As the end of the 1964 tax year looms, many small investors face a conundrum — how to make best use of a few thousand dollars they may have in hand. Should it be plowed into the house mortgage, thereby reducing the ultimate amount that goes to interest, or would it be better to put the money into a registered retirement savings plan, and gain a tax benefit. Tax experts advise against haste. Depending on a person’s income and age, they say it might make more sense — and cents — to put the extra eash into an RRSP rather than the mortgage. “The problem with putting all your eggs in a house . . is that you can't turn an owner-occupied house into an income-producing asset,” says independent financial consultant Tom Delaney An income-producing asset is an asset that can produce cash on which you can live. This might be stocks, which generate dividends; bonds which generate interest; or an RRSP, which generates retirement income payments. Owner-occupied houses, on the other hand, can't produce income. AGE CRUCIAL It’s particularly important for people to keep this in mind if they are approaching retirement age, says Delaney He says there are thousands of elderly women living alone in houses they own but who are impoverished be- cause they don’t have savings to give them an income. Those houses could be turned into retirement income by selling them, but that’s time-consuming and the your RRSP. It's the RRSP that will generate interest to po 9 mega ry nny ar erates caper If you are young, it usually is better to put the money into a mortgage, says Delaney, unless you are among the top income earners. Those earning high incomes pay taxes of 50 per cent while average income earners pay 35 per cent or less. If you put $1,000 into an RRSP and your Mheome is taxed at 35 per cent, your tax refund is $350. At 50 per cent, the refund is $500. SYSTEM BIASED Delaney says this is an example of how the “biases are at the top end of the system.” In other words, the higher your income, the more you get back by taking advantage of tax shelters such as RRSPs. Delaney's view is borne out in a 1979 study by the federal Department of Finance. It found that the top 30 per cent of income earners are better off putting their money into an RRSP than an owner-occupied house. For the bottom 70 per cent, however, it generally works out better to put money into an owner-occupied house, said the study. Owner-occupied houses, as opposed to houses for rental income, provide tax-free capital gains when they are sold. Delaney says it's necessary to keep in mind the importance of having retirement income. He says public pension plans may be downgraded or eliminated in future years and it will become even more important for people to provide for their own retirement. Splitting extra cash between an RRSP and a retiree would have to look for a new place to live If you are near age 65, Delaney says it might make more sense to continue mortgage payments and build up mortgage shouldn't be ruled out, he says. “It almost boils down to what you're most comfor table with.” UNTIL HE WAS CAUGHT Dealer lived ‘good life’ VANCOUVER (CP) = George Allan was living a good life in 1981. He drove a Porsche and opened an auto- mobile business, repairing Porsches and Volkswagens. He bought things — appli ances, consumer goods, clothes — that he didn't seem to be able to afford. In fact, he couldn't afford them — at least, not legally George Allan was sup plenting his income with profits from trafficking in marijuana. He was convicted of the offence in 1981, but his prob lems weren't over: Once the police were finished with him, the taxman moved in Recently, Allan was hit in provincial court for more than $14,000 in unpaid taxes that he owed on $70,600 in come he hadn't reported Allan was the first drug trafficker ever convicted of tax evasion in British Col umbia. Others have been caught in civil cases in which the tax department reassesses their tax returns and demands its fair share — but Allan's case was the first to successfully go through the criminal courts in this province. MORE COMING Revenue Canada investi gators Rod Jamieson and Phil Seagle warn there are more convictions on tax eva sion to come “We've collected a lot of money in drugs,” Seagle said “This is just the first one we've prosecuted.” Collecting taxes on ill-got ten gains isn't new. Revenue Canada has reaped a total of $90 million across the coun try in the last 5' years $11 million of that in British Columbia most from sim ple civil-suit reassessments. Revenue Canada gets tip ped to most of its investi gations by RCMP, city police forces and other anti-crime agencies, Jamieson said While the chase criminals, they often discover profits from the crimes. Whether it's money from bootlegging or gambling or police IBM charged in antitrust suit WASHINGTON (AP) The U.S. Justice Department Tuesday filed an antitrust suit against International Business Machines Corp challenging its acquisition of ROLM Corp., which last year built about 50 per cent of all computers designed to meet rigorous military specifica tions At the same time, in U.S. District Court, the govern ment filed a proposed con sent decree that would re quire IBM to divest itself of ROLM’s Mil-Spee Computer Division within six months. The consent decree will become final after a 60-day period for public comment. The suit contended the ac quisition could dramatically lessen competition for “mil spec (military specification) commercial-based compu ters.” Assistant Attorney Gen eral J. Paul McGrath said ROLM and Norden Systems CHEV °7888 MALONEY 364-0213 -TON 365-2155 Inc. accounted for more than 80 per cent of the total annual domestic sales of such com puters each year from 1980 to 1983 and that ROLM’s mili tary specification computer sales last year were $75 mil lion — about half the total for such computers The complaint said IBM has indicated to the military it plans to start taking orders in 1985. Talking to the —— Castlegar News Do you have a news story or feature you want to tell us about? stolen goods or fraud or drug trafficking doesn't really matter — as long as there's money and profit involved, the taxman is legally entitled to a cut That requires evidence to prove that the criminal has made more money than the amount he declared on in come tax forms. Once a target is identified, a Revenue Canada investi. gator will compare the indi viduals stated income to his lifestyle. If Revenue Canada can prove a person has spent or bought more than he has de clared — thereby proving the person's “net worth” is higher than his stated income Revenue Canada has the basis for a criminal case HARD TO CONVICT But the need for proof of “net worth” makes it diffieult to convict a drug trafficker In crimes such as fraud or stock exchange scams or loan-sharking, it's easy to find a “paper trail” of docu mentation and bank accounts to prove net worth. “That's the problem deal ing with people in the drug business it's cash,” said Jamieson. “They document trail.” leave no One of his favorite cases involved an importer of mari juana and cocaine who was found to have a “net worth” of $11 million in 1981. Most of the money had gone into apartment buildings. The trafficker was con victed and to a lected to prove the man had a “net worth” that exceeded his stated income. Revenue Canada collected $1 million in taxes from the man. It would have been more, said Jamieson, but an exam ination of the man’s records showed he had been ripped off in a large drug deal in which cocoa beans had been substituted for cocaine in an international shipment. The rip-off was “the cost of doing business” and a tax write-off, Jamieson said. Allan made it easier for Revenue Canada — he plead ed guilty to tax evasion. PUBLISHER Castlegar News is gubliahed by Castle News Lid Mail subscriptions rate to the CASTLEGAR NEWS is $30 per yeor ($34 in communities where the post office has let Second class mail registration number 0019. ERRORS The Castlegar News will not be responsible for ony errors in advertisements after one insertion 11 is agreed by the adver tiser requesting space that the rors occur in the publishing of an advertisement, that por seven-year jail term, but didn't leave enough of a trail to prove criminal intent of tax evasion However, enough evidence was col Would you like to speak to someone about the delivery of your paper? Do you want to discuss a classified or display advertisement, or have you ever wondered whom to call regarding a billing or business matter? The following guide will put you in touch with the right department. Clip it and keep it by your phone for reference Newsroom Circulation Classified Advertising Retail Advertising General Office & Printing 365-3517 365-7266 365-2212 365-5210 365-7266 event of on error, advertising or services at a wrong the or services not be sold. Adverts: is merely on offer to sell. The offer moy be withdrawn at ony time NOTICE OF COPYRIGHT Full, complete and sole copyright in any printed mat ter produced by Castle News Lid. is vested in and belongs to Castle News Ltd. provided ever that copyright in THAT PART AND THAT PART ONLY of ony advertisement price. need he advertiser shall remain in ond belong to the advertiser CASTLEGAR NEWS Established Aug. 7, 1947 Twice Weekly May 4, 1980 Incorporating the Mid-Week Mirror published from Sept. 12, 1978 to Aug. 27. 1980 LV. (Les) CAMPBELL Publisher Aug. 7, 1947 to Feb. 15, 1973 Brown Certified General Accountant 270 Columbia Ave. Castlegar Ph. 365-2151 MOROSO, MARKIN & BLAIN Certified General Accountants 241 Columbia Ave. Castlegar Ph. 365-7287 Soligo, Koide & John Chartered Accountants 615 Columbia Ave. W irs) Castlegar Phone 365-7745 Henry John, B.Sc., C.A. Resident Partner A B,C,D... orX,YorZ Yes, whether your business name starts with A or with Z, Business Directory advertising is for you! RATES ARE ATTRACTIVE, TOO! Phone 365-5210 for Full Details sore 1 ( (oeasa, ere Appliance Parts Service Dept. All Brand Nomes Serviced All Parts Stocked Rebvyilt Timers Used Appliances & conetonmente Coin-operated Machines Industrial Loundry WH ALSO SERVICE: «KENMORE MOTPOWNT * ETC. INGLES CASTLEGAR PLUMBING & HEATING LTD. oheminte Ave. 346-3008 Russell Auctions 399-4793 Thrums Buy or Sell by Auction tome . ieee te as a * ae Rite aa A 9-27 “‘Let’s go over to that new restaurant with the outside terrace and get some french fries.’’ 2237-6th Ave., Castlegor Invite you to call them for a free moving estimate. Let our (apreconselee, jell you about vervices which have made Wil Williams the most respec- ted name in the moving business. MM L LeRoy B.S. 0.D. OPTOMETRIST 1012-4th St., Castl (ASK CHES OR JOHN FOR BEAUMARK APPLIANCES WITH B.E an ctor TO PROVIDE ALL PARTS y OF THE MACHINE L AND ALL SERVICE FOR THE LIFE TRAIL, B.C. ROOSTER READY MIX CONCRETE Slocan Valley Also Supplying Drain 355-2570 PETER FERGUSON CLOTHING, DRAPERIES, BEDSPREADS Everything on cons! NEARLY NI NEW SHOP ve., Trail WW LOW. LOW PRICES CARPETS - LINOLEUM TILES - CERAMICS F. PIRSH CONTRACTING 2045 Columbie Ave., Trail * Renovations © Custom-built kitchen cabinets * Residential & Commercial * Big jobs or small jobs Ph. 368-5911 See us tor: * Complete nursery stock * House plents * Florist FULL LANDSCAPING SERVICE COLUMBIA SEALCOATING AND PAVING Whether you: with A oF M, orX,YorZ You' ll find Business Directory advertising pays. PHONE 365-5210 FLOOR INSTALLATIONS R.R. No. | Winlew, B.C. VOG 230 226-7603 CASTLEGAR FUNERAL CHAPEL Dedicated to kindly, thoughtful service. Granite, Marble and Bronze Plaques Phone 365-3222 The Plumbing & Heating Centre American Standard Volley Fibreboth Jocuzzi * Crone Duro Pumps & Sotteners PVC Pipe Fittings Septic Tonks 365-7705 2317 - 6th Ave. Castlegor Phone 365-3361 Tues.-Fri.9.a.m.-5 p.m. JT. (7 TIM) A ALLAN Optometrist 366 Baker St. Nelson, B.C. Ph. 352-5152 —_—_—_—_——— Castlegar Plumbing & Heating Ltd. Quality Wholesale Plumbing & Heating Supplies Complete installations & Professional advice Commercial & industrial 1008 Columbia Ave. 365-3388 ALL TYPES OF COMMERCIAL SENTING * Ler . Brochures . rote Tickets Etc OFFSET’ catrewesss WEB PRESS FACILITIES CASTLEGAR NEWS 197 Columbie Ave. 348-7266 Peppercorn Dining Under the Palms et Uncommonly Affordable Prices TERRA NOVA MOTOR INN 1001 Rossland Ave., Trail Reservations 364-2222 THE COLANDER SPAGHETTI HOUSE JEWELLERS pt alte Diomend Ringe Wedding Ringe Speciolizing in alien cuisine For Reservations Phone 364-1816 1475 Cedar Avenue Treil, B.C COLEMAN COUNTRY BOY SERVICE Sump & Septic Tonk Pumping Phone 365-5013 3400 - 4th Avenue Chimney Services Ltd. * Complete Masonry Work * Chimney Lining © Certified Fire Safety . . Columbie A 366-6141 SELKIRK SERVICE TREE Pea Design, instotlation and PHONE DAVID ANYTIME 365-6810 Castlegor Notes from Charters Page B3 The six winning numbers in Saturday's Lotto 6/49 draw are five, 30, 34, 36, 43 and 49. The bonus number was 17. The $500,000 winning number in Friday's Provincial lottery draw is 3297277. There are also subsidiary prizes. Ph. 365-3328 Collect VOL. 37, No. 95 WEATHERCAST Mainly cloudy today with some sunny periods and a tew isolated snowshowers. Highs near 3, lows near -3. Increasing clouds on Monday 50 Cents > % a Castl CASTLEGAR, BRITISH COLUMBIA, SUNDAY, NOVEMBER 25, 1984 ES 2 Sections (A & B) Saturday 9 a.m.-12 noon ————s . Dovid Littley samples b FOOD bord during K Scout Council annvel dinner meeting. The meeting, held Thursday. attracted more than 95 Beavers, Cubs, Scouts, Ven tures, Rovers and parents. See story, page A3. Controversy raised By ADRIAN CHAMBERLAIN Staff Writer The Retail Clerks’ Union has charged that a contract approved by employees at the new SuperValu store in Castieaird Plaza is “a sweetheart deal” between manage ment and the negotiator for the workers but the accusation has been called “sour grapes.” Hugh Finnamore says the complaint is simply “sour grapes” because the 19 employees at the new SuperValu store rebuffed overtures to join the Retail Clerks’ Union Finnamore is secretary-treasurer of the Textile Pro- cessors Service Trades, Health Care, Professional and Technical Employees International Union (TPSTH CPTEIU), which represents the employees at the new store. He also negotiated the contract for the store “I think the Retail Clerks are upset, and are trying to do everything they can,” agreed George Wood this week Wood is vice-president of Ferraro's Ltd., which owns the two SuperValu stores in Castlegar, and 18 others in B.C. and Alberta. Workers in the other Castlegar SuperValu belong to the Retail Clerks’ Union, which represent most of the larger retail food stores in B.C. The Textile Processors union was certified as a legal trade union in B.C. on Oct. 29 following Labor Relations Board hearing in Vancouver The new SuperValu is the sole retail food store in B.C. with employees in the TPSTHCPTEIU. The only continued on page A2 FROM MILL ENTRANCES Marine workers remove pickets By CHERYL CALDERBANK Staff Writer Workers at Westar Timber’s pulp- mill and only some of the sawmill workers are back on the job, after marine workers at Westar agreed at an informal Labor Relations Board hear- ing late Wednesday to lift pickets from the entrances to the two sites. Striking marine workers shut the sawmill and pulp mill down for less than 24 hours on Wednesday when the members of the Canadian Merchant Services Guild went on strike. At a preliminary LRB hearing on Wednesday the Guild agreed to remove its pickets from the entrances to the sawmill and the pulp-mill, allowing members of the Internationa! Woodworkers of America and Pulp, Paper and Woodworkers of Canada Union to return to work. Guild representative Conroy said that at the LRB meeting Wednesday, the Guild agreed to pull its pickets down from the sawmill and pulp-mill site. warrmenr vacancy raie 12.6 per cent By CasNews Staff Castlegar had an apartment vacancy rate of 12.6 per cent in October, according toa survey by the Cranbrook branch of Canada Mortgage and Housing Corp. But it’s much worse in other Kootenay communities. Of the 230 rental apartment build ings and rental townhouse project units surveyed in Castlegar, CMHC found that only 29 of them were vacant. The apartment vacancy survey, which was conducted for the various municipalities in the East and West Kootenay region, covered all rental apartment buildings and rental town house projects with six or more units which had been operating a minimum of six months. The survey showed that the highest vacancy rate is in Fruitvale with 48.6 per cent. Of the 74 units surveyed, 36 were unoccupied. The lowest vacancy rate is in Golden, with 4.9 per cent of the units empty Of the 144 units surveyed, only seven of them were vacant. Trail had a 13.0 per cent vacancy rate and Rossland 26.1 per cent. It was 8.2 per cent in Warfield, 32.0 per cent in Nelson, 6.5 per cent in Grand Forks, 11.1 per cent in Cranbrook, and 10.8 per cent in Creston. “There wasn't a formal injunction,” Conroy noted. The pickets were taken down from the two sites about midnight Wednes. day, said Conroy. Ken Halliday, Westar’s president of Human Resources, said Westar had applied for a cease and desist order with respect to the location of the pickets. During the informal hearing, which lasted 7'/ hours, the two sides were able to work out an agreement. As a result of the agreement reached, the guild is allowed to keep their pickets up at the log-handling area, in front of the unloading crane in the log yard, Halliday said. They can also picket near their normal working headquarters north of the Hugh Keen- leyside dam, he added. Al Blessin sawmill industrial rela tions manager, said the picketing at the log yard prevents the delivery of logs to the sawmill, which has resulted in only 80 of the sawmill’s 250 employees called back to work since the other two pickets were lifted. “We have no way of feeding the saw mill (with logs),” Blessin said, without the use of the log yard. He said the only way of feeding the mill is by way of the waterway. Even the trucks that bring in some of the logs, are dumped into the Columbia River before they are brought up to the sawmill. About 15 per cent of the logs used by the sawmill arrive by truck, the rest arrive on the Arrow Lakes. As a result of the pickets, there is only a limited supply of lumber left, and Blessin said if the strike continues, the mill will be totally shut down in about two weeks. At present, the planing mill is running on two shifts, processing the remaining rough tumber, while the finishing end of the mill is running a day shift. Bert Collier said Friday, the mill is back to normal after being shut down Wednesday because of the pickets. He said the pulpmill continues to get its supply of pulp from other sources, noting that the pulpmill is never as dependent on the guild for logs as the sawmill is. “We have had to supplement our normal supply of fibre somewhat,” Collier said. Second artificial heart transplant underway LOUISVILLE, KY. (AP) A man whose heart was so weakened that even wheelchair rides “just about knocked the bottom out for him” gathered his family about him Sat urday for a special dinner on the eve of becoming the world’s second person to receive a permanent artificial heart William Schroeder, 52, of Jasper Ind., described by doctors as anxious but willing to take a possibly life saving chance, cleared the way for the implant of the Jarvik-7 polyurethane heart by signing a lengthy consent form Friday His wife, Margaret, and Dr. William DeVries, the only surgeon approved by the U.S. government to perform the surgery, were present for the signing. The consent form warns, among other things, that the replacement of Schroeder's own diseased heart is experimental with no guarantee of success, DeVries has said The operation, which DeVries, said would last from three to eight hours, was scheduled to begin about 8 a.m today at Louisville's Humana Hospital Audubon, just one week short of the second anniversary of the first perm anent mechanical heart implant, the hospital said DeVries, 40, also performed the first implant, at the University of Utah. The recipient, the late Barney Clark, sur vived for 112 days with the artificial heart. Without the procedure, Schroeder's chances of living more than two weeks are slim, Dr. Allan Lansing said Friday. Lansing is chief of Humana Heart Institute International, the heart research branch of the hospital's parent corporation, Humana Inc. “Just going down for an x-ray in a wheelchair just about knocked the bottom out for him,” Lansing said. “His blood pressure dropped and he was very cool, sweaty and weak. “He's very anxious, but he realizes fully that he is deteriorating steadily and he really won't get out of the hospital without something else done.” The hospital dinner gathering Sat urday with Schroeder's wife and six children was planned as “the equi valent of a Thanksgiving dinner.” Lansing said Schroeder's general physician in Jasper, J.P. Said, said Schroeder was not a candidate for a human heart transplant because he is over 50 and has diabetes. ‘If he was a transplant recipient, the (anti-)rejection drugs just throw diabetes out of control,” Sald said Dr. Phillip Dawkins, Schroder’s heart specialist in Jasper for two years, said Friday that his patient's lungs and kidneys function “quite well.” Lobby government, faculty says By CasNews Staff Selkirk College faces an $810,000 decrease in its budget next year if no new programs for the college are approved, principal Leo Perra. Perra said even if all new are approved, the college will still face a potential drop in funding of $200,000 to $300,000. Selkirk College Faculty Association has suggested the college board and administration lobby the provincial government or make more visible efforts to get the government to inerease its priorities for post-secondary education. Association representative Margaret Nickle told s board meeting this week that faculty feel moral will suffer if staff is reduced. “We have some good instructors who have oppor tunities elsewhere and will leave the system,” Nickle said. “Something the board needs to be aware of is when jobs are threatened, instructors will start looking elsewhere. It is the good instructors we will tend to be losing.” Perra said that when the faculty association makes a request for the board to have a higher profile and to lobby more aggressively it shoulds be able to bring forward with “pretty strong documentation” that it works in the province. Board chairman Colbert said, “The problems we are all aware of. The solutions, we welcome any assistance we can get.” Elsewhere, response has been “supportive” from groups contacted to form a joint committee to study the feasibility of establishing a transportation service in the West Kootenays, Perra said in his report to the board. A Jan. 24 meeting has been scheduled to organize « terms of and define the scope of the task. West Kootenay school districts, municipal councils, and the Regional District of Central Kootenay and Regional District of Kootenay Boundary were contacted for response in setting up a joint committee. Rocyden Prwapens oy Mo bopert a change in the Selkirk College taltion fees for senior citizens. Perra said college bylaws say that seniors don’t have to pay any tuition fees, but the policy is creating difficulties for extension centre activities which require a minimum fee-paying enrolment to offer a program Perra proposed that the tuition fees be amended to say that seniors may take courses without paying tuition fees, subject to available space and a sufficient fee-paying enrolment. Seniors will have to pay for materials and other non-tuition fees. ‘The motion was not voted upon because there wasn't a quorum at the meeting. Only three of the seven board members were Meanwhile, an internal task force has been set up to review student enrolment and develop a comprehensive marketing approach to student recruitment The task foree has met twice and is planning to submit to the Mi Couneil by Dee. 7. The Council consists of senior counselling centre; John Adams, department head of Environmental Sciences and Technologies; Mal Steck, department head of Physical Education and Athletics; John Aslin, registrar; Leni Normington, bookshop clerk; Harry Kidd, TRAC program instructor; Dennis a adult special and and Penny Freno-Link, information services officer. Work on plans for the college's “goth anniversary celebrations for 1986 are continuing. The anniversary committee is currently soliciting ideas for activities. Members of the committee currently imelude Jim Munroe.ga@former college board member and instructor: Pauline utling. an instructor of Languages and Literature; Craig Andrews of Odhtinuing Education, Mal Stecick of the Physica] Education and Athletics department; Jim Crom- well, campus director; and Penny Freno-Link, Information Services officer college Membership on the task force includes Don Parks of the to the aotimed on page AD at the college