Ian
uary 17, 1WO
CANADIAN JEWISH REVIEW
YOUR INyESTMENTS
Corporation News
AEITIBI POWER & PAPER
\ concerted movement in the direction of diversification of output other than straight newsprint is contained in the announcement of the absorption of Provincial Paper by Abitibi Power and Paper. The adoption of this policy is alonjr the lines being pursued by Canada Power and Paper-Cooperation and should be a distinct aid in rectifying certain short-comings in the present situation.
Provincial Paper is one of Canada's leading producers in the high grade field and has enjoyed a unique record of expansion. No change in the personnel or management of Provincial- Paper is contemplated by Abitibi it is understood,, nor in the policies that have characterized Provincial's operation in the past.
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DISTILLERS SEAGRAMS
The statement made by Samuel Bronfman, vice-president of Distillers Corporation-Seagrams, Limited, that results indicated in the profit and loss statement for the period ended September 30th last did not reflect a full year's benefit from the Old Country brands presently marketed by the company, as these brands were only transferred to the Canadian company at various periods during the year, has an important hearing on operations of the company for the current year. Furthermore, Mr. ttronfman informed shareholders at the annual meeting on October 18th that >ince the beginning of the present fiscal year both domestic and export sales had shown a marked increase over the corresponding period of last year.
UNITED SECURITIES
Within the past week or so.an increased enquiry has been noted for L'nfted Securities common stock. Al-:liousrh there has been very little trad-:n in the issue on the Curb Market, where it is listed, it is stated some demand has developed off the market, with a consequent hardening in the bid �'rice.
At different times there have been nmors of interesting possibilities in
nnection with United Securities, due '�'� the fact that the large balk of the -;'.<<k is controlled by the Shawinijran '"d Montreal Power interests. The
liipany in turn owns over 50% of the
vital stod�=:of Montreal Tramwavs
1 ni>any and is therefore in the po-
; ,n of being a link between the two
power groups and the transporta
1 i system of Ac Island of Montreal.
Prospects For Higher Newsprint Depend on Business Conditions
Mining � Oil
ABANA
The action of the newsprint issues during the past week was indicative of the obscure outlook for a settlement of the price question. International Paper, with the big Hearst contract is proving a barrier to the establishment of a higher basis; the rescinding by Canadian operators of their announcement of a $60. level for newsprint following International1 published plans for the maintenance of the current level for the first half of the year at least being significant.
In the case of both parties, the price level for the second half of the year is left open to be dependent upon the trend of the market for newsprint in the interim. With a moderate recession in business�even if only temporary�-admittedly underway, and curtailed buying power especially marked in many luxury lines, any notable increase in demand for newsprint appears unlikely to develop. Consumption appears likely to be on a level approximately with that of last year, while in the meantime, some volume of additional production from new sources such as the Mersey Paper Mills and the Dalhousie Mill of International Paper. Thus it is problematical whether any upward revision can be agreed upon when the question comes up for consideration in mid-year.
The acquisition during the past week by Abitibi of Provincial Paper carries significance as an evidence of the big Ontario producers' inclination to diversify its operations in the pulp and paper field along the same lines as the other two leading operators on the continent, International and Canada Power.
The opinion has been expressed in recent months by newsprint executives and others close to the situation, that had the mills decided upon a price war when overproduction in the industry first developed, in preference to attempting�futilely as it has so far developed�to regulate production and markets, the situation might have been by this, time cleared up. There would doubtless have been some casualties, but the newsprint industry as a whole would probably now be benefitting in obtaining a reasonably profitable price for their product it is pointed out.
In the meantime the big Canadian operators are in good shape to ride out any storm which may develop, although with so much time now wasted in attempting regulation, it seems likely that a price war will now be resorted to only as a last resort.
Although many holders took advantage of their privilege to buy new.stock at $1.00 only to turn around and sell at the higher prevailing market, any such profit-taking was readily absorbed. It is no secret that two large Toronto stockholders are eager to collect any additional certificates and it is understood their orders are taking" care of any""hew stock which may be sold by the smaller holders in an attempt to ''scalp" a fc\v points profit. -
FALCONBRIDGE NICKEL
Probably the most interesting information passed on to shareholders of thr Falconbridge Nickel Mines, Limited, at their annual meeting in Toronto was the statement of J. Gordon Hardy, a vice president and consulting engineer of the company, to the effect that, while the annual report states that there are 1,367,000 tons of ore from the surface to the 1,000 foot level, the recent intersection at the 1,500 foot level indicates that there is a probability of another 500,000 tons of ore to that level.
KIRKLAND LAKE GOLD
CANADA PAPERBOARD
B. A. OIL
Despite the recent passing of dividend payment on the preferred shares of Canadian Paperboard Company, Limited, the outlook for the current year p^^ears to be mifte satisfactory.
Keen competition in the industry, cpwlrd with operating difficulties incidental to brinfrinsr the Toronto mill into production, made inroads into the
New Stock financing with rights to shareholders by British American Oil is looked for in some directions but, as the stock market is not in a healthy condition now for the issue of new rights, unless these rights were offered at an exceptionally low price, there are possibilities that some other means of financing could be arranged. The com-
corrrpany's earnings. However, a better pany's liquid position is very strong.
price prevails for paperboard and Canadian Paperboard is already feeling- * the benefit of a stronger market for its products. It is one of largest producers of paperboard in Canada.
(Continued on pa*e 8)
A despatch from Kirkland Lake ^ states that the recent sjrike on the Kirk-rland Lake Gold Mines was in the crosscut on the 3.875 foot level, where a vein parallelling the main vein was encountered. Assays are said to run as high as $40. to the ton over tirift widths of approximately five feet The crosscut is now said to be entering the main vein, which wilt prove the downward extension of this vein from the 3.625 foot level.
The crosscut on the 4.000 foot level is said to be almost directly underneath the point on which the new vein on the 3,875 foot level was intersected (Continued on page 8)
FORD OF CANADA
The annual -~v>rt of Ford of Canada when it appears may have some pleasant surprises. Domestic sales amounted to 52,100 units and foreign sales 35,404 units. Hence 40% of total sales were in foreign markets. This percentage suggests that while production at the Canadian plant fell in the third quarter and declined severely in the final quarter, production was maintained in the foreign fjdds.
DOMINION DEBENTURES LIMITED
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