Times-Advocate, 1988-06-22, Page 24
DISCUSS DEBT - Paul Klopp, president of the Huron Federation of Agriculture (left) sat with panelists Doug Car-
niss, OFA Executive, Ken Kelly, OFA executive, -farmer and consultant, and Ron Phillips, consultant with the Arva
GIs Kingsmount Group during a discussion on farm debt at the June meeting of the Huron F of A held in Hensall Public
School.
rime Stoppers
While working alone on Mon-
day, March 3, 1986 a female vari-
ety story clerk was robbed at knife
point in Fordwich, Ontario.
At approximately 5:00 p.m. a
white male describedat5'5",150-
160 Ib. with a stocky build, Tight
brown to blonde hair, blue eyes,
no accent and clean shaven
walked into Millers Variety Store.
He then declared that this was a
robbery and pulled out a 6" hunt-
ing knife. •
As a car pulled up outside the.
store the robber went behind the
counter and took approximately
5437 out of the till. He then ran out
of the store. He was wearing a
dark leather jacket and a dark
toque. And was last seen driving
west on Concession 6 of Ilowick
Township in a blue Jeep Rene-'
gade or C17 with a white vinyl or
soft top roof. This vehicle had
Ontario license plates on it.
If you have any information
bout this or any other crime, call
CRIME STOPPERS OF
HURON COUNTY toll free at 1-
800-265-1777. Your call will not
be traced, nor recorded and your
anonymity is guaranteed. If an
arrest is made you could darn a
cash reward of up to S 1,000. You
will not have to identify yourself
nor testify in court.
Rememer, Crime doesn't pay,
but Crime Stoppers docs.
BLYTH OPENING - Among the head table guests at the dinner which
opened the 1988 Blyth Festival were board vice-president Don McCaffrey,
Alice Monroe, honorary chairman of the Memorial Hall expansion project
committee and artistic director Katherine Kaszas. Guest speaker was
Edna Staebler, whose article was the basis of the premiere play "The Cook-
ie War".
Change date
of Decoration
EXETER - The -date for the annu-
al Decoration Day at the Exeter Ce-
metery will be the second Sunday
in August for this year, but in suc-
ceeding years the date will be
changed.
Beginning in 1989, the service
which features a parade by members
of the Exeter Legion and the Exeter
Oddfcllows will be held on the first
Sunday after Labour Day.
The two groups petitioned the
board for the change to September
because they were on recess during
July and August as well as the Odd -
fellows had plans to use the high-
school band.
The cemetery board's reason for
the August date was that flowers
werb at their best and the student
staff had not yet returned to school
so preparations would he carried out
easier. -
Councillor Ben Hoogenboom
agreed with the change to Septem-
ber saying, " It's an ideal time with
everybody back from holidays and
flowers are no problem at that time
of year."
Accidents
Continued from front page
A vehicle driven by Sharon Car-
ter, RR 3, Exeter left the roadway
of Usborne Concession road 6-7 on
Thursday and struck a tree inflicting
heavy damage to the vehicle, but
no injury to the driver.
Both drivers sustained minor in-
juries when vehicles driven by
Magnus Kristcnscn of London and
Karl Heilimo, Don Mills collided
Friday on Highway 81, cast of
Grand Bend.
At 10.50 p.m. the same day, a
vehicle operated by Charmaine Bi-
crling, Crediton struck a parked ve-
hicle owned by Tommy Komaromi
of London on Stephen township
Concession road 6-7.
Banks blamed for "schmozzle"
F of A discuss farm debt
"Changing rules" and "Dealing
with lenders in the 1980s" were the
dual - and related - topics of discus-
sion when members of the Huron
Federation of Agriculture met at
Hensall Public School on June 15.
The topics were thoroughly dis-
sected by three guests, and the lend-
ing policies of Canadian banks
emerged as one of the major contri-
butors to the current crisis.
Speaking from a background of
17 years in banking, and the last
tight as an agricultural consultant,
Ron Phillips zeroed in on the root
of the problem as "too much debt
relative to the real value of farm as-
sets", and predicted "the crisis will
continue until we deal with the root
cause".
In the past five years, the US has
reduced farm debt from 220 billi&t
to 150. In the same period, farm
debt in Canada has risen from 21.9
billion to just under 23. In dealing
with and correcting their debt situa-
tion, the Americans will be in a
good position to prosper when
commoditiy prices turn around. An
overall adjustment of debt is a ma-
jor requirement for a strong agri-
cultural economy.
This was accomplished in the US
at the cost of over 100 banks going
broke; our system is different, and
Canadian shareholders wouldn't like
it, but Phillips asserts that banks
here must also absorb losses.
"I find it is no small coincidence
that the farm economy is a sham-
bles just a few short years after the
banks became serious liarticipants
in agricultural lending", Phillips
stated. "Banks never made loans to
farmers until the mid-60s....banks
must take the 'major share of the
blame, because they continue to be
poor stewards of Canada's monetary
system."
Philips said in their lust for prof-
its, banks failed to analyze on the
basis of real income. They made
too much money available for pur-
chase of farm assets, creatinfalse
inflationary levels. What goes up
muss -come down. He pointed out
that if all farm debt were put in one
package and called one corporation,
the combined debt would be five
tunes the magnitude of Dome Pe-
troleum,
"Where*are the banks now?",
Phillips asked, answering his own
question by saying they seem to
have abandoned agriculture, and
won't participate ifanother lender is
taking a loss. One bank has fired
all its agricologists.
"The banking fraternity played a
major part in causing this smozzle,
and they should play a major part in
d.
straightening it out", Philips assert -
He believes banks need more gov-
ernment intervention, and farm cred-
it policies less.
"If the Farm Debt Review Board
feels in some cases a settlement
might be negotiated at a lower rate,
a lower rate should be imposed",
Phillips said. He expressed disap-
pointment, that the role of the farm
debt review board has been watered
down.
On the other hand, farm credit
policies suffer from too much geo-
vernment, and need to more flexi-
ble.
He also wants to see nature take
its course, and let the banks take
substantial losses. He estimates
that FCC could lose two billion
and five billion could be shared
among banks, credit unions, trust
companies and farm equipment
companies.
Doug Garniss, former Huron
president now on the OFA execu-
tive, stressed the OFA's opinion
that the problem of farm debt is
still serios, and the provincial gov-
ernment should be persuaded to re-
think its decision to cut back from
100 percept of the original OF-
FIRR program to 40 percent this
September.
Citing the fact the farm debt is
still at 4.8 billion dollars while
farm income is predicted to drop
from 1.7 to 157 billion this year,
Garniss said "I hope a whole lot of
you talk to your member of parlia-
ment. It's not too late to change
it."
Garniss stated that the,farm debt
review boards are not solving all
the problems. He gave two reasons
behind the OFA's wish to have the
government to set up a court sys-
tem to allow the farmer or the credi-
tor to appeal - either party would
have somewhere else to go, and the
system would work better. He said
Manitoba's mediation boards have
double Ontario's success rate.
Ken Kelly, a Paisley farmer, agri-
cultural consultant with Mackenzie
and Associates at Inverhuron, and a
member .of the OFA; spoke first
about the OFA's efforts to change
the recently reinterpreted guidelines
for rural credit unions which would
treat agricultural loans as commer-
cial rather than personal, with the
resultant constraints.
A meeting, with the Credit Union
League of Ontario and the ministry
of lending has produced a draft revi-
sion allowing each credit union to
have a peer review of each loan ap-
plication, and make decisions based
on the make-up of the members of
that credit union. and the applicant's
expertise and track record in agricul-
ture.
"The OFA led the lobby to have
credit unions remain significant
lenders. We think we've won the
battle, but it's not final", Kelly
said.
The OFA will also be drafting a
policy on the Farm Credit Corpora-
tion for their next meeting, based
on the belief the government
should play a leading role, and
FCC should be the dominant sup-
plier of long-term credit, Kelly
said.
Kelly said retiring, restructured
and beginning farmers should all be
concerned with the impending fund-
ing cuts. In the first case, if poten-
tial buyers can't obtain credit, those
wanting to retire won't find buyers.
Twenty-eight percent ,pf restruc-
tured farmers are in difficulty; this
group is made up primarily of
young, aggressive, highly produc-
tive food producers.
Kelly said in the spring the gov-
ernment had announced additional
millions for restructuring, but in an
article that day lisitng FCC prefer-
ences, access to restructuring funds
were down at number eight and
nine.
The meeting was opened to ques-
tions and comment from the 30
people in attendance. One farmer
who has never defaulted on a loan
said he was grilled to the point of
insult while applying for an operat-
ing loan this year. Phillips pointed
out there is no recognition of past
performance.
Garniss conceded farmers were
partly responsible but now, after
they have learned not to overextend
themselves, banks have shut off the
tap. He feels the FCC should have
been pulling back at the same time
as the banks were lending all that
money.
The three panelists agreed that be-
fore, banks lent money to farmers
for the wrong reasons, and now
won't lend for the right ones.
Dairy farmer Hank Bennendyk
said he would like to see FCC cri-
teria changed to deal only with
well-managed farm operations, ad-
ding he did not think it ever had a
mandate to bail out inefficient
fahncrs.
Leon Paul is K -FW Citizen of Year
Ambassador of Kirkton
By Ross Haugh
KIRKTON - It was roast time at the Kirkton-
Woodham- Community Centre on June 13 when the
K -W Optimist club named their Citizen of thc Year.
No it wasn't a "Duck " roast , but it was close.
Veteran entertainer and lifelong resident of Kirk -
ton, Lcon Paul received thc auspicious award and
one of the roasters was his brother Gerald, whose
nickname is "Duck".
Almost all of the dozen or more speakers who con-
gratulated Lcon said the Paul Brothers and Shirley
have "put Kirkton on the map" and many attested to
Leon's thriftiness.
Lome Marshall said, " Lcon saved the first quarter
his grandfather gave hint. Ile must have quite a coin
collection by this timc.Timothy Eaton lived in Kirk -
ton in th;; early days, but Lcon has brought more
fame here than anybbdy else."
Norm Amos, a Kirkton veterinarian remembers the
first time he saw Lcon Paul. Ile commented, " It was
way back in the good Gild days before I came to
Kirkton. We enjoyed listening to the Pauls almost
every Sunday night at the i akevicw Casino in Grand
Bend."
Leon's love of the soap operwas brought up by
Susan Schaefer who said, " Each weekend whcn my sister Debbie and I
would get back from school, we would immediately get over to Leon's
to find out what happened on,television."
She continued about her billiard competition with 1.con , " i was able
to win quite often until we started playing for money. i had a piggy
bank at Leon and Shirley's house and many a time it was depleted be-
cause of a pool game .ind Shirley had to re-
plenish it."
In referring to Leon's other, Kcn
Blacklcmother,r, said, " It was remarkable the way
Nellie put up with the three boys.
Wherever i go I am asked,"Do you know
the crazy Pauls?". We arc proud to know
them."
Retired Exeter high school teacher Carl
Mills who married a Paul relative said, "
Leon has been an excellent ambassador for
Kirkton."
Across -the -street neightxmr Bill Schaefer
told the large crowd, "I knew Lcon would
come tonight, he never turns down a frcc dinner. When 1 ask him about
response to some of their shows his answer usually is, "deafening or
thundering applause". I think Mac Davis wrote "it's hard to be humble"
just for Lcon."
Brothers Reg and Gerald also got in their two cents worth. Gerald
said, " We always had to protect Lee. At haying time, we did the mow-
ing and he drove the horses. For what he is today, you can thank Rcg
and i."
Leon's wife Shirley wrapped up the roasting with, " He is a born en-
tertainer, on and off the stage. Ile has fun with all of the children in the
village. He's one of the gang and essentially a happy person, but he is a
real worrier and very impatient."
CONGRATULATIONS -'Leon Paul in the centre is being congratulated by neighbours and friends on being
named K -W Optimist Citizen of the Year. From the left are Norm Amos, Optimist president-elect Gord Robin-
son, Bob Marshall and Bill Ellerington.
alt's hard to be humble"
She continued, " When the Schaefer girls
would come over when they were small and
•get into little bits of trouble, before Leon could
do anything, Debbie would say, "Now -,‘Lee
hold your patience."
Brother Reg read a letter from former Agri-
culture Minister Bill Stewart who said, " You
have contributed so greatly to your communi-
ty."
Flowers were sent by Harold Berry, now liv-
ing in Toronto and a poem written by Evelyn
Johns was read.
Then it was Leon's turn to get the last word
and get even with a few of his roasters and he -
did in his usual hilarious way.
When he received the Citizen of the Year
award from Optimist president Murray Switz-
er, Leon said, "I'm tickled to death. Despite
what you have heard tonight, we didn't always
have money, but we did have fun."
He recalled one night when the Paul Brothers
and Shirley were ready to see one of their pre -
corded shows on the Tommy Hunter show. •
"Lo and behold, about two minutes before the show was to start
our power went off. So, it's a quick trip to mother's and we got
there just'in time."
He continued, " It was strange that the lights were on when we
got back and nobody else was affected. The next day, a couple of
girls told nie , "dad turned off your power."
Leon went on to talk about the Kirkton Garden Party which was
.� part of him for 40 years. Ile was on the
1V114 original committee and after the first
�► year was master of ceremonies and in
charge of obtaining the entertainment.
The Paul Brothers and Shirley are in
Frankenmuth , Michigan this week, do-
ing three shows a day until Saturday
night at the 100th annual Bavarian Fes-
tival.
One of the characteristics of the
Pauls act is their quick change of cos-
tumes and Leon explains, " We usually
did one number and then another act
would take over and we would come back for a second time and
so on. One night at the Elmira Garden Party, the other entertain-
ers failed to show uu, so we decided to wear six costumes on top
of each other and we have been doing that ever since."
Their original number when they started in show business as a
trio was ,"Happy Go Lucky Days and Playmates" with Lee as a
along with wife Shirley acceptslittle Dutch Boy and Gerald as a little girl. -
Citizen of the Year award from In more than 40 years of entertaining, the Pauls have presented
more than 6,000 shows.
HE'S TOPS FOR 1988 - Leon Paul
the Kirkton-Woodham Optimist club
president Murray Switzer.
t