Lethbridge Herald (Newspaper) - January 8, 1971, Lethbridge, Alberta
Friday, January �, 1971 - THE LETHBRIDGE HERALD - 17 x iiM\n: Prices sharply up in brisk trading . TORONTO (CP) ~ Prices rose sharply higher in brisk mid-morning trading today at the Toronto stock market. On index, industrials were up .73 to 176.16, golds 3.50 to 168.64, base metals .88 to 92.57 and western oils .58 to 199.05. Volume by 11 a.m. was 771,000 shares, up from 721,000 at the same time Thursday. Trading Thursday was the heaviest since Nov. 30. Gains outnumbered losses 178 to 84 with 171 issues unchanged. Miscellaneous quotations Vancouver, Calgary, Montreal (Supplied by Doherty, Roadhouse and McCuaig) LAST BID OR SALE di:00 a.m. �uott�> (11:00 .m. Quant) The tax column (11:00 a.m. Quoten Government tax pamphlet misleading WESTERN OILS Almlnex Asamera Banff BP Oil Cat Can South Cdn Ex Gas Ashland Cdn Homestd Cdn Ind Gat Oil 5.19 14.75 12.00 S.90 S.15 4.40 9.35 13.00 Cdn Super el R Rio .35 to 178.91, utilities .55 to 152.14, banks .08 to 175.68 and the composite index .37 to 174.10. Papers dipped .61 to 93.77. Combined volume on the Montreal and Canadian Stock Exchanges to 11 a.m. was ACTIVE TRADE NEW YORK (AP) - The stock market drifted indecisively in fairly active trading early this afternoon. The Dow Jones average of 30 industrials at noon had slipped Cen Dei Charier Chleftan Dome Peta Dynamic Gt Plains Mill City New Cont Numac Permo Petrol Place Gat Ponder Ranger Scurry Rain Spooner W. Decalta MISCELLANEOUS INDUSTRIALS Hugh Rust Husky Oil Husky oil War Inter Prov Plpa Intl Utll P�d Inter Steel P pa Jefferson Laka Kaiser Res , �, N. W. Finance 4.13 4.54 28.00 N W. Gr 4.78 5.25 17.25 Principal Gr 3.75 4.12 11.621/1 Royfund 5.2) 5.37 93.87'A United Ac 4.50 4.95 14.25 Universal Sav 2.B7V4 Temp Gr VANCOUVER Anuk - Arctic Mining So'/St sxP|or 'mv, Beth Copper Borrilte^Rldga 'vAn Block Bros iva, Brenda S*" B.C. sugar �fn,. B.C. Sugar Pfd Am Capt Inter Churchill Copper Coronation Credit 24.25 croyden 12.12v1 Dolly Varden 16.00 Endako Giant Mascot Grantsle .Key Indust Growers B Hys Interior Brew Jericho Kamloopt Copper Lornex 7.75 Medrona 8.90 New Cronln 33.00 34.75 41.SO 64.25 11.50 22.50 5.00 3.28 3.58 Okanagan Hellcop 4.87 5.35 Primer 4.40 4.82 Pyramid 5.74 6.30 silver Stand 11.67 12.79 Tro|an 2.99 3.28 Western Mines 5.22 5.90 Western Explor .26 .15 .61 15.121/1 .11 4.00 8.10 16.20 15.50 4.30 1.24 1.20 .24 .39 13.75 4.40 10.62Va .30 3.10 2.30 5.25 .10 .14 6.40 .35 8.00 3.15 .16 .39 1.36 .31 3.70 .27 industrials Toronto mines, Supplied by Richardson Securities of Canada LAST BID OR SALE (11:00 a.m. Quotes) MINES Acme Advocate Atb. Akaltcho Area Mines Black Bay Bralorne Broulan Bethlehem Brunswick Canada Tung. Casslar Central Pat. Chimo Con west Cons. Rambler Coin Lake Cochenour Cralgmont Dickenson Mines Denlson Mines Deer Horn D'Eldona Dome Mines Dona Ida Discovery Mines East Malartlc East Sullivan Falconbrldge Frobex First Marltlmet Giant Y.K. Gunnar Grandue Headway R.L. Holllnger Hud. Bay M-S Hydra Ex. Highland Bell Iron Bay Iso Jollet Quebec Kerr Addison Key Anacon Labrador Lake Shore Leltch Langls silver Macassa Madsen R.L. Malartlc G.F. Martin McNeely Maybrun Maclntyre Meta Mldrlm New Athona New Calumet (11:00 a.m. New Imperial mm. Norahda Quotes) 1.78 29.00-8.80 (11:00 a.m. .Northgate *-M opemlska Oslsko Patlno Pine Point Placer Dev. P.C. Exp. Quebec Man Rayroek Radiore Rio Algom Roman Crop. Sllverflelds Sherritt Gordon Silver Miller Steep Rock Slscoe Tek Corp. Texmont Upper Canada Western Mines Wright Har. Wlllroy Windfall Yellowknlfe Br. Zenmac INDUSTRIALS Abltlbl Alcan Algoma Steel Afco Ind Allan Sugar Bell Tet Brazil Trac B.C. Tel Burns B.C. Forest B.C. Sugar CAE Ind Cdn Brew Chemcell Col Cellulose Cat Power Coron Credit C.W.N. Gas Cdn Indust Canada S S Cdn Marconi Cdn Vlckers Chrysler CPR !l4Vi Cominco 139.87V4 Cons Balh .14 Cons Gas .32 Dlst Sea .17 Dom Bridge .32 Domtar .46 1.55 .06Vi 1.56 .23 15.25 4.50 1.87 23.75 2.40 1.70 10.25 .86 .14 .45 9.30 1.18 25.75 .05 1.01 59.00 .19 1.06 1.50 4.70 138.25 .37 1.09 9.35 1.16 7.35 8.50 37.00 20.50 .21 2.82 3.50 1.69 .22Vi 10.12VJ .30 33.00 3.00 1.60 .13 1.10 .71 .80 10.50 Dom Textile Dom Stores Dofasco 10.12'A Fam Play .32 Fd of Amer 29.25 Gt Cdn Oil 29.12Vi Gen Motors 32.00 Gt Lakes Pap .90 Gult Oi> Cda .23 Greyhound 1-30 Hawker Sid Huron' Er,e 16.37'A Hiram Walk 7.10 Imperial Oil Imperial Tob Int Nickel Int Pipe Inv Gp A Int Utilities Indust Accept Laurentide Kelly Doug A Loeb Loblaw A Metro Stores Massey Ferg 1.85 16.25 .07 2.50 1.73 6.10 .67 2.02 3.90 1.20 1.33 .13'A 4.80 12V, McMillan Blot Moore Corp Molsons A Molsons B 8.37Vi 25.00 9.50 7.00 47.00 16.371A 64.00 8.75 23.50 Pembina Pp Power Corp Price Co Rothmans St Law Corp Shell CDA Simpson's 16.62V* slmP s'ar* 4 70 Selkirk A � 00 Texaco /50 Traders Gp A s'50 Trans Mtn Pp 97Union Gas 55 Union Oil 10.MM, Versatile Mfg 12 25 Westeel Union Car Weston's B Woodward's A West Cdn Sd Zenith Elec BANKS Can Imperial Montreal Nova Scotia Royal Tor-Dom 28.75 2.90 9.50 27.25 69.25 24.75 12.25 19.00 50.50 19.00 14.75 Quote*) 12.87'A 10.50 33.62V2 10.87'/a 57.00 3.85 79.75 19.25 21.00 14.12'/a 2.25 20.00 40.25 19.87Va 15.75 46.00 27.62VS 8.00 37.00 17.12'/a 6.62Va 5.25 4.10 5.00 36.25 10.50 27.50 34.25 15.87Va 15.37V� 16.00 24.B7Va 6.00 9.25 13.00 19.00 33.87'/i 18.25 22.37Va 10.00 26.75 10.87V2 19.37V2 15.75 42.00 3.80 9.25 15.50 19.75 19.00 3.65 1.20 19.62Vs 14.62'/2 21.50 22.621/a 19.75 JVeti? York stocks Amr T and T Anaconda Bth Steel Chrysler Comsat Dupont General Motors Gulf Int Harvester Kenn Copper Supplied by Richardson. Securities ol Canada S0.62Va Montgomery Ward 30.62'A 20 Golds 168.81 up 3.67 20.00 Sears 75.87V* 10 Base Met 92.40 up .72 23.00 Std Oil of N.J. 71.75 15 W Oils 199.20 up .73 26.62V* Texas Gulf 116.87V* Volume 1,357,000 ___ 5�;i2Vi Texas Co 34.00 NEW YORK AVERAGES 134.50 Woolworth 36.50 30 Indust 837.08 off .75 79.00 Wcsflnghouse Elec 65.00 20 Ralls 176.32 Up 18 31.87'A U.S. Steel 33.12Va 15 Utilities 122.41 up .22 28.S7Va TORONTO AVERAGES 65 Stocks 274.60 up 02 38.37V* 20 Indust 176.12 up .69 Volume 6,880,000 Livestock pamphlets and circulars with the commendable object of making the attitudes and practices of the department more widely known to taxpayers and their advisers. While the new practice of publishing such information is extremely valuable, two such recent publications require comment. The first is a small booklet called "You are Asking - The Story of Taxation", the first of a series of such pamphlets, and the other is an information circular. Number 70-9, dealing with?l"Tax Evasion and Tax Avoidance''. Both are readily available at your friendly neighborhood tax office. "The Story of Taxation" Is a useful and successful attempt to describe in simple and clear language how the federal tax system works, the functions of the Department of National Revenue, and the basic components of the Canadian tax system. It does an excellent job and should be read by all students as well as ordinary laymen who want a 20 page rundown on the federal tax package. In its attempt to be fair, it even contains the startling confession that "Canada's taxmen don't pretent to be infallible". That momentary slip can readily be forgiven, but there is one area of comment which is so misleading that it requires the pamphlet to be withdrawn and corrected before widespread distribution can be recommended. The area of glaring error is that contained under the heading "Tax Avoidance". This is preceded by a section dealing with "The Cheater", appropriately, but chillingly, which describes the results of being caught with your hand in the tax till. But accuracy ends there. The commentary under "Tax Avoidance" begins: "What we call tax avoidance' is something else. Generally speaking, this involves taxpayers - relatively few - who design schemes or gimmicks, or have consul tants do it for them, for the purpose of evading tax." After this grossly inaccurate statement, the pamphlet goes I on to conclude with the reas-1 MilliCI surance that we may all sleep well knowing that the interests of we honest taxpayers are being protected: "When tax gimmickry became a major problem, the Department tablished a division to deal exclusively with these practices . . . (the) division is uncovering many of these schemes and is bringing the full weight of the law against offenders Now, if these observations were directed at the subject of tax evasion, and not tax avoidance, all would be well. But tax avoidance is indeed something else and it does the government no credit to attempt to equate the two. The clear and unmistakeable impression, presumably intended to be left with the innocent reader is that people who legitimately arrange their affairs so as to minimize their tax bill are no different from criminal evaders; that tax minimization is the product of sinister schemes and gimmicks thought up by shady professional advisers; that these unworthy people are "offenders" and that anyone planning such activities will feel "the full weight of the law". SHEER NONSENSE To put it very mildly, as every tax authority and professional adviser knows, or should know, this is sheer nonsense. More accurately, it is distressing to see public funds spent to intimidate taxpayers from doing precisely what the law permits - legally reducing their tax bill. As the authors of the government paper well know, there is a world of difference legally and morally between tax evasion and tax avoidance. Even the government's more detailed second publication, entitled Tax Evasion and Tax Avoidance", intended mainly for professional advisers, acknowledges this fundamental distinction. It approves "any form of tax planning that consists of a genuine arranging of one's affairs openly and within the framework of the law so as to keep one's taxes to a nunimunV'. In- deed, the Revenue Department's Director of Special Investigations, J. L. Gourlay, writing in "The Canadian Chartered Account a n t" acknowledges that "tax planning is not wrong; it is the prerogative of any taxpayer in Canada' provided it is done openly and honestly. An example. A union is negotiating a collective agreement. Once the bargaining agent knows what he can ac complish in dollar terms, he decides how best to take the increment. He may take it as a retroactive raise in the current year because a tax rate increase is expected in the following year, or alternatively, he may push the raise into the next year because, for instance, the three per cent surtax will be eliminated, or he may take a certain portion as non taxable "fringe benefits". All of this is tax planning, or tax avoidance, and is as perfectly legitimate as is the case of the businessman who incorporates his business to minimize his tax, or transfers assets to his wife and children to reduce his potential estate tax. The most famous approval of tax avoidance plans came from the highest English court which admonished the tax authorities: "No man in this coun- tryisunderthe smallest obligation, moral or other, so to arrange his legal relations to his business or to his pioperty as to enable the (tax authorities) to put the largest possible shovel into his stores." That statement and many similar judical observations have been restated and consistently approved by every court In Canada. Admittedly there are grey areas, and the line between tax avoidance and tax evasion is often obscure. These types of cases are often the subject of court disputes between the taxpayer and the tax gatherer. That is as it should be. But for the Revenue Department to attempt in a widely read pamphlet, "The Story of Taxation", to lump tax avoidance with tax evasion, using inflammatory language to inhibit taxpayers and professional ad-v i s e r s, is an unwarranted smear, and diminishes the stature of an otherwise excellent effort. The booklet should be withdrawn and re-written to present a more accurate and balanced explanation of tax avoidance, lest its unsuspecting audience be given a distorted view of the law. (Mr. Aspcr is a Winnipeg lawyer) Advantage of natural gas is low-cost 'myth' CALGARY (CP) - Alberta manufacturers receive no financial benefits from the availability of natural gas in the province, a public utilities board hearing was told here. The advantage of low-cost natural gas ... is largely a myth," said a statement presented on behalf of Western Chrysler wage talks way Rapeseed Thunder Bay FRED BODIE Mr. Fred T. King, President of Fred King Motors, takes pleasure in announcing the appointment of Mr. Fred Bodie to the position of General Manager. Mr. Bodie is well qualified to assume this new responsibility. He and his family first took up residence in Lethbridge in 1953. During the twelve years he was in lethbridge, Mr. Bodie acted as Sales Manager for two automobile dealerships. In 1965, he ojumed the position of General Sales Manager of a large metropolitan Chrysler dealership in Calgary. In 1969, Mr. Bodie moved to Vancouver and accepted the position of General Sales Manager of the largest Chrysler dealership In British Columbia. While in Lethbridge, Mr. Bodie was active in community affairs; particularly In the area of the Lethbridge Community Chest and Little League Baseball. He is active in church work and is a former elder and choir leader of the lethbridge Central Church of Christ. He was also a member of the Green Acres Kiwanls Club. Mr, Bodie would welcome the "�-<-wcl of old friendships and business acquaintances at "King's Corner" - 3rd Avenue and 11th Street South. *** Apr 275% Jun 269%, Oats May 87% Jly Oct. Barley May 130 Jiy Oct Rye May Jly Oct 117 117 272 268% 87% 1293,i 116% 116% 275% 269 87% 88V4 88 130 129 127% 116% 117 116 CALGARY (CP) - Receipts to 11 a.m., 500 head, practically all cows and replacements. Trade was active. Few slaughter steers sold steady with Thursday's close. There were no slaughter heifers on offer. Cows were mostly medium and canner kinds selling at steady prices. Bulls were steady at week's higher level. Choice steers 30 to 30.80, good Dollar value MONTREAL (CP)-U.S. dollar in terms of Canadian funds down 1-32 to $1.01 17-32. Pound sterling down one cent to $2.42%. NEW YORK (CP)-Canadian dollar off 7-64 at 98 31-64 in terms of U.S. funds. Pound sterling up 3-32 at $2.39 23-32. 28.75 to 29.75, medium 27.50 to' 28.50. Medium to good cows I 19.50 to 21, canners and cutters 16 to 19. Good bulls 24 to 26.50. Replacement cattle and stock calves met a good local demand at steady prices. Most of the stock calves on offer weighed from 400 to 550 pounds Good feeder steers under 750 pounds 34 to 36.90, over 750 pounds 30 to 32.50, good feeder heifers 28 to 31. Good stock and feeder cows 19 to 23, good stock steer calves 38 to 41.50, good stock heifer calves 32 to 35.25. There were no hogs sold. COUNTY OF VERMILION RIVER NO. 24 requires SUPERINTENDENT OF SCHOOLS Applicants must have at least the fallowing qualifications: (a) Valid Alberta Teaching certificate. (b) 5 years teaching experience in Alberta or In a school system of equivalent standard. (c) A degree from a University of Alberta or from a University of equivalent standard. (d) Have pursued one year's graduate study In a field acceptable to the Minister of Education either at a University In Alberta or at a University of equivalent standard. Reference required. Salary to be negotiated. Interview may be requested. Interested applicants are asked to submit application to the Office of Secretary-Treasurer, not later than January 15, 1971. COUNTY VERMILION RIVER NO. 24 BOX 69 KITSCOTY, ALBERTA Free storage periods cut at elevators WINNIPEG (CP) - The board og grain commissioners announced here free storage periods are being reduced in country elevators and eliminated in terminal and eastern elevators. The free storage period in country elevators will be reduced to 10 days from 15 next Aug. 1. Elimination of free storage at terminal and eastern elevators is effective April 1. The board also announced an increase of $1.25 in basic elevation charges at eastern elevators effective April 1, bringing the rate to $21.25 per 1,000 bushels of all grain. A similar increase will be effective in some additional charges for receiving and shipping. The changes follow public tariff hearings in Winnipeg and Montreal last fall Reduction in bank rate okayed WASHINGTON (AP) - The Federal Reserve Board governors approved Thursday a reduction of the discount rate of the major reserve banks to 5'/i per cent from 5%, effective today. The last change in the discount rate, which governs the cost of borrowings from the Federal Reserve System by member banks, was announced last Nov. 30, when the rats dropped to 5% per cent from 5%. The reserve banks whose rate reductions were approved by the governors are those in Boston, New York, Philadelphia, Cleveland, Richmond, Va., Chicago, St. Louis, Minneapolis, Kansas City and San Francisco. The rate going into effect today is the lowest since August, 1968. DETROIT (AP) - Bargainers for the United Auto Workers and Chrysler Corp. meet today for their first serious main-table talks in three weeks following rejection by the union of the company's long-awaited new wage proposal. The proposal, for the most part, closely followed the pattern set in new contracts between the UAW and General Motors Corp. and Ford Motor Co. But UAW President Leonard Woodcock said it had "deficiencies" in sections dealing with retroactivity of the first-year wage increase for workers paid by the hour and with pay raises for salaried employees. The UAW leadership is to meet Monday to make a decision "as to its course of action leaving open the days between now and Monday in the hope that the Chrysler Corp. management will see the wisdom avoiding the regrettable neces sity of a strike deadline," Wood stock said. Co-Operative Fertilizers Ltd. Western Co-Operative said the cost of natural gas, a prime ingredient in amonium nitrate fertilizer, is the main factor in determining the production cost of its product. The fertilizer costs $3.26 a ton to produce from its Calgary plant, but total cost increases to $14.80 if the product is shipped to Winnipeg. With raw materials piped from Alberta gas fields, the same fertilizer can be manufactured in Winnipeg for $6.34. Any increase in the cost of natural gas to the firm could further diminish the market area it could reach from Calgary. The board is hearing submis sions on an application by Canadian Western Natural Gas Co. Ltd. to increase its rate by 13 per cent in 91 southern Alberta communities. If ap proved, the increase would raise the average residential annual bill to $115. Western Co-Operative asked the board to direct the gas com pany to publish the rates paid by all customers. At present, a few large in dustrial firms can negotiate special contracts for the supply of gas. Earlier at the hearing, a public utility' consultant said the present rate of return realized by Canadian Western is suffi dent to attract investors and raise capital. Western Canada bright spot in coal mining OTTAWA (CP) - Canadian coal production rose to 14.3 mil lion tons in the first 11 months of 1970, up by almost 50 per cent from a year earlier, the Dominion Bureau of Statistics reported today. Strong gains were made in Western Canada where coal is being mined to fill several long-term orders for Japan. Production in Nova Scotia and New Brunswick declined to 2.3 mil lion tons from 3.1 million in 1969. Imports rose only slightly in 11 months last year to 17.3 mil lion tons from 16.1 million in the same period of 1969. EDMONTON CATHOLIC SCHOOLS F. E. DONNELLY and H. M. MACDONALD will be at the Park Plaza Motor Hotel to interview prospective teachers interested in employment with the Edmonton Catholic School District beginning September 1, 1971 on the following dates: January 28th - 7:00 p.m. - 10:00 p.m. January 29th - 7:00 p.m. - 10:00 p.m. January 30th - All Day Interviews will also bo held at the University of Lethbridge on: January 28th - 9:00 a.m. - 5:00 p.m. January 29th - 9:00 a.m. 5:00 p.m. Edgar Bernstein of Washington, D.C., appeared as an expert witness for the city of Calgary which is opposing the company's application. A rate of return between 7.5 and eight per cent would be sufficient, he said, but declined to say whether an increase is justified. "If the board decided eight per cent is a fair return, and that requires a rate increase, then it should be granted." Under present regulations, Canadian Western is allowed a 7.75-per-cent return on its capital investment Mr. Bernstein disputed company evidence which stated a fair rate of return for a utility was between 8.75 and 9.35 per cent. The company had used two different methods to calculate future growth rates and in making its case gave "a good e x a m p 1 e . . . of picking and chosing data to support a preconceived end result." Potato futures WINNIPEG (OP) - There was only light trading Thursday on the Maritime potato futures market. Wednesday's volume of trade was four contracts. Open High Low Close Mar 2.57A Apr 2.70N May 3.00 3.00 Salesman Required Immediately! Arvagresstve salesman is required for permanent sales position with one of lethbridge's top dealerships. We offer you a wide range of quality products and heavy advertising to give you busy year-'round sales with such popular items as American Motors Automobiles, Jeep Trucks, Mobile Hornet, Travel Trailers and Used Cars. If you qualify we offer generous travel expenses, a profit sharing plan and other company benefits. Apply direct to UNITED MOTORS CO. LTD. Cor. 3rd Ave. and 3rd St. S. !ANNOUNCEMENT! UNDERWOOD McLELLAN & ASSOCIATES LIMITED W. J. Adams, B.Sc, P.Eng. Denis Cote, B.Sc, P.Enf. Mr. W. J. Adams, B.Sc, P.Eng., President of Underwood McLetlan & Associates Limited, has announced the election of Mr. Denis Cote, B.Sc, P.Eng., Vice-president and Secretary of Underwood McLellan & Associates Limited and subsidiary companies. Associated with the Company for 10 years, Mr. Cote will continue as Manager of the Company's Calgary operations. Mr. Cote Is past-chairman of the consulting practice committee of the Association of Professional Engineers of Alberta, and is Chairman of the Calgary Separate School Board.