Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-08-22
INSURANCE FIRM
. THR|VES IN CANADA
Sun Co. Is Allowed Great
Freedom in Making It's
investments.
BY JOHN r. SINCLAIR.


Special Dispatch to The Star.
MONTREAL, Canada, August a.
When a man is head of O company with
$500, 000,0 900 to invest, what should he
be allowed to buy?
law is much more liberal than any. in
the United States. All Canadian in
surance companies are allowed by the
Canadian insurance law to invest in
first mortgages (up to so per cent OF
the appraised value), government and
municipal bonds, corporation bonds Sc
cured by mortgage, preferred stock Of
corporations which have paid dividends
for the preceding five. years and COM
mon stocks OF corporations which have
paid dividends for the preceding seven
years, such dividends being not less
than per cent per annum or $500, 900
per annum in amount.
Such provisions avoid the extremes,
both Of unwise freedom and of harm
full restriction, and to my mind they
are almost ideal" says r. B. Macaulay,
president Of the Sun Life Assurance Co.
Of Canada, the largest strictly life in
surance company In the British EN-
pire.
This company Is really an interna-
tional one, for nearly 80 per cent of its
premium income is derived from coun-
tries other than Canada. About half
Of its huge income Is from the United
States.
Among the common stocks which this
company, with assets now exceeding
half q billion dollars, has invested In
are Consolidated Gas of New York, De-
troit Edison, Public Service Of New
Jersey, Commonwealth Edison of Chi
cago. American Telephone & Telegraph
Co, Standard Oil Stocks, General Elec-
trio and United Fruit. -.
1t has millions invested in bank
stocks. For five of them Sun Life
shows q special preference. These are
Canada's big three-the Royal Bank
of Canada. the Bank of Montreal and
the Canadian Bank Of Commerce-and
the National City and the Chase Ma
tional Banks Of New York.
Such policy Of being able to invest
In common stocks Of responsible, con-
scrvatively managed American and
Canadian corporations has rewarded US
handsomely" said Mr.. Macalay to me.
1T may surprise you to know that on
the present market our investments in
these stocks are worth $3.50. 000, 900 more
than we paid for them. So our COM
pany Is naturally in a most healthy
financial condition"
Sun Life, with a board Of directors
almost entirely composed Of Montreal
men, is capitalized at $4,000 900. The
stock pays IS per cent year and is
now being quoted at $4,000 q share.
The reason for the big price is that
some day the government may give the
big split-up Of the stock Is inevitable.
While all of Canada is at present in
the throes of an American invasion,
Montreal seems to be the mecca. Since
the middle Of June the hotels have been
| turning away guests every night. In
recent weeks the number Of tourists
who have headed toward Montreal has
| increased to a point where private
homes are now at premium for Sleep
ing quarters.
On several days during the last two
! weeks hundreds Of motorists have
driven out into country towns to get
| accommodations. after looking around
, vainly in Montreal for hours for room
{ N in a private home. with none avail
able. One night this week the hotels
report having turned away more than
1000 people.
Building Is humming in Montreal al
| present. Many new apartments are
| under construction in all parts Of the
city. But there seems to be q real