well to remember that the performance has been upon strictly business and not upon patriotic lines. The consumer, who alone has suffered for his country in the process, is the patriot." In the matter of profits and margins the Commissioner emphasized the fact that in his various tables the word "margin" represented "gross, not net, profit on the commodity from the time it is laid down, all costs and expenses paid, in the storage warehouse." In his detailed tables and statistics Mr. O'Connor dealt with the ten leading storage companies of Canada by numbers and did not specifically name them in his Report. In the press, however, in Parliament when the subject was discussed on July 30, and in the public statements of the Companies concerned, it was accepted that No. 5 was the MatthewsBlackwell Company and No. 9 the Davies Company. Around this latter concern the ensuing controversy centred and the chief figures given were as follows:

In his final conclusions the Commissioner declared (1) that the business of these Companies was fairly conducted without illegal combination or excessive accumulation; (2) that individual cases of profiteering had occurred in 1916 over which he had no jurisdiction but which, occurring in 1917, would have been reported to the Attorney-General; (3) that the tendency of margins upon beef and butter was to be excessive and warranted a declaration from the Food Controller; (4) that other margins might be lessened but that reductions along this line would not benefit the consumer greatly the profits being chiefly on turn-over and volume of business. In the main, prices depended upon costs and, therefore, upon many factors and elements-farmers' charges, increased wages, delivery expenses, higher salaries, etc.

The effect of this document upon public opinion was instant. It collected and concentrated all the varying waves of feeling as to prices and costs upon one outstanding firm and brought its head under fire in a very real sense. It became personal largely because Sir Joseph had, upon several occasions, denounced undue profits in war-time with distinctive phrase and forcefulness. Incident to this, like all very successful men, he had many enemies and rivals. Some of these disliked his strong-handed guarding of munition contracts or their distribution; others resented his title and the public recognition of services of which the public were not and could not be fully informed in war time. Labour feelings were stirred up, bitter denunciation of capitalists and manufacturers as being profiteers were rife and explicit, politicians were alarmed, the consumer, as a class, was indignant. Sir Joseph Flavelle recognized the strength of this sentiment by wiring a statement to the

Prime Minister from Toronto on July 13, in which he described the press comments on the business of the Davies Company as "grotesquely untruthful in mass and in detail" with "a curious mixture of ignorance and malice.'

He stated that he had offered the Imperial Government to operate for it during the War, on a cost and percentage basis, in bacon, canned meats and pork and beans, but that they preferred the open market. As to this: "All army purchases of bacon are made in London. All army purchases of canned meats and pork and beans are made in Canada. Both are made in open and untrammelled competition with the world. If it is wrong to secure a share of this and other business under these competitive conditions, the Company has been guilty of such a wrong and of no other." Following this the Davies Co. issued a full-page advertisement to the daily press of Canada, reviewing the Report and stating its own business condition for the first time in public. It was signed by the General Manager with an intimation, also, that "this terminates all public statements of the Company-except at an official investigation.' Mr. Fox stated that on its dealings in Live-stock (1,043,000 head in year of Mar. 27, 1917) and of 160,000,000 lbs. of meats, 6,550,000 lbs. of butter, 5,650,000 dozens of eggs and 26,500,000 tins of canned goods, the net profits were two-thirds of a cent per pound in meats, 104 cents per pound on butter and cheese and per dozen on eggs, and one-half a cent per tin on canned goods; the turnover from all operations was $40,000,000 and the net percentage of profit before deducting war-tax was 3'45%.

Mr. O'Connor's margin, bacon especially, was denounced, as showing "dangerous inability to co-ordinate figures"; from this margin of 5'05 cents' profit there should be deducted operating charges for labour, curing materials, refrigerator, etc., or 102 cents per lb.also 2'09 cents as the cost of transportation and of sale in England. The final profit would, he said, be much less than one cent per pound; the increase in the margin over 1915 was due to increased ocean freight rates and war insurance. In his Report Mr. O'Connor had intimated that certain figures were difficult to obtain and suggested an official Accounting inquiry. This the Government agreed to and on Sept. 18 the session of a Royal Commission, composed of G. F. Henderson, K.C., Ottawa (Chairman), Geoffrey Clarkson, Toronto, and A. B. Brodie, Montreal (the latter expert accountants), opened in Toronto with J. W. Bain, K.C., as counsel representing the Government, W. N. Tilley, K.C., for the Davies Company, and Gordon Waldron for Saturday Night, which had been fiercely attacking the Company and its President in a series of articles. Only a few of the main points of the inquiry can be mentioned. E. C. Fox, General Manager, testified as to the holders of 20,000 shares of which Sir J. W. Flavelle held 10,067, and stated that the President had little to do with the existing management of the business. The Company had an original capital of $250,000 and the existing stock was $4,000,000, largely created from profits. It was found to hold 40% of the shares of the Harris Abattoira big Toronto concern, 60% of the Sheede-Thompson Company

in London, which acted as its English agents, and $25,000 in the Ontario Fertilizer Company.

In his testimony (Sept. 19) Mr. Fox further stated that bacon was weighed for sale on reaching England, that a much-discussed process called post-curing "added to the weight of the article to the extent that it absorbed extra water but that the primary purpose was one of convenience in shipping." Mr. Fox dealt in his evidence with the rapid rise in pork products during 1915 and 1916. He stated in reply to Counsel that the returns of the contract with the British War Office, at this time, insured his firm receiving the cost of the product: "Whatever the market value of bacon was in London we would get, provided it was the same or higher than it was here." Mr. Fox also admitted that after the expiry of the British Government's contract in August, 1916, the price of pork went down about two cents and had not risen yet to the old price. He refused to give the reasons for this cancellation. He assented to Mr. Henderson's statement that "the more pork you could buy the more profits you stood to make in the event of the market continuing to rise"-subject to incidents which might occur from week to week. He declared that "the Davies Company in the years ending March, 1913 and 1914, stayed in the English market because they believed the hog industry in Canada could only be sustained through that market, and stayed at a loss to themselves." He claimed (Oct. 12) that profits came to his firm in recent years out of the war-export (British) business and not out of the local consumer. T. F. Matthews, of the Matthews-Blackwell Company, stated (Oct. 19) that his Company had no guarantee from the British Government and that the competitive buying of hogs by his firm and the Davies people, to supply British bacon requirements, ran prices up. He had never heard of post-curing until now and, of course, his firm did not use it.

Sir Joseph Flavelle testified on Oct. 20 as to the Company's relations with other concerns, its methods, business in England, nature of reports and basis of estimating profits, etc. Upon the moot question of curing-the post-cure system under which temporary weight (afterwards stated to average 2%, or a total of 1,600,000 lbs.) was added to the bacon by a pickling or second preservative process-the witness declared that his was the responsibility, that the method was worked out in a pre-war period in order to compete with Danish packers who first used it, that it facilitated shipping and the holding of consignments for specific export. During this prolonged examination some personal references of a public nature, and important in the final analysis, occurred. Sir Joseph agreed with Mr. Bain that without the War the demand for bacon would not have come which made the extra profits possible; he frankly admitted that he was in this and other Companies for business and not philanthropic reasons; stated that the great proportion of the profits were made from sales to the British War Office; claimed that the upward trend of prices was general and that the Davies Company only shared with the rest and that their success in getting business was due, largely, to their long connection in Eng

land; stated as to the profits of 100% on capital, which Mr. Bain alleged to be the 1917 figures, that he had no "qualms of conscience.' His explanation of a famous speech was as follows-after a reference to great need of munitions at the Front, and the chance of Canadian manufacturers failing in delivery and breaking their pledges because of increased costs: "I said that if it is profits in relation to what I have seen and what I have told you, then your profits ought to go to the Hell to which they belong. And, sir, I would say just the same to-day." In reply to a charge in the Commons on July 30 that his Company had preferential shipping privileges on munition ships, Sir Joseph wrote a letter, which was read in the House, that the bacon under Government contract was controlled by the British Minister of Shipping and that his firm's other consignments of bacon took chances with those of other shippers.

The Royal Commission reported on Nov. 19 as to their investigation of the O'Connor Report and found that "the percentage profit (Davies) during the four War-years on meat products sold to the Canadian public was 12.7 per cent.; on specialties and cooked meats 13.2%; on produce purchased in the United States and sold outside of Canada 16%; and on English exports 72.5%"; that "from August, 1916, to February, 1917, the Davies Company enjoyed the very distinct advantage over its competitors of having a fixed minimum price, which unquestionably gave it greater assurance in making its purchases of live hogs"; that "the Davies Company could not lose in a declining market, but in an advancing market every chance was in its favour"; that the post-cure was adopted in 1902, prevented deterioration and enabled products to be held longer. Sir Joseph Flavelle's statement that he did not in any way use his official influence to obtain their British contract was accepted. The figures on certain widely-discussed points were as follows:

Following this publication came a violent renewal of the controversy and much criticism of Sir J .W. Flavelle. A few papers such as the Ottawa Journal-Press, the Winnipeg Telegram and the Manitoba Grain Growers' Guide, demanded his retirement from the Munitions Board, but the position was an Imperial one and Sir Joseph did not believe that he had done anything wrong in accepting the profits of his business. As to this the Toronto Globe of Oct. 24 declared that he had failed "to apply to his own firm the higher ethics of war contracts which he imposed upon munition manufacturers." Incidentally, the popular feeling in this matter was responsible for much misunderstanding and many mis-statements as to titles in general and the specific honour conferred upon the Chairman of the Munitions Board. Basing action upon the Henderson Report the Government took up the question of Packers' profits

and Hon. N. W. Rowell was appointed Chairman of a Cabinet Committee to deal with the question of limiting such profits in future. On Oct. 31 the Food Controller stated that the Government would establish effective control over all packing-houses and cold storage plants-the statistics for Dec. 1 showing 114,505,797 lbs. of butter, cheese, beef, pork, bacon and mutton in storage compared with 110,676,765 on Nov. 1, 1916.

The Canadian Patriotic Fund. This war organization of which H.R.H. the Duke of Connaught had been President in 1914-15-16, and H.E. the Duke of Devonshire President in 1917; of which Sir Thomas White was Hon. Treasurer since its inception, Sir Herbert Ames Hon. Secretary, and P. H. Morris Secretary, continued its splendid work. Up to Dec. 31, 1917, total Receipts from the voluntary contributions of the Canadian people were $34,596,290 and total disbursements to the dependants of Canadian soldiers $25,140,327—with a balance in hand of $9,455,969. The contributions and advances by Provinces were as follows:

Sundry totals such as $142,936 from the Public Service of Canada and special gifts from Great Britain, United States, etc., totalled $241,225.48 of receipts and $13,350.86 of Advances. Manitoba had an entirely separate Fund and the amount specified above had been sent to Ottawa in subscriptions which were afterwards remitted to the Provincial Fund. An analysis of these figures showed interesting results. In Ontario the cities gave the large single amounts-Toronto and York Counties $4,964,757, Hamilton and Wentworth County $1,315,270 and Ottawa with Carleton County $1,178,136-but without the counties they could not have met the situation at all. The County Councils, largely composed of farmers and very largely representing them, voted much greater sums than the public generally knew of-Bruce County Council $177,500; Carleton $36,000; Dufferin $32,050; Elgin $131,000; Essex $108,000; Frontenac $46,750; Grey $99,000; Haldimand $70,000; Halton $32,086 (and maintenance of soldier dependants within its borders); Hastings $56,000; Huron $183,000; Lincoln undertook charge of soldiers' dependants within its boundaries-except in St. Catharines; Kent $97,847; Lambton $110,400; Lanark $48,000; Leeds, $85,000; Lennox $39,600; Middlesex $132,000; Durham $186,500; Ontario $138,390; Peel $96,000; Perth $86,000; Peterborough $59,500; Prescott $1,900; Renfrew $82,842; Simcoe $128,000; Stormont $83,200; Waterloo $74,698 and Wellington $78,250. These subscriptions totalled $2,500,000 and there were other considerable sums from farmers not distinguished in the County branch reports of the Fund.

The smallest contributions were the $1,900 from Prescott and $1,974 from Haliburton; in Quebec, however, the Counties of Bagot, Berthier, L'Assomption, Laprairie, Lévis, Richelieu, Soulanges, Verchères and Two Mountains gave nothing, while Beauce, Chicoutimi, L'Islet, Matane, Portneuf, Terrebonne, Vandreuil and Wolfe gave under $1,000. Montreal City and Island totalled $6,457,595, Quebec City and District $601,866 and Sherbrooke City and County $155,424, so that the 46 counties containing the bulk of Quebec's agricultural population contributed about $500,000. Interesting or notable contributions during 1917 included $843,000 of Ontario Government grants, $110,000 from the Grand Trunk Railway, $5,700 from the Western Mennonites, $90,000 from the Quebec Government and $44,344 from C.P.R. employees. The collection of $15,000,000 in 1917 was not an easy task and the result was in excess of expectations; it commenced with an earnest appeal from the Duke of Connaught for estimated requirements of $12,500,000 and the statement that 55,000 families