The sun., 1919-06-10
CANADIAN STEEL
STOCKS ADVANCE
Jumps of 5 to II Points in
Representative Securities
Recorded.
FEELING OF CONFIDENCE
Dominion Steel Corporations
Annual Report Shows Net
of SO, 768,O54.
FEELING OF CONFIDENCE
Special Correspondence TO THx Sux.

and commercial circles at Montreal.
The general strike at Winnipeg con-
tinues at this writing. but the forces Of
law and order steadily are reasserting
themselves and the effort to make the
Soviet movement one TO be seriously
reckoned with Is viewed as a failure.
The extension Of the strike trouble TO
Vancouver has been more than Offset by
the failure to bring about a general
strike In Toronto.
Montreal has remained quiet, although
strikes are in progress at some of the
large plants. Chief OF these Is the strike
Of employees of the Canadian Vickers,
the big shipbuilding company at this
port, some $500 employees being out.
However, these troubles at Montreal are
isolated incidents. the general situation
remaining outwardly calm and peaceful.
Public Behind New Law.
Public opinion is strongly behind the
Government in the new legislation CIV
ing the authorities power to deport UNI
desirables. whether of British or allen
birth.
The annual report Of Dominion Steel
Corporation, issued in the last week.
shows some contraction in earnings as
result of the ending OF war orders. The
corporation closes it's year March 81,
so there was period of more than four
months in which war business did not
enter as a factor into incoming orders.
Net before depreciation. &c, which had
been as high as $12,967.S74 In 1851
and s11.030,113 in 1917-1s. declined to
sS.76S,054. The margn OF profit for
shareholders after provision for all
charges, remained large. however. In
comparison with the prewRr standard.
Against a prewar rate OF about per
cent on the S32,097,000 common stock
the rate IN the last year was II per
cent with the dividend distribution only
"a per cent Total surplus In profit
and loss account was brought UP TO
Sl7,459,251. from which the directors
set aside S9.500.000 to general reserves.
The company is the largest OF Can
ada's industrial concerns, having total
assets of upward of ss5,ooo.000. with
control of the two largest steel and coal
properties in the country. Its early ca
reer was marked by some disappoint-
ment. the bringing together OF the Do
minion Iron and Steel Company and the
Dominion Coal Company in 1911, fall
ing in the first instance to show the eA-
pected benefits from the fusion OF inter-
ests Also the merger started of under
the handicap of insufficient working cap
ital.
The large earnings of the war period
with a conservative policy In dividend
distributions. has completely changed
the outlook OF the company. Bank loans
have been paid off, bonded Indebtedness
reduced and a strong cash position bull
up. At the same time a comprehensive
programme OF plant engagements and
improvements was carried out without
any increase in capital charges. II
1914 the corporation had a net working
capital Of only S3.5o0.000. This has
now risen TO upward of sl4,00O,000. lr
the same period the corporations inter
est charges have been reduced more
than so per cent.
War Brought Prosperity.
In a good many respects the changed
financial position OF the corporation Il
| typical of a condition OF affairs more Of
| less general I'M Canada. The outbreal
of war found many OF the leading com
| panies In a precarious condition. Pro
motions of the optimistic days o
1910 10 1912, when It was all blue SHY Il
| Canada. were characterized by disreEart
| OF the possible effects OF a trade set
! back and tight money market.
| In the autumn of 1914. before war OF
| ders began to flow in from Europe
there were grave fears that drastic re
| organizations would be necessary 1
place many OF these big companies In
healthy position. Then came the unex
pected rush OF war business. and withi
| two years the companies were prosper
| ing as they had never prospered before.
| The undercurrent of confidence in tn
! future Of Industrial Canada, despite tn
| Uncertainties of the adjustment period
| Is due In large part to the feeling tina
/ III LII.
have placed themselves in position o
such financial strength that the oil
threat of bankruptcy and reorganlzatio
is removed for all time. Profits are no
| going TO be maintained at the war leve
| but there Is no anxiety that interes
| charges and a fair dividend for tn
shareholders cannot be earned under an
conditions short OF complete demorali
cation in business
The pulp and paper industry OF Can
! ada continues to expand its plans TO
I capturing larger share of the bushes
Offering within the British Empire. TIL
! industry is now supplying a considerable
| proportion OF the needs Of the America
! market: 1t has a big trade with Aus
tralia and South Africa. Hitherto. how
ever. Scandinavian interests have bee
dominant in the pulp and paper marke
| Of Great Britain itself. Much OF thi
| business should come TO Canada in tn
opinion OF good trade authorities, and a
important move has been taken in tn
I naming Of a special representative OF tn
I industry TO cooperate with the Canada
trade mission in London in securing or
ders for Canadian pulp and paper mills
A distinct revival OF interest in tn
steel stocks was the feature on the Cana
dian stock exchanges In the week jus
oil ThA Ni.Nh hoN
for many months, while heavy buying O
pulp. paper. textile and milling stock
was in progress. responded at last to
number Of favorable influences. Nc
least OF these was the buoyant tone @
/ the steel stocks OF New York. the rise 1
these issues In the big market OF IN
continent being taken to forecast trad
conditions in the United States that coul
not fail TO be of beneht TO the steel In
dustry in the Dominion.
Advances OF five to eleven points I
the representative stocks of the stes
group here also owed something to locs
factors. One OF these was the sold ou
copdition OF the market. The absence c
any extended bull account in the stock
contributed to sharp advances, once
public demand asserted Itself.
Two OF the stocks also we're affecte
by the opening Of negotiations betwee
the Dominion Steel Corporation an
Nova Scotia Steel and Coal Compan
to see II a suitable settlement of tn
disputed question of coal areas in Cap
Breton could not be arrived at. som
OF the heavy buying OF Dominion stet
Corporation shares during the week wa
attributed, for instance. to the New Yor
interests which have become dominan
in the AFFAIRS OF the Nova Scotia Stet
and Coal Company.
So far all efforts 10 bring about