\ " ne | Castile News onvory 2. 186 BUSINESS NOW $3.3 BILLION CN to reduce MONTREAL (CP) — an its debt market trends and squeezed falling profits, Canadian phy oe mn mare ek my F grgelngrgret planned this year on its multibillion-dollar western expansion. The company may not be verging on insolvency, but it tacos no Senin SS ae eee om bine, OF Jotee. mm raise billion for capital nding throu, Pi pelea drowning in debt. It wants to clear away costly deadwood on the balamee sheet so it can compete effectively when deregulation occurs. “As long as you wake up early in the morning and take the steps we're taking, you're going to make it,” chairman Maurice LeClair said in an interview. These steps include a plan to cap the corporation's massive debt this year — $3.3 billion now — and start reducing it by 1989-90. Two weeks ago, a further $110 million was sliced from the 1986 capital budget of $660 million. CN's debt-equity ratio is approaching 50 per cent debt, up from 44.7 at the end of 1984. The objective is to work that down to about 40 per cent. With profits down, the question is how to meet its capital needs. The government has evinced no interest in letting CN sell shares — it would cease to be a Crown corporation if it did. It also could sell off profitable non-transportation holdings, but those assets are keeping the company in the black. CN will report a profit of between $105 million and $115 million for 1985, but expects net to fall to between $66 million to $70 million in 1986, with domestic rail operations just breaking even, says LeClair. CN’s domestic rail traffic fell by 5.2 per cent last year of bulk-commodity traffie — grain and natural resources — a smaller proportion of the country’s economic output, with growth coming mainly from newer sectors like high-technology. “We feel we've got to have a better feel for what 1985 meant,” says LeClair. “Was it the beginning of a long-term trend? If so, then we don't really have a right to continue (expanding) without taking that into account. So we're pausing . . CN double-tracked 20 kilometres of track in the West last year between Edmonton and Vancouver. No double- tracking was planned for 1986, but there was to be substantial construction in rail yards. Because of poor crops, shipments of export grain were down 23 per cent last year. But there are other clouds over the expansion. CN is upgrading its B.C. North Line between Prince George and Prince Rupert to handle coal exports from new mines in northeastern British Columbia. Those exports, however, are running at less than half the predicted volumes. ‘The resource sector of CN Rail's traffic was especially weak last year. Metals, ores and minerals were off six per cent, and machinery and manufactured goods fell by 10 per cent. Canadian National, said LeClair, is committed to expanding its western rail network as the need arises, not according to a specific timetable. Right now the system has plenty of reserve capacity The capital budget now stands at $550 million, down from the $779 million spent last year and $660 million in earlier 1986 estimates. Spending by the railway will be about $390 million, Gown more than 50 per cent from last year. The railway could find itself at a serious competitive d ge in a gulated if it hasn't “downsized” its operations, says LeClair. Canadian Pacific Ltd. is well ahead of CN on that score Strike won't deter Murdoch LONDON (AP) — Publish- and agreed to work, defying er Rupert Murdoch vowed to a strike by 6,000 production jorkers who have been cut out of Murdoch's new high- largest-circulation paper, The Sun, off the streets Sat- question of The Sunday ” Sunday Times and the tabloid News said Wapping is electric and everybody is pulling toge ther.” said: “Obviously we have still got to get them (the news papers) out and we have still About 100 members of the electricians unions, who have refused to go on strike, are working -at the Wapping plant and printing the papers there for the first time. But Arthur Brittende: of The World met Saturday “The atmosphere down at for 's News International company w. Cc dion C got to get them distributed.” The strike was announced at a joint news conference Friday night by Brenda Dean, general secretary of the Society of Graphical and Allied Trades and Tony Dub bins, general secretary of the National Graphical Associ ation. a Doors Open 9:30 o.m. wu Mortgage rates climb TORONTO (CP) — news about rates is that they've gone up. The good fews is that most bankers and home buyers are guessing they won't go much higher and may even come hack down in the next few months. All the major Canadian banks and trust companies have increased mortgage rates in the last week. They say they had to boost interest rates to attract deposits as investors, worried by the slip of the Canadian dollar, look to other countries. It means that an $80,000 The banks and trust companies has jumped to 10.75 from 9.75 per cent. Over the 25 years, if the years, but in a five-year the shorter-term mortgage — increasing to $811.56 a mont! from $797.65 two weeks ago — as five-year rates ad vaneed to 11.75 from 11.5 per cent. Over the life of the loan, financed at the same rate, the total additional cost of the in. crease would be $4,173. the Bank of Montreal's mort movement of the Canadian dollar. “If the dollar crisis passes and the dollar makes some upward adjustments then you will see rates come down,” he said. In any event, Alton is not expecting any major sur prises in mortgage rates this year. “The outlook for the year as a whole is for relatively stable rates.” William Clarkson, senior leo 4 gage corp i said the mortgage rate movement over the next few months will be determined by the i" 25- year period, costs $756.31 a month today, compared with $702.17 two years ago because the mortgage rate since then at most major Cominco to sell Fording Cominco Ltd. and Cana dian Pacific Limited have an- nounced that an agreement has been reached for the sale by Cominco of its 40 per cent interest in Fording Coal Limited to Canadian Pacific for $87 million. The boards of directors of both companies will consider the proposal next month. If approved, closing of the sale is expected during the first quarter of 1986 and Cominco will report an extra ordinary gain on the transac tion of approximately $42 million. Proceeds from the sale will be used by Cominco to retire bank indebtedness. Weekly Stocks TORONTO (CP) — Oil was a wild card in stock markets this week and it has left analysts with mixed signals. Plunging oil prices took the Toronto Stock Exchange ‘to its biggest loss since Decem ber 1981. But the market snapped a four-day losing streak by Thursday. On Fri day bargain hunters drove the TSE 300 composite index up 36.82 points to 2,810.14 Advances outstripped de clines 481 to 273 with 322 unchanged. Volume was heavy at 23.6 million shares. But Friday's rally was of little comfort when compared to other important numbers. Over the week the TSE lost 59.13 points and $4.5 billion dropped off the value of list. ed stocks. Had it not been for Friday's recovery, the loss in value would have been dou. ble. In New York, the Dow Jones industrial average rose 18.69 points to 1,529.93 in a similar round of bargain hunting. That cut the Dow's loss for the week to 6.77 points. In Toronto, the week was a disaster for oil and gas stocks. Now in a three-week slump, they fell another 157.44 points or 4.85 per cent of their position on the com. posite. Friday, they gained 27.13 to 3,086.51. The busiest oil and gas stock of the week was Gulf Canada Ltd. Pp of mortgages at the Toronto-Dominion Bank, said that of the new mortgages issued Wednes day, 32 per cent were for five-year terms, 29 per cent for one year, eight per cent for two years and 27 per cent for three years. Potential home buyers are not leaving the market be- cause of the rate increase NOSYJONY JOWM_AYVW 2} People’s Insulation Services *500 ees CONTINUES Super Tuesday Specials ird Plaza Only Tues., Jan.a8 Only. While Stock Lasts. Quantities Limited on Some Items. sirloin tip roast Canada grade A beef 29 Mexican grown tomatoes Canada no. 1 economy pack Store Opening 9:30 a.m. bread =? Limit 2 per family purchase While Stocks Last. Special half ork loin ribs or tenderloin portion netted gem potatoes Better Buy margarine Limit 6 prints per family purchase pink salmon steaks California grown cauliflower .98 whipping cream or sour cream California grown carrots Prime Choice tomatoes Fortune mushrooms stems ond for 98 Limit 6 tins per family purchase GET YOUR CASH CARD TODAY! ror 24-nour TELLER SERVICE at Castlegar and Trail pus Over 200 ATM's soon in Canada! Castlegar's Minor Hockey Weekend HOCKEY Tre. 4 — CasNews Photos by Phil Calderbank . Castlegar Minor Hockey WEEKEND . . Association kicked off its annual Minor Hockey Weekend at Community Complex and Pioneer Arena on Saturday. Games shown (clock wi: from top right) are, Castlegar Novice No. | team trying to score on Jattco (Spokane), with Castlegar winning 7-0; Castlegar Dairy Queen MF ine hard against ONB Bon- jegar coming out on top 6-2 and scenes from Castlegar Reps vs. Nelson with ——t also winning 5-4. Action continues arenas. tams (Spokane) with Cas! today at bo’ NHL LAST NIGHT Leafs fall to Habs MONTREAL (CP) — Bobby Smith scored with 1:22 remaining in the overtime period to give Montreal Canadiens a 3-2 triumph over Toronto Maple Leafs in National Hockey League action Saturday night. Smith was alone in front of Toronto goaltender Tim Bernhardt when he took a pass Mats Naslund and put the puck into the lower right corner of the net. Toronto's Borje Salming forced the overtime when he scored his second goal of the season with 51 seconds remaining in the third period. Salming, who has missed 35 games with a combination of ailments, chipped at a lose puck in front of Canadiens goaltender Patrick Roy and the puck bounced in under the crossbar. Less than two minutes earlier, Ryan Walter gave the Canadiens a 2-1 lead on a low slap shot that went between Bernhardt's legs at 17:36. FLYERS 1 BLUES 0 ST. LOUIS (AP) — Defenceman Brad McCrimmon converted Dave Poulin's goal mouth pass into his sixth goal of the year, giving Philadelphia Flyers a 1-0 triumph over St Louis Blues behind rookie Darren Jenson’s goaltending. MeCrimmon's goal came at 13:11 of the opening period. enabling Philadelphia to avenge a 2-1 setback against St Louis here Jan. 4. In 19 NHL campaigns, the Flyers hold a 55-26-15 record against St. Louis. The 25-year-old Jenson kicked out 48 shots, including 24 over the final 20 minutes, to register his second shutout OILERS 5 KINGS 2 EDMONTON (CP) — Edmonton Oilers did what they do best in the National Hockey League — beat Smythe Division rivals — with a 52 victory over Los Angeles Kings. Glenn Anderson, Wayne Gretzky, Mike Krushelnyski, Mark Napier and Mark Messier scored for Edmonton as the Oilers improved their record against teams in their own division to 16 wins, two losses and three ties. The Kings, 36 points behind the Oilers, had more shots on goal than Edmonton but couldn't cash in on their opportunities, settling for goals by Dave Taylor and Mark Hardy. Gretzky, who had an assist in addition to his goal, extended his points-scoring streak to 39 games, 12 short of the 5Sl-game record he set in 1983-84 Paul Coffey had an assist on Napier's goal to extend his point-seoring streak to 28 consecutive games, the longest ever by an NHL defenceman FLAMES 5 PENGUINS 2 CALGARY (CP) — A goal by left-winger Jim Peplinski midway through the third period earned the Calgary Flames a 52 victory over Pittsburgh Penguins. ‘The goal, his 17th of the season, was Peplinski’s second of the game and came on a strange play. His original shot had trickled through the legs of goalie Gilles Meloche and sat in the crease, near the post. Peplinski’s momentum didn't enable him to play the puck as he swooped in on goal, but he picked it up, circled the net and, with Meloche down in the crease, tucked the puck into the net. BLACK HAWKS 3 ISLANDERS 3 UNIONDALE, N.Y. (AP) — Al Secord scored his 24th goal of the season from a scramble in the crease at 11:38 of the third period, giving Chicago Black Hawks 3-3 tie with New York Islanders. Although the Black Hawks have won only two of their last 21 games against the Islanders, the tie enabled them to post a 1-0-1 record in their two visits this to Nassau Coliseum, where they had failed to win in 22 games prior toa 4-1 vietory Jan. 4. Chicago's Ed Olezyk opened the scoring on a power play at 8:49 of the first period when he banged a rebound past goalie Kelly Hrudey for his 18th goal. Mike Bossy tied the score at 18:08 with his 35th goal on a 15-foot shot from the slot WHALERS 7 JETS 2 HARTFORD, Conn. (AP) — Linemates Wayne Babych, Ray Ferraro and Sylvain Turgeon each scored a goal and combined for six assists as Hartford Whalers defeated Winnipeg Jets 7-2 The win was the fifth in a row for the Whalers — a seasonal high — and pushed Hartford six games over .500 for the first time in franchise history. The win also kept the Whalers, 26-20-1, in third place in the Adams Division. During the winning streak, Hartford has outscored its foes 32-11. The Jets, 15-31-5, have lost three in a row and fell to 3-7-1 in their last 11 games. Wayne Babych led the offence with one goal and three assists including an assist on Turgeon’s winner in the second period. Hartford was also sharp in specialty team play, clicking on three of six power play chances while killing all nine Winnipeg opportunities. NORDIQUES 4 SABRES 3 QUEBEC (CP) — Brent Ashton scored his second goal of the night with less than four minutes remaining in the third period to lift Quebec Nordiques to a 4-3 victory over Buffalo Sabres. Ashton outraced Buffalo defenceman Mike Ramsey to the puck deep in Sabre territory and beat goaltender Jacques Cloutier with a low wrist shot to the stick side at 16:24. It was his 16th goal of the season and the 125th of his career. CAPITALS 6 NORTH STARS BLOOMINGTON, Minn. (AP) Bengt Gustafsson scored a goal and assisted on four others, including two by Dave Christian, leading Washington Capitals to a 6-3 victory over Minnesota North Stars. The Capitals were superb in penalty killing situations. yielding only one goal in eight Minnesota manpower advantages. Gustafsson's goal was scored while Minnesota was on a power play Washington's victory was its second over Minnesota in the last five days and gave the Caps a 29 140 record. BRUINS 6 RED WINGS 3 BOSTON (AP) — Rick Middleton scored three goals in a game for the eighth time in his National Hockey League career to lead Boston Bruins to a braw!-filled 6 3 vietory over Detroit Red Wings Before the game began, Detroit coach Brad Park was notified he had been fined $5,000 and suspended for six games, effective next Friday, for ordering his players to leave the bench and join in a free-for-all in Toronto on Jan. 13. ‘The game was marred by eight fights, including five in the first period. The featured bout was between Bob Probert of Detroit and Gord Kluzak of Boston, who exchanged right-hand punches for a full two minutes late in the opening Referee Andy Van Hellemond called 136 minutes in penalties — 70 against Detroit and 66 against Boston. Game caps crazy week NEW ORLEANS (AP) — Jim MeMahon Week ‘is over. Now, it's time to see if it's Jim McMahon Day. A week ago, the plot for today’s Super Bow! looked simple. The upstart New England Patriots would try to cap an unexpected climb from the National Football League pack by beating the unbeatable Chicago Bears. Instead, it’s simply the cli max to a multi-ring extra vaganza starring the Chicago quarterback, featuring the hitherto anonymous Hiroshi Shiraishi, and relegating last week's heroes — Walter Payton, Irving Fryar and even William (The Refriger ator (Perry — to supporting The Super Bow! became a sideshow to the McMahon Show The game presents the same contrast it has since the principals were decided two weeks ago. The National Football Con ference is represented by the mighty Bears, 17-1 including two straight playoff shut outs, 10'/:-point favorites and unarguably the league's most dominant team this year. Their main weapon: Buddy Ryan's unique 46 defence, which can throw the best- honed offence into chaos. The American Football Conference is represented by the Patriots, first team to get to the Super Bow! by winning three straight road games. They did it because they forced 16 turnovers and be cause some higher power bounced the ball in the right direction at the right time. McMAHON'S WEEK But last week belonged to McMahon, who peers (and often sneers) at the world through dark glasses and who counts among his heroes Randle Patrick McMurphy, protagonist of One Flew Over The Cuckoo's Nest. “Everyone thought he was crazy, but he wasn't,” Me- Mahon says. “That's the way Lam. “Tm just trying to be my self. There's nothing caleu lated about me. I don't sit around and think up these weird things. They just hap- pen.” They began happening Monday night when McMa hon arrived for the sixth Super Bow! to be held in New Orleans. ‘IL FRIGORIFERO' Perry wor By JACK CAVANAUGH NEW ORLEANS (REUT ER) — In the space of a few months, William (the Refrig erator) Perry has become a 308-pound American folk hero. Surprisingly. the 23-year old rookie defensive tackle of the Super Bowl-bound Chi cago Bears is also well known in Italy, where he is called I! Frigorifero. And Perry may be as well known in Japan and Britain where, as in Italy, American football is becoming increas. ingly popular, both as a spectator and participant sport. “The Refrigerator is very popular in Italy,” Rino Tom assi, the sports director for Channel 5, the Italian sports television network, said Fri day. “Many Italians now fol low American football and colorful players like Perry have made the game more popular.” Tomassi is in New Orleans te do the commentary for Channel 5 of today’s Super Bowl game between the Bears and New England Pa triots in the Louisiana Su perdome. The game will be televised live in the Milan area at 11:15 p.m. local time He was already an estab lished flake for his sunglasses and headbands and his habit of saying “no” when the rest of the world was saying “yes.” The reputation was enhanced when he flashed, on national television during the playoff game against Les Angeles Rams, a ° Rozelle headband to protest an order to McMahon reported the in question was whether any- thing could be done to keep by the NFL issi shed a headband bearing the advertising logo Adidas. MeMahon's first task was to complain that Bears’ man- agement had refused to fly in an Pp ist who had been treating a buttock bruised by the heimet of Los Angeles linebacker Jim Col- lins in Chicago's 24-0 shutout of the Rams in the NFC championship game. His sec ‘ond was to head for Bourbon Street in the French Quarter. where he took advantage of the Bears’ last night without a curfew, interrupting the party to hassle with a pho tographer who tried to take his picture. INJURY IMPROVES Shiraishi, the official acu puncturist of the Japanese track team, was finally per mitted to come to town Wed nesday. Almost immediately, pro guard John Hannah, who may be the best to play the game. “That's where the game will be won or lost,” says Eason, the third-year quar- terback who threw only 12 passes in the 31-14 win over Miami that gave'the Patriots the AFC championship. “Our front five against their front.” - The Chicago offence fea tures Payton and the impro- visational play-of McMahon. In the Rams game, he threw out a draw play sent in from the bench and rolled out to throw a 22-yard touchdown pass to Willie Gault. Idwide hit and on tape delay throughout Italy on Monday night. Perry. overweight even as football players go, may not be a household name in Japan. But Kaoru Kubota, who is here with a 10-man television crew to televise the game throughout Japan for the Tokyo Broadcasting System, says the massive Bears tackle has become a sports celebrity of sorts in Japan. KNOW STARS “Japanese who follow sports know who Perry is, and they know most of the other National Football League stars,” said Kubota, whose account of America’s premier sports attraction will be televised in Japan on Monday night. “About five million people watched last year’s game in Japan, and we expect about six million to watch it on Monday.” The game will also be tele vised in about 30 other coun tries, say NFL public rela tions officials. Among them will be Britain, where the game will be shown on Chan nel 4, with Briton John Smith, a former placekicker for the Patriots, serving as the analyst.