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In 2 Sections
ESTABLISHED 1S39
—
Section 2
TAe Commercial w
Chronicle
Financial
Reg. U. S. Pat. Office
Convention
New York
Number
Price 40
7, N. Y., Thursday, June 28, 1956
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THE COMMERCIAL and FINANCIAL
2
CHRONICLE
Thursday, June 28, 1956
,71
INVESTMENT DEALERS' ASSOCIATION
OF CANADA
OFFICERS 1956
PRESIDENT
Nigel H. Gunn
W. Rees
F. H. Russell
Nesbitt, Thomson
and Company,
Limited, Vancouver
Toronto
1957
VICE-PRESIDENT
VICE-PRESIDENT
VICE-PRESIDENT
Bell, Gouinlock, &
Company, Limited,
-
Carlile
Taprell
&
McCarthy,
Ltd., Calgary
Charles McKelvie
James
Richardson
Sons,
&
Winnipeg
SECRETARYVICE-PRESIDENT
Robert K. Wright
VICE-PRESIDENT
G. A. Ross
VICE-PRESIDENT
Harold S. Griffin
J. A. Kingsmill
Wood, Gundy &
Company Limited,
Investment Dealers'
Collier, Norris &
Quinlan, Ltd.,
Mills, Spence & Co.
Limited, Toronto
Montreal
TREASURER
Association,
Toronto
Halifax
HONORARY
HONORARY
PRESIDENT
HONORARY
VICE-PRESIDENT
TREASURER
Wilfrid J. Borrie
E.F.Clarke Kinnear
Pemberton Securities
W. C. Pitfield &
Peter Kilburn
Greenshields
&
Inc, Montreal
Co
Limited,
Vancouver
Company Ltd.
Montreal
ran
sv
,v^
,-^v
E.
Convention Number
THE
I
:
.
COMMERCIAL and FINANCIAL CHRONICLE
,
•
.
_■
.
.
3
.
Significant. Canadian Economic Developments
In
reporting
ments
shall
the
on
develop¬
By J. R. HUGHES*
the past 12 months I
confine my remarks to a
over
more
cant
in
economy
tant
tions
for
economic
impor¬
implica¬
all
omy.
or
inclined
of possible temporary
ou
rselves
amateur
omists
that
remarks
d
in
tary controls
pre¬
found
I
may
not be
of
very
can
some
to investment and
tivity
*An
in
the
address
40th
Annual
ment
Dealers'
latter
by
Mr.
half
of
Hughes
Convention
Association
the
at
the
Invest¬
of
the
of
Canada, St.
Andrews By-the-Sea, N. B., June 14, 1956.
in the last half of the year carried
our
product to $26.6 billion
gross
and by
the end of the
running at
an
year
it
was
annual rate of $27.4
trades
Canadian share ownership in
have
free enterprise
a
were
set out in the
preamble
"Whereas
tablish
regulate
in
mone¬
the
best
nomic
life
trol and
it
is
desirable to
central
a
to
credit
and
interests
of
of
currency
the
nation, to con¬
protect the external value
of the national
monetary unit and
mitigate by its influence fluc¬
tuations
in
the
general
level
the
economic and financial
fare of the Dominion."
the
greater
dependence
suggests that
money
we
markets
can
in
expect
the
Continued
on
page
CANADA
quite
naturally produced some signs of
The more
notable examples of these are the
increase
marked
and
the
credit.
in
increasing
The
our
imports
demand
for
upward movement of
our
wholesale
the
past
year,
price
index
over
while of modest
proportions, provides further evi¬
Incorporated 1932
CANADIAN STOCK SPECIALISTS
Calvin
Bullock, Ltd.
507 Place D'Armes
Montreal
Orders
Executed
Commission
all Canadian
on
Rates
or
Exchanges at Regular
Traded in New York in
FIRST
United States Funds
IN THE UNITED STATES
CHARLES KING & CO.
MEMBERS
Montreal Stock
Toronto
Canadian
61
Exchange
Exchange
American Stock Exchange
Stock
Broadway
NEW
455
YORK
WHitehall 4-8974
Craig St. W.
Stock
Exchange
Royal Bank Bldg.
MONTREAL
TORONTO
UNiversity 1-5886
Incorporated 1952
EMpire 4-6407
Calvin Bullock, Ltd.
One Wall Street
Direct Wire Connections
-
TORONTO, NEW YORK, MONTREAL
New York
our
future
«
economy.
upon
interplay of economic forces
The vigorous revival has
our
wel¬
Money Market Sensitivity
The
FIRST
IN
of
production, trade, prices and em¬
ployment, generally to promote
exceptions of companies manu¬
facturing automobiles and farm
strain in
eco¬
the
and
equipment.
es¬
bank in Canada
continued to
for the majority of
manufacturing industries produc¬
tion and shipments for the first
half of this year have been well
ahead of 1955, with the notable
a
the
to
grow
eco¬
on
of the Bank of Canada Act ofl934:
Briefly reviewing the de¬ billion, establishing a new record. dence that strains are beginning
upon which I hold rather definite
velopments, conditions began to With final product prices in 1955 to appear. These visible signs of
views. However, in deference to
improve only in April, yet by relatively stable, the increase in strain have been undoubtedly the
you and to our distinguished guest
mid-year prosperity was again gross national product reflected principal factors that have brought
speakers, from whom I know you quite generally in evidence and almost entirely an expansion in about the shift in
policy on the
are most anxious to
hear, I have by late November our monetary the volume of production.
part of our monetary authorities
placed a self-imposed 15 minute authorities had turned to a
policy
from one of "easy money" to one
Vigorous Recovery and Some
limit upon my remarks.
of considerable tightness from a
of considerable "tightness."
Strains
In the
industry in which we are policy of definite monetary ease,
The greater reliance now being
Since the turn of the year the
which had been encouraged
in
engaged, the level of general busi¬
ness
activity is always a matter 1954 and the early months of 1955. business scene in Canada has pre¬ placed upon monetary controls in
of the greatest importance.
Few, I think that perhaps even the sented a picture of an almost fully the more important countries of
if any, lines of industry are as Minister of Finance, Mr. Harris, employed economy making stren¬
the Western world, than was in
sensitive as ours to the changes was surprised at the extent of the uous efforts to expand its output.
in the tempo of activity.
Indica¬ upswing in the last half of the Activity in the major industries
tive of this, the securities markets year.
I trust that the Minister of forestry and mining has been
have
long been considered as will not feel that I am in any way well ahead of that a year ago. The
service
step
the
countries
price
bank
econ¬
year.
barometers, providing those skilled attempting to question his ability
interpreting their movements in the realm of forecasting if I
with some insight into the nature refer to the estimates of gross na¬
of things to come.
tional product which he gave us
at our last annual meeting. As I
At the time of our last annual
recall it, he suggested that our
meeting it was reasonably certain
gross
national product in 1955
that, following a year and a half
might reach $25 % billion and that
of moderate recession, the trend
by the end of the year it might be
was again
definitely upward. We running at an annual rate of about
met
in
an
atmosphere of opti¬
$26 billion.
Many, at the time,
mism, yet I venture to say there
considered he was extremely op¬
were
few among us who really
timistic, but events proved his
anticipated the full extent of the
estimates were on the conserva¬
astonishingly rapid and strong re¬
Actually, the upsurge
covery in Canadian business ac¬ tive side.
those
of credit.
However,
longer range point of
view the cost of money is deter¬
mined by the broader forces of
supply and demand. The position
and responsibilities of a central
vitally important savings flow.
in
important
enterprise basis.
and
help contain the business cycle; and (4) inflation stops the
somewhat difficult to restrain my¬
self
from
elaborating at much
of
from
entirely fulfilled
fully employed
fully supported by Canadian willingness
it
greater length upon certain issues
estimates
foreign wholly-owned Canadian subsidiaries; (3) soundly administered
I
confess
must
capital requirements which
work; (2) it would be preferable to have
econ¬
a n
1956-1957
strains accompanying current almost
some
and
re-establishing
economy a central bank, may, and
often does, influence the supply
Believes: (1) predictions that the 20th Century would belong to Canada
will be fulfilled if
consider
to
John R. Hughes
warns
are
more
less
because of
the
future. We
growth interruptions, and reports
substantial near-term
the immediate post¬
must be considered a
Operating in
tremely bright Canadian investment outlook,
that
free
an ex¬
o u r
have
my
Looking forward to the future with confidence, Mr. Hughes predicts
signifi¬
develop¬
ments
paring
nomics
the
of
some
years,
towards
been
have
of
case
further
President, Investment Dealers' Association of Canada
brief summary of what I consider
to
the
war
Royal Securities Corporation Limited
to
29
4
THE
The Atomic
The
be
can
of
subject
atomic
of
in
approached
ture
Canadian atomic head reports
will
new
possibili¬
ties
which
relationship
for
extending
further
k
n ow
For
ledge.
of
future
nuclear
is at too early
development
a
power,
costs
forecasts based
upon
of conventional
the
for
production of
as
as
going
a
process
power
heating and
be
if
solved
atomic
calculate
which this
to
is
do
give
will
the
pends
on
and sometimes conflict-
range
of
its
to
you
about
made
contribution
of
from
predictions
ing
The economist
kind
power
help
numerous
the
you
which
evaluate
which
nuclear
implications for
being
are
and
power
our
economy,
will
make to rising energy demands in
particular countries and in the
world
at
large.
The statesman
basic facts about nuclear energy,
will be conscious at all times that
When
atomic
in
peace
a
war
and,
energy source
is both
energy
of
ment
new
and
a
.
has
nuclear station de-
a
the solution of a wide
technical problems,
These problems
the
under
Let
with
start
us
one
two
or
be grouped
heading
of
may
general
capital costs.
The jsreat advantage of nuclear power as compared
Fuel and Capital Costs Compared with conventional
is
the
low
in 100-m
fuel
thermal power
cost.
Fuel
costs
e g a w a 11
reactor, large amounts of
in the form of heat are
produced. A ton of natural ura-
conventional
this continent
now average from 3 to 4 mills per
kilowatt
hour.
Using
present
technology, it should be possible
nium
instru-
guarantee of
such,
as
an
growth has
about
to achieve
nuclear
fission
takes
place
a
energy
become
dominant factor in international
relations.
has
billion
heat
a
potential
kilowatt
hours
of
20
which
—
thermal stations
than
2.5
on
fuel cost of not more
per kilowatt hour
a
mills
5V2 %
the past 25 yeaifs.
of
rate
of
the
in
in
increase
Gross
National
If it is assumed that the
the
value
in
rate
of
the
of
the
popula¬
increase
Gross
in
National
Product will continue at the pres¬
ent rates of 2%
and 4V2%
re¬
spectively,
if
and
that
the
it
past
is
also
as¬
relationship
between
_
of
we
relationship between
power
demand and
a
the
and
sumed
My remarks today will be concerned mainly with the first use.
The production of economic
stage in
a
information
background
source
the
is at too early
program
its development. What I shall try
energy
of electric energy.
will
basis
these factors and
demand
re-
economic
an
of
increase
of
the
produced in Canada.
fields. The engineer, whether he be engaged in
design or fabrication, will be concerned with the problems which
must
and
tion
after the 1962 government contract termination date; and
concern
power
rate
of
value
rate
(4) will permit uranium production to attain the highest dollar value of metals
search in many
is to become
rate
Product.
space
the
possible to establish
period
the
the
applied
also
on
such basic factors in the economy
as the rate of increase in
popula¬
and other assumptions, indicate
heat; (3) requires continuing the uranium industry
reaction, and the
most useful tool for
is
the
(1) will be in modest supply until 1970 when it should become
energy:
the
the
that
chemist has found in radioisotopes
a
that
at
rates.
project the fu¬
For example,
per annum over
It
prospectus,
a
requirements,
power
control led
thermo-nuclear
program
increasingly important; (2) offers interesting possibilities for
possibility Of a
Bennett
J.
know
power
tion
nuclear
of
speculating
to
able to predict that nuclear
the
already
are
are now
and, though the
costs of generating
sources,
example,
physicists
the
"we
supply the data required in
stage to
atomic energy
boundaries
to
growth rate
been
and will be used"
can
with the many
presents
is
past experience.
intrigued
be
growth
power
One method
President, Atomic Energy of Canada, Ltd.
The
scientist
'7
Wm.
forecasting
J. BENNETT*
selected
one's viewpoint.
on
By W.
number
approach
The
ways.
depends
Thursday, June 28, 1956
Energy Program in Canada
energy
a
FINANCIAL CHRONICLE
COMMERCIAL and
will
power
likewise
range
from $500 to $600 per kilo-
watt.
This cost must be reduced
continue,
it is possible to estimate a future
rate of power growth as high as
something like $250 per kiloif the advantage of lower
7%.
A second method is to forecast
to
,
.
.
watt,
fuel
costs in
a
nuclear station is
not to be lost by reason of higher
capital charges.
Before
I tell .you
what
are
we
doing to achieve this goal, let us
ask ourselves whether the effort
it
(and
is
other
way,
expensive
an
worthwhile.
is
one)
Or, to put it
there a need
in Canada?
is
an-
for
future
of
the
some
The
role
of
the
one,
future
requirements
particular
industries,
of
and
allowance must be made for
is
possibility that the pattern of
industrial development may
change. Such an analysis may in-
and this
dicate that the immediate rate of
forecaster
hazardous
a
by
the
Does Canada Need Nuclear
Power?
always
requirements
total consumption of electric energy in this country. In using this
method, account must be taken
these
nuclear power
power
analyzing the requirements of
particular industries, since we
know that two or three industries
now account for over half of the
that
assume
this
is roughly equivalent to the heat
potential of 2,600,000 tons of coal,
The present known reserves of
economically recoverable uranium
have an energy content many
times that of the known reserves
of oil, gas and coal. While, as I
shall point out later, we cannot
hope to utilize all of this energy
content, we are confident that we
can achieve a degree of utilization which will make atomic
while
sharing in some degree all
viewpoints, has a special
interest in the opportunities for
of these
investment
may
which
provide.
atomic
energy
While I shall have
that interest very much in mind
my
in
description of the Canadian
in atomic energy, I should
program
make it clear at the outset of my
remarks
ble
to
that
it is
provide
formation
quite impossi-
the
which
an
kind
of
in-
investment
generation of nuclear
mum cost at whlch 11 Wlli be pos~ kilowatts, as compared to the
sible to generate nuclear power.
Continued on page 10
There are severa' methods of
ergy a
house
We
normally requires for a
prospectus,
simply because the
♦An address
tal cost of conventional thermal
stations of 100 megawatt capacity
ranges from $120 to $160 per kilowatt. The capital cost of the first
hydro or fossil fuels, which will
likewise confident that
this heat can be used to produce
audience,
in a 100-megawatt nuclear station is especially so when he speaks to growth will be as high as 7% per
operating at a load factor of 70%. an audience which can claim
w
iho
r_fp
With improvements in technology special competence in the busi- annum DUl mai xne growin rare
—and it is reasonable to expect ness of forecasting. A forecast may
level off at
somewhere
such improvements — this cost as to the future role of nuclear around 6% per annum. I have
might be reduced to as low as pne power must be predicated, first, selected a growth rate of 6% for
mill per kilowatt hour. On the on an acceptable estimate of the
nprinri
nf fbp
npvt
9^
other hand, the capital cost of future power growth rate in 1
penua oi ine nex to yw
because I believe this is a con¬
nuclear stations will be higher Canada' second on the conventhan the capital cost of conven'Zulcl, either servative estimate. On this basis,
tional thermal stations. The capi- *
power resources, either we will have a total installed
steam
I
to
By-the-Sea, N. B., June 15, 1956.
drive
plant.
for space
Andrews
process
en-
of heat,
It
in
turbine
a
or
a
also be used
can
heating
for producing
vparq
tions—that
will
come
next
heat.
.
BONDS
source
are
power
by Mr. Bennett before the
large
very
_nnilm
two
power
sta-
is, the stations which
into operation over the
or
three
years
—
be available to, meet the
mand'
'
and
.
third
on
' whinL
new
the
will
de-
mini-
hp
nn„
capacity
kilowatts
capacity
in
1965
and
in
a
1980
of
28
total
of
67
million
installed
million
will
v
STOCKS
CANADilN
<*
Markets
maintained in all classes of Canadian external
and internal bond issues.
Stock orders executed
Exchanges,
or
the Montreal and Toronto Stock
on
net New York
DIRECT
PRIVATE
WINNIPEG,
WIRES
CALGARY,
BELL
SYSTEM
markets quoted
TO
TORONTO,
VANCOUVER,
TELETYPE
NY
on
request.
MONTREAL,
AND
VICTORIA
1-702-3
Dominion Securities Grporatiqzt
Boston
Associate Member American Stock
Exchange
Toronto
Philadelphia
40
EXCHANGE
Telephone WHitehall
London, Eng.
Calgary
Ottawa
PLACE, NEW YORK
5
Montreal
4-8161
Winnipeg
Canadian
Affiliate
—-
and Canadian
Member
Stock
Toronto, Montreal
Exchanges
SUN LIFE ASSURANCE COMPANY OF CANADA
WORLD-WIDE
Vancouver
Halifax
100
OFFICES
SERVICE
THROUGHOUT
INCLUDING
NORTH
AMERICA
Convention Number
THE
COMMERCIAL and FINANCIAL CHRONICLE
5
Central and Investment
Banking in Canada
During the past two
have
been
siderable
both
years there
developments
of
central
By J. E. COYNE*
con¬
interest in the fields
Governor of the Bank
of
in
developments
physical
con¬
tinued
a
Points
pro¬
gan
21
ago
with
the
central
a
bank
d
in
Can-
and
a,
which
Coyne
has
forward
and
peace
Canada
in
in
w-ar,
this
over
to fulfill
come
an
in-
creasingly
the
important function in
financial
structure
of
our
economy.
That
structure
as
a
whole is in consequence
stronger,
better
integrated,
more
flexible
v^ue to .^e nati°n
through the assistance it provides
to economic
growth and development, to the increasing maturity
and
diversity of our economic life.
By way of background to some
further
comments
banking
should
in the
past
in
on
Canada
like
to
refer
investment
today,
I
to changes
monetary situation
and
year,
to
over
the
way
the
in
which the
monetary operations of
the central bank and the credit-
granting
tered
operations
banks
operations
in
of
interact
of
the
char-
with
investment
the
dealers
the
tion
distribution of re-distribu¬
of securities and other in¬
vestments.
and
said, inaccurately
misplaced
dramatic
with
emphasis, that monetary policy is
now
restrictive, where a year or
more
that
it
ago
expansive, and
been or is being
These phrases imply
credit
was
has
restricted.
that there is less
money available,
less credit
available, today
at
some
This
time
idea
is
in
the
than
recent
sometimes
past
coupled
,r;
♦An address
wjth
by Mr. Coyne at the 40th
By-the-Sea, N.
B.,
June
14,
1956.
the
statement, also inacthat the raising of tne
by the central j bank
was
intended
to
bring
about
monetary restriction and did so.
curate,
bank
rate
No
The
Restriction
Monetary
facts
the
that
are
total
(currency and bank
nas not been reduced,
money supply
deposits)
but has continued to grow, and
that credit has not been restricted
but has continued to expand. Bav-
ingS
jn
continuing to rise, both
deposits and in other
long-term investors have
are
bank
forms,
more
available
money
investment
this
year
for
than
new
ever
before; economic growth this
wiil be the
Bank
biggest in
loans
month
have
our
year
history,
increased
every
far
during the period of
so-called restriction, although it
seems
probable that the rise in
total
interest rates.
by
infla¬
Rise
This rise is caused
by the interaction of supply and
demand, not by the action of the
central
that
bank, except in the
the central
vent the
met.
the
the
bank
pre¬
rates
unlimited
an
sense
could
rise in interest
providing
in
secondary mortgage market be
Rate
of
supply. Normally
rising demand makes itself
through a rise in bank
so
bank
loans
will
slow
This is what has been happening in the credit field, both long
term and short term, in recent
months. On the supply side there
has
been
no
overall
reduction
but rather continued
growth. But
demand has grown even
more,
and the projects for which funds
to
give
such
the
to
way
an
excessive
demand
financial
loans
for
fall
ex-
does
not deal with the
resources
lar
or
persons
particuenterprises or re-
gions.
required have given every
Limiting the rate of financial
indication of being more, in total, expansion
under
such
circumthan the physical potential of the stances does not limit or
attempt
economy. This has been true both to limit the total amount of
physCanada
America
as
to the full extent of the
demand
at tne pre-existing level of interest rates, would in such circum-
stances be clearly inflationary,
is
the
it
duty of central banks not
simply
seeks
to
that
ensure
°f
encourage futile efforts to
ceed
what
is
possible
in
physical
sense.
demand
bank
for
will
money,
usually
some securities and so add
fi-
go
on
It
the
Too much money
One
tion
effect of the normal
of
central
a
in
crease
the maximum sustain-
the
bank
to
demand for
Continued
on
reac-
an
tors
page 17
increasing.
to
is
always possible, indeed it
normal, for bankers and inves¬
take
time to
loans
ticular,
different
time of
and
views
various
investments.
kinds
In
"We like
from
with
of
par¬
a
disappointed,
some
"On-the-spot" information
financing will
they
of credit-worthiness adopted
in
on
business opportunities in the
have to be postponed, some loans
will fail to meet the higher Stand-
by lenders
doing business
the Royal"
time
when the de¬
mand for money,
the desire to
borrow money, exceeds the sup¬
ply that may prudently be made
available, it is inevitable that
some potential borrowers will be
at
serve
areas
is available through
the 781 Canadian Branches of the
such circumstances.
to
American businessmen who want
data concerning economic and
other conditions in all parts of this
Dominick Corporation
of
fast-growing country.
Canada
360 ST. JAMES STREET WEST.
The
Royal offers these services:
•
Credit reports
•
MONTREAL
Sales representation
plateau 8153
•
Information
raw
on
•
Factory sites
labor,
power,
materials and transportation
anywhere in Canada
Write Business
at Head
Development Department,
Office in Montreal.
THE
Underwriters & Distributors
Over 850 Branches in
Canada, Cuba,
the
of Government
&
Corporate Securities
Bahamas, British West Indies, Central
South America, New
ROYAL BANK
and
York, London and Paris.
OF CANADA
rftHenica,
IK
TOTAL
EXCEED
ASSETS
New York
$31/4 BILLION
Agency—
68 William
Street, New York 5, N. Y.
Chicagd CorrespondentNorman C.
in-
money
down
is
a
buy
some-
what to the money supply, but
n°t at a fixed level of interest
rates or of security prices,
ex-
chasing the available production
of goods and services will not help
to achieve
rising
central
nancial expansion does not exceed
or
a
as
°f securities in the market by the
central bank. In fact, at a time
itself, and of North ical expansion, whatever amount
a
whole, and indeed may be physically possible, but
the greater part of the world,
To permit the supply of money
to become excessive, to expand
of
and
ties at existing levels. Banks too
have to sell securities to accommodate the increase in loans,
unless the central bank increases
their cash reserves, which would
be a consequence of the purchase
allocation
to
are
of
deposits,
sellers seeking to raise cash exceed those wishing to buy securi-
I am speaking of overall
monetary policy as such
of financial
bank
the I
prices of securities
.
pansion.
totals,
and
in
Royal. This familiarity with
specific territories is available
Tel.:
by
increase
money
before very long; some categories
of loans may decline while others
otZrl Association ol cLA^Sr'Tndrews
residential
evils
money, any rapid increase in the
total demand, will cause a rise in
deposits and loans and in¬
government securities
of
hamper
may
known
It is sometime
and
principally by banks reducing
Interest
interest rate rise.
cause
but
Except at a time of marked un¬
deremployment of the economy as
a
whole, any strong demand for
possible in the
ever
certainly the investment.banking
pusiness has acquired increased
lmportance
met
was
beengoing
since, both in
not
what is
$925 million; praises investment dealers for their help in
accommodating the
huge distribution adjustment, and for encouraging, mobilizing and
directing
savings flow, and suggests challenge of improved short-term money market
establishment
of
to
that the $950 million difference between
vestments
years
and that central bank action did
sense,
out
which be¬
cess
a
history," that financial expansion has been held
our
physical growth
growth, in adition to bring¬
will be the biggest in
year
the
These
have
Governor Coyne states "economic growth this
case,
relationship
of
economy,
ing all the other
tion in its train.
In explaining the extent to which the
opposite to monetary restrictionism is the
the
between
two.
rate
the
such
banking,
and
period, has
able
Canada, Ottawa
banking and invest¬
ment
E.
of
Allingham, 231 So. La Salle Street
THE COMMERCIAL and
6
Canadian Oil
Long-Range Planning for
trade
we
equivalent
in
retail gasoline
to produce the
have
President, Shell Oil Company
amount of petroleum
itself one of the
oil well, in
an
t
t
a n
t i o
of
the
in
mining-engi¬
neering
field.
Then
must
it
be
transported
by
pipeline,
barge or ship,
and
remem-
that
ber
30%
alone
the
w o r
V.
1 d's
dustry is rep¬
by
Asa
resented
Next
tankers.
is
of
in¬
shipping
W. M.
in
ships
terms of
the refining
process—a
chemi¬
operation bigger in itself than
usually think of as the
chemical industry.
Then trans¬
cal
what you
portation comes in again by ship,
pipeline, rail car or truck — and
figure for yourself how many of
for
an
in
Canadian
planning will be my major theme.
Ash before the
85th
Annual
General
Meeting
of
the
Canadian Manufacturers Association, To¬
*An
ronto,
address
by
Ont., June
7,
a
a
•
plausible view but I think it is
small
one.
It is the first point
which I would like
in this talk at
Mr.
1956.
to
—-
stress
bigness
in planning.
believe the oil industry
I
today has
•
■
faster
creased
of energy
in
1920
year.
have to
in
1920
and
mass
•
Dealer
3%
from
share
has
to
of
level
its
The
production
oil
in
products
big
a
today's
the century.
feature of the oil indus¬
capacity,
its
two
likely to be ohly small
present
to
liberation and prodence.
economic
the growth in the real
wealth per capita. Canadian experience in common with general
Turning to Canada our
progress is
shows
experience
of
standard
greater
of
per
that
a
higher
involves
living
a
consumption
capita
energy.
Canada Needs More Energy
The fulfillment of
Canada's great
potential depends on a
by
Future economic prog¬
ress
will
relatively
small
international
which
has
group
of
minimum that
production of all
specifically
to
32%
between
1946
require growing energy
large supplies.
companies, each of
its
own
integrated
lating
sources.
a
required to maintain each phase
°f its business. While most of
1954.
established
as
exists.
and
count in
supplies are a
which really
operations in every main phase of
the oil business. Many factors re¬
Assuming
great system of coordina¬
This smooth func-
no
tion
increased
forces
terms of world oil
the free world's
State, Municipal and Revenue
Yet
flourishing energy industry. The
demand for energy in Canada has
in relation to that of the
Government and its Instrumentalities
tonnage,
tanker
pipeline building and distribution
closely in step.
facilities all keep
try that while there are numerous
the
decades is
| Securities of the United States
always
available
required.
The
oil production, re¬
small and medium-sized concerns,
main future source of energy,
?/
the
where
of crude
economic
It is
Coal is losing
although
nuclear
is undoubtedly the world's
next
are
and
when
flow
Bigness Growth
Inevitable
and
the
feature of
industry from the consumer's
price fluctuations, and petroleum
over
by the end of
ground
over
is
is
point of view is its smooth and
even pace.
There are no violent
energy
rily by petroleum.
contribution
industry
oil
characteristic
A
oil
Even a very rapid
production of nuclear power from
1975 onwards
such as would raise its contribution to total energy supplies to
one-third by 2000, would still im¬
ply the necessity under these as¬
sumptions for a fourfold increase
growth of energy requirements
expected over the next 20 years
or so will have to be met prima¬
power
The
means.
bigness
one.
present level.
raised
7%.
industries
certain
inevitable.
increase in the
Over the same period
hydro-electricity
effective
most
the
vided
For
companies feel the
about
less than
to
of mass production
distribution have pro¬
the technique
would
from
fallen
has
populations, and the de¬
living standards
be met. In meeting them
grow total rate of 3% a year after these
at a energy output by 2000 improve their position, they realurge
1975,
be almost four times the ize that they must plan with de-
-
Meanwhile the contribution
coal
Both the needs
mands for higher
if the world's procontinues to
century,
duction
from about one-seventh
more
than half last
half today.
Distributor
this
to
five-sixths
•
of rising
growing
inevitably
some
faster than others.
than
double oil production from last tioning and balance is possible
year's level of some 700 million because
each major company,
tons to reach 1,600 million tons mindful
of its own operations,
in 1975.
In the last quarter of works out very carefully what is
joint contribution to the total ef¬
fective consumption of all forms
of
Underwriter
tion,
to considerably more
essary
raising their
still,
ever
themselves grow in propor¬
must
commercial forms of energy together increases during the next
20 years at an year, it will be nec¬
average rate of 3%
(compound) a
industry made up
17,2
bigness
the
activities
fining
In
^
need
man
profits first and planning
of sev- passed the stage where it thinks
erah major industries long range of profits first and planning aftthe trucks you see on our high- planning is essential if ony to co- erwards. Of necessity it must lay
....
....
ways are oil transports.
Finally, ordinate its many components. its plans as a member of the na¬
our
gallon reaches you through More than that—the oil industry tional energy team, indeed a mem¬
this service station—the greatest is an essential factor in the na¬ ber of the world energy team.
single retail merchandising sys¬ tion's long range energy picture,
Energy Consumption Pace
tem in North America.
The oil actually the predominant factor.
I saw a provocative article re¬
Reflecting world-wide economic
industry in fact is several — at
least four—major industries rolled cently in which the author sug¬ advance, the free world's effective
into one.
gested the first job of any corn- consumption of energy has inI mention all this not to boast
pany was to make profits and that creased -"* 135% Dby
10 since 1920, and
'
of the size of our industry, but to only thereafter could it indulge since 1938 alone it has increased
lay a background of bigness in in long range planning. Leading by 80%. But the consumption of
terms of long range planning. The from strength as it were. This is petroleum and natural gas has in¬
a
expansion in hu¬
recorded, and
units which handle the work
sustained
most
where it thinks
afterwards, and analyzes the following principal
factors governing and requiring long range planning in economically and stra¬
tegically important oil: (1) world energy requirements are such that 700 mil¬
lion ton oil production of 1955 will have to more than double to 1,600 tons in
1975, and will, at this rate, increase four-fold at the end of the century; (2)
bigness in oil is inevitable; (3) Canadian reliance upon oil and natural gas pro¬
duction rose from 23% in 1946 to 42% in 1954, of total Canadian energy,
and increasing reliance on petroleum is certain in spite of known future atomic
developments; and (4) effect of monetary depreciation upon oil industry's
heavy capital requirements, which in the next decade is expected to add
$8 billion to new investment in today's dollars. Deplores efforts to prevent
foreign investments, free trade, and liberalized tax legislation.
opera-
n s
of Canada, Ltd.
industry has passed the stage
Shell Oil President believes oil
impor-
more
companies in many other indus¬
tries.
It
is
indeed
a
notable
achievement of our age.
We are
in the midst of the greatest and
By W. M. V. ASH*
increase our
To
Thursday, June 28, 1956
FINANCIAL CHRONICLE
most
Petroleum is easily the
important form of Canadian
energy
gas
total
in
supply.
Oil
and
natural
of
1954 counted for 42%
Canadian
energy
as
com¬
have pared with 23% in 1946 allowing
oil
made this development inevitable;
but bigness is a feature also of
Continued
on
page
21
Securities
Bonds, Preferred and Common Stocks
of
Industrial, Public Utility and
Railroad
Corporations
Bank and Insurance
Midland Securities
Company Stocks
corpn. limited
Bankers' Acceptances
Canadian Government
Securities of the International Bank for
Reconstruction and
Development
members:
The Investment Dealers'Association
of Canada
Municipal
Canadian Bonds
and
Corporation Securities
Foreign Dollar Bonds
The Midland Company
LIMITED
Stock orders executed
on
'The
member:
The Toronto Stock Exchange
all Exchanges
Toronto, Ontario: 50 King
FIRST BOSTON
Street West
London, Ontario: Huron &
CORPORATION
Sault Ste. Marie,
Erie Building
Ontario: 116 March Street
Montreal, P. Q.: 215 St. James St. W.
New York
Boston
Philadelphia
Pittsburgh
Cleveland
St. Thomas:
Chicago
San Francisco
Private wires to Eastman,
354 Talbot St.
Dillon & Co., New York and MacDougall &
MacDougall, Montreal
Convention Number
TOE COMMERCIAL and FINANCIAL CHRONICLE
7
Canadian Telecommunications Today, Tomorrow
I
to
keenly
am
address
grateful
me
in
me
you.
if
of the honor
aware
have paid
you
you
asking
And I would
would
By T. W. EADIE*
me
be
Canadian telephone industry spokesman projects
this
and
as
—
a
several
hats.
views the scope and
First, I am
speaking per¬
sonally — on
my
half.
ects
Secondly,
for
The
growth of "the
by the end of 1958;
W.
Thomas
one
is this
it
third
There
are
phones
over
4,000,000
Canada
in
by
character you chiefly wish to hear
systems.
and
Hundreds
from.
tele¬
they
are
small
2,800
some
of
separate
these are
My reminiscences-y-entitled
perhaps Telephone Customers I
cooperatives,
owned
by
farmers or municipalities. Among
Have
the larger
or
Thirty Years in
Darkest Telephonia—do not seem
wholly appropriate.
And I
continually made aware that
company
am
my
organizations
shareholder-owned
is just
segment
a
yourselves
all
Canada makes
over
desirable
Let
here
a
national
the
from
more
wide
might
add, the most telephoneminded country in the world. We
Canadians
make
considerably
more
telephone calls per person
than any other people. Is the cli¬
mate responsible for this?
Or are
unusually
have
sociable?
Or
do
high national per¬
centage of teenagers? Or are we
just plain talkative folk?
I must
we
confess
exact
a
very
that
reason.
I
I
don't
can
know
the
only present
the facts to you and leave you to
draw your own conclusions.
♦An address
by Mr. Eadie
Annual
Convention
of
Dealers'
Association
of
drews
By-the-Sea, N. B.,
the
at
of
the 40th
Canada, St. An¬
June 15, 1956.
to the 29%
rise in popula¬
tion and the 38% rise in tne vol¬
of
ume
We
national
gross
during the
same
therefore in
are
product
period.
a
period of
high-gear
ment
The
of
of
best
industry
barometers
handle
the
vast
of
Development
telephone
the
to
nation¬
is
of
vigorous productivity if
plant investment is to justify
very
our
Barometer
needed
service.
good,
telecommunications
itself
one
devel¬
economically.
So
far
cerned,
as
local
we
automatic
on
long
of
continent-
a
First, here is the microwave
relay picture. The members
vof
the
Trans
System
research and
switching
traffic
radio
oper¬
radio
to
Canada
building
Telephone
microwave
relay network from Sydney
are
Vancouver.
a
Part
it
of
is
op¬
ex¬
erating
now,
and
it
will
be
completed by stages. The entire
prac¬
network is scheduled to be in op¬
eration by the end of 1958.
The
telephone
vast
radio
microwave
wide scale.
Trans
Canada
Telephone System,
probably aware, is an
of
the
seven
major
Canadian telephone organizations
as
you
are
is
has
not
expansion
con¬
in¬
or lo¬
volved any great novelty of either
prosperity of a city, the method or machinery. We have
growth of its industry and settle¬ added many million dollars' worth
ment are reflected, usually mag¬ of dial
switching equipment, we
nified, in the demand for telephone have built hundreds of new ex¬
The
service.
into
The extension of
remote
areas
often by radio—is an
successful
service
nowadays
—
indication of
changes, and put into operation
tremendous
cable.
mileage
of
wire
a
and
Extended Area Service has
Through been developed to provide the
the increase in long distance call¬ most suitable
pattern of service
ing you can measure the expan¬ for neighboring communities and
sion
of
pioneering.
tr^de.
In the ten years
since the end of the Second World
the
War
national
total
of
tele¬
average
of
calls, both local and long distance,
have
a
all
than
more
measure
of the
doubled.
As
special intensity
for
metropolitan
service. Canadians
making nearly V2 formed to develop long distance
calls every service on a national basis. Each
day, more than twice as many as member is responsible for the
ten years ago. There may be little construction and maintenance of
slackening in this rate of growth installations in its own territory.
in the decade immediately ahead. At present a microwave system
distance
long
presently
are
million
long distance
and
Good
distance operates in our Bell of Canada
to territory between
Toronto, Ot¬
development,
and tawa, Montreal and Quebec City
rapid
communications
the
national
long
are
essential
they have been a priority charge
for the telephone industry.
Microwave
Transmission
There
two
are
aspects
—
to
all
trans¬
areas.
All
and switching.
That is,
carrying your call with clarity,
and delivering it to the correct
distant
each
telephone.
direction
must
Progress
be
in
carefully
related.
Masterly
automatic
switching is of little value if the
long distance lines are always
busy or the conversations Oover
them
are
incoherent.
Radio chan¬
nels
capable
of
simultaneously
carrying hundreds of conversa¬
tions
will
do
little
good
few months to Win¬
a
nipeg.
It will form an integral
part of the national network. And
this network will also carry tele¬
vision
programs
across
Canada,
and
Continent-Wide Switching
telephone development
and in but
serving in all
some
Canadian
28
cities.
Those
mission
service
opment—whether national
cal.
phones and the daily
Investment
re¬
than
more
telephone traffic have had to be
bought at high cost-levels, and
they must be maintained in a state
presentation.
then begin by sketching
—in broad outlines—the scope and
we
goal
common
me
organization of the telephone in¬
dustry in Canada, which is, I
of
development,
which
my own, and systems con¬ presents the industry with many
trolled by provincial governments challenges to its ingenuity
and
as in the case of the three Prairie
energy.
The quantities of equip¬
—
assembled
growth, I would
those increases
100%
both
are
companies,
enterprise, national — provinces. Yet we form a closely
in its implica¬ integrated
network, and we work
tions. Also, the fact that you have in mutual assistance towards
a
continental
even
of telephone
late
like
vast
a
of
distance
re¬
technology efforts which include the transistor and the Bell solar battery.
operated
own
So
association
assume
of
Mr. Eadie
(2) continent-wide automatic switching of long
pure
tical
Eadie
switched
are
relay system and the organization
telephone-minded country in the
most
carry
efficiently.
now
coast-to-coast
why
sees no reason
sources.
change; (3) Mid-Canada early warning line; and (4)
pointed I must admit, for the Ca¬
nadian telephone industry.
Known
and
distance traffic, making Canada and the United States
Company of
Canada.
And,
thirdly, as a
spokesman, a
trifle self-ap¬
would
next 25 years
(1) coast-to-coast microwave traffic relay system, scheduled for
as:
ation
Bell
Telephone
I
estimated $3 billion plant
world," and, in illustrating the high-gear development, cites such major proj¬
be¬
own
equipment investment need in the
an
the major part should not be obtainable from Canadian
wearing
man
they
and
engaged on two major
projects — the construction of a
visualize
statement of
thanks
rapidly
are
while
—
making
the calls
President, The Bell Telephone Company of Canada
the
are
transmission fa¬
cilities
we
are
developing for
long-haul telephone traffic. What
are our plans for switching?
The
ultimate aim might be described
as
the transformation of the whole
of
Canada
into
and
the United
States
vast
telephone exchange.
There are, I might mention, about
60 million telephones now in serv¬
ice
one
in
the
recent
two
years
countries, and in
they have been in-
Continued
unless
on
page
this
has been—it is—a very large un¬
dertaking,
but
spectacular
For
our
an
especially
equivalent to the 3-D
technicolor
you
not
one.
rather
jobs
to
I
the
would
refer
expansion
of
The
Toronto
change lists
a
Stock
Ex¬
larger number
of industrial shares than
any
Where
in Canada
Gairdncr
320
%
Gompanij Limited
are
the most
other two stock
exchanges
in Canada.
Of the
over
$44,000,000,000
of listed shares
Bay Street, Toronto, Canada
manufacturing
more
$25,000,000,000
are
complete service for corporate
a
financing in Canada.
dealers
Private enquiries from
are
of
Every variety of
manufacturing companies.
in Canada's
is represented
in the 243
companies in this group.
Montreal Stock Exchange
A
Canadian Stock Exchange
Exchange
Winnipeg Stock Exchange
Vancouver Stock
company
rapidly expand¬
ing manufacturing industry
invited.
Members
The Toronto Stock
shares listed
and traded?
We provide
than
shares
our
Exchange
complimentary copy of
Monthly Bulletin show¬
ing essential trading data
on
all issues listed will be sent
to you
free
on
request.
The largest market for
Affiliate
industrial shares in Canada
Gairdner S
60 Wall
Gompanij Inc.
Street, New York 5, N. Y.
Member:
The Investment
Dealers'
Montreal
Kingston
Quebec
Association
Hamilton
Kitchener
London
of Canada
1
New York
Private wire system
Calgary
Edmonton
Vancouver
Winnipeg
26
THE
8
Thursday, June 28, 1956
COMMERCIAL and FINANCIAL CHRONICLE
GOULDING, E. D.
DUNLOP, W. S.
Oldfield, Kirby & Gardner Ltd.,
AITKIN, G. E.*
Brawley Cathers & Co., Toronto
Ltd.,
Midland Securities Corpn.
Sault Ste. Marie
BENDALL, A. J.
Canadian Alliance Corpn. Ltd.,
ALLAN, Mrs. BETTY
Vancouver
ALMOND,
Bank of
Association,
Montreal
Atomic Energy of
Rene-T. Leclerc Inc.,
Royal Securities Corpn. Ltd.,
Montreal
"Globe
Angus & Co., Toronto
Mail," Toronto
&
Pemberton
Gardiner, Annett Ltd., Toronto
Findley Coyne Limited,
Brawley, Cathers & Co., Toronto
& Co.,
Saint John
Gairdner & Co. Ltd.,
Quebec
Counsel, Montreal
Financial
BAKER, T. H.*
A. M. Kidder &
Toronto
Co., Montreal
CADMAN, J. L.*
James Richardson & Sons,
Toronto
Toronto
CAMPBELL*
?homas B. Read Company Ltd.,
Royal Securities Corpn. Ltd.,
St. Stephen
Vancouver
BARTRAM, R. C.*
CARYER, A. B.
G. E. Leslie & Co., Montreal
McCuaig Bros. & Co. Ltd.,
Montreal
&
L. G. Beaubien & Co.
Cochran, Murray & Co. Ltd.,
Ltd.,
Forget & Forget Ltd., Montreal
Jajpes Richardson & Sons,
Toronto
♦Denotes
CHIPPINDALE, ALAN
Mr.
&
Calvin Bullock Ltd.,
Mrs.
Montreal
HAYMAN, J. L.
Goulding, Rose & Co. Ltd.,
HEATH, S. B.
Walwyn, Fisher & Co., Toronto
HEBB, R. C.*
J.*
Nesbitt, Thomson and Co., Ltd.,
Ottawa
W.
FORRESTER,
Merrill
DEACON, J. S.*
Deacon
Findley Coyne Limited,
Post," Toronto
New
J.
York
Nesbitt, Thomson and Co., Ltd.,
Montreal
Nesbitt, Thomson and Co., Ltd.,
GASSARD, H. L.*
Investment Dealers' Association,
GIBSON, L. T.*
Harrison & Co.
Ltd., Toronto
nomic
you
McLeod, Young, Weir & Co.
Kippen & Co., Inc., Montreal
Findley Coyne Limited,
Steers and
Company,
GEORGE*
James Richardson & Sons,
HICKS, R. C.*
&
Company Ltd.,
Toronto
Wills, Bickle & Co., Toronto
Ottawa
HEYWOOD,
Harrison
GOODERHAM, P. S.
HILL,
W. F.*
Harrison
GOUINLOCK, R. W. Jr.
DUFOUR, R.
eco¬
HETHERINGTON, J. W.*
&
Company Ltd.,
Toronto
Nesbitt, Thomson and Co., Ltd.,
Bell, Gouinlock & Company,
Montreal
Ltd., Toronto
Continued
and trends. To receive copies
news
as
they
or
to 2 mum cmoim
Canadian
Bell, Gouinlock & Company,
Ltd., Montreal
Vancouver
GODWIN, C. E.*
DOWNES, W. L.*
Ltd., Montreal
ports and interprets for
HESLOP, L. R.
Deacon
DRURY, D. K.
re¬
Head Office, Montreal.
are
published, write
Bank
New York
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of
84 Wall Street
any
U.S. office
Montreal
San Francisco
- • -
333 California Street
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tPead
Office: THentnceU
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—
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—
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AND
of QUEBEC
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221
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Members:
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{
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Hyacinthe
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Trois-Rivieres
Brussels
Sherbrooke
Ltd.,
Toronto
Montreal
Monthly, the B of M's Business Review
Securities
Herrndorf
DOW, D. J.*
Canadian economy
Calgary
Winnipeg
Toronto
D.
Ltd.,
A. E. Ames & Co. Ltd.,
DLOUHY, D.
Montreal
Co.
HERRNDORF, ROBERT
GALE, J. R.*
Nesbitt, Thomson and Co., Ltd.,
Securities
HERMAN, H. G.
S.*
Young, Weir & Co.
Montreal
Ltd.,
HENRY, E. R*
Antigonish
FUGLESTAD, A.*
Burns Bros. & Denton Inc.,
Montreal
Dominion Securities Corpn.
Eastern
Toronto
BREYNE, B. E.
McLeod,
Lynch, Pierce, Fenner
New York
& Beane,
Fry & Company Limited,
L. S. Beaubien & Co. Ltd.,
DINNICK,
A.*
FRY, DAVID
DEACON, P. S.*
R.
Dominion Securities Corpn.
Ltd., Halifax
HENDERSON, J.*
Pictou
Ltd., Toronto
each month of the
.
Toronto
L.
FORBES,
DANIELS, S. M.
Eastern Securities Co. Ltd.,
de
CAZAVAN, H.*
BELL, L. L.*
Co., Montreal
"The Financial
Toronto
Montreal
Dominion Securities Corpn.
Ltd., Montreal
Flemming & Co., Toronto
^-Toronto
CASSELS, D. K.
BEAUBJEN, A. S.
HART, P. N.
Wood, Gundy & Co. Ltd.,
FLEMMING, PAUL R.
Gazette," Montreal
Graham
BARKER, A. J.
& Sons,
Kitchener
Saint John
DALY, II. J.*
Toronto
James Richardson
Limited,
FISHER, F. C.*
Eastern Securities Co. Ltd.,
Montreal
Mead & Co. Ltd.,
"The
Toronto
HARRIS, R. W.
Montreal
Limited,
CUNLIFFE, G. S.»
BARCLAY, J. M.*
Burns Bros. & Denton Ltd.,
Times," Montreal
FALKNER, D.
& Company
CUNDILL, J. P.*
BYERS, D. J.
Ross, Knowles & Co. Ltd.,
Bell, Gouinlock & Co.; Ltd.,
Toronto
CRYSDALE, PETER
Anderson
S. J *
BRETTTNGIIAM,
H.*
GUNN, N.
"Financial
O.
T.
Walwyn, Fisher & Co., Toronto
C.
E.
Harris & Partners
Canada, Ottawa
Bank of
McLeod, Young, Weir & Co.
GRILLS,
FRED
ERWOOD, D. L.*
Toronto
COYNE, J. E.
ARMSTRONG, D. W.*
Company Limited,
A. E. Ames & Co. Ltd.,
ERTL,
Vancouver
BRAY, G.*
GRILLS, R. M.
J. C*
&
Toronto
Toronto
Wood, Gundy & Co. Ltd.,
Ltd., Toronto
EMBURY,
COOPER, W. J.*
Deacon
Securities Ltd.,
Ltd.,
Toronto
Nesbitt, Thomson and Co. Ltd.,
BORRIE, W. J.
ARMOUR, A. D.*
Leslie
Matthews
COYNE, B. L.*
ANNETT, D. R.
E.
Montreal
1
Halifax
EDWARDS,
Ltd., Toronto
BLACKMORE, RALPH
ANGUS, EWART
Houston, Willoughby & Co.
Regina
CONNELL, IL B. M.
Greenshields & Co. Inc.,
GRIFFIN, H. S.*
EBBELS, W. D.
Equitable Securities Canada
BERTRAND, PAUL*
ANDREWS, IL*
G.
Canada Ltd.,
Montreal
Montreal
Montreal
York
Montreal
Ottawa
Co., New York
Dow Jones &
Telephone Co. of Canada,
Bell
E.
Canadian Dow Jones Ltd.,
Canada, Ottawa
BENNETT, WILLIAM J.
ANASTASIA, A. A.
ROBERT
CLARK,
GRAY, J. A.*
James Richardson & Sons,
GRIFFIN, F. E.*
EADIE, T. W.*
Ltd., Montreal
COLVEY, D.*
BENHAM, IL A.*
F.
L.
Investment Dealers'
Equitable Securities Canada
Ltd., Toronto
Dominion Securities Corpn.
Calvin Bullock Ltd., New
Montreal
Ltd., Toronto
DYMOND, A.*
CHURCH, J. A.*
BELSHAW, J. A. M.*
Goulding, Rose & Company
Winnipeg
In Attendance at LD.A.C. Convention
Canadian Stock Exchange
The Toronto Stock Exchange
on
page
30
'
J
*
Convention Number
THE
COMMERCIAL and FINANCIAL CHRONICLE
Keeping Canada's Air Transport in Forefront
From the
beginning, aviation and
Canadians have seemed meant for
other.
Canada's vast
dis¬
By J. E. NICKSON*
General
each
Sales Manager,
It
Trans-Canada Air
anticipates the elimination
gradually, I will admit — of the
standard piston-engine aircraft on
firstly, the long-haul or interna¬
Lines
tances demand the kind of trans¬
Commercial impact, economic growth
results, and coming
port that avia¬
tion supplies.
I believe that
i
a
Canadian aviation
transport
indispensa-
ble
this
to
country.
operation.
The
first and sali¬
ent
and
about
j.
e.
the
air
need it.
is
as
air
quick backward glance
at what has happened.
In 1945,
according to Canadian
aviation statistics, domestic and
international operations by Cana¬
dian and foreign carriers involved
the flying of 153 million
passenger
miles.
air rates to decline in
improvements will have
many
At the
time, accord¬
same
routes,
to put commercial-
of
Versus
Rail
In 1955, based on actual and es¬
timated figures for the first seven
months
air
that
of
carriers
miles—an
year,
flew
increase
the various
1,500,000,000
from
1945
of
880%. The railways provided 2,808,000,000 passenger miles—a de¬
crease
of
55%.
to
The
ment
I
National
the
350
railways
million
provided
billion
6
the
will
to
Increase by 38% to $36 billion in
the next 10 years and continue
to
upward
to
reach
$70
billion
in
figures
give you some
I have been asked to speak on
idea of the growth, since the end
the subject "Keeping Canada's Air
of the war, of civil aviation in
Transport in the Forefront."
I
Canada.
presume
this means forecasting
Now
looking to the future, future developments for civil air
what
that
do
we
see?
just about
It
our
seems
to
me
starting point
sion briefs
*An
address
by Mr. Nickson before
the
85th
Annual
General
Meeting:
of
Canadian Manufacturers'
Association, To¬
ronto,
June
8,
concerning the growth
of this country.
You will recol¬
lect
that
prognostications
have
been
1956.
in
made
that
the
transportation in Canada. In mak¬
ing forecasts, I find it at this time
extremely
yond
to
difficult to look be¬
10 years ahead, that is, up
1965.
In
our
company
we
actually planning operations,
been
the
MACH 8-5.
ordered,
are
or
I
population
why it is so difficult
beyond a period of 10
must
be
perfectly obvious
any who wish to consider
Basically, the problem is "What
the outlook beyond 10 years
for aircraft development," that is,
the means by which people and
goods
are
actually moved.
read
have
about
doubt
no
the
actual
around
During the past decade
a
miles
per
At the present time, the major
engined
aircraft, have these air¬
craft cruising in the neighborhood
of 300 to 330 miles
an
hour.
Entirely apart from the partic¬
ular airline problems of introduc¬
ing
a
a
completely
new
power
commercially,
other
new
aircraft with
system, the impact,
on
nations
the nation
of
we
or
recent
550
miles
an
hour,
is
very
Therefore,
we
feel
Continued
we
on
can
issues which have been placed in this
Among these issues have been:
Government
Province
Province
of
Province
securities of the
of
of
Canada
Province
of
Ontario
Province
of
Quebec
British Columbia
Province
of'Saskatchewan
Manitoba
City
of
of
Alberta
Edmonton
Province
CANADIAN GOVERNMENT
of
New Brunswick
City
of
Hamilton
Province
of
Nova Scotia
City
of
Montreal
City
Toronto
of
Vancouver
City
PROVINCES
of
City
of
Winnipeg
MUNICIPALITIES
and
CORPORATIONS
Harriman
Ripley & Co.
Incorporated
Underwriters and Distributors of Capital Issues
63 Wall
BOSTON
•
CLEVELAND
Street, New York 5, N. Y.
PHILADELPHIA
•
DETROIT
•
•
Smith, Barney & Co.
Members New York Stock
14 Wall
CHICAGO
READING
PHILADELPHIA
Albany
•
Exchange and other leading exchanges
Street, New York 5, N. Y.
•
Allentown
CHICAGO
•
-
Hartford
BOSTON
•
•
Minneapolis
look
page
organization underwrites,
distributes and deals in
ex¬
tensive.
have been instrumental in underwriting and
new
and
moving the
cruising speeds from, say, 300 to
heard
purchases
by many of the major airlines of
the world of jet aircraft. This is
a
most significant development.
major portion of the
hour
550.
country by the Government of Canada and its subdivisions.
Our
of
carriers of the world using multi¬
on
Jet Aircraft Age
You
in
be
this
question.
is
and
should
Canadian Securities
distributing
will
neighborhood
In other
words, their
cruising speed will be
nearing the speed of sound, MACH
reasons
talk
years
1980.
These
is to refer to the Gordon Comniis-
miles.
passenger
have
cruise
labor costs; and (5)
over
Product
know if many of you are
the.fact the aircraft
of
which
—
ing to Canadian railway statistics,
don't
age is a new develop¬
history of civil aviation.
maximum
Further, it is the prediction that
Gross
with
jet
in
aware
19,- should say, have planned opera¬
000,000 in the next 10 years, and tions through that year.
then continue to climb to
We are trying to work on a 1028,000,000 by 1980.
year basis, as a minimum. One of
the
operating
aircraft
with small jets.
possibilities.
will increase by 22%
Mileage
today
are
powered
aircraft, by
1,
Air
subsequently
the replacement of this type
some of the carriers
years
providing decreasing
years,
we
turbine
(2) little prospect for atomic
10
next
and
geared propellers, and it is possi¬
ble to foresee within the next 10
to be made to accommodate tomorrow's end¬
less air
people
transport
a
problem
seat or ton mile is not offset by expected rising
It exists because
As useful
looking into the future and
attempting to prognosticate what
might develop, I think we have
take
consumer
cost per
the public. It
does not exist
In
to
(4)
in¬
is today, we are
only on the first
page of the book of tomorrow's
endless possibilities.
a
(3) rapidly rising investment in planes of ad¬
vanced technological and design progress constitutes a
financing problem;
dispensable to
Nickson
'or itself.
it
Mr. Nickson observes: (1) it will be
routes,
shorter-haul routes.
With respect to the shorter-haul
civil aircraft in next 15 years;
transport sys¬
tem
today is
that
are
paying aircraft through sound barrier speeds;
over¬
whelming fact
scheduled
tional
the
depicted by Trans-Canada Sales Manager. Finds the
future exceedingly bright in Northern, Mainline and International
types of
r
is
developments in
—
23
&
THE
10
H.
William J. Bennett, O. B. E., President
Corporation Limited,
Coyne, Governor
Nigel H. Gunn, Bell, Gouinloch & Company, Limited, Toronto;
of Atomic Energy of Canada, Ltd., Toronto; John R. Hughes, Royal Securities
retiring President of Investment Dealers' Association of Canada; J. E.
Bank of Canada, Ottawa
Continued
Thursday, June 28, 1956
CHRONICLE
COMMERCIAL and FINANCIAL
H. Andrews,
from
page
Southern Ontario is
—and
4
them—will face
in
crease
Peter D. Curry & Co.
The Atomic Energy
In Canada
Ltd.
CURRY BUILDING
Program
million
is
this
to
power
come
from
from?
DEALERS IN
Future
INVESTMENT SECURITIES
substantial
A
are
part of it will
hydro sources which
located that they can de¬
from
come
★
Nuclear Power Forecasts
so
liver
to
power
existing
systems
at costs less than the cost of pro¬
PETER D. CURRY
•
ducing thermal power. However,
all of our hydro resources are not
in
this
category.
transmission
costs
In
some
will
cases
impose
a
prohibitive penalty.
A conserva¬
tive
that
estimate
shows
total installed
GRAIN
BONDS
STOCKS
kilowatts
hydro
WINNIPEG
STOCK
EXCHANGE
WINNIPEG
GRAIN
EXCHANGE
THE INVESTMENT
"Private
Wire
the
will
supplied
hydro stations and the balbe
lance, or 21 million kilowatts, will
be supplied by thermal stations.
The substantial increase in 1980 in
the
as
percentage of thermal power
related to the total installed
or
3 J/2
will
b^ supplied from
and
the
balance,
million kilowatts, will be
supplied by thermal stations.
DEALERS' ASSOCIATION OF CANADA
Of
source.
On the basis of
reactor technol¬
reasonable expectation
power can be gen¬
by 1965 at a cost of not
it is
ogy,
erated
than
more
cost
spective
have
not
indigenous
impose
a
fuel costs
penalty,
heavy
are
since
the major factor in
the total costs of power
in thermal stations.
generated
Such regions
producing power in
a con¬
station
using
ventional
coal
at
thermal
accept
target, the following esti¬
$8 per ton.
this cost
can
thermal
be
made
roles
If
we
to
as
the
ARE WELCOME
YOUR INQUIRIES
INDIVIDUAL 8
nuclear sta¬
stations and
tions in
meeting the requirements
for thermal power in 1965: of the
total installed thermal capacity of
3V2
million kilowatts, somewhere
between
200,000
kilowatts
and
400,000 kilowatts will be nuclear.
Beyond
1965
we
would
expect
GROUP
1
OR
•
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H
E
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Members of
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Winnipeg Stock Exchange
Exchange
Canadian Stock Exchange
Private wire connections
to
ASSURANCE
Calgary Stock Exchange
all principal markets.
HEAD
COMPANY
OFFICE —WINNIPEG.
CANADA
AT YOUR SERVICE:
1
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•
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Mortgage Correspondents in
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BUSINESS IN
Members of the Investment Dealers' Association of Canada
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Principal U. S. Cities
Regina
Saskatoon
Calgary
•
7
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Offices in Canada
Vancouver
rWWAWWWVWWW\AAAWWW\WWVAWWWVAWWWWVAW\A\VWW
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Strategically Located
BILLION
;
&
Winnipeg
United States
/
/ c/ruXccQ
Toronto
OVER $3
FORCE NOW
re¬
conventional
of
to All Principal Markets"
Connections
CALL
6-mill
This
mills.
6
roughly equivalent to the
is
type—that is, they will burn coal,
oil or natural gas. In those regions
do
a
nuclear
that
mate
which
present informa¬
tion about power
tions will be of the conventional
capacity of 28 mil-., supplies of fossil fuels, trans¬
241/2 million portation costs at some point may
stations
found.
cost of
economic
of
whether
to transmission ex¬
unless some alternative
of cheap energy can be
Nuclear power is such a
reflects the exhaustion
hydro sources.
In
those regions where cheap fossil
fuels are available, thermal sta¬
capacity
lion kilowatts in 1965,
of
Members
of
capacity of 67
kilowatts in 1980, 46 mil¬
kilowatts
lion
of
due
power
pense,
total installed
the
million
kilowatts.
Where
EDWARD E. GLASGOW
16
of
costs,
power
one
inevitable in¬
thermal power due to transporta¬
tion expense or high-cost hydro
source
capacity
installed
an
the choice lies between high-cost
WINNIPEG, MANITOBA
present
Mr. & Mrs.
Hughes,
Hills, Royal Securities Corporation, Limited, Halifax; Mrs. I. A. Martin, Montreal;
Royal Securities Corporation, Limited, Montreal; Mr. & Mrs. John R.
Royal Securities Corporation, Limited, Montreal
H.
Convention Number
Wilfrid
E.
THE
J. Borrie, Pemberton
Securities, Limited, Vancouver; Mrs. Frank Sherrin,
Vancouver; Robert
Clark, Calvin Bullock, Ltd., New Ycrk City; Frank
Sherrin, Pemberton Securities, Limited,
Vancouver; Mrs. B. Allan, Vancouver
some
reduction
costs
as
ments in
the
in
nuclear power
result
of
improve¬
yond
However,
for
the
I
purpose
of
that period the
increase sharply.
will
technology.
this forecast I have assumed a cost
of 6 mills,
although I think this
is a conservative estimate. Cn this
think
the
it
will be
of
accuracy
pends
on
our
ing economic
What
power
we
are
capacity in 1980, some¬
thing like 7 million kilowatts will
To
the
extent
that
nuclear ; power costs can be re¬
duced below 6 mills, the contribu¬
tion of nuclear power to the total
installed capacity in 1980 will be
greater. It may be of interest to
point out that in its submission
to
the
Gordon
Commission,
On¬
tario Hydro has forecast
a
installation
kilowatts
of
400,000
nuclear
in 1965 and between 6 million and
7% million kilowatts in 1980.
placed
This
evident
that
we
in
develop¬
We are
are
doing three things. First,
carrying on fundamental
research
to
must
maintain
Mrs. J. L.
Cadman, James Richardson & Sons, Toronto; J. H. Knowles,
Ross, Knowles & Co.,
Ltd., Toronto; J. T. Thompson, Molson Securities
Limited, Montreal; G. A. Ross,
Collier, Norris & Quinlan, Ltd., Montreal
research.
continue
He
must
provide
if
position.
our
The research scientist has
role.
in
come
is
an
essential
part of power reactor
development.
This can only be
and
is
components in the
NRX
re¬
actor.
Third, we are undertaking
design and feasibility studies with
supporting engineering develop¬
in
reactor
reactors
at
possible
ditions,
a
while
at Chalk
ties
not
found
very
sufficient scientific
in
fact
Although
data
now
are
the
the
will
should
NRX
re¬
reactor
elsewhere
in
the
free
world, and this will explain why
has been used so extensively
in
the
United
account for
this
over
10% of the
coun¬
try's total generating capacity. Be¬
as
one
have by
pushed
to
their
well
I
in
as
might
States
our
own
mention
a
and
velopment program,
is
de¬
Feasibility
Studies
and
feasibility studies,
with engineering development, are
if the results of research
necessary
and experiment are to be given a
useful
application.
another
way,
at
Or, to put it
some
Continued
dis¬
now
and
Design
on
stage
in
page
12
BELL, GOUINLOCK & COMPANY
LIMITED
ESTABLISHED
25 KING STREET
1920
.
WEST, TORONTO
UNDERWRITERS AND DISTRIBUTORS OF
program.
project
of
current interest.
The selection of
specific fuels for the large demon¬
science, it is simply be¬
the emphasis we have
CANADIAN GOVERNMENT, MUNICIPAL
stration power reactor known as
the PWR which is now
being built
of
Design
United
If Canada is regarded today
of the leading countries in
new
cause
knowledge
been
reactor
power
the
it
limit.
means
heavily involved in the
States
are
creasingly important and that by
1980 nuclear power plants would
scientific
no
is
testing.
Corporation,
'
type of work which
as
period
United
of
use
loop experiments.
and
of
After that
and
the
us
prevail
Kingdom atomic energy programs,
1970.
better facili¬
even
experiment
with
it
available to permit a
beginning in
the applied field, the boundaries
until
into operation late this
The General Electric
which
cussing
NRU reactor for
reactor.
con¬
would expect that the role of
nuclear power would become in¬
up
we
NRX
as
work
reactor, the NRU, which
will have
for
the
made
NRX
where
irradiation
I
ties
in
was
River provides facilities
this
are
as
which
reactor.
that the
you
for
separately, they
closely related.
like
River
stimulate
such
power
mind
I
to
temperature,
in
I should
ment for power reactors.
noint out at once that,
Chalk
year,
of
out
new
physics, chemistry,
biology, physical metallurgy, and
associated sciences.
Second, we
are
testing fuel systems, materials
done
carried
Our
testing of
components
experimental
result
will
also provide expert
advice in connection with current
reactor projects.
The
and
States
the
data
he must
materials
in the United
dual
a
the
the design of the future and
possibly the ideal power reactor,
have described these three activi¬
My forecast indicates that the
part played by nuclear energy in
supplying
Canada's
power
re¬
quirements will be a modest one
fundamental
on
are
&
for
reactors.
doing about this?
Fundamental Research
we
Mr.
emphasis
and
of thermal
nuclear.
percentage
the forecast de¬
success
basis, of the 21 million kilowatts
be
COMMERCIAL and FINANCIAL CHRONICLE
AND
CORPORATE SECURITIES
AFFILIATES
BELL, GOUINLOCK & CO.
LEGGAT, BELL, GOUINLOCK
INCORPORATED
LIMITED
64 WALL STREET
MEMBERS MONTREAL STOCK EXCHANGE
NEW YORK
MONTREAL
McLeod,Youmg,Weir & Company
LIMITED
80 | I lHlll
11'
DEALERS
IN
GOVERNMENT,
CORPORATION
MUNICIPAL
AND
SECURITIES
mills
50
King Street West
Toronto, Canada
Speitce
Inve stment
276 St. James Street West
&Co
lite
Securities
YORK
Montreal, Canada
Telephone: EMpire 4-0161
Telephone: HArbour 4261
roadway
W
Ottawa
Winnipeg
London
Hamilton
Calgary
Kitchener
Quebec
Sherbrooke
ated with
Vancouver
New York
McLeod,Young,Weir & Ratcliffe
MEMBERS OF THE TORONTO STOCK
CANADIAN
EXCHANGE
MONTREAL STOCK EXCHANGE
Mills,
STOCK EXCHANGE
!»t;2
wlNN1PEG
STOCK
50
ORDERS
EXECUTED
ON
ALL
EXCHANGES
King Street West, Toronto, Canada—EMpire 4-0161
OBOT°
^iliterv
^eiice &Co*
PstpckEKhon9..
i
-
nr—"
,
f
—
THE
Mr.
Robertson and Co., Limited, London, Ont.;
Wood, Gundy & Co., Inc., New York City
T. M. Hockin, I sard,
G. H. Taylor,
Continued
from
Mrs.
&
Toronto
development program
this
designing,
be
done
by
only
building
can
it
Program
the
came
for
the
outline
actor known
as
specification
power
re¬
the NPD (Nuclear
Brawley, Cathers & Company
Members
Investment Dealers' Association
&
Mr.
Limited,
Company
N. D. Young,
Dominion Securities Corpn., Ltd., Toronto
of Northern Can¬
power—the utilities—and, second,
that these plants and their com¬
ponents will be designed and built
by manufacturers. These princi¬
ples have determined the manner
in which we are carrying out the
Mrs.
&
Demonstration) which
we
in remote
areas
now
It will have
demonstration
Gouinlock
Canada)
building in association ada where the cost of conven¬
with Ontario Hydro. The design tional thermal fuels is excessive.
At the present time the annual
of this reactor, which is expected
to come into operation in 1958, is cost of energy for all purposes in
based on the technology which we this country, before distribution
have pioneered at Chalk River. cost, is something like a. billion
are
research and development and operating a power reactor.
Our first design
and feasibility
program it becomes necessary to
demonstrate feasibility. In the re¬ study began early in 1954. From
and
Bell,
of
every
for power reactors,
Gunn,
H.
Power
The Atomic Energy
In Canada
search
Nigel
(newly elected President of Investment Dealers' Association
11
page
Thursday, June 28, 1956
COMMERCIAL and FINANCIAL CHRONICLE
of Canada
20,000 kilowatts. Its primary pur¬
pose will be to demonstrate that
a nuclear station can be operated
as
reliable
a
The
dian
a
balance.
substantial
A
the fossil
a
part
imported at an approximate
a billion dol¬
which
useful
we
believe
may
I
support
of
of
power
paper
reactor
small
power
heat
and process
and
industry,
which
space
will
heating
per
offer these statistics in
annum.
use
4%
approximately
is
poses
rate of
growth
requirements for all pur¬
energy
my
nuclear
opinion
energy
that the
for space
heating and for the production of
process heat has very interesting
possibilities.
Utilities and
With
Manufacturers
From the inception
takes
have
Atomic Power
ties
development
program
have
we
recognized two basic principles—
nuclear
that
first,
now
in the
Nuclear
a
EMPIRE
been
The
from
Committee
Advisory
Power
First,
serves
it
securities,
can
the
shape
&
Co.
Nuclear
Power
various
types
of
with
the scientific
Wood, Gundy & Co., Inc.
14 Wall
Street, New York 5
Street, Chicago 3
Affiliated with
STOCK ORDERS
ON
EXECUTED
Wood, Gundy & Company Limited
ALL EXCHANGES
Office
Head
36
44 KING
STREET WEST, TORONTO, CANADA
Telephone j EMpire 4-1131
Toronto
Quebec
Edmonton
King Street West, Toronto, Canada
Montreal
London, Ont.
Calgary
Winnipeg
Vancouver
Hamilton
Victoria
—
to
ence—and works in close contact
be of assistance.
105 West Adams
reactors
those who are
business of producing
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
of Canada
is
which I hav6 already made refer¬
request.
The Investment Dealers' Association
Branch
for
or
Exchange
direction
carrying out the
design and feasibility studies on
responsible
Members:
Toronto Stock
and
which is best suited to those needs.
and assistance from
Walwyn, Fisher
to
terms of their
respective power needs and, sec¬
ond, it enables us to give our pro¬
Private Investorsholding
purpose.
utilities
of nuclear power in
7
V
the
Atomic
evaluate the economic importance
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
TORONTO
on
dual
a
permits
Company Executives—
BUILDING
3-5821
Branch,
the utilities.
recruited
SECURITIES
BANK OF COMMERCE
Chalk
at
Power
the personnel of which has
GOVERN M ENT-M UNICl PAL-CORPORATION
CANADIAN
on
which the utili¬
plants
power
will be operated by
on
established
have
River
we
represented, and, second,
are
we
First,
forms.
two
Advisory Committee
an
The
of the power
participation of the utili¬
The
ties
gram
Partnership
place in the Cana¬
for example, a
reactor which will
annual
The
lars.
program.
en¬
requirements is
fuel
now
the pulp and
supply
Hydro
annual cost of half
economy—
provide
and
the
NPD
dual-purpose
for
dollars.
one-half
ergy accounts for about 10% of
this cost: fossil fuels account for
of
will
not
produce
competitive costs nor
will it produce all the information
which is required for the design
of a large central power station.
Consequently, we also have under
way a preliminary design study
with supporting development pro¬
grams for a large power reactor—
in the range of 100-200 megawatts.
In addition, we are considering
design studies for other types of
have
CANADIAN
of power.
source
and
at
power
reactors
Toronto Stock Exchange
electric output of
an
Ottawa
London, Eng.
Halifax
Saint John
Kitchener
Regina
Chicago
New York
and
engineer-
Convention Number
A
THE
COMMERCIAL and FINANCIAL CHRONICLE
successful
day's fishing on the Bay of Fundy—Mr. & Mrs. J. R. Shemilt, Gardiner,
Annett, Ltd.,
Toronto; Mr. & Mrs. Doug Annett, Gardiner, Annett, Ltd., Toronto; Jim Belshaw,
Brawley, Cathers & Company, Toronto
ing staff at Chalk River.
this
arrangement
we
are
Under
provid¬
ranged
the
for
Pulp
and
building
Paper
Research Institute.
lombo
in India
John
R.
13
Hughes, Royal Securities Corporation, Limited, President of I. D. A. C. for past year, being
wi.li silver tray in appreciation for his work for the Association
by Wilfred J. Borrie,
Pemberton Securities, Ltd., Vancouver
presented
the
under
Co¬
Plan.
River.
task,
This
since
will
not
power
ing for the maximum inter-play
be
an
Canadian program in atomic ener¬
easy
reactors
and
ideas
any,
between
as
those
who
The contract for the for
his company can play in that experience.
Second, he can un¬ detailed design
development.
dertake the
design and fabrication
of
the
NPD
of power reactors and their com¬
placed with
ponents, with supporting engi¬
neering
development
programs.
At the information stage we are
supplying technical literature on
power reactor development and
tracts
for individual companies and as¬
ments
the
a
have
and
has
of
a
been
and
research
nature
of
the
research
development program and its
expense
placed for
heating, the production
heat, or for all three,
the
are
sociations.
a
For
two-day
example, recently
conference
was
ar¬
we
duce uranium for the atomic
the
NRU
gy program during the war years
and this policy was continued in
the postwar years.
objective
the
of
While the main
in the
program
immediate postwar years was, and
still is, the supply of uranium to
the
States
for
United
military
projects,
economic
we
have been conscious
Continued
part of the
on
page
reactor
and
the
NRX
type
which
we
limited
ponents, must be prepared to give
for the components of the reactor
of
MATTHEWS 6> COMPANY
effective
which
are
Established 1909
application to the data
are
supplied
by
Chalk
Members:
Toronto Stock
Exchange
Investment Dealers' Association of Canada
220
Bay Street
Direct
Toronto, Ontario
Private
Connections
United
with
States
of
30
EMpire 4-5191
principal
cities
in
the
America
R. A. Daly & Company
Limited
Members
and here is
The Investment Dealers' Association
The Toronto Stock
International Bank to help you
Genera!
Great Britain, 480 branches in Canada,
With more than the U.S.A., and the West
and
with correspondents in other
countries—The Bank of Nova Scotia is in
fact
an
International Bank
equipped to give
Offices:
44
King St. West, Toronto. New
underwriters
York Office: 37 Wall St. London Office: 108 Old
Broad St.
canadian
in
Chicago Office: Board of Trade Building.
and
of Canada
Exchange
and
dealers
government,
corporation
municipal
securities
Branches Outside Canada
In Jamaica:
Havana
Kingston and 17 other branches. In Cuba:
and
7
other
branches.
In
Trinidad:
Port
Private wires
of
to
Montreal and New York
Orders executed
authoritative information and expert
guidance on credit, or any of the many
banking and financial problems and details
In Dominican
connected with Trade.
spondents all
you
Spain. In Puerto Rico: San Juan, Fajardo and Santurce.
on
all
Exchanges
Republic: Ciudad Trujillo, Santiago De
Los Caballeros. In the Bahamas:
Nassau;
and
corre¬
44
KING
The
,
SANK
of
over
the world.
STREET
WEST
414
ST.
JAMES
ST.
NOVA
SCOTIA
TORONTO
MONTREAL
EMpire» 4-4441
pro¬
ener¬
the
for
in
very
for the
Canada offm gout opportunity
Indies,
ener¬
one
man¬
swimming-pool type and ufacturer.
The manufacturer, if he is to
design and manufacture of
a
loop system for the NRU re¬ be in a position to supply the
we
are
also arranging frequent actor.
Proposals have been in¬ domestic and foreign requirements
conferences at Chalk River, both vited for the supply of fuel ele¬ for power reactors and their com¬
of
power reactors is one
part—and
undoubtedly beyond
the abilities of the Canadian
reactor
development of
material for atomic
another
happen to have a
large stake. Canada began to
Purchasing Policy
The
is
which
process
since
been
manufacturer. Con¬
also
design
of
construction
reactor
space
raw
gy
These are only a few of the their components do not lie with¬
Participation in engineering de¬
velopment, design and fabrication highlights of a large and expand¬ in the normal design and fabricat¬
must operate
power plants and is
obviously the most important ing program of industrial partici¬ ing experience of the Canadian
those
who
are
responsible for side of our
partnership with in¬ pation, but I believe they serve manufacturer. Lest we become too
their design.
dustry. This participation began to clarify the respective areas of discouraged on this score, I might
Atomic Energy of point out that a similar situation
The participation of the manu¬ in a major way on the NRU(proj¬ responsibility.
More
than
100
Canadian Canada Limited must accept the exists in other countries. Working
facturer can involve two stages. ect.
First, he must obtain the kind of companies have been engaged on responsibility for supplying the as partners, I believe we can
information about power reactor the fabrication of parts for this data necessary for the design of create a prosperous industry.
development which will enable reactor, involving special designs nuclear plants, whether they be
Uranium Production and
him to determine what part, if outside of normal manufacturing used to generate electric energy,
of
The production of uranium,
gy.
the
MArquette 8038
WEST
14
THE
14
Mr.
&
Mrs.
L.
P.
Letarte,
La
Corporation
de Prets
de
developing a resource which
an important bearing
would have
the
peaceful
of
uses
atomic
energy.
the
am
sure you
current
are
policy
M.
Fisher & Co., Toronto;
C. E. M. Purdy,
a
total
value
of approximately and salaries, supplies and services,
will total approximately $863,000,investment houses $700,000,000. Our expectation is
would be prepared to risk invest¬ that this amount will be in excess C00, of which roughly half will
be for wages and salaries.
This
ment in uranium production if a of a billion and one-quarter dol¬
new
and important industry will
decent incentive were provided. lars when the negotiation of con¬
provide direct employment for
This incentive has taken two forms tracts now in process has been
try
throughout the program that we
I
Heath,
convinced "that the mining indus¬
Program
familiar with
covering the
and
This means that the about 13,000 people and employ¬
a guarantee that Eldorado completed.
ment for many others in the vari¬
purchase all uranium which gross value of our uranium sales,
ous
industries which
support a
is offered under a published price when all of the mines including
purchase
of
uranium.
Briefly schedule and, second, a guarantee Eldorado's mines are in full pro¬ mining operation.
Certain of the member
com¬
stated, the position is as follows. that Eldorado will purchase ura¬ duction, will be at the rate of
$300,000,000
per panies of your Association have
The policy of encouraging uranium nium under a special price for¬ approximately
played an important part in the
production by private companies mula, In the latter case, the guar¬ annum, ranking uranium in first
of
this
development.
place in the annual dollar value financing
was first announced in March 1948.
antee is subject to certain condi¬
of
metals
produced in Canada. Approximately $100,000,000 of the
Those of us who had some part tions
namely, that applications
Since this income will be derived capital
required has been fur¬
in establishing that policy were for
special price contracts shall
in large part from export sales, nished by investment houses, and
have been submitted on or before
the major part of this has come
uranium production will have a
March 31, 1956, and, second, as¬
significant effect on our trade from Canadian investment houses.
surance that production will com¬
We estimate
that an additional
will
—
1957.
Underwriters and Distributors
As it happens,
made
to
and
Municipal and
Corporation Bonds
•
Enquiries invited
date
the
have
Sept.
30,
all purchases
been
made
balance.
It
is
estimated that
capital
ex¬
penditures for plant, equipment
and
machinery, housing, power
$190,000,000 will be required to fi¬
nance
the companies which now
have
contract
applications
in
price formula
lines, roads, etc., will be approxi¬ process. I hope that a substantial
our present
$270,000,000.
Preproduc- part of this financing would also
information this situation is like¬ mately
tion expenditures—that is, expen¬ be supplied by Canadian invest¬
ly to continue.
ditures on diamond drilling, shaft ment houses.
The results of the purchasing
The statistics I have given you
sinking and mine preparation —
policy have been quite remark¬
will
account
for
an
additional suggest at once the importance of
able, when one considers the short
Operating expendi¬ maintaining the uranium industry
period that it has been in effect. $57,000,000.
as a
going concern in the period
At the present time special price tures, during the production pe¬
after March 31, 1962, the present
contracts have been written for riod of the contracts, for wages
under
of
than
later
not
mence
Government,
our
—first,
In Canada
on
Walwyn, Fisher & Co., Toronto; Tom Grills, Walwyn,
Grills, McLeod, Young, Weir & Company, Limited, Toronto;
Stanbury & Company, Ltd., St. John, N. B.
B.
R.
Stuart
Mr. & Mrs. S. H.
Mrs. Paul Bertrand,
13
The Atomic Energy
were
Thursday, June 28, 1956
FINANCIAL CHRONICLE
Quebec, Quebec, Que.;
Robitaille, Lajoie, Robitaille & Co., Ltd., Montreal; Mr. &
Rene T. Leclerc, Inc., Montreal
Continued from page
COMMERCIAL and
on
special
the
of
basis
^
HARRISON & COMPANY
LIMITED
Members of The Investment
66
KING
Dealers' Association of Canada
STREET WEST, TORONTO
Telephone:
1, CANADA
EMpire 8-1891 j
Offices
CALGARY, ALBERTA
WINNIPEG, MANITOBA
HAMILTON, ONTARIO
Cochran, Murray
8 Co.
Limited
Greenshields & Co Inc
Greenshields & Co
Members Montreal Stock
Underwriters and Distributors
Exchange
of
The Toronto Stock Exchange
Canadian Security Issues
Canadian Stock Exchange
>
Member
Investment Dealers' Association
of Canada
•
Cochran,Murray 8 Hay
507 Place d'Armes,
Montreal
Member of the
Toronto Stock
Exchange
Dominion Bank Bldg., Toronto,
Hamilton
Telephone Em. 3-9161
Kitchener
" London
New York
Ottawa
Quebec
Sherbrooke
Toronto
Convention Number'
Bob
THE
Gouinlock, Bell, Gouinlock & Company,
Limited, Toronto; Hector Vidricaire, James Richardson
Sons, Montreal; W. G. Pepall, Bell, Gouinlock &
Company, Limited, Montreal; Bob Clark,
Calvin Bullock, Ltd.i'Nevr York
City
termination
date
under
purchasing
both
for
deliveries
arrange¬
ments.
What
do
probable
March
know
we
markets
about
the
beyond
the
31, 1962, date?
Market
program was the
supply of urani¬
military projects. There
information available at this
time as to what the level of de¬
no
for
mand
be
military
after March 31,
1962.
The
of atomic energy for tactical
heads
new
have
use
war¬
and
various
a
will
purposes
the
United
States
will
a substantial demand for
uranium beyond 1962.
What part
of this demand will be for mili¬
tary
I
what
and
uses
I
uses
know
will be
I pointed out a moment
ago that
the main objective of our uranium
for
that
foresees
for civil
Military and Civil
Uranium
um
dicates
do
Future
is
COMMERCIAL and FINANCIAL CHRONICLE
do
part will
not
whether
such
know,
the
to
be
demand
for the propulsion of
types of naval vessels is
tains
development
some
effect
on
may
the
mestic
buying
end
1966.
of
its
the
the
to
program
While
do¬
primary
on
requirements,
and
civil
certain
a
I
the cost of generating
in a nuclear power plant.
think I have also made it clear
For
requirements
date.
Each
the
special
an
price contracts
option clause which
is
a
example, if
we assume that
1965, it is not too difficult to pre¬
dict in what regions of the world
nuclear power will be used in
that year.
con¬
per¬
about
in many ways but
particularly
in
they can
uranium, or
what is commonly called the dif¬
ference in the burn-up factor. I
think
it
may
be
helpful
at
develop
this
of
new
extension
ore
reserves
is
to
to
However,
were
able
ably
arrive
accurate
amount
will
to
of
be
the
unable
even
at
a
brief
description of what is
meant
re¬
place present reserves, it also in¬
estimate
nuclear
we
of
power
generated
in
if
programs?
the
previous
remarks
it
natural
ments
uranium,
of
uranium
power
program
small.
As
the
for
require¬
a
would
nuclear
be
very
it
happens, there are
physical limitations and cost limi¬
tations which stand in the
way of
standing of the economics of
tential
clear
nu¬
of
a
ton of uranium.
Continued
power.
on
The
page
16
faUUWWWWUWHHHWUUHiWHWHHHWVVUWV)
a
Thomson Kernaghan & Co. Ltd.
Members
The Toronto Stock
which
Specialists in Canadian Industrial
given
would still be
to forecast the
amount
since this will depend
type of
Mining and Oil Securities
of
on
E. B.
power reactor and the
fuel system which
are
Exchange
the
power,
my
Described
possible to utilize all
of the heat potential of a ton of
we
civil purposes—that
From
Factor
were
the full utilization of the heat
po¬
the uranium requirements for this
power
a
Burn-Up
If it
by the burn-up factor, since this
is necessary to a
proper under¬
reason¬
probable demand for uranium for
is, for
this
point if I attempt to give you
—
purpose
the
two factors.
region by 1965,
know
we
relationship
differ
differ
amount of energy which
extract from a ton of
power can be generated
at competitive costs not later than
the present contracts.
do
close
reactors
they
nuclear
of
buyer to extend the con¬
tract at a negotiated price. It
may
be anticipated that the situation
What
and
power
that there
as
military
requirements for uranium beyond
1962.
There may also be some with respect to the exercise of
significance in the fact that the these options will be clarified well
United
States
Atomic
Energy in advance of the expiry date of
Commission has extended
future
second,
mits the
which
and
which
that it is difficult to forecast both
beyond
now
future power re¬
the conventional
on
possible, but it is likewise obvious between these
military
are
those
may
soon
we
of energy, and their
cost,
will be available to meet
sources
contract that he should
as
that
be used and the
in which it will be used will
quirements
interest of the producer who
now has
a
contract or who
a
clear
depend, first,
nor
the
receive
Chippindale, Calvin Bullock, Ltd., Montreal; Mrs. J. A.
MacMurray, St. John, N. B.; S. M.
Daniels, Eastern Securities Co. Ltd., Pictou; Mr. & Mrs. E. K.
Robb, Eastern Securities Co., Ltd.,
Fredericton, N. B.
which it will
areas
require heavy
imports of uranium beyond 1962.
Obviously it is very much in
obtain this information
Alan
able to predict that nuclear
power
can and will be used.
The extent
to
as
be
&
Directors
Kernaghan
—
F. C. Woolley
W. W. Davison
K. A. W. Sutherland
J. F. Willis
used. Power
E. R.
Henry
67 RICHMOND STREET WEST
TORONTO
1
EMpire 8-3871
Underwriters and Distributors
EMpire 4-4256
KERNAGHAN & CO. LIMITED
Members
v
Government of Canada Bonds
Provincial and
Treasury Bills
Municipal
The
Investment
Dealers'
Association
of
Canada
UvUMUnWWVVUWWUVHHHUHMHHHWHUWUUVV
Debentures
Corporate Bonds and Shares
Affiliate of Watt & Watt
Statistical information
promptly
Stock
on
request.
on
Canadian Securities
Orders executed
Exchange through
our
the
Members
Toronto
Toronto Stock Exchange
Montreal Stock Exchange
Canadian Securities
Goldman, Sachs & Co.
Street, New York
Watt &Watt
BAY STREET
TORONTO, CANADA
437
ST.
Buffalo
National Association
Fort William
Security Dealers, Inc.
Port Arthur
of Canada
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New York
Montreal
of
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Investment Dealers Assn. of Canada
Incorporated
Members
limited
The Investment Dealers' Association
Winnipeg Grain Exchange
Private Wires Between
Equitable Securities Canada
Members:
Street, Toronto
supplied
affiliate Member Corporation.
Direct private wire with
30 Pine
on
6 Jordan
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ST.
W.,
Street, New York 5, N. Y,
London, Ontario
WHitehall 4-3262
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Bell
System Teletype N. Y. 1-374
4
Thursday, June 28, 1956
THE
FINANCIAL CHRONICLE
COMMERCIAL and
16
Continued from page
type of reactor, or which combi¬
nation of reactor types, will pro¬
15
Kilowatt
duce the lowest coat per
decisive
nour—tne
Piogiam
The Atomic Eneigy
nuclear
the
ess
what
used
be
as
a
used
uranium
for nuclear
programs—first, tne future
power demand and the conven¬
tional sources of power which will
power
duction
to meet that demand;
be available
of the
in forecasts
applied
been
power
is contained in a paper
presented at the Geneya Confer¬
ence by Sir John Cockcroft.
The
United States forecast is set out in
McKinney Panel
Impact of the Peaceful
Atomic Energy, which was
the
Uses of
submitted
Jan. 31 last. The Canadian
ergy on
forecast
delivered
paper
a
gical
some
increase
will bring about
research
in
the life of the
capital
of
for
MEMBERS
The Investment Dealers'
347
ado
in
Branch Office
base metals.
doubt
Eldo-
for
Mining and Refining Limited,
the
with
cooperation
Mines
Department
of
Mines and Technical Surveys,
has
a
of
major
the
under way in
program
The
military demand also suggests that
should
we
thought
new
These
to
be
taken a first
development
the
have
We
markets.
serious
giving
that
are
there will be
that
be operated as
can
Regular commission rates or traded in New
reactors
reliable and
power
a
supply this need and, because
be
can
made available in
a
Affiliated with
choice
of
reactor
and
types
New York 6, N. Y.
cheap and abundant supply
A
energy
has been
Third,
most
Wire to Toronto, Ontario
if
even
optimistic
we
accept
forecast
for
installation of nuclear power
tions
juiiiiiiimimiiiiiiMmiiiMiiiiiiiiimiiiiiiiiiiiiimiiMmmiiimiiiiiimimiiiiiiiiL
remarkable
our
E
Established 1901
shown
as
PLAYFAIR & COMPANY
j
Members
~
The Toronto Stock Exchange
=
>
E
S
Edmonton Stock Exchange
Z
Z
Investment Dealers' Association of Canada
::
doubtedly be
STOCKS, BONDS and MINING
1
SECURITIES
|
=
Si.
S
Correspondence Solicited
use
68 King St. West
•
Toronto 1
§
E
Telephone: EMpire 3-6001
H. L.TRAPP
J.A.GRANT
E. W.SIMPSON
E
E. C. WEST
R.T.NICOL
G. L. TIMMINS
S
-
=
power
States,
the
the
sta¬
sur¬
condition of our
/
'
tk
I
Brokers
trades
No reliable forecast
uranium
for
and
ments
countries
have embarked
i
a
uranium
on
nuclear power
»
MEMBERS NEW YORK. AMERICAN. TORONTO AND OTHER
LEADING STOCK AND COMMODITY EXCHANGES
j
the
requirements
of
Canadian nuclear
accepting
to the
plants—will only take up
Street, Toronto
EMpire 8-4871
Founded 1879
as
rate of the installation of nuclear
power
York 5
Dlgby 4-6300
360 Bay
a
request
request.
36 Wall Street, New
Europe,
for
or a
Our fortnightly
Bache & Co.
jj
as
program—again
optimistic forecast
power
on
»•
which
the countries
will reach
proportions until well
such
the
l
,
into the 60s.
Fourth,
office
Address Canadian Department
H
substantial
quote, an
Canadian Market Letter
programs
Western
our
we
these
those
of
order,
a
information, try Bache.
in
programs
that
direct wire to
for
other coun¬
should keep in
are at
a
relatively early stage in their
development. It does not appear
likely that the uranium require¬
mind
a
volume.
for
is available
requirements
have
increasingly placing their
Why? As Toronto Exchange
Whether it's
that
1965,
until at least
possibly until 1970.
are
us.
there, designed to handle
period. This condition is likely to
prevail
we
I
dealers demanding fast, reliable
through
members
programs
in
jand
Canadian service
the United
Canada
and
Kingdom
of
■5
three
the
in
in
United
the
in
programs,
E
a
I
early 60's will be greatly in excess
of the quantities required for im¬
tries, but here
2
during
future progress.
/
which I have mentioned, the
production which
are now able to project for the
power
I
1
progress
past 25 years, and it will un¬
r
rate of uranium
mediate
,
of
condition of
-
veys
we
Z
a
uranium increases.
Telephone WOrth 4-5210
I
re¬
There will
be an incentive to go after higher
burn-ups as the cost of natural
actor fueling systems.
Goodwin Harris & Co. Inc.
5
establishes
ceiling for future energy costs.
cheap uranium will be an impor¬
tant
factor
in
determining the
Direct Private
it
almost
cheap source of electric energy.
Second, an abundant supply of
York in United States funds, net.
Broadway
need
Nuclear energy will
rise sharply.
the
way
be no
a
of energy in this
used—which, in turn, will depend
on
how
soon
we
are
able to
SARNIA, ONTARIO
demonstrate
149
there can
country, if energy costs are not to
of
under
develop¬
and
research
a new source
recently
step in this direction.
how
will derive any benefits
unlimited quantities, it
uncertainty as to the future
requirements will depend on the 1
extent to which nuclear power is Negotiations
Toronto, Ontario
—
we
other
Branch
this
at
ments for power programs.
Association of Canada
Bay Street
soon
program,
stage in the development of power
reactor
technology to
establish
firm estimates of uranium require¬
Toronto Stock Exchange
costs for our
the
Repeated
impossible
is
estip^ted7~"Wmle thbre
be disagreement as to
this field.
Conclusions
readily
may
ment
drew from it.
Goodwin Harris & Company
be
Extraction
prograpa^^an
materials
raw
from
of
derived froi
The benefits to be
the
mines, as compared with
tion
its
its im¬
portance for our future.
costs of 20%-25% for the extrac¬
uranium
nature,
its
of
its objectives, and
account for about 50%
of the total operating
this analysis, but I would like
to repeat the conclusions which I
it
appreciation
scope,
improving ore
by
methods.
extraction
costs now
you
First,
the Canadian
major contribution to
a
reduction
cost
give
Time does not permit me to
make
can
programs.
power
will have
there
that
hope
dian atomic energy program some
uranium
our
producer in a strong
Developers Associa¬
plutonium than it consumes. No
tion I gave an analysis of the find¬
one
can
say at this time which
ings of these several documents
as they affect the requirements of
Previous
in
expense
contracts should put
and
uranium
I
uranium
from
this admittedly
policy of permitting a full emerged
write-off of preproduction
and sketchy description of the Cana¬
Trade and Com¬
merce, who is Economic Consult¬
ant to Atomic Energy of Canada
is called a single-pass reactor—
make it necessary to remove the
Limited, and Dr. W. B. Lewis, our
that is, one in which no recycling
uranium fuel from the reactor
Vice-President in Charge of Re¬
is done—to the fast breeder re¬
when only a small fraction of its
search and Development at Chalk
actor. which produces more fis¬ River.
heat potential has been extracted.
In a recent address to the Pros¬
While we expect that metallur¬ sionable material in the form of
pectors
against the diversion of
for military uses.
competitive
John Davis of the position. We also believe that we
Dr.
Department
Cooperation. In either case, there
would
be
adequate
safeguards
Our
Geneva Confer¬
the
at
by
ence
in
contained
is
-EJJRATOM or the Organ¬
foK. European Economic
as
ization
price as low as $8,
the Joint Congres¬
on Atomic En¬
to
such
of the
now
being produced in
world is being sold at a
the free
Committee
sional
Agency for Atomic Energy, o,r it
could be a regional organization
So far as I am aware, none
uranium
International
proposed
the
as
agency
membership such
universal
with
be an
could
This
work.
the
frame¬
international
acceptable
high-grade uranium concen¬
for the period 1962 to 1986.
a
trate
the report of the
on
should
Commission, in which it has es¬
tablished a price of $8 per pound
for
the position that,
possible, such an export policy
be established within an
if
for this view
in the recent announcement of the
United
States
Atomic
Energy
forecast
which was
be
for
Our govern¬
purposes.
ment has taken
I find support
case.
Kingdom
united
peaceful
com¬
be
likely to
is
this
tinues,
of the next 20 years.
Tne
higxily
under
sold
be
will
requirements
programs in
unburned or depleted Canada, the United Kingdom and
the united btates over tne period
and the plutonium, and
nuclear
for
by the fact that uranium can
used for military as well as
petitive conditions. Price will un¬
doubtedly be an important factor
in our ability to obtain markets.
Even if the military demand con¬
uranium
of
range
a
complicated
other countries is
to
beyond
should an¬
situation where uranium
demand
military
ticipate
power;
period
suggests that we
1962
of generating nu¬
and, tnird, the type
of power reactor which will
be
used.
These
three factors have
clear
the
over
the
of
second, the cost
by re-entering
system of the
reactor
said up to
have
l
quirements of uranium
these to the fuel
reactor. This is
fuel.
called recycling. Theoretically, it
Third,
certain new elements
is possible to
continue this re¬
known
as
fission products are
created.
These fission products cycling until all of the heat po¬
tential of the original fuel has
interfere with, or poison, the nu¬
been utilized.
clear reaction. The effect of this
However, the cost of chemical
poisoning is crudely analogous to
the effect on combustion of the processing places some limit on
the number of recycles which may
waste products which are formed
be economic—or, to put it another
when coal is burned. This fission
way, at a certain point it may be
product poisoning plus our inabil¬
cheaper to buy new fuel. There
ity thus far to find materials for
are
a
number of possible ap¬
sheathing the uranium fuel which
will stand long periods of irradia¬ proaches to reactor design, as the
design affects the percentage of
tion at high temperatures, without
capturing
too
many
neutrons, burn-up. These range from what
therefore,
a
think it will be evi¬
that three factors must be
in assessing the probable re¬
dent
under the
combustible, or to be more exact,
the fissionable part of uranium is optimum conditions which we can
now
visualize this improvement
its U-235 content. Natural urani¬
is not likely to increase substan¬
um consists of one part of Urani¬
tially the amount of the burn-up.
um 235 and 139 parts of Uranium
Consequently, if we are to obtain
238—that is, the content of Urani¬
um
235 in natural uranium
is a much higher percentage of
about
0.7%.
When uranium is burn-up, we must find a way of
burned in a reactor, several things using the unburned or depleted
uranium and the plutonium in the
happen.
First, some part of the U-235 is spent fuel element. This can be
done by extracting from the spent
consumed.
fuel element in a chemical proc¬
Second, some atoms of the U-238
converted
into plutonium,
which is itself fissionable and can,
for
this point, I
initial fuel charge, even
are
tne
in
power program.
From
In Canada
lac tor
designs
reactor
of
choice
uranium pro¬ whereby the United Kingdom
of the will obtain from Canada a sub¬
stantial part of the uranium re¬
next 20 years.
The requirement
quirements for its nuclear power
in 1966 could be met very readily
program.
It has also been an¬
by the production from one of our
nounced that we will consider ar¬
smaller mines, and the require¬
supplying small
ment in 1976 could be supplied by rangements for
quantities of uranium to otherj
one of our larger uranium mines.
countries for research and devel¬
This means that we will be de¬
opment purposes. The establish¬
pendent on export markets after
ment of an export policy which
1962, as we are at present.
would permit large-scale exports
The uncertainty as to the extent
small part of our
a
L
All
our
offices
are
open
Saturday mornings
JE
THE COMMERCIAL and
Convention Number
Mr.
&
Mrs.
G.
C.
Continued
Howard, F. J. Brennan <£ Co., Ltd., Charlottetown, P.
Riley, F. J. Brennan & Co., Ltd., Monckton, N. B.
Reginald
Mr.
E. I.; Mr. & Mrs.
Mrs.
&
Arthur
lead to
a
severe
rather
theoretical, but it is in fact a very
practical matter in central bank
operations and was very much
in our minds in connection with
developments of the
the
past 12
of the a greater or less degree, and can
demand and to that extent damp at times work against central bank
It is particularly import¬
the rise in interest rates. Central policy.
bank action does not usually cause ant that the process of activation
changes
in
interest
rates, but of inactive money should com¬
restrains them, moderates them. mence before inflationary devel¬
meet
only part of the demand
increase in the total
supply of money, interest rates do
rise until there is some abatement
is filled by an
of
demand,
and/or
there
is
change in the distribution of
total supply
shift from the inactive
this
important to
inactive
viously
very
large scale.
deposits to
curred
rather
recognize that
would
of
be
then
a
money
on
market dealer to bor¬
day-to-day loans in
row
as money can be obtained
elsewhere at a better rate, no one
market, than to borrow
long
bank,
rise
Rate
Role
the central
to borrow from
tries
to
but if other interest rates
a
point where it is more
expensive
for
a
of
bank
rate,
central
We
in
speaking of a situation
are
which
the
central
Continued
bank
on
point where another method
purchase and re-sale arrange¬
To meet emergency 'situa¬
tions and for the smooth func¬
or
ments.
of
a
lender of last resort.
be
violent capacity, for
is
and failure
ready
a
to
act
price, and the price
represented by the rate of in¬
terest
which
Canadian
It must
in that
the
central
bank
Investment
Securities
1056
Underwriters
and
Distributors
Our
organization is actively engaged in under¬
writing and distributing Canadian Government,
Canadian
Provincial, Municipal and Corporate
Securities
It
Burns Bros. & Denton
is
also
Securities.
equipped to execute orders on all
Canadian Stock Exchanges.
Limited
Your
Members:
Toronto
•
The
Investme
Montreal
•
it
Dealers'
Ottawa
•
Burns Bros. &
of
Association
Winnipeg
•
Hamilton
Company
A. E. Ames & Co.
Incorporated
Stock
Canadian Affiliates in
Exchange
Toronto
DIRECT!
WIRE
Boston
New York
The Toronto Stock Exchange
Canadian
Inquiries Are Invited
Canada
Limited
Members:
SERVICE
Calgary
,
Montreal
Vancouver
and other Canadian Cities
TORONTO
MONTREAL
OTTAWA
HAMILTON
page
increasing the total money sup¬
always
its
cheaper rate.
Treasury Bills, or more expensive
tioning of the money market the
central bank occupies the position
then
with
bank
by money market dealers to the
central bank for short-term loans
a
the
ex¬
natural tendency to turn
a
the
to
chartered bank
day-to-day loans or sell
level
isting
there is
atihe
ply may be involved, namely re¬
course by the chartered banks and
earlier the expansion
to moderate
potentiality always exists to
to the
it finally oc¬
gradual,
than
for
generally full employment has
reached, the rise of interest
continue
The change in
interest rates when
in this
As
rates in the market may
have
on
advances,
been
of pre¬
holdings
its
on
Returning to what happens
when the demand for money con¬
tinues to rise after a condition of
to offset the be¬
be sufficient
lated process of activation
active, as it were.
It is
then
would
restriction
the
supply, a
money
might be necessary, because
tion
to
under
drastic ac¬
conditions where very
posal of some at least of those who
are seeking
to borrow. There is
thus an increase in the rate of use
existing
it is found neces¬
to restrict the supply
sary
a
the
supply of money, some
existing holders being found who
will put their money at the dis¬
the
should continue with¬
out limit until
existing
of
Bank
part
opments gain too much strength,
rather than that expansion of the
charges
to call its
months.
But since
G. E.
country called the bank rate.
contraction.
In Canada
to
Mr. & Mrs. D. W.
Securities Canada Limited, Toronto;
Leslie & Co., St. John, N. B.
Equitable
Armstrong,
credit would
of
from page 5
Central and Investment Banking
therefore
Dymond,
J.
Perhaps all this sounds
is
17
FINANCIAL CHRONICLE
London, England
Winnipeg
Victoria
has
18
18
THE
''
$
COMMERCIAL and
,'V/'/f'"
'y
Y.
.?'<
CHRONICLE
FINANCIAL
\
,
,
Thursday,
June 28, 1956
»
.
J
Hal
Murphy,
Commercial
&
Financial
Duncan
Falkner,
Chronicle, New York; Mrs. Raymond
Wood, Gundy & Co., Ltd., Montreal
Trigger,
New
York;
Libby Armour, Brawley, Cat hers & Company,
Toronto; David K. Drury, R. D. Steers & Co., Ottawa;
Mrs. George Stewart,
Tcronto; Doug Armour, Brawley, Cathers & Company, Toronto
Continued from page 17
Central and Investment Banking
In Canada
been
40 Adelaide Street
West, Toronto
from
cording
to
its
open
day
best
market
to
day ac¬
judgment of
what is appropriate in the circum¬
stances.
If it is not prepared to
MEMBERS
increase the overall
money supply
without limit by
purchasing all
The Investment Dealers' Association of Canada
and all Canadian Stock
conducting its
operations
Exchanges
<the
securities
offered
to
at
a
level of security prices, it
would be frustrating its own ob¬
jectives to do so by making loans
on a
large scale. It must, in such
raise
rate, the bank rate.
BRANCHES
it
given
circumstances,
its
lending
(Uptown)
Hamilton
Niagara Falls
be
theory the bank rate could
changed every day in very
small fractional
Oakville
Oshawa
Peterborough
Stratford
amounts, but it is
usually considered more conven¬
ient to do
St. Catharines
Welland
New York
it in
at intervals.
Act
requires
rounder
amounts
The Bank of Canada
that
the
rate
shall
at all times be made public.
CORRESPONDENTS
I will not take time
casion to relate the
New York
St. Louis
Buffalo
Brockville
Kingston
Owen Sound
Woodstock
this
the
ada.
This
detail
1955
in
was
and
1954.
changes
in
covered
annual
our
bank's
chiefly
the
war
discount
of
oc¬
for
countries
significant
movements
some
There have been
other
Before the first world
tral
in
reports
in
foreign
maintenance
too)
exchange
of the
struments
recognized
of
domestic
tended to be rather
to
occur
only
gold
years
much
when
more
in¬
as
policy,
infrequent and
it
our own money
into commission
operating factor rather than
as
a
symbol.
The question of
of importance.
bank is going
timing remains
Unless the central
to
tie
to
years
Canadian
rate
in
or
303 Dominion Bank
change
either
A
Complete Investment Service
Connected
GARDINER, ANNETT LIMITED
in the
same
invariably
are
more
Upward movements
likely
to
330
downward
ones,
change retains
and
some
and
for
it
indicates
that
Offices located at
360
St. James St. West
our
Main Office
Boston, Mass., Washington, D. C.,
EMpire 4-9271
Laidlaw & Co.
Members
44
Established 1842
Exchange
King Street West, Toronto
EMpire 6-9211
,
25 BROAD
STREET, NEW YORK 4, U. S. A.
Members New York Stock
upward
the
central
bank feels that the increase in the
Bay Street, Toronto
The Toronto Stock
an
symbolic sig¬
nificance, arising out of the cir¬
of Canada
GARDINER, WATSON LIMITED
synchronize
closely with market changes than
Bloomfield, N. J., Princeton, N. J., and Oil City, Pa.
Members
The Investment Dealers' Association
be
cumstances which give rise to it,
In recent
by private wires with
bank
may
direction, though not
so.
MONTREAL
and Branches at
the
followed by further market
change
brokers, banks and institutions
Bldg.
in
direction
de¬
frequent
TORONTO
to
alteratively to lead the
A
of specialized financial service
Branch
rate
rate may seem on occasion to lag
Kitchener
Fifty
its
fixed relationship with other
rates, Treasury Bill rates, for ex¬
ample, the time a change in bank
some
13
Over
market
change
was
in the economic outlook.
years
an
market.
changes in central banks' discount
though
as
was
of
rate
had reached the point where bank
rate could be put
behind,
terms
standard; for awhile in later
rates,
opment of
cen¬
a
rate
sired to emphasize a major
history of de¬
sig¬
and
bank
particularly
since 1951 in, the United States,
and by February, 1955 the devel¬
merely
use
of
use
noticeable,
Trenton
Hanover
on
in
been
Montreal
Ottawa
velopments
nificance of bank rate and of the
short-term money market in Can¬
and
In
Toronto
flexible
more
has
Exchange and other leading Exchanges
i9
THE COMMERCIAL and
FINANCIAL CHRONICLE
Convention Number
:
*..■
Mr. & Mrs.
W.
J. Piper, A.
of
Company,
excessive.
interest rates is
Loans
Deposits,
and
Sale of
Investments, and
Governments
A
description of the movement
deposits over the past 12
of bank
provide a good illus¬
several points made
above and will lead me into a dis¬
cussion of the part played by in¬
vestment dealers in the adjust¬
ment of demand and supply in the
months will
of
tration
Frank Rose, Dow, Jones
Deacon
Nesbitt, Thomson and
Distribution
You
may
of
Governments
be interested
expansion
field.
deposits
of the
rose
by
$1,500
J. W. Hetherington,
the increase in the government's
provided most of the funds used bank balances. On this view, the
in the acquisition of securities by
funds
used
securities
to
in
Canada
Continued
Bonds with
Savings
on page
20
Securities
Canadian
regarding Canadian
Enquiries invited
Government,
market
government ac¬
provided by the genpurchase
to
for
counts were
match off the net increase
be
Total Canadian
chartered banks
(adjusted for changes in "float")
rose
by $550 million in the 12 holdings and a decrease of $1,250 this was approximately equal to
months ending May 30, 1956. This million in holdings of government the increase in active note cir¬
culation.
was more than accounted for by a
bonds.
rise of $310 million in personal
The $440 million taken in one
Accommodating such a huge ad¬
savings accounts and of $325 mil¬
justment in the distribution of form or another by the govern¬
lion
in Government
of Canada
government securities (in addition ment and government accounts
balances. All other deposits (ad¬
not
provided by running
to the large sale of Canada Sav¬ was
justed for changes in total float), ings Bonds) was quite a challenge down government cash balances;
i.e., the bulk of the "commercial for our financial machinery, and on the contrary these rose by
money," fell by $80 million for
about $300 million.
Notionally,
those
who worked together to
the period as a whole, despite the
make it possible, and particularly you might say that the increase
great rise in bank loans, in gen¬
in Canada Savings Bonds bought
eral
economic activity, and in the investment dealers, can take a
spending of all kinds.
considerable measure of satisfac¬ by the general public to the net
In the
12 months, bank loans tion from the manner in which amount of $340 million (net of re¬
and non-government investments
demptions
during the period)
the challenge was met.
financial
& Co., New York; Mr. & Mrs.
Limited, Toronto
Findley Coyne,
in the government accounts; an altern¬
ative way of looking at it would
of totalbank figures, on the basis of prelimi¬
assets (and therefore of deposits) nary estimates for the end of May.
but to an increasing extent the It appears that, a part from Can¬
expansion of the chartered banks' ada Savings Bonds, $400 million
loans and non-government invest¬ in government securities was tak¬
ments had to be financed by the en by the general public, another
liquidation of their holdings of $400 million by government in¬
government securities. The one vestment accounts (using money
has
been fully matched by the which originated with the general
other for the past six months, and public), and about $40 million was
for the 12 months as a whole the accounted for by net reduction in
reduction in chartered bank hold¬ the outstanding amount of direct
ings
of
government securities and guaranteed marketable secu¬
amounted to $925 million.
This rities of the Government of Can¬
ada. Only $80 million was added
was the net result of an increase
of $325 million in Treasury Bill to he holdings of the central bank;
some
Bank
& Mrs. J. R. Oborne,
Ltd., Toronto
During the early part of this pe¬
riod
there
was
in consequence
current lev¬
demand for money at
els
Ltd., Montreal; Mr.
E. Ames & Co.,
Municipal and Corporation
Preferred and Common
Bonds
Stocks
corporation
bankers Bond
Limited
Established 1912
Business
44 King Street
West, Toronto
hamilton
london
kitchener
Members of
The Investment
million, or 29%.
\
Dealers' Association
The Toronto
of Canada
Stock Exchange
OPPORTUNITIES IN CANADA
Our
in
facilities
the
can
be of valuable assistance to
those interested
of Canada and of benefit to
selecting suitable investments through which to
industrial development
investors in
participate in
DOHERTY
MEMBERS
Canada's assured growth.
Limited
Members of
The Investment
Head Office:
INVESTMENT DEALERS'
HEAD OFFICE
Dealers' Association of Canada
255 BAY
W., Montreal
principal Cities of Canada
STREET, TORONTO
LOCAL
BRANCHES
ST. CLAIR AT
BLOOR AT BAY
Nesbitt, Thomson &
Members
Montreal Stock
BRANCH
Co.
TIMMINS, ONTARIO
Nesbitt,
Thomson and Company,
25 Broad
|
Street, New
140 Federal
Inc.
Street, Boston,
wire connections
Montreal
•
All Branches
Vancouver
•
D'ARCY M.
between
ROADHOUSE
COCHRANE
CLIFFORD T. LOW
C. B.
London
*
Partners
Massachusetts
Ottawa, Hamilton, Kitchener,
(Ont.), Winnipeg, Calgary and Vancouver.
York, Montreal, Toronto,
New York
York 4, N. Y.
JAMES W.
New
OFFICES
Calgary
T. H.
Direct
-
Exchange
Private Wires:
YONGE
KIRKLAND LAKE, ONTARIO
NORTH BAY, ONTARIO
HAILEYBURY, ONTARIO
Exchange-—Toronto Stock Exchange
Canadian Stock
ASSOCIATION OF CANADA
Company,
355 St. James Street
Branches in the
STOCK EXCHANGE
THE TORONTO
THE
Nesbitt, Thomson and
ROADHOUSE & CO.
DIXON
W. H.
JACOBS
DOHERTY
JOHN M.
C. M.
JOSEPH
D. G.
ROGERS
WILLIAMS
COLQUHOUN
BANNERMAN
20
THE
Continued
jrom
page
COMMERCIAL and FINANCIAL CHRONICLE
there is still much to be done,
say
19
Central and Investment
Banking
bigger challenges to be faced in
ine
future, greater achievements
10 'be
sought.
Tne short - term
money marxet has made remark¬
able
pi ogress
Unee
In Canada
pected
public in a different form,
i.umeiy, in part by an excess of
in
by
part
vestment dealers in the redistribu¬
pur¬
by funds accruing to
Superannuation Fund, and in
b/ other capital receipts of
the
part
the
government.
net
character
ment
lion
as
of
in
of
tion
marketable
government
securities was very notable. This
v/as
also a period in which life
insurance companies were further
reducing their holdings of govern¬
the
increase
in
total
holdings of government securities
by the Bank of Canada was not
large, there was a big change in
chiefly
in
over expen¬
part
the
Bonds
absorbing
a
substantial amount of personal
savings, the achievement of in¬
chase of government annuities, in
While
Savings
public
gjvernment revenues
ditures,
ada
of
holdings,
our
result of the
a
retire¬
holding of $675 mil¬
Treasury Notes.
our
6-month
ment
bonds
their
mortgage
investments
in
order
as
the
banks. Non-resident
also
increase
loans and other
i.e., for the same
—
general purpose
were
to
on
selling
bonds in Canada.
chartered
the whoie
government
Finally, outside
the field of Government
of
Can¬
ada
The government effected this re¬
tirement by increasing the Treas¬
securities, it is no news to
yourselves that Canadian invest¬
Bill issue at intervals during
the period, by a total amount of
$700 million, of which the Bank
ment
took
$190 million, the
chartered banks $330 million, and
the general public $180 million.
In
the
category of government
bonds, as distinct from Treasury
Bills
and
Bank
of Canada
Treasury
and
the
in
improve
years
in the other
as
ex¬
aneau.
areas
of in¬
tion, of transfer, of servicing the
mortgage, cost of money, and cost
of servicing the
familiar
I believe there is
intermediate
their
suing
cured
as
arbitraging
maturity
one
against
Again, tne saie of equity-
participation
prise
in Canadian enter¬
Canadian investors, al¬
to
though
you
stonewall
field
to
time
against the
up
the
of
life
will offer
companies,
ing
come
of
activity
last
increas¬
for
a
long
was
Progress
come.
noticeable
insurance
an
in
both
year,
issues
new
of
think, that
and
common
preferred stocks and of re-distri¬
bution of
Notes, the
$565 mil¬
ers
in
mind
the sale of the
new
the
of money
I
was,
great
already in existence,
think, carried out with
lead
and played a prominent role
by aiding with temporary financ¬
ing, and I am sure they will be
responsive to further opportuni¬
ties of the
success.
Short-Term
would
from
would
the
broad
a
be
secondary market
only a marked im¬
not
provement in the investment qual¬
ity
of mortgages
because
the
of
encour¬
without
resources
infla¬
price level, and to
the
in
sist
of
nrocesses
as¬
economic
growth on the highest sustainable
level, which means, if at all possi¬
ble, stable growth solidly based.
No
recognizes
one
than
central
a
limits
are
which
develop¬
policy
monetary
its influence to
tion cf the
mortgage
few own¬
advantages
accrue
ment of
increased
the
to
more
banker
clearlv
that
there
effectiveness
oc
monetary policy. It is by no means
only factor influencing eco¬
nomic activity. The non-monetary
the
fields of domestic
fiscal
policy, including
policy and the various
nomic
activities
all
of
liquidity, but also a
government, are
closer integration of mortgage in¬
importance and
terest
After having paid you all these
of
eco¬
levels
lowering of barriers which
deny
access
series of Can-
compliments, I had better
go on to
expansion of the
investment
opment of
dealers
mortgages
Charles H. Burgess & Co.
on
tities.
the
is
relation
in
activities
of
devel¬
residential
to
proper -
securities,
dealers have long recognized their
responsibility to develop and im¬
secondary
markets,
the
prove
after-issue
or
between-issues
mar¬
once
are
this
for
the
SINCE
lenders
way
DEALERS IN INVESTMENT SECURITIES
can
liquid,
1909
alike.
Only
that
is,
provided
which sellers
buyers
Members
Toronto
Stock
any
Dealers'
Assn.
of
Bay St., Toronto
•
at
time
with
a
find
can
without
too
change in value resulting
from the activity of any one
buyer
Exchange
Investment
this
investments be rendered
market in
great
in
seller.
or
Canada
a
The
active and progressive
talked
tral
a
bank
is
of
have
tried
degree
to
of
a
very
noticeable gap in our market ap¬
paratus. We do not yet have in
con¬
bring out to
central
the
tirely
banking function.
which
and
the
yond
There is
one
on
through
smoothly
a
successful if
car¬
well-established,
functioning
mone¬
of action.
its
in
proper
That is that by its na¬
be
must
general
in
its
than
rather
effects,
na¬
regional in its
application, and that its economic
impact
is
through
of
its
necessity
influence
indirect,
on
money
and credit and the total financial
financial environment,
structure designed to do the best
other point I should
sphere
policy
tional rather
more
overall
tary
ment
operations
of
like to make in relation to
specific
own
reasons
wholly be¬
influence
than
its
in
monetary factors.
all these matters affecting invest¬
that
en¬
taken
for
sometimes
are
it
by saying that the central bank
alike
consumers
ture
believes
pol¬
finally there
decisions
numerous
The interest of the central bank in
banking might be summed
domestic
overcome. And
which
banking function and
the investment
im¬
em¬
the economic sphere by producers
some
relationship between
ried
means
of direct
dealers, and 1
the
will be the
considering ways and
filling what has become
are
de¬
countries
can have a very great
fluctuations
several
cen¬
large
icy could at best mitigate, not
are
ones.
control,
our
in
ployment and prices, and produce
as success¬
about
to investment
now
Branch—Brantford, Ontario
highest
pact on Canadian production,
be
interested, including
number which
cern
investment dealers, the real arch¬
itects of our capital market, are
EMpire 4-8471
operate
abroad,
in
invest¬
specific matters in which the
up
more
velopments
prob¬
it should
smaller
the larger
as
have
I
ket, in the interest of borrowers
and
entirely beyond
now
mar¬
field
a
technical
any
ment houses to
fully
is
overcome,
possible
secondary market for
a
to the mortgage
ket to various classes of investors.
lems
Another field in which the pub¬
interest would be served by
the
rates
Incidentally,
lic
of
market
sort.
same
Secondary Mortgage Market
Money Market
an
255
ductive
or
holders, thus
impersonal ownership
the
that
use
the full employment of pro¬
age
with very small costs of operation.
Among
preamble of the Bank of
or
into useful investment, and
facilitating the most efficient
Dealers
effect
amble,
should
debenture
or
combining
which,
Having
a
objective of any cen¬
it is written
Canada Act, though I am not us¬
ing the exact words of that pre¬
images—de¬
a
the
is
into the
goodwill might result from
occasional
foreclosure
action
might be interested in
corporation with only
and
may have more
within the general
effect on the overall situation than
pattern because of the
monetary policy
under
certain
greater ease of trading from one
conditions. I have said nothing to¬
kind
of
investment to
another,
day about international influences
consequent upon the elimination although we all know that events
use
holdings, so that its total
portfolio, as already stated, rose
by about $80 million.
Investment
se¬
opprobrium
some
Policy
probably
raised
holdings up for liquida¬
money
in the period in tion, I know that the members of
question than in any other 12 tne investment Dealers' Associa¬
months, on behalf of Canadian tion of Canada are as keen as
provinces, municipalities and cor¬ anyone to maintain and increase
porations. The job of encouraging the Canadian share. This is a field
and mobilizing the savings of the in which several of the chartered
Canadian people, and of directing banks have on occasion given a
more
of
added
lion to its
Commends
It
of
:ess
very
particularly
tne case of ''oiue-cnip'
stocxs
long standing. In the case or
of
tors who
Bank
tral bank today, and
which could be closely
broadly distributed ac¬
to circumstances,
inves¬
fear, rather unnecessarily
or
cording
I
rnoi
econ¬
Limitations
place
is¬
a
corporations
debentures
N.n./i.
as
bentures
unoiner.
Central
by mortgages—conventional
wen
held
banking, there is need
capital, for one thing, for
own
Canadian
This is
investment
gestion.
for
the
sustain.
omy can
I will only make one sug¬
vestment
carrying or larger positions,
and
of
improved
facilities
for
for
dealers.
of more
tne
investor.
ground
est level that
them
ury
of Canada
dealers
Here,
be
snould
expand
to
Lu^ctantially
cral
loathe last two or
but
years,
Thursday, June 28, 1956
directly
rather
than
acting
particular kind
upon any
Canada broad smoothly-function¬
possible job of bringing together
of
ing
saving and investment at the high¬
object of monetary policy to exert
secondary market in mort¬
gages. The entry of the chartered
A
into the field of making
servicing insured residential
mortgages
under
the
National
Housing Act offers the possibility
of a large and fairly continuous
supply of such mortgages for re¬
monthly
our
and
Investors' Digest
is available
on
request
sale to other investors.
with
WILLS,' BICKLE
COMPANY
MEMBERS
THE
THE
i
OP
TORONTO STOCK
EXCHANGE
INVESTMENT DEALERS* ASSOCIATION OF CANADA
44 King Street West
EMpire 8-3081
Toronto
1
their
OR
mortgages
—
on
located in any area or
whole country —
With
ment
for
Government, Municipal
ANDERSON & COMPANY
'
LIMITED
rated
TORONTO
tion
A. L.
Anderson
A. L. Howard
■
■
B. H. Mason
is
a
area.
The Investment Dealers' Association
of Canada
'
On
i.
P. S.
need
Crysdale
expansion.
own
to
receive the
It
supplies up-to-the-minute
facts
on
finished
Canadian
raw
materials,
products, and sales
possibilities—new industrial
developments—current commercial
trends. Your letterhead
We do
not
request
will
bring this Letter to you
regularly. Write to our Bqsiness
Development Division, 25 King
advise
regarding specula¬
tive securities.
Street. W., Toronto 1, Canada.
THE CANADIAN BANK OF COMMERCE
Head Office—Toronto
the
for
involved
technical
more
and
between them
r
invited
from
broader market—an investor need
not
confine himself to his own
Members
are
monthly Commercial Letter of
as
thes investment func¬
great help in finding a
and the opportunities it
economic
The Canadian Bank of Commerce.
market
servicing function, in the case of
insured mortgages, can be sepa¬
recent
You
a
pension funds, but there
is an obvious need for
comprehen¬
sive facilities to promote broader
distribution.
The fact that the
speed and
progress,
buyers and sellers alike. Some
such
extent of
the
provides for their
large parcels of insured mortgages
have already been sold direct
by
the original lenders to investors
Corporation Securities
are
at
Canada's
with good
a
IN
amazed
properties
throughout
bankers to make
SELLING
Visiting U. S. executives
supply of merchandise
available, it is up to the invest¬
t
is
CANADA?
spread of risk, or what small risk
is left after the 98%
insurance
feature is taken into account.
and
It
BUYING
ANYWHERE
branch
system, can initiate and service a
much larger volume of
mortgage
loans than they themselves would
normally wish or be able to add
to their portfolios.
They can put
together a representative bundle
of
yOU
ARE
The banks,
widespread
the
Canadian
activity.
banks
Copy of
&
economic
side,
there
is
study of the costs
of
—
the
costs
relationship
of
acquisi¬
New York
Seattle
•
Resident
and
more
•
San Francisco • Los
Angeles
Portland, Ore.
Representative—Chicago
than 700 Canadian Branches
the
21
COMMERCIAL and FINANCIAL
THE
Convention Number
CHRONICLE
?
"'v P
-V/ **.
>,
,
k
*HM
>
>'
>
.
f-
*55-,
V>
J fei'
Mrs. R. W.
Mr. &
Wadds, McLeod, Young, Weir & Company Limited,
Corpn. Ltd., Montreal; Mr. & Mrs. F. Whittan, C.
Dominion Securities
Mr. &
Toronto; Mr. & Mrs. P. N. Hart,
J. Hodgson & Co., Ltd., Montreal
Bankers Bond
Mrs. Lloyd G. Millson,
Corporation Limited, Toronto; Mr. & Mrs.
Limited, Toronto
consider
to
Monetary policy as such oper¬ Continued from page 6
gradually and in the
indirectly without specific
most flexible manner, preferably ates
direct controls.
Direct controls,
by continuous small adjustments,
whether of fields of credit or of
rather
than
abrupt
drastic
production and distribution, may
changes; it must be ready at all
under some circumstances appear
times to adapt to actual conditions
rather than adhere to
precon¬ temporarily necessary in the pub¬
lic interest, but monetary policy
ceived ideas.
in the strict sense of the term is for relative efficiency. An increas¬
One factor which I need hardly
within the limits of its effective¬ ing reliance of the Canadian econ¬
emphasize in talking to invest¬
omy on petroleum is certain.
ment
dealers
is that effective ness, the alternative to direct
free econ¬
omy would be completely incom¬
patible with rigidity of interest
Variations in interest rates,
especially those applying on mar¬
ketable securities, are evidence of further
changing conditions in the supply
of and demand for money and
to be preferred to
in
the price of
say,
and
living and the
minimizing
unem¬
ployment and facilitating
healthy
whole.
influence
in
and
nomic
be an important
can
possible
highest
fluctuations
costs of production of our econ¬
omy,
an
of
With
us
growth of the economy as a
to
process,
here today, are
you
objective
this
of
of
all
contributing
and
share
the
degree of
be from time
responsibility for the
progress
to
that
may
facing
height of folly
Continued
J. B. White 6-
this
means
on page
Hemisphere for its petroleum
TORONTO
THE
Co.
OF
MEMBERS
EXCHANGE
STOCK
supplies.
that
she
every
must
money
are so enormous
source
320
8-340t
303
SUITE
advantage of
take
EM.
TELEPHONE
STREET
BAY
availabe to
TORONTO 1.
her, domestic or foreign. This
again calls for bigness in planning.
And I will have more to say
BRANCH
OFFICE
—
CANADA
SUDBURY,
ONT.
about it.
R.
J.
time achieved.
that
seen
parallel maximum energy con¬
sumption.
It also means maxi-
an
creasingly dependent on the East¬
ern
have
We
remarks.
surely it is the
important
possible use
of capital
from all sources to
create the
greatest p o s s i b 1 e
growth in real wealth per capita.
task of this size
Hemisphere is becoming in¬
ern
concerned in the petroleum growth
are
financial
overall
degree
social welfare.
occupies
a
the
thing is the greatest
and concluding
Canadian petroleum
therefore has particular strategic
eco¬ significance. The capital require¬
All ments to assure Canada's potential
development of the
agement and
goods, that is to those who
in the cost of
is
economic freedom and the encour¬
credit, and a necessary and desir¬
able consequence of such changes.
Fluctuations in the price of money
are
today
developing
instrument for the buttressing
Canada
the main
to
part of my
important
ment of freedom in the economic
position in the free world's oil
sphere. Indeed, the whole of our picture. She has great reserves
financial structure in this country
capable of development and this
as it has developed and as it is
in a situation on which the West¬
monetary policy in a
rates.
instru¬
It is an essential
me
for
capital
Surely
source?
Long Range Planning
Canadian Oil
restraint on the
from any
any
of
flow
free
its influence
controls.
Bob Gouinlock,
Bell, Gouinlock & Company
B.
Monetary Depreciation of Income
of the
One
J.
HOLMES
WHITE
K.
A.
G.
DEAN
V.
ELLIS
serious prob¬
oil's
lems, which it shares
with indus¬
generally (but feels more
acutely than most because of its
diversification) is the deprecia¬
try
'
V;:
v-.
\
tion of
sdllen t&mited
Members
The
Stock Exchange
Toronto
The Montreal Stock
Exchange
The Canadian Stock
Exchange
income.
of Canada
*
TORONTO, CANADA
I
London, England
Offices: Kingston, Ontario
VICE-PRESIDENT
PRESIDENT
George D. Adams
Bruce A. Norris
DIRECTORS
P. K. Hanley,
J. V. Brooks,
G. M. Mitchiner,
Douglas McVittie, Philip H.
Christopher Wahlroth, Jr.,
Hawker,
Arthur W. Strickland,
the
during
tion and
F. A. Rose,
Mothersill,
Philip Charles Waite,
Sherman T. Hill
Investment
relation to
SUITE 503
320 BAY STREET
h.
d'alton
McCarthy
kenneth b. andras
hetherington
A. F.
Francis & Company
LIMITED
Members:
Montreal Stock Exchange
gravity of this in
Investment Dealers'
the total bill we have
Association of Canada
It is
of
new
today's dollars. The con¬
struction content of this bill is
presently inflating at the rate of
one-half
of
one
percent
per
month. Think of that in terms of
range
planning.
It
INVESTMENT
SECURITIES
invest¬
ment in
long
TORONTO 1
Telephone EMpire 3-9151
william hatch
sidney c.
generally estimated
the total bill facing the oil in¬
dustry in Canada over the next
decade is some $8 billion (eight
to face.
Stock Exchange
Dealers* Association of Canada
expansion.
Consider the
thousand million)
Richard A.
amortiza¬
life of capital
equipment, pay no regard to the
declining value of money. It thus
becomes necessary to supplement
these with additional provisions
from taxed profits.
These provi¬
sions also, however, are subject
to a steady decline in their real
purchasing power. So-called prof¬
its must therefore make good the
loss in money values in respect
of past investment, as well
as
providing capital for moderniza¬
tion
Telephone: Empire 8-4731
Branch
Members:
The Toronto
and corre¬
assets. Tax allowances,
sponding provisions for
200 BAY STREET
ANDRAS, HATCH 6- McCARTHY
funds, simultaneously reduces the
real value of past accumulations,
intended to cover the renewal of
Dealers' Association
The Investment
our
Depreciation of money has farreaching repercussions on the
pace of economic progress.
It is
particularly important to oil com¬
panies which typically have con¬
tinuing high capital requirements.
Inflation, as well as gnawing into
profits and thus diminishing the
principal source of new capital
brings
66
King Street
West,
TORONTO
36 James
Street South,
HAMILTON
22
Mr. &
Mrs. W. B. Robinson, H. C. Flood & Co., Limited, Montreal; Mr. &
W. C. Pitfield & Company, Ltd., Montreal
Continued
jrom
page
David K. Drury, R. D. Steers and Company, Ottawa; Mr. & Mrs. Robert Ouimet, Dawson, Hannaford
Limited, Montreal; Mr. and Mrs. Eric J. Wright, Geoffrion, Robert Sl Gelinas, Inc., Montreal
Mrs. E. F. Clarke Kinnear,
Should
21
Welcome
Nothing
in
Foreign
view
my
serious
more
the
task facing
makes it difficult to
employment and maximum
management for Canadians — are
Canadians—maxi¬
employment and maximum
jobs
mum
mum
for
impossible
management.
looking at
billion
years
in
total bill of $8
the oil industry in 10
for
and
which
a
sciences.
In
will
provide oppor¬
tunities for Canadians, one sees
the following picture.
A classic
division of capital investment by
the oil industry is:
Exploration & Production, 75
Refining and Chemical
I
what
oil
by
see
and
women
we
find
is not
a
applied
young
realize
the
late.
too
in
which
the
all
too far from realize
today. If
we
in
surely
succeed
Canada
limit
this—and
those
aim—how
our
opportunities
de¬
on
tails of the landscape.
And that is
so
this
about
I feel
strongly
when I
that
subject
talk about it I want to
use
terms
which will shock my
hearers into
sitting up and paying more at¬
tention than I usually am lucky
enough to get.
I want to say
something like this—that talk of
restricting foreign capital is to
my mind not merely smallness in
planning,
but
literally
"small
tOWn."
''
:
this
can
we
by
re¬
Instead
of
crying about foreign
investment
in
oil
the
business
(and let's face it—foreign invest¬
has
ment
been
willing to take
risks in the past which we Cana¬
dians
reluctant
were
should
first
in order.
I
put
to
our
appeal for
take) we
house
own
no
the investment dollar available
stricting the flow of capital into
to
us,
from.
country?
no
matter where it
But
I
government to
on
our
It
remove
comes
to
our
restraints
Canadian investment
own
dollar.
also
appeal
United
States
tax
treatment
of oilfield depletion is
substantially more realistic than
that prevailing in Canada.
And
because a far-sighted government
in
to
be
is only recently
that a
many-years-old tax deterrent
than
more
Hart
&
inc.
has
been
ment
Members of The Investment Dealers'
and
moved.
Association of Canada
5%
Canadian
recognized
seems
Every
domestic
by
at home.
occurred
That
ernment
can
United
States
company
tariff
States
oil
and
—
1203
Phillips Square
company
charging
W.
50 Jean Talon West
-
SHERBROOKE
—
TROIS-RIVIERES
—
.QUEBEC
—
SOREL
&
Hart
Members: Montreal Stock
Exchange
the
which you are
Toronto Stock
Threshold of Industrial
Development
Canada stands today,
conse¬
on
threshold
a
The Keystone
United
did
go into detail at your an¬
meeting two years ago.
I
it in general today only
to explain how thinking Canadian
certainly in the first half of that
financed by foreign, and
especially British, capital. I lived
era, was
as a
Britisher in the United States
for
many
ST.
JOHNS, P. Q.
—
—
THETFORD MINES
I
years.
nual
the United States.
heard
that
any
feared
such
domination
oilmen,
who
trying
are
plan
to
sult
of
foreign
SHERBROOKE
—
CHICOUTIMI
—
MIAMI BEACH
capital.
positive
The
approach is to remove the deter¬
rents
Canadian
on
capital.
The
in
the
He
country.
from
velop
ly has all too tempting
half
to
appeal
an
prejudice—is to shut the other
fellow
re¬
was
use
his
of
will accept capital
we
to
sources
help
de¬
us
country over the great
our
century that I
am
lies
sure
ahead of us, I predict we will be
of capi¬
predominant exporter
a
out.
If
all
negative one—which unfortunate¬
development
tal to other countries by the year
Oilmen Are Free Traders
So
I
am
Canadian
one
I know)
many
come!"
the
to
who
says—"Wel¬
dollar
that
offers
to
help
no
matter where that dollar
develop
us
country,
our
comes
the
other foot.
Already
ada about half of the total foreign
investment
as
in
Canada
foreign
our
creases
say—"Come
velop
sell
our
own
our
say
in
this.
and
country.
country
goods
countrymen.
As
■
to
an
I would
help
us
Then
de¬
in
which
hibit
as
—
we
the
your
go
to
tality which
us
Canadians
fellow-
investor in
us
others
ment
STOCK
invest
some
pay
BROKERS
Members
Stock
Exchange
Stock
Exchange
Investment
Dealers'
Association
of
Canada
,t
437
St. James St. W.
•
I
of
Montreal
not
town
my
ex¬
men¬
fellow-
exhibit towards
us
investing in
Montreal
will
small
BOND
and
in¬
—
foreign countries
today
who
of
increase it will
same
help
and
And
now.
investment
trust that those
"We don't want
on
have
we
invested in countries outside Can¬
from. Rather than say to the for¬
—
fact will be
2000. The shoe in
(one of
GRAHAM & CO.
,
ever
a
it
capital.
Canadian
State
as
delighted to accept it and to
foreign
Name
City
never
of
describing
Keystone Fund of Canada, Ltd.
Addreu
Indeed I
American
long range, approach this matter
prospectus
DRUMMONDVILLE
heard
never
mention
Company
me
de¬
velopment similar to that of the
TAX BENEFITS
Congress Street, Boston 9, Mass.
Please send
I believe,
industrial
of
under Canadian Laws
50
in
that this foreign investment ever
led to any foreign domination of
I
CAPITAL GROWTH
and certain
the
TROIS-RIVIERES
and
investing."
Offices:
11 King Street West, Toronto
—
fully managed Canadian
Company seeking
long-term
Exchange
40 Exchange Place— 65 West 44th
St., New York City
QUEBEC
against
need
Investment
Head Office: 230 Notre Dame St.
W., Montreal
Branch
tariff
you
ofCanada,Ktcl.
A
Canadian Stock Exchange
no
our
States some 50 years ago.
Much of that great growth which
the
United
States
experienced,
your
Keystone Fund
Savard
put
quently the Canadian investor in
oil
on
a
par
with the United
States investor, is by placing the
Canadian tax treatment of deple¬
tion on a par with the United
States. That would be bigness in
planning.
Time does not permit me to go
you," I would
—W—
MONTREAL
We
country work for
of
which
eign investor
230 Notre Dame St.
an
the for¬
"Oilmen are by
oil coming into
your
removal
our
As
to
say
traders.
your
oil
trade."
is
with the United
company,
on
country. In
put the Canadian oil
company on a par
free
nature
bigness in tax planning. A simple
step by which the Canadian Gov¬
capital
drilling for oil is at a serious
disadvantage taxwise against a
T'~ '
oilman,
eign investor
foreign exploration for oil
treated taxwise as though
it had
govern¬
likely to be re¬
oilman knows a
Canadian
healthy
I would
our
allows
States
vitally interested in
are
country's
the
United
against forming subsidiaries with
Savard
you
the
the
cost of
restraint
on
our
The
maxi¬
the
This
into these tax auestions in detail.
r'V*
Improve Our Tax Laws
from
in
career
concentrate
to
just the danger.
Canadians—
guidance
a
tends
One
it totally.
I
they
be
—
is
sciences
must
planning big enough.
things I have advocated
it
proper
again
once
sphere where
the
opportunities
trained in the
And
face
these three—will realize the great
industry's activities is carried
men
that
will
before
believe
from the foregoing
applied sciences.
education
with
preponderant share of the
a
institutions
government, industry
danger
1.6
You will
believe
and
6.2
Other
educational
responsibility for bigness
long range planning.
in
6.6
Marketing
At the moment there is
serious
a
10.6
Pipe Lines and Marine,.,.
pro¬
numbers
this, government, industry and
our
%
necessary
to fear she may not do so.
reason
the fields of endeavor
it
Canada
of
professional personnel—especially
people qualified in the applied
Shortage of Skilled Help
In
unless
the
duces
because
of the
see
operations
is
nation. But
vista
our
magnitude
very
drilling
its United States income.
planning in this mat¬
foreign capital. I have tried
to show you the magnitude of the
energy
Canadian
to
than
Canada
for
its
be
ter of
Canadian Oil
mum
Capital
could
smallness in
Long Range Planning ioi
Thursday, June 28, 1956
FINANCIAL CHRONICLE
THE COMMERCIAL and
22
the
us.
compli¬
Convention Number
Mr.
&
Mrs. W.
Greenshields
&
Continued
G.
THE
COMMERCIAL and
Pepali, Bell, Gouinlock & Company, Limited, Montreal; Mr. & Mrs. F. E. Griffin,
Montreal; Mr. & Mrs. Joseph Pope, Burns Bros. & Denton, Limited, Toronto
&
Mrs.
Stanley
Nixon,
page
9
sonable
Keeping Canada's Air Transport
•
."v." I
tical about it, at this time.
We
of
Sound
Commercial
Problem
We
believe, and I think a great
many
in the industry feel the
same way, that it is going to be a
technically difficult problem to
push
a
civil
aircraft
through
MACH 1,
complications
are
very
serious.
that it is only
I should mention
recently that mili¬
tary aircraft in normal level flight
have gone through MACH 1 into
the higher speed ranges, and it
would
that
it
is
beyond
to
10
in
consider,
years
—
I
am
we
ward
to
we
possible
us
sound
at
an
economic
Canada
in
of
demand
that
transport
Mr.
&
Mrs. D. H. Ward,
Toronto
over
and, in fact, there are now
60 civil aircraft registered
in this service. The
aircraft
are
rotary-winged
playing an increas¬
developments in these ingly important role in the de¬
our
natural
re¬
insofar as aviation is con¬ velopment of
cerned, are the direct result of sources, and many consider them
indispensable to civil and govern¬
geography.
Looking at civil aviation in this ment use.
Aerial surveying in Canada is
field, it appears reasonable to say
Canadian
complete
or in
The consequent release of radio¬
activity would not differ substan¬
While it is entirely possible this
than
mile
seat
per
the
clusive
never
and
brighter.
the helicopter field,
mand
in
the Northern
this type of
a
phenomenal growth
country
leads
now
the
world in the development of air¬
the de¬
areas
this
borne
for
geological
:
survey
Continued
r\
service increases each
"
equipment
on
page
24
Intercity Securities
Corporation Limited
earliest
type. The latest aircraft we have
ordered, the Douglas DC-8, ex¬
experiencing
there is little doubt that the future
was
In
All these aircraft have cost more
of
in¬
cost
Lock¬
the
ground
the air of such
more
time,
same
aircraft,
aircraft.
effect
on
power
must not overlook
complicated to put
commercial vehicle through the
ance
of
14.
an
prophesying atomic
destruction
type
heed
the
atomic-powered aircraft,
for aircraft
in 1949 my particular
had in operation a sin¬
example,
company
gle
years
equipment, this aircraft cost us
$105,000. Since 1945 my company
has purchased DC-3s, North Stars,
Super-Constellations and the Vis¬
counts, for the specific advantages
each type offered.
We now have
placed orders for long-range jets.
It is not inconceivable to look for¬
the
difficulty in looking
is the financial
aspect of the overall situation. For
10
Exclusive of spares and ground
have another problem.
tially from that following the det¬
onation of a small atomic bomb,
and might make the surrounding
barrier, without disturb¬ area untenable for some lengthy
to passengers,
and at the period.
seem
finitely
a
to
have
beyond
aircraft.
Here
but in
the speed of sound.
The technical
Another
the carrier is concerned.
trying to indicate to you the prob¬
lems of forecasting, beyond that
period—the field of atomic-pow¬
ered
not
Ltd.,
areas,
also
looking
Speed
will
Air Investment Outlay
■
as
atomic
that
aircraft
be in service in the next 15 years.
In Forefront
•
ahead and be prac¬ insofar
years
forecast
to
for civil
power
rea¬
seems
Ltd., Montreal;
Corpn.
year
kind
that it
Corpn.
Securities
the
tances
be said
can
Securities
aviation
supplies in our Northern areas. I
think it is very safe to say that
problem will be overcome, I think
it
only 10
Dominion
Dominion
Mr.
Co. Inc.,
from
23
FINANCIAL CHRONICLE
Members The Investment Dealers' Association
of Canada
of spares,
will cost us in
the neighborhood of $5% million
Telephone EMpire 3-5801
each.
I
think
you
therefore
can
see
other
as
Edmund J. Mc Donnell
Arnold G. Plaxton
Walter F. Wilson
the quandary in which we, as well
Nevin R. Adams
J. E. Grasett
carriers, incidentally, find
in
ourselves
mendous
financing the tre¬
in price which
330 BAY STREET
TORONTO, 1, CANADA
increase
is
due, in the most part, to tech¬
nological progress and basically,
to advances in design.
In fact, I recently overheard one
of the most prominent senior air¬
line executives say he would give
his eye teeth if engineers and de¬
Government and
holiday,
as
financing the new projects is
the major concern to his particu¬
signers would only take
Corporation
a
Securities
lar company,
and it is just as dif¬
find the money—if not
ficult
to
more
so—as
it
is
to
the
obtain
N. L. MacNames & Company
types of aircraft.
new
In
view
what
of
I
have
said,
LIMITED
then, I think I should confine fur¬
ther remarks about the future of
Canada's air transport to
10 years.
In discussing
of
areas
Members
so
of
19 Melinda
the
Investment
Dealers'
Street, Toronto 1
Association
of
Cc^ada
66 King Street West, Hamilton
Telephone JAckson 7-6656
EMpire 4-3343
the future, I think
have to do
we
the next
in three distinct
operation.
They
are
as
follows:
Northern
operations.
Mainline operations.
International
f
operations.
Air Activities in Its Northern
INVESTMENT TYPE
Operations
In the first area,
ern
operations,
such items
I
namely, North¬
would
BONDS &. SHARES
classify
as
*
Charter flying.
Special airlifts—the DEW-Line
and Mid-Canada lifts.
Pitfield's
■
Q
twelve
•
Aerial
Dominion-wide network of wires, reaching the
1
#
areas
key Canadian financial centers, can give you firmer
markets—faster.
spraying—in the timber
J. R. Meggeson & Co,
of New Brunswick.
Aerial
surveys—for the industry
LIMITED
and for the nation.
mining
projects—Labrador
Development of
W. C. Pitfield &
0 Broad
Street, NEW YORK
Co., Inc.
ventures
And
•
Calgary
Vancouver
of
many
other similar
you
BUILDING
ESTABLISHED
1921
types
operation.
As
BANK
TORONTO
new
mining development.
HAnover 2-9250
Montreal • Saint j JTin * Ottawa • Toronto ' Victoria
Cornwall • Winnipeg • Edmonton •
Halifax • Moncton
and
ROYAL
all know, the vast dis¬
MEMBERS:
THE
ALERJ
INVESTMENT DEALERS'
ASSOCIATION OF CANADA
>
V
THE COMMERCIAL and FINANCIAL
24
Eric
Mrs. John S. Dinnick, McLeod, Young, Weir & Company, Limited, Toronto; Mr. & Mrs. R. N.
Steiner, A. E. Ames & Co., Ltd., Toronto; Peter Gooderham, Wills, Bichle & Co., Toronto
Mr.
&
Continued
from
page
Of
23
course,
about the
have
we
DEW
all
D.
B.
read
Mid-Canada
and
Thursday, June 28, 1956
CHRONICLE
a
rapid development in the tech¬
nical aids to navigation over land,
J. R.
Mr. & Mrs.
Montreal
Kippen & Company, Inc., Montreal;
Nesbitt, Thomson and Company, Limited,
Kippen,
in technological improve¬
progress
will
ments
Gale,
be
made
in
aircraft
vicinity of airports. design and construction. We are
attention of many civil carriers It is expected this trend will con¬ already
seeing
these
improve¬
and probably will continue to do tinue, and it would seem that ad¬ ments, at least on paper.
From the inception of aviation
so for years to come.
vantage will have to be taken of
As of January 1956, upwards of these technological improvements until April 1, 1955, all civil air¬
42,000 tons had been moved by which translate themselves into craft on this continent were pow air on the DEW-line alone.
The improved regularities, safety, and ered by one form or another of
ada have been surveyed by air,
wealth of experience gained in the further freedom from dependence the
piston-gasoline engine.
On
plus an additional IV2 million line operation
that
date, the turbo propellerand
maintenance
of upon the weather.
miles flown on mineral and oil
It can be forecast that the cur¬ powered aircraft came into sched¬
multi-engined aircraft under se¬
These
lifts.
Air
the
absorb
now
sea
and in the
Keeping Canada's Air Transport
In Forefront
and
to
techniques.
forecast that
vances
the
reasonable
It is
due
these
to
ad¬
geo-physical industry
in Canada will double in the next
two
years.
emphasize
To
surveys.
Arctic conditions has been of
vere
■
Canadian registered
this
aircraft
are
point,
since
1952
approximately
three million square
operating
on
aerial
miles of Can¬ in countries all
survey
work
the world.
over
value
inestimable
carriers
I
to
this
to
and
civil
our
country.
nothing but an ex¬
tremely bright future for the de¬
velopment of civil aviation on our
see
can
Northern
areas.
1
'
&
ments, it is
a
the future.
Here
Exploration
has
we
have
sound,
record of what
a
which
happened,
cally
think will
we
and
we
on request
and
At
Exchange
40 WALL
Tel:
Dlgby 4-1640
rue
Palais St. James, Monte Carlo, Monaco
Hotel
1956
we
These
process
vicinity
the
Full
im¬
greatly
Jet
by 1965
As I mentioned
augmented.
figures
Carlton, Cannes, France
visibility
than
is
possible.
now
The effect of this development on
do
spectacular development with
spect
to
surveillance
storm
navigational
systems,
re¬
and
well
as
as
The
of rotary-winged air¬
mainline operations is
difficult to predict at the present
craft
use
in
tirpe.
have
not
in¬
that
challenge
in the planned development of air
transportation in Canada.
At the risk of bringing to your
attention things that might hap¬
pen on mainline services in Can¬
ada, I would like to make
followi
following observations: -
the
As
in
pected
the
that
past,
the
it
be
can
most
made
in
ad¬
heli¬
an aircraft capable
operating
economically
and
an adequate margin of safe¬
of
with
use,
has not emerged.
Serious consideration also
be
must
given to the development of
n
Morgan
&
Montreal
Stock
Co.
Exchange
MEMBERS
Canadian Stock Exchange
Standard
Aldred Bldg.
940
507 Place d'Armes
Impro
provements Will Have to Be
been
copter design,
ex¬
dramatic
important
Although
vances
be^ flight control of the aircraft itself. ty for civil
the future offers quite a
Telex: NY 326
de la Cite, Geneva, Switzerland
own
our
clude "through" passengers.
I think you.will recognize
*M6icad"
STREET, NEW YORK 5
7, Avenue George V, Paris, France
1,
ana
in
be
Airborne radar will continue its
example
an
approxi¬
mately 800,000 passengers — and
by "process," I mean emplane and
deplane.
In 1965, we anticipate
that 1,700,000 passengers will be
processed—a
growth
of
about
CO., INC.
I Clothe
as
point, in
will
we
112%.
a
and
aids
will
fore¬ flight regularity naturally should
of what be marked.
statistics for the moment:
that
lieve
&out vfi'ic/cet
airports
have
dealing only with
company
u
statisti¬
is
happen.
Taking Toronto
Members New York Stock
of
previously, it ra
Automatic approach aids should safe to forecast that the full jet
mainline develop¬ make it possible for civil aircraft engine will come into extensive
little easier to define to operate safely under far worse use on the longer national routes
conditions of cloud
ceiling and during the next 10 years.
casts of the next 10 years
Limited
DE PONTET &
navigational
Inv discussing
Bay Mining
Report available
the
proved
Mainline Activities
Green
It is
program of replacement of uled use in North America.
existing Canadian system of safe to predict this type of power
will rapidly replace the pistonmedium-frequency of radio ranges
will be carried to its logical con¬ type
engine over many routes
clusions, and that installations of during the next 10 years.
rent
Electric
Bldg.
Cote de Liesse Rd.
Tel. Riverside 8-7391
Tel. PLateau 3971
Made
New
McDOUGALL & CHRISTMAS
runways
in size. In
.
'•
.
Montreal
J.'.-
Stock
'
• ••
.
•
■
Exchange
^
Canadian Stock Exchange
The Investment Dealers' Association of Canada
'
have
to
be
some
cases
need
to be
existing
runways
problem
of
congestion
acute.
Measures
must
be
taken
growing volume of civil avia¬
tion operations.
New and larger
terminal facili¬
provided at the ma¬
jority of Canadian airports. These
should
Private
Wire
to
Toronto
Morgan Ostiguy & Hudon Ltd.
Members Investment Dealers' Association
military and lighter aircraft in
the
ties must be
Tel. CEntral 2-7321
Direct
which will permit the segregation
of
Branch: 14 Metcalfe Street, OTTAWA, Ont.
MONTREAL, CANADA
at
for the creation of satellite fields
Tel. IIA 3261
Jean P. Ostiguy
built in their entirety.
airports is becoming increasingly
Montreal
O.B.E., M.C.
Guy Hudon
considerable
The
520 St. Francois Xavier Street
Col. W. E. Morgan,
David Clark
at the larger
will
strengthening
to bear the weight of the new and
heavier
aircraft
types and,
in
other cases, new airports will have
airports,
Members;
I
will
built, and at some airports, present
runways will have to be increased
include
modation for the
sengers,
for
adequate
accom¬
handling of pas¬
mail and cargo
as
well as
ground transportation.
The past ten years have shown
507 Place d'Armes
Telephone PLateau 8623
MONTREAL, CANADA
of Canada
an
Mrs. George
entirely
Ross; Jack Kingsmill, Investment Dealers' Association of Canada,
Royal Securities Corporation, Limited, St. John, N. B.
type of verticaland recently those
new
thrust aircraft,
of you
who read "Time" magazine,
will have noticed some discussion
of
will
transport
ture
is also
study.
are
of
nature
which
freight in the fu¬
matter of intensive
a
Whether
more
aircraft
cargo
and
mail
economically carried as
part of the payload on a passen¬
ger
aircraft,
designed
cific
or
or
in aircraft either
modified for that spe¬
purpose,
depends
upon
the
the
of item
volume
traffic and passenger traffic
on any specific route.
At the present time, with a few
exceptions
this matter.
The
of
relationship
current
use
all-cargo aircraft
are
adaptations
basic passenger
Harry G. Herman, A. E. Ames & Co., Ltd., Calgary; Cam Lipsit, A. E. Ames &
A. E. Ames & Co., Ltd., Toronto; W. R. Taprell, Carlile & McCarthy,
Toronto; George Ross,
cargo
R. B. West,
those
all
to
present
In
we
—
Association,
Transport
rise.
to
passing, I would like to make
International Air
reference to the
anticipate the price of labor will
continue
25
FINANCIAL CHRONICLE
THE COMMERCIAL and
Convention Number
which
of
will have heard.
very wide-spread or¬
most of you
in
it is hoped
and expected that other costs will
of
decrease.
ganization with headquarters, in¬
cidentally, in Montreal, and is an
association of all the major inter¬
aircraft, and it is
other hand,
On the
We
that
the fact
of
aware
are
This is
a
Co., Ltd., Toronto;
Ltd., Calgary, Alta.
by air between the principal cities
of the world, on a standard way¬
bill or ticket at rates using easily
determined combinations of fares.
The association is not a ratemaking
group,
however—it is
ernments
of
the member
carriers
installed air¬
national carriers.
->
must approve resolutions agreed
but it would
As a result of the activities of
be
reasonable, from
what we
at any general meeting of IATA
this association, and with the co¬
know of the future, to expect the
Consumer Rate, Labor and Total
prior to their becoming effective.
cost per seat mile or per available operation of the airlines, it is now
At the present time, there is
Unit Costs
ton-mile, to decrease slightly as possible to ship by air between
aircraft speeds increase, provid¬
quite a substantial move afoot to
With respect to the cost of air
all
the
principal cities of the
ing the rise in labor costs does
Continued on page 26
transportation—a very important not offset the effect of the in¬ world, and to transport passengers
not
this
unlikely
for
continue
some
will
condition
time
to
outlay
capital
craft
per
will rise,
seat
come.
creased
speed.
Weighing - the
would
which
factors
cost
affect future
to
seem
trends, it would seem reasonable
DAWSON, HANNAFORD LIMITED
Members Investment Dealers' Association
Place d'Armes
507
50
Montreal
■
of Canada
King Street West
Toronto
v
EMpire 6-9271
Marquette 2385
forecast
to
direct
indirect
and
cost per
unit of air transportation
provided. This being so, it would
also be reasonable to forecast that
the
the
to
cost
Underwriters and Distributors
air
of
consumer
services should decrease over the
10 years.
next
Quebec Municipal, Religious
International Operations
In
Government, Provincial, Municipal and
riers
DAWSON HANNAFORD & CO. LTD.
Canadian Stock Exchanges
mentioning
briefly
tional
Corporation Securities
Members Montreal, Toronto and
downward tendency
a
the
both
in
Underwriters and Distributors
operations,
serve
now
and
interna¬
Corporate Securities
Canadian car¬
South America,
Mexico, West Indies, Bermuda, the
United
Kingdom,
France,
Ger¬
many and Holland.
As
well, a Canadian carrier
Australia, New Zealand,
Honolulu, and in addition, Hong
serves
RENE T. LECLERC
Kong and Japan.
DAWSON, HANNAFORD INC.
25
Broad
New York
the
In
to
next
10
years,
will
there
me
be
it seems
further
Incorporec
ex¬
Street
pansion of Canadian international
4, N. Y.
services, but, of course extension
depends to
BOwling Green 9-5177
132
St. James
Street West
MONTREAL
great extent on ar¬
a
made
rangements
between
gov¬
ernments.
International air routes require
what is called
to
ment
be
"bilateral" agree¬
a
negotiated
between
governments, and these are usu¬
ally
settled
on
a
quid
quo
pro
INVESTMENT IN CANADA
basis.
.
Flood & Company
Members
CANADIAN STOCK EXCHANGE
Insofar
tions
as
international negotia¬
graphically
TORONTO STOCK EXCHANGE
the
Canada
concerned,
are
particularly
MONTREAL STOCK EXCHANGE
well
situated,
speaking.
By
is
geo¬
flying
polar, or sub-polar routes, the
foreign carrier is able to shorten,
distances
is
H.C. Flood &? Co. Limited
required
if
these
and
dif¬
a
route,
or
fair
number of
considering
are
offer in the
field of investment
glad to send you a
outstanding Canadian
equities
Canadian natural resource
—
selected list
also a picked list of
stocks.
Enquiries invited
car¬
such
routes. My point
a
is: if
tion
in
a
KIPPEN & COMPANY, Inc.
Members
607
Investment
Dealers' Association of Canada
St. James Street West,
Montreal
to believe it will—this na¬
reason
to
refuelling purposes.
this trend continues—and there is
PLateau'4871
of
much
We shall be
for other
than
riers
James Street, West, Montreal
has
aircraft fly
land,
Canada
Today,
ASSOCIATION OF CANADA
points in
over
INVESTMENT SECURITIES
MEMBER OF INVESTMENT DEALERS'
between
Canada
securities.
countries—but-^ agreement
ferent
360 St.
a
rate-agreeing group, but all gov¬
will
be, and in fact is now,
sound
insofar
UNiversity 6-2463
as
concerned.
bargaining
position
international routes
are
Direct Private
Wire between Montreal,
Toronto
26
THE COMMERCIAL and
FINANCIAL CHRONICLE
Thursday, June 28, 1956
mm
4'
I.
A.
Martin, Royal Securities Corporation, Limited, Montreal; Mr. & Mrs. Hugh A. Benham, Bank of
Canada, Ottawa; Mr. & Mrs. George Stewart, Royal Securities Corporation, Limited, Toronto
Continued
from
I
25
page
sit
of
third
carriage
North
of
type
class
or
persons
on
the
Atlantic
The way things are shaping up
it seem that within the
makes
next few
years
ward to
Canada
can
look for¬
12
I
give
would forecast that the rates
Tourist-class
North
Atlantic
competitive,
as
lar
is
outlay
service
on
as
basis
next
of
the
topic
as¬
attempted to
idea of the outlook
10
sketchy
years,
But what
be
6
does all this
mean
How
Toronto
Halifax
and
C.
affected?
concern
our
hours
10
Vancouver
to
C.
be
4
will
minutes, allow-
Dealers'
Association
V.
A.
B.
to
It is
pect
Toronto,
bed
own
quite within
that,
of
shop
to
the
dial
now
Canada
LEDAIN
B.
warehousing,
geared accordingly,
shop
etc.,
arrangements,
them
within
ceive
in
customer in
a
Vancouver
his
order
from
manufacturer within
could
installations
in
strategic
will travel
long distance call to its destina¬
tion
automatically and at high
speed. Second, a network of al¬
entirely over the lines
of Canadian telephone companies.
OF
which
will
direct
re¬
507 Place d'Armes
•
YORK
MONTREAL
is no overnight ternate routes flexible enough to
stage is operator carry the call there without de¬
distance dialing, and that is al¬ lay.
We have opened automatic
ready well advanced with close to long distance switching centres in
half the long distance calls made the past 12 months in both To¬
in
first
Canada
dialed direct by
The first customer
now
operator.
ronto and Montreal.
Similar
are
radio
relay system will form the
main
artery of the Canadian long
distance network, and it will con¬
with
nect
the
extensive
network
(jrant Johnston&(o.
Limited
MEMBERS
MONTREAL
STOCK
EXCHANGE,
MEMBERS
CANADIAN
STOCK
EXCHANGE
MEMBERS
hours of
jet
which is
age
INVESTMENT
DEALERS
ASSOCIATION OP CANADA
will
now upon us
most important part in the
a
future
development oL this
485
McGILL
coun¬
STREET
MONTREAL
*
Telephone UN. 6-5371
try.
Some
people say "Why
need to go any
do we
faster than
we
today? Why is it necessary,
sirable, to
MeCUAIG
BROS.
&
CO. LTD
(say) from Toronto
go
of
think
we
and the better
MEMBERS
Exchange
The Canadian Stock
Exchange
The
Calgary Stock Exchange
The Investment Dealers' Association of Canada
results
closer
we
as
MAJOR & COMPANY
impact
Members
a
higher
together
can
effect
of
creation
understanding
ples.
-
Exchange
<
think
ORDERS EXECUTED ON ALL CANADIAN EXCHANGES
that the
say
forecast
beneficial
the
Exchange
Stock
that
of
I
—
have
on
this
the
Private Wire to Maritime Provinces
nation,
CANADA BUILDING
and from the international view¬
point,
Stock
Canadian
understanding that
by-product
speeds
a
Montreal
of this country,
quite rightly
knitting
MONTREAL, CANADA
the
communication
can
only
276 St. James St. West
of
closer communication between
the various parts
The Montreal Stock
do
de¬
to Vancouver in 4Y2 hours?
When
Established 1898
or
of "a
between
all
455 Craig Street West
better
peo¬
MONTREAL
Telephone
cen¬
scheduled for Saint John,
N. B. and Regina. The microwave
tres
Truly, the development of the
play
MA. 5621
any
this
course
The
Eastern
an
12
First,
to
TORONTO, QUEBEC CITY AND NEW
—
own
locations
having placed it.
Aldred Bldg.
your
However, any call which
both begins and ends in Canada
are
RETD
in
city.
ex¬
means
available to
are
that
and
scale
Toronto, and the following
same
reason
providing
introduced
be
considerable
to
say,
that
It will
more
a
1958 in
will be ableto dial your own year in Montreal, and from then
long distance calls to practically on steady extension may be ex¬
any one
of those telephones — pected.
whether in Vancouver or Seattle,
The machinery for such a proj¬
Winnipeg or Chicago, just as you ect has two essential elements.
an
return
Michigan.
on
you
distance dialing in Canada will
example of what this
it would seem quite within begin next month in Windsor,
reason to forecast
(dependent on when telephone users will be able
actual schedules) that an Eastern
to dial their own calls to Detroit
businessman could go to the West
and
a
wide
area
of
Southern
Coast, do a few hours' business
a
P.
wires
an¬
nually. When the new switching
arrangements are fully operational
the
& Canadian Stock Exchange
MATHER
Private
will
minutes; and
be 7 hours 45
Today, Tomorrow
creasing by about 3 million
job.
minutes;
Vancouver to Newfoundland
As
How
planning for
the future?
Investment
7
page
means,
MacDougall
L.
2
be
by 1962;
Winnipeg and Toronto will be 2
shipping
N.
will
minutes
of communication
H.
to
London, England will
45
minutes
by
hours 5
his
—
and
1960
years
1 hour for connections.
Members
Exchange
practical
are
1961;
to
are we
MacDougall 8 MacDougall
Stock
named,
hours
sleep in his
night.
Montreal Stock Exchange
from
Canadian Telecommunications
not
years,
cities
tne
by the
Toronto and
and
Toronto
Continued
international
For example, we forecast the
elapsed flying time between—
Toronto
business
our
does it
means
feel
hours 50
concerned,
with
shipping and
about,
10
tiie
1965:
as
it may seem.
initial dol¬
companies.
I
foreseeable
the
Canadian commerce?
comes
good
have
I
me,
you some
the
Tourist rates provided by
This, if it
a
will be Impact Upon Canadian Commerce
segments
far
the
signed
in
for
which
hours, and probably
On
Tourist-class
of
between
gooas
that possibly for any¬
thing from $175 to $250 one-way,
a passenger will be transported by
air to Europe in a matter of 10
First-class
Second-class
the next
Can we, as businessmen, neglect
the following estimates, for in¬
large expansion of the market
stance, with respect to the speed
for air transportation on the in¬
of the movement of people and
ternational routes, such as I have
deal faster than that in the years
1960 to 1965.
ice:
in
speak
a
to
three-class type of serv¬
a
we
should
us
routes.
Services, which
will undoubtedly—if approved— mentioned.
be provided on other international
It means
routes.
of
any
Barclay, Burns Bros. & Denton, Ltd., Toronto; Robert Herrndorf, Herrndorf Securities, Ltd.,
Winnipeg; Mr. & Mrs. A. R. Swanson, Burns Bros. & Denton, Ltd., Montreal
idly by and not take into Con¬
to
In Forefront
a
think
M.
sideration the progress which will
be made in air
transportation in
Keeping Canada's Air Transport
introduce
don't
J.
UNiversUy 6-1611
27
H. Webb,
Arthur
that
is
in
roads
the
and
railheads
—
where all
&
Mr.
& Mrs. J. A. Gray,
Credit Interprovincial, Ltee., Montreal; Mr.
James Richardson & Sons, Montreal
developed
being
FINANCIAL CHRONICLE
THE COMMERCIAL and
Convention Number
L. T.
Mrs.
Gibson, Harrison
& Company, Ltd., Toronto; Mr. &
Ltd., Toronto
Mrs. T. A. Ratcliffe,
Harrison & Company,
special services include the trans¬
mission of
photographs and
news
above
all for scientific data to be useful not
mechanization is only in the immediate but in the
distant future. Pure re¬
aid to better service and never quite
search and practical technology
end in itself.
And
this
awareness
calls
that
supplies musjt be delivered by
radio programs, information and an
far more plane and helicopter, or by land¬
instructions
needed
to
control an
than
examples
of ing craft on stony beaches, or by
We
have
needed, as I men¬ are both essential.
electric power grids and oil pipe¬
technical
progress.
The funda¬ tractor trains driving across the
Solid State Physics
blueprints and diagrams, tioned, equipment of great com¬
frozen wastes. That we have been lines,
mental fact is that only through
In the past decade solid state
coded data for processing by elec¬ plexity to provide efficient serv¬
high-speed
automatic
switching able to set up the vast technical
ice. This has been created through
physics has provided our most
administrative
organization tronic calculators. And radio tele¬
and microwave radio relay or its and
a
tremendous effort of scientific
profitable area of research. Tele¬
for
this
undertaking phone service is available in many
equivalent can we handle effi¬ required
development. Not only of applied phone scientists began to seek
without disruption of our regular parts of the country — both to
ciently the rising volume of long
science but of what I might call
knowledge here before the first
service commitmerjfs, is, I think, vehicles and shipping. My own
distance calls.
research in depth.
world
war.
and their research
an important commentary
on the company, for example, operates
They are the product of tele¬
It
is
not just
a
question of
resources
and
abilities
of
the mobile telephone service across
yielded over the years a number
phone operations on a national—
adapting known materials and
the most populous and industrial¬
Canadian telephone industry.
indeed a continental—scale. Work
of helpful devices. But their most
sector of Canada — from proven scientific facts to our daily
There are a number of different ized
of similar scope has been under¬
Windsor
to
Quebec
City. The operations. The telephone scien¬ recent discoveries constitute a
taken in the service of the na¬ ways of viewing telephone devel¬
Continued on page 28
Northwest
Telephone
Company tists must hunt out materials and
tional defense.
opment. I have mentioned some
telephone service by
of them—the increase in customers provides
radio up the B. C. coast to over
Mid Canada Early Warning Line and
calls, the addition of equip¬
The
Trans
Canada Telephone ment to meet demand for service, 2,500 tugs and fishing boats.
States.
United
These
projects
fascinating
are
.
System
was
appointed
geographical expansion of our
both through work in
national defense and by the pro-
the
manage¬
ada early warning line; our com¬
is acting as the project agent. yision of communications for dis¬
Stretching
across
the
country tant mining settlements or farm¬
westward
from
the*' Labrador ing areas. I would like now to
coast, the Mid Canada line is part tell you something about what I
of the great network
of radar might call development through
stations and communications sys¬ diversity.
It follows from our
tems
that
has
been
developed awareness of the very many types
jointly by Canada and the United of information that telephone fa¬
pany
States.
Hundreds
of
Mechanization
activities
ment contractor for the Mid Can¬
designed to transmit.
Microwave
radio
relay
carries
cilities
telephone
are
skilled craftsmen
employed on the television programs. Printed mes¬
undertaking in cooperation with sages are sent by teletype over
representatives df other Canadian Canada-wide networks. Many of
industries. They are working un¬ you will be familiar with this
der rugged conditions—far from service in your own offices. Other
engineers and
are
presently
These
are
features of the
some
telephone picture—as it ap¬
1956
to the public. I would ask
to accompany me on a
brief visit behind the scenes—to
pears
what is being done
see
MONTREAL
technically
ad¬
The first broad
CANADIAN
trend of develop¬
is
tion.
controversial in many
pretty
quarters, but it's an old standby
in the telephone industry, in fact
long-tried
our
aid
in
meeting
greater demand for service.
Thirty years and more ago we
to
mechanize local tele¬
is, to convert
dial—primarily because we
Wouldn't provide enough service
any
other way. Today we are
converting long distance service
to dial — with Direct Distance
Dialing.
And we are of course
still pursuing a vigorous program
of
local
mechanization.
Today
over
70% of all Canadian tele¬
Collier
NorrisQuinlan
Limited
it to
Distributors
of
Government,
Public
Utility,
Religious
phones are dial-operated.
One
important development along
these lines is the rapid spread of
unattended dial offices. In small
communities—and certain subur¬
Municipal,
Industrial
Institution
and
Securities
EXCHANGE
STOCK
ever-greater mechaniza¬
The word "mechanization"
ment
phone service—that
and
Quinlan
EXCHANGE
STOCK
and prepare for new ones.
vances
began
Underwriters
&
MEMBERS
to consolidate these
in order
is
Collier Norris
now
you
installing dial
offices which operate without any
permanent attendance. Plant men
make scheduled visits for main¬
tenance. Telephone calls requiring
assistance are switched automati¬
cally to an operator at a cen¬
tralized location.
The service is
ban areas—we are
efficient and
MEMBERS
The
Investment
Dealers'
Association
of Canada
Toronto
Montreal
Drinkwater Weir & Co. Limited
Investment Securities
i
Members of
The Investment Dealers' Association of Canada
23^ Notre Dame Street West
•
Montreal • Harbour 6101
economical to oper¬
ate.
But
it has one
drawback
—
a
drawback common to all processes
of
It does lessen
personal contact,
between telephone
mechanization.
the occasions for
in
this
case
employees and our customers. We
the years how
have learned over
MONTREAL
people expect and appreci¬
helpful service from
their
telephone company. Such
treatment is an important, even
much
ate friendly,
QUEBEC
SHERBROOKE
ST.
HYACI NTH E
MONCTON
of the
We are doing
though an intangible part
quality of service.
all
we
tion
can
in
to maintain the tradi¬
changing
circumstances.
Oswald & Drinkwater
Members
Montreal Stock Exchange
Canadian Stock Exchange
The Toronto Stock
Exchange
233 Notre D2me Street West • Montreal •
Harbour 6101
/
28
THE
Mr.
COMMERCIAL
FINANCIAL
and
& Mrs. Robert K. Wright, Mills, Spence & Co., Limited, Toronto;
Mr. & Mrs. J. R. Shemilt,
Gardiner, Annett Ltd., Toronto; T. F. B. Walker, R. A. Daly & Company, Limited, Toronto
Continued
from
phone equipment
27
page
reduced
in
&
Mr.
CHRONICLE
C. Hicks, Harrison & Company, Ltd., Toronto; P. B. Myles, Grant Johnston
Limited, Montreal; W. H. Price, Jr., Osier, Hammond & Nant on, Toronto
Mrs.
R.
size, affording impor¬
tant
sayings in space and raw
materials^ This is a complete ten-
Canadian Telecommunications
transistor-oscillator
stage
assem¬
Here is the piece of equip¬
ment it can replace.
bly.
Today, Tomorrow
Also the transistor is
solid, and
femarkably rugged.
expect it to have far longer
this makes it
veritable treasure house; they in¬
clude the transistor and the Bell
lion,
germanium has been de¬
scribed as "the purest substance
ever achieved by man."
solar
battery. Developed primari¬
for the telephone industry,
ly
these
have
devices
What will the transitor do? Re¬
application
it
gard
wherever electricity is put to the
service of man—from the most
compact hearing aids to immense
first
in
relation
the
to
tube. A transistor will do
vacuum
We
life
but
Say a tube of this size. It
will amplify electric power, con¬
electronic calculators.
The
1948,
is
trol it
transistor, discovered in
the breakthrough. Here
one
of
the
varieties
latest
transistor, and here is
mddel.
an
Most transistors
of
still, of
made
of
germanium, a semi-conductor
of electricity. While normally re¬
sistant to the flow of electricity,
germanium
can
electric
duct
be made to
currents
by-product of lead and zinc
a
in
certain
a
extremely
detailed
purification.
impurity of
With
one
is
of
measurable
a
act
as
are
the
time.
same
am¬
on
a
immediately apparent.
And other
components of transistorized tele¬
part in ten bil¬
warm
consumption
power
millionth of
up
about
—
one
tube's. This
vacuum
a
is another kind of transistor oscil¬
is
minute that with just a coin
so
and'
a
of
scrap
should
be
adequate
me
damp
able
tion
EXCHANGE
Telephone: MArquette 6347
•
coin
and
ih
only
to energize
and
and
paper
our
the
cur¬
oscil¬
I
pocket
made
you
this.
STOCK EXCHANGE
132 St. James St. West, Montreal
about
will
the
to
you
VE9LU.
contains
quate for
in
INVESTMENT DEALERS
find
a
the
heart
of
is
months'
of
the
Toronto
1
Stock
*12,
Place
d'Armes,
Montreal
from
a
of
match.
The solar
to
sensitive to
Even the light
That
was
a
that
solar
the
battery
clouds,
and
the
Transistors
are
not
musical
operated
INVESTMENT
GOVERNMENTS
It will func¬
sun
miliar bell—at
a
place
more
it
DEALERS
—
MUNICIPALITIES
PUBLIC SERVICES
You
as
sets
for
we
are
by
tran¬
of the
considerable
electric
is behind
electricity
RELIGIOUS INSTITUTIONS
611
—
INDUSTRIES
ST. JAMES ST. WEST—MONTREAL 3
UNIVERSITY 1-1461
wvw
kWV)
*
*»
«>
«►
i*
i*
«►
i
I
LAJOIE, ROBITAILLE & CIE
Lirriitee
60
/
St.
fa¬
sav¬
It takes
current
to
James
Street
West
MONTREAL
<*
the
of
limited
doing
also used
hearing, and
tones
take
I
would
BELANGER INC.
equipment
telephone
in
I
usefulness
is
when the
even
system
And
the sunny south.
tion
rather
telephone
earlier.
j
ade¬
ing construction costs, for one line
can be made to carry the load of
much
rural
spoke
round
Exchange
St. Peter Street, Quebec
using
set; the tele¬
naturally
back,
the
transistors
ing in electric current.
507
I
battery
the
is
it
over
battery. Last year saw the first
practical application of the solar
battery in the telephone industry.
Down in Georgia a battery with
432 discs supplied power for am¬
plifier stations in the transistor-
mention
kind of light.
Put
you
telephone—powered by the solar
public address system.
battery
to
considerable aid in limit¬
prove a
sistors
Canadian Stock Exchange
solar
voice.
talk
can
tran¬
a
experimenting with sets in which
Montreal Stock Exchange
the
I
phone is also connected with the
automatically across -the conti¬
nent. A transistor-operated tele¬
phone system is now being de¬
veloped for rural lines. It should
the hard of
Members
and
telephone,
quarter.
a
unaided
own
re¬
watt
one
supply
power
several
operating my telephone.
I remove the battery from the
light—and I have to rely on my
transistor
over
This
hundreds
amplifiers
Geoffrion, Robert & Gelinas
of
sun
in turn is
hope
I
and
number pf telephone jobs.
five.
r
size
with this telephone
which switches long distance calls
Investment Dealers' Ass'n of Canada
modern
a
speaking is
carry
got
the clock broadcasting.
The transistor is already
will
Members
a
connect
related device—a complete radio
broadcast
com-
It
fraction of
transmitter, with microphone and
antenna.
I'm going to switch off
the
public address system and
a
Geoffrion, Robert & Gelinas, Inc.
a
now
am
But when I place the
in the path of our
you
should hear
quite
distinctly.
The Bell
solar
battery is converting the
light into electrical energy which
energy—
amount.
a
and
me
solar battery easily provides
Now here is a solar battery.
shall but I have here
never
the
have
source,
should
—
haven't
today
possi¬
can
pocket
your
a
of
source
than
light
battery
substitute
world's
please lend
connect
to.
want
ready
quires
solar
industry we're inter¬
all in the availability
ested above
noise
by
must
we
current
quite dead.
Each is
produces
I'll
muncations
rather
the
to
answer
problems. For in the
The
created
the
alternating current that
the light. To imitate the
which I
over
destroyed
pieces of
wet
telephone set
my
It
CANADIAN
or
specially treated silicon.
you
the
the
power
sistor-operated radio transmitter.
'^EMBERS
MONTREAL STOCK
consumed
is
so
I'll put this battery-operated
spotlight to work. The telephone
or
gasoline engines.
moving parts; nothing
no
It consists of three small
transistor has
station
LIMITED
direct
lectern
my
battery.
hear
efficiently
sun
steam
here
any
that I
a
L. S. JACKSON & COMPANY
with
an
battery. Per¬
test my credit at the
Now
a
you
in
powers
battery attains an 11% effi¬
ciency which compares favorable
we
wet-cell
between
ble
resources
usable amounts of
on
what effect it has
see
solar
now
60-cycle
solar
paper
quarter, sir. Now let's try
it out.
The slight chemical reac¬
around
developing Canadian natural
and
construct
to
a
The
companies
directly
sun
light
a
Let's
the
on
the
efficiently into
electricity. The
from
energy
However, I trust you will not
get the impression that we have
to
lator.
the securities of
convert
the
rent.
on
you
can
regular radio receiver.
Another advantage is the low
a
the metal
ENQUIRIES INVITED
It
either
seconds
several
tubes of
have
I
with
one
Co.,
expect from
by its operation, and in theory it
will last indefinitely.
size, the compactness haps I can
quality of the transistor same time; would
one
Perhaps the
&
explosive sound than you'd
striking a match.
more
solid-state
here.
is
You will recall it takes
Battery
other
the greatest appeal to the imagi¬
nation is the Bell Solar Battery.
to work almost instan¬
goes
course, new
at
discoveries.
has
warmup
Solar
mentioned
It
The small
an
process
or
There
plify 2,500 conversations
single telephone line.
way.
refining, but has to go through
switch.
But the latest transistor will
effectively
treated
It is
valve would
conversations
con¬
when
a
vacuum
I
period
no
developments lator
prepared for demonstration
in the gas-tube field. For exam¬
purposes. Plug in the power and
ple, this compact vacuum tube it will
sing for you even if only
which is the work horse of the
on
a
single note.
A battery is
microwave radio relay system. It
needed, but the power supply re¬
will amplify up to 480 telephone
quired to operate the transistor
enlarged
are
as
electronic
an
was
average
It needs
taneously.
tube.
most of the work done by a vacuum
the
than
tube.
Bell
be similarly
can
Thursday, June 28, 1956
Members
::
i
?
«►
Investment
Dealers'
Association
of
Canada
«S.
HENRI
ROBITAILLE
Managing Director
ring
your
does
to
telephone
carry
bell
than
the conversation.
it
tvHUHHHUHWVHUHHUUHVWUUHWWHHUHwJ
Convention Number
Mr.
&
Mrs.
W.
F.
V
THE
Hill, Harrison &
Harrison
produces
teries
do
in
we
Company, Ltd., Toronto; Mr. & Mrs.
Ltd., St. Thomas, Ont.
J.
bat¬
Continued from page
use.
go
call
the electronic
era?
is going to test its first electronic
office. Even in the modern tele¬
however rapid.
With the use of
transistors and the various other
miniature devices for storing in¬
formation
and
making connec¬
be
sensitive
more
3
to
changes
In
ada,
the
harder
being
viewed
So
is
energy
quired to transmit telephone
that
the
in
line with
°f
to
solid
handle
policy
should
followed
form
a
as
of
"brake"
will
be
We may have to wait
quite a time
before the electronic office be¬
standard
have
equipment, but I
doubt
no
it
will
be
one
day — and bring us significant
savings in construction and operaing costs.
the
principally from out¬
business
and
for
this
part
regular approaches to the
Canadian
decade
for
the
of
investor.
than
the
quarter
a
stock
common
In
past
have been responsible
we
more
financing
country. From
proportion has
may
the
of
I say that
past half
expenditure over the
next
25
was estimated at over $3,000,000,000. By 1980 the total in-
years
of
the
in
will
vestment
times
I
its
see
this
should not
sum
from
This
sources.
is
Canadian
surely
most
a
worthwhile field for Canadian in-
.vestment,
it
as
is
for
Canadian
improved
services
pensable
to
meet
business,
Hudon,
Morgan,
is sound
our
be
may
derly fashion.
that
our
mone-
tary authorities should resist the
severe
inflation for many
Canada is
least of which,
discourages sav-
growing country
vast amount of capital for its development. Much of
this capital must come from the
a
a
in order that savings of the Canadian people
achieved
in
The evils of
or-
and
the conversion of these
both
sav-
ings into capital is one of
principal functions of our
known, at least to those of dustry.
Us who experienced the
great depression of the 1930's which shook
Volume of Financing
the
in-
the
all too
are
well
sav-
nomic
pace
progress
to
a
snail's
eco-
fanned the flames of the
ancj
en-
suing terrible world conflagration,
I
have
said
on
several
other
Turning
volume
that the
to the matter of
of financing, may I
amounted
compares
year
1955
was
an
Montreal
first
four
current
year
to $670,000,000 which
$560,000,000 in the same
The increase this
entirely due to
year was
a
marked
rise in volume of issues placed on
the market by corporations. Cor-
porate issues totalled $422,000 000
in
the
first
four
months
the
of
compared to $234,000,000 last
year. Provincial financing dropped
year
from
and
$196,000,000 to $141,000,000
municipal financing declined
$130,000,000 to $107,000,000.
the
bond
ex-
Ltd.,
the
the
of
period of 1955.
Of
tremely active one, although the
total volume of public bond financing for the year, aggregating
Hudon,
during
months
*
from
say
&
Total Canadian public bond fi-
nancing
.
world, swept away
jngs and employment, slowed
Ostiguy
lion)
of
the
first
public
four
(amounting to $670 mil¬
$458,000,000 and those placed
the United
000.
volume
issues placed in Canada to¬
talled
in
total
financing
months
States to $212,000,-
In the
same period last
year
out of the somewhat smaller total
occasions, I believe that soundly $2 670 000 000 was down sharply
administered monetary controls from the 1954 total of $4 500,000 w
P
contain the business 000. The smaller amount in 1955
amounted
cycle within
million.
the
in
more
limits
narrow
past and reduce the
was
principally the result of light-
er Government of Canada financ-
tendency towards booms and
re-
ing, which
cessions.
the
000,000 in 1955, compared to $3,-
Our
.
,
experience
,
,
,.
in
_
nnftftnftAnn
application of checks and balances 200,000,000
amounted
.
$1,354,-
At
this
refer
point
briefly
to
I
should
growth
like
of
to
our
Treasury Bill Market. It is grati-
in_.
in
to
(of $560 mj]lion) sales j
Canad
to
$495,000,000
and
(^ose ;n
United States to $65
1954.
Continued
on
page
30
-
X
indis¬
are
the
needs
government
individual Canadians.
and
of
of
certainly do not need to talk
about the desirability of
spreading the ownership of in¬
dustry
as
widely
as
possible
you
HIGH GRADE
the people of this country.
among
You
L.
telecom¬
of
I
G.
As Canada grows, ex¬
and
munications
to
building into
enterprise economies certain
inflation and deflation
than
why the major
reason
obtained
be
three
about
be
present figure.
no
part of this vast
the
industry
larger
means
free
As
panded
BuC all of this, as you well
know, requires a high level of
capital investment. Growth must
side
experiences
endeavour.
Capital Investment Required
be financed
monetary policy,
the
mechanical
no
movement, just the ultra-rapid
journeying
of
electric
current
through thousands of tiny, fan¬
tastically
sensitive
components.
comes
the broader aspects
century have clearly demonstrated
quantities of traffic.
There
it
In regard to
of
Mrs.
&
reasons, not the
is the fact that it
the necessity of
progress
money
it
forces of
ing.
t^e/-.re" checks and balances
of Can-
economy designed to prefrom being over-accele-
our
vent
com¬
tiny
able
re¬
Mr.
requiring
rated.
electric
Montreal;
the entire
presently
be
29
has been actually rather limited—
much is still to be learned. I be-
sponsibilities of the Bank
on
vast
Ross,
,
tions, the completely electronic
exchange begins to take shape.
be
A.
Developments
phone exchange, switching is still business conditions.
an
electro-mechanical operation, this a.nd in
will
G.
Significant Canadian Economic
Well, in 1958 the Bell System
devices
Mrs.
lieve
the telephone indus¬
others, rather loosely
among
munications
Jennings,
may
try,
little
A.
Company
well ask,
from here—in
you
we
in
stored
night-time
now,
where
what
be
can
for
And
&
COMMERC TAL and 1INANCIAL CHRONICLE
are
nomic,
well
its
of
aware
political
and
eco¬
social
ad¬
DIRECT SHIPPING IRON ORES
to year this vantages.
Nor
do
I
need
to
varied consider¬ emphasize
the support for this
ably—in two of these 10 postwar concept given by the shareholderyears
equity
our
counted
year
financing
for
nearly 70%
such financing in Canada.
would
ac¬
of
all
And I
like
to
emphasize
how
telephone companies
have appreciated the helpfulness
and goodwill manifested
by your
much
the
profession.
have
we
pand in
be
done
no
of
ume
The
in
return
something to
sure
calling
If
good
future.
your
frequently in the
total
that
will wel¬
you
upon
ex¬
the vol¬
measure
operations.
am
our
offices
surely
small
your
true, I
come
But
investment
in
plant
and
owned
own
presently
125,000
My
talk
phone
the
ersed
to
be
trav¬
and
our
even
more
rapid
growth, investment per
telephone is higher here than in
postwar
the United
States.
At present the
industry is spending some $200,.000,000 annually on new construc¬
tion.
In
the
brief. that
I
was
privileged to present to the Gor¬
don
Commission
on
behalf of the
Telephone
Tr^ans Canada
System,
over
the largest
Canadian com¬
any
rank
we
today
business
research
great
about
has
16th
BLAST FURNACE AND
dealt with
offers
and
such
OPEN HEARTH
further
for
single
one
inspiring all this activity.
battery would have no
purpose
solar
value to
us
industry than
not
Canada,
There is but
progress.
The
in
which
possibilities
from
have
of
FOB THE
the scope and growth of the tele¬
$1,500,000,000.
that
property
the North American continent.
more
distances
of
And
pany.
on
the
companies. My
for example, is
shareowners,
number
equipment of the telephone
industry is now in the order of
Because of the vast
telephone
company,
which
offer
ther
it
the
improve
in the telephone
the
common
evolves
if
sand
it
did
opportunity to fur¬
telecommunication
services.
And that is true of every
scientific and technical ad¬
other
An
our
industry.
This
thinking has inspired telephone
development in Canada from the
vance
earliest
sure
the
days,
you,
years
ahead.
*
and
govern
it
our
will,
Steep Rock Iron Mines, Limited
Steep Rock Lake, Ontario
I as¬
efforts in
of challenge which
lie
sa
THE
30
Continued
from
page
COMMERCIAL and FINANCIAL
ing public in
understood
clearly
are
relatively new
our
the
the
and
of
Treasury Bills as a medium for
employment of temporarily
idle funds. As was to be expected,
both
say
vestment Dealers
appreciate
Bank of Canada to discuss the de¬
velopments of this market in Can¬
proud of the fact important that we should see that
Canadian capital does not labor
under
a
disadvantage
in
any
capital invested in Canada ex¬
sphere
of activity, we
should
ceeds that invested in any other
strive to make it perfectly clear
country and that we consider this that foreign capital is welcome in
Canadians,
ada.
Before
concluding
ter of foreign
of
the
investment. In view
prominence currently be¬
is
the In¬
important that we,
vestment
that
ties
Canada,
of
Dealers
recognition
clear
lie
ahead
and
the
sta-
St. Peter Street,
few words of caution
Quebec City, P. Q.
out
of
of
Eastern Securities
Company
Limited
1910
Est.
as
nation, take
as a
well-being of
now
our
E. F. C.*
W. C. Pitfield & Co.
Ltd.,
MARTIN, I. A.*
Montreal
Royal Securities Corpn. Ltd.,
Montreal
KIPPEN, E. D. B.
Kippen & Co. Inc., Montreal
MEIKLE, W. D.
Cochran, Murray & Co. Limited,
BRUCE
W.
Kitchener
Kippen & Co. Inc., Montreal
MICHON, E.
KNOWLES, J. H.*
next gen¬
Ross, Knowles & Co. Ltd.,
Bell
Canada, Montreal
G.*
Lynch, Pierce, Fenner &
LANG, A.
Merrill
Toronto
MILLS, JOHN
LAWTIIER, J. L.*
A. F. Francis & Co.
Mills, Spence & Co. Limited,
Ltd.,
Toronto
Hamilton
MILLSON, L. G.*
LEE, H. T. I.*
Dominion Securities Corpn.
Bankers
Municipal and Corporation
Securities
MEMBERS OP
INVESTMENT
Offices:
Saint John,
Halifax, N.S.
Moncton, N.B.
ASSOCIATION
DEALERS'
OP
(Head Office)
N.B.
Summerside, P.E.I.
Charlottetown, P.E.I.
Fredericton, N.B.
CANADA
Sydney, N.S.
Corpn. Limited,
MORTON, J. N.
LETARTE, L. P.*
Molson Securities Ltd., Montreal
Corporation de Prets de
Quebec, Quebec
MURDOCK, G. E.*
Belanger Inc., Montreal
LIPSIT, E. C.
A. E. Ames & Co.
Ltd., Toronto
MURPHY,
Chronicle," New York
Seagrams, Saint John
MYLES, P. B.
C.*
D.
HAL*
"Commercial & Financial
LOVE, GORDON*
W. C. Pitfield & Co.
Grant Johnson
Ltd.,
& Co. Limited,
*
Montreal
Saint John
NEVILLE, H. E.*
MacKEEN, D. W.*
^Gairdner
Royal Securities Corpn. Ltd.,
& Company Limited,
Montreal
Montreal
NIXON, S. E.*
MacKEEN, ROLF
Greenshields
&
Co.
Dominion
Inc.,
Securities
Corpn.
Ltd., Montreal
Montreal
R.*
OBORNE, J.
MacLAREN, D. L.*
Nesbitt, Thomson and Co., Ltd.,
Lieutenant-Governor
Toronto
Again looking to the future, I
think that I can safely predict that
the outlook for the investment
business
THE
Bond
Toronto
Ltd., Toronto
MACKAY,
& Denton Limited,
Burns Bros.
Beane, Toronto
La
Telephone Company of
MILES, E. S.*
eration.
Government,
J.*
Lynch, Pierce, Fenner &
Beane, Toronto
Toronto
individuals
in meet¬
ing our immediate problems may
profoundly affect the prospects
and
and
*
which we,
actions
Montreal
MANDLEY,
Merrill
KINNEAR,
should bear in mind that the
we
Royal Securities Corpn. Ltd.,
»
Toronto
some
Limited,
McQUEEN, R. A.*
•
Investment Dealers' Association,
disappointments
be some tem¬
interruptions in the growth
economy.
I also feel that
our
Partners
&
Toronto
KINGSMILL, J. A.
and that there may
porary
McKINNON, N. K.*
-
Harris
Charlottetown
indicates
reasonably expect to
we may
encounter
Ltd.,
JONES, R. M.*
Eastern Securities Co. Ltd.,
might not be
Sons,
Winnipeg
St. Thomas
History
place.
James Richardson &
Harrison & Company
KIPPEN,
CHARLES*
McKELVIE,
JENNINGS, J. A.*
of Canada's
great statesmen near the turn of
the century, that the Twentieth
Century would belong to Canada,
will be borne out. To quote only
one figure, the fairly generally ac¬
cepted view that our population
may reach 25 million by 1975 sug¬
gests in itself a tremendous devel¬
opment. However, while we can
undoubtedly look forward to the
future with confidence, I think a
that
71
Equitable Securities Canada
Ltd., Toronto
Royal Securities Co. Ltd.,
with foreign capital in
building the Canada of tomorrow.
Co., Sydney
McEWEN, A. D.
Montreal
diction made by one
sJlnvtAtmuit
G. E. Leslie &
G. L.*
HUGHES, J. R.*
will agree with me that there
is abundant evidence that the pre¬
IjRENIER.fJuEL CUO.
Montreal
McDONALD, N. D.*
Morgan, Ostiguy & Hudon
Ltd., Montreal
you
NC.
Mills, Spence & Co. Limited,
C. P. R.,
Sainlt John
Looking to the future, while I
no crystal ball, I think that
and Stocks
McCART, D. A.
Public Relations
HUDSON,
Ltd.,
Vancouver
Charlottetown
have
Corporate Bonds
W. C. Pitfield & Co.
Co. Ltd.,
HOWARD, R.
Looking to the Future
Government, Municipal,
McAVITY, J. M.*
F. J. Brennan &
harmony
Ltd.,
Saint John
and Co. Ltd.,
London
by
Securities Co.
Eastern
M.*
T.
Robertson
HOWARD, G. R.*
investors Canada and that thinking in terms
of our great destiny we look for¬
abroad of the economic possibili¬
ward to working in even closer
a
ing given to this matter I feel that
it
Isard,
are
that the amount of foreign private
remarks
the mat¬
my
IIOCKIN,
point of
There has also been some sug¬
develop Canada's vast potential
gestion that in certain cases Cana¬
on the scale presently foreseen.
I am sure that I voice the feel¬ dian capital, under our present
ings of the vast majority of Can¬ tax laws, is at a disadvantage vis¬
adians when I say that we, as a-vis external capital. While it is
very
I should like to refer to
here largely be¬
opportunity for prof¬
it. However, it does seem unfor¬
tunate that our citizens have no
of the
cause
MacMURRAY, J. A.*
Halifax
that capital comes
to
much the op¬
portunities which have been given
to us by the Treasury
and the
we
parent companies.
This is a
matter that warrants
careful consideration by all con¬
cerned.
We must bear in mind
Gairdner & Co. Ltd., Toronto
Royal Securities Corpn. Ltd.,
foreign
other
MacLEAN, C. W.*
HILLS, II. H.
at operations of subsidiaries that are
wholly owned by United States or
that from the long range
behalf of the In¬
of Canada that
on
Convention
looking Canadians that we must
view it would be in the interests
continue to depend heavily upon
of many of these enterprises to
foreign sources, for many years
have a Canadian interest in their
to come, to meet the tremendous
share ownership.
needs for risk capital if we are
experience has suggested adjust¬
ments
and
adaptations to meet
Canadian conditions and I should
to
but
from the grow¬
opportunity to participate in the
frequently accompanied it, our profits of some of our most im¬
progress in all probability would portant and most rapidly growing
There are, I believe,
have been much slower. It is also industries.
clearly recognized by all forward- strong grounds for the suggestion
the
like
shores,
our
it, and the know-how that has so
market
popularity of
money
our
growing
to
rather it develops
Market. Thinking home and abroad.
in terms of the problems involved
Understanding Foreign Investment
in establishing a new market of
As I have said on several other
this type, the increase in the vol¬
ume
of Bills held by the public occasions, almost every Canadian
from $22 million as at the end of is well aware of the fact that for¬
January 1953 to over $550 million eign capital has played a most
at the end of April of this year important role in the development
of our country, and that without
is indeed proof of the broadening
Bill
of the base
capital
eign
any
ing feeling among Canadians that
they should have the opportunity
should make every effort to see of
acquiring some measure of
to it that the real issues involved share ownership on the Canadian
fying indeed to note the growing
interest on the part of the invest¬
In Attendance at
question of
desirability of welcoming for¬
not involve
does
Significant Canadian Economic
Developments
discussion
present
the
Clearly
Treasury
political and financial Continued from page 8
bility of our
institutions.
29
Thursday, June 28, 1956
CHRONICLE
in
is
Canada
Province of New Brunswick,
OUIMET, R.*
Saint John
♦Denotes
Mr.
Dawson, Hannaford Limited,
&
Montreal
Mrs.
extremely
bright, for a healthy private en¬
terprise economy requires a plen¬
tiful and
continuous supply
of
capital.
From the shorter-range
point of view, the current official
estimates of private and public in¬
vestment in Canada in 1956, and
the more tentative estimates for
1957", suggest that
though it
even
G. E. LESLIE & CO.
Business Established 1900
not be possible to carry out
these intentions in their entirety,
may
^/////////////^^
because
carlile
&
McCarthy
LIMITED
In
Over 25 Years in Western Canada
limitations
of
the
upon
availability of funds, labor and
materials, we
can
nevertheless
anticipate that near-term capital
requirements will be of very sub¬
stantial proportions.
closing,
while
I
may
I suggest that
convinced
am
that
Can¬
half cen¬
tury will be certainly spectacular
by
past
standards,
our
actual
Members:
•
Montreal Stock
Exchange
•
Canadian Stock
Exchange
•
The Investment
Dealers' Association of Canada
ada's growth in the next
MEMBERS
THE INVESTMENT DEALERS ASSOC.
OF CANADA
Halifax, N.S.
considerable de¬
denend upon the willingness
Sydney, N.S.
years,
Direct
Private
Wires
To
All
gree.
Leading Exchanges
of
the
will, to
—
Edmonton
—
Vancouver
next
the
a
future, and to place
their shoulders to the wheel. This,
—
Victoria
Canada's
in
Calgary
over
Canadian people to invest
in
Offices:
my
lenge
Branches:
50
achievements
opinion,
to
the
of Canada
will accept.
presents a
Investment
which I
am
chal¬
Dealers
they
sure
Private wire system to
Branches,
Toronto and New York
Moncton, N.B.
Saint John, N.B.
The
Royal Bank Building, Montreal
Telephone: HArbour 8281
Convention Number
THE COMMERCIAL and FINANCIAL
CHRONICLE
-
R.
C.
Bartram,
McCuaig Brothers
&
Co.
Toronto; Jim Edwards, Matthews
&
Company, Toronto; John Winslow,
Woodstock, N. B.
PATTERSON, C. S.
Bell Telephone
Company of
Canada, Montreal
PATTERSON, HON. D. S.*
W. C. Pitfield &
Ltd.,
E.
S.
Miles,
Burns
Bros.
Winslow
Press," Toronto
Securities
Co.
Ltd.,
Eastern
M.
Wood, Gundy & Company
Limited, Toronto
WATT, G.*
Kidder
&
Co., Montreal
Gairdner
&
WINSLOW, J. E. C.*
Company Limited,
Winslow & Winslow Ltd.,
Woodstock, N. B.
WEBB, A. H.
Greenshields & Co. Inc.,
Credit
Montreal
Securities
WILDER, W. P.
Wood, Gundy & Company
Limited, Saint John
SEYMOUR, H. F.*
ROBB, E. K.*
PEPALL, W. G.*
WATT, CLYDE
Toronto
Moncton
Corpn.
Willis, F. J. Brennan & Co., Ltd., St. John, N. B.; Jack Mandley, Merrill Lynch,
Pierce, Fenner
& Beane, Toronto; Den Webb, J. H.
Crang & Co., Toronto; James A. MacMurray,
Eastern Securities Co., Ltd., St.
John, N. B.
SAMPSON, S.
A.
F. J. Brennan &
Limited, Toronto
Jim
Midland Securities Corpn.
Ltd.,
RILEY, C. J.*
PENNY, J.
Ltd.,
Ltd.,
Montreal
RHUDE, FORBES
Canadian
Denton,
Winslow,
RYLEY, G. G.
"Court Reporter," Montreal
"The
&
&
REEVES, Miss FERN
Company Ltd.,
Saint John
Royal
Montreal;
Interprovincial
WOOD, J. M. DUFF
Limitee,
Fry & Company Limited,
Montreal
Company
SHEMILT, J. R.
Toronto
-
Bell, Gouinlock & Company,
Ltd., Montreal
Ltd., Fredericton
PERIGOE, D. A.*
Gairdner & Company
Limited,
Toronto
S.
"The
PITFIELD, W. C.
<
H.*
Montreal
Inc.,
WRIGHT, E. J.*
Geoffrion, Robert & Gelinas
Inc., Montreal
Company
Limited, Halifax
WRIGHT, R. K.*
Mills, Spence & Co. Limited,
WEST, R. B.*
Telegram," Toronto
E.
Ames
&
Toronto
Co. Limited,
Toronto
W. C. Pitfield &
Company
Montreal
Ltd.,
WYNCII, A.
STANBURY, W.
WHITE, W. T.
W. C. Pitfield &
Compan
Victoria
E.
Leslie
&
"Toronto Daily Star,"
Co., Halifax
WHITTAN, F.*
C. J. Hodgson & Co. Ltd.,
Dominion
Montreal
H.
& Denton
Limited,
C.
Flood
&
Co.
Ltd.,
Securities
orpn.
Toronto
STEINER, R. N.*
Ltd.,
Montreal
Toronto
YOUNG, N. D.*
ROGERS, J. C.*
»
POPE, JOSEPH*
Burns Bros.
S.
Crang & Co., Toronto
W. C. Pitfield &
A.
Lajoie, Robitaille & Cie. Ltd.,
C. Pitfield & Co.
Co., Montreal
G.
ROBITAILLE,
New York
&
SOPER, W. Y.*
W. C. Pitfield & Company Ltd.,
Halifax
Limited,
Montreal
Kidder
SMITH, H. D.
ROBINSON, J. M.*
A. E. Ames & Co.
M.
Sons,
PIPER, W. J.
W.
Photographer,
Montreal
Toronto
J. H.
WELLS, F. II.*
SKELLY, D. A.
A.
ROBINSON, ROGER
B.*
James Richardson &
Gardiner, Annett Limited,
Savard & Hart Inc., Montreal
C. P. R.
PfflPPS,
WEBB, D. I.*
Toronto
ROBICHON, PAUL*
r
Toronto
A. E. Ames & Co. Limited,
Toronto
ROSE, F. N.*
PRICE, W. H., Jr.
Dow Jones &
Osier, Hammond & Nanton
Limited, Toronto
Co., New York
ROSS, DONALD*
STEPHENS, S. C.*
James Richardson &
Sons,
Toronto
Wood, Gundy & Company
PURDY,
C.
E.
M.*
Stanbury &
Limited, Toronto
Company Limited,
Saint John
Collier, Norris & Quinlan Ltd.,
RATCLIFFE,
T.
A.*
Montreal
Harrison & Company Ltd.,
Toronto
RAYWORTH,
ROSS, G. W. W.*
Royal Securities Corpn. Ltd.,
L.
M.
Moncton
S.
Stanbury & Company Limited,
&
Co.
Limited,
STEWART, G. C.*
Royal Securities Corpn.
Limited, Toronto
Burns Bros. & Denton
Limited,
Montreal
Halifax
W. C. Pitfield & Company
Limited, Moncton
SWINDELL,
RUSSELL,
F.
H.*
Nesbitt, Thomson and Co., Ltd.,
&
Ames
SWANSON, A. R.*
ROWAN-LEGG,
READ, W. F.*
Mr.
E.
Montreal
Saint John
Nesbitt, Thomson and Co., Ltd.,
♦Denotes
STEVENSON, R. H.
A.
ROSS, G. A.*
G.
S.*
Wood, Gund.y & Company
Limited, Winnipeg
Vancouver
Mrs.
TAPRELL, W. R.
Carlisle & McCarthy Ltd.,
Calgary.
TAYLOR,
G.
H.
Wood, Gundy & Co. Inc.,
New
Canadian and
Foreign
York
THOMPSON, C. R.
Nesbitt, Thomson and Co., Ltd.,
Canada's "industrial"
Halifax
market
TREBELL, FRANK
Investments
Greenshields
&
Co.
Inc.,
Toronto
for the
One of Canada's
leading
exchanges for the trad¬
ing of mining, oil and
place since 1874
shares of major
Canadian and U. S.
industrial securities.
cor¬
porations.
TRIGGER, R.*
"Investment
Dealers
Digest,"
New York
r
VIDRICAIRE, H. J.
James Richardson &
Sons,
throughout the world
Bank
Building, Edmonton
Telephone: 47276
Alberta, Canada
•
Cable: STAMILCO
'
'
'
Private wire system—New York, Toronto.
'
Calgary""
Ltd.,
serve
V
lDDS, R. W.*
McLeed, Young, Weir
Imperial
Canada's Security Market Places
Th« 100 member firms with 425 offices
Montreal
CAft/.
and
& Co.
assure
prompt
the
investor
execution of orders.
Toronto
WALKER, T. F. B.
R. A.
FREK
Daly & Company Limited,
Toronto
•
BOOKLET
AND
MONTHLY
REVIEW
•
0
453 ST. FRANCOIS XAVIER ST.
WARD, D. H.*
Dominion
Securities
Ltd., Toronto
31
Corpn.
MONTREAL. QUE.
@FedFRASER