by the undersigned up to Monday, April ISth, for
the two blocks, viz.: (1) $20,000.00 at 6V29'<:, term 20 years,
repayable in 20 equal annual instalments of principal and
interest; purpose, to build fire hall, buy engine and construct
underground water tanks. (2i $6,000.00 at 77r, term 20
years, repayable in 20 equal annual instalments; purpose,
electric light and power extension.
Debentures are a debt on the town at large.
The highest or any tender not necessarily accepted.
Tenders will be opened 8 p.m., April 18th, 1921.
H. P. LONG,
Secretary-Trea surer,
507 Vermilion, Alberta.
VILLAGE OF ACTON
Tenders invited for one set of Debentures for $18,000.00,
payable in thirty years by annual equal instalments (prin-
cipal and interest) at six and one-half per cent, per annum.
Debentures are for completing Waterworks System within
the said Village, the By-law under which the said Debentures
are issued having been approved by the Ontario Railway and
Municipal Board, under Section 400, Subsection 3, of the
Municipal Act. Tenders to reach the undersigned not later
than twelve o'clock noon on Saturday, April 16, 1921. Lowest
or any tender not necessarily accepted.
H. N. FARMER,
Municipal Clerk and Treasurer,
521 Box 335, Acton, Ontario.
Condensed Advertisements
"Positions Wanted,"
5c. per word. Minin:
per insertion. All ci
style. Condensed ad
charged for the
3c per word t all other condensed advertisements
um charge for any condensed advertisement, 65c
jndensed advertisements must conform to usual
on account of the very low rates
n advance: 50 per cen
pay:
if charged.
WANTED. — A young man as Assistant Inspector for
the Province of Nova Scotia. One with experience in in-
specting and schedule rating of fire risks preferred. Apply
stating qualifications and salary asked, to Editor. Box 407,
Monetary Times, Toronto.
SECRETARY-TREASURER, age 30, of large company
in British Columbia, desires connection in similar capacity
with well-established business in Ontario, Hamilton preferred.
First-class accountant, with excellent credentials. The more
responsibility to be assumed, the better. Prepared to go east
immediately for interview for any legitimate proposition.
Apply by wire or letter to H. Anscomb, 1921 Government
Street, Victoria, B.C. 516
EXCHANGE QUOTATIONS
Quotations of exchange on European countries and the
United States as at April 7, 1921, with comparisons, are
given below. The Canadian figures are supplied by the
Imperial Ba^nk of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
Can., Mar. 31. Can., Apr. 7. N.Y., Apr. 7.
London, cheque . . 443.50 438.25 392
France 7.94 7.97 7.13
Germany 1.79 1.82 1.61
Belgium 8.31 8.30 7.43
United States ... 12% p. lliiicp.
THE MONETARY TIMES
Volume 66.
Corporation Finance
Notwithstanding Many Adverse Factors, Steel Company of Canada Profits Show but
Slight Shrinkage— St. Maurice Paper Company Report Reflects Large Growth— Bell
Telephone Rates to be Increased Temporarily — Goodwins Profits Were Larger-
Winnipeg Electric Railway Wins Case Against the City for Sustenance of Fare Rate
I'orlo Uieo Railways Co. — For the first two months of
the current year gross earnings amounted to $222,907, an
increase of 8.20 per cent, over the previous year, while net
earnings totalled $94,501, an increase of $17,856, or 20.68 per
cent, over 1920.
London Street Railway Co. — The Ontario Railway and
Municipal Board has formally arranged to hand back the
London .street railway system to the company on May 1, on
which date the city will be confronted with w&ge and fare
troubles, and a probable tie-up if an agreement cannot be
negotiated in the meantime. Officers of the board state that
after having operated the system for a year they have found
that without higer fa-res the men cannot be given any higher
wages than the present 48-cent scale, and if that is done none
of the improvements sought by the citizens can be financed.
Winnipeg Electric Railway Co. — The Manitoba Court of
Appeal has decided unanimously against the city of Winni-
peg in its appeal to hf-'ve set aside an order for higher fares
by the company, made by P. A. Macdonald, public utilities
commissioner for the province. All taxable costs, regardless
of the statute of limitations, were ordered paid by the city.
The court held that the utilities commissioner had been given
by statute, authority to increase rates so as to m&ke them
just and reasonable, whether or not they were fixed by con-
tract.
The order against which the city appealed went into
effect some months ago. Under its provisions seven cents
is paid for a single fare, and four tickets are sold for 25
cents, with transfer privileges.
Western Grocers, Ltd. — Sales of the company for 1920
showed a satisfactory increase over those of the previous
year, but on account of the weak markets during the last
three months of the ye&r, net profits were not so good, being
$239,655, compared with $324,118 in 1919. The sum of $71,-
658 was credited to special reserve account, the same as in
1919, leaving a balance to be carried forward of $181,772, as
compared with $201,564.
The balance sheet shows few significant changes. Fixed
assets and investments amount to $1,042,301, a decrease of
$193,036. Current assets are shown at $3,874,846, an increase
of $195,629, while current liabilities are $2,334,077, a decrease
of $223,563. All merchandise was taken at replacement
values, but this account shows an increase of $129,338 vA
$1,792,635.
Goodwins, Ltd. — With gross profits amounting to $495,-
212, as compared with $444,942 in 1919 and $336,948 in 1918,
the company on February 2 last, concluded the best year in
its history, from that 'standpoint. After charging off in-
terest and depreciation, earnings available for dividends were
$301,960, against .$274,615 in 1919, $164,894 in 1918, $150,405
in 1917 and $125,074 in 1916. These figures indicate the
steady growth which earnings have shown during the past
few years, the improvement in the two most recent years
being most notable.
It was only in 1920 that the preferred dividends were
resumed, the three quarterly payments from July 1 taking
up $73,500. This left a surplus for the year of $228,461,
which is equivalent to about 11.5 per cent, earned on the
outstanding common stock of $2,250,500. With the addition
of surplus carried forward, this account is raised to $1,-
188,191, as compared with §959,730 at the end of 1919, and
$685,115 the previous year.
The balance sheet also reflects a comfortable financial
position. Working capital is slightly less, surplus current
assets being $1,135,297, as compared with $1,205,428 at the
end of 1919. This showing, however, is explained when it
is seen that some $225,000 has been added to buildings ac-
count, two new stories having' been added, and the addition
of $89,000 to equipment account, all of which have been
paid out of profits accumulated, thus increasing the equity
of the shareholders to a considerable extent.
Ames Holden Felt and Tire Companies, Ltd. — The earn-
ings statements of the Ames Holden Felt Co., Ltd., and of
the Ames Holden Tire Co. Ltd., show a deficit on operations
for the former of $7,227 and for the latter of $46,542. The
felt company reported sales for the year amounting to $151,-
194, and the tire company sales amounting to $224,313, and
in both cases the deficit is shown after providing for bond
and other interest changes.
In his report to shareholders the president states that
the felt plant was not in operation until August last although
large orders had been on the books sufficient to keep the
plant in full operation up to that time. In the meantime the
woo! market had collapsed, so that orders filled during the
last months of the year, showed insufficient profit to provide
for a surplus as stated. The report states that the mild
winter was not conducive to good buying, but that the de-
mand now was showing up well. The tire company suffered
in sympathy with all tire manufE'Cturing concerns during the
slack business last year, but as the company had not been
producing to any extent, losses were not heavy on actual
sales, although the overhead charges were necessarily heavy.
The balance sheet of the felt company shows cash at
$2,042; accounts receivable, $6,956; inventories, $65,615; fixed
assets, $304,434; bills and accounts payable,' $73,438. The
balance sheet of the tire company reports cash on hand at
$3,865; accounts receivable and due by associate companies,
$400,033; investments in war loans, etc., $131,123; fixed as-
sets, goodwill patents, etc., $3,210,188. Bank loans are $759,-
588 and bills payable $78,064.
Bell Telephone Co. of Canada. Ltd. — An increase of 10
per cent, in exchange rates as a temporary measure, has been
granted to the company by the Dominion Board of Railway
Commissioners. The judgment states that the board will re-
tain control of the case. The company is to continue filing
the same monthly reports as at present. Such further
specifi'l reports, if any, as the board may require will be
called for. No exception is taken to the application of a
monthly instead of a quarterly basis of payment as at pre-
sent. Tariffs covering the increases allowed on long dis-
tance, service connection and exchange sei-vice may become
effective on notice under the Railway Act, said notice to be
not less than one week.
In the judgment, which covers 33 typewritten pages, the
assistant chief commissioner, S. J. McLean, summarizes the
application of the telephone company for an increase. The
company had set out that the total telephone revenue was
$15,858,903; that the expenses covering operation, current
maintenance, depreciation and taxes, were $14,086,945, leav-
ing a net telephone revenue of $1,771,958 from which to make
interest and dividends. The net telephone revenue amounted
to 3.418 per cent, on the book value of the total telephone
property in service. Depreciation w&s on the basis of 5.7
per cent., as provided under the board's 1919 award. The
company showed an increase of 16.53 per cent, in prices of
matei-ial on July 1, 1920, as compared with 1918 prices,
quantities used represented a cost of $2,628,067 in 1920, as
against $2,255,090 in 1918.
April 8, 1921
THE MONETARY TIMES
DIVIDENDS AND NOTICES
DOMINION TEXTILE COMPANY, LIMITED
NOTICE OF DIVIDEND
A dividend of one and three-quarter per cent (l%Tr)
on the Preferred Stock of the Dominion Textile Company,
Limited, has been declared for the quarter ending 31st March,
1921, payable April 15th to shareholders of record, March
31sf, 1921.
By Order of the Board.
JAS. H. WEBB,
462 Secretary-Treasurer.
NOVA SCOTIA STEEL AND COAL COMPANY, LTD.
DIVIDEND NOTICE
.■\. dividend of two (2'7e ) per cent, on the Preferred Stock
and one and one-quarter (114'') per cent, on the Ordinary
Stock of the Company has been declared, payable on April
15th, 1921, to shareholders of record at the close of business
on March 31st, 1921.
By Order of the Board.
THOMAS GREEN,
Cashier.
New Glasgow, N.S., March 24th, 1921. 508
THE MERCHANTS BANK OF CANADA
QUARTERLY DIVDEND
A Dividend of Three Per Cent, for the Current Quarter,
being at the rate of Twelve Per Cent, per annum, and a
bonus of One Per Cent, upon the Paid-up Capital Stock of
the Bank, were declared, payable on 2nd May next to share-
holders of record on the evening of ISth April, stock not fully
paid up on 1st February to participate in both dividend and
bonus on the amounts paid up on that date and upon later
payments from the date thereof.
By Order of the Board.
Montreal, 1st April, 1921.
D. C. MACAROW,
General Manager.
518
DETROIT RIVER TUNNEL COMPANY
Detroit, Mich., .^pril 5, 1921.
Notice is hereby given that the Annual Meeting of the
Stockholders of the Detroit River Tunnel Company for the elec-
tion of Directors and the transaction of such other business as
may lawfully come before the meeting will be held at the
Head Office of the Company, Room 300, Michigan Central
Terminal Building, in the City of Detroit, Mich., on the First
Thursday after the first Wednesday (being the 5th day) of
May, 1921, at 10 o'clock a.m., Eastern Standard Time.
MARCUS LOEWS THEATRES, LIMITED
The Directors have declared a dividend of one and three-
quarter per cent. (1%'i ), being at the rate of Seven per
cent. (7''f ) per annum on the preference stock for the quarter
ending 31st March, 1921, payable on the 15th day of April
to shareholders of record on the 31st day of March, 1921.
By Order of the Board.
519
SAMUEL D. FOWLER,
Secretary.
DEBENTURES FOR SALE
TENDERS FOR DEBENTURES
TOWN OF KAMSACK
Tenders will be received by the undersigned up to five
o'clock p.m. on Friday, April 15th, 1921, for the purchase
of $13,400.00 of 15-year 1% Electric Light Debentures. Re-
payable in equal annual instalments of principal and interest.
Neither the highest or any other tender necessarily
accepted.
L. W. ANDREW,
Treasurer,
505 Kamsack, Sask.
TOWN OF NOKOMIS
Town Debentures for Sale: $20,000, fifteen equal annual
payments, interest eight per cent. Can be divided into $5,000
lots. Address offers to
C. L. CAMPBELL,
Town Clerk,
502 Nokomis, Sask.
CITY OF ST. BONIFACE
DEBENTURES
Sealed tendei-s, addressed to the undersigned, and marked
on the outside, "Tenders for Debentures," will be received up
to Eight o'clock p.m. on Monday, the 25th day of April, 1921,
for the purchase of the following debentures to pay for Local
Improvements, Bridge and Waterworks: —
Date of Issue — 2nd January, 1921
30-year Bridge, 5% $150,000.00
20-year Waterworks, 6% ■ 50,000.00
15-year Pavement, 6^c 70,548.00
10-year Pavement. 60f 2,685.00
$273,233.00
517
EDWARD F. STEPHENSON,
Secretai^v.
Principal payable at the end of the term.
Coupons for interest attached.
Interest payable half-yearly on July 2rd and January 2nd.
Principal and Interest payable at: —
Banque d'Hochelaga, St. Boniface and Winnipeg, Man.,
and Montreal, Que.
Canadian Bank of Commerce, Toronto, Ont.
Clydesdale Bank, Limited, London, England.
Debenture and Coupons expressed in Sterling and Cana-
dian currency and of denominations desired by pui'chaser.
Purchaser to pay accrued interest, take delivery and make
payment in St. Boniface or Winnipeg, in Manitoba, Canada.
Total amount of bid to be expressed in Dollars and Cents.
No tender necessarily accepted.
ERNEST GAGNON,
City Clerk.
St. Boniface, Man., 2nd April, 1921. r,20
THE MONETARY TIMES
Volume 66
The computation submitted by the company &s to operat-
ing revenue and expenses, based on a projected year showed
earnings which would be $3,300,000 short of meeting interest
and dividends after other necessary deductions had been
made. The estimate of annual requirements showed that
the company would fall short of earning 5.7 per cent, de-
precip-'tion (the emergency rate fixed by the board) for the
year 1920 by over $1,500,000. It already had fallen behind
for the period January 1 to July 31 by $492,200.
The outstanding feature of the judgment is that the
company will be allowed to earn its 8 per cent, dividend,
plus a surplus of 2 per cent, or more annually, under certain
circumstances.
St. Maurice Paper Co., Ltd. — From every standpoint the
1920 report of the company is indicative of the prosperity
of the pulp and paper industry last year. Gross profits com-
prising operating earnings and income from miscellaneous
sources, including that accruing through the existing high
rates on New York funds, amounted to $2,976,636, or more
than double those of the preceding period, when the total
reached $1,418,804, the actual gain being $1,557,832. After
deductions, including depreciation allowance and the setting
aside of the $800,000 out of the year's profits as a reserve
for contingencies and government taxation, against $100,000
a year ago, the net profit for 1920 amounted to $1,769,988,
compared with $563,924 in 1919, or more than treble. The
year's net was equivalent to 22.68 per cent, on the increased
capital stock outstanding, aggregating as at December 31
last $7,899,900, against 11.27 per cent, in 1919 on a capital
of $5,000,000.
During the year there was distributed among the share-
holders of the company a stock bonus of $1,512,900, while
two quai-fcerly payments of 1% per cent, each and two of 2
per cent, each, as well as a special dividend of 5 per cent.,
were paid in cash in the twelve months. These distributions,
aggregating $2,301,677, figuring the stock bonus at parity,
compared with $187,500 in 1919, when the payments amounted
to 3% per cent, on the outstanding capitalization. All re-
quirements met, surplus account at the end of 1920 showed
a balance of $1,246,450, compared with $1,788,139 a year
ago.
The balance-sheet discloses a position of increased
strength, net current assets at the end of 1920 being upward
of $3,300,000, against slightly under $2,450,000 in last year's
showing. Inventories and expenditures on logging operations
totalled $2,863,689, an increase of nearly $400,000 over the
1920 figures, while bank loans, appearing at $475,000 in the
1919 statement, find no counterpart in the 1920 figures. Prop-
erties, timber limits, equipment, etc., are shown in the state-
ment under review at $8,053,038, net additions during the
twelve months involving an outlay of $1,002,850. The capital
stock of the company was, as already stated, increased from
$5,000,000 to $7,899,900, the change in this respect being
due to the distribution of the 30 per cent, stock dividend and
the exchange of all but $47,000 of the outstanding bonds,
shown a year ago at $1,440,000 into the common stock of the
enterprise on a par for par basis during the year.
Steel Co. of Canada. — Increased freight rates, labor con-
ditions and fuel trouble were three adverse factors which the
company had to contend with in 1920, but notwithstanding,
only a very slight shrinkage in profits is reported. After
deducting charges for repairs, maintenance, improvements,
and making provision for inventory, reserve and 1920 in-
come tax, the results of the twelve months' operations
amounted to $3,924,401, as compared with $4,000,940 in 1919,
and $5,367,120 in the preceding year.
From the 1920 gross figures were deducted an amount of
$652,255 as a provision for excess costs of construction due
to the abnormal conditions existing during the year, as well
as a generous allowance of $712,683 for depreciation. These
provisions, together with sinking fund requirements and
fixed charges, left net earnings of $1,855,404, against $2,-
382,171 in 1919, the latter year's showing in this respect
being enhanced by the fact that no allowance was made for
the writing off of any allowance fo'' excessive building costs.
After the payment of dividends on the preferred stock
of the company there was left available for application to
the common shares a balance of $1,400,663, which, however,
was redOced by $50,000 transferred to the fire insurance
reserve, leaving the net sum of $1,350,663, representing an
earning capacity of 11.7 per cent, on the junior securities,
compared with 14.6 per cent, in 1919, 15.8 per cent, in 1918,
and 19.5 per cent, in 1917. All deductions provided for, in-
cluding 7 per cent, dividends on the common stock, there re-
mained a surplus at the end of the year amounting to $545,-
663 to add to the balance standing to the credit of profit
and loss account, as at December 31, 1919, bringing this
up to the highly substantial figure of $8,740,965, or in excess
of 48 per cent, of the company's combined preferred and
common stocks.
Turning to the balance sheet portion of the report, dis-
closes a good financial position. Net current assets are
given at $10,670,924, compared with $11,199,.595 in 1919, cash
holdings being shown at $669,434, against an excess of
$2,000,000 in 1919, the reduction in this respect being offset
by a secured call loan of $1,000,000 which had no counter-
part in the figures of the previous year, and by an increase
in accounts and bills payable of well over $1,000,000, which
stood at $5,488,207 in the statement under review, compared
with $4,331,948 at the end of 1919. Inventories were re-
duced by almost $700,000, falling from $5,503,833 in 1919
to $4,804,469 on December 31 last. Reserves, including de-
preciation account and sinking fund, aggregate $9,880,008,
with surplus, already referred to, amounting to $8,740,965,
the former having been increased by over $900,000 in the
year, and the latter by an excess of $545,000.
ADfilTIONAL INFORMATION CONCERNING FIRES
(For Recent Fires see page kl)
Beamsville, Ont. — March 10 — The bakery of F. J. Brown
and Co. was damaged by fire. The fire was caused by some
lard used in frying, boiling over and catching fire. The total
loss is $900, with insurance of $3,500 in the Wellington and
Continental Fire insurance companies.
Kitchener, Ont. — March 9 — The fire which da-maged the
Jazen Block was caused by a cigarette butt throvni in a pile
of rubbish. The total loss is $14,850, with insurance of
$116,000.
Manitoba. — The fii'e commissioner's statement for the
month of February states that during the month there were
139 fires, with a loss of $484,114. During the month there
was one fatality. The following is the class of structure de-
stroyed or damaged: Dwellings 59, stores 16, farm buildings
12, hotels 7, schools 5, warehouses 5, garages 5, apartment
buildings 3.
Ottawa. Ont. — February 1 — The roof on R. D. Baker's
residence caught fire from sparks from the chimney doing
$450 damage.
Paudash Lake, Ont. — March 10 — Two bams and a drive-
shed belonging to Robert J. Wadsworth were destroyed by
a fire which was caused by one insane. The loss is $1,700,,
with insurance of $565 in the Norwich Union Fire.
St. John's, Nfld.— February 19— The Roman Catholic
Palace was destroyed by fire, with a loss of $70,000 and in-
surance of $17,000.
Toronto, Ont. — During the month of March there were
185 alarms, with an estimated loss of $11,017. Chimneys
caused 16 fires and stoves and furnaces 14.
Wingham, Ont. — March 14^The assembly room belong-
ing to C. Lloyd and Son was damaged by fire. The loss is
$2,200, with insurance of $700 in the Perth Mutual, Welling-
ton, Waterloo, Economicr.'l and Merchant Fire insurance com-
panies.
The assets of the Wilt Tydst Drill Company of Canada,
Ltd., Walkerville, Ont., will be sold by public auction on
April 14 by the liquidator, E. M. McLean.
Pnn.liHKD EVRRV Fkidav
The Monetary Times
Printing Company
of Canada, Limiteu
l>uMjNil..-l-. 3!S,-, ,.l
"The Canadian Engineer"
Trade Review and Insurance Chronicie
of Canada
Established I8ti';
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
Assistant General Managfer
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
Records Established by Insurance in 1920
Preliminary Figures of Insurance Department for Companies Operating
Under Dominion License — Life Companies Business in Force 82,657,037,219,
and Net Premium Income $90,212,934— Fire Business in Force $5,971,330,272,
Premiums $50,565,856 and Losses $22,931,129 — Casualty Lines Grew
PRELIMINARY figures just issued by the Department of
Insurance. Ott^iwa, for all companies operating under
Dominion license show that in 1920 new records were estab-
lished in practically every line of insurance. The detailed
liguies are given elsewhere in this issue. The life results,
in comparison with 1919, may be summarized as follows: —
1919.
1920.
Net premium income $ 74,708,509
$ 90,212,934
New policies issued (number) 641,251
655,176
New policies issued (net
amount $ 517,863,639
$ 630,110,900
Net amount in force 2,187,837,317
2,657,037,219
Claims 28,077,092
25,719,402
The net amount of life business in force was estimated
by T. A. Dark, w^riting in The Monetary Times of January
7, 1921, at $2,637,000,000. This, it will be observed, was
very close to the actual amount as shown above. Mr. Dark
expressed the view that mortality experience would be still
more favorable; this i.s also borne out, the claims paid be-
ing sub.«tantiall.v less in spite of the large increase in busi-
ness in force.
The detailed figures also make pos.sible a comparison of
the relative progress made by the Canadian, British and
Foreign companies. The Canadian companies increased their
net business in force by $370,975,561, or 21.7 per cent., the
Biitish companies by $9,986,752, or 14.9 per cent., and the
Foreign companies by $157,496,107, or 28 per cent, the in-
ciea.se in the total (Canadian business onlv) being $469,199,-
902, or 21.5 per cent.
The fire insurance results may be shown briefly as
follows: —
1919.
Net premiums $ 40,031,474
Net amount at risk 4,923,024,381
Net losses 16,778,373
1920.
5 50,565,856
5,971,330,272
22,931,129
By provinces, the net premiums and losses were as
follows: —
Net losses are in the ratio of 45.3 per cent, to premiums.
With the exception of 1919 this is the lowest ratio since
1906, the figure for recent years being as follows: 1919,
41.67; 1918, 53.84; 1917, 52.42; 1916, .54.40; 1915, 53.49;
1914, 55.81; 1913, 54.39; 1912, 52.25. The increase was not
unexpected, as fire losses in 1920 were known to be well
ahead of 1919. The Monetary Times' estimate for last year
was $27,371,000, compared with $23,207,000 in 1919, and
$31,815,000 in 1918. These are of course estimates of the
total fire loss in Canada, and are naturally well above the
losses met by the insurance conpanies. The variation from
year to year, however, closely follows the insurance experi-
ence.
The following is a summary of the casualty results: —
Losses Reserve
Premiums , Incurred for
for the During ("laims Unsettled
year. the year. Paid. Claims
Accident $2,340,732 $ 905,033 $ 949,711 $245,868
.Accident and sick-
ness 1,073,158
Casualty
-Automobile (A)
(B)
Burglary
Liability
Explosion
Forgery
488,118
2,366,540
2,886,941
481,006
3,161,a77
172,173
636
Guarantee 1,272,462
Guarantee Co. of
North America. . . 343,700
Hail 5,796,502
Inland transp 423,845
Live stock 111,446
Plate glass 690,079
Sickness 1,576,317
Sprinkler leakage . . 98,804
Steam boiler 323,485
Title
Tornado 158,321
545,740
208,028
1,2.50,241
1,598,768
244,014
1,628,213
543,358
208,028
1,186,655
1,506.614
203,983
1,535,311
87,042
35,000
212,658
439,584
59,283
943,016
312,477
46,099
2,370,932
223,970
52,860
411,813
1,051,506
68,491
17,524
178,035 326,193
62,634
2,377,801
211,674
49,587
409,393
1,073,991
72,753
16,130
56,216
3,550
48,517
8,792
48,160
170,098
14,169
3,639
P.E.I.
Alta. B.C. Man. N.B. N.S. Ont.
Net premiums. $ $ $ $ $ $ $
Canadian cos. . . . 966,709 895,417 980,889 479,746 617,507 4,182,061 42,674
British cos 1,652,913 2,404,947 1,760,069 1,253,599 1,127,889 9,119,743 129,931
Foreign cos 1,363,454 2,170,204 1,494,526 1,078,751 1,212,974 4,885,576 66,005
Que.
29,155 155,931 31,943
Sask. Yukon. Totals.
2,378,187 1,279,689 1,852 11,824,731
6,230,307 1,721,139 1,913*25,479,181
3,851,880 1,345,577 3,173 17,472,120
Totals 3.983,076 5,470,568 4,235,484 2,812,096 2,953,370 18,187,380 238,610 12,460,374 4,346,405 6,938 54,776,032
*Including $76,731 premiums which cannot be separated according to provinces.
Net losses.
Canadian cos. . . . 304,191 254,281 384,263 363,350 376,402 1,585,982 10,892
British cos 606,798 677,731 711,593 847,639 741,271 3,491,062 32,813
Foreign cos 463,461 723,659 640,119 651,814 943,985 1,922,233 40,586
Totals 1,374,450 1,655,671 1,735,975 1,862,803 2,061,658 6,999,277 84,291
t$57,294, including losses, which cannot be separated according to pro\'inces.
1,294,874 502.286 None 5,076,521
3,418,379 676,675 24111,261,279
2,384,909 607,055 5,259 8,383,080
7,098,162 1,786,016 5,283 24,720,880
THE MONETARY TIMES Volume 66
1920 LIFE INSURANCE BUSINESS IN CANADA
"lolmmwini ,
uionulofrun
■.p..Ird..sl„vo.;.orUi
\Vr ravn.oM«.|i..
i.7(w a^.-wii-jas
Mmumt Endowment \ni.ii.f
nroth En.irtw. and Co(Hr.i.
787,402 433. 5W 1.233,(10:1 1? «'' lOS.SiV.
208.755 3fi.453 263.672 W),88.S S'i.278
MH.liS 470.052 1.497.275 113, 3M 1%.0»4
76,5.M hS 135 123, 4« I.StfO '.'3.500
127 887 34 500 1S1.A28 IW 1.1.105
205.655 120".407 -J28.370 442 40.145
5,244 181,806 733.1
r7^o iwisee 82b!c
i,ll7 64. 4« 301.!
).I35 276,008
1.647 1.127.642
l!647 1.22l!30^
1,474 1,683,434 6S1.305
. 1,568 2.399.389 907. 087
3,(M2 4,082.823 1.588.362
pv..lk-rsnfCm
Toti.N f.if
S'LiverpooI and London and (
fi I/ondon and Scottish--. ,
riMutuiil Life andCitiiens" lA
8 North British and Mercanti
7.356.72R
1.4.12.41)0
8,789. 12A
3.027.149
1.432.400
B. 576. 828 .
!).!I2I.726
10,385.522 4.241.015 14. 493.1
1.480 503.023. 675 4^.144.1
1.277.250 2.083.037.584
t.l06 9.564.100 4.S00.661 17.4
1.853 3,728,772 1.784.122 5.7
S.fl59 13,292.932 6.503.683 23,1
l.l2Si 25.875.218'
B.987J a,064.4,'i7.I
u— Life Association of Scotland. April 5, 1920.
Mutual Lire and Citiiens*. Nov. 30. 1920.
etandard, Nov. 1$, 1S20.
8,466 17. 107.1
I.4S0 14.093.204
9.930
31.633 .
16.021
"J;i
■ ■^:
I.MS
3.506,394 3.2
"1
9.73I
23.479
2I.921.S2<
1.12.668
39?
13;372
"34-.'828
7..W7
8.015
862.304
„,3.
Vm
?;255:5;?
..Jm
M.7<3
15.9S7.383 U.9
11.2M.391 lO.r
76.03«
1.872
50.S9I
«.M2
76.894.816
SS .908 .064
897 1
n5'.l39
ID-.mi
1.918.850
H:S
«?:S !.!..s
i XI. sm
S19,
5.9»7i
t.m.mi I.-2
si.ise
L
a,159<
9.988. 752J
m
4. 684 J
15,937.
32,922,
2.53!,;
,9,o,.M .-.m
t Group
7" Nat 101
iO'Phocni
30.920
2.304.043
3.673.730
3.472
40.813 .
S. 709. 333
1.764.041
394.950
5.000
2.499.325
8.800,007 8.800.0
1.08S.00O 1,054.0
39.000 29.000
S. 709, 333
1.764,041.
391.950
6,000
i. 277. 277-
8.800.007.
1,054.000
170.5<2.091
17.7$7.S.'iS
51.306.888
22.320
115.475.957
iSilS
961.866
77,878.496
96,738.340
I.531!M2
46.217.1«7
10.459.300
■J, 017. 036
787. 796
. 30.234.734
25.380.673
40'.06a
431,921 228.257,528
433.968 193.128,530
227.615.096
192.649.319
3,444,160 915,793.706
2.200.603 758.297.691
2?:m
6. .530. 363
O.U8.036
2,505.974
2,091.535
(■.727.110
44;530
492.256
852,393
'i?:™
. 4.854.06W
19.007tf
2,047. 35.128.998
34.965.777,
243.5631 157.496. 107i
3.1.50,
2»2,326i
411.139,
560.2713
4.117,1
360.137.
97,079
, ?,',&
206.246
238.083
655.176 641.778.095
641.251 524.S43.G29
130.110.900
S17.eS3.630
3.571.003 2.657.037.219
3.190.324 Z.187.837,317
12.J5J
18.02S.3ia
7.11S.9I3 2
7.SS8.057 3
i:V,lZ
J40. 136
•58.737
3'.133;i90
I'SiJS
15 504 41M
M.mi
13 915,117.234.466
I12.247,26l'.
383,6791 469.199.902.
1.066.
l.ogg.oou
170.01«
i.m.tm
18.6014
561.0(13.
61.033
-A11Conr,p.fl.«.
(included above).
■2\3i 55.186,1051 55.i86.l05
2031 05,414.236 .
April 15, 1921
THE MONETARY TIMES
1920 FIRE INSURANCE BUSINESS IN CANADA
Canadian Companies
Re- Grose Net amouftt ReartVe for
Net cash insurance Gross oa«h amount of Net amount of losses Net ''amount Unsettled LosHes
received tor and return received for policies at risk incurred paid
Premiums Premiums Premiums new and at date during the for losses
n-od
Year
Not
sted Resisted
1 Acadia Fire 230, 141
2 Antigotlish Farmers . 3.326
3 Beaver Fire 34.760
4 British America 902. 603
5 British Colonial • 222, 950
6 British Northwestern 158. 030
7 Canada Accident and Fire 120.515
8 Canada National 204, 988
9 Canada Security 68. 354
10 Canadian Fire. 368.484
11 Canadian Indemnity 116,107
12 Canadian Lumbermen's 2.503
13 'Canadian Surety None
14 Cumberland Farmers 1.906
15 Dominion Fire 436. 154
16 Dominion of Canada Guarantee and Accident 78. 343
17 Fire Insurance Co. of Canada 184.637
18 General Accident of Canada 48.036
19 Globe Indemnity 193. |81
20 Grain Insurance 201.490
21 Guardian Insurance Co. of Canada 62. 729
22 Halifax Fire 30. 760
23 Hudson Bay , 228.808
24 •Imperial Guarantee and Accident None
25 Impcri;il Underwriters 150.047
26 Kings Mutual 20.308
27 Liverpool Manitoba 313. 849
28 'London and Lancashire Guarantee and Accident None
29 London Mutual 508. 873
30 Mercantile 360. 788
31 Mount Royal 629.200
32 Mutual Fire 20, 253
33 'North American Accident None
34 North Empire 157.950
35 Northwest 163.833
36 Occidental 247.729
37 PacificCoaat 153.675
.38 Pacific Marino 9.018
39 Pictou County Farmers' 4.365
40 Quebec 376. 749
41 Reliance 487
42 Scottish Canadian None
'.3 Western 917.483
Totals tor 1920 7.992.418
Totals for 1919 6,415,838
273.076
None
79.131
609.429
281,406
88.320
216.764
187.241
141.393
378.977
41.619
42.269
None
43
365.613
39.757
281.154
54.740
265.233
None
168.455
16.995
196.366
None
194.605
778
257.981
None
446.427
59.616
611.828
1,294
None
277,099
125.510
275.770
163.658
5.031
54.247
503.217
3,326
113,891
1.512,032
504,356
246.350
337.279
392.229
209.747
747,461
157,726
44,772
1,949
801.767
118.100
465.791
102.776
458.414
201,490
231,184
47.755
425,174
None
344.652
21.086
571.830
None
1.015.300
420.404
1.241.028
21.547
None
435.055
289.343
523,499
316.333
14.049
4.365
440.996
487
No
1.571.537 2.489.020
39.463.850
397.850
9.118.068
140.517,0,'i6
37.332.623
34.238.468
31,077,794
26,364,244
26,297,974
54.474,030
13,745,270
1,818,354
None
190,6,50
64, 859, 2. '8
12.. 5.52. 463
49.906,578
14.596.072
45.337.106
65.279.297
21.376,221
3.072.465
32.654.5J9
None
38.826.703
1.793.825
49.908.233
106.481,592
42,385.625
107.314.248
959.061
36.516.702
25,233.226
40.. 54 1.442
29.161,442
1.329.687
569.400
113.173.003
165.606
182.404.172
27.818.608
741. 14S
5.043.334
120.454.101
27.770.907
21.756.531
13.774.717
26.266.747
7.930.262
45.680.829
10.904.398
None
None
527.425
61.399.436
15.752.945
22.010,633
16,682,000
27,227,633
16.658.227
3.800.185
3.268.859
23.528,258
19,938,990
4,778,200
37,803.244
None
93.724,772
40.988.113
85.232.833
1.173.600
None
14.634.722
20.214.251
23.976.638
18,658,720
903,339
1,474,900
113.865.634
165.606
None
136.217.668
101.816
1.000
7.950
331.444
118.831
61.753
55.618
66.555
38.291
121.107
38.878
None
1,238
193.225
23.738
81.469
17,207
67,643
53.702
30.452
17.450
94.264
None
None
247.512
133.943
292.222
8.630
None
100.849
66,177
103,887
60,948
.107
99.672
1.170
7.153
383.299
119.324
52.726
"51.098
61.282
28.404
117,476
28,431
None
None
1,238
182,430
23,627
83,240
16.960
63.994
29.002
24.480
13.201
89.434
None
67.5.54
4.232
96,659
None
255.096
IM.031
277,151
8.630
None
92.124
63. 167
92,207
54,276
1,106
2,761
178,862
None
380,942
12,945
2,513
57.719
8.413
11,196
10,019
10,773
10,302
13,932
11,074
455
9,797
2.031
14.544
24.700
5.627
5.275
16.068
None
_ 11.767
17.470
None
8.957
21.302
27.211
None
None
14,961
13.661
19.409
13,516
1
12
9,514
None
None
64,256
2,960
5,722
None
None
None
None
1.000 21
22
No
None
None 24
None 25
None 2fl
None 27
None 28
2,250 29
None 30
820 31
None 32
None 33
500 34
None 35
None 30
None 37
None 38
None 39
4,000 40
None 4 1
None 42
10,250 43
7.783.362 15,775.7801,502,434,1831.112,748.411 3.287.170 3.206.439 451.579
27,508
5,672,852 12,088,9901,170,734,162 863,788,586 2.M3.691 2.T36.223 405,538 41. 636
Britisli Companies
.Vllinnce
; .\tla3
1 British Crown...
1 British General.,
i British Traders... .
I Caledonian .
' Car and General. .
I Century
I China. .
I Commercial I'nion
Eagle. Star and British Dominions
! Employers' Liability
I Essex and Suffolk .
1 General Accident Firt-
> Guardian .Vssurnnce ,
I Law, Union nn.l Rock
' I,iveTpool and Ix)ndon and Globe.. ,
1 l/ondon Guarantee
( lyondon and Lancashire. .
) T.ondon .\3flurance
1 'Marine.
; Merchants Marine
1 'Motor Union..
I National Benefit,.
> National Prov. Plate Glass
t North British and Mercantile
f Northern Assurance.. ,
! Norwich Union Fire
> Ocean. Accident and Guarantee. .
1 Palatine ,
1 Phirnii of Tx)ndon
2 Provincial
\ Oueensland. .
1 Railway PasHcniiers
1 Royal Ejchanze
^ Roval Insurance.
r Roval Scottish
^ Scottish Metropolitan .
9 Scottish Union
9 Sun Insurance
1 Traders and Ge
I ITnion of Cr
i 'Union Mari
i Yan«t«2e. .
i Yorkshire.
Sorii
Totals for 1920..
Tbtalsfor 1919..
428.771
57.618
486. 3«« 50.118.433 56.608.384
207.819
190. »S2
30.800
13.. ',00
1
751. 2«3
155.965
907.228 74.460.508 88.413.813
273.737
264.202
None
2.750
-
625.28a
245,897
771.184 64.471.701 54.502.958
335.749
107.560
58,848
166.408 31. 432.086 10,540.402
33.79S
29.1.52
2.000
10.000
270.720
65,727
3.36,447 28. 492.. 549 24.882.797
121.630
123.9.54
196.330
719.876 67.809.630 74.192.274
207.469
213.115
139.339
94.844
234.183 87.350.298 12.5,58.402
46.992
45,411
None
109.995
401.018 36.492.455 23.6.58,729
140,329
118.63?
9.936
9.841
19,777 1,039,497 643.122
2,054
554
1.183.676
330.358
1.514,034 151,691,926 151,577,490
.580.044
,582.640
449.392
197.461
646,8.53 89.S23.7« 51.991,753
180.378
161. S73
832.2.58
198.388
1,030,646 103.768,446 101,004.264
415 143
401.7''3
49.393
.52,989
102,382 10.08S.S69 5.078.174
7.30,5
4.377
581.. 523
123.102
704.625 62.280.274 61.512.085
286.623
273.158
328.131
2,081,985 183,017,498 188,240.520
705.351
740.270
339.603
77.653
417.256 44.581.203 46.229.564
134.310
117.766
15.188
1 658.1.'!1
3.58.348
2.016.529 189.568.900 213.404.196
739.516
735.060
859.995
193.279
1.053.274 84.905.674 76.266.092
.513.469
.511.800
None
1.107.974
213.320
1.321.294 135.880.497 143.670,203
564.044
,549. 9'>''
103.288
738.189 71.542.280 77.441.180
245.994
220,440
49.179
None
None None . None
Mone
None
None
None
None
None
None
None
None
None
None
None
None
.52.323
25.249
77. .572 5.400.000 4.640,000
39.4')7
18.4111
None
17.414
10.341
27,757 4,658.233 2.068.220
62
62
None
None
25
1.2.52.238
282,278
1.534.516 141.795.180 1.56.387.233
575.811
616. 9*3
1,214.346
201.. 535
1.415.881 124.166.090 1.37.152.917
594 . 964
.577,075
1,179,151
203.914
1,383.065 116.691.873 132.765.977
4.55.396
4S5.1';-
70.078
23. 503
390.702 44,077.867 43, 0.52., 545
165.508
171. .549
487,715
122.653
610,368 56.268.871 53. 905. 808
249.920
246.. 5.58
19.270
1,297.218
4'6.497
1.733.715 143.616.566 169.155.517
402.096
363., 527
58.107
153 0.53
21.282
174.335 18.6.55.252 17.949.659
64.452
M
280 , 674
61.554
342.228 32.213.567 24.842.380
121.608
IOf.359
20,848
None
None
800,730
163.551
964 281 108 060.767 98.698,092
3.50.864
351.. 551
2,17«.3S2
476.2.57
2,6.54.6-39 2.36.836,477 284.026,246
897. 2.'; 1
856.790
37
28.216
201. .574 22.612.738 16.193.0.58
80.467
25.121
144.775 13.694,738 10.903.294
34,243
464.627
98.688
563,315 57,827. 4S» 66.541.218
195, 186
I 75.. 581
203.773
1.046,277 99,476,150 99.088,673
352. IIS
47,903
9.972
57.875 6.9.33.058 5.595.961
7.789
4.656
None
245.560
1.023,876 95.289,977 90.207.836
320.. 589
.547,274
137.563
684.837 66 9*8.619 57.770.634
277,272
255.081
42,712
None
None
None
15.067
7.160
22,227 1.. 304. 602 920.502
444
444
None
None
558,235
100.582
658.817 53.458.618 68.473.310
364,061
25,325.678
6.056.633
4.819.540
31.382.3112.988.741.2383.002.755.482 11.261,279 10.954.885
1,626.383
165.136
20,377,871
25. 19r.4112.432,641, 4762.570.277.383
8,629.793
8,38T,864
1.201,621
404,121
"Some Dangers of the Street" and "The Traffic Officer's
Troubles" are two pamphlets just issued by the Travellers
Insurance Company, of Hartford. Copies may be secured
from the Canadian office, 1.5 King Street West, Toronto.
The Northern Customs Concentrator Company, of Co-
balt, has assigned to E. R. C. Clarkson and Co. It is said
the company will be reorganized. A. J. Young is head of the
concern, which formerly operated a mill at Cobalt.
THE MONETARY TIMES
Volume 66
1920 FIRE INSURANCE BUSINESS IN CANADA
No.
Foreign Coiiipdiiic.v
Net wish insurance Cross r«sli amoimt of Net Amount _ of lo^;
received for and return received for policies ftt. risk inciirre
Premiums Premiums Premiums new and at date diirinc t
i.il
; American Kriuitahle
' American Insurance
; American Moyd'e
I Ilnslon
I Cilc.lnnian-Amcrican
('.,l;r,.rnia
' Citizens of Missouri
; Tolumhia
; rnmniercial Vnion of N.Y..
t Connect icut ^
, Continental
Fntiitable Fire and Marine..
T''i<Ie1itv-Phcnil
Fire Association of Phila....
I Fireman's Fund
I Tnsur
;? General of P«
niohc * Rulwrs 1.077.8.'iP
C.reit American
Tfnrd«-are Dealers
,;2.'i H:irtf..rfl Fi
1, nf State of Pa,,
■s Ilnderwritine f
m T.umbermen's.
le Woodworkers
nd Traders
■rs Nntional
e«ota Tmnlement
nnal-Tlen Franklin. . .
nnni Fire of H.artford .
nn-il Tihertv
nnnl T'nion
■ .Ier,"e
Northwestern Mutual.. .
Nortliwe^tern National.
I Phenii of Paris
Phfrnirof llnriroril
Pnividence WnshinRton
Ouwn nf America
Ret.ail Hnrdware
I St. Paul Fire 4 Marine
; Sorinefield Fire and Mar
■ Sterline
{ .'^tuvvesant
I ToVio
) I/flnion of Paris
I Tnitert Stales Fin-
; Vulcan
) Westchester
.S6fl,47.S
164,510
.■il,.')5S
17.758
204.367
93.7.38
fi.SSO
24.641
2.';6.91.'i
.57.421
78. .5<t6
18.405
Rri.4.to
3'. 690
17.534
2.473
122.26.1
81.840
18.047
37.430
107.106
30.674
41.005
11.480
43.0Q';
29 1''3
7.R01
0.044
201.204
127.661
557.9.30
297. '86
62.635
207.301
524.320
241.511
77.237
27.538
251.6.14
59.841
144.731
24.140
171.370
92.879
36.52S
10.845
237.816
124.806
1.077.8.50
326.868
611.855
230.678
1.168
250
1.301.845
370 871
1.8''1.«67
467 071
978.757
410.750
202 374
48. 697
240.630
75.632
193.695
76 570
74 156
4.664
36 611
25.764
107.966
20.778
40 037
12.464
1.16R
2.59
173 030
30 312
774.726
254.297
607
OR
200 804
81. "17
6'>« OSO
91 ,547
11.5.618
f\ 400
90.2.35
.54 771
363 333
2''6.764
OS 010
H.005
312.4-16
40.929
204.9.55
119.313
46.8 319
351.088
320 332
87.298
806.787
184.0.52
1.1 68
250
429.363
188.642
451.810
269.731
None-
111.860
35.786
7.629
482
332.613
65.2.56
173.016
41.604
97.018
38. 1.59
2S8.789
163.402
733,985 71.298,7.57 68.801.682
49.316 2.269.806 2.1.59.990
298.105 35.040.741 25.608,167
31.0.30 I.710.7S7 440.7.54
314.406 32.111.300 23 986.772
97.001 11. 245. .576 7.716037
95.179 7. .571. 841 6 145 296
20.007 4.907.718 4.335.71R
204.105 14.314,809 9.077.182
55.477 6.487.006 2.5.53.6,56
146,780 18.004.072 9.772.864
.52,485 3.261.429 3.313. ISO
72.218 10.204.051 7.972.993
16.845 1.0.59.791 9.33.044
328.865 30.261,591 26.038.206
855.225 88,305.470 62.022.436
269.937 26.804. .553 7.104.3.57
765.831 75.331.376 56.415.822
104.775 8.348.298 6.9.55.286
311.495 29.340.4.58 29,283.275
168.880 14.470.525 16.669.3.54
264.249 30.803.974 18.164.0,57
47.373 4.608,405 3, ,503,430
362.712 41.638.963 25. 366, .505
1,404.727 158,149.984 114.277,035
(42,533 85.710.018 70.090.293
1 427 91,801 85 401
1.762,716 1S1.691.614 171.879 717
2 29'J.7-!S 1S6.8''".'\I1 175, 0S4 556
1 3S9 507 176,551 405 132,507 900
251 071 2S 0O7 B46 20,775 227
316 262 18,287 323 12 461.5.88
270 265 13.4''1.474 10.076.746
7S 820 5.468 225 4.854 900
62 375 1,S34 628 1.261 49S
128 744 13.801.450 12. 44" 2.83
52 501 3.738 4''5 3 379 672
1.4''7 oi.ROl 85 401
203 342 16.857 170 2? 0''4 841
1 029 023 78.290.9.57 75. 50" 830
705 160 600 156 600
372.021 .34.497 883 "7 148 446
717. 6"7 66,6"2.743 70 600 675
200 09R 18 000,518 10 128,740
145 006 12 352,243 7,146,529
11(1 "77 10 816 90« 1-20 009
590.097 59,667 196 37.921.990
113.935 7 063,501 6,955 "^3
3.53.385 28,830.750 37.115.7!'4
324 268 33.460.789 20.664.127
810.407 79,462.852 .59.285 489
407.630 39. .524. 362 27.908.235
990.839 84.735.2.56 99.072.651
1.427 91,801 85,401
618,005 68.475.602 49,998.567
721,541 75.975.336 56,045,221
None 385,410 376.610
147,655 12,740,267 10.578 7S4
8.111 2.883.467 2.386,317
397.869 40.142.420 25. .572, 660
214.620 25.734.342 19.346,358
136.077 15.149,069 7,481,8.56
452.191 43.057.353 26.629.183
255.1.50
4.. 581
109,103
1.873
111.345
49, ,RQ
22 RSO
6.595
79.680
996
18.9.52
9,. 581
8,710
1.761
80.105
281 . 352
22.091
302.807
30,377
188,120
SS,017
78 706
22.402
99,635
497 0S2
412.773
93
693 605
1 021 010
4RS 007
6 032
58 651
28. 284
OS
57 535
434,604
" 000
139.S0R
285.900
11.745
51.693
1« R64
162.524
11.1"1
106.4RR
87.. 530
160.. 545
161.866
328.443
93
44 173
5.909
171.901
60.9.56
38 .592
116.881
224.576
3.. 568
106.0.55
0.52
98, 753
35.5'0
22,.S71
6. 652
68.795
244
4 101
1.711
75.. 579
282.607
10.973
284.520
29.074
232,113
63.712
70 446
17,844
100,917
75 416
187 .507
63.675
46.456
115.746
260 340
38 717
50.764
17 "6"
164.108
1 5. S'1
103.624
80.391
161.423
1.58.935
308.698
93
167.945
214.029
None
161.7.34
15.359
30.217
109.850
,57.129
2.029
17.944
1.800
3.909
9.745
None
' None
None
2.612
210
15.191
30.817
3.731
45.8.59
6,291
28,813
33.1,57
12,345
5,900
20,907
100.626
124.300
None
143.672
241.270
R4 621
27.944
None
1 . .592
48.515
2 000
40.462
44 1.50
8.213
10.613
".'17
28.635
2" . 59n
'5.042
11.836
27.782
98,183
12. .506
5., 500
16.0.57
17.427
13.485
28.098
None 18
None 19
None 20
None 2 1
945 2"
1.417 23
None 24
14.176 25
None 26
None 3«
2.650 37
None 4e
None 4"
None 4J
None 45
None 46
9.867
None 48
None 49
2.260 ,50
1,638 51
No
None 57
None 58
None 59
3,24Q 60
None 61
None «"
Totals for K20..
17.247.760 6.363.790 23.611.5502,298.496,.593I,8.55,S"«.379 8.383.080 7.783.790 1.653.436
Totals tor 1919 13,237,765 4.919,850 18,157,6151.820.194.3241.488.948.412 5.474.889 5.555.268 1.038.709
RECAPITULATION.
t^adian Compenif
British Companies.
ForeiRn Companies
7 992,418 7.783.362 15.775.780 1.502.434,183 1,112,748,411
25325,678 6.056.633 31.382.311 2.988.741.238 3,002.7.55,18'.
17 247 760 6.363.790 23.611.550 2.298,496,593 1,865.826,379
3.287.170 3.206,439
11,260,879 10.9.54,805
8.383.080 7.783.790
4.51.579 27. .508
1.626.383 165.136
1.653.436 48.. 531
Totals for 1920
Totals for 1919..
50.565.856 20.203.785 70.769,641 6,789.672,01 »5.971. 330.272
.931,129 21.245.114 3,731.398
40,031,474 16,412,242 55,443,716 6,423,569,961 4,923,024,381 16.778.37? M.679.3.55 2.645,871
241.175
518,6.33
COMMONWEALTH SECURITIES CORPORATION
A general stock and bond business will be conducted
by the Commonwealth Securities Corporation, which recently
obtained a Dominion charter with a capital of $750,000. The
he&d office is in Toronto and a branch has also been opened
in Montreal. W. L. Baker is manager, and A. J. Dove assist-
ant manager. The directors are as follows: —
C. Grant Anderson, president, president C. G. Anderson
Lumber Co., Ltd., Toronto; Alfred Butler, vice-president, con-
tractor, president Oshawa Development Co., Ltd., Toronto;
J. C. Lamothe, K.C., director, Messrs. Lamothe, Gadbois and
Nfjntel, barristers, Montreal, Quebec, president Greater
Montreal Land Investment Co., Ltd.; Dr. W. O. Fellman,
director, Chicago, 111.; Georges Mayrand, director, president
La Compagnie Internationale d'Immeubles, Limitee, dii-ectoi
Greater Montreal Land Investment Co., Ltd.; W. H. Irvine,
director, general agent for Central Ontario, Mutual Life of
Canr.da; W. L. Baker, director and general manager, director
Sumbling Machinery Co., Ltd., Toronto, formerly supervisor
Standard Bank of Canada.
NEW PACIFIC STEAMSHIP SERVICE
It is announced officially at the headquarters of the
Canadian Government Merchant Marine. Ltd., that the com-
pany is inaugurating immediately a Pacific coa^stal service.
The new service will be between Vancouver and Vancouver
Island points, and Seattle, San Francisco and Wilmington
in the United States. The ships' utilized will be the "Cana-
dian Rover," "Canadian Farmer," and "Canadian Beaver,"
each of which is of 3,040 deadweight tons, capacity.
April 15, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle^
of Canada
Address: Corner Church and Court Streets. Toronto, Ontario, Canada.
Telephone: Main 7404, Branch Exchangre connecting all departments.
Cable Address: "Montimes. Toronto."
Winnipeg Office: 1206 McArthur Building. Telephone Main 8409.
G. W. Goodall, Western Manager.
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Journal of Commerce.
The Monetary Times does not necessarily endorse the statements and
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PRINCIPAL CONTENTS
Editorial: page
Insurance Companies' Position Improved 9
Our "Good" Canadian Dollar 9
Rubber's Rise and Fall 10
Land Values and Building- Activity 10
Special Articles:
Records Established By Insurance in 1920 5
Farming: Opportunities May Be Curtailed 14
The Week in Parliament 14
Will Investigate Finances of Municipalities 18
Railway Obligations Involve New Brunswick 20
Section 88 of the Bank Act 22
Prince Edward Island Session 24
Dominion Finances in March 24
Power of Manager to Call Shareholders' Meeting 26
Weekly Departments:
News of Industrial Development in Canada 28
Insurance Licenses 30
New Incorporations 30
News of Municipal Finance 32
Government and Municipal Bontl Market 34
Corporation Securities Market 38
The Stock Markets 40
Corporation Finance ^. . . 42
Recent Fires 44
I.NSLRA.NCE CO.MPAMES' I'OSITION IMI'KOVKI)
OPERATIONS in the Canadian Held in 1920 materially
strengthened the position of insurance companies.
There were few which did not have some margin left after
claims, reserves and the expenses of doing business were
provided for. The life companies probably fared the best of
all. The phenomenal increase in the volume of new business
was the factor which contributed most to their success, as
the large incrt:ise in the amount of business in force re-
duces the overhead expenses. Mortality experience, though
not shown by the preliminary figures published, was very
favorable, helping the companies to recuperate the excessive
losses of the years 191.5 to 1919. A third factor which
operated favorably to the life companies was the investment
situation. Never before had they such an opportunity to
place their funds in long-term bonds at high yields, or in
mortgages at high interest rates. While weakness in security
prices and some difficulty in collecting on mortgages offset
these advantages in 1920, the real benefits will accrue in
years to come.
The fire insurance results were, on the whole, quite satis-
factory, the loss ratio being only slightly above that of 1919.
Among the various provinces there is a striking difference,
however; the experience in the west was very favorable, but
losses in the maritime provinces were so high as to cause
some uneasiness, and a movement towards higher rates or
better fire prevention measures. Critical business condi-
tions brought some fires of incendiary origin, but not sufl[ici-
ent to materially affect the loss ratio. Here, as in the life
field, depreciation in the value of the dollar during the past
few years made itself felt in a substantial volume of busi-
ness, enabling the higher expenses of conducting business to
be met without difficulty.
These results in the fire and life insurance fields were
pretty closely anticipated. The casualty lines show some
more striking changes. Many new forms have been intro-
duced into Canada during the past decade, the methods of
underwriting improved and new conveniences for the assured
provided. Automobile insurance has now firmly established
itself as the leader of the casualty lines, this being shown
by the volume of business now in force; the loss ratio in
this field wa-s just slightly over 50 per cent. Hail insurance
worked out very well also, with losses about 40 per cent, of
premiums. Sickness and sprinkler leakage were in fact the
only two lines to cause concern.
OUR "GOOD" CANADIAN DOLLAR
TF all tile statements made by responsible business men ant!
■'• financiers in explanation of the exchange situation were
fiue, it would indeed be an incomprehensible situation. If Cana-
dian dollars are as good as gold how can they be worth
only 87 cents in New York? That is just what is meant by
the statement that the Canadian dollar is as good as tne
.American dollar, for the latter may be exchanged for gold
at any time. Back of the issue of $290,000,000 of Canadian
government currency there is only $99,000,000 of gold, and
$137,000,000 of securities which are certainly not worth
their face value, leaving $.54,000,000 entirely uncovered. It
is obvious that the Canadian government cannot under these
circumstances make our curi-ency convertible into gold. Just
why Sir Henry Drayton should blame the depreciation on
Canadian housewives who buy .American goods is, however,
not easily understood. Sir Henry is enough of a financier to
know that it is inflation in the currency, and not a trade
balance, which is the main reason for depreciation.
D'Arcy Scott, who addressed the Toronto Canadian Club
on Monday, asserted that our dollars were as good as those
across the line. Mr. Scott surely knows, however, that more
can be purchased by one American dollar in the United
States than can be obtained for one Canadian dollar here.
THE MONETARY TIMES
Volume 66
Jas. Murdock, who spoke on the same occasion, proved him-
self a sounder student of finance when he asserted that the
Canadian dollar was worth only 87 cents in American cur-
rency, and that the same wag-es for railroad men in Canada
meant less for them than it did in the United States.
Some evidence which proves that deflation has not pro-
ceeded as far in Canada as it has in the United States has
just been publis-hed by The Wall Street Journal. The Cana-
dian statistics are taken from the report of the Canadian
department of labox, while those of the United States were
compiled by the Federal reserve board. The Journal shows
that wholesale prices in Canada declined 4 per cent, during
February, while a decline of 6 per cent, was reported in
the United States. The Journal continues,
"Index number for the United States reached the peak,
264, in May, 1920. Since that time it has declined to the
present figure, 1.54, a decline of 110. Index number for
Canada reached peak the same month it did in the United
States. Peak was 263, just one point below that reached in
this country. The decline in the Canadian index number has
been 64 as compared with 110 in the United States. In both
countries prices began to ease off gradually but a greatly
accelerated decline occurred the last three months o' 1920.
Fall has been less rapid the first two months of third year
and many bankers interpret this to mean that we are ap-
proaching a period of relative price stability."
LAND VALUES AND BUILDING ACTIVITY
RUBBER'S RISE AND FALL
GOODYEAR Tire and Rubber Co., of Akron, Ohio, is re-
ducing its capital stock from $100,000,000 to $1,000,000.
Goodyear Tire and Rubber Co. of Canada, Ltd., is reducing
its common stock issue from $5,332,000 to $533,200. These
reductions of 99 per cent, and 90 per cent, respectively, while
being out of proportion to the change in the assets of the
companies, indicate the extent to which industrial depres-
sion may require reorganization in company finance. Four
r.nd one-half million dollai-s of the Canadian company's pre-
ferred stock is in the hands of the public, and while their
interests have been as well protected as conditions permit,
yet they find that as a result of the reorganization $3,800,-
000 at least of prior preferred stock will come in ahead of
their securities.
The rubber industry was one of the many in Canada
which rode on the crest of the wave of ill-considered expan-
sion. Unwise extensions of the New Toronto plant of the
Goodyear company, made at the instance of the .American
controlling company, are responsible for its present difficul-
ties; the work was financed by the American company, but
now that it is practically in the hands of its creditors, the
latter are demanding better security from the Canadian
company. The Dunlop Tire and Rubber Goods Co-., Ltd., the
other large producer in the Canadian field, controlled by
powerful British interests, is also facing a difficult situation.
There are a few other concerns which have been established
for some time, such as the Ames-Holden Tire Co., and the
Canadian Consolidated Rubber Co., which made remarkable
progress during the war, but for whom the present outlook
is not too good.
These established businesses will no doubt survive, and
possibly their losses will be gradually recuperated. Among
the new industrial ventures of the past few years there
have, however, been several rubber companies which have
not the advantage of existing plant and business connections.
Among these are the Aero Cushion Inner Tire and Rubber
Co. of Wingham, Ont.; the Liberty Tire and Rubber Co.
of Canada, Ltd., Montreal; the Tiger Tire and Rubber Co.,
Ltd.. Toronto and Belleville; the K. and S. Tire and rubber
Goods, Ltd., Toronto; the Oak Tire and Rubber Co., Ltd.,
Toronto; the Lion Tire and Rubber Co., Ltd., Toronto; the
Rubber Co. of Canada, Ltd., Sherbrooke. The shares of
these companies have all been publicly offered for sale, and
many shareholders are scattered throughout Canada. They
will be fortunate if they ever realize upon their investment.
SO long as building operations are light the market for
urban land remains stagnant. True enough, the de-
preciation in the dollar applies to the price of property; in
the case of improved property, for instance, it is reflected by
a rise in values since 1915 amounting in some cases to 100
per cent. This influence has been offset, however, by the
absence of any appreciable demand for vacant land, and by
advancing tax rates which have put an end to speculative
purchases. The present year cannot be expected to bring a
revival in building operations, because costs, while slowly
falling, are still too high to permit of many buildings being
placed upon the market at current prices. Such a condition
is in sight, however, and will probably be reached in 1922.
Meanwhile the value of urban land is strengthening, after
six years of firm or falling prices. There is hope for owners
who have been paying heavy taxes during this period,
though it may be a long time before they realize that ap-
preciation in values anticipated when such speculative pur-
chases were made. ■
Tariffs cannot operate effectively in the sphere of fin-
ancial affairs. G. D. Finlayson, Dominion superintendent of
insurance, has in mind a tax of 15 per cent, on premiums
paid to insurance companies which are not licensed in Can-
ada. As such contracts are made outside of Canada it is
difficult to see how they can be taxed.
Federal income tax returns for individuals must be filed
not later than April 30, along with 25 per cent, of the tax.
Responsibility for making the return is placed upon the
citizen, notice not being given him. The department is try-
ing to shift the burden of collection as well as of payment
to the shoulders of the taxpayer.
That Belgium is again becoming a factor in world trade
is shown by a list of goods which she is in a position to ex-
port. The list, copies of which may be obtained from the
Belgian consul-general, Ottawa, includes some raw materials,
but is mainly composed of those manufactures, such as glass-
ware, for which Belgium was noted before the war.
From the age of 23 to 65 the average man is inde-
pendent; from 40 to 58 he has more than enough to live on
comfortably. During the former period he can, and during
the latter period he should, make provision for the future by
insurance and investments. The chart "Earning Capacity of
the Average Man" shown elsewhere in this issue is an in-
structive sermon on saving. '
INTRICACIES OF EXCHANGE
While at Oxford, Lord Curzon, then Mr. George Curzon,
achieved the reputation of being a most superior person.
When he was acting in the capacity of Under Secretary for
India the witlings of the House used to call him "Mr.
Curt'un" — so sharp, short and superior were his answers to
questions. Generally he was as cool as a cucumber. But
one day he was making a long and elaborate speech against
a measure urged by the Opposition) regarding that de-
pendency, as certain to result in a loss to the government of
many lakhs of rupees. Very emphatic and earnest was his
tone; convincing his eloquence.
"Consider," exclaimed he, with a superb, rhetorical
flourish, "not pounds, nor guineas, but lakhs of rupees."
"Exactly, but how much is a lakh of rupees?" shouted
a brainy heckler on the Opposition benches.
The House rocked with laughter when Mr. Curzon, be-
wildered, opened his mouth, stammered, grew red and finally
faltered : —
"T really don't know!"
This beautiful speech was evolved in vain, for he failed
in his appeal.
April 15, 1921
THE MONETARY TIMES
Bank of Hamilton
HEAD OFFICE
HAMILTON
Established 1872
Capital Authorized
Capital. Paid Up (January 31st, 1921)
Reserve Fund (January 31st, 1921)
$5,000,000.00
4.988,390.00
4,694,195.00
Directors
SIR JOHN HENDRIE. K.C.M.G., C.V.O., President
CYRUS A. BIRGE, Vice-President
HOWARD S. AMBROSE C. C. DALTON
ROBT. HOBSON W. E. PHIN
I. PITBLADO, K.C. W. P. RILEY
J. TURNBULL W. A. WOOD
ALAN V. YOI'NG
Branches
At Montreal, and throughout the Provinces of
Ontario, Manitoba, Saskatchewan, Alberta and
British Columbia.
Savings Department at all Offices.
Deposits of $1 and upwards received.
Advances made for Manufacturing and Farming
purposes.
Collections effected in all parts of Canada promptly
and cheaply.
Correspondence solicited
J. P. BELL - - General .Manager
World-Wide Banking
Do you engage in Foreign Trade?
Then this Bank can be of great
assistance to you.
Through the co-operation of corres-
pondent Banks in all foreign countries,
we are enabled to offer complete facil-
ities for the prompt and accurate
trans'action of business the world over.
Let us furnish you with particulars
regarding any foreign markets you
are interested in.
IMPEKiAL BANK
OF CANADA
216 BRANCHES IN CANADA
Ageots in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
File Your Income
Returns
ax
The income tax returns for 1920 of
all individuals resident in Canada
must be filed with the Dominion
Government on or before April
30, 1921. The Government this
year requires you to forward with
your return 2S% of the tax due,
UNION BANK OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55, OLD BROAD STREET. E.C.2
THE MONETARY TIMES
Volume 6(3
BANK BRANCH NOTES
The Dominion BanTv has opened a branch at Long
Bra.neh, Ont., and also at Rosseau, Ont.
The branches of the Union Bank at Birch Hills, Sask.,
Carmel, Sask., and Winnifred, Alta., have been closed.
The McCurdy Building at the corner of Mollis and Prince
Streets Halifax, has been purchased by the Bank of Nova
Scotia, which will proceed to transform the structure into
& modern banking building.
The Bank of Toronto has moved from the building at
the corner of George and Hunter Streets, Peterboro, to their
new offices on Water St.
The Royal Bank of Canada has formed a separate super-
visor's department for the province of Alberta, in Calgary,
under the charge of S. L. Cork.
O L Carey, formerly manager of High River, Alta.
branch of the Royal Bank, has assumed his new duties as
manager of Medicine Hat branch. F. G. Depew, formerly
manager of Saskatoon branch has been appointed manager
of Hamilton, East End branch.
During the month of March there were twenty-four
branches of Canadian banks opened. The following have
not yet bepn mentioned in The Moiictcry Times: Asbestos,
Que., Hochelaga; Bedford, Que., Hochelaga; Big Valley,
Alta.', Imperial; Coalmont, B.C., Union; Dufrost, Man., Hoch-
elaga; Giroux, Man., Hochelaga; Gogama, Ont., Hochelaga;
Lac-a^la-Croix, Que., Nationale; Lac Bouchette Sta., Que.,
Nationale; Mansonville, Que., Hochelaga; Montmagny, Que.,
Provinciale; Montreal, Que., Mont La Salle, Dandurant St.,
Hochelaga: Morin Heights, Que., Merchants; Oshawa, Ont.,
Oshawa. South, Standard; Porquis Junction, Ont., Imperial;
St. Elizabeth de Warwick, Que., Provinciale; St. Gabriel de
Stratford, Que., Provinciale; St. Roch sur Richielieu, Que.,
Hochelaga.
The following branches were closed during the month:
Arrowhead, B.C., Imperial; Arrowhead, B.C., Molsons; Clair,
Sask., Royal; Edgely, Sask., Imperial; Hatchley, Ont., Roy&l;
Madawaska, Ont., Sterling; Marquis, Sask., Royal; Phelpston,
Ont., Sterling; Queensville, Ont., Toronto; Revenue, Sask.,
Royal; Swan River, Alta., Royal.
The branches opened were distributed among the banks
as follows: Hochelaga, 8; Imperial, 3; Provinciale, 3; Na-
tionale, 2; Royal, 2; Commerce, 2; Union, 1; Merchants, 1;
Standard, 1; Dominion, 1.
PERSONAL NOTES
J. C. Clark, formerly of the Union Bank of Canada,
Winnipeg, and who left there about a year ago to become
manager of the accountant's department at Vancouver, B.C.,
has resigned and joined the service of the British-Ameri-
can Bond Corporation.
Capt. Walter R. Clarke, M.C, who has been connected
with the Eraser companies. Limited, for some time at Ed-
munston, N.B., has been appointed superintendent of the
mill at Magaguadavic. Capt. Clarke was at one time the
publicity commissioner of the Fredericton Board o' Trade.
T. Palmer Howard, one of the directors of the Howard
Smith Paper Mills, Limited, has been appointed comptroller
of the company. The office is a new one, its creation having
been made necessary by reason of the expansion in the scope
and business of the company during the past few years.
Mr. Howard is general manager of the Phoenix Bridge Com-
pany. He is also past president of the Montreal branch of
the Canadian Manufacturers' Association.
Charles Riordon, formerly president of the Riordon
Company, Limited, has been made honorary president of the
company and Carl Riordon, formerly vice-president, has been
elected president. A new member of the board in the per-
son of Frank P. Jones, general manager of the Canada
Cement Company, will succeed Carl Riordon as vice-presi-
dent, and it is >inderstood, will take an active part in the ad-
. ministration of the company. Also three other new members
have been added to the Riordon directorate : George M.
McKee, general manager of the Donnaconna Paper Co.,
Donnaconna, Que. ; F. T. Bronson, of the Bronson Company,
Ottawa, and F. N. Southam, of the Southam Press, Mont-
real.
UNION BANK'S MAIN VANCOUVER OFFICE
THE Union Bank's new Vancouver
office at Hastings and Seymour
Streets, recently opened to the pub-
lic, was erected at a cost of about
$400,000. Designed by Somervell and
Putnam, architects, it provides every
modern facility for banking. Pass-
ing through the bronze doors at the
main bank entrance on Hastings
Street, one enters a vestibule exe-
cuted in bronze and marble. This
opens to the public space of the main
banking room, which is floored with
Verde-antique and Napoleon grey
ma.rble floor tiles. Fronting on this
space is a crescent-shaped counter,
one hundred feet long, while flanking
the entrance on the right is located
the foreign exchange department, and
on the left the savings bank depart-
ment, making a total of over 160
lineal feet of counter. At the ex-
treme right is located the manager's
office, and at the extreme left, a
ladies' i-oom is provided, fitted with
every convenience for the lady pat-
ions. The vaults are in the basement,
and are accessible to the banking room
by a hydraulic lift.
April 15, 1921
THE MONETARY TIMES
i!iiiuniiniiiiiiiiiiiiiiiiiiiinuriiiiiiiiiiiiiiiiiiimiiiniiiiiiiiiijiiiniiiiiniiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin
I The Sterling Bank \
I OF CANADA |
PmHiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiuiiiuiiiiiiiiiiiiiiiiiiiiiiii{|imiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiii;i!a
You talk over matters of health with your physician
— legal problems with your lawyer. Do you seek
the help of your Banker in financial matters? Every
Sterling Bank officer is personally ready to assist
you in solving your financial problems — at any time.
Head Office
KING AND BAY STREETS, TORONTO
The National Bank of Scotland
Limited
Incorporated by Royal Charter and Act of Parliament. Established IS'^
Capital Subscribed ;{^5, 000,000 825,000,000
Paid up 1,100.000 5,500,000
Uncalled 3,900,000 19,500,000
Reserve Fund 1.000.000 , 5,000,000
Head Office - EDINBURGH -
WILLIAM CARNKGIE Ocneral Manager. CIIDKCK A. HLNTKl-i. Sec.
LONDON OFFICE-37 NICHOLAS LANE, LOMBARD ST.. EC. 4
T. C. RIDDELL, DUGALtJ S.MITH.
Manager Assistant ManaKer
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled irv London, are retired
on terms which will be furnished on application.
A Trust Company^ s
Charges
CONTRARY to popular belief, a trust company re-
ceives no more remuneration for its services than
does a private executor or trustee. The amount
is based on a percentage of the funds handled and is
fixed by the Courts when the accounts are audited.
Consider the following advantages which a trust com-
pany offers you :
It is financially responsible.
It is always available.
Its officers have wide experience in the manage-
ment of estates and trusts.
It maintains an up-to-date accounting system
ensuring accuracy.
It furnishes statements to beneficiaries at regular
intervals.
It keeps all papers and documents in Safety
Deposit Vaults.
These and many other advantages can be secured at no
greater cos! than private trusteeship. You can readily
see. therefore, that trust company service is the more
efficient and less expensive for you in the end.
We iolicit your business.
Inicrvieviers and eorresponjents invited.
THE
TorothtoGetheralTrusts
CORPORATIQ^
Head Office: Corner Bay and Melinda Sis. - Toronto
THE STANDARD BANK OF CANADA
Quarterly Dividend Notice No. 122
A dividend at the rate of Three and One Half per cenl.
(S'j) for the three months ending 30th April, 1921. has
been declared payable on the 2nd of May, 1921. to
Shareholders of record as at the 18th of .April. 1921.
By Order of the Board,
C. H. EASSON,
General Manager
Toronto, March 23rd. 1921.
ESTABUSHED 1879
Alloway & Champion
Bankers and Brokers
Member. o( Wmnipeg Slock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
Income Tax Returns
Our experience in the prepa-
ration of Income Tax Returns
will relieve you of worry in
the interpretation of the In-
come Tax Act as applicable
to your revenue. Our fee is
moderate for the services ren-
dered.
THE BANKERS'
TKVSr GOMBWlf
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Bnilding in each city
THE MONETAEY TIMES
THE WEEK IN PARLIAMENT
Commons Discusses Estimates and Grand Trunk Proceed-
ings— Railway Measures I'rogress in Both Houses
(Special to The Monetary Times.)
Ottawa, April 14, 1921.
Thursday, April 7
In the House of Commons: — (a) Resolution of Minister
of Finance asking for $71, 19!), 703. 70, one-sixth of main esti-
mates for 1921-22, introduced, but Fielding objection to dis-
cussion then sustained.
In the Senate: — (a) Third reading bill incorporating Can-
adian Bar Association; (b) Discussion Canadian Railway
situation, especially Grand Trunk arbitration proceedings.
Friday, April 8
In the House of Commons: — (a) Debate on Premier's
motion to appoint special railway committee and Liberal
Opposition leader's amendment for wider open inquiry, the
latter being defeated by a majority of 17, and main motion
accepted by majority of 38 after amendment according to
suggestion of Progressive leader, Hon. T. A. Crearer; (b)
Third readings of following bills: one respecting Canadian
Pacific Railway, one incorporating Canadian Transit Co., and
one respecting James MacLaren Co.
In Senate: — (a) Third readings of following bills: one
asking extension of time • for construction operations of
Montreal, Ottawa and Georgian Bay Canal Co., one respecting
Oshawa Railway Co., one respecting Quebec, Montreal and
Southern Railway Co., one respecting the Thousand Islands
Railway Co., one respecting Kettle Valley Railway Co., one
respecting Manitoba and North Western Railway Co. of
Canada, one respecting Quebec Central Railway Co., one re-
specting Esse.x Terminal Railway Co., and one respecting
Ottawa Northern and Western Railway Co.; and (b) Second
reading of Dominion Express Co. bill permitting company to
increase capital stock from two to five million dollars, and to
convey goods outside Canada as well as in it.
Monday, April 11
In the House of Commons: — (a) Appointment of select
standing committee on railways and shipping; (b) Debate on
Campbell resolution asking for extension of Hudson Bay
Railway as soon as financial resources permit and motion
withdrawn; (c) Hocken resolution asking Government assist-
ance for house-building withdrawn; (d) Estimates for Marine
Department, and debate lasting all day and night and the
next day on the estimate for government shipbuilding pro-
gram of eight million dollars, followed by decision to apply
closure; (e) Debate resumed on motion for interim supply,
and decision to apply closure.
Tuesday, April 12
In the Senate: — (a) First readings of following bills:
one respecting Canadian Pacific Railway, one to incorporate
Canadian Transit Co.
Wednesday, April 13
In the House of Commons: — (a) Fielding motion on going
into supply asking that advantage be taken of the Reci-
procity offer still standing in the United States tariff, and
debate thereon; (b) First reading bill to extend time for
construction of portion of Quebec and St. John Railway be-
tween Centreville and Andover, N.B.; (c) Second reading
bill to amend and consolidate law relating to copyright.
In Senate: — (a) Senator Robertson, Minister of Labor,
denied statement of Chief Commissioner of Board of Rail-
way Commissioners, that McAdoo Award had been forced on
Canadian Railway companies by international organizers
from the United States.
Determined opposition by the Liberal minority in the
House of Commons to the voting of interim supply of one-
sixth of the main estimates, amounting to nearly eighty
million dollars, and to the spending of another eight million
dollars to complete the government shipbuilding program,
featured the last parliamentary week. The debating de-
generated into a test of endurance, and the House sat on
these few items from three o'clock Monday afternoon until
after midnight Tuesday without a break except the two
hours for dinner at night provided by law. The government
then applied the closure. The Hon. W. S. Fielding brought
1911 politics right up to date on Wednesday by suggesting
that the government should take advantage of the reciprocal
clause in the United States tariff in view of the impending
passing of the Fordney Tariff Bill. He claimed that other-
wise Canada would suffer severe losses in trade by the new
bill. There is as yet no definite intimation as to when the
budget will come down, but it will not be before May.
FARMING OPERATIONS MAY BE CURTAILED
Westerners Not Pleased With Present Conditions — Building
and Other Activity in Brandon and Regina
(Staff' Correspondence.)
Brr,.ndon, April 14, 1921.
SEEDING has not commenced yet in the west, except in
isolated instances. In the Brandon district good
weather was experienced this week, and the ground is dry-
ing rapidly. In a week or ten days, seeding should be in
full swing. Conditions in Brandon are quite satisfactory,
and a good deal of building activity is likely to take pla>ce
this year. The Imperial Oil will spend a quarter of a million
dollars on buildings and development. Hospital extensions,
which are badly needed, and which if gone ahead with, will
cost four hundred thousand. Brandon College have a build-
ing program of approximately one hundred thousand; also
new winter fair building will be erected, costing one hundred
and fifty thousand. This, in addition to a housing program
of probably one hundred thousand, will make Brandon quite
active this summer.
Business throughout Manitoba continues quiet, withj
collections showing a. slight improvement. One loan man-
ager of a representative company, who have dealings over
a wide area, termed them very satisfactory. In some
quarters, the attitude of the banks in not giving greater
financial assistance to the faa-mers, is being severely criti-
cized, and actual development and acreage seeded is likely
to be considerably curtailed on this account.
In the Regina district improving weather conditions give
confidence to the farmer that seedings will be well away to
» good stai-t in ten days on the higher lands. Given a con-
tinuance of warm sunshine seeding may be possible even
earlier. It is believed that there is little frost in the land
after so mild a winter and that the recent inclement weather
has been all to the good by increasing the moisture content.
By the end of April seeding should be general. Business in
Regina is showing improvement, and collections are reported
better.
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways for the first period in
April: —
Canadian Pacific Railway.
1921. 1920. Inc. or dec.
April 7 $3,179,000 $3,617,000 — $ 438,000
Canadian National Railway.
April 7 $2,103,435 $1,834,118 + $ 269,317
Grand Trunk Railway.
April 7 $1,802,346 $1,982,648 — $ 180,302
April 15, 1921
THE MONETARY TIMES
15
Bank of New Zealand
ESTABLISHED IN 136 1
Bankers to the New Zealand Government
CAPITAL
Paid-Up Capital ($13,528,811) and Reiene Fond
($12,166,250) $25,695,061
Updivided Profits 713.039
Aggregate Asseti at 3Isl March, 1920 257,500,944
Head Office:
WELLINGTON
NEW ZEALAND
H. BUCKLETON
General Manager
nv^-'
f>'
THE BANK OF NEW ZEALAND has branches at
Auckland. VVellinKton. Christchurch. Dunedin. and 203 other
places in New Zealand; also at Melbourne and Sydney
(Australia). Suva and Levuka (Fiji), Apia (Samoa), and
London.
The Bank has facilities for transacting every description
of Banking Business. It invites the establishment of Wool
and other Produce Credits, either in sterling or dollars, with
any of its Australasian Branches.
LONDON OFFICE: 1 Queen Victoria Street, Mansion Houte, E.G. 4
CHIEF CANADIAN AGENTS :
Canadian Bank oi Commerce Bank oi Montreal
fHomeBankofCanadA'
LETTERS OF CREDIT ISSUED
Letters of Credit or Drafts issued to over 1,500 principal
points in the United Kingdom and the world-wide
British Empire and business centres of Europe and
Asia. The service is most complete and of unexcelled
efficiency.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s-i.?
THE
Weyburn Security Bank
Chartered by Act oi the Dominion Parliament
head office. weyburn, saskatchewan
Branches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midale
GrifEn. Colgate, Panginan, Radville, Assiniboia, Benson,
Verwood, Readlyn. Tribune, Expanse, Mossbank, Vantage,
Goodwater, Darmody. Stoughton, Osage, Creelman. Lew-
van, Froude and Ardill.
A GENERAL BANKING BUSINESS TRANSACTED
H. O. FOWELL, General Manager
TH€ M€RCHANT5 BANK
Head Office : Montreal. OF CANADA Established 1 864.
Capital Paid-up $10,029,622 Reserve Funds and Undivided Profits, $9,475,585
Total Deposits (3Ist January, 1921) $152,211,354
Total Assets (31sl January, 1921)
$186,528,254
Board of Directors :
President
SIR H. MONTAGU ALLAN
SiF F. Orr Ork-Levvis, Bart.
Hon. C. C. Hallantyne
Farquhar Robertson
Geo. L. Cains
Alfred B. Evans
Thomas Ahearn
Lt.-Col. J. R. MoooiE
Vice-President
Hon. Lorne C. Webster
E. W. Kneeland
Gordon M. McGregor
F. HOWARD WILSON
John Baillie
Norman J. Dawes
Ross H. McMaster
General Manager - - - DC. Macarow
Supt. of Branches and Chief Inspector ■ T. E. Merrett
General Supervisor - - - W. A. Meldrum
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
1 heir banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 38 Wall Street : W. M. Ramsay and C. J Crookall, Agents
London, England, Office, 53 Cornhiil : J. B. Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
THE MONETARY TIMES
Volume 66
Date.
^
6
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a
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<
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Apr. 1 .
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34
EXCHANGE QUOTATIONS
Quotations of exchange on European countries and the
United States as at April 14, 1921, with comparisons, are
given below. The Canadian figures are supplied by the
Imperial Bank of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
Can., Apr. 7. Can., Apr. 14. N.Y., Apr. 14.
London, cheque . . 438.25 441.50 390.00
Frsnce 7.97 8.01 7.12
Germany 1.82 1.83 1.58
Belgium 8.30 8.38 7.40
United States ... llHifiP- 12lVio p.
DOMINION BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended April 8, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
10
BUSINESS COLLECTIONS REPORTED GOOD
Dun's Biilletiti of April 16 will say regarding trade con-
ditions in the Montreal district: "Country roads are getting
more settled, and collections as a whole may be classified as
good. The 10th was a heavy day for payments in the dry
goods trade, and comparatively few defaults are reported.
Dry goods travellers now cari-ying full lines of fall samples
find buyers a little shy in placing orders for such goods,
but a good business is being done in a sorting way, the
volume of mail orders being especially noticeable. City re-
tailers report a fair distribution, but a good many shoppers
appear to be deferring purchases in certain lines, anticipat-
ing lower prices. Further gradual improvement is noted in
the boot and shoe trade. Orders are coming in more freely,
■ and some of the larger factories, though not working at all
to capacity, are turning out 2,500 pairs a day. In leather
prices there is nothing new. The iron market still rules
dull, but in general hardware there is a moderate distribu-
tion, principally countrywards. Structural material and
lumber still move slowly."
Toronto district conditions are outlined as follows :
"Once again the salesman comes into his own as merchants
realize the existence of competition and the necessity of an
energetic capable selling force to market their merchandise.
Wholesale firms do a steady business which they agree could
be added to considerably without danger of strain upon
any department. Trade is very erratic, due in part to the
confused stp.te of mind of the average retailer regarding
the stability of quotations. Hand to mouth purchasing while
commendable as a precautionary measure may eventually
become serious for those neglecting to place for later on as
mills are not providing stock to be kept available for tardy
purchasers, a proceeding usual in other years. The unem-
ployed are being gradually absorbed and once this large
number commence to earn, stimulation in many lines will be
assured. Cotton price lists are expected about the first of
May but the issuance may be defen-ed, this season, until a
later date. An improvement is noted again this week in
the sale of boots and shoes, and factories in Western Ontario
keep fairly well engaged. Millinery wholesalers fail to ap-
preciate alternating cold or fine days, although the season
has been exceptionally good up to now. Travellers selling
novelties, celluloid goods, etc., pick up some fair orders."
EMPLOYMENT CONDITIONS IN CANADA
Dominion headquarters of the Employment Sei-vice of
Canada, Depai-tment of Labor, reports that during the week
ending March 12,5,358 firms made employment returns show-
ing that they had contracted their payrolls by 4,167 persons
since the preceding week, a decline of less than 1 per cent.
Taking the volume of employment reported for the week of
January 17, 1920, as a base equal to 100, employment for the
week of March 12, 1921, stands at slightly over 87, as com-
pai-ed with a little more than 101, indicated by the finns
making returns for the corresponding week of last year.
This would show, therefore, that the employment afforded by
the firms reporting for the week under review was about 14
points lower than during the week ending March 13, 1920.
New Brunswick was the only province that i-egistered a gain
over the preceding week, while employment in this and every
other province was considerably below the level of the cor-
responding week in 1920.
EARNING CAPACITY OF THE AVERAGE MAN
15 20 25 30 35 40 45 50 55 60 65 7t) 75
(.4 cJiari issued by the National City Co.)
WEEKLY BANK CLEARINGS
The following are the Bank Clearings for the week
ended April 14, 1921, compared with the corresponding week
last year: —
Week ended Week ended
Apr. 14, '21. Apr. 15, '20. Changes.
Montreal $105,721,103 $140,051,521 — $34,-330,418
Toronto 107,476,351 117,991,244 — 10,514,893
Winnipeg 49,275,853 46,371,686 + 2,904,167
Vancouver 13,641,707 18,298,086 — 4,656,379
Ottawa 7,743,461 9,868,244 — 2,124,783
Calgary 6,271,389 8,894,906 — 2,623,517
Hamilton 6,117,508 8,254,767 — 2,137,259
Quebec 6,408,638 8,909,432 — 2,500,794
Edmonton 4,635,943 7,747,807 — 3,111,864
Halifax 5,503,853 5,043,493 + 460,360
London 3,357,749 3,814,508 — 456,759
Regina 3,510,845 4,856,934 — 1,346,089
St. John 2,734,001 3,772,397 — 1,038,-396
Victoria 2,760,929 3,238,302 — 477,373
Sa-skatoon 1,776,046 2,593,895 — 817,849
Moose Jaw 1,254,316 1,884,492 — 630,176
Brantford 1,178,720 1,507,512 — 328,792
Brandon 685,734 685,012 + 722
Fort William 704,582 841,969 — 137,387
Lethbridge 586.607 968,357 — 381,750
Medicine Hat . . . 382,589
New Westminster 513,888 849,387 — 335,499
Peterboro 962,968 1,495,168 — 532,200
Sherbrooke 1,167,821 1,063,112 + 104,709
Kitchener 1,065,065 1,225,462 — 160,397
Windsor 3,120,116 3,275,081 — 154,965
Prince .Albert . . . 361,832 539,396 — 177,564
Totals ...... $338,537,025 $404,042,170 — $65,505,145
Moncton 978,137
April 15, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 18171
PAID UP CAPITAL -
RESERVE FUND - "" -
RESERVE LIABILITY OF PROPRIETORS
AGGREGATE ASSETS 30th SEPT., 1920
$ 24,635,500.00
16,750,000.00
24,655,000.00
$ 66,061,000.00
$362,338,975.00
■ JOHN RUSSELL FRENCH K.U E , General Manager
n States, New Zealand, Fiji, Papua (New Guinea), and London, The Banit trar
ian Banking Business. Wool and other Produce Credits arranged.
very description
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2.
BANK OF .MONTREAL, ROYAL BANK OF CANADA.
BUSINESS FOUNDED 1795
INCORPORATED IN CANADA 1897
AMERICAN BANK NOTE COMPANY
ENGRAVERS AND PRINTERS
BANKNOTES, BON DS. MUNICIPAL DEBENTURES, STOCK
CERTIFICATES, CHEQUES AND OTHER MONETARY DOCUMENTS
lecial Safeguards Against Counterleiting Work Acceptable on all Stock Exchanges
Head Office and Works : OTTAWA 224 Wellington St.
BRANCH OFFICES
Make Your Money Work to Earn
More Money for You
ings Account instead of less.
>ur wages, would you ? Then
1 your Savings Account?
Make it earn 4"i per annum in a Sa
You wouldn't refuse an increase in ;
why refuse an increase in the interest (
It's as simple as A BC.
The L'nion Trust Company will pay you interest at 4% per annum,
compounded regularly. Come and open your account here. If you
cannot conveniently call, open your account by mail. Deposits
promptly acknowledged and withdrawals by mail accurately and
safely despatched.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS
Winnfpeg TORONTO London. Eng.
The most important document a person of large or small
means is called on to prepare is his
LAST WILL AND TEST.\MENT
It means the happiness and welfare of those most dear.
Ask for Booklet : " Make Your Will."
CAPITAL, ISSUED AND SUBSCRIBED
PAID-UP CAPITAL AND RESERVE
. SI. b7l, 700.00
. 1,172.00000
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE: WINNIPEG, CAN.
BRANCHES:
V
A Trip to
VANCOUVER
(British Columbia)
-\
Offers more interesting attractions than any other
vacation trip that can be suggested
Every reader expects to visit the Pacific Coast some day
hopes to see Vancouver — Canada's Pacific outlet —
the city about which so much is being said and viritten.
WHY NOT THIS SUMMER ? YOU CAN MAKE
THE TRIP IN A THREE WEEKS' VACATION
Ahhough all the time you canspare can be spent with
profit and without exhausting the thousand and one
beauty spots about Vancouver.
in immediate touch
Just think - English Bay and its fam-
ous bathing beaches — a dip in the
Pacific-the famous Stanley Park-
1.000 acres of magnificent Forest —
Both reached by city carlines. The
ereal Capilano Canyon — lessthan an
nour's trip - Day and half -day trips —
by motor on land bv water on Howe
Sound and Burrard Inlet-Hundreds
of mile
t be
*\
SEND TO-DAY FOR OUR
ILLUSTRATED FOLDER.
Address Vancouver Publicity Bur-
eau (J. R. Davison. Mgr.). Suite 50
330SeymourSt.. Vancouver. B.C. '
VISIT
THIS
Summer
/
18
THE JIONETARY TIMES
Volume 66
Will Investigate Finances of Municipalities
Subject Will be Fully Studied by British Columbia With View to
Settlement at Next Session — Late Session Produced Little New
Legislation — I^rovince Must Still Borrow for Pacific Great Eastern
SEVENTY bills, out of a total of 85 introduced, were
passed by the British Columbia legislative session which
came to a close on April 2. Premier John Oliver an-
nounced that the next session will likely be held in October
or November to solve municipal finance problems. In pro-
roguing the House, the Lieutenant-Governor said he con-
sidered that the Moderation Liquor Act met fairly the wishes
of the electorate as expressed in last year's referendum.
The Supply Bill, covering all sums voted during the last
week for carrying on government for the ensuing year,
amounted to $20,626,000, the largest in the province's history.
Outside of the Liquor Act, there was little legislation of
note. The government is, however, authorized to raise $4,-
000,000 for the Pacific Great Eastern Railway, by the sale
of 6 per cent, bonds or of treasury notes. The rates of in-
terest authorized by the Loan Acts of 1916, 1917, 1919, and
by the Department of Industries Act of 1919, are raised to
6 per cent.
Authority to lease for fishing purposes the public wharf
at Prince Rupert, which was constructed by the department
of public works, but which is not now required by it, is given
to the government. A "Forest Act Amendment Act" intro-
duces some important changes in the law regarding forests
and the cutting of timber.
Municipal Finances
While the question of municipal finance is to be fully
considered later on this year, some changes were made at
the session just closed. The "Richmond Municipality Bridge
Debentures Cancellation Act" releases Richmond Township
from the payment of the remaining 21 of the 40 debentures
for $1,400 each, given the province in 1901 as security for
the cost of maintaining the bridge at Eburne. Port
Coquitlam, finding itself unable to meet treasury certificates
to the amount of $92,000, maturing in 1921, 1924 and 192.5,
because of the fact that $50,735 in taxes was outstanding on
December 31, 1920, and lands representing $200,000 in ar-
rears of taxes had been acquired at tax sales, applied to the
government for relief. It is now authorized to borrow $100,-
000 at 7 per cent, for 20 years to meet these obligations.
The legislature passed an Act to validate the Burnaby
Conservation of Assets by-law which was passed by the
council of the municipality, in 1920. The by-law embodies
principles in municipal finance which are unique in British
Columbia, and possibly in the Dominion. The outstanding
feature is the ear marking of certain assets, consisting of
lands which reverted to the municipality at tax sales, for
the purpose of the liquidation of the bonded debt of the
municipality at a date earlier than the maturity of the vari-
ous debenture issues. It is proposed to accomplish this by
the creation of a fund from the proceeds of the sale of the
lands in question, and from such fund to purchase outstand-
ing debentures of the municipality which may be offered from
time to time, or in the event of debentures not being avail-
able for purchase, to deposit the monies accruing from sales
of lands, to the credit of the several sinking funds, in addi-
tion to the annual levy specified in the by-laws under which
the debenture issues were authorized. The sinking funds of
this corporation have not been allowed to fall into arrears, and
they have to-day, the full .amounts required, standing at their
credit.
The "Unemployment^ Relief Loans Validation Act" con-
firms and validates all loans made to any municipality, to
the amount of $250,000, authorized by order-in-council, for
relieving unemployment. Moreover, further advances may
be made to any municipality to bring the total so borrowed
by it up to $250,000. These loans are to be repaid to the
province in five equal annual instalments with interest at 6
per cent. Acts to amend the Public Schools Act and the
Water Act, 1914, also affect municipalities and their finances.
Will Make Investigation
The government intends to revise the whole taxation
system of British Columbia, and to make the proposed
changes effective at the next session of the legislature,
Premier Oliver informed a delegation representing the
Union of British Columbia Municipalities on March 26. The
government will continue its plan to allow the municipalities
half of all liquor profits, but realizes that this revenue
alone is not suflicient to cover the needs of the municipali-
ties. An investigation into the present financial system as
it affects the province and the municipalities will be made.
This investigation will cover the existing relationship be-
tween muncipal councils and schools. A $5 tax on all
adults half-yearly by municipalities was suggested by the
government to aid the municipalities in the present financial
crisis. The delegation asked for a greater share of taxes,
and made some other recommendations along the line of a
report recently prepared for Vancouver by Dr. H. L.
Brittain.
Again on April 2 the question came up, in a discussion
about additional taxing powers for Vancouver, and the
premier pointed out that while the municipalities un-
doubtedly needed assistance, the municipal committee of
the House had not been able to make one practical sug-
gestion this year. A full inquiry should be made, there-
fore, and as 80 per cent, of the population resided in the
municipalities, the province could not be expected to shift
their burden, but might have it more equitably distributed.
Amendments were also made to the charters of Van-
couver and Victoria, and the sessional indemnities of mem-
bers of the house were increased.
Pacific Great Eastern
By the end of March next year, when the line is ex-
pected to be in operation to Prince George, the province
will have sunk no less than forty millions in the Pacific
Great Eastern project, stated Premier Oliver, when ex-
plaining the necessity for the government bringing down
another bill to permit borrowing an additional four millions
for Pacific Great Eastern purposes for the coming year. Last
year, the premier explained, four millions were borrowed
for the purposes of the railway, and, it was then expected,
that would prove sufficient to complete the line to Prince
George. But in view of an increase of thirty per cent, in
cost of construction, coupled with a sixty per cent, advance
in cost of materials, together with the great amount of
work which had to be done on the old grade, and the neces-
sity for providing for deficits in operation, as well as in-
creased cost of maintenance and the purchase of needed
additional equipment, probably one-half of the four millions
raised last year had to be diverted to purposes other than
strictly new construction.
Numerous changes on which action was not taken were
also urged upon the government. A rural credit system
similar to that of Manitoba, where the government finance
loans out of deposits of the people in its own savings banks,
was urged upon the Agricultural Committee of the legis-
lature on March 1 by the Board of Farmers' Institutes.
Last year 380,000 acres of timber, or 236,000,000 feet,
valued at $299,000, was destroyed by fire, according to the
report tabled by the Minister of Lands in the legislature
on March 8. Damage to young growth and range is placed
at $186,000, as the total damage to forests amounts to
$485,000, as compared with $393,000 in 1919.
April 15, 1921
THE MONETARY TIMES
19
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
The Security
Head Office
Trust
Company,
Calgary,
Limited
Alberta
Liquidator, Trustee
Administrator, Exe
, Receiver
color.
Stock and Bon
General Financ
1 Brokers,
al Agents.
W. M. CONNACHEH
Prcs. and M
nagintj Director
INCREASED PROTECTION FOR DEPOSITORS
The addition of SJSO.OOO to our Reserve Fund out of
last year-s earnings increased that Fund to $6,000,000 which
is equal to the Paid-up Capital.
Our depositors, therefore, have the protection of Twelve
Million Dollars of Shaieholders' capital.
Open your account with the institution that has been
doing business in Toronto for more than sixty-five years and
has safe-guarded and helped to increase the savings of many
thousands of thrifty Toronto people, whose confidence it has
had for this long period.
You will receive interest at
THREE AND ONE-HALF PER CENT.
per annum, compounded half-yearly— whether your balance
be large or small.
Full privileges of cheque withdrawals,
Canada Permanent Mortgage Corporation
Eslablisbed IweUe years before Canada was born
14-18 TOROINTO STREET - - TORONTO
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
.Masonic Temple Building. London, Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PLUDO.M. K C . President .\ATHANIEL .MILLS. .Manager
The Hamilton Provident and Loan Corporation
Head Office. King Street. Hamilton. Ont.
Capital Paid-up. $1,200,000. Rcccrvc Fund nnd Surplus
Profita. $1,315,587.70. Total Asscta, $4,800,104.82.
TRUSTEES AND E.XECUTORS are aulhorized by Law to invest Trust
Funds in the DEBE.NTURES and SAVINGS DtPAKTMHNT of this
Corporation.
GEORGE HOPE. President 1). M. CAMERON. General .Manager
Ontario Loan
& Debenture Co.
LONDON lNCORPOR.\TED 1870 Canada
C-\riT.\L And Reserve Frxn $-1,000, 000
SHORT TKRM (1 TO 5 YKARS)
DEBENTURES
YIELD INVESTORS
Si
5^1
JOHN ,McCLARV.
A. .M. S.MART. .Manager
QVER 200 Corporations,
^'^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office. No. 13 Toronto Street
Capital Account. «i;2l.5.-,«.0« Reserve Fund. !j<:iH),U<l().IHI
Total Assets. !il:«.l«S,.'l(M>.(p<»
President. WELLl.VGTON FRANCIS, Esi|., K C.
Vice-President. HERBERT LA.NGLOIS. Esq.
Debentures issued to pay >'.■,':.. a Legal Investment for Trust Funds.
Deposits received at 4% interest, withdrawable by cheque.
Loans made on improved Real Estate on favorable terms.
WALTER GILLESPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inqairiea Incited
General Manager - Lieut. -Col. G. H. DORRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office - - Swift Current, Saskatchewan
JOHN R LITTLE. Managing Director
THE MONETARY TIMES
Volume 66
RAILWAY OBLIGATIONS INVOLVE NEW BRUNSWICK
Finances of Valley Railway Discussed in Legislature — Fire
Prevention Act Considered— Very Little New Legislation
AT the New Brunswick elections held last October, the
Liberal government secured only 23 out of the 48
seats, the Conservatives and Farmers securing 14 and 11
respectively. In the session which commenced on March
17, however, the Liberals have thus far been able to carry
on' their business, as the Farmers vote with them on most
measures. The Lieutenant-Governor's speech from the throne,
dealt with the necessity for preserving provincial rights,
hydro development at Musquash; returns from Crown tim-
ber lands, said to be the largest in history owing to increased
stumpage rates; encouragement for flax industry, the Valley
Railway deficit, and other points.
It was also stated that a measure would be introduced
to fund the amounts already advanced to meet the interest
upon the bonds issued in connection with the construction of
the Valley Railway. The announcement followed a state-
ment of conditions as they exist ih relation to the Valley
Railway in which it was frankly stated that "the estimated
receipts have f?llen far short of the requirements to pay
the interest" and that "the province has, as a result of this,
been called upon to pay large sums in interest for which no
provision has been made." The goveniment, it was also said,
would ask the legislature to consider how best to make the
necessary provision for meeting the interest charges from
the Valley Railway in the future. Otherwise the program
which the government offered to the legislature through the
speech from the throne was unpretentious and exclusive al-
most entirely of contentious matters.
The Valley Railway
In the debate on the speech, A. Chase Fawcett urged
less "education" of the farmers, but more practical assist-
ance in the form of rural ci-edits and telephone extensio.is.
J. B. M. Baxter, leader of the opposition, advccated that the
Valley Railroad be taken over by the Dominion government.
Referring to the financial position of the province, Mr. Bax-
ter said that on October .31, 1917, after being in power
several months, the total indebtedness of the province,
omitting sinkinv fund', was $16,797,050. In that amount
some expenditures of the present government were included.
On October 31 last, exclusive of sinking funds and Housing
Act expenditure, the total indebtedness was $22,063,694, an
increase of $5,266,643 in three years. The actual increase
had been $6,416,522. For the past year the estimated
revenue had been $2,829,463, and the estimated expenditure
$2,497,712. making an estimated surplus of $331,771. The
Valley Railway took $252,351, leaving about $79,000, which
would have been a surplus clear of everything.
Premier W. E. Foster, on March 22, pointeJ out that
the net cost of the Valley Railway was $6,608,068,' after a
saving of $445,591 had been made by refunding in London.
Last session he had presented before the House the matter
of obtaining runn'ng rights over the C.P.R., between West-
field and St. John, pointing out that the C.N.R. could pro-
cure those rights if the province could not. In spite of the
expectation that the C.N.R. would secure those rights there
was an absolute refusal and also refusal to pay the province
any of the gross earnings until the province would under-
take to pay for the running rights. The basis of operation
was forty per cent, of the gross receipts which last year
had amounted to $93,011. The cost of running rights had
been $33,458, leaving $59,553 for the province. The gross
interest charge! annually was $311,000, an amount which
would increase o'- decrease according to the earning power
of the road. This would mean that the province was to
raise annually the sum of $250,000 to meet interest charges,
a very heavy burden.
The annual report of the Crown Lands Department, sub-
mitted on March 22, referred to the increase in revenue from
this source, due in part to the increase in stumpage rates
last year. Territorial revenue totalled $1,584,250. Referring
to forest fires, the deputy minister said : "There is no more
destructive agent in New Brunswick, and I may say in the
whole of the Dominion, than the forest fire. I think I am
safe in saying that during the past quarter of a century no
Crown Land report has been laid beforel the legislature
without a reference to the ravages of forest fires. The
spring of 1920 was the driest in fifteen years. The forest
destruction was consequently great; there were in all 312
fires, causing an estimated damage of $690,000 of which
amount $87,000 was Crown Lands. Sixty thousand acres of
Crown Lands were burnt over, of this, however, one-fifth was
old burns. Eighty per cent, of the fires occurred between
the 16th of May and the 10th of June, a period of 25 days
and during the whole of that time little or no rain fell."
Loans For Public Works
On March 25 a government bill respecting the construc-
tion of highways with federal aid was discussed. The min-
ister of public works explained that the purpose of the bill
WE'3 merely to change the manner of procedure with respect
to the borrowing of money for highway improvement. Under
the old act it was set forth that money should be borrowed
before July 1, and some had taken the ground that loans
could not be made after that date. Under the amendment
the borrowing power would date from and include the
year 1919. It would not be necessary to borrow the whole
$350,000 in one year, but if th&t sum was not all borrowed
it could be procured the following year, if necessary, to meet
federal aid conditions. The amendment gave no additional
borrowing power.
Fire Prevention Act
A fire prevention act is aJso being considered. On March
1 a delegation from the New Brunswick Board of Fire
Underwriters asked for such an act. The Fire Marshal's
Act in Nova Scotia was suggested as a model that would
largely meet the requirements. F. J. G. Knowlton and R. S.
Ritchie, of St. John, who composed the delegation, pointed
out to the government that the extent of fire losses in New
Brunswick wa.s out of proportion; the ratio had been larger
than in any other province in 1919, and 1920 had even ex-
ceeded the previous year. Passage of an act such as sug-
gested, which would give power to have all fires investigated,
was said to be one means of reducing losses.
The Grand Falls Co., Ltd., is making application for an
act providing that the time limited for the commencement of
its work in the development of water power at Grand Falls,
in the county of Victoria, be extended for a period of two
years from May 1, 1921. Premier Foster recently gave
out an opinion that the company's rights would expire in
April, 1921, because of their failure to expend $100,000 in
r,'Ctual bona fide development work at Grand Falls on or be-
fore January 10 last, or one ,year after the official stoppage
of hostilities in the great war. The Grand Falls Co., Ltd.,
is controlled by the International Paper Co., and other pulp
and paper interests have been known to be anxious to secure
the power rights at Grand Falls. At the last session of the
legisi&ture a special act was passed empowering the provin-
cial government to take over the power rights at Grand
Falls under certain conditions. P. T. Dodge, president of the
International Paper Co., presented the case for the bill on
April 6. A delegation from Grand Falls, on the other hand,
urged that the province take over the rights.
The house passed a resolution on April 7 urging that
the federal government limit the West Indies preference duty
to goods brought in through Canadian ports. In a discus-
sion on the Crown lands, it was urged that the stumpage
rate be increased up to $7.
Other legislation introduced includes a bill to alter the
tolls of the Southwest Miramichi Boom Co.; an increase in
the registration fees for motor vehicles and trucks; a bill
to authorize the municipality of Kent to make temporary
loans; a bill to authorize Sackville to issue debentures and to
bonus industries; a bill to enable Fredericton to issue de-
bentures; and amendments to the charters of Milltown and
St. Stephen. Westmoreland municipality was also enabled
to make tempoary loans.
April 15, 1921
THE MONETARY TIMES
21
DIVIDENDS AND NOTICES
DEBENTURES FOR SALE
DETROIT RIVER TUNNEL COMPANY
CITY OF REGINA
Detroit, Mich., April 5, 1921.
Notice is hereby given that the Annual Meeting of the
Stockholders of the Detroit River Tunnel Company for the elec-
tion of Directors and the transaction of such other business as
may lawfully come before the meeting will be held at the
Head Office of the Company, Room 300, Michigan Central
Terminal Building, in the City of Detroit, Mich., on the First
Thursday after the first Wednesday (being the 5th day) of
May, 1921, at 10 o'clock a.m.. Eastern Standard Time.
EDWARD F. STEPHENSON,
517 Secretary.
THE MERCHANTS BANK OF CANADA
QUARTERLY DIVDEND
A Dividend of Three Per Cent, for the Current Quarter,
being at the rate of Twelve I'er Cent, per annum, and a
bonus of One Per Cent, upon the Paid-up Capital Stock of
the Bank, were declared, payable on 2nd May next to share-
holders of record on the evening of 15th April, stock not fully
paid up on 1st February to participate in both dividend and
bonus on the amounts paid up on that date and upon later
payments from the date thereof.
By Order of the Board.
Montreal, 1st April, 1921.
D. C. MACAROW,
General Manager.
518
NOTICE OF APPLICATION TO PARLIAMENT
NOTICE IS HEREBY GIVEN that an application will
be made to the Legislative Assembly of the Province of
Ontario at the present session thereof by The Goodyear Tire
and Rubber Company of Canada, Limited, for an .\ct ratify-
ing and confirming ?.• Scheme of Arrangement between the
said Company and its Creditors whereby approximately
.$3,000,000.00 owed to the Goodyear Tire and Rubber Com-
pany of Akron, Ohio, will be paid by the issue of six per
cent, cumulative prior preference stock at par, the holders
of $1,219,920.46 of the notes of the Company will be paid by
giving three year eight per cent, notes with the privilege to the
Company of two yearly renewals on the payment with each
renewal of twenty-five per cent., and whereby Rubber Com-
mitment Creditors will be paid twenty per cent, in cash on
deliveries and the balance in ninety day notes with interest
at seven per cent, with the privilege to the Company of
securing three ninety day renewals upon payment of twenty-
five per cent, of the balance owing at the time of each re-
newal; and Fabric Commitment Creditors agree not to re-
quire the Company to take deliveries more rapidly than it
requires for production and to accept payment against de-
liveries twenty-five per cent, in prior preference stock or
preferred stock at par and seventy-five per cent, in cash;
a^nd whereby the par value of the common stock is decreased
from $100.00 to $10.00 a share; said plan to be declared
effective when it has been approved and consented to by
seventy-five per cent, in amount of each of the above classes
of Creditors, the Goodyear Tire and Rubber Company of
Akron, and by sixty per cent, in amount of the preferred
stock and common stock of the Company now outsta-nding.
ROWELL, REID, WOOD, WRIGHT & McMILLAN,
Solicitors for the .\pplicant.
DATED at Toronto this 11th day of April, A.D., 1921.
524
TENDERS FOR DEBENTURES
Sealed tenders marked "tenders on debentures," and
addressed to the city commissioners will be received up to
three o'clock p.m., Monday, April 25, 1921, for the purchase
of the following sinking fund debentures: —
$55,000 6% per cent., ten-year, cyclone loan.
5,700 6 per cent., fifteen-year, for concrete sidewalks.
19,400 6 per cent., five-year, for plank sidewalks.
15,400 6% per cent., 30-year, for water main extension.
20,000 6 per cent., 30-year, for domestic sewers.
38,510 6V6 per cent., 30-year, for water main extension.
The highest or any tender not necessarily accepted. For
further particulars please communicate with the undersigned.
JNO. E. SN0WB.4LL,
City Treasurer.
Regina, Sask. 525
PROVINCE OF ALBERTA
$2,000,000.00, 15-YEAR, SIX PER CENT. GOLD BONDS
Tenders will be received Monday, April 18th, no later
than twelve o'clock noon at the office of the Provincial
Treasurer, Edmonton, Alberta, for $2,000,000.00 fifteen-year
six per cent, gold bonds, dated April 1st, 1920, payable at
Toronto, Montreal or Edmonton. Delivery and payment at
Edmonton or Toronto at option of purchaser.
Tenders are to be addressed to the Provincial Treasurer,
Edmonton, Alberta^ marked "Tenders for Province of Alberta
Bonds."
Tenders must be accompanied by certified cheque for
$20,000.00.
Highest or any tender not necessarily accepted. Definite
bonds are ready for delivery in Edmonton on the day tenders
are received. Legal opinion will be ready on date tenders
will be opened and may be obtained from E. G. Long, 85
Bay St., Toronto, at purchaser's expense.
HON. C. R. MITCHELL,
Provincial Trep.'Surer.
Edmonton, Alta.
.523
Condensed Advertisements
" Positions Wanted." 3c per word : all other condensed advertisements
5c. per word. Minimum charge for any condensed advertisement, 65c
per insertion. All condensed advertisements must conform to usua!
style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance ; ,S0 per cent, extra if charged
WANTED. — A young man as Assistant Inspector for
the Province of Nova Scotia. One with experience in in-
specting and schedule rating of fire risks preferred. Apply
stating qualifications and salary asked, to Editor. Box 407,
Monetary Times, Toronto.
SECRETARY-TREASURER, age 30, of large company
in British Columbia, desires change and wishes connection in
similar capacity with well-established company anywhere in
Canada or United States. First-class accountant, with excel-
lent credentials; the more responsibility to be assumed, the
better. Prepared to report immediately for interview for
any legitimate proposition. Apply by wire or letter *o H.
.•\nscomb, 1921 Govo-nment St., Victoria, B.C. 517
22
THE MONETARY TIMES
Volume 66
SECTION 88 OF THE BANK ACT
Privileges and Powers of the Banks Discussed — Circulation
and the Benefits Therefrom
By a. B. Barker
IX a recent article on the Bankruptcy Act a leading assignee
attacks the banks in respect of their privileges under
section 88 of the Bank Act, and also in respect of their
alleged profits from their circulation. Unfortunately, how-
ever, he reads a meaning into the section which is quite con-
tiary to the text. The la-nguage of the section is plain, and
the various legal decisions have made it clear that it is to be
taken literally. He speaks of one merchant selling and de-
livering goods to another on the strength of the stock carried
by the purchasing merchant and a few days l&ter, when an
assignment is made, discovering the shipment covered by lien
to the bank under section 88. This could not possibly happen,
as under the act this security does not apply to merchants.
The act expressly states that "the bank may lend money to
any wholesr^le purchaser or shipper of or dealer in products
of agriculture, the forest, quarry and mine, or the sea, lakes
and rivers, or to any wholesale purchaser or shipper of or
dealer in livestock or dead stock or the products thereof,
upon the security of such products or of such livestock or
dead stock or the products thereof." This narrows down the
class to which the act applies to practically those who deal in
commodities commonly sold for cash.
The act further permits loans to wholesale manufacturers
upon the security of the goods, wares and merchandise,
manufactured by him or procured for such manufacture.
This means upon his raw material and finished product.
Limited to Wholesalers
It is to be noted that the act specifically restricts the
operation of the section to wholesalers only. The underly-
ing principle of the act is that the bank in making advances
under this section creates its own security, and that the
assets of the customer are increased to the value of the
amount loaned. With the dealers enumerated this is clear.
The products dealt in are practically cash commodities, and
must be paid for on delivery, and without the assistance of
the banks advancing in this way, trade in these commodities
would be greatly hampered, and the turnover of the dealers
much reduced. With manufacturers the raw material must
be promptly paid for, and by a loan under this section the
manufacturer is able to buy for cash, and so gets closer
prices. He must pa.y wages and various manufacturing ex-
penses in cash, and the advances obtained in this way, by
enabling him to do this, increase his assets by the amount
so loaned. Without such assistance the manufacturing in-
dustry throughout the country would be seriously handicapped.
In its actual working in pra-ctice the details of such
security under the section are so exacting, that it can easily
be seen why the advances under it are limited to wholesalers.
With small advances the work of handling them is out of all
proportion to any possible profit to be derived by the bank,
and this security in such cases is not looked on with much
favor by bankers.
Where the bank, however, creates its own security by
its advances, it is surely entiled to the benefit of such se-
curity.
Mention is also made in the article of assignments of
book debts, and here he is on stronger ground. In practice,
however, book debts under the Canadian system of merchan-
dizing are usually wretched security. The ordinary prac-
tice in selling is to draw on the purchaser and discount the
draft. This is the usual course between wholesaler and re-
tailer. Between retailer and consumer,' of course, credit
dealings are usually on open account. The bulk of people
pay these accounts monthly, so that apart from the accounts
arising from the previous month's sales, the accounts will
consist of the slow-paying customers. With the wholesaler
who draws on shipment, the accounts will consist of drafts
returned and charged back. Not a ver>- satisfactory security
on which to rely, and most bank rules expressly wa-rn mana-
gers of the weakness of such security.
Circulation
In the comments on the circulation, however, the writer
of the article is quite at sea. He mentions the circulation
as $250,000,000, etates that the banks have free use of this
without interest charge, and estimates the profit from this
at about $15,000,000 a year.
The facts are, however, that against this circulation,
which at the end of December was $228,758,000, the banks
have deposited with the minister of finance gold and Do-
minion notes as a specific security $113,352,000 — so that
only $115,406,000 comes under the head of ordinary circula-
tion. It can hardly be said that the amount covered by the
gold reserve referred to, is free circulation. Before the war
this ordinary circulation, permitted up to the amount of paid-
up capital, was not taxed, but now it pays, a t?oX of 1 per
cent, per annum. The value of circulation to the bank de-
pends on the use which can be made of it. The bank cannot
use the whole of it in loans — much as it would like to. A
certain reserve in gold and legals must be held to retire any
presented for redemption in the usual course of business,
and the reserve so held is usually considered to be about 25
per cent. This will be about $2.5",000,000, leaving $90,000,000
which can be used in the bank's business in loans and dis-
counts, the only definite charge against it being the 1 per
cent, charged by the government on the circulation not cov-
ered by a deposit of gold and legals in the gold reserve.
Indirectly, however, the banks do give value for this
privilege. Each day the banks take on deposit from their
customers, and give credit therefor, cheques and notes on
other banks, for which they do not receive settlement until
the following day. It is assumed, of course, that these items
will be paid on presentation, and therefore in the ordinary
acceptance of the term, they are cash on hand. In reality,
however, they are not, and the bank only realizes on them
when they are paid. At the end of December last, the
cheques in transit in this way amounted to $149,969,929, and
the notes of other banks $53,501,062, making the total
amount in transit $200,000,000. This amount, not collected
for at least one day, is in effect a free loan, and is there-
fore a fair offset to the $90,000,000 of loanable funds received
from the circulation.
Most of the current misunderstanding between banks
and public comes from a misconception of the real functions
of a bank. A bank is a trader in credit. It buys credit from
its depositors, paying in interest and services, and sells to
its borrowers. Its relations with its depositors are those
of debtor and creditor. The depositor pays in cash and in-
struments for the transfer of debts, cheques, drafts, etc.,
and receives in exchange a credit on the bank's books. This
credit he expects to be able to avail himself of at any time,
and a bank must maintain sufficient cash on hand to satisfy
the calls made on it by its depositors from day to day. For
this reason it cannot use the whole of its deposits in loans,
but must carry a certain percentage on hand in the shape of
cash, and readily available assets. Ca-sh in the vault yields
no revenue, and as a rule, the more readily available an in-
vestment is the less it returns to the holder. If all de-
positors wanted their money at once, it is obvious no bank
could continue in business, but experience has shown that
only a certain percentage will be called for in the usual
course, and by resei-ving this and a further amount for any
sudden and unlooked for demand, the balance may be loaned
to the business community. As, however, its liabilities are
payable on demand, the bank's business investments must
be of the class not likely to be of long duration.
The finance committee of the London, Ont., city council
recomrriends that local bankers be requested to open for one
hour Saturday evenings to receive deposits, the plan being
to limit the field for operations of burglars and bandits.
April 15, 1921
THE MONETARY TIMES
Lubricants
Rot Manufacturing,
Mining and Milling
CYLINDER OILS
Imperial Valve Oil
Imperial Cylinder Oil
Imperial Capitol Cylinder Oil
Imperial Beaver Cylinder Oil
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il Solar Red Oil
Ll Atlantic Red Oil
Ll Junior Red Oil
ll Bayonne Engine Oil
ll Renown on
ll Gas Engine Oil
The Idea Behind Them
IMPERIAL Lubricants are more than good
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scientific lubrication — a particular grade for
every type of service.
This insures the correct lubrication of every
journal, bearing or other machinery part. Con-
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generated and utilized for the big job —
production.
The regular use of Imperial Lubricants
increases plant profits and reduces overhead
expense — fuel, maintenance, depreciation. Even
the cost of lubrication is reduced. Read these
convincirg testimonials from big users of Im-
perial lAil)ricants.
Correct Lubrication Cuts Overhead.
In buying lubricating oils from you we have
been buying "Correct Lubrication" and correct
lubrication means cutting down overhead expense.
We wish to thank you for the splendid service you
have rendered vs.
— Canadian Vegetable Parchment Co. Limited.
Service and Quality O.K.
We wish to convey to you our appreciation
of the service rendered by your company in the
handling of our orders. The quality of your
products has always proven to be as represented
and satisfactory to our use.
— Swift Canadian Co. Limited.
Imperial Lubrication Engineers will gladly
advise you on lubrication. Write to 56 Church
St., Toronto.
IMPERIAL OIL LIMITED
Power-Heat -Li^ht -Lubrication
Five Canadian Refincnes Braiichos In All Cities
1
THE MONETARY TIMES
Volume 66
I'KINCE EDWARD ISLAND SESSION
NET DEBT HAS INCREASED IN MARCH
Power Company Plans Electrical Supply for Whole Province
— Legislation is Light
Dominion Government Closes Fiscal Year With That Result-
Ordinary Receipts Greatly Exceed Disbursements
■p^EW changes are expected at the present session of the
-■• Prince Edward Island Legislature, which opened on
March 10. The 1920 session, the first under the Liberal ad-
ministration, headed by J. H. Bell, brought new taxation, 'an
extensive roads program and other legislation. It is ex-
pected that the revenue will now cover the expenditure of
the province. In the speech from the throne on March 10
Lieutenant-Governor Murdoch McKinnon reviewed the activi-
ties of the government in the promotion of agriculture, im-
proving education, launching a roads program and keeping
expenditure within revenue. In the debate on the speech the
opposition maintained that the special report on the finances
of the province, prepared when the Liberals assumed office,
had not been a ti-ue statement, and that the increase in
revenue and reduction in debt claimed by the government
was wrong on that account
One of the most important items of business before the
house is the application for incorporation of the Prince
Edward Island Light, Heat and Power Co., Ltd., with $1,000,-
000 capital. It plans to distribute electricity to all parts of
the province, rural and urban. The incorporators include
Henry A. Sanders, of London, Eng., capitalist and electrical
engineer; Noah A. Timmens, of Montreal, capitalist; John A.
Bennan, of Chicago, electrical engineer; William J. O'Leary,
of Montreal, electrical engineer; and J. J. Hughes, ex-M.P.
of Charlottetown and Souris.
Other companies to be incorporated are the Charlotte-
town Garage Co., Ltd., capital $10,000, the Pui-die-Ferguson
Co., Ltd., and the Cardigan Milling Co., Ltd.
The public bills introduced include an Act to amend the
Road Act, an Act respecting arrears of taxes, and an Act to
amend an Act for the prevention and suppression of fires.
On March 24 a resolution was passed urging the Do-
minion government to widen the gauge of the Pl-ince Edward
Island Railway, and to construct a second car ferry steamer
to ply between Port Borden, P.E.I., and Cape Tormentine,
N.B.
Telephone Service and Rates
An amendment to the charter of the Prince Edward
Island Telephone Company provoked much discussion,
especially as regards the taxes it should pay and its relation
to rural lines. Clause 1 reads as follows: — "The telephone
company shall have for a period of five years, from the
31st day of December, 1920, the exclusive right to conduct
the telephone business for hire rental or tolls between any
one point or points and any other point or points at which
the company now has in operation a telephone line or lines
within the Province of Prince Edward Island. If the com-
pany hereafter shall construct a telephone line or lines be-
tween any point or points not now served by it or from any
point now served, to any point not now served,
then for the term aforesaid, the company shall
have the exclusive right to conduct a telephone busi-
ness for hire rental or tolls between such points; provided,
however, that a telephone company may from time to time
relinquish its exclusive privileges with respect to districts
which may be operated by rural telephone companies, the
lines of which said companies are connected with the tele-
phone company's system."
.Application is also made for the incorporation of the
Institute of Chartered Accountants of Prince Edward Island,
and of the P.E.I. Potato Growers' Association.
The inspection staff of the Toronto branch of the
Travelers Insurance Company, composed of senior inspector
J. A. MacKenzie and inspectors J. F. Henry, E. A. Johnson
and E. G. Prince, all of whom were former marine engineers,
have been made honorary members of the National .Associa-
tion of Marine Engineers of Canada.
ORDINARY revenue of the Dominion government in March,
1921, was about $2,.500,000 below the previous month,
while ordinary expenditure was about $4,000,000 higher. As
compared with a year ago the result was also less favor-
able. For the twelve months, however, there has been a
handsome increase in revenue, while disbursements show
only a moderate advance, leaving a surplus of close to
$100,000,000 as compared with only $40,000,000 in 1919-20.
."Vs regards the assets and liabilities the net debt shows
an increase during the year of more than $72,000,000. The
gross debt has changed but slightly, but those accounts
offsetting the gross have been subject to considerable
change. The following figures g-ive the details of receipts
and expenditures and the public debt, together with
comparisons : —
PUBLIC DEBT
LlABlL
Funded Debt —
Payable in Canada
do in London . ...
do in New York,, ,
Temporary Loans , . , . ,
Bank Circulation Redemp
Dominion Notes
Post Office Savings Banks
Dominion Government Savings BanI
Trust Funds
Province Accounts
.Miscellaneous and Banking Accounts -
Total Gross Debt.
Investments —
Sinking Funds
1920 IS-il
S402.190.403 06 $478,084.96117
247,733.327 61 340,387.202 05
154,457,075 45 137,697,759 12
Province Accounts
lisc. & Bkg. Accts.
Less Non-active.
336,001,469 72
135.873.000 00
88.956,000 00
5,959.083 15
303.284,628 04
30,289,007 65
10,842,741 50
12,947,910 1»
11,920,481 20
30,457.325 12
2047,952,127 56 2082.7i!6,375 80
336.001,469 72
135,874.000 00
90,834.000 00
6.311,522 76
271,579 549 92
28,474,649 63
9..590.915 06
13,500.335 34
11.920.481 20
42.%7,041 93
3014.483.774 12 3029.810,341 36
154,457,075 45 137.697,759 12
2.296.327 90 i 2.296.327 90
596,701.001 31
: Assets
553 555,7,S5 54 , .596,704,00131 553,.555.7.55 54
774,843.335 38 718,515,897 53
27 .855. 131 86
Customs .
Post Office
Pbc. Wks. Rys.&Cs.
War Tax Revenue-
Inland Revenue. .
Business Profit Tax
Income Tax
Other V\'arTax Rev.
Other Revenue Accts
Total..
20,316.971 95
4.3)3,371 IH
2,301,308 69
5,291,855 19
1,311.692 09
8,418 341 90
7,890.062 03
43.702 82
3,149.898 33
167.429,812 94
42,282,851 76
20,801.308 69
43,936,862 18
15,232.754 71
44,737,468 86
17.872.202 38
1,578,055 67
26.961,190 56
53,100.204 19 380,832,507 75
Month of
Total to 31st
Mar.. 1921
Mar.. 1921
* cts.
S cts-
I0,018,3'I5 84
162.812,951 02
2,973 511 54
36,699.473 89
2,000,000 00
23,998,409 74
1,7.54,380 88
38.873,833 02
5,790,410 90
76,441,812 26
1,905,444 03
37,601,511 61
6,147,555 66
.38.814.496 17
5„581 68
1.806.621 34
1,851.658 59
34,316,920 22
32,449,849 12
451,366.029 27
Agriculture ..
Pensions ....
Pub. Wks. Con. Fund ;
Post Office
Dom. Lands A Parks
Soldiers Ld. Settlm't
■ Civil Re-Estab.
Other Expend. Accts.
Total
6,322,300 49
99.812.4.S0 7S
263,000 06
4.264.983 12
2,482,452 95
23.394,001 43
874 555 S5
7.273,739 41
601,161 64
17,375.011 2fi
171, .528 71
2,864,328 45
3.015,030 06
37.036,145 73
8,430,830 66
44,128.661 49
9.058,233 48
104.731.316 61
31,219.097 no
340,880.668 2^
4.298,185 83
424,393 40
3,015.168 94
717.511 94!
2 333.675 77'
281.206 021
56.975 82!
3.300.631 59
9.4.57.016.54
129,118 279 47
4.746.670 49
35.312.736 44
8,816.176 76
20.348.014 21
3.645,416 07
1,924.978 29
3I,7%,931 42
121.806 075 83
23,917.765 851 357.515.278 98
Public Works, includ'g
Railways and Canals
Railway Subsidies
36,364,156 IS
4,257.114 Si
388.213.018 62:
7,591.492 33
2,729,582 79
17,214.362 67
31.102.444 44
April 15, 1921
THE MONETARY TIMES
25
£i|iiiiiMiiiii iiiiiiiiiiiiniiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniitiiiiiiiiiiiiiiiii:
i CHARTERED ACCOUNTANTS I
nlllilllliiliil iiiiiiiiiiilllllllltllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllillllllllllllllllllllllllllllllllllllllllllinilllllllllllllllli'
KENNETH BOWMAN
Chartere
(Successor to Bs
EDMONTON
Chartered Accountant
accessor to Baldwin, Dow & Bowma
ALBERTA
CHARLES D. CORBOULD
Chartered AccoDntant and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. >Vinnipeg
Correspondents at Toronto, London, Ens-,
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada Bldg., Saskatoon, Sask.
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Braocb at Naaaimo, B.C.
Crehan^ Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of T<
LONDON
to Chambers
ONTARIO
Established 18Sf2
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Ckamberi
Winnipeg, Man.
Arthur E
Phillips
& Co. !
Chartered Accountants |
508-509 Electric Railway
WINNIPEG
C.ihlc .Address— ■■ L'nra
Chambers
Man.
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS
24 King Street West - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Specialists on Factory Costs ami PRonccTioN
"lAOn Bank of
Ot^XJ Hamilton Bldg.
TORONTO
Huhert Reade & Company
Chartered Accountants
Auditors, Etc.
407 408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone- Main 7014
LUMSDEN BUILDING TORONTO, CANADA
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Chartered Accc
Receivers,
itants. Trustees
Liquidators
Merchants Bank Bldg-. IS Wellington Street >Vest
E. R. C. Clarkson k -,,l,r i,„ I i.ii;j
u n I .„l.l,irf (-..-.r.Hon hstablished l)Nb4
G. T. Clarkson
R Williamson. C.A. J. D. Wallace, C.A.
A. J. Walker. C.A. HA Shiach C.A.
RUTHERFORD WILLIAMSON & CO.
Chcirlered AccounUmta. Trustees una
Liquidators
S6 Adelaide Street East, TORO.STO
B04 llcGiLL Building, .MONTREAL
Cable Address -WILLCO."
Rerresented at Halifax, St- John. Winnipeg,
Vancouver.
HENRY BARBER & CO
Established 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railway Building.
6 King Street West TORONTO
Millar, Macdonald & Co.
Chartered Accountants
Home Bank Building, 428 Main Street
WINNIPEG
Norman B. McLeod
Chartered Accountant
AUDITS INVESTIGATIONS
COST ACCOUNTING
803 Kent Bldg. - TORONTO
Phone MAIN 3914
THE MONETARY TIMES
Volume 66
POWER OF MANAGER TO CALL SHAREHOLDERS'
MEETING
Remuneration of Shareholder Undertaking Management-
Important Points in Company Law Clarified
IN the case of Marks v. Rocsaud Co., Ltl., recently before
the Supreme Court of Ontario the court gave two de-
cisions respecting- company law: (1) The manager of a pri-
vate company incorporated under the Ontario Companies Act
has no authority, as manager, to call a meeting of share-
holders, and where a meeting has been called by him as man-
ager "to discuss matters of importance pertaining to the
company's affairs," unless all the shareholders are present
at the meeting, or are represented by proxy, after due notice
of the business to be transacted, no resolution passed thereat
can bind the shareholders. (2) No by-law of a company is
necessary for the employment of a director in some other
capacity, or for his remuneration for such additional ser-
vices; i\nd whei-e the evidence shows that a shareholder defi-
nitely undertook by arrangement to manage the company's
affairs, and that he expected to be remunerated for his ser-
vices, and that this was recognized by nearly all the other
shareholders, he is entitled to be paid for such services.
The facts and decision of Mr. Justice Orde are: The
defendant company was incorporated on the 24th June, 1911,
as a private company under the Ontario Companies Act with
an authorized capital stock of $100,000, with five provisional
directors and head office at Hamilton. All the capital, con-
sisting of 1,000 shares, was issued and fully paid up."
Company was in Difficulties
In 1917 and the early part of 1918 the company was in
a bad way and was involved financially. At a meeting of
shareholders, held on the 28th May, 1918, the plaintiff, who
then held 100 shares, submitted a proposition to purchase
51 per cent of the stock and to advance certain moneys to
the company. This proposition resulted in the plaintiff and
Mr. H. N. Kittson, one of the original incorporators, and
already a holder of 280 shares, together advancing certain
moneys and acquiring certain additional shares, so that by
the 12th June, 1918, the plaintiff had 260 shares and Kittson
387, making 647 in all out of the 1,000 issued shares, thereby
giving the plaintiff and Kittson control.
The plaintiff and Kittson had for some time during the
earlier part of 1918 been conferring as to the company's
affairs and the possibility of ' improving its position. The
plaintiff says that there was an arrangement made with
Kittson whereby the plaintiff was to become general manager
• of the company, and that he and Kittson, as well as Baby,
the secretary-treasurer, were to be remunerated for their
services. The plaintiff" says he wrote Kittson in July, 1918,
stating that he (the plaintiff) was to draw $200 per month
as salary, and that Kittson was to receive $50 per month for
his services in looking after the business at Hamilton.
This letter was not produced, and the plaintiff says that
his file containing the copy disappeared, so that the only
evidence of its contents is that of the plaintiff himself.
The plaintiff says that he was appointed manager of
the company in June, 1918, by Kittson and Baby. Kittson
was then a director, and, according to the last recorded
minutes of any directors' meeting prior to that time, also
vice-president.
It is admitted that thei-e was, at that time, no meeting
of directors, formal or otherwise, at which the plaintiff was
authorized to act as manager or in any other capacity, but
there is no doubt about the fact that from about the middle
of June, 1918, onwards, Marks looked after the business of
the company from its Toronto office. Baby, the secretary-
treasurer, being engaged at the plant at Erin.
It appears to have been taken for granted by the plain-
tiff and Kittson that, having control, they could practically
undertake the complete management of the company.
On the 9th of September, 1918, a meeting of shareholders
which is styled the "Annual General Meeting" was held. At
a meeting of directors held immediately afterwards, Mr.
Kittson was elected president, the plaintiff vice-president,
and Ml-. Baby secretary-treasurer. As part of the business
at this meeting, it was resolved that a salary of $150 per
month, dating from the 1st June, 1918, be paid to Baby. No
mention is made of the plaintifl"s position as manager or
of any salary to him. The plaintiff continued, however, to
perform the duties which he had entered upon in June, and
Mr. Kittson admits that from that time he regarded the
plaintiff as the "managing director" of the company. As
he put it, the plaintiff was the director who managed the
company.
Annual Meeting Called
The company's business was not improving and in
October, 1918, Marks wrote Kittson asking him to call a
shareholders meeting. This was not done, so Marks called
the meeting, signing- the notices as "manager."
There was some question as to the regularity of this
meeting. The plaintiff had no authority, as manager, to call
a meeting- of shareholders. Nor did the president's failure
or refusal to call a meeting justify the plaintiff in assuming
the right to call it. A special general meeting of shareholders
can be called only upon the authority of the directors; and,
although the plaintiff held a sufficient number of shares to
enable him to exercise his right to have a meeting called
under sec. 46 of the Ontario Companies Act, he did not fol-
low the requirements of that section. So that, unless all the
shareholders were present at the meeting, or were repre-
sented by proxy after due notice of the blisiness to be trans-
acted, no resolution passed thereat could bind the share-
holders.
I think that the evidence shows that in June, 1918, the
plaintiff' definitely undertook, by arrangement with Kittson
and Baby (Kittson and the plaintiff together holding two-
thirds of the stock), to manage the company's affairs at its
Toi'onto office, and that the plaintiff expected to be remuner-
ated for these services. These facts are recognized by al-
most all the shareholders. Under these circumstances, un-
Iss there is some technical reason for refusing- the plaintiff
relief, he ought to recover.
Under these circumstances, the plaintiff is, in my judg-
ment, entitled to be paid for his services as upon a quantum
meruit;, and, as the value thereof has been practically deter-
mined by the shareholders tliemselves at $1,200, there should
be judgment for the plaintiff for that amount, with costs.
PRESCOTT BANKER'S COSTLY MISTAKE
At the assizes in Brockville, Ont., on March 31, Justice
Lennox reserved judgment in an action for damages brought
by Duncan McKay, Prescott, against the Merchants Bank,
and J. C. Carruthers, G.T.R. ticket agent in that town. Mc-
Kay last July purchased from Carruthers a ticket for De-
troit, tendering in payment a cheque for $15.50, the amount
of the fare. When he called up the bank the accountant in
mistake replied that "Dr." instead of "Mr." McKay did not
have an account and told Carruthers he felt sorry for him.
The latter immediately got out a warrant for McKay, who
was taken off a train at Kingston, shackled, locked up and
taken to Prescott where next day the case was dismissed,
it being found that he had $100 on deposit in the bank. Mc-
Kay had accepted a position in Detroit at 55 cents an hour,
and this he claims to have lost through the transaction.
Justice Gibsone rendered judgment in Quebec on April
3, in the case of the city of Levis against the "Prevoyants du
Canada," an insurance company, which had claimed exemp-
tion from the business tax in the city on the ground that
they were not carrying on a commercial business but were
a mutual organization. His Lordship decided that the com-
pany were liable to pay the tax in future.
ADi-il 15, 1921
THE MONETARY TIMES
llllllinilllMIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIIMIIIMUIinilllllMIIIIIIIUIIIIIIIIIIIIIIIIIIMIIMIIIIIIMIIMIMIIIIUIIIIinnMlllillllllMIIIIIIIIIMIIIIu
I REPRESENTATIVE LEGAL FIRMS |
^MIIIIIIIIIIIIIIIIIIIIUIIIIIMMIIIIIIIIUinilllllllllllllllllllMIIUMIIMIIIMIIIIIMIIIUIIIinilllllHHUIIIIIMIUIUnnilllinilllllllllinillllllllllllllllllHI^
CALGARY LETHBRIDGE, Alta. SASKATOON
Charles F. Adams, K.C.
Bank of Montreal Bldg.
CALGARY - - ALTA.
L. M. Johnstone. K.C. J. Norman Ritchie
W. S. Gray
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE - Alberta
C. L. DURIE. B.A.
B. M. Wakel
.0 1
DURIE & WAKELING |
Barristers a
nd Solicitors
Solicitors for tlic B:
Great West Perniar
Monarch Life Assuranc
nk of Hamilton,
ent Loan Co.
eCo.
The
The
Canada Building
Saskatoon. Ca
nada
W. F. W. Lent. K.C. A
LL.B. H. D. .Ma
LENT, MACKAY & MANN
Barristers. Solicitors, Notaries, Etc.
30.5 Grain E.\chan6e BldB . Calgary. Alherta
Cable Address.' Lenjo." Western Union Code
Sohcltors for The Standard Bank of Canada.
The .Northern Trusts Co.. Associated .Mort-
i;age Investors, &c.
WRIGHT &WRIGHT
Barristers, Solicitors, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. A. C. Rutherford. K.C. LL.D.
F. C. Jamicson. K.C. Chas. H. Grant
S. H. McCuaig Cecil Rutherford
KUTHERFORD. JAMIESON
& GRANT
Barri»ter§, Solicitors, Etc,
514-18 McLeod Bldg. Edmonton, Alberta
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barristers, Solicitors, Etc.
Solicitors for Bank of Montreal. The Trust
and Loan Co. of Canada. British Canadian
Trust Co.. «c.. &c. .
C F. P. Conybeare. K.C. H. W. Church. M.A.
R. R. Davidson. LL.B.
Lethbridse • - Alta.
MEDICINE HAT
G. F. H LoNO,
LL.B.
J. \V. Sleight. B.A.
LONG
&
SLEIGHT
Barristers, etc.
MEDICINE
HAT
ind BROOKS, Alta.
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers. Etc.
Solicitors-Bank of Montreiil
Canadian Bank of Commerce
Moose Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT. SASK.
TORONTO
G. W. MORLEY & COMPANY
Barristers, Solicitors, Etc.
802 Lumsden Building, Toronto
Solicitors for A. G. Sp.rkling & Bros, of Can.,
Ltd.; A, J. Reach Co. of Can.. Ltd.; Dominion
Chautauquas. Ltd.. etc.. etc.
Special attention Riven to Corporation work
and colic
Cahlc .Wdr
■.Morley." Toronto
VANCOUVER
\V. J. Bowser. K C. R. L. Reid. K.C.
D. S. Wallbridfie A. H.Doufilas J. G. Gibson
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers, Solicitors, Etc.
Solicitors for Bank of .Montreal (Bank of
British North America Branch)
Yorkiliire BuildiaK. 525 Seymour St., Vancoaver, B C.
Your card here would
ensure it being seen by
the principal financial
and commercial interests
in Canada. Ask about
special rates for this page.
J. A. THOMPSON & CO.
Government and Municipal Securities
Western Mu
cipal. School and Saskatchewa
ne Co. Debentures specialized
COKRi:si'<5.\DK.NCE INVITED
Union Bank Building
WINNIPEG
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Elxchange
Calgary, Alta.
A. J. Pattison Jr. & Co.
Specialists Unlisted Securities
106 BAY STREET - TORONTO
28
THE MONETARY TIMES
Volume 66
News of Industrial Development in Canada
Shawinigan Water and Power Company to Establish Steamship Line — Lumber Trade at
the Coast is Picking Up—Cape Breton Pulp Companies Prepare for Big Season — Vickers
Plant Has No More Orders— Three American Branch Plants to be Located in Ontario
"P LANS for the development of a new enterprise which will
■■■ favorably affect the pulp and paper industry, and which
will be particularly welcome to Quebec manufacturers, have
been outlined generally by J. E. Aldred, president of the
Shawinigan Water and Power Company. In the effort to
facilitate the economical operation of the various plants along
the St. Maurice River and to connect them directly with
their export markets, Mr. Aldred stated that the establish-
ment of a line of steamers to ply between Three Rivers and
United States ports was in process of being carried out, and
that the near futui-e would pi-obably see the plan definitely
effected.
"The development," said Mr. Aldred, "is a logical one,
and one which we have had in mind for some years past.
With the phenomenal grovrth of the pulp and paper industry,
the manufacture of chemicals and other products along the
St. Maurice, the time seems favorable to the carrying out
of our original plans, whereby the different industries will
have direct connection by water with their marl<ets across
the border. The port of Three Rivers lends itself admirably
to such a scheme, the harbor there possessing the essential
natural facilities for handling the business emanating from
the new paper mills there, together with that from up the
St. Maurice."
Manufacture Paper Machinery
Some time ago it was announced that the Port Arthur
Shipbuilding Company would go into the pulp and paper
machinery manufacturing business. A statement has been
made by A. B. Conmee, secretary, outlining the intentions of
the company. He says: "We plan to branch out into this new
line of manufacture on as large and extensive a scale as
possible, and expect soon to be making such equipment for
the trade as digesters, grinders, chippers, slashers, barkers,
pumps, screens, wet machines and board and paper machines.
"Our plant was largely designed for the building of
ships, their engines and boilers, and, geographically located
as it is, it was found necessary to make it almost a self-con-
tained unit, in order to carry on the many and diversified
forms of work entering into the construction of a complete
ship. We, therefore, have available large fabricating shops
and assembling floors which are served from such buildings
as the pattern shop, forging, machine, boiler, pipe, copper-
joined sliops and the iron and brass foundries, all of which
buildings are modern and equipped with up-to-date ma-
chinery and tools and overhead cranes, the entire plant being
operated with the aid of electrical compressed air and hy-
draulic power. The facilities of these shops in the way of
equipment are most favorable for the manufacture of the
heavy and complicated types of machinery and equipment
necessary for the successful manufacture of pulp and paper
machinery. We also contemplate to install, in addition to our
present foundry facilities, an electric steel furnace."
According to reports fi'om the British Columbia coast,
the number of orders received, both for home and export
needs, during the past few weeks has made the lumber mer-
chants quite optimistic. For some time now the trade has
been very much depressed, with hardly any business, but a
change is taking place. During the past three weeks between
fifty and sixty mills and logging camps have opened up "for
the summer operations, and only a few hundred unemployed
loggers now walk the streets of Vancouver. There has been
a slight cut in the rate of pay, but not enough to make any
appreciable difference to the individual. Now that the loggers
have definitely broken away from the One Big Union, they
are inclined to take a more reasonable view of the economic
situation, and do not insist on sharing in the benefits of good
times without also sharing in the pinch of occasional de-
pressions.
Included among the orders on hand just now is one for
eight million feet of ties for Egypt, to be shipped to Alex-
andria next month by the Canada Overseas Trading Company.
Cape Breton pulp companies are preparing for the big-
gest season's cut of many years, according to reports from
Sydney, N.S. Cheaper water freight i-ates have created an
American demand for Cape Breton pulp in preference to
Quebec and New Brunswick pulp, which has to be handled
by rail.
Clarke Brothers Paper Mills, Ltd., have opened their
new plant, and word has been received that they have started
making boxes at Glen Falls, just out of St. John, N.B. The
plant will be used exclusively for the manufacture of fibre
board, as well as corrugated and fibre board boxes, which
will be made from the highest grade of Kraft pulp, to be
supplied by Clarke Bros., Ltd., and shipped across the Bay
of Fundy from the Bear River, N.S., plant. Their shipping
facilities are good, being served by two railways, the Cana-
dian Pacific and the Canadian National; they also have the
advantage of the ocean port of St. John.
Following the launching of the "Idefjord," the first of
the two steamers being built by Canadian Vickers, Ltd., for
the Norwegian American Line, Christiania, at Montreal last
week, a serious note was sounded by P. L. Miller, general
manager of the company, with regard to shipbuilding. After
remarking that Vickers had felt especially honored by re-
ceiving the contract for the Norwegian ships, owing to the
strict requirements of Norwegian registry, he said that the
company had no more building work on hand after these two
ships were completed. The company could not continue to
pay the same wages that were paid during the war. He
thought that at a time like this half a loaf was better than
no bread, but labor apparently did not agree, and in conse-
quence the firm would probably be compelled to shut dovim
for a year.
Packers Go Back
Employees of the Chatham, Ont., plant of the Wilson
Canadian Packing Co., who went on strike last week as a
result of a twelve-and-a-half per cent, cut in wages decided
to accept the new wage scale and return to work, accord-
ing to a statement issued by the management of the plant.
No settlement has yet been reached between Toronto packing
companies and employees, however. The companies have not
been affected to a very large degree, and report that they
are able to get all the labor necessary to operate their plants.
Two new industries, the Fiiller Brush Co., of Hartford,
Conn., and the Coffield Washer Co., have decided to erect
plants in Hamilton, according to C. W. Kirkpatrick, in-
dustrial commissioner. The Fuller Brush Co. employs 1,700
hands in its plant at Hartford, and had a turnover last year
of $5,000,000, it was stated. About 100 hands will be em-
ployed in the Hamilton plant, but it is expected that that
number will be substantially increased in another year.
The Coffield Washer Co. will manufacture a new type of
electric washing machine. It is supported by local capital
and will commence operations in a few weeks. About 50
hands will be employed at the start.
President Rea, of the Woodstock, Ont., Board of Trade,
has received word that the American Ironing Machine Co.,
of the United States, which recently considered Woodstock
as a site for the location of its big Canadian plant, has de-
cided to locate there and start manufacturing within a
couple of weeks. The plant will be situated on Beale St.
The Kirsch Manufacturing Co., a large American company,
which has just decided to come to the city, is expected to
establish there soon.
A new electric steel foundry plant has been opened a^t New
Glasgow, N.S., by J. W. Gumming Manufacturing Co., Ltd.
April 15, 1921
THE MONETARY TIMES
IF you are not younger than 22 years
or not older than 41 years and in good
health, send for particulars of our famous
Money-Back Policy
Please state date of birth.
The Travellers Life
Assurance Company of Canada
MONTREAL, QUE.
Hon. GEORGE P. GRAHAM, President.
LONDON
GUARANTEE AND
ACCIDENT COY., Limited
Head Office for Canada - Toronto
lility. Elevator. Contract, Personal Accident. Fide
ee. Internal Revenue, Sickness, Court Bonds,
Teams and Automobile.
AND FIRE INSURANCE
IT PAYS TO INSURE YOUR AUTOMOBILE
WITH
The Canadian Surety Company
M
axitnum oervice.
Minimum Cost.
CANADIAN STRONG PROGRESSIVE
/v, fm&'m9M,9Si»^^&&¥i99nm
FIRE INSURANCE
AT TARIFF RATES
Capital Subscribed
$500,000
General
Fire
Insurance
Accident
Health
Plate
Glass
Bnrglary
A. H. Hah, Vice-President Home Opficb
J O. .Melin, Sec.-Treas. lOth Floor, Electric Railway Chambers
Good Openings for Live Agents
'"^ iV^NNllPJEG;MAN ITOBA . •
Boiler
Explosion
Palatine Insurance Company
LIMITED
OF LONDON. ENGLAND
Capital Fully Paid - $1,000,000
Fire Premiums, 1919 3,957,650
Total Funds - 6,826,795
Head Office : — Canadian Branch
COMMERCIAL UNION BUILDING, MONTREAL
W. S. JOPLING, Manager
Toronto Office— 60 KING STREET WEST
Jones & Proctor Bros.. Li.mitbu, Asents
piiiiiiiiiiiiiffiiiiiiiiiiiiiiiiiiinniiiiiiiiniinm
I Automobile— 1 92 1 —Season |
1 Policies to cover ANY or ALL motoring risks 1
I ATTRACTIVE AGENCY CONTRACTS I
I British Empire Fire Underwriters |
I 82-88 King Street East, Toronto |
1 Assets Exceed $4,000,000 1
fjIIIIIIIIIIIIIUIIIIIIIIIIIIIIIIIIIIIillillililllllllllllllllllllllllllllllUlllllllUlillllilU^^^^^
ASK FOR AN AGENCY FROM THE
"GRESHAM"
Liberal Policies Reduced Premiums
ESTABLISHED 1848
Funds Exceed Fifty Million Dollars
Gresham Life Assurance Society
Gresham Building
MONTREAL
THE EMPLOYERS'
LIABILITY ASSURANCE CORPORATION
OF LONDON, ENG. LIMITED
ISSCES
Personal Accident Sickness
Employers' Liability Automobile
Workmen's Compensation Fidelitj' Guarantee
and Fire Insurance Policies
w.
WOODLAND
General Manager for Canada and Newfoundland
Lewis Buildina;,
MONTREAL
JOHN JENKINS,
Fire Manager
Temple Bldg.
TORONTO
THE MONETARY TIMES
Volume 66
NEW INCORPORATIONS
Capital lor Week Ended April 13 is $24,490,000, Compared
With $13,095,900 Previous Week
AUTHORIZED capital of $24,490,000 is represented by com-
panies whose incorporation was reported to The Mone-
tary Tiiih-s during the week ended April 13, compared with
$13,095,900 for the previous week. A comparative summary
by provinces is as follows: —
Week ended Week ended
April 6. April 13.
Dominion .' $ 3,36.5,000 $11,670,000
Alberta 1,808,000
British Columbia 3,940,000 165,000
Manitoba 2,650,000
New Brunswick 233,000
Ontiaio 5,153,900 6,880,000
Prince Edward Island 20,000
Quebec 637,000 839,000
Saskatchewan 225,000
Totals $13,095,900 $24,490,000
The following is a list of companies recently incorporated
under Dominion charter, with the head office and authorized
capital : — •
Dorsey Tailoring Co., Ltd., Montreal, $50,000; Central
Leather Co., Ltd., Montreal, $50,000; Champagne Furs, Ltd.,
Montrerl, $.'i0,000; Eastern Stevedores, Ltd., Montreal, $50,-
000; New North West Corporation, Ltd., Ottawa, $6,775,000;
S. Soskin & Co., Ltd., Vancouver, $1,000,000; Marine Canvas
Supply Co., Ltd., Montreal, $40,000; Canadian Wire Strapping
Co., Ltd., Hamilton, $45,000; Red Star Refineries, Ltd., Mont-
real, $3,000,000; Lloyd Sales, Ltd., Montreal, $.50,000; Mer-
chants Discount Association, Ltd., Toronto, $40,000; St.
ThoniM Metal Signs, Ltd., St. Thomas, $100,000; Midnight
Sun Oil and Refining Co., Ltd., Edmonton, $5,000; Wattman
Car Bodies, Ltd., Toronto, $50,000; Lucknow Table Co. (Pri-
vate), Ltd., Lucknow, $125,000; Joseph Livshitz and Co., Ltd.,
Montreal, $50,000; Woollens and Yarns, Ltd., Montreal, $50,-
000; Robinson Motor Car Co., Ltd., Montreal, $50,000; Cana-
dian Leather Preservative and Oil Co., Ltd., Windsor, $40,-
000; J;-..mes K. Cornwall Syndicate, Ltd., Vancouver, $50,000.
Provincial Charters
The following is a list of companies recently incorporated
under provincial charter, with head office and authorized
capital: —
Alberta.— H. E. Calkin, Ltd., Royeroft, $20,000; Daysland
Agricultural Society, Ltd., Daysland, $20,000; Delany's Meat
Co., Ltd., Lethbridge, $18,000; Somerville Co., Ltd., Calg&ry,
$20,000; Ideal Bakery, Ltd., Edmonton, $20,000; Peppers (Ed-
monton), Ltd., Edmonton, $20,000; Luscar Collieries, Ltd., Ed-
monton, $1,000,000; Smith's Wholesale, Ltd., Wetaskiwin,
$20,000; Lowry Store, Ltd., Camrose, $50,000; Tongue Creek
Oilfields, Ltd., Calgary, $500,000; Royal Drug Co., Ltd., Ed-
monton, $20,000; Donkin-Stevens, Ltd., Edmonton, $20,000;
United Manufacturing Co., Ltd., Calgary, $10,000; Arthur
Gervais, Ltd., Morinville, $20,000; Donnelly Mercantile Co.,
Ltd., Donnelly, $20,000; Bow River Farm and Ranch Co.,
Ltd., C&lgary, $10,000; Nanton Garage and Machine Shop,
Ltd., Nanton, $20,000.
British Columbia. — Mack Battery Service Co., Ltd., Van-
couver, $50,000; Shuswap Saw Mills, Ltd., Enderby, $25,000;
George Rowclifl'e, Ltd., Kelownn, $20,000; Smith and Bryson,
Ltd., Pavilion, $25,000; Capital Garage, Ltd., Victoria, $10,000;
Penticton Curling Association, Ltd., Penticton, $25,000; Celtic
Club, Ltd., Victoria, $10,000.
Manitoba.— Oa.k Tire and Rubber Co. (Western), Ltd.,
Winnipeg, $20,000; Picardy Candy Shop, Winnipeg, $500,000;
Equitable Insurance Agency, Ltd., Winnipeg, $50,000; Wig-
gins Systems, Ltd., Winnipeg, $60,000; Prairie Cold Storage
Corp., Ltd., Winnipeg, $2,000,000; J. R. May and Co., Win-
nipeg, $20,000.
New Brunswick.— Labor Temple, Ltd., Moncton, $99,000;
Central Insurance Agency, Ltd., Moncton, $5,000; Investor's,
Ltd., St. John, $99,000; Grimmer Settlers Co., Ltd., St.
Quentin, $30,000.
Ontario. — Dominion Combing Mills, Ltd., Toronto, $2,500,-
000; Roofing Homes Co., Ltd., Toronto, $40,000; Sterling
Woollens and Silk Co., Ltd!, Toronto, $40,000; Empire Pub-
lications, Ltd., Toronto, $750,000; Ridley Estates, Ltd., Tor-
onto, $200,000; Home Burial Co., Ltd., Toronto, $.500,000;
Ontario Finf.nce Co., Ltd., London, $40,000; McGlashan,
Clarke Co., Ltd., Niagara Falls, $600,000; Symons Construc-
tion Co., Ltd., Toronto, $:500,000; Vimy Hospital, Ltd., Ottawa,
$50,000; Milton Arena, Ltd., Milton, $40,000; W. J. Skinner,
Ltd., Forest, $40,000; Dominion Publishing Co., Ltd., Toronto,
$10,000; Car Owners Garage Co., Ltd., London, $1,000,000;
Deco Metal Products, Ltd., Toronto, $350,000; .John Ritchie,
Ltd., Toronto, $40,000; Ritchie and Smith, Ltd., Toronto,
$100,000; Tuscany Children's Hat Co., Ltd., Toronto, $40,000;
Hamilton Properties, Ltd., Hamilton, $100,000; Raphael Mack
Co., Ltd., Hamilton, $100,000; McLennan Chemical Co., Ltd.,
Windsor, $40,000.
Prince Edward Island. — Wedlock and Co., Ltd., Morell,
$20,000.
Quebec— Lamy Realty Co., Ltd., Montreal, $500,000; Ex-
celsior Business College for Young Women of Montreal,
Montreal, $100,000; Battery and Electric Service Co., Mont-
real, $50,000; Linotypers and Stereotypers, Ltd., Montreal,
$20,000; Alex's Gara.ge, Ltd., Montreal, $20,000; Diamond
Engine, Ltd., Quebec, $149,000.
Saskatchewan. — Saskatoon Producers Milk Co., Ltd.,
Saskatoon, $200,000; Western Traders, Ltd., North Battle-
ford, $20,000; Standard Hardware Co., Ltd., Zelma, $5,000.
INSURANCE LICENSES AND AGENCY NOTES
License has been issued to the Sterling Fire Insurance
Co. of Indiana, U.S.A., authorizing the transaction in Can-
ada of hail and automobile insurance, in addition to the
classes for which it is already licensed.
Two licenses have also been issued by the Dominion
Insurance Department, authorizing two companies to trans-
act life insurance as fraternal societies. These licenses
have been given to the Supi'eme Lodge Knights of Pythias
and the Western Mutual Life Association, and replace those
issued in 1920.
Alex. Robertson, who has been with the Liverpool and
London and Globe Insurance Co. at the head office for Can-
ada, Montreal, for the past twelve years, has resigned his
position with that company and has become associated with
the fire branch of the Motor Union Insurance Co., Ltd.,
Toronto.
Hilary Watts has been appointed district manager of
the North American Life Assurance Co., with headquarters
at Brantford, Ont. He succeeds F. J. Reid, who has resigned
from that position, but who will still continue to represent
the company in Brantford. J. M. Cote has been appointed
district manager of the company for Quebec City and
vicinity, succeeding J. B. Morissette, who will still continue
to represent the company in that city.
At the beginning of 1920 the Spanish River Pulp and
Paper Co., Ltd., insured all of its employees with the Metro-
politan Life Insurance Co. under the group plan. Since that
time 'ten of the employees have died, and death claims
totalling $12,250 have been settled. Settlement of these
claims took place within six to eight days after the neces-
sary papers were submitted.
The Canada Life Assurance Co. has been awarded a
group insurance contract by the city of Calgary, Alta. Civic
employees wll be required to pay 60 per cent, of the
premiums. Firemen, policemen, and linemen of the electric
light department will receive free accident and sickness in-
surance from the city owing to the dangerous nature of their
position.
April 15, 1921
THE MONETARY TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto ' ' Solid as the Continent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID .\S THE CONTINENT"
HEAD OFFICE
TORONTO
Important Features of the Ninth Annual Report
WESTERN LIFE ASSURANCE CO.
HEAD OFFICE WINNIPEG. MAN.
Assurances, New and Revived 51,308,750.00
,70.S.25
1,907.3.5
1,286.67
,969.00
1.667.36
,306.04
Premiums on same ....
Assurances in Force .
Total Premium lucoine
Policy Keserves
Admitted Assets
Average Policy
Premium per SI ,000 Insurance — Collected in
Cash 30.30
For particulars of a good agency apply to
ADAM REID. Managing Director WINNIPEG
44,
4.233,!
291,
358.(
2,3
The Mutual of Canada Day by Day
During the sear 19^0 the average payments in benefit of different kinds
to hcncHciaries and policyholders amounted to $11,500 for every
working day throughout the year, a total of $3,492.8:40. Kvery year
the payments huvc increased, the total made since the establishment of
the company being over thirty-three millions. The funds in hand to
guarantee future payments amount to forty-two millions so that the
company has either paid or holds in trust more than S75.000.000. This
total exceeds the premium income by eight millions. These figures show
that the Mutual Life of Canada is making good on all contracts entered
into in past years. It is not only "making good." it is " making better."
for the profits alone actually paid during the years since establishment
amount to eight millions of dollars, a record of economy and service of
which any life office might justly be proud.
The Mutual Life Assurance Co. of Canada
Waterloo Ontario
"For the man of vision."
Policies which may be adjusted to meet changed cir-
cumstances The " Canadian ' Series issued only by
The London Life Insurance Co.
HEAD OFFICE
LONDON. CANADA
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cable .\dilress. Topeco. Western Un. and .4. B.C.. 5th Edition
CALGARY, CANADA
SEND A POSTAL
for a copy of The Great-West Report for 1920.
Prudent men see the necessity for Life Insurance. And
they see the need for choosing that Insurance with the utmost
care.
Your choice will be simplified by reading the above
Report. No clearer proof could be given of the value of
The Great- West Policies.
For fourteen successive year.-, the Company has held the distinction of
wrilinK the largest paid-for Canadian Business of all Canadian Companies-
showing the wide approval of the Great-West Policies, High interest
earnings, low expense rales and a favourable mortality continue to be out-
standing features, and lead to high returns to Policyholdei s.
THE GREAT-WEST LIFE ASSURANCE COMPANY
HEAD OFFICE
WINNIPEG
The Western Empire
Life Assurance Company
Head OiHce : 701 Somerset Building, Winnipeg, Man.
SASKATOON
EDMONTON
VANCOUVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office for Canada, Hamilton, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NORMA.N S. JONES. Manager R. J. M AHONV. Asst M.inager
Guardian Assurance Company
Limited, of London, England Kstablisiied i82i
C.ipital .Subscribed §10,000,000
Capital Paid-up 8 .5,000,000
Total Investmeuts E-xceed 540,000,000
Head Office for Canada, Guardian Building, Montreal
H. M. I.AMUHUT. -Man-..;cr. B. I-. HAkOS. As..;im:im \l:m:iKei-.
ARMSTRONG & DeWITT, Limited, General Agents
36 TORONTO STREET. TORONTO
32
THE MONETARY TIMES
Volume (jt>
News of Municipal Finance
Aid to Defaulting Towns is Discussed by Provincial Governments— Saskatchewan and
Quebec Are Opposed to Assumption of Obligations, While Alberta and Manitoba Favor
Such Action— South Vancouver Ratepayers Will Once Again Have an Opportunity to
Exercise Their Franchise-Toronto, Moose Jaw and Fort William Tax Rates are Higher
FJLLOWING the announcement by the Saskatchewan gov-
ernment that "it will not be driven into assuming obli-
gations for their liabilities," diverse opinions have been ex-
pressed as to the expediency of such action. On the one
hand, there is the fact that the credit of the whole province
may be affected by the defaulting of a few municipalities,
while on the other there is the belief that the acceptance by
the province of municipal obligations will establish a pre-
cedent which will lessen the responsibility of the munici-
palities.
The premier of the province of Quebec has introduced a
new point, however, in refusing to comply with & suggestion
that his government pay the interest on the bonds of three
small municipalities on the Island of Montreal, that had gone
back in the payment of their interest. He emphasized a
fundamental principle of municipal government when he in-
sisted that each municipality must carry its own debt, with-
out r,.:d fi'om the province, otherwise the credit of the province
itself would be adversely affected, and consequently the credit
of all within the pi-ovince.
He inferred that the very essence of government is re-
sponsibility— whether it be federal, provincial or municipal —
and the tendency of smaller municipalities, located near in-
dustrial centres, or cities, to take undue chances in extensive
improvements, is not only dangerous in itself, but atosolutely
against the idea of autonomous democracy. Such a policy is
even dishonest inasmuch as municipal debts are incurred out
of all proportion to the taxable value of the community, and
the fact that most of these extravagant improvements are
made at the request of local real estate owners and specula-
tors, because of the enhanced and fictitious values such im-
provements give their holdings, does not excuse any council
making them.
Alberta Favors the Other Side
This substantiates the view taken by the province of
Saskatchewan, but there are two provinces which are partial
to the other side of the question. Hon. C. R. Mitchell, treas-
urer of -Alberta, has introduced a bill in the provincial legis-
lature, providing that the province could, after appointing
an administrator, advance certain sums of money necessary
to maintain the administration. This action, said the minis-
ter, would only be taken in extreme cases. Athabasca was
taken as an example of an extreme case. It w&s stated to
the government that in 1922 the "town would own the whole
town." Premier Stewart supported the minister of finance,
and stated that the small amount of money necessary for
the purpose proposed would be nothing compared with that
which would be lost if the general credit suffered. The
government was not unanimous on this point, however. It
was stated that such legislation was dangerous, and that
the province would have a lot of the municipalities throwing
up their hands and asking the province to step in. But the
premier said that he did not think many municipalities would
la.y down, because they would find themselves under very
stern administration. The province, he indicated, would be
"almost merciless in the collection of taxes."
The province of Manitoba is also inclined to take this
view. A Toronto bond house has received a letter from
Winnipeg which states that there is absolutely no intention
on the part of the present government to allow such condi-
tions as prevail in certain def&alting municipalites to occur
there. With particular reference to Transcona, the position
of which town was outlined in these columns recently, the
latter goes on to say: "The administrator, Mr. Campbell,
who has been the backbone of the town of late ye&rs, has
been appointed under direct supervision of the municipal com-
missioner, E. M. Wood, and it is the intention of the govern-
ment to see that outstanding liabilities of the town are paid
promptly. This certainly applies as far as interest payments
are concerned. In this connection there have been recent
Miiendments proposed to the Treasury Act of Manitoba which
will give the treasury department a fund of $1,000,000 a-t their
disposition, to be used for assisting over the stile any de-
faulting municipality."
South Vancouver, B.C. — After having been in the hands
of the province for nearly three years, the municipality will
shortly be governed by a reeve and a council, as formerly.
Sarnia, Ont. — The city council has fixed the tax rate at
39 mills on the dollar, as compared with 36 mills for 1920.
Haileybury, Ont.— The tax rate for 1921 will be 48 mills
for public school supporters and 58 mills for separate school
suppoi'ters.
Preston, Ont A tax rate of 39 mills on the dollar has
been struck by the town council. This compares with 34
mills two years ago.
Fort William, Ont. — A tax r&te of 39 mills has been
adopted by the council for 1921. This compares with 36 mills
in 1920.
Camrose. Alta. — A falling off in collections is reported
by the municipality, the amount last year being only 75.2 per
cent., of current taxes, as compared with 80.3 per cent., in
the previous year.
Moose Jaw, Sask — Public school supporters will have to
pay £• tax rate of 46 mills on the dollar this year, as com-
pared with 41.60 mills in 1920, while separate school sup-
porters will be required to pay 52 mills on the dollars, as
compared with 49.30 last year.
Guelph, Ont. — According to figures submitted by the
Ontario Hydro-Electric Commission, the city is the first
municipality on the hydro system in Ontario to be entirely
out of debt. The total investment £-nd responsibility of the
city is $1,185,501. Guelph was one of the twelve "originals"
in the hydro project.
Ontario to be entirely out of debt. The total investment and
responsibility of the city is $1,185,501. Guelph was one of
the twelve "originals" in the hydro project.
Toronto, Ont. — X tax rate of 33 mills on the dollar, as
comp&red with 30 y2 mills last year, has been struck by the
council. Separate school supporters will have to pay a rate
of 37 mills. The amount of taxes to be paid by public school
supporters will be $21,672,323 and by the separate school sup-
porters $2,832,209. In addition the city receives $10 874,204
from revenue other -than taxation.
Edmonton, Alta. — Revision of civic utility rates has been
recommended by the city commissioners to the council and
it is probable that the new tariff will be brought into foice,
with, pei-haps, slight change from the original proposals.
Street railway, telephones, lighting and water departments
all come under this consideration. Commissioner Yorath
stated that the proposed rates would avera^ge well up with
what were in force in other western cities, and urged that
the broader question of civic finances be looked at, and that
cash revenue be considered as essential.
"Municipal and Real Estate Finance in Canada" is the
title of a pamphlet just issued by the Commission of Con-
servation, Ottawa. The author is Thomas Adams, town
planning adviser to the Commission.
April 15, 1921
THE MONETARY TIMES
C.P.R. BUILDING
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Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
Foreign Exchange
The Foreign Exchange Situation has created one of
the most attractive speculative investment opportu-
nities ever offered to the investing public, and
provides very substantial profit-making assurances
until the ultimate restoration of the Gold Standard
for European Exchange is reached.
Tor quotations of Foreign Government Bonds, and
further particulars, apply to
R. M. HEFFERNAN & CO., Ltd.
204 Jackson Building, Ottawa, Ont.
THE MONETARY TIMES
Volume 66
Government and Municipal Bond Market
Alberta is Calling for Tenders on Two Million Issue — Victory Loan Prices Were
Firmer — Lethbridge Northern Bill is Favored by Provincial Legislature —
Interest Rate May be Reduced — St. John Bonds Sold On 6.20 Per Cent. Basis
QUIETNESS was a.gain in evidence in the government and
municipal bond market during the past week. The lull
is just a temporary one, however, for our provinces and
municipalities still have large financial programs ahead of
them. Alberta is calling for tenders on an issue of bonds,
which are made payable in Canada only. The provincial
legislature has also been asked to provide a sum of about
$9,000,000 for capital expenditure, which is to be devoted to
construction of telephones and improvement of railways
under provincial jurisdiction. The action of the provincial
government with regard to the guaranteeing of bonds of
organized irrigation and drainage districts, may likewise
bring out a number of such issues.
The Lethbridge Northern bill has been introduced and
h&s met with the favor of both government and opposition.
The bill sets out chiefly that the province shall guarantee
the principal and interest on the total issue of bonds amount-
ing to $5,400,000. It centralizes authority and power in
the irrigation council of the government, which means that
the government will have full control of selling the bonds,
arranging the finances and marking and carrying out the
contracts. In this case an advantageous offer could be
received for the securities if the interest rate was lowered
to 6 per cent., from the original rate of 7 per cent. The
trustees of the district are considering this, and in all prob-
ability a new by-la-w will have to be prepared and submitted
to vote.
Announcement by the minister of finance that the gov-
ernment had disposed of $19,719,250 of 1924 and 1934 Vic-
tory bonds since the special committee ceased operations
last November, was a surprise to all those who had not par-
ticipated, for the market had not registered such a move-
ment. With the exception of 1923's and ig34's, Victory loans
tended to firm up during this week. This is illustrated by
the following figures : —
Control
price.
1922 98
1927 97
1937 98
1923 98
1933 961/2
1924 97
1934 93
Last week.
High. Low.
98% 98
97%
99%
981/8
98
96%
This week.
High. Low.
97
98%
97
97
96
94%
98%
981/8
991/2
98
98
96%
941/2
98%
97 y2
99
96%
97%
96
9414
Coining Offerings
The following is a list of debentures offered
pa-rticulars of which have been given in this or
issues: —
Borrower. Amount. Rate '/c . Maturity.
Nokomis, Sask $ 20,000 8 15-instal.
WhitemouthR.M.,Man. 25,000 6 30-instal.
Acton, Ont 18,000 6% 30-instal.
Ste.-Marie-de-Sayabec,
Que 11,600 . . 20-years
Vermillion, Alta 27,000 6I2&7 20-instai.
Alberta 2,000,000 (i 15-years
Niagara Falls, Ont. . 250,000 5 30-instal.
Minto Tp., Ont 4,000 6 10-instal.
Walkerville, Ont., . . . 95,982.35 6 Various
St. Boniface, Man. . . 273,233 5 & 6 Various
Miniota R.M., Man. . 83,500 51,2 Various
Regina, Sask 154,010 6&6V2 Various
Rockwood R.M., Man. 70,000 6 30-instal.
Peace River.. Alta. . . 10,000 6 5-instal.
Sturgeon PaJls, Ont. 126,500 6 20 & 30-years
for sale,
previous
Tenders
close.
Apr.
16
Apr.
16
Apr.
18
Apr.
18
Apr.
18
Apr.
18
Apr.
18
Apr.
21
Apr.
25
Apr.
25
Apr.
25
Apr.
28
Niagara Falls, Ont. — Tenders will be received until
April 18, 1921, for the purchase of $250,000 5 per cent. 30-
instalment sewer debentures. W. J. McMurray, treasurer.
Minto Township, Ont. — Tenders will be received until
April 18, 1921, for the purchase of $4,000 6 per cent. 10-in-
stalment school debentures. Robert Holtom, Clifford, Ont.
Sturgeon Falls, Ont. — The town is offering for saJe
$35,000 6 per cent. 20-year sidewalk debentures and $91,500
6 per cent. 30-year sewsr debentures. L. R. Vannier, town
treasurer.
Alberta. — Tenders will be received until April 18, 1921,
for the purchase of $2,000,000 6 per cent. 15-year bonds,
payable in Canada only. (See advertisement elsewhere in
this issue.)
Acton, Ont. — Tenders will be received until noon, April
16,1921, for the purchase of $18,000 61/2 per cent. 30-instal-
ment waterworks debentures. Advertisement was given in
these columns last week.
Regina, Sask. — Tenders will be received until April 25,
1921, for the purchase of $154,010 6 and eVg per cent, deben-
tuiies of various maturities. (See advertisement elsewhere
in this issue.)
Walkerville, Ont. — Tenders will be received until April
21, 1921, for the purchase of $60,982.35 6 per cent. 10-instal-
ment debentures and $35,000 6 per cent. 20-instalment deben-
tures. (See advertisement elsewhere in this issue.)
Miniota R.M., Man. — Time for i-eceiving tenders which
formerly closed on April 15 has been extended to April 25,
1921. The securities for sale are: .$80,000 5y2 per cent. 30-
instalment for good roads; $3,500 5% per cent. 20-years for
telephones. Principal and interest are guaranteed by the
province of Manitoba. W. E. Warren, secretary-treasurer.
Whitemouth R.M., Man. — Tenders will be received until
April 16, 1921, noon, for the purchase of $25,000 6 per cent.
30-instalment debentures, the proceeds of which will be used
for bridges, roads and culverts. The municipality has no
previous debenture debt. Chas. Pound, secretary-treasurer,
Whitemouth. This is the same issue which was offered in
March, when all tenders were rejected.
Debenture Notes
Glace Bay, N.S. — ^The school board desires to raise
$205,230.
Lethbridge, Alta. — Ratepayers have authorized the rais-
ing of $160,483 for various local improvements.
Wolfville, N.S. — The municipality will apply for powers
to borrow $44,500 for schools and other local improvements.
Outremont, Que. — The city council is considering the
issue of $750,000 5% per cent. 30-year debentures, for various
local improvements.
Southampton, Ont. — Ratepayers have authorized the
guaranteeing of the bonds of Panels, Ltd., a local manufac-
turing company, to the extent of $20,000.
Gait, Ont. — Ratepayers have authorized the borrowing
of $25,000 for purchase and equipment of stone quarries,
and have defeated a by-law for the same amount for im-
provements to the city hall.
Saskatchewan. — The following is a list of debentures
authorized by the Local Government Board from March 26
to April 2, 1921:—
Schools. — Gallinger, $2,000 8 per cent. lO-instalment;
Greystone, $2,000 8 per cent. 10-years annuity; Stratford,
$2,500 8 per cent. 10-instalment; Orel, $500 8 per cent. 10-
years annuity; White Eagle, $1,000 8 per cent. 10-instalment;
North Melville, $4,000 8 per cent. 15-years annuity; Abbey,
$2,000 8 per cent. 20-years annuity.
Village of Prelate, $950 8 per cent. 7-instalment, for
sidewalks.
April 15, 1921
THE MONETARY TIMES
Two
Attractive Investments
are offered in the following bonds :
City of Toronto
6% Bonds, due Isl March, 1928-40, yielding 6%
City of Winnipeg
6% Bonds, due 13th Feb.. 1941, yielding 6.05
OrJers for an]} amount ma}f be voircd or telephoned
at our expense. IVrite for our list of offeringi.
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
mmammmmm
f^
MKVESTHtMT- S£RY1k\^
35
.'>.»^^^.-»^JW.JWil|
In Eight
Financial Centres
We maintain thoroughly equipped offices for
the purchase, sale and exchange of Govern-
ment, Municipal and Corporation Bonds.
These offices are at Montreal, Toronto, HaM-
fax, St. John, Winnipeg, Vancouver, Newr
York, and London, England.
W^e solicit inquiries from investors who have
bonds and stocks to sell, or from those who
wish to buy or exchange. Orders accurately
and efficiently executed.
If you wish to read a stimulating review ol
current business conditions, write and ask us
to mail you this month's Investment Items.
Royal Securities
^ 'corporation
L. I
TORONTO
WINNIPEG
M 1 T E D
MONTREAL
HALIFAX ST. JOHN. N.B.
VANCOUVER NEW YORK
LONDON. Ens.
■»N5'->5^~^--5^^^ ■V'r/-^Z^T^Tr^'^/^^'^^^9^^Z^'^f^^9^^f^^'''^^^^'^^^^''-^'
\V. L. McKINNON
I)i:a.\ h. i>i-:ttks
We Buy and Sell
VICTORY BONDS
at Current Prices
W^. L. McKINNON & CO.
Government and Municipal Bonds
McKINNON BUILDING -:• TORONTO
Telephone Adelaide 3870
Increase the Return
on Your Investments
Send foi our circular describing
Howard Smith Paper Mills
Bonds, rvhich are being offered
at a verv attractive price
R. A. Daly & Co.
BANK OF TORONTO BUILDING
TORONTO
Bonds Payable
in New York
Province of Ontario
4%
March, 1926
Province of B.C.
4i%
December, 1925
Province of B.C.
5%
March, 1939
Province of B.C.
5%
July, 1930
Winnipeg Water District
5%
February, 1923
City of London, Ontario
e-;,
March, 1923
City of Lethbridge
5':';
July, 1945
Prices on
applica
ion
W. A. MACKENZIE & CO., Limited
Covcrnmenf and .Municipal Bonds.
Corporation Securities
42 KING STREET WEST
TORONTO - CANADA
36
THE MONETARY TIMES
Kegina, Sask. — City commissioners have been autliorized
to call for bids on an issue of $100,000 local improvement
debentures.
Toronto, Ont. — The board of control has decided to re-
commend to the city council that a by-law be introduced
and passed authorizing the issue of debentures for $10,000,-
000 for street railway purposes.
Kamloops, B.C. — The municipal department of the pro-
vince has issued a certificate of authorization to the muni-
cipality to raise $o5,000 for school purposes by 7 per cent.
20-year debentures.
Verdun, Que. — The Central Catholic School Board has
ref tised the local commissioners authority to borrow $175,000.
It was pointed out that the school tax in Verdun was al-
ready much heavier th&n in Montreal, and would be further
increased if this borrowing power were granted.
Victoria. B.C. — Two bids were received by the city for
securities to mature in July, 1930. It will be remembered
that tenders were called on $244,.501.81 6 per cent., treasury
certificates, maturing from 1921-30 and from 1921-35. Hous-
ser. Wood and Co., of Toronto, agreed to purchase at 92.67
treasury certificates to the amount of $200,000, with interest
payable in semi-annual instalments by coupon. The Canada
Bond Corp., and Harris, Read and Co., bid a fraction less
on $50,000 worth of the certificates, their price being- 92.66.
Bond Sales
Aurora, Ont. — J. M. Walton, a local bond dealer, has
bought the town's issue of $27,060 51/2 per cent. 20-instal-
ment debentures at a price of 93.97, which is on about a
6.27 per cent, basis. The following tenders were received : —
J. M. Walton 93.97
Harris, Forbes & Co., Inc 93.38
Turner, Spragge & Co 93.37
Dyment, Anderson & Co. 92.78
Morrow & Jellett 92.78
A. E. Ames & Co 92.33
United Financial Corp., Ltd 92.37
R. C. Matthews & Co 92.30
W. L. McKinnon & Co 92.23
Imperial Bank of Canada 92.08
T. S. G. Pepler & Co 92.04
Macneill, Graham & Co 92.036
A. Jarvis & Co 92.03
Wood, Gundy &) Co 91.37
McLeod, Young, Weir & Co 91.26
C. R. Clapp & Co 91.25
Saskatchewan. — The following is a list of sales reported
by the Local Government Board from March 26 to April
2, 1921:—
8 per cent. 10-year Schools — Kochmstedt,' $700, Harp-
tree, $3,000, Nut Mountain, $1,500; to Nay and James. Wil-
lowmoor, $1,000, Lanville, $1,000, Harvest, $1,000, Proswita,
$1,500, Belleau Brook, $2,000; to C. C. Cross and Co. Rock-
wood, $3,200, Old Traiil, $2,000; to the Regina Public School
Sinking Fund. Gibson Creek, $2,000; to Waterman-Water-
bury Co. Cupar, $3,000; to Harris, Read and Co. An issue
of $600 Mountain Lake 8 per cent. 4-year debentures has
been sold to J. S. Wien, Langham.
Rural Telephones. — 8 per cent. 15-years — Bow Valley,
$2,500, Reford. $1,450, Bonnie View, $1,000, Torondal, $2,000;
C. C. Cross and Co. Northwood, $12,200; Harris, Read
and Co.
Rural Municipalities. — Fertile Valley, $5,050 10-years
8 per cent., Sasman, $5,250 20-years 8 per cent.; H&rris,
Read and Co.
Town of Gravelbourg, $6,000 30-years 7 per cent.; C.
N. McManus, Moose Jaw.
St. John, N.B. — A syndicate of four local dealers has
purchased $100,000 of city and county of St. John 6 per cent,
bonds due January 1, 1931, at 98^2 and accrued interest,
which is on about a 6.20 per cent, basis. The bonds were
issued for hospit&l purposes.
Burlington, Ont. — An issue of $48,403.77 6 per cent,
debentures, maturing in 15 and 30 instalments, has been
awarded to the United Financial Corp., Ltd., at 95.78, which
is on about a 6.42 per cent, basis. The following tenders
were received : —
United Financial Corp., Ltd 95.78
Dominion Securities Corp 94.938
R. C. Matthews & Co 94.68
C. H. Burgess & Co 94.62
A. E. Ames & Co 94.29
Wood, Gundy & Co 94.21
McLeod, Young, Weir & Co 94.09
Zimmerman & Mallach 93.89
Carleton County, Ont. — R. C. Matthews and Co. have
purchased $235,000 6 per cent, debentures at a price of
97.937. The securities are payable as follows: $100,000
twenty-instalments; $85,000 twenty-instalments; $50,000 five-
instalments. At this rate the municipality pays about 6.30
per cent, for its money.
INTRICACIES OF THE INCOME TAX
Government Now a Silent Partner in Industry — Accounts
Must Show Results as Required for Assessment
IF PROOF were required of the difficulties met by taxpayers
in calculating their obligations to the Dominion govern-
ment, the number of pamphlets issued by institutions and
individuals for the purpose of making clear the provisions of
the Income Tax Act would be sufficient. Some of them, like
that issued by the Royal Bank, are exhaustive, showing all the
details required. A smaller one which deals rather with a few
points on which taxpayei-s are liable to go wrong was recently
issued for free distribution by David Cooper, C.A., of David
Cooper & Co., Winnipeg and Brandon, will also be found use-
ful. It shows the rates for 1917 to 1920 for corporations and
for individuals, and under the heading "Things to Remember"
sets forth the penalties, etc. In his comments Mr. Cooper
says : —
"The new tax laws have caught business quite unpre-
pared. This is due almost wholly to the difficulty experienced
in properly interpreting these laws. That this difficulty is not
confined to a few is evidenced by the following extract from a
newspaper: 'Taxpayers need not feel chagrined because they
cannot figure out their income tax. The men who formed and
passed the laws are in the same fix; ... they all need
help in preparing their own tax returns.'
"The tax laws, formulated to provide the government with
enough money to meet operating expenses, interest on the
national debt, and help repay the principal borrowed for war
purposes, are of necessity very complex, and to many, very
confusing. In foiTnulating these tax laws there were many
conditions to bear in mind.
"In the first place the laws had to be as just as w-as possi-
ble, and in the second place they had to be simple and under-
standable. In order to have the laws fair and just, simplicity
in some cases had to be sacrificed. The' fact that the laws as
they now exist are complex accounts for the very small per-
centage (not even five percent.) of business men familiar with
the operation of the acts, or the proper procedure to be fol-
lowed. This is true even after the statutes have been given
careful study.
"The government is now the silent partner in every business.
Regulations have been laid down, and these must be obeyed
to the letter. Many individuals and corporations have already
been prosecuted for failure to comply with the provisions of the
Income Tax Act, and from newspaper announcements many
more prosecutions are pending. Penalties of thousands of dol-
lars have already been imposed, and from now on the depart-
ment of taxation will have little sympathy to waste on those
who do not keep proper records and who fail to make accurate
returns of their taxable income. Business and professional
men are at last alive to the fact that their tax problems are not
.best handled by the usual spring rush, when the forms are
available."
April 15, 1921
THE MONETARY TIMES
$25,000
CITY
OF HALIFAX,
5} 2% BONDS
N.S.
Due Julx, hi, 1
953 Denomina
iom, $1,000
Pri.
abl
icipal and semi-annual interest pay
B at Toronto. Montreal, Halifax
Price
: 92.85 and accrued interest |
Eastern
YIELDING G%
Limited
Securities Company,
ST. JOHN,
N.B. HALIFAX, N.S. 1
Investment
Information
Our latest folder is a useful
guide to the investor in
Government and Municipal
Bonds. Write for it.
BOND DEPARTMENT
The Canada Trust Coi*vR\NY
14 King St. E. - - - Toronto
The
Trustee Company of Winnipeg
322 MAIN STREET
Ltd.
M. J. A. M.
DB
LA GlCLAIt
, Man.ii!ing Director.
Sec us for investments in allocated o
rates of interest.
Our Agency Department is very ac
your affairs in our charge.
r guaranteed loans at attractive
ive. While out of to«n. leave
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street
C. H MACAILAV J
VANCOUVER, B.C.
.N'ICOLLS. Notary Public
w
E have 450 good businesses for sale in the central
portion of Alberta. Everything from a General
Store to a small Confectionery
If you v^ant a business in Alberta you want us.
WHYTE & CO., LIMITED
111 Pantago Building
Edmonton. Alberta
X
Waghorn Gwynn & Co., Limited
Stock and Bond Brokers
\' inancial
insurance, and Real Estate Agents
VANCOUVER
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches-SASKATOON AND CAU'.AKY.
Canadian Managers
Invfstment Corporation or Canada. Ltd.
London OHice : 4 Great Winchester St.. EC.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
LOUGHEED & TAYLOR, Limited
INVESTMENT SECURITIES
210 Eighth Avenue West
CALGARY
ALBERTA
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. .1. W. MAHA.\ I. A. WF.STMAN
iident
.Managing Director
iiiigiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiH
I BOND ISSUES I
I SHOULD HAVE MORE THAN |
I LOCAL ADVERTISING |
M Reach the important investment deal- J
B ers throughout Canada and the United S
B States, by inviting tenders to purchase H
■ through H
I THE MONETARY TIMES |
m OF CANADA i
B The rate for this class of advertising is m
M very moderate when the character of m
m our clientele is taken into account. ■
B Let us be the connecting link between ■
B your municipality and the principal J
B individual and institutional bond g
B buyers throughout Canada and the ■
I United States. |
I The Monetary Times of Canada |
1 TORONTO WINNIPEG g
liiiiiiiiiiiiiniiiyiiiiiiiiiiiiaiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiu^^^
THE MONETARY TIMES
Volume 66
CORPORATION SECURITIES MARKET
Canadian Stocks Continue Uncertain Trend — Brompton
OITerinK Will be Made tliis Month— Laurentian Power
Issue— New Windsor Hotel Stock Being Sold
FOR three months trading on the Canadian stock exchanges
has been influenced by uncertain and apprehensive senti-
ment, which resulted from the condition of general business,
and still the chances for a change seem as far away as ever.
Paring the past week events which occurred both here and
abroad were not particularly encouraging, although there
were some points which were not altogether unfavorable.
The issuance of the annual report of the Consolidated
Mining and Smelting Co.'s report merely confirmed antici-
pations, while the passing of the dividend was no more than
expected. Such happenings, however, usually cast a slur
upon the market. Consolidated Smelters is perhaps the only
mining enterjirise, in its class, in America to-da>' that has
not followed its great associates in the United States in clos-
ing down its mines. It is still in opei-ation, and from weekly
reports from the company its properties are still shipping
the usual weekly quota to the smelter.
Trading for the week resulted in the turnover of listed
stocks on the Montreal exchange of 37,453 shares, as com-
pared with 29,927 in the previous week, while in Toronto the
figure was 13,061, compared with 14,974. Bonds changed
hands to the extent of $1,120,248 in Montreal, as against
$1,124,200. while the turnover in Toronto v/as $862,600, com-
pared with $804,800 previously.
Towards the end of this month, Greenshields and Co.
and Hanson Bros., will bring out an issue of Brompton Pulp
and Paper Co.'s bonds. Full details are not yet available,
but it is undei-stood that the amount of the offering to the
public will be $1,-500,000, for about $1,000,000 of the $2,-
500,000 authorized has been taken for investment by the
directors.
Bond Issues
At an early date, J. C. Mackintosh and Co., Halifax,
members of the Montreal Stock Exchange, will offer to the
public the unsold balance of $1,000,000 6 per cent, first re-
funding mortgage 20-year bonds of the Laurentian Power
Co., Ltd., maturing January 1, 1936, at a price of 88V2, to
yield the investor 7% per cent. These securities are payable
both as to principal and interest in New York or Canada,
at the option of the holder. In view of this the premium
arriving from payment of interest in New York funds would
increase the yield to more than 8 per cent.
The Laurentian Power Co. is the chief supply of the
Quebec Railway, Light and Power Co., on which the city
ot Quebec is dependent for its principal utilities.
An issue of $50,000 of 8 per cent, bonds of the Canadian
Apartment Co. is being made. The bonds are secured by a
mortgage on the Westminster apartments on Morris Street,
Halifax, N.S. The construction is of a solid character and
provides 50 self-contained apartments. The prospectus says
the building and equipment have cost $230,000, which has
been financed so far by a mortgage loan from the Eastern
Trust Co. for $90,000 and the sale of $84,000 of stock at
par less commissions. The balance is to be paid from pro-
ceeds of the present issue of 8 per cent, bonds.
Holders of 6 per cent., debenture stock of the Canada
Land and Irrigation Co., Ltd., unanimously consented to
the creation of 300,000 7 per cent., prior lien debenture
stock, and according to word received at the Medicine Hat
office of the company, the issue has been successfully sub-
scribed, and arrangements are being made to proceed with
the construction program. The stock is to be redeemable
in 1929 and 1933 at a premium of 100 per cent.
Windsor Hotel Stock Offering
B. N. Rosenbaum and Co., of New York and Montreal,
is ofl'ering at Windsor, Ont.. through the treasurer, E. L.
Gauthier, preferred and common stock of the New Windsor
Hotel Co., Ltd., Windsor, Ont. The capital consists of $1,-
000,000 8 per cent., cumulative sinking fund preferred stock,
shares of $100 par value, and $2,000,000 common stock,
shares of $10 par value. The preferred is offered at par
with a bonus of one share of common, while the common is
offered at $7 per share.
The proceeds of the issue will be used for the construc-
tion of a ten-storey fire-proof 307 room hotel in the city.
An agreement has been entered into between the company
and Anglin-Norcross, Ltd., contracting engineers and build-
ers, Montreal, for the erection of the hotel to begin about
May 1 of this year, so that the hotel will be in operation
about March 1, 1922, according to estimates.
Circulars have been received by the shareholders of the
North American Pulp and Paper Co. Trust informing them
that negotiations for the sale of the Trust's assets to a Lon-
don syndicate have brought a request from the syndicate as
to what number of shares will be delivered in case of pur-
chase. Shai-eholders are therefore requested to deposit with
the Guaranty Trust Co. of New York what shares they- will
dispose of for $6 cash (New York funds) so that a reply
may be made to the syndicate. Those not wishing to dispose
of their holdings are given the opportunity of changing them
for shares in the Saguenay Pulp and Power Co. at the rate
of ten shares of North American Pulp common for 2 2-5
shares of Saguenay preferred, and 8 shares of Saguenay
common.
The Montreal Stock Exchange announces that on and
after April 15th the shares of the Montreal Loan and Mort-
gage Co. and of the Montreal Telegraph Co. will be traded
in on the basis of dollars per share and the commission to
be charged will be 25 cents per share. The par value of
the Montreal Loan and Mortgage stock is $25, and of the
Montreal Telegraph stock $40. Up to the present the quota-
tions for the two stocks have been by points on the par
value of $100 basis, the former stock being last quoted at
165 and the latter at 112. On the new basis the Loan stock
would be quoted at 41^-4, and the Telegraph stock at roughly
44%. The Loan stock pays 12 per cent, with a bonus, and
the Telegraph stock 8 per cent, with a bonus. In reference
to the 25 cents per share to be charged as commission the
change is from 10 cents per share up to that now charged on
the Telegraph stock, and 6% cents on the Loan stock, the
commission being formerly charged on the amount of in-
vestment rather than on the number of shares.
UNLISTED SECURITIES
Abbey Salts
Alta. P3C. Grain.. ..com.
'* " " ....pref.
American Sales Bit. 6's.
Black Lake pref
Brandram-Henderson pf.
Brantford Roofing
British Amer. Assurance
British American Oil ..
Burns. P. 1st Mtiie. 6's..
Can. Machinery. . . . com,
6's.
Canada Mortgage
Can. Oil pref
Can. Westinghouse
Can. Woollens pref.
Cockshutt Plow .7% pref
Coll'nKwoodShipb'de.fi';
Bid
Ask
.35
130
150
78.50
85
90
15.75
89.50
93.50
90
8
11
31
32 SO
9'2.50
99 .
20
24.50
75
85
67
72
95
104
lis
58
70
58
91
61
Crown Life I
Cuban Can. Sugar.. pref.
Davies. William B's
Pom. Iron &SteelS's 1939
Dom. Power com.
pref.
Dryden Pulp
DunlopTire pref.
Eastern Theatres., .com.
Famous Players - . pref.
floodyear Tire. ...7% pfd.
Gunns. Limited pref.
Harris Abattoir 6's
Home Bank
Imperial Oil
King Edward Hotel.com.
" ..7's.
Lnew's. London. .. .com.
Loew's .Montreal - . .pref.
Manufacturers Life
Massey-Harris
Mattagami Pulp... pref.
Merchants Fire
Mexican Nor. Power. .5*s
.Morrow Screw 6's
National Life
Neilson. VVm 6's.
North American Pulp . . .
North StarOil pref.
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Riordon . . com. (new stk.)
..pref.
R, Simpson pfd.
SouthernCan.Pow.com.
..ofd.
Bid
Ask
66
170
200
94.50
BO
70
37
7
10. ,50
83
89
ISO
85
5
5.25
3.50
3.70
75
80
92
96
11
12
66
67.. 50
78
82
22
75
24
76
■it. Lawrence Sugar. .6's,
Sterling Bank
Sterling Coal com
Toronto Carpet com,
Toronto Paper 6's
Toronto Power. 5's (1924)
Trusts Guar
United Cigar Storescom
pref.
Western Assurance
WhalenPulp com
" 7% Deb,
91.50
114.50
24.50
April 15, 1921
THE MONETARY TIMES
39
We Offer
SCHOOL BONDS
Province of Alberta
Maturing 10 and 15 Years
to ukld '
I 7 to 7 U fc I
We Speciall)) Recommend these Bonds as Sound Investments
W. Ross Alger & Company
INVESTMENT BANKERS
Bank of Toronto Bldg. Royal Bank Chambers
EDMONTON CALGARY
The Bond House of British Columbia
WE ARE ;N THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
Our Service to Investors
AE)VICE
T TNVVISE investments can oftentimes he
*-^ avoided fiy seeking the advice and judg-
ment of those expert in gauging the trend of
financial affairs.
There is no difficulty in securing such advice
from us - advice that is based on the matured ex-
perience of men who have devoted years to the
study of every phase of investment finance.
In all cases vchere financial advice is sought vre
can place at your disposal the service of an or-
ganization competent to guide you with wisdom
and forethought.
Every reasonable precaution is taken to ensure
our clients against diminishmeni of values, by
frequent analysis of conditions governing individ-
ual investments.
MAY WE ADVISE YOU?
M. S. WHEELWRIGHT & CO.
Canadian Investment Securities '"" '^
TRANSPORTATION BLDG.,
132St. PeterSt. MONTREAL 63 Sparks St.
QUEBEC
OTTAWA
Oil Leases in Northern Alberta
WNIT1-:
JOHN S. LEITCH
60S Electric Railway Chambe
WINNIPEG. Manitoba
((
The
M
onetary
T
imes"
«
III be sent you for four mor
ur TRIAL SUBSCRIPTION p
ths
Ian
on
or
$ l.OO
Jl
ist send a
dollar bill and your na
me
and addresH.
' ulhr Mntnti
Fire Insurance Company. Limited, of PARIS, FRANCE
Capital fully subscribed. .^1% paid up $ 2.000.000.00
Fire and General Reserve Funds 8.270.000.00
Available Balance from Profit and Loss Account S.S.SBl (K)
Net premiums in 1919 8.648,fi69,00
Total Losses paid to 31st December. 1919 114,500.000.00
Canadian Branch. 17 St John Street. Montreal: ManaRer for Canada.
Maurice Fe«k,vm>. Toronto Offices. J. H. Ewart. Chief Agent. 18 Wellington
Street Hast ; K. H. Rjci: & Sovs. Toronto Agents. 66 Victoria Street.
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
ATLAS
Assurance Company Limited
Foundeil in the Reign of George III
Subscribed Capital f 11,000.000
Capital Paid Up 1 .320,000
Additional Funds 24,720,180
The company enjoys the highest reputation for prompt
and liberal settlement of claims and will be glad to receive
applications for Agencies from gentlemen in a position
to introduce business.
Head Office for Canada— 260 St. James St., Montreal
40
THE MONETARY TIMES
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
StuckH
AbitibiP.AP...
Asbestos Corp..
Amos-Holden ..
■27J
Atlantic Sugar
Bell Telephone ....
Brazilian T.L. & Power
B.C. Fish
Bronipton Pulp & P. . .
Canada Cement
•■ ...pfd
Canadian Car
" pfd
Can. Con
Can. Cottons
■• pfd
Canadian Gen. Elec...
Can. Kubber pfd
CarriaKe Fact
Can. Steamship
■■ ■• pfd
•■ ■• ...Vot. Trust!
Con. Mining* Smel...
Del Kys
Dom. Canners
Dominion Bridge
Dom. Iron pfd.
Dominion Glass. ,. pfd.!
Dom. Steel Corp !
-pfd..
Dominion Textile I
•■ ..pfd.
Howard Smith
" ....pfd.
Illinois Tract
■■ pfd.
Kaministiquia
Lake of the Woods. .
Laurentide
Lyall
Macdonald Co
MacK-ay pfd.
Montreal Cotton
■• ...pfd.
Montreal Power
Tram
" ..Deb.
Telegraph...
National Breweries —
Ontario Steele
Ogilvie Flour Mills pfd.
Ottawa
Penmans
pfd.
Quebec Ry. L. H.&P..
Riordan Pulp & P
Shawinigan W.&P ...
St. Maurice
Sher.-Wms
pfd.
St. Lawrence
Spanish River
•• pfd.
Steel Co. of Canada...
•■ " •• pfd-
Toolce Bros
■• pfd,
Toronto Ry
Wabasso
Wayagamack P. & P
Winnipeg Ry
Woods .Mfg. Co.... pfd
Kaiik.'i
Commerce
Hamilton
Hochelaga
Merchants
Molsons
Montreal
Nationale
Nova Scotia
Royal
Standard
Union
Bonds
Asbestos Corp
Bell Telephone Co.
Can. Car
Open High Low 1 CI
Can. Cement
Can. Cottons'
Can. Rubber
Cedars Rapids Mf'g .
City Mont. Dec. S's, I9'.'2
" MayS's. I92:t,
" Sept.S's. 1923
Dom. Can.W.Loan.l925
IS.'il
1937
Victory Bonds, 1924
1934
1922
1927
1937
1923
1933
9»h
904
.Ml
50
711
70
KH
66i
,S0
50
Mk
70)
41
4li
76i
76i
IS43
1845
IIIIW
iM
421f
95
7244
93
21132
97*
3683"
9(U
5009S
9JS
29417
98
IR7B7
971
99J
83011
40S8S
97
42742
98
MONTKEAL-ConMnued.
Bunds
Sales Open High Low Close
Dom. Cottons I
Dom. Coal i ■
Dom. Iron [ 7000; 80j
Dom. Steel !
Dom. Textile
Lake of Woods |
Mont. Tramways I
National Breweries . liono 90
Ogilvie Flour lOOOi 96
Ontario Steel .
Penmans
. ' 3000 87
.1 1000' 80
QuebecRy.L.H.&P... 17000: 63i
Riordon lOOOl 89
Sherwin-Williams... | |
Steel of Can , ISOOl 94
West Kootenay ; '
TOBOKTO-Wcek Ended Apr. ISIIi.
Stocks
Atlantic Sugar
Abitibi
Barcelona
Bell Telephone
Brazilian Tracti(
B.C. Fish
Burt. F.N
Can. Bread
Sales Open High Low Cli
pfd.
banners..
. pfd.
;an. Car & F. ...
..pfd.
Canadian Pacific
K....
:;an. Gen. Elec.
.pfd.
Canada Steamsh
pfd.
Con. Gas
Crows Nest
Dome
Duluth
Loco
.ptd
.Mackuy Conipan
es. . .
,ptd
Maple Leaf - ...
' pfd
Bur
pfd.i
pfd^'
Porto Rico 1
■■ pfd.l
Quebec R.L.H. & P
Riordon 1
Rogers I
■■ pfd.!
Salesbook
pfd.
Sawver-Massev
, . , pfd.
sh RiN
Hamilton .
Imperial
:in. LLUid.
Ham. Prov
Land. Bl-g
Lon. & Can. .
Toronto Mtg.
Toronto Gen. Trust
Bonds
Can. Bread
Canners
Klec. Dev
Loco
Porto Rico
Rio. Jan. T.. L. &P,
Steel of Can
.pfd.
-pfd.i
luouu
83J
1000
90
1000
93
1000
87
lOOO
78
2000
70
16200
93
TOUOHTO— Continued
Wnr Loans
Dom.Can.W.Loan.l925
1931
1937
Victory Loan 1922
1923
1927
1937
1933
1924
" •• 1934
WINNiPEV— Wrrk ended .ipr. »lli.
Sales
Open
High
Low
H400
95
95i
94? 1
4600
92t
93i
921
2O4O0
97|
978
96J i
IO4O00
98|
98J
98S ;
55250
97J
98
96}
20100
97|
98j
m
33850
99i
99
I1250C
97*
98
97i (
32 IOC
96
9B3
96 ;
14 1350
94 «
94 ii
94i 1
•■ 1924..
•■ 1927..
•■ 1937..
" 1933..
" 1934.
Loan 1925
•■ 1931 ....
'• 1937 . . . .
: Inv
tPer
Sales Open High I Low
1100
5200
34750
17200
SiEW lOKK-Week ended Apr, aili.
Slocks
Sales
Open
High
113}
Low
I12j
Close
Canadian Pacific
2900
112i
I12J
Nova Scotia S. & Coal.
Granby Consolidated. .
Bonds
Dom. of Can. 5% 1921
5i% 1921
5% 1926
Si% 1929
5% 1931
Ontario Silver Mining.
200
100
SOOO
6400U
87000
107000
38000
1100
36
17
■■4i'
36.i
17
93
89
4i
36
17
998
924
884
4
36J
17
99g
99
91
92
89
4 .
LOKDOK, Eng.— Week ended Mar
. S«ll
«iov'l. .t Mini.
Sales
Open
High
Low
Close
104
58J
104
58?
B.C. 3%
=81
,58?
64^
65 :i
... 3% Reg...,
641
65?
64i
4% 1940-60.
7U
72
71i
72
•• .... 4i% 1920-25
92S
923
97*
9?*
Jalgary S% deb
80
82
SO
82
U% deb
90*
87}
76
Edmonton 5% bds. 23-53
80
80
76
5% debs
m
823
82S
87?
Manitoba41, deb. 1928.
84
84
84
84
60i
60*
Montreal 3% deb
494
49*
491
49*
74*
74}
66i
66}
7''3
6Hi
66,1
72i
77
722
Quebec 4:%
77
77
77
62}
683
62?
66}
62S
66}
3i% 1929
Vanc'ver 4%cons. -50-2
6U
62*
611
69*
54?
923
3i% 1923
925
92?
92§
3»",o 1929-49.,
6H
61*
61
61*
4i% deb. -20.25
87
87
87
87
5*% cons.
92i
92i
92
92
Winnipeg 4i"o 1943-63..
80J
82
80?
82
4% cons
80*
824
80
82
ICallwajK
Can. Nor. 4% deb
.Sfii
.W*
56}
561
■■ ■■ 4%cons.deb.
9I.(
»iS
91}
91i
" Pac.4%deb.
70i
71*
7O5
714
Can. Pac
1431
144i
142
1425
•' 4% deb.
65?
61
65}
614
•■ .....'.4% pfd.
61
62
G.T.P. Br. 4% bd 1939.
S3
834
82*
82*
G.T.P.4%deb
43(
43*
4'M
4''*
G.T.P. 4% 1955
68
68*
67*
67*
Gr. Trunk . . 4°„ guar.
62
631
61,'
61*
Gr. TrunkS% 1st. pfd..
44.1
44*
42}
42?
Gr. Trunk 5°o 2nd pfd..
33
33iJ
32S
32S
Gr. Trunk 4"o 3rd pfd..
131
13i
12i4
V'i
Gr. Trunk 4';o cons
62
63
6li{
62
Gr. Tr. West. 5',:;, deb. .
763
76g
76
76
Ont.S Quebec 5% deb.
78*
78*
78^
78*
P. Gt. East. 4*% deb. '42
81*
83
814
82*
Ind.. Fin., Etc.
Can. Car 6A bds
98*
98i
98*
98*
Can. West Lumber 5%
m\
.56i
.55*
55*
Can. Gen. Elec
123
123
123
123
Toronto Pow. 4^-% deb
Van. Pow. 4j% gr. deb.
724
53
74
53
72*
53
Can. Bk. of Commerce
4li
n
4IJ
4111
453
45^
46}
April 15, 1921
THE MONETARY TIMES
NOVA SCOTIA INCREASES CORPORATION TAXES
Necessity for More Revenue the Reason — Commission to
Investigate Local Taxes — Other Work of the
Legislative Session
T EGISLATION looking to the widening of the sources of
•■-^ revenue of the province, the further extension of the
public health program and niovhers' pensions, was forecast
in the Speech from the Throne opening the 1921 legislative
session of Nova Scotia on March 9. The curtailment of pro-
duction in the coal, iron and steel industries was referred
to and the hope expressed that, with wise counsel and full
and frank understanding of prevailing conditions and with
a friendly spirit of co-operation between employer and em-
ployee, any difficulties incident to the general industrial
situation would be surmounted.
Taxes on Corporations
On April 8 a bill to amend the Provincial Revenue Act
was introduced by Hon. E. H. Armstrong, acting leader of
the government. The present taxation, it is expected, will
produce during the current fiscal year $426,000. By the
changes made the revenue will be increase*! by approximately
$11S,000. The corporations affected by this act are banks,
insurance companies, loan and trust companies, telegraph,
telephone and cable companies, gas and electric companies,
electric tramways, railways and incorporated companies with
a paid-up capital of $100,000 or more. The main alterations
are in the taxation of banks, telegraph and cable companies,
express companies and electric light companies. The methods
of taxation have not been altered, though the amounts
chargeable have been increased, with the exception of tele-
graph and express companies, which are expected hereafter
to pay an additional tax based on their gross earnings,
within the province. The provision of the act respecting the
taxation of certain companies with a paid-up capital of
$.500,000 or more, have been altered so as to increase the
tax from one-twentieth to one-tenth of one per cent, on the
paid-up capital empbyed in Nova Scotia, and to make it
applicable to all companies having a paid-up capital of
$100,000, instead of $.'500,000.
The measures thus far introduced include a bill to
authorize the Governor-in-Council to i-aise by way of loan
on the credit of the province the sum of $.500,000 for the
public service. The sums realized frqjn the sale or disposal
of debentures or of Nova Scotia stock issued for the purpose
of raising the said sum or any part thereof to be paid into
the provincial treasury and be used and applied for the pur-
pose of paying for extensions or additions to the buildings
the Victoria General Hospital and for additional building
for said hospital.
A Ta.xation Commission
There is also a bill for the appointment of a Tax Com-
mission, with the object of bringing the assessment system
of Nova Scotia under a central body. In discussing the bill
on April 6 Hon. E. H. Armstrong explained that it was felt
the time had arrived for an improvement of the assessment
law, and some remedies applied to overcome the prevailing
irregularities under the present law. The bill which the
government had introduced was based on a bill in force in
Manitoba, which was adopted in that province to correct
much the same conditions of affairs as prevailed in Nova
Scotia. The bill provides for the establishment of a com-
mission to be composed of three members, who shall be
possessed of knowledge and training in the subjects of taxa-
tion and skill in such matters. The office shall be in Halifax,
and regular meetings shall be held every month, and, when
necessary, sittings may be held elsewhere in ' the province.
The commissioners shall receive remuneration to be fixed by
the Governor-in-Council.
The Commission shall study, investigate and report on
the assessment and tax laws of this and other pi-ovinces of
Canada and of other countries, to study the most equitable
methods of assessing persons and property and of equaliz-
ing assessments, and to submit to the legislature recom-
mendations for such legislation they may deem necessary to
improve the existing laws of the province in that regard.
The Commission is to have general supervision over the ad-
ministration of the assessment laws of the province.
The first annual report of the Nova Scotia Power Com-
mission has been handed down by Hon. E. H. Armstrong,
the chainiian. It reviews what the Commission did in the
first year of their existence. The report includes a descrip-
tion of the St. Margaret's Bay development, and the in-
vestigations which have been made for development work
in other parts of the province, specially Sheet Harbor, to
furnish 25,000 horse-power to Pictou County industrial
towns and country; and the Bear River resources to light
the Annapolis Valley 'rom Middleton to Digby. The Com-
mission has been active in providing further development
for Lunenburg County, and various parts of the Annapolis
Valley.
AUTOMOBILE INSURANCE NEXT TO FIRE
Great Expansion in Business Brings it Second — Some Recent
Developments — Taxation of Business in Vancouver
(Special to The Monetat-y Times.)
Vancouver, April 8, 1921.
¥OHN JENKINS, president of the Canadian Automobile
*' Underwriters' Association has just been in Vancouver.
Mr. Jenkins stated in an interview that automobile insur-
ance in Canada had grown very materially of late and was
now next in importance after fire insurance. He thought
that the premium income of all companies for 1920 would
reach $5,000,000. He stated that in spite of the rapid growth
of automobile insurance that it was in a sense still in its in-
fancy and the companies were learning from experience.
They were, however, in tTie ratirg system proceeding along
more scientific lines and had arranged to have different
makes of cars analyzed and their defects made known. Some
cars were built in such a way that the fire hazard was
greater than in other cars and until such a defect was
remedied they would take a higher rate for fire.
The owners of course, would soon realize that they were
handicapped in this connection and the manufacturers would
be obliged to remedy the defects in their cars which would
be an important consideration for everyone concerned. In
the future rates would be more and more based on the merits
of the make of car. There was also the tendency in the
direction of a uniform rate throughout all the provinces
varied of course, according to the traffic and other local con-
ditions.
Taxing the Agents
The attempt of the city Vancouver to obtain power under
their charter from the provincial government to tax insur-
iuice companies and insurance agents as well as professional
men and many other businesses not hitherto taxed, has ap-
parently failed. A large deputation presented the case of the
insurance men, real estate, loan and mortgage companies,
while the professional men, banks, and amusement companies
also sent delegations to Victoria to interview the private
bills committee.
At the conclusion of the hearings the different delega-
tions were asked if they were willing to consult with the com-
mittee regarding the limitation to be placed on the taxing
powers of Vancouver. The delegations answered without
exception that they would not be willing that they would
only be satisfied if the Vancouver bill empowering that city
to tax business and professional interest was thrown out
altogether.
The government were incidentally informed that if Van-
couver was allowed this power that every other municipality
would ask for the same power and the provincial government
would find that their sources of revenue would be materially
impaired. At this writing, the government has taken no
action and semi-offieial information has come through that
no action will be taken at this session at least.
42
THE MONETARY TIMES
Volume 66
Corporation Finance
Consolidated Mining and Smelting Company Had Large Deficit— Britisli Empire Steel Corporation
is Approved— National Steel Car Corporation Has Changed Its Name— Net Earnings of Detroit
Railway Were Lower Last Year— Goodyear Tire Company Applying for Reorganization Powers
Brazilian Traction, Light and Power Co., Ltd. — Gross
earnings of the company in February, 1921, were 11,941,000
milreis, an increase of 2,560,000 milreis over the same period
in 1920. Net earnings amounted to 5,679,000 milreis, as
compared with 4,984,000 milreis in February a year ago.
For the two months of the current year net aggregated
11,896,000 milreis, an increase of 1,802,000 milreis as com-
pared with 1920.
Minneapolis, St. Paul and Sault Ste. Marie Railway. —
The company, which is controlled by the Canadian Pacific
Railway, for the half-year ended February 28 last, showed
an operating loss of $556,045. Gross revenues in Febru&ry
were 12.22 per cent, under 1920, and in January 8.01 per
cent. The company received freight rate increases of 35
per cent, last fall. Operating deficits for the last half of
the period were as follows: December, $490,943; January,
$974,515; February, $827,806. For the previous three months
operating income was &s follows: September, $597,607;
October, $739,029; November, $410,583.
Trinidad Electric Co., Ltd — Gross income of the com-
pany for 1920 amounted to $423,610, as compared with
$327,486 in 1919. Operating expenses were considerably
higher at $294,735, as compared with $262,185, while a sum
of $25,000 was set aiside for reserve for replacement of
machinery, but the good increase in gross enabled the com-
pany to show net earnings of $66,451, as compared with
$26,301.
In his report to shareholders, Hon. W. B. Ross, K.C.,
president, remarks: "Since the close of the year there has
been a great improvement in exchange and your directors
have felt justified in announcing that a dividend of 1 per
cent, will be paid for the quarter ending June 30, 1921."
Demerara Electric Co., Ltd. — After operating expenses
and bond interest, net earnings of the company in 1920
amounted to $13,432, as against $25,008 for 1919. Gross
earnings at $237,150, were the best in the history of the com-
pany, but with operating expenses at 82.30 per cent., net
made the poorest showing in the company's history. In 1911
the gross earnings were only $139,112, but with operating
expenses of only 52.66 per cent., net earnings before bond
interest amounted to $65,850, which compares with $41,967
last year.
Hon. W. B. Ross, K.C., in his report states that the
price of fuel and general supplies shows no sign of im-
provement. Some considerable expenditure will have to be
made during the coming year to keep the plant of the com-
pany efficient. Since the close of the fiscal year there has
been a substantial improvement in exchange which will ma-
terially help the company.
Detroit United Railway. — Gross earnings of the com-
pany of subsidiaries in 1920, amounted to $28,986,227, as
compared with $24,683,037 in 1919. Operating expenses for
the year aggregated $25,025,164, leaving net earnings from
operation of $3,961,063. Other income for the year was
$676,117. The sum of $400,000 was provided for deprecia-
tion or contingencies, and $1,233,575 was transferred to
surplus account. The report shows total capital expenditures
on account of net additions to properties during 1920 of
$2,615,846. In presenting the report, President Brooks said: —
"The maintenance charges for the year amounted to
$6,309,786, which, together with a depreciation provision of
$619,200, represented a total charge against income of $6,-
928,986 for maintenance, accruing renewals and deprecia-
tions. While the gross revenues for 1920 were considerably
in excess of the gross revenues for 1919, there was a de-
crease in net income for the year before providing for de-
preciation or contingencies of $935,909, as a result of in-
creased wa.ge rates and managerial costs. Wages paid
motormen and conductors in 1920 amounted to $8,832,183,
an increase of $2,442,529, as compared with 1919."
British Empire Steel Corporation, Ltd. — Dominion Steel
and Nova Scotia Steel shareholders have ratified the agree-
ment of the merger of the two companies and the Halifax
Ship Yards, Ltd., as the British Empire Steel Corporation,
Ltd. The holders of the common shares of Dominion Steel
met in Sydney last week, with President R. M. Wolvin in
the chair, and approved the agreement for the exchange of
all their shares for cumulative 7 per cent, second preferred
and common shares of the British Empire Steel Corporation,
Ltd. The holders of the common shares of Nova Scotia
Steel and Coal Co., Ltd., also met a^t New Glasgow and ap-
proved a similar agreement in respect to the exchange of
their shares for shares of the British Empire Corporation.
These meetings virtually complete the consolidation of
these companies and the Halifax Ship Yards, Ltd. The only
remaining item of procedure of immediate interest to the
sha'reholders is the actual exchange of the existing certifi-
cates for their shares in these companies for those of the
British Empire Steel Corporation, and it is announced that
the British Empire Steel Corporation will on April 16 de-
posit with National Trust Co., Ltd., Montreal, its fully
paid cumulative 7 per cent, second preference and common
shares to the amount of $40,850,000 and $17,200,000, respec-
tively for the purpose of exchanging the same for $43,-
000,000 of fully paid common shares of the Dominion Steel
Corporation, Ltd. The shares of the British Empire
Steel Corporation will be listed on the stock exchange in
Montreal, Toronto and New York, and probably in London
also. Details of the exchange of shares have already been
given in The Monetary Times.
Hamilton Car Co., \AA. — The company has been organized
for the purpose of carrying on the business heretofore con-
ducted under the name of the National Steel Car Corpora-
tion, Ltd. This is the second reorganization of this concern
that has taken place within the past two yeai's. Share-
holders of the orig'inal company are requested by the manage-
ment to send in their certificates to have them changed into
Hamilton Car Co., Ltd., scrip.
The National Steel Car Corporation in December, 1919,
took over the National Steel Car Co., assuming the entire
indebtedness of the latter company and paying therefor 19,-
000 shares out of a total of 100,000 shares issued by the
new company. In addition, one-half of the net profits realized
upon liquidation of the old company's claims arising out of
certain contracts with the French government were to be
retained by the old company.
It is understood that the company has orders on its books
aggregating $14,000,000, and is operating at capacity in its
rolling- stock department, and is also busy in the manufac-
ture of motor trucks.
Goodyear Tire and Rubber Co. of Canada. — A bill has
been introduced into the Ontario legislature, providing for
reorganization in order to prevent the company from going
to the wall. The object of the reorganization is to provide
a means of meeting liabilities. The common stock outstand-
ing, which amounts to $5,332,000, will be reduced from $100
par to $10.
The owners of the common stock are the Goodyear Tire
and Rubber Co., the parent concern, located at Akron, Ohio,
which has 76 per cent, and the management of the Canadian
April 15, 1921
THE MONETARY TIMES
company holds the remaining 24 per cent., so that the public
is not affected by this drastic remedy. The Canadian com-
pany owes $.3,800,000 in the United States, of which $2,600,-
000 is to the parent company, and the balance $1,200,000, is
in the shape of notes in the hands of the public across the
line. The Canadian company now has the privilege of pay-
ing the American company by the issue of prior preferred
stock, as soon as they liquidate their inventory. In addition,
they have made arrangements for the payment of outstand-
ing contracts for fabrics at high prices on a basis of 25 per
cent, in prior preferred stock. Meanwhile the balance of the
fabrics will be delivered only at the request of the company.
The immediate outlook of the company's business is
more encouraging. It is anticipated that by the close of
September next all liabilities will be paid off, with the excep-
tion of $1,200,000 notes. These notes will be replaced by
an issue, running for three, four and five years. At pre-
sent the business of the company is showing good improve-
ment, according to authoritative statements.
Notice of the company's application to parliament is
given in an advertisement elsewhere in this issue.
Consolidated Mining and Smelting Co. of Canada, Ltd. —
Net profits for the twelve months ended December 31 last,
declined to $291,349, against $1,161,605 in the fifteen months
covered by the previous statement and $949,245 in the full
fiscal 1918 period. After payment of bond interest and the
disbursement of three quarterly dividends on the common
stocks, together with provision for Federal and provincial
tax requirements, the deficit for the year amounted to $849,-
319, against an adverse showing of $489,789 at the end of
1919, and $212,152 in 1918.
This reflects the drastic demoralization of the metal
markets last autumn, bringing with it the almost utter lack
of demand for several of the company's principal products
and involving the necessity of heavy writing off of inven-
tories.
The balance sheet shows that expenditures on pi-operties
and plants during the twelve months amounted to in excess
of $1,850,000, these having been provided for by a special
bank loan of $1,750,000, which, it is designated in the state-
ment, is for "accounts capital expenditure, 1920, in anticipa-
tion of funding arrangements." Other bank loans, over-
draft, etc., at the end of one year were increased to $3,601,-
204, compared with $3,067,435 in the 1919 statement, while
accounts payable grew from $1,183,503 as at December 31,
1919, to $1,777,463 at the end of 1920.
The value of ores, metals and smelter product on hand
and in transit corrected to conform with prices prevailing at
the end of the year, is given at $3,336,463, as compared with
slightly under $3,000,000 in the previous statement. Other
inventories are higher by upwards of $200,000 than a year
ago, standing at $1,486,920. Accounts receivable, reflecting
the slackness in the conditions prevailing at the end of the
year were down nearly $600,000, being shown in the 1920
statement at $356,316.
In a survey of the conditions prevailing throughout 1920,
President James J. Warren compares the prices of lead,
(Continued on page Uh)
DEBENTURES FOR SALE
DIVIDEND NOTICE
NIPISSING MINES COMPANY, LTD.
Head Office, Toronto, Can., April 11, 1921.
The Board of Directors has to-day declared a Quarterly
Dividend of Three Per Cent., payable April 30, 1921, to share-
holders of record, April 18, 1921. Transfer books close
April 18, 1921, and re-open April 29, 1921.
P. C. PFEIFFER Treasurer.
526
WALKERVILLE, ONT.
TENDERS FOR DEBENTURES
Sealed tenders addressed to the undersigned and marked
on the outside, "Tenders for Debentures," will be received
up to 12 o'clock noon of Thursday, the 21st day of April,
1921, for the purchase of the following debentures a^nd ac-
crued interest;: —
$60,982.35 Local Improvement Debentures; 10-year, 6%
instalment bonds, in $1,000 and odd amounts.
$35,000 Debentures; for extending the plant and equip-
ment of the Hydro-Electric System; 20-year, 6% instalment
bonds, in $1,000 and odd amounts.
Tenders must be submitted for each block separately.
Debentures will be delivered and must be settled for at the
office of the town treasurer, Walkerville, Ont. All deben-
tures a-re coupon bearer, and bear interest from the 14th
day of December, 1920. Principal and interest payable at
the CanS'dian Bank of Commerce, Walkerville, Ont., on the
14th day of December.
The highest or any tender not necessarily accepted. For
further information address
A. E. COCK,
Clerk and Treasurer.
Walkerville, Ont., April 14, 1921. 527
CITY OF ST. BONIFACE
DEBENTURES
Sealed tenders, addressed to the undersigned, and marked
on the outside, "Tenders for Debentures," will be received up
to Eight o'clock p.m. on Monday, the 25th day of April, 1921,
for the purchase of the following debentures to pay for Local
Improvements, Bridge and Waterworks:—
Date of Issue — 2nd January, 1921
30-year Bridge, h<^', $150,000.00
20-year Waterworks, %'!c .'".0,000.00
15-year Pavement, 6'/f 70,548.00
10-year Pavement, 6' r 2,685.00
$273,233.00
Principal payable at the end of the term.
Coupons for interest attached.
Interest payable half-yearly on July 2nd and January 2nd.
Principal and Interest payable at: —
Banque d'Hochelaga, St. Boniface and Winnipeg, Man.,
and Montreal, Que.
Canadian Bank of Commerce, Toronto, Ont.
Clydesdale Bank, Limited, London, England.
Debenture and Coupons expressed in Sterling and Cana-
dian currency and of denominations desired by purchaser.
Purchaser to pay accrued interest, take delivery and make
payment in St. Boniface or Winnipeg, in Manitoba, Canada.
Total amount of bid to be expressed in Dollars and Cents.
No tender necessarily accepted.
ERNEST GAGNON,
City Clerk.
St. Boniface, Man., 2nd April, 1921. 520
A meeting of the creditors of the Lambton Knitting
Mills, Petrolea, was held at the offices of Osier Wade, To-
ronto, on March 30, when the assignee was instructed to go
ahead and wind up the business. The assets were placed at
$24,616, with liabilities of S43,248.
THE MONETARY TIMES
Volume 66
CWRI'ORATION FINANCE
(Continued from page IiS)
zinc, copper and silver prevailing at the end of August last
with those ruling- at the end of the year, and states that
given a reasonable monthly production at the August levels,
the dividend of the company would have been fully earned
in the year. Despite the collapse of the metal markets dur-
ing the autumn, higher operating- costs, including wages,
fuel and freight charges, militated against the possibility of
making a more satisfactory showing, several additional in-
creases in costs being almost coincident with the decline in
the demand for the metals produced by the company.
The result of sixteen months operations by the West
Kootenay Power and Light Co., a subsidiary of Consolidated
Mining and Smelting Co. of Canada, was, after common
dividends had been paid, to reduce the surplus of the enter-
prise from $479,294 to $179,721 slightly above those for the
year ended August, 1919, and for the sixteen months ended
December, 1920, gross at $794,101, compared with $560,129
for the twelve months in 1919.
Interest earned decreased, expenses were much increased,
as was depreciation, so that the balance left for preferred
dividends amounted to only $144,277, compared with $224,-
345 for the twelve months' period. The increase in the com-
mon stock of the company necessitated larger dividends,
which, when paid left a deficit of $299,573, reducing the sur-
plus account, as stated, to $179,721.
Fixed assets and accessories increased in value by $1,-
713,254 to $5,613,822, cash on hand dropped $53,000 to" $23,-
087, while accounts receivable rose $42,000. The company's
common stock issued is given at $3,212,000, an increase of
$548,000.
Bell Telephone Co. of Canada, Ltd. — A further increase
of 2 per cent, on rates and charges for exchange service has
been allowed the company by the Dominion Board of Rail-
WE-y Commissioners, in a supplementary judgment to that
issued on April 1. An error in computation, for which
Assistant S. J. McLean, chief commissioner, takes respon-
sibility, and expresses regret, is the reason given for the
increase from ten to twelve per cent. Commissioner Mc-
Lean states that by the original judgment it was found that
there was a deficit in the necessary revenues of the Bell
Telephone Co. amounting to some $2,100,000. The sum of
$1,150,000 would accrue to the company from incre&sed long-
distance charges and service connection charges, leaving
approximately $1,000,000 to be obtained from exchange ser-
vice charges.
After issuance of the original judgment, states Commis-
sioner McLean, it was represented by the-company that the
necessary $1,000,000 would not be produced by a 10 per cent,
increase in exchange service charges. The equalization of
rates, whereby Montreal was placed on the Toronto basis,
resulted in a decrease in Montreal exchange revenue, and
this was a contributing factor to the inadequacy of the re-
turn from increased rates. The company has submitted
statements of the revenue obtained as on the basis of Feb-
ruary, 1921, a month which, it is stated, is better than the
average. On the computations submitted, the increase in
earnings from the 10 per cent, allowed would fall short by
approximately $220,000 of the $1,000,000 allowed.
The long-distance increases allowed will go into effect on
April 21, and the exchange rate increase on the same date,
(ir within two days afterwards.
RECENT FIRES
Loss For Week Totals $167,500, Compared With $215,600 Last
Week — Morin Building in Quebec is Heaviest Loss
Apsley, Ont. — April 2 — Home of R. McCauley. Cause,
overheating of stove pipes.
Barnston, Que. — April 8 — Home of Peter Decoteau.
Cause, believed incendiary. Ins,urance, $1,400. Loss, $6,000.
Blackville, N.B. — April 4 — General store of Thos. Dunn.
Loss, $2,000.
Bridgeburg, Ont. — April 7 — Barn on Anthony farm.
Cause, spark from train. Loss, $3,500.
Burlington. Ont. — April 6 — Frame building next to
Coates and Sons planing mill. Cause, overheated furnace.
Chatham, Ont.— April 10— G.W.V.A. clubrooms.
Clarkson, Ont. — April 10 — Town hall and church sheds
destroyed. Church and six houses damaged.
Cloverdale, B.C. — April 7 — Clayton Lumber Co.'s saw-
mill on Pacific highway. Loss, $20,000.
Frelighsburg, Que. — April 7 — Barn of Mr. Harvey, partly
insured.
Hamilton. Ont. — April 13 — Universal Garage, 752 King
St. East. Loss, $4,000.
Kerrisdale, B.C. — April 3 — Home of Mrs. J. E. Gilles,
Marine Drive and Oak Street. Loss, $2,000.
Montreal, Que. — April 10 — Storehouse of Napoleon
Senecal, 221 Prefontaine St. Home of George Dufort, Angus
Park, Montreal North. Residence of A. Gagnon, 3470 Notre
Dame St., Longue Pointe.
Peterboro, Ont. — April 11 — Caretaker's house at Exhibi-
tion Park. Partly insured.
Prelate, Sask.— April 2— Home of E. Schroen. Started
from cook stove. Insurance, $5,000. Loss, $8,000.
Quebec. Que.— .April 10— Morin Building, 109-113
Mountain Hill. Loss, .$100,000.
St. John, N.B. — April 7 — Bedford Construction Co.'s
building in the Red Head Road.
Taymouth, N.B. — April 10 — Home of John A. Young.
Insurance, .$2,500. Loss. $15,000.
Thorold, Ont. — .April 12 — Pile of pulp and scrap paper
at the plant of the Beaverboard Co.
Vernonville, Ont. — April 7 — Barn on Nathaniel Drumm's
farm.
AVinnipeg, Man. — April 10 — Building at 50 Princess St.,
occupied by Lion Office Supply Co., Purdie and Co., and Fine
Diamond Products Co. Loss, $7,000.
ADDITIONAL INFORMATION CONCERNING FIRES
Blackie, Alta. — March 23 — Store belonging to O'Neil,
McDonald and McDonald. Loss, $29,000. Insurance of $17,-
400 in the Atlas, North British Mercantile, Home, and Canada
Security.
Vancouver. — The Fire Chief's report for the month of
March states that during the month there were 87 alarms
with a total loss of $7,797. There were 30 fires caused from
chimneys, carelessness with cigarettes caused three, and de-
fective chimneys caused three.
Vercheres, Que. — .April 5 — Boathouse and workshops be-
longing to Z. St. Pierre. Loss, $15,000, with insurance of
$1,500 in the Equitable Fire Insurance Co.
PUBLIC LIABILITY INSURANCE
COBALT ORE SHIPMENTS
The following are the shipments of ore from Cobalt
Station for the week ended April 8th: —
O'Brien Mine, 64,000. The total since Januarv 1 is
2.120,511 pounds or 1,060.2 tons.
Separate application forms for various kinds of nublic
libality insurance have been prepared by the Motor Union
Insurance Co. They are for elevator liability, owners', land-
lords and tenants public liability, teams, contingent, manu-
facturers' and contractors', and golfers' public liability. , In
fixing rates for these forms the company is opei-ating inde-
pendently of the tariff associations.
Pl-fl-lsHHD EVRRV FpMfMV
The Monetary Times
Printing Company
of Canada, Limited
"Tile Canadian Engineer"
Trade Review and Insurance Chronicie
of CanaDa
Established \S&~i
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
U'. A. McKAGUE
Editor
Stocks Depressed by Unfavorable Statements
No Sign That Bottom of iMarket Has Yet Been Reached— Nearly All
Market Leaders Have Lower Profits — Range of Prices in 1920 and
in 1921 to Date — A Comparison of New York and Canadian Prices
BEARISH influences have depressed stock prices to lower
and lower levels during the past few months. The chief
factor has been the unfavorable annual statements issued by
leading companies for the year 1920, which although the year
was half over before the turn of the business tide was really
felt, show reduced profits in nearly all cases. Moreover, the
necessity for reduction in inventories has reduced surpluses
and in a few cases wiped them out entirely. This is shown
liy the following comparison of a few prominent Canadian
companies' net profits and surpluses: —
Net profits.
Surpl
uses.
Companies.
1920.
1919.
1920.
1919.
Abitibi Power & Paper
S:i.613.592
t 801,730
$ 3.688,571
S 1,674.979
\ mes-Holden-McCready
••110,!iOl
602.099
1470.2150
830,729
■■. - bostos Corp
1.661.672
1.473,752
2.0B2.831
1.586,390
li.ll Telephone
Hurt. K. N.. Co.. Ltd.
842,712
796,714
984.857
713,044
(."anada Cement Co.
2. 362.742
2.969,867
898,972
2.677,643
(';inad[an General Elecl
•ic
2.213,731
1,617,989
778,672
436,097
C.inadian Pacific Ry. . .
;I3. 1.53.044
32,933.036
117.770
116,389
221,168
225,897
Iinminion Bridffe Co.. L
td.
i)61.B30
1,343.305
4.293,144
3,848,613
Dominion Canners. Ltd.
293,699
819,823
2,0S5,83S
2,031.905
in.odwins. Ltd
•195.212
444,942
1,188.191
969.730
K.iward Smith Paper M
ll«
1.0S9.X9S
704,261
Montreal Cottons. Ltd.
617,2.i2
662. 5SS
4,284,371
3,089,142
Montreal L.H. & Power
Co
3.804.606
3,605,181
3.243,6.S2
2,608,204
Nova Scotia Steel & Coal.
2.376.086
2,193,304
3,016.868
2,726,461
I'enmans. Ltd
460.305
1,437,291
1.045,391
1,004.269
Torto Kico RIys. Co.
«17.5,';S
459,543
555.264
289.172
Provincial Paper Mills
1,226,775
420,573
633.403
133.40S
.-^awyer-Massey Co.. Ltd
223.815
99.282
•362,020
•4!i2.9.S7
.■^hawinican Water & Pa
we
1.600,042
1.473,743
39..W3
30.550
.Steel Co. of Canada..
3.924.401
4,000,940
8,740,965
8.195.302
WinnipeK Electric Ry.
■e<
796,575
and surplus
297.855
••Net lo
1,845,501
ss. tDcbit b
1.279,172
•IncIudinB all reser
alance.
Comparison of Prices
The Canadian stock markets are, of course, dominated
l)y New York. The course of prices in New York has been
steadily downward since early in 1920, following the first
severe break in November, 1919, a recovery, and another
break in February. The chart reproduced herewith, taken
from The Anytalist, illustrates the course of the New York
market. The tendency of Canadian stocks during the past
1.") months is also illustrated herewith in graphical form; the
figures used are an average of price of 12 stocks at the end
of the month calculated by Professor H. Michell, of McMaster
University, Toronto, the following common stocks being used:
Bank of Commerce, Canadian Pacific. Dominion Textile, Do-
minion Bridge, Consumers' Gas, Shawinigan Light and Power,
Pcnmans, Russell Motor. Bell Telephone, Canadian General
Klectric, Lake of the Woods Milling, and Canada Steamships.
The average price of these has been as follows: —
-Jan 109.9
[•>li 110.3
Mar 109.0
A more detailed illustration of the course of prices of a
representative list of stocks is given by the following com-
parison of high and low prices in 1920, and in 1921, up to
the close of business on April 22: —
1920, 1921 Jan.-Apr. 20.
Companies. High. Low. High. Low.
Abitibi Power & Paper Co.. Ltd. ... 355 248 57% 33
Ames-Holden-McCready. Ltd 137 U 60 35 23
Asbestos Corp. of Canada 103 64 82% 72V4
Bell Telephone Co. of Canada HI 100 112 99%
Burt. K. N.. Co.. Ltd 110 83 109 101%
Canada Cement Co 75 55 66Vi 55M!
Canadian General Electric Co 109 91 117% 93
Canailian Pacific Railway 140 133 . 135^4 123%
City Dairy Co., Ltd 62 50 66 66
Dominion Bridge Co., Ltd 107 69 92 73H
Dominion Canners. Ltd 66V, 26 45 25
Goodwins. Ltd 35 26 25 25
Howard Smith Paper Mills, Ltd 167 74% 110 85
Montreal Cottons. Ltd 87 78 SSMj 72
Montreal L.H. & Power Co.. Ltd.... 90 76 86 79yj
Nova Scotia Steel & Coal Co 67% 42 44 37
Penmans. Ltd 148 93 103 94
Porto Rico Railways Co BO 2814 45 42Vl
Provincial Paper Mills. Ltd 182 80 99 90
Sawver-Massey Co.. Ltd 14% 14% 15 13
Shawinican Water & Power Co 119V4 97'i 108 102
Steel Co. of Canada 88',^ 54% 65'(. 57
Winnipe- Electric Railway 40 30 4A 39
While the decline in average prices has been fairly
steady, the movement of individual stocks has by no means
been so. During the past week Riordon common stock has
lost no less than 60 points, this constituting one of the most
.Average Price of 12 Canadian Stocks
Feb. ..
... 122.9
Aug.
... 122.9
Mar. ..
... 124.4
Sept. .
... 116.6
Apr. . .
. . . 126.0
Oct. . .
... 113.3
May .
. . . 123 5
Nov. .
. . . 108.4
June
... 122. .1
Dec.
... 106.7
JAN 1E8 MAI? APs;my juuijbu auc ien ocT.mv pec j<vt£b mar
1920 1921
spectacular declines on the Canadian markets in recent years.
The first in the present movement was the fall of 13 points
in Atlantic Sugar on July 28 last, and the same stock went
down 20 points on November 8. The paper stocks, which held
up well during the early part of the movement, have lost
much ground during the past few months. Canada Steam-
ships stocks, both common and preferred, has also suffered
a great deal.
The Annalist's chart of prices on the New York exchange
is shown on page 6.
THE iMONETARY TIMES
Volume 66
AVERAGE PRICES OF NEW YORK STOCKS
The black line shows the closing average price of fifty stocks, half industrials and half railroads. The black area shows
for each week the highest and lowest daily average price of the twenty-five industrials, and
the white area the corresponding figures for twenty-five rails.
WESTERN CITIES HAVE HIGH TAX RATES
Now Paying for Over Expansion— Progress of Seeding, and
Prospects for the Year
(Staff Correspondence.)
Medicine Hat, Alta., April 21, 1921.
QEEDING is now in full swing in all parts of Western
^^ Canada and will be general by the en3 of this week.
The seed is going- in under the most favorable conditions,
with plenty of moisture in the ground from the recent heavy
snow storm. There is plenty of labor available to meet all
demands in Moose Jaw and vicinity; ideal seeding weather
prevailed and everywhere the farmers were on the land. In
the city business was showing some improvement, and a
good spirit of optimism was found among the business men at
the present outlook. That spirit is always strong in the west
in the spring time. Present conditions, however, are said to
be very similar to 1915 when a record crop was grown. An-
other 191.5 crop would mean a great deal to the west and in
fact to all Canada.
Many whom I have spoken to look for dollar wheat this
fall. The tax rate of some western points is interesting at
the present time. Regina's mill rate for this year is 43,
mills. Saskatoon 46.55, Moose Jaw 46, Melville, Sask., where
some diificulties have been experienced with bondholders will
have a mill rate of 57. In Medicine Hat the tax rate has
been fixed at 34 mills. The agricultural outlook in the Medi-
cine Hat district this spring is good, everyone is optimistic
that this year is the cycle for plenty of moisture and good
crops. In fact the district is not taking any chances, or have
arrived at the desperation stage, for the citizens and farmers
in the community under the auspices of the United Agri-
cultural Association are bringing in Charles M. Hatfield,
from California, who has the reputation of being a success-
ful rainmaker. If Mr. Hatfield can produce rain. Medicine
Hat and Southern Alberta is the place for him. The Canada
Land and Irrigation Co. are spending a large amount of
money on an enlarged irrigation program this year. Irriga-
tion, undoubtedly, is the only solution for agricultural de-
velopment in this territory and in large areas of Southern
Alberta. The industries of Medicine Hat, many of them, are
working to full capacity, including at least two of the large
milling companies, also the Alberta clay products plant. The
milling business for domestic trade is good, large shipments
going to the Pacific coast, wholesale houses report a fair
business for this season of the year. Collections on the
whole are slow.
TRUSTEE CO. OF WINNIPEG
A slight falling off in estates under administration is
reported by the Trustee Co. of Winnipeg for 1920, but guar-
anteed investments increased from $566,768 to 8570,910. As
was the experience with most other financial institutions,
expenses increased largely, but notwithstanding, net profits
amounted to $10,481, compared with $9,779 previously. The
usual dividend was paid at the rate of 6 per cent., while
$2,000 was transferred to reserve.
A feature of the balance sheet is that real estate hold-
ings were reduced from $23,504 to $4,586, thus increasing
the interest bearing securities by a large amount. The paid-
up capital is now $141,096, as against $134,166 in 1919,
while the reserve is $12,000.
April 22, 1921
THE MONETARY TIMES
The Week in Parliament
Government Issues Ultimatum to Grand Trunk— Railway Matters Also Be-
fore Special Committee — Dominion Advances to Great Britain — More Railways
Seek Incorporation — Government Ships to be Used on Inland Waters
(Special to The Monetary Times.)
Ottawa, April 21, 1921.
Thursday, April 14
In House of Commons: — (a) Bill to amend Winding-up
Act, requiring liquidator of business to prepare statement of
assets and liabilities, and the sending of statement, with
detailed information, to Statistical ISranch at Ottawa, read
first time: (b) Bill to ratify protocol accepting statute for
Permanent Court of International Justice, read first time;
(c) Third reading of Interim Supply Bill, granting one-sixth
of estimates; (d) Post Office Act amending bill read second
time; (e) French trade agreement read second time; (f)
Resolution to wind up Wheat Board passed, time being
granted for purpose, and hill based on it read first time;
(g) Mines branch estimates passed.
In .Senate: — (a) .Vet incorporating Canadian Transit
Company read second time.
Friday, April 1,t
In House of Commons: — (a) Report of Parliamentary
Committee on Agriculture that tentative agreement had been
come to with manufacturers of agricultural implements as
(o standardization of parts of agricultural machinery; (b)
Archambault bill amending Criminal Code to prevent publi-
cation of defamatory material adduced or presented at trials
without evidence of extenuating circumtsances or arguments
as well, read first time; (c) French trade agreement read
third time; (d) .Second and third readings <if following bills:
One to authorize extension of time for completion of St. .lohn
and (Juebec Railway, between Centreville and Andover. N.B.,
one to amend Winding-up Act. and one to extend time of
Canadian Wheat Board to wind up its affairs; (e) Royal
assent to bills to amend Exchequer Court .\ct, to incorporate
Canadian Bar Association, respecting Montreal, Ottawa and
(Jeorgian Bay Canal Co., respecting Oshawa Railway Co.,
the Thousand Islands Railway Co., the Kettle Valley itailway
Co., the .Manitoba and North-Western Railway Co. of Can-
ada, the (Juebec Central Railway Co., the Essex Terminal
Railway Co., the Ottawa, Northern and Western Railway
Co.; (f) First reading of Currency Act amendment bill,
giving authority to make nickel coins in Canada; (g) Second
reading bill respecting (Quebec, ^Montreal and Southern Rail-
way Co.; (h) Estimates voted for Geological Survey branch.
Indian .\ITairs Department, Civil Government. Lighthouse
and Coast Service, Scientific Institutions, Steamboat Inspec-
tion, I'^isheries.
In Senate: — (a) •■"irst reiiding bill concerning James
MacLaren Co.; (b) I'hree readings and Royal Assent to
Interim Supply Bill; (c) Maritime Coal. Railway and Power
Co. bill, tirst reading: (d) Second reading Canadian Pacific
Railway bill; (e) Third reading Dominion Life Assurance
Co. bill.
Monday, April 18
In House of Commons: — (a) Fertilizer Act amendment
bill to provide for better marking of fertilizers as to con-
tents read second time.
Tuesday, .\pril lit
In House of Commons: — (a) .Appointment of commis-
sioners to enquire into and report upon the subject of hand-
ling of grain in Canada; (b) Bill respecting (irand Trunk
Arbitration read first time; (c) Canada-West Indies Agree-
ment bill read third time; (d) Opium and Narcotic Drug
.■\ct amendment bill read first time; (e) Second and third
readings Currency .\ct amendment bill introducing nickels
into Canadian coinage; and (f) Various .Militia and Defence
estimates.
In Senate: — (a) First readings of following bills: One
respecting ^lontreal Central Terminal Co., the French Trade
Agreement bill, one authorizing extension of time for com-
pletion of St. John and Ouebec Railway, one amending
Winding-up Act, one concerning Canadian Wheat Board,
one respecting London and Lake Erie Railway and Trans-
portation Co.; (b) Third reading bill to amend Act incor-
porating Gilmour and Hughson, Ltd.; (c) Bill respecting
James MacLaren Co., Ltd.
Wednesday, April 20
In Senate: — (a) Fortnight's postponement of Senator
Lynch-Staunton's bill to amend Gold and Silver Marking Act
because of considerable opposition of jewellers to provision
asking marking of gold contents on unrolled gold jewellery.
On Tuesday, April 19, Premier Meighen inti'oduced a bill
which virtually issues an ultimatum to the shareholders of
the Grand Trunk Company and the directors to hand over
for operation the entire system to the Dominion Govern-
ment. The government is given power by the new bill to
discharge the present directors and management and substi-
tute its own choice, and the arbitration cf the common and
preference shares will proceed if this is gi-anted by May 16.
Great interest has also attached during the past week
to the proceedings of the special parliamentary committee
on railways and transportation. President Hanna and A. J.
Mitchell, financial comptroller of the Canadian National
lines, appeared before the committee on Wednesday and sub-
mitted various comparative statements so that expenditures
of the road can be properly, scrutinized.
The possibility of the inclusion of a French-Canadian
member in the Meighen Government also occupied the atten-
tion of parliamentarians this week. Deputy Speaker Boivin
occupies a very mystei'ious position, the Liberals declaring
he will not leave them and the government saying that he
has pledged himself to do so, while Mr. Boivin himself would
say only that he had come to no decision.
.Advances to Great Britain
Total rdvances of $949,638,368 were made to Great
Britain by Canada up to the time of the signing of the
armistice, according to a return tabled in the Canadian
House of Commons on April 11. As against that total on
October 31, 1918, repayments, contra-borrowing £'nd refunds
reduced the indeljtedness to $295,10.5,916. Of the amount
advanced by Canada, $190,635,073 was used for the purchase
of agricultural products here, and $759,003,294 for other
purposes, which included purchase of munitions and other
manufactured products, payments of shipment charges, etc.
No advances were made to other allied powers, it was stated,
previous to that date. From October 31, 1918 to February
28, 1921, the total advances to Great Britain were $343,848,-
623, which, by repayments, contra-borrowings and refunds
were reduced to $151,252,146 indebtedness. Total advances
to the allied powers during this same period were $41,325,-
139. The manner in which these advances were expended
was: Great Britain, agricultural products, $197,862,655;
other purposes, $145,985,968. Allied powers, agricultural
products, $15,307,411; other purposes, $26,017,727.
Defeat Reciprocity Motion
The House of Commons on April 13, by a vote of 100
to 79, defeated a motion of W. S. Fielding recommending
the adoption of the reciprocity agreement betw-een Canadg
and the United States which was signed in Washington on
THE M 0 N E T A R Y TIMES
Volume <)(;
Ji.nuai-y 21, 1911. The resolution, submitted as the House
went into the committee of the whole and seconded by W. L.
Mackenzie Kins:, read: "In the opinion of the House, the
government should bring in a measure to approve, ratify
and confirm the agreement respecting reciprocal trade be-
tween the United States and Canada signed at Washington
on January 21, 1911, by the Hon. P. C. Knox on the part of
the United States, and by W. S. Fielding and the late William
Patter.'ion on the part of Canada, which agreement remains
on the statute book of the United States."
smaller vessels of the Canadian Government merchant marine
into the inland lake service for the season. Shippers had
been anticipating lower freight rates on the lakes this year
in view of the lower ocean freight and the need of business
to have every encouragement to ship by lake routes. They
were greatly surprised, however, to find that the Canada
Steamship Lines, Limited, is announcing higher rates. Hence
the demand on the government. It has been practically de-
cided to bring- some of the government ships up to the Great
Lakes. How many has not yet been decided.
Northern Alberta Railways
Three railway companies are seeking authority to pene-
trate the oil reunions of north-west Canada^, and one has al-
ready a charter to do so. Two of these companies, the Slave
River Co., with Calgary capitalists behind it, and the Fort
Smith Railway Co., supposed to be backed by the Hudson's
Bay Co., desire a chapter for the purpose of building a line
across the portage from Smith Landing to Fort Smith on
the Slave River, in order to overcome the rapids and shoal
at this point of the river. The railway committee has asked
these two companies to get together and make some arrange-
ment for asking for the building of one line instead of two
in exactly the same territory for the same purpose.
The other line seeking entrance is the Edmonton and
Mackenzie River Railway, which wants to build a line from
Fort McMurray on the AthabfGca River at the end of the
Alberta and Great Waterways Railway to the junction of
the Jackfish and Peace Rivers, and from there to the point
where the Hay River empties into Great Slave Lake.
It is interesting to note that British ca-pitalists last year
secured a charter to build a line to connect Great Slave
Lake with the Thelon River and the Chesterfield Inlet and
thence into Hudson Bay at a point 1.000 miles north of Port
Nelson and Fort Churchill. The north is coming into its
own. All of these lines are supplementary to the natural
water routes.
The dep&rtnient of trade and commerce has received
notification from Port of Spain, Trinidad, that the new
tariff bill has been passed, giving Canada a preferential
tariff of .50 per cent.
A New Nickel Coin
On April 15 Sir Henry Drayton introduced a resolution
providing for issuing a five-cent nickel coin in Canada.. He
explained that it was proposed to make the coin exactly the
same size as the five-cent piece issued in the United States.
The Canadian coin, would, however, be 100 per cent, nickel
as distinguished from the United States coin, which was
75 per cent, copper and 25 per cent, nickel. A tender of
money in the new coins would be legr..] tender for payment
of an amount not exceeding $5. The resolution also con-
tained a provision prohibiting persons from melting down,
breaking up, or using otherwise than as currency, Canadian
gold coins of current issue. The resolution was reported and
a bill based on it given first reading.
Grand Trunk Guarantees
The Dominion is paying interest amounting to about
.$246,000 this month on the 4 per cent, debentures guaranteed
under the agreement with the Grand Trunk Railway Co. The
total amount of the 4 per cent. Grand Trunk debenture stocks
is $24,624,455, and it is on part of this amount that the in-
terest falls due this month. Sir Henry Drayton, when asked
on April 15 if this were the same amount as that which the
government refused to pay at the beginning of April, replied
in the negative, saying that the government was meeting
all its obligations under the agreement and would continue
to do so. The government did not consider that it was liable
for the former amount.
Use Vessels on Inland Waters
On account of the rise in freight rates on the Great
Lakes for the season just about to commence there is a
growing pressure on the government to bring some of the
MERCHANTS BANK MAKES FOREIGN CONNECTION
The Merchants Bank has become affiliated with and is
to be the Canadian representative of the New International
Acceptance Bank, which has been organized in New York
with a capital and surplus of $15,000,000. The new Accept-
ance Bank opened its doors at .31 Pine Street, New York,
on the 19th instant, and its organization provides for the
financing of foreign trade.
BANK OF HAMILTON MEETING
At the annual meeting of the Bank of Hamilton, held
on April 18, last year's directors were re-elected as follows:
Sir John Hendrie. president; Cyrus X. Birge, vice-president;
H. S. Ambrose, W. E. Phinn, J. Turnbull, C. C. Dalton, I.
Pitblado, K.C., W. A. Wood, Robert Hobson, W. P. Riley and
A. V. Young. Following the meeting of the shareholders
there was unveiled in the head office of the bank a bronze
memorial tablet commemorating the names of the institution
employees who made the supreme sacrifice in the great war.
Major-General Hon. S. C. Mewburn, the ex-Minister of
Militia, officiated and was assisted by Lieut.-Col. Hooper,
D.S.O., M.C., who severed the cord, which held a giant
Union Jack in front of the tablet.
The annual statement, recently reviewed in these
columns, showed profits of $888,018 up until February 28.
The reserve fund totalled $4,849,110, including $649,110
placed to its credit during the year. The bank's assets have
reached a total of $85,348,503. "
NOVA SCOTIA TRUST CO.
A good increase in business is reported by the Nova
Scotia Trust Co. for 1920. Estates, trusts and agencies un-
der administration are shown at $3,198,125, as compared
with $1,010,708. Net profits, however, show but about $1,000
increase at $27,725, after allowing for expenses of manage-
ment, directors' fees, etc.
The usual dividend of 7 per cent, was paid, but nothing
w;;.s transferred to reserve. There was a balance of $6,559
carried forward, as compared with $912 in 1919.
Among the principal changes in the capital account, ac-
counts receivE'ble is the most prominent, the figure being
$156,675 as compared with $80,394 previously, while invest-,
ments are given at $92,374, as against $179,427 in 1919. The
subscribed capital of $240,000 is now fully paid up, while
the reserve fund stands at $40,000, which is the same as
previously reported.
An action of the Royal Bank against Rice and Whaley,
Ltd., was dismissed by Judge Prudhomme in Winnipeg on
April 4. The defendants guaranteed the account of Thomas
Beddome, a cattle buyer, with the Royal Bank, at Saltcoats,
to the "net amount of two cars of stock." The bank paid
the checks of Beddome, drawn in payment of the cattle pur-
chased, and drew on Rice and Whaley for the amount. When
the stock was sold the proceeds amounted to less than the
draft, and the smaller amount was paid to the bank, which
sued for the balance of $273.80.
April 22, 1921
THE MONETARY TIMES
iilmtetarj Simes
Trade Review and Insurance Cbronicle
0f Canada
Addri-ss: Corner Church and Court Streets, Toronto, Ontario, Canada.
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The Monetary Times does not necessarily endorse the statements and
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PRINCIPAL CONTENTS
Editorial; page
Dominion Insurance Act Amendments 9
The Stock Market and Business 10
International Defaults Have Been Common 10
A Gamble on the Weather 10
Special Articles:
Stocks Depressed by Unfavorable Statements 5
The Week in Parliament 7
Western Cities Have High Tax Rates 6
Short and Long- Term Rural Credits 14
\e\v Brunswick Will Practice Economy 18
Alberta Municipal Assessments Too High 20
Prince Edward Island Budget 22
Damage When Goods Lost By Carriers 26
Collecting Interest in New York Funds 26
Fire Insurance Case 26
Nova Scotia Revenue and Expenditure 42
Monthly Dep.\rtments :
Building Permits 24
Government Currency 24
Weekly Departments:
News of Industrial Development in Canada 28
New Incorporations 30
Insurance Licenses and Agency Notes 30
News of Municipal Finance 32
Government and Municipal Bond Market 34
Corporation Securities Market 38
The Stock Markets 40
Corporation Finance 42
Recent Fires 44
DOMINION INSURANCE ACT .VMENU.MENTS
D'
I.SCUSSIONS of proposed changes in the Insurance Act
of Canada wliich have been taking place for some time
past have been crystallized in a draft amendment now under
consideration. All branches of insurance are affected. Some
[' of the proposals, including tliat to permit life companies to
write fire and casualty business, and vice versa, and that
to require all agents to be approved by the superintendent
I'l' insurance, have been discussed in these columns. Another
which has E.roused keen opposition in industrial circles is
the clause proposing to levy a fifteen per cent, tax on pre-
miums paid to unlicensed insurance companies. The draft
amendment is as follows: —
1. That section eight bo repealed, anil in lieu thereof
it be enacted that the license authorizing a company to carry
» on business may authorize the transaction of sucji class or
ilnsse.-i of insurance as the Minister may deem proper; but,
-iiliject to the renewal of licenses previously granted,
si paiate and distinct funds must be maintained by a com-
pany receiving a license for life insurance in combination
J with any other class of insurance.
2. That any Canadian life insurance company, and any
ntlier life insurance company licensed under the Act, whose
charter authorizes it, may issue life policies, including in the
same policy insurance against disability caused by accident
or sickness, but that provision be made to limit the amount
of such disability insurance.
. 3. That section nine of the said Act, relating to the
I granting of licenses where the charter of the company
nuthorizes an excess number or variety of classes, and sec-
iin ten, relating to excess deposits, be repealed.
4. That section thirteen be repealed, and in lieu thereof
it be enacted that a contract of life insurance shall not be
combined is one policy with a contract for any other class
of insurance.
5. That in every annual statement required to be filed
by sections thirty, thirty-one and thirty-two of the Act, the
bonds, debentures, stocks and other securities shall be taken
into account at the market values applicable to the said
securities at the rate of the statement; but that provision be
made for temporary depression of the market values by rea-
son of serious disorganization of security markets.
6. That section sixty be amended to provide that no
loans of its funds may be made by a life insurance company
to any director or officer thereof, or to any agent or other
employee thereof whose remuneration is in excess of five
thousand dollars per annum, or to any member of the family
of such director, ofllcer. agent or employee.
7. That section seventy-seven, respecting the enlarge-
ment of the license on the authority of the Treasury Board,
be amended by making fuller provisions respecting separate
and distinct funds to be maintained in respect of the class
or classes of insurance, and the liquidation or winding-up
thereof under the said .A.ct or the Winding-up .A.ct.
8. That provision be made for the approval of agents
or brokers by the Superintendent before any commission or
remuneration is paid to them for soliciting for, or obtaining
applications or proposals for insurance, or for collecting
premiums from policyholders, and that notice of disapproval
by the Superintendent be given in writing to the company
afl"ected after an investigation by a Board of Inquiry, with
right of appeal from the disapproval of the Superintendent
to the Treasury Board.
9. That sub-section two of section one hundred and
twenty-nine, relating to annual returns of insurance in un-
licensed fire insurance companies, be amended by adding the
provision that in the case of any insurance against fire on
property situated in Canada effected in any unlicensed com-
pany, the person effecting such insurance shall pay to the
Minister of Finance for Consolidated Revenue Fund a sum
equal to fifteen per cent, of the total net cost of such in-
surance so effected, but not to exceed in any case fifteen
cents for each one hundred dollars o' insurance for one
year or a proportionate sum for any longer or shorter period.
THE [MONETARY TIMES
Volume 66
INTERNATIONAL DEFAULTS HAVE BEEN COMMON
SOME years ago Canadian bond dealers could boast that
not a dollar invested in our government or municipal
bonds had been lost. There were, in fact, few cases of muni-
cipal defaults until last year, but now the list is increasing
almost every month, and thei-e are numerous cases of delay
in meeting payments. Thus far, however, the credit of the
Dominion and provincial governments have not been injured
by failure to meet their obligations promptly, although the
present experience of holders of western municipals is bound
to affect the credit of Canada as a whole.
There is no basis in history for assuming that because
a security is a public one it is perfectly safe. Municipalities
in other countries have sometimes failed to meet their debts,
and there are a few cases where governments havie done like-
wise. A report just issued by the British Council of Foreign
Bondholders states that English holders have lost $9,000,-
000,000 in this way. This council is composed of British
bankers and financiers, and has existed for over fifty years
for the purpose of forcing defaulting states to meet their
indebtedness. Foremost among defaulting states stands
Russia, which owes England $8,250,000,000, plus $1,200,000,-
000 for arrears of interest. Mexico has defaulted to the
extent of $27.5,000,000 principal, plus $85,500,000 interest.
Third in the list are southern States of the United States of
America, owing England $6,000,000, plus $144,000,000 an-ears
of interest, accumulated during periods varying from forty
to seventy years. The defautling States are Alabama, Ar-
kansas, Florida, Georgia, Louisiana, Mississippi and North
and South Carolina. In addition, there is still outstanding
$12,500,000, plus interest, advanced to the Confederate States
in 1863 as a 7 per cent, cotton loan. Last September final
arrangements were made with West Virginia for the settle-
ment of her debt to British bondholders after twenty-two
years' negotiations.
Other States that have defaulted to British bondholders
include Argentina, Ecuador and Honduras. The council
praises the Nicaraguan Government for carrying out its obli-
gations ahead of the time they matured.
THE STOCK MARKETS AND BUSINESS
THAT Riordon common stock, which only last Friday was
worth 107, should be selling at a.bout 40, will come as a
shock to holders of this and other stocks. Last July the
stock was worth 226, since when it has fallen off by 85 per
cent. On the days of greatest decline there has sometimes
been a spread of several points between consecutive sales,
indicating that there is more than the usual bearish in-
fluence back of the movement.
This decline, while it is the most spectacular which has
taken place on the Canadian exchanges in resent years, is
nevertheless no more than an exaggeration of the movement
of the market as a whole. The trend of stock prices in
Canada, following the leadership of New York, has been
steadily downward for the past seventeen months, with oc-
casional recoveries. Speculators have found their margins
wiped out over night, while investors have found the market
values of their holdings reduced to lower and lower levels,
accompanied frequently by loss of dividends and in a few
cases by refinancing which placed their stocks in an inferior
position. A comparison of the industrial and the investment
fields would, however, indicate that the latter is not faring
any worse than the former. Always more sensitive in anti-
cipating a change in business conditions, stock prices com-
menced to slip back at the end of 1919, fully six months
before any falling off in the volume of business was noticed.
What was discounted by the stock market proved to be true
in the industrial field, and the continued downward move-
ment leads to the conclusion that the business depression will
be both long and severe.
A reference to the average prices of Canadian stocks on
page 5 of this issue will show that during the past three
months there has been a firmer tendency. The decline in
New York has also been easing off. Whether this is the be-
ginning of a more stable period in the stock markets and in
industry, or whether it is a temporary halt in the pro-
cess of deflation, cannot be definitely stated.
A GAMBLE ON THE WEATHER
THE United Agricultural Association of Medicine Hat dis-
trict has entered into a contract with "Rainmaker"
Hatfield, under which, if four inches of rain shall fall be-
tween May 1 and August 1, 1921, Hatfield is to be paid
$8,000. He is to be given credit for one-half of the pre-
cipitation at $4,000 per inch up to a maximum of four inches;
in other words, if four inches of rain falls, Hatfield gets
credit for two inches and receives $8,000, while Providence
is to get credit for the other two inches. In order to carry
out his part o*^ the contract "Rainmaker" Hatfield is 'to
"construct and build a rain .precipitation and attraction
plant" at a suitable location, also rain gauges.
Prof. E. S. Hopkins, of the School of Agriculture, Olds,
Alta., speaking at the Soil Fertility Conference of the Com-
mission of Conservation at Winnipeg in -July last, showed
from records of 36 years duration that during tnis long
period the average precipitation at Medicine Hat for what
is known as the growing season, May, j'une and July (the
period covered by the Hatfield contract) was 6.14 inches.
This average includes the three dry years, 1917, 1918 and
1919. Wafer-Powers of Manitoba, Saskatchewan and Alberta,
published by the Commission of Conservation, in 1916, states
that the average precipitation for the same three months for
a period of 29 years preceding 1914, was 6.35 inches.
Hatfield, in securing such a contract from the Medicine
Hat farmers, is therefore gambling on fifty per cent, better
than an even chance.
British capitalists are reported as being behind new
railway ventures for the northwest. Considering their past
experience with Canadian railways it would seem that in
the investment as in other fields the English do not know
when they are beaten.
*****
The Dominion government's holdings of gold decreased
more in March than did the notes outstanding. Some of
that gold which is supposed to be embarrassing Washington
would not embarrass Ottawa.
New Brunswick's plan of playing safe in new financing
is the only one which will tide it through a difficult period.
Considering their handicaps the record of the maritime pro-
vinces and municipalities is distinctly better than that of
the west.
THE INCOME TAX EXPLAINED
Two sweet young things at the movies last night didn't
seem to care for the picture, for they spent the entire time
in conversation. One of them was inclined to complain about
everything and everybody. The other was one of the "ex-
plainers," who can interrupt everything. Here's a sample
of her marvelous intellect : —
"I can't see why we have to pay these extra pennies
every time we go to a movie," number one complained.
"Oh, you see, the government is responsible for that,"
number two explained. "You've heard of the income tax,
haven't you?"
Number one admitted that she knew there was such a
thing.
"Well, that's it. Every time we come in a picture show
we have to pay an income tax."
April 22, 1921
THE MONETARY TIMES
Over 530 Branches
T
HIS Bank has 525 branches
foundland as well as those in
London, England, Mexico City,
Havana, Cuba, Kingston,
Jamaica, Port of Spain, Trini-
dad, San Francisco, Seattle,
Portland, Ore., and the New
York Agency.
We can offer you, therefore, ex-
cellent service in collecting your
Canadian and foreign accounts.
THE CANADIAN BANK
OF COMMERCE
Head Office
Paid-up Capital
Reserve Fund
$15,000,000
$15,000,000
When You Remit Money
For remitting money anywhere,
Bank Drafts and Money Orders
are without equal for safety, econ-
omy and convenience.
if you wish to send money abroad, a
draft from this Bank will prove to be
the best medium. For remitting sums
up to fifty dollars in Canada, Bank
Money Orders are the most con-
venient.
Ask at this Bank for any further
details.
IMPEKIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais. Lloyds and
National Provincial Foreign Bank, Limited.
File Your Income Tax
Returns
The Income tax for 1920 of Cor-
porations and Joint Stock Com-
panics must be filed with the
Dominion (jovernment on or
before April 30, 1921. The
Government this year requires
you to forward a cheque with your
return for 25;; of the ta.v due.
UNION BANK OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE . TORONTO. ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55, OLD BROAD STREET. E.C,2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
G. R. Marnoch, president of the Lethbridge Board of
Trade for the past seven and one-half years, has resigned.
W. J. DOHERTY, foi-merly of Graham, Sanson and Com-
pany, and more recently connected with McConnell and
Ferguson, advertising agents, Toronto, has joined the Cana-
dian Debentures Corporation, Toronto, as advertising
manager.
W. Sturgis Macomber, who for several years has been
interested in the placing of Canadian securities in the United
States, has become associated with the firm of Carruthers,
Pell and Company, of 15 Broad Street, New York. Mr.
Macomber will have full charge o' the Canadian department
of the above named firm.
Kenneth Thom has been appointed assistant fire man-
ager of the Employers' Liability Assurance Corporation,
Limited. Mr. Thom has had a long and wide experience in
fire insurance in Canada having been for over 20 years with
the Union Assurance Society rising to the position of On-
tario inspector which position he resigned to go into partner-
ship with D. C. Edwards, of Toronto, as a fire adjuster under
the name of "Edwards and Thom."
J. P. Dougherty has been
azetted inspector of insur-
ance for the pro-
vince o f British
Columbia. Leo
Dougherty, son of
the newly appoint-
ed official, will in
future have charge
of the insurance
firm of Dougherty,
Limited, in the
London Building,
Vancouver. Before
coming to British
Columbia Mr.
Dougherty lived at
Hamilton, Ontario,
where he occupied
a high place in the
business world. He
is regarded as an
e.xpert in insurance,
and news of his
appointment has
been favorably
commented upon by
leading- underwrit-
ers. He was a
member of the executive of the Vancouver Fire Agents' As-
sociation.
Fred W. Field. British government trade commissioner
in the province of Ontario, who left at the beginning of last
October to confer with the Department of Overseas Trade
in London and manufacturers and merchants throughout the
British Isles, ha-s returned to Canada. Mr. Field was inter-
viewed by five hundred and twenty-eight manufacturers in
twenty-seven towns and cities, and he paid a visit to over
fifty plants and also to a number of shipping companies and
docks in order to ascertain conditions in shipping to and
from Canad?,'.
J. H. HoDGINS, manager of the statistical department of
the Union Bank of Canada, at Toronto, has been transferred
to the head office of the bank at Winnipeg to direct the new
publicity department. Fifteen years' newspaper training, in-
cluding specializing in financial journalism, pai-ticularly
fitted Mr. Hodgins for his work v.'ith the Union Bank of
Canada. Mr. Hodgins joined the bank five years ago when
the New York agency was first established. Following his
work in New York City he was transferred to Toronto where
the statistical work for Canada was carried on.
Gavin N. Houston, at present acting commissioner of
irrigation with the Dominion government reclamation service
at Calgary, has been appointed a member of the Alberta ir-
rigation codncil under the new act passed at this session of
the legislature. Mr. Houston will be named as secretary of
the council and will devote his entire time to that work. An
office will be opened in Lethbridge, where Mr. Houston will
have his headquarters, within the next month, as soon as
Mr. Houston can wind up his pi'esent duties. L. C. Charles-
worth, the present chairman of the irrigation council, who
has been appointed deputy minister of railways and tele-
phones for the province, will still continue as chairman of
the irrigation council.
OBITUARY
F. S. Farris, provincial manager of the Excelsior Life
Assurance Company for New Brunswick since 1908, died at
St. John, last week.
BANK BRANCH NOTES
The Canadian Bank of Commerce has opened a branch
r.t the corner of Queen St. and University Ave., Toronto.
The Molsons Bank has opened a branch at New Germany,
Ont.
The Imperial Bank of Canada announces the opening
of a branch at Haiding, Man.
The Merchants Bank of Canada have purchased the
premises on Dundas St., London, Ont., now occupied by the
London Advertiser office.
The Imperial Bank have moved into their new quarters
at Amherstburg, Ont.
C. G. Walker, manager of the Bank of Nova Scotia at
Petrolea, Ont., has been appointed manager at Sudbury.
The Union Bank of C&nada announces the following staff
changes and appointments as managers: J. Mitchell, at Mc-
Nutt, Sask.; N. Baxter, McNutt, at Jansen, Sask.; T. R.
Griffiths, of Milestone, at Weyburn; W. A. Tripp, of Morse,
at Milestone, Sask.; W. R. Edwards, of Sceptre, at Morse,
Sask.; Geo. Branston, of Hazenmore, at Sceptre, Sask.; H.
S. Richardson, of Shaunavon, at Hazenmore, Sask.; C. P. Old,
of Loverna, at Roblin, Man.; J. R. Rowlay, of Calgary, at
Acadia Valley, Alta.; A. E. F. MacLean, of Kindersley, at
Estevan, Sask.; N. C. Hunter, of Pense, at Kindersley, Sask.;
S. M. Simons, of Sintaluta, at Pense, Sask.; R. F. Stewart, of
Swift Current, at Sintaluta, Sask.; Wm. Michie, of Outlook,
at Loverna, Sask.; A. H. O'Keefe, of Webb, at Outlook,
Sask. A. G. Ross, formerly inspector for Manitoba branches
of the Union Bank of Canada, has been appointed assistant
to the superintendent of western branches for the southern
Manitoba division. G. M. Proud, inspector, Edmonton, has
been appointed assistant to the western superintendent. A.
F. S. Tatum, inspector, Calgary, has been appointed an
assistant to the superintendent of western branches, for
southern Alberta division. E. J. Roycroft, formerly an assist-
ant to the western superintendent, has been appointed in-
spector at Calgary.
The Union Bank of Canada wish to announce the fol-
lowing: F. M. Upham, former eastern inspector, has been
appointed manager of the branch at Brampton, Ont. A. P.
Nasmith, assistant manager of the main office in Winnipeg,
has been appointed manager at Medicine Hat, Alta. A. A.
Walcot has been appointed assistant manager at Winnipeg.
E. H. Floyd, audit officer of the Manitoba Division, has been
appointed acting manager of the Melita, Man. branch. A.
B. Dargavel has been appointed manager of the branch at
Ogema, Sask.
April 22, 1921
THE MONETARY TIMES
13
, The Sterling Bank ,
I OF CANADA |
III iNiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiNiiiiiiimiiiiiiiiiiiiiiiiiiiiiniliiiiiniiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiNR
An efficient investment service is provided Sterling
Bank clients through our Bond Department. Besides
transacting all Bond business, it has always on hand
a selection of the highest grade securities obtainable.
Head Office
KING AND BAY STREETS, TORONTO
LONDON JOINT CITY AND
MIDLAND BANK LIMITED
The Right Hon. R. McKENNA
Subscrtbed Capital - £38.116,060
Paid-up Capital - ■ - 10,859,800
Reserve Fund- - - - 10,859,800
Deposits rte J><'. '9-'f>/ - -371,841,968
HEAD OFFICE : S. THREADNEEDLE STREET. LONDON. E-C
OVERSEAS BRANCH . 65 » 66. OU) 8R0AD STREET. LONDON. EC 2.
The National Bank of Scotland
Limited
Incorpor.iti-d by Royal Charter ar.d .Act of I'.irh.mum 1:staiilishh. ISJ.i
Capital Subscribed ;{;.S,0()0 000 »2.S,000.000
Paid up 1. 100. 000 .S. 500.000
Uncalled 3.900.000 I9,.S00.000
Reserve Fund I.OOO.ooo .StliiK.dOO
Head Office - EDINBURGH
WILLIAM CARNKGIE, General Mnnager. OKOKGE A. HUNTF.K. Set
LONDON OFFICE-37 NICHOLAS LANK. LOMHARD ST.. E.C 4
T. C. RIDDELL. DUOALD S.MITH.
Manager Assistant ManaRer
The aRcncy of Colonial and Foreifin Banks is undertaken, and the Accep
tances of Customers residing in the Colonics domiciled in London are retired
on terms which will be furnished on application.
faoorporatdd
Branch«3
COkTICAdcl
^^Wl^;
THE MOLSONS BANK
Capital and Reserve
S9.000.000
Over I3U Bh;
NCHES
Without the assistance o
the banks, business
would come to a standstill.
One of the chief tunc-
lions of The Molsons Bank
is to help the business
man or manufacturer to dt
) more business.
FDWARD C. PRATT,
General Manager „ ,,,
Commonwealtb Bark of australia
All classes of GENERAL ANU SAVINGS BANK business are trans-
acted in all the principal cities and towns of Australia. Rabaul and
London.
Banking and exchange business of every description transacted within
the Commonwealth. United Kingdom. Canada. U.S.A.. and Abroad.
JAS KRIX.
Deputy Gn
DKN'ISON MILLER.
GBonUB EOWAROS, F.C.A. Akthu
H Percival Edwards \V. Posierov MoRCA.^
A. GEOFFRBy El>WARDS OsWALD N- HOW
T. J. .Macnamara T. p. Geocie
DS
K. A. .Ma
W. A. Lo
. Edwards. F.C.A.
W. Herbert Thou
Charles E. Whit
J. L. Atkinson
.loHN .\1. Edwards
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORO.NTO ..
CALG.^RY . .
VANCOUVER
WINNIPEG ..
MONTREAL
CORRESPONDENTS
HALIFAX. N.S. ST. JOHN. N.B.
LONDON, ENG PARIS, FRANCE
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRU: RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK. USA.
YOUR WIFE
Has probably not had the Business
Experience necessary to handle the
intricate problems which will arise in
the settling of your estate and it is
unfair to impose such duties on a
friend or relative in these days of
high business pressure.
The logical Executor, therefore, is a
conservative Trust Company — which
will act alone or in conjunction with
your wife, or relative, or friend.
We invite correspondence and per-
sonal interviews on this important
matter.
THE BANKERS
TRVST CDMB\NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Bailding in each city
THE MONETARY TIMES
Volume 66
Short and Long Term Rural Credits*
Former are Supplied by Banks, While Loan Companies and Mortgage Loan Associations
Finance Permanent Improvements — Bank Act Revision in Light of Changing Requirements
By J. L. CLARKE,
Manager, Rural Service Department, Merchants Bank of Canada
IN dealing with the subject of rural credits it must be
borne in mind that cfedit is. divided into two distinct
classifications, viz.: —
First. — Short-term credit, being money required for
temporary agricultural purposes such as, paying the cost of
the season's farm operations, which includes a purchase of
seed grain, wages, the breaking and clearing of land, harvest
and threshing expenses; the purchase of machinery, repairs
and replacements; to pay fire, life or hail insurance premiums;
the purchase of feed for live stock; loans for the purchase of
feeding cattle, hogs or sheep to be fattened for market; the
purchase of pure bred sires and breeding live stock.
Loans for the foregoing purposes are available from
the Canadian Chartered Banks, provided the applicant for
the credit can show his ability to repay the bank within a
short time, usually within one year, and his statement of
assets and liabilities prove that he is entitled to the loan.
Second. — Long-term credit. Money borrowed for capital
expenditure, such as the purchase of land, building of houses,
barns, silos and other improvements of a permanent nature
on the farm.
Loans for the foregoing purposes are obtainable from
mortgage, trust, and investment companies and from the
farm loans associations. Repayment of such loans to be made
annually covering a term of years, security being given to
the lending companies by a mortgage on the farm.
Farmers should apply their own capital for the original
purchase of the farm equipment, such as work horses and
the necessary machinery.
The Bank Act as Regards Agriculture
The Canadian Chartered Banks are operating under
Federal authority, known as "The Bank Act of 1913," which,
as far as agricultural interests and the livestock industry
are concerned, provide for the financing of production and the
handling of farm products, particularly defined in the Bank
Act as: — "Products of the soil, such as hay, grain, roots,
vegetables, fruits and other crops, includes milk, cream,
butter, cheese, poultry, eggs, hides, skins and wool, and dried,
canned and preserved vegetables and fruits." (Grain is de-
fined as "wheat, oats, barley, rye, and flax.")
The Bank Act stipulates that — "The bank may lend
money to any dealer in products of agriculture or to any
wholesale purchaser or shipper of or dealer in live stock or
dead stock, or the products thereof, upon the security of such
products, or of such live stock or dead stock or the products
thereof." "The bank may lend money to a farmer upon the
security of his threshed grain grown upon the farm."
In applying to a bank for a loan the farmer should con-
fine his requests for financial assistance along the lines de-
fined; any loan necessary to assist in production is con-
sidered legitimate as set out in the first classification which
is considered to be within the meaning of the Bank Act.
Under the act the banks are authorized to — "Deal in,
discount and lend money and make advances upon the security
of, and take as collateral security for any loan made by it,
bills of exchange, promissory notes and other negotiable in-
struments, or the stock, bonds, debentures and obligations
of municipal and other corporations, whether secured by
mortgage or otherwise, or Dominion, provincial, British,
foreign and other public securities." "Engage in and carry
*Part of an address before a farming conference, Saska-
toon, April 12-14.
on such business generally as appertains to the business of
banking."
What the Banks Cannot Do
"Except as authorized by the act, the bank shall not
directly or indirectly — deal in the buying or selling of goods,
or engage in any trade of business whatever; lend money or
make advances upon the security of lands, tenements or im-
movable property."
A bank may hold property for its own use and occupa-
tion. It may take a mortgage on real estate or personal
property by way of additional security for a debt already
contracted. No bank, however, is allowed to hold such pro-
perty for a longer period than twelve years. Power is
given the banks to advance money on warehouse receipts
and bills of lading.
The chartered banks have been a mighty force in assist-
ing in the development of western Canada and in extending
national prosperity. They have become the "silent partners"
in the agricultural life of the country.
Loanable Funds; Bank Reserves
The banks accept money on deposit from the public.
Their duty is to loan and invest these funds safely for pro-
ductive purpose and to keep these funds in such shape that
any demands coming from the depositors may be readily
and promptly met without causing undue hardship upon the
borrower. Thus short-term loans must comprise the bulk of
their investments. In their own interests they maintain
certain reserves in order to meet promptly such demands.
In Canada the banks are permitted to use their own judg-
ment as to the amount of legal money which they shall hold
by way of reserve in their vaults. Lending banks in other
countries are obliged by law to adopt the principle of com-
pulsory reserves. The only regulation laid down in the
Bank Act which is compulsory is that 409f of the reserves
that each bank's self-interest requires it to keep, shall be in
Dominion notes. The Canadian system of voluntary reserves
has worked out well. Legal minimum reserves impede, in-
stead of helping, a bank's operations in times of a crisis or
monetary stringency. When it is found that loans can be
secured on good collateral, confidence is soon restored and
the banks can gradually replenish their reserves as business
conditions become easier. The good judgment of the banker,
and the holding of sound, short-term paper, will provide a.
steady stream of payments to the bank, which are worth more
than reserves of legal money. The fact that the banks are
not allowed under the act to loan money against real estate
naturally has a tendency to keep its assets in readily ac-
cessable form.
In the usual course of business with farmers part of the
bank's assets become "tied-up" or "frozen," due, usually, to
unforeseen uncontrollable conditions — caused by boiTowers
failing to keep to the terms of their contract as to the time
of repayment. Money advanced for the season's operations
are intended to be repaid as soon as the crop is threshed and
marketed. Occasionally, the borrower thinks that he can
make money by holding his grain over until the following
June, and sometimes he is determined to do so. The original
terms of the loan called for repayment "in the fall after the
freeze-up," and the banker planned his business to receive
payment at the time specified, not "until wheat goes to
$2.50 a bushel" (which the farmer is advised by different
parties wheat will be worth that price in May or June, if he
(Continued on page H)
April 2-2, 1921
THE MONETARY TIMES
THE ROYAL BANK OF CANADA
Statement to the
Dominion Government (Condensed)
31st March, 1921
MONTREAL
LIABILITIES
i
Capital Paid Up
$20,299,140.00
Reserve Fund
20.216.575.00
Undivided Profits
546.923.20
Notes in Circulation
36.071,847.74
Deposits
433.332.761.57
Due to Other Banks
13.926.032.03
Bills Payable (Acceptances by London Branch)
6.515.513.35
Acceptances Under Letters of Credit
12.839.353.26
$543,743.15115
ASSETS
Cash on Hand and in Banks
$25,188,078.43
Deposit in the Central Gold Reserves
19.000.000.00
Government and Municipal Securities
32.137.105.20 1
Railway and other Bonds. Debentures and Stock
14.710.514.56
Call Loans in Canada
16.045.969.41
Call Loans elsewhere than in Canada
34.597.M6.98 '
$241,673,714.53
Loans and Discounts
277,640.870.72
Liabilities of Customers under Letters of Credit
as
per Contra
12.839.353.26
Bank Premises
9.705.809.96
Reil Estate other than Bank Premises
981. 557. to
Mortgages on Real Estate sold by the Bank
41.844.83
Deposit with Dominion Government for Security
of
Note Circulation
860.000.00
$543,743,151.15
727 BRANCHES IN CANADA. NEWFOUNDLAND. WEST INDIES
CENTRAL and SOUTH AMERICA, also LONDON. NEW YORK
and BARCELONA
Paris Auxiliary— THE ROYAL BANK OF CANADA (France)
-HomeBankofCanada-
BONDS AND FOREIGN EXCHANGE
Every Branch of the Home Bank is in ready
communication with the Bond and Foreign
Exchange Departments at the Head Office, and
any enquiries made through any branch will
receive prompt attention.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s-n
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
head office. weybur.v. saskatchewan
Branches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midale
GrifEn, Colgate, Panginau, Radville, Assiniboia, Benson,
Verwood. Readlyn, Tribune, Expanse, Mossbank, Vantage,
Goodwater. Darmody, Stoughton, Osage, Creelman, Lew-
van, Fronde and Ardill.
A GENTiRAL BANKING BUSINESS TRANSACTED
H. O. POWELL. General .Manager
TH€ MCRCHANTS BANK
Head Oftice : Montreal. OF CANADA, Established 1 864.
Capital P.id-up $10,029,622 Reserve Funds and Undivided Profits, $9,475,585
Total Deposits (31st January, 1921) $152,211,354
Total Assets (3l5t January, 1921)
$186,528,254
Board of Directors .
ident
SIR H. MONTAliL' ALL.AN
.Sir F. Ork Ork-Lewis, Bart.
Hon. C. C. Ballantyne
Farquhar Robertson
Geo. L. Cains
Alkkeu B. Evans
TilUMAS Ahearn
Lt.-Col. J. R. MOODIE
V'lce-I^resident
Hon. Lorne C. Webster
E W. Kneeland
Gordon M. McGregor
F. HOWARD WILSON
John Baillir
Norman I. Dawes
Ross H. McMasthr
General Manager - - - DC. Macarow
Supl. of Branches and Chief Inspector : T. E. Mkkrett
General Supervisor ... W. A. Mei.dri;m
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 38 Wall Street : W. M. Ramsay and C. J Crookall, Agents
London, England, Office, 53 Cornhill : J. B. Donnelly, D S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
THE MONETARY TIMES
Volume 6G
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended April 15, 1921.
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
O
<y
s
<
Apr.
15 .
...15
lb
4
1
Apr.
8 .
...19
10
0
■i
Apr.
1 .
.. . 9
17
1
1
Mar.
25 .
. . . 9
lo
0
0
n
o
H
0
0
43
IS
0
0
2
0
41
10
0
. 5
0
0
36
9
5
2
2
0
35
13
COBALT ORE SHIPMENTS
The following are the shipments of ore from Cobalt
Station for the week ended April 15: —
La Rose Mine, 125,886. The total since January 1 is
2,246,397 pounds or 1,123.1 tons.
SPRING BUSINESS IS APATHETIC
R. G. Dun and Co.'s Rcviczv of April 23 will say, re-
garding business in the Montreal district: With the first
arrival of a regul&r ocean liner on Friday, the 22nd, the
opening of navigation has been formally established, and it
is hoped will have the usual effect of giving some impetus to
business. First incoming steamers are not bringing very full
cargoes, it is said, but a f&ir amount of outward freight is
offering, including a considerable number of cattle, and some
revival is looked for in that line, which in years gone by was
a prominent feature of the export trade from this port. In
general trade conditions there is little varia.tion since a week
ago. Dry goods travellers report customers apathetic with
regard to fall lines, preparing to await future price develop-
ments, but business in sorting lines is fairly active. The
moderately improved conditions recently noted in the boot
and shoe trade are maintained, and there is consequently a
little more doing in leather. Conditions in the fur trade are
somewhat discouraging, and travellers who have completed
the first trip of the year, ca-rrying samples of heavy goods
such as men's coats, robes, cloth caps, mittens, etc., report
o:enerally that orders are very short of an average. It is
hoped that next trip with the finer lines of ladies' goods
will prove more encouraging. Groceries are moving fairly
in modera.te lots, and revised quotations are rare. Refiners
prices for standard granulated sugar remain at 11 cents.
Stocks of rice are said to be large, &nd there is some disposi-
tion to shade quotations. All standard makes of soaps are
again reduced this week.
Toronto conditions are outlined as follows: The refer-
endum was responsible for a temporary dislocation of busi-
ness in the early part of the week but prospects of fine
weather stimulated retail trade and merchandise such as dry
goods, boots, shoes and men's wear moved satisfactorily.
Wholesalers, since buying in quantity has ceased, promptly
feel the effects of public purchasing a-s a rush of small
orders follow every flurry. Jobbers watch the cotton market
closely and in some instances are dubious about the advis-
ability of placing orders without some reasonable under-
standing regarding maintenance of price. Clothing manu-
facturers absorbed a fair amount of woollens recently. One
authority states that a foreign maker found demand so good
that allotment was found necessary and also intimated that
prices on these goods very nearly approached 1915 figures.
English we&vers have certainly modified their views regard-
ing values and some criticism of quality is to be heard oc-
casionally. The mptal trades are still quiet. Building is
more active and the city architect's department experienced
the busiest day on record last week. Mid month permits
totalled in value $1,432,000. A couple of branch ba.nks, 235
brick dwellings, 287 garages and 20 stores formed the bulk
of the work.
EXCHANGE QUOTATIONS
Quotations of exchange on European countries and the
United Sta-tes as at April 21, 1921, with comparisons, are
given below. The Canadian figures are supplied by the
Imperial Bank of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
Can., Apr. 14. Can., Apr. 21. N.Y., Apr. 21.
London, cheque . . 441.50 442.00 392.50
France 8.01 8.28 7.33
Germa.ny 1.83 1.76 1.52
Belgium 8.38 8.45 7.45
United States ... 12iii« P- 12i%2 p.
RAILROAD EARNINGS
The following are the approximate gi-oss earnings of
Canada's transcontinental railways for the period ending
April 14:—
Canadian Pacific Railway.
1921. 1920. Inc. or dec.
April 7 $3,179,000 $3,617,000 — $ 438,000
April 14 3,083,000 3,635,000 — 552,000
Canadian National Railway.
April 7 $2,103,435 $1,834,118 + $ 269,317
April 14 1,874,815 1,818,934 -I- .55,881
Grand Trunk Railway.
April 7 $1,802,346 $1,982,648 — $ 180,302
April 14 1,670,960 1,459,147 + 211,813
WEEKLY BANK CLEARINGS
The following are the bank clearings for the week ended
April 21, 1921, compared with the corresponding week last
year: —
Week ended Week ended
April 21,'21 April 22,'20 Changes
Montreal $115,119,273 $121,204,311 — $ 6,085,038
Toronto 104,842,305 110,539,556 — 5,697,251
Winnipeg 44,940,182 46,053,795 — 1,113,613
Vancouver 15,577,924 17,386,905 — 1,808,981
Ottawa 7,338,136 9,328,800 — 1,990,664
Calgary 6,876,455 8,321,838 — 1,445,383
Hamilton 6,433,717 7,716,143 — 1,282,426
Quebec 6,295,715 7,273,037 — 977,322
Edmonton 4,665,304 6,224,118 — 1,558,814
Halifax 3,574,661 4,550,585 — 975,924
London' 3,467,777 4,148,896 — 681,119
Regina 3,.523,315 4,359,435 — 836,120
St. John 3,104,376 3,500,459 — 386,083
Victoria 2,335,968 2,928,371 — 592,403
Saskatoon 1,920,273 2,426,852 — 506,579
Moose Jaw 1,491,333 1,863,467 — 372,134
Brantford 1,402,573 1,574,781 — 172,208
Brandon 704,241 823,147 — 118,906
Lethbridge 716,451 1,015,277 — 298,826
Medicine Hat 434.555 483,546 — 48,991
New Westminster.. 596,465 787,247 — 190,782
Peterboro 929,863 1,085,580 — 155,717
Sherbrooke . . 1,174,889 1,360,989 — 186,100
Kitchener 1,003,474 1,308,902 — 305,428
Windsor 3,787,556 3,622.629 -!- 164,927
Prince .Mberta . . . 314,814 477,685 — 162,871
Total $342,571, .595 $370,366,351 —$27,794,756
Moncton $ 1,173,518
April 22, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 1817)
PAID UP CAPITAL - - - - jMRb. ^ 24,655,500.00
RESERVE FUND - - .— iS^fJL ------ 16,750,000.00
RESERVE LIABILITY OF PROPRIETORS vP^W^flAl 24,655,000.00
AGGREGATE ASSETS 30th SEPT., 1920 ^^-Ji^^^^j^^^*^ $362,338,975.00
Sir JOHN RUSSELL FRENCH. K.B.E.. General Manager
357 BRANCHES and AGENCIES in the Australian States, New Zealand. Fiji, Papua (New Guinea), and London. The Bank transacts every description
of Australasian Banking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2.
A,,i NTS: BANK OF MONTKKAL. KOYAL BANK OF CANADA.
The Service of an Elxpert
The management und investment of funds needs the judgment of an
expert. Amateurs sometimes succeed:— on the other hand, they often fail.
The property which is to yield an income to your family after your
death ;—
The Trust Fund which is to yield an income to a person or cause dear
to your heart : —
Even the investments which yield you your present income;—
All need the expert management, the extensive knowledge, the pru-
dence and foresight, which
The Canada Permanent Trust Co.
can give them.
Through its hranches throughout Canada, this Company is in touch
with business conditions from the Atlantic to the Pacific It is not only
in a position to care for your present property, but to make further in-
vestments for you which shall he both safe and profitable.
Whether as Executor. Trustee, or Financial Secretary, this Company
is in a position to render you and your family a valuable service-
The Canada Permanent Trust Company
Paid-up Capita'
Sl.OOO.OOO
14 TORONTO STREET
TORONTO
I Branch: A, E. He
ESTABUSHED 1879
Alloway & Champion
Bankers and Brokers
Member* of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Storka and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
The First Step
towards effective Fire Prevention in the store, factory or
home, is the removal of hazardous conditions.
Two out of every three fires occur in dwellings, and are
caused principally by carelessness and indifference.
Withuhe high cost of building material, how can our
increasing population be taken care of if more than half
the number of houses that are built annually are
destroyed by Fire?
Remove accumulations of rubbish, litter, paper boxes
and old furniture from attics, cellars and back yards.
During the first week of May boys and girls of the pro-
vince are going to inspect our homes.
Help them to PREVENT FIRES BY REMOVING THE
C.^USE,
Popularjiterature, "Conservation of Life and Property from Fire."
" Lishtning, ita Origin and Control," free on request.
ONTARIO FIRE PREVENTION LEAGUE, INC.
In Affiliation will, Ontario Fir<- Marshal's Office
153 UNIVERSITY AVENUE - - TORONTO
Ccorgc F. Leais, Sccrelnrv
A Trust Company^ s
Charges
CONTRARY to popular belief, a trust company re-
ceives no more remuneration for its services than
does a private executor or trustee. The amount
is based on a percentage of the funds handled and is
fixed by the Courts when the accounts are audited.
Consider the following advantages which a trust com-
pany offers you :
It is financially responsible.
It is always available.
Its officers have wide experience in the manage-
ment of estates and trusts.
It maintains an up-to-date accounting system
ensuring accuracy.
It furnishes statements to beneficiaries at regular
intervals.
It keeps all papers and documents in Safety
Deposit Vaults.
These and many other advantages can be secured at no
greater cost than private trusteeship. You can readily
see, therefore, that trust company service is the more
efficient and less expensive for you in the end.
We solicit \fOur business.
Inlervicmcrs and correspondents invited,
THE
TOROiHTOGEAERAlTRUSTS
CORPORATIOiS
Head Office: Corner Bay and Melinda Sts. - Toronto
18
THE JMONETARY TIMES
NEW HUUNSWICK WILL PRACTISE ECONOMY
Estimates Lower Than Expenditure For Previous Year— No
New Enterprises to be Undertaken
AN estimated revenue of $2,895,856, as compared with
actual receipts of $3,100,548 last year, and an estimated
expenditure of $2,886,526, as compared with an expenditure
that reached $3,004,200 last year, was forecasted for the
province of New Brunswick by Hon. J. E. Hetherington, who
recently became provincial secretary treasurer, in his budget
speech "delivered in the legislature on March 30. He was
thus able to predict a surplus at the end of the coming year's
operations of $9,330, but he told the House that the gov-
ernment was faced with a situation which would necessitate
the most stringent economy in expenditures and the most
thorough collection of revenues in order that the province
might "break even."
"Economy will be the watchword of the government,"
declared Hon. Dr. Hetherington, following up Premier
Foster's recent announcement that the policy of the govern-
ment would be not to embark upon any new enterprises for
the next few years. He referred to the stringency of the
times and the unfavorable condition of the lumber market
and said that under the circumstances the government had de-
cided the time was inopportune to put into effect any new taxes
which would mean placing new and additional burdens upon
any of the industries of the province. On the other hand,
hesaid, the government would foster industries which would
be productive of employment.
Reduced Territorial Revenue
The anticipated decrease in the revenue was accounted
for by an expected reduction of $270,000 in the territorial
revenue. This was due, it was explained, to the conditions
of the lumbering industry which had brought about a much
smaller cut of logs on the Crown Lands which would have
precipitated such a reduction in the territorial revenue that
the province would be faced by a huge deficit if it had not
been that the increased stumpage rates, now $5 per thousand,
were effective during the cutting season of the past winter.
In connection with the forest revenue a table was pre-
sented showing that New Brunswick, with an increase of 100
per cent, as compared with 1919, had made a bigger advance
than any other province in this particular, British Columbia's
advance being 20 per cent., while Quebec showed 28 per
cent., and Ontario 50 per cent.; while it was shown that
New Brunswick's loss from forest fires on Crown Lands had
been approximately $90,000 as compared with $390,000 in
British Columbia, $350,000 in Quebec, and $290,000 in On-
tario.
Special mention was also made of the growth in the
motor vehicle tax receipts, which amounted to only $15,000
in 1915, and from which source $200,000 was received last
year and the estimated receipts for this year are $275,000.
The increase in the provincial debt during the past year
was declared to have been $1,499,931, the chief items of which-
were $100,000 for St. John Valley Railway, $500,000 for per-
manent bridges, and $780,000 for permanent roads under
Federal aid.
Reductions Explained
The territorial revenue estimated for 1921 is $1,320,500
as compared with $1,589,539 actual receipts last year, the
stumpage being estimated at $1,000,000 while big game hunt-
ing licenses are expected to produce $45,000. Taxes from
incorporated companies are estimated at $162,150 as com-
pared with $164,386. the actual receipts of last year. Pro-
hibition produced $79,500 in receipts last year, but for this
year the estimate, for some reason, is only $60,000, while
succession duties are expected to produce $100,000, as com-
pared with $90,340 last year. On the expenditure side the
government expect to reduce the provincial appropriation for
agriculture from $83,240 to $66,033, while the amount in the
estimates for bonuses to officials is $4,825, as compared with
$10,700 last year, indicating that the government will not pay
more than the first half-year's bonus this year which has
already been paid to the provincial civil servants. Education
is going to get more than last year, the estimate for this
year being $361,200, as compared with $318,697 paid out last
year. There is to be a reduction from $175,347 to $150,000
in the expenditures for forest service, but interest charges
will advance from $648,040 paid out last year to $744,000 in
1921. The maintenance of the Provincial Hospital at Fair-
ville is expected to be reduced from $172,433 paid last year
to $160,000 this year. The biggest cut of all will come in
public works where the estimate for last year was $487,000,
but the actual expenditure was $811,810; this year the esti-
mates call for an expenditure of $562,294, and the Jlouse was
told that the amount will not be exceeded. Sinking funds
will cost more, an advance from $37,580, expended for this
purpose last year to $83,950 this year being estimated. The
expenditures chargeable to the motor vehicle fund last year
amounted to $142,959, but this year from the same source
it is expected the expenditure will be $192,970.
Exclusive of the St. John Valley Railway interest pay-
ments, the provincial secretary declared the province had a
surplus of almost $100,000 on its ordinary revenue account
last year.
PAYROLLS STILL SHOW CONTRACTIONS
Dominion Headquarters of the Employment Service of
Canada, Department of Labor, reports that during the week
ending March 19, 5,151 firms made employment returns show-
ing that they had contracted their payrolls by 2,825 persons,
or less than one-half of one per cent., since the preceding
week. Taking the volume of employment reported for the
week of January 17, 1920, as a base equal to 100, employ-
ment for the week of March 19, 1921, stood at 86.6 as com-
pared with 101.2 indicated by the firms making returns for
the corresponding week in last year. This would show, there-
fore, that the employment afforded by the firms reporting for
the week under review was about 14.5 points lower than dur-
ing the week ending March 20, 1920. Prince Edward Island
and Alberta registered nominal gains over the preceding
week, while of the declines reported elsewhere those in
Quebec of 1,429 persons were the largest. In every province
employment was considerably below the level of the corre-
sponding week of last year. As compared with the returns
for Blarch 12, there were increases in seventeen industrial
groups totalling 1,749 persons, but in fifteen groups there
were shrinkages aggregating 4,574 workers. As during the
preceding week, the majority of these employees were re-
leased from logging camps, on account of the closing of the
active season for cutting opei'ations.
The largest increases occurred in sawmills, cloth, gar-
ment, carpet and knit goods factories, in the musical in-
struments, coal mines and retail trade. With the exception
of the expansion in coal mining, which took place in Alberta,
practically all these gains were reported in Quebec and On-
tario. As mentioned above, the shrinkages in logging were
very decided, totalling 1,762 persons or nearly 15 per cent.,
the greater part of whom were let out in Quebec and Ontario.
In addition, considerable inactivity was reported in the rail-
way car and shipbuilding branches of iron and steel, in pulp
and paper factories, in iron ores and asbestos mining, rail-
way and water transportation and railway construction.
While most of these losses were widespread in application,
those in Quebec and Ontario were usually the largest. For
the following week, a further but somewhat smaller decline
on the whole, was anticipated. As compared with the corre-
sponding week of last year employment in almost every in-
dustry was substantially lower, the contractions in the manu-
facturing group being especially noteworthy. There were,
moreover, large shrinkages in the mining group, in railway
transportation and building and railway construction.
April 22, 1921
THE MONETARY TIMES
Is Your Property
Still Unsold— Still To Let
We will sell or rent it for you.
V\ e can do it for you. because we are doing it every day for
others. Collection of Rents. Efficient .Manasement of Apartment
Houses. Stores. Offices and Factory Buildinfis-we do these things
exceptionally well.
For the service we render our fees are small By comparison
with previous results, our services very of ten cost the owner nothing.
Call, write or phone for particulars. We will tell you exactly
what we do, how we do it and what we charge.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS
Winnipeg TORONTO London, Eng.
The impartiality of the acts of a TRUST COMPANY and Us freedom
from improper influences are some of the advantages offered in
The Management of Estates
We will gladly discuss this matter with jou.
CAPITAL, ISSUED AND SUBSCRIBED . .SLI71, 700.00
PAID-UP CAPITAL AND RESERVE 1,172,000.00
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
MEAD OFFICE: WINNIPEG, CAN.
Future Welfare
For
Your Family
Your family's welfare now depends
largely on your ability to provide for
them. Their welfare in the future
will depend on the protection your
will provides for the estate you will
leave to support them.
Does your will appoint a trust com-
pany executor ?
Write for Boolfleis about our service.
National Trust Company
Limited
Paid-up Capital and Keserve . $4,000,000
Assets under Administration over - $94,000,000
lK-22 KING STREET EAST - TORONTO
Your friend and
The Canada Trust Company
Should you wish to have a friend act as executor
without burdening him with book-work and other
details this can be arranged by naming The Canada
Trust Company co-executor.
Competent and careful accounting is essential to
the proper management of your estate.
The Canada Trust Co^^m'anv
" The Executor for Your Estate. '
Thomas, Ontario:
Saskatchewan General Trusts
Corporation, Limited
Head Olfice : Retina, Sask.
Executor AdmirtiMtrator Assignee Trustee
Special attention given Mortgage Investments, Collections,
Management of Properties for Absentees and
all other agency business.
BOARD OF DIRECTORS:
\V. T. MOLLARD. President O. H. BARR, K.C.. Vice-President
H. E. Sunipson, KC. A. L. Gordon, K.C. J. A. M. Patrick, K.C.
David Low, M.D. W. H. Duncan J. A. McBride
Chas, Willoughby \Villi.-im Wilson
K. E MLUl'HV. General .Manager
Oificial Administrator for the Judicial District of Weyburn
(Trustee under Bankruptcy Act)
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
The Security Trust Company, Limited
Head Office
Calgary, Alberta
Liquidator, Trustee, Receiver, Stock and Bond Brokers,
Administrator, Execntor. General Financial Agents.
M CONN.ACHKK - Pres. and .Managing Dire
Providing for Education
In times of prosperity make certain that the education
of your children will be provided for in case of a reversal of
fortune. By placing a trust fund with us for investment,
an income can be provided to begin at any time and be
administered under any conditions you see fit to incorporate
in the .igreement. Write us for particulars.
Chartered Trust and Executor Company
46 KING STREET WEST, TORONTO
JOHN J, GIBSON, Managing Director
THE MONETARY TIMES
Volume 66
ALBERTA MUNICIPAL ASSESSMENTS TOO HIGH
Provincial Board, For Purposes of Provincial Taxation,'
\alues Property Far Belovif Figures Set by
Local Authorities
EQUALIZED assessed values of lands in cities in Alberta
for the purposes of provincial taxation all show big
reductions as compared to the municipal assessments in the
I'eport of the new provincial board of equalization which
was laid on the table of the legislature this session by Hon.
C. R. Mitchell, provincial treasurer. The comparative lists
of the equalized assessed vpJues made by the new board,
and the municipal assessed values of land in the various cities
are as follows: —
Total local
unicipal
Calgary
Edmonton . .
Lethbridge . .
Medicine Hat
Red Deer . . .
Wetaskiwin .
land valu
$52,576,694
61,891,965
6,46.3,185
9,213,395
2,237,060
1,207,922
Total
equalized
assessed
land values.
$45,000,000
45,000,000
5,100,000
5,300,000
725,000
720,000
These equalized assessments made by the provincial
board are not for the purpose of municipal assessors in mak-
ing their city assessments but for the province in levying
provincial tf-'xation, and making the burden equal through-
out cities, towns, villages and i-ural districts.
For the six cities above the total municipal assessments
on land values were $133,590,221, whereas the provincial
board of equalization has fixed its figure of totals for these
six cities at $101,855,000, a reduction of $31,735,221.
There are 255,288 square miles in the province, and the
board's report says this embraces an acreage of 163,384,300
acres, the total surveyed land at the end of 1919 being 85,-
147,816 acres. Of this amount, the Dominion government
issued timber licenses on 1,353,100 acres, grazing leases on
2,902,400 acres, forest reserves and parks 16,754,700 acres,
reserves for forestry purposes 1,677,500 acres, road allow-
ances 1,276,000 acres, land covered by water 2,285,050 acres,
leaving available l&nd for settlement at 58,898,566 acres.
In the rural districts of Alberta the board's report says
that there are 38,207,343 acres of taxable unsubdivided lands
with an equalized assessed value of $591,928,499, and in ad-
dition there are 410,584 acres in subdivided land which is
valued at $6,086,770.
Much Assessable Land
Altogether the board found that in the municipal dis-
tricts of the province there are 28,691,221 acres of assessable
land. In the improvement districts, the board found 9,516,-
121 acres of assessable land. This gives the total of 38,207,-
343 acres cited above on which an assessed value has been
worked out for levying of taxes.
The total area occupied by the cities is 70,802 acres, by
towns 62,279 acres, by villages 33,870 acres, and by hamlets
in municipal districts 61,700 acres, while improvement dis-
tricts contain hamlets with 19,160 acres.
Taxes on Acreage
The board has fixed on $15.49 an acre as the average
assessable value of land assessed as acreage. Capitalized at
8 per cent, the report says this would require an average in-
come of $1.24 per acre or $199.40 a quarter section of 160
acres from every acre of assessable land in the province.
Possible returns fluctuate above and below this figure
and the report goes into grea.t detail concerning the care
with which the figure was worked out from the immense
mass of statistics gathered.
In referring to the work of the board in equalizing
assessed values in cities, the report says: "The woi-k of
equalization in urban municipalities was very difficult. In
determining the total assessed value of lands and other
property in such municipalities it has been the common
practice to take the population as the basis. But the board
was confronted with the fact that many municipalities with
a small population had a very large area, while others with
a larger population had a smaller area. It is well known
that there has been a tendency to surround urban communi-
ties with as much subdivided land as possible to place on
the market, and in many cases to subdivide out of all pro-
portion to the requirements of the present or even remote
future.
Borrowings Limited
"Moreover, in the days of the boom in real estate the
values placed on land were high enough to enable the authori-
ties to levy a comparatively low rate and produce the amount
of money desired. There has been a tendency to maintain
just as high a valuation as possible on all lots, for the reason
that the borrowings of the municipality have been limited
to a certain percentage of the total assessed value of the
lands within their bounds, and in addition there has been a
very great effort to maintain a high assessed valuation in
order to obtain a low rate, rather than to have a normal
valuation and allow the interest rate to be fixed altogether
by the amount of money required.
"Further, the values placed upon lands in some of the
urban centres have been greatly modified in view of values
placed upon improvements, and of taxes levied upon business.
For these reasons, the board could not be guided in any satis-
factory way by the va-lues which were placed upon lands by
local authorities.
"The boai-d has taken in consideration the population,
the area, the business transacted within the limits of the
municipality, the contiguous territory as related to the busi-
ness so transacted, and many other factors which go to
determine the value at which business property and residen-
tial property should be so placed, and has arrived at its
conclusions after much careful comparison."
Review of Figures
A review of the equalized figures given in the report for
the six cities, discloses that the city of Lethbridge was vir-
tually the only one where the board did not find it necessary
to put its figures away below those of the municipal authori-
ties. Among other interesting points in the report are the
following" —
Fifty-two towns in the province have local assessed
valuations totaling $24,566,026, whereas, the board's valuation
of the same lands is $10,523,000. One hundred and twenty
villages in the province have local assessed valuations
totalling $7,415,515, but the equalization board's total for the
same lands embraced within their borders is $4,964,877. Per-
haps the most striking difference on the list is the case of
the town of Beverly, near Edmonton, where local land as-
sessments total $1,013,895, but which the board values at
only $101,500. In the same class is Bassano not far from
Calgary, where the local assessments totalled $1,302,000, and
the equalization board's total for the same lands was $188,-
700. In the same manner, the local municipal assessment of
Redcliff, near Medicine Hat, which totalled $3,306,980, under
the board's method of valuating, totals only $328,500.
The members of the equalization board are: Chairman,
J. H. Lamb, deputy minister of municipal affairs; A. J. H.
Donahoe, Foremost; W. J. Jackman, Cloverbar; W. D. Spence,
Calgary; and S. B. Ferris, Edmonton. It was created on an
order-in-council, in April, 1920, following legislation passed
by the house on the initiative of the late Hon. A. G. Mac-
Kay, former minister of municipal affairs. Since its first
meeting, the board held almost continuous sessions up to the
time of the completion of the report. The members, after
a preliminary survey of the province, visited every munici-
pality, urban or rural, as a whole, or by members deputed
specially for the work. The report says that the board re-
ceived the fullest co-operation from the various municipal
and local authorities and expresses gratification at the as-
sistance given.
April 22, 1921
THE MONETARY TIMES
The Saskatchewan Mortgage and
Trust Corporation Limited
(Trustee under Bankruptcy Act)
offer you the benefit of their experience as
EXECUTORS, ADMINISTRATORS, TRUSTEES,
MANAGEMENT OF ESTATES, ETC.
MONEY TO LOAN ON IMPROVED FARMS
AND MODERN CITY PROPERTY
REGINA
SASK
INCREASED PROTECTION FOR DEPOSITORS
The addition of $250,000 to our Reserve Fund out of
last year's earnings increased that Fund to $6,000,000 which
is equal to the Paid-up Capital.
Our depositors, therefore, have the protection of Twelve
Million Dollar! of Shareholders' capital-
Open your account with the institution that has been
doing business in Toronto for more than sixty-five years and
has safe-guarded and helped to increase the savings of many
thousands of thrifty Toronto people, whose confidence it has
had for this long period.
You will receive interest at
THREE AND ONE-HALF PER CENT.
per annum, compoimded half-yearly— whether iour balance
be large or small.
Full privileges of cheQue withdrawals.
Canada Permanent Mortgage Corporation
Established twelve years before Canada was born
14-18 TORONTO STREET - - TORONTO
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building. London. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PURDOM, KC.. President NATHANIEL .MILLS, .ManaRcr
London and Canadian Loan and Agency Co., Limited
EsjABLisHi :.) lS7;i SI YONGE ST.. TORONTO
Paid-up CapiULSl.iiU.UOO. Reserve Fund. Sl.lHJU.UOO. Total .\ssets. *5,007.;;63
Debentures issued, one hundred dollars and upwards, one to Hvc years,
liest current rates. Interest payable half-yearly. Thct^e Debentures are an
Authorized Trustee Investment. .Morteafic Loans made in Ontario. .Mani-
toba and Saskatchewan.
WILLIA.M WEDD. Secretary \V. C. \OXON. .ManattinK Director
^"^ Ontario Loan
& Debenture Co.
LONDON Incorporated 1870
C.\riT.\L Axn Reservk Fi'Ni)
Canada
84,000,000
5-;i
SHORT TKRM (1 TO 5 YKARS)
DEBENTURES
YIELD INVESTORS
5^1
,I()MN \KCI.AKV I'
A M. SMAUT, .ManaRer
rAV'ER 200 Corporations,
^'^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office, No. 13 Toronto Street
Capital .\ccount. aC'il.RSO.Od Reserve Fund »;iM(,(MMI.«0
Total Assets. Kl:l,l«S,r,(IO.U«
President. WELLINGTON FKANCIS. Esq., K.C.
Vice-President. HERBERT LANGLOIS. Esq.
Debentures issued to pay F^'A",,. a LeKal Investment tor Trust Funds.
Deposits received at <",. interest, withdrawable by cheque.
Luans made on improved Real Estate on favorable terms.
WALTER GILLESPIE, Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agetits for investiiient in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
InquirieM Invited
General Manager Lieut. -Col. G. H. DORRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official .\ssignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office - - Swift Current, Saskatchewan
JOHN R LITTLE. Managing Director
22
THE MONETARY TIMES
Volume 66
PRINCE EDWARD ISLAND HAS SMALL SURPLUS
Public Accounts for 1920 Show Greatly Increased Expendi-
ture and Revenue
■pUBLIC accounts of Prince Edward Island for the year
*■ ended December 31, 1920, recently tabled in the legis-
lature, show receipts of $748,659, and expenditure of $745,-
406, leaving- a surplus of $3,25.3. Included in the receipts is
$69,816 of taxes and tax arrears held over from 1919.
The larger expenditures in 1920 were as follows: —
Administration of justice $ 28
Department of agriculture 22
Department of education 211
Department of public works 135
Department of provincial sec.-treas 20
Falconwood hospital and infirmary .... 120
Interest 56
Legislation 22
Miscellaneous grants, etc 12
Provincial building
Registry offices
,605
,483
,547
,157
,227
166
,497
338
,216
,591
,858
Total ordinary expenditure $659,516
Capital or permanent expenditure 5,390
Highways improvements 61,140
$726,047
Sinking fund (appropriation) 10,470
Interest 8.889
The chief recepits were as follows: —
Dominion subsidy
Falconwood hospital fees
Amusement tax
Fire insurance companies
Fire insurance companies
Banks
Real estate (or land tax) personal
property income tax under
Taxation Act $141,029
Income tax, 1919 $40,288.80
Income tax arrears.... 1,683.71
Land tax arrears 5,589.58 47,562
Fox tax arrears
Succession duties
Prohibition commission
$745,406
$372,181
10,178
5,225
9,900
3,150
16,285
188,591
22,254
7,936
50,100
Total ordinary receipts $706,476
Highway improvements 33,293
Interest on sinking fund investments.
$739,770
$748,659
ALBERTA ACREAGE LIKELY SMALLER
It is not going to be an early spring in Alberta, but
every indication points to a good average season for farm-
ing operations. That is a fair summing up of the reports
that have come thus far to the provincial department of
agriculture from all parts of the province. A small amount
of spring work has already been done, it is stated, but only
by individual farmers in favored spots, as a time-sa-ving
measure. The department has no information of seeding
having actually been done as yet.
It is the opinion of government officials that a smaller
acreage will be cultivated this year in Alberta. A cut of
about 10 per cent, on last year's acreage is estimated. The
1920 figures were 7,955,940 acres in grain and 11,662,167
acres under cultivation of 3II kinds.
PRINCE EDWARD ISLAND BUDGET SPEECH
Surplus Now Reported — Estimates Provide $265,400 for
Education and $769,129 for Public Works
Xy HINGE Edward Island's finances in relation to its prob-
-'■ lems of government were discussed by Premier Bell in his
budget speech on April 4. Referring to the surplus for 1920,
he claimed that the l&te government had incurred a deficit
of $253,000 as certified to by the provincial auditor. The
Liberal p&rty thus could boast that they had turned the
deficit of $253,000 to a surplus. The late government, he
said, had done nothing to provide for the increase of teach-
ers' salaries, where&s this government had increased these
salaries by $86,000.
He referred to the federal appropriation of 20 million
dollars, of which the share of this province was $600,000.
This grant was originally intended for permanent inter-
provincial roads. He spoke at some length of the negotia- ■
tions between the provinci&l and federal governments before
an agreement favorable to the province was arrived at. This
was finally accomplished and the work was proceeded with
until 60 miles had been finished at a cost of $100,000. Of
this amount $40,000 was paid by the feder&l government,
the remainder secured from auto fees $30,000, and $30,000
which the government had on hand, and so they paid the
$100,000. He intimated that it was the intention of the gov-
ernment to build 800 miles of road, provided they retained
the people's confidence long enough. The roads, he said,
were not for the benefit of automobile owners but of the
fa.rmers.
The estimates for 1921, tabled on April 5, provide for
the following: —
Administration of justice $ 28,290
Agriculture 33,050
Education 265,400
Hospital and infirmary 120,200
Interest 56,500
Legislation 21,950
Secretai-y-treasuier 13,900
Public works— ordinary 736,329
Public works— capital 32,800
INTERNATIONAL LOAN CO.
In Winnipeg recently, the annual meeting of the Inter-
national Loan Co. was held. That the directors of the com-
pany look forward to the development of a very large western
mortgage corporation under this name is indicated by the
fp-'Ct that the chief business of the meeting was the consid-
eration of details in connection with the issuance to the com-
pany of a new Dominion charter with an authorized capital
of $20,000,000, which was granted at the last session of the
Dominion parliament. The company was first formed under
a provincial charter in 1912 with a capital authorized of $500,-
000. This was increased later to $2,000,000, and when this
sum had been fully subscribed, it was decided to place the
capitalization at a figure to provide for full future expansion.
Up to the present there has been subscribed $3,200,000. The
subscriptions are made on long terms of payment, and the
a-ccruing interest is used to reduce the amount of deferred
payments. The subscribers and borrowers are chiefly Mani-
toba farmers, and the object has been to make the organiza-
tion as largely as possible a farmers' company.
The paid capita-! of the company was reported at $450,-
000, which has been invested in first mortgages with a few
municipal bonds. The gross income of the company was
$45,400, from which there was paid the usual dividend on
the paid capital at the rate of 6 per cent, per annum. The
company has no outstanding bonds or obligations of any kind
to the public.
H. M. Ross, of Winnipeg, is president, while G. W. Argue,
also of Winnipeg, is managing director.
April 22, 1921
THE MONETARY TIMES
DIVIDENDS AND NOTICES
DETROIT RIVER TUNNEL COMPANY
Detroit, Mich., April 5, 1921.
Notice is hereby given that the Annual Meeting of the
StoclihoWers of the Detroit River Tunnel Company for the elec-
tion of Directors and the transaction of such other business as
may lawfully come before the meeting will be held at the
Head Office of the Company, Room 300, Michigan Central
Terminal Building, in the City of Detroit, Mich., on the First
Thursday after the first Wednesday (being the 5th day) of
May, 1921, at 10 o'clock a.m., Eastern Standard Time.
517
EDWARD F. STEPHENSON,
Secretary.
THE MERCHANTS BANK OF CANADA
QUARTERLY DIVDEND
A Dividend of Three Per Cent, for the Current Quarter,
being at the rate of Twelve Per Cent, per annum, and a
bonus of One Per Cent, upon the Paid-up Capital Stock of
the Bank, were declared, payable on 2nd May next to share-
holders of record on the evening of 15th April, stock not fully
paid up on 1st February to participate in both dividend and
bonus on the amounts paid up on that date and upon later
payments from the date thereof.
By Order of the Board.
D. C. MACAROW,
General Manager.
518
Montreal, 1st April, 1921.
NOTICE OF APPLICATION TO PARLIAMENT
NOTICE IS HEREBY GIVEN that an application will
be made to the Legislative Assembly of the Province of
Ontario at the present session thereof by The Goodyear Tire
and Rubber Company of Canada, Limited, for an Act ratify-
ing and confirming ".• Scheme of Arrangement between the
said Company and its Creditors whereby approximately
$3,000,000.00 owed to the Goodyear Tire and Rubber Com-
pany of Akron, Ohio, will be paid by the issue of six per
cent, cumulative prior preference stock at par, the holders
of $1,219,920.40 of the notes of the Company will be paid by
giving three year eight per cent, notes with the privilege to the
Company of two yearly renewals on the payment with each
renewal of twenty-five per cent., and whereby Rubber Com-
mitment Creditors will be paid twenty per cent, in cash on
deliveries and the balance in ninety day notes with interest
at seven per cent, with the privilege to the Company of
securing three ninety day renevi'als upon payment of twenty-
five per cent, of the balance owing at the time of each re-
newal; and Fabric Commitment Creditors agree not to re-
quire the Company to take deliveries more rapidly than it
requires for production and to accept payment against de-
liveries twenty-five per cent, in prior preference stock or
preferred stock at par and seventy-five per cent, in cash;
and whereby the par value of the common stock is decreased
from $100.00 to $10.00 a share; said plan to be declared
effective when it has been approved and consented to by
seventy-five per cent, in amount of each of the above classes
of Creditors, the Goodyear Tire and Rubber Company of
Akron, and by sixty per cent, in amount of the preferred
stock and common stock of the Company now outstanding.
ROWELL, REID. WOOD, WRIGHT & MCMILLAN,
Solicitors for the Applicant.
DATED at Toronto this 11th day of April, A.D., 1921.
524
CANADA CEMENT COMPANY, LIMITED
PREFERENCE SHAREHOLDERS
DIVIDEND No. 45
Notice is hereby given that a dividend of l%"7f for the
three months ending March 31st, 1921, being at the rate of
7<7c per annum, on the paid-up Preference Stock of this Com-
pany has been declared, and that the same will be paid on
the 16th day of May next to Preference Shareholders of
record at the close of business, April 30th, 1921.
H. L. DOBLE, Secretary.
Montreal, April 15th, 1921. 530
DIVIDEND NOTICE
MURRAY-KAY COMPANY, LIMITED
Notice is hereby given that a Dividend of one and three-
quarters per cent, for the three months ending April 30th,
1921 (being at the rate of seven per cent, per annum) has
been declared on the Preference Shares of the Company, and
will be payable on and after May 2nd, 1921, to Shareholders
of record at the close of business on April 20th, 1921.
Bv Order of the Board.
FRANK MUNDY,
Secretary.
Toronto, April 18th, 1921. 529
DEBENTURES FOR SALE
FORD CITY. ONT.
Tenders will be received until 5 p.m.. May 3rd, 1921, for
$75,000.00 61'2 per cent 25-year debentures for a Public
School, interest payable semi-annually.
J. F. FOSTER,
531 Treasurer.
CITY OF ST. BONIFACE
DEBENTURES
Sealed tenders, addressed to the undersigned, and marked
on the outside, "Tenders for Debentures," will be received up
to Eight o'clock p.m. on Monday, the 25th day of April, 1921,
for the purchase of the following debentures to pay for Local
Improvements, Bridge and Waterworks: —
Date of Issue — 2nd January, 1921
30-year Bridge, o'^'r $150,000.00
20-year Waterworks, 6% 50,000.00
15-year Pavement, 6% 70,548.00
10-year Pavement, 6% 2,685.00
$273,233.00
Principal payable at the end of the term.
Coupons for interest attached.
Interest payable half-yearly on July 2rd and January 2nd.
Principal and Interest payable at: —
Banque d'Hochelaga, St. Boniface and Winnipeg, Man.,
and Montreal, Que.
Canadian Bank of Commerce, Toronto, Ont.
Clydesdale Bank, Limited, London, England.
Debenture and Coupons expressed in Sterling and Cana-
dian currency and of denominations desired by purchaser.
Purchaser to pay accrued interest, take delivery and make
payment in St. Boniface or Winnipeg, in Manitoba, Canada.
Total amount of bid to be expressed in Dollars and Cents.
No tender necessarily accepted.
ERNEST GAGNON,
City Clerk.
St. Boniface, Man., 2nd April, 1921. 520
THE MONETARY TIMES
BUILDING PERMITS INCREASED IN FEBRUARY
The Advance Over Previous Month Was Thirty-Five Per
Cent. — As Compared AVith a Year Ago a Big
Decline Is Recorded
"DUILDING permits issued in 56 cities, showed an increase
-'-' during February as compared with the preceding
month, the total value rising from $2,378,937 in January to
$3,216,085, an advance of $837,148, or over 35 per cent., ac-
cording to figures of the Department of Labor. Nova Scotia,
Quebec, Saskatchewan, Alberta and British Columbia
registered increases in the value of the permits issued, while
in New Brunswick, Ontario and Manitoba there were declines.
Of the increases, that of $676,615, or nearly 164 per cent.
in Quebec, was the largest As compared with the figures
for the corresponding month in 1920 there was a decrease
of $2,606,182, or almost 45 per cent., the value for February,
1920, ha\ang been $5,822,267.
DEPARTMENT
OF LABOUR
FIGURES
January,
1921
s
February,
1921
February,
1920
CITY
«
Nil.
41,725
14,175
50
27,500
5,525
Nil.
5,525
Nil.
412,640
353,225
13.315
Nil.
8.000
35,700
2,400
1,268,477
19,300
13,900
6,425
I3.0C0
2.000
4,875
347,650
1.305
13,970
40.100
19.840
2,200
11.100
5,000
5,787
1,250
5,055
, 18,336
3,050
30,510
20.000
.584,620
4.525
94.400
280
181,150
1,200
5.150
174,800
41,035
3,285
28.150
9,600
48.800
33.000
13.400
400
2,000
379.585
1,860
10,050
92.875
1,000
36.780
189,210
47,810
Nil.
112.230
101.780
Nil.
10.450
4.650
Nil.
1.650
3,000
1,089.255
623.605
160.345
Nil.
39.400
52,780
213,125
1.264,788
Nil.
6.265
700
4.650
1.500
4.690
117,500
2.870
26.200
65,460
18,250
7,750
78 800
1,000
425
2,050
3,235
13,821
5.920
37,110
5.400
737.777
25.070
97,700
645
57.395
3,075
9.470
44.850
58.000
10,000
40,000
S.OOO
8.5.165
65.400
13,683
2,280
3,800
544.602
850
11.500
197.510
10.114
63.480
239.443
21,705
Nil.
192,670
182,160
•Halifax
10,210
23,458
6,258
9,200
8.000
1.784,720
386,335
16O,!lI0
Fredericton
•St. John
Quebec
•Montreal >
'Quebec
1,155.375
46.100
26,000
2,467,393
•Three Rivers. . . .'
Belleville
•Brantford
Chatham
16.150
7,500
Gait
•Guelph
•Hamilton
218,775
•Kitchener
14,8.S0
•Ottawa
Owen Sound ,
Nil.
•Port Arthur
5.740
•St. Catharines
7,445
1.410
•St. Thomas
Sarnia
Sault Ste. Marie
Welland
•Windsor
•Winnipeg
•Saskatoon
3,050
• Rdmonton
Lethbridge
Medicine Hat
149,100
7,200
British Columbia
694.326
•Vancouver
•Victoria
298,799
2.378,937
2.128.742
3.216,085
2,831,156
5,822,267
5,447,599
•Total— 35 cities
GOVERNMENT CURRENCY
Dominion note circulation showed another reduction in
March of $12,311,635, bringing the total decline since the
peak of November last to nearly fifty millions. Unlike pre-
ceding months of reduction, however, there was also a drop
in gold held against outstanding notes of $19,575,049. As
already indicated, since the'height of the crop moving season
last fall there has been a steady decline in the demand for
currency, which was accentuated by the decline in commodity
prices. This movement was accompanied by an inci'ease in
gold held by the government for the redemption of notes, of
about $3,000,000.
Last month's result, however, brought this improvement
to an abrupt finish. But the Dominion's position in regard
to currency is still better than it was last autumn. At the
end of November, 1920, notes outstanding totalled $326,839,-
592, against which there was held gold to the amount of
$96,021,001, and securities of $173,689,025. The figures at
the end of March, 1921, were as follows: —
Provincial. .
Fractional.
$1
850.
J 100.
27.743 25
:.293,2»2 67
i,456,10l .50
!,819,010 50
37,567 00
i,699,880 00
3.801) 00
S500
81,000
S500 Legal Tende
810,00
$5,000
$50,000
Notes for Banks
810..
820 . .
8.50,.
8500
i,683.S00 00
;.05ll.000 00
70,000 00
962.000 00
1,980.000 00
!,800,000 00
$277,882,884 92
8 11,293 .50
6,060 00
4,219 75
2.180 00
840 00
650 00
2,500 00
8 83.381,036 ,53
3.806.556 47
Gold held Mar. 31st. 1921. by the Minister of Finance
Gold reserve to be held on Savings Banks Deposits—
10 p.c. on $38,065,564.69 under The Savings Banks Act.
Gold held for redemption of Dominion Notes $ 79,574,480 06
Dominion Notes outstanding against deposits of approved secur-
ities, under Finance Act. 1^14 $134,632.875 00
POST OFFICE SAVINGS BANKS
Withdrawals from the Post Office Savings Banks con-
tinue to take place in large volume, while deposits show a
falling oflf. The following are the details for January: —
Balance in hands of the Ministerl $ cts. I Withdrawals during 8
of Finance on 31st Dec, 1920.. . |29,199.126.14l the month 7,59,373.64
Deposits in the Post Office Sav-j J
ings Bank during month i 487,321. Or
Principal— Winnipeg.
Interest accrued
from 1st April to
date of transfer
Deposits transferred from the
Post Office Savings Bank of the
United Kingdom to the Post
Office Savings Bank of Canada
Interest accrued and made pr
cipal 31st March 1920, in exci
of Estimate
8860,358.67 actual.
8859.900.50 Estimate.
Balance at the credit
of Depositors' ac-
counts on 31st
Jan.. 1921 .
April 22, 1921
THE MONETARY TIMES
25
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j CHARTERED ACCOUNTANTS I
!7iiiiiiiiiiiiiiiuiiMiiiMniiiiiiiiiiiiiMiiiiiiiHiiiMiiiiiiiiiiiiiiMiiniiiiiuiiiiiniiHUUMUiiiiiiniiiiiiiiMiMMiniiiiMiiiniiiiiiiMiiiiiiiiiiiiiiiiMin
KENNETH BOWMAN
untant
V t>i Bowmanl
ALBERTA
Chartered Accountant
(Successor to Baldwin, Dow t>i Bowmanl
EDMONTON
CHARLES D. CORBOULD
Chartered AccoDotant and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
Correspondents at Toronto. London. HnR.,
David IVlowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
C.A- 'K.C.A. England and
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Branch at NaDaimo. B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Tor
LONDON
to Chambers
ONTARIO
Kstablished IStfJ
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Ckambert
Winnipeg, Man.
\V. .\. Hendcrsc.n. C..\.
Arthur E.
Phillips
& Co. 1
Chartered Accountants |
508-509 Elec
ric Railway
Chambers
WINNIPEG
-
Man.
Cable Address— • Unra\
el."
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS
24 King Street West ■ TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Chartered Accoiiiiliiiils. Au.ltliirs.
Trustees. Ln/uuliHors
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Specialists on Kactorv Costs and Production
Phone -14,20 Bank of TORONTO
Main OH^U Hamilton Bids. * V-fI\\Jl^ 1 VJ
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING TORONTO, CANADA
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Chartered Accountants, Trustees,
Receivers. Liquidators
Merchants Bank Bldg.. 15 NVellineton Street \Vest ToronI
G. T. Clarks
l-.siahlished ISM p ,i niKvnr
.K. Williamson. C.A. J. I>. Wallace, C.A.
'a. J. Walker, C.A. H. A Shiach, C.A.
RUTHERFORD WILLIAMSON & CO.
Chartered Accountants. Trustees and
Liquidators
86 Adelaide Street East, TORONTO
604 McGlLL BulLDlNO, MONTREAL
Cable Address ' WILLCO '
Kerresentcd at Halifax, St. John. Winnipcs,
HENRY BARBER & CO
EslabUshed 1885
Chartered Accountant*
AUTHORIZED TRUSTEES IN
BANKRUPTCY
and Trunk Ra
Kreet West
ay Building.
TORONTO
J.C
Wa
ulross .Millar, C.A.
terJ. Macdonald.C.A.
Mill
ar,
Macdonald &
Co.
Cha
riered Accountants
Home
Bank
Building, 428 Main
WINNIPEG
Street
HARBINSON & ALLEN
CharlereJ Accounlanls
408 Manning Chambers
TORONTO
THE MONETARY TIMES
Volume 66
DAiMAGES WHEN GOODS LOST BY CARRIERS
Supreme Court Holds that Market Value at Time and IMace
of Consignment be Basis of Valuation
THE damages caused by the loss of a consignment of goods
under a bill of lading containing the following clause:
"The amount of loss or damage for which a carrier is liable
shall be computed on the basis of the value of the goods at
the time and place of shipment" must be calculated at the
market value of the consignment at the time and place of
shipment, and not at the cost price to the owner at the place
of purchase, plus freight charges.
This decision was given in the case of Montreal Cotton
and Wool Waste Co. vs. the Canada Steamship Lines before
the Supreme Court of Canada, and in his judgment Chief
Justice Davies says: —
"At the close of the argument the court was unani-
mously of the opinion that the appeal should be allowed and
the judgment of the trial judge restored on the ground that
the contract or bill of lading for the carriage of the goods
fixed and determined the damages for which the defendent
might become liable, namely, on the basis of the value of the
goods at the time and place of shipment.
Proper Basis of Liability
"The defendant company did not dispute its liability for
damages, ths goods having been destroyed by its negligence
during their transit. The sole question was as to the proper
test by which its liability for damages should be determined.
The defendant's contention was that its liability should be
determined from the cost to the plaintiff of these goods under
its contract with the Dominion Textile Co., Ltd., by which
it agreed to purchase the entire output of the mills at four
cents per pound for one year. That price so agreed to be
paid was the value, it contended, of the goods in Quebec on
which its liability should be based and determined.
"The trial judge held that the true value of the goods
to the plaintiff under the contract of carriage was not the
cost of price at which it pui-chased them from the mills, but
what they would fetch in the open market at the time and
place of shipment, and assessed the damages on that basis
at eight cents per pound, or $2,010.
"The Coui-t of King's Bench reversed this finding,
holding that the pui'chase price at which the plaintiff bought
from the mills was the test of value of the goods under the
contract of carriage to it for the loss of which only it could
recover, and accoi'dingly reduced the damages by half, or to
$1,005.
"I am of opinion that the Court of King's Bench erred in
the test they accepted as to the value of the goods at the
time and place of shipment. That value, I think, was not the
price which under a yearly contract for the entire output of
the textile company's mills it had bought the goods for, but
the market value of those goods to it at the time and place
of shipment of the goods. Its contract for the purchase of
the entire output of the mills may or may not have been a
good one; it may or may not have been improvident. It is
not evidence of the market value of the goods at the time
and place of shipment, which was proved independently as
very nearly double the cost to it from the mills. The carrier
had nothing to do with that price. If it had paid double the
market value, it certainly could not recover such value from
the carrier, nor can the fact of its having purchased at less
than the market price at the time of shipment avail against
the market value. An ordinary purchase in open market
would be very different."
COLLECTING INTEREST IN NEW YORK FUNDS
Right of Canadian Holders to Do So is Established-
Decision in Case of Montreal North
CANADIAN holders of securities, the interest on which is
payable in New York as well as in Canada, a feature to
which little importance was previously attached, have found
themselves able to reap an unexpected profit since New Y'ork
exchange went to a premium. The large amount of bonds
recently sold in the United States have also had this feature,
but among the government war loans there is only one
issue, the 5's due 1937, so payable. The right of the Can-
adian holder to demand payment in New York funds has
been unquestioned by most debtors, but the Dominion
finance department last year made an effort to prevent Can-
adian holders of the 1937 bonds from so doing.
Once in a while, however, a dispute will arise on this
point. On April 1, the Quebec courts maintained five actions
against the municipality of Pointe-aux-Trembles, which was
condemned in each instance to pay to the claimant the
amount found to be due on the interest coupons of the town's
debentures. In two instances, the Court upheld the prin-
ciple that a claimant who has the option of collecting the
debt in the United States may on exercising that option
demand payment to the equivalent of the face value of the
interest coupon in the currency of the country where the
amount is collectable.
This option was reserved to Achille Raymond and
Emile Vaillancourt. Their respective claims were for $240
and $660, and as they exercised their right to collect the
interest at the National Park Bank, New York City, they
demanded ten per cent, additional, for exchange. The
municipality contested the demand and pleaded that in any
event the plaintiff could claim only the amount due on the
coupons in Canadian cun-ency. Judge .\rcher found against
this plea, and judgment therefore went against the munici-
pality for $264 in the case of Raymond and $660 in the case
of Vaillancourt, with interest as from the date the coupons
matured on November 1 last, and the costs of the action.
Formation of a Winnipeg Produce Exchange, along the
lines of the Grain Exchange, to handle butter, cheese, cream
and poultry has been completed by the produce section of
the Winnipeg Board of Trade. A. P. McLean, of the Cana-
dian Packing Co., is president of the exchange, and it is ex-
pected to commence operation by April 15.
FIRE INSURANCE CASE
An interesting question under insurance law was de-
cided on April 1, in Montreal, by Mr. Justice Maclennan
dismissing an action instituted by Adelard Lefebvre against
the Compagnie d'Assurance Mont Royal, seeking to compel
the defendant to issue to him a fire insurance policy in which
the risk insured on the goods and effects in premises at 106
Hadley St. should be placed at $1,600.
Plaintiff stated that he applied to defendant for a policy
of insurance in September, 1919, when the amount of risk
was fixed at $1,600, and an interim receipt covering insurance
for this amount was issued to him. On November 29 fol-
lowing he was surprised to I'eceive a policy insuring his
effects to the extent of $1,200 only, this policy being re-
ceived by him after he had notified the company of a fire
which took place on the insured premises. The policy was
accompanied by a schedule dividing the $1,200 between
certain classes of plaintiff's effects, a condition and limita-
tion for which he said he never applied. Consequently, he
alleged that he was prevented from exercising his proper
rights under the insurance.
Defendant pleaded that after the fire it was found that
the value of the goods and effects in the plaintiff's premises
was not more than $1,200, and it was then and there agreed
between plaintiff and defendant's agent that the interim re-
ceipt should be corrected in order to make it concur with
the value of the insured goods.
Justice Maclennan, after examining the proof and docu-
ments produced, reached the conclusion that the company
defendant never agreed or undertook to insure plaintiff for
the sum of $1,600, or to issue him a policy for that amount.
Plaintiff's action, therefore, was dismissed with costs.
Am-il 22, 1921
THE MONETARY TIMES
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I REPRESENTATIVE LEGAL FIRMS [
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IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII1IIIIIII7
CALGARY
Charles F. Adams, K.C.
Bank of Montreal BIdg.
CALGARY - - ALTA.
LETHBRIDGE, Alta.
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE - Alberta
SASKATOON
C. L. DURIE. B.A.
B. .M. Wakei
ING
DURIE & WAKELING |
Barristers
and Solicitors
Solicitors for the Bank of Hamilton.
Great West Permanent Loan Co.
Monarch Lite Assurance Co.
The
The
Canada Building
Saskatoon. Ca
nada
W. F
\V. Lent. K.C. AWx
LL.B. H. D. .Mann.
B. .\1
.M.A..
ackay. .M.A..
LL.B.
LENT,
MACKAY
&
MANN
Ba
rriste
rs. Solicitors.
Nota
ries. Etc.
30.5 G
rain E
xchange Bids..
CaiR;
ry. Alherta
Cablt
Addr
iss"Lenio" U'
•stern
Union Co</i-
Solicitors for The Standard
The .Northern Trusts Co..
Bank
Assoc
of Canada,
iatcd .Mort-
RiBe
nvest
>rs. Sc.
MEDICINE HAT
WRIGHT &WRIGHT
Barriiten, Solicilon, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. A. C. Rutherford. K.C. LL.D.
F. C. Jamieson. K.C. Chas. H. Grant
S. H. McCuaiK Cecil Rutherford
RUTHERFORD, JAMIESON
& GRANT
Barrister!, Solicitors, Etc.
S14-I8 McLeod BIdg. Edmonton, Alberta
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barristers, Solicitors, Etc.
Solicitors for Bank of .Montreal. The Trust
and Loan Co. of Canada. British Canadian
Trust Co.. &c.. &c.
C. F. P. Conyheare. K.C. H. W. Church. M.A.
R. R. Davidson. LL.B.
Lethbridge • - Alta.
C, F H Li)N...
LL B.
J. \V. Sltl.ht. BA.
LONG
&
SLEIGHT
Barristers, etc.
MEDICINE
HAT
ind BROOKS. Alta.
MOOSE
JAW
William Grayson. K.C.
Lester McTa
T. J. Emerson
Grayson, Emerson & McTaggart |
Barristers,
Etc.
Solicitors— Bank of .Mnn
Canadian Ba
tre.il
nk of Commerce
Moose Jaw - Saskatchewan |
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT. SASK.
TORONTO
G.W.MORLEY& COMPANY
Barristers. Solicitors, Etc.
802 Lucnsden Building. Toronto
Solicitors for A. C. Spaldins; & Bros, of Can.,
Ltd.; A. J. Reach Co. of Can.. Ltd.; Dominion
Chautauquas, Ltd., etc., etc.
Special attention given to Corporation work
and collections.
Cable Address: "Morley." Toronto
VANCOUVER
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers, Solicitors. Etc.
Yorkihire Buildinx. S2S Sermonr St.. Vucouvcr. B.C.
)'ouT card here would
ensure it being seen by
the principal financial
and commercial interests
in Canada. Ast about
special rates for thispage.
WE SELL
WE BUY
Chauvin,Allsopp & Company, Limited
FARM LANDS
And other good property. EDMONTON DISTRICT.
VALUATORS
Ground Floor. McLeod Building - Edmonton. Alta.
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
NIBLOCK & TULL, Limited
STOCK, BOND and GRAIN BROKERS
(Direct Private Wirel
Grain Elxchange
Calgary, Alta.
A. J. Pattison Jr. & Co.
Members
Toronto Stock Exchange Montreal Stock Exchange
Specialists Unlisted Securities
lOe BAY STREET - TORONTO
28
THE MONETARY TIMES
Volume 66
News of Industrial Development in Canada
Pulp and Paper Companies are Faced with Labour Troubles— Kipawa Plant of Riordon
Company Closed — Whalen Organization is Exporting to Japan — Flour Trade is
Slack — Demand From Abroad Poor — Steel Industry Preparing for improvement
AT the present time the pulp and paper industry both
here and in the United States, is in a troubled condi-
tion with regard to labor. On May 11, the agreement be-
tween the companies and the unions expires, and unless
some arrangements are made in the meantime there will in
all probability be a strike. In the face of a proposed 30 per
cent, wage reduction by the newsprint manufacturers, the
workers are asking increases of five to ten per cent. They
received a twenty per cent, increase last May. In addition
the manufacturers are insisting upon abolition of extra pay
for overtime and a basic nine-hour day, instead of eight
hours, for the "outside" or unskilled workers, who are mem-
bers of the pulp, sulphite and paper mill workers.
The mills represented in the dispute are: Abitibi Paper.
Co., J. R. Booth Co., Cliff Paper Co., De Grass Paper Co,
Eddie Paper Co., Fort Frances Pulp and Paper Co., Grand
Lake Bag Co., Hannah Lake Bag Co., Hannah Paper Co.,
Hoboken Paper Co., International Paper Co., Itasca Paper
Co., Minnesota and Ontario Paper Co., Parker- Young Paper
Co., Pejebscot Paper Co., St. Maurice Paper Co., St. Regis
Paper Co., Schroon River Paper Co., Sherman Paper Co.,
Spanish River Pulp and Paper Co., and the Union Bag and
Paper Corporation.
C. H. L. Jones, manager of the Spanish River mills in
discussing the situation, said that a readjustment of wages
was necessary if the mills were to continue in operation.
The present state of the paper-making industry was not as
bright as it had been pictured, he stated, and only by a con-
siderable lowering of the costs of production could the mills
be kept running on full time and continue to pi-oduce paper
at the prices prevalent. He said that for some time past the
company had been making paper for stock in order to keep
the plant going even several days a week.
In New Brunswick, the Fraser Companies, Ltd., are
facing labor trouble which has arisen from the demand of
the local Timber Workers union that the proposal for the
return to the ten-hour day be abolished. A nine-hour day is
demanded.
Riordon's Situation
In reference to reports published to the effect that the
Kipawa mill of the Riordon Co., Ltd.,' located in the Temi-
skaming district, had closed down, the management at Mont-
real stated that the early reports of the closing have been
exaggerated. Instead of 2,500 men being out of employment
only 250 have been laid off. The mill will be closed down
for about two weeks, and during that time some repairs will
be effected. This is the first time the mill has been able to
close since it started operations about eighteen months ago.
It was stated that this was a logical time for the company to
make a temporary closing of the mill inasmuch as the market
for pulp is dull at the moment, but is not expected to con-
tinue so for long. It is understood that the company has a
large amount of pulp on hand for which there is no market.
By closing down for two or three weeks it is expected that
this surplus will be absorbed to a large extent, and then the
plant will be opened up again.
According to T. W. McGarry, president ofthe Whalen
Pulp and Paper Co., all three mills of the company in British
Columbia are operating at full capacity under contracts made
last fall. The larger portion of the sulphite produced is
being shipped to Japan. The monthly gutput is approxi-
mately 5,000 tons of sulphite. Both sawmills of the com-
pany are also operating to capacity of 250,000 feet per day,
and one of the two shingle mills is operating. Contracts for
sulphite will keep the pulp plants running for some time yet.
Flour mills in the west are running on a half-time basis,
and it is likely that this condition will continue until the
time when the 1921 crop begins to enter the elevators. An
authority in the industry states that the reason for the slack-
ness that has existed for some time is, of course, the entire
absence of any export trade. Great Britain has been under
the direction of a royal commission insofar as her grain and
milling business is concerned, and one of the large outlets
for the Canadian mills was thus done away with. This out-
let is returning now, however. Decontrol took place in Great
Britain on April 1, with the result that a few orders have
been sent out to the mills in this country" These orders
are not great and it is difficult for the millers themselves to
judge whether or not any considerable increase may be ex-
pected for some time. The importers in Great Britain are
not in a position to know exactly what they may be able to
handle, and buying is extremely cautious.
The Steel Trade
No marked increase in buying has yet resulted from the
cut in prices by the United States Steel Corporation, but as
other mills bring their rates more into line with the levels
set there should be an improvement as it is lack of stabiliza-
tion in prices of steel products that has made for dullness
generally in this field of industry.
The nine months' report of the Algoma Steel Corpora-
tion, covering the period ended March 31 last, shows that
there has been &■ falling off in shipments since October, 1920.
It is a notable fact, however, that the output of the various
products during the nine months was greater than the same
period in 1919-20. Tons of pig-iron produced from July to
March were 292,083, compared with 199,558 tons, while tons
of steel ingots produced were 251,629, as compared with
223,832 tons previously.
Unfilled orders for iron and steel at the end of March
were, approximately, 20,000 tons. The rail mill was closed
on March 19, after completing two contracts, but mills were
in operation at the end of the month, making rail fastenings,
merchant bars and small shapes.
Operations of Canadian coaJ companies have been greatly
reducecl, particularly in Nova Scotia. With the opening of
navigation and a more normal situation in the steel trade,
the demand for products of coal companies will increase.
The Algoma Steel Corporation in a circular to share-
holders states that negotiations with the Canadian railways
for the purchase of rails have been in progress for some
time, and directors expect to close contracts shortly for satis-
factory tonnages.
It is understood that Armstrong, Whitworth of Canada,
Ltd., are contemplating closing down entirely their works at
Longueuil, Quebec. Recently only their small tool shop has
been operating and they have built up a large stock of all
kinds of standard tools, such as, twist drills, milling cutters,
and reamers. Their stock includes a quantity of their famous
brands of high speed and carbon tool steels, in all the usual
sizes.
On behalf of the management it is stated that owing to
the failure of the Dominion government to give them any
tariff protection on the manufacture of locomotive steel tyres
they closed down their tyre mill some twelve months ago,
and will not reopen their mills again, until such protection is
given. Most of the raw materials they require have to be
brought from the United States and are dutiable. No pro-
tection, however, is afforded them under the Dominion tariff
for their finished product. This tyre mill is the only one in
Canada.
Dominion Bridge Co., emphatically denies the rumor of
closing down. It declares that it has orders enough to keep
busy for six months. Its mills are working with sixty-five
April 22, 1921
THE MONETARY TIMES
The Imperial
Guarantee and Accident
Insureuice Company
of Canada
Head Office, 20 VICTORIA ST., TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $200,000.00
Authorized Capital - - $1,000,000.00
Subscribed Capital - - - $l,00f), 000.00
Government Deposits - $111,000.00
Ll^ IVT n PI 1\T GUARANTEE AND
^^ ■!" *-' ^-^ •'■^ ACCIDENT COY., Limited
Head Office for Canada - Toronto
Employers' Liability. Elev-itor, Contract. Personal Accident. Fidelity
Guarantee. Internal Revenue. Sickness. Court Bonds.
Teams and Automobile.
AND FIRE INSURANCE
The Western Mutual Fire
Insurance Co.
Head Office
Didsbury, Alberta
President-
-H. B. ATKINS
M.L.A.
PARKER R. REED.
LARGEST ALBERTA
Manaaing Director
FIRE MUTUAL
CANADIAN STRONG PROGRESSIVE
^»& ^ft^^^MUH&^wmistmt
FIRE INSURANCE
AT TARIFF RATES
Merchants Casualty Co,
Head Office : 'Winnipeg, Man.
The
supervis
Embraci
St progressive 4
of the Domini
the entire Domil
npany in Canada. Operating under the
and Provincial Insurance Departments
n of Canada.
SALESMEN NOTE!
- accident and health policy is the most liberal protection offered
\ of 81.00 per month and up.
Covers o\'er 2.500 different diseases.
Pays for Life if disabled through Accident or
Illness.
Fifty per cent- e.xtra if confined to hospital.
Pays for Accidental Death, tjuat
. Sur
hildren of the Insured.
Good Opening* for Liae Agents
rn He.ad OfKce, Royal Bank Bids. Toronto
OfKcc Electric Railway Chambers.
Winnipeg. Man.
Commercial Union Assurance Co.
Limited, of London, England
Capital Fully Subscribed » 14,750,000
Capital Paid fp 7.375.000
Total Annual Income Exceeds 75.000,000
Total Funds Exceed 209,000.000
Head Office Canadian Branch:
COMMERCIAL UNION BUILDING - MONTREAL
H.\LHl:Kr.l- K1;K"H, AssistamManaci K. W S .HII'LIM;. MA^A.]| N
Toronto Office - 49 WelliDgton Street East
(■.l-:o K HAItCRAFT. (General Auent fur loroiiu. ..rvl County i.f Wnk
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
:md A. B.C.. Sth Edition
CALGARY, CANADA
(C
The
Monetary T
imes"
vifill be sent you for four months
our TRIAL SUBSCRIPTION plan
o"
$ l.OO
Jl
i8t Bend a
dollar bill and your name
and addresH.
Automobile— 1 92 1 —Season |
Policies to cover ANY or ALL motoring risks 1
ATTRACTIVE AGENCY CONTRACTS ■
I British Empire Fire Underwriters |
I 82-88 King Street East, Toronto |
■ Assets Exceed $4,000,000 1
iiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiJiiiw
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
30
THE MONETARY TIMES
Volume 66
per cent, of the pre-war noi'mal staff, which has been re-
duced by rearrangements of the plant during the war. The
few members of the office staff who have been released were
men engaged specially for war work.
The Hewetson Co., of Brampton, Ont., manufacturing
children's shoes, is opening a new fa>ctoi'y at Acton, Ont.
One of the largest wholesale hardware and plumbers'
supplies firms in Canada has purchased a site in London,
Ont., and will erect a large modern warehouse as soon as
the plans are drawn up, according to an announcement by
the chamber of commerce. The warehouse will be located
on the property 298-306 York St., and in all probability will
cost in the neighborhood of $200,000. The company is Crane,
Ltd., of Montreal, who also have large branch warehouses
at Toronto, Winnipeg and Vancouver.
NEW INCORPORATIONS
Capital for Week Ended April 20 is $14,427,100, Compared
with $24,490,000 Previous Week
Authorized capital of $14,427,100 is represented by com-
panies whose incorporation was reported to The Monetary
Times during the week ended April 20, compared with $24,-
490,000 for the previous week. A comparative summary by
provinces is as follows: —
Week ended Week ended
April 13. April 20.
Dominion $11,670,000 $ 6,.565,000
Alberta 1,808,000
British Columbia 16.5,000 3,620,000
Manitoba 2,650,000 905,000
New Brunswick 233,000 59,000
Ontario 6,880,000 2,842,500
Prince Edward Island 20,000
Quebec 839,000 425,600
Saskatchewan 225,000
Totals $24,490,000 $14,427,100
The following is a list of companies recently incorporated
under Dominion charter, with head office and authorized
capital: C. S. Allen and Co., Montreal, $150,000; Phelpa
Power and Light, Ltd., Toronto, $50,000; Queen Dress and
Waist, Ltd., Montreal, $200,000; Smart Apparel Co., Ltd.,
Toronto, $50,000; Mack Trucks of Canada, Ltd., Toronto,
$50,000; Canadian Combustion Co., Ltd., Toronto, $60,000;
Equity Pictures Corp., Ltd., Montreal, $50,000; Glass Casket
Co., Ltd., Montreal, $2,000,000; Wilson Methods, Ltd., To-
ronto, $100,000; Atlantic Gold and Mediterranean Steamship
Co., Ltd., Montreal, $250,000; David Publishing Co., Ltd.,
Montreal, $50,000; Acme Securities Corp., Ltd., Montreal,
$5,000; A. W. O. Stewart and Co., Ltd., Toronto, $50,000;
Petroleum and Transport, Ltd., Montreal, $3,000,000; Water-
loo Bedding Co., Ltd., Waterloo, $200,000; Scythes Vocalion
Co., Ltd., Toronto, $200,000; Federated Film Exchanges, Ltd.,
Montreal, $100,000.
Provincial Charters
The following is a list of companies recently incorporated
under provincial charter: —
British Columbia. — Capital Garage, Ltd., Victoria, $10,-
000; Penticton Curling Association, Ltd., Penticton, $25,000;
Celtic Club, Ltd., Victoria, $10,000; Smith and Bryson, Ltd.,
Pavilion, $25,000; Grassy Bay Tim.ber Co., Ltd., Vancouver,
$150,000; Taylor Meat Packers, Ltd., Vancouver, $25,000;
Norfolk Paper Co., Ltd., Vancouver, $10,000; Reliable Auto
Express and Messenger Delivery Co., Ltd., Victoria, $25,-
000; Rogers Produce Co., Ltd., Victoria, $20,000; Pogorly
Safety Systems, Ltd., Vancouver, $50,000; Sun Drug Co.,
Ltd., Vancouver, $10,000; Collins' Taxi, Ltd., Vancouver,
$20,000; A. B.C. Fisheries, Ltd., Victoria, $10,000; R. J.
Gurney Co., Ltd., Victoria, $10,000; Gilbert Non-Puncturable
Auto Tube, Ltd., Vancouver, $100,000; Homer Publishing Co.,
Ltd., Vancouver, $100,000; George Rowcliffe, Ltd., Kelowna,
$20,000; Albion Oil Co., Ltd., Vancouver, $3,000,000.
New Brunswick. — River Charlo Building Co., Ltd.,
Charlo, $10,000; Charters, Ltd., Moncton, $49,000.
Manitoba.— United Produce Co., Ltd., Winnipeg, $15,000;
West Teulon Rural Credit Society, Teulon, $20,000; Caseley
Lawrence Auto Painting, Ltd., Winnipeg, $50,000; Business
Farmers, Ltd., Oak Island, $20,000; Gimli Fisheries, Ltd.,
Winnipeg, $100,000; Williard Gumming and Co., Ltd., Winni-
peg, $30,000; Builders' Mutual Supply Co., Ltd., Winnipeg,
$500,000; Central Investment Co., Ltd., Winnipeg, $.50,000;
Swiss Dry Cleaners and Dyers, Ltd., Winnipeg, $20,000; Wm.
E. Reid Co., Ltd., Winnipeg, $100,000.
Ontario. — J. A. Leduc and Co., Ltd., Sturgeon Falls, $25,-
000; Newburgh Dairy Co., Ltd., Newburgh, $7,.5O0; Aunt
Martha Chocolates, Ltd., Toronto, $135,000; Community
Builders, Ltd., Toronto, $500,000; Beamsville Arena, Ltd.,
Beamsville, $40,000; Timiskaming Pulp and Paper Co., Ltd.,
Toronto, $500,000; Hi-Speed Tools, Ltd., Gait, $40,000; Pater-
son Engineering and Construction Co., Ltd., Windsor, $100,-
000; Bingham's Downtown, Ltd., Toronto, $200,000; Queen
City Paper and Twine Co., Ltd., Toronto, $40,000; Acadian
Phonograph Co., Ltd., Toronto, $40,000; Oakville Motor
Products, Ltd., Oakville, $100,000; Canadian Iron Machine
Co., Ltd., Woodstock, $40,000; Turn-0-Stop Manufacturing
Corp., Ltd., Toronto, $1,000,000; Weisbrod Fur Co., Ltd.,
Toronto, $75,000.
Quebec— Clen-Mathers Press, Ltd., Montreal, $20,000;
Schulman Choplin Canada, Ltd., Montreal, $49,000; Associated
Engravers of Canada, Ltd., Montreal, $9,600; Mechanical
Specialties, Inc., Montreal, $49,000; Plateau Cloak and Suit
Co., Montreal, $99,000; Napoleon Gignac, Inc., Quebec, $99,-
000; D. I. Pouliot, Ltd., Quebec, $80,000; Hotel Central, Ltd.,
Henryville, $20,000.
INSURANCE LICENSES AND AGENCY NOTES
The Springfield Fire and Marine Insurance Co. has been
authoried to transact in Canada the business of hail insur-
ance, in addition to the classes for which it is already
licensed.
Certificate of registration has been granted to the Pre-
ferred Accident Insurance Co. of New York to transact the
business of accident, sickness and automobile insurance in
the province of Manitoba. G. K. W. Watson is chief agent
for the province.
The Toronto Casualty and Marine Insurance Co., with a
capitalization of $1,000,000, and head office in Toronto, is to
be incorporated under the Ontario Insurance Act, which will
permit them to write the following lines of insurance:
Casualty, automobile, fidelity and surety, property and
marine. The principal officers are as follows: President and
general manager, A. J. Walker-Greig, Toronto; marine man-
ager, T. M. Murdoch, Toronto; chief medical director, D.
Forbes Godfrey, M.P.P., Mimico, Ontario.
R. de Grandpre has been appointed superintendent of
the newly opened Quebec department of the Continental,
Fidelity Phenix and Fidelity Fire Underwriters.
The Motor Union Insurance Co. announces the appoint-
ment of Herbert Freeman as fire surveyor to be attached to
chief office, Toronto. Mr. Freeman, who is well known in the
Ontario field, will render expert service to the Motor Union
agents in connection with its general fire business.
A company under the name of the Prince Rupert Insur-
ance Agencies, Ltd., has been formed to take over the busi-
ness conducted by Peck, Moore and Co., Prince Rupert, B.C.
At the present the company is confining its operations to a
general insurance business only.
Gordon F. Rennie, who has been general agent in British
Columbia for the Insurance Co. of North America and the
Alliance, of Philadelphia for the past two years, has been ap-
pointed second assistant manager of the Pacific Coast de-
partment of the North America and allied companies, with
headquarters at San Francisco. Mr. Rennie has been located
at the department office since the first of the year, occupy-
ing the desk of the assistant manager, McKee Sherrard,
who has been confined to his home by illness.
April 22, 1921
THE MONETARY TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE
ASSETS, Dec. 31, 1920
$136,000,000.00
$ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto ' ' Solid as th*" Continent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID .\S THE CONTINENT"
HEAD OFFICE
TORONTO
Important Features of the Ninth Annual Report
WESTERN LIFE ASSURANCE CO.
HEAD OFFICE WINNIPEG, MAN.
Assurances, New and Revived «1, 308, 750. 00
Preitiiums on same .. .44.70.S 25
Assurances iu Force •4,233,907.35
Total Premium Income 128,286.67
Policy Reserves 291 ,969.00
Admitted Assets 358,667.36
Average Policy 2,306.04
Premium per SI, 000 Insurance — Collected in
Cash 30.30
For p.irticulars of a sood aRency :<pr'v to
ADAM REID. Managing Director WINNIPEG
The Mutual of Canada Day by Day
DurinK tlic jc.ir Isr.'O the average payments in henetif; of different kind'i
to benetici.tries and policyholders amounted to $11,500 for every
working day throushout the year, a total of 83.49.'.830. Every year
the payments have increased, the total made since the establishment of
the company being over thirty-three millions. The funds in hand to
guarantee future payments amount to forty-two millions -so that the
company has either paid or holds in trust more than S7.S.0(>0,()0(!. This
total exceeds the premium income by eight millions. These figures show
thit the .Mutual Life of Canada is making good on all contracts entered
into in past years. It is not only "making good." it is ' making better."
for the proKts alone actually paid during the years since establishment
amount to eight millions of dollars, a record of economy and service of
which any life ofHce might justly be proud.
The Mutual Life Assurance Co. of Canada
Waterloo Ontario
"For
the
man
of
vision."
Policies
cumstar
which ma>
ces The '
beadjuste
■ Canadian
d to meet
■ Series is
changed cir-
sucd only by
The London
HEAD OFFICE
Life Insurance Co.
LONDON. CANADA
ONTARIO ORGANIZER WANTED
THE CONTINENTAL LIFE INSURANCE COMPANY, TORONTO,
desire the services of a bright, capable young man as ONTARIO
ORGANIZER.
Apply to S. S. WEAVER
Eastern Superintendent
THE CONTINENTAL LIFE BUILDING,
Bay and Richmond, - - TORONTO, ONT.
A
RECORD YEAR
showing a record in Applicat
ions received— in Gain
of Business— and in all that ma
Ices for solid expansion
is the gist of The Great- Wes
t Life Assurance Com-
pany's Statement for 1920.
The official Report is now read
y. Those interested in
Life Insurance developments a
hculd obtain a copy —
mailed on request.
Over $256,850,000 now in force, 1
THE GREAT- WEST LIFE ASSURANCE COMPANY
DEF^T. "K ■
HEAD OFFICE
WINNIPEC
The Western Empire
Life Assurance Company
Head Office : 701 Somerset Building, Winnipeg, Man.
SASKATOON
EDMONTON
VANCOUVER
G E
N
E R A L
ACCIDENT
FIRE
AND LIFE
ASSURANCE
CORPORATION,
LIMITED,
OF PERTH,
SCOTLAND
PELEG HOWLAND.
Canadian Advisory Director
Toronto Agents. E
THOS H.
.Manager fo
L. McLean, limited
HALL.
Canada
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office for Canada, Hamilton, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NOR.MA.S S. JOKES. Manager R. J. MAHONY. Asst Manager
FARMERS'
FIRE & HAIL INSURANCE COMPANY
FIRE. HAIL AND AUTOMOBILE INSURANCE
Head Office, CALGARY. Saskatcbewao Office, REGINA
■M. P. JOHNSTG.V. Managing Director
THE MONETARY TIMES
Volume 66
News of Municipal Finance
Vancouver Report Shows Revenue Deficit, but Treasury Notes Were Paid in Advance of Maturity
—Calgary Had Surplus— Utilities Shovk'ed Small Loss— Hamilton Hydro Commission is Making Good
Financial Progress— Gait Tax Rate is Lower, While New Westminster Strikes Same as in 1920
New Westminster, B.C. — A tax rate of 36 mills has been
struck, being the same as in 1920.
Gait. Ont. — The city council has fixed the tax rate for
1921 at 38 mills, which is a mill less than for 1920.
Lethbridge, Alta. — Assessment valuation for 1921 is $12,-
556,215, according to the report of Commissioner Meech.
This sum is made up of land, $6,383,710; buildings, $4,117,-
130; personal, $1,909,580; super, $145,795. The assessment
is a little more than that of 1920, which was $12,468,930 for
all pui-poses, with land, $6,464,095; buildings, $4,001,880;
personal, $1,853,290; super, $149,665. For school purposes
the total assessment stands at $13,306,620; public schools,
$12,536,200; separate schools, $770,420, as against $13,211,150
in 1920; public schools, $12,465,110; separate schools, $746,040.
The tentative tax struck by the city council last week
gives a mill rate all round for public school taxpayers of
44.68, as compared with 42 in 1920, an increase of 2.68. With
the government tax, the rate stands at 46.18 mills, as against
43 mills in 1920, an increase of 3.18 mills. In the case of
separate school taxpayers the total, excluding the govern-
ment tax, stands at 45.68 mills, as against 48.65 mills in 1920,
or with the government tax, 47.18 mills, as against 49.65 mills
in 1920.
Hamilton, Ont.— A profit of $16,975 is shown in the
annual statement for 1920 of the local Hydro commission.
This total was compiled after paying the surcharge of ap-
proximately $25,000 to the Ontario commission on account
of under-payment of power cost throughout the year. The
total reserve capital now amounts to $640,275. The total
plant investment in Hamilton amounts to $1,485,009, against
which is still outstanding $1,002,834 of debentures issued by
the city of Hamilton on the Hydro account. The accumulated
sinking fund for payment of these debentures amounts to
$176,935, in addition to $17,161 reserve for payments on
serial debentures.
These reserves are further supplemented by a deprecia-
tion reserve of $303,187. This account is used for replacing
plant and accessories as necessary when the equipment wears
out or becomes obsolete. The gi-oss surplus accumulated since
the beginning of operations in 1912 now totals $640,275.
In addition to this the local Hydro commission has ac-
cumulated and paid for $38,422 on account of the local eom-
misisons share or equity in the general transmission system
of the Ontario commission. With all the reserves taken into
consideration, the statement shows that two— thirds of the
commission's total indebtedness to the city is now pro-
vided for.
Calgary, Alta. — According to the annual report of the
city auditor, general revenue of the city shows a surplus of
$13,959. Losses in the two main utilities, as the outcome
of the year's operations, are shown as follows: Street rail-
way, $11,635; waterworks, $18,623; total loss, $30,259. How-
ever, the electric light and power department shows a profit
of $27,399, which subtracted from the total losses of the two
former utilities, gives a reduced loss in the three main utili-
ties of only $2,860.
In connection with these utilities, states the report, a
condition has arisen, which, in the auditors' opinion, calls
for the careful consideration for both the city council and
taxpayers. They refer to the necessity all three utilities are
under for providing capital assets out of current revenue.
For several months past the respective superintendents have
been representing to the council that the proper conduct of
the utilities called for minor capital extensions which amount
to a substantial value in the aggregate, points out the report.
Owing to debenture funds being exhausted, by-laws were
submitted to the ratepayers for approval last December for
both the street railway and waterworks, but both failed to
pass. Pending the submission of these By-laws, authority was
granted to the council to charge the cost of the needed
equipment to net revenue, which account has proved inade-
quate to sustain the added burden. In this connection the
report points out that the ratepayers were not n^ade
acquainted with the actual situation, otherwise they would
not have voted against these by-laws. Had they authorized
by-laws the cost would have been automatically spread over
a period of years, which is the correct way of providing the
cost of capital assets, whereas, the rejection of the by-laws
forced the city to provide the cost out of the revenues of a
very limited period, thus incurring a very real risk of an all
round increase of utility rates, which could probably be
avoided if authority were granted for the capitalization of
the necessary extensions. In the event of the by-law being re-
submitted, the auditors would suggest that full publicity be
given to the real nature of the financial issues the tax-
payers will be asked to vote upon.
The sinking fund shortage is shown to be $3,018,612, the
figures being: Present value of sinking fund, being the
amount which the fund, including its earnings, should have
on hand at December 31, 1920, $5,902,406; amount of sinking
fund, $2,883,793; difference equals the above shortage.
Vancouver, B.C. — Expenditures exceeded revenue by $65,-
728 in 1920, according to the annual report of A. J. Pilking-
ton, city compti'oller. Actually, however, the city operated
within its revenues, as on January 1, 1920, it redeemed out-
standing treasury notes totalling $900,000, and payable in
New York, at a cost of $76,154 in exchange. Of these notes
$600,000 were retired in advance of maturity ^he due dates
being January, 1921, and January, 1922.
Of a total income from general revenue of $6,473,451,
there was a deficit of $103,950, but a surplus in waterworks
revenue of $38,221 transferred to general revenue reduced
the deficit to $65,728. The gross revenue from the water-
works department was $706,953, and the net revenue after
discounts and allowances had been deducted was $515,874, the
discounts totalling $191,079. Expenditures in the department
totalled $478,065, operations and maintenance costing $213,-
054, sinking fund and interest $245,010, and reserve for re-
placements and renewals $20,000.
Capital assets of the city totalled $46,510,906, allowing
a surplus of $10,684,080 over capital liabilities. Current
assets total $52,739,977. The city has now acquired title to
the properties which fell to it at the 1919 tax sale, the total
cost, including taxes to the end of 1919, being $330,647 (sub-
ject to some small adjustments still pending). At the 1920
tax sale properties with an upset price of $193,077 fell to
the city, subject to the usual right of redemption by the
owners.
Tax arrears, which at the first of the year stood at $5,-
216,455 (including approximately $300,000 of interest in con-
solidated ari-ears), have been reduced to $3,817,632 (including
approximately $165,000 interest on consolidated arrears), or
approximately $3,652,632 net, as against a maximum arrear-
age of $5,456,453 at the end of 1918— a reduction of about
$1,805,000. Of this approximately $430,988 is represented by
property falling to the city at tax sales, the balance of ap-
proximately $1,371,000 having been collected in cash.
At the close of 1919 the following treasury notes were
outstanding: 1917 issue. $415,000; 1919 issue, $2,541,000.
Total, $2,956,000. Against these the city had funds in hand
for redemption amounting to $1,042,167. On Januai-y 1, 1920,
$900,000 of the 1919 issue wei-e retired, as already mentioned,
and the 1917 issue were also retired before March, 1920, by
the firm who floated the 1919 issue. The total notes now out-
standing amount to $1,700,000, against which the city had on
deposit in trust at December 31, 1920, $754,201 available for
their redemption as soon as conditions of exchange warrant.
April 22, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
nOIISSERWlODv<''C>MRV4r
<MVe*TMENT BANKCRS
• CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES.
12 KING ST. EAST
TORONTO
REAL ESTATE
Farm Lands City Properties
Building Management Rentals
OSLER, HAMMOND & NANTON
WINNIPEG
City of St. Catharines
6.V;
= COUPON BONDS
March
Maturing serially
1, 1922 to March 1, 193()
Principal and
September 1 i
{ Denoi
semi-annual interest (March 1 and
payable in Toronto or St. Catharines
ninations. $500 and $1,000
PRICE
: To Yield 6.30%-6.257,
Harris,
C.P.R. liuildin
TOKONTO
Forbes & Company
INCORPORATE!)
g 21 St. John Street
MONTREAL
A Newspaper Devoted to
Municipal Bonds
T~'HERE is published in New \'ork City a daily
* and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond oflTeringfs.
Write for free specimen copies
THE BOND BUYER
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c.
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14
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TORONTO
Austrian Exchange Strong
Recent stro igth in Aii>tri*n Kxclianne. which has earned
cheques on X'lenna up to uroiiml .OUai. has revived interest in the
possibility of a loan to that country, probably by London insti-
tutions. Austrian exchanRc has advanced sharply in London,
and the rise in tlie New York market has been in sympathy with
that m -vcment. Dutch bankers have already been aiding
Austria Hnancially. and negotiations with London bankers arc
reported to be in pro^iress.
Fundamentally the situation seems to have passed its worst
stase'i. and now. as econstruc live measures at home are applied,
and the disposition to render assistance from the outside becomes
more appirent. the speculative assurances of Vienna exchange
are material y improved.
For quotations at*ply fn
R. M. HEFFERNAN & CO., Ltd.
Jackson Building, Ottawa
THE MONETARY TIJIES
Volume 66
Government and Municipal Bond Market
Prices Have Slipped Back Slightly in the Past Few Weeks —
Alberta Securities are Offered to Yield 6.25 Per Cent. —
Several Municipalities Make Loans During Past Week
INDICATIONS are that the goven-mient kjicI municipal bond
market has slipped back slightly in the past few weeks.
This is not surprising in view of the great activity which
has prevailed since the beginning of the year. In January
the province of Alberta floated a loan of $2,000,000, matur-
ing in fifteen yews, and had to pay 6.39 per cent, for its
money. The bonds were offered to the public to yield 6.20
per cent. This week the province made a similar loan on
a 6.37 per cent, basis, and these securities are offered to
yield G.25 per cent. There have been no provincial bond
sales recently, but the above comparison serves to show
that there has been a weakening in prices.
The trend of Victory loan prices since the beginning of
March also reveals a weakening in all issues with the excep-
tion of 1922's and 1927's. The following figures illustrate: —
Control Close Close Close Close
price. Jan. 26. Mar. 2. Apr. 13. Apr. 20.
1922 98
1927 97
1937 98
1923 98
1933 961/2
1924 97
1934 93
98%
98
97%
98 1/8
98%
99%
99%
99%
99%
98%
98
97 Va
971/4
98
98%
98
97%
96%
96%
96%
96%
95%
94%
93%
Coining Oflerings
The following is a list of debentures offered for sale,
particulars of which have been given in this or previous
issues: —
Tenders
Borrower. Amount. Rate %. Maturity. close.
St. Boniface, Man. . . $ 273,233 5 & 6 Various Apr. 25
Miniota R.M., Man. . 83,500 51/2 Various Apr. 25
Regina, Sask 154,010 6 & QVz Various Apr. 25
Danville, Que 33,000 6 Various Apr. 25
Essex Border Utilities 38,209.60 GVa 27-instal. Apr. 26
Rockwood R.M., Man. 70,000 6 30-instal. Apr. 28
Brockville, Ont 30,000 6 lO-inst&l. Apr. 28
Havelock, Ont 23,420 6 20-years May 2
Ford City, Ont 75,000 6 1/2 25-years May 3
Essex Border Utilities, Ont. — Tenders will be received
until April 26, 1921, for the purcha.se of $38,209.60 6V2 per
cent. 27 instalment debentures.
Brockville, Ont. — Tenders will be received until April 28,
1921, for the purchase of $30,000 6 per cent. 10-instalment
sewer debentures. C. A. McLean, treasurer.
Ford City, Ont. — Tenders will be received until 5 p.m..
May 3, 1921, for $75,000 61/2 per cent. 25-year public school
debentures. (See advertisement elsewhere in this issue.)
Havelock, Ont. — The village is asking for bids up to
Mr.y 2, 1921, on $23,420 6 per cent, debentures, maturing
from 1927-40, and dated November 1, 1920. T. P. Lancaster,
treasurer.
Danville, Que. — Tenders will be received up till April
25, 1921, for the purchase of $18,000 6 per cent, debentures
maturing May 1, 1940. Offers are also invited for $15,000
6 per cent, debentures maturing November 1, 1957. These
are the same issues which were advertised in March, but
which were not sold. C. C. Brown, secretary-treasurer.
Debenture Notes
Belleville, Ont. — The city will have an issue of deben-
tures for sale shortly.
Halifax, N.S. — The city will seek legislation to borrow
$500,000 for sewer and water extension work.
Long Branch, Ont. — The Etobicoke council has author-
ized an issue of debentures for school purposes to the extent
of $65,000.
Manitoba. — The province will require $5,870,000 for ex-
penditures on capital account during the present yea-r, ac-
cording to Hon. Edward Brown, provincial treasurer.
Saskatchewan. — The following is a list of authorizations
granted by the Local Government Board from April 2 to 10,
1921:—
School Districts. — 8 per cent. 10-instalments — Antonio,
$1,000; Glengariff, $1,050; Kelvingrove, $2,400. 8 per cent.
10-years annuity— Brindle, $4,000; Formby, $4,600. Lang-
ham, $33,000 8 per cent. 20-years annuity.
Rural Telephone. — Wartzburg, $300 8 per cent. 10-years
annuity.
Bond Sales
Stettler, Alta. — An issue of $12,000 7 per cent. 10-year
electric light debentures has been sold to local purchasers
at par.
Pipestone R.M., Man — Harris, Read and Co. have bought
$80,000 5i.i per cent. 30-year good roads debentures at a
price of 90.25.
Sault Ste. Marie, Ont. — Versailles-Vidricaire-Boulais,
Ltd., have purchased $85,000 6 per cent, bonds of the Sep-
arate School Trustees, and M'e offering the securities at a
price to yield 6.25 per cent.
Cap de la Madeline, Que. — Versailles-Vidricaire-Boulais,
Ltd., have purchased an issue of $40,000 6 per cent, bonds
of the town, maturing from 1921 to 1950, at 96.07, which is
on about a 6.39 per cent, basis.
Craik S.D., Sask. — The municipality was unable to re-
ceive any tenders for its $33,500 20-instalment debentures.
The securities, which bear interest at 71/2 per cent., were
sold to the Regina Sinking Fund at par.
Sudbury, Ont. — Dyment, Anderson and Co., and Turner,
Spragge and Co., have purchased $54,000 6 per cent. 20-in-
stalment debentures at a price of 91.213, which is on about
a 7.14 per cent, basis. A. E. Ames and Co., and C. H. Bur-
gess and Co. bid 90.41, while Wood, Gundy f-.nd Co. offered
90.06.
Alberta. — The Alberta legislature has passed amend-
ments to the act respecting saving certificates. These amend-
ments permit the issuance of such certificates up to five million
dollars at a rate not to exceed 5 per cent. These certificates
are issued against outstanding revenue of the province, and
the issue is limited at present to three million dollars. Pro-
vincial Treasurer Mitchell told the house there is $3,637,000
in revenue outstanding, and that the total number of certi-
ficates issued IS $2,840,000. Under the machinery of the
amendments it was intended to call in the money loaned out
at 5 per cent, interest over three years and to take instead
ten-year bonds bearing 6 per cent, interest.
Saskatchewan. — The following is a list of debentures
reported sold by the Local Government Board from April 2
to 10, 1921:— "
School Districts.— St. Joseph de Dauphinias, $16,000 8
per cent. 20-years; Harris, Read and Co. Fairwell Creek,
$3,500 8 per cent. 15-years; Nay and James. Parkbeg, $1,400
8 per cent. 10-years; A. E. Martin, Moose Jaw. Belle Plaine,
$15,000 8 per cent. 20-years; Regina Public School Sinking
Fund. Perdue, $1,500 8 per cent. 20-years; C. C. Cross and
Co.
April 22, 1921
THE MONETARY TIMES
Two
Attractive Investments
are offered in the following bonds :
City of Toronto
6% Bonds, due 1st March. 1928-40, yielding 6
City of Winnipeg
6 ' Bonds, due 15th Feb.. 1941, yielding 6.05%
Orders for any amount may he juiretl or telephoned
at our expense. Write for our list of offerings.
Wood, Gundy & Company
Canadian Pacific Railway Buiidint;
Toronlo Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
IKVESTWtHT-$eMIC:X
ass^^asam
In Eight
Financial Centres
We maintain thoroughly equipped offices for
the purchase, sale and exchange of Govern-
ment, Municipal and Corporation Bonds.
These offices are at .Montreal. Toronto, Hali-
fax, St. John, Winnipeg, Vancouver, Nevir
York, and London, England.
We solicit inquiries from investors who have
honds and stocks to sell, or from those who
wish to buy or exchange. Orders accurately
and efficiently executed.
If you wish to read a stimulating review of
current business conditions, write and ask us
to mail you this month's Investment Items.
Royal S
ecuritics
•ORATION
LIMITED
.MONfKEAL
TORONTO H.XLIFAX ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. Enj.
W. L. .McKI.\.\'ON
DEA.N H. PETTES
We Buy and Se
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Covcrnmcnt and Municipal Bonds
IVIcKINNON BUILDING ■:• TORONTO
Telephone Adelaide 3870
Increase the Return
on Your Investments
Send foi our circular describing
Howard Smith Paper Mills
Bonds, rvhich arc being offered
_ at u very attractive price
R. A. I>ALY & Co
Province of Alberta
15 Year 6% Gold Bonds
Denominations. $1000 and $500
Dated April 1st, 1921
Due April 1st. 1936
Half-yearly interest payable 1st April
and 1st October at Toronto, Montreal
or**Edrrionton at holder's option.
Price: 97.59 to yield
6.25%
W. A. MACKENZIE & CO., Limited
Government uti^ Mumcipal Bonds
Corporation Securities
42 KING STREET WEST
TORONTO CANADA
THE MONETARY TIMES
Volume 66
RuiK.l Telephones.— East Mount, $8,000 8 per cent. 15-
years, Mountain View, $700 8 per cent. 15-years; C. C. Cross
and Co. Dcwar Lake, $2.5,900 8 per cent. 15-years; T. W.
Brown, Saskatoon.
Acton, Ont. — Harris, Forbes and Co., Inc., have pur-
chased $18,000 (JVa per cent. 30-instalment debentures at
99.079. Tenders received were as follows: —
Harris, Forbes & Co., Inc 99.079
A. E. Ames & Co 98.84
Brent, Noxon & Co ! 98.06
C. H. Burgess & Co 96.362
.Mberta. — With pretty close bidding the province sold
$2,000,000 6 per cent. 15-year bonds, payable in Canada only,
to the Dominion Securities Corporation at a price of 96.42,
which is on ijbout a 6.37 per cent, basis. The tenders were
as follows: —
Dominion Securities Corp 96.42
G. L. Beaubien, Beausoliel, Ltd., Rene T. Leclerc,
Credit Canadian, Ltd., and Bank of Hochelaga . . 96.36
Wood, Gundy & Co., A. E. Ames & Co., and A. Jarvis
& Co 96.30
R. C. Matthews & Co., W. A. Mackenzie & Co., R. A.
Daly & Co., and Hanson Bros 96.06
C. H. Burgess & Co., McLeod, Young, Weir & Co., and
the Ca^nadian Debentures Corp 95.07
National City Co., Ltd., United Financial Corp., Ltd.,
and Harris, Forbes & Co., Inc 95.06
Minto Township, Ont Dyment, Anderson a^nd Co. have
purchased .$4,000 6 per cent. 10-instalment debentures at a
price of 97.42, which is on about a 6.56 per cent, basis. Ten-
ders received were as follows: —
Dyment, Anderson & Co 97.42
Bell, Gouinlock & Co 97.17
R. C. Matthews & Co 95.10
C. H. Burgess & Co 96.07
C. R. Clapp & Co 95.29
Niagara Falls Ont. — Wood, Gundy and Co. have been
awarded $250,000 5 per cent. 30-inst&lment debentures at a
price of 84..59, which is on about a 6.54 per cent, basis. The
following tenders were received: —
Wood, Gundy & Co 84.59
McLeod, Young, Weir & Co 84.53
Harris, Forbes & Co., Inc 84.47
A. E. Ames & Co 84.46
R. C. Matthews & Co 83.75
Ontario. — Hon. Peter Smith, provincial treasurer of
Ontario, is Inviting bids for $5,000,000 6 per cent, securi-
ties. Alternative tenders are requested, the issues being as
follows: Treasury bills, dated May 2, 1921, and payable
in six months from date; bonds dated May 2, 1921, and
maturing May 2, 1936. The securities are to be payable
in Canada only, and will be in denomin&tions of $1,000 or
larger.
GOLD AND SILVER PRODUCTION
000. oou
PRELIMIN.^RY returns of the world's output of precious
metals in 1920 show a further decline in gold and a slight
increase in the amount of silver, which is offset, however, by
a decline in its value. Some charts prepared by the Can-
adian Bank of Commerce showing this are reproduced here-
with. The British Empire is becoming more and more a
source of supply
of gold for the s
world, the Trans-
vaal mines alone
yielding 50 per
cent. of the
world's produc-
tion. This change
is due not to any
increased output
on the part of
British mines but
to the sharp fall
in that of mines
in other countries
during the last
five years. The
United States,
for example, with
a n output of
■4,868,000 fine
ounces in 1915,
valued at $101,-
035,700, produced
i n 1920 only
2,395,000 fine
ounces, valued at
$49,509,400. Can-
ada has, on the
other hand, with a comparatively small output, maintained
her figures fairly steadily during the period in question and
in the course of the last two years has actually increased her
output, producing in 1920 gold to the value of $15,853,000,
as compared with $15,580,000 in 1919 and $14,464,000 in the
previous year. All other parts of the British Empire, and
the majority of foreign countries, show considerable declines
during the last two years.
The outstanding feature of the silver situation is the
uncertainty as to the demand for this metal during the cur-
rent year. The phenomenal decline in price during the last
six months is not expected to be followed by a sharp reaction
iji(*„ii WoRLfi's Production of the
Precious Metals
(1913 to 1920 inclusive)
Legend
r!tr*°^ Transvaal
Canada
United States
Mexico
i Other British |!JIi||sTBp| Other Foreign-
Empire
■^ Countries
^^
^^^
—I
- (SI
1
m
1
1
1
i
I
\
!■ ■■
\
_i
;8
J
III
1
1913 U'lJ l^l.i
iSiti 1917 191!* 1919 I9:;ii
SILVER
or even a gradual rise. China has retired from the silver
market for everything but speculative buying, and India
is now the only country which is able and willing to
absorb this metal on a large scale. India is also
exporting large amounts of gold, which will increase the
holdings of western countries.
April 22, 1921
THE MONETARY TIMES
$25,000
CITY OF HALIFAX, N.S.
5; % BONDS
Due July hi, 1953
Denon
$1,000
Prin-:ipal and semi-annual interest pay-
able at Toronto. Montreal, Halifax.
Price : 92.85 and accrued interest
YIELDING 6%
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX. N.S.
New Issue
PROVINCE
OF ALBERTA
; 6%
BONDS
Due
April, 1936
Price 97.59 and
interest, to Yield 6, '2%
BOND
DEPARTMENT
The Canada
Trust Co^'xrANV
14 King St. E.
Toronto
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street • VANCOUVER, B.C.
C. H, -MACAL'LAV
J P. NICOLLS Vo
'V ^ Waghorn
Gwynn
& Co.
, Limited
^^L Stock and B
'ind Bro
kers
i ^ Kinancial 1
id Real E
state Agents
VANCOUVER
CROWN LIFE
LARGE BENEFITS TO POLICYHOLDERS
C.ish rayments tri Policyholders und BeneHciaries during 1920
amounted to $Jl.i.298.47.
In addition. S5O8.S13.00 was transferred to the Policyholders'
Reserve Fund and 847 275.28 to the Policyholders' Surplus. This
malies a sum total of $771,386.75 <or 91% of the total premium re-
ceipts) paid to or placed to the credit of Crown Life Policyholders
durint; 1920.
ParticipatinK Policyholders in the Crown Life are entitled to
9(1% of all proHts earned by the Company in .iddition to the Kuar-
Mntees contained in their policies. j."
Crown Life Insurance Co., Toronto
\ttnli wanfti in uirrtrestntlJ JiMricIs - ||
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches -SASKAFOON AND CALOAKY
Canadian ManriRers
INVRSTMKNtC0R1'0R.\T10S OPCANAn*. Lto.
London Office 4 Ore.it Winchcsfrr St . I' t
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
LOUGHEED & TAYLOR, Limited
l\ l'EST.\IE.\T SECLRITIES
210 Eighth Avenue West
CALGARY ALBERTA
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. W. MAHAN
President
I. A. WEST.MA.N
ManaRing Director
I AM the Underwood Book-keeping
machine. I am a typewriter, and
four distinct adding and subtract-
ing machines.
^ On ledgerwork I am a marvel. The
office manager of our firm says: "Our
accounts are always in balance. Post-
ings are proved daily. Our statements
are written simultaneously with the
postings."
^ Come and see me at work.
Book-keeping Machine Dept.
United Typewriter Company
Limited
1 35 Victoria j;St., Toronto
THE MONETARY TIMES
Volume 66
CORPORATION SECURITIES MARKET
Drastic Sliimp in Kiordon Common on Canadian Exchanges
This Wei'k — Steamships Also Move Down — New
Offering by Confectionery Co.
THERE was another upheaval in the Canadian stock
marlcet this week, and just at the time when senti-
ment was becoming- a little more cheerful, and when it seemed
that the markets had settled down from their extended periotl
of bearish tactics. The disturbance resulted from a sharp
decline in Riordon common, and a drop in Canada Steam-
ships, the former figuring more prominently in the situation.
A fall of seventy-four points in less than a week, such
as in the case of Riordon is a rare event, and fortunately,
there have been few such incidents during the progress of
liquidation on the Canadian exchanges, which has been fairly
steady. The Riordon Company's position at the present time
has not been definitely ascertained although the talk of new
financing and the closing of the Kipawa plant has led to the
supposition that the company is in difficulties, which will
mean considerable to common stockholders. It has been
stated that the new financing will be $4,000,000 8 per cent.
5-year notes, which will add another $320,000 to the already
heavy interest charges. The object of the note issue is to
replace the working capital, which had been depleted through
the large building and expansion program of the company
and in connection with the acquisition of large pine limits
and other pi'operties last year. But the change has ap-
parently taken place at a rather unfortunate time. As one
broker put it: "There was an untimeliness in the break in
paper which caught the papermakers of Canada between
seasons. They had laudably put a great deal of money into
perfecting and extending their mills, when they had lots
of money, and then ran into depression and are, unfortun-
ately, short of cash. The paper industry is fundamental in
Canada, and cannot but come out all right in the end."
As far as Steamships is concerned, the definite factors
are yet to be learned. That the management has been in
England to raise capital, appears to be the chief thorn in
the side of the market, while it is also understood that
recently acquired properties have entailed heavy liabilities,
which burden, the company desires to dispose of. It is re-
ported that a committee of shareholders has been formed to
go into matters relating to the recent acquisition of ad-
ditional properties; about which little is known by share-
holders, and if possible to pursue some line of action which
will help rehabilitate the market value of the company's
seccurities.
■Viewing the markets from other angles revealed the
same tendencies of weeks gone past. There was little if any
outside influence. Traders in Wall Street still lack initiative,
corresponding with the hesitant nature of general busi-
ness. Continued improvement in the reserve position of
the banks and the lower money rate has failed to inspire a
different feeling.
Trading for the week resulted in a turnover of listed
stocks on the Montreal exchange of 50,.518 shares, as com-
pared with 37.4.53 in the previous week, while in Toronto the
figure was 20,090, compared with 13,061. Bonds changed
hands to the extent of $1,302,450 in Montreal, as against
$1,120,248, while the turnover in Toronto was $871,600, com-
pared with $862,600 previously.
The board of directors of the St. Lawrence Four Mills,
Ltd., have declared the dividend on the common and pre-
ferred stock for the quarter ending April 30th. Only the
regular distributions were declared, and the usual bonus
was omitted for common stockholders. For some time, share-
holders had been receiving the equivalent of 10 per cent, on
the common stock, 6 per cent, on dividends, together bonus
payments. For the current quarter the shareholders will
receive only 1 ^i per cent, or at the rate of 6 per cent, per
annum.
Additional stock of the Bell Telephone Co. of Canada,
to the amount of $100,000 has been listed on the Toronto
Exchange. In July last the company made an allotment of
$300,000 new stock to trustees for purchase plans for em-
ployees.
William Paterson Stock Offering
Stewart, McNair. Reid and Co., Toronto, are offering
$200,000 8 per cent, cumulative participating preferred
shares of William Paterson, Ltd., Brantford, manufacturers
of biscuits and confectionery, at par with a bonus of 30 per
cent, in common stock.
The company, which has been in business for fifty-seven
years, has a capital as follows: 6 per cent. 20-year sinking-
fund bonds, $125,000; 8 per cent, cumulative redeemable
participating preferred shares, $200,000; common shares,
$200,000. It owns its own factory, and its products consist
of fancy and plain biscuits and confectionery.
According to the prospectus, the company is now doing
a business of more than $1,000,000 per year, all confined to
trade in Canada. The average earnings available for
dividends for the last three years were $43,710, which, after
paying bond interest, are equal to over twice the amount
required for the preferred dividends, and equal to 10 per
cent, on the common stock.
The last financial statement shows real estate, buildings,
plant, machinery and equipment at $459,397; inventories at
$143,186; accounts receivable and cash, $154,391. Against
these were: Bank loans, $229,872 and bonds, $125,000, leav-
ing total net assets of $403,118.
Directors of Eastern Theatres, Ltd., have declared a
dividend of 3U per cent, on Pantages, Toronto, this being
the arrears due on preferred for the last half of 1920. The
next dividend on preferred will be due on July 1, and it is
the view of the directors that this will be declared in the
usual course. In the first seven months of the operations of
this theatre, earnings were 15 per cent, on the common stock,
according to information available after the meeting last
week. There was a feeling that it would not be long' before
a dividend would be paid on common. Pantages common
now sells at about 16, par being $25. The preferred stock
outstanding is $700,000, and common $1,000,000.
A "Record of Investments" in pamphlet form has been
issued by H. B. Robinson and Co., Montreal.
UNLISTED SECURITIES
Qaotations furnished l
Abitibi Gen.Mtge.6's(40)
Alta. Pac. Grain.. ..com.
" " " ...-pref.
American Sales Bk..6's.
Belding, Paul pref
Brandram-Henderson pf.
Brantford Roofing
British Amer. Assurance
Burns, p. 1st Mtge. 6's.,
Can. Machinery.. - . com
6's
Canada Mortgage.
Can. Oil pref
Can. Salt 6's,
Can. Westinghouse
Can. Woollens pref.
Cockshutt Plow com.
" .pref. 7%
Bid
Ask
88
130
150
78
85
89
70
74.50
89.50
93.50
90
8
11
93
99
20
25
75
85
67.. 'iO
7'2
95
97
104
115
58
70
9
57
60
CoUpngwoodShipb'dg.y's
Crown Life Insurance...
Cuban Can. Sugar.. pref,
Davies, William 8'!
Dom. Iron&Steel5'sl939
Dom. Power com.
pref.
DunlopTire pref.
Eastern Theatres., .com.
Eastern Car 6's.
Goodyear Tire. ...7% rfd.
Quel. &Ont. In. (par $50)
nns. Limited pref.
irrisAbattoir 6's
ime Bank
perial Oil
KingEdwardHotel.com.
" ..7's.
Bid
Ask
90
65
20
.30
93
98
67
70.75
30
■ 33
88
92
86
92
11
13.50
85
47
52
90
58
67
89
95
98.50
101
lOj
110
P5
70
SO
85
Loew's, Buffalo. .. .com.
Toronto . .com.
Manufacturers Life
MasseyHarris
Mercantile Trust
Merchants Fire
Mexican Nor. Power. .5's
Morrow Screw 6's
Murray-Kay - pref.
National Life
Neilson. Wm 6's.
North American Pulp ...
North StarOil pref.
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Provincial Bank
People's Loan & Savings
Riordon. com. Inewstk.)
Bid
Ask
3.50
4.50
105
170
200
94
90
36
7
10.50
82
89
58
66
150
86
4.50
5
4.75
5
75
80
91
.95.. 50
1'22
"e'
80
8
Riordon. .pref. (new stk.)
R. Simpson pfd.
Southern Can. Pow.pref.
St. Lawrence Sugar. .6's.
Sterling Bank
Sterling Coal com.
Toronto Paper 6's.
Toronto Power. 5's ( 1924)
Trust* Guar
United Cigar Stores pref.
Western Assurance
WhalenPuIp pref.
April
THE MONETARY TIMES
WE OFFER
Alberta Municipal District
AND
Rural School Bonds
Maturing serially in 1 0 to 20 years.
To yield 7i% to 8%
W. Ross Alger & Company
INVESTMENT BANKERS
Royal Bank Chambers Bank of Toronto BIdg-
CALGARY EDMONTON
The Bond House of British Columbia
WE ARE :n THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
Oil Leases in Northern Alberta
JOHN S. LEITCH
60S Electric Railway Chambe
WINNIPEG. Manitoba
WE have 450 good businesses for sale in the central
portion of Alberta. Everything from a General
Store to a small Confectionery
If you v/ant a business in Alberta >uu want us.
WHVTE & CO., LIMITED
Btisineta Broktrt
111 Pantages Building - Edmonton, Alberta
New Issue $37,000.00
CITY OF TRAIL, B.C.
7% Bonds
Payable in New York. Toronto and Tr.iil.
Due March Isl. 1941. Legal Opinion: .Malonc. .Malone & Long
In consideration of 1 rail's excellent financial standing wc
unhesilalinKly recommend these bonds for investiiient.
Special ciicutar on request. Subject to prior sale.
PRICE: lOO AND INTEREST
Gillespie, Hart & Todd, Ltd.
C.'overrimcTil. Municipal, Corporation anJ Foreign Bonds
Main Office: 711 Fort St. - VICTORIA, B.C.
Branch . VANCOUVER, B.C.
■ ■■■^^■■■■■■■■■■■l
Is the
Banking Position
Improving?
\\ hat is the proportion
of current call and muni-
cipal loans to total de-
posits? What is the
bank's ratio of liquid
assets to liabilities? What
is the proportion of gold
to the net circulation of
paper money?
These and other ques-
tions affecting the bank-
ing position are answered
in the current issue of
Greenshields' Review.
Copy sent on request.
Greenshields & Co.
IN\ F.ST.VIENT BANKERS
17 St. John Street, Montreal
]■) King Street East
TO KG N TO
Central Chambers
OTTAWA
L:
■■■■■if
THE MONETARY TIMES
Volume 66
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
MOSiTUEAL-Wjcfe Kuiled Apr. aoili.
me- siipplle.! by lil-l!NKri 4 VO.. iiiciubors Montreal Stock
Asbestos Corp.
...pfd,
...pfd
Amcs-Holden
Atlantic Sugar
Bell Telephone
Brazilian T.L. & Power
Brompton Pulp & P- .
Canada Cement
...pfd.
Canadian Car ••.
■• pfd,
Can. Con
Can. Cottons
Canadian Gen. Elec...
Can. Steamship
* " pfd
• ■• Deb
■ ■■ ...Vot. Trust
Con. Mining J4 Smel...
Det Rys
Dom. Canners ■■
pfd
Dominion Bridge
Dom. Coal pfu-
Dom. Iron pfd.
Dominion Glass
** ...pfd.
Dom. Steel Corp
Sales Open High Low \ Close
Dominion Textile
Howard Smith
Illinois Tract
Kaministiquia
Lake of the Woods..
Laurentide
Lyall
Hacdonald Co .
Macltay PM.
Montreal Cotton ......
pfd.
Montreal Power
Tram
•■ ..Deb.
Telegraph...
National Breweries....
Ontario Steel
Ogilvie.
Ogilvie Flour Mills pfd.
Penmans ■■•
pfd.
Price Bros
Quebec Ry. L. H.&P..
Riordan Pulp&P
..pfd
Shawinigan W.»P ...
St. Maurice
Sher.-Wms ■
pfd.
St. Lawrence
Spanish River
" pfd.
Steel Co. of Canada...
■■ ■" "' pfd.
Tooke Bros
Toronto Ry
Wabasso
Wayafiamack P. & P. .
Winnipeg Ry
Woods .Mfg. Co.... pfd.
i;niik8
Commerce
Hamilton
Hochelaga
Merchants
Molsons
Montreal
Nationale
Nova Scotia
Royal
Standard
Union
Rniials
Asbestos Corp
Bell Telephone Co.
. Cement
371
68
117i
87i 88j
97}
82* 82i I 82*
' ' — ' 39
2S
344
ca*
103*
Can. Co
Can. Cottons
Can. Rubber
Cedars Rapids Mfg
City Mont.Dec. 6s. 1922
•• .May6's,1923
" Sept.6'S.I923
Dom. Can.W.Loan.l925
Victory Bonds. 1924
1934
1922,
1927
1937.
1923.
1933.
10000
1000
200U
lOflO
4000
3463
4226
.■i.S37
20934
377IS
2963:
18732
LillKl
211627
l.i489
17Si
209J
874
moSTUKXh— Continued-
Dom. Steel
Dom. Textile...
Lake of Woods.
.Mont. Tramwayl
Steel,
Price Bros ...
Quebec Ry.L.H.&P..
Riordon
Sherwin-Williams...
Steel of Can
Waba-.so Cotton
Wayagamack P. & P. ■
Winnipeg Elec
Sales Open High Low CI
TOROSTO— Week Ended Apr. aotli.
M>tiick.«
Atlantic Sugar.
Barcelona . ■
Bell Telephone
Brazilian Traction.
B C. Fish
Sales
Canada Steamship.
Con. Gas.
Coniagas
Dome.. . .
Dom
Duluth
Loco.
ron.
Open I High
■ pfd.
N.S. Car. ...
Nipissing
Ogilivie
Ont. Steel Pn
Pac. Burt ...
Porto Rico
■• pfd.
Quebec R.L.H. &P I
Riordon j
Rogers ;
pfd.
Salesbook
ptd.
Sawyer-Massey 1
Smelters
Spanish River
pfd.
Toronto Ry. .
rrethewey..
Tucketts
Twin City..,,
Winnipeg Ele
Commerce.
Dominion..
Hamilton..
Imperial , ,
Merchants
.Montreal , .
Nova Scoti:
Royal
Standard,.
Toronto...
Union
Loiiii an
Col. Inv...
Can. Land,
Can. Perm
Ont. L.
.Miu , ,
onto lien. T
on Trust.
Koiirts
. Bread. . , .
90
7
76
75i
15*
l.S
73
69
82i
7.S
42
38
■ io
ioo
120O
85
2000
893
i.sno
Sfi'
2.ioi:
6.S
10300
77
TOKOJiT«»— Co«<t»Med
War Loans
Dom. Can.W. Loan. 1925
1931
■ • ■■ 1937
Victory Loan 1922 . . . .
1923 ....
1927
1937 ....
1933 ....
1924 ..
1934 ....
Sales Open High Low | Close
5100
95i
9000
93
40300
96j
87OO0
98i
2770(1
97ii
n35«
979
738(H:
9915
26S65C
97^
6i80C
961
288751
94*
WIXXIPECl— Week ended
99 i
97j
96S
Victory Loan 1922...
•■ 1923...
'■ 1924..,
" 1927..
•• 1937..
• 1933..
" 1934 .
Wai Loan 192.S
•• 1931 ....
■• 1937 : . , ,
Sales Open
2030O
8300
2700
4200
18750
11150
303C0
1300
300
200
IBIII.
Low
98j i 988 i 98S
97p
SEW ¥«IItK— Week ended Apr.
llitll.
Slocks
Sales
Open
High
Low
Close
Canadian Pacific
31000
113i
114
108*
110-3
Nova Scotia S. SCoal.
100
■Mi
35?
353
■isi
Granby Consolidated
500
19
20*
19
20ft
Kond.^
Dom. of Can. 5% 1921
8000
993
99*
99
5*% 1921
5% 1926
2300(1
99*
993
99
21000
911
91
91
SJ% 1929
4OOO0
92*
9lJ
92
5% 1931
37000
894
88*
89+
Ontario Silver Mining.
4
LOKWOSi, Eng.— Week ended Apr. an«l.
<;ov'l. A Miui.
Alberta 4*%
B.C. 3%
Canada. 3*% 1930 50..
■■ ....3% Reg...
4% 1940-6(1
.... 4% 1920-25
Calgary 4*% deb
Edmonton 5% bds.23-53
.3% debs....
toba4 deb. 1928
Nfld.3*% bds
itreal 3% deb
44% Reg
4% cons.deb.
Nova Scotia 34%
Quebec 4*%
4% deb
3% bds. . . .
Toronto 4% deb. 1944-8
3J% 1929.,...
4% cons. •!i0-2
Victoria 4% I
Sale
Open High Low CI
3*% 1923
3t"o 1929-49..
4i% deb. -20-2
.54% cons-
"Peg4j% 1943-63.
4% cons
Kallwayti
Can. Nor. 4% deb
4%cons.deb.
■' Pac. 4% deb.
Can. Pac
■■ 4% deb.
•■ 4% pfd.
G.T.P. Br. 4% bd 1939.
G.T.P.4%deb
G.T.P. 4% 1955
Gr. Trunk... 4% guar.
Or. TrunkS% 1st. pfd..
Gr. Trunk 5% 2nd pfd .
Gr. Trunk 4% 3rd pfd.,
Gr. Trunk 4"o cons.
Gr. Tr. We5t..5'o drb..
Ont. c'i: Quebec 5% deb.
P. Gt.East.4i%deb.'42
Ind.. Fin., EIr.
Can. Car 6 bds
Can. West Lumber 5%
. Ele
Toronto Pow. 4*96 deb
Van, Pow. 4*% gr. deb
Can. Bk. of Commerce
Bank Montreal
April 22, 1!»21 THE MONETARY TIMES
NEW ISSUE
$2,000,000
Province or Alberta
Fifteen-Year 6% Gold Bonds
Dated 1st April, 1921 Due 1st April, 1936
Principal and half-yearly interest (1st April and October)
payable in Gold at Toronto, Montreal or Edmonton,
at the holder's option.
Denominations: $1,000, $500.
Bonds may be registered as to Principal.
Trustee Investment in the Provinces of Alberta, British
Columbia, Saskatchewan, Manitoba, Ontario ^nd Prince
Edv^ard Island.
Legal Opinion E. G. Long, Esq.
These Bonds are issued for Telephone Construction Pur-
poses. The principal and interest thereon are a direct
obligation of the Province of Alberta and are a charge upon •
the Consolidated Fund. The Bonds are free from Alberta
taxation, succession duties, charges and impositions, and
the moneys invested in these debentures and the interest are
exempt from municipal and school taxes in the Province.
Price: 97.59 and Interest
Yielding 6/4%
Orders may be telegraphed or telephoned at our expense
Dojwiion Securities (oRPORAnon
LI3VUTED.
Establ,5h,-d mi\ MONTREAL BRANCH
Canada Life Building
HEAD OFFICE: r ^f; STEELE - Manager
26 KING STREET EAST LONDON. ENG.. BRANCH
TORONTO No. 6. Austin Fr.ars
A. L. FuIIerlon - Manager
E. R. Wood
President
G. A. Morrow V,
:e-Pre»ident
J. W. Mitchell Vi
ce-President
W. S. Hodgens -
Secretary
]. A. Fraaer - -
Treasurer
T. H. Andison As
s't Secretary
A. F. White As.
t Treasurer
April 19th. 1Q2I
THE MONETARY TIMES
Volume 6C
CORPORATION FINANCE
British Columbia Telephone Company is Seekinj; Increased
Rates — Grand Trunk Defiict Reduced — Canadian Cottons
Dividends Exempt from Income Tax
(Jrand Trunk Railway. — While the company had a deficit
in January, there was a surplus over expenditure in Feb-
ruary which offset to considerable degree the poor showing
of the first month. The following figures show the results: —
Month of February — 1921. Increase.
Gross receipts £1,177,900 £220,200
Expenses 1,097,800 37,600
Net f 80,100 £182,600
Aggregate for two months —
Gross receipts £2,493,500 £497,300
Expenses 2,525,000 259,200
Net Dr. £ 31,500 *£238,100
*Reduction in deficit by this amount.
Canadian Cottons, Ltd. — Shareholders have been advised
that the dividends paid during the current year of 1920 are
exempt from income tax. In making the announcement the
company says: "This decision affects your income tax return
which is now due. In making up your return you should
enter as revenue such dividends of Canadian Cottons, Ltd.,
as you may have received during the calendar year 1920, but
you should not extend the amount into the outer column.
On the opposite page you should claim as a deduction the
dividends in question, stating that such dividends have been
paid out of the unimpaired surplus on hand on the 31st
March, 1916, but do not extend the claim."
British Columbia Telephone Company. — The company is
seeking for increased rates sufficient to give 10 per cent, on
investment. .'Application for this commenced before the Do-
minion Board of Railway Commissioners at Vancouver last
week. According to evidence submitted by the company,
last year's profit averaged 3.46 per cent, of plant value, which
has been placed by experts at $6,000,000. It was pointed out
that on such a showing the company would not be able to
borrow money which was needed for development.
G. H. Halse, general manager, stated that the company
owed the bank $150,000. .All its fund for depreciation reserve
was put into the plant extension last year, and the company
had not a dollar with which to can-y out replacement or
extension of plant. He denied that there had been any ex-
ploitation of the telephone company. They had invested their
surplus in plant instead of borrowing at big interest for this
purpose. Shareholders had got from 6 to 8 per cent, divi-
dends, which, he thought, was reasonable. Greater revenues
for the replacement of the reserve fund was urged.
Canada Steamship Lines, Ltd. — Directors were in session
this w-eek discussing the position of the company. The chief
proposal under consideration was the additional financing
which the company was arranging for in London, England.
During the visit of J. W. Norcross, the president, and F. S.
Isard, general comptroller, an offer was received from Lon-
don bankers for additional financing to an amount of £1,000,-
000 sterling. It is this proposal that is now being considered
by the board of directors. At the moment, it is not known if
this additional financing will be arranged at the present time,
or whether temporary arrangements will be made in Canada
to look after any financing which the company may have for
the next few months
As regards the sudden and drastic decline in Steamships
preferred, intei-ests close to the company maintain that there
is nothing in the affairs of the company or in the general
business outlook which could in any way explain the decline
that has occurred. It is claimed that this is a market de-
velopment entirely, and has no relation to the company's
position and its ability to earn the preferred dividend. On
the other hand, it is steadfastly maintained by interests in
the company that adr.'^.nce bookings would indicate a very
good year for the company.
NOVA SCOTIA'S REVENUE AND EXPENDITURE
Accounts for the Year 1920 Show Small Deficit— Both
Revenue and Expenditure Have Increased
PUBLIC accounts of Nova Scotia for the year ended
September 30, 1920, brought down in the legislature
on April 1, show a deficit of $92,708. In the preceding year
there w&s a surplus of $29,507. The expenditure for 1920
was $3,893,724, an increase of $658,830 over 1919, and
revenue was $3,801,016, an increase of $657,831.
Receipts and expenditures by services were as follows: —
Expenditures. Receipts.
Agriculture $ 118,162 $ 28,040
Attorney-general 95,332 85,969
Education 543,848 106,645
Provincial secretary 106,154 788,611
Provincial treasurer 813,047 1,256,617
Public works and mines . . . 184,427 703,836
Public charities 767,402 504,62.4
Public service 294,096 3,155
Highways 971,252 324,515
Totc.ls $3,893,720 $3,801,016
The balance sheet of the province shows assets and
liabilities as follows: —
Liabilities
Capital (debentures and inscribed stock) $17,202,646
Current liabilities 572,147
Special funds 36,535
Indirect liabilities 130,541
Total $17,941,871
Assets
Capital —
Dominion debt account $ 1,055,929
Railway investments 4,447,000
Sinking fund investments 930,127
Current —
C"..3h and bank balances 48,514
Accounts receivable 273,427
Cash advances 349,460
Inventory 10,737
Deferred as-ets 106 520
Balance 10,720,514
Total $17,941,871
OSHAWA BOARD OF TRADE
At the annur.J meeting of the Oshawa, Ont., Board of
Trade, held on April 12, the following officers were elected:
President, F. J. Bailes; first vice-president, E. A. Lovett;
second vice-president, W. R. Gheikie; secretary, J. A. Mc-
Gibbon; treasurer, F. L. Henry. The e.xecutive was also
re-elected. Sixty-two applications for membership were re-
ceived.
Horace L. Brittain addressed the meeting on the need
for more interest on the part of the average ratepayers in
municipal afffirs; some of the functions of a community, in
which the beard of trade could co-operate; the protection of
life and property, the advancement of education, better
highways, social welfare, recreation, public health and sani-
tation. The speaker thought that the best method of en-
lightening the rf-tepayers on these matters was through
the medium of publicity publication of reports, etc. The
interests of the community were the interests of the board
of trade, he said. There must be publicity, and it must be
done in £• manner that people can understand. He had seen
reports from auditors and treasurers that a chartered ac-
countant could not unravel.
April 22, 1921
THE MONETARY TIMES
43
QUEBEC'S REVENUE AND EXPENDITURES
Details for Last Financial Year — Cash on Hand Has In-
creased—Net Funded Debt is $38,531,751
QUEBEC province had a surplus of nearly one million
dollars during the fiscal year ended June 30, 1920, ac-
cording- to a statement made by Hon. W. T. Mitchell, treas-
urer, in Januaiy. The accounts have now been published in
detail and showth? following chief items of revenue: Balance
on hand, $879,233; Dominion of Canada, $2,028,162; lands
and fci'ests, $3,033,587; colonization, mines and fisheries,
$681,852; justice, $619,995; licenses, $1,554,079; taxes on cor-
porations, $1,581,759; succession duties, $1,786,930; tax on
transfer of shares, bonds, etc., $132,583; Motor Vehicle Act,
$1,180,725; lunatic asylums, $324,338; casual revenue, $309,-
873; trust funds. $445,983; temporary loans, $5,000,000; loan
under 10 Geo. V., cap. 3, $6,524,700. The total receipts were
$27,409,004. The principal expenditures were: Public debt,
$2,029,721; legislation, $562,986; civil government, $809,097;
justice, $1,360,978; public instruction, $1,673,561; lunatic
asylums, $1,017,9-36; reformatory schools, $226,500; health,
$119,694; public works and labor, $807,057; agriculture,
$887,400; roads, $1,336,366; lands and forests, $566,000:
colonization, mines and fisheries, $895,646; charities, $73,-
745; revenue charges, $618,665; miscellaneous services, $530,-
451; Good Roads Act, $3,413,108; trust funds, $408,904; re-
payment of temporary loan, $1,000,000; redemption of debt,
$6,000,000. The balance forward is $1,783,842.
The province's funded debt on .June 30 last was $38,-
531,751. Temporary loans, deposits, etc., totalled $5,778,661;
this included a loan of $5,000,000 from the Bank of Montreal
at 6 per cent. The total of bond issues outstanding are $44,-
153,713, but of these bonds $3,445,599 have been redeemed
and $2,176,362 are held in sinking funds. The first one to
mature vAU be the loan of March, 1920, due March 1, 1925.
canadian
^pacific/
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Canadian
Information
>\\^^^^mW
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cific Railway,
through its Bureau
of Canadian Infor-
mation, will furnish
you with the latest reliable information on
every phase of industrial and agricultural
development in Canada. In the Reference Li-
braries maintained at Chicago, New York and
Montreal are complete data on natural resources,
climate, labor, transportation, business openings,
etc., in Canada. Additional data is constantly
being added.
No charge or obligation attaches to this service.
Business organizations are invited to make use
of it.
Canadian Pacific Railway
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165 E. Ontario St.
Chicago
335 Windsor Station
Montreal
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NEW MERCHANTS BANK DIRECTORS
At the meeting of directors of the Merchants Bank, held
Sth inst., three new directors were elected — Messrs. John
Baillie, Norman J. Dawes and Ross H. McMaster — r.11 of
Montreal, the board of the bank thus being brought back to
full strength. Ross H. McMaster is vice-president and local
manager of the Steel Co. of Canada; Norman J. Dawes is
president of National Breweries, Ltd., and a director of the
Windsor Hotel Co., Dominion Bridge, Wayagamack Pulp and
Paper and others; John Baillie is managing director of the
Dominion Oil Cloth Co., president Canada Linseed Oil Mills
and a director of Dominion Textile and Penmans'.
Condensed Advertisements
" Positions Wanted," 3c per word : all other condensed advertisements
5c. per word. Minimum charge for any condensed advertisement. 65c
per insertion. All condensed advertisements must conform to usual
style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance : 50 per cent, extra if charged.
WANTED. — A young man as Assistant Inspector for
the Province of Nova Scotia. One with experience in in-
specting and schedule rating of fire risks preferred. Apply
stating qualifications and salary asked, to Editor. Box 407,
Monetary Times, Toronto.
SECRETARY-TREASURER, age 30, of large company
in British Columbia, desires connection in similar capacity
with well-established business anywhere in Canada or the
United States. First-class accountant, with excellent creden-
tials. The more responsibility to be assumed, the better.
Prepared to proceed at once for interview for any legitimate
proposition. Apply by wire or letter to H. Anscomb, 1921
Government Street, Victoria, B.C.
528
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THE MONETARY TIMES
Volume 66
SHORT AND LONG TERM RURAL CREDITS
(Continued from page IJ,)
can only hold on). At the ilr.io cf the original investment
the time of repayment was agreed to "in the fall," not the
following June, thus the Banker's ratio of reserve to deposits
were inadvertently upset — which is disappointing to say the
least. The fact, however, that the farmer has the wheat to
sell is a favorable factor in the situation. On the other hand,
when crops are a total failure, due to drought, hail, frost,
insects, etc., or due to soil-drifting, the farmer borrower is
unable to pay and the situation is more serious, his "ability
to pay" has received a severe set-back, and the bank's funds
have become "tied-up." Such a situation usually calls for
real estate and chattel mortgage security, which should be
given promptly and willingly as the money involved is de-
positor's money handled in trust by the bank, upon the loan
being thus secured the farmer is carried over for another
year. It is apparent that several crop failures in succession
will tend to put a grain grower out of business. Such loans
become long-term loans and are forced on the banks. They
are usually called funds "tied-up" or "frozen," thus other
things besides crops are sometimes frozen in western Canada.
Bank Charters
The chartered banks are subject entirely to federal leg-
islation for their business rights. Their charters are
renewed by parliament every ten years. At this period the
Bank Act is carefully reviewed and any necessary changes
are embodied in the act. Economic conditions change in our
country from time to time and the act is periodically re-
vised to meet these conditions. The next revision is due in
July, 1923, and as that time draws near it is expected that
considerable discussion will appear in the press, by different
economic organizations and finE.lly by parliament itself.
In considering any proposed changes in the banking laws,
parliament consider the interest of the nation as a whole.
To pass legislation in the interests of any particular class
E't the expense of another is to invite national disaster. In
such legislation the interests of the farmer, the merchant,
the manufacturer, the lumber interests, the fishing industry
and all intere.sts engaged directly or indirectly in develop-
ing the natural resources of the country are considered. All
are interdependent upon each other and each must be reas-
onably supported within their legitimate requirements. After
more th&n fifty years of banking experience in Canada the
present Bank Act is said to function satisfactorily. All the
legislation in the world will not guarantee the successful
administration of the finances of the country. The respon-
sibility for success rests upon the sane, careful management
by the executive officers of the banks. They are experienced
men of the highest possible standing, men who have won
their positions through hard work and application to the
study of banking, trade and commerce, and they are well
posted in Canadian conditions as well as being posted on
the economic situation of the world, and the public is safe
in leaving- the banking business of the country in their
capable keeping.
RECENT FIRES
Loss for Week Totals Sl,275,.50O, Compared with $167,500
Last Week — Church of the Nativity, Montreal,
is Heaviest Loss
Chin, Alta.— April 12— General store of A. N. Sprinkle.
Loss, $3,000, partly insured.
Gananoque, Ont. — April 15 — D. J. Managhan's barn.
April 18 — Plant of Eastern Ontario Milk Products Co.
Loss, $5,000.
Harris, Sask. — April 13 — Campbell and Vance garage.
Hatton. Sask.— Aprill 6— Business section. Loss, $50,000,
covered by insurance.
Kincardine, Ont.— April 14— Home of Frank Stanley,
sixth concession of Bruce. Cause, incendiarism. Loss, $2,000.
Montreal, Que.— April 19— The Church of the Nativity,
on the corner of St. Germain and Ontario Streets East. Loss,
$800,000; insurance, $150,000. ,
Ochre River, Man. — April 16— Manitoba Government
grain elevator. Loss, $18,000, partly insured.
St. Stephens, N.B.— April 20— The roundhouse of the
Maine Central Railway at Calais. Loss, $200,000.
Sidney, B.C. — April 14— Factory of Sidney Roofing and
Paper Co. Loss, $50,000.
Swift Current, Sask. — April 15 — Kimball Lumber Co.'s
plant on Cheadle Street. Loss, $2,000.
Toronto, Ont — April 20 — Premises of the Ontario Case
and Store Fixtures Co. on Queen Street East. Loss, $2,500.
Vancouver. B.C. — April 13— Factory building of Twen-
tieth Century Ready-Built House, Ltd. Loss, $40,000. Plant
of the Mills Cut Homes and Lumber Co., Ltd., Thirteenth
Avenue and Arbutus Street. Loss, $40,000.
Vonda. Sask — April 8 — Vonda Separate School building.
Loss, $12,000, partly insured.
Winnipeg, Man. — April 13 — Curry building stores. Total
loss, $50,000. A. McDougall, 241 Portage Avenue. Loss, $30,-
000. Kingston Smith Arms Co., 243 Portage Avenue. Loss,
$10,000. Parker and Sons. Loss, $10,000.
$5,000,000.00 PROVINCE OF ONTARIO 15-YEAR
6'r BONDS
The Government of the Province of Ontario will receive
alternative tenders up to 12 o'clock noon, on Tuesday, April
26th, 1921, for the following:
1st. $5,000,000 Province of Ontario 6% Bonds, dated
2nd May, 1921, due 2nd May, 1936, bearing interest at the
rate of 6% per annum, payable half-yearly on the 2nd days
of May and November, principal and interest payable in
gold coin of lawful money of Canada, at the office of the
Treasurer of Ontario, Toronto, or at the Bank of Montreal,
Montreal, Canada, at the holder's option, or
2nd. $5,000,000 Province of Ontario 6'7r six months
Treasury Bills, with interest, dated 2nd May, 1921, payable
six months therefrom on the 2nd day of November, 1921,
principal and interest payfjble at the office of the Treasurer
of Ontario, Toronto, or at the Bank of Montreal, Montreal,
Canada, at holder's option.
Bonds to be in the denomination of $1,000 each, with
coupons attached, and may be registered as to principal only.
If Treasury Bills are issued, they will be in the denomination
of $1,000 or larger. Payment for Bonds or Treasury Bills
and issue thereof to be made at the office of the Treasurer
of Ontario, Parliament Buildings, Toronto, on or before the
13th May, 1921, less the amount of the deposit. If Bonds
are sold interim debentures will be supplied on payment of
money, to be exchanged for definitive bonds on completion
by the engravers.
Sealed tenders, endorsed tenders for Province of Ontario
debentures, should be addressed to the Honorable P. Smith,
Treasurer of Ontario, Parliament Buildings, Toronto.
Tenders must be for the whole aiViount offered and must
be accompanied by marked cheque for $50,000, to be applied
in the case of the successful tenderer as part payment for
Bonds or Treasury Bills. The highest or any tender not
necessarily accepted.
P. SMITH,
Treasurer of Ontario.
Toronto, 22nd April, 1921. 533
FfPl.lSHKD EVERV Fkiday
The Monetary Times
Printing Company
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Editor
Should Cost of Imperial Navy Be Shared In?
A Comparison of the Present Financial Burden in Great Britain and Canada — Our
Transcontinental Railways Are a Contribution Towards Imperial Defence — Britain's
Position Necessitates a Navy, While That of Canada Requires Railways
By W. G. GATES, B.A.
CANADA has gone to the limit in the matter of national
expenditure. Indeed, it would seem that she has
sliouldered more than she can conveniently carry. Supremely
confident of the future, she has assumed responsibility after
responsibility until now it is only beginninjiC to be realized
what she is up against. Unless our legislators at once put
the breaks on expenditure, Canada, insofar as the average
person is concerned, will cease to be the land of opportunity
that it has rightly been considered.
The time has arrived when Canada must consider new
commitments strictly from the standpoint of her ability to
pay. There are no regrets for her war debt, large though it
is, this having been incurred during one of those momentous
struggles that come during the lifetime of nations. It was,
indeed, more than that; it was a crisis in the history of
civilization itself, when to have remained a mere spectator
would have incurred lasting disgrace. But the war is only
partially responsible for the burden that this country is
carrying.
How far Canada has gone in assuming commitments is
not realized by most Canadians, let alone by those of other
countries. It is time that the facts were laid bare. The pre-
sent rate of per capita expenditure, which is over twice that
per capita in the United States, which has nearly twenty
times Canada's national wealth, cannot be maintained with-
out incurring the risk of a financial crisis. If it is escaped,
the burden of taxation will, at least, be so heavy as seriously
to discourage immigration, on which rests the chief hope
for the lightening of the load.
Proposed Naval Expenditure
This subject is the more important just now because of
the evident attempt that is being made in some quarters to
stampede Canada into making a direct contribution for the
maintenance of the British Navy. A cable reports Mr.
Lloyd George as having recently said in the British House of
Commons — "It was too much to ask of these small islands
that they undertake the burden of the defence of a gigantic
empire in every sea, and that at the forthcoming confer-
ence of Prime Ministers of the Dominions in London the
whole problem of imperial defence must be considered." At
Vancouver recently Mr. Gordon C. Jackson, secretary of the
Dominion Navy League, is reported to have said that Eng-
land was paying $17.50 a head for the maintenance of the
navy, and that it was time that Canada stepped into the
breach and assumed her share of the burden. Both of these
statements quite ignor what Canada has done, because in
considering the matter of imperial defence, they fail to take
into account anything but the British Xavy.
It will readily bo admitted that the British Navy is
essential to the continued existence of the British Empire,
but it would be quite incorrect to say, that, from the stand-
point of offensive and defensive strength, the navy is the
only part of the Empire's oi-ganization of value. There are
other factors of hardly less importance, and this was strik-
ingly demonstrated during the war. One of these is rail
transportation, which acting as a connection link between
distant portions of the Empire, is quite as important as
were the military railways behind the western front. In
building three transcontinental lines of railway Canada has
done quite as valuable work for the British Empire as any
other part of it. She has done it because her geogi-aphical
position, acting as a link between Asia and Europe, has
made possible the converting of her great railway systems,
built at great cost for industrial purposes, into strategic
railways of the first importance.
The Transcontinental Railways
Thirty years ago, when Canada had but one transcon-
tinental, the C.P.R., Sir Charles Tupper pointed out its im-
poi-tance to Britain and the Empire in the follow'ing: —
"We have therefore not only provided the means of inter-
communication, the means of carrying on our trade and busi-
ness, but have also established a great Imperial Highway
which England might to-morrow find almost essential for
the maintenance of her power in the East. Not only has
Canada furnished a highway across the continent, but it has
brought Yokohama thi-ee weeks nearer to London than it is
by the Suez Canal. I give that as an illustration that there
are other means, which, in my judgment, may contribute
much more to the increased strength and maintenance of the
Empire than any contribution that could be levied on any
of the colonies."
What would Sir Charles say of three transcontinentals,
were he living to-day and had before him the evidence of
their value as disclosed "by the great war?
It is impossible to estimate the value of the three trans-
continentals to Great Britain and the Allies during the great
struggle with Germany. When 50,000 Chinese coolies were
wanted to work behind the lines in France, how were they
transported? By vessels across the Pacific to Vancouver,
thence by rail to Montreal, and across the Atlantic. This
great body of laborers who rendered service, of inestimable
value could not have made the trip, had it not been for the
short cut by rail across this country. The Allies could not
have supplied the shipping to carry them via the long sea
route, but Canada's railways solved the problem and thus
made possible the releasing of 50,000 Europeans for active
military duties.
Thousands of other troops from the Orient also made
their w-ay to Britain and France over these highways of steel.
British Columbia, Alberta and Saskatchewan supplied 135,000
men for the Canadian Expeditionary Force, but these could
not have been moved had it not been for Canada's three
THE MONETARY TIMES
Volume 66
transcontinontals. To have sent them to Europe via the
Pacific and the Suez would have been impossible. Think of
the hn-fce numbers of American troops handled by the Cana-
dian railways. By means of the C.P.R. over $2.50,000,000
in gold was transferred from Russia to the vaults of the De-
partment of Finance, at Ottawa, to enable the making of
settlements for the British Government.
Carrying of Food and Supplies
Food was a vital factor durinj;: this great strugg'le and
Canada's three transcontinentals made possible the laying
down in Britain and in the Allied countries generaly, the
huge wheat crops from the prairies, without which, it is no
exaggeration to say, the war could hardly have been won.
This continuous stream of wheat flowing across the Atlantic
prevented the dread spectre of starvation from stalking
through Britain, France and Italy as it stalked through
Germany and Austria-Hungary. Not only that, but very
large quantities of wheat from the United States were moved
over these lines. So one might go on to speak of the mil-
lions of tons of munitions moved; of the millions of feet of
spruce for the manufacture of airplanes that were hurried
across Canada from the Queen Charlotte Islands, and on
which the airplane factories in England depended very large-
ly for supplies. All this was made possible because Canada
had, through the expenditure of some hundreds of millions,
to say nothing of equal sums guaranteed, built three trans-
continentals. The congestion on the railroads of the United
States was bad enough during the war; but it would have
been infinitely worse had it not been for the extensive Cana-
dian lines that eased the pressure.
Railways Built for Industry
It is true that the Canadian Pacific, the Canadian
Northeni, and the Grand Trunk Pacific, with the National
Transcontinental, were built not primarily for the purpose of
imperial defence, but to promote the industrial development
of the Dominion. But the war demonstrated that while in
building these railways Canadians were thinking only of
internal development, they were really building strategic
highways of the utmost military importance. They built
better than they knew— they built for the British Empire
and civilization. It is now recognized that for ordinary pur-
poses Canada does not yet require three transcontinentals;
indeed, some say that the traffic offering could really be
handled by one. But when the areat war was at its heio-ht
the three, operating at the maximum, were not too many.
Unwittingly Canada built these roads to help win the war.
For her own purposes she will not need the three of them
for some years. At present the tearing up of a considerable
rail mileage is seriously advocated. Only one of these, the
C.P.R. is paying, or will pay, for some years.
It cost Canada a huge sum to build her three trans-
continentals. How much, comparatively, few Canadians
really know, to say nothing of those living in other portions
of the BritisJi Empire. Official records, show, that from
Confederation to March 31st, 1920, the direct expenditure,
by the Dominion Government, on railways, was $951,000,000
Add to that the deficit on the roads operated by the govera-
ment last year, including all fixed charges and capital ex-
penditure for the current year and the total exnenditure is
brought up to approximately $1,100,000,000. This does not
include the cost of the C.P.R. but only such cash grants as
were made to it. Add to the foregoing 44,000,000 acres of
the best land in the West, than which there is no better in
the world, and for which another half billion dollars should
be allowed, and the total is brought up to $1,600,000,000.
Cost Nearly Three Billions
Large as this sum is, it is only a portion of the total
cost. A reliable authority places the total capital liability
on the roads that either have been, or are about to be taken
over by the government, at over $2.27.5.000.000, and the
figures have not been disputed. Add to this the value of
the land grants, $600,000,000, and the total is thus $2,875,-
000,000. And the end is not in sight. Nor will this year's
vote of $168,000,000 stop the heavy drain, for if total" fixed
charges are included, it is difficult to see how the deficit can
be brought below $50,000,000 for several years.
Canada's direct war expenditure is costing Canadians
fully $14 per capita per annum, while the deficits on her rail-
ways, which so materially helped to shorten the war, are
costing her not less than $10 per capita per annum. Is this
no contribution to imperial defence? Britain, by putting
vessels out of commission, and by curtailing her building-
program, may materially reduce her naval exnenditure; but
Canada cannot cut her railway deficits so easily, for having
guaranteed the bonds for hundreds of millions, she is liable
for the resulting principal and interest.
No complaint is made over the burden resulting from
the cost of the war, or of the other expenditures that have
been of such benefit to the Empire; but when it is seriously
contended that Canada is not doing enough and should take
on more, it is only natural that her ability to do so should be
contracted with that of the Mother Country.
Great Britain and Canada Compared
1914 Britain's foreign investments were valued at ap-
proximately $20,000,000,000; during the war period she dis-
posed of $5,000,000,000 of these, but it is estimated that there
remains $15,000,000,000, which makes probably still the
world's most important national money lender. In fact her
investments abroad are equal to more than Canada's total
wealth. The income from these investments may be put
roughly at $750,000,000, a year. And to this another $1,-
000,000.000 from the returns on her shipping, also another
$250,000,000 in the form of insurance and returns from other
sources, and her annual revenue from the outside world will
not be less than $2,000,000,000. And it will undoubtedly in-
crease T'apidly, for Britain is fast getting back her trade.
Moreover her area is small, and her industries are so highly
developed, that but a small proportion of her newly acquired
wealth is i-equired each year to finance home operations.
Compare this with Canada's position. Instead of being a
creditor, she is a heavy debtor countrv, and to a far greater
extent than the average person realizes. Indeed the best
estimates of foreign investments in this country place their
total at not far from $4,000,000,000, of which over $3,000,-
000.000 is in the form of bonds and other securities. This
borrowed money is costing Canada over $200,000,000 a year,
while another $80,000,000 is going out in the form of other
charges, bringing the total annual payment on this account
up to over $280,000,000. Heavy as this is, the burden is
gi-owing. Last year her borrowings in the United States
amounted to $230,000,000 and it would not be surprising
were they $200,000,000 this year. Nor is there much prospect
of a slackening in the demand for outside money. Capital,
and much of it, Canada must have, and so the borrowing
must go on for some years.
External Debt
Some make much of Great Britain's debt to the United
States, and they dwell upon the heavy resulting drain. True
the debt is heavy, approximately $4,200,000,000; but in com-
parison with what Canada owes to other countries is any-
thing but heavy. As has already been pointed out, the value
of foreign investments in Canada is placed at $4,000,000,000,
of which fully $3,000,000,000 is in the form of bonds and
other securities, over $1,200,000,000 of the latter being held
by American investors. But while Britain owes the United
States over four billion dollars, other nations ovfe her nearly
twice as much. On the other hand the balance due Canada
by other countries probably does not exceed $300,000,000.
Of course not all of the debts due to Britain will be paid,
but if fifty per cent, of them were wiped off, there would still
be almost enough to square the United States. Besides, any-
thing she may collect from Germany will be to the good.
On her debt to the United States, Britain pays about
$210,000,000 a year. On her debt to outsiders Canada pays
almost, if not quite, as much, about one-half of it goin<r to
the great Republic. Besides, in the matter of interest rates
Ai:r;i 29, 1921
THE MONETARY TIMES
the British Government is getting off a great deal more
easily than either the Dominion Government or Canadians
generally are. The former pays five per cent., whei-eas
Canada, it is understood, is now paying as much as "\2-
Moreover Britain's borrovkfing in the United States is at an
end ; Canada's must continue. Last year Canada borrowed
in the United States $80,000,000 for railways. Britain, last
year, paid off $250,000,000 of the money she borrowed from
the United States during the war. The" $168,000,000 in rail-
way loans that parliament is asked to authorize this year,
will have to be borrowed in the Republic.
Her Capita E.xpenditure
When it comes to the subject of annual expenditure,
Britain, with five times the wealth of Canada, should be
able to pay possibly five times the per capita taxation. This
with certain qualifications, would be considered a reason-
able assumption. But what are the facts? Great Britain's
expenditure this year is approximately $100 per capita,
whereas Canada's is approximately $81, the latter figure
including federal and provincial expenditure which should
.ilways be lumped when comparing it with Britain's. The
.Mother Countrj' spends this amount on an imperial adminis-
tiation that covcr.s one-quarter of the earth's surface and
includes 450,000,000 people; Canada's expenditure is for but
9,000.000 people. So possibly, in so far as expenditure is
I oncerned. Great Britain is not the only weary Titan in the
world.
Touching on the subject of revenue, that of Great
r.ritain for the fiscal year just closed was approximately
s 7,1 30,000,000; Canada's was about $4.50,000,000. In other
words, the per capita revenue of the former was about $158;
Canada's was approximately $50. During the present year
Britain will materially reduce her taxation; but Canada must
materially increase hers, so as to raise at least another
$100,000,000. Moreover Britain had a surplus of over $1,-
1 00,000,000 last year. But some one may say, "is not the
income tax much heavier in Britain than it is in this coun-
try?" Quite true, and it is probable that some other taxes
ire. But this is explained not by the fact that the load in
ISritain is heavier per capita in proportion to the per capita
wealth, but rather to the fact that Britain, having stopped
borrowing, is paying a considerable portion of her debt out
of current revenue. Canada so far from doing this, is still
borrowing, for in guaranteeing the bonds on her railways,
a portion of which money will go to pay deficits, she is
really borrowing herself.
Navy and Hallways
There is no desire to minimize the cost to the people of
(ireat Britain of maintaining her navy. But at $400,000,000
for the year, this is equal to no more than a charge of 2^2 per
cent, on the value of her foreign trade, all of which is sea-
borne. Canada's trade last year was valued at about $2,-
500,000,000, of which $1.500!000,000 was with the United
States and could have been done entirely by rail, so that even
from the standpoint of defence of her overseas commerce, it is
obviously impossible to expect her to do more than support
whatever naval establishment she considers necessary in her
home waters. The Mother Country is so situated that she
probably needs a great navy more than anything else, Canada
possibly needs railways more than anything else. And the
Empire needs Canada's rail<vays, but Canada is not asking
the Empire to share any portion of their cost.
While the cost of the navy to the British taxpayer last
year may have been $17.50 per capita last year, the naval
estimates for this year show that the per capita cost will
not be $10 this year. This may appear to be large, but it is
no more than the public of Canada will have to pay in order
to make good the total deficits on the national railways.
Those who make light of what Canada has done and
i> doing for the Empire, shut their eyes, to the responsibili-
ties which she, a country of but 9,000,000, has assumed in
tveloping a veritable empire within her own boundaries.
I anada may be a potentially wealthy country, but she is
anything but wealthy in the sense that Britain is, that is
in liquid assets. To meet her railway deficits this year she
must borrow in New York, and in so doing will probably
add $9,000,000 a year to her annual interest payment. If
Canada did contribute a sum worth while to the maintenance
of the British Navy she would first have to borrow it, which
is out of the question. Canada has never failed to do her
share in the past, but the time has come when she must for
the present say "enough".
SEEDING NOW GENERAL IN ALBERTA
Farmers Consider Season Much Better than in 1920 — May
be a Slight Decrease in Acreage
(Staff Correspondence.)
Calgai-y, Alta., April 2S, 1921.
SEEDING thi-oughout Alberta is now general with good
conditions prevailing. There is plenty of moisture to
start germination and the majority of farmers consider the
season much more favorable than 1920. Indications point
to the fact that there will be a slight decrease in acreage,
more particularly in Southern Albei-ta; reports from this
portion of the province indicate a 25 per cent, decrease.
The present estimate for the south country is one million
seven hundred thousand acres as against two million last
year.
Conditions for the crop are considered the best for
many years. Wheat seeding is fifteen to forty per cent,
finished. Labor conditions indicate that men can be ob-
tained at any where from forty to sixty dollars per month
as compared to seventy-five to a hundred dollars one year
ago. In Lethbridge an optimistic feeling was found to pre-
vail, the pi'esent spring outlook being considered most en-
couraging. Travellers are booking better orders the last
few weeks, but business on the whole is, however, quiet.
Some slight improvement may be said to exist regarding
collections. Very little building is contemplated in Leth-
bridge this season, but it is expected that actual work on
the Lethbridge Northern Irrigation project will be pushed
vigorously this summer. The provincial government has
guaranteed the bonds of this important project and will
shortly be calling for tenders.
Edmund Taylor, of Lougheed and Taylor, Calgary, in
discussing present conditions with The Monetary Times, said
while not being over-optimistic of general conditions, he was
inclined to take an encouraging view of things. He stated
that inquiries from the east indicated that there was no
lack of confidence in the development of the west, that, he
thought, was a healthy sign. Another satisfactory indica-
tion, he said, was to be found in the repayment of loans to
Canada by the Old Country on a monthly instalment plan.
This undoubtedly would have a tendency to ease matters
with the banks. "As a result of the publicity given to gov-
ernment expenditures during the war, the public have be-
come so accustomed to discussing financial matters in terms
of millions, and in some cases billions, that they are in-
clined to be some what careless and fail to appreciate the
true significance of the enormous sums involved in the
undertakings of the Dominion and provincial governments,
banks, public utility, companies and industrial concerns."
The building program in Calgary will not be large this
season as cost of materials and labor are too high here, as
elsewhere for any great extensions to be undertaken. The
city of Calgary are paring down in every possible way on
their estimates, but even by so doing their tax rate has
been struck at 49 mills.
Livestock in Alberta has come through the winter in
excellent shape.
The second annual convention of the Purchasing Agents'
Association of Canada will be held in Toronto on May 14.
Matters vital to every industrial company and purchasing
agent will be discussed.
THE 'MONETARY TIMES
Volume HG
THE WEEK IN PARLIAMENT
Railway Problem Still Occupied Foreground at Ottawa —
Shaughnessy Proposal Chief Topic of Discussion
(Special to The Moin-laiy Times.)
Ottawa, April 28, 1921.
Thursday. April 21. 1921
In House of Commons: — (a) Banking and Commerce
Committee reported to House that act to incorporate North
American Trust Co. of Canada should have title changed to
"Act to Incorporate Metropolitan Trust Co. of Canada";
(b) Debate on Canadian Representation in United States and
passing of estimate of $60,000 for .Minister Plenipotentiary;
(c) Passing of Estimates for External Affairs Departments,
High Commissioner's oflice in London, Paris Agency, and
Militia and Defence estimates, includina; $213,300 to extend
work in Dominion Arsenal, Lindsay, and 8428,300 in Do-
minion Arsenal at Quebec.
In Senate: — (a) Debate on advisability of appointing
commercial agents to United States; (b) First readings of
following bills: One to approve Canada-West Indies agree-
ment, and one to amend Currency Act so as to provide for
use of nickel five-cent pieces; (c) Second readings of fol-
lowing bills: One to amend the Judges' Act. one to extend
time for completion of section of St. John and Quebec Rail-
way between Centreville and Andover, one to amend the
Winding-up Act, one arranging for winding-up of Canadian
Wheat Board, and one respecting the Montreal Central Ter-
minal Company, extending time for completion of work.
Friday, April 22
In House of Commons: — (a) Lake of the Woods Control
Board Bill read third time; (b) Grand Trunk Arbitration Bill
debated and read second time; (c) Third readings of fol-
lowing bills: One respecting Western Dominion Railway Co.,
one respecting Credit Foncier Franco-Canadien, one incor-
porating Metropolitan Trust Co. of Canada; (d) Debate on
Grand Trunk Arbitration Bill; (e) First reading bill pro-
viding for retirement of members of public service above
sixty years old who have had ten years' service, or are be-
tween 45 and 60 and have had twenty years' service, at least
with annual retiring allowance equal to one-sixtieth of
average salary during his last three years of service for
every year of his total service.
In Senate: — (a) Concurrence in House of Commons
amendments to Lake of the Woods Control Board Bill; (b)
Third readings of following bills: One giving Dominion Ex-
press Company power to extend its carriage of goods out-
side Canada, one to incorporate Mayo Valley Railway, Ltd.,
one respecting Canadian Pacific Railway Company, and one
to incorporate Canadian Transit Company; (c) Second read-
ing of bill respecting Lake Erie Railway and Transportation
Company, and giving it power to dispose of its property.
Monday, April 2.5
In House of Commons :-^(a) Debate on J. A. Campbell's
resolution asking Dominion to transfer to Prairie Provinces
their natural resources, and Doherty amendment asking for
transfer after agreement reached with all other provinces
as to equitable basis accepted; (b) Third reading Canada
Shipping Act amendment bill (Public Harbors) ; (c) Ac-
ceptance of Dr. Beland's resolution to amend Maple Products
Act so as to prevent sale of any adulterated maple sugar
product unless proportion of maple sugar is shown on pack-
age; (d) Grand Trunk Arbitration Bill read third time and
passed on division.
Tuesday, April 26
In House of Commons: — (a) First readings bill to
amend the Research Council Act and to establish a National
Research Institute, and bill respecting Dominion Express
Company; (b) Immigration Department estimates.
In Senate: — (a) First readings of following bills: One
to amend Canada Shipping Act (Public Harbors), the Grand
Trunk Arbitration bill, one incorporating Metropolitan Trust
Co. of Canada, one respecting Credit Foncier Franco-Cana-
dien, one respecting Western Dominion Railway Co., an Act
to incorporate the Commonwealth Bank of Canada, proposed
by Senator Blain.
Wednesday, April 27
In House of Commons: — (a) Maple Products Bill intro-
duced; (b) Government bill to amend Bankruptcy Act
introduced without explanation; (c) Discussion on Empire
Premiers' Conference agenda at June meeting in London.
In Senate: — (a) Second reading Canada-West Indies
treaty.
Railway Problem Still Unsolved
The raihvay question still occupied the foreground of
interest at Ottawa in consequence of the publication of the
letter of Lord Shaughnessy to Premier Meighen, suggest-
ing that the best method of solving Canada's railway prob-
lem would be to engage the Canadian Pacific Railway Co.
as manager of the Canadian National and government-
owned lines, to consolidate the C.P.R. Canadian lines with
these systems, and to run all as a unit. His advice that the
Grand Trunk Railway should be handed back to the share-
holders after the government took over the Grank Trunk
Pacific obligations, and that the Grand Trunk Pacific should
be included in the plan, seems only partly likely to be
realized as the government had its Grand Trunk Arbitra-
tion bill passed through the Commons as a preliminary meas-
ure to an agreement wath the Grand Trunk Company for
the latter to surrender control. Lord Shaughnessy's pro-
posal that the government should assure dividends to the
various classes of shareholders, and that the management
should be in perpetuity "free from political control," seems
to be the chief ground of debate here although a good deal
of reference is also made to the proposal that the lands,
U.S. railroads and ocean steamships should be segregated
before this arrangement is made.
NEW MONTREAL BOND HOUSE
A new Montreal financial house is being formed, to be
knovni as the Sterling Bond Corporation, Ltd., with a.n
authorized capitalization of $200,000. Offices are being
opened in the Yorkshire Building, 136 St. James St. The
active direction of the company's affairs is being entrusted
to the following officers: President, Howard M. Banks, comp-
troller of the Ogdensburg Coal and Towing Co., Ltd., and
associated companies and senior partner of Banks, Haig and
Lindears, chartered accountants, of New York City; vice-
president and sales manager, C. T. Fillan recently of H.
B. Robinson and Co., investment bankers; secretary-treas.,
A. W. DeWolf, at present of the inspection department of
the Royal B&nk of Canada.
CANADIAN NATIONAL EXPORT CLUB
A new organization, whose object is to develop Canada's
export trade, was inaugurated on April 27th, at a dinner
meeting at the King Edward Hotel, Toronto, of general
managers and export managers of prominent manufacturing
enterprises in Toronto and vicinity and central Ontario. The
new body is to be known as the Canadian National Export
Club, and it is to be devoted to the working out of sound
export principles and to the exchange of reliable information
relating to export trade.
The meeting also approved of the formation of export
clubs in all such localities as may offer scope for their suc-
cessful operation. It was decided that a business meeting
would be held at the King Edward Hotel at 2.15 on May 10,
at which a local club will be formed a^nd a committee was
struck off to decide on a list of officers to be nominated.
The officers were elected as follows: President, R. E.
Jamieson, Montreal; 1st vice-president, Thomas Morton, Tor-
onto; 2nd vice-president, J. J. Foot, London; secretary-
treasurer, Alex. Marshall.
April 29, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
of Canada
Address : Corner Church and Court Streets, Toronto, Ontario, Canada.
Telephone: Main 7404, Branch Exchange connecting all departments.
Cable Address: "Montimea. Toronto."
Winnipeg Office: 1206 McArthnr Building. Telephone Main 8409.
G. W. Goodall, Western Manager.
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tion. It absorbed in 1869 The Intercolonial Journal of Commerce, of
Montreal : in 1870 The Trade Review, of Montreal ; and the Toronto
Journal of Commerce.
The Monetary Times does not necessarily endorse the statements and
opinions of its correspondents, nor does it hold itself responsible therefor.
The Monetary Times invites infoi-mation from its readers to aid in ex-
cluding from its columns fraudulent and objectionable advertisements. All
information will be treated confidentially.
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the circulation department.
PRINCIPAL CONTENTS
Editorial : page
Municipal Railways and Provincial Control 9
A Loss for the Shareholders 9
How Should Business be Taxed ? 10
Realty Financing by Bond Issues 10
Wheat Touches Dollar Mark 10
Special Articles:
Should Cost of Imperial Navy be Shared in? 5
Seeding Now General in Alberta 7
The Week in Parliament s
Financial Business Dull in Capital 14
Trust Company Notes 14
What Will the" 1921 Census Reveal ? 18
The Future of Crown Lands 20
A Crop of Business Failures 22
Mortgage on Land Extinguished by Tax Sales 26
Registration of General Trade Mark 26
Great Britain Will Soon be in the World's Markets
Again 28
Monthly Departments:
Trade of Canada 22
Index Numbers of Wholesale Prices 24
Weekly Departments:
Insurance Licenses and Agency Notes 18
News of Industrial Development in Canada 28
News of Municipal Finance 32
Government and Municipal Bond Market 34
Corporation Finance 38
Recent Fires 40
Corporation Securities Market 44
A LOSS FOR THE SHAREHOLDERS
.MUNICIPAL R.ULWAYS AND PROVINCIAL CONTROL
HOW little of a company's receipts may find their way into
productive assets, and how quickly those assets may
disappear has been demonstrated in the case of the Oakoal
Co. of Canada, Toronto, a concern organized about two years
ago under a provincial charter, but which later obtained a
Dominion charter. Total cash received by the company was
$285,341, of which $201,690 came from shareholders in the
form a subscriptions, $5,000 advanced by a bank, $12,204 in
loans from shareholders, and $41,213 from the sale of
briquettes. This amount was disbursed as follows: Promo-
tion, $72,858, or 26 per cent. ; erection and equipment of
plant, $120,069, or 42 per cent.; office rents, salaries and ex-
penses, $16,898, or 6 per cent.; coal dust on hand and used
in manufacture of briquettes, including wages for same and
pitch, $74,978, or 26 per cent.
The direct liabilities are given as $82,852, and the pre-
ferred liabilities as $5,455. The assets are given as: real
estate, leasehold and buildings, $30,816; machinery, plant,
equipment, supplies, raw material, etc., $72,884; cash on hand
and in bank, $38; accounts receivable, $1,500; 5 shares Tor-
onto Realty Investments, Ltd., $500; shareholders' unpaid
balances, $63,840; patent rights, Ontario, $16,875; Quebec,
$80,000. Total of $169,579. The nominal surplus is placed
at $81,271. Shai'eholders' investment of $455,610 was divided
as follows: Preferred, $223,880; common, $231,730.
This concern was organized by promoters who felt that
they were operating on sound business lines. The promotion
expenses were high, but not such as to destroy the com-
pany's chances of success. The need which the product was
to fill was a temporary one, however, as the acute coal
shortage h?.'S long since passed away. It is proposed that an
effort be made to I'eorganize the company by issuing some
bonds, but the shareholders would be ill advised to send good
money after bad.
/^NTARIO cities which in the past have insisted on public
^-^ control of street railway fares are now maintaining
the absolute right of a city to fix its own fares where the
street railway is publicly owned. The powers of the On-
tario Railway and Municipal Board have hitherto been re-
stricted by reason of the special agreements between muni-
cipalities and street railways operating in them. This dif-
ficulty was to be overcome by an amendment introduced
at the present session of the legislature, the principal
clause of which reads as follows: "Notwithstanding any-
thing to the contrary contained in any agreement with a
municipal or other corporation or person or in any special
act, the fare to be taken by a company on a railway
operated by electricity shall first be approved of by the
board, and no fare shall be charged upon such railway
which has not been so approved."
This measure has been hailed as one for the protection
of the corporations, and Toronto, Hamilton, Guelph, Samia,
Peterboro, Woodstock and other municipalities have op-
posed it vigorously. The necessity for a public body to
stand between a monopolistic corporation and those whom
it served, with a view to equitable ti-eatment for both sides,
became apparent soon after such corporations came into
being.
But a street railway or other public utility enter-
prise is just as much a monopoly when operated by a city
as when operated by a corporation and some of the most
glaring in.iustices in public utility rates have been practiced
by cities. Usually rates have been too low, cheating the tax-
payer for the benefit of those who use the service, but on the
other hand there are instances where a public enterprise
has been used as a taxation machine. To prevent such
injustices, self imposed as they may be, an outside regulat-
ing body is required.
THE MONETARY TIMES
Volume 66
HOW SHOULD BUSINESS BE TAXED?
WHEAT TOUCHES DOLLAR MARK
WITH business interests so strongly ranged against him
it is not likely that the finance minister will renew
the business profits tax for the year 1921. On the other
hand he must consider the necessity for national revenue.
Our fixed charges are high, and current expenditures seem
very difficult to reduce, but some of the chief sources of
revenue, notably the customs tariff, are showing a tendency
towards lower productiveness. What the minister must de-
cide, in fact, is whether to risk the possibility of a deficit
or to continue the burden which the business profits tax has
unquestionablv placed on industry.
It IS not to be assumed that there are some taxes which
are not a burden to someone. But a tax which falls on some
producers of a certain commodity but not on others is dis-
tinctly inequitable, and is therefore unduly burdensome.
And this is just what the business profits tax does, for,
carrying out its original intent of reaching large corpora-
tions, it exempted those firms with capital of less than $50,-
000 during the first three years of its operation, 1915 to
1917, and has exempted all those with capital below $25,-
000 since then. In other words, the shareholder in the large
corporation had to pay the tax, while the small business,
owned by one or a few people and perhaps making a very
high profit on the capital invested, escaped. The business
profits tax is inequitable because it is progressive on cor-
porations, whereas the principle of progression is intended
to be applied to personal income.
In the income tax on corporations the government will
still have a productive means of raising revenue, and one
which is much more equitable. Here the tax is proportional
to the profits of a business, but the large corporation mak-
ing a large profit is not required to pay more per dollar of
capital invested than is the small concern making the same
profit per dollar of capital. The income tax on persons and
coi-porations has now become one of the main sources of na-
tional revenue in Great Britain, the United States and
Canada, and should be retained as such.
REALTY FINANCING BY BOND ISSUES
IN the United States the bond and the first mortgage on
real estate have beeii combined in a form which has
proved eminently suited to the financing of office buildings,
hotels, and apartment houses. These realty or real estate
bonds are issued in the same way as are ordinary corpora-
tion bonds, representing a mortgage deposited with a
trustee and secured by the issuing company's assets. They
appeal not only to bond buyers but also to those who pre-
fer mortgages, as the latter are able to obtain an investment
on the security of real estate without the inconvenience
attaching to the small mortgage. In contrast to ordinary
corporation bonds, however, these realty bonds, bearing
from 6 to 7 per cent, interest and running for periods up
to ten years, are sold at par. Numerous firms make a
specialty of this business, combining it with the purchase
and sale of small first and second mortgages.
In Canada the field has been too small to permit of the
development of such a specialized business. There are,
however, a few examples of bonds of this kind. The bonds
recently sold by the King Edward Hotel Co., Toronto, the
Mount Royal Hotel, Co., Montreal, and the Drummond
Apartments, Montreal, are instances. One of the large
Canadian banks also owns its premises through a subsidiary
company which has issued securities of a similar nature. As
a general rule, however, loans on large real estate properties
have been obtained direct from some of the loan and trust
companies lending money on mortgage. In the revival of
building construction which is bound to come within the next
few years there should be an excellent opportunity for financ-
ing of this kind.
IN former days dollar wheat represented the utmost in
farm commodity prices. Only a few days ago, however,
when it touched the dollar level in the Kansas market, the
event was regarded as well-nigh disastrous to the farmer. It
is not many months since farmers in the United States were
holding their 1920 crop for a high figure, three dollars per
bushel being- regarded as a possibility. The Canadian farmer,
through lack of sufficient funds, was obliged to sell his crop
in the fall and winter, and it was fortunate for him that he
did so.
This action nevertheless had the effect of retarding the
fall in the price of wheat. Now, however, it is certain that
those who held on will lose heavily. The new United States
winter wheat crop is only four months off and it promises
to be a good one. Foreign markets are taking only what
they must have and millers are not in the market. Canadian
holders have recently been offering their wheat a little lower,
in view of the heavy and persistent declines, and they may
have to take much less before July.
Building permits in 56 cities in February were just a
little over half what they were in February, 1920. Builders
last year learned that houses cannot be profitably erected
until costs are substantially lowered.
* * * * *
A banking syndicate, headed by Guaranty Trust Co.,
National City Bank, and the Royal Bank of Canada, has
underwritten an acceptance credit to be granted to the Sugar
Financing Export Co., a Cuban company, formed to assist
Cuban growers and manufacturers of sugar.
Reports from Cuba admit of the leading position of the
Royal Bank among the financial institutions there. It is
safe to say that this is not due to Canadian genius or apti-
tude for foreign business, but to a banking system which
makes possible the free movement of reserves in critical
times.
"Abnormal conditions of the past few years have forced
many excellent securities of the public utility group to prices
far below their potential value," says J. C. Mackintosh an,d
Co., Halifax, in a pamphlet entitled "Things You Should
Know About Public Utilities." Certainly there is relief in
sight for the shareholders, either in the form of adequate
rates or municipal purchase.
Calgary voters turned down by-laws for capital ex-
penditures on utilities, and the revenue from these does not
leave anything for even the smaller improvements which the
superintendents maintain are necessary. This dilemma is a
result of inadequate rates, which, while not necessarily in-
cluding an allowance for new extensions, should at least
cover expenses and fixed charges in such a way that citizens
will not be afraid to make a further investment in them.
THE PREFERRED CREDITOR
A man who had been running a dubious business failed,
and at a meeting of his creditors all but one agreed to accept
his four-months' note for ten cents on the dollar. The debtor
took this man aside and by promising to make him a pre-
ferred creditor he won him over.
When the others had departed, the man said : "Well,
now, I should like what's coming to me."
"Oh," replied the debtor, "you won't get anything, any
more than the others."
"But I thought I was a preferred creditor."
"So you are. These notes won't be paid when they fall
due, but it will take the others four months to find it out
— you know it now, so you see you are preferred."
April 29, 1921
THE MONETARY T I JI E S
Bank of Hamilton
HEAD OFFICE
HAMILTON
Established 1872
Capital Authorized
Capital Paid Up (January 31st, 1921)
Reserve Fund (January 31st, 1921)
$5,000,000.00
4,988,390.00
4,694,195.00
Director*
SIR JOHN HENDRIR. K.C.M.G., C.V.O.. President
CYRUS A. 15IRGE, Vice-President
HOWARD S. AMBROSE C. C DALTOX
ROBT. HOBSON W. E. PHIN
I. PITBLADO, K.C. W. P. RILEY
J. TURNHULL W. A. WOOD
ALAN V. YOUNG
Branches
At Montreal, and throughout the Provinces of
Ontario, Manitoba, Saskatchewan, Alberta and
British Columbia.
Savings Department at all Offices.
Deposits of $1 and upwards received.
Advances made for Manufacturing and F'arming
purposes.
Collections effected in all parts of Canada promptly
and cheaply.
Corretpondence solicited
J. P. BELL - - General Manager
Exclusively Canadian
We take pride in the fact that this is an
exclusively Canadian Bank, with every
effort concentrated on the development of
domestic interests. For forty-five years
our organization and capacities have been
gradually broadening to cope with the in-
creasing demands of industrious Canada.
Consult our local manager regarding your
plans for development.
IMPERIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britaio :— England — Lloyds
Bank, Limited, London, and Branches. Scot-
land The Commercial Bank of Scotland,
Limited. Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France:— Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
File Your Income Tax
Returns
The income tax returns for 1920 of
all indiYiduais resident in Canada
must be filed \Yith the Dominion
Government on or before April
30, 1921. The (jovernment this
year rec|uires you to forward with
your return 25% of the ta.v due.
UNION BANK OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE . TORONTO. ONT.
H. A. Richardson. General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic. Jamaica, and in the United
States at
BOSTO.N CHICAGO NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET. E.C.2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
Aemilius Jarvis has returned to Toronto after a seven
months' cruise in southern waters on his yacht, "The Has-
well."
R. B. MoRLEY, general manager of the Ontario Safety
League for seven years, has been appointed secretai^y-treas-
urer of the Industrial Accident Prevention Association, an
organization formed under the Workmen's Compensation
Act.
M. W. Wilson, superintendent of branches, and S. R.
Noble, general inspector of the head office of the Royal Bank
of Canada, left Montreal last week for England and the con-
tinent. Whilst on the other side they will visit the bank's
offices in London, Paris and Barcelona.
Wm. F. Sangster has been appointed branch manager
of the General Accident Assurance Company of Canada for
the province of
British Columbia,
with offices in the
Yorkshire Build-
ing, Vancouver.
Mr. Sangster was
bom in Glasgow,
Scotland, and came
to this country
about twelve years
ago. He acted as
inspector for the
London and Lan-
cashire Guarantee
and Accident Com-
pany for a num-
ber of years, and
the many friends
he made through-
out the province
of Ontario in that
capacity will be
glad to hear of
his promotion. In
1918 he removed to
Vancouver, where,
before being appointed to his present position, Mr. Sangster
W&3 insurance manager of the Northern Securities, Limited,
and later was resident inspector of the Queensland Insur-
ance Company.
J. E. Trottier, manager of the Bon Secours branch of
the Royal Bank of Canada, left for New York this week,
and on May 4, he will sail for Martinique, one of the French
West Indian Islands, where he will assume charge of the
Fort de France branch of the bank. G. Lamonthe will be
Mr. Trottier's successor.
J. A. Woods, western superintendent of the Bank of
Toronto, has severed his connection with that bank and will
leave Winnipeg about May 10, to join the National City
Bank of New York. Mr. Woods had been connected with the
Bank of Toronto in Winnipeg since 1907. His new duties
will take him to Cuba at first, but his permanent head-
quarters will be in New York.
H. B. Robinson and Co., 151 St. James St., Montreal,
Que., have moved into new and larger offices in the Bank of
Toronto BuHding, 260 St. James St., of that city.
The Canadian schooner "Edgewood" was totally de-
stroyed by fire at Port Antonio, Jamaica, on April 18. The
vessel had recently been ashore while on the way from St.
Thomas, D.W.I.. for Mobile. Insurance for $120,000 was car-
ried on the "Edgewood" in Canada and the United States.
FARMING OUTLOOK IN THE AVEST
The first of this season's crop reports issued by the Sas-
katchewan Department of Agriculture shows that seeding
has commenced in some districts of the province. With the
snow practically all gone, with the exception of a little in
the bluffy country of the east central (Yorkton) district and
in the north, work has started on the land. Heavy frosts at
night have delayed work somewhat until the afternoons, but
wheat seeding has started in several places and will become
general shortly. There appears to be suffiicent seed and feed,
according to the reports received, and the labor question is
being largely supplied by local recruits, with wages ranging
from $50 to $60 a month.
The Calgary Herald's first survey of agricultural condi-
tions for 1921, compiled from reports telegraphed from its
correspondents in various sections of the province, shows that
conditions are almost ideal for spring operations. The heavy
snows of the late winter supplied moisture in the districts
that suffered from drought in the last few years, and the
farmers in these areas are already seeding industriously.
Seeding is general in the south except where the moisture
has been so plentiful that the land cannot yet be worked over,
but a continuation of the warm weather will see all South
and Central Alberta farmers seeding, discing and ploughing.
In spite of the low prices of grain, the majority of the Herald's
correspondents report an increase in the acreage seeded. On
W. T. Rudd'sfarm at Rockyford, the biggest individual enter-
prise of its kind in the province, nineteen drills are seeding
450 acres a day. 1,500 acres have already been seeded, and
5,000 acres will be seeded altcgether. On his son's farm five
drills are busy.
FARMERS ARE HIT BY COAL MINING SITUATION
After spending a few weeks in the west, primarily on
a visit to the mines, but also to interview the farming com-
munity, J. M. Mackie, president of the Hillcrest Collieries,
Ltd., has returned with the statement that, from the farmer's
point of view, the situation is becoming desperate, as the
high freight rates have so reduced the price of his products
that he is not receiving for them what he considers he is
warranted to receive in view of the tremendous price of
everything he buys. The farmer, according to Mr. Mackie's
informants, is struck particularly heavily by the excessive
freight rates, and at the same time realizes that if the rail-
roads are to be of benefit to th9 country they must earn
more than their operating expenses, so that if lower freights
an to come they must in turn be preceded by reduced wages.
Mr. Mackie speaks from a mine-owner's point of view, but
states that he has been particularly struck by the reasoning
of the farmer, and does not doubt that before long this influ-
ence will be a dominating factor.
"It is little wonder that the Farmers' Party movement
in the west has grown so rapidly," said Mr. Mackie, "and it
is bound to be an offset to the domination of trade unionism.
High freight rates, due largely to high wages, hits the west-
ern farmer in two ways: His net return on farm products
shipped out is reduced by the high freight rates, and the
cost of goods he purchases is increased also by the abnormal
rates. What the farmer cannot understand is how such a
readjustment could take place in the products of his farm
without a corresponding readjustment in the item of labor,
especially as the government have practically control of rail-
way rates through the Railroad Board, and they have direct
control over all coal operations whereby they \nrtually fix
the cost of labor and coal.
S. C. R. Crocker, chief agent for Canada of the Glens
Falls Insurance Co., of Glens Falls, N.Y., who has been
located in the offices of the general agents for Canada at
24 Toronto St., will open a separate office at 511 Excelsior
Life Building, Toronto.
April 29, 1921
THE MONETARY TIMES
13
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I The Sterling Bank \
I OF CANADA |
^iiiiniiiiiiiiiiiiiiiiHiiininiiiiiiiiiiiiiiiiiiiiiiiiiiiniiigiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiJiiiiuiiiiiimiiiiiiiiiiiiiiniiiniiJii^
" Personal Banking Service'* is, with us, a recognized
fact. Not only are we prepared to personally assist you
in matters of a financial or investment nature, but
we will gladly obtain any information you desire along
these lines which lies within our power to obtain.
Head Office
KING AND BAY STREETS, TORONTO
The Standard Bank
of Canada
Established 1873 152 Branches
Capital (Authorized by Act of Parliament) SS.OOO.OOO.OO
Capital Paid-up 3,802.001.20
Reserve Fund and Undivided Profits 5.178.643.94
DIRECTORS
Wellington Francis. K.C Hubert Langlois.
President Vice-President
\V. F. Allen. F. W. Cowan, T. B. Greening. H. Langlois,
James Hardy. F.C.A., Thos. H. Wood, Robert Gray.
Head Office. IS King St. West TORONTO" Ont.
C. H. EASSO.N, General Manager
■ J. S. LOUDON, Assistant General Manager
SAVINGS BANK DEPARTMENT .AT ALL BRANCHES
The National Bank of Scotland
Limited
Incorpoi-ated by Royal Charter and Act of Parliament. Establisheu 1825
Capital Subscribed ;^.S.OOO,000 J2.S, 000,000
Paid up 1. 100. 000 5..SOO,000
I'ncalled 3.900,000 19,.SOO,000
Reserve Fund 1,000,000 ,S,000,000
Head Office - EDINBURGH
WILLIAM CARNEGIE. General Manager. GEORGE A. HUNTER, Sec.
LONDON OFFICE-37 NMCHOLAS LANE, LOMBARD ST., E.G. 4
T. C RIDDELL. DUGALD SMITH,
Manager Assistant Manager
The agency of Colonial and Foreign Banks is undertaken, and the Accer
tancesof Customers residing in the Colonics domiciled in London are retired
on terms which will be furnished on application.
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
ESTABUSHED 1879
AUoway & Champion
Bankers and Brokers
Member! ol Winnipeg Stock Eichange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
Gborge Edwards. F.C.A. Arthur H. Edwaros, F.C.A.
H. Percival Edwards W. Pomerov Morgan VV. Herbert Thompson
A. Geoffrey Edwards Oswald N. Edwards
T. J. Macna.mara T. p. Gecgie
K. A. Mapp W. a. Lorimer
Charles E. White
J. L. Atkinson
John M. Edwai
EDWARDS, MORGAN & CO.
CHARTERED ACCOUNTANTS
OFFICES
TORONTO .. .. CANADIAN MORTGAGE BUILDING
CALGARY ..
VANCOUVER
WINNIPEG..
MONTREAL
CORRESPONDENTS
HALIFAX, N.S. ST. JOHN. N.B.
LONDON, ENG. PARIS, FRANCE
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK, USA
Income Tax Returns
Our experience in the prepa-
ration of Income Tax Returns
will relieve you of worry in
the interpretation of the In-
come Tax Act as applicable
to your revenue. Our fee is
moderate for the services ren-
dered.
THE BANKERS'
TBySTGOMB^NY
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
THE MONETARY TIMES
Volume 66
FINANCIAL BUSINESS DULL IN CAPITAL
Little Market for Securities, and Mortgage Situation is (Juiet
— (Jovernmenl Payroll Keeps Retail Business
Steady, However
(Staff Special.)
Ottawa, April 27, 1921.
WHILE a dull session of the House may prevent local
business from thriving, yet Ottawa merchants have to
acknowledge the steadying influence of the immense sum of
money disbursed twice a month to the civil servants on Par-
liament Hill. "Sacrifice" sales such as have been featured in
other cities are not in evidence here, and business seems to
have a better tone than elsewhere. What has caused the
severest blow to the district has been the slump in the lumber
industry. Most of the large plants here and farther up the
Ottawa valley are in operation, but the crucial problem is
now marketing rather than production. It has been found
necessary to release a small proportion of the employees, and
if stocks continue to accumulate, still further action towards
smaller staffs or shorter hours must be taken.
Another business of which Ottawa has a monopoly in
this country, the production of steel engraved stamps, paper
money, and stock and bond certificates, is also feeling the
reaction in business. The larger plant, that of the American
Bank Note Company, does most of the work of this kind in
Canada, including the government's stamp and note issues.
and notes for some of the banks. J. A. Machado, the general
manager, stated that the full staff is being maintained,
although the customary working week of forty-four hours
is reduced to forty by closing on Saturdays. The other plant,
that of the British American Bank Note Company, is also
fairly busy on bank notes and securities, said G. H. Burland.
the secretary. Postage and inland revenue stamps are always
required by the government, the banks must have new notes
to replace those torn or otherwise defaced, and, even if new
security issues are few in number, there are at least some
reorganizations which bring work of this kind.
Government's Banking Business
Several bankers, including C. S. Smith and P. C. Steven-
son, local managers for the Bank of Nova Scotia and Bank
of Commerce, respectively, were interviewed this week by
'/he Monetary Times' representative, and described business
as the dullest in years. A similar opinion was given by A. G.
Parker and D. W. Oliver, manager and assistant manager
of the Bank of Montreal here, although the work done by
this branch in connection with the government means that
a staff of sixty to seventy must always be employed. Last
year, said Mr. Parker, no less than 5,000,000 cheques, notes
and other claims en the government were handled. The gov-
ernment's account is divided into about 150 divisions, con-e-
sponding to departments of administration, and, as claims
reduce the balances in the respective accounts, new amounts
are credited to them from funds provided by the minister
of finance. In this way the estimates for the year are
periodically placed at the disposal of the different branches
to meet the expenditures continually required. Not only has
the bank to maintain separate accounts for the different
branches of administration, but for each branch there is a
"pay-roll" and an ordinary account, not only for the current
fiscal year, but also for several years back, as old cheques
are continually coming thi'ough.
Investments in Poor Demand
Local branches of Montreal ?.nd Toronto brokerage and
underwriting firms report that the nublic is not buving very
freely, although the number of calLrs watching the quota-
tion boards indicates some interest in stocks. Quite a few
speculators were nipped in the Riordon and other declines
in recent months. Ottawa residents of bond houses are doing
a small but steady business. Heffernan and Co., a local house,
report some speculative buying of foreign exchange, and are
also bringing out a stock issue of the Ottawa Nukol Com-
pany. F. Clarkson Wright, another local dealer, stated that
there was some interest in oil and gold stocks.
TRUST COMPANY NOTES
British Empire Steel Business Divided — Sir Frank BaiHie's
Estate of $2,200,000 in Hands of National Tru.st Co.
AMONG the new business acquired by trust companies in
Canada during the past few weeks the most notable
item is the appointment by the British Empire Steel Cor-
poration of the Toronto General Trusts Corporation as
registrar, and of the National Trust Company as transfer
agent. As the British Empire Steel is expected to have'
capital of over $100,000,000, and assets of over $160,000,000,
and the exchange of a large amount of securities is involved,
this should be an important addition to the business of the
trust companies.
Other business recently secured by the Toronto General
Trusts includes the administration of the estate of the late J.
H. Paterson, president of the Toronto Hardware Co., amount-
ing to $5.57,9.50; the estate of the late Charles W. Kerr, bar-
rister, Toronto, amounting. to $40,918; and the estate of the
late Thomas Hunter, contractor, Toronto, amounting to
$51,370.
The National Trust Company has applied for probate of
the will of the late Sir Frank W. Baillie, who died in Toronto
on January 2. The estate amounts to $2,216,583, consisting
of: — Cash on hand and in the bank, $76,144; life insui'ance,
$116,277; real estate, $86,425; stocks, $933,322; bonds, $925,-
483; book debts and promissory notes, $12,484; household
furniture and effects, $12,635; miscellaneous, $53,811.
The National Trust Co. also has the administration of
the estate of the late Justice B. M. Britton, who died on No-
vember 20 in Toronto. It amounts to $3,869,234, and con-
sists of: — Cash, $147,394; mortgages $919,345; real estate,
$94,183; household goods and personal effects, $3,500; book
debts, $31,136; life insurance, $85,539; bonds, $1,859,852;
stocks, $228,282.
The Royal Trust Co. has been appointed transfer agents
and the Montreal Trust Co. registrars for the Bell Telephone
Co. in Toronto.
The Imperial Trust Co. and Wm. D. Hall have been
granted probate of the will and three codicils by which
William Hall, who died in Stouffville, Ont., January 21, be-
queathed his estate, amounting to $65,544.
The estate of the late J. L. Englehart. former chairman
of the T. and N. 0. Railway, will exceed $2,000,000. The
estate will be administered by a London trust company, and
consists largely of real estate in Peti-olea and shares in the
Imperial Oil Co.
An estate, all personal, of a total value of $23,395, was
left by the late Right Hon. Susan Agnes Macdonald, knowm
as the Baroness Macdonald, of Earnscliffe, widow of the
Right Hon. Sir John Alexander Macdonald, Prime Minister
of Canada, and one of the Fathers of Confederation.
Baroness Macdonald died in England on September 5, 1920,
and the will, which was made in England on June 12, 1914,
has been filed for probate in Ottawa. The petitioners were
the Royal Trust Co., who are also appointed executors of the
estate.
Toronto (Jeneral's Vancouver Building
The Toronto General Tioists Co. recently moved into its new
quarters at the corner of Pender and Seymour Streets, Van-
couver, after making extensive alterations to the building
costing considerably in excess of $50,000, and for the whole
property, an investment of over $150,000. The property the
Toronto General acquired extends 32 feet on Pender Street by
120 feet on Seymour Street. The quarters of the Trust Co.,
however, occupies the Pender frontage of 52 feet by 60
feet on Seymour Street. The outside is faced with white
stone and the entrance is at the juncture of the two streets.
Coincident with the moving of the company from the Bank
of Nova Scotia Building to new quarters was the appoint-
ment of Ewart W. Hards as secretary of the British Colum-
bia branch. Mr. Hards joined the late Frank M. Pratt in
opening the branch of the Toronto General in the city on
January 1, 1916.
I
April 29, 1921
THE MONETARY TIMES
Bank of New Zealand
ESTABLISHED IN 1S61
Bankers to the New Zealand Government
CAPITAL
Paid-Up Capital ($13,528,811) and Rewrre Fopd
($12,166,250) $25,695,061
UndiTided Profili 713,039
Aggregate Aiieli at 31it March, 1920 257,500,944
Head Office:
WELLINGTON
NEW ZEALAND
H. BUCKLETON
General Manager
THK HANK OF NEW Z|:aLAND has Branches at
Auckland. Wellineton. Christchurch. Dunedin. and 203 other
places in New Zealand : also at Melbourne and Sydney
(Australia), Suva and Levuka (Fi;i), Apia (Samoa), and
London.
The Bank has facilities for transactinu every description
of Banking Business. It invites the establishment of Wool
and other Produce Credits, either in sterlinR or dollars, with
any of its Australasian Branches.
LONDON OFFICE: I Qoecn Victoria Street, Mansion Honte.E.C. 4
CHIEF CANADIAN AGENTS :
Canadian Bank of Commerce Bank of Montreal
flOMEBANKoFCANADA-
REPORTS ON INVESTMENTS
Any information regarding stocks or bonds or
other form of security may be readily and freely
obtained at this Office. We are in close com-
munication with the Bond Department of our Head
Office, and they will be pleased to give our in-
quiries on your behalf their prompt attention.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s.i
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
head okficb. weyburn. saskatchewan
Branches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midale
Griffin, Colgate, Panguian, Radville, Assiniboia, Benson,
Verwood, Readlyu, Tribune, Expanse, Mossbank, Vantage,
Goodwater, Darmody, Stoughton. Osage, Creelman. Lew-
van, Froude and Ardill.
A GKNHRAL BANKING BUSINESS TRANSACTED
H. O POWELL. General Manager
TH€ MCRCMANTS BANK
Head Ofiice : Montrcii. OF
Capital Paid-up $10,029,622
CA.NA.OA E = t.->bi;ohed lo64.
Reserve Funds and Undivided Prohts, $9,475,585
Tolal Deposits (31sl January, 1921)
Total Assets (3Isl January, 1921)
$152,211,354
$186,528,254
Board of Director* :
President
SIR H. MONTAGU ALLAN
Sir F. Orr Ukk-Lewis, Bart.
Hon. C. C. Ballantyne
Farquhar Robertson
Gto. L. Cains
Alfred B. Evans
Thomas Ahearn
Lt. -Col. J. R. Moodie
Vice-President
Hon. Lorne C. Webster
E. W. Kneeland
Gordon M. McGregor
F. HOWARD WILSON
John Baillie
Norman J. Dawes
Roes H. McMastek
General Manager - - DC. Mai arow
Supt. of Branches and Chief Inspector : T. E. Merrett
General Supervisor • - - W. A. Mei.drum
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses v^ho bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 38 Wall Street : W. M. Ramsay and C. J Crookall, Agents
London, England, Office, 53 Cornhill : J. B. Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
THE MONETARY TIMES
Volume 66
COBALT ORE SHIPMENTS
The following are the shipments of ore from Cobalt
Station, in pounds, for the weelt ended April 22: —
O'Brien Mine, 64,000; Coniagas Mine, 131,275. Total,
195,275. The total since January 1 is 2,441,672 pounds, or
1,220.8 tons.
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended April 22, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
Date.
o
c
<
15
o
Apr. 22 . .
.15
20
0
4
5
1
1
3
0
49
8
Apr. 15 . .
...15
15
4
1
3
2
3
0
0
43
18
Apr. 8 ..
..19
10
0
3
7
0
0
2
0
41
10
Apr. 1 . .
...9
17
1
1
3
0
b
0
0
36
9
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's tra.nscontinental railways for the period ending
April 21st:—
Canadian Pacific Railway.
1921. 1920. Inc. or dec.
April 7 $3,179,000 $3,617,000 — $ 438,000
April 14 3,083,000 3,635,000 — 552,000
April 21 3,085,000 3,624,000 — 539,000
Canadian National Railway.
April 7 $2,103,435 $1,834,118 + $ 269,317
April 14 1,874,815 1,818,934 + 55,881
April 21 1,762,206 1,805,785 — 43,579
Grand Trunk Railway.
April 7 $1,802,346 $1,982,648 — $ 180,302
April 14 1,670,960 1,459,147 + 211,813
NAVIGATION IS NOW IN FULL SWING
Navigation, ocean and inland, is now in full swing, and
the harbor is fast assuming its wonted summer aspect of
bustle and activity. This is the opinion of R. G. Dun and
Co., in their report on conditions in Montreal and district.
Upper lake boats are arriving, and first outgoing grain car-
goes are now being taken on. General business conditions
remain pretty much as last noted, though there is some in-
creased movement in certain lines of heavy merchandise as
water borne freight. Western collections are poor, but in
the eastern provinces payments are fair to good, except in
coastal districts where large stocks of picked and cured fish
are held, for which little sale can be found. A certain
amount of seeding is already reported in the southern sec-
tions of Quebec province. The weekly failure is a light
one, seven district insolvencies being reported, with liabilities
of $101,000.
As regards Toronto and the surrounding district, pre-
valence of unemployment has a tendency to restrict retail
trade within narrower bounds than usual for the time of the
year, but outdoor work will soon provide employment for a
great number, and the balance should find positions in their
regular line. It is evident that many seeking work in Tor-
onto come from other cities and towns where factories were
forced to close and have not yet reopened. Lake traflic by
freight is fair, but the shipments are in small lots and car-
load consignments a rarity. There was a marked improve-
ment in payments lately, despite the fact that renewals are
still considered too frequent.
BANK BRANCH NOTES
The following is a list of branches of Canadian banks
which have been opened recently: —
Blairmore, Alta Home Bank of Canada
Toronto, Ont. (Davenpoi-t Rd.) Dominion Bank of Canada
Colon, Cuba Royal Bank of Canada
H&vana, Vibora, Cuba Royal Bank of Canada
E. V. Leslie, formerly manager of the Bank of Montreal
at IngersoU, Ont., has been appointed manager of the branch
at Goderich. His successor is G. C. Dewar, who was formerly
accountant at the branch at Kingston, Ont.
EXCHANGE QUOTATIONS
Quotations of exchange on European countries and the
United States as at April 28, 1921, with comparisons, are
given below. The Canadian figures are supplied by the
Imperial Bank of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
Ca.n.,Apr21. Can., Apr. 28. N.Y., Apr. 28.
London, cheque . . 442.00 442.25 395.50
France 8.28 8.45 7.65
Germany 1.76 1.75 1.55
Belgium 8.45 8.52 7.70
United States ... 12i%2 p. 12l!ic P-
WEEKLY BANK CLEARINGS
The following are the Bank Clearings for the week ended
April 28, 1921, compared with the corresponding week last
year: —
Week ended Week ended
Apr. 28, '21. Apr. 29, '20. Changes.
Montreal $107,925,325 $115,548,170 — $ 7,622,845
Toronto 91,506,537 98,458,997 — 6,952,460
Winnipeg 49,455,779 42,600,841 + 6,854,938
Vancouver 15,919,459 16,740,171 — 820,712
Ottawa 6,292,297 . 8,183,554 — 1,891,257
Calga.ry ." . . 6,269,573 7,194,550 — 924,977
Hamilton 6,009,009 7,273,565 — 1,264,556
Quebec 6,036,133 5,936,115 + 100,018
Edmonton 4,837,755 6,870,254 — 2,032,499
Halifax 3,220,533 4,486,461 — 1,265,928
London 3,123,035 3,552,183 — 429,148
Regina 3,461,555 4,315,077 — 853,522
St. John 2,694,860 3,543,578 — 848,718
Victoria 2,002,111 2,714,580 — 712,469
Saskatoon 1,692,270 2,165,984 — 473,714
Moose Jaw 1,192,441 1,468,296 — 275,855
Brantford 1,112,191 1,255,079 — 142,888
Brandon 580,854 665,161 — 84,307
Fort William 839,991 737,209 + 102,782
Lethbridge 608,797 842,456 — 233,659
Medicine Hat 363,333 396,726 — 33,393
New Westminster 590,987 700,720 — 109,733
Peterboro 885,057 902,827 — 17,770
Sherbrooke 1,208,266 925,099 -|- 283,167
Kitchener 937,229 1,134,601 — 197,372
Windsor 3,213,215 3,285,900 — 72,685
Prince Albert 277,609 478,643 — 201,034
Totals $322,256,201 $342,376,797 — $20,120,596
Moncton 1,147,770
Hearn and Van Norman, general agents for Canada of
the Glens Falls Insurance Co., of Glens Falls, N.Y., are re-
moving their offices from 24 Toronto St., to 911 C.P.R. Build-
ing, Toronto.
April 29, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 1817)
- $ 24,655,500.00
16,750,000.00
24,655,000.00
- $ 66,061,000.00
$362,338,975.00
Sir JOHN KfSSELL FRENCH. K.BE.. General Manager
:f57 BRANCHES and AGENCIES in the Australian States. New Zealand. Fiji. Papua (New Guinea), and London. The Bank transacts every description
of Australasian Banking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET. E.C.2.
Ac.r.NTS: HAMi OI- MONTKHAL. KOVAL BANK OP CANADA.
PAID UP CAPITAL - - - -
RESERVE FUND ....
RESERVE LIABILITY OF PROPRIETORS
AGGREGATE ASSETS 30th SEPT., 1920
BUSINESS FOUNDED 179S
INCORPORATED IN CANADA 1897
American Bank Note Company
ENGRAVERS AND PRINTERS
BANKNOTES, BONDS, MUNICIPAL DEBENTURES, STOCK
CERTIFICATES, CHEQUES AND OTHER MONETARY DOCUMENTS
Special Safeguards Agai
st Counterleitine Work Acceptable on all Stock Exchan£es
Head Office and Works: OTTAWA 224 Wellington St.
BRANCH OFFICES
WINNIPEG
Union Bank Bide.
I^
An Ounce of Prevention.
Cleanliness and Carefulness
ad lih.
to be taken regularly in large doses.
This is the most potent prescription for fire-itis.
An epidemic that is destroying thousands of
lives and millions of dollars worth of property
throughout the country.
Care and cleanliness are the antidote for fire
as well as the antidote for disease.
Eighty per cent of the fire disease is pre-
ventable.
During the first week of May the boys and girls of the
province are going to inspect our homes where two
out of every three fires occur.
Help this splendid army of young Canadians to PRE-
VENT FIRES BY REMOVING THE CAUSE.
The booklets ■■ Consenation of Life and Property from Fire." and
" Lightnins. its Origin and Control." may be nad for the asking.
ONTARIO FIRE PREVENTION LEAGUE, INC.
In Affiliation with Ontario Fire Marshal'. Office.
153 UNIVERSITY AVENUE - - TORONTO
Ceorge F. Lemis, Secretary)
A Trust Company^ s
Charges
CONTRARY to popular belief, a trust company re-
ceives no more remuneration for its services than
does a private executor or trustee. The amount
is based on a percentage of the funds handled and is
fixed by the Courts when the accounts are audited.
Consider the following advantages which a trust com-
pany offers you :
It is financially responsible.
It is always available.
Its officers have wide experience in the manage-
ment of estates and trusts.
It maintains an up-to-date accounting system
ensuring accuracy.
It furnishes statements to beneficiaries at regular
intervals.
It keeps all papers and documents in Safety
Deposit Vaults.
These and many other advantages can be secured at no
greater cost than private trusteeship. You can readily
see. therefore, that trust company service is the more
efficient and less expensive for you in the end.
Wc solicil your business.
Inlcrvicaers and correspondents invited.
THE
TorotstoGe^eralTrusts
CORPORATIOiS
Head Office: Corner Bay and Melinda Sts. - Toronto
18
THE MONETARY TIMES
Volume 66
WHAT WILL THE 1921 CENSUS REVEAL?
Growth of 1901 to 1911 Decade Has Scarcely Been Repeated
in Last Ten Years — Relative Growth of Provinces,
and of City and Country
(Contributed.)
IN June of this year the sixth decennial census of the Do-
minion will be taken, and already there is considerable
speculation as to the number of our popul&tion then to be
revealed. Various estimates have been published, ranging
from eight to nine millions, but if we except such intimations
as have been given out by the statistical authorities at
Ottawa, most other calculations may be set down £« mere
guesses. The results of previous decennial enumerations are
of record, and so far as the prairie provinces are concerned,
we have some more recent tabulations. Salient facts revealed
by the census of 1911 were: —
1. The unex&mpled growth of population during the im-
mediately previous decade as compared with the three pre-
ceding decades. Our gains had been — from an initial popu-
lation of 3,689,257 in 1871—635,553 in 1881, 508,429 in 1891,
538,076 in 1901, and 1,833,523 in 1911. Thus the gain during
the ten years, 1901-1911, considerably exceeded the gain of
the thirty years, 1871-1901.
2. The rapid growth of Quebec and Ontario, a-nd es-
pecially of the four western provinces of Alberta, British
Columbia, Manitoba and Saskatchewan, as compared with the
eastern provinces of Nova Scotia, New Brunswick and Prince
Edward Isl&nd. In the decade 1901-11 the maritime group
had made a gain of about 5 per cent., while Quebec had
gained about 21% per cent., Ontario 15% per cent., and the
western group 186% per cent.
Rural and Urban Growth
3. The slow growth of the rural population in central
and eastern Canada, compared with the rapid growth of the
urban population. Between 1901 and 1911 the rural popula-
tion of Canada had gained but 574,878, as against a gain of
1,258,645 in the urban districts. Many rura.l districts showed
an actual decrease of people during this prosperous and
growing decade. Four of the nine provinces showed a dim-
inished rural population as compared with 1901. Out of 85
census districts in Ontario 57 showed a decrease of rural
population, while 28 out of 64 districts in Quebec, were in the
same c&tegory. Nova Scotia lost 24,000, Prince Edward lost
10,000, and New Brunswick lost 1,500, a total of 35,500 of
their rural population between 1901 and 1911.
4. The comparatively rapid growth of Quebec as affect-
ing the unit of parliamentary representation. As Quebec has
a fixed representation of 65 members in the House of Com-
mons, and other provinces are limited to a like proportion of
representation to population, this has an important political
significance. The unit of representation as determined by
Quebec's growing population was 18,331 in 1871 and had
increased to 30,817 in 1911. Most persons believe that Que-
bec has grown more rapidly during the past decade th&n any
other of the older provinces, and may now have a total of
2,500,000 souls. If that should prove to be true, the unit of
repi'esentation will be pushed up to 37,000, or practically
double the figures of 50 years ago, and reduced representa-
tion in the House of Commons must follow for Ontario, Nova
Scotic' and New Brunswick. PrinCe Edward Island some
years ago secured for all time to come an irreducible mini-
mum of four members in the House of Commons, together
with the adoption of the principle that the representation of
no province shall hereafter be less than the number of its
senators. New Brunswick is obviously pretty close to this
minimum.
Recent Growth Not so Rapid
Reverting to what is stated in the opening paragraph of
this article as to the prob&ble population of Canada to be
shown by the coming census, it may be observed that the
actual gain in numbers between 1901 and 1911 was 1,883,523,
or 34.13 per cent. A like gain in actual numbers between
1911 and 1921 would give something over 9,000,000, while a
like gain per cent, would give over 9,500,000. There are
several strong reasons for believing that the smaller of these
estimated totfJs is considerably too large. We must remem-
ber that during some five years of the decade, immigration
was cut off; a deadly epidemic of influenza at home added
to our heavy death list abroad during the war; a decreased
birthrate necegSE'rily followed the absence of so many thous-
ands of our vigorous married or marriageable young men;
not by any means all of our soldiers who survived the war
returned to Canada (migration from other provinces to the
prairies makes no increase) ; and there is reason to believe
that the exodus from Canada to the United States was larger
than many persons suppose. For all these reasons I am led
to conclude that an increase of 20 per cent, during the pass-
ing decade will be the most that can be reasonably hoped for.
This would give a population of 8,645,805. A safer estimate
would, in my opinion, be somewhere between eight and eight
and a half millions.
And again reverting to what is above stated in regard
to rural and urban population, there seems little doubt that
the coming census will show that the latter is now consid-
erably the grcE'ter of the two, a fact which must have an
important bearing upon the coming redistribution of seats
in the House of Commons. And this in turn will not be
without its effect upon the rising fortunes of the United
Farmers.
INSURANCE LICENSES AND AGENCY NOTES
Within the past two weeks numerous licenses have been
issued to insurance companies by the Dominion Government.
In every case, however, the authorization given was merely
the extension of scope. The following is a list of companies
so authorized and the class of business which they are allowed
to transact: —
Springfield Fire and Marine Insurance Company; hail.
Canadian Surety Company; insurance against loss or
damage by robbery.
Fidelity and Casualty Company, of New York; insurance
against loss or damage by robbery.
Travelers Indemnity Company; insurance against loss or
damage by robbery.
Dominion of Canada Guarantee and Accident Insurance
Company; insurance against loss or damage by robbery.
Maryland Casualty Company; insurance against loss or
damage by robbery.
Employers' Liability Assurance Corporation, Limited;
insurance against loss or damage by robbei-y.
In addition to the above, several provincial licenses have
also been issued. In Manitoba, the Preferred Accident Insur-
ance Company, of New York, has been registered to transact
accident, sickness and automobile insurance. G. K. W. Watson
is chief agent for the province.
The Union Assurance Society, Ltd., has been authorized
to transact automobile insurance in British Columbia. The
head office for the pi'ovince is at Victoria, and Chas. R. Bishop
is chief agent.
The British Traders Insurance Company, Ltd., has been
reigstered to transact in the province of Quebec the business
of inland marine and ocean marine insurance. Joseph Rowat,
17 St. John Street, Montreal, is chief agert for the province.
License was recently issued to the Motor Union Insur-
ance Company, Ltd., to transact fire, accident and automobile
insurance in the province of Manitoba, and arrangements are
now being made to commence operations in that province.
The company will operate as a member of the Western Can-
ada Fire Underwriters' Association and the Grain Insurance
Association.
J. H. O. P. Boire, who has been with the Guardian Assur-
ance Company for a number of years, has been appointed
inspector of the company for the province of Quebec, to
replace J. A. Malo, who has resigned after many years' work
in that position.
April 29, 1921
THE MONETARY TIMES
Your Lawyer Dislikes
Post-Mortetn Litigation
He dislikes to see your widow and your children deprived of what
you intended for them because of a dispute.'over a will or lack of a will.
Think, then 1 This might happen to your family unless you have
a properly-made Will.
Have you ? If not, you should make one at once, and you should
appoint The Union Trust Company as executor, so that your wishes
will be carried out faithfully and without bias or legal complications
Write now for a free copy of our booklet "■ Why a Will." Vou will
be interested.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS i8o
Winnipeg TORONTO London, Eng.
SHARP & HORNER
ARCHITECTS
73 King Street West •
Toronto
View the Ontario Association o( Architects' Annual Ejihibition. April 30
to May 7. Murray-Kay's store. We have six water-colour perspectives o(
financial buildings, representing over $750,000.00 expenditure.
The Security Trust Company, Limited
Head Office - - Calgary, Alberta
Liqoitlator, Trustee, Receiver, Stock and Bond Brokers,
Administrator, Executor. General Financial Agents.
W. M. CONNACHER . Pres. and .Managinj; Director
Be sure your WILL is made, naming a Strong
TRUST COMPANY as your
EXECUTOR
Ask for Booklet :
CAPITAL. ISSUED AND SUBSCRIBED
PAID-UP CAPITAL AND RESERVE...
The Corporate Executor."
§1,171,700.00
1,172,000.00
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE: WINNIPEG. CAN.
Executors & Administrators Trust CompaDy Limited
HEAD OFFICE - MOOSE JAW. SASK.
Acts at Liquidator, Trustee, Executor, Etc.
al Administrator for
• Judicial District of Moose Ja
nder the Bankruptcy Act
W. A. MUNNS, Manager
"The Monetary Times"
will be sent vou for (our months on
our TRIAL SUBSCRIPTION plan for
$ l.OO
Juat send a dollar bill and your name and address.
It's a Hard Rub
For a woman to unexpectedly find it
necessary to become a breadwinner.
You wouldn't like your wife to come
to that, would you ?
But what about your widow ? Why not
provide for her a regular monthly income
to begin at your death and continue as long
as she lives ? You can do it by means of
an Imperial Life policy.
THE IMPERIAL LIFE
Assurance Company of Canada
HEAD OFFICE
TORONTO
^
20
THE MONETARY TIMES
Volume 66
THE FUTURE OF CROWN LANDS
Should be Asset Preserved for Benefit of People as a Whole-
Past Policy Not Satisfactory
By Andrew T. Drummond
IN connection with tVieir natural resources, tlie great prob-
lem which the provinces of Ontario and Quebec have to
confront to-day is how to so conserve the vast Laurentian
and Huronian areas lying to the north of the more settled
sections that these areas may be, in the future, sources of
permanent annual revenue for their governments, and of
permanent supply of valuable timber, mineral, fur and food
products for the country and for export. Both the govern-
ments and the press have recently taken some increased in-
terest in foi-est pi-otection and in reforestation, and this
seems to open the way for discussing its other phases as
well.
The suggestions made, more especially early this year,
to the government of Ontario, and, subsequently, to those
of the other provinces interested in forests, included various
proposals — all feasible — looking primarily to a more dis-
criminating management and care of the Crown lands and
their associated interests; the rehabilitation of the vast
burned and cut over areas within them ; and the gradual
reinstatement of the whole as a great national asset for
the future. The objects sought were — to put them concisely:
increased piotection of the timber from forest fires and from
ruthless cutting; reforestation, naturally and artificially, of
the burned and cut over areas; protection, breeding and in-
crease of the fur bearing animals; protection of the wild
birds and the stocking of the lakes with fish; and, gen-
erally, permanent timber, pulpwood, fur,i hide, food, and
other supplies for the country and, at the same time, per-
manent annual revenue for the governments. It must be
remembered that these are all associated interests, for the
forests and streams are largely the shelter and home of the
fur bearing animals, and the innumerable lakes the. resorts
of the fish, and that wherever, as has been, in the past, over
such immense areas, these forests have been depleted or
actually destroyed by ruthless lumbering or by fire, there
has been similar extensive destruction among the fur bear-
ing animals and the birds, whilst contamination of the waters
of the rivers and lakes by lumber waste and mill chemicals
play havoc with the fish.
The problem is pressing. The pocket book of the public
has been severely drawn on. Lumber has become scarce and
has gone up hugely in price, paper of all kinds has in-
creased to fo^r times its former value, newspapers have
had to increase their subscription rates, the beautiful furs
of former days are only now within the reach of the rich,
fish, which in this country of vast lakes and rivers, should
be on every table, are scarce and expensive, whilst wild
game from our forests and marshes has become almost a
luxury of the past. As Dr. Baker, of the American Paper
and Pulp Association, forcibly puts it: "Are we to continue
a vandal program of desti-oying wherever possible, and build-
ing up nothing in return?"
Care in Cutting Timber
In carrying out the suggestions made to the government,
the proposal was that, on every limit leased, and on every
forest reserve, there should be trained forest engineers, with
wide powers, to direct the cutting of the timber on recognized
forestry principles; to establisli special measures for fire
protection in addition to those employed by the government;
to carry out reforestation by not only facilitating the work
of nature, but by establishing nurseries, and engaging in
systematic replanting of desirablel species; to protect the
fur bearing animals and the birds from sportsmen, hunters,
canipers, local employees and settlers; and to guard the
lakes and rivers from pollution.
Some extra expense to the limit holders will, doubtless,
result from the carrying out of these suggestions, but who
will not say that the thoughtless policy of governments of
past decades in permitting the lumbermen to operate on the
Crown lands in such way as best suited their personal in-
terests, and without the slightest regard for fire protection
and to future lumber supplies, has found its disastrous
Nemesis in vast districts of burned and cut over lands which
have been, and are continuing to be, reforested, not by the
noble white pine, which in the early days of Ontario was
such a conspicuous feature of especially the valley of the
Ottawa, and even of the south western peninsula, but, so
generally, with less desirable and less useful trees. The
time has come when the Crown lands must be regarded by
the governments as a trust for the people of the future,
as well as of the present, and, when leased, to be treated
fairly by the leaseholder during his term, and not, at its
end, throv%'n back on the government, shorn by fire and
severe cutting, of all of its value for fifty to one hundred
years, even with the best of care in reforestation.
Reforestation
Reforestation cannot be left entirely to nature. Man
and nature must co-operate. The white pine, the most im-
portant tree in the immediate north country, is slow in na-
turally reproducing itself, and the red pine may be of like
habit. All over this north country there are many thousands
of square miles of burned and cut over lands awaiting re-
planting with more desirable trees than aspen and birch,
and the remaining uncut timber limits still available are
diminishing fast. Three or four pulp and paper companies
seem, thus far in Canada, to be the only limit holders that
have voluntarily taken up replanting in earnest. The gov-
ernments, in the interests of their own future revenue and
of the country's home and export business, must awake from
the lethargy of the past. Fire protection, it is to be hoped,
has been permanently taken hold of by them in a more
vigorous way. Replanting should follow at once, as a pine
will require, under any circumstances, about seventy-five
years to attain a commercial size for the lumber mill.
But another problem has come to the front. The manu-
factui'er of dimension timber, deals and boards requires at
least a certain size of tree: the paper pulp manufacturer
seeks one of much smaller diameter. So large has become
the demand for pulpwood lands, that the governments must
at once face the question whether, if, in a given district, all
of the suitable trees of the smaller sizes are cut for pulp-
wood, there will be much timber left, which, in course of
years, would increase in size, and become ready for the pur-
poses of the manufacturers of dimension timber deals and
boards. If, as the recent advertisements of the Ontario
Department of Lands and Forests imply, pulpwood and pine
timber are to be cut simultaneously on the same tract, the
possibility of future supplies of large timber from that tract
will be very meagre for seventy-five to one hundred years.
What seems suggestive is that the pulp mill owners should
be relegated to suitable localities in the more northern dis-
tricts where the trees do not grow to sizes sufficient for con-
struction purposes, and that the central and more southern
districts should be reserved for the larger timber.
LA SAUVEGARDE LIFE INSURANCE COMPANY
The 1920 statement of La Sauvegarde Life Insurance
Company, Montreal, shows receipts of $289,112 from pre-
miums and $84,709 from interest, rents, etc., making a total
of $373,821. Payments to policyholders totalled $68,988, com-
missions $61,569, general expenses $47,936, and taxes $6,114.
making a total expenditure of $184,608.
Assets now total $1,949,528, or nearly double what they
were in 1914. They are composed as follows: Building in
Montreal, $479,134; bonds, $1,249,458; loans on policies, $134,-
892; cash, $13,313; premiums due from agents, $42,090; in-
tei-est, due and accrued, $21,419; miscellaneous, $3,990; fur-
niture, etc., $5,230. The reserve is $1,422,997, and the sur-
plus, after providing for all other liabilities, $103,892. Busi-
ness in force now totals $9,652,821.
April 29, 1921
THE MONETARY TIMES
The Saskatchewan Mortgage and
Trust Corporation Limited
{Trustee under Bankruptcy Act)
offer you the benefit of their experience as
EXECUTORS, ADMINISTRATORS, TRUSTEES,
MANAGEMENT OF ESTATES, ETC.
MONEY TO LOAN ON IMPROVED FARMS
AND MODERN CITY PROPERTY
REGINA
SASK
A BOND FOR $100
$100 or more invested in a " Canada Permanent " Bond
for ONE YEAR will earn interest at FIVE PER CENT, per
annum, payable half-yearly. A higher rate is paid on longer
term investments. Interest begins the day the money is re-
ceived, and the Bond will be made to become due on any date
the investor desires.
The Bonds are issued in small sums and for short terms
to enable those of moderate means to obtain a high grade se-
curity yielding a fair return and still have their funds avail-
able within a reasonable time. Small amounts should not be
allowed to remain idle when they can be employed to such
good advantage as by investing them in these Bonds-
The Corporation has been issuing these Bonds for near-
ly half a centuri'. They are a first charge against its assets,
which amount to over 833.000.000.
Canada Permanent Mortgage Corporation
14-18 TORONTO STREET - - TORONTO
Established 1855
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple Building, London. Canada
Interest at 4 per cent, payable half-yearly on Debentures
T. H. PURDO.M. K.C., President NATHAN'lEL .MILLS, Manager
The Hamilton Provident and Loan Corporation
Head Office, Kins Street. Hamilton, Ont.
Capital Paid-up. $1,200,000. Reierve Fund and Surplus
Profit*, $1,315,587.70. Total Auet*. $4,800,104.82.
TRUSTEES AND EXECUTORS are authorized by Law to invest Trust
Funds in the DEBENTURES and SAVINGS DEPARTME.NT of this
GEORGE HOPE. President U. M. CAMERON. General Manager
"^""^ Ontario Loan
& Debenture Co.
LONDON Incorporated 1870
CAPITAI, And Reserve Fund
Canada
»4, 000. 000
511
SHORT TKRM (1 TO 5 VEAR.S)
DEBENTURES
YIELD INVESTORS
5^1
JOHN McCLARV. President
A. M. SMART, .Manager
/^\'ER 'JOO Corporations,
^"^ Societies, Trustees and
Iiitiividuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG. Man.
THE TORONTO MORTGAGE COMPANY
Office, No. 13 Toronto Street
Capital Account, »:SI.5S0.«M» Reserve Fund lii;<M»,(MMI.<H(
Total Assets, #.'»,I88,M»0.«0
President, WELLINGTON FRANCIS. Esq., K.C.
Vice-President. HERBERT LA.NGLOIS. Esq.
Debentures issued to pay 5i-^^o. a LeKal Investment for Trust Funds.
Deposits received at 4';'v. interest, withdrawable by cheque.
Loans made on improved Real Estate on favorable terms.
WALTER GILLESPIE. Manager
Six per cent. Debentures
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inqairie* Invited
General Manager Lieut. -Col. G. H. DORRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts Bs Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any otli«r fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official -Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch OKice
Swift Current, Saskatchewan
TOHN R LITTLE, Managing Director
22
THE MONETARY TIMES
Volume 66
Unfavorable Trade Balance of $51,000,000
Figures For the Fiscal Year Show a Substantial Excess of Imports Over Exports
— Our Purchases Increased By About Twenty-One Millions in March, While Our
Sales Abroad Advanced Only Slightly — Result of Our Export Trade in
Agricultural Products and Wood and Paper for the Year Was Very Favorable
ALTHOUGH the total value of Canada's trade for the fiscal
year ending Ma-rch 31 last, was $99,378,297 greater than
for the previous year, figures covering the month of March
alone show a decided drop in the trade of the Dominion.
A glance at the figures shows that the major part of the
reduction is due to a falling off in the v&lue of imports. In
March, 1920, Canada imported goods to the value of $142,-
497,365. Last month the total value of imports was only
$92,566,829. This is a decrease amounting to $49,930,536.
The decrease in value of domestic exports during the month,
as compared with March, 1920, totals $25,040,431. In March,
1920, domestic goods to the value of $93,193,859 were exported
from the Dominion, while in March, 1921, the value of do-
mestic exports was only $68,092,428.
The increase in imports last month was rather surpris-
ing in view of the tendency which has prevailed of late.
As compared with February the advance was a.bout $21,-
000,000, which was largely the result of a greater volume of
purchases of agricultural and vegetable products, fibres and
textiles, and iron and steel. Exports increased only $3,000,-
000 over the previous month, due principally to larger sales
of wood and paper abroad. Details of the statement for
March and the twelve months, with comparisons, are as
follows: —
IMPORTS
ENTERED FOR HOME
CONSIIIMPTIOK
Month of March
j Twelve months ending March
1920
1921
1920
1921
Free
Dutiable
Free
Dutiable
Free
Dutiable
Free
Dutiable
S
5.549.423
6,491.783
6.799.011
11,016.510
1,588.557
3,310.277
2,432.415
6,187.812
2.399,306
3.053,284
?
18,386,013
5,264,873
4,928,0.34
24,827.038
2,099,072
20,182,487
4,365,050
6,951,480
3,021,170
3,643,770
S
2,280,727
2,197.321
1 ,047,335
2,444.383
776.041
1,885,519
1,079,094
6,629,393
1,579,983
2,462.495
$
14,155.956
10,305,586
3.533,305
10,197.351
1,490,439
13,625.618
2.866,793
9,156.862
2,332,248
2,520,380
8
37.986,986
47.267.033
42,165,082
t 75,023.234
j 11.991,619
31,075,486
19,322,603
! 60,560,689
18,346,040
27,134,186
128,586.802
28,234,568
52,933,647
156.136,657
17,894,483
135,244,390
32,781.310
61,395,487
24,8.37.227
35,298,640
38,523,482
37,743.852
25.314.723
72,349,700
16.342,153
43,302.245
15,630.388
83.458,942
23,479,592
36,252,397
«
131,333,950
53.480,071
36,407,665
171,058,642
19,992,439
202,324,208
39,922,764
122,636.171
Fibres, textiles and textile products
Ores, metals and metal manufacture
Non-metallic minerals and products
s. other than iron and steel..
36,401.849
Total
48,828,378
93,668.987
22.382.291
70,184,338
; 370,872,«)58
693,643,211
392,597,476
847.527,580
Duty collected
24.536,122
13,867.172
i
187,524,181
Month of March
!
Twelve months ending March
1920
1921
1920
1921
Domestic
Foreign
Domestic
Foreign
Domestic
Foreign
Domestic
Foreign
Agricultural and vegetable products, mainly foods
23,352,841
2,790,997
18,208,915
3,543,650
2,333,828
8,001,822
7,211,254
.2.852.823
22,934,881
1,901,848
8
269,156
22,918
253.273
280,656
140,711
3,748,113
80,368
21,797
75,141
194,017
9
25,812,390
1 ,327,851
7,922,449
696,060
1,675,490
4,021,568
2,846,923
2,542,561
19.813,456
1,433,680
9
153,706
43,018
99,423
154,877
131,993
269,231
69,249
26,043
40,229
375,658
S
383,319,569
32,803,202
314,017,944
34,028,314
22,217,991
81,785,829
.35,347,802
30,289,333
213,917,797
71,764,317
$
4,890,000
l.,331.943
6.565.660
3,923,765
3,336,274
18,058,937
2,597,839
590.0S2
535,409
4,916,702
S
438,436,398
24,468,074
188,359,937
18,763,884
19,344,424
76,300,741
46,177,004
40,034,566
284,561,478
32,476,995
S
1,447.098
Agricultural and vegetable products, other than foods
371,447
Animals and animal products
1,433,501
Fibres, textiles and textile products
2,626,801
Chemicals and chemical products
1,111,680
Iron and steel and manufactures thereof. . .
8,382,412
Ores, metals and metal manufactures, other than iron and steel
846,500
872,761
Wood, wood products, paper and manufactures . . , ,
551,189
Miscellaneous
3,421.029
Total
93,132.859
5,086.150
68,092.428
1,375,447
1.239,492,098
47.166,611
1,189,163,701
21,264,418
RECAPITULATION
Month of March
Twelve months ending Mar,
1920
1921
1920 1 1921
Merchandise entered for consumption
Merchandise, domestic, exported
Total
$
142,497,363
93.132.859
92,566,829
68.092.428
*
1,064,516,169
1,235,492,098
$
1,240,125,0.56
1.189,163,701
235.630.224
5,086,150
160.659.237
1,373,447
2.304.008.267
47,166,611
2,429,288,757
21,264,418
240,716,374
162,034,704
2,351,174,878
2,450,553.175
April 29, 1921
THE MONETARY TIMES
CROP REPORTS
FROM information collected through its network of
Branches across Canada, the Bank of Montreal
compiles periodical reports covering crop conditions in
every part of the Dominion. These reports are trans-
mitted over private telegraph lines to central cities, from
w^hich they are mailed free to persons desiring the
information they contain.
If you wish your name to be placed on the mailing list,
notify the nearest branch, or the Head Office in Montreal.
BANK OF MONTREAL
ESTABLISHED ()\ HR 100 YEARS
A Complete Hanking Service
A "CROP" OF BUSINESS FAILURES
A STRIKING example of how Canada has been affected
by the world-wide slump in business, is Riven in the
quarterly summary of failures by R. G. Dun and Co. The
number is not as large as in the early years of the war. but
the amount of assets and li&bilities involved is by far the
greatest recorded for any similar period. This would seem
to indicate that many large companies have gone under.
It will be seen from the table given below that 566 com-
panies went into insolvency during the first three months
of this year, which is very much in excess of the figure for
the same period of 1920, and which is more th&n half of the
total for the whole of last year.
For the twelve months of 1920 the total number of
failures was 1,078, with assets of $18,569,516 and liabilities
of $26,494,301. By comparing these results with the follow-
ing, the situation is clearly apparent: —
Total commercial.
Manufacturing.
Trading.
Other commercial.
Banking.
Provinces.
No.
Assets.
Liabilities.
No.
Liabilities.
No.
Liabilities.
No.
Liabilities. No. Liabilts.
137
$ 8,856,073
$ 8,531,089
46
$ 7,376,879
88
$1,050,210
2,911,957
231,353
3
$ 104,000
1,193,481
Quebec
239
5,622,146
7,804,867
57
3,699,429
254,179
164
18
British Columbia ....
25
372,999
485,532
10
15
Nova Scotia
28
563,666
1,653,301
4
18,334
22
1,551,017
2
83,950
Newfoundland
16
388,100
1,380,223
15
1,367,223
1
13,000
36
984.822
1,437,901
6
280,142
26
1,120,605
103,400
4
37,154
New Brunswiclc
9
134,100
203,400
2
100,000
7
Prince Edward Island
6
25,000
76,200
6
76,200
Alberta
28
176,800
162 500
5
2,500
26,248
20
57,000
472,959
3
103,000
Saskatche
wan
1921
42
566
463,749
510,507
1 ■
131
40
403
1
32
11,300
Total
$17,587,455
$22,245,520
$11,757,711
$8,941,924
$1,545,885
"
1920
209
$ 3,027,068
$ 4,327,184
44
$ 2,834,687
156
$1,279,906
9
$ 212,.591
"
1919
217
3,183,893
4,769,637
64
3,069,666
140
1,603,310
13
96,661
*'
1918
288
3,566,820
5,137,042
75
3,192,924
197
1,837,114
16
107,004
"
1917
370
4,152,230
5,921,327
83
1,982,095
270
2,709,946
17
1,229,286
"
1916
596
5,795,620
9,344,441
120
2,750,905
441
4,322,664
35
2,270,872
'•
1915
798
9,925,218
15,636,915
198
6,428,214
568
6,448,590
32
2,760,111
"
1914
620
5,175,538
6,230,052
144
2,494,095
456
3,458,493
20
277,464
"
1913
408
3,901,070
4,939,061
100
2,182,516
299
2,181,573
9
574,972
"
1912
429
2,178,573
3,120,015
94
900,448
314
2,105,556
21
114,011
1911
367
2,064,242
2,876,705
80
774,445
281
2,083,260
6
19,000
1 $549,830
1910
426
3,016,617
4,021,584
80
1,747,225
339
2,238,423
7
35,936
1909
425
4,798,375
4,814,627
100
1,077,991
313
2,839,493
12
897.233 .
24
THE MONETARY TIMES
Volume 66
MARCH INDEX NUMBER AGAIN DECLINED
Wholesale Prices of Some Commodities Showed Tendency to
Become Firmer, However, Particularly in Foodstuffs
COLLECTIVELY, wholesale prices again moved downward
in March, 1920, the index number for 262 commodities
being 263.1, compared with 270.1 in the preceding month
and .•J49.0 in March, 1920.
The downward trend last month was not regular, how-
ever, prices of foodstuffs, particularly, showing a tendency
to become firmer. Increases were especially noticeable in
meats, fruits and vegetables. Dairy products declined. Most
of the other commodities were lower, the most important de-
creases being in textiles, leather and boots and shoes, metals
and implements, building materials, and drugs and chemicals.
Details of the March index numbers, as compiled by the
Department of Labor, compare as follows:
■a
°H.S
oE.t!
6
i
15
d
6
3
2
17
3
9
1
J
(
5
16
lu
4
6
5
■is
5
i
3
2
1
'i
■to
1
4
3
11
11
12
10
33
B
1
10
u
20
U
18
6
i
■I
1
16
16
i
6
7
17
Index N
umbers
FIGURES)
♦Mar.
1. -.'1
*Feb.
11.21
*Mar.
1920
Mar.
lS-14
1. Grains and Fodders:
233.2
207.5
2J4.1
22U.9
280.2
288. H
38.6
553.2
308.1
268.8
200,5
254.9
218.6
258.8
238.7
1H2.3
177.0
171.7
20'J.6
245.6
210.1
2i8.5
201.-.'
234.1
213.4
231.4
1 = 5.3
30.. 9
361.3
252.1
258.9
128.7
205.5
257.8
1S2.8
2:'6.4
l.i3.2
256.1
:08.8
284.3
262.5
275. B
418.3
251.2
318.2
3.2.9
436.5
512.0
161.1
286.5
c81.5
205 2
19S.0
2'*.0
187.7
299.6
223 7
210.0
2K6 0
231 1
278 1
2!'4 3
551 1
306 6
284 8
200 5
254 9
il3 6
239.0
239 7
195 9
172 9
168 5
1 4 4
218.8
210 1
2/il 4
202 1
236 2
213 4
241 8
137 2
.337 9
374 9
252 1
2l6 8
136 2
218 1
257.8
206 4
237.4
161 0
271 0
2.'0 9
286.4
L'62 5
276.8
132. H
255 1
356.4
336.4
136 5
512.1.
161 1
286 5
384 5
213,4
4^2.1
296.8
lHt.3
300 5
403 9
4:i3 7
30O 4
381 0
344 5
363 9
283 8
476 6
356 5
317 9
229 4
263 2
240 6
312 5
201 0
283 1
589 3
nn 3
352 7
:<04 3
291 0
373 8
231 «
■;i93 1
412 7
387 6
261 J
676 6
0.9.9
274 0
420 9
429 1
315 0
339 7
363 2
262 3
235 7
250 3
2;0 2
258 3
249 1
254 7
485 n
250 3
471 1
3S3.2
419 2
439 0
161 1
263 6
.364 5
V19.5
1851 4
316.3
•-'05 3
631 7
31H 0
114.3
125.6
163.8
145.8
Western
Fodder
All
II. Anibals and Meats :
Hogs and hog products
Sheep and mutton.
175.9
170 4
2-'1.8
All
III. Dairy Products
IV Fish :
16J.9
Prepared fish
Fresh fish
161.0
156.1
All
V. Other Foods;
(a) Fruits and vegetables
Fresh fruits, foreign
84.2
Fresh vegetables
Canned vegetables
All
188.7
(b) Miscellaneous groceries
Breadstuffs
124.4
102 8
104.6
112.5
i:s.o
144 7
Condiments
All
VI. Te.\tu.es :
Woollens
Silks
Jutes
226.5
114.7
Flax products
Oilcloths
All
VII. Hides. Leather, Boots AND Shoes:
Hides and tallow
Leather
Boots and Shoes
All
VIII. Metals AND I.mplements:
Other metals
All
IX. Fuel AND Lighting:
Fuel
All
X. Building Materials:
128.5
92.7
111 2
Paints, oils and glass
All
XI. House Furnishings ■
Furniture .:
Crockery and glassware
Table cutlery
Kitchen furnishings
All
XII. Drugs and Chebicals
111.1
XIII. Miscellaneous:
Raw Furs
138.8
Sundries
All commodities
262t
•263 1
270.1
1.17.0
•Preliminary figures. +Nine commodities off ths
one line of spelter was dropped in I91S.
market, fruits, vegetables, etc
Norman Sommerville and Company is the name of a
legal firm which has just commenced practice in Toronto,
giving special attention to corporation, commercial and taxa-
tion law.
RRANDRAM-HENDERSON
i^^^^^^^"""^™^""""^"* *■— ^^""——i"— LIMITED
Annual Report of Board of Directors
To the Shareholders,
Your Directors herewith submit their Fourteenth An-
nual Report, with Statement of Assets and Liabilities, and
Abstract of Profit and Loss Account, for the year ending
December 31st, 1920.
The net profits amounted to $120,835.51, which, with the
surplus arising from re-valuation of properties, $449,544.33,
along with the balance of $639,027.11 carried forward from
the previous year, makes the sum of $1,209,406.95. Out
of this sum has been paid the dividend on the Preferred
Stock of $35,000.00 at the rate of seven per cent., and the
dividend on the Common Stock of $48,500.00 at the rate of
five per cent., and also the interest on the issues of First and
Consolidated Bonds, respectively, including a reserve provided
on both issues for the months of October, November and De-
cember, amounting to $59,934.99. The sum of $7,500.00 has
been provided for a reserve for depreciation, also $20,965.23
for the fifth year's war tax, and the sum of $140,000.00 as a
reserve for stocks of Merchandise. The total at the credit
of Profit and Loss Account after the deduction of these pro-
visions is $897,506.73.
The cost of upkeep and renewals incurred during the
year at all the Company's plants has been charged to operat-
ing expense.
Messrs. P. S. Ross & Sons, as in the past, have audited
the books and accounts, and their report is herewith submitted.
RE-VALUATION OF PROPERTIES
The re-valuation of the Company's properties, decided
upon a year ago because of the greatly increased value of
much of its real estate and the very favorable basis on which
Toronto and other properties had been acquired, was con-
ducted by appraisal houses of the highest standing, and fol-
lowing our conservative practice, only "depreciated values"
on plant and equipment have been employed. The extensions
undertaken during the year as referred to in the last report,
have been included in the re-valuation.
Both from the home and the export fields, during' the
early part of the year 1920, we were flooded with orders,
and although operating difficulties resulting from the attitude
of labor kept profits below what they should have been, re-
sults were eminently satisfactory for the first six months.
Concurrently with the rapid decline in metals and flax seed,
which developed in August and continued uninterruptedly to
the end of the year, we experienced a succession of overseas
cancellations, due to these same conditions, and also a great
shrinkage in the home demand, both of which considerations
accentuated our inventory losses.
RE.SERVE FOR MERCHANDISE
A radical policy by way of protecting the year 1921 has
been adopted in establishing a reserve for merchandise of
$140,000.00. The Company is in an excellent position to com-
pete for business, which is now showing distinct signs of re-
vival after the long depression.
Your subsidiary. The Alberta Linseed Oil Company,
Limited, continues to prove, both directly and indirectly, of
value to the parent Company.
The direction of the sales policy and general conduct of
The Pacific White Lead Company, Limited, continues in the
hands of your Company, and it has been decided to link up
the two companies in a still closer association.
Your Directors consider the position of the Company
warrants their recommendation of a continuance of the
present dividend of seven per cent, on the Preferred and five
per cent, on the Common Stocks, paj-^ble quarterly to share-
holders of record one month prior to dates of quarterly pay-
ments.
In conclusion your Directors wish to take advantage of
the opportunity to express their appreciation of the faithful
and efficient services of the officers and employees of the
Company.
All of which is respectfully submitted on behalf of the
Directors. GEORGE HENDERSON,
Halifax. April 28, 1921. President and General Manager
541
April 29, 1921
THE MONETARY TIMES
25
£!IIIIIIIIIIIIIIMMIIIIIIIIIIIIIMIMIIIIIMIIIIIMIMMMIIIIIIIIIIMIIMIIIUIIinilllllMIIMIIIIIMIIIIIIIIIIIIIIillllllllllinUIIIIIIIIIIIIIIIIIII!IMIIIIIIIIIIIIIIIIIB
I CHARTERED ACCOUNTANTS |
nlllllllllMMIIIIIIimilllllinilllllllllllllllinillilMIIIIIIIIIIIIMMMMinillllllUIIIIIIIIIIMMIIIUIIIIIIlllinilllMllllllllllilllllllMllllllllllllllllllllllllll^
KENNETH BOWMAN
Chartered Accountant
(Successor to Baldwin, Dow & BowmanI
EDMONTON
ALBERTA
CHARLES D. CORBOULD
Chartered Accoontant and Anditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
Correspondents at Toronto. London, EnR-,
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
W. A Bawden, C,A. (F,C,A. EnRland and
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Brancb at Naoaimo, B.C.
Telegraphic and Cable Address:
"Nedwab, ■ Victoria, B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 ConiederatioD Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problemt
Bank of Tor
LONDON
ito Chambers
ONTARIO
W. A. Henderson & Co.
Chartered Accountants
S08-509 Electric Railway Chamber!
Winnipeg, Man.
Arthur E. Phillips & Co.
Chartered Accountants
508-509 Electric Railway Chambers
WINNIPEG - Man.
Cable Address— ■ Unravel. •
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS
24 King Street West - TORONTO
AND AT:^
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
SERVICE
Thorne, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Specialists on Factobv Costs ami Production
Bank of
Hamilton BIdg.
TORONTO
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Mun 7014
LUMSDEN BUILDING - TORONTO, CANADA
F. C.S. TURNER &C0.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Chartered Accountants. Trustees.
Receivers. Liquidators
Merchants Bank BIdg.. 15 Wellington Street West ToronI
Established 186J r' .i' niKvo^r
RUTHERFORD WILLIAMSON 4 CO.
Chartered Accoiint,inls. Trustees and
Liquidators
86 Adelaide Street East, TORONTO
6(M McGiLL Building. .MONTREAL
Cable Address-' WILLCO."
Represented at Halifax, St. John, Winnipeg,
Vancouver.
THE MONETARY TIMES
MORTGAGE ON LAND EXTINGUISHED BY TAX SALE
Decision of Alberta Supreme Court Based on Clause in Ed-
monton Charter — Does Not Prevent Suit on
Personal Covenant, However
"I am of the opinion that sub-sec. 16(a) of sec. 1, 10
Geo. V. 1920, ch. 3, should be given effect to in the present
instance by allowing the mortgagee to proceed upon the
covenant and to issue execution thereon."
IN a case stated in an action on a mortgage, the Alberta
Supreme Court held that under sec. 63 of the Edmonton
charter, where a mortgagee allows the mortgaged property
to be sold for taxes and becomes the owner at the tax sale,
the mortgage so far as it is a charge against the land is
extinguished, but the Court may give effect to 10 Geo. V.
1920, ch. 3, sec. 1 (16a) and allow the plaintiff to proceed
upon the personal covenant in the mortgage and issue
execution thereon.
The case was that of Western Canada Mortgage Co.
vs. O'Farrell and the facts and judgment per Justice Sim-
mons are: "The plaintiff sues upon the covenant of the
defendant in a certain mortgage given by the defendant
to the plaintiff, September 15, 1911, which was varied as
to the dates of payment by an agreement between the
mortgagor and mortgagee on October 2, 1914, whereby the
dependant covenants to pay the sum of $8,000 with interest
from October 1, 1914.
Land Sold for Taxes
"The defendant in the mortgage covenants that he
pay all taxes levied against the said lands and in default
of his doing so the mortgagee might pay all taxes and same,
with interest, should become a part of the money secured
under the mortgage. The mortgagor did not pay the taxes
and the lands in question were sold by the city of Edmon-
ton for arrears of taxes, amounting to $2,219. At the sale
by the city of these lands, for arrears of taxes, the mort-
gagee purchased the lands for the said sum of $2,219 and
became the registered owner thereof and has since paid
the taxes assessed against the said lands.
"The (chief) questions submitted on the stated case
are: Has the plaintiff a right to sue the defendant upon
the personal covenant contained in the said mortgage and
extension agreement, or is the plaintiff precluded from
suing on the said covenant? If successful in obtaining
judgment on the said covenant is the plaintiff entitled to
issue execution? Is it necessary for the plaintiff to fore-
close the said mortgage and to exhaust its remedies against
the said lands before suing on the said covenant and is the
defendant entitled to have the value of the said lands de-
ducted from the amount claimed by the plaintiff herein?
Mortgage Extinguished by Sale
"Counsel for the plaintiff mortgagee claims under sub-
sec. 16(a) of sec. 1, 10 Geo. V. 1920, ch. 3, that the Court
should order that the mortgagee may proceed vfith his ac-
tion upon the covenant without his instituting or carrying
on proceedings by way of foreclosure or otherwise for the
sale of the lands under the directions of the Court, in view
of the fact that the lands have now become vested, so far
as the legal ownership is concerned, in the plaintiff mort-
gagee who is ready, and willing and able to transfer the
same to the defendant if the debt secured by the mortgage
is paid off under the plaintiff's proceedings by way of
execution or otherwise. In my view sec. 63 of the Ed-
monton Charter must be considered, as such section pro-
vides that such a transfer under tax sale as occurred in
this instance shall not only vest in the purchaser or his
assigns all rights of property which the original holder had
therein, but shall also purge and disencumber such land
from all payments, charges, liens, mortgages and encum-
brances of whatever nature and kind other than existing
liens of the city or Crown. I am unable to give any other
effect to that section than the declared intention thereof
which seems to be this, that the mortgage, so far as it is
a charge against the land, is extinguished and that any
attempt to bring the land itself into the proceedings
would manifestly be destroyed by the effect of said sec. 63.
REGISTRATION OF GENERAL TRADEMARK
Proprietors of "Cutex" Goods Permitted to Register the
Brand in Canada — Limitations Regarding Specified Lines
IN a recent petition by the Northam Warren Corporation
to the Exchequer Court of Canada, in regard to the
registration of the word "Cutex" as a general trademark.
Justice Audette held that a general trademark may be re-
gistered with a limitation to exclude certain classes of
goods for which a specific trademark not absolutely similar
has been registered.
In explanation, His Lordship says: "This is an ap-
plication to register as a general trademark the word
"Cutex" to be used more especially in connection with
manicure and toilet prepai'ations, w^hich are manufactured
and sold by the petitioners.
"This application for registration was refused by the
Minister of Trade and Commerce by reason of the exis-
tence on the register of a certain trademark consisting of
the words "Randolph Cuties" registered October 29, 1914
in favor of J. W. Landenberger and Co. of Philadelphia,
Pa., as a specific trademark applied to hosiery and under-
wear and by reason of a further registration of the words
"Cute Brand" registered August 20, 1914, in favor of J.
S. Todd and Son, of Victoria, B.C., as a specific trade-
mark applied to canned salmon.
Consent Secured
"There is further record of a consent by Landenberger
and Co. that if hosiery and underwear are excluded that
the word "Cutex" may be registered as a general trade-
mark in favor of the petitioners. Furthermore, there is
also filed a general consent by J. S. Todd and Son to the
registration of the petitioners' trademark as prayed.
"In the present application to register the word
"Cutex" it may be said that the words "Randolph Cuties"
and the words "Cute Brand" bear some distant resem-
blance to the word "Cutex" but they are not the very same
words and they are not likely to deceive uncautious pur-
chasers because the other words resembling the word
"Cutex" are in both the other trademarks associated and
accompanied by another word when used.
"Therefore I have came to the conclusion to allow the
petitioners to register in their name the word "Cutex" as
their general trademark, limited, however, by excluding
therefrom the use of the said word "Cutex" as applied to
hosieries and underwear as well as to canned salmon."
MINIOTA FARMERS' MUTUAL FIRE
Notwithstanding the fact that the Miniota Farmers'
Mutual Fire Insurance Company did nearly $10,000,000 more
business in 1920 than in 1919, losses increased by only $2,000.
The thirty-foui-th annual statement shows that the com-
pany's assets increased by $162,357 to $731,906, while growth
in business is also illustrated by the following comparisons: —
1920. 1919.
Business in force $40,122,540 $30,870,421
Amount of business written 18,980,028 13,771,169
Increase in amount at risk 9,252,119 5,358,903
Losses paid 54,911 52,970
Total assets 731,906 569,548
Surplus held for members 716,254 549,748
April 29, 1921
THE MONETARY TIMES
illlllllHIIIIIIIIIIIIIIIIIIIIIUIIIIIMIIIIIIIIIIIIIIIIIUIIIIIIIIIUIIIinillllllllinilliilillllUIIIMIIIIIIIUIIIIIIMMIIIIIIMMIIIIIMIIIIIIIMHIIinillUIIIIIIIII^
I CHARTERED ACCOUNTANTS I
TllinilHIIIIIIIIIIIIIIIIIIIinilllllMIIIIIIIIIIIIIIIIIIMIIIIIIMMMMIUMMIIIUHIIUIIIIIIIIIIIIIIIIIIIIIIIUMIIIUUIIIIIMIIIIIUUIIIIIIIIIIIIIIIIIIMIIIIIIIIIIIr.
HENRY BARBER & CO]
Established 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railway Building,
6 King Street West TORONTO
Millar, Macdonald & Co.
Chartered Accountants
Home Bank Building, 428 Main Street
WINNIPEG
Norman B. McLeod
Chartered Accountant
AUDITS INVESTIGATIONS
COST ACCOUNTING
803 Kent Bldg. - TORONTO
Phone MAIN 3914
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I REPRESENTATIVE LEGAL FIRMS \
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CALGARY
Charles F. Adams, K.C.
Bank o( Montreal Bldg.
CALGARY - - ALTA.
LETHBRIDGE, Alta.
Johnstone, Ritchie & Gray
Barristers, Solicitor!, Notariei
LETHBRIDGE ■ Alberta
SASKATOON
C L DuKiE. B.A. B. M. Wakei.ino
DURIE & WAKELING
Solicitors for the Bank of Hamilton. The
Great West Permanent Loan Co. The
Monarch Life Assurance Co.
Canada Building Saskatoon. Canada
W. F. W. Lent. K.C. Ale
LL.B. H I). Mam
LENT, MACKAY & MANN
Barristers. Solicitors. Notaries. Etc.
30.S Grain Exchange HIUb . Calgary, Alberta
Cable Address," Lenjo." Western Union Code
Solicitors for The Standard Bank of Canada.
The Northern Trusts Co.. Associated Mort-
gage Investors, ^-c.
MEDICINE HAT
I. K II l.ilM,
1.1., I!,
J. W. Si-1-i..iiT. H A.
LONG
&
SLEIGHT
Barrister*, etc.
MEDICINE
HAT
ind BROOKS, Alta.
TORONTO
G. W. MORLEY & COMPANY
Barriatera. Soticitora, Etc,
802 Lumsden Building. Toronto
SuUcitors for A. O. Spaldmg it Bros, of Can.,
Ltd.; A. J. Reach Co. of Can., Ltd.; Dominion
Chautauquas, Ltd., etc., etc.
Special attention given to Corporation work
and collections.
Cable Address: ".Morley." Toronto
WRIGHT & WRIGHT
Barriiten, Soliciton, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
MOOSE JAW
EDMONTON
Hon. A. C. Rutherford. K.C, LL.D.
F. C. Jamieson, K.C. Chas. H.Grant
S. H. .VlcCuaig Cecil Rutherford
RUTHERFORD. JAMIESON
& GRANT
Barrister*, Solicitors, Etc.
514-18 McLeod Bldg. Edmonton, Alberta
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barristers. Solicitors. Etc.
Solicitors for Bank of .Montreal. The Trust
and Loan Co. of Canada. British Canadian
Trust Co.. Sc. &c.
C. F P Conybeare. K.C. H. W. Church. .MA.
R. R. Davidson. LL.B.
Lethbridse • Alta.
Grayson, Emerson & McTaggart
Barristers. Etc.
Solicitors— Bank of Montreal
Canadian Bank of Commerce
Moose Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUI1.DING
PRINCE ALBERT. SASK.
VANCOUVER
W, ,1. liowscr. K.C. R. L. Keid, K.C.
D. S. Wallbridge A. H, Douglas J.O.Gibson
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers, Solicitors. Etc.
Soli^itor^ for li;mU of .Montreal (Bank of
Br.tish North America Branch)
Yorkibire Biiildia;, 52SSermoiirSt., Vanconver, B.C.
Your card here would
ensure it being seen by
the principal financial
and commercial interests
in Canada. Ask about
special rates for ihispage.
28
THE MONETARY TIMES
Volume 66
News of Industrial Development in Canada
Many United Kingdom Firms Have Under Consideration the Establishment of Branch
Works Here States Trade Commissioner— Canada's Paper Industry is Meeting With
Strong Competition in the United States— Big Lumber Drives Are Held Up By Strike
of New Brunswick Timber Workers— Packers Strike in Toronto Has Terminated
"/^ REAT BRITAIN will soon be in the world's markets
VX again, with machinery and merchandise of excel-
lent quality and at a competitive price," said F. W.
Field, British Government Trade Commissioner in Ontario,
to a representative of The Monetary Times this week. Mr.
Field has just returned to his post at Toronto from a six
months' visit overseas where he conferred with many
hundreds of manufacturers and merchant firms with re-
gard to the prospects of doing business in Canada. Among
the centres visited by him were Glasgow, Edinburgh, Birm-
ingham, Sheffield, Coventry, Leicester, Nottingham, Lon-
don and Manchester.
"British manufacturers have had to overcome a num-
ber of serious obstacles in their efforts to return to nor-
mal manufacturing conditions," continued Mr. Field. These
problems are the result of the great eflForts made by the
Old Land during the war. Many have been solved and the
industrial machine of! Great Britain is returning to its
accustomed work. Another strong impression I have re-
ceived is the great care taken in the production of goods,
and their excellent quality. This feature has always ap-
pealed strongly to buyers in overseas markets. After
visiting works in the United Kingdom, it may be asserted
with confidence that well-madel and durable articles are
still the pride of our manufacturers.
"A noticeable extension of laboratory work on the part
of United Kingdom manufacturers was observed. Many
of the laboratories seen were of the best and latest type.
The ample tests made by the majority of the United King-
dom manufacturers in industries requiring tests, are one
of the reasons for the excellent material and workmanship,
and, in the case of machinery, effective operation.
"Several manufacturers expressed the opinion that
their costs of production would probably decrease during
1921. This is an important consideration for the overseas
buyer, who for the past two years has received many foreign
quotations considerably lower than those of United King-
dom firms. With reduced production costs in 1921, the
United Kingdom is likely to secure a larger volume of
Canadian trade.
"The use of American labor saving machinery appears
to have been adopted more extensively in our works. In
some cases American foremen have been engaged for a
certain period to teach the English machinists to operate
the machinery. Frequently the English mechanics later
have made valuable improvements to the Amei-ican equip-
ment. Mass production is being carried on extensively in
some works as a result.
"Many United Kingdom firms informed me that they
have under consideration the establishment of branch works
in Canada. In certain lines where the competition in Canada
is too keen, it is probable that United Kingdom firms will
establish branch works in the Dominion. In the majority
of lines, however, the British manufacturer will probably
decide to continue production at home, exporting to the
Dominions and foreign markets. When the present world-
wide depressing conditions disappear, Great Britain viall
be found a stronger industrial nation than before the war."
Europe Entering U.S. Market
Canada's paper industry is facing ever-increasing com-
petition from European countries in the United States
market. This is shown by figures issued by the United
States Department of Commerce. During February last,
Canadian mills sent to the United States a total of 97,-
788,183 pounds of print paper, valued at $6,077,320. This
was a decline of three-quarters of a million dollars in busi-
ness, as compared with the previous month, the figures
for January being 107,843,677 pounds, valued at $6,814,-
216. On the other hand, the paper manufacturers of sev-
eral European countries are credited with a big increase
of business in February over the first month of the year.
Germany has become an active factor in the competition
for the United States market. In February, Germany sold
the United States 11,284,570 pounds of print paper valued
at $661,145, as against 8,122,390 pounds, valued at $515,-
431 in January. Belgian mills are also beginning to send
paper to this market. During 1920 not a pound of Belgian
paper was received, but in January United States pub-
lishers received 325,820 pounds from Belgium, and in Febru-
ary 48,740 pounds. Imports from other countries in Febru-
ary, according to the Department of Commerce figures, were:
From Finland, 634,290 pounds, valued at $54,483; from Nor-
way, 5,715,370 pounds, valued at $382,909; from Sweden, 1,-
386,002 pounds, valued at $88,077; from England, 78,781
pounds valued at $4,727, and from Newfoundland and Labra-
dor 648,812 pounds, valued at $30,724.
Bucke Township Council has ratified the agreement with
H. S. Hennessy, lumberman, of Haileybury, Ont., acting on
behalf of the company which proposes the erection of a
pulp mill north of there, and will submit a by-law to the
ratepayers on May 16. The company agrees to pay on
a $1,500 assessment for the first two years, and after that,
when the plant is erected, $40,000 assessment. The build-
ings are to be completed by August, 1923, and the agree-
ment will run for ten years.
Employees in the Kfenogami and Jonquieres mills of
Price Bros., Ltd., are on strike, and according to avail-
able information, there would appear to be little hope of a
quick settlement. Some 1,200 men are involved, and the
strike has arisen from a dispute over wages.
Operations at the plant of the Fort William Paper
Co. have commenced.
As a result of the strike by the local Timber Workers'
Unions of New Brunswick, lumber companies are leaving
their drives in the streams, thus leaving mills without sup-
plies. Millions of feet of lumber are involved, and the
principal companies to take action are the Miramichi Lum-
ber Co., and the Fraser Companies, Ltd. The Dominion
Pulp mill on the Miramichi River, which was recently taken
over by the Fraser Companies, and which has been closed
down for some time owing to strike by employees, will re-
main closed, even if the workmen accept the terms offered,
because of the condition of the market.
I
Some Hope for Shipbuilding
In the view of Hon. C. C. Ballantyne, minister of marine
and fisheries, there are two hopes for the shipbuilding in-
dustry. The first is that the gi-eat shipbuilding plants of
Canadian Vickers, Ltd., at Maisonneauve, Que., might be
able to ■ tender successfully for the construction of the new
icebreaker, and hei'e the minister hinted that much would
depend on the men's willingness to accept wages of a rea-
sonable character. The second hope is that the rates of
exchange might improve in the near future in such a way
as to make it possible for foreign governments or other
interests to pass orders to Canada for the building of ships,
in which case Canadian shipyards would be able to avail
themselves of the special provision made by legislation last
year for obtaining loans from the government.
The blast furnace, ovmed by the Atikokan Iron Co.
and others. Port Arthur, Ont., has been sold to outside in-
terests. The city, which is a shareholder in the furnace
and property, has ratified a resolution to dispose of the
April 29, 1921
THE MONETARY TIMES
29
The Imperial
Guarantee and Accident
Insurance Compsuiy
of Canada
Head Office, 20 VICTORIA ST., TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $200,000.00
Authorized Capital - - - $1,000,000. 00
Subscribed Capital - - - $1,000,000.00
Government Deposits - $111,000.00
ACCIDENT COY., Omited
Head Office for Canada • Toronto
lyers' Liability, Elev.itor, Contract. Per
Guarantee, Internal Revenue, Sickness, Cour
Teams and ,\utomobile.
AND FIRE INSURANCE
IT PAYS TO INSURE YOUR AUTOMOBILE
WITH
The Canadian Surety Company
Maximum Service.
Minin
Cosl.
CANADIAN STRONG PROGRESSIVE
V»& ■A>i$iJ!'9iMNSBi®<M!l99^!NY
FIRE INSURANCE
AT TARIFF RATES
Good Openings for Live Agents
Palatine Insurance Company
LIMITED
OF LONDON. ENGLAND
Capital Fully Paid • $1,000,000
Fire Premiums, 1919 3,957,650
Total Funds - 6,826,795
Head Office : — Canadian Branch
COMMERCIAL UNION BUILDING, MONTREAL
W. S. JopLiNr., Manager
Toronto Office— 60 KING STREET WEST
Jones & Proctor Bros.. Limitrd, .Agents
THE EMPLOYERS'
LIABILITY ASSURANCE CORPORATION
OF LONDON, ENG. LIMITED
ISSUES
Personal Accident Sickness
Employers' Liability Automobile
Workmen's Compensation Fidelity Guarantee
and Fire Insurance Policies
C. W. I. WOODLAND
General Manager for Canada and Newfoundland
Lewis Building.
MONTRKAL
JOHN JENKINS,
Fire Manager
Temple Bldg.
TORONTO
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I Automobile— 1 92 1 --Season |
I Policies to cover ANY or ALL motoringr risks §
ATTRACTIVE AGENCY CONTRACTS ■
I British Empire Fire Underwriters
I 82-88 King Street East, Toronto
■ Assets Exceed $4,000,000
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Guardian Assurance Company
Limited, of London, England
Established 1821
Capital Subscribed 810.000,000
Capital Paid-up 8 5.000,000
Total Investments Exceed 840.000,000
Head Office for Canada, Guardian Building, Montreal
H. .\\. LAMBEKT. ManaKer. H. K. HARDS. Assistant Manager.
ARMSTRONG & DeWlH, Limited, General Agents
36 TORONTO STREET, TORONTO
THE MONETARY TIMES
Volume 66
plant for $1,000,000. Two huinlrcd thousand dollars is to
be paid by the purchasers within four years and the re-
maining $800,000 at the expiration of the four-year term.
Two months ago the Atikokan Iron Co.'s mine, said to be
one of the biggest producei'S in the district, was disposed
of to Duluth inteiests. It is understood that the furnace
at Port Arthur will be operated in connection with the
mine.
The packers' strike in Toronto is over and the men
who had been out for two weeks and a half have returned
to their respective plants. Separate agreements are being
made between the employers of the respective plants and
their employees, the only substantial change being a re-
duction of V2V2 per cent, in wages.
A new universal plate mill, representing an invest-
ment of $1,500,000, has been installed at the plant of the
Dominion Foundries and Steel, Ltd., Hamilton, Ont., and
operations have commenced. Hitherto, large steel plates
were imported by Ontario.
The new $100,000 plant of the Milton Worsted Yarn
Mills, Milton, Ont., for the manufacture of worsted yarn,
has commenced operations. The property, which was
originally occupied by the Canadian Carpet Co., has been
rebuilt and renovated. Several additions have been made
and a new heating plant and power plant installed. In
addition to the manufacture of worsted yarn a modem
dye-house has been built and equipped with the latest
machinery for the dyeing of yarn and cloth.
Slackness in trade has r.esulted in the closing at
Gananoque, Ont., of the shovel plant of the Ontario Steel
Products' Co., for a month. It is expected that work will
be resumed about May 23.
NEW INCORPORATIONS
Capital for Week Ended April 27 is 813.676,000, Compared
with $14,417,100 Previous Week
Authorized capital of $13,676,000 is represented by com-
panies whose incorporations were reported to The Monetary
Times during the week ended April 27, compared with $14,-
417,100 for the previous week. A comparative summary by
provinces is as follows:
Week ended Week ended
April 20. April 27.
Dominion $ 6,.565,000 $ 4,372,500
Alberta 1,342,000
British Columbia 3,620,000 225,000
Manitoba 905,000
New Brunswick 59,000
Ontario 2,842,500 • 6,803,000
Quebec 425,600 556,000
Saskatchewan 377,500
Totals $14,417,100 $13,676,000
The following is a list of companies recently incorporated
under Dominion charter, with head office and authorized
capital :^ —
Consolidated Milling Corp., Ltd., Toronto, $100,000; Glen
Motors, Ltd., Toronto, $1,000,000; Sainsbm-y, Bros., Ltd., To-
ronto, $50,000; Montreal-New York Transport Co., Ltd.,
Montreal, $50,000; Smarts Brockville Furnaces, Ltd., Brock-
ville, $100,000; National Canned Meats, Ltd., Toronto, $100,-
000; Gormans, Ltd., Edmonton, $250,000; Dominion Bedstead
Co., Ltd., Montreal, $250,000; Hoffman and Co., Ltd., Mont-
real, $50,000; Acme Securities Corp., Ltd., Montreal, $2,500;
Walter E. Robi, Ltd., Calgary, $20,000; Ontario Flms, Ltd.,
Toronto, $20,000; Stephenson Attractions, Ltd., Toronto, $50,-
000; Belgian Industrial Co., Ltd., Montreal, $1,000,000;
National Appraisal Co., Ltd., Toronto, $50,000; Northern
Appraisal and Adjustment, Ltd., Moncton, $50,000; Thompson
Oil Co. of Canada, Ltd., Ottawa, $30,000; Abrams West
Columbia Oil Co., Ltd., Toronto, $1,000,000; Collyer and
Brock, Ltd., Montreal, $100,000; Sanifone Co., Ltd., Calgary,
$50,000; Climax Co., Ltd., Montreal, $50,000.
Provincial Charters
The following is a list of companies recently incorporated
under provincial charter: —
Alberta.— J. E. Lambert Co., Ltd., St. Albert, $20,000;
Alberta Superior Coal Co., Ltd., Drumheller, $50,000; Fort
McMurray Printing Co., Ltd., Fort McMurray, $10,000;
Wingham-High River Wheat and Cattle Co., Ltd., High
River, $500,000; Braemar Co., Ltd., Edmonton, $12,000;
Ardenode Farming Co., Ltd., Calgary, $20,000; American
Dairy Lunch Co., Ltd., Edmonton, $20,000; Alberta Vending
Machine Co., Ltd., Edmonton, $20,000; Minto Sheet Metals,
Ltd., Edmonton, $20,000; Aurora Oil Co., Ltd., Peace River,
$500,000; W. W. North and Co., Ltd., Tofield, $20,000; United
Dominion Petroleum Co., Ltd., Edmonton, $50,000; Central
Drug Co., Ltd., Edmonton, $20,000; Killam and Knop, Ltd.,
Drumheller, $10,000; Harrison Hair Tonic Co., Ltd., Calgary,
$20,000; Azol Chemical Co. of Alberta, Ltd., Rumsey, $20,-
000; Wallace McKenna Co., Ltd., Calgary, $30,000.
British Columbia. — Reliable Electric Co., Ltd., Van-
couver, $10,000; Motor Financial Corp., Ltd., Vancouver,
$50,000; F. J. R. Whitchelo, Ltd., Abbotsford, $20,000; Janitor
Supply House, Ltd., Vancouver, $15,000; Eagle Talc and
Mining Co., Ltd., Victoria, $50,000; Pacific Builders, Ltd.,
Vancouver, $50,000; Crown Millinery Parlors (Vancouver),
Ltd., Victoria, $10,000; Dragan Co., Ltd., Vancouver, $10,000;
Campbell River Drug Co., Ltd., Campbell River, $10,000.
Ontario.— Toronto Vinegar Works, Ltd., Toronto. $300,-
000; Loblaw Groceterias Co., Ltd., Toronto, $600,000; P.
Harvey and Co., Ltd., Windsor, $20,000; Brickley Cheese and
Butter Co., Ltd., Dartford, $5,000; Artists' Supply Co., Ltd.,
Toronto, $40,000; Gentleman Rider, Ltd., Toronto, $40,000;
Cooperage Co. of Canada, Ltd., Toronto, $40,000; General
Financial Corp., Ltd., Toronto, $300,000; Moose River Con-
struction and Development Co., Ltd., Kapuskasing, $100,000;
Canada Securities and Land Corp., Ltd., Toronto, $2,000,000;
Doan Coal Co., Ltd., Toronto, $250,000; Phi Sigma Tau, Ltd.,
Toronto, $40,000; Mayer-Chalmers, Ltd., Sault Ste. Marie,
$75,000; Whyte Paper Co., Ltd., Toronto, $60,000; Waltham
Motors Corp. of Canada, Ltd., Toronto, $1,000,000; Kitchener
Finance Corp., Ltd., Kitchener, $1,000,000; Lundy Products,
Ltd., Toronto, $40,000; Links O'Tay Golf and Country Club,
Ltd., Perth, $40,000; Mclntyre Fax, Ltd., Toronto, $100,000;
Bubbles Beverages, Ltd., Toronto, $40,000; Maple Leaf Stock
Tonic Mills, Ltd., Kitchener, $300,000; Canadian Non-Metallic
Minerals, Ltd., Opeonogo, $40,000; Drummondville Realty Co.,
Ltd., Niagara Falls, $103,000; Britannia Hotel Co., Ltd.,
Toronto, $190,000; Alger Press, Ltd., Oshawa, $40,000.
Quebec. — Craig, Luther and Irvine, Ltd., Montreal, $20,-
000; the P. and C. Co. of Canada, Ltd., Montreal, $20,000;
Levinoff, Chapleau and Cailloux, Ltd., Montreal, $49,000;
Silks Import, Ltd., Montreal, $99,000; Balin Corporations,
Ltd., Montreal, $49,000; Ligue d'Action Francaise, Montreal,
$20,000; Restaurant des Immeubles, Ltd., Shawinigan Falls,
$10,000; Lapointe Automobile, Ltd., Hull, $20,000; Phono-
graph Acoustics, Ltd., Montreal, $250,000; Henry Ross, Ltd.,
Loretteville, $19,000.
Saskatchewan.— Scott-Ellia Co., Ltd., Wilkie, $20,000;
Central Canada Supply Co., Ltd., Moose Jaw, $15,000;
Twentieth Century Manufacturing Co., Ltd., Moose Jaw,
$20,000; Tisdale Supply Co., Ltd., Tisdale, $20,000; Rose-
town Agricultural Fair Association, Rosetown, $25,000;
Zeller and Hughson, Ltd., Shaunavon, $20,000; Fell and Ben-
son, Ltd., Regina, $50,000; Regina Confectioners, Ltd., Re-
gina, $20,000; Building Products and Fuel, Ltd., Saskatoon,
$50,000; New Empress Theatre Co., Ltd., Prince Albert, $50,-
000; A. W. Heise Co., Ltd., Saskatoon, $50,000.
At an extraordinary general meeting of the members of
the Pacific Loan Co., Ltd., held in Vancouver, resolutions
were passed calling for the voluntai-y winding-up of the
affairs of the company, with the appointment of W. H. Baker,
of Vancouver, as liquidator.
April 29, 1921
THE MONETARY TIMES
31
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERA^ INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto " Solid as the Continent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervise
of Agencies.
North American Life Assurance Company
"SOLID AS THE CONTINENT"
HEAD OFFICE TORONTO
Important Features of the Ninth Annual Report
WESTERN LIFE ASSURANCE CO.
HEAD OFFICE - WINNIPEG, MAN.
Assurances, New and Revived ?1,;<08,750.00
Premiums on same 4-I.70.T.25
Assurances in Force 4.233,907.35
Total Premium Income 128,286.67
Policy Reserves 291.969.00
Admitted Assets * 358,667.36
Average Policy 2.306,04
Premium per $1,000 Insurance — Collected in
Cash 30 30
For particulars of a good agency apply to
ADAM REID. Manasing Director WINNIPEG
The Mutual of Canada Day by Day
During the year 1920 the average payments in beneHls of different kinds
to beneficiaries and policyholders amounted to $11,500 for every
working day throughout the year, a total of $3,492.8^0. l-very year
the payments have increased, the total made since the estabhshment of
the company being over thirty-three millions. The funds in hand to
guarantee future payments amount to forty-two millions -so that the
company has cither paid or holds in trust more than S75,00().(K)0. This
total exceeds the premium income by eight millions. These figures show
that the Mutual Life of Canada is making good on all contracts entered
into in past years. It is not only "making good," it is " making better."
for the profits atone actually paid during the years since establishment
amount to eight millions of dollars, a record of economy and service of
which any life office might justly be proud.
The Mutual Life Assurance Co. of Canada
Waterloo
Ontario
"For the man of vision."
Policies which may be adjusted (o meet changed cir-
cumstances. The " Canadian ' Series issued only by
The London Life Insurance Co.
HEAD OFFICE LONDON, CANADA
THE UNITED ASSURANCE COMPANY
Fire, Hail and Automobile Insurance
Branch Officf-MOOSE JAW. Saik. Head Office— CALGARY, Alberta
Insurance Bridges Life's Gap
A wife wlio has been used tu ihc comforts and care of a husband
feels that she in a world of desolation when death claims him.
If he has been one of the provident ones who has protected her
future through life insurance, she knows thai his thoughtful care
has extended beyond the span of his life.
HAVE YOU FAILED?
Bui if he has failed to make this provision her feeling of desola-
tion is actually realized. She faces a cold world alone — forced
to pick up I he burden he has dropped.
Vou do not want your wife in this position do you?
Ail( for personal raUs^giving date of birth.
THE GREAT- WEST LIFE ASSURANCE COMPANY
HEAD OFFICE
>VINNIPEG
The Western Empire
Life Assurance Company
Head Oiiice : 701 Somerset Building, Winnipeg, Man.
Branch Oppicbs
SASKATOON CALGARY EDMONTON VANCOUVER
Northwestern
Mutual
Fire Association
SEATTLE WASH.
Head Office
for Canada
, Hamilton, On
t. Assets ov
er $1,700,000
Writin
g F.re Insura,
ce at Cost
All Pc
licies div
dend paying
and non-assessable. |
NORMAN S.
JONES, M
inagcr F
. J. MAHONY
Ass't Manager |
\0
'^'i^.v'v 1828 s
^ ®1)0 Itttnn -^\.
Fire Insurance Company. Limited, of PARIS. FRANCE
Capital fully subscrihcU. 50% paid up 8 •.',l)(K).000.00
Fire and General Reserve Funds 8,'i70,000.00
Available Balance from Profit and Loss Account SS.891.00
Net premiums in I91>) 8.648.669.00
Total Losses paid toSlst December. 1919 IH.500.000.00
Canadian Branch. 17 St John Street. .Montreal: .Manager for 'Canada,
Maurice Ferrasd. Toronto Offices, J. H. Ewakt. Chief Agent, 18 Wellington
Street East : R. B. Rice & Sons. Toronto Agents, 66 Victoria Street.
THE MONETARY TIMES
News of Municipal Finance
Two More Saskatchewan Municipalities Are in Default— Peterborough's Net Debt Increased
Largely in 1920— Report of P'ernie Reflects an Improvement in the Position of that City-
Edmonton Utilities Show Surplus for First Quarter of this Year— Tax Rates of Three Saskat-
chewan ^Cities— Agreements Between Melville and Bondholders Imposes Severe Conditions
SEVERE conditions will be imposed upon the town of
Melville, Saskatchewan, by an agreement with the bond-
holders. There has been very little expression of opinion
by the ratepayers as yet, and until a public meeting is held
the approval or disapproval of the agreement will not be
known. It is understood that the town council has the privi-
lege of making changes in the E.greement submitting same
to the bondholders for approval, and it is altogether likely that
several changes will be submitted for the bondholders' ap-
proval. The main points in the agreement are as follows: —
On or before the first day of July, 1921, the town shall
issue its debentures to amount covering principal, interest
in arrears, with interest on such arrears to the said first
day of July, 1921. The said debentures shall be dated as of
the first day of July, 1921, bearing interest at 6 per cent.,
payable in fifteen equal annual instalments of principal and
interest on the first day of July in each of the years 1922
to 1936, inclusive.
Bet\veen the first day of July, 1921, and the thirty-first
day of December, 1921, the town shall issue debentures to
take care of principal and interest falling due in said period.
The said debentures shall be severally issued and dated as
of the date on which the said instalments of principal and
interest severally become due, shall bear interest at 6 per
cent., payable in fifteen equal annual instalments of principal
and interest on the first day of July, in each of the years,
1922 to 1936.
The debentures of the town to be from time to time
issued pursuant to this agreement, shall be exchanged for
and accepted in full satisfaction of the unpaid debentures
and coupons maturing on or before the thirty-first day of
December, 1921. The exchange of the said debentures in
satisfaction for debentures in arrears or maturing before the
thirty-first day of December, 1921, as aforesaid, is condi-
tional upon the town carrying out the following terms and
conditions.
Fifty-Five Mill Rate
The town will impose and levy in the year 1921, a tax
rate of at least fifty-five mills and will impose a sanitation
tax of five dollars ($5) per annum on every householder
with a proportionately higher sanitation tax in respect of
hotels or other premises larger than domestic residences.
Subsequent to the year 1921, the town will impose and levy
a tax sufficient to provide funds necessary to pay all debts
of the town whether for operation, running expenses, prin-
cipal or interest falling due within the year after making
due allowance for the cost of collection for the abatement
of taxes and for taxes that may not be collected, make the
hospital in the town self-supporting, or dispose of wagons
other than chemical engine used for fire protection purposes
and discharge teamster now employed, limit the fire protec-
tion apparatus to a chemical fire engine to-be operated by
the janitor of the town hall, increase the rates of domestic
users of electric light and power to twenty cents per kilowatt
hour, reasonably increase the rates for electric power, pro-
vided that if the town is able to make any substantial re-
duction in the cost of operating its power plant, it may pro-
portionally reduce the rates for electric light and power, close
and cease to operate the town skating rink, unless the same
can be made self-sustaining, cancel real estate subdivisions
on which taxes are in arrears, and apply for special legisla-
tion to enable it to sell such lands. All moneys collected
from taxes imposed after the first day of January, 1922, in
respect of debenture principal, interest or sinking fund, shall
be set aside and held in a special debenture trust account,
and shall not be used for any purpose other than the pay-
ment of principal, sinking fund, or interest on the town's
debenture.
Comparative Tax Rates
Commissioner George D. Mackie, of Moose Jaw, has pre-
pared an interesting table showing the tax rates of the
three principal Saskatchewan cities for 1921 and 1920, and
the tax rate per head, basing the latter figure upon a popu-
lation for Regina of 40,000, a population for Saskatoon of
28,000 and a population of Moose Jaw of 23,000. The statis-
tics which Mr. Mackie has compiled can be summarized as
follows: — ■
Levy for 1921. Levy for 1920.
Regina $1,992,469 $1,740,783
Saskatoon 1,411,281 1,318,168
Moose Jaw 1,096,859 1,017,806
Mill rate. Tax per head.
1921. 1920. 1921. 1920.
Regina 43.00 37.00 50.86 43.51
Saskatoon . . . 46.55 40.40 50.38 47.07
Moose Jaw . . . 46.00 41.60 • 47.66 44.24
Nanaimo, B.C — A three-mill increase is shown in the
48-mill tax rate for 1920.
St. Mary's, Ont. — The tax rate for 1921 has been fixed
at 39 V2 mills on the dollar.
Walkerville, Ont. — At the same level as in 1920, the tax
rate has been struck at 32 mills on the dollar.
Melville, Sask. — The tax rate has been set at 57 mills on
the dollar, as compared with 53 mills previously.
Calgary, Alta A tax rate of 49.90 mills on the dollar
has been set by the city commissioners, as compared with
45.75 mills last year.
Oak Bay, B.C. — A tax rate of 31.25 mills has been struck,
as against 25 mills last year. The taxable land within the
municipality last year was $5,138,087, while this year the
assessment is $4,183,531.
Windsor, Ont.— Total assessment is $45,000,000 for ordin-
ary purposes and $47,000,000 for school support. This yea^r
one mill raises $45,000, as compared with $32,000 last year.
The total amount of money which will be raised this year
is $1,284,000, as compared with $1,124,000 in 1920.
Winnipeg, Man. — Realty has arrears outstanding April
1, amounting to $3,598,519, according to a comparative
statement issued by H. R. Pattinson, city tax collector. The
arrears are comprised of: $560,502 for 1918 or prior; $194,-
325 for 1919; and $2,090 for 1920. Payments from the first
of the year to March 31 amounted to $729,397, reducing the
total of $4,327,917 outstanding January 1 to $3,598,519.
At January 1, 1920, there was $4,486,559 outstanding,
of which $892,488 was paid during the first three months,
leaving $3,594,070 outstanding April 1, 1920.
Edmonton, Alta. — Reports on the quarterly operation
of the utilities show that aJl departments, with the excep-
tion of the street railway had surpluses. The net loss in
the radial branch was $12,386, and $10,000 of that amount
was accounted for by damage claims. Utility surpluses for
the three months were as follows: Electric light, $49,212;
telephone, $16,483; waterworks, $4,489; power plant, $26,441,
making a net surplus of $84,240, as compared with $25,919
in 1920.
The reason for the increase in revenues, states Commis-
sioner Yorath, is that higher rates were in effect for the
first three months this year as compared with last year.
Another point to be remembered is that expenditures have
been reduced this year.
April 29, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
nOUSSERW>OD>^°G>MPANr
INVESTMENT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES.
12 KING ST. EAST
TORONTO
INSURANCE
Promptly effected in all its Branches
FIRE, AUTOMOBILE, ACCIDENT, LIABILITY, Etc.
Intelligent Advisor)^ Service
OSLER, HAMMOND & NANTON
WINNIPEG
Province of Alberta
6% COUPON BONDS
Due April 1, 1936.
PRICE : 97.59 and Interest
To Yield 6.25%.
Harris, Forbes & Company
INCORPORATED
C.P.R. Building 21 St. John Street
TORONTO MONTREAL
A Newspaper Devoted to
Municipal Bonds
"T^HERE is publislied in New ^'ork City a daily
* and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond offering's.
Write for free specimen copies
THE BOND BUYER
67 Pearl Street New York, N.Y.
C. H. BURGESS & CO.
Government and
Municipal Bonds
14 King Street East
Toronto
ACCOUNT BOOKS
LOOSE Leaf Ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
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All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
Foreign Exchange
The Foreign Exchange Situation has created one of
the most attractive speculative opportunities ever
offered to the investing public. As dealers in all
Foreign Government bonds and currencies, v^etake
this occasion to bring the subject to your attention,
in the belief that this wiU be found one of the most
timely and profitable fields of investment.
We invite enquiry from dealers and others.
For Quolaliom apptv to
R. M. HEFFERNAN & CO., Ltd.
Jackson Building, Ottawa
THE MONETARY TIMES
Saskatchewan.— It was reported last week that the North
Battleford School District and the Wilkie School District, both
in Saskatchewan, are in default in coupon payments on their
bonds. As in other instances of a similar character recently
noted, the difficulties arise out of the inability of the munici-
palities in question to collect the taxes outstanding.
Wilkie, with a population of 1,000, has debentures out-
standing amounting to $66,700, a bank debt of $8,000, and an
expenditure last year on school account of $31,882. The
town owes the school district $41,423, which is composed
largely of uncollected taxes. The town's debenture debt
totals $92,031, against which it has capital assets of $105,610,
and uncollected taxes aggregating $59,552.
Noi-th Battleford school district has a debenture debt of
$151,830, and a bank debt of $37,000. As against these obli-
gations the schools have an equity in lands in lieu of taxes, of
$21,183, and taxes due amounting to $75,281.
Fernie, B.C. — An improvement in the city's finances is
shown in the 1920 statement, which has just been issued. The
debenture debt has been reduced from $419,747 to $398,054.
Sinking funds were deposited to the amount of $11,384, bring-
ing the fund up to $113,972, which is $3,515 in excess of the
required amount. At the end of 1919 there was a sinking
fund surplus of $4,937.
At the close of 1919 the corporation showed an overdraft
at the Home Bank of Canada of $26,212 and unpresented
cheques of $3,390, making a total of $29,602, and the close
of 1920, the corporation had a credit balance of $14,716.
Revenue exceeded expenditure by the sum of $19,314,
after providing for a reduction of $8,430 over expenditures on
debentui-e construction account. The school department
kept within its estimates, and showed a surplus of $2,718,
compared with a deficit of $3,289 in 1919, which was pro-
vided for in 1920. Electric light and water departments
both show a surplus of $4,365 and $8,560, respectively,
after providing for fixed charges.
Arrears of taxes and interest were reduced from $24,-
465 as at December 31, 1919, to $14,690 at December 31,
1920, and a decided improvement on previous years.
Government and Municipal Bond Market
British Columbia Sells Securities Payable in the United States— Victory
Bonds Weaker — Ontario Loan Postponed for a Week — Edmonton Will
Consolidate Unsold Debentures Turned Back From Portland in New Issues
THE government and municipal bond market continues
active, with prospects for busier times ahead. Prices
have fallen off slightly, however. The principal event of
the week was the sale of British Columbia bonds, for dis-
posal in the United States. At a price of 100.01, the pro-
vince paid a shade under 6 per cent, for its money, com-
pared with 5.15 per cent., for a similar loan made in January.
It is understood that the Alberta bonds have been fairly
well distributed on a 6.25 per cent, basis, and interest is now
being centered upon the postponed Ontario offering. Vic-
tory bonds continue on the weak side, and during the past
week fractional declines were recorded by most of the issues.
The following figures illustrate the trend of prices: —
Control Close Close Close Close
price. Jan. 26. Mar. 2. Apr. 20. Apr. 27.
1922 .98
1927 97
1937 98
1923 98
19.33 961/2
1924 97
1934 93
Wi
98%
98%
99%
971/2
98%
971/2
99%
991/4
98%
98
971/4
97%
98%
971/4
96%
96%
96%
961/2
95%
93%
93%
The following is
particulars of which
Coming Offerings
a list of debentures offered for sale,
have been given in this or previous
Borrower. Amount. Rate %,
Dufferin R.M., Man. $ 60,000 6
Havelock, Ont 23,420 6
York Tp., Ont 24,130 6
Ford City, Ont 75,000 61/2
Ontario Province . . . 5,000,000 6
Windsor S.S., Ont. . . 225,000 6 1/2
Grand 'Mere, Que. . . 100,000 6
Walkerville, Ont. ... 95,982.35 6
Shawinigan Falls, Q. 138,400 51/2
Saskatoon, Sask 204,000 5 & 6
York Township. Ont. — Tenders will be received until
May 2, 1921, for the purchase of $24,130 6 per cent. 20-in-
stalment public school debentures.
Tenders
Maturity.
close.
30-instal.
Apr. 30
20-years
May 2
20-instal.
May 2
25-years
May 3
Optional
May ?>
.30-instal.
May 9
30-yr. ser.
May 9
Various
May 19
Optional
May 11
Various
May 23
Grand 'Mere, Que. — Tenders will be received until May
9, 1921, for $100,000 6 per cent. 30-year serial bonds of the
school municipality of Grand 'Mere. A. Desilets, secretary-
treasurer.
Walkerville, Ont. — Tenders will be received until May
10, 1921, for the purchase of $60,982.35 6 per cent. 10-instal-
ment debentures a.nd $35,000 6 per cent. 20-instalment deben-
tures. (See advertisement elsewhere in this issue.)
Ontario. — The province has extended the date for which
tenders are to be received on $5,000,000 securities, until May
3. Details will be found in an advertisement elsewhere in
this issue.
Windsor, Ont. — Tenders will be received until May 9,
1921, for the purchase of $225,000 6% per cent. 30-instal-
ment debentures of the Roman Catholic Separate School
Board. D. Gourd, secretE'ry-treasurer, 616 Pierre Ave.,
Windsor.
Dufferin R.M., Man. — Tenders will be received up till
noon April 30, 1921, for the purchase of $60,000 6 per cent.
30-instalment good roads debentures, which are guaranteed
by the province both as to principal and interest. The
original date, which was April 15, was extended.
Shawinigan Falls, Que. — Tenders will be received until
4 p.m.. May 11, 1921, for the purchase of $138,400 51/2 per
cent, debentures. The tenders should mention two prices:
One for 30-year serial debentures, and the other for 5-year
straight-term debentures. A. J. Meunier, secretary-treasurer.
Saskatoon. Sask. — Tenders wiU be received until May
23, 1921, for the purchase of $204,000 5 and 6 per cent, de-
bentures, payable in 15, 20 and 30 years. The 6 per cent,
debentures are dated July 1, 1921, and the 5 per cent, de-
bentures are dated April 1, 1917. (See advertisement else-
where in this issue.)
Debenture Notes
Woodstock, Ont. — Ratepayers have carried a $65,000
hospital by-law.
Peterborough, Ont.— The city has $230,000 bridge de-
bentures and $7,000 local improvement debentures for sale.
St. Boniface, Man. — No bids were received by the muni-
cipality for $273,233 5 a^nd 6 per cent, debentures of various
maturities, and payable in Canada and London, England.
Capreol, Ont. — The Monetary Times is advised that within
the next two or three weeks the town will be putting on the
market an issue of $32,000 20-years 6 per cent, debentures.
April 29, 1921
THE MONETARY TIMES
Compound Your
Victory Bond Interest
On May 1st more than $30,000,000 in
interest will be paid to holders of Victory
Bonds. NX'e suggest that the recipients
put this money to good advantage by
promptly reinvesting it in further Victory
Bonds, or in other high-grade Govern-
ment and Municipal Bonds. We offer a
selection of these bonds, with a wide
choice of maturities, and possessing the
same facilities for prompt and conve-
nient interest collection as do Victory
Bonds. The yield ranges froin6% to 6.80,^^
H'rite for our latat Hit
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
»w^wwMi^».^<wg»ig;
:^
Bonds to Buv
w
SERVICE
or
Bonds to Sell?
In eitner case we shall be pleased
to act for you.
^ ou will find our market informa-
tion authentic and our service in
buying, selling and trading prompt
and efficient.
Are you on our mailing list? If not, you
should be.
Write and we will send you the current num-
her of Investment Items, our monthly
publication.
Royal Securities
^ ^CORPORATION
LIMITED
MONTKHAL
TORONTO HALIFAX ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. Eng.
r-'t Y-tf Yf i' iJ^^M.>A}A)JJAM^Jti^^^^,^:i^^^^^.SSi&M
\V. L. McKlNNON
DEAN H. PETTES
\^e Buy and Sell
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Covcrnmi^nl and Municipal Bonds
McKINNON BUILDING ■:• TORONTO
Telephone Adelaide 3870
Increase the Return
on Your Investments
Send for out circular describing
Howard Smith Paper Mills
Bonds, Jvlnch are being offered
at a ver\i attractive price
R. A. Daly &. Co.
BANK OP TORONTO BUILDING
TORONTO
Re-invest Your
Victory Bond
Interest
Don't let your Victory Bond Interest,
due May 1st, lie idle. . . . Buy more
V ictory Bonds with it or add to your
holdings of other good interest yield-
ing Government or Municipal Bonds.
Telephone or write and we will send
you immediately a list of very desir-
able investments.
W. A. MACKENZIE & CO., Limited
Covcrnmcnt anu Municipal Bonds
Corporation Sccurilies
42 KING STREET WEST
TORONTO - CANADA
36
THE MONETARY TIMES
Volume 66
for public school purposes. Also another issue of $15,500
20-years 6 per cent., for locaJ improvements.
Edmonton, Alta. — Canadian bond houses will be ready
to take up the consolidated issue of debentures which the city
will shortly offer. Representatives of financial houses have
met the city commissioners and clearly indicated that there
should be no difficulties towards a syndicate in Canada
handling the issue. The present plan is to make a consoli-
dated issue covering the unsold debentures turned back by
the trustees of Morris Bros., and what is necessary for
capital expenditures this year. Speaking of the proposal to
offer Edmonton bonds on the Canadian market, Commis-
sioner Yorath stated it was unquestionably the right course
to pursue.
Saskatchewan The following is a list of authorizations
granted by the Local Government Board from April 9 to 16,
1921:—
Schools, S per cent. — Duff, .$12,500 20-years annuity;
Cravon, $14,000 20-years a.nnuity; Moosomin, $6,600 10-
years annuity; Stone Cliff, $3,500 15-years annuity;
Froude, $1,500 10-years annuity; Bayard, $3,500 15-years
annuity; Holbeck, $1,500 15-years annuity; Baliol, $1,500
10-years annuity; Belleville, $800 10-years annuity; Kings-
lyn, $3,800 10-years annuity; Wilton, $4,525 10-years an-
nuity; Dixon, $600 6-years annuity; Prelate, $2,000 5-years
annuity; Osland, $3,500 15-years annuity.
Towns — Saltcoats, $7,000 7 per cent. 15-years annuity,
for concrete sidewalks; Unity, $5,000 7^/i per cent. 15-years
annuity, for electric lights; Milestone, $12,000 7 per cent.
15-years annuity, for town hall.
Bond Sales
Kamloops, B.C. — The city recently sold an issue of $18,-
000 school debentures, bearing interest at 7 per cent, and
maturing in 1936, to local buyers. During the month of July
there will be an offering, probably in the open market, of a
further issue of $35,000 20-year 7 per cent, bonds for the
same purpose.
Essex Border Utilities, Ont. — A. E. Ames and Co. have
purchased $38,209 6V2 per cent. 27-instalment debentures
at 94.76.
British Columbia. — A syndicate, headed by the British-
American Bond Corporation, purchased this week $3,000,000
6 per cent. 5-year bonds, payable in the United States, at
100.01. The securities are being sold across the line at 93.84
to yield 7% per cent.
Miniota R.M., Man. — Edward Brown and Co. have been
awarded $83,500 5% per cent. 20 and 30-instalment deben-
tures, which are guaranteed by the province, at a price of
89.50. Other tenders were: R. C. Matthews and Co., 89.04,
and A. E. Ames and Co., 88.89.
Regina, Sask.— The city has awarded $154,010 6 and 6%
per cent, debentures of various maturities to A. E. Ames
and Co. at 97.14, at which price the city pays about 6.65 per
cent, for its money. R. C. Matthews and Co. bid 94.75, while
Wood, Gundy and Co. bid 93.28.
Glace Bay, N.S. — A block of central school bonds amount-
ing to $25,000 has been disposed of to the A. E. Ames
Co., at 83 and accrued interest. This company has asked a
three weeks option on the remaining block of $65,000 at 83
but suggests that the town sell the bonds for 82% if they
cannot obtain a quick sale at S3.
Saskatchewan. — The following is a list of sales reported
by the Local Government Board from April 9 to 16, 1921: —
Schools— Pleasant Ridge, $1,000 10-years 71/2 per cent,
Nichol, $2,400 10-years 7% per cent.; Western Canada Bond
Corp., Winnipeg. Crocus, $5,600 15-years 8 per cent; Harris,
Read and Co., Regina. Armley, $3,000 15-years 8 per cent.;
H. J. Birkett and Co., Toronto. Midhurst, $5,000 15-years
8 per cent., Dodsland, $2,150 20-years 8 per cent; C. C.
Cross and Co., Regina.
Rural Telephones — West Osage, $1,250 15-years 8 per
cent.; C. O. Cross and Co., Regina. Lakeview, $950 15-years
8 per cent.; R. McLeod, Regina.
Ontario — An issue of $1,340,000 Ontario Hydro-Electric
Power bonds, guaranteed by the province of Ontario, are
being offered by a syndicate headed by Wood, Gundy and
Co., associated with A. E. Ames and Co., Dominion Securities
Corporation and R. C. Matthews and Co. The bonds were
issued a year ago for the purpose of acquiring at that time
the radial lines of Sandwich, Windsor and Amherstburg Rail-
way, and the Windsor and Tecumseh Electric Railway, con-
necting up Windsor with adjoining municipalities. The bonds
are due April 1, 1960, and thus have thirty-nine years to run.
They bear 4% per cent., and are being offered at 76.89 and
accrued interest to yield 6.05 per cent.
INCREASE IN INSURANCE WOULD HELP EXCHANGE
Speaking before the Life Underwriters' Association at
a luncheon in the Mossop Hotel, Toronto, on April 28, J. H.
Gundy, of Wood, Gundy and Co., in outlining the present
financial situation, said that this country's present unfavor-
able financial condition was caused by too much morey in
proportion to her wealth. "If you have a certain anicunt of
wealth, a certain amount of mcney, and ihe money i? sud-
denly increased wi.hout a coiresponding increase in wealth,
then someone has money which ths wealth of tha countary
does not entitle him to have," he said, and explained that
this condition creates extravagant buying and easy, and.
consequently, unnecessary borrowing.
The purchase by the public of unnecessary articles, either
Canadian or foreign-made, was deprecated by the speaker.
On the question of easy loans, he pointed out that in the
United States, a relatively richer country, the interest on
borrowing was greater than here. He instanced the Ontario
Government's project to build a $1,000,000 cement plant as
an example of an unnecessary enterprise resulting fi'om easy
borrowing. "This country at present is capable of producing
more cement than it uses."
Coming to the question of saving, Mr. Gundy compared
the banks with insurance companies. There were banks on
every corner waiting for someone to come and make deposits.
People could place money in their account to-day and draw
it out to-morrow, which was very often the extent to which
they saved. Insurance had the advantage in so far as it en-
couraged systematic saving. "Not many people will save sys-
tematically in banks by making regular deposits, whether
convenient or not," he declared. "The insurance companies,
by collecting in small denominations and investing these
aggregated sums, afforded advantages of investments to
thousands of people throughout the country. If we could
double or treble insurance to-morrow, we would have gone
a long way in making the Canadian dollar worth a dollar in
gold," he concluded.
DOMINION MORTGAGE AND INVESTMENTS
ASSOCIATION
Among the addresses which have been arranged for the
annual meeting of the Dominion Mortgage and Investments
Association, to be held in Winnipeg May 12 and 13, are the
following: "Subordination of Mortgage Securities by Pro-
vincial Legislatures," by G. H. Davis, Winnipeg; "Land
Titles Systems in the West," by D. J. Thom, K.C., Regina;
"Rural Credits in the United States," by E. D. Chassell, sec-
retary of the Farm Mortgage Bankers' Association of
America, Chicago; "Rural Credits in the United States," by
A. E. Parker, Winnipeg; "The Manitoba Farm Loans Asso-
ciation," by W. D. Glendinning, Winnipeg; "Basis of Opera-
tions of Lending Institutions," by V. Evan Gray, Toronto;
"Citizen Co-operation in Government," by Dr. H. L. Brittain.
Senator Blain has introduced a bill in the Senate to in-
corporate the Commonwealth Bank of Canada^, with head-
quarters at Toronto. The capital stock is placed at $10,-
000,000, and the provisional directors are the following:
Charles Gi'ant Anderson, lumbemian, Toronto; Joseph Cleo-
phas La^mothe, attorney, Montreal; John Jacob Arnold, ban-
ker, Boston, Mass.; William Long Baker, banker, Toronto;
and William Hislop Gibson, fruit grower, Newcastle, Ont.
April 29, 1921
THE MONETARY TIMES
37
$25,000
CITY OF HALIFAX, N.S.
S}4% BONDS
Due Jul\) hi. 1953 Denominations, $1,000
Principal and semi-annual interest pay-
able at Toronto. Montreal, Halifax.
Price: 92.85 and accrued interest
YIELDING G%
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX, N.S.
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C. H .\IACAL'LA\-
J. 1'. NICOLLS, No
New Issue
PROVINCE OF ALBERTA
6% BONDS
Due April, 1936
Price 97.39 and interest, to Yield 6'/%
BOND DEPARTMENT
The Canada Trust Co^^pany
14 King St. E. - - - Toronto
J. A. THOMPSON & CO,
Government and Municipal Securities
Western Municipal. School and Saskatchewan Rural Tele-
phone Co. Debentures specialized in.
COl; K HSIH )N DKNCI-; I NVITKI )
Union Bank Building • WINNIPEG
"v ^ Waghorn
Gwynn
& Co.
, Limited
^^ Stock and Bi
■ynd Bro
kers
/ \ Financial 1
nsurance, ar
d Real Es
late Agents
VANCOUVER
A. J. Pattison Jr. & Co.
Specialist. Unlisted Securities
lOe BAY STREET TORONTO
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches-SASKATOON AND CALGARY.
Can.^dian Managers
iNVHSTMfNT CORPORATION OF CANADA. LtD.
London Office: 4 Great Winchester St.. E.C.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank BIdg., Edmonton, Alta.
LOUGHEED & TAYLOR, Limited
IMESTMEXT SECURITIES
210 Eighth Avenue West
CALGARY
ALBERTA
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. \V. MAHAN
President
J. A. WEST.MAN
Managing Dii
Addin<< - Calculating
Machine
Does all Ifinds of figuring
(adds, multiplies, subtracts, divides —
fractions as readily as whole numbers)
It does this rapidly and accur-
ately, with 10 keys. Try it.
United Typewriter Company
Limited
1 35 Victoria Street, Toronto
and all other Canadian cities
38
THE MONETARY TIMES
Volume C6
Corporation Finance
Brandrani-HendersoH Had Lower Profits -Consolidated Rubber Company Experienced Favorable Year
— Nipissing Results Were Disappointing— Monarch Knitting Company Suffered a Drop in Net
Earnings— No Bonus Was Paid— Canadian Fairbanks-Morse Did Not Escape the Effects of Depression
Canadian Fairbanks-Morse Co., Ltd. — Operations of the
company in 1920, resulted in profits of $279,562, as against
S(;2.5,149 a year ago, and $1,310,597 two years ago. In 1919
profits fell 52.-S per cent, from the previous year's high record
total, E'nd the 1920 profits are 55.3 per cent, lower than 1919.
After all deductions net earnings on the common stock were
.^s:i,:!47, or equal to $1.06 on the 84,327 no-par-value common
shares, against $442,069 in 1919, or equal to 27.63 per cent,
on the 16,000 par value $100 shares then outstanding.
The balance sheet reflected the changed position through
two years of declining profits; b&nk loans were increased
about $1,000,000 to $1,550,000, accounts payable by over
.$300,000 to $1,696,594, while the cash item is lower by about
.'<320,000 to $78,379, investments In g6vernment and munici-
pal bonds, etc., which amounted to $818,389 in 1919, were
reduced to $.39,917 last year, and inventories were increased
by $1,300,000 to $3,880,484. In property and equipment ac-
count, land and buildings are valued at $1,255,965, against
,'<991,872 in 1919. Total assets increased about $1,300,000 to
$9,455,059.
Xipissing Mines Co., Ltd. — The totdl net profit for the
yea.r was $1,279,091, compared with $2,717,312 in 1919, which
was the largest in the history of the company. There was
paid to stockholders $1,800,000, unchanged from the previous
two years, and the surplus is now $3,817,043, compared with
$4,372,952 at the end of the previous year.
E. P. Earle, the president of the company, in his repoi-t
to the shareholders, said that by comparison with those of
recent years, the results of operation were disappointing.
"The year's exploration and development work was, unfor-
tunately, not productive of satisfactory results," adds Mr.
Earle, "and in consequence the reserves now stand at 3,568,-
000 ounces as against 6,354,000 ounces a year E.go.
"It is of course evident that unless future prospecting
develops additional ore^ and the price of silver improves,
the earnings of your operating company will continue com-
paratively unsatisfactory. Your management, halving these
facts in mind, is constantly seeking properties that appear
to have value, and with this policy in view, it is gratifying
that it has been possible to build up the large surplus now
on ha^nd."
Detailed statements show that the Nipissing Mines Co.,
the holding corporation, received a total revenue of $1,845,158.
almost entirely from .the operating company, and disbursed
$1,800,000 in dividends, leaving, after administrative ex-
penses, a balance of $10,218. Dividends from the formation
of the original company in 1906 to the end of 1920, have
reached the immense total of 379 per cent., or $22,740,000.
Total shipments since 1904 have reached the value of $38,-
349,499.
Monarch Knitting Co., Ltd. — A big drop in net profits is
reported by the company for 1920. The usual dividends
were paid, but the bonus of 2 per cent., disbursed in the
previous year, did not follow. Earnings applicable to com-
mon stock were 10.2 per cent., against 25.8. The balance
carried forward is $79,905, compared with $253,311.
President F. R. Lalor and general manager J. A. Burns
point out that "the conservative policy adopted by your
board of directors some years ago in building up substan-
tial reserves which they at that time felt were necessary
for future success has enabled us to maintain our strong-
financial position and to have increased our reserves to over
$1,000,000, after making our usual charges for depreciation,
and valuing our inventories at prevailing market prices.
The period of readjustment through which we are passing
has demonstrated the necessity for some reasonable taa'iff
regulations which will protect the textile and knit-goods
industry in Canada against the dumping of distressed mer-
chandise from other countries in times of business depres-
sion. We are looking forward with confidence to the future."
The following table gives several important items from
the financial statement, with comparisons: —
1920. 1919.
Net profits $ 183,405 .$ 386,686
Paid on common 51,000 76,500
Balance profit and loss 1,005,123 925,217
Inventories 1,154,026 459,121
Bank loans 606,000 9,617
Current assets 1,717,165 1,251,214
Current liabilities 1,074,364 433,937
The company's American subsidiary, the Monarch Knit-
ting Co., Ltd., of New York, reports a net loss for the year
of $86,279, compared with a net profit of $50,248 in 1919.
Canadian Consolidated Rubber Co. — At the annual meet-
ing of the company in Montreal this week, the financial
statement for 1920 was presented and a-pproved. The state-
ment is a good one, covering as it does a year in which busi-
ness depression has been prominent. Net sales during the
year amounted to $26,675,513, a large increase, and com-
paring with $22,162,978 in 1919 and $18,785,640 in 1918.
After deducting all expenses, including cost of goods, selling
and general depreciation, interest and provision for debts,
etc., operating income amounted to $1,287,167, as compared
with last year's $1,751,507 and $1,604,851 in 1918. Taking
off preferred dividends, surplus remained at $1,077,167,
against $1,541,512 in 1919 and $1,394,862 in 1918, and with
addition of previous balance at this account profit and loss
(Conthiiied on page i.2)
UNLISTED SECURITIES
Aita. Pac. Grain — com.
" " pref.
Belding, Paul com
BrandramHenderson pf.
British Amer. Assurance
British American Oil...
Burns, p. 1st MtRe. 6's..
Can. Furnituri; pref.
Can. Machinery. .. . pref.
6's.
Canada .Mortgage
Can. Oil com.
Can. Salt 6's.
Can. Westinghouse
Can. Woollens pref.
Cockshutt Plow pref. 7%
CoUingwoodShipb'dg.e's
Crnwn Life Insurance...
Cuban Can. Sugar.
Davies William ....
Dominion Fire
Pom. Iron SSteelSs 1939
Dom. Power com
pref.
DunlopTire pref.
Eastern Car 6's,
Eastern Theatres, .com.
Famous Players . . . .pref.
oodyear Tire....7% pfa.
5Abatt
Bank..
Imperial Oil.
King Edward
Bid
Ask
4
6
94
99
4,?
67
70.75
•28
32
88
90
86
92
85
11., SO
14
80
48
54
89
95
9S.50
101
107
112.50
65
70
IS
80
4
5.50
66
Manufacturers Life
Massey-HarriK ....
Matta«ami Pulp pref.
Merchants Fire
Mexican Nor. Power. .S's
Morrow Screw 6's
Murray-Kay pref
National Life.
Neilson. VVm 6's.
North StarOil pref,
Nova Scotia Steel6%deb
Ont. Pulp 6*s
Proviociale Bank
People's Loan & Savings
Riordon. .com. (newstlt.)
..pref. (new stk.)
R. Simpson.. pfd.
SouthernCan.Pow.com.
Bid
Ask
170
200
94
71
36
7
10. .50
83
90
59
66
ISO
86.50
3.40
3.50
75
SO
87
92
122
80
5
7
39
42
76
82
22
•24.50
St. Lawrence Sugar-. 6's.
Sterling Bank
Sterling Coal com.
Toronto Carpet com.
Toronto Paper 6's.
Toronto Power. S's (1924)
Trust &Guar
United Cigar Storescom.
.pref.
Western Assurance
Western Grocers. . .pref.
Whalen Pulp com.
April 29, 1921
THE MONETARY TIMES
WE OFFER
Alberta Municipal District
AND
Rural School Bonds
Maturing serially in 10 to 20 vcars.
To yield 7i% to 8%
W. Ross Alger & Company
INVESTMENT BANKERS
Royal Bank Chambers Bank of Toronto Bids-
CALGARY EDMONTON
CANADA SECURITY
ASSURANCE COMPANY
GUARANl EED BY
Norrvich Union Fire Insurance Society) Ltd.
Fire - Hail - Automobile
Assets Exceed $125,000,000
Offices For West
CALGARY, Alta. WINNIPEG, Man.
The Bond House of British Columbia
WE ARE IN THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
Oil Leases in Northern Alberta
WKITl-;
JOHN S. LEITCH
605 Electric Railway Chambe
WINNIPEG. Manitoba
w
E have 450 good businesses for sale in the central
portion of Alberta. Everything from a General
Store to a small Confectionery
If you want a business in Alberta you want us.
WHYTE & CO., LIMITED
111 Pantases Buildi
Edmonton, Alberta
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cable Address, Tope
rn Ln. and .A. B.C.. Sth Edition
CALGARY, CANADA
DEBENTURES FOR SALE
$5,000,000.00 PROVINCE OF ONTARIO 15-YEAR
6^r BONDS
The Government of the Province of Ontario will receive
alternative tenders up to 12 o'clock noon, on Tuesday, May
3rd, 1921, for the following:
1st. $5,000,000 Province of Ontario G':',, Bonds, dated
2nd May, 1921, due 2nd May, 1936, bearing interest at the
rate of 6% per annum, payr..ble half-yearly on the 2nd days
of May and November, principal and interest payable in
gold coin of lawful money of Canada, at the office of the
Treasurer of Ontario, Toronto, or at the Bank of Montrea'l,
Montreal, Ca^nada, at the holder's option, or
2nd. $5,000,000 Province of Ontario G7r six months
Treasury Bills, with interest, dated 2nd May, 1921, payable
six months therefrom on the 2nd day of November, 1921,
principal and interest pay&ble at the office of the Treasurer
of Ontario, Toronto, oi- at the Bank of Montreal, Montreal,
Canada, at holder'.s option.
Bonds to be in the denomination of $1,000 each, with
coupons attached, and may be registered as to principal only.
If Treasury Bills are issued, they will be in the denomination
of $1,000 or larger. Payment for Bonds or Treasury Bills
and issue thereof to be made at the office of the Treasurer
of Ontario, Parliament Buildings, Toronto, on or before the
13th May, 1921, less the amount of the deposit. If Bonds
are sold interim debentures will be supplied on payment of
money, to be exchanged for definitive bonds on completion
by the engravers.
Sealed tenders, endorsed tenders for Province of Ontario
debentures, should be addressed to the Honorable P. Smith,
Treasurer of Ontario, Parliament Buildings, Toronto.
Tenders must be for the whole amount offered a.nd must
be accompanied by marked cheque for $50,000, to be applied
in the case of the successful tenderer as part payment for
Bonds or Treasury Bills. The highest or any tender not
necessarily accepted.
P. SMITH,
Treasurer of Ontario.
Toronto,, 22nd April, 1921. .533
The head office of the Wellington Finance Corporation,
Ltd., is to be moved from Toronto to Guelph, Ont.
THE MONETARY TIMES
Volume 66
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
MOXTKEAL— Moek Kiitlfd Apr. »:Ui.
(Figures supplied by Bl'UNKn' A Cti.. nitMMl»«i-s MoiitreiU St<
Slocks
Sales Open High Low Close
AbitibiP.SP
•■ ptd,
Asbestos Corp
pfd
Ames-Holdcn pfd
Atlantic Sugar
Bell Telephone
Brazilian T.L.&Powei
B.C. Fish
Brompton Pulp & P. . .
Canada Cement
•■ ...pfd,
CanadianCar
'■ ptd,
Can- Con
Can. Cottons
•■ pfd.
Canadian Gen. Blec.
Can. Steamship
■■ ■• pfd
" " Deb
" " — Vot. Trust
Con. Mining & Smel. . .
Det Rys
Dom. Canners
Dominion Bridge
Dom. Coal pfd.
Oom. Iron pfd.
Dominion Glass..
■■ ...pfd.
Dom . Steel Corp
..pfd.
Dominion Textile
Hillcrest pfd.
Howard Smith
Holt Renfrew
Illinois Tract.- pfd.
Kaministiquia
Lake of the Woods..
Laurentide
Lyall
Macdonald Co
Montreal Power
" ..Deb.
Telegraph...
National Breweries —
Ontario Steel
OgiK.ie -
pfd.
Penmans
Price Bros
Quebec Ry. L. H.&P..
Biordan Pulp & P
•• ..pfd.
Scotia pfd.
Shawinigan W.&P...
St. Maurice
Sher.-Wms
•■ pfd.
St. Lawrence
Spanish River
" pfd.
Steel Co. of Canada...
•■ " •• pfd.
TooUe Bros
Toronto Ry
Twin City
Wabasso
Wayagamack P. &P..
Winnipeg Ry
Woods .Mfg. Co. ...pfd.
Ranks
Commerce
Hamilton
Hochelaga
Merchants
Molsons
Montreal
Nationale
Nova Scotia
Royal
Standard
Toronto
Union
ISJ
Roml.s
Asbestos Corp l-
Bell Telephone Co
Can. Cement
Can.Conv
Can. Cottons
Can. Rubber
Cedars Rapids Mfg....
City Mont. Dec. 6-s, 1922
•• .May6's.l923
•' Sept.6's.l923'|
Dom. Can.W.Loan.l925
1931
19371
Victory Bonds. 1924...
1934....
•' . 1922....
1927....
1937....
1923...
1933...
300
7218
11114
1 1902
209S1
51415
41452
3382
16987
35105
27665
MONTKBAL— ConUnued.
96|
9.5J
94i
923
96i
ICuudK
T. Cottons
Dom. Iron
1. Steel
Dom. Textile
L;ikeof Woods
.Mont. Tramways ...
National Breweries .
Ogilvie Flour
ario Steel
Bn
Quebec Ry.L.H.&P..
Kiordon
Scotia
Sherwin-Williams
Steel of Can
Wabai-so Cotton
Wayagamack P. &P..
High Low Close
TORONTO— Week Ended Apr. 'J7tb.
Bell Telephone
Brazilian Traction.
B C. Fish
Burt. F. N
. Bread
Canada Cement.
Canners
Con. Gas
Coniagas .. .
Dome
Dom. Iron.
Dom. Tel....
Uuluth
Mackay Con
Maple Leaf
Monarch pfd.
N.S. Car
•• pfd.
N.S. Steel
Nipissing
Porto Rico
■• pfd.
Quebec R.L.H. & P
Riordon
Rogers
Russell pfd.
Salesbook ptd.
Spanish River
..pfd.
Steel Corp
Steel Company
....pfd.
Toronto Ry
^ thewey
Twin City
Winnipeg Elec
Sales Open High L
Raiik.*(
Imperial
Merchants
Montreal
Nova Scotia
Royal
Standard
Toronto
Union
Loan and Trust
Col.Inv
Can. Land.
Can. Perm.
Ont. Loan
National Trust
Toronto Mtg
Toronto Gen. Trusts.,
Union Trust
IConds
Can. Bread
Canners
Dom. Iron
Blec. Dev.
Loco
Penmans
TOKOSTO— Continued
20 li
IVar Loans
n.Can.W.Loan.l92S
1931
1937
:ory Loan 1922
1923
1927
1937
1933
1924
1934
Sales Open High Low ! Close
12600
I6B00
68400
117300
64650
33650
84650
200550
37850
l6k35C
WIIKNIPECi— Week ended Apr, a.ird.
Victory Loan 1922..
" 1923..
" 1924..
'■ 1927..
'• 1937..
•' 1933..
" 1934.
War Loan 1925
■■ 1931....
" 1937....
Great West Perm..
20000
5650
5000
8300
5900
9800
22200
High Low I Close
985
92j
92*
'sir
NEW YORK— Week ended Apr. -iSnl.
Canadian Pacific
Canada Southern
Nova Scotia S.&Coal.
Granby Consolidated . .
Rouds
Dom. of Can. 5% 1921
5*% 1921
5% 1926
■• " " 5§% 1929
5% 1931
Ontario Silver Mining.
Sales
22000
9000O
42000
62000
56000
Open
llOi
High
I12i
' ssj'
LOXBOM, Eng.— Week ended Apr. 91b.
Uov't. A Mun.
Sales Open High Low Close
Alberta 4i%
B.C. 4»%
Canada.. 34% 1930-50..
•■ ....3% Reg...
" .... 4% 1940-60
" .... 4% 1920-25
Calgary 4 J% deb
Edmonton 5% bds. 23-53
.5% debs
.Manitoba 4 .. deb. 1928.
Montreal 3% deb
4i% Reg
4% cons. deb.
Nova Scotia 3i%
Ontario 4i% Reg
Quebec 4 J%
4% deb
34% cons. Reg.
Toronto 4% bds
3J% 1929
Vanc'ver 4% cons. "50-2
Victoria 4% cons
3% cons....
34% 1923...
34% 1929-49
44% deb. -20-25
" 54% cons....
Winnipeg 44% 1943-63
4% cons...
ICallways
Can. Nor. 4% deb
■■ •• 4%cons.deb.
" Pac.4%deb.
Can. Pac
" 4% deb.
" 4% pfd.
G.T.P. Br. 4% bd. 1939.
G.T.P.4%deb
G.T.P. 4% 1955
Gr. Trunk 4% guar.
Gr. Trunk5% 1st. pfd..
" nk 5% 2nd pfd..
nk4%3rd pfd..
Gr. Trunk J
Gr. Tr. West. 5% deb.
Ont. & Quebec 5% deb
P. Gt.East.44%deb.'42
lud.. Fin., Etc.
Can. Car 6% bds
Can. West Lumber 5%
Can. Gen. Elec
Toronto Pow. 44% deb
Van. Pow. 44% gr. deb
Can. Bk. of Commerce
Bank Montreal
4li
46i
724
143 J
65i
604
994
56i
1234
April 29, 1921
THE MONETARY TIMES
Corporation of the District of Burnaby
Balance Sheet as at December 31st, 1920
Current- ASS
>ETS
$
$ 6,624.42
117.85
25,721.86
11.847.66
15,525.60
9,741.82
3,639.54
1,005.94
73,218.75
5,657.93
339.883.08
21,920.54
10,805.15
ASSETS f(
Brouirht forward
1016 Tax Sale Surplus Account. $
1917 Tax Sale Account
1918 Tax Sale Account
1919 Tax Sale Account
1920 Tax Sale Account
-Oiitiinicd)
147.03
692.30
841.25
845.26
2,040.91
17,248.10
2.098.06
36,187.96
3,602.61
61.90
102.06
1,838.51
1,133.16
122.81
176.42
69.715.56
42,506.42
25,376.18
$4,046.38».60
Cash in Royal Bank of Canada:
Debenture Interest Account . . .
Serial Bond Interest Account. .
Temporary Debenture Interest
Contractors Deposit Reserve
School Board. Ordinary Account
School Board, Extraordinary
Account
Burnaby & Westr. Sewerage
Kingsway Guarantee Account.
Kingsway Creditors Suspense
Sundry Debtors —
Open Account $ 7.692.36
$
3,465.77
2,192.16
Less Reserve 4,226.69
Workmen's Compensation Medic-
Water Rates
Temporary Debenture Interest
Taxes-
Arrears $ 79,285.73
i
136,998.75
208.884.33
Better Housing Debenture Ac-
Better Housing Deposit Account
Better HousinB Loans Account. .
Re-survey 8,255.24
Ta.x Sale Certificates, 1920
Investments;
Burnaby & Westr. Sewerage
Account $
Kingsway Guarantee Account..
30,506.42
12.000.00
. S
Plant and Stock-
10,691.31
236.72
10,992.51
Sundry Debtors :
Better' Housing Loans
Total Trust Assets
LIABILl
Current-
Royal Bank of Canada
Loan Account S 186.708.26
Royal Bank of Canada
Wanes Account . . 41.13
$
Sundry Creditors :
Open Accounts ... S 7.717.85
Re-8urvey Account. 5,976.54
I nn e! -t<-d Deben-
ture Coupons . . H7.8B
Up-,-, r -cd Serial
Bond Coupons .. 25,721.86
Unpresented Tem-
porary Bond
Coupons 12,042.66
School Board Or-
dinary Account . 9.741.82
School Board Ex-
traordinary Ac-
Equipment —
S
6.81.5.17
149.53
467.85
1,936.58
876.21
659.81
TIES
186,749.39
64,968.12
251,707.51
200,783.88
137.698.16
$4,183,983.66
i
Total Current Asset)
Capital-
Cash in Royal Bank of Canada : .
Road Loan By-Law 101 Acct...
Lands at Cost:
.School Sites
$
185.684.24
14,431.43
11,699.52
16,066.74
S 452,491.39
950.12
227,881.93
127,044.42
,5-<3.14>5.61
64.587.75
?2.647.734.36
142.756.29
503.403.46
Buildings ;
Public Schools and Office
Municipal Hall
i
101,278.84
18,804.47
3,432.48
8,628.63
Municipal Works:
Sidewalks 131.410.72
$1
%
s
$
.286,272.42
706,151.55
234,846.17
S2
70,921.13
6,333.38
9,652.88
327,216.63
31.07.S89
74.807.89
$
Sewerage 85.720.47
Burnaby Lake Imp. 3.6S7.27
1.-I**-
Surplus of Current Assets over
Current
Pipe lines, reser-
voirs, etc $ 696.894.0B
Sundry Wells .... 4,891.41
Rights 4.366.09
Capital-
Capital Indebtedness :
Debenture Bonds $1
■5 462.491.39
287.1.i0.00
870,000.00
,157,150.00
425,996.61
64,587.76
Ca.sh, Rovnl Bank
Canada $ 87.695.30
Bond Investments. 113.908.74
MortEBKe Loans .. 11,450.00
Total Capital Liabilities...
Surplus of Capital Assets and Sink-
\n". Fund over Capital Liabilities
.\dd Nominal Assets as per Contra.
Finance —
Temporary Indebtedness :
Debenture Bonds Maturing
Surplus of Finance Assets over
S2
$2,647,734.36
Properties 16.792.13
Total Capital Assets and SinkinE
25.146.21
19,000.00
371,000.00
575,159.75
44,146.21
93,451.95
Nominal Assets —
Discount on Bonds, etc
Deduct Premium on Bonds
Finance —
Temporary Tndebtness :
Cash in Royal Bank of Canada.
Trust-
Tax Sale Funds $ 6.730.79
Tax Sale Surplus 1916. . . . 147.03
Tax Receipts awaiting
adjustment 17.068.19
Contractors' Deposits . . . 739.90
Sub-division Roads 249.63
Better Housing Deposits. 122.81
Workmen's Compensation
Medical Aid 87.86
S 946,1.59.75
Lands Acquired at Tax Sale...
Debentures —
Better Housing Account
Total Finance Assets . .
2.163.23
415.99
946,159.75
Trust-
Cash in Royal Bank of Canada :
1912 Tax Sale .\ccount
s
Surplus of Trust Assets over Trust Lis
bilities...
S 137.598.16
1916 Tax Sale Account
Carried forward
$4,046.38.5.50
54.183,983.66
THE MONETARY TIMES
CORPORATION FINANCE
(Continued from page US)
carry-forward totalled $8,319,475, aga-inst $7,242,308 in 1919
and !f!r),700,79() in 1918.
The president in his report states that net sales were
20 per cent, above a year ago and higher than any previous
year. Inventories of manufactured goods and materials have
been taken at cost where cost was below the market and at
market where market was below cost. Expenditures on
plant practically complete the new construction which was
laid out in 1920, and it is felt there will be no necessity for
additional e.xpansion of fixed properties for some time to
come. There h&s been a reduced demand for the products
during the past few months, due to general business con-
ditions. The company is in excellent condition, and results
for 1921 should be satisfactory.
Working capital position of the company shows further
betterment, net working capital at the end of the year
amounting to $9,590,706, up from $9,518,379 in 1919. Cur-
rent assets were $16,427,205, against $12,870,225, and cur-
rent liabilities $6,866,498, against $3,351,846. The increase
in current liabilities wf,.s due largely to loans of $3,883,175,
and an increase in bills payable, which were only partially
offset by a lower total of accounts payable.
Brandram-Henderson, Ltd. — The annual report of the
comp&ny for the fiscal year to December 31, 1920, is the first
one of the larger paint companies to make its appearance.
Along with all other lines of industry, the paint companies
had to contend with most difficult conditions during the
last half of the year 1920. In view of these conditions it
will be particularly gratifying to the shareholders of the
company to learn that the board of directors consider the
■position of the company warrants their recommendation of
a continuance of the present dividend of 7 per cent, on the
prefen-ed and 5 per cent, on the common stock, payable
quarterly during the year.
Dealing with the special conditions that prevailed dur-
ing 1920, George Henderson, president and general manager,
in his report on behalf of the board of directors, states that
both from home and the export fields during the early part
of 1920, the company was flooded with orders, and although
operating difficulties resulting from the attitude of labor,
kept profits below what they should have been, results were
eminently satisfactory for the first six months. Concurrently
with the rapid decline in metals and flax seed, which de-
veloped in August and continued without interruption
throughout the balance of the fiscal period, the comp&ny ex-
perienced a succession of overseas cancellations, due to the
same conditions; and also a marked shrinkage in the home
demand.
The company has adopted a policy by wa.y of protect-
ing the year 1921 in establishing a reserve for merchandise
of $140,000, and should therefore be in an excellent position
to compete for business, which, after the long depression, is
now showing distinct signs of revival.
The directors' report also contains reference to the fact
that early in the year 1920 a. revaluation of the company's
properties had been decided upon, because of the greatly
increased value of much of its real estate and the very fav-
orable basis on which Toronto and other properties had been
acquired.
The profit and loss account shows that the net profits
for the year amounted to $120,835, compared with $299,736
in 1919. With the surplus arising from the revalua.tion of
properties of $449,544, together with the balance of $639,027,
the total amount at credit of profit and loss account is'$l,-'
209,407. Out of this sum have been paid dividends on the
prefered stock, $35,000, and on the common stock $48,500,
and interest on the first and consolidated bonds of $59,935.'
Total amount to be carried forw&rd to profit and loss account
was $897,506. as against $639,027 at the end of the previous
vear.
DEBENTURES FOR SALE
WALKERVILLE, ONT.
TENDERS FOR DEBENTURES
Sealed tenders addressed to the undersigned and marked
on the outside, "Tenders for Debentures," will be received
up to 12 o'clock noon of Tuesday, the 10th day of May,
1921, for the purchase of the following debentures and ac-
crued interest: —
$60,982.35 Local Improvement Debentures; 10-year, G'A
instalment bonds, in $1,000 and odd amounts.
$35,000 Debentures; for extending the plant and equip-
ment of the Hydro-Electric System; 20-year, 6'v instalment
bonds, in $1,000 and odd amounts.
Tenders must be submitted for each block separately.
Debentuves will be delivered and must be settled for at the
office of the town treasurer, Walkerville, Ont. All deben-
tures are coupon bearer, and bear interest from the 14th
day of December, 1920. Principal and interest payable at
the Canadian Bank of Commerce, Walkerville, Ont., on the
14th day of December.
The highest or any tender not necessarily accepted. For
further information addi'ess
A. E. COCK,
Clerk and Treasurer.
Walkerville, Ont., April 14, 1921.
539
CITY OF SASKATOON
Debenture Issue — $204,000
Sealed tenders will be received up to 12 o'clock noon,
Monday, May 23rd, 1921, for the purchase of the following
sinking fund debentures of the City of Saskatoon, viz.: —
$ 92,000 30 years, 6%
13,700 30 years, 5%
71,000 20 years, 6%
27,300 15 years, 69'r
$204,000
The 69V debentures are dated July 1st, 1921, and the
5'^"( debentures are dated April 1st, 1917.
Principal and interest are payable in Canada only.
Tenders to be addressed to the City Commissioners and
marked on the outside of envelope, "Tender for debentures."
The highest or any tender not necessarily accepted.
Further particulars on application.
A. MacG. YOUNG, Mayor.
ANDREW LESLIE, City Commissioner.
Saskatoon, Sask. 543
Condensed Advertisements
"Positions Wantfii,'- ;ii: rei' word ; all other condensed ;ul%-ertisenionts.
5c. per word- IWmimum charge for any condensed advertisement, tiSc.
per insertion. AU condensed advertisements must conform to usual
style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance : 50 per cent, extra if charged.
SECRETARY-TREASURER, age 30, of iarge company
in British Columbia, desires connection in similar capacity
with well-established business anywhere in Canada or United
States. First-class accountant with excellent credentials,
the more responsibility to be assumed the better. Pi-epared
to proceed for interview immediately for any legitimate
proposition. Apply by wire or letter to H. Anscomb, 1921
Government St., Victoria, B.C. 534
April 29, 1921
THE MONETARY TIMES
DIVIDENDS AND NOTICES
BANK OF MONTREAL
Notice is hereby given that a DIVIDEND of THREE per
cent., upon the paid-up Capital Stock of this Institution, has
been declared for the current quarter, payable on and after
WEDNESDAY, the FIRST DAY OF JUNE next, to Share-
holders of record of 30th April, 1921.
By order of the Board,
FREDERICK WILLIAMS-TAYLOR,
General Manager.
Montreal, 22nd April, 1921. 542
THE ROYAL BANK OF CANADA
DIVIDEND NO. 13.5
Notice is hereby given that a Dividend of Three per
cent, (being at the rate of twelve per cent, per annum) upon
the paid-up capital stock of this bank has been declared for
the current quarter, and will be payable at the bank and its
branches on and after Wednesday, the first day of June next,
to shareholders of record at the close of business on the 14th
day of May.
By order of the Board,
Montreal, Que., April 15, 1921.
C. E. NEILL,
General Manager.
535
DETROIT RIVER TUNNEL COMPANY
Detroit, Mich., April 5, 1921.
Notice is hereby given that the Annual Meeting of the
Stockholders of the Detroit River Tunnel Company for the elec-
tion of Directors and the transaction of such other business as
may lawfully come before the meeting will be held at the
Head Office of the Company, Room 300, Michigan Central
Terminal Building, in the City of Detroit, Mich., on the First
Thursday after the first Wednesday (being the 5th day) of
May, 1921, at 10 o'clock a.m., Eastern Standard Time.
517
EDWARD F. STEPHENSON,
Secretary.
THE CANADIAN BANK OF COMMERCE
LAKE OF THE WOODS MILLING COMPANY, LIMITED
DIVIDEND NOTICES
Notice is hereby given that a Dividend of 1% per cent.
on the Preferred Stock of LAKE OF THE WOODS MILLING
COMPANY, LIMITED, for the three months ending May
31st, 1921, has been declared, payable on Wednesday, June
1st, 1921, to Shareholders of record at the close of business
on Saturday, May 21st, 1921.
By order of the Board,
R. NEILSON,
Assistant Secretary.
Notice is hereby given that a Dividend of 3 per cent, on
the Common Stock of LAKE OF THE WOODS MILLING
COMPANY, LIMITED, for the three months ending May
31st, 1921, has been declared, payable on Wednesday, June
1st, 1921, to Shareholders of record at the close of business
on Saturday, May 21st. 1921.
By order of the Board,
R. NEILSON,
538 Assistant Secretary.
Dividend No. 137
Notice is hereby given that a dividend of Three per cent,
upon the capital stock of this Bank, being at the rate of
twelve per cent, per annum, has been declaimed for the quarter
ending 31st May next, and that the same will be payable at
the Bank and its Branches, on and after Wednesday, 1st
June, 1921. The transfer books of the Bank will be closed
from the 17th May to 31st May next, both days inclusive.
By Order of the Board,
Toronto, 22nd .\pril, 1921.
JOHN AIRD,
General Manager.
THE MERCHANTS BANK OF CANADA
QUARTERLY DIVDEND
A Dividend of Three Per Cent, for the Current Quarter,
being at the rate of Twelve Per Cent, per annum, and a
bonus of One Per Cent, upon the Paid-up Capital Stock of
the Bank, were declared, payable on 2nd May next to share-
holders of record on the evening of 15th .April, stock not fully
paid up on 1st February to participate in both dividend and
bonus on the amounts paid up on that date and upon later
payments from the date thereof.
,By Order of the Board.
Montreal, 1st April, 1921.
D. C. MACAROW,
General Manager.
Cassels and Biggar, members of the Toronto Stock Ex-
change, have moved their offices from the Standard P^ink
building to new premises at 10 Manning .\rcade, 24 King
Street West.
BROOK & ALLISON
Real Estate Loans and Insurance
RENTAL AGENTS VALUATIONS iVlADE
REGINA, SASK.
INSURANCE ENGINEER AND BROKER
ALL CLASSES OF INSURANCE WRITTEN
..TM ,-l.OOR. -AMMOND BuruO.NG, MOOSE JAW. SASK.
51S
NIBLOCK & TULL, Limited
STOCK, BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Elxchange
Calgary, Alta.
THE MONETARY TIMES
Volume 66
CORPORATION SECURITIES MARKET
Prices of Slocks on Canadian Exchanges Continue Reac-
tionary— Papers Especially Weak — Canadian (ieneral
Electric Company to Increase Common Shares
THERE was very little encouragement in the movement of
stock prices on the Canadian exchanges this week. In
some sections of the markets there was a tendency towards
firmness, but on the whole the trend was not smooth. A
better tone in Wall Street found little if any reflection here,
local conditions being so unsettled as to offset any favorable
influence from outside.
Obscurity of the exact position of the Riordon Co. and
the cutting of the Brompton dividend, resulted in weak-
ness in the papers. Riordon's fall has presented a problem
which the street has failed to solve, and an explanation is
being earnestly sought, for it is apparent that there is
something more behind such a drastic movement than new
financing. It is understood that a statement will be forth-
coming in a few days.
The cutting of the dividend by Brompton is merely the
reflection of the position of the pulp and paper industry.
F. N. McCrea, president of the company, states that earn-
ings have been sufficient to pay the usual dividend, but it
was considered, in view of general business conditions, in
the best interests of the shareholders to conserve the com-
pany's earnings. Paper companies are disposed to move
cautiously now, for the depression which has overtaken the
industry, following so closely after a period of rapid ex-
pansion, has created a delicate situation.
Trading for the week resulted in a turnover of listed
stocks on the Montreal exchange of .57,973 shares, as com-
pared with 50,518 in the previous week, while in Toronto
the figure was 17,291, compared with 20,090. Bonds changed
hands to the extent of $1,207,710 in Montreal, as against
$1,302,450, while the turnover in Toronto was $826,580, com-
pared with $871,600 previously.
Would Increase Common Stock
A special general meeting of the shareholders of the
Canadian General Electric Co., Ltd., is called for June 15,
in a circular issued by the company. The purpose of the
meeting is to secure the approval of shareholders to in-
creasing the capital stock of the company to $20,000,000,
this being an addition of $8,000,000 to the present capital
stock. At the present time there is authorized $12,000,000,
of which there is now issued $2,000,000 of preferred and
$8,800,000 of common, leaving a balance of $1,200,000 of
common stock still unissued. All of the increased capital
will be in common stock, and will bring the total of this
stock authorized to $18,000,000. .
The circular points out that as stated in the annual
report it is proposed to pay a stock dividend of 20 per cent,
on the common stock. As the remaining unissued shares
are not sufficient to cover the disbursement, it is necessary
to increase the authorization. Two-thirds of the stock issued
must be represented at the coming special meeting, but ow-
ing to the wide distribution of the present stock it is be-
coming increasingly difficult to secure such representation.
It has, therefore, been decided to increase the capital at this
time, and thus avoid having to call another special meeting
for the purpose for some years. It is not the intention.
however, to issue at the present time any capital stock other
than that required for the payment of the stock dividend.
In the event of the by-law increasing the stock being-
confirmed, the stock dividend will be made payable to share-
holders of record at the close of business June 15, 1921.
At a special general meeting of shareholders of the
Laurentide Power Co. in Montreal this week, the issue of
$1,500,000 twenty-year, seven per cent, general mortgage
bonds was authorized. The money is to cover the cost of
the installation of tvi'o additional units of 20,000 horse-
power each, and the work will be completed within the next
few months. This is the same issue which was sold to the
Sun Life Assurance Co. of Canada, on a basis slightly under
7% per cent.
RECENT FIRES
Loss for Week Totals $84,000, Compared with $1,275,500
Last Week — Several Buildings in the Town of Vars,
Ont., Suffered the Heaviest Loss
Antigonish, N.S. — April 25 — St. Ninan Street Protestant
School. Loss, $3,000.
Brampton, Ont. — Api-il 16 — Office of the "Conservator."
Cause, spontaneous combustion.
Bury, Que. — April 12 — Bury Pulpwood and Lumber Co.'s
mill. Partly insured.
Carleton Place, Ont.^April 19 — Feed mill belonging to
Chas. F. Burgess. Loss, $15,000.
Englehart, Ont. — April 14 — Railway station. Cause, spark
from an engine.
Granby, Que. — April 22 — Charter garage and ten auto-
mobiles. Loss, $5,000; insurance, $1,500.
Lethbridge, Alta. — April 15 — Farm buildings of George
Ovard, east of Crystal Lake. Partly insured.
Meyersburg, Ont. — April 21 — Beaver cheese factory.
Loss, $3,000.
Milton, N.S. — April 24 — Store of Allister Kempton and
residence of Whitfield Freeman. Insurance of $1,900.
North Portal, Sask. — April 19 — Horse and cattle barns
of W. Dorsey. Loss, $1,000.
Parrsboro, N.S.— House of W. C. Hatfield on the Two
Island Road.
Sarnia, Ont. — April 2G — Red Store, corner of Wellington
and Milton Streets. Loss, $10,000.
South Devon, N.B. — April 12 — Home of Gordon Hazlett.
Loss, $1,000.
Swift Current, Sask. — April 21 — Empress Hotel. Loss,
$15,000.
Toronto, Ont. — April 21 — Ferry boat owned by Toronto
Ferry Co. Loss, $6,000, covered by insurance.
April 27— Walk-Over Shoe Store, 290 Yonge Street.
Loss, $5,000. Residence of Louis Progosh, 956 Gerrard Street
East. Cause, electric iron left on. Loss, $1,000.
Vars, Ont. — April 26 — Post-office, blacksmith shop and
two residences. Loss, $20,000, partly insured.
ADDITIONAL INFORMATION CONCERNING FIRES
Cudworth, Sask. — March 31 — The barns on the farm of
Fred DeMong were destroyed with a total loss of $29,000.
There is insurance of $4,100 in the British Colonial.
Gananoque, Ont. — April 18 — The plant of the Eastern
Ontario Silk Products Co., Ltd., was damaged by a fire which
is believed to have been caused by the electric light wire.
The loss is $3,500, fully insured in the Scottish Metropolitan
Assurance Co.
Ontario. — The fire marshal's report for the first three
months of 1921 shows that during that period there were 2,269
fires with a total loss of $3,108,804. During this time there
were twenty fatalities.
Prelate, Sask. — April 2 — The residence of Ernest Schroen
was damaged by fire. The loss is $8,000, with insurance of
$5,600 in the London "Mutual Fire.
Quebec, Que — April 10 — The Morin Building, which was
destroyed by fire, suff'ered a loss of $122,000, with insurance
of $137,000."
St. John, N.B. — April 7 — Bedford Construction Co., on
the Red Head Road, was damaged vdth a loss of $13,000,
with no insurance.
Vercheres, Que. — April 5 — Boathouse and workshops be-
longing to J. B. Dupre and Cie. were destroyed, with a loss
of $5,000. There was insurance of $1,500 in the Mutual of
Commerce.
Wolfville, N.S.— March 29— Barn belonging to E. John-
son was destroyed, with a loss of $5,000. There was insur-
ance of $2,127 in the Nova Scotia Fire.
The Monetary Times
Printing Company
of Canada, Limited
"The CanaJian Eni^ineer'"
Trade Review and Insurance Chronicle
of Canada
Established 186'
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
Turnover Tax and an Extended Tax on Sales
Some of the Existing Taxes are Inequitable, But It is Questionable Whether a Levy on
Turnover Would Make a Desirable Substitute— Principles Enunciated By Advocates of Turn-
over Tax Are at Variance With Sound Doctrines Previously Laid Down — There Will Be
Difficulties In Collection— Position of the United States Is Different From That of Canada.
By W. G. CATES, B.A.
THE propaganda that is being conducted both in Canada
and the United States for the introduction of the turn-
over tax, or the extension of the sales tax makes it advisable
that both should be very carefully examined. This is the
more desirable, because much of the American literature on
the subject, from which the arguments used chiefly in this
country for the introduction of the turnover tax are derived,
would almost lead one to conclude that this was a remarkable
discovery in taxation, a kind of new single tax rendering
almost all other taxes quite unnecessary. Furthermore, the
results following the introduction of the turnover tax in
several countries may well cause one to ask, whether it is a
desirable substitute for certain taxes now collected.
One can quite believe that some of the existing taxes in
this country are not only heavy but inequitable, but it is
doubtful whether this could not be said of any tax that would
yield a considerable revenue. As long as the huge sums of
money now demanded by the Dominion government must be
raised, so long will taxes be heavy. It is also tolerably
certain, that in the main, they will be paid by those best
able to pay. To this it will come, even though for a season
this class may succeed in shifting the burden to other
shoulders. Some of the taxes levied during the war, and
which have brought in large returns, having been of an ex-
perimental nature, will have to be adjusted. But having dur-
ing the war adopted the principle of the "last man the last
dollar," it is idle to think that, in the matter of taxation,
the period of sacrifice is at an end, even before we have be-
gun to retire the war bonds.
Sales Tax Principle
The general principle of the sales tax requires little ex-
planation to Canadians, it having been in operation for
nearly a year. In its application the tax varies to the ex-
tent that it is deemed wise to levy it, the proposal most
favored being that the present limited tax be replaced by
another of one per cent, on all sales of commodities, an ex-
emption of say $500 a month being allowed in the case of
farmers, laborers and small traders. Others advocate that
the existing sales tax be continued, the rate, however, being
increased so as to provide the extra revenue required. The
turnover tax in its real sense is generally applied to all
transactions, with stated exemptions, and in France includes
not only sales of commodities but the profits actually received
in the form of fees, profits or commissions. In Germany the
turnover tax is equally sweeping, being paid by the seller
both of commodities and services. Canadian advocates of
the turnover tax seemingly would confine it to the sale of
commodities, and possibly transfers of real property.
The sales tax is not new, having been levied in Spain
several centuries ago, where it was known as the Alcavala.
Reference is made to it in Adam Smith's "Wealth of Na-
tions," as follows: "It was at first a tax of ten per cent.,
afterwards of fourteen per cent., and at present of only six
per cent, upon the sale of every sort of property whether
moveable or immovable, and it is repeated every time the
propei'ty is sold. It is to the Alcavala, accordingly, that
I'staritz imputes the ruin of the manufacturers of Spain."
This tax apparently appeals strongly to Latin peoples. In
its modern form it made its appearance in Mexico thii-ty
years ago under President Porforio Diaz, the well known
Dictator. He found the finances of the Republic in a bad
way, and concluded that such a tax would best rehabilitate
them. The president willed it, and his will became law. It
is true that the finances of the State were restored, but that
the conditions resulting from the Diaz regime were artificial
is evident from the collapse and chaos that followed its over-
throw.
In the Philippines
When the United States took over the Philippines from
Spain, the finances of the Islands were in a chaotic con-
dition. There was a veritable jumble of taxes. Cut off largely
from her old market, Spain, the Philippines naturally looked
to free trade with the United States, but the latter would not
consent to this until an alternative system of taxation vyas
introduced, holding that it would be impossible to abolish
the customs tax in the Islands until the required revenue was
provided by other means. The problem before the administra-
tion under Mr. Taft was to provide an alternative revenue.
Finally a one per cent, sales tax was adopted. It in time
provided the needed revenue and the customs taxes were
abolished. It is to be noted that both in Mexico and the
Philippines the tax is much more widely applied than in
Canada. In the Philippines it yields about $7,000,000 a year.
France Adopted Turnover Tax
France adopted a turnover tax in June, 1920, the rate
being 1.10 per cent, on all transactions, together with a tax
on certain articles of luxury. The action of the Republic has
been cited as a strong reason for the adoption of this tax else-
whei"e, but the results have been so disappointing that hence-
forth they are unlikely to be held up as a recommendation.
At first the estimates were largely justified, 292,000,000
francs having been paid to the treasury in July last. Re-
cently, however, the receipts have fallen to 151,000,000
francs a month. According to estimates the collections
should have been 3,000,000,000 francs for the first six months ;
they were actually 1,200,000,000 francs. Indeed, the startling
failure of the turnover tax is held responsible' for the huge
deficit in the national revenue for the current year. Germany
also has a turnover tax, but it is impossible to judge of its
results.
THE MONETARY TIMES
Volume 66
It is worth while noting that the adoption of the turn-
over tax, or a wide application of the sales tax, has only
been made by those countries that are either bankrupt, or
whose finances are in a bad way. Both Mexico and the
Philippines were insolvent when they adopted it.. France to-
day can hardly be classed, much less Germany, as a thor-
oughly solvent nation. As a matter of fact experience would
seem to indicate that the wide application of these taxes
means that the last reserve of taxation has been reached.
Principles of Taxation Violated
In passing, it is worthy of note that some of the most
prominent and ardent advocates of the turnover tax in the
United States enunciate new principles of taxation utterly
at variance with those laid down by Adam Smith and John
Stuart Mill, which are rightly regarded as eminently sound.
Mill's dictum, which is worth recalling, runs: "The subjects
of every state ought to contribute to the support of the gov-
ernment as nearly as possible in proportion to their respec-
tive abilities. That is, in proportion to the revenue which
they respectively enjoy under the protection of the State.
In the observation or neglect of this maximum consists what
is called the capability or inequality of taxation."
Jules S. Bache is one of the best-known of American
champions of the turnover tax, and he enunciates an entirely
different principle as follows: "'It should b'^ the policy of the
counti-y that everyone enjoying the protection of the govern-
ment should pay in equal proportion towards the expense of
that protection." This obviously would make the poor man
pay as much as the rich, an indefensable position, and one
which no government in a truly democratic state dare take.
Proposals for a Change
In Canada the most concrete proposals for a change in
methods of taxation are to be found in the resolutions adopted
at a conference of representatives of the Canadian Manufac
turers' Association, the Canadian Credit Men's Association,
the Retail Merchants' Association of Canada and the Cana-
dian Wholesale Grocers' Association, held in Toronto at the
latter part of March. These are as follows: —
That the Business Profits War Tax Act shall not be
re-enacted.
That the Income Tax Act as regards corporations shall
be repealed.
That the present existing manufacturing tax on con-
fectionery shall be abolished.
That the present sales tax shall be adjusted so as to
provide the additional revenue needed by the Dominion gov-
ernment.
It will not escape notice that these proposals are in
reality designed to relieve but one class, those who pay the
business profits tax and the income tax on corporations, the
manufacturing tax on confectionery being negligible. In the
United States, however, while some of the advocates of the
turnover tax exhibit little solicitude for the masses, they do
propose that the introduction of this tax should be accom-
panied by the raising of the exemption on the income tax
from $2,000 to $4,000, and possibly $5,000. If the four pro-
posals referred to were adopted it would mean that the
revenue now received from the business profits tax and the
income tax on corporations will be paid by the mass of the
people.
Without attempting to go deeply into the matter, it is
obvious that this would weigh heavily on persons on salary
and on others having but small incomes. According to figures
supplied by the Canadian Manufacturers' Association at this
conference $180,000,000 could be raised through the turnover
tax, an amount equal to $20 per capita. In the case of a
married man without a family having an income of $2,500
this would be tantamount to the doubling of his income tax.
If he had one child, then, instead of paying $12, he would
pay $.32; if he had two children, he would pay $44; three
children, $60., In proportion as the number of children were
increased, to that extent would the taxes of the head of the
family be increased by a multiple of $20. This would mean
taxation, not according to ability to pay, but according to
the number of children.
Estimate of Taxable Turnover
There is good reason to think that the estimate of the
country's taxable turnover, which the Canadian Manufac-
turers' Association places at $18,000,000,000, is unduly high.
Otto H. Kahn is as reliable an American financial authority
as can be cited, and according to his figures a reasonable
estimate of per capita taxable turnover in the United States
would be $1,528, but, according to the C.M.A. estimate, in
Canada it would be $2,000. To say that the per capita turn-
over in this country is equal to that of the United States
would be to exaggerate, to say nothing of placing it at 25
per cent, higher. It may also be said that the National Asso-
ciation of Manufacturers of the United States has estimated
the returns from a turnover tax at four times the figure
supplied by Mr. McCoy of the United States Treasury. Those
who collect taxes do not share the optimistic views of some
turnover tax advocates. This leads one to the conclusion that
the estimates of the probable revenue from a turnover tax
have been equally over-stated. As a matter of fact, the
returns from the sales tax have not come up to expectations.
From May 19, 1920, to March 31, 1921, the actual collections
were $38,025,165, or at the rate of approximately $3,600,000
a month. Be it also remembered that this period included
three months of very high prices and very heavy buying.
Prices are falling to such an extent, to say nothing of the
contraction in demand, that at the present rate the tax would
hardly yield $35,000,000 during the current fiscal year. On
its present basis, were it trebled, it certainly would not yield
anything Iki? $100,000,000. Estimates of the probable re-
turns from a turnover tax made within the last six months
are bound to be very disappointing for the reason that prices
are far above normal, and an increase in the sales tax would
but hasten their fall.
Difficulty in Collection
Business men may well investigate these new proposals
very thoroughly, for they promise a great deal, and it is well
known that in the diflicult days that are upon us it is be-
coming increasingly hard for even sound propositions to make
good. When one is told that by the levying of a mere tax
of 1 per cent, the federal revenue may be increased by nearly
40 per cent, t'sat $180,000,000 may thus be taken from the
great mass of those least able to pay without them feeling
it, one may be pardoned for expressing doubt.
One of the strongest arguments used by the advocates
of the turnover tax is that it can be passed on to the ulti-
mate consumer. How could a street car company pass on a
1 per cent, tax on a five-cent fare ? How could other concerns,
that make but a small charge for a service pass it on? If
they did charge another cent or two they would then be using
the tax as a means to collect huge profits, and there would be
no way of getting at them if the business profits tax were
replaced by the turnover tax. In a falling market, such as
we will have for some time, it would be extremely difficult
for many businesses to pass on the tax. If taxes and extra
expenses generally could always be passed on, business
losses would be few.
It is probable that experience would soon demonstrate the
impossibility of always passing on the turnover tax. If
levied widely, especiaJly during the present unsettled state
of business, it is quite probable that transfers of property
and merchandise would be arranged in such a way that, to
a considerable extent, a system of leasing and consignment
would replace actual saJe. Business men would be forced
to get around the intermediate turnover tax, unless it were
very low, and this tendency would be accentuated as com-
petition became keener. Moreover, a uniform tax on all
businesses, no matter what their rate of profit may be, can-
not be considered equitable; those who imagine that the
replacing of the business profits tax by a turnover tax will
relieve them of a load, should bear in mind that they pay
the former only when their profits exceed ten per cent., but
they would pay the turnover tax whether they made-a profit
or not, for it must be remembered that it is £■ tax on gross
business and not on net profits. These difficulties which must
suggest themselves to those who give serious thought to the
May 6, 1921
THE MONETARY TIMES
subject, are usually met with the answer that exceptions
may easily be made to cover such cases. But riddle the
turnover tax with exemptions, and it becomes a mere sales
tax, which must be levied at over treble the present rate if
the desired revenue is to be obtained. ^
U.S. Argument Does Not Apply
A .strong ai-gument in the United States for the sub-
stitution of the turnover for the business profits tax, on the
ground that the latter causes many wealthy persons to in-
vest in the tax-free securities, is of little effect in Canada.
It is true that the $14,000,000,000 worth of tax-free bonds
in the Republic does provide a way of escape for those who
desire to beat the heavy imposts on capital; moreover, this
class of securities is growing, because those of a municipal
character are exempt. But the situation in Canada is quite
different,, for municipal securities are not exempt, while the
total of tax-free bonds probably does not exceed $1,200,000,-
000, and instead of growing, the volume is being diminished.
To abolish entirely the business profits tax for a turn-
over tax of one per cent., or a widely extended sales tax, or
a much heavier sales tax on the existing basis, is a question-
able proceeding. The business profits tax should be ad-
justed; it iwid the income tax on corporations should be
combined. But to replace entirely the tax levied on ascer-
tained profits above 10 per cent, by a tax levied on con-
sumer, which is expected to raise not only as much, but from
two to three times as much as the business profits tax pro-
duced last year, would be unjust. If the great mass of con-
sumers were better off than formerly, better off than those
relieved of t&xation, there might be justification for such a
course; but with unemployment increasing and wages falling,
their lot is becoming less favorable. Besides, if the .Ameri-
can proposal of replacing the business profits tax by a wide
turnover tax is to be adopted, it should at least be accom-
panied by the other American recommendation, the raising
of the exemption on incomes from $2,000 to $4,000 or $5,000.
It is also to be observed that while the excess profits tax
in the United Kingdom ha.s been abolished, no new forms of
taxation have been introduced; that is to say, no attempt
has been made to make up the revenue thus lost by levying
heavier consumption taxes on the great mass of the people.
It is in decisions such as these that true statesmanship is
revealed.
Must be Equitable
Of one thing we may be sure, attempts to shift taxation
from those best able to pay, will fail, and that more com-
pletely during a time of business depression than during
any other. Canada needs population, and she will not get
it if this becomes known as a dear country for the mass of
the people to live in. Introduce weighty consumption taxes,
such as are not in existence even in the United Kingdom,
and which even if they are introduced into the United States
will be much lighter because of the grei;ter population, and
those who desire to improve their lot will think twice of
coming here. Our taxes may be heavy, but in effect they
will be lightened in proportion as there is the consciousness
that they are equitable. If the tui-nover tax should become
law, and go the way of the lu.\ury tax, then with other
sources of revenue falling, the country would be worse off
than ever; and the same may be sa-id of a widely extended, or
increased sales tax, it being assumed that the business profits
tax is repealed.
As an alternative in case that in the opinion of the
federal authorities a.n adjusted business profits tax, or the
existing sale.* tax would fail to produce the required revenue,
the following is suggested. The sales tax, as at present, is
heavy enough, for 2 per cent, being the minimum, it, in the
aggregate, adds more to the cost of many commodities than
is generally realized. If in the effort to make ends meet, it
should become a matter of choosing between a much more
widely extended, or a higher sales tax, and a low turnover
tax, then the latter, if levied &t a rate of one-half of 1 per
cent, on all transactions, would be preferable, since it would
not be confined to one class. It could not always be passed
on, but the low rate would prevent it becoming oppressive.
In these observations the contention is not against resort to
either the sales or the turnover tax, should they be abso-
lutely necessary — though they should not be resorted to until
all other means have been exhausted — but to the adoption
or the extension of these in order to make the less able take
on burdens from which the better able to pay have been
released.
SOME BUILDING ACTIVITY AT THE COAST
Scarcity of Funds for Bonds and Mortgages, However — City
Finances a Difficult Problem — General Business is Dull
(Staff Special.)
Vancouver, May 4, 1921.
THE present outlook in Vancouver and the coast generally
is, in some instances, quite discouraging. Lumbering
and mining are extremely quiet, and, with the salmon canning
industry, business is dull. This is not for lack of production,
but for" lack of demand. The outlook for a large fruit crop
is bright, but warm weather is now needed. The spring
season has been somewhat backward. The tourist industry
will be a brisk one in the next few months, present weather
conditions being ideal.
The financial outlook would be said to be healthy. The
demand for loans on mortgage in Vancouver is increasing,
but only a few of the loan and trust companies appear to be
in a position to take care of this business, owing to the diffi-
culty of procuring funds for investment from Eastern
Canada.
In view of the excellent rate of yield on good bonds,
companies are finding it more difficult to dispose of their
debentures and guaranteed investment receipts, which, in
days gone by, provided a regular source of supply. Some
of the life insurance co'mpanies continue to loan, but on
securities, the value of which is carefully scrutinized. While
building costs are lower, both as to material and labor, there
is no certainty of the present levels being maintained. There
is at the present time a fair amount of new house building
under way, chieflv by owners of vacant land, and for then-
own use. "very little speculative buildings is being indulged
in, and the real estate market is decidedly quiet.
Point Grejr continues to be more in demand than Van-
couver City for home sites, there being no improvement tax
in that municipality, and the roadways being, on the whole,,
in a much better condition of repair. During the past year
many attractive homes have been built in the Shaughnessy
addition, Strathcona and Kerrisdale.
Rentals have generally been maintained, with few in-
creases, this spring. Some reductions have been granted in
store rentals to tide over the situation during the deflation
period. The outlook for an improvement during the summer
months is only fair, but from all accounts conditions here in
Vancouver are better than in many of the eastern cities, and
decidedly better than across the line.
The civic taxation question is still a bone of contention,
and, while the provincial government has not conceded the
wide powers asked for by Vancouver and other municipalities,
it is evident that an effort must be made soon to get together
and agree (if that be possible) upon an enlarged basis of
taxation to meet civic needs, such as school accommodation
and roadwav improvement. Were the interests affected by
the proposed new taxation assured of the economic and
proper expenditure of funds raised by additional taxation,
no doubt the opposition to such would be greatly modified.
H. R. Silver, Ltd., of Halifax, N.S., have opened an office
at 13 St. Sacrament St., Montreal. In addition to the West
Indian products — molasses and raw sugar — in the import of
which the firm is actively interested, H. R. Silver. Limited,
run a fishing fleet, and will, should the business warrant it,
send cargoes of fish direct to the port of Montreal during the
open months.
THE MONETARY TIMES
Volume 66
THE WEEK IN PARLIAMENT
Session Will End About June 1, and BudRet Speech is An-
nounced for Monday — (irand Trunk Arbitration
Hill Passed
(Special to Tlu- Moiuinry I imcs.)
May 5, 1921.
Thursday. April 28
In House of Commons: — (a) First reading bill
amending Civil Service Act taking appointments of certain
postmasters, day laborers and scientific and technical em-
ployees from Civil Service Commission: (b) Second reading
of bill amending Research Council Act and establishing a
National Research Institute; (c) Second reading of act to
authorize ratification and carrying into effect of the protocol
of December 16, 1920, accepting the statute for the Per-
manent Court of International Justice; (d) Railway com-
mittee reported in favor of a bill to incorporate the Fort
Smith Railway Co., the promoters of act to incorporate the
Slave River Railway Co. having agreed to withdraw, as both
railways would be for same purpose in same territory.
In Senate: — (a) Third readings of bill to extend time
for payment of certain debentures issued by the Harbor
Commissioners of Montreal, and bill to amend the Currency
Act to provide for nickel 5-cent pieces; (b) Second readings
of French Trade Agreement Bill, of act incorporating Com-
monwealth Bank of Canada, of act incorporating Metropolitan
Trust Co. of Canada, of act respecting Credit Foncier Franco-
Canadien, of act respecting Western Dominion Railway Co..
and of Canada Shipping Act Amendment Bill to force vessels
to clean out oil at sea to prevent fire in harbors; (c) Second
and third readings of Grand Trunk Arbitration Bill with
amendments.
Friday, April 29
In House of Commons: — (a) Petition by Quebec Steam-
ship Co. asking for act to amend and consolidate their acts,
and increase their authorized capital stock; (b) Third read-
ings of following bills: — One respecting Quebec, Montreal
and Southern Railway Co., and one to incorporate Fort Smith
Railway Co.; (c) Amendments made by Senate to bill to in-
corporate Gilmour and Hughson, Ltd., agreed to; (d) Second
reading of act respecting Dominion Express Co.; (e) Militia
and Public Works Departmental estimates passed.
In Senate: — (a) Third readings of following bills: — One
respecting the London and Lake Erie Railway and Trans-
portation Co., and one respecting Maritime Coal, Railway
and Power Co., Ltd.; (b) Debate on French Trade Agreement
Bill; (c) Debate on West Indies Trade Agreement Bill.
Monday, May 2
In House of Commons: — (a) Amendments made by
Senate to Grand Trunk Arbitration Bill agreed to; (b) De-
bate and division on bill to amend Civil Service Act by
taking some appointments away from Civil Service Commis-
sion and the Hon. A. K. MacLean's amendment for a six
months' hoist, the government being sustained by a majority
of fifteen.
Tuesday, May .3
In House of Commons: — (a) First reading of Senate
bill respecting Maritime Coal, Railway and Power Co., Ltd.;
(b) Second readings of following bills: — One to amend the
Maple Products Act, one to amend and consolidate the Copy-
right Act, and an act to amend the Bankruptcy Act; (c) With-
drawal of bills to consolidate the acts relating to Patents
of Invention, and to amend the Trade Mark and Design Act;
(d) Third reading of bill to amend Research Council Act
and to establish National Research Institute.
In Senate: — (a) Royal assent given to following bills: —
One respecting Dominion Life Assurance Co.; one incorporat-
ing Mayo Valley Railway, Ltd.; one respecting Canadian Pa-
cific Ry. Co., Ltd.; one incorporajting Canadian Transit Co.; one
respecting Lake of the Woods Control Board; one extending
time for completing St. John and Quebec Railway betwee_
Centreville and Andover; one concerning Canadian Wheat
Board; one to amend Winding-up Act; one to extend time
for paying certain debentures of Montreal Harbor Commis-
sion; one to amend Currency Act of 1910 by authorizing
nickel five-cent pieces; one respecting Grand Trunk Arbitra-
tion; one respecting the London and Lake Erie Railway and
Transportation Co.; one respecting the French Trade agree-
ment; one respecting the Canada-West Indies Trade agree-
ment; one respecting the Quebec, Montreal and Southern
Railway Co.; and one to amend the incorporation act of
Gilmour and Hughson. Ltd.; (b) Second reading of act re-
specting certain patents of the Autographic Register Systems,
Ltd.
Wednesday, May 4
In House of Commons: — (a) Appointment of special
committee to hear evidence concerning proposed Copyright
Bill; (b) Third readings to following bills: — One to amend
Post Office Act, and one to amend Act concerning Inspec-
tion of gas and gas meters; (c) Passing of estimates of .$515,-
000 for expenditure on Trent Canal, and long debate on five
million dollar estimate for expenditures on Welland Canal.
In Senate: — (a) Senator MacDonald gave notice that he
will move for Senatorial committee to inquire into causes of
unemployment in Canada, and remedies.
Budget Speech Next Monday
The session will end before or shortly after June 1.
This is the government intention, and to do that it is bring-
ing down the budget on Monday next. Saturday, sittings
commence this week, and, if necessary, the government will
start morning sittings as well very soon.
During the past week debates grew animated on a
variety of topics, the International Court of Justice, the Civil
Service and a government bill which was interpreted by the
Opposition as meaning a return to patronage, the Grand
Trunk Arbitration Bill which is finally passed and estimates
for public works, including the Trent Canal and the Welland
Canal. Committees were bus.v, one trying to find out how to
get a coal supply for Ontario in Canada, another trying to
ferret out something useful about the Canadian National
Railway and deficits thereon, and another discussing the
best ways of re-establishing the returned soldiers not yet re-
established.
ALBERTA FARMERS THROUGH WITH GAMBLING
(Staff Special.)
Calgary, May 2, 1921,
IN an interview with The l\fo>ictc!ry Times' representative,
Wm. Toole, who is in charge of the Canada Life's invest-
ments in southern Alberta, said: —
"The past winter was unusually fine, and, consequently,
the live stock on the ranges and farms have come through
in exceptionally good condition, and bear full evidence of
benefits derived from the well-cured hay and grass of the
previous season. The cows are in excellent condition, and
a big calf crop is anticipated. The same remarks apply to
horses and sheep, and there should be an unusually heavy
lamb increase. Last spring, you will remember, owing to
the stonny and long winter and poor feed, the cattle, both
on the famis and ranges, were in a very weakened condition,
and, consequently, the increase was not up to the average.
This year it will be much greater than the average. Another
interesting feature is that the cattle are in such fine shape
at the present time that the beef will be ready for exporting
much earlier than usual.
"Regarding grain conditions. From the informati^pi I
have been able to gather, I do not think there will fc as
large an area sown this year as last spring but all reports
indicate that the ground is in excellent shape, and that the
seed-bed has been more carefully prepared than in previous
years. Each year the area of well-prepared land is increasing,
as costly experience is teaching the farmers that it does not
. ay to gamble at the expense of good farming."
May 6, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle,
of Canada
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Telephone: Main 7404, Branch Exchange connecting all departznenta.
Cable Address: "Montimes, Toronto."
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I'UINCIPAL CONTENTS
Editorial : page
Turnover Tax not Desirable 9
The Income Tax Payments . 9
Distribution of Bank Credit 10
Paying Too Much for a Whistle 10
Speci.al Articles:
Turnover Tax and Extended Tax on Sales 5
Some Building Activity at the Coast 7
The Week in Parliament 8
Alberta Farmers Through With Gambling 8
Advantages of the Gross Sales Tax 14
Cajiadian Loans Accounts Lower in March 18
New Brunswick Funds Railway Debt 24
Reinstatement of Life Policyholder 26
Infringement of Copyright 26
Weekly Departments:
News of Industrial Development in Canada 28
Insurance Licenses and Agency Notes . 30
New Incorporations 30
News of Municipal Finance 32
(lovernment and Municipal Bond Market 34
Corporation Securities Market 3**
The StocK Markets 40
Corporation Finance 42
Recent Fires 44
Tl KNOVER TAX NOT DESIKABLK
A TURNOVER tax, admittedly designed for the shoulders
of the consumer, would be one of the worst means of
collecting revenue which this country could adopt. Like the
tariff, it is an indirect tax, and is based not on ability to pay,
which is now accepted as the equitable basis of ta.xation, but
on the amount expmded. It is at variance with the niove-
nunt in the Lnited States and throughout the British Em-
pire to obtain revenue from those who are wealthy, by means
of progressive income taxes and succession duties. It is in
short an attempt to shift the burden of the war from the
shoulders o'' business .and wealth to the people as a whole.
Such might in any case be assumed from the widespread sup-
port given to the proposal by business organizations. But
interests which attempt to link themselves with a retro-
grade movement will finally suffer its ill effects themselve.-;.
But while tlie proposal, as a substitute for some of the pre-
sent taxes, lias appealed strongly to business men, the im-
petus to the movement has come from a very few, and
originally from the United States. Industry as a whole
has viewed it with passive favor, but from the unorganized
consumers, and from the farmers and others engaged in the
production of raw materials there has been no voice of pro-
test. It is the duty of the government to guard their inter-
ests from the undoubted injury which a turnover or an ex-
tended sales tax would bring. That there are distinct disad-
vantages to the tax is shown in the leading article in this
issue, which is one of the few critical examinations of the
proposal to be published in this country.
Has Canada arrived at that stage of financial demoraliz-
ation where such a drastic step is required? Scarcely so,
when there are still unutilized possibilities in existing taxa-
tion. Rich and poor alike in this country enjoy a standard
of livino: unexcelled elsewhere and equalled in few places.
There is evidence of wealth and prosperity on every hand.
If it were not so then our talk of immense resources and
attractions for both capital and labor would have been a
delusion. Canada is far removed from the condition of the
Phillipines, Mexico, and France, where the threat of financial
insolvency alone lead to the adoption of a turnover tax.
THK in((»:mi-: tax payment>
C.-\X.A.DIANS who are fortunate enough to pay a federal
income tax now wait in fear and trembling of the aw-
ful penalties for delay or mis-statement. April 30 and the
few preceding days found the income tax offices crovi'ded, so
much so, indeed, that in Montreal the clerks had to come out
and take in the money on the street. Special police guarded
the offices in the larger cities, as many of the taxes were
paid in cash. Most of the offices remained open until Satur-
day evenin", but in spite of this there were still payments
coming' in early during the present week. These stragglers
may have been alarmed to read only yesterday that their
returns had been marked "for penalty," but there is safety
in numbers and nothing drastic is expected. The prisons of
Canada couUi not hold the income tax paying population,
and it is s^fp to say that there has not been a perfectly
correct return filed.
In the fiscal year ended March 31, 1920, the income tax
yielded $17,872,202. For the year ended last March it
yielded .$38,814,495. With higher incomes and a better col-
lection there should be still more this year. It is estimated
that during the last week of .'^pril nearly $10,000,000 was
collected in Montreal alone, the figure for .April 30 being
?3,000,000. The money came in in cash, and in cheques, certi-
fied or uncertified, and in the case of the larger payments
the cheques were usually dated .April 30, so that the company
had the use of the money as long as possible. In Montreal
the mail business was so great that clerks were continually
busy opening the bushels of letters arriving with returns
and cheques. Some of the money came in small bills, with
a lot of silver and even coiipcis. which meant a great deal
THE MONETARY TIMES
Volume 66
of additional work to the cashiers and accountants, especially
with the smaller payments running- into silver and copper
currency. The accountants said that were the returns all
coming in in cheques their task would be comparatively easy,
but the flood of bills with silver and copper multiplied the
difficulties of the work. To cope with this work a staff of
twelve cashiers was established. Each of these comprise a
cashier, to receive the money, an accountant to record it,
and an assistant to write out the receipts, while the mail
business was looked after a similar procedure was followed.
A feature of the tax business this year is the manner
in which many of the larger corporations and big taxpayers
have employed expert chartered accountants to look after
the preparation of their returns and payments. One lead-
ing accountant stated that he and many others of his pro-
fession had been almost exclusively engaged on this work for
a week or more. To substantiate this statement he showed
a pile of statements and cheques prepai-ed for different firms
and persons, each carefully worked out, with the accom-
panying cheques awaiting signature. In this way the ac-
countants have become expert students of the income tax
laws, and can make sure that such large taxpayers are meet-
ing their just dues, and not over-taxing themselves. They
have also become experts on tax law methods, so that the
woi'k has been considerably eased.
crop failure, in whole or in part, while another province may
have a good all-round crop. One great strength of the
Canadian banking system is that through its operation the
equilibrium of the country's finance is maintsoned.
DISTRIBUTION OF BANK CREDITS
IN times of stress it is of the utmost importance that bank
credits be easily transferred from one point to another.
Similarly, when business is dull, it is a great advantage to
be able to move funds from where there is no demand for
them to where they can be profitably utilized. It is for this
purpose that the federal reserve system was organized in
the United States. The Canadian banks, being national in
their scope, can do this already, as was pointed out recently
by J. L. Clarke, of the Merchants Bank, in an address in
Saskatoon. We have a banking system acclaimed by economic
experts as one of the best, if not the best in the world.
During the past twenty years this continent has experienced
several financial periods of depression, and the fact that in
Canada there was no panic, speaks well for our economic
system. During the recent great war the Canadian banks
withstood the strain of not only the fina.ncing of production,
the marketing of our food products, the manufacturing and
the forwarding of munitions and other supplies to our allies;
but in addition extended large loans to the Dominion and
Imperial governments in helping to finance Canada's part
in the -struggle. It might be mentioned the efficient manner
in which the banks co-operated with the federal government
in floating the various Victory war loans, and in this connec-
tion the Canadian people are to be highly commended for the
generous response to the call. Since the war the country
has been endef,.vouring to get back to normal, and here,
again, the banks are rendering a great service in their wise
policy of "gradual selective curtailments" of credits in order
that the different interests may gradually get their "house
in order" preparatory to weather any possible storm th&t
may follow as the result of inflation brought about by ab-
normal conditions.
Money placed on deposit with the banks is used to a
large extent to carry on the business of the country, being
loaned out to borrowers entitled to f,.ssistance for legitimate
production purposes and for the handling of the country's
products, until finally disposed of on the world's markets.
In loaning money to farmers the local bank manager has not
to refer to his ledgers to ascertain if he has funds to loan.
If his local deposits are insufficient to meet the needs of his
district, he h&s the surplus deposits of other districts to
draw from. Thus branches having a surplus of funds supply
branches where local resources are insufficient to meet de-
mands for loans. Canada is a country of great distances and
varied climatic conditions, one province ma.y suffer from
I'AYING TOO MUCH FOR A WHISTLE
THE ratepayers of Three Rivers, Que., have ratified two
by-laws to borrow a sum of over $400,000 to pay off
debts contracted by the city in recent years, in connection
vyith the bonusing of certain manufacturing enterprises which
became bankrupt. Only one-fifth of the ratepayers cast their
votes. The financial affairs of Three Rivers were recently
investigated by Judge Desy, sitting as a royal commission.
He condemned the operations whereby bonuses were paid to
certain enterprises. The by-laws now passed were submitted
to the ratepayers several months ago and refused, the
opponents of the measures contending that aldermen of the
council responsible for the de-legislature at its last session
ordered the council to submit the by-laws again or as an
alternative levy a special tax, payable in three years to cover
the deficit. The by-laws spread payments to meet the deficit
over ten years.
Three Rivers is not the only municipality in Canada
which has found a dependent industry to be worse than use-
less. Even where the concern is a strong one, and obtains
municipal assistance, not because it needs it, but because
such assistance is available, very often the city or town
finds that it has paid too much for its whistle. The new
business and taxes which are derived from the additional
population may be more than offset by the cost of services
performed for the company free of charge, where an exemp-
tion from assessment is granted. The still greater evil of
guaranteeing securities often proves costly, for the necessity
for such guarantee is evidence that the business is not strong.
In short, a concern which cannot stand upon its own feet in
adversity as well as prosperity, is no asset to a municipality.
Large transactions in war loan bonds led to the close
shading of prices. The action of the Toronto stock exchange
in substituting decimal quotations with steps of .05, in place
of steps of Vs, makes possible sales of large amounts on
the exchange, and is already reflected by a bigger volume
of business. The new unit is just fifty cents on a thousand-
dollar bond, or fifty dollars on a hundred thousand.
Commenting upon the 1921 session of the Prince Edward
Island legislature, a Charlottetown paper says: — "In some
respects it has been the most remarkable ever held in this
or probably any other country in the civilized world. As
to producing results that can be of any benefit to the people
of the province, it may be said to have been absolutely
barren." Needless to say this is the comment of an opposi-
tion paper, which is none the less egotistical as to the im-
portance of the island province.
THE REVOLVING DOORMAT
In London they now tell a story of a bailiff who went out
to effect a seizure on the contents of a house. The inventory
began with the chatties in the attic, downward to the cellar.
When the dining-room was reached the tale of furniture ran
thus: —
"One dining-table, oak.
"One set of chairs (6), oak.
"One side-board, oak.
"Two bottles of whisky, full "
Then the word "full" was struck out and replaced by the
word "empty." Soon the inventory went on in a hand that
straggled and lurched diagonally across the page until it
finally closed with: —
"One revolving doormat."
I
May 6, 1921
THE MONETAE Y TIMES
To Investors
"^ IF you wish to buy or sell
nSl Victory Loan or other
bonds, we would remind you
that our branches at Toronto,
Montreal, Winnipeg and Van-
couver have departments es-
pecially organized for this
purpose.
Call at our nearest branch ;
our Manager will be glad to
arrange this for you.
THE CANADIAN BANK
OF COMMERCE
Head Office
Paid-up Capital
Reserve Fund
$15,000,000
$15,000,000
Judicious Financing
Whether you are engaged in agricultural,
manufacturing, industrial or merchandis-
ing pursuits, your prosperity depends pri-
marily upon the judicious handling of
finances.
This Bank offers you a constructive, sta-
bilizing service, coupled with competent
advice, and is willing to foster enlarge-
ment on safe lines.
Make a banking connection conducive to sound
growth. Consult our local manager.
IMPERIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
Helping
Humanity
DETWEEN the wheat on our prairies
and the daily bread of the people
of this country and of distant lands runs a
long chain of operations, each link of
which is strengthened by banking services.
For 55 years this Bank has been privi-
leged to furnish a substantial part of the
financial energy necessary in the growth,
transportation and marketing of Canada's
vast crops.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET, E.C.2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
C. F. Jamieson has been elected president of the Leth-
bridge Board of Trade, succeeding G. R. Marnoch.
W. G. Wright, formerly of Ross and Wright, insur-
ance adjustors, Toronto, has organized the new firm of
Wright and McFadden, at the same address, 714 Excelsior
Life Building.
John A. Ross, who for several years past has been
associated with the firm of Ross and Wright, Toronto, has
opened an office of his own at 2 Toronto Street, in the same
city, as an insurance adjustor. Mr. Ross will have associated
with him his son, Kenneth A. Ross.
Edward Beck, of the Canadian Pulp and Paper Associa-
tion sailed for Europe from New York this week. During
his absence, Mr. Beck will visit Scandinavia, Finland, France
and other European pulp and paper producing sections for
the purpose of discovering whether these offer anything by
way of methods which could be used to advantage in the
Canadian industry. At Stockholm he will be joined by G. N.
Piche, chief forester of Quebec, and similar other forestry
experts of the Dominion, who will aid in the investigation.
T^irr ^ r i [f^^
Bank of Nova Scotia
New Branch at Oakwood and St. Clair Aves., Toronto
BANK BRANCH NOTES
The following is a list of branches of Canadian banks
which have been opened recently: —
Rodas, Cuba Royal Bank of Canada
Banff, Alta. (C.P.R. Hotel
Branch) Bank of Montreal
River John, N.S Bank of Nova Scotia
Joggins, N.S Bank of Nova Scotia
Santiago de Los Caballeros,
Dominion Republic Bank of Nova Scotia
The Bank of Nova Scotia ".'nnounces the following trans-
fers of managers: F. H. Gilroy, from Brussels, Ont. to
Petrolea, Ont.; C. G. Walker, from Petrolea to Sudbury, Ont.;
E. A. Dixon, from Sudbury to Brussels.
G. I. Alexander, formerly manager of the Imperial Bank
at Ingersoll, has been appointed m&nager of the branch at
Walkerville, Ont.
J. A. Woods, western superintendent of the Bank of
Toronto and manager of the office in Winnipeg, has resigned,
and will join the staff of the National City Bank of New
York. He will be succeeded by J. F. Marsh, of Toronto.
INVESTMENT HOUSES EXPECT IMPROVED BUYING
April was a Dull Month, but May Promises More Activity —
Montreal Not Losing by Western Defaults, but
Has Suffered in Stock Market
(Staff Special.)
Montreal, May 4, 1921.
DURING April Montreal bond dealers lived chiefly on ex-
pectations, as there was little demand for investments
of any kind. Income taxes due at the end of the month were'
diverting the attention of people of means, and no doubt
absorbed part of the accumulation of money. That dealers
were justified in anticipating an improvement this month is
already indicated by a revival of business, with a stiffening
of prices and a disappearance of odd lots from th? market.
There will, however, bs no lack of borrowers i;.' prices
advance to any extent. The province, while not undertaking
a big program, will likely require some funds on capital
account this year. Grand Mere and Shawinigan Falls are
now in the market for bids, and Montreal may also float a
loan in the near future. Some corporate financing is also
coming along, and an issue of power bonds, offered privately
by a firm here, has been nearly all sold. The Laurentide
Power Co. recently secured $1,500,000 from the Sun Life
Assurance Co. at about 7% per cent.
Quebec province has always been cautious in bond buy-
ing, and very few western municipals have been sold here.
Reading now of the numerous defaults in payments, inves-
tors are congratualting themselves on their caution. Quebec's
own municipalities have practically a clean record; the only
ones to get behind were a few adjoining the city of Montreal,
and it was partly to strengthen their position that the Metro-
politan Commission bill was passed at the recent session of
the legislatui'e.
Stock Markets Avoided
While prices on the stock exchange have been holding
firm for the past two weeks, investors have been somewhat
frightened by the breaks which took place during the winter,
especially the late one in Riordon. There is, however, a class
of stock buyers in Montreal and the district served by the
Montreal houses who will come into the market sooner or
later.
A local dealer, in discussing the general investment
situation with The Moiictivy Times' representative, made an
interesting comparison between Montreal and Toronto. The
former, he pointed out, was inclined to go to extremes,
buying the most secure bonds and the most speculative Cana-
dian stocks. Toronto, on the other hand, had gone in heavily
for western municipals and for some of the higher yielding-
corporation issues, but, as regards Canadian stocks, it was
more conservative. Tliere was, he added, however, a Dig
Toronto business in speculative New York stocks which was
not so prominent a feature in Montreal.
A number of enterprises which expect to sell their stock
direct to the public are in process of formation. Some of
these are in the building field, while another business which
is in evidence is the discounting of automobile dealers' notes.
There is also some interest in oil and other mining securities
now being offered.
OBITUARIES
David B. Wood, prominent in the milling industry in
Ontario, died in Hamilton this week at the age of 63 years.
He was at one time president of the Wood Milling Com-
pany.
George E. Cork, a well-known figure in Toronto bond
circles, died suddenly this week of tonsilitis. For more than
a year Mr. Cork had been manager of the Toronto office of
the United Financial Corporation, Limited. Previous to his
association with that company he was connected with the
Dominion Securities Corporation, A. Jarvis and Company,
and Goldman and Company.
May 6, 1921
THE MONETARY TIMES
giiiiiiiiuiiiniiiiiiiiiiiiiiiiniiiiiiiiiinuujiiiiitnDiiitiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiniiiiiiiiiiniii^
I The Sterling Bank j
I OF CANADA |
ii iiiiiiniiiuniiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiniimiuuiiiiiiuiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiniiiniiiiiiuiniiiiiiiiiiiniiai
"Personal Banking Service" is, with us, a recognized
fact. Not only are we prepared to personally assist you
in matters of a financial or investment nature, but
we will gladly obtain any information you desire along
these lines which lies within our power to obtain.
Head Office
KING AND BAY STREETS, TORONTO
LONDON JOINT CITY AND
MIDLAND BANK LIMITED
The Right Hon. R. McKEN
s B ^,u»l^' "'"""hvo""'
"T. WOO.LEV
Subscribed Capital -
Paid-up Capital -
Reserve Fund -
Deposits < .:>-: jrsr. -sjOi
-£38,116,050
10,859,800
10,859,800
- 371,841,968
HEAD OFFICE : 5. THREADNEEDLE
OVERSEU BUNCH 6s t <G. OLD BROl
Atlanlic OtrUci : " A^uilonta " - Bcr
CLYDESDALE BA
C2
AFFILIATED BA
BELFAST BANKING CO LTD. THE
■JK LTD.
Common wealth Banl^ of Hustralia
wt.ilth OovL-mmtnt. and State Covcrn-
:rn Australia and Tasmania.
All classes of GENERAL AND SAVINGS BANK business are trans-
acted in all the principal cities and towns of Australia, Rabaul and
London.
Bankinit and exchanfle business of every description transacted within
the Commonwealth. Unjted Kingdom, Canada. USA., and .Abroad.
JAS KHI.I,. OKNISON MII.LKR,
D.inUy <;overn,.r lilJIl ('...vcrnor
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
TaOOrporExtdd
- - iS5>
Througtiouf
THE MOLSONS BANK
Capital and Reserve - $9,000,000
OVER 130 BRANCHES
M'
might be avoided if busi-
ness men would discuss their
difficulties with their bank
manager. For this purpose,
the experience of The Molsons
Bank is at your service.
EDWARD C. PRATT, General Manager.
Corporate Trusts
It is a common occurrence to
have stock offered for trans-
fer not in conformity with
law or unaccompanied by
proper authority. This fre-
quently occurs in the case of
stock belonging to estates of
deceased persons. Our
knowledge of the funda-
mental principles of trans-
fer prevents errors that might
be costly.
THE BANKERS'
TRVST OOMBWir
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
14
THE MONETARY TIMES
Volume 66
ADVANTAGES OF THE GROSS SALES TAX
Would be Both Practicable and Productive — Consumer Would
Pay, But Not Too Heavily
By V. Kenneth Johnston
AS one means of raising revenue it is understood that the
Minister of Finance is seriously considering the im-
position of a gross sales or turnover tax in accordance with
the recommendations and proposals formulated at a meeting
of Canadian merchants and business men at Toronto.
The gross sales or turnover tax has been advocated for
some months in the United States as a fair, practicable and
highly productive tax, the revenues from which, it is hoped,
will bridge the chasm between receipts and expenditures of
the federal government and provide a means of decreasing
the national debt. It has been estimated in the United
States that the imposition of a one per cent, sales tax will
produce a revenue varying, according to different estimators,
from two to six billions of dollars per year. While this
seems enormous and beyond the bounds of reason, the Finance
Committee of the United States Senate itself estimates the
yield of such a tax at four and one half billions. The tax
in Canada would, however, yield only a fraction of that
amount, the estimate given' by the meeting in Toronto, being
only some 120 millions. This amount for a population of
slightly over eight millions is fairly large but in no sense
could be considered oppressive since the intention is to re-
peal some of the minor business taxes and get the bulk of
revenue from customs, income taxes and the sales tax.
A Banker's Views.
Commenting on the proposals for the imposition of this
tax, it will be remembered. Sir Edmund Walker in his ad-
dress at the annual meeting of the Bank of Commerce, said;
"As against the 'luxury' taxes now happily at an end,
we have steadily urged a turnover tax of one per cent, on
sales of commodities. We are aware that criticism, only
however regarding certain details, of this form of tax have
been made in the Tentative Report of the Tax Committee
of the National Industrial Conference Board of New York,
but these have been answered by the Chairman of the
Business Men's National Tax Committee. One of the argu-
ments made in the United States against it is that any tax
which bears in the same rate upon the small earner as upon
the large is unfair. But this is accompanied by the belief
that a turnover tax would provide such a revenue as to dis-
place the excess profits tax. / believe it would only provide
a substratum of tax revenue, in which it is true that all
tvould join alike, paying in precise proportion to their ex-
pe7iditures for commodities, but the manner in ivhich those
ivho have larger, incomes would be taxed through the income
tax ivould provide for that difference in treatment which
modeom taxation recognizes. A small tax on the sales of
commodities and real property in Canada would hurt so
little, would be so fair, would be so easily collected, and would
produce such a very large sum, that to fail to levy it seems
excusable only if it can be shown to be impracticable."
"If it can be shown to be impracticable." a tax is im-
practicable if it does not bring about the results desired.
The first requisite is that it should produce^ a sufficient
revenue. This difficulty is more than overcome for one of
the chief objections to the one per cent, sales tax is the
huge amount of revenue it will produce. If the Canadian
public buys as often and as many goods comparatively as
the American public, on the presumption that a one per
cent, sales tax in the United States will produce four billions
of dollars, on an eight million to one hundred and ten mil-
lion proportion, the amount received in Canada from such
a one per cent, tax would be about two hundred and ninety
millions of dollars. This amount is extreme, however, and
in any event the amount to be received from such a tax
could be regulated by changing the percentage.
The second requisite is that it should be capable of
enfoi-cement and that it should be enforced conscientiously
against everyone who should pay it. Since the proposals
are for a tax of a definite, fixed percentage on all sales,
not as under the luxury taxes on some articles and not on
others, the opportunities for evasion are almost negligible.
Experience has shown on the other hand that in very
few instances has the merchant been willing to absorb a
tax in his sales price — where profits were large he may
have done so, thus cutting off the amount of the tax
from his profits but where profits were small and competi-
tion keen, such practices seemed to endow the Bankruptcy
Courts with a very drawing kind of magnetism. If such
practices were followed in the procees of imposing the
sales tax, the same results would follow and it is safe to
assume that the tax will be passed on and those who are
expected to pay it, will pay it.
The Main Objection
The greatest objection to the sales tax is that the
pyramiding of the tax on sales from the raw material man
to the ultimate consumer will result in an oppressive load
on the latter. After careful investigation, the Business
Men's National Tax Committee of the United States re-
ported, "The one per cent, turnover tax imposed on the
sales of cotton cloth, shoes and tools, will probably amount
to a pyramided tax of from 2% to ZV* per cent, of the
price paid for the finished article by the consumer." On
a pair of overalls retailing at $8.00 per suit, the tax to the
consumer, according to the same report, would be $.24782
or about 2.5 cents. Thus it can hardly be asserted that the
tax would be oppressve or that it would not produce a
sufficient revenue.
The sales tax can thus be said to be practicable and
capable of producing revenue. But there is another point.
Since war debts have to be paid, is it. not more I'easonable
that they should be paid in dollars of the same purchas-
ing power as those with which they wei"e incurred? If
we wait till 1924 or 1937 to pay off war debts after our
currency has been deflated, we or our descendants will be
paying about double what we would have to pay to cancel
that debt. The fair and reasonable course to follow is that
the increase m the national debt caused by inflation and
war activities should be paid in the same inflated cur-
rency; the sales tax will provide revenue in quantities and
thus surpluses for the purpose of decreasing that increase
in the national debt which has appeared since 1914.
Theoretically the sales tax can be proved capable of
producing all the beneficent effects promised of it. Practically
however, and in everyday working it will create for a
time much friction and discontent for it inevitably will
raise the price of everything we buy from two to three
per cent. On the other hand everyone living in Canada
will pay it directly or indirectly for everyone must live and
to live necessitates buying in one form or another for no
man can produce everything he needs. The result will be
an equality of taxation and a decrease in the buying of
luxuries and unnecessaries, a tendency toward thrift and
the purchase of Made-in-Canada products, all of which
have been vociferously advocated by leading economists
and financiers for the past year. If the sales tax is adapted
in Canada, we shall have taken a forward step in a sane
policy of taxation.
BANK OF MONTREAL NOTES STOLEN
A package, said to contain about $11,000 in Bank of
Montreal bank notes, was stolen from a mail sack in Port
Arthur, Ont., on April 30. The robber took advantage of the
temporary absence of the mail carrier to lift the "locked"
bag from the pile which was to have been despatched on
the east-bound express. The sack was discovered several
hours later not moi'e than 100 yards from the depot. It had
been cut open, but only the one package was missing. It is
stated the robber left behind almost as much currency as
he had taken away, which tends to the belief that he had ad-
vance information that the Bank of Montreal package was
to go out on the train. No arrests have yet been made.
May 6, 1921
THE MONETARY TIMES
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
head office. wevburn. saskatchewan
Branches in Saskatchewan at
Weyburn. Yellow Grass, McTaggart, Halbrite, Midale
Griffin. Colgate, Pangman, Radville, Assiniboia, Benson,
Verwood, Readlyn, Tribune, Expanse, Mossbank, Vantage,
Goodwater, Darmody, Stoughton, Osage, Creelman, Lew-
van, Froude and Ardill.
A GENERAL BANKING BUSINESS TRANSACTED
H. O. POWELL, General .Manager
HIomeBanki'Canada'
PAY WITH MONEY ORDERS
When you have to send money through the
mails buy a money order and you will then feel
secure that you have provided against any
chance of loss or misunderstanding. With the
money order you get a voucher that is as good
a receipt c\s your returned cheque w^ould be
Branches and Connections Throughout Canadc
Head Office and Eleven Branches in Toronto s J
LLOYDS BANK LIMITED,
HEAD OFFICE:
71, LOMBARD ST., LONDON, E.C. 3.
CAPITAL SUBSCRIBED
CAPITAL PAID UP -
RESERVE FUND
DEPOSITS, &c.
ADVANCES, &c.
iSS = £l)
S353, 444,900
70,688,980
50,000,000
1,731,987,765
755,395,865
THIS BANK HAS OVER 1,500 OFFICES IN ENGLAND & WALES.
Colonial and Foreign Department: 17. CORNHILL, LONDON, E.G. 3. London Agency of the IMPERIAL BANK OF CANADA.
The Agency of Foreign and Colonial Banks is undertaken.
Affiliated Bank* : THE NATIONAL BANK OF SCOTLAND LTD. LONDON & RIVER PLATE BANK, LTD.
Ailxiliary: LLOYDS AND NATIONAL PROVINCIAL FOREIGN BANK LIMITED.
TH€ M€RCHANT5 BANK
Head Office : Montreal. OF CANADA Established 1 864.
Capital P>id-up $10,029,622 Reserve Funds and Undivided Profits, $9,475,585
Total Deposits (31st January, 1921) $152,211,354
Total Assets (3Ist January, 1921)
$186,528,254
Board of Director* :
Preside
SIR H. MONTAGU ALL.XN
SIR F. Okr okk-Lewis, Bart.
Hon. C. C Ballantyne
Fakquhar Robertson
Geo. L. Cains
.Alfred B. Evans
IllOMAS Ahearn
LT.-t:oL. 1. R. MOODIE
Vice-President
Hon Lorne C Webster
E W Kneeland
Gordon M. McGregor
F. HOWARD WILSON
lOHN BAILLIE
Norman I. Oawes
Ross H. McMASTtR
General Manager - - DC. Macarow
Supt. of Branches and Chief Inspector : T. E. Mebrett
Gener,il Supervisor ■ - - W. A. Mei.drum
AN ALLIANCE FOR LIFE
Many of the large Corporations and 1 heir banking connection is for life —
Business Houses who bank exclus- yet the only bonds that bind them to
ively with this institution have done this bank are the ties of service, pro-
SO since their beginning. gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 38 Wall Street : W. M. Ramsay and C. J Crookall, Agents
London, England, Office, 53 Cornhill : J. B. Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
16
THE MONETARY TIMES
Volume 66
EXCHANGE QUOTATIONS
Quotations of exchange on European countries and the
United States as at May 5, 1921, with comparisons, are
given below. The Canadian figures are supplied by the
Imperial Bank of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
Ca.n., Apr. 28. Can., May 5. N.Y., May .5.
London, cheque . . 442.25 442.25 397^25
France 8.45 8.86 7.96
Germany 1.75 1.70 1.52
Belgium 8.52 8.85 7.96
United States ... 12-40 P- ll^ie p.
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways for the month of April: — ■
Canadian Pacific Railway.
1921. 1920. Inc. or dec.
April 7 $3,179,000 $3,617,000 — $ 438,000
April 14 3,083,000 3,635,000 — 552,000
April 21 3,085,000 3,624,000 — 539,000
April 30 4,064,000 4,710,000 — 646,000
Totals .-$13,411,000 $15,586,000 —$2,175,000
Canadian National Railway.
April 7 $2,103,435 $1,834,118 + $ 269,317
April 14 1,874,815 1,818,934 + 55,881
April 21 1,762,206 1,805,785 — 43,579
April 30 2,424,499 2,478,641 — 54,142
Totals $8,164,955 $7,937,478 + $ 227,477
Grand Trunk Railway.
April 7 $1,802,346 $1,982,648 — $ 180,302
April 14 1,670,960 1,459,147 + 211,813
April 21 1,634,7:35 1,480,563 + 154,172
April 30 2,241,310 2,084,198 + 157,112
Totals $7,349,351 $7,006,556 + $ 342,795
NO CHANGE IN STATE OF TRADE
R. G. Dun and Co.'s Trade Revieic of May 7 will describe
Montreal business as follows: The feature of the week is
the very light failure list, only three minor insolvencies being
reported in the district, with liabilities of about $36,000. From
the province of Ontario and eastward, remittances are fair
to good, though conditions in the pulp, paper and fishing in-
dustries affect collections in some quarters. In general
trade conditions there h&s been little recent change, and the
return to normal activity is a process of slow ^-owth. Manu-
facturing operations in heavy lines are undergoing some cur-
tailment, and the iron market shews little present life. Manu-
facturers of paints, varnishes, etc., report some improvement
in the demand, though under recent depreciated v".'!ues, some
lines are being sold at a loss. April showed an improved
movement in leather with sales being still fairly maintained.
In dry goods cautious buying is still the rule, but while
business is much below the figures of a year ago, the aggre-
gate is a little ahead of this date in 1919. Blouse and cos-
tume manufacturers continue to be well employed, but con-
ditions in the general clothing trade are not encouraging.
There is little indication of any improvement in the general
woollen business, and there are i-eports of sales at heavily
cut prices, and also of some consider?,'ble shipments in the
way of goods being returned to the manufacturers in Britain.
Fur travelers now out with full lines of samples of fall
goods are meeting with rather poor encouragement so far.
There is little new to be noted in groceries which show a
fair distribution. Sugars are easy s-t the late decline, with
some anticipation of a further price revision. Canned goods
are selling freely, but there appears to be a plethora of jams
in the hands of both wholesalers and retailers.
WEEKLY BANK CLEARINGS
The following are the bank clearings for the week ended
May 5, 1921, compared with the corresponding week last
year: —
Week ending Week ending
May 5, '21. May 6, '20. Changes.
Montreal $136,511,737 $150,024,365 — $13,512,628
Toronto 102,407,676 115,434,731 — 13,027.055
Winnipeg 51,754,883 57,169,753 — 5,414,870
Vancouver 15,236,427 18,211,016 — 2,974,589
Ottawa 11,533,914 17,453,440 — 5,919,526
Calgary 7,094,263 7,136,088 — 41,825
Hamilton 7,172,851 8,729,051 — 1,556,200
Quebec 5,542,484 7,949,762 — 2,407,278
Edmonton 5,738,595 5,950,297 — 211,702
Halifax 3,730,611 5,697,643 — 1,967,032
London 4,022,364 4,646,729 — 624,365
Regina 3,926,181 4,955,122 — 1,028,941
St. John 3,5.32,208 4,204,734 — 672,526
Victoria 2,530,242 2,789,800 — 259,558
Saskatoon 1,634,180 2,656,592 -— 1,022,412
Moose Jaw 1,289,534 1,705,564 — 416,030
Brantford 1,406,869 1,736,182 — 329,313
Brandon 744,413 923,037 — 178,624
Fort William 906,483 1,126,029 — 219,546
Lethbridge 745,401 933,003 — 187,602
Medicine Hat 427,515 489,920 — 62,405
New Westminster . 695,663 851,331 — 155,668
Peterboro 847,685 1,098,213 — 250.528
Sherbrooke 1,165,261 2,313,540 — 1,148,279
Kitchener 1,127,166 1,551,140 — 423,974
Windsor 3,440,795 3,386,178 -f .54,617
Prince .\lbert 397,912 542,762 — 144,850
Total $375,563,313 $429,666,022 — $54,101,709
Moncton 1,145,271
APRIL BANK CLEARINGS
The following are the Bank Clearings for the month
of April, compared with the same month last year: — ■
April, 1921. April, 1920. Changes.
Montreal $491,649,265$ 538,611,264 —$46,961,999
Toronto 433,936,360 463,804,088 — 29,867,728
Winnipeg 206,-396,710 188,183,383 + 18,213,327
Vancouver 63,126,307 71,765,397 — 8,639,090
Ottawa 34,279,406 41,675,434 — 7,396,028
Calgary 28,807,613 .34,126,554 — 5,318,941
H&milton 26,909,887 33,500,454 — 6,590,567
Quebec 27,193,361 30,3.39,053 — 3,145,692
Edmonton 20,862,182 31,903,710 — 11,041,528
Halifax 17,331,632 19,882,133 — 2,550,501
London 15,492,670 12,774,846 + 2,717,824
Regina 15,777,702 18,597,852 — 2,820,150
St. John 12,298,510 14,952,029 — 2,653,519
Victoria 10,.580,984 11,914,125 — 1,333,141
Saskatoon 7,805,360 9,812,068 — 1,916,708
Moose Jaw 5,677,317 7,379,639 — 1,702,322
Brantford 5,428,446 7,025,759 — 1.597,313
Brandon 2,929,937 3,167,430 — 237,493
Fort William . . . 3,434,932 3,591,254 — 156,322
Lethbridge 2,728,601 3,880,399 — 1,151,798
Medicine Hat . . . 1,765,.326 1,913,617 — 148,291
New Westminster 2,578,160 3,170,336 — 592,176
Peterboro 4,201,823 4,692,080 — 490,257
Sherbrooke 5,158,670 5,322,547 — 163,877
Kitchener 4,359,426 5,345,694 — 986,268
Windsor 14.407,894 13,742,647 + 665,247
Prince Albert . . . 1,525,718 2,066,412 — 540,694
Totals . ..$1,466,734,199 $1,583,140,204 —$116,406,005
Moncton 4,945,821
Kingston 3.371,689
May 6, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 18171
PAID UP CAPITAL - - - - wMtm ------$ 24,655,500.00
RESERVE FUND - - - - . —Vl^lM^ 16,750.000.00
RESERVE LIABILITY OF PROPRIETORS 4P^»W^1^1 24,655,000.00
AGGREGATE ASSETS 30th SEPT., 1920 ^^-iiScJ^j^piliV ...... $362,338,975.00
Sir JOHNIruSSELL FRENCH, K.B.E., General Manager
:t57 BRANCHES and AGENCIES in the Australian States. New Zealand. Fiji. Papua (New Guinea), and London. The Bank transacts every description
of Australasian B.inking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET. E.C.2.
Ar.rsTS: HANK OF .\10NTRI-:AL. ROVAL BANK 01-' CANADA.
ESTABLISHEX) 1875
AUoway & Champion
Bankers and Brokers
Member* of Winmpeff Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
George Ed
WARDS
F.C.A.
A
RTHLR
H
E
DW
ARD
F.C.A.
H
P
BRCivAL Edv
IS
W. POH
EROV Mc
RGAN
W
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tThoj
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A
GeoFPRBY Eo\
'AR
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Oswald
N.
Hnw
AROS
Ch
AR
LES
H
Whit
E
T
.1
Mac.namara
T. P. Ge
nr.
E
J.
L.
Atk
IN
sON
K
A
Mapp
W. A. L
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MER
Jo
UN
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Et
WARD
EDWARDS. MORGAN & CO.
CHARTERED ACCOUNTANTS
OFFICES
TORO.NTO .. .. CANADIAN MORTGAGE BUILDING
CALGARY
VANCOUVER
WINNIPEG ..
MONTREAL
CORRESPONDENTS
HALIFAX. N.S. ST. JOHN. N.B.
LONDON, ENG. PARIS, FRANCE
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK. U.S.A
For Less Service —
A Lower Rate
Heretofore, when you asked the long distance opera-
tor to connect you with a distant telephone, even
though you said to her, "An^fonc at that number ujHI
Jo," you paid the same rate as if you had specified
a particular pcnoii.
Now, a rate is in effect for this type of call (" Station-
to-Station " service) which is lower than for calls
where a particular person is wanted.
The operating cost and use of circuits involved in
handling a call for a particular person are much greater
than for a message where the calling party will talk
with anyone tvfio unsii>crs the ilistant telephone.
It isa real economy, when placing long distance calls, to
say whenever possible. "/Inyone at that number Tuill do,"
Evcrji Bell Telephone is
a Long Distance Station
THE BELL TELEPHONE COMPANY
OF CANADA
A Trust Company^ s
Charges
CONTRARY to popular belief, a trust company re-
ceives no more remuneration for its services than
does a private executor or trustee. 1 he amount
is based on a percentage of the funds handled and is
fixed by the Courts when the accounts are audited.
Consider the following advantages which a trust com-
pany offers you :
It is financially responsible.
It is always available.
Its officers have wide experience in the manage-
ment of estates and trusts.
It maintains an up-to-date accounting system
ensuring accuracy.
It furnishes statements to beneficiaries at regular
intervals.
It keeps all papers and documents in Safety
Deposit Vaults.
These and many other advantages can be secured at no
greater cost than private trusteeship. You can readily
see. therefore, that trust company service is the more
efficient and less expensive for you in the end.
We solicit jjour business.
IntcrvieJDcrs and eorrespontlcnls invited.
THE
Torot^toGeaekalTrusts
CORPORATIOiS
Head Office: Corner Bay and Melinda Sis - Toronto
THE MONETARY TIMES
Volume U(5
Canadian Loans Accounts Increased in March
But Call Loans Abroad Showed Large Reduction, According to the March Bank
Statement — Municipalities Are Borrowing Heavily — Deposits Changed But Little —
Cash Holdings Wera Lower, While the Ratio of Liquid Assets Also Decreased.
Deposits on demand . . . .
Deposits after notice . . .
Current loans in Canada .
Current loans elsewhere
Loans to municipalities . .
Call loans in Canada
Call loans elsewhere
Circulation 231,220,770
WITHIN the past few weeks American bankers have been
receiving g-old from all parts of the world, and in
such quantities that they have been wondering what to do
with it, with the result that the reserve ratio of United
States banks, as a whole, h&s risen rapidly. The March
statement of the Canadian chartered banks indicates that
our bankers have not been confronted with such a situa-
tion. In fact, their cash assets have been considerably re-
duced, as the following figures will show: —
Gold and sub-coin in Canada + $ 4,0.34,935
Gold and sub-coin elsewhere — 951,704
March,
February,
March,
Year's
Month's
1920.
1921.
1921.
inc. or dec.
inc. or dec
657,412,028
$ 561,578,474
$ 560,937.663
—14.8
— 0.2
1.197,719.570
1,318,855,482
1,319,142,196
-H0.2
-1- 0.07
1,322,267,030
1,266,235,381
1,280,982.873
—11.5
+ 1.1
183,642,658
163,044,476
164.093.930
—10.4
+ 0.6
62,992,675
67,719,881
73.229,646
-H7.8
-1- 8.9
128,23.3,310
112.680,497
113,818,308
—11.8
-1- 0.9
205,202,133
190,41.3,527
168,598,046
—18.0
^11.6
231,220,770
211,640,296
21.5,931,035
— 6.9
-1- 1.9
Total change
Dominion notes in Canada
Dominion notes elsewhere
$ 3,083,231
$19,0.32,011
354
Total change — $19,032,365
But a substantial increa.se in bank balances oflTset the
poorer cash position, and resulted in an increase in the ratio
of quick assets to liabilities to the public from 22.92 per cent,
in February to 23.83 per cent, in March.
After taking into consideration the reductions in security
holdings and the big drop in call loans abroad, the liquid
position of Canadian banks, as a whole, was considerably
below that of the previous month, the ratio of liquid assets
to liabilities to the public in March being 48.17 per cent., as
comp&red with 48.88 per cent, in February.
Last September, when the current loans were at their
peak, the ratio of quick assets was 22.44 per cent., while the
ratio of liquid assets was 45.92 per cent., so that it will be
readily seen that the bank's position in this regard has im-
proved considerably.
Turning to other sections of the statement shows that
loans, on the whole, are about the same as they were in
February. There has been a big reduction in call loans in
New York, and it seems that the proceeds have been used
for the demands from commercial enterprises here and for
municipal loans. The course of the current a.nd call loans
in Canada during the past thii-teen months is given in the
following figures: —
Current in Call in
Loans. Canada. Canada.
1920— March $1,322,267,030 $128,233,310
April 1,347,238,230 125,644,859
May 1,349,079,981 119,114,493
June 1,365,151,083 115,272,587
July 1,377,276,853 115,360,894
August 1,385,470,153 113,598,923
September 1,417,520,756 114,669,611
October 1,405,401,227 113,135,902
November 1,357,973,118 108,471,340
December 1,301,804,342 114,703,246
1921— January 1,264,490,463 112,474,318
February 1,266,23.5,381 112,680,497
March 1,280,982,873 113,818,308
The following figures form an interesting survey of the
trend of the principal loans accounts in recent years: —
Cui-rent loans Current lo&ns Call loans Call loans
Mar.
in Canada..
elsewhere.
in Canada.
elsewhere.
1916 .
..$ 770,139,526
$ 52,705,827
$ 81,747,512
$141,889,989
1917 .
. . 843,0.54,466
83,551,225
76,478,708
161,616,735
1918 .
. . 886,995,222
102,317,679
74,257,877
167,296,701
1919 .
. . 1,117,197,446
123,984,608
87,601,337
160,116,443
1920 .
. . 1,332,267,030
183,642,658
128,233,310
205,202,133
1921 .
. . 1,280,982,873
164,093,930
113,818,308
168,598,046
The heavy increase in advances to municipalities is ex-
plained by the budgets of the towns and the cities of the
Dominion. During the past few weeks, many municipalities
have struck tax rates showing increases over the previous
year. The dem&nd for funds is large, and loans are being
made in anticipation of tax collections.
There was very small change in demand and savings
deposits, as illustrated by the figures below. It is encourag-
ing to note, however, that the savings of the people ha.ve
not been impaired by the trying circumstances of the past
winter: —
Deposits Deposits
on demand. after notice.
1920— March $657,412,028 $1,197,719,570
April 652,918,760 1,209,573,990
May 615,957,229 1,229,073,515
June 659,622,583 1,243,700,977
July 639,415,025 1,253,170,443
August 640,361,707 1,261,647,732
September 677,286,905 1,270,194,097
October 687,651,781 1,271,275,751
November 686,754,094 1,292,009,008
December 657,496,742 1,293,007,488
1921— January 584,025,710 1,313,093,870
February 561,578,474 1,318,855,482
March • 560,937,663 1,319,142,196
Business depression has resulted in the reduction of
credit balances of our corporations during the past yea.r, but
this decline has been more than offset by the saving de-
posits. The following table shows this: —
March.
On demand. .^fter notice.
Total.
1916 $389,165,388 $ 738,169,212 $1,127,334,600
1917 448,151,528 888,765,698 1,3.36,917,226
1918 561,042,236 921,080,803 1,482,123,039
1919 566,797,268 1,037,851,766 1,604,649,034
1920 6.57,412,028 1,197,719,570 1,855,131,598
1921 560,937,663 1,319,142,196 1,880,079,859
Other deposit accounts show that, on the whole, the banks
had about the same amount of funds E.t their disposal as in
February. Deposits abroad decreased by about $5,500,000,
while balances due to provincial governments declined by a
similar amount. But the credit balance of the Dominion
government increased to $114,272,480, from $105,121,289.
May 6, 1921
THE ]\IONETARY TIMES
Make Your Money Work to Earn
More Money for You
Make it »
1 4% per
in a Savings Account instead of less.
You wouldn't refuse »n increase in your wafies. would you? Then
why refuse an increase in the interest on your Savings Account?
It's as simple as A B C.
The Union Trust Company will pay you interest at4 -^ per annum,
compounded re*{ularly. Come and open your accouht here. If you
cannot conveniently call, open your account by mail. Deposits
promptly acknowledged and withdrawals by mail accurately and
safely despatched.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS is..
Winnipeg TORONTO London. Eng.
Saskatchewan General Trusts
Corporation, Limited
Head Odice : Regina, Sask
Executor Administrator Assignee Trustee
Special attention given Mortgage Investments, Collections,
Management of Properties for Absentees and
ail other agency business.
BOARD OF DIRECTORS:
\V. T. MOLLARD. President G. H. BARR, KC., Vice-President
H. E. Sampson. KC. A. L. Gordon. KG. J. A. M. Patrick K C
David Low. M.D. \V. H. Duncan J. A. McBride
Chas. Willoughby William Wilson
E. E. .MLRPHY. General .Manager
Official Administrator for the Judicial District of Weyburn
(Trustee under Bankruptcy Act)
When selecting a Trust Company as an. Executor
choose one whose fixed policy is to give
FINANCIAL ASSISTANCE
To Estates being administered by it.
CAPITAL. ISSUKD AND SUBSCRIBED
PAID-UP CAPITAL AND RESERVE....
51,171,700 00
1,172.000 00
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trustee, Etc.
HEAD OHKICH: WINNIPEG, CAN.
Executors & Administrators Trust Compaoy Limited
HEAD OFFICE - MOOSE JAW, SASK.
Acts as Liquidator, Trustee, Executor, Etc.
Official Admmistrntor for the Judicial Dislricl o( .Moose Jaw. Authorized
Trustee under the Bankruptcy Act
W. A. MUNNS. .Manager
C'll
'U A,t,h
t.ss- ■ i:si,,t
.s.' C^lnary
Cnile Wester,, Cn,o„.
H.lniv
.•< Vniun H
I.I* of C
a„a,ia.
J.
H.
GOODWIN
LIMITED
FINANCIAL
AGENTS 1
Molsons
Bank Bu
ilding
CALGARY. Alta.
KAK.M
LAM)
CITY l'l«)l>
■;rtii-:s
.MOKTGA(;i-;S
M
XING PROI
ERTIKS
ESTATES .MAN.XGED 1
Rl-ZNTAL AGENTS
VALIATIO.SS
EIRE l.S'SL'RANCE (
Providing for Education
In times of prosperity niake certain that the education
of your children will be provided for in case of a reversal of
fortune. By placinj; a trust fund with us for investment,
an income can be provided to begin at any time and be
administered under any conditions you see fit to incorporate
in the agreement. Write us for particulars
Chartered Trust and Executor Company
46 KING STREET WEST, TORONTO
JOHN J. GIBSON. .Managing Dii
Your friend and
The Canada Trust Company
Should you wish lo have a friend act as executor
without burdening him with book-work and other
details this can be arranged by naming The Canada
Trust Company co executor.
Competent and careful accounting is essential to
the proper management of your estate.
The Cvnada Trust CoinPANY
" The Executor for Your Estate. '
. Chath.Tm. St Thomas. Ontario :
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
The Security
Trust
Company,
Limited
Head Office
Calgary,
Alberta
Liqnidalor, Trustee
, Receiver
Stock and Bond
Brokers,
Administrator, Executor.
General Financial Agents. |
\V .\1 CONNACHER
Ties and .\1.,
i.iKinj; Director |
When You Are Among Those " Next of Kin"
When a man di.s without leaving a will, the members of his family
Imil themselves in much confusion: What is to be done about the busi-
ness .' How are these securities to be divided ?
If that happens to you, or to any fr end of yours, remember that the
shortest cutout of the confusion is a petition to the Court for the appoint-
ment of The Canada Permanent Trust Co.
as admiristrator of the estate. A prompt settlement follows.— as
equitable to all parties as the law permits
The fact remains, however, that no settlement of an unwilled estate
can ever he satisfactory to everybody. Someone will have a lifetime of
thinkmR.— ■• I know Father would have planned things so differently."
The only way is to make your will, naming as your Executor
The Canada Permanent Trust Co.
Your family is then assured smoothness of settle
your estate, and that just division which only you c;
ecurity
The Canada Permanent Trust Company
THE MONETARY TIMES
Volume 66
Chartered Banks* Statement for March, 1921
LIABILITIES
NAME OF BANK
CAPITAL STOCK
Bank of Montreal
Bank of Nova Scotia
Hank of Toronto
The Molsons Bank
lianque Nationale
^lerchants Bank of Canada ..
Banque Provinciale du Canad
Union Bank of Canada
Canadian Bank of Commerce
Royal Bank of Canada
Dominion Bank
Bank of Hamilton
Standard Bank of Canada.. ■■
Banque d'HochelaRa
Imperial Bank of Canada ....
Home Bank of Canada
SterlinR Bank of Canada
Weyburn Security Bank
s
28.075,000
15.000.000
10.000.000
5.000.000
S.OOD.OOO
15.000.000
5.000.000
15.000.000
25.000.000
25.000.000
10.000.000
5.0(X).000
5,000.000
10.000.000
lO.OOO.OOO
5.000,000
3.000,000
1 .000.000
22.000.000
9.700.000
5.000.000
4,000.000
2.000.(100
10.170,0.0
3 OOlMJdU
K 000,000 I
15,000.000
20.400.000
•i.OOO.OIlO
S. 000.0110
a. 946,400
4,000.000
7.000.000
2.000.000
1.26fi.6IIO
655.700
22.000.000
9.700,000
5.000,000
4.000,000
2,000.000
10,108,582
2 987,649
8 000.000
15.000.000
20,299.140
6,000,000
4,998,630
3,911,934
4,000.000
7.000.000
1.959.499
1.230,037
524.560
129.138.700 128.720.031
9
22.000,000
18.000.000
6.000,000
5.000,000
2,300.000
8,400,000
1.300,000
6,000,000
15,000.000
20,216.575
7.000.000
4,849,315
4,882,449
4,000,000
7..500.000
500,000
450.000
22,S.000
35,030,517
19,120,816
6,704,093
5,823,628
6,215,305
14,438.217
2.540.877
9.913.419
26.155.729
36,071.847
8.363,331
5,399,276
6.124,5,55
7.884,064
12 9.^7.350
1.834.710
1,194.487
322 447
»
26,799,218
687,861
213,920
Provincial
Govern-
ments
$
1,399,395
477.345
565,715
9.249,187
141,232
6.770,508
262 951
598,343
3,084.587
2.232.724
180.531
496.981
3.305.179
37,380,433
3,033.084
12,333,100
2.019.699
3,283,744
.337,604
3,237,919
991,158
4.328,869
404.915
265.661
77,866
640,590
1,621.438
2,534,397
1,159,001
2,905,003
363,009
314,028
7,276
114.272,486
19,431,985
Depositsby
the public,
payable
on demand
in Canada
106,620.353
32,162,587
26,190,587
16,332,688
7.516,735
46,381,247
4,883,272
27,954,920
94,078.650
91.173.120
24,511,617
16,815.262
17.143.653
1 1 .222.089
27.312.803
6.015.107
3.731.462
891,511
i,819,043
i 650,575
?,976.418
),031.1,59
1.889.838
!,095,404
),339.402
),676.809
i,904,544
). 105,685
),754.743
1,120,661
?, 558, 931
1,582,590
i.958,851
i,450.094
1,962,346
1.265,103
7,135,067
30,358,603
136.308.484
1.801,764
560,937,683 1,319,142 196 300.181,609
LIABILITIES-Continued
Loans
from other
banks in
Canada,
including
bills re-
discounted.
Deposits
made by
and balan-
ces due to
otherbanks
in Canada
Due to
banks and
banking
correspond-
ents in the
United
Kingdom
Oue to
banks and
banking
correspond-
where than
in Canada
or the U.K.
1
Bills
payable
Accept
under
letters of
credit
Liabilities
not
included
under
foregoing
heads
Balances
due to the
Imperial
Govern-
Total
Liabilities
Aggregate
loans to
directors,
and firms
of which
they are
partners
Average
amount of
current
gold and
subsidiary
coin held
during
the month
Average
amount of
IX minion
Notes held
during the
the month
Greatest
amount of
notes in
circulation
at any time
during the
month
i
$
1.548,471
944,633
294.922
406,837
3,724
4,640,988
2,460
282,745
565.276
4,175
M7 1,083
116,690
1,665,516
»
51.967
32.544
106.303
52,033
4.224
76.986
S
1,525.018
2.020.019
1,058,144
453.351
412,207
511.422
48.615
4.480.759.
8.182.802
12,813,889
1,143.060
500,164
495,721
621,872
169,425
514,838
S
1,100,275
390.228
«
4, 170,142
520,337
143.616
186.097
7,805
790,756
2.579 i 44
8 807.672
12 833.353
900.471
383,183
369,765
25,206
91,003
1.185,021
391,722
5,543
505,473
9
476,899,937
202,435,069
83,259,264
78.181,688
69,429,829
165,114,016
39,370,899
129,815,624
392,075,654
501 .340,235
111,875.337
71,610,479
78,512,522
64,695,439
110.120,931
24,510,812
20,432,623
2,870,253
8
1.099.134
1.106.952
369.637
294,630
605,339
628,096
S
30,086.735
12.041,203
1.019.217
613.732
434.600
4,213.859
142,604
1,056.404
21,133,000
14,033.999
2.073.000
896,205
1.739.745
493.794
1. 755.595
190,620
115,816
19,701
«
40,621,516
15,029.851
7,481,682
3,982,222
3,982.100
7.030,394
281,504
12,414,350.
25,671.000
19,384,346
8.590,00(1
2„581-,429
4,992,440
2,337,683
9,742.573
2,163.924
933,537
111,324
*
20.042,801
7,155,100
4SO,6oo'
97,829
" " 57,440
2.363.813
6.515.513
184.780
3,978
143.015
40,077
2,964 767
3,893,080
2.227,196
1,107,966
19.030
46 163
420.592
16.087
11.239
1.605,317
1,158,879
621,350
920,875
840,039
360,486
441.930
155,737
587,957
317,067
17,208
9,913,419
17.844
47,399
604.106
37,322,593
8,697,691
5,753,486
6,290.825
1,358.229
2.661
265,080
13,467,900
3
4,341
37,173
1,917,145
6,892
1.225,630
32,7ii
34.984,017
330,642
13,073.490
8.065.410
1I.!59,S78
,32,221,442
2,985,695
2 622.550,611
11,130.853
92,659,829
167.331,875
215,931,035
Capital and Reserves
No change was recorded in the authorized capital, but
the additions to paid-up capital and reserve w^ere fairly sub-
stantial, as follows: —
Capital
subscribed.
Merchants $ 300
Standard 21,600
Provinciale
Royal
Hamilton
Home
Sterling
Totals $ 21,900 $137,318 $ 64,532
Letters of Credit
There are three other factors deserving of considera-
tion. One of these is the "letters of credit" account. The
liabilities of customers in this regard at the end of March
totpJled $32,221,442. The trend of this account in 1920 was
between forty-two and fifty millions. With the falling off
Reserve.
$ 37,72';
26,600
20.5
in our buying abroad and in the curtailment of opei'ations of
Canadian business men in the foreign field, there has nat-
urally been a lower demand for the convenience offered by
our banking institutions.
The greatest amount of notes in circulation showed a^n
increase for the month of nearly 2 per cent. This would
seem to reflect an increase in buying movement, although,
on the other hand, there is the fact that as a general rule
in March, most of the lumbering camps are paid off.
As regETds security holdings, the only account to show
any change of importance was that of "Canadian municipal
and British, foreign and colonial." There was a decline of
about $6,500,000, which can be largely attributed to the pay-
ment of the monthly instalment by the British 'government
on their loan, in accordance with the terms made last year.
Permission has been granted the city of Winnipeg to
appear before the Privy Council with its case against the
decision of the Public l^tilities Commission authorizing in-
creases in street car fares. The Manitoba Appeal Court,
which upheld the commissioners' ruling in recent judgments,
granted the permission.
May 6, 1921
THE MONETARY TIMES
The Saskatchewan Mortgage and
Trust Corporation Limited
{Trustee under Bankruptcy Act)
offer you the benefit of their experience as
EXECUTORS, ADMINISTRATORS, TRUSTEES,
MANAGEMENT OF ESTATES, ETC.
MONEY TO LOAN ON IMPROVED FARMS
AND MODERN CITY PROPERTY
REGINA
SASK
A BOND FOR $100
SlOO or more invested in a "Canada Permanent" Bond
for ONE YEAK will earn interest at FIVE PER CENT, per
annum, payable half-yearly. A higher rate is paid on longer
term investments. Interest befiins the day the money is re-
ceived, and the Bond will be made to become due on any date
the investor desires.
The Bonds are issued in small sums and for short terms
to enable those of moderate means to obtain a high grade se-
curity yielding a fair return and still have their funds avail-
able within a reasonable time. Small amounts should not be
allowed to remain idle when they can be employed to such
good advantage as by investing them in these Bonds.
The Corporation has been issuing these Bonds for near-
ly half a century. They are a first charge against its assets,
which amount to over -^SS.OOO.OOO
Canada Permanent Mortgage Corporation
1-1-18 TORONTO STREET - - TORONTO
Established 1855
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
Masonic Temple BuildinK, London. Canada
Interest ai 4 per cent, payable half-yearly on Debentures
T. H. PURDO.M. K.C. President NATHA.MEL .MILLS. .Manager
London and Canadian
Loan and Agency
Co., Limited
lisTABLISlllli lS7:f
SI YONGE ST.
TORONTO
Paid-up Capital, Sl.iiU.OOO. Kcst-r
vc Fund. ?l,(Xlo,iKin Tota
Assets. *,i.0li7.-.'.s:f
Debentures issued.
Best current rates. 1
Authorized Trustee I
toha and Saskatchew
one hundred dollars and upwards,
nterest payable half-yearly. These
ivestment. .Mortgage Loans made
one to live years.
Debentures arc an
in Ontario. .Mani-
WILLIAM WKDU.
Secretary
W. C. NOXO.V. .M;
natiing Director
THE
Ontario Loan
& Debenture Co.
LONDON Incorporated I«70
C.M'ITAL And Reserve Find
Canada
»4, 000. 000
5-;i
SHORT TERM (1 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
5^1
JUHN McCLAKV.
A M. SMART, .Manage
r^VER 200 Corporations,
^'^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office. No. 13 Toronto Street
Capital Account. W:«t.SSO.OII Ktscive l-und .•Ti:mt,OU«.<MI
Total Assets. »:I,I<1S,.-.«NI.UII
President. WKLLINGTON 1-KANClS. Esy.. K.C.
Vice-President. HERBERT LANGLOIS. Esq.
Pebentures issued to pay 5^%. a Legal Investment for Trust Funds.
Deposits received at i% interest, withdrawable by cheque.
Loans made on improved Real Estate on favorable terms.
WALTER GILLESPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclnlyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. f . Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inquiries Incited
General Manager Lieut. -Col. G. H. DORRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any otber fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Uauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office
Swift Current, Saskatchewan
TOHN R LITTLE. Managing Director
THE MONETARY TIMES
Volume 66
Chartered Banks' Statement for March, 1921
ASSETS
\AMH OK BANK
Current Gold and Sub-
sidiary Coin
Dominion Notes
2
V >
1
Notes
of
other
banks
Cheques
other
banks
i.i §
-d". o
•s s^
-j3^
Depsits
made
with
andbal.
due
from
other
banks
Canada
Due
from
banks
and
banking
corres-
pond'ts
in the
United
KinR.
Due
from
bks. and
In
Canada
Else-
where
Total
In
Canada
Else-
where
Total
bankinf(
corres-
pond'ns
else-
where
than in
Canaaa
and U.K
1
i
t
Bank of Montreal
Bank of Nova Scotia
Bank of Toronto
The Molsons Bank
Banque Nat-onale
Merchants Bank of Canada..
Banque Provinciale du Canada
Union Bank of Canada
Canadian Bank of Commerce
Koyal Bank of Canada
Dominion Bank
Bank of Hamilton
Standard Bank of Canada...
«
28.003.246
8.86S.777
1.026.632
606.339
437,117
4.217.299
163,101
1.049,761
9,126.689
6.172.455
2.0»2,653
918,427
1.766.195
516.365
»
1,087.667
2,320.975
651
2,581
443.770
5.634.774
8,157.649
821
«
29.090,913
11,189,753
1 ,026,632
60«.33i)
437,768
4.219,880
163,101
1 493,532
14.761,463
14,330,105
2.093,474
918.427
1.766.195
516.365
1.769.743
2011,304
127,437
19,951
S
44,735.635
12.141.974
7.376,332
4.467,333
4,286,036
7,167,416
341,951
12,338.224
20,582,083
19,686.460
8.786,451
3.955,223
5.846,776
2,500,499
8,958,625
1,636.231
1.043.326
1 10,208
t
4,976
3.925
577
4,801
2,391
29
S
44,740,611
12.145,899
7,376,332
4,467.333
4,286,036
7,167,416
341,951
12,338,801
20.586.885
19,688,851
8,786,480
3,955,223
5,846,776
2,500.499
1.038.166
496.413
254.834
235,000
100,000
450,000
114.315
365.000
908.245
860.000
311.862
225.000
175,000
200,000
9
15,200,000
U.OOO.OOC
2,500,000
3.161,694
3,738 16!
620 580
»
16,232.703
9,822,197
4.538.636
$
«
3,300,254
1,266,381
S
30.209,663
2,900,055
629,960
1
s
7
8
0
II
12
VI
3.000,000' 644.117 3.328,743
5,000,000! 699,915 2,521.630
5,000,000 1.059,908 8,302.316
514.057 2.260.466
3.500,000 810,390 6.387,047
13,50C,0m: 3.273.890114.717,879
19,000.000136.557.279:22,342.768
2.800.000 1.039,794 5,634,705
800.000, 578.424 2.705,463
2.600.000, 325.2021 3.331 „596
4.400 000' 1,028,6271 2,584.267
18,893
1,481
10,220
5,143,476
100,210
12,115
18,119
235
334,955
' 580,528
325,137
i92.229
165,373
1 ,625,984
189,887
5,031,647
183,987
9,814
207,815
210,729
1,377,323
825,183
1.441.700
224.826
4.291.059
9.411,638
27.219.306
1.304.377
1.157.680
1.147,249
514,338
15
Imperial Bank of Canada
1.769.743
8,958,625 t 381.665
1,636,231 1 108.000
1,043.326 65.C00
110,208 22,196
7.002.533
1 .286.590
271,301
204,891
21.301
5.231,941
722.691
Tl3.m.',. "...
400,902' 645,482
118,5971 94,300
7,229' 28.924
1,610,194
886,302
'Sterling B.ink of Canada 127.437
Weyburn Security Bank 19.951
134,377
18
268.046
Total
67.082.491
17.648,888
84,731,382
165,960.783
16,699
165,977,483 6,310,696
95 302,533
55,834.121
111401,907
7,015,006
13,477,943
85,368,833
ASSETS— Continued
Pro-
v^incial
Govern-
where
than in
Canada
'c"e°edrn'
30 days)
Other
is
current
>"o
loans
and
o =
discounts
■*^'o
where
2 *j
than
M S
is
-^
Pro-
vincisl
Govern-
ments
Loans to
cities.
towns.
:ipalities
and
school
districts
Over.
due
debts
Real
estate
other
than
Mort-
gages
on real
estate
sold
by the
Bank
Liabili-
premises
ties of
at not
cus-
more
tomers 1
than
under
cost, less
letters
amounts
of
(if any)
credit
written
as per
off
contra
ncluded
under
the tore-
going
1 14,781,
2 14.660,
3 7.667,
4l 5.341.
5' 5.055,
6' 9.026,
7| 2.691,
fi 4.9SI,
9| 13.564,
ID 12.922
III 7.IK^
13! 2,4,VJ
12 5 0411
14i 2,21X,
151 6,007,
Ifcl 1.704,
17l 9.217,
18 267,
33,415.057
19.267.000
6,691.213
6.047.072
7.373.6-!;
Il3,462,87l
,584 j 6 744 317
,282,12,8,58.104
,307 18,494,249
214 l>l214,R9n
10 111=;
647 1 9,090.882
104! 1.218.849
972 2.819,340
200,814
4,389,647
3,741,019
637,55:
709,265
899,173
3,733,422
2,441.720
3.581.990
5,996,584
14,710.514
1,804.243
402,246
840.960
131.079
412.949
1.610,612
384,114
1.926.326
7,071,477
6,885,601
7,289,610
5,043,320
7,765,730
7,343.310
4.865.394
23.80S.45I
16.045.969
7,148,685
6.622.747
2,817.937
4,268,605
3,7,53,496
1 ,039.086
122.564
83,744,997
17.826,621
500,000
1,976,153
21,769,727
34.597,046
3,064,890
198,245,558 15.627.643
90.113.383 14.349.990
51.572,387
48,982.934
38,825,053 ■
107,330,452 1. 359,34'
13,572.327
68.%5.27l! 4.517.340
600,000
1,000,000
124.668184 184261730 46.417,092 113818308 I68,.598.046 1,280,982,873 164093930
203,769.651
166,804,205
64.294,672
46,547„359
53,118.766
41,768,115
62,749,431
15,549.755
6,575.559
,2,197.985
23.754,31
103.141894
1,318,617
1,791,486
7,237,362
610.101
t
s
18,885.34C
545,041
4,595.211
426,08i
1,277,224
416.298
l,533,72fl
363.03(
1,032.358
27.70(
2,539,925
773.165
1,488,415
157.64S
5,014,602
253.187
11.428,024
684.73S
6,545,262
444.098
1,775,572
178,677
3,836,002
205.017
l,410,57«
378,221
3.042,990
767.109
8,344,182
690,829
304.221
142,735
54,661
8,834
121,350
57,126
73,229,646
6,519,540
84,142
357.031
619,729
7.459!
162.489
527.868
981.557
5.373'
691,077
195,755
522,631
63,434
13,929,599 73,229,646 6,519,540 4,390,9';2 3,008,573 63,834,165 32,221,498 3,876,282
' s
s
49,795
5.500.000
174.361
6.141,751
3.566,371
31.582
3,055,1%
380.2S4
1,818,123
686.0'19
4.142.975
12.758
411.482
341,257
1,534, IfiO
178 093
7,334.178
41,844
9.705,809
18,936
5,768,473
190.311
3,104.765
59.300
1,631,449
310,973
3.033.691
413,104
5,317,368
96,200
1,052.622
2,750
512.2.37
20,956
203,515
3,008,573
63,834,165
4,570,142,
520,393
143,616
186,097
7,805
790,756
2 579,144
8.807.672
12.839.353
900,471
383,183
369.765
25,206
91,003
6,892
439,068
62,400
290,264
269,554
47,247
55,323
95,308
337,945
354,113
145,887
86 224
699,743
247,658
357,805
63.641
528,101,391
231,814,756
96,304,.506
88.066,151
74,744,428
183,883,373
44,068,142
144,381,136
424,772.552
543.748.151
125,883.361
82.064.836
88,004,946
73,604,612
126,642,949
27.091.859
22,397,147
3,696,198
Of the deposit in Central Gold Reserves S 1 1 .502 533 is in gold i
I Dominion Notes,
J. C. SAUNDERS, Dei>uty Minister of Finance.
MARITIME MANUFACTURERS' ANNUAL MEETING
Criticism of freight rates, which one speaker said made
it impossible to do business with the rest of Canada, was one
of the features of the annual meeting of the Maritime branch
of the Canadian Manufacturers' Association, held in St. John,
N.B., on April 28, J. E. Walsh, general manager of the Asso-
ciation, reviewed its history and work.
A. D. Ganong said that with the manufacturers it is not
a question of paying dividends but of saving capital invested.
He paid a tribute to his own employees and said his com-
pany had not had any labor trouble. He agreed that the
present freight rates put the east under a great handicap.
No poor goods are made in the east, because of the superior
intelligence of the workmen, and the industries here have
prospered accordingly, but lower rates should be forthcoming.
The home market, which is after all the best market, must be
developed. He urged employers to do more for their men.
W. S. Fisher said the time had come for a concerted action
to bring freight rates back to the pre-war level and give in-
dustry a chance. Industries must produce more than we can
use and seek a good market for the surplus. The balance of
trade in favor of the United States over Canadian was $400,-
000,000. If we went in for more exports this would not be so.
There is a great future in store for these provinces, but they
must get busy. A. M. Belding said he thought English
capitalists should be called on to help develop Canada's
natural resources. The press is always ready to give
publicity to anything that will tend to help the country.
A meeting of thirty-five or the agents of the New York
Life, was recently held in Winnipeg, the visitors represent-
ing Saskatchewan, rural Manitoba' and parts of western
Ontario. Charles H. Langmuir, of New York, superintendent
of agencies, delivei-ed several addresses to the agents.
May 6, 1921
THE MONETARY TIMES
DIVIDENDS AND NOTICES
DEBENTURES FOR SALE
BANK OF MONTREAL
CITY OF SASKATOON
Notice is hereby given that a DIVIDEND of THREE per
cent., upon the paid-up Capital Stock of this Institution, has
been declared for the current quarter, payable on and after
WEDNESDAY, the FIRST DAY OF JUNE next, to Share-
holders of record of 30th April, 1921.
By order of the Board,
FREDERICK WILLIAMS-TAYLOR,
General Manager.
Montreal, 22nd April, 1921. 542
THE ROYAL BANK OF CANADA
DIVIDEND NO. l.?5
Notice is hereby given that a Dividend of Three per
cent, (being at the rate of twelve per cent, per annum) upon
the paid-up capital stock of this bank has been declared for
the current quarter, and will be payable at the bank and its
branches on and after Wednesday, the first day of June next,
to shareholders of record at the close of business on the 14th
day of May.
Bv order of the Board,
Montreal, Que., April 15, 1921.
C. E. NEILL,
General Manager.
535
THE CANADIAN BANK OF COMMERCE
Dividend No. 137
Notice is hereby given that a dividend of Three per cent,
upon the capital stock of this Bank, being at the rate of
twelve per cent, per annum, has been declared for the quarter
ending 31st May next, and that the same will be payable at
the Bank and its Branches, on and after Wednesday, 1st
June, 1921. The transfer books of the Bank will be closed
from the 17th May to 31st May next, both days inclusive.
By Order of the Board,
Toronto, 22nd April, 1921.
JOHN AIRD,
General Manager.
Debenture Issue— §204,000
Sealed tenders will be received up to 12 o'clock noon,
Monday, May 23rd, 1921, for the purchase of the following
sinking fund debentures of the City of Saskatoon, viz.: —
$ 92,000 30 years, 6%
13,700 30 years, 5%
71,000 20 years, 6%
27,300 15 years, 6%
$204,000
The 69'c debentures are dated July 1st, 1921, and the
5% debentures are dated April 1st, 1917.
Principal and interest are payable in Canada only.
Tenders to be addressed to the City Commissioners and
marked on the outside of envelope, "Tender for debentures."
The highest or any tender not necessarily accepted.
Further particulars on application.
Saskatoon, Sask.
A. MacG. YOUNG, Mayor.
.•\NDREW LESLIE, City Commissioner.
543
TENDERS FOR DEBENTURES
Tenders will be accepted up to 2 p.m., June 11th for
§10,000.00 Vermilion Municipal Hospital District No. 2 de-
bentures. This debenture is 'to complete over-expenditures
made in construction and equipment of Hospital. Term of
debentures twenty years, repayable in equal annu&l pay-
ments of principal and interest. Rate of interest seven per
cent., and is a debt on the District at large.
Highest or any Tender not necessarily accepted.
Apply to,
D. TAYLOR, Secy.-Treas.,
Vermilion Munic. Hos. Dist. No. 2.
Vermilion, Alta. 549
545
Condensed Advertisements
■• Positions W antc-J.-- :tc per word : ;ill otiicr condens.J
.>c. per word. Minimum charKe for any condensed ad
per insertion. All condensed advert'
style. Condensed advert!
charged for them, are payabl
rtiscment, 65c.
form to usual
,., „.. account of the very low rates
dvance ; 50 per cent- extra if charged-
UNION BANK OF CANADA
DIVIDEND No. 137
Notice is hereby given that a dividend at the rate of
lO'r per annum upon the Paid-up Capital Stock of the Union
Bank of Canada, has been declared for the current quarter,
and that the same will be payable at its Banking House, in
the City of Winnipeg, and also at its branches, on and after
Wednesday, the first day of June, 1921, to shareholders of
record at the close of business on the 16th day of May next.
The Transfer Books will be closed from the 17th to the
31st day of May, both days inclusive.
By order of the Board.
H. B. SHAW,
General Manager.
Winnipeg, April 19, 1921. 547
SECRETARY-TREASURER, age 30, of large company
in British Columbia, desires change and wishes connection in
similar capacity with well-established company anywhere in
Canada or United States. First-class accountant, with excel-
lent credentials; the more responsibility to be assumed, the
better. Prepared to report immediately for interview for
any legitimate proposition. Apply by wire or letter to H.
Anscomb, 1921 Government St., Victoria, B.C. 546
WANTED
GUARANTEE AND CASIALTY DEPARTMENT MAN-
AGER for well-established Canadian Company, Head Office,
Winnipeg, entering above business. Must have thorough
Head Office knowledge of various classes, including good
Underwriting experience. State age, experience and refer-
ences. Apply Box 409, Moiiclnry Times, Toronto.
24
THE MONETARY TIMES
Volume 66
NEW BRUNSWICK FUNDS RAILWAY DEBT
Legislature Asks Dominion to Talie Over St. John Valley
Railway — Summary of 1921 Legislation
/"iUT of 102 bills presented at the session of the New Bruns-
^-^ wick legislature, which closed on April 16, only four
failed to pass, the government measure for the superannua-
tion of civil servants being one of them. The late measures
included an act to increase the sessional indemnities of mem-
bers, and E.n act providing for the sale of the old Govern-
ment House property to the Dominion government for $50,-
000, this sum to constitute a trust fund and the interest
thereon applied to the maintenance of an official residence.
Resolutions were also passed demanding that the federal
government take over the St. John Valley Railway, con-
structed by the province at & cost of $7,000,000, and regard-
ing the rights of the maritime provinces in freight rates.
In a discussion of the Provincial Loa.ns Act, Premier
Foster stated that it had been necessary to sell one or two
6 per cent, loans under par. As the act only authorized the
payment of 6 per cent, the legality of the issues had been
questioned, and an amendment was therefore desirable.
Regarding the water powers on the St. John River at
Grand Falls, the Grand P'alls Co. is granted two years' ex-
tension under condition that by May 1, 1923, they shall have
expended $150,000 on actual construction work, and a pro-
vision has been made whereby a preference will be given
consumers in New Brunswick desiring electric energy from
the Grand FaJls and the matter of rates to be charged for
same, etc., will be under the control of the Public Utilities
Commission.
A bill to incorporate the Albertite and Oil Shale Co. of
Canada, Ltd., brought about a general discussion of the
rights in shale, natural g&s and oil in Albert and Westmor-
land counties, a^nd it was pointed out that the company were
desirous of going on with their development by the retort
process and their representative expressed a willingness to
have the public utilities committee fix the terms upon which
the New Brunswick Oil Co., Ltd., should supply the natural
gas required by the company for carrying on its work.
An amendment to the Corporations Tax Act of 1920
requires every telegraph company to pay 1 per cent, of its
receipts within the province, and limits the license or special
tK'X by cities, towns and municipalities to the sum payable
at the time the Corporations Act was passed. An Act re-
lating to the Board of Public Utility Commissioners, pro-
vides that every corporation operating a public utility shall
annually make a return to the provincial secretary-treas-
urer, showing & statement of assets, liabilities, receipts and
expenditures; also that in future copies of orders by the
board shall be forwarded to the provincial secretary-treasurer.
Acts were also passed to regulate the tolls of the South-
west Boom Co., to incorporate the Port Canada Docks Rail-
way, to authorize the municiprJities of Kent and Albert to
make temporary loans, and for fire prevention in Lancaster.
Valley Railway Debts Funded
Explaining the act respecting the St. John and Quebec
Railway, Premier Foster stated th&t the first clause of the
bill provided for the funding of debts incurred during the
construction of the road. This would include $134,449 paid
out of consolidated revenue, for interest during construction,
and $42,000 outstanding on October 31, 1920, for capital ex-
penditure, besides $73,000 needed to clean up outstanding
accounts. The maximum amount to be bonded, therefore,
under the first clause, was $250,000. There was £■ suit pend-
ing with the Bank of British North America in which $33,-
000 was involved, and claims not yet ai-bitrated upon
amounted to $25,000, and when provision was made for those
amounts he hoped it would be the last.
The second clause provided for the funding of the net
interest charged up to October 31, 1920, amounting to $252,-
351, which amount had been paid by the province after its
share of the earnings had been deducted. The third clause
would provide for the balance of three years' interest at the
rate of $250,000 per year, making a total of $750,000 up to
the end of 1922.
He sK'id that the time for the construction of the line
from Centreville to Andover would expire on December 31,
1921, and the agreement with the Dominion government for
a subsidy would expire at the same time. Under the bill it
was proposed to extend the time until December 31, 1923.
He would say frankly that he had no political object in mak-
ing the extension, but he thought it advisable to have it
done in case something arose which would make it necessary
to extend the road.
With respect to running rights from Westfield to St.
John, he had been under the impression prior to the open-
ing of the line for traffic that the Dominion government
would make the necessary arrangements. Negotiations had
been carried on, but without result. When the line was
opened in October, 1919, the provincial government had to
become responsible to the C.P.R. for £• reasonable rental. A
tentative agreement was drawn up and the rental was fixed
at 3 per cent, on the value of the railway from St. John to
Westfield, which the company placed at $3,000,000. That
made the annual rentaJ $90,000, which the government con-
sidered excessive, and the C.P.R. evidently thought so too,
for it consented to a modification. The C.N.R. authorities
refused to pay over any portion of the earnings to the pro-
vince until the running rights had been provided for. He
had met President Beatty, of the C.P.R., in Montreal, whom
he had found very reasonable and disposed to a>ct fairly with
the province. After going fully into the matter President
Beatty consented to accept a fee of $2 per train mile for the
fourteen odd miles of road. As there were four ti'ains a day,
it brought the rental up to $35,000 per annum. The presi-
dent had refused to enter into an agreement for a.ny lengthy
period, the best he would consent to was a term of three or
six months.
A bill introduced by Joseph Steele, Labor member for
Cape Breton, asking for a commission to inquire into old
age pensions, health and unemployment insurance, was given
the three months' hoist, as relating to matters coming under
federal jurisdiction.
POST-OFFICE SAVINGS BANKS
Deposits in the post-office savings banks showed an in-
crease in February of more than $70,000, but withdrawals
increased from $759,373 in January to $898,940, thus reducing
the amounts at the credit of depositors by a similar amount.
The following are the February details: —
Dr. FEBRUARY Cr.
Deposits in the Post Office
ings Bank during month.
INTERE
from 1st April to
date of transfer. . .
Deposits transferred from the; 1
Post Office SavinKs Bank of the; j
United Kingdom to the Post
Office Savmgs Bank of Canada 3,407.39
NTEREST accrued and made prin-
cipal 31st March 1920, in excess;
of Estimate 1 1
actual — .-
Estimate.' j
allowed to Depositors!
on accounts closed during;
month l3„'iJ3.49-4.0J
Balance at the credit
of Depositors' ac-
counts on 'inth
Feb.. 1921
May 6, 1921
THE MONETARY TIMES
^IIIIIIIIIIIIIIIIIIIMMIIIIIMIIIIIIIIiniMlllllinilllllllMIIIIIIIIUHIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIillllllllllllllllllllllllllllllllllllllllllllllllllH
I CHARTERED ACCOUNTANTS I
?<iiiiiiiiiiinuMMiHHiiiiiiiiiiiiiiiiiiiiiniiiMiiiiiiiiiiiiiMiiiiiMiiMiiiniiiiiiMiiiMiiMiiniMMiiiiiiiiinniiiniiiiiniiiiiiiMiiiiiiiiiiiiiiiiiiiiiiiiiiiiii~
KENNETH BOWMAN
Chartered Accountant
(Successor to Baldwin, Uow it BowmanI
EDMONTON
ALBERTA
CHARLES D. CORBOULD
Chartered Accountant and Anditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
Correspondents at Toronto. London, EnR..
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada Bide.. Saskatoon, Sask.
\V. A Bawiikv. C.A. iF.C.A. EnRland and
BAWDEN, Kli)r& CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Branch at Naoaimo, B.C.
Telegraphic and Cable Address:
•■\etlw:ih-- Victoria. B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER. B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON ONTARIO
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Chambers
Winnipeg, Man.
Arthur E.
Phillips
& Co.
Chartere
d Accountants
508-509 Electr
WINNIPEG
Cahle Adi
ic Railway
rcss— " L'nra
Chambers
Man.
■cl."
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS
24 Kint Street West - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Winnipeg, Toronto, Saskatoon, Moose Jam
Montreal, New York, London, Eog.
SERVICE
Thorne, Mulholland, Howson & McPherson
CHARTERED ACCOUNTANTS
Specialists on Factory Costs asm PRonicri
Phone 3420 Bank of
M
Hamilton Bids-
TORONTO
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
GEO. O. MERSON & COMPANY
CHARTERED
TeUphoi
LUMSDEN BUILDING
ACCOUNTANTS
e Main 7014
TORONTO, CANADA
F. C.S. TURNER & CO.
chartered Accountants
TRUST 4 LOAN BUILDING, WINNIPEG
CLARKSON, GORDON & DILWORTH
Merchants Bank Bide
Chartered Accountants. Trustees,
Receivers. LiQuidators
IS N\'ellin8ton Street West
Established ISW
RUTHERFORD WILLIAMSON & CO.
Chartered Accountants. Trustees and
Liquidators
S6 Adelaide Street East. TORONTO
B04 .McGiLi. Building. MONTREAL
Cable Address-" VVILLCO."
Represented at Halifax. St- John, Winnipeg,
THE MONETARY TlilES
KEINSTATEMENT OF LIFE POLICYHOLDER
(ireat-VVest Life Required to Pay Under Disputed Policies —
Notice to Insured of Reinstatement Not Necessary
" A LIP'S iiisuianc'c policy contained the following pro-
■t*. visions: (1) If default be made in the payment
of the first or ;iny subsequent premiums or any part thereof,
or of any note, cheque or other obligation given on account
thereof this policy shall be void; (2) should this policy lapse
it will be reinstated at any time upon the production of evi-
dence of insurability satisfactory to the company and the
payment of all overdue premiums and any other indebted-
ness to the company upon the policy with interest at the
rate of 6 per cent, per annum compounded annually from
the date of lapse."
In the case of Clarke vs. Great-West Life Assurance
Co. the court held, on the facts and in view of the above
provisions in the policy that when the company, through
its agent, was satisfied as to the health of the insured at the
time of payment of overdue premiums, it was not necessary
to inform insured as to his reinstatement before it took effect.
The facts of the case and the judgment of the Court
are as follows: —
"This is an action to enforce payment of two life in-
surance policies on the life of Dr. Clarke, the husband of the
plaintiff, who died on December 8, 1918. The defence is that
the policies lapsed before the death of the assured, for the
non-payment of a quarterly payment on one of the policies
and the non-payment of instalments due under promissory
notes given for past due premiums, and that no evidence of
the insurability of the deceased satisfactory to the defendant
was furnished by assured after the lapse of the policies and
prior to his death.
Paid Up Shortly Before Death
"The quarterly premium was due on September 24, 1918,
and was for the sum of $36.85. On September 18, the com-
pany wrote the assured calling his attention to the fact
that the premium would be due on the 24th of that month,
and again on October 10, they wrote him that the days of
grace would end on October 24, and on October 23 he sent
them a cheque for that amount. The company appropriated
the cheque on past due indebtedness, but the jury have found,
and r am of the opinion that the evidence justified them in
so finding, that the assured appropriated this payment to the
premium due September 24.
"The other payments, for non-payment of which it is
claimed the policy lapsed, were the monthly payments on
the notes for past due premiums due on the 16th days of
September, October and November. The payment which
fell due September 16, not having been paid, the policy
lapsed. An application for reinstatement, dated October 9,
was sent in, but, for some reason, was not accepted, and a
new application for reinstatement was sent in on October
28, and the instalments due on the notes on September 16
and October 16 were paid. On November 22 the company
accepted evidence of insurability of the assured up to October
28, and forwarded the same to Wright, their agent in Regina.
Evidence as to Reinstatement
"The policies became void on September 16, 1918, and,
before they could be reinstated, evidence of the insurability
satisfactory to the company would have to be produced and
all overdue premiums and other indebtedness paid. As the
head office of the company was in Winnipeg, it was not pos-
sible for them to get evidence of insurability up to the
time of reinstatement. It was tlierefore their practice to
pass upon the evidence of insurability sent into them, and
then forward the same to their agent at the place where
the insured lived, for him to collect all overdue payments
and satisfy himself that assured was still in good "health.
That was done in this case, and the jury have so found.
"The company contends that it was necessary to in-
form the insured as to his reinstatement before it takes
efl'ect. Upon this point the jury has found that Wright on
December 2, 1918, told Miss Williams (Dr. Clarke's book-
keeper) that, if she did not hear from him or the defendant
company within three or four days, she could rest assured
the policies would be all right. As there was evidence upon
which they could make this finding, it, in my opinion, satisfies
the above contention.
"I am therefore of the opinion that all arrears on both
policies were paid on December 2, 1918, and that on that
date the company had accepted evidence of the insurability
of Dr. Clarke and reinstated the two policies."
INFRINGEMENT OF COPYRIGHT
Copyrighted Book to be Used Only for Verification — All
Information Must be Secured at First Hand
IN the case of Enimett vs. Meigs, an appe&l to the Alberta
Supreme Court from the judgment at the trial dismiss-
ing the plaintiff's action for infringement of a copyright, it
was held that it is an infringement of a copyright for a sub-
sequent compiler of a guide book to take any information
from the copyrighted book; the only use he can make of the
previous publication is to verify his calculations and results
after independently working out the subject matter for him-
self. The facts and decision of Chief Justice Harvey are as
follows: —
"Emmett has for several years been the publisher of an
automobile road guide for Manitoba, Saskatchewan and
Alberta. The issue for 1919 is called the 7th edition, that
for 1918 the 6th. After the publication of the 1919 edition
the defendants published an automobile ro&d guide for
Canada and United States and in doing so the plaintiff claims
that they infringed his copyright of his 1919 edition. Meigs'
guide gives particulars of many roads not included in the
Emmett's guide, but there are many common to both, though
in most cr..3es the particulars of Emmett's guide book are
much fuller but in both the chief places on the road are
given with the mileage from place to place.
"Emmett swera's that all the information in his guide
book is obtained from actual observation and measurements.
Meigs admits that he did not so obtain the material for his
guide book, but denies that he obtained any of it from Em-
mett's guide books. His explanation of the manner in which
he did obtain it is by no meE«s convincing, and apparently
did not convince the trial judge. Justice Scott, for he ex-
presses the view that the material for Meigs' guide book was
taken from Emmett's 1918 guide book and gives leave to
amend. It was found, however, that at the time of trial the
1918 guide book had no copyright, and the action was there-
fore dismissed with costs.
"A compErison of the particulars in the two books of
one route* in respect of which Emmett claims an infringe-
ment that from Winnipeg to Elkhorn, shows that of 24 dis-
tances shown, 8 differ from those shown in Meigs' 1918 edi-
tion, and of these 7 correspond with Emmett's 1919 edition,
4 of which are corrections from the 1918 edition, and in
addition two new places and distances are given which are
in Emmett's 1919 edition, but not in either 1918 editions.
I find myself quite unable to accept Meigs' testimony that
he did not use Emmett's book to obtain this mr..terial and in
doing so he was infringing Emmett's copyright.
"In my opinion this establishes Emmett's light of action
and in view of the fact that since action was begun prac-
tically the whole edition complained of has been burned by
accidental fire there is little more for Emmett to gain. He
is, of course, entitled to a permanent injunction restraining
the publication of the book with the objectionable matter."
The Canadian Wheat Board has decided to close its Tor-
onto office on May 31. In consequence of this, it will be
necessary for them to stop making payments on participa-
tion certificates on 15th inst. There are still some certifi-
cates outstanding, and holders of these would be well ad-
vised to turn them in before the latter date.
May 6, 1921
THE MONETARY TIMES
^nillllinilMMItnilllllMlllinilllllllllllMIIMIIMIIIIIIIMIIMMIIMIMIIMIIIMIHMIIIIIIIIIIIIIIIIIIMMinniilillllllllMlllllirilllllllllllllllllllllllllllllllli
I CHARTERED ACCOUNTANTS I
TiMiiiiiiiiiniiiuiiMiiiiiiiiiiiiMiMiiiMMiMiniiiiiiiiiiiiMiiiiiiiiiiiMiiiiiiiiiiuinuiiiiiniMiiniiniiiiinMiMiuMiHiniiiiniiiiuiiiMiiiiiniiiiiiiiiiiR
henr/ barber & CO.
Established 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railway Building.
6 King Street West TORONTO
Mill
Home
J. c
W.i
ar,
Cha
Bank
ulross Millar, C,A.
ter J. Macdonald.C.A.
Macdonald & Co.
rtered Accountants
Building, 428 Main Street
WINNIPEG
HARBINSON & ALLEN
Chartered Accounlanls
408 Manning Cheimbers
TORONTO
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REPRESENTATIVE LEGAL FIRMS |
illllllllllllinilUlllllllllllllllllllinilllMlllllllllllllMIIIIIIIMniMMIIIIMIHIIIIIIIIIIIIIinillllliinnillllMMIIIMIIIIIIIIIIIIIMIIIIIMMIIIIIIIIIIIIIIIIIIf?
CALGARY
Charles F. Adams, K.C.
Bank of Montreal BIdg.
CALGARY - - ALTA.
LETHBRIDGE, Alta.
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE Alberta
SASKATOON
C. L DURiR. B.A. B. M. Wake
.0 1
DURIE & WAKELING |
Barristers and Solicitors
Solicitors for the Bank of Hamilton
Great West Permanent Loan Co.
Monarch Life Assurance Co.
The
The
Canada Building Saskatoon. Ca
nada
VV. F
W. Lent. K.C. Alex
B. .M.
ckay, .\1.A-.
LL.B. H. I). .Mann.
.M.A..
LL.B.
LENT. MACKAY
&
MANN
Ba
risters. Solicitors.
Notai
ies. Etc.
Ma G
rain Kxchanse Bldn .
CalK:
ry. Alberta
Cable
Address." Lenjo." \V
•stern
Urn on Code
Solic
tors for The Standard
Bank
of Canada.
The J
Northern Trusts Co..
Assoc
latcd Mort-
^^""■^
nvestors, &c.
MEDICINE HAT
TORONTO
C, K H I...V...
1.1. It
I W Si.i K.iiT. B A
LONG
&
SLEIGHT
Barristers, etc. |
MEDICINE
HAT
ind BROOKS. Alia.
G.W. MORLEY& COMPANY
Barristers. Solicitors. Etc.
802 Lumsden Building. Toronto
Solicitors for A. C. Spaldint; & Bros, of Can..
Ltd.; A. J. Reach Co. of Can.. Ltd.; Dommion
Chautauquas. Ltd.. etc.. etc.
Speci.->1 attention given to Corporation work
and collections.
Cable Address; "Morley." Toronto
C. A. WHir.HT. B.C.I.
WRIGHT &WRIGHT
Barristers, Solicitors, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon, A. C. l;
F. C. Jamicson.
S H. McCu
ilhtrfi
K.C.
aig Ct
rJ K.C.
Chas
cil Ruthl
LL.l).
H.Grant
rford
RUTHERFORD. JAMIESON
& GRANT
Barristers
Sol
'citors.
£*C.
514-18 McLeod BIdg.
Edmonton, Alberta
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barristers, Solicitors, Etc.
Solicitors for Bank of .Montreal. The Trust
and Loan Co. of Canada. British Canadian
Trust Co.. &c.. &c.
C. F. P. Conybeare. K.C, H. W. Church. .MA.
R. R. Davidson. LL.B.
Lethbridae • > Alta.
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers, Etc.
Solicitors— Bank of .Montreal
Canadian Bank of Commerce
Moose Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUII.DING
PKINCE ALBERT, SASK.
VANCOUVER
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers. Solicitors, Etc.
Solicitors lor Bank of .Montreal (Bank of
British North America Branch)
Yorkihire Baildint. S25Sejiiioor St.. V.ncoa.er. BC.
Your card here teould
ensure it being seen by
the principal financial
and commercial interests
in Canada. .4st about
special rales for this page.
28
THE MONETARY TIMES
Volume 66
News of Industrial Development in Canada
Newsprint Situation Will Change For the Better in Few Months, According
to an Authority— Conditions in Europe Are Not Very Bright— Automobile
Trade is Reviving — Plants of Ford and Studebaker Companies Are
Running on Full Time — Ontario Government to Manufacture Cement.
WHATEVER industrial expansion has taken place this
year in Canada, having particular regard to the estab-
lishment of branch plants and the extension of already exist-
ing factories, the participation of foreign capital has been
small. This is only natural, of course, for even our own com-
panies found it necessary to adopt a rigid policy of retrench-
ment. Not only was there no need for further factory space,
but the existing plants were found to be out of proportion
to the marketable production.
Just recently, however, there has been a revival of in-
terest by United States manufacturers and also of British
companies. Enquiries which have been received here have
not been of a very definite tone, but such a movement should
at least indicate a healthier spirit of optimism. Manufac-
turers are still disposed to move cautiously, until there is a
definite turn in trade, but it is encouraging to think that
when the period of depression is really passed, and industry
is again ready to take the offensive, there will be no lack of
capital.
Pulp and Paper Trade
Returning from a trip abroad, G. F. Steel, general man-
ager of the Canadian Export Paper Co., states that in his
opinion the present abnormal condition of the newsprint
would change for the better in the next few months. "Dur-
ing my six weeks' trip abroad," he said, "I came into intimate
contact with the largest producers of newsprint paper of Fin-
land, Norway, Sweden, Germany, England, Belgium and
Holland. Owing to the present world-wide disturbance of
general business the producers of this' grade of paper in
Europe as well as in Canada and the United States have
experienced a rather sharp falling off in demand as com-
pared with the feverish and unhealthy situation which existed
a year ago. This is especially in evidence in England, where
business conditions seems to be more depressed than in other
paper-consuming countries.
"Owing- to the inequalities of exchange, foreign offer-
ings of paper are current in England at prices far below the
cost of British manufacture, and many mills are facing dis-
aster, if not ruin. This also applies to many English news-
papers, whose supply of paper has been arranged during
the past for periods running through this year, and in some
cases well beyond this year. Here, again, we found the un-
fortunate effects of fluctuating and unstable markets, which
are not desirable from the viewpoint of either the buyer or
the seller.
"This same state of affairs is, of course, also to a less
extent affecting the outlook in the manufacture of paper
and the publishing of newspapers in Canada and America.
Here, however, the most enlightened and far-visioned pub-
lishers are averse to rapid declines in the selling price of
newsprint paper, believing that such a decline probably would
have a disturbing effect on the stability of the publishing-
business. While there are a few large companies in America,
and more particularly in Canada, which are especially well
equipped and so thoroughly self-contained that they can pro-
duce paper at very low costs, there are a multitude of smaller
concerns makmg paper from raw materials contracted for
at earlier dates, which would be greatly embarrassed by
drastic declines in the selling price of paper. It is certainly
not to the advantage of the buyer that these concerns should
be crippled or destroyed by a distui-bed paper market, for
the violent fluctuations in the price of paper in the past are
largely due to causes which are now producing such unfavor-
able and unfortunate conditions abroad. It is believed by
those best informed that the present situation is abnormal
and temporary, and that another six months may tell quite
a different storv."
In correction of an editorial statement in The Monetary
Times of April 15, F. Law, president of the Oak Tire and
Rubber Co., Toronto, points out that this company is not one
of those having no established plant or connection. It has
been doing business since 1916, and has branches at Toronto,
Montreal and Winnipeg. Regarding its present position, Mr.
Law adds: "Throughout the entire depression our factory
at Oakville has been running continuously, and we have not
laid off one man. At the present time we are working 23
hours per day to full capacity.
"Our sales for the year 1920 were 79 per cent, greater
than for 1919, and this year promises to exceed all previous
records. We are not committed to any large contracts for
high priced fabrics and rubber, and we stand good financi-
ally." This experience of the Oak Tire is in contrast to
that of other rubber companies, which have been severely hit
by dull business.
Automobile Industry Brightening
Work has started on a full time basis at the plant of
the Ford Motor Co. of Canada, at Ford, Ont. Speaking of
the situation, W. R. Campbell, secretary of the company
stated that this is the peak of the automobile season, and
there seems to be an extra demand for cars. During the
past six months the Ford plant has been running only four
days per week, while the American plant in Detroit has been
running but 60 per cent, of capacity.
This statement is corroborated by the words of E. C.
Mackie, general manager of the Walkerville factory of the
Studebaker Corporation of Canada. "Our domestic trade is
much better than at this time last year," said Mr. Mackie.
"For several weeks our factory has been running on full
time production, and all indications point to a very busy
year for the local plant. We cannot build enough cars to
fill our orders and at the present time we are considerably
behind in our production."
The Transportation Commission of the Toronto Street
Railway has placed an order for one hundred motor cars
and sixty trailer cars with the Canada Car and Foundry Co.
of Montreal. The contract price is in the neighborhood of
$1,270,000, and is exclusive of electrical and air-brake equip-
ment, which will be purchased under separate contracts fi'om
Canadian or British firms, or possibly both.
Work at the large pulp and paper plant, forming part
of the Gatineau Co., Ltd., and situated at Kipawa, which
ceased some time ago, throwing a number of men out of
employment, is likely to be resumed around May 1.5th. In-
formation to this effect has been received in the city from
the head oflice of the Riordon Co., Ltd., Montreal, of which
the Gatineau Company forms a part.
The Ontario legislature has approved of a vote of $1,-
000,000 for the carrying out of Hon. F. C. Biggs' scheme to
establish a provincial cement plant. The minister explained
that the amount voted would build a one-unit plant with a
capacity of something over 300,000 barrels annually, which
would be sufficient to supply the needs. of the province for its
provincial highway program. He stated the location of the
plant had not been decided upon, but that the department was
negotiating for options on alternative sites.
Thomson Textiles, Ltd., a newly organized company,
which purposes erecting a large plant at Whitby, Ont., for
the manufactui-e of hosiery and other similar articles, has
purchased an acre of land on the Kingston Road from Samuel
Bisney. The firm at present has a plant in Toronto, but it
is proposed to move this to Whitby as soon as the new fac-
tory is completed. It is expected the company will employ
130 hands.
May 6, 1921
THE MONETARY TIMES
IF you are not younger than 22 years
or not older than 41 years and in good
health, send for particulars of our famous
Money-Back Policy
Please state date of birth.
The Travellers Life
Assurance Company of Canada
MONTREAL, QUE.
Hon. GF.ORGE P. GRAHAM, Pre.i.ienl.
LONDON
GUARANTEE
ACCIDENT COY.. U
AND
nnited
Head Office for
Canada - Toronto
Employers' Liability, Elevator
Guarantee. Internal Re
Teams a
Contract, Personal Accident
■enue. Sickness. Court Bond
nd Automobile.
Fide
ty
AND FIRE INSURANCE
FARMERS'
FIRE & HAIL INSURANCE COMPANY
FIRE, HAIL AND AUTOMOBILE INSUR.^NCE
Head Office, CALGARY. Saskatchewan Office, REGINA
M. P. JOH.NSTON. Managing Director
CANADIAN STRONG PROGRESSIVE
v»& mv!>j9iii»f^^&wisim^
FIRE INSURANCE
AT TARIFF RATES
Merchants Casualty Co.
Head Office : Winnipeg, Man.
The most prosressive company ii
supervision of the Dominion and Pi
Embracing the entire Dominion of Canada.
SALESMEN NOTE !
;ident and health policy is the most liberal protection offered
um of Sl.OO per month and up.
Covers over 'i-.^iOO different diseases.
Pays for Life if disabled through Accident or
I'ifty |ier cent- extra if confined to hospital.
P.iys for Accidental Death. Quarantine. Sur-
geon Fees for minor injuries, also for death of
BeiiL-Hciary and children of the Insured.
Good Openings for Lioe Agents
rn Head Office. Royal Bank BIdK.. Toronto
Office Electric Railway Chambers.
Winnipeg, Man.
Commercial Union Assurance Co.
Limited, of London. England
Capital Fully Subscribed S 14.750,1100
Capital Paid Cp 7,37,S,000
Total Annual Income Exceeds 75,000.000
Total Funds Kxceed 209,000.000
Head Office Canadian Branch:
COMMERCIAL UNION BUILDING - MONTREAL
hai.hi-:k r j. ki:hk'. As--isia.m .Mav.\i.i k. w. s. .ioplim;. .Mava.-.ir
Toronto Office - 49 Wellington Street Eait
GHO KV HARl-.HAFT. General Agent for Toronto anj County of York
piiiiiiiniMiMiiiiMiiJiiiiiiiiiiiiimiiiiiiiniiiiimiiiiiii^^
■ =
I Automobile— 1 92 1 —Season |
Policies to cover ANY or ALL motoring' risks 1
ATTRACTIVE AGENCY CONTRACTS |
1
British Empire Fire Underwriters |
82-88 King Street East, Toronto |
Assets Exceed $4,000,000 ■
EllllilllllUIIIUillllllUliillllJilllilllillll
iiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiMiiiiiiiiiiiNiiiii^
THE PROVIDENT
ASSURANCE COMPANY
A. M. ALETTER. Provincial Agent
C.P.R. Building, Toronto
A Strong All-Canadian Company, with Head
Office at Montreal, has been licensed to transact
Fire Insurance
in addition to Automobile, Accident, Sickness,
Liability, Guarantee and Surety.
The Fire Branch will operate non-farifi,
writing moderately large lines.
Applications for agencies are invited.
THE MONETARY TIMES
Volume 66
The Abitibi Power and Paper Co. plant at Iroquois Falls,
Ont., will be closed for a month, commencing May 10 accord-
ing to information received. On reopening, the reduced wage
scale that has been proposed will be put in force. The pros-
pective cut amounts to thirty per cent.
At the annual meeting of the Asbestos Coi-poration of
Canada last week, the president, W. G. Ross, told the share-
holders that the company's exports would increase as soon
as the German reparations discussions and the British
miners' strike were over, as they had delayed certain ship-
ments.
NEW INCORPORATIONS
Capital for Week Ended May I is 820,3.59,900, Compared
with S13.676,000 Previous Week
Authorized capital of $20,359,900 is represented by com-
panies whose incorporations were reported to TIic Monetary
Times during the week ended May 4, compared with $13,-
676,000 for the previous week. A comparative summary by
pi'ovinces is as follows: —
Week ended Week ended
April 27. May 4.
Dominion $ 4,372,500 $ 2,044,000
Alberta 1,342,000
British Columbia 225,000 2,680,000
Manitoba 250,000
New Brunswick 49,000
Ontario 6,803,000 11,520,000
Quebec 556,000 3,816,900
Saskatchewan 377,500
Totals $13,676,000 $20,359,900
The following is a list of companies recently incorporated
under Dominion charter, with head oflfice and authorized
capital :^ —
The Manufacturing and Engineering Corp., Ltd., Quebec,
$100,000; Compagnie d'lmportation du Canada, Ltd.. Mont-
real. $125,000; Dominion Coach and Livery, Ltd., Toronto,
$50,000; Lemay, Ltd., Ottawa, $250 000; Royal Agencies, Ltd.,
Montreal, $250,000; Canrda Farm Agencies, Ltd., Winnipeg,
$125,000; Trjnat Steamship Co., LtJ., Montreal, $24 000;
L Rosa ?nd Co., Ltd., Montreal, $50,000; Stirling Co., Ltd.,
Toronto, $5,000; WilLam Paterson, Ltd.. Brantfori, $400,000;
L. A. Ott and Cj., Ld., Mcntr:al, $100,000; Highway Cross-
ings, Ltd., Toronto, $500,000; John J. Bradley, Ltd., St. John,
$10,000; Cohal, Ltd., Toronto, $50,000; North West Petro-
leum Co., Ltd., Edmonton, $5,000.
Provincial Charters
The following is a list of companies recently incorporated
under pro.vincial charter, with head office and authorized
capital: —
British Columbia. — Sardis Community Hall Co., Ltd.,
Sardis, $10,000; Canadian Wood and Coal Co., Ltd., Van-
couver, $100,000; Independent Sand and Gravel Co., Ltd.,
Vancouver, $100,000; Springer Dairy Co., Ltd., Vancouver,
$10,000; Abernethy Lougheed Logging Co. Ltd., New West-
minster, $1,000,000; Coast Printers and Publishers, Ltd.,
Vancouver, $50,000; Cranbrook Theatres, Ltd., Cranbrook,
$30,000; Hecate Straits Towing Co., Ltd., Vancouver, $25,-
000; Vancouver Cement Floor Co., Ltd., Vancouver, $10,000;
Vancouver Merchants' Exchange, Ltd., Vaiicouver, $10,000;
McLay Sawmill, Ltd., Duncan, $25,000; Petrified Products,
Ltd., Vancouver, $50,000; Coast Breweries, Ltd., Vancouver,
$250,000; Sheep Creek Consolidated Min^s, Ltd., Vancouver,
$1,000,000; East Kootenay Prospectors Development Co.,
Ltd., Cranbrook, $10,000.
Manitoba.— Service Lumber Co., Ltd., Russell, $10,000;
Granite Curling Club, Ltd., Winnipeg, $20,000; Port Gan-y
Ski Club, of Winnipeg, Ltd., Winnipeg, $20,000; Portage Con-
solidated, Ltd., Portage la Prairie, $50,000; J. P. Ti-emblay
Co., Ltd., Winnipeg $100,000; Manitoba Linseed and Fibre
Products Co., Ltd., Winnipeg, $30,000; Service Press, Ltd.,
Brandon, $20,000.
Ontario. — Wm. Grierson and Sons, Ltd., Hamilton, $40,-
000; National Suspender Co., Ltd., Toronto, $40,000; R. Leo
Watson, London, Ltd., London, $40,000; Toronto Winter
Club, Ltd., Toronto, $250,000; Vv^. J. Pickard, Ltd., Toronto,
$150,000; Regent Amusement Enterprises, Espanola, Ltd.,
Espanola, $200,000; Toronto Asphalt Roofing Manufactur-
ing Co., Ltd., Toronto, $100,000; Superior Wrench and Tool
Co., Ltd., Toronto, $40,0000; Dominion Broom and Handle
Co., Ltd., Mount Dennis, $40,000; Canadian Finance and
Trading Co., Ltd., Toronto, $40,000; Windsor Clay Products
Co., Ltd., Windsor, $250,000; Print-Craft, Ltd., Toronto, $40.-
000; Orford Farmers Co-Operative Co., Ltd., Muirkirk, $40,-
000; Fort Norman Securities, Ltd., Toronto, $40,000; United
Finance Corporation, Ltd., Windsor, $1.50,000; R. Leo Wat-
son, Gait, Ltd., Gait, $30,000; General Stone Sales, Ltd.,
Toronto, $40,000; Gould Baird Poster Co., Ltd., Brantford,
$40,000; New Idea Publishing Co., Ltd., Toronto, $40,000;
South Keora Mines, Ltd., Toronto, $3,000,000; Lindsay
Knights of Columbus Home Assoc, Ltd., Lindsay, $40,000;
Rural Securities Co., Ltd., Toronto, $250,000; Whicher Lum-
ber Co., Ltd., Colpoys Bay, $50,000; Henley Aquatic Assoc,
Ltd., St. Catharines, $40,000; Ontario Shoes, Ltd., Kitchener,
$40,000; Hamilton Finance Corp., Ltd., Hamilton, $1,000,000;
International Inventions, Ltd., Toronto, $200,000; Mace Con-
struction Co., Ltd., Toronto, $40,000; London Woodworkers,
Ltd., London, $100,000; Two-in-One Gold Mines, Ltd., Tor-
onto. $5,000,000; W. H. Cunningham and Hill, Ltd., Toronto,
$150,000.
New Brunswick. — Moncton Wholesale Grocers, Ltd.,
Moncton, $49,000.
Quebec. — Phonograph Acoustics, Ltd., Montreal, $250,-
000; National Pad Co., of Montreal, Ltd., Montreal, $49,000;
Railway Employees Club, Ltd., Montreal, $14,000; Montreal
Hippodrome Co., Ltd., Montreal, $3,100,000; St. Francis Bond
Co., Ltd., Montreal, $20,000; L'Heureux Automobile Tire In-
flater, Ltd., Montreal, $95,000; Eagle Realty Co., Ltd., Mont-
real, $20,000; La Societe de Batisse de St. Georges, Ltd., St.
Georges, $20,000; St. Lawrence Baking Co., Ltd., Montreal,
$30,000; Le Garage de Levis. Ltd., Levis, $49,900; Selecta,
Ltd., Montreal, $20,000; Golfers Club, of Montreal, Montreal,
$50,000; La Manufacture de Biscuits et Confiseries de Scott,
Ltd., Scott, $99,000.
ROYAL INDEMNITY EXTENDING SCOPE
The Royal Indemnity Company is extending its scope to
include many new lines of business. Insurance against break-
downs of electric motors, generators, transformers, starting
devices, etc., will be written. In addition, golfers' liability
and forgex-y and cheque alteration insurance will be trans-
acted by the company.
License has been issued to the Casualty Company of
Canada to transact in Quebec the business of automobile and
plate glass insurance. Thomas Duffy, 11 St. Sacrament
Street, Montreal, is the chief agent for the province.
. The National Provincial Plate Glass and General Insur-
ance Company, Ltd., has been registered to transact in
Quebec the business of fire and plate glass insurance. Arthur
Barry, Royal Exchange Building Montreal, is chief agent
for the province.
The Niagara Fire Insurance Co., the Springfield Fire
and Marine Insurance Co., tlie Pacific Coast Fire Insurance
Co., and the underwriting firm of J. W. Gi-ier and Co.. have
moved their Montreal offices to the Lake of the Woods Build-
ing.
Robert H. Leckey, Toronto, has been appointed associate
special agent of the Aetna Insurance Co. The new appoint-
ment is necessitated by the constantly increasing duties of
special agent J. R. Stewart. Mr. Leckey is well known as
an inspector for several years for the Canadian Fire Under-
writers' Association. He assumed his new duties on May
1st, and his address is the same as Mr. Stewart's, 36 Tor-
onto Street. Toronto.
1
Mav 6, 1921
THE MONETARY TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 ■ $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto ' ' Solid as the Continent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agent^j into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor
3f Ag
North American Life Assurance Company
•■SOLID .\S THE CONTINENT"
HEAD OFFICE TORONTO
Important Features of the Ninth Annual Report
WESTERN LIFE ASSURANCE CO.
HEAD OFFICE - WINNIPEG. MAN.
Assurances, New and Revived *I, 308, 750. 00
Premiums on same 44.70.S.25
Assurances in Force -1,233,907.35
Total Premium Income ..... . 128,286.67
Policy Reserves 291 ,969.00
Admitted Assets 358,667.36
Average Policy 2,306,04
PreTiiiuni per SI, 000 Insurance — Collected in
C.ish 30 .30
For particulars of a good agency .ipply to
ADAM REID, Manacinc Director WINNIPEG
The Mutual of Canada Day by Day
During the year 1920 the average payments in benefii*; of different kinds
to hencfici:*ries and policyholders amounted to $11,500 for every
working day throughout the year, a total of $3,492,830- Every year
the payments have increased, the total made since the establishment of
the company being over thirty-three millions. The funds in hand to
guarantee future payments amount to forty-two millions -so that the
company has either paid or holds in trust more than S75.000.tK)a. This
total exceeds the premium income by eight millions. These figures show
th.it the Mutual Life of Canada is making good on all contracts entered
into in past years. It is not only "making good," it is " making better,"
for the profits alone actually paid during the years since establishment
amount to eight millions of dollars, a record of economy and service of
which any life oftice might justly be proud.
The Mutual Life Assurance Co. of Canada
Waterloo Ontario
"For the man of vision."
Policies which may be adjusted to meet changed cir-
cumstances The " Canadian ' Series issued only by
The London Life Insurance Co.
HEAD OFFICE
LONDON. CANADA
G E
N
E R
A L
ACCIDENT
FIRE
AND LIFE
ASSURANCE
CORPORATION.
LIMITED,
OF PERTH
SCOTLAND
PKLEC; HOWLA.ND,
Canadian Advisory Director
Toronto Ascnts. E
THOS. H.HALL.
Manager for Canada
L. McLKAN.LIHlTKO
Insurance Bridges Life's Gap
.-\ wife uho h,is bf.-n used l<> the conifortsand care of a huslMnd
feels that she in a world cf desolalion when death claims hiin.
If he has been one of the provident ones who has protected her
future through life insurance, she knows that his thoughtful care
has extended beyond the span of his life.
HAVE YOU FAILED?
Bui if he has failed to make this provision her feeling of desola-
tion is actually realized. She faces a cold world alone — forced
to pick up the burden he has dropped.
^'ou do not want your wife in this position do you?
Asl( for pi:rsonal ral,:s ^ giving ,/a(f of hirlh.
THE GREAT-WEST LIFE ASSURANCE COMPANY
DEPT. "F"
HEAD OFFICE - - WINNIPEG
The Western Empire
Life Assurance Company
Head Office: 701 Somerset Building, Winnipeg, Man.
SASKATOON
Oppicbs
EDMONTON
VANCOUVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office for Canada, Hamilton, Onl. Assets over $1,700,000
Writing Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NORMAN S. JONES, Manager R. J. MAHONV, Ass't Man.nRir
CAPITAL TRUST CORPORATION
Authorized Capital - $2,000,000.00
Board of Directors :
President: HON. M. J. OBRIEN, Renfrew
Vice-Presidents
.J.LYONS, R. P.GOUGH, A. E. PROVOST. E. W. TOBIN. M.P.
Ottawa Toronto Ottawa Bromptonville
ANGUS ROBERTSON
Montreal
\V. H. McAULIFFE.
T. P. PHELA.N, J.F.BROWN. P.V.BYRNES.
Toronto Toronto Hamilton
HUGH UOHBNY, COL. D. R. STREET.
Ottawa .Montreal Ottawa
GORDON GRANT. C.E. J. B. DLFORD, JOS GOSSELIN, Jr.
Ottawa Ottawa Quebec
J. J. HcFADDEN. ARTHUR FERLAND,
Renfrew Haileybury
Assistant Gen. Manager E T. 8. PENNEFATHER
Managing Director B. G. CONNOLLY
Manager Toronto Branch. THOS. COSTELLO
Our chief work is in Acting as Executor under wills,
and as Administrator of Estates.
THE MONETARY TIMES
Volume 66
NEWS OF MUNICIPAL FINANCE
Burnaby's Position is Improving — New Westminster Had
Deficit Last Year — Edmonton's Tax Kate is Lower, but
Calgary's Sliows Increase — Peterborough's
Net Debt Increased in 1920
Nolfomis, Sask. — It is reported that the municipality is
in default in payment of interest coupons.
Sannich, B.C. — At 20 mills on the dollar, the tax rate
has been struck at the same level as in 1920.
Calgary, Alta.— The tax rate for 1921 will be 48.50 mills
on the dollar, as compared with 45.7.5 last year. The 1921
rate includes 1.85 mills provincial tax.
Quebec, Que. — The tax rate for this year will be $1.40
on $100, which is the same as last year. The budget shows
an increase of $173,227 over 1920.
Windsor, Ont. — A by-law, setting the tax rate for the
year 1921 at 28 mills as recommended by the finance com-
mittee, has been passed by the city council. Last year the
rate was 34 mills.
Okanagan, B.C. — The municipality has decided to defer
issuing further debentures until the sinking fund is brought
to par. At present the city has a bonded indebtedness of
$90,000 and there is a shortage of $12,000 in the sinking
funds.
Edmonton, Alta. — The city's tax rate will be 39.90 mills
for 1921, as compared with 45 mills in 1920. The net land
and building assessment this year is placed at $80,202,245,
while in 1920 it stood at $79,191,550. The assessment of
lands in the outer zone, and which are classed as fai-m lands,
is set at $266,445 for genei-al municipal and debenture in-
terest purposes. General debenture interest and redemption
will absorb $975,351 this year, against $898,824 in 1920.
New Westminster, B.C. — A defiict of $87,568 was ex-
perienced by the city council in operating the municipal
departments during 1920, according to a financial statement
submitted to the finance committee by A. J. Bowell, city
treasurer. It shows that total income totallsd $ 528,1 jO and
expenditures $915,719. Failure of estimated receipts to toe
the mark, and also the fact that almost every department
over-expended their estimates are some of the reasons ad-
vanced to explain the deficit.
Saskatoon, Sask. — The city recently resolved to invest
sinking fund money in the purchase of $35,000 of these
debentures, maturing June 30, 1930, bearing interest at 4
per cent., at a price of 81.86 and accrued interest. The price
offered the city would have meant an interest yield of 6.65
per cent., and, being for a tenn of nine years, considered a
good investment for the sinking fund.
The Local Government Board, however, was of the
opinion th&t, owing to the existing deficits and the uncer-
tainties as to future policies respecting Canadian National
Railways, it was "advisable for the city council to invest its
money in other securities which at the present time are
readily obtainable at high interest yield." City Commissioner
Leslie did not quite see the board's reason for refusal, seeing
that the bonds are guaranteed by the province of Manitoba.
Peterborough, Ont. — Some interesting figures on the
city's financial position were given out by City Treasurer
Adams last week. It will be noticed from the comparisons
below that the net and gross debenture debt has increased
largely. There has been an improvement in receipts and
tax collections: —
1919. 1920.
Gross. Per cap. Gross. Per cap.
Total debenture debt . . $2,550,913 120.00 $3,094,582 142.00
Net debenture debt . . . 885,165 41.00 1,704,338 73.16
Total receipts, current 501,357 23.61 604,002 27.72
Taxes levied 480,204 22.61 570,267 26.17
Taxes paid 453,101 547,478
Percentage of taxes
paid 94% 96%
Population 21,230 21,790
Burnaby, B.C. — In common with other municipalities in
British Columbia, the district of Burnaby has experienced
strenuous times since the slump in 1913, but by adopting a
conservative policy the municipality has been enabled to
maintain a satisfactory financial position, which continues to
improve.
Details of the balance sheet as at December 31, 1920,
were published in these columns last week, showing a sur-
plus of capital assets over capital liabilities of $425,996,
and a surplus of current assets over current liabilities of
$200,783.
Two events have taken place recently which enhance the
financial standing of the municipality. Early in 1920 a Pro-
perty Department was established in connection with the
land acquired at tax sales through which a steady stream of
sales is maintained. So successful has this department been
that the proceeds of sales, together with collections of
arrears of taxes, was sufficient to provide at December 31,
1920, the full amount of the sinking fund required for the
redemption of the $400,000 temporary debentures issued in
1919 and maturing in December, 1924. Purchasers of the
land through the department are bona fide settlers, not specu-
lators, and many new homes were built in 1920, necessitating
some 300 new water services, and preparations are under way
for even more extensive building operations during the pre-
sent year.
The consequent increase of population has necesistated
more school accommodation and the provision of an alterna-
tive water main, and it was to meet these needs that recent
issues of school and waterworks debentures, totalling $131,-
700, were made. These are the first issues for capital ex-
penditures which have been made bv the municipality since
1913.
The other event is the passing of the "Conservation of
Assets" by-law. The prime object of the by-law is to reduce
the overhead indebtedness of the municipalty, as the fixed
charges on every hvy made in Burnaby amount to about 50
per cent, of the revenue. That is, when a levy of $400,000
in taxes is made, the ratepayer can figure that only one-half
of that amount is going to maintenance and works in that
municipality, the balance being absorbed by interest and
sinking funds on previous loans.
The act validating this by-law gives the council power
to deposit the proceeds from the sale of lands received to
the credit of a trust fund to meet the temporary debenture
loan of $400,000, and any moneys accumulating thereafter
from the sale of the unsold balance of bonds will go into this
fund to pui'chase outstanding bonds of the municipality when
same can be secured at reasonable prices. All bonds so pur-
chased must be cancelled and cannot be resold. Should any
balance remain in this fund after said bonds have been lifted
off the market, the by-law provides that all unexpended bal-
ances can, with the sanction of the Lieutenant-Governor-in-
Council, be utilized on such permanent works as waterworks,
roads and sewers.
• TAX DEDUCTION FROM RENTALS
Shareholders of the Atlantic and St. Lawrence Railroad
are informed that the company has been required by the
United States government to pay income-tax upon the rental
payable by the Grand Trunk Railway Co. of Canada, and in
consequence the balance in hand available for payment on
account of the coupon due on March 15 will be £2 8s. Id. (in-
stead of the £3, the amount of the coupon) from which
English income tax will have to be deducted. The American
income-tax payable is at the rate of 60 cents for each $100
share, this being equal to lis. lid. on the £6 payable on each
£100 share lT>- the Grand Trunk Railway Co. by way of rental
for the year 1920.
The Atlantic and St. Lawrence Railroad Co. have no
funds out of which to pay the coupon, except rental payable
under the lease, and the Grand Trunk Co. have been advised
that they are not liable under the terms of the lease to pay
the American income-tax.
May 6, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
IHVUTMCNT BANKCRS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
high grade industrial
securities;
12 KING ST. EAST
TORONTO
STOCKS AND BONDS
Canadian. British and American Securities
Bought and Sold on all Principal Exchanges
Prtoate win connections with New York and Toronto.
OSLER, HAMMOND & NANTON
WINNIPEG
"The Hill Roads"
A sh.irt history and ilesrrii.tion of thr North-
ern Pacific Railway Company. The Chicai^o
Burlin}?ton and Quincy Railroad Company
and the Great Northern Railway Company.
Our United States Correspondents have prepared
a concise, interesting?, and timely pamphlet which
we shall be *clad to send to investors upon re<iuest.
Harris, Forbes & Company
INCORPOSATED
C.P.R. Building 21 St. John Street
TORONTO MONTREAL
A Newspaper Devoted to
Municipal Bonds
'T'HERE is published in New \'ork Cily a daily
* and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond offering's.
Write for free specimen copies
THE BOND BUYER
67 Pearl Street
New York, N.Y.
c.
H.
BURGESS & CO.
Government and
Municipal Bonds
14
King
Street East
Toronto
ACCOUNT BOOKS
l^oosE Leaf Ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
Opportunities for Foreign Investors
He
I he
alest protit-m:;king investment opporlunily ever
aviilable to I aiiadian Invesiois— Government Bonds of Great Britain
and France— bonds that may now be bought to yield well assured
profits up to 200%.
A good deal of attention is also being given to the bonds of Ger-
man Cities, especially those in the occupied zone, along the Rhine.
These may now be bought to yield possible profits up to and over
1.000%.
Now is the time to buy. Prices recently reached their lowest
levels in history and have been much stronger since, due to a growing
appreciation of the advantages of these bonds, and the consequent
heavy buying of ihem coupled With the fundamental strengthening of
all exchange rates.
For further particulars and Quotations apply to—
R. M. HEFFERNAN & CO., Ltd.
Jackson Building, Ottawa
THE MONETARY TIMES
Volume 66
Government and Municipal Bond Market
Ontario Sells Securities on 6.21 Per Cent. Basis— Offering Meets With Good
Reception — Victory Loan Prices Show Stronger Trend — Lethbridge Irrigation
Bonds Will Soon Be on the Market— Large Balance of Edmonton Bonds Returned.
THERE was considerable activity in the government and
municipal bond market during the past week, with a
firming in prices, as evidenced by the trend of Victories. The
strengthening, no doubt, was due largely to the funds made
avaih>ble by the May interest payments on Victory bonds.
Ontario's issue came at an opportune time, and the province
realized a pretty good price. The offering, which was made
by a strong syndicate at 6.05 per cent., met with a good
reception. Ontario floated a loan of $20,000,000 in January,
and on twenty-year securities received a price on a basis of
6.28 per cent.
The following table shows the recent trend of Victory
bond prices, and illustrates the improvement which has
t£'ken place in the last few days:^ — •
Control Close Close Close Close
price. Jan. 26. Mar. 2. Apr. 27. May 4.
1922 98 98% 98% 9SVs 98.50
1927 97 98 971/2 971/2 98.00
1937 98 99% 99% 98% 99.00
1923 98 98% 98 97% 98.00
1933 96% 98 98% 96% 97.30
1924 97 96% 96% 96y2 96.50
1934 93 '951/4 95% 9378 94.95
The long-drawn-out sale of Edmonton bonds to the bank-
rupt firm of Morris Bros., of Portland, was finally wound up
last week, when the trustee's thii-ty-day option expired.
Either the securities or cash returns for them are now safely
within Canadian jurisdiction. It is reported by Commissioner
Yorath that proceeds of the sale amount to $950,000. An
issue, therefore, is required to enable the city to pay off the
bank loan which was made necessary last January by the
m&turity of notes. "Owing to the trustee of Morris Bros,
only disposing of approximately $430,000 out of $1,593,600
short-term notes, it will be necessary to make other finan-
cial arrangements to pay off the bank loan," says the com-
missioner.
The bond issue, which is now proposed, is made up of
$221,618 for capital expenditures already incurred and charged
to suspense account; $831,638 for expenditures necessary this
year, and $1,404,596 for repayment of the Imperial Bank loan
of $2,354,596.
The treasury department of the Alberta government is
now prepM-ing to place the $5,400,000 30-year bonds of the
Lethbridge Northern Irrigation District on the market, with
the interest rate reduced from the former set level of 7 per
cent, to 6 per cent. According to Thos. Crofts, chairman
of the district, the bonds will be disposed of in Canada, \o
avoid difficulty over exchange rates in repayment.
Coming Offerings
The following is a list of debentures offered for sale,
particulars of which have been given in this or previous
issues: —
Tenders
Borrower. Amount. Rate "^r. Maturity. close.
Windsor S.S., Ont. .. $225,000 6% 30-instal. May 9
Grand 'Mere, Que. . . 100,000 6 30-yr. ser. May 9
Windsor, Ont 625,230 6 Various May 9
Walkerville, Ont. . . . 95,982.35 6 Various May 10
Shawinigan Falls, Q. 138,400 51/2 Optional May 11
Peterboro, Ont 230,000 614 & 6 V2 20-years May 16
Sarnia, Ont 189,434 6 & 61/2 Various May 17
S&skatoon, Sask 204,000 5 & 6 Various May 23
Vermilion, Alta. 10,000 7 20-instal. June 11
Vermilion, Alta. — Tenders will be received until June
11, 1912, for the purchase of $10,000 7 per cent. 20-instalment
hospital debentures. (See advertisement elsewhere in this
issue.)
Peterborough, Ont. — Tenders will be received until May
16, 1921, for the purchase of $230,000 614 and 6% per cent.
20-year bonds. The proceeds of the issue will be used for
bridge purposes.
Sarnia, Ont. — Tenders will be received until May 17,
1921, for the purchase of $65,180 6 per cent, debentures,
maturing 1921-30, for pavements; $86,147 6% per cent, de-
bentures, maturing 1921-30, for pavements; $38,107 eVi per
cent, debentures, maturing 1922-26, for sewers and sidewalks.
(See advertisement elsewhere in this issue.)
Windsor, Ont. — Tenders will be received until May 9,
1921, for the purchase of $475,230 6 per cent. 30-instalment
school debentures, and $150,000 6 per cent. 20-instalment
Hydro-Electric debentures.
Debenture Notes
Three Rivers, Qiie. — Ratepayers have approved the bor-
rowing of $400,000 to pay off certain debts contracted by
the city in recent years.
Nelson, B.C. — A by-law will be submitted to r£'tepayers
authorizing the issue of $130,000 street improvement deben-
tures, of which amount $50,000 is to be spent this year.
British Columbia. — The province is considering a do-
mestic loan of $1,000,000 in regard to construction of the
new University of British Columbia at Point Grey.
Brantford. Ont. — The city council has approved the issue
of debentures to the amount of $125,000 for extension to
the local Hydro-Electric system. The Ontario Railway and
Municipal Board has yet to approve of the issue.
Goderich, Ont. — A by-law to guarantee bonds of the
National Shipbuilding Co., to the extent of $50,000, has been
carried by ratepayers. The company is going into some
new line of manufacture, a* shipbuilding is in a depressed
condition.
Milestone, Sask. — The Local Government Board has
authorized the town council to issue $12,000 7 per cent. 15-
instalment debentures, but ratepayers must first approve.
The proceeds will be used for erecting a town hall.
Saskatchewan. — The following is a list of authoriza-
tions granted by the Local Government Board, from April
16 to 23, 1921:—
School Districts 8 per cent. 10-years annuity — Brandon,
$3,500; St. Wendelin, $3,500; Freshwater, $3,125; Rockh&ven,
$5,500; Arundel, .$4,.500; Wooler, $1,500. 20-years annuity—
Dalrymple, $7,000; Marquette, $13,500; Clear Creek ,$5,000.
15-years annuity — Beaver Dam, $4,800; Evesham, $5,000.
City of Regina, $38,510 6 per cent. 30-year sinking fund
debentures.
Bolton, Ont. — Ratepayers have authorized the borrow-
ing of $15,000 for local improvements.
Outremont, Que. — The Montreal Metropolitan Commis-
sion ha^s approved a loan of $750,000, and ratepayers will
now be asked to endorse a by-law.
Sherbrooke, Que. — The city council has passed by-laws
authorizing the boi-rowing of $524,500 for various local im-
provements, and it is now left for the voters to give their
approval.
Bond Sales
Manitoba. — The provincial treasury has disposed of $2,-
500,000 5^4 per cent, treasury bills to a Canadian bank.
Dufferin R.M.. Man.— .\n issue of $60,000 6 per cent. 30-
instalment debentures, guaranteed by the province of Mani-
toba, has been purchased by Wood, Gundy and Co. at 94.21,,
which is on about a 6.55 per cent, basis.
May 6, 1921
THE MONETARY TIMES
Victory Bond Owners
with coupons due May 2nd expe-
rienced the satisfaction of collecting
their interest promptly and conve-
niently. The wisest thing to do with
this interest is to reinvest it either
in further Victory Bonds, or in other
high-grade Canadian Government
or Municipal Bonds, which yield
substantial interest returns. We
offer a selection of these bonds,
with a wide choice of maturities,
affording interest returns as high as
6.80%
Write for our latest list
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng.
mmm^mAtA^^.
In Eight
Financial Centres
We maintain thoroughly equipped offices for
the purchase, sale and exchange of Govern-
ment, Municipal and Corporation Bonds.
These offices are at Montreal, Toronto, Hali-
fax, St. John, \^■innipeg, Vancouver, New
York, and London, England.
We solicit inquiries from investors vrho have
bonds and stocks to sell, or from those vrho
wish to buy or exchange. Orders accurately
and efficiently executed.
If you wish to read a stimulating review of
current business conditions, write and ask us
to mail you this month's Investment Items.
Royal Securities
^ 'corporation
U I
rOKONTO
WINNIPEG
M I T E D
MONTKKAL
HALIFAX ST. JOHN. N.B.
VANCOUVER NEW YORK
LONDON. Eiij.
\V. L. McKI.WON
DEA.N H. PETTES
We Buy and Sell
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Government and Municipal Bonds
McKINNON BUILDING -:• TORONTO
Telephone Adelaide 3870
Increase the Return
on Your Investments
Send for our circular describing
Howard Smith Paper Mills
Bonds, Tvhich are being offered
at (1 I'cri) attractive price
R. A. Daly *& Co.
BANK ()|- TdKONTO BUILDING
TORONTO
We Recommend
Tax Exempt
Victory Bonds
to all those whose income taxes are
an important consideration. At
present prices the income yield on
Tax Exempt Victory Bonds is better
than it has been, consequently this
is the time to buy.
Write immediately for quotations,
or send us your orders "at the
market."
W. A. MACKENZIE & CO., Limited
Covcrnment and Municipal Bonds
Corporation Securities
42 KING STREET WEST
TORONTO - CANADA
36
THE MONETARY TIMES
Volume 66
St. Boniface, Man. — The city council has disposed of a
bond issue of $273,233 to the Municipal Debenture Corp. The
bonds mature in 10, 15 a.nd 30 years, bear 6 per cent., and
are payable in Canada and London, England.
Rockwood R.M., Man. — R. C. Matthews and Co. have
been awarded $70,000 6 per cent. 30-instalment debentures
at a price of 94.96, which is on about a 6.49 per cent, basis.
The securities are guaranteed by the province of Manitoba.
York Township, Ont. — R. C. Matthews and Co. have been
awarded $24,130 6 per cent. 20-instalment public school de-
bentures at a price of 97.06, which is on about a 6.36 per
cent, basis. Tenders received were a* follows: R. C. Mat-
thews and Co., 97.06; C. H. Burgess and Co., 96,634; United
Financial Corp., Ltd., 96.362; Wood, Gundy afid Co., 96.33;
Harris, Forbes and Co., 95.87; A. E. Ames and Co., 95.33;
Housser, Wood and Co., 95.317.
Oshawa, Ont. — McLeod, Young, Weir and Co. have bought
$190,257 6 per cent. 15 and 20-instalment local improvement
debentures at 95.90, which is on a^bout a 6.59 per cent, basis.
Tenders were as follows: McLeod, Young, Weir and Co.,
95.90; R. C. Matthews and Co., 95.80; C. H. Burgess and Co.,
95.77; United Financial Corp., Ltd., 95.63; Wood, Gundy and
Co., 95.17; National City Co., Ltd., 94.77; A. E. Ames and
Co., 93.133.
Miniotat Man. — The item appearing in these columns
last week regarding the sale of bonds was not correct.
Details of the issue are as follows: Edward Brown and Co.
purchased $80,000 51,2 per cent. 30-year good roads deben-
tures, guaranteed by the province, at 89.50, which is on about
a 6.53 per cent, basis. Tenders were: —
Edward Brown & Co 89.50
R. C. Matthews & Co 89.04
A. E. Ames & Co 88.89
Bond and Debenture Corp 88.56
Harris, Read & Co 87.15
Strang and Snowden 87.00
Brockville, Ont. — Harris, Forbes and Co., Inc., have been
awarded $30,000 6 per cent. 10-instalment debentures at a
price of 97.579, which is on about a 6.47 per cent, basis. The
following is a list of tenders: —
Harris, Forbes & Co., Inc 97.579
A. Jarvis & Co 97.513
Brent, Noxon & Co 96.863
C. H. Burgess & Co 96.66
Dyment, Anderson & Co 96.65
Wood, Gundy & Co 96.26
Dominion Securities Corp 96.13
United Financial Corp., Ltd 96.13
R. C. Matthews & Co 96.05
A. E. Ames & Co 95.57
Saskatchewan. — The following is a list of debentures
reported sold from April 16 to 23, 1921:—
School Districts 8 per cent.— Tilney, $800 5-years; H.
E. Corson, Tilney. Johnson, $3,800 10-years; Waterm&n-
Waterbury Mfg., Regina. Okabena, $1,500 10-years; R. H.
Rutherford, Drinkwater. Yorkton, $40,000 20-years; Peaker
Bros., Y'orkton. Jack Pino, $4,000 10-years; Nay and James,
Regina. Iris, $6,041 15-years, Versailles. $5,941 15-ye&rs;
C. C. Cross and Co., Regina. Prince, $4,500 15-years; H. J.
Birkett and Co., Toronto.
Greater Winnipeg Water District. — The Dominion Se-
curities Corporation have been awarded $1,500,000 6 per
cent. 30-year bonds, payable in Canada only. The issue was
made for the purpose of paying off five-year bonds maturing
in New Y'ork on July 1 next. Alternative tenders were
asked for, and the following bids were received: — ■
Paya.ble in Canada Only.
lO-Yr. 20-Yr. 30-Yr.
Dominion Securities Corp 95.50 94.61 94.16
Wood, Gundy & Co., and A. E.
Ames & Co 94.39 93.84 93.88
W. A. Mackenzie & Co., R. A.
Daly & Co., and R. C. Mat-
thews & Co 93.17 92.71
Payable in United States (New York funds).
5-Yr. 10- Yr.
Wood, Gundy & Co., and Wells-Dickey Co. 89.81 87.83
National City Co., and E. H. Rollins & Sons 89.17 86.58
A. E. Ames & Co., Halsey, Stuart & Co.,
and the Minnesota Loan & Trust Co. 89.06 86.48
Dominion Securities Corp 88.10 86.31
At the price accepted, the district paid about 6.44 per
cent, for its money. The price basis for the 20-year bonds
was 6.48 per cent., and for the 10-year bonds 6.62 per cent.,
so that apparently there is a greater demand for long-term
securities than for short-term bonds.
Ontario.— There was keen bidding for the $5,000,000 6
per cent, securities, and the provincial treasurer saw fit to
dispose of 15-year bonds, notwithstanding the fa'ct that a
tempting offer was made for the treasury bills. At a price
of 97.94, the province pays about 6.21 per cent, for its money.
Bids were as follows: —
6-months'
15-year treasury
bonds. bills.
Wood, Gundy & Co., A. E. Ames & Co.,
Dominion Securities Corp., A. Jarvis
& Co 97.94 99.68
W. A. Mackenzie & Co., R. C. Matthews &
Co., R. A. Daly & Co 97.81
C. H. Burgess & Co., Canadian Debentures
Corp., McLeod, Y'oung, Weir & Co. . . 97.54 99.64
Canada Bond Corp 97.47011 . . .
National City Co., Ltd., Harris, Forbes &
Co., United Financial Corp., Ltd. . . 97.21
Edward Cronyn & Co., Canadian Bank of
Commerce, Imperial Bank, Dominion
Bank, Brent, Noxon & Co 99.645
Belleville, Ont. — Harris, Forbes and Co., Inc., have been
awarded an issue of $210,000 6 per cent. 20-yea'r debentures
at a price of 96.719, which was on about a 6.29 per cent,
basis. There was keen bidding, as evidenced by the follow-
ing figures: —
Harris, Forbes & Co., Inc 96.719
A. Jarvis & Co 96.50
Wood, Gundy & Co 96.21
C. H. Burgess & Co 96.071
McLeod, Young, Weir & Co 95.81
Dyment, Anderson & Co 95.68
Macneill, Graham & Co 95.37
W. A. Mackenzie & Co 95.35
Brent, Noxon & Co 95.219
Dominion Securities Corp 95.17
T. S. G. Pepler & Co 94.813
United Financial Corp., Ltd 94.64
National City Co., Ltd 94.57
A. E. Ames & Co 94.53
R. C. Matthews & Co 94.28
British Columbia. — Further details concerning the sale
of $3,000,000 6 per cent. 5-year bonds of the province have
come to hand. The price secured was 100.01, which was a
shade under 6 per cent., as stated in these columns last week,
and the syndicate was composed of the British-.^merican
Bond Corp., Carsten and Earles; Seattle, Seattle National
Bank; Halsey, Stuart and Co.; Gillespie, Hart and Todd.
A bid by the Dominion Securities Corp., A. E. Ames and
Co., and Wood, Gundy and Co., of Toronto, was aJso received
for 95.35, on a 24-year basis, payment in Canada only, but
Hon. John Hart stated this offer was not accepted, as it is
not deemed advisable to float such long-term loans in view
of existing high interest rates. The proceeds of the flota-
tion will be devoted to work on the P.G.E. Railway chiefly,
and certain road works it is proposed to carry ahead this year.
County of Renfrew, Ont. — Tenders will be received until
May 17, 1921, for the purchase of $250,000 6 per cent. 20-
year highway improvement debentures. R. J. Roney, county
clerk, Pembroke, Ont.
May 6, 1921
THE MONETARY TIMES
$25,000
CITY
OF HALIFAX,
5, % BONDS
N.S.
Due July hi.
953 Denominal
ions, $1,000
Prin-ipal and semi-annual interest pay
able at Toronto. Montreal, Halifax
Price
: 92.85 and accrued interest j
Eastern
YIELDING 6%
Limited
Securities Company,
ST. JOHN,
N.B. HALIFAX, N.S.
New Issue
PROVINCE OF ONTARIO
6% BONDS
Due, 1936
Principal and half-yearly interest payable in Canada.
DENOMINATIONS: Sl.OOO
Price 99.50 to Yield 6.0S%
BOND DEPARTMENT
The Canada Trust COinPANY
14 King St. E. - - - Toronto
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C. H MACAL'LVV
J, P. MCOI.LS, Nntary Public
WE SEUL
Chauvin,Allsopp & Company, Limited
FARM LANDS
And other sood property. EDMONTON DISTRICT.
VALUATORS
Ground Floor. McLeod Building - Edmonton. Alta.
X
Waghorn Gwynn & Co., Limited
Stock and Bond Brokers
Financial Insurance, and Kcal Estate Agents
VANCOUVER
A. J. Pattison Jr. & Co.
Members
Toronto Stock ExchanRe Montreal Stock Exctiangc
Specialists Unlisted Securities
lOe BAY STREET - - - TORONTO
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches— SASKATOON AND CALC.ARY.
C.initdian Managers
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank Bldg., Edmonton, Alta.
LOUGHEED & TAYLOR, Limited
I.M ESTME\T SECURITIES
210 Eighth Avenue West
CALGARY ALBERTA
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE - REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. ,1. \V. MAHA.V J. A. WliSTMA.N
President Mana»iin(i Director
Vancouver
(British Columbia)
THE GREAT CANADIAN CITY THAT
IS LOCATED IN THE HEART OF A
WONDERLAND OF NATURE.
SPECIAL
ROUND
TRIP RATES
from all Eastern
Canadian points
EFFECTIVE
JUNE 1
(Sec your local
Agentl.
QNLY 15 minutes from the centre of
^Vancouver— the great Stanley Park-
its "Big Trees" — its thousand acres of
natural forest — Only another 15 minutes
the magnificent English Bay beaches
invite you for a "dip" in the Pacific-
Only 30 to 40 minutei— the famous Capi-
lano Canyon— Nature at its best — Hund-
reds of trips just like these.
Ideal Summer climate — no extreme heat by day —
Nights so cool that you will generally find a
blanket welcome.
VISIT
\ Summer y
<Je
end tor lllu.strated Vac
ion Folder. It tells ,
bout Vancouver, the Wc
City of Canada.
Sent free on request to Vayi-
couvcr Publicity Bureau (J. R.
Davison. Mgr.) Suite 60, S3U
Seymour St.. Vancouver, B.C.
THE MONETARY TIMES
Volume 66
CORPORATION SECURITIES MARKET
Trend of Stock Prices is Still Irregular and Indefinite —
Gunns, Ltd., Pass Preferred Dividend — Quebec Manu-
facturing Company Makes New Bond Issue
ABOUT the only change which has taken place in the
Canadian stock markets during- the past few weeks is
that the general disposition to pay particular attention to
specific developments affecting industrial corporations has
given way to a willingness to place greater emphasis upon
general business and financial developments, both real and
anticipated. Certain companies are being judged individually,
but the markets, as a whole, are following the common course
of events.
Such a change has not contributed very much to the
situation, however, for the uncertainty has not been removed,
and the character of the news has not changed. Thus, the
trend of prices on the exchanges continues weak apd in-
definite.
Wall Street had a favorable week, but traders are still
viewing the future with a certain amount of apprehension.
Perhaps the most important event was the action of the
United States Steel Corporation in reducing wages twenty
per cent. Such a movement will undoubtedly go a long way
to help the economic situation, for the stand taken by em-
ployees in regard to wages had created something of a dead-
lock between price recessions and labor costs, which only the
largest producers could break.
In Canada labor is threatening a good many industries,
but employees are beginning to learn to accept their share of
responsibility in deflation, although there are still some who
do not yet understand that falling commodity prices must be
accompanied by a similar movement in wages.
Canada Cement Weak
Among the many declines Canada Cement was pro-
minent. The belief is that shareholders will stand a small
chance for dividends in the next quarter, in view of the fact
that the last disbursement was made from surplus and that
the present state of the cement business will warrant the
conservation of funds. A disturbing factor in regard to the
company's trade, and one to which shareholders have ap-
parently given thorough consideration, is that the Ontario
government is going into the cement business, and may make
inroads upon the corporation's market.
Trading for the week resulted in a turnover of list
stocks on the Montreal exchange of 46,771 shares, as com-
pared with 57,973 in the previous week, while in Toronto the
figure was 15,921, compared with 17,291. Bonds changed
hands to the extent of $1,356,809 in Montreal, as against
$1,207,710, while the turnover in Toronto was $1,315,750,
compared with $826,580 previously.
At a meeting of the directors of Gunns, Ltd., last week
it was decided not to declare the regular quarterly dividend
on the preferred stock, due May 1st, 1921, for the present.
The company has felt the effect of adverse developments dur-
ing the past vear, that have been common to most packing
companies, and the management consider it advisable to con-
serve resources and devote its entire strength to the re-
storation of its earning power, until conditions in this basic
industry return to normal. The balance sheet of Gunns, Ltd.,
as for March 31st, 1921, indicated a substantial margin of
protection behind the outstanding $1,500,000 preferred stock,
the book net worth on that date amounting to $3,559,426,
consisting of fixed assets (after depreciation) of $2,546,516,
and net current assets of $1,012,910. There was outstanding
junior to preferred stock, $1,760,350 of common stock.
An additional listing of $500,000 National Trust Co.
stock took place on the Toronto exchange this week. This
is the new issue of June last, which brought the capital up
from $1,500,000 to $2,000,000.
On Tuesday quotations of war loan bonds on the To-
ronto exchange in decimals was commenced to enable closer
shading of prices.
New Offerings
An issue of $4,000,000 7 per cent. 5-year bonds of "La
Machine Agricole Nationale," of Montmagmy, Que., is being
offered by La Banque Nationale, Le Credit Industrial, Ltd.,
Credit Canada, Ltd., and Emile Ranger, Montreal. The
bonds are dated March 1, 1921, and are in denominations
of $100, $500, and $1,000, with interest payable semi-annually
at offices of Le Banque Nationale. The company's property
'is valued at $6,000,000, covers 48 acres, and farm imple-
ments to the amount of $70,000,000 were sold in 1920. The
bonds are offered at par and interest.
R. M. Heffernan and Co., Ltd., are offering $500,000
8 per cent., preferred stock of the Ottawa Nukol Co., Ltd., at
par ($1.00 per share), with a bonus of 25 per cent, common
stock. The company was incorporated in 1920 for the pur-
poS2 of briquetting fuel known as Nukol to serve Ottawa,
Ottawa Valley, and Eastern Ontario. A factoi-y is to be built
in Ottawa this year to produce briquettes similar in every
respect to those manufactured by the Nukol Fuel Co. of Tor-
onto.
Canadian Salt Bonds
For the purpose of funding capital expenditure on plant
and to increase the working capital of the company. Royal
Securities Corporation has purchased an issue of $400,000
7 per cent, general mortgage bonds, due 1941, of the Cana-
dian Salt Co., Ltd.
The company is the largest producer of salt, and the
only commercial producer of bleaching powder and caustic
soda, in Canada. Its plants are located at Windsor and
Sandwich, Ont. ; its table salt, under the brand of "Windsor,"
being used widely throughout the Dominion.
Dividends have been paid on the common share capital
continuously since the inception of the company in 1901 at
the rate of 8 per cent. The company found its origin with
Canadian Pacific Railway shareholders, Canadian Pacific in-
terests being to-day largely represented on its board by W.
J. Shaughnessy, R. B. Van Home, W. F. Angus and Sir
Thomas Tait.
It is understood that the new 7 per cent bond issue
will be senior to the outstanding $1,200,000 of common
shares, and junior to $356,000 of first (closed) mortgage
bonds, due 1934. Public issue of the new bonds, will it is
expected, be made within the next two or three weeks.
UNLISTED SECURITIES
Qjotations furnished to The
, & Co., Toront
AbitibiGen.Mtge.6'sr40>
Alta. Pac. Grain... com.
" " "... .pref.
American Sales Bk...6-s.
Belding. Paul pret
B'ndr'm-Henderson com.
British Amer. Assurance
British American Oil
Burns. P. 1st MtRe. 6's. .
Can.Machmery pref.
6-s.
Canada Mortgage
Can. Oil pref.
Can. Salt 6's.
Can. Westinghouse
Can. Woollens com.
pref.
Cock^hiitt Plow pref. 7%
Bid
Ask
S8
130
142
78
84.50
911
70
74.50
60
7
10.50
31.50
32
93
99
51
73
82
64
70
82
96.50
102
107
15
25
60
70
54
58.50
Coll ng\voodShipb'dg.6*s
Crown Life Insurance...
Cuban Can. Sugar., pref,
Davies William 6-5
Pom. Iron &Steel5's 1939
Dom. Power pref
DunlopTire pref
■• fi-s
Eastern Car 6's,
Eastern Theatres., .com.
Ooodyear Tire. ...77o pfd.
G'rd'n,lr'nside&Fare6's
Harris Abattoir 6's
Home Bank
Imperial Oil
KingEdwardHotel.com.
..7's.
Bid
Ask
90
75
19.50
94.50
99
45
64
70
88
90
86
92
89
85
11.50
14
48
54
55
89
95
98
100.50
105
110
64
69
74
80
Lake Superior Paper. 6's.
Loew's, Ottawa, . . .com.
Manufacturers Life
Massey-Harris
Mattagami Pulp. . . .com.
Mercantile Trust
Mexican Nor. Power.. S's
Morrow Screw 6's
Murray- Kay pref.
National Life
Neilson. Wm 6's.
North Star Oil pref.
Nova Scotia Steel 6% deb
Ont. Pulp... 8's
Provinciale Bank
Riordon . . com. (new stk.)
.. pref. (new stk.)
R. Simpson pfd.
Southern Can . Pow . com
St. Lawrence Sugar. .6's,
Sterling Bank
Sterling Coal com
Toronto Paper 6's
Toronto Power. 5's (1924)
Trust &Guar
United Cigar Storescom.
-pref.
Western Assurance
Western Grocers. . .pref.
WhalenPulp pref.
■■ ...7% Deb.
May 6, 1921
THE MONETARY TIMES
39
WE OFFER
Alberta Municipal District
AND
Rural School Bonds
Maturing serially) in 10 lo 20 vears.
To yield 7i% lo 8%
W. Ross Alger & Company
INVESTMENT BANKERS
Royal Bank Chambers Bank of Toronto Bldg.
CALCARY EDMONTON
NIBLOCK & TULL, Limited
STOCK, BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Elxchange
Calgary, Alta.
BROOK & ALLISON
Real Estate Loans and Insurance
RENTAL AGENTS VALUATIONS MADE
REGINA, SASK.
The Bond House of British Columbia
WE ARE :n the market for
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C. Victoria, B.C.
New Issue $37,000.00
CITY OF TRAIL, B.C.
7% Bonds
Payable in New" York, Toronto and Trail.
Due March ht, 1941. Legal Opinion: Malone, Malom- & Long
In consideration of Trail's excellent financial standing we
unficaitstinsly recommend these bonds for investment.
Special iiicular on requal. Suhjecl lo prior sale.
PRICE: lOO AND INTEREST
Gillespie, Hart & Todd, Ltd.
Cnvcrnmcni. .Municipal. Corporalion anj Foreign Bonds
Main Office: 711 Fort St. - VICTORIA, B.C.
Branch - - - VANCOUVER, B.C.
Oil Leases in Northern Alberta
\vi.!iTi-:
JOHN S. LEITCH
305 Electric Railway Chambe
WINNIPEG. Manitoba
^iiiiiiiniiimiiiiDiiiiiiiiiiiniiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin^
WE have 450 good businesses for sale in the central
portion of Alberta. Everything from a General
Store to a small Confectionery
If you want a business in Alberta you want -js.
WHYTE & CO., LIMITED
Buiinesi Brokers
111 Pantages Building - Edmonton. Alberta
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cable Address. Topeco. Western L n. .ind A.B.C.. Sth Edition
CALGARY, CANADA
SELLING
MUNICIPAL
BONDS
THE coniiecling link between the borrow-
ing- municipality and the bond buyers of
Canada, as well as those in the L^nited
Stales that are specifically interested in Can-
adian Securities of this class, either as indivi-
dual or institutional buyers, is
THE MONETARY TIMES
OF CANADA
Bond offerings advertised in T/ie Monetary
Times are assured of getting before a large
and directly interested clientele.
Rates for advertising furnished
upon application.
The Monetary Times
TORONTO WINNIPEG
QiiiiiiiiiiiiiiiiiiniiniiiiiiiiuiiiiiiBiiiiHiiiiiii
THE MONETARY TIMES
Volume 66
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
AbitibiP.&P...
Asbestos Corp..
.pfd.
,'.ptd.
Amcs-Holden
Atlantic Sugar
Bell Telephone
Brazilian T.L.& Power
Brompton Pulp* P...
Canada Cement .......
...pfd.
Canadian Car
Can. Con
Can. Cottons
•■ pfd.
Canadian Gen. Elec...
Can. Steamship
• ■• pfd.
•• ■• Deb.
•■ ■■ ...Vot. Trust
Con. Mining* Smel...
Det Rys
Dom. Canners
" pfd.
Dominion Bridge
Dominion Glass
•• ...pfd.
Dom. Steel Corp
..pfd.
DominionTextile
...pfd.
HiUcrest pfd.
Howard Smith
:: ■■ ....pfd.
Illinois Tract
•■ pfd.
Lake of the Woods.. .
Laurentide
Loco
Lyall
Macdonald Co
Mont. Cottons pfd.
Montreal Power
Tram
..Deb.
Telegraph...
National Breweries —
Ogilvie pfd.
Ottawa
Penmans. pfd.
Porto Rico
Price Bros
Quebec Ry. L. H.&P..
Riordan Pulp & P
•■ ..pfd.
Scotia pfd.
Shawinigan W. & P
St. Ma
Sales Open High Low Close
35 30J i 333
She
.-\Vn
.pfd
• pfd.
Steel Co. of Canada.
•■ ■• ■■ pfd.
Toolie Bros
Toronto Ry
VVabasso
Wayagamack P. & P.
Winnipeg Ry
Woods iMfg. Co. ... pfd.
lEaiiks
Commerce
Hamilton
Hochelaga
Merchants
Molsons
Montreal
Nationale
Nova Scotia
Royal
Standard
Toronto
Union
RniMis
Asbestos Corp
Bell Telephone Co
Calgary Power
Can. Cement
Can. Cottons
Can. Rubber
Cedars Rapids Mfg....
City Mont. Dec. 6's, 1922
■■ HayS's. 1923
" Sept.B's. 1923!
Dom. Can.W.Loan. 1925!
19311
t937j
Victory Bonds. 1924...
1934...
1922...,
1927...
1937....
1923
1933...
40| 43}
104 I IU4
B9i i 69j
80 80
43i 43i
76|
MOtiVKKAl— Continued.
9500
1000
1000
7i«K)
122
2021
4011
2410'.:
71710
32286
90li7
14047
30GB9
42133
988
95
92i
Bond.s
Dom. Cottons
Dom. Coal
Dom. Iron
Dom. Steel
Dom. Textile
Lake of Woods
iMont. Tramways^...
National Brewerfes .
Ogilvie Flour
Ontario Steel
Penmans
Sherwin-Williams...
Steel of Can
Wayagamack P. &P.
Winnipeg Elec
Sales Open High Low Close
2000
22S6
6000
isoo
5700
6IO0I 93i
6100; 77
1000 8OJ
TOKOHTO— Week Euded May 4tli.
Stacks
Atlantic Sugar
Abitibi
Barcelona
Bell Telephone
Brazilian Traction.
B.C. Fish
Burt, F. N
Sales Open High Low Close
Canners
adian Pacific R.
Can. Gen. Elec
...p
Canada Steamship.
Con. Gas
Coniagas
Crown Reserve.. -
Dome
Duluth
Ford Motor
Loco
MacUay Companit
Maple Leaf
.pfd.
pitd.
.pfd.
Quebec R.L.H. & P..
Riordon.. .
Rogers
...pfd.
Tooke
Toronto Ry
Tucketts pfd.
Twin City
Winnipeg Elec
Kniiks
Dominion
Hamilton
Imperial
.Merchants
.Montreal
Nova Scotia
Royal
Standard
Toronto
Union
Loiiii iiiHl Trust
Col. Inv
Land
Can. Perm
Toronto .Mtg
Tori
ato Ci.
usts.'.
1 Trust.
ICiiiuLs
Can. Bread
Canners
Elec. Dev
Penmans
Rio. Jan. T., L. & P..
1000
2660
'eooo
2000
1000
i3 il
44i i 40J
TOKOXTO— Continued
War Loans
Dom. Can.W.Loan. 1925
1931
1937
Victory Loan 1922
1923
1927
1937
1933
1924
'■ 1934
Sales
Open
High
Low '
94*
20200
94J
95
4200
93
93
92*
24400
96J
96j
96i
87100
98i
98.90
98i
93050
97^
98}
97i
57050
974
98.25
97i
234650
98}
99t
984 i
30890(1
96:i
97.90
%i
43200
9fii
96.90
96
i06350
93J
95
93}
94.95
92.50
96.75
98.50
WlWKIPEft— Week ended Apr. :M»tli.
1937..
1933..
1934.
War Loar
'■ 1931 .
•• 1937 .
Great West Per
6500
8450
11100
8250
41090
400
400
Open High 1 Low
.\EW YORK— Week euded Apr. 80tli.
Sales Open High Low Close
Canadian Pacific
Canada Southern
Nova Scotia S.&Coal.
Granby Consolidated . .
ICoiids
Dom. of Can. 5% 1921
5i% 1921
5% 1926
' 5*% 1929
596 1931
Ontario Silver Mining.
4000
17000
43000
31000
92i
92i
tOMDOM, Eng.— Week ended Apr. «Srd.
tiov't. A Mnn.
Alberta 44%
B.C. 4J%
Canada.. 3i% 193050..
" ....3% Reg...
" .... 4% 1940-60.
" .... 4% 1920-25.
Calgari' 4A% deb.. .
Edmonton 5% bds.23-S3 .
5% debs..
Moose Jaw 5% debs
Montreal 4A% Reg..
4% cons.deb.
N. Brunswick 4% Reg.
Nova Scotia 4*9o cons
Newfoundland 3j%bds
Quebec 4% deb
Regina 4j% debs
Sask. S}% Reg
Saskatoon 5%
Toronto 4%
VancVer 4% cons. '50-2
Victoria 4% cons...
3% cons...
3i% 1923..
•• 447o cons..
4j% deb. -20-25 .
.54% cons...
Winnipeg 4i% 1943-63.
4% cons....
Uallways
Can. Nor. 4% deb. ...
" •■ 4%cons.deb.
Pac. 4%deb.
Can. Pac
" 4% deb.
'■ 4% pfd.
G.T.P. Br. i% bd; 1939.
G.T.P.4%deb 1
G.T.P. 4% 1955
Gr. Trunk 4% guar.!
Gr. Trunk5% 1st. pfd..
Gr.TrunkS%2ndpfd..
Gr. Trunk 4% 3rd pfd.. I.
Gr. Trunk 4% cons
Gr. Tr. West. 5% deb. .1 .
Ont. & Quebec 5% deb.
P. Gt. East. 4^% deb. '42: ,
Ind.. Fin., Etr.
Can. Car 6% bds
Can. Cement 6;. bds... .
Can. West Lumber 5% .
Can. Gen. Elec
Shawinigan \Vater
Can. Bk. of Commerce .
Bank Montreal
High Low Clo
73*
914
76*
74i
774
93*
62j
62}
S6i
82i
741
77*
72}
62i
625
554
66i
73*'
72}
71i
9ol
571
83i
72)
141
664
61
83i
584
72}
78}
USJ
45*
115i
451
llSi
454
115i
May 6, 1921 THE IM O N E T A R Y TIMES
New Issue $5,000,000
Province of Ontario
Fifteen-Year 6% Gold Bonds
Dated 2nd May, 1921 Due 2nd May, 1936
Principal and half-yearly interest (2nd May and 2nd Nov-
ember) payable at the office of the Treasurer, Toronto,
or at the Bank of Montreal, Montreal.
Denominations: $ 1 ,000 and $500.
Bonds may be registered as to principal.
Legal Opinion : E. G. Long.
These bonds and the interest thereon are a direct and prim-
ary obligation of the Province of Ontario and a charge
upon the Consolidated Revenue Fund of the Province.
Price : 99.50 and Interest
Yielding over 6.05%
Interim certificates will be issued pending delivery of
definitive bonds.
Orders may be telegraphed or telephoned at our expense
and delivery will be made free of expense to purchaser.
Wood, Gundy & Co. Aemilius Jarvis & Co.
C. p. R. Building 103 Bay Street ^""""^
Toronto Toronto
Telephone Main 4280 Telephone Main 5966
Dominion Securities A. E. Ames & Co.
Corporation Union Bank Building
26 King Street East Toronto
Toronto Telephone Main 4020
Telephone Main 4234
42
THE MONETARY TIMES
Volume 66
Corporation Finance
Canadian Consolidated Felt Had Fairly Good Year— Nova Scotia Tram-
ways Lost Money in 1920 — March Statement of Canadian Pacific Railway
Shows Improvement in Affairs of the Road — Brazilian Earnings Increasing.
Sydney Mines Electric Co., Ltd.— The C&pe Breton
Electric Co., Ltd., has purchased the property of the Sydney
Mines Electric Co., Ltd., for $80,000, but the deal must have
the approval of the board of public utilities before it can be
consummated. The consideration is eight hundred shares of
the preferred stock of the Cape Breton Electric Co., Ltd.
Calgary Gas Co., Ltd. — The company will be taken over
by the parent company, the C&nadian Western Natural Gas,
Light, Heat and Power Co., Ltd. This concern will sell gas
to Calgary consumers dating from midnight May 31 next.
The price will be $1.35 a thousand cubic feet less a ten-cent
discount, or $1.25 net for cooking gas and 85 cents less 10
cents discount or 75 cents net for heating furnace gas.
Brazilian Traction, Light and Power Co., Ltd. — Gross
earnings of the company in March, 1921, amounted to 13,-
102,000 milreis, compared with 9,900,000 milreis in March,
1920. Net earnings were 6,522,000 milreis, an increase over
the same month last year of 1,212,000 milreis. For the
first quarter of the current year gross show a^n increase of
8,982,000 milreis at 37,918,000 milreis, while net earnings at
18,418,000 milreis show an increase of 3,014,000 milreis.
Goodyear Tire and Rubber Co. of Canada. — Approv&l of
the proposed reorganization scheme of the company is being
given by shareholders. Last week preferred stockholders re-
ceived two letters, one from the company outlining the pro-
posed scheme and the other from the financial houses which
distributed the 7 per cent, preferred issue and who are now
advising in favor of the adoption of the proposed plans.
Replies from shareholders so far are favorable, but should
serious objections be voiced a meeting will be called.
The advantages of the scheme pointed out in the letters
to shareholders, are that the issue will greatly improve the
position of the company, as they will replace overdue notes
now outstanding to the amount of $2,800,000 and $300,000
current account, on which if payment were enforced at pre-
sent the company would be put into liquidation. Under the
plan submitted the annual interest charge on the liabilities
is reduced, in addition to which the floating debt is to an
importa.nt extent converted into capital.
Nova Scotia Tramway and Power Co. — Nineteen-twenty
was a trying one for the company, according to the annual
report and the enterprise was unable to earn its fixed
charges, though they have eJI been paid when due. Pei-mis-
sion to increase its fares to 7 cents or 6% cents for tickets
helped the gross earnings, though the company suffered the
usual decrease in patronage that has occurred elsewhere
following a rate increase. An increase of 20 per cent, in
wages also reduced net e&rnings, and went far to offset the
increase in fares. The ratio of operating expenses rose from
86.8 to 96.4 per cent. High cost of m&terials, especially coal,
was another adverse condition. The net earnings were $87,-
629, which, after payment of interest and amortization
charges of $202,526, left the loss on operation for the year
of $114,896. This compares with a profit of $66,891 in the
previous year, which enabled dividends on preferred to be
paid in 1919.
Although business in Halifax is quiet, as in other cities,
the directors look for an improvement in the company's
operations. There will be a full year with the increased rate
of f&re, and it is expected that a somewhat higher rate for
lighting will be allowed, from which increased earnings to
the amount of $50,000 are expected. Improved earnings
from gas is also anticipated.
"Operating expenses," says the report, "have in general
reached their highest point, and will in all probability de-
crease. The amount of maintenance necessary to be done
will be less than last year. The cost of material is already
showing a downward tendency, and with decreased living
costs wages should tend downw&rd as well."
Canadian Consolidated Felt Co. — The 1920 annual finan-
cial statement of the company is a fairly good one. Net sales
increased to $1,749,584 from $1,234,030 in 1919. Expenses
wei-e higher, however, reducing operating income to $89,178,
as compared with $136,410 in 1919. After deducting interest
the surplus was $20,721, against $71,877, while with previous
carry forward added in profit and loss, the balance was $342,-
637, "against $321916 carried into 1920.
The balance sheet shows a decline in current assets,
current liabilities and working capital. Current assets at
$655,373, compared with $944,446 in 1919; current liabilities
at $520,362, compared with $760,308 in 1919, and working
capital at $135,011, compared with $184,138.
In his report to shareholders, the president, W. A.
Eden, says that previous to 1920, the company's products
were made in one factory, the other having been leased to
the Consolidated Rubber Co., but with prospects that both
plants could be operated to capacity in the coming year, the
other factory was taken over and equipped, which meant an
outlay of $127,529. Business, however, did not come up to
expectations and the president states that it is now evident
tha.t the volume of sales in 1921 will be less than in 1920.
Canadian Pacific Railway. — The March earnings' state-
ment reflects an improvement in the affa-irs of the road.
Traffic receipts showed a decrease of slightly more than
$1,000,000, but this was more than offset by a decline in
operating expenses. The following are the details of the
March earnings, with comparisons: —
March. 1921. 1920. Decrease.
Gross $14,705,726 $15,715,936 $1,010,209
Expenditure 12,254,818 13,758,171 1,503,353
Net S 2,450,908 $ 1,957,764 *$ 493,143
Earnings for the first quarter are: —
Gross $41,940,143 $43,187,609 $1,247,465
Expenditure 38,034,418 39,930,030 1,895,611
Net $ 3,905,725 $ 3,257,579 *$ 648,148
'•'Increase.
The most important announcement made at the annual
meeting this week in Montreal was that concerning new
financing, which will be done in London, England. E. W.
Beatty, president, in this regai-d points out: "Your directors
have recently accepted a proposal for the acquisition by
London, England, interests of a substantial amount of 4 per
cent consolidated debenture stock at a price which was very
favorable. This is tho first application for the acquisition
of debenture stock from England since the outbreak of hos-
tilities in 1914, and is of the utmost significance as indi-
cating the resumption of interest in your principal capital
security in Great Britain. It may conceivably be the first step
towards the re-establishment of a market in England for the
ranking Securities of the company, vv-hich cannot but have
an important influence on its future financing.
Among the purposes of the new stock are the purchase
of three new steamers, which will cost $22,600,000, and the
construction of the Suffield Southwestern branch of the rail-
way to a l°ngth of thirty miles at an estimated cost of $30,-
000 per mile.
^fey fi, 1921
T'HE MONETARY Ti:\IES
DEBENTURES FOR SALE
City of Sarnia Debentures
TENDERS WANTED
Tenders will be received by the undersigned up till 3
p.m., Tuesday, 17th May, for the following equal annual in-
stalment coupon debentures:
$65,180.16 Pavement lO-yrs. 6%. Dated Dec. 31, 1920.
86,147.68 Pavements 10-yrs. 6%%. Dated Dec. 31, 1920.
38,107.91 Sidewalks and Sewers .5-yrs. 6'2'f. Dated Jan. 1,
1921.
Tenders must be made for each block separately.
Accrued interest will be added to price on delivery.
Delivery and payment to be made at Sarnia.
Interest payable annually.
The bonds will be in denominations of §1,000, as far as
possible.
The lowest or any tender not necessarily accepted.
P. A. BLACKBURN,
City Treasurer.
Sarnia, Ont. .550
DIVIDEND NOTICE
CANADIAN PACIFIC RAILWAY (OMPANY
DIVIDEND NOTICE
At a meeting: of the Board of Directors held to-day a
dividend of two and one-half per cent, on the Common Stock
for the quarter ended 31st March last, being at the rate of
seven per cent, per annum from revenue and three per cent.
per annum from Special Income Account, was declared pay-
able on 30th June ne.xt to Shai-eholders of record at 3 p.m.
on 1st June next.
By order of the Board.
ERNEST ALEX.A.NDER,
Secretary.
Montreal, 4th May, 1921.
(occtti/^ta fy. ^t
INSURANCE ENGINEER AND BROKER
ALU CLASSES OF INSURANCE WRITTEN
.1T~ r^OOa, MAMMOND BuiLOINO. MOOSE jAW. SASK.
"Th
e
M
onetary
T
i m e s "
will be sent you for four mo
our TRIAL SUBSCRIPTION
mhs
plan
for
$1.00
Just sen
d a
doll
ar bill and your name
and address
ft
Bureau of
Canadian
Information
"T'HE Canadian Pa-
cific Railway,
through its Bureau
of Canadian Infor-
mation, will furnish
you with the latest reliable information on
every phase of industrial and agricultural
development in Canada, in the Reference Li-
braries maintained at Chicago, New York and
Montreal are complete data on natural resources,
climate, labor, transportation, business openings,
etc., in Canada. Additional data is constantly
being added.
No charge or obligation attaches to this service.
Business organizations are invited to make use
of it.
Canadian Pacific Railway
Department of Colonization and Development
165 E. Ontario St.
Chic«(!o
335 Windsor Station
Montreal
1270 Broadway
New York
Is your way as good?
A MANUFACTURING firm says, "The
Underwood Condensed Billing Type-
writer has saved its cost every three
months since it was installed. We consider it
the best investment we ever made."
If you have in mind any phase of keeping
books by machines, consult with us.
United Typewriter Co.
In all Canadian Cilic
THE MONETARY TIMES
Volume 66
"The finances of the Canadian Pacifi.' Railway are in
excellent shape," said Mr. Beatty, "and, wliile the balar.ce
in the bank is not as large as it was at the end of the last
fiscal year, the anioui.t is, nevertheless, a very substantial
one, and there is still unissued oi- undisposed of over sixty-
seven million dollai-s of consolidated debenture stock, the
issuance of which has been heretofore authorized or that you
will be asked to sanction at this meeting. Even in the trying
times during and immediately succeeding the war the pro-
gression of the ccmpany has been steady and sure, and the
asset statement shows an increase since 1914 of an amount
in excess of one hundred and seventy million dollars.
"About the middle of December a pronounced contrac-
tion in busiiiess took place, resulting in diminished traffic of
all description. This depression still continues, but by rigid
economies the net results for the first three months of this
year are somewhat in excess of those of the corresponding
period of last year, notwithstanding the greatly increased
costs of labor prevailing in 1921.
"Increases in wages may have been justified at that time
by the abnormal increase in the cost of living, but they were
accompanied by alterations in working conditions of such a
character as to impose heavy, and, in the view of the com-
panies, unnecessary burdens on the transportation agencies
of North America The conditions which rendered them neces-
sary being raipdly ameliorated, it is apparent tliat readjust-
ments will be essential. These increases in wage scales, while
not the only element which entered into tha increase in
freight and passenger rates, were still a very outstanding
and potent factor, and when the readjustment of wages takes
place, it is only right that the rate situation should be again
reconsidered with a view to revision downward.
"The rates are high, but I am not one of those who be-
lieve that the existing scale of wages and consequent high
freights is responsible for the present business depression;
the causes of that go much deeper than the mere standard
of wages paid to any given class, and are woi'ld-wide. Never-
theless, a reduction in both wages and freight rates would .
have a pronounced and beneficial effect on the general senti-
ment in the country through the encouragement it would
give and the confidence that normal conditions had been more
nearly reached."
At a special general meeting immediately following the
directors were authoi-ized to issue bonds, debentures or other
securities as they deemed fit, and at such times as they
should approve, as collateral to the consolidated debenture
stock. In this connection no amount was mentioned, but
President Beatty stated that there still remained unissued
$67,000,000 of consolidated debenture stock. The annual
meeting lasted fitfeen minutes and the special session five
minutes.
ONTARIO SAFETY LEAGUE
The annual meeting of the Ontario Safety League was
held in Toronto, April 27-28. J. S. McKinnon, president of
the Canadian Manufacturers' Association, declared his asso-
ciation was greatly interested in the work of the Ontario
Safety League. He referred to the large increase in the
number of accidents reported to the Workmen's Compensa-
tion Board during the past year, and the increase in compen-
sation paid by the board, which amounted to $3,883,994 over
the year 1919. He said the contention of the C.M.A. was
that the Workmen's Compensation Board should be of a
judicial character. In concluding he asked for the estab-
lishment of a national university, fearing that provincial in-
stitutions would foster narrower sentiment.
Joseph Gibbons, who spoke for organized labor, told the
gathering that too much attention was paid to the radical
element of the trades union movement, and too little credit
given to the international trade union movement, for the
work they had done in the past in the interests of humanity.
He contended that the trades union movement had always
supported all progressive legislation.
RECENT FIRES
Loss for Week Totals $377,700, Compared with $84,000 Last
Week — Auditorium Rink Building in Regina
Suffered Heaviest Loss
Belleville, Ont. — April 29 — Ideal Vulcanizing Co., Front
Street.
Edmonton, Alta. — April 28 — Market Tire Repair Shop
and Market Harness Shop at 10175 99th Street. Cause,
cigarette stub.
Glace Bay, N.S. — April 26 — Barn of Louis Manuel, Park
Street. Loss, $700.
Greenock, Ont. — April 26 — Hotel buildings. Loss, $5,000.
Hamilton, Ont. — April 28 — Residence of Mrs. Fanny
Emichelima, 790 Burlington Street. Cause, incendiarism.
Hensall, Ont. — May 3 — Blacksmith shop of George
Brock, livery stable of Thompson Murdock and woodshop
operated by Colin Hudson.
Lindsay, Ont. — May 4 — Home of Robt. Deyell, Ops
township. Cause, defective chimney.
Montreal, Que. — May 4 — Coal and wood yard, office
building and residence of S. Leclerc, 1646-8 St. Lawrence
Boulevard. Loss, $20,000.
North Devon, N.B. — May 2 — Residence of James David-
son. Loss, $3,000.
Outlook, Sask.— April 30— C.P.R. coal dock. Loss, $25,-
000.
and
Regina, Sask. — April 29 — Auditorium rink building
180 cars. Loss, $250,000, partly insured.
Riverside, N.S. — May 1 — Home of Chas. Foi-bes. Loss,
$1,000.
Rossmore, Ont. — April 29 — Residence of Wm. Sexsmith.
Partly insured.
Shawville, Que. — April 27 — Business section. Loss, $65,-
000, partly insured.
Stewiacke, N.S. — May 2 — McNutt Hotel, several build-
ings and twelve dwellings.
Toronto, Ont. — May 3 — Royal Bedding Co., 49 Peter
Street. Loss, $1,000.
Windsor, N.S. — April 30 — Bank of Nova Scotia building.
Winnipeg, Man. — April 28 — Dry goods store of J. Green-
berg, 476 Selkirk Avenue. Loss, $7,000, partly insured.
ADDITIONAL INFORMATION CONCERNING FIRES
Manitoba. — The fire commissioner's statement for the
month of March states that during the month there were 157
fires, with a loss of $141,139. There were 83 dwellings de-
stroyed, 17 stores and 16 farm buildings. Stoves and fur-
naces caused 43 fii-es, carelessness with matches 19, and
careless smokers 16.
Nanaimo, B.C. — March 24 — The general store, occupied
by Malpass and Wilson, was destroyed by fire. The loss is
$25,000, with insurance of $15,500" in the Northwestern
Mutual, Royal, State of Pennsylvania, Northwest National,
Fidelity Phoenix.
Vancouver, B.C. — April 13 — The frame factory, ma-
chinery and stock of the Mill Cut Homes and Lumber, Ltd.,
was destroyed by fire. The fire, which is believed to have
been caused by electric wire, caused a loss of $16,000, with
insurance of $11,000 in the Dominion Fire, Nationale of
Paris, London Mutual of Canada, Globe and Rutgers, and
North Empire Fir2 Insurance Companies.
At the E'nnual meeting of Hamilton Clearing House, the
following committee of management was appointed: — Chair-
man, D. B. Dewar, Canadian Bank of Commerce; vice-chair-
man, J. Stephens, Bank of Toronto; manager and secretary-
treasurer, A. C. Rowe; R. H. Harvey, Royal Bank of Canada;
E. V. Illsey, Standard Bank of Canada; A. M. Bethune, Do-
minion Bank.
Hipi.isHi-.D KvsRv Fkiday
The Monetary Times
Printing Company
of Canada, Limited
'The Canadian Engineer"
Trade Review and Insurance Chronicle
of Canada
Established 186";
Old as Confederation
J AS. J. SALMON D
President and General Majiager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
Business Profits Tax Not to be Renewed This Year
Remaining Luxury Taxes to be Abolished— Sales Tax is Extended, and New Duties Imposed
on Liquor— Few Changes in Customs Duties— Sir Henry Drayton in Budget Speech Sum-
marizes Changes Proposed This Year, and Outlines Financial Position of the Dominion
FINAXCLAL changes proposed by the government, as an- and proprietary medicines and pharmaceutical preparations,
nounced by Sir Henry Drayton in his budget speech on which was the rate in effect before last ye&r.
May 9, were closely anticipated. The business profits tax Increase of present tax on sales of manufacturers, whole-
will not be renewed, and there is no change in the income salers, jobbers and importers from 1 and 2 per cent, rates on
tax, nor to a^ny degree in the tariff. Heavier duties are to domestic transactions to IVi and 3 per cent., respectively,
he placed upon imported and domestic liquor, however. Ex- and the import rates from l\k and 3 per cent, rates to 2%
tensions of the sales tax are to make up for revenue other- and 4 per cent., respectively; the exemptions being foodstuffs
wise lost. The proposals may be summarized as follows: — in their natural state, initial sales of farm produce by the
Dropping of business profits tax. farmer of his own production, and the first products of fish-
Elimination of the few remaining luxury taxes, such as eries, mines and forests,
on confectionery. Two dollars license fee for every manufacturer and
Xo general revision of the tariff, but certain changes business man affected by above sales and excise tax.
made to implement trade agreements with France and with All of these taxes go into effect on May 10.
the British West Indies. , . „
Notice is given of two changes to be made in the Cus- ncrease m e
tonis Act. The purpose of the first is to secure a more effi- The minister referred to the country's economic develop-
cient carrying-out of the principle of the existing dumping ment and trade, pointing out the necessity for preservation
provisions, and has to do with the valuation on which duties of the home market. Referring more especially to finances,
are assessed. The act ■'.t present provides that the value he said: —
shall be "the fair market value, when sold for home con- "The country's revenues have been well maintained,
sumption, in the principal markets of the country whence and The revenue for the fiscal year, when the accounts are finally
at the time when the goods were exported directly to Can- closed, will reach approximately $432,000,000, as agamst
ada." The amendment will add to this "such value in no $349,74(5,334 for the year before. This marked increase, in a
case to be lower than the wholesale price thereof at such year of deflation, can only be regarded as satisfactory. The
time and place," and in addition provides that the value for i^hief sources of revenue are as follows:—
duty shall not be less than the actual cost of production of Customs ' $163,000,000
similar goods at date of shipment direct to Canada, plus a Excise 37,200,000
reasonable profit thereon. The other amendment relates to Post office 26,000,000
the valuation for customs purposes of foreign currencies. Business profits war tax 40,000,000
The present customs practise is to convert the foreign de- Income tax 46,.500,000
predated currency into Canadian on the basis of existing ex- Inland revenue war tax 79,O.'5O,O00
change rates. It is proposed that no reduction in excess of Other war taxation 2,35.5,000
50 per cent, of the standard or proclaimed value will be al- ..jhe estimated expenditure for the year amounts to
lowed, no matter what the exchange rate is. Where the rate $533,368,077, as against a total outlay provided by the esti-
ol exchange is adverse to Canada, the value for duty will be mate's of $613,225,411. The total expenditure has been met
computed at the rate of exchange existing at the date of the without new loans being covered entirely by current revenue
shipment of the goods. ^^^ ^^^^ resources available at the close of last year. The
To make stringent regulations forcing every imported amount of cash resources from the past year and applicable
article to have country of origin plainly stamped upon it. t^ 1921-22 will be relatively small. The figure cannot be
Changing present excise duty of three dollars a gallon definitely stated, as sundry expenditures and revenue for
on spirits and two dollars additional duty under the luxury 1920-21 "have yet to go through the books,
taxes to a straight ten dollars customs rate.
Excise tax of eight to fifteen cents a pack on playing Expenditures
cards at the time of sale by Canadian manufacturer or when "In considering the consolidated fund expenditure, hav-
taken from Custom House. ing regard to the country's pre-war activities, it will be
Excise tax of thirty cents a gallon on wines of all kinds found that these amount to some $141,000,000. Consolidated
except sparkling wines. fund charges connected with and growing out of the war,
Excise tax of three dollars per gallon on champagne and such as increased interest, pensions, military records, Air
other sparkling wines when taken from Canadian manu- Board, expenses of Land Settlement Board, Soldiers' Civil
faeturer, but not when exported; excise tax on distilled Re-establishment, etc., and such new services and expenses
spirits of $9 a gallon, with rebate of 99 per cent, of duties on as cost of collection of war taxation, bonus to the Civil Ser-
alcohol to hospitals on spirits actually used for medicinal vice, aids granted for technical education and road building,
purposes, and being only $2.40 a gallon when used for patent etc., approximate $225,000,000. Other war expenses, includ-
THE MONETARY TIMES
Volume 66
ing soldiers' land settlement, loK'ns and demobilization, in-
crease the total payments resulting from the war and new
services, to .'i!277,000,000. Services similar to these provided
for by the consolidated fund expenditure of $141,000,000 this
year, as referred to above, cost in the year 1913-14
$127,384,472.
"Of the expenditures, the total chargeable to consoli-
dated fund is $362,600,000. Special expenditure, including
cE.pital of $36,972,000, and demobilization of $20,000,000, ac-
counts for a further sum of $57,102,000. Then there are
investments, classed as non-active for the time being, as
follows: —
Canadian Northern Railway $48,611,077
Grand Trunk Railway 26,520,000
Grand Trunk Pacific Railwr,.y, receivers'
estimates 18,300,000
Grand Trunk Pacific guaranteed interest 3,500,000
Quebec Harbor Commissioners 335,000
Total $97,266,077
"And, finally, disbursement for railway equipment of
$16,400,000.
Surplus and Debt Reduction
"The revenues for the yea^r exceed the ordinary expenses
of the country, including all pensions and all current war
charges, by $69,400,000, and exceed the sum total of the
ordinary expenses, together with the regular charges to
capital and war, by $12,298,000.
"As already str.-ted, there have been no fresh borrowings.
On the other hand, the debt has increased by the amount
that the liquid surplus of the year before has been used —
namely, $101,368,077. It should be noted that out of avail-
able cash, tax-exempt bonds aggregating $89,228,300 have
been acquired and taken off the market. It is proposed to
cancel them. The result is that, having regard to the writing-
down of assets which took place last year, the net debt now
amounts to $2,350,236,700. An interesting observation may
be made as to the increase in debt.
"In the period 1896 to and including 1914 the net addi-
tions to the debt totalled $77,499,417. As compared with this,
during the period 1914 to date, if the writing-down of non-
active assets had not taken place and if the bare war cost be
deducted, but resulting current expenses arising from the
war, such as, for interest, pensions, etc., be nevertheless
charged, the net debt to-d&y would stand at approximately
$115,000,000 less than at March 31, 1914. The situation may
be otherwise expressed by saying that, notwithstanding the
largely increased cost of government, to the extent of this
sum the country's war activities have been financed out of
current revenue.
"Over and above all this the charges to the consolidated
fund of payments made on current war account from and
including the year 1914-15 to 1920-21 amount to $553,732,120,
and for new services and expenses $30,077,580, making a
total of $583,809,700. The net result is that war obligations,
current r,.nd capital, have been met and paid to the extent of
$696,809,700.
Estimates for Present Year
"All indications point to a falling customs revenue, and,
with the disarrangement of business consequent on imminent
tariff legislation of the United States, it is difficult to accur-
ately forecast the revenue for the coming year. The follow-
ing estimate (based on existing legislation) may be given: —
Customs $135,000,000
Excise 33,600,000
Post office 26,000,000
Interest on investments 19,000,000
Casual revenue 4,000,000
Inland revenue 72,000,000
Business profits and income tax 70,000,000
Miscellaneous war-tax revenues 2,000,000
All other revenues 11,000,000
Total $372,600,000
"The main estimates tabled call for a total expenditure
of $582,062,698, &nd the supplementary for bonus to the ser-
vice an additional $9,375,000. The policy of the government
is to pay at least all current expenses, including capital
charges, out of current income. The following summary
gives the details of these votes, properly appropriated to
their various objects: —
Estimated consolidated fund expenditure $343,021,594
Estima.ted capital expenditure 27,459,127
Estimated demobilization expenditure 7,777,380
Total $378,258,101
Investments. Non-active.
Canadian Northern Railway $ 50,000,000
Grand Trunk Railway 89,687,633
Grand Trunk Pacific Railway 26,000,000
Total $165,687,633
Investments. Active.
Soldiers' Settlement Bor.rd $ 32,000,000
' Housing loans 13,310,000
Sinking funds 2,181,963
Total $ 47,491,963
"From the above it will be seen that $378,258,101, in the
first instance, ought to be raised out of current revenue. It
is true that this amount includes capitpJ expenditure for
canals, public works, etc., capit^il expenditure which does add
to the equipment and facilities of the country. Under the
policy adopted, this, however, ought to be met out of current
revenue. It should be noted that this capital vote also in-
cludes $1,903,133 required for railroad equipment. It also
includes $7,000,000 for deficits in the Canadian Government
Railways proper, which must be regarded as a current
expense."
TO DEVELOP BRITISH-CANADIAN TRADE
About 50 Canadians attended a meeting on May 9 for
the promotion of a Canadian Chamber of Commerce in Lon-
don, Eng., and an executive committee was appointed to com-
plete the organization, which, it is hoped, will play a promin-
ent part in developing trade relations. Among those in-
cluded in this committee were: Lord Beaverbrook, Sir James
Dunn, Col. Hamilton, Sir George Brown and Col. Blaylock.
Col. L. S. Amery, parliamentary and financial secretary to
the Admiralty, and formerly Under-Secretary for the
Colonies, addressed the gathering. He expressed the belief
that Canada was destined in the fullness of time to rival, if
not outstrip, her great neighbor, but she could not do this
simply by imitating the policy of development peculiar to the
American Republic.
GLENS FALLS INSURANCE COMPANY
Nineteen-twenty was a' good year for the Glens Falls
Insurance Co., of Glens Falls, N.Y., premiums amounting to
$6,405,968, net. Losses amounted to $3,309,928, or 51.7 per
cent., of the losses.
The balance sheet section of the report shows that total
assets increased from $9,332,139 to $10,107,334. The reserve
for unearned premiums is shown at $4,823,784, compared with
$4,175,440, while there is a net surplus of $2,725,686, as
against $2,701,786 in 1919.
The Canadian organization of the company made good
strides, with S. C. R. Crocker as chief agent. Details of the
complete operations are not yet available, but in 1920, net
cash received for fire premiums amounted to $237,816, com-
pared with $191,848 in 1919. The net amount of fire insur-
ance at risk is now $25,366,595, while a year ago the figure
was $21,999,942.
May 13," 1921
THE MONETARY TIMES
SERVICE AT COST IN VANCOUVER
New Plan for British Columbia Electric Railway — Financial
Situation Healtiiy, But Caution is Necessary — Bene-
fits From Government Marine
(Staff Special.)
Vancouver, May 11, 1921.
WITH the approach of the tourist season in Vancouver
business is gradually improving, and an excellent
season is looked for. Shipping on the Pacific coast is on
the increase, and steady cargoes are provided for every addi-
tion to the Canadian Merchant Marine fleet. The C.P.R.
expect to add to their excellent Pacific coast service one
of the large, recently acquired German boats.
Upon the completion of the Canadian Government Mer-
chant Marine program, Vancouver will have twelve 8,300-ton
freighter carriers, making Vancouver their port home, and
should the requirements of the port demand, other vessels
will be transferred here from the .Atlantic to the Pacific run.
Although the Canadian Government Merchant Marine
vessels are ow-ned by the Canadian people, in which all have
a stake, they are not being operated directly by the govern-
ment, but when completed are handed over to an operating
company known as the Canadian Government Merchant
Marine, Limited. Thus the fleet must enter the shipping field
in all respects the same as every private-owned company, and
must compete for freight and buy supplies exactly as every
other privately owned company does. The broad policy of the
company has been to open new trade routes from Canada
and to put steamers on routes already covered, but which
need supplementing, in order to adequately handle the busi-
ness offered.
Notwithstanding the slump in foreign trade during the
past few months the Canadian Government Merchant Marine
vessels from Vancouver have made steady and well-ladened
runs to Australia and New Zealand, calling in with freight
to the Hawaiian and the Fiji Islands, as well as inaugurat-
ing the India and the Orient routes with bumper cargoes.
People in British Columbia feel that is is of great benefit to
the country that the many millions of dollars expended by
shippers for freight shipped on Canadian-owned and operated
steamers remain in Canada and tend to make the balance of
trade more favorable in their home country.
Service at Co-st System
Negotiations are under way between the British Colum-
bia Electric Railway Co. and the city of Vancouver and sur-
rounding municipalities for the revision of the company's
franchises. As tentatively agreed to the franchise will be on
a service-at-cost covering the whole of the company's opera-
tions on the mainland, and including railway, light, power
and gas service.. The franchise as drafted is to be sub-
mitted to the various municipalities and cities outside Van-
couver for approval.
The terms so far agreed to are that the company is to
have a return of six per cent, on its present investment, and
eight per cent, on new investments, a valuation of the com-
pany's property being one of the terms. Fares are not to
exceed seven cents in Vancouver, and light, power and gas
rates are not to exceed those at present in force, but a re-
adjustment of rates is to take place by a board of arbitration
every three years. It is expected that the stability this
franchise will give the British Columbia Electric Railway
Co.'s finances will enable it to raise further capital for de-
velopment. The company is faced with an expenditure of
$1,000,000 for further power development late this year, and
has already on order some of the machinery for an additional
unit at Stave Lake. Increase in demand for current for do-
mestic and industrial purposes is rapidly using up the com-
pany's available supply.
The change in the rule of the road from left to right
will be put in effect, it is expected, on or about Pecember 1.
The British Columbia Electric Railway Co. estimates its ex-
penses will amount to $1,000,000, and the provincial govern-
ment has granted $3.50,000 towards the cost of making the
change. The company will start immediately to rebuild its
cars preparatory to the change. Considerable new track
work will be necessary. It is probable that the change will
go into effect on the mainland before Vancouver Island, owing
to the mechanical problems in changing the electric railway
lines.
Financial Situation Sound
In an interview with General Victor Odium, vice-presi-
dent of the Royal Financial Corporation, as to the outlook on
the coast, he said: —
"Conditions on the Pacific coast are dull, and no very
marked change need be expected for some time. The lumber
industry, which is the business thermometer of British Colum-
bia, is depressed. The expected spring activity has not made
itself evident. .A good deal of building, on a small scale, is
going oh in and around Vancouver, but with the prairie and
export markets inactive, it is not sufficient to affect the out-
put of the mills.
"The mines, too, are feeling the effects of existing con-
ditions and very little work is being done, the same thing is
true of the pulp mills. Unemployment still continues on a
considerable scale; and it is probable that it will be more
or less in evidence throughout the year.
"But fundamentally, the situation is sound, for it is a
long time since British Columbia experienced a period of
general speculation. Comparatively few people are carry-
ing debit balances on land agreements. Moi-eover, more
than half the homes have become acquainted with public
bonds, and investment in this liquid form of security is quite
general. Manufacturing has taken the place of speculation
in Vancouver to a very large extent, and in time the terminal
city promises to be known as well for its manufactures as
for its ocean trade, its sawmills, its fish and its tourist traffic.
"So far this year, the spring has been cold and wet, and
tourist traffic has been delayed, but there is plenty of evidence
to show that it will assume large pronortions this summer.
It will cause a certain increase in retail activity, and will set
a good deal of new money in circulation.
"Summarized, the present is a time for economy and
caution, but not one for alarm."
Building Activity
R. Kerr Houlgate, prominent in financial circles here,
said in an interview with The Monetai-y Times: "While
business conditions generally are quiet in Vancouver, the
rents of business premises, apartments and dwellings do not
show any signs of falling. They were very low for some
little time prior to the war and for most of the war years,
but they gradually rose with the return of the population,
and in some cases are back to pre-war rentals. In spite
of the high cost of building during the last twelve months or
so, there has been extensive building of houses in all resi-
dential sections of the city and the surrounding municipali-
ties and there is still a good demand for residences. The
reduced price of vacant lots has influenced people to pur-
chase and build their own homes. This has been the cause
of the real estate activity in that class of property, which is
evidenced by the Vancouver Land Re<?istry Office return
for the month of April. 1920. The transactions that month
were: Deeds 833, agreements of sale 24.5, mortgages 228,
making a grand total of 1,306. while there were a fair
number of real estate transactions in business and semi-
business propei-ties, still the bulk of them were for resi-
dence Durposes.
"The Vancouver Real Estate Exchange has been con-
ductine: an advertising propaganda in the daily papers on
the subject of "Own Your Own Home" and recently gave
prizes for an essay competition on the same subject. This
resulted in many hundreds of essays being sent in and un-
doubtedly will help to make people have the desire to own
their own home and thus naturally become better and more
THE MONETARY TIMES
Volume 66
interested citizens in their community. This is one of the
many ways in which the red radical propaganda can be met.
"It is the experience of most mortjirage and investment
companies that mortgagee collections, both of principal and
interest, have been very good for some time past and are
the same to-day. A very large i number of mortgages that
were in arrears during the war period, have been brought
up to date and put on a satisfactory footing. The same
applies to the taxes, the arrears of which have been i-e-
duced. Whilst there has been the activity mentioned in
real estate, there are no signs of any boom, all transac-
tions being on a sound and healthy basis.
"Trade and commerce being the life's blood of any city,
the Vancouver Board of Trade, with over thirteen hundred
active members, has been a great factor in this and in look-
ing after every point of the city's interests. They believe
in co-operation and have travelled the length and breadth
of British Columbia organizing boards and getting to know
the people, and have also taken a very large interest in
the 'Foreign trade area question,' which is a live one at the
present time. They were largely, if not wholly, instrumental
in getting the government to change its ruling about send-
ing mail to the Orient on Japanese boats, by the order which
came through recently that any mails could travel over on
the C.P.R. mail steamers."
DOMINION MORTGAGE ASSOCIATION MEETS
Rural Credits Criticized as Subsidizing a Special Class —
Need for Prudence in Selecting Municipal Securities
(Special to The Moiu-tary Tiiius)
Winnipeg, M&y 12, 1921.
INVESTING institutions of Canada were well represented
r.'t the annual meeting of the Dominion Mortgage and In-
vestments Association, which opened in Winnipeg to-day,
and will close to-morrow. This is the first time that the an-
nual meeting has been held in the west.
The report of the executive committee was a very full
review of investment E-ffairs during the year. New mem-
bers of the association are as follows: Crown Life Insurance
Co., Toronto; Capital Trust Co., Ottawa; Crown Savings and
Loan Co., Petrolia; British Mortgage Loan Co., Stratford;
London Life Insurance Co., London; Provident Investment
Co., Toi-onto. Fire prevention to protect investments, mort-
gage clauses in fire insurance policies, commissions paid to
officers acting as fire insurance agents, Dominion seed grain
liens, taxes and other charges ranking ahead of first mort-
gages on property, rural credits in Ontario, succession duties,
taxes on corporations, and legislation affecting loan and trust
companies were among the subjects on which the committee
took action during the year.
Reports were also presented by the special committees
on membership, municipal finance, uniform returns, trust com-
panies, and Ontario legislation were also presented.
Horace L. Britt&in, director of the Citizens' Research In-
stitute of Canada, gave an address entitled "Citizen Co-oper-
ation in Government," in which he pointed out that the gov-
ernments of this country now spend about $550,000,000 per
year, which is $62 per capita, or $310 per family. With such
a large expenditure it is essenti&l that waste be eliminated.
A brief regarding loan and trust companies, prepared by
V. Evan Gray, superintendent of insurance for Ontario, was
presented to the meeting. It gives an exhaustive description
of the law regarding these companies.
"RuraJ Credits in the United States" were fully described
by E. D. Chassell, secretary of the Fami Mortgage Bankers'
Association of Chicago. D. J. Thom, K.C., of Regina, spoke
on "Land Titles Systems in the West," referring especially
to the Torrens system.
At the opening session a special committee was ap-
pointed to inquire into the whole matter pertaining to the
lien priority given to seed grain advances, the gathering-
agreeing with the statement of John Appleton, secretary,
that this was a "pernicious and quite unjustifiable practise."
Sharp criticism of the moratorium and of defaulting munici-
palities also featured the session which, in the absence of the
President, A. E. Holt, Montreal, was presided over by W.
E. Long, Toronto.
Changes of a Year
Mr. Long in presenting the report of the Executive
Committee, said the conference had met under a sense
of grave responsibility, A year ago business was active, the
demand for capital and commodities strong, and employment
was plentiful on an exceptionally high basis of remunera-
tion. They were now faced with some of the most serious
consequences of credit expansion and expenditure of capital
and labor on undertakings which did not yield wealth. Prices
of agricultural products had now fallen to almost pre-war
time levels, unemployment was serious, and great anxiety
existed as to the possibility of finding markets capable of
absorbing the country's exportable products. The serious-
ness of the situation was emphasized by the uncertainty of
the tariff policy governing those markets in the United
States and Eui'ope which hitherto had absorbed many of
their important products Money required to meet the natural
demand which arose in territory but partially developed
would have to be obtained from their own resources, he said.
Conditions would necessitate adjustment of the ma-
chinery in Canada to meet new mortgage conditions. In
giving essential public service, by prudently exercising their
functions as lenders on mortgage security, the organizations
concerned would be greatly aided if it could be stated, par-
ticularly in western provinces, that there was no legislation
of a discriminatory or restrictive character. A mortgage
fender, making a contract in conformity with existing
statutes, frequently found that during its currency new
legislation had been passed, which generally resulted de-
leteriously to the lender.
Municipal Finances Report
In the report of the municipal finances committee, refer-
ence was made to default in payment to cities and towns in
Alberta and Saskatchewan. In Manitoba, Ontario and Que-
bec, it was stated, the provincial municipal departments had
intervened and effected adjustments, which had averted loss
to debenture holders. Twelve municipalities, principally in
Alberta and Saskatchewan, had a funded debt of $4,513,283,
on which arrears amounted to $263,881, or six per cent.
Seven in default at present had a funded debt of $3,485,300,
of which $377,697, or 10.8 per cent., was overdue. The situa-
tion in Saskatchewan was described as the cause of anxiety
to holders of all classes of securities issued .by the province
and its municipal institutions. By appointing a Local Gov-
ernment Board, the Saskatchewan government admitted
responsibility in respect of credit of municipal institutions,
some of which at the time of the establishment of the board
in 1912, were experiencing trouble. In Alberta, Manitoba and
British Columbia, active steps had been taken to obviate loss
to debenture holders in future.
E. M. Saunders, Winnipeg, said financial statements
should be checked by expert auditors and when the state-
ments indicated that trouble was pending, the government
should send out trained and experienced accountants to
investigate the situation. The municipal act should provide
better protection for investors when it became apparent that
a municipality was hopelessly involved.
Speaking of the western land titles system in eff"ect prior
to the establishment of the Torrens system, D. J. Thom said
it had three cardinal defects: uncertainty, expense and delay.
The defects had been largely obviated by the Torrens sys-
tem, the advantages of which so outweighed any disadvan-
tage, as to pla<?e its real value beyond any possibility of con-
tradiction.
May 13, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
of Canada
Address: Corner Church and Court Streets, Toronto, Ontario, Canada.
Telephone: Main 7404, Branch Exchange connecting all department*.
Cable Address: "Montimes, Toronto."
Winnipee Office: 1206 McArthar Building. Telephone Main 340*.
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PRINCIPAL CONTENTS
Editorial : p.\ge
A Discreet Budget Speech 9
The Canadian Pacific Financing 9
Forest Fires Sta*-ting Again 10
May-Day Madness 10
Special Articles:
Business Profits Tax Not to Be Renewed .5
Service at Cost in Vancouver 7
Prince Edward Island Legislative Session 14
Manitoba's Surplus is $33,693,329 14
Foreign Trade Machinery is Delicate 18
American and Canadian Trust Companies 20
Administration of Estate 2-6
Revenue Estimates Higher in Nova Scotia 36
Riordon Company's Position Outlined 44
Monthly Dep.^rtments:
April Bond Sales 22
April Fire Losses 24
Montreal and Quebec Savings Institutions 24
Weekly Depart.ments:
News of Industrial Development 28
New Incorpoi-ations 30
News of Municipal Finance . .,. 32
Government and Municipal Bond Market 34
Corporation Securities Market 38
The Stock Markets 401
Corporation Finance 42
A DISCREET BllKiET Sl'EEC H
THE financi' niinistei' was not deluded by visions of large
revenues from a turnover tax, advocated by several
boards of trade and other business organizations in this
country. His new taxation on business is confined to addi-
tions to the sales tax, a proven source of revenue. On the
other hand the expiration of the business profits tax will
be a boon to the country as a whole, bringing more efficient
numagement and attracting capital to where it will be most
effective. The profits of successful enterprise will not by any
means escape in future; they will pay through the income tax
on corporations and on individuals.
The budget as a whole is a very sane one, bringing no
radical changes at a time when industry cannot safely be
tampered with. There will of course be much criticism of
the government's failure to revise the tariff. But the best
time to make a downward revision is when business is brisk,
as it was up to a year ago, and certainly no increases are
wanted in this country. Nevertheless some reductions which
would have made the lot of the farmer, the lumberman and
the fisherman easier would have been in order. The unem-
ployment complained of in the cities at the present time
is its own condemnation of the excessive and unnatural
growth of Canadian urban centres. The Dominion govern-
ment is evidently lending its support to the provinces' efforts
to stamp out the liquor business, for customs and excise
duties on distilled liquor are made extremely high. Other
changes to be introduced as legislation are not of great
importance. All taxes take effect from May 10, the date
of the speech, as the legislation is to be made retroactive
to that date.
The weak point in the budget is that revenue is not
increased to any great degree. With national expenditure
fixed, while customs and some other sources of revenue are
falling off. it is difficult to see how any substantial reductions
in the national debt can be made. The government has
capital expenditures falling due neaHy every year. Next
August a loan matures in New York, and will probably be
met by refunding. Victory bonds fall due in 1922, 1923 and
1924, and war loan bonds in 1925. In addition there are war
savings stamps, war savings certificates and debenture stock.
If part of these debts can be met as they mature the na-
tional debt will be quickly brought down. If they are not
met, they must be refunded, to be repaid at a time when
dollars will likely mean a great deal more than they do
now.
The income tax escaped revision this year, probably be-
cause it is now about as high as the United States income
tax. Nothing has been done in fact to levy more taxes on
the wealthy, and on the other hand the burden of the general
public has not been increased, apart from the proportion of
the new sales taxes that may be shifted to them.
THE CANADIAN PACIFIC FINANCING
AT the annual meeting of the Canadian Pacific Railway,
held in Montreal last week, E. W. Beatty said: "Your
directors have recently accepted a proposal for the acquisi-
tion by London, Eng., interests, of a substantial amount of
4 per cent, consolidated debenture stock at a price which
was very favorable. This is the first application for the
acquisition of debenture stock from England since the out-
break of hostilities in 1914, and is of the utmost significance,
as indicating the resumption of interest in your principal
capital security in Great Britain. It may conceivably be the
first step towards the re-establishment of a market in Eng-
land for the I'anking securities of the company, which can-
not but have an important influence on its future financing."
This is not the first instance of a revival of British in-
terest in Canadian investments, but it is one of the first
actual transactions to take place. Just at the present time
British investors are putting more capital into the Canada
Land and Irrigation Co., of Medicine Hat. Sales of Canadian
securities in Great Britain during the past few years have
THE JI O N E T A R Y TIMES
been as follows: 1913, $277,470,780; 1914, $185,990,659;
1915, $41,175,000; 1916, $5,000,000; 1917, $5,000,000; 1918,
$14,600,000; 1919, $5,105,133; 1920, nil. The figures since
1915 ai-e insignificant, and are of course offset many times
over by repurchases of Canadian securities held there.
Our investment relations with the old country cannot,
however, be reversed as suddenly as they were in 1914 and
1915. It will be some years before the flow of capital in
this direction reaches its pre-war volume. New York is
still our chief market, and during the past few days there
have been reports that the Canadian Pacific was marketing
$50,000,000 of 15-year O'/z per cent, debenture bonds there.
This is, however, denied by the Guaranty Trust Co., of New
York and the Union Trust Co., of Pittsburgh, which were
mentioned as being head of the purchasing syndicate. While
this deal may be off it is evident that where large amounts
are required it is the New York market to which resort must
be had.
FOREST FIRES STARTING AGAIN
SOME weeks of dry weather have again brought fires in
the north. Every year sees a large area of timber des-
troyed, the 1920 loss being especially heavy. Northern On-
tai'io is the only section from which reports of serious fires
have come this year. Spring came quite early in the north,
and the "closed season" for setting out fires for the purpose
of clearing land was set for April 15, after which date set-
tlers were required to make applications for permits to do
so and to be governed by certain rigid regulations. As late
as May 7 an advertisement appeared in northern papers which
read as follows: "Order-in-council has been passed chang-
ing the closed season from April 15 to May 15 in the
Northern Division, after which date permits to burn must be
secured." This appeared over the name of E. J. Zavitz,
Provincial Forester.
Up to the present time the amount of property damage
has not been very heavy, although considerable valuable
forest areas are reported to be ablaze. The point mentioned
in the northern districts is that it seems highly dangerous
to permit setting out fires without restriction up to as late a
date as May 15 during a season which is admittedly dry.
The weather forecasts indicate showers, and if these
materialize in sufficient volume they may check the danger
of heavy loss to the northern forests. Heavy clouds of smoke
from a fire in Gillies' limit, near Gillies' Depot, are rolling
above the town of Cobalt, and ashes are falling in the street.
On May 11 a fire started at Anstice, 16 miles west of
Capreol. The section foreman's house with contents was
completely destroyed. A peculiar incident is that a large
amount of dynamite was stored under the section foreman's
house and the fire swept over without doing it any damage.
Conditions west of Capreol are somewhat better. Several
small fii-es started up in small dry patches, which were
quickly burnt out. The larger fires of the past few days are
still smouldering, and the damage done during the past few
days is extensive.
AS the saner branches of organized labor, represented by
the international unions, have been becoming more and
more conservative since the climax reached in the spring
of 1919, the more radical wing has been drifting to the other
extreme, widening the breach between themselves and the
more responsible majority. The radicals continue to favor
the Soviet system, long after trade unionists of Great Britain
and the United States have disowned it. Andrew Glen,
chairman of a May D&y meeting in Toronto, said: "We are
all agreed that capitalism has been an ignominious failure
and is falling. If we believe Socialism or something else will
take its place, we h&ve a right to say so. We are here and
will not leave until we have said as much as we like upon
the subject." James Simpson expressed the opinion that the
great interests which brought about the war would never
have done so if they had realized the change of thought it
would cause &nd had realized that systems and monarchies
would be overthrown. He charged that capitalism, not con-
tent with holding what it had gained, was now attempting to
drive the workers back to a lower standard of living than
they hf.d held in 1914. He described the work which the
Russian government was doing to raise the masses of Russia.
"Link up with the third Internationale," was the advice of
John Macdonald, who also said it was impossible to believe
that any class which exploited E'nother would release its hold
at a word. He had not much faith in Parliamentary institu-
tions, charging that they were representatives of the capi-
talist class alone.
"There is no solution to the present problem of unem-
ployment but the complete overthrow of capital," de-
clared John Macdonald, president of the Metal Trades Coun-
cil of Toronto, at a meeting in Hamilton on the same day.
If violence broke out in Canada next winter — and he feared
it would — Labor would not be to blame, E'S it did not want
violence. The onus would rest on the privileged and capital-
istic class that did not want to relinquish its fatted ease.
Failure of the movement to grow as rapidly in Canada as
in some Europe&n countries was assigned by James Simpson
to the press, which, he said, was unsympathetic and cold.
Moreover, all the machinery of capital was set in motion
against labor, and many who had a fair sympathy with labor
were poisoned and prejudiced against it. Cycles of unem-
ployment were coming around- more frequently. In the first
three months this year R. G. Dun and Co. reported that there
were 4,600 failures, involving a loss in bankruptcy of $75,000,-
000, the worst series of failures in the history of the United
States. All this, contended Mr. Simpson, pointed to the com-
ing collapse of capitalism. He scored those employers who
sought to cut wages and reduce the standard of living to
lower than what it was in 1914.
It is evident from these remarks that radical labor, in
becoming more radical, is losing the support of more cautious
unionists.
The valuation of $2,150,000 placed by the Standard Re-
liance on Dovercourt Land investments has been found to be
excessive by $685,000. Land is an excellent speculation, but
is not suitable for funds held on deposit from the public.
Col. L. S. Amery, secretary of the British Admiralty,
expresses the opinion that Canada may some day rival, if
not outstrip, her great neighbor to the south. He must be
referring to the Canadian navy, for he surely c&n not have
such visions about our industry and population.
A DISCRIMINATING INVESTOR
A writer in the London Fhmncicr says that certain
American "financiers" are inundating the country with allur-
ing circulars for the benefit of the British investor. For
some inscrutable reason the average American gold brick
man has always been obsessed by the notion that these Isles
are inhabited mainly by simpletons! But he sometimes meets
his match.
A firm of New York brokers wrote to a party in London
making him a generous ofl'er of more or less genuine r&ilway
and other bonds, inviting him to reply in detail as to his
"wants," and specifically requesting him to mention in the
course of his reply, "what States he wished to avoid." After
analysing the offer, thus did he reply: "Dear Sirs, — Refer-
ring to question No. 5 of your letter, I beg to state that the
States I desire to avoid are the United States of America."
May 13, 1921
THE MONETARY TIJIES
Bank of Hamilton
HEAD OFFICE - HAMILTON
Established 1872
Capital Authorized
Capital Paid Up (January 31sl, 1921)
Reserve Fund (January 31st, 1921)
$5,000,000.00
4.988,390.00
4,694,195.00
Directors
SIR JOHN HENDRIE. K.C.M.G., C.V.O., President
CYRUS A. BIRGE, Vice-President
HOW ARD S. AMBROSE C. C. DALTON
ROBT. HOBSON W. E. PHIN
I PITBLADO, K.C. W. P. RILEY
J. TURNBUIX VV. A. WOOD
ALAN V. YOI'NG
Branches
At Montreal, and throughout the Provinces of
Ontario, Manitoba, Saskatchewan, Alberta and
British Columbia.
Savings Department at all Offices.
Deposits of $1 and upwards receired.
Advances made for Manufacturing- and Farming
purposes.
Collections effected in all parts of Canada promptly
and cheaply.
Correapondence tolicited
J. P. BELL - - General Manager
Our Bond Department
This Bank has a complete Bond De-
partment always at the service of
clients. Constantly in close touch
with financial markets, this service is
invaluable to anyone contemplating
investment of large or small amounts.
We deal in strongly protected securi-
ties, such as Government and Muni-
cipal Bonds.
IMPEKIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
A
Considerate
Service
TT'OR 55 years our aim has been the
development of a service of indi-
viduality— a service not only efficient but
interesled.
We take pride in acquiring lasting busi-
ness relations, and this is reflected in the
courtesy and promptness with which our
customers' requirements are met.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
.
$9,700,000
Reserve
$18,000,000
Total As
sets
$230,000,000-
GENERAL
OFFICE : TORONTO, ONT.
H. A
Richardson, Gene
ral Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON
CHICAGO
NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET, E.C.2
THE MONETARY TIMES
Volume 66
PERSONAL NOTES
Frank E. Fisher, vice-president and general manager
of the Canada Bond Corporation, Toronto, has announced his
resignation. Mr. Fisher's plans for the future are not yet
known.
W. H. Carter, head of the firm of Carter, Halls, Ald-
inger and Company, Winnipeg, has been elected to the
directorate of the Sovereign Life Assurance Company of
Canada.
F. D. Patterson, for nearly seven years manager of
the Calgary branch of the Standard Bank of Canada, has
been promoted to the position of inspector for Alberta and
Saskatchewan. He will be succeeded by J. H. McDowell,
formerly of Tillsonburg, Ontario.
A. T. Lowe, recently appointed inspector of Ontario
branches for the Royal Bank of Canada, will have his head-
quarters in the supervisor's department, Toronto. Mr. Lowe
is a native of
Burlington, O n -
tario, where he
attended the
public and high
schools, after-
wards graduating
from R y e r s o n
School, Hamilton.
In June, 1901, he
entered the ser-
vice of the Trad-
ers Bank as a
junior clerk at
Burlington
branch. In Decem-
ber, 1903, he was
transferred to the
Hamilton branch
of that institu-
tion, where he re-
mained until De-
c ember, 1906,
vrhen the man-
agership of Bur-
lington branch
opened up, and
he was appointe<l
to the position. He continued in charge of that office until
March, 1913, when he was appointed manager of IngersoU
branch. In April, 1919, he was transferred to Toronto as
assistant manager, which position he continued to occupy
until his present appointment.
BANK BRANCH NOTES
The Molsons Bank have opened new offices at 13 Pitt
St. West, Windsor, Ont.
The main branch of the Merchants Bank of Canada.,
formerly at 13 Wellington St. W., Toronto, has been moved
to the new building at 14 King St. W.
C. C. King, manager of the Lethbridge branch of the
Union Bank has been transferred to the branch at Minnedoga,
Man. He is succeeded by George J. Hunter, at present man-
ager of the branch &t Fort William, Ont.
R. G. Wallace, formerly manager of the Sparks St.
branch, Ottawa, of the Bank of Nova Scotia, has been ap-
pointed manager of the H&milton branch. T. G. McMaster,
formerly manager at Hamilton, is being transferred to gen-
eral office, Toronto.
The Canadian Bank of Commerce are erecting a new
building on Commercial St., Glace Bay, N.S.
RIORDON COMPANY'S POSITION OUTLINED
New Financing Must be Done to Prevent Liquidation of the
Enterprise — An Appeal to Shareholders — A Bonus
of Seventy -Five Per Cent, in Preferred
Stock is Oflered With Bonds
WHAT the stock market has been discounting for the past
few weeks concerning the Riordon Co., Ltd., has been
definitely laid before the public in detail. A statement has
been issued by tlie board of directors outlining the situation,
and shareholders are frankly told that unless the proposed
plans are followed through and supported, liquidation is in-
evitable.
The committee which forms the. boai'd now appealing
to the shareholders is comprised of new names, as compared
with the old board, with the exception of Senator W. C.
Edwards. F. P. Jones, who signs the appeal, as chairman of
the board, is general manager of the Canada Cement Co.,
and recently became vice-president of the Riordon Company.
George M. McKee is general manager of the Donnaconna
Pulp and Paper Co., F. M. Southam is vice-president of Wm.
Southam and Sons, Ltd., and Fred E. Bronson is president
of the Bronson Company.
"Referring to the balance sheet as on March 31st, 1921,
of the Riordon Co., Ltd.," the statement remarks, "you will
see that current liabilities amount to $12,714,483, to which
must be added the commitments for plant, etc., not yet de-
livered, and noted in auditors' certificate at $1,500,000, so
that, in reality, your current liabilities amount to $14,214,-
483, your current assets amount to $10,451,680. Therefore,
your current liabilities exceed your current assets by $3,-
762,803. From our investigation of the affairs of your com-
pany, it is apparent that its present position is due to com-
mitments for construction and other expenditures having
been undertaken before adequate financial arrangements
were made — the construction expenditures on the Kipawa
plant having exceeded the original estimate of cost — and to
the world-wide reaction in general trade conditions. Ship-
ments and consequently receipts for the last five months
have fallen far below those anticipated. These combined
factors make it of the utmost urgency that further working
capital be furnished at once.
The Proposed Plan
"Your directors propose that the company shall forth-
with authorize an issue of $5,000,000 ten-year 8 per cent,
mortgage and collateral trust bonds, to be dated June 1,
1921, and to be secured by a specific mortgage and charge
on the fixed properties, plants and timber lands of your
company (subject to the bond issues and mortgages men-
tioned in the enclosed balance sheet), and by a first pledge
and charge by deposit with the trustee for the bondholders
of $6,000,000 of 8 per cent, ten-year refunding mortgage
bonds to be created by the Gatineau Co., Ltd., and issued to
your company in payment and satisfaction of advances here-
tofore made by it to the Gatineau Co., Ltd., The Riordon
ten-year 8 per cent, mortgage and collateral trust bonds will
be further secured by a floating charge (subject as afore-
said) on all the other properties and assets of your com-
pany. They will rank ahead of $47,000,000 par value of
preferred and common shares of your company.
"The bonds of the Gatineau Company to be pledged and
deposited with the trustee as security for the 8 per cent,
mortgage and collateral trust bonds to be issued by your
company, will be secured by specific mortgage and charge
on the properties of the Gatineau Company, consisting of
all the real estate and saw mills of that company at Ot-
tawa, Hull and Rockland, freehold water power rights on
Gatineau, Nation and Lievi-e Rivers and by assignment of
over 8,000 square miles of pine and pulp wood limits pur-
chased by that company through its acquisition of the busi-
ness of W. C. Edwards and Co., Ltd., and the Gilmour and
Hughson Co., and a floating charge on all the other prop-
(Confimted on page 16)
May 13, 1921
THE MONETARY TIMES
13
BiiiiiniHnimiiiiiiniiiuminnmDuummiUDiUDiiiDumiMimrimiiinfflDUiumDinBn^
I The Sterling Bank I
I OF CANADA |
liiiiiniiwiniMnniiiiiiuiiiiiiiimtuiiiiunDiHninjiJiiiigMiiiiuiujiiiiiioMiuuuniuiijnniiiuumuiiiimuiuiiiiniiiijnR
One Department which is proving of special value
to Sterling Bank clients at this time is that dealing
with Foreign Exchange. Here, as elsewhere,
"Personal Service" makes for greater speed and
efficiency
Head Office
KING AND BAY STREETS, TORONTO
DEBENTURES FOR SALE
The Nationsd Bank of Scotland
Limited
Incorporated by Royal Charter and Act of Parliament. Established 1825
Capital Subscribed ;^5,000,00() S25,O0O,OOO
Paid up 1.100,000 .5,.S00,000
Uncalled 3,900,000 19,500,000
Reserve Fund 1. 000, 000 5,000.000
Head Office - EDINBURGH
WILLIAM CARNEGIE, General Manager. GEORGE A. HUNTER, Sec.
LONDON OFFICE-37 NICHOLAS LANE. LOMBARD ST.. E.C. i
T.:c. RIDDELL. DUGALD S.MITH.
Manager Assistant Manager
The agency of Colonial and Foreign Banks is undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London are retired
on terms which will be furnished on application.
50%
Statistics show that 50% of the people
who died in Ontario in 1920 died without
leaving any property.
This does not necessarily mean that none
of these people had ever possessed any
property. Doubtless many of them at one
time had possessed property, but through
lack of oversight or good judgment they
lost all they had, and died penniless.
You can protect yourself against such a
calamity by investing your property
under the plan known as the " Voluntary
Trust."
This plan is fully set forth in our booklet
entitled " Voluntary Trusts and their
Uses."
Write lo-day for a coplj
THE
Toro;stoGeaeralTrusts
Corporations
BAY and MELINDA STS.
TORONTO
TENDERS FOR DEBENTURES
Tenders will be accepted up to 2 p.m., June 11th for
$10,000.00 Vermilion Municipal Hospital District No. 2 de-
bentures. This debenture is to complete over-expenditures
made in construction and equipment of Hospital. Term of
debentures twenty years, repayable in equal annual pay-
ments of principal and interest. Rate of interest seven per
cent., and is a debt on the District at large.
Highest or any Tender not necessarily accepted.
Apply to,
D. TAYLOR, Secy.-Treas,,
Vermilion Munic. Hos. Dist. No. 2.
Vermilion, Alta. 549
CITY OF TORONTO
$5,000,000 Serial Bonds
Sealed tenders, endorsed "Tender for City of Toronto
Bonds," addressed to Thomas L. Church, Esq., K.C., Mayor
and Chairman of the Board of Control, will be received by
the undersigned until 12 o'clock noon (daylight saving time),
Wednesday, 1st June, 1921, for the purchase of $5,000,000
serial bonds, issued on account of the acquisition and re-
habilitation of the Toronto Railway Company.
Full details as to the purposes for which the bonds are
issued, and amounts maturing annually, together with
financial statement of the City, will be furnished on applica-
tion.
The legality of the issue has been approved by Mr. J. B.
Clarke, K.C., Toronto, and his favorable opinion will be en-
graved on each bond.
The bonds are an obligation of the City at large, are
issued in coupon form, with provision for registration of prin-
cipal, and are of the denomination of $1,000,
They are payable both as to principal and interest in
Toronto, and carry interest at the rate of 6% per annum, pay-
able half-yearly. They are dated June 1st, 1921, the first
maturity date of principal being June 1st, 1925.
Engraved bonds will be ready for delivery on or about
June 10th, 1921. Delivery and payntent, with accrued interest,
are to be made at the office of the undersigned.
Tenders will not be received for any part, but must be
for the entire issue.
A certified cheque, payable to the undersigned, for 2"^
of the par value of the bonds tendered, must accompany the
tender.
Tenders specifying for bonds other than those herein
described, or containing conditions varying from the above,
will not be considered.
The right is reserved to reject any or all proposals.
GEO. H. ROSS,
Commissioner of Finance.
Treasury Department,
City Hall, Toronto, Canada, May 12, 1921. 562
((
The
Monetar
y
T
i m e s "
o
ill be sent you for four months
ur TRIAL SUBSCRIPTION plan
on
for
$i.oo
Jl
i8t send a
dollar bill and you
ame
and address
THE MONETARY TIMES
Volume 66
TWO MILLION ELECTRIC COMPANY STARTED
Imorporatod by P.E.I. Legislature — Act Also Passed Regard-
ing Insurance Fees
PRINCE EDWARD ISLAND'S 1921 legislative session
came to a close on April 30. Little in the way of new
legislation was passed. This was the second session presided
over by the Liberal administration and is described by the
Charlottetotvn Guardian as being notable for the fact that it
opened with both sides throwing- bouquets and closed with
them throwing brick-bats. Another new development was
the absence of a meeting of the agricultural committee.
An increase in the rate of interest on provincial loans
from .')% to 6 per cent, was authorized. On motion of
Premier Bell it was resolved that the House express its de-
sire that legislation be enacted at the present session of the
parliament of Canada which will prohibit the importation of
liquor into the province for the purpose of export and word
to this effect was ordered to be submitted through the pro-
per channels to Ottawa.
Insurance Fees
An act respecting insurance sets forth the amount of
the fees to be paid to the provincial secretary-treasurer by
authorized agents and sub-agents of life insurance com-
panies for the issue of certificates of authority. One clause
of the bill giving power to the provincial secretary to cancel
certificates for misconduct or violation of the provisions of
the Dominion Insurance Act, was struck out. An amendment
was inserted to the effect that nothing in the bill should
affect the Provincial Agricultural Fire Insurance Co., the
Prince Edward Island Fire Insurance Co., or the Charlotte-
town Fire Insurance Co.
There were also acts passed to incorporate the Imperial
Biscuit Co., the Cardigan Milling Co., Ltd., the town of
Georgetown, the St. Catharines Rural Telephone Co., and the
Institute of Chartered Accountants of Prince Edward Island.
In discussing the bill regarding education, special re-
•ference was made to a clause providing that school trustees
in determining the amount of poll tax to be levied on their
respective district's shall compile their figures according to the
collector's assessments lists under the taxation act. Hon. Mr.
Arsenault, objected to the clause and its various subsections
as being too cumbersome. He could not see what necessity
there was for examining the government rolls before making
the assessment. Premier Bell maintained that there was
much dissatisfaction among the people with regard to School
Trustees' valuations. The percentage of valuation differs in
many districts. The clause was, however, struck out.
Clause 20 of the bill, authorizing the Board of Educa-
tion to grant moneys by way of aid to school trustees of dis-
tricts (not to exceed $25 annually to any one district) for
the purpose of procuring school equipment, also elicited dis-
cussion. Hon. Mr. Arsenault did not believe that the Board
of Education should be empowered to vote public money as
it saw fit. If the funds were for the special benefit of poor
districts, it should be so stated in the Act. Premier Bell
explained that the money would be supplemented on condi-
tion that the districts would assist — the government to pay
half the expense of additional equipment, the districts to
make up the balance. Mr. Dewar thought it a better plan
to have money paid thi-ough the Public Treasury. After
some fui'ther discussion the clause was passed.
The P.E.L Electric Company
The bill to incorporate the Prince Edward Island Light,
Heat and Power Co., Ltd., provides that the company be
incorporated with Henry A. Sanders, of London, England,
capitalist and electrical engineer; Noah A. Timmins, of
Montreal, capitalist; John A. Bennan, of Chicago, electrical
engineer; William J. O'Leary, of Montreal, electrical engi-
neer; and James J. Hughes, of Charlottetown, merchant, as
directors, with such other persons as may become share-
holders in the corporation. The head office of the company
is to be at Charlottetown or such other place in Canada as
the directors with the approval of the shareholders decide
upon. The capital stock of the company is $2,000,000, divided
into $100 shares. The company reserves to itself all the
usual rights and powers of the ordinary incorporated com-
pany, together with other specifications referring to the pro-
duction and supply of electricity for light, power and heat-
ing purposes. The company may acquire any property, etc.,
and may lease or operate any works or undertakings and
may enter upon and construct the usual facilities for the
conduct of such a business.
The company must submit a detailed statement of their
assets to the Lieutenant-Governor-in-Council annually and the
surplus of the net earnings after providing- for a dividend
of ten per cent, to the shareholders must be used and ex-
pended in the improvement and extension of the company's
lines and plant or in the reduction of its tolls rates and
charges to the subscribers. If the company within a year
of the passing of the Act fails to commence the erection of
its plant, its rights and privileges shall cease and determine.
Not less than $25,000 must be expended in the construction
of its plant within the first year and not less than $100,000
within two years of the passing of the Act. The rates to be
charged to subscribers in the city of Charlottetown and town
of Summerside for lighting and power shall not at any time
exceed the rates existing in the said city and town respec-
tively from the time of the passing of the Act.
MANITOBA'S SURPLUS IS $33,693,329
Capital Revenue and Deferred Assets Exceed Liabilities —
Receipts for Year 1920 Exceeded Estimates
PUBLIC accounts of Manitoba for the year ended Novem-
ber 30, 1920, show assets of $94,108,069 in the combined
balance sheet. This total is made up as follows: — Cash, $2,-
645,429; investments (sinking funds, etc.), $7,810,428; secured
and other accounts, $13,079,584; Dominion of Canada, $13,-
046,973; public works and undertakings (book values), $37,-
821,154; drainage and judicial districts (capital expenditure),
$6,275,318; unsold lands, $13,429,181. The corresponding
liabilities are made up as follows: — Treasury bills and ac-
counts payable, $6,516,389; stocks and bonds, $49,700,870;
sinking funds, replacement reserves and trust funds, $4,-
924,977. This leaves a surplus of $33,693,329, divided as
follows:— Capital, $15,661,025; revenue, $35,566; deferred,
$17,996,737. Guarantees of securities, not included in the
above liabilities, are as follows: — Canadian Northern Rail-
way, $25,663,553; municipal debentures, $3,261,358; Farm
Loans Association, $1,541,449; total, $30,466,362.
Separate balance sheets show capital assets, $71,189,370,
or $15,661,025 more than the capital liabilities; current assets
of $5,072,956, or $35,566 more than current liabilities; and
deferred assets of $18,292,356, leaving a surplus of $17,996,-
737 on deferred account. There are also trust assets of $5,-
155,576, not included in the combined balance sheet.
Revenue and Expenditure
Revenue for the year was $10,482,471, or $547,267 more
than the estimates, the larger items being: — Dominion sub-
sidy, $1,470,991; school lands, $541,603; fines, $139,657; land
titles fees, $405,903; agricultural college, $129,690; lands,
$125,304; interest, $801,189; succession duties, $478,012; cor-
poration taxes, $713,950; Public Amusement Act, $358,772;
widows' pensions, $193,360; automobile licenses, $400,008;
municipal levy, $1,330,141; tax on unoccupied lands, $114,635;
telephone rentals, $2,482,508.
Expenditure was $10,942,808, or $129,666 less than esti-
mates, and by departments was as follows: — Legislation, -
$139,510; executive council, $207,612; treasury, $3,191,100;
provincial secretary, $35,404; education, $1,638,595; agri-
culture and immigration, $955,728; attorney general, $937,-
530; provincial lands, $13,756; railway commissioner, $22,-
672; telephones and telegraphs, $1,880,000; public works, $1,-
840,166; municipal commissioner, $80,730.
May 13, 1921
THE MONETARY TIMES
The Standard Bank
of Canada
Established 1873 152 Branches
Capital (Authorized by Act of Parliament) $5,000,000.00
Capital Paid-up 3.802,001.20
Reserve Fund and Undivided Profits S,178.643.S-I
DIRECTORS
Wellinoton Francis. K.C. Hubert Lanolois.
President Vice-President
F. VV. Cowan, T. B. Greening, H. Langlois. James Hardy. F.C.A..
Thos. H. Wood. Robert Gray.
Head Office. 15 King St. West TORONTO. Ont.
C. H. EASSON. General Manager
J. S. LOUDON, Assistant General Manager
SAVINGS BANK DEPARTMENT AT ALL BRANCHES
HIomeBankofCanada-
COLLECT THROUGH YOUR BANK
Sornetimes you may have collections to
make in a nearby city or town, or elsewhere
in Canada, or in the United Slates. We
have the facilities both at home and abroad
for giving an unusually prompt service in
making collections for our customers.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s 3
A Newspaper Devoted to
Municipal Bonds
'T'HERE is published in New \'ork City a daily
* and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond oflFerings.
Write for free specimen copies
THE BOND BUYER
67 Pearl Street
New York, N.Y.
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
head office. weyburn. saskatchewan
Branches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midare
Griffin, Colgate, Panginaii, Radville, Assiniboia, Benson,
Verwood, Readlyn, Tribune, Expanse, Mossbank, Vantage,
Goodwater, Darmody, Stoughton. Osage, Creelman, Lew-
van, Froude and Ardill.
A GRNKRAL HANKING BUSINESS TRANSACTED
H O POWELL. General Manager
President
TH€ MCRCHANTS BANK
Head Oftlce : Montreal. OF CANADA Established 1 864.
Capital Paid-up $10,029,622 Reiervc Funds and Undivided Profits, $9,475,585
Total Deposits (31st January, 1921)
Total Assets (31st January, 1921)
$152,211,354
$186,528,254
Board of Director
SIR H. MO.N'IAGL' ALL.XN
Sir F. Orr Okk-Lewis, Bart.
Hon. C. C. Ballantvne
Fakquhar Robertson
Geo. L. Cains
Alfred B. Evans
Thomas Ahearn
LT.-COL. J. R. MOODIE
Vice-President
Hon. Lorne C. Webstej
E. W. Kneei.and
Gordon M. McGregor
General Manager ■ ■ - DC. Macarow
Supt. of Branches and Chief Inspector : T. E. Mebrett
General Supervisor - - - W. A. MF.i.DRrM
K. HOWARD WILSON
John Baili.ie
NoKMAN J. Dawes
Ross H. McMaster
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life — •
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 38 Wall Street : W. M. Ramsay and C. J Crookall, Agents
London, England, Office, 53 Cornhill : J. B. Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
16
THE MONETARY TIMES
Volume 66
RIORDOX COMPANY'S POSITION OUTLINED
(Contimied from page 12)
evties and assets of the company, subject to purchase money
mortgages for $5,000,000 which mature 1925 and $478,533
now due and bank lien.<. Thi' trust deed securing the bonds
will provide for the refunding of these mortgages at par.
."It has also been arranged that a voting trust will be
created, by which voting control of the shares of your com-
pany will be placed for a period of five years in the hands
of five voting trustees to be nominated by the bankers in-
terested in the company and its securities. The voting trust
agreement will be completed to the satisfaction of the un-
dei'signed committee before allotment.
"Your directors, therefore, solicit subscriptions from the
shareholders for the entire issue of $5,000,000 ten-year 8
per cent, mortgage and collateral trust bonds of the Riordon
Co., Ltd., at the price of 90 and accrued interest. Unless
by June 1st subscriptions for these bonds are received for
an amount which, together with the amount to be realized
from the sale of the first mortgage bonds which the company
is negotiating, will assure the company at least $5,500,000,
no subscription will be accepted, and the moneys paid on
application will be returned, the directors reserving the right
to return all moneys if in their opinion it is not in the in-
terests of the company to proceed to allotment. For instance,
even with the amount of money required as above stated,
your directors feel that it may be necessary, in order to
ije sure of successful operation in future, to obtain the con-
sent of the creditors to an extension of time in which to
liquidate the company's indebtedness to them.
"On account of the urgency of the situation and as an
inducement to the first preferred shareholders to subscribe
for the bonds above mentioned, all the holders of the 7 per
cent, cumulative convertible (second) preferred shares of
your company have agreed to surrender pro rata to the sub-
scribers to the bonds a sufficient proportion of their hold-
ings to provide a bonus of $750 par value of said 7 per
cent, cumulative convertible (second) preferred shares for
each $1,000 of the bonds so subscribed and paid for,
and the shares necessary for this purpose have been deposited
with the Montreal Trust Co."
TRADE CONDITIONS
R. G. Dun and Co.'s Review for May 14 will say re-
garding trade in the Montreal district: The alterations and
modifications in the tariff' and business taxation, as announced
in the budget speech of Monday last, are not of a pronounced
character, and have no unsettling eff'ect on ti'ade in general.
Collections in the middle and eastern provinces are graded
fair as a rule, and the district failure list for the week is
again a very light one, only six minor insolvencies being re-
ported with liabilities of $45,000. The main item of interest
in the dry goods trade is a cut of from 12% to 15 per cent,
in domestic cottons, as announced by three prominent milling
corporations. A very fair volume of sorting business is still
in evidence, but the buying of fall and winter fabrics is being
deferred by the majority of retailers. In general clothing
and boots and shoes manufacturing operations are of a com-
paratively limited character, and the leather market is as-
suming a quieter phase. Grocery orders are not large as &
rule, but there is a fair steady distribution with few varia-
tions in values. Starch and finer grades of rice are slightly
higher. Sugars are unchanged. Choice new molasses has
been offered at 63 cents laid down, as compared with $1.65
asked last fall. There is a continued pronounced decline in
butter, with cheese now following suit. Hardware men re-
port a gradual growth in the distribution countrywards, but
find city trade dull. The spring clea.n-up spirit is evidently
abroad, and some paint manufacturers report a considerable
aggregate of small to moderate mail orders. The weather
is proving very favorable to spring work on the fa^rm, and
meadows and pasturage give good promise.
EXCHANGE QUOTATIONS
Quotations of exchange on European countries and the
United States as at May 12, 1921, with comparisons, are
given below. The Canadian figures ax-e supplied by the
Imperial Bank of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
Can., May 5. Can., May 12. N.Y., May 12.
London, cheque . . 442.25 446.50 398.75
France 8.86 9.33 8.39
Germany 1.70 1.82 1.66
Belgium 8.85 9.33 8.39
United States ... ll^m p. 12.00 p.
GRAND TRUNK AGREEMENT RATIFIED
At the meeting of the shareholders of the Gra-nd Trunk
Railway Co., on May 12, it was decided to ratify the agree-
ment between the management and the Canadian govern-
ment providing for the transfer of the control of the railway
to the government this month. Only three dissentient votes
were cast. The meeting was crowded, but quiet. The speech
of the chairman of the board of directors of the railway. Sir
Alfred Smithers, dealt with the position of the company ex-
haustively, and was listened to without ejaculations. An
amendment to defer ratification until there was a' better
guarantee concerning future action by the Canadian govern-
ment was vifithdrawn.
WEEKLY BANK CLEARINGS
The following are the bank clearings for the week ended
May 12, 1921, compared with the corresponding week last
year: —
Week ended Week ended
May 12, '21 May 13, '20 Changes
Montreal $124,776,553 $133,579,230 — $ 8,802,677
Toronto 105,579,777 109,897,691 — 4,317,914
Winnipeg 46,185,669 47,497,030 — 1,311,361
Vancouver 15,361,633 17,838,730 — 2,477,097
Ottawa 12,333,941 13,514,206 — 1,180,265
Calgary 6,884,808 8,400,459 — 1.515,651
Hamilton 6,194,310 7,983,587 — 1,789,277
Quebec 7,555,506 5,903,766 + 1,651,740
Edmonton 4,442,858 6,181,789 — 1,738,931
Halifax 3,717,298 5,170,387 — 1,453,089
London 3,606,931
Regina 3,416,497 4,131,544 — 715,047
St. John 3,143,030 3,821,955 — 678,925
Victoria 2,446,114
Saskatoon 1,692,489 2,142,676 — 450,187
Moose Jaw 1,317,309 1,534,869 — 217,560
Brantford 1,408,869 1,405,406 + 3,463
Brandon 664,036 694,808 — 30,772
Fort William 782,007 771,418 + 10,589
Lethbridge 620,097 851,191 — 231,094
Medicine Hat 384,165 485,887 — 101,722
New Westminster.. 625,164 728,201 — 103,037
Peterboro 1,147,111 1,118,272 + 28,839
Sherbrooke 1,894,888 1,009,286 -|- 885,602
Kitchener 1,281,033 1,384,194 — 103,161
Windsor 3,451,863 3,704,011 — 252,148
Prince Albert .... 334,032 471,073 — 137.041
Total $355,194,943 $380,221,666 —$25,026,723
Moncton 1,149,601
Kingston 1,037,521
The annual meeting of the Ontario Division of the Can-
adian Manufacturers' Association was held at Hotel Con-
naught, Hamilton, on April 26. The Maritime Division met
in St. John on April 28. On April 29 the Prairie Division
met in Winnipeg, and on May 4 the British Columbia Division
held its annual meeting at the Vancouver Hotel.
May 13, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 1817)
PAID UP CAPITAL ... - ,— B_ .--..-$ 24,655.506.00
RESERVE FUND ... - ^Vy^Pc^^ ...... 16,750,000.00
RESERVE IJABILITY OF PROPRIETORS ''PsS^^^^l -.---- 24,655,000.00
)JLj^i|^^^^K^ $ 66,061,000.00
AGGREGATE ASSETS 30th SEPT., 1920 ^SSSS^^^ai©' ... . $362,338,975.00
Sir JOHN RUSSELL FRENCH. K.U.E.. General Managei-
357 BRANCHES and AGENCIES in the Australian States, New Zealand, Fiji, Papua (New Guinea), and London. The Bank transacts every description
of Australasian Banking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2.
Agents: BANK OF MONTREAL. ROYAL BANK OF CANADA.
ESTABUSHEX) 1879
Alloway & Champion
Bankers and Brokers
mberi of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
Gborge Edwarus, F.C.A,
H Pehcival Edwards W. Po:
A. Gbopfrsv Eowarus Oswald N. E
T J Macsa.mara T. p. Geoc.ie
K. A. .Mapp W. A. LORiME
Arthur H. Edwards, F.C.A.
Morgan W. Herbert Thompson
Charles E. White
J. L. Atkinson
John M. Edwards
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO ..
CALGARY ..
VANCOUVER
WINNIPEG . .
MONTREAL
CORRESPONDENTS
HALIFAX, N.S. ST. JOHN, N.B.
LONDON, ENG. PARIS, FRANCI'
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEW YORK, U.S.A.
ACCOUNT BOOKS
Loose Leaf Ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
REAL ESTATE
If you are burdened with
the charge of property
belonging to an Estate,
you may free yourself from
the details and drudgery
of its care by placing its
management in the hands
of the Company's Real
Estate Department.
THEBt^NKERS
TRVSTOOMBWir
Head Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
THE MONETARY TIMES
Volume 66
FOREIGN TRADE MACHINERY IS DELICATE
Fundamental Principles Remain the Same, However — Pros-
pect, of Barter with Europe Affects Canada
By a. B. Barker
IN the rather, acrimonious discussion on the tariff the fact
has apparently been lost sight of that trade consists, not
in the exchange of goods for money, but in the exchange of
goods for other goods or services. Money enters into the
transactions, it is true, but only as a means of facilitating
the exchange, by enabling dealers t(J~divide the goods ex-
changed into convenient quantities, and to arrange for future
settlement. Money is a measure of value and a medium of
exchange, and is of no use unless so utilized.
Foreign trade, upon which much of our prosperity de-
pends, is no more or less than the exchange of goods for
other goods by the inhabitants of one country with the
inhabitants of another country. Trade is always between
individuals, as nations do not trade with each other as
nations, any more than cities trade with each other as cities.
This was better understood in the early days of foreign trade.
In those times men traded direct. A ship was loaded with
goods, the cargo being usually owned on shares. Arrived at
the destination, the cargo was sold and the proceeds used
to purchase goods. These were br-ought back to the home
port, sold, and the proceeds divided among the syndicate
according to their shares in the venture. Money was used
in the dealings. The cargo was sold for money — local cur-
rency— in the foreign port, and this money used to purchase
goods, to be sold when the ship arrived at the home port.
The question of the value of foreign funds did not enter into
the matter at all.
Essentials Remain the Same
Foreign ti-ade in reality is no different now in its essen-
tails. The only difference is in the method. As trade grew,
the means of handling it become more highly organized.
Foreign loans were floated and the proceeds reached the
borrowing country in the shape of goods purchased by the
inhabitants. The complications arising from these and
similar transactions gradually focused attention on the purely
financial side of trade, and its real basis has been to a certain
extent obscured.
The present system has been built up and perfected by
generations of use, and in times of peace usually functioned
as intended, though there were at times minor breakdowns.
Just as in a plant equipped with automatic machinery, some
machines occasionally get out of order, but the rest work as
usual, and the output is maintained until the necessary repairs
are completed. If, however, the engine-room of the plant is
damaged, and some of the important machines wrecked, the
whole plant must shut down and output stops. Sometimes
the plant is able to resuiTect some of the old discarded ma-
chines to keep going, and the results obtained from sup-
posedly out-of-date machinery have frequently surprised the
ovmers. One difficulty with the use of automatic machinery,
however, is that those operating it lose much of their skill
as craftsmen, and this is to a large extent the diflSculty
to-day. Trade, domestic and foreign, has been handled for
many years by means of a most complicated system of in-
ternational credit, and this delicate mechanism has been
largely wrecked by the war, with the result that goods are
not being exchanged, and the effects of this stoppage of trade
are just beginning to be felt.
Barter is Result of Currency Depreciation
In some sections it has been recognized that the general
depreciation of money, especially in Europe, has made trade
on former lines impossible, and for this reason negotiations
between Great Britain and Russia have, it is said, been
begun, to revert to what is practically barter through the
medium of a neutral country, Denmark. The Soviet govern-
ment of Russia has lodged in one of the Danish banks a large
sum in gold as a guarantee of good faith, and we may see
a system in operation by which goods of British manufacture
will be exchanged for Russian grain and raw materials. This
will have serious results here, as we are depending, as in
the past, on being able to dispose of our surplus in Great
Britain. Owing to the heavy discount on sterling in Canada
the prices of Canadian wheat and raw materials are, when
translated into sterling, extremely high, if not prohibitive,
and we cannot complain if Great Britain's purchases are
made where she can get better returns. We have always
insisted on this privilege for ourselves, and the people of
Great Britain have the same rights.
It has been reported recently that Australia has prac-
tically forbidden transfer of funds to foreign creditors, and
this will effectually put a stop to any dealings with the in-
habitants of that country under the ordinary methods of
settlement. Australia, however, like any other country, can-
not exist alone, and if trade relations are to be maintained
with other countries, it looks as if it would have to be by
some system of barter.
It is not suggested that there will be an actual return
to the primitive system of barter already described, but the
probability is that an arrangement will be made by which
all future transactions will be adjusted by means of a credit
clearing house in London. Purchases from Australia would
be credited to this fund and any sales charged to it, the
sellers and purchasers in Australia receiving and making
settlement in that country through the ordinary machinery
of credit now in use. Existing obligations would, of course,
have to stand over under the terms of the embargo. The
situation vi^ould be similar to that in which an organization
is operated as a going concern by a receiver. The old credi-
tors' claims stand in abeyance, the proceeds of any sales of
output going to pay for materials purchased by the receiver
to keep the plant in operation.
LAND CORPORATION OF CANADA
The ordinary general meeting of the above company was
held on March 18 in London, Eng. Sir Alexander Roger,
president of the company, s&id: —
"The report has been in your hands for some time, and
I presume you will take it as read. You will see that the
profit on the year's working amounted to £4,486, as against
a profit last year of £2,918. Owing, however, to the North
Coast Land Co. having gone into liquidation, we have been
obliged to write off £4,347 in respect of our holding which
was acquired some years ago. This loss is apparently a
direct result of the deflation in the price of land in Canada
consequent upon the war, although I am bound to say th&t
in my opinion, whether the war had happened or not, the de-
flation in the price of land was long overdue in Canada and
would have happened in any event.
"Since I joined the board in Januf-a-y, 1919, we have been
very active in our management of the company's affairs, and
I think it would be interesting for you to know that during
1919 our total realizations in Canada amounted to £8,116, and
in 1920 our total realizations amounted to £12,379. We have
deliberately pursued this policy of realization, with the result
that we now have in our assets some £31,000 of government
securities and cash.
"During the year Mr. Watkins has again visited Canada,
and there are many matters on which he was of great assist-
ance. He inspected our farm lands and town sites, and se-
cured the repayment of a loan on mortgage in Winnipeg
amounting to £6,955, wnich incidentally brought us a profit
on exchange of £1,400. He also interviewed the debtors who
were in arrear with their payments. He also succeeded in
obtaining the issue of £3,000 5 per cent, debentures in the
North Coast Land Co. in exchange for £2,000 of sterling
notes which would otherwise have lapsed. Finally, in accord-
ance with the policy of the board, he made fresh arrange-
ments for looking after our affairs in Vancouver."
May 13, 1921
THE MONETARY TIMES
Make Your Money Work to Earn
More Money for You
Make it earn 4
You wouldn't i
. per
why refus
nterest (
I Savings Ace
1 your wagt
rease in the
It's as simple as A B C.
The Union Trust Company will pay you interest at 4'
compounded regularly. Come and open your account hei
cannot conveniently call, open your accou
promptly acknowledged and
safely despatched.
It instead of less,
vould you ? Then
If you
I your account by mail. Deposits
thdrawals by mail accurately and
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS iso
Winnipeg TORONTO London, Eng.
The most important document a person of large or small
means is called on to prepare is his
LAST WILL AND TESTAMENT
It means the happiness and welfare of those most dear.
Ask for Booklet : " Make Your Will. "
CAPITAL, ISSUED AND SUBSCRIBED
PAID-UP CAPITAL AND RESERVE....
.§1,171,700.00
. 1,172,00000
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trottee, Etc.
HEAD OFFICE: WINNIPEG. CAN.
Your
Executor
You may have appointed a personal
friend. If so, have you considered these
questions :
Has he thorough business experience?
Does he know the law governing
trustees?
Has he plenty of spare time to devote
to your affairs?
May he die before his duties to your
estate are complete ?.
Have you considered the advantages of
appointing this Company your executor?
[Vrile for our Booklets
explaining our service.
National Trust Company
Limited
Paid-up Capital and Reserve - $4,000,000
Assets under Administration over . $94,000,000
18.22 KING STREET EAST - . TORONTO
Executors & Administrators Trust Company Limited
HEAD OFFICE - MOOSE JAW. SASK.
Acts a* Liquidator, Trustee, Executor, Etc.
Official Administrator (or thr Judicial Diatrict o( Moo.sc Jaw. Authorized
Trustee under the Bankruptcy Act
W. A. MUNNS, Manager
BRITISH CANADIAN TRUST COMPANY
Head Office Lethbridse. Alberta
ADMINISTRATOR EXECUTOR TRUSTEE
OFFICIAL TRUSTEE UNDER BANKRUPTCY ACT
C. P. I>. CO.\VBK.\RE. K.t.-.
W, PARSONS
Cable Address : ''Estates," CalRary. Code: Western Vti ion .
Rankers Vnion Hank of Canada.
J. H. GOODWIN LIMITED
FINANCIAL AGENTS
Molsons Bank Buildins CALGARY. Alta.
kAkm land city fkoperties .moktgagks
.mining phopkrties estates .managed
rental agents vallations l-ire insirance
w
E have 450 good businesses for sale in the central
portion of Alberta. Everything from a General
Store to a small Confectionery
If you want a business in Alberta you want us.
WHYTE & CO., LIMITED
111 Pantage
Building
Edmonton, Alberta
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street \Vest - Toronto
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direct Private Wire)
Grain Elxchange
Calgary, Alta.
The Security Trust Company, Limited
Head Office
Calgary, Alberta
Liquidator, Trustee, Receiver, Stock and Bond Brokers,
Administrator, Executor. General Financial Agents.
\V. .M. C()NNACH1-;R l>res. anJ ManauinK DIi.
"Th
e Monetary Times"
will be sent you for tour months on
our TRIAL SUBSCRIPTION plan lor
$ l.OO
Just sen
d a dollar bill and your name and address.
20
THE MONETARY TIMES
AMERICAN AND CANADIAN TRUST COMPANIES*
Some Important Differences in Business Methods — Oppor-
tunity for Profitahle Investments in Canadian Mortgages
By Edwin Cassidv
Secretary, National Trust Co.. Toronto
COMMERCIAL and financial relations between Canada
and the United States are so close and of such long
standing, and the proximity of the two countries such that
business connections between Canadian and American trust
companies would seem natural. In fact to a certain extent
connections between the trust companies in the two coun-
tries have already been established, and the Canadian trust
companies look forward to their further development in the
future.
Such development, however, must take into account cer-
tain differences in practice between Canadian and American
trust companies — differences which are not always fully
realized on either side of the boundary line. For, although
it is true that there are ways in which Canadian and Ameri-
can trust companies are serving each other and could serve
each other more, yet the fields of operation of trust com-
panies in the two countries do not coincide. The objects of
this article are to show what are the chief differences between
the trust company systems of the two countries and to point
the ways in which more intimate and profitable relations may
be expected between the two systems in the near future.
More Limited Spheres of Activity
Among the differences must be noted first that financial
corporations in Canada limit their spheres of activity more
than do American financial corporations. For example,
in the United States trust companies carry on banking busi-
ness while the National banks are increasingly coming to
discharge trust functions. Thus, to the outside observer the
American bank and the American trust company seem to
perform almost the same functions. In Canada the situa-
tion is different. Canadian banks do a banking business —
Canadian trust companies do not. Canadian trust companies
lend money on mortgage security — Canadian banks do not.
While Canadian trust companies do not engage in com-
mercial banking, do not buy and sell commercial paper, and
do not deal in foreign exchange or sell drafts or acceptances,
nevertheless, a large field remains which they have made
their own. The most important of all their activities is the
carrying out of all kinds of personal and corporate trustee-
ships, and they are rapidly being accepted by the Canadian
public as the most satisfactory agents for this purpose. They
are executors, administrators, trustees and guardians.
Canadian trust companies serve corporations as transfer
agents and registrars of stocks, and as trustees for bond-
holders they perform the great variety of duties which arise
under trust deeds securing bond issues. They act as re-
ceivers, liquidatoi's and assignees. They carry on a safe
deposit business, and they act as agent for property owners
whether the property be real estate or personalty. They
receive funds on savings account, but as trustees, not as
bankers. They make call loans. They receive moneys upon
which they guarantee a fixed return to the investor under
arrangements which approximate those applying to guar-
anteed mortgage certificates in the United States. Finally,
from their capital funds and as trustees and agents they lend
money extensively on mortgage security, and invest largely
in government and municipal bonds.
Fiduciary and Agency Lines
The fact is that Canadian trust companies have had
extensive development along the lines first projected for trust
companies first organized in the United States — as executors,
trustees and as lenders of money on mortgage security; so
that it would probably be within the mark to say that gen-
Volume 66
erally the Canadian companies have had the same history as
American trust companies would have had if they had not
extended their business to banking.
There remain to mention two other respects in which
Canadian trust companies differ from American ones. The
first is of interest to American trust company men because it
contrasts sharply with the American system. It is the system
of branch offices extending to several provinces. This is
more developed with some companies than with others. Some
of the larger trust companies have offices in several of the
provinces, and are thus able to offer a National service, in
their own field. It is worth mention, too, that in Canada
trust companies have been chartered either by the provincial
or the federal governments. Most incorporations, however,
are provincial.
From this summary it will be clear that any closer con-
nections between American and Canadian trust companies
must necessarily be along fiduciary and agency lines, rather
than along banking ones, since the Canadian trust company
is not in a position to render reciprocal service with respect
to the latter, as is the Canadian bank. Canadian tnist com-
panies might be more frequently employed to administer the
Canadian assets of American estates. This tendency has
already become apparent in border cities where interests are
more closely interwoven than elsewhere.
Mortgage Investment Situation
. To Canadian trust companies the outstanding feature
of the financial situation during the past year has been the
scarcity of funds available for mortgage investment on farm,
city and town property. This is of National significance to
Canada's development. Before the war the moneys put out
in this way largely came to the trust companies from in-
vestors in European countries, especially Great Britain, Hol-
land, Belgium and France, who sent out large sums for
Canadian investment. The European requirements of capital
and adverse exchange rates make it impossible now to send
money profitably out of Europe. This source of supply has
therefore been cut off. Early in the year it was pointed
out — and up to the present the statement has proved true
— that for some time Canada would be thrown mainly on
her own resources for the capital needed for her develop-
ment.
This state of affairs suggests to Canadian trust company
officials that in time to come — perhaps soon — investing cor-
porations of the United States may increase the amount of
mortgage money which they send to Canada. Already con-
siderable investments in mortgages have been made in
Canada in years past by United States institutions, prin-
cipally life insurance companies. The security taken in
Eastern Canada has in the main been city property, while
in Western Canada improved farm property has been as
popular a security as city property. If in the near future
United States investors, whether individuals, trust com-
panies or other corporations, become more accustomed to
placing their funds abroad, and include Canadian mortgages
in their survey, Canadian trust companies in serving them
will find greater opportunities of usefulness.
"From l^ridif Companies.
EASTERN TOWNSHIPS BOARDS OF TRADE
The annual meeting of the Eastern Townships Associated
Boards of Tiade was held at Sherbrooke, Que., April 11. H.
C. Dubayer said in his presidential address: "The past year
has been marked by no outstanding features of transcendent
importance. The Townships seem to have settled down to
the long pull necessary to round out properly the reconstruc-
tion period brought about by after-the-war conditions and
nothing startling or inspiring to the imagination has marked
the history of these boards for the time that I have been in
office. However, &s it has been said that a nation without
a histoi-y is the most fortunate of nations, let us venture
the hope that the lack of outstanding events in the Town-
ships during the past year augurs well for the future of these
boards and these townships."
May 13, UI21
THE MONETARY TIMES
21
The Saskatchewan Mortgage and
Trust Corporation Limited
(Truilee under Bankruptcy Act)
offer you the benefit of their experience as
EXECUTORS, ADMINISTRATORS, TRUSTEES,
MANAGEMENT OF ESTATES, ETC.
MONEY TO LOAN ON IMPROVED FARMS
AND MODERN CITY PROPERTY
REGINA
SASK
A BOND FOR $100
*100or more invested in a "Canada Permanent " Bond
for ONE YEAK will earn interest at FIVE PER CENT, per
annum, payable half-yearly. A higher rate is paid on longer
term investments. Interest begins the day the money is re-
ceived, and the Bond will be made to become due on any date
the investor desires.
The Bonds are issued in small sums and for short terms
to enable those of moderate means to obtain a high grade se-
curity yielding a fair return and still have their funds avail-
able within a reasonable time. Small amounts should not be
allowed to remain idle when they can be employed to such
good advantage as by investing them in these Bonds.
The Corporation has been issuing these Bonds for near-
ly half a century. They are a first charge against its assets,
which amount to over .*33.00fl.000
Canada Permanent Mortgage Corporation
14-18 TORONTO STREET - TORONTO
Eslablithtd 18SS
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
-Masonic Temple Building, London, Canada
Interest ai 4 per cent, payable half-yearly on Debentures
T, H, PURDO.M. K.C.. President NATHANIEL .MILLS, Manager
The Hamilton Provident and Loan Corporation
Head Office. King Street. Hamilton. Ont.
Capital Paid-up. $1,200,000. Reacrre Fund and Surplus
Profili. $1,315,587.70. Total Axels, $4,800,104.82.
TRUSTEES AN'i KXfiCUTOKS are authorized by Li.w to invest Trusi
Funds in the DEBENTURES and SAVINGS UhPABTMENT of thi-
Corporation.
GEORGE HOPE. President 1). M CAMERON. General Manage!
^"^ Ontario Loan
& Debenture Co.
LONDON lNCORi'OR.\TEu 1870 Canada
C.AriT.M. .•\Nr) Reserve Find 84,000.000
su
SHORT TKRM (I TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
511
JOHN .McCLAUV I'l
A. .M. S.MAKT. Manager
(~\VER 200 Corporations,
^'^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office, No. 13 Toronto Street
Capital Account. »;««.S,>0.«0 Reserve Fund #7«0.000.00
Total Assets. lfl;t,l6K,."i«O.00
President, WELLINGTON KKA.NCIS, Esq., K.C.
Vice-President. HERBERT LANGLOIS. Esq.
Debentures issued to pay .Sfi'V.. a Legal Investment for Trust Funds.
Deposits received at 4",, interest, withdrawable by checiuc.
Loans made on improved Real Estate on favorable terms.
NVALTER GILLESPIE. Manager
Six per cent. Debentures
Interest payable half yearly at par at any bank in Canada.
Particulars on application.
The Canada Standard Loan Company
520 Mclntyre Block^ Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inqairiet Invited
General Manager Lieut. -Col. G. H. DORRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts «> Esecotor, Adminislralor, Trnstce, Goirilian, Liqoidator
Aiiignee, and io aajr other fidnciarj capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch OKice - Swift Current, Saskatchewan
TOHN R LITTLE. Managing Director
22
THE MONETARY TIMES
Volume
APRIL BOND SALES TOTAL $26,500,877
New Financing This Year to Date, Including Temporary
Financing, Nearly $106,000,000
APRIL was another busy month for bond dealers, at least
that is the indication from the record of sales of The
Monetary Times. The total of new public financing was
$26,500,877, including provincial treasury bills to the sum of
$6,500,000. A summary and comparison of last months'
transactions, shows the following results: —
April, 1921.
Provincial $12,840,000
Municipal 3,202,877
Corporation 10,458,000
Totals $26,500,877
March, 1921. April, 1920.
$10,500,000 $10,300,000
5,671,037 4,962,368
7,425,000 11,725,000
$23,596,037 $26,987,368
So far this year there has been more activity than in
1920. Canada's borrowings for the first four months of 1921
aggregated $105,811,452, as compared with $102,969,692 last
year. It must be remembered that the 1921 figure includes
temporary financing, such as provincial treasury bills, which
will mature before the end of the year, amounting to about
$13,750,000, while the 1920 total does not. But as far as
Canada is concerned, there has been a great deal more
activity in permanent financing, when it is considered that
slightly more than 70 per cent., of the offerings have been
taken up here, while last year investors of the Dominion
participated to the extent of but 20 per cent., the balance
going to the United States.
There was a slight softening in prices last month, as
evidenced by Alberta's loan, which was made on a basis
almost as high as in January. British Columbia also had to
pay more for its money than in March. Ontario and Mani-
toba municipals sold on a higher basis.
PKOVIKCIAL
British Ct
Iim
(tre
bia
Albert,!..
Ontario
.ni.\irii>AL
Oiitiirlii-
Niagara (-'alls
Carleton County .-
Bttllevilie
Sault Ste. Marie (S S.)
Sudbury
Meaford
Burlington.
Ford City..
Essex Bordt-r Ltihties.
Toronto Township.
Brockville..
York Township
Acton
Minto Township.
4,000,000
;!,000.000
2.500,000
2,000.000
1,340.0(X)
12,840.000
New Rriiiisnlrk—
St. John County and City.
Sackville
.M»nlt»l>»—
St. Boniface. ..
Minima R.M. ...
Pipestone R..\1..
Rockwood R.M.
DulTerin R.M ..
.SilsUiilrlirnilli—
School Districts... ,
Regina
Rural Telephones.
CraikS.D
Gravelbourg
Fertile Valley R.M.
Sasmim R.M
810,000
40.000
850.000
273,233
80.000
80,000
70.000
60,000
563,233
British «'olnml>l.-i-
Kamioops
CORPORATION
National Farming Machinery. Ltd. (1st Mort.t
Brompton Pulp & Paper Co. (gen. Mtge. Conv.)
Laurentide Power Co
Laurentian Power Co.. Ltd
t Canada Land & Irrigation Co. (£300,000)
166.132
154,010
90.900
33,.S00
6.000
5,050
5,250
4.000.000
2.500.000
1,500.000
1.000,000
1.458,000
10,458.000
30 instalments
5 & 20 instal.
20 years
20 instalments
instalments
15 instalments
27'instalments
30 years
10 instalments
20 instalments
20 instalments
30 instalments
10 instalments
10 years
Serials
Various
30 instalments
30 years
30 instalments
30 instalments
Various
Various
Various
I instalments
30 years
10 years
20 years
5 years
20 years
15 years
20 years
Cost to
Bor-
rower
6.00
5.50
6.37
*6.05
6.54
6.30
6.29
*6.25
7.14
*6.50
6.42
6.24
6.47
6.27
6.36
6.12
6.39
Var.
6.65
Var.
7.50
7.00
8.10
7.50
7.25
A. E. Ames & Company and Syndicate
■itish-American Bond Corporation and Syndicate
Canadian Bank
Dominion Securities Corporation
Wood. Gundy & Company and Syndicate
Wood. Gundy & Company
R. C. Matthews & Company
Harris. Forbes & Company
Versailles. Vidricaire S Boulais
Dyment, Anderson & Co. and Turner. Spragge & Co.
Locally
United Financial Corporation
George Carruthers & Son
A. E. Ames & Company
Brent. Noxon & Company
Harris. Forbes & Company
Local Purchaser
R. C. Matthews & Company
Harris. Forbes & Company
Dyment. Anderson & Company
United Financial Corporation. Dominion Securitii
Corporation and Rene-T. Lecierc
Versailles. Vidricaire & Boulais
Local Dealers
Nova Scotia Trust Company
unicipal Debenture Corporati(
Edward Brown & Company
Harris, Read & Company
R. C. Matthews & Company
Wood, Gundy & Company
A. E. Ames & Company
Various
Regina Sinking Fund
C. N. .McManus
Harris, Head & Company
Harris. Head & Company
Locally
Locally
La Banque Nationale
Greenshield \- Company
^ Life Assurance Company
99.53
100.01
100.00
96.42
76.89
84.59
97.937
96.719
95.78
'94!76"
67.43
97.579
93.97
97.06
99.079
97.42
99.13
96,07
89.50
90.25
94 96
94,21
Price
100.00
$
3,000,000
* Offering Yield, t Sold in London, England, at par. Redeemable 1929 and 1933 at 100 per cent, premiun
Mav 13. 1921
THE MONETARY TIMES
iilllllllllllMIMIIIIIIMIIIMIIIIIIIIIIUIIIMIIIIIIIIIIIIIIIIIUrilinilllllMIIIIIIIMMMIIIIIIMIMIIMIIIinillllllllllllMlllllltllllllllllllllll!llllllilllllllllllll>:
I CHARTERED ACCOUNTANTS I
?iiiiMiiniiiMiiiiiiiiiniiMiiiiiiiiiiiiuiiiiiniHMiiiiiiiiiMMMiiiininiiiiiiinnMiiMiiiMniiiiiuiiiiiiiiiiiiHiiiniiiiiiiiiiMiiiiininniiMMiiiiiiiiiiiii~
HENRY BARBER & CO.
Established 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railwajr Building,
6 Kins Street West TORONTO
ALEXANDER G.
CALDER
CHARTERED ACCOUNTANT |
Specialist on Taxation
Problems
Bank of Toronto Chambers
LONDON - ONTARIO
Established ISSJ
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Chambers
Winnipeg, Man.
W. A. Henderson. C.A. J. J. Coidner. C.A.
Cnhle Address "Ormlie-' Western Union Code
KENNETH BOWMAN
Chartered Accountant
(Successor to Baldwin, rjow ,■;■ Bowman)
EDMONTON
ALBERTA
CHARLES D. CORBOULD
Chartered Accountant and Auditor
ONTARIO AND MANITOBA
649 Someraet Block. Winnipeg
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
C A PC A
BAWDEN, KIDD & CO.
Chartered Accountants
CENTRAL BUILDING, VICTORIA, B.C.
Braoch at Naoaimo, B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS
24 King Street West - TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAND
Arthur E.
Phillips
& Co.
Chartere
d Accountants |
508-509 Electr
WINNIPEG
Cable Adc
ic Railway
ress— "Cnra
Chambers
Man.
•el."
SERVICE
Thome, Mulholland, Howson & McPherson
JCl"?"^ 3420
CHARTERED ACCOUNTANTS
PBODLcr
Hamilton Bids.
TORONTO
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Terephone Main 7014
LUMSDEN BUILDING TORONTO, CANADA
Hubert Reade & Company
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
CLARKSON, GORDON & DILWORTH
Chartered Accounti
Receivers, Lid
Merchants Bank BIdg., 15 VV'el
nts. Trustees
idators
linston Street West
Established 1864
F. C.S. TURNER &C0.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
THE .MONETARY TIMES
Volume 66
VI'UIL FIRE LOSSES WERE HIGHER
Total Exceeded March Figure by Some $400,000, But Was
Lower Than in April a Year Ago
A PRIL fire losses were again high, being some $400,000 in
■i*- excess of the previous month. The total was considerably
below the loss of April a year ago, however. A summary
of last month's fires is contained in the following figures: —
Fires exceeding $10,000 $1,921,000
Small fires reported 89,700
Estimate of unreported fires .500,000
Total
$2,510,700
1 he Moiiftiii-y Tiiiu-s' record for the past four years shows
the following monthly losses: —
Month.
1918.
1919.
1920. 1921.
January
. $ 2,688,556
$ 3,915,290 $
2,637,850 $ 2,
237,900
February . .
2,243,762
1,091,834
1,895,575 2,
735,500
March
1,682,286
2,154,095
1,793,200 2,
112,200
April
3,240,187
1,080,070
3,229,500 2,
510,700
May
. 3,570,014
1,785,130
2,001,819 . .
June
3,080,982
3,337,530
1,424,319
July
3,369,684
1,118,377
1,426,850
August . . .
3,110,445
1,374,495
1,857,800
September .
917,286
1,940,272
2,480,485
October . . .
5,119,145
1,023,288
2,467,901
November .
. 1,059,580
2,.339,870
2,769,800
December .
1,733,917
2,047,496
3,721,475
Tota.ls . . $31,815,844 $23,207,647 $27,706,574 $ 9,596,300
List of Large Fires
The following are the April fires causing damage of
.$10,000 and over:—
Cudworth, Sask., April 1, bams, $16,000.
Altona, Man., April 2, business block, $35,000.
Montreal, Que., April 2, building, $35,000.
Walkerville, Ont., April 3, paintshop, $20,000.
Vercheres, Que., April 5, boathouse, $20,000.
Cloverdale, B.C., April 7, sawmill, $20,000.
Vonda, Sask., April 8, school, $12,000.
Quebec, Que., April 10, building, $100,000.
Taymouth, N.B., April 10, residence, $15,000.
Vancouver. B.C., April 13, fE.ctory, $40,000.
Vancouver, B.C., April 13, plant, $40,000.
Winnipeg, Man., April 13, stores, $50,000.
Sidney, B.C., April 14, factory, $50,000.
Hatton, Sask., April 16, business section, $50,000.
Ochre River, M&n., April 16, elevator, $18,000.
Montreal, Que., April 19, church, $800,000.
Carleton Place, Ont., April 19, feed mill, $15,000.
St. Stephens, N.B., April 20, roundhouse, $200,000.
Swift Current, Sask., April 21, hotel, $15,000.
Sarnia, Ont., April 26, store, $10,000.
Vars, Ont., April 26, business section, $20,000.
Shawville, Que., April 27, business section, $65,000.
Regina, Sask., April 29, building, $250,000.
Outlook, Sask., April 30, coal docks, $25,000.
Among the causes reported were: Sparks, 2; defective
chimneys, 2; incendiarism, 2; overheated furnace, 1; cook
stove, 1; spontaneous combustion, 1; electric iron, 1; and
cigarette stub, 1.
The following structures were destroyed or damaged:
Residences, 39; stores, 15; barns, 12; buildings, 11; plants,
7; business sections, 3; g&rages, 3; mills, 3; hotels, 3; schools,
2; churches, 2; boathouse, 1; paintshop, 1; town hall, 1;
.station, 1; coal dock, 1.
The following is a list of deaths from fires during
April: —
Halifax, N.S., April 5, clothing caught fire 1
Melbourne, Que., April 6, burnt in building 2
Digby, N.S., April 8, clothing caught fire 1
St. Laurent, Que., April 12, fell into bonfire 1
Cornwall, Ont., April 18, clothing ca.ught fire 1
Winnipeg, Man., April 20, burnt in a hay stack 1
Comparison of Death.s
The record of deaths from fire has been as follows: —
Month. 1914.1915.1916.1917.1918.1919.1920. 1921.
January 26 3 10 21 28 13 22 17
February 18 11 23 19 87 26 30 18
March 27 23 23 20 34 9 35 11
April 22 14 6 15 7 27 8 7
May 8 5 14 12 10 15 13
June 12 2 6 9 9 28 15
July 8 13 268 19 6 11 15
August 3 14 30 12 7 24 14
September 9 27 6 21 13 23 13
October 9 7 39 23 11 16 13
November 14 12 12 21 3 14 31
December 19 11 94 15 26 19 18
Totals
175 142 .531 207 241 225 227
5?,;
TO TAKE OVER TELEPHONE BUSINESS.
According to present plans, the Ingcrsoll, Ont., Tele-
phone Co. hopes circumstances will permit its taking over
the interests of the Bell Company about July 1. Officials of
the IngersoU Company have just returned from Montreal,
where they were in consultation with representatives of the
Bell Company regarding the consummation of the deal. In
the meantime thei-e is much to be done by the engineers and
by way of valuation.
MONTREAL AND QUEBEC SAVINGS INSTITUTIONS
Few changes of importance are shown in the March
statements of the Montreal City and District Savings Bank
and the Cassie d'Econoniie de Quebec. Deposits continue to
reflect healthy conditions, while loans have changed but little.
The liquid position of both institutions is better, with security
holdings substantially advanced. In the case of the former
bank, cash assets show a considerable reduction, but the
latter shows an increase in this regard. The following are
the March details, with comparisons: —
Montreal City and District Savings Bank
Mar., 1921. Feb., 1921. Mar., 1920.
Dom. gov. dem. dep. . .$ 93,364 $ 93,364 $ 624,835
Other dem. deposits 47,489,056 46,933,620 42,693,315
Total liabilities 48,082,834 47,495,540 43,660,338
Gov. and other sec 13,844,585 13,612,926 11,194,854
Cash 7,883,312 8,772,889 7,052,432
Can. municipal sec 16,558,115 15,685,561 15,800,05S
Loans on bank stocks. . 856,266 807,978 788,812
Loans on other sec 8,523,152 8,619,423 8,856,906
Total assets 50,891,224 50,575,216 46,499,586
Cassie d'Economie de Quebec
Mar., 1921. Feb., 1921. Mar., 1920.
Dom. gov. dem. dep $ 188,62S
Other dem. deposits $11,087,718 $10,925,048 $10,424,737
Total liabilities 12,561,551 12,261,573 11,649,746
Gov. and other see 2,173,521 1,973,521 1,679,656
Cash 1,692,245 1,669,367 1,554,108
Can. municipal sec 3,977,807 4,062,807 4,121,577
Loans on bank stocks.. 303,749 303,786 274,411
Loans on other sec 3,331,404 3.302,519 3,200,555
Total assets 14,458,061 14,158,083 13,459,947
Mav 13, 1921 THEMONETARY TIMES 25
And Now —
Toronto Printers May Strike
THE present agreement between printers in book and job offices and employers
in Toronto expires May 31. The minimum wage paid is S35.20 per week
(increased voluntarily a year ago by the employers from $32.00, although the
agreement had a year then to run). This wage covers a 48-hour week.
The International L nion is demanding a week of 44 hours as the basis for ail wage
scales, and the Toronto unions are demanding a wage of $44.00 per week of 44 hours,
$8.80 more per week for 4 hours less work.
1 his means an increase from 73 cents per hour to $1.00 per hour, or over 36%.
Publishers and other emplo> ing printers feel that under present conditions of business
and the admitted decreasing cost of living, the increased wages and shorter hours
demanded by the International Union are unreasonable.
This is acknowledged by many of the thoughtful, loyal printers employed in the
Toronto offices, who believe that the International L'nion has blundered in its demand
that local unions shall not sign new agreements except on the basis of the 44-hour week.
The position, however, may be that these local men may not be able to make the
International officers in Indianapolis see, that to force a strike now on these unrea-
sonable demands would be an act of folh — and a strike may be called on June 1st.
The facts of the case are presented here, for the information of the sections of the
public — subscriber and advertiser— reached by this publication.
The attitude of the employing printers is shown by their voluntary action in giving a
10 per cent, increase last year while the agreement calling for the minimum wage of
$32.00 a week had still a year to run.
They feel strongly now , how ever, that this is not a time when ar increase of 36 per cent, in
the labor cost of production should be permitted.
If publishers are forced to pay $44.00 a week instead of $.35.20 and get only 44 hours of
work instead of 48, it is inevitable that subscription and advertising rates must advance.
No business can stand an increase in its wage bill of 36 percent, and absorb that in-
crease. The extra cost will have to be added to the sale price of the product.
Publishers sincerely hope that the great body of sane opinion among the local printers
may prevail and that the Indianapolis officials will be induced to withdraw their un-
reasonable demands so that Toronto printers may continue to find well-paid, congenial
employment.
If this sane, thoughtful opinion does not prevail, a strike seems inevitable, with its
equally inevitable result of loss to the printers and publishers, and inconvenience and
loss to the public.
An expression of tlie opinion of readers of this paper on the Union's proposals, in-
volving; an increase of 36°, in the labor cost of printed matter is asked. Will you not
write a letter to the editor (not for publication) telling him your vievr of the situation.
This stalement is published by and has received the cadorsalion of the Toronto publishers who are members of the
Canadian National Newspapers and Periodicals Association
including THE MONETARY TIMES OF CANADA.
THE MONETARY TIMES
Volume 06
ADMINISTRATION OF ESTATE
Court Holds There was No Undue Delay in Placing Assets
in Safety — Firm of Bankers Failed
IN an action against the administrator of an estate to re-
cover a sum of money lost to the estate it was held that,
if the administrator of an estate and trustee of trust pro-
perty acts honestly and in good faith, and having regard to
all circumstances, reasonably, he ought to be excused for
breach of trust, if there is a breach, and should be entitled
to be relieved from all personal liability.
The facts of the case were that the father of the plain-
tiff, having died intestate during the minority of the plain-
tiff, left an estate of $12,000 on deposit with a firm of private
bankers. Cook, the defendant, at the instance of the plain-
tiff's mother and the family solicitor, was induced to apply
for administration of the estate, and such was granted him
on the 31st December, 1913. Thereafter, these moneys, less
a compartively small sum withdrawn for the payment of
debts, etc., remained on deposit at interest with Ray Street
and Co. in the name of the defendant as administrator until
the bankers suspended payment on the 30th August, 1914,
the war being assigned as the cause of the bank's failure.
Computing interest to that date, the bankers, when they
failed, were indebted to the estate in the sum of $10,592. A
dividend of 25 to 30 per cent, has bean paid on the amount
and the balance cannot be recovered. The plaintiff has come
of age, and claims to recover the amount of the loss from
the defendant upon the ground of negligence and breach of
trust.
Judgment of the Court
Justice Lennox says in his written judgment: —
"The first duty of trustees is to place the trust property
in a state of security. ... If tlie trust fund be a chose
in action as a debt, which can be reduced into possession, it
is the trustee's duty to be active in getting it in; and any
unnecessary delay will be at his own personal risk.
"There is no hard-and-fast rule as to what constitutes
undue or unreasonable delay; but the courts always attach
importance to the question whether the alleged breach of
trust by failure to convert or to realize the assets, and con-
sequent loss, occurred within or beyond a year of the tes-
tator's death or the grant of administration. There are many
cases upon this point.
''Matthew Trost having died intestate, his estate could
not be regarded as a fund for permanent investment. It was
in the hands of the defendant for the payment of debts,
expenses of adminstration, and distribution. He apears to
have applied himself promptly to the execution of his trust.
He was appointed administrator, as I have said, on the 31st
December, 1913, advertised for creditors within fifteen days,
and applied to have his accounts passed, with a view to dis-
tribution of the assets, on the 12th May, 1914. At or about
the same time, Catherine Trost, acting through Mr. Mc-
Govern, applied to be appointed guardian of the plaintiff, then
an infant. Long vacation, absence of the Surrogate Court
■judge, doubts he entertained, and correspondence with the
Official Guardian — all of which are incorporated in admis-
sions of fact filed- — prevented the appointment of Mrs. Trost
as guardian (and prevented the withdrawal and distribution
of the money in question) until the 30th October, 1914. In
the meantime, as already stated, Ray Street and Co. sus-
pended payment on the 29th August, and just after Mr. Ray
must have become aware, as shown by the correspondence
filed, that the Matthew Trost money might be demanded
almost any day.
"It is not suggested, and could not be fairly argued, that
the defendant did not act honestly and with the utmost good
faith, and, having regard to all the circumstances, I am of
opinion that he also acted reasonably, and that, in the terms
of the statute, he "ought fairly to be excused for the breach
of trust" (if what is complained of was a breach of trust)
and for omitting to obtain the directions of the Court, and
tliat he is under the statute entitled to be wholly relieved
from personal liability accordingly."
NEW OCEAN STEAMSHIPS SERVICE
The formation of a new steamship company, to be known
as the Intercontinental Transports, Limited, which will
operate a line of twelve ships between Montreal and Liver-
pool, and Montreal, Havre and London, was announced in
Montreal on April 22 by A. W. Doherty, general traffic man-
ager of the Canada Steamship Lines, Limited. The vessels
for the new line will be supplied jointly by the Canada Steam-
ship Lines and a Norwegian firm, and all will be rechristened
and given the name of Ontario counties. The new services
will provide a sailing out of Montreal every week, destina-
tions alternating between Havre-London and Liverpool, and
the first sailing will be May 14 by the steamship "Porsanger."
GRAND RIVER DISTRICT ASSOCIATION
The Grand River Region Improvement Association was
organized on May 1 in Kitchener, Ont., taking the place of
the Grand River Improvement Association, formed some
years ago for the conservation of the waters of the Grand
River.
Representatives were present from Brantford, ' Gait,
Preston, Kitchener and Waterloo, and the delegates were
addressed by Thomas Adams, city planning expert of the
Commission of Conservation. He offered to come to this dis-
trict for a week to make a survey of the district with a view
to making it an industrial centre, with the very best facilities
to improve the relations with the agricultural sections of the
region lying between Waterloo and Brantford. Mr. Adams
asked for the co-operation of the engineering staffs of the
various towns and cities interested, and the delegates present
agreed to enlist the support of the municipal councils repre-
sented in the new association.
REGISTRATION OF TRADE MARK
In a petition praying for an order directing that the
trade mark "Christie" may be registered as a specific trade
mai'k to be used in connection with the manufacture and sale
of biscuits, etc., the Exchequer Court of Canada decided that,
as the word had been used as a trade mark to denote and
advertise the products which had been manufactured for a
great many years, it may be registered as a trade mark to
be used in connection with those products.
In the petition it is alleged that petitioners are the pro-
prietors of a trade mark consisting of the word "Christie,"
which has been used by them for many years in connection
with the manufacture and sale of biscuits, cake, puddings and
infants' food, manufactured and sold by them, and which
distinguishes sa'd goods from similar goods manufactured
and sold by oth:rs, which said trade mark is known through-
out Canada as denoting and distinguishing the goods of your
petitioners; that the pstitioners made application to the Min-
ister of Agriculture of the Dominion of Canada for the regis-
tration of the said trade mark as above described as a specific
trade mark to be used in connection with the manufacture
and sale of biscuits, cake, puddings and infants' food, in
accordance with the provisions of the Trade Mark and Design
Act; that the Minister of .Agriculture, by letter dater De-
cember 15, 1914, refused to register the said trade mark on
the grounds that it is a surname, and could be registered only
in accordance with an order from the Exchequer Court of
Canada; that, as a matter of fact, the word "Christie" has,
through long-continued use and extensive sale acquired a
secondary and trade mark meaning, denoting and distin-
guishing goods manufactured and sold by the petitioners.
The Court said: "I find myself bound by the judgment
of the Supreme Court in the petition of the Horlick Malted
I\Iilk Co. to have their trade mark 'Horlick's' registered.
The Supreme Court have thought that they were entitled to
register such a trade mark, and directed by their formal
judgment that the word 'Horlick's' be registered. The case
of 'Christie' is very much stronger than that of 'Horlick,' and
I am bound by the judgment of the Supreme Court."
Mav 13, 1921
THE MONETARY TIMES
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i CHARTERED ACCOUNTANTS I
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Millar, Macdonald & Co.
Chartered Accountants
Home Bank Building, 428 Main Street
WINNIPEG
Norman B. McLeod
Chartered Accountant
AUDITS INVESTIGATIONS
COST ACCOUNTING
803 Kent Bldg. - TORONTO
Phone MAIN 3914
in. C.A. J. D. Wallace. C.A.
. C.A. H. A. Shiach, C.A.
Rutherford Williamson
& CO.
Chartered Accountants. Trustees
TORONTO MONTREAL
Represented at Halifax. St. John. Winnipeg.
Vancouver.
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I REPRESENTATIVE LEGAL FIRMS \
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CALGARY
Charles F. Adams, K.C.
Bank of Montreal Bldg.
CALGARY - - ALTA.
LETHBRIDGE, Alta.
Conybeare,
Church
&
Davidson
Barrialera. Solic
itora. Etc. |
Solicitors for B
and Loan Co. c
Tr
jnk of .Mo
f Canada,
ust Co., &c
ntrea
Brit
. &c.
1. The Trust
sh Canadian
C F. P. Conybc:
R. R
re. K.C. H
Oavidson,
. W. Church. .M.A. 1
LL.B. 1
Lethbridge
-
Alta. 1
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT. SASK.
W. F
W. L
nt.K.C. Alex
B. .M
ickay. .MA..
LL U.
H. O. .Mann.
.MA..
LL.U.
LENT, MACKAY
&
MANN
Ba
rister
s. Solicitors.
Nota
ries. Etc.
»IS 0
rain K.>
change Bldj; .
CalK.
ry. Alberta
Cable
Addre
as.'Lenjo." W
'sleri
Unton Code
Solic
tors fo
The Standard
Rank of Canada. I
The Northci
n Trusts Co..
Assoc
lated .Mort-
SaKc
Invest!
rs. \c.
1
J. A. WmoHT. LL.B. C. A. Wright. B.C.L.
WRIGHT & WRIGHT
Barristers, Solicitors, Notaries, Etc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon A. C. Rutherford. K C. LL.D
F. C. Jam.eson. K.C. Chas. H. Grant
S. H. .McCuais Cecil Rutherford
RUTHERFORD, JAMIESON
& GRANT
Barristers, Solicitors, Etc.
514-18 McLeod Bldg. Edmonton, Alberta
HALIFAX, N.S.
Maclean, Burchell & Ralston
Barristers, Solicitors, etc.
Chronicle Bldg., - Halifax, N.S.
JohnstoDe, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE Alberta
MEDICINE HAT
G. F. H. Long. LL.B. J. W. Sleuiht. B.A
LONG & SLEIGHT
Barristers, etc.
MEDICINE HAT and BROOKS, Alta.
MOOSE JAW
Grayson, Emerson & McTaggart
Barriatera, Etc.
Solicitors— Bank of .Montreal
Canadian Bank of Commerce
Moose Jaw - Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
SASKATOON
C. L. DURIE. HA.
B. M. Wakel
. 1
DURIE & WAKELING |
Barrister!
and Solicitors
Solicitors for the Bank of Hamilton.
Great West Permanent Loan Co.
Monarch Life Assurance Co.
The
The
Canada Building
Saskatoon, Cai
lada
TORONTO
G. W. MORLEY & COMPANY
Barristers. Solicitors. Etc.
802 Lumaden Building. Toronto
Solicitors tor A. G. Sp.ilding & Bros, of Can.,
Ltd.; A. J. Reach Co. of Can.. Ltd.: Dominion
Chautauquas. Ltd.. etc.. etc.
Special attention given to Corporation work
and collections.
Cable Address: "Morlcy." Toronto
VANCOUVER
W. J. Bowser. K.C. R. L. Rcid. K.C.
D. S. Wallbridge A.H.Douglas J.G.Gibson
BOWSER. REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers. Solicitors, Etc.
Solicitors for Hank of .Montreal (Bank of
British North America Branch)
Yorkihire BnildioK. 525 Se?inoar St., Vancon«r, B.C.
Your Card here would ensure it being
seen by the principal financial and
commercial interests in Canada.
Ask about special rales for
this page.
THE MONETARY TIMES
Volume 66
NEWS OF INDUSTRIAL DEVELOPMENT
Fewt-r Canneries Will Operate in British Columbia This
Year — AlRoma Steel Corporation Secured Larffe Kail
Order From Dominion (iovernment — Cotton I\Ianu-
facturers Convene With (iarment Makers
On i'rice Reductions
INDICATIONS are that only about forty-six of the British
Columbia canneries will operate this year out of a possible
ninety-two, according to reports from the Eraser River dis-
trict. Last year about sixty-one were in full swing all
season and the pack of chums and pinks is still in the hands
of the cannerymen awaiting a favorable opportunity to
market. The sockeye season will open on the Eraser River
July 1, but in the northern waters on June 19.
The British Columbia cannerymen have decided not to
unite with the combination of British brokers who are inter-
ested in the marketing of all red fish in Great Britain and
Europe. The reason given locally is that these British brok-
ers have on hand about 400,000 cases of Japanese and
Siberian red fish, and these cans, like 95 per cent, tins going
to Britain are labelled after they get to London. Some of the
United Kingdom brokers are financially interested in can-
neries in Siberia, and others have supplied money for canning
operations for a season in order to get an option of the pack.
With these points in view the British Columbia cannerymen
decided that the Canadian fish would have but little chance
until the Siberian fish had been marketed.
Cost of production was another matter which entered
into this decision. Canada gave the Canadian cannerymen
a tariff to protect them against cheap fish from Japan in-
vading this market, on the ground that it was of an inferior
grade, and also, being canned at a low cost the Canadian
cannerymen could not compete. As the Dominion takes about
15 per cent, of the salmon packed in British Columbia, and
Great Britain takes about 65 per cent., the cannerymen de-
cided there was four times the necessity to impress upon the
British government the rights of the colony and demand
better treatment in inter-empire trade. To forcibly place
their case before the British government the cannerymen de-
cided that they could do so better without being hampered
by an international alliance of fishing interests in which
Japan and Siberia would play an important part.
Mining in Nova Scotia
The cost of producing coal in the Nova Scotia mines is
in the neighborhood of $5 per long ton, according to evidence
given before the Special Parliamentary Committee on Fuel
Resources last week by representatives of the United Mine
Workers. The laborers received $2.30 out of that $5 total.
The mine operators are asking the Canadian National Rail-
ways for $7 per ton for coal at the mines on the basis of the
short ton, which gives the coal operators the advantage of
240 pounds on each ton. Halifax coal dealers, selling to
householders, make a spread of $4.25 for taking the coal off
the cars and delivering it to the consumers cellars, while the
workers made only $2.50 per long ton for producing the coal
at the mines. The U.M.W. witnesses complained of wretched
living conditions at the mines, and of low wages, made worse
by lengthy periods of idleness.
Reports from Sydney Mines, N.S., speak of gloomy em-
ployment conditions. Workers who were employed at the
Nova Scotia Steel and Coal plant, have been idle since last
November, and are unable to get official information regard-
ing the resumption of work. Many miners are also out of
employment. The situation is regarded as serious, and there
is no visible sign of a change for the better.
Algoma Steel Gets Order
The Algoma Steel Corporation has received an order
from the Dominion government for 50,000 tons of rails for
the Canadian National Railways. The plant at Sault Ste.
Marie, Ont., is in full operation on the contract, which will
require about two months to complete. Two thousand men
are at work. The price paid has not been disclosed.
The Maritime Foundry Co., Ltd., Chatham, N.B., manu-
facturers of engines, planing mill machinery, etc., has closed
down, because of the dullness in the milling and pulp and
paper business. It is hoped by the management that opera-
tions will be resumed shortly.
Employment conditions in the New Brunswick milling
industry have become settled. The men have agreed to the
companies' terms, and a busy season is looked for. Stanley
Douglas, Limited, have commenced operations at the mill at
South Devon, with a ten-hour working day, and wages re-
duced 15 per cent. The estimated amount of lumber to be
cut this year is given at 5,000,000 feet of long lumber and
2,000,000 "feet of cedar for shingles.
Frasers Companies, Ltd., have commenced operations at
their mill at Magaguadavic. The season's output, it is esti-
mated, will be about 4,500,000 feet.
Tlie Prince Rupert Pulp and Paper Co., recently incor-
porated in British Columbia, is asking industrial privileges
at Seal Cove within the Vancouver limits. The company
will erect a sulphite mill with a capacity of fifty tons of pulp.
It will operate in conjunction with the Emerson sawmill,
and the intention is to later build a large paper mill.
Garment Prices and Wage Reductions
Leading men in the Canadian garment manufacturing
industry, who are now in Cleveland taking part in the Inter-
national Association of Garment Makers' convention, met in
Toronto this week to discuss matters at issue between the
garment manufacturers and the cotton goods manufacturers.
Three representatives of the three big mills which control the
supply of Canadian-made cotton goods met the garment
manufacturers in the conference, which was held at the King
Edward.
Replying to i-epresentations from the garment makers
urging a drop in the price of cotton fabrics, the mill men
stated that prices at present were at the lowest possible
point, and there could be no further drop, except in the case
of a drop in wages. Wages in the cotton mills have decreased
twelve and a half per cent, since the war, but the increase
over the pre-war rate of wages is reckoned to be 157 per
cent. Wages in the Southern States for cotton mill em-
ployees have dropped considerably, and Canadian manufac-
turers are anticipating decreases in the mills of the Do-
minion.
Deciding to accept a 10 per cent, wage cut, the sheet
metal workers of Windsor, Ont., and adjacent municipalities
returned to work this week. They had been on strike since
May 6.
It is reported from Montreal that instructions have been
issued to the refinery of the Atlantic Sugar Co. at St. John,
N.B., to operate at full capacity. For several weeks the
plant has been running at about 50 per cent., but several im-
Dortant export orders have recently been taken which will
tax their capacity of 1,000.000 lbs. daily for some time.
FUR PRODUCTION OF CANADA
The Dominion Bureau of Statistics has completed its
census of raw furs for the season 1919-20. The preliminary
statement shows the total value of pelts of fur-bearing
animals taken in Canada during the season 1919-20 to be
821,197,372. To this total Ontario contributed $6,414,917,
Quebec $4,587,110, Manitoba $3,130,627, Saskatchewan $2,-
338,761. Albsrta $1,550,009, Northwest Territories $1,118,972,
British Columbia $742,242, Prince EJward Island $660,704,
Nova Scotia $287,990, New Brunswick $225,871, and Yukon
Territory $140,169.
The principal furs in order of value were: Muskrat,
.$5,966,762; beaver, $5,336,067; marten, $1,787,940; mink,
$1,697,561; silver fox, $932,602; fisher. $859,178; coyote, or
prairie wolf, $727,093; wihte fox, $713,210; red fox, $669,689;
ermine, $599,641; skunk, $435,286; otter, $382,479; lynx (in-
eluding wildcat), $231,834; patch fox, $227,217: raccoon,
$198,755; timber wolf, $166,066; black bear. $"08,832.
May 13, 1921
THE MONETARY TIMES
29
The Imperial
Guarantee and Accident
Insurance Compzuiy
of Canada
Head Office, 20 VICTORIA ST., TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $200,000.0«
Authorized Capital - - - $1,000,000.00
Subscribed Capital - - - $1,000,000.00
Government Deposits $111,000.00
Lr^J^r\C\'^ GUARANTEE AND
V-^ 1^ Muf V-^ 1^ ACCIDENT COY., Limited
Head Office for Canada - Toronto
,:>tor. Contract. Pe
al Revenue. Sickne
Teums :md Automobile-
AND FIRE INSURANCE
IT PAYS TO INSURE YOUR AUTOMOBILE
WITH
The Canadian Surety Company
Maximum Service.
Mu
Cost.
CANADIAN STRONG PROGRESSIVE
A^ ^ijSiSWi^'^^jMyeee^iweMrf
FIRE INSURANCE
AT TARIFF RATES
Capital Subscribed
$500,000 Automobile
Insurance
Fire and
Theft
Burglary
A. K. Ham. Vice-Preaidenl HoMi; Oniui:
.1 n .Mei IK, Sec.Trtas. 10th Floor, Electric Railway Chambers
Good Openings for Live Agents
Palatine Insurance Company
LIMITED
OF /.OA'DOA', E^'CLA^'D
Capital Fully Paid - $1,000,000
Fire Premiums, 1919 3,957,650
Total Funds - 6,826,795
Head Ofjict : — Canadian Branch
COMMERCIAL UNION BUILDING, MONTREAI
\V. S. JOPLINO, Manager
7"oron(o Office— 6Q KING STREET WEST
Jones * Proctor Bros.. Limited. AKcnts
piHimniiiiiiDiiiiiiiiiii^
I Automobile— 1 92 1 —Season |
— ^ ^
I Policies to cover ANY or ALL motoring risks |
ATTRACTIVE AGENCY CONTRACTS
British Empire Fire Underwriters
82-88 King Street East, Toronto
Assets Exceed $4,000,000
iMiiiMiBiiiMiiiiiiiiiiiiiiiiiiiiniiiNiiiiimmiiiiiiniiiiiiiiiiiiiiiiiiiiiiniiniiiiniiiiMiw^
THE EMPLOYERS'
LIABILITY ASSURANCE CORPORATION
OF LONDON, ENG. LIMITED
ISSLKS
Personal ."Xccideiit Sickness
Employers' Liability Automobile
Workmen's Compensation Fidelity Guarantee
and Fire Insurance Policies
C. W. I. WOODLAND
General Manas*"'' for Canada and Newfoundland
Lewis Building.
MONTREAL
JOHN JENKINS.
Fire Manager
Temple Bldg.
TORONTO
Fire Insurance Compan . Limited, of PARIS. FRANCE
Capital fully subscnbcj. .^li"c pa. J up. . , .
Kirc .->nd C.eneral Reserve Funds
Available Balance from Profit and Uiss !
Net premiums in ISlit
Total Losses paid to 31st December. 1919
ian Branch. 17 St John Street. Montreal
CK Ferrami. Toronto Offices. J. H. Ew
l-:ast : R. B. Rice & Sons. Toronto .\»
t ■j.wtn.WHP.oo
8.27<).IK)0.1MI
nt S.i.89l.0()
K.ii48.669.(H)
.. IM.ijOO.OOn.OO
.Manager for Canada,
Chief Asent, 18 Wellington
r* Victoria Street.
THE MONETARY TIMES
Volume 66
NEW INCORPORATIONS
Capital for Week Ended May 11 is $25,703,400, Compared
with $20,359,900 Previous Week
Authorized capital of $25,703,400 is represented by com-
panies whose incorporations were reported to The Monetary
Tiiius during the week ended May 11, compared with $20,-
359,900 the previous week. A comparative summary by pro-
vinces is as follows: —
Week ended Week ended
May 4. May 11.
Dominion $ 2,044,000 $12,818,000
Alberta 1,325,000
British Columbia 2,680,000 2,580,000
Manitoba 250,000 60,000
New Brunswick 49,000
Ontario 11,520,000 6,966,500
Quebec 3,816,900 1,403,900
Saskatchewan 550,000
Totals $20,359,900 $25,703,400
The following is a list of companies recently incorporated
under Dominion charter, with head office and authorized
capital: —
Italian War Veteran Co-operative, Ltd., Montreal, $20,-
000; ^etna Leather Works, Ltd., Montreal, $49,000; Chamber-
Haupt Co., Ltd., Montreal, $49,000; De Giorgio, Ltd., Mont-
real, $100,000; Odorono Co., Ltd., Toronto, $100,000; Willard
Storage Battery Co. of Canada, Ltd., Toronto, $500,000; Vine-
berg-Samit, Ltd., Montreal, $100,000; Power Equipment Co.,
Ltd., Montreal, $50,000; Petroleum Corp., of Fort Norman,
Ltd., Toronto, $1,000,000; Howard Straehan and Co., Ltd.,
Montreal, $50,000; Parker Motor Car Co., Ltd., Winnipeg,
$10,000,000; Canadian Vaporizer Co., Ltd., Toronto, $100,000;
Bell Silks, Ltd., Montreal, $50,000; Dominion Bond Corp.,
Ltd., Toronto, $300,000; Doheny Pulp and Hardwood Lumber,
Ltd., Montreal, $50,000; Grosart and Sinton, Ltd., Montreal,
$50,000; Moovit Drug Co., Ltd., Montreal, $50,000; Foreign
and Domestic Realty, Ltd., Toronto, $200,000.
Provincial Charters
The following is a list of companies recently incorporated
under provincial charter, with head office and authorized
capital: —
Alberta.— Liverpool Co, Ltd., Calgary, $50,000; Prairie
Natural Gas Co., Ltd., Calgary, $500,000; Pan-Pacific 0;i Ex-
change, Ltd., Edmonton, $10,000; Mackenzie River Transpor-
tation Co., Ltd., Fort McMurray, $20,000; United Canada
Petroleum Co., Ltd., Edmonton, $50,000; United Western Oil
Co., Ltd., Edmonton, $50,000; Fawcett Trading Co., Ltd.,
Fawcett, $20,000; McFarland Shoe Co., Ltd., Edmonton,
$125,000; Alberta Standard Coal Co., Ltd., Edmonton, $300,-
000; Great North Services, Ltd., Edmonton, $100,000; Shaw
Bros. Wholesale, Ltd., Edmonton, $50,000; Empire Silo and
Supply Co., Ltd., Calgary, $10,000; Grande Prairie Co., Ltd.,
Grande Prairie, $20,000; West Printing Co., Ltd., Calgary,
$20,000.
British Columbia. — British Columbia Wood, Wool and
Fibre Products Co., Ltd., Vancouver, $25,000; Fine Art Fur-
niture, Ltd., Vancouver, $10,000; Pascoe and Co., Ltd., Van-
couver, $25,000; Dominion Motors, Ltd., Vancouver, $10,000;
North Shore Realty Specialists, Ltd., North Vancouver, $10,-
000; Motor Transport, Ltd., Victoria, $20,000; Manchester
Warehouse Co., Ltd., Vancouver, $25,000; Rithet Consolidated,
Ltd., Victoria, $1,500,000; Great Slave Oil and Refining Co.,
Ltd., Vancouver, $750,000; Vancouver Baseball Club, Ltd.,
Vancouver, $25,000; Northern Freighters, Ltd., Vancouver,
$50,000; Cranes' Shipyards, Ltd., North Vancouver, $10,000;
The "Ellen Group" Gold Mining Co., Ltd., Vancouver,
$120,000.
Manitoba. — Porcupine Sales Corp., Ltd., Winnipeg, $50,-
000; Western Prairie Investments, Ltd., Winnipeg, $10,000.
Ontario. — Deseronto Cheese Factory, Ltd., Deseronto,
$10,000; Gold Nugget Mining and Development Co., Ltd.,
Sudbury, $500,000; Grant-Chater, Ltd., Toronto, $40,000; St.
George Co-operative Fruit Growers, Ltd., St. George, $14,-
000; D.C.Grant, Ltd., Peterborough, $50,000; Menzie Estates,
Ltd., Oakville, $40,000; Windsor Sausage Co., Ltd., Windsor,
$60,000; Sandwich Foundry, Ltd., Sandwich, $200,000;
Queen's Hotel, Toronto, Ltd., Toronto, $750,000; McCraney
Lumber Co., Ltd., Hamilton, $40,000; Ferguson Manufacturing
Co., Ltd., London, $40,000; American Matachewan Gold Min-
ing Co., Ltd., Toronto, $1,000,000; T. H. Brown Co., Ltd.,
Toronto, $40,000; Canadian Review Co., Ltd., Toronto, $40,-
000; Toronto-Grey Gas and Oil Co., Ltd., Toronto, $600,000;
Pahquana Country Club, Ltd., Toronto, $100,000; Chamberlain
Desolvo Co., Ltd., Toronto, $40,000; Echo Bowling Club, Ltd.,
Echo Place, $40,000; Kasement Skrene Dore Co., Ltd., To-
ronto, $.50,000; Solidbord Co., Ltd., Toronto, $3,000,000; S. W.
Moore, Barrie, $40,000; Textile Trimmings, Ltd., Toronto,
$40,000; Port Perry Rink Co., Ltd., Port Perry, $15,000;
Master-Valve Co., Ltd., Toronto, $100,000; Standfield-Mac-
pherson Co., Ltd., Toronto, $40,000; Leith Hall Co., Ltd.,
Leith, $2,500; Burford United Farmers Co-operative Co., Ltd.,
Burford, $25,000; Woodstock Masonic Temple, Ltd., Wood-
stock, $40,000; Clearview Dairy Co., Ltd., Township of Shef-
field, $10,000.
Saskatchewan. — Silk Importing Co., Ltd., Regina, $20,-
000; Briercrest Rink Association, Briercrest, $10,000; R. E.
Bailey, Ltd., Moose Jaw, $50,000; Regina Baseball Associa-
tion, Regina, $20,000; Riddel Can-iage and Motor Works,
Ltd., Saskatoon, $100,000; Live Stock Feeders, Ltd., Moose
Jaw, $15,000; Moosomin Meat Market, Ltd., Moosomin, $10,-
000; Great West Stores, Ltd., Regina, $150,000; Regina Vul-
canizing Co., Ltd., Regina, $10,000; New Method Wet-Wash
Laundry, Ltd., Regina, $20,000; Biggar Curling Rink, Ltd.,
Biggar, $5,000; Steel's Studio, Ltd., Saskatoon, $25,000; Van-
Kel Chemical Co., Ltd., Swift Current, $5,000; Prince Albert
National System of Baking, Ltd., Prince Albert, $20,000;
Campkin-Bellinger Agency, Ltd., Regina, $25,000; A. W.
Cassidy and Co., Ltd., Saskatoon, $65,000.
Quebec. — Chicoutimi Transportation, Ltd., Chicoutimi,
$5,000; Webster Financial Corp., Ltd., Quebec, $1,000,000;
Le Club Colomb de Chicoutimi, Inc., Chicoutimi, $49,000;
C. O. Saint Jean, Ltd., Sherbrooke, $99,000; Gosselin Shoe
Co., Quebec, $49,900; Grove Park Estate Co., Montreal,
$200,000.
ACADIA FIRE INSURANCE COMPANY
A successful year was completed by the Acadia Fire
Insurance Company in 1920, with greater earnings and smaller
losses. In the fire department gross pi-emiums amounted to
$539,911, as compared with $413,407 in 1919. After deducting
return premiums and reinsurances, net cash received for
premiums amounted to $258,181, against $227,602 previously.
The hail department was equally as successful, showng gross
premiums of $173,294, and net, $36,153, compared with $103,-
248 and $23,981, respectively, in 1919. Total net income,
including $44,239 from interest and rents, amounted to $338,-
573, compared with $312,536.
Turning to the losses, shows that the fire department
contributed $102,664 and the hail department, $7,570, making
a total of $110,234, compared with $120,128 in 1919. Com-
mission and general expenses totalled $94,543, against $67,156
previously. After paying dividends at the rate of 6 per cent,
on the paid-up capital of $400,000 there remained a balance
to be carried forward of $217,511, compared with $151,412
in 1919.
The Acadia Fire Insurance Company is an organization
of long standing, having been incorporated in 1862. It was
not until 1905, however, that a Dominion license was secured,
and previous to that date the company's operations were con-
fined entirely to the province of Nova Scotia. The total
assets are now $913,870, and the surplus to policyholders is
$636,922.
The Vancouver office of the Standard Trusts Company
has been moved to 541 Pender Street, of that city.
May 13, 1921
THE MONETARY TIMES
31
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto "Solid as the Continent." Insurance
in Force. Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID AS THE CONTINENT ■
HEAD OFFICE
TORONTO
Important Features of the Ninth Annual Report
WESTERN LIFE ASSURANCE CO.
HEAD OFFICE - WINNIPEG, MAN.
Assurances, New and Revived 31,308,750.00
Premiums on same 4-4,705. 25
Assurances in Force 4,233,907 35
Total Premium Income . .... 128,286.67
Policy Reserves 291,969.00
Admitted Assets 358,667.36
Average Policy 2,306,04
Premium per $1,000 Insurance — Collected in
Cash 30.30
For particulars of a good agency apply to
ADAM REID. Manasinic Director WINNIPEG
The Mutual of Canada Day by Day
During the year lifiO the avcruRe payments in benetiis of different kinds
to hencHciaries and policyholders amounted to $11,500 for every
working d»y throughout the year, a total of $3,492,830- Every year
the payments have increased, the total made since the establishment of
the company beins over thirty-three millions. The funds in hand to
guarantee future payments amount to forty-two millions — so that the
company has either paid or holds in trust more than *75.0O0,(X»O. This
total exceeds the premium income by eight millions. These figures show
that the Mutual Life of Canada is making good on all contracts entered
into in past years. U is not only "making good." it is " making better."
for the profits alone actually paid during the years since establishment
amount to eight millions of dollars, a record of economy and service of
which any life office might justly be proud.
The Mutual Life Assurance Co. of Canada
Waterloo Ontario
"For the man of vision."
Policies which may be adjusted to meet changed cir-
cumstances The '* Canadian * Series issued onlyby
The London Life Insurance Co.
HEAD OFFICE
LONDON, CANADA
ONTARIO ORGANIZER WANTED
THE CONTINENT.AL LIKE INSURANCE COMPAN'i . TORONTO.
desire ihr services of a bright, cnpable young man as ONTARIO
ORGANIZER.
Apply to S. S. WEAVER
Eastern Superintendent
THE CONTINENTAL LIFE BUILDING,
Bay and Richmond, - TORONTO, ONT.
The Question of the Future
LEAVE GUESS^VORK TO FOOLS
Because you arc well today and arc able to earn a fiood livinK
for your wife and family is no indication of how you will be a
year from now. ^'ou can't afford to liamble with the welfare
of your fjmiU as the stake. No matter what happens i<» you
their future should be made secure.
LIFE INSURANCE IS YOUR SAFETY
Not every man is able to make a fortune during his lifetime.
But every man in good health can protect his family with life
insurance. This mcssaue has a definite meaninu to you Don't
n.iss It by • .MaUc an .ipruintment with The (;reat.\VLst I.ife
AKcnt.
THE GREAT- WEST LIFE ASSURANCE COMPANY
HEAD OFFICE
WINNIPEG
The Western Empire
Life Assurance Company
Head Office: 701 Somerset Building, Winnipeg, Man.
SASKATOON
Branch Oppicbs
CALGARY EDMONTON VANCOUVER
Northwestern Mutual Fire AssociatioD
SEATTLE WASH.
Head Office for Canada, Hamilton, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NOR.MAN S. JO.NES. Manager R. J. M.AHONY. .Asst ManaKer
"Security First"
EXCELSIOR
INSURANCE LI PE tOMPANV
Ash about uiirSI>ccial Invest-
ment Policy. It's Hetr .'
HEAD OFFICE-
EXCELSIOR LIFE BUILDING
Adelaide and Toronto Streets
TORONTO - CANADA
THE MONETARY TIMES
Volume 66
NEWS OF Ml'NICH'AL FINANCE
\'ii-toria Sinking Fund is in Arrears by a Large Sum — Ed-
monton's Budget Reflects Favorable Conditions —
(ilaee Bay Tax Rate is Not Increased
Glace Bay, N.S.— The tax rate for 1!»21 will be oVs per
cent., which is the same a.s for 1920.
Leader, Sask. — A better financial position is shown in
the annual statement of the municipality. Taxes collected
last year amounted to .$25,409, as compared with $24,2.35 in
1919, while arrears Ere now only $4,431, as against $5,335
in 1919. The debenture debt has been reduced from $22,837
to $20,489, and the surplus of assets over liabilities is $18,883.
Total assessment valuation in 1920 was $850,575, com-
pared with $836,847 in 1919, and the tax rate last year w&s
40 mills, as against 37 mills previously.
Outremont, Que. — In analysing the financial position of
the municipality last week, to ascertain the ability of the
corporation to borrow money, it was declared by the Montreal
Meti'opolitan Commission that the total value of property in
that municipality was $29,011,059, and as the amount of
properties exempted from taxation was $6,036,459, this left a
balance of $22,974,600 of taxable property. The statement
further showed the limits of Outremont's borrowing power
based at 15 per cent, on assess;;>ble property to be $3,446,190,
and as the amount for local improvements was $1,535,446,
this gave a total of $4,981,632. It was also shown that as
the total debenture debt of Outremont was $2,850,000, &nd
as the municipality was asking for a further loan of $750,000,
this made a total of $3,600,000. and with the latter amount
deducted from the amount of the borrowing power, this left
an available balance over and above the proposed issue, of
.$1,381,632, which the commission regarded as a safe margin.
Edmonton, .Vita. — A comparison of the proposed expen-
<litures for 1921 with 1920, reveals a satisfactory condition
of affairs. The following are the figures: —
1921. 1920.
General municipal purposes $ 924,324 $1,375,557
General debenture interest and sink-
ing fund 973,331 898,824
Public school board 1,126,006 1,112,900
Sep&rate school board 124,342 106,015
Library board 43,964 49,098
Total expenditures 3,191,967 3,542,394
The tax rate this year is 39.90 mills for public school
supporters, and 38.80 mills for separate school supporters,
as compared with 45 mills and 41. 7<) mills, respectively, last
year.
For the first quarter of 19"il. civic utilities accumulated
a surplus of .$84,240, as compa^red with a surplus of $28,019
in the same period of 1920. All departments had a sub-
stantial excess of eai-nings over expenditures, with the ex-
ception of the street railway, which showed a deficit of $12,-
386. The deficit of this department for 1920, however, was
$17,377, so that there has been an improvement.
Victoria, B.C. — Seventy-five per cent, of the city taxes
were paid last year, or approximately the same as in 1919,
and 5.88 per cent, better than in 1918, according to the report
of James L. Raymur, city comptroller. Mr. Raymur says: —
"In November the price of Victory LoE^n bonds being at
93, we purchased $100,000 for ojr sinking fund. During the
year the policy of receiving Victory bonds for taxes was con-
tinued, the bonds being taken at their market value and
placed in the sinking fund. In 1920 the bonds so taken
amounted to $10,450. lYi February $50,000 Dominion War
Loan bonds, due 1922 and bearing interest at 5 per cent.,
were exchanged for $50,000 Victory bonds due 1934, bearing
interest at the rate of 5V2 per cent. In .\pril $25,000 Vic-
tory bonds, due 1934 bearing interest at 5V^ per cent., were
purchased at 97. Province of British Columbia bonds, due
1939 bearing interest at 5 per cent., amounting to $60,000,
were bought at 88.75. Our holdings of Victory bonds now
amount to -$1,209,550, and of British Columbia bonds to
$108,000. Other than moneys deposited in the bank, these
are the only securities in which our sinking funds are in-
vested. On January 1, 1920, we held city of Victoria deben-
tures amounting to $115,553, due in 1920. These were paid
off e.'S they fell due, and the proceeds deposited in the sink-
ing fund.
"The general purpose sinking fund is intact, but the local
improvement is, unfortunately, short the sum of $2,806,995.
Debentures are due in 1921 amounting to $498,225, and in
1922 to $284,231. These can be taken care of, but in 1923,
when $2,466,982 falls due, refunding will have then to be
resorted to; authority for this was obtained at the 1920
session of the legislature.
"The annual tax sale was held in October, and property
of the assessed value of $321,800 was sold to private pur-
chasers for the sum of $80,213. The city bought in property
of the assessed value on land of $2,663,270, the taxes, interest
and costs on which amounted to $1,100,296. Property to the
assessed value of land of $233,780 has either been redeemed
or the city's equity purchased, and as there are valuable im-
provements on some of the property, it is expected that a
further amount will be redeemed before next October, when
the year allowed for redemption expires."
FUTURE OF PUBLIC UTILITIES
A circular has been prepared by McCuaig Bros, and
Company dealing with the public utility stocks and the situa-
tion as applied to the companies. The circular points out that
at the present moment prices of street railway, lighting and
gas companies offer greater possibilities than any oth;r class
of bonds and stocks. The circular says: —
"The recent collapse in commodity prices, wh'ch forced
industrial concerns to wi-ite down their inventories to present
market values, has been a veritable blessing to street railway
and lighting companies, owing to the great saving in operat-
ing expenses due to the prevailing low prices of coal, copper,
lumber, rails, etc. Moreover, it is by no means certain that
the declining movement of commodity pi-ices is at an end.
Still further economies may be effected by corporations —
the outlook for public utility securities is perhaps better than
ever before, and they promise to rapidly regain the popu-
larity which they enjoyed prior to the war."
The circular then goes on to review the position of vari-
ous public utility securities holding out interest to Canadian
investors. Each one is taken individually and briefly but
thoroughly analyzed. Returns on these securities at the
present time vary from 6.09 to 9.58 per cent.
PRICES DECLINE IS SLOWER
The ' index number of wholesale pi-ices, constructed by
Professor H. Mitchell, of McMaster University, Toronto,
stood at 186.4 for the month of April, showing a decline of
1.8 per cent, from the previous figure for 190 for March, and
a total decline of 37.8 per cent, from the peak of 298.3,
reached in May, 1920. Among the twenty foodstuffs listed
declines were registered in flour, mutton, pork, bacon, lard,
butter, cheese, sugar, potatoes, oatmeal and tapioca. Ad-
vances occurred in beef and fish. In the twenty manufactured
goods declines were registered in rubber, leather, galvanized
sheets, coal oil, and advances in cotton, silver, lead and hard
maple.
It will be noticed that the decline this month is very
small, being almost exactly half of the decline in March.
This steadying of prices was expected, having been predicted
as far back as the beginning of the year. It is to be noted
that such great staples as wool, cotton, hides, lead, copper,
tin and lumber have ceased to fall, and in some cases have
risen slightly. The steadiness in stock exchange prices would
seem to foreshadow a continued steadiness in commodity
prices during the summer, with perhaps a resumption of the
decline in the autumn.
Mav 13, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
noiissERW>oi>v<°G>MRV«r
INVeSTMENT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
high grade industrial
securities;
12 KING ST. EAST
TORONTO
OSLER, HAMMOND & NANTON
WINNIPEG
Stock Brokers and Financial Agents
Insurance Mortgage Loans
Real Estate
■1
"The Hill Roads"
A short history and description of the North-
ern Pacific Railway Company. The Chicago
Burlinerton and Quincy Railroad Company
and the Great Northern Railway Company.
Our United States Correspondents have prepared
a concise, intereetingr, and timely pamphlet which
we shall be gl&d to send to investors upon request.
Harris, Forbes & Company
INCORPORATED
C.P.R. Building 21 St. John Street
TORONTO MONTREAL
WE OFFER
Alberta Municipal District
AND
Rural School Bonds
Maturing scrialh in 10 to 20 \;cuis.
To yield 7i% to 8%
W. Ross Alger & Company
INVESTMENT BANKERS
Royal Bank Chambers Bank of Toronto BIdg
CALGARY EDMONTON
c.
H.
BURGESS & CO.
Government and
Municipal Bonds
14
King
Street East
Toronto
The Bond House of British Columbia
WE ARE !N THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
"FOREIGN INVESTMENTS"
Canadian investors have now the greatest opportunity
they ever had of reaping well assured profits by investing
in Government and Municipal European Bonds.
Special attention is drawn to French and Italian Bonds,
which lately have shown great activity and increased
prices; and are well worth immediate consideration.
NOW IS THE TIME TO BUY !
For further particulars and quotations apply to:
R. M. HEFFERNAN & CO., Ltd.
Jackson Building, Ottawa
THE JIONETARY TIMES
Volume 66
Government and Municipal Bond Market
Ontario's Loan Increased — Greater Winnipeg Water Securities Have Been Fairly
Well Absorbed — Victory Loan Prices Stronger — Windsor Borrows on 6.56 Per
Cent. Basis — Talk of New Financing by Canadian Government in New York
98%
981/4
98.50
98.50
98
971/2
98.00
98.00
99%
99%
99.00
99..30
98%
98
98.00
98.10
98
98%
97.30
97.30
96%
96%
96.50
96.75
951/i
95%
94.95
95.00
THERE was nothing in the budget, which was brought
down this week at Ottawa by the minister of finance,
to influence the government and municipal bond market ad-
versely or otherwise. There is still a good demand for securi-
ties, and prices were firm. The issue of Greater Winnipeg
Water District bonds brought out last week h&s been pretty
well absorbed at a price to yield the investor 0.30 per cent.
Ontario's $5,000,000 was taken up at 6.05 per cent., and from
what can be understood, the issue has been increased to a
figure somewhere in the neighborhood of $15,000,000 and
these additional bonds are being marketed at the same price
as the original block.
Victory loan prices were stronger, including the taxable
issues. The following comparisons give the recent trend: —
Control Close Close Close Close
price. Jan. 26. Mar. 2. May 4. May 11.
1922 98
1927 97
1937 98
1923 98
1933 96y2
1924 97
1934 93
There is talk in New York of new financing by the Do-
minion government, to pay off the securities maturing in
August, and to build up depleted bal&nces. As far as known,
negotiations have not yet been inaugurated, but are expected
to be during the early part of the summer. The August 1
maturity of the Canadian government is $15,000,000 5% per
cent, notes, now quoted at 99%. Their recent strength has
been noticeable, as less th&n three weeks ago the bonds sold
at 96.
The Canadian government had a maturity of $25,000,000
in New York on April 1. Efforts were made at the time to
do some new financing, but officials of the Dominion demurred
at the IV2 per cent, rate required by the bankers. So the
Canadian government shipped approximately $9,000,000 of
gold to New York, and made up the remainder of the ma-
turity from its balances at that centre.
The new financing is expected to be approximately $40,-
000,000, which not only will pay off the $15,000,000 maturity,
but will replenish the depleted balances of Canada in New
York. It is pointed out by bankers familiar with the finan-
cial afi'airs of the Dominion that its payment of its April
1 maturity, in large part, out of balances there, w&s a tem-
porary measure, and that it is the intention of Dominion
officials to replenish these balances at the earliest oppor-
tunity. The opinion is expresssed by bankers that the finan-
cing should be accomplished on a 7 per cent, basis.
Coming Offerings
The following is a list of debentures offered
particulars of which have been given in this or
issues: —
Borrower. Amount.
York Tp., Ont $ 210,000
Peterboro, Ont. . ; . . 230,000
Sarnia,, Ont 189,434
Renfrew County, Ont. 250,000
S&skatoon, Sask 204,000
Pembroke, Ont. 80,324
Toronto, Ont 5,000,000
WestbourneR.M.,Man. 60,000
Vermilion, Alta 10.000.
Rate 7c- Maturity.
6 10-instal.
6 14, & 6 1/2 20-years
6 & 6% Various
6
5&6
6
6
6
20-years
Various
Various
Serials
30-instal.
20-instal.
for sale,
previous
Tenders
close.
May 16
May 16
May 17
May 17
May 23
May 25
June 1
June 7
June 11
York Township, Ont. — Tenders will be received until May
16, 1921, 4 p.m., for the purch&se'of $210,652.91 6 per cent.
10-instalment sidewalk debenture^
' Westbourne R.M., Man. — Tenders will be received until
June 7, 1921, for the purchase of $60,000 6 per cent. 30-instalJ
ment debentures, the proceeds of which will be used for con-
structing and improving roads, bridges and culverts. A. M.
McGregor, secretary-treasurer.
Pembroke, Ont. — Tenders will be received until May 25,
1921, 3 p.m., for $80,324 6 per cent. 10, 20 and 30-instalment
debentures, the proceeds of which will be used for local im-
provement and waterworks purposes. (See advertisement
elsewhei-e in this issue.)
Toronto, Ont. — Tenders will be received until June 1,
1921, for- the purchase of $5,000,000 6 per cent, serial bonds,
issued on account of the acquisition and the rehabilitation of
the Toronto Railway Co. (See advertisement elsewhere in
this issue.)
Debenture Notes
Outremont, Que. — Electors hs-ve voted in favor of bor-
rowing $750,000 for various local works.
Thetford Mines, Que. — Ratepayers have approved a by-
law authorizing the borrowing of $60,000.
Windsor, Ont. — The Separate School Board h&s turned
down all offers for $225,000 6 1/2 per cent. 30-instalment de-
bentures.
Victoria, B.C. — The city will endeavour to float a loan of
$225,000 for the building of a new unit for the Provincial
Royal Jubilee Hospital.
Verdun, Que. — The council has passed two money by-
laws, one providing for $100,000 to cover gJtei-ations to the
filtration plant, and the other for $26,500 for local improve-
ments.
Preston, Ont. — Ratepayers have voted in favor of loan-
ing $15,000 to the H. W. Steel Shank and Specialty Co. for
a period of ten years, with interest at the rate of 6 per cent.
St. Lambert, Que. — -The by-law authorizing a loan of
$500,000 for a new fire station, sidewalks, sewers and water
service has just been approved by the Lieut. -Governor-in-
Council. The by-law was voted on June 7, 8 and 9, 1920,
but was disapproved by the Department of Municipal Affairs
on account of a technicality. The town council then ap-
pealed to the provincial cabinet through the minister of
municipal aff'airs, with the result that the by-law has been
approved.
Lindsay, Ont — The municipality this week asked for ten-
ders on the following debentures: $15,000 6 per cent. 1921-
35; $20,000 6 per cent., 1921-40; $9,794.31 6 per cent., 1921-
31; $11,200.67 6 per cent. 1922-31; $3,154.68 6 per cent., 1922-
41; $1,545.19 6 per cent. 1922-26. The bids received were not
considered satisfactory and the debentures will be offered to
local citizens.
Saskatchewan. — The following is a list of authorizations
granted by the Local Government Board from April 23 to
30, 1921:—
Schools, 8 per cent. — Garvagh, $3,500 10-instalments;
Affleck, $3,500 10-years annuity; Fur Lake, $1,600 10-years
annuity; Blighty, $5,000 10-instalments; Kutawa, $4,600 10-
years annuity; Driver, $1,200 8-years annuity.
Rural Telephones, 8 per cent. — Rhein, $1,500 15-years
annuity; Stramaer, $1,000 10-years annuity; Denzil, $1,500
15-years annuity; Elrose, $2,600 15-years annuity; Speers,
$1,200 15-years annuity.
Villages.— Aberdeen, $4,000 8 per cent. 15-instalments,
for concrete sidewalks. Luseland, $2,500 8 per cent. 10-in-
stalments, for cement crossings.
Mav 13, 1921
THE MONETARY TIMES
Bonds Issued by
Ontario Municipalities
provide the purchaser with security,
a convenient method of collecting
interest and a substantial yield.
We suggest :
Town of Oshawa
6% Bonds
Due 1st March. 1927-51
Price: Rate to yield 6.35%
Write for descriptive circular
Wood, Gundy & Company
Canadian Pacific Railway Buitdiny
Toronto Saskatoon
Montreal Toronto New York
X^'innipcf; London, Eng.
For Income
and Profit
we advise the purchase nowoi certain
Canadian Government, Municipal
and Corporation Bonds and fixed-
interest securities.
They are safe investments. At to-
day's prices they yield high incomes.
Bought now, they should show sub-
stantial profit.
Write us and we will give you their
names.
Royal Securities
^ ^CORPORATION
I. I
TOROiNTO
WINNIPEG
M I T E D
MON TKKAL
HALIFAX ST. JOHN. N.B.
VANCOUVEK NEW YORK
LONDON. Eng.
\V. L. McKINNON
DEAN H. PETTBS
We Buy and Sell
VICTORY BONDS
at Current Prices
W. L. McKINNON & CO.
Covernment and Municipal Bonds
McKINNON BUILDING -:• TORONTO
Telephone Adelaide 3870
Increase the Return
on Your Investments
Send for our circular describing
Howard Smitli Paper Mills
Bonds, which are being offered
at II ver\) attractive price
R. A.. Daly & Co.
B.ANK OF TOKONTO BUILDLNG
TORONTO
BONDS
For Sale
Maturity
Province of Ontario 6% 1936
Province of Ontario 6% 1935
Province of Alberta 6% 1936
Province of Saskatchewan... 6% 1936
City of Toronto ,....6% 1925
City of Toronto 6% 1937
Greater Winnipeg Water
District 6% 1951
Town of Walkerton 6 '.. 1 922- 1935
Prices on Request.
W. A. MACKENZIE & CO., Limited
Covernment and Municipal Bonds
Corporation Securities
42 KING STREET WEST
TORONTO - CANADA
36
THE MONETARY TIMES
Volume 66
City of Regina, $300 6 per cent. 15-years straight terra,
for plank sidewalks.
Bond Sales
Chatham, Ont. — An issue of $24,000 6 per cent, deben-
tures has been disposed of locaJly at par.
Shawinigan Falls, Que. — A. E. Ames and Co. have pur-
chased $138,400 5V« per cent. 5-year bonds at a price of 95.916,
which is on a.bout a 6.46 per cent, basis.
St. Boniface, Man. — As mentioned in these columns last
week, the municipality sold its $273,233 6 per cent. 10, 15 and
30-year debentures to the Municipal Debenture Corporation,
of Montreal. The cost to St. Boniface was 7 per cent.
Walkerville, Ont. — There was good competition for the
$95,982 6 per cent. 10 and 20-instalment debentures, the is-
sues going to A. E. Ames and Co. at 95.69, which is on about
a 6.75 per cent, basis. Tenders were as follows: —
A. E. Ames & Co 95.69
C. H. Burgess & Co 95.66
R. C. Matthews & Co 95.62
Geo. Carruthers & Son 95.60
Wood, Gundy & Co 95.59
Windsor, Ont— The city this week disposed of $625,230
6 per cent. 20 and 30-instalment debentures to A. Jarvis
and Co., at a price of 94.846, which is on about a 6.56 per
cent, basis. The following tenders were received: —
A. Jarvis & Co 94.846
NationfJ City Co., Ltd 94.655
Wood, Gundy & Co., and R. C. Matthews & Co. 94.58
Dominion Securities Corp 94.33
A. E. Ames & Co 93.43
Saskatchewan. — The following is a list of debentures
reported sold from April 23 to April 30, 1921: —
School Districts, 8 per cent.— Pretty Valley, $5,000 10-
years; Waterman- Waterbury, Regina. Sharon, $400 10-years;
Geo. Pirefer, Hoath. Parkside, $2,000 20-years, Inverallan,
$1,200 10-years, Manchester, $300; C. C. Cross, Regina.
Vernon, $1,500 10-years; T. A. Mattick, Qu'Appelle. Ches-
ley, $2,000 10-years; City of Prince Albert Sinking Funds.
Rural Telephones, 8 per cent— Flett Springs, $3,500 15-
years; C. C. Cross and Co., Regina. Dilke, $2,000 15-years;
Continental Securities Co. Spruce Home, $31,900 15-years;
W. Shackleton, Prince Albert.
Town of Vonda, $13,000; locally.
REVENUE ESTIMATES HIGHER IN NOVA SCOTIA
Increase of $727,984 in Present Year, Chiefly Obtained from
Corporations, Motor Vehicles and Other Taxes
NOVA SCOTIA'S revenue for the year ended September
30, 1921, was estimated at $4,529,059, an increase of
$727,984 over that for the previous year. The increase
is made up largely from supplementary revenues, which show
an increase of $234,121, and is taxation on banks, insur-
ance companies, corporations, etc. Then there is a sub-
stantial increase in motor vehicle fees of $89,285, and the
revenue from taxation, which includes municipal road tax,
theatres, motor vehicles and income tax on corporations, and
in the total makes the largest single grroup of the several
which constitute the increase — namely, over $500,000.
These figures were placed before the provincial legis-
lature on May 6, in the budget speech of James C. Tory,
treasurer. Mr. Tory gave a history of the revenues since
Confederation. The total raised and given to the province
since that date was $60,000,000. Of this $26,000,000, or 43
per cent, was from federal governemnt subsidies. Revenue
from provincial Crown lands, mines, and railways, was $23,-
000,000 or 38 per cent. Taxation during that time levied
on such things as succession duties, income tax and fees
on corporations, motor vehicle taxes, theatres, municipal road
tax and sundry tax items totalled $6,186,000 or only 9 per
cent, and a small revenue from public services of 8 per cent,
of the total.
It was forty years after Confederation before the re-
venue of Nova Scotia reached a million dollars. Before Con-
federation the revenue was $2,000,000 and during several
years between 1867 and 1900 the revenue of the province
went down to below a half million dollars. During that time
there was practically no taxation in the province and the
public services were starved for want of money. The peo-
ple were not trained in taxation, and the governments were
reluctant, naturally, about imposing taxation.
Expenditures Reviewed
As he had totalled the revenues for the years since Con-
federation so also Mr. Tory described the expenditures. For
education in that time there had been spent in Nova Scotia
$14,000,000, for roads and bridges, $10,000,000, interest on
debt $9,000,000, public relief $8,000,000, this included sana-
toria and hospitals. It was to be seen by this there were
three or four primary items which had absorbed revenues of
the province. The expenditures for 1920 was a total of
$3,893,724, including the expenditure on revenue accounts
of $88,034. Of this amount 25 per cent, was on roads and
bridges; on public relief such as hospitals and sanatoriums,
21 per cent; interest, 16 per cent; education, 14 per cent.,
and agriculture, 3 per cent. The increase of expenditures
was due mainly to the following: Education, total expendi-
ture, $369,241; besides the School Book Bureau $58,060, and
technical education, $93,549. Interest on debentures, $607,-
237. Provincial sanatorium, $286,679, the Victoria General
Hospital, $180,064, and highways, $971,252.
The national obligations to-day were such as staggered
the imagination of financiers. There had been during the
war an incomprehensible increase of taxation upon the peo-
ple. In Canada it was the enormous sum of $253 per capita.
In Great Britain, $758 per head, in France it amounted to
$5,000 per family, or considerably over one thousand dollars
per capita. The United States, of all the powers, was the
lowest, being lower than Canada. Gi'eat Britain had re-
duced her debt last year by £250,000,000, or a billion dollars
in a round sum. These national obligations of Canada had
their bearing upon the financial conditions to be met by
the province.
Mr. Tory did not regard with any pessimism the condi-
tions in Nova Scotia. He thought every member of the"
House should realize the limitations in raising revenue. The
taxing power of the people was limited and he believed the
province would never be able to be more than anything than
consei-vative. He had one fault to find with the members of
the House and that was that every one of them was think-
ing of expenditure, but few thought of the difficulties of
getting money. He urged upon the municipalities the use of
the powers which had been given them to raise money for
the functions of government and public service which had
been allocated to them by the constitution.
Taxes on Corporations
In connection with the supplementary revenue the
greatest increase was with banks and insurance companies,
the banks increasing from $32,000 to $65,000. and the in-
crease with insurance companies had been $36,802. This
Mr. Tory explained, was due to different form of taxation
in an effort to get down to the principle of taxation on
capital. Banks, he said, reasonably agreed to it. It was an
effort to get revenue from those most able to pay for it.
"This was not blind finance, but done in the light of Liberal
principles," declared Mr. Tory. Nova Scotia in regard to
banks and insurance companies was in a disadvantageous
position owing to the majority of these institutions having
their head office in the province of Ontario to which govern-
ment they paid their taxation. Nova Scotia getting no advan-
tage. Something had to be done to equalize this by an im-
position of taxation. The group of resources which pro-
duced the greatest single item of revenue came under taxa-
tion. This produced $501,000 of the increase. Examination
of this group Mr. Tory said would show that such taxation
was not directed against the individual, but against wealth
and companies and corporations.
May 13, 1921
THE MONETARY TIMES
37
$25,000
CITY OF HALIFAX, N.S.
BONDS
Due Jill's I^U 1953
Denominaiions, $1,000
Prinoipal and semi-annual interest pay-
able at Toronto. Montreal, Halifax.
Price : 92.85 and accrued interest
YIELDING G%
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX, N.S.
New Issue
PROVINCE OF ONTARIO
6% BONDS
Due, 1936
Principal and half-yearly interest payable in Canada.
DENOMINATIONS: Sl.OOO
Price 99.50 to Yield 6.05%
BOND DEPARTMENT
The O^ada Trust Coi^vpany
14 King St. E. • - ■ Toronto.
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street • VANCOUVER, B.C.
C, H MACALLAV J 1>. N iLdl-LS, N'o1:h y Public.
X
Waghorn Gwynn & Co., Limited
Stock and Bond Brokers
Financial Insurance, and Real Estate Agents
VANCOUVER
J. A. THOMPSON & CO.
Government and Municipal Securities
Weste
Mun
ipal. School and Saskatchewan Rural Tele-
phone Co. Debentures specialized in.
COURKSPO.NDK.NCB INVITED
Union Bank Building - WINNIPEG
A. J. Pattison Jr. & Co.
Members
Toronto Stock Exchange Montreal Stock Exchange
Specialiata Unlisted Securitiea
lOe BAY STREET
TORONTO
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branchcs-SASKATOON AND CALOARY.
Can,idian Managers
iNVrSTMHNT CORPORATION OF CANADA. LXD.
London Ofticc : 4 Great Winchester St., E.C.
INSURANCE ENGINEER AND BROKER
ALL CLASSES OF INSURANCE WRITTEN
JT„ ...oOB. M.MMOKD • u II. D , N o , MOOSE JAW. Sask.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank Bldg., Edmonton, Alta.
BROOK & ALLISON
Real Estate Loans and Insurance
RENT.AL AGENTS VALUATIONS MADE
REGINA, SASK.
LOUGHEED & TAYLOR, Limited
IMESTME\T SECURITIES
210 Eighth Avenue West
CALGARY ALBERTA
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND ^VAREHOUSE PROPERTIES
REGINA
MAHAN-WESTMAN,
LIMITED
FINANCE insurance''"
REALTY
432 Pender
Street, W., Vancouver, B.C. |
Dr. J. W. .MAHAN
President
J. A
\Vi;ST\lA.\
.ManaRins Dirtctoi
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cable Address, Topeco. Western Ln. and A. B.C.. 5th Edition
CALGARY, CANADA
THE MONETARY TIMES
Volume 66
CORPORATION SECURITIES MARKET
Stock Prices Improve on Canadian Exchanges With the Elim-
ination of Uncertainties — Brompton Offering is
Now Being Made
WITH two uncertainties removed, the Canadian stock
markets this week were able to make a little headway.
The obscurity of Riordon's position had a depressing in-
fluence upon paper stocks and upon all prices in general,
while the ambiguity surrounding Canada Steamships was
the other unsettling factor.
Regarding the latter, the publication of the annual state-
ment and the announcement that the company had made
arrangements with certain London interests to take the pro-
posed issue of $5,000,000 8 per cent., collateral trust deben-
ture stock, gave a certain amount of encouragement. The
question connected with Steamships was whether the com-
pany could continue to pay the dividend or pass it, and re-
tently, when it was understood that there was some difficulty
in raising finances in England, it was currently expected that
if the financing was not done the dividend would be passed,
and that induced a good deal of short selling.
Last week the' directors met, and a notice was sent out
calling a special meeting «of shareholders to approve the
recommendations of the directors and certain by-laws re-
lating to the issue of debenture stock, a circumstance indicat-
ing that the company's financing plans were nearing com-
pletion. This, together with a fairly satisfactory condition
of earnings shown in the annual report, and the substantial
surplus, led to the belief that the preferred dividend was
safe, and the stock moved up.
Riordon's Influence
But the most important development of the week was
the publication of the position of the Riordon Company. The
details were not altogether surprising, as the di'astic decline
of the stock on the exchanges two weeks ago foretold of some
such event, but their announcement eliminated the uncer-
tainty.
The company is closer to bankruptcy than is comfort-
able, and the shareholders are asked to lend their support.
The question was asked whether it would be better to
sacrifice what is now involved in the business than to risk
further amounts, but the directors and those who are in
direct touch with the situation have a great deal of faith
in the enormous resources of the enterprise, and it is felt
that the maturity of the present plans will pat the company
upon its feet again. It is evident to all, however, that the
next few years will call for skilful and conservative handling
of this immense and complex organization. It is expected
that there will be a fair demand this year for sulphite pulp, of
which the Riordon Company is the largest producer.
Budget Has Little Effect
As far as the budget was concerned, the market was
affected but little. National Brewei'ies responded to the re-
moval of the thirty per cent, tax on beer, but no other
movements were recorded. As far as the whole market was
concerned the budget was not displeasing. The abolishment
of the business profits tax was considered a favorable factor.
Trading for the week resulted in a turnover of listed
stocks on the Montreal exchange of 76,164 shares, as com-
pared with 46,771 in the previous week, while in Toronto
the figure was 13,963, compared with 15,921. Bonds changed
hands to the extent of $1,520,500 in Montreal, as against
$1,356,809, while the turnover in Toronto was $1,328,850,
compared with 1,315,750 previously.
Greenshields and Co., Hanson Bros., and R. A. Daly
and Co., are now making public offering of the unsold balance
of $2,500,000 8 per cent. 20-year convertible mortgage bonds
of the Brompton Pulp and Paper Co., Ltd., at 99 and accrued
interest, to yield 8.10 per cent.
The securities are payable in Canada only, ai'e in de-
nominations of $1,000, $500 and $100, and can be registered
as to principal only. They are callable in whole or in part
on any interest date at the option of the company at 110 and
accrued interest to May 1, 1931, provided holders be given
90 days' notice in which to exercise conversion privilege;
after that date at 105 to May 1, 1936; thereafter at par.
The bonds are convertible at any time until May 1,
1931, at the option of the holder, into common stock on the
basis of 20 shares of common stock for each $1,000 par
value of bonds. They are secured by a direct mortgage and
charge on all fixed assets and properties of the company,
and on all securities now owned or hereafter acquired by it,
includinn- entire common stock of the Groveton Pulp and
Paper Co. and the Claremont Paper Co., subject only to
$3,413,000 underlying bonds.
As at January 1 last, plant and property valuations,
after deducting depreciation reserves, was $14,567,000, and
net quick assets were $3,586,000.
National Brick Will Reorganize
The National Brick Co., of Laprairie, Que., has issued
a circular to the bond and shareholders of the company, tell-
ing of a plan for the I'eorganization of the company. Two
new by-laws will be submitted to a special meeting to be
held June 15. The first by-la',v will effect an increase in the
capital stock of the company from $2,000,000 to $5,500,000
by the issuance of 35,000 shares of $100 par value 7 per
cent, cumulative preferred shares, dividends being cumula-
tive from May 1, 1921. This stock shall rank in a wind-
ing up, both as regards capital and dividend, in priority to
the common shares. Preferred shareholders shall have the
right to elect a majority of the directors, but not minority
directors. Bondholders will convert their bonds presently
outstanding into 7 per cent, cumulative preferred stock.
The second by-law is to create an issue of 6 per cent.
30-year first mortgage bonds to an amount not exceeding
$750,000, said bonds to be secured by the trust deed of
hypothec mortgage and pledge upon the company's properties,
the deed to be in favor of the Quebec Savings and Trust
Co., as trustees for the bondholders. A special meeting of
bondholders is called for 3 p.m. June 15, and of shareholders
at 2 p.m.
UNLISTED SECURITIES
Qjotattons furnished i
& Co., Toronto
Abbey Salts
Alta. Pac. Grain... com.
" '■ "... .pref.
B'ndr'm-Henderson pref.
British Amer. Assurance
British American Oil.
Burns. P. 1st MtRe. 6'i
Can.Crocker-Wheiler.pf.
Can. Machinery. . . pref.
Can. Oil com.
Can. Salt 6's.
Can. Westinghouse..
Can. Woollens.. :...i
" " pref.
Cockshutt Plow pref. 7%
CoUingwoodShipb'dg.B's
Cuban Can. Sugar, pref
Bid
Ask
.20
.45
125
142
77
84.50
90
93.50
7
m.M
31
32
9;t.,iO
99
70
52
73
82
63
89
9S
103.50
108.50
IS
23
60
70 •
54
58.50
90
15
18
Davies William 6's
Dominion Fire
Pom. lron&Steel5'sI939
Dom. Power com,
pref.
Dunlop Tire pref.
■■ 6-s.
Eastern Theatres. . .com.
Famous Players ...pref.
Ooodyear Tire. ...7% pfd.
G'rd'n.Ir'nside&FareS's
Gunns. Limited pref
Harris Abattoir 6's
Home Bank
International Milling.6's.
Imperial Oil
King Edward Hotel.com.
Bid
Ask
95
99
45
64
70
26
88
91
86
■ 92
89
12
14.75
78
46
52
55
40
SI
89
95
98
100.50
88
105
110
64
69
74
80
Loew's, Buffalo com.
" London com.
Manufacturers Life
Marconi Wireless ^
Massey-Harris
Merchants Fire
Mexican Nor. Power. .5's
Morrow Screw 6*s
Murray-Kay pref.
National Life
Neilson. Wm 6's.
North American Pulp.-..
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Peoples Loan .& Savings.
Provinciale Bank
Riordon. .com.lnewstk.J
..pref .(new stk.)
Bid
Ask
3
4.50
3. SO
5.30
170
200
1
2
93
37
8
12
83
90
59
66
150
86
91
3.25
3.75
75
80
85
90
80
122
124.50
3.75
27
4.50
30
R.Simpson pfd.
Southern Can. Pow. pref,
Sterling Bank
Sterling Coal com,
Toronto Paper 6's,
Toronto Power. S's ( 1924)
Trust &Guar
United Cigar Storescom
.pref.
Western Assurance.
western Grocers. . .pref,
WhalenPulp com
•■ ...7% Deb,
May 13, 1921 THE MONETARY TIMES
NEW ISSUE $2,500,000
Brompton Pulp & Paper Company
LIMITED
8% Convertible Twenty-year Mortgage Bonds
^t.;!!^^c^.'-!-M-^«^-a^r.r,^. ^n^^«^5^"^:^.^:; ^^^.^^^.w^C^:?^
roiinon Bonds of ^1000 $S00 and SlOO denominations, with privilege of reKistration as to principal only. Callable in whole or
- Dart oranv interest date at "he option of the Company at 110 and accrued interest to May 1st. 1931 provided holders be
''J''^L°"^*.".* J. "L lu:X ,,, exercise conversion priviletre: after that date at 105 to May 1st. 1936; thereafter at par.
90 days' notice
Trustee— Quebec Savings and Trust Compan
common Stock , No par value) ^■''•«'«' '— ,. 'Siflir^ZZ i "•««<'•<'<'»
CAPITALIZATION
Authorized Outstanding
210.000 shaies 140.000 shares I
As per Balance Sheet (
Camulative Preferred Stock .V ;i;;- ' ' -yV.V.- «•'»"'•>""'
First Consolidated and General Mortgage Bond-x. due 1927, 1935 and 1939,
including Bond, of (iroveton Pulp & Paper Co.. Ltd.. \il'All
Convertible (ieneral Mortgage Bonds (this issue) due 1941 3.000.000
The Bonds of this ixsue are convertible at any time until May 1st. 1931. at the option of the holde
3.413.000
2.500.000
For detailed informaliun reiiardinu the Company, ite refer to a teller from /•'. N. McCrca, I'nMdenI of the Com paiw. from lehieh he
»uinniarizen as folloieit:
1. Brompum Pulp and Paper Company. Limited, is one of the largest Canadian companies producing miscellaneous pulp and
paper products, including newsprint paper, kraft and fibre paper, boxboard. sulphite, sulphate and groundwood pulp. The busi-
ness has been in successful operation for many years.
2. This issue is for the purpose of partly reimbursing the Company for expenditures on Capital account made in recent years
largely out of earnings, and aggregating approximately SG.000.000.
3 Bonds will be secure<l by a direct mortgage and charge on all the fixed assets and properties of the Company, and on
all securities now owned or hereafter acquired by it. including entire common stock of the Grcveton Pulp and Paper Company
and the Claremont Paper Company, subject only to 13.113.000 underlying bonds listed above.
The issue of remaining $!>00.000 in Treasury is restricted to 50' i of additional Capital expenditure, and provided net earn-
ings for preceiling year have been twice the amount necessary for all Bond interest.
4. An annual cumulative sinking fund of approximately 2'j^r of bonds outstanding will be commenced. May 1st. 1923. sum-
cient to retire entire issue at maturity irrespective of bonds which may be cancelled through conversion.
5. Under terms of trust deed Company is required to maintain surplus of current assets over current liabilities of not less
than $2,000,000 during the life of these bonds. .
G. Freehold and leasehold timber areas of the Company and subsidiaries aggregate 1.190 square miles estimated to conUin
7.000.000 cords pulpwood and a very large quantity of saw logs. These reserves are estimated sufficient for all future opera-
tions at present capacity. They can be further conserved, as in the past, by purchases from individuals.
7. Annual production of the Company's Mills at East Angus. P.Q.. Bromptonville. P.Q., Claremont, N.H.. and Groveton.
N.H.. in net tonnage for sale, is as follows; —
Tons
Groundwood Pulp IB.OOO
Unbleached Sulphite Pulp S-OOO
Newsprint Paper 34,000
Kraft and Fibre Paper 61.000
Box Board .' ._. ^ 15.000
Total Annual production for sale 123.000
Lumber Production, ft. b.m 10.000.000
8. Water Powers— 22.150 H.P. maximum developed, and 12.000 RP.. capable of reasonably economical development.
9. Total assets, on which these Bonds are a charge, as per combined balance sheet of these Companies, at January 1st last.
after giving effect to present financing amount as follows; —
Plant and Property Valuations, after deducting Depreciation Reserves $1'<.B67.000
Net Quick Assets 3.586.000
Total Assets $18,153,000
Total Bonds Outstanding ? 6.913.000
10. Net earnings after interest, taxes, and depreciation for the last (onr years have averaged $1,291,000 as against bond
interest, including interest on this issue, of $405,000. or over three times interest requirements on outstanding bonds, including
present issue.
Net after depreciation and taxes for last fiscal year was $2,314,000. or over five times all Bond interest requirements.
A large part of this ij«ue having been sold we offer the unsold balance ai the price of
99 AND ACCRUED INTEREST, TO YIELD 8.10%.
Greenshields & Co.
17 St. John Street, Montreal.
11 King Street East. Central Chambers,
TORONTO OTTAWA
Hanson Bros. R. A. Daly & Co.
160 St James Street. ' 63 Sparks Street, Bank of Toronto Building^.
MONTREAL OTTAWA TORONTO. Canada 561
40
THE MONETARY TIMES
Volume 66
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
MOKTKKAL-Wrck EiMled Klii.r nth.
icMl Fljrurii Miid.llf.l l.y IU1;N1:iT* CO., inenibci-s Montreal
stn.k K\i liimm-. Montreal, I
Siwcks
Abitibi P. HP
• pfd
Asbestos Corp
pfd
Anics-Holden
pfd
Atlantic Sugar
Bell Telephone
Brazilian T.L.& Power
B.C. Fish
Brompton Pulp & P..
Canada Cement
...pfd
Canadian Car.
'• ....pfd.
Can. Con
Can. Cottons
Canadian Gen. Elec...
Can. Steamship
" ■• pfd,
•■. •• Deb,
" " ..Vot. Trust
Carriage Fact
Con. Mining & Smel. ..
Del. Rys
Dom. Canners
Dominion Bridge
Dom. Coal pfd
Dotiinion Glass
•• ...pfd,
Dom . Steel Corp
..pfd.
Dominion Textile
■■ ...pfd.
Howard Smith
■• ....pfd.
Illinois Tract
•■ pfd,
Lalteof the Woods,,
Lau
Lyall
Macdonald Co
Mont- Cottons pfd
Montreal Power.
■' ..Deb.
Telegraph. . .
National Breweries....
Ogilvie
•• pfd,
OttMwa
Penmans
Price Bros
Quebec Ry. L. H.&P..
Riordan PulpS P
•• ..pfd
ShawiniganVV.&P ...
St. Maurice
Sher.-Wms
St. Lawreni
Spanish Ri'
..pfd.
.pfd
Steel Co. of Canada...
•• •■ ■• pfd
Toolie Bros
Toronto Ry
Tuckett..
Wabasso
Wayagamack P. & P
Winnipeg Ry
Ranks
Commerce
Hamilton
Hochelags
Merchants
Molsons
Montreal
Nationale
Nova Scotia
Royal
Standard
Toronto
Union
Boiuls
Asbestos Corp
Bell Telephone Co..
Can. Cement
Can. Cottons
Can Loco
Can. Rubber
Cedars Rapids Mf'g
City Mont. Dec. 6's. 1922
'■ MayS's, 1923
" Sept.6's.l923
Dom. Can.W. Loan. 1925
1931
1937
Victory Bonds, 1924 —
1934....
1922....
1927....
1»S7
1923....
1933...
Sales Open High Low Close
11319
9HI6
8129
24.521
59237
3842S
4313
11790
38005
36353
ni
50 92.75
96.75
25 96§
* 94.80
98.85
25 97-75
S 99.25
96.75 97.40
MUNTKEAL-ConMnueii.
BondK
Dom. Canners.
Dom. Cottons .
Dom. Coal
Dom. Iron
Dom. Textile ..
Lake of Wm)ds
Mont.Tram«;i
National Breu.
Ogilvie Flour
Ontario Steel .
Penmans
Sales Open High Low
Price Br
Quebec Ry.L. H.&P..
KiodeJaniern
Riordon
Sherwin-Williams. .
Steel of Can
Wayagamack P. & P. .
Winnipeg Elec
1000 97J
8000 92}
23000] 77
4000 803
TOICONTO-Wcek Endpd .llay lllli.
.•stocks
Atlantic Sugar
Ames-Holden pref.
Abitibi
Bell Telephone
Brazilian Traction. . .
B.C. Fish
Burt. F. N
...pfd.
Sales Open High Li
20 31
10 21j
.505 35
46 105
•_'SIli 30
15; 40
llOi 103
Bn
Canada Cement .
Canners
pfd
■ pfd'
Canadian Pacific R
Can. Car &F pfd.
Can. Gen. Elec
'. ...pfd,
Canada Steamship....
pfd.
City Dairy pfd.
Con. Gas
Coniagas
Dome
Duluth
Loco pfd.
MacUay Companies
■' ...pfd.
Maple Leaf
'■ pfd.
Monarch pfd-
N.S. Car
Nioissing
Ont. S. Pro
Pac. Burt pfd.
Porto Rico
Prov. Paper
Quebec R.L.H. & P..
Riordon.. .
Tooke.,
Toronto Ky. .
Trethewcy,
Tucketts
Twin City....
Winnipeg Ele
Rniik.«
Commerce
Dominion
Hamilton
Imperial
Merchants . . . .
Montreal .......
Nova Scotia. . .
Royal
Standard
Toronto
Union
Dom. Sa\'
Ham Prov
Real Estate
Toronto Gen. Trusts.
Union Trust
K4nuls
Can. Bread
Canners
Penmans
Quebec
Rio. Jan. T.. L. & P..
1500
1000
12800
TORONTO— ConHnueti
War Loans
Sales
Open
95
High
Low
Close
Dom. Can.W.Loan. 1925
47500
95
94.75
94.90
1931
5300
93.15
93.25
92.50
93.15
1937
3500
96.75
96.75
96.50
96.75
Victory Loan 1922 ....
235200
98.35
99.05
98.35
98.50
1923 ....
82300
98.45
98 45
97.70
98.10
1927 ....
IOI50
98.15
98.25
97.80
98
1937 ....
121900
99
99.45
98,90
99.30
1933 ....
314750
97.60
97.75
96 90
97.30
1924 ...
86700
96.90
9B.90
95
96.75
1934 ....
344750
95
95,05
94.75
95
WIKMPEO-
Week envied .1la.v
:tii.
Sales
Open
High
99
98i
96|
97|
99
979
941
94i
97
Low
988
98
96g
97*
80
965
94g
94j
93
96i
Close
Victory Loan 1922
•■ 1923
■• 1924
" 1927
■' 1937
'■ 1933
■■ 1934
War Loan 1925
•■ 1931
■' 1937
Great West Perm
109250
18500
3700
6700
12500
16950
38400
1000
3100
1400
98g
98
963
97j
983
96|
941
941
93
96i
99
98.10
96.40
97.611
80
97.35
94.65
943
93
10
100
ii7
340
117
340
117
340
ii7
340
Nova Scotia pfd,
Standard Trust
NEW YORK— Week ended Way ith.
Canadian Pacific
Canada Southern
Nova Scotia S. &Coal,
Granby Consolidated.,
5J% 1921
5% 1926
5^% 1929
5% 1931
Ontario Silver Mining.
Sales Open High Low Close
25700
3500
17000
46000
63500
51000
1500
LONUON. Eug.— Week ended Apr. SOth.
4iOv*l. A Aliin.
■ 3%1
4% 1940-60
.... 4% 1920-25
Calgary 4i% deb
Edmonton 5% bds. 23-53
,5% debs....
Manitoba 4% deb. 1928
Moo.se Jaw 5% debs...,
Montreal 4i% Reg
4% cons. deb
N. Brunswick 4% Reg
Newfoundland 3S% bds
Quebec 4% deb. 1888
Sask.4%
Saskatoon 5%
St. John 4% debs ,
Toronto 4%
4*% debs , .
Vanc'ver 4% cons. •,SO-i
Victoria 4% cons
■• 3%cons
3i% 1923
Sales Open High Low Clo
44%
;', , 4i% deb. -20-25
5h% cons.. . .
Winnipeg 4i% 1943-63
ICnllna.Ts
Can. Nor. 4% deb
■■ ■• 4%cons.deb
" Pac. 4% deb.
Can. Pac
" 4% deb,
" 4% pfd.
G.T.P. Br. 4% bd 1939.
G.T.P.4%deb
G.T.P. 4% 1955
Gr. Trunk... 4% guar.
Gr. Trunk5% 1st. pfd..
Gr. Trunk 5% 2nd pfd..
Gr. Trunk 4% 3rd pfd,.
Gr. Trunk 4% cons
Gr. Tr. West. 5% deb..
Ont. & Quebec 5% deb.
P.Gt. East.4j%deb.'42
Ind., Flu., Ele.
Can. Car 6 fc bds
Can. Cement 6Z bds...
Can. West Lumber 5%
Can. Gen. Elec
,'inigan \\'ater. . . .
Bk. of Commerce
Bank Montreal
Shav
4Si
791
45i
82i
109i
■4.5}'
Mav 13, 1921
THE MONETARY TIMES
SASKATOON
Saskatchewan's University and Distributing City
UNIVERSITY BRIDGE, CONSTRUCTED IN REINFORCED CONCRETE
{Photograph taken from i'niocrsitv Campui).
Saskatoon is Saskatchewan's Premier City for Education and as a Distributing Centre
POPULATION: 1907 3,011 1908 25,000
NET ASSESSMENT for Taxation for 1921
1921 30,000
$27,854,489.00.
FINANCES OF CITY ON SOUND BASIS
TOTAL DEBT, including Local Improvement Debentures. March 31st. 1921 $9,045,891.00
Less Water Works Debentures $ 863.439.32
'■ Electric Light ■• 1.629.912.10
" Street Railway " 827,035.90
'■ Local Improvement " 1 .982,992.5 7
Net General Debt
Less Sinking Fund in respect to Net General Debt $742,754.36
Debentures Redeemed 61.172.82
Net Debenture Debt
No Treasury Bills or Short Term Debentures outstanding
5.303,379.89
$3,742,511.11
803.927.18
$2,938,583.93
SINKING FUND December 31st, 1920:
Balance at Bank $ 141 ,404. 1 3
Investments $ 1,637,827.22
Surplus Earnings — Amount earned over the amount required .... $ 66,063.56
PUBLIC UTILITIES show Surplus Revenue over Expenditure for year ending December
31st, 1920, of $10,010. 16 after paying all charges including operat-
ing expenses, interest, sinking fund and depreciation.
Total DEPRECIATION RESERVE as at December 31st, 1920, $312,159.02.
BANK LOAN ON CURRENT ACCOUNT as at March 31st. 1921, $564,200.00.
A. MacG. YOUNG, Mayor.
ANDREW LESLIE, City Commissioner.
THE MONETARY. TIMES
Volume 66
COKI'OKATION FINANCE
Canada Steamship Lines Had Larger Gross but Smaller Net
Earnings — Winnipeg Railway Position Improving
Winnipeg Electric Railway Co. — For the first quarter of
1921 net earnings show an increase of 14.4 per cent, over the
same period in 1920. The figures are as follows: —
1921. Increase. Per cent.
Gross $1,487,578 $86,953 6.2
Operating and taxes 1,123,664 76,593 7.1
$ 363,914
Fixed charges, interest, etc. . 182,714
$10,359
*12,479
3.
6.4
$ 181,199 $22,839 14.4
*Decrease.
Canada Steamship Lines, Ltd. — The annual financial
statement of the company has at last made its appearance,
showing a fairly satisfactory position in regard to earnings,
and an enlarged surplus. Gross revenue was $19,871,461, as
against $15,039,277 in 1919 and $13,878,224 in 1918. After
addition of other income, deduction of operating expense and
all charges, including interest and reserves and preferred
dividends, net earnings available on the common stock
amounted to $1,057,772, as compared with $1,471,679 in 1919
and $1,358,741 in 1918. After deduction of common dividends
and inclusion of profits from sale of assets, surplus amounted
to $1,846,236, as compared with $1,765,280 in 1919 and $2,-
634.877 in 1918. Addition of previous surplus balance brings
total balance at profit and loss account at the end of the year
to $8,611,147, as compared with $6,774,911 in 1919 and $5,-
009,631 in 1918.
Net earnings for 1920 were equivalent to 8.81 per cent,
earned on the outstanding common capitalization of $12,-
000,000, as compared with 12.26 per cent, in 1919 and 13.22
per cent, in 1918.
As previously forecasted, the working capital position
of the company has been somewhat impaired. Net working
capital as at the end of 1920 was $469,694, as compared with
$929,299 in 1919. Other changes in the balance sheet are
illustrated by the fcllowing comparisons: —
1920. 1919.
Vessels $27,308,960 $25,697,823
Real estate 6,685,064 6,351,017
Current assets 8,017,693 5,866,873
Investments 1,245,930 551,700
Total assets 48,894,394 44,557,179
Funded debt 6,501,483 7,979,619
Cun-ent liabilities 7,547,999 4,937,574
Reserves 175,776 142,443
Canadian Cottons, Limited. — Although business fell off
in the last six months of the fiscal year, which ended March
31 last, total business done was above the banner year of
1919-20, sales reaching $11,231,102, against $11,148,438 in
that year. With the inclusion of other amounts a total of
$11,496,580 was reached, against $11,290,116 the preceding
year. The cost of raw material, manufacturing cost, market-
ing of products, repairs and maintenance, however, showed a
marked increase, amounting to $10,817,112 against $9,709,071
in 1919-20. This left profits at $679,468, against $1,581,045
in 1919-20, and $1,365,103 the previous year. Rentals and in-
vestments showed a decrease, bond interest an increase, and
after preferred dividends the amount left for common divi-
dends was $459,507, against $1,441,093 the preceding year.
The earnings statement for the year shows that the
company earned 16.88 per cent, on common stock before de-
preciation and 9.6 per cent, after depreciation of $200,000.
This, compared with 23.24 per cent, in the preceding year,
which was a record in the company's history.
The president, C. R. Hosmer, in his annual report, states
that the profits for the first half of the year were satisfactory,
but those of the last six months were seriously aff'ected by
the severe and wide depression which existed in business.
(Continued on page iS)
City of Sarnia Debentures
TENDERS WANTED
Tenders will be I'eceived by the undersigned up till 3
p.hi., Tuesday, 17th May, for the following equal annual in-
stalment coupon debentures:
$65,180.16 Pavement 10-yrs. 6%. Dated Dec. 31, 1920.
86,147.68 Pavements 10-yrs. 61/2%. Dated Dec. 31, 1920.
38,107.91 Sidewalks and Sewers 5-yrs. 61/2%. Dated Jan. 1,
1921.
Tenders must be made for each block separately.
Accrued interest will be added to price on delivery.
Delivery and payment to be made at Sarnia.
Interest payable annually.
The bonds will be in denominations of $1,000, as far as
possible.
The lowest or any tender not necessarily accepted.
P. A. BLACKBURN,
City Treasurer.
S&rnia, Ont. 550
TOWN OF PEMBROKE, ONT.
DEBENTURES FOR SALE
Sealed tenders will be received by the undersigned up
to 3 p.m., Wednesday, May 25th, 1921, for the following
debentures: —
$31,369.90 of Local Improvement 10-year 6%.
$14,696.82 for Waterworks purposes 20-year 6r'c.
$34,257.78 for Waterworks purposes 30-year 6%.
All to be repayable in equal annual instalments of prin-
cipal and interest.
Highest or any tender not necessarily accepted.
S. L. BIGGS,
Pembroke, Ont. Clerk-Treasurer. 558
Condensed Advertisements
" Positions Wanted." 3c per word: a
5c. per word. Minimum charge for
per insertion. All condensed adver
style. Condensed advertisements,
charged for them, are p:iyahle in ad\'
sed advertisement, 65c.
WANTED
GUARANTEE AND CASUALTY DEPARTMENT MAN-
AGER for well-established Canadian Company, Head Office,
Winnipeg, entering above business. Must have thorough
Head Office knowledge of various classes, including good
Underwriting experience. State age, experience and refer-
ences. Apply Box 409, Monetary Times, Toronto.
THE MOUNT ROYAL ASSURANCE COMPANY re-
quires the services of an Inspector for the Province of On-
tario. Excellent prospects for advancement. Must be ex-
perienced, and have good connection. Apply stating experi-
ence and salary expected to the General Manager, Mont-
real. 557
May 13, 1921
THE MONETARY TIMES
43
DIVIDENDS AND NOTICES
BANK OF MONTREAL
THE ROYAL BANK OF CANADA
Notice is hereby given that a DIVIDEND of THREE per
cent., upon the paid-up Capital Stocli of this Institution, has
been declared for the current quarter, payable on and after
WEDNESDAY, the FIRST DAY OF JUNE next, to Share-
holders of record of 30th April, 1921.
By order of the Board,
FREDERICK WILLIAMS-TAYLOR,
General Manager.
Montreal, 22nd April, 1921. 542
BARCELONA TRACTION, LIGHT AND POWER
COMPANY, LIMITED
(Incorporated Under the Laws of the Dominion of Canada)
To the Holders of the 7'r Prior Lien "A" Bonds.
NOTICE IS HEREBY GIVEN that the Coupon Number
12, in respect of the interest due and payable on the 1st
June, 1921, on the 7'f Prior Lien "A" Bonds, (Sterling
Issue), of the Company will be paid on and after the 1st
June, 1921, at the Banl< of Scotland, 30 Bishopsgate, London,
England, and at the Canadian Bank of Commerce, 23 King
St. West, Toronto. Payment will be made in Toronto in
Canadian Currency at the current rate of exchange for the
day upon which such Coupons are presented for payment.
Dated this 12th day of May, 1921.
For BARCELONA TRACTION, LIGHT AND
POWER COMPANY, LTD.,
R. H. MERRY, Secretary. 560
DIVIDEND NO. 135
Notice is hereby given that a Dividend of Three per
cent, (being at the rate of twelve per cent, per annum) upon
the paid-up capital stock of this bank has been declared for
the current quarter, and will be payable at the bank and its
branches on and after Wednesday, the first day of June next,
to shareholders of record at the close of business on the 14th
day of May.
By order of the Board,
Montreal, Que., April 15. 1921.
C. E. NEILL,
General Manager.
535
THE CANADIAN BANK OF COMMERCE
Dividend No. 137
Notice is hereby given that a dividend of Three per cent,
upon the capital stock of this Bank, being at the rate of
twelve per cent, per annum, has been declared for the quarter
ending 31st May next, and that the same will be payable at
the Bank and its Branches, on and after Wednesday, 1st
June, 1921. The transfer books of the Bank will be closed
from the 17th May to 31st May next, both days inclusive.
By Order of the Board,
Toronto, 22nd April, 1921.
JOHN AIRD,
General Manager.
545
THE MERCHANTS BANK OF CANADA
ANNUAL MEETING
BARCELONA TRACTION, LIGHT AND POWER
COMPANY, LIMITED
(Incorporated Inder the Laws of the Dominion of Canada)
To the Holders of SVi^r First Mortgage 50-Year Bonds.
NOTICE IS HEREBY GIVEN that in accordance with
the reorganization scheme approved at the meeting of the
holders of the above bonds, held on the 19th December, 1918,
IC will be paid at the Bank of Scotland, 30 Bishopsgate,
London, England, and at the Canadian Bank of Commerce, 23
King St. West, Toronto, on or after 1st June, 1921, in full
discharge of the half-year's interest due 1st June, 1921,
against surrender of Coupon No. 19.
Coupons of the face value of £0: 10: 0 will accordingly
entitle holders to receive £0:4:0, and coupons of the face
value of £2: 10: 0 will entitle holders to receive £1:0:0. Pay-
ment will be made in Toronto in Canadian Currency at the
current rate of exchange for the day upon which such
coupons are presented for payment.
Dated this 12th day of May, 1921.
For BARCELONA TRACTION, LIGHT AND
POWER COMPANY, LTD.,
R. H. MERRY, Secretary. 559
( OKPOKATION FINA.XtE
(Coyitinued from page J,2)
The statement is further made that the inventories of all de-
scriptions were marked down to current prices; in some
cases the value of cotton goods, such as the company pro-
The -Annual General Meeting of Shareholders for the
election of Directors and other general business of the Bank,
will be held at the Banking House, in the City of Montreal,
on Wednesday, the first day of June next. Chair will be
taken at 12 o'clock, noon.
By Order of the Board.
D. C. MACAROW,
General Manager.
Montreal, 26th .April, 1921. 553
THE OGILVIE FLOUR MILLS COMPANY, LIMITED
DIVIDEND NOTICE
Notice is hereby given that a quarterly dividend of one and
three-quarters per cent, has been declared on the Preferred
Stock of The Ogilvie Flour Mills Company, Limited, payable
Wednesday, the first day of June, 1921, to shareholders of
record at the close of business Thursday, the nineteenth day
of May. 1921.
By Order of the Board.
G. A. MORRIS,
Secretary-Treasurer.
Montreal, May 6th, 1921. 554
duces, fell over .")0 per cent. It is understood that large and
important enlargements have been made to the company's
various mills and also to the valuable waterpowers owned by
the company, which will increase their capacity and efficiency,
thereby making for substantial decrease in the cost of
operation.
THE MONETARY TIMES
Volume 66
AN ADVERSE BALANCE OF $51,000,000
RECENT FIRES
Siirh was the Result of Canada's Trade Last Year — Our
Imports from the United States Were in Excess of
Our Exports by $314,000,000
ASl'iVIMARY of trade of Canada for the fiscal year ended
March 31, 1921, prepared by the Dominion Bureau of
Statistics, indicates that there was an adverse balance of
about $51,000,000. This may see unfavorable in the light of
the large balances accumulated to our credit during the war
years, but by going back a few years farther it will be seen
that an adverse trade balance, as far as Canada is concerned,
is not a new event.
For instance, in the period of 1905-13, the Dominion's
trade resulted in a debit balance of about $1,141,000,000, and
in the two years following the figures were $187,000,000 and
$46,000,000. respectively. From 1916-20, howevei-, there was
a turn in our trade, and large balances were built up in our
favor, the figure reaching as high as $578,000,000 in 1918.
Two outstanding features of last year's trade are that
our exports to the United Kingdom took a decided drop, and
that our imports from there increased largely. Canada's sales
to Britain are still far in excess of the purchases, however.
Imports from the United States exceeded exports to that
country by about $314,000,000, but here again there is need
for comparison to show that the position of the Dominion
in this regard is better than it has been in the past. In 1917
and 1918 there were adverse balances of 384 and 374 mil-
lions, respectively, while in 1920 our purchases from across
the border exceeded our sales by $338,000,000.
The trade relation of Canada with other countries is
illustrated by the following comparisons —
Twelve Months ending March
1919
Imports for Consumption $
Dutiable Goods 526,494,658
Free Goods i 393,217.047
Total imports (mds
Duty collected
Total exports (mdse.)
Imports by Countrie
United Kingdom.
Australia
British East Indies
British Guiana
British South Africa .
British West Indies...
Hong Kong
Newfoundland
New Zealand -.
Other British Empire .
Argentine Republii:
Belgium
Brazil
China
Cuba
France
Or
Italy
Japan
Netherlands
United States
Other Foreign Countries.
Exports by Coun
(Canadian Produci
United Kingdom
Australia
British East Indies
British Guiana
British South Africa
British West Indies
Hong Kong
Newfoundland
New Zealand
Other British Empire....
Argentine Republic
Belgium
Brazil
China
Cuba .
France
Greece
Italy
Japan
Netherlands
United States
Other Foreign Countries .
73,035,118
4.963,446
15,223.434
6.747,072
1.300.259
8.437,825
2,121.909
3.098.834
7,855,436
888.207
1.139.267
6.270
1.156,332
1,954.466
3.040,953
3,632,900
.33
555.112
13.618,122
495,409
750,203,024
20.238,277
540,750,977
14,019,629
3,831,741
2,646.169
11.992,135
10,200,582
995,116
11,325,235
6.227,892
3.170,313
4,603.130
950.318
4,088,534
2,856,933
5,035.975
96,103.142
16.902
13,181.514
12,24 5.439
198,985
454,873,170
17,129.975
1.286,658.709
126 362.631
1.371,775
16.236.412
7.412,931
735.948
12.114.790
3,208.836
2.146,414
3,494 600
. 1,267,322
3,402,5,54
911.407
1 ,973,768
1.205.229
17.585,528
10.630,865
729,830
999.040
13,637,287
2,266,169
801.097,318
.35,737.469
489,152.637
11,415,623
6762,259
3.109.381
8,649.756
10.869.276
1.343.867
16.175,443
6.987.008
7.322.753
6,126.457
28.463,855
2.703,488
6,665.805
6.329.783
61.108.693
29,588,984
I6,959„557
7,732,514
5,653,218
464,028 183
42,343.558
213,910,988
791,980
14.241.220
9.088.567
146.798
14,833,746
3,516,760
2,886,203
4.219,965
2,241,162
2.403,938
4,660,252
2.151,066
1,888,521
30,743,239
19,006,902
817.157
1,745,330
11,359,003
4,231,552
856,613,430
38,627.270
3,594,118
14,648,879
13.030,225
2,000,825
16.695.426
11.873,000
4,281.814
8,172,108
40.252,487
2,835,191
4,906,570
6,573,768
27,42S,?08
20,834,577
57,758,343
6,414.920
20,208,418
542,304.456
48.003.953
Loss For Week Totals $939,000, Compared With $377,700 Last
Week — Town of Maxville, Ont., Suffered Heaviest Loss
Aylmer, Que. — May 5 — Shingle mill, owned by R. H,
Wright. Loss, $5,000. "
Bolton, Ont. — May 9 — Town hall and several stores.
Loss, $20,000.
Breakeyville, Que. — May 7 — Store of Mr. Laterreur and
residence of Mr. Juveny.
Douglastown, N.B. — May 9 — Residence of Willis Mac-
Kenzie. Two fatalities.
Exeter, Ont.— May 9— Plant of Exeter Flax Co. Loss,
$50,000.
Fort William, Ont. — May 9 — Home and farm building of
Sam Laughton, O'Connor township.
Goderich, Ont.— May 3— Plant of the National Shipbuild-
ing Co. on Maitland St. LosS; $100,000; insurance, $75,000.
Laforest, Ont. — May 10 — Marshay Lumber Co.'s ya>rd.
Loss, $200,000. Cause, forest fires.
Maxville, Ont. — May 8 — Two blocks of the business sec-
tion. Loss, $300,000. The losses are as follows: —
Loss. Insurance.
Town Hall $20,000 $5,000
Hugh McLean Business Block 35,000 5,000
Hydro-Electric Plant 7,000 3,000
King George Hotel 20,000
Thos. Merkley's barber shop 500 200
Gordon Empey's residence 3,000 1,000
Dr. Wm. McDiarmid's home 4,000 1,000
Bank of Hochelaga 6,000 2,000
Household property of Mrs. Philip
Trangeau, in the bank 500
Hugh Christy's general store 20,000 3,500
Dr. A. T. Morrow's dental parlors slight-
ly damaged
Samuel Bingwell's residence 5,000 2,000
Wm. St. John's residence 3,000 1,500
P. Thauvette's residence 3,500 1,500
Stanley Winter's Shoe Store 4,000 1,500
J. S. Livingstone (fixtures) 1,500
Donald Duperron's restaurant 2,400 5,000
Campbell's general store 5,000 1,500
Montreal, Que. — May 6 — Premises of Liberty White Wear
Mfg. Co., 1818 St. Lawrence St. Loss, $15,000. ,
May 4 — Dry goods store and three residence, at corner
of Beaubien and Alma Sts. Loss, $55,000.
New Waterford, N.S. — May 1 — Rukasin Building on
Polummer Ave.
Pickering, Ont. — May 5 — Pickering Flax Mill, operated
by John Rose.
Queenston, Ont. — May 7 — Hydro power house. Loss,
$50,000.
St. Boniface, Que. — May 5 — The parish church, Gerbeault
Hotel, Dugre Bakery, Boucher store and four private resi-
dences. Loss, $100,000.
St. Neree de Bellechasse. — May 7 — Sawmill of Messrs.
Geo. Therrien and Jos. Dumont. Loss, $15,000; insurance,
$7,000.
Toronto, Ont. — May 11 — Building, occupied by Reliable
Furniture Co., 36 Queen St. E. Loss, $2,500. Carpenter shop
of R. Kirby, 439 York St. Loss. $300. Three freight cars, at
G.T.R. roundhouse, York Road. Loss, $1,200.
Vancouver, B.C. — May 5 — Main buildings of the Joseph
Chew Lumber Company's shingle mill. Sixth Ave. and Laurel
St. Loss, $25,000.
Y'armouth South. N.S. — May 5 — Warehouse of Yarmouth
Trading Co.
ADDITIONAL INFORMATION CONCERNING FIRES
Hamilton. Ont. — April 28 — Residence of Mrs. Fanny
Michelina, 790 Burlington St., was destroyed. Loss, $1,627.
with insurance of $1,000 in the Ocean Insurance Co.
iFRv Fkioav
f The Monetary Times
I Printing Company
of Canada, Limited
B" The Canadian Engineer"
Trade Review and Insurance Chronicle
of Canada
Established 186";
Old as Confederation
JAS. J. SALMOND
President and General Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
W, A. McKAGUE
Editor
Dominion Mortgage and Investments Association
W. E. Long Elected President at Annual Convention Held Last Week in Winnipeg — Municipal
Defaults, Seed Grain Loans and Heavy Taxes Some of Worries of Investment Institu-
tions— Rural Credits Systems of United States and Canada Land Titles in the West
BOTH tie supply of and the demand for funds for invest-
ment were dealt with at length at the annual conven-
tion of the Dominion Mortgage and Investments Association
held in Winnipeg, May 12 and 13. Municipal defaults in
the bond field, and western mortgages, were given special
attention.
Officers Elected
Officers electe i foi- the ensuing year are as follows:
President, W. E. Long, Toronto, Credit Foncier Franco-Cana-
dien; first vice-president, J. B. McKechnie, Toronto, Manu-
facturers' Life Insurance Co.; second vice-president, J. C.
Breckenridge. Toronto, National Trust Co.; executive com-
mittee.
Insurance — C. S. Macdonald, Toronto, Confederation
Life Association; Charles Ruby, Waterloo, Mutual Life As-
surance Co. of Canada ; G. B. Woods, Toronto, Continental
Life Insurance Co.; F. G. Cope, Montreal, Sun Life -Assur-
ance Co. of Canada; J. F. Weston, Toronto, Imperial Lift
Assurance Co.
Loan — W. C. Noxon, Toronto, Canadian Loan and
Age«cy Co. ; A. B. Fisher, Toronto, Central Canada Loan
and Savings Co.; Joseph Campbell, Winnipeg, Trust and
Loan Co. of Canada ; M. Aylesworth, London, Huron and
Erie Mortgage Corporation; T. Taggart Smyth, Montreal,
Montreal City and District Savings Bank.
Trust— S. Macdonald, Hamilton, Mercantile Trust Co.;
J. T. K. Pickett. Toronto, Union Trust Co.; W. G. Watson,
Toronto. Toronto General Trusts Corporation; E. B. Stock-
dale, Toronto, Trusts and Guarantee Co.; R. P. Pellett, Mont-
real, Royal Trust Co.
Government and Citizenship
Speaking on citizen co-operation in government, Dr.
Horace L. Brittain, of Toronto, director of the Citizens
Research Institute of Canada, said there were three grades
of government in Canada, national, provincial and municipal,
and on these developed the progress of the community.
Every member of a community was entitled to life,
liberty and the pursuit of happiness, but unfortunately
cases had and were arising where governments were
burdening the people instead of contributing to the
prime factors already mentioned. When they saw cases
of manufacturers moving away from one district it meant
generally that the burden of taxation Was too great. Taxa-
tion was essential for the upkeep of the community, but
careful supervision of expenditures also was essential to
keep taxation down to a minimum.
'n the Dominion last year, $357,000,000 was spent on
current account, in the provinces, $76,000,000, while the total
for the Dominion, provincial and municipal authorities was
$550,000,000. It was doubtful, however, if all these moneys
were spent on current account. "I think if careful analysis was
made, it would be fount that a great many expenditures
c:illid 'capital,' would be found to be due to current account.
I know of one province that charged large amounts of inter-
est that were paid out o^ funds into which borrowed moneys
were placed. That is not only misleading, but decidedly im-
moral. It is practically robbery, because if that money had
1 eeii paid o.it of curr.nt funds, other expenditures would
have been impossible and de'ot charges would not be piled
up a a los^, an I earnin;' powers of succeeding generations
mortgaged."
Deposit Business
Speaking on the deposit business as a factor in mortgage
lending insititutions, V. Evan Gray, registrar of loan corpor-
ations for Ontario, creiitel that province with the origin
of the loan and trust corporations in Canada. After trac-
ing the history of loan corporations in Ontario, he outlined
the requirements for mortgage loan money. War con;li-
tions, he said, had affected lending institutions to a con-
siderable extent, while at the present time money was not
flowing into Canada from foreign countries because in-
vestors were receiving attractive offers for their capital at
home, to aid in the post-war reconstruction. But the net
result of the last seven-year period showed that loan cor-
porations had received an increase in deposits of $9,000,000;
an increase in currency debentures of $8,500,000; and out
of this $17,500,000 of new money, $14,500,000 had been re-
paid to Scottish investors. This was not a special feature of
the war, as in seven years the increase and deposits amounted
to $3,400,000. the increase in currency debentures $2,500,000,
and of this $5,900,000, $5,770,000 was repaid to sterling de-
benture holdings.
It had been found, he continued, that the maximum
limits of deposits imposed on loan and trust corporations was
proving irksome, an! if companies were to be relieved of
the necessity of new financing by the issue of new shares
of capital stock a change was necessary in the statutory
limitations. A new field of loan and trust company opera-
tions would be found in a development of the savings de-
posit business and it was to this source that the companies
must look for important new accessions of money for mort-
gage loan purposes, he added.
In his paper on "The Torrens System in Western
Canada," D. J. Thorn, K.C., of Regina, drew a close com-
parison between the old registry system and the present one.
In the past, he said, there were three big drawbacks, namely
uncertainty, expense and delay. The Torrens system was
introduced to remedy, as far as possible, these defects. The
Torrens system was not a new one. It was based on the
principles applied with respect to the transference of per-
sonal property, such as stocks and shares. The new feature
of the system, however, was the certificate of title which
was given to an owner after his title was registered.
After comparing the advantages of the Torrens system
with the old disadvantages, Mr. Thom said he was certain
THE MONETARY TIMES
that the new s.\>Uiii uutweighed the okl one, although he ad-
mitted there were some defects in the Torrens system. "With
the .principles as embodied in any one of our prairie pro-
vinces' acts, and handled by competent officials, we have the
nearest approach to a system of land ti'ansfer law which
meets the needs of to-day," he added.
In regard to uniformity of laws, between eastern and
western Canada, Mr. Thorn said, theoretically, the idea was
good; practically, it was hopeless. The Canadian bar associa-
tion, since 1915, had been working on uniformity while the
commissioners on uniformity met annually and considered
the same subject, but there had been no suggestion of at-
tempting uniformity of land laws.
Rural Credits
The rural credits system and the federal 'banks of the
United States were criticized strongly in a paper read by
K. D. Chassell, secretary of the Farm Mortgage Bankers'
Association of America, Chicago. He declared that this
system had been run for political purposes, and 'that as a
result the federal government had been set back $5,000,000.
Mr. Chassell said that in planning such a system the gen-
eral welfare of the country should be taken into considera-
tion. If private businesses stood in 'the way of advance,
they should be brushed aside.
The speaker advocated that competition between the pri-
vate 'and the government systems o' loans to farmers should
be put on an equal basis, and that no favoritism should be
shown to one which would put the other at a disadvantage.
He>said the farm mortgage bankers in the United States
were compelled to pay their own expenses out of their private
pockets, while those of the federal land banks were paid
from the public treasury. The bankers also object to tax
exemption discrimination in favor of the investors in the
federal land banks. He said also that it was the bankers'
belief 'it would be cheaper in the end for the government to
subsidize borrowing farmers direct that to maintain the pre-
sent rural credits system.
A resolution urging the Dominion government to cease
giving priority to liens or advances for seed grain was
passed at the closing session. Members claimed that the
idea was unjust and economically unsound, while, they said,
the practice was not necessary, as seed grain requirements
could be provided for otherwise. Criticism was made of the
provincial government for again passing this legislation.
Manitoba Farm Loans
W. ■ D. Glendenning, chartered accountant, of Winnipeg,
in an address on the Manitoba farm loans, discussed the
financial methods of handling the organization and the pro-
cedure followed in obtaining the 'requisite moneys for the
scheme. During the three and a half years of the opera-
tion of the association, he said, the province had shouldered
costs amounting to $250,000, and while arguments might be
made that the province possessed an interest in half of
the surplus of approximately $50,000, it could not be used
for distribution as displayed in accounts of the association,
could not be used for distribution to shareholders as return
on their investment, because it would be required, as reported
at the last session of the legislature, for the retirement
of ?uch bcnas as were outstanding.
The whole question of the farm loans, he asserted, was
whether the material benefits derived from governmental
organization make it wise or justifiable for the province to
bear part of the cost.
Concerning "Saskatchewan government farm loans," H.
W. Givins, of Regina, said it might reasonably be claimed
that if repayments could not be applied in repayment of a
specific debt, the funds should be used for 'capital expendi-
tures which otherwise involve additional borrowing at higher
rates. It seemed evident that, being invested in farm loans
stock, thev will not be available when the debenture issues
to which they respectively relate, mature.' On the one hand,
the provincial treasurer of Saskatchewan has been placing
capital funds of the province in farm loan stock beai-ing in-
terest at five per cent., and on the other — and during the
same period — borrowing at rates ranging from 5.35 to 0.47
per cent. In closing, Mr, Givins quoted the provincial treas-
urer as statin;;' that it was not intended that the people of
Saskatchewan should be taxed for the purpose of providing
cheaper money for the farmers.
W. R. McConnell, Regina, dealt with the municipal seed
grain legislation of Saskatchewan: and papers were also
read by W. G. Styles, Regina, and A. M. J. English, Van-
couver, the latter dealing with the indefeasibility of titles in
British Columbia. F. R. Mackellean, of the National Trust
Co., Toronto, discussed the recent Ontario legislation in de-
tail.
Canadian Rural Credits
"Rural Credits in Western Canada" formed the subject
of a paper read by A. E. Parker, editor of Canadian Fnwnc(.\
Winnipeg. He said one of the legitimate functions of such a
scheme was to enable a farmer to put in and take off his
season's crop. In order to warrant such assistance a farmer
should be in a position that with a normal crop the re-
turns should be sufficient to provide for all floating liabilities,
including the advance through the rural credit scheme. One
of the weaknesses of the Canadian banking system, he said,
was that it was established to meet commercial conditions,
and did not provide for agricultural needs and emergencies.
An amendment to the Canadian constitution which would
make it impossible for any legislature to pass any law im-
pairing the obligation ' and sanctity of contracts was sug-
gested by R. B. Bennett, K.C., Calgary. Commenting on the
movement for a definite understanding as to the future status
of Canada as a nation, Mr. Bennett said this might well
settle itself in the days to come. For the moment, in order
that the world might know and not misjudge, when Great
Britain was going through the greatest crisis in its history,
Canadians should take every opportunity to show that their
hearts beat true to "those over yonder" who had faced great
problems and who with great courage and determination iiad
saved civilization for mankind.
Lenders and Borrowers
Speaking at the banquet. Premier T. C. Norris said that
he had been closely identified with the borrow class and the
loaning class, and he found that the two classes were in-
dispensable in the community. If those who represented
this splendid organization were going to continue in busi-
ness and success, it was quite as essential that the borrower
should continue to borrow, and unless mutual interest ^.as
recognized and unless some mutually satisfactory arrange-
ment were carried out. the whole business of development
in the Dominion could not be continued, and neither class
would succeed. This country was passing through a time
of deflation. It had passed through such times before, like
every other country. But there was no country in the world
which recovered so quickly in the past, and that fact made
him optimistically regard the situation now. With the great
resources possessed by western Canada, there was abundant
reason for optimism. Sometimes borrowers were forgetful
of their duty. They must not forget that had it not been for
the ability of the loan institutions to advance money for
development purposes, the progress of western Canada would
have been much slower than it had been. At no time was
a better understanding needed than at the present time.
Hon. C. R. Mitchell, provincial treasurer, Alberta, asked
the mortgage loan men to realize that legislation in the
prairie provinces o" which they complained had not been
passed for "the pleasure of being mean," but because of
circumstances which it had been considered made it neces-
sary. Their attention had been called to the disabilities under
which the loan companies labored in this country, and he be-
lieved every provincial government was willing -to do its
duty toward them to the fullest extent in order to allow of
the free and easy flow of money into this western country.
So far as priority liens were concerned, they could take it
from him as an absolute fact that the policy of the pre-
sent administration in Alberta was that there would be no
further priority to seed grain liens, no matter what the cir-
cumstances might be.
May 20, 1921
THE MONETARY TIMES
The Past Two Weeks in Parliament
Budget Debate Brought Out Well-worn Arguments— National Railways Committee's Report Expected
Soon -Commonwealth Bank Bill Withdrawn— Another Session Expected Before General Election
(Special to The Monetary Times)
Ottawa, May 19, 1921.
Friday, May 6. 1921
In House of Commons: — (a) First readings of following
bills: — Bill amending and consolidating Quebec Steamship
Company Acts, and one amending Criminal Code giving gas
wells protection now given to oil wells, providing against
making metal tokens redeemable in goods and making other
changes: (b) First reading of Patent Act amendment bill
granting relief to patentees and inventors who, through dis-
turbances caused by the war lost their patents by voidance
and to place Canada in position to get benefit of reciprocal
clauses of Nolan bill which passed through both houses at
Washington: (c) Railway estimates debated and many
passed: (d) Second readings of following bills: one respect-
ing Maritime Coal, Railway and I'ower Co., Ltd., and one
concurring in Senate amendments to bill respecting James
!\lacLaren Co., Ltd.
Saturday, >Iay 7
In House of Commons: — (a) Third reading of bill to
authorize ratification and carrying into effect of Protocol
of December Ifi. 1920. accepting statute for Permanent Court
of International .lustice; (b) Immigration and Colonization
Act estimates; (c) Customs and Inland revenue estimates;
(d) Second reading bill respecting Quebec Steamship Co.:
te> Third reading bill respecting Dominion Express Co.
Monday. May 9
In House of Commons: — (a) Second reading Dominion
F.lections .\ct amendment bill; (b) Budget address by Sir
Henry Drayton; (c) Second reading bill to amend Bankruptcy
Act.
Tuesday. May 10
In House of Commons: — (a) Third reading bill lo amend
Banki-uplcy Act; (b) Budget debate continued by Hon. W. S.
I'"ieldiilg. Sir (ieorge Foster. Messrs. McMaster, Kdwards,
DuTrcniblay, Casselnian and Baldwin.
In the Senate: — (a) First readings (ias Inspection bill.
Opium and Narcotic Drug bill. National Research bill and
Court of International Justice bill; (b) Third readings of
bill incorporating Fidelity Insurance Co. of Canada, bill in-
corporating Metropolitan Trust Co. of Canada, bill respecting
the Credit Foncier Franco-Canadien. bill respecting Western
Dominion Railway Co.
Wednesday, .May 11
In House of Commons: — (a) Budget debate continued by
the Hon. C. C. Ballantyne, Dr. Michael Clark. ^lessrs. .Manion.
and Nesbitt and Hon. Rodolphc Lemieux.
In the Senate: — (a) Debate on Lord Shaughnessy's pro-
posal regarding Canadian railways and their future opera-
lion; (!)) First readings of following bills:— One iespecting
(ireat West Bank of Canada and one to incorporate Edmon-
ton and >lackenzie River Railway Co.; (c) Second readings
of bill respecting Central Railway of Canada and bill to in-
corporate Fort Smith Railway Co.; (d) Third reading Public
Harbors bill providing larger penalty for cleaning ships in
harbor of accumulated oil.
Thursday. May 12
In House of Commons: — (a) Budget debate continued by
Messrs. F. L. Davis, Hon. Hugh Guthrie, McKenzie, Nichol-
son and Thomson.
In the Senate: — (a) Second readings of Gas Inspection
bill giving government authority to have gas measured by
heat units instead of by the cubic foot. Court of International
Justice bill. Opium and Narcotic Drug biU.
I'^iday, May 13
In House of Commons: — (a) Inspection and Sale Act
amendment bill (hay and straw inspection) read first time;
(b) Budget debate addresses by Premier Meighen, Messrs.
Pacaud. .Vnderson and Maharg.
In Senate: — (a) First reading of following bills: — One
amending Dominion Lands Act, and one amending Northwest
Territories Act; (b) Gold and Silver Marking bill with-
drawn; (c) Second reading Animal Contagious Diseases Act
amendment bill providing for three years' extension of com-
pensation features for animals destroyed; (d) Second read-
ing Conservation .Vet Repeal bill; (e) Second readings of
following bills: — One respecting (Jreat West Bank of Can-
ada, one incorporating Edmonton and Mackenzie River
Railway Co.
Saturday. May 14
In House of Commons:— (a) Budget debate continued by
Messrs. Cowan. Reid (Mackenzie), Mclsaacs, Kennedy
(Essex). Charters, Knox, and Fortier; (d) Third reading
({uebec Union Electric Telephone Co. bilk
Monday. May 16
In House of Commons:— (a) Budget debate continued by
Alessrs. Armstrong (Lambton). Prevost. Demers, Caldwell,
Turgeon, Morphv, Leduc, Dechene and Sinclair (Queen's,
P.E.I.).
Tuesday, May 17
In House of Commons:— (a) Budget debate continued
bv Hon. T. .V. Crerar, Messrs. Cockshutt, Pardee. Harold.
>icCoig. McGibbon (Muskoka). Lanctot and Butts; (b) Third
readings of hill to amend and consolidate acts respecting
Quebec Steamship Co., and lo incorporate Standard Insurance
Co.. the title of latter company being changed on third read-
ing to Ensign Insurance Co.
In Senate:— (a) First reading Quebec Union Electric
Telephone Co.; (b) Third reading of bill to amend and con-
solidate acts respticting inspection of gas and gas meters;
(c) Second reading Bankruptcy bill.
Wednesday, May 18 __
In House of Commons:— (a) Budget debate continued.
In Senate: — (a) Commonwealth Bank bill withdrawn.
Financial Situation Uppermost
Since the delivery of the budget address by Sir Henry
Dra>'ton, Minister of Finance, on the evening of Monday,
May 9th, practically the whole time of parliament has been
taken up by the budget debate. The familiar changes on the
old protection versus free trade controversy have been rung,
and the Opposition speakers have drawn the Government's
attention to past sins of omission and commission, recom-
mending more economy and dweUing on the present financial
condition of the country. Some doubts have been expressed
as to whether the government will be able to collect sufficient
revenue with the extended sales tax to meet all the demands
upon it, and the criticism ventured most often on this feature
of the government's proposals is that it seems to be making
no provision for a constant and progressive reduction of the
national debt, which increased more than a hundred million
dollars last year because of advances to the railways. Thus
the railway situation has dominated the budget debate as it
did previous debates in parliament. The acceptance by the
Grand Trunk shareholders of the government's proposals for
THE MONETARY TIMES
Volume 66
an immediate handing over of tlio road clears the way to the
final co-ordination of all the government roads with the
Grand Trunk Railway, and the final selection of a board of
directors and chairman to manage them. Even with the
economies that will be affected in this way the disposition
here is to expect large deficits for a number of years, but
the hope is that with increasing immigration and denser
settlement near the railroads the deficits will eventually dis-
appear. It is admitted by all that the county for the most
part is over-built, although there are other railway enter-
prises which will have to be undertaken soon or completed,
but this is beginning to be looked upon as a possible ad-
vantage in that the country is prepared ahead of time for
the population that will come to it, and to take care of the
traflfic that will consequently grow. The first load is the
heaviest.
The special parliamentary committees on the Canadian
National Railways will report shortly. Their reports will
not affect the situation materially because the magnitude of
the task undertaken by each was such that it could not pos-
sibly be covered in so brief a space of time.
It is generally expected now that another session of
parliament will be called for next January, and that the
general election will be in the summer or fall of 1922. The
redistribution bill will be the important legislation then, and
possibly the tariff revision postponed from this year.
VICTORIA TO DRAW TOURIST BUSINESS
Natural Surroundings and Government Sale of Liquor are
Advantages — Some New Industries
(Stafl' Special)
Victoria, May 18, 1921.
rpHE city of Victoria, the beautiful capital of British Colum-
A bia, is now at the height of its beauty, and during the
next three or four months will be visited by thousands of
tourists. A great deal of wealth is centred in Victoria, as
many wealthy citizens of Canada have come there, also large
numbers of English people to reside permanently. It is
doubtful if, per capita, there is any other city in Canada
that could compare with Victoria in wealth. Victoria is
going to concentrate on building up a great tourist industry
if that is done industrial expansion of the right kind will
undoubtedly follow.
Developments in Fruit
One of the most important industries Victoria has ever
had, is about to be established here. This is a Loganberry
juice plant, which it is proposed to set up at once, for the
manufacture of Loganberry juice, either in the raw state
or concentrated for shipment throughout the different Can-
adian provinces.
The Loganberry which was comparatively little known
until the last few years has come greatly into favor. It
thrives only on the coast, west of the Cascade range, and
cannot live through frost. It is excellent in the fresh state
or made into jam, but is more popular as a drink. Further-
more, it has been demonstrated that an acre of berries con-
verted into juice represents double the revenue from the
marketing of the berries in the fresh state. One large factor
to be considered is the elimination of all loss through de-
terioration when only the juice is handled. Thirteen pounds
of berries produce an imperial gollon, i.e., ten pounds, and the
by-products can also be marketed.
The British Columbia Fruit Markets' Commissioner is at
present on a trip through the prairie provinces and Ontario
\vith a view to studying the situation. He has an assured
market already this year for twenty thousand gallons of
juice on the prairies. It is anticipated that there will be a
big demand from Ontario owing to the dry condition of
that province. The Loganberry plant in Victoria will be con-
ducted on a co-operative basis, the fruit growers will be
assisted by the business men of the city. Next year it is
expected that the same organization will go into the manu-
facture of fermented juices, wines, etc. There will not be
time, however, this year, to undertake this branch of the
work. It is anticipated that this venture will prove an im-
portant factor in swelling the provincial revenue, and tiding
the fruitgrowers who have gone in heavily for Loganberry
culture over what otherwise with an unstable jam market
might prove a very trying season.
Other New Industries
Another industry which is fairly on its feet, though not
yet in a condition to cater to the trade except in a small
way, is the wool industry. The Sidney Roofing Co. has
established its headquarters in Victoria, and is moving its
entire plant to this city. The Hudson's Bay Co. is opening
its departmental stores on August first. The completion of
the Johnson Street bridge and the changing of the main
highway will mean the shortening of the route fom Victoria
to Esquimalt by nearly a* mile. Several new business blocks
have been completed during the past year and others are in
progress of construction, building activities fairly brisk at
the present time.
Advices received from prospective travellers indicate a
very large tourist trade this year. The fact that this pro-
vince is under government control is proving an excellent
advertisement, and will doubtless attract many people, who
are unsatisfied with the prohibiting conditions of their own
states and provinces.
Business generally in Victoria was found to be quiet as
elsewhere, but financial and commercial conditions could be
said to be healthy and on a par with the other large centres
of the west. The Pacific coast has a number of serious
problems in its midst. There are seventeen thousand
Japanese and thirty thousand Chinese living in British
Columbia.
STERLING BANK OF CANADA
One feature of the repoit of the Sterling Bank of Can-
ada which always attracts attention, and which is particularly
prominent in the statement for the year ended April 30, 1921,
just made public, is the remarkably strong liquid position
which the institution maintains. The ratio of liquid assets
to liabilities to the public is shown at 71.43 per cent., as
compared with 70.83 per cent, in the previous year. A
stronger cash position is also shown, the ratio being 16.10
per cent, of the liabilities, as compared with 15.90 per cent,
given in the preceding report.
With such large reserves, it is evident that the bank is
building up a good position to ably handle the expansion in
business which will follow the slump, and this is indicated
in the report of the president, when he said: "You will under-
stand why the item of current loans shows a decrease. Last
year this account stood 30 per cent, higher than the previous
year — we had not yet passed into the readjustment period.
The figures in the report now indicate the policy your direc-
tors have followed during the past twelve months. It w&s
their intention and plan that the bank's assets should be in
as liquid a position as possible, so that advantage might be
taken of conditions such as would prevail after world affairs
and general business matters were completely readjusted."
Notwithstanding the uncertainty which has pervaded the
commercial world during recent months, and which has re-
flected on our financial institutions. Sterling was R'ble to
show a profit of $255,976, as compared with $251,346 in 1919-
20 period. The dividend was raised from 7 to 8 per cent.,
$83,000 was transferred to contingent account for deprecia-
tion of assets, etc., and $50,000 was transferred to reserve
fund. The balance c&rried forward was $37,564, p* •com-
pared with $42,942 previously.
May 20, 1921
THE MONETARY TIMES
Trade Review and Insurance Chronicle
of Canada
Address: Corner Church and Court Streets. Toronto. Ontario, Canada.
Telephone: Main 7404, Branch Exchansre connecting all departments.
Cable Address : "Montimes. Toronto."
Winnipes: Office: 1206 McArthur Building. Telephone Main 8409.
G. W. Goodall. Western Manager.
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ADVERTISING RATES UPON REQUEST.
The Monetary Times was established in 1867, the year of Confedera-
tion. It absorbed in 1869 The Intercolonial Journal of Commerce, of
Montreal: in 1870 The Trade Review, of Montreal; and the Toronto
Journal of Commerce.
The Monetary Times does not necessarily endorse the statements and
opinions of ita correspondents, nor does it hold itself responsible therefor.
The Monetary Times invites information from its readers to aid in ex-
cluding from its columns fraudulent and objectionable advertisements. All
information will be treated confidentially.
SUBSCRIBERS PLEASE NOTE:
When chansrin? your mailing instructions, be sure to state fully both
your old and your new address.
Al] mailed papers are sent direct to Friday evening trains. Any sub-
scriber who receives his paper late will confer a favor by complaining to
the circulation department
PRINCIPAL (.OM'E.NTS
Retailers Now Taking Losses .
Canada and South Africa
A New Automobile Concern
Assessments and Land Values
Special Articles:
Dominion Mortgage and Investments Association. ... 5
Past Two Weeks in Parliament 7
Insurance in Ontario in 1920 14
Ontario Legislation Covers Broad Field 18
Immigration and Unemployment 20
Investing in Oil 28
Premises Tie Up Banking Capital 30
Quarter Billion Loss, Who's Responsible? 32
Registration of Trade Mark 34
Agent Fraudulently Withdrawing Deposit 34
Monthly Departments:
Building Permits 22
Trade of Canada in April 24
Weekly Departments:
News of Industrial Development in Canada 36
New Incorporations 38
News of Municipal Finance , 40
Government and Municipal Bond Market 42
Corporation Securities Market . . .* 46
The Stock Markets 48
Corporation Finance 50
Recent Fires 52
RETAILERS NOW TAKING LOSSES
THE retail trade in Canada i.s now falling in line with the
general movement towards price reductions. There are
already a few commodities, the retail price of which is not
more than 50 per cent, of what it was a year ago. While
the reductions made some time ago by manufactui'ers i".'nd
wholesalers has taken part of the burden from the shoulders
of the retailer, yet the latter must cut his prices as a whole
to bring them into line with the prices of his new stocks.
This action on the part of retailers had been anticipated.
A survey mi'..de in .-^pril by the .American Bankers' .\ssocia-
tion showed that liquidation in the United States and in the
world has proceeded to a point at which all elements in our
economic life must fall in line. Neither money nor trans-
portation costs nor taxation nor materials nor labor can
effectively nor permanently E.void the irresisitible forces that
are working toward readjustment on a lower level. Indeed,
it would work to the disadvantage and not to the advantage
of those factors that would, if they could, keep out of line
with the rest. The weight of opinion is, however, that this
readjustment, this tendency toward stabilization, will not be
accomplished in the year or the two years that lie just ahead
of us.
Our whole economic life has been thrown out of align-
ment by the war, and the period of inflation that continued
after it. Every element was thrown out of line, some to a
grea-ter degree and some to a lesser degree. It is but natural
that not all elements should respond in the same degree,
and with the same rapidity to the forces working toward re-
adjustment, but it is inevitable that ultimately the normal
relative position of all these elements will be restored, and
then we shall have what we cf..ll stability.
Inflation is the inevitable result of war, because con-
sumption and waste increase at the same time that wealth
is destroyed and the world's ability to create new wealth is
decrer.tsed. Commodities and services required for the pur-
poses of war create no wealth out of which payment for
them can be made, and consequently there must be expan-
sion of credit and currency, operating to produce the other
manifestations of inflation that are so familiar to all of us.
CANAU.V .VXD SOUTH AFRICA
AN outside view of a country is necessarily more uncer-
tain as to detail, but is more clear as to perspective,
than one from within. Such a view of Canada has been
tensely expressed by I. Wallaeh, of Pretoria, in his report
as delegate to the British Chamber of Commerce Congress
here. After a brief eulogy of the Dominion as a whole, he
draws some striking contrasts. Canadian fruit he describes
as "watery and insipid, used as we are to greater sweetness
— thanks to our magnificent sunshine." Zambesi Falls, he
says, are much more beautiful than Niagara, but not so use-
ful. Canadian dependence upon the United States for coal,
for capital, and for many of its industrial plants counters
to some extent the imperial influence. Continuing Mi-. Wal-
laeh says: —
"There is much that we can learn from Canadian push
and efficiency. There is one thing in particular that I should
like to impress on you. Whereas in some countries (the
names of which wild hcrses would not drag from me) a
large proportion of merchants are happy to persist in a state
of perpetual importation from abroad, the Canadian dealer
shows a keen and beneficent interest in his own country's in-
dustry. He always considers how he can advance its inter-
ests, and his Chambers of Commerce are doing what they
can for Canadian factories. So far from keeping their eyes
glued on the question of imports, Canadian business men are
for ever trying to foster exports. That, gentlemen, is the
spirit which makes a country great: to become self-support-
ing first, and an exporter afterwards.
"I will admit that the Canadian climate in its vigor is
a greater stimulus to hard work than ours. But I will also
sa.v that not to be burdened with a seven months' cover of
THE MONETARY TIMES
Volume 66
thick snow is a great advantage. South Africa has neither
the wood nor the water of Canada, but it has an advantage
in cheap unskilled labor; it is still richer in minerals than
Canada; it can produce a greater variety of agricultural
products; in cattle it leaves Canada far behind; its more or
less cheap coal is an advantage not shared by those parts of
Canada which are without water power. It has not the com-
petition of a powerful neighbor like the United States. It
has ports that do not know what ice is. It has no such bar-
rier as the Rockies to divide East from West."
A NEW AUTOMOBILE CONCERN
ANGLO-AMERICAN MOTORS, LTD., has been incorpor-
ated with a capital of $10,000,000 for the purpose of
"manufacturing in Canada a Canadian car at a Canadian
price." Half of the stock is 8 per cent, cumulative prefeo-ed
and is being offered for sale at par with a bonus of 40 per
cent, common stock, by Manning Brothers and Co., Ltd.,
Toronto. Evidently the preferred stock is all that will be
sold for cash; in fact $4,500,000 is all that is estimated in
the prospectus as cash to be received. From this $450,000 is
to be deducted as expenses of financing. Actual investments
in pi-oductive property are estimated as follows: Machinery
and equipment, $2,000,000; plant and building, $500,000;
lan'd (30.5 acres) $100,000; blue prints, working drawings,
factory plans, and. machinery layout, $68,000. The remainder,
$1,382,000, is to be used as circulating capital.
This plan of financing is all right, though the large
amount of water is obvious, and it should also be pointed
out that the underwriters receive not the usual block of
common stock, but 10 per cent, of the cash from the sale of
the preferred shares. It is the estimate of profits that is
rather too rosy. With an actual investment of $4,500,000
of capital, fixed and circulating, the company expects to
make a profit of $2,250,000 per annum, or 50 per cent. In
the halcyon days of war prosperity such profits were fre-
quently made, even by new concerns, but they cannot be ex-
pected under normal conditions, much less at present. The
company plans to manufacture two "La Marne" cars, one to
sell at $975 and the other at $3,000, the hope being expressed
that the larger car "would be without competition amongst
the medium priced and high priced cars and that in conjunc-
tion with a small car the company would hold the upper
hand in the automobile market of Canada." This may of
course be accomplished if the company can, with $4,500,000,
put up "the most complete and modern automobile plant on
the continent," but the whole project seems to be too am-
bitious for this country and out of proportion to the capital
involved.
ASSESSMENTS AND LAND SALES
ABOUT three years ago a plan originated in Winnipeg
for the adoption for land assessment purposes of valua-
tions fixed by the owners, such valuations to be the price
at which the owners agreed to sell the land. The plan was
never put into force by legislation. Now, however, the
Western Canada Colonization Association after investigat-
ing the situation throughout western Canada, has concluded
that there can be no successful colonization effort at the
present time without lists of unoccupied land for sale at
prices good tor a reasonable period. The only vacant land
within easy reach of existing railways is held out of pro-
duction by absentee owners, and speculators.
The association has asked each of the prairie province
governments to create a L&nd Settlement Board, clothed
with authority to require each owner of unoccupied land
to place a sale valuation on his holding good for two years;
such sale valuation to be the basis of the wild land taxa-
tion for the future. It is also desired that the absentee
owner appoint a land agent in the locality of his land with
power to conclude the sale of his holdings to settlers brought
in by the Western Canada Colonization Association, or any
other colonization agency.
These proposals have been favorably received by the
retail merchants, the banking fraternity, and the United
Farmers of Manitoba. They have received the support of
farm papers on the prairies, and of daily and weekly news-
papers throughout the three prairie provinces. At the in-
stance of Premier Norris, of Manitoba, the three prairie pro-
vince premiers are to be called shortly into conference with
the executive of the Western Canada Colonization Associa-
tion. It should be borne in mind, however, that the freedom
of the individual to buy or sell his property is a funda-
mental principle of private ownership, to which exception
is made only in such individual cases as where property is
required for public use. To adopt such a wholesale meas-
ure as is suggested, for the resale of the property to other
individuals, would not help western Canada's reputation as
an investment field. Would not a comprehensive list of
properties be sufficient to promote the work of colonization?
LIFE INSURANCE AND THE INCOME TAX
THAT life insurance policyholders should start a cam-
paign for the exemption of life insurance premiums
from income tax is suggested by Canadian Insurance. In
support of the argument it is stated that "all the prominent
statesmen and financiers, not only of Canada, but of the
world, advocate life insurance as being a tremendous in-
fluence for good in the affairs of the individual, the com-
munity, and, be it emphasized, the state." Presumably i.ur
contemporary knows the views of all the prominent states-
men and financiers, whoever they may be, on the subject, but
apparently it has overlooked the fact that life insurance is
often sold as an investment, not merely as protection for
dependents, and that property, bank deposits, bonds and
stocks are also investments the income from which could be
exempted with equal justification.
The principle of the income tax is, however, that it
reaches those able to pay, i.e., those who have a taxable in-
come, and does not concern itself with the disposition of that
income. In this respect it differs from customs and excise
duties and all other taxes which are based on expenditure.
It is this principle which has made the income tax the most
popular means of revenue of the present day. The man who
uses his income to pay insurance premiums should pay just
the same as others.
$36,227,715 of new capital authorized for companies
incorporated in Canada during one week is an indication
that the future is not regarded as wholly devoid of business
possibilities.
ACCIDENT POLICY AS A LIFE SAVER
A little insurance story, admitted as being rather chest-
nutty but still worth repeating, is told in the May Gosling,
published by the Alberta Pond of the Blue Goose. A travel-
ler on a ship that was wrecked, was the sole survivor, and
was cast upon a small island. The island was a mere rock
in the vasty deep, and devoid of vegetation, nor had the
shipwrecked traveller any means of shooting birds or animals
— there being none. Several months later a second ship
observed signals of distress on the island and sent a boat
ashore. The officer in charge of the boat listened to the sur-
vivor's tale interestedly but dubiously. "If you have been here
nine months," he said, "how have you managed to live?
There is no vegetable or animal life at all." The other
replied : "Before I sailed, I took out an accident policy, and
when I was wrecked, that policy was, happily enough, in
my pocket. 'In that policy, gentlemen, I found sufficient
provisions to last me nearly a year."
Mav 20, 1921
THE MONETARY TIMES
Exchange Business
w
the market
for the purchase or
sale of Bills of Exchange,
and through our branch
in London, England, and
our New York Agency,
we are in a position to
transact business of this
nature at the most favor-
able rates.
THE CANADIAN BANK
OF COMMERCE
Head Office
Paid-up Capital
Reserve Fund
$15,000,000
$15,000,000
This Bank Works for You
Manufacturers and merchants placing
their business accounts in any branch
of this bank, benefit by highly efficient
service and expert advice on all mat-
ters pertaining to financing. In close
daily contact with markets and ex-
changes, we are in a position to offer
helpful co-operation in the trans-
action of your affairs.
IMPEKIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain :— England — Lloyds
Bank. Limited, London, and Branches. Scot-
land The Commercial Bank of Scotland,
Limited. Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank. Limited.
Industry
of the Soil
I 'HE resources of this Bank are an
essential element in the Dominion's
fundamental industry — exploitation of
the soil.
For 55 years we have been promoting the
interests of agriculturists.
To-day, our co-operation is being utilized
from coast to coast in an endeavor to
increase the output of the fields.
UNION BANK
OF CANADA
THE
Bank of N
ova Scotia
Established 1832
Capital
$9,700,000
Reserve
$18,000,000
Total Assets
$230,000,000
GENERAL OFFICE
. TORONTO, ONT.
H. A. Richardson.
General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land. Cuba, Porto Rico, Dominican
Republic. Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Enj
55. OLD BROAD
g.. Branch:
STREET. E.C.2
THE JI 0 N E T A R Y T I :\I E S
Volume 66
PERSONAL NOTES
W. E. Long, wlio was last week elected president of the
Dominion Mortgage and Investments Association, has been
with the Credit Foncier Franco-Canadien in his present
capacity of manager of the Ontario division for 33 years.
An attendance of 125 at the convention shows the interest
in the association's work at the present time. Speaking from
his own long ex-
perience, Mr. Long
in presenting the
report of the
executive commit-
tee drew attention
to some of the out-
standing points in
the present situa-
t i o n . He em-
phasized the fact
fact that mort-
gage money must
now be secured in
Canada, and in
view of our limited
capital the supply
should not be in-
terfered with by
legislation of a
discriminatory or
restrictive char-
acter. A mort-
gage lender, mak-
ing a contract in
conformity with
existing statutes, frequently found that during its currency
new legislation had been passed, which generally resulted
deleteriously to the lender. To those engaged in obtaining
funds for investment in mortgage securities it had been
found that one of the great obstacles was the uncertainty as
to what might be done by legislators.
E. B. McBryde has been appointed to handle the electric
department of the Royal Indemnity Company, in connection
with the new electric motor insurance which the company is
now writing. Mr.
McBryde has had
considerable e x -
perience in the en-
gineering side of
this class of in-
surance in Eng-
land and has made
a close study of it
during the past
ten years as ap-
plied to Canadian
conditions. He
came to Canada in
1910, and in 1912
undertook a por-
tion of the work of
standardization of
the Toronto Elec-
tric Light systems.
As assistant sup-
erintendent of dis-
tribution with this
company he had
iin opportunity to
study the applica-
tion of electrical
insurance to the
larger number of power consumers. He was appointed as-
sistant sales manager of the company in 1914, which posi-
tion he held until 1917 when he left to engage for four years
in the handling of electric power equipment and its applica-
tion to industrial purpose3.
Kenneth Thom has been appointed assistant fire man-
ager for the Employers' Liability Assurance Corporation.
Frederick S. Farris, for thirteen years manager for
the Excelsior Life Insurance Company, for New Brunswick,
died recently.
Ralph M. Bird, secretary of the Canada Bond Company,
Toronto, has been appointed to succeed Frank E. Fisher as
vice-president and general manager.
F. G. Cope, secretary of the Sun Life Assurance Com-
pany, and F. D. Macorquodale, of the same company, have
been in Great Britain recently.
BANK BRANCH NOTES
The Dominion Bank of Canada has opened a new branch
at Kenora, Ont.
The Imperial Bank of Canada is to erect a new build-
ing at the corner of King K^nd Ai-gyle Streets, Preston, Ont.
The Bank of Montreal announces the following: W. H.
Hogg, manager at Vancouver, appointed superintendent of
British Columbia branches; E. V. Leslie, manager at Inger-
soll, appointed manager at Goderich; G. B. Hutchings, a-p-
pointed manager at 12 King St. East, Hamilton; G. C. Dewar,
appointed manager at Ingersoll; E. S. Martin, manager at
Yonge St., Toronto, appointed manager at Peterboro; C. C.
Walker, appointed acting manager at Riverport, N.S.; J. J.
Bryan, manager at Eglinton, appointed manager at Carlton
St., Toronto; C. S. R. Laidlaw, mana.ger at Carlton St., Tor-
onto, appointed manager at Yonge St., Toronto; G. F. Laing,
formerly manager Yonge and Wellington Streets, Toronto,
appointed manager at Vancouver; A. G. Guest, appointed
acting manager at Wolfville, N.S.
W. H. Hogg, manager and acting superintendent of the
Bank of Montreal in Vancouver, who has been appointed
superintendent of the b&nk for the whole province, went
to Vancouver in January, 1913, from Calgary, to suc-
ceed R. R. Wallace, as manager of the Vancouver branch,
and when T. A. Clarke, their superintendent, was called to
the head office a>t Montreal, Mr. Hogg took over his duties.
For two years Mr. Hogg has been acting superintendent of
the bank.
The Bank of Montreal are to erect a new building at
Kentville, N.S., at a cost of $350,000.
The Royal Bank of Canada announces the following:
M. W. Wilson, superintendent of branches, and S. R. Noble,
general inspector of foreign br&nches, head office, sailed
on April 22 for England and the continent. Whilst abroad
they will visit the London, Paris and Barcelona offices of
the bank. J. A. Laird, for the past sixteen years in charge
of Hamilton East End branch, h&s been appointed assistant
manager at the main office. Two new assistant inspectors,
R. M. Sutherland, who until recently was manager at Du-
buc, Sask., will have his headquarters in Winnipeg, and N. E.
Zimmerman, recently assistant manager at Hamilton, will
be attached to the supervisor's department, Toronto.
During the month of .\pril there were eighteen branches
of Canadian banks opened. The following have not already
been mentioned in The Monetary Times: Earlton, Ont., Hoche-
laga; Lac Bouchette Sta., Que., Hochelaga; Leroy, Sask.,
Standard; Rigaud, Que., Nationale; St. Catherine, Portneuf,
Que., Nationale; St. Gerard M&gslia, Que., Pi-ovinciale; St.
Redempteur, Que., Hochelaga; St. Thuribe, Que., Nationale.
The following seven branches were closed: Brantford,
Ont., Eagle Place Branch, Hamilton; Bristol, Que., Nova
Scotia; Caimanerr., Cuba, Royal; Deepdale, Man., Union; La
Passe, Ont., Provinciale; Laurel, Ont., Hamilton; Marshville,
Ont., Hamilton.
The branches opened were distributed among the banks
as follows: Royal, 3; Hochelaga, 3; NationaJe, 3; Dominion,
2; Montreal, 1; Home, 1; Imperial, 1; Standard, 1; Provin-
ciale, 1; Nova Scotia, 1; Commerce, 1.
May 20, 1921
THE MONEIARY TIMES
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I The Sterling Bank \
I OF CANADA |
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Travellers to countries outside Canada have — in our
Foreign Department — a comprehensive fund of in-
formation at their disposal and complete facilities for
obtaining such factsasare not immediately available.
Head Office
KING AND BAY STREETS, TORONTO
ESTABLISHED %^MSHHik -^ 1912
Commonwealtb Banf? of Hustralia
All classes of GENERAL AND SAVINGS BANK business are trans
acted in all the principal cities and towns of Australia. Rabaul and
London.
OHNISON MII.LKR,
JAS KELL.
Deputy G
LONDON JOINT CITY AND
MIDLAND BANK LIMITED
Right Hon. R. McKENNA
Subscribed Capital
Paid-up Capital -
Reserve Fund-
Deposits (J;c i'sf. ^"i^oi
- £38,1 16.050
- 10,859,800
- 10,859,800
- 371,841,968
HEAD OFFICE ;
STREET. LONDON. EC:
. OLD BROAD STREET, LQNDON. EC 2
THE CLYDESDALE BANK LTD.
rncorporex+dd
- - 1&55
Bratiches
Through out
Ccxntxcla
THE MOLSONS BANK
Capital and Reserve - $9,000,000
Over 130 Branches
Experienced travellers rarely carry large sums of
money round with them, instead they use Letters
of Credit payable all over the world. Full informa-
tion about these will be gladly given by the Manager
of The Molsons Bank.
EDWARD C. PRATT, General Manager ,9.,
For Less Service —
A Lower Rate
Heretofore, when you asked the long distance opera-
tor to connect you with a distant telephone, even
though you said to her, "Anyone at that number aill
Jo," you paid the same rate as if you had specified
a particular pcrsoti.
Now, a rate is in effect for this type of call (" Stalion-
to-Station " service) which is lower than for calls
where a particular person is wanted. ,
The operating cost and use of circuits involved in
handling a call for a particular person are much greater
than for a message where the calling party will talk
with anyone n>/io ansTi>ers the distant telephone.
It is a real economy, when placing long distance calls, to
say whenever possible, "Anyone at that number ntilt do,"
Every Bell Telephone is
n Long Distance Station
THE BELL TELEPHONE COMPANY
OF CANADA
50%
Statistics show that 50% of the people
who died in Ontario in 1 920 died without
leaving any property.
This does not necessarily mean that none
of these people had ever possessed any
property. Doubtless many of them at one
time had possessed property, but through
lack of oversight or good judgment they
lost all they had, and died penniless.
You can protect yourself against such a
calamity by investing your property
under the plan known as the " Voluntary
Trust."
This plan is fully set forth in our booklet
entitled " Voluntary Trusts and their
Uses."
Write to-Jav for a copy
THE
TOROT^TOGEySERALTRUSTS
CORPORATIOTH
B.AY and MELIND.A STS.
TORONTO
THE MONETARY TIMES
INSURANCE IN ONTARIO IN 1920
All Classes of Business Show Substantial Growth — Weather
Companies Did Not Experience a Very Favorable
Year, Losses Being Heavy
THERE are now three life insurance companies operating
in the province of Ontario under a provincial license, ac-
cording to the abstract report of the superintendent of in-
surance for 1920, the figures of the Ontario-Equitable Life
and Accident being included for the first time. It is interest-
ing to note how these companies compare, and the following
figures give a good illustration.
Equity
Life.
Gross premiums $ 121,725
Total income 192,096
Claims 15,.50O
Total expenses 133,353
Total assets 721,246
Liabilities 675,452
Capital 35,400
Net amount at risk 4,048,102
Joint Stock Fire Companies
Tliere are two joint stock fire insurance companies, and
the important figures for 1920 compare as follows: The com-
bined results of these two companies show that the net
amount at risk at the end of the year was $115,281,692, com-
pared with $87,694,708 in 1919. Losses were $265,410, com-
pared with $196,400 previously: —
Merchants. Queen City.
Gross premiums $ 570,634 $ 200,673
Total income 606,947 237,807
Losses 198,978 66,431
Total e.xpenses 452,289 176,903
Total assets 807,422 555,259
Liabilities 425,720 146,805
Capital 150,000 100,000
Net amount at risk 90,670,047 24,611,645
Cash Mutual Fire Companies
Cash mutual are distinguished into those having no joint
stock capital, and those having a joint stock capital. The
results of the former are as follows: —
Policy-
Ontario
holders'
Squitable.
Mutual.
$ 18,168
$ 150,564
150,632
161,766
12,300
31,905
105,311
171,150
285,293
75,438
249,434
41,050
46,640
864,800
4,745,521
Gore
District.
74.055
Perth. Waterloo.
63,455
82,010
197,561 131.502 185,010
325,841
96,584
232,901
1,156,346
170,147
251,788
68,328
187,428
947,239
124,266
352,543.
92,007
360,926
1,192,255
177,721
Fixed payments. . 68,822
Cash premiums . . 149,117
Total receipts . . . 339,015
Losses paid .... 57,157
Total expenses . . 182,779
Total assets 1,161,583
Liabilities •. . . 176,286
Net amount at risk. 28,694,626 38,776,015 34,281,097 43,731,154
Ca.sh Mutuals With Joint Stock Capital
Cash mutual fire insurance companies with joint stock
capital are five in number. The Fire Insurance Exchange
has a paid-up capital of $43,650; total assets of $90,635; total
liabilities of $25,707. Cash premiums in 1920 amounted to
$22,602, with total income at $29,951. Losses were $21,654
and total expenditure, $39,857. The net amount of insurance
at risk is $6,-580,408.
Hand-in-Hand had losses of $96,971, as compared with
cash premiums of $314,923, and total income of $350,324. The
net amount at risk is $20,142,494, and total assets are $368.-
418, with liabilities of $168,817.
The figures for Millers' and Manufacturers' show a net
Limount at risk of $12,041,777. Total assets are $188,335:
total liabilities, $61,949; capital, $25,000. Total income last
year was $114,117, and total expenditure, $94,885.
Monarch had losses of $47,292, and total expenditure of
$131,081, as against total income of $143,310. The capital
stock of the company is $102,152; total liabilities, $86,716,
and total assets, $137,313; net amount at risk, $10,675,341.
The results of operations of the Wellington show a net
amount at risk of $15,765,407. Total assets are $246,611;
liabilities, $108,744; and capital, $124,500. Cash premiums
totalled $158,504, and total income, $180,247, while total ex-
penditure, including losses of $51,146, amounted to $157,257.
Purely Mutual Fire Companies
Fire companies of the purely mutual character are very
much in the majority, there being seventy-two in number,
as compared with seventy-one in 1919. A comparison of the
summary shows the following interesting results: —
1920. 1919.
Total assets $ 13,929,026 $ 12,506,102
Liabilities 22,832 21,689
Net amount at risk 409,858,341 369,951,356
Fixed payments 802,512 688,541
Assessments 161,863 166,561
Total income 1,121,140 988,328
Losses 620,839 599,783
Total expenditure 899,951 863,724
A summai'y of the results of fire insurance mutual com-
panies of all classes, shows the following comparisons: —
1920. 1919.
Gross amount at risk $452,379,470 $408,176,771
Premium notes net unassessed. . 13,394,975 12,165,349
Surplus of assets over liabilities. 18,294,556 16,616,236
New business taken 178,264,243 154,484,626
Premium notes taken 6,363,397 5,440,448
Weather Insurance
Three companies transact weather insurance, namely,
Huron Weather, Ontario Farmers' and Western Farmers'.
Assets of the three companies amount to $847,247, as com-
pared with $766,399 in 1919. Total liabilities at the end of
1920 were $42,450, as against $106,189 at the end of the
previous year. The net amount at risk is now $39,741,285,
while in 1919 the figure was $28,474,320. Losses were much
heavier at $229,777, and the total expenditure amounted to
$349,889, as compared with $39,488. Total receipts were
$256,660, as compared with $67,984 in 1919.
The statement of the Provident Assurance Company, of
Montreal, which is the only one given under the heading of
accident, sickness, guarantee and automobile, shows a net
amount at risk of $28,954,470, compared with $20,904,092 in
1919. Claims amounted to $242,199, and total expenditure,
$559,572, compared with $139,731 and $337,060, respectively.
in 1919. Total income was $584,179, while in 1919 the figure
was $336,579.
CANADIAN EXPORT CLUB OF TORONTO
.At an organization meeting of the Canadian Export
Club of Toronto, held on May 10, the following were elected
to the executive: President, B. B. Halladay, Weston; first
vice-president, L. L. McMurray, Toronto; second vice-presi-
dent, W. B. Wedd, Toronto; seci-etary-treasurer, T. M. Ker-
ruish, Toronto. Committee — F. P. Megan, Toronto; H. A.
Telfer, Toronto; W. C. McLaughlin, Toronto; W. A. Moore,
Toronto; F. E. Sheridan, Toronto; John M. Taylor, Guelph;
H. J. Waddie, Hamilton; G. AV. McFarland, Brampton; J.
S. Thompson, Oshawa; Logan M. Waterous, Bra-ntford. One
of the aims of this club is to ascertain sound principles on
which further development of Canadian export trade may
be based. It is expected that before long similar clubs will
be formed in other localities.
May 20, 1921
THE MONETARY TIMES
15
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
head officb. weyburn. saskatchewan
Branches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart. Halbrite, Midale
GrifEn, Colgate, Pangman, Radville, Assiniboia, Benson,
Verwood, Readlyn, Tribune, Expanse, Mossbank, Vantage,
Goodwater, Darmody, Stoughton, Osage, Creelman, Lew-
van, Froude and Ardill.
A GENERAL BANKING BUSINESS TRANSACTED
H. O POWELL. General .Manager
HomeBanki^Canada'
SAFETY DEPOSIT BOXES FOR RENT
For a small annual rental — about one cent
a day — you may rent a Safety Deposit Box
in our fire and burglar proof vaults. Abi-o-
lute security for Bonds, business papers
and valuables. Private access to the boxes
any time during banking hours.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s-4
LLOYDS BANK LIMITED,
HEAD OFFICE:
71, LOMBARD ST., LONDON, LC. 3.
CAPITAL SUBSCRIBED
CAPITAL PAID UP -
RESERVE FUND
DEPOSITS, &c.
ADVANCES, &c.
S353,444,900
70,688,980
50,000,000
1,731,987,765
755,395,865
THIS BANK HAS OVER 1,500 OFFICES IN ENGLAND & WALES.
Colonial and Foreign Department : 17, CORNHILL, LONDON, E.G. 3. London Agency of the IMPERIAL BANK OF CANADA,
The Agency of Foreign and Colonial Banks is undertaken.
Affiliatea Bank. : THE NATIONAL BANK OF SCOTLAND LTD. LONDON & RIVER PLATE BANK, LTD.
Auxiliary: LLOYDS AND NATIONAL PROVINCIAL FOREIGN BANK LIMITED.
TH€ M€RCHANT5 BANK
Head OfiTice : Montreal. OF CANADA Established 1 864,
Capital Paid-up $10,029,622 Reserve Funds and Undivided Profits, $9,475,585
Total Deposits (31st January. 1921) $152,211,354
Total Assets (31sl January, 1921) - $186,528,254
Board of Directors :
President
SIR H. .MONTAGU ALLAN
Sir F. Orr OrkLewis, Bart.
Hon. C. C. Ballantvne
Farquhar Robertson
Gio. L. Cains
Alfred B. Evans
Thomas Ahearn
l.T.-COL. J. R. MOODIE
Vice-President
Hon. Lokne C. Webster
E. W. Kneeland
Gordon M. McGregor
K. HOWARD WILSO.N
John Baillie
Norman J. Dawes
Ross H. McMaster
General Manager
Supt. of Branches and Chief Inspector
General Supervisor
D. C. Macarow
T. E. Merrett
W. A. Meldrum
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses who bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and souna advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 38 Wall Street : W. M. Ramsay and C. J. Crookall, Agents
London, England, Office, 53 Cornhill : J. B. Donnelly, D.S.O., Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
16
THE MONETARY TIMES
Volume 66
EXCHANGE QUOTATIONS
TRADE CONDITIONS IN CANADA
Quotations of exchange on European countries and the
United States as at May 19, 1921, with comparisons, are
given below. The Canadian figures are supplied by the
Imperial B&nk of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
Can., May 12. Can., May 19. N.Y., May 19.
London, cheque . . 446.50 445.50 400.50
France 9.33 9.62 8.90
Germany 1.82 1.92 1.70
Belgium 9.33 9.62 8.90
United States . . . 12.00 p. 11% p.
CANADIAN BUSINESS FAILURES
The number of failures in the Dominion, as reported by
R. G. Dun and Co. during the week ended May 13, 1921,
in provinces, as compared with those of previous weeks, and
corresponding weeks of last year, are as follows: —
Date.
O
D
g B "^ u w m p4
S :< J? M ;5 ;z; &;
o
EH
o
May 13 .
.. 9
9
0 13 4 0 10
27
12
May 6 .
Figures not yet available.
10
Apr. 29 .
..16
12
3 0 0 10 0 0
32
10
Apr. 22 .
..15
20
0 4 5 113 0
49
8
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways for the first two periods
in May: — •
Canadian Pacific Railway.
1921. 1920. Inc. or dec.
May 7 $2,925,000 $3,520,000 — $ 595,000
May 14 2,954,000 3,576,000 — 622,000
Canadian National Railway.
May 7 $1,763,538 $1,896,-301 — $ 132,763
May 14 1,909,558 2,073,563 — 164,005
Grand Trunk Railway.
May 7 $1,788,310 $1,548,988 + $ 239,322
May 14 1,762,926 1,664,627 + 98,299
UNION TRUST BUILDING ACQUIRED
The twelve-story building of the Union Ti-ust Co. in
Winnipeg, Lombard and Main Streets, adjacent to the Bank
of Commerce premises there, has been purchased by the
Bank of Commerce for additional office accommodation. The
sale is & result of a recent amendment of the Loan and
Trust Corporation Act of the province of Ontario, under
which the Union Trust Co. operates, restricting ti-ust com-
panies operating under Ontario charters in their investments
in office premises. For this reason the trust company de-
sired to dispose of its Winnipeg property in order to keep
within the statutory requirements, and to enable it to provide
satisfactory head office accommodation in Toronto required
for its growing business.
W. A. Rowlands, manager for Western Canada of the
Union Ti-ust Co., explained that the sale of the property
does not mean that his company is withdrawing from western
Canada. Such a plan has not for one moment been considered,
and the trust company's offices will continue in the building
as heretofore, and its business will be carried on without
intermption. The Union Trust Co. has been appointed man-
agers of the building for the Bank of Commerce, in order
to cause as little disturbance as possible to the .tenants now
lodged in the building.
R. G. Dun and Co.'s Revieio of to-morrow will say re-
garding business conditions in the Montreal district: —
"All out-going steamers are carrying considerable
quantities of grain, principally wheat and corn, with a
moderate proportion of oats and barley, and all available
space for May is taken up. The European demand, however,
has now slackened off somewhat and June shipments will
likely show some falling off. Cheese exports thus far have
been comparatively light as compared with former years.
With regard to the general trade situation there has been
little recent change. The iron market shows no revival.
Some little business is reported with manufacturers of heat-
ing apparatus and other specialties, but the large consumers,
such as the railways and those doing heavy foundry work,
are not in the market, and quotations rule easy at $36.80 for
foundry iron. A fair number of outside buyers have been
noticed among the dry goods warehouses, making mostly
moderate sorting selections, and wholesalers are apparently
not pushing sales of all lines at the moment. The downward
revisions of prices for domestic cottons, noted last week, is
confirmed, and all local mills are now practically on the same
basis. City retailers report a fair volume of shopping, but
would like to see a spell of warmer weather. Moderate buy-
ing prevails in the grocer.v line, and values show little or
no variation. High grade black teas are firmly held, but low
grade teas are easy. Japans are comparatively neglected.
There is a steady outgo of canned vegetables and fruits, and
it is figured by some that there are probabilities of some
shortage before a new pack is due. Butter, cheese, eggs and
hog products continOe to show a continued downward tend-
ency, to the great gratification of the consuming public. In
other lines there is nothing of special interest. Sixteen dis-
trict failures are reported for the week, with liabilities of
about $440,000."
WEEKLY BANK CLEARINGS
The following are the Bank Clearings for the week ended
May 19, compa-red with the corresponding week last year: —
Week ended Week ended
May 19, '21. May 20, '20. Changes.
Montreal $129,789,159 $150,037,284 — $20,248,125
Toronto 103,029,530 116,783,734 — 13,754,204
Winnipeg 52,440,659 52,776,919 — 336,260
Vancouver 13,445,304 16,080,699 — 2,635,395
Ottawa 10,992,647 12,298,231 — 1,305,584
Calgary 6,608,591 7,680,780 — 1,072,189
Hamilton 6,582,566 8,159,860 — 1,577,294
Quebec 5,234,159 8,363,498 — 3,129,339
Edmonton 5,643,993
Halifax 3,310,278 5,559,639 — 2,249,361
London 3,526,898 4,276,323 — 749,425
Regina 3,610,112 4,306,897 — 696,785
St. John 3,117,285 3,828,207 — 710,922
Victoria 2,404,047 2,906,578 — 502,531
Saskatoon 1,840,826 2,311,600 — 470,774
Moose Jaw 1,286,611 1,665,763 — 379,152
Brantford 1,249,727 1,721,209 — 471,482
Brandon 737,034 794,646 — 57,612
Fort William 804,698 841,393 — 36,695
Lethbridge 661,974 895,531 — 233,557
Medicine Hat 448,539 506,296 — 57,757
New Westminster 645,446 723,093 — 77,647
Peterboro 918,301 1,061,438 — 143,137
Sherbrooke 1,213,033 1,519,216 — 306,183
Kitchener 1,093,001 1,411,079 — 318,078
Windsor 3,668,006 3,436,552 + 231,454
Totals $358,658,431 $409,946,465 — $51,288,034
Moncton 1,178,420
Kingston 883,852
May 20, 1921
THE MONETARY TIMES
17
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 1817)
PAID UP CAPITAL ... -
RESERVE FUND -
RESERVE LIABILITY OF PROPRIETORS
AGGREGATE ASSETS 30th SEPT., 1920
-iSkj
$ 24,655,500.00
16,750,000.00
24,655,000.00
$ 66.061,000.00
$362,338,975.00
Sir JOHNlRUSSELL FRENCH, KB.E.. General Manager
357 BRANCHES and AGENCIES in the Australian States. New Zealand, Fiji. Papua (New Guinea), and London. The Bank transacts every description
uf Australasian Banliing Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET. E.C.2.
Agents: BANK OF MOSTREAL. ROYAL BANK OF CANADA.
ESTABUSHED 1879
AUoway & Champion
Bankers and Brokers
mben of Winnipeg Stock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
A. Groffrb
T. J. Macnj
K. A .Mapp
. F.C.A.
W. POMEROY V
Oswald N. Eo
T. P. Geggie
W. A. LORl.MEI
. Edwards, F.C.A.
W. Herbert Thompson
Charles E. White
J. L. Atkinson
John M. Edwards
EDWARDS, MORGAN & CO.
CHARTERED
OFFICES
ACCOUNTANTS
TORONTO ..
CALGARY . .
VANCOUVER
WINNIPEG ..
MONTREAL
CORRESPONDENTS
HALIFAX. N.S. ST. JOHN. N.B.
LONDON, ENG. PARIS, FRANCE
CANADIAN MORTG.AGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILW.AY CHAMBERS
McGILL BUILDING
COBALT, ONT
NEWYORK, U.S. A
Bureau of
Canadian
Information
THE Canadian Pa-
cific Railway,
through its Bureau
of Canadian Infor-
mation, will furnish
you with the latest reliable information on
every phase of industrial and agricultural
development in Canada. !n the Reference Li-
braries maintained at Chicago, New York and
Montreal are complete data on natural resources,
climate, labor, transportation, business openings,
etc., in Canada. Additional data is constantly
being added.
No charge or obligation attaches to this service.
Business organizations are invited to make use
of it.
Canadian Pacific Railway
Department of Colonization and Development
165 E. Ontario St.
Chicago
335 Windsor Station
Montreal
1270 Broadway
New York
Corporation Trusts
Fiscal Agent
As Fiscal Agent for Corporations
or Municipalities, this Company at-
tends to such matters as the Disburse-
ment of Dividends and Interest, the
payment of Bonds and Coupons, the
safe keeping and application of Sink-
ing Funds to their intended use.
THEBANKEKS
TRVST (jOMB\NY
Heaci Offices: MONTREAL
Authorized Capital $1,000,000
Nine Branches throughout Canada
Premises in the Merchants Bank Building in each city
18
THE iM 0 N E T A R Y TIMES
Volume 66
Ontario's 1921 Legislation Covers Broad Field
Rural Credits System Established on Recommendation of Special Commission — Insurance
Law Amended and Deposit Powers of Loan and Trust Companies Extended — Hydro-
Electric Development— Amendments to Mining Tax, Corporations Tax, and Succession Duties
ONTARIO'S legislation passed in the session which opened
January 25 and closed May 20 last affects insurance,
municipalities, public utility companies and business in
general in the province. It was the municipal field that re-
ceived the most attention, however, at least as regards the
■number of measures. The number of acts passed was 140.
To increase the province's own revenue is the object of
three measures. The Land Transfer Tax Act imposes a tax
of % of 1 per cent, upon the purchase price of lands trans-
ferred, to be collected by the i-egistrar or master of titles.
The Corporations Tax Act, 1921, extends the tax to naviga-
tion companies and increases the rate in the case of tele-
phone companies from M to Vi of 1 per cent. Some minor
changes are made in the provincial succession duties. There
are increases on the expenditure side as well, one of these
being the Mothers' Allowance Act, which makes some changes
in the mothers' pension system inaugurated last year. Pro-
vision is also made for a "Lake of the Woods Control Board,"
two members of which are to be appointed by the provinc.e
and two by the Dominion.
Municipalities and Their Finances
The municipal statutes include an amendment to the
Planning and Development Act, providing that powers may
be delegated to a commission, that from $5,000 to $10,000
may be expended over a period of three years, and specifying
the objects to be kept in view. Provision is made for the
separation of farm lands from towns and villages, by the
Municipal Board, upon application of a majority of th^
owners, with a suitable adjustment of assets and liabilities.
Organizations receiving aid from the government are re-
quired to file statements with the Bureau of Municipal
Affairs not later than January 31 each year. Municipalities
are empowered to establish air harbors or landing grounds
and to issue twenty-year debentures for this purpose. In
borrowing funds for any purpose, they may include in the
capital amount interest on temporary loans and the esti-
mated cost of the issue and sale of debentures, and any
discount allowed to purchasers of them. Another municipal
amendment provides that a by-law for establishing or alter-
ing a highway may provide that the work be deferred for
from three to fifteen years.
There are also several amendments to the Assessment
Act. One of these requires that in cities with a population
of not less than 100,000, instead of 200,000 as previously,
every person make a statement of his income to the assess-
ment commissioner. Land occupied by a distiller is to be
assessed at 150 per cent., but so much as is used in producing
industrial alcohol is to be assessed at 60 per cent, of its
value. Agents or trustees who collect income on behalf of
people resident in Ontario are required to make a return of
it. Another provision relating to income taxes is that where
income cannot be exactly stated it must be reported at not
less than that for the preceding year.
Loan and Trust Companies
One of the most important items of financial legislation,
and one which brought forth much difference of opinion,
was the loan and trust amendment. It provides that trust
companies may not issue debentures or debenture stock, but
guaranteed investments are not to be I'egarded as such.
Funds received as guaranteed investments or deposits by a
trust company are to be invested only in trustee investments.
Specific securities must be allocated for these, and quarterly
returns made to the government. The amount invested in
the company's own buildings may not exceed 25 per cent, of
the paid-up capital and reserve. Deposits must not exceed
twice the paid-up capital and reserve, plus cash, and total
borrowings are not to exceed four times this total. Pro-
vision is also made for the inspection of loan and trust com-
panies by the government.
Insurance Changes
Several important amendments are also made regard-
ing insurance. Fraternal societies are to file an actuarial
valuation and statement annually, and if the registrar deems
the assets insufficient he may require an increase in the
rates charged. Provision is also made for a reduction in
benefits. If the society fails to comply with the request of
the registrar, the latter is to appoint a committee to make
such changes as are necessary. Rates of premium on
children's lives are subject to the approval of an actuary.
The Fire Department Two Platoon Act requires that fire-
men shall be divided into two sections, working for 24 hours
alternately, or ten hours of day work and 14 hours of night
work, alternating every seventh day. A heavy fine is to be
imposed on fire chiefs who do not put this system into effect.
The Co-operative Credit Societies Act provides for the
organization of societies along the lines recommended by a
commission. Shares may be sold and deposits received, but
at least ten per cent, of net profits are to be set aside annu-
ally until a guarantee fund is established equal to the de-
posits plus the capital. There is to be a board of administra-
tion of at least five members to control the affairs of the
society generally, a board of credit of at least three mem-
bers to consider and approve of loans and investments, and a
board of supervision of at least two members to examine
the accounts.
To enable municipalities to acquire and operate tele-
phones, an amendment to the Ontario Telephone Act, 1918,
was passed. Provision is made for taking over the liabilities
of companies purchased, and for issuing debentures for pur-
chase and extensions.
The Toronto Power and Railway Purchase Act, 1921,
authorizes the city to purchase the property of the Toronto
and Niagara Power Co., and of the Toronto Electric Light
Co., Ltd., and the lines of the Metropolitan Railway within
the city limits. These are to be operated by the Toronto
Electric Commission. Power is also given to issue $7,811,295
of debentures dated December 1, 1920, payable in 20 years at
6 per cent.
The Natural Gas Conservation Act, 1921, provides that
the minister of mines shall control the sale of natural gas in
Ontario, his powers being enumerated at length. This- re-
places the provisions of the Natural Gas Act, 1919.
Several Commissions Reported
The session was also notable for the fact that an un-
usually large number of special commissions were making
investigations. These included the agricultural credits com-
mission, the university commission, the hydro-electric radials
commission, and the inquiry into timber dues. The first two
repoi-ted before the end of the session, their recommendations
being in part adopted.
A bill to amend the Ontario Railway Act, providing
that fares on electric railways must be approved by the On-
tario Railway Board, and that the terms of an agreement
between a municipality and a corporation may be varied with
the approval of the Board, but without reference to the
electors, brought forth an acrimonious discussion in the
house, and was finally defeated. Another measure which
failed to pass was Hon. W. R. Rollo's fair measure for the
establishment of fair rent courts.
May 20, 1921
THE MONETARY TIMES
Make Your Money Work to Earn
More Money for You
nple
ase in the interest
; A BC.
npany will pay you
in'gs Account instead of less'
r wages, would you? Then
your Savings Account?
nd
why refus
The Union Trust Company will pay you interest at 4% per annum
compounded regularly. Come and open your account here. If yoi
cannot conveniently call, open your account by mail. Deposit
promptly acknowledged and withdrawals by mail accurately
safely despatched.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS , iso
Winnipeg TORONTO London. Eng.
Saskatchewan General Trusts
Corporation, Limited
Head Oltice : Regina.Sask
Executor Administrator Assignee Trustee
Special attention given Mortgage Investments, Collections,
Management of Properties for Absentees and
all other agency business.
BOARD OF DIRECTORS:
W. T. MOLLARD. President G. H, BARR. K.C. Vice-President
H. E. Sampson, KC A. L. Gordon. K.C. J. A. M. Patrick, K.C.
David Low, ,M.D. W. H. Duncan J. A. .McBride
Chas. Willoushby William Wilson
E. E. iMURPHY. General .Manager
Official Administrator for the Judicial District of Weyburn
(Trustee under Bankruptcy Act)
The impanialiiy of the acts of a TRUST CO.MPANY and Us freedom
from improper influences are some of the advantages offered in
The Management of Estates
We will gladly discuss this matter with yon.
CAPITAL, ISSUED AND SUBSCRIBED ..§1,171,700.00
PAID-TIP CAPITAL AND RESERVE 1,172.00000
The Imperial Canadian Trust Co.
Executor, Administrator, Assignee, Trastee, Etc.
HEAD OFFICE; WINNIPEG. CAN,
Providing for Education
In times of prosperity make certain that the education
of your children will be provided for in case of a reversal of
fortune. By placing a trust fund with us for investment,
an income can be provided to begin at any time and be
administered under any conditions you see fit to incorporate
in the agreement. Write us for particulars.
Chartered Trust and Executor Company
46 KING STREET WEST, TORONTO
HONW A. CHARLTON. .MP.,
President. Vic
JOHN J. GIBSON, .Manag
Your friend and
The Canada Trust Company
Should you wish to have a friend act as e.xecutor
without burdening him with book-work and other
details this can be arranged by naming The Canada
Trust Company co-executor.
Competent and careful accounting is essential to
the proper management of your estate.
The Canada Trust Company
" The Executor for Your Estate. '
SHARP & HORNER
ARCHITECTS
FINANCIAL AND COMMERCIAL BUILDINGS
73 King Street West - Toronto
When You Are Among Those "Next of Kin"
When a man dies without leaving a will, the members
o( his family find themselves in much confusion: — What is
to be done about the business? How are these securities
lo be divided ?
If that happens to you, or to any friend of yours, re-
member (hat the shortest cut out of the confusion is a peti-
tion lo the Court for the appointment of
The Canada Permanent Trust Co.
as administrator of the estate. A prompt settlement follows,
— as equitable to all parties as the law permits.
The fact remains, however, that no settlement of an
unwilled estate can ever be satisfactory to everybody. Some-
one will have a lifetime of thinking, — "I know Father would
have planned things so differently."
The only way is to make your will, naming as your
Executor
The Canada Permanant Trust Co.
Your family is then assured smoothness of settlement,
security in your estate, and that just division which only you
can make.
The Canada Permanent Trust Co.
Paid-up Capital
$1,000,000
Manager, Ontario Branch:
TORONTO STREET
TORONTO
The Security Trust Company, Limited
Head Office
Calgary, Alberta
Liquidator, Trosiee, Receiver, Stock anii Bond Broken,
Administrator, Executor. General Financial Agents.
\V .M CONNACHER Pres. and , Managing Dire
Executors & Administrators Trust Company Limited
HEAD OFFICE - MOOSE JAW. SASK.
Acts as Liquidator, Trustee, Executor, Etc.
icial District of Moose Jaw. Authorized
the Bankruptcy Act
W. A. MUNNS. Manager
20
THE MONETARY TIMES
Volume 66
Immigration and Unemployment
Stoppage of Immigration as a Possible Solution — The Present Policy of Selection a Sound
One — Emigrant is Necessarily Ambitious — Continued Inflow is Essential to Canada.
By E. L. CHICANOT
UNEMPLOYMENT, arising from a combination of causes
centering about the general slump which followed the
period of post-war inflation, has undoubtedly been a serious
phase in Canadian economic life in the past winter. But that
the problem is not merely one of topical acuteness, as the
extreme amount of discussion and pessimism the situation
gave rise to would suggest, is evidenced by the fact, sub-
stantiated by government figures, that unemployment in the
middle of the past winter (December, 1920) was less than
in the corresponding month of 1914. There is no gainsaying
the fact, however, that there is no more serious problem con-
fronting the future prosperity of the Dominion, and it is one
which should be of prime interest to all those who have
the welfare of the country at heart, and which, from its
national importance, should occupy the first minds of the
land.
The government has been grappling with the problem;
the labor unions have devoted great attention to it; many
individuals, moved by a national spirit, have made sugges-
tions and given their ideas. From nearly all sources comes
the same suggestion, qualified only in operation: cutting off
the flow which is finding its way to these shores until such
time as the industrial and economic conditions of the country
would seem to warrant \.he opening of the gates to let in
the tide, unstemmed. The first step, the precursor of what
legislation it is yet impossible to prognosticate, has been the
continuance indefinitely of the regulation which necessitates
the possession of $250 for himself and $100 for each de-
pendant, in the case of each immigrant of the artisan or
laborer type, which legislation was passed in the first in-
stance only to cover the months of the winter.
The suggestion in all the argument and legislation is
that the immigrant is largely, or at least partially, respon-
sible for swelling that aggregation which, with the advent
of each winter, finds itself without employ, and a portion of
which becomes destitute and dependent. The immigrant to
our shores has been blamed for a good many things which
are not substantiated by statistics, because they are non-
existent, and it would be an interesting and valuable work
to discover, if possible, just how far exactly the immigrant
is to be held responsible for Canada's winter unemployed.
Let us glance over Canada's immigration system, and
we can make the observation with a good deal of satisfac-
tion, for, whilst there undoubtedly are a tew obvious imper-
fections, it will be found, in the main, to ^e one of the best
in the world, and is, indeed, paid frequent tribute by the
United States, which is still in a position to keenly appreciate
a good method of sifting immigrants. The careful system of
sifting screens out practically all undesirables of every
nature, and the deportees from our ports make at times sur-
prising totals. During the winter months some of our border
towns turned away as many desiring to enter Canada as they
granted admittances, and in one month one steamship com-
pany from five sailings had more than forty deportees.
With these regulations strictly carried out, those persons
who survive the several screenings may be considered emi-
nently desirable for admittance to Canadian citizenship, as
possessing the requisite qualities and having the necessary
guarantee against unemployment in the winter months. (No
person in good health need be unemployed in Canada in the
summer.) This system resulted in 1920 in a well-balanced
and highly assimilable total of immigration which would
seem to exactly fit the Dominion's needs. The preponderant
class of immigrants, according to government returns, were
intending farmers, accounting, in all, for 19,185. There were
6,821 laborers, 9,283 mechanics, 2,720 of the trading class,
538 miners, 996 female servants, and 9,721 whose callings
were unclassified.
Whilst the money requisition placed upon immigrants is
a safeguard against destitution, it will be generally found
that these people, especially in the cases of emigration from
the United States and Canada, the two countries from which
emanates the heaviest and most desirable flow, bring with
them in the shape of cash and effects an amount exceeding
the government's old winter standard of $25. Immigrants
from the United States have always had a very high average
per capita wealth on entry, authorities having placed this
as high as $1,150, though it would seem that $500 is a very
fair average. In the year 1920 each immigrant from across
the border brought to Canada an average of $371.77. British
immigration maintains a much lower per capita average, and
is more varied. Whilst the greater part of the United States
exodus consists of farmers, who, having sold their farms,
bring the proceeds with them to Canada for reinvestment,
the British tide is made up of both capitalized classes with
money to invest in privately owned and improved land, and
also those professional and working classes who have been
accustomed to living on wages or salary, brought in weekly
or monthly. The period since the war, whilst it has seen
the retu.n of many Imperial veterans previously resident in
Canada, who, from the low rate of their pay, were not of
very sound financial standing on entry, has also seen the
entry of many people from the British Isles of substantial
capital, which, in its relation to living in those islands before
the war, had seriously dwindled.
But it is not in his possession of wealth, which, without
the ability to manage, will soon disappear, that the immi-
grant has the soundest assurance against unemployment and
eventual destitution, so much as in his personal qualities and
attributes. Whatever else may be said of the characteristics
of that body of people coming continually to our shores, it
must at least be logically admitted that their calibre is such
as to be a pretty good guarantee, with the rigoroi>s sifting
carried on at landing and given a fair chance, against be-
coming a burden on the country. It takes no little pluck,
imagination, hope and in t ative to pluck ones?lf u.i by the
roots and be transplanted to a totally unknown and untried
field, where nothing is to count but personal qualities and
endeavor. It must in all reason be admitted that, apart from
the few men who wish to leave their native land for criminal
reasons, an immigrant comes to a new country in the hope
and expectation of bettering himself in a new start, and that
he believes he has the qualities of initiati\'e and perseverance
to do this. Emigration is not carried out on the spur of the
moment, but is the result of much thinking and calculation.
Since the termination of the war Canada has been in a
position to secure the very best types of immigrants. The
classes hit most seriously and acutely by the war were the
professional and so designated middle class. In the after-
math they have had to face a lowered purchasing value of
their capital and incomes, which assured comfortable living
circumstances in the days before the war, but no longer do
so. The eyes of thousands of these in the belligerent coun-
tries, more especially the British Isles, have been turned to
the British Dominions, including Canada. That we have not
already absorbed more of these people since the Armistice
has been duc? to lack of transportation facilities, and that
much of what was available was given up, owing to a none
too efficient supervision, to a less desirable class of foreign
immigration which has furnished the detained and deported.
A recent despatch states that a total of 16,766 ex-service
men and women from the British Isles have been accepted
as approved settlers under the Overseas Settlement Scheme,
and received free passage vouchers to arrive in Canada this
summer. This is overwhelmingly more than have declared
their desire to go to the other Dominions. These are the
May 20, 1921
THE MONETARY TIMES
21
The Saskatchewan Mortgage and
Trust Corporation Limited
(Trustee under Bankruptcy Act')
offer you the benefit of their experience as
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ceived, and the Bond will be made to become due on any date
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The Bonds are issued in small sums and for short terms
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The Corporation has been issuing these Bonds for near-
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14-18 TORONTO STREET
Established I85S
TORONTO
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
.Masonic Temple Building. London, Canada
Intere-st ai 4 per cent, payable half-yearly on Debentures
T. H. PURDO.M. KC. President NATHANIEL .MILLS. .Manager
London and Canadian Loan and Agency Co., Limited
EsT.\Bi.isHEi) 1873 51 YONGE ST.. TORONTO
Paid-up Capital, ?1.Z.S0.000. Kcserve Fund, 8l.oao,(Kll). Ti.tal .Vssets. *.^.0*7.2,«
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Best current rates. Interest payable half-yearly. The*e Debentures are an
Authorized Trustee Investment. Mortgage Loans made in Ontario, .Mani-
toba and Saskatchewan.
WILI.IA.M WHDI). Secretary \V. C. NOXON, .Managing Director
^"^ Ontario Loan
& Debenture Co.
LONDON Incorporated 1870
c.\rrr.\i, and reserve fund
Canada
$4,000,000
5;i
SHORT TERM (1 TO 5 YEARS)
DEBENTURES
YIELD INVESTORS
5^1
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A. .M. SMART. .Manage
rAVER 200 Corporations,
^"^ Societies, Trustees and
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Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office, No. 13 Toronto Street
Capital Account. •:«•.!>.'•«.«« Reserve Fund »;<H>.«mi,(m
Total Assets. ljt:l.lKK,SWO.«U
President. WELLINGTON KKANCIS. Esq., K.C.
Vice-President. HERBERT LANGLOIS. Esq.
Debentures issued to pay 5!^";.. a Legal Investment for Trust Funds.
Deposits received at 4"o interest, withdrawable by cheque.
Loans made on improved Real Estate on favorable terms.
WALTER GILLESPIE, Manager
Six per cent. Debentures
The Canada Standard Loan Company
520 Mclntyre Block, Winnipeg
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business .'\gent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inquiries Invited
General Manager Lieut. -Col. C. H. DORRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON, Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office - - Swift Current, Saskatchewan
TOHX R LITTLE. Managing Director
22
THE MONETARY TIMES
Volume 66
peoples a ban on immigration would shut out to the ever-
lasting loss of Canada, a^id the benefit of less shortsighted
Dominions. Immigration once shut down cannot be resumed
at a moment's notice when the government and labor unions
decide the time is fit. An intricate machinery linking a great
part of the globe must be reassembled and put into motion,
K'Hd the popular mind prepared for some time before results
can be expected. People do not decide over night to
cast the die and make a new home; it is a slow process,
long thought out and deeply pondered. According to those
in touch with the situation immigration could continue at
the present time and all available ships be filled at each
sa.iling with the most desirable types from the British Isles
and continental Europe.
As president of the only paying railroad in Canada, and
practically in the world at the present time, and one which
has been built up by immigration, has probably induced
grea.ter immigration than any other factor, and maintains a
large department for this very purpose, the opinion of Mr.
E. W. Beatty is a very valuable one. Interviewed recently
in Montreal in the matter of the Grand Trunk Railway deficit,
he stated that the salvation of the government road lay in a
wise and vigorous immigration policy. "I am afraid that
many people in Canada to-day," he s&id, "do not sufficiently
realize that the most urgent and essential need to-day is
increase in population, not only to provide traffic for the rail-
ways, but also to help pay our enormous na.tional indebted-
ness. It was an aggressive immigration propaganda that
built up the Canadian Pacific and without immigration, the
prospects of the Canadian National are, in my opinion, hope-
less. Any legislation which would stem the tide of desirable
immigration must inevitably pile up further deficits, for im-
migration is Canada's great salvation."
By all reasonable thinking, and borne out by statistics,
it is not the immigrant who is responsible for unemployment
or ultimate dependency; this entire mass, when it has under-
gone the careful sifting which the immigration system
ensures, enters the country, instigated by a keen energy
and active endeavor, and the predominant idea of bett r ng
their condition and making good. The naturally idle, the
indigent, the unamhitious, are, physically and temperament-
ally, incapable of the effort of uprooting and transplantation,
of the incidental expense involved, and of the initiative neces-
sary to attempt new things. The opportunitijs of a new
country are nothing to them, for they are incapable of making
use of such advantages as their native environment offers.
The absolute stoppage of immigration at the present
time would defeat all the objects for which the Dominion,
through her government, her railways and various other
organizations, has been straining every effort for years, and
eliminate the only factor which will eventually develop the
Dominion into that great nation which those who believe in
her future anticipate. It would keep out those thousands of
desirable citizens now planning and waiting to come to our
shores. Indirectly, it would inevitably be the cause of a
certain amount of unemployment, thus directly defeating
its own aims.
Canada's immigration policy of careful selection in force
at the present time is a good one, and the best guarantee
against the unemployment or destitution of those constituting
the flow. Following this out intelligently, Canada can grow,
more slowly, perhaps, but certainly more safely and sanely.
Canada can accommodate unlimited numbers of this high
type. Let us continue in this manner to build up Canada to
the place we believe her enormous latent wealth warrants
among the nations of the world, letting in the best peoples,
with the process of most thorough assimilation. Do not cut
off this development by stopping entirely the flow of new
blood which is necessary to her vivication.
The "Gosling" is the title of a monthly journal, publica-
tion of which has just been commenced by the Alberta Pond
of the Ancient and Honorable Order of the Blue Goose, in
the interest of ' those engaged in the business of fire and
casualty insurance.
BUILDING PERMITS INCREASE 106 PER CENT.
March Figure Indicates a Big Revival^ — Total Still Shows a
Considerable Redif^ion as Compared With Last Year
BUILDING permits issued in 56 cities showed an increase
during March, 1921, as compared with the preceding
month, the value rising from $3,216,085 in February to $6,-
610,703, an increase of $3,394,618, or nearly 106 per cent.
All provinces reported increases in this comparison, that of
$2,701,083, or nearly 214 per cent, in Ontario being the most
pronounced. Details are given below.
As compared with the figures for the corresponding
month in 1920 there was a decline of $1,549,457, or nearly 19
per cent., the value for March of last year having been $8,-
160,160. In this comparison New Brunswick, Ontario and
British Columbia showed increases, while of the declines
registered in the other sections of the country, that of $738,-
830, or 77.7 per cent, in Alberta was the largest.
DEPARTMENT
OF LABOUR
FIGURES
Nova Scotia..
•Halifax
New Glasgov
*Sydney
Nbw Brunswick..
Fredericton . . . .
*.Moncton ....
•St. John
♦Montreal \
Maisonneuve.../-
*Quebec
Shawinigan Falls.
•Sherbrooke
•Three Rivers
•Westmount
Ontario
Belleville
•Brantford
Chatham
•Fort William....
Gait
"Guelph
•Hamilton
•Kingston
•Kitchener
•London.
Niagara Falls..
Oshavva
•Ottawa
Owen Sound . . . .
•Peterborough -. .
•Port Arthur
•Stratford
•St. Catharines. .
•St. Thomas
Sarnia
Sault Ste. Marie
* Toronto
Welland
•Windsor
Woodstock
Ma
"Brandon. . . ,
St. Boniface
'Winnipeg...
■ASKATCHE
* Moose Ja
•Regina..
•Saskatoo
•Calgary
•Rdmonton
Lethbridge
Medicine Hat.
British Columbia...
Nanaimo
• New Westminster .
Point Grey
Prince Rupert.. .
South Vancouver..
•Vancouver
•victoria
Total— 56 cities. .
•Total— 35 cities.
112,230
176,850
255,825
101.780
144,750
226,460
Nil.
1.500
50
10.450
30.600
29.315
4.650
60,720
52,748
Nil.
Nil.
5,958
1.650
38.720
42,290
3.000
22.000
4,500
1,089.255
1.113,500
1,535,045
623.605
765,885
945,496
160.343
192.545
392,524
Nil.
6,800
Nil.
39.400
76,700
99.550
52.780
39.520
47.675
213,125
32.050
49,800
1.264,788
3,965.871
3.773.074
Nil.
21.800
5,700
6.265
60,590
73.953
700
24,325
24.430
4.650
15,275
22,700
1.500
19,S0O
Nil.
4,690
31,866
18.545
117,500
348,050
311.325
2,870
22,8,50
28,330
26,200
l,57,4'i5
319,690
65,460
151.635
99.360
18.250
70.450
30.300
7,750
54,915
64.950
78,800
76,910
102,775
1,000
9.000
6,500
425
13,445
65,060
2.050
8,677
9.346
3.235
14,691
49,625
13.821
67,800
63,250
5.920
6.325
14,875
37,110
157,129
61,505
5.400
13,980
26,100
737.777
1,806,.572
2.062,747
25.070
37.175
13,350
97.700
760,651
288,395
645
14,415
10.241
57.395
225,985
592.577
3,075
4,460
2,427
9,470
26.875
30,250
44.850
194,6,50
559.900
58.000
130,895
290,425
10,000
38.520
23,675
40,000
77.325
260.050
8,000
15,050
6.700
85.165
211.495
930.325
■65.400
139.000
333.400
13.683
. 60.450
600,650
2.280
9,470
11,220
3.800
2,575
5,055
544.602
725.387
710.141
,S50
6.370
230
11,500
21,750
21,250
197,510
233.945
151,699
10.114
23,075
26,458
63.480
87.767
129,233
239.443
323,160
308,477
21.705
29,320
72,794
3,216,085
6.610,703
8.160,160
2.831.156
5,789.237
7,356.91 1
May 20, 1921
THE MONETARY TIMES
Strong Convincing Evidence
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measured by the results they give. Bigger
output, steadier and longer service from machinery,
lower operating expense — all are made possible by
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In the accompanying list there is a right grade
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part. All grades are of the same high quality.
Carefully formulated to give dollar-for-doUar
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The success of countless Canadian industries
is closely tied up with Imperial Lubricants. These
testimonials from representative firms speak for
themselves.
Entirely Satisfactory
We have been using Imperial Lubricants jor
several years. We are entirely satisfied with their
Quality, and the service could not be improved upon.
— Vancouver Lumber Co. Limited.
A Grade for Every Need
We have found Imperial Lubricants perfectly
satisfactory and of very high grade. The fact that
your company makes such a large line of lubricating
oils has enabled us to make proper selections for the
different machines we have to lubricate,
— Garden City Paper Mills Co.
Imperial stocks are always available. Imperial
Engineers will gladly advise you regarding lubri-
cation. Write to 56 Church St., Toronto.
Lubricants
For Manufacluring,
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CYLINDER OILS
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Imperial Cylinder Oil
Imperial Capitol Cylinder Oil
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ENGINE OILS
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24
THE MONETARY TIMES
Volume 66
Canada's April Trade Shows Large Reduction
Exports and Imports Both Declined — In the Former Class the Most
Notable Changes Were in Wood and Paper and Iron and Steel— Sales of
Agricultural Products Abroad Were Much Larger in Volume Than a Year Ago
Come big changes are shown in Canada's trade for the first
^ month of the fiscal year. As compared with the previous
month, April exports decreased by about twenty-five million
dollars, while imports declined to the extent of twenty-seven
millions.
Analysing these figures according to class, reveals de-
clines in all imports, notable among which are non-metallic
minerals, agricultural pi-oducts, textiles and iron and steel.
All classes of exports, with the exception of textiles, showed
falling away. Here the largest declines were in wood and
paper, agricultural products and ii'on and steel.
Extending the comparison to 1920 shows similar results.
Sales of agricultural products abroad were much larger in
volume this year than in April, 1920, however. But in all
other accounts, both of imports and exports, the revision was
downward.
The following table, which was compiled by the Depart-
ment of Customs, gives the April detail: —
IMI'OKT!^ KKTEKED FOR HOME €ON«IIMI>TIOX
Agricultural and vegetable products, mainly foods
Agricultural and vegetable products, other than foods
Animals and animai products
Fibres, textiles and textile products
Chemicals and chemical products
I ron and steel, and manufactures thereof
Ores, metals and metal manufactures, other than iron and steel.
Non-metallic minerals and products
Wood, wood products, paper and manufactures
Miscellaneous
Total
Duty collected
Month of April
3.396,692
4,138.757
3.284,172
8,166,629
1 243.3e3
3.462.2.'i9
1,421,425
3,966,277
1,621,58U
2,711.494
9
10,463.979
3,236,096
2,852,131
18.730.751
1.. 539,702
15.102,494
3,117.388
4.867,764
2,226,391
2,738,361
64,875,057
$
1,870,162
1,662,787
1,253,164
1,919,033
662,182
1,390,677
702.759
4,846,393
1.099,769
1,9,50,729
17,(57,65,1
7,983,487
8,902,305
2,239,125
7,277,268
1,02H.813
10,099.356
1,960,297
4,842.336
1.721.895
1,900,310
47.953.192
Month of April
12,772.113
62,723
1,983.146
17.344
8.695,163
85.940
3,092,237
77,451
1.025,983
202,795
5,379,189
1,847,055
2,917,418
45.053
2.007,187
33,703
14.513,680
18.097
970,270
123,952
16,614.962
581,728
7,265,753
732,170
1,062.640
2.537.552
1,356,982
1 ,365,848
10.845,255
917,845
43.280.735
s
85,569
30,200
62,712
109,699
61,570
195,!)22
68,713
21,512
28,247
131.231
794.975
RECAPITUI.ATIOK
Merchandise entered for consumption .
Merchandise, domestic, exported
Total
Merchandise, foreign exported
Grand total, Canadian trade
Month of April
PU. LIGATIONS RECEIVED
BOND PRICES SHOULD STRENGTHEN
While Europe Waits for Peace. — By Pierrepont B. Noyes,
American Rhineland Commissioner, April, 1919, to June,
1920. Macmillan Company of Canada. 99 pp., $1.65. The
struggles of Europe during the past two years are here ex-
plained, frankly and clearly, by one who was in a position
to observe them closely. Not the least startling statement
in the book is Mr. Noyes' insistence that the United States
must cancel France's debt. He takes issue with Mr. Keynes'
suggestion that the British debt also should be cancelled.
It is not less interesting than such other points as the reve-
lation of the intrigues which sought to separate the Rhine
provinces from Germany, the consideration of the conse-
quences of possible French military invasion of Germany,
and the results of a fifteen years' occupation of the German
Rhine provinces.
Montreal Year Book, 1921. — The first edition of a Mont-
real Year Book in English and French has been published
by the City Chamber of Commerce. Besides illustrations and
a general description of the city's industries, it gives a list
of firms classified by products, a list of consulates and other
useful information.
The Canadian Debentures Corporation, Toronto, has
commenced the issue of a monthly letter. The first one, aftei
pointing out that a steady decline in bond prices during the
past four yeais h-.s evoked serious reflection on the part of
many holders, then describes some of the influences which
should make for a change. "History points that every great
ri'e in ccmmod.ty prces," says the letter, 'has been asso-
ciated with a decline in the price of investment bonds, with
a corresponding increasa in their yields. Similfrly, every
pronounc:d decline in commodity prices has been reflected in
advancing bond prices. Thus, the yield on long-term high-
grade municipal bends alvanced during the past thi'e? years
from AV2 to f s high as 7 per cent. This was an increase pro-
portionate to the advanced cost of living, an;' t- actable to
much the same cause." It is then contended that there is
already evidence of influence which should turn the scale.
"Prior to any advance of bond prices," it is said, "we must
have (1) deflation; (2) lower commodity prices; (3) lower
interest rates" These influences have already set in, and it
is added that the investor will be unable to secure in a year
or so the interest return now available on certain bonds."
May 20, 1921
THE MONETARY TIMES
25
DWIGHT P.
ROBINSON
& Company, Inc.
ANNOUNCES
THE OPENING OF ITS CANADIAN OFFICE
IN THE
Dominion Express Building
145 ST. JAMES STREET
MONTREAL
Complete Service
in the design md coiislrudwn of
SHOPS
FOL'NDRIM
STtEL MILLS
CHE>1ICAL PLANTS
FACTORY BITLDINCS
GASOLINE EXTRACTION PLANTS
STE.\.M POWER STFATIONS
HYDRO-ELECTRIC DEVELOPMENTS
TRANSMISSION SYSTEMS
RAILROAD SHOPS
LOCOMOTIVE TERMINALS
P.\SSENCER TERMINALS
HOL'SINC DEVELOPMENTS
OFFICE DIILDINCS
HOTEI^
HARBOR DEVELOPMENTS
DWICHT P. ROBINSON « CO.
«eSTINGMOUS£. aiURai. KERR V OO- l-c
Our services are available for both design and construction
or construction alone from the plans of other engineers
DwiGHT P. Robinson & Companil^
Incorpouated
With which is consolidated
WESTINGHOUSE, CHURCH, KERR & CO., Inc.
ENGINEERS AND CONSTRUCTORS
145 ST. JAMES STREET
MONTREAL
NEW YORK
YOUNGSTOWN
LOS ANGELES
26
THE MONETARY TIMES
Volume 66.
DIVIDENDS AND NOTICES
BANK OF MONTREAL
DEBENTURES FOR SALE
CITY OF TORONTO
Notice is hereby given that a DIVIDEND of THREE per
cent., upon the paid-up Capital Stock of this Institution, has
been declared for the current quarter, payable on and after
WEDNESDAY, the FIRST DAY OF JUNE next, to Share-
holders of record of 30th April, 1921.
By order of the Board,
FREDERICK WILLIAMS-TAYLOR,
General Manager.
Montreal, 22nd April, 1921. 542
THE CANADIAN BANK OF COMMERCE
Dividend No. 137
Notice is hereby given that a dividend of Three per cent,
upon the capital stock of this Bank, being at the rate of
twelve per cent, per annum, has been declared for the quarter
ending 31st May next, and that the same will be payable at
the Bank and its Branches, on and after Wednesday, 1st
June, 1921. The transfer books of the Bank will be closed
from the 17th May to 31st May next, both days inclusive.
By Order of the Board,
JOHN AIRD,
General Manager.
Toronto, 22nd April, 1921. 545
UNION BANK OF CANADA
DIVIDEND No. 137
Notice is hereby given that a dividend at the rate of
10 '/f per annum upon the Paid-up Capital Stock of the Union
Bank of Canada, has been declared for the current quarter,
and that the same will be payable at its Banking House, in
the City of Winnipeg, and also at its branches, on and after
Wednesday, the first day of June, 1921, to shareholders of
record at the close of business on the 16th day of May next.
The Transfer Books will be closed from the 17th to the
31st day of May, both days inclusive.
By order of the Board.
Winnipeg, April 19, 1921.
H. B. SHAW,
General Manager.
Bank of Hamilton
DIVIDEND NOTICE
Notice is hereby given that a Dividend of Three per
cent. (Twelve per cent, per annum) on the paid-up Capital
of the Bank, for the quarter ending 31st May, has this day
been declared, and that the same will be payable at the Bank
and its branches on 1st June next to shareholders of record
at close of business. May 20th.
$5,000,000 Serial Bonds
Sealed tenders, endorsed "Tender for City of Toronto
Bonds," addressed to Thomas L. Church, Esq., K.C., Mayor
and Chairman of the Board of Control, will be received by
the undersigned until 12 o'clock noon (daylight saving time),
Wednesday, 1st June, 1921, for the purchase of $5,000,000
serial bonds, issued on account of the acquisition and re-
habilitation of the Toronto Railway Company.
Full details as to the purposes for which the bonds are
issued, and amounts maturing annually, together with
financial statement of the City, will be furnished on applica-
tion.
The legality of the issue has been approved by Mr. J. B.
Clarke, K.C., Toronto, and his favorable opinion will be en-
graved on each bond.
The bonds are an obligation of the City at large, are
issued in coupon form, with provision for registration of prin-
cipal, and are of the denomination of $1,000.
They are payable both as to principal and interest in
Toronto, and carry interest at the rate of 67r per annum, pay-
able half-yearly. They are dated June 1st, 1921, the first
maturity date of principal being June 1st, 1925.
Engraved bonds will be ready for delivery on or about
June 10th, 1921. Delivery and payment, with accrued interest,
are to be made at the office of the undersigned.
Tenders will not be received for any part, but must be
for the entire issue.
A certified cheque, payable to the undersigned, for 2%
of the par value of the bonds tendered, must accompany the
tender.
Tenders specifying for bonds other than those herein
described, or containing conditions varying from the above,
will not be considered.
The right is reserved to reject any or all proposals.
GEO. H. ROSS,
Commissioner, of Finance.
Treasury Department,
City Hall, Toronto, Canada, May 12, 1921. 562
By Order of the Board.
Hamilton, 18th .4pril, 1921
J. P. BELL, General Manager.
566
CITY OF SASKATOON
DEBENTURE ISSUE— $204,000
TIME FOR RECEIVING TENDERS EXTENDED
The time for receiving tenders on above-mentioned de-
benture issue has been extended to 12 o'clock noon. June 6th,
1921.
A. MacG. YOUNG,
Mavor.
ANDREW LESLIE,
City Commissioner.
Saskatoon, May 16th, 1921. 567
C. D. E, Wilson, of Montreal, who rented a furnished
cottage on Lake St, Louis for the season of 1918, has been
condemned by the Quebec Courts to repay to the Westchester
Fire Insurance Co. of New York, the sum of $614 which the
company had paid the owner on a fire insurance policy. The
fire took place on the night of May 12, when Mr, Wilson
arrived to take possession.
May 20, 1921
THE MONETARY TIMES
B
■
14 -Day Sea Trip on the Placid
Waters of St. Lawrence River and Gulf
All the fascination of an Ocean voyage— without its
monotony or discomfort.
A boat trip of a thousand miles through Lower St.
Lawrence and Gulf of St. Lawrence. From Montreal and
Quebec to St. Johns, Newfoundland — the modern Steamship
"Manoa" (6,000 tons displacement) passes down the pic-
turesque Gaspe Coast — giving a "close-up" view of the
impressive Perce Rock — a huge mass of red sand stone
pierced by the curious apertures from which its name is
derived — Majestic, beautiful — its inaccessible crags, the home
of myriads of beautiful sea-birds.
A Cruise in Cool Latitudes
The heat and dust of cities are left far behind — you enjoy
the tonic qualities of bracing sea air — plus the comfort of
de luxe stateroom accommodation, including parlor-rooms
with bath en-suite.
The "Manoa " touches at Gaspe and at Charlottetown —
and docks for three days at St. Johns to permit of visiting
the many points of interest in Newfoundland.
Cruises commencing at Montreal on June 1 1th and 28th,
— July 15th— August 2nd and 19th.
Write for full information.
Canada Steamship Lines Limited
28
THE MONETARY TIMES
Volume 66.
"INVESTING" IN OIL
Fortunes Sunk in Oil Far Exceed Those Made Out of It —
Companies May Never Own Property, or Drill,
or Strike Oil
By Victor Lauriston
AT the registered-letter wicket in a small city post office,
a very much excited negro workman thrust between the
bars a couple of sealed envelopes.
"You'll git dem off rightaway, mistah," he urged.
"Dey'll git dah rightaway, sho'?"
"Yes," the clerk assured him, "they-U get there just as
quick as the mails can carry them."
As the darkey departed, the clerk made a wry face.
"Don't it beat the Dutch?" he commented.
The addresses on the two envelopes told their own story.
One went to an insurance office in Baltimore. The other to
the "World Wonder Petroleum Producing and Refining Co."
— somewhere in Texas.
It didn't require a Sherlock Holmes to deduce the
significance of the transaction. The colored man was "in-
vesting" in oil stock. To finance his investment, he had bor-
rowed money on his insurance — probably money patiently
saved and put away during the greater part of his work-
ing lifetime. And in order to "invest" to the best advantage,
he had to buy "World Wonder Petroleum Producing and Re-
fining Co." stock at once; because on Saturday it would
advance 20 cents a share.
Shares Didn't Advance
You won't find World Wonder stock listed on the ex-
changes of New York, Toronto, Pittsburg or anywhere else
that legitimate stocks are dealt in. You won't even find it
listed on the curb. Probably after next Saturday you'll
never hear of it again. It's merely one of a myriad "fly-by-
night" oil stocks that are peddled nowadays to credulous "in-
vestors" eager for easy money. It doubtless promises $100
or perhaps $1,000 return for every ten cent share. I don't
know as to that, for I haven't seen the prospectus — but I've
seen lots of others, and I know how they read, .^nd if I
know anything about the game, William Jefferson Washing-
ton Jackson firmly believes that the World Wonder Petroleum
Producing and Refining Co. is going to drill in a 100,000-bbl.
gusher inside of a few days. For hasn't it got a lease on
the very dome of the anticline and right next to the famous
Texas No. 1, or some other well equally reputable.
If I wanted to get rich quick, I wouldn't bother with the
money that's made from oil production — I'd be satisfied
merely to have the far larger sums that have been "in-
vested" in oil stocks since Colonel Drake drilled his first well
at Titusville. In fact. I'd even be satisfied with the money
that has been "invested" in hopeless Canadian oil ventures
since J. H. Williams drilled the first Canadian oil well at
Oil Springs in the latter 50's. Nay, I'd be amply satisfied
to garner the sums that have been "invested" in Canadian
oil schemes that were absolutely and irredeemably hopeless
from the start.
For there are all grades of oil speculations, yclept "in-
vestments"— apart from the solid, tangible investments such
as Imperial Oil, which have real assets behind them and
pay a modest two per cent, or thereabout on their high-
priced shares.
A great many of the oil stocks now being peddled are
absolutely hopeless. This is particularly true of the Texas
schemes. Texas has been a great oil producing state; but it
has also produced a tremendous crop of worthless oil stocks,
backed by "leases" where oil never possibly could exist, and
never will be found. For the actual oil production, huge
though it is, is secured in a limited area, or a succession of
limited areas; and the wide spaces of dry territory interven-
ing are good for nothing except the floating of worthless
schemes designed to separate the suckers from their money.
Some Do Not Even Drill
These stocks represent the simplest and probably the
commonest form of oil invesment — the companies which never
drill and never intend to drill because they know that drilling
is hopeless. There are, of course, the still flimsier ventures
where the company is merely a charter, or even merely a
name; and the leases, prospects and drilling operations dis-
cussed in the flamboyant pi'ospectus are merely figments of
the promoter's imagination. These ventures are downright
swindles; nothing less.
From the downright swindle, the oil "investment" shows
gi-adations clear through to the honest and legitimate venture
which may succeed or may fail, but involves an element of
risk and speculation that renders its shares undesirable as
an investment for widows and orphans. For at its very
best, oil production is speculative and uncertain, except m
proven fields. Even in the proven field there is an element
of risk. But in the proven field, the negro roustabout, the
charwoman with a few dollars saved, the street sweeper and
the retired minister cannot buy stock at 10 cents a share,
simply because it will be held by men who understand the
possibilities and intend to realize for themselves.
In the downright swindle class of oil "investments,"
previously referred to, the men who make money are the
promoters; when they have made a sufficient killing they
simply vanish from the landscape, to renew their activities
a little later under some other alluring name at some differ-
ent address.
Some Don't Know When to Stop
Perhaps the next gradation is the venture which actually
drills for oil. This class of "investment" may in turn be
subdivided into others. For instance, there is one venture
in Ontario right now that has drilled clear through the
sedimentary formations into the granite, and is still pegging
away. Of course, all hope of securing oil is exhausted when
the igneous rocks are reached ; since oil is found only in sedi-
mentary formations. There are, too, ventures located in
The Trust
ee Company
of Winnipeg
Ltd.
332
MAIN STREET
M. J. A
M. DE
LA GICLAIS
Managing Director.
See us for investments
rates of interest.
Our Agency Departmer
your affairs in our charge.
n allocated or
t is very act
guaranteed loans at a
ve. While out of tow
tractive
n, leave
GRANT, WHYTE & CO., LTD.
STOCKS AND BONDS
HIGH-GRADE INDUSTRIAL SECURITIES
WINCH BUILDING - - VANCOUVER. B.C.
WE have 450 good businesses for sale in the central
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Store to a small Confectionery
If you want a business in Alberta you want us.
WHYTE & CO., LIMITED
Baaineas Brokers
111 Pantages Building - Edmonton, Alberta
Fidelity Securities Corporation, Ltd.
STOCKS, BONDS AND ALL HIGH-GRADE SECURITIES
Specializing in Dividend-paying Oil Stocks
5 1 8 Standard Bank Building, Branch Offices-
„ Winnipeg
Vancouver, D.<.. Victoria. B.C.
May 20, 1921 THE MONETARY TIMES
Must the Printing Industry
Follow the Building Trade
to Stagnation?
An unheard of condition exists in the building trade in Canada.
Everywhere there is a crying need for homes, but practically none are being built.
Why ?
Because the cost is considered prohibitive. Labor and materials are so high that the
man who contemplates building a home for himself counts the cost, and decides he
cannot afford it.
The result, of course, is increased demand for houses to rent-and higher rents-
and no one knows the end.
We don't want this stagnation to occur in the printing industry, but employers are
right now faced with a demand from the International Typographical l^nion that the
-»4-hour week shall be the basis for all wage scales, and the Toronto Unions are
demanding a wage of $44 per week. This will add 36 per cent, to the wage bill of
Toronto job printers and publishers, other than those of daily papers.
Does anyone feel that under present economic conditions an increase from 73 cents
per hour to $1.00 per hour for printers is justified?
Does anyone believe that the effect of such an increase in the jabor cost of printed
matter, can be other than harmful to the industry as a whole ?
Printers can only find employment so long as users of their product continue to buy.
Will there not come a time when— if costs keep on mounting— printers will find them-
selves in the same position as many highly skilled carpenters, bricklayers, plasterers
and painters are now in. They are willing and anxious to work but cannot find a
market for their services.
This is a matter in which the buyers of printing-the subscribers to this and other
papers-and the advertisers-are vitally concerned. An increase of 36 per cent, in
the wage bill of publishers would necessarily involve an increase in subscription
price and advertising rates.
That is plain.
Publishers would be verv reluctant to add one cent to the present subscription price
of their papers or to effect an increase in advertising rates, but they cannot possibly
absorb any such addition in wage costs as is proposed, and stay in business.
An expression of the opinion of the readers of this paper on the Union's proposals,
involving an increase of 36% in the labor cost of printed matter is asked. W .11 you not
write a letter to the editor (not for publication) telling him your view of the situation.
Don't let us drive the printing industry into the condition of the building trades
This uatemct h published by a,ul has received the endorsatio., of the Toronto publishers who are members of^ the
Canadian National Newspapers and Periodicals Association
including THE MONETARY TIMES OF CANADA.
THE MONETARY TIMES
Volumi 6t
territory where neither the formations nor the geological
structure favors oil. Here, again, the prospects are hopeless;
but the company can, on the strength of its drilling, sell
stock a great deal more readily than otherwise. For the
credulous speculator, any hole in the ground with a drilling
rig over it is a prospective gusher.
Next in order come the ventures drilling in territory
where there are actual prospects of oil, as indicated perhaps
by surface seepages and favorable geological conditions.
Here the company stands a chance of securing production.
But if production is secured, the investor's returns still have
to run the gauntlet of the men at the head of the company.
If these men are dishonest, the returns can be readily ab-
sorbed in office expenses, commissions, travelling expenses,
directors fees and other disbursements more or less legiti-
mate, which leave the company with a treasury too empty
to pay dividends.
Pitfalls Near Success
Granted the honesty of the management, there are still
pitfalls even after a producing well is brought in. The capi-
talization may be too heavy to permit of adequate returns.
There is one company in the Okotoks field southwest of
Calgary which has a good producing well; but it also has a
capitalization of $20,000,000. It would take a good many
large wells to begin to pay dividends on such an investment.
There is, too, the risk that production, once secured, may not
be maintained. Quite a few ventures starting with a good
initial production peter out after a few days. Only the
initial 100 barrel or 1,000 barrel production is chronicled,
however; and disappointed shareholders wonder why they
receive no dividends. Often a well is rated at 1,000 barrels
a day on the strength of a pocket of oil that may gush at
that rate for an hour or two and then fails absolutely. And
even the best producing wells are apt to decline rapidly after
a few days production.
The oil business, in so far as it is within reach of the
ordinary man, is a gamble. If he recognizes it as such, well
and good. In isolated cases he may make good money; as a
rule he loses. The isolated winnings, however, serve to keep
the gambling spirit alive. But it is only the most exceptional
cases where the small speculator wins for he has to run
gauntlet of so many risks — the honesty of the management,
the chance of a holeless or poor location, the chance of failing
production, the danger that, with big winnings, the men at
the head of affairs may freeze out the small stockholders.
Oil is a game for the man who can afford to lose, not for the
man who must win to repay the loan on his insurance.
As, for example, William Jefferson Washington Jackson.
CONSOLIDATION OF THE RITHET INTERESTS
On the fiftieth anniversary of the foundation of R. P.
Rithet and Co., Ltd., of Victoria, B.C., it has been decided to
amalgamate what has been generally known in British
Columbia coast business circles as the Rithet interests, which
consist of the wholesale, importing, shipping and insurance
firm of R. P. Rithet and Co., Ltd., the Victoria Wharf and
Warehousing Co., Ltd., and the Rithet Proprietary Co., Ltd.
The Victoria Wharf and Warehouse Co. was formed to
operate the wharves and warehouses, which have been, and
ai"e now, such an important feature in connection with the
shipping of Victoria, and which were inaugurated by the late
R. P. Rithet in 1882. At a later date the Proprietary Co.
was organized as the holding company of the above, and
various other interests owned by Mr. Rithet. On and after
the 22nd of April, the companies will be amalgamated, and
the new company which has taken these over will be known
as Rithet Consolidated, Ltd., which will carry on the business
formerly operated by the other companies, which will be
voluntarily wound up with the formation of the consolidated
company. The personnel of the new concern will be the same
as under the old companies, and no difference will be made
in the general administration of the present business.
PREMISES TIE UP BANKING CAPITAL
Sixty Million Might be Released for Commercial Purposes by
Creating Holding Companies
By R. W. Hunter, C.A.,
Vancouver, B.C.
CANADA has reached a point in her history as a nation
which may be likened to that of the United States after
the civil war — she is on the eve of great industrial and
economic and financial expansion. There lies before her the
vista of wealth which lay before our sister nation to the
south, when North and South had become one.
It goes without saying that for expansion capital is
required. Eventually there will flow from different parts of
the world capital to develop Canada's industries, and her
banks will be strained to their utmost to keep up with the
calls made on them during the expansion. This state is
not in the very immediate future, for complete readjustment
must have first been brought about.
Sixty Million in Bank Premises
An examination of the combined balance sheets of the
Canadian banks for the month of November reveal.s the
fact that of the moneys subscribed by the shareholders and
of the moneys accrued to their credit by way of undivided
profits or reserves there is a total amount of $60,467,669 in-
vested in fixed assets, which are not available for trade pur-
poses, such assets being the real estate and buildings used
as bank premises. It is generally known that the real pre-
sent day value is greatly in excess of the amount at which
they appear on the books.
If any way could be arrived at for releasing these funds
invested in bank premises there would be made available for
commercial purposes not only $60,000,000 but an amount
vastly in excess of that. Can a way be found which will ac-
complish this and yet without injuring the financial stability
of the banking institutions?
The following suggestion is made whereby this could be
done wholly or in part according to what would be com-
patible with the financial safety of the institutionss. The
plan given is outlined only, as a great many governing fac-
tors which cannot be determined now would affect any de-
tailed plan put forth at the present time.
Create Premises Holding Company
Each bank would create a Bank Premises Holding Co.
owning all the shares, the issue of which would be nominal
only, in such company. This holding company would pur-
chase the bank premises from its particular bank at a pre-
sent day conservative valuation, paying the bank therefore
by funds derived in the following way: The holding com-
pany would issue stock or permanent bonds to either the
full value of to such percentage as would be determined.
The bank would pay its holding company a rental which
would be a percentage of the value. Such percentage would
be of sufficient amount to provide for repairs and renewals,
administration expenses and interest on the bonds. The
question of depreciation would also have to be considei'ed.
It is not advisable to go into the form of security to
be issued, treatment of additions to bank premises and other
matters, as such are not capable of being determined until
the plan be gone into more fully. The place of sale of
the bonds or stock would be governed by the exchange situa-
tion of the day. Naturally amendment of the bank act and
other legislation would be necessary.
The large amount which could be made available in
this way can be appreciated if one only takes into con-
sideration the amount at which the premises appear on the
balance sheets of the banks, viz, $60,467,669.
Not only would the people of Canada benefit by put-
ting into operation such a plan. The shareholders of the
banks would also benefit as the rate of interest payable on
the bonds would be less than the rate of interest obtained
when the money is lent to the banks customers.
.May 20, 1921
THE MONETARY TIMES
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii^
I Union Assurance Society |
W. Limited g
I OF LONDON, ENGLAND 1
^= ijirjniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiuiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiin =^
I A Bit of History |
= iiuiiminniiiniiiuiiiuiiiiiiiiiiiiiiiiiiiiiiiinniiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiniiNiiiiiiiniimwiiiiiiiiHiiiuiiiuiiiiiiii^^^^ ^=
M Instituted in the Reign of Queen Anne, A.D. 1714, in that year the M
= X OLD UNION in the City of London commenced granting insurance against fire. ^
= The Canada Branch was established November, 1890, under the present =
^ management. ^
= In the interval Canada has passed through some fiery experiences, as ^
= may be gathered from following list of conflagrations: — =
Toronto 1895 (three
fires)
loss
$2,500,000
UNION
PAID
$45,000
Windsor. N.S.
1897
loss
$1,500,000
UNION
PAID
$11,000
New Westminster, B.C.
1898
loss
$2,000,000
UNION
PAID
$41,000
Ottawa-Hull
1900
loss
$9,500,000
UNION
PAID
$180,000
Montreal
1901
loss
$3,500,000
UNION
PAID
$68,800
Sydney, N.S.
1901
loss
$400,000
UNION
PAID
$11,000
Ottawa
1903
loss
$1,000,000
UNION
PAID
$10,000
Toronto
1904
loss
$10,500,000
UNION
PAID
$174,600
Three Rivers, P.Q.
1908
loss
$2,000,000
UNION
PAID
$5,500
Fernie, B.C.
1908
loss
$4,000,000
UNION
PAID
$31,000
Campbellton, N.B.
1910
loss
$2,000,000
UNION
PAID
$47,000
Northern Ontario
1911
loss
$1,450,000
UNION
PAID
$21,000
Northern Ontario
1916
loss
$2,000,000
UNION
PAID
$47,000
In the thirty years ending 31st December, 1920, Union paid $6,261,976.61
to Canadian policyholders for fire losses.
Moral: Insure in the UNION.
i>iiiiiiiiiiiiiit[iiii«iiii;[iiii:lin;ijir[iiiiiiiiiiiiiiiiiiiii]uiiiii:iii;i![nii[iiiiiiiiiiiii:[:iiiii!i:iiiiiiuiiiiiiiiiiiiiiiiiiii!ni:ii[iniiiimii(jii^
CANADA BRANCH:
Cor. St. James & McGill Streets, Montreal
T. L. MORRISEY. Resident Manager
NORTH- WES T BRA NCH :
364 Main Street, Winnipeg
THOMAS BRUCE, Branch Manager
AGENCIES THROUGHOUT THE DOMINION
32
THE MONETARY TIMES
Volume 66.
QUARTER BILLION LOSS, WHO'S RESPONSIBLE?
Careless Individual Chiefly — Canada's Yearly Fire Toll
of Property and Lives
By J. Dower
AS each working day ends in the Dominion of Canada,
fire has destroyed one life and over $70,000 virorth of
property."
It is some fifty-four or five years since The Monetary
Times first drew attention to this economic loss, and the
above statement is proven by the records given over this
long stretch of years. This loss affects every person, it
affects finance, commerce, life insurance, fire insurance. For
many a year the insistent editorial pleas of The Monetary
Times, for a reduction of this wastage, were the only ones
heard in the Dominion, then other pens took up the work, and
in the past decade provincial governments appointed fire
marshals, the Commission of Conservation appointed ex-
perts, clean-up days were inaugurated. Children were taught
in schools regarding the fire demon.
But from the volume of losses being recorded this year
is seems necessary to go further into the matter. Going over
The Monetary Times' record for the past ten years we find
that property to the value of $232,000,000 has been destroyed
and 2,,'500 lives have been lost. In this period fire insurance
companies have paid $1.56,000,000, leaving $76,000,000 as
absolute loss unprovided for.
Greatest Loss Not Recorded
To this must be added these greater losses: — (1) Value
of lives lost; (2) lost business; (3) lost wages; (4) lost good-
will; (.5) disrupted organizations, etc.
To glance p..t the figures in next column shows the prob-
lem is a large one, and one that must be solved.
For a period of ten years Canada's fire loss has averaged
month by month $2,000,000, exclusive of forest fires, and
other unreported destruction. The figures for the 10 years
follow:
The Monetary Times' Paid by insurance
record of fire losses. companies. Deaths.
1911 $ 21,4.59,575 $ 10,936,947 317
1912 22,900,712 12,119,.581 203
1913 26,346,618 14 003,759 236
1914 24,321,012 15,347,284 175
1915 13,670,527 14,161,949 142
1916 20,487,509 15,111,133 531
1917 20,086,085 16,379,101 207
1918 31,815 844 19,359,252 241
1919 23,207,647 16,679,355 225
1920 27,371,574 21,945,114 224
$231,667,103 $156,043,475 2,501
Careless Individual a Criminal
Some things this loss could do every month: (1) Pay
10,000 men's wages at $50 per week; (2) build 400 homes at
$5,000; (3) reduce cost of living by $2,000,000.
Canada has efficient fire fighting apparatus, its fire -
prevention campaigns are excellent; wherein then lies the
cause of a loss which shows no diminution in amount? The
answer seems to be: "The careless individual." What shall
be done by him remains for Canada's citizens to say, but in
too many cases fires are crimes, and those who permit them
to start should be labelled criminals.
For several days now the daily papers have carried re-
ports of towns aJmost destroyed by fire, therefore it would
seem now is an appropriate time to start to eliminate by con-
structive means some of the enormous losses, for Canada
needs every dollar and every productive agency preserved and
kept in full running order.
THE
London & Lancashire
INSURANCE COMPANY LTD.
LONDON
AND
LANCASHIRE
INSURANCE GOMnmr.
EXTRACTS FROM STATEMENT
for the Year 1921
Fire Premiums -
Accident Premiums
Marine Premiums
$18,341,247
8,733,362
13,347,578
$5.00 taken as the equlvale
of £1 Sterling.
Total Premiums -
Interest ...
Taxes Paid and Accrued
Total Assets
$40,422,187
$1,576,197
$2,868,465
- $115,784,320
ALFRED WRIGHT, Manager and Chie'f Agent -For Canada
A. E. BLOGG, Secretary,
14 RICHMOND STREET EAST, TORONTO
MONTREAL
Colin E. Sword, Manager
146 Notre Dame St. West
VANCOUVER
William Thompson, Manager
London Building
WINNIPEG
W. Blake, Branch Manager
290 Garry Street
563
May 20, 1921
THE MONETARY TIMES
•MiiiiiiiiiiiiiiMiiiuiiiiiiiiiiiiiiiiiiiiiiiniiiiiiiiiiiiiiniiMiMiniiniiniiiiiiiiiiiiuiMiiiiiiiiiiiiiiiiiiiBUiiiiiiiiiiiiiiiiiiiiiiiiiiiiuniiiniiiiiiiiiiiiiii!^
I CHARTERED ACCOUNTANTS I
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HENRY BARBER & CO.
EstabUshed 188S
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Ra
6 King Street West
ay Building,
TORONTO
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON - ONTARIO
Established 1S82
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Chambers
Winnipeg, Man.
W. A. Henderson, C.A.
Cable Address •■Qrmlie
KENNETH BOWMAN
Chartered Accountant
(Successiir to Baldwin. Dow .<■ Bowman)
EDMONTON
ALBERTA
CHARLES D. CORBOULD
Chartered Accoaotant and Auditor
ONTARIO AND MANITOBA
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Correspondents at Toronto, London, Hng-,
Vancouver
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada Bldg., Saskatoon, Sask.
\V. A Hawi)|;s.
C.A. F.C.A. HnRia
nd and
\V,ilesl.
l--, H. Kliii). C.A
BAWDEN
KIDD &
CO.
Charter
Ed Accountan
s
CENTRAL BUILDING, VICTORIA
, B.C.
Br.DC
l> at Naaaimo. B.C.
Teletjrapli
c and Cable Address
•Nedw
lb.' Victoria. B.C.
Crehan, Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
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D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
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AUDITS
FACTORY COSTS
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AND AT:
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CLEVELAND
Arthur E.
Phillips
& Co.
Charters
d Accountants 1
508-509 Electric Railway
WINNIPEG
C.ible Address— Unr.i
Chamber*
Man.
•el.'
SERVICE
Thorne, Mulholland, Howson & McPherson
3420
CHARTERED ACCOUNTANTS
Factory Costs and Production
Bank of
Hamilton Bldg.
TORONTO
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
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Telephone Main 7014
LUMSDEN BUILDING - - TORONTO, CANADA
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Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
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CLARKSON,
GORDON & DILWORTH
Charte
R
red Accountants, Trustees,
eceivers. LiQuidators
Merchants Bank Btdg..
15 Wellington Street West
Toronto
F.. R. C. Clarkson
H. 1). Lockhart Gordon
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THE MONETARY TIJMES
Volume 66
REGISTRATION OF TRADE MARK
Company May Duplicate Product, but Cannot Use Name
When Latter is Registered Trade Mark
"rpHE word 'Castoria,' in connection with the manufacture
-■■ and sale of a senna laxative for infants and children,
has been held by the courts not to be the generic name of a
medicinal preparation, but an arbitrary designation, and as
such may be the subject of a valid trade mark, which, being
registered in Canada, protects the right to the sole use of
the word in Canada during the life of the trade mark,
although the patent rights to the preparation and sole right
to the use of the word in the United States have expired,
and the product has not been protected by a patent in Can-
ada." Such is the decision of the Quebec Court of King's
Bench in the case of American Druggists' Syndicate, Ltd.,
vs. The Centaur Co. The written judgment of Justice Carroll
contains much interesting information as to the distinction
between trade marks and patents, some of the paragraphs
being as follows: —
"Nobody will contest to the manufacturer the right to
put his own name on his products; neither will anyone deny
that no other person may usurp such name. No definite legal
enactment is required to permit a manufacturer to place his
own name on the products of his industry, but for diverse
reasons and in his own interests, instead of placing his name
on his products so as to certify their origin, he will some-
times use some sign or mark. Such will consist either in
several letters of the alphabet, in a word or in certain signs,
which belong to nobody in particular and are public pro-
perty, but which, by thus being applied on the manufactured
article, will allow it to be distinguished or differentiated from
other similar products. The particular manner in which a
trader will inscribe his name on goods of his personal make
may, to all intents and purposes, confer to that name the
character of a mark.
"Considered in its object, the trade mark, to be con-
sidered such, requires no particular labor or pains. It has
of itself no literary, artistic or industrial worth, and gives
none to the object to which it is affixed. In that respect it
in no way compares with patents which properly cover crea-
tions of the intelligence, and by virtue of which the law
grants to the patentees exclusive rights for a given period
of time.
Trade Marks and Patents
"It is impossible, as I said a moment ago, to assimilate
a trade mark and a patent. The object covered by the patent,
whether it be a literary or artistic work or an industrial
device, has a great value. The mark, in itself, has no value;
its only utility is that of a certifiacte as to the origin or
source of the product to which it is affixed. Employed by
another, it ceases to be the expression of truth or genuine-
ness.
"The patent differs from the trade mark in that a new
substance i-esults from the invention. The State, to en-
courage the patentee and reward his industry, grants him
the privilege, during a given period, to manufacture the
article invented. That privilege is not, however, conferred for
an indefinite time, as it would then become a monopoly. Such
is not the case as regards the general trade mark, which,
once it is registered, endures indefinitely, R.S.C. 1906, ch. 71,
sec. 16, or as regards a specific trade mark, which endures
for a peirod of twenty-five years, and may be renewed by
the proprietor thereof or his legal representative for an ad-
ditional period of twenty-five years, and so on without limi-
tation. (Sec. 17.)
"Appellant company may well manufacture a product
similar in its constituting elements to that which respondent
company offers for sale, but it is precluded by law from
giving it a name, the exclusive use of which belongs to said
respondent company.
"In order that there be no illegal competition between
two commercial products of the same nature, their respective
names or designations must be sufficiently distinct that the
purchaser may not, as I have already said, be led to mistake
one for the other."
AGENT FRAUDULENTLY WITHDRAWING DEPOSIT
Power of Attorney to Agent Protects Bank — Principal
Suffers Loss Where There is Ambiguity in Wording
IN an appeal to the Quebec Court of King's Bench in the
case of Robidoux v. The Royal Bank it was held that
one who gives a power of attorney to collect funds to a
solicitor who deposits the funds collected in his own bank
and draws the money out later for his own use, cannot re-
cover as against the bank, there being no privity of contract
between the giver of such power and the bank.
In his decision Justice Pellotier says: —
"It is admitted by all parties that the advocate, A. D.,
who had made the deposit at the bank, could withdraw the
money in the same manner as that in which he deposited it,
that is to say, by cheques conforming to the deposit slip and
the entries in the bank books. But the appellant says, with
much plausibility at first sight, that 'when the bank received
this deposit made by my solicitor as my attorney, it was at
the same time notified of the terms and of the extent and
limitation of the powers my mandatary had.' This contention
is well founded in fact. When A. D. deposited the cheque the
respondent bank received at the same time, and kept in its
custody, the appellant's power of attorney. The decision of
this case rests then entirely, in my opinion, upon the inter-
pretation that should be given to the terms of this power of
attorney, the text of which is reproduced above, and which
was signed by the appellant in the presence of an agent of
the respondent, Harwood. If, by this power of attorney, the
mandate of A. D. was at an end after the deposit was made,
the bank was not justified in permitting A. D. to withdraw
as attorney, by cheque payable to his own order, moneys
which did not belong- to him. But the power of attorney,
which, at first sight, I would believe conclusive in favor oi
the contentions of the appellant, is susceptible of two inter-
pretations.
"The sound doctrine, I believe, in the matter of man-
date, is that if a power of attorney is incomplete, or sus-;
ceptible of two interpretations, it is the person giving the
mandate who should suffer; it is for him to draw his power
of attorney in such a form that his agent cannot abuse it,
and if he does not take precautions sufficient to protect him-
self, the benefit of the doubt should be given to the third
party, who acts with evident good faith. In view of what I
have said, I do not believe that there was any privity of con-
tract between the appellant and respondent. I am sorry for
the unfortunate woman who suffers from all this to be
obliged to arrive at this conclusion, but I do not see how it
is possible to do otherwise."
SUIT OVER FOREIGN EXCHANGE
Another foreign exchange complication came before the
Quebec courts on May 11, when Joseph Andrejczuk sought
to recover from William Nadler the sum of $2,820, alleged
by plaintiff to be due him by defendant under the following
circumstances: —
A^ndrejczuk kept a steamship ticket agency at Sudbury,
Ont., in 1919. In the course of business, and between August
25 and September 18, 1919, he alleges he sent, on behalf of
clients, to Nadler, president of the Universal Passage and
Financial Co., Ltd., 125 St. Antoine Street, Montreal, orders
to forward immediately to certain parties in Poland 155,000
Polish marks. Instead of forwarding the moneys as ordered
at once, Nadler waited until September 19, 1919, to do so,
thus profiting by the fall in the money market. On the date
mentioned, Nadler arranged with the Guarantee Trust Co.
in New York to forward to Poland Czecko-Slovakian kronen.
On these transactions Nadler made $1,820, which plaintiff
and his clients lost.
Nadler pleaded that plaintiff had no interest in the
matter, since the moneys forwarded were not his, but that
of other persons; that he acted in good faith, and if he made
any profit out of the deals, he made them in the course of
regular business.
May 20, 1921
THE MONETARY TIMES
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[ CHARTERED ACCOUNTANTS I
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Mill
Home
J.
w
ar,
Ch
Ban
Culross Millar. C.A
alter J. Macdonald. C.A.
Macdonald & Co.
artered Accountants
k Building, 428 Main Street
WINNIPEG
HARBINSON & ALLEN
Chartered Accountanls
408 Manning Chaonbers
TORONTO
Rutherford Williamson
& CO.
Chartered Accountants. Trustees
TORONTO MONTREAL
Represented at Halifax. St. John. Winnipeg.
Vancouver.
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I REPRESENTATIVE LEGAL FIRMS |
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CALGARY
Charles F. Adams, K.C.
Bank of Montreal BIdg.
CALGARY - - ALTA.
LETHBRIDGE, Alta.
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE Alberta
SASKATOON
C. L.
DURIE. B.A. B. .\1. Wakel
,.0 1
DURIE & WAKELING |
Barristers and Solicitors
Soli
Great
.Mona
citors for the Bank of Hamilton.
West Permanent Loan Co.
ch Life Assurance Co.
The
The
Cana
da Building Saskatoon. Ca
nada
MEXMCINE HAT
W. F. W. Lent. K.C. A
LL.B. H. I). .\la
LENT. MACKAY & MANN
Barristers. Solicitors. Notaries. Etc.
305 Grain Exchange BldB . Calsary. Alberta
Cable Address "Lenjo," Western Union Code
Solicitors for The Standard Bank of Canada.
The .Vorthern Trusts Co.. Associated .Mort-
liase Investors. .Vc.
J. A. Wright. LL.B.
WRIGHT & WRIGHT
Borriilers, Solieilon, Sotaries, F.tc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
Hon. A.C. Rutherford. K.C. LL.D.
F. C. Jamieson. K.C. Chas. H. Grant
S. H. .McCuarK Cecil Rutherford
RUTHERFORD, JAMIESON
& GRANT
Barritter*, Solicitors, Etc.
514-18 McLeod BIdg. Edmonton, Alberta
LETHBRIDGE, Alta.
Conybeare, Church
&
Davidson
Bar
risters. Solic
tors. Etc. 1
Solicitors
and Loan
for Bank of .Montre;
Co. of Can.ada. Brit
Trust Co.. &c.. &c.
1. The Trust
sh Canadian
C. F P C
onyhcare. K.C. H
R. R. Davidson.
. W. Church, MA.
LL.B. 1
Lethbr
idee -
Alta, 1
(i F. H. Lose. LL.B. J. W. Slek-.ht. B.A.
LONG & SLEIGHT
Barristers, etc.
MEDICINE HAT and BROOKS, Alt*.
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers, Etc.
Solicitors-Bank of .Montreal
Canadian Bank of Commerce
Moose Jaw • Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT. SASK.
TORONTO
G. W. MORLEY & COMPANY
Barristers. Solicitors. Etc.
802 Lumsden Building. Toronto
Solicitors for A. G. Sp.\ldini; & Bros, of Can.,
Ltd.; A. J. Reach Co. of Can.. Ltd.; Dominion
Chautauquas, Ltd., etc.. etc.
Special attention Riven to Corporation work
and collections.
Cable Address: ".Morley." Toronto
VANCOUVER
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers. Solicitors, Etc.
Solicitors for Bank of .Montreal (Bank of
British North America Branch!
Yorkshire BuiUing. S2S Sermour St., Vancouver, B.C.
Your card here would
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36
THE MONETARY TIMES
Volume 66
News of Industrial Development in Canada
British Capitalists Are Interesting Themselves in the Affairs of the Dominion — Nova
Scotia Coal is Now Being Exported to Britain — Conditions in the Maritimes Are a
Little Brighter— Closing of Newsprint Mills Will Not Affect Newspapers to a Very
Large Degree — Wool Growers Expect Large Domestic Absorption of Their Products
RECENT predictions are being fulfilled by the apparent
increasing interest of British capital in Canadian in-
dustrj'. A group of English financiers, headed by Frederick
Benson, a London banker, arrived in New York last week
en route to British Columbia, where the development of a
tract 450 square miles of timber in the Revelstoke district
will be considered.
According to Mr. Benson, already ten million dollars has
been spent in the development of this tract, and eight mil-
lions more is to be appropriated for the work. Mills, fac-
tories for turning the standing timber into finished wood pro-
ducts, many of these plants being already in operation, form
part of the development, and British Columbia will absorb
all of the timber.
Last week a representative from Birmingham arrived in
Toronto to investigate the market for a pressure gauge,
which is his line of manufacture, and to appoint Canadian
agents. In his opinion British makers can compete with
United States manufacturers in this line. The managing
director of a London merchant banking house is also in
Canada to place a Canadian agency for a British disin-
fectant. He desires to get in touch with Canadian manu-
facturers who want active representatives in London.
These are just a few instances, however, and may be
the forerunners of a larger movement. With conditions set-
tling down in Europe capitalists of Great Britain are now
preparing to proceed upon a wider scale of investment in
this country, and will find a helpful medium in the trade
commissions which have been established here.
Steel and Coal Trade
The torn of events in the steel and coal trade in Nova
Scotia during the past week were a little more cheerful. It
was reported that the Dominion Steel Coi-poration had re-
ceived an order from the Canadian National Railways for
50,000 tons of rails, but this has not yet been confirmed.
It is thought, however, that negotiations to this end are
under way. At the moment the different departments at the
company's plant are reaching the end of their stock of
orders, so that new business would be very welcome. From
New Glasgow, word is received that one of the mills at the
plant of the Nova Scotia Steel and Coal Co. has started roll-
ing, which, along with additional work at the plant, will
provide employment for three or four hundred men.
As regards the coal situation, the outlook is promising.
The Dominion Coal Co. has received orders from Britain for
25.000 tons, which have been filled. England is badly in
need of coal for both industrial arid domestic purposes," and
while orders have not been excessive, more are expected, and
the company has a fleet of chartered ships ready to put to
sea as soon as cargoes can be put aboard them, once word is
received ordering shipment.
Apart from this phase of the situation other conditions
are much brio-hter. With navigation in full swing, coal
officials are looking for considerable activity in the bunker
trade. Already several large steamers have called at Louis-
burg and Sydney for bunker. Many small schooners have
also entered the trade, and are plying between the smaller
ports along the coast.
Armstrong Whitworth of Canada, Ltd., are advertising
for sale the steel works at Longueuil. Quebec. The plant is
situated on the south shore of the St. Lawrence River, op-
posite the city of Montreal. Announcement was made in
these columns recently of the closine of the works.
Robert E. Hogan, representing the Palatine Mining and
Development Co. of Chicago, who has arrived in Port Arthur,
Ont., officially announced the purchase of the Atikokan Blast
Furnace by his company. In connection with the develop-
ment of iron ore lands held by his company in Cook County,
Minnesota, it is proposed to construct a connecting link of
21 miles of the Port Arthur, Duluth and Western Railway
as far as the United States boundary, thus completing a
pioneer line built southwestward from Port Arthur many
years ago. A Canadian corporation is to be formed to oper-
ate the blast furnace, which will have to be rebuilt. It is
expected to have the furnace in operation by the fall. The
coke ovens are also to be rehabilitated. The capacity of the
blast furnace is to be increased from 150 tons of pig a day
to 225. Ore docks are also to be built at Port Arthur, and
homes are to be built for workmen.
Paper Mills Closed
Seven large paper mills in the United States and Canada
closed down last week, thereby throwing about 9,000 men
out of employment. The mills 'affected include the St.
Maurice Paper Co., Ltd., Three Rivers, Que.; Anglo-New-
foundland Paper Co., Grand Falls, Newfoundland ; Abitibi
Ltd., Iroquois Falls, Ont., and Spanish River Pulp and Paper
Mills, Ltd., Sault Ste. Marie, Ont., Espanola, and Sturgeon
Falls, Ont. The men asked for a wage increase of 15 per
cent., while the manufacturers sought a reduction of 30 per
cent., and the adoption of a nine-hour day.
"The men demanding higher wages from pulp and paper
companies now have a very weak position," said A. L. Dawe,
secretary of the Canadian Pulp and Paper Association, in
discussing the closing. "It is bad enough that they should
demand a continuance of their high wages, seeing that men
of the steel corporation have accepted a 20 per cent, cut, and
reductions in wages everywhere are in order now, to meet
the public demand for lower prices.
"The companies who closed down are all newsprint
manufacturers, and some make pulp too. They include the
Spanish River, the Ontario, the St. Maurice Paper, the Fort
Frances and the Powell River Co. I don't think that Mont-
real newspapers will be affected, as none of them obtain their
paper from these companies. But some newspapers may
feel the shutdown soon, if it lasts, as the manufacturers do
not keep any stocks, since newsprint is so bulky. Where
the newspapers are located at a distance from their news-
print mills, they keep stocks, this being the case in New
York, where no trouble is likely to be experienced."
Wool Growers Hopeful
Wool growers in the west are hopeful that Canadian
manufacturers will take practically the whole of this sea-
son's clip, according to J. W. Renton, a member of the Cal-
gary branch of the Canadian Wool Co-operative Growers'
Association. This is considered fortunate in view of the fact
that it is a fairly foregone conclusion that the Fordney tariff
bill will be put into force. Wool growers in Canada had been
dependent in the past on the United States market to absorb
their supply. With better grading methods, however, there
is every possibility that they will be able to sell their wool
in the home market. Last year about 45 per cent, of the
production was disposed of to Canadian manufacturers.
According to Mr. Renton, there is also a better demand
for Canadian wool now in the old country and there are
expectations that this trade might be greatly developed. It
is estimated that the clip this year would run about what it
was in 1920; th-it was 16,000,000 pounds for the whole of
Canada. M.initoba, Saskatchewan, Alberta and British
Columbia had contributed .3,000,000 pounds, Alberta's quota
being 2,200,000 pounds.
May 20, 1921
THE MONETARY TIMES
The Imperial
Guarantee and Accident
Insur£uice Company
of Canada
Head Office, 20 VICTORIA ST., TORONTO, ONT.
IMPERIAL PROTECTION
Guarantee Insurance, Accident Insurance, Sickness
Insurance, Automobile Insurance, Plate Glass Insurance.
A STRONG CANADIAN COMPANY
Paid up Capital - - - $200,000.00
Authorized Capital - - - $1,000,000.00
Subscribed Capital - ■ - $ 1 . 00(J, 000. 00
Government Deposits $111,000.00
Ll^ ]\T PI /-^ 1\T GUARANTEE AND
^-^ *^ *-' ^-^ *~ ACCIDENT COY., Limited
Head Office for Canada - Toronto
Employers' Liability. Elevator. Contract. Personal Accident. Fidelity
Guarantee, Internal Revenue Sickness. Court Bonds,
Teams and Automobile.
AND FIRE INSURANCE
FARMERS'
FIRE & HAIL INSURANCE COMPANY
FIRE, HAIL AND AUTOMOBILE INSURANCE
Head Office. CALGARY. Saskatchewan Office, REGINA
M. P. JOHNSTON, Managing Director
CANADIAN STRONG PROGRESSIVE
X v»& wj%y-9JMPjse««*!i?««rf
FIRE INSURANCE
AT TARIFF RATES
Merchants Casualty Co,
Head Office : Winnipeg, Man.
The most progressive c
upervision of the Domini(
mbracinn the entire Domir
npuny in L.
and Provii
n of Canada
SALESMEN NOTE !
Our accident and health policy is the most liberal protection offered
a premium of ?I.(K) per month and up.
Covers over 2.51X) different diseases.
Pays for Life if disabled through Accident or
Fifty per cent- extra if confined to hospital-
Pays for Accidental Death. Quarantine. Sur-
^^con Pees for minor injuries, also for death of
lieneHciary and children of the Insured.
Good Openings for Live Agents
Hastern Head Office. Royal Bank Bldg.. Toronto
Home Office Electric Railway Chambers,
Winnipeg. Man.
Commercial Union Assurance Co.
Limited, of London. England
Capital Fully Subscribed 8 14,750,000
Capital Paid Vp 7.375,000
Total Annual Income Exceeds 75,000.000
Total Funds Exceed 209,000.000
Head Office Canadian Branch:
COMMERCIAL UNION BUILDING - MONTREAL
HALB1:KT,I. KICKK, assistant i\1an,\i;i:k. W. S. JOI'LINC. .Masa..kk
Toronto Office • 49 Wellington Street East
GEO. K. HARGKAFT. General Agent for Toronto and County of York
giniiDDiMiiiiiiMiiiiniBiiiiiiiiiiiiiniiiiiH^^
I Automobile— 1 92 1 —Season |
I Policies to cover ANY or ALL motoring risks |
■ ATTRACTIVE AGENCY CONTRACTS I
i British Empire Fire Underwriters
m
I 82-88 King Street East, Toronto
I Assets Exceed $4,000,000
aiiiiiiiiiiwiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiniiiiiiiiiiiii
■IlilllillUillilllllOillllllilllilllllllllll
THE PROVIDENT
ASSURANCE COMPANY
A. M. ALETTER, Provincial Agent
C.P.R. Building, Toronto
A Strong All-Canadian Company, with Head
Office at Montreal, has been licensed to transact
Fire Insurance
in addition to Automobile, Accident, Sickness,
Liability, Guarantee and Surety.
The Fire Branch will operate non-tariff,
writing moderately large lines.
Applications for agencies are invited.
38
THE MONETARY TIMES
Volume 66
The Ogilvie Flour Mills Co., Ltd., which had been closed
temporarily, has resumed operations. The Western Canada
Flour Mills, Ltd., of St. Boniface, Man., is operating on a
10-hour shift, after three weeks' shutdown. The Western
Canada Flour Mills plant formerly operated on a 24-hour
basis, employing 140 men. On the 10-hour basis the plant
employs somewhat more than half that number.
The plant of the Dominion Sugar Co., at Chatham, N.B.,
has ceased refining raw sugar, according to a statement of
an official of the company. The Kitchener plant of the com-
pany will not be operated this autumn. The contract with
the farmers this year calls for such a high minimum price
for beets that the company will not contract for a full acre-
age with the present peculiar sugar situation.
NEW INCORPORATIONS
Capital for Week Ended May 18 is $36,227,715, Compared
with $25,703,400 Previous Week
Authorized capital of $36,227,715 is represented by com-
panies whose incorporations were reported to The Monetary
Times during the week ended May 18, compared with $25,-
703,400 the previous week. A comparative summary by pro-
vinces is as follows: —
Week ended Week ended
May 11. May 18.
Dominion $12,818,000 $23,l'c6,C00
Alberta 1.325,000
British Colu.. b a 2,580,000 945,000
Manitoba 60,000
Ontario 6,966,500 5,338,715
Quebec . 1,403,900 838,000
Saskatchewan 550,000
Totals $25,703,400 $36,227,715
The following is a list of companies recently incorporated
under Dominion charter, with head office and authorized
capital: —
Oliver Engineering Co., Ltd., Montreal, $100,000; Inter-
national Aero Corp., Ltd., Montreal, $1,000,000; Direct Mer-
chandise Co.. Ltd., Montreal, $50,000; Mol-Brew Cartage Co.,
Ltd., Montreal, $250,000; Pictorial Publishing Co., Ltd.,
Windsor, $200,000; Sterling Bond Corp., Ltd., Montreal,
$200,000; Canadian Mexican Petroleum Co., Ltd., Montreal,
$2,500; Lavoie Steam Engine Co, Ltd., Montreal, $100,-
000; Louis Geigin, Ltd., Montreal, $50,000; Bathurst Co., Ltd.,
Bathurst, N.B., $15,000,000; St. 'Maurice Power Co., Ltd.,
Montreal, $8,000,000; Lombard Investment Co., Ltd., Mont-
real. $500,000; Johnson Oil Co., Ltd., Vancouver, $500; W.J.
Anderson Manufacturing and Rubber Co., Ltd., London, $50,-
000; Grant, Fleming and McLean Co., Ltd., Haileybury, $50,-
000; P. T. Roberts, Ltd., Winnipeg, $150,000; Herman House
Oil Co., Ltd., Vancouver, $500; Bates, Valve Bag Co., Ltd.,
Niagara Falls, $50,000; Amoi-oso and Malagodi Co., Ltd.,
Montreal, $50,000; Gurd Service, Ltd., Montreal, $50,000;
Eastabrook Oil Co., Ltd., Vancouver, $500; Fady Oil Co.,
Ltd., Vancouver, $500; Finch Properties, Ltd., Hamilton,
$200,000; V. P. Auto Appliance Co., Ltd.. Montreal, $50,000;
American Stocks and Bonds, Ltd., Windermere, $500,000;
Grocers Bread Co., Ltd., Ottawa, $100,000; Globe Hat Works,
Ltd., Montreal, $200,000; Universal Coal Mines of Canada,
Ltd., Toronto, $1,000,000; Behn Oil Co., Ltd., Vancouver,
$500; McQueen Oil Co., Ltd., Vancouver, $500; Walker Twist
Drill and Tool Co., Ltd.. Walkerville, $750,000; Storey Oil
Co., Ltd., Vancouver, $500; Dental Co. of Canada, Ltd.". To-
ronto, $250,000; Wallis Canadian Crown Cork Co., Ltd.,
Montreal, $200,000.
The following is a list of companies recently incorporated
under provincial charter, with head office and authorized
capital: —
British Columbia. — ."Xrnold ;ind Quigley Properties, Ltd.,
Vancouver, $75,000; Gorge Park .Amusement Co., Ltd., Vic-
toria, $5,000; Elysium Hotel, Ltd., Vancouver, $25,000; Sey-
mour Logging Co., Ltd., Lund, $50,000; Corless, Ltd., Prince
George, $10,000; Coast Amusement Co., Ltd., North Van-
couver, $10,000; Optimist Publishing Co., Ltd., Victoria, $10,-
000; Consolidated Homestake Mining and Development Co.,
Ltd., Vancouver, $500,000; Campbell, Henderson, Ltd., Van-
couver, $20,000; Searson Manufacturing Co., Ltd., Vancouver,
$.5.0,000; Oil Drillers of Canada, Ltd., Vancouver. $25,000;
Edgett Shingle Co., Ltd., Vancouver, $50,000; Foreign Ex-
ports, Ltd., Vancouver, $10,000; Victoria Waste Products,
Ltd., Victoria, $10,000; Holmes and Gordon, Ltd., Kelowna,
$10,000; Maple Leaf Publishing Co., Ltd., Vancouver, $25,-
000; Deanshaven Development Co., Ltd., Deanshaven, $60,000.
Ontario. — Co-operative Association of Fournier, Ltd.,
Fournier, $15,000; H. and L. Specialty Manufacturing Co.,
Ltd., Toronto, $40,000; Brown and Bernard, Ltd., Toronto,
$40,000; Jack Frost Ice Machine Co., Ltd., Toronto, $1,000,-
000; Auto Rim Co., Ltd., Toronto, $250,000; Canadian Con-
struction Co., Ltd., Toronto, $40,000; Adanac Mortgage In-
vestments, Ltd., Toronto, $1,000,000; Hamilton Surveys, Ltd.,
Hamilton, $40,000; Titterington Co., Ltd., St. Catharines,
$100,000; Gloucester Township Telephone Co., Ltd., Carlsbad
Springs, $100,000; the Kakery, Ltd., Toronto, $100,000; Pem-
broke and Mud Lake Telephone Co., Ltd., $840; Verona and
Frontenac Telephone Co., Ltd., Verona, $7,875; Centennial
Temple Association, Ltd., Windsor, $100,000; Hamilton Pro-
fessional Hockey Club, Ltd., Hamilton, $100,000; British and
Colonial Trading Co., Ltd., Toronto, $40,000; Chilver Land
and Building Co., Ltd., Walkerville. $200,000; Ferrey Coal
Co., Ltd., Hamilton, $100,000; Tanco of Canada, Ltd., "Wind-
sor, $40,000; Armour, Bell, Boswell and Cronyn, Ltd.. To-
ronto, $50,000; Modern Cinderella Shops, Ltd., Toronto, $100,-
000; Keele and Moore, Ltd., Toronto, $80,000; Traders Realty,
Ltd., Hamilton, $40,000; Eraser Hardware Co., Ltd., Gait,
$40,000; Rowntree Estates, Ltd., Toronto, $205,000; West
Lome Turf and Athletic Club, Ltd., West Lome, $10,000;
Inter-Terminal Transportation, Ltd., Toronto, $500,000;
British Canadian Petroleum Co., Ltd., Toronto, $1,000,000.
Quebec— Dominion Theatres, Ltd., Montreal, $198,000;
Club de Reforme du Comte de Hull, Inc., Hull, $10,000; Carl-
ton Club, Ltd., Montreal, $10,000; Club Ouvrier, Inc., Mont-
real, $20,000; Travellers' Club, Inc., Montreal, $20,000; La
Compagnie Gentin, Montreal, $20,000; La Compagnie d'Ap-
provisionnement d'Eau de Ste. Clothilde de Horton. Ltd.,
Sainte Clothilde de Horton, $10,000; Siiico, Ltd., Montreal,
$550,000.
EXCHANGE ON INTEREST COUPONS
Another litigation resulting from a dispute over the
right of payment of interest coupons according to their face
value in LInited States currency when the creditor has option
to collect in the United States was decided in the Quebec
courts on May 12 in favor of the demander. Plaintiff was
La Societe des Artisans Canadien Fi'ancais. As holder of
debentures of the School Commissioners of the municipality
of St. Charles Bas du Sault, it had the option of collecting
the interest at maturity either at the Hochelaga Bank, Mont-
real, or at the National Park Bank, New York. Ten interest
coupons, representing a value of $300, fell due in December
last, and choice was made to collect the amount at the bank
in New York. The school commissioners, however, had made
no provision there to nreet the demands, and when a letter
was written advising them that the plaintiff wished to col-
lect in New York, the amount due was offered in Canadian
currency. Plaintiff", however, claimed that $34.50 should be
added to make up the difference in the rate of exchange at
that date. The present action, therefore, was directed to re-
cover $334.50.
In accordance with established jurisprudence. Justice de
Lorimier held that, as the creditor had the right to claim
the value of the interest coupons in New York, and, as de-
fendants refused to pay the money in New York, plaintiff
was justified in its demand that payment here should be to
an amount equivalent to the value of the coupons in United
States currency. Judgment, therefore, was given for plain-
tiff for $340.50, with interest as from December 1, 1920, and
the costs of the action.
Mav 20, 1921
THE JIONETARY TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto " Solid as th*" Continent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Uie Assurance Company
■■SOLID .A.S THE CONTINENT''
HEAD OFFICE TORONTO
Important Features of the Ninth Annual Report
()|- THI-:
WESTERN LIFE ASSURANCE CO.
HEAD OFFICE - WINNIPEG. MAN.
Assurances, New and Revived Sl,;i08,750.00
Premiums on same 44,70,S 25
Assurances iu Force 4.233,907.35
Total Premium Iiicome 128,286.67
Policy Reserves ' 291,969.00
Admitted Assets . 358,667.36
Average Policy 2,306.04
Premium per 51,000 Insurance — Collected in
Cash 30.30
For particulars of u good agency apply to
ADAM REID. 'Managing Director WINNIPEG
The Mutual of Canada Day by Day
During ttie year 1920 the average payments in benefil"! of different kinds
to benetici-^ries and policyholders amounted to SI 1.500 for every
working day throughout the year, a total of $3.49^.830. Every year
the payments have increased, the total made since the establishment of
the company being over thirty-three millions. The funds in hand to
guarantee future payments amount to forty-two millions -so that the
company has either paid or holds in trust more than SVS.Oeo.OOO. This
total exceeds the premium income by eight millions. These figures show
that the .Mutual Life of Canada is making good on all contracts entered
into in past years, it is not only "making good," it is " making better."
for the profits alone actually paid during the years since establishment
amount to eight millions of dollars, a record of economy and service of
which any life office might Justly be proud.
The Mutual Life Assurance Co. of Canada
"For the man of vision."
Policies which may be adjusted to meet changed cir-
cumstances. The " Canadian ' Series issued only by
The London Life Insurance Co.
HEAD OFFICE
LONDON. CANADA
G
E
N
E R
A L
ACCIDENT
FIRE
AND LIFE
ASSURANCE
CORPORATION,
LIMITED.
OF PERTH
SCOTLAND
PELE
Canadian
; HOWL. AND,
Advisory Director
Toronto .Agents. E
THOS H HALL.
.Manager for Canada
L. McLEA.W LI.MITEl)
DON T WORRY ABOUT THE FUTURE
INSURE YOUR LIFE AND FORGET IT
If half the time yciu spent m uorryini; aliout the future were used in
providing for it, you would soon Hnd that you had nothing to worry about
THE PROSPECT OF POVERTY
No one in the world ever faced the prospect of poverty with pleasure.
How would you like to do without the small comforts that make up
your daily life? The vision is not pleasant. Then how do you think
your wife and family would regard it if your support were taken away.
IT'S UP TO YOU
Life Insurance means freedom fromswant, education and life without
worry for your family.
You CAN afford it and cannot afford to neglect it.
Ask for rates on a suitable plan of insurance at your own age.
THE GREAT- WEST LIFE ASSURANCE COMPANY
HEAD OFFICE
WINNIPEG
The Western Empire
Life Assurance Company
Head Office: 701 Somerset Building, Winnipeg, Man.
SASKATOON
EDMONTON
VANCOUVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Head Office for Canada, Hamilton, Ont. Assets over $1,700,000
Writing Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NORMA.V S. JONES. Manager R. J. MAHONV. Ass t Manager
ATLAS
Assurance Company Limited
Founded in the Reign of George 111.
Subscribed Capital
Capital Paiil Up . . .
Additiotial Funds .
?I 1,000,000
1,320,000
24,720.180
The company enjoys the highest reputation for prompt
and liberal settlement of claims and will be glad to receive
applications for Agencies from gentlemen in a position
to introduce business.
Head Office for Canada — 260 St. James St., Montreal
40
THE MONETARY TIMES
Volume 66
News of Municipal Finance
Establishment of South Saskatchewan River Water Project is Planned — Financial
Arrangements Involve Debenture Issue — Edmonton Had Surplus on Current Account
in 19^0— Collections Showed Improvement — Winnipeg Water District Had a Credit
Balance Last Year — St. John Tax Rate is Lower as a Result of Higher Assessment
PLANS ai'e undei- way for the establishment of the Re-
gina-Moose Jaw water district, and in due course ap-
proval will be sought by popular vote of this South Sas-
katchewan River project. The most difficult part, it seems,
will be the financing, but arrangements have been prepared
which so far appear satisfactory. In the cities the rate to be
paid by the consumer will vary according to the total annual
consumption. The water will be sold in bulk to the cities,
which will vary from 32 cents per thousand gallons at first
to 20 cents when the system is running at full capacity. It
is estimated that the average cost to consumers in Regna,
including local distribution, will be 43 cents, as compared
with the present rats of 37.6 cents, and in Moose Jaw 50
cents, as compared with the present 80 cents.
All costs of construction undertaken by the water dis-
trict authorities will be paid fi'om the proceeds of the sale
of debentures, secured by the total assessable property of the
district. Sinking fund contributions and all interest charges
will be met from revenue from the sale of water. To ensure
that the revenue will be sufficient to cover operation, main-
tenance and all fixed charges, a base rate for water at points
of delivery on the main system will be fixed each year, based
on the operation of the preceding year. Interest and sinking
fund charges on debts incurred for the construction ot
branches will be met by rates additional to the base rate for
water used on such branches.
Parcels of land, any part of which lie within half a mile
of a pipe line affording a water supply, shall be assessed at
the rate of $10 per quarter section per year for twenty years
in the country, and l^.'z mills on the dollar on the rateable
assessment in towns, villages and hamlets, but this assess-
ment shall cease when the water is taken for use in connec-
tion with such parcels of land. The maximum charge for
water on branch systems, including the base rate, will be $1
per 1,000 gallons. Any excess revenue required to meet
charges against such a branch system will be raised by
assessment levies over the area of the branch system.
In the improbable event of the occurrence of a series of
deficits in revenue, and it becomes necessary, through the
action of the debenture holders, to levy an assessment on all
property within the water district, the rate to be applied to
property, not exceeding quarter sections, all parts of which
lie beyond a distance of three miles from a pipe line con-
taining a water, supply, shall be one-half the rate to be
applied to other properties within the water district. A rate,
additional to the base rate of 50 csnts pEr 1 000 gallons for
a minimum quantity of 200 gallons per day shall he charged
for water delivered to individual sei-vice branches to pro-
perties adjoining the main system, and this will be considered
to pay all charges in connection with such branches and the
supply of water therefrom, provided they do not exceed 1,000
feet in length.
Victoria, B.C. — The city council has fixed a tax rate of
29 mills, as compared with 26 mills in 1920."
Sydney. N.S.— The tax rate for 1921 will be 31/2 per
cent., which is one-half per cent, higher than 1920. The
assessment this year amounts to $12,229,000.
Greater Winnipeg Water District, Man. — A net credit of
$27,023 accrued to the district from the sale of water in 1920
after all costs of operation had been deducted. Levies for
the year amounted to $959,955. These have all been collected
with the exception of $9,561 from the town of Transcona.
Prince Albert, Sask. — An improved financial position is
reported by the city. It reduced its bank loan from $431,112
in 1918 to $290,048 in 1920, cut down its arrears of taxes
from $849,154 in 1918 to $747,185 in 1920, and collected
$253,655 out of the tax levy of $290,615 for 1920 on its tax-
payers.
St. John, N.B.— Tax rate for 1921 will be $2.76 on $100,
as compared with $2.98 in 1920. In analysis, the rate for this
year includes $0.74 for county purposes and $2.02 for city
purposes. Last year the respective allotments wei'e $0.63
and $2.35. It is evident that the city has achieved a consider-
able curtailment in expenditures, while the county apportion-
ment has advanced.
The total levy is $1,657,511, an increase over last year
of $43,965. The total assessable valuation is $55,626,350, an
increase of $4,917,050 over last year. An increase of over
$20,000 is reported in the tax on special corporations, banks
and in the supertax.
Edmonton, Alta. — City Comptroller Mitchell has issued
his annual report for 1920, giving an exhaustive review of
the city's financial position. The debenture debt of the city
outstanding at the close of last year, inclusive of general,
special (property share) and utilities, was $25,556,102. De-
ducting the sinking fund investments, inclusive of surplus
earnings, the total funded debt was $19,267,980. The net
funded debt amounted to $9,377,801.
The report shows that the surplus earnings of the sinking
fund board last year amounted to $32,937, aa compared with
$54,341 the previous year. Surplus earnings to date,- subject
to a realization of loans on mortgages, amount to $265,275.
The schedule shows that the board has $1,094,130 in first
mortgages on real estate, and the arrears and interest on
these mortgages amount to $269,899. Total sinking fund
investments amount to $6,288,122.
Dealing with tax arrears, Mr. Mitchell shows that the
total outstanding at the close of last year was $7,824,265.
Arrears on the tax rolls amounted to $5,279,115, while the
amount against lands forfeited to the city was $2,545,150.
Nearly 10,000 lots were added to Edmonton's property hold-
ings as a result of the last tax sale. The arrears on these
properties, on which the city was given the right to obtain
titles, amounted to $703,566.
"A further contribution was made to the resers'e against
uncollectable taxes of $310,000— $150,000 from the tax levy,"
says the comptroller. "The balance was the difference be-
tween the estimated penalty on arrears of taxes and the
actual, bringing the reserve up to $1,005,007. It has already
been necessary to draw upon the reserve to the extent of
$81,267 in writing off tax arrears on certain outer sub-
division properties which have been cancelled under orders
of the Board of Utility Commissioners, and also exemptions
for soldiers' homes, leaving the reserve at $923,810."
Collections during the year amounted to $3,333,094, or
73.39 per cent., inclusive of discount, of the current year's
levy, as against 69.4 per cent, for 1919. The combined col-
lections of current taxes and arrears amounted to $4,408,460
for 1920, compared with $3,641,701 for the year previous.
On the current revenue and expenditure account for 1920
there was a surplus of $98,761. This, together with a surplus
brought forward from 1919 of $53,407, makes a total surplus
of $152,168 on net revenue account. The provision of $50,000
for an incinerator has been charged to 1920 revenue account
and carried forward as a reserve for the purpose when
required.
Reporting on the utilities, the comptroller shows there
was a net loss of $89,186, as compared with a surplus of
$147,147 the previous year. The street railway deficit was
$200,191, as against $59,674 for the previous year.
May 20, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
nOUSSLRWOOI>>^°G>MPANY
INVESTMENT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
REAL ESTATE
Farm Lands
City Properties
Building Management Rentals
OSLER, HAMMOND & NANTON
WINNIPEG
"The Hill Roads"
A short history and description of the North-
ern Pacific Railway Company, The Chicago
Burlinerton and Quincy Railroad Company
and the Great Northern Railway Company.
Our United States Correspondents have prepared
a concise, interesting, and timely pamphlet which
we shall be glad to send to investors upon request.
Harris, Forbes & Company
INCORPORATED
C.P.R. Building 21 St. John Street
TORONTO MONTREAL
To the Investing Public
IVIH W HAKOLI) .MAKA. formerly ManaKJnK Dirictor of
'^" the Miehie. M.ira Co.. Limited, and .Ml< LKIGH .M.
McCarthy. late of the Royal Hanll of Canada, announce
that they have orfiani/cd a Company for the purpose of
conducting a general broUerage and investment business.
The new company is known as .Mara & .McCarthy, t^imltcd.
OFFICES HAVE BEEN OPENED IN THB TIMES BLDC.
107 BAY STREET. TORONTO, where every facility for
rendering prompt service to the investing public is provided.
Connections have been formed with New York, Montreal and
other financial centres, and .Mr. Mara will represent the
Company on
THI-: TORONTO STOCK BXCHANC.E,
MARA & McCarthy, Limited
stock and Bond Brokers
107 BAY STREET
TORONTO
Telephone Adelaide 287
c.
H.
BURGESS & CO.
Government and
Municipal Bonds
14
King
Street East
Toronto
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
"FOREIGN INVESTMENT"
Canadian investors would do well to study the oppor-
tunities now available in Foreign Government and
Municipal bonds.
Now that the Reparation question has been accepted
by the German Government, we anticipate further activ-
ity and increased prices.
The market already shows an upward move and
investors would do well to give immediate consideration.
DO NOT DELAY!
For particulars and quotations, apply to
R. M. HEFFERNAN & CO., Ltd.
Jackson Building, Ottawa
42
THE MONETARY TIMES
Volume 66
Government and Municipal Bond Market
Victory Loan Prices React Slightly From Recent Strength— Option on Large Block
of Edmonton Bonds Taken by Wood, Gundy and Company— Lethbridge Northern Irri-
gation Issue is Now Offer ed— Newfoundland Government Makes Loan in New York
MANY Ontario municipalities disposed of bond issues
during the past week, paying from 6.27 per cent., as
in the case of Peterboro, to 6.72 per cent, in the case of York
Township. The high rate paid by the latter is explained
paally by the fact that the municipality has been a pretty
heavy borrower lately, and that ten-year bonds are not as
a'ttractive as twenty or thirty-year securities. The town-
ship paid 6.32 per cent, for its loan in March, the maturity
being for twenty years.
It is hai'd to define the exact trend of the market by
municipals, owing to the variety of the issues, but it seemed
as though there has been a weakening. There are many
large issues pending which will aJso tend to further weaken
the market. Manitoba and the Lethbridge issues may pos-
sibly go to the United States, but British Columbia and
Toronto bonds are payable in Canada only. Victory loan
prices have reacted slightly from their recent strength, as
illustrated by the following figures: —
Control Close Close Close Close
price. Jan. 26. Mar. 2. May 11. May 18.
1922 98 98% 98% 98.50 98.50
1927 97 98 971/2 98.00 98.00
1937 98 99% 99% 99.30 99.00
1923 98 98% 98 98.10 98.10
1933 96y2 98 98% 97.30 97.35
1924 97 96% 96% 96.75 97.60
1934 93 9514 95% 95.00 94.95
Final arrangements in connection with the debenture
issue of the Lethbridge Northern Irrigation District have
now been completed. The interest rate has been reduced
from 7 to 6 per cent., and it has been decided to place only
$2,400,000 of the securities on the market at the present time.
By splitting the issue it is expected that a better price will
be received. The bonds are payable both in Canada and the
United States, and a fully detailed prospectus, together with
a cE'll for tenders, has been sent to all leading bond dealers
in this country and across the border. Bids will be opened
by the provincial treasurer in Edmonton on May 26 next.
For the second time in two years, the government of
Newfoundland has come into the American market for funds.
This week $4,500,000 6V2 per cent. 15-year bonds of the colony
were offered and sold in New York by a syndicate compris-
ing Dillon, Read and Co., Lee, Higginson and Co., and the
Dominion Securities Corporation, at a price of 93%, to yield
over 7.20 per cent. The proceeds of the loan are to be for
railway improvements and extensions, for other public works
and for naval and military expenses.
Coming Offerings
The following is a list of debentures offered for sale,
particulars of which have been given in this or previous
issues: —
Tenders
Borrower. Amount. Rate ''/r . Maturity. close.
Manitoba $2,000,000 (i Optional May 23
Pembroke, Ont 80,324 (i Various May 25
British Columbia 3,000,000 6 Optional May 25
Moosomin, Sask 6,600 7 10-instal. May 26
Lethbridge Northern
Irriga. Dist.. Alta. 2,400,000 r^ :lO-years May 26
Renfrew, Ont 42,404 Var. Various May 31
Toronto, Ont 5,000,000 6 Serials June 1
Alameda, Sask 6,500 8 10-instal. June 1
Saskatoon, Sask 204,000 5 & 6 Various June 6
WestbourneR.M.,Man. 60,000 6 30-instal. June 7
Vermilion, Alta 10,000 7 20-instal. June 11
Saskatoon, Sask. — The city has extended the date for
which tenders were to be received on $204,000 5 and 6 per
cent., debentures of various maturities, from May 23 to June
6, 1921.
Moosomin S.D., Sask. — Tenders will be received until
May 26, 1921, for the purchase of $6,600 7 per cent. 10-in-
stalment debentures, dated August 1, 1921. G. S. Page,
secretary-treasurer, Moosomin.
Alameda, Sask.. — Tenders will be received until June 1,
1921, for the purchase of $6,500 8 per cent. 10-instalment de-
bentures, the proceeds of which will be used for building a
rink. T. H. Truscott, town clerk.
British Columbia. — Tenders will be received up till May
25, 1921, for $3,000,000 6 per cent, bonds, payable in Canada
only. Biddei's are asked to submit offers for securities ma-
turing in 15 or 20 years.
Manitoba. — The province is calling for tenders until May
23, 1921, for the purchase of $2,000,000 6 per cent, bonds.
Alternative bids are asked on 10-year securities, payable in
the United States, and 20-year securities payable in Canada
only.
Renfrew, Ont. — The town is calling for tenders until
May 31, 1921, for the purchase of the following debentures:
$34,640 61/2 per cent. 20-instalment; $2,000 5 per cent. 22-
instalment; $5,764 5 per cent. 30-instalment.
Pembroke, Ont. — A slight change in the amounts of bonds
offered by the town has been made. The advertisement on
another page of this issue gives the correct details. The
total is still the same— namely, $80,324.50.
Debenture Notes
Brant County, Ont. — The county council has decided to-
place $65,000 road debentures on the local market.
Chatham, N.B. — Ratepayers have voted against a by-law
which authorized the issue of $100,000 bonds for building
permanent roads, with a view of providing employment for
those out of work.
Brantford, Ont. — City Treasurer Bunnell advises The
Monetary Times that the city will not be doing any financing
until after the 1st of July, and in view of the success which
has attended the efforts of the municipality in the local mar-
ket, another domestic loan may be floated, so that the amountr
of funds required from outside may not be very large.
Saskatchewan. — The following is a list of authorizations
granted by the Local Government Board from April 30 to
May 7, 1921:—
Schools, 8 per cent. 10-years annuity — Rosebrae, $4,000;
Florentine, $4,000; Tailman, $1,160; Trafalgar, $3,500; Halich,
$2,000; Crooked Valley, $2,000; Dartmore. $3,000; Lily Vale,
$1,600; Summerside, $5,000; Loverna, $7,000. 8 per cent.
15-years annuity — Kuroki, $12,200; Elstow, $14,900; Eastman,
$4,000; Flett's Springs, $5,700; Hague, $12,000; Boyer, $5,-
000. 8 per cent. 20-years annuity — Danzig, $5,500; Regina
Beach, $13,500. Willow Springs, $1,800 8 per cent. 10-instal-
ment.
Rural Municipality of Cut Knife, $3,000 8 per cent. 10-
years annuity, for Red Cross outpost.
City of Regina 6 per cent, sinking fund debentures. —
$14,000 30-years, for sewer-house connections; $33,448 30-
years, for waterhouse connections; $16,271 20-years, for
water-meters.
Montreal East, Que. — The Metropolitan Commission has
authorized the municipality to borrow $100,000 to pay a
floating debt.
May 20, 1921
THE MONETARY TlilES
Canadian Government and
Municipal Bonds
at present prices afford the
investor a substantial interest
return. Security is of the
highest grade, interest can be
collected promptly and con-
veniently, and should necessity
arise for cash, these bonds
will be found to be amongst
the most readily marketable of
all securities.
Write for our latest list.
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London. Eng
The Problem
of Our
Railways
— and a suggested solution, is the
main topic of the current edition of
Investment Items.
The seriousness of the situation is
clearly pointed out. The solution
proposed is both interesting and
informative.
Write for a copy to-day.
Royal Securities
^ ^CORPORATION
LIMITED
MONTKEAL
TORONTO HALIFAX ST. JOHN, N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. En».
ilt-Ytf T*Y f MJUUJL}Ajjj^^^^^^.k^.
W. L. MclilNNON
1)EA.\ H. PETTES
We Buy ar
d Sell
VICTORY
BONDS
W. L.
CoVe
at Current Prices
McKINNON & CO.
rnment and Municipal Bonds
McKINNON
BUILDING
Telephone Ade
-:• TORONTO
laide 3870
ACCOUNT BOOKS
Loose i^eaf ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
The Pulp and Paper Industry
is now Canada's largest man-
ufacturing export industry.
The Brompton Pulp and Paper Co., Limited, is one
of the oldest and most conservative companies engaged
in this industry.
Send for circular describing the attractive issue of 20'
year 8''?o bonds being offered at 99 and interest.
R. A. Daly & Co.
BANK OK TORONTO HLII.DINC.
TORONTO
Government & Municipal Bonds
and
Corporation Securities
LisI of OfierinSi
W. A. MACKENZIE & CO., Limited
42 KING STREET WEST. TORONTO
THE MONETARY TI.MES
Volume 66
Bond Sales
Presc-ott and Kiissell C'ouutifs, Ont. — R. C. Mfi'tthews
and Co. liave bought privately $200,000 6 per cent. 20-instal-
ment debentures.
Etohicoke Township, Ont. — MacKay and MacKay have
purchased !i;45,000 6 per cent. oO-instahnent debentures eat a
price of 96.18, which is on about a 6.35 per cent, basis.
St. Thomas, Ont. — The city has disposed of about $150,-
000 of 6 per cent, short-term bonds to local investors since
the beginning- of this month, according to City Treasurer
Perry.
iMoncton, N.B. — An issue of $130,000 6 per cent, bonds,
dated May 1, 1921, and due May 1, 1941, has been disposed
of, and the securities are now being retailed by eastern
brokers at par, in denominations of $500 and $1,000.
Whitemouth R.M., Man. — The Bond and Debenture Corp.
has purchased $25,000 6 per cent. 30-instalment bridge and
culvert work debentures at 88 and accrued interest, which
means that the municipality pays about 7.24 per cent, for its
money.
Brandon, Man. — The city has sold $50,000 6 per cent,
school bonds to J. A. Thompson and Co. The money will
cost Brandon a little more than 6V2 per cent. The present
debentures are a portion of an issue which was arranged a
year £>go. At that time it was proposed to sell $150,000
worth of securities and $100,000 worth were actually sold to
J. A. Thompson and Co. As the schools did not need the
additional $50,000, the bonds were held by Brandon for one
year. These securities will be offered to the public by J. A.
Thompson and Co. to yield the investor 6.40 per cent. The
bonds mature in 1950.
Saskatchewan. — The following is a list of debentures
reported sold from April 30 to May 7, 1920:—
Schools.— Craik, $33,500 IVz per cent. 20-year; to Regina
Sinking Fund. Ceylon, $1,500 8 per cent. 10-year; to H. Mc-
Illrath, Gunnel, Iowa. Allindale, $1,000 IVz per cent. 20-year;
to H. Glover, Regina. Allindale, $1,700 IVz per cent. 20-year;
to local purchaser.
Star City R.T., $2,000 8 per cent. 15-annuity, to C. C.
Cross and Co.
Sarnia, Ont. — The Dominion Securities Corporation have
purchased $189,434 debentures, including $65,180 6 per cent,
securities maturing 1921-30, for pavements; $86,147 6% per
cent, securities, maturing 1921-30, for pavements; $38,107 6%
per cent, securities, maturing 1922-26, for sewers and side-
walks, at a price of 97.461. Tenders were as follows: —
Dominion Securities Corp 97.461
R. C. Matthews & Co 97.34
Wood, Gundy & Co 96.62
C. H. Burgess & Co 96.507
Renfrew County, Ont. — R. C. Matthews and Co. have
bought $250,000 6 per cent. 20-inst£lment highway improve-
ment debentures at a price of 96.81, which is on about a 6.40
per cent, basis. The following tenders were received: —
R. C. Matthews & Co 96.81
United Financial Corp., Ltd 96.715
A. E. Amas & Co 96.56
Wood, Gundy & Co 95.84
National City Co., Ltd 95.81
C. H. Burgess & Co 95.54
Dominion Securities Corp 95.254
York Township, Ont.-^— A. E. Ames and Co. have pur-
chased $210,652 6 per cent. 10-instalment local improvement
debentures at a price of 96.69, which is on about a 6.72 per
cent, basis. The following tenders were received: —
A. E. Ames & Co 96.69
United Financial Corp., Ltd 96.58
Dominion Securities Corp 96.293
Wood, Gundy & Co 96.18
R. C. Matthews & Co 96.07
C. H. Burgess & Co 95.71
A. Jarvis & Co , 95.21
Peterboro, Ont. — The city has awarded $100,000 Gli per
cent, fi'nd $130,000 6V2 per cent. 20-year bridge debentures to
Wood, Gundy and Co., at an average price of 101.33, which
means that the money costs the municipality about 6.27 per
cent. Sixteen tenders were received as follows: —
Wood, Gundy & Co 101.33
C. H. Burgess & Co 101.22
Han is, Forbes & Co., Inc 101.079
National City Co., Ltd 100.97
McLeod, Young, Weir & Co 100.83
Dyment, Anderson & Co 100.41
R. C. Matthews & Co 100.28
United Financial Corp., Ltd 100.13
Brent, Noxon & Co 100.08
Housser, Wood & Co 100.02
A. E. Ames & Co 99.94
Hall & Hall, for Edward Cronyn & Co 99.92
Nesbitt, Thompson & Co 99.84
Dominion Securities Corp 99.79
MacKay & MacKay 99.13
W. A. Mackenzie & Co 97.82
OPTION TAKEN ON EDMONTON BONDS
Negotiations were concluded last week by Wood, Gundy
and Co. with the city of Edmonton, Alta., for the sale of $2,-
600,000 7 per cent. 20-year bonds. Included in the issue are
the following amounts: — $221,618 for capital expenditures
which have already been incurred and charged to suspense
account; $831,638 for capital expenditures deemed necessary
to be incurred in 1921; $1,404,596 for repayment of the loan
advanced by the Imperial Bank to enable the city to redeem
the notes falling due last January, owing to the failure of
Morris Brothers. The additional amount in the issue is an
allowance for discount.
The offer of Wood, Gundy and Co. was for a sixty-day
option on the entire amount, the price being 92.50 or better,
and accrued interest payments in Edmonton funds for bonds
having principal and interest payable in Canada only. Pro-
vided $1,500,000 of the securities have been sold in the period
of the option, the authority to sell is to be extended for an-
other sixty days. One main condition of the sale is that the
city will sell no further bonds nor incur further capital ex-
penditures this year. It is also provided that no further
capital expenditures, excepting those which will be absolutely
unavoidable, will be made during the next two years. In
addition all tax arrears on lands in possession of the city
are to be transferred to the sinking fund board, and all re-
ceipts therefrom paid to the sinking fund board until all
notes outstanding against tax arrears have been fully pro-
vided for. These terms were accepted by the city after a
good deal of discussion, and at the price of 92.50 the cost
will be 7% per cent., although eventually a slightly better
rate may be secured.
Edmonton has been conspicuous lately as a result of that
unfortunate Morris Bros.' event, but that should not have
any particular bearing on the present issue. The city's
record in the past has not been as good as it might have
been, and the commissioners admit that there have been
some poor methods of financing. There has been an im-
provement recently, however. For the first quarter of this
year utilities showed a surplus of $84,240, while estimated
expenditures for 1921 are much below those for the previous
year. Assessment has been reduced 60 per cent., since 1914,
and at $79,119,000 is now considered to be upon a fair valu-
ation. It is also a notable fact, as pointed out in these
columns recently, that the city has been able to reduce its
tax rate from 45 mills to .39.90 mills. The sinking fund,
which is an important consideration, is favorably situated,
there now being a surplus, after marking down investments,
of $100,000. With consei-vative management Edmonton's
position, both financially s.nd otherwise, should show good
improvement in the future.
Mav 20, 1921
THE MONETARY TIMES
$25,000
CITY OF HALIFAX, N.S.
S;.% BONDS
Due Jul)) 1st. 1953 Denommaliom, $1,000
Principal and semi-annual interest pay-
able at Toronto, Montreal, Halifax.
Price : 92.85 and accrued interest
YIELDING 6%
Eastern Securities Company, Limited
ST. JOHN, N.B.
HALIFAX, N.S.
New Issue
PROVINCE OF ONTARIO
6% BONDS
Due, 1936
Principal and half-yearly interest payable in Canada.
DENOMINATIONS: Sl.OOO
Price 99.SO to Yield 6.0S%
BOND DEPARTMENT
The Canada Trust Coi*\ri\NY
14 King St. E. - - - Toronto
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C. H MA;AULAY J, p. NICOLLS. Not:iry Public.
WE SELL
Chauvin,Allsopp & Company, Limited
FARM LANDS
And other good property, EDMONTON DISTRICT.
VALUATORS
Ground Floor. McLeod Building - Edmonton, Alta.
X
Waghorn Gwynn & Co., Limited
Stock and Bond Brokers
Financial Insurance, and Real Estate Agents
VANCOUVER
A. J. Pattison Jr. & Co.
Specialist. Unlisted Securitie.
lOe BAY STREET - TORONTO
OLDFIELD,
KIRBY
&
GARDNER 1
INVESTMENT BROKERS |
Branches-SASKATOO.N
AND CALGARY
WINNIPEG
Canadian ManaRers
In\-ESTMFNT COHl'ORATI
ON OF Canada. Lt
London Office
4 r.r
cat Winchester St.. E.C.
(Cccuiaia A ^Z^o
O'n
INSURANCE ENGINEER AND BROKER
Al_l_ CLASSES OF INSURANCE WRITTEN
4TM F^OOR. -»«^0~D Bu.LO.NO. MOOSE JAW, Sask.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank Bldg., Edmonton, Alta.
BROOK & ALLISON
Real Estate Loans and Insurance
RENTAL AGENTS VALUATIONS MADE
REGINA, SASK.
LOUGHEED & TAYLOR, Limited
IMESTMEXT SECiRITIES
210 Eighth Avenue West
CALGARY ALBERTA
McARA BROS. & WALLACE
INVESTMENTS INSURANCE
INSIDE AND WAREHOUSE PROPERTIES
REGINA
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. \V. .MAHAN J A W EST.\IA\
President Managing Director
TOOLE, PEET & CO, Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cable Address. Topeco. Western L'n. and A.B C. 5th Edition
CALGARY, CANADA
THE MONETARY TIMES
Volume 66
CORPORATION SECURITIES MARKET
Stock Prices I<"irmer on Canadian Exchanges — Bell Telephone
Arrangfins New Financing — Preferred Shares of
A iifjlo- American Motors Being Offered
WHILE firmer prices this week suggested that construc-
tive forces were at work in the Canadian stock
marki'ts, it is not safe to assume that the upturn has com-
nifnced, for the industrial world is still without a safe and
solid foundation, and general financial and business condi-
tions are surrounded by a degree of uncertainty. Until
these are adjusted there can be no assurance of permanency
in advances of security prices, although some stocks will no
doubt sell higher in the meantime upon merits of their own.
h!ut there is danger in trading in securities which are out of
line with the general trend, for unless the undei'lying fabric
of the whole market is sound, an upward movement by any
individual stock will be insecure.
There is one factor which is preventing any progress
in industry and that is the labor trouble. When this has
been disposed of manufacturers will have established a
proper working br.sis, and trade will be able to proceed more
smoothly and equitably. The stock markets are waiting for
this, for strikes and such disturbances eat into profits. Some
encouragement is forthcoming in this regard, however, by the
announcement by the United States railway labor board that
there must be a general reduction of railroad wages. The
effect of this upon the New York stocks was but slight, be-
cause the exact scope of the revision will not be made known
until June 1, but it is apparent that such action will be a
great relief to railways and will also go a long way to in-
fluence labor difficulties in other industries. The new
schedule will have a direct interest for Canadian railway-
men, in view of the fact that their wages were raised last
year in conformity with the United States schedule.
Interest in the Canadian stock markets centered princi-
pally around National Breweries while Brazilian gave a good
demonstration of strength. It was thought that the success
of the Brazil loan in the United States contributed to the
new movement in the traction issue, although it is not likely
that Brazilian exchange will be improved thereby, for the
money is to be spent in the United States. Whatever in-
fluence there would be in this regard would be largely
jisychological.
Trading for the week resulted in a turnover on the
Montreal exchange of 76,902 shares of listed stock, as com-
pared with 76,164 in the previous week, while in Toronto
the figure was 12, .558, compared with 1.3,963. Bonds changed
hands to the extent of $1,401,920 in Montreal, as against
$1,520,500, while the turnover in Toronto was $1,170,100.
compared with $1,. 328,850 previously.
Hell Telephone Stock Issue
The Bell Telephone Co. of Canada has decided upon a
new issue of their stock amounting to $5,725,000. This new
stock, which will raise the capital stock of the company from
the present $22,900,000 to $28,625,000, will be offered to
shareholders of the company of record at the close of busi-
ness on May 31, for subscription at par, $100, in proportion
of one new share for every four old shares held.
Stockholders purchasing the new stock must file their
subscriptions at the office of the Royal Trust Co., Montreal,
before the close of business June 15 next, except shareholders
residing abroad whose application must be in by June 30.
Subscriptions will only be accepted for full shares. Hold-
ings that are not multiples of four shares can be adjusted
by purchase or sale of rights, but the company will neither
buy, sell or adjust rights.
Payment at the rate of $100 for each share may be
made in full on June 30, certificates to be issues therefore
as of July 1 when the next stock will rank for dividend,
or may be made in the following instalments: $50 per share
June 30; $25 September 30; and $25 December 30. The
fir.'^t two payments will carry interest at the rate of 8 per
cent, per annum from their date up to and payable on De-
cember 31, 1921. Certificates for stock purchased on in-
stalment payments will be issued January 2, 1922, or as soon
thereafter as possible.
This announcement seemed to adversely affect telephone
stock traded on the exchanges. That the offer to share-
holders was not considered much of a bargain was evident
from the fact that the demand for rights was not very active
and sales were made as low as fifteen cents.
New Offerings
Versailles, Vidricaire, Boulais, Ltd., of Montreal, have
purchased $600,000 serial first mortgage 7 per cent, bonds
of Lamontagne, Ltd. The bonds run from 1923 to 1933 and
are redeemable 5 per cent, each year and the balance at
maturity. Lamontagne, Ltd., are manufacturers of leather
goods and harness, and have a large plant in Montreal. The
offering will be placed on the Canadian markets.
Manninsr Brothers and Co., Ltd., Toronto, are offering
$4,500,000 8 per cent, cumulative preferred stock of the
.'Xnglo-.A.merican Motors, Ltd., at par ($100), with a bonus
of 40 per cent, of common stock. The Anglo-American
Motors, Ltd., has a capital of $10,000,000. of which $5,000,000
is common stock and $5,000,000 preferred stock. There is no
bonded indebtedness. The company has been! formed to
manufacture a Canadian car, the "La Marne," which is to
sell at $3,000, for the seven-passenger limousine model, and
$975 for the four-passenger junior model. Plans are being
prepared for plant and equipment, and the present financing
is for the purpose of providing land, factory and equipment,
and to provide sufficient working capital for the production
of the car. The board of directors of the company is as
follows: President. Col. C. R. Hill, president of Hill and
Co., Toronto; W. H. Hamblin, Winnipeg-; E. M. Gallant,
Toronto; F. J. Neale, Toronto; George P. Smith, Toronto;
P. Richard, Paris, France; secretary-treasui-er, A. A. Bolte.
Toronto.
Authorization has been granted to the Security Lumber
Co., Ltd., to increase its capital from $750,000 to $1,200,000
by the issue of 4,500 new shares. The company operates
under a Dominion charter.
UNLISTED SECURITIES
, Jr.. & Co.. Toiomo
Bid
Ask
l.i
18
«
99
4S
B'i
67., iO
26
88
91
86
92
89
VI
14.75
80
J7
SI
53
4.S
55
89
95
98
100
88
\0S
no
84
69
Bid
Ask
74
80
4.50
3.50
5.30
170
200
95
37
8
12
83
90
59
64
145
86
91
3..i0
4
SO
S5
90
79
122
124.50
3., SO
24
4.50
26
Alta. Pac. Grain. ..com.
" ....pref.
.Ashdown Hardw.->re5's.
Bndr'm-Henderson pref.
British Amer. Assurance
British American Oil ...
Burns. P. 1st MtRe. 6's..
Can. Crocker. \V heeler, pf.
Can. Machinery — com.
.... pref.
6-s.
Can. Oil com.
Can. Salt fi's.
Can. Westinghouse
Can. Woollens com.
■■ pref.
Cockshutt Plow pref. 7%
CollinmvoodShipb'dK 8-s
Cuban Can. Sugar. -pref,
Davies William 6's
Dominion Fire
r>om. lron&Steel5sl939
Dom. Power com.
■■ pref.
DunlopTire pref.
■■ 6's.
Eastern Theatres., .com.
Famous Players. . ..pref.
Goodyear Tire. ...7% pfd.
Grdn.lr'nside&FareB's
Ciunns. Limited pref
Harris Abattoir 6's
Home Bank
International .Milling.6's.
Imperial Oil
King Edward Hotel.com.
King Edward Hotel.. 7"s.
Loew's, Buffalo com.
London. . . .com.
Manufacturers Life
Massey-Harris
Merchants Fire
Mexican Nor. Power. .S's
Morrow Screw S's
Murray-Kay pref.
National Life
Ncilson. Wni 6's.
North American Pulp....
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Peoples Loan & Savings -
Provinciale Bank
Riordon com.(newstk.)
..pref. (new stk.)
R.Simpson pfd
Southern Can. Pow . pref
Sterling Bank
Sterling Coal com
Toronto Paper 6's
Toronto Power. 5's ( 1924)
Tru=:t & Guar
United Cigar Storescom
-pref.
Western Assurance
Western Grocers. - .pref.
VVhalen Pulp com.
■' ...7% Deb,
1 ..55
8
62., 50
1.04
2.40
11.50
May 20, 1921
THE MONETARY TIMES
WE OFFER
Alberta Municipal District
AND
Rural School Bonds
Maturing serially in / 0 to 20 years.
To yield 7i% to 8%
W. Ross Alger & Company
INVESTMENT BANKERS
Royal Bank Chambers Bank of Toronto Bldg
CALGARY EDMONTON
The Bond House of British Columbia
WE ARE IN THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
yVeu; Issue $37,000.00
CITY OF TRAIL, B.C.
7% Bonds
Payable in New York. Toronto and Trail.
Due March ht. 1941. Legal Opwwn: Malone. Malonc & Long
In consideration of Trail's excellent financial standing we
unhesitatinKly recommend these bonds for investment.
Special Lit cular on request. Subject to prior sale.
PRICE: lOO AND INTEREST
Gillespie, Hart & Todd, Ltd.
Covcrnmeul. ,\/un,c,> j/. Corporation and f-o,eign Bonjs
Main Office: 711 Fort St. - VICTORIA, B.C.
Branch - - VANCOUVER, B.C.
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direc> Private Wire)
Grain Elxchange
Calgary, Alta.
Cabli
Add re
s ■■ Esl.iUs." Cali;ary.
li.mkers : Union lie
.1* of C
Code Western Union
anadii.
J.
H.
GOODWIN
LIMITED
FINANCIAL
AGENTS 1
Mol
sons
Bank Building
CALGARY. Alta.
1-
.KrM land CUV PROPERTIES
MORTGAGES
.MINING PROPERTIES
ESTATES .MANAGED
RHNTAL
AGENTS VALLATIONS
FIRE INSURANCE |
■■■ ■■■■■■■■■■■■■■■■■
Well Secured
Bonds for
Investment
Yielding 6% to 8%
We buy, in whole or in
part, issues of securities
for the financing of cor-
porations, municipalities
and provinces.
Write for Investment List
Greenshields & Co.
INVESTMENT BANKEKS
17 St. John Street, Montreal
H King Street East
TORONTO
Central Chambers
OTTAWA
■ ■■■■■■■■■■■■■na-ii
48
THE MONETARY TIMES
Volume 66
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
istocks
Abitibi P. HP
• pfd.
Asbestos Corp
pfd.
Ames-Holden pfd.
Atlantic Sugar
Bell Telephone
. rights
Brazilian T.L.& Power
B.C. Fish
Brompton Pulp & P...
Canada Cement .......
...pfd.
CanadianCar
•■ ....pfd.
Can. Con
Can. Cottons
pfd,
Canadian Gen. Blec...
C. P. R
Can. Steamship
■' ■• pfd.
" ■■ Deb.
" " Vot.Trustj
Con. Mining & Smel...
Del. Rys
Dominion Bridge
Do-ninion Glass
■■ ...pfd.
Dom.Iron pfd.
Dom. Steel Corp
.ptd.i
Dominion Textile
■• ...pfd.
Goodwins. Ltd pfd.
Howard Smith ...I
•• ....pfd.i
Illinois Tract '
•■ pfd..
Lake of the Woods.. |
Laurentide
Lyall
Macdonald Co
Mont. Cottons I
pfd.|
Montreal Powc-.
■■ ..Deb.
Telegraph...
National Breweries —
Ogilvie pfd,
Ontario Steel
Penmans
pfd
Price Bros
Quebec Ry. L. H.&P..
Riordan Pulp &• P
Sha«iniB;in W.&P ...
St. Mail
Sales Open High Low Close
1033
I94S
1000
She
,-\Vi
•Spa
pfd.
lish River
■• pfd.
Steel Co. of Canada ..
■• ■• •• pfd.
TooUe Bros
Toronto Ry
Tuckett
Wabasso
WayagamacU P. & P..
Winnipeg r?y
■tanks
Commerce
Hamilton
Hochelaga
Merchants
Molsons
Montreal - . .
Rationale
Nova Scotia.. .
Royal
Standard
Toronto
Union
Itoiuls
Asbestos Corp
I?ell Telephone Co.
Can. Car
Ce
Can. Cottons
Can. Rubber
Cedars Rapids Mfg....
City Mont. Dec. 6's. lH'-'2
■■ Mayfi's, 192.1
" SeDt.6-s.l9'.'.1
Dom. Can.W.Loan.l9
34i
W 40
93.13
98.75
nnNTRKAl— Continued-
Bonds
Dom. Canners-.
Dom. Cottons . .
Dom. Coal
Dom.Iron
Dom. Te.-itile ...
L.il<eof Woods
National Breweries .
Ogilvie Flour
Ontario Steel
Penmans ..
! Br
ebec Ry.L. H.&P..
Sales Open High Low Close
500 87 J
lOOOO' 83 J
17500 63
62|
TOKOiMTU— Meek Cndeil .May ISIh.
Atlantic Sugar
Bell Telephone
Brazilian Tractic
. pfd.
■ights
Canada Cen
Canners.. .
Canadian Pacific R.
Can. Car & F p
Can. Gen. Elec. ...
. P
Canada Steamship.
Con. Gas
Coniagas
Crows Nest..
Sales Open High Low Close
lllii
Mackay Companies
....1
Maple Leaf
I
N. S. Car
Nipissing.
N. S. Steel
Porto Rico pfd.
Prov. Paper
Quebec R.L.H. & P
Riordon
■■ pfd.
Steel Co
npany
Tooke
Toronto Ry
Trethewey
Tucketts
Twin City
Winnipeg Elec
Kanks
Dominion.,
Hamilton.
Imperial ,
.Merchants
Nova Scoti:
Royal
Standard..
Toronto.. . .
(Kin and Trust
Lil Estate
ronto Gen. Trusts.,
Kioto .Mtg
2000
iooo
74i
16i
22.25
66i
24j
TORONTO— Continued
War Loans
Sales
Open
High
Low
Close
Dom. Can.W.Loan. 1925
18600
95
95
94.90
94.90
1931
5600
93
93
92 SO
93
1937
24100
96.30
96.80
96.30
96., SO
Victory Loan 1922 ....
205600
98.50
99.15
98 50
98.50
1923 ....
125800
97.70
98. iO
97.60
98.10
1927 ....
13450
97, ,50
98.35
97.50
98
1937 ....
127900
99.25
99.25
99
99
1933 ....
241450
96.75
97.35
96.75
97.35
1924
48450
96.25
96.80
96
96.70
1934 ....
3378C0
95
95.10
94.90
94.95
WI.\MIPE«— Week ended .Hay IJtli.
Victory Loan 1922..
■■ 1923..
" 1924..
" 1927..
•■ 1937..
" 1933..
■■ 1934.
War Loan 1925....
•■ 1931....
■■ 1937....
Great West Perm..
Sales
Open
High
Low
7650
98.80
98.90
80
20050
98
98.10
97.75
12300
96.50
96.70
96.50
3150
97.90
97.90
97.75
32100
99.15
99.75
99
24750
97.25
97.45
97.15
34150
94.95
94.95
94 SO
100
95
95
95
500
93
93
93
1100
96 75
96.75
96.60
1
104
104
104
1
55
55
55
10
106
106
106
80
98
96.50
97.75
99.30
97.20
94.90
95
93
NEW YOKK— Week ended IMa.v I4tli.
Canadian Pacific
Canada Southern
Nova Scotia S. & Coal.
Granby Consolidated •
Dom. of Can. 5% 1921
5i% 1921
5% 1926
' 5i% 1929
" '■ ■• 5% 1931
Ontario Silver Mining.
Sales Open High i Low Close
18000
400
1000
43000
61000
51000
48000
1300
tONHOX, Eng.— Week ended Way 7l1i.
Alberta
B.C. SVi
)deb. 1922..
■ii'^.
1930 50...
3% Reg....
4% 1940-60.
.... 4*?o 1920-25
Calgary 4i% deb
Edmonton 5% bds. 23-53
,5% debs
Manitoba 4% deb. 1928.
Moose Jaw 4 J% deb....
Montreal 4i% Reg
4% Reg. '48-50
Nova Scotia 3%
N 'wfoundland 3*% bds.
Port Arthur 5% deb....
Quebec 4% deb. 1888..
•■ 3%
Toronto 34% debs
4i%debs
Vanc'ver 4% cons. '50.2
Victoria 4% cons
3% cons
3i% 1923
4i%cons
44% deb, ■■>{)-2r:
Wi
54°,
lipeg 4*% 1H43-B3
4%cons, ,-
ICailnays
Can. Nor. 4% deb
•■ ■■ 4%cons.deb
" Pac, 4% deb
Can. Pac
" 4% deb
" 4% pfd
G.T.P. Br. 4% bd 1939
G.T.P.4%deb
G.T.P. 4% 1955
Gr. Trunk. -.4% guar
Or. TrunkS% 1st. pfd.
Gr. Triink5",.:nd pfd.
- - ■ ;!rd pfd.
Gr. Ti-
ll; J'
Open High Lo
May 20, 1921
THE MONETARY TlilES
ACTUARIAL SOCIETY OF AMERICA MEETING
Some Unpopularity Among Agents and Some Misstatements
in Applications are Features of Non-Medical Insur-
ance in Canada, Says D. E. Kilgour
TWO Canadians, D. E. Kilgour, actuary of the North
American Life, Toronto, and J. D. Buchanan, actuary
of the London Life, London, Ont., gave addresses at the semi-
annual meeting of the Actuarial Society of America held in
Richmond, Va., May 19 and 20. Mr. Kilgour spoke on "Life
Insurance Without Medical Examination," reviewing the
place of medical examinations in life insurance, and outlin-
ing the experiment now being made by several companies in
Canada. The decision was hastened, he said, by the agita-
tion among a number of the medical associations for in-
creased medical fees. The companies are operating on
practically the same basis. Proceeding, Mr. Kilgour said : —
"A faii-ly complete family and personal history is called
for, in fact practically all those questions, included in the
ordinary medical reports, which do not demand a clinical
observation or professional opinion. Insurances are issued
on the same terms for amounts of $1,000 and under to both
men and women. In each case a mercantile report is called
for and a scheme is now on foot to establish a central bureau
for the purposes of informing the contributing companies the
names of applicants applying for additional 'Non-medical'
insurance. By this means much of the personal adverse
selection is hoped to be avoided. I regret that sufficient time
has not elapsed to furnish the society with some informa-
tion as to the success of the operation of these companies.
While the executive officers generally regard the business
as satisfactory, one medical officer volunteered the informa-
tion that there appeared to be an alarming number of mis-
statements in the 'Non-medical' applications. I had occasion
to look over a few days' business of one company and as far
as superficial observations went, the class of the business,
with one or two exceptions, seemed to be normal.
"I have taken occasion to enquire through a, number of
Kgents and others in touch with the business, and from my
knowledge of the situation 1 do not believe that there has
been any insistent or general demand from the agents
throughout the country for their companies to conduct the
'Non-medical' business. Some have expressed the fear that
it would result in the reduction of the average amount of an
application. In fact many agents make a point of endeavor-
ing to raise the amount of the applications at the time of the
medical examination and claim considerable success in doing
so. I have been told by an official of an underwriters' as-
sociation that the agents repi-esenting the 'Non-medical' com-
panies are by no means a unit in approving of the system
and that they are not finding it working out as satisfactorily
as they had expected. However, on this point I would
hesitate to express any opinion. The repi-esentatives of these
companies will be able to furnish authentic information and
possibly will have some facts to give us at this meeting."
Industrial Insurance
Jlr. Buchanan gave a thorough account of how Indus-
trial Insurance was started and how it operates at present.
Regarding the actuarial basis in Canada, he said: —
"In Canada the companies are allowed to employ in
valuation any of the standard tables of mortality used in the
construction of their tables, with interest at a rate not
exceeding 3 '4 per cent. The Dominion Act provides that
Whole Life Industrial Policies and Endowment Industrial
policies maturing at age 80 or any higher age shall be
valued upon the following basis, namely: Policies issued
in any calendar year shall be valued at the end of such
calendar year as if then just issued, and at the end of the
succeeding calendar years as if in force one, two, three, or
more entire years, as the case may be. In the case of
policies on other plans, a deduction from the full level net
premium reserve is allowed during the first four years on a
basis similar to that for Ordinary insurance."
MONTREAL STOCK EXCHANGE MEETING
At the annual meeting of the Montreal Stock Exchange,
held on May 13, the former governing committee was re-
elected, as follows: President, C. Simpson Garland; vice-
president, H. Austin Ekers; secretary -treasurer, B. H. Por-
teous; C. H. Branchaud, G. W. S. Henderson. W. R. Mac-
Dougall, Purvis McDougall, J. Herbert Redpath, Hope Scott;
secretary, John M. Miller.
NEW MONTREAL BOND FIRM
Lieutenant-Colonel J. H. Rorke and Arthur Webb make
the announcement that they hr^ve opened an office at 136
St. James St., Montreal, for the conduct of their business
of investments. Both are well and favorably known in
financial circles in this city. Col. Rorke is a newspaperman,
with a wide experience in connection with Canadian publi-
cations, a^nd has been for about a year connected w-ith the
sales department of Hew R. Wood Co., Ltd., bond dealers.
LLOYDS BANK, LIMITED
Nineteen-twenty was a year of expansion for Lloyds'
Bank, Limited, of London, England. Net profits amounted to
£3,237,741, as compared with £2,876,302 in 1919. Dividends
at the rate of 16% per cent, were paid, as compared with
18% per cent, in 1919. In this regard, however, it must be
mentioned that larger appropriations were made for bank
premises account and for special contingency for writing
down the bank's investments. Furthermore, the paid-up
capital was increased from £9,420,544 to £14,137,796. The
balance carried forward amounted to £543,864, as compared
with £505,420.
The following comparisons taken from the balance sheet
show the changes which have taken place: —
1920. 1919.
Cash in hand and with Bank of
England £ 51,153,076 £ 57,587,215
Cash at call and short notice... 14,747,688 14,621,755
Bills of exchange 76,037,123 57,491,863
British government securities.. 64,041,038 66,232,570
.•Vdvances including 'stock ex-
change loans 151,079,173 135,763,591
Current, deposit and other ac-
counts 345,028,984 324.711,755
Reserve fund 10,000,000 9,675,105
Further evidence of the expansion of the institution is
seen in the fact that nineteen new branches were opened in
England last year, as well as a large number of sub-branches.
Lloyds Bank, Limited, is an institution with world-wide
connections. In Canada it is represented through the Im-
perial, Commerce, Montreal, Provinciale, and Royal banks
and the Dominion Express Company. Since 1865 fifty private
and other banking houses have been absorbed into the Lloyds
organization.
TOWN OF PEMBROKE, ONT.
DEBENTURES FOR SALE
Sealed tenders will be received by the undersigned up
to 3 p.m., Wednesday, May 25th, 1921, for the following
debentures: —
$31,369.90 of Local Improvement 10-year 6%.
$11,606.31 for Waterworks purposes 20-year 6%.
$37,348.29 for Waterworks purposes 30-year 6%.
All to be repayable in equal annual instalments of prin-
cipal and interest.
Highest or any tender not necessarily accepted.
S. L. BIGGS,
Pembroke, Ont. Clerk-Treasurer. 558
50
THE MONETARY TIMES
COKPOKATION FINANCE
Price Brothers' Report Shows High Earnings for Four
Months — Mattagami Made Satisfactory Showing —
Granby Consolidated had Deficit — Surplus
Has been Reduced to Low Figure
Grand Trunk Railway. — Revenue returns for the month
of March, as reported by' the head office in London, show an
increase in net of £68,400 over the same month of 1920, and
: n increase of £42,800 over the previous month. For the
tirst three months of the year, the increase in net was £306,-
500, there. having' been a deficit for that period last year of
£205,100. The statement for March and for the first three
months shows the following result: —
For March. 1921. Increase,
Gross receipts £1,278,700 £ 95,900
Expenses 1,155,800 27,500
Net £ 122,900 £ 68,400
For Three Months.
Gross receipts £3,772,200 £593,200
Expenses 3,680,800 286,700
Net £ 91,400 £306,500
Granby Con.solidated Mining and Smelting Co. — The
report of the company for 1920 shows a deficit of $687,011,
r.'S compared with $984,409 for the year ended June 30, 1919.
Gross receipts were $6,684,123, and operating costs $6,323,-
813, which compare with $6,561,099 and $6,660,054 in 1919.
But interest, taxes, etc., amounted to $1,047,321, as against
$885,452 previously.
No dividends were paid in the period according to the
report, while in 1919 $1,312,537 was disbursed, and the de-
ficit was carried to surplus, reducing that account from
$1,124,409 to $497,298.
The bal&nce sheet shows many changes, which is only
natural in view of the circumstances. Principal comparisons
are as follows: —
1920. 1919.
Total assets $24,906,360 $25,081,361
Property 18,312,336 18,061,627
Investments 671,634 579,056
Copper on hand, etc 2,764,176 2,346,044
Metals in process 363,974 829,591
Victory bonds 20,884 538,138
Bonded debt 3,991,400 1,709,800
Bank loans 4,071,019 5,983,901
The report states that to meet conditions, reductions and
economies have been effected in every possible direction, a-nd
through increased efficiency in operation, production costs
during the last half of the year were materially reduced.
Wages have been cut, and there has also been a downward
trend in costs. These have not been sufficient to offset the
decline in copper prices and management has been con-
fronted with the serious alternative already adopted by
other companies, the majority of which have entirely ceased
production. It is hoped, however, that the natural law of
supply and demand will ma^terially improve recent conditions,
and permit uninterrupted operation of properties.
Mattagami Pulp and Paper Co. — The first report of the
company has been issued, being for the seven months ended
December 31, 1920, and shows net profits resulting from the
company's operations of $1,091,779, from which must be de-
ducted interest on bonds, debentures and banlv loans amount-
ing to $187,423, leaving net profits, after interest charges, of
$904,355, from which has been written off to depreciation
and other reserves $369,904, leaving net earnings after inter-
est and depreciation of $534,421. Prom this surplus there
was deducted losses arising from the operation of the com-
pany's plant during its construction period and for depre-
ciation of inventories, etc., amounting to $346,353, leaving a
b&lance carried forward to profit and loss account, as at
December 31, 1920, of $188,068.
Commenting upon the report, Duncan Chisholm, presi-
dent, said: "Due to the necessity of cai'rying on construc-
tion during the year, and the handicap of high labor and
material costs, your company was unable to pasrticipate fully
in the extremely profitable markets prevailing during the
summer months. The operations for the year, however,
have resulted in a substantial profit, and by utilizing same
your directors have been able to place your company in a
most efficient operating position, with inventories, logging
operations, etc., written into the balance sheet at most con-
servative figures, both as regai'ds quantities and unit costs.
"In December, the demand for your company's product
showed considerable falling off, and a dulness has prevailed
during recent months in the market for all grades of pulp.
This market condition, your directors believe, is only tem-
porary, but as your directors are of the opinion that it is
not advisable to store large quantites of pulp for which there
is no market immediately E'Vailable, the operation of the
plant has been suspended until the market revives. This
period of suspension has been taken advantage of to make
certain repairs and adjustments, and the plant is now ready
to operate at high efficiency immediately on there being a
demand for pulp."
Current assets are given in the report as $2,001,076, and
current liabilities $1,484,306. Total assets are $9,706,247.
Price Brothers and Co., Ltd Covering a period of four
months from November 1, 1920, to February 28, 1921, the
report of the reorganized Price Brothers Co. is a good one.
showing profits amounting to $1,135,450, as against $2,055,-
782 in the full year ended February 28, 1920. After deduct-
ing interest and sinking fund requirements of $141,992, there
remained $993,458 in the form of net earnings available on
the capital stock outstanding of $42,683,200, or at 'the rate
of 2.32 per cent. For a full year earnings at this rate would
indicate practically 7 per cent, earned. After deduction of
% of 1 per cent, dividends, or $341,465, there remained a
surplus of $651,992 to be carried forward into the current
year. When the company was reorganized last November,
the old capital stock was distributed at the rate of five shares
in the present company for each one share of the old held.
On the old capital of $8,534,200 earnings in the four months
recently ended were at the rate of 11.6 per cent, or equivalent
to 34.8 per cent, for a full year.
The balance sheet section of the report indicates a healthy
financial position. The liquid position of the company, while
not as good in 1920, is still strong. Total current assets
are given as $7,595,144, as compared with $7,179,918 in 1920,
the principal change being in inventoi-y, which is up at $4,-
308,255 from $3,934,755. Current liabilities are higher at
$3,780,183, compared with $3,088,842. Bank loans showed a
decrease of about $500,000, but bills and accounts payable
increased from $983,614 to $2,309,275. From these figures
it will be seen that the net working capital is $3,814,961, as
against $4,091,076 in the previous showing.
The other important changes in the balance sheet are as
follows: —
1921. 1920.
Fixed assets $45,497,018 $17,201,439
Total assets 53,386,709 24,675,568
Capital stock 42,683,200 8,534,200
Bonded debt 4,978,016 5,172,098
Reserves 1,092,936 2,871,654
In their report to shareholders, directors view the show-
ing with satisfaction, but point out that during the period
under report high prices ruled in newsprint and allied com-
modities and that as good results in the near future cannot
be looked for. On account of the period of depression di-
rectors have decided to postpone the projected erection of
a new pulp and paper mill at Saguenay until such time as
the price of commodities and labor are more stable.
May 20, 1921
THE MONETARY TIMES
THE STERLING BANK
OF CANADA
Annual Report Year Ending
April 30, 1921
GENERAL STATEMENT
LIABILITIES
.Noii-» (if the H.icik in circulation 51.210.409.00
Deposits not UiMiing Interest f3,643,S55.7il
Deposits bearing Interest (Including interest accrued to
date of statement) _ 13.588.7o6.06
17.232,611.85
Due to Dominion GoTerniiient _ _ 3.100,000.00
Balances duo to other Banlts in Canada _ _ 280,094.83
Acceptances under Letters of Credit 3,200.00
Total Liabilities lo the Publh- t21.826,3I5.68
Capital Stock paid up -! ,j:i2.200.0O
Reserve Fund 300,000.00
Dividends unpaid . 3.419.60
Dividend No. 57, payable 14th Jfay 24.ftl4.0O
Balance of Profit and Loss Account carried forward. 37.564.90
1.797,828.50
$23,624,144.18
ASSETS
Current Coin held by the Bank _
Dominion Notes held
Deposit with the Minister for the purpose of tlio Cir-
culation Fund
Notes of other Banks
Cheques on other Banks .. .. .
Balances due by other Banks In Canada !
Balances duo by Banks and Banking Correspondents
elsewhere than in Canada _ „
Dominiiiii and Provincial Government Securities not
exceeding market value -
Canadian Municipal Securities, and British Foreien
and Colonial Public Securities other than Cana-
dian - .J
Railway and other Bonds. Debentures and Slocks not
exccedintr market value
Ciill and Short (not exceeding thirty days) Loans In
Canada on Bonds, Debentures and Stocks ..-
Oilier Current Loans and Discounts in Canada (less
rebate of interest) - — —
Overdue Debts (estimated loss provided for)
.Mortgages on Real Estate sold by the Bank
Bank Premises, at not nime than cost, less amounts
rllle
off
Liabilities of Customers under Letters of Credit, as
per contra
Other Assets not included in the foregoing (prlnci-
imllv consisting of Interest accrued on Government
Bonds)
S115.664.30
2.114.062.00
85.000.00
145,032.73
712.538.03
6.564.00
328.959.21
$3,517,820.27
9.197,940.47
2,766.064.97
337.173.94
123.269.71
$1
6.754.094.36
8.668.79
2.750.00
525.025.29
3,200.00
- 7.681
$23,624
,S74.S2
,114. IS
G. T. SOMERS. rresident.
Tcuonto, April 30th, 1921.
AUDITOR'S REPORT
This statement has been duly vouched by comparing all entries with the
books at the Chief Office and certified Returns from the Branches and in my
opinion is properly drawn up so as to exhibit a correct view of tlie condition of
the Bank.
Cash and Securities have been checked at the Chief Office at 30th April,
1921, as well as at anotlier time during the year, as reiiuired by section 56 of
the Bank Act.
I have obtained all the information and explanations required, and am of
the opinion that the transactions of the Bank, which have come under my
notice, have been witlilu the powers of the Bank.
J. J. ROBSOX, L.I.A.,
Auditor. 569
Proposal for Exchange
of Bonds
To the Bondholders of
Toronto Paper Manufacturing
Company, Limited
Till-: llOUAKD S.MITII I'Al'KK MILLS, LIMITED,
lias decided to extend until June 2nd. 1921, the offer of
e.xcliange made by circular letter dated March 2nd,
1921. apiilying to holders of 6% Bonds due 1942 of the
Toronto Paper Manufacturing Company, Limited.
The Company offers to the holders of such 6% Bonds a
like amount in the 7% Twenty-Year First Refunding Mort-
gage Bonds of Howard Smith Paper Mills, Limited.
Of the presently authorized amount of $3,500,000 of this
issue there is held in escrow $2,070,000 for the following
purposes, viz :
To retire the 6% First Mortgage
Bonds due 1942 (Toronto Paper
Manufacturing Company, Limited).. $690,000
To retire the 6% First Mortgage
Bonds due 1934 (Howard Smith
Paper Mills. Limited) 800,000
To cover unpaid balance of price of
timber limit- 580,000
$2,070,000
Upon the retirement of all sucli Bonds, by exchange or otherwise,
and upon payment of the balance due on timber limits, the presently
authorized issue of Bonds will be secured by a first mortgage and
charge on the entire assets of the Company.
This exchange will have the following advantages for the holders
of the Underlying Securities:
1. The holder will receive an extra one per cent, on his investment.
2. The holder will receive In place of a Bond which is now secured by
the properties of one Company only, a Bond which is secured by
the properties of both Companies.
3. The entire consolidated net earnings of the Howard Smitli Paper
Mills. Limited, will be available for interest charges and Sinking
Fund as against the earnings of only one Company, and the prin-
cipal and interest on the new Bonds will be payable both in Mont-
real and New York.
Since the issue of these Underlying Securities the activities of the
Company have so broadened that it must now have available for its
purposes financial machinery which can be adapted to the changed con-
ditions in the financial markets and to new conditions as they arise.
The expansion of the business of the Company calls for a consolidation
of its properties, to which end it is necessary that the portion of the
property located at Col nwall and vested in the Toronto Paper Mfg. Co.,
Limited, should be acquired by the parent Company which already
owned the entire Capital Stock of the Toronto Company.
The Directors of the Company feel that with the plan as herein out-
lined carried out, the Company will be in a much stronger position and
capable of competing advantageously in the markets of the world.
You are requested to deposit your Bonds with the Montreal Trust
Company. 11 Place d'Armes. Montreal, for exchange, as soon as possible.
already been deposited
Arrangements have been made with the Montreal Trust Company
to issue Interim Certificates entitling the holder to Bonds of the present
issue of an amount equal to Underlying Bonds deposited for exchange,
and Definitive Bonds will he delivered against the surrender of such
Interim Certificates as soon as the same are ready for delivery.
HOWARD SMITH PAPER MILLS, LIMITED
THE MONETARY TIMES
KECENT FIRES
Loss for Week Totals $1,410,000, Compared with $939,000
Last Week — Old Fort Grounds, Toronto,
Suffered Heaviest Loss
Ainherstburg, Ont. — May 15 — Residence of Capt. John
Jones, Dalhousie St. Loss, $3,000. No insui-ance.
Benito. Man. — May 18 — Dawson garage and the Benito
Hotel. Loss, IflOCOOO.
Brandon, Man.— May 10 -Willis Theatre. Loss, $30,000;
insurance, $15,400.
Brockville, Ont.— May 17— Boat livery of Mrs. Henry
Mathen. Loss, $25,000, partly insured.
Cornwall, Ont.— May 16 — Residence on Raymond farm,
near Heckston. One fatality. Goldfield cheese factory. Loss
partly insured.
Desboro, Ont.— May 15— Saw and gristmill of R. Milburn
and the house of Wm. Gobert. Loss, $7,000; insurance, $800.
Eagle Butte. Alta.— May 6— Residence of R. L. Roth.
Loss, $15,000, covered by insurance.
Eganville, Ont.— May 16— Woollen mill of C. J. Childer-
hose. Loss, S30.000, paatly covered by insurance.
Emerald, Ont. — May 10 — General store, occupied by H.
A. McGinn. Loss, $5,000; insurance, $3,000.
Halifax, N.S.— May 12— Building occupied by H. H.
Marshall, Ltd., on George St.
Hull, Que. — May 11 — Factory occupied by Albert Taylor
at Youville Sf. and Laurier Ave. Loss, $1,500, covered by
insurance.
Jonquieres, Que. — May 7 — Residence of A Lavoie. Cause,
overheated stove. One fatality.
Kingsville, Ont.— May 14 — Brown-Wigle Woollen Mills
and the tobacco barns of Ben Jasperson. Loss, $500,000.
Parrsboro, N.S. — May 12— Residence of A. O. Seaman,
Upper Main St.
Quebec, Que.— May 15— Montcalm Hotel. Loss, $100,-
000; insurance, $81,000.
St. James, Man. — May 5 — Two houses occupied by Mrs.
E. Hudson and A. Stutter at 329 and 335 Harcourt St. Loss,
$7,500.
South Bay, N.B. — May 12 — Residence of Samuel Peter-
son. Insurance, $1,900.
Strathroy, Ont.— May 13— Barn of James Jervis, EUor
St. Loss, $1,000; insurance, $400.
Sussex, N.B.— May 12— Store of James R. McLean,
Main St. Loss covered by insurance.
Tilsonburg, Ont. — May 12— Barn on the farm of Harry
Higgins.
Toronto, Ont.- May 18— Building in the Old Port
Grounds, between Bathurst St. and Strachan Ave., owned
by the Dominion government and containing army stores.
Loss, $500,000. No insurance.
Verona, Ont.— May 18— General store of Mr. Amey, L.
Vannest's furniture store, A.O.U.W. Hall, and four resi-
dences belonging to E. L. Amey, J. Dier, H. Wagar and Mrs.
Snider. Loss, $85,000, with some insurance.
Woodside, Man.— May 11— School house. Cause, incen-
diarism. Insurance, $800.
ADDITIONAL INFORMATION CONCERNING FIRES
Bury, Que.— April 12— The mill and machinery of the
Bury Pulpwood and Lumber Co. was damaged by fire. The
loss is $5,000, with insurance of $2,500 in the Atlas Assur-
ance Co.
Manitoba. — The Fii-e Commissioner's statement for the
month of March states that during the month there were
157 fires with an estimated loss of $141,139. The following
were the causes of fires: Stoves, 43; matches, 19; smoking,
16; chimneys, 16; hot ashes, 13; spontaneous combustion, 8;
and explosions. 4. The following is the class of struc-
ture destroyed or damaged: Dwellings, 83; stores, 17; farm
property, 16; apartment blocks, 8; offices, 3; theatres, 2;
garages, 2.
Pickering, Ont. — May 5 — A frame building, occupied by
the Rose Flax Mill, was "damaged by fire. The loss is $9,000,
with insurance of $5,000.
Vancouver, B.C. — The Fire Chief's report for the month
of April states that during the month there were 95 alarms,
with a loss of $47,096. The following are the causes of the
fires: Bush fires, 16; chimney fires, 16; sparks, 24; electrical
origin, 3; matches, 2.
NEWFOUNDLAND'S TEMPORARY BORROWINGS
HEAVY
Owes Bank of Montreal $1,500,000 and Royal Bank $300,000
— Control of Codfish and Sugar Also Discussed
in Legislature
FISH and government finance has occupied most of the
attention of the session of the Newfoundland legisla-
ture, which commenced on March 30. In his opening speech
the governor intimated that expenditures would have to
come down, as most of the revenue was derived from ad
valorem duties and would therefore show a reduction this
year. He also referred to the marketing of codfish, the
colony's staple product, which is now in the hands of the
Codfish Exportation Board. Other matters which would come
before the House, he said, were the exportation of pulp-
wood, the St. John's city charter, inland and coast trans-
portation, and the exploration of oil areas.
The debate on the speech from the throne lasted until
April 27, and was featured by an opposition resolution con-
demning the control of the export prices of codfish, which
was defeated. The government was also criticized for not
floating the loan of $1,500,000, authorized last year, while
it borrowed from the Bank of Montreal at 5 per cent. Hon.
Mr. Coaker was criticized for occupying the position of min-
ister of marine and fisheries and chairman of the advisory
board, while he remained head of a large fish exporting com-
pany. The sum of $500,000 had been appropriated to buy
fish for export, and it was alleged that there had been dis-
crimination in the purchases. The voting upon the speech
from the throne showed the government to have 18 votes
against the opposition's 13. Later in the session the govern-
ment was also criticized for maintaining the price of sugar
after the sharp decline had taken place elsewhere.
The legislation thus far introduced includes a bill to
amend the Crown Lands Act, 1918, a bill respecting the
Board of Pensions Commissioners, a bill respecting the High
Commissioner for Newfoundland in the United Kingdom, a
bill regarding the Bell Island Iron Oi'e Tax agreement, one
f'bout the exportation of timber for special purposes and
one for the repeal of the Exportation of Salt Codfish Act.
Temporary Loans
Regarding temporary financing, the prime minister
stated that upon application to Mr. Jubien, manager of the
Royal Bank in St. John's, for a loan of $150,000, the latter
had required that a council minute first be passed guarantee-
ing the repayment of this amount and also of the $300,000
already owed on current account by December 31, 1921. The
government's counter proposal to repay by December 31,
1922, was not acceptable to the bank.
In answer to Sir Michael Cashin as to the temporary
loan after the close of last session, the prime minister re-
plied that $1,500,000 had been borrowed from the Bank of
Montreal at 5 per cent. Of this amount $1,250,000 was paid
to the railway commission and $250,000 placed to the surplus
fund, which was borrowed from this fund and also paid to
the railway commission.
On May 2 Hon. Mr. McDonnell referred to a proposal
for the formation of a company with $25,000,000 capital to
develop resources on the west coast.
May 27, 1921
THE MONETARY TIMES
An Agent's and Broker's Company,
writing all Lines of Casualty
Insurance and Guarantee
•INDEMNITY •
COMF>ANV
CHARLES H. HOLLAND, President
HEAD OFFICE FOR CANADA
Royal Insurance Building
MONTREAL
RICHARD J. BOND
Superintendent for Canada
TORONTO
Royal Insurance Building
JULIAN H. FERGUSON
Superintendent for Ontario
Norwich Union
FIRE INSURANCE
SOCIETY LIMITED
(Founded 1797)
Norwich, England
Fire Insurance
Accident and Sickness
Employers* Liability
Plate Glass
Automobile Insurance
Head Office for Canada :
NORWICH UNION BUILDING
12-14 Wellington St. E., Toronto
BUSINESS FOUNDED 179S
INCORPORATED IN CANADA 1897
American Bank Note Company
ENGRAVERS AND PRINTERS
BANKNOTES, BON DS. MUNICIPAL DEBENTU RES, STOCK
CERTIFICATES, CHEQUES AND OTHER MONETARY DOCUMENTS
Special SaSei^uards Against Counterleitinii Work Acceptable on all Stock Exchange a
Head Office and Works : OTTAWA 224 Wellington St.
BRANCH OFFICES
TORONTO
19 Melinda Street
WINNIPEG
Union Bank Bldg.
Always After Agents
FOR
Fine Fields
Considerable desirable territory
men who would make capable
and
tor negotiation with
iiTt representatives.
Union Mutual Life Insurance Co.
Portland, Maine
Address: ALBERT E. AWDE, Si. pi. of Agencies
E. J. ATKINSON. Manager for Ontario.
303 Manning Chambers. 72 0..,.n S West. Toronto. Ontario
c ar : Eastern Ontario,
ng, Montreal. P.Q.
A Newspaper Devoted to
Municipal Bonds
'T'HERE is published in New York City a daily
and weekly newspaper which has for over
twenty-five years been devoted to municipal
bonds. Bankers, bond dealers, investors and
public officials consider it an authority in its
field. Municipalities consider it the logical
medium in which to announce bond offering's.
Write for free specimen copies
THE BOND BUYER
67 Pearl Street New York, N.Y.
THE MONETARY TIMES
Volume 66
NEW ISSUE
$2,530,000
PROVINCE OF MANITOBA
(CANADA)
TWENTY-YEAR 6% GOLD BONDS
Dalcc! June ht. 1921 Due June I si. 1941
Principal and half-yearly interest (1st June and December) payable
in gold at Toronto. Montreal or Winnipeg, at the holder's option.
Bonds niay be registered as to principal Denominations, $1,000 and $500
Subject lo Legal Opinio',— E. C. LONG, ESQ.. TORONTO
These bonds and interest thereon are a direct and primary obligation of the Province
of Manitoba and are payable from the consolidated revenue fund of the province.
STATc MENT
Assessed Value of Taxable property within the Province $680,000,000
NET FUNDED DEBT 24.679.100
Value of Provincial Assets 96.108.000
Area 251.832 square miles Populalion-613,000
PRICE: 98.29 AND INTEREST YIELDING 6.15%
It is expected that interim certificates will be ready for delivery on or about June 5th pending
the preparation of definitive bonds. Orders may be telephoned or telegraphed to any of our
offices at our expense and securities will be delivered to purchaser3 free of all delivery charges.
A. E. AMES & CO.
Inveslmenl UNION BANK BLDG TORONTO Esiablished
<;-...■•;(,•-, TRANSPORTATION BLDG. - MONTREAL .oon
oecuriiies ,^ BROADWAY NEW YORK '°°^
BELMONT HOUSE - - - VICTORIA. B.C.
HARRIS TRUST BLDG. - . . . CHICAGO
WE WILL BUY
BRITISH COLUMBIA MUNICIPALS
Alberni, Armstrong, Chilliwack, Duncan, Enderby, Fernie, Kamloops, Merritt, Nanaimo, Nelson,
New Westminster, North Vancouver, Port Alberni, Revelstoke, Rossland, Trail, Vancouver, Vernon,
Victoria, Burnaby, Coldstream, Delta, Oak Bay, Richmond, Saanich, South Vancouver, West Vancouver
ROYAL FINANCIAL CORPORATION, LIMITED
Rogers Building, Vancouver, B.C.
Branches :— <
B.C. Permanent Loan Buildini
VICTORIA, B.C.
201 Central Building
SEATTLE, WASH.
16 Eldon Street
LONDON, ENG.
The Standard Bank
of Canada
Established 1873 152 Branches
Capital (Authorized by Act of Parliament) $5,000,000.00
Capital Paid-up 3.802,001.20
Reserve Fund and Undivided Profits 5.I78.B43.94
DIRECTORS
Wellington Franxis. K.C. Hubert Langlois.
President Vice-President
F. W. Cowan. T. B. Greening. H. Langlois. James Hardy. F.C.A..
Thos. H Wood. Robert Gray.
Head Office, 15 King St. West TORONTO, Ont.
C. H. EASSO.M. General Manager
J. S. LOUDON. Assistant General Manager
S.A.VINGS BANK DEPART.MENT AT ALL BR.ANCHES
Head Office for Canada
and Newfoundland,
TORONTO
A^ Manager and Attorney,
'' F. H. RUSSELL
Railway Passengers
Assurance Company
OF LONDON, ENG.
Accident, Health, Employe)
Elevator, Teams, Plate G
Liability, Motor Car,
and Fidelity Banding.
Fi ll.lillKD EvfLRV FnIOAV
t-A
The Monetary Times
Printing Company
of Canada, Limited
^ " The Canadian Engineer'
^U
Trade Review and Insurance Chronicle
of Canada
Eitablished ISe'
Old as Confederation
J AS. J. SALMON D
President and General Manager
A. E. JENNINGS
Assistant General Manager
JOSEPH BLACK
Secretary
W. A. McKAGUE
Editor
Parliamentary Session To Close May 28
Legislation Has Been Colourless — Grand Trunk Negotiations Advanced —
Business Profits Tax Comes to an End, But Sales Tax is Extended — Some
New Financial Institutions Created — Two Bank Proposals Before Parliament
SCHEDULED to end M&y 28th, the present session of
parliament, which commenced February 14, will not
go on record as bringing any drastic changes. The in-
tention of the government, it is believed, is to postpone a
general election until after the 1922 session. Its position
has been none too strong, and this, combined with the de-
sire to interfere as little as possible with the return of busi-
ness to normal conditions, has resulted in contentious
measures being avoided. The extension of the sales ta.x,
termination of the business profits tax, and other changes
outlined by the finance minister in his budget speech, will, no
doubt, go through with little change. The Grand Trunk
acquisition bill carries the railway situation one step further.
There is other railway legislation of considerable import-
ance, and some new financial institutions have been created.
The Senate originated very little legislation this year.
A bill to amend the Post Office Act empowers the department
to establish a system providing for insurance against loss of
mailable matter, and fix an insurance fee, or a scale of insur-
ance fees, to be prepaid in respect of such mailable matter.
Letters mailed without postage are in future to be forwarded
and double the postage is to be collected, as is done now
where the postage is short of the required amount.
The Lake of the Woods Control Board .Act authorizes
the creation of a board jointly by Ontario and the Dominion,
to "secure at all times the most dependable flow and the
most advantageous and beneficial use" of the waters of the
Winnipeg River and of the English River, along the lines of
the report of the International Joint Commission of June.
1917.
Senate Bills
Private bills which originated in the Senate include the
following: —
A bill respecting the Dominion Express Co., authorizing
it to convey goods outside as well as within the Dominion of
Canada, and empowering it to increase its capital from $2,-
000,000 to $.5,000,000.
A bill declaring the works of the Maritime Coal, Rail-
way and Power Co., Ltd., which was incorporated by special
act of the Nova Scotia legislature in 1903, to be for the
general advantage of Canada.
A bill to incorporate the Commonwealth Bank of Can-
ada, with capital of $10,000,000, head office in Toronto, and
the following provisional directors: Charles Grant Anderson,
lumber merchant, Toronto; Joseph C. Lamothe, attorney,
Montreal; John Jacob Arnold, banker, Boston; William Long
Baker, banker, Toronto; William Heslop Gibson, fruit grower,
Newcastle, Ont.
A bill extending the time for the Great West Bank to
commence business, to July 1, 1922.
A suggestion of Canada's new status in international
affairs is found in the bill constituting this country's mem-
bership in the League of Nations, and authorizing the gov-
ernment to pass such orders in council as are necessary to
put the arrangement into effect. Another bill puts into effect
the trade agreement made with France in January. This
agreement extends to French goods the most favorable rates
of Canadian duty apart from those on goods from other parts
of the empire, and France on the other hand continues, with
certain exceptions, the rates on Canadian goods provided by
the conventions of 1907 and 1909. This arrangement, which
may be denounced by either party on four months' notice, is
in anticipation of a new commercial convention with France.
The Appropriation Act, 1921, grants to" the government
the sum of $69,937,20.3 for carrying on, meeting its expenses
for the fiscal year 1921-22. Other measures directly affect-
ing the public finances are acts to amend the Royal Canadian
Mounted Police Act and the Judges Act, respectively; the
former appropriates to the benefit of members of the force all
fines and forfeitures made by them, while the latter provides
for an additional judge of the Saskatchewan Court of King's
Bench. There is also a minor amendment to the Inland
Revenue Act.
Full regulations for the securing of patents and schedules
of fees are contained in a new Patent Act. Amendments are
al.so made to the Dominion Winding-up Act, providing that a
li<luidator shall prepare a statement of assets and liabilities
within 60 days after his appointment, and shall mail to the
Dominion Statistician a copy of such statement along with
copies of the petition, winding up order, and dividend sheets.
Amendments to the Bankruptcy Act provide that an interim
receiver may dispose of perishable goods, etc., and specifies
new conditions under which a bankrupt may voluntarily
assign.
By an amendment to the Senate and House of Commons
Act, ministers of the Crown are not to be or act as directors of
incorporated companies, excepting those for religious, charit-
able or educational purposes, and if he does he will cease to be
eligible as a member of the Senate or House of Commons.
After several years of discussion, a National Research
Institute is now to be established. In 1917 a Research
Council was established, and this council has now been con-
stituted a body corporate, with power to hold lands, etc.,
and capable of suing and being sued. The institute itself is
to be located in or near Ottawa, and has power to undertake
researches for the development of Canada's natural re-
sources, to detei-mine st&ndards of measurement, etc.
Although the work of the Canadian Wheat Board is to
be discontinued, its powers are continued "so far as it may be
necessary and convenient for winding up and concluding the
unsettled business of the Wheat Board, or any business re-
sulting therefrom."
New Financial Institutions
Incorporation of several financial institutions by special
act is included in the legislation of the session, the principal
being as follows: —
THE MONETARY TIMES
Volume 66
The North American Trust Co., with capital of $1,000,000,
which may be increased to $3,000,000, head office in Toronto,
and the following provisional directors: G. H. Wood, finan-
cier; J. H. Gundy, financier; E. G. MacMillan, baiTister; a'nd
G. S. O'Brien, barrister, all of Toronto.
The Excess Insurance Co., with capital of $500,000,
which may be increased to $1,000,000, divided into sh&res of
$25 each, but exchangeable for shares of $100 each, with the
following provisional directors: R. F. Massie and N. W. Ren-
wick, insurance managers; Mortimer Kelley, barrister; and
Frank Young, accountant, all of Toronto.
The Fidelity Insura^nce Co. of Canada, with capital of
$1,000,000, head office in Toronto, and the following provi-
sional directors: H. A. Clark and L. B. Campbell, barristers;
A. J. E. Kirkpatrick and S. W. Band, insurance managers;
and Frederick Lane, accountant, all of Toronto.
The Canadian Transit Co., with capital of $5,000,000,
head office in Windsor, with power to construct a bridge
across the Detroit River, and the following provisional di-
rectors: W. J. Pulling, lumberman, Windsor; W. R. Campbell,
manufacturer, Windsor, E. L. Winter, Windsor, C. S. King,
Walkerville, and C. E. Fowler, consulting engineer. New
York.
The Quebec Union Electric Telephone Co., with capital
of $1,000,000, and head office in Beauceville, Que., and the
following provisional directors: C. Jolicoeur, contractor; A.
Doyon, secretary-treasurer; A. Martel, electrician, all of
Beauceville: A. Huot, trader, and Henry Morin, clerk, both
of St. Nicholas.
There is also an amendment to the charter of the Do-
minion Life Assurance Co., repealing the section i-egarding
separate account's and distribution of profits.
Another bill is to extend the time for the payment of
debentures (series K. and L.) issued by the Montreal Harbor
Commissioners.
The act of incorporation of Gilmour and Hughson, Ltd.,
is changed to allow the directors, upon the unanimous ap-
proval of the shareholders, to make distribution of its assets
among the shareholders, provided that the rights of the
creditors are not impaired.
Railway Legislation
Among the railway legislation, mention should first of
all be made of the "Act respecting the Canadian Pacific Rail-
way," authorizing it, upon vote of two-thirds of the share-
holders, to issue bonds, debentures or other securities col-
lateral to any consolidated debenture stock issue, and, upon
redemption of same, to sell such debenture stock.
A. J. Gillis, of Dawson, R. B. Young, W. A. H. McBrien
and N. J. Robinson, of Toronto, are the incorporators of the
"Ma.yo Valley Railway, Ltd.," with capital of $750,000 and
head office in Dawson, with power to build a railway in the
Mayo River Valley, and operate vessels, wharves, etc., in
conjunction therewith.
The Manitoba and North Western Railway is authorized
to build lines from Tuffnell to Prince Albert and from
Theodore to Lanigan, and to issue securities not exceeding
$40,000 per mile of new road. An extension of two years is
granted to the Essex Terminal Railway Co., for the com-
mencement of its road from Ojiway to Pelton. The Quebec
Central Railway Co., now leased to the Canadian Pacific, is
allowed five years more for the completion of its road from
Scotts to the St. Lawrence River at Quebec, the securities
issued for this purpose not to exceed $40,000 per mile.
Similar extensions are granted to the Ottawa, Northern and
Western Railway Co. for its line from Waltham to Chalk
River, to the Western Dominion Railway Co. for a line from
the international boundary to Calgary, with a branch from
Pincher Creek to the British Columbia boundai-y, and to the
Montreal, Ottawa and Georgian Bay Canal Co. for the
construction and completion of its canals. The St. John and
Quebec Railway Co. is allowed until 192.3 for the completion
of its line from Centreville to Andover.
NEW BOND BRANCH IN VICTORIA
Announcement is made of the opening of offices in Vic-
toria, B.C., by the firm of Grant, Whyte and Co., Ltd., stock
and bond brokers, of Vancouver, B.C. The firm operate
direct wires to all principal exchanges in the east, and the
same facilities will be extended to the Victoria office. The
continued growth of their business in Vancouver has necessi-
tated enlarging their offices there and they have now decided
to extend their operations to this city. They are one of the
largest of the bond houses in Vancouver, and specialize in
high-class securities. The Victoria offices will be located on
the ground floor of the Winch Building, on Fort St., and will
take in part of the offices new occupied by R. V. Winch and
Co., together with some of the adjoining offices.
TOTAL DISABILITY BENEFIT TO WOMEN
Last month the Sun Life of Canada, in making certain
changes as regards its treatment of women applicants, in-
troduced an innovation in allowing the total disability benefit
to be accoi'ded to female lives at same rates as to men. The
company will now issue, in amounts not exceeding $5,000,
policies containing the total disability benefit to unmarried,
self-supporting women whose applications show them to be
first-class in every respect (excepting in all cases term
plans and whole life non-participating policies, which are
not issued to women). The premiums for this disability
benefit ".'re the same as are charged to male lives.
The general regulations governing the issue of life in-
surance policies to women by the company are, briefly, as
follows: —
1. Single, self-supporting women.- — ^With the exception
of the term plans and the whole life non-participating plan,
any plan of policy will be issued without extra premium.
Applicant must be self-supporting by means of wages re-
ceived at regulR'r employment or by income from investments
held in her own name.
2. Single women, not self-supporting. — In general the
company will restrict these applicants to the 25-year en-
dowment plan with profits, or to policies with higher pre-
mium. No extra premium required.
3. Married women. — Will only be accepted without ex-
tra premium on the 10, 15 and 20-year endowment plans with
profits. Policies may be issued with an extra premium of $5
per $1,000 on participating plans with premiums less than
the corresponding 20 pay life or with an extra premium of
$2.50 per $1,000 where premiums are equal to or greater than
20 pay life but not less than the 20 year endowment. These
extra premiums will cease at age 50, and may be replaced
in either case by a lien of $20 per $1,000 for each year by
which age at entry falls short of 50 except that in the case
of endowment policies maturing at or before age 55 the lien
will be arranged to run ofl" five years before maturity of
policy.
Full information must be given as to amount of insur-
ance upon the life of applicant's husband. If he carries
none, the reason should be given. No policy will be issued
upon a woman's life in favor of her husband; the policy
must be payable to her children or to her administrators,
executors or assigns.
4. Total disability benefit for women.- — Company will
issue, in amounts not exceeding $5,000, policies containing
the total disability benefit to unmarried, self-supporting
women as defined in section 1, whose application shows them
to be first class in every respect. Premiums for this benefit
will be the same as those required for male lives. The ob-
ject of the assurance will be most carefully considered in
each case and this privilege will not be granted in any case
where the risk is considered doubtful on any ground.
The foregoing regulations do not apply to French-Cana-
dian women, for whom separate regulations have been issued.
May 27, 1921
THE MONETARY TIMES
The International Trade Situation in Canada'
Small Volume of Exports to United States Has Been a Feature
Since Confederation — Overseas Market Has Been Best and Govern-
ment Fleet is Designed to Enlarge It — Situation as Regards Imports
By JOHN A. COOPER,
Canadian Government Representative in New York.
CANADA'S international trade history is that of a long
struggle against what seemed to be the logic of the
situation. The Canadian pioneer struggled bravely to trans-
form a forest-clad land into a garden. It was a supreme
struggle with nature and nature's intentions. So the Cana-
dian trader who desired to do business with foreign countries
had to overlook geographical considerations and take his
wares long distances overseas. If he could have had unim-
peded access to the United States market and had that mar-
ket been able to absorb his surpluses, his task would have
been easy. But politics, tariffs and similarity of products
decreed that it must be otherwise.
In the first twenty years of Confederation, 1868 to 1887,
Canada exported goods to the value of $1,460,000,000, of which
$66.5,000,000 went to the United States and the remainder to
the rest of the world. Of her total sales, only 45 per cent,
went to the large neighboring market. The remainder, or
55 per cent., had to be sent overseas. In those days the dis-
tances to foreign markets were farther than to-day, because
the ships that carried the goods were smaller and slower.
In the next twenty years, 1888 to 1907, the same tendency
is evident. There had been talk of "reciprocity" with the
United States, but the McKinley tariff of 1890 dealt that idea
a staggering blow. In 1897 the Canadian people definitely
made up their mind that their political and economic safety
lay in developing the markets of the British Empire rather
than the niurkets of the United States. In the twenty-year
period, 1888 to 1907, Canada's exports were divided as fol-
lows : —
United Kingdom $1,551,809,000
United States 1,029,600,000
Other countries 268,304,000
Total $2,849,713,000
In this period the sales to the United States fell to 38
per cent, and those to the rest of the world grew to 62 per
cent. Canada was definitely launched on a non-continental
policy. The world, not the Noi-th American continent, was
to be her chief market.
During the following eleven years, 1908 to 1918, a great
war occurred and the shipments of munitions to Great Bri-
tain made the tendency even more marked. The unusual cir-
cumstances make the figures interesting, but prevent the
drawing of any definite conclusions. They are: —
1908-18 (inclusive)
United Kingdom $3,283,023,000
United States 1,861,883,000
Other countries , 818,601,000
Total $5,963,507,000
During this period, only 31 per cent, of Canadian exports
went to the United States.
Effect on Shipping
One great effect of this policy of across-the-sea trading
is found in the growtji of Canadian shipping and in a com-
paratively wide knowledge of maritime problems. In 1902,
about twenty thousand vessels entered and cleared at Cana-
dian ports. The ownership of these was divided as follows: —
♦From the Annals of the American Academy of Political
and Social Science, March, 1921.
Ships Tons
British .'_ 4,363 6,865,924
Canadian 11,413 1,937,227
Foreign 14,530 14,731,488
This proportion has been well maintained, as the returns of
sea-going vessels entering and clearing Canadian ports in
1919-1919 given in the following table will show: —
Ships Tons
British 6,099 14,054,166
Canadian 11,115 3,758,528
Foreign 15,132 7,448,699
Since these figures were compiled the government has under-
taken to build and maintain a Canadian merchant marine
which will increase the percentage which her own tonnage
bears to the total tonnage entering her ports. The policy
adopted is quite different from the shipping policy of the
United States, though the aim is akin. The Canadian Gov-
ernment Mercantile Marine, an incorporated company in which
the government is the sole stockholder, has been projected
with a definite plan for the creation of a fleet of seventy ves-
sels. About forty of these are already in commission. Kegu-
lar services have been established with England, the West
Indies, Brazil and Australasia. At present all traffic is con-
fined to freight, although some vessels on the West Indian
route are being reconditioned to admit of the carrying of a
limited number of passengers. The general policy is to use
these boats as au.xiliary to existing privately-owned lines and
to develop such new routes as seem desirable in the interests
of Canada's export trade.
Canadian Imports
Naturally Canada's purchases abroad have been affected
by the across-the-sea trading policy which necesstiy forced
her to adopt. When vessels go abroad they must have return
cargoes. Canada attempted to secure these return cargoes
by giving British manufacturers a preference in respect of
customs duties. This was done in 1897. Ten years later a
treaty was made with France, whereby French goods were
given a tariff which was "intermediate" between the prefer-
ential tariff on British goods and the general tariff which
applied to other countries. Under this French tariff certain
favored nations were also entitled to these "intermediate"
rates. Three years later, 1910, a similar arrangement was
made whereby the intermediate tariff was extended in part
to Belgium, the Netherlands and Italy. In 1913 a preferential
anangement was made with the British West Indies. This
was further extended in 1920.
Between 1888 and 1907 Canada imported goods to the
value of .$1,744,000,000 from the United States out of a total
of $3,160,000,000, or 55 per cent. In the eleven years, 1908
to 1919, Canada's purchases from the United States were
valued at $4,898,000,000 out of a total of $6,959,000,000, or
70 per cent.
Of Canada's total imports in 1914, the United States sup-
plied goods to the value of $395,565,000, as compared with a
total from all countries of $618,457,000, or 64 per cent. Simi-
larly, in 1920 (year ending March 31), the United States sold
Canada $801,605,000 out of the total Canadian imports of
$1,064,516,000, or 80 per cent. This figure will probably never
be exceeded, as Europe is rapidly regaining that portion of
Canadian trade which was lost during the Great War.
(Continued on page 28b)
THE .MONETARY TIMES
Volume 66
MANITOBA HAS NEW CORPORATIONS TAX
EDMONTON'S FINANCIAL POSITION STRENGTHENED
Based on Net Profits — Income Tax Bill Held Over, However
— Municipal Legislation was Voluminous — Two New
Insurance Companies Formed
LEGISLATION for increased aid to hospitals, for agricul-
ture and g-ood roads, and a resolution urging that the
public lands in the west be transferred to the provincial
governments were the main features of the Manitoba legis-
lative session which opened February 15 and closed May 7.
One of the outstanding acts of the legislature was its
decision to abolish the office of public utility commissioner,
and transfer the duties to the provincial secretary's depart-
ment. Feeling in the matter
was brought to a head by the
judgment of the commis-
sioner, P. A. Macdonald,
raising street car fares,
which was condemned as an
abuse of his power. The gov-
ernment was given a year in
which to prepare legislation
giving effect to the resolu-
tion, and covering the gen-
eral situation created by abo-
lition of the office.
Another measure of first-
class importance, the pro-
vincial income tax bill, was
withdrawn at the request of
the city after its effective-
ness as a revenue-raising
scheme had been whittled
away in committee. So many
exemptions were approved by
the law amendments com-
mittee that Attorney-General
T. H. .Johnson, the chairman,
remarked: "This is more an
exemption bill than an in-
come tax bill." The tax on
automobiles was increased,
and pool and billiard rooms
were brought under the
amusements tax. The tax on
unoccupied wild land was
raised, and a tax of 2 per
cent, on the net profit of
corporations was imposed.
Several financial institu-
tions were also incorporated
by special act of the legis-
lature. The principal are the
following: —
Security Insurance Co.
of Canada, with capital of $500,000, in shares of $50 each,
head office in Winnipeg, and the following provisional direc-
tors: Wililam Hilton, manager; G. P. Macleod and J. S. Mac-
pherson, students; and E. W. Marshall, stenographer.
Northwestern General Insurance, mth capital of $1,000,-
000, in shares of $100 each, head office in Winnipeg, and the
following provisional directors: J. F. C. Menlove, president;
H. R. S. McCabe, managing director; F. O. Maber, secretary;
P. M. Brand, manager; and J. O. Oldham, agency director.
Some amendments are also made in tha charter of the
Continental Fire Insurance Co. An act was also passed with
reference to powers in respect of unpaid calls, and power to
forfeit shares and dividends of the Equitable Trust Co. The
Bankers Trust Co., which has a Manitoba charter, was au-
thorized to do business in Manitoba.
Legislation affecting individual municipalities was con-
siderable. A by-law of Ste. Rose municipality, authorizing
the issue of $61,900 of debentures, was legalized. Four by-
laws of West Kildonan, for the issues of debentures for
$3,196, $10,638, $6,414 and $26,248, were declared valid.
To our Advertisers and Subscribers
As has been pointed out in a series of full-page ad-
vertisements in The Monetary Times during
the past few weeks, the last of which you will find on
page ."jl of this issue, the commercial printers and
periodical publishers of Toronto are confronted with
the possibility of a printers' strike on Wednesday
next, June 1st.
We feel most strongly that in the face of falling
markets in nearly all other industries, no logical
justification exists for such unreasonable demands
as the employees are making at this time.
Everything possible has been done by the em-
ployers to avert such an occurrence, but in the event
of the men walking out, we trust the break will not
be of long duration.
In justice to ourselves and you whom we serve
we feel that we should resist these impossible de-
mands.
Should the strike be brought about it will be
impossible to get out this publication. Under the
circumstances we crave your indulgence and co-
operation until such time as the trouble has passed.
As we go to press with this issue, we are still
hopeful that the great body of sane opinion among
the local men will prevail, and that the union officials
will be induced to change their present attitude so
that Toronto printers may continue at work and thus
obviate the necessity of a strike with its inevitable
result of loss to the printers and publishers, and in-
convenience and loss to the public.
Publishers,
THE MONETARY TIMES OF CANADA
Tax Rate Five Mills Lower than Last Year — Crop Outlook
is Good
Staff Special, Edmonton, May 25, 1921.
THE crop outlook in Alberta, both northern and southern,
is extremely bright at the present time. Splendid rains
have fallen in the south country, and, as far as the north is
concerned, they usually have plenty of moisture; wheat is up
several inches and the weather is ideal now for rapid growth.
Business in Edmonton is brisk, and the many enquiries re-
ceived locally regarding the oil development show a very
widespread interest. Many interests have men right on
the ground keeping strict
watch on developments, but
with the present government
restrictions it is pretty gen-
ei'ally felt that it will be a
year, or possibly two years,
before much additional de-
velopment will take place
outside of what has already
been st&rted.
The city of Edmonton
itself seems to have taken
on a new lease of life. This
year's administration, with
Mayor Duggan and Commis-
sioner C. J. Yorath at the
helm, have the whole-hearted
suppoi't of the citizens, and
the city is making good pro-
gress. The total tax rate for
the current year is 39.80
mills, compared to 45 mills
for 1920— a reduction of 5.20
mills. The total tax levy is
approximately .$400,000 less
than last year. It is believed
that Edmonton is the only
city in western Canada which
has been able to reduce its
tax rate this year. The as-
sessment of the city remains
practically the same as last
year, namely, $79,500 OCO.
The tax collections for
the first discount peiicd of
this year, ending May 17,
total $1,567,000, which is ap-
proximately $1,000 better
than last year, aJthough the
tax rate this year is so much
less. This result is very en-
couraging seeing that tax
collections generally are lower this year than last year.
The four public utilities, namely, electric light and power,
street railway, telephone and waterworks show a net profit
for the first four months of this year of $95,468, compared
with $25,298 for the same period last year. The electric light
department shows a surplus of $64,603, the telephone depart-
ment $21,394, the power-house and pumping station $21,358,
and the waterworks $7,092. The street railway shows a
deficit for the first four months of $8,980, compared with
$21,811 for the rame period last year. The street railway
during the month of .April showed a profit of $3,406. The
profit and loss on utilities is after deducting all fixed charges,
including interest, sinking fund and depreciation.
The city at the present time owes its banks on current
account only $45,894. There are no further short-term notes
falling due during the present year, and only $207,427 during
1923, but, as an amount of $708,978 has been paid into the
sinking fund account up to December 31, 1920, to take
care of short-terms mrturity notes, this payment is
fully protected.
May 27, 1921
THE MONETARY TI:MES
$iontiav^ Dimes
Trade Review and Insurance Chronicle
of Canada
Address: Corner Church and Court Streets, Toronto. Ontario, Canada.
Telephone: Main 7404, Branch Exchange connecting all departments.
Cable Address: "Montimes, Toronto."
Winnipeg Office: 1206 McArthar Building. Telephone Main S409.
G. W. Goodatl, Western Manager.
ne Year
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The Monetary Times was established in 1867, the year of Confedera-
tion. It absorbed in 1869 The Intercolonial Journal of Commerce, of
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Journal of Commerce.
The Monetary Times does not necessarily endorse the statements and
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cluding from its columns fraudulent and objectionable advertisements. All
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PRINCIPAL CONTENTS
EDIT0RI.4L : PAGE
Control of Life Insurance Agents 9
Great Britain's Financial Outlook 9
Some Notable Business Losses 10
The 1921 Session of Parliament 10
Special Articles:
Parliamentary Session Closes To-Morro\v 5
International Trade Situation in Canada 7
Manitoba Has New Corporation Tax 8
Edmonton's Financial Position Strengthened 8
Dominion Control of Water Powers 14
American Interest in Canada 18
Why Bank Credits Must be Short-Term 22
Wholesale Prices in April 24
.Adjustment of Fire Insur&nce Losses 24
British Columbia Fire Underwriters' Association . . 280
Preference Under Dominion Winding-Up Act 34
The Week in Parliament 49
Weekly Depart.ments:
News of Industrial Development in Canada 36
New Incorporations 38
Insurance Licenses and Agency Notes 29D & 38
News of MunicipaJ Finance 40
Government and Municipal Bond Market 42
Corporation Securities Market 4fi
The Stock Markets 48
Corporation Finance 50
Recent Fires 52
CONTROL OF LIFE INSUR.VNCE AGENTS
GKE.VT BRITAIN'S FINANCIAL OUTLOOK
THAT life insurance men in the Dominion are opposed to
dual control of agency forces is illustrated by the stand
taken by both the Life Officers' -Association and the Life
Underwriters' Association, on a bill which it is understood
the Dominion superintendent is to have introduced at the
present session of parliament. Copies of this bill are not yet
available, but the gcvernment's intention is believed to be
to have all agency appointments subject to the superin-
tendent's approval.
This is of course different from the license systems
operated in most of the provinces, where the agent deals
directly with the department. Nevertheless the possibility
of conflict is apparent, for a provincial license might be
granted by a province to an agent who was not approved
by the Dominion, or vice versa. The provincial governments
are also opposed to any such inroad upon their right to
control the business of life insurance, quite apart from the
authority under which a company is doing business.
It is to be hoped, therefore, that no leqrislation of the
kind will be passed hurriedly, and later found to be unwork-
able. There is nothing to be gained by publication of con-
trol, and any pi-ovince should be capable of deciding who is
and who is not fit to write life insurance; having then
secured his license, the agent is in a position to woi'k for any
company.
The provinces have during the past few years made
special efforts, and are planning to do more, tow&rds im-
proving insurance field work. Much of this effort would be
wasted were the Dominion to take over the work. It has,
moreover, been regarded as within the field of provincial
jurisdiction, under the control of "property and civil rights,"
and the power to regulate contracts generally. La«t year
r. Dominion bill was drafted to establish a system bf Do-
minion licenses for agents. This was withdrawn when its
objections were realized, and the opinion of insurance men
may be equally effective on the present proposal.
LIKE that of Sir Henry Drayton, the budget speech of the
British Chancellor of the Exchequer this year contained
no surprises. The only changes proposed were that the sur-
tax on imported cigars should be dropped and that a fixed
duty of 15s. a gallon should be substituted for the existing
charges on sparkling wines. No additional taxes are to be
imposed. For the first time the Chancellor followed the con-
tinental custom of presenting the budget in two sections,
viz., "Ordinary Expenditure and Revenue" and "Special and
non-recurring Expenditure and Revenue." The figures under
each heading are appended: —
Ordinary Budget
Estimated ordinary revenue £ 1,058,150,000
Estimated ordinary expenditure . . . 974,023,000*
Surplus £ 84,127,000
Special Budget
Sale of war assets £ 158,500,000
Liquidation of war commitments . . 65,705,000
Surplus £ 92,795,000
Combined Budget
Revenue £ 1,216,650,000
Expenditure 1,039,728,000
Surplus f 176,922,000
''Including £345,000,000 for national debt services
and £111,000,000 for war pensions.
Barclay's Bank Reinew for May points out that this
position is scai'cely as satisfactory as it seems, when ac-
count is taken of Mr. Chamberlain's explanation that, owing
to the coal stoppage, there are large claims on the oi'dinary
budget surplus; also, that against the surplus on the
"Special" budget must be set liabilities at present unascer-
10
THE MONETARY TIMES
tained, which arise out of the liquidation of war agreements,
in particular for the control of railways, arrears of main-
tenance and deterioration. Making allowance for these items,
he estimates that the amount available for debt reduction
will be £103,500,000. Here it is interesting to notice that in
the past year £259,500,000 was applied to debt reduction.
Of this sum, £117,154,000 was applied to extinguishing
foreign debt, with the result that, apart from a loan of
£8,000,000 made by the Straits Settlements and Mauritius,
practically the only British debt now payable outside the
United States and Canada is £826,000 in Sweden, and this,
the Chancellor states, will soon be arranged for.
THE 1921 SESSION OF PARLIAMENT
SO.ME NOTABLE BUSINESS LOSSES
THE past few weeks have brought some unusually large
failures. Andrew Motherwell Co., Ltd., millers and
manufacturers of food products a.nd feeds, Dundas, Ont.,
have assigned to Osier Wade, owing to heavy losses sus-
tained by the drop in prices. The firm's assets are $300,000,
and their liabilities $220,000. It is likely that a liquidator
will be appointed. Gravanite Products, Ltd., King St. West,
Toronto, have aJso assigned owing to business difficulties
due to lack of capital. Assets are placed at $70,000, and
liabilities at $50,000. A Toronto business, that of A. T.
Widdowson, boots and shoes, 176 Main St., will be wound
up, as the proprietor has left the country. The nominal
assets are $14,000.
On Mr.'y 3 announcement was made of the assignment
of the Nobility Chocolates Co., Ltd., St. Thomas, Ont., for
the benefit of 'its creditors. The sudden drop in the prices
of several lines of raw material in which the company was
heavily stocked is given as the cause of the failure. At a
meeting of the creditors about three weeks ago the surplus
over the liabilities was given as a.bout $150,000, including
the large four-story plant and equipment. The company
was reorganized by George Fisk, of Toronto, in October
last, following the purchase of the Nobility Chocolates, Ltd.
The directors state that there is little likelihood of another
reorganization taking plfoce, but it is stated that another
local firm is already negotiating for the purchase of the
building.
By consent of all parties concerned, a receiver has been
appointed for the Noble Foundation, Ltd., the largest farming
corporation in Western Canada — the largest, possibly, in the
w^orld. By a court order issued by Mr. Justice Simmons, in
(Calgary, H. E. McDonald, of the inspectorate staff of the
Merchants Bank, Calgary, is named as receiver. Several
large creditors are interested in the afFa.irs of the Founda-
tion, among them being the Merchants Bank of Canada, the
Bankers' Trust, an American institution. The amounts for
which these parties claim are not disclosed. Another large
creditor is Henry Carstons, Seattle, a private trustee for the
debenture holders of the first issue of debentures sold in
Seattle by the Noble Foundation. The latter's claim is said
to be in the neighborhood of $500,000. The total liabilities
of the foundation are not disclosed, nor are the assets of
the organization.
During past years, when the crops in the southern part
of the province have been light, and total failures in some
places, the Noble Foundation has always had some sort of
crop, but it w-as not until 1920 that the company were suc-
cessful in harvesting a really big yield from their extensive
property. According to figures contained in a report made
by S. C. Reat, U.S. consul in Calgary, the harvest taken in
by the Noble Foundation in 1920 included 197,600 bushels
of wheat, 74,245 bushels of rye, and 1,158 bushels of flax.
In 1915 a world's record for oats was established, an average
of 12(:i bushels an acre being taken from 1,075 acres. In
1916 another recoT'd was made in wheat growing, when an
average of 54.23 bushels of wheat per acre was harvested on
1,000 acres.
PARLIAMENT is this week completing a session which
may be regarded in conservative circles as bringing
little retraction of war-time inroads upon capital industry,
and in more "progressive" quarters as containing little to
further the material progi'ess of the country. There is, how-
ever, a time for radical legislation and a time for a stand-
pat policy; certainly the latter has been the wisest, for
what progress has been made towards a more solid economic
condition has been made by industry itself apart from gov-
ernment measures. It is moreover advisable that public ex-
penditures should be reduced rather than increased, and the
avoidance of new undertakings is one way in which this
may be done. The certainty that the national rail-
way system cannot pay its expenses for some time
to come is a great disappointment in this respect, for
it adds to the annual expenditures of the government.
Thtre has, of course, been the usual amount of discus-
sion on national issues, much of it taking place before the
tariff commission and the parliamentary committees on rail-
ways and soldiers' civil re-establishment. This discussion
has shown that there is no demand for radical changes. Even
the fres trade movement soon exhausted itself before the
bar of public opinion, and the tariff is now on,a more solid
foundation, though there is a widespread feeling that any
change should be in a downward direction. On the railway
situation a great deal of light was thrown but no solution
satisfactory to all parties was offered; it is evident now that
the expensive process of acquisition of the Grand Trunk,
amalgamation with the Canadian National, and the operation
for a short time at least of the whole system must be pro-
ceeded with. Regarding the war veterans, it is felt that
Canada has done moi-e than most other countries, and the
problem of employment and relief for returned soldiers has
been absorbed in the larger one affecting the citizens as a
whole.
That there is an undercurrent of faith in further
economic progi'ess is shown by the number of private bills
relating to new banks, insurance and other companies. One
of the propc sed banks withdrew its application, however,
while the other has not yet passed through the promotion
stage. Several insurance companies and one trust company
were incorporated, and some new railway construction should
result fi'om extensions of time granted to railway companies.
The industrial progress of the country during the next few
years will of necessity be slow, but the government can best
assist it by little interference as possible and as low taxa-
tion as the national finances warrant.
APPLICATION FOR BANK CREDIT
A western manager of the Canadian Bank of Commerce
relates the following account of an application for what
might be called unlimited credit: —
"When I had charge of a branch in the city of Toronto,
in a district where dealers in furs, old clothes, etc., pre-
dominate, I was approached by Abe Levensky, who addressed
me as follows: 'Mester McKinney, can you make me per-
haps a loan? I vant to start some beesiness,' and in accord-
ance with the usual custom I asked for a cop.v of a statement
of his affairs. Levensky said, 'Vot you mean, statement?' I
explained that the bank must have his financial statement
so that we might judge as to his claims for credit. Levensky
grasped the idea at once. 'Oh yes, I know, I vill get mine
friend Rubenstein to prepare it, he understands figures.'
In the course of a day he returned to the bank with the
statement of his affairs neatly prepared. I looked it over
and said 'Why this looks good,' and Levensky with a most
satisfied grin said, 'Vy yes, it's fine, it's fine.' When we had
talked the matter over, due consideration having been given,
I asked my prospective customer how much money he would
need, the reply was without hesitation. With the usual move-
ment of the hands he said, 'Vel, how much have you got?' "
May 27, 1921
THE MONETARY TIMES
Bank of Hamilton
HEAD OFFICE
HAMILTON
Established 1872
Capital Authorized
Capital Paid Up (February 28th, 1921)
Reserve Fund (February 28th, 1921)
$5,000,000.00
4,998,220.00
4,849,110.00
Directors
SIR JOHN HENDRIE, K.C.M.G., C.V.O., President
CYRUS A. BIRGE, Vice-President
HOWARD S. AMBROSE C. C. DALTON
ROBT. HOBSON W. E. PHIN
I PITBLADO, K.C. W. P. RILEY
J. TURN BULL W. A. WOOD
ALAN V. YOUNG
Branches
At Montreal, and throughout the Provinces of
Ontario, Manitoba, Saskatchewan, Alberta and
British Columbia.
Savings Department at all Offices.
Deposits of $1 and upwards received.
Advances made for Manufacturing and Farming
purposes.
Collections eflfected in all parts of Canada promptly
and cheaply.
Correspondence solicited
J. P. BELL - - General ALinager
Investment Service
The Bond Department of this Bank
is in a position to obtain accurate
and invaluable information regarding
any Canadian or Foreign Securities
in which you may contemplate in-
vesting.
At all times we deal in Government
and Municipal Bonds.
IMPEKIAL BANK
OF CANADA
216 BRANCHES IN CANADA
Agents in Great Britain : — England — Lloyds
Bank, Limited, London, and Branches. Scot-
land — The Commercial Bank of Scotland,
Limited, Edinburgh and Branches. Ireland —
Bank of Ireland, Dublin, and Branches.
Agents in France: — Credit Lyonnais, Lloyds and
National Provincial Foreign Bank, Limited.
The Bond
Between
Bank and
Farm
CTIMULATION of agricultural pursuits
is essential to the welfare of the
Dominion. This Bank plays its part as
a national institution by lending every
effort and its vast resources to support
agricultural activity to the utmost.
Those interested in any enter-
prise of the soil are invited to
confer with our branch managers.
UNION BANK
OF CANADA
THE
Bank of Nova Scotia
Established 1832
Capital
Reserve
Total Assets
$9,700,000
$18,000,000
$230,000,000
GENERAL OFFICE : TORONTO, ONT.
H. A. Richardson, General Manager
Branches at all the principal centres
throughout Canada and in Newfound-
land, Cuba, Porto Rico, Dominican
Republic, Jamaica, and in the United
States at
BOSTON CHICAGO NEW YORK
London, Eng., Branch:
55. OLD BROAD STREET. E.C.2
THE JIONETARY TIMES
Volume 66
PERSONAL NOTES
Sidney. H. Pipe, F.A.S., A. I. A., actuary of the In-
dependent Order of Foresters, was elected president of the
Canadian Fraternal Association at the annual meeting held
at Montreal last week.
George D. Perry, who has been general manager of the
Great North Western Telegraph Company, for some time,
has been appointed vice-president and general manager of
Canadian National Telegraphs, with headquarters at Tor-
onto.
W. E. Binning, town treasurer of Listowel, Ont., and
secretary-treasurer of the Board of Education for that
municipality, has tendered his resignation on account of ill-
health. Mr. Binning has been identified with the public of-
fices of Listowel for nearly forty years, and for twenty
years he has served as treasurer.
Stewart Macnaughten, F.S.A., F.I. A., A.C.A., manager
and actuary of the Standard Life Assurance Company, Edin-
burgh, is visiting Canada for the first time and will visit
important sections of the Dominion accompanied by W. H.
Clark-Kennedy, manager for Canada, before leaving for
home in the course of a few weeks.
W. B. Roberts has been appointed chief engineer of
the General Accident Assurance Company of Canada, Tor-
onto, in place of J. 0. B. Latour, who has resigned. Mr.
Roberts has had a wide and varied experience as an engineer.
After a period of service as a marine engineer, he obtained
an extra chief engineer's British Board of Trade certificate,
thereafter becoming associated with the Manchester Steam
Users' Association, remaining with this association for five
years, 1% years as surveyor and SV2 years as a resident and
consultant engineer. Mr. Roberts then went into business
in Liverpool as a consulting engineer. He was, prior to his
service overseas, chief inspector for the General Accident
in the westei-n provinces, rejoining the company's service in
1919. Mr. Roberts had a distinguished career as an engineer
in the Roval Navy during the war.
Royal Bank of Canada
\iw Premises on Sprhrg Gaiden Read, Halifax, N.S.
BANK BRANCH NOTES
The Royal Bank of Canada has leased the ground floor
of the La Sauvegard Building, opposite the Court House,
Montreal, and will open a new branch to be known as the
St. Vincent and Notre Dame branch.
The Bank of Montreal has purch£«ed the north-west
corner of Guy St. and Sherbrooke St., Montreal, where a
new branch will be erected.
At a cost of $120,000 the Union Bank is to erect a two-
story brick building for bank purposes at 500 Main St.,
Winnipeg.
The Bank of Nova Scotia is erecting a new building on
GrE'fton St., Charlottetown.
T. G. McMaster, formerly manager of the Hamilton
branch of the Bank of Nova Scotia, has been appointed
superintendent of branches.
Leon Shearer, formerly accountant in the Union Bank at
Lacombe, Alta., ha^s been appointed manager of the branch
at Waterhole, Alta.
The Sterling Bank announces the following: C. F. Per-
kin, formerly accountant at Cornwall, has been appointed
acting manager at Lansing; L. G. Fox, who wa-s acting man-
ager at Lansing, and R. H. Sayers, manager at Wellandport,
both departed for the west together. Mr. Fox has since
arrived at Birnie, Manitoba branch, where he has been ap-
pointed acting manager and R. H. Sayers has taken
over the managership of Eden, Manitoba, branch; R. M.
Hammond, who was manager at Eden, Manitoba, has been
transferred to Glenella in the sa^me capacity; A. G. Duncan,
who was temporarily acting as manager at Birnie, Manitoba,
has been transferred to Winnipeg branch; the branch at
Madawskf,., Ont., was closed on Mai-ch 31, J. H. Robinson,
acting manager there, has been transferred to Whitney, Ont.,
in the same capacity; S. C. McCracken, who was temporarily
in charge at Whitney, has now resumed his position at
Zephyr as citing manager; W. S. Regan, manager at Glenella,
Man., has been transferred to Winnipeg as acting accountant;
E. H. Brown, formerly at Wadena, Sask., has been transferred
as accountant to St. Catharines, Ont.; N. C. Bucknam, former-
ly accountant at Sudbury, Ont., has been appointed acting
manager of Wellandport, Ont., branch; G. B. Clarke, acting
manr.ger of Shedden, Ont., has received the appointment of
manager of that branch; S. G. Modeland, for some
tmie attached to the head oflSce staff, ha* been ap-
pointed acting manager of Lefroy, Ont.; H. W. Mor-
den, acting manager of Richmond Hill, Ont., has been
made manager there.
The Royal Bank announces the following: J.
Lippe, who for the past eight years has been man-
ager of the Joliette branch, has retired; F. W. Bain,
manager of Toronto, Yonge and Richmond Streets
branch, has left the bank, and is to become manager
of the Atares Wharf and Warehouse Co., Havanna,
Cuba; L. M. McCarthy, formerly attached to the
supervisor's department, Toronto, has opened his new
offices under the firm name of Mara, McCarthy and
Co., stockbrokers, in the Times Building, Bay St.; H.
R. Extence, of the supervisor's department, Van-
couver, left for Cuba on May 4; the branch at Bridge-
water, N.S., has just moved into new premises.
La Societe Internationale d'Administration is the
name of a new trust company in process of organi-
zation in Montreal. It was originally started by A.
A. Charbonneau. who has since dropped out. The
directorate will include G. L. Patenaude as president,
E. L. Lafieur and T. Meunier. P. L. S. Browne will
be manager. A Quebec charter is being secured, with
authorized capital of $299,000, of which $100,000 is
paid up, and some stock may be offered to the public
I'jter. Premises have been secured at 86 St. James
Street.
May 27, 1921
THE MONETARY TIMES
Bank of New Zealand
ESTABLISHED IN 1861
Bankers to the Ne«v Zealand Government
CAPITAL
Paid-Up Capital ($13,528,811) and Rncnc Faad
($12,166,250) $25,695,061
Undivided Profit. 713.039
Aggregate Aiieti at 31il March, 1920 257,500,944
Head Office:
WELLINGTON
NEW ZEALAND
H. BUCKLETON
General Manager
THE BANK OF NEW ZEALAND has Branches at
Auckland, Wellington. Chrisfchurch. Dunedin. and 20:< other
places in New Zealand ; also at Melbourne and Sydney
(Australia). Suva and Lcvuka (E-iji). Apia (Samoa), and
London.
The Bank has facilities for transacting every description
of Banking Business. It invites the establishment of Wool
and other Produce Credits, either in sterling or dollui s. wii h
any of its Austral.isian Branches.
LONDON OFFICE: 1 Qoeeo Victoria Street, MaosioD House, E.C. 4
CHIEF CANADIAN AGENTS :
Canadian Bank of Commerce Bank oi Montreal
THE ROYAL BANK OF CANADA
Statement to the
Dominion Government (Condensed)
Showing Condition oi the Bank on
mSnt°real April 30, 1921
LIABILITIES
Capital Paid Up
$20,340,860.00
Reserve Fund
20.237.435.00
Undivided Profits
546.928.20
Notes in Circulation
35.488.738.74
Deposits
414.038.037.53
Due to Other Banks
15.010.210.40
Bills Payable (Acceptances by London Branch)
8.128.960.91
Acceptances under Letters of Credit
16.045.249.79
$529,836,420.57
ASSETS
$119,205,942.44
Deposit in the Central Gold Reserves
17.500.000.00
Government and Municipal Securities
31.668.465.69
Railway and Other Bonds. Debentures and Stocks
14.576.445.08
Call Loans in Canada
15.f07.094.56
Call Loans elsewhere than in Canada
27.520.632.98
$226.27S.5'.0.75
Loans and Discounts
275.912.738.97
Liabilities of Customers under Letters of Credit as
per Contra
16.045.249.79
Bank Premises
9.706.183.56
Real Estate other than Bank Premises
991.970.10
Mortgages on Real Estate sold by the Bank
41.697.40
Deposit with Dominion Government for Security o
Note Circulation
C«0.000.00
$529,836,420.57
730 BRANCHES IN CANADA, NEWFOUNDLAND. WEST INDIES.
CENTRAL and SOUTH AMERICA, also LONDON. NEW YORK
and BARCELONA
Paris Auxiliary — THE ROYAL BANK OF CANADA (France)
uiiMiMimiminiMiiniiiiiiiiiiiiiiiiiiiiiuuiiiDMUiiiioini]iiiaiuiiitinriraiiisiiistmi[iiiiiiiiiniaiiiutimiiuimiiiiiuinii]Diiniiuii|
I The Sterling Bank |
I OF CANADA I
iiiitiiiiitiiiiiiiiiiiiiiiiiiuiiiiiiiiiiiiiiiiiiiaiiiiiiiiNiiiiuiiiiiMiiiiiiMiiiummiiiiiiiiiiiiuiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiitiiimmmiri;;!*^
An aggressiveness which is strong enough to over-
come obstacles ancJ Dcrjcvcre until the Service desired
is accomplished, is a part of our *' personal service **
policy which has been a potent factor in the healthy
growth of our own instititution.
Head Office
KING AND BAY STREETS, TORONTO
The National Bank of Scotland
Limited
Incorporated by Koyal Charter and Act of Parliament. Established 182S
Capital Subscribed ;{;5,000,000 825,000,000
Paid up 1,100,000 5,500,000
Uncalled 3,900,000 19,500.000
Reserve Fund 1.000.000 5,000,000
Head Office - EDINBURGH
WILLIAM CARNEGIE, General .Manager. GEORGE A. HUNTER. Sec.
LONDON OFFICE— 37 NICHOLAS LANE. LO.MBARD ST., E.C. 4
T.'C. RIDDELL. DUGALD SMITH.
Manager Assistant .Manager
The ngency of Colonial and Foreign Banks ir; undertaken, and the Accep-
tances of Customers residing in the Colonies domiciled in London are retired
on terms which will be furnished on application.
50%
Statistics show that 50% of the people
who died in Ontario in 1920 died without
leaving any property.
This does not necessarily mean that none
of these people had ever possessed any
property. Doubtless many of them at one
time had possessed property, but through
lack of oversight or good judgment they
lost all they had, and died penniless.
You can protect yourself against such a
calamity by investing your property
under the plan known as the " Voluntary
Trust."
This plan is fully set forth in our booklet
entitled " Voluntary Trusts and their
Uses."
Write to-day for a copy
THE
ToroatoGeaeralTrusts
CORPORATIOiS
BAY and MELINDA STS.
TORONTO
THE MONETARY TIMES
Volume 66
DOMINION CONTROL OF WATER-POWERS
Its Effect on the Ontario Radial Railway Enquiry and on the
Rainy River Investigation
By Andrew T. Deummond
Ir is satisfactory to know that the Premier of Ontario has,
in his usual frank way, admitted, in the Legislature, that
the province cannot longer claim any control over its navig-
able waters. Previous governments had assumed that the
waters on the Canadian side of the Niagara, St. Mary's and
St. Lawrence Rivers were under the jurisdiction of Ontario,
and from the sale of rights to power on the St. Mary's and
Niagara Rivers, had realized considerable revenue. It was
also overlooked by these former governments that, not only
were these rivers international, and therefore necessarily
under the jurisdiction of the Dominion, but that the large
export of power by the three power companies at Niagara
Falls constituted, in each case, a work or undertaking extend-
ing beyond the province to a foreign country, and thus, by
the terms of the Confederation Act, placing these power com-
panies under Dominion, and not provincial control. That
these riv-ers are navigable, and important parts of the great
St. Lawrence system, and with all obstructions in them over-
come by canals, admits of no question. Only the absence,
hitherto, of any interest taken by the Dominion Government
in the development of water-powers, has prevented its right
of control from long since arising.
Not Included in Natural Resources
A claim has been made on behalf of the province, that
the water-powers form one of its natural resources, and are
thus, essentially, its property. The natural resources of a
country are, howevex', things permanently tangible and en-
tirely within the country, and controlled solely by it. The
waters of the Great Lakes are derived more from rivers and
rainfalls in the United States than from those in Canada,
and the area of the United States side of these lakes is
greater than that of Canada, whilst the natural course of the
currents in them is towards this country. The waters, which
at some points are under American jurisdiction, become thus,
at other points, within Canadian limits, whilst by both evapo-
ration and rainfall over this great area, and the action of the
winds, the question of ownership of the waters is made still
more complicated. When they reach Niagara Falls, for in-
stance, they have become so intermingled that they can only
be regarded as international, but originating more, if any-
thing, in the United States than Canada.
With regard to the general question of control over the
waters and water-powers of the whole St. Lawrence system,
it must be also rememberd that at the Union of Upper and
Lower Canada in 1841, all provincial property and rights came
under the jurisdiction of the united Canada, and were thence-
forward controlled by it; and that there is nothing in the
Confederation Act of 1867 severing the two provinces, which,
by implication or otherwise, returned to either any rights or
control beyond those specifically named in the Act. No legis-
lative action of recent years by the Province of Ontario can
confer on the government of the province rights to the beds
of the lakes and rivers of the St. Lawrence system, and this
affects the title of perhaps all of the power companies.
The subject involves control by the Dominion not only
of the water-powers at Niagara Falls, including the Chippawa
developments, but those at Sault Ste. Marie, and on the Trent,
Rideau, Ottawa, St. Lawrence, Richelieu and Saguenay Rivers,
all of which are navigable. It does not, however, mean that
Ontario and Quebec will lose the advantage of their water-
powers, but that their development, the application of the
power, and the revenues from them, will be under the auth-
ority of the Dominion and not of the provinces. It does,
however, mean that whether the Ontario radial railway
schemes of the Hydro-Electric Commission shall be carried
out or not, will depend, not on the government and the muni-
cipalities of the province, but on the consent of the Dominion,
which will control the power, and that consent is not likely to
be given wherever new railways would be only competitive
with the National Railway system.
In the Rainy River District questions have arisen between
the Dominion, Ontario and Manitoba governments as to
water-levels and water-powers in their relations to Rainy
Lake, Rainy River and Lake of the Woods, which here form
part of the international boundary line between the United
States and Canada. Whilst the two lakes can be regarded
as navigable, more information may be necessary as to Rainy
River. The more important points presently, however, are
that where lake and river waters constitute the boundary line,
motives of policy require that the Dominion should control,
and that where, as in this vase, works have been constructed
across the river in order to regulate the water and create
power, the clause of the Confederation Act conferring rights
on the Dominion should be effective over these works on the
Canadian side and equally so if there are works on the Cana-
dian side to receive current from, or transmit it to, the United
States.
CANADA COMPANY ANNUAL MEETING
The annual meeting of the Canada Company was held
on March 31, in London, Eng. Henry C. Weld, Esq., the
Governor, presided; other directors present were Joseph C.
Weld, Esq., Wm. C. Scott, Esq., and John A. Brodie, Esq.
The chairman submitted the directors' report and
balance-sheet, which he thought all would agree were satis-
factory. Though the report presented no features of special
interest it showed that the company maintained a sound
position. Notwithstanding the prevailing uncertainty in
general finance, the company's land realization continued
steady. The amount received on that account, £11,122, was
about the same as in 1919, namely. £11,220, and was a sub-
stantial increase over the £9,437 in 1918. The reports of
conversions of leases to freehold with receipts of purchase
money since the close of the year showed the increased
activity to be continued, with consequent improvement in
total receipts. In the printed accounts it was shown that the
pre-emption moneys falling due during the cuiTent and the
following year were such as to justify confidence that the
company's financial position would be well maintained. On
the other hand the expenses had been somewhat increased by
additions to municipal taxes paid in Canada, which amounted
to £2,394, as against £1,889 in 1919, and by increased salaries
to the staff, which he had no doubt shareholders would ap-
prove. A new burden had been imposed on the company by
the corporation profits tax which should merit the attention
of shareholders.
CAMPAIGN AGAINST DWELLING HOUSE FIRES
The Ontario Fire Prevention League, in affiliation with
the Fire Marshal Department, recently inaugurated a province-
wide publicity campaign for the purpose of conserving our
homes as well as our lives from destnietion by fire. The
boys and girls of the province will be called upon to assist
in this most desirable and patriotic movement. Through the
principals and teachers of our schools, the league will dis-
tribute 250,000 copies of a "Home Inspection Blank" so that
the pupils, with the help of their parents, may answer the
questions. The primary object is to clean up attics, cellars,
back yards and remove hazardous conditions. The underly-
ing thought being to prevent fires by removing the cause
and thus save our homes.
It is pointed out that the high cost of building material,
the rapidly increasing population, and the enormous annual
destruction of dwelling houses, in which there were 5,644
fires last year in Ontario, have combined to make the hous-
ing problem one of the most serious and acute proportions.
Ontario is noted for its extravagance through unnecessary
fire waste, which is nothing short of an economic crime,
caused chiefly through our careless habits and indifference.
Statistics show that 64 per cent., or practically two out of
every three fires which occur, are in our homes; 80 per cent,
of which are preventable.
May 27, 1921
THE MONETARY TIMES
15
Money Is Worth More to You, Too
Lende
■ings deposit
D-day. So why shouldn't 3
your wages, would you ? Why,
; rate when you can get 4% for it ?
s charge more inter
get more interest on your
You wouldn t refuse an inc
then, should yoursavings e
Tne Union Trust Company will pay you interest at 4% per annum,
compounded regularly. Come and open your account here. If you
cannot conveniently call, open your account by registered mail.
Deoosits promptly acknowledged and withdrawals by mail accur-
ately and safely dispatched.
Union Trust Company, Limited
RICHMOND AND VICTORIA STREETS
Winnipeg TORONTO London. Eng.
MeBankofCanada'
INDUSTRIAL PROMOTION
Loans advanced at current rates upon any
of the forms of security recognized asade-
quate in banking practice. Prospects for
the extension or development of industry
invited for consideration.
Branches and Connections Throughout Canada
Head Office and Eleven Branches in Toronto s-5
Be sure your WILL is made, naming a Strong
TRUST COMPANY as your
EXECUTOR
Ask for Booklet: "The Corporate Executor."
CAPITAL, ISSUED AND SUBSCRIBED ..§1,171,700.00
PAID-UP CAPITAL AND RESERVE 1,172.00000
The Imperial Canadian Trust Co.
Ezecntor, Administrator, Assignee, Trustee, Etc.
HEAD OFFICE: WINNIPEG, CAN.
BRANCHES:
THE
Weyburn Security Bank
Chartered by Act of the Dominion Parliament
hkad office. weyburn, saskatchewan
Branches in Saskatchewan at
Weyburn, Yellow Grass, McTaggart, Halbrite, Midale
Griffin, Colgate, Panginan, Radville, Assiniboia, Benson,
Verwood, Readlj'n, Tribune, Expanse, Mossbank, Vantage,
Goodwater, Darmody. Stoughton, Osage, Creelman, Lew-
van, F'roude and Ardill.
A GENERAL BANKING BUSINESS TRANSACTED
H. O. POWELL. General Manager
TH€ M€RCHANT5 BANK
Head Office : Montreal. OF CANADA Established 1864.
Capital Paid-up $10,500,000 Reserve Funds and Undivided Profits, $9,743,375
Total Deposits (30th April. 1921) $154,911,487
Total Assets (30th April. 1921)
$190.367,4C9
Board of Directors :
President
SIR H. MONTAC;U ALLAN
Sir F. Orr Ork-Lewis, Bart.
Hon. C. C. Ballantyne
Farquhar Robertson
Geo. L. Cains
.Alfred B. Evans
Thomas Ahearn
Lt.-Col. J. R. MoODiF.
Vice-President
Hon. Lorne C. Webster
E W. Kneeland
Gordon M. McGregor
K. HOWARD WILSON
lOHN Baillie
Norman I. Dawes
Ross H. McMaster
General Manager - - DC. Macarow
Supt. of Branches and Chief Inspector : T. E. Merrett
General Supervisor - - - W. A. Meldrum
AN ALLIANCE FOR LIFE
Many of the large Corporations and
Business Houses vv^ho bank exclus-
ively with this institution have done
so since their beginning.
Their banking connection is for life —
yet the only bonds that bind them to
this bank are the ties of service, pro-
gressiveness, promptness and sound advice.
399 Branches in Canada, extending from the Atlantic to the Pacific
New York Agency : 38 Wall Street : W. M. Ramsay and C. J Crookaii, Agents
London. England, Office, 53 Cornhill : J. B. Donnelly, D S.O.. Manager
Bankers in Great Britain : The London Joint City & Midland Bank, Limited, The Royal Bank of Scotland
THE MONETARY TIMES
Volume 66
RETAIL STOCKS ARE NOW LIGHT
R. G. Dun and Co.'s Ret'iew of May 28 will report as
follows on business in the Montreal district: The Empire
Day celebration interfered somewhat with the regular course
of business, and the week has been without special incident.
Payments as a whole are graded as fair to Rood, except in
fai'-western and lumbering sections. Notwithstanding vari-
able weather conditions visiting retail buyers of dry goods
report gratifying sales, and a fair sorting trade is still in
progress. Orders for fall and winter furs, usually being
placed at this time, are comparatively few in number and
small in volume, and the numerous factories are but partially
employed. It is reported, however, that retail stocks are
light as a rule, and improvement is looked for as the season
advances. The majority of grocery orders are moderate, but
the aggregate shows a fair steady distribution. Sugar refiners
are all on the same basis as to price, quoting standard at 10 V2
cents, and no variations are reported in other lines. Some
scarcity is already becoming evident in certain lines of canned
goods. Activity in general manufacturing circles is at a
rather low ebb, and the iron market rules dull at the reduced
quotations. In general hardware the movement is barely as
active as last month. Four district failures are listed for the
week with liabilities of $218,000.
IMPERIAL BANK OF CANADA
Two outstanding features of the annual statement of the
Imperial Bank of Canada, which was presented to share-
holders at the annual meeting in Toronto on May 25, are
the strong cash position and the record increase in savings
deposits. The ratio of quick assets to liabilities to the public
is 30 per cent., and the ratio of liquid assets is 52 per cent.,
both showing a moderate improvement over the previous
year.
Total deposits, amounting to $99,125,011, stand at a re-
cord figure, nothwithstanding a reduction in demand deposits
as a result of withdrawals by the government. The de-
crease in this class of deposits, however, is more than coun-
ter-balanced by savings, which increased $9,120,945, or 12.55
per cent., during the year to $81,797,624.
Commercial loans, amounting to $61,957,400, increased
$1,504,457 for the year, which is an interesting fact, in view
of the conditions which have prevailed in business during
the greater part of the fiscal year of the institution. In
his report, Wm. Moff'at. general manager, pointed out that
a considerable percentage of this increase has been in ad-
vances to grain dealers, grain farmers and cattlemen. In
call loans there was a decline of about $2,000,000.
After careful scrutiny of the bank's assets, and after
full provision had been made for losses and bad and doubt-
ful debts., etc., profits stood at $1,287,061. as compared with
$1,379,318 in the previous year. In addition to the regular
dividend of 12 per cent., a bonus of one per cent., was ac-
corded to shareholders, and after the usual contributions and
charges, the amount to be carried forward, together with the
total brought forward from the previous year, was $1,171,839.
The history of the Imperial Bank is an interesting one,
extending back foi'ty-six years. Progress made during that
period has been quite notable, and comparisons add impres-
siveness to the present statement. Total assets now at $128,-
376,612 have increased 101 per cent., in ten years and 478
per cent., in twenty years. As against 1911 figures, total
deposits at the close of April, 1921, showed an advance of
over 113 per cent., and of nearly 139 per cent., in twenty
years.
Last year there was a net increase in branches opened
of eleven. This is not a very large number but is in accord-
ance with the policy of the bank which is for consolidation
at the present time rather than extension.
EXCHANGE QUOTATIONS
Quotations of exchange on European countries and the
United States as at May 2G, 1921, with comparisons, are
given below. The Canadian figures are supplied by the
Imperial Bank of Canada, while New York quotations are
given by the National City Co., Ltd., Toronto: —
Can., May 19. Can., May 26. N.Y., May 26.
London, cheque . . 445.50 440.50 394.00
France 9.G2 9.45 8.50
Germany 1.92 1.84 1.64
Belgium 9.62 9.45 8.50
United States ... 11% p. ll^Tk' P-
RAILROAD EARNINGS
The following are the approximate gross earnings of
Canada's transcontinental railways for the first three periods
in May: —
Canadian Pacific Railway.
1921. 1920. Inc. or dec.
May 7 $2,925,000 $3,520,000 -- $ 595,000
May 14 2,954,000 3,576,000 — 622,000
May 21 3,069,000 3,633,000 — 564,000
Canadian National Railway.
May 7 $1,763,538 $1,896,301 — $ 132,763
May 14 1,909,558 2,073,563 — 164,005
May 21 -. 1,891,435 1,946,107 — .54,672
Grand Trunk Railway.
May 7 $1,788,310 $1,548,988 + $ 239,322
May 14 1,762,926 1,664,627 + 98,299
M&y 21 1,899,720 1,704,935 + 194,785
WEEKLY BANK CLEARINGS
The following are the Bank Clearings for the week
ended May 26, 1921, compared with the corresponding week
last year: —
Week ended Week ended
May 26, '21. May 27, '20. Changes.
Montreal $100,952,363 $124,369,506 — $23,417,143
Toronto 91,055,462 87,143,947 + 3,911,515
Winnipeg 47,613,417 40,516,442 + 7,096,975
Vancouver 11,466,966 14,920,818 — 3,453,852
Ottawa 6,996,263 9,385,875 — 2,389,612
CalgSry 5,736,118 6,402,679 — 666,561
Hamilton 4,931,721 6,378,684 — 1,446,963
Quebec 6,157,105 5,979,024 + 178,081
Edmonton 4,420,889 4,685,345 — 264,456
Halifax 2,753,074 4,507,164 — 1,754,090
London 2,584,901 3,321,950 — 737,049
Regina 3,028,746 3,533,039 — 504,293
St. John 2,268,015 3,132,788 — 864,773
Victoria 1,896,393 2,188,013 — 291,620
Saskatoon 1,404,694 1,792,490 — 387,796
Moose Jaw 1,012,575 1,328,317 — 315,742
Brantford 1,015,768 1,279,373 — 263,605
, Brandon 527,871 596,245 — 68,374
Fort William 648,641 732,100 — 83,459
Lethbridge 535,512 575,276 — 39,764
Medicine Hat 377,467 461,163 — 83,696
New Westminster 503,419 600,051 — 96,632
Peterboro 766,728 831,137 — 64,409
Sherbrooke 966,023 1,167,256 — 201,233
Kitchener 835,932 1,025,369 — 189,437
Windsor 2,832,394 2,625,000 -|- 207,394
Totals $303,288,457 $329,479,051 — $26,190,594
Moncton 1,380,566
May 27, 1921
THE MONETARY TIMES
AUSTRALIA and NEW ZEALAND
BANK OF NEW SOUTH WALES
(ESTABLISHED 1S171
PAID UP CAPITAL - - . • _aM. - 5 24,655,500.00
RESERVE FUND ... - V V 'T^ C'^ 16,750,000.00
RESERVE LIABILITY OF PROPRIETORS ^POsw^^^^^l ------ 24,655,000.00
^lJ^J^^^^^^^ $ 66,061,000.00
AGGREGATE ASSETS 30th SEPT., 1920 >i!SSSigj^^i^^ $362,338,975.00
Sir JOH.\;kLSSELL FRENCH. K.B.E.. General Man-lger
;i.57 BRANCHES and AGENCIES in the Australi.ln States. New Zealand, Piji. Papua (New Guinea), and London. The Bank transacts every description
of Australasian Banking Business. Wool and other Produce Credits arranged.
HEAD OFFICE: GEORGE STREET, SYDNEY. LONDON OFFICE: 29 THREADNEEDLE STREET, E.C.2.
AcEVTS: BANK OK .MONTREAL. KOYAL BANK OF CANADA
The Security Trust Company, Limited
Head Office
Calgary, Alberta
Liquidator, Trustee, Receiver, Stock and Bond Brokers,
Administrator, Executor. General Financial Agents.
.M. CONNACHHk Pros, and .M,,ii.i>;iiiK Diici
Executors & Administrators Trust Company Limited
HEAD OFFICE - MOOSE JAW. SASK.
Acts as Liquidator, Trustee, Executor, Etc.
al Adminislrntor for the Judicial Di^ricl of Moose Jow. Authorized
Truslc.
the Bankruptcy Ac
A MUNNS. Manager
Gborce Euwahi>s. F.C.A.
H Percival Kuwakds W. Po.mi
A. Gkofprbv Howards Oswald
T. J Macnavara T. p. Ge
K A .Ma
W. A. Lo
LR H. Edwards, F.C.A.
s W. Herbert Thompson
■s Charles E. White
J. L. Atkinson
John M. Edwards
EDWARDS. MORGAN & CO.
CHARTERED
OFFICES
TORONTO . .
CALGARY . .
VANCOUVER
WINNIPEG ..
MONIREAL
ACCOUNTANTS
CANADIAN MORTGAGE BUILDING
HERALD BUILDING
LONDON BUILDING
ELECTRIC RAILWAY CHAMBERS
McGILL BUILDING
CORRESPONDENTS
HALIKA.X. N S ST. JOHN, N.B
LONDO.N. E.NG.
PARIS, FRANCE.
COBALT, ONT
NEW YORK, U.S. A
Executorship
Ts a Business
— not an activity to be carried
on in spare time.
That is why executorship is
being performed more and
more by trust companies, who
speciaHze in the administra-
tion of estates.
Have you made your will, ap-
pointing an executor?
Write for our Booklets.
National Trust Company
Limited
Paid-up Capital and Keserve - $4,U0U,UII()
Assets under Administration over $94,000,000
18-22 KING STKEET EAST ■ - TORONTO
REAL ESTATE
\ our rents must be collected when
due. Taxes must be checked up
and paid. Repairs need the attention
of someone experienced in caring for
property. Responsible tenants must
be secured.
These are services efficiently rendered
to our Clients by our Real Estate
Department.
THE BANKERS'
mVST CDMBWir
Head Offices: MONTREAL
Authorized Capital $1,000,000
/Vine Branches throughout Canada
Premises in the Merchants Bank Building in each city
18
THE MONETARY TIMES
Volume 66
AMERICAN INTEREST IN CANADA
Manufacturers Eroct Canadian Plants, Underwriters Recom-
mend Canadian Securities, and Farmers Buy Canadian
Lands — Movement of Population in Recent Years
— Cheap Lands Are Main Attraction
By E. L. Chicanot
TO know a good thing when they see it is a dominating
attribute of the American people. Thus pithily is ex-
plained the interest the people of the United States have
evinced in Canada, the resumption of which in the year past,
after the stagnation of the war period, was a most significant
feature in economic development. This interest in Canada
and Canadian affairs is very gratifying to our country in
more ways than one, for it may be regarded as a warm tri-
bute to the wealth, existing and potential, of Canada, and a
keen foresight into the development of the country at the
hands of an intelligent, active people. And interest in Do-
minion affairs is not confined to one or a limited number of
classes, as can be proven by any bureau circulating Canadian
information, but from farmer to capitalist, from artisan to
manufacturer, every class can see some profit to itself in the
wide variety of wealth-giving sources the Dominion possesses
to those who will open them to their own benefit and the
national aggrandizement.
This interest in all that pertains to the Dominion has
been strikingly evident since the termination of the war, the
opening and progress of which of necessity confined attention
to opportunities in the United States. As the rate of ex-
change has worked against British capital entering the Do-
minion, the reverse has been the case in the matter of
American money, w-hich has flowed across the border, where
it has been worth so much more. The natural tendency of
Canadians in this situation to buy at home, where their dollar
is worth one hundred cents, has led many American manu-
facturers to establish branch factories here and has turned
the eyes of a host of others to the field they may lose at
least temporarily.
Evidences of Interest
Throughout the summer months crowds wearing distinc-
tively American clothes and conversing in unmistakable
American accents, have thronged our cities and beauty spots.
Dozens of conventions of international moment gathered in
the larger centres and transacted business reported in many
instances over the entire globe. Tourists came up by rail-
road and automobile in their thousands, left much wealth,
and returning made the best kind of advertising agents.
Capitalists, scientists, chemists, prospectors, and a host of
others interested in our natural resources, have delved into
every corner of the land and sown a seed which w-ill be har-
vested for years to come. Throughout the summer hotels
were filled to overflowing with Americans and all seemed to
be satisfied with what they had come to see. Canada has
indeed been popular with our cousins across the border and
they possess possibly the keenest realization of the national
status Canada has achieved since the war. Certainly they
understand her potentialities to a greater degree of clearness
than did the European delegates at the League of Nations.
Canada has passed on to a sound status with a place among
the nations of the world and Americans best appreciate the
contrast to the boom days before the ambitions of a German
Emperor called the manhood of the country across the sea
to fight and make the best advertising agents the Dominion
ever had in Europe.
Industrially the assault on Canada by American capital
since the war has been a forceful one, w-hich has the pleasing
indication of increasing vehemence as time goes on. Though
it is quite impossible to give really accurate figures of the
monies from the United States which have been invested in
Canada, the total sum has been variously estimated authori-
tatively at from $1,200,000,000 to $1,600,000,000. This money
is stated to be flowing into Canada, to be invested in
Canadian industries and securities, at the rate of about
$200,000,000 per year. .A.t the present time American capital
invested in Canada is about one-half of British capital so in-
vested, for the latter, due to conditions following the war in
the British Isles, and the lamentable depreciation of the
pound, has ceased its flow to Canada to a great extent.
Movement Strong During War
There ai^e more than five hundred branch factories of
American firms in Canada at the present time, of which
about three hundred have been established here since the
war. The year just concluded saw the tide at its flood and
inquiries from United States firms were far more numerous
than in any previous year. One industrial commissioner of
an Ontario city near the border dealt with more than one
hundred inquiries from American firms who had the esta-
blishment of branch houses in the city under consideration.
The causes which bring these industrial concerns to
Canada are not far to seek. Locating in Canada, they enjoy
the privilege of preferential tariffs within the British Empire,
which is a very considerable advantage. They are offered
many inducements in locating, such as cheap sites, low water
power rates, and the fui'nishing of electricity and gas on
economic terms. Their Canadian market is easily and more
'cheaply reached than from the parent houses across the bor-
der, and Canadian labor, it will generally be conceded, is in
a more healthy condition than in the United States and not
troubled to such an extent by strikes and labor disputes.
These advantages, and others readily seen, are bringing
LTnited States manufacturers in scores from across the border.
Another line of interest in Canada e\inced from across
the other side of the line has been that of brokerage firms
in Canadian bonds and securities to be recommended to their
clients as perfectly secure and safe investments for savings
and capital not speculative. Just how the Canadian security
field is regarded in the United States can best be illustrated
fi-om a published statement of the brokerage firm of Pea-
body, Houghteling and Company, of Chicago, which appeared
recently: "Many years ago, looking to the future as well as
to the immediate opportunity, we began to investigate Cana-
dian industries as a field for" the investment of American
capital, to purchase with, on our faith, for distribution among
our clients such issues of securities as we could unreservedly
recommend. Our confidence in Canada has been amply re-
warded by a long and steady growing list of customers who
request Canadian securities for the investment of a substan-
tial part of their savings." The statement goes on to prove
that Canada possesses nationally all the tabulated qualities
which are the most perfect insurance for safety against loss
in bonds and securities.
Emigration to Canada
But there is a greater, eminently more valuable factor
in the United States contribution to Canada which brings
not only its wealth to exploit the nation's trade and natural
resources, but, giving itself in its entirety to Canada, denotes
intelligent manhood and womanhood to develop the virgin soil
and become the fathers and mothers of future generations
•of Canadian citizens. This is the emigration tide — of inestim-
able national worth. The American influx has from the days
of Confederation had an important bearing on Canada's an-
nual emigration figures, being second only to the British Isles
in point of numbers and usually first in the average posses-
sion of wealth. The important proportions of this flow, held
consistently, has in the progress of the years had a decided
bearing on national development, and to-day the annual ag-
gregate is noted widely as being an influential factor in Cana-
dian economy and Dominion evolution.
Canada has always looked most kindly on the emigration
of United States citizens and encouraged it in every way" —
by personal solicitation through agents, and by propaganda
of every nature. Although from the standpoint of a British
Dominion, the question of Canadian citizenship and the pro-
blem of national assimilation the Canadian authorities natur-
ally favor first the peopling of Canada with citizens already
British, familiar with the ideals of the Empire, the system
of government and other matters which pertain directly to
May 27, 1921
THE MONETARY TIMES
Banking Service for AH
A S the majority of the first
*^ directorate of the Bank of
Montreal, formed in 1817, were
Scotchmen or bore Scotch names
it was but natural that they should
seek in Canada "to extend and to
perpetuate for the farmer and the
merchant the benefits and stimulus
of a system the worth of which
Scotland's prosperity could abund-
antly prove." One of the out-
standing features of the system
was the maintenance of numerous
branches by banks of large capital.
The Bank of Montreal, in adopting
this feature from the outset, laid
the foundations of a service by
which branches have been estab-
lished throughout the entire
Dominion.
At each of these branches the h;Il
service of the complete organizaciDii
is available.
Through this service the Bank of
Montreal offers to all classes of the
community, from the smallest sav-
ings depositor to the largest com-
mercial organization, good and ad-
equate banking facilities. Each
customer whether his account be
large or small is welcome as a
client of the institution.
BANK OF MONTREAL
Established Over 100 Years
Capital Paid Up ^22,000,000, Rest ^22,000,000.
Total Assets ^560,150,812.85.
564
THE MONETARY TIMES
Volume 66
Canada as part of the British Empire, greater effort has been
put forth to induce immigration from the United States than
from the British Isles. There are many reasons for this.
The same extent of advertising is not needed in the over-
crowded labor markets of the British Isles, from which there
is a continual unsolicited flow of emigration to alleviate the
congestion, as in the United States, which is still in a posi-
tion to accommodate certain classes of emigrants. In a coun-
try which offers such advantageous living conditions as the
United States, a citizen, before contemplating emigration,
must be clearly shown the greater advantages Canada has
to offer him individually.
American Immigrant is Desirable
The United States emigrant is regarded second only to
the Britisher as a national asset to Canada. As far as social
conditions go, the international boundary is largely imagin-
ary; in general the same ideals instigate both races, the
every day run of existence in Canada approximates very
closely that of the United States, and the emigrant from
that country finds his niche much more rapidly, and be-
comes a valuable producing citizen in a much shorter space
of time than the settler from the British Isles or Europe.
Again, on the average, the emigrating American is wealthier
than the newcomer from the British Isles, which is accounted
for by the fact that the greater part of the emigration from
across the line consists of farmers who have sold their rela-
tively high priced holdings in their own country to come
north with the money. It has been estimated that the British
emigrant, previous to the recent enactment compelling the
possession of $250 on entrance to Canada, brought into the
country with him the sum of about $100, whilst various esti-
mates have been made of the United States per capita amount
up to 81,150. This would seem to be overwhelmingly liberal,
as the figures for the year 1919 given out by the Department
of Immigration and Colonization place this at $342, and esti-
mate it for 1920 at $372. It will be readily conceded that
the classes of emigrants attracted to Canada from the United
States have been those in a position to bring more money to
their new home than those from any other country, which is
an important factor in settlement, rapidity in producing
worth, and general assimilation.
Indications are that emigration figures when fully com-
piled and published for the year 1920 will show a flow of
nearly 50,000 people from the United States to Canada for
the twelve months, bringing in its tide wealth in cash and
effects to the extent of about eighteen million dollars. The
total emigration for the first eleven months of the year was
42,807, and the accompany wealth $17,519,003. These figures
are interesting, not on account of their magnitude, for the
toll is mediocre in comparison with the decade average, but
because 1920 was the first post-bellum year in which there
was any indication of the faintest kind of getting back to
pre-war conditions in general, and that in this period the
figures of American emigration tend to show a resumption
of the gratifying regard in Canada which the war inter-
rupted.
The Movement Across Border
In the year 1871, when the first census after Confedera-
tion was taken, Canada was found to have a population of
3,485,761 in the four provinces which then constituted the
Dominion. Returns of that census showed that 24,162 of
these people had been born in the United States. Unfortun-
ately from that time, prior to the year 1892 the method of
taking emigration figures from the United States was very-
faulty, no care being taken to ascertain whether those cros-
sing the border intended staying in Canada or whether they
were returning Canadians. It was, in fact, much the same
system used now by United States emigration authorities in
computing the entrance of Canadian citizens to their country.
Hence no reliability can be placed on figures prior to 1892.
since which time, however, they have been approximately
correct and may be taken as authoritative. This accounts for
what would appear to be a decided drop in emigration from
across the border between 1890 and 1900. The following are
1905
43,543
1913
139,009
1906
57,796
1914
107,5.30
1907
34,659
1915
59,779
1908
58,312
1916
36,937
1909
59,832
1917
61,389
1910
103,798
1918
71,314
1911
121,451
1919
40,715
1912
138,121
1920
the figures of emigration from the United States to Canada
from the year 1892: —
1897 2,412
1898 9,119
1899 11,945
1900 8,543
1901 17,987
1902 26,388
1903 49,473
1904 45,171
These figures are interesting as illustrating the steady
normal increase in the tide from across the international
border and the consistency with w-hich the flow has held. It
will be seen that the yearly contribution rose in an even
proportion almost up to the year of the outbreak of the war,
when many of these ex-patriots flocked back to their former
homes at the prospect of conscription and heavy war taxa-
tion. For the same reason the normal flow from the other
side was interrupted with the industrial prosperity of the
United States, at that period an added inducement to stay
at home. This situation was even more seriously affected
with the entry of the United States itself into the war.
American emigration has not yet by any means got back to
pre-war proportions, but readjustment in every economic
line has been slow and the tendency woud appear to be to-
wards a rapid resumption of the pre-war tide.
Go Into Agriculture
In the past three decades the largest proportion of the
United States emigration has found its way to the western
provinces and for the most part on to the land. From 1897
to 1919 twenty-seven per cent, of American emigrants made
entry for homesteads in western Canada, as against eighteen
per cent, of British emigrants. And this, it must be borne
in mind, does not take into account farmers and farm labor-
ers who have purchased farms in the west or who have settled
in other parts of the Dominion, so that it can readily be as-
sumed that the major portion of those Americans coming to
Canada went to follow Canada's first and most important
industry. The following tables of the comparison of in-
crease of settlers of previous American nationality in the
years 1901 and 1911 shows the fiow to the western provinces
of the Dominion where these emigrating farmers had found it
to their advantage to either take up free homestead land or
purchase cheap holdings after having sold out their high-
priced farms : —
1911. 1901.
Canada .303,680 127,899
Alberta 81,357 11.119
British Columbia 37,548 17,164
Manitoba 16,326 ^6,922
New Brunswick 5,766 5,477
Nova Scotia 4,802 4,394
Ontario 55,674 44,175
Prince Edward Island 829 764
Quebec 29,842 28,405
Saskatchewan 69,628 2,758
Yukon 1,908 6,721
Generally the industrial centres are more apt to attract
European emigrants, whilst the majority of American set-
tlers go on the land. The immigi'ant from the United States
is a good farmer in Canada, being well versed in the con-
ditions he meets, as they are very similar to those he has
left. In view of all this it is enormously gratifying to see the
tendency towards a resumption of the swelling figures of
pre-war emigration from the United States. Last year was
the first to see the returning interest on the part of the
farmer, and in addition to those who settled, thousands toured
the farming areas and returned well pleased with what they
saw, intending coming back this year to secure holdings.
This year will see the fruition of their visits, and without
doubt succeeding years will see an ever increasing flow as
the values of American farm lands rise higher and their oc-
cupants discover they can grow better crops upon the cheaper
lands of the great Canadian western expanse.
May 27, l'J21
THE MONETARY Ti:\IES
The Saskatchewan Mortgage and
Trust Corporation Limited
iTrustee under Bankruptcy Act)
offer you the benefit of (heir experience as
EXECUTORS, ADMINISTRATORS, TRUSTEES,
MANAGEMENT OF ESTATES, ETC.
MONEY TO LOAN ON IMPROVED FARMS
AND MODERN CITY PROPERTY
REGINA
SASK
A BOND FOR $100
*I0O or more invtsted in a " Canada Permanent *' Bond
for ONE YEAR will earn interest at FIVE PER CENT, per
annum, payable half-yearly. A higher rate is paid on longer
term investments. Interest begins the day the money is re-
ceived, and the Bond will be made to become due on any date
the investor desire*^.
The Bonds are issued in small sums and for short terms
to enable those of moderate means to obtain a high grade se-
curity yielding a fair return and still have their funds avail-
able within a reasonable time. Small amounts should not be
allowed to remain idle when they can be employed to such
good advanta^ie as by investing them in these Bonds.
The Corporation has been issuing these Bonds for. near-
ly half a century. They are a first charge against its assets,
which amount to over S33.000.000,
Canada Permanent Mortgage Corporation
14-18 TORONTO STREET - - TORONTO
Established 1855
THE DOMINION SAVINGS
AND INVESTMENT SOCIETY
M;isonic Temple Buildins. London. Canada
Interest at 4 per cent, paj-able half-yearly on Debentures
T. H. PURDO.M. K.C.. President NATHANIEL MILLS. Manager
The Hamilton Provident and Loan Corporation
Head Office. Kins Street, Hamilton. Ont.
Capilal Paid-up, $1,200,000. Reserve Fund and Surplua
Profiln, $1,315,587.70. Total Asselt, $4,800,104.82.
TRUSTEES AND EXKCUTOHS are authorized hy Law to invest Trust
Punds in the DEBENTURES and SAVINGS Dtl'ARTMENT of this
Corporation.
GEORGE HOPE. President U. M. CAMERON. General .Manager
^""^ Ontario Loan
& Debenture Co.
LONDON IxcoRPOR.tTED 1870 Canada
C.VPITAI, .■\.Nn Reserve Fund J4,000.000
SHORT TERM (1 TO 5 YKARS)
DEBENTURES
lELD INVESTORS
5 J 0/ SHOR
2/0 YI
5^2
.JOHN .\KCLAHV, l>i
A M. SMART, Manager
/~\\'ER 200 Corporations,
^■'^ Societies, Trustees and
Individuals have found our
Debentures an attractive
investment. Terms one to
five years.
The Empire
Loan Company
WINNIPEG, Man.
THE TORONTO MORTGAGE COMPANY
Office, No. 13 Toronto Street
Cipital Account. »;'4*.5.'iO.O« Kcsctve Fund »700,00«.«MI
Total Assets, lfl.«.l(iK,5IM».U0
President, WELLINGTON FRANCIS. Esq.. K.C.
Vice-President. HERBERT LANGLOIS. Esq.
Debentures issued to pay 5'/^%. a Leg.il Investment for Trust Funds.
Deposits received at 4% interest, withdrawable by cheque.
Loans made on improved Real Estate on favorable terms.
WALTER GILLESPIE. Manager
COAL MINE FOR SALE
■W/E have acquired by foreclosure and offer on easy terms a fully
'^ equipped mine. 320 acres. 5 to 7 feet seam, at Roche Percce on
.■^oo Line. There is a fortune in this proposition. Parliculais or
THE CANADA STANDARD LOAN CO.
520 MclNTYRE BLOCK, - WINNIPEG, MAN.
Canadian Financiers
Trust Company
Head Office - Vancouver, B.C.
TRUSTEE EXECUTOR ASSIGNEE
Agents for investment in all classes of Securities.
Business Agent for the R. C. Archdiocese of Vancouver.
Fiscal Agent for B. C. Municipalities.
Inqairies Invited
General Manager Lieut. -Col. G. H. DORRELL
Canadian Guaranty Trust Company
HEAD OFFICE, BRANDON. Man.
Acts as Executor, Administrator, Trustee, Guardian, Liquidator
Assignee, and in any other fiduciary capacity.
Official Administrator for the Northern Judicial
District and the Dauphin Judicial District in
Manitoba, and Official Assignee for the Western
Judicial District in Manitoba and the Swift
Current Judicial District in Saskatchewan.
Branch Office
Swift Current, Saskatchewan
TORN R LITTLE. Managing Director
THE lAI O N E T A R Y TIME
Volume 66
WHY BANK CREDITS MUST BE SHORT TERM
()l>li)<;atiuns to Depositors Itequire That Assets iMust be
IJ(|uid — Comparison Mith Mortgage Loans
and Commercial Credits
By a. B. Barkek
IN connection with bank advances, it is frequently asked,
How mucli credit should the customer be entitled to on
the showing of his statements of assets and liabilities and
his profit and loss account ? In this form the question cannot
l)e answered, for the reason that it is not a practical question.
A bank is a dealer in credit, which it buys and sells, and
tlie same principles of merchandising which obtain in ordinary
business transactions must govern its dealings. No customer
buying goods from a wholesaler asks what quantity will be
sold to him on the strength of his statement. The transac-
tion is the other way around, the buyer states the quantity
he wants, and the dealer decides how much to sell, according
to the customer's ability to pay for it within the time agreed.
and this is precisely the attitude which the banker must take
if his business is conducted on proper business lines. Before
a wholesaler can sell the wares in which he deals, he must
purchase them from others.
Generally these purchases are made on time, and when
the wholesaler sells he must be assured that his customer
will bo able to pay for the goods purchased as promised, so
that in turn he can pay those who originally supplied the
goods. In other words, the wholesaler, in order to obtain the
goods, entered into contracts by which payment was to be
made at a certain time. When he sells he is a party to an-
other contract by which his customer agrees to pay him for
the goods, and he depends on the prompt fulfilment of this
and similar contracts to carry out his obligations.
Must Meet Depositors'- Demands
The bank is in the same position. In order to make an
advance to a ctistomer a bank must obtain the funds from
others, its depositors. That is, it buys credit from those who
have it to sell, and sells it to those who want to buy, which in
effect is what the customer does when he obtains a loan
from the bank. The bank's contract with its depositors calls
for payment on demand, and in order to be able to carry out
this agreement the bank must make reasonably certain that
the loans it makes will be paid as agreed. Bank deposits are
payable on demand, but if all depositors were to ask for pay-
ment at once, it is obvious no bank could continue in business.
Experience has shown, however, that only a certain percent-
age of such demands will be made from day to day in the
ordinary coui-se, and it has been found that by holding in
cash a sum sulficient to take care of the ordinary daily with-
drawals, together with a further cash reserve for emergen-
cies, the balance can be advantageously used in supplying the
legitimate requirements of the business community," and by
so doing rendering an inestimable service to the country, as
well as a profit to the institution.
This is the basis of modern banking, which, by receiving
deposits, gives the credit so obtained a wider currency, and
makes it available all over the country. A man in his own
locality may be known to be quite good for his undertakings.
A hundred miles away, however, no one may have heard of
him, but, through the medium of the banking system, this
unknown credit can be utilized and made effective for the
business of the country.
Essentially Short Term Loans
Prom the foregoing it will readily be seen that bank ad-
vances are not intended for transactions of a class likely to
be long in completion. It is not intended, for instance', that
a bank should make advances to a manufacturer to build a
factory or purchase machinery, or that it should make ad-
\ances to a farmer to purchase land. Funds for such pur-
poses should be arranged by way of a long term loan or
mortgage. Jhe true purpose of bank advances is to supple-
ment working capital, p.nd to enable the dealer and trader
to keep his stock moving, and the manufacturer to turn the
raw material into finished product and dispose of it. With
many, of course, a loan is a loan, whether it is a mortgage
loan or a bank advance, and the fact is ignored, that one
comes from funds sperifically supplied for the purpose, and
the other from funds repayable on demand.
When a wholesaler sells to customers who do not pay as
agreed, it naturally follows that his own obligations will not
be met, and his business will be curtailed in consequence. He
will be able to buy less and will therefore have less to sell.
With a bank the same thing is true. If it lends money,
that is, sells credit, to those who do not pay promptly, it;
business will be curtailed to the extent of the funds so tied
up, and it will have that much less to lend. A bank is organ-
ized to serve the whole community and obtains its charter
on that understanding. The various members of the indus-
trial community, farmers, traders, and manufacturers, all
depend on borrowing to carry on their business activities.
Their requirements, however, come at different seasons of
the year, and when each class cleans up promptly at the end
of the season the funds so released are available for the
others in their turn. If for any reason one does not clean
up and repay the advances, the next in turn must go on short
allowance. An interesting illustration of this was reported
recently from Noi-th Dakota, where some twenty banks have
been given 60 days' extension by the local examiners. They
are believed to be solvent, that is, their assets are considered
more than ample to meet their obligations, but their loans
have been made to farmers on their grain, and to cattle
dealers on their cattle, and as prices are down these bor-
rowers will not sell, and consequently the banks' advances
are not paid. The friends and neighbors of these borrowers
are depositors in the banks in question, and, owing to the
circumstances referred to, are unable to draw their balances
for sixty days, in order to give the banks an opportunity to
collect their notes.
A bank must keep its advances liquid, just as a dealer
must keep his business liquid. Any business is organized to
make profits, and if the business is successful the debts in-
cun-ed will be paid, and the owners receive their returns, out
of the process of making profits. When the business does
not succeed the debts incurred must be paid out of the assets
of the business. When it makes advances, therefore, the
bank must feel reasonably sure that the process of making
profits will pay the advances, as it does not want to be in
the position of having to obtain payment by realizing on the
assets. One method of ensuring this is by making certain
of a steady turnover of its funds, and to do this it must see
that its customers have sufficient turnover in their business;
that the process of making profits is functioning properly.
The bank's prosperity depends upon the prosperity of its
customers, and it succeeds as they succeed.
IMMIGRATION RECOVERING
The followin
during the fiscal
20:—
% is a statement of immigi'ation to Canada,
year 1920-21, compared with thE.t of 1919-
1920
i-21.
Increase
From
Other
over
British.
U.S.A. ci
ountries.
Totals.
1919-20.
April
6,229
6,.'^24
734
13,287
18%
May
12,414
5,353
1,844
19,611
92%
June
9,844
4,720
1,780
16,344
109%
July
. 10,472
4,301
1,888
16,661
50%
Augu.st
7,404
5,838
2,510
15,752
4%
September
6,40.3
4,227
2,718
13,3.50
October
7,602
3,945
3,.305
14,852
3%
November
4,69.5
3,262
2,890
10,847
34%
December
1,968
2,110
3,105
7,183
14%
January
987
1,751
1,515
4,253
1%
February
1,380
1,936
2,012
5,328
16%
March . . . .
4,865
4,292
1,852
11,009
2%
Totals
74,265 48,059 26,153 148,477 27':
May 27, 1921
THE MONETARY TIMES
m:
i^
All the Delights of Water
Travel and Sojourns Ashore,
Combined in One Grand Holiday
The scenic route on the
famous Lower St. Law-
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River provides a cruise of
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\ S.S. "Cape Eternity" — up-
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mencing July 9th) cruising
amidst quaint Quebec
hamlets of old-world ap-
pearance, and spending
some time at the charm-
ingly-located summer re-
sorts of
MURRAY BAY (the Newport
of Canada)
TADOUSAC (where Jacques
Cartier First Landed)
QUAINT OLD QUEBEC
(Cradle of New France)
Boat docks long enough
at these points to enable
passengers to visit ashore
or to view the surround-
ings while lounging in
comfort on deck.
No hotel expenses — you
live on the boat. Each
day you experience some
new enchantment — each
mile brings its added
charm of panoramic inter-
est— until, as a climax,
the stupendous capes
"Trinity" and "Eternity"
loom on the horizon of
the Saguenay — higher
than Gibraltar, impressive
in their awe-inspiring
grandeur.
Rates reasonable — full information on request
Canada Steamship Lines Limited
221 R. and O. Building - Montreal, P.Q.
li
■
HI
THE MONETARY TIMES
Volume 66
WHOLESALE PRICES SEEK LOWER LEVELS
The General Downward Movement Has Not Yet Halted,
Although There Has Been a Slight Hesitation on
the I'art of Some Commodities
WHOLESALE prices continue to trend downward. In
April, li)*21, the index number lor all commodities,
according: to the Department of Labor report, was 253.7,
compared with 263.1 in the previous month, 353.1 for April,
1920, 279.6 for April 1919, 269.4 for 1918, 136.7 for 1914
and 136.3 for 1913.
.AH commodities did not move downward last month,
however, mutton, poultry, fish rjnd native fresh fruits and
vegetables, among the foods, and silks, jutes, hides and tal-
lows and crockery and glassware among other commodities,
showing a tendency to become firmer. It is a notable fact,
because it is the only instance, that hides and taJlows are
now at a lower level than in 1913. All other commodities
are considerably above pre-war levels.
The following table gives the April details of index num-
iieis, together with comparisons:^ —
(DEPARTMENT OF LABOUR
oEs
=3
Index N
umbers
FIGURES)
•Apr.
1!<21
•Mar.
1921
*Apr.
1920
Apr.
1913
I. Grains and Fodders:
6
i
5
15
6
6
3
2
17
9
6
3
9
1
i
i
5
3
IB
10
4
6
5
'^5
i
3
2
1
2
■M
i
i
3
11
11
12
10
33
e
I
10
11
20
14
48
6
4
t
4
16
16
4
6
7
17
203.5
18J.2
240.0
211. B
272.7
279 0
214. S
351 fi
303.2
248.5
200. B
275.5
225 5
303.3
234.9
19i.3
162 0
171.7
la3 9
23B.1
182.7
211 2
180 1
217 S
211 2
219 !)
158.8
308,2
331 U
252 1
250 3
I4g 4
194 6
232 0
188 0
215.8
148.3
254.4
203 0
274.8
2.56 8
267.6
414.7
250.0
302.6
313.4
351.9
515.11
164.1
285.9
352.7
203. B
1P8.0
270.1
187.3
289.7
233.2
207.5
244.1
229.9
280.2
288.9
•/38.B
553.2
308.1
268.8
200.5
254.9
218.6
258.8
238.7
192.3
177.0
171.7
2oa.K
245.fi
210.1
2iS.5
201.2
234.1
213.4
231.4
li5.3
301.9
3BI.3
252.1
258.9
l''5.3
20.1.5
■/57.8
194.2
226.4
153.2
256.1
208.8
281.3
262.5
275.6
118.3
251.2
318.2
3.2.9
436.5
512.0
164.1
286.5
381.5
203.2
J9S.0
2H8.0
187.7
299. B
418 9
438 8
343.4
399 0
319 2
363 9
295 7
476 6
359 S
302 6
227.2
263 2
239.2
312 5
183 0
283 4
678 9
21H 3
377 8
311 9
222 7
407 7
231.9
301 6
112 7
400 1
2JB 2
612 1
56-1 7
306 7
428 7
507 6
315 0
339 7
391 8
273 2
236 8
250 3
253 0
311 4
258 7
289.3
485 0
256 7
173 5
386.6
419 2
439 0
164 1
292.2
.371 8
227.2
1779 7
316.3
207 5
613 b
.353 1
136 6
Western
All
II. Animals AND Meats:
136 0
Hogs and hog products
184 6
All
183 1
IV Fish :
All
138 4
V. Other Foods:
(a) Fruits and vegetables
Fresh fruits, foreign
108,0
Fresh vegetables
Canned vegetables
All
122.9
125.2
116 5
(b) Miscellaneous groceries
126 3
Condiments
All
VI. Textiles :
Woollens
S8 0
llfi.7
1'5.2
143 4
Silks
213 0
120.4
Oilcloths
101.7
All
VII. Hides. Leather, Boots AND Shoes:
177 3
152 7
153 9
All
161,9
VIII. Metals and Ihplebents :
Iron and steel
106 1
133 2
All
116 3
IX. Fuel and Lighting:
Fiel
9.' 2
All
119 4
X. Building Materials:
178 4
111.8
146.9
All
141.6
XI. House Furnishings:
Furniture
146 6
Crockery and glassware
130.9
72.4
117 S
126,2
XII. Drugs and Chemicals
112.7
3J(i 5
134.3
113 4
XIII. Miscellaneous:
Raw Furs
All
i
262t
253.7
■?63 1
13fi.3
ADJIST.MENT OF FIRE INSLRANCE LOSSES*
Incendiaries One of the Recent Problems to be Considered —
Quickly Changing Values Also a Difficulty
By Jas. Taylor
E. A. Lilly Adjustment Ageiu-y, EdmotitoiL
TT is to the benefit of all and to the welfare of the fire
-•- and automobile insurance business in general, that the
local agent writing the business obtain a knowledge of the
methods adopted by the adjuster in the settlement of the
many varied types of losses experienced to-day. During the
past three or four years the continual increasing costs of
materials and labor removed a great deal of controversy over
the values of property totally destroyed, as, in this territory
a very small portion of the insuring public kept their insur-
ance to a standard of the cost of replacement. However,
during the past twelve months, from my experience, the
incessant advertising and pamphlets distributed about north-
ern Alberta, advising the increasing of insurance to present
values, is beginning to tell, and insurance is being accord-
ingly increased. Now, since the first of the year, in the lum-
ber market alone, there have been two reductions in prices,
representing a cut of almost 33 1-3 per cent., with the result
that the adjuster is now placed in the awkward position of
finding the value of a building less than the insurance, and,
for this reason, I ask that the agent forbear with the adjuster
and give him an opportunity to settle such losses in an amic-
able manner and have patience.
Three Parties to Consider
In the adjustment of losses, the present day adjuster, to
successfully conduct such work, has to consider three inter-
ested parties: first, the companies who employ him and who
desire an adjustment made on an equitable basis, according
to the conditions of their contract; secondly, the agent who
naturally is anxious for an adjustment to be effected that
will not reflect upon his future business; and, lastly, the
assured, between whom and immediate wealth the adjuster
is placed.
As you can see, it is no easy matter to effect an adjust-
ment and accomplish all that is desired by these three inter-
ested parties, but I find by introducing practical business
methods in determining the damage and loss caused by a fire
and eliminating guesswork, a great deal of unnecessary con-
troversy is avoided. With this in view, I have formed a
connection, during the past few years, with reliable mechan-
ics in every line of business, and the opinions and views of
these men greatly assist the removing of any difference of
opinion regarding the actual loss.
We are also confronted to-day with a large number of
fires which are undoubtedly wilfully started, but I find it is
a very difficult matter to obtain convictions in these cases,
even when very strong evidence is produced. The Provincial
Government of Alberta is now taking a very active interest in
the investigation of such fires, and in the future this will
materially assist in the reducing of this type of fire. With
regard to our own city, Edmonton, during 1920, experienced
one of the lowest loss records for a number of years, the
total fire loss amounting to $142,000, as in comparison with
the city of Calgary, with a similar population, the loss thei-e
incurred was $340,000. It must be borne in mind that the
fire hazard in Edmonton is greater than in Calgary, due to
the heating in the former city being entirely from coal, while
in Calgary natural gas is used, thus eliminating a large •
number of fires brought about by carelessness in handling-
ashes, stoves, etc.
I believe our low loss record in Edmonton is brought
about by the men of the fire department, they being heartily
in co-operation with their present chief, making a force of
men who are working to accomplish the same end, that is, to
keep down the fires more for pride in their department than"
for the fact that it is the duty for w'hich they are paid.
rkct, fruits, vegetables, etc
*An address before the Edmonton Committee, Western
Canada Fire Underwriters' Association.
May -11, l'J21 THE MONETARY TIMES
BANK OF MONTREAL
Statement of the Result of the Business of the Bank for the
Half-Year Ended 30th April, 1921
Balance of Profit ami Loss Account, liOth October, 1920 $ 1,251,850.03
Profits for the half-year ended 30th April, 1921, after deducting: charges of management, and mak-
ing full provision for all bad and doubtful debts 1,910,077.34
$ 3,161,927.37
Quarterly Dividend 3 per cent, paid 1st March, 1921 $ 660,000.00
Quarterly Dividend 3 per cent, payable 1st, June, 1921 660,000.00
$ 1,320,000.00
Reservation for Bank Premises 200.600.00
War Tax on Bank Note Circulation to 30th April, 1921 110.000.00
. 1,630,000.00
Balance of Profit and Loss carried forward $ 1,531,927.37
GENERAL STATEMENT, 30th APRIL, 1921
LIABILITIES
Capital Stock $ 22,000,000.00
Rest $ 22,000,000.00
Balance of Profits carried forward 1,531,927.37
$ 23,.531,927.37
T'ndaimed Dividends 10,218.99
Quarterly Dividend, pavable 1 st June, 1921 660,000.00
24,202,146.36
$ 46,202,146.36
Notes of the Bank in circulation ' $ 35,070,308.50
Deposits not bearing interest 105,754,451.30
Deposits bearing interest, including interest accrued to date of statement 310,846,487.25
Deposits made by and Balances due to other Banks in Canada 1,281,658.60
Balances due to Banks and Banking Correspondents elsewhere than in Canada 1,465,735.92
Bills Payable 1,294,776.79
455,713,418.36
.Acceptances under Letters of Credit . . 3,763,254.04
Liabilities not included in the foregoing 1,521,127.73
8507,199,946.49
ASSETS " " '
Cold and Silver coin current % 25,361,881.92
Dominion notes 45,609,449.75
Deposit in the Central Gold Reserves 15,200,000.00
Balances due bv Banks and Banking Correspondents elsewhere than in
Canada $ 9,456,054.74
Call and Short (not exceeding thirty days) Loans in Canada, on Bonds,
Debentures and Stocks 2,163,440.99
Call and Short (not exceeding thirty days) Loans in Great Britain and
LTnited States .' 77.946,749.87
89,566,245.60
Dominion and Provincial Government Securities not exceeding market value 20,443.903.76
Railway and other Bonds, Debentures and Stocks not exceeding market value .... 4,119,239.96
Canadian Municipal Securities, and British, Foreign and Colonial Public Securities
other than Canadian ,. 33,292,766.10
Notes of other Banks 3,095,178.00
Cheques on other Banks 15,688.903.71
$252,377,568.80
Current Loans and Discounts in Canada (less rebate of interest) $206,049,886.52
Loans to Cities, Towns, Municipalities and School Districts 21,738,554.27
Current Loans and Discounts elsewhere than in Canada (less rebate of interest) .... 15.988,753.52
Overdue debts, estimated loss provided for 524,577.68
244,301,771.99
Bank Premises at not more than cost (less amounts written off) 5,500,000.00
Liabilities of Customers under Letters of Credit (as per Contra) 3,763,254.04
Deposit with the Minister for the purposes of the Circulation Fund 1,038,166.60
Other Assets not included in the foi-egoing 219,185.06
S507.199.946.49
MXCENT MEREDITH. FREDERICK WILLIAMS-TAVLOR,
President. General-Manager.
THE MONETARY TIMES
Volume 66
IMPERIAL BANK OF CANADA
The Forty-sixth Annual General Meeting of the Imperial
Bank of Canada was held in pursuance of the terms of the
Charter at the Head Office in Toronto, on Wednesday. 25th
May, 1921, at 12 noon.
THE REPORT
The Directors have pleasure in presenting to the Share-
holders the Forty-sixth Annual Report and Balance Sheet
of the affairs of the Bank as on 30th April, 1921, together
with Statement of Profit and Loss Account, showing the
result of the operations for the year.
The balance at credit of Profit and Loss Account
brought forward from last year was .... $1,062,278.04
Net profits for the year, after deducting charges
of management, auditors' fees and interest
due depositors, and after making pro-
vision for bad and doubtful debts, and for
rebate on bills under discount, amounted to 1,287,061.56
Making a total at credit of Profit and Loss Ac-
count $2,349,339.60
This amount has been appropriated as follows: —
Dividends at the rate of 129'c per annum $ 840,000.00
Special bonus of l'?r for the year 70,000.00
Annual contribution to Officers' Pension and
Guarantee Funds 42,500.00
Special contribution to Pension Fund 100,000.00
Dominion Government Taxes 125,000.00
Balance of Account carried forward 1,171,839.60
$2,349,339.60
During the year Branches of the Bank have been opened
at the following points: —
IN ALBERTA— Big Valley, Dorenlee, Edberg, Leslie-
ville.
IN BRITISH COLUMBIA— Athalmer.
IN MANITOBA— Poplar Point, St. Vital.
IN ONTARIO— Toronto: College and Shaw Streets.
Runnymede and Annette Streets; Chute a Blondeau, Con-
naught Station, Englehart, Gormley, Hilton, Kapuskasing.
Kettleby, Monteith, Porquis Junction, Union, Virgil.
IN SASKATCHEWAN— .Carlton, Carmiehael, Primate,
Tompkins.
The following branches have been closed: —
IN ALBERTA— Bear Lake, Cherhill, Greencourt, Griffin
Creek, Gwynne, Westlock.
IN SASKATCHEWAN— Edgeley.
IN ONTARIO— Simpson Street, Fort William; Marsh-
ville, Verschoyle.
It is with deep regret that your Directors have to record
the death during the year of Sir William Gage, who had been
a valued member of the Board since 1910. The vacancy has
been filled by the appointment of Mr. George C. Heintz-
man, of Toronto, who has been a shareholder for many years
past.
The Head Office and Branches of the Bank, now number-
ing 218, have in accordance with the usual custom been care-
fully inspected during the year.
The auditors appointed by you have also made their
examinations as required by law, and their report and
certificate is appended to the Balance Sheet.
The Directors have pleasure in again testifying to the
satisfactory manner in which the officers of the Bank have
performed their respective duties.
A]] of which is respectfully submitted.
PELEG HOWLAND,
President.
LIABILITIES.
Notes of the Bank in circulation $ 12,470,991.00
Deposits not bearing interest. $17,327,386.06
Deposits bearing intei'est, in-
cluding interest accrued to
date of Statement 81,797,624.95
99.125,011.01
Balances due to other Banks in
Canada $ 586,102.68
Due to Banks and Banking Cor-
respondents in the United
Kingdom 15,381.49
Deposits by and Balances due
to Banks elsewhere than
in Canada and the United
Kingdom ' 129,570.54
Acceptances under Letters of
Credit (as per contra) . . 97,716.00
828,770.71
Total Liabilities to the public. $112,424,772.72
Capital Stock paid in 7,000,000.00
Reserve Fund Account $ 7,500,000.00
Dividend No. 123 (payable 1st
May, 1921), for three
months, at the rate of 12'7f
per annum 210,000.00
Bonus of I'Yc for the year, pay-
able May 1st, 1921 70,000.00
Balance of Profit and Loss Ac-
count carried forward . . . 1,171,839.60
8,951,839.60
$128,376,612.32
ASSETS.
Current Coin held by the Bank $ 1,753,129.01
Dominion Government Notes.. 10,870.316.25
$ 12,623,445.26
Deposit in the Central Gold Reserves 7,002,533.32
Deposit with the Minister for the purposes
of the Circulation Fund 384,409.15
Notes of other Banks 980,839.00
Cheques on other Banks 5,739,507.68
Balances due by other Banks in Canada .... 379,145.43
Due from Banks and Banking Correspondents
in the United Kingdom 455,701.83
Due from Banks and Banking Correspondents
elsewhere than in Canada and the LTnited
Kingdom 3,039,268.60
Dominion and Provincial Gov-
ernment Securities, not ex-
ceeding market value .... $ 6,091,724.70
Canaciian Municipal Securities
and British, Foreign and
and Colonial Public Securi-
ties other than Canadian 8,106,218.90
Railway and other Bonds, De-
bentures and Stocks, not
exceeding market value. . 409,179.83
Loans to Provincial Govei'n-
ments $ 942,000.00
Loans to Cities, Towns, Munici-
palities and School Dis-
tricts 8,826.626.64
Call and Short Loans (not ex-
ceeding thirty days) in
Canada on Bonds, Deben-
tures and Stocks 3,721,713.54
$ 30,604,850.27
14,607,123.43
13,490,340.18
58,702,318.88
May 27, 1921
THE MONETARY TIMES
Other Current Loans and Discounts in Can-
ada (less rebate of interest) 61,957,400.66
Liabilities of Customers under Letters of
Credit (as per contra) 97,716.00
Overdue Debts (estimated loss provided for) 717,675.38
Real Estate other than Bank Premises 502,626.68
Mortgages on Real Estate sold by the Bank. 410,276.98
Bank Premises, at not more than cost, less
amounts written off 5,385,904.56
Other Assets not included in the foregoing. . 602,698.18
$128,376,612.32
PELEG ROWLAND, President.
W. MOFFAT, General Manager.
AUDITORS' REPORT TO SHAREHOLDERS
We liave compared the above Balance Sheet with the
Books and Accounts at the Chief Office of Imperial Bank of
Canada, and with the certified returns received from its
Branches, and after checking the cash and verifying the se-
curities at the Chief Office and certain of the principal
Branches on thirtieth .^pril, 1921, we certify that in our
opinion such Balance Sheet exhibits a true an<l correct view
of the Bank's affairs according to the best of our informa-
tion, the explanations given to us and as shown by the books
of the Bank.
In addition to the examinations mentioned, the cash and
securities at the Chief Office and certain of the principal
Branches were checked and verified by us during the year
and found to be in accord with the books of the Bank.
All information and explanations required have been
given to us, and all transactions of the Bank which have
come under our notice have in our opinion been within the
powers of the Bank.
G. T. CLARKSON, F.C.A..
R. J. DILWORTH, F.C.A.,
of Clarkson, Gordon & Dilworth.
The customary motions were made and carried unani-
mously.
Mr. G. T. Clarkson, F.C.A., Toronto, and Mr. R. J. Dil-
worth, F.C.A., Toronto, were appointed Auditors of the Bank
for the ensuing year.
The Scrutineers appointed at the meeting reported the
following shareholders duly elected Directors for the ensuing
year:-— Peleg Howland, Wm. Hamilton Merritt, M.D., Sir
James Aikins, K.C., John Northwav. J. F. Michie, Sir James
Woods. E. Hay, Frank A. Rolph,' R. S. Waldie, George C.
Heintzman.
At a subsequent meeting of the Directors Mr. Peleg
Howland was re-elected President and Dr. W. Hamilton
Merritt Vice-president, for the ensuing year.
PELEG HOWLAXD, President.
W. MOFFAT. General Manager.
THE PRESIDENT'S ADDRESS
In rising to move the adoption of the Report, the Presi-
dent said in part: —
In moving the adoption of the Report which you have just
heard, I may say that I do so with much satisfaction, which
is shared by my fellow-directors, and which I hope will be
felt by yourselves. While the profits are less than they wei-e
for the previous year, they have been obtained with neces-
sarily increased expense and undei- — particularly during the
past four months — adverse business conditions, which have
caused a shrinkage in the number of transactions from the
multiplicity of which Banks draw a considerable portion of
their profits, in addition to which, through the reduction in
non-interest-bearing deposits and a very gratifying increase
in our savings, our money has cost us more.
As you will see. we have been able to pay the usual
dividend and a one per cent, bonus, provide the regular con-
tributions to the Guarantee and Pension Funds, make the
special contribution to the latter fund, authorized by you
last year, and carry forward an increased Profit and Loss
balance, it being our policy to continue to keep this large
during these times.
We are hopeful of results for the current year, though
it is only prudent to anticipate increased difficulties.
I have read with care the reports which our Branch
Managers send in on or about the first of May. They are,
generally speaking, optimistic of the future and indicate
considerable progress towards a lower and sounder basis of
business.
AGRICULTURAL OUTLOOK PROMISING.
In the East, where most of the manufacturing industries
are located, there is, of course, a much larger number of
unemployed, though, strange as it may appear, farm labor
is reported as more easily obtainable and at more reasonable
rates in the West than it is in this Pi-ovince. While seeding
is late, the conditions in the West are more favorable than
last year, and while I would gather that the total acreage of
grain will not be greater, there will be a larger area sown
to wheat and the crop will go in at a less cost and with better
cultivation than last year. There will be cheaper feed and
greater inducement to raise cattle and hogs, unless the ad-
verse United States legislation cuts out our market. There
is a good deal of wheat still in the farmers' hands, which was
held for higher prices, and which it is to be regretted was
not sold when harvested.
Industries are depressed and working part time, with a
few exceptions. Gold mining, for instance, in Northern On-
tario is favored by conditions, and there are indications of
some revival in leather and boots and shoes. Industrial
wages are still very high, though there have been reductions
in some cases, and efforts are being made to bring about
more, but they are being resisted by the workmen.
WAGES AND FREIGHT RATES.
With high wages, heavy taxation and pai't-time working,
goods cannot be produced cheaply in our factories, nor with
high freight rates and other costs can they be distributed
cheaply by either wholesaler or retailer.
The prices of farm and field products are low, in some
cases down to pre-war levels. Of course, we have a great
variety of natural products besides grain and live stock —
fruits, roots, tobacco, furs, fish, wood and minerals, all help
to our employment, but depend also to a degree on a foreign
market, which largely regulates prices.
If the prices of all these things are out of balance, as
they are to-day, with those of the goods which have to be
purchased with the proceeds of them, how can our Merchants
and Manufacturers hope for more than a moderate business?
How long will these conditions last? I wish I knew; I fear
the time will be long. That they will adjust themselves I
have no doubt; in my opinion (and I give it for whatever it
may be worth) in the process we will have short periods of
revival followed again by slumps (humps and hollows of
trade as it were) and probably not in all lines of business
at the same time.
INFLUENCE OF EUROPEAN CONDITIONS.
One of the greatest aids to a permanent improvement
would be a fully employed peaceful Europe, British as well
as Continental. Let us hope that this happy condition will
come about soon, and that we will find there a ready market
for our surplus products, giving in return a ready market
for what of theirs we can profitably consume. Would that
Governments would not retard this end by restrictions to the
free and natural movements of trade, which they all seem
now so prone to impose.
The problem of the unemployed with us is a serious one,
the percentage being very large indeed and not likely to
grow less in the immediate future; that means will be found,
in this land teeming with food, to provide for the deserving
who may be in want I am sure, but the numbers of those to
be sustained should not be added to by undesirable immigra-
tion. None should be permitted to enter who are not capable
of, and have not an immediate prospect of producing their
own sustenance, and have not the means on hand to maintain
themselves meanwhile.
The decision not to resume the Business Profits War Tax
was very welcome. Business hampered in so many ways
needs no brake just now. and on its volume a very large
proportion of the revenue of the country depends. It seems,
therefore, a pity that the tax on the incomes of businesses
could not have been abolished. It is payable, irrespective of
any return on invested capital, and has the same tendency to
28
THE MONETARY TIMES
Volume 66.
undermine the intcfrrity of the business community as the
Profits Tax, and its collection is subject to the same objec-
tionable inquisitorial methods.
I would venture, too, to urne the utmost care in public
and private expenditui-e, particularly that of a capital nature.
We will come out better in the Ions run if nothing of this
kind is spent that will not help towards production and bring
in a quick return.
CAUTIOUS OPTIMISM.
It is a time, I would say, for cautious optimism, if the
term may be used.
Gradually matters will adjust themselves and when they
do there will come to us an era of prosperity such as we have
never seen and in the benefits from which this Bank must
participate.
I am sure you will all share in the deep feeling of re-
gret caused by the death of Sir William Gage. He was a
notable citizen and a valuable director. His place has been
filled by the appointment of Mr. George C. Heintzman, whose
business ability, I am satisfied, will be if much benefit to the
Bank. He has long been connected with the institution as
a valued customer and as a shareholder.
I would like again to bear testimony to the zeal and de-
votion of the Management and Staff".
I beg to move the adoption of the Report.
The General Manager's Address
The General Manager said in part: —
There is a striking contrast between trade conditions
to-day and those of a year ago. When we met last spring
business was still brisk, and superficially appeared destined
to continue at a high level for some months, although now
that we are able to look back, it is evident that the turn
came last spring and not in September or October last, as
on the surface appeared to be the case. In other words,
manufacturers and merchants operated for several months
on back orders. Notwithstanding this condition, we trust that
the report which we are presenting to the shareholders will
be considered satisfactory.
DEPOSITS.
When we consider that our Government deposits have
been reduced approximately $7,000,000 during the year, we
feel well satisfied with the rfesults in this department of the
Bank's business — our total deposits as at April 30th, 1921,
amounted to $99,125,011, as compared to $97,784,217 in April,
1920, an increase of $1,340,794. Deposits of all Chartered
Banks for the eleven months ended March 31st (the latest
figures available) show a decrease of $128,930,722.
LARGE GAIN IN SAVINGS DEPOSITS.
It will not be safe to count on an increase in deposits
during the coming year, at least not in deposits payable on
demand. Business is slowing up, and all Banks have been
experiencing a steady decline in their demand deposits. On
the other hand, notice or interest bearing deposits so far
continue to show a satisfactoi-y gain, notwithstanding the
large number of wage-earners out of employment during the
past winter. The net increase in savings deposits of this
Bank for the year ended April 30th, 1921, amounted to
$9,120,945, or 12H.
There are two subdivisions in the financial statement of
a Chartered Bank, which, in the main, reflect the relationship
of the institution to the public: the one. savings deposits,
which, in a measure, indicate the confidence of the nublic;
the other, commercial loans, which represent the assistance
given by the Bank to the business of the country. The in-
crease in the former speaks for itself. We shall come to
Commerical Loans later.
Circulation during the year showed a substantial in-
crease, although not so large as recorded last year, due, no
doubt, to a general decline in business during the latter part
of the year and to the increase in the purchasing power of
the dollar. The maximum figure reached during the year
was $14,819,910 on 3rd July, 1920, but, as pointed out on
previous occasions, owing to the requirements of the Bank
Act regarding deposits with the Gold Reserve or payment
of interest on the excess circulation, this expanded note issue
has been of less benefit to the Bank than the figures would
indicate.
Our total obligations to the public stand at $112,424,772.
practically the same figures as a year ago.
STRONG CASH POSITION.
Turning to the other side of the balance sheet, you will
note our assets total $128,376,612, as compared with $128,-
274,168 a year ago. As an indication of the growth of the
Imperial Bank of Canada since its inception, we are including
in the report a sheet confined to a comparative statement
of Deposits, Loans, Assets, etc., which, I am sure, you will
find interesting and regard as being most en-ouraging. It
will show that our growth has been steady and satisfactory.
Notwithstanding our continued strong reserves throughout
the year, the balance sheet under review shows legal tender
notes, specie, deposit in the Central Gold Reserve, Call Loans
and balances due from other Banks totalling 3Q''r of our
liabilities to the public — a ci'editable showing — and if our
second reserves, consisting of bonds, securities, etc., are
added to the above figures, our reserves are shown to be 529'r.
PROFITS SATISFACTORY.
The profits for the year, we consider, leave no room for
criticism, and have been computed after a thorough exami-
nation of the assets of the Bank by our own officers and by
the auditors appointed by the shareholders, and after making
what we b?lieve to b? allowances f^r depreciation, possible
loss and contingencies, I' must confess that, with the curtail-
ment of business and increass in cost of operations. I am
afraid that the Banks are going to find it harder in the
future to keep their earnings at ths satisfactory figures
shown durine the inflated period of the past two or three
years. In a business such as carried on by this Bank, especi-
ally in times like the present, when values of all commodities
are falling, and when, no matter how careful we may be and
how well secured our advances may appear to be, th?re are
always possible shrinkages and losses to be met, I am sure
you will agree that the year we are entering is likely to be
at least difficult, but we are looking forward with confidence,
knowing that we have taken every possible precaution to
protect your interests. Our efforts will, for the present, be
directed to consolidating and improving the business which
we now possess rather than reaching out for new fields in
Canada or elsewhere.
INCREASED LOANS TO FARMERS.
This department of the Bank's business shows a healthy
expansion. A very considerable percentage of the increase
has been in advances to grain-growers and dealers, mixed
farmers and cattle men. In some districts in the West, where
crops have been light, there have been "carryovers," but on
the whole advances to agriculturists, although more trouble-
some, are, when carefully watched, amongst the safest loans
in the Bank. It is true they require to be watched, as a
number of farmers, like their neighbors in the towns and
cities, are over-optimistic and attempt to handle more than
their capital warrants, and in the spring base their borrow-
ings on a twenty-five bushel yield per acre, only to find that
their crop when threshed measures ten or less. These ac-
counts, however, are in the minority, and, while a certain
percentage fa'l to clean up yearly, they are, as a rule, on a
well-secured basis, and are ultimately collected. Our Pre-
mises Account is still growing, a considerable portion of the
increase being due to the erection of a nu'iiber of sniiller
buildings at points where it was necessary to properly house
our growing business, the only exceptions being a very fine
building at Windsor, which we consider a credit to the Bank
and to the city in which it has been erected, and the i:uilding
occupied by our Hastings and Abbott Streets office n Van-
couver which w? heretofore occupied as tenants. While
prices of building have been very much in excess of rormal,
we believe that we have received value for our expenditure.
Our Shareholders have increased during the year from
2,055 as on April 30th, 1920, to 2,115 as on date of this
report, or an average holding of 33 shares. We are always
pleased to welcome new shareholders as well as new cus-
tomers, and we trust that during the coming year we may
have the pleasure of recording a further addition. As I
stated last year, the Bank belongs to its shareholders, and
we trust that each will do what he can to build up the busi-
ness of his own institution.
There has not been the same activity in the opening of
new branches by the Canadian Banks during the past twelve
months as during the two preceding years, due largely, I
think, to the fear of business depression, but also on account
of high operating expenses. "While we, ourselves, have opened
May 27, 1921
THE MONETARY TIMES
28a
eighteen offices and closed seven during tlie fiscal year ended
April 30th, 1921, we opened only at points where we saw -a
reasonable prospect of developing successful branches or as
a protection to established offices. For the present we wish
to consolidate our position rather than extend.
Our staff now numbers 1,345, of whom 413 are young-
ladies. All are entitled to your thanks for theil- work and
loyalty. We are most anxious to build up the "esprit de
corps" of the staff, and believe we have succeeded.
I would like to stop here, as the President has fully
covered the gronud, but in view of existing conditions, pos-
sibly something more may be expected from me at this time.
LIGHTENING THE PUBLIC DEBT.
Through our huge war expenses Canada finds itself
bui'dened with a debt, which for a country of less than nine
million people would, in times past, have been considered un-
bearable. The Finance Minister's efforts are of necessity
,directed to the increase of revenue to meet this condition of
affairs. I think most of us would like to see an effort made
to lighten his burden by a drastic reduction in expenditure.
There are probably only two ways in which this burden of
debt can be lightened:
1. Increasing by immigration of desirable settlers the
numbers carrying the burden.
2. Reduction of the burden by such Government
economies as will enable us to reduce our debt to a more
reasonable figure.
■ Both will require time to show results, but if the two
factors work together the time required for Canada to get
back to normal will be appreciably shortened. Immigrants
with means, however, will not be attracted to a country
burdened with debt, and debts cannot be paid by inflation
of currency or by Government or Municipal borrowings and
expenditure. Our position can only be better by either
cutting down Government expenses or by increasing the
number of tax payers or by a combination of both. Also, we
must work and work hard in order to produce not only food
and clothing for ourselves but al.so to be in a position to sell
to other nations at a profit in oi'der to provide necessaries
w^hich cannot be grown or manufactured at home.
COST OF LIVING.
To accomplish this, the price of goods must be made at-
tractive to the purchaser, or in other words, we must get
the price of goods and the cost of living down to a more
normal level. This may mean lower pay for all workers,
still if the mai-gin over the cost of living is the same or
better, such a situation should be welcomed by all. Canada
is slowly getting back to a pre-war basis, but Government
expenditure is still too high, but as we all know the process
of deflation is far from pleasant and all will have to be
patient. If we are, it should not take many years to bring-
about a better state of affairs. Each one of us must make
his of her sacrifice, if necessary, in order that the business
of the country may once more reach a solid basis and that
w-e may attain the economic position which will be ours if we
do our part faithfully and well.
THE BANKS AND INDUSTRY.
There have been some criticisms directed against the
methods pursued by the Canadian Banks in their handling
of the financial affairs of the country during the past trying-
period, and some of them due largely to staff difficulties,
particularly %vhile the war was on, may have a basis of
truth, but upon the whole I think few human institutions
have more cause for self-congratulation than the Canadian
Banks. I can, of course, only speak intimately regarding
the Imperial Bank, but I have no doubt others can repeat the
same story. If you consider the situation carefully you will
see that a Bank's assistance starts at the beginning of every
enterprise — farmers obtain advances to prepai'e their soil,
to buy seed, to plant, reap, thresh, and market their grain.
The Banks also held manufacturers to purchase raw. material,
convert it into saleable goods, and to market the finished
product — so on all through all lines of business. The Banks
of the Country may, therefore, be looked upon as essential
partners in the development of the Dominion, and we hope
to see the Imperial Bank doing its part in the future as it has
in the past, knowing that our welfare depends 'upon the
success of our customers, be they farmers, manufacturers,
merchants or wage earnei-s. 573
THE
London & Lancashire
INSURANCE COMPANY LTD.
EXTRACTS FROM STATEMENT
LONDON
AND
LANCASHIRE
INSURAKGEGOHIWir.
for the Year 1920
Transcribed at $5.00 to the £ StarMng
Fire Premiuins .-----.
Accident Premiums ------
Marine Premiums --.--.
Total Premiums - - - - .
Interest . . - -
Taxes Paid and Accrued
TOTAL ASSETS ...
ALFRED WRIGHT. Manager and Chief Agent for Canada
A. E. BLOGG. Secretary,
14 Richmond Street East, TORONTO
$18,341,247
8,733,362
13,347,578
$40,422,187
$1,576,197
$2,868,465
$115,784,320
MONTREAL
Colin E. Sword, Manager
M6 Notre Dame St. West
VANCOUVER
Wdliam Thompson. Mana
London Build, ne
WINNIPEG
A. W. Blake, Branch Manager
290 Garry Street
563
THE MONETARY TIMES
Volume 66.
INTEKXATIONAL TRADE SITUATION IN CANADA
(Continued from page 7)
Canada had been five years in the war and her imports
had been greatly restricted. When peace came at the end
of 1918, people felt free to buy goods that they had long
wanted or now required in order to develop their natural in-
dustries. Imports at once began to show a considerable ex-
pansion in certain lines of staples and luxuries, accompanied
by a steady decline in purchases of raw materials for war
products The total figures do not indicate these changes, but
an analysis does. Imports of textile products, for example,
grew from $154,000,000 in 1917-1918 to $234,000,000 in 1919-
1920. Metals and their products, non-metallic minerals and
their products, showed a decline. Vegetable products made
a decided increase from $146,000,000 to $237,000,000. The
United States, being the one country with unlimited goods for
export, got the benefit of this increased demand for manu-
factured goods.
The latest twelve-month returns available for Canada's
purchases by countries show some remarkable changes in the
post-war period: —
From the 1918 1920
United States 739,459,000 919,367,000
United Kingdom 70,569,000 217,228,000
Cuba 1,790,000 35,173,000
France 4,118,000 19,840,000
British East Indies 16,775,000 19,607,000
British West Indies 7,639,000 16,839,000
Belgium 7,472 3,343,000
Netherlands 689,912 3,462,000
If this tendency continues, as it is reasonable to assume
it will, the United States will lose its predominant position
in Canadian imports, and instead of supplying 80 per cent,
of Canadian purchases, it will return to its normal position
of about 60 per cent. The United Kingdom, France, Belgium,
Holland and Italy are sure to regain much of their trade with
Canada which was lost during the war.
During the war period Canada, for the first time in her
history, piled up an excess of exports over imports. For
the five years ending March 31, 1920, that favorable balance
of trade "amounted to $1,718,586,000. During 1920, however,
imports rose faster than exports, and Canada finished the year
with a small unfavorable balance.
Canada's Future Exports
Canada has become a great foreign trader. Its imports
per capita are nearly three times as large as those of the
United States, while its exports are nearly double per capita.
The explanation of this would require much space to discuss.
Its enormous natural i-esources are comparatively easy of ac-
cess, though its territories are broad. It has the greatest
railway mileage in the world for its population. As has been
indicated, its shipping is proportionately large and its people
have been accustomed through half a century to foreign trad-
ing. Because it has much to sell, because it has the machin-
ery for selling those products in the world's markets, and
because its people are frugal and thrifty, Canada will also
be a great purchaser of foreign goods. The Canadians can
not equal the British stock from which they sprang in mari-
time and commercial skill, but it is questionable if they are
excelled in this respect by any other nation.
An analysis of what Canada exports will deepen convic-
tion on this point. The variety of goods sent out to the world
is distinctly impressive. A few figures of the exports for the
twelve months ending September, 1920, may be quoted in
evidence : —
WTieat $182,000,000
Paper 89,000,000
Iron and Steel 62,000,000
Flour 61,000,000
Lumber, etc 124,000,000
Pulp 73,000,000
Animals, living 42,000,000
Fish 40,000,000
Bacon and Ham 42,000,000
Butter 18,000,000
Cheese 40,000,000
Coal 18,000,000
Furs 18.000,000
Textiles 19,000,000
Vegetables 16,000,000
Automobiles 18,000,000
Canada not only sells food from the land, food from the
water, furs and timber from the forest, minerals from her
mines, but she also exports manufactured goods in the fox-m
of flour, bacon, paper and textiles which have already achieved
some reputation. Quite recently her export of manufactui'es
passed the half billion mark. What she most requires is a
more scientific organization of her selling machinery, and an
accumulation of capital which will enable her to extend larger
credits to foreign purchasers.
Her Future Imports
In the future Canada's import trade will witness a growth
proportionate to the growth of the country's industries. There
are certain commodities which Canada can not produce, not-
ably in the case of cotton and certain other raw materials,
and for the supply of which Canada is wholly or in part
dependent upon foreign countries. These commodities will
continue to be imported in increasing volume because Canada's
development as a manufacturing country will necessitatS a
larger importation of raw materials. Although Canada has
vast resources of coal, iron and steel, these have not yet been
fully developed; Canada therefore imports these commodities
in large quantities; but the tendency in the future will be for
these imports to decrease gradually. Canada is primarily an
agricultural country, yet there is a steady increase in the im-
portation of certain produce and foodstufl's which can not be
grown in Canada. Climatic conditions and the severity of the
winters also render certain kinds of production in Canada im-
possible for a period of a year, and therefore make the im-
portation of particular foodstuffs necessary.
Canada buys beans from the United States to the value
of $700,000; com from the same country costing $10,000,000;
rice from British Guiana and Japan to the value of $2,000,000;
sago and tapioca from the British East Indies; sweet biscuits
from Great Britain; cereal foods in packages from the United
.States and macaroni and vermicilli from various countries.
With the greater prosperity of the people the demand
for certain kinds of manufactures, not produced in Canada,
which may be classed as "luxuries" or "non-essential" com-
modities is likely to increase.
Canada's total import trade for the twelve montlis ending
September, 1920, was $1,325,767,940. The value of Canada's
export trade for the same period was $1,208,919,000.
Canada has still much to learn about foreign trade. The
pi-oposed establishment of an Empire bank to stabilize ex-
change between the United Kingdom and the British Domin-
ions would undoubtedly be helpful. The customs preference
now being given by the United Kingdom on motor cars, musi-
cal instruments, wines and a few other produces from the
overseas Dominions may be extended in the near future.
Other preferential arrangements may develop. In markets
which are not British, Canada must meet the competition of
the world. This requires special machinery in the nature of
exporting corporations, steamship facilities and banking ar-
rangements.
Much of Canada's exports is now sold through New York
exporting houses, but Canadian export companies are grow-
ing in number and strength. Two of the leading Canadian
chartered banks have agencies in Cuba, British West Indies,
Mexico and South America. The number of steamers engag-
ed in foreign trade is increasing. As all these features ex-
pand Canada will probably maintain the record which she has
already made as a reliable and energetic foreign trader.
The offices in Toronto of the Casualty Insurance Bureau,
formerly of Lumsden Building, and of the Canadian Automo-
bile Underwriters' Association, formerly at 8 Colhome St.,
are now at 26-28 Adelaide St. West.
May 27, 1921
THE MONETARY TIMES
DIVIDENDS AND NOTICES
DEBENTURES FOR SALE
THE CANADIAN BANK OF COMMERCE
TOWN OF LA TUQUE
Dividend No. 137
Notice is hereby given that a dividend of Three per cent,
upon the capital stock of this Bank, being at the rate of
twelve per cent, per annum, has been declared for the quarter
ending 31st May next, and that the same will be payable at
the Bank and its Branches, on and after Wednesday, 1st
June, 1921. The transfer books of the Bank will be closed
from the 17th May to 31st May next, both days inclusive.
By Order of the Board,
JOHN AIRD,
General Manager.
Toronto, 22nd April, 1921. 545
IMPERIAL OIL, LIMITED
DIVIDEND
Notice is hereby given that a Dividend of seventy-five
cents per share in Canadian funds has been declared by the
Directors of Imperial Oil, Limited, and that the same will
be payable in respect of shares specified in any Share
Warrant of the Company within three days after the Coupon
Serial Number Eight of such Share Warrant has been pre-
sented and delivered to: The Royal Bank of Canada, Toronto,
Ontario, or at the oHice of Imperial Oil Limited, 56 Church
Street, Toronto, Ontario; such pi-esentation and delivery to
be made, on or after the first day of June, 1921.
Payment to Shareholders of record and fully paid up at
the close of business on the twenty-fifth day of May, 1921,
(and whose shares are represented by Share Certificates),
will be made on or after the first day of June, 1921.
The books of the Company for the transfer of shares
will be closed from the close of business on the 25th day of
May, 1921, to the close of business on the 1st day of June,
1921.
By Order of the Board.
T. C. McCOBB,
Secretary.
56 Church Street, Toronto, Ontario,
May 25th, 1921. 572
THE MERCHANTS BANK OF CANADA
ANNUAL MEETING
The -Ainnual General Meeting of Shareholders for the
election of Dii'ectors and other general business of the Bank,
will be held at the Banking House, in the City of Montreal,
on Wednesday, the first day of June next. Chair will be
taken at 12 o'clock, noon.
By Order of the Board.
D. C. MACAROW,
General Manager.
Montreal, 26th April, 1921. 553
SETTLEMENT OF MORTGAGE MONEY
The Ontario Courts on May 17 reserved judgment in the
suit of the American Chicle Co., of New York, against the
Somerville Paper Box Co., of London, Ontario, for payment
of $53,098, said to be due on a mortgage. The American
Chicle Co. demanded pE'yment in gold of the debt, which the
Somerville Co. offered in Canadian currency. The only dis-
pute is the manner in which the debt will be paid. At the
present the export of gold is prohibited until July, 1922.
Province of Quebec
Public notice is hereby given that sealed tenders will be
received by the municipal council of the towrn of La Tuque
until the sixth of June, 1921, at 5 o'clock p.m., at the office
of the undersigned, D.-E. Hardy, manager of the town of
La Tuque, for the purchase of bonds of the said town amount-
ing to $300,000.00, $50,000.00 of which are issued under by-
law No. 109, and the remaining $250,000.00 under by-law
No. 110.
These bonds will be dated the 1st November, 1920, and
will be redeemable in 5 years from their date for all those
which according to the maturity table contained in the by-
law, mature after that date;
They will bear interest at the rate of six per centum,
payable semi-annually, the first of November and the first of
May of every yeai-.
The bonds issued under by-law No. 109, are in two
series, 95 denominations of $100, and 81 denominations of
$500; those issued under by-law No. 110, are made up of 110
denominations of $100 and 478 denominations of $500.
These bonds are payable at La Banque Nationale, at
Quebec, Montreal and La Tuque;
Every tender must be accompanied by an accepted cheque
payable to the order of the town of La Tuque, representing
one per cent, of the amount of the loan;
The said tenders will be considered at a sitting of the
council which will be held on the 6th of June, 1921, at 8
o'clock p.m.
D.-E. HARDY, 575
Manager.
TENDERS FOR BONDS
The City of St. Lambert requires tenders for sale of
$.500,000.00 Bonds, each of $1,000.00 denomination, issued ac-
cording to By-Law 121, expiring May 1st, 1951, with interest
coupons attached, bearing interest at 6 per cent., payable
half-yearly, May first and November first, at the Bank of
Hochclaga, St. Lambert or Montreal, or at the Canadian
Bank of Commerce, Toronto.
Tenders will be taken into consideration at the regular
meeting of City Council Monday, June 6th, 1921, at eight
o'clock in the evening, at the City Hall.
Every tender must be under sealed envelope, and de-
livered at the City Hall up to 8 p.m. June 6th, date of
meeting.
The Council shall not be obliged to accept any tender.
JAMES R. BEATTY,
Secretary-Treasurer.
City Hall. St. Lambert, May 18th, 1921. 574
Condensed Advertisements
^' Positions Wanud ■■ ;v. per word ; nil other condenscil .idvertisements.
5c. per word. .Minimum charge for any condensed advertisement. 65c.
per insertion. All condensed advertisements must conform to usual
style. Condensed advertisements, on account of the very low rates
charged for them, are payable in advance; ,50 per cent extra if charged.
PARTNERSHIP.— A large Toronto Investment House
(private corporation), comprised of prominent financial men,
will admit another partner on equal basis with present mem-
bers. Must be experienced financially, of mature age, vrith
pleasing personality, in a position to actively associate and
assume vacancy on Boa.rd. Business with a net of $60,000
in hand this year. Partnership under $5,000 (reasonable
terms) not considered. Replies confidential. Banker, Box
411, Monetary Times, Toronto.
THE MONETARY TIMES
Volumi 6t
THK BUITISH COIA JIIJIA FIRE UNDERWRITERS-
ASSOCIATION*
Description of the Organization and Its Worl< — Some Recent
ClianRes — How a Kire Insurance Rate is Made, and AVhy
Premiums Are High in British Columbia Cities
Bv J. L. Noble
Secretary, B.C. Fire Underwriters^' Association
THE British Columbia Fire Underwriters' Association, like
all other organizations of a similar nature, has been
established by the fire companies. Not for the purpose of
increasing premium rates, thereby adding to the burdens of
the insured, or as "evidencing a compact or trust" as is
sometimes unjustly and senselessly declared; but for the pur-
pose of estimating fair and equitable rates for fire insurance
and to furnish municipalities, owners of property, insurance
companies ov agents, with information and advice as to
measures to be adopted for the reduction of the fire hazard
in this province, and lessening the cost of insurance thereon.
A great deal of time is occupied by the public, and some-
times by insurance agents, in unreasonable criticism of this
enterprise and in the fighting of an imaginary "Trust" and
"Combination." Were half the time employed in seeking the
advice of rating bureaus and benefiting by their scientific
knowledge in the construction of buildings and the installa-
tion of protective devices, the "burden of insurance taxation"
would be reduced by a very gratifying percentage and a sav-
ing of the people's money.
Work of the Association
The work and objects of the Association are very clearly
defined in the Constitution and By-laws. The operations are
quite broad in scope and diversified. The chief object in
the fixing of equitable fire insurance rates to hazards and
the promotion of the best interests of the public generally
in all matters relating to fire insurance.
Rates are based on the experience of its members and
various departments are maintained for the inspection of
buildings, waterworks systems, fire departments and appli-
ances, electrical and other fire hazards. Fire prevention has
a prominent place in the functions of the bureau in the en-
couragement of improved building construction and protective
features. By the operation of this organization, consider-
able reduction of expense in transacting the bureau of the
companies is brought about through co-operation in survey
and inspection work, also in quite a number of other ways,
all tending to reduce the cost of fire insurance and to secure
a reasonable profit for members. Another important duty
which has recently been added in the making and revising of
insurance plans, by maintaining a stamping department,
policy wordings and covering documents are regulated, there-
by obtaining uniform rates and forms. The Association en-
deavors to prevent rebating and other undesirable practices.
To properly carry on the work of the office, certain com-
mittees and departments are maintained. British Columbia
is unique on the American Continent, because of the fact that
business is reported to so many centres outside of the pro-
vince, for a particular jurisdiction. In most of the Asso-
ciations the control of the companies' business is at the place
where the rating bureau has its office, but in British Columbia
business is reported by certain agents to Winnipeg, Toronto,
Montreal, London, Eng., New Yoi'k, Hartford, Springfield,
Chicago, San Francisco, and other centres.
The Advisory Committees
It is necessary that all companies, who are members of
the Board, have a voice in the affairs of that organization,
and it has been found necessary to maintain what are known
as Advisory Committees. The companies whose business is
reported to Toronto and Montreal have representation there.
Those whose business is reported to San Francisco have a
similar committee at that place, and those whose business is
*Paper read before the British Columbia Fire Agents'
Convention.
rejiorted elsewhere have the liberty of being represented on
the British Columbia wing. Out of a total of 116 active
members, 68 have representation on the local committee.
You will readily appreciate that it is impossible for the
Association, as a whole, to have a common meeting place, so
that with the merging of the Vancouver Island and the Main-
land Associations, head offices were desirous that a centi'al
committee should have power to deal with practically all
iTiatters affecting their interests, and each of 'the various
Advisory Committees elect, to this committee, which is known
as the Administration Committee, four representatives,
making a committee of twelve, who act on behalf of all the
companies. This committee acts in the same capacity as a
board of directors in an insurance company, and their chief
duties consist in formulating i-ules and assisting the Sec-
retary to carry on the work of the Association.
In the office itself there are the following departments:
Executive, Rating, Stamping or Examining, Engineering,
Electrical and Plan. A printing office is maintained to fa-
cilitate the work, and a branch office at Victoria having juris-
diction over Vancouver Island.
W'hat Various Departments Do
We might now consider some of the phases of the work
carried on in some of the various departments. The rating
department could be consiedred as the most important one
that is maintained. If the various companies were not mem-
bers of a board, it would be necessary to have in their em-
ploy many persons, whose duty it would be to personally
inspect every risk the company was offered before a rate
could be determined, otherwise it would be necessary for the
various agents to do this work for them. Wlien you con-
sider that it takes years of experience and continuous study
to ascertain the hazards and intelligently determine a com-
mensurate price which should be paid, it will be appreciated
that it would be practically impossible to couple this duty
with those the agents have at present.
In the study of any branch of insurance, and especially
that of rate making, so many elements are found to demand
attention, and so many factors force themselves into promin-
ence, that it is difficult, in a short space of time, to really
give a clear and concise statement as to how rates are actu-
ally made. It is at this point that difficulty is encountered
in the clear exposition or extent of the intricate task of a
rate maker and the full function of a rating bureau.
It is a small part of the fact to state that there are more
than 1.50 features of construction in a single risk, which must
be fully analyzed and measured, irrespective of over 75 fea-
tures of city government and environment, more than 100
of fire appliances, to say nothing of 2,000 and more possible
hazards of occupancy, exposure and various means of heating
and illuminating, each modified or increased by the use or
non-use of automatic protective devices known to modern fire
prevention.
The Rate Maker
The rate maker must have good intelligence and special
education along the lines of such items as building construc-
tion, chemistry, electricity, hydraulics, and other sciences,
coupled with an experience in the field of a good many years,
before he is considered a man capable of inspecting and rat-
ing the many different buildings and factories which are in
existence to-day. In addition to all this, a knowledge of the
history and inherent qualities of every piece of fabric enter-
ing the manufacturing channels of trade and commerce and
the countless varieties of material used in modern construc-
tion, is essential.
Elaborate maps of various cities must be made. Test
records kept of the capacity of water mains and hydrants
and their various locations. Ordinances representing build-
ing and fire regulations must be studied. The efficiency or
weakness of fire departments must be known, and number-
less other items, each of greater or less importance, tabu-
lated and persistently watched in order that the problem of
measuring the fire hazard may be as nearly reduced to a
science as the nature of the work will allow. In a word, the
task of correctly measuring the fire hazard in order to fix a
(Contivved on page S2)
May 27, 1921
THE MONETARY TIMES
INSURANCE LICENSES AND AGENCY NOTES
License has been issued to the Merchants Marine Insur-
ance Co., Ltd., to transact in British Columbia the business
of fire and automobile insurance. The head office for the
province will be at Vancouver, and J. A. Young is the
attorney for the company.
The .American Equitable .Assurance Co. of New Y'ork
has been registered to transact in British Columbia the busi-
ness of fire insurance. C. G. Hobson is attorney for the
company, and the head office for the province is at Vancouver.
This company has acquired the rights and property of the
.American Equitable .\ssurance Co. of New York, which was
consolidated by agreement dated the 9th day of December,
1920, with the Manufacturers' Insurance Co. of America into
a new corporation under the above name. The former com-
pany of the same name was previously licensed, but has now
ceased to carry on business.
A new district has been created in Canada by the Metro-
politan Life Insurance Co., New York, known as Vancouver
South. This necessitated a new manager, and to this posi-
tion M. J. Sweeney, deputy manager for Vancouver, B.C., has
been promoted. The Vancouver District has lost James T.
Fahay as manager, and L. D. Linger, deputy manager, Tor-
onto East, Ont., has been appointed to fill that place.
Percy Halpenny has been appointed to the inspectorship
of the Dominion Life for the Eastern Counties, with head-
quarters at Westboro, Ont. Other appointments announced
by the company are: I. P. McNabb, M.A., has been promoted
to the position of manager for Central Ontario, with head-
quarters in Peterborough. Robert Maclnnes has been pro-
moted to the position of manager for Northern Saskatchewan,
with headquarters at Saskatoon. Fred. Graham, Moose Jaw,
has been appointed branch manager of the new agency at
Swift Current.
G. N. Clendening was) recently appointed district man-
ager of ' the National Life Assurance Co. at Niagara Falls,
Ont. He is a prominent citizen, but has not hitherto been
in the life insurance business. '
Seitz and McEvenue, Ltd., insurance brokers, 26 Adelaide
St. W., Toronto, have disposed of their business to Armour,
Bell, Boswell and Cronyn, Ltd.,' whose offices are at 27 Wel-
lington St. E., Toronto.
H. E. Bligh, a well-known fire insurance man in the west,
has been appointed inspector of the Pacific Coast Fire In-
surance Co., the Century Insurance Co., and the Vulcan Fire
Insurance Co., with headquarters at Vancouver, B.C. Mr.
Bligh formerly held a similar position with another company
in .A.lberta.
A local branch of the Life Underwriters' Association of
Canada has been formed at Owen Sound, Ont. S. J. N.
Glazier, of the North -American Life Assurance Co., has
been chosen first president.
Counsell and Macphec, the well-known Winnipeg insur-
ance firm, will represent the Motor L^nion Insurance Co.,
Ltd., in Manitoba. The activities of the company at the
present will be confined to fire, automobile and liability in-
surance.
The Sun Life .Assurance Co. of Canada announces the
appointment of H. A. H. Baker as assistant manager for the
Manitoba Division, with offices in the Lindsay Building,
Winnipeg. Mr. Baker has had a successful executive experi-
ence, first with the Equitable Life Assurance Society, prior
to their withdrawal of active operations in Canada, and more
recently as joint manager for the city of Winnipeg, with the
Sun Life of Canada. He now assumes more responsible
duties in the larger field of operations by becoming assist-
ant to D. J. Scott in the management of the company's
interests in the province of Manitoba.
J. C. G. .Armytage has taken over the management for
the city of Winnipeg of the Confederation Life Association.
In doing so he has accompanying him the field force of the
Equitable Life, which withdrew from Canada in December,
1920. For the last few months he has been branch manager
in the city of Winnipeg for the Sun Life.
VANCOUVER
BRITISH COLUMBIA
— a Vacation Trip that promises Rest,
Recreation and an insight into the
greatness of Western Canada which
will be a revelation to you.
You see the great Western prairies —
cross the magnificent Canadian Rockies
— see (or yourself our great West.
ideal Climate — No
extreme heat — Nights
always cool.
Special Round Trip
rates effective Jane I
In Vancouver you
are in a Paradise of
Nature surrounded
by the wonderful na-
tural attractions for
which British Colum-
bia is famous — a new
trip every day of
your stay.
WRITE FOR ILLUS-
TRATED VACATION
FOLDER.
Sent tree on request to Van-
couver Publicity Bureau (J. R.
Davison. Mgr.l Suite 50. 330
Seymour St.. Vancouver. B.C.
THE EMPLOYERS'
LIABILITY ASSURANCE CORPORATION
OF LONDON, ENG. LIMITED
ISSUES
Personal .Accident Sickness
Employers' Liability Automobile
Workmen's Compensation Fidelity Guarantee
and Fire Insurance Policies
C. W. I. WOODLAND
General Manager for Canada and Newfoundland
Lewis Htiilding. yOHN JKN'KINS, Temple Bldg.
MONTRFAL I'ire Manager TORONTO
COB.VLT ORE SHIPMENTS
The following are the shipments of ore from Cobalt
Station for the week ended May 13th: —
O'Brien Mine, 128,970; Coniagas Mine, 162,396; total,
291,366.
The following are the shipments of ore from Cobalt
Station for the week ended May 20th: —
O'Brien Mine, 74,258. The total since January 1st is
2,807,296 poun.!s, or 1,403.6 tons.
On May 10 the Toronto courts dismissed the action of
Robert L. Brock, trading under the name of the Globe Cloth-
ing Co., against the United States Fidelity and Guaranty Co.,
for compensation under a burglary policy. The lack of pro-
per bookkeeping to show the exact amount of loss sustained
and the fact that plaintiff had not told the insuring coni-
pan.v of a previous robbery were the grounds upon which the
dismissal of the action was based.
30 T H E M O N E T A R Y T I M E S Volume 66.
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I ^_ THE =^ I
NORTH BRITISH AND
MERCANTILE INSURANCE
COMPANY, LIMITED
FIRE LIFE ANNUITY
Established 1809 Entered Canada 1862
Total Assets Exceed - . - - $140,000,000
Canadian Investments Exceed ... 5,000,000
Investments West of the Great Lakes Exceed 1,000,000
FIRE INSURANCE Lowest rates of premium are charged, corresponding with the
nature of the risk. Settlements are promptly made.
LIFE INSURANCE Policies are issued for all classes of Life Insurance business at
the best possible rates and terms.
All those considering taking out a Life Policy should write and
obtain a Leaflet from the Company before they do business.
ANNUITIES - - The Company has issued new Annuity Rates. These are of
the most favourable nature, and should be obtained by all
desirous of purchasing an Annuity.
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HEAD OFFICE
SO St. Francois Xavier Street, MONTREAL, P.Q.
Randall Davidson, Fire Manager
H. N. Boyd, Life Manager
§ North Western Branch |
I 909-911 Paris Building, WINNIPEG, Man. |
I C. A. Richardson, Branch Maneiger |
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May 27, 1921 T H E M O N E T A R Y T I M E S 31
Siiiiiiiiiiuiiiiiiiiiiiiiiiiiiiiiniiiimiiiiiiiiiiiiiiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiw
THE
OCCIDENTAL FIRE INSURANCE
COMPANY
Under the control of the North British and Mercantile Insurance Company
HEAD OFFICE
909-911 Paris Building, Winnipeg
President, Randall Davidson Vice-President & Secretary, C. A. Richardson
DIRECTORS
S. E. Richards W. A. T. Sweatman Robt. Campbell
Dec. 31st, 1914 Dec. 31st, 1920
Capital Subscribed - $500,000.00 $500,000.00
" Paid Up - - $174,762.70 $200,000.00
Surplus on Policy-Holders'
Account - - - $250,856.35 $508,516.93
TOTAL ASSETS - - $359,025.09 $828,316.45
All Investments are in Canadian Securities
FULL DEPOSIT WITH DOMINION GOVERNMENT
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32
THE .MONETARY TIMES
Volume Uti
THE HKITISH COLUMBIA FIRE UNDEKWKITKKS'
ASSOCIATION
(Continued from page ,>iSD)
just premium rate, is so great in its proportions as to tax
the capacity of the ordinary intellect, and thus prevent a
full appreciation of the technical training and endless work
)'e<iuired in the solution of this all-embracing problem.
A rating officer, in carrying on his duties, which are
almost of a public-spirited mission, has no room whatever
in his work for selfish or personal interests to participate,
while discrimination or favoritism, even if the motive existed,
is something of a great rarity.
To those who are fully acquainted with all of the facts,
they know that a rating bureau stands as a target between
two opposing forces. The seller of insurance on one hand,
desiring an adequate and just rate for his indemnity, and
the purchaser on the other hand, demanding a lower charge
for the protection. Despite contending factions, this office
endeavors to woi'k out their ever-pressing duty of carefully
and intelligently measuring the hazai'd in order to determine
the commensurate rate, and thus fulfil one of their chief
objects, that of placing the cost of insurance on a just and
equitable basis.
How the Rate is Made
It might be interesting to follow the operations in the
making of a rate, we will say in the City of Vancouver.
Before the building itself is considered, the water works de-
partment in this office makes an exhaustive test and report
upon the city's fire protective facilities. This report covers
the city's entire water system, including the origin of supply,
storage capacity, lay-out of the mains, number and proxim-
ity of hydrants, flow and pressure of water, size of the mains,
spacing of the gate valves, and every other feature having
the slightest influence whatever bearing on the subject. The
status of the fire department naturally is of much importance.
The qualifications and experience of the chief must be known,
also what the personnel and discipline of his subordinates
is, and the nature of their equipment; the apparatus of the
department must be well known and tested.
The engineer must thoroughly inspect the police and tele-
graph alarm system of the city and learn the full measure
of their reliability; also a general electrical inspection is
necessary, the need of which arises from the fact that the
wiring in many buildings, especially the older ones, is usually
of an inferior and more hazardous nature, the science of elec-
trical wiring having been in its infancy when the earlier
types of buildings were erected. Another matter of utmost
importance is that the bureau must keep thoroughly acquaint-
ed with municipal ordinances, and should know whether or
not strict adherence to their provisions is required. In this
is included all laws relating to construction, building of chim-
neys, heating plants and other features too numerous to men-
tion. Topographical and climatic conditions of the city, you
will realize, is another matter of importance. A city built
on a level is easily seen to be more ideal in its topographical
conditions, allowing of wider, streets and alleys and more
symmetrical structures, thus facilitating the probability of
more correctly estimating and restricting the conflagration
zone.
From all the data above mentioned, the key rate or basis
rate is determined for the use of the entire city. The rate
maker, being in possession of this key rate, proceeds to in-
spect the individual building, surveying the various features
which enter into the actual rate itself. The time is too brief
at the present to enter into any lengthy remarks as to the
various schedules in use for difi'ei'ent classes of construction
and occupancy. For instance, there is a different schedule
for determining the rate on buildings of fire resistive con-
struction, one also for brick, and one for frame construction,
others for the various special hazards and again others for
long term business. It is necessary in rating a building to
determine the hazard of the particular risk and also of those
surrounding it. The aggregate hazards in or about group
themselves under four general headings, namely: —
1. Construction 2. Occupancy,
0. Protection, and 4. Exposure,
any of which, it we were to explain in detail, would require
a long talk in itself.
Based on Physical Hazard
Those who have studied the schedules in any way will
realize how extensive my remarks would have to be in order
to thoroughly explain the matter. It is not sufficient that
there be a schedule with certain chai-ges included, but the
rating officer must understand the processes and hazards in-
volved, those carried on in the various risks. One day he
may be called upon to rate a pulp mill, the next day a pack-
ing plant, and so on. Even after the building or plant has
been thoroughly inspected, the owners might further aug-
ment the protection by installing automatic sprinkler equip-
ment. This subject in itself is one which requires exhaustive
study and special treatment.
Do not overlook the fact that rates are based on the
physical hazard, and it is for this reason we find our rates
high. When the public are prone to state that rates are high,
they are justified in their statement, but at the same time
they cannot, with any degree of fairness, lay the blame at
the door of the insurance companies, because, after all, the
insurance companies are not responsible for the lack of pro-
tection, or the utter carelessness which exists in many of our
cities and communities, nor for the "jerry" built fire traps
everywhere, conflagration breeders waiting for the right kind
of a fire on the right kind of a night to wipe out even whole
cities.
Work of Engineering Department
In connection with the ratings, you will realize that the
work of the engineering department is of considerable value.
Their work is subdivided into branches also. They make
the inspections of cities from which fire and water reports
are published. They attend to the installation and examina-
tion of buildings and plants equipped with automatic sprink-
lers; electrical inspections; fuel oil installations and special
risk inspections of large manufacturing industries. Four in-
spections are made each year of the sprinklei-ed risks. The
value involved in these risks alone in Bi-itish Columbia is
over twenty-five million dollars. After each of their inspec-
tions, reports are issued and mailed to the companies and
the assured. They deal with, in detail, a list of deficiencies,
together with recommendations, and this matter is taken up
direct with the owners. They give advice to city officials
with regard to public fire protection, and are endeavoring at
all times to disseminate useful information.
The examining department is another important one;
their duties consist in examining all insuring documents, such
as daily reports, cover notes, endorsements and cancellations.
This is the department which endea\ors to see that the com-
panies collect the proper premium, and that forms are ac-
ceptable. The form is just as important as the rate, because
apart from the sense of security that a policy gives, it does
not function properly unless correctly written, so you will
see the necessity of carefully drawn wordings. It is not the
proper service of our office to attempt to do the underwriting
for head offices, but endeavor to see that no ambiguous
_ phraseology is used, that no dual coverings exist, that proper
segregations are made of items of insurance which are re-
quired under the tariff to be separately insured, to refuse ob-
jectionable clauses.
You will probably have realized by now that the func-
tions of a rating bureau have some worth. It is not the in-
tention to bore by any further lengthy remarks, but, how-
ever, there is one other department which I will touch on
briefly, namely, the plan department.
In March, 1918, the Association added to its eff'ectiveness
by taking over the work of manufacturing insurance maps
in this province. Since that time new maps have been made
of Courtenay, Vancouver water-front, Ashcroft, White Rock
and Nanaimo, and revisions of the following cities: Van-
couver, Chilliwack, Kamloops, Kelowna, Marpole, Mission,
Nelson, New Westminster, North Vancouver, Penticton,
Prince Rupert, Princeton, Rossland, Trail and Vernon. Dur-
ing the coming year new maps of Victoria will be made, also
further revisions of maps in the City ,of Vancouver.
Mav 27, 1921
THE MONETARY TIMES
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i CHARTERED ACCOUNTANTS I
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HENRY BARBER & CO.
Established 1885
Chartered Accountants
AUTHORIZED TRUSTEES IN
BANKRUPTCY
Grand Trunk Railway Buildins.
6 KinR Street West TORONTO
ALEXANDER G. CALDER
CHARTERED ACCOUNTANT
Specialist on Taxation Problems
Bank of Toronto Chambers
LONDON - ONTARIO
listablishuJ IS
W. A. Henderson & Co.
Chartered Accountants
508-509 Electric Railway Chambers
Winnipeg, Man.
KENNETH BOWMAN
Chartered Accountant
(Sticcfssor to H.ildwm, Dow A Bownianl
EDMONTON
ALBERTA
CHARLES D. CORBOULD
Chartered Accoontant and Auditor
ONTARIO AND MANITOBA
649 Somerset Block. Winnipeg
Correspondents at Toronto, London, Eng-,
Vancouver
David Mowat Donald MacTavish
Mowat, MacTavish & Co.
Chartered Accountants
712 Canada BIdg., Saskatoon, Sask.
\V. A Bawdev.
C.A. FC-A. i:nBl;i
nd .ind
W.iltsl.
!■■ H KiDi). C.A
BAWDEN
KIDD &
CO.
Charter
sd Accountan
8
CENTRAL BUILDING, VICTORM
, B.C.
Braac
h at Naoaino, B.C.
TclcRraph
c and Cable Address
"Nedw
lb," Victoria. B.C.
Crehan^ Mouat & Co.
Chartered Accountants
BOARD OF TRADE BUILDING
VANCOUVER, B.C.
D. A. Pender, Slasor & Co.
CHARTERED ACCOUNTANTS
805 Confederation Life Building
Winnipeg
ROBERTSON ROBINSON, ARMSTRONG & Co.
AUDITS
FACTORY COSTS
INCOME TAX
CHARTERED ACCOUNTANTS
24 King Street West ■ TORONTO
AND AT:-
HAMILTON
WINNIPEG
CLEVELAPMU
Arthur E.
Phillips
& Co.
Chartered Accoun
tants
508-509 Electr
ic Railway
Chambers
WINNIPEG
Man.
C:ihlc Add
■ ess--Unra
vel."
SERVICE
Thorne, Mulholland, Howson & McPherson
3420
CHARTERED ACCOUNTANTS
51 s .»Mi Prodi CTION
Bank of
Hamilton BIdg.
TORONTO
RONALD, GRIGGS & CO.
RONALD, MERRETT, GRIGGS & CO
Winnipeg, Toronto, Saskatoon, Moose Jaw,
Montreal, New York, London, Eng.
GEO. O. MERSON & COMPANY
CHARTERED ACCOUNTANTS
Telephone Main 7014
LUMSDEN BUILDING TORONTO, CANADA
Hubert Reade & CompaDy
Chartered Accountants
Auditors, Etc.
407-408 MONTREAL TRUST BUILDING
WINNIPEG
CLARKSON, GORDON & DILWORTH
Chartered Accounta
Receivers. Eiai
Merchants Bank Btdg.. 15 Wellingto
Established l.W)
F. C. S. TURNER
.lAnES GRANT
WILLIAM GRAY
F. C.S. TURNER & CO.
Chartered Accountants
TRUST & LOAN BUILDING, WINNIPEG
THE MONETARY TIMES
rREFEKENCES IM)ER DOMINION WINDING-UP ACT
SALE OF COMPANY PROPERTY
Civil Code of Quebec Cannot be Followed Where Winding Up
is I'nder Dominion Act.
IN an appeal in the case of Welland Hotel vs. City of Mont-
feal, to the Quebec Superior Couil, contesting the disti-i-
bution made to creditors by th« liquidator of a company and
claiming priority for certain claims, the appeal was dismissed,
the Court holding that when a company in Quebec is being
wound up under the Dominion Winding Up Act, the distribu-
tion of moneys must be made in accordance with that Act
and not under the Civil Code of Quebec, and that where a
liquidator has been duly authorized to carry on a company's
business, whereby certain assets have been realized, the ex-
penses of the employees, the fees of the liquidator and inspec-
tors, the costs of the attorneys, the costs of the first seizure
and the rent during the period of liquidation, all have prefer-
ence under the Dominion Winding Up Act to any claims by
the City Corporation for water rates and business tax.
The Superior Court dismissed the contestation of the City
of Montreal for the following reasons: "The liquidator of the
company had prepared a statement showing the distribution
to creditors of the sum of $10,278, realized by time. The City
of Montreal contested this distribution. It alleges that it
produced a claim of $666, for water rates and business tax
for the year 1917; that this claim is privileged, but was not
placed in its proper class of creditors; that the claim of the
contestant takes precedence of the fees of the liquidators
and inspectors and all other expenses of the insolvent estate,
other than those necessary for the inventory and the sale of
the property, subject to the privileged claim of the contestant
and for the distribution of the proceeds of the sale of the
property.
"Considering that this is a matter of the liquidation of
a joint stock company, and that such liquidation is governed
by a Dominion statute, namely, the Winding-up Act, R.S.C.
1906, ch. 144; that ch. 144 contains, in the matter of the
liquidation of companies with capital stock, special provisions
which the Court shall apply before all other general laws and
that it is only when this chapter is silent that recourse must
be had to such general laws; that under the said ch. 144 the
liquidator of such companies may under the authority of ihe
Judge of a Court, carry on business during the liquidation of
the company, if it is in the intei'est of the creditors to do so;
that the liquidator has so carried on the business of the com-
pany up to November 22, 1907, the date on which he finally
liquidated the assets of the company; that under R.S.C. 1906,
ch. 144, sec. 92, "all costs, charges and expenses properly
incurred in the winding-up of a company, including the re-
muneration of the liquidator, shall be payable out of the assets
of the company in priority to all other claims"; that the
contestant does not contest, in this case, the legitimacy and
the quantum of the claims of the creditors as ranked in the
statement, but only contests their ranking, claiming to have
the right to rank before them and in preference to them;
that all the claims so ranked are absolutely privileged under
the said Act and are so even within the spirit of the common
law, in view of the circumstances which surrounded their
creation and that, therefore, the contestant's right to contest
is ill founded both in fact and in law, the present statement
of the liquidator, the costs, charges, expenses and debts con-
stituting these claims having been contracted by the said
Iqiuidator in the general interests of the liquidation; conse-
quently dismisses the contestation of the contestant with
costs."
A special general meeting of the Toronto Stock Ex-
change will be held on June 1 to pass upon the application
of J. K. Cronyn for leave to transfer his seeA, to Edwai'd
Cronyn, consequent upon the latter's election as a member,
for which a ballot will be taken on the following day. The
former has entered another line of business, after repre-
senting the firm of Edward Cronyn and Co. on the floor for
some years.
THE Saskatchewan Court of Appeal held in the case oi
National Trust Company vs. Gilbart, that as the sale
price of certain lots is admittedly an as.set of a company, the
sale price does not cease to be an asset even if each director
individually takes a portion for his own use, when he or
they have not received authority from the company to do so,
and, on an assignment being made by the company, the pro-
perty in the money never having passed out of the company,
the assignee is entitled to sue for its return.
The chief part of Mr. Justice Newland's decision follows:
"The three defendants were the only members of the Saska-
toon Trading Company. They were also the directors of the
company. The company owned two lots of land which it sold.
The proceeds, after paying for the land, were divided by the
three defendants amongst themselves. No dividend was de-
clared, they simply divided amongst themselves certain assets
of the company. They could not, in my opinion, make title to
this property in that way, therefore the amount each one
took out of the assets of the company would still be the pro-
perty of the company, and each of the defendants would
hold the amount he obtained in that way in trust for the
company. The company has since become insolvent and has
made an assignment for the benefit of creditors, and the
assignee brings this action to recover the amount of the
assets so disposed of.
"I think the assignee has the right to recover. The de-
fendants, having no legal title to the assets of the company
which they divided amongst themselves, have no right to
retain the same, and must hand the same over to the assignee
in order that it may pay the debts of the company. Having
had the use of this money for some time, they should pay
interest on the same at the legal rate."
ASSESSMENT FOR SUCCESSION DUTY
By a decision handed down in the Supreme Court of
British Columbia on May 12, in which judgment for the
Crown was given in the case of the King against the United
Strtes Fidelity Co. and Lorenzo J. Quagliotti, Justice Gregory
aflirmed that succession duties must be paid on the amount
of estate valuations sworn to for probate purposes, even
though the estate has been* over-valued, and it has been
found impossible to realize upon it.
The Crown sued for payment of succession duty on the
Victoria estate of the late Mrs. PS'tronilla Quagliotti. the
action being tried here about two months ago. The estate,
which included several old buildings in the city, as well as
the Variety and Romano Theatres, was valued for probate
in the sum of $886,000, the duty on which came to $44,287.
The company gave a bond, in twice the amount of the duty,
as surety for the executor, Lorenzo J. Quagliotti. The de-
fendants pleaded that the estate had been much ovei-valued,
and that it had never been possible to realize upon it. It
was given in evidence that the estR'te had never realized
enough. to pay for its upkeep; and that it had lai-gely been
sold for taxes. Evidence was submitted to show that a fair
valuation would have been about half of that R'ccepted for
probate; and it was argued that duty should be reckoned on
the amended valuation.
Justice Gregory agreed that the estate was overva'lued.
and thought that it was not worth more than $500,000 in
191.5. when the valuation was made. But he held that when
the bond was executed both the defendants and the Ci'own
believed it was to secure payment of the F.'mount of duty
on the actual valuation made for probate, which was accepted
by all the parties; and he held that the company is respon-
sible under the bond. Judgment for the plaintiff was given
in the sum of $44,287.50, with interest at 6 per cent, since
Mry, 1915, the defendant company, upon paying the amount
due. to stand in the place of the Crown as far as the amount
of the duty is concerned.
May 27, 1921
THE MONETARY TIMES
35
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I CHARTERED ACCOUNTANTS I
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J. c
ulross Millar. C A.
ter J, .M..cdonald.C.A.
Mill
ar,
Macdonald & Co.
Cha
rtered Accountants
Home
Bank
Build ng, 428 Main Street
WINNIPEG
Norman B. McLeod
Chartered Accountant
AUDITS INVESTIGATIONS
COST ACCOUNTING
803 Kent Bldg. - TORONTO
Phone MAIN 3914
R. Willinmson. C.A, J. D, Wallace. CA-
A. .1. Wallici, C.A HA Shiach C.A.
Rutherford Williamson
& CO.
Chartered Accountants, Trustees
TORONTO MONTREAL
Represented at Halifax. St. John Winnipee
Vancouver.
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I REPRESENTATIVE LEGAL FIRMS f
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CALGARY
Charles F. Adams, K.C.
Bank of Montreal Bldg.
CALGARY - - ALTA.
LETHBRIDGE, Alta.
Johnstone, Ritchie & Gray
Barristers, Solicitors, Notaries
LETHBRIDGE Alberta
SASKATOON
C 1, DORiK. I?.A. B. M Wake
,.c 1
DURIE & WAKELING |
Barristers and Solicitors
Solicitors for the Bank of Hamilton
Great West Permanent Loan Co.
Monarch Life Assurance Co.
The
The
Canada Building Saskatoon. Ca
nada
W. K. W. Lent. K.C. Alex. ». Mackay. .M.A..
LL.B. H. U. .Mann. M.A.. LL.B.
LENT. MACKAY & MANN
Barristers, Solicitors, Notaries, Etc.
305 Gram Exchansc Bids . CalRary, Allicrta
Cable Address: Lenjo." Western Union Code
Solicitors for The Standard Bank of Canada.
The Northern Trusts Co.. Associated .Mort-
gage InN-cstors. ^c
WRIGHT &WRIGHT
Barriiten, Solicitors, Nolariei, F tc.
Suite 10-15 Alberta Block
CALGARY, ALBERTA
EDMONTON
1 A. C. KutlKrford. K.C LL.IJ.
amieson. K C. Chas. H.Gr;
H. McCuaii! Cecil Rutherford
RUTHERFORD. JAMIESON
& GRANT
Barristers, Solicitors, Etc,
514-18 McLeod Bldg. Edmonton, Alberta
LETHBRIDGE, Alta.
Conybeare, Church & Davidson
Barristers. Solicitors, Etc.
Solicitors for Bank of Montreal. The Trust
and Loan Co. of Canada. British Canadian
Trust Co.. &c.. &c.
C. F. P. Conybeare, K.C. H. W. Church. .MA.
R. R. Havidson. LL.B.
Lethbridge Alta.
MEDICINE HAT
G F. H LoM-.. LL.B. J. W. Sleight, B.A.
LONG & SLEIGHT
Barristers, etc.
MEDICINE HAT and BROOKS, Alu.
MOOSE JAW
Grayson, Emerson & McTaggart
Barristers, Etc.
Moose Jaw • Saskatchewan
NEW WESTMINSTER
JOHN W. DIXIE
Barrister and Solicitor
405 Westminster Trust Building
NEW WESTMINSTER, B.C.
PRINCE ALBERT
COLIN E. BAKER, B.A.
Solicitor for the City of Prince Albert
IMPERIAL BANK BUILDING
PRINCE ALBERT, SASK.
TORONTO
G. W. MORLEY & COMPANY
Barristers, Solicitors, Etc.
802 Lumsden Building, Toronto
Solicitors for A. G. Spaldint! & Bros, of Can..
Ltd.; A. J. Reach Co. of Can.. Ltd.: Dominion
Chautauquas. Ltd.. etc.. etc.
Special attention niven to Corporation work
and collections,
table Address: "Morley," Toronto
VANCOUVER
W.,1. Bowser. K.C. K. 1- Ke,d. K.C.
IJ. S.WallhridBe A. HDouRlas J.O.Gibson
BOWSER, REID, WALLBRIDGE,
DOUGLAS & GIBSON
Barristers. Solicitors, Etc.
So;i^:itors f.ir Hank of -Montreal (Bank of
British N<jrth America Branch)
St., VancoDver, B.C.
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THE MONETARY TI.AIES
Volume 66
News of Industrial Development in Canada
Another New Pulp Manufacturing Enterprise for Northern Ontario — Steel Corpor-
ation Confronted With Shut-Down Unless Employees Accept Wage Reduction —
British Columbia Canneries Operate Only to Maintain Their Position in the Face of
Wide Competition— Alberta Wool Growers Realized Favorably on 1920 Output
CREATION of another industrial centre in Northern On-
tario is indicated by a recent announcement concerning
the establishment of T. S. Woollings Co., Ltd., a pulp manu-
facturing- concern, on the Frederickhouse River, near Con-
naught Station. T. S. Woollings is president of the company,
and the largest shareholder, and he states that the company
will be entirely Canadian.
Seventy men have been at work clearing 150 acres of
timber, and excavation is now under way, preparatory to the
building of the rossing- plant, saw mill and other buildings,
which will represent an outlay of over a quarter of a million
dollars. About 150 men will be employed at the plant when
completed and about .3,000 men will be working for the
company in the bush.
Although the Woollings Company has a large reserve of
timber, it is the intention of the directors to purchase all
pulp from the fanners. The yard limits will be large en-
ough to contain 180,000 cords of pulpwood, and 200,000 ties.
According to Mr. Woollings, electricity will be used at the
plant, and the company will develop its own power to the
e.xtent of about 700 horse power. It is expected that the
plant will be officially opened at the end of .July of this
year.
Connaught Station is a little village 'of about 400 in-
habitants, but since the advent of this new company there
has been a great deal of activity which will no doubt in-
crease as developments take place. Another lumber enter-
prise, the St. Maurice Lumber Co., has a small rossing plant
at the station, helping to give employment to a number of
men.
Mattagami Mill to Reopen
Owing to a slight improvement in the market for un-
bleached sulphite pulp, it is proposed to reopen the mills of
the Mattagami Pulp and Paper Co., at Smooth Rock Falls,
Ont. The plant has been closed for about a month, owing
.to dullness in the sulphite market, but some demand has
been received, resulting in the decision to recommence
operations. The plant is located on the Mattagami River
west of Cochrane. The sulphite mill has a designed capacity
of 45,000 tons per annum.
^ After being out on strike for two weeks, employees of
the E. B. Eddy paper mills at Chaudiere have returned to
work under the same conditions, and with the same rates
of pay which prevailed prior to May first, on the under-
standing that if a reduction in wages is decided upon by
the majority of the big mills in Canada and the United
States, the reduction will go into effect in the local mills.
No change is announced from the Jonquieres and
Kenogami, Que., paper mills, and there has been no report
of any successful attempt being made to settle the labor
troubles between the owners of the mills. Price Bros, and
Co., and their employees. The company has written the
union brotherhood stating that they would reduce wages
20 per cent., and hereafter wages will be reduced or in-
creased in accordance with circumstances. They have re-
•ceived no reply.
The Steel Industry
Intei-est in the steel industry in Canada is now being
centered upon the attitude of the employees of the Do-
minion Steel Corporation in accepting a wage decrease of
about ten per cent. The management of the company has
told the men that it was doubtful whether under present
conditions the plant could continue to operate at the partial
rate it has been working since early winter. The only busi-
ness of a substantial nature in sight is a rail order from
the Dominion government in anticipation of the needs of the
railways, which the government was willing to place at the
present time to relieve the unemployment situation. The
amount of the order is fifty thousand tons, delivery of which
would be required within the next four months.
In view of the falling market in steel, and the certainty
of further I'eduction of rail quotations in the near future,
this is the last chance for the company to obtain this large
government order at the quotation the railway department
has been offering. It is felt that further delay in closing
with the department will mean that the order will not be
placed at all this season.
Employees have been made familiar with the situation,
and everything hinges upon their willingness to accept the
wage reduction, Refusal to accede to the request of the
management may result in the closing of the plant entirely,
so that it it a case of "a half a loaf or none." About six
months ago a wage reduction of 20 per cent., on existing
rates was imposed, but it is pointed out that owing to the
fall of the steel market since, rails could not be rolled with
any margin whatever above cost, unless there was a general
wage reduction in all departments.
Curtailment of Salmon Pack
Reference was made in these columns recently to a re-
duced operation of the canneries in British Columbia. In
the face of the present unfavorable market, cannerymen ex-
plain, many of the plants prefer to shut down altogether
rather than run the risk of operating at a loss. The war-
time demand, when the armies were calling for food, and
the peoples of Europe were buying fish for want of the
opportunity to get other foodstuffs, ceased with the war,
and last year, when the plants were in full swing all sea-
son, the lower grades, the pinks and the chums, were left
on the hands of the cannerymen or of the banks, and re-
main there yet. Close to three-quarters of a million cases
are still in stock awaiting a favorable mai'ket.
Canneries that have decided to get under way as usual
are doing so, it is claimed, not with any anticipation of pro-
fiting by the season's operations, but chiefly through a wish
to maintain their position in the face of wide competition,
and to be in readiness for a possible picking up of the
market next year. Output will be restricted to the canning
of sockeyes only, and the poorer grades of fish will be left
undisturbed.
With the falling away of the European demand, can-
nerymen realize that the period is one of readjustment, but
point out that they are hampered by the fact that wages
and supplies are much slower to drop than should be ex-
pected. Fishermen, accustomed to the recent prosperous
years, in the course of which they would clear $1,000 for the
work of a season lasting only two or three months, are fight-
ing any reduction, while at the same time operators are
finding that tin plate and boxes are as high priced as ever.
The contracts for tin plate were in most cases made last
fall, before there were any intimations of a falling market.
Total shipments of wool by Alberta producers in 1920
amounted to 1,465,844 pounds, and the average price per
pound net f.o.b. shipping points was 28.83 cents, according
to a report by N. T. Macleod, secretary of the Southern
Alberta Wool Growers' Association. Canadian Co-Operative
Wool Growers', Ltd., Toronto, handled the whole output. In
view of the universally depressed wool market, it was
thought that flock owners realized very well.
May 27, 1921
THE MONETARY TIMES
IF you are not younger than 22 years
*■ or not older than 41 years and in good
health, send for particulars of our famous
Money-Back Policy
Please state date of birth.
The Travellers Life
Assurance Company of Canada
MONTREAL, QUE.
Hon. GEORGE P. GRAHAM. Prc^iJent.
LONDON
GUARANTEE AND
ACCIDENT COY., Limited
Head Office for Canada - Toronto
Jyers' Liability, Eleviitor. Contract, Personal .Accident. Fidelity
Guarantee. Internal Revenue Sickness. Court Bonds.
Teams and Automobile.
AND FIRE INSURANCE
IT PAYS TO INSURE YOUR AUTOMOBILE
WITH
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Maximum Service.
Mil
Cost.
CANADIAN STRONG PROGRESSIVE
FIRE INSURANCE
AT TARIFF RATES
General Capital Subscribed
$500,000 Automobile
Burglary
A. 1-:. Ham, Vice-Presidtnt Hovi; Ol llcl:
J. O. Mkun. Sec.-Trtas. 10th Floor, Electric Railway Chambe
Good Openings for Live Agents
Palatine Insurance Company
LIMITED
OF LONDON. Ei\CLA,\D
Capital Fully Paid $1,000,000
Fire Premiums, 1919 3,957,650
Total Funds - 6,826,795
Head Office : — Canadian Branch
COMMERCIAL UNION BUILDING, MONTREAl
\V. S. ,IOE.LlN<i, Manager
Toronio Office— 60 KING STREET WEST
Jones & Proctor Bros.. LraiTRn, Anents
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Automobile— 1 92 1 —Season ■
Policies to cover ANY or ALL motoring risks g
ATTRACTIVE AGENCY CONTRACTS I
British Empire Fire Underwriters
S2-88 King: Street East, Toronto
Assets Exceed $4,000,000
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Guardian Assurance Company
Limited, of London, England
Ivstabhslied IS2I
Capital .Sub.>icril)e(l SIO.000.000
Capital Paid-up 8 5,000,000
Total Investments Exceeil 840,000.000
Head Office for Canada, Guardian Building, Montreal
H. \1 I.A\IHi-;l;T. M.maucr H I- HAKDS Assistant MjnaRer.
ARMSTRONG & DeWITT, Limited, General Agents
36 TORONTO STREET, TORONTO
CANADA SECURITY
ASSURANCE COMPANY
GUARANTEED BY
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Fire - Hail - Automobile
Assets Exceed $125,000,000
Offices For West
CAUGARY, Alta. WINNIPEG, Man.
38
THE MONETARY TIMES
Volume 66
NEW INCORPORATIONS
Capital for Week Ended May 21 is $18,710,500. Compared
With $36,227,715 Previous Week
AUTHORIZED capital of $18,710,500 is represented by
companies whose incorporations were reported to 77ii-
Moiicltiry T'i)ncs during the week ended May 21, compared
with $36,227,715 the previous week. A comparative sum-
mary by provinces is as follows: —
Week ended Week ended
May 14. May 21.
Dominion $29,106,000 $ 6,426,000
British Columbia 945,000 5,559,000
Manitoba 530,000
Ontario 5,338,715 5,318,000
Prince Edward Island 140,000
Quebec 838,000 737,500
Totals $36,227,715 $18,710,500
The following is a list of companies recently incorpor-
ated under Dominion charter with head office and authorized
capital:— Carlsbad, Ltd., Carlsbad Springs, $100,000; Cotton
Fabrics Co., Ltd., Toronto, $40,000; A. E. Birdsell Co., Ltd.,
Toronto, $400,000; British Magnesite Corp., Ltd., Montreal,
$100,000; Kemp Metal Auto Wheel Co., Ltd., Toronto, $1,-
000,000; A. Bernard & Co., Ltd., Montreal, $100,000; National
Household .'Appliances, Ltd., Sackville, $400,000; Canadian
Sanitary Can Co., Ltd., Toronto, $400,000; Life Extension
Institute of Canada, Ltd., Montreal, $20,000; Star Trunk and
Bag Manufacturing Co., Ltd., Montreal, $49,000; Peace River
and Fort Norman Navigation and Oil Development Co., Ltd.,
Montreal, $12,000; Gosse-Millerd. Ltd., Vancouver, $1,000,-
000; Canadian Boxboro Shoe Co., Ltd., Toronto, $80,000;
Persian Fur Co., Ltd., Montreal, $50,000; McHale Pyorrhea
Remedy Co., of Canada, Ltd.. Toronto, $100,000; Dominion
Development Corp., Ltd., Toronto, $250,000; .\tlantic Trans-
portation Co., Ltd., Montreal, $100,000; Hold-Mar Vacuum
Piston Co., Ltd., Montreal, $150,000; American Stocks and
Bonds, Ltd., Windemere, $500,000; Border Cities Manufactur-
ing Co., Ltd., Windsor, $50,000; Corporation and General In-
vestments, Ltd., Toronto, $100,000; Confederation Finance
and Credit Corp., Ltd., Toronto, $75,000; Kirsch Manufactur-
ing Co., of Canada, Ltd., Woodstock, $.50,000; Pacific Dairies,
Ltd., Montreal, $250,000; Canadian-Kansas Oil Co., Ltd.,
Montreal, $600,000; Canadian Poster Co., Ltd., Montreal,
$50,000; Searle Grain Co., Ltd., Melfort, $250,000; Spiral Nail
Co. of Canada, Ltd., Toronto, $100,000; Furno, Ltd., Quebec,
$50,000.
Provincial Charter
The following is a list of companies recently incorpor-
ated under provincial charter with head office and authorized
capital: —
British Columbia. — Stoneite Products, Ltd., Vancouver,
$200,000; B. Brynildsen Sons, Ltd., Bella Coola, $25,000;
Western Fuel Corp. of Canada, Ltd., Nanaimo, $5,000,000; A.
J. Smith Garage Co., Ltd., Kelowna, $25,000; Canadian-
Mexican Shipping Co., Ltd., Vancouver, $50,000; Mountain
Cove Sheep Ranch Co., Ltd., Greenwood, $25,000; Consumers'
Fruit Exchange, Ltd., Kelowna, $10,000; Roray and Yeaman,
Ltd., Vancouver, $150,000; Crown Millinery Parlors (Vic-
toria), Ltd., Victoria, $15,000; the "Eco" Blue Flame Pro-
ducts, Ltd., Vancouver, $50,000; Calcining Process Co., Ltd.,
Vancouver, $9,000.
Manitoba. — J. Albert Tremblay Construction Co., Ltd..
Winnipeg. $30,000; Clark Bros, and Hughes, Ltd., Winnipeg,
$20,000; Canadian Forresters' Holding Association, Ltd.,
Winnipeg, $300,000; Leslies. Ltd., Winnipeg, $1.50,000; Knit
Goods, Ltd., Winnipeg $30,000.
Ontario. — Gamble Robinson, Cobalt, Ltd., Cobalt, $40,-
000; Happy Home Manufacturing Co., Ltd., Toronto, $40,-
000; London Finance Corp., Ltd., London, $1,000,000; Mc-
intosh Grain and Feed Co.. Ltd., North Bay, $40,000; Water-
ford Co-operative Growers, Ltd., Waterford, $4,000; West
Window Regulator Co., Ltd., Toronto, $100,000; Egan Phono-
graph Co., Ltd., Toronto, $100,000; Mechanical Leathers, Ltd.,
Toronto, $40,000; Mutual Builders, Ltd., Toronto, $40,000;
Bonnett Floral Ltd., Toronto, $250,000; Dump-Trucks, Ltd.,
Toronto, $40,000; A. A. Mcintosh, Ltd., North Bay, $40,000;
Muir Porcupine Gold Mining Co., Ltd., Toronto, $2,000,000;
Mastercraft Floors, Ltd., Toronto, $40,000; Jewish National
Workers' Alliance Building, Ltd., Toronto, $40,000; Kilbarry
Land Co., Ltd., Toronto, $24,000; Producers Terminal Co.,
Ltd., London, $1,000,000; William Ward and Sons, Ltd., Lon-
don, $300,000; Wright & McFadden, Ltd., Toronto, $40,000;
C. Smythe, Ltd., Toronto, $40,000; Acton Mines, Ltd.,
Gananoque, $100,000.
Prince Edward Island.— W. T. Wellner Co., Ltd., Char-
lottetown, $40,000; J. Stanley Wedlock, Ltd., Charlottetown,
$100,000.
Quebec. — Eastern Agencies Co., Ltd., Quebec, $35,000;
La Compagnie Rene, Ltd., Lake Megantic, $20,000; Les
Nouveautes pour Dams, Ltd., Drummondville, $20,000; Martel
and Simoneau, Ltd., Quebec, $99,500; O. Goulet and Fils, Ltd.,
Quebec, $149,000; Niagara Hotel, Ltd.. Montreal, $10,000;
Villeray Co., Ltd., L'Isle Verte, $49,000; Star Lumber Co..
Ltd., Saint-Joseph, $49,000; Kewmos Realties, Ltd., Montreal,
.$20,000; Orphelinat Italien St. Joesph, Montreal, $100,000;
Security Fence, Ltd., Montreal, $195,000; Sawyerville Co-
operative Society, Ltd., Sawyerville, $10,000.
INSURANCE LICENSES AND AGENCY NOTES
License has been issued to the Law Union and Rock In-
surance Co., Ltd., to tr&nsact in British Columbia the busi-
ness of automobile, burglary and plate-glass insurance, in
addition to accident and sickness insurance for which it is
already licensed.
The Canada National Fire Insurf.rice Co. has been regis-
tered to transact in the province of Quebec, the business of
fire insurance. H. M. Brown, 9 St. John St., Montreal, is the
chief agent for the province.
W. W. King, manager in the prairie provinces for the
Mutual Life of New York, has been offered and accepted
the post of joint manE^ger for the province of Ontario with
head office in Toronto. A. E. Donovan, who, for a number
of years was a member of the Ontario legislature represent-
ing Brockville, is the other manager for Ontario.
J. A. Campbell Colvil has been appointed special agent
in Montreal for the Niagara Fire Insurance Co. Mr. Colvil
has had considerable experience in marine insurance both in
Scotland and Canada.
Wni. F. Sangster has been appointed branch manager
for the province of British Columbia, of the Generp.'l Acci-
dent Insurance Co. of Canada, with headquarters at York-
shire Building, Vancouver. Mr. Sangster came to Canada
twelve years ago from Glasgow. For some years he w&s
inspector in Ontario for the London and Lancashire Guar-
antee and Accident, moving to Vancouver in 1918 to become
manager of the insurance department of the Northern Se-
curities, Ltd. This position he resigned to become resident
inspector for the Queensland Insurance Co., prior to his
pi-esent appointment.
Thomas H. McWhirter, provincial manager of the Mer-
chants Casualty Accident and Life Insurance Co. for Alberta,
has been promoted to the managership of the Eastern Can-
ada division, with headquc.rters at Toronto. His territory
will be from Winnipeg East. Mr. McWhirter's promotion
is the result of hi.s firm expanding its policy and taking in
many new lines of insurance, of which Mr. McWhirter has
had experience. H. R. Harris, who has been with the com-
pany for several years, will become field manager for Alberts',
and the office managership will go to A. Coi-mack, another
employee of long standing.
May 27, 1921
THE MONETARY TIMES
Confederation Life
ASSOCIATION
INSURANCE IN FORCE $136,000,000.00
ASSETS, Dec. 31, 1920 - $ 27,213,246.00
LIBERAL INSURANCE AND ANNUITY
CONTRACTS ISSUED UPON ALL
APPROVED PLANS
HEAD OFFICE
TORONTO
"Solid as the Continent"
Throughout its entire history the North American Life
has lived up to its motto "Solid as th** Continent." Insurance
in Force, Assets and Net Surplus all show a steady and per-
manent increase each year. To-day the Financial position
of the Company is unexcelled.
1921 promises to be bigger and better than any year
heretofore. If you are looking for a new^ connection, write
us. We take our agents into our confidence and offer you
service — real service.
Correspond with
E. J. HARVEY, Supervisor of Agencies.
North American Life Assurance Company
"SOLID AS THE CONTINENT"
HEAD OFFICE TORONTO
Important Features of the Ninth Annual Report
WESTERN LIFE ASSURANCE CO.
HEAD OFFICE - WINNIPEG, MAN.
Assurances, New and Revived f 1,308,750.00
Premiums on same 44,705,25
Assurances in Force 4,233,907.35
Total Premium Income 128.286.67
Policy Reserves 291,969.00
Admitted Assets 358,667.36
Average Policy 2,306.04
Premium per fl.OOO Insurance — Collected in
Cash 30.30
For rarticuUirs of a good agency apply to
ADAM REID, Managing Director • WINNIPEG
The Mutual of Canada Day by Day
During the year I9'J0 the average payments in benetit« (if dirterent kinds
to heneticiirics and policyholdeVs amounted to $11,500 for every
working day throuRhout the year, a total of 83.-lir,^.8J0. Every year
the payments have increased, the total made since the establishment of
the company being over thirty-three millions. The funds in hand to
guarantee future payments amount to forty-two millions — so that the,
company has cither paid or holds in trust more than $75,000,000. This
total exceeds the premium income by eight millions. These figures show
thjt the Mutual Life of Canada is making good on all contracts entered
into in past years. It is not only "making good." it is " making better,"
for the profits alone actually paid during the years since establishment
amount to eight millions of dollars, a record of economV and service of
which any life office might justly be proud.
The Mutual Life Assurance Co. of Canada
Wateric
Ontario
"For the
man
of
vision."
Pol
cun
cies which maj
istances The '
be adjustc
•Canadian
d to meet
■ Series is
changed cir-
sued only by
The
London
Life
Insurance Co.
HEAD OFFICE
LONDON
CANADA 1
ONTARIO ORGANIZER WANTED
THE CONTINENTAL LIFE INSURANCE COMPAN1 . lORONTO.
desire the s<rrMC<-s of « brit;ht. capable younK mnn as ONTARIO
ORGANIZER.
Apply to S. S. WEAVER
Enntern Superintendent
THE CONTINENTAL LIFE BUILDING,
Bay and Richmond, - TORONTO, ONT.
ON THEIR MERITS ALONE
There must be some good reason why so many hard-
headed business men, when requiring insurance for
business purposes, apply to The Great-West Life.
"Sentiment" has nothinj; to do with the choice — The
Great-West Policies are chosen on their merits alone.
Low rates and remarkably high profit returns are the
reasons.
Information on request.
THE GREAT-WEST LIFE ASSURANCE COMPANY
DEPT. ■ F •
HEAD OFFICE
WINNIPEO
The Western Empire
Life Assurance Company
Head Office: 701 Somerset Building, Winnipeg, Man.
SASKATOON
Offices
EDMONTON
VANCOUVER
Northwestern Mutual Fire Association
SEATTLE WASH.
Heeid Office for Csnada, Hamilton, Ont. Assets a%'er $1,700,000
Writing Fire Insurance at Cost
All Policies dividend paying and non-assessable.
NOR.\1AN S. JONES, Manager K J. M.AHONY, Ass't Manager
Insurance Compan , Limited, of PARIS, FRANCE
Capital fully subscribed, 30% paid up S 2.000,0110.1)0
Fire and General Reserve Funds
Available Balance from Profit and Loss Account
Net premiums in 1919
Total Losses paid to ,11st December. 1919...
iian Branch. 17 St ,)ohn Street. Montreal
icii Ferrand. Toronto Offices. J. H. Ewart. Chief Agent. 18 Wellington
t East ; R. B. Rice & Sons. Toronto Agents, 66 Victoria Street.
8,270,000,011
.s.s.sai 00
S.648,669.00
M,.i00,O0O,00
Manager for Canada,
THE MONETARY TIMES
Volume 66
News of Municipal Finance
General Increase in Tax Kates for 1921- A Few Reductions Are Reported, While Some Cities
Have Maintained the Level of the Previous Year— Brantford Had Small Revenue Deficit— A
Substantial Credit Balance for Montreal— Manitoba Has Taken Two Delinquents Under Its Wing
TN in-escnting their budgets for the current year very few the general assessment increased 128 per cent, and the busi-
-•■ municipalities have been able to show lower require- ness tax collections expanded by 113 per cent. In 190J there
ments, and, as usual, the burden must rest upon the tax- was a realty tax rate of 15 mills, which was based on outlays
payers. Some cities have managed to keep 1921 tax rates aggregating $2,255,981, while the 1921 rate of 30 mills is
down to the level of the previous year, while in a few isolated based on outlays of $8,582,669. The rateable assessment in
cases there have even been declines. But it might be well 1909 \vas $107,997,320, as compared with $238,677,000 in 1921.
to mention here that in such instances increasing assessment Per capita realty tax levy for Winnipeg's 33,721 rate-
valuation enters largely into consideration. A point in illus- payers this year is estimated at $213, exclusive of water
tration is Brantford, which shows a decline of one mill in district levies. The amount raised by realty ta.xation in 1909
tax rate while expenditures increased by about $115,000. represented $13.23 for evory person in the city at that time.
This was made possible by an increase in assessment from Th,' amount to be laised by rsalty taxation this year repre-
twenty-one to twenty-tive million dollars. sents a per capita outlay of $36.86 covering the general
Perhaps one of the most important factors in regard to population,
the increasing tax rate is the growing debt charges which ,, ^ , ^ t,
most of our municipalities are facing.' During the past two ., M""*"'''' Que.-Revenue totallmg $34,721,199 passed
years municinal borrowings have baen heavy. Capital expen- '"}°}}\l treasury of the city during the year ending December
ditures, which were delayed during the war period, of neces- f ^' ^^'^^' f ^^ording to a statement ot the civic hnances which
sitv had to be undertaken, and with the rapid rise in debt, has just been prepared by the city controller. Expenditures
larger appropriations are necessary each year for intei-est, ''"""^■. the year amounted to a total of $33,991,245, leaving
sinking fund and annual payments where the debentures are ^ "■«';* ^'"l'^"" °^ $(29,954 on hand January 1, 1921.
of the instalment type. ^ ictoria, B.C. — The sum of $2,290,888 is the estimate for
The following table, which has been compiled by The this year's outlays, which is about $160,000 in excess of 1920.
Monetary Times, although not very complete, is fairly repre- The city debt makes up nearly one-quarter of the total, or
sentative of the situation throughout the country, and illus- $517,537, but the biggest single item is for educatibn, which
trates just how the expenditures of our municipalities stand will cost the city approximately $562,000, if all the money
this year in comparison with 1920:— asked for that purpose is spent.
1921. 1920. Cal.sary, Alta. — The city council has passed the mini-
Mill rate. Mill rate. mum service tax. The tax will apply to all citizens who do
Orillia, Ont 46 47 not pay taxes of any other kind. Single people up to $1,000
Oshawa, Ont 40 37.50 and married people up to $2,000 income will pay $5, and over
St. Thomas, Ont 34 34 that amount will pay $10. Soldiers will be exempt up to
Peterboro, Ont 36.30 35 .S1,000 and $2,000, and their pensions will not be included in
Port .Arthur. Ont 41 37 income. Married women will be taxed if they earn separate
Niagara Falls, Ont 38.60 32.50 incomes.
Gananoque, Ont 47 42 Manitoba. — The provincial government has taken charge
Brantford, Ont 39 40 gf the finances of Assiniboia and St. James municipalities.
Brockville, Ont 37.50 37 xhe government has guaranteed pressing liabilities of the
London. Ont 38.80 40 municipalities, and will supervise all expenditures until they
Sarnia, Ont 39 36 are on a more stable basis. All cheques issued by the niunici-
Fort \\illiam, Ont 39 36 palities must be approved by the government, and already
Toronto, Ont 33 30.50 the expenditures have been decreased by $50,000 in St. James
rv.ew 'Westminster, B.C 36 36 arid by an appreciable extent in Assiniboia.
Rel^i'n^'s k 43 3^ Brantford, Ont.— There was a deficit for 1920 of $6,878,
„ ", . ' ' c,' ; ,„ ,-^ ,r. .n total revenue being $1,099,497, and total expenditure, $1,106,-
Saskatoon, Sask 46.55 40.40 ^n^ r^- ■ ^t-^- u 1,1 1 ^ ^.o .i.io 1^1
,, T c^ 1 ,,. ,H ^/> S7o. Civic utilities, however, had a surplus of $8,222. The
Moose Jaw, Sask 46 41.60 ., ., , ••.■ , , , , ' ■,
„ . -r> „ ,„ ,„ city owns three utilities, namely, waterworks, street railwav
Nanaimo, B.C 48 43 j u j -ex ^ d j- ^.t 14. ^ 1
,,, „ .,, „ . „., „_ and Hvdro-Electric. Revenue from these last year amounted
Walkerville, Ont 32 32 . a.,^V,,,o i ^- o..Tieooi rr-i, i
M 1 •'11 «;■ V r- CO to $460,443 and operating expenses, $316,831. The sum of
„ , ' , ,. !o ,-/, .^ r-- $110,038 was appropriated for debt charges and $25,352 for
Calgary, Alta 48.50 45.75 j ■ *• 1 • ti 1 v,
ITT- • TIT on „„ ^^ depreciation, leaving the surplus as above.
Winnipeg, Man 30 22.50 „, j u t 1 ut ^ 4.1. -i. 4. ^u 1 * i„.in
/-. 1 tf T3 /-^ .>i .ir ,ir The gross debenture debt of the citv at the end of 1920
Oak Bay, B.C 31.25 25 a.,n"ni:ii j tu .p^nnuoo. ^ ^u j *
ci • u Tj /-. nr. r./^ was $4,0o9,511, as compared wnth $4,098,234 at the end of
Saamch. B.C 20 20 ir>ir. r,^u 4. 1 j u » 1 u.. \ Ji 1 c \ ^
T-,j , .,. or. r,^ -■- 1919. The net general debenture debt at the end of last year
Edmonton. Alta 39.90 45 ^o■,n,^nr- ■ ^ 4.0 on.i nnc 1 1- ■
V" t r' R C '7Q 9R '^^^ $3,124,107, as against $3,202,905 previously, and is sum-
rs u v. a.^An 0.1 ,n marized as follows: General debenture debt, less sinking
Quebec, Que $1.40 $1.40 - , „.„ „^r. r.o„ -4. . 1. r -i t ■ *. 1
^ , • \T o 'i'\n •i'^n fund, $2,05 (,782; city s share of local improvements, less
r,, '-D ' T.J CI r L/^ r -A siukiug fund, $309,185; ratepayers' share of local improve-
Glace Bay, N.S 5.50 5.o0 , " , . , . . ^ 0.-?- 1 on rn. ■ , • *, , . ^ 1
ments, less sinking fund, $(5 (,139. The sinking fund totals
As interesting as the above figures are, they wouLl be $935,404, as compared with $895,328 at the end of 1919.
more so if the comparison was extended farther back. While Previously it was shown that the amount required for in-
it is not possible to go into detail here of the changes which terest was $196,859, but the 1920 statement gives the figure
have taken place in the various municipalities in recent as $197,639.
years, one is sometimes able to get a rough idea fi-om a At the beginning of 1920 the balance sheet showed a sur-
simple illustration. plus of assets over liabilities of $480,358. By the end of the
Administering Winnipeg civic government this year is year this had been increased to $559,285. Under current
costing 280 per cent, more than it cost in 1909, the first year assets it is shown tht the balance of 1920 taxes unpaid was
in which the present business tax was imposed. The popu- .'813,139, but this hr.'S since been realized upon. Tax arrears
lation of Winnipeg increased 60 per cent. In the same period are comparatively small at $21,467.
May 27, 1921
THE MONETARY TIMES
C.P.R. BUILDING
TORONTO
n011SSERW>0D;e<'>G>Mi»Ny
INVeSTMCNT BANKERS
CANADIAN GOVERNMENT
AND MUNICIPAL BONDS
HIGH GRADE INDUSTRIAL
SECURITIES
12 KING ST. EAST
TORONTO
INSURANCE
Promptly effected in all its Branches
FIRE, AUTOMOBILE, ACCIDENT, LIABILITY, Etc.
Intelligent Advisory Service
OSLER, HAMMOND & NANTON
WINNIPEG
ESTABUSHED 1879
AUoway & Champion
Bankers and Brokers
Member, of Winnipeg Slock Exchange
362 Main Street
Winnipeg
Stocks and Bonds bought
and sold on commission.
Winnipeg, Montreal, Toronto and New York Exchanges
WE OWN AND OFFER
NORTH SYDNEY
6% BONDS DUE 1940
At dSyi'o and accrued interest, to yield 6'i '
Interest due Jsinuary and July.
Denominations. $300 and $1,000
Particulars upon n-qiu's/
Sterling Securities, Limited
162 HOULIS ST.
HALIFAX
c.
14
H.
King
BURGESS & CO.
Government and
Municipal Bonds
Street East - - Toronto
' 1
Dominion Textile Company
Limited
Manufacturers of
Cotton Fabrics
Montreal Toronto Winnipeg
"FOREIGN INVESTMENT"
Canadian investors would do well to study the oppor-
tunities now available in Foreign Government and
Municipal bonds.
Now that the Reparation question has been accepted
by the German Government, we anticipate (urther activ-
ity and increased prices.
The market already shows an upward move and
investors would do well to give immediate consideration.
DO NOT DELAY!
For particulars and quotations, apply to
R. M. HEFFERNAN & CO., Ltd.
Jackson Building, Ottawa
42
THE MONETARY TIMES
Volume 66
Government and Municipal Bond Market
Four Provincial Issues Were the Centre of Attraction This Week— Manitoba
Made One Loan in Canada and Another in the United States — Victory Bonds
Were Mostly Stronger — Hamilton Citizens Are Subscribing for Their Own
Debentures — Two Quebec Municipalities Are in the Market for Funds
LAST week was an interesting one in the bond market, four
provincial issues being the centre of Extraction. As was
anticipated, and hoped, the Manitoba issue of $2,000,000
was purchased for United States disposal, but the province
also sold another large block, with which the Canadian
market will now have to contend. It w&s hoped that the
Manitoba bonds would go to the United States market, for
the reason that it would relieve the Canadian situation some-
what, so that the additional issue has come at a rather un-
fortunate time.
It is not hard to see how interest rates have stiffened
lately, as a result of the numerous and large blocks of se-
curities which have been sold by our provinces and
municipalities, and with Toronto's $5,000,000 and others
yet to come, rates will no doubt hai-den still further,
for there are still some large amounts of recent issues that
have not been digested. Victory bonds were mostly stronger,
as the following table will show: —
Control Close Close Close Close
price. Jan. 26. Mar. 2. May 18. May 25.
1922 98 98% 98i4 98.50 99.20
1927 97 98 97V2 98.00 98.00
1937 98 99% 99% 99.00 99.15
1923 98 98% 98 98.10 98.25
1933 96% 98 98% '97.35 97.00
1924 97 96% 96% 97.60 96.50
1934 93 9514 95% 94.95 95.00
The $2,000,000 issue of Manitoba is now being sold in
the United States to yield investors a little over 7.20 per
cent. In April Manitoba bonds were selling in the United
States to yield 7% per cent. The Ca^nadian issue is being
offered at 98.29, to yield 6.15 per cent.
Edmonton's securities, on which Messrs. Wood, Gundy
and Co. hold an option, are being offered at a price of 99,
to yield 7.10 per cent. The Dominion Securities Corporation,
holding an option on $1,000,000 of Alberta 6's, and these are
being advertised to yield 6.25 per cent., which is the same
rate as the issue which was made in April.
Reference wa.s made in these columns last week concern-
ing Newfoundland's $4,500,000 loan. On account of the good
demand for these bonds in New York, the issue was increased
to $6,000,000. It is understood that a small block was dis-
posed of in Canada to yield the investors 6.10 per cent.
Coming Offerings
The following is a list of debentures offered for sale,
particulars of which have been given in this or previous
issues: —
Tenders
Borrower. Amount. Rate S^r. Maturity. close.
Renfrew, Ont $ 42,404 Var. Various May 31
Toronto, Ont 5,000,000 6 Serials June 1
Alameda., Sask 6,500 8 10-instal. June 1
Lac du Bonnet R.M.,
Man 10,000 June 1
Wallace R.M., Man. . 11,120 6 Serials June 3
Saskatoon, Sask 204,000 5 & 6 Various June 6
St. Lambert, Que 500,000 6 30-years June 6
La Tuque, Que 300,000 6 5-years June 6
Westboume R.M., Man. 60,000 '6 30-instal. June 7
Vermilion, Alta 10,000 7 20-instal. June 11
Wallace R.M., Man. — Offers will be received until 6 p.m.,
June 3, 1921, for $11,120.11 6 per cent, bridge debentures.
which mature from May 1, 1929 to May 1, 1937. W. White-
ford, secretary-treasurer.
St. Lambert, Que. — Tenders will be received up till 8
p.m. June 6, 1921, for the purchase of $500,000 6 per cent,
bonds, maturing May 1, 1951. Securities are in denominations
of $1,000. (See advertisement elsewhere in this issue.)
Lac du Bonnet R.M., Man. — An issue of $10,000 good
roads debentures, being the first part of a total issue of
$50,000, is being offered for sale, and tenders will be received
until June 1, 1921. The debentures are in small denomina-
tions. W. D. Halliday, secretary-treasurer.
La Tuque, Que. — Tenders will be received until June 6,
1921, 5 p.m., for the purch&se of $300,000 6 per cent, de-
bentures, dated November 1, 1920, and maturing five years
from that date. Interest is payable semi-annually. May and
November, and the securities are in denominations of $100i
E.nd $500. (See advertisement elsewhere in this issue.)
Debenture Notes
York Township, Ont. — The council has passed a by-law
to provide for the issue of debentures to the amount of
$80,000 for school purposes.
Regina, Sask. — As soon as ratepayers have approved of
the issue of $213,054 debentures, for various local improve-
ments, tenders will be caJled. Voting takes place on June
14 next.
Edmonton, Alta. — On June 15 next, ratepayers will be
asked to vote on the following by-laws, which have been ap-
proved by the council: $275,000 7 per cent. 20-year deben-
tures, for equipment for power plant; $168,828 7 per cent.
20-year debentures, for extension to civic telephone system;
$38,000 7 per cent. 20-year debentures, for street pavement
construction already completed; $28,000 7 per cent. 8-year
debentures, for boulevard construction already completed.
Saskatchewan. — The following is a list of authorizations
granted by the Local Government Board from May 7 to 14,
1921:—
Schools. — 8 per cent. — Kilmory, $3,800 10-years annuity;
Ernfold, $3,000 10-years annuity; Schmidtsburg, $1,000 8 in-
stalments; Blackley, $1,200 10-years annuity; Fortuna, $5,700
15-years annuity; Westview, $3,500 10-instalments.
Rural Telephones 8 per cent. 15-years annuity. — Mani-
tou Lake, $4,800; Darwin, $600; South Maymont, $700;
Tableland, $1,000.
Vilage of Earl Grey, $2,000 8 per cent. 10-instalment,
for sidewalks.
Nipawin R.M., $3,000 8 per cent. 10-instalment, for Red
Cross outpost.
City of Regina. — $20,571 for sewer extensions: $46,722-
■ for water extensions; $25,000 for comfort station; $22,335
for sewage disposal works; $8,225 for plank sidewalks; $102,-
000 for electric light extensions. These are 6 per cent.
sinking debentures, payable from 5 to 30-years.
Bond Sales
Medicine Hat, Alta. — .Emilius Jarvis and Co. have pur-
chased through private sale a. $40,000 bond issue of the city.
The bonds bear interest at 6 per cent., and are payable in
New York. At the purchase price of 87.83 the cost basis is
7.15 per cent.
Saskatchewan. — The following is a list of debentures
reported sold by the Local Government Board from May
7 to 14, 1921:—
May 27, 1921
THE MONETARY TIMES
Canadian Government and
Municipal Bonds
at present prices afford the
investor a substantial interest
return. Security is of the
highest grade, interest can be
collected promptly and con-
veniently, and should necessity
arise for cash, these bonds
will be found to be amongst
the most readily marketable of
all securities.
IVrite for our lalesi list.
Wood, Gundy & Company
Canadian Pacific Railway Building
Toronto Saskatoon
Montreal Toronto New York
Winnipeg London, Eng
■MB.y.4^^^y^^.W#^^»
One Way
Out
of Canada's railway difficulties
is suggested in the current
number of Investment Items.
You will find this discussion of
the railway problem stimulat-
ing and interesting.
Write for a copy to-day.
Royal Securities
^ 'corporation
LIMITED
MONTREAL
TORONTO HALIFAX ST. JOHN. N.B.
WINNIPEG VANCOUVER NEW YORK
LONDON. Enj.
ii,^i^Akk^y.ii.aeayjr^aay^vx:i.t:/^^^^^^
VV. L. McKINNON
DHAN H. PETTHS
We Buy and Sell
VICTORY BONDS
W. L.
at Current Prices
McKINNON & CO.
Covernmenl and Municipal Bonds
McKINNON
BUILDING -:• TORONTO
Telephone Adelaide 3870
r
•8
Government & Municipal Bonds
Corporation Securities
IVrilc for current,
Lisi of Offerings
W. A. MACKENZIE & CO., Limited
42 KING STREET WEST, TORONTO
*^
■S
The Pulp and Paper Industry
is now Canada's largest man-
ufacturing export industry.
The Brompton Pulp and Paper Co.. Limited, is one
of the oldest and most conservative companies engaged
in this industry.
Send for circular describing the attractive issue of 20"
year 8% bonds being offered at 99 and interest.
R. A. Daly & Oo.
BANK Ol- TOKONTO HLILDI.NO
TORONTO
Province of Ontario
6% COUPON BONDS
Due May 2, 1936
PRICE: 99.50 AND INTEREST
To Yield 6.05%
Harris, Forbes & Company
INCORPORATED
C.P.R. Building 21 St. John Street
TORONTO MONTREAL
THE MONETARY TIMES
Volume 66
School Districts. — Irvington, Sr)0O 8 per cent. 5-yea.rs;
to M. Gannon, of Star City. Halicz, $1,500 8 per cent. 10-
years; to C. A. Broads, of Wynyard.
Hillsborough R.T., $800 8 per cent. 12-years; to Nay
and James, Kegina.
Hamilton, Ont.— During the past few days citizens have
subscribed for $60,000 worth of city debentures, ranging
from five to twenty yesrs, and bearing interest at the rate
of 6 '72 per cent. City Treasurer W. H. Davis ever since as-
suming office strongly urged the absorption of local deben-
tures by citizens. The latest parcel of debentures included
a block of $63,000 for improvements to the West Avenue
School, and $70,000 for extensions to the watei-works system.
It is expected that the balance of the issue will soon be
absorbed.
Owen Sound, Ont— The National City Co., Ltd., have
purchased $74,714 6 per cent. 15-year locrJ improvement
debentures at a price of 96.61, which is on about a 6.37 per
cent. basi". McLeod, Younc. Weir and Co. was a close
second with a bid of 96.59. The list of tenders is as follows:—
National City Co.. Ltrl 96.61
Mi'Leod, Young, Weir & Co 96..59
Dynient, .•\nderson & Co 96.07
C. H. Burgess & Co 96.03
A. E. Ames & Co 95.81
Dominion Securities Corp 95.76
T. S. G. Pepler & Co 95.72
Canadian Debentures Corp 95.63
Brent, Noxon & Co 95.41
R. C. Matthews & Co 95.11
Wood Gundy & Co 94.64
United Financial Corp., Ltd 94.375
Manitoba. — Two issues were disnosed of by the pro-
vince this week. One was for $2,000 000 payable in the
United States, and the other was for $2,530,000 payable in
Canada only. Both bear 6 per cent, interest, and the former
matures in 10 years and the latter in 20 years. The pro-
vince called for alternative bids for $2,000,000 6 per cent.
10-year bonds payable in America and 20-year bonds payable
in Canada only, and the following offers were received: —
20-year Canadian bonds.
A. E. Ames & Co., United Financial Corp., Ltd., and
R. C. Matthews & Co 96.55
Dominion Securities Corp 96.331
C. H. Burgess & Co., McLeod, Young, Weir & Co.,
Canadian Debentures Corp., Ltd., Macneill, Gra-
ham & Co., and Nesbitt, Thompson & Co 95.813
Wood, Gundy & Co 95.78
Harris, Forbes & Co., Inc., and National City Co., Ltd. 95.42
A. Jarvis & Co 94.66
W. A. Macken;-,ie & Co., a^nd R. A. Daly & Co 94.27
10-year American bonds.
Wood. Gundv ^f- Co., National City Co., and E. H.
Rollins & Sons 99.29
Halsey. Stuart & Co., First National Co., and the
Minnesota Loan & Trust Co 99.178
W. A. ME.ckenzie Sz Co., and R. A. Daly & Co 98.84
Harris, Forbes and Co., Inc 98.764
A. E. Ames &> Co., Blair & Co., Kissel, Kinnicutt &
Co., and Illinois Trust & Savings Co 98.70
Dominion Securities Corp 98.441
A. .Jarvi.t; & Co., Continental Trust Co., and Wells-
Dickey Co 98.05
United Financial Corp., Ltd., and the Bankers Trust
Co 97.691
The highest bid for the 10-year issue was considered
the best and the award was mrde accordingly, the province
thereby paying, for the nresent at least, about 6.09 ner cent.
for its money, computing on the price paid in Canadian
funds, which was 99.29.
Later, the province decided to make another i«^5:ne. and
arra-ngements were made with the syndicate which bid the
highest for the 20-year bonds, and $2,580,000 6 per cent,
securities of that maturity were taken up at the price of
96.55, which means that the province would pay about 6.31
per cent, for its money.
The $2,000,000 block is for refunding treasury bills, and
the other is for meeting part of capital expenditures passed
at the If-'St session of the legislature.
Lethbridge, Alta. — Wood, Gundy and Co., and the Do-
minion Securities Corporation, have been awarded $2,400,000
6 per cent. 30-year bonds of the Lethbridge Northern Irri-
gation District at a price of 93.71, which is on about a 6.48
per cent, basis. The bonds aa-e guaranteed by the province
of Alberta, and are payable in Canada and New York.
Pembroke, Ont. — C. H. Burgess and Co. have been
awarded $80,324 6 per cent. 10, 20 and 30-year debentures, at
a price of 95.662. Tenders were as follows: —
C. H. Burgess & Co 95.662
Wood, Gundy & Co 95.08
A. E. Ames & Co 94.69
R. C. Matthews & Co ■. 93.61
CREDIT MEN'S TRUST ASSOCIATION
At the annual meeting of the Canadian Credit Men's
Trust Association held in Winnipeg on May 19, new directors
were elected as follows: J. M. Coutts, of Campbell Bros,
and Wilson; D. J. Grant, Western Canada Flour Co.; F.
W. Burrage, McClary Mfg. Co.; F. Burt, John W. Peck and
Co.; H. W. Asleton, Thomas Ryan and Co.; F. W. Roach, St.
John, N.B.; D. A. Clark, Clark Brothers and Co.; Thomas
W. Leary, Toronto; J. L. Hiltos, Moose Jaw, Sask.; James
Perry, Codville Co., and John M. Doyle, Vancouver, B.C.
In addition to the new directors the following will serve
for another year: J. J. Corbett, Miller, Morse Co.; R. W.
Pollock, Dominion Rubber Co.; C. E. Rowed, National Drug
and Chemical Co., and T. E. Howald, of Gaults Ltd. Herbert
Reade and Co. were appointed auditors for the ensuing year.
CHANGES IN STEAMSHIPS DIRECTORATE
At the annual meeting of the Canada Steamship Lines,
Ltd., in Montreal this week, several important changes were
made in the directorate. H. W. Cowan retired from the posi-
tion of director of operations to become president of G. U.
Price and Co., Ltd., the well-known English insurance cor-
poration, and the vacancy thus caused was filled by the ap-
pointment of Dr. W. L. McDougald, president of the Century
Coal Co., in which the Steamship Lines is interested. The
vacancy caused by the retirement of Sir Henry Pellatt was
filled by the appointment of Tancrede Bienvenue, vice-
president and managing director of the Banque Provinciale.
F. S. Isard, formerly comptroller of the enterprise, takes
over the general managership from J. W. Norcross, who re-
tains the president's office. During the year Roy JL Wolvin
succeeded C. A. Barnard, K.C., retired, so that the board of
the coming vear consists of J. W. Norcross, F. S. Isard. W.
E. Burke, H. H. Smith, D. B. Hanna, J. P. Steedman, Geo.
H. Smithers. Hon. J. P. B. Casgrain. J. E. Dalrjnnple, Ed-
mund Bristol, Frank Carrel, M. J. Haney, Roy M. Wolvin,
Dr. W. L. McDougald, and Tancrede Bienvenue.
"Canada's Northern Oil Fields" is the title of a pamphlet
just issued by the New York agency of the Union Bank;
copies may be secured on reauest. It relates the discovery
of oil at Fort Norman, describes the geology of the region
and discusses the economic sifrnificance of the discovery. In
conclusion, it is pointed out that while the Mackenzie fields
are in their infancy, and while their development is no poor
man's game, yet success is likely.
Mav 27. 1921
THE MONETARY TIMES
$25,000
CITY
OF HALIFAX,
5; % BONDS
N.S.
Due Jul)) hi.
953 Denomma
iwns, $1,000
Pri
abl
1 :ipal and semi-annual interest pa>
e at Toronto, Montreal, Halifa,
Price
: 92.85 and accrued interest |
Eastern
YIELDING 6%
Limited
Securities Company,
ST. JOHN
N.B. HALIFAX, N.S. 1
PROVINCE OF ALBERTA
6% BONDS
Due 1st April, 1936
Price 97.59 and Int.
Yielding 6 '+ ;
BOND DEPARTMENT
The Canada Trust COi*vrANY
14 King St. E. - - - Toronto
MACAULAY & NICOLLS
INSURANCE OF ALL CLASSES
ESTATES MANAGED
746 Hastings Street - VANCOUVER, B.C.
C H \1A:ALLAV J p. NICOLLS. Notary Public.
J. A. THOMPSON & CO.
Government and Municipal Securities
Western Municipal. School and Saskatchewan Rural Tele-
phone Co. Debentures specialized in.
COKKESPOMIK.NCl-; I\\ ITKl)
Union Bank Building - WINNIPEG
X
Waghorn Gwynn & Co., Limited
Stock and Bond Brokers
Financial Insurance, and Real Estate Agents
VANCOUVER
A. J. Pattison Jr. & Co.
Specialista Unlisted Securities
lOe BAY STREET - - - TORONTO
OLDFIELD, KIRBY & GARDNER
INVESTMENT BROKERS
WINNIPEG
Branches-SASKATOO.N ANU CALGAKY.
Canadian Managers
Investment Corporation of Canada. Ltd.
London Orticc; 4 Great Winchester St.. EC.
(dc/c(M^u/ ry. ^La
09^
ALL CLASSES OF INSURANCE WRITTEN
.T« .uOOR. -A»^-or.c 0.11-Oir.G. MOOSE JAW. SasK.
H. M. E. Evans & Company, Limited
FINANCIAL AGENTS
Bonds Insurance Real Estate Loans
Union Bank Bldg., Edmonton, Alta.
BROOK & ALLISON
Real Estate Loans and Insurance
RENTAL AGENTS VALUATIONS MADE
REGINA, SASK.
LOUGHEED & TAYLOR, Limited
IM'EST.MENT SECURITIES
210 Eighth Avenue West
CALGARY ALBERTA
McARA BROS. & WALLACE
investments insurance
inside and warehouse properties
REGINA
MAHAN-WESTMAN, LIMITED
FINANCE INSURANCE REALTY
432 Pender Street, W., Vancouver, B.C.
Dr. J. \V. .MAHA.N J. A. \VEST.MA.\
President .Manafting Director
TOOLE, PEET & CO., Limited
INSURANCE AND REAL ESTATE
MORTGAGE LOANS ESTATES MANAGED
Cubic Address. Topee Wistcin In. and A. B.C.. 5th Edition
CALGARY, CANADA
THE MONETAKY TIMES
Volume 66
CORPORATION SECURITIES MARKET
Slight Reaction in Canadian Stock Prices— Ten Per Cent.
Bonus Declared on Burt Common — Acadia Sugar
Shareholders to Decide on New Bond Issue
THE healthy optimism which started to make its appear-
ance in the Canadian stock markets recently, was some-
what liiminished this week, and many issues which had made
advances suffered slight reaction. As far as can be seen
home news was not any woi-se; in fact, there were some
factors which should have acted favorably upon prices, but
which only affected thos^ issues which were directly in-
volved.
Declar.ation of a ten per cent, cash bonus on Burt com-
mon was interpreted a.A being a singular case and not applic-
able to general conditions. The rise in Dominion Textile on
the report of the approach of some attraction to shareholders
was very limited in its effect. In reality, there is no reason
why the good position of Dominion Textile or F. N. Burt
should affect other companies, but when it is considered how
adverse events of this nature are casting their influence
upon the whole market, it is rather hard to find why senti-
ment does not improve on favorable reports.
When it was announced that the Mattagami plant would
reopen, Riordon common made an effort to regain some of
its recent losses, on the strength of the belief that the im-
proved demand for sulphite would soon be felt by the Riordon
Company, which had closed down its sulphite plant for lack
of demand. A setback was encountered, hovyever, when it
was learned that subscriptions to the new financial scheme
were not being received fast enough, and that unless share-
holders got tehind the company in its present difficulties, re-
organization would be inevitable. This likewise cast its
shadow over the paper section, although the weakness in
pulp and paper securities can be attributed largely to the
condition of the industry as a whole.
Influence to the Canadian stock prices from outside
was distinctly unfavorable. Weakness of foreign exchange
in New York suggested that the European complications had
not yet been entirely settled. New York stocks showed a
decided weakness on the announcement of dividend adjust-
ments by several companies, and the trend of prices indicated
almost an entire loss of the bullish enthusiasm which was
previously present.
Trading was less active, apart from the intervening
holiday, the turnover for the week in Montreal being 31,651
shares of listed stock, as compared with 76.902 in the pre-
vious week, while on the Toronto exchange the turnover was
10,320 shares, compared with 12,558. Bonds changed hands
to the extent of $1,469,610 in Montreal, as against $1,401,920,
■while the figure in Toronto was $816,450, compared with
$1,170,100 previously.
F. N. Burt Bonus
Announcement was made this week by F. N. Burt Co.
of a 10 per cent, cash bonus on common, in addition to the
regular quarterly dividend of 2% per cent. These will be
paid on July 2, and are payable in 'New York funds. This
will mean a distribution to shai-eholders of Burt common of
20 per cent, for the year, or, after allowing for the premium
on New York funds, it will be equivalent to possibly 22%
per cent, to those residing in Canada. The dividend on Burt
common was increased from 8 to 10 per cent, in September,
1920, making 8% per cent, paid during 1920, compared with
7% in 1919, and 6 in 1918. As the Burt preferred is con-
vertible into common, provision is made that any shareholder
who may wish to convert and does so before June 30 will
receive the new bonus on common stock.
The regular quarterly dividend on preferred stock was
declared at the annual meeting of the Canada Steamship
Lines, Ltd., this w-eek.
An extraordinary general meeting of the shareholders
of the Acadia Sugar Refining Co. has been called for Halifax
on May 29th next, to consider a proposed issue of $2,000,000
6 per cent. 10-year second mortgage bonds. The directors in
a note accompanying the formal notice say that after care-
ful consideration they have come to the conclusion that it is
imperatively required for hypothecation purposes.
Securities of the British Empire Steel Corporation were
listed on the Montreal and Toronto exchanges on May 23.
The securities listed were: $19,950,000 first preferred, series
B. $57,350,000 second preferred cumulative 7 per cent., and
$24,000,000 common. Trading was not very active and prices
•were slightly weaker. The old shares of Dominion Iron and
Scotia will continue to be quoted as long as there is trading
in them.
The available stock of Howard Smith Paper Mills, Ltd.,
was increased for trading purposes last week by $1,000,000
worth, or 10,000 shares, making a total of $4,000,000, or
40,000 shares. This was the new stock issued at par in
November last, but not considered as paid up, and therefore
eligible to be exchanged for script until May 15. An exten-
sion of time to June 2 has been given bondholders of Toronto
Paper Mfg. Co., to exchange their 6 per cent, securities for
the new 7 per cent, bonds.
The Shale Brick Co. of Canada, Ltd., Toronto, Ont.,
which is incorporated under a Dominion charter, has been
authorized to increase its capital from $1,600,000 to $2,000,-
000 by the issue of 4,000 preferred shares. Supplementary
letters patent have also been issued to the company authoriz-
ing the change of name to the Cooksville Shale Brick Co.,
Ltd.
The Heart Stooker Co., Ltd., which was incorporated
last March under a Canadian charter, with a capital of $2,-
000,000 and head office at Edmonton, Alta., will shortly sell
stock publicly through R. J. McGivern and Co., Ltd., of Van-
couver and Edmonton. The company, which owns the patent
rights for Canada. United States, Australia and Argentine,
for a machine known as a grain stooker and shocker, does
not plan to erect a plant or office buildings at the present
time, but intends to have parts made and the machine as-
sembled at the most convenient points.
F. H. Manley and Co., investment bankers and bond
dealers, have moved to new offices at 200a Transportation
Building, Montreal.
UNLISTED SECURITIES
Quotations furnished to The i
, & Co., Toronto
Bid
Ask
122
140
75
82.50
80
85
7
10.50
31
32
93.50
99
70
24
51
74
82.50
63
68.50
96
m
107
16.25
22.50
60
69
52
57
91
95
'99'
Bid
Ask
40
62
67.50
26
88 25
91.25
86
91.50
89
11.75
14.50
80
50
53
52
45
55
89
95
97
100
88
105
108
61
68
74
80
4.50
Bid
Ask
3.50
5.25
35
42.50
68
■95
15
22
37
7
11.50
83.25
90
58
63.25
40
85
91
3
3.75
78
S5
90
122
124,50
3
4
24
26
77
82
Alta. Pac. Grain... .com.
" " " ....pref.
Ashdown Hardware 5's.
British Amer. Assurance
British American Oil...
Burns. P. 1st MtKe. 6-s..
Can.Crocker-Wheeler.pf.
Can. Machinery com.
.... pref.
6's.
Can. Oil com.
Can. Salt 6's.
Can . Westinghouse
Can. Woollens com.
......pref.
Cockshutt Plow pref. 7%
CollinsvvoodShipb'dg . 6"s
Oavies William .fi's
Dominion Fire
Dom. Iron SSteelS's 1939
Dom. Power com.
■■ pref.
Dunlop Tire pref.
" 6's.
Eastern Theatres. . . com.
Famous Players pref.
Goodyear Tire. ...7% pffl.
G'rd'n. Ir'nsideS Fare6's
Gunns. Limited pref
Harris Abattoir 6's
Home Bank.. X D 13%. ..
International Milling. 6's.
Imperial Oil
King Edward Hotel.com.
" ..7's.
Loew's. Buffalo . . . com.
Loew's, London. . . .com.
Manufacturers Life
Maritime Coal & Ry, bds.
Massey-Harris
Mattagami Pul p com.
Merchants Fire
Mexican Nor. Power. .5's
Morrow Screw 6's
Murray- Kay pref.
National Life
Neilson. Wm 6's.
North American Pulp.. . ,
Nova Scotia Steel 6% deb
Ont. Pulp 6's
Provirciale Bank
Riordon.. com. (new stk.)
.. pref. (new stk.l
R.Simpson... pfd.
Southern Can. Pow. pref.
Sterling Bank
Sterling Coal com.
Toronto Paper 6's.
Toronto Power. 5's (1924)
Trust & Guar
United Cigar Storescom
.pref
Western Assurance
Western Grocers. . .pref,
WhalenPulp com
" ...7% Deb
May 27, 1921
THE MONETARY TIMES
WE OFFER
Alberta Municipal District
AND
Rural School Bonds
Maturing serially in 1 0 to 20 yean.
To yield 7i% to 8%
W. Ross Alger & Company
INVESTMENT BANKERS
Royal Bank Chambers Bank of Toronto BIdg.
CALGARY EDMONTON
$100,000
City of Charlottetown
Prince Edward Island
5% Bonds at 90 and accrued interest
\)ielJing Bracticall}) 5.90%
Interest payable at par at any branch of the Union
Bank of Canada. Bonds dated December 1,
1919, maturing December 1. 1939.
STANDARD BOND CORPORATION, Ltd.
Maritime Trust Bldgf., Halifax
The Bond House of British Columbia
WE ARE :N THE MARKET FOR
Early Maturity Government and
Provincial Bonds
PAYABLE NEW YORK FUNDS
Wire at our expense any offerings also any British
Columbia Government and Municipal issues
BRITISH AMERICAN BOND
CORPORATION LIMITED
Vancouver, B.C.
Victoria, B.C.
ACCOLJJNT BOOKS
Loose Leaf Ledgers
BINDERS, SHEETS and SPECIALTIES
Full Stock, or Special Patterns made to order
PAPER STATIONERY, OFFICE SUPPLIES
All Kinds, Size and Quality, Real Value
THE BROWN BROTHERS limited
Simcoe and Pearl Streets
TORONTO
\^
rE have 450 good busi
/ portion of Alberta.
Store to a small Con
Everything
fectionery
e in
from
he central
a General
If you v^anl a business
n Alberta yu
u want js. 1
WHYTE & CO., LIMITED
111
Su.inetf
Pantages Building
Srot.r.
- Edmoi
iton
Alberta
Economical Mutual Fire Ins. Co.
HEAD OFFICE KITCHENER. ONTARIO
C.^SH A.M) .MLTLAL SVSTE.MS
Tor.\i. ASSKTS. §375,600. Amount of Risk. 828,641,000
Government Dki'o.sit, $50,000
Fidelity Securities Corporation^ Ltd.
STOCKS, BONDS AND ALL HIGH-GRADE SECURITIES
Specializing in Dividend-paying Oil Stocks
518 Standard Bank Building,
Vancouver, B.C.
Uranch Offices—
Winnipeg
Victoria. B.C.
BRITISH CANADIAN TRUST COMPANY
Head Office
Lethbridge, Alberta
ADMINISTRATOR EXECUTOR TRUSTEE
OFFICIAL TRUSTEE UNDER BANKRUPTCY ACT
NIBLOCK & TULL, Limited
STOCK. BOND and GRAIN BROKERS
(Direct Private Wire*
Grain Elxchange
Calgary, Alta.
GRANT, WHYTE & CO., LTD.
STOCKS AND BONDS
HIGH-GRADE INDUSTRIAL SECURITIES
WINCH BUILDING - VANCOUVER. B.C.
Cable Adttr
ess. ■Eslaus.- Calgary.
Coile: Western Union.
Bankers : Lnivn Bunk of C
Kuula.
J.
H.
GOODWIN
LIMITED
FINANCIAL AGENTS |
Molaona
Bank Building
CALGARY. Alta.
fAk.m
LANi:) CITY I'ROI'ERTIES
.MORTGAGES
.MINING PROPERTIES ESTATES M.AN.AGEU j
RENTAL AGENTS VALUATIONS
FIRE INSURANCE |
((
Th
e
M
one
tary
T
imes"
will be sent you for four moi
our TRIAL SUBSCRIPTION p
iths
Ian
on
for
$ 1
.oo
Jl
ist sen
d a
doll
»r bill a
nd your name
and address.
THE MONETARY TIMES
Volume 66
MONETARY TIMES WEEKLY STOCK EXCHANGE RECORD
MOXI'KKAL— Mfck Kiiileil May asili.
iMdiitieul Klgures^upi'lietl by lll'KNE'l-i" & fO.. members Myiitieiil
9l«ck8
AbitibiP.&P
" pfd.
Asbestos Corp
pfd.
Anies-Holden pfd.
Atlantic Sugar
Bell Telephone
Brazil!!
•ight
iT.L.S Power
. Steel
■• 2nd pfd,
B.C. Fish
Brompton Pulp & P. . -
Canada Cement
•• ...pfd
Canadian Car
• ....pfd
Can. Con
Can. Cottons
pfd
Canadian Gen. Elec...
Can. Steamship
•• •• pfd.
•• ■• Deb.
•■ " Vot. Trust
Carriage Pact
Con. Mining & Smel...
Det. Rys
Dominion Bridge
Dominion Glass
■• ...pfd.
Dom. Iron pfd.
Dom. Steel Corp
..pfd.
DominionTextil
Sales Open High Low Close
Howard Smith
Illinois Tract
Lake of the Woods
Laurentide
Lyall
Macdonald Co
Mont- Cottons
.pfd
Montreal Power
Tram
" ..Deb
Telegraph..
National Breweries....
Ogilvie pfJ-
Ontario Steel
Penmans
pfd.
Price Bros
Quebec Ry. L. H.& P..
Riordan PulpS P
ShawiniSanW.&P
St. Maurice
Sher.-Wms
■■ pfd.
Spanish River
" pfd.
Steel Co. of Canada...
•• •■ •• pfd
Toronto Ry
Tuckett....
Wabasso
Wayagamack P. & P..
Windsor Hotel
Winnipeg Ry
ICniiks
Commerce
Hamilton
Hochelaga
Merchants
Molsons
Montreal
Nationale
Nova Scotia
Royal
RniMis
Asbestos Corp
AmesHolden
Bell Telephone Co. .
Can. Cement
Can. Felt
Can. Rubber
Cedars Rapids Mfg
City Mont. Dec. 6s, 1922
•' Mayfi's, 1923
■■ Sept.6's.l92,-i
Dom. Can.W. Loan. 1925
Victory Bonds. 1924..
1934.,
1922.,
1927.
1937.
1923.
1933.
soon
2000
1500
1300
15000
2000
100
2,S09
1816
5867
20036
50168
IS486
6075
7466
71469
26886
MOHTKKAl-Continiied.
Dom. Canners.
Dom. Cottons .
Dom. Iron
Dom. Textile.
Kar
StRlU
Lake of Woods..!
Mont. Tramways.
National Brewerie
Ogilvie Flour
Ontario Steel
Sales Open High Low Close
ans .
Price Br
Quebec Ry.L.H.&P..
Riode Janiero
96.40
94.75
94.20
Sherwin-Williams...
Steel of Can
Wayagamack P. & P.
Winnipeg Elec
TOUOtlT»— Continued
TOKOSTO— Week Ended May !J.-.tli.
Bell Telephone
...rig
Brazilian Traction.
B.C. Fish
Br. Am. Steel
Burt. F. N
Can. Bread,
Canada Cem
Canners.. . -
Canadian Pacific R.
. Ele
pfd,
Canada Steamship
pfd
.Vot. Trust
City Dairy
• pfd.
Con. Gas ,
Dome
Dom. Tele
Duluth
Mackay Companies
" ....pfd
Maple Leaf
" pfd
Monarch pfd
Nioissing
N.S. Steel
Porto Rico
Quebec R.L.H. & P....
Riordon
461 112
100
25i
Sawyer-Massey.
Smelters
Spanish River. .
Tooke
Toronto Ry. .
Trethevvey.. .
Tucketts
Twin City..,.
Winnipeg Ele
Banks
Commerce
Dominion
Hamilton
Imperial
Merchants
Montreal
Nova Scotia....
Royal
Standard
Toronto
Low Close
War Loans
Dom. Can.W.Loan. 1925
1931
" " " 1937
Victory Loan 1922
1923
1927
1937
1933
1924
1934
Sales
Open
High
Low
94.90
9000
94.90
95
42300
93.10
93.10
93
!0%00
96.75
97.30
96
28150
99.15
99.40
98-90,
43000
97.80
98. iS
97.801
5O1O0
98.10
98,30
97.751
I8730C
99
99.25
98.90i
12745C
97
98
97
8520C
96,50
9B,7C
96. so!
111000
94.95
95.05
94.95'
93.10
97.25
99.20
98.25
WIMNIPEJJ— Week ended May
Victory Loan 1922..
" 1923..
" 1924..
" 1927..
" 1937..
" 1933..
" 1934.
War Loan 1925 . . . .
" 1931 ....
" 1937....
Great West Perm..
96.75
95.1,=
99.50
98., 50
99.80
98.50
97.50
96 96 25
94.75 95.10
94. 20! 99,50
97.10 9S,10
.Per
Dom. Sav
Lon. scan
Real Estate
Toronto Gen. Trusts.
Toronto Mtg
Union Trust
IConds
Can. Bread
Penmans
Porto Rico
Rio. Jan. T.. L. & P..
Sao Paulo
70i
I84i
2R600
17800
1U350
885
9300
12700
37240
98.85
97.95
96.70
97.90
99.20
97.15
94.85
96.70
97.90
99.30
97.20
Low
98.85
97.95
96.4
97.75
99.1
97.1
94 85
92.75
Close
98.80
97.95
96.50
97.85
99.30
97.20
94.90
93
NEW YOKK— Week ended MayiLst.
Canadian Pacific
Canada Southern
Nova Scotia S.&Coal.
Granby Consolidated . -
Bonds
Dom. of Can. 5% 1921
5i% 1921
5% 1926
54% 1929
'■ " '■ 5% 1931
Sales Open High Low Close
24000
1 19000
113000
43000
1000
LON'DOHi, Eng.— Week ended May 14lli.
Govt. Jt Ulun,
Alberta 4% deb. 1922..
B.C.4j%
Canada..3*%1930 50..
" ....3% Reg...
" .... 4% 1940-60
" .... 44% 1920-25
Edmonton 5% bds. 23-53
5% debs....
Moose Jaw 4i% deb.. .
Montreal 4j% Reg....
4%Reg.'48-SI
Nova Scotia 34%
N 'vvfoundland 4% 1895
Port Arthur 5% deb...
Quebec 4% deb. 1888.
4% bds. 1934.
Sask- 4% bds
Toronto 34% debs
44% debs ....
ic'ver 4% cons. '50-2
4% deb...
Victoria 4% cons...
3% cons...
34% 1923..
44% deb. '20-25
•• .54% cons....
•■ ei%
inipeg 44% 1943-63
4% cons...
Railways
Can. Nor. 4% deb
" 4%cons.deb.
" '• Pac. 4%deb.
Can. Pac
■• 4% deb,
■• 4% pfd.
G.T.P. Br. 4% bd 1939.
G.T.P.4%deb
G.T.P. 4% 1955
Gr. Trunk 4% guar,
Gr.Trunk5% 1st. pfd..
Gr, Trunk 5% 2nd pfd..
Gr. Trunk 4% 3rd pfd..
Gr, Trunk 4% cons
Gr. Tr. West. 5% deb.,
Ont. & Quebec 5% deb.
P. Gt. East. 44% deb. '42
■ nd.. Flu., Ete.
Can. Car 6 'h bds
Can. Cottons 5% bds. ..
Can. West Lumber 5%
Calgary Power 5% bds.
Shawinigan Water
Can. Bk, of Commerce
Bank Montreal
Sales Open H
6'.!J
62i
594
58i
40ii
40i
29*
291
12?
m
60
58|
73(
734
76*
764
83
S2i
May 27, 1921
THE .MONETARY TIMES
THE WEEK IN PARLIAMENT
Grand Trunk Directors Nominated — Extension of Trade Com-
missioners' Work Forecasted — Much Discussion
on Research Institute
(Special to The Monchiry Times)
Ottawa, May 2(5, 1921.
Thursday, May 19
In House of Commons: — (a) Budget debate continued
by Hon. W. L. Mackenzie King, Hon. Dr. Tolmie, Hon. Chas.
Murphy, and Messrs. Sutherland, Stevens, Rinfret, Lalor,
Gould, Seguin, Lafortune, Campbell and MacNutt; (b) Field-
ing amendment to budget calling on Government to make
substantial reduction in expenditure before resorting to new-
taxation defeated by vote of 83 to 103, and main motion
agreed to on same division reversed.
In Senate: — (a) First and second readings of following
bills: One to incorporate Ensign Insurance Co.. and one to
amend and consolidate (Juebec Steamship Co. .Vets; (b) Third
readings of following bills: Court of International Justice
bill. Conservation Act repeal bill abolishing Commission of
Conservation, bill respecting Central Railway Co. of Canada,
and bill respecting (Jreat West Bank of Canada; (c) Second
reading of bill incorporating (Juebec Union Electric Tele-
phone Co.
Friday, May 20
In House of Commons — (a) First and Second readings
of bills from Senate, one respecting certain patents of .\uto-
graphic Register Systems, Ltd., and one to incorporate Ed-
monton and Mackenzie River Railway Co.; (b) First and
second reading of bill respecting Central Railway Co. of
Canada; (c) Passing of Customs and Inland Revenue reso-
lutions.
In Senate: — (a) First and second readings Calgary and
Fernie Railway Co.; (b) Third reading of bill to incorporate
Fort .Smith Railway Co.
Saturday, May 21
In House of Commons: — (a) First reading of Peniten-
tiaries Act .Vmendment bill to enable industrial work
to be carried on in penitentiaries on a larger scale, provid-
ing for Government departments getting all articles needed
by them from penitentiary when produced there; (b) First
readings of Senate bills, one to repeal the Conservation Act
and amendments and another giving another year for the
(ireat West Bank of Canada (o fullil the statutory provisions
as to capital subscribed, etc.; (c) First reading bill to amend
Special War Revenue .Act; (d) Second and third readings of
Inspection and Sale .\ct amendment bill concerning hay and
straw inspection; (e) First readings of bill to permit perm-
anently manufacture, importation and sale of oleomargarine,
and of bill for better grading of dairy produce.
In Senate: — (a) Third reading of Bankruptcy Act amend-
ment bill.
Monday, May 23
In House of Commons: — (a) Third readings of follow-
ing bills: One to incorporate Edmonton and Mackenzie River
Railway Co., one respecting Great West Bank of Canada, and
one respecting Central Railway Co. of Canada; (b) Concur-
rence in Senate amendments to bill incorporating Fort Smith
Railway Co., and a bill to amend the Bankruptcy .\ct; (c)
Third reading of bill making in each year first Monday of
week containing November 11th, .Vrmistice Day, a public
holiday; (d) .\ir Board estimates passed; (e) First reading
of bill regarding Department of Customs and Excise, chang-
ing name from Department of Customs and Inland Revenue,
providing for certificates of Canadian Trade Commissioners
or Consular agents on invoices from foreign countries, pro-
viding for valuation for duty for customs purposes in cer-
tain cases, providing for valuation for Customs purposes of
foreign currencies in certain cases and providing for licens-
ing of Customs Brokers; (f) Immigration .4ct amendment
bill and Criminal Code Amendment bill read second time.
In Senate: — (a) First reading Hay and Straw Inspec-
tion bill; (b) Third reading Animal Contagious Diseases bill
providing for extension of provisions for compensation for
animals destroyed on account of disease; (c) North-West
Territories bill increasing Council to six members read third
time; (d) First reading Lake of the Woods bill.
Tuesday, May 24
In Senate first sitting: — (a) Second reading Lake of the
Woods bill, establishing control of Lake of the Woods waters
in order to protect Winnipeg and Manitoba power sources.
Wednesday, May 2.5
In House of Commons; — (a) Third readings Chinese Im-
migration .\ct amendment bill, abolishing certificates of iden-
tification for Chinese merchants who can establish their bona
fides, and Copyright bill.
In Senate: — (a) Third reading Lake of Woods bill; (b)
Opposition by Senate to Research Council bill.
Budget Measures Passed
On Thursday last the budget passed by & government
majority of twenty. Since that time most of the bills based
upon the financial proposals contained in the bill have been
passed with a few amendments. The bill proposing to change
the name of the Customs and Inland Revenue Department
to that of the "Customs and Excise" department was note-
worthy because of the plan suggested in it for the certificat-
ing by Canadian Trade Commission or consular agents of
invoices from foreign countries. As this plan would provide
a me&ns of paying for keeping Canadian trade agents abroad,
it is likely that it would be a prelude to the much-heralded
scheme of placing a large number of Canadian trade agents
in the United States.
The following were nominated directors of the Grand
Trunk Railway: Sir Joseph Flavelle, Bart., Toronto; Howard
G. Kelley, president Grand Trunk Rixihvay Co., Montreal;
A. J. Mitchell, vice-president Canadian National Railways;
E. L. Nevvcombe, deputy minister of Justice; and J. N. Du-
puis, merchant, Montreal. These will be elected in place of
five of the present directors to resign, then the remaining
directors will resign, and the new directors will remain in
charge for a short time until the calling into effect of the
Canadia.n National Railways Act placing it under the Cana-
dian National Railway directorate.
Other bills that drew great attention were those relating
to the National Research Council and the repeal of the Con-
servation .\ct. The government has decreed the abolition of
the Conservation Commission, hitherto re.garded as the watch-
dog on Canada's natural resources, on the ground of duplica-
tion of services already existing in the Department of the In-
terior. The Senate is taking strong ground agaiiist the con-
struction of <■• National Research laboratory for scientific
research in the interests of Canadian industry.
THE C ANADA LANDED AND NATIONAL INVESTMENT
CO.MPANY, LIMITED
DIVIDEND No. 137
Notice is hereby given that a Dividend of Two and One-
Half Per Cent, (being at the rate of ten per cent, per &n-
num) on the amount paid up on the Capital Stock of this
Company, has been declared for the quarter year to the
thirtieth day of June, 1921, and that the same will be pay-
able Et the office of the Company, 2:! Toronto Street, Toronto,
on and after the second day of July, 1921, to Shareholders
of record at the close of business on the sixteenth day of
June, 1921.
By Order of the Board.
EDWARD SAUNDERS,
Managing Director.
Toronto, 25th May, 1921. 576
60
THE MONETARY TIMES
Volume C6
Corporation Finance
Riordon Company's Position is Further Outlined in Another Appeal to Shareholders
for Funds— Tuckett Tobacco Company Had' Lower Profits— Labor Trouble and Power
Shortage Impaired Earnings of Dome Mines— Profits of British Empire Steel Corporation
British Empire Steel Corporation. — Combined profit and
loss account of the companies merged under the above name,
for the year" ended December 31, 1920, as filed with the
New York Stock Exchange last week for listing purposes
shows profit, after government war taxes, interest deprecia-
tion and all other expenses of $6,235,127. The detailed ac-
count follows: —
Sales and other revenues $69,681,342
Cost of sales, etc 58,865,096
Balance $10,816,246
Interest 1,701,405
Depreciation 2,366,714
Government taxes 513,000
Surplus $ 6,235,127
This statement carries the figures one year later than
the statement issued in March, and the balance sheet shows
total assets of $173,740,308, compared with $168,736,285 at
the end of 1919.
Dome Mines, Company, Limited. — Labor trouble and
power shortage were two of the important factors which
operated to impair the earning power of the company in the
year ended March 31 last. Net profits amounted to only
$302,479, as compared with $951,984 in the previous period.
During the year the total of 289,789 tons was hoisted. Of
this, 273,700 tons was ore which was sent to the mill and
treated, and 16,089 tons was waste which was dumped on the
surface. The 273,700 tons milled yielded bullion worth $1,-
946,403, the average yield per ton being $7,111. Against this
were operating and maintenance expenditures of $1,239,508,
compared with $930,762 in the previous year. The satisfac-
tory financial position in which this mine stands is seen in
the fact that the net excess of current assets over current
liabilities amounts to $1,539,161, compared with a working
capital of $1,253,025 last year. Total assets have increased
to $7,229,977, as compared with $5,909,318.
The issued capitalization was increased during the year
by $766,670, due to the purchase of the Dome Extension
property, and $233,300, now remaining in the treasury as
against $1,000,000 a year ago. The total authorized capital-
ization is $5,000,000, the same as at the beginning of the
year, and of this $4,706,110 is issued.
Operating costs showed an increase of $1.08 per ton
milled over last year, and they also include an increased
charge of 92.5 cents per ton milled for development, as
against 52 cents last year. During the year an increase of
about 50 cents per shift was granted to employees in an en-
deavor to attract more labor. An ample supply of labor for
operations is now available. In regard to ore reserves, the
report points out the futility of endeavoring to accurately
estimate the tonnage and value of ore bodies in the Dome.
The belief of the general manager is that the limited amount
of development work which it is possible to accomplish has
disclosed ore equivalent in value to that milled during the
past year.
Tuckett Tobacco Company, Limited. — Although earnings
did not match up to the previous year, the company's report
for the year ended March 31, 1921, is satisfactory from many
points of view. Profits for the year, after deduction of all ex-
penses amounted to $255,753, which compared with the higher
showing in 1920 of $333,131, and with $264,114 in 1919.
After payment of preferred dividends amounting to $140,000,
there remained net earnings amounting to $115,753 as com-
pared with $193,131 a year ago and $124,114 in 1919. These
net earnings are equivalent to 4.63 per cent, earned on the
common stock outstanding of $2,500,000; as compai-ed with
7.72 per cent, earned in 1920 and 4.96 per cent, in 1919. After
deduction of common dividends, of which $100,000 were paid
as against $50,000 in 1920 and nothing in 1919, surplus re-
maining was $15,753 as against $143,131 in 1920 and $124,-
114 in 1919, this bringing the profit and loss credit up to
$620,931 against $605,178 in 1920 and $462,047 in 1919.
Turning to the balance sheet shows that in spite of the
trade adjustment and business depression, the company has
maintained a good liquid position. Net working capital, ex-
clusive of sundry investments, amounted to $2,047,615 at the
end of the last fiscal year as compared with $2,028,720 a
year ago. The feature in this connection is the manner in
which current liabilities have been scaled down. This year
they amounted to only $378,273, as compared with $923,298
the previous year, most of the figures representing bills and
accounts payable. Current assets amounting to $2,425,888
compare with $2,952,018 at the end of 1920.
Some of the principal changes in the accounts in the
balance sheet are as follows: —
1921. 1920.
Property $3,023,693 $3,050,205
Investments 69,624 45,853
Inventories 1,855,959 2,330,675
Payables 318,273 863,298
Howard S. Ambrose, the president of the company, in
his report to shai-eholders, points out that the strong liquid
position shown by the company in previous years has been
maintained, and the reduction in inventory has been off'set
by a reduction in bills and accounts payable. Referring to
the decline of $77,378 in profits for the year, he says this is
accounted for by a cessation of export business and a reduc-
tion in price of manufactured tobacco during the latter part
of the year.
Riordon Company, Limited. — In an endeavor to open the
hearts of shareholders and to acquaint their minds more
with the position in which their company is situated, the
Royal Securities Corporation has issued a letter showing
exactly where the Riordon Company stands, and what its
prospects are for the future. The directors of this large
pulp and paper enterprise and all of those who have investi-
gated all of the details are firm in their belief that with suf-
ficient working capital to help the company out of the pit
into which it has fallen, the ambitions of those who were
instrumental in bringing about the expansion of the cor-
poration will surely be realized.
The two main points of the Royal Securities' document
consist in the announcement that in addition to the $5,000,000
offering to shareholders, a further flotation of $3,000,000 of 8
per cent. 20-year first mortgage bonds must be attempted if
the net liquid assets of the company are to be brought up to
the $5,500,000 total stipulated in the previous letter of May
6; and, secondly, in the valuation of the assets of the com-
pany at $42,500,000, a somewhat more conservative figure
than most shareholders entertained. Summarized, the assets
of the company are: —
Pulp mills at Kipawa, Hawkesbury and Merrit-
ton, 1912 appraisal, plus subsequent addi-
tions at cost $22,000,000
Sawmills, land, buildings, machinery and equip-
ment 2,000,000
12,000 miles of pine and pulpwood timber limits. 12,000,000
Investments, including Ticonderoga shares 1,000,000
Net current assets on completion of present
financing 5,500,000
Total
$42,500,000
May 27, 1921 THEMONETARYTIMES 51
Let's Be Reasonable
DOES any reader of this page believe that at this time a re-adjustment of wages
and hours in the printing industry involving an increase in labor costs of
36 per cent, is justified r
"Well," the reader asks, "What are present wages and hours?"
Toronto printers now have a minimum wage scale of §35.20 per week for 48 hours.
This is an increase of 10 per cent, over the scale called for in the agreement now
expiring and was granted voluntarily by employers a year ago.
Their demands now are for a wage of $44 per week for 44 hours.
This is an increase of $8.80 per week for 4 hours less work.
It means an increase in labor costs of v% per cent.
Toronto employing printers feel that they cannot grant these demands, and they
believe that the general public will support them in their opposition to an increase of
from 73 cents per hour to $1.00 per hour to printers, pressmen, bookbinders and mailers,
at the present time and in view of busmess conditions as they now exist.
It is understood that International Union officials at Indianapolis have issued orders to
local unions that the 44-hour week must be the basis of all new agreements.
In this order, employing printers believe that these Indianapolis officials are out of
line with the need which is apparent in e\ ery industry for lower cost of production.
This is not a time for saddling any industry with an additional 36 per cent. labor cost,
and publishers and job printers feel that they are justified — in the interest of the
public — in resisting this unreasonable demand from Indianapolis.
The issue will be decided between now and June 1st. If the Union demands of an
increased wage of $8.80 per week for 4 hours less service are not withdrawn, a strike
seems inevitable.
Pressure, therefore, must be brought to bear upon the officials at Indianapolis. They
must be sho\^n by members of the local union (many of whom feel that they are being
forced to make unreasonable demands) that the (Canadian public which buys the pro-
duct of the printing craft, either in the form of advertising or subscription, does not
look with favor upon an%' ruling which would add so heavily to the cost of that product.
Publi.shers and job printers in loronto want to be fair. This is indicated by their
action in voluntarily raising wages a year ago.
They must, however, in justice to themselves and the public they serve, resist these
impossible demands.
Let's Be Reasonable
An expression of opinion of readers of this paper on the Union's proposals, involving
an increase of 36 per cent, in the labor cost of printed matter is asked. Will you not
write a letter to the editor (not for publication) telling him your vievr of the situation.
This statement is published hy and has received the endorsation of the Toronto publishers who are members of the
Canadian National Newspapers and Periodicals Association
including THE MONETARY TIMES OF CANADA.
m
52
THE MONETARY T I IM E S
Volume 66
As ag-ainst these assets of $42,500,000, on the completion
of the present financing, there will be outstanding $27,000,000
of bonds and mortgages on the combined Riordon and
Gatineau companies, bearing an average rate of interest of
about 7^8 per cent., maturing principally in 1929, 1931, 1940,
and 1942, and provision is made under reasonable restrictions
in the mortgage, which matures in 1940, for the refunding
of bonds and timber limit mortgages, with the exception of
the Gatineau mortgages, which mature prior to that date.
The surplus of assets over bonded liabilities are thus $15,-
000,000, which would be available to back the $10,000,000 of
8 per cent, first preferred shares. The annual interest
charges on all bonds, the letter states, will amount to just
under $2,000,000 a year. Earnings should be suilicient to
meet this. But in case they are not for the years 1921 and
1922 provision is being made to shoulder the deficit.
The letter refers to the query that has often been asked
as to whether the company's holdings of timber lands, while
valuable, are not excessive as compared to the manufactur-
ing capacity and operations of the company, and remarks: "It
is inevitable that some day a large pulp or paper mill, with a
capacity of perhaps 400 tons per day, will be constructed and
supplied from the immense quantities of pulpwood on these
limits and the power obtained from the valuable waterpower
at Chelsea, on the Gatineau River, of an estimated capacity
of 40,000 horsepower, which is owned by the company. It is
the opinion of experienced lumbermen that this reserve for
the future development of the company need not be con-
sidered a material burden because of the fact that, year in
and year out, profits to be derived from the pine lumber
operations alone should be sufficient to substantially offset
the interest chai'ges on this portion of the company's prop-
erties. At the present rate of cutting, this pine lumber busi-
ness should continue for 15 years, and it is obvious that long
before that time, a pulp and paper development must follow
at the right time on a very large scale. To supply the large
and growing market for the products manufactured by the
Riordon Company, many new and similar plants must be
built in years to come, but we do not believe that such enter-
prises can be built up in the future with such advantageous
facilities at any less cost than the foregoing valuation."
THE BANK OF MONTREAL
RECENT FIRES
Loss for Week Totals $624,950, Compared with $1,410,000
Last Week — Town of Bic, Que., Suffered Heaviest Loss
Hie, Que. — May 21 — Four stores, two private residences
and a garage. Loss, $200,000, partly covered by insurance.
Brockville, Ont May 18 — Boat livery of Mrs. Henry
Mathen. Loss, $25,000.
Cornwall, Ont. — May 16 — Goldfield cheese factory. Loss
partly covered by insurance.
Halifax, N.S. — May 20 — Fleming Bi-others' iron foundry
at ?,0 Cabot St. Loss, $25,000.
Hamilton, Ont.— May 22^Two houses at 31 and 33
Hawthorne Ave., owned by W. Webb and John Aldis. Cause,
lightning. Loss, $200.
New Glasgow, N.S. — May 22 — Aberdeen Hospital. Loss,
$10,000.
Ottawa, Ont. — May 18 — Stable and warehouse of J. Alph
Langelier and Kennedy and Co., at 293 Sparks St. Loss,
$4,000.
May 19 — Outbuildings adjacent to Wm. Freedman, Ltd.,
junk shop.
May 21— Residences &t 166, 168 and 170 Cathcart St.,
belonging to Lapointe estate. Loss, $750. Residence and
barns belonging to Richard Payne, of South Hull. Loss,
$7,000.
May 22 — Carpet factory, owned by Therien and Co., at
107 Chapel St. Loss, $130,000; insurance, $10,000 on building.
St. Lambert, Que. — May 24 — Pile of poles belonging to
the Montreal and Southern Counties Railway Co. Cause,
fire crackers.
Sayabec, Que. — May 20 — Fifteen buildings, including the
Dominion Hotel, the Provinciale Bank and several stores and
houses. Cause, explosion. Loss, $175,000.
Sorel, Que. — May 20 — Barn belonging to A. Mandeville.
Loss, $10,000.
Stratford, Ont.— May 21— Plant of the Str&tford Wood-
stock Co. Cause, spontaneous combustion. No insurance.
Toronto, Ont.— May 19 — Scythe Waste Co. store sheds,
69-71 Florence St. Cause, spark from locomotive. Loss,
$3,000.
Windsor, Ont. — May 19 — Auditorium building. Loss,
$35,000.
The swinging back to more normal conditions is vividly
reflected in the semi-annual report of the Bank of Montreal.
All loans accounts with the exception of advances to muni-
cipalities, show large downward revisions since October last,
while circulation and deposits likewise reveal a substantial
falling off.
With regard to the last mentioned accounts, it is shown
that deposits not bearing interest amount to $105,754,451, and
presumablv. this figure includes balances due to the Do-
minion government, for such an account is not shown
separately as in the previous statement. The following fig-
ures illustrate the transition in the bank's general business
since the close of the last fiscal year: —
Oct., 1920. April, 1921.
Current loans in Canada $223,495,472 $206,049,8>!6
Current loans abroad 17,619,853 15.988,753
Call loans abroad 99,017,883 77,946,749
Interest bearing deposits 322,578.613 310,846,487
Dep. not bearing interest 111,739,215 105,754,451
Balance due Dominion gov 17,657,119
Total assets 560,150,812 507,199,946
In the face of these rather drastic readjustments, the
bank has maintained its strong financial position, and the
earning power of this old institution has not suffered im-
pairment. The ratio of quick assets to liabilities to the
public is almost twenty per cent., while the ratio of liquid
assets is somewhat more than fifty-five per cent. Net pro-
fits for the half year amounted to $1,910,077, as compared
with $1,802,585 in the same period last year.
\
ADDITIONAL INFORMATION CONCERNING FIRES
Emerald, Ont. — May 10 — General store of Henry A. Mc-
Ginn was destroyed, with a loss of $5,000. There is a $3,000
insurance in the London Gucorantee and Accident Co.
Manitoba. — During the month of April there were 159
fires in the province, with a loss of $223,412. There were
51 dwellings damaged, and 29 fires in farm buildings. Over-
heated and defective chimneys were responsible for 18 fires,
careless smokers caused 15, and stoves and furnaces were
responsible for 28. During the month there was one fatality.
Vancouver, B.C. — May .5 — The shingle mill belonging to
Joseph Chew Lumber Shingle Mfg. Co., Ltd. destroyed. The
loss is $40,000, with insurance of $48,500 in the Ohio Millers,
Old Colony Insurance Co., North River, Lloyds, Motor Union,
British Crown, Mechanic Traders, Industrial and Richmond
Insurance Co. of New York.
CORPORATION AND GENERAL INVESTMENTS, LTD.
A new firm in the underwriting field, specializing in
industrial bonds and stocks, is Corporation and General In-
vestments, Ltd. It has a Dominion charter, with head office
in Toronto, and capital of $100,000. Branches are being
opened in New York and in London. S. W. Tanfield is a
dii-ector, and D. Crager is manager of the Toronto branch.
May 21, 1921
TKE MONETARY TIMES
AUTOMOBILE OWNERS
INSURING THEIR CARS AGAINST FIRE. THEFT,
COLLISION AND PROPERTY DAMAGE,
KNOW THE BEST THING
IS TO BUI A POLICY IN
FIDELITY-PHENIX FIRE INSURANCE COMPANY
OF NEW YORK
C R- STREET, ('resident
CANADIAN HEAD OFFICE: 17 ST. JOHN ST., MONTREAL. W. E. BALDWIN, Manager
Insurance Company
of North America
CAPITAL $ 5,000,000.00
ASSETS JANUARY 1, 1921 $41,894,329.03
Issues specially desirable forms
of Use and Occupancy, Rental
and Leasehold Insurance
Agents in all the principal cities of
Canada and the United States.
Robert Hampson & Son, Limited
GENERAL AGENTS FOR CANADA
1 ST. JOHN STREET MONTREAL
NEW JERSEY INSURANCE CO.
BALTICA INSURANCE CO.
PENINSULAR FIRE INSURANCE CO.
()1<I-:EKI-!-; X lynch, of Canad,!. l.iMiTEii.
43 Victoria Street
TORONTO
nimBPU HE
^y MEAD OFFICE -WINNIPEG
lisTABLlSHEO
I8S6
Queensland Insurance Co.
Limited
of Sydney.
M.S.W.
Capital Paid Up $2,300,000
AB«et8 Exce
ed $5,000,000
Agents Wanted in Uarep
resented Distr
IC(S
.Manac^krs lOR C
IVADA :
Montreal Agencies Limited
.
Montreal
JAS. 1). CHERRY.
Manager
LAW UNION & ROCK
INSURANCE COMPANY, LTD.
LONDON. ENGLAND
Fire — Casualty — Automobile
Over $10,000,000 invested in Canada
Canadian Head Office
MONTREAL
COLIN H. SWORD. Manager
Toronto Branch
ALF. WRIGHT - Fire Mgr
ALEX. Maclean. Acc. Mgr
Fire and Plate Glass Assurance
Mount Royal Assurance Co.
Head Office: 17 St. John St., Montreal
TORONTO OFFICE: 84 KING ST. E.
p. J. PERRIN, H. C. BOURNE, Supt. Western Dept.
General Manager. H. H. VORk, Inspector for Ontario.
SURPLUS AND RESERVE $1,416,740.57
TOTAL FUNDS 1.708.120.67
GENERAL AGENTS
Shaw & Be(»E, Limited, Toronto, Ont. ; C. H. McFadyen & Co., Ltd.,
Winnipeg, Man. ; Butler Byers Bros., Ltd., Saskatoon, Sask. : J. O.
Miller Insurance Agencies. Ltd., Calsary, Alta. ; Hobson & Co., Ltd.,
Vancouver, B.C. : Duck & Johnston. Victoria. B.C. : Central Agencies,
Ltd., Truro, N.S. : Machum & Foster, St. John, N.B.
Applications for Aeencies in Unrepresented Districts InTited
THE MONETARY TIMES
Volume 66
Established 1865
AGENCIES THROUGHOUT THE WORLD
Fire — Marine — Automobile
General Agents, Toronto
Automobile Department: W. H, HEDGES, Toronto
Manager. M 4006
General Agent Fire Department: G. S. PEARCEY
Head Office for Canada, 36 Toronto St., Toronto
Manager for Canada. C. R. DRAYTON
THE
Wawanesa Mutual Insurance Co.
Head Office : WAWANESA, MAN.
OWNED AND OPERATED BY FARMERS
In Manitoba. Saskatchewan, Alberta and British Columbia.
I nsuring Farm Property only, at the lowest possible cost to the assured.
Assets $ 1,765,897.71
As at Reserve for Unearned Premiums 109.466.98
December Number of Policies in Force 40.749
31st. 1920 Amount of Insurance in Force 93.139.456.00
Increase in Business durmg 1920 9,849.346.00
FARMERS : Why insure in small or weak Mutual Companies, when you
can insure with the Wawanesa Mutual, the largest and strongest
strictly Farmers* .Mutual Fire Insurance Company in Canada.
AGENTS IN ALL LOCALITIES
This Company has no connection with The Western Canada Mutual Fire
Insurance Association, or any other combination of Mutual Companies
Incorporated 1851
Marine, Auto-
rire
WESTERN
ASSURANCE COMPANY mobile. Explosion,
Assets over $8,30(i.(10l. 0(1 ""''*• ^'"j" .V^^-
Losses paid since organization " 77.7()(i.(i(«).iui motions and Strikes.
Head Offices: TORONTO. Ont.
W. B. MKIKLE, C. S. WAINWRIGHT. A. R. PRINGLK.
President nnd General Mftnaper Secretary Canadian Fire Manatrer
FOUNDED AD. I7I0
Sun Fire
THE OLDEST INSURANCE CO. IN THE WORLD
Canadian Branch ... Toronto
LY.MAN ROOT. .ManaRcr
sr
Do You Believe
in Canada?
If you do you believe in patronizing
Canadian companies in preference to
all others when their goods and prices
are the same, and you will insure in
THE CANADIAN FIRE INSURANCE CO.
HEAD OFFICE, WINNIPEG
AGENTS EVERYWHERE
THE Incorporated 1875
MERCANTILE FIRE
INSURANCE COMPANY
THE NORTH EMPIRE FIRE INSURANCE Co.
HEAD OFFICE: WINNIPEG. MAN.
Toronto Office: 218 Confederation Life Bldg.
J. E. HOUNSOM, Manager
The LONDON ASSURANCE
Head Office. Canada Branch, .MONTREAL
Total Funds exceed S42.500.000
Established A.D. 1720. FIRE RISKS accepted at current rates
Toronto Agents, Armstrong DeWitt & Crcssin, Ltd.. 36 Toronto St.
THE UNITED ASSURANCE COMPANY
Fire, Hail and Automobile Insurance
Branch Office-MOOSEJAW.Sask. Head Office — CALGARY, Alberta
FIRE CASUALTY
The Northern Assurance Company, Limited
of London. England
Assets. S79,801.255.00
Head Ottice for Canada :
Room 3IJ6 Lewis Bldu.. 17 St. John Street. .Montreal
G. E. MOBERLY. Manager
A. HURRY. Manager. Casualty Department
British America Assurance Company
FIRE, MARINE, HAIL and AUTOMOBILE
Incorporated iS33
HEAD OFFICES: TORONTO
and General Manager
Secretary
over $ 4.300.000.00
over $47,500,000.00
CALEDONIAN- AMERICAN
Insurance Company o
New York
Head Office for Canada
MONTREAL
JOHN G. BORTHWICK
.Manager
BRYCE B. HUNTER -
Resident Agent
H. W. RANDLE. Ins
pector
51 Yonge Street, Toronto
Telephone Main 31
Waterloo Mutual Fire Insurance Company
ESTAB
1S63
Head Office - Waterloo, Ont.
Total Assets 31st December, 1918, over 81.000,000.00
Policies in force in Western Ontario, over 30,000
HF The Monetary times
1
M66
V.66
no. 1-21
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