Full text of Commercial and Financial Chronicle : June 30, 1960 : Investment Dealers' Association of Canada Convention, Vol. 191, No. 5964, Section 2

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The Commercial and,

Financial Chronicle

Thursday, June 30, I960

INVESTMENT DEALERS' ASSOCIATION

OF CANADA
OFFICERS 1960-1961

PRESIDENT

VICE-PRESIDENT

VICE-PRESIDEN T

VICE-PRESIDENT

■*s.

Eric S. Morse

W. Tom Brown

W. C. Pitfield &

Odium Brown

Company Limited,

Investments Ltd.,

Montreal

Vancouver

W. S.

Dunlop

Edgar Hill

Royal Securites
Corporation
Limited, Montreal

Oldfield, Kirby &
Gardner Limited,
Winnipeg

HONORARY

VICE-PRESIDENT

James A. MacMurray
Eastern Securities

Company Limited,
Saint John

HONORARY

VICE-PRESIDENT

Thomas W. Meredith
Osier, Hammond &
Nanton Limited,

VICE-PRESIDENT

PRESIDENT

D. Bruce Shaw

D.Young

A. E. Ames <ft Co.

Dominion Securities

Limited, Toronto

Corpn. Limited,

Calgary

Toronto

HONORARY

SECRETARY-

MANAGING

TREASURER

EMERITUS

DIRECTOR

John R.

Hughes

Royal Securities
Corporation Limited,
Montreal

J. Douglas

Bulgin

J, A.

Kingsmili

Harry L. Gassard

Dominion Securities

The Investment

Corpn. Limited,
Winnipeg

Dealers' Association

of Canada

Volume

191

Number

5964

The Commercial and

Financial Chronicle

ploying the most modern of tech¬
niques. Today, the competition for
export markets, in both raw ma¬
terials and finished goods, is in-

Some Disquieting
Of the Canadian

Economy

tense

—

than

the

Despite the fact that Canada is

saving
than

growth

During the postwar period governrrient, business, industry and

is not

By Norman J. Alexander,* General Manager, James Richurdson &
Sons, Winnipeg, Manitoba; and Retiring President of Investment

labor have all been conditioned to

tively

A blunt

and

year-end briefing
the

of Canada

problems and challenges facing Canada

Alexander. After listing changed conditions affecting Canada's future

cessions
ishness
and

(1) con¬

by labor, industry, business and government making "unself¬
...

economic virtue")

diversification)

(2) greater industrial efficiency

(3) development of small home market for sec¬

ondary industry without hampering export trade by tampering with
tariffs) and (4) increased domestic capital formation and less consumption.
the

are

A year ago

when I took office as
President considerable prog¬

your

had

ress

been

made

re-estab¬

lishing the Canadian dollar

basis

sound

come

Affecting security prices until they are solved,he concludes,

standing

the

economic

its

problems
and of the government's determi¬
nation to maintain

al¬
laying fears
through

sound dollar.

background of

his budget speech
this year, Mr. Fleming was able
to project a budget surplus of $12
million
and
non-budgetary re¬
quirements of some $225 million.
On this basis net cash require¬
ments for the fiscal year, includ¬
ing the C.N.R., will be about $210
million. This is in sharp contrast
to the overall cash requirements
of $900 million in the 1959-60 fis¬
cal period and $1,273 million in

the

1958-59.

Happily,

inflation

thus

and

re¬

public

storing

confidence

Canada's

fi¬

struc¬

nancial
ture.

It is

unnec¬

for

discuss

the

essary

inflation¬

ary condi¬
tions. By June
of

the

last

Now,
Norman J. Alexander

where

where do

do we stand
go from here?

and

year

Canadian

The

was

well

the road to recovery from
the recession; there had been no
increase in the money supply for
a
period of nine months and the

Changed Conditions Affecting

along

Canada

accelerating

scientific

becomes

pace.

discovery of today

the technician's problem

overnight

and

monplace

its

use

the

tomorrow.

com¬

the

ing

for all peoples, the limiting
factor will not be scientific and

Throughout the world the post¬
war

new

that

one

matter

This

public

enlightenment

these

while

prices

many

foodstuffs

have fallen.

In Western Europe, in Great
Britain, Japan, North America
ister of Finance in a
series of and elsewhere, there is surplus
candid statements brought to the productive capacity, much of
Canadian peoples clearer under¬ which is highly efficient and em¬

matters

was

essential.

condition Budget

highly developed

domestic

Speechv with

the

accom¬

for Canada, nor panying
"White Paper" as re¬
for other rela¬ ported in Hansard of March 31st.
younger

industry and

capita basis,

our Fed¬
declining con¬
sistently for years. The actual fig¬
a

per

eral debt has been

ure

of Canada's direct debt at the

end of 1959

was

$700 million lower

than at the end of 1945 and, dur¬

ing this period,

our

increased by 40%

population has
and our G.N.P.

nearly tripled.
Increasing Domestic Capital
Formation

While

our

external

debt

were,

therefore, pleased when the Min¬

that

and

is interesting

other

large

extent

possible.

Canada's economic development
could not have proceeded at such

finance

mestically

—

Gross
as

National

Product

the

increases

GNP

are

the growth of population and "per

capita" growth used as the yard¬
stick, then our growth is far more

FIRST

IN CANADA

moderate.

Capital expenditures in 1960 are
estimated at $8.7 billion which is
equivalent to nearly 24% of the
anticipated GNP of $36.7 billion

1957

the

present 24%. Never¬
theless, with capital expenditures
nearly equal to a quarter of our
GNP
we

must

most

obvious,

take

I think, that
pains to make the

effective

resources

use

our

the

capital

disposal.

Incorporated 1932

OPPORTUNITIES IN CANADA

Calvin

Bullock, Ltd.

507 Place D'Armes
Our

facilities

industrial
suitable

can

of valuable

assistance

those

interested

Montreal

the

development of Canada and of benefit to investors in selecting
investments

through which to participate in Canada's assured

growth.

FIRST
Nesbitt, Thomson

and

Company,

IN THE

Limited

UNITED STATES

Members of The Investment Dealers' Association of Canada

Head Office: 355 St. James Street W.,
Branches

in the

Montreal

principal Cities of Canada

Nesbitt, Thomson
Members Montreal Stock Exchange
Canadian Stock

—

Co.

Toronto Stock Exchange

Exchange

Nesbitt, Thomson and Company, Inc

25
140

Broad Street,
Federal Street,

Direct

New

wire

New York 4, N. Y.
Boston, Massachusetts

connections

between

York, Montreal, Toronto, Ottawa, Hamilton, Kitchener,

London

has

to grown rapidly, consolation can be
young countr^s, taken in the fact that the net cost
such as Australia, are stud}in? of servicing this external debt in
the impact of the use of imporwi relation to our G.N .P. is declining.
capital and the
advantages
of In 1959, it was just under 1%%.
home ownership of industry to as
However, we must endeavour to
resources

note

hardly seemed aware of seeable future. Even during the
improved position and recent upturn in business activity
certainly did not appreciate the in most Western Democracies, the Our capital expenditures ex¬
significance of the favorable de¬ index of prices of raw materials pressed as a percentage of the
velopments
that
had
occurred. has remained almost constant GNP have declined from 27% in
Canada's

some

debt position
going to bore

yardstick then the
growth is rapid. If, however, the

that time

stated that

not

What is our position with re¬
gard to this commodity "capital"?
Canada continues to grow and if
taken

period has been one of rising
prices
promoted
largely by a
Minister of Finance was firmly
varying degree of inflation, but
embarked
on
a
course
towards the
experts are almost unanimous
balancing the Budget.
in the opinion that today the infla¬
Unfortunately,
the
public
at tionary trend is over for the fore¬

Our Association

present
am

of our growth do¬
in other words — in¬
crease
our
rate of savings. With
the present trend towards the wel¬
inventive genius—it will be cap¬ a rapid pace without the injection
fare state, this is a difficult thing
ital. In an increasingly technical of foreign capital. Imported capi¬
to achieve.
world
the cost of commercially tal will undoubtedly continue to
Thirty years ago; the cost of
be an important factor in our fu¬
exploiting scientific developments
Government at all levels equalled
will become progressively greater ture growth but it should be our
about 10% of our total national
as
will the penalties of obsoles¬ aim to provide a growing propor¬
tion of our capital needs ourselves. output. Today it is 30%. Although
cence.
If this view
is correct—
it is to be expected that as our
that capital is the key factor in Of course, the ideal position would
be for us to provide all our own economy expands and our popu¬
our drive for greater productivity
lation grows the cost of Govern¬
and a higher standard of living capital and to become a creditor
ment will rise, clearly it is rising
—it is clear that our industry has nation. Such a condition, however,
is still years away.
Continued on page 17
a vital role to perform.

drive for higher standards of liv¬

the
economy

economic virtue.

creasing at
The

situation.

public was told both of the coun¬
try's improved financial strength,
some

for

ourselves.

control

Man's store of knowledge is in¬

problems of increasing exports and reducing unemployment.

Canada's

higher is sound. I

countries

rising prices. It is not going to be nations.
easy—particularly in North
Problem of Foreign Economic
America — to readjust both our
attitudes and practices to the al¬
Control
most
strange condition of rela¬
It is economically sound to in¬
tively stable prices.
crease productivity by supplement¬
Concessions, some of which may
ing domestic savings with foreign
not come easily, will have to be
capital. However, it must be rec¬
made by labor, industry, business
ognized that the importing of cap¬
and
by government. Putting it
ital introduces problems. One of
more
bluntly,
unselfishness,
of these
is the question of foreign
necessity, is going to have to be¬

improved climate for saving and investing is made by Mr

growth, the head of Canada's investment dealers calls for:

that

rate

other

the you with a whole forest of figures
Western world, we have not been but for those who are statistically
able to finance our entire capital minded I commend Mr.
Fleming's

memory of most of us here.

Dealers' Association

most

(Ont.), Winnipeg, Calgary and Vancouver.

Incorporated 1952
Calvin

Bullock, Ltd.

One Wall Street

New York

wells

and not
will never
know how many millions of cubic
feet of natural gas were flared
off. At the present field purchase
price of 13V2 cents per thousand
cubic feet those spectacular flares
represented quite a few dollars
of attractive assets.
Since then,
of course, government supervised
and industry sponsored conserva¬
tion practices have corrected this
waste of energy and all discov¬
eries are capped for future de¬
gas

Canadian Natural Gas and
By J. W. Kerr,* President, Trans-Canada Pipe Lines Limited
Favorable outlook view for the Canadian gas

industry in general and

Trans-Canada Pipe Lines in particular is based on considerable evi¬
dence

presented by Mr. Kerr whose firm services two-thirds of Canada

and several American transmission

figures

increasingly growing

companies. Matching postulated

proven reserves to sales

figures, Mr.

analysis sees the effect of this containing the wellhead price
and assisting future sales to U. S. markets. Besides depicting an

head discusses the

profits and cost picture resulting from increasing
volume; hopes our F. P. C. will soon allow sales to Tennessee Gas
Niagara Falls; and details his firm's future plans.

important imponderable looming up is said to be the

neces¬

sity of resolving regulatory policy in direction of liberal rate of return.
natural

and

natural gas when

they

Trans-Canada's role in the indus¬

ing for water. We

can

try

industry

gas

subject

with

many

facets and complexities. I suppose
the
complex
and

broad

this
is

Recalls Gas Industry's Start

decided there

was

made,

and

real¬

additions

business
and

our

vocabulary

modern

billions

trillions of cubic feet of gas,

the

idea

with

kets;

dream

venture

has just

been

very
years,

recently, the natural gas
industry development and growth
lagged far behind the growth of

few

other

J. W. Kerr

even

though natural

gas

first dis¬

was

covered 77 years ago in southern
Alberta. It was back in 1883 that

construction
dian

Pacific

Until

under

for

way

years.

crews

the

Railway

Cana¬

discovered

industries.
In fact
the early history of the industry
is really paradoxical because, not
energy

oil well drillers
found that pockets of natural gas
many

years

were

ago,

rather

nuisance

than

marketable form of energy.

Many

businessmen

American

and big-inch pipelines and remote

recent

after that decision
imaginative Canadian

controlled gas turbine compressor
stations
were
not
even
in
the

until

conceived

connecting

the

now

gas
fields of Alberta
Eastern Canadian mar¬

the

this

risk
capital
proving to
prime ^importance to our

was

that

now

Canadian economy.
When

Valley, where

rence

minders

our

early

history still exist,
recall
first

that

St.

Law¬

many

re¬

Canadian

can easily
Canada was

Western

by explorers of
Company and the
Hudson's Bay Company late in the
18th Century. About a hundred
years later the railways
pushed
through
to
initiate
a
national
opened

Northwest

the

Now, halfway through
Century, the pipelines have
created a most important link, or
vehicle, for the connection of a
very important part of Western
Canada's economy with growing
It

Canada.

Eastern

Rise

the

trillion

cubic

feet.

established

Two

sure

that

many

of 30 trillion

trillion

rapid

cubic

feet because

Trans-Canada

now

have

these proven reserves are at

trillion

feet

trillion

than

double

lished

cubic feet,
volume

the

When

1954.

more
estab¬

of British ColumT
bia, Saskatchewan and Ontario to
proven reserves

reserve

trillion

cubic

than

feet.

This

than

all

American

because

abundant
rate

business

export

this

domestic

our

already
and

reserve,
of
new

expected

the

reserve

represented

contracts

also

the

United

States. It

week

where
a

has

our

Effect

Sales

Price

accurately
future

predict

additional

the

purchases

Continued

first Canadian Bank in The Caribbean offers

you

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MUNICIPALITIES

The Bank of Nova Scotia Trust

and

(Bahamas) Limited provides a full range

nominee services

CORPORATIONS

of trust services for individuals and
organ¬

required. The Trust Company has its

izations—including trusteeship of settle¬

headquarters in Nassau, Bahamas, and

ments,^ administration of estates

and

executorship of wills, and management
services for

The

Harriman Ripley & Co.

)

ers

Incorporated

and Distributors of

63 Wall

BOSTON

•

special tax structure of the
provides many advantages of

interest for those
national

companies with inter¬

trading, manufacturing,

may

BNS

the

where

Tobago.
be directed

offices in the

BNS offices in
or

to any

Caribbean,

headquarters of the Trust

Company in Nassau,
York

available

registered in Jamaica, Barbados,

Inquiries
the

corporations.

Directorship and

are

or to

any

of the

Canada, London, New

Chicago.

Street, New York 5, N. Y.

CHICAGO
CLEVELAND

Capital Issues

is also

and Trinidad and

holding companies, pension

funds and financial

Bahamas

financial interests.

•
•

London

PHILADELPHIA
DETROIT

•

Correspondents:

•

SAN FRANCISCO

READING

THE BANK OF NOVA SCOTIA TRUST COMPANY

(BAHAMAS) LIMITED
,

LL, HIGGINSON, ERLANGERS LIMITED

NASSAU, BAHAMAS

cost

CANADIAN GOVERNMENT

Company

is, of course, not possible

trillion

firm.

Wellhead

securities of the

PROVINCES

fields

contracted,

Eastern Canadian

our

Aid
It

now

additional

done

American sales programs

becoming

are

result of

and

because

been

THE BANK OF NOVA SCOTIA
The

both

interesting that ouj? con¬
increasing almost

By 1989, it is forecast that Canada
a

volume

sales

drilling

very

under

gas

with

our

every

secondly
to

about

tracted supply is

and

discoveries

cubic

through 1989.

interest,

and

exists

natural

picture is significant
ways. In the first place,

future

the

Canada

reserve

many

producers in Al¬
berta, and this is a plentiful sup¬
ply because it is about 10% more

the Alberta figure, we get a total
proven

year

point

contract

add

discovery rate that is

new

organization underwrites,

distributes and deals in

feet,

tremendous volume

conservative estimate because the

and the

use,

export, and deduct¬
total of 29 trillion from

expected each

least

trillion for

they had been increased 50%
the 1954 level, and right

now

feet

This leaves

discoveries. By

new

are

cubic

Energy Board be¬

of energy, but 30 years from now
this surplus is estimated to be 46

above

the

trillion

reserves.

by itself is

years

cubic feet, three times the present
volume. This is probably a very

ada.

find that right now this is 1 tril¬
lion
cubic
feet
surplus
to
all
known requirements. This surplus

1956, these Alberta re¬
had been increased by 35%

result of

as a

gas

Reserves

surplus of just over 9 trillion feet,
and just over 8 trillion feet will
l5e required to back up the pres¬
ently approved American export
contracts, After adding the 21

later, in
serves

Surplus

lieves that Canada will require 21
of the 30 trillion feet of
presently

Alberta were estimated to be 13.4

reasonably familiar with the story

Our

reserves

will have

natural
gas from Alberta to Eastern Can¬
to export

to market. The

in the formative stage,
of natural
gas
in

pany were

its

permit

the

interesting to look at the
anticipated disposition of these

least 2 trillion cubic feet per year.

first

that

trillion for domestic

only six years ago, in
1954, when Trans-Canada received
A*

Proven

Matter

During
1954
when
Trans- ing the
Canada,
and
the
other
main the reserve

realistically

was

recently

belief

at least 92 trillion cubic feet. It is

Canadian gas transmission system,
the Westcoast Transmission Com¬

the

Board

their

30 years from now will be

reserve

markets

Energy

confirmed

Reserves

Gas

1958

the

are

reassuring,

National

total

by 1989. It
however, that the

life

Tremendous

this

•

will

reserves

cubic feet

professional

economy.

c€auaduiit

who

trillion

300

construction
left various

and

the

estimate

Association,

by competent geology,

with a variety of also important that the reserve
experiences,
today picture is dynamic and not stand¬
hold positions of senior responsi¬ ing still, because the short-term
bility in the operation of€ the and long-term market prospects
system. Many of these men were provide the incentive to the pro¬
to
continue
on
the team that completed the ducers
exploration
initial project for less than the and drilling.
estimated capital expenditure, and
of

walks

and

able for sale outside the Province.

national

stage

that there
small amount avail¬

needs,

own

plentiful

scale, and its
rapid expan¬

engineering
project, and

Petroleum

backed up

2,294 miles to Montreal. It is now
gratifying to us that a great many
of the young Canadians who be¬
came
associated with this major

enough gas for

was

Shortly

course,

Canadian

the

Thursday, June 30, 1960

system which stretches from the
Alberta - Saskatchewan
border,

industrial development.

would

And, of

In 1951 the Province of Alberta

Oil

sion

that
sup¬

their

such

ize that its de¬

velopment

say

struction pioneers.

inevitable

inherent,
particularly

factors, rates of return, regu¬
a wide variety of uses

abundant

very

construction

initial

the

made
the
final
weld
at
ply of natural gas energy, and the who
creation of pipeline transmission
Kapuskasing possible by Oct. 10,
systems makes this energy avail¬ 1958, well ahead of the scheduled
able
from
British
Columbia
to completion
date.
Perhaps
this
Quebec. Forgive me if I mention final weld will one future day be
Trans-Canada
too
often, but it likened to the driving of the last
truly is a major factor in the de¬ spike in our great transcontinental
velopment and recent growth of railroads, and prove to be a dra¬
our industry.
matic milestone in the history of
Canada's
economic
growth
and

economics of transmission,

serves,

for this new form of
energy, never
entered the minds of those con¬

and

days, such aspects of their
discovery as development of re¬

factual

now

lation and

industry

when

drill¬
that

sure

in those

load

scope

were

Canada has

encouraging short and long-term market prospects, the Trans-Canada

Transmission Co. at

mand.

Kerr's

The most

capped

were

recorded, and

even

The Transmission Industry

The.

Chronicle

The Commercial and Financial

page

Volume 191

Number 5964

The Commercial and Financial Chronicle

recognized as qualifiers to the
generally
encouraging
prospect
for the rest of the year.
And I

Canada and America Face

believe

A New World Trade Force
By Henry C. Alexander,* Chairman, Morgan Guaranty Trust Co.
of New York

climate that becloud

are
a

should

sentiment

States

add

has

which

weather

has

United

reservations

outlook.

hesitation

Solutional ap¬

one

the

distinct

about the

basic disquieting factors in the economic

sound, bright economic future.

qualifier.
That is the fact that
an
appreciable segment of busi¬
ness

Brought to the fore

The mood of

in bad
disappeared in
began

not

good weather.

proach offered would have the partners of the 49th parallel unleash
the forces of world trade and combat anti-trade resurgence.

Taking

The

ECM,

international

and

banker suggests

tariffs by custom
nation

forming

combating

Mr. Alexander urges we in¬

cannot

afford

the luxury

of inflation in view of our

problem and vulnerability of our gold to foreign

prescribes keeping fiscally and monetarily sound, and,

come

the

mid-point in

this first year of a new decade, 1960
seems to have identified itself as
the year of great

expectations, not

quite realized.
Thus;

good
fact

far

very

good year, by

standards
except
those

any

which

initially
fact

that

our

half

hasn't been

breathless
a n

t i

now

a s

i pated

for

great
Certainly it has les¬
sened the danger of inflation, and
it may well have stretched out the
period of recovery and expansion,
and
therefore
perhaps
put
off
any

somewhat further into the future

of downward

re¬

adjustment.
By not having

pro¬

out.

The

and then.
some

elements

our

Unemployment remains

stubborn

certain

viewed

with

must

concern.

areas.

The

solid basis

rate

which

steel

pro¬

duction has gone on for the past
few months.
Also, some spotti¬
is

profits.

noticeable

corporate

All these factors must be

secu¬

The shadow of the great inter¬
national uncertainty hangs over

hopes.

our

once

As human aspirations
tumbling down

came

from

were

reminded

summit

last month, we
again how futile
it is to expect any easy casting off
of the burdens of defense

any

dependable truce in the cold
In

this

have

world,

uneasy

live

shall
tensions,

our

work in full awareness

our

them;

with

war.

tranquilizers would

somewhat

the new
monetary
situation and our place in it.
I
would
cite
the
change in this

realities

the

situation

the

world

second

the

significant characteristics emerg¬
ing in this period and vitally af¬
fecting our economic future.
new

parent

cent weeks

The net ef¬

monetary measures.

limiting factor
tion

strippiiig

away

able substitute for the dollar.

For

against the

limit,

but we

stand
a

shall avoid the dilemma which

the

central
where

traditional

nightmare' of

bankers

countries

quantities of inter¬
national reserves are lodged. Sec¬
ond, we must show the world an
unfaltering commitment to fiscal
and monetary soundness in order
to keep high the confidence of

To¬

to the
world money market.
exposed

reason, the very siz¬
holdings of United States
dollars by foreign owners, built

large

short-term

creditors.

Third,
position by
making substantial further prog¬
ress against our payments deficit
our

must improve our

the years of

our payments
be ignored in the
deliberations of monetary policy
makers in our country.
Those
holdings are redeemable in gold
to the extent that they are owned
by foreign governments or foreign

can not

before

Since

the
no

one

recession comes.

knows when it will

we must press this matter
vigorously and without letup.

come,

Present

estimates

are

that

foreign

We cannot afford

must work out

ing

this challeng¬
distinguished,
it

future

to me, by a few dominant
which
we
must

seems

Canadian

Securities

characteristics

keep

clearly

think
to

mind.

First,

tighter - fitting
framework.
Speaking

monetary
for

must accustom ourselves

somewhat

the

moment specifically of
conditions in the United States,
I

believe

our

ity,

are

Enquiries invited regarding Canadian
Government, Municipal and

Corporation Securities

pretty well out

long period of super-liquid¬
period

which

lasted

some

three decades, comprising depres¬

sion,

emerged

II with

Underwriters and Dealers in

Canadian Securities

Dominick Corporation of Canada
360 ST.

JAMES STREET WEST

and postwar.

war

from

World

War

greatly enlarged mone¬
tary structure. Only now has our
economic activity grown up to fit
it. The fitting process, unfortun¬
ately, has involved a considerable
amount of padding. This has taken
the form of cumulative price in¬
flation, more or less permanently
a

built-in.

Little

squeezed

out during

of business

Latterly

MONTREAL

of it

none

was

bankers bond corporation
Limited
Business Established 1912

44 King Street West, Toronto
kitchener

london

hamilton

Members of

The Investment Dealers? Association of Canada

the periods

The Toronto Stock Exchange

contraction.

have

been

fairly

successful in avoiding further in¬
flation.
Our circumstances make

private wire with

it imperative that we continue to
avoid it in whatever form—creep¬

ing, crawling,

galloping.

well-advertised balance

Dominick

Dominion

WALL STREET.

NEW YORK

difficulties

ments

experiment

little inflation

Our
-

pay¬

permit
even "a

and then."

New York Stock
American Stock

Toronto Stock

firmer discipline pressing
at home—reinforced by the

monetary

discipline

being

ticed abroad—is another

Exchange

feel

Exchange

suit

MEMB ERSi

MONTREAL

This

Members

MORGAN & CO. LTD.

not

with

now

STOCK

EXCHANGE

CANADIAN

STOCK

EXCHANGE

prac¬

reason

years

Exchange

will be wearing a snugger

monetary clothing in the
ahead. We probably should
expect
interest
rates to
move
within a range higher than we
became ccustomed to during most
of the past three decades.
What
was

considered

period
ered

will

nearer

high during that
probably be consid¬

normal.

But snugger

clothing does not mean

jacket

—

such

level

The

central

MEMBERS.

INVESTMENT

DEALERS'

ASSOCIATION

rates

507

PLACE

D'ARMES

banking system still

has flexibility
cost and the

MORGAN, OSTIGUY & HUDON LTD.

strait-

would not impede healthy growth.

tailor both the

availability of credit

to the needs of the economy.

our

payments this year will
to create conditions that would exceed pur receipts by something
between $2 and $2% billion. This
prompt such official owners of
dollars to present undue quanti¬ would be a deficit considerably
below last year's level — an im¬
ties of them for redemption.
In
Our
the event of another recession in provement but not a cure.
the United States, as the Federal goal must be a situation which
over
a
reasonable
period
ap¬
Reserve and the government au¬
Then we
thorities move to apply corrective proaches true balance.
view without alarm the year-tomeasures, they will have to con¬
sider carefully what effect their year fluctuations to either side of
Continued on page 10
actions may have on the standing
central banks.

The economic climate in which
we

ac¬

Must Avoid Recessions

able

deficit,

freedom of

We may never

And, from the knowledge that
it is there, we should take some
warnings.
First, we must do a
better job of avoiding recessions
—including avoidance of the ex¬
cesses that bring them on.
The
longer we can do this, the longer

this

up over

exists.

should know it is there.

monetary structure from outside
influences
during
those
years
when there was no widely accept¬

forces of

now

bump

the insulation which shielded our

re¬

straint when it judges that course
is indicated.
Nevertheless, a new

order of things is ap¬

strengthening of
foreign, currencies.
In this
strengthening we can read from
abroad the whole story of revital¬
ized production, aggressive sell¬
ing, and the checking of inflation
through use of bold and wise

day

that the Federal Re¬

still feels free to lessen

serve

the

many

fect for

Again, this does not mean a
straitjacket. We have seen in re¬

fatal.

instance, in the comparatively

modest

world

for

ties.

This is reflected,

rity, these coming years can bring
accomplishments, if we
are
alive to the possibilities and
alert to the dangers and difficul¬

and do

for

resources,

historic

turers is still sluggish in relation
to current sales.

natural

improved
Looking be¬
yond our own borders, we can see
opportunities
shaping for
new
breakthroughs by the free world,
matching in significance even the
dramatic strides made during the
past decade.
In the extension of
trade, in the building up of new¬
born or newly awakened economies, in the establishment
through economic progress of a

flQw of new orders to manufac¬

ness

boom, in other

situation
Henry C. Alexander

lamentation.

the next phase

gained
more

able to turn

are

True,

need

not, I
think, because

ongoing boom in Western Europe
is helping us.
The stock market
for a while was taking some sec¬
ond looks, but that's a rather good
thing for the stock market to do

The

first

have

for

ly, though not all that our fac¬

set

it.

may

basis

longed period of generally vigor¬
ous activity.
This is not guaran¬

tories

were

for

sounder

teed, but there are still promising
signs.
Our businessmen continue
to sponsor substantial programs
of plant modernization, sustaining
the
capital expenditures sector.
Consumers are buying confident¬

year,

words,

rich

eco¬

rising popula¬

creative technology,
financial structure.

avoiding recessions and excesses that cause them.
As

growth—

tion,

The mate¬

at hand for sound

are

nomic

exports by pricing ourselves into more markets, and he

balance of payment
claims.

restriction instead

trade

rials

Under
certain
circumstances,
however, that flexibility could be

cramped

currencies

of the world.

Redemption

The

Bright

for both our countries.

strict observance of most favored-

U. S.-Canada counter-bloc.

our

cautions

(1) suspension of increased

are

(2)

and (3)

principle;

crease

Recommended

unions;

"Super 60s" has been tem¬
pered.
Even so, the years of the
new decade hold a bright prospect

competition, the

export credit

and

Can

initial exuberance of

the

what both countries should do together and what

should do alone.

price

Future

Thus

warily circumspect view of emerging trade groupings, such as the

of the dollar among the

Vulnerable to World Gold

MONTREAL,

CANADA

The Commercial and Financial Chronicle

one

U. S. Chemical

Exports-

Other

City

business

likely to continue

Other

made

observations

changing

patterns

increasingly

severe

well

and

those that

this

by Mr. Wickersham, after describing the
of export sales, deal with: (1)

noteworthy
1920's and
11

i b

changes

since

the

These may

ted

principally to
the following:
( 1 )
The
world

r o

o r

Britain's

veloped
ing and
the

(2)

us.

"t-a-e-1."

with the advent of
II, we drifted away
traditional practice of

the

goods

our

the

market

ductive

The change of
credit

arising

out

the

existed

during World War II and

the postwar

ments,

conditions

which

period.

result

capacity

Europe

these

develop¬

policies of stock¬

pre-war

extending open ac¬
count credit, selling in local cur¬
rency
and settling forward ex¬
change to match collection expec¬
tations

disappeared

United

States

from

exporter's

the

condition

chemical

They

and

ous

ment

than

ever

probably

before,

vigor¬
equip¬

and

the

competition is
toughest
problem

the

is,

therefore,
has

only

been

natural

back to stocking
lengthening credit terms.
Thus,
we see that
selling conditions are
partially reverting to the tradi¬

branch offices in

tional.

bag

number of for¬

countries,

China

and

notably
Japan,
India,
where
we

However, exchange controls

re¬

main

stocked material and sold in local

throughout
large
under¬
developed areas of the world and

currencies.

prevent

exchange
provide
lars.

As sales

was

settled

conversion

fact, I

can

were

made,

forward

dol¬

remember in

free

conversion

in¬

than tenfold in 33 years and
than 6V2 times since before

World

War

Research

With

(source:

Stanford

Institute).

the

foregoing remarks as
background, let us now consider
of the

some

characteristics of

ex¬

port selling today.

the

than

area

can

time

mechanics, much

said

permits.

and

written

Moreover,

titudinous

details

promotional

methods, order processing, traffic
and credit work. However, an im¬
portant fundamental
mind

that

be
are

Firstly, through one's

own

sales

tical

Secondly, through local distrib¬
utors, agents, or authorized deal¬

return
local

standard

currencies

appointed

for

cipal

advantages

this

unless

ers

industries,

Prin¬

system

Use of distributor's local knowl¬

edge,

with

local

na¬

utors.

Support
from

and

one's

own

fices and field

stimulant effects
local branch of¬

(3)

direct

foreign markets and intelli¬
gence
channels
through
local

can

stability

My company has, at present, of¬
in Mexico City and
Europe,

and field representatives in South
America and the Far East.
These
have proved highly effective in

and

vary

between

even

fluctuate

tomers

the

different

in view of the

ping

out

high cost of ship¬

United

States

ports

compared with shipping out of
Europe and Japan. A good traffic
man, by developing cheaper ways
of
transporting goods overseas,
sometimes

can

make

the

differ¬

between

ence

being competitive
non-competitive in export mar¬
The

traffic

also

course,

ocean

ports of shipment and,
again, ability to find the
cheapest way to ship can contrib¬
ute materially to ultimate
pricing
here

the

goods

when

they

involved, especially

are

low

unit

States, and frequently
feel

one's

addition

lems

the

encountered

business, there
are

peculiar

following

business.

(4) World-wide
petition.

usual

are

the

prob¬

transacting
number that

export

are some

field.

producing countries of the world,
many of which have substantially
lower costs of labor and
than

ours.

so,

considerable

the

year

progress

them, export sales are
They must export to live
and will, so to speak, bend over
some

vital.

backwards to

secure

the order. As

result,

competition in prices,
terms of sale and contingent facil¬

other

insurance.

(5) Ocean freight rates.
The
high cost of shipping from United
States ports compared with
freight
rates out of Europe and Japan is

tending

price

exporters

out

of world markets where low
unit priced products are involved.

(6) Political and economic fluc¬
tuations.

These

can

ously
plans.

disrupt
They

affect

collections

the

customers

best

also

can

sound the credit

matter

and

are

sales.

The

country

growing

and

pecially

Latin

parts of Asia.

ly leads to

America

and

change in the product

areas

serious
are

pri¬

for

same

producers.

time, their

ing rise

now

a paar-

the

their industrialization

progresses, and they then become
customers

for

complex and

sophisticated products.
.While discussing the pattern of
chemical export sales, it is interon

Street, New York 5
Members

THE INVESTMENT DEALERS'
ASSOCIATION
OF CANADA

1910

A. L. Howard

standards of liv¬

Continued

TORONTO

produce

thus closing out

ANDERSON & COMPANY LIMITED

This very natural¬

LONDON

ex¬

sense

national

port basic chemicals

ket

dollars, especially in Asia

investors and dealers

SHERBROOKE

con¬

pride
throughout the world is resulting
in rapid local
industrialization, es¬

ex¬

However,

These

Inquiries welcomed from institutional

WINNIPEG

how

standing of one's

the

Canadian Securities

OTTAWA

sales

(7) The changing pattern of

and Latin America.

QUEBEC

seriously *

cerned.

their own,

marily due to continuing shortage
of U. S.

TORONTO

rather

violent and sudden, and can seri¬

has

number of countries,

world

obstacle to

MONTREAL

ma¬

Some countries which used to im¬

During the past

restrictions remain in large

Affiliate: Greenshields & Co Inc—Business established

raw

Moreover, to

Local currency restrictions

particularly in Europe.

Canadian

com¬

pattern of U. S. chemical exports.

been made toward freedom of

Teletype: NY 1-3708

sources

the

export business
competing with all the

are

examples:

change in

Telephone: WHitehall 3-9525

final

price quotation in order to get the

nationalism

Problems

64 Wall

has to

one

towards

way

port sales.

The

Inc

We
mar¬

ket prices that exist in the United

priced

chemicals.

(1)

(N.Y.)

cus¬

market.

same

helping our distributors, stimu¬
lating their efforts, and keeping ities is most severe in the export
field.
In some countries, for ex¬
us abreast of local
developments.
Conduct of traffic and trans¬ ample, the United Kingdom and
Western
Germany, the govern¬
portation matters is a vital part
ment plays a part and supports
of
export selling and
is today
exporters by supplying credit and
more
important than ever before

and controls.

Greenshields & Co

uni¬

widely between different markets

terials

men.

fices

abroad.

contact

with

branch offices and field

Lack

These

men.

Maintenance

from

of origin over those
another, .and they often as¬
prohibitive proportions.

do not encounter the stable

contacts and influence.

Identification

goods

formity in prices and credit terms.

and

are:

favor

country

from
sume

field

promotional,

technical and liaison work.

branches

directly into dollars.
Consequently, it is not yet prac¬
to

offices

branch

own

four

currencies

sales

our
men

basic sales routes:

local

discourage imports of
goods, protect local

variation
of
the
second
route,
namely, selling through exclusive
distributors abroad, supported by

borne

there

revenue for the local gov¬

ernment,

one

department is,
responsible
for
moving goods from inland plants

do not intend to go into the mul¬

provide

In Allied Chemical, under pres¬
ent world conditions, we prefer a

kets.

Mechanics

(2) Local duties and restrictions
imports. These are designed to

non-essential

that

growing trend
abroad and to

products

$160,000,000 in 1925
$249,000,000 in 1940, and to $1,631,000,000 in 1958, that is to say

exporter has to face. It

example, in the 1920's
and 30's, my company, in common
with others, maintained its own

For

from

re¬

are

their

the

today

modern

pressure

there

industries

are

radically
changed. The European and Japa¬
nese

and

creased

and

has

Fourthly, U. S. exports of chem¬
icals

the pro¬

wholly closed to

markets.

ourselves

Traditional Selling Returning
This

built.

abroad,

eign

partly

Japan.

attitude to¬

is in¬

Thirdly,
large
areas
of
the
world, such as Eastern Europe and
China, are for political reasons

and

coming

pretty much to

due to the war's effect
Wesley Wickersham

variably most suitable for others.

We could do this and get away
we had the
export

market

dur¬
since

what is most suitable for

with it because

de¬

market

tools.

adjustment of these
techniques is required to secure
satisfactory results in export sell¬
ing.
We should not assume that

dol¬

weight

sometimes

remit¬
S.

races

War

relied

seller's

ing

was

spelled

other

War.

wards

tael
was

taking

Second

World

and

from

sus-

and

United States sales techniques are
excellent and highly effective, but

However,

September,

1931

York

The

World

gold payments
in

for

New

lars.

Great

pension

each

converted

finally

against

silver

con-

which

traded

tance

i g i n ated

with

Shanghai taels, Hongkong dollars,
Tientsin taels, Hankow taels, and
Newchwang
taels.
These
were
and

wide

exchange

with whom one deals,
ability to adapt one's deal¬
ings accordingly can contribute
greatly
to
successful
selling.

and

Thursday, June 30, 1960

Fourthly, direct to consumers
independent importers abroad.

paper

and

China alone selling in several dif¬
local
currencies
such
as

independent

Secondly, an understanding of tionals.
psychology,
manners
and
Limitation of credit risks, as¬
methods
of the
various peoples
suming selection of sound distrib¬

ferent

then

special¬

through

U. S. exporters.

the

companies to export know-how and export capacity.

1930's.

necessitate

I will go into greater
regarding some of the prin¬
cipal problems.

competition coming from Europe and Japan; (2)
ECM; and (3) continuing trend of

The character of the export busi¬
ness
has undergone some rather

detail

problems

the trade barrier problem of the
U. S. chemical

par¬

ized experience and versatility in
the conduct of business.
Later in

advanced and complex.

are

are:

encountered

increase—particularly for products characterized by low labor and

transportation costs

are

Firstly, the multiplicity and va¬
riety of problems and situations

The six-and-one-half fold rise in U. S. exports of U. S. chemicals and
seems

which

features

Thirdly,

proceeds for

ticularly important as background
material in considering the export

By Wesley Wickersham,* Vice-President, Allied Chemical Corp.

related products since before World War II

the

directly through so-called switch
or triangular transactions.

Problems and Trends
International Division, New York

utilize

can

local expenses and investment, or
can
convert them to dollars in¬

M. D. Cox

J. R. Denton

page

Volume 191

Mr.

Mrs.

Investment

Eric

Morse,

IV.

York

The Commercial and Financial Chronicle

The Honorable Onesime Gagnon, Lieutenant-Governor of Province of Quebec; Norman J. Alexander,
James Richardson & Sons, Winnipeg; President of the Investment Dealers' Association of Canada;
In rear, Gabriel Taschereau, ADC to Lieutenant-Governor

of the
& Co.,

Pitfield & Co., Ltd., Montreal, newly elected President
Canada; Mr. & Mrs. James J. Lee, W. E. Hutton
of the Investment Bankers Association of America

Association

Dealers'

New

Number 5964

President

City,

CAZAVAN, MARCEL*

BRAULT, PAUL H.

In Attendance at Convention

Brault & Chaput
Montreal

Societe

BRAY, GEORGES*
BELANGER,

ALEXANDER, HENRY C.

Halifax

L. L.*
James Richardson &

ALLMAN, E. J.*
Annett & Company

Greenshields

Annett

Ltd.

Company

ANNETT,

Association
n

Inc.

Pitfield

Co.

Ltd.

Bond

Corp.

Bache

Pitfield

ALBERT*
Oscar Dube & Cie Inc.

Montreal

AZZARELLO, S. A. J.*

Toronto

DAVIDSON, MISS J. M.
Financial Counsel

Toronto

Anglo-Francais Ltee.

Montreal

CASTLEDINE, V.

BOULET,

Daly, Harvey & Cooper

COTE, LUCIEN*
Credit

DEMPSEY, J. B., II

Dempsey Canadian Newsletter

CREIGHTON, D. B.

S.*

Castledine & Co. Ltd.

A. Daly & Co. Ltd.

DALY, R. O.*

DOUGLAS*

Montreal

Casgrain & Co. Ltd.

Nesbitt, Thomson & Co. Ltd.

Cleveland

Continued

Montreal

Ottawa

Toronto

Canadian Dow Jones Ltd.

Toronto

Limited

Wood, Gundy & Co. Ltd.
Montreal

CASGRAIN, R. B.*

Quebec

Osier, Hammond & Nanton Ltd.
Vancouver

DALY, R. A., JR.

COLVEY,

Ltd.

Quebec

Greenshields & Co. Inc.

BOULET,

Toronto

C.*

J. C. Boulet Limitee

J. M.*
MacTier & Company Ltd.

BAIRD,

Quebec
BOUTIN, R. L.

Montreal

BAKER, T.

Nesbitt, Thomson & Co. Ltd.

H.*

Montreal

Ltd.

Ross, Knowles & Company

BRAULT, J. M.*

Toronto

Brault & Chaput

S.
L. G. Beaubien & Co. Ltd.

BEAUBIEN,

BRAULT, MAURICE*

Montreal
Mr.

ROYAL SECURITIES CORPORATION

Montreal

Limited

Garneau, Boulanger Limitee
&

Quebec

Mrs.

Head

244 St. James Street

Office:

West, Montreal 1, Canada

Specializing in

■.

Province

Branches in

Ontario

principal Canadian cities.

and

Underwriters and Distributors

Hydro

Electric

Commission

Power

Ontario
Canadian Government,

Municipal,

BONDS

Public

Utility and Industrial Issues

Mason & Crysdale
ROYAL SECURITIES COMPANY

LIMITED
Members:

Members

The Investment Dealers' Association

of Canada
r

of Montreal, Canadian, Toronto,

Winnipeg and Vancouver Stock Exchanges

•
302

BAY

STREET

TORONTO

ROYAL SECURITIES INC.

EMPIRE 6-8961
Peter S.

Bellman H. Mason

Marie D. Saunders

Crysdale

37 Wall

M.*

DAKIN, WARREN A. JR.

COLE, J. N.*

Gundy & Co. Ltd.

Montreal

York

Toronto

Nesbitt, Thomson & Co. Ltd.

Securities

Wood,

Midland Securities Corp. Ltd.

Co.

Crysdale Ltd.

CUNNINGHAM,

Guaranty Trust Co. of

COCHRANE, A. C.*

Bankers Bond Corp.

Ltd.

New

Toronto

New York

Toronto

Co.

Mason

Devoir

Morgan

CAMERON, I.

BOUDREAU, J. E.*

Armstrong

Toronto

CRYSDALE, P. S.*

MARCEL*

CLOUGH, WILLIAM S.

Ltd.

Toronto

Royal Securities Corp. Ltd.

Montreal

ARMSTRONG, A.*

Graham,

Nesbitt, Thomson & Co. Ltd.

Montreal

F.*

CADMAN J. L.*

BORLASE, A. E.*

Montreal

♦Denotes

Co.

Toronto

ARBOUR, J. M.*
C.

Montreal

Bongard & Company

Toronto

BONGARD, G. R. P.*

Investment Dealers'

CROOKSTON, J. I.*

of Canada

CLEMENT,

Ltd.

BURLEY, C. C. Jr.*

Montreal

Toronto

Co.

Winnipeg

Toronto

BLAIKLOCK, D. M.*

ANNETT, J. W.*

Dominion Securities Corp. Ltd.

Globe & Mail

York

Beaubien

BULGIN, J. D.*

BLACKMORE, R.*

ANASTASIA, A. A.
Dow Jones & Co.

Bankers

Toronto

Investment Dealers' Association

Cochran, Murray & Co. Ltd.
Toronto

Ottawa

BRUTON, M.

Brawley, Cathers & Co.

Montreal

New

Sons

BELSHAW, J. A. M.*

Toronto

ALMOND, L. F.

Bank

Creighton & Co. Ltd.

CRONYN, J. B.

A.*

Bullock Ltd.

CLARK, A.*

Montreal

Toronto

Ltd.

D. D.

Montreal

BRUNELLE, GUY*

BELL,

Winnipeg

CREIGHTON, D. D.*
Inc.

Montreal

Greenshields & Co. Inc.

Nesbitt, Thomson & Co. Ltd.

James Richardson & Sons

Calvin

BROOKES, J. E.*

BELL, J. E.*

York

ALEXANDER, N. J.*

Placements

CHIPPINDALE,

Gairdner, Son & Co. Ltd.
Quebec

Montreal

New York
New

J.*

Inc.

Belanger

Morgan Guaranty Trust Co. of

Montreal

Sigreet, New York City 5

li:

page

Commercial and Financial

The

Mrs.
Mr.

I.
&

Toronto; Mr.
Arbour, W. C.

Heggie,

Mrs.

& Mrs. S. J. Langill, W. C. Pitfield
Pitfield & Co., Ltd., Montreal; Mr. &
Pitfield
& Co., Ltd., Montreal

Mr.

& Co., Ltd., Montreal;
Mrs. E. F. C. Kinnear,

Mr.

Mrs.

William

Lagueux & DesRoches Ltee.

DEROME, J. L.*
McLeod, Young, Weir & Co. Ltd.

Clarkson,

Gordon

Wood, Gundy

Co.

Ltd.

McLeod, Young, Weir & Co. Ltd.
The

DINNICK, W. S.

Financial

A. E. Osier Co. Ltd.

Toronto

FALARDEAU, GEORGES

Toronto

DLOUHY, DOMINIK*

Gendron

Inc.

J. A.*

Garneau, Boulanger Ltee.

Quebec

GAGNON, The Hon. ONESIME

FARRILL, F. B.*

"and

Dawson, Hannaford Ltd.
Toronto

DOW, ALASTAIR
Toronto

Star

•Denotes

Bache
Mr.

G.*

gatehouse, d. h.*

Co. Ltd.

GRIFFITH, R. G.

Royal Securities Corp. Ltd.

James

•

Prince

Montreal

•

Richardson

Sons

Albert

GUY, CLAUDE*

Co.

Ltd.

Brault

Chaput

Montreal

gibson, J. d.*

HADDON, T. W.*

Gairdner, Son & Co. Ltd.

Nesbitt, Thomson & Co. Ltd.
Toronto

glasgow,

HAGGAN, REEVES

l.*

Son

Toronto

Co.

Ltd.

Canadian

Montreal

Gairdner,
-

Wood, Gundy

Royal Securities Corp. Ltd.

GAIRDNER, J. S.*

Co.

Toronto

Mrs.

Mme. P.

Quebec

FINDLEY, A.

Toronto

GRIFFIN, H. S.*

Montreal

Quebec

La Maison Bienvenu Ltee.

Montreal

Investment Dealers' Association

Grant Johnston
-;r,

GAGNON,

& Cie Inc.

Quebec

gee, hartland w.

Wood, Gundy & Co. Ltd.

Times

Montreal

Grenier, Ruel

Montreal

FUNSTON, R. O.*

ERTL, E. C.

Toronto

Societe

de "Placements

Dawson, Hannaford

Inc.

Ltd.

HANSON, MURRAY
Investment Bankers Association

fry & Co. Ltd.

of America

Toronto

Washington

goodhand, d. e.*

Equitable

HANSON, T. R.*

Securities Canada

Limited

Hanson, Richardson & Co. Ltd.
Toronto

Toronto

HARTNEY, J. J.

gordon, lamont

LIMITED

Corp.

Toronto

Montreal

McLeod,Youmg,Weir & Company

Broadcasting

HANNAFORD, D. C.*

godin; f. h.*

goldring, C. w.*

Nesbitt, Thomson & Co. Ltd.

Financial

Montreal

Toronto

goulding, e. d.

Counsel

HAWKE, J. H.*

Goulding, Rose & Co. Ltd.

GOVERNMENT/MUNICIPAL

CORPORATION

50 King

AND

Canadian

276 St. James Street West

Street West

Montreal, Canada

Telephone! Victor 5-4261

Telephone! EMpire 4-0161

Kitchen*

Toronto

SECURITIES

Toronto, Canada

.Ottawa

Gairdner, Sons & Co. Ltd.

Toronto

DEALERS

Winnipeg

London

Vancouver

Hamilton

Quebec

Sherbrooke

Windsor

Edmonton

Government

Calgary

Municipal

New York

and

Corporation Securities

McLeod,Young,Weir & Ratcuffe
MEMBERS OP THE TORONTO STOCK EXCHANGE

MONTREAL STOCK EXCHANGE

CANADIAN STOCK EXCHANGE

STOCK

ORDERS

EXECUTED

ALL

EXCHANGES

Isard, Robertson

and

Co.

limited

Co.

Halifax

A.*

Montreal

Toronto

GRENIER, J. N. E.

Ltee.

Toronto

Nesbitt, Thomson & Co. Ltd.

Matthews & Co. Ltd.

DINNICK, J. S.*

Bienvenu

gassard, h. l.

Toronto

FULLER, J.

EDWARDS, J. C.*

Vancouver

Maison

Investment Dealers' Association

S.*

Montreal

FRASER, MISS G. M.

Leclerc, Incorporee

Montreal

GRANT, J.

garrett, w. l.*

Montreal

Houston, Willoughby & Co. Ltd.
Regina

DINGLE, H. H.*

Peat, Marwick, Mitchell

Forget & Forget Ltd.

EBBELS, W. D.*

Rene-T.

Montreal

La Maison Bienvenu Ltee.

Co.

Toronto

garneau, g. h.*

Mills, Spence & Co. Ltd.

Montreal

Toronto

Montreal

GRANDCHAMP, A. W.*

Bank of Canada

FORGET, COL. MAURICE*

Securities

Limited

gammell, h. g *

& Co. Ltd.

Armstrong

Graham,

Corp. Ltd.

Toronto

DUFOUR, ROLAND

DILWORTH, R. W. E.*

Securities

Flemming & Co.

Montreal

Lagueux & DesRoches Ltee.
Quebec

Ames

FLEMMING, PAUL R.

Belanger Inc.

DesROCHERS, PAUL

Montreal

Quebec

GRAHAM, F. R. JR.

Hamilton

A.
t

DUBUC, JULES P.

Montreal

Dominion

FISHER, P. M.*

DUBE, RAYMOND

Thursday, June 30, 1960

Co., Inc., Montreal; Phil N. Holtby, Doherty, Roadhouse <fi Co.,
Pepall, Bell, Govtinloch <6 Co., Ltd., Montreal; A. L. Howard,
& Company, Ltd., Toronto

gallagher, t. h. l.*

Toronto
page

Anderson

Deacon Findley Coyne Ltd

from

Mrs. Bruce Kippen, Kippen &

Toronto;

FINDLEY J. R.*

Continued

Chronicle

King Street West, Toronto, Canada—EMpire 4-0161

Members

Investment

Dealers'

Association

Canada

Huron & Erie Building

159 Bay Street

London, Ontario

Toronto, Ontario

Volume

Mr.

Mrs.

Mr.

191

Mrs.

Number 5964

The Commercial and Financial Chronicle

William
Bob

John

Ebbels, Houston
Willoughby & Company, Ltd., Regina;
Wadds, McLeod, Young, Weir & Co., Ltd., Toronto; Mr. & Mrs.
Dinnick, McLeod, Young, Weir & Co., Ltd., Toronto

HAYMAN, J. L.

Devon Smith,
Mr. & Mrs.

The Telegram, Toronto; J. Ross Oborne, Nesbitt, Thomson & Co., Ltd., Montreal;
H. M. Cunningham, Wood, Gundy & Co.,' Ltd., Quebec;
H. S. Griffin, Wood,
Gundy & Co., Ltd., Halifax, in background

KERR, J. W.*

Goulding, Rose & Co. Ltd.

Trans-Canada

Toronto

HEBB,

R. C.*

Dominion

KIMBER,

Securities

Corp. Ltd.

Halifax

Mills,

Pipe Lines Ltd.

B.*

Spence &

Co. Ltd.

Montreal

HEGGIE, I. C.*

KINNEAR, E. F. C.*

W. C. Pitfield & Co. Ltd.

Toronto

Montreal

HENDERSON, J. P.*

Pitfield

Co.

Ltd.

KIPPEN, W. B.*

Calvin, Bullock Ltd.

Kippen & Co. Inc.

Montreal

HILL, J. E.*

LAFLAMME, ANDRE
E.

Laflamme

Royal Securities Corp. Ltd.

Montreal

Ltee.

Quebec

HOCKIN, T. M.*

LANE,

Isard, Robertson & Co. Ltd.
London

Toronto

Graham,

Armstrong

Securities

Limited
Montreal

Toronto

Anderson

Co.

Ltd.

Toronto

L.*

L'Action

Co. Ltd.

Quebec

Toronto

Catholique

R. J.*

LAWRENCE,
&

Brennan

Co.

Ltd.

Moncton

Canada

ijimited
Toronto

LEBAOND,

HOWE, M. Jv*

Crang & Co.

Securities

Equitable

HOWARD,. REGINALD *

to suit

ROGER*
Co. Ltd.

G. Beaubien &

Montreal

Toropto
HOWES, D. L.*
Harris

J.*

Pitfield

LANGLOIS, GERARD*

HOWARD,

LANGLEY, A. J.*
Dominion Securities Corp. Ltd.

Doherty Roadhouse & Co.

Montreal

POLTBY, P. N.*

Nesbitt, Thomson & Co. Ltd.

LANGILL,

M.*

HOLLAND, E

Partners

Ltd.

LEE, JAMES J.*
Investment Bankers Association
of America

Toronto

New York

HUDON, MRS. MARQUITA
Investment Dealers' Association

Ames &

Co.

Ltd.

HUTCHISON,

T.*

Cochran, Murray & CoJ Ltd.

Montreal

MacLEAN, G. F.*
Harris & Partners

Toronto

Quebec
LOVE, J. W.*
Dominion Securities Corp. Ltd.

London

J \COB,

Ls-P.*

Corporation de Prets de
Quebec

HUGHES, J. O.*
A.

LETARTE,
La

Montreal

B.*

Ltd.

Toronto

Wood, Gundy & Co. Ltd.
MacMURRAY, J. A.*

Hamilton

JAFFRAY, T. P. N.*
Dominion Securities

Eastern

Corp. Ltd.

Toronto

Co.

Securities

Securities of the United States
Government and its

The

Agencies

MANTHA, LIONEL*

State, Municipal, Revenue and Housing

McNeil, Mantha Inc.

JENNISON, G. L.*

Wills, Bickle & Co. Ltd.

Toron|o

Securities

Montreal

Credit Interprovincial Ltee.
Montreal

Dominick

Beaubien

Corp. of Canada

Montreal

Co. Ltd. *

E.*

McLeod, Young, Weir & Co. Ltd.

Nesbitt, Thomson & Co. Ltd.

Gairdner, Son &

Montreal

Securities

Montreal
Mr.

Co. Ltd.

Mrs.

Pittsburgh

•

DIgby 4-1515

Chicago

Philadelphia

Company Stocks
San Francisco

Reconstruction and

Development

Canadian Securities

External Dollar Securities

Nesbitt, Thomson & Co. Ltd.
Toronto

NEW YORK 5

Cleveland

Securities of the International Bank for

McELHINNEY, J. d.*

Corp. Ltd.

Boston

•

Bankers' Acceptances

Toronto

Dominion

15 Broad St.

Casualty, Fire and Life Insurance

Mcdonald, f. J.*

tEATOR, A. S.*

Corporations

Bank Stocks

Montreal

KAINE, W. D.*

CORPORATION

Industrial, Public Utility and

Railroad

Montreal

MARSHALL,

S.»

JOHNSTON, A.

FIRST BOSTON

Bonds, Preferred and Common Stocks

MARCHAND, R.*

JOHNSON, GRAHAME*

•Denotes

Ltd.

Saint John

Continued

page

Underwriter-

QjUtrdutcr

deafer

<J/twedtment S^ecuritied

Chronicle

and Financial

The Commercial

Thursday, June 30, 1960
w

Jim

Royal Securities

Cadman,

Ltd.,

poration,

Corporation,

Jack

Montreal;
John

Limited,

Wright,

Royal

Penny,

Toronto;

Carlile

Securities

Edgar

McCarthy,

Corporation,

Hill,

Ltd-,

Royal

Calgary;

Securities Cor¬
Mr.
& Mrs.

tion

occur.

When

«>

—

trade or aid
especially important

concerning

—which

are

because

balance-of-

our

payments -problem, we trust our
friends among the nations of the
world will see their stake in our
problem as we have tried in the
past to see our stake in theirs. I
know our efforts to reduce the
foreign payments deficit are un¬
derstood, in Canada, because there
is

and

payments

here too

problem

it is being widely discussed.
the
basic
causes
of the

While

problem

are

different

Balance

achieve

it,

crucial task for both of

time.

selves

emphasize its
To my mind,
they constitute the third of the
features
which
distinguish
the
period into which we are heading.
At the same time, there are hope¬

the

same

way—namely,

from

substantial

strengthening of their ducers in

respective

positions

exporters

of goods.

us—but

particularly the United States
suffer

of
us

being

high-cost

alone.

have priced

say we

out

into

many

markets.

productivity is to be swallowed up
by an increase in wage rates —
sometimes, indeed, swallowed up
in advance.
Nor is it likely to
happen until we stop wasting our
human

way

lines both

many

people

resources

tolerating

from

all

the production

the

line to

the executive suite.

hear

suggested

Dangers

pro¬

Guarantee

Besides

our

Credit

Competition

competing

quality, in service,

and

in
in salesprice,

The regional

to share. Some are even be¬

even

risk.

business

the

urgent

right
that

kind

latter

situation.

new

prudent ability of the
exporter to take on as a calculated
the

yond

result, rather
being given
to the many suggestions
a

attention

now

have

been

made

what

those
adjustments
should
all, they can form
be
borne
only by governments take.
It has been proposed by some
using the massed resources of
be

are

their

borne

taxpayers

ports as

to promote
national objective.

Governments,

doing

are

our own

this

two countries should

our

spond by forming
American

included,

variety

that

ex¬

trade

include most

ize

Hemisphere.

the

unreasoning

credit

times

becomes.

the

dangers of

are

It is

distinction

have

those

and

that

are

not

about

countries

the

future

exporters.

one

which

must

States

eign

sell

markets.

ability of
and

their

This

the

stroke

that

paths

trade

bloc

either

our
new

conciliation

taking

would

not

Canada

the

larger

way

States to respond to the Challenge
of

regionalism.

afraid,

would

danger

coun¬

that

greatly
is

so,

inherent

regional movement

emer¬

—

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

regional trade groupings,
like the European Common Mar¬

the danger

sealed

off,

one

from

another,

Brawley, Cathers

Co,

and assistance from

Members

Investment Dealers* Association
of Canada
Toronto Stock

request.

Exchange

Wood, Gundy & Co., Inc.
4

Wall Street, New York 5

CANADIAN

Affiliated with

GOVERNMENT-MUNICIPAL-CORPORATION

Wood, Gundy & Company Limited

SECURITIES

Head Office
36

Montreal

King Street West, Toronto, Canada

Winnipeg

Ottawa

Vancouver

Kitchener

Halifax

Quebec

London

Hamilton
CANADIAN

Regina

London, Eng.

Edmonton

Calgary

New York

Victoria

BANK

the

that parts of the free world may

gence of

increase

—

for

United

the

any

mistake.

be of assistance.

Private Investors

one

European

—

United

the

Creating yet another

goods in for¬
is

them.

believe

these

affect, for better

for worse, the
tries like Canada
or

master

for

force has arisen in world trade

other

between

shouldn't

reasons

that

the

the only

there

recommendations

try to attach ourselves to

st all.

Conversely,

combinations, or even to both —
presumably after having achieved

that

should be taken by business, those
that should be taken by govern¬

ments,

been

all of the Western

to lose

risks

re¬

North

Sometimes

some¬

easy

among

ex¬

scramble

competition

own

suggestion is broadened to
provide for a grouping that would

—

that there

our

bloc.

that

through loans, insurance,
and guarantees.
We should real¬
ways

concern

holding

movement has

standpoint of creditworthiness, or States—find themselves with less
too
long in terms of time, for time than they had counted on to
commercial banks to assume or work out their adjustments to the

are,

can

from plan stage to action
determines
a
seller's
ability to stage with surprising rapidity. As
land the order.
Many of these a result, the "outsider" countries
risks are too broad
from the —notably Canada and the United

competition
and
credit
competition, formidable as they

securities,

Challenge

passed

Price

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

European Free Tradev

Regionalism

to get into some markets is
to tend our way in. The willing¬
ness
to
take
credit risks often

be taken

Company Executives—

way

cess

Export

MacGillivray, Ltd., Halifax;

Responding

only

the

that

Area.

frequently

bankers

credit.
it

are

E. D. Goulding,

ket and the

faced
terms of

manship, our exports
with
competition in

which

—

comparison with many
competitors.
This pushes
more and more into the posi¬

inefficiencies

deliberate

solution of those

the consequences take a

cream

won't be easy. It won't be possible
at
all
if every increase in our

I must
special difficulties.

form, I believe both our countries
must find the solution principally

enough of it.

export
markets.
Some say we have not.
Quibbling of this kind is both
futile
and
negative.
We should
be looking for ways to price our¬

But,

here, and ful roads toward
different difficulties.

live

isn't

Some

at this

ourselves

the

This
satisfactory situation —

can't

There

fundamental.

submit,

not.

experiencing
a
notable improvement in export
volume
during the past two or
three quarters.
Some of this is
solid progress, but scfme^gsuUs
from special and temporary^lrafctors.
The improvement we need
is broader and

exporters,

quantities

When demand settles down.

We both have been

measures

propose

whether

large

selves, but left out of the market

Really Improving Our Export

naturally will continue

that

marginal

sell

A New World Trade Force
Continued from page

Brookes, Greenshields & Co., Inc., Montreal; S. E. Spafford, Cornell,
Tom
Hockin, I sard, Robertson & Co., Ltd., London, Ont.;
Goulding, Rose & Co., Ltd., Toronto

able
goods
when the world is booming and
other
countries
are
using more
than they can produce for them¬

Canada and America Face

zero

Jack

Jjpronto

Ltd.,

*5*

COMMERCE

EMPIRE

3-8821

TORONTO

BUILDING

Volume

191

Number 5964

The Commercial and Financial Chronicle

•*

L. Jennison,
Wills, Bickle & Co., Ltd., Toronto; 'William G. Pepall, Belt, Gouinlock & Co., Ltd.,
Montreal; Mr. & Mrs. H. H. Dingle, Wood, Gundy <£ Co., Ltd., Vancouver; Mrs. G. L. Jennison;
Mrs. William
G. Pepall

Mr.

Mrs. G. H. Garneau, Mills, Spence <fi Co., Ltd., Montreal;
Belanger, Inc., Montreal;
R. L. Boutin, Nesbitt, Thomson
Mrs. D. C. Hannoford,. Montreal

—

trade

wave

new

dis¬

tendency,

crimination.

risk

does

customs

union

been

widely

which
applauded

GATT Will

That

Clue

avoid

their

must

show

mination to

The

under

General

the

on Tariffs and Trade
give clear signs of which
things are going.
For the

Agreement

can

should

in
us,

achievement
in

ance

first time the six countries of the

bers of

Common Market will be bargain¬

alone is

ing

not

group is

used

walls against the
On

side

this

bricks

have

build

unit—a unit, by the way,
which accounts for approximately

must

higher

the

The
in

tent, North American enthusiasm
for the idea was based on its im¬

traders.

outset.

idea

our

two

negotiations

And

vital.

Traditionally

be cru¬

can

stake

our

them

both have

both

exerted

have

strong world influence in the di¬
rection of more active trade. This,
I

convinced,

must

eventual elimina¬
barriers, with the
promise of greater productivity,
higher living standards, and ex¬
panding markets for
our
own
goods. We hoped—and still hope—
that the possibility of an opposite
and

play

with

the

must continue to

—

role
and

positive

we
we

pro¬

not with sniping counterpunches. Confronted by new and
powerful
trade
groupings,
we

tion of internal

insist

lated

tials

Have you

realize
those

the

best

groupings

questions

merely

international

but

levels.

static

idea;
be

must

terms

any

the

this

to these

ends,

suspension
which

rules

at this time.

observance

bloc

we can

customs

would

can

require

whole.

for strict

press

the

most-favored-

principle by

each

trading

firmly

can

it rears its head, even
may

victim.

not

the

immediate

can

give

that it is

our

moving

trade just
the

fully and

cooperation

our

hopes
the

from

the

for

should

balancing of values will

bargaining.

Trade

delicate

the

most

plomacy in the

same.

looms

areas

Exporting Plants Provide No
Solution
I

have not spoken at all of

principal

the
If the regional
disappoint us,
among

America
meet

means

thus

the

by which

far

has

challenge

Guide

This has
been
the
turn
out
to be
only a trade blocs,
by individual
companies,
glorified form of the old protec¬ drive
tive game, then we might have to especially in the
United States,
devise counter-measures.
But, to set up production in the Com¬
under
present
conditions,
any- mon Market, or in the Free Trade
thing smacking of retaliation Area, or in each. Both the threat
tariff discrimination
and
the
would be provocative and ill-ad- of
to
reduce
costs
have
vised.
Instead, our stance should need
be one of active and unmistakable prompted this trend. For individ¬
concern,
expressed through ag¬ ual companies it has represented
logical business strategy. We can
gressive, relentless negotiation.
If

negotiate, we must
to give as well as to
It will not be easy to find

are

be prepared

in which

areas

stantial
out

make sub¬

can

further concessions with¬

expect

see

good

deal

taxes

affecting

your

By itself, however, this ap¬
proach is not an adequate answer
to

trade

than it

regionalism,
an

Continued

casing pain to industries that

any

page

STOCKS

MARKETS maintained in

or per¬

sonal interests in Canada. These in¬
clude Federal and Provincial taxes,
and
to

branches and subsidi¬

Stock orders executed

aries, investment companies and oil,
natural gas and minerals.
To obtain your copy,

business

write

letterhead to

Exchanges,

our

DIRECT

London,

BRANCHES

O^icc: TKoittneal

CANADA, U. S., GREAT BRITAIN
EXCEED $3,000,000,000

RESOURCES

•

BELL

AND EUROPE

Eng.

TORONTO,

SYSTEM

Member

EXCHANGE

Telephone

Ottawa

Calgary

800

WIRES

MONTREAL,

VICTORIA

TELETYPE

AND

request.

OTTAWA,

WINNIPEG,

HALIFAX

1-702-3

Stock

American

Exchange

Boston
___

St. • SAN FRANCISCO: 333 California St.
Representative's Office, 141 West Jackson Blvd.

Two Wall

Wead

PRIVATE

Associate

Headquarters:

Halifax, Toronto, Winnipeg, Calgary, Vancouver

Special

Dominion Securities ©rpoeatkmt

BRANCHES IN ALL TEN PROVINCES

NEW YORK:

quoted

Montreal

0*HCuU'd 'piXdt 0W

CHICAGO:

net New York markets

CALGARY, VANCOUVER,
•

District

the Montreal and Toronto Stock

nearest

opment Department, Head Office.

on your

U. S. office, or to the Business Devel¬

Bank

all classes of Canadian external

and internal bond issues.

special tax situations with regard

Canadian

Halifax

Canadian

PLACE,

WHitehall

Affiliate-—'Member
and

NEW

Canadian

Stock

YORK

4-8161

Toronto,

Exchanges

Toronto

Montreal

Winnipeg
Montreal

adequate solution to

major Canadian

business

of it.

Canadapublished by Canada's
First Bank, includes a survey in lay¬
men's language ofthe

regional

should

BONDS

Business

the

North

moved

in CANADA?
"Your

di¬

good

Taxation...

one

just ahead.

years

poten¬

and

needed at every stage of our trade

developments

occurred

European nations.

clear

intention

toward

our

have

take.

keep

liberal
fast

though

And

assurances

early

that

resist trade discrimination whereever

with

outcome

member nation to raise tariffs

nation

would

movement

means

urge

istic

to the European
have the look of

retaliation, of expecting the worst
from Europe and meeting
it in
advance

con¬

concept

our

counter-bloc

response

groups

United

the

and

form

We do not have reason to abandon

Balance

higher
a

bal¬

balance

Canada

For

their

trans¬

already feel they have legitimate
grounds for complaint.
A high
degree of discernment and a real¬

so.

States

willing¬

our

partners? enables

Mrs. Jacques Belanger,
Ltd., Montreal;

Mr. &
Co.,

calcu¬

measures

trading
do

growth.

grams,

must

not

our

trade

union

countries

"played the field" as multilateral

plications for political harmony in
Europe. But we also emphasized
the favorable trade aspects—the
lowering

these

cial.

For

role

of the free
Canada and

combined.

United States

the

trade

for Europe from the
my part, personally,
I have consistently joined in the
cheering. To a considerable ex¬
group

proportion

same

world's exports as do

Atlantic,

individuals

cheered

as a

the

world outside.
of

and

governments
alike

all to the good.

dismantled

the

way

deter¬

to accept more of its goods
exchange.
We must, each of
seek as a national goal the

down the walls between the mem¬

But

dangers.

continued

increase and broaden

ness

actions,
stantly

toward

worst
our

goods to the world,

approaching the
forthcoming

test.

negotiations

become a step
free
trade,
back
protectionism.
Tearing
it

hope

time

from

away

Offer

has

idea,

giant step in the direction of freer
trade, can indeed be that. But, if
perverted,

away

external

trade—our resolution to sell

The

exist.

from
pol¬
materialize.

icy, would never

pretend that

not

pulling

liberalism

trade

It would be idle to

this

11
•

Vancouver
Victoria

and

The Commercial

Mr. & Mrs. J. C. Edwards,

Matthews & Company, Limited, Toronto; Mrs. J. A. MacMurray, St. John;
R. Flemming,
Flamming & Co., Toronto

Allan

Paul

Canada and America Face
11

for

Canada

this year,

excessively
production costs here at
Exporting plants and jobs

high
home.

problem

only

our

limited

substitute

for

exporting goods. While we con¬
tinue to put plants abroad, and
license patents and processes for
use there, we must also keep the
channels of trade ogHm for goods
produced here at home, and pro¬
duce

that will be able to
compete — both in price and in
quality—in open markets.
far

the

have

been

viewing

problems of trade principally

in terms of the national
our

countries.

two

interests

The impli¬

much wider.

The free

cations

are

world,

however we may define
it is running with the

the

race

Communist
thrust

trade among

difficulties

take

mightily to

all

world,
needs the
lively and growing
its own members.

this, I believe, the broad

Canadian

into

the

somewhat

Continued from page

Canada and the United States will

putting aside the old sensitivities
different perspective against the
be close to 1 trillion cubic feet.
and the old anxieties
ghosts of
This supply-demand ratio of two
magnitude of the problems we issues
long since dead. Let them
face in common in today's world.
to one, along with long-term op¬
remain
available
for
rhetorical
This certainly was evident in the
tions at the present price schedule,
use from time to time if need be,
regular joint meetings early this but let us not allow them to ob¬ might very well contain our cost
of gas in the fields for some years
year
of our economic officials, scure the
opportunities — I would
where frictions between Canada
to
come.
Certainly the supplyeven say the necessity — for an
and the United States received
demand relationship, and stability
increasing amount of conference
of
the
much less attention than in any
producers^ price will
and
cooperation.
We can have
of
their
previous sessions, and these with no loss of
materially affect and control our
identity or
broader concerns common to both
ability to make future sales in the
integrity to your country or to
countries

received

two

Our

more.

United

mine.

have

nations

their

separate destinies to work out

—

♦An

the

address

44th

in the economic realm

well

by Mr.

Annual

Alexander

Convention

Dealers' Association

before

the

In¬

Canada,
Murray Bay, P.Q., Canada, June 17, 1960.

States market place.

happy to state that our
short-term and long-term market
prospects are rather encouraging
and, of course, our industry will
not
even
reach the brekk-even
am

point, let alone

prosper and grow,
increased volume. I will

without
have

confine

sales

the

remarks

served

area

our

because of lack of de¬
knowledge of the British

company

tailed

Gairdner S
320

Gompany Limited

Columbia
in

serves

complete investment service

our

organization

corporation executives for the
tal

through

a new

data, but
Trans-Canada

about two-thirds of

About

We have
year

for investors

The facilities of

Alberta

the

the Canadian market.

Bullish

We provide

and

event

any

system

Bay Street, Toronto, Canada

sales

Sales

forecast

based

customers

our

from

distributor

Saskatchewan

American will increase

and

than twofold by 1962, rising from
115 billion cubic feet this year to
about 250 billion cubic feet. Look¬

ing ahead four
can

years to 1964, we
realistically optimistic that

Will

contract

for

additional

sales to the United States by then,
and on this basis expect that our
sales

will

triple this year's vol¬
increasing from 115 to 345

ume,

billion
year

last

cubic

feet.

Our

sales

this

will be about 60% ahead of
year, and in the first five

months

were

66% better than the

period January through May 1959.
It is gratifying that these
figures
are
reasonably close to the original
targets for our company.

On
cur

longer term basis

with

Board

the

National

con¬

Energy

forecast

which, for the
geographic
areas
we
serve, indicates that the average
annual growth rate of total sales
Canadian

will

increase

11%

over

the

10 years, and 7% over the next
20 years. All these figures assume
annual growth of our

economy

rate

| more

than

during recent years when
much of our
manufacturing in¬
dustry has been damaged by off¬
shore competition. The extent to
so

we
should factor in the
Soviet ability to price goods and
services based on political rather

than

economic

requirements

@
Annett &

Member:

Montreal Stock Exchange
Vancouver Stock Exchange

Company Limited
Member

The Investment Dealers' Association of
Canada

Winnipeg Stock Exchange
Member:

The Investment

Security Underwriters

Affiliate:

Dealers*

Gairdner &

Association

60 Wall

of Canada

Company Inc.

Member

Toronto Stock

•

Toronto

All Major

Canadian
Stock

Exchanges

Stock and Bond Dealers

Annett Partners Limited

Street, New York

Calgary

Kingston

Kitchener

Ottawa

Quebec

Edmonton

London

Halifax

New York

Exchange

Hamilton

Montreal

Vancouver

Winnipeg

220

Bay Street

Toronto, Canada

has

been

Shares.

Inquiries invited

Montreal. These data indicate that
our total gas
sales, both Canadian

which

fiveon

Industry

of raising capi¬

issue of Bonds, Debentures

Canadian Stock Exchange

provided

also available to

purpose

The Toronto Stock Exchange

Picture

just completed

careful study and analysis of data

are

Canada

The Transmission

artery, will

markets

un¬

vestment

Thursday, June 30, 1960

Association

—

goods

Thus

gas

south

Lee, W. E. Hutton & Co., New York City;

United
States.
An
arrangement
natural gas in the field, but I
advantageous to all parties. Cer¬
leash new forces of world trade
believe the abounding new dis¬
tainly there are many more areas
and to combat any resurgence of
of
possible
mutual
advantage, covery of approximately two tril¬
the spirit of anti-trade.
lion cubic feet per year will have
The where the
gains to be realized far
an
effect on the wellhead price.
thought will occur to some that
outweigh the obstacles that both
the place to practice this is close
countries often have made to look Against this discovery rate of 2
to home, along the 49th parallel.
trillion feet per year, we expect
so
large.
Indeed it is. But our continental
that the market demand in both
Certainly this is a time for
States is to labor

the

tinent

...

Canadian Natural Gas and

from the Canadian
Northwest, piped across the con¬

United

the

and

Today's conditions,
a new order of

correspondence between us. Later

flow

role

Chippindale, Calvin Bullock, Ltd., Montreal; James
Murray Hanson, Investment Bankers

however', call for

A New World Trade Force
Continued from page

others.

the

Financial Chronicle

Telephone

EMpire 3-7361

The Commercial and

Mr.

Mrs. J. C. Edwards,

Paul

Today's conditions,

in the others.

T71

•

Canada and America race
A New World Trade Force
A

A A

AVl

role

United

the

and

Canada

for

States is to labor

mightily to un¬

of our excessively leash new forces of world trade
high
production costs here at and to combat any resurgence of
home.
Exporting plants and jobs the
spirit of anti-trade.
The
is only a limited substitute for
thought will occur to some that
exporting goods. While we con¬ the
place to practice this is close
tinue to put plants abroad, and
to home, along the 49th parallel.
license patents and processes for
Indeed it is. But our continental
use there, we must also keep the
difficulties take on a somewhat
channels of trade open for goods
different perspective against the
produced here at home, and pro¬
magnitude of the problems we
duce goods that will be able to
face in common in today's world.
compete — both in price and in This
certainly was evident in the
quality—in open markets.
the

problem

regular joint meetings early this

Thus
the

far

have

been

viewing

terms of the

our

national interests

countries.

two

cations

The impli¬

much wider.

are

The free

however we may define
race
it is running with the

world,
the

year

problems of trade principally where

Communist
thrust
trade

among

world,

lively

its

needs

and

the

much

their

broader

Canada

between

States

United

less

officials,

economic

our

frictions

attention

received

than

sessions,

concerns common

countries

received

any

and

to both

more.

and growing
members.

Our

two

have

nations

this, I believe, the broad

tainly "there
of
possible

the

arrangement

Cer¬

are many more areas

mutua^

advantage,
where the gains to be realized far
outweigh the obstacles that both
countries often have made to look

is a time for
putting aside the old sensitivities
and the old anxieties — ghosts of
Certainly

issues

this

Let them

long since dead.
available

remain

rhetorical

for

from time to time if need be,

use

but let

not allow them

the opportunities

ob¬

I would
even say the
necessity — for an
increasing amount of conference
and
cooperation.
We can have
these with no loss of identity or

scure

integrity

your

—

well

Continued from page

natural

gas

believe

the

—

country

•An

address

44th

Mr.

Alexander before

Annual

Convention

the

Dealers'

Association

Canada,

In¬

Murray Bay, P.Q., Canada, June 17, 1960.

provided

the field, but I
abounding new dis¬

of approximately two tril¬
will have
effect on the wellhead price.

covery

lion cubic feet per year
an

Against this
feet

the

that

discovery rate of 2
year, we expect

per

market

demand

both

Canada and the United States will
close

trillion

cubic

feet.

This

supply-demand ratio of two
to one, along with long-term op¬
tions at the present price schedule,

might

well contain our cost
in the fields for some years
very

of gas
to

Certainly

come.

demand

supply-

the

relationship, and stability
producers'
price
will

the

materially affect and control our
ability to make future sales in the
United
I

the

market

States

reach

even

point, let alone
without

state

the

break-even

prosper

increased

have

confine

sales

the

area

and grow,

volume.

will

remarks
served by

on
our

because of lack of de¬
knowledge of the British

company

tailed

320

Gompani) Limited

Columbia
in

serves

complete investment service

our

organization

corporation executives for the
tal

through

a new

About

Sales

Picture

We have just completed a fiveyear

for investors

The facilities of

Alberta data, but
the Trans-Canada
about two-thirds of

the Canadian market.
Bullish

We provide

and

event

any

system

Bay Street, Toronto, Canada

sales

forecast

based

careful study and analysis of data

are

New York City;
s

Industry

our

from

customers

distributor

Saskatchewan

total gas

our

sales, both Canadian

American will increase

and

than twofold by 1962, rising from
115 billion cubic feet this year to

about 250 billion cubic feet. Look¬

ing ahead four

years to 1964, we
realistically optimistic that

can

will

contract

for

additional

sales to the United States by then,
and on this basis expect that our
sales

will

triple this year's vol¬
increasing from 115 to 345

ume,

billion

cubic

feet.

Our

sales

this

year

will be about 60% ahead of

last

year,

months

and in the first five
66% better than the

were

period January through May 1959.
It is gratifying that these figures

reasonably close to the original
targets for our company.
On

longer term basis

with

cur

Board

the

forecast

we con¬

National

Energy

which,

for

the
geographic
areas
we
serve, indicates that the average
annual growth rate of total sales
Canadian

will
10

increase

11%

over

the

and 7% *6ver the next
20 years. All these figures assume
annual growth of our economy at
a

years,

rate

been

than

during

recent

much of our manufacturing in¬
dustry has been damaged by off¬
shore competition. The extent to
so

which

should

factor

than

economic

requirements

Shares.

Inquiries invited

Annett &
Member:

Company Limited
Member

The Toronto Stock Exchange
Canadian Slock

Montreal Stock Exc hange

Exchange

Vancouver Stock Exchange

The Investment Dealers' Association of Canada

Winnipeg Stock Exchange

Security Underwriters

Member:
The Investment

Stock and Bond Dealers

Affiliate:

Dealers'

Gairdner &

Association

60 Wall

of Canada

Company Inc.

Annett Partners Limited

Street, New York

Member

Toronto Stock
Toronto

All Major

Calgary

Kingston

Kitchener

Edmonton
London

Halifax

Ottawa

Quebec

Montreal

New York

Exchange

Hamilton

Canadian
Stock Exchanges

Vancouver

Winnipeg

220

Bay Street

Toronto, Canada

the

Soviet ability to price goods and
services based on political rather

of raising capi¬

issue of Bonds, Debentures

has

when

years

also available to

purpose

Montreal. These data indicate that

are

place.

that our
short-term and long-term market
prospects are rather encouraging
and, of course, our industry will
happy

not

Gairdner 8

Thursday, June 30, 1960

The Transmission

trillion

large.

their

separate destinies to work out
in the economic realm

advantageous to all parties.

vestment

In all

States.

United

markets

into

Canadian Natural Gas and

artery, will

mine.

the

own

Canadian

south

flow

Continued from page 11

tinent

Chippindale, Calvin Bullock, Ltd., Montreal; James Lee, W. E. Hutton & Co.,
Murray Hanson, Investment Bankers Association of Canada

Allan

Matthews A Company, Limited, Toronto; Mrs. J. A. MacMurray, St. John;
R.
Flemming,
Flemming & Co., Toronto

Financial Chronicle

Telephone

EMpire 3-7361

Volume

Number 5964

191

...

The Commercial and
Financial Chronicle
13

Mr.

Mrs. L. A. Tatton, James Richardson

& Sons, Chatham; Grant Griffith, James Richardson

John E. C. Winslow, Winslow & Winslow, Limited, Woodstock, N.

London, Ont.;

Sons,

incapable of decision, but barring

processing

such

imponderables

paper, metal

casts

appear

these fore¬

to b& sound at this

time.

present time; there are
about 1,100,000
customers using
natural gas in Canada, and we
are pleased that about 750,000, or
two-thirds
of
these
are
being
the

plants

natural

with

served

hauled

gas

by our company. In the area we

residential customers
are being added at a rate in excess
of 60,000, and nearly all of these
new

serve,

domestic
natural

will

customers

use

to heat their homes.

gas

In Manitoba

and

Central Ontario,

nine out of every ten

new

homes

being built in areas where natural

and

cement,
steel,
pulp,
fabricating, chemical

almost

manufacturing.

ing

used

every

It is

generate

type
be¬

even

electrical

energy in
Eastern Ontario.
We
have many examples of increased

mains,

converted

the

another

distribu¬

natural

from

gas

ural

saw

flame being used in a
manufacturing
plant
in

gas

heavy
Ontario

cut

steel, which

was

inch

slab

then annealed in

natural gas fired oven, and then
assembled in a gas turbine which

will
at

be installed

one

japrit1.

Currently, about half of the
transmit

livered

tomers

from
our

Alberta

distributor

industrial

gas
de¬

cus¬

and
this proportion will gradually de¬
cline

creases.

and

the

The

users,

domestic

load

in¬

^variety of industrial

commercial

natural

gas

applications of
continues to expand

in every area we serve.
of
energy is

Our form

being used

compressor

being used
powdered milk and

gas

This

coffee.

even

the

use

one

ex¬

direct

gas

fired air heaters which operate at

food

and

there

95%

compared
with
75% for the former steam meth¬
ods.

efficiency

plant where the daily
production of instant coffee is the
equivalent to two million cups,
gas is used to roast the beans, heat
the water, heat the spray dryers
and

one

air

even

packaging

condition

Burns

Bros.

Denton, Ltd., Toronto;
Chaput, Montreal

Montreal's

and

ready-mix

concrete

Canada's

largest

producer is
gas in the world's

per

and

year

ten

which

million

can

cubic

economy of this form

of en¬
It would appear that more

ergy.
and

people are recognizing
natural
gas
is technically
right and economically sound.
To

nadian

realistic

natural

about

the

transmission

gas

converted

winter

the

Last

gas.

suburban

community
of Outremont used natural gas to
127

The

new

tons

snow

per

Toronto-Dominion Bank

These

are

but

few

applications

the

many

and

natural

and we feel we now
definite indication of mar¬

have

ket

new

for

early growth years. How¬
a major step forward was
taken last April 1 when the Gov¬

the versatility

approach

Tennessee
We

are

Federal

Power

that

the

Commission

has

Falls,

ernment

Canada

accepted

the

sion

the

National

Company, Alberta and South¬
Canadian Montana, and

ern,

Trans-Canada be approved. Since
then we have received Gas Li¬
No. 1

cense

204

day

per

authorizing the export

million

cubic

feet

Emerson,

gas

Manitoba,

204

million

Falls,
at

our

up to
feet at Niagara
interruptible basis,

cubic

discretion

after

all

Cana¬

dian requirements have been ful¬

filled.
very

The

Niagara Falls sale is

important to the welfare of

Trans-Canada

maintain

will

and

high

help

customer

the

Tennessee

financing and the commencement
of

construction

and

our

facilities,

Emerson,

customer

our

the Midwestern Gas Transmission

Company,
program

had

under

its

actually selling

load factor and

Continued

our

be
incorporated in Canada?
How about income
and other business taxes?

What

are

Underwriters and distributors of Canadian Securities

the per¬

sonal income tax rates?

Are there
as

The

set up

well

provincial

federal taxes?

answers

other

to these and

questions-

Burns Bros. & Denton, inc.

vital to the business¬
man

business

2 BROADWAY

planning to set

up operations in Canada
—are to be found in our

NEW YORK 4, NEW YORK

"Memorandum Re¬

operations

DIgby 4-3870

lating to Carrying On
Business In Canada".

For your copy—free and
without obligation

—write to Business

CANADA?

Development Department,
The Royal Bank of
Canada, Head Office,
360 St. James Street

West, Montreal, Canada.

Affiliated with:
Burns Bros. & Company

Burns Bros. & Denton Ltd.

Ltd.

Members: The Investment Dealers'

Members: The Toronto Stock Exchange

Association

The Canadian Stock Exchange

THE ROYAL BANK
OF CANADA

Direct Wire Service
Toronto

London
Now York
Agency—68 William Strool, N.w York 3,

ASSETS EXCEED 4 BILLION DOLLARS
■

N. Y.

of Canada

To:
Winnipeg
Ottawa

Vancouver

Montreal

construction

way.

company may

Planning

Trans¬

Company,
as
we
had
originally planned to be operating
this
export
contract
by
now.
However, we are hopeful that the
hearing will be held soon, and
that
we
will be selling
gas
at
Niagara Falls by the fall of this
year. In the meantime, our export
program
at Emerson, Manitoba,
is proceeding right on schedule.
We
have
already satisfied .the
National Energy Board as to our

the

Niagara

Gas

mission

distributor in Montreal is running

Do you know how

optimum

Soon

Gas

disappointed

room.

generally known that

Brault,

Hopes FPC Will Allow Sale to

American

gas

acceptance

very

hour^ and Gas License No. 2 for

building in Montreal will use gas
for air-conditioning, heating and
cooking in the staff kitchen.

Jacques

economic operating conditions.

ever,

recommendation

cently

Mrs.

business, it must be recognized not yet been able to conduct a
that relatively, it is still in its
hearing of the application of our

Energy Board that the export
projects of Westcoast Transmis¬

panding. Many restaurants, bak¬
eries, coin-operated laundries and
automatic car washers have re¬

enable

Ca¬

acceptance of natural gas in this
is improving, and the com¬
mercial applications are also ex¬

feet of gas per day. The industrial
area

Mr.

that

are
some
very important
and significant applications of gas
now
in operation in that area.

melt

produce

ample
Gas

our

Natural

instant

Usages of Natural

to two years behind the sales
bogeys originally conceived for
that large metropolitan
area, but

one

require

ago

A few
Alberta nat¬

Miles,

Brault

weeks

being

another fuel.

Bud

ment

Canada.

tion
>

Mrs.

cleanliness of natural gas.

home

connected

using natural
largest rotary kiln, with a capac¬
ity of four million barrels of ce¬

portion is running at about 85%.
In
many
areas,
for every new
'■

Mr.

productivity and product cost re¬
duction resulting from even tem¬
perature
control, reduced oven
or
kiln lining replacement, and

September
stations
in Saskatchewan, to help us move
more energy to market in Eastern

gas is available are installing gas
furnaces and in Toronto this pro¬

Hamilton

New York

We
gas
on

expect
to

the

page

Mr.

Mrs.

Financial Chronicle

The Commercial and

Lionel

Mantha,

McNeil,

Mantha Inc., Montreal; Mr. A Mrs.
<£
Company, Limited, Quebec

Mr.

Nesbitt,

Boudreau,

Mrs.

Pat

Midland

Cochrane,

Thursday, June 30, 1960

Securities Corpn. Ltd., Toronto; Mr.
Corporation, Limited, Toronto

there is

Canadian Natural Gas and
Ramsay Securities Co. Limited

The Transmission Industry
American

market

the

page

Emerson

from

Trans-Canada's
will

become

result

TORONTO

entire

efficient

of these

large, stable sales
to the export market. Our

of gas

unit costs decline

Telephone EMpire 3-2078

system

increase.

efficient,

profitable,

becomes

this
will

operation

Canadian

becomes

benefits

and

profitable

accrue

sales volumes

system

our

nat¬

users

ural gas. The firm sale at Emerson
for 20 years will result in the re¬

ceipt

of about $20 million per
in American funds, thus bol¬
stering Canada's balance of trade

year

position. The sale at Niagara Falls

Geoffrion, Robert & Gelinas, Inc.
Members

Investment

Dealers' Ass'n

of Canada

will
to

when

■

Robert & Gelinas, Co.

(■.

Members

i
Montreal Stock

Exchange

Toronto Stock

507
•1,

Place

Canadian Stock Exchange

Exchange

Montreal

trerhendous

assistance

in its early years

financial

source

ings

for

case

for

dollar

help

natural

gas

spending, and of conservation of
capital. For example, a major en¬
gineering decision was made in
our

November, 1961,
for Ontario and
that will pass
through the Crown Corporation
part of our system will be so great
about

Quebec

markets

rental

our

will

M.C.F.
interest

and

cents

per

cost

the

exceed

the
purchase price.
It is important
that we purchase the Crown sec¬
tion as soon as it is practicable
and

depreciation

hence

repay to the Govern¬
ment of Canada substantial funds
that

can

be used for development

of other national
Before

resources.

leave

financing

re¬

let me say that one
most encouraging aspects

quirements,
of

the

has been the confidence

and -sup¬

Their coopera¬
tion has allowed the industry, and
certainly our company,
to ap¬
proach our financing in a delib¬

port of the banks.

erate

period, in our
It is a stable
factor in the economy and is not
subject to the opinion of trade
blocks, nor is it subject to rene¬
gotiation year after year.
years.

bines

Stresses Lower Production Cost
would

state

fall,

when

natural

use

■

Quebec

•; •/.

•

.•

-v''-". -T*.

Chicoutimi

drive

load, but between these recipro¬
cating stations, gas turbines will
Consistent

installed.

with

obtain

high Canadian

man

hour

material content in these gas

and

turbines

particularly,

they
their
fuel
consumption is higher, the
total cost of owning and operat¬
ing is substantially less. .'
The feffect of this new approach
and the associated evolution of
cost

and,

lot

less.

Although

design is that our installed cost
horsepower next summer will

per

$290, compared with $430 per
in the past, and this includes

H.P.

everything

station,

the

that

remiss

the

gas

did

not

industry

tenance

houses,

vehicles,

construction

repair shops and
reduction will

equipment,

on.

prove

This 33%

.its value in

The

required
development and proc¬
essing facilities in Alberta and
British
Columbia, plus another
$200 million for gathering facili¬

vJver Fifty

years

of specialized financial service
*

field

for

ties

and

additional

Canadian brokers, banks and institutions

transmission

facilities.

Branch

Offices located at

Indicative of the extent of this

R. a. Daly & Company
LIMITED

Members
The Investment Dealers* Association
The Toronto Stock

of Canada
Exchange

future investment in transmission

facilities

company's 1960
construction
program.
It
is
a
$39.9 million program, and about
$22 million of this capital ex¬
penditure is associated with (our

303 Dominion Bank Bldg.

360 St. James St. West

TORONTO

MONTREAL

our

Connected

by private wires with

our

Main

Office

export to Midwestern Gas Trans¬

and Branches

mission

Bloomfield, N. J., Princeton, N. J., and Oil City, Pa.

This
UNDERWRITERS
CANADIAN

AND

GOVERNMENT,

CORPORATION

Orders executed

will

DEALERS

MUNICIPAL

KING

STREET

1010

BEAVER

HALL

HILL

TORONTO

MONTREAL

LNiverslty 1-9751

•

Sarnia

•

Orillia

Boston, Mass., Washington, D.

program

the

sale

$13 million of first mortgage pipe¬
line
bonds
which
we
recently

Laidlaw &

committed for in the terms of the

EMpire 4-4441

London

construction

financed

sale of subordinated income notes,

all Exchanges

WEST

1960
be

Emerson.

placed privately with institutions.
This is the only public financing
required this year, except for the

SECURITIES

Private Wires to New York,and all Branches

Company

company's original financing. Any
additional financing will be ob¬
tained by bank borrowings which
have already been arranged.
We
will

build

miles

that

fall

will

have

148,585 H.P. of natural gas engine
or

Established

•;

Co.

1842
-

25 BROAD STREET, NEW YORK 4, U. S. A.

30-inch

pipeline, and add eight new com¬
pressor stations to our system so

turbine driven compressors on

em¬

main¬

will

that $300 million will be

our

present purchasing policy we can

Huge Amount of Capital Required

expansion of this industry
require
huge
amounts
of
capital money within the next
few years. It has been estimated

tur¬

gas

compressors,
in
with reciprocating
natural gas engines which were
installed in the original system.
We will use some reciprocating
piston engines in the future to
take care of wide swings in the

ployee

manner.

earn¬

fixed

last

company

conjunction

the volume of gas

that

Bruton,

d'Armes, Montreal
p

'••

■

company

stability has such
important significance. We must
not forget
that once an export
sale is made and approved by the
Government Boards involved, it

INVESTMENT DEALERS

Geoff rion,

our

market.

Along

by next October.

BAY STREET,

line

Frank

developing a keen aware-*
the
necessity
of wise

decided

Investment Dealers* Association of Canada

197

ness

Members
Continued from

Mrs.

Bond

Bankers

Thomson

Members New York Stock
and other

Exchange

leading Exchanges

C.,

Hector

Number 5964

191

Volume

The Commercial

...

and Financial Chronicle

Vidricaire, James Richardson & Sons, Montreal; Mrs. Telfer Hanson, Toronto; Mr. & Mrs Ed
Bros. & Denton, Ltd., Montreal; Hartland W. Gee, Grant Johnson & Co., Limited, Montreal

Mr.

Mrs.

Howard

Hawke,

Turner, Burns

future. In

matically
and vary
and

maintenance

addition, we can auto¬
control these turbines
their operating speeds

capabilities

from

in these remote

Discusses

by sending-pulses
new

quire

resident

will

have

our

keen

far

Our

forecast

85%

future

have

our

con¬

proud that 84% of

mates

as we

and

causes

results

All fore¬

can.

based

assumption,

esti¬

but

the

propane

Co.,

Ltd., Toronto;
Mr.
Corpn., Ltd., Montreal

Securities

and butane would be

additional.
I

responsibility

35,200 shareholders

intelligently

awareness

Trans-Canada

we are

shares.

own

Plans

responsibility to the shareholders.

re¬

Only cerned,

operators.

Firm's

casts

simply
not

His

resident

are

Canada, and that they
to

I would like to emphasize that

to the station.

stations

These

shareholders

our

im¬

expense

Further

Saskatchewan, what to

by pressing buttons and

locations, and the

operating

provement is very substantial.

patcher in Toronto will tell each
of six gas turbines out in Mani¬
do

dis¬

point." A year from now our

toba and

will

annual

remote

personnel

needed, and the saving in housing

Gairdner

Midland

sincere

indicate that it

opinion

that

this

industry faces a future of chal¬
lenge
and
opportunity that is
relatively much greater than any¬
one

the

dream, even

industry
a

few

dared

years ago.

William

business is becoming

grated with

have tried
our

gas

Mrs.

our

Stewart,

inte¬

national welfare

and economic health, that it has a

great opportunity to
stimulate
there

shall

our

still
I

are

say

However,

imponderables,

sectors

the

Continued

The

bolster and

economy.

whole

page

forecast of operating results that
submitted

the

National

Energy Board early this year is
still

best

our

These

ture.

estimate

figures

the fu¬

include

only

the first Emerson export project,
which

for

have

now

BELfc GOUINLOCK & COMPANY

full

approval, and they do not include

LIMITID

Niagara Falls because of the in-

■STABIISHID

terruptible nature of that sale. In
these

estimates

Copy of

monthly

our

said

M KING STREET

income

net

Oct. 31,

request

LIMITED
°

THE

MEMBERS

TORONTO STOCK

THE INVESTMENT

There

are now

which

might

The

Klnjj Street West

EMplre 8-3081

two major factors

SECURITIES

ArriLUTis

increase

forecasts

and

BELL, GOUINLOCK & CO.

LIMITID

74 Trinity Place

Members Montreal Stock Exchange

New York

probable plus factors.
most

now

are

LEGGAT, BELL, GOUINLOCK

INCORPORATID

Montreal

prospects of additional export

contracts
44

AND CORPORATE

consider them to be sig¬

nificant and

OF CANADA

CANADIAN GOVERNMENT, MUNICIPAL

million with

tend

income

net

now

EXCHANGE

DEALERS' ASSOCIATION

UNDERWRITERS AND DISTRIBUTORS OP

net income of $8.3 million.

future

WEST, TORONTO

1963, our sales are esti¬

mated at about $120

WILLS, BICKLE & COMPANY

million. Two

$4%

later, for the year ending

years

is available

1961 our

sales would be $86 million with a

Investor's Digest

that for

the year ending Oct. 31,

1910

encour¬

Toronto 1

negotia¬

preliminary

and

aging

tions, hot only in connection

with

sale,

are

Emerson

second

our

second
the extraction of
The

active.

becoming

factor concerns

and
stream at
extraction plants

L.P.G.'s, specifically propane

from our

butane,
V FOUNDED

1885

one

gas

along our pipeline.

& Co.

MM*

widely known
that' we pay a premium to the
producers in Alberta for higher'

Spe»ee

It, may not be

BROKERS
in

listed, unlisted securities

BR<*DWAY

specified B.T.U. content, or

than

I®c

YORK 6.

N.V.

affdialed

the gas stream.
sell our gas along the

heating value, in
Then

M.C.F., or volume,
adjustment for
B.T.U.'s in the sales price.
We
hear and read a great deal these
system on an

and commodities in the

with

days

United States and Canada

basis

about

limii

L.P.G.
gathering,
extraction plans
of the recent hearings
Alberta Oil and Gas

">ndon,eng'

transmission and

THOMSON & MSKINNON

result

before

Broadway, New York 4

CHICAGO

INDIANAPOLIS

Conservation
TORONTO

picture
than

offices in the United States and Canada

can

that
MEMBERS NEW YORK STOCK EXCHANGE AND OTHER PRINCIPAL
SECURITY AND COMMODITY EXCHANGES

the

Board.

becomes
is

now,

Until

more
no

the

defined

specific plan

probable
B.T.U. ad¬

adopted, but it is

recovery

of the

justment could increase our net
income in 1963 by well over $1
million. Any

profit from the

sale^

-J■

,"LC«ce&Co.

Milner, SP«®

Mr.

The Commercial and

Mrs.

Robinson,

Bart left,

Dominion

Cayley

Securities

Co., Ltd., Toronto; Mr.
Corpn., Ltd., Toronto

Mrs.

Arthur

Jules

Langley,

Dubuc,

Financial Chronicle

Belanger
Cochran,

Inc., Montreal;
Murray & Co.,

Thursday, June 30, 1960

Mr. & Mrs. R.
Ltd., Toronto

Hutchison,

infancy

spite

Canadian Natural Gas and

this situation,

national

basis.

I»

ex¬

tremely confident, that with good

The Transmission

KERNAGHAN & CO. LIMITED

judgment Etnd

Industry

all
to

Continued from page

INVESTMENT SECURITIES

still

that

have

place.

RICHMOND

four residential bill classifications,

fitted

•

Examines

ST., W., TORONTO 1

the

Some

these

KERNAGHAN

CO.

nize,

LTD.

regulation

our

Members

The

Toronto

of the indus¬

company,

have

and

several

consumer

Imponderables
able

try.

and

recog¬

stated

occasions,

tight

the

need

than

keep

forget

that

dustry

the

natural

Canada

attractive

jncreases

■

securi¬

investors
consumers

and

minimum.

reason¬

again not

sense

transmission

rate

♦An

regulation. Let

gas

ties

regulation

nearly always ends up by costing

Perhaps the most important of

THOMSON

Excessive

common

concerned, it will be possible

ers'

in¬

gas

still

address

Annual

oir

its

by Mr. Kerr at the 44th
Meeting of The Investment Deal¬

Association

Richelieu,

18,

of Canada, at the ManMurray Bay, Canada, June

1960.

for

reasonable degree of regulation of
the natural gas industry. We will

Stock Exchange

need

tremendous

capital

future

amounts

order

is, of
raise

years.

raise

debt

capital,
that

necessary

equity

capital^ that

the

risk

capital. To do this it is just

course,

Cochran, Murray £

com¬

'V i

Co.

LIMITED

<0
o

mon

sens^ that our common shares
be

must

considered

investment.

is,

concern

any

regulation

that

the

few

within

Cochran,Murray £ H a9

months

will

that

i iH

'//

this

great

Y>.

restrictive

impede expansion

industry.

regulated

reasonable

rate

Toronto Stock

Exchange

basis

allowed to

are

Member of the

the

LIMITED

firmly believe that earnings

whereby
a

new

should^be

not

will

our

that

course,

Investment Dealers' Association of Canada

Primarily

emerges

Member

attractive

earn

return

Dominion Bank Bldg., Toronto,

Telephone EM. 3-9161

KJtchonar

Hamilton

London

?„•

the total rate base of the company.

Equity capital

Canadian

tracted

can

then be

at¬

terms,

be¬

favorable

then, under efficient

cause

agement,

there

prospects

man¬

reasonable

are

a
di'
be
In

Investment Securities

earnings

share. If sufficient equity

per

improved

attracted,

borrow

debt

our

will be

can

able

capital at

reason¬

able rates of interest. If

1889

•

i960

should

become

regulation
that

severe

equity is difficult to raise, if

ex-.

pansion is then possible at all, it
will,
at

of course,

high

be possible

rates

interest.

situation inevitably leads to
for

rates

gas

the

was

Incorporated

102

ing

New Yorb

Boston

This

consumer

Toronto

Montreal

Calgary

Vancouver

companies

Federal

Government, Municipal

Corporation Securities

report¬

Power

Victoria

allowable rate of return,

companies

rates

Com¬

TORONTO

LONDON

SAULT STE. MARIE

lower than

areas.

was

restrictive

bills to the
in

the

liberal

fact,

enabled

offer

London, England

and

MONTREAL
SARNIA

HAMILTON

ST. THOMAS

KITCHENER
BRANTFORD

was that liberal rate
jurisdiction,
with
higher

base
Winnipeg

in
*

the

Canadian

summary

mission in the United States. The

these

and other Canadian Cities

power

Members The Investment Dealers' Association
of Canada

higher

conclusion

Canadian Affiliates in
1

impressed by

Limited

only

level.

A. E. Ames & Co.

Midland Securities Corpn.

consumers

case

regulation

average

Power

The Midland

Company Limited

Members: Toronto Stock Exchange

monthly

Montreal Stock Exchange

lower

Canadian Stock Exchange

were

jurisdiction in each

Federal

Affiliated with

service

the

Commission's

Midland Canadian Corporation
2 Wall Street

New York 5, N. Y.

Mr.

Number 5964

191

Volume

Mrs.

Mr.

Hill,

Edgar

Mrs.

The Commercial and Financial Chronicle

Royal

Allman,

Securities

Annett

Corporation,

Ltd.,

Company, Ltd.,

Mr. & Mrs. Ian D. Cameron, Bankers Bond Corporation, Limited, Toronto

Montreal

Mr. & Mrs. J. I. Crookston, Nesbitt, Thomson & Co., Ltd., Toronto

Toronto

retrogressive we must encourage

Some Disquieting Aspects
Of the Canadian Economy

increased saving.
How may we

promote increased

Step with

Obviously since
saving is postponed consumption
personal saving?

adequately re¬
of fixed
income securities we should have
a stable price level and an interest
return adequate to obtain the re¬
quired volume of savings. To at¬
tract equity capital we must have
the quality of growth in the econ¬
omy. Granted these conditions the
answer to my question
seems to
be that both Government and the
be

must

savers

CANADA'S PROGRESS

warded. To attract buyers

has

Continued from page 3

dividual

and invest.

rate

materially

than

faster

national output.
Governments have

our

about

r o u

substantial redistribution

of income

through taxation in

or¬

preferably
sources.

income and support to all citizens.

this

This

and

increasing

has

the

effect

consumption

and

ducing savings. Increased
benefits

mean

of
re¬

social

increased taxation.

Increased taxation

means

the

in¬

save

expansion re¬

rate

high

money

quires massive application of cap¬
ital which, as I have noted, should

der to provide maximum levels of/

practice

less

means
a

than

lower

country like Canada
of consumption

rate

experiencing.

assumption that a reduc¬

tion in the rate of
sion

domestic

higher rate of saving

have been

On the

from

come

would

capital expan¬

undesirable

for encouraging saying.
Government—the President
of the Montreal Stock Exchange

As to

and recently stated "It has been a long
time since any Canadian Govern¬
ment has made thrift a funda¬
mental

faith." Tax or

article

concessions

of the

gradually increasing

tax base. On

the side of business—

cause

Tel.

WHitehall

financial groups

of the

Tel. EMpire 2-5751

corporations.

our

New York affiliate, W. C.

Pitfield & Co., Inc., we

maintain private wire con¬

From the offices

nections with

our

branches coast-to-coast in Canada.

inquiries will be dealt with promptly. Please

inquiries to:

W. C. Pitfield & Co.,
30

Cornhill

London

E. C. 3

unemployment
busi¬

There are many

Broad Street, New York

Telephone: HAnover 2-9250

W. C. Pitfield 8C

factors that

paradox, the
is the
state of export and import trade.
Mr. Coyne, Governor of Bank of
Canada,
has dealt —in several
stimulating addresses — with our
trade problems, foreign exchange
to

Inc.

is the existence

period of buoyant

contribute
most

industrial and natural resource

companies and

high level of

during

Yonge Street, Toronto 1

ness.

Montreal

always available through

organization which has a long-standing record of
success in the financing of Canadian ■* public utility,

more?
disturbing facets of

the current scene
of

d'Armes

about Canadian securities.

this

Canadian people to save
One

Place

current fact

Orders

stantly

Harris & Partners Limited

507

every

life insurance

4-0731

Affiliated with

the

investors.

Such data and information is

address

companies are con-(
preaching the values of
thrift. Is it not our duty to inten¬
sify our efforts to persuade the

are com¬

Institutions find it

other

banks, trust

tered

Canada

why American Banks, Brokers, Dealers and
so essential to have ready access to

That is

such as the char¬

investment dealers and

New York 5

part of American

prospects of

greater and greater interest on

encourage

savings need not in the long run
damage Government revenues be¬

15 Broad Street,

current and future

financial community have respon¬

sibilities

other

Harris & Partners Inc.

7he

manding yearly

Company

LIMITED

this

important

of which

Continued on page 18

Dealers' Association of Canada

Members ofthe Investment

Halifax

Moncton

•

Montreal

•

Quebec

St. Hyacinthe

•
•

Hamilton

Calgary

•

Medicine Hat

Victoria

•

New York

London, England

Saint John

•

Ottawa

•

Cornwall

Sault Ste. Marie • Winnipeg

Toronto

•

Edmonton
•

•

Vancouver

Kingston, Jamaica

Brussels

•

Geneva

Chronicle

The Commercial and Financial

Thursday, June 30, i860

ffptfl

•"

<-\>v

¥p*-M

s*'

«■

:;:

sv..

■'•'

•.

.\\.':,

IHii
I

Mr.

Mrs.

Frank

McDonald,

Cairdner

Co.,
Ltd.,
Toronto;
Co., Ltd., Toronto

Mr.

Mrs.

Jock

Canada.

employment for Canadians rather

page

than
and

has sug¬
gested that in addition to the ex¬
pansion of our exports, a greater
development of domestic second¬
ary industry is essential if we are
to re-establish economic equilib¬
He

employment.

rium between Canada and the rest

the

world

and

provide

for

tries.

workers

other

Mrs.

Thomson

Some Disquieting Aspects
Of the Canadian Economy
Continued from

Mr.

Gairdner,

must

it.

Ad¬

problems—not

are

the least of which is

developing a
relatively small home market for
secondary industry without hamperirlg our export trade by tam¬
pering with tariffs.
imediate

The

coun¬

mittedly there

George C. Vilim, Morgan, Ostiguy A Hudon, Ltd., Montreal; D. B. Creighton, Nesbitt,
Co., Ltd., Montreal; Warren A. Dakin, Jr., Osier, Hammond A Nanion, Ltd., Vancouver

task

facing

keep our'costs competitive, to

redouble

sales efforts

our

and

affect

the

prices:

our

larger export markets and the

ex¬

provide

achievement of
greater industrial efficiency and
diversification is the greatest in¬
dividual challenge that faces
Probably

the

exporters with credit

our

facilities

comparable

available to

those

exporters in compet¬

port markets—I believe that when
the

Has not the time

realize that

older

Distributors

will

people

standard

"gear up" to

come

must export

lower spur

As for

the

trading

when

come

pattern of the

adding

nations

all
our

Dealers

wide scale to

low

excellent

ent

Government of Canada Bonds

Treasury Bills

Provincial and Municipal Debentures

Certainly

Corporate Bonds and Shares

for

pres¬

facilities?

banking

indus¬

mobilizing and giving fluidity
the

ensure

our

investment capital

development. ! conclude

that
year

un¬

work

President with the conviction

in¬

vigor and

needed

for Canada's continuing economic

command to reduc¬

the

Association's

work

facilities

both for

our

business and for the

interest rates

the

artificially

inflationary
supply

money

An address

by Mr. Alexander at the
of the Investment
of
Canada, Manoir
Richelieu, Murray Bay, Quebec, June 17,

44th

Annual

Dealers'

Meeting

Association

1960.

tech¬

and

arrangements

including

granting long term credits to

foreign buyers.

>■

Reverting for

Canadian Government, Municipal

moment to the

subject of unemployment—the as¬

EQUITABLE SECURITIES CANADA LIMITED
Member of The Investment Dealers* Association of Canada

sets

the

and Corporation Securities

Unemployment Insu¬

Fund have fallen from $924

rance

million at the fend of 1956 to $356
million at the end of March, 1960.

EQUITABLE BROKERS LIMITED
Member

Head
60

dertaking

HAMILTON

•

Direct

Subsidiary:

review of the regu¬

fund

KITCHENER

•

Equisec Canada Inc.

private wire with Goldman, Sachs A

Co., New

York

that

ensure

33 St. James Street West

studies

for

those

number

the

on,

used

methods

There

500

VI 2-3466

Members
The Investment Dealers* Association

view, for bene¬

also room, in my
ficial

Suite

and need¬

eliminated?

claims

MONTREAL

unnecessary

idleness is discouraged
less

U. S.

CASGRAIN & COMPANY

un¬

lations and administration *of this

Office

^onge Street, Toronto, Canada

MONTREAL

not be merit in

there

Would

LIMITED

of The Toronto Stock Exchange

of Canada

statistical

reporting

the

unemployed.

Today the "climate" for saving
and

investing is better than a year

dence

house

LIMITED
AND

confi¬

store¬

to encourage

bond buying but not

Government,

—are

due

common

has

the

Fabriqnes,

mechanism

sparing

tendant

upon

lessened

has

try
221 NOTRE DAME STREET, WEST

the

market,

Monthly Bulletin

direct intervention

accomplished

experience

Quebec

Ottawa

Troit-Rivieres

Sherbrooke
Paris

St. Hyacinthe

Chicoutimi

Brussels

and

professional

Sorel

Shawlnlgan
Moncton

Two

Members: The Toronto Stock Exchange

ADELAIDE

STREET

Brantford

Imponderables Facing
Canada

There

Request

and The Investment Dealers* Association

Hamilton

Geneva

Ross, Kncwles & Co. Ltd.

another

skill.

Montreal

you

any

the penalties at¬

year's work and added to its store

MONTREAL 1

all Securities

through

by Government. And, our indus¬

Religious Institutions.

require information or quotations
Canadian Industrial, Mining or Oil
security, our research and trading facilities are
at your disposal.
on

available at realistic price-

dollar

thus

When

regard for selectivity

our

Municipal, Corporation,

School Commiseiong, Parishes and

Service

too burdensome for borrowers. In¬

earnings ratios. The premium

Specialists in Securities Originating in the
Province of QUEBEC

CANADA—

rates are

levels—high enough

vestment-quality

DEALERS

of value; interest

—with

UNDERWRITERS

dollar

the

attractive

L. G. BEAUBIEN & C°

have

Investors

ago.

j are, however, two im¬
ponderables facing us which will

this

has brought beneficial results,

capital market.

such

our

try will drive ahead with its task

avoid, at all costs, short

increases

and I know that

scene

could overhaul our

w£

marketing

niques,

our

solutions

grateful for the positive

able to find work.

Let

elements in the current economic

ing thfe number seeking and

run

ations

the>

problems than

mor£

unemployment—we must

with

turn

they solve.

living

prices being competitive.

foreign mercantile banking oper¬
.

Canadian

genuity at

ing nations.

which create

un¬

employment situation. As for

Greatest Challenge Facing Canada

should

Underwriters

securities

course

ability to win and hold

London

WEST

Brampton

of Canada

TORONTO,

Sudbury

Niagara Falls, Ont.

Sarnia

CANADA

Windsor
;

Mr.

Mrs.

Number 5964

191

Volume

The Commercial and Financial Chronicle

Chippindale, Calvin Bullock, Ltd., Montreal;

Allan

Morgan,

Ostiguy

Hudon,

Ltd.,

Mr.

Montreal

Mrs. J.

P. W.

Mr.

Ostiguy

Mrs.

Hubert

Godin,

ognized that the chemical business

U. S. Chemical ExportsProblems and Trends
specialty

Continued from page 6
esting to note the
of this

and Africa are
for

Asia

primarily markets

agricultural and some indus¬
chemicals,

trial

trial expansion,
Far

broad outlines

pattern as it is today.

indus¬

although

especially in the

East, has created

demand

for more

America

has

Latin

complex products.

been, and still is,

big buyer of both agricultural and
industrial

local

However,

chemicals.

made

has

industrialization

rapid strides in recent years with
the

result that

requirements
show

are

trend

chemicals

the

and

area's

beginning

towards

sales

the

area

basic

from

away

potential lies mostly in
of what may

be termed

such

the

complex intermediates, some

we can

is highly specialized and complex

ent

world

nature.

than

terials,

certain

and

normally

time

basic chemicals due to tem¬

market

spot

for

shortages of local produc¬

therefore,

is,

pattern

can

appreciated

such

changes

are

requirements

portant

im¬

especially

export

selling today. Intelligent forecast¬
ing

and

planning

vital

are

Special

offered,

problem,
a

the

range

greater

that in the

manufacturer

case

diversified

is frequently

company,

to have several distrib¬

necessary

the

same

responsible for
of

the

market,

in the

the

are

not

and

chemical

through

major factor

Similarly,

price structure.

expected

standard

mean

in¬

creased demand for the more ad¬

help

offer

great

future

for

under

constantly

products

oppor¬

expansion

*An
fore

address

the

American

Mr. Wickersjiam be¬
of Chemical

Institute

Engineers, Mexico City, Mexico, June 22,
1960.

each

different group

Even

must

then,

make

bution

the

manufacturer

important contri¬

technical

area

service through his own facilities
in the United States and

offices

branch

through

travellers

Members of his field

problems
the

are

also

areas

en¬

local

think

generally

rec-

linguistically

nically,

and

or¬

psy¬

chologically; they should be "simpatico" and capable of getting on
with

nationals

the

The

Burgess & Co.

And

Future

conclusion, what

now,

Certain

future?

the

trends

requirements.

these

all

fill

coun¬

serving.

to develdp individuals

is not easy

who

the

recent

surely be expected to

can

continue.

DEALERS IN INVESTMENT

SINCE

SECURITIES

competition

Firstly,
rope

1909

especially from Europe, as

the Common

Members

Toronto Stock Exchange

255 Bay

St., Toronto

EMpire 4-8471

•

Market takes shape.

Common

fact, the impact of the
conception

Market

Investment Dealers' Assn. of Canada

Eu¬

and Japan will become more

severe,

from

production

may

European

well prove the
problem ever

greatest competitive
faced in export

markets.

Walwyn, Stodgell

Branch—Brantford, Ontario
the trend

Secondly,

manufacturers

MATTHEWS

COMPANY

important part of
the

witness

operations

Established 1909

such

son,

only
Members:
Toronto Stock

and
a

STOCK ORDERS EXECUTED ON ALL

among the so-

underdeveloped countries
industrialize and become self-

be expected to
newly independent
countries of Africa and to those
approaching independence.
Finally, as an offsetting factor,
sufficient

44 KING STREET

Bay Street

Toronto, Ontario

Direct Connections

with New York and

EMpire 4-5191
Montreal

WEST, TORONTO

EMpire 4-1131

can

WINDSOR

spread to the

220

EXCHANGES

few.

called
to

of Canada

Dow,

MathieUnion Carbide, to name

Thirdly, the urge

of Canada

Exchange

Winnipeg Stock Exchange

The Investment Dealers' Association

Monsanto, Olin

Exchange

Investment Dealers' Association

The

companies,

American Cyanamid,

DuPont,

Toronto Stock

U. S. exports,

many

Members:

and may

widespread overseas

Limited

This is already an

grow.

LIMITED

know-

capacity

likely to continue

seems

well

for U. S.>

export

productive

and

jhow

WINNIPEG

abroad.

world's

rise in the

living will

the

engineering research, the

products.

tries in which they are

Charles H.

production

for

tunity

wider

chemicals

With

economical

ganization must be qualified tech¬

representation and technical serv¬
I

achievement

the

for

demand

complex products of

countered

ice.

and

tation costs

The

products

abroad.

success.

increasing

result

vanced

development

that

versatility and quick reaction to

will

population

steadily

Cazavan,

Marcel

Mrs.

the U. S. chemical industry.

new

varied and changing in character,
and

find

expanding

States where labor and transpor¬

utors

The

the

products indigenous to the United

pharmaceu¬

some

tion.

difficult

addition, there is from

that

chemicals.

raw ma¬

time

porary

makes

qualifications required for sale of

This

expect from past and pres¬

trends

Mr.

agricultural

the

ticals.

de Placements, Inc., Montreal;
Placements, Inc., Montreal

local distributors with the special

types of resins and their

so¬

In Europe,

phisticated products.
the

import

products,

Societe
Societe

HAMILTON

CORNWALL

PORT HOPE

The Commercial and

•

Financial Chronicle :.. Thursday, June 30, 1960

F'MfPiw

Pi
Ifm
Mr.

John

Mrs. Grtohame

Hayman,

Goulding,
Mr.

Ross

Wilson,

Johnson,

A. E.

Rose

Mrs.

Ames

Credit I nterprovincial, Ltee., Montreal;
Ross, Knowles & Co., Ltd., Toronto

Mr. A

Mrs. Bruce

Thompson,

Company, Limited, Toronto; Mrs. T. M. Hockin, London,
Robertson, Mills, Spence <6 Co., Ltd., Toronto

Ont.;

Mrs. D. B. Shaw, Toronto;
M. Fisher, Montreal

Mr.

Mrs.

Pemberton

Harold

& Co* Ltd., Vancouver;
London, Ont.; Mrs. P.

Mr.

Mrs. J. O. Hughes,

Mr.

Frank

Weller,

Mr.

Mrs.

J. Reg. Findley,

Alexander

Securities

Mrs.

Wisener, Mackellar & Co., Ltd., Toronto;
Deacon Findley Coyne Limited

Johnston,
Dominick
Corporation
of
Canada,
Montreal;
Tony
Osburn,
Ltd., Vancouver; Don Patterson, Dominick Corporation of Canada, Montreal

Glasgow,

Royal

Securities

James

Corporation Ltd., Montreal;
& Sons, Toronto

Mr.

Mrs.

L. Bell,

Richardson

I-

A
VW:

1^:, i

';
•••■'

•;

■:::

■

'
.

■

iuV/V V

••'

' ' i:
''" -:'v.

:;:'

v&V;

'•

V^««? ':

;

•

yyyymyA
y%r'd
V?"',ff

HE »«i
•" *

JH i

Mr.
'

Mrs.

James

Belshaw,

Brawley, Gathers & Co* Toronto;
Ross, Knowles A Co* Ltd., Toronto

Mr.

Mrs.

Thomas

Baker,

Marc

Ranger,

Cos grain
Credit

& Co., Ltd., Montreal: Mr. A
Anglo Francois, Ltee, Montreal

Mrs.

Lucien

Cote,

Volume

191

Number 5964

The Commercial and Financial
Chronicle
21

Collier Norris

Quinlan

MEMBERS
MONTREAL STOCK EXCHANGE

CANADIAN

STOCK

EXCHANGE

Collier Norris

Limited
Mr.

Mrs.

Norman

Alexander,

James

Richardson

Sons,

Quinlan

Winnipeg
MEMBERS

The Investment

Dealers'

Association of Canada

Montreal

Toronto

Rene T. Leclerc, Incorporee
Investment Dealers

Member

The Investment Dealers' Association of Canada

Andrew

Beaubien,

J?eaubien

Co.,

Ltd.,

Montreal;

Mrs.

Grahame

Johnson,

Montreal

Rene T. Leclerc Co.
Members

r"~' ~~

—rr''

Montreal Stock Exchange
and

Canadian Stock Exchange

132 St. James Street, West, Montreal

Underwriters

and

Distributors

k:>
Mr.

Mrs.

Wilf

Dinnick, A. E. Osier & Co., Ltd., Toronto;
Securities

Canada

Ltd.,

Mr. &
Toronto

Mrs. Jack

Lawrence,

Equitable

(J
Government,

Municipal,

Public

Utility,

Religious

Industrial

Institution

and

Securities

i
MONTREAL

QUEBEC

tMiR8 EUen
s«e

Rose,

New

Davidson,

York

Financial

City;
Mr. &
Mrs.
Counsel, Toronto;

Frank Rose,
Dow, Jones
Jack Hartney,
Financial

TROIS-RIVIERES

MONCTON

«fi Co., New York;
Counsel, Toronto

•••

The Commercial and

Mr.

Mrs.

Chester

Canada

Mr.

Pipe

Mrs.

Dube

Andre

C. Burley,
Lines Ltd.,

Jr., Bache A Co., New York; Mr.
Toronto; Mr. & Mrs. AI Findley,

and Mrs. J. W. Kerr, Trans
Bache A Co., Toronto

George

Securities

Sherwood,

Thomas

Corporation,

Mr.

Philippe Letarte, La Corporation de prets de Quebec, Quebec; Albert Boulet, Oscar
Inc., Quebec; Mr. & Mrs. J. Albert Gagnon, Carneau, Boulanger, Ltee, Quebec

Mr.

Lailam me Ltee., Quebec; J. N. E.
Mrs.
Maurice
Brault, Garneau,

Grenier, Grenier, Ruel A Cie., Inc., Quebec;
Boulan.jer Limitee, Quebec

&
Hal

Mr.

Mrs.

Thursday. June 30, 1960

B. Read Co., Ltd., Vancouver; Mr. & Mrs. D. H. Gatehouse, Royal
Mr. & Mrs. James Annett, Annett & Company, Ltd., Toronto

Montreal;

Cie.,

Laflamme, J. E.

Financial Chronicle

Reg Howard, F. J. Brennan
Murphy, Commercial A Financial

Mrs.

A CoLtd., Moncton;
Chronicle, New York

Mr. & Mrs. Edgar M.

Wootten, Royal Securities Corporation, Ltd., Vancouver;
Holland, Graham, Armstrong A Co., Montreal

lis
m'-WM
f

W&%?>

Henry

Alexander,

Morgan

Guaranty of the ^ompany
Trust Bank of
Governor

New York; Graham Towers,

Canada

Retired

L. Howes, Harris A

Bryce Farrill, Dawson,

Partners, Ltd., Toronto;

Gordon

MacLean, Harris A

Partners, Ltd., Toronto;

Hannaford, Ltd., Toronto; D. C. Hannaford, Dawson, Hannaford, Ltd., Montre*

Volume

191

Number 5964

The Commercial and Financial Chronicle

FOR YOUR INVESTMENTS
IN THE WEST

carlile & McCarthy
LIMITED
Over 30 Years in Western Canada
MEMBERS
THE

INVESTMENT DEALERS ASSOC.

OF CANADA
Direct

Private

Wires

All

Leading

Exchanges

Offices:

Calgary

Mrs. T. G.

Mulligan, Nesbitt, Thomson & Co., Ltd., Montreal; Mr. & Mrs.
Calvin

Bullock,

Ltd.,

Patrick

—

Edmonton

—

Vancouver

Victoria

—

Henderson

Montreal

Dealers in

Government Bonds
■

-y

•

«>

SAUNDERS, CAMERON LIMITED
FIFTY-FIVE YONGE
TORONTO

STREET

1, CANADA

EMPIRE

fi-8601

4*
4*

<>
4>

4*
<►

j:
Mr.

Mrs.

Peter

Crysdale, Mason & Crysdale, Ltd.,
Lynch, Pierce, Fenner & Smith,

Toronto; Mr. & Mrs.
Incorporated, Toronto

Ted

Percival,

Merrill

DAWSON, HANNAFORD LIMITED
Underwriters

and

Distributors

Canadian

!!►

Securities

::
4*

4>
4*
4*
<►
4>

4*
4*

4>*

<►

DAWSON HANNAFORD & CO. LTD.

4*
4*
<»

Members Montreal,

Toronto and Canadian Stock Exchanges

<►

<►
4*

Montreal

4*
4*
4*

New York

Toronto

4*
4>

•

Credit

Anglo-F

r-,:

Credit Anglo-Francais

Inc.

Ltee

STOCK

INVESTMENT DEALERS

BROKERS

Members

•,

■■

Members

;

Investment Dealers' Ass'n

Mr.

Mrs.

Gatehouse, Royal Securities
Calvin

Corporation, Montreal;
Ltd., Montreal

Mr. &

Montreal

Stock

Exchange

of Canada

Canadian

Stock

Exchange

Mrs. Dory Rodomar,

Bullock,

60 St. James St. West

—

MONTREAL

—

Tel.: AV. 8-2172

Branches

Quebec—Trois-Rivieres—Sherbrooke—Chicoutimi

investment in canada
Canada lias much

offer in the field of investment securities.

We shall be

glad to send you a diversified list of Canadian
Government and Corporation Bonds, as well as Preferred and
Common stock issues; also selected natural resource stocks.
—

Inquiries Invited

—

KIPPEN & COMPANY, Inc
Established

1922

Members

Montreal Stock Exchange
Canadian Stock Exchange
The Investment Dealers' Association of Canada

607

St.

James

Street West,

Montreal

UNiversity 6-2463
Direct

iraW?8#®' W'?°
Gammell.
■

Bank

& Co., Ltd., Toronto; W.M. Reay, Nesbitt, Thomson
Canada,

Toronto;

Lane,

Nesbttt,

Thomson

& Co., Ltd

M°ntrea1^

«fi Co., Ltd., lor

private wire between Montreal & Toronto

Chronicle

The Commercial and Financial

Thursday, June 30, 1960

In Attendance at Convention
Continued from

RUEL, J. PAUL E.

page

SAURIOL,

Montreal

McPHUN, F. to*

Dominion

MEMORY, J. D.*

Calgary
MILES, E. S.»

SHAW,

Montreal

& Co. Ltd.

Montreal

JOHN

Co.

Read

Canadian

Ltd.

Affiliate

James Richardson & Sons

Established 1857

Vancouver

Wills, Bickle & Co. Ltd.

All

Leading Canadian Stock and Commodity Exchanges

Toronto

Financial

and

MEMBERS

SLIPP, C. R.

Montreal

The Investment Dealers' Association

DEVON*

SMITH,

Chronicle

of Canada

Toronto Telegram

York

Toronto

J. R.*

& Co. Ltd.

Nesbitt, Thomson

Serving Investors Across Canada

SPAFFAORD, E.*

MONTREAL

Cornell, Macgillivray Ltd.

Montreal

Winnipeg

KITCHENER

PRINCE GEORGE
PRINCE ALBERT

SIMCOE

ST. THOMAS

GALT

LEAMINGTON

SASKATOON

CHATHAM

WINDSOR

Co. Ltd.

Ames

KINGSTON

KENORA

PORTAGE LA PRAIRIE

SWIFT CURRENT

/Montreal

ORMONDE, G. E. B.*

STEWART, W. A.*

McKinnon

MOOSE JAW

REGINA

EDMONTON VANCOUVER VICTORIA

CALGARY

WINNIPEG

MEDICINE HAT

LETHBRIDGE
BRANDON

STEVENSON, R. H.

& Co. Ltd.

Gundy

TORONTO

Halifax

J.*

Thomson

5, N.Y.

NEW YORK

Co. Ltd.

Ames

Thomas

Belanger Inc.

O'HARA,

STREET,

WALL

14
B.*

Kitchener

MURPHY, HAL
Commercial

Ltd.

SHERWOOD, GEORGE D.

MURDOCH, G.

Co.

Bell, Gouinlock & Co. Ltd.

G.*

Nesbitt, Thomson

OBORNE,

SECURITIES

G.*

Toronto

Ltd.

& Co.

James Richardson &Sons, Inc.
INVESTMENT

Osier

MORSE, E. S.*

MULLIGAN,

Corp. Ltd.

Toronto

Ltd.

Denton

SHAW,

Pitfield

Securities

Montreal

SHARPE,

*
&

Bros.

Toronto

Midland Securities Corp. Ltd.

Toronto

Montreal

OSBURN, A. G.

Walwyn, Stodgell & Co. Ltd.

Vancouver

Windsor

W.*

OSTIGUY,

J. C.*

STODGELL,

Ltd.

Pemberton Securities

Ltd.

Morgan, Ostigiiy & Hudon

STOTT, J. T.*
Greenshields

Montreal

Co.

Inc.

IRON ORE

Toronto

PATTERSON,
Dominick

S.*

TASCHEREAU, W/C GABRIEL

Corp. of Canada

A. D. C. to the Lieut.-Governor

Montreal

Quebec

PENNY, J.

S.*

TATTON, L. A.*

Royal Securities Corp. Ltd.

James

Toronto

Chatham

PEPALL, W. G*

Richardson &

OUTLOOK

Collier, Norris & Quinlan LtcJ.

Limited

Montreal

Sons

F.*

TELFER, R.

tseli, Gouinlock & Company,
'

Inc.

Co.

Wood, Gundy & Co. Ltd.

Osier, Hammond & Nanton Ltd.

Wood,

SCOTT, J. M. G.*

Montreal

MEREDITH, T. W.*

New

JRS

M.*

Winnipeg

Mills, Spence & Co. Ltd.

Timmins

SCHELL, E. P.*

Toronto

Montreal

& Co. Ltd.

Nesbitt, Thomson

Cie Inc.

Quebec

Geoffrion, Robert & Gelinas Inc.

Burns

Ruel

Grenier,

McNEIL, ELZEAR*

Montreal

THOMPSON, B. E.*
Ross, Knowles & Co. Ltd.

PERCIVAL, E. G.*

Fenner

Guelph

Inc.

Smith

Pierce,

Lynch,

Merrill,

New

Corp. Ltd.

Dominion Securities
Sherbrooke

TURNER,

Casgrain & ,Co. Ltd.

Ltd.

Toronto

Sons

Richardson

W.*

America's iron

ore

needs will

over

the next 25 yeairs, that Canada will become

W. S.

Lynch, Pierce,

Merrill,
&

Post

Toronto

Fenner

Inc.

Smith

industry,

major Source of funds to finance

^Canadian purchases in the United States.

,
•

^On the Steep Rock range, single big-tonnage producer of directshipping, high-grade ores in the Canadian Superior district, capacil
is

being steadily expanded in line with market demand.

Wisener, Mackellar & Co. Ltd.

Mills, Spence & Co. Ltd.

the

Toronto

S.*
& Co. Ltd.

WETMORE, M.

A.*

Co. Ltd.

Cay ley &

Toronto

Ames

WHILLANS, H.

O.*

Co.

McConnell

& Co. Ltd.

Bullock Ltd.

Toronto

ELLEN A.
*

„

FRANCIS M.

New York

WINSLOW, J. E. C.
&

York

Co. Ltd.

Toronto

Ames

Co. Ltd.

WOOTTEN, P. A.*

Royal

Securities Corp. Ltd.

Vancouver
o

Goulding, Rose &

WRIGHT, JACK R.
Carlile

Mr#.

operating efficiency.

specificationsvand has Canada's most modern

Calgary

&
^

*Operated by

group

of integrated

subsidiary of the Inland Steel Company, Chicac

wholly-

STEEP ROCK IRON MINES LIMITED
Steep Rock, Ontario
Producers of

Co. Ltd.

Toronto

emphasis

Toronto

Wood, Gundy &

new

Winslow Ltd.

WOOD, J. D.*

ROSS, to*

industry's

Vancouver

Woodstock, N.

FRANCIS M.
& Co.

brought into production.

A. E. Ames & Co. Ltd.

Winslow

Dow Jones

has just

plants for ore-handling, treating and grading.

WILSON, ROSS

York

range,

Steep Rock is also delivering high-quality "tailored" ores to buy

Wood, Gundy & Co. Ltd.

MISS

shipments from the

With the steel

WILDER, W. P.*

RODOMAR, D. V.*
Montreal

been

Ltd.

Toronto

Halifax

annual

Montreal

ROBINSON, J. M.*

ore

The Caland Mine* which will evenluallv add 3 million tons to

WELLER, F. G.*

growing iron

young

Toronto

ROBERTSON, W. H.*

C. Pitfield

and

of supply with Canada's

WEBB,, D. L*

ROBERTSON, DALTON

much mor# important source

Toronto

& Sons

Winnipeg

Mr.

:':r-.

progressively increase
a

C.*

WALKER,

RICHARDSON, J. A.

•Denote#

Investment Dealers' Association

ROSE, MRS.

Changed but Unchanging

The Canadian Press

Toronto

Bartlett,

McLeod, Young, Weir & Co. Ltd.

ROBINSON,

•

Denton Ltd*

Montreal

Financial

•'

W.*

Richardson

WADDS,

FORBES

Calvin

Morgan, Ostiguy & Hudon Ltd.

Fry & Co. Ltd.

ROY,

Digest

The outlook continues to be that

VILIM,

REID, W. G.*

New

Montreal

ROSE,

Bros.

James

Nesbitt, Thomson & Co.

New

VIDRICAIRE.

REAY, W. M.

ROSE,

Montreal

York

Burns

RANGER, MARC

James

...

Dealers'

Investment

PLOW, H. A.

RHUDE,

TRIGGER, R.*

Toronto

McCarthy Ltd.

—

in the Lake Superior Region

High-Quality Iron Ores

Meet Exacting Requiremei