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Lethbridge Herald, The (Newspaper) - June 12, 1973, Lethbridge, Alberta The UtHbrid0e Herald VOL. LXVI No. 154 LETHBRIDGE, ALBERTA, TUESDAY, JUNE 12, 1973 PRICE: TON CENTS THREE SECTIONS 44 PAGES Tight money plan denied OTTAWA (CP) The latest Bank of Canada inter- est-rats increases doss not mean the government has embarked on another tight money program to control inflation, Prime Minister Trudeau said Monday. He told the Commons the increase to 6Vi per cent from per cent is designed to moderate the "re- markably-high" growth rate in bank loans and the gen- eral pace of economic expansion. He also said the increase, the third in two months, Is to prevent United Stales borrowers from taking ad- vantage of what would otherwise have been substantial- ty lower rates than those available in the U.S. It was not government policy to make domestic rates parallel at all times with U.S. rates but the dif- ference in the levels was a factor that had to be considered. The Bank of Canada increase was announced Sun- day after the U.S. Federal Reserve Board Friday had raised its prime rate to 6% per cent from 6 per cent. Both rates went into effect Monday. They apply to the loans made by the Bank of Can- ada to thj chartered banks and serve as a signal that interest rates should increase or decline. David Lewis, New Democratic Party leader, said chartered banks already have raised their prime lend- ing rate to 7% per cent. The prime rate is that charged a bank's best cutomers. Conservative Leader Robert Stanfield asked wheth- er the government has any evidence that the increase will reduce demand for bank leans which have been growing at a rale of about 30 par cent since the start Of 1973. Mr. Turner told the Commons recently that he had urged chartered banks to give special consideration to small businesses and regionally depressed areas in making loans. Sidewalk squad Retirement Is a time to kibitz, to let the world walk by, but not without comment. And what better place to while away a few sunny hours and exchange the news of the day than a downtown storefront bench? These unidentified gentlemen, whether tell- ing stories of the Lethbridge of another era or reflecting on the changing face of the city today, seem to find the location an ideal spot. Stam denies wrongdoing WASHINGTON (AP) Mau- rice H. Scans, blocked in an ef- fort to avoid Watergate testi- mony now, today denied knowl- edge of the wiretapping raid, political sabotage, or violation of any campaign laws. What bungalow really costs OTTAWA (CP) Ever wonder what that modest 000 bungalow will have cost you when you're finished pay- ing for it? Eldon Woolliams (Calgary the Conservative ur- ban affairs critic, gave an ex- ample to the Commons Mon- day night. A simple bungalow in many urban centres now costs 000 or more, he said. If you put down and carry a mortgage over 40 years, your total cost will be: at six-per-cent in- terest. at nine per cent. at 10 per cent. The current average inter- est rate for mortgages is 9te per cent on existing homss. The former secretary of com- merce and fund-raiser for Pres- ident Nixon conceded only that there might have bssn "some unintended technical violations'' of the new disclosure law. Earlier, the committee heard a former Nixon campaign worker testify that he had been told that John Mitchell, while still attorney-general, had been shown filmed comes of correspondence from the cam- paign of Senator Edmund S. Muskie, at that time front-run- ner for the Democratic presi- dential nomination. In court Judge John Sirica cleared the way for the com- mittee to take testimony, under immunity, from two key wit- nesses, John Dean, ousted White House counsel, and the former Nixcn campaign deputy, Jeb Stuart Magruder. ASKS DELAY Stans is tinder indictment in New York in connection with a secret 1972 campaign contribu- tion, and his lawyer asked the Senate Watergate committee to postpone his testimony until after the trial. Meanwhile, a lawyer for Pat- rick Gray, former acting direc- tor of the FBI. said Gray has agreed to testify without im- munity in any Watpraate criminal trials. The hearings the mselves came under attack Monday from Vice President Spiro Agnew. He said in St. Louis that he believes they are block- ing the search for truth, bes- mirching the innocent and "can hardly fail to muddy the waters of justice beyond re- demption." July 2 ruled legal holiday in Alberta EDMONTON (CP) July 2 will be observed as a legal holi- day in Alberta because Domin- ion Day falls on a Sunday this year, the provincial manpower and labor department said Mon- day. The department said in a statement that July 2 will be observed in all cases where employers have an agreement to give employees July 1 off. Prumlieller inmates, officials worry "Opinions threaten prison By WARREN CARAGATA Herald Staff Writer con- cern over the operation of fed- eral prisons may destroy the effectiveness one ot the country's best medium-security institutions. Officials and inmates at Drumheller penitentiary are worried that if, as expected, the federal government moves to tighten up its prison and parole systems, the program and atmosphere which has been six years in the making at the prison will be thrown out with the bath water. "Drumheller is an institution with the most success in terms of programming and we would put up a fight "if cutbacks were made, said Pierre Jutras, director of Drumheller institu- tion, and a recently appointed member of the three-man com- examining security in Quebec penitentiaries. An increasing crime rate, numerous prison breaks, and a few, but highly publicized, crimes committed by paroled convicts, are stirring public comment that the prison sys- tem is too "soft." "It's an unfortunate reaction when, because something hap- pens somewhere else in Can- ada, the whole system suffers. However, we depend on public Mr. Jutras said. The staff, he said, is very concerned about public opinion trends which could jeopar- dize the work they are doing. "This place could be turned into a maximum institution in less than 10 one prison official said. An indication of Drumheller's success at rehabilitating con- victs is that their recidivism (the term used to describe prisoners released from a pris- on who end up back in jail) rate of about 25 per cent is 50 to 55 percentage points below the national average. Since the penitentiary opened in August, 1967, there have been about 24 escapes, but Kenneth Lowden, assistant di- rector of security, said there is no real security problem. "The orogram here is good and it acts as our security. Things could be tightened up a lot but I wouldn't be too happy about that. Why do it if you don't have Mr. Lowden asked. If they find it necessary to tighten up at Cowansville (a medium-security penitentiary in Quebec which has" been plagued with "why do it A larger report on the Drumheller peni- tentiary is featured in Chinook, enclosed wiih today's copy of The Herald. Youth falls feet to death BANFF (CP) A youth in his 20s died Monday of multiple in- juries suffered when he fell about feet down the east- ern face of Tunnel Mountain near here. RCMP said today the youth, whose name was withheld, lost his balance and fell from the viewpoint at the summit of the mountain overlooking the town- site. Sten and heard About town TJEWILDERED .Georgia Fooks, about to prepare food for a reception for 200 persons, discovering her family had inadvertently haul- ed all the makings to the sanitary landfill Sgt. Ray Marnoeh saying how much nicer it would to be at the lake than at his desk job as he went through the mo- tions of catching a fish. Boom thins out jobless ranks Consumer price index inches upward again By GARRY FAIRS AIRN OTTAWA (CP) Consumer prices inched upward again in May although the cost of meat, fish and poultry fell for the first time since November, Statistics Canada reported today. Over-all costs rose seven- tenths of one per cent, which is more than usual for May but below the IJ-per-cent increase reported for April. One-third of the May increase was attributed to the impact of the higher Ontario sales tax, raised to seven from five per cent. Food represents 25 per cent of the consumer price index and the food index in May stood at 157.4 points compared with 156.2 in April and 137.4 in May last year. The consumer price statistics are based on costs for goods and services which form a large part of the spending of typical families. Figures are combined regionally to produce a national average. The over-all index for May is 148.4. meaning that items cost- ing in base year for the today on average. FOOD COSTS UP Food costs generally contin- ued to rise but did not over- shadow other areas as in recent months. for home consumption rose eight-tenths of one per cent and cothing by the same fig- ure. Since May last year, all prices have gone up generally by 7.3 per cent. Prices for individual foods presented a varied picture, ranging from an increase of 50 per cent in oniin prices be- tween April and May to a 5.5- per-cent decline in pork prices. The meat, fish and poultry category showed a drop in prices of 1.9 per cent, the first decline since last November. Beef prices fell 1.3 per cent in May. Cereal and bakery products on the whole dropped in price by four-tenths of one per cent. Price increases for the month included: vegetables up 10.7 per cent; fruit up 6.7 per cent; eggs up almost one per cent, dairy products up 1.7 per cent; sugar up 3.2 per cent. The cost of restaurant meals rose 1.2 per cent. For the 12-month period, food at home was up 15.1 per cent and restaurant meals were up 11.3 per cent. Strike talks favored MONTREAL (CP) Air Can- ada said today it would wel- come further mediation in its contract dispute with the Inter- national Association of Machin- ists The airline's statement came in reply to telegram from John Munro, federal labor minister, asking both sides if they would resume talks. The IAM earlier told Mr. Munrp it is prepared to'resume negotiations which broke off last week. Yes Pralte, Air Canada chair- man and chief executive officer, said in a telegram to Mr. Munro the airline would "wel- come further mediation and will continue to bargain in good faith and be as flexible as realistically possible Despite the prospect of re- newed talks, the IAM said it will continue its series of rotat- ing 24-hour strikes against the airline with the next coming sometime after 8 a.m. EOT Wednesday. An IAM spokesman said the union expects to hold strikes on a daily basis starting Wednes- day. Since the strikes began June 2, they have been called for every day except June 3, June 10 and today in airports across the country. A total of 757 machinists went on strike in nine cities Monday. OTTAWA (CP) A buoyant economy provided a significant more jobs to Canada's unemployed in May even though efforts were started by the government to dampen in- flation resulting from the boom. May's jobless total dropped for the fourth successive month to a total of according to Statistics Canada estimates, while the seasonally-adjusted unemployment rate declined to 5.2 per cent. The large decline in unem- ployed from April's total of 000 occurred even though the Bank of Canada had increased its interest rate on loans to commercial banks on April 9 to 5V4 per cent from 4% per cent. The April interest rate in- crease, designed to curb lending and stem the tide of inflation, has been followed by two other raises. The April seasonally-adjusted unemployment rate was 5.4 per cent, while that of May, 1972, was 6.2 per cent. RATE DOWN The actual unemployment rate in May stood at 5.3 psr cent, one per cent below the April rate of 6.3 per cent and dramatlbally below the 6.2 per cent of May, 1972. With many university and col- lege students entering the work force for the summer and the return to work of persons en- gaged in jobs that are not per- formed during the winter, the estimated labor force climbed by to a total of In May. 1972, it was The improved jobless situ- ation in May was apparent in all five regions of Canada, with all areas reporting decreases in the actual number of unem- ployed. Quebec and Ontario benefltted most, with Quebec's jobless to- tal dropping to from in April. Ontario had unemployed, down from in April. REGIONAL TOTALS DOWN In the Atlantic region, there were estimated unem- ployed, down from in April, but more than the total jobless for May, 1972. Unemployment in the Prairies dropped substantially to in May from in April. Last year the May total was In British Columbia, the num- ber of jobless was down from in April and consid- erably below the May, 1972, to- tal of The biggest increase in the employed labor force occurred in the age group between 14 and 24 with more in this cat- e g o r y working up from No gasoline shortage sighted in Montana By JIM GRANT Herald Staff Writer 1 The constant fear of running out of gasoline before locating an operational service station need not worry motorists visit- ing Montana during June and July, government sources and service station managers in the state say. Tourists may not have to worry about the American gasoline shortage hindering their motoring in Montana dur- ing the next month and a half, but the situation may be quite a problem by summer's end if oil and gasoline suppliers con- tinue to limit wholesale gaso- line purchases, The Herald was told. At the present time there isn't a limit on the number of gallons allowed an individual per service station stop and there is no evidence of a sub- stantial price hike in retail gasoline, says an official for the State of Montana. PLENTY OP GASOLINE Scoft Warden said in a tele- phone interview Monday some 24-hour service stations have had to cut to 12-hour days and a few small independent deal- ers have closed down because of restricted wholesale pur- chases, but there still is "plenty of gas available at service sta- tions." There are no "keep your tank above half full" warnings being issued to motorists in Montana. There have been warnings is- sued in some Western and East- ern states to remind motorists to keep their gasoline tanks full so then- vehicles won't run out of gasoline on the busy free- ways. Mr. Warden estimates the state could handle a five per cent increase in tourism over last year without creating a shortage of gasoline in the state. Of the 10 service stations contacted by The Herald in Great Falls, only three had al- tered services to the public be- cause of a gasoline shortage. All 10 stations contacted had increased the price of both top- grade and regular gasoline from one to three cents per gal- lon this month. Regular gasoline being sold from service station pumps in Great Falls varies from 36.9 to 39.9 cents per gallon, sources said. Last month gasoline whole- salers put a maximum limit on the number of gallons each ser- vice station is allowed to pur- chase based on last year's sales. Inside Classified ___ 20-23 Comics.......... 18 Comment......4, 5 District 3 Family 16, 17 Local News 13, 14 Markets 19 Sports 10-12 Entertainment 7 TV 6 Weather 2 LOW TONIGHT 45; HIGH WED. 75-80: SUNNY ;