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Barrie store in 63rd ear Dry goods have always been part of Woolworths tradition and still are Measuring devices have changed somewhat over the years DearSir DearO gains is lost also taxed on favourable my Registered Retirement Iy above $20000 into self common stocks Would this be good idea Reader wants benefits Now computer measuring device takes cloth measurement replacing the yardstick Vicki Howard waits for her goods as clerk June Seeger tallies the bill Examiner Photo from market wakeup now believe that the North American stock markets will finally wake up from their prolonged hibernation In order to capitalize on the dramatic increases in stock prices that envision for the next 10 years am considering transferring aviiigs Plan proceeds current adniinistercd plan to invest in Registered Retirement Savings Plans offer significant ad vantages for long term tax sheltered accumulation of capital Common stock ownership particularly of Canadian companies also has significant tax advantages However these advantages are given up when the common stocks are owned in Registered Retirement Savings Plan When common stocks are owned directly only one half of any capital gains on sale of the stock is taxable For exam ple if you purchase stock for $100 and sell it for $200 only one half of the gain or $50 need be added to your income for tax purposes If thestocks were owned within Registered Rretirement plan no tax would be paid on the profit at time of sale but the capital gain would increase the value of the plan and all benefits paid from the plan are subject to iii come tax Therefore the favourable tax treatment of capital Dividend income received from Canadian companies basis The dividend tax credit results in the taxpayer being credited with portion of thc corporate incomc tax paid by the company Without going into detail of the calculation of this tax credit you can approximate the tax rate on dividends from eligible Canadian companies by subtracting 54 per cent froin one and one half times your marginal tax rate In other words if you pay 46 per cent on your last dollar carncd tax able income in excess of $350ioi your tax rate on dividends would be lSper cent ottix 3134 Again dividends carnixl in RS will eventually be subject to full income tax You should also consider that you can not buy stocks on margin tliOlIliWHI moncyi within aii RRSl Also you must limit to to per cent the portion of assets invested iii foreign securities This significantly limits the amount of money winch could be directed to ll stocks which would appear to have more appreciation potcnr tial than Canadian The advantages of theft RS route are that the taxation on the capital gains and dividends are deferred until you withdraw the proceeds pixssibly over period of years at retirement wouldnt view the purchase of common stocks and an RR SI as an eitherror transaction You might consider splitting your savings dollar between your stockbroker and your RR SP With long term interest rates at current high rates you can lock in over 10 per cent intcrcst for five years for your RR plan Banker steers company to new greater heights MONTREAL tCPi Until he was talked into it by an iii vestment banker Normand Ri card had no intention of taking over furniture firm grossing $14 million year last June But Ricard 32 agreed to the purchase and later added other firms to his furnitureholding company making him the larg est furniture manufacturer in Quebec and in the top 15 in Canada At the time the TroisrRiv ieres Que native had just boosted his Somrnex Inc family company into firm with $34 million in annual sales Oil executive in 1977 from $50000tia ycar concern four yea rs earlier By 197tt sales for Norca Man agement his holding company for six furniture manufacturing firms were $204 million The companies make cvcrything from folding chairs to luxury items like $1500 hydraulically adjustable beds The key to rapid growth was deal last June to buy Vilas Furniture Co Ltd from The Molson Companies Ltd IIAILIMITEDSTRENGTH Bernard Iellicr viccprcsiy dent of recnshields Inc Montreal investment banker representing Molsoii met Ri card when the latter came look ing for 3500000 for expansion Rut Somnicx Icspitc its growth had limited financial strength looked at his balance sheet and saw that it was inipos siblc Icllicr said Still he was impressed by Hi card Minutes after refusing him the $500000 lcllicr pro posed Slitmillion acquisition Thc eventual Vilas sales price was closcrto$iti million Vilas was the only company in the Norca group showing serious loss when it was ac qiiircd and it now is breaking even Ricard said the transfor mation was simple Vilas had gross profit that was beau tiful but it was being straii glcd by uncontrolch factory and administrative costs In four months as owner he cut head office staff to 22 from 33 and gave the new smaller staff rcsponsihility for over seeing numbcr of his other operations Salaries have been slashed by $5M000 year and factory operating costs have dropped to 24 per cent of sales from 42 per cent Sales are expected to rise to $20 million this year from $14 million in 1978 Market expansion called for EDMONTON CF Oil cxlt ecutivc William Daniel said Wednesday even an expanded Canadian market for natural gas would use little of the sur plus gas in Western Canada and displace only small volumes of imported crude oil The president and chief exec utive officer of Shell Canada Ltd said Canadian markets should be expanded but he also advocated selling more gas to the United States which would absorb surplus supplies and also bring in more money to en able companies to increase ex ploration In speech to the Edmonton Chamber of Commerce Daniel called for additional exports of gas to the US for five to six years This will allow the National Energy Board the flexibility to adjust exports in the light of changing supplyspecifically to terminate contracts or disallow further such exports if exploration results turn down Daniel said higher exports would mean more revenues to governments an improved bal ance of payments and greater economic actiVity within Can ada He said the expansion of the Canadian market should be first priority It could be done by expanding the markets for gas in areas now served by pipeline systems and extension of pipelines eastward from Montreal EXTEND MARKETS We believe that gas markets should be extended to include such areas Quebec City if and when this becomes eco nomic he said But pipc line to the Maritimes would need substantial monetary sup port and should be seriously questioned Daniel said these measures would not displace substantial volumes of costly imported crude oil into Eastern Canada as some have suggested The fact is that most of the fuel displaced would be heavy fuel oil used mainly by iii dustry In any event he said the amount of additional gas used bu ness notes in an expanded Canadian mar kct would be about four per cent of the total Canadian mar ket and only about l5 per cent of the anticipated available sur plus Text of his speech was rc leased prior to dclivcry Norcen buys assets TORONTO tCPi Norcen Energy Resources Ltd of Toronto says it has agreed to buy the Canadian assets of Miami Oil Irixluccrs Inc of Reno Nev for $265 million US subject to 273pcrccnt overriding royalty to Miami Oil The assets include intere sts in about 112 natural gas wells and in 275000 acres of exploration rights in petroleum and natural gas all in Alberta Pop Shoppes signs Irish deal TORONTO tCl Pop Shoppes International of Toronto has announced that its subsidiary the Double ola C0 has signed Richard Nash and Co Ltd as the first franchise for the sale of Double Cola in Ireland Nash and is located in Newcastle West Limeric By DENNIS LANTIIIER Of The Examiner Woolworth Ltd is celebrating its 100th anniver sary in Canada and its 63rd anA niversary in Barrie The first Woolworths store in Barrie was officially opened on Nov 11 1916 says Ken Firth store manager in Barrie At the time the store located on Dunlop Street was variety store says Firth In 1962 the store moved to Bayficld Street and grew in size from almost 8000 square feet to total of 63000 square feet The Barrie store had significance back then he says It was the first Woolworths store that was not variety type store he said MODEL STORE It served as model for other stores of the larger size to spr ing up throughout North America says Firth In May of 1967 the Barrie store expanded once again to about double its size says Firth The expansion came at the back of the store and underground parking was also added he says The Woolworths store is vital part of the downtown ini provcmcnt project says Millet Salter project developer The project was designed around the Wixilworths store to emphasize the importance of it to downtown says Salter OMPRISES WOOLCO In Canada the Woolworth company comprises 100 Woolco department stores and 210 Woolworth department and variety stores Sales in 1977 were $1125 million making it one of the top four department store opera tions in the country There have been Woolworth operations in Canada since 1897 Throughout its history the Canadian compain has been managed and staffed by Cana dians Eightyrfivc per cent of all purchasing is done from Canadian sources small store in Lancaster Ia was the seed for what became the worlds first five andrtcn an American concep tioii and that has endured through the decades and established Frank Winfield Woolworth as one of thc rcvolu tionary and dominant forces in retailing both here and abroad see you have Woolics herein the United States also surprised Englishmen arc known to comment on visits to this country There are similar reactions from German Spaniards Mexicans West In dians Scotsmen and Irish upon discovering common bond Wmlworth between their lands and North America Being part of common in ternational language the name Woolworth has drawing power that extends beyond the companys various shores of operations For example there are no Woolworth stores in Japan or the Middle East but the companys outlets in Honolulu and San Francisco throng with Japanese tourists while its London or New York stores cater to oilrrich Arabians aware of Woolworths worldwide reputation as mecca for bargains ROOIEI IN TRADITION The Woolworth company at 100 while drastically different from what it was even up until the postWorld War II years is Very much rooted in traditions that developed during our for mative years not xl Edward Gibbons chairin and chief executive officer Since the days of Frank Woolwroth for example the company Iias always placed extreme imv portance on its relationships with suppliers It was the great rapport that Woolworth himself developed with his mcrchan disc sources that is possibly one of the major keys to our contir nuing success This is acknowledged in the early history of Woolworth Soon after establishing his first store in Lancaster Woolworth realized that his chief challenge was to find wide variety of goods which could be rctailcd at and 10 cents Rut retailing at the turn of the century had to contend with jobbers or mid dlemen because manufac turers did deal directly with merchants To keep his wholesale costs down and ultimately the shelf price of his merchandise Woolworth was determined to break through such barriers He did so by con vicing manufacturers that by working directly with him they would be able to do bigger and more profitable business The dynamics of growth for Woolworth was evident early in his career competitive suc7 cessful sales of audiocent merchandise required buying an enormous variety of goods in large quantities And many manufacturers who at first were reluctant to deal directly with him were eventually won over and became multi millionaries as nearexclusive suppliers to the Woolworth chain chain of stores was inevitable for the survival of Woolworth concepts Early in his career he recognized that to speedin sell the enormous quantities of goods needed by and lttcent pricing required rapid expansion in the number of appropriately busy locations Robert Harris the com panys current president and its first chief operating officer notes Woolworth maintained elaborate wall charts that revealed how towns and cities were fuunding And he expand ed accordingly utilizing even then the type of demographic data that today still determines the general thrust and scope of our expansion efforts QlALITATIVE EXPANSION Ilarris added As we move into our second century expanr sion remains key element in our growth but it is expansion that takes on qualitative as well as quantitativc meaning We are not simply opening stores in randomlypicked areas of new population growth Emphasis today is upon total market penetration where the economics of modernday retailing dictati clusters of Woolco stores our discount operations in given major population centres on one hand and in establishing large dominant fully merchandised Woolworth stores serving secondary markets as represented in smalltomedium sized com munitics on the other The contemporary thrust of the company also sees urban centre Woolworth stores being upgraded and modernized As Harris points out Weve always been associated with downtown shopping areas But we havent abandoned the inner cities although wcrc definitely represented in suburbia as well These inncrrcity programs also mirror the companys purr suit of qualitative growth Wcvc adopted our inner city merchandising programs to adapt to thc StKItrtCtillOllllC comptcxtons of the various ncighborhoods where wc operate Harris said Thc same is true in the suburban and secondary iiiarkcl areas In this regard thc company is perfecting what can be con sidcrcd its tailored approach to Wmlworth storc mcrchan dising STORES TAILORED Woolworth store in 1971 no longer fits set prototyiw Harris pointed out In one lll stancc it might be your typical relatively small neighborhood outlct But even then its distinctively different from those of the past Today such stores are selectively merchan discd to reflect the taste and preferences of shoppers Apart ment dwellers in large downtown areas represen ting young childless couples and singles for the most part now shop in nearby Woolworth thats geared specifically to their lffc styles In many ways this differs con siderably in terms of mcrchan disc offcred at nearby Woolworth in the citys business area where the to office worker is the primary customer As further distinction stores in oldcr ncighimrhoixls the oxamlner Friday Mar 1979 are stocked with selections ap pealing to still broader base of customers where senior citizens in particular are catered to Theres no comparison in terms of merchandise depth and breadth between small but viable neighborhood Woolworth and one of our larger outlets in huge suburban shopping mall Har ris notes But while these suburban stores can feature everything up to large appliances fur niture and color television c0n soles as well as complete automotive service centres in some instances Woolworth hasnt overlooked basic ap peal its stores have enjoyed through the years And here lies common denominator bet ween all of its stores We havent forgotten the basics of the Woolworth ap proach to retailing said Har ris This means supplying varietytype goods but today with still wider selections Our customers expect this Studies show that shopping mall customers make their demands known for Woolworthtype store where none exist in cen tre Qualitative expansion for Woolworth has also seen diver sification moves that have greatly increased its broad customer base Woolworths have moved from nickel and dime store novelties and needs into everything from stereo appliances Donna Hoffman name brands and house brands Examiner Photo Anothgr look World War III quipment and sporting goods to household Barrie looks at stove The stores stock My IOIiIS IRIIIINWOOI According to Brian Crozier of the Institute for the Study of Conflict headquarterixl in Britain World War III started in 1945 and is still going on It is war of Russian subversion against the West which Crozicr calls the Target Area The weapons are propaganda infiltration terrorism the choking of energy sources by such strategies as the Arab oil embargo subversion causing such self inflicted wounds as the weakening of our security agencies in over reaction to Watergate and so on Two oi the most powerful weapons Russia employs against the West Crozicr says are business and labor ours that is not Russias PROXY FORCES Whenever actual military attack by Russia is carried out since Ii Army tanks rolled into Ilungaryi it is generally done by what Crozicr calls proxy forces The Cuban forces in Africa for example Its impossible here to reprixlucc the awesome urgency of Croziers detailed analysis of the Communist weaponry employed against the Wcst The weapons he talks of can be deadlicr than guns and bombs Angola for example helps to show clearly how Russias World War III weapons work In that now Marxist African nation help from the CIA was on the way for nonMarxist movements Rut funds for that help because of the propagandagencrated post Watcrgate hysteria against the CIA were blocked by the US Senate Foreign Relations Committee This allowed the Russians and the Cubans to complete their massive arms buildup almost without challenge And incredibly while this was going on President Ford assured the Russians that no matter what they did in Angola there would be no holdup of American grain shipments to Russia That Russia is extremely vulnerable in this third world war is explained by Crozicr in his book Strategy of Survival Never he states has Russia been able to maintain its power without massive assistance from the West And now in cidcntally China is getting on the gravytrain Technology machinctools production techniques engineering hardware SOleISIICtlItd scientific processes grain and huge financial loans have all been readily for thcoming from the West For some reason businessmen have always been more than ready to supply Russia with all the things that country wants with which to bury us As Crozicr points out Lenin himself said Russia would even tually hang the capitalists with ropc which they themselves had provided might add that this column has also suggested that doing business with the Communists is war crime as called it then Maybe it is closer to treason NOT ONLY BUSINESS Its not only business however that is guilty of giving aid and assistance to Russia Trailc unions have long started in 45 overstepped their legitimate bounds of collective bargaining for the benefit and welfare of their members Trade unions have now been in many cases subverted by Marxists especially in Britain and Italy According to other observers some Canadian unions are similarly infiltrated Trade unionism then becomes another weapon whereby the real motive for striking for example is to cause industrial strife and exert raw political power What one wonders would be the fate of large corporation that announcul it was going to stop production to enforce political dcmand To counteract such union subversion rozier suggests that political strikes be outlawed Also he believes the elecs tion of union executives should be by secret postal ballot Strike votes should also he by secret ballot Strikes in essen tial services such as communication health water supplies lucid and food supplies should be banned There should be no public relief for strikers and their families and the closed shop should be declared SEtlRIl The current objection to telephone tapping by security forces should also be tempered with realization of the danger the West faces from Russian subversion Such bugg ing is allpervasive in Russia Crozicr points out Although it is held to be an intolerable infringement on our iiiherant right of privacy no security system can be ful ly effective without it If Crozier asserts it is conceded that theState in open societies has the right to defend itself then its right subject to safeguards to tap selected tclcphoncs and take other measures of that kind must also be admitted So far as such measures being illiberal they are con sidered to be so only because the consequences of not allow ing them havent been grasped Internal subversion is threat to our liberties he says If unchecked it can lead only to totalitarian rule And in this war without bombs the ultimate damage to our way of life and its replacement with totally alien sup pression as happened in Czechoslovakia would be far worse than bomb rubble World War III can still be won but only if the weapons being used against us are recognized and an immediate strong strategy of survival is undertaken The alternative is slavery Crozier concludes If no such action is taken by us and especially the US tand theres not the least sign that Jimmy Carter is about to take it then wed all better get used to eventually living six toaeroom lining up an hour day to buy bread and requir ing police permission to leave town for even brief trio as in Russia Plus such as myself suppose being prepared to die as dissident in Yukon concentration camp If youre liblcft politician of course youve got it made Oh how scary it is to be modern Cassandra