Castlegar News August 23, 1967 SPECIAL PROVISION SET ASIDE By TORONTO (CP) — Ths Bash of Montreal wll set anlde bball sc wl gy be aryattbard amy dh oi World for those trios be Sh gesaeeh ot US valee Wt taal ena Asa result, the bank will report an estimated net loss in excess of $400 million for 1987. That is calculated by doubling the amount earned in the first half of the year ended April 30 — $166 million — and subtracting the special’ | provision. The bank will fund the special provision by taking $418 million out of its contingencies fund and $335 million from its retained earnings, bank spokesman Brian Smith said late Tuesday. Even though the bank records a loss for the year, it won't affect the bank’s dividend payments, Smith said. The special provision, which has been discussed for weeks by the banks and federal government officials, was formally announced pred by Michael -Mackenzie, the federal WULBE RAISED Mackenzie said the banks will raise their p Not to mention the 10 tele- vision cameras. Not to mention the in- treduction by Eleanor Mon- dale, whose father once sought the presidency, ser- “May I introduce a can- didate with the quiet de- meanor of a Coolidge, the animal magnetism of a Ken- nedy and with the peneety, of a Lincoln, a i from an average of about 15 per cent now to anywhere between 30 and 40 per cent. The Bank of Montreal was the first bank to announce its plans, said Smith, because it wants to reduce market speculation. “There's been a lot of speculationih the market and we feel it’s only right to give an early indication of what we're going to do,” Smith said. The bank chose 35 per cent because it believes that figure adequately represents how much less its loans to any of the 34 financially troubled countries on the superinten- dent’s list are actually worth, Smith said. “In management's opinion, this should preclude the necessity to set aside further substantial amounts on these loans for the foreseeable future,” the bank said in a news release. “Other things being equal, earnings in future periods should benefit from this step.” The mutual agreement between the banks and Mackenzie to increase the special provisions being set aside against the loans to those financially troubled countries was touched off by Citicorp, the U.S. bank with the largest Third World loans. In May, Citicorp suddenly set aside a reserve equal to about 20 per cent of its loans to less developed countries. TRIGGERS MOVE That move was triggered by Brazil's decision earlier this spring to suspend payment on its foreign debt, including $7 billion to Canadian banks, until its lenders agreed to a more fi Canadian banks had gradually been setting aside may shed but will never shred, a candidate who stands foursquare behind the values of life, liberty and the pursuit of din-din,” Mondale, an aspiring actress and rock 'n’ roll television show eed teas, told a Tuesday at the National Press Club. The Morris-for-President “campaign” is just that — a national advertising cam- paign put together by the New York agency Leo Bur- nett U.S.A. for 9-Lives, ma- ker of the cat food that bears the candidate's name. The ad campaign, with TV commercials parodying can- didates hitting the trail, is intended to run through election day —1988. —Morris’ platform: His catfood in every bowl and a satisfied cat in every kitchen. Tuesday's event had many of the trappings of a rea} political announcement — red white and blue bunting; con- fetti; campaign straw hats, provisions for several years and had an average of about 15 -bumper stickers and pins, per cent of the value of thier loans set aside at the time of Citicorp’s announcement. Until Citicorp’s move, which was soon followed by other U.S. and British banks, Canadian banks had taken the most conservative approach to their reserves. The bank funded the special provision by cleaning out its appropriations for contingency fund and drawing down its retained earnings. Retained earnings are just past profits which have been held back rather than distributed to shareholders. About $1 billion will remain in the Bank of Montreal's retained earnings after the provision is withdrawn, Smith said. But the appropriations for contingency fund will be completely emptied. That fund, which has been built up since the banks began using the five-year averaging provision for their loan tases in 1980, is made up of the difference between the isions set aside in anticipation of losses and the wreual joan loss experience. It appears that the five-year-averaging provision which allows banks to write off their losses over a five-year period rather than taking them all in the year they occur is about to be eliminated, Smith said, and therefore the appropriations for contingency fund will no longer exist. Nader condemns Canadian bill WASHINGTON (CP) — U.S. consumer advocate Ralph Nader has said Canada’s proposed new prescrip- tion-drug legislation puts corporate profits ahead of the health needs of Canadians and should be ditched. In an open letter to Prime Minister Brian Mulroney, Nader urged Canada to resist pressure from U.S. pharmaceutical companies and the U.S. administration to limit for brand. from low-priced copies of their drugs. “Your government is close to making a very serious mistake by choosing corporate wealth over the Canadian public’s health and welfare,” Nader wrote. He said the U.S. system of granting drug companies 17 years of patent-protection on new products has put the price of prescription drugs out of reach for many low-income consumers in the United States, and Canada should refrain from pursuing a similar path. “Some may contend that Canada’s socialized health-care system will protect financially vulnerable prescription-drug consumers from the higher prices that will result from the passage of the patent law,” Nader said. “But these are also taxp taxpayers support Canada's health care system.” The proposed Canadian legislation, currently bogged down in Parliament, would give makers of brand-name drugs 10 years of protection from competition for the new drugs they patent. Under the proposal, a drug-prices review board would try to prevent unreasonable increases in the prices of all prescription drugs and the federal government would provide $100 million Cdn in payments to the provinces over the next four years to offset short-term increases in drug costs. The current Canadian system allows competition from low-priced copies, known as generic drugs, before patents expire as long as a four-per-cent royalty is paid to the patent holder. The fate of the new legislation is unclear since the Liberal-dominatéd Senate approved a watered-down version of the bill last week. It would provide four years of freedom from competition instead of 10; raise the royalties to 14 per cent from four per cent; and eliminate the drug-prices review board and the payments to the ‘3 and provinces and a “guard” cast in the mold of the Secret Service. Mondale even pointed to a poll done for Morris’ masters by the Opinion Research Corp. that found more than 70 per cent of the public knew who Morris is, nearly double the number who could identify some seriously de- clared — and serious — candidates. Reporters went along to a point — asking if Benji the dog would be his running mate and whether, if elected, Morris would seek a summit meeting with Soviet leader Mikhail Gorbachev. Through it all, Morris be- haved more like a cat than a hing catfood Rocky Tex & Bookkeeping Services * Smalt Business & Contractors © Persona * Farm-Logging No. 06-1545 ColumbiaAvenve Castlegar, 8.C. VIN 131 IRENE MORTIMER (365-2362 SOLIGO, KOIDE & JOHN CHARTERED ACCOUNTANTS 615 Columbia Ave. (Upstoirs) Castlegar Phone 365-7745 Henry John, B.Sc.C.A. Resident Partner Brian L. Brown CERTIFIED GENERAL ACCOUNTANT 270 Columbia Ave. Castlegar Ph. 365-2151 Appliance Rentals TIRED OF LAUNDROMATS? + And do your wash at home. For your convenience. other appliances ore also available for rent such os ranges, fridges. dishwoshers. microwaves and ers. For nove intormetion caller drop MOROSO, MARKIN & BLAIN CERTIFIED GENERAL ACCOUNTANTS 241 Columbia Ave. Castlegar Ph. 365-7287 Advertising SSELL ICTION Hwy. 3A, Thrums Buy or Sell by Auction 399-4793 AUCTION SERVICE from his trainer's hand, shift- ing positions in his blue dir- ector’s chair, scratching is whiskers and yawning. Yawning. Appropriate be- havior for August in the U.S. capital. Wear your rubbers VANCOUVER (CP) — A stern Victorian-era woman glares straight at you from the front of a greeting card along with the words: “Some friendly advice from your mother .. .” The advice inside is “Wear your rubbers” and under- neath is a genuine condom. Condom cards, the newest alternative to saying it with flowers, are the inspiration of Penny Street, a course de- signer at British Columbia's Open Learning Institute. syndrome and concern,” Street says. Her 19-year-old son left for college in Feb- ruary and she worried he might not remember to wear a condom if he became in. timate with someone. “I thought I'd send him a condom in the mail,” said Street. “But would I just stick one in with a letter? And what would the letter say?” She developed the condom greeting-card idea with the help of two local artists Xero (Carel Moiseiwitsch) and Dean Mitchell. Xero illustra ted about half the cards, while the rest use Victorian illustrations. Service, advice end Promotions for YOUR Business, Coll Gery or Dienne at For Professional Advertising Design Castlégar News 197 Columbia Ave. 365-5210 Business Counselling jest Kootenay Enterprise Centre Appliances Offers free counselling, @ssistance and training for small business interests in the Kootenay Boundary Region. Phone 365-5886 TRAIL APPLIANCE REPAIR SHOP LTD. Parts & Service FOR ALL MAJOR BRANDS, * REFRIGERATORS * DISHWASHERS * WASHING MACHINES: 2 LOCATIONS (604) 368-8612 CASTLEGAR (604) 365-5051 APPLIANCE PARTS AND SERVICE DEPT. Call 365-3388 * All Brand Names Serviced * All Parts Stocked * Rebuilt Timers * Used Appliances and Consignments * Coin Operated Machines * Industrial Laundry WE ALSO Seavici + wenunont «Gus * HOTPOWET # BTC CASTLEGAR PLUMBING & HEATING LTD. 008 Columble Avenve 346-3388 Whether your name starts with A, M,X orZ You'll find Business Directory edvertising pays! Ph. 365-5210 Carpet Cleaning & Most Advanced System Gets more deep down soil than ony other cleaning %& Upholstery Cleaning Too SATISFACTION GUARANTEED Why not Call Us Today FREE ESTIMATES Ph. 36576969 Computers KOOTENAY INFORMATICS Slecen ‘Jonetion 359-7755 Concrete WEST K CONCRETE LTD. PIPELINE PITT RD. CALL PLANT 693-2430 CASTLEGAR 365-2430 Contractors KINNAIRD TRANSFER Concrete Gravel Road Gravel Drain Rock Bedding Sand Fill, Gravel or Sand Topsoil Call 365-7124 KRAGH CONSTRUCTION * ROOFING — Tar and Gravel — Asphalt Shingles © CARPENTRY — Carports — Additions CALL DOUG KRAGH 367-9782 THE STORE THAT HAS IT ALL IN DRAPERY! Gwen Kissock In-home drapery estimates no charge, no obligation. Commercial or Residential 5:30 Tues. to Sat. Bus. 365-3515 Res. 365-6880 1434 Columbia Ave., Castlegar Drywall TRUE LINE DESIGNS Mobile Services Vernon 1.7. Channel efter 6:08 p.m Moving & Storage Radiator Repairs eae RADIATOR REPAIRS — Auto — Truck — industriel New & Used Parts Arrow Auto Wrecking Monee «= 9365-5161 the many services which hove made Williams the most respec- ted n in the moving business Ph. 365-3328 Collect RUBBER STAMPS om a4 Legisla tie Library, Parliament’ Bldgs. 501. Belleville Victoria, B. C. W8V 1x4 Revita By RON NORMAN Editer Fabi The bg 000 revitalization plan n proposed for downtown Castlegar has been scrapped, the Castlegar News learned today. Tack Parkin, of the Association, said the plan was too rich for the approximately 30 property owners involved. “They felt what we wanted to spend (they) couldn't afford,” Parkin said. The plan needed the approval of 60 per cent of the Property owners who represent at least 60 per cent of the assessed property values. Parkin said it was a case of simply not signing up the I 28 decision to put the plan on hold indefinitely, ‘The city had pledged earlier to pick up half the total cost of the downtown facelift — or $326,000. However, its support was hinged on the property owners‘ paying the remaining 50 per cent beginning in 1988. At an Aug. 18 meeting behind closed doors, council decided to pull its financial support for the plan, citing the DBA revitalization committee's “inaction.” However, council left the door open for future funding, saying it would reconsider cost sharing if another plan is presented. Ald. Nick Oglow, chairman of the planning and development committee, said he agrees with the DBA’s decision to scrap the revitalization plan. excluding other properties. “There was not the value for the dollars,” he added. Oglow said that in any event, the provincial govern. ment's Downtown Revitalization Program, which provides low interest loans to pa has been ation plan scrappe tax load at this time.” Parkin also more help get the plan off the ground. He said the recently revamped downtown revitalization could shelved. He noted that the province may introduce other programs to help older communities revitalize their down. towns that would be more acceptable to Castlegar property owners. “There's a better route to go, ultimately,” he said. Oglow said what is needed more than downtown re- vitalization is “d "He more wanted to see the mall proposal by local businessman Leo Bosse go ahead to help widen the tax base. Parkin is one of six members on the DBA committee. The other five are property owners affected by the plan. The committee was revamped in April after the plan presented by the initial committee failed to gain the support of. the majority of property owners. The revitalization plan has been in the works in one form or ‘another for nearly a decade. The latest plan was Music The Kootenay Conductors ‘Music for all occasions . . Weddings, Banquets, Donces We D.J. Music YOU want with state of the art compact discs and quality cassettes 365-7528 or 352-5609 Nursery CHANG Nursery & Florists Ltd. Acomplete nursery stock! Tropical Plants Instant Sod Restaurants THE COLANDER SPAGHETTI HOUSE Specializing in Italian Cuisine “A Trait T ” Dinner 5 to 9 every day. Lunch 11:30 to 2, Tweskaeys. For Reservations Phone 364-1816 1475 Cedar Avenue ri ROOFING * Guaranteed Work ¢ Fair Prices © 30 Years in Business ¢ Free Estimates JAMES SWANSON AND SONS Ph. 367-7680 Gorden Supplies & Equipment COMPLETE WICKLUM ting LANOSCAPING SERVICE 365-7312 Open 7 days o week 9a 9.a.m. to6 p.m. Sundays 2601 - 9th Avenue, Castlegar 4 Yu tL LeNoy 8.S.0.D. OPTOMETRIST 1012 - 4th St. Castlegar PHONE 365-3361 Tues.-Fri. 9.a.m.-4:30 p.m Saturday 9 a.m.-12 noon J.T. (TIM) ALLEN B.Sc.O0.D OPTOMETRIST No. 2 - 615 Columbia, Castlegar 365-2220 or 366 Baker St., Nelson 352-5152 Plumbing & Heating AL'S PLUMBING Residentiol n* Repairs Heating 365-8223 CASTLEGAR FUNERAL CHAPEL Dedicated to kindly, thoughtful service. COMPLETE FUNERAL SERVICE Cremation, Traditional Granite, Bronze Memorials. Cremation Urns ond Plaques Phone 365-3222 BARTLE & GIBSON The Plumbing & Heating Centre * American Standard 365- 2317 - 6th Ave. Government Certified Box 525, Nelson, B.C. RRAP PROGRAM FREE ESTIMATES 17 Years Certified Rooting PHONE LORNE 352-2917 CASTLEGAR ROOFING & SIDING Vinyl ® Aluminum Cedar Siding © Soffits Facia * Roofing Metal Shingles © Tar New or Re-Roots CALL FRED 365-2522, MARCEL 365-2537 COLEMAN COUNTRY BOY SERVICE Sump & Septic Tank Pumping PHONE 365-5013 3400 - 4th Avenue Castlegar Want to make a little money goa long way? Try Business Directory Advertising number of property owners required. The DBA’s Revitaliz- ation Committee notified Castlegar council in mid-July of its “I didn’t agree with the plan . Vol. 40, No. 68 . it was too restrictive,” Oglow said. He said the plan included some areas while taxpayer,” WAY, CastlegarNews © CASTLEGAR, BRITISH COLUMBIA, WEDNESDAY, AUGUST 26, 1987 businesses are needed downtown to share the tax burden. “Revitalization is an added load on the existing he said. “There is no need to add to the present unveiled in May, 1986. The DBA revitalization committee then spent the next 11 months soliciting support from property owners. 4 Sections (A, B,C & D) Fewer forest fires this year By CasNews Staff Despite even drier weather this season than the record forest fire season of 1985, the number of blazes are down dramatically and, according to district planner Ted Evans, are not expected to increase. A total of only 72 fires have been fought in the Arrow Lakes Forest district this year, including two that ignited this week, at a total cost of $570,000, compared to the 1985 forest fire season which saw a total of 280 blazes. “It's a considerable drop.” said- Evans, who explained that though conditions are drier there have been fewer lightning storms than in 1985. “If there had been the same lightning situation this year, things would have been very different,” he said. “We've been very fortunate in that regard.” Evans explained that the forest fire season generally runs from April 15 to Oct. 15, but he said forest fires are expected to decline even further with the coming cooler days and moist fall conditions. Earlier this week, two blazes were fought after a lightning storm Monday evening. The first fire near Little Slocan Lake was extinguished, but a second blaze near Champion Lakes Provincial Park required the use of an air tanker and a 15-man firefighting crew to contain it. The crew was reduced to seven today for the “mopping up” stage. JENNIFER PETERSON . semi-finalist Peterson impressive at pageant By CasNews Staff Miss Castlegar 1986 Jennifer Peterson came up with an im- pressive showing at last weekend's Miss Interior of B.C. Pageant held in Penticton. She was one of the top eight semi finalists overall, and was one of the top eight semi-finalists in the swim suit competition. “It was great. It was a good learning experience,” said Peterson. continued on page A2 DISPUTE CONTINUES .. . Suiking railway workers continue to picket across Canada today with the threat of government intervention hanging over their heads. Pictured above are; (from left) Rick Parr, “Mongo” Gibbons and Gary Kennedy picketing in front of the Castlegar CPR station. CasNewsPhoto by Mike Kolesniko SPOKESMAN SAYS Co-op report a victory By MIKE KALESNIKO Staff Writer A recently released report on the now defunct Teachers’ Investment Housing Cooperative is being heralded as a victory by Castlegar resident Alma McGauley who heads a group of teachers suing the provincial government “We're quite pleased with this within the limits of the mandate,” McGauley told the Castlegar News after returning from a meeting with Finance Minister Mel Couvelier last week. “It does support our position and we feel vindicated, it is a victory “And we see it as a fairly strong statement when you consider that an officer of the government has made this report,” she said. “He only criticises the government obliquely but it is still fairly strong.” The 39-page report, by Alfan Mulholland, provincial superintendent of financial institutions, was ordered last October following intense lobbying by the disgruntled investors who lost thousands of dollars when the institution collapsed in November, 1985. Mulholland said in his report the underlying problem leading to the collapse was that the co-operative had “expanded and diversified beyond its resources and skills. “It had been extremely successful at its speciality of providing mortgages for teachers, but had neither the skills to cope with its eventual role as a major financial institution nor the safety net of deposit insurance if it failed,” the report said. McGauley said the litigation committee's Vancouver law firm Guild, Yule and Co., has sent an official letter to the finance minister informing him that the litigation is proceeding. The firm is also lining up so-called expert witnesses to testify during the trial. McGauley, a retired Castlegar teacher who with her husband had $70,000 invested in the co-op, said some 2,375 depositors have each contributed $200 since she mailed requests for support last April 30. She said those still interested in joining the group must register before the Sept. 30 cut-off date. But py admits that Mul lot unsaid. report leaves a “There is still a Jot of unanswered questions,” she said. “This information in this report is given voluntarily, it's not under oath and it's not an official inquiry.” However, McGauley readily admits she is feeling more confident about the litigation, a big change from the numbing shock she felt when she first heard of the co-op's demise. “At first we didn't want anybody to know we had lost this money,” she said. “I went around in a cloud for two weeks after the news came out thinking, that doesn't mean me because I have RRSPs, they must be okay.” Despite the fact that 30 per cent of the RRSP holders were non members and had never purchased a shre — in cluding McGauley herself — all the RRSPs were Jost along with all the deposits. On the other hand, McGauley is certain the fight will continue to be a difficult one. She knows the government will put a strong battle in court but she is bolstered by the confidence of her prestigious law firm. “There's no doubt the government will be spending a lot of money defending against us,” said McGauley. “But we feel we'll have served a very great public need for education and for protection because while we're happy with the results of the Mulholland report, it was of a much narrower scope than what we had asked for and it is not a judicial inquiry “We would like our money back, yes,” she said, “but we would sure like to think we prevented a lot of other people from having the rug pulled out from under them.” Among Mulholland's other recommendations released in the report e Information about the meaning of trust relationships should be required to be disclosed by financial institutions to their customers; Higher standards of care should apply to boards of directors of financial institutions than for other companies; e Legislation should not allow a finamcial institutions, whatever it is called, to escape close regulation and moni. toring; © The Co-operative Association Act should be amended to prohibit operation of a deposit-taking or financial institution under its auspices Long rail strike not anticipated By MIKE KALESNIKO Staff Writer Though the national rail strike is already into its third day today, both striking rail workers and Castlegar companies that rely on the rail lines are not expecting a long or disruptive strike. Approximately 120 rail workers in Castlegar, Nelson, Trail and Grand Forks remain off the job today as part of a national strike called by Canadian Pacific and Canadian National railway workers over the issues of job security and wages. According to Gary Kennedy, chair. man of the Brotherhood of Mainten ance and Way Employees local 180, the dispute is almost certain not to last long. Kennedy say he spoke with his union's head office in Toronto Tuesday and was told government intervention in the strike is almost a certainty. “They're taking away our right to strike,” Kennedy said Tuesday. “The government's talking about all the disruption but not even 12 hours has gone by yet.” Wilf Sweeney, general manager of Celgar Pulp Co., said the strike has had little effect on the operation so far. Sweeney said Celgar has enough chemicals to keep it operating smooth ly for at least one week and he said inside much of their product, destined for overseas markets, is being moved out by truck. Sweeney predicted that the real trouble will start once the rail lines re-open since companies all across Canada will have a backlog of goods to move, Sweeney saidthe Celgar operation is also planning a one-week shut down early next month which would give the company an additional week of grace. “We'll just sit here: with our fingers crossed,” he said, “and hope it doesn’t last very long.” Wade Zammit, general manager of Westar Timber's Southern Wood Pro- ducts in Castlegar, said that operation will continue to function at full capacity as long as space holds for stockpiling lumber. “Our problem is one of physical space,” said Zammit, who explained that only about 10 to 15 per cent of their product can be shipped out on other lines, such as trucking lumber to Christina Lake and shipping it on Burlington Northern rail lines. But Zammit emphasized that there will be no production cutbacks at the mill and he said the company does not expect to encounter any serious diffi. culties from the rail dispute for at least two weeks. BILL DEFENDED: Kootenay West MP Bob Brisco defended the federal governments new legislation governing illegal immigrants in the House last week and accused Liberal and New Democratic Party members of "hypocrisy A2 FATAL CRASH . . . A Calgary man died in hospital following o motorcycle crash on Highway 3 near Castlegar last week... A2 CHOIR RETURNS: The Kootenay Youth Choir recently returned from a trip through Southern California aé LIBRARY OPEN: Castlegar Library has opened its doors with new hours but the official opening won't be until Sept. 19... A7 VIDEO MAPS: MENLO PARK, Calif. — Drivers in West Germany may soon be guided along the autobahn by video maps from a Silicon Valley company Etak Inc. announced today a technology-licencing agreement with Blaupunkt-Werke GmbH of West Germany, one of Europe's leading manufacturers of automotive audio equipment. Etak previously signed licencing agreements with General Motors Corp. and Clarion Co. Ltd. of Tokyo. The Etak system shows the driver's car as a blip on a screen, next to the dashb d, that a map of wh the car is at the moment. The driver can zoom in to see local streets or back to see a regional or national map For now, Etak’s Navigator can be found on only about 2,000 cars and trucks in California, where the company has been tes! marketing the products since 1985. The system has sold for $995 to $1,995 US with different sized display screens, plus $35 for map cassettes.