Castlegar News fervor 16, 196 Warmer air to the south of the border is keeping cloud and flurries over the SYNOPSIS: Ww: southern halt of the province. At the same time o trough ext: supplying cold al to northern 8.C- ard cool air to he south. This next 48 hours and of snow are likely oreding Sram northern Alberta is l will keep skies cloudy over the Lumber talks ‘useful’ PRINCE GEORGE (CP) — Canada-U.S. lumber trade talks wound up Friday with the Americans calling them a success and the Canadians calling them useful. “I think we probably nar rowed differences in view,” said Perey Eastham, direc tor-general of the U.S. rela tions bureau in the federal External Affairs Depart ment. Ann Hughes, deputy as sistant secretary for the U.S. Department of Commerce, said lumber is the biggest trade issue between the two countries. She said at the meetings, “there was a full explanation ices on both sides of of the border.” Aa LI ES&S in Washi D.C. The next talks are expec: ted to begin within a month WILDLIFE CLUB BEGINS CHECK ON FISH By SIMON BIRCH Staff Writer There's a census underway in the Castlegar area but unlike government censuses we're all used to, this one doesn’t ask any personal questions — unless you consider the length and weight of your day's catch personal information. Yes, we're talking about fish here. The Castlegar and District Wildlife Association has prepared a “creel census kit” which the association is distributing to fishermen on the Arrow Lakes. The kit contains a chart on which fishermen record the date fished, number of rods used, number of hours fished, number and species of fish caught and the weight and length of each fish over 12 inches (30 centimetres). “We've even thrown in a pencil so there's no excuse for not filling out the form,” said Brian Briscoe of the CDWA. Why a fish census? Definitely not just for fun. Briscoe explained that the CDWA is conducting the Hraene saa way of chtnining data on the quality of fishing on the Arrow The census is ee important in determining the success of fish enhancement projects on the lakes, such as the rainbow trout enhancement project the CDWA is currently conducting at Scotties Marina on Lower Arrow Lake. The CDWA has 10,000 Gerrard rainbow trout in a pen at the marina. This June, when the fish are about 15-18 centimetres long, the club will mark the fish and release them into streams that feed Lower Arrow Lake. Briscoe said the census will help the association “get some history on what happens” to the fish after they are released. “We want to see sport fishermen catching them when they are much larger,” he said. “The only way we're going to know they are is if we get some sort of reporting system back.” Briscoe added that the census will also help determine the success of the Hill Creek spawning channel north of Nakusp. He said many of the fish from there have been in the lake for four years and are returning to their artificial spawning ground. Therefore, he said, it is especially important that fishermen cirele any marked fish on the form and record the location of the catch and describe the marking. “If we catch fish from there we'll know,” Briscoe The CDWA will forward the data from the census to the fisheries branch of the Ministry of Environment in Nelson, which will combine the association's data with lata from the branch's own census. Bob Lindsay, a fish biologist with the environment ministry in Nelson, welcomes the association's effort because he said the ministry's census is nowhere near as intensive as the CDWA's. “We normally do five days a month,” Lindsay said. “If (the CDWA's census) works, we should get close to 100 per cent coverage.” One of the things the census will tell the fisheries branch — as well as local fishermen — is the number of rod-hours fishermen are putting in to land a fish. Rod-hours are the number of rods used multiplied by the number of hours fished. Two fishermen each using a rod for five hours produce 10 rod-hours of fishing. Lindsay said that on Kootenay Lake, fishermen average—about-40 rod-hours to catch a seven to 11 kilogram Gerrard rainbow trout. The CDWA census will provide equivalent informa tion for the Arrow Lakes. In addition to charting their catches, fishermen are being asked to provide scale samples from the fish caught. The creel census kit contains small envelopes in which to put the samples. The CDWA sends the samples to the fisheries branch which can determine the age of the fish by examining the scales under a microscope. Briscoe said one reason the age is important is it allows a determination, along with the length to weight ratio of the fish, of whether the fish in the lakes are getting an adequate food supply. For example, a fully grown older fish that doesn't weigh much is obviously short on food. However, Briscoe pointed out that fish reach full length before putting on weight. Hence the need to distinguish between a young fish and an older fish. And what's in all this for the fishermen? First of all, each form will be used as an entry form to a draw for fishing and boating equipment. A draw will be held every three months. Secondly, reports will be made of the compiled data and copies of the reports will be distributed to those fishermen who sign the forms. Briscoe stressed that the names of the fishermen will not be used in the reports. He also pointed out that the census is in no way intended as a check on the legality of one’s fishing. Briscoe said about 100 census kits are now in circulation and he said he hopes many of the spring and summer fishermen will cooperate with the association in conducting the census. He added that the census poses a “considerable cost” to the CDWA. “But the costs are worthwhile if we get the data back.” The census kits are available at all marinas along Lower Arrow Lake and are also available from the CDWA. ON THE LINE . . . Shaw Cable workers string a picket across the Sandman Inn's driveway Friday to protest SHAW CABLE continued from tront page a union shop clause in the contract. what they say is o Shaw Cable office inside the local hotel. CaaNews Photo by Simon Birch _ “If the Sandman Inn applied for an to stop the i workers’ Culpepper said. Culpepper said the union has “evi- dence” of the work Shaw Cable is doing at the Sandman but on the advice of the union's lawyer would not give any de- tails, saying it's a matter “that would be given in front of a judge.” could meet local needs. Announcement’ of the fund drew a cool reception from teacher and school trustee organizations. “We're going to see school districts scrambling to submit wish-lists so the cabinet can play pork-barrel politics with them,” said Pat Clarke, pr of the B.C. Teachers’ Federation. “It'll dole out the money wherever it looks like it'll do the Socreds the most The good politically.” Eric Buckley. would produce the evidence in court” He added that the workers would maintain the picket line in front of the Sandman until the union is “convinced that Shaw Cable has closed down this office or until we reach a collective SCHOOL FUNDING continued trom front pege Bennett said, however, there will be consultations with the education com- munity to determine how the money The B.C. Sehool Trustees Associa- tion also reacted warily. “I find it totally mysterious and puz- zling why cabinet must decide who gets the money,” said association president Although the government wants the money to be spent on computers, teacher training, language training and texbooks in schools, Buckley said the province's 75 school boards can make agreement.” A Shaw Cable representative could not be reached for comment Friday. In other strike-related news, Cul- pepper said every Shaw Cable office in B.C. was picketed Friday and that a Shaw Cable shareholders meeting this weekend in Edmonton will be visited by union members who will hand out information about the strike. “a more Bennett later this other uses, which he will spell out to premier gave no details of how much of the fund will go to schools and argument” for week. term. how much will go to universities and colleges. Meanwhile, New Democrat Rose, the opposition education spokes- man, welcomed the announcement of the new fund but noted the Bennett government has cut $350 million from the education system over three years and now is just giving back a third of the amount. “This is a predictable election shell game,” said Rose, alluding to specula tion that Bennett would call an election this year — the third of his five-year Mark Westar reports loss VANCOUVER (CP) — Westar Mining Ltd. reported Friday net earnings for 1985 were $34.7 million, compared with $40.9 million the pre- vious year. After extraordinary items, Westar had a loss of $186.8 million. Court news SALMO VALLEY WILDLIFE Society won't give up By CasNews Staff The Salmo Valley Wildlife Society is not giving up on its proposal for a wildlife park and wildlife rehabilitation centre south of Salmo even though the group's request for Expo legacy funds was turned down before Christmas. The wildlife society had applied for $402,500 to purchase about 25 hectares of land four kilometres south of Salmo on the Salmo airport road. The proposal also calls for construction of a two-storey museum as well as crafts booths. A news release from the society quotes a letter from the Expo legacy committee as stating that although the proposal “was in keeping with the legacy program, local contribution was substantially less than the committee was prepared to consider for a project of this size.” A requirement for the grant states that the community must match the funding. Iris Bakken, Regional District of Central Kootenay director for Area G (rural Salmo) and president of the wildlife society, said this week the society is renewing its efforts to garner local support and contributions for the project in the hope of convincing the Expe legacy committee to reconsider the proposal. “We'll submit the proposal again if we get real good support and some donations,” Bakken said Bakken said the wildlife society has raised about $1,200 for the project. She is circulating a form letter that supporters of the proposal can sign and send to Education Minister Jim Hewitt, minister responsible for the Expo legacy fund. The letter also contains space to indicate a donation to the project. Bakken said Salmo village council will be preparing a list of projects and will ask village residents which one they prefer as a legacy project. “Lhave a good feeling our project will be supported, she said. “As a legacy project, it's something the whole area could be proud of.” Services held John J. Kazakoff of Cres cent Valley passed away on Feb. 13 at the age of 85 years. Funeral service was held on Friday and Saturday from the Castlegar Funeral Chapel with burial in the Krestova Cemetery. Mr. Kazakoff was born May 29, 1900 at Verigin, Sask. and came to B.C. set During his life, Mr. Kaz. akoff worked as an edgerman for Waldies Sawmill and later for Celgar. During the last few years, he operated the rural mail route in Crescent Valley, retiring in 1984. He is survived by two daughters, Helen Makortoff and Mary Zaitsoff of Castle- gar; seven grandchildren; 14 tling in Or with his parents in 1901. In 1907 the family moved to Grand Forks where he grew up and lived until he moved to Shoreacres in 1934. In 1971 he moved to Kres- tova where he had since re- sided. @ and one Se ea prentaee. He was predeceased by his wife in 1972 and one grandson in 1982. Funeral arrangements were under the direction of the Castlegar Funeral Chap- el. In Castlegar provincial court this week, Audie Hash- ka pleaded guilty to two counts of breaking and enter- ing and was sentenced to 60 days in jail on one count and 30 days concurrent with six months’ probation on the other count. Hashka also pleaded guilty to possession of stolen property and was given a 30-day concurrent jail term along with six months’ probation. In addition to those char- ges, Hashka pleaded guilty to being a minor in a licensed establishment, a minor in possession of liquor and con. sumption of liquor in a public place. He was fined $75 on each of those charges. Hashka also pleaded guilty to two counts of driving without a license, speeding, speeding in a playground zone and not having a license in his’ possession. He was fined $15 on the last count and $35 on each of the other counts. . 8 6 Frederick Hazelton plead- ed guilty to driving with a blood-alcohol count over .08 and was sentenced to three months in jail. He also plead- ed guilty to failure to appear and received a 30-day con- current jail term. The extraordinary charge of $294 million reflects the writedown of the book value of the company’s Brae assets in the North Sea. An agree- ment was later reached to cancel a Brae funding ob- ligation with Bow Valley In. dustries of Calgary. Westar said in a news re- lease it had an extraordinary gain of $72.5 million on the sale of Westshore Terminals to B.C. Resources Invest- ment Corp. in April 1985. Westar is 67-per-cent owned by B.C. Resources. Westar said 1985 sales were $614.9 million, com. pared with $621.7 million the previous year, as reduced coal revenues were partly offset by higher oi] revenues. Earnings before extraor- dinary items for the fourth quarter were $9.3 million, compared with $10.9 million in 1984. After extraordinary items, Westar lost $284.7 million, compared with a $3.8-million loss the previous year. Company president Gary Livingstone said world over. supply of coal continued to depress prices for both met. allurgical and thermal coal throughout 1985. But he said stringent cost controls and accelerated marketing ef. forts helped reduce the im. pact of poor markets, al lowing Westar to remain competitive. Livingstone said because of expected flat coal prices and sharply lower oil reven ues in 1985, the company sees little hope of improvement for 1986. Mount Sentinel scholars named Mount Sentinel Secondary School has announced their scholars at the end of the first semester. The grade point average is based on A(5), B)4), C-plus (3), C(2), C+1). To make the Principal's List a 4.5 grade point aver- age is required while a grade point average of 4 is nec essary for the honor roll. Principal's List Grade 12: Simon Carr and David Sookaveiff. Grade 10: Duane Sheloff, Sasha Lees, Lorrie Popoff and Lorraine Argatoff. Grade 9: Zoey Lewis, Clin ton Swanson and Al Jury. Grade 8: Lara Podmorow, Suzanne Hodges, David Vel- isek, Darren Zarubin, Holly Pommier, Delphi Hoodicoff, Jason Letkemann and Kam- ala Meeres. Grade 7: Sara Hoodicoff, Lee Lidstone and Cindy Hoo- laeff. Honor Rell Grade 12: Geneen Coffey, Inderjit Bhabra, Dan Tar- asoff, Mike Nelson, Lisa Koorbatoff and Steve Swan- son. Grade 11: Jesse Cowern and Joshua Powell. Grade 10: Todd Markin, Steve Sapriken, Lori Legebo- koff and Elissa Wadds. Grade 9: Shellie Maloff and Saranjit Bhabra. Grade 8: Michelle Thickett and Steven Ball. Grade 7: Andrea Verigin, ‘Trevor Kanigan and Leonard Popoff. Fonyo wanted MEDICINE HAT, ALTA. (CP) — City police say they had telephone calls all day Friday from people offering to pay a $30 speeding ticket for amputee runner Steve Fonyo. But a provincial court of. ficial said the court wouldn't accept the money. “If the ticket is paid, it means he's guilty of the speeding offence,” said Gary Taylor, district manager of court services. “Mr. Fonyo may not feel he’s guilty. Unless the person who's paying has been in contact with Mr. Fonyo and is acting as his agent, we just won't (accept the money).” A warrant for Fonyo’s ar. rest was issued Thursday af. ter he didn't show up for a provincial court appearance to deal with the ticket. The 20-year-old Calgary resident, who raised millions of dollars for cancer research with a cross-country run that ended last year, was in Tor. onto attending festivities in his honor. Briefly 42 INJURED BERNIERES, QUE. (CP) — Forty-two people were injured Saturday when a Via Rail passenger train collided with a stationary freight train in the third serious Canadian railway accident in the last week, Two passengers, whom Via refused to identify, remain in hospital in Quebec, One passenger is suffering from a broken leg, while another passenger suffered a back injury. Both are expected to be released today. The 40 injured p , with an assortment of minor bumps, sprains and contusions, were released shortly after being checked by doctors at five hospitals in the Quebec City area. FIGHTING CONTINUES MANAMA, BAHRAIN (CP) — Heavy fighting on the southern front of the 5'-year-old Persian Gulf war moved into its sixth day Saturday, with Iran and Iraq apparently close to stalemate again in the conflict. Neither side seems to have established any decisive battlefield advantage since Iranian troops poured into Iraq a week ago across the Shatt al Arab waterway at the head of the gulf. Conflicting claims and counter-claims made it difficult to gauge how far Iran had advanced into Iraq, but their forces appear well entrenched round the disused Iraqi oil port of Faw. VIOLENCE ERUPTS NEW DELHI (REUTER) — Authorities imposed curfews, banned public meetings and sent police reinforcements to calm Hindus, Moslems and Sikhs as religious tensions erupted into violence in northern India. At least one person was killed, 50 hurt and 135 arrested on Friday in Hindu-Moslem clashes in Delhi and neighboring Uttar Pradesh state. The violence was sparked by protests over the reopening of a disputed Hindu temple once used as a mosque. In Punjab state, authorities ordered police rein forcements to the Sikh holy city of Amritsar where militant and moderate Sikhs moved toward a showdown over control of their religion's holiest shrine, the Golden Temple. CEREMONY IN CANADA TORONTO (CP) — The United Steelworkers of America will hold swearing-in ceremonies for its international officers and executive board in Canada for the first time in the union's 50-year history: Steelworkers spokesman Sue Kelley said the elaborate ceremonies for 24 district directors, five top officers, Canadian national director and head of the union's upholsterers division are set for a downtown hotel on March 1. All 31 officials sit on the union's international executive board. The ceremonies officially start four-year terms. The Pittsburgh-based union has always held the ceremonies in the United States. But Kelley said president Lynn Williams, a Canadian, wanted to change the venue in recognition of the union's 160,000 members in Canada. POLLEN WINS VICTORIA (CP) — A downtown Victoria hotel lost its suit for slander against former mayor Peter Pollen. The Kings Hotel sued Pollen — now leader of the provincial Conservative party — over remarks he made about the hotel at a city council committee meeting in January 1984. Pollen called the hotel a dump and a pigsty and charged it was contributing to the deterioration of the area. But Mr. Justice Reginald Gibbs ruled Pollen was protected by privilege and was free to speak his mind Gibbs said Pollen genuinely believed what he said and a cross-section of the community agreed with him. COMPANY QUITS VICTORIA (CP) — Tourmaster Holidays Ltd. of Victoria has had its licence lifted and is under investigation by the provincial registrar of travel It is the fifth B.C. travel company to fail within the last year Registrar Frank Basiren said Friday: “They phoned and said they didn’t have sufficient funds to carry on. I was getting suspicious and I guess they decided to voluntarily close for a few days.” He said he received a couple of customer complaints last week about cheques that bounced and began an investigation Monday. On Tuesday, Tour. master owner Ian Thow phoned to say the company could not continue MP WON'T RESIGN ARTHABASKA, QUE. (CP) — Conservative MP Maurice Tremblay, convicted Friday of assaulting the president of his riding association, said he has no plans to quit his seat in the Commons. “I will not resign,” said Tremblay, who first won the riding of Lotbiniere in the 1984 election. “And I'm not at all worried about getting the approval of my party or caucus.” The conviction stemmed from an argument last May 24 when Tremblay, 41, struck Robert Desaulniers and broke his nose Tremblay said the injury occurred accidentally when he raised his arm to defend himself after Desaulniers pushed him LAWMAKERS MEET BEIRUT (AP) Four Christian legislators met Saturday with Syrian-backed Moslem leader Nabih Berri in an effort to defuse a growing campaign to oust Maronite Catholic President Amin Gemayel. Meanwhile in South Lebanon, two Moselm children and their grandfathér were killed when a hand grenade the children found exploded at their house, police said Police said nine-year-old Karam Farhat found the grenade in a field near their house in Angoun, southeast of the port city of Sidon, and brought it to their grandfather's shop race. Casts News 1 GRAND OPENING .. . the ay roe Red Cross Society its West K the B.C. Interior, of the C Intor- mation Centre and Castlegar toon Service on Saturday in room 102 of the Sandman Inn. On hand were (left to right) Ed Taylor, regional director of the Red Cross for Reed, r Brian Gilbertson division of the Red Cross. Ald. Carl Henne, Anne Jones Society, Den gar Hospic ional vice-president for the Red Cross, and commissioner of the B.C.-Yukon CosNewsPhote PWA offer rejected by two unions CALGARY (CP) — Two of three striking unions at fligh' ia tay eaees thas sate eed Oia ca ticket agents. Jack Lawless, director of public relations for Pacific Western, said negotiations for an orderly return to work will start Monday. Lawless said PWA was disappointed the other two unions chose to reject their offers. “The offers ... were, in the company's view, fair and reasonable in today's competitive airline industry and the best the company could offer.” Jo Bannon of the flight attendants said the three unions entered the dispute Nov. 20 with the agreement none would go back to work until they all had collective agreements. She says her union has no reason to believe that commitment has changed. About 1,800 Pacific Western workers across the country walked off the job Nov. 20 in a contract dispute with the company. Personnel fi NEW YORK (AP) — Cyanide found in a Tylenol capsule that killed a woman could have been injected months ago, federal authorities said Saturday, as the painkiller's maker began a review of production and distribution and 30,000 employee files. “The work we did showed no time restrictions such as were previously reported,” said Food and Drug Adminis tration Commissioner Dr. Frank Young. He was referring to statements by Westchester County, N.Y., authorities that the poison would dissolve the capsule’s gelatin casing in eight to 10 days. Westchester District Attorney Carl Vergari said he was concerned such statements created “the false and dangerous impression that people shouldn't worry about the bottles they bought before that time. reports made Vergari said FBI to him indicate tampering of two bottles found to contain cyanide-tainted capsules appears to have been done during manufacture, but FBI spokesman Bill Baker would ny comment on Vergari'’s statement. The second bottle was discovered Thursday, and came from a store just two blocks from where the first was purchased, in Bronxville, a suburb north of New York City Robert Kniffen, a spokesman for Johnson and Johnson, which makes the drug, said Saturday the company is reviewing the personnel files of about 30,000 employees in TRAIN COLLISION es reviewed the United States. The’company is also going over the production, storage and distribution process, he said, but would not elaborate. Tylenol sold in the United States is made in plants in that country. Tylenol distributed in Canada is manufactured in Canada and is not affected by the U.S. actions. Johnson and Johnson has offered a $100,000 reward for information leading to an arrest in the case. The FDA has tested more than 100,000 capsules, and Young said the testing will continue throughout the weekend. Young said the Westchester cyanide is different from the cyanide found in Tylenol capsules that left seven people dead in Chicago in 1982, and also is different from cyanide stored for testing at MacNeil Consumer Products Co., the Johnson and Johnson subsidiary that produces Tylenol. FBI investigators and Yonkers police will visit the Pennsylvania plant where the fatal bottle of Tylenol was made, Vergari said. Baker said FBI agents across the country are working on the case, checking on “so many investigative leads (to) make some headway and get a break on this. “Right now, we have no suspects.” Diane Elsroth, 23, of Peekski died Feb. 8 at her boyfriend's Yonkers home after taking Extra-Strength Tylenol capsules contaminated with cyanide Death toll may be lower HINTON, ALTA. (CP) The death toll in the head-on crash of two trains last weekend could be lower than 26, Alberta's chief medical examiner says. Dr. John Butt told an Ed monton news conference there are fewer than 26 names on a list of identified victims and of people missing and presumed dead. He re fused to say how many names are on the list. The week-long effort to identify the dead has been hampered by conditions at the crash site, where twisted metal lies buried under piles of grain from the CN Rail freight train that pulled into the path of a Via Rail pass enger train near this west central Alberta community last Saturday Butt said another problem is the possibility that some passengers aboard the east bound Via Rail Supercon tinental bought their tickets from a conductor. Their names would not appear on computer records. The conductor of the pass enger train died Since the accident, officials have reduced the possible body count from as high as 50 to 29 and then to 26. Butt said further checks could reduce the number again “The question of on-train (ticket) sales is why we are guarding the numbers. We have been conservative about downgrading the num bers because of the potential for recovering more human remains than are actually on our missing-person and pre sumed-dead list.” Butt said a list of the missing and presumed dead could be released by today Investigators have deter mined that engineer Jack Hudson and brakeman Mark Edwards were in the front locomotive of the freight train when the trains col lided, he said. RECOVERS BODY “The brakeman’s body was recovered with his seat, but the seat was dislodged and was a substantial distance from the cab of the loco motive.” By Friday, 10 bodies had been recovered. Butt said it will take recovery crews until Monday at the earliest to sift through the flattened, charred remains of a pass. enger coach where most of the bodies are believed to be. Butt said some of the vic tims may never be positively identified because of the poor condition of the bodies. “We're hoping to relieve the anxiety of people through positive identification, but we can't be certain.” At a separate news con ference, Ross Walker, CN's senior vice-president for Western Canada, said the railway has concluded that an error by the freight train crew caused the accident The statement was made after much thought about the anguish it might cause fam ilies of the trainmen, he said, adding the public's right to know outweighed those con siderations. In another development, the Brotherhood of Mainten ance Way Employees called for a public inquiry into the safety of rail inspection and maintenance in Canada Union vice-president Ar mand Passaretti said the number of kilometres of track inspected by each worker has nearly doubled in the last five years. “In some cases, one person ona railway motor car is res ponsible for inspecting 75 to 100 miles (120 to 160 kil ometres) of track every day.” Flaw in shuttle process? WASHINGTON (AP) The presidential commission investigating the crash of the space shuttle Challenger has determined the decision to launch the spacecraft “may have been flawed,” commis. sion Chairman William Rog ers announced Saturday The commission has aksed NASA not to permit any of the people involved in the launch decision to participate on the space agency's in ternal investigative teams looking into the Jan. 28 explosion that killed six astronauts and schoolteacher Christa McAuliffe, Rogers said. “In recent days the com mission has been investigat ing all aspects of the de cision-making process lead ing up to the launch of the Challenger and has found that the process may have been flawed,” Rogers said in a statement issued by com mission spokesman Mark Weinberg. Rogers said President Ron ald Reagan was advised of the Saturday decision. “Dr. William Graham, ac ting administrator of NASA, has been asked not to include on the internal investigating teams at NASA persons in volved in that process ‘The commission will, of course, continue its investi gation and will make a full report to the president,” the statement said Reagan, in naming the 13 member commission Feb. 3. asked for a report from the panel within 120 days. Weinberg said it was Rog ers’ decision, in consultation with other panel members, to request NASA exclude those involved in the launch de cision from investigative teams. A knowledgeable speaking on condition of an onymity, said the ban would apply to various people who were involved in the “checks along the road” that led to the final decision to go ahead with the launch from Cape Canaveral, Fla source, been focusing on the possibility solid-fuel rocket Investigators have one of the boosters powering the space craft from the launch pad de veloped a leak that caused the fiery explosion 58 sec onds after liftoff Most photo graphs ‘released by NASA have shown a small plume of black smoke seeping from where two segments of the booster were connected by a recently seal strike is hurting the airline financially despite PWA's success in maintaining a full schedule, says a leading investment house. In a circular issued Jan. 22, Wood Gundy analyst Steve Garmaise said the strike “has proven costlier to PWA than we had expected.” He added: “The savings in labor expense, estimated at $100,000 per day, have been more than offset by the need to train replacement crews, to pay management staff overtime for their 12-hour days, and to beef up security to deal with disruptions by the strikers.” Although the airline has sustained a full schedule and kept its share of the market, said Garmaise, revenues have dropped because of the loss of maintenance work and cargo business. The refusal by print unions at Pacific Press Ltd. in vi tocarry PWA adi in The Sun and the Province, has also “probably hurt PWA's business.” Garmaise said Wood Gundy previously expected that PWA would earn a small profit of three cents per share in the fourth quarter of 1985 without strike and a small loss with a strike. “It now appears that the airline could suffer a large loss in the fourth quarter, in the neighborhood of 55 cents a share.” However, said Garmaise, the “main reason” for the expected loss is the general economid downturn facing the Canadian airline industry. “Air Canada, CP Air and Nordair have been suffering as well, particuarly in the domestic market. Demand for air travel remains depressed.” Wood Gundy continues to recommend that investors sell their PWA shares, said Garmaise. PWA spokesman Jack Lawless said he has read the Wood Gundy report, and called it “an accurate reflection of some of our costs and some of the challenges we are facing.” Lawless said the strike is hurting PWA, but not enough to make the Calgary-based airline withdraw its concession demands. “There's no question we're paying a premium right now for some of the contract work on major outside maintenance, but it's better to pay the price now versus something we will have to live with over the next few years in terms of a contract.” Lawless said the main problem facing PWA is the depressed airline market and the economic malaise in Western Canada. PWA stock prices have remained stable throughout the strike at about $13 per share, he added. Reforms could save money OTTAWA (CP) New Democrat finance critic Nel son Riis says his party's tax reform proposals for the Feb 26 budget could save the government $3.2 billion a year But the proposals would clearly require a massive re treat by Finance Minister Michael Wilson from his May 1985 budget Ina letter sent to Wilson at the start of last week, the party called for the immedi ate elimination of a number of tax breaks, including the May budget's $500,000 life- time capital gains exemption and provisions for so-called topping up of Registered Re tirement Savings Plans. “The top-up provision pro- vides maximum benefits to those whose incomes are $89,000 a year,” Riis said Friday “We're suggesting that thdse with $89,000 a year probably don't need federal incentives to save for their retirement.” The NDP has also argued that the capital gains exemp tion is of most benefit to upper-income Canadians. According to the May bud get papers, the capital gains exemption will cost Ottawa $700 million a year, though many tax experts say that cost will be much higher. The RRSP changes, if they had not been delayed, would have cost the federal treas ury $80 million this year, an amount that would have in creased in each of the five years during which increased contributions were to be phased in. Other tax breaks are in cluded in the NDP budget hit list, said Riis. OTHER ADVICE The Liberals also are mak ing recommendations about the planned federal budget. Liberal finance crities Don Johnston and Raymond Gar neau say if the general public and politicians are to under. stand where the federal gov ernment is going with its next budget, five-year pro jections on the economy must be included. The two held a news con ference in Ottawa calling on Finance Minister Michael Wilson to reinstate five-year projections,