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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 01. Postage paid in cash, return

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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?”