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Un des symboles suivants apparaltra sur la derniAre imege de cheque microfiche, selon Ie cas: Ie symbole -^^ signifie "A SUIVRE", Ie symbole V signifie "FIN ". Les cartes, plenches, tableaux, etc., peuvent dtre filmis d des taux de rMuction diffirents. Lorsque Ie document est trop grand pour dtre reproduit en un seul cliche, il est filmd d partir de Tangle sup^rieur gauche, de gauche d droite, et de haut en bas, en prenant Ie nombre d'images ndcessaire. Les diagrammes suivants illustrent la mithode. 1 2 3 4 5 6 CANADA PUBLIC ARCHIVES ARCHIVES PUBLIQUES . I Gift ^^i OH'.-rt p.ir The Library, Glenbow Foundation, 902-llth Ave. , S.W. , Calgary, Alta. .1 ' 'II I'K IS I IN. , . -MIAN'. : I •(<• 'S !■ Canadian Securities MEMORANDA EXPLAINING THE NATURE OF CANADIAN SECURITIES MORE IN DEMAND FOR ENGLISH INVESTMENT BY Messrs. Pellatt & Osler North of Scotland Ciiambi;ks, i8 King St. West TORONTO November, 1879 C/o) ( r.nQQ^ MEMORANDA OP CANADIAN SECURITIES, Explaining the nature of those more in demand for English Investment. BANK STOCKS. These, with similar stocks all over the world, during the past few years have not been favorite securities in conse- quence of large losses sustained by shrinkage in merchant- able values, and the long depression in every department of trade. There are now gratifying signs of returning prosperity, and those Banks in condition to take advantage of it — and many of them are — will do a more profitable business, and their shares in consequence will become more valuable. i All Bank shares, with one or two minor exceptions, are fully paid up, and in case of failure carry only a further liability equal to the face or par amount of shares severally held, and are not therefore responsible for default on the part of impecunious shareholders; e.g., the holder of a share of $50 is only liable to pay $50 more. LOAN COM PAN FES STOCK. These have always been deservedly popular investments, and for years have been advancin,74H,774 (Ki P ,. '', , ^'^''^ 5,800. 4(».^ 86 C-Htiiniite.l viiluo ol propt'ity ..wiio.l by tho City Cor- l"""'^'^'"" n.OUO.OlXKXt Hevemio other than Taxiaitm 2(i8,(»lM) tH» Atnt. orAsscimnieiu. I'otul Debt. County of Pmtl, 815, 373, 246 ,!m „ C,irlt<.n !»,7r>!).424 ,.(1 „ [• J*^^- 7,l51.(i;(i (K) rrinco hdwiinl 7,21 |,on2 00 ; 80, MM) 00 21. (KM) (M) t:().(IO() 00 Tawnship of Mornin«ton 1,057,727 00 4o.r,()o 00 .. J:'"'^V I.:J'J;!,775 (M. i:{.(MM»oo ., h^t , 1.747,434 00 :r..(J00u.^ .. ^''n.mnl.y 1,000,872 00 ho.oOO 00 „ -^.'"•■'''«' SOO,.IOO (M» 40.0(M. (M) '^^'I'l'^'' 407,000 00 :!0.ooooo In addition to above, in most instances the municipali- ties own property to considerable value ; as. for example, the City of Toronto owns its Water Works, costinjj $2,500,000, and city property, real estate, the Esplanade, &c.. worth probably $2,500,000 more. The following memorandum from an eminent Counsel explains the Municipal Acts b>- which bonds or debentures are created : 'Townships ccvitflin from 50,000 acres, ui)\vard8. MEMORANDA For Messrs. Pellatt & Osler^/.j- to Municipal Securities in the Province of Ontario. The basis upon which all these securities rests is the Assessment Roll. A separate Assessment Roll is made for each munici- pality, except counties. On this Assessment Roll is set clown all the real and personal property liable to taxation within the munici- pality. The Roll is required to be sworn to, and an appeal lies to the Court of Revision of the Municipality, and after- wards to the Judge of the County Court, against errors in and omissions from Roll, A new Roll is made every year, and notwithstanding any error or omission committed in or with respect to it after revision, it is conclusive upon every person concerned. All a.ssessments for the year, and all assessments neces- sary to meet payments on account of debentures, are made upon the basis of the Assessment Roll as finally revised. It is made the duty of the Council to levy on the whole ratable property of the municipality a sufficient sum in each year to pay all valid debts, whether of principal or interest, of the Corporation fallinj^ due within the year, but the Council are limited to levyin^r more than an aL,'t,n-egate of two cents on the dollar of the actual value of the pro- I)erty, exclusive of school rates : but this can never operate to the prejudice of the tiebenture holder, because his debt is a first charge upon the property of the municipality. The Council have no ri,L(hl. without the consent of the ratepayers, to borrow upon the credit of the municipality, except some temporary loans which can be made in certain cases to meet the expen.ses of the year, until the collection of the taxes for the year. The power of borrowint,^ by the issue and sale of deben- tures extendinj^ over a number of years is vestedin the rate- payers of the municipality who are freeholders* or who are leaseholders the terms of whose leases extend beyond ths period prescribed for payment of the principal and interest secured by the debentures. Other ratepayers have no right to vote on these by-laws. A majority of the votes polled, if cast in favour of the by-law, is sufficient to carry it. Careful provision i.s made for a scrutiny into the validity of the vote within a certain time after it has been taken. * Nearly the whole of tlie land in Canada is ownol by tiu' farnicM uhu till the soil, A leasehold farm is (jnite an exception. 10 Publication of a notice to the electors of the time when the vote will be taken is required to be made a considerable time before it is taken. The by-law itself must recite correctly the whole amount of the debt of the municipality, the amount of the assess- ment, and on the face of it provide for the payment of principal and interest within the period prescribed, which must not be more than twenty years at farthest from the time when the by-law takes effect. The debentures are issued and disposed of under the direction of the Council, and will pass from hand to hand, as all net^otiable instruments do. The method of collectiuf^ the amounts to meet the sums payable under the debentures for principal and interest is the followini/^ : In each year the Clerk of the Municipality makes out a Collector's Roll, on which he enters, along with the other rates of the year, the special rate for the debentures. This rate is collected and returned to the Treasurer of the Municipality, who is required to keep it separate from the other funds of the municipality. ft is not possible to refuse to levy this rate, as the per- formance of this duty will be enforced by our Courts of justice, and the money levied will be treated as a trust fund which can be followed. 11 In practice, I believe no difficulty has ever occurred in reference to the levying of these rates. No by-law creating a debt can be repealed. The debt secured by the dcbe^itiires are made a charge upon the zvhole of the property of the municipality. Sometimes the money borrowed is for the purpose of a locality in the municipality, and then it is a charge upon the particular locality. This will always appear from the by-law under which the debentures are issued. All that I have hitherto stated applies only to muni- cipalities other than counties. • County municipalities, which are governed by repre- sentatives from each of the minor municipalities, make no Assessment Roll, but they take all the Assessment Rolls of the union municipalities,* and after equalization, so that the various different assessments may be brought into harmony with each other, they levy the sums necessary to be levied for county purposes upon the whole of the minor municipali- ties, and the sums which they thus levy are collected the same as the rates of the local municipality. Where County Councils desire to borrow sums exceed- ing in any one year $20,000, the by-laws for borrowing must • For this reason the townships have an interest in kee^ their assess- ment vahiation as low as possible. 12 be submitted to the same class of ratepayers who have the power in reference to the loans of minor municipalities in all the minor municipalities composing the county, and must be carried by a majority of their votes; and all that I have already written will apply to such loans to the County Corporations. JAMES BETHUNE, Q.C. 1 6th Oct., 1879. The above bonds — counties, townships and cities — can be purchased to return a net interest to the English investor of about 51^ to 6 per cent, per annum, even after taking into consideration the cost of transmitting the purchase money and collecting the interest, which as a rule is payable half yearly. Orders for the purchase of any Canadian securities may be sent to us direct or through our Agents, and money can be remitted by bank draft on London, payable to our order, or may be deposited with either the National Bank of Scot- land, London or Edinburgh, or with the Bank of Montreal, 9 Birchen Lane, London, for credit of our Bankers in Canada. The Canadian monetary standard is gold, and the equi- valent of £\ is $4.86^, at which rate ail conversions are made. 13 Thus, an investment of $10,000 in Canadian securities would cost i:2.054 I ss. I u/. Tiiis invested in Bonds, at par, yielding 6 per cent, interest, would -ivc $600=^:123 5^-. 9./.; deduct cost of collectino; and remitting money, say a/ out- side 1% per cent.— i:i i/^-.-would leave a net return of £\2\^s. 9./., equal to 5-91 per cent, on the investment. Investments in stocks or other securities would of course give a hin^her or lower return according to rate of interest and price. We collect coupons and dividends, making remittance by bank draft on London, and the cost will in no case exceed i y. per cent. Our Bankers in Canada are "Tin-: Dominion Bank" and "TiiK Bank of Montrkal ; " and their Bankers in Britain are the "National Bank of Scotland," and the " Bank of Montreal " in London. PELLATT & OSLER, Koi-th (if Srotlanil Chambers, IS Kim; .Sthket Wkst, Toronto. 15 ymjs j^oRTH OF Scotland CANADIAN MORTGAGE COMPANY LIMITED. CAPITAL Aiithorlzed-75,000 Shares of 410, .... £750,000. CAPITAL Subscribed [erchant, Inverurie. DAVID McHARDY, Esq., Cranford, Aberdeen. J. BADENACH NICOLSOX, Es.i., (^.lenbervie House. JOHN SMITH, Es(i., Advocate, Aberdeen. JOHN V. WHITE, Esq., Merchant, Aberdeen. ADVISING BOARD IN CANADA. JAMES AUSTIN, E.s(i., Chairman of the Dominion Bank of Canada, and President of the Gas Company of Toronto. R. H. BETHUNE, Esq., Manai,'er of the Dominion Bank of Canada, Toronto. E. B. OSLER, Esq., of Messrs. Pellatt & O.sler, Toronto. BANKERS. NORTH OF SCOTLAND BANKING COMPANY, Auehuhks DOMINION BANK OF CANADA, Toronto. GENERAL MANAGERS IN CANADA. MES.SKS. PELLATT .t OSLER 18 King Street West, Toronto. SECRETARY. LESSEL STEPHEN, Advocate, 8<) Union Street, Aberdeen. 16 TERMS OFFERED FOR LOANS, The Company offers for Money (in sunis of £50 and upwards) on Loan : — 3A per cent, per annum for One Year ; 4 per cent, per annum for Three Years ; 4^ per cent, per annum for Five Years ; and 5 per cent, per annum for Six or Seven Years. The Company encashes Bonds, Coupons, and Interest Warrants, payable in Canada, and acts as Agents for the investment or collection of money there. By its Articles of Association the Company's borrowing power is limited not to exceed the amount for which the Shareholders remain liable on their Shares, whilst the money bt)rrowed must be exclusively employed in Loans on Heritable or Leasehold Estate dfuated in Canada, and no Loan is to exceed half tho value of the property mortgaged. Lenders have thus the security of, Isx — The Shareholders ; who are liable on their Shares for an amount as large as the Company can borrow ; 2Nn— Tlie Estates mortgaged to the Company ; worth at least twice the amount of the Mortgages ; and 3R,j)_The Paid-up Capital of the Company. 89 Union Street, Aberdeen, January, 1870.