Winnipeg Free Press

Winnipeg Free Press (Newspaper) - July 7, 1973, Winnipeg, Manitoba Winnipeg 1 Ives business finance 11 saturday july 7, 1973 from the business world b Philip Anwyl the most significant Milestone in the relatively Short history of Coop implements Ltd. Was reached this weekend when the Winnipeg based manufacturer and distributor of farm machinery officially opened its new million Plant in Transcona. To the process the co operative could never be accused of neglecting the occasion. The 33-year-old firm treated a red Banner Day accordingly. Along with premiered Schreyer and several of his Cabinet ministers a crowd of approximately most of them Coop members and their families were expected to turn up saturday for the one Day ceremonies and celebrations. The Coop flew in their representatives from South Africa and Colombia not to mention a Large number of farm writers across Canada who enjoyed a 12-hour Binge the pre Vious Day starting at 12 noon and officially ending at Midnight when the last of the bleary eyed journalists made their Way Back to the hotel bedrooms. There is Little doubt that few of Coop implements pioneers could have envisaged the remark Able growth of the organization when they launched the Coop just prior to the second world War. Emerging from the dust bowl Era of the depressed 30s, Coop implements like the co operative move ment in general was the result of collective action taken by a few Ordinary working canadians who believed a new1 approach was needed to bring Prosperity to the Prairies. At the time of course there was nothing new about the co operative concept which has been with us in one form or another for a few thousand years but the movement did t have its baptism in West Ern Canada until the 30s. From then Onward credit unions and Coop groups gathering clout in the late 40s following the end of the War have emerged As Strong financial institutions. They have adopted Many practices of private Industry in gaining a greater foothold in the Prairie Economy. In Manitoba alone co operatives have seen their assets grow from ?50 million to million during the last 10 years. Coop implements members Strong shared in this growth. Today it boasts a Plant of Square feet which according to its Toronto consulting engineers is one of the largest under one roof in the nation. The Plant financed by a Bond Issue which was snapped up within six weeks has been built with future growth in mind. Occupying 40 acres of property on the Edge of Transcona the Coop can expand its facilities in two directions and expects to do just that within the not too Distant future. The organization has increased its factory workforce by 175 to goo and expects to increase the number even More As its products find new1 markets. Coop implements major customer of course is still the Western Farmer. It had hoped to make inroads in North Western states such As Minnesota North Dakota and South Dakota but according to d. V. Larson president of the Coop has since pulled in its horns South of the Border due to the Uncertain Trade relations Between the two countries. Nevertheless Coop implements is still search ing for markets overseas. Firm footholds have been established in South Africa and Colombia where the Coop has a full time distributor and representative respectively. The company s products Are already Selling in South Africa while they Are still at a test ing stage in Colombia. Or. Larson has High Hopes in Colombia which he sees offering excellent potential for co operatives. Colombia he says seems to like dealing with Cana Dian outfits particularly co operatives. In the Case of Coop implements Colombia thinks co opera Tives will play a better role than the Industrial giants in developing the one Market or. Larson would like to see penetrated is Russia which is increasing its trading re lations with Western industrialized nations. The so Viet Union is already testing the group s products but there is still a Long Way to go before reaching the sales stage. Once you get a foothold in the russian Market there s fantastic said the Coop implements chief. If you have a Good relationship with them the russians will stick with you. A firm can look for several years of in the meantime the Coop is anticipating sub Stantial sales gains this year As the farm Economy in the midst of an excellent climate world wide for growth continues to Boom. Recovering from its losses incurred in 1969-70 As a result of the great wheat slump the Coop is now showing a surplus. Making healthy sales gains last year the group has projected sales of million by the end of 1973. The Coop whose combines swathes discern and tractors account for five per cent of the West Ern farm machinery Market will be Able to Manu facture rather than merely assemble products a great Deal More than it has in the past As a result of moving into its much larger facilities. As Well As marketing in the United states through the Steiger tractor co. Of Fargo n.d., the organization has in agreement to sell swedish and German tractors with Volvo and Deutz adding 8 to 10 per cent Canadian Content to the vehicles through its Assembly lines and will Start completely manufacturing combines. Or. Larson expects the move towards producing combines rather than importing the parts will help make the Coop even More competitive in a Market dominated by the North american big three Mas sey Ferguson John Deere and Ford not to mention of course Winnipeg s other major farm implement manufacturer versatile. Coop implements will also be pressing Home its claim that As a Prairie Coop with a Chain of 62 dealers stretching from Winnipeg to peace River alta., it is better positioned in responding closer to its clients needs regarding servicing and Back up assistance than the Eastern based giants. We have a pretty direct line of communications right from the customer through the dealer to the top said or. Larson. Arthur f. Burns an important message injecting facts is confusing Energy debate by John Meyer Canada s future Energy policy resources minister Macdonald is quoted As saying will probably emerge from a political consensus. For consensus one should perhaps read Compromise. The development and exploitation of Energy Are giving every indication of becoming for the new democrats a logical corollary to the corporate rip Oft As an election Issue. Thai s hardly a Prospect the liberals will re Lish. Energy is not the Sorl of Issue Pijie liberals would choose to be cd neral to the Campaign. The Nolion of a consensus emerging on so Complex a Mailer particularly one has already generated such strongly nationalistic feelings is in any event somewhat naive. It is arguably Consi Lenl Wilh Pic concept of participatory democracy and Lias a priced Cal in the tortuous and politically costly not to mention economically damaging emergence of a reformed tax system. It will presumably suffer these same disadvantages As Well As others including obsolescence. The need for an Energy policy is now not inc iwo or three years Down the line thai the process of achieving a consensus implies. To be sure Canada does have a policy now Al least insofar As it applies to Petroleum products. But that policy is rapidly losing if it has not already loss us Validity under the Impact of rising prices and accumulating shortages. And it is moreover limited to Only one form of Energy that which is liberated from crude Oil. The response to the review published by the govern ment last week an Energy policy for Canada phase one is understandably disappointing in this respect. Still a Case can be made for it in the Clent to which it clears away misconceptions of Canada s Energy situation one of the most prevalent of which is that our Supply of Energy is such As to give us a Strong bargaining position relative to the . More than a casual Clement of Wishful thinking is apparent in the argument most urgently adv Calvd by Eric Kierans that Canada should use the leverage of its sup plies of Energy to work out More acceptable trading relationships with the . The government s report shows How Little that leverage is Worth with Canada supplying Only 6 per cell of America s Oil and Gas re qum monks and potentially capable of supplying no move than 12 per cent. To be sure Canada is supplying markets thai would be More difficult to Supply from other sources Domestic or foreign. That gives a Lille More weight to Canada s role As supplier than the figures indicated. But Given Canada s Reli Ance on those . Markets to help finance and otherwise support crude Oil and natural Gas development for Domestic usage it s obviously arguable that Canada has More to lose than to gain by threatening to withhold supplies. Another major misconception that the report clears away has to do with reserves of Energy. The cries of alarm Over the possibility of Early Domestic shortages Are shown to be somewhat Premal Urc. Canada the report finds has adequate supplies of Oil Gas Coal and uranium for foreseeable Domestic requirements. The real problem is the allo cation of those supplies to achieve maximum efficiency and lowest Cost. It s difficult to see How Lylial is to be resolved by consensus when lie economics of Oil alone Are enough to baffle the experts Al limes. What is never Given enough attention is the extent to which the life of existing reserves of Energy can be pro longed by technological advances. But scr insulation of new Homes the report Solcs would reduce fuel consumption by As much As 30 per cell. There Are literally dozens of ways of saving Energy which Are now within our grasp move ways will he found As the urgency to conserve Energy is More broadly recognized. The report in this respect is particularly useful for the perspective it imparts Federal Reserve won t relax tight Money policy Burns the most important message for the administration siness Community in or. Burns testimony by ii Obat Rowen Washington special tons if there Ever was any doubt that Federal Reserve chairman Arthur f. Burns is unhappy with the 60-Day Price freeze and the administration s apparent unwillingness to think of new taxes for the phase four period it was dispelled by his testimony at the joint economic committee the most important i a and for the business Community us Umnouy is that he sees nothing in the freeze and the prospective phase four thai will permit the relaxation of a tight Money policy. I Don t see the Federal Reserve beginning to moderate its credit policy just or. Burns testified. I can not encourage the thought of lower interest rates in the imme Diate or. Burns is known to feel very strongly on this Issue. Despite the fact that a tight Money policy involves the risk of triggering an Early recession or. Burns feels that it is the duty of the Federal Reserve to stay with that restrictive policy until the Money managers get some help on the fiscal Side. This presents the administration which is struggling to get out of the freeze straitjacket and into an acceptable set of wage and Price standards for phase four with a painful dilemma because there Are already convincing signs that the tremendous economic Boom peaked in the first Quarter. Industrial production and personal income gains have slowed somewhat the latest readings on Plant expansion Are somewhat less exuberant than they were a few months ago and airline travel which some consider an Advance indicator has turned sluggish. The administration therefore is somewhat naturally gun shy of proposing a degree of additional restraint that might come into effect when the Economy no longer needs or. Burns response to this argument is to recommend fiscal devices that would have an immediate Impact and which could be altered or abandoned quickly to meet changing circumstances. For example he argues for an in vestment credit that could be varied from 3 to 15 per cent to replace the 7 per cent investment credit which has been helping to fuel the capital goods Boom. And even More novel Burns proposal is a compulsory savings which in effect would to a 10 per cent sur tax on existing tax liabilities which would be locked up in the Federal and then turned Back when the Economy needs a shove Forward. But would new taxes be politically feasible the Man who has the most to say about these matters rep. Wilbur Mills the powerful chairman of the lax writing ways and Means committee told this column after or Burns testimony that i Don t think it s appropriate to raise taxes now because of the threat of an economic Down rep. Mills agrees with or. Burns that there should be More fiscal restraint but he would achieve it by further cuts in the proposed billion Federal budget. I Don t like Liis year to year increase of ?18 to billion in spend rep. Mills says. What docs it All add up to or. Burns wants help on the tax Side and he in t going to get it. Or. Mills would like help from the spending Side and that s not very Proba so control of inflation will devolve on a very restrictive monetary policy which like a tougher lax policy will accentuate the downward forces in Ihu Economy and has ten a recession. What effect phase four will have on the whole picture is at this Point an open question. But when and As the next recession arrives the Federal Reserve will be blaming the administration the administration will be blaming the Federal Reserve and they both will be Point ing a Finger at Congress. The rest of us will be left holding the hag wondering Why All sectors of government can l gel loge Lher to do a Heller Job of managing and planning the Economy. Excellent if Job but find the right help wanted National financial George p. Shutlz or for Hal Mailer Una co a Tion located in Washington ., requires to any finance min intelligent chief executive willing to travel of a major nation would to offered the Posi sively capable of dealing diplomatically with j. A. But what is the Posi Nance ministers and errors of Central Banks is the function of 125 nations and responsible for directing a Slaff of More than persons. Salary and chairman of the cd to Reform inc Mono Bank for tary system. Schweizfr Woods monetary system settlements. But he said was 61 on May 20. His has been shattered. In rented by a Liberal term cd pics on August Era of floating currencies 1 i a t sol demean 31. Mio h i Pense and entertainment allowance a chauffeured limousine and a Post considering Hal the . Rejection has a role. And until major Stra s background. He is deeper origin. Officials Lions agree on How lord a former prime minister were annoyed by what form the system no ordinarily there d be a line to succeed finance Miniver in they considered meddle mince for the Post will the Netherlands. He is some Ness. Immediately know what his Power will looked up to by his own after Percsi Donl Nixon so Paul Schweitzer As managing director of the International monetary fund the pay is free and Clear Hal is net of income taxes. The appurtenances of the and thai Vered the Dollar s link the suspense and delay gives him influence with from Gold on August 15, in finding a successor Are Oiler governments. The 1871, Schweitzer called for damaging. If employ if m an a g i n g direct . Devaluation of the Cus arc beset by double Lor slip important though Dollar by raising the Price doubts. They can t assess it is probably would not of Gold from to an their responsibilities in embellish ins scope or ounce. He also recon the reformed beautifully furnished Headquarters Are regal. And there s ample of porn Unity for doing Good contrib Liiri to the expansion of Trade and helping mended prompt meetings system Ami they Don l unhappily cd cols in re of monetary authorities to know whom they la be cent years have modified put the humpty dump cd working for. It s info Stu the Job detracted from Bretton Woods system to mile that the retirement it in France i ran into Geller again. Of Frank Southard Cleu these harsh words the most finance ministers to managing director co managing director has to and cd neral Bankers fell insides with Schweitzer s be a Lackey of the far from meddling Oping nations in their commercial met similar comments Schweitzer was doing his Schweitzer is elsewhere m Europe but Job. The advice he offered and devoted hut he s Jenc Post would Appal to ambitious so ver Dantly sex was followed. But this the final throes of office pressed. Did t alter the . Trca so it becomes urgent scions men interested in adding to the sentiments Are sury s Lack of enthusiasm. Name his successor. That an exaggeration. They the differences Between would give if Well being. But if directors Are not having an easy Back to the . Re Schweitzer and . Of pcs a sense of continuity Section last september officials won t Handicap a and purpose and put an Schweitzer for a third new incumbent. After All end to nervous finding the right Man. Term. . Of the . Has More than tinn Appeal was made to jello Zijlstra president of the motherland suggested that a one fifth of the vote in the younger Man Wilh a if. No person Noil grata fresh Outlook was need to Secretary of the will i be working for a Strong Man or a weakling itt Chile venture called threat to multinationals keeping Cool with Cool prices is the Way Young entrepreneur Hea ther a Archield of Ottawa is running her business. Heather is doing a brisk run on Koolard combining pric ing with the current spell of hot weather. By i Philip w. Mckinsey the Christian science Monitor news service Washington A Senate foreign relations subcommittee thai investigated International Tele phone and Telegraph com Pany s attempt to manipulate Hie chilean presiden tial elections charges thai such a Lively threatens to give All multinational corporations a bad name. If itt s actions in trying to on isl the Central intelligence Agency s Aid in subverting the elections came to be accepted As the committee report said no country would Welcome the pres ence of multinational Cor the subcommittee chair Man Frank Church d of Idaho plans to introduce legislation to make it Ille Gal for . Cilia cons or corporations to offer Money to a government Agency to interfere in foreign elections or for the Agency Loac Cepl. Senator Church said he was surprised to find Luiere is no Law to prevent it now. He said that although itt apparently did nothing illegal the highest officials of the huge conglomerate overstepped the line of acceptable corporate senator Church also scored the Cia for its complicity in inc scheme and suggested that appropriate committees of Congress Lake a Good look Al what goes on in the Agency. Congress he said knows very Little about inc ii is supposed to be Over seen by the Senate armed services committee and by a select committee of sen ate elders but the select committee has not even met for several years. Senator Church said the next phase of his sub com to nationals would be a look at the overseas private in vestment corporation which guarantees Ameri can business investments abroad against exp Opria lion. Opic had guaranteed itt s investment in Chile to the tune of about million and the company used this As an argument for the american govern input s getting involved in saving itt s investment by preventing the election of leftist Salvador Allende. Senator Church has indicated previously he thought Opic should be re viewed anyway to determine whether it is in the . Taxpayer s interest to guar Antee business investment abroad. The committee s Bear Ings earlier this year Dis closed that in 1070 itt offered the Cia a substantial fund to support or. Al Londe s conservative oppo nent in the election. This was i ironed Down. 1073 copyright Christian science publishing society ;