inducements to save; such Institutions confer undoubted advantage on the community. Especially would it seem to be the case in our own country where capital is thinly distributed."

In the following year the President was able to report the Society as having "fairly taken its place amongst the financial institutions of the Province" and by 1867 the general lines of its business had become so popular that at least $4,000,000 was invested in this or similar Ontario institutions. In 1865 arrangements had been made to gradually close the issue of accumulative shares and the Act of Incorporation was amended accordingly. In 1866 there were 1,656 of these shares with subscriptions of $1,011,329; as a Savings Bank the institution had 2,357 depositors with total funds of $1,225,735; as a borrowing medium for the public it had 3,077 loans outstanding-largely in farm propertyand totalling $2,779,600. By 1869 the accumulative shares were practically all paid up and capitalized to the amount of $1,260,600.

The year 1871 saw a serious real estate inflation in Toronto followed by a widespread monetary crisis and years of severe depression which made it desirable for the Company in 1874 to obtain power from Parliament to issue Debentures. At this time the subscribed Capital of $1,500,000 was fully paid up, the Reserve Fund amounted to $457,481, the Contingent Fund was $30,000 and the cash transactions of the year were $3,264,673. Up till this time the accumulation of purely Canadian capital and its investment in the development of Canadian resources had been the primary object of the Society; now it was felt that the country needed outside capital for this purpose and the Company, as it became in this year, naturally turned to Britain. In 1875, therefore, Debentures were placed on the market and netted $334,826 while on January 1st of the following year 5,000 shares of new stock were allotted and added $325,000 more to the Company's capital. A further issue of Debentures gave them $749,826 more and in 1877 5,000 additional shares of stock were issued at $18 premium. By 1879, when the quarter-century period was reached, with Mr. Ridout still President, Mr. Paterson still Vice-President and Mr. Herbert Mason, Manager; with J. G. Worts, S. Nordheimer, A. M. Smith, Edward Hooper, Joseph Robinson and S. B. Smith as Directors; the record of business during four-year periods was as follows:

During these 25 years the average dividend paid to stockholders was 11-88 per cent. per annum; the total number of loans made was 20,381 and the number outstanding 7,800; the total amount loaned was $16,280,472 and the total outstanding $6,405,473. In 1880 investments were authorized outside of Ontario and extension planned into Manitoba. During this period the Company had to face, and did so without serious check to its progress, the depression in business, depreciation in price of property, and increasing competition amongst lenders, which marked these years and which, in the early eighties, were replaced by new conditions of national expansion and progress. By 1883 there was so marked an increase in the demand for money that 20,000 new shares were issued. In this year, also, occurred the first break in the management of the institution when Mr. Ridout retired through advanced age and Mr. Paterson passed away. Mr. Edward Hooper, a Director since 1861, was elected President and Mr. S. Nordheimer who had replaced his brother on the Board in 1860 became Vice-President; while William Gooderham, B. Homer Dixon and J. Herbert Mason were added to the list of Directors. At the annual meeting on Feb. 11, 1885, Mr. Nordheimer stated, with some enthusiasm, that: "We find this Company in the front rank, its position and resources in every way strengthened, its earning powers, I may almost say marvellous. I am just reminded that 28 years ago the assets of this Company were $68,000; they are now nearly nine millions. Then there is the unusually high dividend that has been paid every year, regularly; the accumulated rest and contingent fund amounting to nearly a million and a quarter; and I may remind you of the liberal bonus which was distributed a short time ago by which every shareholder who held one share of $50 was benefitted to the extent of at least $10-taking the new stock at its market value."

The demand for loans continuing both in town and country and a general agency having been established in Winnipeg (1881) the limit of borrowing and lending power on the existing capital was reached in 1886, and a new issue of stock ($500,000) was authorized. During the succeeding year Parliamentary authority was obtained for the issue of an improved form of Debenture stock and the opening of an office in Great Britain. In 1888 Mr. Hooper retired from the Presidency on account of age and accepted the Vice-Presidency which Mr. Nordheimer voluntarily vacated for him, while Mr. Herbert Mason received the reward of his long and valued labours by being promoted to the position of President. Mr. Wm. Gooderham died in the following year and was replaced on the Board by W. G. Gooderham. During the next half-dozen years the Company had to face the severest trial in its history-the continued business depression and low rates of interest in 1891-6, the financial crisis in the United States. and Australia of 1893, and the collapse of the Winnipeg and

Western inflation of 1882-3 which had thrown many properties on its hands. These had to be held for a number of years before the great prosperity of another era opened up the boundless opportunities of the West.

The annual Reports in 1893, and for three succeeding years, showed reduced profits in the East and more remunerative conditions in the West. At the same time there was abundance of money available at very moderate rates, had national conditions permitted its use for investment, while the credit of the Company itself had never stood higher. In 1896 there was a reduction in dividend but this was quickly followed by reviving general prosperity and improving business for the Company. Accounts in arrear were placed in a satisfactory condition, farming lands proved more readily saleable, while all securities held were rigidly inspected and re-valued in accordance with the real estate depression. Meanwhile, in 1898, Mr. Hooper had retired at the age of 90 from the post of Vice-President and been replaced by W. G. Gooderham. In 1899 steps were taken to bring together several Land Mortgage Companies with a view to saving expenses and maintaining dividends upon a high or higher level; and the Western Canada Loan & Savings Company, the Freehold Loan and Savings Company, the London and Ontario Investment Company, met the Canada Permanent in consultation and, finally, in agreement to unite. An Amalgamation Board was appointed and, under its direction, a committee of four expert Valuators, one appointed by each Company, made a thorough examination of the securities held by the respective Companies. The Canada Permanent Report of this year noted the result: "It must be gratifying to the shareholders to know that our published statements were fully confirmed, and that, so far from its being necessary to reduce our Reserve Fund as the result of that examination, it was found that the provision we had made in our Contingent Fund for possible depreciation was so much larger than was necessary that $100,000 from the Fund could be safely added to the Reserve."

At this point in its existence the Company had Assets totalling $10,325,809; its stock and reserve fund totalled $3,900,000; its record of dividends showed an average in 44 years of 1112 per cent. These dividends were only paid on the Stock which averaged about one-fourth of the total amount of capital employed by the Company. The amounts held for investment from the public, through deposits withdrawable on notice, or by debentures payable at fixed dates, totalled $32,952 at the end of 1855; $306,691 at the close of 1864; $1,254,172 ten years later; $4,944,948 in 1884 and $5,192,757 in 1899. In this latter year when the amalgamation took place the President and General-Manager was still J. Herbert Mason; the Assistant-General-Manager, who had held that post for 40 years was Alfred J. Mason; the Superintendent was R. S. Hudson who had joined the Company in 1877.

The statistics of the Company since 1879 had been as follows and they carry on, in four-year periods, the earlier figures already given:

Of the other Companies going into this amalgamation the best known was the Western Canada Loan & Savings Company, organized in 1863, and known until 1874 as the Western Canada Permanent Building and Savings Society. The Hon. George W. Allan had been President and Walter S. Lee Secretary, or Managing-Director, from its formation until 1899 and George Gooderham was, latterly, its Vice-President, while the total Assets had risen from $129,472 to $5,950,929. The Freehold Loan and Savings Company was organized in 1859; its President was C. H. Gooderham and its Managing-Director for many years the Hon. S. C. Wood; its Assets on Dec. 31. 1899, were $4,423,995. The London and Ontario Investment Company was organized in 1876; its President was Sir Frank Smith, its Vice-President, W. H. Beatty and Manager Lieut.-Col. A. Morgan Cosby; its total assets on 31st December, 1899, were $2,571,252.

At the 45th and last annual meeting before amalgamation (12th March, 1900) the President of the Canada Permanent L. & S. Co. spoke of the future as follows: "The Canada Permanent and Western Canada Mortgage Corporation begins business under exceptionally favourable circumstances. It will start out with a carefully scrutinized and selected volume of Assets, amounting to more than twenty millions of dollars, which have cost the several Companies contributing them many years of time and a large sum of money to obtain. It will inherit the agencies established and the experience acquired in Manitoba and the NorthWest Territories, as well as in British Columbia, together with a valuable connection throughout Canada and in Great Britain, which has been secured as the result of the expenditure of time and money, and all of which the new Company will get at little or no expense. Its cost of management should be a much lower percentage on capital than the aggregate cost of managing the four Companies separately. For example, these Companies have each now an office in Toronto and also one each in Winnipeg, making eight in all. Six of these will be unnecessary and will be dispensed with."

The new Company was organized on Apl. 11, 1900, as the Canada Permanent and Western Canada Mortgage Corporation

a name changed in 1903 to the more simple style of Canada Permanent Mortgage Corporation. The paid-up Capital was $5,951,350; the Reserve Fund was $1,450,057; the Assets were $22,696,885. George Gooderham was elected President, J. Herbert Mason 1st Vice-President and Chairman of Executive Committee, W. H. Beatty 2nd Vice-President. The other Directors were W. G. Gooderham, R. K. Burgess, George W. Monk, S. Nordheimer, Fred. Wyld, W. D. Matthews, C. H. Gooderham, Alfred Gooderham, George W. Lewis, G. F. Galt and R. T. Riley of Winnipeg and J. M. Robinson of St. John. The General-Manager appointed was Walter S. Lee with R. S. Hudson, Assistant-General-Manager and George H. Smith Secretary. John Massey, who had joined the Western Canada in 1872, became Manager of the Corporation at Toronto. On Jan. 4th of this year Mr. Lee passed away and was succeeded by Mr. Herbert Mason as Managing-Director. Speaking at the annual meeting on Feb. 24th, 1902, Mr. W. H. Beatty indicated something of the work which had been done by the Directors during the past two years in organizing the affairs of the Company. He added that they were working for their own interests as well as those of the other shareholders; in fact the Directors held amongst themselves $1,200,000 of Stock or over one-fifth of the total, together with $500,000 more of bonds, debentures and deposit receipts.

In presenting the 1904 annual Report to the shareholders (Feb. 7, 1905) Mr. Herbert Mason referred to the difficulties naturally connected with the complex properties assumed by the Corporation in 1900 and stated that amongst the Assets then taken over were "a number of properties held for sale by the respective Companies although the rights of the original owners had not been foreclosed. You will be pleased to know that these properties have nearly all been disposed of. Of the whole of our $24,000,000 of Assets representing investments on securities extending all over the Dominion, the aggregate of properties in default and held for sale at the end of last year amounted to less than $20,000." He added that, in 50 years' business experience, it had never been his privilege to present "a cleaner and more thoroughly satisfactory balance sheet" than that for 1904. The net Profits for 1900 had been $466,836, for 1901 $385,870, for 1902 $494,348, for 1903 $514,219, for 1904, $537,193. During the succeeding year several important changes took place.

Following the death of Mr. George Gooderham, Mr. W. H. Beatty was elected President; Mr. Herbert Mason retired from the management and active work of the institution and retained, merely, the position of Chairman of the Board of Directors; W. G. Gooderham was elected 1st Vice-President and W. D. Matthews 2nd Vice-President; while in May, 1905, R. S. Hudson and John Massey were appointed Joint-General Managers. This joint management was a new experiment in Canadian financial