Winnipeg Free Press

Winnipeg Free Press (Newspaper) - November 15, 1975, Winnipeg, Manitoba Winnipeg press saturday Imber 15, sask. Potash takeover will hinder future investment t say top firms mills9 . Aid Bill slave manlike move by Paul Gessell Montre Al up Twenty nine out of 30 leading Canadian and american corporations agreed Here that Saskatchewan s proxy sed takeover of the provincial Potash Industry will negatively influence any future invest ment they have made in Saskatchewan and Canada said Samuel Hughes executive director of the Canadian chamber of Commerce. In a Telephone interview from Quebec City or. Hughes said the 30 Compa Nies attending a joint meet ing of the Canadian and american Chambers of Coin m e r c a represented la Creme de is Creme of corporations in the two coun tries. Some of the 30 which participated in the Voie 1 to. I to 11 View he Massey Fergus ii Ltd., Canadian industries Ltd., Gulf ii Canada lid., up rail. Ism and Rubin Hood s Ltd. If the Saskatchewan meet Yuuki be Able to run the the largest 111 the belief than the private sector. It would depend upon How much of the Industry the gov c r n m e n t nationalized he the Only Loui Paay which did not indicate that Premier Allan Blakeney s announce ment would change in vestment decisions was 1101 plan Uig on future invest ment Uii Way or. Hughes said. Or. Blakeney has dam aged his own province and the whole said i. Hughes a former financial advisor to tie government of Saskatchewan or. Hughes was Uncertain or. Blakeney has estimated the province will spend about billion to take Over All or part of the Industry. Or. Blakeney would have a hard time to raise that or. Hughes said. Some investors will refuse to provide the capital on moral he said. He expected approaching International Money markets for such a Large sum will damage the credit worthiness of Saskatchewan debentures. By Eliot j anew a is always a disposable Itoi. So is any headline maker who has lost his Way in the poli l i c a 1 Junkie. Congressman Wilbur Mills for instance has not been taken seriously As a source of news since he became the butt of Public ridicule. The inside joke Lii political Washington As " Mills Worth the rest of the House leadership this judgment has proved to be at Leasi As much of a forecast As a commentary. On oct. 20, congressman Mills made a speech which reaffirmed h i s legendary reputation for sagacity. He introduced a Bill calculated to break the logjam on the new York bailout Issue. In doing so he demonstrated a statesmanlike regard for the Cross tug Between the conflicting claims of focal re and Hun Augiar Ian can wins taking the Middle Road has always been the Way find a formula that works congressman Mills took it in his statement. The Federal congressman Mills began has taken a solid stance against Federal assistance and i believe justifiably so. In order to com Pel new York City officials to attempt to place their House in order. It will profit new York City or the nation he explained if fed eral assistance were Only to forestall the inevitable de Mise of that City s financial Structure. Federal assistance would be tantamount to pour ing Gas on a raging at the same he added and. I believe justifiably so the City of new York Lias contended that its present financial position is so precarious that without Federal assistance there will be no Way of res t o r i a g financial solvency Short of bankruptcy the impending financial collapse of new York City sends a Ripple of distress throughout the financial structures of the nation from new York to los Angeles. Once a major City is allowed to default on its obligations every local government s debt obligations will become suspect to the investor and interest rates followed by x taxes to finance those rates will the Middle Road that Mills proposed would provide Emerald and Diamond Reg Sale 123.75 m Sapphire Reg. Sate 60.75 v -v.si. -r5.195 Sapphire Ruby and Diamond Reg is 45 sate Reg Sale., 108.75 res is Gold during our and precious a8 in 14k Gold settings our most popular rings Sjo a. 4 regular Stock. For fusion for Christmas or -r5163 amethyst and Diamond Reg. Sale 99.75 much you care. These h and dinner rings Are a by at their regular prices when every Penny does they Are especially super. Regular to the say jewellery def. 231 a findable formula for help new York and other local governments on the sick list but it would also protect the Federal govern ment with substantial Colla teral for the risk of Guaran teeing the financial flexibility needed Over a sustained period to come in grips with the economic mess which has been allowed to develop. The Mills Bill would extend Revenue sharing Lor an additional four years not just for one and divert Money from the states for direct funding to cities certified by the Secretary of the trea sury for the critical list. Mills knows the his code inside out All he wrote it. Under Section 103, As amended in 1954, his propos Al would allow a unit of local government to Issue tax exempt Bonds eligible for guar Antee As to principal by the Federal government and for guarantee by a state govern ment or Agency As to inter est. This proposal would limit obligations eligible for such guarantee to less than the total amount of ing funds in the budgetary pipeline. Maturities would geared to annual allotments. The tax exempts issued would always be Colla to realized by Revenue sharing funds coming. Congressman Mills and Secretary of the Treasury Simon share a healthy re Spect for each other s Vir tues cities. Congressman Mills knows that Simon has a More practical feel for the Workings of markets than any Public Man since a m i 11 o a s Day. Or. Simon knows that the tragedy which flawed congressman Mills career accentuated a loss not suffered since Clay was distracted by comparable frustrations. Or. Simon s objection to the layering of a new class of tax exempts that Are backed by Federal guarantees but not backed by Cash Colla teral is that it would cause the Treasury to get in its own Way by superimposing a new class of High yielding tax exempts on top of its Reg u 1 a r run of new issues. Under congressman proposal however federally guaranteed tax exempts that would be backed by Cash col lateral and subject 10 the veto of the Secretary of Treasury would be priced in the Market at lower rates than the regular run of trea sury issues. Politics is the Art of Devis ing viable third alternatives to apparent dilemmas. Al though congressman Mills has artfully proposed an alternative t o putting new York on the Dole and to inviting new York City to re turn the compliment to the National credit Structure on Public welfare his proposal has been ignored. Mean while thinking better suited to the antics of vaudeville has made headlines. Congressman Mills propos Al gives president Ford an Opportunity to Echo Lincoln s famous retort to the critics of Grant let me know what Brand of whisky he drinks and 1 will Send a Case to each of my Gener passenger train subsidies hit -r5081 -r5181 Ruby Cluster amethyst and Diamond Reg. Sale Reg. Sale 70.50 75.75 Windsor out. Up Paul e. Martin president of Canada steamship lanes said Here Canada s passenger trains should be allowed to die a natural or. Martin whose firm operates fleets of buses and trucks in addition to ships said the Federal government s policy in propping up rail Pas Senger transportation with Large subsidies is ludicrous. He told an Energy Outlook seminar sponsored by the Windsor chamber of com that Federal subsidies to passenger trains total million a year and by 1980 will climb to about Mil lion a year. As Well he said the government by placing ceilings on railway rates effectively puts a freeze on All transportation rates since obviously no other Mode can significantly exceed the rail rates and Hope to statistics show the bus is a in Ore efficient Means of transportation than the train in relation to passengers car ried and fuel consumption he said the dominance of rail in government planning m r Martin said has retarded the growth of other forms of transportation. He also discussed Canada s Economy saying business and labor must break out of the confines of an outmoded adversary system or society will slide under stricter government control ending in totalitarianism. He urged voluntary rational planning by business labor and government in the Alloca Tion of Canada s resources and energies because of chronic shortages Ball Basic resources in the world. Economist sees curbs having Little effect -r5179 Smokey Quartz Reg. Sale Toronto up Federal real increase in the . Wage and Price controls will Gross National product Opal double Teg Safe Oftel and Diamond Reg Sale -r252 zir5172 amethyst and Pearl and Diamond Keg. Sale Reg 146.25 183.75 a of today Guster Reg see Reg. Sale 5. Ftp 078 a Cluster Emerald Cluster Reg. It 20. Sale it to r a use your Bay makes shopping a whole Kef easier. Downtown shop Mon. To Fri. To sat. To 6. Tele buy 783-2112. Uni Eity shop Mon. To sat to 9 Tele buy 783-2112. 30 have Little effect on inflation wages or profits a coffer ence on investment strategy in Canada was told Here. John Grant chief economist for Wood Gundy Ltd., said his firm has not changed its forecast of the Economy next year because of the controls. Prior to the introduction of controls his company love cast a 1976 inflation rate of 10 per cent and still holds to that View he told the Confer ence sponsored by the financial Post. There Are too Many lag Ging prices in major areas including Oil Gas and insurance that have yet to Rise he said and these increases will be permitted under the anti inflation guidelines. Even with the guidelines or. Grant predicted that wages will grow by an 11 or 12-per-cent average next year which corresponds to the average of recent years. The fact that the guidelines will control increases in prof. It margins percentage of net profits to sales Means Little lie said because profit margins will fall anyhow next year. However he forecast that mainly because of inflation absolute profits should Rise an average of 12 or 13 per cent in 1976. Or. Grant said one encouraging aspect is that the government is not relying on control s to improve the econ omy but on and Mone tary politics including a reduction in the Money Supply and an a empt to limit government spending. The Cut in the growth of the Money Supply will result in higher snort term interest rates he said forecasting a prime Bank rate of 10 per cent and a conventional mortgage rate of 2vi Jet cent by the end of this year. However he is optimistic rates will drop somewhat in j97g. Guy Noyes. Senior vice president Ecol Nomis with Gnu the total of All z goods and services produced of about seven per cent. Or. Grant predicted about a increase for can Ada profits will Rise about 2. Per cent in 1976 Over 1975 earnings lie said with first Quarter earnings next year of possibly up 40 per cent Over the first Quarter of this year. J Rodney Donald executive director of s. G. Warburg w and co. Of London forecast a real growth rate in Western Europe and Japan of three per cent in 1976 compared with a drop of two per cent this year. Inflation should be about nine or 10 per cent he said compared with 10 to 12 per cent this year. 46% 0 Ottawa tuners sales in september to talled billion Down -1.u per caul from s7.327 Billiou August. Statistics Canada re ported Here. Salci of durable goods such As automobiles and a i Isaccs. Totalled 53.160 Bil lion. 5.3 per cent from billion in August. Non durable goods totalled billion Down 1.2 Ner from s3.877 billion. The figures Are adjusted to account for seasonal Varia Tion. On an actual basis sales for nil manufacturers in the first Rinc months of the Vear totalled 5g3.251 billion up 5.3 per cent from for the corresponding period Jast year sales were up in ail except British Colombia where they Organ guaranty twist co. Dropped by six tenths of one York a percent ;