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Page Two April 1,1943 (Column 1) C-I-L's Annual Report Reviews D.I.L's History and Progress; Credits Employees for Success Company Operations Employ Approximately 31,500 Workers in Plants Manufacturing Variety of Munitions Far surpassing in size and significance anything previously undertaken by Canada's chemical industry are the vast operations of Defence Industries Limited, wartime subsidiary of Canadian Industries Limited, which in its three and one half years of existence has constructed and operated at a cost to the Canadian and British governments of more than $260,000,000, government-owned chemical and explosives plants, small arms ammunition plants and shell filling plants employing approximately 31,500 workers, of whom more than one-third are women, a supplement to C-I-L's 1942 Annual Report to its shareholders has revealed. Attributing much of the success of its contribution to Canada's immense munitions program to the fact that there existed within the C-I-L organization personnel with the needed managerial ability, technical knowledge and operating skill which was drawn upon to provide the nucleus working force, the Company in its report pays tribute also to the men and women of its various plants. Praises Workers "It is not forgotten," the report reads, "that behind the speed of operations and the volume of output is an army of men and women to whom should go unstinted praise, not only for their arduous efforts, but also for the spontaneous manner in which they have collaborated with management to meet urgent demands and to overcome the difficulties incidental to such rapid growth of a large organization." Patents as well as specialized knowledge have been voluntarily placed at the disposal of the Government for military purposes and royalty income has also been waived. Recognition of the desirability of handling direct war production separately from the operation of the established plants of Canadian Industries Limited led to the incorporation of Defence Industries Limited on September 14, 1939. The policy of the Government is that large-scale production of those products used exclusively for war purposes should be provided for by public funds and centred in government-owned plants. In practice, says the report, the formation of the subsidiary company has eased the administrative problems that accompany such a huge undertaking and has resulted in the segregation of government funds and managerial responsibility in connection with government plants. Moreover, it has served to assure that direct military requirements obtain priorities in the allocation of the resources at the disposal of the parent company. Two New Plants Under Construction Since February 1940, when actual construction of government plants began, twelve new units, most of them major projects, have been placed in operation and two others are nearing completion. Despite the numerous obstacles encountered, most projects were completed and in operation well ahead of original schedule and in the aggregate were below the estimated cost. In the government-owned plants managed by the Company shell filling and fuse assembly operations are carried on and widely diversified products are manufactured, including cordite, TNT, smokeless powder, fuse powder, smokescreen chemicals, various types of ammunition and a number of specialized war materials. Although the volume of production cannot be disclosed the report points out that output is in excess of original expectations as many units have been able to reach operating levels well above (Column 2) designed capacity. Major changes in design and specifications in order that munitions production might keep abreast of developments in military science and tactics have necessitated periodic declines in the volume of output, and operations of ! some units, particularly in the latter half of 1942, were at a reduced rate because maximum capacity was in excess of current requirements. Although costs are an important factor in the production of munitions the first consideration, says the report, must necessarily be the greatest volume of output of the right quality at the right time. Nevertheless, it continues, insofar as possible within the limits of the emergency strenuous efforts have been made to operate the government-owned plants economically and in spite of the difficulties involved production costs have for the most part been lower than originally estimated and De-fence industries Limited products have met the most rigid specifications with a minimum of rejections. Low Accident Rate Training new employees in the handling of explosives and in production and supervisory techniques have been an extensive undertaking of major importance. Accident prevention is given constant study. Comparative figures show that the accident rate has been kept remarkably low, and employees are to be commended on their excellent response to the appeal to observe scrupulously all safety regulations. Under the heading of Finance the report states that the funds required to erect the new plants are supplied by the Department of Munitions and Supply, acting for the Canadian Government and as a representative of the British Government. In all but the small arms ammunition branch of its activities, the Company's relationship with this Government Department is through Allied War Supplies Corporation, a crown company formed to develop and co-ordinate the production of wartime chemicals and explosives. Fees Compensate Company Defence Industries Limited is compensated for its services in connection with Government plants by means of management fees representing a small percentage based on total volume of work involved. The rates of these fees have subsequently been reduced in certain instances where production costs have been lower than estimated or output has been in excess of designed capacity. After deducting administrative costs and estimated income and excess profits taxes, but not the portion of the excess profits tax refundable after the war, the total net income from management fees for 1942 is equivalent to 1/5 of 1% of the total of the costs incurred by Defence Industries Limited on behalf of the Government in respect of the year's operations.(Column 3) GUARD'S SON PROMOTED FOR QUICK THINKING Cpl. John Powell's Son, Donald, Responsible for Sinking of Enemy U-Boat Quick thinking and equally quick action which cost Herr Hitler one of his long distance submarines has earned for Donald H. Powell, one of the four Army sons of Cpl. John H. Powell, local guard, promotion to the rank of sergeant and a leave during which he has spent some time with his father here at Ajax. (Picture Column 3) CORPORAL JOHN POWELL The action which won for him his stripes occurred on the Labrador coast where Donald has been stationed. A corporal at the time, he was on a routine tour of inspection of gun emplacements with his platoon, when, glancing seaward, he detected a Nazi submarine lying off the coast. Realizing that his particular equipment was incapable of sinking the enemy, he immediately had a nearby destroyer advised of the presence of the Nazi and as a consequence of his quick action the destroyer was able to apprehend the submarine before it could get underway. The enemy was subsequently sunk. The eldest of the four Powell brothers in the Army, Donald is 25 and like his brothers, comes by his soldiering naturally. His father, Guard John H. Powell, is a veteran of the last war, having been over seas with the 24th Construction Battalion. (Picture Bottom of Column 3) Happy to welcome her newly promoted husband home on his special leave was Mrs. Donald H. Powell. Here they both are pictured shortly after his arrival. The other Powell boys are Norval R., 24, Alex A., 20 and Wilfred R., 19. Another member of the family, an 18-year-old daughter, Dorothy, is doing a war job too as an inspector on Line No. 4. Others in this patriotic family besides Guard Powell and his wife are Audrey, 16, and Norman, 11, both of whom attend the Ajax school. Of his family's war service, Guard Powell is properly proud.(Column 4) Ajax Fourth Victory Loan Drive To Coincide With National Campaign Starting April 26 "Back the Attack" is Theme of Campaign For $1,100,000,000; Employees Support to be Sought During Plant Canvass Ajax's drive in support of Canada's Fourth Victory Bond campaign, the national objective of which is $1 100,000,000, will start on the same date, April 26, as the national campaign rather than a! a later date, as in the past, Victory Loan officials who recently consulted with the management of the Works have decided. The decision to time the local drive to coincide with the national campaign was made because it was felt that the major reason why the war workers here did not attain their quota during the last campaign was because the local drive was two weeks later than the national drive. As a consequence, credit for bonds purchased elsewhere by employees during the two weeks lapse between the national and local drives did not accrue to the local objective. Starting the local drive on the same date as the national campaign gets underway should correct the situation and enable the workers here to achieve the quota which the war finance committee officials will establish. Last year the quota was $350,000, but unfortunately it was not attained. We fell short of it by approximately $12,000. What it will be this time has not as yet been determined but in view of the increase in the national objective, the local quota will likely be higher also. Other than the fact that the local drive will again be in the nature of a plant-wide canvass, no details have been released. As in the past, however, the advice of the National War Finance Committee as to the best method to conduct it will be followed. Announcing as the campaign's theme, the slogan, "Back the Attack," war finance officials in this area have expressed the hope that the employees of the Works will do just that to the utmost of their ability and earn for themselves a place beside those other industrial workers who have achieved their organization's quota.- RED CROSS DRIVE SETS NEW RECORD Campaign Raises More Funds Than Any Other Previous Drive Now approximating $5,000 in subscriptions with many more returns yet to be made, the current Red Cross drive which got underway locally two weeks ago has already raised more money than any previous drive for funds including even the recent successful Aid-to-Russia campaign which raised approximately $4,500, Mr. H. M. Colling, who is in charge of the campaign here, has announced. "We should pass the $6,000 mark at the rate the donations are coming in," Mr. Colling remarked. "It's a new record here and one we all should be proud of. The Red Cross people are going to be more than pleased," he said. Comparing the success already achieved with what was donated to the Red Cross last year, there is every likelihood of the employees here doubling the $3,175 which was raised then. A final accounting will be published when all donations have been received by Mr. Colling's office. AJAX GLEE CLUB TO BE FEATURE OF NEW PRESENTATION Popular Showboat Production To Be Given at Early Date At an early date, towards the end of April or early in May, "Showboat," the famous musical extravaganza, will be presented by local talent at the Recreation Centre. Harry Brock Program Director, is now casting the feature parts. A feature of the production will be , the Ajax Glee Club's participation. About forty employees have already signified their intention of being a part of this singing group. However, a few more are needed to fill up the Club, Harry says, and he would appreciate hearing from any interested in singing. Harry designed his own set for the production of "Showboat" and after changes are made in the original sketch it will be fabricated, entirely, by the Construction Department. The necessary drawing and painting on the set will be done by Jim Lynch of the Safety Publicity Studio.(Column 5) FROM THE ALLEYS Final standing in all leagues, seasons closed: TUESDAY LEAGUE Points Line No. 3 .......................................... 12 Staff House ........................................ 9 Electricians ...................................... 9 Recreation Dept............................... 6 WEDNESDAY LEAGUE Village .............................................. 14 Line No. 1 ......................................... 13 Millwrights ...................................... 5 Government Lab............................. 4 FRIDAY LEAGUE Stores 2011 .................................... 15 Building 2012 ................................ 12 Laundry ............................................ 7 Technicians ...................................... 2 NOON-HOUR LEAGUE Engineers .......................................... 7 Development .................................. 6 Tool Inspectors ................................. 6 Stores ................................................ 5 Weekly high single prize-winners March 15 to 20 Eleanor Mitchell, 228; Bill Paul, 324. March 22 to 27 Helen Cedar, 232; John Stephens, 352. NOTES At this writing the men's Tuesday, Wednesday and Friday leagues are playing off for prize money and to declare a winner in each league. Noon-hour League will also play off to decide a winner in that group. The winners of each league will then play off for the championship of the plant. The ultimate winner of that title will have custody of the Plaque which now hangs in the alleys. Reg. Martin held a meeting with all captains present. All agreed that if arrangements can be made, a banquet should be held at which prize money and pennants will be presented.