Zurich Herald, 1949-01-27, Page 7Annual. Meeting f Shareholders
Sydney G. Dobson, President, declares private enterprise the very basis of Canada's progress
and freedom—Right to take risks and reap rewards the major motivating force in country's
development—"Socialism and communism are not systems of freedom, but of rationed de-
mocracy, in which liberty is doled out like social security benefits."
James Muir, Vice -President and General Manager, reports new high records in field of
Canadian Banking—Royal Bank assets exceed $2,222,000,000—Deposits reach new Canadian
record of $2,067,488,000—Profits moderately higher—$4,000,000 added to Reserve Fund.
The threat to personal freedom
inherent in the. Socialist and Com-
munist philosophies, and the high
promise of Canada's future were
stressed at the Annual Meetutg of
the Shareholders of; The Royal
Bank of Canada. "On the evidence
.before the world today, capitalist,
works" said Sydney G. Dobson,
President. "It works so well that
the lowest paid workers in these
North American democracies are
better fed, better housed, and better
supplied with the comforts of life
than are the great mass of the
population of collectivist countries.
And they enjoy freedom.'
"Our successful development of
natural- resources confirms our be-
lief in private enterprise as the best
motivating force in an economic
system. All the natural resources
imaginable are as less until they are
brought out were they • can be
turned into serviceable goods, and
the primary seeker, the most suc-
cessful finder, and the greatest
manufacturer nas been private
enterprise.
"Under this system people ,hink
hard and work hard because there
are reasonable rewards. The need
of incentives is recognized in every
country where hien are free to
choose whether they shall work or
not work, and how hard they shall
work.
"In all collectivist economies—
Communistic or Socialistic — the
idea prevails that dictators or bur-
eaucrats can arrange the lives of
people better than people can do it
for themselves Capitalism, on the
other hand, believes that individuals
should be free to express their abil-
ities and thereby bring about a bet-
ter standard of living and a better
social order.
"Our system hinges on initiative,
the courage to invest capital, the
right to take a reasonable profit
from such enterprises as are suc-
cessful and the obligation to stand
such losses as may be incurred in
enterprises which fail.
THREAT TO FREEDOM
"Socialism and Communism do
not seek to make the best of
people's minds and enterprise. On
the contrary, their process is to
level all people by dragging •down
those who might have superior at-
tainments. They need a strong cen-
tralized government with ponti of
over all sections" of the economy.
They are not systems of freedom,
but of rationed democracy, in which
liberty is doled out like social secur-
ity benefits. Incentives are lost, and
individual initiative is smothered.
Standards of work and product 'a-
main unimproved because jobs are
assured without regard for effi-
ciency or performance. The ambi-
tion of men declines to doing just as
mac'• as has to be done and no
more. Progress is sacrificed to a
worship of aveyrages—and they are
averages somehcw arrived at so as
to be well within the reach of the
least progressive. Promotion on
merit is abandoned in favour of pro-
motion in turn. Skilled workers re-
ceive very little more than unskilled
workers. It is only natural that such
a state of affairs should drive the
best brains out of a country.
"I believe in equality, so long as
it is equality of opportunity in edu-
cation, careers and public life.
Socialism is a force which holds
back, while enterprise is a force
which propels us forward, and gives
then and women a chance to display
their talen' and their worth."
FOREIGN TRADE
While Canada's export figures
had shown satisfactory gains during
the past few months, Mr. Dobson
warned that, "there is nothing in
our foreign trade picture today
about which we can afford to be
complacent,
"Our present peals of business
is being maintained to a large extent
by artificial respiration in the form
of credits from Canada and the
United States. To realize our posi-
tion we need only imagine what
would be the state of our commerce
—and therefore of our standard of
living—if the Economic Recovery
Programme and our own loans to
',Europe were suddenly cut off.
"It is true that we can examine
our rising export business of the
past few months with certain satis-
faction, Last October saw us strike
a new high record in domestic ex-
ports. both in total and in shipments
tt the United States. Our total in
the first 11 months of 1948 was $250
million higher than in the corres-
ponding period of 1947."
Turning to domestic affairs, Mr.
Dobson noted that while the pres-
sure of demand has tended to push
prices steadily higher, there has
been a levelling off in the rate of
increase.
PRICES
"It is with regard to prices," he
said, "that the manufacturer and the
business pian have their greatest
worries. No matter how they bal-
ance increased labour costs with
technical advance, and other in-
creased costs with prevention of
waste, they are driven, in. spite of
all their ingenuity, to raise prices
t- their customers.
"It seems to me that those who
work for wages are ill-advised when
they rush into demands which are
planned to give then an immediate
a vantage through increased wages,
while losing sight of the fact that
there is an important long-term as-
pect to be considered. How much
money a worker makes is far less
significant than how much he can
buy, and if he is to buy anything
at all his employer must be able to
Stay in competition with manufac-
turers in the rest of the world."
ELECTRIC POWER
The importance of Canada's hy-
dro-elecric power development to
the national economy was empha-
sized by Mr. Dobson. Wide distri-
bution of power and its healthy
d-velopment has been, he said, vital
factors in promoting Canada's in-
dustrial progress and maintaining a
high standard of living. "Each in-
stalled hydraulic horse -power, if
operated continuously throughout
tl e year, would be the equivalent of
the power obtained from 4 tons
of coal. On this basis, the present
hydraulic installation in Canada
might,be said to represent the an-
nual use of about 44 million tons of
coal.
"There are still large reserves
available for development. A gov-
ernment tabulation shows 40 million
horse -power available, and it little
less than eleven million developed
by turbine installation."
Discovery of additional oil in At-
berta and Saskatchewan was a
favorable development to which Mr.
Dobson Made special reference. "It
has become evident," said Mr. Dob-
son, "that Western Canada, and
particularly Alberta, has become
one of the brightest prospects for
our future supply. It is forecast that
by 1950 the oil requirements of our
Prairies will be satisfiedout of
hone production and there may 'se
a surplus available for other mar-
kets. This is important because
every barrel of oil produced and
consumed in Canada conserves from
three to five dollars of United
States dollar exchange."
CONCLUSION
"I believe that more attention
needs to be paid to the education of
our people in the responsibilities as
welt as the advantages of democra-
tic citizenship. Too much stress is
being placed, these days, on humsm
rights and not enough on human
obligations. If it is reasonable for a
man to expect to be taken care of
when disaster threatens or strikes
hint, he should be educated to know
that he needs to contribute his share
to the welfare of the nation. T
deplore the increasing trend among
a portion of the younger generation
today to think too much of security
and not enough about going out
and really accomplishing something
for themselves.
"We live in a world where we
should not expect to receive some-
thing for nothing. This is an old,
Old law recognized in economics,
and no discovery by any political
party or reform faction has ever
found a permanent substitute. Queer
creeds based on ease and leisure
may rise a..d flourish 'for a time,
but they always run into difficulty
.hick can be overeome only by
work."
GENERAL MANAGER'S
ADDRESS
Mr. James Muir, Vice -President
and General Manager, reviewed the
bank's 1948 Annual Report and
noted that new high water marks in
the bank's progress had been es-
tablished during 1948. Assets had
topped $2,222,000,000, a point never
before reached. The bank's liquid
assets equalled 74% of all liabilities
to the public. Commercial loans in
Canada had also increased denoting
"an expansion of connections and
clients as well as the fulfilment of
the additional needs of old custom-
ers." Mr. Muir also noted a further
substantial increase in the number
of depositing clients and total de-
posits of $2,067,488,000, an increase
of $133,303,000 over the previous
year, and a new high water mark
ri the history of the bank. Earn-
ings had been moderately higher,
and in addition to providing for the
customers deductions including
taxes of $3,150,000 and increased
dividends for Shareholders, lad en-
abled the bank to transfer $4,000,-
000 to the Reserve Fund which now
totalled $44,0000,000. This left a carry
forward in Profit and Loss Ac-
count of $1,532,000.
AID TO TRADE
The important role played by the
Royal Bank's extensive system .of
foreign branches in furthering Can-
ada's trade was stressed by Mr.
Muir. "We have had a half -cen-
tury's experience .in this regard,"
he said. "Cur oldest 'branch outside
of Canada and Newfoundland, and
still in operation, is that in IIavana,
Cuba, opened fifty years ago this
spring. Apart from those in New-
foundland, we have at present 62
branches outside Canada, and, m
addition to this direct representation
which covers New York, London,
Paris and most South American
countries as well as the Caribbean
area, we have unusually extensive
correspondent relations with banks
throughout the world. Your bank
is in a preferred, if not unique posi-
tion to facilitate, as it has for many
years facilitated, Canada's foreign
trade activites.
NEED FOR ENTERPRISE.
"Whatever the outlook for Cana-
dian business it, the short run, our
long -run position should be secure.
For our economic fortunes as a
nation depend, not on disturbing
short run ups and downs, but on
our tremendous wealth in natural
resources. Of course, natural re-
sources are of little use unless they
are developed. And I agr:e 1 eartily,
therefore, with what the President
has just said about the need for
ambition and enterprise.
"We Canadians might appraise
ourselves and our possibilities a
little higher than we are inclined
to do. No country on earth has a
future that promises to surpass or
even to equal ours. Whenever we
forget that fact, some Canadian
voice must speak out, reminding as
both of the greatness of our resuuc-
ces and the responsibility that rests
upon u, to take a mature and an
ardent view of Canada's capacity
for economic development. Then,
surely, a breed of courageous, clear-
sighted and Canada -conscious men
will arise who will become acutely
seized of the fact that we are in
duty bound to develop these re-
sources and endowments and deal
with them in our day for the great-
er good of generations of Canadians
yet to conte.
PRAISE FOR STAFF
'It is no secret that public opinion
of the bank is formed by and large
through dealings with the staff, and
so the Royal Bank's prestige is
largely dependent on personnel—
for it is through then that the
bank is known to the world for
what it is—good, bad, or indifferent.
In all modesty, I feel I can proper-
ly say that the bank in held in the
highest esteem, not only in Canada
but in the many countries where we
have branches.
"We have a large organization,
10,567 men and women, and if there
is sometimes a tendency for mem-
bers of the staff to feel that they
are but very small cogs in a vast
machine, I ask them to dismiss the
t' ought, for es er single job in the
bank is important—every single
job must be we done. That our
staff, both men and women, are
discharging these important duties
with untiring efficiency and in good
spirit is properly exemplified in the
fact that the success embodied in
this year's Annual Report is in no
small measure due to their efforts.
The Executive are fully aware of
this—and acknowledge it gratefully.
"We have reason to be proud of
our staff, and on their behalf I can
tell the shareholders, the public, and
our clients that they can all rely on
the knowledge that the members of
the staff will endeavour to continue
t serve them well—with efficiency
—with accuracy -and with friend-
liness."
"Sorry, sir, but there's no tele
vision its the operating Wont,"
Silly Solomon!
'.I.`lte prim, bespectacled Sunday
school teacher brought her young
class to order.
"Now, you have just heard me
tell you the story of wise Icing So-
lomon," she said. "And of the ttr,,
woman who both claimed the baby,
and how King Solomon ordered.
the baby cut in tiro, and half given;
to each supposed mother: where-'
upon one of the women cried to the!
king to give the child to the oths ;
woman, thus proving that site hers
self was the real mother." Th.,
teacher paused and ghrneA ar,n n,'
her class.
"Now, I am going to ask ails t�f
you in the class what you woult
I railed In War, Now a Promising Sculptor
Arthur Schneider was blinded by a bullet during the war. One
night, to while away, the time, he picked up a piece of plastellin,
and by morning the blind veteran had fashioned a crude elephant
—also a hobby that has since developed into a career. Now, at
35, he's recognized as one of the most promising of sculptors.
Above he shows some of the remarkably lifelike animals he has
created, while below he woz'1cs on a bronze bust of his little son.
Contacts
by Night
By Art Taylor
"Again tonight?" asked Kitty,
s trying to be light and casual and
succeeding only in sounding strained
and accusing.
"'Fraid I must," said Brace. He
also tried to be casual but he
sounded weary. And looked weary;
too tightly drawn. Some burden of
the spirit was beginning to break
through his outer defenses. "I
have to make contacts, you know,
h , and—"
"I know."
have done if you had been in King
Solomon's place, Alright, Willie."
But to her horror and constern-
ation William, in all the bright in-
nocence of seven years, spoke up
thus: "I would have said: 'Why
must you ladies quarrel over a stere
baby?—there's plenty more where
tl.is ono came front'."
Which?
A track supervisor t•iiceivcd tits
fallowing memo front his foreman:
I':11 sending in a"cirlent report '
,'lout Casey's foot, which he struck
with spike mull. Now, under 'Re --
marks," do you want mine r,•
Casey's?"
Indeed, she did know it. She had
listened to it a: regular intervals for
the past sin weeks.' It had sounded
plausible at first, but contacts that
had to be made every night for ix
weeks seemed slightly incredible.
race didn't argue. He just said,
"Sorry, hon. I'm hoping it won't
last much longer. I know it's tough
on you, sitting here by yourself
night after night."
"Think nothing of it," Kitty said
brightly. "I adore being a business
widow."
Brace moved over to where she
sat, trying to decide whether he
should tell her now or let the thing
drift, He knew it couldn't go on like
this much longer, but again he tem-
porized and remained silent, merely
squeezing her arm.
But tonight, Kitty was definitely
off the beans and there was no re-
sponse to the private signal. Prob-
ably Brace had expected none be-
cause he picked up his hat and left
without another word. Kitty knew
Brace was deceiving her but she
didn't know why or how.
From then on, life for Kitty be-
came conjecture; trust, distrust and
despair.
Maybe it was the war. It did
strange things to men, everyone
said. But Brace was the same old
Brace when he came back, The
first six months were practically
idyllic and Brace and Bill had been
so enthusiastic about this new busi-
ness they had hatched out in spare
moments out its the Pacific. And
then the flood of strikes had inun-
dated the country and swamped
some businesses and washed others
into stagnant backwaters. That was
hen Brace became worried and
restless and began stepping out.
Each night it was harder to take.
This night, she knew, was going to
be very bad. The phone rang. That
booming voice on the other end
could belong to only one person.
'Uncle Edwardi" she squealed in de
light, "W`her'e are you?"
"At the leading hostelry. 1 just
had"to tonne see if you'were still in
e::istence. I'll give you and the boy
friend just fifteen minutes to don
the glad rags and we'll paint this
burg a nice vermillion."
Kitty said,." The boy friend is out,
bu give Inc ten minutes and I'll
help you give it a double coat.'
She took him to the Chateau in the
Pines. It was new and swanky and
thirty miles way. It was too ex-
pensive for Brace and Bill so there
was no danger of running into them.
She was too proud to try to follow
them, whatever they were up to.
And then she saw Brace and Bill.
Very handsome and immaculate
they were in their tails, too. The
captain beckoned to Brace. Bill
tried to step in front of hien and
take the call but Brace pulled him
bank, and with steady pace ap-
proached the table.
* e: *
Kitty's heart turned over. Why
the two crazy youngsters. Work-
s night and day to keep their pre -
1 us business from going on the
rocks and too proud to let her
know how they were doing it.
Without a sign of recognition,
Brace spread the ornate menus in
front of thein. "The caviar is un-
usually good to -night, sir," he said;
"also the baked pheasant"
"How about it, Kitten?" boomed
Uncle Edward,
"It doesn't make a bit of differ-
ence, Uncle Edward," caroled
Kitty. "If this handsome young
waiter should bring ine fricassed
sawdust, it would taste like am-
rosia and nectar."
And slipping her hand up under
the napkin draped so properly over
the handsome young waiter's arm,
she squeezed the arm—hard.
ct That Threatens
All Our Industry
Decision of the Privy Council rut
ing the Saskatchewan Trade Unica:
Act valid is of immense significance
to independent labor and employer's.
This is not some local bill designed
to get control of industry in a pro-
vince where industry is of relatively
minor importance. It is a pattern
to be followed in all Canada if the
CCI' ever succeeds in gaining power
of Ottawa.
This particular legislation, like
several other key bills put through
Regina since 1944, is actually the
work of the CCF national high vont-
mend. Saskatchewan, which ]las the
only CCF government in the Do-
minion, merely happens to be the
laboratory for CCF key experi-
ments. Because it is largely rural
it, has proved a most convenient
laboratory for CCF industrial ex-
periments. By a little judicious
handling, and. by . exempting agri-
cultural employment, the Douglas
government in that province has
been able to put through radical
Legislation with little opposition.
The fact that this bill has been
upheld by the Privy Council has
nothing whatever to do with the
quality of the legislation, of whether
it is good or bad. In. declaring this
bill valid the Privy Council merely
rules that it is constitutional, that
labor matters of this kind come
within the jurisdiction of the pro-
vince. The blunt truth is that this
bill is bad, a direct threat to the
independence of labor and manage-
ment throughout all Canada. says
The Finacial Post.
Under this discriminatory act all
control its labor' matters is vested
in a government -appointed Labor
Board, with unlimited dictatorial
powers. Firms which disregard or
disobey the rulings of this board
can and actually have been seized
by the government. Orders of the
board are enforceable without the
right of appeal. Labor unions are
virtually placed beyond the reach of
the law and need have only 25%
representation in any plant to reach
that privileged position. Employers
can be fined up to $5,000 and im-
prisoned for a year. They must re-
instate any employee discharged for
what the politically appointed labor
board may call union activity.
Legislation of that kind, if allow-
ed to spread, 'could deliver all Can-
adian industry, absolutely and final-
ly, into the hands of a government
board appointed by the CCF party.
It would be a death warrant for
private enterprise from the organ -
grinder to the largest corporation,
WILLIE WEATHER Says:
1 wonder if
more women act
haughty in the
winter or in the
summer.
Probably in the
winter, which
would only be
natural. Ther e
are so rnanY
more cold shoul-
ders during the
winter.
COLD
ES Ys 't M 2{
CK CHE?
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a -century's use—Dr. Chase's Kidney -
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EN
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