inued From Last Issue

iore Answers To
Power Questions

(In this issue of the Western Canadian Lumber Worker
the series of answers to questions on power asked by IWA
members is continued. The question here dealt with is, “Is it
financially feasible to establish full public ownership in power

in British Columbia? Editor’s note.)

_ The establishment of public
ownership in electric power in
British Columbia, would first re-
quire the acquisition of the
existing power utilities, such as
the BCER, and the West
Kootenay Light and Power Co.
A second and seperate phase
would be the deyelopment of the
remaining hydro-electric power
resources in the province.

There is no longer any ques-
tion but that the province can
exercise the power to expropri-
ate hydro-electric operations
now privately-owned. These
powers have already been exer-
cised by B.C. Hydro, under the
terms of the Power Act.

Just Compensation

Any plan to transfer private
companies to public ownership
requires that fair and just com-
pensation be provided for, the
present owners, as determined
by a’ properly conducted ap-
praisal,

Attention is directed to the
fact that these privately-owned
utilities now earn substantial
revenues, and will continue to do
so under public ownership. ~

It is believed that these re-
venues are adequate to meet any
obligations assumed in respect
of the present. holdings of priv-
atcly-owned companies.

No Debt Increase

As available revenue can be
used for this purpose, these
companies may be transferred
to the Crown Corporation, and
compensation provided for the
- present owners, without adding
a cent to the direct debt of the
province,

After an appraisal which can
establish the worth of the
private investment, stockholders
of a company such as the BCER
can be issued government-
guaranteed securities to replace
the shares recalled. This could
be done without altering the
present position of the investors
in relation to the company. The
return from their investment
would be determined by the sur-
plus earnings of the company.
One important difference would
result. They would be separated
from the control of the corpor-
ation’s policies.

The transaction is no more
difficult than the many that sur-
round the merger of large com-
panies. The methods are familiar
to the business world.

Back To
Good
Old Days

a car owners the
innards under the hood remain
a complete mystery.

In earlier days, cars came
‘equipped with sets of tools and
iled instruction books.

\s motorears became more
plex, the tools and instruc-

s disappeared. Owners who
work were advised
trained mechanics.
of the future? Could- we
r to the do it yourself

Premier Bennett has provided
useful precedents which show
the way to the financing of new
developments.

Self-liquidating Projects

In recent years, the province
has added to its contingent
liabilities at the rate of
$100,000,000 a year. Borrowing
in this respect is charged against
self-liquidating projects. The de-
velopment of the Columbia, and
that of the Peace River when
necessary under public auspices
can be both regarded as self-
liquidating projects.

Such development will extend
over a period from fifteen to
thirty years. The necessary
borrowing could be undertaken
without adding to the direct debt
of the province, it is claimed.

It is claimed that if a handful
of promoters associated with the
Wenner-Gren interests can raise
the necessary capital for the
Peace development, the same
undertaking could be made in
the name of the province with
greater ease,

An examination of the fin-
ancia] statements of the Ontario
Hydro-electric Commission
(publicly owned) indicates that
financing of this magnitude in
the field of public power is
within the competency of pro-
vincial administration. Public
power in Ontario has been-on a
Self--ustaining basis in Ontario
since 1906.

WESTERN CANADIAN LUMBER WORKER >

1

FINAL INSPECTION is made of the new IWA headquarters .of Regional Council No. 1, by IWA Officers
| before receiving keys from the builders. This view shows the general office of Local 1-217, who share half
of the building. Group are from left: George Mitchell, Regional Secretary-Treasurer; Sam Collins, architect for

the building; Syd Thompson, President of Local 1-217; Stu Hodgson, Financial Secretary of Local 1-217;
and the Foreman of the building.

Sake. oe

Picture Of Average NHA Home Owner
As Viewed By CMHC Report

The average borrower of a National Housing Act loan last year was 34 years old, the father
of one or two children, made $5,716 and bought a $14,729 home.

The new owner made a down payment of $3,094 and undertook monthly payments of $96
—or 20.1 per cent of his income.

Chances were eight-to-one the horne of his choice was a three-bedroom bungalow rather than
a split-level or two-storey dwelling. ; hee

His house cost him $253 more than it would have in 1958, although the size remained relatively
unchanged at 1,108 square feet. us

His house was one of 141,345 started last year in Canada. There were 164,632 starts—or 14 per
cent more—in 1958.

Mr. Average Home Owner’s statistics were outlined in the annual report of the Central
Mortgage and Housing Corporation.

The Canadian taste in beer—
naturally brewed right here!

candi

rete

Aelirall
lager beer

CLEAR - SMOOTH - DISTINCTIVE

Zé This advertisement is not published or displayed by the Liquor Contral Board or by the Government of British Columbia.

Get a case of Molson’s Canadian today!
MOLSON'S CAPILANO BREWERY LTD,