High finance/low strategy: Corporate collapse in the Canadian pulp and paper industry, 1919-1932

Business History Review

Volumn 74, Issue 4, 2000, Pages 611-656

  Boothman, Barry E C ^a  

^a NONE

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EID: 0034562385     PISSN: 00076805     EISSN: None     Source Type: Journal    
DOI: 10.2307/3116469     Document Type: Article

References (137)

1. Alfred D. Chandler, Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, 1977), 377-500; Richard B. Du Boff, and Edward S. Herman, "Alfred Chandler's New Business History: A Review," Politics and Society 10 (1980): 87-110; Leslie Hannah, "Scale and Scope: Towards a European Visible Hand?" Business History 33 (1991): 297-309; Barry Supple, "Scale and Scope: Alfred Chandler and the Dynamics of Industrial Capitalism," Economic History Review 54 (1991): 500-14; Steven Tolliday, ed., "Scale and Scope: A Review Colloquium," Business History Review 64 (1990): 690-735; Charles Sabel and Jonathan Zeitlin, "Historical Alternatives to Mass Production: Politics, Markets and Technology in Nineteenth-Century Industrialization," Past and Present 108 (1985): 133-76. See especially the balanced overview by Richard R. John, "Elaborations, Revisions, Dissents: Alfred D. Chandler Jr.'s The Visible Hand After Twenty Years," Business History Review 71 (1997): 151-200.
2. Alfred D. Chandler, Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, 1977), 377-500; Richard B. Du Boff, and Edward S. Herman, "Alfred Chandler's New Business History: A Review," Politics and Society 10 (1980): 87-110; Leslie Hannah, "Scale and Scope: Towards a European Visible Hand?" Business History 33 (1991): 297-309; Barry Supple, "Scale and Scope: Alfred Chandler and the Dynamics of Industrial Capitalism," Economic History Review 54 (1991): 500-14; Steven Tolliday, ed., "Scale and Scope: A Review Colloquium," Business History Review 64 (1990): 690-735; Charles Sabel and Jonathan Zeitlin, "Historical Alternatives to Mass Production: Politics, Markets and Technology in Nineteenth-Century Industrialization," Past and Present 108 (1985): 133-76. See especially the balanced overview by Richard R. John, "Elaborations, Revisions, Dissents: Alfred D. Chandler Jr.'s The Visible Hand After Twenty Years," Business History Review 71 (1997): 151-200.
3. Alfred D. Chandler, Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, 1977), 377-500; Richard B. Du Boff, and Edward S. Herman, "Alfred Chandler's New Business History: A Review," Politics and Society 10 (1980): 87-110; Leslie Hannah, "Scale and Scope: Towards a European Visible Hand?" Business History 33 (1991): 297-309; Barry Supple, "Scale and Scope: Alfred Chandler and the Dynamics of Industrial Capitalism," Economic History Review 54 (1991): 500-14; Steven Tolliday, ed., "Scale and Scope: A Review Colloquium," Business History Review 64 (1990): 690-735; Charles Sabel and Jonathan Zeitlin, "Historical Alternatives to Mass Production: Politics, Markets and Technology in Nineteenth-Century Industrialization," Past and Present 108 (1985): 133-76. See especially the balanced overview by Richard R. John, "Elaborations, Revisions, Dissents: Alfred D. Chandler Jr.'s The Visible Hand After Twenty Years," Business History Review 71 (1997): 151-200.
4. Alfred D. Chandler, Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, 1977), 377-500; Richard B. Du Boff, and Edward S. Herman, "Alfred Chandler's New Business History: A Review," Politics and Society 10 (1980): 87-110; Leslie Hannah, "Scale and Scope: Towards a European Visible Hand?" Business History 33 (1991): 297-309; Barry Supple, "Scale and Scope: Alfred Chandler and the Dynamics of Industrial Capitalism," Economic History Review 54 (1991): 500-14; Steven Tolliday, ed., "Scale and Scope: A Review Colloquium," Business History Review 64 (1990): 690-735; Charles Sabel and Jonathan Zeitlin, "Historical Alternatives to Mass Production: Politics, Markets and Technology in Nineteenth-Century Industrialization," Past and Present 108 (1985): 133-76. See especially the balanced overview by Richard R. John, "Elaborations, Revisions, Dissents: Alfred D. Chandler Jr.'s The Visible Hand After Twenty Years," Business History Review 71 (1997): 151-200.
5. Alfred D. Chandler, Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, 1977), 377-500; Richard B. Du Boff, and Edward S. Herman, "Alfred Chandler's New Business History: A Review," Politics and Society 10 (1980): 87-110; Leslie Hannah, "Scale and Scope: Towards a European Visible Hand?" Business History 33 (1991): 297-309; Barry Supple, "Scale and Scope: Alfred Chandler and the Dynamics of Industrial Capitalism," Economic History Review 54 (1991): 500-14; Steven Tolliday, ed., "Scale and Scope: A Review Colloquium," Business History Review 64 (1990): 690-735; Charles Sabel and Jonathan Zeitlin, "Historical Alternatives to Mass Production: Politics, Markets and Technology in Nineteenth-Century Industrialization," Past and Present 108 (1985): 133-76. See especially the balanced overview by Richard R. John, "Elaborations, Revisions, Dissents: Alfred D. Chandler Jr.'s The Visible Hand After Twenty Years," Business History Review 71 (1997): 151-200.
6. Alfred D. Chandler, Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, 1977), 377-500; Richard B. Du Boff, and Edward S. Herman, "Alfred Chandler's New Business History: A Review," Politics and Society 10 (1980): 87-110; Leslie Hannah, "Scale and Scope: Towards a European Visible Hand?" Business History 33 (1991): 297-309; Barry Supple, "Scale and Scope: Alfred Chandler and the Dynamics of Industrial Capitalism," Economic History Review 54 (1991): 500-14; Steven Tolliday, ed., "Scale and Scope: A Review Colloquium," Business History Review 64 (1990): 690-735; Charles Sabel and Jonathan Zeitlin, "Historical Alternatives to Mass Production: Politics, Markets and Technology in Nineteenth-Century Industrialization," Past and Present 108 (1985): 133-76. See especially the balanced overview by Richard R. John, "Elaborations, Revisions, Dissents: Alfred D. Chandler Jr.'s The Visible Hand After Twenty Years," Business History Review 71 (1997): 151-200.
7. Alfred D. Chandler, Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, 1977), 377-500; Richard B. Du Boff, and Edward S. Herman, "Alfred Chandler's New Business History: A Review," Politics and Society 10 (1980): 87-110; Leslie Hannah, "Scale and Scope: Towards a European Visible Hand?" Business History 33 (1991): 297-309; Barry Supple, "Scale and Scope: Alfred Chandler and the Dynamics of Industrial Capitalism," Economic History Review 54 (1991): 500-14; Steven Tolliday, ed., "Scale and Scope: A Review Colloquium," Business History Review 64 (1990): 690-735; Charles Sabel and Jonathan Zeitlin, "Historical Alternatives to Mass Production: Politics, Markets and Technology in Nineteenth-Century Industrialization," Past and Present 108 (1985): 133-76. See especially the balanced overview by Richard R. John, "Elaborations, Revisions, Dissents: Alfred D. Chandler Jr.'s The Visible Hand After Twenty Years," Business History Review 71 (1997): 151-200.
8. Daniel Bell, The Cultural Contradictions of Capitalism (New York, 1976), 3-30. See also Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York, 1995).
9. Daniel Bell, The Cultural Contradictions of Capitalism (New York, 1976), 3-30. See also Francis Fukuyama, Trust: The Social Virtues and the Creation of Prosperity (New York, 1995).
10. Canada Year Book (Ottawa, 1930), 951-4; (Ottawa, 1935), 1033-5.
11. Canada Year Book (Ottawa, 1930), 951-4; (Ottawa, 1935), 1033-5.
12. The best study of contemporary failures is Frank Clarke, Graeme Dean, and Kyle Oliver, Corporate Collapse: Regulatory, Accounting and Ethical Failure (Cambridge, 1997). Other useful works include: H. Thomas Johnson and Robert S. Kaplan, Relevance Lost: The Rise and Fall of Management Accounting (Boston, 1987); David F. Hawkins, "The Development of Modern Financial Reporting Practices Among American Manufacturing Companies," Business History Review 37 (1963): 135-68; Richard P. Brief, ed., Corporate Financial Reporting and Analysis in the Early 1900s (New York, 1986); Paul J. Miranti, Accountancy Comes of Age: The Development of an American Profession, 1886-1940 (Chapel Hill, 1990); John R. Edwards, "Company Legislation and Changing Patterns of Disclosure in British Company Accounts, 1900-1940"; John R. Edwards, ed., Studies of Company Records, 1830-1940 (New York, 1984), 71-155.
13. The best study of contemporary failures is Frank Clarke, Graeme Dean, and Kyle Oliver, Corporate Collapse: Regulatory, Accounting and Ethical Failure (Cambridge, 1997). Other useful works include: H. Thomas Johnson and Robert S. Kaplan, Relevance Lost: The Rise and Fall of Management Accounting (Boston, 1987); David F. Hawkins, "The Development of Modern Financial Reporting Practices Among American Manufacturing Companies," Business History Review 37 (1963): 135-68; Richard P. Brief, ed., Corporate Financial Reporting and Analysis in the Early 1900s (New York, 1986); Paul J. Miranti, Accountancy Comes of Age: The Development of an American Profession, 1886-1940 (Chapel Hill, 1990); John R. Edwards, "Company Legislation and Changing Patterns of Disclosure in British Company Accounts, 1900-1940"; John R. Edwards, ed., Studies of Company Records, 1830-1940 (New York, 1984), 71-155.
14. The best study of contemporary failures is Frank Clarke, Graeme Dean, and Kyle Oliver, Corporate Collapse: Regulatory, Accounting and Ethical Failure (Cambridge, 1997). Other useful works include: H. Thomas Johnson and Robert S. Kaplan, Relevance Lost: The Rise and Fall of Management Accounting (Boston, 1987); David F. Hawkins, "The Development of Modern Financial Reporting Practices Among American Manufacturing Companies," Business History Review 37 (1963): 135-68; Richard P. Brief, ed., Corporate Financial Reporting and Analysis in the Early 1900s (New York, 1986); Paul J. Miranti, Accountancy Comes of Age: The Development of an American Profession, 1886-1940 (Chapel Hill, 1990); John R. Edwards, "Company Legislation and Changing Patterns of Disclosure in British Company Accounts, 1900-1940"; John R. Edwards, ed., Studies of Company Records, 1830-1940 (New York, 1984), 71-155.
15. The best study of contemporary failures is Frank Clarke, Graeme Dean, and Kyle Oliver, Corporate Collapse: Regulatory, Accounting and Ethical Failure (Cambridge, 1997). Other useful works include: H. Thomas Johnson and Robert S. Kaplan, Relevance Lost: The Rise and Fall of Management Accounting (Boston, 1987); David F. Hawkins, "The Development of Modern Financial Reporting Practices Among American Manufacturing Companies," Business History Review 37 (1963): 135-68; Richard P. Brief, ed., Corporate Financial Reporting and Analysis in the Early 1900s (New York, 1986); Paul J. Miranti, Accountancy Comes of Age: The Development of an American Profession, 1886-1940 (Chapel Hill, 1990); John R. Edwards, "Company Legislation and Changing Patterns of Disclosure in British Company Accounts, 1900-1940"; John R. Edwards, ed., Studies of Company Records, 1830-1940 (New York, 1984), 71-155.
16. The best study of contemporary failures is Frank Clarke, Graeme Dean, and Kyle Oliver, Corporate Collapse: Regulatory, Accounting and Ethical Failure (Cambridge, 1997). Other useful works include: H. Thomas Johnson and Robert S. Kaplan, Relevance Lost: The Rise and Fall of Management Accounting (Boston, 1987); David F. Hawkins, "The Development of Modern Financial Reporting Practices Among American Manufacturing Companies," Business History Review 37 (1963): 135-68; Richard P. Brief, ed., Corporate Financial Reporting and Analysis in the Early 1900s (New York, 1986); Paul J. Miranti, Accountancy Comes of Age: The Development of an American Profession, 1886-1940 (Chapel Hill, 1990); John R. Edwards, "Company Legislation and Changing Patterns of Disclosure in British Company Accounts, 1900-1940"; John R. Edwards, ed., Studies of Company Records, 1830-1940 (New York, 1984), 71-155.
17. The best study of contemporary failures is Frank Clarke, Graeme Dean, and Kyle Oliver, Corporate Collapse: Regulatory, Accounting and Ethical Failure (Cambridge, 1997). Other useful works include: H. Thomas Johnson and Robert S. Kaplan, Relevance Lost: The Rise and Fall of Management Accounting (Boston, 1987); David F. Hawkins, "The Development of Modern Financial Reporting Practices Among American Manufacturing Companies," Business History Review 37 (1963): 135-68; Richard P. Brief, ed., Corporate Financial Reporting and Analysis in the Early 1900s (New York, 1986); Paul J. Miranti, Accountancy Comes of Age: The Development of an American Profession, 1886-1940 (Chapel Hill, 1990); John R. Edwards, "Company Legislation and Changing Patterns of Disclosure in British Company Accounts, 1900-1940"; John R. Edwards, ed., Studies of Company Records, 1830-1940 (New York, 1984), 71-155.
18. The best study of contemporary failures is Frank Clarke, Graeme Dean, and Kyle Oliver, Corporate Collapse: Regulatory, Accounting and Ethical Failure (Cambridge, 1997). Other useful works include: H. Thomas Johnson and Robert S. Kaplan, Relevance Lost: The Rise and Fall of Management Accounting (Boston, 1987); David F. Hawkins, "The Development of Modern Financial Reporting Practices Among American Manufacturing Companies," Business History Review 37 (1963): 135-68; Richard P. Brief, ed., Corporate Financial Reporting and Analysis in the Early 1900s (New York, 1986); Paul J. Miranti, Accountancy Comes of Age: The Development of an American Profession, 1886-1940 (Chapel Hill, 1990); John R. Edwards, "Company Legislation and Changing Patterns of Disclosure in British Company Accounts, 1900-1940"; John R. Edwards, ed., Studies of Company Records, 1830-1940 (New York, 1984), 71-155.
19. Robert S. McElvaine, The Great Depression: America, 1929-1941 (New York, 1993), 25-50, 138-69; Thomas K. McCraw, Prophets of Regulation: Charles Francis Adams, Louis D. Brandeis, James M. Landis, Alfred E. Kahn (Cambridge, 1984), 149-203; Vincent P. Carosso, Investment Banking in America: A History (Cambridge, 1970). Popular images of financial practices during the "Roaring 20s" are well captured in the following: Frederick L. Allen, The Lords of Creation (New York, 1935); Max Lowenthal, The Investor Pays (New York, 1933); John K. Galbraith, The Great Crash: 1929 (Boston, 1954); and Cedric B. Cowing, Populists, Plungers and Progressives: A Social History of Stock and Commodity Speculation, 1890-1936 (Princeton, 1965).
20. Robert S. McElvaine, The Great Depression: America, 1929-1941 (New York, 1993), 25-50, 138-69; Thomas K. McCraw, Prophets of Regulation: Charles Francis Adams, Louis D. Brandeis, James M. Landis, Alfred E. Kahn (Cambridge, 1984), 149-203; Vincent P. Carosso, Investment Banking in America: A History (Cambridge, 1970). Popular images of financial practices during the "Roaring 20s" are well captured in the following: Frederick L. Allen, The Lords of Creation (New York, 1935); Max Lowenthal, The Investor Pays (New York, 1933); John K. Galbraith, The Great Crash: 1929 (Boston, 1954); and Cedric B. Cowing, Populists, Plungers and Progressives: A Social History of Stock and Commodity Speculation, 1890-1936 (Princeton, 1965).
21. Robert S. McElvaine, The Great Depression: America, 1929-1941 (New York, 1993), 25-50, 138-69; Thomas K. McCraw, Prophets of Regulation: Charles Francis Adams, Louis D. Brandeis, James M. Landis, Alfred E. Kahn (Cambridge, 1984), 149-203; Vincent P. Carosso, Investment Banking in America: A History (Cambridge, 1970). Popular images of financial practices during the "Roaring 20s" are well captured in the following: Frederick L. Allen, The Lords of Creation (New York, 1935); Max Lowenthal, The Investor Pays (New York, 1933); John K. Galbraith, The Great Crash: 1929 (Boston, 1954); and Cedric B. Cowing, Populists, Plungers and Progressives: A Social History of Stock and Commodity Speculation, 1890-1936 (Princeton, 1965).
22. Robert S. McElvaine, The Great Depression: America, 1929-1941 (New York, 1993), 25-50, 138-69; Thomas K. McCraw, Prophets of Regulation: Charles Francis Adams, Louis D. Brandeis, James M. Landis, Alfred E. Kahn (Cambridge, 1984), 149-203; Vincent P. Carosso, Investment Banking in America: A History (Cambridge, 1970). Popular images of financial practices during the "Roaring 20s" are well captured in the following: Frederick L. Allen, The Lords of Creation (New York, 1935); Max Lowenthal, The Investor Pays (New York, 1933); John K. Galbraith, The Great Crash: 1929 (Boston, 1954); and Cedric B. Cowing, Populists, Plungers and Progressives: A Social History of Stock and Commodity Speculation, 1890-1936 (Princeton, 1965).
23. Robert S. McElvaine, The Great Depression: America, 1929-1941 (New York, 1993), 25-50, 138-69; Thomas K. McCraw, Prophets of Regulation: Charles Francis Adams, Louis D. Brandeis, James M. Landis, Alfred E. Kahn (Cambridge, 1984), 149-203; Vincent P. Carosso, Investment Banking in America: A History (Cambridge, 1970). Popular images of financial practices during the "Roaring 20s" are well captured in the following: Frederick L. Allen, The Lords of Creation (New York, 1935); Max Lowenthal, The Investor Pays (New York, 1933); John K. Galbraith, The Great Crash: 1929 (Boston, 1954); and Cedric B. Cowing, Populists, Plungers and Progressives: A Social History of Stock and Commodity Speculation, 1890-1936 (Princeton, 1965).
24. Robert S. McElvaine, The Great Depression: America, 1929-1941 (New York, 1993), 25-50, 138-69; Thomas K. McCraw, Prophets of Regulation: Charles Francis Adams, Louis D. Brandeis, James M. Landis, Alfred E. Kahn (Cambridge, 1984), 149-203; Vincent P. Carosso, Investment Banking in America: A History (Cambridge, 1970). Popular images of financial practices during the "Roaring 20s" are well captured in the following: Frederick L. Allen, The Lords of Creation (New York, 1935); Max Lowenthal, The Investor Pays (New York, 1933); John K. Galbraith, The Great Crash: 1929 (Boston, 1954); and Cedric B. Cowing, Populists, Plungers and Progressives: A Social History of Stock and Commodity Speculation, 1890-1936 (Princeton, 1965).
25. Robert S. McElvaine, The Great Depression: America, 1929-1941 (New York, 1993), 25-50, 138-69; Thomas K. McCraw, Prophets of Regulation: Charles Francis Adams, Louis D. Brandeis, James M. Landis, Alfred E. Kahn (Cambridge, 1984), 149-203; Vincent P. Carosso, Investment Banking in America: A History (Cambridge, 1970). Popular images of financial practices during the "Roaring 20s" are well captured in the following: Frederick L. Allen, The Lords of Creation (New York, 1935); Max Lowenthal, The Investor Pays (New York, 1933); John K. Galbraith, The Great Crash: 1929 (Boston, 1954); and Cedric B. Cowing, Populists, Plungers and Progressives: A Social History of Stock and Commodity Speculation, 1890-1936 (Princeton, 1965).
26. Most commentaries rely upon Eugene Forsey, "The Pulp and Paper Industry," Canadian Journal of Economics and Political Science 1 (1935): 501-9.
27. H. V. Nelles, The Politics of Development: Forests, Mines and Hydro-Electric Power in Ontario, 1849-1941 (Toronto, 1974);
28. Gilles Piédalue, "Les Groupes Financiers au Canada 1900-1930," Revue d'Histoire de l'Amérique Française 30 (1976): 3-34,
29. and Gilles Piédalue, "Les Groupes Financiers et la Guerre du Papier au Canada, 1920-1930," Revue d'Histoire de l'Amérique Française 30 (1976): 223-53.
30. Christopher Armstrong, Blue Skies and Boiler Rooms: Buying and Selling Securities in Canada, 1880-1940 (Toronto, 1997).
31. David C. Smith, "Wood Pulp and Newspapers, 1867-1900," Business History Review 38 (1964): 328-45; Judith A. McGaw, Most Wonderful Machine: Mechanization and Social Change in Berkshire Paper Making, 1801-1885 (Princeton, 1987), ch. 7.
32. David C. Smith, "Wood Pulp and Newspapers, 1867-1900," Business History Review 38 (1964): 328-45; Judith A. McGaw, Most Wonderful Machine: Mechanization and Social Change in Berkshire Paper Making, 1801-1885 (Princeton, 1987), ch. 7.
33. A. J. Cohen, "Technological Change as Historical Process: The Case of the U.S. Pulp and Paper Industry, 1915-1940," Journal of Economic History 44 (1989): 779;
34. Naomi R. Lamoreaux, The Great Merger Movement in American Business, 1895-1904 (Cambridge, 1985), 43-5, 139-41.
35. See also Richard E. Caves, M. Fortunato, and P. Ghemawat, "The Decline of Dominant Firms, 190,5-1929," Quarterly Journal of Economics 99 (1984): 523-7.
36. Jorge Niosi, "La Laurentide (1887-1928): Pionnière du Papier Journal Au Canada," Revue d'Histoire de l'Amérique Française 29 (1975): 375-415; Jean-Pierre Charland, Pâtes et papiers au Québec, 1880-1980: technologies, travail et travailleurs (Québec, 1990), 95-140.
37. Jorge Niosi, "La Laurentide (1887-1928): Pionnière du Papier Journal Au Canada," Revue d'Histoire de l'Amérique Française 29 (1975): 375-415; Jean-Pierre Charland, Pâtes et papiers au Québec, 1880-1980: technologies, travail et travailleurs (Québec, 1990), 95-140.
38. PPMC, 2 Feb. 1927, 187; Nelles, The Politics of Development, 48-107; Royal S. Kellogg, Pulpwood and Woodpulp in North America (New York, 1923), 224-32.
39. PPMC, 2 Feb. 1927, 187; Nelles, The Politics of Development, 48-107; Royal S. Kellogg, Pulpwood and Woodpulp in North America (New York, 1923), 224-32.
40. PPMC, 2 Feb. 1927, 187; Nelles, The Politics of Development, 48-107; Royal S. Kellogg, Pulpwood and Woodpulp in North America (New York, 1923), 224-32.
41. Trevor J. O. Dick, "Canadian Newsprint, 1913-1930: National Policies and the North American Economy," Journal of Economic History 42 (1982): 661-5; Canadian Pulp and Paper Association, Reference Tables (Montreal, 1954), table 67: 54. See also U.S. Tariff Commission, Tariff Information (Washington, D.C., 1923), 33-6. The agency placed the Canadian cost advantage at $3.10 to $5.35 per ton between 1913 and 1916, owing to cheaper pulp and low-cost wood.
42. Trevor J. O. Dick, "Canadian Newsprint, 1913-1930: National Policies and the North American Economy," Journal of Economic History 42 (1982): 661-5; Canadian Pulp and Paper Association, Reference Tables (Montreal, 1954), table 67: 54. See also U.S. Tariff Commission, Tariff Information (Washington, D.C., 1923), 33-6. The agency placed the Canadian cost advantage at $3.10 to $5.35 per ton between 1913 and 1916, owing to cheaper pulp and low-cost wood.
43. Trevor J. O. Dick, "Canadian Newsprint, 1913-1930: National Policies and the North American Economy," Journal of Economic History 42 (1982): 661-5; Canadian Pulp and Paper Association, Reference Tables (Montreal, 1954), table 67: 54. See also U.S. Tariff Commission, Tariff Information (Washington, D.C., 1923), 33-6. The agency placed the Canadian cost advantage at $3.10 to $5.35 per ton between 1913 and 1916, owing to cheaper pulp and low-cost wood.
44. Statistics Canada, Historical Statistics of Canada, 2nd ed. (Ottawa, 1983), series F334-4, F342-8, G188-202.
45. Barry E. C. Boothman, "The Foundations of Canadian Big Business," Fifth Canadian Business History Conference (1998).
46. PPMC, 4 August 1921, 816. Discussions of the Riordan failure and the implications were extensive in newspapers from 1921 to 1925. Observers tended to blame Izaak W. Killam and Royal Securities for floating the Riordan securities and then refusing to make concessions to creditors.
47. John A. Guthrie, The Newsprint Paper Industry: An Economic Analysis (Boston, 1941), 59-60; Herbert Marshall, Frank A. Southard, and Kenneth W. Taylor, Canadian-American Industry (Boston, 1936), 41-4; William Parenteau, "The Woods Transformed: The Emergence of the Pulp and Paper Industry in New Brunswick," Acadiensis 22 (1992): 22-31; J. Millier, "The Politics of Newsprint: The Newfoundland Newsprint Industry, 1915-39," Acadiensis 19 (1990): 3-39.
48. John A. Guthrie, The Newsprint Paper Industry: An Economic Analysis (Boston, 1941), 59-60; Herbert Marshall, Frank A. Southard, and Kenneth W. Taylor, Canadian-American Industry (Boston, 1936), 41-4; William Parenteau, "The Woods Transformed: The Emergence of the Pulp and Paper Industry in New Brunswick," Acadiensis 22 (1992): 22-31; J. Millier, "The Politics of Newsprint: The Newfoundland Newsprint Industry, 1915-39," Acadiensis 19 (1990): 3-39.
49. John A. Guthrie, The Newsprint Paper Industry: An Economic Analysis (Boston, 1941), 59-60; Herbert Marshall, Frank A. Southard, and Kenneth W. Taylor, Canadian-American Industry (Boston, 1936), 41-4; William Parenteau, "The Woods Transformed: The Emergence of the Pulp and Paper Industry in New Brunswick," Acadiensis 22 (1992): 22-31; J. Millier, "The Politics of Newsprint: The Newfoundland Newsprint Industry, 1915-39," Acadiensis 19 (1990): 3-39.
50. John A. Guthrie, The Newsprint Paper Industry: An Economic Analysis (Boston, 1941), 59-60; Herbert Marshall, Frank A. Southard, and Kenneth W. Taylor, Canadian-American Industry (Boston, 1936), 41-4; William Parenteau, "The Woods Transformed: The Emergence of the Pulp and Paper Industry in New Brunswick," Acadiensis 22 (1992): 22-31; J. Millier, "The Politics of Newsprint: The Newfoundland Newsprint Industry, 1915-39," Acadiensis 19 (1990): 3-39.
51. Most authors have related the overexpansion to American demand, and the impact of technological imperatives upon corporate strategies has been largely ignored. Reviews of mills or the introduction of new machinery were featured items in Pulp and Paper Magazine of Canada from 1921 to 1931. See also Louis T. Stevenson, The Background and Economics of American Papermaking (New York, 1940).
52. Most authors have related the overexpansion to American demand, and the impact of technological imperatives upon corporate strategies has been largely ignored. Reviews of mills or the introduction of new machinery were featured items in Pulp and Paper Magazine of Canada from 1921 to 1931. See also Louis T. Stevenson, The Background and Economics of American Papermaking (New York, 1940).
53. Guthrie, The Newsprint Paper Industry, 116-26.
54. This narrative is drawn from my essay "Night of the Longest Day: The Receivership of Abitibi Power and Paper," in Barry E. C. Boothman, ed., ASAC Proceedings: Business History 14, 15 (1994): 22-32.
55. Christopher Armstrong and H. V. Nelles, Monopoly's Moment: The Organization and Regulation of Canadian Utilities (Toronto, 1988), 101-6, 297-9; Duncan McDowall, Quick to the Frontier: Canada's Royal Bank (Toronto, 1993), 82, 239-43.
56. Christopher Armstrong and H. V. Nelles, Monopoly's Moment: The Organization and Regulation of Canadian Utilities (Toronto, 1988), 101-6, 297-9; Duncan McDowall, Quick to the Frontier: Canada's Royal Bank (Toronto, 1993), 82, 239-43.
57. ANQ-M, Consolidated Bathurst papers, minute books of directors' meetings, M-8-6, 25 Nov. 1925, 43-6; M-9-7, 9 Dec. 1925, 51.
58. Proceedings of the Select Standing Committee of the House of Commons on Banking and Commerce, 22 May 1934, 826.
59. Piédalue, "Guerre de Papier," 240; UTA, T79-0086, Robert N. McEachern, "Corporate Reorganizations," M.A. thesis (University of Toronto, 1934), 4; UTA T79-0083, Hubert C. Dell, "A Financial Analysis of Some Recent Consolidations in the Pulp and Paper Industry," M.A. thesis (University of Toronto, 1934), 102.
60. Piédalue, "Guerre de Papier," 240; UTA, T79-0086, Robert N. McEachern, "Corporate Reorganizations," M.A. thesis (University of Toronto, 1934), 4; UTA T79-0083, Hubert C. Dell, "A Financial Analysis of Some Recent Consolidations in the Pulp and Paper Industry," M.A. thesis (University of Toronto, 1934), 102.
61. Piédalue, "Guerre de Papier," 240; UTA, T79-0086, Robert N. McEachern, "Corporate Reorganizations," M.A. thesis (University of Toronto, 1934), 4; UTA T79-0083, Hubert C. Dell, "A Financial Analysis of Some Recent Consolidations in the Pulp and Paper Industry," M.A. thesis (University of Toronto, 1934), 102.
62. The narrative about Backus-Brooks is derived from numerous sources, especially: AO, F9, MU 1353, env. 1, circular, E. W. Backus to Minnesota and Ontario Bondholders, 5 Jan. 1934; RG 49-19, 1922, no. 76, "English River/Backus Correspondence" RG 49-19, 1925, no. 65, "Great Lakes Paper Correspondence."
63. The narrative about Backus-Brooks is derived from numerous sources, especially: AO, F9, MU 1353, env. 1, circular, E. W. Backus to Minnesota and Ontario Bondholders, 5 Jan. 1934; RG 49-19, 1922, no. 76, "English River/Backus Correspondence" RG 49-19, 1925, no. 65, "Great Lakes Paper Correspondence."
64. PPMC, Dec. 1912, 370.
65. PPMC, 25 May 1922, 424.
66. PPMC, 4 Jan. 1917, 1.
67. Extrapolated by the author from annual data published in Government of Canada, Report of the Superintendent of Insurance of the Dominion of Canada: Life Insurance Companies, 1901-1931.
68. Government of Canada, Report of the Superintendent of Insurance, 1923 (Ottawa, 1924), 4-7.
69. The exception to the trend was London Life, which expanded heavily into mortgages for urban real estate and only undertook significant newsprint investments just prior to the Wall Street crash. London Life Archives, James Campbell et al., A History of London Life Insurance (unpublished typescript) 388-447.
70. 1926 address to Sun Life sales agents, quoted in George H. Harris, The President's Book: The Story of the Sun Life Assurance Company of Canada (Montreal, 1928), 194.
71. Harris, The President's Book, 193, 196; Joseph Schull, The Century of the Sun: The First Hundred Years of the Sun Life Assurance Company of Canada (Toronto, 1971), 58. MCLA, 81.22.152, Bond Department, "A History of the Investments of Mutual Life Assurance of Canada in Pulp and Paper Company Securities," 23 May 1933. The company's official history minimized the selection of poor investment vehicles, noting merely that "it appears that this type of investment was given too much emphasis for many of these corporation bonds, especially those of pulp and paper companies, fell into default in the thirties." See Mutual Life Assurance of Canada, A Century of Mutuality (Waterloo, 1970), 65.
72. Harris, The President's Book, 193, 196; Joseph Schull, The Century of the Sun: The First Hundred Years of the Sun Life Assurance Company of Canada (Toronto, 1971), 58. MCLA, 81.22.152, Bond Department, "A History of the Investments of Mutual Life Assurance of Canada in Pulp and Paper Company Securities," 23 May 1933. The company's official history minimized the selection of poor investment vehicles, noting merely that "it appears that this type of investment was given too much emphasis for many of these corporation bonds, especially those of pulp and paper companies, fell into default in the thirties." See Mutual Life Assurance of Canada, A Century of Mutuality (Waterloo, 1970), 65.
73. Harris, The President's Book, 193, 196; Joseph Schull, The Century of the Sun: The First Hundred Years of the Sun Life Assurance Company of Canada (Toronto, 1971), 58. MCLA, 81.22.152, Bond Department, "A History of the Investments of Mutual Life Assurance of Canada in Pulp and Paper Company Securities," 23 May 1933. The company's official history minimized the selection of poor investment vehicles, noting merely that "it appears that this type of investment was given too much emphasis for many of these corporation bonds, especially those of pulp and paper companies, fell into default in the thirties." See Mutual Life Assurance of Canada, A Century of Mutuality (Waterloo, 1970), 65.
74. Harris, The President's Book, 193, 196; Joseph Schull, The Century of the Sun: The First Hundred Years of the Sun Life Assurance Company of Canada (Toronto, 1971), 58. MCLA, 81.22.152, Bond Department, "A History of the Investments of Mutual Life Assurance of Canada in Pulp and Paper Company Securities," 23 May 1933. The company's official history minimized the selection of poor investment vehicles, noting merely that "it appears that this type of investment was given too much emphasis for many of these corporation bonds, especially those of pulp and paper companies, fell into default in the thirties." See Mutual Life Assurance of Canada, A Century of Mutuality (Waterloo, 1970), 65.
75. Financial Times, quoted in PPMC, 13 Dec. 1928, 1785; Macleons, 15 Oct. 1928.
76. Financial Times, quoted in PPMC, 13 Dec. 1928, 1785; Macleons, 15 Oct. 1928.
77. Canadian practices with respect to treatment of common stock closely paralleled those in the United States where the use of arbitrarily low par values emerged after 1918. See Benjamin Graham and David L. Dodd, Security Analysis, 2nd ed. (New York, 1940), 379.
78. Dominion Bureau of Statistics, Historical Summaries of Consolidations in Canadian Industries (Ottawa, 1934).
79. Forsey, "The Pulp and Paper Industry," 503-6. Guthrie, The Newsprint Paper Industry, ch. 5.
80. Forsey, "The Pulp and Paper Industry," 503-6. Guthrie, The Newsprint Paper Industry, ch. 5.
81. MCLA, 81.23.161, In the Matter of Abitibi Power and Paper Company, Limited, Compilation of Statements and Information Obtained by the Bondholders Representative Committee, Dated Toronto, Ontario, 21 July 1937 [hereafter CSI], Exhibit A-1.
82. Robert Sobel, The Great Bull Market: Wall Street in the 1920s (New York, 1968), 88-95.
83. Armstrong, Blue Skies and Boiler Rooms, 28-32. For the best summary of the Canadian treatment of disclosure, see Frank Weganast, The Law of Canadian Companies (Toronto, 1930), chs. 26 and 29-30.
84. Armstrong, Blue Skies and Boiler Rooms, 28-32. For the best summary of the Canadian treatment of disclosure, see Frank Weganast, The Law of Canadian Companies (Toronto, 1930), chs. 26 and 29-30.
85. Quoted in John T. Saywell, "F. H. Deacon and Co., Investment Dealers: A Case Study of the Securities Industry, 1897-1945," Ontario History 85 (1993): 175.
86. Re London and General Bank, Law Times, 106 (1912), 285.
87. Spackman v. Evans, [1868] L.R., 3 H.L. 171, 193; 37 L.J. ch. 752.
88. Re Kingston Cotton Milk Co., [1896] 2 ch. 279 at 688; 65 L.J. ch. 673.
89. Re London and General Bank, [1895] 2 ch. 682; 64 L.J. ch. 866. See also Henry Squire (Cash Chemist) Ltd v. Ball, Baker & Co., [1911] 27 T.L.R. 269 aff'd 28 T.L.R. 81, 106 Law Times 197.
90. Re London and General Bank, [1895] 2 ch. 685; 64 L.J. ch. 866.
91. Re Owen Sound Lumber Co., O.L.R., [1917] 28, 424 and D.L.H. [1917] 33, 486. Weganast, The Law of Canadian Companies, 812-3. Victor Mitchell, Canadian Commercial Corporations (Montreal, 1916), 1139-45.
92. Re Owen Sound Lumber Co., O.L.R., [1917] 28, 424 and D.L.H. [1917] 33, 486. Weganast, The Law of Canadian Companies, 812-3. Victor Mitchell, Canadian Commercial Corporations (Montreal, 1916), 1139-45.
93. The best presentation of the proprietary theory can be found in Charles B. Couchman, The Balance-Sheet: Its Preparation, Content and Interpretation (New York, 1924). The entity theory was summarized by William A. Paton, Accounting Theory (New York, 1922). Useful reviews can be found in: M. Chatfield, A History of Accounting Thought (Hinsdale, Ill., 1974), 220-5; Gary J. Previts and Barbara D. Merino, A History of Accounting in America: An Historical Interpretation of the Cultural Significance of Accounting (New York, 1979), 169-180, 220-0.
94. The best presentation of the proprietary theory can be found in Charles B. Couchman, The Balance-Sheet: Its Preparation, Content and Interpretation (New York, 1924). The entity theory was summarized by William A. Paton, Accounting Theory (New York, 1922). Useful reviews can be found in: M. Chatfield, A History of Accounting Thought (Hinsdale, Ill., 1974), 220-5; Gary J. Previts and Barbara D. Merino, A History of Accounting in America: An Historical Interpretation of the Cultural Significance of Accounting (New York, 1979), 169-180, 220-0.
95. The best presentation of the proprietary theory can be found in Charles B. Couchman, The Balance-Sheet: Its Preparation, Content and Interpretation (New York, 1924). The entity theory was summarized by William A. Paton, Accounting Theory (New York, 1922). Useful reviews can be found in: M. Chatfield, A History of Accounting Thought (Hinsdale, Ill., 1974), 220-5; Gary J. Previts and Barbara D. Merino, A History of Accounting in America: An Historical Interpretation of the Cultural Significance of Accounting (New York, 1979), 169-180, 220-0.
96. The best presentation of the proprietary theory can be found in Charles B. Couchman, The Balance-Sheet: Its Preparation, Content and Interpretation (New York, 1924). The entity theory was summarized by William A. Paton, Accounting Theory (New York, 1922). Useful reviews can be found in: M. Chatfield, A History of Accounting Thought (Hinsdale, Ill., 1974), 220-5; Gary J. Previts and Barbara D. Merino, A History of Accounting in America: An Historical Interpretation of the Cultural Significance of Accounting (New York, 1979), 169-180, 220-0.
97. See Harry A. Finney, Consolidated Statements for Holding Companies (New York, 1923), and William H. Childs, Consolidated Statements: Principles and Procedures (Ithaca, 1949).
98. See Harry A. Finney, Consolidated Statements for Holding Companies (New York, 1923), and William H. Childs, Consolidated Statements: Principles and Procedures (Ithaca, 1949).
99. Robert G. Walker, Consolidated Statements: A History and Analysis (New York, 1978), 77, 353.
100. Kierskowski v. Grand Trunk Railway, [1859] 10 L.C.R., 47; Mitchell, Canadian Commercial Corporations, 1377.
101. See Finney, Consolidated Statements for Holding Companies, chs. 2-3.
102. Reginald G. H. Smails, Accounting Principles (Toronto, 1948), 343.
103. Committee on Accounting Procedure, Accounting Research Bulletin no. 40 (New York, 1950).
104. Journal of Commerce, quoted in PPMC, 4 Jan. 1917, 1.
105. AO, RG3, 06-0-1173, circular letters of Izaak W. Killam, 20 June 1925, 23 Feb. 1926; Duncan Chisholm to Howard Ferguson, 15 April 1926; RG3, 06-0-615, Howard Ferguson to Charles Dix, 1 April 1925.
106. AO, RG22-5800, 1339/21, National Trust v. Mattagami. This summary is based upon the surviving affidavits, financial statements, and orders in the court version of the file.
107. Annual Financial Review (1928), 119. MCLA, 81.23.161, CSI, J-4.
108. Annual Financial Review (1928), 119. MCLA, 81.23.161, CSI, J-4.
109. MCLA, 81.20.161, CSI, J7-J11, J24.
110. Quoted in Mead Corporation, In Quiet Ways: George H. Mead, the Man and the Company (Dayton, Ohio, 1970), 111.
111. Proceedings of the Select Standing Committee on Banking, 22 May 1934, 862, 879.
112. Proceedings of the Select Committee, 815-6, 826, 864, 873.
113. Richard S. Lambert and Paul Pross, Renewing Nature's Wealth: A Centennial History of the Public Management of Lands, Forests and Wildlife in Ontario, 1763-1967 (Toronto, 1967), 390-423.
114. The key rulings were Ammonia Soda Co. v. Chamberlain, [1918] 1 ch. 266, 286; and Dovey v. Cory, [1902] A.C., 477. The best discussions of the confusion can be found in Mitchell, Canadian Corporations, 670-98; Wegenast, Canadian Companies, 611-7.
115. The key rulings were Ammonia Soda Co. v. Chamberlain, [1918] 1 ch. 266, 286; and Dovey v. Cory, [1902] A.C., 477. The best discussions of the confusion can be found in Mitchell, Canadian Corporations, 670-98; Wegenast, Canadian Companies, 611-7.
116. The key rulings were Ammonia Soda Co. v. Chamberlain, [1918] 1 ch. 266, 286; and Dovey v. Cory, [1902] A.C., 477. The best discussions of the confusion can be found in Mitchell, Canadian Corporations, 670-98; Wegenast, Canadian Companies, 611-7.
117. Pulp and Paper Association of Canada, Newsprint Data (Montreal, 1948), 16-21.
118. Maurice Leven, Harold G. Moulton, and Clark Warburton, America's Capacity to Consume (Washington, 1934), 54-6, 93-4, 103-4; Simon Kuznets, National Income: A Summary of Findings (New York, 1946), 97-106; Galbraith, The Great Crash, 180-4. See also Albert U. Romasco, The Poverty of Abundance: Hoover, the Nation, the Depression (New York, 1965).
119. Maurice Leven, Harold G. Moulton, and Clark Warburton, America's Capacity to Consume (Washington, 1934), 54-6, 93-4, 103-4; Simon Kuznets, National Income: A Summary of Findings (New York, 1946), 97-106; Galbraith, The Great Crash, 180-4. See also Albert U. Romasco, The Poverty of Abundance: Hoover, the Nation, the Depression (New York, 1965).
120. Maurice Leven, Harold G. Moulton, and Clark Warburton, America's Capacity to Consume (Washington, 1934), 54-6, 93-4, 103-4; Simon Kuznets, National Income: A Summary of Findings (New York, 1946), 97-106; Galbraith, The Great Crash, 180-4. See also Albert U. Romasco, The Poverty of Abundance: Hoover, the Nation, the Depression (New York, 1965).
121. Maurice Leven, Harold G. Moulton, and Clark Warburton, America's Capacity to Consume (Washington, 1934), 54-6, 93-4, 103-4; Simon Kuznets, National Income: A Summary of Findings (New York, 1946), 97-106; Galbraith, The Great Crash, 180-4. See also Albert U. Romasco, The Poverty of Abundance: Hoover, the Nation, the Depression (New York, 1965).
122. Globe, 4 June 1931; Financial Post Survey of Corporate Securities (1932), 215; FP, 1 Aug. 1936.
123. Globe, 4 June 1931; Financial Post Survey of Corporate Securities (1932), 215; FP, 1 Aug. 1936.
124. Globe, 4 June 1931; Financial Post Survey of Corporate Securities (1932), 215; FP, 1 Aug. 1936.
125. FP, 14 July 1934, 2 May 1936, 6 March 1937; Barron's (31 May 1937), 17.
126. FP, 14 July 1934, 2 May 1936, 6 March 1937; Barron's (31 May 1937), 17.
127. AO, RG 22-5800, 2194/31, National Trust v. Great Lakes Paper, first and interim report of receiver, 30 July 1931; 11 Aug. 1931, cross-examination of Frederick R. MacKelcan, 19 Dec. 1935, 5-25; F9, MU 1353, env. 1, circular letter.
128. AO, RG 22-5800, 2194/31, cross-examination of MacKelcan, 2-50; affidavit of F. R. MacKelcan and order, 25 June 1936.
129. AO, RG3, boxes 260, 278, and 299 contain the extensive correspondence about the Great Lakes Paper arrangement and the renegotiations.
130. Boothman, "Night of the Longest Day," 26-31.
131. Arthur R. M. Lower, Settlement and the Forest Frontier (Toronto, 1936), 127.
132. William Z. Ripley, Main Street and Wall Street (Boston, 1927), 194-207, 222-55; Jonathan B. Baskin and Paul Miranti, A History of Corporate Finance (New York, 1997), 197-204; George Soule, Prosperity Decade: From War to Depression, 1917-1929 (New York, 1947), 298-304.
133. William Z. Ripley, Main Street and Wall Street (Boston, 1927), 194-207, 222-55; Jonathan B. Baskin and Paul Miranti, A History of Corporate Finance (New York, 1997), 197-204; George Soule, Prosperity Decade: From War to Depression, 1917-1929 (New York, 1947), 298-304.
134. William Z. Ripley, Main Street and Wall Street (Boston, 1927), 194-207, 222-55; Jonathan B. Baskin and Paul Miranti, A History of Corporate Finance (New York, 1997), 197-204; George Soule, Prosperity Decade: From War to Depression, 1917-1929 (New York, 1947), 298-304.
135. Morton J. Horwitz, The Transformation of American Law, 1870-1960: The Crisis of Legal Orthodoxy (New York, 1992), chs. 7 and 8; Thomas K. McCraw, "With the Consent of the Governed: The SEC's Formative Years," Journal of Policy Analysis and Management 1 (1982): 346-70.
136. Morton J. Horwitz, The Transformation of American Law, 1870-1960: The Crisis of Legal Orthodoxy (New York, 1992), chs. 7 and 8; Thomas K. McCraw, "With the Consent of the Governed: The SEC's Formative Years," Journal of Policy Analysis and Management 1 (1982): 346-70.
137. Nelles, The Politics of Development, 450-61.