(GP
“Beononsle erat)
~ghier ‘fax’ rules ““have®:

1 curbed: the popularity: of
Me “drilling funds In Canada at a

. 7 bad nie raising any’ iin

_ the ‘amopnt raised. when: :

. taxable
writeoti meant investors in.
the highest. tax bracket
éffectively had. only half _
their, Investments at, risk.,

,Publicly-offered funds are .

“thine whe strall oll anid gas.

dampanies are: “haying. “a:

"Although | sonie ney funda
year, they're a fraction of:

’ drilling. funds, were in. their, *
heyday ‘in the mid-19768: -’
One’ Investment analyst
‘estimates about $100 million .
may be raised by Canadian
funds on the drawing board,
compared to $500 million
when they were: moat

popular.

Of the handful of | proposed . .
funds, almost, all will be .
private. placements, not
offered on, the open. in-

‘vestment ‘market, Public
offerings: are running into
ihe same trouble as con-
‘yentional; stock issues —
fearful Investors interested

-_ only, in Jow-risk “prospects *.
with the highest possible -

return such ag bank term
depasiig.. 0 |
. Drilling, funds blossamed

in Canada. after the feder:
government changed tax’:

laws in..1976. to: allow. in-

vestors in limited: part-

nership -drilling funds ‘to

. deduct 100 per cent of their

energy investment from
Income.’

- “pauatly. marketed in. $5,000

r - $10,000. units... by
brokerage houses while
private placements’ can

“range much larger. An oil-

sompany acts as operator,
using. the: money to explore
‘or develop prospects spelled

-—-ayt ‘by,-the-dund.Investor

returns vary depending’ on

* terms worked out with the

operator...

~The tax
available with drilling funds
made them attractive. But
unlike that other famous tax

shelter,the Canadian-made., -
“movie, drilling funds were *
actually expected to make -

some. money for their. in-
vestors.

target

“BEIRUT (APP) — West
Beirut’s Berbir Hospital has
a Red Cross on the roof, but

* that did not spare it in -

Monday’s bombardments.
. Said Dr: Amal Shama, a
staff :pediatrician: ‘The
hospital: has been bom-

’ barded for eight years, but

never so fiercely.”

- Yet there is no. military

target nearby. The hospital
itself, Beirut’s second
largest, has no shelters, its
basements are full, and
there ig rio room for any
more patients. -

: The Makased Hospital in

._ the.same area received a

few. shell splinters, but no -
” one .was wounded.

_ Another target was the

‘French Embassy, which

had about 15 shells fall in its.
‘grounds. | There... were. 0
casualties.

French ~ ambassador .

Paul-Mare Henry described
the shelling as. .‘'in-

" discriminate.” The Israeli

government’ was , perfectly
aware.of. the. “embassy’s
location, he said,.

-“Henry.said it was the first

, time the embassy had been

-, directly in- the line of fire, '~
‘Henry said thathad: there.

‘been’ no pine trees to in-

tercept the shells, ‘the “would suspect that we are all desénsitized to something that

7 would have horrified our grandparents,“ And-it-is this.

- embassy building would
have been destroyed. :
Elsewhere In the district,

five shells fell“Monday‘on .
the.“Islamic:: ‘orphanage,’ x
although’ two. did not .ex+ them
plode. Again there were fo |

seamualties.:! 21h

a) it _ .

- Sound like fun, eh?.-

children liv here," sald ‘the

_.. orphanageé’s'"' director,
Mohamed ‘Barakat. ‘There -
were “800 ‘yesterday. The-

children ‘refuse «to leave
Beirut‘and in any case we do
’ ot know where to go.”
‘His! assistant, Perlan
Akkad, said:that because of

. the -danger the children '

have not been able to go out
of the: orphanage ‘for more
than’ five weeks.

‘with “little °; exp

major
‘broker, may_niarket two or
* three small — $5-million —

‘The |

Often the money -Was
_funnelled -into ‘exploration

‘quick: deyelopt ent -Into
revenue-creating | produ-
¢tion. Drilling ‘fund in-

vestors were expected to .
“walt for their profits, Also,

the Funds ceritredion Alberta
acreage. often produced
unmarketable natural gas.

The slump in energy

‘af’ maiiy ‘drilling. funds have 2
“jot been: Mp. ‘to many «in- :,
“vestors! expectations,” | nays
Tooke Campbell, . Van-_
‘eouver: vice-prestdent of.
- , Pemberton. Securities Lid.:
“are ‘being - organized. this .

ctation of -

opportunities » available

“from - drilling fonds ware:
“never: better.) :

“Although the ° ‘federal ;
: government has: tightened :
“ pome: tax. Jawa, the 10per:

cent’ wrlteoft * ‘still

‘available, along “with new
_ 2xploration Incentives from °
_ energy 7

the’ national
program.
A drilling fund investor
now is eligible for a tax-free
petroleum incentive
payment of a6 cents of every
drilling. dollar ‘on con-

‘frivestaient has meant

perhaps lees than a dozen
funds will be organized this
year, John Gareau,
president of Pan Cana
Resources Ltd. of Calgary,

. which has operated funds
since 1978, ‘sald his firm will
hot take on a new one this
‘year, Pan Cana’s last fund

was organized in the fall of

- 1981, just. before: the federal ,
: “budget... .

“It was about then the

curtain fell," says Gareau.

‘Campbell
berton, |

said. Pem-.
traditionally a
Canadian fund

funds by this fall. Last year,
Pemberton sold $50 million
‘in drilling funds, So far this
year’, the total is zero.

Ed Zederayko, Calgary
analyst ‘for | Gordon
Securities Ltd., said he
‘expected a number of

private placements, In-.

cluding one! for $20 million.

Private offerings seem to be,

the preferred route since
they: cost less to organize
and produce a handful of

and 20 cents on development
wells, plug a small land-tax
writeaff. In the end, the
investor in the highest tax
bracket would have about
one-third of hia inveatment

- at risk.

The drilling ‘prospects:

‘may be more interesting,

too. At the height of Western
Canada’s oil boom, a lot of

chasing “few really. good
prospects, says Campbell,

‘ Now, the tables are turned.
‘ Cash-starved exploration -

firms, usually small

Canadian independents, are- -

beating the bushes for

capita]. Fund organizers:
‘have.a chance to exact

favérable terms for in-
vestors or. forced
development of acreage

which will produce revenue .

through production fairly
quickly,

After-tax returns of 20 to .

25 per cent are possible,
says Zederayko.
' Despite the enthusiasm,

“few in’ the ‘investment

community expect a sudden
revival of drilling funds

Deapite ° ‘eccnomle un.
certainty Campbell believes

ventional exploration wells

- June were 10.5 per cent higher than at the same
“time last year, although the rate of increase

‘Department said today.

“Bont forge the Skeena High Reunion July 30 Class of 1958.

~ National food prices show sharp increases ©

- OTTAWA (CP) — — Food prices at the end of

should ease a bit this. month, the. Agriculture ~

Higher prices to farmers for cattle and hogs,
and ‘iricreased costs for importéd froita ‘and
vegetables reaulting from the decline In value
of the Canadian dollar, helped Peas food prices

You're i in Great Shope |

- up in. June for the third consecutive month,
._. Mhe cost of a- nutritious diet for a family of _.
2 four rose In June by $1.78 to $90.22 a week, says
' the department's monthly. food-at-home index.
“The department has predicted a rise . of
* -between eight and 10 per cent in food prices this
year compared with the 11, A-per-cent increase

_ Retail prices for pork } have climbed by

almost 26 per cent-since last summer, why

beef is eight per. cent higher. -
Fresh fruit prices are 38 per cent higher

processed vegetables are 20.5 per cent

As part’ of Its program to bring down }

- flation, the, government has ordered nation:

marketing boards to hold price increases to ss

per cent and five per cent during the next tw
years. «

rn

writeoffs .

Disappointing -

Cross

- Candian comic book artist, has released his first issue of |

us : -some electronic warnings. On {ts new album Vinyt Con-

. wideo industry. The people in it have no sense or morality,
_ which you,can touch a spot.on the screen and tell your TV”

"and speak right into the TV set telling it you want more

_ wanted.to know about Terrace but were afraid to ask, |

’ is not a Christian band. It hias been in mainstream rock for
_over 10 years but even it notés when you are caught.in a

-world of darkness turn to the Light.: The reagon is simple:

CORNER
STONE |

by BRIAN 0"
“GREGG

altered Peas a eavaR

Warnings come in many forms. Richard Comely, a
‘Star Rider and the Peace Machine that quotes Aleksandr -
Solzhenitzyn on the communist-super capitalist conspiracy,
te control the world.

The American rock group Kansas is also. sending out

feasions comes this warning: | -
“Your credit is good if your a member-Just a token to :
help the people remember-All we've done for you-Nobody .-
buys and nobody sells-And nobody speaks ‘til thechairman. -
tells you-We're gonna be your religion, throw those others -
way-(It's a) Fair exchange for your freedom-Fair ex-
change for you life-Hail the new ‘perfect order-Ending -

,
7
a
;

‘trouble and strife-No one can refuse our offer. It’s a fair

exchange, You're on file, our computer-Knows what's best 4

for you-We will provide the solution, for the rest of you. - i

Safety and peace, the terror will cease-Forget everything - 4

the fanaties tells you-Now you can worship the leader-All he -
A

wants is your soul-We're under control, never worry-
Always waiching you-Now you're part of the program-We'll "
be using:you-What do you want? We know what you need-
Get out of line,, we eliminate you-All for the good of the”
people-Better one person should die.” =.

Lrecently had a talk with a film maker friend who says.
she is rather alarmedby the high-tech breakthroughs in the

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she gajs, and they’d just as soon cell video snuif games
involving nude women as anything your local hobby shop
will sell you. ©

Something new has been added called “touch sereen’’ in

you want to see a blow up of that part of the picture: or more :
information’ on it.

Say, for example, you are’ ‘looking. at.a map of the nor-
thwest. You could touch Terrace on the map:on the sereen

information on that community, The computer then
switches over to video file tape an Terrace, Everything you

At a video promotion of this sytem a naked woman was
used ina selling approach. A number of women wondered if
the producers were going to get into snuff movies next. You
know, touch the screen and watch, that; {pereon Bet blown
away. |

‘Society has become desensitized toward a lot of issues. i

White ar "Bes, im ~_

tle Boys Broke

White o Bhen, Size 4, bat BL. ee ‘ye etouceetauetvesseenens

| ‘Men's Crew T-Shirt

Gide’ Pantioe

Pst Potton, Siro 8, 10, t2 or 14 - . |
in

~_ Little Girls’ Panties ae

Se Pil Pit Sin 3,4, 606. tt :
~ Little Girls’ Vest |
Blea ten curs ; 4

; _ We reserve the right to lirett avant Sales in |

ees that is going to paye the way for the hand scan 666

puter system even: groups like KANSAS are astute |
Mish toises, If peopic want.snuff video gamies to make -
ein happy the great econoniic machine is bound to ignore:

ll

tions,’ "nabody except difew will sea anything wrong

the: ; immorality involved and, ‘Ike high’ ‘school drama -
cry it. -They TE ee ee Tee ele, tke, ;

KANSAS isn't well known in Christlan circles becaiuse it ;

Retali quantities only. ri
crossfire of a greater love than man has ever known, and. In_your friendly Terrace Sateway Store. wy nf

you've got to choose which way you're going to go- in this

Either you are going tofacait now of ‘youre ging toface| it:
later, Nobdy gets around it.

Bruce Cockburn said it all: “Lord, spit on our eyes Bowe
cat tee-How lo wake up {rom’ hid tragedy. ot