)
4 _Casthégat News Joovery 7.196

Couple suing bank

VANCOUVER (CP) — A Clearwater couple is suing the
Bank of Montreal for $1.2 million, claiming the bank didn't
live up to its advertised claims of being expert in fi

its clients to provide good financial advice and participate-in
planning. gate
din to be pr d later in the trial

ranching operations.

Mike Hutchison, lawyer“for Ursula Bond, 50, and her
husband Don, 48, told B.C. Supreme Court Justice Reginald
Gibbs that the bank also neglected to take proper care in
handling the couple's financial matters, causing them serious
financial losses and spelling doom for the fanching operation.

The case attracted much publicity in 1985 when Mrs.
Bond camped out on the steps of the Bank of Montreal's
Kamloops branch to protest the handling of their loans.

In 1984, the court granted the Bank of Montreal a
foreclosure on the Bonds’ ranch and company Jyndabyne
Cattle Co., and judgments that now total more than
$600,000, much of it in interest.

However, the court orders will not become final until
the Bond's current counterclaim against the bank is
resolved.

Hutchison told the court Tuesday that the bank made
numerous errors in processing $430,000 in loans which the
Bonds used to buy cattle and finance operations on their
610-hectare ranch — including an island in the North

Thompson River — about 100 kilometres north of Kamloops ~

in the southern Interior.

Another critical problem was the time the bank took to
approve financing for the purchase of cattle. It took bank
officials seven months to release funds for the stock
purchase, months after the prime auction time for the feeder
stock the Bonds’ were seeking. As a result, Hutchison said,
the Bonds failed to generate enough cash flow to meet their
obligations.

ISSUE OUTLINED

But the major issue in Bonds’ case, said Hutchison, is
determining whether the bank had a “duty of care” in
financing the Bond's ranch. The court must decide whether a
bank simply hands out money or if-it has a responsibility to

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FURNITURE
WAREHOUSE

Tues.-Sat., 9:30-5:30
China Creek

“Drive a Little to Save a Lot”

are advertisements the bank ran in local newspapers Lous:
itself as “first for the man on the land” and “flexible” in
dealing with the tisks and problems ranchers faced.

Hutchison said the couple was-persuaded to move its
business from the Royal Bank to the Bank of Montreal,
which claimed expertise in financing ranching.

The bank said in court documents that the Bonds began
dealing with it in May 1980 by their own choice, not because
of any representations made by the bank or its officials. It

"It took bank officials seven
months to release funds for the
stock purchase, month's after the
prime auction time sic the

feeder stock .

also maintains that the Bonds did not rely on the bank for/

expertise because the couple already had “sufficie’
sophistication” about. agriculture.

The bank also maintained that any delays resulted fram
the couple's aetions ‘not the bank's.

BANK NEGLIGENT

Hutchison told Gibbs there was a “constant parade of
errors by the bank” and “a constant pattern of negligence.”

The lawyer said the bank at one point had listed the
applicable interest rate on a loan the Bonds sought in 1980 as
“prime plus 20% per cent.”

On another occasion, it double-charged interest, even
though the cash flow sheet used for the caleulation was the
bank's own. Using the new erroneous figure, he said, the
bank rejected the loan, claiming that the couple did not have
sufficient funds to finance the debt.

Under examination by Hutchison, Bond said the land
appraisers appointed by the bank neglected to include a
major parcel of land — the island — in the assessment of the
Bonds’ creditworthiness, which also-threatened to collapse
the deal. The 258-hectare island was later apeetiaed at about
$184,000.

Bond also said the couple had offered early in the deal to
use $100,000 in term deposits to pay off part of the loans but
were told by a bank official in Kamloops not to “rock the

"Bond also testified that the bank did not actively seek
out government assistance in the form of federal farm
improvement loans or small business development financing,
at a time when the going rate was lower than conventional
i offered through the ‘bank.

ECONOMIC CO-OPERATION

Premier meets Gardner

OLYMPIA, WASH. (AP) —
was a major topic Tuesday when British Columbia
Premier Bill Vander Zalm met with Washington
Governor Booth Gardner. ———--------~

“We often feel closer to the people to the south of us
than to those to the east,” Vahder Zalm said after nearly
an hour with Gardner in his office. “We need to
strengthen our ties to work for a stronger economy along.
the entire West Coast.”

The talks, which included the leaders’ wives, covered
the recent agreement between Canada and the United
States, under which Canada will tax its lumber exports to
the U.S. to offset what the Americans claim are low
royalties for harvesting public timber.

“That's all done, so we don't have to worry about it
any more,” Vander Zalm said. “It's something we'll have
to live with until we can in the subject again.”

Gardner said the discussions “built more good faith
and understanding.”

“We can build on that to solve issues quickly when
they come up,” Gardner said.

HELP PRAISED

He praised the attitude of regional British Columbia

agencies in helping solve wat: of

BILL VANDER ZALM . .

Point. Robert peninsula jutting south from the B.C.
mainland that is part of Washington's Whatcom County.
It is accessible by land only from B.C. and has persistent
local water problems.

work together like the children of a family,” Vander Zalm
said.

the Pacific Northwest because of the Expo 86 world’s fair.

a 9

The issue of competition between the Pacific

ed to strengthen ties for

“We are children of a common mother and we need to

Specifically, he said, both regions should work
together to attract more tourists, already made aware of

Northwest and British Columbia for sale‘of surplus
electrical power to California is also dormant, the leaders
said. The relatively low price of oil is leading California
utilities to burn it to produce power, reducing the need
for electricity from either source, said Gardner.

Vander Zalm is scheduled to meet with California
Governor George Deukmejian today in Sacramento. He
returns to Victoria Jan. 13.

Ban on dumping delayed

TORONTO (CP) — Kim-
berly-Clark of Canada will
get more time before it has to
stop

The delay was approved
after an independent auditor
concluded the company can’t
afford ion controls it

wastes into Lake Superior
from its pulp and paper mill
at Terrace Bay, Ont., a
provincial Environment Min-
istry official said Tuesday.

Columbia Brewing
Company would like
to give you the straight
goods on the clear, cold,
mountain-fresh taste of
new Kootenay True Ale.

What do we mean by
Kootenay True Ale?

True ale refers to the
brewing proces:

A true ale is top-
brewed. In other words,
after fermentation takes
place, the yeast is drawn
off the top rather than
settling to the bottom of
the brewing vessel.

Is that what gives Kootenay True Ale its
distinctive flavour?
Part of it is the top-brewing
process, and the type of yeast used.
Another part is the hops: more
hops are used in the brewing of

p

the whole true,

nothing but -
e true.

Kootenay True Ale, and
it’s this blend of choice
aromatic B.C. hops that
gives Kootenay its
unusually clear, cold taste.

Aren’t all ales dark
and heavy?

Not true.

The fact is that ales
can be golden amber in

colour.

The same holds true
for taste. Although
traditionally, imported ales
are viewed as being heavy
and bitter, Kootenay True
Ale has been brewed for

a distinctive lighter taste.

The type.of hops and barley used in
the brewing process as well as the water
account for its refreshing, clean taste.

And there you have it: the truth

behind the great taste of Kootenay

True Ale.” >

Kootenay True Ale.
Clear, cold
mountain taste.

had been ordered to install
by Jan. 31, said Wally Vroo-
man, director of the min-
istry's Thunder Bay regional
office.

Kimberly-Clark will take
temporary steps to reduce
some pollution while it tries
to make the plant profitable.

If the mill is still operating
when the new three-year
agreement ends, it will be
required to meet tougher
pollution-control regulations,
Vrooman said.

The decision was viewed as
a test for Environment Min-
ister Jim Bradley, who faced
a threat the company might
shut the mill — wiping out
1,600 jobs in economically
depressed northwestern On-
tario — if it were forced to
spend more than $20 million
to stop the flow of a black
liquid effluent that contains
at least 40 lethal chemicals.

NEW IN TOWN?

LET US PUT
OUT THE MAT
FOR YOU!

me Mest Tamas Mase he we"

Joyce 365-3091
Deborah 365-3015

‘The loss of its only indus-
try would likely kill Terrace
Bay and could deal a death
blow to the minority Liberal
government's hopes of add-
ing to the two Liberal seats
out of the 15 in Northern
Ontario.

OPPOSE DEAL

Environmentalist groups
opposing any compromise
have claimed that while the
Terrace Bay operation —
which produces the raw mat-
erials for Kleenex tissues,
Huggies disposable diapers
and other specialty papers —
is losing money, Kimberly-
Clark as a whole is doing well
and can afford’ a clean-up.

Bradley’s office would not
comment. Details are to be
released in Terrace Bay on
Jan. 14, a spokesman said.

Jack Lavallet, mill pres:
dient and general manager,
said the agreement is a good
business decision by both
sides.

The company has lost $78
million at Terrace Bay dur.

‘ing the past six years, in-

cluding $20 million in 1986, he
said. After it argued it could
not afford to obey the current
pollution-control order,
which expired last October,
the ministry agreed to a
90-day extension while the
auditor studied the mill's
books.

The mill has taken several
cost-cutting steps since last
summer, including the lay-off
of 355 union, salaried and
management employees, and
its U.S. parent has given it
until the end of this year to
show it can be profitable. If
not, the operation will be
closed, Lavallet said.

The Aew deal requires the
company to neutralize the
acid in its effluent, improve
procedures to cut the amount
of waste and improve con-
ditions where the smelly
stream flowing toward Lake
Superior crosses under the
Trans-Canada Highway.

Lavallet said this will cost
under $10 million.

Ontario wants

special

TORONTO (CP) — Ontario
wants the federal govern
ment to provide special un
employment grants to thou
sands of Canadians facing la
yoffs as a result of last week's
agreement to tax Canadian
softwood lumber exports to
the United States.

Although Ottawa has
promised to give the $600
million a year to be collected
from the 15-per-cent border
tax to the provinces, Ontario
is proposing the federal gov
ernment distribute the
money directly to laid-off
lumber workers through the
Unemployment Insurance
Commission, officials invol
ved in drafting the proposal
said Tuesday.

The proposal, to be pre
sented at next week’s meet
ing of federal and provincial
trade and forestry officials in

grants

Ottawa, hasn't been discuss:
ed with the other provinces,
said the Ontario officials, who
requested anonymity. How
ever, since most provinces
want lumber tax revenues to
flow back to their treasuries,
the idea is expected to re-
ceive only lukewarm res.
ponse.

Ontario. Premier David
Peterson, the only provincial
leader to oppose negotiating
a lumber deal, warns that the
agreement prevents the pro-
vinces from offering any ex
port tax money to affected
producers or workers who
lose their jobs because of the
levy.

The tax boosts the price of
Canadian softwood sold in
the United States and makes
it more diffieult for mar.
ginally profitable mills to

continue operating
*

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—WEST KOOTENAY ENTERPRISE DEVELOPMENT CENTRE _|

1410 Columbia Avenue, Castlegar, B.C. VIN 1H8
365-5886

d in a classroom atmosphere
two week immersion course in

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merchandising

production

The purpose of the course is to make prospective business owners fully

aware of all aspects of running a small business. Participants must have
energy and drive. Applicants will be interviewed due to

Location: Castlegar, B.C

ANNOUNCES
NEW RATES

OTTAWA (CP) — Canada
Post published the fine print

| of its unpopular new rate

Tuesday, clearing
the way for a two-cent jump
in first-class stamp prices
and ‘average nine-per-cent
inereases in commercial rates
April 1.

‘The packa

tions, now 4.5 cents to 6.8

em fost dl aps Re

6.1 ‘cents to 7,7 cents. Ef-
fective July 1, the changes
are described as “a gradual

ge, designed to
raise $127 million a year in
new revenue, is expected to
be approved with little or no
change by the Tory cabinet.
The jump in first-class
rates was announced by the
Tory government Nov. 5 as
part of a controversial new
business plan designed to
wipe out post office deficits
by March 31, 1988.

And the. nine-per-cent will be

guideline for commercial rate
increases was made public by
Canada Post president Don-
ald Lander during parliamen-
tary hearings‘ in December.

But full details were with-
held until Tuesday when the
post office finally published
them in a special edition of
the official Canada Gazette.

Like the last round of rate

” inefeases in mid-1985,, the

changes affect virtually all
postal fees and services.

Among the highlights:

e The new rate for first-
class letters will be 36 cents,
comparable in Canadian
funds to domestic rates of 31
cents in the United States
and Australia, 35 cents in the
United Kingdom, 42 cents in
France and 48 cents in West
Germany.

e First-class commercial
rates, which vary from 22
cents to 30.5 cents depending
on volume, will rise to a
range of 24.5 cents to’ 33.5
cents.

e The rate for letters
mailed to the United States
and for business letters of
non-standard size will rise to
42 cents from 39.

The overseas letter rate
will increase to 73 cents from
68 cents.

e@ Minimum second-class
rates for Canadian publica-

of where they are published.

@ The rate for unaddressed
advertising mail will rise to a
range of 6.8 cents to 8.8 cents
per piece from the current
range of 6.4 cents to 8.2

to’ 19 cents a piece from 15
cents rhe! July 1. Discounts

allowed for pre-sort-
ing.

@ Parcel and Priority Post
Courier rates will increase by
up-to 10 per cent depending
on destination.

@ There will be no change
in lock box rates, change of
address fees or the annual
five-per-cent discount allow-
ed for specially-coded Christ-
mas cards.

The registered mail rate
will rise to $2.63 from $2.46
and the fee for certified mail
will increase to $1.50 from
$1.12.

@ The special delivery rate,
charged over and above nor-
mal postage, will remain un-
changed at $1.96 for letters
but will increase for pack:

Empress
—.
$189

verre s

kg
3 Ib; Package .....

Paper Towels

=... 98%

Case of 12 —. $11.76

Kleenex Facial
Tissue.

88°

Assorted.
Box of 200 ..

a

Empress Peanut

Butter
$ qis

Cream
Super Chunky.
1.5 kg. tin ........

Camphell’s Tomato

Soup

ae.2/ 89%

Canola
Oil
a $3 29

Sunlight
Detergent
mom $39

500 ml Containers..

to $1.34 from the current rate
of $1.25.

@.The fee for a domestic
money order will rise to 80

cents from 75 cents. Money .

orders to the United States
will increase to $1.10 from $1,
those to other countries will
rise to $1.50 from $1.40.

Postal rate increases can
go into effect as little as 60
days after they are an-
nounced — the minimum
period required by law.

The April 1 target date for
implementing this round of
increases coincides with the
start of the government's
new fiscal year.

No offers on

closed

KAMLOOPS (CP) — The
former Tranquille centre for
the mentally

centre

land, was the only bidder. for
the agricultural Property.

that was closed by the prov-
incial government is not at-
tracting much attention on
the real estate market.

The search for proposals
by the province's Forests and
Lands Ministry has drawn no
offers for the centre’s main
facilities despite a five-month
marketing effort.

Jim Yardly, spokesman for
the lands branch, also says
initial positive feelers from
offshore interests have failed
to materialize into offers on
the property.

Ministry officials conduct:
ed tours of the site, bringing
potential buyers in from the
Vancouver area.

“We didn't get as much as
we had hoped for,” said
Yardley. “There wasn't a
proposal dealing with the
major group of buildings.

“My suspicion is that the
project was potentially so
large it would have appealed
to only a small sector of the
market.”

The Frolek Cattle Com-
pany, which leases most. of
Tranquille’s range and farm

The Th Re-
gional District and the B.C.
Wildlife Federation each
presented proposals for re-
creation use of land along the
shore of Tranquille Lake and
an adjacent field.

A fourth proposal was pre-
sented by the Pine Park Rec-
reational Society for the
property along Tranquille
Creek north of the main
centre.

The initial interest in the
buildings came from groups
that were considering the
site for a resort, a manu-
facturing centre and for a
media arts centre offering
filming and recording facil-

TYPE
SETTING

Give your newsletters,
meeting bulletins, etc.,
professional appearance
Comere-ready type for your
photocopier.

CASTLEGAR NEWS

365-7266

Coming Soon. . . See the
Castlegar News of Sun., Jan. 18

Open Sunday
10 a.m.-5 p.m.

Advertised specials this week in effect
until 5 p.m. Sunday

Tide

Detergent

Regular or

Unscented or
Oxydol Regular.
4.8 kg. Box ..

sgee

Generic

Apple Juice

1 Litre
Container ..

Frozen

Scotch Buy -

Orange Juice

Concentrate. 341 mi Tin.....

Fresh
Safeway Meats

Fresh Chicken

Breasts

$958
‘le Ss

| 89
SA eng. tb

Boneless Beef Chuck

Roast

$979

Frozen @ Whole Pink

Salmon
199

Bone-In.

Grade A
$633 ig scavevere Ub

OD od
Angel Food Cake

7-Inch Size.
Iced.
Assorted .

Peasant Bread

2. > 279
Bran Muffins
sb. 319
Crusty Rolls

149

or Harvest
Bran Bread.
450 g. Loaf .

12... $
Glazed eno

Fresh. ..

Fresh

Prices effective through Saturday, January 10 in
your friendly, courteous Castlegar Safeway Store.

Mon. to Wed. and Saturday

Thursday and Friday
9 a.m. to 6 p.m.

9a.m. to 9 p.m.

We reserve the right to limit sales to retail quantities. Prices ettective while stock lasts

Fresh Safeway
Produce
Chinese Mandarin

Oranges
9 lb. Case. $ 5 9 9

Or $1.74/kg — 79¢ LB.
Washington Grown Gem

Potatoes

No. 1 Grade
50 Ib. Carton

Fresh B. C Grown
Carrots

Diapers

Toddlers 33s. 1 8

Daytime 48s.
Newborn 66s,
or Extra

Large 30s. ..

Sundoy i
10 a.m. to § pam.

CANADA SAFEWAY LIMITED