Winnipeg Free Press

Winnipeg Free Press (Newspaper) - May 4, 1973, Winnipeg, Manitoba Winnipeg free Ivess business finance Winnipeg free press Friday May 4, 1973 Rolls Royce to stay British by Dave Thomas London up Rolls Royce motors is to remain an Independent British firm with the decision thursday to reject All the takeover bids submitted earlier this week in a secret auction. A Public share offering will be. Made instead and is expected to earn 38.4 million pounds Sterling which will pay off some of the 130 million Pound Sterling owed to creditors of the bankrupt firm. The highest tender received from a private bidder is reported to be about 35 million Pound Sterling but the Bankers handling the Sale n. M. Rothschild and sons Ltd., refused to con firm this. All the secret bids were made by British firms and the Stipe 1 a 11 o n that the Rolls Royce name would not be passed on to any foreign buyer is considered responsible for the failure of the auction. The share Sale concerns Only the profitable diesel motor and automobile division of rules Hoyce the British govern ment having already committed itself to the Purchase of the air Craft engine division. It was the Aero engine opera lion which caused the 1971 bankruptcy when it ran into difficulties with its rb-211 Jet engine produced for the Ameri can Lockheed Tri Star Airliner. The Slock Sale involves 36 million shares in Rolls Royce motor holdings Ltd. At 90 Pence Sacii and a further 6 million Pound Sterling of eight per cent loan Stock. Rothschilds said the share Issue is already fully subscribed and the allocation of shares to Day financial institutions will take account of the purchaser s nationality. It will remain impossible for an overseas inter est to buy a controlling share of the firm and carry on business under the Rolls Royce name. Jacob Rothschild a director of the merchant Bank told a news conference that British Law allows Rolls Royce to ref use to Register any big share Purchase which would shift financial control to a foreign buyer. He explained that the British government has rights to the name having taken Over the Aero engine division and would be in an embarrassing situation if there were another Rolls Royce Ltd. Run by a Pri vate foreign interest. The nationalized part of the old com p a n y is called Rolls Royce 1971 Ltd. D. A. S. Plastow managing director of Rolls Royce motors also was present for the announcement and said this is certainly the most exciting Day of my business earlier he issued a state ment to Rolls Royce employees saying As an Independent company we now have to dam o n s i r a t e to the world that Rolls Royce motors is a Success Ful company with an exciting future for All of the company Lias predicted a 1973 a f t e r to a x profit of and on that basis the earnings per share of the new Stock Issue Are estimated at 5.58 Pence. The 1 ast expensive Roll Royce automobile Sells for pounds Sterling and production last year to talled the highest number since the first one was made in 1904. Excellent Start for investors group by Jane Becker Gulf Oil increases Price Toronto up Gulf Oil Canada Ltd. Announced wednesday an increase of 25 and 35 cents a barrel in the Price paid for Western Canad an crude Oil and condensate. Imperial Oil Ltd. Started the t r e ii d to higher Petroleum juices monday a 25-cent a Barri increase that put the Field Price of crude Oil at n barrel or s3.85 a barrel when delivered to Eastern refineries. Gulf president Jerry Mcafee said the increase was necessary in is company Compeli live with other major Pur chasers of crude. Gulf buys More Western crude than it produces. The Large Price increase of for condensate which is a liquid Petroleum similar to crude Oil but More volatile reflected its Lingher value in the competitive Market. National Trust appointment Robert p. Purves National Trust company announces the appointment o or. Robert p. Purves As member of its advisory Boan at Winnipeg. Or. Purves i president of inter Ocea Grain company limited. H is a director of the Multi. Life Assurance company o Canada and other Leadin business mid Community organizations. Hudson Bay mining and smelting co., limited of Toronto plans to spend approximately ?6 million to improve the Quality of the atmosphere at its metallurgical operation at flin flon Manitoba. A rein forced Concrete steel lined stack 825-ft. High will replace the present two stacks serving the Copper smelter and line refinery to improve the dispersion of gases into the atmosphere. The Quality of air in the smelter work areas will be greatly improved after the present smelter flue and dust removal systems have been redesigned. Pictured above is a 67-ft wide doughnut foundation of reinforced Concrete the first step in the construction of the stack. Cable to company s earnings up Vancouver c p net earnings of Premier Cablevision Ltd. Rose 14.per cent in the six months ended feb. 28, to from in the corresponding period the pre Vious year. Gross operating revenues also Rose 14 per cent to in the latest six months period. During that period the number of Cana Dian subscribers on service increased by 8.5 per cent to the company has applied i o the Canadian radio television commission Lor p u r c h a s e of the system serving Oakville out., and has applications for Cable to licenses for Kamloops b.c., and Sudbury ont. Price spiral brings two track Economy Liy Leonard h Lampert the Christian science Moni Tor news service on one track we have the roaring booming overheat ing . Economy. On the other track we have a . Economy which is moving ahead much As it did in late 1972. What is a two track econ omy it is an Economy in which Price changes Are so Large and taking place so rapidly that the Normal measures of the Economy Are distorted. To make any sense of what is happening the measures must be Bro Ken Down into those eco nomic indicators which Are expressed in Dollar terms and the so which Are expressed in physical terms. The first Quarter of 1973 has witnessed a phenomenal Rise in prices exorbitant increases which have not been seen since the scare buying Days of the korean War 20 years ago. Industrial raw materials Price wholesale prices and consumer prices have All exhibited marked acceleration. There is almost no Lime when prices arc actually standing still. Consequently there is Seldom a time when Dollar measures and physical measures of the Economy move precisely along parallel tracks. How Ever the divergence be tween the two tracks today is extraordinary. For example retail sales which Are measured in Dol Lars jumped by 7.4 per cent from billion in de Cember 1972 to billion in March 1973. This com pares with a 4.5 per cent in crease in retail sales in the preceding three months. Industrial production on the other hand which is measured in physical terms Rose by 2.1 per cent from december 1973, through March 1973, com pared with n 2.7 per cent in the preceding three months. In other words while re Tail sales were accelerating upwards in the first three months of 1973, the upward Pace of Industrial production was slowing Down. While Dollar retail sales were overheating physical production was Cooling Oft. Nonagricultural employ ment measured in number of workers another physical measure of economic activity d i d manage to show an infinitesimally larger increase in the first three months of 1973 than in the last three months .1972. Nut for All practical purposes there was no speedup in the growing number of employed workers in Early 1973. Physically then that is in terms of real economic activity the economic re covery Lias yet to Speed up in 1973, notwithstanding All the talk of the recovery get Ting out of control. What is really out of control is the Price mechanism relating physical goods and services to what is to be paid for them. The two diverging tracks were dramatically portrayed in first Quarter 1973 Gross National product Fig ures released a few Days ago by the department of Commerce. Gnu As measured in Dol Lars Rose by an annual rate of 14 per cent in first Quarter 1973 compared with fourth Quarter 1972. Gnu As measured in physical terms Rose by an annual rate of Only 8 per cent. Some concern has been expressed that the 8 per cent annual rate in physical terms is still too rapid a rate of Rise for the Good of the Economy even it it is so much less than the Dollar rate of 14 per cent. Such concern is somewhat diversionary. It is True that an 8 per cent rate cannot continue Loo Long before the nation s physical capacities and productivity would be unable to sustain it. But this is perfectly natural and reasonable. The expected consequence of a recovery from depressed conditions such As prevailed in 1969 j970 is that the rate of Rise will not be sustained once the Slack is taken up. Concern Over an 8 per cent Rise in physical terms should not be allowed to divert attention from the Al ready out of control 14 per cent Rise in Dollar terms. Tic physical term Rise of 8 per cent reflects a very slight slowing Down of its previous Pace. The Dollar term Rise of 14 per cent reflects a substantial speeding up of its previous Pace. Although the two main tracks of speeding up and slowing Down Are Clear each of them has. Feeder lines Over which traffic has been moving More slowly than on the main line. On the Dollar track for. Example personal income which is measured in Dol Lars slowed its rate of re covery considerably in the first Quarter 1973 from that in the preceding three months. From the end of 1972 through March 1973, the rate of Rise i personal income was Cut drastically in half from its Pace be tween september 1972 and december 1972. On the physical track the rapid improvement in the unemployment rate in the last three months of 1972 just about came to a Hall in the first Quarter 1973. Having shown a substantial improvement from 5.5 per cent in september 1972, to 5.1 per Conlin december 1972, the unemployment Rale managed to move downward to Only 5.0 Oscr a Cal by March 1973. 1973 copyright Christian science publishing society Mumpert is director of stalls and Linlor Norm mass. The investors group of Winnipeg had net operating income of or 26 cents a share for the first three months of 1973, com pared Wilh or 20 cents a share in the Compa Rable period a year ago president r. H. Jones told the company s annual meet ing thursday. Allowing for extraordinary items such As net gains on interests total net income for the period was compared with a year earlier. Of the total profit or. Jones said that about million came from activities of the Parent company and its wholly owned subsidiaries including invest ment certificate Mutual fund and Trust operations another million from investors share Era in great West life Assurance co., and from its 5l-per-cent interest in Mon Treal Trust co. Or. Jones said the year appears to us of. To an excellent despite the recent Downside in equity markets which has affected the company s Mutual funds division adversely. However he told the free press later that sales of investors funds outpaced re de m p t i on s in the first Quarter of 1973 reversing the picture of the last two years. Also he noted the com Pany is becoming increasingly diversified Wilh its controlling inter Sis in life Nair acc. Through r e t West. Life and Juo Trca. Trust co. While Mutual fund sales of about million last year were about the same As in 1971, the Mutual fund division s contribution to la e s i o r s Zoial earnings dropped to 18 per Conlin 1972 from 32 per cent four years earlier he noted. Additional initiatives win lie taken in the months and years ahead to further our objective of building a ser vice organization offering n Complete Range of financial services and planning to individuals and or. Jones said. Investors objective is an improved rate of return on shareholders investment and a greater degree of financial stability in Over All operations. As previously reported. Investors had net income of 8 million last year or 8j cents a share compared with s9.7 million or 63 cents per common share in 1971. Of the t o i a 1, about or 46 per cent came from investors 50.1 per cent interest in great West life and other 000 or four per cent As dividends from investors interest in Montreal Trust about million or 18 per cent from its Mutual fund operations and the remain ing million or 32 per enl from incest men car Lif Icale operations. Officers said Laler they cup eco to know May 10, when Canada steamship lines files its share Pur Chase transaction with the Ontario securities commis Sion How much of the com Pany is now owned by Power corp. Ltd. Of Mon Treal and its subsidiaries including Cal. Power corp. Chairman Paul Desmarais said after the meeting he understands Cal bought a fair sized Block of investors Slock Lale in april and bought the holding of Ca Nadian Pacific a few weeks earlier. He did not Rule out further purchases by Cal or another Power corp. Subsidiary but said his firm had no particular in Terest in owning 100 per cent of investors. Nor did he see any further additions from the Parent company to investors 17 m a n Board. Power corp. Now holds 63.4 per cent of investors voting shares and has five of its executives o n investors Board. Shareholders approved a bylaw to raise the pay of directors other Ihan employees or salaried officers of the company to annually from the present plus for eath quarterly Board meeting at ended in place of the meeting fee now paid. The increases will bring investors directors pay in line with other Canadian financial institutions though still below the Rales paid by Many other publicly owned companies c. E. Vice chairman of the Board told the meeting. For Sale or rent so. It. Warehouse building High ceiling. Approx. 20 it. Or More divides into 4 Bays situated on 12 acre site in East Kildonan. If interested reply to Box 1706 free press Royal Bank appointment or. . Dick White the Royal Bank of Canada in pleased to announce appoint ment of or. R. G. Dick whits manager main Mountain Winnipeg Branch. Or. White succeeds or. A e. Gordon Holmes who hat assumed management of our Bois Sevalen Manitoba Branch. Or. White a native of is Loraine Manitoba joined the Bank at Pierson in August 1960 and has since Hek various positions in Ontario and , serving As Assis Tant manager beaus your Man Nob i Branch. Company reports loss Vancouver c p Crest Rook Forest Indus tries Ltd. Lost million in 1972 or a share com pared to its 1971 loss of million or a share the company reported Here. Sales increased from million in 1971 to million in 1972. The company said incr Cal on Long irm debt was mainly responsible for its loss position. The inheres a was million in 1972 and million in 1971. Income from its operations in 1972 was Mil lion As compared to in 1971. Cash flow was million in 1972 and in 1971. Company president Victor Brown said in a report to shareholders that he was optimistic about the future. During the year million of Long term debt payable to the Honshu paper co. Ltd. And Mil Sujishi corporation was re deemed and replaced by preferred he said. This change will result in a substantial reduction in in Tercel costs and an improvement in working capital. The Strong demand for lumber and plywood continues Iho increase in demand for pulp Over the past lev months has raised the prices Well above i Host anticipated. Or Colbrook shares Are trading on the Vancouver Stock Exchange in the Range. Algoma Central railway notice of partial redemption first mortgage sinking fund to maj series b due june 1, 1991 to the holders of the undermentioned so first mortgage sinking fund Bonds series b of Algoma Central railway due june i 1991. Nonu a hereby Given that pursuant in the pro visions of the deed of Trust and mortgage made As of the 1st Day of March 1959 As supplemented by the first supple mental deed of Trust and mortgage made As of the 15th Day of May 1971 the Trust Between Algonia la neral railway the and the Royal Trust company As trustee the Hirst mortgage sinking Lund Bonds series b due june i 1991 the Senes i Bonds in the aggregate principal amount of bearing the under mentioned designating letters and numbers and of the undermentioned principal amounts have been drawn by lot by the trustee for redemption out of sinking fund moneys on 1st Day of june 1973 and that such series b Bonds or the portion thereof called Tor. Redemption will therefore to. Redeemed on the 1st Day of june 1973 at the principal amount so called upon the surrender of the said series i Bonds with All in matured coupons if any pertaining thereto at any Branch in Canada far Northern branches Csc plod of i lie Bank of Nova Scotia. The redemption Date of june 1, 1973 being an interest payment Date on the series b Bonds there is no accrued interest payable on redemption. Interest payable on june 1, 1973 on the undermentioned series b Bonds will be paid in the usual manner. In the Case of each series b Bond of which part Only of the principal amount has been called for redemption the Holder shall upon presentation of such series 1 Bond and upon receiving the moneys payable to him by reason of such re Semmion. Surrender such series b Bond for cancellation and the trustee shall certify and deliver to or to the order of such Holder a new series b Bond or Bonds of aggregate Prin Cipal amount equal to the unredeemed part of the principal amount of the series b Bond so surrendered. Notice is also hereby Given that in accordance Wilh the terms of the Trust deed interest upon such series b Bonds or such portion thereof so called for redemption shall cease to be payable from and after the said redemption Dale namely the 1st Day of june 1973, and coupons Lor interest maturing after the said Dale upon the said series b Bonds shall be void. The designating letters Anil numbers of the series h Al Bonds so called for redemption and the principal amounts tic roof arc series b Bonds of principal amount called in full Coupon m0.1989 m0056j m00570 1 m01276 to 1279 moi466 to 1563 m01824 m02562 m02939 Bonds m0.1279 m03016 m0393.1 m05783 m05842 m05847 m05948 m0598i Modoono m0607 Bufill m06135 m063r7 m06401 moot 12 m06812 m06826 m06882 m06988 m07051 m07075 m07127 m0729 m07.170 m073s7 m07401 m07694 m080i5 m08i03 m08i14 m08136 m08224 mos238 m08284 m08.ll mos338 1 m08.vjs mok470 mos538 m08849 m08874 m08872 m08921 m09957 fully registered Bonds frx01292 frxooi47 fully registered series b Bonds of which part Only have been called series b Bond number frxoi288 frx00017 frx00236 frx00082 frx00226 frx002i9 frx00220 frx00221 frx00032 frx00240 frx00252 frx00248 frx00251 frx00247 frx00253 frx01289 frx02016 frx020io frx00053 frxooi07 frx0016i frxooi8i frxooi53 frxooi35 frx00078 principal principal amount amount or Bond cil cd series b Bond number frx00243 frxoi27i frx00022 frx01268 frxoi309 frx00258 frx00259 frx01321 frx013io frx00094 frx00131 frx01307 frx00026 frx00027 frx00028 frx00029 frx00030 frx02009 frx00267 frx02273 frxoooi8 frx0003i i-kx00273 fkx00120 principal principal amount amount of Bond cil cd 25 000 100000 5000 dated at Toronto Ontario this ,18th Day of april 1973 Central railway by the Royal Trust company trustee ;