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Wingham Advance-Times, 1980-03-26, Page 2• • �s new councillor McBurney named Turnbi.:iu „Councillor Brian McBurney accepted an appointment as reeve for Turnberry Township during its general ,:meeting The decision to replace • ie. Reeve Don Eadie with McBurney took only a few mutes with virtually no 1s. ,.asiqp or comments from other 'xihucillors or Deputy Reeve Harold Elliott. Hot. , er, in a recorded vote, Mr. Elliott opposed the motion while Councillors Doug For- tune and Ben Malda voted yes. After accepting his new post Mr. McBurney expressed disappointment at Mr. Eadie's resignation, stating, "It will be a long time before we see another reeve as good as the one we had.” By solving the problem of replacing Mr. Eadie the township was •left one coun- cillor short. That too, was taken care of quickly. Checking over the last election results it was noted that Lynn Hoy, a contender for council, had received the next highest number of votes and therefore was given the first crack at the position. After being contacted by phone Mr. Hoy accepted the offer. Regarding the ap- pointments council felt it had only two options: to leave the position vacant or appoint a replacement. Calling an election was ruled out because one is already slated for November. In other business the /Misleading credit rating? township discussed its annual grant to the Federation of Agriculture. During the last general meeting Mr. Malda suggested that the $600 donation be placed on farmers' taxes so that non -farmers won't have to pay into it. He also felt that $600 was a bit high for one organization. As a result the clerk, Dorothy Kelly, was authorized to look into the matter • with the assessment office. Mrs. Kelly reported that the assessment office had no authority to put the levy on the master tax tapes. Therefore she would have to send a list of township farmers to In- ternational Business Machines every year to be programmed, which along with the paper work would not be economically feasible for Turnberry. As a result Mr: Fortune moved that the donation be given. "A lot of what the federation does helps non- members too," he added. However Mr. Malda refused to second the motion, stating, "1 don't mind giving them some, but not to the tune of $•600." Mr. Elliott, who was in favor of the donation during the last meeting,' suddenly decided that he agreed with Mr. Malda and declared that he wouldn't sign the motion. With that Mr. Malda moved that a grant of $400 be paid instead of $600. As Mr. For - Egg producers were not warned' about company's financial crisis By Alice Gibb Ontario egg producers, who lost $428,000 when C. B. Whyte and Sons Ltd., a Burlington egg grading station, went into receivership, are angry they weren't warned of the com- pany's financial crisis. The Bank of Montreal re- called its ' loan to the Whyte Company on Friday, March 7, and the company went into receivership late that after- noon. The company had assets of ,approximately $1.1 million, and liabilities of $1.7-$1.8 million, according to James Cringan, the accountant ac- ting as receiver in the matter. fir. Cringan told the pro- ducers meeting in the Strat- ford Coliseum last Thursday, "The company has been operating on an overdraft for 'some time." Producers expressed anger at the fact that when "some; asked their own bank man- agers to run a credit check on C. B. Whyte and Sons Ltd. with the Bank of Montreal, the report came back that the company had ' an A-1 rating. "If the banks have been giving out false information, then they should be taken to task," one producer declared. Mae Gouvenlock, an egg producer from RR 5, Seaforth, who organized the meeting, said when the meeting opened, that producers were gathered • "because we have all lost money on our eggs that we shipped to C. B. Whyte Ltd." Sipe said, "Tbis fact, in my view, points up the need for an egg board -administered . in- surance fund that will see that this may not happen again." Many of the producers learned John Whyte was in financial trouble when their egg cheques bounced on March 6. However, the pro- ducers said their eggs were still picked up on March 7 and delivered to Burlington, aftaough the company went into receivership that after- noon Max Demeray, a Wingham area producer, asked Mr. Cringan how long the bank had given Mr. Whyte to meet his loan. Mr. Cringan said Mr. Whyte had been given °tie day to raise the $850,000 he owed the bank. The producers, as un- secured creditors, are un- likely to receive payment for their last shipments of eggs, since the company owes almost $1.3 million to secured creditors, including the Bank of Montreal and a trust com- pany. Mr. Cringan told the pro- ducers the company had been having financial problems for some time. He said, the com- pany was undercapitalized when it moved to its new loca- tion, that the grading, station was hurt by the egg shortage a year ago, when the company Mitt to import ;eggs from the U.S. at a loss, and that high interest rates were a problem. In response to questions from the producers, Mr. Cringan said the Bank of • Montreal had asked him to look into the Whyte Com- pany's finances last July. Some of the producers then demanded to know why the Bank of Montreal was "mis- leading the bunch of us" by still giving out an A-1 credit rating for the egg grading station as recently as a few months ago. A bank manager in atten- dance at the meeting said he had also been told the com- pany had an. A-1 rating. (The Bank -of Montreal did tit have a representative in attendance at the meeting.) Mr. Cringan told producers he found thecompany wasn't making enough money on the eggs being sold and wasn't' selling enough eggs to meet its capacity. He said in Dec- ember, 1979, the company was receiving small eggs, so it was importing larger ones from Manitoba and selling them at a loss. 47 HYDRO BLACKOUT Don't be caught with no way to heat or cook again. Buy a woodburning stove now. We Carry - e Oldtimer Airtights is Connor flowndrafters • Econ -a Woad Auxiliary furnace ® Nordic Water fsmace e Ryder Insulated Chimney ptUS et Delta Solar Panels ® FAt s, toasts Nordwore sad Tools Langside Supply Phone 392-8118 Corner of sidsrood 1S and the 6th ceseeession of *Moss • He said the company's fin- ancial problems increased in the months of December, January and February and the Bank of Montreal was losing from $10-$20,000 in those months. He also said negotiations were underway with another egg grading station regarding a merger of the two com- panies, but the accountant added, "Even the combined companies wouldn't be viable without an increase in (egg) prices." He said when the talks fell through , the Bank of Montreal decided' to call its loan. When Brian Ellsworth, manager of the Ontario Egg Producers' Marketing Board, was asked if the board knew John Whyte was having fin- ancial problems, Mr. Ells- worth said the board knew there were some problems. However, he said John Whyte paid his levy as regularly as anyone else and "our dealings with him were all straight for- ward". Mr. Ellsworth said the board wasn't in any position to say the ,Whyte operation was less viable than , other opera- tions. He told producers, "The. grading station business is very tight and there's very little profit in it." He echoed what Mr. Crinan had said, that while there was talk of the Whyte company merging with another grading station, "there was too much indebtedness and, not enough promise of even a merger pulling them out." Producers also questioned why their eggs were pickedup on March 7 and delivered to Whyte when the company was going into receivership. Howard Wood, of Howard L. Wood Transport Ltd., Bowmanville, who shipped eggs for producers, said his truck delivered eggs to the Whyte company at about 4:30 p.m. March 7 and that eggs were unloaded at the station and the bill signed 'Received'. He said if he had known the company •: was going into receivership later that after- noon, "We could have moved the eggs elsewhere andpro= bably reduced the producers' losses." The money from the eggs shipped March 7 will go to tie. secured creditors of C. B. Whyte and Sons Ltd. Brian Ellsworth said abet 13 producers in Huron -County and eight in Perth County lost money when the company went into receivership. One of. the larger producers in the county lost $24,000 in his final shipments to the company and a number of other producers lost from $9-10,000 each. - In response to questions from producers, Mr. Cringan told them the title to the eggs shipped oh March 7 changed once they left the farm and that the eggs then belonged to the grading station. One producer asked, "Why didn't you close Whyte's before the eggs were delivered Friday?" The accountant also, told farmers they must return all the equipment, such asacarts and. dollies, on • their farms which belongs to John Whyte, under the terms of the Bank- ruptcy Act. He said legally this property now belongs to the receiver. A Bruce County producer said he'd already returned his egg trays by dropping them on the desk of the Bank of Montreal manager in Tees - water. Another producer called out, "Would it be legal for egg producers in Ontario to boy- cott the Bank of Montreal?" In a meeting held with egg producers and representa- tives es ref the marketing' Ward after the open part of the meeting, the „ producers elected a the man com- mittee to try and recover some of the money lost by pro- ducers. The three men elected are Wesley May, a producer from Hastings County, Harry Pelissero from the Niagara Peninsula, and Bill Fleming, a feed mill owner who is also a producer, from Huron County. Tom Graham, an egg -pro- ducer from St. Marys and Ross. McEwan of the Sarnia area, members of the egg marketing board will also serve on the committee. The committee met Monday in the board's office in Willow - dale, with an attorney present to advise it on future action Huron Farm and Home News For the eighth consecutive year, the government of Ontario is operating the Experience program. Ile sure to ask your' Cowl- .J- ... eh:. t --at: otTne.,i" :w the application form if it is not on display. All Experience '80 positions pay the provincial minimum wage: students under 18 years of age, 2.15 per hour, young people, student and non -student, 18 years of age or over; $3.00 per hour. Application deadlines are for postsecondary, April 1, and for secondary and all others, April 16. If you need more in- formation or clarification of the Ontario Experience program, write to: Ontario Experience '80, Box 500, Queen's Park, Toronto, On- tario, M7A 1Z1, or call Toronto (416) 965-1546. If you live outside Toronto, call collect. Jobs are available in the Ministry of Agriculture and 1'ood, Ministry of Attorney General, Ministry of Com- munity and Social Services, Ministry of Constnmrr And \.unLnrercrai lieiations, Ministry of Correctional Services, Ministry of Culture and Recreation, Ministry of Education: Ministry of Colleges and Universities, Ministry of Energy, Ministry of Environment, Ministry of Health, Ministry of Housing, Ministry of Natural Resources, Ministry of Northern Affairs, Secretariat of Social Development, Ma vistry of Solicitor General, Civil Service Cot -omission, Provincial Secretariat for Justice, Legislative As- sembly, Secretariat for Resources Development and the Ministry of Intergov- ernmental Affairs. Lea MacGregor Estensfee Assistant ed r • 'ate sac tided it he declared, "WS:- tot had that an o IP... ri404olike this has to be c�. °,:1.because of sour f a 4‘..1.: ollncil." II wf s also decided that l OeS Ni r lson, the township road sulierintendtent, would attend a meeting on the 'Mc - Mk ha e1 Mun cipal Drain in Howick; A. preliminary report on the dram will be'presented at the 'm ting to be held at Howicll'sunicipal office in Gorrie.on March 20 at 10 a.m. Gravel tenders for crushing, hauling and. stock piling about 16,000 yards:of gravel from the McGill Township pit were opened during the meeting. The tender from Bannerman Contracting Ltd., Kincardine, • 4. u waswink accepted, The COSMO be $1 68,p,er cubic yat Tenders for the township's P750, 4.1PAltw�ra� a1sv'.. receiie+l ugd v „ e!d' ,'he,•ttte 'from , rradbnrnt Car Guel was accepted. The offers for $525 CounciI also approved • a severance "app at on• frdzrt *AO Mote on Iighwa ►. ft6� The severance was for 8.6 acreselocated Gest. east of the garage, The application was forwarded from Morris Township for Ttirnberry's comments. During. the meeting Joe Gibson was appointed weed • inspector `. Bn: fr was appointed.andto riariteJefFarmay Safety Committee. • NEW POSTS --'-Councillor Brian McBurney, and Lynn Hoy took tin new jobs on the Turnberry Township Coun- cil. Mr. *Burney accepted, the poSItion of reeve, replacing Don Eadie, and Mr. Hoy was appointed coun- cillor, accepting Mr. McBurney's positibn. Our patentedshank, assembly couples unique spring -action with.a wide pivot point. Shank action pulverizes soil for a moisture -saving seedbed. MANUFACTURED 'lOR DEPENDABILITY For any field condition; any size field. you Can counton the Wil=Richfield cultivator. ' You get sonstant'soil shattering action fromthe tlatented spring -action shank assembly. The shank trips tiO to '16 ; ' inches.over field obstructions. The sturdy; tubular 4 -bar frame and 'wing have 39" fore and aft clearance between crossmembers. 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