ON _ AUGUST 30

BENNETT MUST GO
STOP THE GIVEAWAYS

a

OUST SOCRED GOV'T

Tidal wave swamps Socreds

SEE ANALYSIS BELOW

PLOT TO SCUTTLE
JOBLESS INSURANCE

LABOR HAILS RETURN
OF FISHERMEN 10 CLO

Nixon's Christmas gift to world:

More bombs, destruction in Vietnam

These headlines from the Pacific Tribu ne tell some of the story of the
momentous events that shaped 1972.

Vietnam protest urged

Cont'd from pg. 1

letter to the new city council
inviting the Mayor and Council

LABOR UNITY

Cont'd from pg. 11

is needed is a rounded-out
approach. The fight for auto-
nomy must be seen as part of the
fight to regain-control of our
economy, to create full employ-

mentandtoelect governments.

dedicated to such policies.

To effectively pursue broad
social policies, we must at the
same time press harder for com-
plete autonomy, for one unionin
each industry and for one united
Labor Congress. embracing
every bona fide trade union.
Such a course will inevitably
result in complete independ-
ence for the Canadian trade
union movement, in the long
pull.

True, whether we like it or not
there will be breakaways from
time to time— and sometimes
the workers will see this as the
only way to rectify their griev-
ances, Butit would be wrong to
project breakaways as the
absolute answer tothe problems
of the trade union movement.
This would downgrade the
crying need for a united labor
movement basing itself on
forward-looking, anti-monopoly
policies.

~ SURREY
DELL HOTEL

8 P.M.

TUE. JAN. 16

PACIFIC TRIBUNE—FRIDAY, JANUARY 5, 1973—PAGE 12

to add their voice to the protests
against the bombing by joining
in the walk to the post office and
asks the Mayor and aldermen to
“lead this public appeal.’’ For
further information about the
campaign write Mrs. Irene
Foulks, No. 802, 4691 W. 10th
Ave. Phone 228-9557.

The NDP governmentinB.C.
showed the waylastFridayina
wire to Prime Minister
Trudeau.
Premier Hileen Dailly, the wire
called onthe Prime Minister ‘‘to
protest to President Nixon the
continuing mass bonbings of
North Vietnam’s major cities.”’

It asked that he convey to
President Nixon ‘‘the revulsion
of civilized people around the
world at the spectacle of the
world’s strongest military power
systematically destroying the
economy of one of the world’s
poorer nations and
perpetuating the needless
slaughter of men, women and
children.”

In Victoria this week a group
of prominent citizens launched
a marathon telegram to Prime
Minister Trudeau demanding he
put pressure onthe U.S. tohalt
the bombing. Initial signers of
the telegram were former
Hydro vice president Hugh
Keenleyside and the mayor of
Victoria.

Signed by Deputy

By SEAN GRIFFIN

When B.C. Telephone asked
for the creation of a special
airspace agreementinthenew
Block 42 development, it was
not surprising thattheoldNPA
council, inits dying moments,

_shouldram the proposal through

Council — to the detriment of
the city of Vancouver.

It was not surprising at all
when you consider that at least
two of the directors of B.C.
Telephone— G.H.D. Hobbsand
A.M. McGavin — have been
major fund-raisers for the NPA
and have, along with their many
friends among the corporate
elite, used the NPA as their
means of obtaining whatever
concessions they desired from
City Council.

That is only one of several
reasons that people have been
demanding that B.C. Tel be
taken over and operated as a
Crown corporation under public
control. And when one trade
union delegate to the NDP
convention in November called
for immediate action on the
NDP’s stated policy of taking
over B.C. Tel, it was asifit were
the conscience of the NDP speak-
ing: the NDP was elected ona
policy of takeover of B.C. Tel
and the delegate was calling for
commitment to that policy.

In early 1971, when B.C. Tel
applied to the Canadian Trans-
port Commission for permis-
sion to increase rates, the reason
given was ‘‘increased costs” and
a desire ‘‘to provide expanded
and improved service’. Butas
the Communist Party, theB.C.
Federation of Labor and other
groups pointed out in their sub-
missions to the CTC, the
increased rates were requested
for another reason: to providea
greater return on capital to
shareholders and to fill the
coffers of the giant conglom-
erate, General Telephone and
Electronics in New York.

PROFIT
ARRANGEMENTS

B.C. Telis one of the tentacles
of ahuge corporate octopus with
General Telephone and Elec-
tronics as the head. Gen-Tel
owns 82% of Anglo-Canadian
Telephone which in turn owns
50.69% of B.C. Tel, apercentage
control that has been steadily
rising in recent years. In be-
tween are such companies as
Automatic Electric, Dominion
Directories, Lenkurt Electric
and Canadian Telephone and
Supplies, 100% controlled by
either Gen-Tel or Anglo Cana
dian.

Theoretically the Transport
Commission sets guidelines
(which are conveniently raised
to match increased profit) to
determine B.C. Tel’s allowable
rate of return on investment.

PROTEST

TO STOP THE KILLING IN VIETNAM
Speakers: BRUCE MAGNUSON

LABOR SECRETARY, COMMUNIST PARTY

MAURICE RUSH

EDITOR, PACIFIC TRIBUNE

(AUSPICES COMMUNIST PARTY OF CANADA)

Takeover of B.C. Tel-
a legislative priority

But this only hides the real
picture.

Unlike pthieniPonivanics that
have no regulation to worry
about, B.C. Tel spends lavishly.
In 1971, capital expenditures
amounted to $113.1 million, up
$18 million from the previous
years.

But all this expenditure
doesn’t go towards improved
service that might ultimately
lead to price cuts for telephone
users. It is for the purpose of
keeping B.C. Tel’s profit within
certain levels while providing
much greater profits for the
other companies in the cor-
porate family.

Because of the corporate struc-
ture of the Gen-Tel empire,
virtually all of B.C. Tel’s orders
for new equipmentor service go
to one or another of Gen-Tel’s
subsidiaries. No bids are invited
from other companies not in the
Gen-Tel line. Hundreds of
millions of dollars of business
go to various sister companies
at whatever price is necessary
to regulate B.C. Tel’s profits.

Gen-Tel president Leslie H.
Warner, in fact, exhorts
subsidiary companies to seek
increased rates knowing that
increased rates mean increased
business— and profits—forthe
companies in his empire. As
long as B.C. Tel remains a
private company that policy will

continue.

In the end, while B.C. Tel’s pro-
fits and rate of return on invest-
ment remains more or less
within the regulated maximum,
the profits of Anglo-Canadian
and Gen-Tel and their rate of
return on investment is un-
regulated— and exorbitant. _

Moreover, B.C. Tel, in 1971,
chalked up a $20,415,000 profit
and exceeded the guideline on
return on investment —
supposedly set at 7% in 1970—
with a return of 7.5%, up from
7.02% in 1970. But consumers
didn’t benefit and the telephone
rates— among the highest inthe
country — were not decreased.

BASIC ISSUES

Some very basic issues are at
stake in the policy of aB.C. Tel
takeover and are the under-
lying reason why the question
figured so significantly during
the recent provincial election.

Because of the relationship of
B.C. Tel to parent companies,

Pal

: y= j
B.C. Telephone is part of a giant financial —
empire which is controlled by General

Telephone and Electronics Corporation in
New York.

_ August 30. And the NDP, pol

SWEDISH HALL |

increases in profits can D
effectively hidden in busine!
dealings with AutomaticE
tric, Dominion Directories ane
the others. There is no end tote
rate increases that B.C. Tel
request. The consumer wi
milked without relief.
Even the regulation that i
Canadian Transport Come
mission is supposed to impose!
asham. For whenC.W. Brazie
QC, counsel for the provin
B.C. during the latest hearing
on rate increases, requested tht
details of transactions betwee
B.C. Tel and other companies)
the Gen-Tel chain be divul
he was refused by the C C
Those-figures would have bee
revealing indeed. ;
Even more important is th
fact that B.C. Tel, as a vit
public utility, is governed not
response to the needs of tht
people it serves but accordingt
the design of General Telephon
and Electronics Corporation,
the interests of maxi
profit.
Money flows out of the countt tr
through the various companié
in the empire and ultimately find
its way to Gen-Tel. Even thi
measure of improvement of
service is distorted by artifie
price levels which are ma
tained by means of an “
family” purchasing policy.
Manitoba, by comparisom,

which significantly is sovea
ment-owned and has the low
telephone rates, purchas
equipment at the lowest p
based on a number of bids sub
mitted. Manitoba Telephone
no problems of compatibili
buying from several man
turers.

Takeover of B.C. Tel is
only means by which control
be wrested from a major U
corporation and returned to
public; the only means by wh
it can become a genuine pu
utility responsive to the needso
the people of British Columbi

Those were the concerns of
voters when they gaveanov
whelming mandate to the N

convention expressed the sa
concern when it mo
however tentatively, tolau
proceedings by calling for ac
mission to be set up toassess
fair market value of B.C.
Now the action - must
completed.

VANCOUVER