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‘ee. ineotmrneentn fisca? year of Canada Packers Limited closed March 28th, 940. Net Profit, after Bond Interest, Depreciation, and Taxes was $1,667,809.78 Equivalent, (on 200,000 Shares of Common Stock)}) to soommmmmmnmennennenannornmnnnnennennensenmmemcmscmsen==nes=«»â€".... $8â€"34 PCY SAATC. The regular Dividend, 75¢ per quarter, was paid throughâ€" out the year, and as in the case of last year, an extra Dividend was declared, (and paid July 2nd, 1940) o£_ e taicariammante m acmue s $1.00 per Share. Total Dividend ........._______._.__._.__...._... $4.00 per Share. $800,000.00 The thirteenth fiscal year of Canada Packers Limited 1€ 40 Sales for the year were ........$88,205,639.75 Weight of products sold, lbs. _ 913,251,116 L« w put is2 Orce iitcct l c MB ty Te ie on in ne? en ces lt c en oA en mtc t presses the operations of the year in comparison with the average of the previous five years :â€" Cost _ of _ products, chiefly Live stock Cost of â€" materials and packages ..__.... Salaries & Wages, including Bonus .. Expenses,â€" Selling; Advertising, â€" Reâ€" pairs, and general operating costs ... Bond Interest ........ EINCOS _ l en neieennemennnien S&ies Total cost of proâ€" duct, plus Expenses Wartime _ Inventory RESELYE .._.__nccoommvoum Depreciation on Fixâ€" ed Assets _.__.._.... Total Profit, includâ€" ing Income from Investments .___.$ 1,667,809.78 The chief (and originaly business of Canada Packers is to purchase Live Stock, and to process and sell the products,â€"Meats plus By-!groducts. But numerous subsidiary operations are also carried on, including the processing and sale of :â€" r ind it pev oo o uin N n o 0 O siiey _ ie i e n s pe o5 Profit from â€" Operâ€" RHODHSE . o eneaanneenennage Income from Investâ€" NEntS .. rooonncaomae A idbadbeitrndinnin 3 schaetias Indoiadent Abefyet Butter and Cheese, Poultry and Eggs, Fish, Canned Goods, Soap, Vegetable Oil products, Fertilizer and Stock Feeds, Wool Pullery products (Wool and Skins), ete. Live Stock products constitute the bulk of the volume, and because the producers of Live Stock have a natural interest in the subject, a separate mcecunting is kept of the Profit on purely Live Stock operations. In the year under review, this Profit was equivalent to:â€" 10%e¢ per 100 lbs. of products sold, i.e. to just over 1/10¢c per lb. Broadly speaking, it may be said that the margin of Profit in the RBeef division was less than average, and that on Hogs was greater than average. On total Live Stock products, the margin per 100 lbs. was in line with the average of the last 5 years. But the amount of the Profit was ho Hiahnint ol hudvabhchidmmatca Andoantbepmine . M droornd snn u Hides and Skinsâ€"of which there are always on han about two months‘ takeâ€"off. Wool â€" _ â€"_ â€" â€"stocks of which were heavg; because preceding the war, it had been Wool in Canada. Butter and Cheeseâ€"At the outbreak of war storage at their maximum. Vece:able Oils â€" â€"of which, because of their distant sary always to have on hand sev An immediate increase occurred in the inventory products of approximately $579,000. Lo _ CCCE (LO0 Cc Lacwsa ite aennterD itself into two periods:â€"â€" 3 months up to September 3rd, 1939,â€"when war was declared, 7 months, September 3rd, 1939, to March 28th, 1940. The first has been described as the period of the war of nerves. A constant threat of war existed. The demand for certain foods was active, due to the policy of Great Britain, France, and Germany, of storing reâ€" serve supplies. During this period the weight of product merchandised was ....10% greater, but Profit was somewhat less, than in the same period of the preceding year. The second period began with the declaration of war. It brought an immediate stepâ€"up, both in volume and in margin of Profit. This improvement came in part from increased shipments to Great Britain. The increases consisted chiefly of three commoditiesâ€"Bacon, Cheese, Eggs. These increases, however, were to some extent offset by decreased shipments of other foods, which were put under licenseâ€"and in some cases excluded,â€"by the British Ministry of Food. Such foods were Canned Goods, Dressed Poultry, etc. x * The chief improvement, however, both in respect to Volume and Profit, ecame from the increased industrial activity within Canada, which began with the war and which expanded as Canada‘s war effort developed. Eviâ€" " : war and which ©*XP2RCCC "° _"Wojume of the second period (as Until the present, the war has had many unexpected developments. Ir Great Britain there has been no searcity of food. On the other hand, there has been a definite scarcity of munitions and implements of war. .__ At the moment, the placing in Canada of enormous orders for muniâ€" tions has, to some extent, diverted attention from the role assigned to Canada in preâ€"war plans,â€"that of the chief source of food. Canada‘s Azâ€" products have been to the UMHILCU MeSCP+ Hog prices since September, 1939, have, on average, not been higher than during the corresponding period a year earlier. (This, however, does rot mean that the war has failed to help the Canadian Pig industry. Very much the opposite is the case. Had it not heen for the war, Hog prices in €anada would have been much lower.) & : PBu+ althouch there was no general advance in price levels, certain Tess 2C Cys q LL2littas AiA advance But although there was no gene products, of which this Company held rapidly because of the war. Chief amo Hides and Skinsâ€"of which there are Canned Goods, Dressed Poultry, etc. h The chief improvement, however, both in respect to Volume and Profit, came from the increased ndustrial activity within Canada, which began with the war and which expanded as Canada‘s war effort developed. Eviâ€" dence of this is seen in the increased Volume of the second period (as compared with the previous year)â€"first period, increase ....10%â€"second period, increase ....17.3%. The higher Profits of the second period derive not so much from advancing prices, (as was the case in the last war), as from the general wuickening of industrial activity. In the main, prices of the chief products handled by this Company have not been advanced by the war. Cattle prices have been firm. but this has been due to two causes quite independent The higher Profits of the second pemnod GULU® M70 "" ly n noneral advancing prices, (as was the case in the last war), as from the general wuickening of industrial activity. In the main, prices of the chief products handled by this Company have not been advanced by the war. Cattle prices h:}veh been firm, but this has been due to two causes quite independent of the war:iâ€" (a) A high price level in United States, especially for choice grades. (b) Comparatively light marketings in Canada. Since the declaration of war, Canada‘s only exports of Cattle or Beef products have been to the United States. T C NBE â€"U_~ Lasoa have on average. not been higher higher, because of record volume. paa s es en oo CUDSCEL war. They have to do srolei,y with i Live Stock Industry, and the operat C OOE AEITC UV UHC 1w q j3 323â€" 0_ Co solely with its effect upon the Canadian Live Stock Industry, and the operations of this Company. In the war, issues are at stake greater than any which manâ€" kind has heretofore been called upon to solve. But, for a discusâ€" sion of them, a commercial report is not the appropriate place. The Directors who write this Report, and the Shareholders to whom it is addressed, are keenly, aware that in relation to those issues, the fortunes of a single Industry,â€"still more of a single business,â€"are a matter of small moment. Nevertheless, the war adds to, rather than detracts from, the importance of every unit engaged in essential industry. By the utmost efficiency of operation, an Industry best serves the Nation, as well as its Shareholders. The necessity, therefore, to attain such efficiency never was so great as now. L uF bemt~ifhediirmnnacetcbts ith i S L 27 _ _Nevertheless, the war adds to, r: the importance of every unit engaged the utmost efficiency of operation, an We gi OO n 70e in Ts 3 17 Net Prome : ::# sn The following cond_enged setâ€"up of the Profit The year : To cnabe io odie P rams nenanee . Profit .......__.._.... ($1,667,809.78) was equivalent 10 ................ 1.9% of Sales and to ........___._...18¢ per 100 lbs. of product sold, that is less than 1/5 per lb. In the following Report, CANADA PACKERS LIMITED _ under review began April 1st, 1939. In retrospect it divides ..$88,205,639.75 $85,066,585.76 _ 96.4 579,000.00 e ... _ $98,081.71 1.( 69,167,159.36 2,461,790.30 7,738,780.98 $86,543,667.47 _ 98.1 $70,170,294.46 95,564.179 1,194,515.13 Year ended March, 1940 1,661,92.28 1.9 5,837.50 â€" â€" 3,808,775.20 _ 4.3 ) HO BCIRLER ORCCCIOS OE OO Tuns i pany held substantial quantities, did advance Chief amongst these were the following:â€"â€" chara are always on hand the equivalent of constant references are made " apn ie n d L dz 100.0% in 79.1 1.3 2.8 8.8 1.9% $ 1,293,726.49 1.8% 1.0 RCâ€"ULLe za% because, for several months it had been very difficult to sell REPORT TO SHAREHOLDERS Preceding year _ Increase $71,225,18382.65 14.2% 800,763,592 14.0% $71,868,937.94 $69,368,599.71 Average 5 years to March, 1939 56,845,044.67 2,099,654.25 6,251,740.21 1,198,643.48 95,083.01 8,512,085.58 155,793.08 504,331.92 & Loss Account, exâ€" 8$01,694.75 to the ,â€"slightly 100.0% 19.5 97.2 98.3 8.8 3.0 1.7 5.0 1.1 ricultural production is much above that of the other Dominions, and her geographical position adds greatly to her importance in this respect. The three essential foods which, by natural endowment, Canada is best fitted to produce are Wheat, Bacon and Cheese. And the Agricultural economy Qf Qanada is geared specially to make her the source of these three proâ€" ducts. With the experience of the last war in mind, there was little thought that too much of any of these could be produced. And yet at this moment there seems a possibility of an embarrassing surplus of both Wheat and Bacon. From the point of view of Great Britain, this may.seem an advantage, â€"inasmuch as a nearby reserve exists which can be called upon at any time. But from the point of view of Canada, the prospect has some anxâ€" ieties. For Agriculture is still Canada‘s basic industry, and Canadian econâ€" omic welfare hinges on the purchasing power of the Farmer more than upon any other factor. t K cce m t Mceries A Farmer cannot purchase other goods with Wheat or with Hogs which he is unable to sell. The Wheat situation does not come within the scope of this Report, and it is sufficient to say that with a carryâ€"over of $00,000,000 bushels, and a crop in sight of (perhaps) 400,000,000 bushels a problem faces Canâ€" ada for the first time as to how its Wheat can even be stored. . o No doubt the storage problem will be solved, and when it is, anxiety will be partly alleviated, for when properly stored, Wheat does not deteriorate. With Hogs it is otherwise. Hogs must be marketed when ready, and the Meats into which they are processed cannot be stored for more than a limited time. e o en rniea t es 3 T983 | ... ... l.eccoummmmevenn IOG4 | ... ..ccoacermvennvess 1985 | ........cuccsmters 1956 | .....cccccccsessense 1987 | ......emeeemereeer TOIS . Annmnnnnnnnccpenern 1939 (to Sept. 1) . In respect of Hogs it should immediately be said that up to now no serious problem has occurred. All surplus production has been bought by the British Ministry of Food. Record quantities have been shipped. The fact is, the war rescued the Canadian Pig producer from what otherwise would have been an embarrassing situation. It happened that just when war broke out, a marked increase in Hog deliveries was about to arrive upon the Canadian markets, By the‘terms of the Ottawa Agreements (1932) Canada had been given a Quota of 50,000 cwts. weekly. (Cwt.â€"112 lbs.) And, because of this outlet, Hog production had since then been the most profitable branch of Canadian Agriculture. But Bacon shipments had never reached the Quota, as is seen from the following table:â€" 1939 Sept. ................ 62,815 19% 38,518 â€"1.0% 24,297 45.0% OOb erorvrasmmammmins i 1013700 34.1 54,148 14.0 43,585 T1.7 NOV, .................. 110,849 48.6 54,560 25.9 56,289 80.1 D@C, c.ecccccssecscecccs â€"$6,561 52.1 36,965 27.3 49,596 77.8 1940 Jan. ... 78,639 38.4 371,628 30.7 41,011 46.3. F@D. ..:ecrecsriscenmmm» â€" 98,014 45.6 48,446 21.5 44,568 72.2 MAF. ...ccc.s» 88,602 31.7 47,033 14.8 41,569 57.8 SADT: eriminteasmarmene 1199019 50.0 53,694 43.6 41,625 59.0 May .................. 100,748 60.7 52,055 38.1 ; 48,693 94.7 June ............... $1,047 56.4 43,762 35.7 37,285 92.0 (Percentages â€" *indicate Increase as compared with previous year.) ‘The fact is, had it not been for the war, Canada would last Fall have had a serious problem to market her Hogs. v Because of the war, the problem did not arise. During the months when the runs were heaviest (October, November, December) the British Minstry of Food willingly bought all the Bacon Canada was able to ship. In due course a contract was made between the British Ministry of Food, and the Canadâ€" ian Government. The contract was for 50,000 cwts. weekly, but the Ministry agreed to take larger quantities in case they could be used. N 2 * o Ran LOIH Â¥anunser 1040 Manada ehinned wrac. PV I CEA IUUIUUIRIN N ETE AET S Hs ie etve ut npredene ul uce tinrernt cariteen AIe en Citlt ies Actually, from September 1939 until January 1940, Canada shipped pracâ€" tically all the Bacon of suitable type which she herself produced, and left herself without sufficient Bacon for domestic requirements. This deficiency was made up by importations from United States. 1 120. 1 ol omm t T ce o ie o Te B s nne EenA fien Ne n en ol AVERAGE Weekly SHIPMENTS TO GREAT BRITAIN OF CANADIAN HAMS AND BACON (Quota Allotment 50,000 ewts. weekly) pussi n o o oo mo,ani se s w 1994 o n aNB54 . ** w 1085 o mniaioomnnt Leasoas. ul 19g6 simm mt t ma6,074â€" * e ggar mmfi lt ga,ofd_ s yoss: amoentthmcinc e0,09 1. "* > ; 1939 (to Sept. 1) ... 28,686 " tA This failure to ship the allotted quantity was not due to indifference. 1t was the result of a succession of crop failures in Western Canada. Hogs cannot be produced without Grain, and in large areas of the West, farmers bad no Grain. â€" _ * ie in on s nau NV GRSLMEZ In 1938 the Western crop was large and well distributed. Many disâ€" tricts had feed for the first time in seven years. Thousands of farmers swung back into Hog production. The sows were, bred beginning September 1938, and it was realized that beginning September 1939, marketings would be much heavier, particularly in the West. But no one expected an increase so great as actually occurred. The extent of this increase is evident from the following table of average Wééi;fy 'Hog Gradings :â€" A Ac Cl a h 2A 2t f s wmnsAutestvrsendsstsdainid isnn ioind d d ie oo Pnd However, about the middle of January 1940, a new and important phase of the export situation set in. The British Ministry notified the Bacon Board (which had been set up in Canada to administer the contract) that stocks of Bacon in England had become embarrassing. They requested that for a perâ€" lod, shipments should bo restricted to the contract quantity. Later, â€" in tho month of February, â€" further notice to the Board stated definitely that shipâ€" ments must henceforth be Himited to the contract quantity of 50,000 owts. weekly, and since that date this limit has been strictly enforced. m 7 k a D . en oi ts e es Fu n alal" UAMDenCZIRIn : 2 OB O CartiiorCapaiioms_‘wied Pm . Abrvncenniy T 1 By this order, the whole Bacon position was transformed. Current marâ€" ketings were mors than sufficient to provide the export allotment (50,000 cwts.) plus Canadian domestic requirements. The situation was further comâ€" plicated by the fact that, in anticipation of continued unrestricted exports, large quantities of American Bacon had been bought and were coming forâ€" ward. Because of the now restricted export outlet, and of the relatively low price of the American product, these importations, had they continued, would quickly have broken down the price of Canadian Hogs. The dilemma was a serious one. The Government, after consultation with the Bacon Board and the Packers, decided that steps must be taken to restrict American imports, However, because of the Canadianâ€"American Trade Agree ment, such action could not be taken without full explanation to the United States Government. _ _ _ Considering the difficulties of the situation, the Canadian Government handled the matter with despatch. An agreement was arrived at, which was promulgated by Orderâ€"inâ€"Council, that beginning February 26th, 1940, Amerâ€" ican importations should be limited to the average of the period January to August, 1939. While the discussions were under way, Packers had agreed, at ghe suggestion of the Bacon Board, to discontinue purchases of American proâ€" uct. Since that date, imports of American product have rapidly declined. There has been quite wide comment in the press and elsewhere regarding imports of American Bacon, and it is worth while to state the facts, which are as follows:â€" (1) During the time that unrestricted quantities of Canadian Baâ€" con were being shipped to England, American Bacon had to be brought into Canada for domestic requirements. Otherwise > shipments to England would have had to be cut down. (2) These imports (of American Bacon) did not affect the price which the Canadian Producer received for his Hogs. That was based upon the price received in England for Canadian Baâ€" cor. (In April the price of Hogs in Canada broke, but this was 7 weeks after American importations had been checked, and was due to the growing apprehension that the purchases of the British Ministry would not be sufficient to clear total Canadiap, stocks.) (3) American Bacon was not sold in Canada as Canadian Bacon, ¢ nor at the Canadian Bacon price, (4) American Bacon was not reâ€"oxported to England, even to the extent of a single pound. tas (5) Throughout, the disparity in cost as between Canadian and American Bacor led to complications and complaints. Neverâ€" theless, so long as imports continued, all Packers were forced to handle American product. Otherwise they could not have met competition in the low price fleld, (6) Exporting Packers received a Drawback of the Duty which they had paid on imported American product. This also has been a subject of considerable comment. But the facts are very simple. The Drawback was made under a clause in the Canadian Customs Drawback Regulations, known as the ‘Equiâ€" valent‘ Clause, covered by Orderâ€"inâ€"Council, of 25th March, KUP Le evveervccescernce NCR ommareme DCCL annmnmnnnnmansnnanes C MINelerrenrenrnnnmemnens PODL arvenmnremenmansons IMERT. mnrvensonnncamnans CNDE erenvennsnnnsnmencns MAY . Armoomarredencare Tune ..AAAz to Sept. 1) ...... AVERAGE Weekly HOG GRADINGS All Canada . 61,254 . 58426 _ 57,102 & 72,089 _ 15,506 _ 62,304 . 59,569 Eastern Canada 29,939 25,474 26,169 36,142 40,879 38,268 35,842 Western Canada 31,315 32,952 30,933 35,887 34,627 24,036 23,727 Since the Ministry of Food informed: the Canadian Bacon Board (in Febâ€" ruary) that shipments must be restricted to 50,000 cwts. weekly, several evâ€" ents have occurred which vitally affect Britain‘s Bacon supplies. On April 9th the Germans invaded Norway and Denmark, thus cutting off imports of Scandinavian Bacon. On May 10th Holland was overrun, thus cutting off the Dutch supplies. From that date forward Canada became the sole external source of Cured Wiltshire Sides. If heavier shipments are not taker, Canadian Hog producers will this Fall find themselves in a most embarrassing position. Beginning in Septemiber or October, 1940, it is certain that Hog marketâ€" ings will heavily exceed all previous records. The Canadian Farmer has proâ€" duced these Hogs in the belief that by so doing he was playing his part in the general war effort. Because of the experience of the last war, everyone (inâ€" cluding the British Ministry of Food) took it for granted that all the Hogs which Canada could produce would be needed. Present forecasts aro that in the coming year (October 1st, 1940 to Sepâ€" tember 30th, 1941) Hog marketings will be 6,000.000 as compared to 4,827,000 in the present year (October 1st, 1939 to September 30th, 1940 â€" Augustâ€"Sepâ€" tember estimated), If this forecast is realized, the surplus available for export will be approximately 75,000 ewts. weekly. Further, because of the necessity of restricting importations of feeds, Briâ€" tish Pig producers have been enjoined to cut their herds to oneâ€"third. But notwithstanding all these facts, the British Ministry still informs the Canadian Bacon Board they do not wish heavier shipments from Canada. For this surplus Great Britain is the logical buyer, and it is earnestly hopâ€" ed tl_)_q British Ministry of Food will lay its plans to take all of it. This, it is believed, the Ministry can easily do. For, with shipments from Canada of 75,000 cwts. weekly, total supplies will be barely more than oneâ€" half normal consumption, and will not exceed the total involved in the ration â€" 4 ounces per person per week.* market unless, in addition to quantity, she also produces the quality of Hogs desired. During the last war, this fact was lost sight of. As that war progressed, Canada produced increasing numbers of Hogs, but the quality deteriorated. After the war, as soon as Danish Bacon was again available, Canadian Bacon was pushed off the British market. *â€"NOTE.â€"Since this Report was set up in type, exports of Bacon have been stepped up for a period. It is hoped this stepâ€"up may be the forerunner of an increased scale of shipments. Pig production in Canada is now much more important than ever before. If, at the end of the present war, Canadian Bacon were again pushed off the Britiip market, tl}e disaster to producers would be one of first magnitude. The only safeguard is, during the war, to produce exactly the tyi)-e of Bacon the British consumer wishes. So that, at the end of the war, the Briâ€" tigh consumer will demand C_angdign_Bacon instead of refusing to eat it, The present is Canada‘s opportunity. She is now almost the sole external source of supply for British Bacon, and this may continue for a period of one or two or three years. If, during that period, Canada provides the British conâ€" sumer with exactly the type of Bacon he requires, then the demand at the end of the war might be for Canadian Bacon, and the dream of sixty years might be realized. Canada would find herself in the preferred position on the British market which Denmark has held for that length of time. Canada Packers Ltd., has now 5,500 employees. During the year under re view, Plant efficiency was further advanced. This was reflected in improve ment in the quality of products, and at the same time reduction in the cost of producing them. To that end, one change in trade practico would contribute more than all others:â€"viz. that all Canadian Hogs should be marketed on a dressed weight ‘basis. This would make possible accurate grading, both in respect of quality and sizeability, and would permit accurate apportionment of premiums for Seâ€" lect Hogs, and penalties for undesirable types. The adoption of universal rail grading is a step which can be enjoined only by the Federal Department of Agriculture, and it is to be hoped that no time will be lost in establishing this practice. ineviinadl, wany ttinig 9e tos""eriitihesinabiiricadiites ied neas? ht 1 1nd iva i e in cce s t ie o e t e In the last ten years, substantial progress has been made in improving the quality of Canadian Hogs. This has been done largely through the estabâ€" lishment of testing stations in which the best strains are given R.O.P. (Record of Production) rating. And this improvement is being maintained. One last step still remains to bo taken, It has to do with the ‘sizeability‘ of Canadian Bacon. The British market demands Wiltshire Sides of lean type weighing 55 to 65 lbs. At present only about 55 per cent. of the Bacon shipped from Canada falls within this range, as compared with 95 per cont. of Continâ€" ental Bacon (while Continental supplies were still coming). During the coming year, because of war conditions, the problem of Plant efficiency will be one of steadily increasing difficulty. The loss of experienced men due to enlistments will be heavily felt. To meet these difficuities as they arise, the Directors bespeak on the part of all employees, the same spirit of loyalty and coâ€"operation as in the past. A copy of this Report will be mailed to each employee. At the last Annual Meeting authority was also given by the Shareholders to appoint a Director representing Lifve Stock Producers, No appointment has yet been made under this authority. Advice has been sought of numerous perâ€" sons prominent in Agricuiture, as to a method of selection which will carry theia,ggroval of Live Stock Producers generally. As yet no such plan has been arrived at. In this advance, the chief contributing factor has been the skill and coâ€" operation of the Company‘s workpeople. For this, Directors, on behalf of the Shareholders, extend to employees of all ranks, their sincere appreciation and thanks. Directors had pleasuvre, during the year, in welcoming to the Board an Employee Director, as authorized by the Shareholders at the last Anmnual Meeting. The first person elected by employees to this office is Mr. Geo. J. P. Ayers, a workman on the Beef Cooler Staff of the Toronto Plant. His fellow Directors have pleasure in testifying that Mr. Ayers‘ services have been of high value to the Company as well as to the employees whom he specially re presents. The Directors and Shareholders are sincorely anxious that such a plan may bo found, and it is hoped that within the coming year the appointment may be made of a Director who will specially represent Live Stock Producers. TORONTO, August 19th, 1940. J. S. McLEAN, President. Extra copies of this Report are available, and so long as they last will be mailed to anyone requesting them. Address to Canada Packers Limited, Torâ€" onto. TWO GUESSES The censor allows you two guesses at the identity of that new place name in the news, "An Eastern Canadian Port." WHAT AILS US What ails this continent is too many people in too many cars in too much of a hurry going in too many different directions to mowhere for nothing. € DIPLOMATS Weed inspectors must be supâ€" erb diplomats. If weed inspectors in some municipalities really did their duty they would be drawn _It must alw_ays be kept in mind that Canada ha.s no claim on the British â€"Quebec Chronicleâ€"Telegraph 1920, and subsequent amendments. This Clause had been a part of the Customs Regulations for 20 years. Canadian Packâ€" ers had had no part in having the ‘equivalent‘ principle estabâ€" lished. It applies not only in respect of Mext exports, but of all Canadian manufactured products. Under this ‘Equivalent‘ Clause, Canadian Packers were clearly entitled to a Drawback of the Duty paid: â€" American Bacon was imported, â€" equiâ€" valent Canadian Bacon exported. However, a complicationâ€"arose in respect of nonâ€"exporting Canadian Packers. Inasmuch as they did not export Canadian Bacon, they were not entitled to a.Drawback of the Duty paid on American Bacon. Nonâ€"exporting Packers protested, and beâ€" cause of this the Drawback privilege was cancelled. Cancellaâ€" tion was made retroactive. The retroactive feature was clearâ€" ly unfair, as the Customs _Department had ruled that the Drawback applied, and most of the product had already been sold upon that understanding. In other respects exporting Packers agreed with the ruling. (7) Much of the discussion on the subject of American imports overlooked the fact that the Canadianâ€"American Trade Agreeâ€" ment was involved in the issue. This Agroement is of high Â¥alue to Canadian Farmers, inasmuch as it provides the only outlet for Canada‘s surplus Cattle. Moreover, the discussion lost sight of the fact that, even in respect of Pork Products, the movement is frequently in the other direction, that is from Canada to United States. It is indeed quite possible that within the next few months United States may be a very welcome outlet for some of Canada‘s surplus Hog product. It has been so many times in the past. V OIC E PR E S S â€"Vancouver Province. W hs eaciaton ankge t Xo het aâ€" Bomalige o THE CHILDREN‘S CHANCE The character of most (chilâ€" dren) is influenced by environâ€" ment. Social workers who deal with neglected children see daily the miracle of astounding change come about in a child. An ailing, cowed, inhibited, backward, antiâ€" social little creature canbe helpâ€" ed to turn into a robust, bright, ambitious, ingenious, creative and well adjusted boy or girl. It is literally true that as a result of the good care that is given them, their own mothers cannot recâ€" ognize them. Thus if any British or refugee children who come here show marks of former negâ€" lect ‘and lack of opportunities, they should, through the care and understanding offered them in Canadian homes, develop into healthy, useful citizens of the Empire.â€"Toronto Star. and quartered. _ ONTARIO ARCHIVES : TORONTO Farmer‘s Advocate. Forests have another function in their relation to trout streams. In the winter the snows are heli by wooded lands and in the spring they are slow to melt, allowing the water to sink into the earth. The surface runâ€"off is light and free from silt. At other times of the year the heaviest rains wiil not cause floods for the trees and the litter of the forest floor retards the water until it sinks into the ground or is evaporated into the air. All the water that sinks into the ground eventually reappears in the springs, perhaps months later. Thus, forests proâ€" tect and hold constant the flow of trout streams. Floods And Fish The food of the trout is largely aquatic invertebrates of various kinds. Insect larvac, that live in the vegetation and under the stones; crayfish and sceuds, dwellâ€" ers in the ooze of the bottom; these are eaten throughout the summer. In winter and early spring these creatures are dorâ€" mant in nooks and crannies under the water. If the spring flood as light, most of them survive. If the flood is heavy, the bottom of the stream is scoured clean and few animals will survive. Streams subject to heavy flooding will not carry as many trout as will streams in which the floods are ligh.t The common houso!lly is notorâ€" ious for the part it plays in spreadâ€" ing dangerous diseases, such as tyâ€" phoid, infantile diarrhoea, tuberâ€" culosis, cholora, and dysentry, Ji is a menace to health because it breeds in filth and may pass dirâ€" ectly to foodstuffs. Particles of de caying organic matter, bacteria, or other living organisms cling to its hairy legs and body and sticky feot and mouth parts. It is computed that one fly may carry as many as 1,000,000 germs, that a female housefly may become a great grandâ€" mother in 60 days, layinzg around 2,100 eggs during a lifetime of three months. Summer droughts are also harmful to the trout streams. Most parts of the Province have a rainfall that varies somewhat from season to season but over a period of years the average amâ€" ount remains constant. If the runâ€"off from a season‘s precipitaâ€" tion is carried away in a fow weeks the rest of the year the streams will be nearly dry. Heavy floods in the spring mean dry watercourses later in the summer. Under natural conditions we have ample moisture for all our needs. Actually, most of the time we are short of water. Common Housefly CARRY 1,000,000 GERMS Houseflies are particularly danâ€" gerous during warm weather from midâ€"summer to fall, when they are most numerous. The most effective method of controlling them consists in eliminating or reducing their breeding places by properly treatâ€" ing or disposing of manure and of garbage. RURAL CONTROL In rural sections, where practicâ€" able, the manure should be remoovâ€" ed daily and spread thinly on the fields where the drying effect of sun and wind will provent breeding. An alternate method consists of taking advantage of heat produced by fermentation when manure is placed in tightly packed piles, The heat produced by fermentation desâ€" troys all fly eggs, larvac, and pupâ€" ae, except perhaps those close to the surface of the top layer. The application with a watering can or sprayer of a solution of borax conâ€" sisting of one pound of borax to six gallons of water will destroy any fly stages in the top layer of the packed manure. Washing Tips A good general rule for washâ€" ing woollens, silks and rayons is to use plenty of mild soapsuds, lukewarm water for the entire washing and rinsing processes, gentle, but quick handling, ab>â€" sorption of excess rinse water between thick towels, and drying in moderate temperatures. These fabrics should not be soaked. A Menace to Health Their Breeding â€" Places Should Be Eliminated by Proper Dispoâ€" sal of Garbage (No. 6) By G. C. TONER Summer Drought To Remember