Lethbridge Herald, The (Newspaper) - June 4, 1974, Lethbridge, Alberta
Tuesday, June LETHBRIDGE B.C. to boost royalty rate on timber tenure VICTORIA (CP) Legislation which would greatly increase the British Columbia government's take from forest operations on crown land held by long term tenure was introduced in the provincial legislature Monday by Bob Williams, minister of lands, forests and water resources. The Forest Amendment Act would empower the cabinet to set the royalty rates based on the appraised value of the timber, replacing the existing system which is set by statute royalties based on a fixed dollar charge for each grade of timber. About 16 per cent of the total wood harvest in B.C. is on land held by tenures which would be affected by the proposed amendments. Eighty per cent of the 1.7 million acres of forest land under old tenures is held by the five largest forest companies in B.C. Macmillan Bloedel, Crown Zellerbach, B.C. Forest Products, Canadian Forest Products and Rayonier Canada Ltd. The legislation would move the government toward the stumpage appraisal system recommended earlier this year by a three task force on crown timber disposal. The task force headed by Peter Pearse, a University of B.C. economics professor, AII parties share inflation causes MONTREAL cians of all parties are partially responsible for inflation and they should work honestly with business and electors in finding a cure, Keith Rapsey, retiring president of the Canadian Manufacturers' Association, said today. In a luncheon address, Mr. Rapsey blamed politicians for massive increases in govern- ment spending which he said feeds inflation and for allowing "the kind of growth of union power which has made genuine free collective bargaining a dead letter over many vital areas of the economy." "The fundamental question now is whether the politicians in this country and in the other major industrial countries will have the intestinal fortitude to give the leadership that is he said. He called upon all candidates in the coming federal election to tell voters whether and how they will try to curb government spending and lay the basis for stable prices in the years ahead. "I am asking them for a new approach whereby a broadening of priorities does not simply mean determining which areas should get more resources, but rather the realistic exercise of choosing those activities that should get less of our resources." Mr. Rapsey said efforts by business to curb inflation in- clude new investment and higher output to increase the supply of scarce goods. What business wants of gov- ernment, he said, is less inter- vention in the private sector and a turning away from pro- grams like wage controls that have proved historically to be ineffective. He defended corporate profits by saying that they make up eight per cent of gross national product even though they are at a cyclical peak. Petrosar plant project benefit to Sarnia area BRIGDEN, Ont. (CP) The general manager of Petrosar Ltd., which plans to build a petrochemical plant in this area south of Sarnia, told an B.C. gas export to U.S. higher DAWSON CREEK, B.C. (CPi Despite last September's crisis in British Columbia natural- gas production created by the watering-in of three wells in the Beaver River Field, B.C., exported more gas to the United States Pacific Northwest last year than in 1972. J. F. Caplette, a director of the B.C. Petroleum Corporation, said Monday. He said in a speech to the B.C. Chamber of Commerce convention this fact was little known to the public. He contrasted it with an equally unknown 50-per-cent cutback in deliveries to the same area by El Paso Gas Company from its San Juan basin fields in the southwest U.S.. a reduction he said was not mentioned although B.C. drew criticism for reducing, exports. Mr. Caplette traced the brief history of the B.C. Petroleum Corporation and its producing on short notice a report on supply conditions. The report, he said, came out before the unexpected B.C. shortage, the latest Arab- Israeli war. the global oil crisis, and the sudden appearance of a vast number of agencies on the energy scene. Ontario Municipal Board hearing Monday that the development would have far- reaching benefits. Douglas F. Brown said the project would attract industries including tire, packaging, clothing and steel "and most of the products that will be made up are in short supply." In addition to the Petrosar project, Union Carbide, a part-owner of Petrosar, has announced it wants to build a polyethylene and petroleum coke plant costing millions, using some of the output of the Petrosar plant. Zoning changes would be required to build both plants. The Petrosar site would encompass about acres and the Union Carbide project about acres. The hearing, which continues today, was ordered following objections to the -locations of the plants, which originally were to be built in nearby Corunna. Crop seeding in province progressing CALGARY (CP) Improved weather contributed to rapid progress of seeding and threshing in some parts of the province, the Alberta Wheat Pool said Monday in its weekly crop report. Most of the progress was reported in north-central, northern and Peace River areas but frost was reported in central regions and snow along the foothills. WE HAVE MOVED BURROUGHS BUSINESS MACHINES LTD. Are Now Located At No. 4 LOWER LEVa-FROFESSIONM. BUILDING Corner of 4th Ave. and St. South FOR SALES OR SERVICE PHONE 327-7577 Postal P.O. Box 416, said in a report tabled in the legislature last March that the appraisal system would be more flexible than the fixed royalty system and would ensure that rates charged would be adjusted as the value of wood moved upward or downward during the term of the harvesting contract. The Pearse task force said statutory, royalties were last revised in 1968 and timber values had risen considerably since then. Under the existing system the average charge for 100 cubic feet of timber cut on old tenures is compared with the charge of for 100 cubic feet of timber cut on other crown land subject to stumpage fees. The government also introduced companion pieces of legislation Monday which would amend the Logging Tax Act and the Income Tax Act. The Logging Tax Amendment Act would reduce the provincial tax on logging income to 10 per cent from 15 per cent and would bring the provincial definition of logging income in line with the federal definition. Mr. Williams said outside the legislature this would eliminate the need for companies to keep two separate financial accounts for the different levels of government. An amendment to the Income Tax Act would allow companies to deduct from their provincial income tax one third of the logging tax paid under the Logging Tax Act. Currently, logging companies are only allowed to deduct 12-50ths of the logging tax paid. Mr. Williams said the cabinet would not accept the task force's recommendation that the new royalties be effective Sept. 30 because forest service officials need time to appraise the timber on the land given in tenure early in the century. He expected the new royalties would be set sometime next year. The resources minister said the government would not adopt all the recommendations of the Pearse report, opting for a more flexible position. While he couldn't determine the full impact of the legislation introduced Monday, Mr. Williams estimated provincial revenue from the planned changes at million a year. Because of deductions from other taxes, the cost to the companies would be about million annually. Timber rate hike no surprise VANCOUVER (CP) Officials of three of British Columbia's giant forest industry concerns said Monday night they were not surprised Resources Minister Bob Williams has decided to increase royalties on old forms of timber tenure. "It doesn't surprise said Robert G. Rogers, Crown Zellerbach Canada Ltd. president. "We have been expecting it; we just didn't know in what form. "It's going to hit the five big companies and it's really an expropriation of assets." Mr. Rogers said changes in the logging tax which will allow offset of that tax against the federal income tax were welcome. Peter Bentley, Canadian Forest Products Ltd. executive vice-president, said the industry would have to see the regulations before the implications of imposing a sliding stumpage appraisal rate instead of a set royalty could be commented on. "If the government doesn't recognize in the appraisal formula prepayment which has been made to the crown on these old forms of tenure, then the government is selling something twice and penalizing those who tried to protect themselves." said Mr. Bentley. "It's vindictive and unjustified." Ken P. Benson. B.C. Forest Products Ltd. executive vice- president, said the new system might put the forest industry in the same position as the mining industry which writes off the new royalties against federal income tax, which the defeated Liberal government budget would have disallowed. Officials of MacmiUan Bloedel Md.. the company which will be hardest hit by the new system, and Rayonier Canada Ltd. were unavailable for comment. The Herald- Business Stocks Miscellaneous Vancouver, Calgary, Montreal MIDLAND DOHErtTY LIMITED WESTERN 6.00 AND 4.00 Afton Albany Foods 3.35 Alta East Min 1.00 A Pfd 50.00 Yukon 7.12% Ashland STOCKS BP Gas Trk A 13.00 Brenda Gas Trk Pfd 55.50 Cda Nat Gas 17.87V4 Cdn Ex Metro 5.25 Cdn Nat Gas 8.50 Cdn Ind Gas and C Gas 11.12% Cdn Long and C Gas B Pfd 20.00 Cdn Gas Trans 10.00 Chieftan Pipe 29.75 Dome A Pfd 35.50 Pipe B Pfd 31.75 Fort Pipe War 3.55 Giant Trans 20.25 Gibraltar Trans War 2.75 Gt Gt Cdn Oil -39 Lochiel Oils .03 Lytton Continental .02 Noble Warner .27 North Cdn Numac Oil Pancdn Explorations .25 Pan Norsemines 1.34 2.15 .58 Place Varden .20 Res. ..11 Ranger Mines 2.21 Scurry .06 .08% Standard 1.87 Total Copper 6.00 Ulster United Brewing 4.50 West Industries .10 West 1.62 Petroleum .33 Acres Pete. .14 Explorations .70 BC Sugar C Int'l Res .65 Block FUNDS Cdn Pac Inv A Cdn. Compound 5.42 5.84 Carling O'Keefe A Cdn. Dividend 5.63 6.12 Carling O'Keefe B 2 Con. Ventures 2.95 3.21 Comm Cap Growth Fund 4.22 4.64 Crestbrook Special 2.14 Falcon Invest Fund 4.42 4.85 F and M Trust Mutual 4.62 5.07 Investors 5.50 6.04 Home Oil Invest Stock Fund 4.13 4.54 Home Oil Fund U.S. 9.69 10.62 Hud Bay Pacific 4.46 4.68 Hud Bay In Shares 2.72 Hugh Russell C Equity 5.93 6.52 Husky Growth Fund 10.69 11.68 Husky Oil B Mutual 5.10 5.58 Husky Oil D Accum 5.47 6.01 Husky Oil E Growth Fund 2.77 3.05 Interprov Pipe Resources 4.06 4.46 Interprov Steel Pipe Kaiser Cdn. 4.92 5.41 N.W. Growth 4.14 4.55 Kaiser Res Growth 3.76 4.13 Loblaw Co C Mutual 6.63 7.29 Magnasonics Pacific 6.01 6.26 Templeton Growth 7.24 7.93 Pac West Accum 4.08 4.48 Pe-Ben Oilfield Savings 7.08 7.79 Rainer 5.41 5.94 Royal 5.22 5.72 Toronto mines., industrials (Supplied by Richardson Securities of "Canada) Forest Advocate Sugar A Valley Ind Ind O'Keefe Cellulose Can. NW Power Canada Credit Gas Pfd Central Ind Marconi Vickers Cons. Coin Bathurst Dickenson Gas Denison Seagrams Bridge Dome Discovery Textile East Stores East Pete Mobile First Cdn Oil Giant Motors Lakes Paper Oil Hudson Bay Hydra Sid Iron Walker Erie Joliet Oil A Kerr Key Nickel Pipe Lake Grp A Langis Inn Madsen Accept Malartic Martin Douglas A A Intern Nu West Homes Ferg New Bloed New Corp A B Pine Cent Placer Corp Pax Exp. Co Quebec CDA Rio Roman Sears SherriK Can A Steep A Tek Corp Grp A Mm Pipe United Can Pipe Western Carbide WH Copper Gas WngW Oil Siscoe Mlg Yellowknrle OTIS A Foods A Else 11.12% 16.50 19.62% 13.00 8.50 2.60 6.25 S.12% 22.37% 2.30 9.25 20.25 3.20 16.00 16.25 14.25 27.00 27.50 15.12% 37.50 24.25 10.75 14.87% 26.37% 30.00 3.45 7.62% 49.75 20.62% 28.12% 15.00 5.62Vr 47.12'A 23.50 28.87% 27.75 27.62% 15.75 6.87% 13.50 15 12% 2.05 4.90 8.00 3.35 6.62% 11.50 17.50 Z7.00 48.75 22.50 19.50 6.87% 11.12% 11.50 13.50 5.75 11.75 14.75 7.62% 11.00 31.00 -.3.00 38.00 9.75 13.12% 29.62% 19.25 S.12% 10.00 5.37% 6.25 18.75 22.00 23.25 3.35 300 Aigoma Steel Aloo Ind Janrock Agra Ind Sell Tel Btascan A BC Tel 27.SO 14.50 625 15 87''. 52.00 Can Imperial Montreal Nova Soolia Royal Tor Dom BANKS 1675 3275 5250 36.75 New York (Supplied by Richardson Securities of Canada) Arm T T Anaconda Bclh Steel Duppnl General GuH M Harvester Kpnn Copppr Monlgcimpry Ward Spars Exxon Texas GuH Texas Co Wn 4650 21 75 30 00 1687% 34 00 163 75 52 ?5 20 00 26 12% 36 50 ?600 67% 7487% 27 50 26 67 1337% 15 B71 e 16 25 li S Sfeei 42 75 Gen Tel Else 2275 TORONTO AVERAGES ?0 Industrials. 151 up 23B 20 Golds 68 down 2 20 10 Base Melsls 80 97 tfown 17 15 WcMern Oils 190 ?2 up 5 27 Vt'lumf 663 ?0" NEW YORK AVERAGES ?0 industrials 629 00 up 7 It 20 Rails 167 24 up 2 76 15 UHMies 74 77 up 36 65 ?50 94 up 2 S6 E Market prices up sharply in light trading on TSE TORONTO (CP) Prices on the Toronto stock market were sharply higher in light midmorning trading today. The industrial index was up 1.40 to 190.63 and western oils 4.07 to 189.02. Golds fell 2.29 to 411.79 and base metals .19 to 80.95. Volume by lla.m. was 000 shares compared with shares at the same time Monday. MONTREAL (CP) Prices were generally higher in light trading on the Montreal Stock Exchange today. Volume at 11 a.m. was 298.800 shares compared with 94.300 at the same time Monday. The industrial index rose 3.26 to 202.50. the composite 2.4H to 193.04, utilities .82 to 130.19 and papers .32 to 120.14 while banks fell .14 to 247.81. Dominion Textile rose 3i to Genstar to SIS' z. Gulf Oil Canada V2 to and G and H Steel to while Corpex fell 'j to S5. Among speculative issues. Royal Agassiz rose five cents to S1.30 after trading 2.500 shares. VANCOUVER (CP) Prices were up in light trading Monday on the Vancouver Stock Exchange. Volume at the close was 2.399.680 shares. in the industrials, Canterra was up .02 to .50 on 8.000 shares. Newmark was up .04 at SI.09 on 6.200 shares. Block Bros, was down .05 at on 5.100 shares. Bell Canada was up .25 at on 5.000 shares. Key was unchanged at .11 and Thermo Flex was unchanged at .35. Advances outnumbered de- clines 180 to 63 with 147 issues unchanged. Pacific Pete was up to Dome Pete 1 to Home Oil A 1 to Vz, Imperial Oil A to and Dominion Textile to Prado Explorations gained 20 cents to Canada Northwest to Pan Market trends In the mines. Consolidated Fortune Channel was up .08 at .52 on 451.100 shares. Senesta was up .06 to .50 on 329.000 shares. Henrietta dropped .05 !i to .36 on shares. Sonic Ray rose one cent to .21 on snares. Consolidated Fortune Channel Warrants A were up .05% at .25'i and Ramco was up .02 at .42. In the oils. Vargas was down half a cent at .07 on shares. Davenport was up .07 to .60 on 12.100 shares Payette was up one cent to .22 on shares. Seneca Developments rose .02 to on shares. Cop-Ex was down .02 at .38 and August was down 02 at .32. NEW YORK (AP) The stock market added to Monday's gains in active trading today as hopes continued on Wall Street that interest rates at last were turning downward. The a.m. Dow Jones average of 30 industrials was up 8.61 at 829.87. and gainers led losers by close to six-to-one on the New York Stock Exchange. Tandy Corp. was the most active NYSE issue, down 'j at Ocean to United Canso to and Total Pete to Livestock Calgary CALGARY (CP) Receipts to 11 a.m. Tuesday from the Calgary public stockyards totalled about 170 head, mostly cows and replacements. Trade was dull on cows and moderate on replacements. There were no slaughter steers on offer and a few slaughter heifers sold steady. Cows sold under pressure at prices SI to lower. Heifers Al and 2 42.25 to 43.90. Cows Dl and 2 28 to 31. D3 25 to 28, D4 20 to 25. Replacements cattle were mostly- fleshy, shortkeep steers selling steady. There was insufficient good stock calves on offer to establish quotations. Good feeder steers more than pounds 46 to 47.70. There were no hogs sold to 11 a.m. Metals LONDON (AP) Monday's closing metals bid-ask in pounds sterling a metric ton: silver in pence a troy ounce: Copper Spot 1.035-1.040: futures -984-985 Tin Spot 3.690-3.710; futures 3.735 Lead Spot 235-237: futures 242-243 Zinc Spot 595-600; futures 565-570 Silver Spot 192-193; 3 months 197.5- 198 Gold futures WINNIPEG (CPi Gold futures. U.S. funds, Winnipeg Commodity Exchange close Monday. Jly 74 155.00B; Oct 74 160.80: Jan 75 166.20B: Apr 75 171.50B: Jly 75 177.00A. Fridav's volume: 86 contracts. Gold prices LONDON (API Closing gold prices in U.S. dollars an ounce: London 154.50 Paris 160.00 Frankfurt 154.90 Zurich 158.00 Hong Kong 151.09 Beirut 4.933 a Beef futures WINNIPEG (CP) Live beef fulures close Monday. July 48.30: 46.60B: Nov Jan 47.70N. Kridav's volume: No contracts. Earnings By THE CANADIAN PRESS Bartaco Industries Ltd.. sis months ended March 31. 1974. S83.438 loss. seven cents a share. 1973. H rents Billtnore Industries Ltd.. three months i-ndcd March 31 1974. 1973. 532. H2 Central Patricia Gold Mines Ltd.. year ended Dec. 31: 1S73. S3G6.822. 15 cents a share. 1972. 31 cents. Chimo Gold Mines Ltd.. year ended Dec 31 197.X SK1.867. 26 cents a share: 1S72. S140.S80. 44 cents. Conwcsl Exploration Co. year cndt-d Dec. 31 3S73. loss. rents .isharr. 1972. S39.1 17. (wo cents. Copperficlds Mining Corp.. six months oidcd March SI W4. SR53.3fi5. 13 conls a 1973. loss, one cent Exquisite Form Brassiere (Canada) Ltd.. nmr months cndi-d .11 1S74. SXB.WO. 30 cents a share. 1973. SHl.rtXi. -V) cents Foor Seasons Hotels Ltd.. three irxrnlhs endt-d March 31 ]974. rmls a share. 1973. 44 ffn1.s Giant Mavcot Minrs I-Id.. months Marrti 1974 Inss. 1973 prolil ]v.r ihm- nwnitu t-nnr-rj Marrh M 1974 JUa.ftin IS M-riU a W-S. S47.WK1. live cents Rancer Oil (Canada iJli.. WITH- Tnnmhi. rndrd Marrh 31 1974. seven i-fTiU 1973. OfKI, today for a look at the future.