"How The Sun Life Made Thirty-Eight Millions Profit In The Year 1927 "Participating Policyholders Receive Ninety-Five Per Cent © horizon, , our eapital stock, & "duced into Parliament will be sub- * mitted for your approval. " 8 - 0) v \ - he submitted to the annual meeting H : [} » a however, that not one of you, in wt ad co © TERRY, ARNE AAS RE BRT DELP VAR To, Lh Ra . come under Wall Street domina- ' mot only of our stockholders and *" out the country." of Profits--Dividends to Policyholders Again Increased ~--Company Seeks Legislation to Maintain Canadian Control. Montreal, February 16.--The phenomenal record of the Sun Life ce Company is an inspiration to all Canadians, Its income of $103.00, 000 is already equal to the total revenue of the Government of Canada in the year 1910, and $38,000,000 is certainly an amazing sum to have earned as profit in one year. Not many corporations any- where can report such figures. The President's intimate, practical com- ments at the annual meeting explaining how these huge profits were made were illuminating. Of even greater moment, however, were his statements regarding the . danger that this great Canadian institution may pass from Canadian control. Some months ago, Mr, Macaulay referred to the activity of 'Wall Street in the buying of Sun Life stock, and cautioned policyholders and shareholders of the menace it involved to an institution whicn was founded and developed by Canadians and which has obtained its phe- nomenal growth under Canadian management. Subsequent events have ustified these misgivings, and at the meeting today the first public timation was given that the Sun Life directors are seeking legislation b/ at the presen; session of Parliament which is intended to effectively forestall this danger. Precautions to Maintain the Come pany Canadian in Character concluding his address to @ shareholders and policyholders the President made the following reference to the matter:-- "There is but one cloud on our Our very prosperity has for 1927 is indeed a remarkable one, Let me touch on the main features: -- Remarkable Growth, Strength and Profits "The mew assurances completed amounted to $328,000,000, an increase of over $62,500,000, "The amount in force at the close of the year had risen to $1,487,000,000, and at the present moment is well over $1,600,000,000. "The income exceeded $102,- 000,000, an increase over the previous year of $28,800,000. To me, this is very impressive. Not only has this item passed the one hundred million mark, but the increase alone is equal to what was our total income but eight years ago, which had been accumulated by forty- nine years of strenuous effort, A life company with a total in. come no greater than our in- crease would be an important corporation, "The assets have increased by $56,000,000, and now exceed $400,000,000. "But the most wonderful of all these wonderful figures is the amount earned as profit--§38,- 000,000, How great this fig- ure is may be judged from the fact that the earnings of the previous year, in which we so rejoiced, were $20,500,000. Tt would be hardly reasonable to assume that our earnings of future years will continue on such a tremendous scale, and we have therefore set aside a large part of this sum to pro- created a remarkable demand for We desire to ensure that this great company shall always remain strictly Cana- dian in its control and in particu- lar that its investments shall never tion. 'A bill which we have intro- Ir it be passed, it will give us the pro- tection we so much need, and I know we can rely on the whole- hearted sympathy and support, policyholders here present, but of our army of policyholders through- The meeting unanimously ap- proved of the measure in question. How important and how vital to Canadians are the interests at stake is disclosed in the report of the Company. In moving the adoption of the report, President Macaulay said: -- "You gentlemen have become #0 accustomed to our presenting every year a statement surpassing all previous records that you come prepared to hear another report of that description, I am quite sure, his most optimistic mood, expected a report so favourable as that which you now have, Our record THE OSHAWA DAILY TIMES. THURSDAY, FEBRUARY 23, 1928 vide: for future contingencies. A Great Surplus and Contingency "Our securities have been valu- ed on a very comservative basis, but from even those moderate values we have set aside amother $5.000,000 to provide for marxet fluctuations, making the total de- duction under this heading $10.- 000,000. "We have also set aside the fol- lowing amounts: -- "A further $1,500,000 for un- forseen contingencies, raising that fund to $12,500,000; $500,000 to provide for possible greater longe- vity of annuitants, raising that item to $2,000,000; and $1,300,- 000 to increase our reserves on tropical business; besides writing off another $1,000,000 on our Head Office and other buildings. "We have distributed $11,100.- 000 in profits to our policyholders, and have also set aside $6,200,- 000 to cover profits accrued om policies. "After providing for all these amounts, we have added $11,000,- 000 to our undivided surplus, rafis- ing that sum from $34,000,000 to $45,000,000. Scale of Profits Increased for Eighth Successive Year "The announcement, however, that will be received with the greatest enthusiasm is that for the eighth consecutive year we have increased the scale of profit pay- ments to our policyholders. The basis of distribution for 1928 will call for nearly $900,000 more than would be the basis of last year, Profits to Policyholders Unexcelled in the World "We can already say that In profitableness ta our policyhold- ers, we are not excelled by any life company in the world; but we are not satisfied and will not be satisfied until we can make an even stronger statement than that. Years ago, I told our field force that we hoped to be able to an- nounce an increase in our profit scgle for ten consecutive years, We have maintained that record for eight years, but the ninth and tenth years have yet to come, and their story has yet to be told. Our huge undivided surplus and our great contingency funds are the best guarantee our poliayholders can have as to their future divi- dends. Large Dividends the Result of a Wise Investment Policy "You ask how we are able to make these huge profits, The $38,000,000 earned may be divided as coming approximately $14,000,- 000 from the regular life assur- ance operations of the Company, $5,000,000 from profits actually realized by the redempticn or sale of securities and $19,000,000 from increase in market valnes. And, of all the profits made in the par- ticipating branch, the policyhold- ers get ninety-five per cent, "I would not have you suppose that we ever speculate. We do not. We, of course, do mot hesi- tate to sell bonds or other fixed- interest securities when they rise to such premiums that the yield is no longer satisfactory, but when we buy a stock we buy for per- manent investment, we buy to keep and we never sell merely because the market value may have risen to a high figure. We have, how- ever, had an epidemic of security redemptions, and as a result we have the $5,000,000 of realized profit, High Interest Rate Earmed, With No Arrears "Even the normal earnings of a life company depend very largely on the rate of interest it can ob- tain on its investments. The cur- rent rate of interest has been steadily dropping for years, and there is every indication that it will continue to drop--for how long we cannot tell, The outlook for investors in bonds and mort- gages is not encouraging. 'That fact causes us no anxiety. We have enlisted many large groups of the brainiest, most experienced, most energetic' and most success- ful men op the continent to work for us to maintain our interwst earnings. We get their co-opera- tion by becoming stockholders in the outstanding basic corporations of the country, so that we snare in all the profits that they make. The dividends which we receive on our stock holdings are already two millions more than were payable on the same stocks when we bought them. Our interest ac- count, of course, includes also our dividend receipts, and our record is illuminating. In 1921 the aver- age rate earned by us was 6.07 per cent; in 1923 it was 6.20 per cent; in 1924, 6.38 per cent; in 1925, 6.41 per cent; ip 1926, 6.69 per cent; and in 1927, if we were to usé the same basis of ecaleula- tion as in previous years, the rate would be 6.81 per cent. We, how- ever, do not wish to show such a high rate, and as we always make a charge of 5 per interest earnings for investment expenses, you will note that we are quoting only the net rate, 6.47 per' cent, after deducting that in- vestment expense. The falling | rate of interest has no terrors for us, "The quality of our securities may be judged by the fact that not one dollar of interest or divi- dend on any bond, preferred or common stock listed in our assets is in arrear for even one day. Business Doubled in Four Years "The position we have attained justifies enthusiasm, but we must always look on the present as a mere vantage ground from which to plan for the future. What is that: future to be? Year after year we have been confidently pre- dicting the glorious future vet tn come, and that promised future {is now unrollinz itself hefore eyes in all cent against our | { | By l our | b its greatness and | ficulty. strength. But what of today's fu- ture? I have just been reading my own remarks of two years ago, and already the figures of which we were them so proud look small and outgrown. We have doubled in size now every five and a half years since the Company began, but our last doubling has taken only four years, and we are today growing more rapidly than ever before in our history. [I predict that the figures of two years hence will make even the figures of to- day look small and outgrown 1n their turn. Sun Life Sets Its Own Pace "People sometimes say when speaking of our progress:--'Yes, life assurance is growing wonder- fully. So it is; but the Sun Life is not content to grow only at the rate of life assurance generally. Statistics now available indicate that in 1927 the aggregate new business of all the companies oper- ating in the United States exceeded the total for 1926 by only one per cent and in Canada by seven per cent. But the new business of the Sun Life of Canada shows an increase of twenty-three per cent. We set our own pace. Our pros- perity and popularity, and the en- thusiastic support of our six hun- dred thousand policyholders, makes our growth both rapid and certain, The future still before us will, T am convinced, be more wonderful than anything we can now imagine. And it is indeed a happy thought that all that growth in size and all that growth in pros- perity mean increased service to humanity, and service at steadily lowering cost to our policyholders." The President closed his re- marks by his reference to the need of safeguarding the future of the Company, as above quoted. Tha Board of Directors of the Sun Life is composed of the fol- lowing:---T. B. Macaulay, F.LA., .A.S., President and Managing Director; Arthur B. Wood, F.I.A,, I".A.8., Vice-President and Actu- ary; Robert Adair, W.-M. Birks, Hon. Raoul Dandurand, J. Red- path Dongall, Sir Herbert 8S. Holt, Abner Kingman, J. W. McConnell, C. E. Neill, Carl Riordon, John W,. Ross, His Honour James C. Tory, Hon. Lorne (. Webster. Three new directors were added at the meeting-- Hon. IL. A, Tascherean, Ros 3 11. McMaster and C B. Me- Vaught. ICE-WATER BOAT SETS NEW RECORD . Prescott, Ont,, Feb, 22 --Rec- ordsf or international travel were broken when Morris Knight, in- ventor of the new Knight ice water speed boat, crossed the St. Lawr- ence River from Rockport, Ont., to Alexandria Bay, N.Y, with 11 passengers in 7 minutes, During the trip over, the boat skirted sev- eral islands and encountered five open stretches of water, but clam- bered in and out without any dif- LITTLE HOPE IS HELD FOR FLIERS Lewis and Two Companions Missing from Air Base Since Feb. 17 Ottawa, Feb. 22. -- Little hope was held out by Government offie- fals today that Flying Officer Lew- is and his two companions. who have been missing from the air base at Port Burwell, in Hudson Straits, since February 17, are still alive. The party carries three days' rations with them, and these must have become exhaust- ed long ago. At the same time it seemed altogether impossible that they could have survived the exposure for any length of time. Their comrades are fulfilling all the best traditions of the Roy- al Canadian Air Force in braving the storms and the extreme cold of these latitudes in an effort 'to lo- cate the missing men. SARAH COOK STEPHENSON There are residing fh this city and vicinity many who were for- mer students at De Mille College and who will remember the late Miss Stephenson. Miss Sarah Cook Stephenson, third daughter of the late Joseph Stephenson of Cobourg, Ont, died here yesterday in her 82nd year after a long illness. She was born in Richmond Hill and began teach- ing school {in Aurora when 18 years old, continuing active in the profession until she was 70 years of age. For 23 years she wa the staff of De Mille College, Osh- awa, and St, Catharines, and also taught for three years in mnrission schools., She was a life-long Meth. odist and a member of Glebe Road United Church. She leaves two brothers, Dr. A. R. Stephenson of Ogdensburg, N.Y., and Edmund F. Stephenson of Victoria, B.C., and one sister, Mrs. David Stouffer of this city. APPLICATION TO RAISE WEIR IN ST. LAWRENCE RECEIVED Ottawa, Feh, 22.--The St. Law- rence River Power Company of Massena has made application to the Secretary of State of the Un!- ted States for authorization to raise from its present level at 200 to 206 the crest of its submerged weir in the south channel of the St. Lawrence River at the mouth of its power canal. The applica- tion has heen transmitted to the International Joint Commission, which has arranged to hold a hear- ing on the application on April 8. This information was given by the Government in nthe House of Commons today. Wall Pap fem (/ ma nlerie same universal Carefully selected PAGF SEVT'N agarin Canada assa man ces ee every age ers and Paints all Paper turns a House into a Home Don't Fall to see the famous Mazximur 30 inch Wall Papers They Lead in Panel Decoration See the new Stucco Colorings, Stipples, Mottle Tones and Blends--Plain Backgrounds in every shade to match your draperies. Paints, Varnishes, E namels, Thirty-Minute Lacquers, Everything for House Decoration Best Quality Window Shades and Room Mouldings, Let us Estimate on your work before the rush. A phone call will bring a Sample Book to your door, W. H. 85 Simcoe St. North A. PATTE wie Phones 125, 1846 = BE CC BE OIA) QIN a a Be Dodd's Kidney Pills THOMPSON'S ANNUAL SAMPLE SALE JJ 35¢c 3 for $1 Ao ie eoriorioriosiorioiorioorlorforiond Samples Galore! With each purchase of one dollar and over we are giving FREE a Shopping Bag containing ten generous samples valued at ten cents, Samples from all the leading Toilet Manufacturers--Hud nut's, Armand's, Gay Paree, Minty's, Parke Davis', Woodbury's, Harriet Hubbard Ayres, etc, go to make up the 10,000 samples we are giving away to our customers during the three days of our Sale. As an added attractipn, we have prepared 250 packages for men. These include Shaving Cream, Brilliantine, Tooth Paste, . ete, You will also save money by taking advantage of the bargains listed below for THURSDAY. FRIDAY and SATURDAY CACHES WILLIAMS' PINK PILLS 35¢c 3 for $1 A.B 8S. &C, Tablets Reg. 25¢ 19¢, 2 for 35¢ Mustard Ointment Reg. 50c 33¢, 2 for 65¢ Coleo Soap 3 for 25¢ Italian Balm 29¢c and 49c¢ Bisurated Magnesia 63c Chase's K. and L. Pills 25¢ Tooth Brushes Reg. 35¢c 23c, 2 for 45¢ Child's Brushes , 20c Reg 15¢c, 2 for 25¢ Headquarters For All TOILET GOODS YARDLEY'S | HUDNUT'S Toilet Water ........ 75¢, $1.00, $1,75 Three Flowers Armand's GayParee Vanishing Cream .......... 50¢ Cold Cream .... 50¢ Cold Cream ,... 50¢c Face Pow- der, 50c, 75¢, $1 50c Toilet Soap .... cake, 35¢; box, $1.00 Face Bowder ...........oo0nsnnnn on Face Powder ,. 75¢ Talcum .. J Lip Stick .......... 25¢ Perfume Toilet Water .......... Twinplex Sharpener for Gillette Blades $2.98 Kruschen Salt Eveready Shay. Cream, Razor and Brush. Reg. $2.50 $1.50 Shampoo .......... After Shaving Lotion Shaving Stick Lavender Compact, single Face Cream ........ Cold Cream . Vanishing Cream .. Bath Salts .... $1.00 Dusting Pow- der Perfume, Cleansing Cream .. Lip Stick . Body Powder $1,25 serene sone ornnnns TBE, $1.00 $1.00 Face Powder .... seren sesssanssans (Dram) ...... 28e Special Offer A 20c Jar of Face Cream given with each box of Gay Paree Pow- Talcums ... Single Compact ......esssssssssnsssssss $1,00 Bath Crystals ...... orsrne sismrerinne 32S Talcums ........s» Sans snseinnnre FEEOR ANY, .. 28¢ Dusting Powder Brilliantine . Shampoo, 6 in box . Bath Salt Crystals Bath Salt Tablets, 6 in box Bath Dusting Powder A week end package of Armand's Creams, powder, etc. given Brilliantine ............. Sivek . Vinolia Castile 7 cakes, 25¢ 'der, and a 20c box of Powder with each jar of Cream. with each dollar's worth 'of Armand's goods bought, Travellettes , Lip Stick .... Lavender Blossoms, 6 in box .. $1.25 Smelling Salts ........ FIAT): 50c, $1.00 % BE A a a a 4 GIN PILLS 35¢c 3 for $1 a a ae - | % I Vacuum Bottles Reg. 75¢ 55¢ Woodbury's Soap 4 cakes, 69¢ THOMPSON'S 10 Simcoe St. S. We Deliver Phone 22 Baby Pants Reg. 35¢ 27¢; 4 pair, $1 Russian Oil Best Grade 59, 2 for $1.00 British Aspirin 2 doz., 25¢ Mennen's Shay. Cream, Talcum and Skin Balm Reg. 80c Briar Pipes and Buckingham Tobac- co. Reg. 70c Cocoanut Oi Shampoo Reg. 50c il Hot Water 33c, 2 for 65¢ Bottles | year guarantee 98¢c Fruitatives 22c and 45¢ Vick's Vapo-rub 45¢ Liver Oil $1.00 Wampole's Cod Violetta Cream 25¢ Syrup Tar with Cod Liver Oil 8 ozs., 32¢ Listerine 25¢, 50c, 90c mm er Sa CM Marmola Tablets Carter's Little Liver Pills 20c Squibb's Jergen Almond Lotion 45¢ I5¢c cake Soap Free Smith Bros. Cough Drops 2 for 15¢ a