Winnipeg Free Press

Winnipeg Free Press (Newspaper) - May 4, 1972, Winnipeg, Manitoba Winnipeg Ftfe press thursday May 4, 1972 Job offer unveiled Wiy of premiered ssi Breyer came to Power he to skirted he had to make the or Grose was testifying be fore the commission of inquiry if to Churchill Forest Indus tras Complex. Employed by the Prince red Island government he Garner chairman and Gen Eirsie manager of the fund now the Manitoba development corporation and former Deputy minister of Industry and com Merce. He resigned from the fund March 31, 1970. Or. Grose related a sequence events to the commission be said was reconstruct from memory. Then after b y commission counsel he agree to some changes. But he would t agree the Job Prospect was discussed when the master finance agree ment was being signed for the Mph project. Ife testified that in 1967-68 the fund was besieged with criticism in the legislature and the press and said i d had enough of 3ie. Said fund officials weren t Able to answer Back and just had to take it. He said he was looking around for a new Job but the situation came to a head after the Pune 25, 1969 provincial election and he decided he had to make the on the sequence of events which he later agreed were in Correct in at least part or. Grose said or. Oskar Reiser of Monacan a of Switzerland was in Winnipeg in. July 1969 and he asked or. Reiser if he would speak to the ernsts the West Gern Iari family involved in the m 1 is Industrial Mills Ltd. Project at the Pas to see if there was any interest in him going to met As pres ident and chief executive of _ i finer. He said or. Reiser obviously took this up Wither. Alexander Kasser of techno pulp inc. Of Montclair new Jersey. He said the Job topic came up later at a meeting on other business in Zurich Switzerland. Or. Grose said or. Reiser thought the ernsts would been Thusia Stic about the idea and Best for or a pose to draft an employment would be in in said he prepared an pm contract in Toronto to a meeting with or. The sir. And or. Kasser in Mont or. Grose testified he signed the contract in Montclair before and said he d go along Only if both the ernsts Wii he i m and Klaus Peter Ernst agreed. The contract was to be effective dec. He said or. Kasser said he should look for a House in Winnipeg and that Mph subsequently bought a House at 1188 Wellington Crescent. Before the dates were questioned or. Grose said he started to question the Wisdom of going straight from the fund to a Borrower. The fund was loaned More than million for the Mph project he said he called or. Reiser in Zurich in december 1969, and told him he d changed his mind and said the contract was t formerly offered to him. Or. Grose said former finance minister Gurney Evans was the person most influential in making him change his mind. He said or. Evans thought it would be wrong and there might be a conflict of in Terest. Regarding the dates commis Sion counsel d Arcy Mccaffrey suggested the Montclair meeting was about july 3 and 4. Or. Grose said he did t think so. But after further or. Mccaffrey said a letter indicated Wilhelm Ernst signed an employment contract aug. 19, 1969, regarding Mph and or. Grose. Or. Grose then agreed his dates were wrong. But said he did t see a final contract with the ernsts s signatures. Also or. Mccaffrey said. An expense Sheet and airline ticket stub indicate . Grose made a trip to new York by Way of Toronto june 30 to july or. Grose agreed that must have been the Date. Asked if that then put the Zurich meeting at May 29 and 30 the master finance agree ment regarding Mph was dated May or. Grose said he would like to Check Back Home regarding this and let the inquiry know later. Earlier he said no contract was discussed at the time the master finance agreement was being signed. An unsigned copy of an employment contract regarding Mph and or. Grose was produced before the commission of inquiry in december. It had an effective Date of dec. 1, 1969, and would have Given or. Grose a minimum of a year for 15 years the car of his Choice with a replacement every two years a Stock option expenses and membership in two clubs one month s Annu Al vacation if for disability or other reasons the company terminated the contract he would be hired As a consultant for a year and he could give up his position on six months notice or. Grose testified he could t recall any details of discussions in Montair june 30 to july 4. Also he said he did t recall any discussion creasing the cf1 float fund from to million but said he must have been aware of the move As he signed a Che que regarding the july 1969 requisition. And he was t Able to help the commission regarding the july 22 meeting in Montclair which he did t attend but which it was said d. M. Rodgers of the fund now loan director of the development corporation attended regarding changes in the payout of Money into the forestry project. He said that following the election there was concern by the principals behind the project and by himself. He said it was a Correct Assumption there would be concern about the flow of funds into the project tie said he tried to suggest to the principals that the world was t coming to an end and that they should t get too excited. He said it was a fair ment to say the election result was an unpleasant Surprise be cause of the nature of the things said regarding the com plex during the Campaign. Or. Grose said there was no question that he wanted to see the Complex completed. Also or Grose agreed that at this time he had authority of the fund Board to negotiate a put agreement Bank Guaran regarding Mph which was to be for a maximum of million but that it had t been turned Over to or. Kasser in written form. He said this was t tied to the or. Grose said he wanted to make it Clear that at no time did or Kasser of or. Reiser try to put those kind of conditions. He said he did t think or. Kasser or or. Reiser would be a party to those kinds of things. Also commissioner Leon Mit Chell said it was observed As fact that in mainly. July and August 1969, there were enor Mous increases in fund Money going in to the forestry project. He said this seemed consistent with the apprehensions people had that the hew government might Stop the flow of Money. He asked if or. Grose agreed to the relationship Between these Points. Or. Grose said he. Did t know if he could agree. He said the facts were right that there was a Speed up in the project. He said there might have been some basis for this but said he could t say More. He was to continue his Testi Mony before the inquiry at 10 . Thursday in the auditorium of the Norquay building 401 York Avenue. The members of the commis Sion Are c Rhodes Smith chairman retired chief Justice of the Manitoba court of a peal Murray s. Donnelly pro Vost of University College University of Manitoba and or. Mitchell chairman of the Mani Toba municipal Board. Mph was one of the four for Estry firms placed in receiver ship Jan. 8, 1971. The others Are Churchill Forest industries Manitoba Ltd., River saw Mills company and James ber Tram and son Canada Ltd. Casting strike ballots continued the dispute centres on a re quest by the Union to have the front Vestibule of each bus kept Clear to enable the Driver to have better control of the vehicle. Drivers complain inspectors at Rush hours crowd ves leave Drivers to Sorf the problem out once the bus has moved on. Strike would be the since the general strike Nipes in 1919. There was an unofficial Short walkout by Drivers for a few hours about 15 years ago to hold a special meeting. Public notice the West Kildonan Community committee invites the residents of the Community to attend the regu Lar monthly meeting at the Community offices 1760 main Street tuesday May 9th, 1972 . Councillor we. H. Sasaki chairman Jefferson Ward councillor c. W. Baker Kildonan Park Ward councillor d. A. Yanofsky Garden City or limited offer. We want every music Lover to take a stand. Onus. Nores cob this top Quality Toresco stereo component system features 40-Watt am fax tuner with acc a dual 1214 automatic turntable with Auto manual on off switch and a Clear acrylic cover plus two Toresco speakers. Buy this component system now and we i give you a Quality stand Worth to go with it at no extra charge. Your total listening pleasure but you la have to hurry. Supplies Are limited and people know a Deal they hear one. In Walnut. Stand. 1 value Simpsons Sears satisfaction guaranteed no Down payment required. 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