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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - January 25, 1975, Lethbridge, Alberta Fuel price hits airline profit By PAUL GESSELL The Canadian Press A big splash of red has cov- ered the 1974 balance sheets of airlines which are facing 1975 with more than mild trepida- tion while their employees face the possibility of layoffs. On an international level, the skyrocketing price of fuel, which accounts for 60 per cent of airline operating costs, was largely responsible for profits plunging to embarrassingly low levels. A Montreal spokesman for the International Air Tran- sportation Association (1ATA) said costs of the 110- member airlines rose by an estimated billion during 1974 from fuel bills alone. Although fuel prices are not expecfed to increase drastically again this year, airline officials ar- throwing out words like "cautiously op- timistic" and "slightly pessimistic" when forecasting financial returns in 1975. On a national level, Air Can- ada has predicted a million deficit for 1974. Air Canada's fuel bill, said chairman Yves Pratt of Montreal, exceeded that of the previous year by more than million or 83 per cent. "At stake in this situation is the continued health of the en- tire air transport he said. Estimated costs for Air Canada in 1975 were hard to predict because of uncertainty in the price of fuel and because the majority of the airline's labor contracts, covering almost employees, expire this year. The higher fuel costs of 1974 prompted fareyincreases, which in turn, reduced traffic in some areas. Air Canada an- nounced this week elimination of 145 of its flights for the winter season. The flights, mainly short-hauls in Ontario and Quebec, also included some European runs. The airline also announced it was encouraging employees to take leaves of absence without pay to avoid possible layoffs. A Toronto spokesman, Douglas Port, said the com- pany has offered its reservations-and passenger agents an additional pass to any destination Air Canada flies for a leave of absence of two weeks or longer in the next three months. However, Air Canada, un- like other Canadian and some major American airlines, was not contemplating layoffs, Mr. Port said. A spokesman for CP Air said 10 pilots were laid off this week and by the end of April 44 of the company's 600 pilots would be jobless. He said planned- route ex- pansions and traffic flows were below expectations and necessitated the layoffs. The airline has not yet re- leased its 1974 financial state- ment, but another spokesman expected the profit margin to be down considerably. His predictions for 1975 were not optimistic because fuel prices, continued infla- tion affecting over-all operating costs and upcoming labor negotiations could easily play havoc with finances. Pacific Western Airlines an- nounced in Edmonton this week that during the next 18 months it will gradually lay off an undetermined number of its 300 pilots. The airline, which serves Western Canada and the Northwest Territories, also planned to lay off 12 to 15 of its 245 stewardesses in February. In a recent statement, Nof- dair, which serves Ontario, Quebec and the Northwest Territories, said it anticipated a reduction of revenue in 1975. "Revenues have been below budget for the past few months and particularity in October and November...a reaction to the current Nordair said. CHEAP for CASH! Department Store Closing All fixtures and equipment for sale, most in new condition. J. A. Wilson display system. assorted shelving units, office equipment, uprights, wall stand- ards, hooks, brackets, display material, pegboard sheets, etc. Sell complete or part. CONTACT: STEDMAN'S DEALER STORE BOX 1199, FERNIE, B.C. PHONE 423-6113 Saturday, January 25, 1975 THE LETHBRIDGE HERALD 29 Newsprint avoids Kenora dump A PORTER PUSHES A BARROW AT COVENT GARDEN Barrel bustle disappears from world renown market LONDON (CP) The bus- tle is gone from Covent Garden Market, where fruit, vegetables and flowers were bought and sold for more than 300 years. Its million million) annual business now is transacted on a new, modern site 2Vi miles away on the south side of the Thames. But the historic buildings remain and most of them will be preserved for the benefit of future generations. The move was prompted by growing traffic problems in the area around the market. Even in the days when fruit and vegetables were brought in and out by horse-drawn carts and pony wagons there was a lot of congestion. Porters and laborers pushing hand-barrows or carrying stacks of baskets on their heads thronged the streets, jostling and pushing. In more recent years giant trucks carrying the tons of produce dealt with daily in the market created virtual chaos and the change of site became inevitable. The market has an interesting history. Back in the 13th century, there was an enclosed garden on the site belonging to the Abbot of Westminster and known as the Covent Garden, from which the market took its name. About the middle of the 16th century the property passed to the Earl of Bedford, to whom King Charles II granted the right to hold a market for flowers, fruit and vegetables. The area wasi conveniently situated between the old City of London and Westminster. The district became Americans pessimistic over future of 'livestock war' fashionable and many of the houses were owned by the gentry and the nobility. The coffee houses in the neighborhood were fre- quented by the great poets, writers and wits of the day. In the heart of Covent Garden there is the Royal Opera House, while on the wast side of the square is St. Paul's as the Actors' Church because of its long association with the theatrical and artistic professions. Three hundred buildings, in- cluding the church, are to be preserved but Covent Garden Market as such will vanish, along with the delicious smells of the vegetables and the bright colors of the fruits from areas as far afield as Africa, the Mediterranean and the West Indies. KENORA, Ont. (CP) Waste newsprint, which previously would have been consigned to garbage dumps, has been incorporated into a recycling process at the On- tario Minnesota Pulp and Paper Co. Ltd. plant. The waste paper, collected by Boy Scouts and other groups, is sold to dealers who have the equipment to bale it in the required unit size. The paper arrives here in pound bales from Winnipeg and Minneapolis. The process, which is designed strictly for news- print, begins at this northwestern Ontario plant with the removal of the paper from railway cars by a fork lift machine. The paper then enters the production mainstream. Primary treatment of the paper involves subjecting it to solution of hot water and caustic soda. Next the moist pulp is pumped over a screen to remove ink and other foreign matter, and mixed with ground wood. Eventually the pulp finds its way into the paper machine operation for the finished product. Bob Birch, resident manager of the mill, said the recently initiated recycling process reflects the com- pany's concern about the quality of the environment. He said every ton of waste paper that is recycled leaves one cord of wood standing in the bush. The scheme is plan- ned eventually to handle 40 tons of waste paper a day. The Kenora plant, a sub- sidiary of Boise Cascade Corp. Ltd., produces as much as 800 tons of high grade newsprint each day, with most of its production shipped to the United States mid-west. Both ground wood and chemical pulps used in the manufacturing process are made from pulpwood harvested in the surrourtding area. The mill has been producing' newsprint since 1924. All the wood used in the manufactur- ing process arrives at the mill by or water, in the form of eight foot logs. Auction help Bob Balog is chairman of the 1975 charity auc- tion for the mentally re- tarded. The eighth annual event takes place at p.m. on Feb. 3 in the 4-H Building at Lethbridge Exhibition Grounds. Simi- lar sales will be held in Fort Macleod, Taber, Pic- ture Butte and Bow Is- land. Donations for the auction are now being accepted. More than 40 auctioneers contribute to this fund-raising project. 'Franchise' Mexican imports direct from Mexico to you. Pot- tery-vases-statuary- shields, etc. High mark- up, good volume, ideal additional line for estab- lished retailer. required for initial stock and 500 sq. ft. of floor space. BoxllZLethbridgilUnld H. H. Smith Ltd. Customs Broker COUTTS Home Office Phone 344-3822 WASHINGTON (CP) Five months after a "livestock war" broke out between Canada and the United States, the two coun- tries continue to restrict each other's exports and American authorities are pessimistic about any improvement in the situation. One senior U.S. agriculture department official said this week the prospects don't look good" for an end to the mutual quotas on meat and livestock. Nor are there any im- mediate plans for consultation between the two NEW HOME CERTIFICATION PROGRAM OF ALBERTA -APPOINTMENTS Rudy H. Scheibelhofer, Chairman of the Board, Is pleased to announce the following Executive appointments effective January 2, 1975 E. William Boley is appointed Executive Director. Mr. Boley has acted lor many years as Consultant to the residential building industry. A former manager of Atco Industries Relocateable Homes Division, ho has served as President of the Calgary House Builders Association and is Chairman of inter-Faith Housing in Calgary. Prior to his appointment as Executive Director, he aclivc fis President ol E.W. Boley Sons Ltd. Mr. Boley will administer the New Home Certification Program and provide liaison between the home buying public, government departments and the Housing and Urban Development Association, Alberta Council. John W. Price is appointed Manager. Registration and Conciliation. Prior to his new appointment, ho was Security Investigator for the Alberta Securities Commission for eight years. He has also acted as Claims Director lor the Relail Credit Company and is a member ol the Society ol Industrial Cost Accountants. His dulies will include registration of builders Ihe enrollment of certifiable homes under the warranty program and conciliation in warranty matters. Mr. Price is married with one child, and has been a resident ol Calgary for 18 years Ernest Radke is appointed Manager. Finance arid Insurance. Mr Racfke was formerly Chief Accountant tor IKO industries in Calgary Prior to that he was Controller and Manager ol Administration for Borger Construction in Calgary and was Accountant for Poole Construction in Calgary. His extensive experience in financial and insurance matters will be a valuable asset to the New Home Certification Program ol Alberta Mr. Radke is married with Ihree children and has resided m Calgary for 30 years. The New Home'Certification Program of Alberta is a non-profit organization lorrned to administer a new home warranty program that will be available to Alberta home buyers through registered builders. Builder applications lor registration are currently being processed and new home certification will start in the next lew weeks governments. High-ranking representatives from Ottawa sat down with their opposite numbers here Nov. 27, dis- cussed the problem in detail and agreed to meet again in "several weeks." Eight weeks later, no new meeting has been held. Agricultural experts here say the root of the problem remains are too many cattle coming to market in the United States, driving prices as much as a hundredweight below the price level on the more stable Canadian market. Canadian authorities say that if they ended their quotas on U.S. beef and cattle im- ports, an influx of American meat would drive down Cana- dian prices and force Cana- dian cattle growers to the wall. But as long as the Canadian quotas remain in effect, U.S. officials reply, the retaliatory American quotas will stay. Philip Mackie, acting direc- tor of the U.S. agriculture department's foreign livestock division, said Wednesday consumer demand for the U.S. has been sagging lately, possibly as a result of the general economic recession. "It looks as if our cattle prices aren't going to come Mackie said. "We see a large supply of cattle all through this year and demand is off." Mackie and others believe that if cattle prices in Canada and the U.S. come together, the reason behind the quotas would disappear. Few experts see that happening in the im- mediate future. PACKED IN Jamaica is square miles, roughly the size of Con- necticut. With a population of two million, it is approximate- ly 146 miles long and 51 miles wide. WORKERS' COMPENSATION BOARD ALBERTA Supervisor's Safety Training Course LETHBRIDGE SCANDINAVIAN HALL February 4 and 5 TWO FULL DAYS a.m. to p.m. EACH DAY Some of ihe topics covered will supervisor's 'responsibility for accident prevention work hazard analysis and work simplification com- mucations and job instructional training. Further information may be obtained by phoning The Workers' Compensation Board, Lathbridga, 328-2040. Be to regitter tarly. CITY of LETHBRIDGE TRAFFIC PATTERNS ON NEWLY OPENED SIXTH AVENUE RIVER CROSSING AND NTERCHANGES OFFICE OF ENGINEERING DIRECTOR JANUARY 24, 1975 ;