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Are funds good choice By RALPH ALEXANDER Dear Sir have noticed that several il rid Gas Exploration liunds have been underwritten this year As understand there are Significant taxation advantages to these funds wonder if they represent good investment for highly taxed profes sional such as myself Dear There are indeed significant tax advantages to investment in Oil and Gas Exploration Funds However despite these advantages the potential for your even breaking even on this investment are similar to your chances of breaking even on the purchase of lottery ticketst that is poor Most of these funds will provide the investor with tax deduction of about 100 per cent of his investment Due to specral incentives for frontier exploration some funds may provide tax deduction of up to 16633 per cent of your investment but the chances of satisfactory exploration rtsults are much less promising It is important to remember with any tax shelter scheme that tax deductibility only saves you the portion that would normally be paid in income tax The balance represents your real investment and if you dont get that portion back from the investment you have lost real money despite any tax advantages In addition money returned from these funds will usually represent taxable income An example might illustrate this You dont say how heavily taxed you are but lets assume you pay 52 per cent tax on your last dollar earned meaning taxable income over$36500t If you invest $10000 in an exploration fund you might get tax deduction of $10000 for exploration in developed areas or $16607 in frontier areas Based on $10000 deduction your after tax investment is $4800 and on $16607 deduction your after tax investment is $1333 To the extent that you dont get return of this money plus substantial profit to compensate you for taking risk the investment will have been failure In my view you are unlikely to get sufficient return from the fund tojustify the significant risk involved The first major risk involved in the funds is that in all pro bability the drilling will not discover oil or gas in sufficient quantity to warrant developriierit The second major risk is that your fund will make significant discovery biit will be unable to market the output at price high enough to cover the costs of production plus produce profit To understand why this may occur one must look briefly if possible at the politics involved in energy in Canada and the US Firstly the socalled energy crisis is creation of the politicians and there is not now or likely ever to be short tage of oil and gas or appropriate substitutest Any ap parent shortages in the US are distributional problems which are caused by irrational price controls In Canada we no longer have even the appearance of slior tages but very real surplus As approval of export of this surplus would mean admitting to the Canadian public that we are not in serious danger of running out of gas and oil in the 1980s the myth of an energy crisis must be maintained in order to continue the rape of the energy consumer in Canada If it werent for the publics naive willingness to conserve energy in the face of this crisis there is no way that the federal and provincial governments could continue to grab 60 cents out of the price paid for each gallon of gasoline If the full 95 cents gallon paid for gasoline were used to pay for the production and distribution of gasoline we would be swimming in oil If you accept that there is no real energv crisis you cant believe that even with tax incentives it will be worthwhile investing in the search for oil and gas in frontier areas far away from the necessary facilities for transportation of the production to refineries In siriiiniary unless you cant overcome the urge to gain ble avoid these funds Holiday Inn opens new facilities after three years of planning By LESLEY LUFF if The Examiner The Planters Dinirigroom and Woodys Lounge have just opened at the Holiday air in Barrie After three yea rs of planning the inn has given its dining and entertainment facilities new look and theme to help NEW YORK tAPi Mort gages designed to help first time horiiebuycrs or elderly persons who want to benefit from equity in their house can be offered next year by most US savings and loan institutions But you could use up lot of shoe leather looking for such deals The federal home loan bank board this week issued regulations which will allow federallychartered savings and loan institutions to offer graduatcdpaymerit and reverse mortgages across most of the country The graduated payment mortgagc is designed primarily for young homcbuyeis who pay less now and more later The pre suiiiptiori is that their income will be higher in the future It Ls now offered almost cxr clusivcly through govern nicntbackcd loan program which is expected to con tinue llllStltlBlCSStlllIMlC To illustrate how this works home buyer with Saloon mortgage at of per till over 30 years would make monthly payiricnts of $120 under the standard New mortgage plan firsttime buyers The Planters Diningroom so named because of the hanging plants which give feeling of warm summer day is decorated in white with latice work and even gazebo to com plete the theme of summer John Clarke innkeepcr said the dining room is intended to attract families and tourists mortgage That of course does not include payments on property taxes But with graduated system the initial payments would be lowered to $318 month in the first year then gradually in creased By the fifth year however riioiitlily payments would be $457 month higher than those under the conventional sys tem and those higher rates would continue through the ncmaining is years Rut the graduated method could cost you more over the life of the mortgage than you would have paid in interest on conventional housing loan The reason is that you are not paying back thc principal as quickly undcr the graduated system liven riiore experimental and without any government backed program is thc rcvcrsc mort gage authorized by the ncyi regulations irin two savings banks one in loi tlaiid Me and the other in Cleveland are cx pcrinicnting with llllS typc llousing experts say lot of legal angles iiccd to bc cxaiiiincd bclorc thcy cxpcct widespread offcrs The menu includes childrens prices Every Sunday the dining room has brunch menu which includes the standard fare of eggs and bacon plus hot beef cold meat platter and salads special feature will be the pan cake cart which will make fresh pancakes on the spot special The reverse riiortgagc is designed for an eldcrlv person who already owns borne but wants to benefit from the equity in it without having to sell and move Under variety of schemcs including an annuity plan much like life insurance payments the owncr might receive cash from the bank in effect the rcvcrsc of usual mortgage payments ALSO MADE NEWS In other business dcvclop merits this week lrcsidcrit artcifi riiodificd his voluntary wagc and price guidelines to allow riiorc liberal treatment of fringe benefits in thc scvcii percent wagc guideline and somewhat tightcr treat ment of standards on cor poratc profits lastern Airtiiics pimped into the bidding for National Airlincs joining laii iiicrican and Texas in ternaiional as suitors of thc Miami based airliiic All three are pctitioning the ivil Aeronautics Hoard for permission to acquire National iii the wakc of shifting rulcs brought about by the industrys deregulation Businessman hos confidence in Quebec as he expands broadcasting business QUEBEC CP Jean Pon hot is Canadian television pio neer who has parlayed career as an electrical engineering re searcher into multimillion dollar broadcasting business His latest venture is the $26 million purchase of Montreals Multiple Access Ltd operator of FLF the citys lucrative No EnglisblanguagcI star tion have confidence in the fir turc of anada and thc province of Quebec says Pouliot Sfryearold Quebec ity native As for the effects anadris Market should grow real estate firm says ItiRtiNTO CPI Canadas real estate market both com mercial and residential will show continued growth in 1979 the chief executive of the coun trys largest real estate firm predicted Thursday Gordon Gray chairman and president of AP Lelage Ltd said the strongest growth will MCMllJJIN General Tire announces changes be in algary and Edmonton spurred by the current oil boom while Vancouver and Montreal will expcricnce slight upturn Growth in other cciitrcs such as Toronto Ottawa Quebec Tity Regina Winnipeg and Saskatoon will not be as strong political cvoliition could have on his investment loiiliot cx plairicd iii an Itllttit The English community in Mon trcal will always exist and they need strong voicc in the community And said strong tiltt not loud one he adds Although lorihot describes llllllStli as an rinhyphciiatcd aiiadiaii hc proudly iiotcs that he was the first lranco phone president of thc anadiziii Association of Broadcasters and held thc same post with Broadcast News Ltd the radio and television news scrvicc of aiiadzis co opcrativc llSrgilllltlllIL agency llicfanadian lrcss To realize tlic Multiplc Ac ccss deal howcvcr loiiliot needs approval from the anadian Radiotclevision and lclccommuniczitions om riiissioii itRlti which carlicr this ycar blocked salc of thc tl station to loronto brixidcasteroliiiltassctt The present llllltilil share holder Maiiivciit ominir nicatioiis ltd controlled by mcmbers of thc Rionfnian lain ily has accepted loiiliots offer of Sit 30 share for its Fit pcrcciit iiitcrcst about Slit ii million loriliot says he is con fidciit that holders of other shares also will accept lllS offci bringing the total purchase pricc toribout $20 iriillioii tassctt had offered $0 share about 51 more than the stock cxchangc pricc loiiliot began lllS working ca rccr aftcr graduating iii clec trical criginccring iii tittfi trorii Laval tnivcrsity hcrc as re searcher for thc Royal Signal torps in Ottawa After stint as siiiwrintciidcnt of thc anrr WiltilllllltN lllltlttlllS If AMllllIlrlr in senior management positions Changes in senior management positions at the Barrie branch of General Tire and Rubber Company Ltd were an nounced by Robert Thompson president General Tire recently bought Mansfield Ienman General Com pany onJohnStreet Alvin McMullen has been appointed vice president technical resource planning Tire Division In this new position McMullen will be responsible for developing the com panys investment plans for plant and equipment modernization Gerald Woodburn has been appointed vice president marketing tire division In this posi tion Woodburn will have expanded responsibility for marketing of both MDG and General lire products in all markets Joseph Borrows has been appointed manager employee relations with responsibilities for leadership and guidance on personnel practices union relations and related activities Bruce Campbell has been appointed manager manufacturing tire division In this position Campbell will continue to have responsibility for the manufacture of all the companys tire pro ucts Raymond Patterson has been appointed manager finance In this position Patterson will have expanded financial responsibilities and which will include all of the companys opera tions Andrew Hamilton has been appointed manager technical department tire division In this posi tion Hamilton will con tinue to be responsible for the design and development of the corn panys tire products The General Tire and Rubber Company of Canada operates chain of retail stores and warehouses across the country In addition the company owns and operates an Industrial Products Division in Welland which manufactures molded and extruded rubber components diari navy clcctrical laboratory louliot Jtllllttl Famous Players thc cinema company ltathcr than fight the arrival of tclcvisioii as thcatrc drains did in thc United States Famous Players in anadri de cidcd to gct into loiiliot recalls As the companys cxcciitivc engineer hc attciiiptcd to start station Ill 1010 bctorc tlic advent of thc trinridiriri Broad casting torp lhcn iii 1033 he worked it illi Famous Players to open Ktt television in Kitcb cncr int and FtM television lll Qiicbcc ity He became iiiriiiagcr of the Quebec ity station which also operates KMI thc English language affiliate of in thc provincial capital in 1937 and acquired shares two years later whcn Famous Players with drcw IAlllIISUN NI lt lIW IlAMlIIt Brunch prices arc $475 for adults rid $250 for children Weekday evenings to Satur day thcrc is buffet complete with seafood platter for$750 Sunday night is reserved for ribs and fried chicken Roth cost $550 for adults and $250 for children and that includes the salad bar potatoes dessert and beverage lhc salad bar which is includ ed in all dinner prices provides choice of 22 items As meal in itself it is$150 Woodys Lounge is designcd to appeal to the over 25 crowd Clarke said We re aiming at the lunch and cocktail crowd The live entertainment will be uptempo but taped disco music will be provided through the $4000 sound system between sets for thosc wishing todance For the lunch crowd sand wich menu which includes lxrrbecued chicken on bun with french french fries for $250 or Holiday club sand wich at $350 At five the oyster bar opens offering patrons oysters or stcamcd clams ratticr noch food and drink combination is Mary and the Roys which is bloody rriary with three big shrimps dont think youll find anywlicrc else in the county with qiiitc thc same at mosphcre or appeal as withci our dining room or lourigc of fcrs lziikc said in contrast with the outdoor feel of the dining room tht lounge offcrs warm soft comfortable iccliiig tlarkr said lhc chairs soil and well pad led and for more iiitiiiiati coiiilort thcrc is section of love scat and tables along lllt windows largc gas fiicllct fircplrice on oiic wall piovidc bent and ritiiiosplicrc Cooke celebrates anniversary Les Cooke has been in business in Barrie for 40 years Cooke Cartoge and Storage Ltd recent ly celebrated its 40th anniversary with party held at Collier Street United Church The business started as family operation in l938 and moved to its pre sent location on Anne Street in l958 The com pany started with one truck says Cooke Now the firm operates 80 truck units and must be one of the largest corn ponies in our field he says Examiner Photo CoOp cant forget its roots president tells delegates ltRElti Staff lhr t7nitcd opcrativcs of ariada must bc competitive in business today but it cannot forget it roots Robert oulthard ttti prcsidcnt said this wcck Addressing morc than 400 delegates at lttis 31st annual meeting at the Royal York Hotel oulthard said the ttti must be able to offer goods and services to be competitive but it must meet thc needs of its in llVltlllrll iiiciiibcrs tiiitcd ootxrritivcs of in tario is owncd by riiorc thrir Jr1000 individiual members and 33 member co operatives across tlic provincc lion taplari ttti informa tion and publications manager said the individual member iviiiicipation in thc business is the main difference bctwccr titt and other companies with shareholders The difference is the members tt7i havc say in the type of goods and services provided through local branch councils and rcprcscntatiori on higher lcvcls he said lhc coop members share in thc financial benefits of the mmpaiiy said aplan Ltt sells farrri supplies in cliidiiig feed seed fertilizer hardware and petroleum through tttil outltts across tiiitario and it markets grain livestock and poultry Toulthard listed seicral ini provcrnents in services and facilities this year At lit iuclph Feed plant the newly built laboratory processed inorc than 10000 forage and feed samples to check on dairy and beef feed quality lie also mentioned the ac quisition of fertilizer storage and production facilities and an increased efficiency in the Tend icsh pro ccssing and nrarkcting opera tions Julian Smith ICf chief ex ecutive officer reported the company has irriprovcd its grain marketing program and has started to build large grain terminal elevator at Windsor The new elevator ill hold 27 rriillioii bushels of grain and it is expected to be operating by spring 1979 said Smith One of the major expen diturcs by It this year was the construction of the new farrri supply storc iii tirillia said apla 51s fig $$8i¥$8¥fifl sunset3 I55 322 iroaaaasei meanness Wins Dominion Store contest Tommy Wright i7 is the happy owner of microwave oven after winning contest spon sored by Dominion Stores Earlier this year Domi nion gave out book of tickets with every order of $50 or more offering discount prices at the Cona Another look Hy lltll il iltlilIVthtll iii previous coliiiiiiil gave two specific examples of how certain information is officially suppressed cciisoicd IS thc word Wc all of course cling to thc bchcl that govern merits of free nations dont cxcrl ccnsorship on free media or prevent individuals from distributing lllllillllilr tion printed or otlici isc that is neither secret nor libcloiis That really isnt true at all suppression of certain news and views is actually practiscd on broad scalc That we dont have ministry of censorship cxccpt for movies of coursci isjust formality really want to report now how the very safeguards of our ixirliariiciitary piotcctcd freedoms arc usurped With every law that is passed from local bylaws to federal oncs comes anotlicr thread that binds us down like iiillivcr in Lilliput That is why wc have an official opposition in parliament by thorough dcbatc we try to ciisiirc that only laws that are necessary and withing lic scope of thc British North America Act are passed It would be impossiblc for in stance for anadiaii govcrnniciit to pass law that would change our political system toa rcpublic or dictatorship because the governor gcncral in his authority as the queens rcpresciitativc would not bc able to sign it into law without breaking his oath of office which would be coming dangerously close to treason ltllllllllltlt the supreme courts are available if law is challenged as being un constitutional Iii anada wc dont actually have written Constitution on our own statute books but nevertheless the historical power of the Magna arta is still iiivokcd by modern lriwycrs wlicii fighting what they bclicvc to be an un just law ur constitution small ci was decided by the DNA that says how our governmciit is constituted ic how itworks lhc Statute of Westminster in 1931 removed all signs of ltllill subordination for Canada It could in effect be regarded as our declaration of indcpciidciicc The Canadian Hill of Rights brought in diiriiigJohii licfciibakcis govern ment is not really constitution It is not cvcii coiisidcrcd to bc necessarily any more legally protective to our lrecdoiiis or rights than would be riicrc statement of intent by the government for the guidance of judges The Hill of Rights furthermore does not apply to the provinces it was never ratified by them although ratified here is more dion National Exhibition included in the book was an entry form for the microwave oven contest which Ms Wright filled out and entered She was presented with her prize Monday by Darryl Bed nis store manager Examiner Photo Canada is free country but the question is how free tTS tcrrii insofar as constitutional ariicridments must be agreed to by state legislatures before becoming cficctivc So in effect anada docs not have onstitution tcapital in the generally lllltltlSlUOd mcaiiiiig of the word My examples of how democratic legislators are sidetrack ed conic actually from the which is considered to bc nioch for free governments everywhere Recently it was rcported by Spotlight Washington ncwspaixr that Senator Lealiy of Vermont assembled in his office two bookcases of cqurd size me of them contained copies of all laws passed by the US ongress since the late 1700s the other was packed with federal rules promulgated by various government agencies in the last lit months if similar exercise were performed in Canada its doubtful if the regulations which all have the force of law behind them could be contained in the same room This is not to make an invidious comparison bctwccn anada and the US it is simply to say that in Canada person for person we have morc regulatory agencies than even the US These agencies all have the power to make regulations that are enforceable to the full extent of the law the end of the line in other words tics imprisonment for anyone who disobcys regulation lhesc interstate regulations come in to force by the mere tlplxillillltt of them in the Federal Register Every month this register lists thousands of such regulations in Canada all sorts of federal regulations become effective by Order intouncil In thetuS Executive Orders of the President are additional to Federal Register regulations In aiiada all the thousands of provincial government agencies have virtually blank check under the enabling legislation that set them up to make whatever rules they like all of which could land you in jail if you persisted in ignoring them And remember the pro vinces are not even bound by the federal Bill of Rights So hows that for usurpation of freedoriis Actually we are only as free as some faceless bureaucrat dccides we should be Fortunately we still have in theory guaranteed by the DNA the protection from unlawful arrest the police cant arrest you unless they charge you with legal ottcnsei and lil private property is protected from government scitire ltuy try expropriation on that one We could all be worse off but not riiucli As imstoii hurchill said Democracy is not the best form of govern ment but its the best of those that exist Just dont let it get any worse please and we can be thaiikfu