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THE OSHAW / ' __..ESDAY, JANUARY 15, 1930 PAGE SEVEN LOVE SS | .staliment Seve. Janet Lane has been poor all ber life. She lives with her father en. mother in 2h old-fashioned tw »-family house in Brooklyn. In the other half of the house live Acclaide Morris and her parents. Janet and Adelzide have been frionds since childhood. Mr. Lane tells them of his new tant at the filling station -w ahe works aid Adelaide per su: os Jaact to slop by on their way home for an intrcduction to Ja cs Warren. She gets him to i2..%2 + 3 to dirner, ut the next « y tells Janet that he took her to a very ex: ensive place to dine, id that he is too "igh hat" for ev. Janet, however, is attracted to 1 and he to her . He asks Mr. Iane to invite him to his house for supoer and finds himself even moase interested at this second :23ting. From the Lane hcuse E> goes to his own home, not the cli: p bo rding house where Janet E>"aves he lives, but to a huge b->wastons house in uptown New Yok. He is admiticd by a butler ard shown promptly into the lib- r + wh- e his father, t"2 presi- & ~: of tka Ilirazle Oi! Cominany, is cry rlad to see Fm. Jimmy S er thet he kas fall-n in 'ave with the dav~htor 6f the r= 1 who runs the st-tion, Mr. Varren oes mo chjection he- cause Janet is poor, but ma':es Jimmy promise to remsin plain James Warren and tell no one } "lied and Mr. Wa ren t" this will be a go"d ide=. and son part gnd Jimmy, retrros to his boarding house determined to keep his se-rct and woo Janet at the same time. The Trip to tha Studia Janet paid the teleph:ne rent in the L-ne household, Until she hid g.ne to work they had, never been | able to afford one, and even now Mrs. Lane often wondered if it were not an extravagance. But Janet in- sisted on keeping it. There were not very mcny calls for her, but her mother found the telephone a gre:t convenience and took pleasure in gssiping with her neighbors over it. So, when it rang early in the eve- ning of the day following the one in which James Warren had come to supper, Janet supposed it was for her m .her and went on reading the psper while her mother went to an-| sv.er. Presently Mrs. Lane came into the living room. "It's for you, Janet. | It's that young Mr. Warren. He| wished me good evening and asked! how we all were, and then said he would like to talk to you." Janet put her paper down. "Maybe | he wants to change that date I made | to go to the theatre witli him," she | told her mother. ! But it 'was not for that purpose | that Jimmy had called. "Are you too busy to go with me this evening to see my sister?" he asked after | the greetings were over. "She has | a studio," he went on, "it's rather | an amusing place to go and I haven't been to see her for several weeks. I] thought you might enjoy »going' along." Janet hesitzted. She had* promised ficrself that she: would go to the theatre with him, as she had ar ranged, then she would not see him | again; she liked him too well and yet he did not fit into her dream- house at all. But in spite of this determination she heard herself say ing: "It's awfully nice of you to ask me--I think I can go. When would you like me to be ready?" "Right away," came the answere "I ¢an get over in a jiffy from this bourding-house where I'm living; it's only three or-four blocks from your House. Say half an hour; will that be 2ll right?" "I'll be ready," Janet promised. € » cou'd rot escope the interested glitter in her mother's eyes, nor help hearing Mrs. Lane whisper to her husband, "He's asi'ed her to go to meet his sister with him." These approving lnoks, cast at her when she ¢rrie down dressed ready for girect, irritated her, even though they came from her own father and mo her. She felt rebellious and; w hed she hdd said no. . But these f:¢"nns vanished when James, came | in f r_her, stqpped for a.courteous ¢"1-¢t wth her father and mother, and then with an air of satisfacticn, took her with him into the spring night. Janet and Jimmy She stole a sideways glance at him as they walked to the subway, He was goodlooking in a tall, outdoor wov. And he was nice, nice to her gn n'ce to her parents, -He was indeed a very superior young man ¢mpardd with other young men she HY the, » had gone out with. Why, oh why, did he have to be a clerk? Why couldn't he have been a lawyer or a doctor or a young business man? Some one with a future ahead of him, at Yeast. Janet thought of her dream-house; he would fit into it very well, so far as appearance and man- ner went, but----- - Janet caught herself back from her dreaming. "I hope you will like my sister, Mildred," he was saying. "She's trying to be an artist; doing very well at it, too, I think she has actually sold two or three pictures. She has a rather nice little studio and she lives pretty well, does just about what she pleases, but really works very hard most of the time. Our mother is dead--so Mildred lives alone." Pe Janet did not ask about his father, assuming somehow from his tone that the elder Mr. Warren was also dead. "Painting must be very in: teresting," she said. "Does your sis- ter paint pictures of people?" "Oh, she does some portraits, but she likes other things better -- big buildings and the skyline of New York and workmen in the streets. She does some very clever cartoon- ing, too, and sells things now and then to the magazines." Janet envied the girl they were talking about. "I haven't a single talent," she said rather wistfully, "unless you count being a good ste- nographer a talent: I can make a neat pare of typewriting, but that's about all." "You don't meed any talents," James assured her, "you're awfully pire just as you are." Janet flushed, and he went on: "D> you mind very much if I call yon Janet? Your name seems to suit you better than any other girl I know." "I'd like you' to cal she said simply. "All my friends do." "And will you call me Jimmy--all my friends call me that." Janet launhed, then snid hastily, "Oh, I'm n-t laughing at you, but when I first heard your name from | 7~d I kent savin it over to myself 'James Warren, Jimmy Warren,' just like a rhyme, even the wheels of the 4 t-~'n 3 d it" th~t wos funny, wasn't it?" | 4 s~'d, well pleased. "So that's 211 scitled, You're Janet and I'm Jimmy--J- fet and Jimmy -- they sound sort of cute together, don't they, our two names?" Janet had to nod and she hated herself for blushing again. The noige of the svhway kept them from talk- ing much, but when they were out of the train and into an old square where trees and flowers grew and children play inside.the iron fence, Janet found herself admiring the night, 'the distant lights of the city and the subdued noises of the streets. "It's lovely here, isn't it?" she sighed. "It's one of the nicest parts of old New York," he told her, "One of the last to be spoiled, ton. Why, all these 'old houses around here have big fireplaces and--but wait till you see Mildred's studio--it's much nicer than Greenwich Village, I think." Mildred They went up some steeps stairs in an old red brick building and Jimmy knocked at a door on the second floor. Jonet opened her eyes very wide at the sight of a neat maid in black and white who smiled at Jimmy and said, 'Come in, Mr. James, Miss Mildred's expectin' you." "Helln, Lucy--I'm lookin forward to some of your waffles later on to- night," Jimmy answered and Janet saw the maid's white teeth flash in a smile. Then there was a commotion from the big ottoman in front of the fire- place where a wood fire crackled, "Oh, you precinus, precious Jimmy!" some one cried, and Janet saw a flashing figure dressed in green run the length of the room into Jimmy's @rms, "Whoa," Jimmy cried, catching her. "You'll scare Janet out of her sen~es if you d-n't ealm down, Mil dred. Janet this is my big sister, Mil- dred--can yeu believe that she's fully 20 years older than I am----"" Mildred detached herself from Jimmy's embrace and held both ands out to Janet. "Don't you be- "ave him, Jenet Lane. I'm just two voors older and I look younser and I'm lots smarter, Come over to the fire. I know it isn't cold, but I felt blue for some resson and I made Lucy build me a fire" She led the way to the hearth where big easy ch~irs stood in friendly vacancy on either side, Di- rectly in front of the fire was a big brown leather ottoman wide enough for several people, shiny from use, and invitingly comfortable. While Jimmy took her hat and coat Janet wns thinking to herself, "I must have ' me of these in my dream home some day." She said nothing aloud, but Most Heat for the [Ioney CONGER'S high grade REGISTERED got J Anth ucite Coke Pocahontas Conger high 52 King St. E. ' Phones: 871-931-687W fuels are each selected for low ash, long burn- ing and high heating efficiency. | Co. Ltd. J. H, R, LUKE" Oshawa Manager. A 0a me Janet," | By Barbara Webb Copyright by Public Ledger she felt suddenly shy. . But shyness couldn't last long with Mildred Warren to lead the conver- sation. She pounced on a book of drawings and drew Janet down on the ottoman beside her, "Maybe you will think this poisonously dull, but I just found a sketch of the most heavenly living room and the minute I get enough money I'm going to throw out all this trash----" she made a gesture toward the room be- hind her, "and do mine just like this." Janet looked from the picture before her toward the charming livable room and said, "I think this is an awfully nice room just as it is." "Oh, do you?' Mildred cried. "You're a perfect duck to say so---and 1 think you really mean it. 1 can always tell when people are just say- ing nice things and when they are really meaning nice things. There's a great difference, don't you think?" Janet nodded her head, happy all at once, comfortable, feeling that she belonged here in front of the fire with this lovely girl in the green evening gown, the green slippers to match, and the big green ostrich fan thrown carelessly over a chair. Jimmy joined them then and Mil- dred sprang to her feet. "You must see what I've been doing, you two. I think I'm going to exhibit at the Young galleries next week and I've been hanging things in the studio today to get the effect. Would you like to see them, Miss Lane?" "Very much," Janet said. "Wait," Mildred commanded. She reached out her hand and pressed a switch, flooding the room with light. Janet blinked at the sudden bright. ness and Jimmy stared at his sister in humorous surprise. "I thought so," Mildred cried, "I Inew it the moment I saw you come in with Jimmy. I'll have to paint you--you're exactly the type I've tern looking for--will you sit for me?" Jimmy answered for Janet, "Miss Lane is pretty busy," he said. "She works all day, you know, harder than you do--" could come Saturday after- noons," Janet offered, "or Sundays if you're not too busy then----" Mildred looked at her speculatively. "Come and see my pic 8s first-- we'll talk about your portrait later. Maybe you won't went to sit for me after you see the way I paint." (To Be Continued Tomorrow) DIRECTOR SAYS STAGE MUST USE ~~ SCREEN METHODS | an Microphone Technique will | Be Widely Adopted, Is Belief of LeRoy The screen is throuszh borrowing stage technique, and it will short- ly be the stage's turn to borrow rom the screen, That is the opinion of Mervyn Le Roy, noted film director, whose latest hit, "Little Johnny Jones," a duction, is coming to the New Mar- tin Theatre Thursday, Le Roy belleves that the talk- ing motion picture will force the stage to borrow part of its me- chanical equipment, first of all, for the sake of greater realism. "Stage whispers, asides, and the shouted conversation intended to reach the cach customer in the ack of a theatre are unrealisti®, and now that the 'talkie' is reach- | ing perfection, {ts mechanically | transmitted whispers, and realistic | conversations, with their greater | voice flexibility, will force the ~tare to borrow our microphones, declares Le Roy. "With concealed microphones on the stoge, a whisper may be a whisper on the stage and at the pack of the house at the same time. Nor will it be necessary to mispronounce certain words and nse painfully round enunciation 2 e heard by the man in the far- thest row." Le Roy is one of the foremost and most aggressive adherents of realism for both stage and screen, a belief cultivated by much exper- tence in both mediums. "Little Johnny Jones" as it has come to the -screen, With Eddie Duzzell, the famous Broadway comedian, Alice Day. Edna Mur- phy, Robert Edezom, Donald Reed and (ther favorites in the ast, is an example o. this adherence to 'oalism. Tho famous George M Cohan musical comed; becomes iy appealing love story against a 1 vid background of small town life. lew York Ci.s nicht life, English ~lum lifo and the race tracks Of two nations. Only two of the song Lits of the sriginal "Little Johuny Jones" will be retained. "I'm A Yankee Doodle Dandy' is one of them, and "Give "1y Regards to Broadway" is an- ~ther. Five new songs have been -ritten. While comedy elements vo abundant, the screen version . a realistic love triangle with the +ills of horse racing culminating the running of the rby at Epsom Downs. a ---------- \ bishop was paying a visit to a ain parish and decided to address children of the Sunday school. He noticed many. posters referring the "Bishop's visitation," and ac- lingly began his talk by asking children the meaning of the word ilation." , Pleage sir," replied a youngster, 's a plague sent by God." New seating in the Legislature at | yueen's Park is in the form of a 'orseshoe, Is this in honor of Fergy's prowess in pitching 'em?-- Toronto Telegram. Lilac bushes are in bud and the squirrels are running around the First National and Vitaphone PIO Tul English |, streets thus early in January. Looks like an early spring. Perhaps winter wil pay a return visit in March.-- Guelph Mercury, CANADA'S GROWTH MAY BENEFIT TRADE IN NEW ENGLAND Seaboard ' States / Showing Keen Interest in Domin- ion's Industrial and Mining Development Boston, Jan. 14--"For material welfare in the future New England will look to Canada with increasing eagerness," says a writer in the Bos-' ton Lvening 'Aranscript, The business relations now existing between the two will gather new importance from the vast natural resources in ong and the established purchasing power in| the other, as well as from the rail- road lines that connect the two." Already of tremendous importance, this exchange of business will see rther development along new lines, for the basic industry ot Canada 1s now undergoing a transformation from agricuiture to manufacturing and with it will come, the Transcript claims, a change in the country's po- atical structure to give tariff pro- tection to the manuacturers instead of to the farmers. Such is the present trend of thougnt in Canada, gencrated by the new economic complexion of miner- «Lzed areas in the provinces of Que- vee and Ontario which are just be- w.nning to reveal the reality ot their p.oduction vaines in silver and gold, nickle, copper aluminum, cobalt as- bestos, etc. With this situation in mind the «wo gicat rairoad systems, the Ca- Lauglan National and the Canadian Faciiic, are more conscious than ev- er of the importance of the role they must play, and the significance of their position in the future relation- ship between New England and Can- waa, 'they will be -conspicucus in the clure of the iulure railroad map i New England, :ad undoubtedly will let the weight of their silent ar« gument fail against tue trunk line proposals of the Interstate Commerce commission. 'their arguments along nis line will be expressed by what wey aready invested in existing .nes in New England, aggregating wore than $55000,000 and the great vowme of New England traffic they alreaay carry, rather than by any political agitation that they must set in motion, tor throughout the negu- tiations they will agsume the atti- tude of delerences that 1s expected rom foreign interests. Following directly in line with the development ot New England trainc «he Canadian Pacihc Rauroad pro- poses to extent its service by joining witn the rastern Steamsmp Lompany .n bunamng a tourist hotel at Yar aoutn, next spring, to turther stim- wate the tourist busmess between ~ew knglanda and the Provinces of Nova Scotia, Prince Edward Island and New Brunswick. Of immediate importance to the New rogiand manutacturer in his etrorts to reach the great Westefn markeis, 1s the preservation of Lan- agian wiferential routes, over which the rate 1s much lower tnan the more direct American trunklines. Both of tne Canadian railroads are anxious to mamntain these difieren- s both for their own advantage &s weil as New lingland, but in or- der to do so there must be enough traffic carried over them to INsure a paying pioposition, Canadian lines can negotiates with a strong New england group, for freight, tar bet. ter than with a trunkline that would saturally be "wore interested in keeping freight on their own lines. Under the American railroad law no railroad 1s compelled to shorthaul it- seit. and of the bigger lines control- ied New England railroads, their first .hought would 'be to send their ire.zht over their own lines and turn as hitic of ® as possible over to the Canaa.an connections in New Eng- ;and--thus drying up the differential service. Another important factor is the iast growing mining operations on Canadian territory, just over the line from New England. The products of these mines are coming into New England in increasing quantities from year to year as they become morc fr available. New England industrres will profit by their nearness--a new situation that creates more freight both for Canadian and American cailroads, y They had plighted their troth and were talking things over, They both decided to be quite unlike other mar- ried couples--forbearing and long: suffering and patient with each other. "No!" said the man, "I shall not be like other husbands who get cross and bang things about if the coffee is cold!" "If you ever did," said the girl sweetly, "I would make it hot for you!" And the man wondered what she meant. COMBINATION The ragman was asked why he put the two words, "Rags and bottles!" together. 'Because wherever you find many bottles, you find the rags" was the answer, M Of money put into stocks the old saying may be true that "what goes up must come down," but it doesn't always come down in the same place.--Springflield Repub- ilecan, PILES! name A. Wh Mesrilt on the NATURE'S PILE REMEDY Sold by Karn" Store, T. B. Mi Eo Fhompeon: and Suey ng B & Eighty-th'rd Annual Mee'ing Canada Life Assurance Co. Mr. Leighton McCarthy, President, Makes GENERAL BUSINESS REVIEW Canada records for 1929 another prosperous year, notwithstanding the fact that she has experienced many baffling and disturbing conditions, created principally by the reduced crop in the Prairie Provinces and the slow movement of the grain to the export market, and by the stock mar- get debacle in the United States and Canada, which closely approached the proportions of a panic, and was checked only short of complete de- moralization. Individuals lost life- time, savings, and in "many cases more. Business suffered a setback in some lines, and if not in general only b of the unpr d existing prosperity. It seems rea- sonably certain now that, so far as Canada is concerned, there will fBi- Annual Address cent. of the world's nickel; 85 per cent, of the world's asbestos; 85 per cent, of the world's cobalt; 9 per cent. of the world's gold; 8.7 per cent. of the world's lead; 8.4 per cent, of the world's silver; 6.4 per cent. of the world's zinc; and 4 per cent, of the world's copper. This indiistry seems each year more clearly to assure its permanence, FORESTRY, PULP AND PAPER 'The primary forest Industries in Canada, together with the manufac- turing industries using forest prod- ucts as their raw materials, have experienced remarkable prosperity in 1929, and evidently expect even great- er things in 1030, Production of newsprint in the first eleven months of 1020 has reached the unprece- ted total of 2,496,564 tons, as com- low a business r which should not produce any lasting hurt. We are assured by our foremost Fi- lers, Stat, kers and the Chief Executives of our two great Rallway Systems that the trade con- ditions in the various Provinces ex- hibit upon the whole, not a banner year, nor a cloudless sky, but sound basic conditions, There never was a time in the history of Canada when business as a whole has been at a 4 higher peak than during the year; 1929, or when the developed sources of our wealth were more wide and varied than they are today, and never a time when the earning power of our people was sustained in so magy channels of production. Funda- mental conditions are sound, and there is no reason for apprehension as to the ultimate future of our Country. FOREIGN TRADE The 'Foreign Trade of the Domin- fon has suffered in volume and value by the diminished grain crops and the slow movement of wheat to fore elgn markets. Our total imports for the twelve months ending on the 31st of October, 1929, were $1,303,481,475.00, and our total exports for the same period $1,307,972,111.00, thus leaving favourable balance of $4,490,636.00. Oux export of farm products for the twelve months ending 31st October, 1929, was $671,457,485.00, as against, for the same period the previous year, $811,800,757.00; or a de- crease of $140,433,272.00. 'The decline ig our favourable trade balance is evidently partially ac- counted for by the smaller crop, but more so by the wheat being held, looking for higher prices, and not yet being exported. HYDRO-ELECTRIC DEVELOPMENT Hydro-Electric power becomes each year more and more prominent as one of Canada's most stable and valuable resources, and the steady growth of water power development witnessed throughout the Dominion during the past few years was sub- stantially maintained during 1020. The total capacity of new installa. tions brought into operation during , 1920 amounted to 378,400 Horse Power, bringing the total installations for the Dominion to a figure of 5,737,600 Horse Power, There are undertak- ings under active construction which, according to the programme -pro- posed, will add more than 1,600,000 Horse Power to this total during the next three years. It is apparent, therefore, that the rate of growth of recent years will not only be main- tained, but will be considerably in- creased, and we are informed by the Government Department that there is yet awaiting development approxi- mately 30,000,000 Horse Power, FIELD CROPS Weather conditions in the Western Provinces were very unfavourable for the growing of crops. Tack of rain was general, and in some districts induced total crop failure. In the more fortunate districts where crops were induced to mature, the grade is exceptionally high, and generally, while the crops of 1039 do not 'equal in volume those of 1028, nevertheless, with the better grade and higher prices which the operators of the] th Wheat Pool .and the independent operators expect to receive, it is esti- crops, when marketed wil MINERAL AND METALLURGICAL DEVELOPMENT The Mining Industry of Canada ring 1029, been most active, has a new put, when the value of production amounted to $303,876.000.00, or 10.5 per cent. greater than the preceding year, Canada now produces 90 per pared with 2,173,498 fons in the cor- responding period of 1928, an increase of nearly fifteen per cent. over what was itself a new high record. While this Industry has some baffling con- ditions to contend with, it is appar- ently permanently and firmly estab- lished, BUILDING CONSTRUCTION The marked trade activity of the last five years has caused very exten- sive building construction, and the | undertaking of very important en- | gineering works, Residential, of- | fice, warehouse and factqgry build- ings outstrip all previous records. RAILWAYS Our Railways have suffered in rev- enue by the recession in business | | through the Jast two or three months | of the year, but we are assured vy the Chief Executive Officers of each | that they see no reason for alarm; | | | that our Coyntry and its resources | have not altered in these months; that they propose to proceed with | courage in those things which relate | to the maintenance and improvement | of their properties, They have each | 'stated their faith and belief in Can- ada and her resources, and in hér ability to continue her upward march in wealth and development. DEVELOPMENT AND STABIL- IZATION OF CANADA The Maritime Provinces, conse- quent upon the investigations of the Duncan Commission and the imple- menting of their recommendations, are finding a definite and increasing | assurances, which, having regatd to stantially continued. It is bard to realize the dimensions to which the, shipping industry of this Province may increase, a§ Canada develops her resources and as the use of the Panama Canal is developed, and as Japan and China take more and more of what Canada produces, Truly it may be said that, with such a vista as Canada now has, a mere recession in business should not dull our vision or affect our courage, nor make us in any way lose faith in Canada's future progperity, MAGNITUDE OF LIFE INSURANCE BUSINESS It is estimated that the amount of Life Insurance in force on this Con- tinent passed the huge total of one hundred and six billions of dollars on the 26th of July last. A most strik- ing fact is that, while it took seventy- nine years for Life Insurance in United States companies to reach, in |' 1922, the first fifty billions of dollaf®, the second fifty billions has been | achieved in a little more than six and a half years, The amount of insurance in force in Canada in 1922 was $3,171,388,996, and at the end of 1929 it is estimated that there would be $6,500,000,000.00. Thus it will be seen that the increase in Canada is apparently proportion ately keeping pace with the growth in the United States. The amount held in reserve to pro- tect the $6,500,000,000.00 of policy contracts isj approximately $1,5600,- 000,000.00. is vast sum does not lle idle, but is in the meantime used for the purpose of developing agri- culture, fopd production, transporta- tion, and in general public works everywhere. Life Insurance gains momentum each year, but is still far from the ultimate goal, as our people have not yet purchased life insurance suffi- cient, on the average, to indemnify their families against death for much more than one year's earned income. CANADA LIFE PROGRESS For our own Company the past year has been exceedingly satisfac- tory. The intelligent, well-directed efforts of our Associates in the field have paid for $161,838368.00 of new the trying conditions of the last few months of the year, is a splendid tribute to the calibre and loyalty of our representatives in the field. The result of the year's work has been to increase our business in force to the sum of $973,309,374.00, an increase for the year of $91,683,233.00. It will be observed that we have nearly reached the one billion dollar mark. It is anticipated that it will be reach- | ed before the end of March, 1930, I congratulate most heartily all the members of our Office and Field forces in Great Britain, Ireland, the United States, Hawaii and Canada, and desire to express my gratifica- | market for their products within the | limits of the Dominion, and they are gressiveness and optimism that char- acterize Canadian industry as a whgle. The Pulp Industry in both New Brunswick and Nova Scotia is {and increasing demand for brine frozen fish has produced a market which promises much for fishermen ' in these Provinces, | The people of Cape Breton are anticipating with much _hope the carly announcement by the British Empire Steel Company of its plans for increased employment and pro- duetion. Conditions in the Maritime Prov- inces have not for many years been so satisfactory, The Province of Quebec, with its development of water power and attendant industries in the Lake St. John and Saguenay District, and the Bt. Maurice, Gatineau and 8t, Law- rence Rivers, and in the vicinity of Montreal, together with the mineral development in the northwest por- tion of that Province, and with the large Pulp and Paper industries, already successfully established, has shown a most satisfactory expansion and growth. The Province of Ontario, with its tremendous development in the Sud- bury and. Northern districts, together with its Pulp and Paper, Hydro- Electric and other such industrial de- velopment, likewise has shown most satisfactory . expansion and growth. The pd Shinn made in my address of last year with reference to the stabilization of the Prairie Provinces seems to have been abundantly justi- fled by what has taken place during the past year, and the plans for yet greater development in 1830, The Hudson's Bay Railway has become § reality. The Peace River District has been opened up. The area of its agri- cultural lands has been placed by Federal Government statistics at 47,000,000 acres, that is almost twice e acreage from which Ontario derives an annual agricul - duction more than half a billion dollars. It is double that frém which Western in 1928 five hundred million wheat, of ficlent facilities for enabling the re- sources of this vast territory to be properly, fully and economically de- In British Columbia the mineral and water-power resources have easingly developed, and the not only greatly improving economic | being rapidly developed, and a steady | in | estate, mortgages, bonds and stocks, tion at thelr splendid work. I leave |it to the General Manager to speak Insurance Department of the State of New York, whose standard is univers 'sally and properly regarded as oute standingly high. We still hold a high proportion of our assets in Governe ment, Government Guaranteed, Pro- vincial Gover t and Municipal Bonds and Real Estate mortgages. Despite the smaller crop in West- ern Cancda, our payments of prin- cipal and interest have been met in a gratifying manner, and our mort- gage business generally is highly sat- isfactory. Our large and diversified mortgage business, amounting to upwards of $55,000,000.00, is a big actor in our total earning power, which this year shows the satisfac- tory average rate of yield of 6.03 per cent. The recent debacle in the stock market has brought more prominent- ly before the public the controversial question £3 to the wisdom or other- wise of Insurance Companies invest any considerable portion of their sets in Common Stocks, It has been reported by our officers, from their respective spheres, that the in- suring public in Great Britain, the United States of America, and even in our own country, are labouring under the misconception that ALL Canadian Life Insurance Companies invest a very large proportion of their assets in Common Stocks. It there- fore becomes my duty, as well as my desire, to remave, in so far as it is possible, such misconception, Our Company has but 1.44 per cent. of its assets invested in Common Stocks, and no Life Insurance Company in Canada, save one, has, I believe, more than seven per cent, of its assets in- vested in Common Stocks. The policy of our Company since its incorporation in 1847 has been, when investing its funds, to seek in the main to attain ample security of high standard and quulity, and not to be tempted through high rates of in- terest or expectancy of profit into speculative invegtments. This 1 be- lieve is also the policy of most of the great Life Insurance Companies of! the world, founded on generations if | not centuries of experience. » We have resisted the temptation to | invest largely in Common Stocks, be-, \ : cause we believed that that which has happened would happen, and conse~' quently it was not consistent with our duty to our policyholders. We pre- ferred the fixed type of investment such as bonds, preferred stocks and mortgages, suitably chosen in a well balanced list of maturities. This sys- tem brings in a constant stream of payments of principal without resord to the market itself, in addition to interest. Then, too, the most herald- ed advantage of Common Stocks is the prospect of profit' in years to come, but that would mean benefit for the future rather than for the present policyholders. We do not feel that we should fairly postpone possible but uncertain accretions to principal for future beneficiaries, wnd neglect those living, many of whom will then have died or ceased to have an interest in the Company. ' | more particularly with reference to year's business. | : | SURPLUS EARNINGS The Earned Surplus of $6,255,674.98, | exceeding that of last year by ap- | proximately $650,000.00, is the largest net Surplus Earnings your Company has ever recorded. It reflects, not- withstanding the fact that there was |a mild influenza epidemic early in | the yeay and that claims arising from automobile and aviation accidents have alarmingly increased, an en- couraging rate of mortality. indicates a wise selection of lives, and satisfactory earnings from our carefully selected investment securi- ties. Further, it has enabled us to provide adequate appropriations for taking care of any doubtful securi- ties and to increase our Investment Contingent Reserve to $950,406.97, making our total Contingent Reserves $1,450,400.07. 1t has also ensured the continuance of our dividends to policyholders and shareholders upon the present scale, It is most gratify. ing and worthy of emphatic note to find ourselvgs able to do all this while accepting $161,000,000.00 of new as- surances. It can but greatly increase the already strong confidence of the public in our institution, INVESTMENTS The Report shows that our assets now amount to $173,767,668.22, being o gratifying increase of $16,698,183.31 over last year, The investment of this large vol- ume of funds is under the supervision of a thoroughly experienced Com- mittee of the Bap, and is one of Company to maintain a selection and diversification of investments which would meet all the tests to which economic and financial disturbances might subject it, In the course of this Company's long existence, there have been many crises in the finan- cial world, through all of which the Company's wisdom in maintaining a standard of investment based on security of principal and stability of been exemplified to ¥ The year 1920 was marked by a great expansion of security. values, culminating in probably the most vio- lent and acute liquidation in financial history, and it is with most intense gratification I can report to yqu that the Company's investments in real policyholders. even at the low of the year, showed a very substantial surplus of profit over book values, We have continued to add to our holdings of bonds and preferred stocks in the utility and industrial field, where opportunities which com- ply with our strict analytical require- ments are found. It also earning power has by its continuous high dividends paid t Had not the palicy referred §o been conditions, but are sharing in the ag- it, and their contribution to our |that of most of the Life Insurance | Companies of this continent, one { hesitates to express what might have 7 been the result of the recent violent' | 'break in the stock market. i Suffice it to say that no Life In- surance contract has, as a result of ' the disturbance, been varied in any respect, as to dividends or otherwise. It must not, however, be assumed that, because most Life Insurance Companies have weathered the storm unscathed, it was by reason of any financial genius peculiar to their Ex- ecutives, or because they enjoyed any unique advantages of market posi- tion. Had the investments of those Life Insurance Companies been of similar character, they would haver suffered proportionately with those invividuals and corporations who were afflicted. It has been convincingly demcn-=« strated that Life Insurance, by son of the high ideals of its manages ment, aided by statutory limitations, has been so entirely dissociated from thie speculative security market, its caprices and influences, that it was, not endangered, nor should it ever be greatly threatened by this or any like catastrophe. The integrity and absolute relia. bility of Life Insurance contracts should never be subjected to the up- turns or downswings of the market. Any Company which has passed through the recent market upheaval without feeling the pinch, and with- out sharing to any substantial extent in the stupendous losses, must be re- garded as fundamentally stable and sound. Your Company claims $o be one of these. NEW HEAD OFFICE SITE It is my pleasure to report that the architects have completed the plans for our new offices, to be erected at the corner of Queen Street and Uni- versity Avenue. Contracts were let and the necessary excavation work commenced in September last. The work is thus-far progressing satis factorily and rapidly, and it is h that, by this time next year, it will be almost if not quite ready for oc- cupation, Your Directors were, last June, Sir John Gibson, K.CM.G., K.C., who for many years served the Company to its great advantage. His large business connection and experience were of great value to us. During the year Mr. Aime Geof- frion, K.C, of Montreal, was good enough to accept a seat upon the Board, to fill the vacancy created by the death of our late colleague, Mr. Robert Bickerdike. The Honourable Charles Stewart, Minister of the Ine terior and ex- e r of the Province of Alberta, was also good enough to accept a seat, to fill the vacancy created by the death of Sir John Gibson. Each of these gentle men hes already displayed a very In the case of cur invesiments in United States Companies, these pur- been ingr development of Vancouver's terminal and harbour facilities has been sub chases all meet the approval of the keen interest in the success of the | Company, and will, I am sure, be of great value in furthering its progress: