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The Royal Bank of Canada Annual Meeting Sydney G. Dobson, President, declares increased industrial out- put, co-operation between management and labour and •ubstantial tax reductions would provide bedrock of future prosperity â€" "If business, labour and government keep their heads, there is no reason why we should not com- plete delayed reconversion plans this year and prepare to step forward in future," James Muir, General Manager, reports assets at record level for sixth consecutive year â€" notes increased financial assistance rendered business and individuals â€" deposits at $1,963,103,951 reach new high point â€" foreign branches valuable aid to traders. \\ arn'ing that lavish government expenditures provide no assurance of good times, and that living itandards cannot be raised through less production and higlicr wages, was voiced by Sydney G. Dobson, President of The Royal Bank of Canada at the bank's Annual Meeting. On the other hand he declared that increased production and whole-hearted co-operation be- tween management and labour would provide a solid basis for prosperity. He also noted that the present level of taxation was a drag on business and that substan- tial tax reductions would give an Incentive to individuals and to in- dustry, encourage expansion and new ventures, encourage greater production and lower prices and, therefore. prove an aid to a higher itandarfl of living. CANADA PLAYS FULL PART Stressing the increasingly im- portant role of Canada in world affairs. Mr. Dobson said: "Canada is playing her full part in the peace organizations and served on nine international bodies. She was the second largest contributor of food and the third largest contribu- tor of money to UNRRA. She has the largest store in the world of the basic essential of atomic ener- |tyâ€" uranium. I believe that though m numbers the Canadian people carry small weight in the world, when the account of world well- being comes to be added vp it will be found that the weight of- Can- ada's influence was a big factor in whatever success is attained." "I think that experiences of the past few years have brought home to all of us the fact that business and industry exist to satisfy the needs of people. "There are many wants, such as political and economic security, fa- cilities for improvement and relaxa- tion, competent health services, and wider education, but I shall speak particularly of the business aspects. 1 believe that prosperous business conditions will be the bedrock upon which people will satisfy most of their other wants. SUCCESS NOT MADE OF DREAMS ' f rtre have been all sorts 6t plans laid out by advocates of yn- provenient in our economic affairs, but it is becoming clear that many of the old principles of sound eco- nomics will survive, and some that had been abandoned must be re- turned to. On the whole our Cana- dian people are sensible and sound. They are entertained by pictures and stories of Utopia, but they know that success is not made of dreams. The story of Canada's ad- vancement is one of people and re- sources, and the ingenuity of the people in using the resources. "Roughly 68 per cent of our population art under 40 years of age. That means that the numerical bulk of the people is not yet 'set' In its ways, but is of an age to de- mand the latest, or better than the latest, in devices, comforts and ser- vices of all kinds. It is a thought to keep every business executive on the alert, because people's wants rule the market and decide the profit or ollicrwise of production. "Given an intelligent approach by business executives who are trying in a sincere way to develop a better knowledge of what the consumers want, there is no reason why Canada cannot look forward to a period of great expansion, profitable business, and higher standards of living. "I regret very much the !rrc- iponsiblc outlook many persons have regarding work and wages. I am one who believes that the time will come again when possession of a job will be considered an as- set, when having a little money as a standby will loom larger in peo- ple's minds than leisure hours. True satisfaction can be (ound only when the worker values mainly tlic work he does, and not how much he is able to compel his employer to pay. I believe in a high standard of living for everyone, and in leis- ure, but I am sorry to say that loo many of our people to-day make high wages and plentiful leisure the greatest aims of their lives. They pay too little attention lo the fact that every producer is slso a consumer, so that wliat tliey gain as producers tluy lose as con- sumers. It is wholly false to say that less prodiirtinn and more pay per worker can assure tis of pros- perity: inst as false as to think that raw materials and labour costs rah tie incrensed without ,Tt least a rorresnotiH'MK increase in the rn-^t if Hvini' " FOREST WEALTH Reviewing Canada's fortunate eompelilivc position, Mr. Dobson pointed particularly to Canada's flin.non s<ni.Tre miles of productive forest wealth and urged that ac- tive steps be tnken to assure its rorsf-rvation. "Cimdians are gen rr.i'lv surprised." he saiil, "when f)i.-v lo-r,, fiiat tluir pulp and pa- per mills take onlv about 2n per rent nf the pnnital forest crop, v.'lt't" fuel wood tikrs .T1 per cent . Ir'"'icr .Tud niiscellnneotis product'- •"'•f M v-r cent., ami piilpwood ,--rorts n-ie over S per cent. 'Though pulp and paper creates more employment than any other manufacturer and is the largest sin- gle item in Canada's export trade, yet fire, insects and disease con- sume CO per cent, more wood an- ntially than do the pulp and paper mills. Other countries have suc- ceeded in practically eliminating wastage due to nature. In Sweden, with less than 8 per cent, of Can- ada's forest area, there arc more than twice as many forest engi- neers as in Canada. VALUE MULTIPLIED "I wish to draw one fact particu- larly to your attention. In 1945 the pulp and paper industry took pulp- wood valued at $122 million, and converted it into products which had a gross value of $400 million. In other words, th»industry multi- plied more than threefold the value to Canada of its pulp and wood cut. In course of that process, its mills gave employment to 40,000 persons and paid them $80H mil- lion in salaries and wages. In ad- dition, it supplied workers in the woods with employment and their wages amounted to $75 million. When you add the purchase of ma- terials and supplies, $184 million, you realize how important th'e in- dustry is to the whole economic life of the nation. . "That this industry could be fur- ther expanded is evident when we consider that the pulpwood ship- ped out of Canada in a raw state m a year would supply a large paper-making industry. "The lumber industry which in- cludes production of sawn lumber, shingles and boards, has been in- creasing steadily. As in the case of the pulp and paper industry the value of the forest cut has been much increased by processing, in this case almost doubled. NEW PRODUCTS FROM WOOD "In addition, new horizons are opening up for the use of our forest products, sucli as in the manufac- ture of plastics and textiles. This field so far has only just been tap- ped, and holds tremendous possi- bilities. We cannot, therefore, af- ford to waste or to see carelessly destroyed any portion of our great forest resources. "Throughout the responsible fi- nancial press during late months, we have seen articles to the effect that today more than ever increas- ed industrial output is a necessity. W? need the best cooperation PQS' sible between management ancT la- bor. The high rate of productivity which would result would be the only effective influence I know of against inflation." Dealing with the question of taxation, Mr. Dobson noted that war expenditure was down to 35 percent, of what it was in the peak year. "Yet the government is col- lecting in this taxation year an amount equal to 24 per cent of the approximate 1946 national income compared with 11.0.') per cent, in 1938. The Finance Minister set his requirements at $2,769,000,000 in his last budget, compared with $534,400,000 in 1938. DRAG ON BUSINESS "Now it doesn't matter where that revenue is accumulated by the government, or how it is taken, the withdrawal of this money consti- tutes a drag upon business. Sub- stantial reduction in taxes would give an incentive to individuals and to industry, encourage expansion and new ventures, encourage great- er production and lower prices, and therefore prove an aid toward a higher standard of living. "Some will say the government needs the money for social welfare and subsidies and so on, but 1 would point out that lavish govern- ment expenditure has been unsuc- cessful in creating prosperity. "A 'let the government do it' attituric will not get us nnywhcrc, and ne- cessity alone should be the decisive factor in judging wlictlier to retain some of the wartime controls and practices. In some cases the manu- facturers' profit has been squeezed between rising costs and tlie price ceilings. I approve the policy of removing controls gradually, but as quickly as goods and services become available, anil I am hopeful that worbl and doiiu-slic conditions will soon permit us to return to a free economy. "This country reached maturity through its war effort, politically and industrially. If business, labor and government keep their heads there is no reason why we should not complete our delayed recon- version plans this year, and prepare to step forward in future." GENERAL MANAGER'S ADDRESS In presenting the bank's 77th An- nual Report, Mr. Muir, General Manager, stated that for the sixth consecutivf year the total assets of the bank, which now stood at $3,- 131,974,310, had readied new rec- ord levels. New records had been established in many departments of the bank's business. Liquid assets totalled $1,00!),742,16« representing $1.09 per cent, of the total tiabih- ties to the public. "The volume of commercial loans in Canada is up by $25,789,- 321," said Air Muir, "but this does not give a true picture for the rea- son that at November 30, 1945, a Victory Loan campaign was in full swing; nor is the loan total a com- plete index of tlie financial assist- ance whicli is being supplied by the bank to our clients in their post-war business activities. In- cluded under jhe heading 'Other Bonds, Debentures and Stocks' are many millions of dollars represent- ing the purchase by the bank of short-to mid-term bonds and de- bentures issued by clients to enable them to carry out expansion and improvements of a capital nature. "In addition, the smaller class of customer continues to take sub- stantial advantage of our facilities. This is demonstrated, for example, by the fact that during the past year we have made a total of nearly 150,000 loans of $500 and under for personal purposes. "Our loaning business abroad has also continued to e-xpaod as is il- lustrated by a well diversified in- crease of $16,623,715 in commer- cial loans." RECORD DEPOSITS The General Manager noted that total deposits had increased by more $74,000,000 to the new all time high point of $1,963,103,951. The number of deposit accounts in operation continues to grow and as a matter of fact has increased in Canada alone by 116,000 during the year bringing the total in operation up to 1,670,()00. , "The profits for the year were $903,244 greater than for the pre- ceding twelve months' operations. "As you will have observed from the Directors' Report, it has been decided to transfer to the Reserve Fund of the bank $5,000,000 from the amount at credit of Profit & Loss Account. "There will still be left the sub- stantial sum of $1,467,414 to be carried forward. "You will also note that the Re- serve Fund has been further in- creased by the addition to it of the sum of $15,000,000, bringing the Reserve Fund of the bank up to $40,000,000. "It may be recalled that in the depression period of the middle 30'8 it was decided to transfer $15,000,- XIOO from the Reserve Fund to in- ner reserves. Time, however, has shown this to have been an gverly conservative precaution. Conse- quently the entry has simply been reversed." AID TO FOREIGN TRADERS Discussing the wide network of branches operated by the bank. Mr. Muir referred particularly to the useful role played by the bank's foreign branches in facilitating for- eign trade. "The unique position which we ocupy," he said, "as the Canadian bank with the most ex- tensive chain of foreign branches, enables us to render exporting and importing clients a banking service which cannot be paralleled." Mr. Muir spoke in highest praise of the loyalty, ability and interest of all members of the staff. "Your bank is not the handiwork of any one man," he said, "nor even of any small group of men. On the con- trary, it is a monument to the co- operative effort of many, each one serving with enterprise and enthu- siasm in his or her particular sphere of duty. "I cannot commend these men and women too highly to you, nor, as I see it, can the Management of the bank render a greater service to you than that ithcy should at all times trv to ensure that a staff such as I have described is foster- ed, encouraged and maintained." Malaria Cure The new British drug paludrine has cured more than 99 per cent of malaria cases treated in the State of Victoria, Australia, it was report- ed recently. Of 3,172 cases treated, malaria recurred in only 12 or one-third of one per cent. Similar figures were obtained in the other stales. Paludrine was discovered in Britain and tested in .\ustralia to- ward the end of the war. Fire Bird Know Your Hockey Stars By Ed Fitkin Cries of "Hey, Pete!" by Punkin. the parrot, saved the Theodore E. Peters family from fire which broke out in the night at their home in Endieott, N.Y. Peters, awakened, put out the blaze, which started from an overheated stove. A navy veteran, he got Punkin in Algiers. JUST IN FUN His Mistake "Who is that talkative woman over there?" "My wife." "Sorry, my mistake." "No, mine!" Just Be Quiet The doctor told the film actress that she was run down and needed a change. "A change," said she. "Do you know that during the last eighteen months I've had three husbands, four cars, three jewel robberies, eleven cooks, two divorces, and seven landlords? What other change can you suggest?" Advertising Genius A room-seeking young resident of St. Catharines, Ont., speedily solved his problem with the fol- lowing advertisement: "Having trouble buying soap flakes, lard or bacon? Young man, working in a large grocery establishment, re- quires room, breakfast and dinner six days a wreck, private home." No Distinction ' "Yes, son," said the man of the house, "when I was your age I was next highest in my grade." "Don't take that too seriously." sighed mother, "your father went to a little red schoolhouse and there were only two pupils in his class." Abbot And Costello First* Electrician: "Have you any four-volt, two-watt bulbs?" Second' Ditto: "For what?" First: "No, two." Second: "Two what??" First: "Yes." Which Church Nurseâ€" "What church do you be- long. to?" Patient â€" "None." Nurseâ€" "Well, what church do you go to when you do go?" Patient â€" "If you must know, the church which I stay away from most of the time when I don't go is the Baptist." Garth Boesch Defence The first -.lember of the Toronto Maple Leafs to sport a moustache since .â- Xndy Blair was in his hey- day, young Garth Boesch (pro- nounced Bush) looks as if he'll be a very solid citizen on the Toronto de- fense this sea- son. Boesch. like Harry Watson, is essaying the trouble • some task of re- verting from forward to defense, although in Boesch's case, he has had previous experience as a rearguard. Witii Pittsburgh last season, he alter- nated between right wing and de- fense and in A3 league games pick- ed up 15 goals and nine assists for 84 points. In six playoff games he acquired another four points. * * * Garth is not a spectacular oper- ator but is more of the solid, dependable type and it is this latter characteristic that convinced the Toronto management that he would be a capable man in rugged going. * • * Born at Milestone, Sask., Oct. .7, 1920, Boesch has just turned 2C. He's a six-footer, scales 185, and is cool in operation. He got his hockey start with Father Murray's Notre Dame Hounds, playing jii'n- ior hockey with that school team from 1936 to 1939. He moved up to senior ranks in 1940-41 and aided Regina Rangers to victory in the Allan Cup finals for the Dominion senior championship. He remained with the Rangers the following sea- son and although they were elimin- ated by Lethbridge Maple Leafs, Boesch gained recognition as the outstanding player in the league and was presented with the Gordon Efficiency Medal. « * * Garth joined the Royal Canadian Air Force in March, 1942, and gain- ed the rank of Flying Officer. When the war ended, he was in- vited to try out with the Leafs, made a favorable impression and was sent to Pittsburgh for season- ing. At training camp this year, Boesch was assigned to a defense role and, after a slow start, began to pick up the rudiments of rear- guard patrol with celerity. School of Herring Delays Ocean Liner Herrings â€" thousands of them â€" delayed the 24,000-ton America on her latest voyage. Chief Engineer Pat Breiuian, talking to reporters before the crack liner set out on a return trip to New York, said the vessel slowed down to 19 knots compared with the usual 23 or 24. Nobody could figure it out. On arrival, it was discovered that about four tons of the fish' had been hauled in by "scoops" in the ship's bottom used to take in sea water for cooling engines. "Both the port and starboard condensers were crammed full of the fish," said Brcnnan. "It took us five hours to shovel them out." Japs Repatriated Allied Iicadquarters HBS r«- ported the completion of Jpss tt-zi pafriation of "J^t^t/ff^H^^^*^ nationals from ail »-<Jis ^fejpft- Western Pacific and the Faf^iast under United States control. « Vnu Win iSiiJoy Sta}'lns At The St. Regis Hotel TORONTO a Rvrry Room With Bath Shower nnd Telephone « SlnKle, S2..'.0 OD â€" Double, S:i.-'iO up A Good Fond. Dining and Dnac- InK NlKhtljr Sberiioiirne at Carlton Tel. RA. 413.1 A. nUUMS OBAIJTIFULI.V FunirisHRD 11.50 up HOTEL METROPOLE NIAGARA FALLS OI'P. â€" CK.n. 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Try Itl JfyiHiUm ROLL YOUR OWN BETTER CIGARETTES WITH USE CAHADAS AIR IMS COAST TO COAST [VERY DAY EXTRA MILD REG'LAR FELLERSâ€" Pedigree and Ancestry By GENE BYRNES â- Â« -« -4 4 A