Volume 2 - ElectricCanadian.com

486 HISTORY OF THE BANKcost of the buildings would provide not only for the interestpayments, but also for a sufficient sinking fund to retire theprincipal at maturity. If such a method could be adapted tothe circumstances of the bank, the latter would be enabled tokeep its overhead expenses in the matter of rentals at a satisfac-The stock of a holding company formed to meet thetory level.bank's requirements, to purchase sites chosen by it and toerect such buildings as its business required, would prove anattractive investment for outsiders, but it was deemed wiseto confine the ownershipto the bank itself. Inthis way notonly would any financial benefit be retained, but the operationsof the company could be controlled to the best advantage;and the experience gained from the buildings erected inaccordance with the bank's own designs satisfied the managementthat the course proposed would prove practicable andsatisfactory. The plan seemed eminently desirable, but therewas the one objection that the bank would surely be criticisedfor practically placing a mortgage on its premises. It wasfelt however, that mere criticism should not be allowed tostand in the way of what seemed in every way in its bestinterests when all the circumstances were known.Accordingly the Dominion Realty Company, Limited,was formed in 1903, and incorporated under the Dominion ofCanada Companies' Act with a capital of $500,000. Thecapital has since been increased from time to time, until itstands at $5,000,000 authorized, of which $3,150,300 had beenissued up to November 30, 1918. Licenses to transact businesswere obtained in all the provinces of Canada, and work wascommenced without delay.It was decided that the bank's investment in the sharesof the Company should be written off each year and that thetotal should be carried on its books at the merely nominal figureof $1, in order that no criticism might attach to any item inthe assets column of the bank's balance sheets. As bonds areissued to the extent of only half the cost of the property includedin the relative mortgage, and the stock issued to the