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THE OSHAWA DAILY TIMES, WEDNESDAY, FEBRUARY 13, 1929 PAGE SEVEN A a fri Bulw wark of $100,000,000 "Protects Sun Life Investments 'Unique Financial Position of Company Discussed by President ' Bin in .\nnual Add y ress. i ---- : . Montreal, Feb, 13--~The phenomehal growthsand success of the Sun Life . Assurunce Company of C annual address of the P } 'The annual meeting, of this expansion, but it almost startling in «chara , streu,th of the Company. ent, Mr. by He * anticipated cvery possible adverse conti da lends widespread interest each year to the T. B. Macaulay. h has just been held, disclosed a continuation more 2 earthy still for an announcement, Tr. stated that so carefully had the directors Macaulay regarding the financial ency in the money market that even a panic which would reduce the value of the assets by one hundred mil.ons of dollars, would still leave untouched and unimpaired the shown surplus and reserves of the Company. {© Mr. Macaulay dwelt as well in ¢ manner upon the relative merits of the varied ance companies invest their funds, and of how t a most Interesting and illuminating urities in which insur- itional views on invest- ment have altered owing to the changed conditions of modern business. He said in part; "It is a great pleasure to move the adoption of this report, for the record it sets forth is a remarkable one, "A mere statement of the increa | year is impressive. In income the increase is $4 000; in surplus $9,157,000; in new assurances $112, 5000, A company with total business equal to these increases force $408, .would be a large and powerful institution, It is rejoiced at passing the mile-stone of $1, nearing $2,000,000,000, and yet already we are assets exceed $500,000,000. ses over the fifures of the previous 1,972,000; in assets $87,650, 836,000; and in total in but three years since we 000,000,000 of assurance in force, while at this moment our "But there is another feature even more striking and important. Ad- ! vance figures indicate that the increase over the previous year in the new bined lif of the continent was business written by the cc approx.mately 8 per cent, an approximately 9 per cent, figures of the Sun Life: our new our total in force increased 27 per ce e I d the increase of the combined total in force Against these percentages let me place the assmances increased 34 per cent, while nt. ' 'I need not further emphasize the rapid expansion of our business. It is but a continuation, though in acceleratin 0 1 : That the Company is extraordinarily popular with the insuring But people will hardly show so pronounced a preference That reason unquestionably is the great strength of the dition, a public is evident, without reason, Company, and its unusual profit-earning po in the report are slightly in excess timated that had we desired to do s much larger amount. We however, degree, of our normal con- wer, The earnings announced of $40,000,000; but it is clearly in- o we could have taken credit for a follow our usual conservative policy. We akvays have before our minds the possibility of a business depression, which might 'occasion heavy shrinkage secudities. Mortgage securities may securities, but that fact is not patent; at which stocks and bonds can be t on the Stock Exchange. Securities Heavily Undervalued "I have decided to take our policy- holders into our confidence in the most complete way, so that they may realize how fully our directors have provided against any contingency of this kind, You will ngtice that we say that the values quoted are those given by the government department ov lower. There is muchsin those two words, They mean that the values given in the report are ap- proximately $62,500,000 less than the actual current values of those se- curities on the' Exchanges. Then we have the additional deduction from market valies of $20,000,000, referred to in the report ,and also the special contingency reserve of $12,500, These items total $95,000,000, and our . unlisted assets and other margins raise the amount to $100,000,000, "This means that the market values of our securities could shrink by $100,000,000 without reducing our surplus by one dollar. Such a shrink- age is of course almost inconceivable. 1 indeed doubt very much if even the catastrophe of another world war could produce so drastic a depression, Supposing it did, we would still have intact our undivided surplus of over We are hardly likely, I think, to be criticized for lack of conservatism, I do not know any other financial corporation which has its assets so protected, I imagine we are more likely to be told that we have been too conservative; if so, that is a criticism we must endure. Our safety margins may perhaps be unnecessarily large, but safety must be our paramount consideration; and if, as we confidently anticipate, the margins prove not to be required, they will in time be available for distribution among our policyholders. And what possibilities for our policy- 'holders do these margins represent! Praises Canadian Law "But let us look further into our earning power. There are many con- tributing factors: energetic, yet cau- tious and economical agency manage- ment; careful selection of risks; conservatism in always retaining a considerable proportion of our earn- ings to build up protective reserves; and, above all, specialization in the safe and profitable investment of the funds. "Our investment policy is in fact 2 distinguishing chartceeristic of the Company. Our development and prosperity would have been impos- sible but for our investment pel y, and our investment policy could not have been pursued but for the wise investment provisions of our Cana- dian Insurance Law, That law stands before the world as a monument to the wisdom of our Dominion Parlia- ment. Companies of many other] lands arc cither permitted unwise freedom, or are hampered by re- strictions, equally unwise, which pro- hibit investment in many of the most desirable securities, he Canadian Act, by contrast, permits reasonable freedom to the companies, while fully safeguarding policyholders. ._. investment P, "It may be timely to summarize briefly the provisions of our law. They permit investments in:--first mortgages (up to sixty per cent of the appraised value); government and municipal bonds; corporation bonds secured by mortgage; pre- ferred stocks of corporations which bave paid dividends for the preceding five years; and common stocks of corporations which have paid divi- dends being not less than four per cent. per annum, or $500,000 per annum in amount. These provisions avoid the extreme both of unwise freedom and of harmful restriction. To my mind they are almost ideal. "Our list of assets shows that we own securities of large amount in all classes authorized by the Act. "With the great growth of the Company, the problem of investing its constantly increasing fund be- comes more and more important. What avenues are open to us? As fort mortgages, we are most unwilling '0 establish agencies in distant cen- tres, of whose real estate values, conditions and dangers, we kuow nothing. That would be to entrust in market values of all classes of at such a time become totally un- while every fluctuation in thé prices urned into immediate cash is quoted to a lafge extent the safety of our Company, to the judgment of strang- ers. Government and municipal bonds yield but low rates of interest. As for bonds of corporations, we must face the fact apart from occasional railway and public utility issues, the strongest corporations are rapidly re- deeming their obligations, and no longer need to borrow. Desirable bonds therefore represent a constant- ly decreasing field. "For 8 very considerable part of our investments we must, consequent- ly, look to those classes of common stocks which are, authorized by our Canadian Act. Fortunately, when the same degree of care as is necessary 000, | for safety in selecting mortgages and bonds is applied to the selection of common stocks, especially within the conservative limits laid down by the Act, these sclected securities are, in the judgment and experience of the thoughtful and well-informed, among the choicest and safest of all invest- ments and by far the most profitable and desirable. No Magic in 'Bond' "Consider mortgages. What com- pany has not suffered losses, and sometimes very heavy losses, on its mortgage investments? As to bonds, some people seem to consider that there is magic security in the label 'bond', This popular belief is not supported by experience. The surplus earnings and margins of many com- panies, over and above the dividend requirements of their stocks, are much greater than the surplus earn- ed by other companies in excess of the interest requirements of their bonds, Few experienced financiers would claim that the bonds usually offered are safer than, or even as safe as, stock of such companies as the Montreal Light, Heat & Power, American Telephone and Telegraph, Commonwealth Edison, and many others I could name. The -payment of the interest on the bonds is cer- tainly no more sure than 'the pay- ment of the dividends on the stocks. In the very unlikely event of the dividend on any such choice stock beipg reduced, it would be certain to be far more than offset by increases in the dividends on others, Our own average interest rate has been stead- ily mounting year after year, due solely to increased dividends and bonuses received on our stocks be- yond the rates payable on those stocks when we purchased them. As an illustration, take the common ! | stocks purchased by us in 1923; the actual cash yield from these in 1928, represented a return of 2.38 per cent. on the purchase price greater than the dividends payable on these stocks at the time of purchase, while the ayerage value of the rights and bonuses received during the interven- further' 38 per cent. per annum, Only Tested Securities Purchased stocks of all companies that do mot have a Jong record of dividend pay- ing and verity, But we go much further that. We limit oursel- ves almost entirely to corporations that have attained outstanding finan- cial SHengih with great reserves and resources already established, that supply some product or service essential to the life of. the commun- ity, and that usually are dominant in their respective spheres. Such cor- porations have their roots deep in the life of the nation they serve, and are almost part of the nation itself. The nation cannot grow and prosper without their growing and prosper- ing. of such corpor- select an corporations can hardly fail to be of greater in- trinsic value five, ten, and twenty years hence than they are to-day. "Let me repeat what I have al- readysaid on many occasions. We do not speculate. 'ce buy to keep. We never sell the stock merely because buy a security, but not as to whether the safety of our investments, even we should sell. Jf quotations be + high, we 'can 'ignore them, and, in 1fits in which our policyholders re- fact, do ignore them, : Policyholders' Profits Again In- © creased "There is no department of a Com- pany's business which deserves closer study and investigation than the in- vestments of its funds. No other de- partment will give such a generous return for the attention devoted to it, "It is' to.its investments that our, Company owes its impregnable posi- tion, and the magnitude of the pro- joice, Many years ago I expressed the hope that I would be able to announce an increased scale of pro- fits every year for at least ten years. We now make that announcement for the ninth successive year, and I certainly cannot say that I expect the increases to stop with even the tenth announcement, Our profits are accumulating as never before, and it is inevitable that a larger and larger proportion will be disbursed to our policyholders with the passing years. A Company with a Soul "But there are other features to which my mind reverts with pleas- ure. One of the most delightful com- pliments I ever received was when I was once introduced to an i as the president of a corporation that had a soul. That: this was no mere phrase is shown by the sym- pathetic comradeship that exists be- tween all ranks of the Company's service, both at head offce and in the field. It is scen also in the enthus- iastic support accorded us by our legions of policyholders. Our rela- tionship with them is something ticipating branch. Our stockholders | long ago reduced their share to five per cent. All our contracts for thirty years past have been made on the agreement that the participating policyholder shall receive ninety-five per cent. of these profits, and that right any our our members could enforce in any court of law. Policyholders t6 Benefit by Bill "The amount of profit accuring to shareholders cannot be increased or in any way affected by higher capi- talization. It is impossible that any 'increase in capital could injure the policyholders; on the other hand, every additional amount paid in by the = sharcholders gives additional security, And no additional capital will be issued except in return for actual cash, . "The small, percentage profit allowed to the pereIntage oil share or commission for guarantee- ing and managing the Company. Under the management of the stock- holders, the Sun Life - Assurance Complny of Canada has grown to huge proportions, Its agencies en- circle the globe, and it has. done much to make Canada' known and honoured around the world. It has become one of the greatest financial corporations in existence. Its policies protect hundreds of thousands of homes, That its operations have been conducted to the great advan- tage of its policyholders is sufficient- ly evidenced by this report. I have said our policyholders may confidently anticipate even greater benefits in the future: "For another reason, however, our policyholders have the strongest in- terest in desiring the Bill to pass, | members of the crew that survived And, as | "long live the popep." Then some a --------ebL members of the crowd, inspired: by || the peace pact with ' the govern. ment of King Victor Emmanuel, began shouting "viva il papa con solatore." 8 + The great mass quickly took up the appellation until a steady bea. of *'consolatores" could pe heard. The new mame spread about the streets, afterwards and a few hours later Plus XI was more or less gererally known in Rome as "Pius the Consoler." The royal house of Italy was given a full share of the demons strations in honor of the signing of the accord between the Vatican and the Quirinal. The square be- fore the Quirinal palace was jam- med this afternoon with a mass of people who shouted their loyalty and would not be satisfied until King Victor Emmanuel had ap- peared on the balcony with Queen Helena. The monarch saluted the crowd repeatedly, Donald Campbell, We are one of the the Vestris disaster last year was found frozen to death this week: near Hornell, N. Y. THE FEATURE FILMS AT LOCAL THEATRES "REX" THE WONDER HORSE, AT THE NEW MARTIN "Rex," The Wonder Horsé, one of the sensations of the screen SIBERRYS' Pay-Day Specials days. The values offered tional. We invite you to "Come and See." more than that of mere business co- operation, The sense of mutual confidence and mutual appreciation is so strong as. to be akin to friend- ship, and it is as our friends I like to think of them. This delightful relationship is the reward of unwear- ied and successful service on their behalf and 1t is a reward which is greatly prized, The Bill Before' Parliament "I will now say a few words about the Bill we have before Parliament. There has been so much misunder- standing and misrepresentation about it that I think you would like a plain statement of the facts, for, should it succeed, our directors | have agreed to recommend to the| stockholders that their proportion of ! profit he reduced to four per cent, thus increasing the policyholders' | proportion to minety-six per cent,! Sid gor spondingly increasing their, Tens Guphyed py ane | To ro no proper objec- of whom it has often been sald, \/ " tion to the Bill. It will injure nobody, 'yi ° Almost human." His part in and will help everybody; policyhold- brings out all iy saraclt iy } ers most of all. I am very sure that pn . uncanny BH Tin rol iid our policyholders throughout the ype niniiive one that will live long land will agree with us, in the memory of all who see it I apologize for speaking at such | "mye other attractions at the New length, but it appeared to be neces-| martin include another showing of world, will be seen at the New Martin Theatre this week-end in a feature production entitled "Wild Blood." Theatregoers all over Canada and the United States have been thrilled by the amazing in- Tweeds, Overchecks and Overcoats We have again replenished our Overcoat stock from our Toronto warehouse, Blues, sizes. All styles. Regular price up to $40.00. Clearing at $1375 $167 $1975 $24° Sr -- od Pay Cash and Pay Less "Pay Day and following are very excep- ' Barrymores, reduced to less than manufacturer's cost. All sary. N : er "I now move the adoption of the oe lvstery Seb." And a Big Report. It is, I venture to think, one of the New Martin h ale ge) of the most eminently 'satisfactory | tonate in En an, Be Hen or and nofeworthy reports ever pre-| program of pictures for this Dr sented at an annual meeting. It re- tnd that will more than satisf: cords the transactions of one of the (enawa mation picture lov y greatest, strongest and most bene- ' Pi e lovers. ! ficent corporations in the world, and ie | "The original Charter, granted in 1868, authorized the Company's capi- tal at $4,000,000. An amending Act passed in 1871 contained a somewhat ambiguous clause, which has been interpreted in some quarters as limit- ing the capital to $2,000,000. Five eminent legal authorities to whom we PIN STRIPE SUITS Always the most popular and dressy Suit for young men and men, Single or Cluster Pin. Stripes in Navy Blue or Black. Pure wool ing five years has amounted to a| submitted the question assure us that the original authorization was un- affected by that amendment, but ad- vised us that it would be well to Lave the matter put beyond doubt by a brief clarifying Act of Parliament. We do not ask that the capital be' increased; we merely ask that our right to issue stock up to the amount | originally authorized be freed from | legal ambiguity by a simple declara- tory clause, "But why do we require a larger capital than the present. $2,000,000? "Chiefly for two reasons: "(1) Because the present capital is manifestly out of all proportien to the magnitude of the Company's operations, It is absurd that a Com- pany, whose assets are . already $500,000,000, should be controlled by a capital of $2,000,000. (2) Because wc wish to ensure that this great Company shall néver fall into 'undesirable hands. We cannot after the status of our exist- ing shares, but we can impose. re- strictions on the transfer of the new shares which will be an effectual safeguard. "It has been said that such an in-| crease would divert from the policy- holders profits properly belonging to them, This is the exact opposite of the truth. ' "The Insurance Act allows stock- holders to receive ten per cent. of the profits distributed from the par-| it is worthy of the Company." POPE GIVEN NAME PIUS THE CONSOLER Gives First Blessing of Seven Years from St. Peter's Balcony Rome, Feb 13.-- "Pius the enn su.er' was the mame given yester- day to Pope Pius XI by a throng of more than 100,000 who received from the pontiff the first open blessing given from the ba'comy of St. Peter's in seven years, The people had come 0 catch a glimpse of their spiritual leader, while some 60,000 more crowded the famous basilica for the celebra tion of the pontifl's seven years' service as head of the church, the conclusion of the Vatican's pact with the government of I aly and the 50th year of the pope's priest- hood. When the pope, attended by car- dinals an cham"erlaics, appeared on the balcony of St. Peter's, the throng firs. cried "viva fl papa' or "THE WHITE SISTER" AT REGENT THEATRE | "The Birth of a Nation," "Pas- | sion" and "The Four Horsemen," | are among the pictures which have | been revived successfully at the | ; Capitol Theatre in New York City, in the last fcw years. In each case ! the second showing was deemed ex- pedient as a result of letters, oral single or double breasted models, Perfectly tailored and hand finished. Size 84 to 44. Special © $24.50 | Worsted materia's and in | NAVY BLUE SUIT Perfectly tailored from pure wool Indigo Dye, Eng- lish Worsted Serge, Absoe lately guaranteed and at this price the best value ever produced. Single or double breastel models, Sizes 34 to 46, Special $24.50 TWEED AND WORSTED SUITS A final clean up of high grade Suits, mostly broken ranges and odd sizes, Navy Blues, Pin Stripes, Fancy reeds and Wors'eds, nglec and double breasted ode's. Sizes 34 to 44. Regular prices $24.50 to $30.00 Special $18.75 communications or a general inci- rect "sounding-out" of public opin- | fon. A great many lctters have been received about "The White Sister," Major Edward Bowes says, and so the picture, first seen - at that |} theatre more than four years ago, | has b en brought back. i' "A film must have some special |} Broadcloth Shirts Plain White or Fancy Stripes. Separate or a'tachs oar. tu, 28193 Fancy Socks New Cheek Patterns in Silk and woo! and Silk and Lisle, All sizes 35¢ 38 pair for $1.00 Combinations Heavy Balbrizgan, Cream Shade. Short or long leeves and legs. All 95 out~tend'n~ | 8 quality--some very { merit." Major Bowes added, "to | must have as universal and compre- hensive an appeal as possible. "This universality of appeal was | fllustrated by 'Ben-Hur' which is | one of the films destined to live justify a revival, espe-ially at a big | Broadway house. The number of (§ 9 reviva's furnishes a very small per- : hod centage of the total number of pie- P i tures shown at such a theatre. It . -2 mn as OPPOSITE POST OFFICE PHONE 1110 hy indefinitely and to be revived at |§ periodic intervals. 'Ben-Hur' is the story of the birth of Christianity; its interest is world-wide. 'The o . Birth of a Natiom was an epic of tury--the Civil War, 'The Big Par- its kind, dealing with the most im- ade,' dramatizing the World War portant event in the course of Am-|and America's part in it, is also one erican history during the last cen-'of the films for which one may with confidence predict a lasting au- | doubtless be pleased to learn that dience. But the number is obviously ithe "White Sister" will be shown limited. : |again at The Oshawa Regent this The theatre goers of Oshawa will | week-end. BUY NOW ~SAVE MONEY Hundreds of Dollars Worth of Furniture Now Being Sacrificed During Our Great February Furniture Sale USE OUR EASY PAYMEN1 PLAN : -~ EY ES . Rd we »> 3 wo 3 - o> - o ny > - - - oe oe RX > * o- -» > 4 Breakfast Room Suite Very dainty and serviceable are these pretty Breakfast Room Suites finished in best enamel. The colors are cream with brown decorations and grey with blue decorations. Comprising good size Buffet, Drop Leaf Table and four smart Chairs. Reg. $59.50 $49.95 - Silk Panels Odd Panels that have been put out at stock-taking to be cleared re- gardless of cost. Silk with Bullion Fringe, some Swiss Panels and others in Cotton, from ENCINO SY LR Net a i a) Bede Ded ht LIB 0 8 200 0 2 oe 20 0 struction. Fibre Living Room Suite 3 Piece Fibre Living Room Suite, well made and nicely finished in shaded enamel. Comprising Settee, Chair, Rocker. Cushions are covered in good quality striped Denim on new spring con- Reg. £39.95 for $34.75 at this low price, Size for; pair 63 King Wool Blankets Wool Blankets imported from Scotland are being offered this sale at reduced prices. They are the noted Clydesdale make with rose or blue borders. Only a few left to clear - 68 x 84. Reg. $10.95 Floor Oiicloths Heavy Printed Floor Oilcloths in Tile, Floral and Carpet Designs 55¢ Sq. Yd. REMNANTS to be cleared, sq. yd. 45¢ Luke Furniture "The Home of Good Furniture" St. E. 95 69¢ to rr $3.00 BJM Ma ih J J J J 0 J J J J Se an 2 a0) CETTE ETE RW any CONCISE WE HEE TE TER WERE RC TCO SI Sry RJ JABS J Ja Jt J 20 00 20 2 20 20 20 0 Jt J 20 ta 0) ™» Ey 3 E35 - : a ry a ade oo» 3 «>» -> -» x «> 3 LJ - 3 . o> -» J oe o> o~ 03 ky Bed Outfit Simmons' Walnut Finished Steel Bed with continuous posts and five fillers fitted with Simmons' Link Spring and guar- Znjend pure felt or cotton mattress. Reg. $24.65. February Sa Mattress Covers GIVEN FREE With All Marshall Mattresses During FEBRUARY SALE $1975 Company OSHAWA, ONTARIO Phone 7% -79 -