Lethbridge Herald, The (Newspaper) - November 17, 1973, Lethbridge, Alberta
i Probe seeks to unravel stock deals EDMONTON A public inquiry into the opera- i tion and financial failure of Cosmopolitan Life Assurance Co.. P.A.P. Holdings Ltd. and six related companies opens Monday under district court Judge Roger Kerans. The inquiry was ordered in June by Alberta Attorney- General Merv Leitch after repeated requests from shareholders who alleged a million stock swindle through irregularities in the companies' business-deal- ings. Paul Steffanson of chairman of a shareholders' steering said in an interview Friday the case involves more than shareholders in its parent and Canamera Enterprises Sioux Holdings Rocky Holdings Ltd.. Seaboard Life Insurance Balmoral Developments Ltd. and Columbia Beneficial Holdings Ltd. Most of the Cosmopolitan and P.A.P. shareholders are from while the bulk of the rest live in British he said. The B.C. government announced in June it had begun an exchange of information with Alberta on the operations of the insurance companies. B.C. Attorney-General Alex Macdonald said shareholders had approached Commerce Minister Gary Lauk with complaints about the companies. Mr. Steffanson said shareholders in the two provinces were concerned about moving from one corpora- tion to moneys moving from one bank to stock issuance of stock without any moneys paid for it and constant fights between civil servants creating expense and damage to 6Lacked assistance9 He added that the Alberta Securities Commission wouldn't give Cosmopolitan and other companies ade- quate and delays in the commission's work were responsible for to shareholders. The Crown has appointed Edward an Ed- monton to represent shareholders in the said Mr. Steffanson. A Calgary J. C. has been appointed general counsel for the the first phase of which is expected to last two weeks. The called under Alberta's Public Inquiry can subpoena witnesses and require sworn testimony. No charges can be laid as a result of the but a report can be issued recommending court action. Cosmopolitan ceased doing active business late in 1970. A liquidator was appointed for the company in 1972. by the Alberta Supreme Court after Mercury Investments which holds shares in said some of the shareholders' money had been lost. In a written application to the Mercury said 612 of shareholders' required by provincial legislation to be put in approved was actually put into speculative investments and subsequently lost the liqui W.B. Me an chartered said in June that all Cosmopolitan policy holders were 'fully protected by reinsurance schemes when the company was liquidated. J'Sold insurance Nixon submits to questioning on scandals i said the worked out by the Al- berta'insurance the Alberta Supreme Court and involved the selling of most of Cosmopolitan's in- surance to Seaboard Life Insurance Co. of Vancouver. The president of Allarco Developments Dr. C.A. Allard of has said Cosmopolitan may have lost the neighborhood of in an unsuccessful attempt to purchase North West Financial Corp. of B.C. He said he believed the money was advanced in the form of option but when Cosmopolitan officers were unable to raise enough money to complete the pur- chase the option money was lost. Seaboard Life was acquired by Cosmopolitan in the 1960s and Allarco bought Seaboard's controlling shares when Cosmopolitan's attempt to purchase North West Financial fell said Dr. Allard. A former president of Albert Jaasma of was found guilty in September and fined on two charges of not being a registered broker or invest-' ment dealer he traded in securities between January and and June 20 and Aug. jij The Cosmopolitan group was the second case of an Alberta insurance company experiencing serious finan- cial problems in the last several years. S Rocky Mountain Life Insurance Co. of Calgary was taken over by the provincial government in g when the company seemed headed towards bankruptcy jj which would have resulted in losses to many of its Si policy holders. Martial law rules Greece ATHENS Greece was placed under martial law after it became clear that the storming of Athens Polytechnical Institute by police and the army had not ended student demonstrations. As the army assumed wide- ranging President George Papadopoulos told the country in a radio address that he had been forced to declare martial law to restore order following what He described as aharchial demonstrations in Athens Friday. Papadopoulos spoke after StwtandhMrd About town JAMbS PICKLES say- ing his name is spelled like on the Roberta Vufenee getting a 19 hand in a cribbage game with Gary EmmcUwmp and then being skunked by him in Jie next game. the army had been called in to crush demonstrations by thou- sands of students who had been demanding more academic and political freedom and calling for national support for the over- throw of his regime. The ouster early today of the student occupation force at the technical dur- ing which many students were beaten up by quickly brought on an angry demonstration by about students who shouted at They referred to the death during demonstrations Friday of four identified tentatively today as three Greeks and one female Egyp- tian student. When the students renewed their demonstrations today a score of tanks rolled into the centre of the city firing their guns into the police fired warning bursts from automatic weapons and the state radio announced the martial law decree. KEY Fla. In his first major public move since promising to meet Watergate charges head-on. President -Nixon faces questioning tonight from American and Canadian new- spaper editors before a national. television-radio audience. All three U.S. commercial TV networks scheduled live broadcasts of Nixon's hour- long appearance at 5 p.m. MST at the convention of The Associated Press Managing Editors Association Press Secretary Ronald Ziegkr said Nixon would take questions on any subject from some 400 editors attending the conference at Disney World near Orlando. Watergate and related mat- ters seemed certain to dogiinate the unusual news but Ziegler said he hoped other would covered. It is one of three public ap- pearances in four days on Nix- on's trip south. Since mounting a campaign to restore his credibility and demonstrate he not violated his trust.'.' Nixon has held private meetings with Republicans and selected southern The APME appearance will mark Nixon's first grappling in public with Watergate- related questions since his counter-offensive began. Nixon flew to his home here Friday afternoon following a tinal session with House Republicans. the New York in an exclusive says President Nixon reportedly accused Archibald Cox Friday of having reneged at the last minute on a com- promise settlement of the Watergate tapes case. But the president's account of events that led to his dis- missal of the Watergate special prosecutor last month was challenged by Cox and ap- parently contradicted by puHished records of the un- successful effort to resolve the tapes controversy out of court. According to Rep. Charles W. Whalen Jr. who look notes which he said included verbatim quotes on Nixon's eighth and final Watergate meeting with members of congress the president gave the follow- ing explanation1 for ordering Cox's dismissal on Oct. changed his mind on Friday night because of lack of confidence in Senator Stennis. We did not know until Saturday be had changed his Sen. John C. had been chosen by the president to authen- ticate a White House sum- mary of the contents of nine tape recordings that were be- ing sought by the Watergate grand jury and the Senate Watergate Committee. The planned compromise collaps- ed when Cox refused to accept it and was dismissed. Cox. reached Friday by telephone in said that he had questioned Senator Stennis's integrity at His objec- tions to the compromise plan. Cox were spelled out in a memorandum to Richardson and a letter to Charles Alan the special White House counsel on the tapes case. The Lethbridae Herald VOL. LXVI 286 NOVEMBER 1973 40 Pages 15 Cents NO WEEKEND IN HERALD The Herald's regular Satur- day feature Weekend is not available to- day due to a strike by employees of the Montreal firm that publishes the colored supplement. Resumption of publication depends on the outcome of the strike. Oil price increases could be phased in Eerie glow That glow in the skies east of the city Friday was not a three- alarm fire but butane being burned off at an ashphalt plant two miles east of the Green Acres Drive In. The butane was used to heat ashphalt for paving during the summer months.The plant has been vacated and the butane was being burned off to clean the container for shipment north. Alberta asks Quebec tp join oil project EDMONTON The Alberta government proposed Friday that Quebec could help meet its long-term energy re- quirements by participating in the construction of an oil sands extraction plant in Northern Alberta. Quebec's participation in the development of Alberta's oil sand resources was one of several energy matters that JeanGilles Quebec minister of natural discussed during a three-hour energy meeting with two Alberta cabinet Don minister of intergovernmental affairs and William mines and minerals minister. Alberta offered to help Que- bec in the event of an oil short- age in Eastern Mr. Getty said following the meet- which both he and Mr. Masse described as a historica and successful meeting on energy matters. Mr Getty said Alberta had offered to supply as much oil as transportation systems could carry if Quebec faced an oil shortage this winter. Quebec currently depends on imported oil from Venezuela and the Middle East and part of this supply has been jeoprdized by Arab reductions. Mr. Getty and Jean-Guy Quebec's deputy minister of natural would not estimate how much oil Alberta might be called on to supply Quebec. Studies of available supply in Alberta and of'the the amount which could be carried through alternative transportation systems would have to be completed before detailed figures would become available. Mr. Dickie estimated that Alberta's current oil produc- about barrels could be increased by 100.000 barrels or more a day. Mr. Fredette said barrels daily would relieve a considerable oil shortage in but he did not know if that much oil would be re- quired. The question of oil pricing had been set to one side in at- tempting to meej Quebec shortterm energy re- quirements. Mr. Getty said. Quebec's participation in the developjent of Alberta's oil together with the extension of the interprovin- cial pipeline which currently carries oil from Alberta to is being considered to meet long-term oil requirements in Mr. Getty said. Mr. Masse said Quebec's participation in the oil sands had not been discussed in detail with but he said Quebec is seeking secure sources ot oil at the best possible price. Mr. Getty said Quebec might become a part owner in a future oil sands plant. Such a which could be owned entirely by governments or by government and could supply oil to Quebec. Alberta has already propos- ed that Ontario participate in oil sands development and Mr. Getty said similar proposals may be made to other prov- inces which require oil supplies. 'Next week let's try hijacking a Paddy.' Classified 32-36 Comics............27 Comment........ 5 Si District............21 fe Family.......24-26 Local News----- 20 Markets 29 Religion....... 11 Sports 12-15 Theatres......... 8 TV............... 6 Weather........... 3 LOW TONIGHT HIGH SUN. BRISK WINDS. Faisal firm on embargo BEIRUT The Leba- nese newspaper Al Anwar says King Faisal of Saudi Arabia is determined to con- tinue the oil embargo against the United States and says the decision is Only when Israel withdraws entirely from all the Arab regions it conquered in including the Arab sector of will the Saudi oil ban be the newspaper quotes Faisal as saying. President Nixon expressed hope in Washington Friday that the embargo might saying there was reasonable possibility that at .some time in the future .we can see some the Arab oil policy. Al Anwar said Faisal reiter- ated his determination to con- tinue the ban on oil shipments to the United States during a meeting Friday with former Lebanese Premier Saeb Salam in the Saudi capital. The king was quoted as say- ing he regards the United States as the only country in the world that can pressure Is- rael into a complete withdrawal America is Israel's only political backer and arms In a National Energy Board spokesman rap- ped U.S critics for what he termed unfair and about Cana- dian export restrictions on heavy fuel used for in- stitutional and industrial heating. He said nearly five million barrels was exported in the first nine months of 1973 to cities in the Buffalo-Detroit- Saginaw. com- pared with 4.1 million for all of 1972. EDMONTON Alberta is prepared to crude oil price increases to ease the impact on eastern consumers when the federal government's price freeze is lifted Feb. 1 Premier Peter Lougheed said Alberta is willing to see crude oil price increases phas- ed in over a period of time just as the province for natural gas. The province to sit down and discuss the possibili- ty of a staging-in system with Canada's Mr. Lougheed said during the taping of CTV's program Question to be snfjwji Sunday. -J In a subsequent the premier said the concept of staging in price increases was not a concession in the Alberta-Ottawa energy dis- pute jbut an indication of Albert's attempt to be He did not give details of any staged saying what Alberta would be willing to do would depend on what deral Energy Minister maid Macdonald proposes at the start of February. Timing of the increases would depend on the size of the differential between the price Alberta is getting for its oil and the price paid for foreign crude in Montreal. He added that other factors to be considered include whether the country is facing energy the extent to which Alberta's plans for a royalty revision and an energy marketing board have and the level of activity in the oil industry. Alberta to look at the market price at that date and determine whether the price reflects short-term supply dislocation or normal market The province does'not want to use potential energy shor- tages in Eastern Canada as a lever to raise Mr. Lougheed but he reiterated Alberta's position that it should not be asked to sell non-renewable at below fair value for a long period of time. there isn't a supply prob-' lem. I don't think Canadians should expect Albertans to sell their resources for an ex- tended period of time at below fair In the Syn- crude Canada Ltd. has been given another month to com- plete negotiations with the federal government on taxing arrangements covering a pro- posed oil sands plant for northeastern Alber- the provincial government said Friday. Bill Alberta mines said the participants in the Syncrude consortium and the Alberta government had extended the deadline to complete arrangements with the federal government until Dec. 16. Pipeline bill 'better late than never9 Alaska Gov. William Egan said Fri- day the signing of the Alaska pipeline bill opens the door for his oil-rich state to help fight the United States energy crisis. And Senator Mike Gravel said he ex- pects a challenge of the law from such a move would be a to the President Nixon signed the bill Friday and said it was three years late but better late than Egan said he hones struction can begin by next on'the billion which is due to be completed in 1977. The governor said the sign- ing the end of a long and vigorous struggle by Alaskans for development of the facilities necessary to begin moving our vast crude oil reserves to market to help meet our nation's critical energy The 789-mile project will employ an estimated said a seven- company group formed to construct it. That comprises about 20 per cent of Alaska's working force. Alaska's native peoples are pushing for 3.000 pipeline jobs. The state has been working on the assumption that for ev- ery pipeline job a related service created. position will be The legislature last week in- creased oil-production taxes 20 per cent and put a 290-mil- levy on the pipeline. When the pipeline and associated operations are ex- pected to more than double Alaska's property tax base.