The Waterbury Democrat., 1937-10-13
BRANCH PLANTS FROM U. s. DOT
 CANADIAN MAP
American Capital Is Far Greater Than That
 of British

Ottawa, Ont, october lS. - CUP, -- The penetration of United State Industry in Canada, attributed tI the desire of American manufac' tAlrers to obtain the benefits of thu British Empire tariff preferences as increasing, . survey by the Do 1ninion Bureau of statistica agency, reveals.
 1t is estimated that American manufacturers have established nearly l,600 branch plants il Canada, and the large majority oI the t2,oO0. 100000 invested II plants In the Dominion by foreigr manufacturers Is owned by Amer lean interests. The American capt. tai, invested in Canada, 1t Is res vealed, by far exceeds British cap' 1tal,
 The American penetration IT Canada Is particularly pronounced in Ontario, because the province extends farthest south and Is more contiguous to the large centerS oi American manufacturing.
 Distance FavoPs Americans
 Canadian economists, surveying the situation, find a great difference between the attitude of British and American manufacturers In locating in Canada. The former operates primarily under the disadvantage of long distance, whereas commun- icAtion between American plants and Canadian subsidiaries Is only mat ter of minutes and the shipment oi equipment, when urgently needed is only n matter of hours More- over, the British manufacturer has an enormous home market, in ad- dition to being favorably located for foreign trade In general, and, being in the Empire, has all the fiscal preferences automatically,
 When the American manufacturer attempts to enter the Canadian market, he encounters & tariff wall, and the only way he can overcome this impeachment Is by establishing . branch factory in Canada.
 Canadian Trade Sought
 It Is not for the Canadian trade alone, however, that the American manufacturer Is Increasingly inVest- ing capital in Canada. He Is aiso seeking the preferential advantages of British and Dominion trade agreements. American factories located in Canada are heavy ex- DO ters of various commodities, ranging from automobiles to toilet preparations, which go to Great Britain, Australia, New Zealand and South Africa, They enter those countries under the preteren- tiEl tariffs. which are low in cori- parison with customs duties If ox- porting directly from the United StSteS.
 Customs regulations, however, pro- vide for Q large degree of Canadian content of labor and materials as A qualification. For example, after next March, the Canadian content of motor cars must be 66 per cent or else the great advantage accruing from scores of parts being admitted free will lapse.
 The American branch industry has readily aSSimilated Itself into thu Canadian Industrial structure and. in places, it Is actually a dom inant factor. It has Q large voice in the Canaditn Manufacturers AS- sociation, and, curiouSly, it com monly combats moves to lower the tariff against the United States even if this would benefit the present in- dustry. Free access to tho Cana alan market would modify the ne' cessity of Canadian branch plants even though 1t S only through them that the Empire preferences arc available.
 Some Opposition Manifest
 Tho penetration of Amerieaf industry Into Canada has arouSee oppposition in some sources. Int development Is particularly op' nobed by the Socialists Co-opera' tive Commonwealth Federation party, which holds that the opera ton Of these companies In the DO hinton b 70 real menace to can ada"
 L 8. Woodsworth, leader of th' party, recently accused Prime Mn htAr, Mitchell r. Hepburn, whoS' opposition to John L. LewiS' Com inittee for Industrial Organization is construed in some quarters aS al Invitation for American industries t' locate in the province, Of permit tlhg American companies to organizl ingtho province and operate unae' lower wage scales. ,- i |yNherever there are gold, nicko or coal mines, automobile factories or water powers controlled p' American interests in Canada yol should put up An American llaS aiaN then you would have no room for the British flag" he said slskafad cn guard for Canada ! You want to have British industriel estRblished here"