September 15 1923


September 15 1923


AN INTERESTING development of our great farming industry is forecast by Professor C. L. Gray formerly professor of Economics in Saskatchewan University, in an address before the Institute of Politics at Williams College, Massachusetts. Scarcity of land in the United States, he said, would, by the middle of the century necessitate large imports of foodstuffs from abroad.

"Considering,” said Professor Gray.

“the quality and location of our undej veloped acreage, and making due allowance for the probable changes in consumption and in the methods of production, I am forced to the conclusion that we shall not be able to expand our grain production sufficiently to maintain our population a few decades hence in face of the competition of the vast Canadian surplus of cereals, unless protection shall be afforded to our producers. Such protection now ovists nominally hut it appears to lie of lu 1 Itmore than local significance. In a comparatively short period of time, 1 believe. we shall lie forced to make the same fateful choice which confronted Britain last century and which resulted in the repeal of the Corn Laws. Shall we have free trade in farm products with the resulting advantage of cheap food as a basis for further industrialization of our national life but at the expense of subordinating our agriculture still further io our industry, or shall we give sufficient protection to agriculture to insure at least iln maintenance of its present relative position in our economic policy? The answer to these questions will be fateful lo the stability and future of the Re-

Professor Cray did not attempt to answer, but the confession by a high official of the C. S. Department of Agriculture that before 20 years elapse his country will be faced with a land of scarcity and will be compelled either to cease industrial expansion or pursue, like Britain, a policy of complete free trade in foodstuffs, is of great significance for Canada. Time is undoubtedly on her side in the matter of economic policy but some of the years intervening till Professor Cray’s prophecy is realized will be difficult. Nothing, however, is more certain than that the great financial and industrial interests of the U. S. will insist upon free trade in farm products rather than face industrial stagnation. Then Canada will face real prosperity.


Question ('an you give me any information on the following subject, also how you consider the following class of insurance! I joined a 1,500 club, costing $0 lo join and $¡¿ a year dues. When a member of the club (lies each member pays in $1 , and a new member is added from the waiting list to fill up to 1,500. Do you think this is a good insurance? R.M.S.,

Gleichen, Alla.

Answer This type of insurance is simply a loose form of the old fraternal system of insurance. This system has proven a failure in its old form, and fraternal societies are being forced by circumstances to place this business on an actuarial basis, similar to that of the regular life companies. You have no guarantee of how much you may be asked to pay in any one year. If on the other hand, you secure ordinary insurance you know exactly where you stand at all times.

Question Gun you yire me any information reyanliny the Zenith Companies, / ne. Is the slock worth anything? A . N. ,S\, Bridgewater, .X. S.

Answer The Zenith Company has gone into liquidation and until the receivers make their report it will he impossible to say bow the shareholders stand. There is nothing you can do but wait for this report.

Question Would you be kind enough to inform me if anything eon be collected on

0 $1,5(10 15-year lite insurance policy, issued in l'.tOtf, and which mis allowed to lapse of1er fou r pu y incuts?

Answer We are sorry to say you cannot now collect anything. Had you applied at the time you would have been able to get a cash surrender. This cash surrender value would be used to carry the insurance on a term basis until it was all absorbed in t his way.

Question / urn writing you for adriei on on insurance policy I hold in the Order of Miircohrrs. This order is eolliny in (ill tin old policies and issuing new ones, mon adrontageons, but ut marly double the rah

1 was paying before. The rate is stilt a little

lower thou I eon get n'illi a regalar cowpuny 'or tin sonic kind of policy. I irouhl like to know if you think there is liubli to be uuotlii r ¡arriase in roles and if you would iiilrise an hi change to u regular insurance eo m pi i n y. G. I'i I !.. ( ini nby, Qm

\nswer The increase in rates in the Order of Maccabees, is part of a plan to place this society on an actuarial basis. If you have paid for a number of years and will receive a new policy in the Maccabees w it h a substantial cash value to start with we think voll would be well advised to change your policy as suggested.


Question / would be glud to liar your opinion of the American Mining and Milling company, with headquarters in Vancouver, B.C. — R. .7. H.,Ottawa, Ont.

Anawer The American Mining and Milling company is a reorganization of the Mahood Mines, Limited, which was incorporated in March, 1920, with a capitalization of $1,000,000. The present company is capitalized at $1,500,000, divided into $1,500,000 shares. The B.C. holdings of the company consist of the Betty group, the Sunrise group, the DalySullivan group, and the Lois-Edith group. The company also a year ago acquired the Fish Creek Mining company. The Fish Creek property is said to be veryrich. It comprises twenty-two claims developed by W. R. Tonkin, who has joined the American Mining and Milling company. Considerable work has been done on the properties and samples taken from the Betty group have assayed up to 400 oz. in silver to the ton. We have no information as to the financial standing of the company. The properties appear to be good and an earnest attempt is being made to develop them.

Question—Please inform me as to where I should write in order to purchase stock in the following mines! Crown Reserve, Goldaie, Clifton Porcupine.— .4. S.F., Winnipeg.

Answer—You can purchase stock in Crown Reserve, Goldaie and Clifton Porcupine mines in Winnipeg from some of your local brokers. Any reliable broker will either procure the stock for you. or tell you where it can be secured.

Question—I am holding some stock in the Maple Leaf Asbestos Corporation, and wonder if you can give me any information regarding the present standing of the company.— L. McK., Montreal.

Answer—The Maple Leaf Asbestos Corporation was started two years ago to develop an asbestos property in Quebec that was leased from the owner. We understand that they have not been very successful to date, due to a shortage of working capital. We have been unable to get any market quotations for their securities.

Question Will you kindly ansien through your Financial Page what in your opinion are the chances for an increase in vulne from present market price of Atlantic sugar common and preferred, and when Whalen Pulp and Paper common and preferred? M. 7/. 7’., Montreal.

Answer It is going to be a long wail for the common shareholders of Atlantic Sugar. We hesitate to make any predictions as to the future. The company is making some progress. We understand t hat the export business is returning a good profit, but that the competition between the Canadian mills makes it impossible to do much more than break even on the domestic business. This competition if ü keeps up. will be a bad thing for the whole sugar industry-, and some of the refineries will undoubtedly suffer. The Whalen Pulp and Paper Co. is doing well at ihr present time. It is finding a good market for its products and operations are hr lieved to be upon a profitable basis. As the annual report has not been issued yet. and there has been no report for two y ears, we are not in a position to comment on the company’s financial standing, nor can we make any prediction as to the future of t he stock.

Question I am holding stock m tin Hamilton Brewery Association. Can yon ad rise me as lo tin present standing of the concern? T S., Belleville., (hit.

Answer The Hamilton Brewery Association was incorporated in 1903 with an authorized capital of $300.000 in $100 shares. The Association took over the Henry kuntz Brewery , the lohn Gomp! Brewery and the Grant Spring Brewery The Grant Spring Brewery has since been continued individually, the Hamilton Browing Assoeiation holding all the capital stock. The .lohn Gompf Brewery was chased up seme years ago and property sold. When starting, the Association raised $300,000 by a bond issue secured by a mortgage on the plant, this money enabling them to carry out the merger. These bonds were all paid off by 1918, and, prior to the enactment of the prohibition laws, the buildings and plant were improved and extended from time to time, considerable money being spent in this way. The only statement in detail received from them is dated December 31, 1914, when total assets were $1,249,906.36, which included the share of the Grant Spring Brewery $155,000, bonds outstanding $21,000. In 1922 it was stated that their paid-up capital was $600,000, and that apart from this they had various surplus accounts of nearly $400,000. Liquid assets consisted of stock receivable and cash amounting to about $22,000. It was also stated they had a credit balance at the bank of $30,000. The properties are said to be clear of encumbrance. The company owns a large plant and equipment, as well as a large block of property, all clear of mortgage, although probably not as valuable as prior to prohibition. However, the concern has accumulated considerable reserves and is in easy shape financially.

Question—I would very much appreciate your opinion of the bonds of P. L. Robertson, Milton, Ont. Are they safe, and is the company well managed?

—J. W. M., Moffat, Ont.

Answer—The P. L. Robertson Manufacturing Company was incorporated under Ontario Laws, at Hamilton, in 1907, with authorized capital of $250,000, which was subsequently increased to $500,000. After a short time the company moved to Milton where a new plant was established and which has been added to from time to time. The company manufactures mainly a patent socket-headed screw. They had quite a struggle at first, but the business has gradually improved and they now have several substantial buildings. According to the company’s 1921 statement, quick assets, less depreciation, are shown as $128,887, with current liabilities of $36,783, and fixed and deferred assets, less liberal allowance for depreciation, amounting to $237,021. While their preferred dividends were in arrears for a time, it is understood that all of these have now been paid up, and during the past few years they have been paying a dividend on their common stock. The business appears to be progressive and well established. In financial circles the company is well regarded. All of those connected with the management of the company are said to be men of good character and experience. The bonds are a first mortgage on the property and would seem to be a reasonably safe investment.

Question—What do you think of the Western Homes, Limited, of Winnipeg, as an investment from which to draw dividends? Is it a safe company to put money into?—J.S., Hamiota, Man., and several others.

Answer—The Seventh Annual Report of the Western Homes, Limited, which was issued last January, is satisfactory. Since this report was issued the company has made substantial progress. The subscribed capital is now about $150,000. The company has paid dividends regularly every six months since its inception, at the rate of seven per cent per annum T wo years ago the company decided to offer an issue of 10,000 shares at $115 a share. This issue has been taken up with the exception of about 300 shares. The company invests its funds almost exclusively in mortgage investments in the province of Manitoba. The company is capably managed, and we do not see why a small amount of capital placed with the company should not be considered a fair investment.

Subscribers to MACLEAN'S MAGAZINE de firing adrice in regard to Canadian industrial investments, or life insurance problems, will be answered freely (if a stamped addressed envelope is enclosed), by addressing Financial Editor of MACLEAN'S MAGAZINE.

If non arc asking in regard to insurance, please give full details of your own financial and family position, so that definite and individual suggestions can be given.