meet

It may not always be

the

inatahnen be harder atlil for you widow.

However you can make it pog- lllilfi I0! l!!! l0 ply QR (h; munllld llblethlt R you

protect

insurance now.

Under the Maritime ltralght- cost plan, rate;

her with life

are low.

oritimcZI/é

a‘. w. aunrnav, Manager roi-

IFICI HALIFAX.CAN.

Prince Edward Island

In’ Memo riam MRS. JOHN W. CANTELLO

putered into rest on Feb, 6th, af- . a long and painful illness which ,. bore with wonderful patience and ., tlsn resignation to the Divine ul, Christy Gillis, beloved wife of m; w. Cantello, of Pinette, in the p; year of her age. She leaves to cum their loss a disconsolate hus- d and the following children, Mary

bridge, Mass: Donald and Annie at home. also one sister (Mrs. Margaret Robertson of Fairbanks, Alaska, and two brothers, John and James of Mt. Vernon, P. E. I.

Deceased was a most estimable wo- man, as was evidenced by the large number that attended her funeral. The services at the house and grave were conducted by the Rev. Thomas A. Rodger of Belfast. The pall bear- ers were S. A. Murchison. John J. MacDonald, Neil S. Morrison, James Cantello, Donald and Dougald Mac-

, . Brundage) of Cambridge, Mass; merlne, (Mrs. Regan) also of Cam-

Klnnon. (Patriot please copy.)

Over 25% Profit

INVESTORS who purchased the original units of

Federated Capital Corporation, Oil Shares

Incorporated and Metal and Mining Shares Incor-

, med today have an average appreciation of 25.95% over and above regular dividend payments.

Federated Capital Corporation, which in 1927 sold

in Units of 2 Shares of $25 par value Gtlzfitlofrfli

an d] share of Common at $70, today has a value ' of SIDS-an appreciation of 50%.

Oil Shares Incorporated, which was originally offer- ed in April 1928 in Units of 1 Share of $50 par value Preferred and 1 share of Common at S70, today has a value of Sill-an appreciation of 24.235.

Metal d: Mining Shares Incorporated, originally oflered in October 1928 in Units of 1 Share $50 l!" “m, 3% Preferred and 1 share Common at S10, today has a value of S74-an appreciation of 5.7%.

As we believe there will be still further 80551800" appreciation in these Units, we strongly recommmd their purchase at current prices. Particulars Slit"?

furnished on r 1

Eastern Sccunriilim 43011011110110’ 40mm,

Ulllflllllllfl jam‘? some uonraul." uatlral

Q Famous Players - 9 6 s of“ First Mortgage A

xii’? FAMOUS Players Canadian Cor-

Elli/d! poratlon owns, leases, controls or

2:3!“ is affiliated with most of the modern

cum motion picture theatres in Canada,

Tw" from Montreal to Victoria. The Com-

“Di A __ pany has an uninterrupted record of afhmfm physical growth and financial success uRwn . .

Bamilba since its incorporation ill 1920. Its

f3”- gross eamings. have increased more

films than 60% within apenod of two years. vma

— We offer and recommend Famous

f,';j';;;-"" Players 6% First Mortgage Bonds,

Bu. due I948, as a desirable investment.

Price 101 and accrued interest, to

yield 5.92%, Th1‘: 1': o n: ofllu ruurflir: derfribrl an "Investment Rant sear." Wriufor a copy -]m on ngunt. , I an Royal Securities Corporatlon . Limited ' l Riley Building, Charlottetown i Telephone 822 a

y E. R. BRQ W » l 146 Richmond St, u Charlottetown Fire, Life, Accident, Sickness 8nd PlateGlass Insurance at ’ Lowest Rate.

' l Strong Stock Companies Agent‘ at Summerslde, IJoyd Lewis. ,

_ ;ar

- and if you had had the stock order-

. Protects

in Annual

almost startling in character, by Mr.

surplus and reserves of the Company. Mr. Macaulay dwelt as well in a.

companies invest their funds, and of in part:

it sets forth is a. remarkable one.

is impressive.

$500,000,000 "But there is another feature even figures indicate that the increase over

27 per cent.

That the Company is extraordinarily evident. reason. That reason unquestionably and its unusual profit-earning power.

desired to do so we could have taken

Securities Heavily Undervalued

"I have decided to take our policy- holders lnto our confidence in the most complete way, so that they may realize how fully our directors have provided against any contingency of thls- kind. You will notice that we say that the values quoted are those given by the government department or lower. There is much in those two words. ‘They mean that the values given in the report are approximately $62,500,000 less than the actual cur- rent values of those securities on the Exchanges. Then we have the addi- tional deduction from market values of $20,000,000, referred to in the re- port, and also the special contingency reserve of $12,500,000. These items

Investments

Unique Financial Position of Company l Discussed by Pre sident Macaulay

Montreal, Feb.-l8th.-'I‘he phenomenal growth and success of the Sun Life Assurance Companybof Canada lends widespread interest each year to the annual address of the President, Mr. T. B. Macaulay.

The annual meeting. which has just been held, disclosed a continuation of this expansion, but it was more noteworthy still for an ann- uncement,

strength of the Company. l-le stated that so carefully had the directors anticipated every possible adverse contingency in the money market that even a panic which would reduce the value or" the assets by one hundred millions of dollars. would still leave untouched and unimpaired the shown

manner upon the relative merits of the varied securities in which insurance have altered owing to the changed conditions of modern’ business. He said “It ls a great pleasure to move the adoption of this report. for the record

' A mere statement of the increases over the figures of the previous year In income the increase is $41,972,000; in assets $87,650,000: in surplus $9,157,000; in new assurances $112,836,000; and in total in force $408,925,000. A company with total business equal to these increases would be a. large and powerful institution. lt is but three years since we rejoiced at passing the mile-stone of $000,000,000 of assurance in force, and yet already we are nearing $2.000,000,000, while at this moment our assets exceed

written by the combined life companies of the continent was approximately

8 per cent, and the increase in the combined total in force approximately 9 .per cent. Against these percentages let me place the figures of the Sun Life: , our new asurances increased 34 per cent, while our total in ‘force increased

“I need not further emphasize the rapid expansion ‘of our business. It is but a continuation, though in accelerating degree, of our normal condition.

But people will hardly show so pronounced a preference withput

are slightly in excess of $40,000,000; but it is clearly intimated that had we

however, follow our usual conservative policy. We always have before our minds the possibility of a business depression, which might occasion heavy shrlnkag: in market values of all classes of securities. Mortgage securities may at such a time become totally unsaleable, but that fact is not patent; while every fluctuation in the prices at which stocks and bonds can be turn- ed into immediate cash is quoted on the Stock exchange.

' ,,, me~~cnantomrown~ “comma

Bulwark of $100, 000,000

Sun Life

Address

Macaulay regarding the financial

most interesting and illuminating how traditional views on investment

more striking and important. Advance the previous year in the new business

popular with the insuring public is

is the great strength of the Company. The earnings announced in the report

credit for a much larger amount. We

sets and other margins raise the anlunt to $100,000,000.

"This means that the market values of our securities could shrink by $100,000,000 without reducing _our surplus by one dollar. Such a shrink- age is of course almost inconceivable. I indeed doubt very much if even the catastrophe of another world war could produce so drastic a depression. Supposing it did, we would still have intact our undivided surplus of over $54,000,000. We are hardly likely, I think, to be criticized for lack of convervatism. I do not know any other financial corporation which has its assets so protected. I imagine we are more likely to be told that we have‘ been too conservative; if so. that is a criticism we must endure.

total $95,000,000, and our unlisted as-

Our safety margins may perhaps be

THE srocx MARKET

Dividends And Rights

By DON MOORMAN

A great many people trading in‘ the Stock market do not realize the importance of the proper registra- tion of a certificate of stock. Fre- quently the owner of stock will take delivery of the certificate in what is known as "Street Name” and expects to receive all of the benefits which accrue from actual ownership.

The proper registration of a certifi- cate of stock is of vital importance to the real owner cf it, and neglect or indifference of this point frequent- ly causes trouble and expense and in many cues results in actual loss of money.

If, in the opinion of a company, the whole or a portion of the cam- ings should be disbursed for the ben- efit of the shareholders, this disburse- ment is passed out in the fonn of a dividend. The common custom is fill‘ 5.6001133"? to declare a regular dividend policy on a yearly basis which is divided into four equal pay- ments made every three months. The dividend is paid to shareholders of record as of a certain date and on this date the stock is said to sell ex- dividend.

For example, Eastern Gadgets pays a dividend of $4.00 yearly, of $1.00 quarterly, and on February 1 sold ear-dividend. This means that the registered owners on the books of the company on February l were entitled to $1 for each share held. Note the "registered owners."

If you were carrying 100 shares on margin, your broker collected the dividend and credited ur account. But if you paid in full fo ‘the stock

ed out in your own name you would have been registered owner and a cheque for 0100 would have been ant to you by the company. Instead, you took delivery of the stock in "Street Name" and received four cer- tificates of 2t shares each in the names of people you never heard ofbe- fore. You are entitled tn 0100 but you were not a registered owner and the oomilny will not recognise you. wan to do? a... will you collect? You take the problem to your

~.- and he makes the necessary claims for you. After considerable time and correspondence he collects m for time of the certificates. but tho "regltercd owner" of the fourth

ary, was cashed. but now the man has disappeared entirely. You have lost $25. The company recognizes as owner only the name on its books corresponding to the number of the certificate. Any broker will tell you that one of the difficult features of his work is to collect dividends 1'0;- customers who have refused or ne- glected to have certificates transfer. red to their own names. RIGHTS

In order to expand its business or for other legitimate purposes s (mm. pany sometimes finds it necessary to raise new capital, and to carry out this new financing several methods may be resorted to. One popular method is by increasing the Cfipitg]. ization of the company by the sale of new stock which is first offered to the shareholders by the issuance or rights distributed much in the same manner as dividends. Rights are 11°11 “Sh Payments but are privileges to Participate in the issue of new stock at an advantage to the share. holder.

Just recently a well-known public "m"! Ovmlmny announced its inten- tion of issuing new stock in order to finance the expansion of its activities. The company stated that sharehold- ers of record of February 15 would bo given the right to subscribe to new stock at $40 per share in the proportion of one new share for each seven shares held. The privilege or right expiring on Apfl] 1,

Now, provided the owned of ‘l0 shares remains the owner of them on February l5 he receives _ 70 rights (gratis) from the company which have an approximate value of t5 per right. This entitled him to sub. scribe to l0 new shares at a, cost of 8400. whereas if he bought them in the open market to shares would cost about 8750. If he does not wish to exercise his rights he may sell them for cash in the market. but which. ever course he decided to adopt must be completed- before the privilege expires. He has received a benefit thlfiillh ownership. A3 in fire page of dividends the proper registration of the certificate is ot vital import- ance. Thc company will tune rights only to the rolls owners. ff you own the k. and take dc- livsry. make lure that all tha certifi- cates are registered in your own name, at your permanent address.

cannot b! ltlbfltd. The dividend

and insure yourself qauat loos of

m-ant w. hi“ an Fairs-runawa- we 118M1-

unnecessarily large. but safety must be our paramount consideration; and if, as we confidently anticipate. the margins prove 0t to be required, they will m time be available for dis- tribution among our policyholders. And what possibilities for our policy- holders do these margins represent!

Praises Canadian Law

"But let us look further into our earning power. There are many con- tributing factors: energetic, yet cau- tlous and economical agency manage- ment; careful selection of risks; con- servatism in always retaining a. con- siderable proportlon of our earnings to build up protective reserves; and, above all, specialization in the safe and profitable investment of the funds.

"Our investment policy is in fact a distinguishing characteristic of the Company. Our development and pros- perity wculd have been impossible but for our investment policy, and our investment policy could not have been pursued but for the wise invest- ment provisions of our Canadian 1n- surance Lau‘. That law stands before the world as a monument to the wis- dom ofcur Dominion, Parliament. Companies of many other lands are either lpermitted unwise freedom, or are hampered by restrictions, equally unwise, which prohibit investment in many of the most desirable SGCUTIUES. The Canadian Act, by contrast, per- mits reasonable freedom to the com- panies, while fully safeguarding policyholders.

Investment Provisions

“It may be timely io summarize briefly the provisions of our lau‘. They permit investments in:—f1rst mortgages (up to sixty per cent. of the appraised value): government and municipal bonds: corporation bonds secured by mortgage; preferred stocks of corporations which have paid dividends for the preceding five years: and common stocks of cor- porations which-have paid dividends for the preceding seven years, such dividends being not less than four per cent. per annum, or $500,000 per annum in amount. These provisions avoid the extreme both of unwise freedom and of harmful restriction. To my mind they are almost ideal.

“Our list of ameis shows that we own securities of large amount in all classes authorized by the Act.

“Wlththe great growth of the Com- pany, the problem of investing its constantly increasing fund becomes more and more important. What avenues are open to us? A3 for mortgages, we are most unwilling to establish agencies in distant centres, of whose real estate values, condi- tion and dangers, we know nothing. That would be to entrust the safety of our investments, even to a large extent the safety of our Company, to the judgment of strangers. Govern- ment and municipal bonds yield but low rates of interest. As for bonds of corporations, we must face the fact that apart from occasional railway and public utility issues, the strong- est corporations are rapidly redeem- ing their obligations, and no longer need to borrow. Desirable bonds therefore represent a constantly de- creasing field.

“For a very considerable part of our investments we must, consequent- ly, look to those classes of common stocks which are authorized by our Canadian Act. Fortunately, when the same degree of care as is necessary for safety in selecting mortgages and bonds is applied to the selection of common stocks, especially within the conservative limits laid down by the Act, these selected securities are, in the judgment and experience of the thoughtful and well-informed. among the choicest and safest of all invest- ments and by far the most profitable and desirable.

N0 Magic in “Bond"

"Consider mortgages. What com- pany has not suffered losses, and sometimes very heavy losses. on its mortgage investments? As to bonds. some people seem to consider that there is magic security in the label ‘bondfi This popular belief is not supported by experience. The sur- plus earnlngs and margins of many companies, over and above the divi- dent requirements of their stocks, are much greater than the surplus earn- ed by othet companies in excess of the interest requirements of their bonds, Few experienced financiers would claim that the bonds usually offered are safer than, or even RS safe as. stock of such companies as the Montreal Light, Heat & Power, American Telephone and Telegraph, Commonwealth Edison. and ntany others I could name. The payment o: the interest on the bonds is certainly no more sure than the payment of the dividends on the stocks. In the very unlikely event of the dividend on

any such choice stock being reduced it would be certain to be far more than offset by increases in the divi- dends on others. interest rate has been steadily mount- ing year after year. due solely to in- creased dividends and bonuses re- ceived on our stocks beyond the rates payable on those stocks when we purchased them. As an illustration,

Our own average

TfiiTtFlii” lcii liar Iiill‘ I Iniclct high

MraEA. Brooks, 1164 Robson Sh, Vanoouvm- B. qwntnz-"Iast winter lliadthfllltftwroqandthslalttrmert aft mo with a yrctohod cough that leomedtostaynghtnthnnunuil

Dr. Wood's

by us in i923; the actual cash yield from these in 1928, represented a re- turn of 2.38 per cent. on the pur- chase price greater than the dividends payable on these stocks at the time of purchase, while the average value of the rights and bonuses received during the intervening five years has amounted to a further .38 per cent. per annum .

Only Tested Securities Purchased .

stocks of all companies tbat do not have a long record of dividend pay- ing and prosperity. But we go much further than that. We limit ourselves almost entirely to corporations that have attained outstanding financial strength, with great reserves and re- sources already established, that sup- ply some product or service essential to the life of the community, and that usually are dominant in their respective spheres. Such corporations have their roots deep in the lifeof the nation they serve, and are almost part of the nation itself. The nation

their growing and prospering. operations can hardly fall to expand. and their profits to increase, surely and steadily; and this is bu; another way of saying that the stocks of such select and outstanding corporations can hardly fail to be of greater in- trinsic value five, ten and twenty years hence than they are to-day.

"Let me repeat what I have already said on many occasions. We do not speculate. We buy to keep. We never sell the stock merely because it has risen to a. high figure. Stock ex- change quotations influence our de- cisions as to whether we should buy a security, but not as to whether we should sell. If quotations be high, we can ignore them, and, in fact, do ignore them.

Policyholders‘ Profits Again Increased

"There is no department of a Com- pany's business whichdeserves closer study and investigation than the in- vestments oi its funds. No other de- partment will give such a generous return for the attention devoted to it

,"lt is to its investments‘ that ‘our O0 pany owes its impregnable posi- tio and the magnitude of theprofits in which our policyholders rejoice. Many years ago I expressed the hope that I would be able to announce an increased scale of profits every year for at least ten years. We now make that announcement for the ninthsuc cessive year, and I certainly cannot say that I expect the increases to stop with even the tenth announcement. Our profits are accumulating as never before, and it is lnevitabi! that a larger and larger proportion will be disbursed to our policyholders with the passing years.

A Company with a Soul

"But there are other features 0o which my mind reverts with pleasure. One ofthe most delightful compli- ments I cvcr received was when I was once introduced to an audience a5 the president of a corporation that had a. soul. That this was no mere phrase is shown by the sympa- thetic comradeship that exists be- tween all ranks of the Company's service, both at head office and in the field. It is seen also inthe en- thusiastlc support accorded us by our legions of policyholders. Our relation- ship with them ls something more than that of mere business co-opera- tion. The sense of mutual confidence and mutual appreciation is so strong as to be akin to friendship, and it is as our friends I like to think of them. This delightful relationship is the reward of unwearied and successful service on their behalf and it is a re- ward which is greatly prized.