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canada packers limited report to shareholders the tenth fiscal year of canada packers limited ended march 25th 1937 profit after depreciation bond interest and in come tax is 152206269 equivalent on 200000 shares to761 per share out of this sum it has been decided to distribute as dividends on the common shares during the current fiscal year 300 per share 60000000 the profit applicable to the common shares is substantially higher than in any previous year shareholders may feel in the circumstances that a larger dividend might have been justified this was in fact consid ered but the decision was against an increase because of the policy of plant expansion to which the company is committed during the year just closed plant extensions were made totalling 106703072 and for the coming year extensions have been authorized totalling approximately 115000000 in view of these heavy expenditures the directors thought it necessary to conserve working capital shareholders may inquire whether so large a programme of plant expansion was necessary the answer lies in the fact that during the nine preceding years ie since the company was formed net plant expendi tures had amounted to only 70712568 during all that time the main object vc had been to build up working capital which had increased from 1927 5i 361791444 to 1930 71245771 last year it was decided to extend operations to the pacific coast and as a first step a plant was built at edmonton alberta this plant cost approximately 100000000 jt is one of the finest industrial plants in canada combining a beau tiful exterior with high operating efficiency plans for the coming year include a new plant at vancouver bc also extensions and new equipment at several of the existing plants when this programme is completed directors look forward to another period of rest in respect to plant extension total sales for the year were 72g99 51948 total tonnage 774270797 lbs the net profit 1522gg2g9 is therefore equi valent to 210 of sales or to l5c per lb of product sold the above figures relate to total operations including products other erian those derived from live stock on products derived frori live stock profit is equivalent to 168c per 100 lb ie l6c per lb sales increased from g35s6s833g year ended march 1936 to 7269951948 year ended march 1937 that is tonnage increased from to 911263612 or 143 659706572 lbs 774270797 that is 114564224 lbs or 174 these large increases are due partly to new business deriving from the edmonton plant also to increased exports of bacon but all plants enjoyed an increased domestic volume reflecting the improved economic conditions in canada that improvement st far as agriculture is concerned is indicated in the following table of prices of farm products farm products average price month march years 19301937 1930 1931 1932 1933 1934 1935 1936 1937 s 66 525 847 s 81 v s s2vi s110 490 632 743 711 815 816 892 1008 08 09k 134 17 olg 07 a 051 06 31 21 35 45 wheal no 1 northern tort arthur sl061 5 50x s 03 49 cattle kocd steers 1050 lbs down toronto 1020 010 513 121 hogs bacons fob ontario points 1275 719 440 461 lambs good handyweights toronto llsg 921 730 612 hides native packer steers toronto 134 09 06 035 tallow edible toronto 0731 05 0351 03 wool lamb n toronto 29 17- 15 15 over wide areas canadian farmers are still suffering from a succes sion of crop failures but in every other respect canadian agriculture has emerged from the depression the low point of the depression fell in the first quarter of 1933 ie just more than fourjears ago it is difficult now even to recall how bleak the outlook seemed at that time not only were prices of farm products at or near alltime lows but there were heavy sur pluses for which there seemed to be no external outlet at any price that was particularly the case in respect of wheat and of cattle all this is now changed the surplus wheat has gone at the end of the present crop year the carryover will be less than in any year since 1926 and the price of wheat at prairie points is more than three times that of february 1933 this disappearance of the overhanging surplus and the rapid advance in the price and with it in prices of other grains was the signal which to the farmer marked the final passing of the depression but this very event brought with it a complication in the live stock field particularly that of hogs hogs are produced from grains the costofproduction of the hog is in direct ratio to the price of the grains between march 193c and march 1937 the price of wheat advanced from 82c to 140 per bushel and other grains in similar ratio but the price of hogs advanced not at all this disparity in movement as between grain and hog prices present ed a problem to the farmer which he had not had to consider for six years would he feed hogs or would be sell his grain the question became acute just at the beginning of the major breeding season ie september in that month grains began a spectacular advance and hogs declined the following table sets forth these prices wheat and hogs monthly averages since march 1936 march 1936 april may june july august september october november december january 1937 february march wheat per bushel 82 80 i 701 79 i 92 102 a 103 110 108 a 1201 124 127 140 bacon hogs fob ontario country points per 100 lbs 815 802 781 852 871 889 813 766 724 786 818 793 816 under such conditions it takes some courage on the farmers part to breed sows the progeny of which will be marketed from 10 to 12 months later unless he has the necessary feed actually in his granary many farmers perhaps most are not so situated hence there developed a good deal of hesitation and since september there has certainly been some diminution in breedings as to the extent of this diminution no sta tistic are to be had and the scale of it will not bo known until the progeny arrive at the markets july 1937 forward on each farm the decision whether to breed or not to breed is an important one it determines in advance that portion of farm operations for almost a year the litter is farrowed four months after breeding and the pigs arc marketed six to nine months after birth the farmer who breeds thereby elects to market his grain through the medium of pigs on the other hand the decision not to breed is equivalent to that of selling the grain for cash but the important factor to consider is clearly not the relative price of grain and pigs at the time the sow is bred it is the average price of grain for a period of 4 to 1011 months forward in rela tion to the pricv of hogs on the marketing day unknown 1011 months away if therefore the farmer seeks at breeding time to determine whether the sows should or should not be bred he is faced with factors which are not known and cannot be known but a study of the past comes to his aid and enables him to base his decision on other and knowable factors if a priod of years is considered it is found that providing feeding methods are efficient there is an as sured profit in continuously raising hogs this is not conjecture but his tory a farmer cannot know in the case of any particular litter whether tho pigs will sell for a greater sum than the value of the grain required to produce them nevertheless lie can be certain that if he feeds hogs all tho time he will make a profit and a good profit as against selling his grain on the other hand it is equally a matter of history that the in- andout feeder generally gets in before a decline and out before an advance in discussions as to the profit or loss of producing hogs there is sometimes confusion on a most important point during tho last three years hog prices have been high and stable the low monthly average price for bacons fob- ontario country points has been 714 per 103 lbs the yearly averages have been as follows 1936 zrzrirzzzzrzz- sio the fundamental fact is that at such prices there is a sure profit in growing feeds and converting those feeds into hogs it may appear that for a certain period prices ot grains may be high and during that period that grains would sell for more than the pigs which those grains would produce in such ease the farmer if he feeds would make less profit- but he would not make a loss the feeder who does not grow his grain but buys it on the market would make a loss for him the lluctuatiors of the grain market are a serious matter but the farmer who grows the feeds may continue producing hogs in the assurance that during the life of the ot tawa agreement hog production is the safest activity on te canadian farm to the farmer therefore who can count on the necessary feed ths conviction makes the problem a simple one he need not even stop to consider whether he will or will not breed but for the farmer whose crops have failed year after year it is a quite different matter without the grain he cannot feed the wide areas of crop failure of the last seven years have appreciably retarded increase in hog production crop failures have in fact been the chief reason why canada has not yet reached the quota for bacon allotted in the ottawa agreement of 1932 that quota was the equivalent of 2500000 hogs per year since 1932 there has been every incentive to increase hog production prices have been high and the grainhog ratio favourable and in spite of crop failures production has greatly increased this is evident from the following table of hog marketings and bacon experts ln the above discussion no mention is made of the other costs which enter into hog production including labour and plant overhead- these items are constants and therefore eo not afteci the argument which has to do with fluctuating grain prices hog marketings month 1935 193g inc january 297325 275553 73 february 203005 257301 22 march 229822 312695 361 april 312719 267201 146 may 228556 275376 205 june 204540 310686 519 july 225586 226147 23 august 173369 235708 360 september 192103 323146 082 october 287855 375081 303 november 252800 415141 642 december 301631 471463 563 1937 320007 315690 397213 337236 inc 163 340 270 262 total 2969311 3745498 261 bacon exports in terms of hogs january 113378 100473 february 123043 9208s march 113096 109651 april 69549 77547 may 103445 120642 june 92420 99207 july 87991 108776 august 68791 96128 september 51973 92014 october 54328 115818 november 95936 130495 december 62107 146902 134864 152965 138146 138192 739 395 500 375 245 total 1036057 1289741 these figures give ground for thinking that if feed had been plentiful last fall and the hogl grain ratio favourable canada would now be well on the way towards filling her bacon quota in great britain this question as to whether and how soon canada will achieve her bacon quota is the most important one in canadian agriculture as to whether canada will fill her quota there should be only one answer for canada is naturally a hog producing country and this quota gives her the opportunity on the most favourable terms of establishing herself in the greatest bacon market of the world the opportunity lies in the fact that the agreement permits her rapidly to increase shipments and at the same time assures her a stable price such a situation never obtained before and is inconceivable except under a quota plan at any previous time so rapid an increase in shpments would have brought about a drastic fall in price but no fall ha3 occurred for the british plan is to keep the total quantity of bacon approximately constant as canadian shipments increased imports from other countries were cor respondingly cut down canadas policy should clearly be to establish herself firmly while these conditions last that canadian farmers have a grasp of the value of the bacon quota is shown by their efforts to increase hog production but there is an element in the situation to which they are likely to give less thought than its importance merits viz that time is of the essence of the situation canada is assured another three years of the quota within that time it is most important a that she take maximum advantage of the opportunity by filling the quota that she keep in mind constantly the time will certainly come again when canadian bacon will have to compete without pre ference with bacon from denmark and other european coun tries what will canadas position then be will canadian bacon be able to hoid its place in such a situation the answer hinges on a point which has received too little attention it will depend upon efficiency in breeding and canadian feeding methods relatively to those of denmark and other european countries how do the efficiencies now compare the answer brings us hack to the fact that hogs are produced from grain or its equivalent exact statistics are not available but the best informed view is that in denmark on average 3 lbs of grain produce 1 lb of pig whereas in canada on average 5 lbs of grain are consumed in producing 1 lb of pig in other words that the cost of production in canada as compared to denmark is as 5 3 ie as 2015 ie as 4 3 this means that providing the price of grain is the same it costs onethird more to produce bacon hogs in canada than in denmark applied to the actual data of production the significance of the above facts is as follows canada will produce this year approximately they will be marketed at an average weight of approximately- on the basis 51 each hog would take to produce on the basis 39il each hog would take to produce b 7000000 hogs 200 lbs 1000 lbs of gra 750 to maintain her agriculture on a sound basis canada must produce many more hogs tlian she herself can consume the great market for the surplus bacon of the world is great britain in this market canada at present enjoys a preferred position of the great est importance- for the timttbeing the price of bacon in great britain and the cor responding price of hogs in canada is such that even on a basis of pro duction 51 there is a large profit in producing hogs but the high price of bacon in great britain is maintained only by a government plan of restricting imports under this plan canada is al lotted the large quota of 24 million hogs canada is increasing production at a rate winch with favourable crop conditions will enable her to fill her quota within two or three years per haps earlier canadas volume of shpments to great britain will tnen be almost on a par vith these of denmark this will afford an opportunity by im proving canalian product and service to popularize canadian bacon to an extent rever kefoie possible this can ke done only by making canadian bacon equal in quality to dansh for this the first requisite is to mjce canadian hogs as good as danish a substantial improvement has been made in canadian hogs in the last 15 years- the best canadians are still not so good as the best banish but nevertheless they are very good canadas immediate problem is to bring all her hogs up to the standard of her best but canadas chief remaining problem is daring this protected period to prepare herself for the time when she will again have to meet denmark without preference on the british market for this the inexorable requirement is to achieve an efficiency in hog production eoval to that of denmark if canada does achieve such an fficiency she will then have an ad vantage over denmark for feeds can be produced in canada more cheaply than they can be bought in denmark the achieving of this standard of feeding efficiency s the most im portant single objective canadian agriculture on it depends whether canada will advance to first place in the british market or will at some future date be driven from that market as has more than once occurred in the part return of the hairerush cattle the record in the cattle industry is much more cheerful than in any year since 1930 the pressure on the cattle market from the year 1930 forward was the difficulty of finding a market for canadas surpius that surplus is roughly 200000 cattle per year exports live cattle for the last 10 vears have been 1927 212599 1932 25578 1928 166874 1933 56003 1929 160103 1934 60193 1930 24883 1935 109638 1931 36308 1936 197901 the recent relef has come through shipments to united states under the canadianlamerican trade agreement a- number of cattle up to 155000 may be shipped into united states at a duty of 2c per lb this concession was seaired from the united states administration only after prolonged negotiations- it was strenuously opposed by american cattle producers it is supposed that negotiations are at present under way between canada great britain and the united state looking towards an expan sion of trade between these three countries to secure such an expansion concessions will be asked for and given by each of the negotiating coun tries canada undoubtedly will be asked to give certain advantages to united states in return she will expect to receive other advantages one concession canada should firmly stand for is in connection with cattle if the united states insists on a quota as they probably will she should seek to enlarge that quota from f55000 to 200009 cattle per year this number united states can certainly concede as it is only about 1 of the total number of cattle marketed in united states each year but more important still is the rate of duty if unted strtes is to admt any stated number of cattle it makes no difference to the american producer whether those cattle pay a 2c duty or no duty at all this is the great modification that needs making in the canadianlamerican agreement if canadian cattle up to the quota number were admitted to unted states without duty this concession would automatcally add 2c par lb ap proximately 2000 per head to the value of all the cattle in canada- and the concession would cost united states nothing in this report to shareholders the directors again wish to pay tribute to loyal and efficient work of all ranks of employees durng the year there have been two increases in plant wages these are now on a basis sub stantially higher than the rates of 1929 to an appreciable extent these advanced wages have been offset by higher efficiency brought about by co operation of employees the quality of products is better than at any previous time in the companys history this is due to the pride of work manship on the part of plant employees fortified by cooperation of all other ranks j s mclean president toronto 1st june 1937 etra copic- of this report are available and so long as they last will be mailed to anyone requesting them address to canada packers limited toronto toronto saturday night we view with some gratification the signs of dissension in the ranks of child psychology we are not in sensitive to children we like child ren and dogs and old steel engravings but we have felt of recent years that the importance of the child has been emphasized beyond all reason able exaggeration the child qua child has always appealed to us as having possibilities of charm and in terest but we admit to a sensation of oppression when compelled to con sort with the littlc-man-or-woman- inthcmaking whom the modem theories of emancipation have bred for us all the romp and pleasuro is taken out of conversation which is reduced to the level of a pedagogical passageatarms and it appears that even tho child psychologists aro beginning to feci the strain speaking in new york dr bern ard sachs director of the child neurology research expressed tho conviction that vast numbers of children are born normal and would remain normal if it were not for teachers misled by certain false doc trines that have gained a vogue under these theories a little excess of motherly love is called mother fixation the use of repression and discipline is termed ignorance and sex education is horribly overdone there is a note of weariness in this statement of disavowal echoed in similar statements by other author ities that seems to indicate a yearn ing for the oldfashioned simplifica tion of the hair brush the child is a problem only when it is treated as a problem there is a starting point for a new school of child psychology founded on such revolu tionary precepts as children should be seen and not heard and spare the rod and spoil the child 125 years of tuberculosis the extra cost of producing hogs in canada expressed in grain is 239 an average price of grain at the farm may be takenat 1 4c per lb in other words the extra costofproduction per hog due to feeding inefficiency in canada relatively to denmark is llc x 250 ic 310 per hog on 7000000 hogs 21700000 if the relative feeding ratios are correct there can be no doubt about this figure and the statement of ratios is based on tho best available in formation in each country but to canadian hog producers the figures have still greater signific ance many canadian farmers both east and west actually produce hogs at a ratio 3v1 there is no doubt about this the statement is based on carefully kept records remembering that canadian average production is 51 it follows that on many farms thousands them the basis of producton can not be better than 61 what then is the difference between the high and low cost within canada on the basis of 61 the quantity of grain required to produce a 200 lb hog is 1200 lbs on tho basis 341 tho quantity is 700 therefore the difference between high and low pro duction is per hog 500 at ivic per lb 625 per hog do these 61 farmers realize that a saving is to be made from im proved feeding methods equivalent to more than 3c per lb the argument of the preceding paragraphs may bo summarized as follows the bacon hog is the farm animal which canada is best endowed by nature to produce the most suitable feeds can be grown here perhaps more cheaply than in any other country lesson i july 4 god hears a peoples cry exodus 1 122 2 2325 printed text exodus 1 614 2 2325 golden text before they call i will answer and while they are yet speaking i will hear isaiah 65 24 the lesson in its setting place the children of israel lived for the most part during their residence in egypt in the land of goshen located in tho eastern part of egypt north of the southern point if the nile delta time bc 1643 bc 1578 and joseph ded and all his brethren and all that generation oseph was the one through whose prestige in egypt the hebrew people verc allowed so many favors strang ers as they were in the land of egypt with the passing of any great statesman or captain of industry or military commander there comes sooner or later necessarily a change in the circumstances organization and leadership over which tho de ceased once so completely dominat ed it is perfectly natural that the statement of tho death of all those of josephs generation should be fol lowed by a record of a radical change in tho conditions pertaining to jos ephs people and the children of israel were fruitful and increased abundantly and multiplied and waxed exceed ingly mighty and the land was filled with them in this verse the writer employs the very expressions were fruitful increased abundantly which aro found in gen 1 22 28 nnd 8 17 tins points to a strictly extraordinary or miraculous rapidity in tho rate of increase though of course miraclo has its limits of pos sibility in accelerating the rate of increaso through birth tho follow ing aro natuially favoring circum stances for such a rapid multiplica tion tho proverbial fruitfulncss of women- in egypt tho peculiar full ness of vitality in the israolitish race which still continues a pros perous settlement in a good land in fitted abundant circumstances physical life now there arose a new king over egypt who knew not joseph the hebrew word arose is almost always used to describe a now commence ment as in deut 34 10 the word new occurs in connection with an entire change as in deut 32 17 judges 5 8 while the expression knew not deut 28 36 is applied not so much to absolute want of knowledge as to tho absence of friendly acquaintanceship and he said unto his people be hold the people of the children of israel are more and mightier than we come let us deal wisely with them lest they multiply and it come to pass that when there fallcth out iny war they also join themselves onto our enemies and fight against us and get them up out of the land there was absolutely no justifica tion for such a suspicious attitude toward the hebrew people for in the first place they have never been known as a warlike nation and in the second place they wore so fav orably situated in egypt that thoro would have been no reason for their rising up to unite with egypts ene mies moreover the hebrew people had no alliances with the nations around egypt and were of all peo ple in the world the most independ ent ie a people who were bound more by their miraculous outcalling by god than they were by any blood tics with other peoples- therefore they did set over them taskmasters literally these were captains of laborgangs tho word mas being the technical term for a body of men employed on forced la bor as in i kings 5 13 14 etc to afflict them with their burdens the word here translated afflict means to bend to wear out any ones strength and is the word used in tho prophecy in gm 15 13 that this would be the actual experience of israel in egypt hundreds of years after tho prophecy was uttered the oldest set of continuous tuber culosis statistics in the world is shown by the new york tuberculosis and health association the records go back to 1812 and are based on statistics of new york philadelphia and boston in the 125 years of the study pul monary tuberculosis has taken 700- 000 lives in the three cities most noticeable in tho graph of thj study is the sharp break which began about 1882 when dr robert koch in ger many first identified tho tubercle bacillus before kochs discovery the death rate fluctuated between 300 and 400 for each 100000 of population as soon as medical science learned what it was fighting the story changed isnt the farmer who works in tho fresh air of tho country less likely to have tuberculosis than the city of fice worker who spends his days hunched over a desk in a stuffy office no he isnt the instance of infection is identical for tho two groups offers an outlet there ought to be a great increase in the export of canadian fruit and vegetables to the british isles if tho right cooperation could be achieved for apparently this country has many food products that would improve tho health of old country residents miss zoo puxley senior officer division of public assistance british ministry of health has been in can ada gathering information of likely utility in her work she is impressed by the splendid supply of fruit and vegetables evident in this country she also had quite a lot of enlight enment as to tho percentage of such products that goes into the food ser ved in canada tho prevalence of green vegetables salads and fruits in the canadian menu was impressive to the british visitor who said that people in the british isles seemed to be addicted to meat and pudding so that there was little appetite for the lighter vegetarian foods duke of kent urges developing timber london the vital importance of conserving and developing tho british commonwealths timber re sources was stressed by the duke of kent in presiding at the annual meet ing of the empire forestry associa tion it is very gratifying to know that interempirc soft wood trade showed marked signs of progress nnd that canada instead of occupying tho seventh place among nations supply ing forest products to tho united kingdom is now third and that her trade with other parts of the empire has grown in equally encouraging manner tho duke said tho value of tho forest resources of the empire is vast but one is prompted to inquire whether theso resources arc being as wisely ex ploited as possible each part of tho empire should take stock of its posi tion and boldly plan such measures as are required to enable it to live within its forest income and develop to the utmost its forest resources x