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< BU ' MBBMX ESTABLISHED 1839 , JUL 6 Reg. U. 8. Pat. • IN 2 SECTIONS — SECTION 2 1959 o Office jL Convention Number New York 7, N. Y., Thursday, July 2, 1959 Price 50 Cents a Copy \ ^ . Thursday, July 2, 1959 THE COMMERCIAL and FINANCIAL CHRONICLE OFFICERS 1959-1960 -X VICE-PRESIDENT VICE-PRESIDENT VICE-PRESIDENT PRESIDENT B Norman J. Alexander James Richardson & Sons, Winnipeg J. Douglas Dominion Corpn. Bulgin Limited, R. A. Rodolphe B.Casgrain Securities Casgr.ain •, Limited, & Daly, Jr. R. A. Daly & Co. Company, Montreal Limited, Toronto Winnipeg A. MANAGING VICE-PRESIDENT VICE-PRESIDENT VICE-PRESIDENT Ralph C. Hebb Thomas W. Meredith A. G. Osburn Osier, Hammond & Nanton,» Limited, Calgary Pemberton Securities Dominion Corpn. . Securities Limited, Halifax Limited, HONORARY HONORARY TREASURER Leclerc, Incorporee, Montreal . . N. D. Young Dominion Corpn. Securities Limited Tor onto Dealers' Association of Canada VICE-PRESIDENT Gingras Investment Vancouver PRESIDENT Gerard Harry Gassard ■» HONORARY Rene-T. # DIRECTOR Frank D. Lace Matthews & pany Com¬ Limtied, Toronto ' :*■ SECRET ARY- EMERITUS J. A. >.r Kingsmill Investment Dealers' Association of Canada m Convention Number THE COMMERCIAL and FINANCIAL CHRONICLE ( Canadian Investment Outlook and Responsible Freedom A year ago, we active and broad kets for had experienced issue new several months, term governments were stable and By E. II. ELY* million mar¬ V* long- President, The Investment Dealers' Association / relatively Canada and But Detecting possible relief coming a days be¬ fore the last from lessened ing of the In- more scope for provincial, municipal and corporate Ely defends last July's Conversion Loan program in pointing Mr. vestment Canada, of Edward H. Ely forebod¬ dealer singles out need to restore confidence in money's value; of largedeficit financing spective new and borrowing money In tion, approxi¬ $1,400 million. refunding issues $2 year Bonds and billion for the Similar the United States also influenced our markets. Defends the of like to the bond Loan from our paving the flexibility ing, market But I the in Loan re¬ orderly horse. short-term Annual by Mr. Ely Meeting of the Dealers' -Association Alberta, June 9, of 1959. • to ing that had a value Actually, est Banff,' we This should be - hot the lifted the Bonds .we much more out the financ¬ carry necessary last year. know,' the Conversion widespread inter¬ favorable and reaction in circles outside Canada. as con¬ sidering." to exer¬ balance For follows: " Spending payments. From, numerous dis¬ cussions with the Finance Depart¬ and the Bank of Canada, ment there is their doubt whatsoever that no thinking is along the Just to illustrate this point, give you two or three quo¬ tations. let me Here is what the Minister of Fi¬ said nance presenting two months the "I believe < in bonds government deteriorated has — to honorable forward to a we act further erosion tal. . The ance' whole - distorted when in last, both budgetary and non-budgetary deficits turned out to be slightly below the fore¬ casts. Instead of the $1,400 mil¬ lion resources about were "Our an aim is tainable of also can for rate to of retire¬ maintaii sound on FIRST IN CANADA of is such a there imf bal¬ wide spread ; between interest on gilt edge bonds and return on "blue chip" stocks.-Does it make sense for governments to be paying 51/4% to borrow money when corporate equities yield only 21/2%? Incorporated 1932 OPPORTUNITIES IN CANADA Calvin Bullock, Ltd. 507 Place D'Armes Our facilities industrial suitable can be of valuable assistance those to development of Canada and of benefit investments interested to investors in in Montreal the selecting through which to participate in Canada's assured growth. X/ FIRST Nesbitt, Thomson Company, and IN THE UNITED STATES Limited Members of The Investment Dealers' Association of Canada Head Office: Branches 355 the in St. James Street W., Nesbitt, Thomson Members Montreal Stock Stock Nesbitt, Thomson Broad Street, Co. & Exchange and Company, Inc. New York 4, N. Y. ! 140 Federal Direct A Street, Boston, Massachusetts wire connections between New York, Montreal, Toronto, Ottawa, Hamilton, Kitchener, London 1 Exchange— Toronto Stock Exchange Canadian 25 Montreal principal Cities of Canada (Ont.), Winnipeg, Calgary and Vancouver. Incorporated 1952 Calvin Bullock, Ltd. One Wall Street New York of so may page market out sus¬ terms dodar, everywhere Continued, increase cf $1,429 a i; developn.snt a that. Canadians proper growth employment, and make orderly their capi¬ capital and mem¬ time when conditions tors shifted their savings into the stock market, hoping to counter¬ seems - prosperity and employm *?nt will when direct spend¬ ing policy and its inflationary im¬ plications. In other words, the supply of savings for government the * , contin¬ the in ago Budget all provision an same lines. ment of debt." financed by in¬ government Perhaps I could summarize the general picture over the past 12 months by saying that confidence many V \ between bers recognize that we must look come. totalled Dealers' and According to perliminary data released for the fiscal year ended they Presi¬ as Investment March 31 forecast cash outgo, with strictly cbntained expenditure, and tax re¬ ceipts in line with social security regulation of the $1,263 million. These deficits Government tended to contract, while inves- market, it sort and other fixed income borrowers attracted •rriented « of time. of example, the monthly letter of a leading United States bank com- Investment period of step is one the Con- value Victory of found was you Loan the tended Attacks and par fundamental have difficult out¬ before Canada, the man¬ an plan accom¬ plishes at one fell swoop what Secretary of the Treasury, Robert B. Anderson, has been attempting to work out slowly over an ex¬ cou¬ aggressive cheap or dear policies create periods of would Members of Investment address 41/2 % or 100%' pay heavy burden over-hanging to before Canadian enabled contract!Jf financ¬ program of debt Loan or falling bond prices—but gyrations in no way under¬ mine many 43rd to the security version Loan Aside designed the cart put This "The result of the government's these for greater Dealers'"Association made *An greater Canada's tremendous growth to when money mid- history. was prevent government uously rising largest debt fi¬ way to assure under any managed currency sys¬ tem there are bound to be times As agement. not exchange their 3% bonds for 4% * Con¬ in Conversion when the bonds mature. assist the government in devising an the to their quoted in the low 90s. are let's pon over would lot of people are un¬ a But them time, I detailed a launched July, by far the in bonds in Conversion because contract of mention the Canada nancing sure , waste past 12 months. version I'm happy . think, to indulge in view conditions suc¬ of this Loan. cess recession. a as million Association, I have repeatedly ad¬ vocated sound money, a clqser of years, standing contribution to the Briefly, in June, 1958, our bond faced the weight of huge deficit financing, heavy refund¬ ing of short-term debt and un¬ certainty over monetary policy amid growing fears of inflation in an economy emerging from a mild be so and, thus to process, fiscal market would urges the House of Commons: "responsible freedom" investment would total $5% billion. It He decries Victory few next cise addi¬ the remaining in that would political-educational participation ; and admonishes investment dealeii pro¬ around mated pressures spending and praises, however, Finance Minister Fleming's at¬ tempt to restore budgetary balance and to contain inflationary pressures. The with its omin- scale difficult more government budget was brought down ing to holders and to have been present in managing the government's debt financing. the Federal ous advantages accruing out , financing, Canadian investment deal¬ spokesman anticipates borrowers. Dealers' Asso- ciation in the Canadian bond market, stemming of come ers' annualmeet¬ up pressures on government with $166 government's During the past year, dent strength¬ ened. few debt the to balances. Vice-President, Wood, Gundy & Company, Ltd., Toronto short-terms had in added of 22 \ Forest In financial of "floating" the Canada's present actu¬ it ally means to borne be carried liquid. partici¬ pating in this cluding e\jo m e clearer, similar¬ ities between s. Foley r. O i . amongst your mines. unused, replaceable, forest of existing higher rate than that of dustries. Over forest nl Let I me dOtr that about only say are There is that no the offers my ininfield same of excitement be so and satisfaction to directly connected with the growth and devel¬ opment in a rapidly expanding country like Canada. mechanism of with a small assist from the government,;to change your Association name. point, It has been said that the meas- v seen many ups continuous over-all, A surge can once growth. . .. t , ' on. It often strikes me as one of the great anomalies of our time that so few people understand the so ing there is less analytical think¬ ing about either past or future. A period of moderate set-back, such as we have been through, acts as fundamental principles of our economic system. This reflects, I am convinced, an important weakness in educational our a Investment do particularly in pulp and and especially in British Columbia, where wtfmfav be more venturesome, or foolhardy, de¬ pending on your point of view. ' • widen to share lumber. As time passed pulp and paper became in¬ creasingly important and are to- day, by a wide margin, predomi- est Dyanmics." namics" is forces, in chemicals on can a static fast-moving appraisal of of mo¬ the condition. world, forces re¬ work at boards. than that in one our of goods every pro¬ « industries is concerned forestry or forest products. The value of forest products cur¬ ducing with or backward, or, de¬ the balance of those create a , Canadians 12 motion. cause rather know You "dy¬ sense forest although still taking second place to lumber in British Columbia. With every year that passes, wood will continue to be¬ come more a source of fibre and economy, is "For¬ word the produce course, tion forward In The used which pending paper national the in nant amongst the general population. The title of this was built initially on ownership The Caadian forest rently approximates $2,300,000,000 annually. About one-third of Canada's total export earnings come from the sale of forest prod¬ ucts. Of all manufacturing indus¬ tries, pulp and paper alone stands first in employment, in wages paid, in new investment, in net industry re¬ tains great growth potential. The Gordon Commission predicted that overall demand for products would and that said sources our forest by 1980, double Canada's forest to performance, population trends and increasing literacy, this fore¬ cast does not seem unreasonable. It might be of interest to know that if this forecast were to prove it would require an in¬ vestment of three to four billions correct, of The dollars. of this assembly huge amount of capital should provide a challenge. I would like to see this come, to pass. Actually, I the^ossibilities could be think than greater by indicated Commission. Gordon We granted. The : dynamics of the industry changed in recent years. have Forces have arisen which . - Continued on page . THE current and future prospects of Canada are com¬ and greater interest on the That is first Canadian Bank in The Caribbean fact about Canadian securities. every current now offers AN EXPANDED TRUST SERVICE IN why American Banks, Brokers, Dealers and so essential to have ready access Such data and information is SCOTIA •. The Institutions find it to NOVA OF J' manding yearly a greater part of American investors. ^ BANK THE WEST INDIES always available through this organization which has a long-standing record of success in the financing of Canadian public utility, industrial and natural resource The corporations. now From the offices of „ - our Pitfield & Co., Inc., nections with Orders our we New York affiliate, W. coast-to-coast in Canada. inquiries will be dealt with promptly. or Please address inquiries of Nova Scotia Barbados. Established Indies' trade for more offers to individuals and > Co., Inc. 30 Broad Street, New York , W. C. Pitfield & Jamaica* Trinidad and Tobago* and Company a century and a quarter —the Trust Company organizations such services as * executorship and trusteeship of wills. * trusteeship of settlements. * management ) "Telephone: HAnover 2-9250 Company (Bahamas) Limited* has by The Bank of Nova Scotia—a partner in West than to: W. C. Pitfield & Trust C. maintain private wire con- branches Bank extended its trust services to services for holding companiesy - < pension funds and financial corporations. Inquiries may be directed to any of the 39 BNS offices in the Caribbean, to the headquarters of the Trust Company in Nassau, or to any of the BNS offices in New York, Chicago, London and Canada. LIMITED Members of the Investment Dealers' Association of Canada The Montreal Quebec Toronto • Halifax • St. Hyacinthe • • Sault Ste. Edmonton • Moncton • Marie Ottawa • • Winnipeg Vancouver • Bank off Nova Saint John • Cornwall • Calgary Trust Company (Bahamas) Victoria NASSAU, BAHAMAS are slowing the industry's growth po¬ tential, relative to other areas. We .must put our hands to the job CANADA'S PROGRESS j the will, however, fall short of these fore¬ casts if we merely sit on our hands and take this growth for / * re¬ supply In the light of past adequate are the demand. industry, forest Canada's great a forest industry it was over¬ our due. service to the nation through their educational program and efforts Forces, of Step with dealers healthy spur to critical analysis. In system. Certainly because of lack of knowledge or understanding, we often, through the action of public opinion on government, or rank and file opinion on unions, fall into, or are forced into practices which are contrary to good sense and so often against the real in- forces The ^ of growth followed the paper, ' iv- ^ ^ress, Canada's supposed to benefit. 'the measure progress, the envy of the world, but I think I is testimony to the outstanding heard him say something about job done by investment dealers. holding money on deposit and They are responsible for assem¬ paying interest. I wondered if bling the capital which is — the ♦An address by Mr. Foley before the powerhouse of prosperity — the 43rd annual meeting of the Investment energizer for transforming dreams Dealers' Association of Canada, Banff, and plans into reality—the whereAlberta, June 9, 1959. correctly, In industries and foreign competitors resource Canadian the years, industry has downs, as is likely in an in¬ dustry which depends so greatly expdrt. A measure of the in¬ dustry's strength is the fact that\ with no support or protection of any kind, it has entered and re¬ mained in the rough and tumble markets of the world and shown, resource; that without, special treatment this industry of capital wisely applied is terests of those whom they are ure under- re- on top .: the on that extra burdens be removed, and incentives , variety or breadth of experience, or brings with it greater insight into basic principles or soundness of judgment. It must be a source If my memory is cor¬ rect, the bankers did a bit of shooting, at you dealers back about 1934 and forced you, at my to remarks envy. business of mV 5rie„rNed Ely"s so ' dealers vestment faro games. T hasten m r\ spired by around the bankers and dealers in f dnn'rkn^w'w^thpr ' disrespectful the often. revolves It similarly created ■ that in the T. V. westerns there seems to be a lot shooting. special tax levied it and this meant you fellows are draw- withal for building and improv- in business must be continuous. *n£ y°ur six-guns again. , ing industries, roads, schools and. that It seems human nature, however, T + when the economy is boom¬ noted have recent primary industry a large ramifications in sup¬ porting secondary and service in¬ special tax depletion allowance incentive-—affecting his industry. decries As has 1980 requiring $3 to $4 billion war, bership in your- Association. marks twice that of all the nation's metal conserva¬ again attain traditional market share. wood business and apply for mem¬ stood disappear in can made, the He indicts Canada for wasting its vast, be T members have about decided to give up pistol are Mr* Foley in outlining the disquieting trends—in¬ says provided other Canadian natural j business and ours. ' We are allowed by the government to make money out of wood. You have ijfc> even better. You are al¬ lowed1 to make money out of money other people's money. Observing the air of affluent wellyour of our So other industries; and requests cer¬ tain I potential. great changes reconpn ended has 4snote power production in dollar terms is greater than that of the na¬ tion's wheat crop and more than find the industry not taking advantage of this admittedly investment may meeting for a couple of days,, how¬ ever, the con¬ being Yet, unless tively predicted doubling of demand by After - moderate overcapacity in forest products years. or by -a b three two or along nection electric all generated in Canada and pulp and paper transactions, since ' financial with connected became of one-fifth Powell River Company, Ltd. Chairman of the Board, "float" word value of output. The industry uses By HAROLD S. FOLEY* one speaks I have often loan. how wondered Dynamics in Canada parlance a Thursday, July 2, 1959 CHRONICLE THE COMMERCIAL and FINANCIAL Limited 10 Co¥tion Number THE COMMERCIAL and FINANCIAL . , . ' ■ ' ' » CHRONICLE «tl 1 Landmarks of Tomorrow Voluntary saving and freedom making of invest¬ By N. R. CRUMP* industries. We have already seen import quotas imposed by Washington can adversely affect Canada's production of lead and zinc. We have seen, too, the threat to the growth of Canada's petroleum industry, now tempo¬ rarily removed, which was posed of choice in the ments how President, Canadian Pacific Railway Company, Montreal, Quebec the cornerstones of Can¬ are 1 . ada's enterprise economy. Because Canadians to- •• « Concerned day find them¬ selves in the ing and impor¬ nomic eco¬ envi¬ ronment He cites the Canadian Pacific and because domestic and international productive conscious, progress views that not, or cripple private enterprise, Mr. Crump asserts it is imperative that improved capacity to compete be made the foremost goal of business and national policy. changes in their Canada's because of dangerous assumptions held and midst of strik¬ tant about in by Washington's system of oil im¬ port quotas. And on the agricul¬ capacity to export commodities is jeopardized not only by farm protectionism abroad, but also by the farm sur¬ plus disposal policies of the United States. So long as U. S. wheat is sold against frozen "soft currencies" or bartered away in Canada's traditional dxport mar¬ kets, prosperity based on trade can no longer be taken for granted. ——- tural front, our farm Railway example of as an an enterprise sub¬ times it is im- jected to outdated regulation and restrictive labor practices, though po.rta.nt a no longer . to grasp clearly the basic prin- ciples upon which prog¬ itself ress monopoly nor "rate base—rate of return" enterprise must do N. de¬ R. Crump pends, I invite our is >' the need appraisal of for hich I careful a re¬ certain life. have The in other mind during need for standing of the omy itself. matter is the en¬ enterprise econ¬ day often reflect some sumptions concerning position in the world some over First, as simplification, - assumptions marized may is than we I as the destruction ishment brought and impover- _ to be self-evident truths, of which cannot as yet be fully gence of Britain and Western Eu- however, that not only assessed, it-dangerous for us to take them question for granted but also that to do so sumption believe is economic marily the result not of our strength but of other people's weaknesses and misfortunes, such widely are realities of assumptions time. our at are, best ' Who Needs Whom? Consider, for Second, there is the assumption that we in North America enjoy a moment, the as¬ sumption that the world economy Yet this resurgence constitutes a dramatic challenge to our indus- eco- will pro- only do so, however, U. S. A.'s Trade Uncertainties World War II, that the United States, being deficient in raw materials, woud never pursue policies harmful to Canada's resource technological managerial knowledge. needs more us immediate than postwar it. need we The years. monetary policy. I know how timely and how important is the Nor can we any lar, must be accorded high prior¬ ity in our country's affairs. Other industrial nations, 0f Fourth, there is the assumption we are the repository of ulti¬ that mate wisdom cal and And, *An 43rd in the realm of fis¬ monetary policy. finally, there Germany as- Alberta, by Mr. Crump before the meeting of the Investment Association June 10, of Today, however, the expanding efficient and Canada, Banff, 1959. industrial complex , ern at Europe has made world trade intensely any No longer can it be than taken that, demand the from competitive time in Canada's history. granted era T Xanenged^upe^oHty "olZ reft for " of Uie free wmrld hi w?„ d , , ^gumpUon The should be of How +ull * ^ today? industrial stemming leadership of postwar austerity thi industrial man£gerial knowledge? "f?+' . and economic North America,- it remembered, is pri- Underwriters and Dealers in Canadian Securities Dominick Corporation 360 ST. JAMES of Canada STREET WEST MONTREAL James Richardson INVESTMENT a Sons, Inc. private wire with SECURITIES Dominick 14 14 WALL STREET, NEW YORK 5, N.Y. Dominick & WALL STREET. NEW YORK / Members 'anadian Affiliate James Richardson & Sons ' Established 1857 MEMBERS All Leading Canadian Stock and Commodity Exchanges The investment Dealers' Association of Canada Serving Investors Across Canada MONTREAL TORONTO LETHBRIDGE BRANDON WINNIPEG MEDICINE HAT CALGARY REGINA PORTAGE LA PRAIRIE EDMONTON MOOSE JAW KENORA KITCHENER VANCOUVER SWIFT CURRENT KINGSTON LEAMINGTON GALT VICTORIA SASKATOON ST. THOMAS WINDSOR PRINCE GEORGE PRINCE ALBERT SIMCOE CHATHAM '•••■' - V New York Stock Exchange American; Stock Exchange v Toronto and the United Kingdom, know and understand that inflation, in any measure, is an evil thing. They Continued on page 13 What about the assumption that , . of the United Kingdom and West- more the is address annual Dealers' war no- . ^Yest . industries. Until it trial efficiency. Other people than warmng voiced by Mr. Ely, Presifor ourselves have brains and talent uent 01 tne investment Dealers Western Europe as a result of the in achieving progress through the Association of Canada, concernCommon Market may stimulate efficient use. of men, machines, me dangers of inflation. Certainly public policies aimed at demand for the products of Can- methods, material and money, maintaining a stable, reliable dol¬ ada's great resource industries. It ket. In time, perhaps, the nomic expansion forecast main competitive. The more imeconomy of most of Western Eu- mediate effect of the Common and rope lay devastated and' the Market is likely to be more intenThird, there is the assumption United Kingdom itself had an old- siye competition from abroad both that the United States will never fashioned industrial plant worn to for markets and for investment pursue trade policies harmful to the breaking point by the strains capital the growth of Canada's resource in fit to aban- Keeping Currency Sound be welcomed, for with- rope must longer assume, as it was fashionable to do in the years immediately following and when come * I pretend % no expert knowl¬ out it the Free World could not have survived the Soviet threat, edge in matters of fiscal and vided wages and other production Such an assumption undoubtedly c°sts in Canada are such that the unchallenged superiority over the rest of the free world in industrial had considerable validity in the products of those industries reefficiency see well-being over short-sighted and, I hope, short-term trade policies based chiefly on considerations of political expediency. assumptions half-truths. it. may War II. This position of leadermost vigorous . competitors for ship has been based on tempoby many, business- world markets. rary factors which are rapidly labor leaders and parliamenAnother factor, the full impact vanishing. The industrial resur- These considered the need time about by World assumption that the world economy needs us more The Washington will does, however, the realities of the situation would suggest that we can no longer safely assume that Congress will give priority to the importance of Canada's economic sum-f These be follows: there sumption that the mixed economy, in those countries will continue to enterprise and pri- provide a dynamic stimulus to vate enterprise function side by Canadian trade. Instead, we must side, is not only a good thing .in acknowledge that the fact that the itself but.is also essential to na- United Kingdom and the countries tional growth and prosperity. rof Western Europe are today the but which calls into the validity of the asbasic as¬ that the rest of the' Canada's reflects an' attitude of compla- world needs us more than we need economy. cency wholly at variance with the is the European Common Mar- Public and business policies to¬ With an economy job. in which state men, tarians Lists Dangerous Assumptions Held these that suggests of erosion of the don such economic follies. clearer under¬ a Convinced that free One of these assumptions which many of us have come to accept as landmarks of Canada's conomic exposure become everyone's destined to affect profoundly country's future. principle be applied to rails. better educational job, the industrialist a explanation of profit and loss system and consideration of two matters which seem recipient of fair rate of return, and asks that the public utility ' Stock v Exchange THE Thursday, July 2, 1959 COMMERCIAL and FINANCIAL CHRONICLE .V Canada's Growth has been rapidly in the post¬ war period—in fact more rapidly than the -U. S. economy, ' the world's most economically ad¬ Opportunities for Americans to do well in Canada looked better in view of Canada's world record Product. our popula¬ tion increased Canadian government economist million (a total of 45% an annual erage in Canada. av¬ Our face the of cent). product from $11.8 mated to Dr. ment of increase of 1.7% and country de¬ our ^than the States, the United and the U.S.S.R. Kingdom Foreign Growing Over this Investment. in popu¬ foreign invest¬ on increasing importance in financing our eco¬ in ment period has gross nomic develppment. Between 1946 national product in volume terms will notice that both of growth are quite a bit than the Canadian rates of and of 2.1%. You capital formation (in durable physical assets) was financed by foreign capital. Between 1950 and growth. (Over the period 1945 to 1959 the U. S. population in¬ creased from 140 million to an estimated 177 million or by 26.5%, about 1949 1954 an 19% estimated of 25% proportion like 35% rising for the most $18V2 billion at the end of 1958, or by 160%. Over this saijie period, U. S. long-term investment in Canada has increased from $5 bil¬ Capital Investment Pro¬ Since the end of World War II Canada spent some $78 billion on capital investment of Record Mr. by Annual lion to of Firestone before National In¬ New York around 180%, and the, Meeting, Conference risen from about total' has Board, $14 billion, the U. S. \rown $7 70 been brought in i du figures 1 a in¬ illustrate the hands this of a recent point conducted survey which 1957 indicated obtaining increasing control of resources and industries Canadian only ating in that in of the capital re¬ U. with S. sented in Canada came from the ..remainder proportion small a the of U. S. Control try. petroleum industry some 85%, mining and smelting about 65%, and total manufacturing in¬ dustries over 50% (approximate e. g., of the as Over U. Concern end 1958). of And Public's the repre¬ S. Investment Policies Attitude. In ■> r the last Canadians have been taking stock trying to assess the years benefits nomic which their expansion has rapid eco¬ brought them and the prospects to ahead for by retained profits earned Canada and obtained . by investment from Canadian in¬ Municipal Canadian of controlled This non-resi¬ by arisen has concern of concentration the ownership is the in one States, and centered United the form equities which, in the ordinary of events, are never likely be repatriated." to "A situation does exist in sectors the of some where legitimate Canadian interests may be over-looked or disregarded. The economy non-resident all be cases point "We aware of the Canadian view." of Canadians believe have more that such should tangible assurance than they now have that the people who are responsible for the man¬ agement of such foreign-owned concerns will, whenever reason¬ ably possible, make decisions that are in the best interests of Canada; come concerns in effect 'Canadian' more Canqda-wide service, with offices at: out¬ Government's summer of of 1957 Attitude. we gbvernment: had Since In Winnipeg, Man. Ottawa, Ont. Calgary, Alta. Halifax, N. S. Saint Hamilton, Ont. i John, N. B. / Charlottetown, P. E. I. that time 2 Royal Commission on Canada's Eco¬ nomic Prospects, Final Report, Ottawa, 1957, pp. 389, i Continued ; 392 and STOCK EXCHANGE TORONTO, 347 BAY STREET ONTARIO EMpire 3-9041 Edmonton, Alta. TORONTO Vancouver, B. C. John's, Nfld. Victoria, B. C. SARNIA Underwriters Distributors — — : CHATHAM WALLACEBURG — ■ ^ Dealers Business Established 1903 "WHAT IS THE TRUE Royal Securities Corporation Limited LONG TERM . 244 ST. JAMES STREET - • ■ GOVERNMENTS?" • . Current memorandum sent 55 Exchange request. Suite 710 Toronto, Ontario Canadian Stock Exchange The Toronto Stock Teletype service from on Yonge Street Members: FOR SAUNDERS CAMERON LIMITED Royal Securities Company Montreal Stock INTEREST RATE . WEST, MONTREAL 1 Exchange coast to coast Dealers in Government Securities \ . EMpire 6-8601 393. on page ' St. the change a THE INVESTMENT DEALERS ASSOCIATION OP CANADA Toronto, Ont. be¬ in look.'^ MEMBERS TORONTO Quebec, Que. the of owners larger companies which have a dominating influence may not in Goodwin Harris & Company Utility and Industrial Securities Montreal, Que. of certain because most of it is in November 1 Survey -of Current Business, U. S. Department of Commerce, Washington, January 1959, p. 23. it of in LIMITED Public or com¬ course supplying capital required for the develop¬ ment of these enterprises. five only 31% non-residents of hands country, of out by the re¬ quired by U. S. subsidiaries oper¬ to v while at the same time by the U. S. Department of Com¬ funds Canadian Government, abroad. from merce 76%. City. inflow the importance sult of share of from These d i the skill of American management estimates has gain a earnings in* Canada as of foreign borrowings as The billion at the end of 1945 to about gram. address has ment retained the capital recent vestors.1 n Canada's major industrial sectors, their something to i stitutions and of well nanced from that source with this gross 43rd the in because foreign controlled companies and Dominion Bureau, of Statistics in¬ fi¬ was terms.) ♦An in panies of Canadian Indus¬ The U. S. has concentrated heavily in certain key industries and has been able to obtain con¬ trol of half or more of some of cludes period, 1955 to 1959. Total long-term foreign invest¬ dustrial use 2%. figures indicate. The definition of "foreign" capital as used by the gross national product in¬ creasing from about $214 billion to an estimated $468 billion or 119% in value and 33% in volume the Canadians are worried about such a large degree of economic decision-making being in¬ dustries, because of the fact that from Canadian sources than these taken economic Canada's I quote: and foreign gest that Canada is relying rather heavily on the inflow of foreign capital for her economic develop¬ ment. In fact, however, a much larger proportion of our capital investment program was financed including United foreign expanding in "Many whereas Canadians have supplied 67% of capital Retained Earnings and Canadian other industrial¬ any ized nation in the world idly Than the U. S. Over the same period the U. S. economy also made great strides forward in¬ cluding an annual average com¬ rate of served, principal Canadian grievance, Ameri¬ greater proportion of its Borrowings by U. S. Subsidiaries. output to capital invest¬ sAt first glance these figures sug¬ a national More Rap¬ Expanding types. In fact voted terms, or at an compound rate of 7.9% and 3.5%, respectively). volume Canada plication most all has Canada of Canadians and the im¬ development. The Commission ob¬ or O. J. Firestone and growth rapid meant for investment supplied but 31 % of required funds and, yet, control economy $34.5 in with Canad'an SEC act. Making effective a underscore and others annual average lower publish financial facts matters. other things this Com¬ brought into focus what dents. (an increase of rates of consequences official data 55% of Canadian 192% in current dollar terms lation that denies equity ownership discriminatory practice shown to have are cans billion in 1959 pound the subject of range mission concern over esti¬ an 63% possible of U.S.A. billion in 1945 to wider Among hostile feelings at American direct in¬ any Mr. Firestone also advises his targets to na¬ gross tional rose from report of the U. S. Paley dealing with natural resources but covering an even Commission com¬ pound rate per Government the to opportunity and managerial participation in U. S. controlled firms operating at of1 but vestments 17 vz lion jlo have never To this, however, the pointedly advises that growing U. S. ownership stems not from Bkjnil- said to high post W. W. II growth and optimistic projections concerning the future. pace and' Gross *National Between 1945 and 1959 Population 2.7 are century. The appointed quarter Royal Commission on "Canada's Economic Prospects" which turned in a report in 1957 similar a very nation. vanced next Canadian Adviser, Department of Trade and Commerce, Ontario, Canada Economic The Canadian economy from the By O. J. FIRESTONE* Expansion growing Prospects and Role of U. S. A. Y Investment Economic Canada's Postwar Telex No. 02-2328 18 Convention Number . THE COMMERCIAL • • • - and FINANCIAL CHRONICLE •0 . What Canadian It is not my purposa ' ; < *• ' , Banking Is Doing and Should Do to present By ULRIC ROBERGE* billion detailed review of economic fac¬ a tors or to ■r" attempt to foretell what There the future holds for the Canadian 'c, ': '-'V But economy. it may be are said of that sion. i,.,; re¬ and in¬ Ulric trade. export Balance been hcis held, the money supply a under tight restralm> restraint it has as nas been Deen held nela as close to level as possible with, if slight a drop. For position to to exercise the satisfy Sell Bonds That increase and that trend has continued. Faced with a static k„„,„ supply, the banks were liquidate holdings of treasury bills and government bonds to put themselves in a cash position to satisfy the demand for money of government address Canadian tebello, by Mr. Bankers' Que., June 12, care still are feature personal savings chartered of on banks billion-mark for crossed an ada is deposit in the the $7.1 all-time high, on Dec. 31, 1958 there 1,531,569 loans- on the books of the chartered banks apart from mortgage loans under the National a greater added of to banking services to extent than any other use support that conviction with concrete evidence , but what other can boast there is banking system a non-business bank account for every adult in personal loans to on, 'is TWs is indi- 11Q clea overlook tha individual in not ^^dYng evidence borrower small I regards number system can match the Canadian record of a bank branch for every assistance.' one referred under ]to that the the nation?k Whst other banking I the. farmers to ^6„T„05 , If purposes. loans .. It may not be possible to people. Of these, 66% were to individuals for loans personal number It has long been my belief that Canadians indi¬ It is not but ures bank customer, a of lending accounts. possible to give comparative fig¬ were banking in that practically everybody in Can- see That condition that continue bank for credit and continues to grow, continue am Borrowers e'^n Sma11 borrowers, including the in personal before Association, Mon1959. will receive this period of borrower, treatment in appointed was Canadian . ,. . member a Bankers' of AssociaT . • usethat as a starting po.ht to demonstrate the tremendous proggrowth that u the banking has marked nas marked system of this coun¬ the growth in the physical as in more sense the of as his financial previously National ,, T nersonal bank a source 1M to loans Housing Act . , and I would like to give figures Canadians of who are bank customers but graphically fl the n t their ' strength and re- confidence in J stability of the banking system. Incidentally, dur¬ ing the nine-year same the banks paid out more the of $1,117 million, aiding in of 109,000 new throughout Canada. In ad¬ construction dition, under the home improve¬ ment sections of the NHA, which became effective in February 1955, the chartered banks made 122,300 loans to a total of $127 million. As period, the use and extent of bank- Continued than $1 on page 17 the number of branches but, important than that, the ? <► number of people who . services use has ^ncreased bank- bevond against period until today it is a HANNAFORD INC. DAWSON, g services has increased beyond a*1 expectations in that nine-year static money supply. not number loans homes such increased demand for bank credit a figures than $7 billion $12 billion. Those only show the vast more than a ln August, iyau and I intend in slightly more , 1Q(-„ I to comparatively short time of nine years. There has been sure bonds Roberge I The try I speak for all chartered banks when I say that every effort will be made to see that I Tremendous Progress, Growth ex- increase. will from stands. still every care to bank loans do not fair ♦An the utmost ercising mand Obviously, this process of the banks liquidating bonds to obtain amount look at the number vidual 3,700 of the1 population? major, and very dramatic, changes During the last nine years the in the *n ^he over-all banking picture in number of deposit accounts in the total Small cannot 2,500,000 each bank¬ Loans to Individuals Or alternative but declaration loans. funds no intensify as long as the money in* fivpH nnH the rlesupply remains fixed and the de- to loanable reached ing day. ownership of its industry. the past few months has been that limit, too, be¬ banking can go in the The chartered banks year,/the demand for bank loans forced has years as in handling of their credit facilities, the last few months so that I may chartered banks increased from for this type of lending. Between in-. *n order to avoid any significant take more time in discussing the slightly more than ■ 8 •> million to ^arc*} 19o4, when the Act came further increase in the over-all flexibility and growth of the bank- about 12 million and total Cana- joto force and the end of 1958, ing system in recent years. total of bank loans." dian dollar deposits increased the chartered banks had approved Suddenly, about the turn of the started to banking nine of were creased demands Banks to grow, particular pleas¬ expresses reference to this gen- a the banks have months before the turn of the year there was little demand for bank although the banks He rings, The. volume of personal savings era^ situation a month ago in a again, since the turn of the year, Public statement when I said: increased m one of the most rapid Until such time as those respon- rises in many years, an accumulasible for national monetary policy tion of stored-up purchasing power decide, in the light of their ctp~^ thflt is porticulRrly significant praisal of relevant circumstances, when the economy shows every that some further increase in the' sign of a speed-up. money supply may be permitted, 1 have touched briefly on these and particularly past six months have a prudent bank no I made unusual period in banking. Since last October the Bank of Canada excellent as shareholding-representation and in the virtually Another un¬ liquidation of its bond portfolio. concern. vear There is which dictates of payment position continues to give change, of number cheques passing through the banking sys¬ tem has been increasing about 10% a year for some time and now ' long so The Housing Act. yond loans the gains in Canadian the hands of the batiks is not seems limited. any at unmatched record of Canadian fields; it noticeable in the trend past . bank loans, colleagues. Stepping down after two Roberge is not yet the on banking group, Mr. Roberge briefly depicts the major changes in the past few months, and banking's flexible and dramatic a to be limited to domistic The to his tremendously progressive growth since 1950. ventory. Thus far, however, the recovery for other ways of demon¬ the ..growth years. President of Canadian of business , tight rein a supply is kept in check and demand for bank loans continues ure revival cause keep -;;v;7U / . tb Roberge's advice de¬ and our - alternative but is Mr. continued mand ■ , # no is rest¬ consumer are strating money reces¬ strength in of • Banks have ing basically on savings de-. « out The covery interest to services in Canada in the past . we way the * . working our and General Manager, Banque Canadienne Nationale that many in¬ dices clearly, show in positors. President of the Canadian Bankers' Association Wall 37 Street YORK NEW truism 5, <► <► N. «» Y. $ affiliated with - ** <► o i* DAWSON, HANNAFORD LIMITED O Underwriters and Distributors of Canadian «► Securities <► Montreal i* ** «► ** i* Toronto and <► *» DAWSON HANNAFORD & CO. LTD. Mevibers Montreal, t * <> <► Toronto and Canadian Stock Exchanges <► i* O Toronto Montreal e WUWtUMUUVUUUHHVWViMWWVUWUHHUWmV Greenshields & Co Inc Greenshields & Co Collier Norris * • Limited MONTREAL CANADIAN Underwriters and Distributors Members Montreal Stock °f The Toronto Stock Canadian Security Issues Canadian Stock EXCHANGE STOCK STOCK EXCHANGE Exchange Exchange Exchange \ 507 Place d'Armes, Montreal 1 •'"'M ' fcj' Collier Norris Montreal New Toronto Quebec London & Quinlan Limited York MEMBERS Winnipeg Ottawa Sherbrooke Quinlan & MEMBERS The Investment Montreal Dealers' Association of Canada Toronto FINANCIAL CHRONICLE THE "COMMERCIAL and Managing Canadian Subsidiary for a Thursday, July 2, 1959 United States Parent a •••" is There Canada of concern in the concentration of sense a over of ownership the of some ' • C. By and Canadian Vice-President, c;un- v- f Company, Electric General Ltd. Toronto, Canada try's more important industries in a (1) The determination of goods MORRISON* A. " / . Getting down to specifics, head of that is friendly as though U. S. subsidiary in Canada discusses a problems arising from parent ownership of subsidiaries in Canada and. pre¬ well scribes part¬ as a in "decentralization" except for those be beneficial. Thus, Mr. Morrison's candid may in other inter- and troubling to present answers yet prob¬ they definitely favor management and operation tion and not lems that Can- as a "branch" or Canadian as a figments the imagi¬ nation or to the C. evi¬ dences of legality of their action un- der Canadian law. A. Morrison Some of the Favors Decentralization ; environment which the parent operates. hac Tt fundamental that suggested hppn in this path will surely restrict the long-term profitability and a growth of the subsidiary. A board in overcoming move outside of directors with strong *lOther problems relate directly to these matters would -be for the Canadian representation m«ay parent to sell from 20 to 25% of prove extremely - helpful to the ships between the U. S. parent the subsidiary stock to Canadians. ?^si^ry^anaSement-ln meet" and the Canadian subsidiary. The while this would permit Canadian ing this need. government, and other top-level fundamental answer to_ these investor-partnership in the ownBoard of Directors legislative .committees, signify the problems lies in organizing the ership of the business, and would ^ 7 between directly the field of commercial relation- Washington and Ottawa. The two-way visits of our heads of attention is that action of the U. S. concerning the is situation oil Canadian to given being The recent timely matters. these ex- an ample of the friendly relationships between, the two countries, there But unresolved other are subsidiary so that it is managed have favorable public.. reception, and operated as a Canadian cor- ^ does no^ ge^ the heart of the poration and not as a "branch" or probiem- The problem arises from a "division" of the parent com- the management philosophy of the pany. This may seem to you a parerd with respect to the operasubile difference, but its impact tion of its subsidiary. The control, on the Canadian public and in wheiher it be 80% or 100%, nas ^o ^be with United States anti-trust laws, nical know-how and management tbe help that This involves,clear-cut the Canada and the economic Canadian under steps to position action companies pressure to mayNjje comply witWdiary United States law, without regard •An the address 2nd Newark by annual City.*"3 Morrison before conference, Mr. economic on erence °*r it be fed into the sub- can from the parent. ■■do^s recognize However, that policy- be nredicated acceptance philosophy of decentralization, delegation X'^fdlary Poffi«w: Canadian distinct from the agement of a business as differen¬ on as in of only found is solution wbole-hearted appr0priate authorities and clearly defined accountabilities— all related to the general man- making for the subsidiary must environment agement philosophy of of full the wjt|1 sr to constitute as" ified bod to ooay. 77 a highly qual- give 8 ~, should board advice of the world. We believe delegate to that to play in world affairs. are a modern and are as having tions. this reason ma1age- believe in is important mainta'n partnership participate, basis, the f as. that in the North a on American whole. Sound corporate re¬ lationships between our tries greatly to the strength such broad matters international contribute can and two coun¬ well-being this of partnership. Yet, Would Not Weaken Ties Underwriter • Distributor Dealer • Government and its these ties should However, such. Securities of the United States parent and subsid¬ beneficial must documented so that the authority management Canadian the of Securities of Industrial, Public Utility and Railroad Our rela¬ tionships, that the autonomy and , corporate integrity of the subsid¬ This pre¬ iary be fully apparent. .. caution Bank Stocks Company Stocks through United States to if with CANADIAN GOVERNMENT the of respect PROVINCES relationships which the MUNICIPALITIES examples of such contrac¬ some tual typical External Dollar Securities laws eyes foregoing may be clarified are It is and requirements subsidiary would stated. th£ following are that suggested Canadian Securities when parent the securities of the additional commercial relationships. The Development the to viewed Bankers' Acceptances Securities of the International Bank for assume may significance Casualty, Fire and Life Insurance organization underwrites, distributes and deals in . Corporations Reconstruction and is impor¬ these formulating in tant, is It understood. clearly Bonds, Preferred and Common Stocks as carefully considered and then be State, Municipal, Revenue and Housing Canadian Securities parental where areas assistance may be Agencies parties both by The and nature in contractual recognized must ties that close the between iary. be that decentralization of weakens exist this philos¬ is nothing in There ophy be CORPORATIONS from purchased parent: (1) Consultant services on advanced ogy on advisor and matters concerning and methods technol¬ all operating functions. (2) Basic "know-how" and pat¬ The ent rights. (3) FIRST BOSTON The Harriman supply of goods ancl services necessary to complement Ripley & Co. Incorporated • Underwriter* and Distributor* of the manufacturing and marketing CORPORATION operations of the subsidiary. S3 Wall ■ Capital laauos Street, New York 5, N. Y. It is essential that the Canadian BOSTON New York Philadelphia Boston • Pittsburgh ^ Chicago subsidiary of a United San Francisco Cleveland, harmony nomic and Canadians. with the social, deviation CLEVELAND PHILADELPHIA • • DETROIT • • SAN FRANCISCO READING eco¬ political aspirations of Any CHICAGO States parent should operate in complete , • from London Correspondents: a general branch. domestic we political in¬ our dependence and o It enterprise system. therefore, growth institutions democratic and the free ment 'of the company including, but not necessarily limited to, as— coun¬ our by the non-committed nations. We parent-subsidiary generai aspira¬ sel is given considerable credence officer the responsibility and au- the world the aggressive no For in a We nation industrial recognized continent for has Canada role the President and Chief Executive thority labor of (7) The marketing of the sub¬ sidiary's products in all markets and .should ? u then negotiation management of a the from tiated representatives, should be chosen the operation of the business. The approach does not limit the tech- protect take includ¬ independent of the parent, of subsidiaries bearing directors, number guidance to those charged with conflicts nadian such Ca- example, for of board a in itself, on this man- fact, on the long-term profitability of the subsidiary itself, cannot be over-emphasized. This If, problems. The ing The other political, and must are answered ' be and methods The corporate participation charitable, educational and community endeavors. in "division" of the parent company. a States United- an inferiority complex. problems qf product design scope (6) corpora¬ not of and union contracts. are sees - of supply for components. sources manufacturing (5) problems would not weaken the close ties between parent and subsidiary and af¬ fairs. The manufactured be facilities. and national The materials (4) The things where parental assistance military defense ada (3) all country ner to (2) The prices at which all goods and services will be sold. rei g n o country—even services purchased for resale. or PHILIP HILL, HIGGINSON & CO., LIMITED * Convention Number THE COMMERCIAL and FINANCIAL & Mrs. Norman Alexander, James Richardson & Sons, Winnipeg; Mrs. E. H. Ely, Toronto; R. Crump, president, The Canadian Pacific Railway, Montreal; E. H. Ely^ Wood, Gundy & Co., Ltd., Toronto; (n, b.—The background of mountains is not a picture; this is a scene through CHRONICLE Mr. N. the window of Banff Springs Hotel from the main .Norman Alexander, James Richardson & Vancouver; lounge) Sons, Winnipeg; Wilfred Borrie, Pemberton Securities, Ltd., .Toronto; Harry Gassard, Investment Dealers' E. BARLOW, L. E.* Winnipeg & Dominion Securities Greenshields & Vancouver •'\ 1 ;■ Co Inc Thomas Investment Dealers' B. Ltd. Continued Graham, 1 Securities BOYER, H. B. W. C. Pitfield & Ltd. BOWLEN, James Richardson & Sons ANNETT, W. S.* Toronto Investment Dealers' Association . Nesbitt, Thomson and Co. Brawley, Cathers & Company F. J. Brennan & Toronto Dominion Securities Corpn. Ltd. Saint John BLACKMORE, - Mrs. - BRENNAN, MISS PATRICIA Montreal Limited " Saint John BINMORE, F.* Nesbitt, Thomson and Co. Company Limited Calgary ARMSTRONG, D. B.* DR. J. J* BRENNAN, F. J. Limited ARMOUR, A. D.* HON. Lieutenant-Governor of Alberta Edmonton BESSEX, D. H. Toronto Mr. and ' BENNETT, H. R.* Toronto London . Toronto Annett & Company Limited Denotes Equitable Securities Canada Company, Ltd. Victoria ANNETT, D. R.* v . Pemberton Securities Limited BELL, P. W.* Montreal V Vancouver Vancouver Ltd. * Bongard & Company Limited Armstrong 23 BORRIE, W. J. Wood, Gundy & Company ANDREWS, H. W. page . Toronto BEALE, ROY* Montreal on BONGARD, GORDON R. P. Reac|[ Company Ltd. Vancouver Association Corpn. Ltd. Winnipeg Toronto , BARKER, A. J. .■ ALMOND, L. F. Co., Toronto Jackson, McFadyen Securities Company Ltd. Toronto ALLAN, MRS. BRUCE Wood, Gundy & Canada, BOND, PIERRE H.* McLeod, Young, Weir James Richardson & Sons of Association Winnipeg ALEXANDER, N. J.* Powell River Company, Ltd., H. Ely, BULGIN, J. D.* BULFORD, M. J.* In Attendance at Convention H. S. Foley, Ltd., Vancouver; de BREYNE, RALPH* BERNARD* Globe & Mail L. G. Beaubien & Co. Limited Toronto Montreal y McLeod,Youhg,Weir & Company LIMITED DEALERS IN CORPORATION 50 MUNICIPAL GOVERNMENT, SECURITIES AND * 276 St. James Street West King Street West Toronto, Canada Montreal, Canada Telephone! EMpIre 4-0161 Telephone! Victor 5-4261 Ottawa Winnipeg London Vancouver Kitchener Quebec Sherbrooke Windsor ' Hamilton Calgary Edmonton New York During the past quarter century, and particularly in the recent development in Canada, the principal sub-divisions have util¬ ized the investment markets of the United States for an important part of their financing requirements. Smith, Barney & Co. has been privileged to serve, either as a managing or major under¬ writer, in the greater part of that financing which includes both public offerings and direct placements for the following issuers: years of vastly accelerated capital Government of Canada and its The Government The Provinces of of: Alberta • British Columbia New Brunswick : McLeod,Young,Weir & Ratcli ffe . The Cities MEMBERS Of THE TORONTO STOCK CANADIAN STOCK 50 ORDERS EXCHANGE STOCK EXECUTED MONTREAL STOCK EXCHANGE ALL Quebec • Ontario Saskatchewan • ' of: Manitoba • V . ' • Hamilton • Montreal • Ottawa Toronto • Vancouver • Winnipeg EXCHANGES King Street West, Toronto, Canada—EMpire 4-0161 Nova Scotia • Edmonton EXCHANGE ON . Canada Smith, Barney & Co. Members New York Stock 20 Broad Exchange and other leading exchanges Street, New York 5, N. Y. Philadelphia • Chicago • Boston • San Francisco Albany • Allentown * Cleveland • Hartford • Milwaukee • Minneapolis THE 10 J. A. Mr. Milner, Mills, Spmncejft Co., Ltd., Toronto; W. R. Taprell, Carlile & McCarthy, Ltd., Calgary; A. J. Milner; Jack Kingsmill, Investment Dealers' Association of Canada, Toronto Mrs. Continued from of if be page 4 Forest the are has momentum of increase or growth in the ahead. again stress our de¬ pendence on export, because it is the all-important fact about our industry. We export more than 90% of our newsprint, more than 80% of our pulp, and more than half of our lumber. The foreign buyer is not interested in our costs or taxes or any of our do¬ mestic problems. He wants qual¬ ity at the going price, or he will Between some may some Similarly Canada they deserve. the U. S. over market, the which offset 1957 and remainder of the by free scientific possible which advances the use of" the world very of Production from best What at work has are behind Canada In the these faces to well market, tered. newsprint, which Other dynamics trends? physical terrain or in relation be al¬ forces, however, can cannot granted other by We and paper, or which the raw material re¬ available, particularly in Our States. centives the world, including the in other countries. wise are effective and For bia bringing estimate them to higher. Colum¬ be 25% higher than in the Pacific North¬ west States, a major cause being tariffs designed to protect do¬ mestic industry. (In passing I would like to say that the current sentiment toward higher tariffs in brought special burdens perity and greater even and States in the are well extended to an to degree the pulp companies. paper granted generally were addi¬ In tion, provision for special deple¬ tion allowances for timber owning companies in United the makes investment there attractive. of some Under these British States relatively provisions Columbia's Company,.one of the larg-^ in the est world, last securities, can be of assistance. ? Georgia Pacific, rate another hope I United States thus selecting Canadian securities frequently desire advice specialists in this field. The experience and facilities of our organization, with offices across Canada and in London, New York and Chicago, are always available upon to mines similar request. industries. growth potential Canada has petroleum or 40 105 Wall for As have I dynamics must Canada, unfortunately, Afiliated *• with sustained ing - Head This If it to is resource is in the encourage pro¬ now national investment petroleum, which even desirable more is to it en-; has been done else¬ as the development potential which of is . the now wasting and which could be util¬ ized King Street West, Toronto, Canada Winnipeg double present not without forest Ottawa yield harvest support¬ irreplaceable resources, forest Office forests annual an are where, Wood, Gundy & Company Limited 36 provide least at courage, l Kitchener. Regina London, Eng. Halifax Quebec Edmonton New York London Calgary Chicago . Hamilton Victoria know-how, the stressed, however, the changing are with and we or see them, great opportunities escape us. of the that proved in the markets world are we over years many vigorous, competi¬ a tive industry. plant Our know-how and efficiency We do second are do to special need not treatment.- We think there is strong case, in the national in¬ terest, for the elimination of the the those to on industry and provided for other nat¬ industries resource ada our of incentives similar creation and diminishing the It tion in Can¬ tp the forest industry in In be if industry continued to our capped an. unhappy situa¬ position of being handi¬ yards 10 in 100-yard a race. Investment decisions in dustry years' two present capacity could within that moderate well, be period. In strong growth forces work. The race of new market be our in¬ three or ahead of actual production the and made are over¬ used my are up view again at to take advantage potential will soon resumed. resource. my view Canada has ternative, to would be in the I Vancouver The tremendous. competing countries. could in minerals and Street, Chicago 3 the change forest Canada has vast unused which interest Street, New York 5 West Adams is required wood, water and power. V wasting. Wood, Gundy & Co., Inc. Canadian forest in¬ dustry .-Exactly the opposite. ural duction. coun¬ incentives measures sounded riot tax or and assistance from Montreal other and parallel of pessimism about the of the extra burdens tries dynamics have for cause no future a does not. holding large income net a few factors in a the of a 37%, while of 31%. with * had producer, dependent gloomy, because there should be none. granted Private Investors— had year net income tax rate of considering the establishment or expansion of a Canadian sub¬ sidiary often wish- to investigate the possibility of raising" additional capital* through the sale of bonds, debentures or shares in Canada. Our organization, with over fifty years' experience in the underwriting and distribution of Canadian industry greatest industry. We have States, for example, Weyerhaeuser Company Executives— placing of an com¬ petitors in the Pacific Northwest Timber on wholly so review this I They any developed, The results of incentives known. from on meeting the world market. Canada's United than vital to national pros¬ so are contributed have industry a wood industry in Canada. It is dif¬ greatly to Canada's rapid growth. southern higher I have sketched been have not which and fact, all ficult to understand the otherwise which resources in on industry our on 5% which is and development the about They policies is, tax The so-called It makes the total in¬ tax to on: of to capital costs are example, in British we have which United States. 2i/2 the pays income largest the puzzling. which tax special in¬ mineral the to granted of two now logging other would costs in relation to productivity have been rising too fast compared to other parts of wage Ontario, come the many of aware are and ,pulp and forest producers, is tax Columbia British in processing. important. ada for recent ? discoveries Our certain disadvantages such as geographical position Incentives countries compared to Canada are Federal-Provincial the under agreements industry fected.) forests' markets. of the some af¬ petroleum industries in Can¬ the United more our against the nations and or some retaliation by products in¬ Canadian large southern United States pine increasing expanded facilities in other countries is, in turn, eating into invite tariffs our made possible the pulping of tem¬ perate zone hardwoods, greatly Obviously the investment flow pulp and paper since 1950 new higher find made 35%, • takes Freight is an important element our industry and Canada is a long way from many major con¬ suming markets. Investors look for plant sites and forests as close as possible to the point of con¬ sumption. New technology has made this easier to achieve, for example, sources it has in Canada. Canada worries us, because we evitably quite rapid in the remainder, of the free world than market world's 1950 has been much period Canada's share of the half to into disquiet¬ dropped from 55 %to 48%. same chemical p u 1 p: its production for by 57%. Since 1950 Canada's share of the world-newsprint 1959, Can¬ capacity increased increased between trends in recent years that not have been getting the at¬ tention about to rate. other country. There have been 80% and by 44%, but the remainder of the free world increased its capacity by 95%; or more than twice our Disquieting Trends ing 1950 ada's newsprint should buy from dropped from 70%. years I play in Dynamics in Canada to maintain into brought & Mrs. Douglas Bulgin, Dominion Securities Corpn., Ltd., Winnipeg; Mr. & Mrs. William Spragge, A. E. Ames & Co.,- Ltd.-, Toronto; Frank Rose, Dow, Jones & Co., Inc., New York them. setting counter forces in action we Thursday, July 2, 1959 COMMERCIAL and FINANCIAL CHRONICLE unless continue to Certainly^ trends, the we are no al¬ content slip behind. in light special of tax hope I have said enough to list these problems so that the impor¬ tant recent imposed en¬ help in reaching solutions to pulp and the Canadian paper segment economy forward as it should. will of move Convention Mr. & Mrs. Number C. P. THE COMMERCIAL and FINANCIAL Lailey, Charles H. Burgess & Co., Toronto; Mr. & R. A. Daly & Company Ltd., Toronto Mrs. R. A. Daly, Mr. Jr., & CHRONICLE Mrs. Allan H. Turney, Dojxerty Roadhouse & Co., Calgary; Casgrain <6 Co., Ltd., Montreal • . 11 Mr. & Rudy Mrs. — Casgrain, > MlMINP HiHI ■1111 i',/ Mr. & Mrs. & Co., Ltd., Les Scott, Ross, Knowles & Co., Ltd., Toronto; Mr. & Mrs. E. R. Pope, Toronto; Mr. & Mrs. K. S. Langfeldt, W. C. Pitfield & Co., Ltd., Have you questions Ross, Knowles Mr. & Mrs. J. C. Edwards, Matthews Edmonton Jackson, & Company Limited, Toronto; Mr. & Mrs. Pierre H. Bond, McFadyen Securities Limited, Toronto on Taxation... BONDS STOCKS CANADA? in "Your Guide To Business In Canada", published by Canada's First Bank, includes a survey men's language ofthe taxes affecting your in lay¬ major Canadian business or per¬ m,.ARKETS sonal interests in Canada. These in¬ mainiained in all classes of Canadian exiernal clude Federal and Provincial taxes, and to • and internal bond issues. special tax situations with regard Canadian branches and subsidi- Stock orders aries, investment companies and oil, natural gas and minerals. Exchange^, To obtain your copy, write on your business U. S. letterhead office, or to our executed or on the Montreal and Toronto Stock net New York markets quoted on request. nearest DIRECT to the Business Devel¬ opment Department, Head Officer PRIVATE WIRES TO TORONTO, MONTREAL, OTTAWA, WINNIPEG, GALGARY, VANCOUVER, VICTORIA AND HALIFAX BELL SYSTEM TELETYPE NY TO I MIllIM CUADM Bank >>>y. I of Montreal (2<ZKCu0t'& 'pout Bomimom Securities Corporation (faldt-t*- BRANCHES IN ALL TEN District PROVINCES Associate Member American Headquarters: Boston Halifax, Toronto, Winnipeg, Calgary, Vancouver NEW YORK: 64 Wall St. • SAN FRANCISCO: 333 California CHICAGO: Special Representative'* Philadelphia St. Office, 141 West Jackson Blvd. London, Eng. Ottawa *r¥e4xl 775 BRANCHES IN RESOURCES Office: TftoHfrieal GREAT BRITAIN EXCEED $3,000,000,000 CANADA, U. S., 1-702-3 AND EUROPE Calgary - 40 EXCHANGE PLACE, Stock Exchange NEW YORK S Toronto ' Telephone WHitehall 4-8161 Canadian Affiliate — Member Toronto, Montreal and Canadian Stock Exchanges Montreal Winnipeg Vancouver Halifax THE COMMERCIAL and 12 Mr. 1& Mrs. Dominick D. Loughy, La Maison Bienvenu Ltee., Montreal; Mr. & Mrs. W. M. Dietrich, Nesbitt, Thomson and Company, Ltd., Montreal; H. W. Andrews, Graham, Armstrong Securities Ltd., Mr. & Mrs. V. Bankers F. Schuler, Burns Bros. & Denton, Corporation, Ltd., Kitchener; Bond Mr. & Dealers' Investment Montreal -fr.'X'U.i. ' Thursday, July 2, 1959 FINANCIAL CHRONICLE Ltd., Toronto; Mr. & Mrs. Paul A. Fleming, Bill Walker, Secretary and Treasurer, Association of Canada :-/'x Mrs. T. J. Harrison, McLeod, Young, Weir & Co., Ltd., Winnipeg; Mr. & Mrs. K. G. Russell, McLeod, Young, Weir & Co., Ltd., Vancouver; Mr. & Mrs. L. E. Barlow, McLeod, Young, Weir & Co., Ltd., Toronto Mr. & Mrs. F. P. Mallon, McLeod, Young, Weir & Co., Ltd., Toronto; Mr. & Mrs. C. McLeod, Young, Weir & Co., Ltd., Calgary; Mr. & Mrs. F. W. Robson, McLeod, Young, Weir, Inc., New York City MIRACLES \ ■ • -. Underwriting Distributing • Mawer, IN MINERALS Complete Facilities For • M. „ , " " l' " Trading • Burns Bros. & Denton, Inc. Canada todav is the world's foremost - producer of nickel and important source of gold, uranium, cobalt, magnesium, lead, iron ore, platinum, zinc, copper and cadmium. Many of Canada's most valuable mineral discoveries^ in¬ cluding petroleum, have been made just since 1945. Vast undeveloped reserves are still being explored. 2 BROADWAY asbestos, and NEW YORK 4, NEW YORK ~ DIgby 4-3870 In recent metals have an years, Deen modern facilities for extracting and refining built in Canada, , including the wdrld's largest uranium and asbestos mills. Businessmen who seek information * Affiliated with: Burns Bros. & Company Ltd. Members: The Toronto Stock Exchange on Canada's mineral We do not Members: of Canada Head Office—Toronto Direct Wire Service To: More than 800 branches London Winnipeg Ottawa Vancouver Montreal Hamilton New York write us.- —• • # OF COMMERCE A Toronto to THE CANADIAN BANK The Investment Dealers' Association invited In Canada, it's Burns Bros. & Denton Ltd. The Canadian Stock Exchange resources are advise regarding speculative securities. Branches also in 1, Canada across Canada London, England; New York, San Francisco, Los Angeles, Bridgetown, Barbados; Kingston, Ochos Bios and Port Antonio, Jamaica; Port of Spain and St. James, Trinidad; Nassau, Bahamas. Seattle, Portland, Ore.; Resident Representatives in Chicago, III.; Dallas, Texas Number Convention Mr. & THE COMMERCIAL and FINANCIAL CHRONICLE Mrs. Roger Wilson, Goodwin Harris & Co., Ltd., Toronto; Mr. & Mrs. James D. L. Surgey, Barclay & Crawford, Toronto; Mr. & Mrs. Nigel Stephens, H. B. Housser & Co., Toronto Continued from 5 page Landmarks of Tomorrow countries. And both, it is worth experiencing unparal¬ noting, are leled prosperity. There are in¬ dications, too, that France in fu¬ ture will avoid the inflationary treadmill and closer to the move tried and tested monetary and fis¬ cal policies which make for & sound currency nomic growth. would well do termined drive and for real in We to Canada heed abroad eco¬ this de¬ for sound and to consider its impli¬ cations in terms of trade and in¬ money vestment for our own country's future! and the goal of economic expansion growth and enterprise function but is only a also side by side, good thing in itself, essential to Canada's growth and prosperity. This as¬ sumption is not without historical justification—at least so far as transportation is concerned. The important thing, however, is that the role of enterprise, whether it be privately or publicly-owned, should be essentially the same. In transportation, as in other indus¬ tries, the guiding principle of management must be to produce services at prices which consumers are able and willing to pay, and to do so at a cost con¬ necessary I as for task the pri¬ enterprise system less no paint glowing pictures of the sup¬ econ¬ posed blessings of public owner¬ of try. < Bruce How to Stop Subtle Erosion If this subtle erosion of the free economy is to halted, then I who believe enterprise must be be suggest that all of in private ready at things. every all We us times possible complishments to occasion of growth intensive conditions of petition which confront and abroad. on com¬ both at Those prin¬ be found in profit-and-loss system. the False are may Accusation As practitioners of the free market, we need no conversion to the merits of private enterprise. It is, however, an undeniable fact that skillful paigns insidious and cam¬ being conducted by powerful groups both in Canada are Canadian and the United States to persuade us that private enterprise is un¬ validity of these five common¬ place assumptions because I be¬ equal to the challenge of our times, and that other systems hold promise of greater and more rapid lieve that their existence tends to economic and social Investment Securities progress. ___ thinking and to cloak from our gaze the realities of the situation confronting Canada to¬ day and in the years immediately our ahead. If nation, we that the we are to prosper accept the must international as a fact economy is No 1ss9 economic tion system can func¬ discipline.- In the without market economy the discipline is vested in the millions of individ¬ ual citizens Their who are consumers. decisions, freely made, de¬ termine how Our materials and likely to be less dependent on us money are allocated in the pro-, in the future than in the past. We duction of goods and services. must accept the fact that leader-, Savings, under such a system, are ship is not ours by right but must voluntary. Money is invested not be earned. Above all, we must at the whim of the State, but ac¬ the make strengthening of our cording to of ^belief men, the investor's Tirim that limited Member: The Investment Dealers' Association of Canada Provincial, Municipal and Corporate Securities. It is and invested money earn organization is actively engaged in under¬ writing and distributing Canadian Government, knowl¬ his needs consumer ^meeting those needs will Midland Securities Corpn. also equipped to execute orders in for savings are not the in which capital for¬ take place. Forced savings through taxation can also result in capital formation. So, too, can forced savings through inflation, in which the State gains at the expense of private savings. Under these two latter systems, however, the discipline lies not in Government, Municipal Corporation Securities the all reasonable reward. a Your only manner mation may • on Canadian Stock Exchanges. Voluntary ESI 1959 decisions free of Inquiries Are Invited consumers " and The Midland Company of the well N-as •: Montreal Stock . Exchange 1 • Exchange • V • • . . • ' ; of Canadian Stock Exchange the on the all Exchanges Montreal: 215 St. James London: Huron & Erie Building St. Thomas: 354 Talbot Street Sault Ste. Marie: Midland Kitchener: 2 State enhance to Street West Queen Street North infringe their dominate upon Those socialism who and . < Canadian Affiliates in Toronto Montreal Calgary Vancouver - investor to decisions in the the badge of private enter¬ prise openly and are tively few in .number. dangerous to freedom Boston * to wear attack' New York power the rights of and the own Incorporated compro-r, the light of supply and demand. Both bespeak the managed economy, controlled by State planners. - economic—is Both consumer make A. E. Ames & Co. power Under such itself. regiment the lives of its citizens. Toronto: 50 Kin* Street Weat Building the freedom itself—political as mised. Both Stock Orders Executed State systems, limited Member: The Toronto Stock investors, but in compara¬ Far more are those and other Canadian Cities London, England Winnipeg Victoria on ac¬ enter- page under us three the private Continued - do proclaim must it, is to seek out and those principles of eco¬ conduct which offer the capital without regard cost, then sound economic prin¬ ciples governing growth and prog¬ cloud Kippen, see the home to . and bring, can of com¬ all taining* dynamic edge Canadian piecemeal, destruction ship and nationalization of indus¬ ciples, I suggest, I have ventured to examine the the Mr. & Mrs. best assurance of success in main¬ to payer. achieve in we immediate nomic No longer can we assume the tendency is for the publiclycomplacency that the dollar owned sector of the economy to is the only really sound and re¬ expand, while the privatelyliable currency in the world. owned sector, under the duress of f ^ Finally, there is the assump¬ unfair and unequal competition tion that the mixed economy, in for nbcessary capital, is placed in which state enterprise and private jeopardy. * is not which rules, including penalty for fail¬ ure in meeting the test of the marketplace, then competition with private enterprise would be possible without prejudice to the principles of the market mecha¬ nism. But if public enterprise has with abhor socialism policies which, advocate pursued about to profess vate The us, who surely than those who unabashed re-affirm jeopardized and an added is imposed on the tax¬ Under such circumstances, MacKenzie, Greenshields & Co., Inc., Montreal; Pippen & Co., Inc., Montreal full peting in the international If burden important more omy. public enterprise in Canada were subject to the same ground S. economic success ress important as employment, indeed, growth and full employment will depend on the Sector P. if both Mixed Economy Threatens access J. policy—an objective an.d employees alike. Private Mrs. but who as sistent with reasonable reward to investors & capacity to compete a central ob¬ jective of national and business than know, too, that excessive taxation is a grave deterrent to investment and to industrial growth. This knowledge is reflected in the public policies of both these Mr. 13 14 Mr. Mr. & Allan Mrs. Continued Company, Ltd., Toronto; Mr. Cochran, Murray & Co., Ltd., Toronto & Duncan, Annett & from page Mrs. & Mrs. Jack Pequegnat, Mickey McBride, Midland Securities Corpn. Ltd., Toronto; Jack Dillon, Carlile & McCarthy, Ltd., Calgary; houses, investment —the the insurance com¬ the chartered banks, cr by company directors who in¬ vest retained earnings on behalf and small, panies and Landmarks of Tomorrow prise material the of terms in clearly how the pri¬ vate enterprise system works. And we must be ever vigilant to de¬ understand fallacies the molish truths uttered half- and by those who seek, otherwise, to un¬ dermine and destroy faith in the consciously or private enterprise system. Of these three office tasks, the first Glance out of your is the easiest. window, drive or around city and in tjie surrounding country. Look at the office build¬ your ings, stores and factories, the mills, mines, oil and gas wells, the refineries, power plants, farms and ranches, the complex facil¬ ities of transportation and com¬ munication, ranging from the newspaper delivery boy on his bicycle to the great aircraft jet-prop four-engine soaring across the sky at more than 4G0 miles an throngs of of shoppers on the city streets, buy¬ ing, using and enjoying an infi¬ nite variety of goods and services. Consider the high living stand¬ of Watch hour. this which ards the maze of enter¬ has made possible for or¬ dinary people everywhere in Canada—living standards the like cf which our grandfathers could not have imagined possible. prise The: answer, clearly, is that dustry and " agriculture .and in¬ the outpouring of goods and services which flow from them terial fruits of are the ma¬ people's savings— freely invested for the most part by individual the selves or by savers them¬ their chosen repre- their shareholders. Such of The won¬ enterprise. that is it symbols tangible the are private der so take many these symbols,.for granted, never pondering their significance in terms of their contribution to economic social and progress, Depend on and-loss Country's Capacity basis. and not Have tributed to to these social our also and extent the to which these point, the little rural red oneschool farm be of¬ to better fered in Canada. For • free to transport mechanization, and improved THE AXE-HOUGHTON x# FUNDS: "A" For suggestions on the best ways investors may partici¬ pate in the anticipated growth of" the Canadian economy. • For "B" "STOCK" cooperation in marketing a block of inactive stock must be sold by trustees liquidating an estate. which Our company has the experience and facilities requests—and rate many more. Executives and Securities Dealers us on any to fulfill these i Institutional Investors, Corpo¬ Canadian financial are invited to Ml SCIENCE consult £ & ELECTRONICS | matter. '§ Gairdner S All Major Canadian Stock Calgary I Company Limited Member: The Investment Dealers'Association 320 CORPORATION of Canada Exchanges ' ' AXE-TEMPLETON GROWTH FUND Bay Street, Toronto, Canada London Oakville Edmonton Hamilton Kingston Montreal Ottawa Vancouver Halifax Kitchener New York Quebec Winnipeg OF CANADA, LTD. Toronto Affiliate: Distributed by Gairdner 60 Wall & Company Inc. Street, New York 5 • AXE SECURITIES CORP. * TARRYTOWN, N. Y. I free a be to application economy. risk, the compensating of The greater the prospect of profit attract capital. it's the consumer provides the inducement for his of what mines deter¬ consumer returns investment each or tem that the profit-and-loss works only in investment dealers and sys¬ favor of large cor¬ Nothing could be far¬ In fact, most of "us would find our jobs consid¬ erably easier if we did not have to work under the discipline' of porations. ther from the truth. the the profit-and-loss regulator. case of corporate In manage¬ ment, this discipline is twofold. It is imposed on the one side by the consumer and on the other by the investor. On the one hand, man¬ agement's prospects of showing a profit are wholly dependent upon the ability to win consumer pa¬ tronage. On the other hand, will¬ ingness of the investor to make capital available to management is wholly dependent upon the prospects of a reasonable return investment. the in choices numerous marketplace the rewards in¬ The merits. vestor, always seeking the highest rewards, aided by the experienced counsel of the investment dealer, directs capital more production of the and toward those which services goods hold the most of consumer preference, and less capital toward industries producing goods and services promise find which less favor. consumer supply and demand har¬ are monized in the free market econ¬ im¬ the omy posed What I have said about the relation in vestor Many people are under the illu¬ sion on tempor¬ • 1 under economy Canadian capital borrowing money or utilizing surplus funds by use of short term paper. ary enterprise - For assistance in • outdoor its farming methods. up-to-date information relating markets. with investor, the who the saver to invest. By the exercise through the discipline on the producer by profit-and-loss regulator. in the in command distribution -and greater, the - that The desire of profit-and-loss system is from the consumer through the producer to Thus must economic . the profitRisk and the of chain Toronto profit and the fear of loss is the regulator which governs the capital con¬ well-being?" They most assuredly have. The point to remember, however, is principles system. for standard of living our plumbing and pot-bellied woodburning stove gave way to the modern centrally-heated consoli¬ dated town school only as the underwriting of securities and to understand how the vestment is evaluated. universities, the churches and hospitals, streets, roads and parks and many other services operated either by. government or by pri¬ vate associations on 'a non-profit and prospered the best prospect of return on capital are the yardsticks by which an in¬ at this point, schools, colleges Someone may say "What about the room on The market economy works, I suggest, is to grasp the fundamental yet simple Services Public my For advice truths. surest way security and to employment. important services are available us is directly dependent upon the productive capacity of the economy as a whole'. To illustrate • economic to to We Are Asked... Most . Do this, then ask yourselves this simple question: Whence came the capital capable of creating these industries and the wealth of goods and services which they produce? economists, specialists, have a jar¬ gon of their own which may be necessary in communicating to themselves fine points of eco¬ nomic theory, but which is ob¬ scure to those in search of homely unintelligible. like other Co., Ltd., The private en¬ system works is a more formidable assignment. Much of the literature on the subject is terprise great ■ Bellman Mason, Anderson & To describe how the in the investment field senlatives 13 progress and social well-being of the Canadian people. We must Thursday, July 2, 1959 CHRONICLE THE COMMERCIAL and FINANCIAL 14 to the in¬ market applies also to the worker Wages employed in and salaries of those business enterprise—including in¬ workers, specialists and professional management — are dustrial wholly dependent upon .consumer patronage. Here again, as in the of case tem, the capital, workers the under are free, private enterprise sys¬ to sell their services where highest rewards are offered. Here and again, the allocation of labor reward is ultimately de¬ its termined ensuing by the mobility force the the is most made well of as best consumer. efficient the the of The labor assurance use that will country's human material be as resources. Attacks Inflation and Restrictions Now whb, just a word consciously or those otherwise, about Number Convention Mr. & Mrs. John THE Schultz, Dominion Securities Corpn. Ltd., Toronto; Wood, the parrot faith mine I fallacies which truths have to threat our referred ;■ to that lies confidence measure a and in store money undermine inflation can incentive to save, thus leading further the control over in to State over tion both wages prices. As such itris not only a robber of the poor, but a destroyer and political. We must) therefore, be ever vigilant to give the lie to those who say that "a little inflation is a good thing." Flexibility is an essential element in our system. Artificial rigidities clog the gears of selfregulation and bar the way to well-balanced economic growth, freedom, Practices economic both are No aware, longer and workman's the have un- old age insurance, like to cushion is highly competitive. can it be said that the communication. Instead, the in the final analysis, the amount impose the do in may efficiently—policies which the owners of capital the but by network a airlines pipelines, inland of highways, and improved waterways, communication in and field not In its present May what I now say Canadian something Pacific has drive to step up sought and Continued on MINES URANIUM "tailored" to for ores, the one of direct-shipping, now has Canada's of integrated plants ore-handling, treating and grading, designed the Annual new buyer requirements and all during the 1959 season. capacity is being steadily increased in line with market demand to the objective of MINES LIMITED 5,500,000 PRONTO URANIUM as f in the Superior district. modern group to meet LIMITED ores source addition, the Company most MINES LIMITED URANIUM of been in service URANIUM ores MINES from mines directly-operated and tons LIMITED EXPLORATION 3,000,000 LIMITED tons from mines under lease to others. STEEP ROCK IRON MINES LIMITED Steep Rock, Ontario \ — won page precise specifications and higher quality. The Rio Tinto Group in Canada has recognition of the fact that plant industry increasingly demands iron of In RIO TINTO CANADIAN elsewhere, some the productivity and operating efficiency, the steel high-grade LAKE Pacific, in public before the Board of Transport Commissioners and only by Steep Rock is already established MILLIKEN Canadian hearings exacting requirements major Canadian NORTHSPAN and television networks. coun¬ try is served not only by railways This is the trend ALGOM telegraphs but by telephone, radio to meet day, practices which require Qf benefit payments that can be men to be employed where there sustained under social legislation is no useful work for them to do, is dependent upon the health and or which prevent new machines vigor of the economy as a whole, and new methods from being used Railroads No Longer Monopolize deny you a virtual monopoly transportation and IRON ORIS one most as overland of Mr. & Mrs. James Wilson, Partners, Ltd., Toronto; & Co., Ltd., Toronto exposure let the market economy operate to its maximum efficiency because which today, railways enjoy & Ames the amount of work man Harris compensa- unreasonable limitations upon a Harris, legislation. I We sense. of individuals to the insecurity of the market economy. which deny the right to—Now that we_ have provided for the right'to sell one's social security, it behooves us to work, or services, practices William A. E. Transportation hardships of misfortune, to tide people over periods of adjustment and to put a floor under the living standards of everyone. I submit that, provided social legislation is based on sound economic princi-r pies, its benefits can be had without impairing the essential mechanism of the fre economy.-Indeed, social legislation has removed the only vaild criticism of the free enterprise system — namely the and of social the social about pensions, investment. Inflation, by the State Mrs. 15 advocating "laissez-faire" employment too, is an open invitation to control not am private of extension word a value, of & all in inflation. Inflation, as said, can destroy our abili- to maintain them—we must chalty to remain competitive and lenge all restrictive practices as undermine our prosperity by, attacks on the welfare of the denying us access to world mar- country. kets .for our exports. And by At this point it is fitting to. say as Mr. 'r-.-u. effective I have weakening Morgan, a investment—these freedom, the national well-being already Mr. & Mrs. R. T. Ltd., Toronto freedom to earn under- to economic Co., fair return on and is doing to give effect in the impair the realm of transportation to these working of the free principles of economic freedom economy. If we want our high upon which, I suggest, our very wage rates to remain a source of prosperity and progress as a na¬ productivity—indeed, if we want tion depends. half- and threaten in Gundy & COMMERCIAL and FINANCIAL CHRONICLE in the Lake Superior Region. 16 i6 THE.COMMERCIAL and FINANCIAL CHRONICLE Mr. & Mrs. Douglas Deans, Bankers Bond Corporation Limited, Eastern Securities Continued from Toronto; Mr. & Mrs. William Moore, Company, Ltd., Halifax & Mrs. G. S. riment of shippers, consumers and 15 page Mr. , alike. A fair solu¬ tion to the problem of statutory grain rates is an imperative if the Canadian people are to reap the full potential benefits of rail transportation. Representatives of investors will be particularly interested in ef¬ forts we have made to gain adop¬ railway Landmarks of Tomorrow competition in transportation calls relaxation of those aspects of rail regulation which were appro¬ priate half a century ago but which are wholly inappropriate to today's competitive transportation scene. Such recognition is found for found, too, in the recognition given, in conciliation and arbitra¬ tion proceedings in labor cases, to such anachronisms in the freight rate structure found in the tion owners Thursday, July 2, 1959 Swindell, Wood, Gundy & Co., Ltd., Winnipeg; Mr. $ Mrs. Roy Beale, Wood, Gundy & Co., Ltd., Vancouver the fact that rail transport, under today's highly competitive condi¬ tions, should be governed to a greater extent by market forces and to a lesser extent by outdated regulation and restrictive labor practices which hamper techno¬ logical progress in transportation. decision recent to eliminate the eight districts through which the railway is now administered and to add additional one regional headquarters, making four in all, from which the divisional organ¬ izations be of the entire system will directly administered. The recording, transmission and Pacific, too, has been to im¬ processing of vast masses of data Canadian alert to every opportunity the "rate-base—rate of in the operation and prove the operational efficiency required principle in determining of its rail enterprise. Diesel control of a railway system is permissive level of railway power, representing an investment being streamlined by integrated in the approval by processing government tury prices trying to live with earnings. This principle is almost to the end of 1958 of nearly $200 data using modern universally accepted by regulatory million, is now performing over electronic and communication and parliament of the railways' 20th century costs, resulting in tribunals in fixing the level of equipment. 90% of railway services, at sav¬ efforts to meet c o\n petition distortions in the freight rate public utility earnings, in recog¬ ings totaling some $49 million per Many other examples of prog¬ through agreed charges. It is structure which work to the det- nition of the fact that in order to annum. We have been making ress could be cited. Let me men¬ attract capital into an industry, steady progress, too,' in cutting tion only one. Because Canadian the investors must be given an down unprofitable passenger train Pacific is a transportation enter¬ opportunity to earn a fair return services, with a reduction since prise in the broadest sense, we as are statutory rates on grain and grain products. Here we have 19th cen¬ of n return" the - investment—at on protecting duly high absence BELL, GOUINLOCK & COMPANY of LIMITID W ESTABLISHED return 25 KING STREET WEST, TORONTO ranged which UNDERWRITERS AND DISTRIBUTORS OF is * . MEMBERS MONTREAL STOCK EXCHANGE recent peatedly NEW YORK MONTREAL in rail The Investment Dealers' Association The Toronto Stock of Canada Exchange" this Pacific stated and could be used level in¬ net as that a hamper Securities labor Exchanges STREET WEST 414 TORONTO EMpire ST. JAMES ST. MONTREAL 4-4441 Victor • Sarnia • available now on 6,000 an and the terprise cific in of our now extend from coast to coast, offering great possibilities of savings and improved service to shippers. New methods of han¬ dling terminal operations have al¬ Orillia 9-8038 with and government that the same en¬ eco¬ nomic discipline should apply to both, in civil aviation as well as land transport. I cite these examples of progress only to illustrate the spur to ef¬ ficiency ever and prudence which is present when management is expeditious answerable to private owners of movement of freight cars, better capital. Over the past 10 years service and higher utilization of Canadian Pacific has financed out of its own resources or on its own equipment and staff. Nor have we overlooked the credit, and at no cost to the tax¬ ready resulted in economies ciency modern and of more and that are methods improved effi¬ possible from of administration. our efforts in organization example An this area is a of Canada, a program of improvements to its rail enter¬ prise alone costing in excess of payers $780 years, million. Over confident the that next we 10 will Members Toronto Stock public alike of and Montreal Stock the right to operate and yard diesel locomo¬ tives without a fireman. Both the Investment Dealers' Assn. of Canada Private Wires Montreal 6-8 Jordan Street, Toronto, Em. 3-7151 Branch Offices: Fort William and Port Board and the Kellock Royal Commission found that there was no useful work for firemen on such locomotives > they highlight Canadian Pacific's to secure recognition \ New York Fort William Arthur, Port Arthur Ontario and Buffalo to I mention these matters because efforts Exchange Winnipeg Grain Exchange a Commission, and two won Exchange economies by freight WEST terms railway serving 21 cities. Highway operations owned and controlled by Canadian Pa¬ miles flight between Montreal, Winnipeg and Van¬ way But we believe that pri¬ enterprise should be given opportunity to compete on even which perform. London is it Conciliation KING expanding kits highway freight services. Common carrier piggy¬ and deprive the progress possible strikes, Private Wires to New York and all Branches 44 Toronto, technological progress. Canadian Pacific, in 1958, following a prolonged labor dispute involving thorough in¬ vestigation of the matter by a Royal all sense, Canadian Pacific has moved quickly, too, in the devel¬ test Federal Conciliation Board and on present, Cana¬ of practices advantages made municipal the test. restrictive dealers government, Orders executed in For earning power. Thus far, however, it has not increased the permissive earn¬ ing power by reference to such a the Corporation Canadian proper investor and of the months daily each trans¬ Among the railways of this con¬ tinent, Canadian Pacific has taken the lead in seeking the removal of Members and "rate-base—rate establish 1954 the of underwriters the property felt Canadian re¬ the principle for the. so"requirements formula" it vestment Company have upon return" called & we this of Transport Commission¬ Although the Board has never ers. did in railways Board of limited years, urged substituted R. a. Daly indeed the and whole enjoy no such monop¬ a few est a back virtual monopoly. When a last portation enterprise in the broad¬ As joying In LIMITED loco¬ the dian Pacific Air Lines is restricted to the operation of only one motive-hauled trains. couver. . LEGGAT, BELL, GOUINLOCK conventional in pioneered in the introduction of competition in domestic civil vate a hunting license permitting a reasonable rate of return becomes all the stronger. INCORPORATED passenger opment of piggyback services and nor¬ oly, but on the contrary are subjected increasingly to the rigors of competition, the case for AFFILIATES 64 WALL STREET in in in as GOVERNMENT, MUNICIPAL BELL, GOUINLOCK & CO. diesel 3.5% is aviation. many it is considered that the Canadian CORPORATE SECURITIES AND to what for and the to property 2%. below cars 17% mally regarded as a fair return on a public utility—even one en¬ Pacific, CANADIAN from far have runs train the substitution of of more economic rail of miles investment net on 1950 un¬ period, the rate Canadian Pacific railway 1920 has ■4 of time same against charges owing competition. the postwar In the consumers of Affiliate: Watt <ft Watt Incorporated 70 Pine Street, New York S, N. Y. to - Convention Number Mr. Mrs. E. & THE COMMERCIAL and FINANCIAL CHRONICLE W. Pyatt, Wood, Gundy & Co., Ltd., Toronto; Gundy & Wood, the overcome other regulatpry which problems Canadian Pacific is and face enterprise planning is to Mrs. P. J. Chadsey, # essential maintenance of us, Mr. being we so, a the to reject without may the replacements and improvement of those who say that private enter¬ rail prise is moved solely by properties. tion that believe We should resources fair chance to be their earn given own risk the were should men well the Instead, to take occasionally Canadian of EXECUTIVE FUND I do Let us, What I do social conscience. when role of private in defense terest. For of truth The the is enterprise know that private we than 4,700. more towards of which social our welfare big the customers accelerated of use to 62,409 at 1950 in¬ „and banking 44,161 in the end of 1958. Capital Funds Increased Another statism prosperity our bank in and development that industry has Geoffrion, Robert & Gelinas, Inc. the been Members Investment Dealers' Ass'n of Canada sharp increase in the capital funds of the chartered depend. has featured the last nine years in the conduct banking economic with pace it all economy—and steady drift upon in¬ social basic a OF CANADA the banking. of creased their staffs from economy—the for, both by word and deed,- .principles act we have so services, the chartered banks in¬ stand ready we free will undermine belief in the very speak of the vital we the efficient stands monopoly of a unless For their enterprise is in duty of good citizen¬ a defend to is question, however, that ship. sincerity opposing views. their claim to hold truth keep crease then, remember that the defense of private all question the from 3,650 to To will be lost. not years, the The number of branches has gone change and up enterprise needs to be heard or its of those who hold in grown progress. pursuing. The voice of free message have physical proportions stagnation and upon nine past the of services ing stagnation. practitioners their sights set bearings by reviewing these principles in relation to the course are Doing And Should Do of our we 7 page Banking- What It's a concern purpose welcome free market abhor is from private enterprise, then business¬ investment. It sneers profits. If safety and freedom from a way by producing a reasonable return on slightest qualm vthe for substantial transporta-^ Continued Cayley, Wills, Bickle & Company "Ltd., Toronto; Mr. & Mrs. J. G. Weir, Wood, Gixndy & Co., Ltd., Toronto free society. This invest about $900 million more on these very Mr. & Mrs. Hugh Company Ltd., Toronto 17 since 1954. By banks, most of it combination a INVESMENTT DEALERS of setting aside profits and the sale 1 UNDERWRITING of additional >bank shares, practi¬ cally $500 million has been added to the paid-up capital and funds of the banks. Members capital funds to DISTRIBUTION finance to bank "retail" new a underwriting through international network of offices in the United Canada and individual broad market through branches. This Canadian behind tury The a of service up to this private wire system to all headquarters of activities has it, built directly connected our wide range a expanding of facilities during three-quarters of a cen¬ Stock Exchange 507 Place d'Armes, Montreal de¬ And in the pro¬ been in¬ relatively and ab¬ has m. solutely. holdings. office is Canadian ownership of the banks creased, both Europe, it is widely distributed in small, Our Toronto our chartered States, ' Stock Exchange the big increase in as branches. Canadian cess, our Exchange Toronto business, growth and such velopments Stock with cope the expanded volume of we Montreal This has given the banks addi¬ tional When Geoffrion, Robert & Gelinas, Co. reserve I the number increased Mm* from sented Canadians shares. In sented 72.34% owning yORK. 6, repre¬ 76.62% of all bank share¬ holders, 1|| Canadian inve 61,800 in 1950 to 88,496 at the end of 1958. In 1950, KB shareholders of of has banks of 1U5 BROADWAY opiated ldth all 1958, Canadians repre¬ 79.02% of all bank share¬ holders, owning 72.71%. I merely to investors. — — __ add that few major industries in this country can match this record of Canadian ownership. In all this Founded 1879 MEMBERS AND NEW OTHER MAIN I YORK. AMERICAN LEADING STOCK OFFICE: 36 TORONTO AND COMMODITY WALL STOCK EXCHANGES EXCHANGES STREET, NEW YORK 5 development mained the 360 HAMILTON: 20 London • Geneva • BAY STREET KING Paris L STREET (Affiliate) • EAST • Empire 8-4871 • Jackson 8-4281 Mexico City (Correspondent) has re¬ — the personalized come That has strengthened dians mined can tradition. as and millions of Cana¬ attest. policy bankers to maintained been It of keep it is all the deter¬ banks as our and greatest "^ence & c°- Milne*' expect of the banking system. mm factor one same: service that Canadians have to TORONTO: startling growth and , AND m Spenc THE COMMERCIAL and FINANCIAL 18 Mr. Charles Mrs. & Continued Robinson, C. S. Robinson Investments Ltd., Calgary; Lloyd Knowler, Osier, Hammond & Nanton, Edmonton from Mr; Mr. Mrs. tell of Canada's Growth Prospects and Role of U. S. A/s Investment the Prime Minister several and "Canadians companies emphasizing continuously the ne¬ cessity for American corporations to review the policies they were pursuing with respect to their Ca¬ should nadian based subsidiaries.. Our Prime Minister put the Ca¬ nadian position in these terms: not that regard the of extension ask investing firms op¬ as That there is an for when I be cies take account in their direction of the interests of Canadians."3 another occasion investors in Can¬ American ada have given rise to strong feel¬ Treasury Bills Provincial and Municipal Debentures Corporate Bonds and Shares have have made ful effort invested a in Canada genuine and success¬ to be Canadian and to that in act Government of Canada Bonds ]\4any, perhaps most American corporations spirit, but there are many others which through either thoughtlessness or for other rea¬ in sons, and as result a have some of cases deliberate created perhaps policy, Canadian resent¬ ment.; I refer in particular to the policy of States EQUITABLE SECURITIES CANADA LIMITED Member of The Investment Dealers' Association of Canada EQUITABLE BROKERS LIMITED Member of The Toronto Stock Exchange We creation WINDSOR U. S. Associated Direct • HAMILTON .• KITCHENER have sought by tax inducements of • HALIFAX New the participation to greater autonomy given to local management, v statements the growing concern of the Canadian public-about the role and the man¬ ner in which foreign controlled companies, including U. S. corpo¬ rations, operate in Canada. In keeping with the emphasis on private enterprise in Canada, the Federal Government is hoping that the advice it has been offer¬ ing to heeded cerned. ever, private industry will be by the companies con¬ The Government is, how¬ giving some thought to what further inducement it could offer to encourage growing participation in our Canadian national de¬ Industrial Development— Interests, address by the Churchill, Minister of Trade and Commerce, to the Canadian-Amer¬ ican Trade and Industry Conference, Chicago, Illinois, Nov. 12, 1958, p. 6. 5 Trade Our and Common Hon. Gordon will have an opportunity of participating."6 Another example is the provision in the Bill to es¬ tablish a National Energy Board, presently before the House of Commons, giving the Board au¬ thority to ". take into account ital . . . , the extent to which Canadians . will have an opportunity of is L. G. BEAUBIEN * C° not to construct an or the in an oil "We There is Province of QUEBEC or 6 House of Commons, Standing Com¬ Forests and Waters, Proceedings—and Evidence, April 30, 1959, p. 350. 7 Bill C-49, An Act to provide for the establishment of a National Energy Board, 2nd Session, 24th Parliament, 7-8 Elizabeth II, 1959, The House of Commons of Canada, page 14, Section 44, clause (d). Minutes Mines, on of Corporation Securities CASGRAIN & COMPANY LIMITED 33 St. James Street West MONTREAL opposed to foreign VI 2=3466 500 fear real anti- no Government know policy capital perfectly well sources, that you need have not sufficient DEALERS Specialists in Securities Originating in the ( . own Members The Investment Dealers' Association of Canada to develop development. government is Fabriques, in Canadian opment of Religious Institutions. STREET, WEST that them, that capital of them. We know that your capital investment is playing a major part in Can¬ ada's Government, Municipal, Corporation, present development. our our objectives. - resources trade So your § intensely interested pansion of bring in The INVESTMENT SECURITIES are allay capital, Devel¬ and our ex¬ main fears, will help your we Societe de Placements MONTREAL 1 3 Great Issues Sherbrooke Moncton St. Hyacinthe Chicoutimi Paris Brussels pipe line line. have very valuable natural re¬ our Trois-Rivieres gas power Canadians Insist Increase irigly on Greater Financial Par¬ ticipation. The copcern of the Com¬ and real alarm no. we Ottawa or international Why investment. , we Quebec par¬ financing, en¬ gineering and construction of the line,"7 before granting a certificate ticipating Canadian Government, Municipal Suite Americanism. Montreal indi¬ the extent to which Canadian cap¬ mittee velopment, particularly in the re¬ as in Canada. 221 NOTRE DAME he Minister, my own Trade of merce, dealt with the concern be¬ ing expressed in the United States York "There is School Commissions, Parishes and when in to words: . Resources that oil and natural gas in some people have de¬ "growing nationalism" or "anti-American feelings.*' Mr. Churchill summed up the Cana¬ dian Government position in these AND reflect and recently Minister scribed UNDERWRITERS cated granting leases for exploration on Grown owned properties, the Gov¬ ernment may take into account wish to consider in formulating "the financial responsibility and operating policies for their sub¬ sidiaries in Canada ranging all' financial structure of the bidding companies and take into account the way from increased Canadian proceeded to offerAmerican parent companies eight specific points which they may re¬ about what LIMITED example the such corporations to investment by Canadians More Company: Kleinwort, Sons & Co., Ltd., London, Eng. Co., tional Then the Minister of Trade and corporations."4 Goldman. Sachs & such "the in Subsidiary: Equisec Canada Inc. private wire with One recent statement by the Min¬ ister of Northern Affairs and Na¬ a encourage Street, Toronto, Canada admit • establish¬ of are engaged on a large scale the development of Canadian 1 Head Office MONTREAL large United very ing subsidiaries in Canada and denying to Canadians any oppor¬ tunity whatever of participating in the ownership of stock in such companies, especially when they sources. 60 Yonge some corporations Mrs. Ted MstcDonald, & field. sources is ours."6 These is with regret that I say to that the policies followed^by which Dealers Co., Lethbridge; Mr. Limited, Vancouver use it- wisely. Your future prosperity is closely linked with to say: "It even Distributors the Minis¬ ter of Finance had this you & Securities you Cana¬ external ings of irritation. Underwriters to than no potential ownership as long as companies engaged in these industries are developed in Canada's interests, and their poli¬ On cause clear seems would in some questioning offers stock mar¬ ket; that they should be incorpo¬ rated as Canadian companies mak¬ ing available equity stock to Ca¬ nadians: Meredith, Ringland, Meredith Commerce "There harm Canada Canada American in four one more dians." American in Roy that it is estimated that you American-controlled erating in Canada not members of his Cabinet have been Mrs. & Pemberton 6 page & Thursday, July 2, 1959 CHRONICLE Shawinigan Sorel in the Anglo-CanadianAmerican Community, address by the Prime Minister of Canada, the Right Honourable John G. Diefenbaker, Dart¬ mouth College, New Hampshire, Sept. 7, 1957, p. Members Investment Dealers' Ass'n of Canada 275 St. James Street W. MONTREAL 4. 4 Address by the Hon. Donald M. Fleming, Minister of Finance of Canada, to the Canadian Society of New York, Nov. T, 1957, pp. 9 and 10. Telephone Victor 5-6162 inc. Number Convention CHRONICLE THE COMMERCIAL and FINANCIAL ID '' ', %/Z < .?■ f:'; Hal d ...^ ... ••:■- V; Canadian U. the 2% of all the capital required by has given U. S. investors increas¬ this industry ing control of Canadian resources and and industry. Canadians, do not appear to have any objection in principle to direct investment. that What Canada. public is largely with heavy direct investment which mOre concerned is that they are not given they about Mrs. Murphy JlCommercial & Financial Chronicle, New York; F. W. Robson, McLeod, Young, Weir, Inc., New York are adequate opportunities of partici¬ pating in this derect investment in many instances. A number of American concerns operating in Canada have pursued and con¬ tinue to pursue enlightened poli¬ cies. Others have followed poli¬ S. interests. 1% Now in 1957 only from the U. S., from other countries, so 97% came Canadian from came either from retained earnings or from borrowings in sources, In manufacturing industries our U. S. 1957 are interests some 50% of controlled by but only 33% of requirements were capital U. S. financed with the remainder coming from Canadian sources. Between 80 and 85% troleum industry is of our pe¬ Mrs. F. W. Mr. prises without in many instances being able to participate in" an equity position. which to Canadians have increasing objections. true at But the Canada time. one of-tod-ay-is-a-mueh wealthier coun¬ try with a good deal more capital and enterprise available. In fact what annoys many Canadians is that with a comparatively small initial have most capital, U. S. corporations operations in commenced of Canada. in industries basic the They keep 100% control and then borrow of that company in Canada as well in the United as States debt capital to expand their operations. How Canadian Savings, sources lustrate Markets and Subsidiaries this Help Grow. to point Let Re¬ U: S. me il¬ quoting by a few more figures from the survey conducted ment of by the U. Commerce Depart¬ S. to which I referred earlier. About 65% of our mining and smelting industry is controlled by trolled but U. S. capital whole (i.e. resources and manu¬ facturing^ industries and utilities) about 55 % controlled by U. S. is interests but only 31% of the cap¬ required came from the U. S. with 67% coming from Ca¬ nadian sources and 2% from other ital funds sources. these is that a comparatively small amount of capital will suffice to estab¬ lish control of an enterprise in its early stage. Then through good management, the retaining of earnings, and borrowing, the enterprise is expanded. Canadi¬ ans contribute to the expansion of the enterprise first by buy¬ ing its products, thus making the accumulation of large profits What figures suggest in the case of resource industries by making these re¬ sources available for development. possible, or Secondly, by lending, they assist the expansion of these enter¬ in & Robson, McLeod, Mrs. C. N. Young, Mawer, Inc., New York; Weir, McLeod, Young, Weir The Royal Commission on Can¬ ada's Economic U. to believe We lightened that it the in is Toronto; future economic reasons for this optimism Canada is at different stage of development a than have the United States. still We natural resources to develop. We have a northern fron¬ tier to push back. Huge sources of many energy are waiting to be tapped. Rapid population growth is pro¬ viding us with an expanding do¬ mestic market. More and more opportunities for secondary indus¬ tries are opening up. For these and many other reasons we can Continued 6- on page COMPANY en¬ * Ameri¬ can firms to meet Canadians part way. It will make for better busi¬ ness, happier public relations and provide greater incentives for local management and employees. The end result—a profitable busi¬ ness developing in an economic climate in which private enter¬ prise is encouraged arid foreigncapital is welcomed. the Prospects of Plewman, Calgary LIMITED self-interest of Growth F. fairly obvious. are capital and natural resources are verted from the 1955 dollars used This com¬ good enough to help in the expan¬ by the Commission). sion of U. S. controlled enterprises pares with the 1959 gross national they should be given an oppor¬ product estimated at $34.5 billion. tunity to participate equity-wise, Reasons for Optimism. The prep¬ if possible in their initial phase but in any event at a later stage aration of economic projections is when expansion of the enterprises a hazardous business to say the requires additional financing. And least. But whatever source we to those who doubt the ability and willingness of Canadians to par¬ turn to we find great optimism ticipate increasingly in the financ¬ MATTHEWS J. Ltd., Canada's The s S. nity to participate in these com¬ panies operating in their country. Mrs. Co., expansion. gave us estimates of our country's Corpora¬ gross national product in 1980. from Increasing Canadian They put it at between $75 and Participation. Canadians appear $94 billion with a mean of $84 bil¬ to feel increasingly that if their lion in terms of 1958 dollars (con¬ Advantages & about also Prospects tions S. con¬ supplied only 40% of the capital require¬ SOme firms which do not allow ments of our industry in 1957, Canadian financial participation with 57 % coming from Canadian ing of foreign controlled subsidi¬ in their Canadian subsidiaries say and aries, the answer is: Try us—and 3% from other sources. see for yourselves. that when they established their operations, Canadians were not What Canadians are asking for How It Is Done prepared to share in the risks in¬ is not to take over control of U. S. For Canadian, industry as a volved. This might have been subsidiaries but for an opportu¬ cies taken U. & Established V 1909 " ; ★ Members: Toronto Stock Exchange Investment Dealers' Association of Canada " Canadian Economy The Outlook the Century. future? for Remainder of Now, how about the We know the general di¬ rection we ahead. We also know that Canada are going. fortunate enough to have had rapid rate of expansion in 15 years or so than the United States and we expect this was a 220 Bay Street Toronto, Ontario EMpire 4-5191 And that is Direct Connections with York New and Montreal more the last trend to continue. The Royal Commission I referred earlier Walwyn, Stodgell & Co Limited of $171/2 in The population of between 36 and a gross national prod- KERNAGHAN & CO. LIMITED Investment Securities 3 < • " J GOVERNMENT OF CANADA BONDS yet of 122% above the 1950 level.8 Winnipeg Stock Exchange The Investment Dealers' Association billion. This compares projections of increases 51% and. of Exchange expects Canada's population to reach 24 million by 1975, 75% above the level of 1950. Gross national product might rise to $53 billion (in 1949 prices) or over 200% above the 1950 level with U. S. Members: Toronto Stock Can¬ which on ada's Economic Prospects to The of Canada Right Honourable John G. Diefenbaker that month stated Bought Sold — this earlier Canada's — Quoted population reach 30 million from the 11 Vz million in another 20 years and 50 million or more by the end of the century.Q may present STOCK ORDERS EXECUTED ON ALL EXCHANGES S. projections are taken from Report adjusted for upward population estimates. Both Canadian and U. =S. estimates are 8 The the the STREET WEST, TORONTO WINNIPEG CORNWALL KITCHENER J . 4 Toronto EMpire 8-3871 in the report of the Royal Commission Canada's Economic Prospects, Spe¬ cial Study, "Canada—'United States Eco¬ nomic WINDSOR , U. from on EMpire 4-1131 Richmond St. W. EMpire 4-4236 Paley revision 44 KING 2nd Floor, 67 Relations", Ottawa, July 237. • by the Diefenbaker, 9 Address John G. Canada, May 1957, 8, Testimonial p. 17. 1959, Right Prime p. Members - Honourable Minister of Dinner, THOMSON KERNAGHAN & CO. LTD. Montreal, The Toronto Stock Exchange 20 Mr. & Mrs. Bruce & Co., Ltd., Vancouver; Mr. & C. Samis, Samis ... . Mr. Mrs. Norman Alexander, Mrs. Tony & Osburn, Pemberton Securities, Ltd., Vancouver; Daly, Harvey & Cooper, Toronto James Richardson & Sons, Winnipeg Continued Do you know how How about income and other business taxes? What the per¬ sonal income tax rates? to are Are there as The set up well as provincial federal taxes? to these and answers other questions- vital to the business¬ planning to set operations in Canada man business up —are to be found in our "Memorandum Re¬ lating to Carrying On Business Ip Canada". For your copy—free and without obligation operations in —write to Business Development Department, The Royal Bank of Canada, Head Office, CANADA? page 360 St. James Street West, Montreal, Canada. Canada's Growth Prospects and Role of U. S. A.'s Investment diversified and will provide ample opportunities for Canadians and others participating in our development to do well. more New York Agency—68 William Street, New York Investor ASSETS EXCEED 4 BILLION DOLLARS 571 ernment While those Major Foreign Canada. in States will source of foreign The remain United the regulations for these: the United States is becom¬ ing increasingly short of natural resources. By developing these resources in dians ada companies in as be as good their operations in Canada our American conduct of their business at home. Now, you may ask why should The opportunities for American investors have to do in well looked never these do of you may in our But well economic development. profitable opportunities ® * in framing their investment policies over the long count of the vails in Canada. foreign to take ac¬ spirit that pre¬ term, new There is no anti- anti-American feeling significance. Ca¬ nadians are just more determined or in Canada of any than Underwriters and Distributors to ever share to a greater extent in their own economic de-, velopment. Increasing of Participation and If American in¬ Public Reporting. «. Government, in Municipal, Utility, Industrial and it will mean, if you practical, the encour¬ agement of greater Canadian fi¬ nancial and managerial participa¬ tion in U. S. subsidiaries operating Institution Securities be OF CANADA LTD. Canada. in Religious FUND Canada want to Public SCUDDER is to continue to thrive vestment Public demand is also likely to for foreign firms operating grow in Canada, particularly publicly companies, to report about success of their operations in £anada. American corporations are accustomed to report fully owned the about their operations in the U. S. under SEC have SEC A Canadian open-end management investment company, investing primarily in Canadian securities which, in its management's judgment, will reflect the growth possibilities of Canadian regulations. We do not Canada, industry. regulations in legally many companies obligated to report but not alter public senti¬ ment which favors the publication of such information. Therefore, Hence, are this MONTREAL not does unless there is increased QUEBEC TROIS - RIVI E R ES% MONCTON similar to those in force in United States. Most Canadians true free avoid much as on Request the William Street Sales, Inc. are enterprisers and like to regulations as possible. But unless government Prospectus voluntary reporting, public demand may lead to the introduction of regulations the U. S. a Is country for for¬ eign investment in the world? you o as participating which offers the largest and most some that well this too much to ask for consider concessions. After all it is your money as business community Canada better. investors would American firms make what companies which will benefit Canada they are Americans in the major capital in Can¬ of U. S. business. ican parent Cana¬ in Can¬ ada not only for reasons of geog¬ raphy but also because of the en¬ terprise, vision and self-interest 5, N. Y» gov¬ foreign those who ask for increased Canadian Firm. To put development. 17. S. Will Remain OF CANADA just doing Canadians a favor by investing in Canada. - They are American firms follow enlightened doing it for good business reasons, policies when operating in Canada because it is profitable, and for other sound commercial they will by their short-sighted many behavior strengthen the hands of reasons. To mention just one of Canada, Operate as a friends are obtaining a dependable it in a nut¬ Large Amounts of Capital Re¬ shell—what Canadians expect is long-term source of supply which will keep their economy going for quired for Sound Investment. The that Americans, when they oper¬ rapid expansion which we foresee ate in Canada, behave like Cana¬ decades, if not centuries, to come. What Canadians are after is not for Canada for the remainder of dians do and accept the responsi¬ the century will require large bilities as well as enjoy the bene¬ just good neighborliness, as im¬ amounts of capital. We expect that fits of .vdoing business in an ex¬ portant as happy relations be¬ Canadian savings will supply the panding economy.- Canadians do tween the two countries are. What bulk of this capital and that our not expect American firms to do Canadians wish to see is the pur¬ country will continue to welcome any more than they would do at They would like to see suit of sensible policies by Amer¬ foreign capital to participate in home. In Canada our THE ROYAL BANK up member is that Americans are not enterprises. Future Role of U. S. Investment And since you are the capital it is up to you to decide how you manage your affairs and how you get the best returns. Now, all this is per7 fectly true. But the thing to re¬ putting expect not only a rapidly growing economy but also one that will be D. R. C. Harvey, investing. are 19 a company may be incorporated in Canada? Planning from Thursday, July 2, 1959 CHRONICLE THE COMMERCIAL and FINANCIAL 20 One William Street New York Convention Number THE COMMERCIAL and FINANCIAL CHRONICLE 21 I Don McDermid, McDermid, Leonard E. Miller & Barlow, McLeod, McDermid, Ltd., Vancouver; Mrs. Helen Moorhouse, Toronto; Young, Weir & Co., Ltd., Toronto; John C. Moorhouse, Findley Coyne, Ltd., Toronto Doug Rodomar, Calvin Mr. & Mr. & Mrs. Clark Kinnear, W. Midland C. Pitfield Securites & Co., Ltd., Montreal; Corpn. Ltd., Toronto Mickey , Mr. McBride, & Bullock, Ltd., Montreal; Alan Chippindale, Calvin Bullock, Grahame Johnson, Credit Inter provincial Ltee, Montreal; R. D. Steers, R. D. Steers & Co., Ltd., Ottawa Mrs. Peter W. Bell, Montreal; W. C. Pitfield & Co., Ltd., Victoria; Mr. & Mrs. Allan M. Rutherford, W. C. Pitfield & Co., Ltd., Calgary The Ramsay Securities Go. Limited Members ;c_i II ONE Investment Dealers' Association Ltd., Mrs. Deacon ONE WILLIAM STREET of Canada WILLIAM CANADIAN INTERNATIONAL GROWTH FUND LIMITED 197 BAY STREET, TORONTO Telephone EMpire 3-2078 FUND, inc an open-end management investment company investing in the securities of American business and indus¬ A Mail the coupon below for free Investors' a Prospectus. > is trial Copy of our monthly available Digest on , request For prospectus see your - WILLS, BICKLE & COMPANY HARES LTD. 85 Broad , i . members the investment Send exchange association of King Street West EMpire 8-3081 Toronto 1 , Street, New York 4, N. Y. me a prospectus and literature The One William Street canada Nam* 44 investment dealer or serid this coupon to WILLIAM STREET SALES, INC. of stock dealers' | One William LIMITED the toronto St., New York 4, N. Y. enterprise with emphasis on long-term capital growth possibilities and current income. Name.. -T+ Aridrpi* City Address, Stntp City State . .. on Fund, Inc. THE COMMERCIAL and 22 Frank Mrs. & Mr. Lace, Co., Toronto; & Continued from And full expression for their en¬ terprise, industry and aspirations In $42 million for the deficit in the Old Age Security Fund and about ments Praises Finance Minister Fleming Irrespective of partisan poli¬ tics, I think everyone recognizes that our Minister of Finance, Don¬ ald Fleming, has made a good be¬ ginning in tackling the complex financial problems of this nation. If Canada is to be strong finan¬ Federal into balance bring must income and and rigidly outgo contain inflationary pressures to re-estab¬ lish confidence Let in our currency. also quote from the An¬ me nual Report the Bank the Governor of Canada, James of of Coyne: believe that monetary policy "I strengthen and must determination basic the to reaffirm remain principles true of its to sound money." Now what is in fiscal current We 1959-60? at prospect for the March 31, year have a least incorporates the right direction. First of ment Budget that changes in all, the overall deficit has been down from last year govern¬ narrowed by some $400 million, with net borrowing re¬ quirements estimated at around $850 million, less, of course, the recent $150 million CNR issue and the increased this amount mated for offering of Bills. Of $393 million is esti¬ the budgetary E. Loan, refunding deficit, poses, nadian notably housing loans, Ca¬ National Railway and St. Lawrence In Seaway. forecasting government rev¬ the enues Minister assumed for a 1959 Gross National of billion or 7% the 1958 level. Moreover, it about above $34j/2 assumed was Product that this carried out last year. event, pressure of Federal financing on our bond market should be considerably reduced $400 million to cover net require¬ for non - budgetary pur¬ free men and women." our T. of course, much lighter are, those than Responsible Freedom Fleming Mrs. requirements (excluding Treasury find Mr. & increase would be in "real" terms, not in¬ flated dollars. Should the pace of any be relieved bond market even more. social security benefits. they as may Desirable be, we all know that they tend to be tied up with litical promises po¬ to the familiar "pie attract votes, in' the sky" tech- nique. established they become permanent built-in features of the While governments and munici¬ palities provide essential services of various kinds let's not forget the terrific importance of corpo¬ rate financing. After all, corpo¬ rations play the key role in pro¬ viding jobs to produce goods and services; corporate activity and profits account for the giant share of government tax revenues. So it is absolutely necessary to en¬ sure an adequate supply of capital for corporate purposes. The cost of these benefits readily become a vicious expanding with each new round of election promises. Aside from the staggering financial burden, growing "cradle to the grave" protection would surely power. could spiral weaken the ent public as borrowing is and Insofar government spending concerned, we would naturally is like to as reductions see wherever penditure, job to do. we Canada's credit pact status be can in money is to be restored. The Investment Dealers' ciation's Member firms have staffs of around 8,600 in riding—let him have views in the clearest, strong¬ and own our We do can friends to they in turn to and and ask our wives do the same; can urge likewise. of Cochran,Murray £ Co. LIMITED To mind, my proper way benefits Member this is to handle of this kind. ' In their friends our us also nities to bring the have Government Big seriously the over government in our The British should be channelled. people, after long experience with its Capital Issues Committee, sus¬ pended virtually all control over domestic borrowing in February At this time the re¬ publication the "Econo¬ of this year. nowned commented: • "So after two decades the heavy hand of Capital Issues is lifted from the joicing. The control haphazard, and Committee British There is every omy. was therefore In quote this a connection, let from sentence "In future fectively, Members or to of and personal incomes at all levels should Cochran. Murray £ •' : ' . _ LIMITED Hay citizens realize pockets. \ Exchange Rene T. Leclerc, Incorporee real¬ Investment Dealers just how far this country has gone in social and welfare plan¬ ning since the end of the War. In the past fiscal year Federal schemes of unemployment insur¬ The Investment Dealers' Association Sometimes I wonder if Member of the Canadian Stock that social security benefits can be provided only if we are prepared to pay sufficient taxes from our own < make we * ize Toronto Stock Exchange Dominion Bank Hamilton Bldg., Toronto, Telephone EM. 3-9161 Kitchener London Member of , of Canada old age pensions and fam¬ ily allowance payments exceeded ance, $iy2 billion. This year Federalsprovincial hospital plans will claim further large disbursements from the public purse. Let us not fool ourselves about 132 St. just operate more ef¬ the extent that Exchange . on me the latest periods of inflation¬ it may be that finan¬ cial markets will Montreal Stock from the soundness of principle, the increased levy the ineffi¬ Bank of Canada report: RENE T. LECLERC CO al¬ econ¬ for re¬ irksome, cause cient." together Investment Dealers' Association of Canada can growing role society. We must be on guard against any tendency towards bureaucratic control of our industry in the capital markets—such as setting up new issue committees to decide how and where domestic capital business opportu¬ pertinent facts the only universal Aside im¬ job exert possible. For example, some of us may question why, in an expand¬ ing economy, the government puts $300 million in housing- loans. One of the most gratifying tax changes announced in the budget should place the Old Age Security Fund on a self-sustaining basis. the to grow will it ary pressure many Through mine, educational our Growing mist" com¬ talk to the Member of Parliament est tenhs. public clubs and the point persuasive power on government thinking. On first thought, matters of this kind may seem far removed from underwriting and distributing se¬ curities; but on second thought, are they not at the core of the economic system underlying the very existence of our business, and, even more important, our whole way of life. v Asso¬ offices stretching from the Atlan¬ tic to the Pacific. Each one can our of where of only one way—by rigidly containing government ex¬ penditures, thereby curbing the inflationary potential implied in bank borrowing. In other words, deficit financing must be stopped if public confidence in the value our efforts concerned have an educational The plain fact is that maintained in the The I. D. A. should be dealing with social security mounting government ex¬ bined of clients, our self-reliant, independ¬ Participation qf attention business connections. hard-working character¬ Political-Educational and the your istics of the Canadian people. In Insofar to through multiply Once government spending pattern, no matter what political party is in thereby afford more scope provincial, municipal and cor¬ porate /borrowers. would Because of Sons, Vancouver; Dick Broad, The Western City Mrs. Geoffrey Wootten, Western City Company, Vancouver & and , the Mr. for economic recovery generate a still concerned, holdings of govern¬ larger Gross National Product, the ment bonds outside the banking budgetary deficit could turn out system have steadily increased to be much lower than the $393 from a low point of slightly under million forecast and net borrow¬ $8 billion last September to $91/2 ing requirements well below the billion at the time of the budget. $850 million, less, of course, the A sizable part of this increase CNR's and Bills. represents larger holdings of cor¬ porations in short-term issues Sees Reduced Bond Market held for the most part as tempo¬ Pressures rary liquid reserves pending ac¬ It, therefore, seems wise for us tive use of the funds for business to anticipate new money require¬ expansion. In today's much ments for the balance of the cur¬ brighter economic picture we rent fiscal year of $700 million, could reasonably expect to see less the step-up in the present some decline in these holdings as Treasury Bill tenders. With a the money is put to work in plant, successful Canada Savings cam¬ equipment and inventory. More¬ paign this Fall, the bond market over, individuals are not likely to would need to absorb less than increase their holdings until their one-half the new borrowing ab¬ confidence in sound money has sorbed in the past fiscal year. As" been firmly re-established. I inferred before, if economic im¬ Paying for Social Benefits provement exceeds budget expec¬ tations Thursday, July 2, 1959 Pilkington, James Richardson & ,Company, Ltd., Vancouver; Conversion the 3 page Canadian Investment Outlook cially, Mr. Matthew & Company, Ltd., Toronto; R. W. E. Dilworth, Clarkson, Gordon Mr. & Mrs. D. R. C. Harvey, Daly, Harvey & Cooper, Toronto - Bills) as FINANCIAL CHRONICLE James Street, West, Montreal Convention Number Mr. & Mrs. John THE COMMERCIAL and FINANCIAL CHRONICLE decisions are regarded as unacceptable governments may play a more active role in influ¬ encing the allocation of credit and social capital requirements for our resources." portant role to play in market You will agree that measures in this direction industry our that would would impose on form of regulation a for unthinkable be a peacetime economy. They would not only sap the vitality cf our industry but would greatly retard economic development this in country. government dictation, by nature, not lean towards very accommodating Federal and other The banks, trust and insurance companies have an^extremely im¬ cial life. thus and requirements leave in area tion would vate investment is tivating whole be Such absurd, force the in capital a D. total new dom," the country's process. of Canada's capital spending. Assuring Canada's of Growth an Despite Can¬ under-developed country in¬ sofar as natural the Borden in in the west GARLILE BURNS, B. G. Report is LIMITED Limited Vancouver Over 29 Years in Western Canada BROAD, R. J. Western City Company Limited MEMBERS Vancouver THE INVESTMENT DEALERS ASSOC. kind one or another. we on thinking, Calgary G. E. Leslie & Co. in resources are con¬ many areas scarcely scratched our productive have we the surface of potential. Vast savings must be mobilized for the sound development sources, of Leading Exchanges Edmonton — — Vancouver — Victoria Casgrain & Company Limited Montreal CASSELS, con¬ DAVID K. Cochran, Murray & Co. Limited Toronto CAYLEY, HUGH* Charles Wills, Bickle & Company,— H. & Burgess Co Limited Toronto and It is my ethics and public that conviction that Wood, Gundy & Company Limited our in¬ dustry is eminently well qualified make its to take own CIIADSEY, P. J * respect. responsibility make. for That the is mean by "responsible freedom." I these Individually let us firmly "responsible herent re¬ past not to mention the huge ure, and collectively, resolve freedom" strength pf achievements, our to — SINCE ALAN Members Calvin Bullock Ltd. Investment CLARKE, D.* 255 Bay Toronto Stock Dealers' St., Toronto Exchange Assn. of Canada • EMpire 4-8471 Fry & Company Limited Toronto in¬ industry's present 1909 Regina CHIPPINDALE, protect the INVESTMENT SECURITIES — James Richardson & Sons deci¬ what we - CHESNEY, C. M.* decisions and to sions DEALERS IN Toronto Montreal cerned; All To CASGRAIN, R. B.* so¬ information sound Wires CARYER, A. BRUCE ership of high quality, judgment clear Private Offices: must demonstrate lead¬ based Direct Calgary adapt¬ ing our industry to changing ditions Limited free¬ our In ' OF CANADA Nesbitt, Thomson and Co. Montreal rapidly changing basic fibre of CALDER, N. R.* , "responsible McCarthy & Nesbitt, Thomson & Co. gov¬ ' a where command ada's high standard of living, ours is for your investments ___ opportunity and responsibil¬ ity for our industry. the ciety, is threatened by ideologies The future should hold tremen¬ dous to point. live main the 70% We world, formation than on in case situa¬ private investment has accounted more submission since pri¬ Over the past decade, for instance, for A.'s first, mo¬ 9 Convention effectively. all-important uncertain position? page Armour, Brawley, Cathers & Co., Toronto; Mr. & Mrs. B. C. Scott, Dominion Securities Corpn. Ltd., Toronto group secondary and a secu¬ , Surely we are who should take the lead in assisting and advising the government on any matter that affects the capital market; the a private finan¬ our write and distribute suitable rities ernment the from Mrs. Douglas In Attendance at the investment But it is the dealers who are primarily re¬ sponsible for raising long-term capital for our country's devel¬ opment. We are the only people with the necessary experience, facilities and knowledge to under¬ I. governmental Continued & growing population. the Would its Mr. Samis, Samis & Co., Ltd., Vancouver; Mr. & Mrs. J. F. Plewinan, Gairdner, Son & Co., Toronto 23 Branch—Brantford, Ontario CLARKE, WARRING* McDermid, Miller & McDermid stat¬ Ltd. and future development. Vancouver COLVEY, D* Canadian Dow Jones Ltd. / Montreal CORNELL, F. M.* Cornell, Macgillivray Limited Halifax Harris & Partners Limited Brawley, Cathers & Co. Members CRUMP, N. R. 55 Yonge Street 507 Canadian Pacific Railway Place d'Armes Company , Montreal Toronto Investment Dealers' Association of Canada Toronto Stock Exchange Montreal DALY, R. A., JR.* R. A. Daly & Company Limited Toronto Investment Securities DANIELS, R. A.* Walwyn, Stodgell & Co. Limited CANADIAN Windsor GOVERNMENT-MUNICIPAL-CORPORATION DAVIDSON, MISS JESSIE Financial Counsel SECURITIES Toronto DEACON, DONALD M.* Deacon Findley Coyne Limited Toronto Affiliate ' " ■ . (l DEANS, D. T,* Bankers Harris & Partners Inc. Bond CANADIAN Corporation BANK Limited OF EMPIRE COMMERCE 3-5821 Toronto ' 15 Broad Street, New Yorl * Denotes • Mr. and Mrs. Continued on page 24 TORONTO BUILDING THE COMMERCIAL and FINANCIAL CHRONICLE 24 Mr. & 'Mrs. Thomas E. Rogers, R. J. H. Mr. & Mrs. Ernie Drake, C. A. Bird M. Daly & Co., Ltd., Toronto; Mr. & Company, Ltd., Vancouver Oliver Gairdner, Co., Ltd., & Son & Co., Mr. Vancouver; Ltd. & & Herbert Mrs. Mrs. Dick Malkin, Canada has much ties. We shall be George Murdoch, Belanger, Inc., Montreal; Toronto; from page Jules P. Mr. & Dubuc, Mrs. Frank Belanger, 23 McDonald, Inc., glad to send industrial preferred and you a lit Attendance at Convention DIETRICH, W. M.* selected list of bonds, * .' Members Limited FULTON, MRS. W. Osier, Hammond H. Investment Nanton L. Dealers' Association Toronto FERGUSSON, NEIL C. Clarkson, Gordon & Co. & Calgary GASSARD, Calgary DILWORTH, R. W. E. • Royal Securities Corporation Ltd. Montreal G. Tower Fergusson & Co. GENDRON, Dealers' Association ESTABLISHED 607 St. Toronto COMPANY, Inc. Investment James Street of JEAN*; La Canada Private Wire Bienvenu Maison Limitee Montreal 1922 West, Montreal Corporation Bond Limited DRAKE, E. C.* C. M. Oliver & Company GOSNEY, B. S.* Western City Company Limited Kitchener Vancouver Limited Vancouver between Montreal, Toronto DUBUC, JULES P. Belanger Inc. FOUNDED 1885 Montreal DUNCAN, JACK* McDermid, Miller & McDermid Ltd. BROKERS Vancouver DUNCAN, T. A. W.* Annett & Company Limited Toronto Credit Anglo-Francais Credit Anglo-Francais > Ltee DUNLOP, W. Limited STOCK BROKERS Members Members Investment Dealers' Ass'n Montreal Stock Exchange of Canada Canadian Stock Exchange • : & Company Limited Toronto THOMSON & MHCINNON ELLWOOD, W. J. H.* Burns & Bros. Denton Limited 2 Montreal ELY, E. H.* Wood, Gundy & Company Limited 60 St. James St. West — MONTREAL — Tel.: AV. 8-2172 Toronto Branehes CHICAGO 42 • ERTL,E. C.* Quebec—Trois-Rivieres—-Victoriaville—Sherbrooke—Chicoutimi and commodities in the United States and Canada EDWARDS, J. C.* Matthews listed, unlisted securities • Winnipeg INVESTMENT DEALERS in S.* Oldfield, Kirby & Gardner Inc. Denotes INDIANAPOLIS TORONTO offices in the United States and Canada MEMBERS NEW YORK STOCK EXCHANGE AND OTHER PRINCIPAL Montreal * Broadway, New York 4 , The Financial Times Mr. and Mrs.. - Quebec City FLEMING? P. A.* Bankers ^ J. T. Gendron Inc. DLOUHY, DOMINIK* UNiversity 6-2463 Direct Limited '' Toronto 8 Ltd., Limited FARNSWORTH, HERBERT* Nesbitt, Thomson and Co. gas * E^UIRIES INVITED KIPPEN Co., Vancouver stocks; also Canadian pipe lines, oil and mining issues. & Powell River Company IN CANADA common Gairdner, Son Montreal FOLEY, H. S. offer in the field of investment securi¬ to . McBain, Dominion Securities Corpn. Ltd., Victoria; Mr. & Mrs. Thomas Staples, Ross, Knowles & Co., Brantford; Mr. & Mrs. James D. Munro, Yorkshire Securities, Ltd., Victoria Vancouver Continued INVESTMENT Alex Woolrich, Thursday, July 2, 1959 V £ SECURITY AND COMMODITY EXCHANGES £ Number Convention THE COMMERCIAL and FINANCIAL CHRONICLE t K * • ' ' . 25 •>■' iliiiiliiilMi |v? Mr. & Mrs. W. M. Tafts, Dawson Hannaford Ltd., Toronto; Mr. Gairdner, Son & Co., Ltd., Winnipeg & Mrs. R. L. A Jim Sinclair, MacKnight, James Richardson & Sons, Winnipeg; Mr. & Mrs. W. J. Piper, A. E. Ames & Co., Montreal KINGSMILL, J. A. In Attendance at Convention GOUINLOCK, R. W., HEBB, R. JR.* Ltd. Toronto Toronto W, C. C.* Pitfield & W. Investment Dealers' Digest Limited Pitfield Vancouver MARCUSSON, P. A. Company, C. & Company, Limited • McBRIDE, C. W * Midland Securities Corpn. New York . Montreal Toronto F. A. E. Ames & Co. E.* Hagar Investments Royal Securities Corporation Vancouver HUYCKE, Harris & Partners Limited Bache Toronto & E. & ■ ^ , LAMB, J. G.* DOUGLAS W. page Pitfield & 1902 Company, Montreal Stock Exchange Canadian Stock Exchange LANGILL, D. J.* W. C. Pitfield & The Investment Dealers* Association of Canada Company, ' Limited Montreal Winnipeg HARVEY, D. R. C* LEBLOND, ROGER* L. B. Beaubien & Co. Limited JOHNSTON, K. M.* Wood; Gundy & Company Toronto on Members: S.* Limited Credit Interprovincial Limitee Daly, Harvey & Cooper C. K. Edmonton JOHNSON, G. G.* Toronto Established Vancouver Toronto Counsel Continued McDougall & Christmas Ltd. ■ A. E. Ames & Co. Limited Co. Dominion Securities Corpn. Ltd. HARTNEY, J. J. Vancouver Toronto „ JAFFRAY, T. P. N.* Winnipeg Ltd. Railway Company Limited LANGFELDT, McLeod, Young, Weir & Company Ltd. Financial ; Toronto HARRISON, T. J.* McDermid, Miller & McDermid Charles H. Burgess & Company Brink, Hudson & Lefever Ltd. Vancouver B.* Canadian E. Pacific LAILEY, C. P.* HUDSON, WALTER S. Limited — G. McDERMID, DON* Toronto Toronto DEREK Dawson, Hannaford W. Matthews Ltd. - HANNAFORD, LACE, F. D.* Equitable Securities Canada Securities Limited Dominion Securities Corpn. Ltd. Victoria Company Winnipeg Toronto HOVEY, W. N.* HALL, JOHN Montreal Investment Dealers' Association Montreal Vancouver MAYNE, KORZENIOWSKI, MRS. LILY Ltd. Hall Securities Limited HARRIS, Limited Edmonton Limited Toronto McBAIN, A. L. McLeod, Young, Weir & Company Ltd. Calgary Osier, Hammond & Nanton HILL, J. EDGAR* HALL, CARL* Toronto KNOWLER, L. J.* Winnipeg Ltd. Company Inc., Limited MAWER, C. N.* Herrndorf Securities Ltd. Victoria Anderson & Company Montreal HERRNDORF, H. H.* DENIS* HAGAR, Kippen & Calgary Greenshields & Co Inc Montreal BRUCE KIPPEN, W. Limited ; MASON, B. H. HERMAN, H. G.* GRIFFIN, Hall Fry & Company Limited KINNEAR, E. F. C.* Dominion Securities Corpn. Ltd. Halifax Bell, Gouinlock & Company, McAVITY, J. M.* MANFORD, W. A.* Investment Dealers' Association 520 St. Francois Xavier Street Montreal Limited HASSEN, H. Calgary Osier, Hammond & Nanton -Canadian Pacific HEAVER, -W. E. Company Nesbitt, Thomson and Co. — Regina Railway — LOCKE, BRIAN • Locke, Gray & Company Montreal Denotes KANIA, J. E.* Mr. and Mrs. Branch: 14 Metcalfe Street, OTTAWA, Ont. Calgary Limited Regina Telephone Victor 5-3261 Limited JOLICQEUR, PAUL Vancouver * Montreal LITTLE, A. T.* F.* Pemberton Securities Limited MACDONALD, J. E.* Pemberton Securities Limited Pemberton Vancouver Vancouver Securities Limited Telephone CEntral 2-7321 MACKEE, J. L.* Nesbitt, Thomson and Co. ' Limited Vancouver MacKEEN, H. D. Toole, Peet Investments, @ Limited Calgary J. MACKENZIE, Greenshields Annett & Company Limited P. Oswald & Drinkwater S.* Co Inc Members Montreal MacKENZIE, Member W. S.* Nesbitt, Thomson and Company, Ltd. The Investment Dealers' Association of Canada . Security Underwriters & Stock and Bond Dealers Canadian Stock Exchange Hamilton The Toronto Stock MacKNIGHT, J. A. James Richardson Montreal Stock Exchange & Exchange Sons ... ^ jnnjpeg >—r - The Investment Dealers' Association of Canada" MADDIN, C. A.* Annett Partners Limited ♦ Dominion Securities Corpn. Ltd. Vancouver Member Toronto Stock MALKIN, H. R.* Exchange Gairdner, Son & Company — Limited Vancouver 220 Bay Street « Toronto, Canada Telephone EMpire 3-7361 233 Notre Dame Street West, Montreal ; Victor 5-6101 MALLON, F. P.* McLeod, Young, Weir & Company Ltd, Toronto A V- 26 THE 26 Mr. & COMMERCIAL and FINANCIAL Mr. J. Edgar Hill, Royal Securities Corporation, Montreal; Mr. & Mrs. W. S. Mackenzie, Thomson and Company, Ltd., Hamilton; A. Bruce Caryer, G. E. Leslie & Co., Montreal Mrs. Nesbitt, Continued jrom MONTAGU, 25 page Mrs. Gordon R. E. 1 donald j.* Co. Limited Victoria Winnipeg Mcdonald, f. j.* Toronto McKAY, RAYMOND W.* W.*> T. Limited Calgary McKINNON, J. C.* Denotes Vancouver 7' Chronicle ~ Company LIMITED & Limited Co. Dealers' Association (Alberta) OSBURN, 36 TORONTO James Street South, HAMILTON J. SPEAR, R. James W. Richardson & Pitfield & SPRAGGE, Company, __ Limited Samis & Sons — A. E. —— W. JP.* Ames & Co. Limited Toronto STAPLES, T.* c.* Ross, Knowles & Co. Ltd. Company Ltd. Brantford c.* R. D. Steers and & Company Ltd. Ottawa JVancouver Company Ltd. STEPHENS, NIGEL* H. B. Housser & Co. Burns Bros." & Denton Limited Toronto ~ Toronto STEWART, G. C.* SCHULTZ, J. D.* S. G.* Whittall SCOTT, B. C.* Limited Vancouver PEQUEGNAT, J. Ltd. Toronto Toronto PATERSON, HUGH B.* R. Royal Securities Corporation Dominion Securities Corpn. Ltd. Inc. Quebec City Norman J. SCHULER, V. F.* G.* A. Gendron T. C. Samis Limited Pemberton Securities Limited PARENT, King Street West, Weir & --——— STEERS, REGINALD D. Vancouver 66 Montreal Winnipeg SAMIS, Powell River Company SECURITIES R.* Vancouver Vancouver INVESTMENT -Vancouver SAMIS, B. Securities J. Equitable Securities Canada Calgary Montreal NEWTON, D. C. O'BRIEN, G. W.* of Canada McCarthy Ltd. Ltd. W. Calgary , Exchange SURGEY, J. D. Dominion Securities Corpn. Ltd. Barclay & Crawford Toronto Toronto L.* A.* Cochran, Murray & Co. Limited Toronto PERCIVAL, E. G.* Merrill MORGAN & CO. LTD. members: MONTREAL STOCK & Lynch, Pierce, Fenner Smith, Incorporated Toronto Canadian Securities PILKINGTON, T. E.* James EXCHANGE Richardson & Sons Vancouver CANADIAN STOCK EXCHANGE Enquiries invited regarding Canadian PIPER, W. J.* A. E. Ames & Co. Limited Montreal / Government, Municipal and Corporation Bonds Preferred and Common Stocks PLEWMAN, J. F.* GairdpeL-, Son & Company Limited Toronto PLUMPTON, K. E.* MORGAN, OSTIGUY & HUDON LTD. members: INVESTMENT DEALERS' ASSOCIATION Nesbitt, Thomson and Co. Limited bankers Bond corporation Montreal OF CANADA POPE, E. . R.* Toronto POUTNEY, PLACE MONTREAL, D'ARMES CANADA F. B.* E. W.* Wood, Gundy & Company Limited Toronto Established 1912 44 King Street West, Toronto Houston, Willoughby & Co. Ltd. Regina PYATT, Limited Business Ross, Knowles & Co. Ltd. 507 Limited K.* & SOUTH, York Young, Company Ltd. Ltd. Members: SNELL, A. Carlile RUTHERFORD, A. M.* Dominion Investments Kelowna Daly & Company Limited McLeod, Ames E. BRUCE* Okanagan RUSSELL, K. G.* . York New Molson Securities Limited Investment SMITH, J. ROGERS, THOMAS E.* New Winnipeg Stock Winnipeg Ltd. . NEWMAN,- ROSS* Montreal Bullock Commercial & Financial A. - Dominion Securities Corpn. Ltd. Edmonton MURRAY, J. R.* A. F. Francis SMITH, DONALD G.* Dow, Jones & Co. Inc. Pemberton Securities Limited Mr. and Mrs. Limited Winnipeg ROSE, FRANK MURPHY, HAL MITCHELL, D. W.* W.* Gairdner, Son & Company Toronto Belanger Inc. L. Toronto New York R. A. Montreal Toronto Company Limited Vancouver * Limited Securities Governor SINCLAIR, R. L.* Montreal MURDOCH, GEORGE E. Mills, Spence & Co. Limited McNEIL, FRED D.* JAMES Victoria MILNER, A. J.* Mills, Spence & Co. Limited MUNRO, FRED the Ross, Knowles & Co. Ltd. ROBSON, F. W.* Calvin Yorkshire Vancouver SCOTT, .: RODOMAR, DOUGLASS V. Toronto Osier, Hammond & Nanton Read Bros. & Co. Limited Sons Winnipeg Sinclair, Edmonton A. Incorporated Limited MEREDITH, Powell River T.* to Robert Mrs. Lieutenant JAMES McLeod, Young, Weir R. & MAJOR A.D.C. Calgary Findley Coyne Limited Toronto r Ltd., Toronto; Mr. Ltd., Winnipeg Co., ROBINSON, C. S.* Wood, Gundy & Company Lethbridge Co., C. S. Robinson Investments Ltd. MORGAN, Ltd. Limited V Halifax Deacon Ringland, Meredith & Company Gairdner, Son & Company Company MOORIIOUSE, JOHN C.* MEREDITH, ROY F. & SCOTT, James Richardson & Securities .Ltd. E. Ames & A. Limited & Son Collier, Norris & Quinlan Ltd. RICHARDSON, MOORE, W. R.* MEARNS, H. G. Osier, Hammond & Nanton Son Montreal Edmonton Eastern Mcdonald, Cairdncr, QUINLAN, j. j. (Alberta) Ltd. In Attendance at Convention Watt, Thursday, July 2, 1959 Gairdner, Securities Dominion & CHRONICLE kitchener — london hamilton Members of The Investment Dealers' Association of Canada The Toronto Stock Exchange ' Mr. & Mrs. THE COMMERCIAL and Number Convention K. E. Plumpton, Nesbitt, Armstrong, Nesbitt, Mr. & Mrs. Douglas Thomson and Company, Ltd., Montreal; Mr. Thomson and Company, Ltd., London, Ont. Annett & Co., Ltd., Toronto; J. T. Gendron, Inc., Quebec Annett, Mr. & & Mrs. D. B. FINANCIAL Mr. . & 27 CHRONICLE Mrs. George Stewart, Royal Securities Corporation, Toronto; Mr. & Mrs. Don Merrill Lynch, Pierce, Fenner & Smith, Incorporated, Toronto Mrs. Jean Gendron, Mr. & Mrs. F. E. Griffin, Greenshields & Co, Inc, Montreal ■ ■ THOMSON, J. E.* G. S.* SWINDELL, Limited Limited SYDIE, J. E.* TINGLEY, - Limited Edmonton & Carlile W. & James Merrill & Post Richardson & TURNEY, Sons iBros. A. II.* C. S. Robinson Investments Ltd. Limited Est. 1910 Limited Toronto Government, WELCH, A. G.* Calgary Winnipeg Eastern Securities Company Wood, Gundy & Company WALKER, R. H. & Denton Limited Pierce, Fenner Lynch, Smith, Incorporated WEIR, J. G.* Locke, Gray & Co. Limited Calgary THOMPSON, DICK " , Toronto Toronto R.* Securities Limited Vancouver : WEBB, D. I.* Financial W. Hall & McCarthy Ltd. Toronto TOUCHE, RODNEY Calgary Burns Calgary Limited R.* McCarthy Ltd. Calgary TAYLOR, Carlisle Co Inc Toronto TAPRELL, Toronto WYMAN, ALBERT* Gairdner, Son & Company Greenshields Toronto . Mills, Spence & Co. Limited WRIGHT, J. R.* WATT, G. C.* TREBELL, F. D.* Hannaford Limited Dawson, Sons Saskatoon Montreal TAFTS, W. M.* _ James Richardson & W.* H. Y Vancouver WALTON, J. A. Wood, Gundy & Company Sydie, Sutherland Ltd. City Company Limited Toronto Edmonton Winnipeg The Western Investment Dealers' Association Wood, Gundy & Company Wood, Gundy & Company ' ■ WRIGHT, R. K.* WOOTTEN, G. E.* WALKER, W. S. Webb, Municipal and Corporation Securities Wood, Gundy & Company Limited Toronto MEMBERS WEST, J. J.* THE Wood, Gundy & Company Limited Vancouver ^ Over Fifty years of specialized financial service V OP ASSOCIATION OP CANADA : ." >'•' Offices': Saint John, N.B. (Head Office) Moncton, N.B. E.* LESLIE DEALERS' 1 , WHITE, INVESTMENT Charlottetown, P.E.I. Halifax, N.S. Fredericton, N.B. Sydney, N.S. Summerslde, P.E.I. Dartmouth, N.S. Osier, Hammond & Nanton Limited to Winnipeg Canadian brokers, banks and institutions WHITE, ROBERT Bongard & Company Toronto Branch Offices located at WILLIAMS, y LOUIS B.* H Hagar Investments Ltd. 303 Dominion Bank Bldg. 360 St. James St. West TORONTO MONTREAL H Victoria WILLIAMS, C. M. | V. B.* Oliver & Limited Connected and by Branches private at wires' with Boston, Mass., our JHain Office Washington, D. C., v III Vancouver WILLIAMSON, A. H.* Bloomfield, N. J., Princeton, N. J., and Oil City, Pa. Wood, Gundy & Company Limited f X I I ANDERSON & COMPANY WILSON, J.* Ames & Co. Limited Toronto ff H A. L. Anderson A. L. Howard f! B. H. Mason l§ M. D. Saunders WILSON, ROGER* Laidlaw & Co. Goodwin. Harris " & Company * 1842 N i, J BROAD STREET, NEW YORK 4, U. S. A. A. E. Ames & * Members WOOD, J. D.* 25 M. D. Cox IT Limited Toronto Established LIMITED TORONTO M Vancouver A. E. A % i Company Co. Limited —Toronto i % THE INVESTMENT % i DEALERS' ASSOCIATION OF CANADA '/■■///a Members New York Stock Exchange and other leading Exchanges WOOLRICH, HERBERT* H. J. Bird & Company & m % ■Y, Toronto 'r aSteS M <w 'Yj/ Ltd. / EM. 3-8103 iYrfoni UN. 1-0111 Vancouver * Denotes Mr. and Mrs. 7, '/"A/rMWt/,,*/', (MMAfity' m&&in*77, ' ' »•
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