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PAGE Ad, THE HERALD, Wednesday, July 14, 1976

Ge

EDITOR
PAT O'DONAGHY

mail, Registration number 12
posiage guaranteed. .

the herald

635-6397

An Award Winning Weekly
Published by Sterling Publishers Ltd.

Published every Wednesday af 1212 Kalum St., Terrace, B.C,
Amember af Varitied circutation, Authorized as second class
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PUBLISHER

GORDON W. HAMILTON

NOTE OF COPYRIGHT

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editorial or photographic content published in the Hera.d. Repraduction is noi «
without Ihe written permission of the Publisher,

ADVERTISING
MANAGER
RALPH KERMAN

+

MEY

The Four-Way
Test

Of the things we
think, say or do.

is it the TRUTH?

Is it fair to all
concerned?

Will it build GOOD
WILL and BETTER

_ FRIENDSHIPS?

Will it be -
BENEFICIAL
to all concerned?

Bicycles and cars dont mix

A bicycle is a feeble
vehicle when it hobnobs with
cars in traffic. Bicycles
have poor stability and
accelerating capabilities,
they arealsosmail and hard
for the motorist to see, even
if cyclists obey all traffic
laws. Bicycles are also
silent, with the exception of
an occasionally tinkling
kell, which doesn't help
matters either, especially
when they approach from
the rear or from behind
blind spots such as cars,
trucks, buses, shrubbery
and billboards.

The cyclist is not onl
undersized and overlooked,
he is also underprotected
and overexposed. Unlike the
motorist, he is not
surrounded by a steel shell

- to shield him from other
'« steel shelis or, if his bike

whove

te es 2

ee ee ee
renter a

Lo a ee oe

onary

sizes, from the head-

ca
- splitting pavement. It

doesn’t take much speed or
impact to wipe out a cyclist
a slight bump or
sideswipe — the door of a
parked car if it is flung open
suddenly without looking
first to see if it is clear.

A bicycle is a vehicle,
therefore. all cycle riders

must learn and obey traffic
Jaws, rules and regulations
in order to share the roads
and streets without causing
accidents. Eighty percent of
ear-bike accidents are
caused by bicycle drivers
disregarding traffic rules.
Expect the unexpected.

HOW TO

PREVENT

CAR-BIKE

ACCIDENTS -
FOR MOTORISTS

- The right of way
(theirs): A person riding a
bicyele has the rights af a
driver of any other vehicle.
Obey all traffic laws and
give all cyclists their legal
right of way. The right of
way means the right of life.
- The right of way
(yours): Four out of five
bicycle-car accidents are
caused by cyclists
disregarding traffic rules.
Assume cyciists may violate
your right of way
especially young cyclists. If
they do, yield your right of
way as cheerfully as

possible.
-If youseea bicycle, think
car: Superimpose the

outline of a car around the
bike and give them that

space. You will be less likely
ta invade the cyclist's space
and get too close for com-
ort. .

-Ifyoudon’t see a bicycle,
think bicycle: Expect the
cyclist to appear any time,
from any direction. Smart
motorists make a habit of
checking their rearview
mirror and blind spots all
the time.

- Intersections: Most car-
bike accidents happen at
intersections because of the
cyclists low profile and
while making a turn. Be
extra cautious and give the
cyclist all the room he
needs, Watch out for cyclists
making left turns from right
lanes. When you make a
right turn, make sure you
don’t pinch a cyclist bet-
ween you and the curb.

- Driveways: They are
also considered _in-
tersections and they are also
hazardous, particularly
when you are driving out of
one and your view is ob-
structed by shrubbery or
parked cars. Move slowly
and check in both directions.

- Passing: Busy streets
with parked cars are often a

tight fit just for cars. To
avold tight fits, if a bicycle
enters the scene, slaw down,
and stop if necessary, until
the cyclist passes. If you
overtake a cyclist from the
rear, tap your horn as
warning but do not give such
a loud blast to scare the
rider out of control. Leave
plenty of leeway when you
do pass and never pass on a
curve.

- Night driving: The
cyclist may not be wearing
reflective clothing, and his
single taillight or headlight
(if he has one) makes it
harder to estimate his true
distance. Assume he is
closer than you think.

- Car doors: Even after
you have parked your car
your responsibility for the
eyclist’s safety hasn't
finished. Before opening the
car door, look first to see if
anything is coming.

Tf possible, try riding a
bicycle for a change. It
should help make you an
even safer motorist by
showing you how the other
half lives — how dangerous
it can be for a cyclist out
there on the other side of a
car’s bumper. .

Misinterpreting information

In their eagerness to
persuade Ottawa to tailor
the 1977 Bank Act to their
specifications, some senior
bank officials and , the
Canadian Bankers’
Association are misin-
terpreting information
contained in briefs to the

‘Minister of Finance from

other financial institutions.
As a result, the public and
the media are being misled.

The banks—the Goliath of
the financial sector with
assets of $106 billion~want
the government to take
David's slingshot away. In
other words,they want more
power in the competition
with trust companies,
finance companies, in-
vestment dealers, and
credit unions.

The David and Goliath
analogy becomes more
valid when it is realized that
in 1974 alone the growth in
assets in Canada of the
banks exceeded the growth
of all trust companies over a
100-year period. Banks’
growth that year was one
and a half times the growth
of all finance companies
over the previous 50 years.

To date the information
‘pattle has been waged in a
straightforward manner.
The “Davids” have argued
that the banks are toa big
and powerful for the good of
the country. The banks have
denied this and brought
forward evidence of their
own,

Fair enough! In recent
weeks however, statements
have been made and
reported in the media to the
effect that the Federated
Council Sales Finance
Companies wants to return
to ceilings on bank interest
rates for consumer loans.
This is not entirely ac-
curate.

The brief which was

submitted to the Minister of.

Finance on November 3,

1975, stated: “We do nat

subscribe to legislated rate
regulations in any cir-
cumstances short of a
national emergency. We
believe that market forces
with all their faults should
prevail.” .
All types of business

‘organizations have con-

straints placed upon them
by the markets in which
they operate. On the funding
side of their business, they
must conduct their financial
affairs ina prudent manner
or iace difficulties in
borrowing and = raising
capital. Management's
competence is constantly
being monitored by bankers
and other investors te
Measure and assess in-
vestment risks. .

The ratio of debt to equity
is one such measure ef risk.
When a company has a
great deal of debt in relation
to its equity it is said to be
“highly leveraged" and, in
investment terms, more
risky,

Another measure is the
amount of earnings
available to cover the in-
terest on the debt capital,
This is known as “times
interest earned’. It shows
that funds are being utilized
profitably, that the risk of
default on paying interest is
slight, and what is left for
shareholders after the debt
has been serviced,

These measures-
“leverage? and ‘“‘times
interest earned’’-are’
especially significant to

‘investors in financial in-

stitutions.

Prior to 1967--the year of
the last revision of the Bank
Act--the banks were

restricted to a maximum.

interest of 6 per cent on
loans. That had a double.
edged effect: Not only did
the law limit the rate banks
could charge, it also ef-
fectively restricted the
degree of risk they could
take. That constraint was
removed in 1967, Depositors,
which are debt investors in
banks, were deprived of that
safety feature and no other
constraint such as any other
business has, was imposed
in its stead.

We argued thatsome form |
of constraint should be
imposed because of the:

special position the banks
occupy in Canada’s system
of financial institutions. Not
only are banks the biggest
financial institution in
Canada and the trusted
repository for the funds of
most Canadians, they are

quasi-official —_ institutions
which work directly with the
Bank of Canada in im-
plementing Canada’s
monetary policy. ;
The brief suggested that
banks are using the ‘sense
of inviolability” they have
earned over their history to
outstrip the growth of other

institutions since the 17 future

revisions. Their drive for
growth could be dulling
their normal pridence as
they move into fields that
are not ‘“‘the business of
banking”. .

Our evidence?
-In 1961, Canadian banks
had $13 of debt for every
dollar of equity. By the end
of.1975 the figure was $23.57
of debt for every dollar of
equity. In the United States,
where there have been bank
failures recently, a leverage
factor for banks of 15:1 is
considered too high.
-Using the times interest
earned measure, we find: In
1961, the banks earned $1.65
for every dollar of interest
paid, which meant that after
paying interest charges they

d 65 cents over to pay
taxes, dividends, eic. By the
end of 1974 the arnount left
over was 17 cents. This rose
to 22 cents in 1975, Not much
of a cushion.

' -Bank leverage was almost

as high at another time in
the last 30 years, but their
earnings were much higher
then too. In 1953, bank debt
to equity was in a ratio af
22.5 to 1, but their times

interest earned that year ‘Pe

was 2.66, with a cushion of
$1.56 per dollar of interest

id,

A Globe and Mail article
and editorial in February:

inted out thal actual loan
osses and reserves for
possible losses of banks
were up from $82 million in
1973 to $269 million in 1975-
an increase of 228 per cent in

two years.
These are common
mensures that pinpoint the

trend in bank risk-taking
and it is because this tren
has been accelerating since

1967 that our brief urged a,

“re-examination of the
principles underlying the
rate-risk limitation
previously contained within

the Bank Act,”

The section concluded by
saying: “It is our view that
given their current levei of
earnings, elther leverage
limits (debt-to-equity ratio)
or rate-risk limits, or a
degree of both are needed
fer the protection of
depositors’ funds in the

dhe

This is not a categoric
demand for a return to a
ceiling on bank interest
rates as bankers and others _
are how saying.

When banking is looked at
from the depositor’s point of
view, constraints on
leverage and requirements
for satisfactory earnings
relalive to interest charges
will undoubtedly be imposed
on banks..

letters to the editor
The Golden Rule

- The Mayor & Council of

Terrace:

You are all familiar with
.the Golden Rule em-
ployment service. It
operated for 144 years with
no support except that
received from the citizens

and firms of Terrace. After-

-that for six months $150 a
month was received from
the province for expenses.
For the last 2% years the
coordinator has _ also
received renumeration. For
over a year she has been
told that she is self-

- employed and was thus not

allowed to pay U.LLC. The
grant was suspended at the
end of April and since that
various firms and private
people have contributed
expense money but this has
not been sufficient for any

salary.
The total monthly cost of

_ the Golden Rule was $994. In

.44 years almost 4000 people
have registered at the
Golden Rule and some have
been back many times. Over

8000 jobs have been obtained

for them and the amount of
money this operation has
saved the taxpayers must
have been many thousands
of dollars. The amount of
money that has been earned
and spent in Terrace at all
kinds of businesses must be
quite considerable.

The Golden Rule has
never asked for help fram
the Municipality before.
Now it asks for $200 a month

for expenses of rent and’

telephone, ete. This comes
to $2400 a year. All money is

deposited in the Royal Bank
and requires two signatures
on each cheque. Copies of
audits for the Golden Rule
are attached. Please give
this matter your serious
consideration. Remember
all the times that you have
made use of this service and
will probably do so many
times in the future. Hope it
is still here when you need
it! Very few projects in this
community have benefitted,
50 many. Directors: John
Pousette - Regional District,
Jim Lynch - Great West
Life, Marj Turschinski,
Juanita Hatton.

The Catholic Women's
League has promised $10 a
month, The Terrace Hotel
$20 a month, Queensway
Trading $10 a month,
CanCel, Omineca Building
Supply, Dog'n’Suds, Mr. an
Mrs. Francis Seaton have
contributed $50 each, the
Luso Hotel §20, Ole's Place
$10, Ada Solowoniuk, Ruby
Juba, Kathy Juba, John
Juba, Stan Juba, $10 each
and several other Golden
Ruler people have also
given. Several people have
promised to help if they
could get receipts to be used
for income tax purposes.
This will have to n the
future unfortunately.

The bank account now

stands at $274 which will not
last long.

Thank you for your
consideration.

Juanita L. Hatton
Coordinator for
The Golden Rule

Olympic song

Editor,
Terrace Herald
Dear Sir,

Enclosed you will find
what would have been my
entries in the “Olympic
Song Contest" except that I
was unfortunate to be
unable to meet the deadiine.
‘However, you may print itif

| you wish... -

' Olympics °76

From Mount Olympus as in
the days of old

Torch bearers will bring the
eternal flame.

Canadian skies will look
down and behold

The beauteous site of the
Olympic Games.

All amateur athletes will
gather there,

From nations all across the
whole wide world,

The best of youth so proudly
will share

Honors for their glorious
flags unfurled.

In Athens Greece, contests
and games they played

So long ago in. eighteen
ninety-six, - :

Now Montreal in finest
dress arrayed

Proudly will host Olympics
seventy-six!

Hail to the great athletes |

from far and near,
Hail to their courage,
strength and skill untold,

. honore!

Competing for awards they
hold sa dear

The medals of bronze, silver
and gold.

Olympiques Montreal!
C’est en juillet que la
flamme eternelle
Brillera ou grande joie
abonde,

. Et Montreal, cette ville si

e
Diviendra I’hote de tout le
monde.

Chantons, chantons, 4 Ia
jeunesse athlete,

Vivent les jeux Olympiques
mondiales,

Honorons le courage qui
ar de tierté
Le témoignage de fier
nationaleltt

Nous célébrons ces jeux de
concourrarces,

Ou les athlstes prouvent
leur valeur,

Ds gagnerent par force et
endurance

Sous leur drapeau la vic-
toire et Vhoneure.

Vivent les jeux! vivent les
combattants!
Vive ce trés beau pays qu’on

Chantons louanges 4 tous
heurenxy gagnants
De medailles de bronze,
argent et d’or....

Otelia LaPlante

Human rights .

‘pollowing is a letter written
by Ms. Kathleen Ruff,
Director, Haman Rights
Code, Department of
Labour, Victoria to Dr.
Kirkham, Chief Statistician,
Tunney’s Pasture, Ottawa,
Ontario.

“Dear Mr. Kirkham:

I have received a number
of complaints concerning
the use of the term “head of
the household in the Census
Canada questionnaire.

It is the view of the
complainants, and my own
view, that this term is af-
fensive and, in its effect, if
not: on the surface,
derogatory towards women.
Traditionally the family has
been thought of as a
hierarchical institution with
a male as the head of
household and the female in
an inferior subordinate
status. Our laws and
customs have been tailored
to this discriminatory
concept.

Very great difficulties
have been encountered by
women in their struggle to.
achieve equal dignity and
rights in our society. The
use of the term ‘head of
household”’ simply rein-
forces the age old inferior
status of women. In this
regard I would draw your
attention to the recent Giant
Mines Yellowhead Limited

‘Supreme Court Decision, in

which a policy based on
“head of the household’’ was
found to be discriminatory
in practice and a violation of
the Fair Practices Or-
dinance.

Even should the ex-
ceptional family decide to
put the woman as the head
of the household, this is no

solution. Women are not.

seeking to perpetuate
discrimination by now

placing men in the inferior

ition to which women
ave historically been
relegated.

A person's self-concept is
of critical importance in
determining whether in fact
that person does enjoy equal
rights in our society. By
basing the Census Canada
on the concept “‘head of the
household”, the Federal
Government has placed the
force of its enormous power
and its stamp of approval to
legitimative and in-
stitutionalize a concept that
is destructive and
debilitative as far as
women's hopes of achieving
Tecognition as equals in our
society is concerned. It Is as
offensive and unacceptable
to be required to name the
“head of household” as it
would be to name “the
preferred child.”

This office was contacted
Mr. Clair Thompson,
Vancouver Regional Census
Director, concerning this
matter. We were told that
“head of household" was
used for lack of a better
term. It is clear that other
terms such as “signer”,
“reference person
“person completing the
form" could used. It
appears that the only reason
head of household” is used
is because it is a traditional
discriminatory term and
because of lack of interest
and sensitivity to the
question of equal status of
women.

J sincerely hope there will
now be some concern in the
question of women's rights
and that the term “‘head of
household" will not again be
used in Census Canada.

1 would appreciate
receiving your comments.

Yours sincerely,

Kathleen Ruff,

Director, .

Human Rights Code

Business review on

Olympic Games”

The Bank of Montreal's
July Business Review says
that the Olympic Games
should give Canada its best
international travel account
balance sine 1967.

Although the account
registered a record $727-
mullion deficit for 1975 and a
record $66(-:million deficit
for this year’s first quarter,
the Review is counting on
U.S. economic recovery and
Montreal Olympiad to
reverse this trend.

The Review forecasts that
while the Montreal Olym-
nics are not expected to
mateh the 60 per cent gain in
international tourist
receipts during centennial
year, there are grounds for
comparison and 1976 may
even produce a small sur-

plus.
The Review sees the
“impressive Olympic

facilities’? and the in-
ternational appeal of the
Games attracting more
overseas and American
tourists to Canada, despite
Bicentennial celebrations.
The projected half-billion
dollar increase in tourist
receipts as a result of the
Olympics and the normal
annual increase in tourist
spending should help offset
the current deficit, the
Review says.

Smaller” growth = in
Canadian overseas travel:
would also benefit the in-
ternational travel balance,
the Review points out. This
occurred in 1967 and con-
tributed to the centennial
year surplus-one of only
two since 1950, The Olym-
pies could keep Canadians
from travelling abroad and
reduce the dollar outflow
which was a major factor in
the first-quarter deficit.

The recent announcement
of a quarter-million dollar

project to upgrade
television reception in
northwestern B.C. is

welcome news to ail
residents of our area.
NETWORK QUALITY
The project, which will be
carried out through a ten
year affiliation agreement
with Skeena Broadcasters
Limited (CFTK-TV), will
start with the  im-
plementation of ‘‘network-
quality” colour microwave
transmission to Prince
Rupert. This phase is ex-
cted to be completed: by
December of this year.
The Queen Charlotte
Isiands, as well as the
Prince Rupert area, will
benefit from the installation
of a new and more powerful
transmitter in Prince
Rupert. The transmitter at
Terrace will also be
upgraded, a step which will
result in greater. quality and
dependability of reception in
the Terrace-Thornhill area.
The Bulkley Valley area will
also benefit from signal
improvement as a result of
transmitter changes In the
Houston-Burns

the extension of microwave
facilities between Houston
and Terrace.

CBC has advised that the

Lake- °
’ Smithers area and also from

estimated completion date
for all of these projects will
be early 1973. This an-
nouncement is, indeed, good
news for Skeena and all
those residents of our area

who have worked for so long |

to improve our: com-
munications access can now
take pride in this major step
towards the achievement of
their goals.
OVERHEAD CROSSING
In other government
announcements of benefit to
Skeena this week is a
decision by the Canadian

Transport Commission to.

reconstruct the MeBride
Street pedestrian overpass
in Prince Rupert and the
awarding of a contract for
wharf repairs in Kincelith.

The Railway Transport
Committee of the C.T.V. has

the McBride Street
pedestrian overpass which
carries foot traffic across
and over the Seal Cove
Branch of the C.N.R. Under
the terms of the project,

approved the reconstruction-
0

one-half of the cost, up to
$27,500, will be paid by the
federal government's Grade
Crossing Fund. In Kincolith,
a $227,576.83 contract has
been let for repairs to the
government wharf. Work on
this important contract will
begin very shortly and
should be completed this

year.
CASH DISCOUNTS
The current issue of
Consumer Contact, the
consumer information
publication of the Depart-,
ment of Consumer and
Corporate Affairs, has some
valuable information
regarding cash. discounts,
which is worth passing on.
This report points out that
if you pay cash instead of
using a credit card, you
could be saving the retailer
as tauch as five percent of
the purchase price of an
article because the credit
card company may charge
the retaller this much fer
the credit card service,
Until recently,

agreements between credit
card companies and sub-
seribing merchants
typically contained a clause
requiring the merchants to
sell goods to credit ‘card
users at the same prices as
those applying to cash
transactions. This had been
interpreted by some mer-
chants as meaning that they
could not give discounts for

ash.

Stage I of the Combines
Investigation Act amend-
ments recently passed by
Parliament included a
provision making it illegal
lor a credit card company to
use its contracts to
discourage a price reduction

a merchant. Retailers
ould now be free of any
doubt that they may pass on
the savings to cash
customers, But, they are
unlikely to begin giving cash
discounts unless the
customers ask for them and
the more people who ask,
the sooner it will become a
fact of today's retailing.

So if you are purchasing a
“big ticket’ item with cash,
the merchant may well be
willing to pass on to you
some gact of what he will
save,

Consumer Contact is a
ver’ useful little
publication, and sub-
scriptions to it may be ob-

tained — free — by writing
to Consumer Contact,
Department of Consumer
and Corporate Affairs, Box
99, Ottawa, Ontario,

GHUCKLE COLUMN

Paying Later
_ They had been married
Just 10 days and he was
Boing through the mail.
“Honey,"' he said, “aren't
these bills for the clothes
you bought before we were
Married?" “Yes, darling,”
she replied. “You're not up-
Set about il, are you?"

.. “Well,” he answered, “don't

you think it’s a Hitle unfair
to ‘ask a fish to pay for the
baithe was caught with?”

Napoleon Claims ;
A wide-eyed character
who was convinced he was
Napoleon burst into a psy-
chiatrist’s office, thrust his
hand Inside his coat and de- |
Clared, “It isn't myself
T’ve come to see you about,
-doctor. It's my wife, Jose-
phine, She thinks she’s Mrs,
Richardson,""

Don't Belleve tt ‘
Wonder how many hus- -
bands believe that there are’
actually wives who “suf-
fer in silence?”