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'OR FACE OUTSIDE CONTROL TSE Must Kill Its Image As Gaming-Club: Report RONTO (CP) -- The Tor- Pn Stock Exchange must rid sire to maintain the character hl, of a public securities market,|" commission today branded John Campbeii with improper conduct while he was director of the Ontario Securities Com- i charging him with '"'in- ble" interference «in the ttself of its image as a private gaming club to regain public confidence following the Wind- fall debacle, the royal commis- sion report on Windfall Oils and Mines Ltd. says. 'And if the exchange can't do so, it will have to be put under the control of an outside au- thority, the 177-page report re- leased today by the Ontario) government says. The royal commission, under Mr. Justice Arthur Kelly of the Ontario Court of Appeal, was set up to investigate the rise of Windfall shares to $5.60 from 56 cents and their collapse to #0 cents on the Toronto Stock Exchange in a 19-day span in July, 1964. | The commission heard eyid-' ence of fat profits, and some hefty losses, taken by brokers who were members of the ex- change. ' In the report, Mr. Justice Kelly says: "The high percentage of Windfall company shares! traded by members * the | brokerage community raises changes. -- as to whethei|_ On the widely discussed sub- i the benefit " the investing | ject of primary distribution, the} public or for the personal con- selling Set ag | i ifro a comp s y | boreal ati ee from a company's treasury the| lit would not be unr to expect that governors of the ex- change could devise effective rules to maintain that charac- ter and to impose sanctions for the misuse of its facilities." Mr. Justice Kelly said the exchange, as a self - policing bady, displays weaknesses in three respects: --Rule making has not kept pace with the ifgenuity of those who wish to take ad- vantage of deficiencies in the rules. me --There is widespread depar- ture from strict observance of the spirit of the rules. --There is a woeful lack of any effective surveillance to MORE DESIRABLE The report recommends as a desirable end that all securities exchanges in Canada be gov- 'erned by identical regulations. be the establishment of a na- tional body to regulate the pro- cedure of all Canadian ex- assure the adherence to rules. 'i But even more desirable would report says it is incompatible} a on with the true function of an ex- e Windfall fiasco. The royal commission, inves- tigating the frenzied rise and fall of Windfall shares on the Toronto Stock Exchange during the copper boom in Timmins in 1964, said Mr. Campbell's trad- ing in Windfall stock was "shocking" and that his con- duct was a matter that falls un- der the jurisdiction of the at- torney - general's department. The commission chairman, Mr. Justice Arthur Kelly, said ithere 'was no justification for! interference|Campbell's trading in Windfall hich can be accounted for) Stock and x loan 'of §,900 af |John Campbell's |wI only by his complete miscon- ception of the duties incumbent pon him as director.' Mr. pe. in August, 1964, for 1 TORONTO (CP) High- lights of the report of the Ex-Director rut =: Under Kelly Fire -- TORONTO (CP) -- A royal conflict of interests and re- signed the following month. Mr. Campbell was. involved when the securities commission and the stock exchange urged Windfall Cils and Mines Ltd. to disclose information on drilling at its Timmins property, adja- cent to the giant Texas Gulf lead-zinc-copper discovery. Mr. Campbell successfully fought off attempts to suspend trading of Windfall on the exchange. In testimony before the com- mission Mr, Campbell admitted that he and his wife made $29,- 145 from trading Windfall shares during the stock's me- teoric rise in price to $5.60 from 56 cents while he was di- rector of the securities commis- sion. Mr. Justice Kelly said Mr. Windfall shares he _ obtained from Viola MacMillan, pro- moter of Windfall and wife of the company's president, con- Campbell, 51, was sus-|stituted the "most shocking in- nded from his securities post|cident revealed before the com- possible| mission."' WINDFALL HIGHLIGHTS Some e view stock brokers held th the stock market royal commission on 'Windfall | was a private gaming club, Oils and Mines Ltd., released today by the Ontario govern- ment: i i Behavior of John Campbell, | former director of the Onta- rio Securities Commission, there for their personal bene- fit. No punitive action against anyone was recommended. had George and Viola MacMil- lan seen fit to make a frank statement regarding what was in the drill core, the unusual market action would have been appreciably slowed if not stalled. "During July.6 and the days which immediately followed... any such statement would have WINDFALL REPORT «Continued from Page One) land Mr. Campbell--telephoned minister 'of his own financial 'in: volvement, J Mr. Justice Kelly noted that the evidence showed the minis- ter.---who--was in a_ hotel room here with the MacMillans Gen. Graham July 12 asking what information was required, Next day, Mr. Wardrope hecked on the progress of a been detrimental to their inter ests. to DIDN'T TELL TRUTH "Not only did they refrain from telling the truth, but in such statements as were made, the facts which were stated and the manner in which they were framed were such as to be mis- leading and must have been cal- culated so to be." At another point the report says: "Many peope who entered the market after July 7 suf- fered losses through the com- plete failure of George and Viola MacMillan, as officers and controlling shareholders of a company, to recognize their obligations to see that trading of the shares of the company on a public exchange took place in the light of the most |accurate information available and without any misinformation capable of correction which had |a direct bearing on the market | price." | Apart from the MacMillans, ithe report says, there is no ev- lidence anyone else "deliber- lately exercised any manipula- ltive influences" on the Windfall it being prepared by Windfall and again called the exchange head to say it would be along soon, Gen. Graham testified the minister used no pressure and was just 'ex- pressing a genuine interest" in the company. The c i di that--apart from public testi- mony by and about the minis- ter--the commission had an in- vestigator chasing down rumors, involving him, The net result was "'no conduct which is not entirely consistent with the dis- charge of the duties of a min- ister of the Crown." One of the Wardrope angles concerned Windfall trading ac- tivity by Osie Villeneuve, Pro-| gressive Conservative .member of the legislature for Glengarry, Ff " a The report says that on July 10 Mr. Villeneuve was long 5,500 shares for which he owed his broker $18,000 and had lbecome "greatly disturbed" over possible exchange action; He telephoned Mr. Wardrope telling him of his personal com- mitment and asking whether he had heard. anything. who made $8,000 on the stock.| se a eel ea ad U.S. Buildup Alarms China But Not Enough To Parlay By JOHN M. HIGHTOWER WASHINGTON (AP) --For several weeks the United States has been receiving reports from Eastern Europe Communist sources that the, leaders of China are becoming alarmed at the U.S. military buildup in Southeast Asia. Well - informed Washington of- ficials said the Chinese high command is beginning to under- stand the extent of the U.S. com- mitment in South Viet Nam and the Johnson administration's de- terntination to prevent a Com- munist takeover. The Chinese alarm is assumed here to be based on fears about how extensive the expansion of U.S. military power will be, how long the forces will remain so close to Chinese territory and capitals with a press confer- ence "invitation" to- the "U:S., India and even the Soviet Union! to.invade Red Ching if they} dared. He proclaimed that) China would wreck all comers. But those remarks, as quoted) by Japanese and British news-| paper men, were toned down) Wednesday night in an official version issued eight days later through the New Ching news agency. The Change lent cred- ence to observers' speculation, because of the delay, that Pe- king party officials had thought! Chen Yi went too far. | The official version, omitting all mention of an invitation, said China has been waiting for a U.S. attack for 16 years and quoted Chen Yi as adding: POPPI OG Ee TREE ATTESTS TO BAD BLOOD CULVER CITY, Calif. (AP) --The Crestin Lopez home has a unique bit of _jandseaping: A large dale palm tree split neatly down the .middle. For 30 years the squat tree grew on a property line between the Lopez house and the Euard Schutt house. The Schutts wanted to cut the whole tree down -be- cause its spreading roots. were cracking concrete and clogging sewer pipes. When the two neighbors couldn't agree on a solu- tion, Mrs. Lopez said, the Schutts acted alone. They hired a tree surgeon who charged them $185 to cut away half the tree on their side. whether the U.S. might on some pretext attack China. There has been no indication, | | high U.S. officials say, that the! concern in Peking has caused) | any veering of Chinese policy to- | fear a negotiated settlement in' Viet Nam. As far as the Chinese Commu- nists are concerned, South Viet | Nam is apparently the sore | point of a complex of crises. {CONTEST LEADERSHIP Foremost among these is the Moscow - Peking rivalry for |leadership of world Communist | parties and for influencing neu- jtralist countries -- a race in hy Full high school with CITY OF OSHAWA TOWN PLANNING CLERK No. 1 Nov. 1/65 -- Salary Range $4635. -- $5371. inci or all of graphy, English, ics. Civil Engineering, || research dota, or reloted experience desirable, onc TOWN PLANNING CLERK No. 3 Nov. 1/65 -- Salary Range $5088. -- $5873, Portia! University education preferred in Geogrophy, Architecture or Duties--General office, clerical. 'and secretarial duties, osserobly of Office experience preferably in municipol field, land surveyor's office Willing to train personnel with required qualifications and initiative in, rapidly expanding end interesting field of Town Planning, market. |. Mr. Villeneuve and Mr. | No doubt professional or semi-|Wardrope testified the minister |professional traders made gave no information purporting jmoney. But this apparently re-|to deal with core values. Mr. sulted from taking advantage of|Wardrope said he had no infor- |which Russia with its greater] power and aid potential seems| to be still well ahead. Starting salary commensurate with education and qualifications, Liberal employee benefits, rapidly growing city---75,000 population. | Eight days ago Chinese For- Applicetions giving age, marital stetus, quelificetions, experience pm,, 15th October, 1965 received until 5: le sonnel Officer, City Hell, Oshewe, Onterie. was 'the most shocking inci. jeign Minister Chen Yi startled] dent." a situation rather than creat-/mation to give. ing it. | "To use an analogy, |played better poker with the cards dealt to them but they did not attempt to deal from MUST DEVISE RULES change." ee 'In short, the question is. 'Primary distribution of se-| whether the members of the|curities has no place on an ex- brokerage community reSponsi-|change the purpose of which is ble for that trading look upon to provide, on a very wide ba- the exchange as a public se-|sis, a market for an investor | curities market or as a private|to buy from, or sell to, another} g club maintained for investor securities which -have! their own benefit. already entered into the "Tf there were a sincere de-' market. HERE and THERE The 90 building permits soy beans. The public is wel- issued by the Township of come to attend, say club offi- Pickering during September _cials. represented an estimated Value of $1,095,000. Included were permits for 58 dwell- ings with an estimated value of $13,000 each. If the stock exchange can't govern itself some outside body will have to. Such statements as George and Viola MacMillan issued during Windfall trading must have been calculated to be misleading. A national body to regulate all Canadian exchanges is a Behavior of Mines Minister George Wardrope of Ontario was entirely consistent with | his duties as minister. islation. No one single event could have produced the situation that led to the appointment of the royal commission. WEATHER FORECAST Seasonable Temperatures | Overcast With Showers; meeting along with J. B. | TORONTO (CP) -- Official, Hamilton Annand, manager, and Jack | forecasts issued by the weather|St. Catharines Risebrough, sales representa- |Office at 5:30 a.m. Toronto tive. Mr. Risebrough will | Synopsis: A few showers are| Peterborough .. give a talk on sales promo- |¢xpected in southern regions) Kingston tion work' by the PUC in |Friday with unsettled weather | Trenton Oshawa. continuing in the north. Killgloe: secssvecas Lake St. Clair, Lake Erie i During the week ending Oct. Muskoka : Lake Huron, Windsor, London: jy 2, 343 patients were admitted | Variable cloudiness with a few Sudbury to the Oshawa General Hospi- | scattered showers. Winds light. Pariton tal, Three hundred and fifty- | Niagara, Lake Ontario, Hal- m A three discharges were report- jburton, Killaloe, Hamilton, enn ig ed. A total of 91 major and |Toronto: Variable cloudiness' white Rie 129 minor operations were jwith chance of a shower: Sea-| Moosonee retbasah performed as well as 69 eye, sonable temperatures. Winds! timmins .. ear, nose and throat opera- | Southeast 15 to 20. ; tions. There were 247 treat- Georgian Bay, Timaga mi, ments and examinations. (Cochrane, Western James Bay, Forty-one casts were applied. |North Bay, Sudbury: Cloudy Physiotherapy treatments |with showers. Seasonable tem- rtotalled 901 and visits to this | peratures. Winds light. type of patient totalled 623. | White River, Algoma: Cloudy There were 156 occupational | with scattered showers. Sea- therapy treatments and 16 | sonable temperature. Winds 6 speech therapy cases. light. Forecast Temperatures | Low tonight, high Friday: 2 | Washington and other Western] they; DRASTIC CHANGES NEEDED jjeumeum For the future, the commis-| Y f the deck." changes" in the governing and| desirable end. ithe Dotom. @ the business conduct of the stock! Saaeeeeed RESIGNED FROM OSC }exchange to restore public con- ' The Ontario Securities Com- Mr. Justice Kelly struck fidence in it. | : his involvement with Windfall transactions came out, on the;there showed what could be Primary distribution of se- ground of conflict of interest, done here. ST. WEST curities through the stock ex- and who subsequently resigned.| A _ specific recommendation . jtrading of Windfall suspended|companies--the stage at which | PHONE on the exchange--while he and|the Windfall rocket took off--be his wife were trading in it--|removed from the exchange. | 723-6651 and the commissioner said such| Listing requirements are looser ONESTA E sioner says, there wi!] have to} mission should be: strength- |sharply at Mr. Campbell, who} The exchange situation was | , ' ened and its role should be |was suspended as director ofjreminiscent of that confronting | err § ro uce the New York Stock Exchange} " change should be: stopped. Mr. Campbell success-|was that primary distribution of | actions were unjustified andjfor mining companies than for SERVIZIO Six Public Utilities Com- mission officials are in Picton today attending the annual meeting of the Ontario Muni- cipal Electrical. Association, The meeting ends Friday noon, Mayor Lyman Gifford, H. F. Baldwin, chairman, and commissioners E. Armstrong and Roy Fleming | be 'some fairly drastic spelled out clearly by new leg- |the securities commission after in 1938. What had been done| 145 KING -----| fully fought off attempts to have| shares of speculative- mining} showed "complete misconcep-' industrials. Two head of thoroughbred Holstein cattle, contributed by Elmcroft Farms, Bea- verton, was included in the 'oup of 87 Holsteins which left Montreal by air for Ger- many. They will be ubject to an experiment te\deter- mine how Canadian ani U.S. Holsteins compare with a similar group of German Holsteins. Scottish Rite masons gath- ered at a testimonial dinner at the Hotel Genosha last night to honor Judge A. C. Hall, who was recently cor- oneted a Grand Inspector General (Honorary) 33 deg. of the Ancient and Accepted Scottish [Rite for Canada, at the annual session held in Montreal. The speaker of the evening was Dr. W. A. Jones, deputy for Ontario. Other speakers, paying trib- ute were: Harry L. Martyn, Past Grand Master of the Grand Lodge of Canada in the Province of Ontario, and Howard B. Moore, a former Lieutenant Grand Comman- der of the Scottish Rite. Judge Hal was presented with a set of gold cuff links on behalf of the Oshawa Scottish Rite Club by Wil- liam Alger. Walter Famme, 'president of the Oshawa Scottish Rite was chairman. Oshawa Organic Gardeners Cub regular meeting will be held Tuesday, Oct. 12 at the E. A, Lovell school auditor- jum. Mrs. D. Arnold will speak on wheat grass and Mrs. Sparkes will speak on tion of the duties incumbent; An expert study of the prob-| upon him as director.' lems of financing the mining in-| His trading and the fact he/dustry was suggested, in the} borrowed 5,000 shares of Wind-/hope that it might bring "a de- | \fall from Viola MacMillan--|gree of the orderliness which} partly to cover his wife's short|now exists in the general financ'| position--constituted "the mostjing of industry in this country."! shocking incident revealed be- ' ifore the commission," Mr, Jus- tice Kelly states. | The evidence showed that Mr. Campbell enlisted Mines Minister Wardrope as an inter- mediary with President Howard Graham of the Toronto Stock Exchange--at a time when the exchange was demanding an in- formative statement from Wind- fall with its possible delisting in the background -- but the commissioner observed that 55 |!Mr. Campbell had not told the OSHAWA ASSISTANT PRINTING CLERK Noy. 1, 1965 Selary Renge--$72.00 week to $80.00 week. 361% hour week. Libera! employee benefits. Per Informazione, chiamate Ross Bonomo +eeeeeees orth BAY ccc cs To operete No. 450 A. B. Dick Offset Machine; No. 914 Zerox Photocopier; No » 4 Zerox "Unit end Gestetner Machine, Previous experience on these machines preferred, general kiiowledge of A small shed at the rear paper stocks. of Lorne Kellet's store at So- Windsor : lina was destroyed by fire (st. Thomas. A 50 Tuesday night. The wind di- |London .... 50 rection prevented the blaze ore, 2p - Fy " & Mourn ores Hy a" to adjacent struc Wingham <... 42 High School education. Applications invited from retired persons who have knowledge of or practical experierite on above equipment. Must be physically fit Applications close October 15th, 1965 Personnel Officer, City Hell, Oshewe. Two readings were given by Bowmanville Council to a by law to construct atsix-inch watermain on Queefi sq Third reading will be given if the Ontario Municipal Board ap- proves. RYERSON GRADUATES Opportunities For Plant Supervision aver (i) snaves SHIFFER-HILLMAN TARLORED Your mest becoming shades are amenq oar 68 rich mes of famows Gatewood English worsted. Pick out yours and leok your best ! Whenawoman asks for wine... give her Jordan Valley Crackling Rosé. Here's a wine to match her personality... pleasantly sparkling, refreshingly lively, even slightly frivolous. Lightly-bubbled, modest cost, superb taste! She JORDAN WINES JORDAN VALLEY Cracking Rost PATILLANT Immediate openings are available for graduates of technological schools to undergo extensive training for plant supervisory positions. Areas of training will include such functions as production material handling, and trades maintenance, Individuals with two to five year industrial ex- perience; proven leadership qualities; and an aptitude and Interest in plant supervision should SERVE CHILLED direct a complete personal resume, including work experience to: Supervisor Salaried Personnel Ford Moter Company of Canada, Limited Onterio Truck Plant Oakville, Ontario MEN'S WEAR s 10 KING STREET WEST OSHAWA |