August 5, 1942 Page Three (Centre Flow Chart) How To Calculate the Tax on Your 1942 Income(Columns 3-4 Right Side) Growth and Record of D.I.L. Remarkable Achievement Executives Divulge Details of Development of Huge Munitions Company The vastness and scope of Defence Industries Limited, the war-spawned subsidiary of Canadian Industries Limited, the story of its development and achievements in the short time of its existence, and an insight of the details of its part in the production of war materials for the United Nations, have been partially revealed in recent speeches of Company executives. Addressing a conference of D.I.L. personnel officials in Montreal, H. Greville Smith. Vice-President and General Manager, tracing the history of the Company since its formation at the outbreak of the war to handle the production of munitions which the parent company—Canadian Industries Limited—anticipated it would be asked to undertake by the Government, is quoted in Contact, the newspaper of Canadian Industries Limited, as saying in part: "D.I.L. is a munitions company; it has no commercial business of any kind whatsoever; it is solely devoted to the production of war materials for the Governments of the United Nations in accordance with the programme of the Department of Munitions and Supply of the Canadian Government. In almost all of our operations we act as an agent of the Government and, with the exception of our two comparatively small plants for the manufacture of TNT and cordite, all the plants are owned by the Government. "In September, 1939, D.I.L. began life with a total roll of some 250 employees, all C-I-L people, two small plants and a future that was completely unpredictable, for neither we nor the Government knew what would be required of Canada in the struggle that had just then begun. Apart from the original TNT and cordite plants—that have done yeoman service ever since, particularly in the first year of the war when they were the only plants in Canada producing these essential materials—our first venture was- the Government decision to build a plant near Parry Sound, decided upon in February 1940, and in operation on TNT manufacture in September of that year. Expansion Rapid "From the first project things moved very quickly, accelerated by the grave situation facing England and the Empire after the fall of France; Canada's largest explosives plant, two plants for small arms ammunition, a plant for the manufacture of a smoke-producing chemical, another for an explosive ingredient, a cordite plant, and finally the two large shell-filling plants—an impressive total of about $75,000,000 of construction work. Just at the moment we are about to undertake a further large increase in small arms ammunition manufacture, involving another new factory, and also a plant to load fuses, so our total construction complete and in hand is now well over the eighty million dollar mark. ' 'As our construction programme grew and operations began to get under way, our 250 employees have grown to over thirty thousand, practically all in the eighteen months since September, 1940, when the first government plant started operating. Production Valued in Millions "We have shipped out well in excess of 100,000 tons of explosives and chemical munitions products from plants all designed and built since the spring of 1940: and, in addition, we have delivered several hundred million rounds of small arms ammunition from the new government plants. We have handled about $140,000,000 of government funds in this programme and our total production to date is valued at about $ 55.000,000. "D.I.L, does not sell the production from the Government-owned plants but receives a small management fee for operating them. Consequently, every cent saved by greater efficiency in the use of materials or labour is a direct saving to the Government; in no circumstances does any fraction of the saving accrue to D.I.L. Conversely, any waste or extravagance is a direct loss to the Government—to you and me as taxpayers—to the people of Canada and the United Kingdom, who own these factories. D.I.L. has pledged itself to the Government to operate these works with the keenest possible regard for efficiency and economy in all departments. That is a pledge we are resolved to honour most strictly." Employees Come From Many Places Employees of the Company have come from many widely scattered places, both here and abroad. At the Pickering Works, in addition to the Canadians and those from the United Kingdom, there are some from the United States and other member-countries of the United Nations. There are people from some of the more exotic countries, too. One girl in Ajax came from India, others are from South Africa and the West Indies, to name a few of the more remote. At a recent sales meeting of the General Chemicals and Alkali Divisions of C-I-L in Montreal, Dr. H. G. Littler, an official of the D.I.L, told of seeing on a shell filling line a French-Canadian farmer and a trainee working alongside of a doctor of medicine who used to have a large practice in Paris and who escaped just ahead of the invasion. The foreman on the line was an Englishman lent to D.I.L. by another Canadian chemical manufacturer and the shift supervisor was a Free French major. The man in charge of production was a mining engineer from British Columbia and the Works Manager was a member of the C-I-L "Cellophane" staff from Shawinigan Falls. Continued on Page Four (Picture Centre of Column 3) W. G. CUTTLE Manager, Shell Filling Division Defence Industries Limited (Picture Top Right Column 4) H. GREVILLE SMITH Vice-President and General Manager Defence Industries Limited