Lethbridge Herald, The (Newspaper) - August 3, 1974, Lethbridge, Alberta
Saturday, August 3, 1974 THE LETHBRIDGE HERALD 27 B.C. considers ammonia offer VANCOUVER (CP) The British Columbia Petroleum Corp. and the provincial government are studying a three stage 10 year billion petrochemical industry based on natural gas. James Rhodes, corporation chairman, said this week an American firm has proposed a two stage, million petrochemical refinery and manufacturing system here. This would form the buil of the 10 year plan. He said two other American companies, a Canadian com- pany and a Japanese company are involved in the talks, but would not disclose names. First stage in the million proposal, said Mr. Rhodes, would be an million fertilizer and feed plant in which am- monia is extracted from natural gas. He said this could be im- plemented within three years. The second stage, possible within six years, would set up a million plant and manufacturing business which would ex- tract further base ingredients, or resins, from natural gas. Resins are used in production of plastics, other feed stocks and fertilizers and forest industry products. Mr. Rhodes said about 40 different products can be made us- ing natural gas resins as a base. He said the secondary industry which would evolve to produce these products would form the final stage of the industry. The American company proposes to do its own financing, and in any case, the petroleum corporation, owned by the provincial government does not want to enter into a joint ven- ture, said Mr. Rhodes. British to study Vancouver site VICTORIA (CP) The English firm Simon Carves Ltd. has been commissioned by the provincial government to do a feasibility study on es- tablishment of a new oil refinery in the Vancouver area, Attorney General Alex Macdonald said this week. He said the government might build the refinery itself or go into partnership with a private oil company. Its capacity might be as large as barrels a day, added Mr. Macdonals. The company has created successful refineries all over the world, he said. Latest one is on Cyprus and the company is also working on North Sea oil. Government officials met with company representatives for two days in July. Mr. Macdonald also said that another company, Thome Redell, is doing market research on the gasolive needs. province s "We've met with the major (oil) companies and con- sidered their plans, or lack of plans, in terms of providing us with the essential refining capacity we need in B.C., he said. Asked about reports that an American company has proposed to set up a two stage million petrochemical refinery and fertilizer company in B.C.. Mr. Macdonald said it is "a good clean type industry" that the province wants. B.C. natural gas contains some of the ingredients which could feed a petrochemical centre, but now two thirds of it about 800 million cubic feet a day flows across the border into the United States, he said. The Herald Business Imperial Oil reports TORONTO (CP) Imperial Oil Ltd. reports ear- nings of million or a share for the first half of the year, up 84 per cent from million and 73 cents for the corresponding period a year ago J.A. Armstrong, chairman and chief executive officer, said increased sales of crude oil at improved prices and better earnings from petroleum and chemical products were primarily responsible for the increase in profits. The company reported sec- ond-quarter earnings of million. million lower than earnings for the first quarter of 1974. Mr. Armstrong said the cur- rent level of profits and other internally-generated funds is not sufficient to finance plann- ed exploration ventures and inventories that have been subject to extraordinary cost increases. He said it will be necessary for Imperial to borrow addi- tional funds to complete the 1974 program as planned. Open wide Mighty jaws of British Columbia ferry Queen of Surrey are prepared to take great gulps of traffic. Former Swedish vessel Stena Danica was bought for million and is being equipped in drydock for requirements of runs between lower mainland and Vancouver Island. Aviation purchase aids equipment firm EDMONTON (CP) One of Alberta's largest equip- ment firms is reducing man- power problems by moving into the aviation business. R. Angus Alberta Ltd., which sells and services Caterpillar equipment from Lethbridge to the Arctic Islands, has acquired the Edmonton-based Mercury Flights for an und'sclosed sum and will take delivery of a Saber Liner jet next month. Mercury flies five twin Beechcraft. The main reason for the move is the necessity of carrying personnel in and out of remote locations quickly and efficiently, says company president J.R. Angus. "We've analysed our business and what we're real- ly concerned with is man- power. This has been the thing that has concerned us more than anything else. "With the accelerating ac- tivity in the North, the critical shortages of personnel to visit the sites by conventional means, in addition to our very substantial use of commercial aircraft, we felt that the ac- quisition of Mercury Flights would provide us with a broader base to serve the in- dustries in northern Alberta J.A.ANGUS and the Territories." Northwest Unemployment Mid-June Labor Force Seasonally Adjusted 4.9 of Labor Force 1970 I 1971 Mr. Angus said Mercury will be run as a charter operation, separate from the company's other interests "We are going to assess our own company's needs on the basis that it's an outside operation and the type of aircraft we'll need for a par- ticular job. "The Sabre 60 will be hang- ared at Mercury Flights but will be owned by the equip- ment company alone." Service demands have also pushed Angus into the com- puter Angus Computer Services more recently, into the tire supply and recap Angus Tire Service Ltd. "Because of the soil condi- tions in Alberta, we expanded into the tire business and be- cause of the demands for effi- ciency and speed we also ex- panded into the computer- service business." The company's computer is hooked into a Caterpillar in- ventory supply network which gives a three-second response on the location of spare parts in any of 14 Caterpillar depots across the United States. Normally, parts deliveries can be made within 24 hours, even to such remote sites as Melville Island, said Mr. Angus The computer is also used to log details on various com- ponents in clients' equipment, revealing signs of weakness belore the machines break down A D-9 tractor today costs so it is important to maintain good inventory and operating control data, he said. Angus is a family company, started in British Columbia by Mr. Angus's father in 1919. The sons took over operations during the Second World War, and brother Rick, now chairman of the board, started R. Angus Alberta Ltd. in 1951 'Over-qualification' plagues older men Unemployment down Unemployment rate fell to its lowest level in more than four years during June and Statistics Canada reported Tuesday a decline in the seasonally ad- justed unemployment rate to 4.9 per cent from the May level of 5.5 per cent of the labor force. Total employment rose by to while total unemployment dropped to That was 4.8 per cent ot the work force. 1 MONTREAL (CP) The unemployed executive, despite his many years of ex- perience, faces a long, hard struggle back into the work mainstream in today's business world of automa- tion, computers and young 'blood. In recent years, employ- ment opportunities for these Valve sale OTTAWA (CP) A million sale of valves by Velan Engineering of Montreal to the Soviet Union was announc- ed this week by the trade department. The contract, signed under a 1971 Soviet-Canadian agree- ment on technical exchange, is the largest sale of valves to the Soviets from North America, the department said. Velan is Canada's largest valve manufacturer. men have become few and far between despite assurances from their former bosses that "with your experience, all doors are open." In most cases, rejection is based on "over-qualification" as executives try, usually in desperation, for jobs of a lower status to the work they once did. "Sometimes you are actual- ly over-qualified, which is flattering but quite doubtful, or you're too says one 56- year-old executive, who lost a job nine months ago and is still looking for work. "The other excuse is that they can't fit you into their re- tirement package. Most employers take the attitude that if they can take a young man out of university, who knows nothing, they can train him to become a corporate sort of mummy." Panic buying grips anti-freeze items OTTAWA (CP) Anti- freeze supplies for next winter are under pressure from what industry and retail sources de- scribe as panic-buying and op- portunism Adequate supplies at reasonable prices should ex- Rental rates to jump TORONTO (CP) Rental rates for office space in Can- ada's largest urban centres are expected to jump dramatically by the end of next year, says William Moore, vice-president of the office leasing division of Toronto-based A. E. LePage Ltd He said in an interview Thursday that rates will prob- ably rise 20 per cent by the end of 1975. and higher construction and financing costs will mean new office space will have to yield 20 per cent more revenue to ensure an adequate return. Some building owners are introducing a new concept of rent reviews in leases, Mr. Moore said. This is to protect owners from inflationary cost lncreases over the life of a long-term lease. Mr. Moore said a decline in the amount of vacant office space in Toronto will contribute to the upward pressure on rental charges. The situation in Montreal and Vancouver promises to be tight as well, Mr. Moore said. However, both cities have of- fice rental rates that are about 10 per cent lower than Toronto's. Federal spending on target OTTAWA (CP) Federal spending and revenue for the fiscal year ending march 31 are just about on target with forecasts in the May 6 budget, preliminary figures show. Revenues for the 1973-74 fiscal year are estimated at billion compared with the forecast 19 billion and spending totalled an es- timated billion against the forecast billion, says a finance department news release. The envisaged deficit is million against a surplus of million a year earlier. The 1972-73 revenues were billion and spending totalled billion. Finance Minister John Turner May 6, in the budget that led to the defeat of the minority Liberal government, understated personal income tax revenues of billion by about million and cor- poration tax of billion by about million. But he overstated an- ticipated revenue from the ex- port tax on crude oil, which amounted by March 31 to an estimated million com- pared with the forecast million. Non-tax revenue including earnings on investments total- led an estimated billion against a forecast billion. Propane approval OTTAWA (CP) The Min- ing Association of Canada calls for "an end to the squabble" over revenues bv federal and provincial governments and suggests the two devise a new system of tax and royalty measures. In a review of the legislative scene, the association says the industry is not opposed to pay- ing higher taxes or amended regulations "providing they are reasonable and do not im- pair the industry in any of its essential functions." ist, say major retail outlets, but current prices range between and a gallon compared with to last season. One Canadian Tire Corp. as- sociate store here took delivery of third its annual 19 Four business days later, half had been sold. We've just limited purchases to two gallons per said the proprietor....The fastbuck ar- tists are just making things worse; if there is a shortage, it will have been created by the public." Other retailers say construction companies and carriers are buying thousands of gallons in an attempt to satisfy the needs of their fleets for several years. REPORTS IfOARDING "And then you hear the ru- mors of people buying up 1.000 gallons and stashing it away. If the price does go up, I sup- pose they'll make a killing, but I believe some people are just going to get stuck with a garage full of anti-freeze that they won't be able to sell." said a dealer. Canadian Tire now sells antifreeze for a gallon, up from last year's The public also seems to be under the impression that antifreeze in an automobile's cooling system must either be replaced or at least topped up each fall. "This just isn't said the Canadian Tire spokesman. "Modern anti-freeze is good for at least two years. People should have the strength of what's in their car checked at a service station. It only takes a minute and they may not have to buy any at all this year Higher prices are said link- ed to the world energy situation; there are in- dications that major manufac- turers are not producing as much this year. Spokesmen for Dow Chemical of Canada Ltd. have said the main cause of any threatened Shortage is inade- quate refining capacity for production of ethylene, a petroleum ingredient and a key ingredient of antifreeze. The situation did not indicate a shortage of oil or natural gas, the raw materials needed Bill approved WASHINGTON (Reuter) A bill which will allow Americans to buy gold for the first time in 40 years beginn- ing in 1975 was given final approval by the House of Representatives yesterday to produce ethylene. There has also been an in- dication that major are diverting more of their production capacity to plastics products, also in keen demand, cutting back produc- tion of antifreeze. Dow and Union Carbide Canada Ltd. are the major Canadian producers. Large oil companies simply purchase the product and retail it under their brand names. A Dow spokesman said Thursday the company's ethylene producing plant in Sarnia. Ont.. is operating at full capacity But the company will be supplying to a wholesale cost of about a onh 80 per cent of last year's supply. Auto sales increase OTTAWA (CP> Sales ot new motor vehicles in June reached 127.628. up 1.9 per cent from a year earlier. Statistics Canada said yester- day. The agency, issuing advance information, said the total in- cluded 83.379 passenger cars, up 0.2 per cent and 27.369 commercial vehicles, up 16 per cent, they were manufactured in Canada and the U.S. Sales of overseas vehicles included 14.775 cars, down 10 3 per cent. 2.105 commercial vehicles up 8.4 per cent. Total value of sales was 8 million, an increase of 8 1 per cent from a year earlier. For the first six months ol 1974 sales were 686.445 units valued at 2 billion, a 9 8- percent increase in sales value for the same period in 1973. H. H. Smith Ltd. 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