The sun., 1919-09-02
BUSINESS OUTLOOK
IN DOMINION BETTER
Crop Reports Improve, With
the One Big Union Appear
ing to Lose Ground.
COAL SENT TO NORWAY
Steel Makers Above Line Are
Seeking to Enter Foreign
Markets.
Special Correspondence to the cdnddid"

Section Of THE SUN.
TORONTO, Sept. 1.-While labor trou-
bles in the United States seemed TO be
coming to a head during the last week.
there was an improved feeling in Can
ada, and this was reflected in slight
gain in confidence in business and
finance Z. nerally Crop reports from
the west improved as the days passed
and there was further evidence Of the
rejection by labor of the extreme pro-
gramme of the One Big Union. 1t was re-
ported from Winnipeg that o. b. u. Is
definitely defeated in Regina, Saskatoon
and Moose Jaw, and that with. few ex-
ceptions the unions are lining UP behind
the internationals.
The continuance of.the strike in the
Cobalt silver camp Is the chief labor
difficulty at present, and there has been
disappointment that the expected set
Element has not been reached. The mine
managers are willing to recognize a
local union of their own men, but they
are holding out resolutely against any
dealings with the Western Federation of
Miners, which they declare has a long
record of intimidation and terrorism"
Federal and provincial Governments are
being urged to take action to end a
"a month in silver production at time
when silver is badly needed and prices
are high.
Talk Of Canadian steel makers seek
ing foreign market has developed dur
ing the week, as further evidence came
to hand of unfavorable conditions in
England, wnere high wages still handi-
cap the industry.
more significant action, however
was the actual export of coal from Nova
Scotia to Norway market previously
OF special value to England. The first
shipment of 5000 tons has been fol-
lowed by orders for 10000 tons and the
big companies of the Atlantic coast are
looking for interesting developments as
consequence. The Nova Scotia Steel
and Coal Company's coal operations are
now at full capacity.
Outlook for Coal Exports.
Lack of shipping on the st. Lawrence
is losing the Montreal market to the
Nova Scotia mines. but if a market ia
developed in Europe the big coal de-
posits of the Maritime Province may
reach their true position. For the last
couple of years there has been de-
creased output Of coal, but new condi-
tons may overcome that.
Much interest was taken here in the
reported decrease in United States ex-
ports and increase In Imports, and the
bearing this had on international ex-
| change. 1t seemed to be q justification
for the British course of letting the
pound take care of itself Meantime, the
Canadian foreign trade returns for July
were extremely gratifying Exports
! were $4,000, 600, compared with $103,-
| 100000 for the corresponding month last
year, and imports $S4,000,000 as against
| $4,000 900.
Financial reports OF two large COM
panies operating in northern Ontario
give an interesting illumination of con-
| ditions as they are being readjusted In
big industries. About twenty years ago
an American promoter OF great genius
in that direction. Francis II. Clergue,
| had a dream of the unusual possibilities
of industry at Sault Ste. Marie, Ontario,
where an immense water power could be
| harnessed to the wonderful raw mate
| Sials OF that region of Algoma. The re-
suit was the creation of the Lake SUI
perior Corporation. now well known to
| many American investors.
The company has had a slow time in
making profits, and 1t is perhaps true
that 1t was begun on too lavish a scale
and with heavy capitalization. War
brought a lot of BUSINESS to the Algoma
Steel Corporation, its chief subsidiary
| and the annual report for the year ended
June 80 shows some promise OF an i'm
proved position. Net earnings from
operations of the Lake Superior Corpo-
| ration's various subsidiaries excluding
| the Algoma Central Railway, were
! s5,441,574, compared with S6,551,495 the
previous year. The Steel corporation's
net earnings from operations were
| s5,035, 032. compared with $6,001. 1871 In
| 1918. The decrease is obviously the re-
suit of the falling Off in business OF
munition making after the armistice.
Alsoma Steel Pays Dividends.
However, the Steel Corporation, in
addition to paying a back dividend OF
| Z per cent, amounting to 100000, on
preference stock for the year ended June
30. 1915, paid $350.000 on account OF
dividend for the following year. The
Steel Corporation has improved its
| financial position, having current assets
OF S13,S34, S42, compared with $l1,147,-
| 259, while current liabilities are but
| S2.449, 100. compared with s3.059,S26.
The Algoma Central and Hudson Bay
| Railway had net earnings of $263,293
compared with s4Ss.219. while the Al
gonna Eastern Railway. another sub
sidiary, had deficiency of $31,076, COM
pared with a deficiency of $1so.615
| President Wilfred II. Cunningham, in
his report, faces the future with con-
fdence. and announces plans for the
erection of structural mill to consist
OF forty inch blooming mill. thirty-six
inch rougher and three stand twenty
eight inch combination structural and
rail finishing mills. These works. the
directors consider, would secure suffi.
cient business. and they are believed &c
be vital to the continued success of the
steel company.
| A scheme for financing this undertake.
ing will be submitted to stockholders
soon. Meantime the rail mill. which IL
now operating at about half capacity
will be extended to care for such struc.
! tural steel up to fifteen inch beams and
panels as may be marketable
The Spanish River Pulp and Paper
Company, which has been extremely 40
tive on the Toronto and Montreal ex,
| changes of late. has issued the best an.
nual report in its history and gives
promise of becoming a big industry IL
the wilds of eastern Algoma. The com
pany had net surplus of SI456,921 ant
net revenue Of $2.757,s64. Because Of
increasing demands of regular Gus
toners, says President George H Mead
the installation of two additional paper
machines at Espanola, with a capacity
of 100 tons a day, has become necessary
1t Is proposed to pay for these out o.
the proceeds OF the sale of $500, 600 O.
notes and the earnings Of the ensuing
year.
= II is announced that the deferred in
terest on bonds and notes due In 1872:
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