1917, 11.78 per cent. In 1921 earnings from 

 special income equalled 4.22 per cent., as against 

 4.21 per cent, in 1920, and 3.48 per cent, in 1919. 



The outstanding feature of the figures sub- 

 mitted is the reflection of strict economies in 

 keeping with the times which permitted the 

 company to achieve the result shown in the face 

 of a considerable decline in gross earnings from 

 the record figures of 1920, the decline in working 

 expenses being proportionally much greater 

 than the reduction in gross earnings. 



Gross earnings for the year were $193,021,- 

 854, as compared with $216,641,349 in 1920, and 

 $176,929,060 in 1919. Operating expenses are 

 shown at $158,820,114, as comparecl with $183,- 

 488,305 in 1920, and $143,996,024 in 1919. 

 After the deduction of fixed charges and the 

 usual $500,000 for pension fund a balance of $22,- 

 182,668 is left applicable to dividends, as com- 

 pared with $21,877,635 in 1920, and $22,271,526 

 in 1919. 



After dividends, a surplus of $755,391, com- 

 pared with $450,359 in 1920, and $844,250 the 

 previous year, is obtained. 



Special income, at $10,987,199 showed a 

 slight increase over that of the previous year, 

 and after deduction of dividends of 3 per cent., 

 and the balance added to previous surplus, the 

 present surplus at credit of special income 

 account amounts to $21,767,490. 



Following are the earnings of the enterprise 

 for the past four years : 



1921 1920 1919 1918 



Gross earnings . . . $193,021,854 $216,641,349 $176,929,060 $157,537,698 

 Working expenses 158,820,114 183,488,305 143,996,024 123,035,310 



Net earnings ... $ 34,201,740 $ 33,153,044 $ 32,933,036 $ 34,502,388 

 Fixed charges 11,519,072 10,775,409 10,161,510 10,177,513 



Surplus . . . . $ 22,682,668$ 22,377,635 $ 22,771,526 $ 24,324,875 

 Pension fund 500,000 500,000 600,000 500,000 



... $ 22,132,668 $ 21,877,635 $ 22,271,526 $ 23,824,875 

 193,977 



Balance 



Transferred. 



$ 22,182,668$ 21,877,635$ 22,271,526$ 23,630,898 

 Preferred dividends 3,227,276 3,227,276 3,227,276 3,227,276 



$ 18,955,392 $ 18,650,359 $ 19,044,250 $ 20.403,621 

 Common dividend 18,200,000 18,200,000 18,200,000 18,200,000 



Net surplus for year $ 755,391$ 450,359$ 844,250$ 2,203,621 



SPECIAL INCOME ACCOUNT 



Special income $ 10,987,199 $ 10,966,448 $ 9,049,342$ 8,128,751 



Dividends 7,800,000 7,800,000 7,800,000 7,800,000 



Balance ...$ 3,187,199$ 3,166,448$ 1,249,342$ 328,751 

 Previous balance 18,580,291 15,413,843 14,164,501 13,835,750 



Spec. inc. act. surplus.... $ 21,767,490$ 18,580,291$ 15,413,843$ 14,164,501 

 'Net earnings commercial telegraph, January and February transferred 

 to special income account, 



Referring to the foregoing, the Montreal Ga- 

 zette in its editorial column, on the day of 

 publication of the report, says: 



The recapitulation of earnings by the Canadian Pacific 

 Railway Company for the year 1921 will undoubtedly 

 come as a pleasant surprise to those who have not been 

 carefully following the activities of the company, week by 

 week and month by month, to see the splendid effort being 

 made by this great road during a period of such difficulty 

 to business enterprises in general and perhaps to carriers 

 in particular. 



The conditions which have obtained during the period 

 under review make the results shown by the company a 

 monument to the economic acumen of its management. 

 Railway labor, which is one of the greatest items of expense 

 in operations, has not been disposed to accept the wage 

 reductions demanded by the times to the same extent as 

 labor in almost any other enterprise. Despite this fact, 

 the management of the C. P. R. has been able to bring 

 down operating expenses to an extent that, in the face of a 

 sharp decrease in gross from the record figures of 1920, a 

 higher percentage of earning can be shown on the capital 

 stock. 



It is, perhaps, as it should be that Canada's greatest 

 enterprise should set an example in this respect, and it 

 would be well for a great many of the lesser organizations 

 to study the methods of the C.P.R. for the good of them- 

 selves and that of the economic structure of the Dominion 

 as a whole. 



Canadian Shoe industry 



Canadians are now consuming footwear 

 ninety per cent of which is of their own manu- 

 facture, whereas twenty years ago fifty, sixty or 

 even seventy per cent of the Canadian annual 

 consumption was imported stock. Canada to- 

 day can supply the Dominion's entire needs in 

 footwear, and the Canadian manufactured pro- 

 duct compares very favorably, grade for grade, 

 with that of any other country. Such impor- 

 tation as persists is unwarranted, and with a 

 production in 1921 of about fifteen million pairs 

 of shoes, which due to the general slump in trade 

 was considerably below normal, Canada was 

 able to engage in an export trade of some volume. 



The Canadian shoe industry is one of the most 

 important as well as one of the oldest of the Dom- 

 inion's manufacturing activities and at the 

 present time occupies something like sixth place 

 amongst the country's industries. The making 

 of shoes in Canada was firmly established as far 

 back as 1667 and ha? developed with the country's 

 population until in 1920 there were 171 factories 

 in Canada capitalized at $32,500,000 with 13,000 

 workers who had 70,000 dependants and were 

 receiving in wages and salaries $13,500,000. 

 The annual production in that year was $65,500,- 

 000. In 1921 the industry witnessed an expan- 

 sion in the establishment of new plants though 

 the total production was lower due to general 

 conditions 



A peculiar feature of the boot and shoe indus- 

 try in Canada is that in its every phase it is 

 essentially Canadian. This is true in regard to 

 the control of factories, the use of Canadian raw 

 material, and to a large extent, the use of Cana- 

 dian made machinery. The only factories which 

 were established in the past by United States 

 manufacturers have since passed into Canadian 

 hands. The industry is almost exclusively con- 

 fined to the provinces of Quebec and Ontario, 

 the former having pre-eminence with about 

 ninety per cent of the Dominion's factories. 

 Montreal and Quebec cities alone have ninety- 

 eight plants. Quebec's share of the year's out- 

 put accounts for about sixty-seven per cent of the 

 Dominion's whole and Ontario for about thirty 

 per cent. 



65 



