Lethbridge Herald (Newspaper) - March 15, 1971, Lethbridge, Alberta
20 - THE LETHBRIOGE HERALD - Monday, March 15, 1971 McLEAN RETIRES - At 72, Cyrus McLean, chairman of the board for the British Columbia Telephone Company, is retiring after 57 years of service. He is seen here with two prized possessions in his apartment - one of the first automatic telephones which has been converted into a lamp "but still works" and one set from the Kaguyak Telephone Co. which uses animal symbols on the dial instead of numbers and letters to moke it easier for Aleuts on Alaska's Kodiak Island to use the system. Venezuela to hike levies on oil tax Public rejection has no effect Government's passion for white papers unchanged OTTAWA (CP) - The government's ardor for white papers has not been cooled by public rejection of some of them. About the time Finance Minister Edgar Benson was saying again that his white paper on tax changes would never reach tiie stage of legislation intact, External Affairs Minister Mitchell Sharp was saying that the government may produce a white paper on energy policy. Mr. Sharp spoke as. acting prime minister in the context of Arctic oil pipelines. On Thursday night Energy Minister J. J. Greene an- Crude oil in Pembina to be re-estimated By BUD JORGENSEN Canadian Press Staff Writer . Venezuela will increase the tax it levies on crude oil Thursday and the result will be more expensive gasoline and fuel oil for Canadians. Venezuela has been Canada's major offshore source for crude oil and petroleum products. The government of the South American country has an-nounced its "tax-reference price" for crude oil will be increased an average 59.5 cents to $2,575 a barrel. This is not the price the oil companies pay for Venezuelan oil, oil company spokesmen say. It is the price CALGARY (CP) - The Alberta oil and gas conservation board is reviewing its estimates of the amount of crude that can be recovered from the province's largest oil field, Pembina. The move was taken at the request of Imperial Oil Ltd. which wants the board to reduce its estimate of recoverable oil in the water-flood area to 1,037 million barrels from 1.400 million barrels. But Amoco Canada Petroleum Co. Ltd. and Mobile Oil Canada Ltd. countered with in-terverJtions which urged the conservation board to raise its estimates to 1,811 million barrels. The difference in amounts recommended by Imperial and Amoco-Mobile would be worth No bonuses for Chrysler executives DETROIT (AP) - Chrysler Corp.'s annual proxy statement showed here that the third largest United States auto firm had skipped incentive bonus payments to its top officers for the second consecutive year. The statement, issued in advance of the firm's annual shareholders' meeting April 20, reported that board chairman Lynn A. Townsend was paid $200,000 in salary and fees in 1970, the same amount he got in 1969. Virgil E. Boyd, vice-chairman, continued at a $175,000 level Li 1970 while John J. Ri-cardo, Chrysler president since Jan. 8, 1970, had his salary increased to $166,667 in 1970 from $120,000 in 1969. The proxy statement read: "No awards of incentive compensation was made for 1970." This was because the firm's financial picture was not strong enough to meet the qualifications under which the firm's bonus system becomes operable. LONG GESTATION The female lobster carries the developing eggs for 10 to 12 months before the young hatch out. meals for. pennies t (feametles ^"MACARONI """" &0?J$?ij <""""''� the government estimates the oil companies should be getting for the oil. In computing the tax, Venezuelan authorities allow the oil companies to deduct expenses and royalties from the tax-reference price and the balance is taxed at a rate of about 60 per cent. If expens.es have not gone up, the change in the reference price will mean an increase in taxes of about 36 cents a barrel -60 per cent of 59.5 cents. There are 35 gallons in a barrel. Dominion Bureau of Statistics figures show that 61 per cent of petroleum imported during the first half of 1970 came from Venezuela. During the same period of 1969-when oil sources in Nigeria were cut off by a civil war-about 67 per cent of total imports came from Venezuela. About half of Canada's petroleum consumption is of imported products. During 1969, the Canadian industry produced about 1.1 million barrels a day and exported about half that production to the United States CANADIAN CONSUMPTION In the same year, Canadians consumed about 1.4 million barrels a day. Basically, domestic sources supply Ontario and the West while offshore supplies go to Quebec and the Atlantic provinces. W. O. Twaits, chairman of Imperial Oil Ltd., says raw material costs account for 75 to 80 per cent of the operating costs of a refinery. If, as it appears on the surface, the average cost of Venezuelan crude has gone up about 36 cents a barrel-or about one cent a gallon-it appears that cost will be passed directly to the consumer. The oil company people are reluctant to talk about prices and will only offer estimates of average prices on an off-the-record basis. They agree that western Canadian crude costs about $3.52 a barrel delivered to Toronto-arsa refineries. Various sources place the price of Venezuelan crude delivered to Montreal at between $3.15 and $3.35 a barrel. This includes increases in transportation costs that went into effect during 1970. Retail prices have traditionally been less east of the Ottawa River valley and it seems that the price differential is narrowing as the major oil-producing countries increase their prices. Some people connected with the industry believe prices across Canada will be equalized. Another group in the industry believes the price differential will remain and connected with this view is the expectation that prices of western Canadian crude will stay ahead of offshore prices. Some expect price increases before the end of the year. CNIB threat alleged by union TORONTO (CP) -A union representing 750 employees of the Canadian National Institute for the Blind across Ontario claims the institute has threatened to put 35 blind people out of work. Most of those involved operate small tobacco and candy stores One of them, John Colling, 44, is on the bargaining committee of the Ontario Union of Blind and Sighted Merchants, formed a year ago. . He said in an interview Friday the CNIB made the threat of layoffs during negotiations with the union. Paul O'Neil, CNIB public relations director, said the 35 operators could keep their subsidized shops unless the institute has to meet the union's "unreasonable demands." Most union members make the provincial minimum wage of $1.50 an hour or $60 a week, although salaries range up to $100 a week for canteen managers. The union said the institute's last offer was for 15 cents an hour more as of April 1 when the provincial minimum wage rises to $1.65 plus another 10 cents in November. The union wants at least 15 cents more than that. $2 billion at present wellhead prices. This production would riot be immediate, however, and would be spread over several years. The most important effects of the board's decision will be on producers from the field and the rest of the province because of Alberta's proration system. Under the system, a company is allowed to produce oil in relation to the board's estimate of its recoverable reserves. If the board cuts its estimates, companies working out of the field will have to reduce production while those elsewhere in the province will be allowed increases to meet the province's commitments. Amoco and Mobil are the largest of the dozen or so companies producing out of Pem- bina, about 50 miles southwest of Edmonton, with Imperial a more minor operator. But outside the' field, Imperial's production exceeds that of the others'. In the end, it would benefit from any reduction. In presenting their arguments to conservation board hearing last week, Amoco and Mobil claimed they used more accurate information to estimate the percentage of oil that could be recovered. All the companies agreed there was between 7,106 million and 7,900 million barrels of oil in place but Imperial estimated only 18.9 per cent was recoverable while Amoco maintained more than 30 per cent could be removed economically. The board has given no indication of when its decision will be prepared. nounced that the government has started negotiations for purchase of a major interest in Home OU Ltd. of Calgary, in danger' of falling under American ownership and control. Will this mean two overlapping white papers? Revenue Minister Herb Gray has been working for months on a white paper on foreign ownership policy. Prime Minister Trudeau said last week in the Commons that this policy will be made known "in due course." The problem of Arctic oil pipelines includes that of possible pollution by line breaks. There is a possibility of a white paper on the environment and the fight against pollution. This would mean triple overlapping white papers on energy, foreign ownership and the environment. RULE BY WHITE PAPER "A white paper government," Eldon Woolliams, Conservative MP for Calgary North, has taunted in the Commons. Mr. Benson says there will' still be comprehensive changes ART DIETRICH DENTURE CLINIC Certified Denial Mechanic Metropolitan Bids. 328-4095 in the income tax system-expected in May-but the opposition does not know how many features, if any, of the white paper will be retained. Other events in the chequered career of Trudeau government white papers: The white paper on Indian policy was scrapped outright after the Indians raised strong objections. The white paper on foreign policy was so long delayed that Mr. Trudeau went ahead with major foreign policy changes without waiting for it. The biggest change was cutting Cana- dian military forces In Europe by half and taking them out of the NATO front line. A white paper on defence is still in the works. One of the main features of the white paper on income security-a cutoff of family allowances at the $10,000 salary level -is under review. The most successful white paper so far has been that on unemployment insurance. 11 was translated into legislation last week. The white paper on bankruptcies is also producing legislation SAVE top 60% ON MUFFLER REPLACEMENTS WE HAVE: A $9.95 MUFFUR FOR MOST CARS FREE INSTALLATION 10 MINUTE INSTALLATION LIFETIME GUARANTEED MUFFLERS FREE INSPECTION AND ESTIMATES ALL AT IIUUTB UFFLER 509 6th Avenue South INSTALLATIONS Phone 328-8134 Head lice epidemic checked GRANDE CACHE (CP) - An epidemic of head lice which affected a large percentage of this community's 3,000 population has been' brought under control, Dr. Helmut Kohlhepp of Edson, said. Dr. Kohlhepp, Edson medical health officer, said 190 of 700 Grande Cache school children were infected last week and 11 public health workers were sent to help the resident public health nurse in the community 220 miles west of Edmonton. The staff now are treating many of the population and "we should have it almost eliminated within a month," Dr. Kohlhepp said. He said the source of the lice had not been determined but they are not carrying contagious diseases. Treatment is by medicated shampoo which has replaced DDT as the common treatment, he said. NOTICE TO NON-RATEPAYER RESIDENTS TAKE NOTICE THAT persons' resident in the City of Lethbridge who are not registered property owners but who are Canadian Citizens or British Subjects of the full age of nineteen years and who will have resided in the City of Lethbridge or any area annexed to the City for a period of twelve months which will immediately precede the 15th day of October 1971, may make application at the Assessment Department in the City Hall, Lethbridge to have their names placed on the List of Electors during the period from the 1st day of January to the 22nd day of September 1971 during normal working hours of each day except Saturday, Sunday and any Public Holiday. ARTHUR L. LARSON, REGISTRAR New cigarette contest gets Commons play OTTAWA (CP) - Barry Mather (NDP - Surrey,) an avid crusader against smoking, e s t i mated yesterday that a person would have to smoke a pack of cigarettes a day for 243 years to collect enough coupons to get a color TV set offered by the makers of Mark Ten cigarettes. He asked Justice Minister John Turner in the Commons whether he was aware of the offer, which requires 88,000 coupons for the TV set. His question drew laughter from the MPs but Speaker Lucien Lamoureux ruled it E ATO N 'S More Leisure, More Pleasure With MAYTAG Maytag Automatic Washer Maytag "Porta-Washer" Convenience is what makes this Maytag washer so special. It is only 2 feet wide, 15 inches deep and 30 inches high, so you can store it anywhere in the house. A regular load takes four minutes to wash beautifully clean and one minute to spin dry. Features twin rotating impellers. Great for apartments, trailers. In White. 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