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Lethbridge Herald, The (Newspaper) - March 26, 1974, Lethbridge, Alberta Supply warning accompanies energy green light 5PF CARRIITHRRfi By JEFF CARRUTHERS Herald Ottawa Bureau OTTAWA In three related the National Energy Board has in effect given expansion plans by the country's petrochemical industry in Ontario and Alberta an-important green light while at the same time has warned of possible tight supplies of natural gas derivatives in Canada as early as 1980. The. NEB has approved an application by Dow Chemical of Canada Ltd. and Dome Petroleum Ltd. to build a twin pipeline system from Alberta through the U.S. to Sarnia, to carry ethane and ethylene, reliable government sources revealed here Monday. But as a part of" the same NEB decision to be made public April 1, following the federal-provincial premiers' meeting on oil pricing, the NEB has only given partial approval to two associated applications by Dome to export large quantities of propane and ethane to the United States during the next 15 years via the proposed new twin pipeline. Stating that the supply of ethane will not be certain past 1980, the NEB has decided to grant Dome a license to export ethane for only six years, rather than the 15 year period requested by Dome. And again citing problems of "uncertainty of supply" in the near future for propane, the NEB has decided to grant Dome an export license only for a further five years, instead of a further 10 years as requested. Dome now has a license to export propane to the U.S. for five years via the Inter- Provincial pipeline four years of which remain according to the NEB. The NEB decision, originally scheduled to be announced last Friday, will be announced publicly "after April Energy Minister Donald Macdonald said Monday outside the Com- mons. In an interview, he explained that Friday's announcement was postponed because the government felt it would be "unwise" to reveal such a decision relating to Canada's controversial and political oil price and supply question before Wednesday's meeting of provincial Pjpniers- with Prime Minis- ter premiers .ingll attempt to decide what to oil prices.in (panada after the voluntary price freeze on domestic .crude ends April 1. According to the NEB deci- sion, the board allowed for the existence of at least two petrochemical plants" in Canada, with the second coming into operation about 1977. Sources said this refers to the SOAP petrochemical plant proposal for Sarnia, which is reportedly not too far from the beginning of construction, and the more recent Dow Chemical proposal to build a petrochemical complex at Fort Saskatchewan" Herald VOL. LXVII 87 ALBERTA, "TUESDAY, MARCH 26, 1974 10 Cents 24 Pages CIVIL SERVICE GROWS EDMONTON (CP) number of civil servants in Alberta grew to in December, 1973, from in December, 1971, says Provincial Treasurer Gordon Miniely. He made the figures available following his recent tabling in the legislature of civil service statistics. The government departments with the greatest growth were agriculture, health and social development and public works. Employment in provincial crown boards and other agencies rose to from g big beef n allege -up By RIC SWIHART Herald Staff Writer after PMs fuel talk By DAVE BLAIKIE OTTAWA (CP) Prime Minister Trudeau, fresh from talks with Alberta's Peter Lougheed, meets Saskatchewan Premier Allan Europe watches for ship attack Blakeney today to discuss future domestic oil prices. But there are no indications that the talks with the western premiers will provide any final answers to the problem of how much to charge for oil. THE ASSOCIATED PRESS Reliable sources in Tel Aviv said today European security agencies have been warned that an international group of terrorists may be planning attacks on naval installations or ships in their countries. The sources said 14 Palestinian guerrillas and other extremists have received training in marine sabotage in Australia, and had intended to leave for Europe early this week. The sources said Australian authorities are trying to prevent their departure. Meanwhile. Syrian Defence Minister Mustafa Has says Syria "has no choice but to in- flict as many losses as it can" on Israel. Border fighting between Syria and Israel continued for the 15th day today and a Syrian communique said: "Our positions are dealing fierce blows to the enemy." There were no casualty re- ports and Israeli authorities said their forces did not return Syrian shots. Maj.-Gen. Tlas said Monday night that "Syria will not let the enemy rest on any part of occupied territory." Although Syria accepted the initial appeal by the United Nations last October to stop fighting, there has been no formal disengagement of Israeli and Syrian troops similar to the accord reached on the Israeli-Egyptian front. Mr. Trudeau and the Alberta premier talked for 1V4 hours Monday in preparation for a meeting Wednesday of the prime minister and all 10 provincial premiers. But neither gave any indication afterward that a breakthrough is imminent on the oil-price question. "I honestly don't Mr. Trudeau said in reference to Wednesday's meeting, the Policemen get Classified.......20-23 Comics Comment........4. 5 District......... Family........ 16. 17 Local News___ 13. 14 Markets...........19 Sports, Theatres........ 7 TV 3 LOW TONIGHT 2f w HIGH WEDNESDAY WINDS WINDS, SUNNY. you smoke too CARDSTON (Staff) council wasted little time passing a request for two armless chairs for the town police officers Monday night. Coun. Vern Quinton explained the policemen were worried about catching their revolvers on the arms of their old' chairs. "They might shoot themselves in the Coun. Quinton said. Ont. awaits oil word TORONTO (CP) Ontario will not take "violent exception" if the price of domestic oil goes to a barrel when the price freeze is lifted next week. Premier William Davis said Monday. But Mr. Davis said in the legislature he had no idea what the federal government Oil had been frozen_____ barrel but the price freeze is to be lifted on April 1. second national energy conference since late January. "If it (the conference) doesn't reach an agreement, that means legislation. But I shouldn't even be saying that You'll say, 'aha, you're threatening the provinces'." Premier Lougheed was equally nonconunital with re- porters, but indicated that a temporary solution is the best that can be hoped for Wednesday. Major energy related ques- tions such as western economic development and freight rates still require detailed negotiation, he said. "That sounds like anything we do Wednesday is still going to be a temporary answer. I've never felt there would be a long-term agreement reached this quickly." The conference comes four days before the scheduled March 31 end of a national vol- untary freeze on petroleum prices. The freeze has kept oil pro- duced and used in Canada at about a barrel since September while international prices have climbed to more than a barrel. Both Saskatchewan and Al- berta, which together produce about 96 per cent of all domes- tic oil, have called for major increases when the freeze ends. Ottawa has agreed that some increase is necessary but wants it held to a minimum. Prime Minister Trudeau, except for his reference to legislation, did not elaborate on what Ottawa plans if the conference ends in a deadlock. The possibility of federal legislation to break a deadlock has been mentioned by Energy Minister Donald Macdonald, who was in charge of negotiations until Mr. Trudeau took over after Jhe January conference. There has been speculation tiiat Ottawa, in return for con- cessions on other western eco- nomic issues, might .persuade all parties to accept an interim price increase to about a barrel. Confusion As cars go whizzing by at 40 m.p.h. on Scenic Heights pedestrians are supposed to make their way across at least according to the sign. However, there is no crosswalk. Maybe that is why directions to the hospital are close by. Some Southern Alberta cattlemen charge that Lethbridge retail stores mark up beef prices almost 40 percent. Taking a page from the federal government's Prices ReviewrBoard, the cattlemen obtained a special chart showing the weights of various cuts of beef obtained from a single were able to calculate that once a steer is sold for slaughter, middlemen make almost as much money from the animal as the producer received for it. Using a carcass cutout demonstration chart compiled by the Alberta Beef Cattle Performance Association May 8, 1970, the cattlemen were able to4ist 19 categories of meat cuts. Using the percentage of meat in each category as weighed out during the actual demonstration, the cattlemen could account for all the saleable meat that would be sold over the counter in any retail grocery store. Amount calculated All bone, fat and cutting loss was also accounted for. Relating all this information to direct prices that were being charged March in Lethbridge stores, the cattlemen calculated the amount of money that would change hands between the producer, the the store and the consumer. Using in theory the same basic 928-pound animal that was cut up during the cattlemen found that a producer would have received per pound from the packing house. This was the prevailing live market price for Cattle.. So the producer received paid by the packinghouse. The packer processes the animal, including kiMing, skinning and gutting The final product from the packing Bouse is a dressed carcass which would weigh 538 pounds, a normal dressing percentage of about 58 per'-cent. The packing house sold the carcass for per hundred pounds. A 538-pound carcass would have cost a retail store about March 1. In addition to the gross profit of for the carcass the packing house was able to sell the hide, entraifs, blood and manure for further processing. So the packer received paid by the retail store. T. Carcass cut Gas price may jump Canadian Western Natural Gas Go. Ltd, has applied to the Public Utilities Board for an 'increase in natural gas rates in Southern Alberta. The company said in a press release increased operating costs due to inflation, and high interest rates made an increase necessary to maintain the standard of service and provide extension of facilities. A hearing is- expected this spring. The last rate increase was in 1971. About town Cribbage player Harvey Dittbener getting a perfect hand during a noon-hour game Cardslon mayor Lloyd Gregsm assuring Coun. DIM CaMwell that he was listening with an open mind even though be bad already made up his mind. Once in the store, the carcass is cut up, in a way similar to the carcass cutout demonstration. The cuts of meat are then sold over the .counter to the consumer. By computing the individual prices for the 19 meat cut categories and the weight of meat in each category, the gross profit of the store was calculated. Using local retail beef prices and the weight calculations from the chart, the grocery store sold the carcass for 26 Since the store paid only for the carcass, it realized more than it paid the packing house for the carcass. This value gave the store a mark-up of 38.83 per cent of the total the consumer paid for the carcass. The breakdown of. meat cuts, weight of the cuts calculated from the chart and local retail beef prices for those .cuts, the amount paid by consumers for each category of meat cut can be computed. Sample prices The carcass includes round steak. 40.62 pounds. per pound for j value of rump roast. 32.88 pounds, per pound for a value of heel of round, 6.88 pounds. per pound for a value of sirloin tip, 21.76 pounds. per pound for a value of Sirloin steak. 31.62 pounds. per pound for a value of T-bone steak. 11.76 pounds, per pound for a value of porterhouse steak. 14.38 pounds. per pound for a value of flank steak. 3.5 pounds. per pound for a value of Club steak. 11.88 pounds. 19 per pound for a value of cross rib roast. 29.62 pounds. per pound for a value of chuck roast. 52.38 pounds. per pound for a value of round bone. 15.62 pounds. per pound for a value of Rolled brisket. 25.50 pounds, per pound for a value of prime rib (seven 35.88 pounds. per pound for a value of short ribs. 19 pounds. 99 cents per pound for a value of shank (centre 7.62 pounds. 99 cents per pound for a value of Shank (knuckle 7.62 pounds. 29 cents per pound for a value of boneless stew. 21.76 pounds. per pound for a value of boneless beef. 57.12 pounds. per pound for a value of The total weight of retail meat in the carcass was 446.7 pounds for a value of There was 42.88 pounds of bone. 45.24 pounds of fat and 1.24 pounds lost in the cutting process. Food sting cools By JUDE CAMPBELL Herald Staff Witer Lethbridge consumers had some of the sting taken out of their grocery bill this month, and came out ahead of last month, according to The Herald regular food price check. A Herald survey of 54 items showed that 34 had remained at the same price registered in February. Eleven necessities had gone down in price and only nine took a step up. Of those, meat accounted for six decreases, one .increase and two meat' items remained the same. Most meats showed anywhere from a four-cent to 16-cent decrease, while a pound ;of bjicon went down 20 cents as compared to last month's price. predicted last month in the city by Dr. Crordon Burton of Claresholrii a member of the federal government's Food Prices Review Board, bread prices, fresh, fruits, some vegetables and sugar have gone up. At first glance, January and March prices of potatoes were the same. But in January bought a 20-pound sack while this month it can only buy a 15-pound sack. Sugar prices have been climbing steadily since the first of the year, with a 10- pound bag costing compared to in January and in February. Flour has increased by 10 cents for a 20-pound bag. Dairy products, including eggs, milk and cheese, had fixed prices, while a pound of butter went up by a penny. Beef up, down Lethbridge beef prices during the past year have been riding a roller coaster, with all the accompanying ups and downs. Ground economy beef selling at 79 cents one year ago, went to 89 cents in ay. 99 cents in August and September. in January. last month and back at 99 cents last week. Round steak sold at the middle of last Britain taxes wealthy By KEVIN DOYLE LONDON (CP) The minority Labor government today slapped heavier taxes on British consumers and announced that a special wealth tax will be imposed later Ihis year. Smokers, beer-drinkers, whisky buyers, gamblers as well as the candy-and-ice cream crowd will have to pay more as a result of a budget which warned of grave economic problems ahead. The basic income tax also will be increased as the government seeks higher revenues to restrain swiftly rising inflation while paying out more in .social benefits, including >igher food subsidies and larger old-age Denis Hcaley, chancellor of the exchequer, said details of the wealth tax will be outlined in a paper next summer and made retroactive to today. The Labor party has pledged to impose special taxes on the wealthy to provide more bene- fits for other Britons. in March, went down to at the end of March, up to in April and May. in June, jumped to last month and last week was Chuck steak stayed steady at 95 cents March through April, sold at 99 cents in May and June, was in August. in September. in .January, JJ.35 last month and went down again to last week. Round roast was selling at S3 55 in September. in February and went up to last week Chock roast sold at 89 cents per pound last March, went down to 79 cents in May. up to in August and back down to 99 cents in September and January. February prices were at 25 and last week Jbey were ;