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.
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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.
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