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Crown Zellerbach increases.

net earnings to 28 million —

‘Crown Zellerbach Canada
Limited icday reported record
net earnings af $28.1 million or:
$3.54 per share on sales of $297.2
million in 1973.

In, 1972, the Vancouver-based
integrated forest . products
company had net earnings of
$i1.9 million before ex-
tracrdinary items. or $1.50 pe!
share on sales of $239.9 million.
Extraordinary tenis. reduced|
net earnings to $3.7 million. |

President Robert G. Rogersl
said if an advance summary of
the yar’s financial results that
nnusually strong demand in

export markets for all major:

praducts was a key contributor

to the-best year In the com- —
‘ . newsprint demand is expected

pany’s history.

He noted that the company’s
return on investment reached
12.6 percent. in 1973. This
compares to the company's
average return of 6.2 per cent-
for the 10. years to the end of
Wt

Increased demand for three
of the company’s major

Heavy tax burdens imposed
onthe B.C,-mining industry are
having the direct effects
predicted by the industry, P.R.

Matthew, acting ‘managing -

direclor of “the Mining
Association ‘of British Colum-
bia, said today. .

He told the Sociely of In-
dustrial Accountants of B.C.
that despite the fact hat metal
‘prices in 1973 hit all-time highs .
and demand for metals was,
exlremely strong, exploration
for. new mines has declined, no
- new. mines: are being brought
into’ production, major com-

panies have moved their ex- -

ploralion activily out of B.C.
and claim staking is down by 34
percent. --

: oe February 2nd,

products contributed strongly

- to 1973 results, said Mr. Rogers. ,

“Lumber and plywood per-
formance strengihened further,
following a strong year in 1972,
and were joined by improving
pulp markets. Newsprint.

_ demand also increased, but the,

return from this product is still
not adequate.”

Mr. Rogers said the oullock
for 1974 remains promising on
the basis of early indications,
though there are a great many
uncertainties.

Demand for all of the com-
pany's prime products iz ‘still
high but a softening of Jumber.
and plywood markels Is ex-
pecied in 1974. Pulp, and

lo continue strong.

Some major uncertainties
involve supplies of imported
fuel ‘oil for the company’s ©
operations and. for ships
carrying products abroad, as
well as supplies’and costs: of
other materials.

A further uncertainty con-

be built.”

Matthew said that the mining ©

industry hastried very hard to
convince the public of its vital
role in the economy of (his.
province and the nalion.

“I, would be tragic if the
message became clear only
when it had bacome (09 dale.

“The industry is being called
upon to pay an ever-increasing,

share of the social cosls of our |

sociely dnd al the same lime (o
penerale its share of the jabs for
the young people of today and
the larger number in the years.
to came,” he said. .

“Yet Ihe economic and ad-
terms . under

| Due to the inclement weather
_ conditions, and for the benefit
of our customers whe have not

been able to take advantage
of our January Sale, we are’

. offering the same values up
fo. «toand including —
17 1974.

‘

cerns provincial government
policies “towards forest
resources, he said. '
Desplte the uncertainties, Mr. -
Rogers said he ts optimistic for
1974. “Assuming our export
markets are not hurt seriously
by the energy shortage, I look
for another good year althaugh
perhaps not as strong a5 1973."
Net Sales
(4973 )$297,246,000
(1972)}$233,868 000,
Net Earnings
(1973)$28,118,000
{1972)$11,940,00 «
Per Share Earnings
(1973)$3.54 (1972)$1.50,
«Earnings -- before ex-
traordinary items

One of the four World Centres
where members of the Girl Gui-,
de movement meet for holidays,
trainings and conferences is
‘Our Cabana,’ Apartado Postal
406, Ciernaveca, Morelos,
Mexico.

dustry must be permitied to
provide a reasonable return to
those thousands of shareholders
who risk considerable money to
make it all possible.”

In 1971, which was an average
year before removal of the tax-
Iree period on mines, the in-
dustry sold §417 million worth of-
melals, asbestos and coal, paid
(axes of $31.4 million to the
‘province, $3.2" million "lo

municipalities and $41.8 million ,

la the federal.goverriment. In
that same year, the return on
shareholders’ investment was

minus 1.1 per cent he said, '
‘ Since: 1969, he said, amend.”

ments have been made to the
provincial Mining .Tax Act,
Corporation’ Capital Tax Aci,
Income Tax Aci, Mineral Act
sud Mineral Land Tax Act and

- in federal 1axation, removing

tax incentives and loading on
new 1axes, :
‘He. said ~

royally of unknown amount. on

lhe production of minerals fram
‘ mines on leased property.

“L's difficult lo know-how

‘+ gquch more the government has
An mind buss here.ip cme very...

the. Provincial -
government is naw proposing 4. .

“INCORPORATION BAS -
- TAX ADVANTAGES

From ‘The Inslitule of
Chartered. Accountants of
British Columbia

Over the past years the level
of expenditures of both the
federal and provincial govern-
ments has accounted for an
increased percentage of the
gross national product. :

With government taking an!
increased share. of sociely’s
output, the private sector has
taken every advantage lo plan
its affairs so that taxation Lakes

‘ca legal ‘minimum fram the

results. of production.

With complex legislation
governing the taxation af
personal income and corperale
profits, it is incumbent upon this

sector of society, legally and

nroperly, to plan its fiscal af-
fairs. .

In accordance with our
legislation, personal income
and -corporate profits are
subject to taxation at different
rales. For the self-employed

laxpayer, his annual income is -

computed in accordance -with
set rules and, alter deduction of

personal exemptions and

Mining industry hard hit

sure thing - metal prices in 1973.
hit all-time highs, demand was
extremely strong and yet ex-
ploration for new mines
declined.”

In contrast; claim staking in
Ihe Yukurinereased by 106 per
cent in 1373 and-In the ‘Nor-
ihwest Territories by 192 per
cent, : _

Hesaid the present provincial
governinent questions the yaluel
of mining by claiming thal, in
1971, when production of
minerals was valued al $310,
million, the induslry paid $7.1
raillion’ to the government in
‘fees , royallies and the 15 per’
cent mining (ax. — '

The 15 percent has no relation
to gross income, but (o taxable
income, Matthew said. And, he
said, Ihe government com-

pletely overlooks these items: ~

income lax collected by Otlawa
and: returned t the Province
($1.6 million); “property lax
($4.4 million); sales lax ($9.5
million); gas and fucl saxes (31
million); and employee income
tax ($7 million). .

The return to the province
was. thus. really. about $31

Falllion, WOb$2) MMM ries

THE HERALD, TERRACE, B.C

allowances, faxed in. ac-
cordance with a graduated
scale, with the maximum
margital rate being slightly in
excess of G0 percent.

In contrast, a Canadian--
owned private. company, in
receipt of profits from anactive
business, may accumulale

profits of up to $400,000 ata tax”

rate of 27 percent, Corporate
profits derived from an inactive
business, are subject to tax at
the rate of 51 percent, of which
approximately one-half will be
refunded when profits are
distributed by way of dividend.

Incorporation therefore may

provide the following ad-—

vantages: . .
1, A shield for active business
income of up to $4 percent}

2, Deferral of tax on investment
income should the share-
holder’s rate of tax exceed 51
percent; ;

3, Tax saving on- investment
income where the corporate
rate of tax is less than 50 per-
tent, .

4, The possibility of splitting —

income between spouses;
5. Facllilating the estald

planning of the shareholder-

owner; :
6.Tax sivings through deferred
income plans and Lhe provision
af nontaxable employee ben-
fils; and

% ‘Allowing the shareholder:

employee (o plan annual income
with minimum tax cost, i.e. the
most advantagious mix of

income by way of salary and-or

dividend:

11 is axiomatic that. in

"situations _ where advantages

Friday ist.

Saturday 2nd.
‘Sunday 3rd.

For Take ‘Out Orders.

A 635-7100

ekist “there are also: disad-
vantages, and the Incorporation
of a business is no exception to
this rule. 7

In- accordance with the
Companies Act, 4 company is.”
required ta maintain certain
accounting. and Information
records, hold meetings and file”
information and annual reports.

Other disadvantages. include
payment of capital taxes, where
capital is in excess of $25,000,
and the employee-shareholder
is more restricted in terms of
deductions from income
compared with a~ proprietor-
partner of a business. - .

has been eligible on’ profiis
realized from capital tran-
sactions. . Consequently, the
transfer of a inincorporated
business inta a company could
be caughi in ‘the capital ‘gains
net, St
However, a tax free roll-over
is allowed to the taxpayer
provided the assets transferred
are of a capital nature
\obudings, “equipment, good-
will, etc.), the transferor owns
at least 80 percent of the issued
shares of each class of capilal
cater the transfer, and the
(ransferee is a Canadian
company. :

The Young Progressive
Conservalives .of- British
Columbia will be holding ‘their
first Provincial Assembly of
1974 on Sunday, Feb. 10 in

Also Added

-. YOUNG TORIES

te

7” up

WEDNESDAY, JANUARY, 9, 1974

.. In Jess than len. menths the
company ‘has registered the
following considerable ac-,
-complishments: .
-received registration for the
offering of 460,000 shares to the.
public by an April 7, 1973,
prospects; mo
completed the sale of the
400,000 registered shares;

~conducted ‘an exploration
program including geophysical

and geochemical surveys and

‘sampling of the several claim
groups in the Kitimat, B.C.

. area, ;
Since 1972 a-capital gains tax .

~shares of the ‘company were
called for trading an the Interiny
-Board.of the Vancouver Stock.
Exchange on November 14, 1973

‘execution of an option on a 8
percent interest-in the ‘Jean-
nette group;

Jscompletion af a financing
yexploration agreement witha
. major exploration company on
the Jeanneite claim groupin the
Kitimat area; and .

execution of follow-up ex-
ploration work including
drilling on the Jeannette claim”

‘Victoria, The Assembly will be
discussing organizational

problems, methods of building -

new groups, policy, commen
projects and goals.. Anyone

It's all happening at your "Family Fun Drive-in"

; "Where ares We make a lot of things better"

N

Feature
vo

(With Food

wishing lo attend should contact

Regular Root Beer
or Coffee —

Billy Goat Mines Ltd.

group. my 8

The $60,000 net proceeds from +
the prospectus offering of =
shares were originally planned ~!

" a be used forthe exploration of -

‘the Chelan group. The Clague :
group and the Maheti group, °
each a copper prospective |

.iproperty.and each located

\within a few miles pf Kitimat,

‘B.C. Programs of prospecting, :
igeologic mapping, trenching, :
‘sampling * and ‘some *

geochemical survey work were ©

recommenced fo each of the -
properties. _ The second: :
contingent phase of work:
recommended was to include -
bulldozer trenching and some .
(Giamiond drilling. re
| After
programs were underway on -
the Chelan, Chague and Maheti. |.
‘claim ‘groups, © the  direc- -
lorsaacquired the 29 Jeannette -
‘claim group inthesame general
‘area, Early work on these.
claims showed encouraging: ,
results in both copper and gold

values.

Further detail of the ex.
ploration results on the com- =

pany’s properties will be given’: -
in

e nexl progress report {o-.
shareholders, = -. of

MEET ~~

the President -of the YPC:

Paul Mitchell at 252 Woodstock: °
East, Vancouver or the local’ -

_ BC. Association executive. _
Bitleting will be provided to -
interior and northertt delegates...

REGULAR |

Yo)

& SIDE OF CHIPS

Order)

For cars displaying

_ $COUTS

OOL BOOSTER DECALS"

Terrace Scouts will be.
on hand to sell

“Pool Booster

Supporte Decals" -

‘the exploration =