POA meme , above) ‘ y Bjarnason produces new evidence showing ab $4-million ‘error’ sth ONT Soc wt 30, 1952 BUSINESS MANAGER'S OFFICE 128 EAST Orn AVENUE PIONEER DIVISION NO. 101 AMALGAMATED ASSOCIATION OF STREET, ELECTRIC RAILWAY AND MOTOR COACH EMPLOYEES Vancouver 40, OF AMERICA BE MIO: loyees Union = Outside Workers, 1952 re the above caption, I wish to advise ve Board of Division 101 and they have in- the appointment of Brother Gauld as Organizer fully qualified to handle such e of absence to Brother However, the International porting the Civic Employees Union, r, we wish to assure you that Division your union. Praternally yours, 0 Se el E, Wilcox, Acting Business Mgr, G. THERE 1S NO SUBSTITUTE. DEMAND IT SRU slaps Gauld for leading raid on civic workers’ union W. Gauld, recently appointed as organizer for the Vancouver Trades and Labor Council (AFL-TLC) lights’’ in abortive attempts to raid Vancouver Union, Outside Workers, and one “of the “leading Civic Employees was condemned this week by his own union, Amalgamated Association of Street, Electric Railway and Motor Coach Employees, Division 101, In a letter sent to Outside Workers by SRU acting business manager-Stan Wilcox (photostat the activities of Gauld were condemned as follows: “In response to your letter of May 22, I wish to advise you that same was submitted to. the Executive Board of Division 101 . and they have instructed me to advise you that we opposed the appointment of Brother Gauld as Organizer for the Trades Congress on the grounds that he was not fully qualified to handle such an important position, and also because of lack of interest fn labor’s problems in his own Division. Further, this Division has refused leave of absence to Brother Gauld. This action has been appealed to our Interna- tional. However, the Interna- tional office has left the matter _ With the local membership, “We wish to reiterate our for- mer stand in supporting the Civic Employees Union, Outside Workers re bargaining rights, and, further, we wish to assure you that Division 101 does not condone the actions of Brother Gauld-in raiding your union. “Further to this, we wish to disassociate ourselves in every way from his activities.” A bulletin issued by Outside Workers takes another sharp slap at Gauld. “This Mr. Gauld is supposed to be organizing the unorganiz- ed,” it reads, “but instead, he is raiding organized workers, The kindest thing we can say about Gauld is that he is a dupe for men with much more aie than he has. “Our advice to Mr, Gauld is this: Be a good union man! Stop raiding!, Get out and organize the unorganized! “Tf you can’t do this, go back to work as a bus driver. - Your fellow bus drivers are underpaid compared with our scavenging drivers. ‘They “need your help. Civie workers don’t!” ~ Sam Lindsay’s ill-fated raid- ing union, Local 407, appears to have been scrapped in favor of the latest TLC setup, known as Vancouver City Maintenance Federal Union, Local \487. Lind- say has gone back to work. Alderman R. K. Gervin, a member of Vancottver .City Council’s conciliation committee, attended the last meeting of Local 487, thus playing a dual role as employer and labor raid- er, ? Emil Bjarnason, election, independent candidate for Burrard constituency in the coming this week produced photostatic proof that the BCElectric’s a rovincial financial expert, Dr. .H. L Purdy, “‘over-estimated’”’ the company’s income tax by nearly $4,000,000 at the recent Public Utili- ‘ties Commission hearing which resulted in the BCE being Purdy is now in Burope for his’ health,’ said Bjarnason, who is running for election stand that Dr. on an anti-BCER platform “The BCER, at the last PUC fare hearing, admitted profits of $8,000,000 representing four and three-quarter percent on its invested capital,”’ continued Bjarnason. “At that time Dr, Purdy testified that the company last year paid $4,400,000 in- come tax, The report of com- pany auditors, published a week later, showed that 1951 income ‘tax was only $867,205. “In spite of this, the appeal against the fare hoist, taken to the provincial cabinet by Maur- ice Buck and myself, represent- ing the Vancouver Fair Rates Committee, was rejected by the cabinet without reason or an- swering argument. “In my submission to the cab- inet I pointed out that it has always been the practice under Public Utilities Commission reg- ulations to treat the company’s income tax as part of the cost of service, and therefore to ex- tract it from the consumer. In the past the company was even permitted to add to its cost of service theoretical income ‘tax for deficit services which had no taxable income, “If it is.to be consistent, I argued, the PUC must now give the consumer the benefit of in- come tax reductions. It could not, on the one hand, rule that increases in the BCE’s tax must be borne by the consumer; and on the other, that reductions in the company’s tax are for the benefit of the company alone. Such a ‘heads I win, tails you lose’ approach would be wholly inconsistent with the obligations laid upon the commission by the Public Utilities Act to protect the interests of the public. “Tt had pointea out in my ap- peal that the saving in income tax, apart from the reduction provided for in the 1952 Domin~ ion Government budget, amount- ed to $3,700.000. “Against this, the revenue in- ereases predicted by the com- pany, ag a result of the transit fare increases, amounts to $1,- 162,404. It follows that if the bus fare increases were rescind- ed, the company would be shar- ing with the public less than’ one-third of the benefit of the tax change.’’ Bjarnason, who has fought the BCElectric at every PUC hear- ing since 1945, is determined to utilize every opportunity during the election campaign to expose’ Here are: : ‘some of the facts he will bring BCE profiteering. out: @ Vancouver has the highest bus fares in Canada. Three cities have 10-cent fares; all other Canadian cities charge less than .10 cents. (In Toronto tick- ets are three for 25 cents.) @® Vancouver has the high- est electric rates of any major city in Canada. Here’s how the BCE rates have soared during the ‘past few years: 1948: PUC granted 8 for 25- cent fares, 1949; PUC granted 10-cent fare, 1951: PUC granted increased commercial electric rates, in- creased gas rates, $1.20 per month increase in domestic elec- tric rates, he point in doing that, is granted, Mr. Purdy - Well, before you Zo on, I cannot pass. granted another fare increase. “T under- if the present increas there is a fact there that Your figures are_not correct; Mr. Booth, for the reason that ycu. have not added into them the increase in income tax, which I am Sorry, in the fashion in which the statement is prepared, an't do. You will see there in the se I think I ought to have something around about that. Mr. Brackenridge, you don't have that figure, do you? The actual income tax for 1951 for all services, “Mainland, is $4,417,054.00. Pn transferred from the reserves o earned surplus. e year 1951 provision has been made and charged operations in the sum of $4,967,205. The additional capital cost allowances of $7,600,000 charged to capital surplus (see Notes 2 and 4), and the provision for vacation pay liability of $840,009 charged to earned surplus (see Note 6) are expected to yield savings of taxes on income estimated at $3,700,000 and $ s the companies paid instalments du 1952: PUC granted 13-cent fare and $1 per month increase in domestic electric rates. ® It is not true that rising wages forced up BCER rates. In 1948 the wage bill of BCER was $16,900,000; in 1950 it was $18,- 000,000; in 1951 it was $17,- 700,000. _ : Speaking to the _ provincial cabinet On the wages question, Bjarnason said: ing the imate rate s wequined by: the gross provision charged “The company’s application for a transit fare increase was based primarily on alleged 12° creases in wage costs. “It/ has been conclusivelY shown that the five wage , in- creases granted in 1951 were accompanied by a fall, not a rise, in total wage costs. “The company’s principal rea” son, for its application has, theTe fore, no basis in fact.” Youth Department urged by Endicott “The apprenticeship system, as it is government by law }? British Columbia today, is not much more than an excuse for cheap labor,’ said Steve Endicott, Labor-Progressive party candi- date in Vancouver Hast,’at an election rally this week. Endicot tt made this charge as he was outlining the need for a Department of Youth in this province. “This department,’’ said the youthful candidate, “would study. and improve the social, recreational, economic and edu- cational conditions of the young generation.” e Endicott pointed out that there are more than 1,400 youth in B.C. between the ages of 15 and 21 who, according to the Apprenticeship Act are suppos: ed to start work at 25 percent of the journeyman’s wage. -“Fortunately for the youth,’ he: continued, ‘‘some of the un- ions have gained better condi- tions for apprentices and some are able to start at 40 percent of the journeyman’s wage.’’ “The government appears to think that the place for youth who want to ‘get ahead’ is 1? the army,” said Endicott, a? quoted a recent statement made by: Defense Minister Brooke Claxton: “It must become just as natural for any boy in Cal- ada to take his place on OU! frontiers in Germany or Burope as it is for him to take a sum mer job on the frontiers of Ca?” ada. Both mark the beginnin8® of work in the service; both aT@ adventures; both enlarge the horizons; both earn money t be invested in laying him a bet ter foundation for a future career.”’ Blasting Claxton’s statemeD’ — Endicott said: “Youth reject th® idea that the army, or anythin to do with preparations for wey, is the way to a happy future.” PACIFIC TRIBUNE — MAY 30, 1952 — PAGE 1?