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 A Serial Paper in three 
 parts, read before the 
 Insurance Institute of 
 Montreal. October 7, 
 1901. 
 
 I ■ ' 1,1 I — 1 1 1 I ' 1 . 1 
 
 Che Insurance and finance Chronicle 
 
 Ml iN il< ] . \ ! 
 
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■/-' 
 
 ■♦I 
 
 National Library Bibliothdquo nationalo 
 of Canada du Canada 
 
 • ^ 
 
CANADA 
 
 A SERIAL PAPER IN THREE PARTS 
 
 liend hefnrf the Tnxnranre Institute of Moiilreal, 
 Octobif r, 1001. 
 
 I' ART I.— Canada : Its Forms of Government. 
 
 By Mr. R. Hrefontaine. K.C, M.P., 
 Mayor of Montreal. 
 
 PART ll.-Canada : Its Commerce. 
 
 By Mr. E. B. Greenshields, B.A., 
 
 I'ARX III.— Canada: Its Insurance Interests. 
 By Mr. E. P. Heaton, 
 Manager Guardian Fire and Life Ass'ce Co. (Ltd.) 
 
 PTTBLISHBTD BY 
 
 THE INSURANCE AND FINANCE CHRONICLE 
 
 MOIWTRKAL 
 
 I 
 
A/ 
 
 " 
 
■ "m 
 
 PRKFACE. 
 
 
 
 I 
 
 We have received many requests to publish, in pamphlet 
 form, the account of the Special Meeting of The Insurance 
 Institute of Montreal, held on October 7, 1901, with the 
 Papers read on that occasion, all of which appears in our 
 issue of October 11. 
 
 In complying with the requests thus received, we have 
 to express the hope that the publication may serve to stimu- 
 late loyalty to " Our Dominion " and be of benefit to the 
 Montreal Insurance Institute. 
 
 The Chronicle. 
 
 f 
 
A 
 
PART I. 
 
 CANADA— THE FORM OF IT;« iK>VERNMEIfT. 
 
 Uv Mr. Raymond Prefont^ 
 Mayor ok Mon' 
 
 •t, K.C., MP.. 
 
 .AL. 
 
 Wlien I was first approached on the subject of delivering 
 a short addrebS before this Institute. althouKh I felt \cry 
 proud of the invitation to come before ^uih an important 
 body. I wi fry much disposed to ask to be excused. I 
 really did not feel that any subject I could address you upon 
 with advaniaKc vsould be of any special value to gentlemen 
 in your business, and I hesitated to inflict " >n vou an ad- 
 dress which might not be accei>table. Conscqtiently. I hesi- 
 tated, for if there is anything I pride myself upon, it is that 
 I always try to be thoroughly practical, I should hate to 
 consider myself a bore. I was reflecting with the most sin- 
 cere regret upon the prospect of having to decline your very 
 kind invitation, when your Honorary Sccretarv Mr. B. Hal 
 Brown, saved the situation by suggesting that an address on 
 the Ccnstitution of Canada by me would 1 acceptable and 
 interesting. I at once gladly took Mr. Br 's word for it. 
 and since accepting his propositi »n, I I realized that 
 probably you, gentlemen of the in<ui:iTi e business, will find 
 something to interest ycu, and piihaps somet'iing really 
 useful in a short menif ..."dum on i • 'lOrc salient points of 
 the Canadian Constitu' and sen. facts about what we 
 
 may call the governing machinery of this Canada of ours, 
 particularly with relation to insurance legislation and busi- 
 ness taxation. Naturally, time forbids anything like a com- 
 plete exposition of this very comprehensive subject, and it 
 is my intention to be very brief. 
 
 The simplest form of government, originally instituted in 
 the world by the Almighty Himself, as mankind increased 
 into families and tribes, was Patriarchal. There succeeded 
 
 f 
 
t 
 
 among the people of Iiistory. at least, the Theocratic form of 
 iTovcrnmcnt. and it was followed by the 'Monarchial form- 
 Two other forms of government have since existed in this 
 world, viz., the Patrician and the Repuhlican. Of all these 
 forms of government, only two exist in the world at present 
 —the monarchial or regal, and the republican or democratic. 
 The ft rm of government under which we live in Canada has 
 been variously described as a crowned republic, a republican 
 monarchy, and so on. I should describe it as the mos: op- 
 ular. tht> most free and best form of constitutional mon- 
 archial government. 
 
 Our Constitution is primarily founded upon that of Eng- 
 land, la it arc incorporated the Common Law of Enuland. 
 and those «rcat national compacts which have been entered 
 mto from time to time, modified as they have been by Acts 
 of the Imperial and Canadian Parliaments. The English 
 Constitution, after which ours is modelled, "comprehends." 
 says Lord Somcrs. '"the whole body of laws by wliicli the 
 people arc >;overmd, and to which, thrt)Ugli their represent- 
 atives in Parliament, every individual is presumptively held 
 to have a>sentcd." 
 
 This colossal assemblege of laws is distinguishing from the 
 term "government," according to the great Lord Boling- 
 hi oke. as follows : " The Constitution is the rule by which 
 the sovereign ought to govern at all times, and the govern- 
 ment is that machinery by which he docs govern at any par- 
 ticular time.' 
 
 The Common Law of England, I might remark here, 
 whicli is incoporated in the Constitution, is an ancient col- 
 lection of imwritten maxims and cust^'ins (kgcs iwn scriptae) 
 of British, Saxon and Danish origin, which hove prevailed 
 in 1-nglatul from time immemorial. I should perhaps add 
 a few remarks as to the great historical and fundamental 
 compacts which are consolidated into the Constitution of 
 England, and have had a very important part in forming 
 the Constitution of Canada. 
 
 The Magna Charta, chiefly derived from tlie old Saxon 
 Chaitirs wrinig by the Engli.sh nobility from weak kings. 
 signed by John at Runnyniede, in 1215, and finally confirmed 
 

 by Henry III. in 1224, secures to us personal freedom, a 
 constitutional form of gcvernnient, trial by jury, free egress 
 to and from the kingdom, and equitable and speedy justice. 
 
 The Charter of the Forests, granted by Henry HI., in 
 1217, restricted the royal privileges and prevented kingly 
 tresspass upon private property. It was a consecration of 
 the principle of private ownership. 
 
 The confirmation of the Great Charter, during the reign 
 01 the first ExI vard, in 1297. forbade the levying of taxes 
 without the consent of Parliament. The Petition ot Right, 
 a parliamentary declaration against the execution of forced 
 loans to the King, was assented to by Charles 1. in 1627. 
 
 The Habeas Corpus Act, founded on the eld Common Law 
 of England, was passed in the reign of Charles II. ki l679- 
 It compels persons in charge of a prisoner to bring his body 
 and warrant of commitment before a judge within a speci- 
 fied time, so as to enquire into the legality of his arrest. 
 The judi,'e's writ of Habeas Corpus may be demanded as a 
 right, and cannot be refused under penalty of a fine. 
 
 The Declaration and Bill of Rights was based upon the 
 Peliticn of Rights, and was passed in the first year of Wil- 
 liam and Mary, 1689. and, among other things, further de- 
 clared ihe rights and liberties of the subject. 
 
 Besides these compacts, various important Imperial .\cts 
 are embraced in the Canadian Constitution, among tlv m, Acts 
 relating to religious toleration, to the limitation ot the royal 
 pren)g:'tive, to the independence of the ju.lges and Parlia- 
 ment, to the freedom of the press, to the abolition of slave- 
 ry to Catholic emancipation, etc 
 
 I have gone into the question of the original basis of our 
 Consiituti.'u for the purpose of drawing attention to a tact 
 too often forgotten in Canada, namely, that our Constitution 
 is not an institution of mushroom growth, or even a devel- 
 opment of a century of colonial political agitation, but is a 
 system of laws, based upon centuries of earnest, courageous, 
 persistent struggles for just and equitable government m 
 that pre-eminently law-abiding and liberty-lovmg little Island 
 in the North Sea. which is at once the heart and the ma.Ud- 
 fift of this great Empire of ours. 
 
Now. let us turn for a nicneut to the study of what I 
 might call the Canadian development of our Constitution. 
 The present system has been a slow and painful growth. It 
 is pleasant to be able to say that even the scars and fierce 
 constitutional struggles liave disappeared. It is, while al- 
 most entirely a product of (he British regime, not complete- 
 ly so. Political development xuider the French lule was 
 hardly to be expected. It \<ras the rule of an autocratic mon- 
 archy, controlled by che commercial greed of individuals 
 and of great corporations, but glorified by the achievements 
 of sundry great men and daring heroes. Tlicre were occa- 
 sional protests and a certain amount of factional fighting in 
 the Colony; hut no well defined political parties or even party 
 platforms were evolved. For the last loo years preceding 
 1760, the Governor had an appointive consultive Council, 
 which, with the Governor and the Intcndant. exercised at 
 once executive, legislative and judicial functions. 
 
 Under British administration, the improvenunt was at 
 first very checkered. The Treaty of Paris, in 171.x. ceded 
 Canada to the Crown of England, securing to the people of 
 Lower Canada the free exercise of their religion, laws a;^d 
 institutions. In 1763 the English criminal laws were intro- 
 duced int(^ Canada by royal proclam.-ition: i)nt by tho Quebec 
 Act ol 1774 this proclamation was annulled, and the ancient 
 "Coutume de Paris" restored in civil matters. This .\ct 
 also perpetuated the English criminal laws, placated the 
 French Catholic population and incensed the English Pro- 
 testant one. As a result of this race foclinji. the Constitu- 
 ti>'nal Act of 1791 divided the colony into Upper and Lower 
 Canada, and at same time introduced the roi)resentative sys- 
 tem of government. Then followed the rebellion, succeed- 
 ed by the Union Act of 1840, which united Upper and Lower 
 Canada into one Province, under one government. Confe- 
 deration of Canada, under the British North America 
 Act. 1867, was the key-stone of the Canadir.n Constitution. 
 The country had passed through almost every variety of 
 constitutional experience and appeared to know just what 
 was wanted- .\n unwritten chapter of Canadian History is 
 the record of kindly help and invaluable assistance rendered 
 
by the ir.othcr-country. and cspicially tht- Home Parliament 
 at this time. 
 
 It is not necessary to ro very fully into the provisions of 
 the British North America Act: suffice it here to draw atten- 
 tion to the fact that under the terms of the Act, the Domi- 
 nion Parliament was to have control of the general affairs 
 of the Uominion. "iiicluding iratters no»^ specifically dele- 
 gate 1 to the Provincial authorities" The first subject enu- 
 merated as within the special authority of the Dominion Par- 
 liament, was ■■ the regidaticn of trade and commerce ; the 
 fifth, navigation, shipping, quarantine and the coast and in- 
 land fisheries; the seventh, banks, weights and naasurcs, 
 bills and notes, bankruptcy and insolvency. 
 
 The specified subjects directly afifecting the financial inter- 
 ests of the country, which were placed under the control of 
 the Provincial Legislatures, were as follows : direct tax- 
 ation within the province; the borrowing of money on the 
 credit <<i the province; questions iitt'ecting property and 
 civil rights; licenses to auctioneers, saloons, taverns and 
 shops; municipal institutions. 
 
 it will be observed that there was no special reference in 
 the Act to the regulation of insurance interests, though the 
 necessity lor government regulation of such must, I am 
 sure , be recognized by all. Of course, it must be remem- 
 bered, as all here will, that the insurance business, in 1867, 
 was far from l)eing as important as it is to-day. 
 
 It was i86g before the first olVicial fire insurance list was 
 compiled, and it showed fire policies aggregating, $171,540-- 
 475: premiums received, $1,785,539; losses paid, $1, o->77-20.— 
 as a result of the year s business. Twenty years after Con- 
 federation, viz.. 1897. the fire insurance of Canada, for that 
 year was represented by the following figures : an-ount of 
 policies taken. $657,098,308; premiums received, $7.^14,614; 
 ksses paid. $4,670,549. This does not irclude the ''^'^•n'"^--' 
 of companies operating under provincial licenses. The ag- 
 gregate figures would show that since 1869 the amount of 
 fire insurance, annually eflfected in Canada, has multiplied 
 nearly four fold. 
 The first official statement of life insurance available is 
 
10 
 
 that of 1875, which showed the total amount of life insurance 
 effccti'u during that year of $15,074,230. as aijainst j;44..Ui- 
 198. shown to have been effected by the statement of 20 years 
 later, during 1895. I might pfhai)* remark here, by way of 
 explanation, though it is perhaps unnecessary before my pre- 
 sent audience, that fire insurance in Canada dates from the 
 beginning of the century, life insurance from the late forties. 
 I have accomplished two things by quoting the few figures 
 mentioned in the preceding. I have given an idea of tlu- 
 con'parative insignificance of the insurance busine-s at the 
 time of. or in the years following Confederation, and I have 
 briefly indicated its rapid growth and present va>t import- 
 ance. Such a far-reaching business certainly aeservcs re- 
 cognition in the Constitution of the country, and tli? earnest 
 attention of ilie Government Judue Gwynne. .if the Sup- 
 reme' Court of Canada, in rendering judgment in :\u histor- 
 ical insuran<-e case some years ago, well expre«-ed tlu- im- 
 portance of fire insurance to the country . He remarked; 
 " When we cons^ 'er that, but for the business r.f tire insur- 
 ance, the trade and commerce of the world couM never h.ave 
 attained the magnitude and success, and the ev.-'.lted p. sition 
 which they have attained, we mr.y well say. in my judgment, 
 that the trade of the fire insurance is. I^ar cxcclh-i'rc the trade 
 of trades, without which all other tradts wnuld have dwin- 
 dled and decayed." And e(|ually strong words miarbt assur- 
 fdlv he used in speaking of the wide reaching importance 
 of life insurance,— the investment and protection of the pri- 
 vate citiT^ens, his creditors, his wife and his children. 
 
 Had the .\ct of Confederatirn been passed a few yeai-. 
 later than it was. tli.^ regulati(^M of the iu'^urance bn.siness 
 would doubtless have been specifically detailed as pi-rtainin.g 
 ey.-lusive!y either to the Dominion or Provincial Cr vern- 
 ments, probably to the former- That such di-tinct M,)C'cifica- 
 tion was omitted from the Act ha= been the cause of much 
 trouble, some litigation and. I fear, more or less injustice. 
 You all remember the law suits between the D >r, inion In- 
 surance companies and the Ontario Government over the 
 f|uestion of the right of the Provincial Government to tax 
 and regulate the business of insurance companies, even those 
 
II 
 
 holding Dominion licenses, doing business in the Pn>viiice 
 of Ontario. The companies tuo'. the gioimt! that having 
 paid the Dominion license fees and complied nith the Do- 
 minion regulations, it was unjust to expect them to pay for a 
 provincial license, and to conform to a it \v set of govern- 
 ment (provincial) regulations. The ni.nn con-tiuitional 
 contention of the companies in these suits was that the in- 
 surance business came una^"- the term " Regulation of Trade 
 and Commerce," in the British North America Act. and wa 
 consequently a Dominion matter. The constitutional c mten 
 tion of the province was that insurance contracts cwmv under 
 the clause " Proi)crty and Civil Rights in the Pr>vinoc." 
 Tlic case went to liic Privy Council and was dc ulcd ;'k. 'ist 
 the companies, the judgment setting 'orth that " Tiieir Lord- 
 ships abstain, on the present occasion, from any af.empt to 
 deiinc the limits of the auJiorily ci the D.>niinion Parlia- 
 ment in this direction. It is enough f^ir the dcci-ion of the 
 present case to say that, in their view, its authority to hms- 
 late for the regulation of Trade and Commerce docs not 
 comprehend the power to regulate, by legislation, tiie con- 
 tracts of a particular business and trade, such as the bu-uicss 
 of fire insurance in a single province, and. thercorc. that its 
 kgishtive authority does ti t, in the present case, conflict 
 or compete with the power over property and evil ri-iits. 
 assigned to the Legislature of Ontario." 
 
 The great constitution.al point at issur was left uiKiecidc i. 
 and is siill so. but the conflict of aut'iority ha- been got 
 around I can hardly say. '• been got over." by a conipmniise, 
 under which the Dominion does r.nt interfere whh Provin- 
 cial Companies, while confining their business within the 
 limits of their own province, and ti.- provinces do not in- 
 terfere, beyond the imposition of Provincial license fees. 
 with companies licensed by the Dominion. So. we have the 
 insurance business, and even individual insurance com- 
 panies, paying taxes to both the Dominiim and the Provin- 
 cial Governments, and we have the Provincial Governments 
 delegating to municipalities the right to tax the companies 
 still further. 
 
 I do not propose to discuss the question as to whether 
 
/ 
 
 13 
 
 your busin'/s-; is over-ROverne*' and over-t.ixcd. for you know 
 from txperieme far more about that tlian I do. You are 
 ;ill nun of sufficient exptrience. judgment, public spirit and 
 true p.itriotism to realize the justice of eo.uitable taxation. 
 You. who are masters in the art of insurance appreciate the 
 importance of such institutions as the militia, liuaranti'ie, 
 inspection.; of various kinds, light-house and buoy services, 
 Ijolicc forces and f c brigades, etc.. etc. Such institutions 
 constitute what may be fitly described as the roimtry's system 
 of national and municipal insurance, and aro of drect value 
 and importance to the insurance companies. And such ins- 
 titutions cannot be maintained without money. Even, the 
 Insurance Department at Ottawa, is not altogether a money- 
 makin.u device of the Government, maintained for the pur- 
 pose n\ squeezing all the money possible en of the money 
 ba^'^s oi the Insurance Companie-;. The system of inspec- 
 tion, the exaction of deposits, the licence fees, all serve as a 
 protection to the public and to the comp;'nies themselves, 
 an<l help to make assurance doubly ';ure . 
 
 If. as is often claimed, the exactions of the D 'minion. Pro- 
 vincial and Municipal Governments bear toi heavily upon 
 your business, the history of the development t)f our Consti- 
 tition. — in tact the Constitution itself. — hold c't to you the 
 hoiie that you will obtain the remedy in time. 
 
 You will have observed that the development of our Con- 
 stitution, during many centuries, has progressed along clear- 
 ly defined lines— the liberty of the subject, the protection 
 of vested interests, the public good, the equal share of every 
 citizen in the government of the country- 
 
 Ii insur, .ice men. or business men generally, desire im- 
 provements in the system of government, or changes in the 
 administ'-atinn. it is their own fault if they do not secure 
 them. The Constitution is framed so as to give us exactly 
 what we desire, and determine to have in the way of legis- 
 lation and administration so long as it is just. If. by this 
 address, 1 have brought this fact to your attention, even for 
 a few minutes, I consider that I have not occupied your 
 time in vain. 
 I have no patience with those who flatter themselves upon 
 
»3 
 
 
 1) ill!,' prac ical business nitn. who Tire cnntcnt to yrumb'e 
 at tlic iniquities oi the hiws governing then and to censure 
 tile nun \vh . repre-ent tlie.n in j/ublic pi-.^itions. and wh", 
 iKvertliiless, at election day, are '.oo indil'erent tn fn to the 
 polL-. to cast their ballots. K country's Ctnstitutii'n may be 
 ;i vi.ry model of statesmanship and poLticiil Wisdom, as I 
 believe ours is, but it must count for nothing without the 
 ir.en oi' light -iid kading in the countiy take a direct and 
 lively interest in its appHcaticii. The hoi line aloof of a 
 very large proportion of the most inflrieniial business men 
 of Canada from politics in ' n a hopeful sign. " wish busi- 
 n.ss men would follow ih. example of Eniopeans rathr 
 than Americans, in this respect, and can assure them that the 
 better class of Canadian politicians, especially the parliamen- 
 tari.ius of experience, wish sincerely they would, for the 
 keener the interest taken by the most active minds of com- 
 lUercial life in ])olitical affairs, the better for politics and for 
 those politicians who really are in public life in the hope of 
 being useful t(j their country and to their fellow-country- 
 men. 
 
A 
 
 PART 11. 
 
 CANADA— ITS COMMERCE. 
 
 I'.Y Mr. Iv. B. (iREKNSIIIKI.DS. H .\ . MONTKF.M.. 
 
 It i-; with diffidence that I make a slu rt addres'; this eve- 
 n.nK .ni tlie Commi:ce of Can:,da. a subject all important 
 to C ana<li;.ns. I kel very n.uch lionoiircd by heini; asked to 
 spink l.m I think I am a mcm'er of this li<,noi'r:ible asso- 
 ciation, under a s >rt of false pretence, as I am not an insur- 
 .Muc .nan Had I the t;.ct. ai^'recaMe marner and easy flow 
 of lanuiiage we find in the RcntlenuMi connected with Life 
 A-surame who pay us such pleasant visits, I mi^ht hope to 
 treat this subject in a proper way. As it is, I must ask you 
 t(i 111- leiiiuit with me. 
 
 I understand the term •'Commerce" not in iis restricted 
 sense, as rcieviing only to the exchan^je ot commodities, but 
 rather as meaning all the products and business of the coun- 
 ti>. that is everything connected with, and that afTects, its 
 larning puwer. 
 
 'Hi- commerce of a country i>:ay be compared to the heart 
 in the human "^vstem. It finds the health giving Huid in the 
 fields, the uiines. the factories, and by its mighty pulsations 
 drive, tlii- stream of energizmg power through every art- 
 ery in the land, a circulation which nourishes and enriches 
 wherever it goes. Those who are engaged in the affairs of 
 th.- country repre-ent the head an! the brain. As long as 
 the head s'ees that proper economic laws are followed so 
 long dues the giant heart of Commerce keep the whole sys- 
 tem in perfect b.alth. But if these laws be broken then fol- 
 low ilMicalth and disease, and. if proper remedies be not ap- 
 plied, disaster. It is. therefore, oi the utmo^-t importance to 
 every citizen, that Commerce be governed by legislation 
 suitable to its needs and warns so that the wealth-giving pro- 
 dv,<t« ,n.-,y h? used to the fullest and wisest purpose. 
 
15 
 
 It may not be considered an Irishism, if I begin hy Stating 
 what was expected of this country before it had any com- 
 merce at ull. You are all aware of the historic visit pr.id by 
 Jacquis Cartier to the top of Mount Roy:.l. He hoped and 
 l)elicvtd that he saw before him in tin- Wist the dire, t road 
 to Cl'ina and ail its treasures. This proved a truly prophetic 
 anticipation. The dream has bi-in realized, ;m(l now from 
 the shining rails of the Canadian Pacific Railway is reflect- 
 ed the liiuliway irom the Atlantic to the Pacific; and over 
 tliai road is carried not only ;he products oi the East and of 
 Europe, but also vast harvests of :.irain from Manitoba, min- 
 erals from the Kootenay, and gold from the Yukon; wealth 
 uniniaKined even in the dreams cf the early discoverers of 
 the country- 
 
 I do not intend to give you a lot of -iry figures aiiout the 
 busines-. the products and the manufactures of Canada, as 
 they appear at present. The Cynic .-aid t'u.t of all lies the 
 wor?t were Statistics. But the lew figures that follow do 
 not come into this category, as they repr stnt solid facts. 
 The last returns at my disposal are those of the fiscal year 
 endiuL; wtli J"'ne, irioo. 
 
 The Revenue of Can.tda was ??i.r.jo.(>i4 
 
 The Expenditure 4.'.975'28o 
 
 The Tonnage of the shipping coming to Canada 7,262,7-21 
 
 The Imports into Canada j^).h22.si3 
 
 The Exports from Canada i9i-*^4-7-2.3 
 
 Of which the produce of Canada itself was .... 168.972,306 
 
 The Railway mileage wa.s i".657 
 
 With gro-s earnings of -o,740-27o 
 
 Of which there was used for operating expen.scs 47/)99-798 
 The Chartered Ranks had a paid-up capital of . . 6-1735.145 
 
 And Assets of 440,348.102 
 
 And the Post Office Savings Bank had on deposit 37.507.456 
 To "how the growth of the country since 1S68 the first 
 year of Confederation, I may mention in round figures that 
 The Revenue was then 13 millions against 51 millions in 1900, 
 The Shipping was 2 million tons against 7 millions in v.x>. 
 The Imports were 73 millions against 189 millions in 1900, 
 The Exports were 57 millions against 191 millions in 190a 
 
i6 
 
 TlU' k;iihvay iiiikaKe was 2 thousan.l aKiiinst 17 thoiisjuul in 
 
 igou. 
 Till- Chartered Banks' capital was 30 millions against ^14 mil- 
 lions in 1900. 
 Anil tluir Assets 77 n)illions auainst 440 millions in kmi. 
 
 To tell lioH much the exports of Canada may be increa.^ed. 
 you have only to read the year hook pnhli?hed by the De- 
 partment oi Aurieiillnre. and s.e the pereentasje oi exports 
 from all countries to Great Britain. To mi'ntion < nly a few 
 items, in wheat we exported in 1000, cinht million dollars 
 out of a total value of loS millions; in tlotir five and :i half 
 millions out of 52 million dollars: in butter fivi millions out 
 ot 1^4 millions. The trade in butter has been increasing in 
 the past few years, owing to n.ore correct principles i)ei.ng 
 appliefl. but the above is our small iiroporiion. while Den- 
 mark sent to England forty-four per cent, of all the butter she 
 inip(jrted- Let us hojie that our exports of this will increase, 
 until soniething like the proportion is reached that we find 
 in Cheese, where over nineteen millions dollars in value was 
 sent tf> luigland from Canada out o! a total of jhiny-thrie 
 million imp n^ed. This is a fii»e example of the way a pro- 
 duct can be increased in value and ai)M)unt by the application 
 of proper economic laws. 
 
 The figures I have given show to wliat a size the Com- 
 nerce of Canada has grow'-, and this is only a beginning;, a 
 promise of what is to coui We have all the neces-aries of 
 a self-supporting and exporting nation, a fertile soil, lumber, 
 coal and minerals in ((uantity, factories of all kinds, Hour 
 mills, furnaces for producing iron rmd steel. We only wait 
 for a larger population to insure a vast increase in the Com- 
 merce of 'he country. 
 
 There arc some misconceptions about Canada still heard 
 of. even with the knowledge that is abroad at the present dny. 
 The climate has been very much misrepresented. S)me vis- 
 itors happen to meet with a few days of intense col<l, others 
 come in Summer in one of out not very numerous weeks of 
 great heat, and the report goes out on the one hand that the 
 country is too cold to live in, j.nd on the other too hot for 
 existence. The fact is that we have a very healthy and pleas- 
 
'7 
 
 ant iliniate, and it is w,ll-known ;hat tlic tiust 'i ality 
 of grain gr(Jws in just -i ch cointriis '\herc tlu tem- 
 peialurc is iltcidfdly cold m winti r, and warm in >un" 
 mer. There is also ignorance often shown about the 
 Geography of Canada, and about our customs. 1 heard 
 (if a lady in England say.ng to one who came from 
 the city of Quebec, '" I suppose you frequently sec 
 the Falls of Niagara." ' Oh, yes," was the reply, " I 
 often take a morning walk there before linakfast," adding 
 " it is only about five hundred niiles." And at the time of 
 the Uueen's Jubilee in London, a lady of rank sent an invi- 
 tation for a garden party to son'c Canadians. It was a very 
 pleasant letter and very kindly expressed, and she eniled.by 
 saying. " I'leasc come in your native dress !" Ihw. this state 
 of affairs is nearly passed away, and our country is jfetting 
 well known to be the goodly and pleasant land it really is. 
 In th s connection I wish to mention the griat d.bt Canada, 
 owes to our illustrious and beloved honorory President, Lord 
 Strathcona, for the dignity with which lie repr^ 'nts this 
 country as High Conunissicner in London, for his energetic 
 and iiersistent spreading abroad of correct iniorniation about 
 us, for his generous benevolent and educational contribu- 
 tions and for his recent princely gift to the British nation. 
 All honour to our greal First Citizen ! 
 There are many questions that naturally come u]) for con- 
 sideration in connection wiih the Commerce of Canada, such 
 as the necessity of sufficient protection for the mannfai-tures 
 of a young nation, or the advantages to the Fmp r>- at large 
 of closer federation, and the obtaining of Great Britain's food 
 .supplies from her own colonies, but the time allowed to nic 
 does not permit .my reference lo these, and other matters. 
 
 I would like, however, to say a few words on fine subject 
 that has an important beaiing cii Commerce .nd the National 
 Life-Imperialism, or expansion- I do not objct t( the 
 former term, provided the right kind of Imperialism is 
 meant, that is. one accompanied with perfect freedom. The 
 opponents of Imperialism point to History to show its evils, 
 and say it was this that ruined the great nations of Greece. 
 Macedonia and Rome. But I think that the loss of power 
 by these nations is otherwise accounted for. 
 
 ■> z'S:'^] 
 
^\ 
 
 i8 
 
 Tl.c (irteks were never able to unite their own ureal cities 
 into DHc nation. Not able to govern their own country, how 
 iiitild iliey be expected to rule their colonits. anil the people 
 thty coMviucreil t 
 
 The vast Macedonian Empire was the work of ore K^eat 
 cnn<|uerinK king, and when his nii»{hty arm fell powerless 
 at the sinnnions of tlie conqueror of all, his empire crumbled 
 away. 
 
 Komc was the grandest colonizinR power of the ancient 
 world, and ruled its vast possessions with vigour. It lost its 
 jHiwer only when it succumbed to the enervating inHuence 
 oi the Mast, and allowed itself to be ruled, and its emperors 
 elected by a band of soldiers v,lio dominated the capital. It 
 was a i.ilsc Imperialism that di stroyed the sturdy spirit of 
 the early Romans, and made them slaves. It was this that 
 luiiud Riime, and m.ide it the "Lone Mother of dead Em- 
 pires." 
 
 " This is the moral of all human tales, 
 'Tis but the same rehearsal of the past, 
 First Freedom, and then (ilory; when that fails 
 Wtalth, Vice, Coriuption." 
 Yes : that is true of Imperialism joined to slavery, but the 
 world has n(jt known until n'.odern times an Imperialism 
 joined If) Freedom. Such is the Imperialism of Great Brit- 
 ain. Wiiatevcr may be said of its conquests of territory, 
 there can be but one opinion that the iiappines<; of its sub- 
 jects is its aim. Take the recent case of Egypt. Whin Great 
 Britain entered the land, it was impoverished, its government 
 in debt, tile fellaheen oppressed and in slavery. Lo<;k at 
 wli:it a lew years have done. The life-giving Nile has taken 
 again its ancient power, nay ! that power has be( n vastly 
 increased by immense new reservoirs, and irrigating canals, 
 built with all tiie skill of modern ergi.ieering, the debt of the 
 land has beeii reorganized, tlie fellaheen who have been ab- 
 ject slaves since the time of the Pharoahs. with no protecting 
 law to appeal to. miserable because absolutely hopeless, are 
 now free and contented, guarded and governed by the same 
 laws that apply to all others. An Imperialism like this, car- 
 rying witii it in its expansion oi the Empire, such benefits. 
 
'9 
 
 and siuh incilom for all its subjects cannot but be a great 
 power for gdod- 
 
 The different nations of the world have stronn character- 
 istics that distiuK'iij^^h them from each other. The French 
 excel in wit. imagination and artistic feelinR. the Germans in 
 thorouKhntss, and so on. Ti'e strikin« feature of the Anglo- 
 Saxons is their capacity for government, a faculty of strong 
 comnmn smse applied to affairs, a rare gift. Though revol- 
 ution and war play havoc in the land, history shows that the 
 people do not lose their heads, but though for a time appa- 
 rently niisuccessiul. they always en.erge in the lon^; run, with 
 nioic freedom tliaii before. Ai.d the liberties they have wen 
 for them-^elves they give with a free hand to their colonic* 
 and subjects. Many and Sfrious mistakes ihey ha\e made 
 in the past, but in some way or other, their innate ^iolitical 
 capacity enables them to find a way oi t of al! diffi -ulties- 
 This 'la- been the history "I the i'.ritish people, and very like 
 it is that of the other great English-sp'-.iking people of the 
 United St;>te-. They are one with us in origin, in language, 
 and in laws, and they have inherited the Anglo-Saxon faculty 
 of alway> timling some satisiactory way of solving their pol- 
 itical problems. I think everytliinir points to the time beiurf 
 near at hand, when the people of the U'lited States, for whom 
 we have so great a respect and rejrard. wid be i nited in 
 heart and thought with Great I'.ritaiii. Who r-.u predict the 
 good that will follow from su(.h a cordial ir ■ i of the two 
 nation-, marching forward, to.nether, under the banner of 
 " Liberty n<nv and forever ?'" 
 
 Great ;.< are the resources and Cuniinerce of Canada, we 
 must remember that commercial success will avail little un- 
 less we ever keep beforr^ ns a lofty ideal of what our nation 
 .should be. Let us ever remember the Lion fro-n whose 
 lo.ns we sprung, and let cur proud boast be that we are ci- 
 tizens of the glorious British empire, whose possessions en- 
 circle the globe, whose laws arc liberty, wh >e subject j are 
 free. Woidd that we all could say 
 
 ■' I do love 
 >[y country's good, with ■• respect more tender. 
 More holy and profound, Jian mine own life. ' 
 
20 
 
 Canada has always be<n loyal to the inotler land. :ind she 
 has shov.'i'. her loyalty recently by sending her S')n^ to join 
 the forces of Great Britain, in the War of South Africa- 
 Close as has been the coiinection between U'i in tl^e past, it 
 has now been riveted into a ch;.in which time itscli c:!nnot 
 break hy our struggles on the ti-.-lil of battle, m tonnroii. by 
 our \i>tories; in i nniinoii. li\ (lur sorrow.-; in coinnion. lor 
 all the brave soldiers who have given their lives for their 
 country. 
 
 '' By Fairy bands their knell is runjj. 
 Hy f<irms unseen tlleii dirj>;e i- sung: 
 There Honour conns, a pilgrim gray. 
 To bless the turf that wraps thi ir clay, 
 Ami Freedom riiall a while repair, 
 To dwell, a weepini: hermit there." 
 
PART III. 
 
 CANADA— ITS INSURANCE INTERESTS. 
 
 l'.\ Mk. E. r. IIkatcin, ^Fanaiikk UK tmk I ir Ar![)[ an 
 AsMKANi i; Company. 
 
 The tiL-k assijiiuMl to nu' is to clotlic in prcsentalilt' franiu-nts 
 an array lit ti^riirt's toiicliinir tin- insurance uiteri'sts uf nnr 
 J)<>niini<>n liiat wc may ai>j)rfciati' Ikav great is tlif business in 
 wliii'li we are enjxa^ed. It is eminently littinir that tlie serial 
 pajier i<u Canada siiunld dose witii special reference to our 
 business interests, and no excuse need be offered to tlie mem- 
 bers or tiie Insurance Institute for frranting a place on tiic 
 projiramme to tins topic. 
 
 Consider for a moment, if you please, in tin- abstract, the 
 question of tlie relation insurance in all its liranclies bears to 
 the growth and development of a country's jirosjjeriiv, and, 
 wiiilst all I may liave to say on this jioint is applicable to all 
 countries, it i-^ empliatically and pn'-eminently true of a nation 
 euier^'ini; from infancy and youth to the years of maturii\- and 
 full-s-'row n manhood. 
 
 In a new and ])roj;ressive country two important conditions 
 are found to exist : both are inseparably associated, and. in 
 turn, both derive benefit from, if they clo not altop't her depend 
 uiMin the support and i>rolectioii affordeil by the insitrance 
 comi)anies in the various branches of their Imsiiu'ss. The two 
 coiiditii>ns I refer to are: first, the lack of individual ca])ital 
 to meet the necessities of lejiitimate commerce; the second, ig 
 the lack of accninulatioii of jiersoiial inde{H'ndent n.eans to 
 stipport one's de(H'ndents without the witiidrawal of siicli means 
 from the channels of trade and commerce, and the consequent 
 distress and disabilities such withdrawal would probabiv 
 <'ntail. 
 
 In the tirst condition the country primarily relies up<in its 
 banking facilitiee, and in this respect no country on the face 
 
A 
 
 22 
 
 of tlu' earth is as well served as the Doiiiinioii of Canada, and 
 ill Canada no bank stands for greater stability and .-treiigth, 
 and no bank reflects tiie prosperity of tiie emintry v'ri'ater than 
 does the Uank of Montreal, of wliieh for so n .any years past 
 ♦ he noble and distinguished CJiairinaii >>i thi> e\i iiing has Ijeen 
 the presiihng geiiins. I offer no apology for this digression. 
 l?nt to return, whilst the banks of the count ry lind the money 
 JO supply the deticiency in capital every mercantile loan made 
 bv them is uiider a guarantee against pecuniary l(.s^ arising 
 from such contingencies as lire, or by shipwreck or <ii>asterat 
 sea. In the harvesting, storing and shii)ment of tlie pioduct;^ 
 of our (ireatNorl Invest every bushel of wheat stands protected 
 oi; land by tlie fire insura : v |.olicy and on the inland waters 
 or the ocean by the marine insurance jnilicy ; so. amongst 
 niaiiv other tilings, with our allied industrii's of Imuhci. hniier 
 and ciieese. Without tliis protection the banks make no ad- 
 vances ; their money diests are liarred, bolted ami lot kcd. not 
 a co|)per is forthcoming. Is it. therefore, unrair for n,e to -ay 
 tliat the lack of capital is suiijilied only under the proteLtioi, ,,i 
 "insurance," and that without it the wheels oi commcrtc 
 would stand still, the nations growtli he >tumed and dwartVil, 
 and blank. di>mal rtiin stare us in the face '.' I deal only, in 
 this way. with the ])roducts of the co\intry, for they are the 
 country"s natural wealth, and I do so because it enables me to 
 give due and proper appreciation f tiie jirotectioii of the 
 marine polii : hut, what shall we say on thi-^ point a> con- 
 cerning that part of the country's wealth wliich is found in its 
 factories and warehouses, its stores and roideiices. its churches, 
 schools and colleges, its hospitals, asylums and charitable in- 
 stitutions, and tlu' remainder which one cannot name or num- 
 ber. Withdraw your tire insurance protection, and the loan 
 and mortgage companies retire their loans, and. like tin banks_ 
 hold wliat they have got and seal tlieir vaults again>l j.os.-ible 
 despoilers. Withdraw your tire insurance protection and 
 towns devastated by contlagration remain but a forest of 
 chininevs, even although a sympathetic world rushes ji, «ith 
 offerings of magniticent and unparalleled liljerality : withdraw 
 v<iur tire insurance protection and the workiiigman, whose 
 home is destroyed, perhaps containing his all. loses his years oi 
 
self-sacrificing labour and tlie dollars so liai.lly earned, vet more 
 hardly saved ; the trailer is reduced to iiidijreiice ; the prosper- 
 ous merchant to poverty ; the factor to the ranks of the ojiera- 
 tive, and from every side there conies the despairin>; notes of 
 those who for lack of your protection are forced i)ack iiiio the 
 strugiL'le and bitterness of life's jrreat trials. 
 
 Surely I cannot emphasize the imiioitaiice of our business 
 interests, in relation to our lire business only, by anv (.tronirer 
 illustration than that the people of ihiii coiuiinj last year paid 
 for and received the i)rotection of fire insurance policies to a 
 value exceeding ;?>S<Ml.(HX),0(Hl ( sS(i:!.4L'S,(M4. i 
 
 The second condition met witli in all new countries is the 
 lack of a('ciiiiiiilatioii of ]ier<onal independent means to siipjiort 
 one's dependents without the withdrawal of such means from 
 the channels of trade and c.immerce, I would not have v.ju 
 understand this to be a full or comiirehensixf statement of the 
 case, its iimitalioiis are evident, and in its relation to the im- 
 portance of otlH'r braiiclie-: of the insurance businos we must 
 jlive it its full and wider scopi-. You will readily perceive 
 that the jirimary reference here is to life iusuiaiice, and ycj 
 before the importance of that particular iiranch is touched iijion 
 it will >-urel\ iii>l be out of place to refer, though Init in a iiioif 
 casual way than the subject deserves, to the protection affordiMl 
 by the Accident Insuranct' to the wajje-eariieis. to the employ- 
 ers of labour and to the laiL'e numlier of thosi" w iio b\ di>able- 
 nieiit or by accidental death iiarticipate in •- ad\aiitai:es and 
 Ix'iietits. In this particular branch more '-laii SKMi.tiou.iKiO 
 (exact amount $102. ."i*4l». .';:!;! ) was last year under L'liarantee by 
 the Accident Companies, whilst half a million dollars wii- dis. 
 tributed amongst claimants, not by any means a resuii that 
 should be lijrhtly jiassed over; yet 1 fear I must be -..li-iied 
 with this brief reference to this branch, for \\hil>t jierhaps it 
 has less liearim; upon the ]ir(rs]ieiity and de\ciopmeiil of a 
 country than t'ither the Fire or Life l)ranclies it mn.-t imt be 
 overlooked. 
 
 What pictures mi^'lil we not draw of the manifcild advan- 
 tatres of the J<ife business, its miinilicent provision for the 
 widow and orphans, to say iiotiiiiii: of the untold ami incalcul- 
 able benelits lo those who. in old age, without other resources 
 
A 
 
 24 
 
 arc iiiaiiiliiiiu'it in coint'ixt liy tlif returns rt'ceixcd fruni lln-ir 
 juilifiuii.* sivinj.'^ of liirly years in tlie \va\ol' preniiiims under 
 lilV' or endipwnieni |i<ilicies. It wnuld not be (iillifult t<i hriiijj 
 lidlne to Villi by Imniely iliiistrati(in tbe incaietilai)le value of 
 the >\ >iein ol lite in>nrance. ami. if I dn not tai<e uii your time 
 in i>ur>nin^' tiiis line of ilious.'iit and illnstraticm. it is cudy 
 because I ani lirnily (■(uivinced llieie is not the slii;hlest ni-ees- 
 sil\ lluietiir. We km.w llie value, we believe in the system, 
 it is an a<Unuuleds.'ed universal want adet|nalely met. and it is 
 nut. tbeiefiire. to be wondered at tliat in ("aiiaila alone at tlie 
 close of last Near ilieeiiovnions fiuu of ;y.')4l!.S(iS,:!4H was actually 
 in force wiib tbe various F.ife Conii)anies. every dollar ot wbicli 
 was uiidei absolute iirotectiou and ready to l)e paid wlieiitlie 
 time of tbe maturity of tbe claims sliall come. 
 
 Oliver Wendell llobnes. in bis early days, ere be bad ob- 
 ti'int'd bis Medical Detrree and ere bis reputation as a prose 
 v.iiter iiad been establisbed. wasv'iveiito writinji pastoral poetry, 
 mucb of wbicb lias been fc.rL'otteii and mitcb of whicb deserves 
 to be buried in the ilim and distant past. In one of tiiese pas- 
 toral j)ieces wbilst addressint: a festival in tbe lierksbire Hills 
 says ; 
 
 •'Take a whiff fimn our fields and your excellent wives, 
 " Will ileclare its all nonsense instiriufi yotir lives." 
 
 With lields as jjoodly as any the I)ivine Creator ever planteil in 
 the loveliest aial most fertileof conntries.Canada'sanswer to the 
 ])oet's scornful utterance is life insurance in force to the extent 
 of over live hundred million ilullars. and 1 mistake the tem- 
 jier of the Canadian women if they would voluntarily sur- 
 render a dollar of their heritable. 
 
 I would not have you tbinkthat in tbe two abstract (jnestions 
 1 have propounded I have exhausted the jiroof of tlie greatness 
 of our business interests. 1 have but touched upon its great- 
 ness in the light of tbe protection afforded, antl yet ere I pa.«s 
 from this phase of the ipiestion ])ause a inoinent and take in the 
 enormity of the inteiests thus dealt with : — 
 
 Tlie total amount of insurance in fonv in Canada at Decem- 
 ber I'.lst, 1!KK>, as returned to the Dominion (iovernment is as 
 follows : — 
 
»5 
 
 Fire Insurance $it92,;i;i2,:>»j0 
 
 Life do r)4:{,8()8,')t() 
 
 Accident do 102,340,3;« 
 
 (Guarantee Inf- 22,0o!t,!iG9 
 
 |,t)(j(),.->41,008 
 To this niifiht be added at least a further sum uf |i2(il,lM)(),(X)0, 
 representing the business of provincial companit-s nut now taken 
 into consideration- 
 
 Is it possible to offer more convincing proof of the vastness 
 of the insurance interests of the Dominion, or to more clearly 
 justify the existence uf sucli institutes as ours. 
 
 But let me follow up tlie subject by sliowing you the import- 
 ance of the business interests we represent by reason of our 
 financial responsibilities. Rememl)er for every d(jllar that 
 come« to the company a corresponding liability is established. 
 Wealth is not what one is possessed of, but what oni' pos.sesses 
 wfien his liabilities and debts are <ligcharged. I'.very dollar 
 paid to an insurance company is paid to the company to hold 
 and account for ; the companies are, therefore, but stewards and 
 trustees and it is theirs to hold and invest judiciously that, like 
 tlie faithful servant, tlie one talent may multiply into ten. Do 
 not be carried away with the popular and erroneiMis notion tha 
 what a company holds is theirs, not so, it is the i)eople's to In* 
 administered with care. Thus, it is this very administration 
 of trust funds which constitutes the responsibilities in tli« 
 financial world. Let me give you the amounts thus held by the 
 various insurance companies in Canada, on December Itlst, 
 last : - 
 
 Assessment Life Companies $ o,2y.'>,227 
 
 Old Line do •'ilV'HM.OWJ 
 
 'Fire do 24,111,571 
 
 Accident and ( iuarantee Com 1 ,()7(),0)S(> 
 
 *!K),. "184,! 1.50 
 Of this amount there is deposited with the (Jovernnient of 
 Canada, for the protection of the Canadian ])eople, the sum <> 
 
 29,5.'}5.739, there is held by trustees for the sauie people the 
 sum of $12, !•'?!(, 75(), and there remains in the hands of the com- 
 panies as trustees, th^ balance amounting tof4H,10H,8(>l. 
 

 26 
 
 Tl, ' vuu li.av tlu- u...ie readily appm-iaU> the ix-sitiou inti.e 
 fina.uial worUl oecupied by the insurance co.npanu.s a con.- 
 parisnn with «hat, is ^^enerally acknowled-ed tu Ih> the iv.o 
 ha.ling eiasses ni li.iandal interests in the eousitry, nmy not be 
 
 (lilt of iilaee- , , , .. n.,> 
 
 I have already referred to the n.utnal dependence, ... the 
 •.llii.i int.Test of "hanks and insurance <'onipanies, and keep-ng 
 hHore von the tis.'nres 1 have just s:iven, relative to the as.vts 
 .,f ,1... in.inancen.n.pani.'s, we tin.l that on UeeendH-r iHst. 
 1,HK). the banks of the eountry frotn the Atlantic to tl.e lacihc 
 St 1 thus ; — 
 
 ^■"i-'r";- ;:: "S^. 
 
 Reserve lunds J 
 
 $<H>,ti.V),04:5 
 In .,th..r xvonls the insurance companies, rank with assets 10 
 percent, less ,han the combined capital and reserve tn.ids of 
 the entire hankin- system of the Nonunion 
 
 A.-ain, let .lie make a comparison with the ,n iuet.ce m the 
 linancial world of the loan, .nortptfre and bu.kh.iK soc.e les 
 and at December :!lst. ISUU (the latest returns I have been 
 able to secure), tliev stand thus :— 
 
 Reserve Fund _ ' 
 
 J.->7,2(il,272 
 In other words the combined loan, mortgajie and building.' 
 societies thronvd.out the Dominion possess, ■:. capital arU 
 reserve funds, b.lt a little oyer Cb per cent, ot • .le assets ot the 
 eombined insurance companies. • ;„ 
 
 I mav. howev.T, iH. char-ed with an unlan- compansoti, n 
 tlru I have not taken into consideration the " assets ot the 
 l.u.ks and loan con.panies. wliereas 1 have n,a<le the comparison 
 «ith the assets of the iMsurance companies on the one liand. 
 Lithe capital and reserve funds of the other institutions on 
 ;,' e ,.ther hand. I do not think the course adopted at all unla, 
 .„• the a-ets of banks and loan companies, apart Iron, capital 
 ^nd reserve funds, are merely monies b.,rro^^c.d from depositors 
 or bondholders, and invested for the common jiood. >h.reover 
 
*7 
 
 it is to Ix* observed that in the statement of assets of the insur- 
 ance conipanier* I have not inchided tiie capital or reserve funds 
 of British and American companies, fortlie ol)vions reason that 
 sucii are not assets in this country : ail that has l)een included 
 is such part of the capital and reserve funds as are directly held 
 in Canada for the l)enefit of the Canadian people. To add 
 thereto the capital and reserve funds of the British and Ameri- 
 can otlices, would unduly and irrationally inHate the imiK)rt. 
 aiiv-e of tiie insurance companies. IJear in mind, if you please 
 tiiai my only object in iii iking the comparison is to demonstrate 
 the iiitrh jxisition held by tiie insnraiice companies in the world 
 of liiiance, and which, taken in conjuction with the importance 
 of the protection offeretl, leads to no other conclusion than 
 that we may proudly hold u]i our heads and claim for cur 
 allied business interests a ixisltion rankinjr side by side with the 
 others I havi- specially referred to. 
 
 .V few witrils w ill not be out of place on the growth of t n- 
 surauce interests of the Dominion, following which I shall only 
 briefly allude to some phases of insurance legislation, and then 
 allow your imagination to picture the thousaml and one things 
 one might, could or should have said on the whole subject. 
 Our exiH'riences. it must be borne in mind, date from 18(>!t, 
 between the act of Confederati:)n, the couuiiencenient of the 
 Doiiiiiiiun, and this year we have little or no data to go upon, 
 but since Isfiii— our starting p<)iiu — we have the records of the 
 insurance dei»artment at Ottawa, which for ourpuriMises may 
 be regarded as a correct and complete return of the Comjianies 
 reportiiiir to them under the dominion Insurance Act. 
 
 For the p^rpo^^• of convenience of arrangement let me deal 
 l.rst with the /(■(•*' l>ii.iiui's.<. In 1S<)'.» the lire business of Canada 
 was transacted by twenty <'ompanies, of which five were 
 i'anadian, twelve Hritish and three Anieiican, between them 
 they had a premium income of $].7.S5,.'):!'.i, with an amount of 
 insurance in force at the cl<jse of the year of .S1SH,.V)!),.S()<». In 
 litOii the business was transacted by thirty-eight companies, of 
 whiiii nine were Canadian, twenty-one were I'.ritish anil eight 
 were American, they hail a premium income of )j!S.3Hl,948, 
 with an amount of insurance in force at the close of the year 
 4,i Ji9;iJ.:;;>2,:t(;0. in 1875 the companies of Canadian origin 
 
/ 
 
 28 
 
 reacluMl t'levcn in miiiiber, Init at tlio cluwof last vfaruiily 
 
 time tit' tlu'Sf wire in existt'iicc, and if rumor ^jx-aks com-ctly 
 
 thin ihuiiImt lia^ witliin \hv pa^t l»nv days \tevu mrtlit'r 
 
 ri'ilucttl to two. I am afraid to >fi\i' you the record of tlie 
 
 ('om|)tuiies of Canadian orijrin which since 1875 have l)een 
 
 horn aniiiist scenes rf rejoicinir. l)nt which iiaxe perisiied hy 
 
 llie madside after linhtinj; t.. the last ditcii. ( M the I'.ritisli 
 
 companies w iiich were lioinj; biisinesB in 1875 I'onr have ceastd 
 
 to l)e, wliiist one iisis taken out iiaiuralization pai>ers across 
 
 the hue, aitlioujrh still bearing the honored name>,i " tineeii." 
 
 The three American conipan'"'s doinj: hiisineFs in that year 
 
 are still with us, jirolitinj,' where we jirolit, but alas much 
 
 inoie fre(iuently sharing: our niisforliires. 
 
 The I'liUowinB interestin;; table will present the irrowth nf 
 
 the tire business :— 
 
 PreiniiiniH Amiiunt of risK.s 
 
 Year. receiveil. in toree. 
 
 1h;D $l,TR5.r)!9 $18H,H59,S0'.» 
 
 1H75 ;<.v.i»,7t!,') :^^.■J. 121.02'.' 
 
 \HH{i :{, I7!t.577 til. 51',;!, 27 1 
 
 IH'JO 5.-.SG,(l71 720,67!>,(i21 
 
 i'JOO 8.:{H1 ,9 IX 'jy2..W2.HtiO 
 
 It will thus be seen that the jrvowth in this 15ninrli has been 
 steady, contiinious and cnnsistent, sh.iwing clearly that with 
 the >:row inn wealth of tiie cimntry the demand for the pro- 
 tection < if the tire companies is as «:reat if imt trn-ater than 
 ever. 
 
 (Vimin^ iiiiw t«i the life business (and 1 only pniimse to 
 refer in anything' like detail to these Xwn brnnchesK we find a 
 sin<:ular transformation in toe sitnatiim <if 1!M)0 as compared 
 with 1H(!9 in the chief domicile nf the oimiianies oiierating in 
 Canada. In 18(!9 the life business nf the Dcieininii was 
 transacted by twenty-four ciim]ianies, of which fourteen were 
 I'ritish, nine American and mie Canadian, tbtse companies 
 between them tran-acted a business nf SI. 238. :!5'J in premiums, 
 with an amount of insurance in force at tiiecjnsenf the year 
 nf $.15,680,082. In 1875 there were thlrty-^ix cniii])anies 
 transacting business, of which si.xteen were liiitish. thirteen 
 were .\mericaii and seven were Canadian. In I'JOO there was 
 oue less company doing business, but the relative pnsitiniiB- 
 
29 
 
 liiul materially cliaiiKod. fur in tlii- yt-tir the Hritit^h comiwuiea 
 liail been reduced from sixteen in lH7j to eijtlit ; the American 
 CDiMpanies from thirteen ti> nine, wliilftthe Canadian ofKce« 
 liad K^own in nuinbt'r from seven in 1875 to eiglileen, the 
 income tliis* year, i.e. 1900, was $15,006,941 in premiums, with 
 an amount in force at tlie clo.-e of tiie year of t543.808,.U6. 
 You will thu8 see tiiat wnil>t Canadian (ire offices liave l)een 
 urowinj; fewer the Canadian life otKoes have been deveiopinj; 
 at a rapid rate until ihey now numbiT more tlian the British 
 an'l American offices combined. It is not at all ditticult to 
 find the reason for this condition of things. Our Dt)minion is 
 ha|>pily poss«'s.sed of a class << people at once healthy, 
 temperate and rational, where I' jpnity is not an unknown 
 (piaiily, and where, consequently , the life insurance compa- 
 nies can more readily count upon a fair marjjin of profit for 
 the risks they undertake ; success breeds success, and the 
 record of the life business is such as to encourage the control 
 wiiliin our own borders of the companies transactiiij; gucli 
 business. On the other hand our country has been jriven 
 woo<l in abundance, not only to miil and ship, but also to use, 
 its Use iias cause<l the erection of wooden towns, some of 
 which have in turn been swept from the face of the earth by 
 coiitla);ration ; the tire business has been a record of »lisa.ster, 
 loss, failure, not in an isolated ca.>'e nor in any one year, but 
 general and continuous. As success breeds suciess, so a 
 bu.ned child dreatis the tire, and whilst success has >;iven us 
 more native life companies, failure has sadly reduced our old 
 fire companies until, as I have shown you, "there are only a 
 few of us left." 
 
 The growth of the life insurance business is well shown in 
 the following table : — 
 
 t • • • 
 • • • • • 
 
 Premiums. 
 *! ,238,359 
 
 3,882,387 
 
 •-',721,128 
 
 8,004,151 
 15,006,941 
 
 The jieriod between 187.') and 1880 was in l>oth the tire and 
 
 life business one of distress and stagnation from causes which 
 
 everyone will readily appreciate and understand. 
 
 Year. 
 1869. 
 1875.. 
 1880.. 
 1890 . 
 1900.. 
 
 Amount of risks 
 
 in force. 
 
 $35,680,082 
 
 85,009,264 
 
 91,272,126 
 
 248,424,fi67 
 
 543,808,346 
 
/ 
 / 
 
 3° 
 
 Let me nay a word or two to you in (•lo«'in>f toiuliiitii l.-uifla- 
 tioii and affecliiiK tlie eiioniioiis interests I liave spoken of. 
 The tigiireH I have presented to you are not conjplete. they 
 represent the business of such companies as liave htn-n iicensed 
 by tlie Dominion (iovernment and who make reports to tliem 
 concerning their business and stan.ling. One hundred and 
 three companies last year ih.injf all kinds of insurance business 
 came tmder tjie jnirview of the insurance sU|nTiMten.lent. 
 But the I'rovincial companies, i.e., companies obluiinntr only 
 a Chaner for l'rc\ ncial jairposes do not so rei)ort. and whilst 
 I could have oolained all the ne«'essary tijrures concerninj; 
 Ontario and CJuel)ec, I could not have done so from the other 
 Provinces, and therefore condmled it belter to jrive you only 
 the results from the Dominion Blue l$ooks. You must, how- 
 ever, Ijear in mind the unknown quantity thus referred to, 
 and after standing; aghast at the maKnitude of the insurance 
 oi>erations rememberthat on top of all there is to be pil.-d the 
 aiUled weight of a large though untabulated local busii.cs>. 
 
 The following table shows the growths of the Banks. Loan 
 & Mortgage ("omimnies in comparison with insuraiict' (uni- 
 panies : — 
 
3» 
 
 
32 
 
 Itiit tliif ^tatfiiu'iit h'vi'hI."- to iis t)i«» jioiiu'wliut cuiiuiw m- 
 inciiU'iu-e tliat in^'tlralu•l' niiiy \h' urid ind«t'<l is tho Hubjccl of 
 Ix.tli I)<>iiiiiii<in ami I'rovliK-ial jiiriwli(tlt>ii and U'({i«latiitn. 
 V<<r t'xaiiii>l»' tlic Domiiiioii ( i«ivfriinient tolls us. in siiljstancf, 
 you cannot do business in Canada indi-ss yon dt'i>osit a (■••rtain 
 amount of niont-y with us for tlu' prf.tertion of the ix-oplf. 
 slii.w us you art" in j<ix>d standing and ri-tvivc your lii-enst". 
 Ontario, Manitoba, Nova Stotia and ISritish Columbia say to 
 us, you nia> '>avf «oni' tbrouffli the Dominion Mill, but you 
 art' not jrround tine enou^rli. if you want to (lo business willi 
 tiurp«'0].le you must vrtt a license from us, use the conditions 
 (if |M>licies Wf impose, ilo as we sav und j)ay your money like 
 little men; and in tbose Provinces where the rotrictions are 
 less niierous the taxi-s are corresix.ndiiiirly heavier, and we 
 have to pay ! pay I I pay ! '. '. We are not alone in this privilejje, 
 althoujrh we stand al..ne it- Ixiiiiir at the tender mercy of both 
 i'tderal and Local I'oliticiaiiK. 
 
 Ordinarily one would think that insurance wa.< trade and 
 connnerce. and that under the special i)rovisi<iu of the IJritish 
 North America .\ct in that revrard the re^'ulation of insurance 
 matters wiiuld naturally devolve upon the Tarliana'nt of 
 Canada. The highest court in the land ba-s decided tl <♦ we are 
 not trade, we are not comnu'rce, nor are we referred to m the 
 twenty-seven other classes assifrned specially by that .\ot to the 
 e.Nclusive legislative authority of the Parliament of Canada; 
 we have been told what we are not but not what we are, and 
 so we remain the fair subject for the provincial politician's 
 mark. 
 
 ^ly i)eii niust be laid down for my time and your patience are 
 both exh:' '^ted, yet as a last word may I l)e jK-rmitted toexi>ress 
 the earner » hope that the drawing tofether of the represi nta- 
 tives of all kinds of " insurance " may lead to feelings of mutual 
 ^•ontidence and esteem, to the maintenance of the right and the 
 suppression of the wrong in our business, to the greater develop- 
 ment of the principles of truth. righteousnes.« and justice which 
 our fathers handed down to «s a sacred trust, and which are the 
 birthriglitand heritage of our Anglo-Saxon race. 
 
 L'-> 
 
,.t mw i