Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-20
BY JAMES MoNTAGNEs.


OANADA has long been Uncle
Sans best customer. During
the last Is years the Dominion
~ has also become the largest
consumer of the surplus funds
Of United States industries and finan-
eial investors. Today the United
States is estimated by the Canadian
government to have investments in the
Dominion upward of $500 600 600, or
upward Of so per cent of the total for
efgn investments in Canada. Uncle
Sam has replaced Great Britain as the
largest investor in the future OF the
Dominion.
Investments in Canada by the United
States are varied to include every de-
velopment in the Dominion. The 3d.
0,O00, 900 amount that Is sunk in
Canada by American interests repre-
sents not only industrial plants and
the sites Of natural resources, such as
pulp and paper reserves, hydro-electrtc
developments and mines. but also gov
eminent, railway and corporation Sc
curities and holdings in a diversity Of
Canadian stocks and bonds.
Industrial branch plants and fac
tories are the outward indications Of
this growth of American investment in
the Dominion. There are, according tot
official United States Department of
Commerce statistics, SEA branch plants
in Canada Of industries operating in
by Canadian industrial experts to be
an underestimation. There are 800
plants in Toronto and vicinity alone,
with another $50 in Montreal. Winni-
peg and Hamilton are also big indus
trial centers where American firms have
placed their branches. Thus the figure
Is higher than 524. The value of these
e. a. In&a EltYf
Department OF Commerce statistics say
that they are valued to the amount Of
$540, 593, 900.
Product Range Wide.
This figure includes all industrial
plants where such commodities as auto
mobiles, electrical goods, rubber articles
featured. The range OF these concerns
is the entire structure of American in
dustry. They include nationally known
goods for everyday consumption by the
public at large and specialties known
only in certain lines of business. The
branch plants vary from small plants
where only assembly work Is now being
done, as Is the case with aircraft
concerns, to those where practically
the entire product Is manufactured in
the Dominion. They range from small
plants taking up but q moor In a rae
tory building to huge factories supplying
q labor demand for an entire commu-
nifty, as is the case with automobile,
electrical and tire Manufacturer. Most
Of them are entirely controlled by
American capital, while others have
Iarre Canadian financial assistance.
Many are operated as direct branches.
with head once control In the United
states, while the majority are subsidiary
companies with their own boards OF di-
rectors. operated as entirely separate
companies.
Industrial plants become more numer-
Gus with each passing year. The flrst
branch plant 70 be erected in Canada
was In 1860 and since that time the
number has increased, at first slowly,
but after 1917 by leaps and bounds. In
1929, as an example, so were established
In Canada and they consisted Of plants
IN every line Of industry.
Many motives have been advanced
as to why American industry should
establish itself in duplicate as it were
Just across the international border.
These reasons differ for each line Of
business. And while the underlying
motives apply largely to industry, In a
measure they also show the reason for
huge investments In natural resources,
development and the buying Of securt-
ties Of all types.
To be able 70 Detter Work the market
In Canada 1s one reason advanced.
Prejudice against foreign goods is over
come by the erection Of q plant in
the country where the sales have TO
be made. The manufacturer Of GER
tain percentages Of the articles in the
Dominion means a reduction in the
customs duty Of parts that have to be
imported. Tariff walls are another rea-
son. Protection for home industries Is
81 4v1 fF4d n
Canada.
Car Industries Benefit.
Yet another important reason is the
tariff preferences enjoyed by manu-
facturers In the Dominion. Canada has
special trade agreements with the other
parts Of the British Empire, which
mean that goods manufactured in