Lethbridge Herald, The (Newspaper) - February 13, 1971, Lethbridge, Alberta
Feb-nory 11, TNI LCTHUIDOI HUMID What about the Hull Block? Business Talk By ART JOHNSON Caiadlau Press Stalf Writer Canadian stock markets were quiet this week in the absence of any major economic develop- uribwe failed to.retum phone Shoppers'World put to build what and when OR the former Hull Block site is as big now ts it was after the building was destroyed by fire early in 1963. Dennis 0'Cbnoell, tbe dty'f director of economic devetop- raeot, Mid this week, however, he is "confident" there will be a start on a downtown hotel within six months "despite rumors to the contrary." He would not elaborate. It's only reasonable that something has to go on the site, and soon. Marathon Realty Co. Ltd, paid the city more than a year ago for the west half of that block. Wales Hotel Holdings Ltd. (Royer family of Lethbridge) recently bought the east half of the block for an undisclosed amount. That's a lot of money to have tied up in property with no return. Marathon and CP Hotels made a joint announcement they were going to build and operate a first rate hotel on the property. That fell through. Things were in a state of flux for awhHe when the Royers an- nounced they had obtained a long-term lease from Marathon and were going to build a hotel on the site in conjunction with Treadway Inns of the U.S. There were other unannounced proposals for the rest of tbe property. Marathon's commitment to build a million hotel on the site, starting by Jan. 15, 1971, was' extended to July 1. Every- thing has been quiet on the sur- face since. One Marathon executive said last week he could not com- ment on what was happening. The other two top executives in the Calgary office have been tied 151 for the past two weeks Some credence must given to recent rumors that the Wales project is down tbe drain because it is a fact that one major developer, who has a couple of projects in Leth- bridge, is taking a serious, close look at the feasibility of erecting a hotel on tbe site. This has been confirmed. There is talk that other de- velopers are also looking at the property although they prob- ably are not as far advanced as the previous company. It would appear the Art Batty Holiday Inn develop- H. H. Smith Ltd. Customs Broker I COUTTS fhm. 344-3821 Some sources, including Mr, Batty, backed by at least one tudy, say the city "needs" 500 irst-class rooms. The question arises: How many new first- class rooms can the city eco- nomically support? Edmonton's population is growing at rate of aboul a year. In fte last 10 years only two major hotels lave been >ridge, with a population crease of about a year, is alking about two new hotels >eing built about the same ime? Bond prices Supplied by Uonerty Roadhouse and McCualg Broi. COVMNMINt OP CANADA IONRI OOVUNMINT Of CANADA OUAIANTKD lONOs If Lethbridge with first class Cm. Nil. Mm. 6 Apr. 4V4% Sept. 1, Oct. 1, Jiy 71 99.50 100.30 98.05 99.85 '75 98.25 99.25 '78 107.25 108.75 Sept. 1, '83 81.25 93.75 Pen) 3 Sep. 15 41.75 44.25 8 Oct. 1, '86 108.25 109.75 Apr. 1, '75 102.25 103.75 7V4% Jul 1, '75 105.00 106.00 Wt% Sep. 1, '92 87.25 89.75 MOVINCIAl __ '88 96.75 98.25 Alberta '90 109.75 112.25 '90 109.75 112.25 '88 96.75 '74 102.25 8 '74 102.25 INDUtniAl Abitibi 7V4% '87 88.75 92.25 Abitibi '90 104.75 107.25 Alta Gas '90 105.75 108.25 B C. Tel W4% '90 104.75 107.25 Bell Cdn 9 '89 105.75 108.25 CP Sec '90 103.75 106.25 CPR '89 103.75 106.25 Gulf Cdn '89 103.25 105.75 Hud B Ac '89 1M.75 107.25 Imp Oil '89 103.75 106.25 Inter Nick '90 104.75 107.25 Indust Ac '92 104.75 Man Hyd 9 Sask ACT 8 Man Tel 8 Labatt '90 103.75 106.25 Massey F '80 100.25 102.75 Noranda '80 104.75 107.25 '91 103.75 106.25 '78 104.75 107.25 '89 103.75 106.25 North C Roynat Simpsons Sears Ac 914% '90 104.75 107.25 Traders 914% '90 102.75 105.25 Tr Cdn P 10% '90 102.75 105.25 CONVRTIBUS Acklands '88 79.75 85.25 Alta G T TA% '90 118.75 123.25 Cons Gas '89 97.75 100.25 Dynasty 7 '87 64.75 75.25 Scur Rain 7V4% '88 95.75 98.25 Tr Cdn P 5 '89 89.75 S2.25 WC Tr C 5Vi% '88 109.75 111.25 AN UNANSWERED PHONE IS LOST BUSINESS! LETHBRIDGE TELEPHONE ANSWERING SERVICE LTD. Phone 328-1701 24-Hour Pertonal Service SECRETARY STENO Our western divisional office has an opening for an experienced secretary-steno in our young, congenial and energetic office in Fort Macleod. Please writa in confidence stating experience, and salary expected, NORTHWEST DESIGN AND FABRICATION LTD. MR. H. J. HARKS P.O. BOX 999 FORT MACLEOD, ALTA. there. Left- is overbuilt hotel rooms Little trend evident The Toronto Stock Exchange's industrial index, a major indica- tor vt market movement, closed tin week at 177.5S, down .50. I It was tbe second consecutive week it had moved The Toronto cxchasge'1 west- ern oil index gained 1.4S points to 209.96. Last week the oil index, in tbe wake of ipparent- ly-uncoaflnned rumors of an oil strike in the Arctic, Jumped up several Volume thii wttk at Toronto Central bank lowers rate now, it is doubtful, in view o> the present occupancy rates and population growth, that both would make it economic- ally. A new hotel requires an oc- cupancy of 60 to 65 per cent to realize a small profit on invest ment. Older establishments with mortgages paid, require considerably less. Hotel-motel occupancy in the city last year remained fairly static, accord- ing to informed sources, al- though a very small minority of establishments reported in- creases. If the Holiday Inn proj- ect is realized, and there's little reason to think it won't, it is doubtful a downtown hotel could be built and ob- tain the required occupancy by its second year of opera- tion to meet financial com- mitments. It is polite likely another hotel would be needed in three or four years but unless you have lots of money to play with and are not too worried about early returns on Investment, it could ruin you. It could take a long time to get back the estimated 000 a new downtown hotel would lose the first year, let alone losses in subsequent years. A hotel apartment com. rnerdal complex might be able to make a go of it downtown, but how many more commer- cial outlets can the city stand at this point? The land is ex- pensive and only a high-rev- evue development could af- ford to locate there. Hotel developers and opera- tors agree the site could not be better for a hotel. But occu- pancy, year-round, is needed to make it pay. Recently CP Hotels, Tread- way Inns and Sheraton have looked at the property. A first class hotel could make a go of it there if there were no other new first class hotels going up. From all indications the Batty Holiday Inn project is going to be top rate. A major development on the Marathon Wales property, such as a hotel or hotel-apart- ment complex, would help act as an anchor for the central business district to prevent erosion of the tax base and to protect the city's high invest- ment in the downtown area. The parking lot that is there now is doing nothing to safe- guard the city's investment. The question, Who is going to do what and when? is still un- answered but with private money tied up in the land it should not be too long before something concrete is done. OTTAWA (CP) The Bank of Canada announced Friday night it is lowering its bank in- terest rate to 5% per cent from six per cent effective Monday. Feb. 15. Bank governor Louis Kasmin- sky said he was taking the ac- tion primarily because of recent reductions in interest rates abroad. Mr. Rasminsky also noted In a brief statement that market interest rates in Canada also have fallen over the last few months. The bank's action is a signal of easier credit but does not necessarily mean changes in the rates to be charged for housing or chartered bank loans. The fact that the Friday re- duction was one-quarter rather than the usual one-half of one percentage point indicates that the bank fears too deep a cut could put more fuel on infla- tionary fires. The last reduction was Nov. 12 last year when the rate was set at six per cent. The bank rate, which governs interest charged by the federal bank on its rare loanr to com- mercial banks and investment dealers, is regarded primarily as a reflection of the prevailing interest-rate situation in finan- cial markets and money lend- rs. The reduction Friday to 5% per cent is seen as a delayed reaction to the gradually drop- ping rate In the United States. The U.S. rate, at six per cent last Nov. 10, was the highest it had been for some 40 years. But on Nov. 11, the U.S. rate dropped to 5% per cent and by Mov. 30 it was down to The last U.S. drop came Jan. 19 when the rate decreased to an even five per cent from 5'A, Jan. 8. Canada, on fte other hand, has maintained its six per cent level for the last three months. In the five months previous to the November decrease, the rate dropped four times, each time by one half of one percen- tage point. The November decision was prompted by declines in com- mercial short-term lending rates. As well, Mr. Rasminsky announced a marginal tighten- ing-up of the central bank'; lending facility for investment dealers whereby they could ob- tain funds when commercial markets were squeezed. At the time, Mr. Rasminsky said the reduction would bring the bank-rate more closely into line with other short-term inter- est rates. Mr. Rasminsky also said last November that the change in the rate "should not be inter preted as Indicating that there has been any alteration in the basic objectives of policy. The policy objectives were to kill inflation of prices withou bringing production and busi ness to a standstill. was 11.5 million shires, down from 14 tt million last week. So far, 1971 bu been a slow year for trading on Canadian markets, but the general trend established during the last six weeks hu been upward. January's volume d trading at Toronto was million shares, down from 65.8 million in the conwpooding month of 1970. Dollar value of shares dropped to million last month from million in January, 1970. The Toronto exchange's in- dustrial index has advanced 2.85 per cent since the beginning of he year, the gold index 10.72 per cent, base metals 6.33 per cent and western oUi 7.04 per cent. This week was busy on Wall Street. The New York Stock Ex- change's volume of 110.61 mil- lion shares represented the busi- est week of trading in history. The Dow Jones average of key industrial issues gained 12.26 points to 888.83. At the Montreal and Canadian exchanges, the composite index was down .69 to 175.2. Combined volume was 6.04 million shares, compared with 7.48 million last week. Losses outnumbered gains 278 to 160. On index at Toronto, golds were up 4.40 to 180.57 and base metals .57 to 94.94. Ministers rebuked for bending rules Ford recalls trucks, buses TORONTO (CP) Ford Motor Co. of Canada Ltd. an nounced today that it is recall ing buses and trucks for inspection of possible faults in power steering and brake lin ings. A company spokesman said the movt was a "preventivs one" and that none of the vehi cles had developed any defects The buses, some of whicl transport school children, have a system which allows the rear brakes to take over when th front ones fail, he said. OTTAWA (CP) Speaker _ucien Lamoureux rebuked wo cabinet ministers in the Commons Friday for bending parliamentary rules. He said be had serious doubts that Trade Minister Jean-Luc Pepin should have ta- >led a bureau of statistics >ress release as a means of countering opposition ar- gument about unemployment 'igures. He said Mr. Pepin should lave made a statement at the opening instead. This would have given the op- position a chance to replj1. This was not permitted under the standing order cited by the minister in tabling the press release. Mr. Pepin the buraw's press release showed there had been only a "minor change" In calculating the tet- sonally adjusted rate of unem- ployment. On Thursday Mr. Pepin laid there had been no change. RAPS MacEACHEN The Speaker later admonish- ed Privy Council President Al- lan MacEaehen, government House leader, for objecting to a motion introduced by Robert C. Coates (PC Cumberland- Colchester WORE A WIG Julius Caesar, one of the most successful warriors of all time, wore a wig and a laurel wreath to hide his baldness. I want you to pay less income tax. There's a neat little section in the Income TaxAc.tcalled.79B. It means that if you have an eligible retirement plan, you can save or defer some of your tax dollars. All you have to do is register your annuity or permanent life insurance plans. I can help you with it. But you must hurry, your plan must be registered by March 1st, 1971. And these things take a wee bit of time. Drop me a line and I'll send you more information. V. L "VERN" SODERQUIST 51S 7th St. S., Lsthbrldge Bus. 327.3452 Rei. 327-8268 CrOSSWOrd By Ernsl T. Theimer Edited by William Gant OUCH! ACROSS ANNOUNCEMENT KEITH SCHMIDT AGENCY TOP PARAMOUNT LIFE TEAM IN 70 Mr. Glen R. Brown, Executive Vice-President of Paramount Life Insurance takes pleasure in announcing that the Keith Schmidt Agency of 9942 82nd Ave., Edmonton is the Company's top sales team for 1970. The Edmonton Agency maintained a record sales volume right through December; and have been cited for their outstanding client service performance. They are from left to right Front Row: David Macintosh R. Keith Schmidt Charles R. Fountain Second Row C. Ray Semeniuk Walter F. Seehagcl Avis J. Erickson Runald Game ThiiJ Row Brian R. Hall Clarence Erickson Brian P. Nilsson 1 Tarty melon. 7 Geli. 11 Fold 15 Black Sea port. 41 Former president of Mexico. Docile. 24 Wave. 2546-A, 77-A, 111-A and 136-A, a rational limerick. 28 Born. 29 Agitates. 30 Ireland: ancient var. 31 Hamlet or Borge. 32 Mre. In Paris. 33 Earth goddess. 15 Petroleum: Ger. 36 Treat! cuff. 1 Notorious ship of. fiction. 2 Change. 3 Darned. 4 Wine cup. 5 Game fish. G Armenian rugs. 7 Dimly illuminated 6 Goddess of of discord. Make lace. 10 Crustaceans. 11 Former heavy- weight. 12 Desert. 13 Everyone, 14 Pods. 15 8.A. river. Prefix with graph. 39 Soap frame. 40 the marines." 43 Dickens heroine. 44 Top. 46 See 25-A. B4T.V. part. 55 Inhabitants of Biblical town. EG Notice. 57 Electrical wizardi E8 Despotic. 60 Initials on some pasto- ral calling cards. 62 Banded. 64 Timepiece, old style. 65 The wheys of milk. 67 Tasty. 69 Pilchard. 70 Signer of Declaration of Inde- pendence, 72 Gypsy. 74 Papal cape. 76 Regal envoy 77 See 25-A. 81 Author of 123 A. I! ostrlchllkt birds. 86 Undergrad. 87 Mealtime prayer. 92 More 94 Autumn pears. 95 Check. 1M.Mii.Jmb 110 Slow: mus. 111 See 26-A. poet. 116 Fencing weapon. 117 Decay In lumber. 118 Macaws. 121 Veranda. 123 124Slok. 125 Obi. 129 Male. 130 Post. 131 Pass. 133 Cut 135 Greek letter. ee 25-A. 98 Hlah priest; 141 Panted. var. 99 Sunk; lor st John to the Gaels. 103 Hauling logs. 105 Charge-', 106 Vim. 142 Support 143 Declaimed. 144 Nymphs. 145 Indian weights. 145 Inquisitive. 147 Saltpeters. DOWN 16 Finished. 17 Large deer. 18 Muck. 19 Appears. 20 French commune. 23 25 Mounted weapon. 27 Deserter. 34 In the balance. 36 you so. 38 Rainbow. 39 Unfolds. 41 Merit. 42 Article. hands. 45 Dressing. 46 Sorceress. 47 Card authority. SO.Psrtslnlng to stamp collecting. 81 Persian Gulf port 82 Famous highway. 83 Circular. 84 Turns. 48 49 Liberal, to cay the least. 50 Bags. 51 Sumus sunt. 52 prayer. 63 Puts on _._____. cargo. flB 59 Wading bird. 61 Son of Zeus. chain. 63 Branches. 66 Out on 68 Giver. 71 Not to the- race: paraph rasa, 73 Spreads. 75 Scruffs. 78 Knob. 90 French Bourbon family. 91 Own: Ger. 93 Corded fabrics. 95 Complete soaking. (U 97Warlike, 79 Man's name. 100 ReIIen. 102 for- 112 Leathers of 118 Mexican mer Yankee. champleve- friend. 104 European design. 119 Warning river. 113 Vocal horse. device. 107 Immature 114 Schoolboy 120AromatIo Insect hockey. herb. 109 Communist 17 x 23, Betty Lcary ACROSS 1 AH of us. 4 World wide workers' group: abbr. 5 Executive. 11 of writing. 12 Girl's nickname. feat 15 "Love 18 With 20-A, American hero. SO See above. 23 Delicious. 24 Spiral. 25 Soviet range. Stringed instruments, for short. 27 Formerly. 23 Twirled. 30 Ragout of -game. 33 Aweigh. 35 Not nice. 37 Let up. 38 American calamity. 40 German writer. 41 Allow. Id Inability to 42 Carrying to under- implement. stand. 44 Anger. 70 Forbidden 47 Expression ef acts and love. Items. 48 Honduras 71 Impudent. seaport. 72Cloilng 50 Assistant. words. 61 Coddle. 53 Time waster. 54 Smirch. 66 Break off. 57 Gain. the bucket. 62 Senegal's DOWN IFog. 2 Babi. 3 Knot. 5 Chief god of Memphis. 6 Girl's name. 7 Student's problem. capital. Man's Jewelry 8 Sin. Pleasant 9 A decree vistas. 10 State: abbr. 13 Sounds of pain or distress. 14 Rooting from the stem. 16 Holder of conquered land. 17 Started as a hobby. 18 Turkish title, 19 Knife. 21 Legal 22 Additional copy to bo Inserted: ptg. abbr. King of Israel. 29 Miss from Spain: abbr. 3f degree. 12 Constant irritating desire. 33 In good shape. 34 Shooting marble. 36 Gives up 39 Strive for superiority. 42 Withdraw from sight 43 Dare: Fr. 45 Participants of3S-A. 122 Haven. 123 Akin to copyright: abbr. 126 Rugged crest' 46 Biblical kingdom, 47 0.621 ml. 49 "Honest 50 Gettysburg Item. E2 Ndrtheners. 63 Part of Asia. 55 Raises, CRYPTOGRAM'S 127 Unadulter- ated. 128 Retains. 130 Emitted blood.