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VANCOUVER CP’.-' The.
Sun says Transport Minister

Otto Lang, ina letter written. :
‘earlier ‘this: year to the)

United States Securities and
Exchange Commission,:
attempted. to prevent the
disclosure of salaries paid to
executives of
Canadian National
Railways, a Crown: cor-.
poration. -

The evening newsp paper
says that at the request of
CN officials Lang asked the
close .the
salaries because it was

“contrary toa longstanding

Canadian - government

policy.”

CN spokesman Bernard
Legare sald in a telephone
intetview from. Montreal
Wednesday that the com-

pany resisted the salary

disclosure because
Canadian Pacific Ltd. was
not required to reveal its
executive salaries.

‘We wanted to have the
same treatment that CP
got,” said Legare.

The SEC sought the CN
salary disclosure after the
Crown agency decided to go

to the U.S. money. markets

to borrow $100 million.
Under U.S. securities law
any company to
raise money must. file a
document. with the SEC
which -requires the
disclosure of executive
salaries,

The document and La
letter were filed earlier i

ear.
Sources told The Sun that
CN officials weren't. too
concerned about
salaries being disclosed but

were embarrassed that the.

salaries were low in com-

their .

U. Ss. LOAN TO CNR

parison ‘with those paid
other Canadian and
American executives...

One unnamed source said
“some CN officials didn't
want the Amuricans to think
to was a bush league

the president wasn't paid
very much.”

But Lang’s intervention
proved fruitless and in June
CN was forced to disclose
that “in 1976 . company
president Robert Bandeen
made §80,000, chairman
Pierre Taschereau was paid
$65,000 and vice-presidents
R.R. Latimer, Douglas

r

ld

Serving Terrace, Kitimat, the Hazeltons, Stewart and the Nass -

*

August 2 26, 1977

_ Price :

20 cents

VOL. 71, NUMBER 81}

VANCOUVER -+British
Columbia Railway an-
nounced the terms of set-
tlement with two con-
struction companies
resulting from the Crown
railway terminating con-
tracts'on the Dease Lake

Extension in northern ‘BC. -

Jack Fraine, — B.C.
Railboard chairman, sald a
settlement. was reached
with Chinook Construction
and Engineering Ltd.on

~ July 29 and the settlement

with Miller Cartage and
Pore Ltd. was made
Aug
Fraine said ina a news
release that the railway has

‘made a cash settlement of

$1,657,215 to Chinook and is
providing a frieght credit to

the company of up to $94,000 .
for.the movement of its own |
“ equipment a the sed Iwi

"alee Carley ie ‘rie on
‘and ‘to provide the same.
- frleght credit as extended to

Chinook.

“ Fraine .said the railway ”

had retained the. firm of

Swan Wooster Engi neering |

Co.’ Ltd: ‘to provide ‘an’ in-
dependent aasensment Of the

$3.8 MILLION FROM BCR.
-Dease contractors get cash

- additional costs to each

contractor as a. result of
termination of the con-
tracts. -

asset consultants, _ ‘in

the two contracts, .
‘reeoghized that, while they :

were ‘not - ‘identical,
was a similarity ‘in the
additional costs involved in
withdrawal from the con-
tracts,” said Fraine.

_ Both contracts were for —
work originally undertaken ‘ -

by M.E.L. Paving of Red
Deer, Alberta, which ob-
tained a $2.5 million set-
tlement’ out of court last
‘December, afterit sued for
fraud and
tation over the amount of

work Fe on ‘ita ‘con-
tract.
Premier - _ Bil Beniett -

ordered; ‘a. halt, to con-
x -situetion of the extension in

Following’ the decision fo we,
the board of directors. to “|:
suspend “work onthe ex-
tension, Mac Norris, vice- -

president of the railway,
began negotiations . with
each of the contractors

privately to reach fixancial

NO WA STRIKE YE T

VANCOUVER ‘CP - The
International Woodworkers

_of American and the Coast

Forest Industry -moved a
step closer toward set-
flement of a new master
agreement - Thursday ‘with
union agreeing to accept the

companies’ . proposal . of a.

two-year pact. S *
Keith Bennett, - chief

negotiator for the indusry ~

daid the major stumbling.
block remained money-the

union's demand for a $1 an: “said if. the offer was not

hour increase and ‘cost-of-
‘living protection.

Jack munro,. ‘west
regional president of the
IWA told :industry.
representatives’ Thursday.
that the $1 and hour offer
over two years. remained
unacceptable. ».

Munro who warned’ ‘last:
week that the woodwokers
will strike if. there is no

reraverecereavats! eSotaleteSet msSeSeasaeeeeDeeeacaelebee Telit DKK KRM RR? sist

Settlement near

settlement this week, ‘said
be was still hooeful that “an

. agreement can be feached.
‘He: said the industry’s —
latest offer, up from the —
_ -twé’year boost of 70 percent
cents. and hour it had

previously proposed, is as

‘high ass the offer t B.C.

puple and” paper -worker-

eB the money is not:
- acceptable."

IWA Vancouver local
president Syd Thompson

enough} for the pulp

. workers, “It's not good
enough for us
“Its got to be beyond the

“pulp — offer.”
However Thompson ‘said: :

he has been of the Opinion.

from. the start that "we'll

get a settlement without an:
all-out war, and I'm still of
that opinion. :

Le

CORES SSSSSESS % =

RRO

misrepresen- —

settlements.. too

In order not to jeopardize
_ the position of any of the-
_ Parties it was agreed that

any public statements would
be made only after

the» Bam
satisfactory conclusion of :

all negotiations.

vehicles were damaged.

'» Signs war

or smaller, on the road. -

~ HIGHWAY GRAVEL
BREAKS WINDOW .

Herald staff writer

Motorists whose windshields have been damaged by
loose gravel from department of hi:
on Highway.-16 East of Terrace cate
‘circumstances in a letter to the ministry of

The first report of damaged vehicles reac
Herald earlier this week when one irate driver stor-
med into our office to say hundreds" of cars had been
‘damaged by flying rocks left by seal-coating —
. operations on about 40 miles of highway east of here.

The department’s insurance claims office in Vic-
- toria assured us that all letters will get a response, but
highways isn’t assuming blanket liability. Motorists
should briefly explain in.

|. “We may or may not: ay ty ” sald. a. highways in :
te gurance, c spokesman, ale ut
“gomeb ody going, athe other vay at too.
ng motorists approaching the neal costing

-on bert such operations, he sald, but drivers who ignore .
the speed zone often damag

Special highways crews which do nothing but seal
coating travel over B.C. highways all year. The same
crew may generate 50 complaints in one area and none
‘in another, says the department.

Whayne Chappell, -highways. regtonal _ office
_. manager here, said seal-coating adds up to five years -
to the life of the original pavement and improves road
“traction especially in rain. ij

, Seal-coatcrews pour a layer of liquid as halt’ to the
| Bibeay then spread loose gravel, half an. chi in size

The gravel is pressed into the liquid to form: a new
surface on the original pavement that gives vehiclesa |
‘smooth ride though the texture isr rougher. .

a operations
explain the
ways.

thelr letters | how their

ip

e "oncoming cars.’ .

Tougher. poaching: laws

- OTTAWA CP - Increased

penalties for fish poachers .

and polluters of waterways
will become
Fisheries Minister . Romeo
LeBlanc - announced
Thursday.

The law incorporates the

_ concept of fishhabitat which: -

it describes as the breeding,
growing and  feéding
grounds of fish.- Under’ the
cha ministerial:

missfon. "will be need to.
alter -any fish habitat .
through construction, in-

dustrial activity or ‘waste

discharge.

The penalty for harmfully
disrupting fish habitat-is.a

$5,000 fine on first offence ©
. and $10,000 or two years in.

atateseeteseteeek SI IO Se sca caseleiecisecatebetenncararatete

law Sept.: 4,.

‘ jail on subsequent offences.

The deposit of harmful
substances into’ water-
which there was a $5,000
maximum. fine will ha
$50,000. maximum on first

offence and $100,000 on-

subsequent convictions.
for fines between $5,000 and

$50,000 for not ‘reporting ..

spills and not complyin
with clean-up orders, P va |
penalties do not. exist now,

The minister will be able
to order the confiscation of
equipment from anyone
convicted of poaching.
Fishermen convicted of

can have their :

ficences revok ked.

Piggot and John Spicer each government | “Policy and filed by the SEC in the U.S,
received $73,000. ractise to disclose in- Court of Appeals relating to

Lang in his letter to Carl. formation regarding Crown a suit between the SEC and
Bodolus, SEC chief of in- corporationstothedegreeof Canadian Pacific. Notice of
ternational corporate details now sought,” Lang the Lang letter came to light
finance, said CN is a cor- wrote in a decument filed by the
poration accountable to “Obviously disclosure in SEC with the court.
Parliament. the U.S. would destroy Canadian F Pacific is suing

‘While I have no problem confidentiality in Canada,” the SEC. to. prevent the

‘with such salary disclosure

in respect: of that whole
executive group, as a group,
or seven respect of some
smaller group that would
nevertheless be wide enough
to preserve individual

anonymity, it is contr
a long standing Cana sadian

one of many ‘youn ters having a.
ame this summer at the E.T. Kenney School adventure —

he added. "Your agcistance

in arranging for an exemp-

tion from or appropriate

relaxation of such
requirements in the case of

, CNR's filing would be
greating appreciated.”

The Lang letter is among
several documents to he

regulatory agenc from
releasing the salaries paid
the company’s top officers.

For the past three years, the ©

SEC has granted CP con-
fidentiality on executive
salaries,

But that ruling was
overturned in June of this

recreation.

j othe :
_playground on.Leen. The eased isa good place for

year ‘after The ‘Sun’
requested that the con-
fidentiality provisions be
waived u
of Information Act...

CP now has until late
September to file a brief in
the Court of Appeal a rguing
why the SEC should nat

ahead and release -
salaries of CP’
executives.

One of CP's arguments
always has been that since:
CN has not revealed the

’ salaries of its top executives.

it should not be required to

"do 80.

parents. to bring their children for some after-supper ;

7 7 a

tet ed ped by, ac oe "

- More

‘to a

today ‘to’ the annual con-
vention .of -the Canadian

Chiefs of Police.
Meanwhile, the law
‘amendment committee

submitted a report Wed-
nesday which concludes

_. With seven : resolutions * it

‘ wants presented to the

federal government.
They include requests for:
- An amendment to the

Criminal Code setting a

it eet

- Le islation to allow
medical persons to take’

blood samples without a ~

person’s consent in cases
where police suspect alcohol
is involved in a crime; .

- Restoration of the

~vagrancy law, repealed b: by
ic

Parliament in 1972, wh

required persons to “give a

good account of them- —
selves’’ if stopped by police; «

minimum sentence for

persons convicted of crimes
associated or related to

foansharking;

- A ban on all semi- ©

automatic weapons’

_ censorship

ve a

The changes also provide

‘miles from Kitimat.
”- “The blackout: occured
Prince Rupert.

According to. Dave

from the Kemano plant

ere PaPaMehareriatererer

Transformer puts
us in dark

A power failure between 6 a.m. and 7:30 am. |
. Thursday has been attributed to a faulty transformer
’ bank at the Kemanopewer generating plant, about 60

in Terrace, Kitimat and

Kemano workers were still irying to pinpoint the
| ~ source of. the problem Thursday afternoon.
Dunsmuir, an Alcan public
relations officer, three of the four banks were
‘operating at the time of the blackout. The fourth bank
was out of service for repairs.
B.C. Hydro buys its power for the northwest area

- the traffick

Perera estat atalatee arecerest serene ieatet aaataneeine

eeeatatelatraeeeneniatate

NOBLE OBJECTIVE--BENNE} rT

VANCOUVER CP - Charges of sp okesman for the |nternational federal government will be

< headline-hunting, unrealistic . Union of Operating Engineers, Local necessary to ensure Ottawa shares
thinking and premature action 963. ‘We have certification inthe the costs. i

agreeted Human Resources. schools, If they want to come in ~— In.addition, he ‘said, the program

vandalism,

"eens,

a

0,
‘*

fait

onRaneRER

—

Minister Bill Vander
proposal this week to.put thousands:

OF welfare recipients to work in

British Columbia schools to combat .

Schools and’ labor representatives
joined with education and anti-
poverty ‘spokesman to denounce
Vander Zalm’s proposal to hire
le ‘on welfare ‘to serve as-

8 inside schools to discourage

ve Ny Welfare recipients are not
going to work if the schools at our
expense,’”” said Doug Eastwood,

Zalm’s

_-Gary Pogrow, former official of the
Federated Anti-Porver

B.C.

’ vandalism
backing.
McGee

P aces eetats' ace tbtetewote

a

that’s OK. But they'll have to belong.

“Welfare recipients shouldn't. .
have to be cops in schools,”
Vander Zalm said the ‘anti-

papers
Operation Vandal

“But it a requ
approval of Education Minister Pat

ty Groups of

ram, called
, has his full
ires the

Se Mos

hiss ecolegetesatetateletetestetatelesetestatate

'

eet os anaes somos saeienaeinttabtlabrccmane cue ee

will have to be a proved b

any

to the union.” unions | whose jurisdiction is
-” “Vander . Zalm is asping at - volved..
straws: to make headlines,” said Gordon Wilson, Vancouver School

Board labor relations officer, said:
‘In circumstances where employees

by any employer for make-work
services, then those employees must
be paid at current union rates for
that particular job.”

He cited the guidellnes issued
Tuesday by‘ the Labor Relations
‘Board which: ruled that workers

r, who is vacationing in ~ hired through federal subsidy plans
Norway and negotiations with the such as the Loca! Initlatives

Program are eligible for collective
bargaining ‘under the provincial

‘The Vancouver School Board’s
custodian rate at the moment ia
between $1,096 and $14,029 a month,”
“Even school service
employes receive $1,000 a month.

of Van- °
couver and’ the municipalities earn
between $5.50 and $6 an hour.

“Vandalism is costing the schools
about $3 miliion a year Soif hive

Wilson sald.

laborers in the ci

Bennett

“

SO Se SERIA RS a

aratatetateSeteteseseats!

aeatedebatosicsconravatatesetetotonetener?

Zalm is thinking -of paying welfare
recipients at current union rates,

Human resources erltic Rosemary
Brown NDP - Vancouver Burrard
asked the premier if the proposal
would create legitimate jobs, and
not just provide cheap labor.
noted that Education
Minister Pat McGeer had often
spoken about the “tremendous loss
of personal property in argon in the
school of this Province.”

SCR eee

- An amendment to the

- Criminal Code requiring .

doctors to report gunshot
wounds; |

- A special committee to
work ith federal officials
in grafting eine

delines;
- A Criminal Code

amendment to change” to

firatdegree ‘from: .second-
‘degree murder that is

committed in the course of a
robbery or break-in.

The committee also urged.

the association to continue
pressing “the dangers of
decriminalization’’ of
marijuana laws.

Another report says
motorcyele gangs in Canada
are ‘orces to engage
in pear activity on ath
sides of the border.

The Teport by the
association’s organized
crime committee says the
Satan’s Choice motorcycle
gang in Central Canada has
formed a  ‘‘common
brotherhood” with the
Outlaws gang in the eastern

More than 75 percent of
ing in speed or,
methamphetamine in On-
tario is controlled by
motorcycle gangs,

oaeaggaberacseluanaisetenineessttanantseraeteaers

the |

ate rat ete ceatalaeatatatatalatate se

“Seven-point law reform” =
_wanted by police chiefs —

” VICTORIA cP
than 100. suggestions have m
. been forwarded.
- resolutions committee. that
- will make & final report

report Says.

The’ report also Says
motoreyele gangs are .in- -
volyed in loan #harking,

‘counterfeiting and theft and.

work as enfercers for
organized crime figures.
Although the gangs now
attempt to maintain a low
profile, rapes,. assaults,
murders and bombings still.
occur, the report says.
Dealing . with’ organized
crime in general, the

committee said ‘stronger

legislation is needed to
combat loansharking than
the federal govenrment’s
proposed borrowers and
depositors protection bill.
The committee also .

criticized amendments to -

the Criminal Code which
have allowed “the
proliferation of pin-ball,
machines . in Canada,” an
activity
organized crime.
‘Committee

Ontario ‘Provincial. Police,

told reporters organized

crime is belng contained in.
Canada: - 7
Graham said he does not.

- feel a national inquiry into’

organized crime is’

warranted,

SOT

he

“was ‘concerned about the
tremendous cost in lost facilities and

was it not ‘just another cheap labor = .
program” of the human resources =;

stry.

Bennett replied that there are no:
cheap labor «programs, only "
sincere effort to provide jo
por tunities," and suggested it wou
“quite political to assume“
advance all the worst for: auch |
worthy and oble objective."

setnfetesetsaes Boas wrt et SHEE

Vander Zalm’s s work ethic called 4 cheap labor .

SS aE

Patatalete'n se BIH.0.P a!

labor code. then his proposal is no bargain. ” educational opportunities. for our %
png Guidelines were issued by the Premier Bill Bennett said he is young people, and the tremendous &
. n a case involving six LIP §‘‘most anxious’ to hear details ofa _ loss to the province of B.C.” Ba
elo hired ‘by the Kelowna program: which would cut down on Brown said she wanted Ss
Centennial Museum that resulted in the amount of vandalism in British assurances the program would not 3
adispute with the Canadian Unionof | Columbla achools and provide jobs § mean that pensioners would have to ;
Public Employees CUPE. for welfare recipients. work for their pensions, and that

sLtpesitets Apatbeke : See thse Koy 4
a ease Senthil 1 To .

Lang urged U. S. not to reveal Canadian salaries —

ler the Freedom

top

links with ~

chairman:
HLH. Graham, chief of the —

RS AD