CANADIAN INDUSTRY

Stratford Evening Post, Volume I, Issue 500, 23 July 1932, Page 3

CANADIAN INDUSTRY

FOREIGN CAPITAL NOT DOMINATING FACTOR The amount of publicity which has been given to the establishment ol industries in Canada by putside capital may have given the impression that Canadian industry is in danger of outside domination. It is true that a large amount of British and foreign capital is invested in Canada: the country could not have been developed s,o. rapidly a s it has if out. side capital had not been available. But at the present time the amount of outside capital invested in Can. ada is not a dominant nor even a very important factor in the control of Canadian enterprises.

The connections of Canadian com panics with linns in other countries include a variety of relationships. Most companies which establish plants in Canada incorporate Cana dian companies with dominion 01 provincial charters. A few establish, ed factories without incorporating, take out licenses to do business in Canada. Many make arrange, ments with a Canadian company to manufacture the if products and incorporate a subsidiary concern jointly owned by themselves and the Canadian company. Some companies wholly owned in Canada have patent and trade mark rights of foreign companies, to whom they pay royalties or some ether form of consider, atioft.

While it is impossible to obtain exact figures of thol 'investment of outside capital in Canada, the esti. mate of the Dominion Bureau of Statistics probably gives a reasonably accurate summary of the situation. The bureau estimates that on January 1. 1930, the total of British and foreign investment in Canada was •6.125,959,000 dollars. Of this sum 11,184,670,000 dollars was in dominion provincial and municipal securities, 1.674.865.000 dollars in railways, 628.230.000 dollars in loither public utilities', 520,248,000 dollars in the pulp, paper and lumber industry. 281.600.000 dollars in mining, 54(5,. 915.000 dollars in metal industries, 492’376,000 dollars in all other in. dustries, 250,000.000 dollars in merchandising establishments, 209,022,000 dollars in finance and insurance, and 338,033,000 dollars in land and mortgage. It is estimated by the bureau that the total business capital employed in Canada amounts to 17,500.000,000 cellars. Of this sum it is estimated that 05 per cent, is owned in Canada, 13 per cent, in Great Britain, 21 per cent, in the United States, and 1 per cent, jn other countries. If the national wealth of Canada, about 30,000.000,000 dollars he taken as a base, British and foreign gross investments /represent only ■ slightly more than -20 per cent, of the amount. It must also ho remembered that Canadians have Investments ahrio'ad to an estimated total of 1,781,345,000 dollars.

Canada lias been glad to welcome industries established in the country bv outside capital. The return which tliey make to their parent companies is usually infinitely ismall in coin,, parison to what they spend in Canada lor wages and materials. Where they have brought employees with them these have adopted Canadian ways and frequently become naturalised citizens."