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CANADA S NATI ONAL NEWSPAPER THURSDAY, MAY 15, 2014
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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(HDFFC|00004Z /c.a
ATLANTIC EDITION
Halifax: High 14, Low 9
Complete Forecast: Page 12
F
or most of the past five
months, Hu Jia has sat inside
his Beijing home and waited. One
day, he is certain, a knock will
come and he will once again find
himself in jail, or some other
place where he can be kept
silent.
That day may be soon. At least
five prominent government crit-
ics have already been been
detained by Chinese authorities
in the weeks leading up to June 4,
the 25th anniversary of the day
when Chinese soldiers and tanks
were ordered to open fire on
their own people around Tianan-
men Square.
More arrests will almost cer-
tainly come as China seeks to
mute the memories of the stu-
dents who died then, and the
loss of faith in the Communist
Party that ensued. On Tuesday,
activists reported the disappea-
rance of three journalists, amid a
crackdown on the memory of
Tiananmens dead that the activ-
ists say is the worst in at least a
decade.
Mr. Hu has himself been living
with constant reminders of his
vulnerability he has already
spent 3
1
2 years in jail. He joined
the 1989 student protests as a 15-
year-old and is now often called
Chinas leading activist. Since Jan.
17, with a few exceptions for holi-
days, he has been under house
arrest a condition he has been
told will last until June 8.
NATHAN VANDERKLIPPE BEIJING
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TIANANMEN SQUARE
China tightens grip on activists
as grim anniversary nears
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SECURITY CERTIFICATES
Supreme Court
upholds altered
anti-terror law
Judges discretion needed for fairness, ruling states
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadas top court has upheld a
tough anti-terrorism law aimed
at deporting foreign suspects, rul-
ing that its saving grace is the
ability of judges to keep an eye
out for unfairness.
The discretion granted to des-
ignated judges is the crucial in-
gredient that allows the proceed-
ings to remain fair from begin-
ning to end, Chief Justice Bever-
ley McLachlin wrote for a
unanimous court decision about
the federal security-certificate
system.
It was a message, if an indirect
one, to a Conservative govern-
ment that has been trying to
reduce judicial discretion in sen-
tencing and has run into road-
blocks from judges at all levels:
Tough laws can stand if they pre-
serve a judges role in safeguard-
ing fairness.
The ruling came after a 12-year
battle by a former Ottawa pizza
delivery man, Mohamed Harkat,
whom the Canadian government
declared a danger to Canada and
a member of the al-Qaeda terror-
ist network in 2002.
However, Mr. Harkat may never
be deported to his native Algeria
because of the risk of death or tor-
ture there, and because the court
has said the danger posed by peo-
ple such as Mr. Harkat diminishes
over time. Except for three years
in prison, he has been living in the
community, with his wife and
mother at one point entrusted
with keeping an eye on him.
Public Safety Minister Steven
Blaney expressed satisfaction with
the overall ruling, but the Cana-
dian Council for Refugees and the
International Civil Liberties Moni-
toring Group said it leaves in place
a fundamentally unfair process
that relies on secret evidence.
SEAN FINE OTTAWA
JUSTICE WRITER
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A tenured professor defied a gag
order on speaking out against the
University of Saskatchewans
plans to cut staff and cancel pro-
grams, leading not only to his
dismissal but to a debate over the
duties of management versus the
privileges of academic freedom.
Robert Buckingham, dean of
Public Health, was fired Wednes-
day for criticizing the university
over its TransformUS project,
which would see jobs lost and
faculties combined in a bid to
save $25-million. Dr. Buckingham
believed his freedom of speech
allowed him to express his con-
cerns over how the university
was restructuring. The university
said senior leaders were expected
to publicly support the school
even if they felt otherwise.
That didnt sit well with Dr.
Buckingham, who wrote a public
letter Tuesday entitled The
Silence of the Deans alleging
that university president Illene
Busch-Vishniac told a group of
senior staffers their tenure
would be short if they publicly
opposed the plan.
ALLAN MAKI
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F
rom the courtroom to the
football field, it has been a
historic week for gay rights in the
United States.
In a series of court rulings
across the country, judges have
either struck down or appear
poised to strike down same-sex
marriage bans in several states.
This past Friday, an Arkansas
judge ruled that states ban void.
On Wednesday, a federal court
judge in Idaho followed suit. An-
other half-dozen states have seen
similar rulings, which are now
before the appeals courts.
The rulings are illustrative of a
wider shift in the countrys ongo-
ing dialogue over gay rights .
Many of the bans being struck
down were once ushered in with
overwhelming public support.
Rarely do gay rights take centre
stage in mainstream U.S. culture
to the extent they have this week.
Even as the rulings on same-sex
marriage were being issued, a
massive portion of TV viewers
were watching another watershed
moment taking place during
the NFLs annual draft.
OMAR EL AKKAD PORTLAND
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
UNITED STATES
From gavel
to gridiron,
ground shifts
for gay rights
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
U OF SASK.
Professors
firing sparks
freedom of
speech debate
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HOCKEY NHL PLAYOFFS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Montreal Canadiens erupt in celebration at the end of Game 7 in Boston Wednesday. ASSOCIATED PRESS
Fast and furious
HABS WIN SERIES 4-3 Agility, cunning, speed overcome brute strength
as the Montreal Canadiens defeat the Boston Bruins 3-1 in Game 7 SPORTS
AUSTERE. AWE I NSPI RI NG.
Dedication ceremony 9 The National September 11
Memorial Museum is unveiled in New York
FOLIO, PAGES A6-7
China, Page 9 Gay rights, Page 12 Professor, Page 4
Anti-terror law, Page 5
UKRAINE
Canada takes new tack on
Russia as gunmen target vote
As pro-Russian fighters in
Donetsk seize control of a key
Ukrainian election office and
vow not to allow the countrys
May 25 vote to proceed, Ottawa
asks business leaders to avoid
travelling to Russia in an effort
to isolate the Putin regime over
its Ukraine aggression.
News, Page A9
Report on Business, Page B1
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It started as a relatively small-scale conflict between the citys building trade
and metal shop workers. But set against a backdrop of massive unemploy-
ment, inflation and tensions remaining from the 1917 Russian Revolution, it
quickly exploded into a general strike. To protest the refusal by employers to
negotiate with unionized workers, supporters put down their tools at 11 a.m.
Within hours, almost 30,000 people walked off the job. Five weeks later, with
Winnipeg crippled, support growing across Canada, and businessmen warning
of a Bolshevik revolution, national police confronted protesters on Bloody Sat-
urday. Two men were killed and 30 injured. Ten strike leaders were charged
with sedition. The strike was broken, but for decades, the union movement
would draw inspiration from the dramatic battle workers waged in Winnipeg.
Mark Hume
MAY 15, 1919
LEWIS BENJAMIN FOOTE/PROVINCIAL ARCHIVES OF MANITOBA
There was a time when Cana-
dians were told if Stephen Harper
got elected, the abortion debate
would be reopened and he would
be an absolutist. He never went
there, but Justin Trudeau did.
Comment, Page 11
TODAYS COLUMNISTS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MARGARET WENTE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Todays high debt loads arent as
dangerous as we once thought
they would be. Things that
seemed apocalyptic five years
ago, we now see as tolerable, if
not desirable.
Report on Business, Page 13
ROB CARRICK
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If you want to understand Bren-
dan Shanahans view of life, un-
derstanding where he grew up is
key. Its an area of Toronto where
losing a fight is okay as long as
you go down swinging.
Sports, Page 1
CATHAL KELLY
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
REPORT ON BUSINESS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jeffrey Jones
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SPORTS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
David Shoalts
James Mirtle
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A MOMENT IN TIME 9
REGULARS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Health, Sudoku, Crossword,
Facts & Arguments and Bridge in
Life
Comics, Obituaries in Sports
Comments, Editorials, Letters,
How to reach us and Weather
at back of news section
A2 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
TENS OF THOUSANDS WALK OUT IN WINNIPEG GENERAL STRIKE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A Wednesday Arts article on
Cannes incorrectly said Atom
Egoyans feature Next of Kin was
selected for the festival 25 years
ago. In fact, that year, Speaking
Parts was selected in the Cannes
Directors Fortnight competition.
Corrections
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THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A A3 NEWS
Canadian speed skater Gilmore
Junio created one of the most
compelling stories of the 2014
Sochi Olympics when he gave up
his spot in the 1,000 metres so
teammate Denny Morrison could
compete. Now his selfless gesture
has been recognized with a com-
memorative medal, crowd-fund-
ed by people from across Canada.
In a ceremony at King Edward
Elementary School in Kitchener,
Ont., on Wednesday, the 23-year-
old Olympian was awarded a Ca-
nadian-crafted medal to honour
his personal sacrifice for the bet-
ter of his team, one which led to
Mr. Morrison earning a silver
medal. Students at the school
were among hundreds of Cana-
dians who donated money as
part of a crowd-sourcing cam-
paign started by a Toronto design
firm.
The idea came from Jacknife
Design, which developed a web-
site with a video and started a
campaign on the crowd-sourcing
website Indiegogo.com. They
quickly realized they werent the
only Canadians totally inspired
by watching Junios tale unfold.
They raised more than $7,500,
far more than required to cover
the costs of materials and speci-
alty craftsmen needed to pro-
duce the medal, while the rest is
being donated to charity. Dona-
tions came from across Canada,
including the King Edward
schoolchildren, who donated loo-
nies while learning about filling
our buckets, a popular motto for
teaching kids about kindness.
To know that what Denny and
I did resonated with Canadians
in a way that they would go out
of their way to show their appre-
ciation is super-humbling, Mr.
Junio said by phone, chilling out
at the Jacknife offices after a day
jammed with interviews. It was
flattering to see how much trac-
tion it got and how many people
supported it. Its very humbling
to be recognized.
The finely crafted medal, con-
ceptualized by designers from
Jacknife, has layers of Canadian
maplewood, silver and gold. In-
scriptions on it, in addition to
the skaters name, read Thanks
from all of us and Made in Can-
ada. Names of all those who
contributed money are inscribed
on the strap.
Mr. Morrison had fallen and
failed to qualify for the 1000m at
the Canadian Olympic trials.
While in Sochi, Mr. Junio opted
to give him his spot in the race,
realizing Mr. Morrison had a bet-
ter chance at a podium finish
than he did. Mr. Morrison re-
sponded with a silver-medal per-
formance.
I always knew Canadians were
good people, but to see that
amazing people went to the trou-
ble to donate and make this
medal really cements that for
me, Mr. Junio said.
Gilmore Junio is presented with a medal at King Edward School in Kitchener, Ont. DAVE CHIDLEY/THE CANADIAN PRESS
APPRECIATION
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Olympic speed skater Junio
receives crowd-funded medal
RACHEL BRADY TORONTO
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Albertas Progressive Conserva-
tive leadership race doesnt offi-
cially begin until Thursday, but
the Jim Prentice campaign team
has already been forced to deny
accusations it is pushing for
merger talks between the Official
Opposition Wildrose party and
the long-governing Tories.
Mr. Prentice still isnt speaking
to reporters, but is expected to
pick up his contest papers from
party headquarters Thursday. His
team denied Wednesday Wild-
rose Leader Danielle Smiths
claim this week that official
but unnamed members of the
Prentice camp urged merger dis-
cussions between the two parties
to smooth the path for a PC re-
election. Mr. Prentices campaign
team called on Ms. Smith to
reveal the names of those who
made contact with her party.
Neither Jim nor anybody on
the team has made any overt-
ures whatsoever either directly
to Danielle or to anybody on her
team, Prentice campaign co-
chair Jay Hill said Wednesday.
Speaking to reporters Wednes-
day, Ms. Smith clarified earlier
comments that suggested she
was approached by Mr. Prentices
team directly. She said a few
weeks ago a person who used to
be a staffer for Mr. Prentice
when he was a federal cabinet
minister contacted someone in
her inner circle. The person was
told to float the idea of merger
talks in advance of the 2016 pro-
vincial election and gauge her
reaction. Ms. Smith said she told
the member of her inner circle
to tell Mr. Prentice: Absolutely
not interested. She would not
reveal any names.
Ms. Smith said he should be
speaking for himself instead of
through backroom intermedi-
aries. Were not the least bit in-
terested in clearing the way for
him to be able to waltz into the
premiers chair without oppos-
ition, she said.
Mr. Prentice has attracted the
endorsement of Alberta cabinet
ministers, and is the presumed
favourite in the race that will see
a new PC party leader and pre-
mier crowned in September.
However, with Alberta small-c
conservatives leaning toward the
Wildrose in recent polls after a
series of PC spending scandals,
the Opposition party has taken
pains to point out ties between
Mr. Prentice and the former Red-
ford administration.
Asked about Mr. Prentices
thoughts on a Wildrose-PC merg-
er, Mr. Hill said that question
should be put to him if he wins
the leadership race. Were not
talking about that, he said.
The charge from Ms. Smith
came after two other potential
leadership candidates stated
they have been pressed to step
aside. Again, the Prentice cam-
paign team said no strong-arm-
ing came from them.
Both of the likely candidates
were reluctant to speak on the
issue Wednesday. Ric McIver,
who resigned from cabinet and
announced his intention to enter
the race this month, told the
Sun News Network Monday that
people on his [Mr. Prentices]
behalf have been trying to talk
people out of running.
On Wednesday, just before a
cross-Alberta tour to promote
his leadership bid, Mr. McIver
refused to answer questions
regarding whether he had been
pressed by anyone or not.
Labour Minister Thomas
Lukaszuk has not announced his
intentions but is expected to
enter the race in the weeks
ahead. The Edmonton MLA said
Wednesday overzealous Pren-
tice supporters, but not mem-
bers of the official campaign
team, urged him not to enter the
race.
ALBERTA
Prentice starts leadership race
by denying merger accusations
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
KELLY CRYDERMAN CALGARY
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Neither Jim nor anybody
on the team has made any
overtures whatsoever either
directly to Danielle or to
anybody on her team.
Jay Hill
Prentice campaign co-chair
Show her shes the one.
Please visit our store at 101 Bloor Street West, Toronto
416.967.7201 | 800.463.0571 | www.royaldeversailles.com
RoyalDeVersailles | RdeVersailles
Show her shes the one.
A4 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
tgam.ca/
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GLOBE
UNLIMITED
NEWS
When Provost Brett Fairbairn
read The Silence of the
Deans, he arranged a Wednes-
day morning meeting with Dr.
Buckingham. It lasted less than
30 seconds.
He handed me a letter that
said I was fired, my tenure was
taken away, my benefits were
taken away, Dr. Buckingham
said. I was expecting a repri-
mand. I couldnt believe they
fired me over something like
this.
Dr. Buckinghams staff at public
health has been told not to talk
him, he said. His peers at the uni-
versity and other universities,
too have called or e-mailed
their support. Some admitted
they were instructed not to talk
to Dr. Buckingham.
In the termination letter, Dr.
Fairbairn said Dr. Buckingham
had demonstrated egregious
conduct and insubordination,
adding that Dr. Buckinghams
relationship with the university
was irreparably damaged.
The University of Saskatche-
wan has high expectations of its
senior leaders to support the uni-
versitys directions and to lead
their implementation, Dr. Fair-
bairn said. Top among current
priorities are the universitys
TransformUS initiatives. Leaders
have opportunities to express
personal opinions in leadership
discussions. Once decisions are
made, all leaders are expected to
support the universitys direc-
tions.
Dr. Buckingham responded by
saying he didnt think deans
should be muzzled. It is a univer-
sity. We should be able to have
discussions. My staff has been
told not to talk to me or theyll
be fired.
Dr. Buckinghams termination
letter was sent to the provincial
government and read by the
NDP. The universitys statement
noting that all school leaders are
expected to publicly support the
schools decisions was also read.
It created a lively debate.
NDP Leader Cam Broten argued
the provincial government needs
to know what is happening at the
university. Advanced Education
Minister Rob Norris has said
issues of organization and renew-
al are the purview of the uni-
versity. He added that the
accreditation [of the school of
public health] is not at stake.
The university is planning to
merge public health with the col-
lege of dentistry under the col-
lege of medicine. Dr. Buckingham
insisted it was better to keep the
three schools separate, especially
since public health had recently
earned international accredita-
tion. Why complicate it by
bringing in dentistry and public
health when we have very strong
independent schools? he wrote.
Dr. Buckingham has spent 40
years in academics and has
worked in hospice care. He was
appointed dean of Public Health
at the U of Saskatchewan in 2009.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
With a report from The Canadian
Press
FROM PAGE 1
Professor: Faculties to merge
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Progressive Conservative Leader
Tim Hudak is pledging to pass
legislation capping government
spending increases at the same
rate as GDP growth to ensure
Ontario never again runs a budg-
et deficit. And he detailed
Wednesday how he would make
a string of cuts axing every-
thing from tuition rebates for
university students to tax credits
for senior citizens to balance
the books in two years.
The moves solidify Mr. Hudaks
position as one of the nations
most hawkish fiscal conserva-
tives, diametrically opposed to
the stimulus-spending policies of
Liberal Leader Kathleen Wynne.
We need to do this, Mr.
Hudak told a mostly Tory
audience as he launched his plat-
form at a downtown Toronto
hotel. We need to have some-
thing in place to ensure that
government stays at an afforda-
ble level. We have to have those
restrictions on government so we
dont get into a deeper mess
down the road.
Mr. Hudak is banking his tough
talk will motivate his base and
cast him as the one person hon-
est enough to tell voters exactly
what it will take to wash away
the provinces red ink. Ms.
Wynne is promising to balance
the books in three years, but her
plan depends in large part on
economic growth; NDP Leader
Andrea Horwath, meanwhile,
has released virtually no plan at
all.
But Mr. Hudaks bold ideas car-
ry significant risks. They put him
far outside the mainstream
even Conservative Prime Minis-
ter Stephen Harper racked up a
deficit to help dig the country
out of the recession and add
fuel to his opponents accusa-
tions he would throttle growth
by taking money out of an al-
ready shaky economy.
There is a clearer and clearer
choice between the plan we are
putting forward and the set of
dangerous ideas that Tim Hudak
is putting forward that will push
us back into recession, Ms.
Wynne said Wednesday in the
university town of Guelph.
Ms. Horwath, who promised
Wednesday to appoint a new
cabinet minister tasked solely
with finding budget savings,
called Mr. Hudaks plan divi-
sive and said it would harm
seniors and students.
Mr. Hudak, however, contends
his proposed corporate tax
reduction, which would bring
the rate from 11.5 to 8 per cent,
will more than offset the effects
of his budget cuts by attracting
new investment.
He also pointed out that some
of his proposed cost savings were
taken straight from the Don
Drummond report, commis-
sioned by Dalton McGuinty, Ms.
Wynnes Liberal predecessor.
Among other measures, Mr.
Drummond recommended doing
away with the 30-per-cent tuition
rebate and freezing the Ontario
Child Benefit, which Ms. Wynne
is instead planning to increase.
Some of these choices were
easy. Most of them were pretty
hard, Mr. Hudak said. But were
in a world of limited options.
Economist Donald Savoie said
the Tory Leaders pledge to never
run a deficit, no matter what the
economic circumstances, is not
wise.
Even the most free market
advocate would be very hesitant
to commit to no deficit financ-
ing, said Dr. Savoie, a public pol-
icy expert at the University of
Moncton.
Mr. Hudaks rationale for stim-
ulating the economy with tax
cuts while slashing government
spending does have some histor-
ic precedent, he said, pointing to
Margaret Thatchers economic
policies of the 1980s. But he cau-
tioned that she paid for those
tax cuts by running deficits.
To think that youre going to
cut spending, lower taxes and
the deficit will whistle away I
think theres enough evidence
thats a pretty risky prescrip-
tion, he said.
Mr. Hudaks platform also pro-
vides a blueprint for nearly every
policy area, including allowing
pension plans to invest in
government enterprises; getting
universities to focus on more
practical programs tailored to
the needs of the job market; and
putting more emphasis on math
teaching in grade school.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
With a report from Kaleigh Rogers
ONTARIO ELECTION
Hudak banking on tough talk to motivate base
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADRIAN MORROW TORONTO
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NDP Leader Andrea Horwath greets seniors in St. Catharines, Ont. on Wednesday. DARREN CALABRESE/THE CANADIAN PRESS
D
avid Lazenby, deputy fire
chief in London, Ont., was
convinced that the future of fire-
fighting was not in actually fight-
ing fires, but in preventing them.
But how do you predict where
a fire might occur? Laying out
fire data on a map, certain pat-
terns jump out.
To be quite frank, low income,
low education levels, young age,
they all play a part in who is
more likely to have a fire, Mr.
Lazenby said. If you look at the
map, you know where your hot
spots are, pardon the pun.
The crucial building block for
this kind of data mapping is the
Canadian census, beset by con-
troversy ever since the Conserva-
tive government chose to kill the
mandatory long-form portion
and replace it with the voluntary
National Household Survey. Crit-
ics and many experts say the
NHS is a far less accurate tool. Re-
sponse rates varied between
groups and tended to skew to the
wealthy.
When the results of the 2011
NHS were published, Statscan
withheld data at the smallest,
most detailed geographic level,
known as the dissemination area
(DA) a neighbourhood-type
unit equivalent to about 250
households because it couldnt
vouch for its reliability. But its
that granularity that agencies
such as the London Fire Depart-
ment depend on to make
informed decisions about the
services they provide.
Mr. Lazenby has turned to a
product made in the private sec-
tor that maps many of the same
variables once reliably done by
Statscan. Environics Analytics, a
Toronto company, purchased tax
filer data from the government,
as well as statistics on immigra-
tion arrivals and the unpublished
DA level data from Statscan, to
produce something that at least
resembles the level of detail from
the old long-form census.
Theyre selling the national
data set, called CensusPlus, for a
few thousand dollars. Their main
customers are municipalities that
want better neighbourhood-level
information for planning purpos-
es, and businesses that want to
understand the local clientele.
Were not saying we didnt
need the mandatory census or
that these data would be as good
as if Statistics Canada had done a
mandatory long-form census, but
businesses absolutely rely on in-
come and ethnicity data for small
areas and Statscan didnt release
them, said Jan Kestle, president
of Environics Analytics.
Its easier to do when youre
only five years out from a [man-
datory long-form] census. In five
years time, were going to either
need more mandatory questions
or were going to need better
access to good quality adminis-
trative data.
Most people use the companys
data in conjunction with a map-
ping tool and segmentation ana-
lysis, which sorts the population
into lifestyle categories such as
Middleburg Managers and
Young Digerati, to better under-
stand their habits and tastes. A
library, for example, found that
despite having a large population
of senior citizens, programs
advertised to seniors were a
bust. Having looked more closely
at their income and lifestyle data,
they targeted the same group as
mature adults and had much
more success.
Often, the real power is in the
melding of the data. They know
things about their users, but not
their neighbourhood, then they
marry them, said Doug Norris,
chief demographer at Environics
Analytics.
Robert Dalgleish, an executive
director at the United Church of
Canada, is eagerly awaiting new
data sorted down to the DA level.
He said more than 500 local con-
gregations in the church use this
kind of data to better understand
the areas they inhabit. One puzz-
ling finding was that for every
identified member of the United
Church in a congregation, there
are nine others living within a
few kilometres who never attend
a service.
The data doesnt give us an-
swers, but it gives us really good
questions, Mr. Dalgleish said. It
really allows congregations to
drill down into their communi-
ties.
Mr. Lazenby said using the
tools has had a big impact on the
effectiveness of the fire services
public-education campaigns.
Structure fires were down by 30
per cent last year, and he attrib-
utes much of that success to a
smarter, better targeted aware-
ness scheme.
Were slowly getting more so-
phisticated about recognizing
who our customers are at 3
oclock in the morning, he said.
Who are the ones having the
fires? How do we best commun-
icate to them?
RESEARCH
Toronto company uses information purchased from the government to map neighbourhood-level information for organizations
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JOE FRIESEN
DEMOGRAPHICS REPORTER
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-profits benefiting from data access
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THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A A5 NEWS
QUEBEC
Ex-minister probed
over party donations
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Montreal A former Liberal
transport minister who spent
seven years in the department in
various capacities couldnt
explain Wednesday why con-
struction companies heavily
donated to her party.
Julie Boulet also insisted in tes-
timony at the Charbonneau
Commission there was no favour-
able treatment for those who did.
Ms. Boulet, who was junior trans-
port minister between 2003 and
2007 and transport minister from
2007 to 2010, became the first sit-
ting provincial politician to take
the stand at the corruption
probe.
I cant answer you, Ms. Boulet
answered repeatedly, adding, I
followed the rules.
The Canadian Press
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SASKATCHEWAN
Bank, office stand in
after hospital closes
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Maple Creek, Sask. A bank
building and a government office
are standing in for a southwest-
ern Saskatchewan hospital that
has been shut down.
A new hospital in Maple Creek,
Sask., is about five months from
opening, but the old facility had
to shut its doors this week
because the roof was leaking.
The hospitals clinic has been
moved into an old Royal Bank
building, while lab and X-ray
services have been set up in a
SaskEnergy office, where there is
also a garage for ambulances.
The town has a population of
about 2,400, but the hospital
serves around 8,000 people from
surrounding communities.
The Canadian Press
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ALBERTA
More than 40 dogs
seized from breeder
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calgary The Calgary Humane
Society has seized more than 40
canines of various breeds from
the residence of a veteran dog
breeder.
Humane society spokesman
Brad Nichols said there were
crowding issues as well as con-
cerns that conditions in the
home were inappropriate for ani-
mals. Its a high ammonia level.
Theres feces and urine through-
out the house, said Mr. Nichols,
who added its possible charges
could be laid under animal pro-
tection legislation.
Police and bylaw officers were
called to the residence Tuesday
after a delivery person reportedly
smelled a foul odour coming
from the bungalow-style house.
The Canadian Press
NATIONAL
DIGEST
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Once a member of Canadas so-
called Secret Trial Five, Hassan
Almrei took the Canadian
government to court. Deemed an
al-Qaeda threat after Sept. 11,
2001, and held on a security cer-
tificate for almost eight years, he
eventually won his struggle
against secret accusers and secret
evidence.
I am satisfied that Hassan
Almrei has not engaged in terror-
ism, Federal Court judge Richard
Mosley ruled in 2009. Quashing
the case against Mr. Almrei, the
judge even accused the Canadian
Security Intelligence Service of
breaching its duty of candour to
the Court by embellishing its
case.
But the story did not end there.
New Federal Court documents
obtained by The Globe and Mail
show that Mr. Almrei, a 40-year-
old from Syria, has returned to
court after finding out his appli-
cation for permanent residency
in Canada could be turned down
because of allegations from fed-
eral authorities that he may be
suspected of providing people
with false documents.
My position is its unfair. Its
double jeopardy. Its abuse of
process, said lawyer Lorne Wald-
man, in an interview on Wednes-
day.
Mr. Waldman added that Justice
Mosley will have to rule on the
new issues surrounding his cli-
ent, and whether the govern-
ment can rely on questionable
evidence.
Security certificates were back
in the news on Wednesday, when
Canadas top court ruled against
another one of the group of five,
Mohamed Harkat.
In the early 2000s, CSIS accused
Mr. Harkat, Mr. Almrei and three
others from the Arab world of
being al-Qaeda threats, but they
went to court and blocked the
governments attempts to deport
them.
After the favourable 2009 rul-
ing, Mr. Almrei renewed his
application for permanent resi-
dency. He got refugee status after
coming to Canada in 1999, even
though he had spent several
years in Afghanistan with an Isla-
mist fighting faction during the
civil war.
CSIS alleged this was akin to
being part of al-Qaeda. Mr. Alm-
rei has always denied it.
In May, 2010, Mr. Almrei sued
the federal government alleging
negligent investigation and false
imprisonment.
In an affidavit related to his
immigration application, he says
that, two years later, he bought a
condo, but he got a letter from
his bank, TD Canada Trust, indi-
cating it might cancel his mort-
gage to comply with federal
regulations and economic sanc-
tions.
That fall, he was summoned to
an immigration office in Scarbo-
rough for an interview with CSIS
officials about his immigration
application. Mr. Almrei says he
was asked how he felt about the
revolt against Bashar al-Assad in
his homeland.
Mr. Waldman wrote CSIS to ask
why they were back on the case.
Federal Court documents show
the agencys leaders replied that
immigration officials had asked
for a background check on Mr.
Almrei. CSIS will process this
request as expeditiously as possi-
ble, reads a June, 2012, letter
from a CSIS deputy director,
Andy Ellis.
The next year, as Mr. Almrei
was preparing to go to court to
speed things up, he got a letter
from Canadas border agency.
The Sept. 6, 2013, letter explained
that he could be considered inad-
missible under a legal clause
blocking individuals involved in
people smuggling, trafficking in
persons or money laundering.
The allegations, first made in
2001, are that, before his security-
certificate ordeal, Mr. Almrei got
a false Canadian passport for a
traveller from Afghanistan who
also became an al-Qaeda suspect
after Sept. 11.
No federal agency has found
Mr. Almrei inadmissible yet. The
process is halted while he argues
in Federal Court that this is a
rehash of the security-certificate
case.
IMMIGRATION
Secret Trial defendant back in court
Hassan Almrei, cleared of terrorism charges, faces new allegations barring his request for residency
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
COLIN FREEZE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
It was the first major test of a
revamped immigration law
meant to protect Canada from
foreign terrorists and criminals. It
was also a test of how the
Supreme Court, with a majority
of its members appointed by
Prime Minister Stephen Harper,
deals with the balance between
protecting national security and
maintaining civil liberties.
The law provides for public
court hearings and secret ones. It
was revised by a minority Con-
servative government in 2007
after the Supreme Court, then
mostly made up of Liberal
appointees, had struck it down
over excessive secrecy.
In the earlier version of the law,
the suspected terrorist was not
permitted legal representation in
the secret hearing a fatal flaw,
the Supreme Court had ruled.
The court had pointed to the sit-
uation in Britain, where special
advocates with security clearanc-
es were permitted to represent
the suspects in the secret hear-
ings, and the Conservative
government set up such a sys-
tem.
The Harkat case, using a pro-
cess for deporting terror suspects
that long predates Sept. 11, 2001,
was a veritable TV miniseries of
ups and downs.
There were findings of abuse of
process against the Canadian
Security Intelligence Service, the
countrys civilian spy agency,
over a failed lie-detector test of
an informant that CSIS kept from
Mr. Harkats lawyers. There was
the destruction of CSIS docu-
ments. And there was the first-
ever secret hearing of the
Supreme Court, at the request of
the government. The court said
Wednesday that the secrecy was
unnecessary, and the hearing
should have been held in public.
The ruling was released in the
shadow of a public dispute in
which Mr. Harper has accused
Chief Justice McLachlin of trying
to have an inappropriate conver-
sation with him about a case. The
Chief Justice and representatives
of the legal community have said
the charge is false.
Chief Justice McLachlin has
often stressed the importance of
a formal process of dialogue be-
tween the court and Parliament,
but of late, with the court hand-
ing the government five crushing
defeats since March, the dialogue
has seemed one-way. In this case,
Parliament had made changes to
the law as proposed by the court
in the 2007 ruling, also written by
the Chief Justice, and it easily
withstood a court challenge.
However, the courts ruling
gave the government only some
of what it wanted. The security-
certificate system is imperfect,
Chief Justice McLachlin said, and
judges have the responsibility to
use their discretion to keep the
hearings fair for the suspected
terrorists and if not possible, to
call a halt to the proceedings.
FROM PAGE 1
Anti-terror law: Parliament made changes proposed by top court
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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Mohamed Harkat and his wife, Sophie Lamarche Harkat, in Ottawa on Wednesday. ADRIAN WYLD/THE CANADIAN PRESS
9
A6 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 NEWS
Folio: National September 11 Memorial Mus
A 11-metre steel beam, right, the
last such fragment removed from
Ground Zero, sits inside the
National September 11 Memorial
Museum. The beam is next to a
portion of the World Trade Centers
slurry or retaining wall, the
subterranean monolith that vitally
withstood the disaster and was
claimed by New Yorkers as an
emblem of resilience. Below, a
detail of the graffiti and memorials
to the dead that cover the beam.
A Fire Department of New York
truck, right, belonging to Ladder
Company 3, crushed when the
World Trade Center towers fell. Each
member of the responding company
died in the north tower, among the
people memorialized in the museum
set to open on May 21.
Bottom: Fragments of the fuselage
of American Airlines Flight 11, which
slammed into the World Trade
Centers north tower at 8:48 a.m. on
Sept. 11, 2001. All 92 people aboard
Flight 11 died, and countless more
perished when the north tower
collapsed less than two hours later.
I
ts hard to enter the new National September 11
Memorial Museum without a sense of forebod-
ing.
For anyone with memories of that day in 2001, a
visit requires you to return to a time youre not sure
you want to relive. Its perhaps fitting that seeing
the museum involves a slow descent, via ramps.
The main exhibits are seven storeys below ground
in the structural cavity where the World Trade Cen-
ter towers once stood.
The museum, which opens to the public on May
21, is austere and striking, much like the memorial
next to it. You may find yourself walking slowly
through its spaces, whether out of apprehension or
awe. The mind struggles to grasp the enormity of
the towers and the destructive power of that day.
One of the first artifacts is a section of steel, bent
and warped, from the point of impact of the first
plane. Another is a fire truck that was half crushed
when the buildings collapsed.
In its retelling of what happened on Sept. 11, the
museum immerses visitors in sounds and images.
There are television clips, photographs, voicemails
and transmissions by first responders. To make
sense of the overlapping events, there is an impres-
sive timeline documenting the attacks on New York
and the Pentagon, together with the crash of Flight
93 in Pennsylvania.
AUSTERE.
STRIKING.
ASTONISHING.
EXCRUCIATING
JOANNA SLATER NEW YORK
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A A7
seum
NEWS
An electric water heater on board
United Flight 93, left, that
passengers attempted to use in an
assault on its hijackers. Flight 93
crashed into a field in Pennsylvania,
killing all 45 people aboard, after
some of the passengers tried to
regain control.
Below: The watch and business card
of Todd Beamer, one of the
passengers who led an assault on
hijackers that brought down United
Flight 93. The museums collection
has many small personal effects of
those who died on Sept. 11, artifacts
that are among the most poignant.
Middle: The wallet of Giovanna
Gambale, a 27-year-old woman who
was one of 658 Cantor Fitzgerald
employees who died in the Sept. 11
attacks. Her wallet was found on
the roof of the Marriott Hotel
nearby. PHOTOGRAPHY BY DAMON
WINTER/THE NEW YORK TIMES
Above: The crushed helmet of Kevin
Prior, a New York City firefighter
killed on Sept. 11, 2001. Mr. Prior, a
firefighter with Brooklyns Squad
252, was responding to a mayday
call by other firefighters who were
experiencing trouble breathing. He
is believed to have been on a floor
in the 20s in the north tower when
it collapsed.
The result is both astonishing and excruciating.
Numerous times, I felt rooted to where I stood, fro-
zen by what I was seeing or hearing. There is the
voice of Mohammed Atta, one of the hijackers, tell-
ing passengers to stay quiet and not to make any
stupid moves. There are the projected images of
people jumping or falling from the towers. And
there is the video taken by an American astronaut
from space, where he points out the billowing
smoke but tries to reassure New Yorkers that their
city is still beautiful from where he sits.
A separate part of the exhibition is devoted to the
lives of the nearly 3,000 people who died on Sept. 11
and in the 1993 bombing of the World Trade Center.
That portion will open after the museums dedica-
tion ceremony on Thursday, an event for family
members, survivors, first responders and recovery
workers. U.S. President Barack Obama is also sched-
uled to attend.
Alice Greenwald, the museums director, said
Wednesday that she hoped the museum would
leave visitors with an appreciation of the human
capacity for rebuilding and resilience. It does, but
not so much through the exhibits themselves.
The ascent to ground level accomplishes it even
more effectively. Emerging from the cavern into the
museums atrium, there is daylight and a glimpse
of trees. Just beyond sits New York on a cloudy May
afternoon tourists, cops, pigeons, garbage trucks,
the sounds of construction saws and car horns, dis-
tant sirens and traffic.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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A8 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 NEWS
First Nations leaders are meeting
to decide whether a controver-
sial education bill can be
redrawn in ways they find accep-
table and how to negotiate those
changes with the federal Conser-
vative government.
Wednesdays Confederacy of
Nations meeting the first such
gathering in a decade was
called, not by the Assembly of
First Nations (AFN), but by
chiefs from across the country
who said they wanted to con-
vene in the forum that exists, in
part, to address emergency
matters.
The Confederacy gathering will
be blended on Thursday with an
AFN education committee meet-
ing about the First Nations Con-
trol of First Nations Education
Act, said Stan Beardy, the AFNs
regional chief for Ontario. Mr.
Beardy called for the Confedera-
cy session two weeks ago.
I think whats important with
the Confederacy of First Nations
is that it gives the voice to the
grassroots, Mr. Beardy said. The
group is a special forum of chiefs
from every region with represen-
tation based on population.
The education act has been on
hold for more than a week, since
shortly after Shawn Atleo re-
signed as AFN national chief
over his support of the bill. Many
native leaders said the law
would allow the government to
interfere in their schools.
But the chiefs who are against
the legislation also say they real-
ize they cannot just walk away
from the problems with educa-
tion on reserves, where, on aver-
age, just slightly more than one
in three students graduate from
high school.
The confederacy was held on
the same day as First Nations
demonstrations in several Cana-
dian cities, including Ottawa, to
protest against the education act,
a bill that targets contraband
tobacco, and the governments
refusal to call an inquiry into the
large number of murdered and
missing aboriginal women.
Obviously, we are going to
reject the [education] bill, said
Isadore Day, the chief of the Ser-
pent River First Nation in north-
ern Ontario. But if we are going
to say no, we have to have a sub-
stantive reason for that. And we
have to have a way to follow up.
Some chiefs say the legislation
could be amended to make it
workable. And they are trying to
determine who among them
should represent the First
Nations in negotiations about
the bill.
Anything decided this week
will have to be approved at a
special chiefs assembly sched-
uled for May 27.
The Confederacys revival after
a decade of dormancy comes at
a time when the AFN is in transi-
tion after the resignation of Mr.
Atleo and amid growing dissatis-
faction with the representation it
has provided.
Don Kelly, an AFN spokesman,
said he believes it is healthy
for chiefs to consider how the
AFN should function, adapt and
possibly evolve. Any time First
Nations are gathering to discuss
key issues and certainly at
times like this, which is not a
typical moment for First Nations
its important, and it should
happen, he said.
Peter Kulchyski, a native stud-
ies professor at the University of
Manitoba and a founding mem-
ber of the aboriginal activist
group Defenders of the Land,
said the return of the Confede-
racy model signals that things
are very much in play at the
AFN, including maybe even the
survival of the AFN.
FIRST NATIONS
Leaders weigh changes to controversial education act
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GLORIA GALLOWAY
KATHRYN BLAZE CARLSON
OTTAWA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The head of one of Canadas
major railways is firing back at
the Conservative government,
saying Agriculture Minister Ger-
ry Ritz has lost perspective
and is vilifying railways in re-
sponding to the Prairies multi-
billion-dollar grain backlog.
Canadian National Railway Co.
chief executive officer Claude
Mongeau made the comments
Wednesday to a Senate commit-
tee considering Bill C-30, aimed
at easing a backlog largely the
result of last years bumper crop
and an unusually harsh winter.
The bill sets minimum levels
of grain that rail companies
must ship each week, opens up
Canadas rail lines to some for-
eign competition and creates a
provision that allows grain ship-
pers to seek cash compensation
from railways in certain cases.
Railways firmly oppose the
bill, arguing it wont actually
lead to more grain being
shipped and will create new
bureaucratic headaches. But Mr.
Ritz has largely blamed railways,
and Mr. Mongeau fired back
Wednesday.
During the winter, there was
a tsunami of finger-pointing
looking for the culprit and we
lost control of the agenda.
Because it was more important
to find the culprit than it was to
look at the facts, Mr. Mongeau
said, later adding: I think the
ministers lost perspective and
has gone too far.
Railways are already shipping
record levels of grain and
should be congratulated, he
said.
Theres no point blaming the
railroads for a tough winter and
imposing legislation thats not
well thought through, he told
reporters afterward. Instead we
are positioned as the culprit and
we have been punished [with
government saying], Were
doing something, were going to
legislate. Its not helping move
more grain.
Conservative senators took
issue with his testimony If I
was the minister of agriculture, I
dont think Id take this very
well, Jean-Guy Dagenais said
and the committee chair asked
for more parliamentary lan-
guage from the rail executives.
Its useless to complain. You
should take the necessary steps
to deal with this, Conservative
Senator Ghislain Maltais told Mr.
Mongeau. If the minister
decided to come down with leg-
islation, its because there was a
problem to solve.
Others pointed a finger at CN
in testimony Wednesday. Ken
Eshpeter, CEO of the small Bat-
tle River Railway, said CN failed
to adequately respond to the
cold winter, while Rick White of
the Canadian Canola Growers
Association said the backlog has
clearly demonstrated that the
railways operate in a privileged
position.
Last years bumper crop of 76
million tonnes left railways un-
der pressure to ship 50 per cent
more grain for export than in an
average year, they say. Mr. Mon-
geau said Mr. Ritzs office was
still, as of last fall, substantially
underestimating the harvest. A
cold winter forced railways to
run shorter trains, but theyve
since ramped up shipments
again to record levels.
Its not a government order,
its the fact winter broke away.
Were moving a new record, Mr.
Mongeau said.
Bill C-30 has passed the House
of Commons and is expected to
become law soon. Mr. Mongeau
said he expects his testimony
wont change the bill, but want-
ed to seize the chance nonethe-
less.
You take the forums that you
have, he said.
TRANSPORTATION
CN fires back over grain-backlog bill
Agriculture minister accused of looking for culprits and ignoring facts such as the harsh winters effects on moving a bumper crop
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
With the long, harsh winter over, CN says it is moving grain at record speed. ANDREW WALLACE/REUTERS
JOSH WINGROVE OTTAWA
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
One of Canadas wealthiest fami-
lies is directing some of its for-
tune toward speeding up the
quest for cures for Alzheimers,
Parkinsons and other diseases
that ravage the aging mind.
The W. Garfield Weston Founda-
tion is set to announce formally
on Thursday the creation of the
Weston Brain Institute, a $50-mil-
lion fund to support high-risk,
high-reward Canadian research
into neurodegenerative diseases.
The institute is believed to be
the largest privately financed ini-
tiative targeting brain disease in
Canada.
Its aim will be to provide grants
swiftly to doctors investigating
ideas that could mean significant
progress toward treatments or
cures for brain ailments.
Theres a bias for action and a
sense of urgency so that the pro-
cess and the evaluation and the
awarding of funds is much more
rapid than is traditionally the
case, said Andres Lozano, chair
of the institutes scientific advis-
ory board and the neurosurgery
department at the University of
Toronto. Were looking for things
that are really going to be revolu-
tionary.
Best known for owning Loblaw
Companies Ltd., the Weston fami-
ly has already doled out $13-mil-
lion in grants to 28 different
brain-related research projects
through its charitable foundation,
according to Alexandra Stewart,
the brain institutes executive
director.
Now it is formalizing and mak-
ing public its plan to fill a gap in
the Canadian research-funding
landscape with the new institute.
W. Galen Weston, chairman of
the familys foundation and exec-
utive chairman of George Weston
Ltd., which controls Loblaw,
Shoppers Drug Mart and a slew of
other companies, said the foun-
dation was shocked when it
began looking into neurodegen-
erative diseases and discovered
how little progress had been
made in combatting them.
Thankfully, conditions like
heart disease, diabetes and stroke
are doing much better, he said by
e-mail. In our analysis, we dis-
covered that there are no signif-
icant gains for dementia. Experts
told us that there is not yet a cure
and no way to slow down diseases
like Alzheimers, Parkinsons and
ALS [amyotrophic lateral sclero-
sis, often referred to as Lou Geh-
rigs disease].
Nearly three million Canadians
were directly affected by neuro-
degenerative diseases of aging in
2013, either as patients or caregiv-
ers, according to the institute.
That figure is expected to mush-
room as the population ages.
The scale of the problem is tru-
ly frightening, said Sandra Black,
a cognitive neurologist at Sunny-
brook Health Sciences Centre
who is working on several
research projects funded by foun-
dation.
We have to cure these diseases,
or we at least have to control
these diseases, or I dont even
want to get old, she said. Its not
going to be pleasant. Theres not
going to be enough care [givers],
theres not going to be enough
funding to take care of all of us.
Among the investigations in
which Dr. Black is involved is a
study of a focused ultrasound de-
vice designed to allow repeated
openings of the blood-brain bar-
rier, a kind of biological gate that
blocks doctors from treating the
brain directly.
The work is an example of the
kind of made-in-Canada break-
through the institute is eager to
back especially considering
cures and even treatments are
still a long way away, Dr. Black
said.
HEALTH
Weston family to fund
new brain research institute
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A A9 NEWS
Gunmen from the newly pro-
claimed Peoples Republic of
Donetsk have taken another step
toward snapping their region off
from the rest of Ukraine, seizing
control of a key Central Election
Commission office and declaring
that the countrys May 25 parlia-
mentary and presidential vote
will not be held here.
The election now looms as the
next flashpoint in Ukraines
worsening political crisis. Sepa-
ratists in the oblasts, or prov-
inces, of Donetsk and Lugansk
have vowed the votes wont be
held in either region, which
together account for almost 15
per cent of Ukraines precrisis
population of 46 million.
However, Ukraines interim
government says the vote seen
as key to keeping the country
from further fracture must go
ahead under any circumstances.
Its the first election since the
Moscow-backed government of
Viktor Yanukovych was ousted
in February by pro-Western pro-
testers, a revolt that many Rus-
sian-speaking Ukrainians believe
has left the country without a le-
gitimate government.
Nine pro-Russian fighters, car-
rying AK-47 assault rifles and
Makarov pistols, burst into a
local government building
Wednesday in the city of
Donetsk that was to serve as a
nerve centre on election day. A
witness told The Globe and Mail
that the gunmen instructed staff
to leave the premises and that
the election was illegal since Mr.
Yanukovych whose five-year
term was due to expire in 2015
was still president.
The camouflage-clad gunmen
arrived at the District Election
Commission No. 42, on Artyoma
Street in downtown Donetsk, at
the same time as a team of for-
eign observers was visiting to
check on preparations for the
May 25 vote.
I tried to walk past them and
they blocked me and said You
cant come this way, said one
foreign observer, who spoke on
condition of anonymity, since he
was not authorized to speak to
media. They showed a piece of
paper from the Donetsk Peoples
Republic which said that the
[Election Commission] was now
closed and that since there al-
ready is a president of the coun-
try, theres no need to have the
elections to be held, and to go
home and leave all our things.
The same building on Artyoma
Street, which oversees the opera-
tion of 88 polling stations cover-
ing some 150,000 voters, was
used by the separatists during a
Sunday referendum that saw the
rebels claim 89-per-cent support
for the establishment of a sover-
eign Donetsk. The Central Elec-
tion Commission did not help
prepare or oversee that vote,
which interim Ukrainian Presi-
dent Oleksandr Turchynov
slammed as a criminal farce.
The closing of the election
office in Donetsk came as the
Ukrainian government hosted
round-table talks in Kiev aimed
at calming the crisis by discuss-
ing a potential devolution of
powers to the countrys restive
regions. However, the possibility
of a breakthrough seemed slim
since the leaders of the Donetsk
and Lugansk rebels were not in-
vited to join the negotiations.
Mr. Turchynovs government
has alleged that the fighters and
politicians of the Donetsk Peo-
ples Republic get orders and
money from neighbouring Rus-
sia. Moscow annexed the south-
ern region of Crimea following a
controversial March referendum
there.
Those with weapons in hand
who are waging a war against
their own country and dictating
the will of a neighbouring coun-
try will answer before the law.
We will not yield to blackmail,
Mr. Turchynov said. We are
ready to listen to the people of
the east, but they must not
shoot, loot or occupy govern-
ment buildings.
Many believe eastern Ukraine
is now sliding toward civil war, if
it isnt already embroiled in one.
In an interview with Bloom-
berg television, Russian Foreign
Minister Sergei Lavrov said he
didnt see how the May 25 elec-
tion could be held under the
current circumstances.
In east and south of Ukraine
there is a war, a real war, he
said. And if this is conducive to
free and fair elections then I
dont recognize what free and
fair is.
UKRAINE
Donetsk rebels take over election office
Masked gunmen tell workers and foreign observers to leave the polling building, saying the May 25 vote will not go forward
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MARK MacKINNON
DONETSK, UKRAINE
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A man pays respect to pro-Russians killed in fighting in Donetsk, Ukraine, on Wednesday. MANU BRABO/ASSOCIATED PRESS
On any given day, one or two
minders sit in his staircase.
Sometimes another four play
cards in the yard of his com-
pound.
Normally its six to seven peo-
ple, he said.
The situation for critics, or per-
ceived critics, has grown especial-
ly precarious in recent weeks.
After a meeting to commemorate
the killings on June 4, 1989 in
which hundreds, if not more than
1,000, died several prominent
professors, a film critic and one of
Chinas most famous lawyers, Pu
Zhiqiang, were detained. Gao Yu,
a well-known journalist and ac-
tivist, has also been taken away.
This year is the one they are
most nervous about since 2004,
Mr. Hu said. That was the year he
brought flowers to Tiananmen
Square, an act that earned him a
permanent target on his head.
He has been warned he could
face charges of subverting state
power, in part related to his calls
for Chinese people to wear black
on June 4 as a sign of remem-
brance. He repeated that call in an
interview with The Globe and
Mail this week.
The anniversary is a day of
pain in Chinas history, but one
that remains sealed in ice under
the Communist Partys iron cur-
tain.
The only way to fight back, he
said, is to remember even if that
very act is enough to elicit official
threats of 12 years in prison.
In recent months, an outbreak
of terrorism with several attacks
on train stations has put Chi-
nese authorities on edge. But Mr.
Hu also attributes the crackdown
to Chinese leader Xi Jinping, who
is taking harsh measures of
deterrence for maintaining stabil-
ity.
He accused Mr. Xi of taking
over the genes of Slaughter
Deng, a reference to Deng
Xiaoping, the leader who author-
ized deadly force in 1989.
There had, in recent years, been
signs of hope that China was loos-
ening its hold on discussion of the
Tiananmen killings. Near the 2012
anniversary, protesters in three
cities even managed to put up
Tiananmen-related banners and
chanted down with dictatorship
slogans. They were allowed to
vent publicly, unmolested by
security forces.
It seems doubtful they would
meet a similarly velvet-gloved
hand today.
Theres no upside for the
government here to allow espe-
cially outspoken critics to remain
at large in a very sensitive sea-
son, said Russell Leigh Moses,
dean of the Beijing Center for Chi-
nese Studies. Xi and his allies
have made it very clear that they
will make politics from the top
down.
In late 2008, more than 300 law-
yers, activists and journalists
signed Charter 8, a manifesto call-
ing for independent courts and
the end of one-party rule. Produc-
ing such a document in China
today would lead to more serious
punishment, said He Weifang, a
law professor who is one of its sig-
natories.
Activists say the censorship and
detentions are only deepening
dissatisfaction among Chinese,
and hardening their resolve for
change.
Rose Tang, who was also part of
the 1989 protests and now lives in
New York, said she has been
struck, in recent months, by the
number of mainland Chinese
skirting Internet controls to join
Twitter. Direct attacks on the
Communist Party labelling it
the biggest terrorist organiza-
tion and the biggest mafia
gang have been joined by calls
for violent protest. Her own pleas
for non-violence have prompted
angry replies.
This determination to over-
throw the Communist Party, this
is very new, she said. Theres
such a momentum of revolution.
FROM PAGE 1
China: Prominent critics of the government have been detained in recent weeks
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9
Chinese activist Hu Jia is under house arrest. KEITH BEDFORD FOR THE GLOBE AND MAIL
The hunt for more than 200
schoolgirls held captive in north-
ern Nigeria escalated Wednesday,
as searchers deployed 21st-centu-
ry surveillance technology in
tandem with local herdsmen car-
rying bows and arrows.
A British official, meanwhile,
said Nigerias President had
rejected any release of prisoners
in exchange for the girls.
The Islamic militancy Boko
Haram has claimed responsibil-
ity for abducting the girls. The
groups leader, Abubakar She-
kau, has in videos showed girls
he says are the among the ones
abducted from the school recit-
ing Islamic prayers and threaten-
ed to sell them into slavery. In
return for their release, he has
demanded that imprisoned
members of his group be freed.
President Goodluck Jonathan
flatly rejected the proposal
Wednesday during a meeting
with British Minister for Africa
Mark Simmonds.
He made it very clear that
there would be no negotiations
with Boko Haram that involve a
swap of abducted schoolgirls for
prisoners, said Mr. Simmonds.
Doyin Okupe, spokesman for Mr.
Jonathan, didnt respond to calls
or texts seeking comment. Other
members of the Presidents cabi-
net have offered conflicting
opinions on Mr. Shekaus pro-
posal.
A manned U.S. surveillance
plane has been flying sorties
over Nigeria since at least Tues-
day, and the U.S. government on
Wednesday said it has also sent
unmanned reconnaissance
planes. Also on Wednesday, the
British government pledged to
add its own plane to the mix
one equipped with radar that
will allow it to track human
movement on the ground.
France, China and Israel have
also pledged to share intelligence
and satellite imagery, Mr. Jonath-
an has said.
Meanwhile, villagers, farmers
and hunters many of them
roaming the woods armed with
bows and arrows have formed
a network to share tips on where
the girls might be, said Borno
state Governor Kashim Shettima.
Reports from this network in-
cluded people who claimed that
they had seen the girls, he said,
but he didnt know if any of
those reports had been verified.
The girls are thought to be
somewhere across a stretch of
northeastern Nigeria more than
62,000 square kilometres wide,
said Mr. Simmonds. It is a varied
landscape, ranging from vertigi-
nous, cave-pocked and forest-
carpeted mountains, to rolling
savanna and semi-desert. Vegeta-
tion will thicken in coming
weeks with the seasonal rains.
Even if Nigerias foreign part-
ners and local hunters find the
girls, it isnt clear who would
lead the risky rescue operation.
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2014 Dow Jones & Co. Inc.
NIGERIA
Surveillance teams begin search for abducted girls as President rejects trade
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HEIDI VOGT
DREW HINSHAW
WALL STREET JOURNAL STAFF
ABUJA, NIGERIA
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A10 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
I
n the United States, when a person of even the most minor pub-
lic interest is arrested, police and prosecutors often arrange to
stage a humiliating spectacle known as the perp walk. The accused
is frogmarched in front of the cameras in handcuffs, on a contrived
walk into the courthouse. The media are on hand, having been pre-
viously informed of the time and place of the viewing. In the U.S.,
its the norm for an accused to get this treatment. In Canada, its
almost unheard of.
Unlike their American counterparts, Canadian police and prose-
cutors do not hold up their catch, like a fisherman displaying a
prize marlin. They usually bring him in quietly through a side door
or an underground garage. Thats as it should be. Our legal system
is founded on the idea that everyone is innocent until proven
guilty; forcing an accused to go through a perp walk debases the
innocent, warps the justice system and coarsens us all.
This week, three men involved in last years fatal train derailment
and fire in Lac-Mgantic, Que., were arrested and charged. The law-
yer for the train driver, Thomas Harding, had for months advised
police that, should they ever wish to detain his client, a long-time
local resident, he would voluntarily and quietly turn himself in
on request. Instead, on Monday, a Sret du Qubec SWAT team
descended on his home, making a great show of his capture. The
next day, he and the other two accused, railway employees Jean
Dematre and Richard Labrie, were each released on $15,000 bail.
But not before all three were subjected to a rarity in Canada: the
American-style perp walk. All are charged with counts of criminal
negligence causing death in connection with last years accident.
On Tuesday, they were marched, in handcuffs, through an assem-
bled crowd of cameras and into the courthouse.
The presumption of innocence is more than an abstract legal
notion. It is very real, or should be. The purpose of an arrest is
detain someone so they can be charged and brought to trial. It
should never be about humiliation. Nor is it about punishment.
Neither police nor Crown prosecutors have the power to punish.
Only courts get to find guilt and only courts impose punishment.
Unless and until a court has found you guilty, you arent, and the
Canadian justice system should always treat you as such.
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LAC-MGANTIC ARRESTS
No more perp walks
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Spectacle vs. justice
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I was outraged to see the front-
page picture of the three
employees of Montreal, Maine &
Atlantic Railway being escorted in
handcuffs into court (Lac-Mgan-
tic, May 14).
But then, reading how engineer
Tom Harding was subjected to an
over-the-top arrest sent me into
an apoplectic state: An armed
SWAT team arrived with sirens
blazing and ordered Mr. Harding,
along with his son and a friend, to
lie face-down on the ground in
Mr. Hardings backyard.
Who ordered that spectacle and
for what purpose?
Why wasnt the federal Trans-
port Minister hauled in in shack-
les? The government is the per-
petrator of the Lac-Mgantic dis-
aster for allowing safety to deteri-
orate over the years in the rail
industry.
Mike Brooker, Guelph, Ont.
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These men, presumed innocent
until proven guilty, were hardly a
flight or violence risk. Did the
handcuffs serve any purpose oth-
er than public humiliation?
John A. Smyth, Vancouver
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This was all about spectacle, not
justice. What about the president
of the railway and its directors?
The Lac-Mgantic residents you
quoted are right: These three men
are pawns and scapegoats.
Hlne Anderson, Montreal
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Beyond consultation
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Re A Duty To Consult, But No Veto
(March 14): There is an interna-
tionally agreed standard of proce-
dure when indigenous land, water
and related resources are in play:
free, prior and informed con-
sent (FPIC).
Consider each of these words
and reflect on them in the light of
Canadian practice and experi-
ence. Not a pretty sight.
The current government initial-
ly opposed the International Dec-
laration on the Rights of Indig-
enous Peoples, of which this
clause is a key part. Years after the
declaration was accepted by the
UN, the government grudgingly
endorsed it, reiterating its con-
cern about the FPIC principle.
FPIC addresses a host of issues
affecting the future of First
Nations, as well as environmen-
tal, social and economic issues for
all Canadians. It is also clear Cana-
da lacks an agreed public and
legal consensus on the imple-
mentation of free, prior and
informed consent. How might we
build such a public and legal un-
derstanding and consensus?
A national inquiry might begin
by asking first peoples their
views. Then it should examine
the experience of countries and
native nations which have begun
to implement FPIC. A review of
constitutional and treaty commit-
ments would be essential.
The issue is significant enough
that a royal commission (remem-
ber those?) might be mandated to
lead an inquiry, including public
hearings.
John W. Foster, department of po-
litical science, Carleton University
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Call them terrorists
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Lets call a spade a spade. The
Western press is falling straight
into the Kremlins propaganda
trap by repeatedly calling the re-
bels in Eastern Ukraine pro-Rus-
sian insurgents or Russian-
speaking separatists.
They are nothing more than ter-
rorists financed by Vladimir
Putin, who is trying to break up
Ukraines territorial integrity. No
other democratic Western coun-
try would permit this. The refer-
endum was a sham.
Walter Derzko, Toronto
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Job math: cuts, gains
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While I dont like political plat-
forms with big round numbers (a
promise unfulfilled is an empty
promise), Ontario and Canada do
need to move away from relying
on the public sector as a major
source of jobs very well-paid
jobs (Election By 100,000 Job Cuts
editorial, May 13). You argue
that cutting 100,000 public-sector
jobs will create unnecessary
chaos, that Ontarios economy
has a condition, but [its] far
from being in intensive care and
that PC Leader Tim Hudaks move
is radical and rash.
This sounds like a fear of
change. Ontario is in intensive
care. More and more people are
struggling to make ends meet.
We need a shift in mentality. We
need to embrace or at least be
open to radical change.
Manuel Arellano, Mississauga
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In the U.S., Republicans have
talked of fostering job creators
through tax breaks, privatization
and deregulation since the Rea-
gan era. The job creation that
comes of it is minimum wage,
minimum term and minimum
benefits, because that is how job
creators draw maximum profit.
This model has created an
almost feudal-era gap between
rich and poor and is creeping into
Canadas economy.
Look at the recent use of for-
eign-workers legislation to see
how willingly and quickly the job
creators will turn on Canadian
workers if they can put another
dollar in their own pockets. The
real output of trickle-down eco-
nomics is more people stuck in
the perpetual quagmire of social
assistance. We know this from ex-
perience, so why do we keep hav-
ing these conversations every
election cycle? To fire 100,000
people (thats what cut 100,000
jobs means) earning a living wage
is to force 100,000 more people
into an oversaturated job market.
But the job creators will solve
that, says Tim Hudak. They might
but with part-time, minimum-
wage McMart-jobs.
David Kinahan, Toronto
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Abortion absolutes
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Re Pro-Choice? Thats No-Choice
(May 13): Lorna Dueck misses the
point: She fails to distinguish be-
tween the personal moral beliefs
of an MP and the legal question of
whether abortion should be crim-
inalized.
For Justin Trudeau to insist Lib-
eral MPs should not seek to legis-
late on the basis of their personal
moral beliefs is not anti-demo-
cratic but in full accord with the
nature of Canadian society.
This position does not preclude
discussion of the issues she men-
tions (late abortions, gender-
specific abortions, pregnancy pre-
vention). Rather, it opens the way
to a reasoned discussion where
the simplistic pro-choice/pro-life
dichotomy can be disregarded.
Mark Thornton, Toronto
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The power of none
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Many Ontarians share the urge to
vote none of above in the prov-
inces June 12 election (As Politi-
cians Stump On City Issues, Rural
Urbanites Feel Cut Out May 14).
Liberals? Entirely untrustwor-
thy. PCs? Scary Harrisites. NDP?
Opportunists who defeated the
most left-leaning budget ever.
At the same time, we read that
our planets health has passed the
point of no return (Ice Sheet Col-
lapse Unstoppable Scientists
Warn May 13).
Ill be voting Green.
Donnie Friedman, Toronto
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Wondering? 89 cents
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After the government discontin-
ued the penny, I did a study to see
the effect of rounding. This was a
one-year venture, commencing
May 1, 2013 and ending April 30.
Carefully tracking every applic-
able transaction for my house-
hold over 12 months rounding
applies only to cash purchases I
have realized a profit of 89 cents.
Roger Guitar, Chteauguay, Que.
LETTERS TO THE EDITOR
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I
n the case of Mohamed Harkat, the Supreme Court has come
close to squaring the circle in the difficult matter of security
certificates, but it could not have done so if the government had
not already modified this drastic deportation procedure.
The essential allegation against Mr. Harkat is that he is a terrorist
sleeper agent.
Non-citizens whether tourists or terrorists do not have an
absolute right to live in Canada. The government can imprison a
non-Canadian who is believed to be a threat to national security.
He is then held under a security certificate, with a view to deporta-
tion. But what if he cant be deported?
In the case of Mr. Harkat, an Algerian granted refugee status in
1997, Canada does not want to repeat its mistake in letting the
United States deport Maher Arar to Syria, where he was tortured.
Mr. Harkat might be in grave danger in his home country.
The security certificate is a conspicuous exception to the general
rule that courts and tribunals should be open to the public, and
that accused persons should know the allegations and evidence
against them.
And while the law recognizes a protection for confidential infor-
mants, in cases like Mr. Harkats, the trouble is that the bulk of the
evidence comes from just such informants, who are not available
for cross-examination.
People held under security certificates get only a summary
without elements the government believes would harm national
security or the informants.
Since the numerous court hearings concerning Mr. Harkat and
others, Canada has adopted the British practice of special advoca-
tes for the suspects, who scrutinize the evidence in the closed
hearings, without being able to tell much to their clients.
In a 6-2 split, the majority of the Supreme Court differed with the
minority only on how much confidential sources should be protec-
ted. All eight judges upheld the constitutionality of security certif-
icates.
Mr. Harkat and several other men in much the same shoes
remain in various versions of intrusive house arrest; none are still
in jail. They may never leave Canada.
Security certificates, and suspected terrorists who cannot be
deported but cannot be fully released, are probably all here to stay.
NATIONAL SECURITY SECURITY CERTIFICATES
Supreme Court gives
Harper a victory
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Letters to the Editor should be
exclusive to The Globe and Mail.
Include name, address and daytime
phone number. Keep letters under
150 words. Letters may be edited
for length and clarity.
E-mail: letters@globeandmail.com
PHILLIP CRAWLEY, PUBLISHER AND CHIEF EXECUTIVE OFFICER
DAVID WALMSLEY, EDITOR-IN-CHIEF
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SINCLAIR STEWART, DEPUTY EDITOR
PAUL WALDIE, EDITOR, REPORT ON BUSINESS
JILL BORRA, EXECUTIVE EDITOR
KEVIN SIU, HEAD OF DIGITAL, EDITORIAL
COMMENT
The subject who is truly loyal to the chief magistrate will neither advise nor submit to arbitrary measures JUNIUS
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SCOTT ADAMS, HEAD OF NEWSROOM DEVELOPMENT
GABE GONDA, HEAD OF FEATURES & WEEKEND
NATASHA HASSAN, COMMENT EDITOR
TONY KELLER, EDITORIAL PAGE EDITOR
DEVIN SLATER, HEAD OF EDITORIAL DESIGN
SYLVIA STEAD, PUBLIC EDITOR
EDI TORI AL MASTHEAD
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THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A A11
P
lease forgive me if I sound
confused. It seems like only
yesterday when everybody
warned that if Stephen Harper
and his Conservatives got elect-
ed, he would reopen the abor-
tion debate. It was hidden in his
agenda. If he had his way, wed
be going back to the bad old
days of back alleys and coat han-
gers.
We did elect him, and he never
did go there. But Justin Trudeau
did. The man who promised he
would never dictate party policy
or keep Liberal MPs on a leash
has come out as an abortion
absolutist. He is pro-choice, no
exceptions, period, and anyone
who disagrees wont be welcome
in the party. It is not for any
government to legislate what a
woman chooses to do with her
body, he declared last week.
And here I thought the Liber-
als were the tolerant and diverse
ones.
What drives me nuts about
this issue is that its been cap-
tured by extremists on both
sides. Theyre not interested in
rational discussion, because their
positions are a form of social sig-
nalling. The 20,000-strong pro-
life crowd who show up every
year on Parliament Hill use it as
a way to profess their religious
faith. Mr. Trudeau (and the
NDPs Thomas Mulcair) use it as
a way to tell us they are champi-
ons of womens rights. (Theyre
also hoping they can get nervous
urbanites to believe that only
they stand between us and a
debilitating U.S.-style abortion
war.)
In fact, the far extremes of the
abortion debate (it should never
be allowed versus it should
always be allowed under any cir-
cumstances) are positions held
by next to no one. A strong ma-
jority of Canadians are moder-
ates. Theyre fine with early-term
abortion but not fine with late-
term abortion (after 24 weeks),
unless the mothers health is en-
dangered or the fetus has serious
anomalies. (The territory in be-
tween is contested, and no
doubt always will be.) They
strongly disapprove of sex select-
ion, a practice that some ethnic
communities have brought with
them.
What do Mr. Trudeau and Mr.
Mulcair have to say about these
important exceptions to a wom-
ans right to choose? Nothing.
Thats because their purpose is
signalling, not nuance or debate.
Fortunately, the medical com-
munity reflects the broadly held
consensus view, which means
that in the absence of a law, the
regulatory regime we have in
place probably reflects the kind
of law wed have, if we had one.
The reason we dont have one is
that for 26 years, our federal leg-
islators have been too cowardly
(or wise) to touch the subject.
But the idea that governments
shouldnt legislate abortion, as
Mr. Trudeau asserts, is downright
idiotic. Abortion is legislated
nearly everywhere; even civiliz-
ed countries impose restrictions.
In Germany, its available in the
first trimester, but only after a
woman receives state counsell-
ing that encourages her to carry
her pregnancy to term. After
that, its available only on
grounds of medical necessity,
and the state doesnt pay unless
the woman is too poor to afford
it. In Sweden, abortion is entirely
legal for the first 18 weeks of
pregnancy, but after that, it must
be justified on medical grounds.
Are these countries backward
and barbaric? Someone should
ask Mr. Trudeau.
Personally, Im pro-choice, with
some limits. I respect people
whose limits are different from
my own. I do have problems
with people who try to frame all
limits on abortion as an attack
on womens freedom. And I
dont especially like leaders who
cant tolerate dissent on issues
as profound and personal as this
one.
But thats the way liberal pro-
gressivism is going these days.
Its become as intolerant and
doctrinaire as any fundamental-
ist cult. So someone wants to
attend a private Christian law
school that is not 100-per-cent in
favour of gay marriage? Sorry!
She cant be a lawyer in this
province. Is global warming a
problem we probably cant do
much about? If thats what you
think, get ready to be roasted at
the stake. Worried that legalizing
pot might have some down-
sides? Better keep it to yourself,
or people might mistake you for
One of Them.
Forget nuance. Orthodoxy has
no room for that.
POLITICS
Spare me the abortion absolutism
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MARGARET WENTE
mwente@globeandmail.com
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C
laudia Medina was taken
from her home in Veracruz,
Mexico, in the middle of the
night. She was beaten, kicked,
sexually assaulted, electrically
shocked, tied to a chair and left
in the scorching afternoon sun
on a navy base. Accused of being
part of a criminal gang, she
signed a statement she was not
allowed to read and was paraded
in front of the media. She later
told the court she had been tor-
tured. All but one of the charges
were dropped and she was
released. Almost two years later,
there has been no investigation
into her torture.
The global ban on torture is
unambiguous, and yet torture is
commonplace in fact, epidemic
in many countries. And instead
of consistently rejecting torture
in other countries, Canadian poli-
cy too often gives it a nudge and
a wink. That complacency must
give way to resolute leadership.
Universally banned; never
excused. Yet Amnesty Interna-
tionals new Stop Torture cam-
paign points to torture in 141
countries, on every continent,
over the past five years. That
extends beyond those countries
most readily associated with tor-
ture, such as Syria, Iran or China
during the campaign, activists
across Canada will push to end
high levels of torture in Mexico
and the Philippines. Recently,
Amnesty has initiated urgent
action on torture in Colombia,
Angola and Barbados.
Few human-rights protections
are stated so unequivocally: In
the Universal Declaration of
Human Rights, numerous other
UN treaties, declarations and res-
olutions, and countless national
constitutions and laws. No one
shall be subjected to torture. No
exceptional circumstances what-
soever may be invoked as a justi-
fication for torture.
Governments had good reason
for that unconditional ban. Tor-
ture strikes at the essence of
human dignity at the very heart
of human rights. Excusing it for
any reason combatting terror-
ism, fighting crime, waging war
only deepens the divisions and
marginalization, and furthers the
cycles of revenge and repression,
that fuel human-rights abuses
and insecurity.
Governments also knew the
ban made sense because torture
doesnt work; people will say
anything to bring it to an end.
And they realized that creating
exceptions was a dangerous slip-
pery slope.
The reasons it continues are
many: People are tortured as
punishment. They are tortured to
force a confession, implicate
someone else or obtain informa-
tion. Torture is used to spread
fear, keep people silent and ter-
rorize entire communities. It is
often an extension of discrimina-
tion and misogyny. Torture fre-
quently stems from
misunderstanding and hate.
The techniques are multitudi-
nous. The imagination of cruelty
knows no bounds. From brutal
physical mistreatment to agoniz-
ing psychological methods, tor-
ture leaves emotional scars,
debilitating injuries and often
leads to death. No one is spared:
men and women, young and
elderly.
In all of this, torturers are great-
ly aided by the secrecy that keeps
their crimes hidden and the
impunity that shields them from
punishment.
Safeguards are needed to pierce
the secrecy, such as by making
sure lawyers and doctors can play
their role, standing between tor-
turers and their victims. Political
will is needed to shatter the
impunity that denies justice to
Claudia Medina.
To make that happen, we need
global champions. Surprisingly,
no state truly leads the effort to
eradicate torture. Why isnt Cana-
da playing that role?
We should do so because it is a
vital human-rights concern. And
because torture strikes frighten-
ingly close to home.
A growing number of Cana-
dians have experienced torture
around the world, including in
Syria, Egypt, Saudi Arabia, Iran,
China and Sri Lanka. On any giv-
en day, a Canadian is held some-
where where the risk of torture is
very real.
We also face the disturbing rec-
ognition that Canadian actions
have contributed to torture in
many countries. Numerous jud-
icial inquiries and court rulings
have made that very clear, in-
cluding the cases of Maher Arar,
Abdullah Almalki, Muayyed
Nureddin, Ahmad Abou-Elmaati,
Omar Khadr and Abousfian
Abdelrazik. It was the central
concern with Afghan prisoner
transfers. And it remains a glar-
ing human-rights loophole in Ca-
nadian immigration law, which
allows deportations to torture in
exceptional cases.
The Canadian connection to
overseas torture is back in the
news with further revelations
about ministerial directions on
torture and intelligence informa-
tion. The directives authorize the
use in Canada, in exceptional cir-
cumstances, of intelligence that
was likely obtained through tor-
ture in other countries. And in-
telligence can be shared with
foreign agencies, even when that
will likely cause torture. The UNs
expert Committee Against Tor-
ture has called for Ottawa to
bring the ministerial directions
into line with the international
ban on torture. Ottawa hasnt
budged.
Meanwhile Canada rebuffs a
UN treaty to prevent torture
through prison inspections. The
treaty, an Optional Protocol to
the Convention against Torture,
has been around since 2002.
More than 70 countries are on
board, including France, Switzer-
land, Britain and other close Ca-
nadian allies. But despite
promises at the UN to consider
ratification, Canada has not done
so. That makes it difficult to per-
suade other countries where tor-
ture is rampant to sign on.
We must press for the laws and
safeguards that will prevent tor-
ture. We must refuse to give a
nod to torture anywhere, any
time. We must stop torture
now.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Alex Neve is secretary-general
of Amnesty International Canada.
HUMAN RIGHTS
A nudge and a wink on torture
Its universally and unambiguously banned. So why does Canada treat it with such complacency? asks Alex Neve
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A joint Canadian-Afghan army patrol binds a detainee in Kandahar:
Torture was the central concern with prisoner transfers. THE CANADIAN PRESS
T
he Ontario budget rejected
by opposition parties is now
at the heart of the provincial
Liberals election campaign. At
its heart was a proposed tax in-
crease on personal income over
$150,000 by 1.56 per cent (in-
cluding the surtax) and a drastic
lowering of the top income-tax
bracket threshold, which means
that the top combined Ontario-
federal tax rate of nearly 50 per
cent would apply on incomes
over $220,000, down from the
current $514,090.
Faced with a $12.5-billion def-
icit, raising taxes may sound like
a good idea. But it is foolish to
think that a targeted increase on
high-income earners will yield
enough to poke a hole in the
deficit, or pay in any substantial
way for enhanced public transit
or public service wages and ben-
efits. Experience has shown that
taxpayers will adjust their be-
haviour to reduce the impact of
the hikes on their tax liabilities,
leaving the province with yet an-
other shortfall of revenues over
planned spending.
The first effect of tax changes
is mechanical; higher rates gen-
erally lead to higher revenues. If
taxpayers dont react to the tax
hike, I calculate that the higher
tax rates would lead to about
$300-million more going to the
government next year. The pro-
posed budget estimated the pro-
posed hikes would yield more
than $600-million. These esti-
mated amounts are very small.
They represent a tiny fraction of
the budget deficit, and revenues
of this magnitude could be
generated by economic growth
of about half a per cent.
Actual tax receipts would
almost certainly turn out even
lower than that. We know that
taxpayers, especially at higher
levels of income where they al-
ready face high rates, respond to
tax changes by adjusting their
behaviour. When faced with
higher taxes, taxpayers may
reduce their paid work or substi-
tute employment income for
other less-taxed sources of in-
come, such as capital gains. Or
they may plan their affairs by,
for example, adjusting the tim-
ing of significant transactions,
moving elsewhere just before
concluding important transac-
tions or legally using trusts locat-
ed outside the province. In
short, taxpayers will react to a
tax hike by attempting to reduce
their taxable income as much as
possible, reducing tax receipts in
the process.
On the basis of Finance Cana-
das tax responsiveness esti-
mates, I calculate that the
proposed tax hikes would result
in affected taxpayers reporting
approximately 2 per cent less
taxable income, costing the On-
tario tax base about $1-billion a
year. This erosion of the tax base
comprised of taxable income
taxed at the highest marginal
rate would reduce expected tax
receipts from the hike by two-
thirds, delivering to the govern-
ment only about $100- to $200-
million annually in the next few
years.
But these are only near-term
impacts. In the long run, higher
top tax rates will negatively
affect education, career and oth-
er personal investment deci-
sions. Whether it would be
training for skills upgrading or
expansion of small business ac-
tivities, those are often invest-
ments demanding sustained
efforts for an uncertain payoff.
The more governments take
away from the potential rewards,
the less the incentive to invest
time and money. These issues
are critically important when
thinking of top tax rates and the
extent to which they may dam-
pen incentives for career advan-
cement, training, business
development and entrepreneur-
ship.
We do not have many empir-
ical estimates on the magnitude
of these long-run effects, but
that does not mean that policy-
makers should ignore them. A
2011 study published by the C.D.
Howe Institute, looking at both
short- and long-run impacts,
estimated it would cost Ontarios
economy $1.16 to raise one addi-
tional dollar of tax revenues
through a top tax rate hike.
The proposed budget tax hike
would not raise enough tax reve-
nues to justify the high costs it
would impose on the tax base
and the economy. Worst, trying
to finance newly budgeted
spending by counting on addi-
tional tax revenue that will nev-
er be collected would actually
grow instead of reduce the
provinces huge budget deficit.
ONTARIO ELECTION
Hiking taxes on top earners is a mugs game
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ALEXANDRE LAURIN
Associate director of research
at the C.D. Howe Institute
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COMMENT
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THE GLOBE WAS FOUNDED IN 1844. THE MAIL WAS FOUNDED IN 1872.
Editorial & Comment
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KONRAD YAKABUSKI will return
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A12 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
P. George
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THE WEATHER FOR THIS AFTERNOON
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CANADA FORECASTS
Banff
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Corner Br
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Gasp
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North Bay
Ottawa
NATIONAL FORECAST
Daytime high, overnight low and conditions:
ccloudy
fgfog
frfreezing rain
hzhaze
nanot available
pcpartly cloudy
rrain
rs-rain/snow
ssun
snsnow
sfsnow flurries
shshowers
tthundershowers
wwindy
TODAY FRI. SAT. SUN.
TODAY FRI. SAT. SUN.
15/3pc 12/4r 9/3r 7/2r
17/5t 13/5r 13/4pc 15/8r
13/0s 14/2s 17/7s 20/10pc
16/4pc 11/6pc 10/5r 14/7t
16/10pc 20/10pc 18/9pc 16/8pc
23/14t 23/10r 16/9r 17/8r
8/-2s 2/-3rs 4/-4r 2/-3sf
11/6pc 14/8c 19/7pc 19/8pc
28/8t 22/8r 16/8r 19/9pc
13/6r 15/9pc 17/7pc 15/5r
17/12c 21/10pc 22/8pc 20/10pc
20/13pc 22/9pc 20/7s 15/6pc
17/7pc 12/7r 23/10pc 20/8s
14/9pc 20/7pc 17/7pc 15/8pc
19/6r 13/5r 13/5r 16/5pc
17/3t 12/3r 13/3pc 15/6r
9/2c 8/2c 6/-1c 1/-4c
0/-5sf -1/-5pc -1/-2sf 1/-2sf
15/3pc 15/5r 13/5r 17/4r
25/11pc 22/9t 18/9c 16/9r
7/1pc 10/2s 13/5pc 18/7pc
22/8pc 14/6r 13/5s 15/6pc
18/4r 13/5pc 12/5pc 16/7r
19/13pc 23/10pc 21/8s 18/9r
27/16t 22/10r 17/10r 18/10pc
19/7t 13/6r 13/7pc 15/9pc
14/3r 10/1r 12/4pc 14/6r
27/8t 19/7r 17/8r 18/9r
TODAY FRI. SAT. SUN.
18/7pc 19/7pc 20/8r 20/8r
15/3t 9/3pc 11/2pc 14/7r
21/7t 14/4r 14/6pc 16/6pc
24/15t 24/10r 15/9r 15/10c
15/6r 15/6pc 16/9r 20/10pc
19/15r 22/14pc 20/11r 16/10r
7/1r 7/-1r 8/0r 12/3pc
12/9c 17/8pc 18/6pc 16/9r
14/4r 17/5s 17/7s 15/7r
9/6r 12/7r 13/7pc 11/5r
10/2s 14/4pc 10/3pc 10/4r
13/2r 9/0pc 11/2pc 16/6r
14/7pc 17/7pc 16/5s 10/5r
31/24r 31/24t 31/22t 31/22t
14/7s 17/6s 18/8s 20/10pc
18/8s 20/8s 18/7pc 12/5r
33/16s 29/13s 28/13pc 26/12pc
27/16s 26/14pc 27/14c 27/15pc
19/9r 22/11pc 21/11r 23/10t
37/24s 41/25s 42/27s 40/26s
37/27t 37/27t 36/27t 36/27t
28/10s 28/15s 27/13pc 26/15pc
23/19s 24/20s 24/20r 23/19s
9/8r 13/8r 16/9r 19/9r
18/3pc 20/4pc 21/7pc 21/7c
21/19pc 21/19pc 21/19pc 23/19pc
24/15r 22/17c 19/14r 19/13r
30/26pc 30/26t 30/26t 30/26pc
15/4pc 17/5s 19/8s 20/9s
12/8r 16/9r 17/8t 18/9r
22/13s 20/11s 18/9pc 19/7c
35/20pc 34/21s 33/19pc 32/19s
18/13r 17/12r 19/12s 20/10s
12/4r 12/3r 16/5pc 18/7pc
15/7s 15/8pc 16/8s 16/10pc
26/13pc 29/14pc 28/16pc 28/18pc
17/6r 17/7t 23/9r 27/12c
15/10r 17/10c 15/10pc 14/10c
13/4r 16/5pc 18/8pc 21/8s
27/26t 27/25t 27/25t 27/25t
Edmonton
13/6
Whitehorse
14/2 Yellowknife
10/1
Churchill
8/-2
Vancouver
21/13
Portland
28/15
Phoenix
36/21
Denver
17/6
Atlanta
19/9
Chicago
12/4 Washington
26/19
Boston
24/15
Halifax
14/9
Toronto
18/7
Montreal
27/16
Houston
26/13 New Orleans
23/14
Miami
29/23
Regina
15/6
Winnipeg
11/0
TWN incorporates Environment Canada data
St. Johns
10/2
Iqaluit
0/-5
Snow
Rain
Thunder storm
Freezing rain
WORLD FORECASTS
TODAY FRI. SAT. SUN.
27/23r 28/23s 28/23s 28/23r
26/13s 29/16pc 29/18pc 28/19pc
22/15s 22/14s 20/14s 20/14pc
27/12s 26/15pc 24/13s 23/11s
21/3s 22/4s 22/4s 19/6s
33/29pc 33/29pc 34/28s 34/28s
20/12r 22/15t 23/15t 22/14r
35/22s 38/23pc 38/22pc 34/18w
27/16s 25/16pc 25/17s 24/15s
19/8pc 20/10pc 20/11pc 19/11s
34/19s 30/17s 24/15pc 22/14pc
23/8pc 23/9s 22/8s 24/9s
36/27pc 36/27t 36/28pc 37/27t
29/23t 28/21t 28/22pc 28/23pc
30/25t 30/25t 30/25t 30/25t
20/9pc 18/10pc 18/8r 23/9pc
25/22t 26/18r 25/15s 25/16pc
18/11r 19/10r 20/8pc 22/11pc
35/25pc 36/25s 37/26s 37/26s
23/14s 26/14s 27/16pc 28/18s
23/17r 20/18r 23/15s 21/13pc
19/13r 20/13pc 19/14pc 20/15s
28/23t 27/18s 28/17s 29/18s
15/6pc 19/6pc 18/6pc 17/6s
38/21s 41/22s 40/21pc 37/19pc
19/0s 21/3pc 23/4pc 25/7pc
36/21s 38/21s 39/22s 38/22pc
23/6pc 22/9c 23/8c 23/7pc
22/14pc 19/13pc 18/13pc 17/13s
21/8s 24/12pc 24/13pc 24/13pc
26/15pc 25/16pc 24/17r 23/17r
22/12r 23/10s 24/10s 23/10pc
34/28t 34/28t 34/28t 33/27t
13/2r 20/6s 19/6pc 21/8s
21/13s 21/12s 21/13s 20/13c
21/18r 24/16pc 23/15pc 23/15pc
11/8r 10/9r 12/9r 17/10c
18/10c 14/11r 17/12r 20/12r
26/19pc 19/13r 20/11pc 19/11pc
-30
-20
-10
0
10
20
30
40
Jet Stream
Warm Front
Cold Front
Occlusion
Trough
TODAY FRI. SAT. SUN.
11/0pc 4/0rs 6/0sf 10/1pc
15/1s 16/2pc 11/2r 15/3r
4/1r 10/-2r 10/0pc 15/4pc
18/7t 14/7r 14/7pc 16/9r
12/5r 13/2r 13/3pc 14/5r
21/13pc 17/12pc 16/11r 16/11c
21/12pc 16/11pc 16/10r 15/10r
18/6t 13/3r 13/4r 15/5pc
23/10pc 17/8r 11/6r 13/7c
14/2s 16/5pc 19/8s 13/4pc
15/6r 13/6pc 14/7r 17/9s
11/0s 12/3s 14/4pc 15/10pc
10/1s 10/0pc 8/1pc 12/2pc
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EXECUTIVE: ERIN ADAMS, V.P., HUMAN RESOURCES 9 GREG DOUFAS, V.P., DATA AND AUDIENCE INTELLIGENCE 9 ANGUS FRAME, V.P., DIGITAL & TECHNOLOGY 9 SUE GAUDI, V.P. AND GENERAL COUNSEL
9 SEAN HUMPHREY, V.P., MARKETING 9 SANDRA MASON, CHIEF FINANCIAL OFFICER 9 PERRY NIXDORF, V.P., OPERATIONS 9 ANDREW SAUNDERS, CHIEF REVENUE OFFICER
NEWS
The former royal editor of the
News of the World said Wednes-
day that he repeatedly hacked
the voice mails of Prince William,
Prince Harry and Kate Middleton
in the months before he was
arrested for illegal eavesdropping
in 2006.
Under cross examination at
Britains phone hacking trial,
Clive Goodman acknowledged he
had listened to Ms. Middletons
voice mails 155 times, Prince Wil-
liams 35 times and Prince Harrys
nine times.
Mr. Goodman was briefly jailed
in 2007, along with private inves-
tigator Glenn Mulcaire, for hack-
ing the phones of royal aides. But
Mr. Goodman said police and
prosecutors never asked him
whether he had also targeted
members of the Royal Family.
I have been as open and hon-
est about hacking as I can be, but
nobody has asked me any ques-
tions about this before, said Mr.
Goodman, 56.
Earlier in the trial the jury was
read transcripts of intercepted
phone messages between Wil-
liam and Kate from the days
when they were courting. She
became the Duchess of Cam-
bridge when they married in
2011.
Mr. Goodman said she was first
targeted in late 2005, when she
was becoming a figure of in-
creasing importance around the
Royal Family.
There were discussions about
her and Prince William marrying,
moving in, settling down, he
said. She started to receive semi-
royal status and things were
moving on.
Mr. Goodman and six others
including ex-News of the World
editors Rebekah Brooks and
Andy Coulson are on trial over
wrongdoing at Rupert Murdochs
British tabloids.
Mr. Goodman is not charged
with hacking phones, but of con-
spiring to pay officials for royal
phone directories.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Associated Press
TRIAL
Former editor
hacked royal
voice mails
hundreds of
times, he says
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JILL LAWLESS LONDON
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Normally, the publics focus
is predominantly on the first
players drafted. But this year, the
highest-profile draftee was the
young man picked 249th overall:
Michael Sam, the first openly gay
professional football player in
the United States.
At the moment of Mr. Sams se-
lection, ESPN broadcast footage
of the athlete, overcome with joy,
kissing his boyfriend footage
almost nobody would have
expected to see on the countrys
leading sports network. A week
later, Mr. Sam is still arguably the
American sports worlds top
story.
For years, beyond the cultural
bombshells that have forced the
United States to rethink its views
on gay issues, the countrys slow
but seemingly inevitable march
toward full recognition of same-
sex marriage has mostly had bal-
lot measures for milestones.
Many of the laws prohibiting
same-sex measures came in the
form of popular votes. And for a
time, it appeared those measures
would be overturned using the
same mechanism.
But in the past year, the battle
over same-sex marriage rights
has increasingly been fought
and, for supporters of the institu-
tion, won in the courtroom
rather than the voting booth.
Attitudes of Americans toward
same-sex marriage have changed,
and the judges are not ignorant
of that, said Carl Tobias, a pro-
fessor at the University of Rich-
monds School of Law in
Richmond, Va.
For some elected officials, the
issue of same-sex marriage rights
is all but settled. Oregons attor-
ney-general, currently facing a
lawsuit aimed at overturning the
ban on same-sex marriage in the
state passed 10 years ago, hasnt
even bothered mounting a
defence.
The only objection, the only
pushback that I had in bringing
this lawsuit was from the gay
groups, said Lake Perriguey, a
Portland-based lawyer who has
become perhaps the central fig-
ure in the ongoing fight to make
Oregon the 18th state to fully rec-
ognize a gay couples right to
marry.
If that is the pushback youre
getting, he said, referring to gay
activists who want the issue set-
tled at the ballot box, youre in a
really good position.
The latest onslaught of court
cases aimed at legalizing same-
sex marriage is, in large part, a
direct result of United States v.
Windsor, a Supreme Court case
decided in June, 2013. In a 5-4 rul-
ing, the court largely struck down
the Defense of Marriage Act, a
1996 law that essentially banned
same-sex marriage. Since then, a
slew of lower courts have relied
on the Supreme Court ruling to
strike down similar provisions
across myriad states.
In Portland, a month after the
Supreme Court ruling, Mr. Perri-
guey asked for a meeting with
Ellen Rosenblum, Oregons attor-
ney-general, to let her know he
would file a lawsuit to push for
same-sex marriage in the state.
Ms. Rosenblum, it turned out,
had no objections. To Mr. Perri-
gueys surprise, the day after he
filed his case in October, she
ordered Oregons state agencies
to begin recognizing out-of-state
gay marriages. In a court filing,
she indicated the state agencies
responsible for upholding Ore-
gons ban would simply not do
so.
Indeed, the chief opposition to
Mr. Perrigueys lawsuit came
from some of Oregons gay-rights
groups. In recent months, those
groups had worked tirelessly to
collect enough signatures to put
the issue of same-sex marriage
back on the ballot this coming
November. Many activists were
worried that, should the issue be
settled in court rather than
through the ballot box, oppo-
nents of same-sex marriage
would argue that voters rights
had been circumvented.
Two weeks ago, an Oregon
court was set to hear opening
arguments in the case al-
though, given both sides agree-
ment, there were none to be
heard. However, at the last min-
ute, a Washington-based group
called the National Organization
for Marriage (NOM) filed a
motion to intervene in the case.
We spent some time trying to
find somebody in-state to inter-
vene, but quite frankly, people
were scared, said John Eastman,
NOMs chairman. He said many
opponents of same-sex marriage
were worried their businesses
and livelihoods would be target-
ed if they made their opposition
public, pointing specifically to
the recent case of Brendan Eich,
the former CEO of technology
firm Mozilla, who stepped down
under pressure after it became
known he contributed to a cam-
paign to ban same-sex marriage
in California.
Mr. Eastman called the Oregon
attorney-generals decision not to
mount a defence unethical,
saying she has an obligation to
do so. Our adversarial process in
this country is adversarial for a
reason.
On Wednesday, the presiding
judge in the Oregon case denied
NOMs motion to intervene. The
organization plans to appeal.
Even though the tide appears
to be turning in many states in
favour of permitting same-sex
marriage, gay rights broadly in
the United States still differ wild-
ly depending on region. Last
month, Human Rights Watch
called on the state of Louisiana
to repeal its crimes against
nature law. Enacted in 1805, the
law criminalizes oral and anal
sex. Despite being largely unen-
forceable on constitutional
grounds, the law remains on the
books.
However, next year may see a
significant change in the frag-
mented state of same-sex mar-
riage rights in America. The
University of Richmonds Prof.
Tobias of notes it is highly likely
one or more of the current same-
sex court cases, including Ore-
gons, may find its way on appeal
to the Supreme Court.
It could be in 2015 that the
Supreme Court says that these
bans are invalid, and then what
has been piecemeal so far wont
be piecemeal any more.
FROM PAGE 1
Gay rights: Many bans on same-sex marriage came from ballot box
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Gay-rights groups in Oregon want ban on same-sex marriage ended in a vote, not in a court. ROSS WILLIAM HAMILTON/AP
9
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THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A A13
SOUTH AFRICA
Oscar Pistorius
to be assessed
for anxiety disorder
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pretoria, South Africa Oscar
Pistorius will undergo psychiatric
evaluation after the judge ruled
at his murder trial Wednesday
that his state of mind when he
killed his girlfriend should be as-
sessed by experts, possibly delay-
ing court proceedings for two
months.
The ruling was prompted by
testimony by a psychiatrist on
behalf of the defence that the
double-amputee Olympic athlete
has generalized anxiety disorder
and that this may have influ-
enced his judgment when he
fatally shot Reeva Steenkamp in
his home on Feb. 14, 2013.
The chief prosecutor, Gerrie
Nel, then requested psychiatric
testing a move opposed by Mr.
Pistoriuss chief lawyer.
Justice Thokozile Masipa agreed
with the prosecutor, saying it was
important to independently
assess Mr. Pistoriuss state of
mind because the defence might
now argue that he was not crimi-
nally responsible for the shooting
because of his anxiety disorder.
Associated Press
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THAILAND
Two killed,
21 injured in attack
at protest site
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bangkok Two anti-government
protesters were killed and 21 were
wounded in a gun and grenade
attack early Thursday in Bang-
kok, medical officials and police
told AFP, stoking fears of wider
political violence in the crisis-hit
kingdom.
Police said two M79 grenades
were launched into a protest site
at the citys Democracy Monu-
ment and were followed by gun-
shots.
Anti-government protesters
have moved to the area immedi-
ately around Government House
in the citys historic quarter as
they try to press the Thai Senate
to remove the caretaker admin-
istration and appoint a new
prime minister.
Agence France-Presse
WORLD DIGEST
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NEWS
Amid wails of grief and anger,
rescue workers coated in grime
trudged repeatedly out of a coal
mine Wednesday with stretchers
of bodies that swelled the death
toll to 274 the worst such disas-
ter in Turkish history.
Hopes faded for 150 others still
trapped deep underground in
smouldering tunnels filled with
toxic gases.
Anti-government protests
broke out in the mining town of
Soma, as well as Istanbul and the
capital, Ankara, with Prime Min-
ister Recep Tayyip Erdogan heck-
led as he tried to show concern.
Protesters shouted Murderer!
and Thief! and Mr. Erdogan was
forced to seek refuge in a super-
market, surrounded by police.
The display of anger could have
significant repercussions for the
Turkish leader, who is widely
expected to run for president in
the August election, although he
has not yet announced his candi-
dacy.
Tensions were high as hundreds
of relatives and miners jostled
outside the mines entrance
Wednesday, waiting for news
amid a heavy police presence.
Rows of women wailed uncon-
trollably and men knelt sobbing
or simply stared in disbelief as
rescue workers removed body
after body, some charred beyond
recognition.
One elderly man wearing a
prayer cap wailed after he recog-
nized one of the dead, and police
had to restrain him from climb-
ing into an ambulance with the
body. An injured rescue worker
who emerged alive was whisked
away on a stretcher to the cheers
of onlookers.
Energy Minister Taner Yildiz
said 787 people were inside the
coal mine at the time of Tues-
days explosion: 274 died and 363
were rescued, including scores
who were injured.
The death toll topped a 1992
gas explosion that killed 263
workers near Turkeys Black Sea
port of Zonguldak. It also left 150
miners still unaccounted for.
Mr. Yildiz said rescue workers
were trying late Wednesday to
reach the bodies of up to 22 peo-
ple trapped in one zone. Some of
the workers were 420 metres
deep inside the mine, he said.
One rescue worker who
declined to be named said he led
a 10-man team about a a kilo-
metre down into the mines tun-
nels, where they recovered three
bodies before being forced to flee
because of smoke from burning
coal. Rescue operations were
halted for several hours into
Thursday morning because high
gas concentrations in the mine
needed to be cleared.
The last miner rescued alive
emerged from the mine around
dawn and the first burials took
place later Wednesday.
Giza Nergiz, a 28-year-old Eng-
lish teacher, said some of the vic-
tims had complained about
safety at the mine.
We buried three of our high-
school friends today, she said,
walking with her husband Onur
Nergiz, a 30-year-old mine ad-
ministrator. A lot of people were
complaining about safety, but
nobody [in management] was
doing anything about it.
Mr. Erdogan declared three
days of national mourning and
also postponed a trip to Albania
to visit the mine in Soma, 250
kilometres south of Istanbul.
Yet his efforts to show compas-
sion discussing rescue opera-
tions with authorities, walking
near the mine entrance, trying to
comfort two crying women did
not always go over well.
At a news conference, he tried
to deflect a question about who
was responsible for the disaster,
saying: These types of things in
mines happen all the time.
In this industrial town, where
coal mining has been the main
industry for decades, Mr. Erdo-
gans ties to mining leaders were
vehemently noted. Townspeople
said the wife of the Soma mines
boss works for Mr. Erdogans par-
ty and the boss himself had
skipped town.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Associated Press
TURKEY
Death toll swells in coal mine explosion
Hundreds confirmed dead, with many others still trapped underground, as anger mounts at PM Erdogans ties to mining leaders
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DESMOND BUTLER
SUZAN FRASER
SOMA, TURKEY
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Rioters attack the Soma offices of Prime Minister Recep Tayyip Erdogan's Justice and Development Party on
Wednesday. Mr. Erdogan has called for three days of mourning and postposed a state trip to Albania. EMRAH GUREL/AP
A HISTORY OF TRAGEDY
Some of the worlds worst
mining disasters:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
China, 1942
Deaths: 1,549
Fatal explosion of under-
ground coal mine near Benxi
in Liaoning province was
caused by mixture of gas and
coal dust.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
France, 1906
Deaths: 1,099
Underground fire in one of the
pits of the Courrires Colliery
sparked massive explosion.
Workers inside the mines
deep tunnels, as well as peo-
ple on the surface, were killed.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan, 1914
Deaths: 687
Mitsubishi Hojyo coal-mine
disaster was caused by an un-
derground gas explosion at
the mine located in the island
of Kyushu.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
China, 1960
Deaths: 684
Laobaidong Colliery disaster
was caused by methane explo-
sion in the mine located near
Datong in Shanxi province.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Japan, 1963
Deaths: 458
Coal dust at the Mitsui Miike
mine triggered an explosion
about 500 metres under-
ground. Most of the deaths
were due to carbon-monoxide
poisoning. Many survivors suf-
fered severe brain damage.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sources: mining-technology.com,
Globe Editorial Research
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Report on Business
THURSDAY, MAY 15, 2014 SECTI ON B
EDITOR: PAUL WALDIE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Connect with us: @globebusiness facebook.com/theglobeandmail linkedin.com/company/the-globe-and-mail
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Bank of Nova Scotia is looking
to sell its substantial stake in
Canadas largest independent
wealth manager, a bold move
that will reshape the countrys
investment landscape.
Scotiabank owns 37 per cent of
CI Financial Corp., a position
now worth $3.8-billion. The
countrys third-largest lender in-
tends to monetize the stake at
a time when wealth managers
are in heavy demand and the
S&P/TSX composite index nears
a record high. Since the start of
2013, CIs stock has climbed 44
per cent and the company now
has $97-billion worth of assets
under management.
While the move may seem at
odds with Scotiabanks recent
emphasis on wealth manage-
ment which now accounts for
roughly 20 per cent of its earn-
ings, up from 3 per cent a dec-
ade ago management said it
can sustain the growth with its
own assets, especially after buy-
ing the 80 per cent of wealth
manager DundeeWealth that it
did not already own for $2.3-bill-
ion in 2011.
With the strong momentum
in our wealth management
along with the continued suc-
cess of our investment in Dun-
dee, we are quite confident that
we have a solid wealth manage-
ment platform, vice-chairman
Sabi Marwah said.
FINANCIAL SERVICES
Scotiabank
looks to
monetize
CI stake
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TIM KILADZE
BOYD ERMAN
JACQUELINE NELSON
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sears Canada Inc. is on the block
with no obvious buyer in sight,
threatening to drag out its string
of weak financial results.
U.S. parent Sears Holdings
Corp., controlled by hedge fund
manager Edward Lampert, said
on Wednesday it is contemplating
the sale of its 51-per-cent stake in
its Canadian division among oth-
er strategic alternatives. Sears
Canada said it intends to co-oper-
ate with the process.
But the ailing retailer has al-
ready sold many of Sears Cana-
das best assets, including coveted
store leases at Toronto Eaton
Centre and Vancouvers Pacific
Centre, making an acquisition
less appealing for a rival. Major
landlords have poured hundreds
of millions of dollars into buying
those and other leases, then sell-
ing some of the best ones to U.S.
department store Nordstrom Inc.
The flurry of activity paved the
way for it to launch here, starting
this fall, and set the stage for
more intense competition for in-
cumbents.
In this tougher retail landscape,
neither landlords nor rivals seem
enthusiastic to invest in Sears
Canada, industry sources say.
RETAIL
Sears faces a soft market
in sale of Canadian assets
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MARINA STRAUSS
TARA PERKINS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Former treasury secretary Timothy Geithner waits to testify
on Capitol Hill in Washington in 2012. AROLYN KASTER/THE ASSOCIATED PRESS
T
iger Moms, youre going to
hate the Timothy Geithner
book.
I was a good student, never a
great student, Mr. Geithner,
who led the Federal Reserve
Bank of New York and was
Barack Obamas first treasury
secretary, writes early in his
memoirs. I was a decent ath-
lete, nothing special. I wasnt
particularly ambitious or hard
working.
This blas kid from New York,
who spent parts of his youth in
New Delhi and Bangkok, and his
college years at Dartmouth, an
Ivy League school in New Hamp-
shire that accepted him because
family members were alumni,
would grow up to be a key fig-
ure in one of his countrys most
traumatic periods. A childhood
of enforced piano lessons, extra-
curricular language classes, char-
itable endeavour, and sporting
stardom wasnt required. (Nei-
ther was an economics degree,
as Mr. Geithner became one of
his countrys most important
central bankers without one.)
The sense of detachment never
went away, however. Mr. Geithn-
ers career path ran through the
offices of Henry Kissingers con-
sultancy and Robert Rubins
Treasury Department, at which
he worked closely with Lawrence
Summers and Alan Greenspan.
All were giants of Washington.
KEVIN CARMICHAEL
WASHINGTON
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The accidental
treasury secretary
How a self-described blas kid from New York
rose to become Barack Obamas point man
on the 2008 financial crisis
TIMOTHY GEITHNER
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THE COLOUR OF MONEY
Tuesday: A yellow diamond sells for $16.3-million.
Wednesday: A blue diamond goes for $24.2-million.
Whats driving the market for colourful gems JANET McFARLAND, PAGE 5
Russia, Page 9
Scotiabank, Page 9 Geithner, Page 6
Sears, Page 9
T
he low-profile Canadian who
serves as one of Warren Buf-
fetts chief lieutenants is making
a big bet on the economic poten-
tial of his home province amid
speculation that he might one
day succeed the famed investor
at the helm of Berkshire Hatha-
way Inc.
Edmonton-born Greg Abel, 51,
presides over Berkshire Hatha-
way Energy, the power and utility
arm of the Oracle of Omahas
sprawling conglomerate. He has
earned plaudits for guiding the
Iowa-based energy unit on an
acquisition binge, including a
$3.2-billion deal earlier this
month for AltaLink, Albertas
largest electrical transmission
company.
More acquisitions may be in
the works, he hinted in an inter-
view, given Albertas rapid popu-
lation growth and frenetic pace
of economic expansion.
We were excited when Alta-
Link came up because we just
see, truly, a great place to invest
and we want to be part of the sig-
nificant investment thats going
on in that province, Mr. Abel
said, adding he had been looking
for an opportunity to invest in
Canadian energy infrastructure.
BERKSHIRE HATHAWAY
Buffetts Canadian lieutenant
eyes Alberta expansion
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JACQUELINE NELSON
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INSIDE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Abel, Page 10
Silver fix
After 117 years, the metals bench-
mark price will no longer be
fixed by a handful of banks
forcing mints, miners and jewell-
ers around the world to grapple
with new uncertainty.
Page 3
INTERNATIONAL RELATIONS
Ottawa warns against Russian business trips
Alberta, B.C. drop out of Moscow energy conference as federal government tells executives to avoid travelling to country
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Canadian government has
begun publicly discouraging
business executives from travel-
ling to Russia in a new effort to
further shun Vladimir Putins
regime over its aggression in
Ukraine. The measure comes
amid a growing Canadian boycott
of a major global energy confer-
ence in Moscow next month.
The federal government, the
governments of Alberta and Brit-
ish Columbia, along with Suncor
Energy Inc., one of Canadas larg-
est oil companies, said they are
cancelling plans to attend the
World Petroleum Congress, set
for June 15-19 in Moscow.
International Trade Minister Ed
Fast on Wednesday urged Cana-
dian business people to skip
prominent events in Russia such
as the World Petroleum Congress,
the St. Petersburg International
Economic Forum in late May, and
the Innoprom industrial exhibi-
tion, set for July in Yekaterinburg.
We encourage Canadian senior
business executives to refrain
from attending high-profile
events in Russia, Mr. Fast said in
a statement. Canada is deter-
mined to support Ukraine and
will continue to work with our
allies and like-minded countries
to apply pressure that will fur-
ther isolate Russia economically
and politically, until the Putin
regime clearly demonstrates its
respect for Ukraines sovereignty
and territorial integrity.
STEVEN CHASE OTTAWA
CARRIE TAIT CALGARY
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B2 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 REPORT ON BUSINESS
COMMENT & ANALYSIS
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ET CETERA
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T
here was a time, not all that
long ago, when it appeared
that the Trans Mountain pipeline
expansion project would get a
much easier ride in the public
arena than Enbridge Inc.s
Northern Gateway proposal.
Its not looking that way today.
Kinder Morgan Energy Part-
ners $5.4-billion plan tripling
the capacity of the current Trans
Mountain system to get scads of
oil sands-derived crude to the
Pacific is in the early stages of
its regulatory review and the op-
position in British Columbia is
girding for battle.
This is now standard for any
major oil pipeline project,
regardless of whether it cuts new
routes or makes use of old ones.
Despite its best efforts, Kinder
Morgan is headed into its own
era of contention.
Its evident in the flood of in-
formation requests submitted to
the National Energy Board by 122
of the intervenors in the process.
The deadline for the first queries
into the Trans Mountain applica-
tion was Monday.
Intervenors represent a Whos
Who of, well, just about anyone
in the region: cities and towns in
B.C., including Vancouver and
Burnaby at the terminus of the
line; Canadian and U.S. indige-
nous bands; environmental
groups; the governments of B.C.
and Washington; individual resi-
dents; and Elizabeth May.
A taste: The Surrey, B.C., Teach-
ers Association wants to know
why the expanded pipeline must
run along the banks of the Fraser
River rather than along the exist-
ing right-of-way in that area and
what its schools responsibilities
are in an emergency. Vancouvers
85 pages of requests include
queries about marine spill re-
sponse, recovery of diluted bit-
umen and earthquake risks
battle-worn issues for Northern
Gateway. Albertas Samson Cree
Nation wants to know why tradi-
tional native territories were not
taken into account for inclusion
in the engagement process.
In total, the NEB received
applications from 2,118 individu-
als and organizations wanting to
participate in the hearings. It
told 1,250 applicants they could
only write letters. Another 468
were excluded from even writing
in.
The legislation that the Harper
government rejigged two years
ago to limit the number of inter-
venors in regulatory hearings for
such projects has already
sparked a constitutional chal-
lenge.
It seems to matter little that
Kinder Morgan made few public
pronouncements in the early
stages of its planning, preferring
to work quietly while the spot-
light was trained on Northern
Gateway.
In its process, as Enbridge
sought to win the hearts and
minds of aboriginal groups and
other communities in B.C., Otta-
wa painted the projects oppo-
nents as hippie puppets of
foreign interests bent on ruining
the national economy. Its aggres-
sive approach probably backfired
by emboldening critics.
Now, an expected federal
approval of Northern Gateway in
the coming weeks will do little to
dampen the resolve of oppo-
nents.
Even Kinder Morgan Canada
president Ian Anderson said the
feds forceful stand was not help-
ful, and that debates over the
issue of moving crude westward
should be held at the local level.
To its credit, Kinder Morgan
spent two years trying to build
relationships along its route,
holding meetings and open
houses across B.C. and Alberta. It
has pledged to keep talking, even
if the project wins approval.
The work may indeed have
won it some support, or at least
better understanding, at the local
level. But it will not remove the
target from its collective back
when it comes to municipal
governments, green groups and
others in the Lower Mainland
staunchly opposed to pipelines,
or perhaps more accurately, the
diluted bitumen that would flow
through them.
Certainly Enbridges recent ex-
perience with the Line 9 reversal
project in Southern Ontario and
Quebec showed that the energy
industry faces spirited push-back
to pipelines, even with the pipe-
lines that are already built.
Kinder Morgan has a month to
respond to the intervenor
requests as part of the NEB
review, then there is a period for
aboriginal intervenors to apply
to provide oral evidence. There is
a second round of requests in
early July. The Trans Mountain
expansion review must be com-
pleted by July 2, 2015.
Thats a hard deadline as dic-
tated by the new federal rules,
but plenty of time for project op-
position to reach Northern Gate-
way proportions.
ENERGY
Trans Mountain plan snared in anti-pipeline contagion
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JEFFREY JONES
jeffjones@globeandmail.com
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Many groups are lining up against Kinder Morgans Trans Mountain proposal. DARRYL DYCK/THE CANADIAN PRESS
T
he global financial crisis deliv-
ered a right hook that rocked
practically every facet of the glob-
al economy. In contrast to this
shared descent, the pace of the
subsequent recovery has varied
widely by component. Whereas
stocks seek new highs, home
prices are buoyant and (U.S.) job
creation has finally revived, glob-
al wage growth has remained
groggy. This is particularly
curious in Canada, where the
economy has long since shed
most of its slack and the demo-
graphically-adjusted unemploy-
ment rate is already effectively
normal.
In our view, the outlook for Ca-
nadian wages rests on the inter-
play of two factors. The first is the
extent to which a softer Canadian
dollar reclaims prior lost compet-
itiveness. Helpfully, some of this
is now happening, even if its
main effect is to render Cana-
dians relatively less overpaid, as
opposed to outright underpaid.
The second consideration is
easily the more important of the
two: the outlook for American
wages. The U.S. remains the
worlds bellwether economy, Can-
adas largest trading partner, and
a free-market crucible where
wages, productivity and profit
margins are locked in constant
battle. Should U.S. wages emerge
victorious for a change, Canadian
remuneration will also benefit.
It comes as welcome news,
then, that a constellation of fac-
tors finally point to accelerating
U.S. wage growth.
First, the U.S. labour market is
tightening. Bracing winter weath-
er in North America had until
recently obscured progress. Final-
ly, job creation seems to be escap-
ing from those icy tentacles, with
a splendid increase of 288,000
jobs in April. We believe this
approximate clip is sustainable
given improving economic cir-
cumstances, delivering around
three million new jobs annually.
As the job market cinches tighter,
this shifts the balance of power
from employers to employees,
boosting wages.
Second, we believe there is less
slack in the U.S. economy than
commonly imagined. The under-
utilization of labour and capital
over the past six years has left
behind the fetid scent of decay,
on the order of a permanent 2
percentage point loss of output.
Thus, upward wage pressures
may be closer to fruition than
they first seem.
Third, workers are becoming
more confident. This is evident in
the rising rate at which they vol-
untarily quit their jobs in favour
of better opportunities. Beyond
the obvious signal this sends
regarding the rising clout of work-
ers vis--vis employers, it also
happens that voluntarily hopping
from one job to another
generates an average 8-per-cent
wage increase all by itself.
Fourth, salaries are already ten-
tatively improving: private-sector
hourly wages now rise by 2.3 per
cent a year, finally outpacing in-
flation and notably improved
from the mid-2012 1.3-per-cent
nadir. Historically, updrafts of this
nature have been sustained for
three to four years, suggesting
that the acceleration is no more
than half done. Strikingly, the U.S.
Treasury Department reports that
personal income-tax receipts rose
10 per cent over the year ending
in the first quarter of 2014, hint-
ing that traditional wage mea-
sures may be failing to fully
reflect the extent of rising comp-
ensation. Providing regulatory
support for higher incomes, a
swell of U.S. states are in the pro-
cess of raising their minimum
wage, with many legislating fur-
ther increases in over the next
several years.
Fifth, surveys show a significant
acceleration in firms wage-hike
intentions, with household-based
surveys echoing that expectation.
Sixth, some payback may be ap-
propriate. U.S. wages fell exces-
sively during the crisis,
undershooting productivity by a
cumulative 6.4 percentage points.
Alas, half of the loss appears to be
the product of long-standing
structural drags such as globaliza-
tion, automation and declining
unionization. But the other half is
credibly available for reclamation.
What of the counterpoint that
the long-term unemployment
rate remains too high to sustain
any sort of wage renaissance? In
actual fact, we find that the long-
term unemployment rate has lit-
tle bearing on wages, likely
because these individuals have al-
ready been marginalized within
the labour force. It is the short-
term unemployed who matter for
wage growth, and this group has
been very nearly winnowed down
to normal levels.
To be clear, nothing in this ana-
lysis argues for a structural
upturn in wages (on this note, the
depressive effects of globalization
are helpfully waning, but automa-
tions effects may be strengthen-
ing). Nor does it present a serious
remedy for inequality. But it is
nevertheless good news for North
American workers that wages are
finally on the cusp of a cyclical
upturn. Businesses may initially
fear this development given the
implication of diminished profit
margins, but they will eventually
find that rejuvenated consumer
spending and snappier economic
growth provides more than ade-
quate recompense.
EMPLOYMENT
U.S. setting the stage for higher wages in Canada
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ERIC LASCELLES
Eric Lascelles is chief economist
at RBC Global Asset
Management.
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THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A B3 REPORT ON BUSINESS
Canadian home prices appear to
be picking up steam.
The gains come even after a
sluggish winter for home sales,
and forecasts from a number of
economists for price growth to
peter out.
Teranet-National Banks house
price index, which tracks 11 cities,
hit a record high in April, with
prices rising 0.5 per cent from
March and 4.9 per cent from a
year earlier.
Home prices are starting to
show early signs of accelerating
even when adjusting for quality,
Toronto-Dominion Bank econo-
mist Diana Petramala wrote in a
research note after the numbers
came out, saying prices have
maintained more momentum
this year than TD economists an-
ticipated.
We continue to believe that
home price growth will moderate
in the second half of 2014, she
added.
In the meantime, Royal Bank of
Canada economist Robert Hogue
says that prices are rising faster
than incomes. And if the current
pace of price growth keeps up,
that could be problematic, he
said. This is starting to get un-
comfortable, because its going to
affect affordability.
Its not going to become an
issue immediately. Declines in
mortgage rates in recent months
have helped to offset price gains
when it comes to affordability, he
said. But at some point interest
rates are going to start moving
up.
With home prices already esti-
mated to be 10 per cent overva-
lued, the risk is for more froth to
gather in the Canadian housing
market, Ms. Petramala wrote.
Digging into the numbers, there
is a wide variation between mar-
kets. Some, such as Winnipeg,
Toronto, Calgary and Vancouver,
saw prices hit new highs in April.
Others saw prices fall.
REAL ESTATE
Home prices
showing
early signs of
accelerating
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TARA PERKINS
REAL ESTATE REPORTER
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A century-old tradition in the sil-
ver market is ending.
The handful of banks that have
determined the global bench-
mark silver value for 117 years
will set the daily precious metal
price for the last time this
August.
The London silver fix is cur-
rently set by three banks over
the phone at noon in London.
Its used by the entire market, in-
cluding the Canadian mint, min-
ers, jewellers, and investors.
But the London Market Fixing
Ltd. was forced to scrap the prac-
tice after Deutsche Bank said it
was going to withdraw from the
process, leaving the price fix op-
erator with only two other
banks, HSBC and Bank of Nova
Scotia.
The operator was unable to
find a replacement for Deutsche
Bank and felt it was unsustain-
able to continue setting the price
with two banks, according to one
person familiar with what tran-
spired.
Wednesdays announcement
comes amid probes of other key
global benchmarks that are also
set by a handful of banks: the
London gold fix and key interest
rate, the London Interbank Of-
fered Rate or Libor.
Regulators are investigating
whether banks manipulated
Libor for their own gain.
Deutsche Bank is one of many
global banks entangled in the
scandal.
It seems the setting apparatus
was not only old but broken,
said Bart Chilton, a former com-
missioner with U.S. derivatives
regulator Commodity Futures
Trading Commission.
In light of the Libor bench-
mark blunders, it is good to see
that changes are coming to other
benchmarks, said Mr. Chilton,
who is now in private practice.
Deutsche Bank, which
announced last year it was exit-
ing most of its commodities
business, resigned from the
benchmark setting process for
gold this week. The bank was
asked by British regulators to
postpone its planned resignation
from the silver board to help
with the orderly wind down of
the silver fix, one person familiar
with the matter said.
It is unclear what will happen
to the gold benchmark, which is
now set by Barclays, HSBC, Bank
of Nova Scotia and Societe Gen-
erale.
The London Market Fixing said
in a statement that it was not in
a position to comment on other
fixings.
The market has three months
to get used to the idea of not
relying on the London fix, which
will be published for the last
time Aug. 14.
In the meantime, the price fix
operator said this time period
would provide an opportunity
for a market-led adjustment.
Bank of Nova Scotia said it
would work with the market to
find an alternative to the silver
fix. HSBC could not immediately
be reached for comment.
Because silver and gold trade
around the clock, there is never
an official closing price, which is
why market participants have
come to rely on the London sil-
ver fix.
For example, the Royal Cana-
dian Mint uses the benchmark to
price its silver coins and bars.
The mint said it was evaluating
options.
It is a hassle. They are used to
using it, said Andrew Leyland,
manager of precious metals
demand at research firm Thom-
son Reuters GFMS.
The market is not going to
collapse because this piece of in-
formation is not there. There will
be more uncertainty, but ulti-
mately these are prices that
trade 24-7, he said.
After 117 years of setting the daily price of silver, the London Market Fixing will publish the benchmark price for the last time Aug. 14. MUNSHI AHMED/BLOOMBERG
COMMODITIES
London silver fix to end this August
With only HSBC and Bank of Nova Scotia left to set the daily price, operator announces end to practice
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RACHELLE YOUNGLAI
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University Health Network
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Canada Pension Plan Investment
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Osler, Hoskin & Harcourt LLP
ROBERT J. BOGART
AGF Management Ltd.
JAMES M. BROWN
BC Hydro
MEREDITH CARTWRIGHT
DonBow Capital Corporation
TERRY L. CREIGHTON
Teva Canada Ltd.
PATRICIA CROFT
Ontario Pension Board
ASHLEY DAFEL
Husky IMS
LISA DE WILDE
TVO
CATHERINE DELUCE
Chestnut Park Real Estate Limited
Brokerage
SUSAN DONIZ
Aimia
JIM ECKLER
Eckler Associates
PETER FULLERTON
Grant Thornton LLP
ANDREA FEUNEKES
Remsoft Inc.
DARRELL LOUISE GREGERSEN
CAMH Foundation
KEITH HALBERT
Tuckamore Capital
KATHRYN JENKINS
Scotiabank
BRIAN KELLY
Genworth MI Canada
SHELLEY LIPON
Canada Health Infoway
JOHN R. MORRISON
Choice Properties REIT
CAROL A. LYNDE
Bridgehouse Asset Managers
STUART MACLEAN
Workers Compensation Board of
Nova Scotia
WILLIAM W. MILLAR
New Flyer Industries
JEFFREY G. MORTON
Piston Ring Service
COLINDA PARENT
Forbes Royalty Corp.
JANIS L. PELESHOK
PELE Mountain Resources
RON A. PERROTTA
Rogers Communications Inc.
STEPHEN SIGURDSON
Manulife Financial
GEORGES A. SOAR
Hugessen Consulting
RAF SOUCCAR
Royal Canadian Mint
IAIN STEWART ERIKA TSE
Glentel Inc.
CATHERINE ZAHN
CAMH
E. CHARLENE VALIQUETTE
Corporate Director
KATHERINE C. VYSE
No matter how long you have been serving as a director, the ICD-Rotman DEP
has something for everyone. Thanks to the first-rate instructors, the content
coverage, and the interaction with other participants, with every session you will
learn something new and current or you will better understand something that
you thought you already knew.
DIRECTORS EDUCATION PROGRAM
E. CHARLENE VALIQUETTE, CORPORATE DIRECTOR, TORONTO DEP 49 ALUMNI, CLASS VALEDICTORIAN
THOMAS M. RAINWATER
Rainwater Asset
Management, LLC.
CITY PROGRAM START APPLICATION DEADLINE
Halifax (Inaugural) October 3-5, 2014 June 30, 2014
Toronto October 17-19, 2014 June 30, 2014
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Montreal (Bilingual) April 10-12, 2015 February 5, 2015
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THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A B5 REPORT ON BUSINESS
I
t is known simply as the Blue,
the largest flawless vivid blue
diamond ever sold at auction, a
pear-shaped gem weighing in at
13.22 carats.
The Blue sold for $23.8-million
(U.S.) at a Christies auction in
Geneva on Wednesday, just one
day after the Graff Vivid Yellow
diamond sold for $16.3-million at
a Sothebys auction in Geneva,
setting a record sale price for a
yellow diamond. The buyer was
identified as Harry Winston Inc.
The two sales, which come after
a rare orange diamond called the
Orange sold for a record $35.5-
million in November, are draw-
ing attention to the growing
demand for investment-quality
coloured diamonds among the
worlds richest investors.
Daniel Struyf, a jewellery spe-
cialist at Christies in Geneva,
said there has been a notable in-
crease in buyer interest in
coloured diamonds, and recent
auctions are drawing investors
from Asia, the U.S. and other
regions. Prices are going up and
up, especially for rarer colours
such as blue, he said.
Were getting more and more
people from around the world
bidding at our auctions, he said
in an interview.
Coloured diamonds account for
just 0.01 per cent of all diamonds
and become coloured when oth-
er elements such nitrogen or
boron are present as the dia-
mond is forming. Their recent
high auction prices are driven by
the quality and rarity of the
coloured stones that have come
available for sale in recent
months, Mr. Struyf said.
The Blue is utterly flawless,
which makes it far more valuable
than even a slightly lower tier of
diamond.
There are no impurities out-
side the stone, and no imperfec-
tions inside the stone. There is
absolutely nothing on the surface
of the stone, and therefore it is
the biggest flawless vivid blue
diamond in the world, Mr. Struyf
said.
Sothebys said the daffodil-
coloured Graff Vivid Yellow dia-
mond, which is 100.09 carats,
eclipsed the prior record price for
a yellow diamond of $12.4-mil-
lion set in 2011 for the Sun-Drop
diamond.
One hundred carats is a mag-
ical number when it comes to
diamonds, David Bennett, chair-
man of Sothebys Switzerland,
said in a statement following the
sale.
Yaniv Marcus, a New York-
based investment strategist at
Leibish & Co., a gem firm special-
izing in fancy coloured dia-
monds, said coloured diamonds
have become more popular with
a broader group of investors as
more people learn about them
from the Internet. Until the late
1970s, they were worth less than
colourless diamonds, but the
trend reversed as people began
to appreciate their rareness.
The hottest market for invest-
ment purposes are diamonds
worth $100,000 to $500,000, Mr.
Marcus said, which is a price
range where investors can better
afford the gems and also can
more easily find a buyer if they
decide to sell.
His firms analysis shows
coloured diamonds have out-
stripped all major stock market
indexes over the past 18 years
based on their rate of return to
buyers, Mr. Marcus said.
Mr. Marcus said investment-
grade diamonds are not necessa-
rily bought by investors who in-
tend to keep them locked in a
safe until reselling them for a
profit. Those gems that are in set-
tings, he said, are at least occa-
sionally worn by their
purchasers, who are often jewel
lovers.
Obviously were not exposed
to the type of events that these
people attend to wear these
things, so thats why you may not
hear about it, he said. These in-
dividuals are also very secretive,
private individuals. Theyre not
in the spotlight.
While the buyer of the Blue was
on the phone, Mr. Marcus said
purchasers are often present in
person.
Normally, theyll be at the
location because there is an emo-
tional connection to that dia-
mond, and they want to feel that
rush when they say, Sold, he
said. At these levels, its really
beyond high-net-worth individu-
als Its a completely separate
class of their own.
JEWELS
Recent interest in auctions for blue, yellow and orange varieties of the gem indicate a growing appreciation for rarity among investors
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Blue, the largest flawless vivid blue diamond yet found, sold for
$24.2-million (U.S.) at a Christies auction on Wednesday. MARTIAL TREZZINI/AP
JANET McFARLAND
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Colourful bidding: A trend in diamonds
CONFERENCE OF MONTREAL
20
th
EDITION
JUNE 912, 2014
Fairmont The Queen Elizabeth
PRESENTING PARTNER PRESTIGE PARTNERS
SUPPORTING PARTNERS
MAJOR PARTNERS
ASSOCIATE PARTNERS
MEDIA PARTNERS GOVERNMENT PARTNERS
Christine
Lagarde
Managing Director,
International
Monetary Fund
(IMF)
Lawrence H.
Summers
Charles W. Eliot
University Professor,
Harvard Universitys
Kennedy School of
Government;
U.S. Secretary of the
Treasury, 1999-2001
lafur Ragnar
Grmsson
President,
Republic of Iceland
Nizar
Al-Adsani
Deputy Chairman
and Chief
Executive Officer,
Kuwait Petroleum
Corporation (KPC)
Elizabeth
Corley
Chief Executive
Officer, Allianz
Global Investors
Amadou
Diallo
Chief Executive
Officer,
DHL Freight
Russell K.
Girling
President and Chief
Executive Officer,
TransCanada
ngel
Gurra
Secretary-General,
Organisation for
Economic
Co-operation
and Development
(OECD)
Grard
Mestrallet
Chairman and Chief
Executive Officer,
GDF SUEZ
Christian
Noyer
Governor, Bank
of France, and
Chairman, Bank
for International
Settlements (BIS)
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THE FOUNDATION FOR THE
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B6 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 REPORT ON BUSINESS
Yet, Mr. Geithner says more
than once in his book, Stress
Test: Reflections on Financial Crises,
that he never shared their
strength of conviction that
there was a right way to do things
and a wrong one.
Mr. Geithner, who voted for
Ronald Reagan in the 1980s and
Bill Clinton in the 1990s, distrusts
bias, experience, ideology and
politics. He was guided by evi-
dence, and was relentless in his
analysis of it.
I lived for this stuff even when
it was the scariest and the hard-
est, he said in a telephone inter-
view this week. I loved coming to
work. Its just like the most inter-
esting, consequential thing you
could do even when it was hard.
Americas accidental treasury
secretary now is seeking his place
among the men and women who
calmed a global financial panic
like few living people had ever ex-
perienced. Mr. Geithners book is
a sincere, dispassionate telling of
what he saw, what he did and
what he wishes he could do over
again. At a minimum, Mr. Geithn-
er was one of a small group of
people who figured out a way to
keep a calamity from turning into
something much worse. His
reflections amount to a training
manual for the next generation of
crisis fighters that Mr. Geithner
himself had to do without.
Mr. Geithner has his share of
critics, but few have been harder
on him than he is on himself as
he reflects on an extraordinary
period during which there were
few obviously correct answers. He
makes no excuses for an abysmal
debut performance at which he
was supposed to unveil a plan to
calm Wall Street, and instead
caused stock markets to plunge 5
per cent. My speech sucked,
Mr. Geithner writes.
Stress Test suffers from lack of
suspense. Thousands of pages
have been written about those
years, including other memoirs
and an exhaustive report by the
Financial Crisis Inquiry Commit-
tee. Mr. Geithners book does lit-
tle to change the accepted
narrative.
While his crisis contemporaries
were writing, Mr. Geithner was
working. He left the New York Fed
at the end of 2008 to become Mr.
Obamas treasury secretary, a po-
sition he held until early 2013.
The only American veteran of the
financial crisis who served longer
was former Fed chairman Ben
Bernanke, who retired earlier this
year. (W.W. Norton & Co. said last
week that it will publish Mr. Ber-
nankes memoirs in 2015.)
That commitment is what sepa-
rates Mr. Geithner from so many
others. Missing from the daily
news stories and cable television
commentary during the crisis was
the immense personal toll those
years took on subjects of those
reports. Mr. Geithners memoirs
gets dark: He acknowledges that
he spent years absent from his
familys life; yet, there was noth-
ing he could do to correct it.
There was no escape from the
stress of duty and the fear of what
could go wrong if he screwed up.
I dont miss public life, Mr.
Geithner said in the interview. I
felt like I had my share of hard,
consequential things.
Mr. Geithners memories are
dark, but his outlook is brighter.
He clashed continuously with
Washingtons hyper-partisan po-
litical system, and had little good
to say about Congress at the time.
Now, he says he recognizes that
the system worked when it really
needed to, and that the partisan
fever that currently grips the U.S.
will pass.
And he is highly skeptical of
those who argue that the U.S.
economy has changed so dramat-
ically that it never again will be as
strong as it was before the crisis.
Hes come to that conclusion the
way he always has, through a
hard analysis of the evidence.
Most of the darkness you hear
today about the economy is really
about the aftershocks of the trau-
ma caused by the crisis, he said.
Once those transitory factors
fade, you should be able to see an
economy that is getting strong
and then people can reassess over
time what was temporary and
what was more durable.
They will be assessing Mr.
Geithners legacy at the same
time.
FROM PAGE 1
Geithner: I lived for this stuff even when it was the scariest and the hardest
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
Timothy Geithner, left, became U.S. President Barrack Obamas point man in dealing with the financial calamity of
2008. His new book serves as a training manual for the next generation of crisis fighters. EVAN VUCCI/ASSOCIATED PRESS
On the Obama administrations
proposal for a bank tax, which
eventually died:
We thought we should make
it crystal clear through the
tax system that were going
to impose a fee on banks so
people understand that they
are going to pay the cost of
their rescues. We did the res-
cue in a very different way, a
very creative way, a very
forceful way and we ended
up earning a very positive
return for the taxpayer. I
dont think that lessened the
sense of outrage.
On the state of the U.S. economy:
If you compare us, not to
Canada, which has a lot of
strengths, a lot to admire in
Canadas economic perform-
ance and economic policy,
but if you compare us to
Japan, or Europe or other
major industrialized coun-
tries, you would like our
challenges. They are better
challenges to have than what
those countries face.
On those challenges:
We have diminished confi-
dence in the equality of op-
portunity that people face.
What you do in this country
still depends too much on the
colour of your skin or how
rich your parents are. Those
are things you should worry
about because they are the
basic ideal on which America
was based.
IN HIS OWN WORDS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
BUSINESS CLASSIFIED
TO PLACE AN AD CALL: 1-800-560-0521 77 EMAIL: ADVERTISING@GLOBEANDMAIL.COM
PROPERTY TRUST (FCD.UN-TSXV)
Joint Ventures & Partial
Interest Acquisitions
For Investment Properties
416
-
635-0221
www.FirmCapital.com
Real Estate
Joint Venture
Specialists
905.882.8000 macphersonbuilders.com
COMMERCIAL REAL ESTATE
For Sale
Prime Development Property
Victoria, BC 21+ ACRES
In heart of City of Langford - minutes to downtown Victoria BC
Designated Mixed Use Employment Center in OCP
21+ Acres Adjacent to New Overpass on TCH to service Bear
Mtn and Skirt Mtn developments
New Roads and Services to Property
More information at www.spencergateway.com
Ron L MacDonald, FRI, ARP
250-360-6493
ronmacdonaldbc@gmail.com
B
E
A
R
M
T
N
P
K
W
Y
L
E
I
G
H
R
D
T
R
A
N
S
C
A
N
ADA HI GHWAY
Cushman &Wakefeld Ltd., Brokerage
*Sales Representative
FOR SALE
INVESTMENT SITE
STEELES AVENUE EAST
& KENNEDY ROAD
100% Leased
6.8% Cap Rate
Long-Term Tenants
24,098 sf Commercial
Building
Corner Property
ADAM BRONSON*
adam.bronson@ca.cushwake.com
(416) 756 5467
STEPHEN CONNELL*
stephen.connell@ca.cushwake.com
(416) 756 5445
F OR SAL E - EASTERN ONTARI O
MULTI - FAMI LY OPPORTUNI T Y
CORP
WWW. PRIMECORP. CA
AIK ALIFERIS, B.B.A.
PRINCIPAL/BROKER
aaliferis@primecorp.ca
SAMFIRESTONE, LL.B.
PRINCIPAL/BROKER
srestone@primecorp.ca
EXCLUSIVE ADVISORS FOR THIS OFFERING, PRINCIPALS ONLY CONTACT:
PRIMECORP COMMERCIAL REALTY INC., BROKERAGE
888-720-2020, ext. 222 / 234
EXCELLENT MID MARKET
INVESTMENT - 53 SUITES
Two well maintained 4-storey properties
Suite Mix: 28 one-bedrooms, 23 two-
bedrooms & 2 three-bedrooms
Adult-only buildings - average 79% seniors
Well located in established residential
locations close to shopping & amenities
Low maintenance, Low vacancy
GTA INVESTMENT PROPERTIES
FOR SALE
66,000 SF SHOPPING CENTRE
7.06 ACRE SITE; VERY WELL MAINTAINED HIGH TRAFFIC LOCATION
APPRAISED NOI - $1,778,955
ASKING PRICE - $29,950,000
MIXED-USE BUILDING
LOCATED IN THE HEART OF THE BEACHES
RETAIL/OFFICE/RESIDENTIAL
3 STOREY ON 5,000 SF LOT
ASKING $5,870,000
DALE BENSETTE, Broker & VP
519-672-9891 Ext 314
dalebensette@royallepage.ca
Royal Lepage Triland Realty, Independently
Owned and Operated Brokerage
FOR SALE
623 COLLEGE ST. Toronto
* Fully Renovated including rear
and 4th fl. Addition
* All new mechanicals
* Main floor retail
(10 year lease in place)
* 3 ultra modern apartments
$2,300,000
Call Sam Taggart Broker of Record
416-402-6402
519-438-5588
Brent Rudell, Broker of Record
Tom Rudell, Owner/Sales Representative
DTZ Barnicke London Windsor Sarnia Ltd.
Real Estate Brokerage, Independently Owned and Operated
101-379 Dundas Street | London ON, N6B 1V5
FOR SALE
DOWNTOWN LONDON PARKING LOT
Rare Opportunity
Future Development Potential
Centrally located parking lot
Suitable Income
70,837 sf / 1.6 acres
Zoned DA1, D350
Access from Dundas St. King St. & Clarence St.
Asking Price $10,600,000
482 sq.ft. - 1,162 sq.ft.
10 ft. Ceilings
Parking Available
Totally Finished Space with
Bath & Kitchen Areas
Secure New Building
Queen East/Leslieville Area
From $242,900
TIM BOSWORTH
416.368.5262
worklofts.ca flatironlofts.ca
COMMERCIAL CONDO LOFTS
DIVIDENDS
DIVIDENDS
Notice is hereby given that the following dividends have been declared.
ISSUER ISSUE RECORD DATE PAYABLE DATE RATE
AltaGas Ltd. Common May 26, 2014 June 16, 2014 $0.1475
AltaGas Ltd. Pref A June 17, 2014 June 30, 2014 $0.3125
AltaGas Ltd Pref C June 17, 2014 June 30, 2014 $0.275 US
AltaGas Ltd Pref E June 17, 2014 June 30, 2014 $0.3125
Husky Energy Inc. Common June 5, 2014 July 2, 2014 $0.30
Husky Energy Inc. Series 1 June 5, 2014 June 30, 2014 $0.27813
Preferred
Keyera Corp. Common May 23, 2014 June 16, 2014 $0.215
Open Text Corp. Common May 23, 2014 June 13, 2014 $0.1725
Pembina Pipeline Corp. Common May 25, 2014 June 13, 2014 $0.145
Pivot Technology Series A May 26, 2014 June 3, 2014 $0.00407671
Solutions, Inc. Preferred
SNC-Lavalin Group Inc. Common May 22, 2014 June 5, 2014 $0.24
Dividend Notice
Notice is hereby given that on
May 8, 2014, the Board of Directors
of Information Services Corporation
declared a quarterly dividend of
CAD$0.20 per Class A Limited Voting
Share. The dividend is payable on or
before July 15, 2014 to shareholders
of record at the close of business on
June 30, 2014. The dividend has been
designated as an eligible dividend
pursuant to the Income Tax Act.
By Order of the Board
Kathy Hillman-Weir
Corporate Secretary
Dated: May 9, 2014
Regina, Saskatchewan
www.isc.ca
FOR SALE
Vernon Land Opportunity
> 1,344 acres of land situated between
Predator Ridge, Sparkling Hills and
Vernon has incredible Lake Okanagan
and Kalamalka Views.
> Current zoning is Non Urban with
approx. 44 acres in the ALR
Marshall McAnerney* & Chad Biafore
+1 250 763 2300
*Personal Real Estate Corporation
3 OAKVILLE/MILTONLAND
PROPERTIES
FOR SALE
Acres for townhouses or condo
buildings short term in Oakville
Acres for Long Term potential
residential in Milton
Acres for commercial short term
in Oakville
Chris Dosne
Cell: 416.578.2343 O: 905.450.8300
CENTURY 21 MILLENNIUM Inc.
www.chrisdosne.com www.chrisdosne.com
chris.dosne@century21.ca
Your all-access digital pass
tgam.ca/signup
GLOBE
UNLIMITED
BUSINESS TO BUSINESS
LEGALS
BUSINESS TO BUSINESS
SEEKING FOOD RELATED COMPANY
for sale, $200k-$1.5m in earnings. Email
food@osmm.biz or call 416-315-5150
BUSINESS OPPORTUNITIES
A 97 ROOM RETIREMENT HOME 2.5 hrs
from Toronto. $3.8M. Amit Kapoor. Right
At home Realty. Cell 647-287-8555.
RETIREMENT HOME in Toronto fully
occupied, 83 beds NOI: 780K price: 8.9M.
416-999-4300.
BUSINESS OPPORTUNITIES
SERIOUS ONGOING INCOME catering to
expl osi ve seni or market. $55k
investment. Call Wally 1-888-242-0803.
CAPITAL WANTED/AVAILABLE
PROJECT FINANCING avail. Real Estate,
Oil & Gas, & clean energy. WTE. Min.
$10M. businesscapital@hotmail.com
VINCE CALICHA, DAVID
NELSON and MARK LINDSAY
PLEASE TAKE NOTICE THAT a claim
has been commenced against you in
the Ontario Superior Court of Justice
bearing Court File No. CV-13-489345.
On April 30, 2014, the Ontario Superior
Court of Justice issued an order allow-
ing for service to be effected by way
of publishing this notice.
If you fail to defend the action within
the period of time required under
the Rules of Civil Procedure, further
proceedings including judgment may
be taken against you without notice
to you.
For additional information, you may
contact counsel for the Plaintiff,
Norton Rose Fulbright Canada, at (416)
216-4000 (Attention: Nicholas Daube).
MEETING NOTICES
ONTARIO MOTOR
VEHICLE INDUSTRY
COUNCIL
Notice of Annual and
General Meeting of
Members
Toronto, May 21, 2104
NOTICE IS GIVEN that the 2014
Annual and General Meeting
of the Members of ONTARIO
MOTOR VEHICLE INDUSTRY
COUNCIL (OMVIC) will be held
in the Victoria Room, 2nd floor,
Cambridge Suites Hotel, 15
Richmond Street East, Toronto
ON M5C 1N2, at 1:30 p.m. on
Wednesday, May 21, 2014 (the
Meeting) for the following
purposes:
1. To receive the financial
statements of OMVIC for the year
ended December 31, 2013 and the
auditors report on the statements;
2. To elect directors;
3. To vote on appointing Sloan
Partners, LLP as auditors of
OMVIC and authorize the board
of directors to fix the auditors
remuneration;
4. To transact such further business
as may properly come before
the Meeting or any adjournment
thereof
Toronto, March 24, 2014
BY ORDER OF THE BOARD OF
DIRECTORS
Nazreen Ali
Secretary-Treasurer
FRONT STREET
VALUE CLASS
SPECIAL MEETING OF
SHAREHOLDERS
NOTICE OF MEETING
Notice is hereby given that Front
Street Value Class will convene a
special meeting of shareholders
on June 24, 2014 at 10:00 a.m.
at 199 Bay Street, Suite 4000,
Toronto, Ontario. The record date
for determining shareholders
entitled to receive notice and vote
at the meeting is May 23, 2014.
By Order of the Board
Gary Selke
President and Chief Executive
Officer
May 15, 2014
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TENDERS
HOME HARDWARE
STORES LIMITED
Accepting tenders to purchase
approximately 8 acres of vacant
land at the northeast corner of
Hurontario and Poplar Sideroad,
Collingwood, ON
All tenders must be delivered
before 2:00 pm on July 8, 2014.
For confidential information
package and instructions, contact
Barbara J. Sutherland at
519-664-4638
barbara.sutherland@
homehardware.ca or
Evelyn Metzger at 519-664-2252
evelyn.metzger@
homehardware.ca
GLOBE UNLIMITED tgam.ca/signup
THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A B7
OLYMPUS UNITED FUNDS FONDS UNIS OLYMPUS
THE CLASS ACTION AGAINST RBC IS AUTHORIZED
A class action against the Royal Bank of Canada and RBC Capital Markets
Corporation (hereinafter RBC) was authorized on November 1st, 2013, by
the Superior Court, for the benefit of the following persons:
All Canadian retail investors who purchased one of the Olympus
United Funds Corporation shares from June 27, 1999 to June 29,
2005, and who had outstanding shares in said corporations as of
June 29, 2005.
Persons who were related to John Xanthoudakis or to the Norshield
Financial Group are excluded from the Class.
The person representing the Class members is Mrs. Sheila Calder. The
attorneys for the Class are Sylvestre Fafard Painchaud (www.sfpavocats.
ca/en/rbc, 514-937-2881).
Some of the common questions to be addressed by the Court are:
Did RBC lend its credibility to the Norshield Financial Group and the
Olympus investment structure?
Did RBC participate in the creation and the development of a
fraudulent financial product?
Did RBC authorize transfers of funds and/or assets from the
Norshield financial structure which otherwise could have benefited
the Group?
Should RBC be ordered to reimburse the losses incurred by Class
members following their investment in Olympus United Funds?
Mrs. Calder asks the Court that RBC be ordered to:
Pay to the Class members the value of their unredeemed shares
of Olympus United Funds Corporation as of June 29, 2005, less
amounts received since, and less damages caused by or attributable
to KPMG LLP.
RBC opposes this class action.
A Class member can exclude himself/herself from the class action by June
17, 2014.
This is a simplified notice. A detailed notice, including
exclusion instructions is available at the office of the Clerk
of the Superior Court of the district of Montreal and on
www.sfpavocats.ca/en/rbc, or by mail on demand. In case of a discrepancy,
the detailed Notice takes precedence.
THE PUBLICATION OF THIS NOTICE WAS ORDERED BY THE COURT.
Another notice will be published upon final judgment
B8 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
Streetwise
Proponents of multi-billion-dol-
lar liquefied natural gas (LNG)
projects need to know that Brit-
ish Columbia is different than
the rest of Canada, says Vancou-
ver energy lawyer David Bursey
at Bull Housser & Tupper LLP.
Bursey says the biggest challeng-
es facing LNG projects revolve
around social licence and
require local expertise.
Meanwhile, law firms in Alber-
ta are pressing their advantage as
longtime advisors in the oil patch
to claim a stake on the burgeon-
ing LNG market. Tom Valentine,
in the Calgary office of Norton
Rose Fulbright Canada LLP, says
the lions share of the LNG
work is already going to Calgary
firms with big energy practices.
Lexpert contributor Brian Bur-
ton reports on legal competition
in the LNG industry at
www.lexpert.ca/globe
ON THE WEB
REPORT ON BUSINESS
FINANCE & CORPORATE LAW
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
With the legal bill for disassem-
bling Nortel Networks Corp.
heading into billion-dollar terri-
tory, lawyers who work on insol-
vencies are facing increasing
pressure to keep their billable
hours under control.
Just before the launch this
week of the joint Canada-U.S.
trial to divide up whats left of
Nortel, the Ontario Superior
Court judge hearing the Cana-
dian side of the proceedings
called the $1.3-billion bill for legal
and other professional fees
completely shocking in a pre-
trial hearing.
Lawyers and spokesmen for the
Nortel pensioners who have seen
their benefits slashed have also
criticized the costs, pointing at
lawyers involved in the case who
charge rates of $800 to $1,000 an
hour.
However, concern about the
costs lawyers run up in bankrupt-
cies and restructurings has
spread far beyond the spotlight
now shining on Nortel. Lawyers
say judges across the country are
becoming increasingly likely to
challenge what they see as over-
lawyering or runaway bills on
insolvencies.
David Jackson, a Winnipeg law-
yer with Taylor McCaffrey LLP
who chairs the bankruptcy sec-
tion of the Canadian Bar Associa-
tion, says increased scrutiny of
insolvency fees has been a major
topic of discussion at the insol-
vency bar conferences over the
past year.
Theres no question, Mr. Jack-
son said. I think its an issue that
has been not just of concern to
the courts and the judges but to
all the other stakeholders.
He says creditors and court-
appointed monitors in insolven-
cies, which are usually account-
ing firms, are also paying closer
attention to large legal bills.
In two recent rulings in cases
far removed from the massive
size and complexity of the Nortel
trial, judges have gone over bills
closely.
In a decision out of London,
Ont., from January, a judge
declared that $255,000 in legal
fees charged by national law firm
Borden Lander Gervais LLP in the
receivership of a cattle farm was
nothing short of excessive.
Ontario Superior Court Justice
Andrew Goodman knocked the
bill down to $157,500, citing a
lack of proportionality and rea-
sonableness in the firms fees
and rejecting assertions in affida-
vits from BLG lawyer Roger Jai-
pargas that the work was
justified.
In my review of fees there
appears to be excessive work
done by senior counsel on rou-
tine matters, the judge ruled.
The decision is under appeal. Mr.
Jaipargas declined to comment.
In an insolvency ruling released
earlier this month, Ontario Supe-
rior Court Justice David Brown
slashed by more than half the
$73,000 in bills from Ernst &
Young Inc. and law firm McCar-
thy Ttrault LLP.
He ends his ruling by calling for
capped fees for routine tasks in
such cases and predicts that we
are reaching the end of the era
where the fees for professional
services, such as the giving of
legal or insolvency advice, are
calculated and billed on an hour-
ly rate basis.
Last year, e-mails surfaced in
U.S. litigation over bills in an
insolvency that were charged by
giant law firm DLA Piper, and
they made for water-cooler con-
versation in law firms every-
where. In the e-mails, the firms
lawyers appeared to brag about
running up the clients bills. In
one, a lawyer writes that ran-
dom people [are] working full
time on random research pro-
jects in standard churn that bill,
baby! mode.
Richard McLaren, a law profes-
sor at University of Western On-
tario, said judges are best
positioned to force insolvency
lawyers to keep a lid on costs.
If the judges take the initiative
and start being more rigorous,
that will push the lawyers to be
more vigilant themselves in
terms of whats going on in their
own firms, he said. Thats
important, to really change the
behaviour.
INSOLVENCY
Nortel tab boosts pressure on law firms
Judges increasingly balking at runaway legal costs, with some saying the days of hourly rates nearing an end
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JEFF GRAY LAW REPORTER
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Nortel pensioners protest outside the bankruptcy trial this week. Bills for legal and other professionals working on
the case have soared past $1-billion, while pensioners have seen their benefits slashed. FRED LUM/THE GLOBE AND MAIL
The incentives that companies
use to encourage their investors
to back debt refinancings are un-
der the spotlight again, after a
contentious consent fee was
recently offered by a Canadian
firm.
IBI Group Inc., which special-
izes in consulting on architec-
ture and engineering projects,
has asked investors who own
some of its convertible deben-
tures to consider extending their
maturity date five years into the
future. The converts in question
are scheduled to mature on Dec.
31, 2014 and IBI hopes to move
that date to 2019.
To get the note holders onside,
IBI has offered to pay them a
consent fee that amounts to 7
per cent of their holdings. How-
ever, instead of offering the fee
to all note holders if the deal
goes through, IBI will only pay
the incentive to those who vote
in favour, raising concerns about
fairness.
At the moment, each of the
note holders is treated equally,
but some argue that the new
proposal will split them into two
distinct groups. Why should
there be two classes of bondhol-
ders? asked Ehoud Farine, who
owns some of the converts.
Mr. Farine is particularly upset
because, as a retail investor, the
7-per-cent consent fee adds up
to a meaningful amount some-
thing he would not want to miss
out on if the deal, which he
does not like, goes through.
Frustrated, he likens the fee to a
bribe, because he worries unso-
phisticated investors will jump
at the offer without understand-
ing the ramifications such as
moving their maturity date
behind two other sets of con-
vertible debentures.
In addition, IBI has also
required note holders to register
their votes by May 26. I feel like
Ive had a gun to my head, he
said.
IBI did not return a request for
comment.
Four senior Canadian lawyers,
all of whom asked not to be
named because they arent
actively involved in IBIs case,
said consent fees are rather
common in debt refinancings,
but the size of the fee, and
whether that affects voting be-
haviour, is worthy of discussion
among regulators and the legal
community.
Consent fees worth up to 3 per
cent of an issue normally dont
ruffle any feathers recent
examples include a Detour Gold
refinancing, which paid a 0.5-
per-cent consent fee, as well as a
Great-West Lifeco refinancing
that paid 1.75 per cent. But, at 7
per cent, IBIs fee is well above
the norm.
It is a fine line, and [the size
of the fee] is something that
every organization and every
board needs to look at it, said
David Salmon, senior vice-presi-
dent at Laurel Hill Advisory
Group, which often advises com-
panies on proxy contests, refin-
ancings and mergers and
acquisitions.
Another consideration in the
debate on fairness: the retail
investor base. Convertible
debentures are commonly held
by unsophisticated investors,
and anywhere between 10 and
40 per cent of retail investors
typically wont vote on proxy
issues sometimes simply
because they dont understand
the issues or dont pay close
enough attention, meaning they
could lose out on a meaningful
payout simply for not voting.
In most consent fee cases,
these concerns arent an issue
because bonds are normally held
by institutional investors. There
is a level of sophistication with
those individuals, Mr. Salmon
said. With a retail investor base,
its a different ball game.
While all these issues swirl,
there is an easy way to make
them subside. If we all got 7
per cent, itd be less of a fight,
Mr. Farine said.
GOVERNANCE
IBI Group vote puts
consent fees in spotlight
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TIM KILADZE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A B9 REPORT ON BUSINESS
A
nyone want to buy a used
department store chain?
Make that well-used?
Sears Holdings Corp. has put
its Canadian subsidiary, Sears
Canada Inc., up for sale. This is
no big surprise: Sears Holdings
essentially signalled that the Ca-
nadian operation was in play
two years ago, when it reduced
its stake in Sears Canada to 51
per cent from 95 per cent.
But what the parent company,
controlled by hedge fund billion-
aire Edward Lampert, has now
put up for sale is a mere shell of
what was there two years ago.
Mr. Lampert has seen to that
by selling off huge swaths of
Sears Canadas most valuable
real estate and cashing in, liter-
ally, on its best locations.
Sears Canada has raised more
than $1-billion in the past two
years through the sale of 10 store
leases and a real estate joint ven-
ture including the companys
most-coveted flagship urban
locations, such as Torontos
Eaton Centre and Vancouvers
Pacific Centre.
Hopes for a substantial turn-
around in Sears Canadas opera-
tions faded when CEO Calvin
McDonald quit last September,
apparently fed up with Mr. Lam-
perts zeal to sell assets rather
than invest in them.
From that point on, Sears Can-
ada became, essentially, a real
estate play.
And Mr. Lampert, having al-
ready cashed in on the quickest
and easiest real estate sales, ap-
parently would prefer to leave
the rest to someone else.
Whats left today is a gutted
company with struggling opera-
tions, and a portfolio of subur-
ban and small-market locations
that wont be highly attractive to
any potential new entrant to
Canadas notoriously challenging
retail market.
Sears Canada is still sitting on
116 department stores which
in a market such as Canadas,
with its recent influx of new
competition and relatively thin
supply of prime retail real estate,
must be worth something to
someone.
The question is, who? There
may be individual buyers inter-
ested in specific locations, but
its hard to see a retailer who
would want to purchase all
the Sears stores as a package
deal.
Newcomer Nordstrom Inc. is
focused on high-profile urban
locations (including several that
Sears has already vacated). Wal-
Mart Stores Inc. is already well
represented in the suburban
retail space. Ditto Hudsons Bay
Co.
There are other potential speci-
alty retail entrants to Canada,
but the Sears stores are much
too big to suit their needs.
Target Corp. may be well-suited
to Searss suburban mall space,
but its ambitious Canadian
expansion is on hold. Target was
once talking about opening as
many as 200 stores in Canada;
now, with disappointing sales
and mounting losses, the talk is
that Target may actually look at
closing some of the 124 locations
it opened last year, its first year
in Canada.
Indeed, Targets Canadian
stumbles present a caution flag
for any foreign retailer looking at
Canada even further thinning
the ranks of possible suitors for
the Sears Canada assets.
As a continuing operation,
Sears Canada remains chal-
lenged, seen as a tired brand un-
able to find its place in Canadas
rapidly changing retail land-
scape.
If you exclude gains from the
real estate sales, Sears Canada
lost nearly $200-million last fis-
cal year.
On the upside, it does have a
clean balance sheet, with more
than $500-million in cash (even
after last years $509-million spe-
cial-dividend payment) and
almost no debt.
But the purge of prime loca-
tions hasnt left it well position-
ed to mount a serious charge
under new ownership.
The bottom line is, this is con-
siderably less of a company than
it was two years ago, when Sears
Holdings sold off the first big
chunk of it. Its not going to be
an easy sell.
Perhaps, like any well-used ve-
hicle, the time may have come
to simply sell it for its parts.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ROB Insight is a premium com-
mentary product offering rapid
analysis of business and economic
news, corporate strategy and policy,
published throughout the business
day. Visit the ROB Insight home-
page at tgam.ca/rob-insight for
analysis available only to subscrib-
ers.
ROB INSIGHT RETAIL
Sears Canada for sale, but dont expect door-crashers
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DAVID PARKINSON
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I would draw the conclusion
that the market is cool to this
transaction, said David Tawil,
president of hedge fund Maglen
Capital in New York. But only
time will tell.
Sears move to put its Canadian
business up for sale underlines
the continuing weakness of its
business. But potential suitors
ranging from Macys Inc. to land-
lords are spooked by a soft do-
mestic retail market in which U.S.
discounter Target Corp. has strug-
gled since its launch here in 2013.
Besides grappling with Sears
poor financial performance, a
would-be buyer also faces poten-
tial future pension liabilities and
a deal with U.S. financial services
player JPMorgan Chase & Co.,
which runs Sears lucrative credit
card business, that will need to be
renewed in a couple of years and
could create more headaches,
industry sources said.
Some landlords may try to buy
back a few of their Sears store
locations but they generally view
a deal as attractive only at a rea-
sonable price and terms, observ-
ers said.
Macys of Cincinnati is a depart-
ment-store retailer in the mid-
market segment close to Sears
Canada. But the chief executive
officer Terry Lundgren has not
been interested in Canada and
has been more interested in Chi-
na, Macys chief financial officer
Karen Hoguet told analysts on
Wednesday.
Other U.S. chains, such as J. C
Penney and Kohls, have shown
interest in Sears in the past but
are focused on improving their
U.S. operations, with the Ameri-
can retail market generally per-
forming better than its Canadian
counterpart.
Desjardins Securities retail ana-
lyst Keith Howlett said he doesnt
expect Macys or Kohls to be in-
terested in anything more than
acquiring some of Sears mall
store sites to enter Canada. The
process being initiated by Sears
Holdings will determine whether
or not these two retailers harbour
long-term thoughts of entering
Canada.
Even so, Sears shareholders
have already benefited from
generous dividends that the com-
pany has issued over the past
year or so. Sears Holdings has
been going through a systematic
liquidation of its assets for a
number of years now, Mr. Tawil
said. Eddie Lampert has been
able to orchestrate the largest liq-
uidation of all time outside of
court restrictions or mandates.
He said most liquidations
involve insolvent companies that
are being restructured under a
court bankruptcy process, to the
benefit of creditors. But the Sears
liquidation has benefited the
retailers shareholders, including
the large dividends.
Despite uncertainty about
potential buyers, some European
and Asian retailers are still inter-
ested in coming to Canada some
time in the future. British cheap-
chic chain Primark, which
announced recently it plans its
first store overseas in the U.S.,
could consider Sears as a launch-
ing pad in Canada, observers said.
A company spokesman could not
be reached. Primarks owners are
part of the wealthy Canadian
Weston family, which owns high-
end fashion chain Holt Renfrew &
Co., so it is familiar with this
country. The Galen Weston family
also controls Loblaw Cos. Ltd.,
Canadas largest grocery retailer.
Japanese-owned Uniqlo, which
also sells affordable fashions, is
now looking for stores in Canada,
although it may not find the
Sears locations in high-profile
enough locations. Uniqlo has
space blocked off for it in Toron-
tos high-performing Yorkdale
Shopping Centre, sources have
said.
The remaining Sears stores are
mainly in the suburbs or smaller
centres, and Uniqlo tends to look
for high-profile urban locations
for its first launches.
Besides rivals and major land-
lords and pension funds, other
potential Sears suitors include
private equity or retail turn-
around groups such as Sun Cap-
ital and Hilco or a domestic
retailer, such as Hudsons Bay Co.,
wanting to foreclose new
entrants, Mr. Howlett said.
Mr. Howlett anticipates that
Sears Canada will declare a spe-
cial dividend in 2014, no matter
how its exploration of strategic
options progresses.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
With files from Bertrand Marotte
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sears Canada (SCC)
Close: $16.30, up 54
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FROM PAGE 1
Sears: Best bet for a sale may come from European and Asian retailers
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9
U.S. retailers may not be interested in buying Sears Canada in light of
Targets struggles here. Searss recent real estate sale has also deprived the
company of its most attractive assets. BRENT LEWIN/BLOOMBERG NEWS
I would draw the conclusion
that the market is cool to this
transaction. But only time
will tell.
David Tawil
President, Maglen Capital
The federal Trade Ministers
remarks follow Ottawas op-
position last week to allowing
Russia to join the Organization of
Economic Co-operation and De-
velopment (OECD), an exclusive
global forum of 34 countries.
Earlier this year, Russia seized
Ukraines Black Sea peninsula
region of Crimea, and the West
believes Moscow is behind pro-
Kremlin separatist rebels who
have taken control of cities in
eastern Ukraine.
The Alberta government said it
will not only drop out of the 21st
World Petroleum Congress, but
will ask Canadian companies that
choose to attend the event to
avoid interacting with Russian
officials. Alberta is home to a sig-
nificant number of Canadians
with Ukrainian heritage.
Suncor said it has cancelled
plans to attend in light of Rus-
sias move on Ukraine. We feel
WPC is important, however, giv-
en the uncertainty in the region
we have chosen to not attend,
Sneh Seetal, a spokeswoman for
the Canadian company, said in a
statement. Suncors operations
are focused in Canadas oil sands,
but it has operations around the
world. It also has global partners.
Canadian political leaders have
condemned Russias aggressive
actions in Ukraine for months,
but the boycott of the energy
conference marks the first time
players in Canadas energy sector
have publicly denounced Mos-
cows moves.
Alberta stands with the people
of the Ukraine, Alberta Premier
Dave Hancock told reporters.
Faced with the ongoing violence
and the violation of the Ukraini-
an sovereign territory, we have
made the decision to withdraw
all of our provincial support for
the World Petroleum Congress.
The Leduc-Nisku Economic De-
velopment Association and the
Edmonton International Airport
have also dropped out, noting
they are partners with the Alber-
ta government and are following
its example.
Other Canadian companies, or-
ganizations, and provincial
governments listed on the WPCs
list of exhibitors include: Calfrac
Well Services Ltd., the Canada
Eurasia Russia Business Associa-
tion, Enerflex Ltd, Pacific
Rubiales Energy Corp., the World
Petroleum Council Canada, Que-
bec, and Nova Scotias Depart-
ment of Economic and Rural
Development and Tourism.
Executives at Enerflex and Pa-
cific Rubiales were travelling
Wednesday and unavailable to
comment. Representatives from
the other organizations were ei-
ther unable to comment or did
not return calls or e-mails.
The WPC takes place every
three years and is a chance for
major energy players to connect
with one another and discuss
challenges facing the industry.
Roughly 3,000 delegates from
about 80 countries are registered
to attend this years event. About
400 chief executive officers and
organizational heads are on the
list, as well as 30 government
ministers, according to the WPCs
website.
Alberta may have sent the pre-
mier or government ministers to
attend the WPC in Moscow, Mr.
Hancock said. Alberta planned to
have a booth at the Canadian pa-
vilion.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
With files from reporter Brent Jang
in Vancouver
FROM PAGE 1
Russia: Suncor withdraws, citing uncertainty
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
The World Petroleum Congress is a chance for major energy players to
connect with one another. MOHAMAD DABBOUSS/REUTERS
Canadian banks and insurers
have been hungry for wealth
management assets Canadian
Imperial Bank of Commerce is in
the running to buy Russell
Investments and insurers such
as Sun Life have devoted more
and more resources to asset
management but the CI posi-
tion cant fall into the hands of a
single buyer.
Under the terms of an agree-
ment between the two parties,
Scotiabank cannot sell more
than 20 per cent of CI to one
purchaser. For that reason, the
position could either be split up
among multiple strategic parties,
or could be sold directly to
investors through a public offer-
ing.
Scotiabank has tapped its own
bankers, as well as advisers from
Goldman Sachs & Co., to deter-
mine the banks best course of
action. Mr. Marwah said a final
decision has not been made.
However, CI chairman Bill Hol-
land said he was under the ini-
tial impression that Scotiabank
is leaning toward selling the
stake directly to investors. When
Scotiabank told him about its
plans last week, on the same day
that CI released its quarterly
earnings, the asset manager was
shocked. At the time, Mr. Hol-
land told the bank that he
couldnt see how it could be
done.
This is a crippling decision
they made, he added in an in-
terview.
If Scotiabank decides to sell its
stake straight to investors, there
is a chance that CIs shares will
start to fall on the assumption
that the offering would be at a
discount to the market price.
And if Scotiabank cant sell its
entire stake in one go, the re-
maining position could lose a lot
of value over time. Canaccord
Genuity analyst Scott Chan said
CIs fundamentals remain strong,
but the uncertainty and selling
will weigh on CIs stock.
The relationship between CI
and Scotiabank has been a com-
plicated one, which ultimately
led to a war of words between
Mr. Holland and former Scotia-
bank CEO Rick Waugh. After Sco-
tiabank withheld its votes for
the two top executives at CI
when they were seeking election
to the CI board in 2011, Mr. Hol-
land called the move truly
idiotic and mean-spirited and
petty.
Mr. Waugh retired last October,
and there were questions as to
how new CEO Brian Porter felt
about the position. Initially bank
executives made it seem as
though they were content with
CI, but new rules from Canadas
banking regulator have affected
their thinking. Because CI is a
minority investment, the bank
must hold an extra amount of
capital against its position in the
firm. That certainly played into
the decision, but wasnt the only
factor, Mr. Marwah said.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bank of Nova Scotia (BNS)
Close: $66.97, down 1
CI Financial (CIX)
Close: $36.13, down 17
FROM PAGE 1
Scotiabank: Bank cannot sell
more than 20% to one buyer
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
B10 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
INTERNATIONAL
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bank of England officials sig-
nalled Wednesday they remain
on track to raise interest rates in
Britain early next year, as their
counterparts at the European
Central Bank in Frankfurt ready
fresh stimulus measures to
revive a flagging recovery in the
18-nation euro zone.
The diverging courses of the
two central banks underscore
how Europes major economies
are moving apart, six years after
a global financial crisis tipped
the world into recession.
It is a privilege to have this
position at this incredibly impor-
tant time for the U.K. and global
economies. This institution is, in
some respects, helping to lead
the global economic healing,
BoE Governor Mark Carney told
reporters.
The U.K. central bank said in
its quarterly Inflation Report that
it expects Britains economy to
expand 3.4 per cent in 2014 and
2.9 per cent in 2015, and that
annual inflation will be close to
its 2-per-cent target over the
next two to three years pro-
vided interest rates in Britain rise
in line with expectations in
financial markets. Traders expect
the central bank to lift its bench-
mark interest rate from a 320-
year low of 0.5 per cent in the
first quarter of next year.
In March, the ECBs economists
said they expect to see economic
growth of just 1.2 per cent across
the currency union this year and
1.5 per cent next. They forecast
an annual rate of inflation of 1
per cent this year and 1.3 per
cent next, well below the central
banks target of just below 2 per
cent. ECB staff will release new
forecasts next month, but it is
unlikely they will raise their
growth or inflation forecasts sig-
nificantly.
The stark difference in the cen-
tral banks forecasts reflect a sur-
prising growth spurt in Britain
over the past year and a sluggish
recovery in the euro zone, where
the scars of a debt crisis are
weighing heavily, particularly in
nations on the regions troubled
periphery.
But it is inflation that really
sets the two central banks apart.
ECB President Mario Draghi this
month signalled that officials
will take steps in June to boost
growth and push inflation up
toward its target. A long period
of low inflation or outright
deflation, when prices fall persis-
tently alarms central bankers
because it can cripple growth
and make it harder for people to
service their debts.
In Britain, where high inflation
was a problem for several years
after the economy entered reces-
sion in 2008, Mr. Carney and his
colleagues on the rate-setting
Monetary Policy Committee are
basking in a spell of comfortably
low inflation despite the pickup
in growth. Annual inflation in
Britain was 1.6 per cent in April,
just shy of the BoEs 2-per-cent
target, and is expected to drift up
toward 2 per cent slowly over the
next few years.
The BoEs May forecasts show
officials believe the British econ-
omy can keep expanding with-
out stoking inflation because
slack in the labour market is
bearing down on wages and
prices.
One big change in the BoEs lat-
est forecasts: The MPC now
expects unemployment in Brit-
ain to fall faster than they did in
February. The jobless rate was 6.8
per cent in March, according to
official data Wednesday, and offi-
cials see it reaching 5.9 per cent
in the second quarter of 2017.
Three months ago they thought
joblessness would be 6.3 per cent
in early 2017.
Normally, such a fall in jobless-
ness would be expected to push
inflation up. But officials set out
several reasons why they dont
think that will happen, including
extra slack in the labour market
from part-time work, self-
employment and a stronger
pound. The long-term unem-
ployed are also re-entering the
work force, which also helps to
keep a lid on wages.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dow Jones Newswires
ECONOMY
Carney forecasts rate rise in near future
Britain continues to be on track for further GDP growth as inflation will be close to 2-per-cent target for the next two to three years
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JASON DOUGLAS
PAUL HANNON
LONDON
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THE BUSINESS PICTURE
Walk this way
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Models display Uniqlo's Fall/Winter collection during its unveiling event in Tokyo on Wednesday. Uniqlo's parent, Fast Retailing Co., has made its name as a maker of high-tech,
functional and affordable clothing, helping founder and CEO Tadashi Yanai become one of Japan's richest men. TORU HANAI/REUTERS
Google Inc. is already getting
requests to remove objectionable
personal information from its
search engine after Europes top
court ruled that subjects have the
right to be forgotten, a source
familiar with the matter said on
Wednesday.
The worlds No. 1 Internet
search company has yet to figure
out how to handle an expected
flood of requests after Tuesdays
ruling, said the source, who is not
authorized to speak on the record
about the issue.
The decision by the Court of
Justice of the European Union,
which affects the regions 500
million citizens, requires that In-
ternet search services remove in-
formation deemed inadequate,
irrelevant or no longer relevant.
Failure to do so can result in fines.
Google will need to build up an
army of removal experts in
each of the 28 European Union
countries, including those where
Google does not have operations,
the source said. Whether those
staffers merely remove controver-
sial links or actually judge the
merits of individual take-down
requests are among the many
questions Google has yet to figure
out, the source said.
Europeans can submit take-
down requests directly to Inter-
net companies rather than to
local authorities or publishers
under the ruling. If a search
engine elects not to remove the
link, a person can seek redress
from the courts.
The criteria for determining
which take-down requests are le-
gitimate is not completely clear
from the decision, said Jeffrey
Rosen, a law professor at The
George Washington University
and head of the National Consti-
tution Center.
The ruling seems to give search
engines more leeway to dismiss
take-down requests for links to
webpages about public figures, in
which the information is deemed
to be of public interest. But
search engines may err on the
side of caution and remove more
links than necessary to avoid lia-
bility, said Mr. Rosen, a long-time
critic of such laws. He was asked
by Google to speak to reporters
on Tuesdays ruling, but has no
formal relationship with the com-
pany.
Search engines will also have to
authenticate requests, he noted,
to ensure that the person seeking
a links removal is actually the
one he or she claims to be.
Google is the dominant search
engine in Europe, commanding
about 93 per cent of the market,
according to StatCounter global
statistics. Microsoft Corp.s Bing
has 2.4 per cent and Yahoo Inc.
has 1.7 per cent.
Google has some experience
dealing with take-down requests
in its YouTube video website,
which has a process to remove
uploads that infringe copyrights.
Google has automated much of
the process with a ContentID sys-
tem that automatically scans up-
loaded videos for particular
content that media companies
have provided to YouTube.
Google may be able to create
similar technology to address the
EU requirements, said BGC Part-
ners analyst Colin Gillis.
Google has said it is disappoint-
ed with the ruling, which it noted
differed dramatically from a non-
binding opinion by the ECJs
court adviser last year. That opin-
ion said deleting information
from search results would inter-
fere with freedom of expression.
Yahoo is carefully reviewing
the decision to assess the impact
for its business and its users, a
spokeswoman said in a state-
ment. Since our founding almost
20 years ago, weve supported an
open and free internet; not one
shaded by censorship.
Microsoft declined to comment.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Reuters
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Google (GOOG)
Close: $526.65 (U.S), down $6.44
TECHNOLOGY
Take-down requests flood
Google after court ruling
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ALEXEI ORESKOVIC
SAN FRANCISCO
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REPORT ON BUSINESS
Mr. Abels success in the util-
ity business has amplified
talk that he could one day take
over the top spot at the parent
company. He declines to discuss
the topic, but Mr. Buffett, 83, has
said Berkshires next leader will
come from within the organiza-
tion, and Mr. Abel is one of a
small group of executives who
are frequently named by Buffett-
watchers as top contenders.
Hes a well-rounded guy and a
good deal-maker, and Buffett
likes that. But hes also a good
operator, and Buffett likes that,
said Jeffrey Matthews, a hedge
fund manager at Ram Partners
LP in Greenwich, Conn., and au-
thor of Warren Buffett's Successor:
Who It Is and Why It Matters. Mr.
Matthews said Mr. Abel is abso-
lutely in the running for the top
post, although he names Ajit
Jain, who runs Berkshires re-
insurance group, as the current
favourite.
Berkshire grew famous as the
vehicle for Mr. Buffetts canny
bets on the stocks of brand-name
consumer companies such as
Geico, Dairy Queen and Coca-
Cola. But as it has grown into a
mammoth holding company
with a market cap of more than
$300-billion (U.S.), it has tilted
toward buying entire businesses
in areas such as railways and
power generation. Mr. Abel, for
instance, recently oversaw the
purchase of Nevadas largest elec-
tric utility for $5.6-billion.
One thing hasnt changed,
though: Berkshire still takes a
long-term view of its invest-
ments. Years ago Mr. Buffett
wrote that our favourite holding
period is forever and that men-
tality still pervades the organiza-
tion.
At the utility arm headed by
Mr. Abel, the emphasis is on find-
ing properties that can deliver
good returns, not just for the
next few quarters but for decades
to come. Formerly known as
MidAmerican Energy, the recent-
ly renamed Berkshire Hathaway
Energy now has about $70-billion
in assets and operates in 11 states,
the U.K. and the Philippines.
We invest in hard assets, so it
can be transmission lines, distrib-
ution lines, generation assets
and were sort of a unique owner,
because we really intend to own
those assets forever, Mr. Abel
said.
He described the purchase of
AltaLink as a beachhead from
which the company can look at
other incremental opportunities
over the long term.
Those who have worked with
Mr. Abel say he also builds rela-
tionships intended to last for dec-
ades. Dawn Farrell, chief
executive officer of TransAlta
Corp., met Mr. Abel at the Calga-
ry Stampede 12 years ago, and
said hes still the same down-to-
earth guy he was then.
Ms. Farrell asked Mr. Abel to
partner with TransAlta in 2012 to
build natural-gas-fired power
plants in Canada. He took a few
days to consider and then said
yes the deal was papered
exactly the way we spoke, Ms.
Farrell said. One fruit of that
agreement, the Sundance 7 pow-
er plant in Alberta, is scheduled
to come online by early 2019,
with the two companies sharing
development costs.
Mr. Abel didnt set out to be the
CEO of an energy company. He
studied accounting at the Univer-
sity of Alberta and became a
chartered accountant with Price-
waterhouseCoopers after his
graduation in 1984. He worked in
the companys San Francisco
office, before joining CalEnergy, a
geothermal electricity producer,
in 1992.
CalEnergy was just starting to
expand into other energy sources
and international markets. Mr
Abel led some of the new busi-
nesses, such as an electricity dis-
tribution network in the U.K. In
1999, CalEnergy acquired MidA-
merican Energy and adopted the
name of its new business unit.
That same year Berkshire
acquired a controlling interest in
the company.
Mr. Abel took over daily opera-
tions at the utility as CEO in
2008. He was vaulted into the
spotlight in 2011 when MidAmer-
icans long-time leader and chair-
man David Sokol resigned from
the company after a controversy
over some ill-timed stock pur-
chases ahead of a Berkshire
acquisition put him in Mr. Buf-
fetts bad books. Mr. Abel added
the chairmans duties to his
plate.
Michael Worms, utilities analyst
at BMO Nesbitt Burns, said Berk-
shire Hathaways long-run view-
point sets it apart from most
publicly traded companies,
which typically want to see any
acquisition pay off quickly in
terms of increased earnings. In
contrast, Berkshire Hathaway op-
erates more like a private com-
pany and is content to wait a few
years for profit to emerge.
Right now, Berkshire Hathaway
Energy is making a long-term bet
on renewable power. The com-
pany accounted for 7 per cent of
wind generation capacity in the
U.S. at the end of last year, and
an even greater share of the
countrys solar market, Mr. Buf-
fett said in his annual letter to
shareholders.
When hes not looking for new
investing opportunities, Mr. Abel
makes time to travel back to Can-
ada quite regularly to visit his
mother, who lives in St. Albert,
just outside Edmonton, as well as
his sister and her family.
Last year he was presented with
a distinguished alumni award by
his alma matter. Hes friendly
and has got a lot of time for stu-
dents, said Joseph Doucet, dean
of the University of Albertas
business school.
Hes still a big hockey fan, Mr.
Doucet said. Someone asked
him about coming back to Cana-
da and he mentioned jokingly
that an NHL coaching job might
be the only job that could get
him back.
Mr. Abel said the country might
see more of him when the time is
right. Were just incredibly
patient, and when our team finds
the right [opportunity] well
want to continue to invest in
Alberta, and Canada, he said.
We take a very patient
approach.
FROM PAGE 1
Abel: Energy boss takes long-term view
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9
Donald J. Smith
Founder, Former President & CEO
EllisDon
Emanuele (Lino) Saputo
Chairman of the Board
Saputo Inc.
Peter M. Brown
Founder & Honorary Chairman
Canaccord Genuity
Congratulations
to the 2014 Class of Companions
Each year, the Canadian Business Hall of Fame celebrates the
lifetime accomplishments of Canadas most distinguished business
leaders. Thank you to our sponsors and guests for attending the
2014 Gala Dinner and Induction Ceremony and celebrating the
achievements of three of these remarkable individuals.
As Companions of the Order of the Business Hall of Fame, they
are mentors and role models for Junior Achievement youth and the
next generation of leaders.
The Canadian Business Hall of Fame and Junior
Achievement of Canada thank you for helping to
inspire the future.
In support of
www.jacanada.org
National Partner: Official Media Partner: Presenting Sponsor:
Companion Sponsors:
Companion Reception Sponsor:
Mentor Sponsors:
THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A B11 REPORT ON BUSINESS
WSJ.COM
2014 DOW JONES & CO., INC.. REPRINTED WITH PERMISSION
General Motors Co.s board has
stepped up its response to the
controversy over the auto mak-
ers handling of vehicle safety
recalls, hiring a law firm to
review how information about
potentially dangerous defects
flowed to its members.
Directors at the largest U.S. auto
maker werent previously
apprised of the troubles with
small cars stalling due to a faulty
ignition-switch, according to a
person close to the board. They
want their review to ensure that
future vehicle safety issues move
more quickly to their attention
through the auto makers man-
agement, that person said.
They also have begun meeting
as a group at least weekly with
chief executive officer Mary Barra
to monitor her overhaul of the
companys operations.
GM had quite a robust system
in place for identifying problems,
dealing with them and moving
them up to appropriate levels,
this person said. This ignition
switch problem did not reach
the board level, this person
added. There will be changes.
There already are significant
changes in the procedures.
A GM spokesman said on
Wednesday the company
wouldnt comment on the
boards activities, and wouldnt
make Ms. Barra available to com-
ment.
Some corporate governance ex-
perts say GMs board hasnt been
as visible as it should be in prov-
iding information about how it is
overseeing the recall response.
Directors need to explain the
boards investigative process and
steps planned to improve its
oversight of risks so that a simi-
lar problem does not recur, says
Beverly Behan, a corporate-gov-
ernance consultant and author.
Ms. Barra has said she intends
to withhold a detailed public re-
sponse to questions about the
recall until an internal investiga-
tion is completed. A report on
the companys probe is expected
to be finished by late May or ear-
ly June, people familiar with the
situation have said.
GMs board faces at least three
lawsuits charging directors failed
in their duties to act on issues
that might affect GMs opera-
tions, profitability or image. The
auto maker is facing more than
60 different potential class action
suits stemming from revelations
that executives took nearly a dec-
ade to recall some 2.6 million ve-
hicles equipped with faulty
ignition switches. The switches,
installed in various compact cars
manufactured in the mid-2000s,
can slip out of the run position
if the keys are jostled, cutting
power to the engine, steering and
airbags.
GM has linked 13 deaths to the
problem, which surfaced in Chev-
rolet Cobalt, Saturn Ion and oth-
er cars that are no longer
manufactured. Plaintiffs lawyers
and safety groups say the num-
ber of deaths and injuries is
much higher.
What directors and senior com-
pany executives knew about the
problem prior to the announce-
ment in February of the first
recall related to the ignition
switch issue is one of many ques-
tions under investigation by two
congressional committees, regu-
lators at the U.S. Department of
Transportation and criminal
prosecutors at the U.S. Depart-
ment of Justice.
The GM boards move in April
to hire its own legal counsel
occurred weeks after Ms. Barra
hired former U.S. attorney Anton
Valukas, chairman of the law
firm Jenner & Block, to investi-
gate the handling of the ignition
switch problem. GM directors
approved the selection of Mr.
Valukas, according to the person
familiar with the board.
Mr. Valukas declined to com-
ment and referred all questions
on the matter to GM.
GM chairman Theodore Tim
Solso said in an e-mail interview
that he and Ms. Barra are in regu-
lar contact.
Mary and I talk on as needed
basis and are available to each
other 24/7, Mr. Solso wrote. We
usually talk 3 to 5 times per week
for various lengths of time. The
most common topic is all the
issues surrounding the recall, but
we also cover many other items.
We both have lists and cover each
others issues.
Mr. Solso, former CEO of engine
maker Cummins Inc., took com-
mand of the GM board in Janu-
ary, the same month that Ms.
Barra advanced to CEO. In a Janu-
ary interview, Mr. Solso pledged
to be an active outside chairman
of the auto maker.
In congressional testimony last
month, she denied knowing
about the switch issue before late
2013. Ms. Barra served as the auto
makers global product chief in
2011 before taking the CEO spot
in January.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
GM (GM)
Close: $34.94 (U.S.), down 21
AUTO INDUSTRY
GM board to review recall procedures
Directors say they were not apprised of the troubles with ignition-switch recall, hire outside law firm to investigate
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JEFF BENNETT
JOANN S. LUBLIN
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Congresswoman Diana DeGette displays GM ignition keys at a hearing in Washington in April. GM chief executive
Mary Barra intends to withold a public response on the recall until an internal probe is done. KEVIN LAMARQUE/REUTERS
This ignition switch
problem did not reach the
board level. There will be
changes. There already are
significant changes in the
procedures.
GM source
SUCCESSFUL
BUSINESSES KNOW
PROSPERITY STARTS
WITH A PRO.
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interests in an increasingly competitive global environment.
Canadas more than 185,000 top accounting
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designation: CPA Chartered Professional Accountant.
CPApro.ca
B12 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
W
hile the Montreal Cana-
diens may be thankful for
every save that Carey Price has
made on the ice this season, its
what the TV cameras show him
doing in the dressing room that
interests one company with ties
to the Olympic gold medal-win-
ning goaltender.
Thats where Mr. Price, among
others, sips on a pink drink be-
tween periods, instantly giving
greater exposure to the Toronto-
based sports nutrition company
BioSteel Sports Supplements Inc.
He is one of two National Hock-
ey League players that BioSteel is
permitted to have endorsing its
products without an NHL Players
Association licence Tyler
Seguin of the Dallas Stars is the
other. Mr. Price is an avid user of
BioSteel products, particularly
the bright pink high-perform-
ance sport drink that spawned
the companys signature #Drink-
ThePink social media campaign.
Though the company does pay
athletes connected with its prod-
uct what president John Celenza
describes as a minuscule
amount, mostly for appearances,
the companys stable of athletes
which currently includes Dallas
Cowboys receiver Dez Bryant, Ca-
nadian Olympic bobsledder
Heather Moyse and 20-year-old
Masters runner-up Jordan Spieth
are largely recompensed in the
form of free product.
The return for BioSteel on this
minimal outlay has been sub-
stantial, particularly in areas it is
trying to grow into, such as the
United States, where the com-
pany says it has seen a big lift
since it got involved with Mr.
Bryant.
You can see [Mr. Bryant] on
ESPNs Sunday NFL Countdown
walking into games with his
BioSteel, hes got his bottle in
hand and in his locker, says Mr.
Celenza, a Toronto native.
We dont pay him to do that,
thats just him authentically lov-
ing the product.
The use of pro athletes to drive
sales because they want to use
the product, rather than drop-
ping thousands of dollars on tra-
ditional advertising campaigns, is
largely what sets BioSteels busi-
ness strategy apart from its big-
ger and more mainstream
competition, including the Pepsi-
Co-owned Gatorade, which cur-
rently owns that NHLPA licence,
and Powerade, owned by Coca-
Cola.
Innovation is the lifeblood of
growth, so if youre innovative,
and youre innovative in a proper
way, it can drive the companys
future for years to come, says
Jim Menzies, CPA, CA and a part-
ner at Grant Thornton LLP in
Toronto. I think this is a very
innovative approach, its innova-
tive because a, its low cost, and
b, no one else is doing it. And
BioSteels approach is especially
suited to the word-of-mouth
aspect of social media, he adds.
But innovation only works if it
actually fuels growth, he cau-
tions.
The products were originally
formulated by former Toronto
Maple Leafs strength coach Matt
Nichol when he couldnt get cer-
tified drug-free products from his
normal supply streams once the
NHL introduced more stringent
drug testing after the 2004-05
NHL lockout.
BioSteel was subsequently
formed in 2009 when Mr. Nichol
was introduced to Mr. Celenza by
current Calgary Flames forward
and childhood friend Mike Cam-
malleri, a client of Mr. Nichols.
Though the product was origina-
lly sold to pro teams and athletes
only, a breakout performance by
Mr. Cammalleri in the 2010 play-
offs alongside numerous sight-
ings of the companys signature
pink drink prompted the pair
to up their game and sell com-
mercially once former Leaf-
turned-fitness-guru Gary Roberts
let the rest of Canada in on the
secret live on Hockey Night in
Canada.
The company now supplies its
products to 28 of 30 NHL teams,
14 National Basketball Associa-
tion teams, 18 Major League
Baseball clubs and about 30 of
the worlds top-50 golfers. It also
retails in sports and health
stores, such as GNC, on both
sides of the border, as well as
retailers Loblaws, Sobeys, Lon-
gos and Rexall, with more than
2,000 stores across Canada carry-
ing the product.
Its that level of authenticity
that really fuels a company like
BioSteels connection with its
customers, marketing experts
say. Consumers see images of
athletes using the product as part
of their day-to-day activities,
compared with other companies
products that are part of an
advertising campaign featuring
athletes.
Sports fans will say, Hes using
that because hes getting paid [to
use it], says Robert Kozinets,
professor of marketing at York
Universitys Schulich School of
Business in Toronto.
But if you see that hes not get-
ting paid and hes using it it
must be good. So its a quality
signal.
Getting endorsers on board
who actually are clamouring to
use the product is another feath-
er in the companys marketing
strategy.
Its what we call in marketing
a pull strategy and not a push
strategy, says Dr. Kozinets. A
push strategy is like Gatorade or
Nike advertising all this stuff; a
pull strategy is you wait for peo-
ple to ask for it, and it tends to be
based more on technical results
or some sort of measurable per-
formance difference, or at least
an ingredient difference in this
case.
However, its not without risk.
When a company aligns itself
with any celebrity, it exposes
itself to a number of variables,
which can have a knock-on effect
that is not always desirable. For
instance, a player in a sports sup-
plement companys stable of
endorsers who tests positive for
using steroids is hardly going to
shine a positive light on that
company.
But companies shouldnt neces-
sarily shy away from using
spokespeople who have a bit of
edge about them, such as the
outspoken Mr. Bryant, whom Mr.
Celenza openly describes as a
lighting rod.
Brands that are truly authentic
shouldnt be afraid of that, Dr.
Kozinets says.
STRATEGY
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ENDORSEMENTS
Drink maker tickled pink with star endorsements
Nutrition drink company BioSteel is using a minimal marketing-budget strategy of low-cost, high-profile athlete endorsements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PAUL ATTFIELD
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Calgary Flames forward Mike Cammalleri caught on camera with his pink drink. BIOSTEEL
REPORT ON BUSINESS
THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A B13
PROVEN
INVESTMENT
EXPERIENCE
toron-ami.com
REPORT ON BUSINESS
REUTERS BREAKINGVIEWS
I
nvestors who think the British
economy is almost ready for
higher rates have not got the
message from Mark Carney. The
Bank of Englands Governor does
not think that a strong housing
market and falling unemploy-
ment make the country slack-
free and primed for higher infla-
tion. Mr. Carney is taking his
chances, but for now he is prob-
ably right to try to delay a rate
rise.
Mr. Carney gave his latest prog-
nosis in Wednesdays press con-
ference for the central banks
much-watched quarterly infla-
tion report.
He batted off suggestions that
monetary policy was the right
tool for dealing with what looks
increasingly like a house price
bubble, especially in London.
That, he said, is for the June
meeting of the Financial Policy
Committee.
Nor was he very impressed by
the rise in jobs and the fall in
the unemployment rate to 6.8
per cent.
Rather, Mr. Carney is interested
in slack, or what professionals
call the output gap. As long as
there is enough of this fuzzy
concept, as Charlie Bean, the
outgoing deputy governor, called
it, workers cannot get inflation-
ary wage increases and produc-
ers struggle to raise prices. The
Monetary Policy Committee
thinks the output gap is 1 to 1.5
per cent of GDP.
For the MPC, the economy is
far from robust. GDP is still
below the pre-crisis peak. Self-
employment, much of it proba-
bly undesired, accounts for more
than half of the new jobs in the
past year.
And the annual growth rate in
regular pay is just 1.3 per cent
below the 1.6-per-cent inflation
rate. Also, the combination of
rising GDP and falling exports
suggests the sort of unbalanced
economy that could tip back
easily, especially if rates are
raised.
Still, the Bank of Englands
approach is risky. Most notably,
the FPC may not be able to curb
house price gains. But for now, it
looks right to be more con-
cerned with the flat economy
than with the London bubbly. If
the central bank isnt completely
wrong about economic slack,
British rates could stay where
they are longer than investors
expect.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ian Campbell
Bank of England looks past the London bubble
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
P
imco had a terrible first quar-
ter the same three months in
which controversy engulfed the
worlds largest bond fund and its
co-founder Bill Gross. There is a
plausible correlation between
22-billion ($32.8-billion) of net
outflows and the recent public
split between Mr. Gross and Pim-
cos now-departed chief executive
Mohamed El-Erian. For Pimcos
parent, German insurer Allianz
SE, the deteriorating financials
argue for a more robust manage-
ment approach.
Founded in 1971 and now with
nearly $2-trillion (U.S.) under
management, Pimco remains a
remarkable success story. Allianz
bought it in 2000 and still has rea-
son to feel pleased with its pur-
chase.
Pimcos current difficulties are
partly to do with changing inves-
tor attitudes to fixed income. A
three-decade long bull market in
bonds is losing steam and that
has led to shifts in investment
allocation. Hence, Pimco suffered
even larger net outflows in the
fourth quarter of 2013.
But that is not the whole story.
Industry figures collated by
research firm EPFR show there
were net inflows into global bond
portfolios in the first three
months of the year. Emerging
market bonds and equities had a
bad quarter, but that only bol-
stered general demand for assets
in Pimcos core area of expertise.
While the first-quarter outflows
were only about 1 per cent of total
assets under management, Pimco
really ought to have enjoyed net
inflows.
In a more challenging environ-
ment, Pimco cannot afford ques-
tions about its governance. Both
Mr. Gross and Mr. El-Erian enjoy
the status of financial superstars.
That is helpful for marketing in
good times. But when things go
awry, problems get amplified
through media attention. There is
a palpable risk that investors, in
increasing numbers, take fright.
Allianz leaves much of the man-
agement responsibility for Pimco
to the funds top brass in Califor-
nia. Mr. Gross is himself support-
ed by an experienced team. Until
now, Pimco has thrived with near
total autonomy from its parent.
But Allianzs hands-off strategy
looks increasingly dubious. It
might be time for Mr. Gross to
take a scaled-back role, and for
Allianz to embrace more active
management.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Robert Cole
Getting a handle on Pimco
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
For more independent financial
commentary and analysis, visit
www.breakingviews.com.
Globe Unlimited subscribers can
read Reuters Breakingviews incisive
analysis of todays business news
online at ROB Insight.
tgam.ca/ROB-Insight.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Globe Investor
N
o more shrill warnings about
the dangers of high house-
hold debt levels. Im moving on.
Dont freak the personal
finance law that debt is bad has
not been repealed. Debt makes
you vulnerable to a drop in in-
come or job loss, and it may pre-
vent you from saving enough for
retirement. Reducing the amount
you owe is a good thing to do, pe-
riod.
But todays high debt loads are
not as dangerous as once
thought. We need a more
nuanced discussion on debt than
just shouting at people about
how bad it is.
Part of the change in thinking
on debt reflects a sense that we
are returning to a more normal
economy after five years of confu-
sion and disruption. Things that
seemed almost apocalyptic a few
years ago now seem liveable, if
not desirable.
The case for not worrying quite
so much about debt was laid out
by the chief economist at CIBC
World Markets earlier this week in
a note issued with the headline:
Debt is Not a Four-Letter Word.
Theres no reason to raise alarm
bells over household debt, Avery
Shenfeld wrote.
The most-often quoted gauge of
Canadas indebtedness is our av-
erage debt-to-income ratio, which
hit 164 per cent as of the end of
last year. Mr. Shenfeld said thats
high compared with U.S. levels
both now and in 2006, before the
housing market crashed. Still, he
thinks debt levels in this country
are not a big worry.
One reason is that debt in Cana-
da is generally held by people
who can afford to pay if off. The
problem in the U.S. was that too
much debt was issued to people
who couldnt afford it, Mr. Shen-
feld said.
The affordability of debt in Can-
ada can be seen in the fact that
delinquency rates on lines of
credit, loans and credit cards have
been low and falling. The number
of mortgages in either default or
arrears (payments missed for
more than three months) has also
been heading lower. We may be
carrying large debts on average in
Canada, but were paying them
off with ease for the most part.
Thats certainly the story told by
the countrys debt-service ratio,
which measures how much of our
disposable income goes toward
interest on mortgages, credit lines
and other debts. Statistics Canada
says the debt-service ratio in the
fourth quarter of last year was 7.1
per cent, the lowest level since
records started being kept in 1990.
Historically low interest rates
are the reason why debts so af-
fordable. Stern warnings about
debt Ive written my share typ-
ically focus on what might hap-
pen when rates return to normal
levels. But now its looking like
this wont happen for quite a long
while.
Bank of Canada Governor Ste-
phen Poloz has talked recently
about how the countrys aging
population could result in slower
economic growth and lower inter-
est rates than we saw precrisis.
Mr. Shenfeld believes that when
the central bank does raise rates,
it will move cautiously. The Bank
of Canada knows that households
have more debt than they did in
previous economic cycles, and
thus it will be more careful on the
upcoming pace of interest rate
hikes.
Dont get complacent about
debt, though. For one thing, it will
be a huge burden if your income
falls as a result of changes in your
work.
Reduced income is the top rea-
son people cite for their financial
problems when they visit Toron-
to-based Consolidated Credit
Counseling Services of Canada,
according to executive director
Jeffrey Schwartz. In many cases,
its people who were employed at
one point, lost their jobs and are
now re-employed but not earning
at the rates that they were
before.
Last weeks unemployment
report highlights the lack of job
security in todays economy. A
total of 28,900 jobs were lost in
April and, longer term, theres
been more growth in part-time
work than full-time positions.
Another risk posed by high debt
loads is that people wont be able
to save enough for retirement.
CIBCs Mr. Shenfeld said hes par-
ticularly concerned about people
in their 20s, 30s and 40s who are
carrying big mortgages and thus
dont have the cash to save as
much as the previous generation.
When they reach 65, they may
not be in as good a position as
their parents were at the same
age.
The less debt you have, the
stronger you are financially. Lets
can the shrill warnings about debt
and leave it at that.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Follow me on Twitter:
@rcarrick
While Canadians are carrying large debts on average, for the most part were paying them off with ease
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No cause for alarm, but no room for complacency: Debt is a big problem for those whose incomes suddenly take a hit. KEVIN VAN PAASSEN FOR THE GLOBE AND MAIL
Reports of our debt are greatly exaggerated
RISING DEBTS, LIGHTER DEBT BURDENS
JOHN SOPINSKI/THE GLOBE AND MAIL 66 SOURCE: STATISTICS CANADA
DEBT-SERVICE RATIO
12% 170%
160
150
140
130
120
110
100
90
80
11
90 92 94 96 98 00 02 04 06 08 10 12 14
10
9
8
7
6
DEBT TO DISPOSABLE INCOME RATIO
This chart shows how the ratio of debt to disposable income has risen sharply in recent years, while the
household debt-service ratio has fallen. The debt-service ratio means the percentage of disposable
income that goes to pay interest on mortgages and other debt.
ROB CARRICK
PERSONAL FINANCE
rcarrick@globeandmail.com
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B14 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
I
like getting paid to wait.
Calgarys Veresen Inc. is seek-
ing to build an $8-billion lique-
fied natural gas (LNG) terminal
on Coos Bay in Oregon. The ven-
ture was approved by the U.S. De-
partment of Energy in March.
The requisite next step, a green
light from the Federal Energy
Regulatory Commission, is
expected in late 2014.
How much of this likely devel-
opment is now priced into Vere-
sen stock? In my opinion, not
much. Yet, while they wait, Vere-
sen investors are earning a
healthy 6-per-cent dividend, sup-
ported by its existing business.
If the project gets approval, it
will add value to Veresens equity.
In fact, I believe the stock will
double over the next few years as
partners are announced, con-
struction begins and shipments
commence. Full operational cap-
ability is scheduled for 2019.
A little background is in order.
Veresen, with a market capital-
ization of $3.5-billion, is the rec-
onstituted Fort Chicago Limited
Partnership. Its holdings consist-
ed of slow-growth, high payout
pipeline-gathering systems. Fort
Chicago morphed into a corpora-
tion in 2011 and changed its
name to Veresen. That year, Vere-
sen purchased a major gas-gath-
ering and processing asset from
Encana for $920-million. Manage-
ment has been focused on add-
ing more predictable streams of
cash flow.
In partnership with Tulsa,
Okla.-based Williams Cos. and
Enbridge Inc., Veresen owns a
42.7 per cent interest in Aux
Sable, a gas-extraction facility.
Veresen also has cogeneration,
hydroelectric and wind power
stations throughout North Amer-
ica. All of these assets support
the current dividend payout of $1
per share, most of it coming from
non-cyclical businesses.
The new Coos Bay develop-
ment is not related to controver-
sial, high-profile projects such as
Keystone XL. It will use existing
domestic U.S. pipeline capacity
and a route expansion of 373
kilometres to be built and jointly
owned by Williams and Veresen.
Williams employs 4,700 people
and owns assets from the Gulf of
Mexico to the Canadian oil sands,
and has been in the pipeline/in-
frastructure business since 1965,
when it purchased what was then
the largest U.S. pipeline, Great
Lakes Pipe Line Co., for $265-mil-
lion. Few companies have more
experience when it comes to
building and obtaining permis-
sion for U.S. domestic energy in-
frastructure.
Why am I so bullish? Two rea-
sons: One, the market has not
fully recognized the probable
earnings impact of the Oregon
project, and two, because I have
seen this movie before.
Heres how it went: Houston-
based Cheniere Energy Inc. is
building new LNG facilities at
Sabine Pass and near Corpus
Christi, Tex., on the Gulf of Mexi-
co. Cheniere is further ahead; it
plans to commence commercial
shipping in 2015 for Sabine, Cor-
pus Christi will begin shipping in
2018. Those projects have been in
development for a decade or so.
Cheniere, of course, is a much
bigger entity. It has a market cap-
italization of $13-billion (U.S.),
has raised $10-billion of project-
construction debt, plus $5-billion
of equity along the way. Impor-
tantly, it also has long-term 20-
year contracts in place for future
customers, but when I was intro-
duced to it 10 years ago, it was
where Veresen is now.
This is where Veresen will end
up. Think about Cheniere as the
trailblazer, making it easier for
those that follow to win project
approval. The next series of regu-
latory approvals will be less con-
tentious than the first.
There are already several other
planned LNG terminals in the
United States, on the Gulf and
East Coast. A competing West
Coast terminal is also being pro-
posed by a subsidiary of Leuca-
dia, in addition to Chevron and
Apache trying to develop an LNG
facility in Kitimat, B.C. So, is
there a genuine need for another
western terminal to export LNG?
Given the rising trend line of
Asian demand, the answer is yes.
In countries such as Japan and
China, natural gas prices are
nearly four times higher than in
North America. Asian countries
see natural gas as a safer source
of energy production; the 2011
Fukushima disaster saw to that
it took 48 Japanese nuclear facil-
ities offline. Think about this as
simple arbitrage shipping low-
er-cost North American natural
gas to Asia and realizing a higher
price.
My bet is on Veresen and Wil-
liams being able to win regulato-
ry approval and create
shareholder value. And in the in-
terim, the dividends keep rolling
in.
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Lowenberg Investment Counsel
owns Veresen Corp. for the benefit of
its clients. The views and opinion
expressed in this article are those of
Mr. Lowenberg.
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Veresen (VSN)
Close: $15.93, up 16 cents
ENERGY
Why Im so bullish on this dividend-paying bet on LNG
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GABRIEL LOWENBERG
Gabriel Lowenberg is CEO and
president of Lowenberg Investment
Counsel Inc., an independent wealth
investment management firm based
in Ottawa.
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D
avid Pyott is not, shall we say,
an unbiased evaluator of
Valeant Pharmaceuticals Inter-
national Inc. As chairman and
CEO of Allergan Inc., he and the
companys board have decided
that they very much do not want
to accept Valeants acquisition
proposal, for a number of rea-
sons.
One of them, Mr. Pyott said in a
letter to Valeant Chairman and
CEO Michael Pearson, is that they
do not believe Valeants business
model is sustainable. This is bold
talk about a company that has de-
livered shareholder returns of
more than 1,000 per cent over the
past five years.
But while Mr. Pyott may be the
most prominent Valeant skeptic,
he is not the first. The companys
philosophy of growth through
relentless acquisition, coupled
with its messy financial reports,
have given conservative investors
heartburn throughout Valeants
period of rapid growth. So far,
they have been wrong or, per-
haps, theyve just been right too
early, which is often the same
thing.
Count me among them. This co-
lumn first expressed doubts
about Laval, Que.-based Valeant
in April, 2012, sharing the con-
cerns of the analysts at Veritas
Investment Research when
Valeant traded around $50. I reit-
erated themin June, 2013, with
the shares at $85. And we will do
it again today, with the shares at
$138.22.
The original Veritas critique was
of a company that had made a
series of choices in its accounting
and its financial presentations
that boosted sales-growth and
earnings numbers. While Veritas
noted that the companys formal
financial statements are compli-
ant with generally accepted U.S.
accounting principles, its news
releases have emphasized a num-
ber of non-GAAP metrics. Unsur-
prisingly, bad stuff, such as
expenses, got excluded, and good
stuff, such as one-time gains, got
included.
Strip away many of Valeants
adjustments, and the sheen on
the growth story faded away.
(Valeant has repeatedly declined
to comment on analyst opin-
ions.)
Veritass criticisms are not as
sharp these days, for a number of
reasons. One is that as Valeant
has continued to grow rapidly,
the accounting choices of 2011
make far less of an impact on the
Valeant of 2014. Another is that
Valeant has dialed back some of
its more aggressive choices in cal-
culating the numbers it empha-
sizes. And yet another is that, to
Valeants credit, its cash flow now
more closely matches its pre-
ferred profit metrics, giving more
legitimacy to Valeants chosen
numbers.
There remains, though, the
matter of Valeants organic
growth, or the year-over-year
sales of its existing pharmaceut-
ical products, independent of all
the deal-making thats driving the
top line. Valeant reported organic
revenue growth of 1 per cent in
2014s first quarter, which was
better than expected. But Veritas
Dimitry Khmelnitsky says a bet-
ter measure of organic growth
should also reflect the prior-year
sales of products that have since
been discontinued. (Look at it
this way: If McDonalds stopped
selling the McRib in September,
we should still include all the
sandwiches sold in last years first
quarter in assessing the change in
restaurant revenues.)
When Mr. Khmelnitsky includes
those sales, he figures Valeants
organic revenue declined at a 2.5-
per-cent rate in the first quarter.
This is remarkably uninspiring for
what is supposed to be the phar-
maceutical industrys big growth
story.
Few investors have listened to
these criticisms, and even fewer
have cared, as evidenced by the
performance of Valeant shares.
The rising stock gives the com-
pany a powerful acquisition cur-
rency, in conjunction with
historically low interest rates on
its junk-rated debt.
It is a currency, however, that
Mr. Pyott and the Allergan board
are unwilling to accept. Mr.
Pyotts letter says the Valeant of-
fers large stock component is
a risk for Allergan stockholders.
Theyve been around long
enough to know that companies
that buy rather than build have to
keep seeking bigger and bigger
prey, until one day the acquisi-
tions are just too big to properly
integrate. The history of investing
is littered with failed merger-driv-
en enterprises.
It is Valeants view that this
time is, well, different. Mr. Pear-
son, in his response Tuesday, said
Allergan offered a business-as-
usual strategy while attempting
to discredit our company. The sil-
ver lining of such an approach is
that Allergan shareholders now
have two very different options to
consider and choose between.
Indeed. If Allergan shareholders
wanted to invest in Valeant, they
could have done so already.
Actually, it can be said that
Valeants shareholders need Al-
lergan much more badly than Al-
lergans need Valeant.
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Special to The Globe and Mail
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Valeant (VRX)
Close: $138.22, down $3.18
Its philosophy of growth through relentless acquisition has fuelled the stocks rise, but Allergans board has reason to be wary
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DAVID MILSTEAD
VOX
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Valeant skeptics including me linger
Valeant has delivered returns of more than 1,000 per cent over the past five years. RYAN REMIORZ/THE CANADIAN PRESS
I
recall the story a few years ago
of Charles Silveira, a man from
New Jersey who was convinced
by a woman a psychic to buy
her a $700,000 (U.S.) home. As
the story goes, he also paid her
$247,850 over time because she
apparently needed to make a gol-
den statue for him to ward off
negativity. According to The Star-
Ledger in New Jersey, Mr. Silveira
filed a lawsuit to recover his
money and evict her from the
home.
If Mr. Silveira were living in
Canada today, he might also be
eligible for cash back from the
government for his home pur-
chase. Not because a psychic con-
vinced him to buy it (sorry,
theres no tax relief for that), but
simply because our government
offers a GST/HST New Housing
Rebate, which can also apply to
certain home renovations. Not
many are aware of this rebate,
and it could mean cash in your
pocket.
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The rebate
The rebate Im talking about will
allow you to recover some of the
goods and services tax (GST) or
the federal part of the harmo-
nized sales tax (HST) paid for a
new or substantially renovated
house that is to be used as your,
or your relations, primary place
of residence.
Generally, the taxman will dis-
tinguish between an owner-
built house and a house pur-
chased from a builder. In either
case, you may be entitled to the
rebate, but the forms you have to
file are different.
Specifically, you might qualify
for an owner-built rebate if
you: (1) built, or hired someone
else to build, a house on land
that you already owned, (2) sub-
stantially renovated, or hired
someone to renovate, your exist-
ing house (at least 90 per cent of
the interior must be removed or
replaced to count as a substantial
renovation), (3) built, or hired
someone to build, a major addi-
tion to your house that at least
doubles the size of the living area
(for example, the addition of a
full second storey to an existing
bungalow), or (4) converted a
non-residential property into
your house.
If you purchased a house from
a builder, you may be entitled to
the rebate if you: (1) purchased a
new or substantially renovated
house from a builder, or (2) pur-
chased a new or substantially
renovated home from the builder
where you leased the land from
the builder (and the lease is for
20 years or more or gives you the
option to buy the land).
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The property
What type of property will qual-
ify for this rebate? A house for
purposes of the rebate generally
includes a detached or semi-
detached single-unit house, a
duplex, condominium unit,
townhouse, a unit in a co-opera-
tive housing corporation, a
mobile home (including a modu-
lar home) and a floating home. A
house can also include a bed and
breakfast or similar place where
rooms are rented on a short-term
basis (although the building
must be used more than 50 per
cent as your primary place of res-
idence if you hope to claim a
rebate for the whole building).
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The amount
How much can you expect back
from the government? If you
qualify, you can expect a federal
rebate of as much as $6,300. The
actual federal rebate is clawed
back somewhat if the value of
your property is more than
$350,000, and disappears entirely
if your property is worth
$450,000 or more after the build-
ing or renovation. If you cant
claim the full federal rebate, you
may also be eligible for a provin-
cial rebate. British Columbia (for
HST paid before April 1, 2013) and
Ontario offer rebates that can be
as high as $26,250 and $24,000,
respectively. Nova Scotia also of-
fers a rebate. Other provinces
may soon offer rebates as well.
The nuances
Be sure to get a copy of the book-
let RC4028, GST/HST New Hous-
ing Rebate, available on the
taxmans website at cra.gc.ca and
which includes provincial forms
and instruction. Theres lots of
information there.
Youll need to file the applica-
ble forms to claim the rebate:
Form GST191-WS, Construction
Summary Worksheet, and Form
GST191, GST/HST New Housing
Rebate Application for Owner-
Built Houses or Form GST190,
GST/HST New Housing Rebate
Application for Houses Pur-
chased from a Builder.
All owners of a property must
be individuals to qualify for the
rebate (no owner can be a part-
nership or corporation). As for
deadlines, you can file for the
rebate generally within two years
following the substantial comp-
letion of the building or renova-
tion of your house. Finally, if you
bought or built a home or other
building to rent out to individu-
als as a place of residence, you
may be entitled to a rebate as
well (see Guide RC4231 on CRAs
website).
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TIM CESTNICK
TAX MATTERS
Tim Cestnick is president of
WaterStreet Family Offices, and
author of several tax and personal
finance books.
tcestnick@waterstreet.ca
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Buying or renovating a home? Look for cash back from the taxman
GLOBE INVESTOR
Close: $138.22, up $3.18
VALEANT PHARMA.
J J A S O N D J F M A
120
70
$ 170
2013 2014
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THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A B15
Yamana Gold Inc. 8.22 .40 5.1 4466 -10.3
Osisko Mining 8.20 .18 2.2 3616 74.1
TORC Oil & Gas Ltd. 13.61 .58 4.5 3385 28.9
EnCana Corp. 24.84 -.25 -1.0 3245 29.5
Manulife Financial 20.34 -.18 -.9 2580 -3.0
Surge Energy Inc. 6.82 -.30 -4.2 2498 1.0
HBP NYMEX NatGas Bear 5.85 -.04 -.7 2086 -43.5
First Quantum Mineral 22.70 .67 3.0 1918 18.6
Goldcorp Inc. 27.52 .37 1.4 1729 19.4
Eldorado Gold 6.58 .19 3.0 1676 9.1
POET Technologies 1.48 .12 8.8 1832 184.6
Tweed Marijuana Inc. 2.91 .22 8.2 1521 11,540
Bear Creek Mining 2.00 .52 35.1 1231 37.0
Yangarra Resources Lt 1.14 -.09 -7.3 1014 96.6
Spartan Energy 3.85 -.06 -1.5 701 21.8
Pine Cliff Energy 1.47 -.01 -.7 585 41.4
Fission Uranium 1.21 -.01 -.8 559 13.1
Americas Petrogas 1.25 -.01 -.8 547 -27.3
ThermoCeramix Corp. 1.02 -.01 -1.0 380 104.0
Marquee Energy 1.08 -.03 -2.7 379 35.0
Spdr S&P 500 E.T.F. 189.06 -.90 -.5 72233 2.4
Ishares Rusl 2000 E.T 109.62 -1.81 -1.6 65538 -5.0
Ishares Msci Emerg Mk 42.78 .30 .7 57545 2.4
Bank of America 14.84 -.19 -1.3 52230 -4.7
J.C. Penney 8.61 -.48 -5.3 29648 -5.9
Pfizer 29.10 -.10 -.3 26781 -5.0
Gramercy Property Tru 5.33 .12 2.3 25967 -7.3
Spdr Financial E.T.F. 21.97 -.16 -.7 25534 .5
At&T Inc. 36.39 .19 .5 24179 3.5
Ishares China Large-C 35.82 .40 1.1 21792 -6.7
Cisco Systems 22.81 -.05 -.2 58730 1.7
Facebook, Inc. 59.23 -.60 -1.0 47385 8.4
Micron Technology 26.86 -.77 -2.8 28123 23.5
Powersh QQQ E.T.F. 87.83 -.46 -.5 26407 -.2
Groupon, Inc. 6.05 -.28 -4.4 19419 -48.6
Microsoft 40.24 -.18 -.5 18804 7.6
Intel 26.33 -.12 -.5 17795 1.4
Yahoo! 34.17 -.23 -.7 17038 -15.5
Mannkind 7.01 .43 6.5 16655 34.8
Comcast Corp. 49.83 -.28 -.6 15818 -4.1
Sunopta Inc 13.78 1.49 12.1 61 29.8
Boyd Group Income Fun 41.00 2.80 7.3 170 23.7
McCoy 6.65 .41 6.6 118 -2.6
CNOOC Limited 186.25 9.19 5.2 1 -5.9
Element Financial 14.00 .69 5.2 1338 .0
Yamana Gold Inc. 8.22 .40 5.1 4466 -10.3
WaterFurnace Renewabl 22.31 1.06 5.0 0 -.2
MAG Silver Corp. 8.02 .38 5.0 255 45.8
DirectCash Payments 15.88 .72 4.8 286 -12.8
TORC Oil & Gas Ltd. 13.61 .58 4.5 3385 28.9
Bear Creek Mining 2.00 .52 35.1 1231 37.0
EXO U Inc. 1.33 .16 13.7 77 66.3
Covalon Technologies 1.55 .15 10.7 8 40.9
POET Technologies 1.48 .12 8.8 1832 184.6
Fortress Minerals Cor 3.75 .30 8.7 3 -.8
Tweed Marijuana Inc. 2.91 .22 8.2 1521 11,540
Mirasol Resources 1.18 .08 7.3 17 34.1
Probe Mines Ltd 2.49 .15 6.4 53 11.2
Gold Reserve 3.80 .20 5.6 17 7.0
Tasman Metals 1.42 .07 5.2 7 31.5
Coupons.Com Inc. 20.00 2.42 13.8 756 n-a
Intrexon Corp. 17.49 1.99 12.8 1929 -26.5
The Rubicon Project 12.68 1.31 11.5 1142 n-a
Everyday Health 15.35 1.43 10.3 237 n-a
Cheetah Mobile Inc. 13.71 1.20 9.6 502 n-a
Kate Spade & Company 37.60 2.95 8.5 5403 17.2
Eros International PL 16.19 1.21 8.1 45 45.7
Sprague Resources LP 23.43 1.74 8.0 144 28.5
Iron Mountain 29.72 1.99 7.2 6912 -2.1
Imperva Inc. 20.75 1.37 7.1 1114 -56.9
Pernix Therapeuticsho 5.59 1.31 30.6 6685 121.8
Bluebird bio 24.73 5.31 27.3 1141 17.9
Celldex Therapeutics 15.74 3.34 26.9 9265 -35.0
Lo-Jack Corp. 5.24 .82 18.6 371 45.2
Criteo S.A. 33.50 3.98 13.5 1813 -2.1
Sunopta Inc 12.65 1.40 12.4 2962 26.4
Pointer Telocation Lt 8.79 .95 12.1 258 -25.8
Tandem Diabetes Care 17.71 1.89 12.0 250 -31.3
Inogen, Inc. 16.29 1.67 11.4 162 n-a
Ezchip 26.45 2.56 10.7 966 7.5
Hydrogenics Corp. 16.20 -5.19 -24.3 55 -20.7
Mitel Networks 12.03 -.71 -5.6 371 12.6
Longview Oil 6.59 -.32 -4.6 161 37.0
Total Energy Services 21.58 -1.01 -4.5 33 4.7
Points International 23.15 -1.03 -4.3 1 -14.2
Surge Energy Inc. 6.82 -.30 -4.2 2498 1.0
Lumenpulse Inc. 18.20 -.80 -4.2 2 n-a
North American Energy 8.05 -.34 -4.1 35 29.8
Cardiome Pharma 8.78 -.37 -4.0 7 31.0
Big Rock Brewery 17.28 -.72 -4.0 13 -1.2
Maplewood Internation 1.78 -1.82 -50.6 7 -50.6
MRRM Inc. 3.10 -.30 -8.8 5 -26.0
BLF REIT 5.50 -.50 -8.3 4 -18.5
Petroshale Inc. 1.25 -.11 -8.1 19 -10.7
Carlaw Capital IV 1.75 -.15 -7.9 3 -12.5
Yangarra Resources Lt 1.14 -.09 -7.3 1014 96.6
Abitibi Royalties 1.65 -.10 -5.7 0 371.4
Aurora Spine 3.16 -.16 -4.8 29 -14.6
VersaPay Corporation 1.19 -.06 -4.8 4 -8.5
Medicure Inc 2.04 -.10 -4.7 15 750.0
Jgwpt Holdings 10.51 -2.80 -21.0 3998 -39.6
Daqo New Energy 29.09 -4.32 -12.9 160 -19.9
ECA Marcellus Trust 7.75 -.89 -10.3 2021 1.0
Vaalco Energy 7.06 -.71 -9.1 1412 2.5
TRC Companies 5.34 -.52 -8.9 33 -25.2
NQ Mobile 10.23 -.94 -8.4 4851 -30.4
International Shiphol 23.02 -2.08 -8.3 33 -22.0
Higher One Holdings 5.07 -.44 -8.0 582 -48.1
URS Corp. 43.49 -3.70 -7.8 4604 -17.9
Accuride 5.27 -.44 -7.7 424 41.3
Enzymotec Ltd. 13.75 -6.48 -32.0 2521 -49.1
Hydrogenics Corp. 14.91 -4.68 -23.9 1938 -22.1
Trovagene, Inc. 12.50 -2.48 -16.6 0 -22.1
Insys Therapeutics 23.01 -4.29 -15.7 3239 -10.8
Sorrento Therapeutics 6.70 -.93 -12.2 195 -17.3
Electro Scientific In 7.14 -.93 -11.5 214 -31.7
Fossil Group 100.00 -11.45 -10.3 4838 -16.6
Imprimis Pharmaceutic 5.58 -.62 -10.0 46 66.1
Tetralogic Pharmaceut 5.55 -.58 -9.5 116 -41.7
Banc of California 10.72 -1.06 -9.0 753 -20.1
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CLOSE
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TSX
Biggest volume for stocks $5 or more
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TSX VENTURE
Biggest volume for stocks $1 or more
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NYSE
Biggest volume for stocks $5 or more
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NASDAQ
Biggest volume for stocks $5 or more
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TSX
Biggest % gainers for stocks $5 or more
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TSX VENTURE
Biggest % gainers for stocks $1 or more
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CLOSE
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NYSE
Biggest % gainers for stocks $5 or more
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CLOSE
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NASDAQ
Biggest % gainers for stocks $5 or more
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TSX
Biggest % losers for stocks $5 or more
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TSX VENTURE
Biggest % losers for stocks $1 or more
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NYSE
Biggest % losers for stocks $5 or more
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NASDAQ
Biggest % losers for stocks $5 or more
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LOSERS
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GAINERS
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VOLUME
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WEDNESDAYS MARKETS
WHAT HAPPENED
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TSX
INDEXES AND SUB INDEXES
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CLOSE CHG %CHG YTD%
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S&P/Tsx Composite 14,673.73 -6.08 -.04 7.72
S&P/Tsx 60 839.11 -.38 -.05 7.06
S&P/Tsx Completion 1,009.31 -.32 -.03 9.62
S&P/Tsx Smallcap 672.49 -.50 -.07 10.12
S&P/Tsx Venture 991.74 3.39 .34 6.41
First Quantum Mineral 22.70 3.04 13.28 3.3
Potash Corp. of Sask. 40.43 1.08 34.61 3.0
Yamana Gold Inc. 8.22 5.12 6.19 2.5
Goldcorp Inc. 27.52 1.36 22.35 2.5
Cdn Natural Resource 44.36 .54 48.23 2.2
Valeant Pharmaceutical 138.22 -2.25 46.03 -8.1
Manulife Financial 20.34 -.88 37.59 -2.7
Canadian National Rail 64.49 -.57 53.57 -2.5
CGI Group 36.83 -2.93 11.39 -2.5
Magna International 108.15 -1.04 23.92 -2.1
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CLOSE CHG
%
MKT CAP
($B)
*INFL.
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INDEX LIFTERS / DRAGS
STOCKS THAT MOVED THE INDEX THE MOST ON THE DAY
Frankfurt Xetra DAX 9754.39 -0.04 0.00 +2.12
Hong Kong Hang Seng 22582.77 230.39 1.03 -3.10
London FTSE 100 6878.49 5.41 0.08 +1.92
Madrid IBEX 35 10613.90 26.70 0.25 +7.03
Mexico C IPC 42144.51 -92.32 -0.22 -1.36
Nasdaq 4100.63 -29.54 -0.72 -1.82
Paris CAC40 4501.04 -3.98 -0.09 +4.77
Russell 2000 1103.14 -18.02 -1.61 -5.20
Russia RTS 1261.01 6.72 0.54 -12.60
Sao Paulo BOVESPA 54412.54 505.08 0.94 +5.64
Seoul Kospi 2010.83 27.90 1.41 -0.03
Shanghai Composite 2047.91 -2.82 -0.14 -3.22
Sydney All Ord 5475.90 0.50 0.01 +2.29
Tokyo Nikkei 225 14405.76 -19.68 -0.14 -11.57
Zurich Swiss Mkt 8611.70 68.12 0.80 +4.98
CLOSE CHG %CHG YTD%
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INTERNATIONAL INDEXES
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Bay Street falls Canadian stocks fell as a gain for gold miners on higher prices was
offset by weakness in energy, while health care shares fell with Valeant Pharmaceut-
icals, dropping 2.3 per cent, after it said it would sweeten its takeover offer for Aller-
gan Inc. Encana Corp. dropped 1 per cent, and Talisman Energy fell 0.3 per cent.
Wall Street declines U.S. stocks fell as small caps resumed their selloff and consumer
discretionary shares lagged. Macys shares dipped 0.2 per cent after the department
store operator reported sales that missed expectations. Retailer Fossil Group Inc. was
the biggest percentage decliner on the S&P 500. Shares sank 10.3 per cent.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TSX HIGHS
A&W Revenue Royalties 22.90 .10 .44
Anderson Energy .25 -.03 -9.09
Arsenal Energy 7.77 .11 1.44
BCE Inc. 49.65 .03 .06
BMO Canadian Dividend 18.24 .04 .22
BMO Covered Call Util 15.48 .05 .32
BMO Discount Bond Ind 15.17 .01 .07
BMO Equal Weight Util 16.00 .08 .50
BMO Monthly Income E. 16.55 .00 .00
BMO MSCI Emerging Mar 16.19 .01 .06
BMO MSCI Europe High 15.93 .02 .13
Boyd Group Income Fun 41.00 2.80 7.33
Brookfield Asset Mgmt 47.45 .35 .74
Caza Oil & Gas .28 .04 17.02
Cdn. Energy Services 33.75 .75 2.27
Concordia Healthcare 29.90 -.48 -1.58
Copper Mountain Mining 2.50 .08 3.31
Delrand Resources .16 -.01 -5.88
Dynasty Metals & Mini 1.57 .15 10.56
Energy Leaders IF 12.26 .04 .33
F.A. Cda Low Risk Wei 10.68 .08 .75
Faircourt Split Trust 6.82 .03 .44
Fairfax Financial Hol 507.78 6.23 1.24
First Asset M.S. Cda 11.56 .08 .70
First Asset M.S. Cda 11.51 .11 .96
First Asset Pipes & P 9.43 .05 .53
First Quantum Mineral 22.70 .67 3.04
FT AlphaDEX Cdn. Divi 21.40 .05 .23
FT AlphaDEX European 20.92 .39 1.90
Gibson Energy 30.94 -.07 -.23
Hardwoods Distribution 11.70 .15 1.30
HBP S&P/TSX GlblBasMe 9.28 .04 .43
High Arctic Energy Se 5.60 .18 3.32
Horizon Active EmrgMk 11.90 .03 .25
Horizons Act. Global 15.47 .05 .32
Horizons Cdn Select U 40.16 .17 .43
Horizons S&P/TSX Fina 28.87 .02 .07
HudBay Minerals 9.91 .13 1.33
INDEXPLUS Income Fund 14.04 -.03 -.21
iSh MSCI Europe IMI C 20.36 .02 .10
iShares Bal. Income C 21.25 .06 .28
iShares Canadian Valu 24.21 .02 .08
iShares Cdn Select Di 25.33 .07 .28
iShares Emrg. Mkts Fu 30.78 .28 .92
iShares MSCI Em. Mark 21.66 .01 .05
iShares MSCI Emerging 26.26 .06 .23
iShares S&P/TSX Cdn D 26.12 .00 .00
iShares S&P/TSX Cdn D 26.03 .17 .66
iShares S&P/TSX Equit 23.09 .04 .17
iShares S&P/TSX Gb Ba 14.50 .10 .69
iSharesMSCI All Ctry 25.75 -.09 -.35
Keyera Corp. 74.71 -1.56 -2.05
Linamar Corp. 63.50 .58 .92
Lundin Mining 5.80 .01 .17
Magellan Aerospace 9.60 .23 2.45
Mandalay Resources Co 1.02 -.03 -2.86
Molson Coors Canada 69.26 -.34 -.49
Morguard Corp. 138.81 -1.19 -.85
Morneau Shepell Inc. 16.77 .23 1.39
Osisko Mining 8.20 .18 2.24
Pacific Insight Elect 4.15 .17 4.27
PowerShares Cdn Div E 25.28 .01 .04
Purpose Best Ideas Fu 20.47 -.06 -.29
Purpose Core Dividend 23.91 .00 .00
Purpose Monthly IF 21.40 .04 .19
Saputo Inc. 59.65 .05 .08
Shaw Communications 27.14 .05 .18
Skylon Growth & Incom 8.79 .00 .00
Star Portfolio Corp. 11.99 .19 1.61
Sunopta Inc 13.78 1.49 12.12
Superior Plus 13.78 -.06 -.43
Vanguard FTSE Cdn Hig 31.87 .06 .19
Vanguard FTSE Emergin 27.76 .04 .14
Whistler Blackcomb Ho 17.16 .59 3.56
TSX LOWS
Centric Health .25 -.01 -1.96
Coalspur Mines Ltd. .12 -.02 -14.29
Duluth Metals .52 -.05 -8.77
Equity Financial Hold 9.00 .00 .00
FP Newspapers Inc. 4.30 -.30 -6.52
HBP S&P/TSX GlblBasMe 3.96 .01 .25
HBP S&P500 VIX ST Fut 5.00 -.05 -.99
IMRIS Inc. 1.22 -.12 -8.96
Labrador Iron Mines .09 -.01 -5.56
Petaquilla Minerals .16 -.02 -11.11
ROI Canadian Real Est 7.04 -.16 -2.22
ROI Cdn High Income M 7.07 -.09 -1.26
ROI Cdn Mortgage Inco 7.20 -.20 -2.70
Trez Capital Mortgage 8.32 .02 .24
U.S. Housing Recovery 8.85 -.17 -1.88
CLOSE CHG %CHG
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CLOSE CHG %CHG
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CLOSE CHG %CHG
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CLOSE CHG %CHG
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CLOSE CHG %CHG
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
HIGHS AND LOWS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
* Influence: How many points the stock moved the index
TSX 820 5.00 140,451 810 1.44 173,153 665 -4.30 15,875 2,295 92 78.92 18 -62.36 329,479 -17.63
Venture 323 -27.35 51,435 368 -26.74 48,580 1,809 19.22 45,918 2,500 8 -61.86 16 -55.75 145,933 -25.45
New York 1,757 -11.88 1,215,690 2,621 39.34 2,288,780 361 -8.32 44,702 4,739 172 .43 47 -49.52 3,549,171 -28.70
Nasdaq 678 -49.17 409,469 1,939 40.52 1,332,023 219 -30.68 9,628 2,836 28 -66.96 73 -1.35 1,751,120 -14.40
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
MARKET BREADTH
% change indicates increase / decrease from 13-week average
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ADVANCE %CHG VOL (000S) DECLINE %CHG VOL(000S) UNCH. %CHG VOL(000S) TOTAL NEW HIGH %CHG NEW LOW %CHG VOL(000S) %CHG
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Stocks listed in this table touched a 52week
high or low in previous day's trading. Due to
space constraints, companies with lower share
prices might not appear on the published list.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cons Discretion 145.33 -.37 -.25 7.30
Cons Staples 327.92 -.68 -.21 9.10
Energy 313.58 -.49 -.16 14.99
Financials 239.59 -.14 -.06 2.75
Health Care 89.13 -.81 -.90 1.43
Industrials 173.15 .09 .05 5.09
Info Tech 36.66 -.64 -1.72 4.30
Materials 249.11 2.24 .91 10.42
Metals & Mining 878.33 5.99 .69 10.87
Real Estate 255.30 .62 .24 8.75
S&P/Tsx Global Gold 182.09 1.81 1.00 16.39
S&P/Tsx Global Mining 79.14 .50 .64 8.86
S&P/Tsx Income Trust 184.73 .13 .07 6.08
S&P/Tsx Preferred Sha 821.13 -.43 -.05 3.21
Telecom Serv 123.57 .11 .09 4.32
Utilities 222.02 1.04 .47 8.85
J J A S O N D J F M A
13400
11700
15100
2013 2014
J J A S O N D J F M A
1750
1550
1950
2013 2014
10 11 12 1 2 3
14685
14660
14710
A.M. P.M.
J J A S O N D J F M A
15700
14500
16900
2013 2014
14,673.73 9 -6.08 9 -0.04% 9 121,698,601 VOL 9 +7.72% YTD
S&P/TSX COMPOSITE INDEX
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S&P 500
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DOW JONES INDUSTRIAL AVERAGE
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1,888.53 9 -8.92 9 -0.47% 9 +2.17%YTD 16,613.97 9 -101.47 9 -0.61% 9 71,969,085 VOL 9 +0.23%YTD
GLOBE INVESTOR
DAILY INDEX: LAST 12 MONTHS DAILY INDEX: 5MINUTE INTERVAL
DAILY INDEX: LAST 12 MONTHS DAILY INDEX: LAST 12 MONTHS
TSX VENTURE HIGHS
Iplayco .82 -.02 -2.38
TSX VENTURE LOWS
Maplewood Internation 1.78 -1.82 -50.56
Till Capital Ltd. 7.25 -.15 -2.03
B16 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
STOCK ANALYSIS
What were looking for
Potential bargains in the U.S.
market.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The screen
The CPMS U.S. Earnings Value
model portfolio currently leads
our selection of U.S. strategies
with a total return of 11.9 per cent
so far in 2014, compared with 3.4
per cent for the S&P 500.
The strategy is designed for
investors focused on valuation.
The emphasis is on stocks trad-
ing at low price-to-earnings mul-
tiples, but the model also looks
for growing earnings and rising
expectations.
The strategy looks for stocks
with the best combination of the
following criteria:
9 Price to earnings;
9 Quarterly earnings momen-
tum (QEM), that is, the per-
centage change in the latest
four quarters earnings per
share (EPS) compared with the
four quarters EPS of one quar-
ter ago;
9 Estimated quarterly earnings
momentum for the upcoming
quarter;
9 The number of upward revi-
sions of the current years con-
sensus earnings estimate over
the past three months.
Firms with higher earnings sur-
prises over the past four quarters
are also favoured.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
More about Morningstar
Morningstar Inc. provides inde-
pendent investment research in
North America, Europe, Australia
and Asia. Its research tool, Mor-
ningstar CPMS, provides quanti-
tative North American equity
research and portfolio analysis to
institutional clients and financial
advisers.
CPMS data cover more than 95
per cent of the investable North
American stock market. With
more than 110 equity and credit
analysts, Morningstar has one of
the largest independent institu-
tional equity research teams in
the world.
What did we find?
The 20 top-ranking stocks cur-
rently held by the model are
shown in the table.
Over the 12-month period end-
ed April 30, 2014, the U.S. Earn-
ings Value model posted a total
return of 49.6 per cent versus
20.4 per cent for the S&P 500.
Since inception in 1994, the stra-
tegy has generated an annualized
total return of 15.3 per cent while
the index came in at 9.2 per cent.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RANK COMPANY SYMBOL
MARKET CAP
(US$-MIL) P/E
QUARTERLY
EARNINGS
MOMENTUM %
EST. QEM
NEXT QUARTER
90-DAY EPS
ESTIMATE
REVISION %
CPMS
EARNINGS
SURPRISE %
. . . . . . . . .
1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Montpelier Re Holdings
. . . . . . . . . . . . . . . .
MRH-N
. . . . . . . . . . . . . . . . . . . . .
1,501
. . . . . . . . . . . . . . . .
5.66
. . . . . . . . . . . . . . . . . . . . . . . . .
16.03%
. . . . . . . . . . . . . . . . . . . . . . . . . .
5.68%
. . . . . . . . . . . . . . . . . . . .
-2.25%
. . . . . . . . . . . . . . . . . . . .
8.37%
2 New Jersey Resources NJR-N 2,106 10.46 45.71% 70.16% 1.47% 21.64%
3 Trinity Industries Inc. TRN-N 6,286 13.89 22.92% 29.87% 7.37% 5.91%
4 PartnerRe Ltd. PRE-N 5,520 8.18 12.24% -0.31% 12.32% 7.40%
5 AmTrust Financial Svc. AFSI-Q 3,285 11.37 12.75% 14.87% 5.79% 8.88%
6 Questcor Pharmaceutical QCOR-Q 5,274 15.39 7.15% 10.98% 12.02% -2.25%
7 The Blackstone Grp L.P. BX-N 17,023 9.37 0.17% 2.05% 1.26% 3.06%
8 PDL BioPharma PDLI-Q 1,381 4.84 -5.50% 4.99% -4.37% -3.29%
9 Delta Air Lines Inc. DAL-N 32,939 11.51 9.62% 7.31% 0.59% 1.19%
10 Prudential Financial Inc. PRU-N 39,021 8.58 2.01% 1.34% 0.05% 1.44%
11 Prospect Capital Corp. PSEC-Q 3,045 7.27 1.17% 4.65% -4.45% 1.12%
12 Goodyear Tire & Rubber GT-Q 6,135 8.83 8.70% 5.85% 1.51% 0.35%
13 Take-Two Interactive TTWO-Q 2,022 6.65 0.00% -9.54% 7.40% 0.76%
14 Deluxe Corp. DLX-N 2,820 14.18 0.75% 1.91% -0.76% 0.61%
15 Capital One Financial COF-N 44,303 10.31 6.62% -0.39% -4.27% 3.96%
16 Old Republic Int'l ORI-N 4,441 13.15 10.53% 4.01% -10.02% 1.57%
17 Discover Financial Svc. DFS-N 27,086 11.64 1.36% -0.40% 1.92% 1.23%
18 Micron Technology Inc. MU-Q 29,575 19.09 16.50% 166.48% 42.56% 4.91%
19 Assurant Inc. AIZ-N 4,904 10.65 2.93% 2.73% 0.78% 4.45%
20 Navient Corp. NAVI-Q 6,795 6.38 -13.32% -2.98% -10.64% -0.29%
Source: Morningstar Canada
Bargain-hunting south of the border
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
+Agnico Eagle Mines 36.13 .34 .95
+Agrium 102.48 .53 .52
+Alimentation Couche-T 29.82 -.16 -.53
AltaGas Ltd. 48.91 -.25 -.51
ARC Resources Ltd. 31.34 -.13 -.41
+ATCO Ltd. 53.41 -.30 -.56
+Bank of Montreal 75.58 -.06 -.08
+Bank of Nova Scotia 66.97 -.01 -.01
+Barrick Gold Corp. 18.94 .11 .58
Baytex Energy Corp. 45.30 -.10 -.22
+BCE Inc. 49.65 .03 .06
Bell Aliant 28.26 .07 .25
+BlackBerry Limited 8.00 -.12 -1.48
+Bombardier Inc. 4.20 .04 .96
+Brookfield Asset Mgmt 47.45 .35 .74
+Brookfield Renewable 32.05 .08 .25
+CAE Inc. 14.51 -.10 -.68
+Cameco Corp. 21.97 -.06 -.27
+Canadian National Rail 64.49 -.37 -.57
+Cdn Natural Resource 44.36 .24 .54
Canadian Oil Sands 23.42 .13 .56
Canadian Pacific Rail 175.15 .21 .12
+Canadian Tire Corporat 107.94 -1.46 -1.33
+Canadian Utilities 40.11 .35 .88
+Catamaran Corp. 46.35 -.49 -1.05
+Cenovus Energy 31.50 -.19 -.60
+CGI Group 36.83 -1.11 -2.93
+CI Financial 36.13 -.17 -.47
+CIBC 97.19 .00 .00
+Constellation Software 245.84 -1.20 -.49
+Crescent Point Energy 43.93 .12 .27
+Dollarama Inc. 91.54 -.46 -.50
+Eldorado Gold 6.58 .19 2.97
+Emera Inc. 34.26 .23 .68
+Empire Company 67.76 .11 .16
Enbridge Inc. 51.90 -.07 -.13
+EnCana Corp. 24.84 -.25 -1.00
+Enerplus Corp. 23.65 .16 .68
+Fairfax Financial Hol 507.78 6.23 1.24
+Finning International 30.61 .40 1.32
+First Capital Realty 18.60 -.12 -.64
First Quantum Mineral 22.70 .67 3.04
+Fortis Inc. 32.35 -.16 -.49
+Franco-Nevada Corp. 53.50 1.00 1.90
+George Weston 82.72 -.20 -.24
Gibson Energy 30.94 -.07 -.23
+Gildan Activewear 59.07 -.35 -.59
+Goldcorp Inc. 27.52 .37 1.36
+Great-West Lifeco 30.61 .21 .69
H&R Real Estate Invest 23.16 .08 .35
+Husky Energy 36.62 .23 .63
+IGM Financial 53.42 .20 .38
+Imperial Oil 53.48 .18 .34
+Industrial Alliance 44.31 -.36 -.81
+Intact Financial 71.07 .07 .10
+Inter Pipeline 30.26 -.28 -.92
+Jean Coutu Group (PJC 23.36 .01 .04
Keyera Corp. 74.71 -1.56 -2.05
+Kinross Gold 4.39 -.03 -.68
+Linamar Corp. 63.50 .58 .92
+Loblaw Companies 47.46 -.14 -.29
+Magna International 108.15 -1.14 -1.04
+Manulife Financial 20.34 -.18 -.88
+MEG Energy Corp. 37.18 -.20 -.54
+Methanex Corp. 66.52 -.50 -.75
+Metro Inc. 68.71 .24 .35
+National Bank of Cda 45.79 .00 .00
+Onex Corporation 63.00 .05 .08
+Open Text 51.07 -.93 -1.79
+Pacific Rubiales Ener 18.11 .27 1.51
+Paramount Resources 56.24 -1.15 -2.00
Pembina Pipeline Corp 45.48 .00 .00
Penn West Petroleum 10.09 .13 1.31
Peyto Exploration 39.41 .58 1.49
+Potash Corp. of Sask. 40.43 .43 1.08
+Power Corp of Canada 30.91 .18 .59
+Power Financial Corp. 34.95 .22 .63
Precision Drilling 13.53 -.14 -1.02
RioCan Real Estate In 27.54 -.04 -.15
+Rogers Commun 44.91 -.13 -.29
+Royal Bank of Canada 73.52 -.06 -.08
+Saputo Inc. 59.65 .05 .08
Shaw Communications 27.14 .05 .18
+Silver Wheaton 24.08 .09 .38
+SNC-Lavalin Group 52.00 .82 1.60
+Sun Life Financial In 37.57 -.29 -.77
+Suncor Energy 43.05 -.10 -.23
+Talisman Energy 11.60 -.03 -.26
+TD Bank 52.30 -.04 -.08
+Teck Resources 25.29 -.27 -1.06
+TELUS Corp. 40.29 .03 .07
+Thomson Reuters 39.53 .14 .36
+Tim Hortons 60.09 .26 .43
+Tourmaline Oil 54.60 -.60 -1.09
+TransCanada Corp. 51.15 .15 .29
+Turquoise Hill Resour 4.19 .00 .00
+Valeant Pharmaceutical 138.22 -3.18 -2.25
+Vermilion Energy Inc. 72.04 -.01 -.01
+West Fraser Timber Co 53.28 -.59 -1.10
+Yamana Gold Inc. 8.22 .40 5.12
+Free annual reports for companies with this symbol. Reports mailed next business day, subject to availability. To order, call 1-800-965-6199 or visit www.theglobeandmail.com/annual or fax 1-800-617-7678 including ticker symbols for companies requested.
Companies wishing to participate in this service, please contact Scott Moody at 1-804-327-3440.
Oil West Texas US$/bbl 102.06 0.10
Oil Brent US$/bbl 110.17 0.73
Nat Gas H. Hub US$ mmbtu 4.38 0.01
Gold US$/troy ounce 1305.80 12.00
Silver US$/troy ounce 19.80 0.26
Copper US$/lb 3.14 0.03
Lead US$/lb 0.98 0.02
Zinc US$/lb 0.95 0.02
Aluminum US$/lb 0.82 0.01
Nickel US$/lb 9.09 -0.43
Wheat CBOT US$bsh 6.90 -0.19
Lumber KD W. S-P-F, Mill US$ 346.00 0.00
Framing Lumber Composite 376.00 0.00
Corn CBOT US$bsh 4.96 -0.07
Soybeans CBOT US$bsh 14.87 0.03
Canola InStr Vn 1Cda C$ tnne 532.80 -4.40
Feed Barley Lthbr. C$ tnne 214.00 5.00
Feed Wheat ThdrB C$ tnne 245.00 0.00
Canadian dollar 1.0887 1.8272 1.4935 0.010700 1.2237
U.S. dollar 0.9185 1.6783 1.3718 0.009828 1.1240
British pound 0.5473 0.5958 0.8174 0.005856 0.6697
Euro 0.6696 0.7290 1.2234 0.007164 0.8193
Japanese yen 93.46 101.75 170.76 139.58 114.36
Swiss franc 0.8172 0.8897 1.4932 1.2205 0.008744
Mexican peso 11.8385
Australian dollar 0.9794
2 Year 1.05 -0.018
5 Year 1.56 -0.067
10 Year 2.28 -0.073
30 Year 2.83 -0.061
BoC overnight target 1.00 Unch.
Canadian Prime 3.00 Unch.
2 Year 0.37 +.000
5 Year 1.56 .005
10 Year 2.54 .011
30 Year 3.38 .010
Fed Target rate 0.25 Unch.
U.S. Prime 3.25 Unch.
Oil prices rose, lifted by a new decline in U.S. oil invento-
ries at the Cushing, Okla., storage hub. Nickel prices fell
more than 4 per cent as some investors saw the markets
Indonesian supply problem as fully priced in. The Thom-
son Reuters/Jefferies CRB Index rose 1.19 points to 308.66.
The Canadian dollar rose 0.23 of a cent to 91.89 cents
(U.S.) amid general U.S. dollar weakness and higher com-
modity prices. The greenback was little changed against
the euro and fell against the yen.
Canadian bond prices were carried aloft by a global bond
market advance on conjecture that key central banks will
remain committed to loose monetary policy and low in-
terest rates. U.S. Treasury bonds rallied, along with
government bonds in the euro zone and Britain.
J J A S O N D J F M A
292
270
314
2013 2014
J J A S O N D J F M A
0.94
0.88
$ 1.0
2013 2014
MOST RECENT 1 WEEK AGO 4 WEEKS AGO
1 3
MONTHS
6 2 3
YEARS
5 7 10 30
0%
2%
4%
CURRENCIES
CANADIAN DOLLAR / U.S. EXCHANGE RATE
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BONDS
GOVERNMENT OF CANADA BOND YIELD CURVE
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COMMODITIES
THOMSON REUTERS / JEFFERIES CRB INDEX
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ECONOMY AND MARKETS
CLOSE CHG %CHG
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CLOSE CHG %CHG
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CLOSE CHG %CHG
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CLOSE CHG %CHG
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CLOSE CHG %CHG
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PRICE CHG
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PRICE CHG
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CLOSING PRICES
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CANADIAN U.S. BRITISH JAPANESE SWISS
DOLLAR DOLLAR POUND EURO YEN FRANC
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FOREIGN EXCHANGE CROSS RATES
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YIELD CHANGE
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RATE CHG
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RATE CHG
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Rates
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Rates
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CANADA
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U.S.
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LAST 12 MONTHS LAST 12 MONTHS: VALUE IN $US LAST 5 BUSINESS DAYS
SOURCES: REUTERS, AP, BLOOMBERG, RANDOM LENGTHS, WINNIPEG COMMODITIES
EXCHANGE, DJ
SOURCES: BANK OF CANADA, BLOOMBERG, DJ, AP, CP
CROSS RATES ARE NOON RATES SUPPLIED BY BANK OF MONTREAL SOURCES: CBIDATS, PERIMETER MARKETS INC., BLOOMBERG, REUTERS, AP, CP
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GLOBE INVESTOR
TOP-RANKING STOCKS IN CPMS U.S. EARNINGS VALUE MODEL PORTFOLIO
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
T F M T W
0.92
0.91
$ 0.93
YIELD CHANGE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ROB 100 LARGEST STOCKS FROM THE TSX COMPOSITE BY MARKET CAPITALIZATION
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J J A S O N D J F M A
2.25
1.95
1.65
$ 2.55
2013 2014
J J A S O N D J F M A
28.0
24.5
21.0
$ 31.5
2013 2014
D J F M A
58
44
30
$US 72
2013 2014
J J A S O N D J F M A
6.65
5.45
4.25
$ 7.85
2013 2014
J J A S O N D J F M A
11.0
8.75
6.5
$US 13.25
2013 2014
EYE ON EQUITIES STOCKS THAT SHOULD BE ON YOUR RADAR SCREEN 9 BY DARCY KEITH AND JODY WHITE
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Twitter Inc. (TWTR-NYSE)
Close: $32.85 (U.S.), down 54
Inter Pipeline Ltd. (IPL-TSX)
Close: $30.26, down 28
Twin Butte Energy Ltd. (TBE-TSX)
Close: $1.86, down 39
TD Securities downgraded Twin
Butte Energy Ltd. to hold from
buy after the company once
again lowered its production
guidance as a result of operation-
al challenges. Analyst Aaron Bil-
koski speculates Twin Butte may
be heading toward a cut in its
dividend.
Target: He cut his price target to
$2.50 from $3.25. The analyst con-
sensus target over the next year
is $2.75, according to Thomson
Reuters data.
CIBC World Markets Paul
Lechem downgraded Inter Pipe-
line Ltd. to sector performer
from sector outperformer in
the wake of its lacklustre first-
quarter results. Mr. Lechems
downgrade was mostly tied to
valuation. The stock has per-
formed very strongly in 2014, he
said.
Target: Mr. Lechem maintained a
$30 price target. The analyst con-
sensus price target is $31.40.
Pivotal Research analyst Brian
Wieser upgraded Twitter Inc. to
hold from sell, even while
cautioning the stock could still
slide further as investors fret
about future user growth. If there
is more downside for the shares,
we would consider those moves
as buying opportunities.
Target: He maintained a $34
(U.S.) price target. The analyst
consensus price target is $44.27.
Raymond James analyst Theoni
Pilarinos upgraded McCoy Corp.
to outperform from market
perform after the company,
which provides specialized
equipment to the oil and gas sec-
tor, reported a stronger-than-
expected fiscal fourth quarter.
Target: Ms. Pilarinos raised her
price target to $7.25 from $6.50.
The analyst consensus price tar-
get is $7.55.
SunOpta Inc. released record
first-quarter numbers on Tues-
day, setting the stage for long-
term gains for the health food
maker, according to Peter Prattas
of Cantor Fitzgerald Canada. Rev-
enue of $334-million (U.S.)
which blew away the consensus
of $298-million represents a
year-over-year increase of 17.9
per cent.
Target: The analyst maintained
his buy rating and $14 price
target. The consensus price target
is $12.57.
McCoy Corp. (MCB-TSX)
Close: $6.65, up 41
SunOpta Inc. (STKL-Nasdaq)
Close: $12.65 (U.S.), up $1.40
For more analyst commentary on these and other stocks, Globe Unlimited subscribers can read our daily upgrades and downgrades roundup at tgam.ca/inside-the-market
CRAIG McGEE
NUMBER CRUNCHER
Mr. McGee is a senior institutional
account manager of global equity
and market data sales at
Morningstar Research Inc.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
W
icker and its close cousins caning, thatch-
ing and plaiting is like whisky, wine and
Joan Rivers it just keeps getting better with
age. The weaving technique, which basically
involves wrapping thin reeds or twigs in and
around other thin reeds or twigs to make some-
thing strong and pliable, goes back to Ancient
Egypt, and has been used to create lightweight,
durable baskets, seats and tables ever since. Its
particularly common these days on patio sets,
but, thankfully, its not limited to outdoor decor.
Perhaps because it taps into our collective, pri-
mordial roots, and so has an innate, reassuringly
human quality or because its a skill that has
endless, regional variations, giving it a certain,
design terroir creative makers from all over
the world continue to find new, unexpected
ways to incorporate it into furniture.
Some of the innovation sticks closely to the
arts ancestry, updating it simply with shapes
(like Chilean studio Made in Mimbre, which
uses uses time-honoured, South American tech-
niques and indigenous materials to craft wicker
lamp shades). Some of the updating is in the
application appending a touch of stunning
weave to a piece of modern technology to give it
a more Earth-bound feel, or using unusual ma-
terials and colours (think never-wear synthetics,
and bright colours like turquoise and bubble
gum pink).
Either way, wicker has never looked fresher.
Wicker, Page 4
Something wicker
this way comes
Drawn to its reassuringly human quality, designers
are finding unexpected ways to incorporate this
time-honoured weaving technique into furniture,
Matthew Hague writes. The result is wicker
like youve never seen it before
LIFE EDITOR: KATHRYN HAYWARD ARTS EDITOR: JARED BLAND
A
HOME & DESIGN
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SECRETS OF SUCCESS
Being the first to arrive
and last to leave isnt enough,
JENNIFER HEIL reveals PAGE 7
HELLO DOLLY
Its easy to write a peppy little
song, the queen of country
tells BRAD WHEELER PAGE 2
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THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 SECTI ON L
R
oyal Bank of Canadas Water-
scape Garden is hedged in
hawthorn, shadowed by alders,
crawling with ferns and dotted
with crocus, iris and anemone.
Its the size of a suburban bun-
galow but seems larger, like an
idyll seen through the eyes of a
film director, such as Sofia Cop-
pola or Lars von Trier a won-
der to walk through, but not
overtly so: Wow factor with a
small w.
This green space has a more
sober mission than delighting
with bold colours and gestures.
Under the surface, it is working
hard. The Waterscape Garden is
part of the Blue Water Project,
the banks long-running charita-
ble endeavour to help preserve
clean water and promote re-
sponsible use and management.
On May 20, RBC will unveil it at
the Chelsea Garden Show in
London as a model of what can
happen when gardeners put
their mind to tackling that grow-
ing threat: stormwater runoff.
The Venetians are drowning in
stormwater. The Dutch are bare-
ly keeping their heads above it.
If it doesnt exactly make front-
page news in Canada, it could
soon. Each new road, property
development, factory or airport
creates a fresh obstacle for rain
or melted snow returning to the
earth. Instead, the runoff is
forced into lakes and rivers and
mucks up our drinking water
with chemicals, salt and pollu-
tants. The increased and accel-
erated water flow causes
riverbanks to erode, which
wreaks havoc on animal and
human habitats.
According to a recent Canadian
Water Attitude Study, more than
3.5 million Canadians were
affected by extreme weather
events last year. Yet, only 23 per
cent worry about droughts or
flooding and only 9 per cent
have implemented precaution-
ary measures to protect their
property. More than half of all
Canadians have impermeable
paved driveways that exacerbate
the problem. Meanwhile, be-
neath them, in cities such Toron-
to, archaic sewers are
unequipped for stormwater
management.
Word is getting out. The City of
Vancouver has begun to pave
streets with absorbent materials,
bordered by greenbelt to filter
rain back into streams and
ponds. Crown Street, on the
West Side, was deemed Canadas
first environmentally friendly
street when it was reconstructed
10 years ago from permeable
material and edged with reten-
tion ponds. Sackville, N.B.,
recently piloted a rain-garden
project with financing from the
Environmental Trust Fund.
Water, Page 6
ENVIRONMENT
A striking
green space
with a sober
mission
RBCs Waterscape Garden
is a model of what
can happen when
landscapers put their
minds to tackling
the growing threat
of stormwater runoff
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ELLEN HIMELFARB
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STYLE SO HOT
IT SIZZLES.
KEVIN SPACEY SAM MENDES AND THE BRIDGE PROJECT COMPANY IN
NOW
INTHEWINGS ONAWORLD STAGE
PRODUCEDAND DIRECTED BY JEREMYWHELEHAN
flmswelike
TONIGHT - ONE NIGHT ONLY!
THURSDAY MAY 15
Kevin Spacey and Troupes Staging of
Shakespeares Classic Tragedy RICHARD III
Visit CINEPLEX.COM/EVENTS for tickets and participating theatres
[SUBJECT TO
CLASSIFICATION]
L2 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 GLOBE LIFE & ARTS
ARTS
TODAYS KENKEN SOLUTION
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TODAYS SUDOKU SOLUTION
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O
ne of the more intriguing
festival bookings this sum-
mer is the appearance of Lionel
Richie at next months Bonna-
roo. His last No. 1 hit was 1985s
Say You, Say Me, a poignant bal-
lad with Martin Luther King-like
aspirations. Who among us can
ever forget the spine-tingling
line, I had a dream, I had an
awesome dream.
Okay, so its easy to have a lit-
tle fun at the expense of the Sail
On singer. Richie was never mod,
and he presented his brand of
pop earnestness straight up and
all night long, especially the out-
rageously sincere soft soul with
the Commodores. So, if 2014 is
the summer of Richie, his new
coolness wreaks of hip irony. On
the other hand, the fandom of
another veteran, Dolly Parton, is
heartfelt. Shes always had a
hokey persona, from her car-
toonish bosom to her unnatural
cheerfulness and gaudy re-
splendence. But underneath all
that was a genuine songwriter
and artist; for her debut Hello,
Im Dolly in 1967 she recorded
Dumb Blonde, but she was never
one of those. As she has said, I
may look fake, but Im real
where it counts.
Indeed she is, and a new wave
of female country songwriters
are just more in a long line of
believers. The talented upstart
Kacey Musgraves a double win-
ner at this years Grammy
Awards and the head of a whip-
smart class that includes Brandy
Clark, Ashley Monroe, Caitlin
Rose and Canadas Whitney Rose
(see sidebar) has gone on
record in regard to her admira-
tion of Parton. I think shes a
great storyteller with her lyrics,
the Texas native Musgraves,
whose own writing is fresh and
frank, recently said. Shes a
pretty face, but shes also intel-
ligent and witty. Shes definitely
someone I look up to.
So Parton is short in height,
but long in stature by way of
her indomitable singing and
songwriting, certainly, but also in
her strength and individualism.
It all comes together in some-
thing like 1968s Just Because Im
a Woman, a defiant proto-femi-
nist manifesto and sharp rebuke
to the double standards of men.
This week, Parton released her
42nd studio album, Blue Smoke,
and kicked off a second North
American leg of a world tour.
(No Canadian dates yet
announced.) On the phone from
Nashville, her high drawl is in
delightful perk and full howdy
mode. The conversation is brief,
but enough ground is covered.
Reflecting on the albums duet
with Kenny Rogers (You Cant
Make Old Friends), and the dur-
ability and musical compatibility
the two share, she said: Our
voices and personalities blend.
Were still a force. We might not
be having hit records on the
radio, but were still around.
With Kenny and I, and Willie
Nelson, maybe were just a little
stronger somehow, or a little
more willing to work a little har-
der or a little longer.
On Banks of the Ohio, a murder
ballad: I grew up on mountain
songs, says the Tennessean
whose 1970 version of Jimmie
Rodgerss Blue Yodel No. 8 earned
her one of her 46 Grammy nomi-
nations. Thats just embedded
in my DNA and my psyche. I call
it my Smoky Mountain DNA.
To the casual fan, though, it
isnt Partons high and lonesome
genetics that are identified with,
but the pop-crossover instincts
that resulted in something like
the endearing duet cover of the
Bee Gees Islands in the Stream in
1983, with Kenny Rogers. But
Parton has always shown a ca-
pacity to go deeper and darker.
Down from Dover, for example,
was her reaction to the wave of
unwanted teenage pregnancies
in the late 1960s, while 1973s
harrowing Jolene (covered by the
White Stripes and many others)
is a desperate plea from a wife
to another woman to stay away
from her man.
Its easy to write a peppy little
song, but I have many emo-
tions, Parton explains. As a
writer, I have to live with my
feelings on my sleeve, so I hard-
en my heart. I strengthen the
muscles around it. People always
tell me I look happy, and I just
say, Well, thats the Botox.
Shes a pistol, then. We also
touch on the respect she
receives from the young genera-
tion of lady songsters. But I
dont know them, Parton
admits when asked about Mus-
graves and the others. Ive nev-
er met them, but I see their
videos on TV and I admire
them.
At this point in her career
she is 68 years old and signed
her first deal, with Monument
Records, in 1965 at age 19 does
another cover version of her
Jolene register with her any
more? Its an honour, especially
as a songwriter, she says. I take
that more seriously than any-
thing I do. If I had to quit every-
thing else and just do one thing,
I would choose to be a songwrit-
er. Thats where my heart is.
When it comes to the praise
she receives from other artists,
its hard to believe any more val-
idation would be required. But
she brushes off nothing. It
makes me feel good, she says
after a pause. Like maybe I did
something right.
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Follow me on Twitter:
@BWheelerGlobe
MUSIC
Parton still singing her heart out
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BRAD WHEELER
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Blue Smoke is the 42nd studio album from legendary country singer and songwriter Dolly Parton.
ADMIRING DOLLY
The first song that Toronto-
based, PEI-raised country sing-
er Whitney Rose learned was a
Dolly Parton tune, and shes
currently at work on a second
album with a backing band
that includes Partons bass
player Jay Weaver. She explains
why she will always love Dolly.
One of the first songs I ever
learned was Dollys Coat of
Many Colors. I was a toddler
basically, and I would sing it at
East Coast kitchen parties, at
my grandparents place. I still
sing it.
What I like about Dolly is
the simplicity of her songwrit-
ing. Shes honest, and shes
brave lyrically. When you look
at her song I Will Always Love
You, it was about her leaving
The Porter Wagoner Showin
1974. She rose to fame on that
show, and she chose the per-
fect moment to leave. She cap-
italized on it further by writing
this poignant, relevant song.
Dolly is a brilliant songwrit-
er, but shes also a brilliant
businesswoman. She turned
down Elvis when he wanted to
sing I Will Always Love You. She
was open to the idea originally,
but declined when she learned
that she would be expected to
sign over half the publishing
royalties to Elvis. She stood her
ground, even though it would
have made her rich.
If youre only familiar with
Dolly Parton on a surface level,
shes a ditzy blonde. And
theres no denying she used
her sex appeal. I mean look at
her shes almost 70 years old
and shes still sexy. But she
owns that as well. Thats the
thing: She owns everything
about herself.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
As told to Brad Wheeler
TELEVISION
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John Doyle will return
THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A L3 GLOBE LIFE & ARTS
WHAT THE NOSE KNOWS
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SPOTLIGHT
Just in time for the latest revelations about the U.S. National Security Agency,
What the Nose Knows is now keeping watch over Castlegar, B.C., from its perch
along the citys Sculpturewalk. In this work, Groucho Marx meets the NSA
menace, with giant, convex mirrored lenses inside circular red frames both
hiding nosy eyes, and reflecting. I was trying to make a funny comment on
governments and corporations spying on us all the time, says Burnaby-based
artist Ron Simmer, who doesnt actually find the issue funny at all. Its like Big
Brother all over again. But this Big Brother, he explains in his artists state-
ment, is more of an evil clown than a dictator. Simmer, 71, had initially in-
stalled the work on Vancouvers Granville Island, and then at the Peace Arch
Park International Sculpture Exhibition at the border crossing. With the origi-
nal four-metre high, 680-kilogram work unveiled last weekend in Castlegar
the Sculpture Capital of Canada Simmer is making a new version for Lake
Oswego, a sculpture-friendly suburb of Portland, Ore., with at least one adjust-
ment. Im trying to get a bigger, more sinister-looking nose, he says.
Marsha Lederman
Presented by Produced by In partnership with With the support of Associate Sponsors
Dinner Sponsor Mentorship Program Print Sponsor Inspiration Seats
Regional Partners
Media Partners
On Saturday, May 10, 2014, the Governor
Generals Performing Arts Awards Gala at
the National Arts Centre celebrated this
years recipients of Canadas highest
honour in the performing arts.
Our deepest thanks to the 2014 GGPAA Gala
National Committee led by Honorary Chair
The Hon. Hilary M. Weston, C.M., O.Ont.
and Co-Chairs Kate Alexander Daniels
and Salah Bachir.
I N APPRECI ATI ON OF OUR SPONSORS, DONORS AND PARTNERS
National Partners
National Media Partner
Margaret and David Fountain, Susan Glass and Arni Thorsteinson, The Jackman
Family, Nadir and Shabin Mohamed, The Pearl Family, Emmelle and Alvin Segal,
O.C., O.Q. and The Honourable Hilary M. Weston and W. Galen Weston.
Special Thanks Communications Partner
DOWNLOAD YOUR FREE PERFORMI NG ARTS AWARDS EBOOK FROM I TUNES. COM/ GGPAA
Special Thanks
EQ3 Ltd., EY, Holt Renfrew& Company, KPMGLLP, The Ledcor Group, Mark Motors of Ottawa Ltd., Mongrel Media, Trinity Development Group, Gail Asper
O.C., O.M. and Michael Paterson, Kimberley Bozak and Philip Deck, John and Bonnie Buhler, Greg Doyle and Carol Bellringer, Bill and Barbara Etherington,
Donald K. Johnson and Anna McCowan Johnson, Leacross Foundation, Rod and Jeannie Senft, and Brent Trepel and Brenlee Carrington Trepel.
Table Patrons
Photo: Sophimage Photography
TO SUBSCRIBE
CALL 1-866-36 GLOBE
Light
Chilean studio Made In Mimbre
which employs South American
artisans to make contemporary
decor using sustainable materials
was inspired by jellyfish for its
ethereal floor lamp, Medusa. The
light appears to hover over the
ground on wispy, straw-thin ten-
drils. Three, discrete metal legs
support the structure and create
the illusion. $320 (U.S.). Through
madeinmimbre.com.
Lie
The Family Love Tree is an Australian furniture
firm that takes timeless rattan and wicker furni-
ture and makes it whimsical. The Toulouse
headboard, which is available in twin, double,
queen and king sizes, gives a classic, hand-made
wood form a jolt of energy with bright colours
such as mint, aqua and pastel pink. From $495.
Through thefamilylovetree.com.au.
FROM PAGE 1
Wicker: Six sophisticated ways to bring wicker into your home
Display
For his Centerpiece vases, Nether-
lands-based designer Daniel
Hulsbergen has combined two
old-time, traditional Dutch crafts
to modern effect. The base is a
chipped-and-battered Delft Blue
vase. Its upcycled with a wicker
spout to give it a new life. Price
upon request. Through
danielhulsbergen.com.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sit
Italian designer Paola Navones
Como chair is like Paris-meets-
punk. The frame is styled after
the seats commonly found in
French cafs. The grey and white
pattern, hand-woven in a synthe-
tic, durable rattan, is a playfully
edgy houndstooth. $550. Through
crateandbarrel.com.
Listen
The aesthetic issue with most
tech toys is simple: they tend to
be cold looking and kind of ugly.
French designer Mathieu Lehan-
neur has added a welcome bit of
warmth to Lexons hybrid radio
and MP3 amplifier by encasing
the hard plastic shell in a caned,
all-natural rattan. Available start-
ing in September, through
lexon-design.com.
Weavers Art is moving...
Special Sale
...on entire inventory
Main showroom only
348 Davenport Road | Toronto, ON
416.929.7929 | www.weaversart.com
Final Countdown...Only 10 Days Left!
Weavers Art is a trade only showroom
and this is your only chance to get the
perfect area rugs for your home at a
substantially reduced prices.
Do not miss this event!
We have extended our hours to
make it more convenient for you.
Saturday May 17th: 10am - 6pm
Sunday May 18th: 10am - 6pm
Monday May 19th: 10am - 6pm
(Victoria Day)
Sunday May 25th: 10am - 6pm
(Final Day)
Sale Ends Sunday May 25
th
L4 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 GLOBE LIFE & ARTS
COVETED COFFEE SET
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Luca Nichetto is an industrial designer who splits his time
between Venice and Stockholm. John Baker and Juli Daoust run a
lifestyle store and gallery in Toronto called Mjolk. The three met
by chance last year Nichetto was in Canada for the Interior
Design Show, and, on the advice of a friend, dropped by Baker
and Daousts showroom. They hit it off instantly and, after a
15-minute chat, decided to collaborate. Nichetto wanted to create
a coffee set hes Italian, strong brew is a daily ritual. Daost and
Baker introduced him to local artisans ceramist Alissa Coe,
sculptor Scott Eunson to help produce the pieces in Toronto.
The resulting set is as cross-cultural as it is comely. The shape of
the pot was inspired by a 1960s, Italian TV character named
Carmencita, and the simple tray is made from the most iconically
Canadian wood: maple. $595 for the complete set. Mjolk, 2959
Dundas St. W., Toronto, 416-551-9853. Or through mjolk.ca
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Matthew Hague, Special to the Globe and Mail
Relax
Although its meant for in-
doors, Ralph Laurens Joshua
Tree dining chair has a sum-
mery, patio feel. The oversized
woven chords are made from
natural lampakanay fibres.
The weaving technique was
inspired by the roofs of trop-
ical palapa loungers. $2,175.
Through elte.com.
PHOTO BY VRONIQUE HUYGHE
*Applies to the SHX9PT75UC model only.
**Offer is not valid in conjunction with any other Bosch offers. Valid at participating dealers only. See dealer
for details. Rebate is applied at time of purchase. Price shown may reect rebate amount at some retailers.
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L6 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 GLOBE LIFE & ARTS
YARD CARE
Some tips for smaller-scale
improvements you can make
at home:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Break up your hard surfaces
with landscaping or get per-
meable paving, which allows
water to go back into the
earth.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disconnect your gutter down-
spout so it doesnt aim for the
drain. Allow the runoff to go
into the ground instead.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Incorporate drought, flood
and pollution-resistant plants
into your existing garden.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Instead of large swaths of turf,
consider a more interesting
landscape of gravel and boul-
ders that doesnt require
upkeep and commitment.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ellen Himelfarb
And two summers ago Sher-
bourne Common in Toronto
was launched with an epic design
by landscape architects Phillips
Farevaag Smallenberg that incor-
porated water sculptures by Jill
Anholt and an entire stormwater-
treatment facility in the fabric.
RBC looked to thriving young
British landscaper Hugo Bugg to
design its show garden, mandat-
ing a raft of practical water-man-
agement solutions that bring the
issue to life. The result is flexible
enough to deal with conditions
from drought to floods but avoids
the clunky apparatus you might
associate with a water-manage-
ment system. To achieve it, the
27-year-old devised a layered
scheme that conceals the ugly
bits and provides visual depth
while mimicking natural water-
shed.
On the surface are geometric
beds made from permeable ma-
terial designed to withstand the
pressure of falling water. Those
beds capture stormwater runoff
and channel it into a filtration
bed, which cleans grimy water
from roads and roofs before let-
ting it into the ground.
If that overflows, Bugg says,
excess water goes into retention
pools, like pretty reservoirs that
can be tapped during the dry
months. Two more layers below
that cope with more overflow,
and a large depression in the
ground contains marginal plants,
such as grasses and irises, which
handle flooding well.
The idea, he says, is that
when the first three layers fill
with water, the depression can
receive the extra runoff. The
overall flow ensures that each
layer is flooded for a shorter time.
The system mimics the natural
depressions and native vegeta-
tion that should intercept rainfall
but are being lost with the prolif-
eration of impervious roads and
rooftops. Urban populations are
on the increase dramatically, and
that means more hardscaping,
more development work, more
pressure on urban drain sys-
tems, Bugg says. Our garden
looks at how we deal with water
in an urban environment, how
we can minimize stormwater and
flash flooding.
The RBCs brief was inundated
with sustainable catchwords:
urban cooling, flood prevention,
water retention, biodiversity.
Buggs design ticks them all off
while appearing not to. Yet, he
alludes to them symbolically. He
has constructed hexagonal beds
to represent the iris, which has
three primary and three second-
ary petals. And, he has incorpo-
rated five pentagonal features, in
reference to the five-sided shape
of the water molecule. The result
has edgy contours that recall
cracked earth, a consequence of
drought.
In Ontario, stormwater man-
agement has officially been on
the government agenda since the
1990s. But Mark Schollen, an
award-winning landscape archi-
tect whose practice Schollen &
Co. is based in Richmond Hill,
Ont., argues it still hasnt found
its rhythm.
Recently, Schollen worked with
Mississauga on stormwater plant-
ers that take runoff from the
adjacent road and filters it
through a special bioretention
soil to a medley of plants.
Instead of using the previous
technique, which was to run a
sewer pipe into a pond and treat
the water there, were now work-
ing on low-impact developments
that allow water to get back into
the soil and treat it as close to
source as possible, he says. The
planters have seen, he says, zero
runoff.
In Torontos Riverdale neigh-
bourhood, Schollen piloted a
scheme to build rain gardens
on 12 residential properties, each
with a downspout that channels
rain into the ground. The gardens
are built on sandy, permeable soil
and planted with rain-tolerant
ground cover. That project has
whetted local appetites for more.
But the most attention has
gone to his design for the Honda
Canada Campus in Markham,
Ont. That scheme manages run-
off from a 1,000-car parking lot
and roofs that cover half a mil-
lion square feet. Its the largest of
its type to rely solely on land-
scape-based stormwater-manage-
ment techniques, including a
system of gravel-filled trenches
that attenuate the water flow into
the soil. The cleaner runoff from
the roofs goes into storage tanks
to irrigate the gardens. That sys-
tem is relatively complex because
of the controls that regulate the
water flow, says Schollen, but it
benefits from the trees and
shrubs, which transpire water
from the ground. Transpiration
plus filtration.
Thats not to say we cant all
learn from the grander schemes.
Schollen has installed a permea-
ble-pavement driveway at home
to do his part. The water lands
on the driveway, goes into a stone
mantel below ground. When that
system overflows, it connects to a
filtration system in the front
yard. Permeable precast pavers
cost about $120 a square metre.
Schollen also advocates putting
aside another $500 for sub drains
and a deeper granular base to
enhance filtration.
How much of a difference can a
100-square-foot driveway truly
make? On an individual lot
basis, the benefits are limited, he
admits, but by multiplying it,
the benefits are significant. Say
there are 400 homes in an area
if we can convince 50 to get a per-
meable drive, the net impact on
water discharge from that area
will be significant.
Taking a holistic view, he also
suggests scaling back on large
tracts of lawn, which need fertil-
izers and irrigation systems to
survive, and embracing the trend
toward native plants. Also, paying
attention to the soil mix in plant-
ing beds: In the past, youd just
dig up the dirt and put in your
plants, says Schollen. But now if
you want a garden to function
and sustain growth, you need
more sand and less organic mat-
ter youre trying to maximize
the pore space.
It all sounds highly technical,
but as Buggs Chelsea garden
proves, it doesnt have to look
that way. A water-efficient gar-
den can also be beautiful, he
says. It doesnt have to jeopard-
ize the aesthetics.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special to The Globe and Mail
Royal Bank of Canada called upon British landscaper Hugo Bugg to design its show garden, which is being unveiled at the Chelsea Garden Show in London.
FROM PAGE 1
Water: Our garden looks at how we deal with water in an urban environment
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9
T
heres an undeniable voyeur-
istic appeal to British journal-
ist Ellie Tennants new book,
Design Bloggers At Home. Who
wouldnt want a peek behind the
curtain at the pros own homes?
But the book is designed with
the very practical goal of helping
to inspire readers to rethink their
own decor, including lots of close-
up details so that people reading
it can take ideas away for their
homes, Tennant says.
The book features a wide range
of styles: the pared-back look
favoured by Niki Brantmark, who
writes the blog My Scandinavian
Home; the retro chic digs of Vic-
toria Smith, the mind behind SF
Girl by Bay; and the colourful
eclecticism of Justina Blakeney,
whose eponymous blog frequent-
ly features a peak inside her bun-
galow, which shes lovingly
dubbed the Junglaow.
Getting bloggers to participate
in the book wasnt hard.
Theyre not the most private of
people, Tennant says. Every-
body was up for it.
Theyre all completely ob-
sessed with their houses and that
is all they think about, she says.
That obsessiveness leads to fre-
quently mixing up the look of
their space. They change their
style so much, Tennant says.
Even if youre only in it for the
eye candy, its impossible not to
come away from the book with a
few ideas of how to decorate your
space. Like adopting some of the
small details, such as the painted
boxes in Jane Schoutens craft
room, which she uses to display
all sorts of quirky knick-knacks.
It also helps you see the possi-
bilities for harmonizing wild jux-
tapositions, like the ranch house
in northern California that Maria
Carr, who runs the blog Dreamy
Whites, has designed in French
farmhouse style.
The latter is a perfect example
of what Tennant hopes readers
take from the book, she says.
It doesnt matter where you
live or what kind of building you
live in, you can literally create any
kind of interior you like if you use
imagination and creativity, Ten-
nant says.
DESIGN
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
RYLAND PETERS AND SMALL
Star bloggers share their secrets
Primp semi-evergreen
perennials
At the Halifax Public Garden, gar-
dener Helen MacLean
cuts back the older leaves of
semi-evergreen perennials such
as bergenia, coral bells and ladys
mantle. Winter will
have burned some of the
leaves, so prune them back to the
stems, she advises. Not only
does this improve the
look of the plants, it stimulates
fresh growth. Heuchera [coral
bells] grows from the top
of a stalk, she explains. So
clean up the lower leaves,
mulch around the plant with
compost and then new, large
leaves will start to grow along the
stem.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Wither flower bulbs?
Once spring bulbs have finished
flowering, resist the temptation
to cut back the foliage.
The leaves will feed the plant
for next years flowers, says San-
dra Pella, head gardener at the
Toronto Botanical Garden. As she
deadheads the spent flowers,
Pella lassos the foliage of spring
bulbs, using twine to tie them
into upright bunches until the
leaves die back naturally. The
bundles look neater than sprawl-
ing leaves, and make it easier to
cut the browned foliage down to
the ground once its died back
completely.
This works especially well for
large daffodils, hybrid tulips and
alliums, she says.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Up the stakes
Without the support of stakes,
hoops or loops, tall perennials,
such as delphiniums, phlox, iron
weed, aster, bee balm
and helenium, can be a big
flop in the late summer garden.
Its much easier to stake them
now than to wrestle with
their cumbersome stems and
trample the surrounding plants.
Tracy Jessen, gardener at the
Halifax Public Garden, uses
peony rings, bamboo stakes and
hoop stakes (where the open-
ended hoop can be adjusted to
the size of the stems) to support
tall plants while theyre short.
Simple division
Spring is a great time to rejuve-
nate perennials that have
died out in the middle, over-
grown their space or that are pro-
ducing fewer flowers. But many
ornamental grasses and perenni-
als such as large, mature hostas
can be difficult to divide. At the
Toronto Botanical Garden, Pella
makes this task easier by dividing
the tough, matted roots of these
plants while theyre still in the
ground. Its easier to leave them
in the ground and divide them
there than to dig out the entire
plant and then divide it, she
says. And it saves your back.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slow food
Compost is all it takes to keep
even wisteria, clematis and roses
blooming at the Toronto Botan-
ical Garden. The nutritional val-
ue lasts several years, Pella says.
We broadcast it on all our
shrubs and perennial borders
and the plants look clean and
healthy theres not a blemish
on them.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special to The Globe and Mail
HORTICULTURE
Time to get your hands dirty
During prime-time spring gardening season, put your energies to work on
tasks that will pay you back in beautiful, healthy plants, Lorraine Flanigan
writes. Professional gardeners know that if you do these five things now, youll
lighten your load for the remainder of the season.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DAVE MCGINN
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JENNIFER HEIL
HEALTH ADVISOR
Health Advisor is a regular column
where contributors share their
knowledge in fields ranging from
fitness to psychology, pediatrics to
aging. Follow us @Globe_Health.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A L7 GLOBE LIFE & ARTS
W
hen sports psychologist
Travis Dorsch set about
studying the effect of parental
spending on young athletes, he
expected to find a positive corre-
lation. After all, recent research
suggests that young athletes
benefit from parental support.
But his study, just completed,
found that greater parental
spending is associated with low-
er levels of young-athlete enjoy-
ment and motivation. When
parental sports spending goes
up, it increases the likelihood ei-
ther that the child will feel pres-
sure or that the parent will exert
it, says Dorsch, a Utah State
University professor and former
professional football player.
The study adds to a small but
growing body of research sug-
gesting that parents ought to
temper their investments in
youth athletics. The problem, at
root, isnt financial: It is that big
expenditures tend to elevate pa-
rental expectations. The more
parents do, the more they
expect a return on their invest-
ment, possibly reducing their
chances of a favourable out-
come, says Daniel Gould, direc-
tor of Michigan State Universitys
Institute for the Study of Youth
Sports.
This finding is likely to baffle
parents who view Tiger Woods
and the Williams sisters as star-
studded products of heavy pa-
rental investment. It also calls
into question the validity, at
least in sporting arenas, of the
so-called tiger style of parenting
that spares no expense in the
pursuit of top-notch results.
Many sports parents struggle to
strike a balance between suppor-
tive and pushy. A parent in the
stands can help a child feel
proud about doing well, as well
as withstand the disappoint-
ments inherent in competition.
And without parental help, most
children couldnt afford basic
registration fees. But recent
research suggests that large
amounts of money can trans-
form support into pressure.
Mom and Dad are driving
young athletes to tournaments
across the country and spending
thousands of dollars on fitness
trainers, personal coaches and
therapists. Shane Murphy, a
sports psychologist at Western
Connecticut State University at
Danbury, says parents call him
and say: My child lacks the kill-
er instinct. Murphy, a former
sports psychologist for the Unit-
ed States Olympic Committee,
says he encourages them to seek
improvement rather than tro-
phies.
How deeply Mom and Dad
ought to invest in a childs ath-
letic activities is controversial.
Jay Coakley, a University of Colo-
rado professor emeritus of
sports sociology, argues that the
less the better. Greater parental
spending tends to weaken a
childs sense of ownership of his
athletic career, sometimes de-
stroying his will to succeed, he
says. Kids are being labelled as
burnouts when actually theyre
just angry at having no options
in their lives, he says.
Other researchers say heavy
spending is problematic only if
parents expect a performance-
related return on investment.
When you take your kids to
Disneyland, you hope it enriches
their day not that theyll win a
competition to take Mickey
Mouse home with them, says
Dorsch, a former Cincinnati Ben-
gals kicker who attributes his
own athletic success in part to
his parents relaxed approach.
Mark Leddy says he tempers
his expectations of his stepsons
athletic participation. Leddy and
his wife this year will spend
almost $6,000 (U.S.) about 8
per cent of their household in-
come on 12-year-old Camerons
Taekwondo lessons, competi-
tions, purchases of apparel and
equipment and travel to tourna-
ments.
The Leddys require that Came-
ron participate in a competitive
extracurricular activity. He is
expected to work hard at it and
do his best. His parents dont
expect Cameron to win. And if
he loses, he must do that with
grace. We know hes 12, but we
tell him: You dont get to act
like a child when you lose,
says Leddy, director of publica-
tions for the Naval Academy
Athletic Association in Annapo-
lis, Md.
Cameron says he knows his
Taekwondo costs his parents a
lot of money. He doesnt think
about it much, however, because
they never bring it up. He says
he appreciates the freedom to
choose his own sport, encoun-
tering no pushback from his
parents last year when he
switched to Taekwondo from
baseball. Far from feeling any
pressure to win, the Grade 6 stu-
dent says that, after losing, he
receives consolation from his
parents. My parents will bring
out the positives, such as maybe
I lost to a belt higher than me,
he says.
In his first year in Taekwondo,
Cameron earned a spot in a
national tournament this sum-
mer in Florida, a trip he under-
stands will be expensive. The
way we see it, just getting to the
nationals is a win, says Came-
ron.
The Leddy approach may not
be typical. In Dorschs study, 163
sports parents, including 85
women, answered an online
questionnaire about their in-
come and the cost of their chil-
drens athletic endeavours. A
majority 60 per cent spent
less than 1 per cent of gross in-
come on their kids sports, while
24 per cent spent between 1 and
2 per cent. Just 2 per cent of par-
ents spent more than 5 per cent
of income. The just-completed
study hasnt been published.
After their children completed
a separate survey, researchers
concluded that youth enjoyment
and motivation declined as pa-
rental spending rose. In one
case, a mother in a home with
gross annual income of
$200,000 reported spending
more than $20,000 on her 18-
year-old daughters volleyball
career. In turn, the daughter
reported feeling a high degree of
pressure (4 on a scale of 5) and
low degree of motivation (2.5 on
a scale of 5). The more parents
spent, the more the kids seemed
to feel the pressure of doing well
for Mom and Dad, says Dorsch.
In 25 years of coaching, Cour-
tney Pollins, president of Big
Apple Youth Football in New
York, says he has found that
parents who hire private coaches
and buy the most expensive
shoes tend to be the same par-
ents who are overinvolved
yelling at the coaches and yell-
ing at their own kids. I tell them
to go home and not come back
to practice.
Gould, of Michigan State,
recently completed a review of
the academic literature on pa-
rental involvement in youth
sports. His finding: Young ath-
letes thrive upon parental sup-
port but only to a point. The
review cites evidence that coach-
es may avoid young athletes
whose parents take too active a
role, and it makes mention of a
study in which 13 per cent of
young tennis players reported
that their parents had hit them
after matches. One study men-
tioned by Gould suggests par-
ents may want to invest in their
own athletic pursuit: It showed
that adolescents are twice as
likely to play organized sports if
their parents are physically
active.
How about the parents of
champions? A study of 10 U.S.
Olympic champions found their
parents exerted little external
pressure to succeed while ex-
pressing faith in the childs abili-
ty and emphasizing that if you
are going to do it, do it right,
according to Goulds paper,
which hasnt been published.
Dara Torres, a 12-time Olympic
swimming medalist, figured her
career might intimidate her
daughters swim coaches. So
Torres vowed to keep quiet dur-
ing the eight-year-olds practice
sessions. But when she recently
saw several swimmers on her
daughters team struggling to
perform a drill without fins, she
told the coaches that even elite
swimmers don fins for that drill.
Theyre using fins now, says
Torres, of Boston.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2014 Dow Jones & Co. Inc.
SPORTS PSYCHOLOGY
Reassessing the ROI on kids sports
Children whose parents spend more on their athletic endeavours tend to derive less enjoyment and be less motivated
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
KEVIN HELLIKER
WALL STREET JOURNAL STAFF
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cameron Leddys parents spend $6,000 (U.S.) 8 per cent of their household income on his Taekwondo lessons and tournaments. JONATHAN HANSON
I
n an athletes career, break-
throughs are critical in order
to rise to the top and to consis-
tently perform on demand. How-
ever, the idea that athletic
breakthroughs occur by simply
putting in long hours of techni-
cal practice is false. In fact, it
takes much more than being
the first to arrive and the last to
leave from practice in order to
succeed. It requires the align-
ment of the technical, mental
and emotional performance to
redefine athletic limits, and
while this alignment often hap-
pens haphazardly, in reality
breakthroughs can be manufac-
tured intentionally and often.
As an Olympic mogul skier
attempting to reach the pinnacle
of my sport, I aspired to become
better each day. Putting the idea
of creating breakthroughs into
the context of making small in-
cremental improvements was
less intimidating and allowed the
team to build a program of at-
tainable objectives. For the most
part my breakthroughs were not
monumental and most of the
times were unobservable to the
outside viewer.
But my team all understood
that careful planning, creating
the right environment and focus-
ing on targeted and achievable
objectives could coax out the
type of breakthroughs that are
required to continue to advance
in a very competitive landscape.
For example, goals such as man-
aging my energy more effective-
ly, or slipping into a state of
performance more fluidly, were
weighted equally with learning a
new aerial manoeuvre or skiing
the course more quickly.
Recently I had the opportunity
to watch many young female
mogul skiers create their own
breakthroughs, at my annual
mogul-skiing camp for girls. Over
the past eight years we have
used a similar formula in which
we see the skills of the girls im-
prove dramatically over the two-
day camp. I am always thrilled to
see such a change in confidence
and ability. Two days is not
much time to build technical
skills. The girls arrive at the
camp with the potential to ski
faster through the moguls and to
learn new aerial manoeuvres,
but it is the alignment of the
emotional and mental aspects
with the technical that I believe
helps the girls to flourish.
To achieve that alignment, we
keep three goals top of mind:
1) Build a positive environ-
ment. Without a positive envi-
ronment it is much more
difficult to create self-assured
emotions required for success.
There is a lot of cheering, holler-
ing and many smiles that can be
seen throughout the weekend.
Anyone who has been cheered
on knows how it can uplift and
open you to the possibility to go
beyond what you originally
thought possible. In an individu-
al sport such as mogul skiing,
competition is a solo effort. But
having a supportive team to pre-
pare and to train with on a daily
basis makes a difference. Sup-
porting your direct competitors
uplifts everyones performance.
It is really that simple a concept,
but it often doesnt prevail with-
out a conscious effort.
2) Manage the mental aspect of
performance. An essential aspect
of the mental game is being
motivated. Intrinsic motivation
can either apply or eliminate the
pressure to succeed. Negative
pressure disrupts performance
by creating doubt and an
emphasis on outcome rather
than process. Its important to
emphasize that the beauty of
sport is having the opportunity
to challenge oneself and to cele-
brate that effort. Throughout my
career the most rewarding
moments were not winning
medals but overcoming the fear
of injury and the intense pres-
sure to perform on demand.
Focusing on the effort removes
failure from the vocabulary.
3) Develop a training session
that is narrow in scope with
clear objectives to achieve con-
sistent technical improvements.
The lift-off phase of a 360 aeri-
al manoeuvre occurs with a
focus on only the essential
movements by creating a clear
path for execution. The arm
motion, managing the force with
the legs, height of the vision, hip
movement, distribution of
weight and timing are all essen-
tial to performing a well-exe-
cuted 360 aerial manoeuvre. But
one cant possibly think of all of
those factors in a split second
and succeed. Therefore, the
jump is distilled down to the
basics. The power to spin is
generated by the motion of
pushing the hips up and around
while looking into the distance
to remain balanced. If those two
aspects are accomplished the
rest of the jump will occur nat-
urally. Secondarily, clear objec-
tives also make it easier to
evaluate past performances and
readjust the plan to move for-
ward. Often, the girls pick up
their skis and hike up the hill
excited to try again.
Watching the young skiers land
their first 360 aerial manoeuvres
or ski more aggressively down
the course is fulfilling. The chal-
lenge is to construct and contri-
bute to a positive environment,
to focus on the process, to stay
focused and to celebrate the
mini-successes along the way. Its
reassuring to know that one can
have a plan to create break-
throughs.
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Jennifer Heil is a humanitarian and
an Olympic gold and silver medal-
ist in the sport of freestyle mogul
skiing. She is the co-founder of
B2ten and has raised more than
$1-million for the Because I am a
Girl initiative. Follow her on Twit-
ter @jennheil.
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Theres more to success than 10,000 hours
Olympic gold and silver medalist Jennifer Heil says it is possible to
manufacture a breakthrough through planning. PETER POWER/THE GLOBE AND MAIL
HEALTH
L8 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 GLOBE LIFE & ARTS
To be a competent declarer,
one must also be a worrier. Opti-
mism is unquestionably a great
asset at the bridge table as in
everyday life but its value is du-
bious when carried to the point
where a clear and present danger
is ignored.
Consider todays case
where South is in three no-
trump and West leads a spade. 10
tricks three spades, a
heart, ve diamonds and a club
seem likely when dummy comes
down.
But declarer should not blithely
proceed on the assumption that
the diamonds are divided nor-
mally that is, 3-2. He should al-
low for and, if possible, protect
against the possibility that the
diamonds might be divided 4-1
(or even 5-0).
South should therefore cash
dummys king of diamonds at
trick two (instead of leading a
low diamond to the ace, which is
more usual). As soon as both op-
ponents follow suit, the contract
becomes certain, regardless of
how the remaining diamonds are
divided.
When declarer leads another
diamond from dummy and
East produces the eight (it
doesnt help him to play the
10), South plays the nine. He
doesnt expect the nine to win
the odds are greatly against
it but win or lose, the deep
nesse assures scoring four
diamond tricks and nine tricks
in all.
In the actual deal, the safety
play produces 10 tricks. But note
that if declarer fails to play the
diamonds as suggested, he winds
up down one.
BRIDGE BY STEVE BECKER
INSTRUCTIONS
Fill in the grid so that each row of nine squares, each column of nine
and each section of nine (three squares by three) contains the
numbers 1 through 9 in any order. There is only one solution to each
puzzle.
SUDOKU
2014 KENKEN Puzzle LLC. KENKEN is a registered trademark of Nextoy, LLC.
Dist. by UFS, Inc. www.kenken.com
INSTRUCTIONS
1. Each row and each column
must contain the numbers 1
through 6 without repeating.
2. The numbers within the
heavily outlined boxes, called
cages, must combine using the
given operation (in any order) to
produce the target numbers in
the top-left corners.
3. Freebies: Fill in single-box
cages with the numbers in the
top-left corner.
Across: 1 No strings, 8 Elite,
9 Horrify, 10 Column, 11 Deaden,
12 In effect, 15 Skin-deep,
18 On edge, 20 Design, 21 Killjoy,
22 Wince, 23 Dramatist.
Down: 2 Ozone, 3 Tirade,
4 Infinite, 5 Set off, 6 Minutes,
7 Reinstate, 11 Dress down,
13 Emporium, 14 Missing,
16 Dogged, 17 Pellet, 19 Gross.
Across: 1 Roughcast, 8 Hello,
9 Several, 10 Hinges, 11 Candid,
12 Left Bank, 15 Preserve,
18 Earwig, 20 Italic, 21 Complex,
22 Noise, 23 Death rate.
Down: 2 Opera, 3 Greedy,
4 Chandler, 5 Thrift, 6 Elegiac,
7 Forsaking, 11 Compliant,
13 Free port, 14 Gelatin, 16 Exited,
17 Proper, 19 Inert.
Across
1 Inconvenient (8)
5 Norwegian capital (4)
9 Substantial (5)
10 North American open
grassland (7)
11 Mature (5-7)
13 Venue of 2004
Olympics (6)
14 Middle East kingdom (6)
17 Have some prospect
of success (5,1,6)
20 Flourish of trumpets (7)
21 Senseless (5)
22 Soothe (4)
23 Noteworthiness (8)
Down
1 Threatening (4)
2 By means of (7)
3 Engage in business
scheming (5,3,4)
4 To fleece (3,3)
6 Small shoot (5)
7 Exaggerated (8)
8 To dupe (4,3,1,4)
12 Opera by Wagner (8)
15 Lay down the law (7)
16 Vet for loyalty,
reliability etc. (6)
18 Declare invalid (5)
19 Immediately adjacent (4)
Across
1 Girl straddles a horse
belonging to James (8)
5 Look for a sign that a
chick has hatched (4)
9 Its boring for a doctor
being unwell (5)
10 Show sluggishness; i.e.
train sloppily (7)
11 Honest player but not
a grand one (7,5)
13 Was shifty and naturally
guarded (6)
14 Its still produced in
Ireland though
illegally (6)
17 Characteristic
chance in store for
the theatre (8,4)
20 It gives pain to the
listener (7)
21 Former French island
Napoleon went
into (5)
22 One four-letter word in
place of another? (4)
23 Apprentices the boss
sent out (8)
Down
1 One may get belted
taking part in this
sport (4)
2 A politician shouted about
being inhibited (7)
3 Its shown by one
looking for scraps (12)
4 Land set on fire? (6)
6 A minor player
makes more (5)
7 Army units also included
in schemes (8)
8 Remain calm and avoid
being executed (4,4,4)
12 The lambs tender (8)
15 Noise or disturbance
can be wearing (7)
16 A road tester perhaps (6)
18 Horrors concealed
in the gorse (5)
19 Elizabeth; a superior
lady deserted by a
sailor (4)
1 2 3 4 5 6 7
8
9 10
11
12
13 14 15
16
17 18
19
20 21
22 23
CRYPTIC
QUICK
Yesterdays Cryptic
CHALLENGE CROSSWORD
Yesterdays Quick
KENKEN
Daily horoscopes at http://tgam.ca/horoscopes
M
y family bought the cottage
and cabin in 1967, paying
the grand sum of $3,500 for both
properties. There was no electric-
ity or plumbing: We literally had
to fetch a pail of water from the
lake for drinking and dishes, pur-
ifying it with a few drops of
iodine.
We would park at the old log
cabin, part of a logging camp con-
structed many decades earlier to
harvest timber left by a forest fire.
Scattered throughout the forest,
you could still see the decaying,
charred stumps of massive trees
that once dominated the area.
From the cabin we would walk
along a meandering stream,
where vibrantly coloured damsel
and dragonflies flitted among
arrowheads and cattails, darting
in and out of beams of light pene-
trating the forest canopy. After
about a quarter mile wed come
to the cottage, situated at the end
of a spring-fed lake populated
with natural lake trout. I recall
one summer in the early 1970s
when men from the Department
of Lands and Forests visited to tell
us they had trapped a 25-pound
laker while doing a study with
nets.
The cottage next to ours was
decrepit and abandoned, the one
next to it was rarely used, and the
third abode at the far end of the
lake was within a bay and out of
sight.
It was paradise for my parents
and the five kids they claimed as
theirs, a wondrous natural haven
surrounded by thousands upon
thousands of acres of Crown land
that we largely had to ourselves.
Just after the aforementioned
stream exited this Elysian lake, it
cascaded down a small falls
where a deep pool formed beside
the path. It was here that in the
spring large numbers of suckers
would congregate, halted tempo-
rarily in their ancient instinctive
migration to the lake above.
Every spring, local people
would also park at our cabin and,
carrying spears reminiscent of
Poseidons trident along with an
assortment of buckets, descend
upon the pool to harvest this
annual source of protein for pick-
ling.
It was obviously a highly social
event, and from the cottage we
would hear occasional sounds of
jubilant shouting in the distinc-
tive Ottawa Valley lilt, combined
with much splashing and festivi-
ty.
The fishers preferred to keep to
themselves, and perhaps it was
this aloofness despite being on
our property that caused me as a
boy of about 10 to comment to
my father that they were tres-
passing and imposing upon our
privacy why didnt we prevent
it?
My father explained in the
manner he used when broaching
a serious subject that, while tech-
nically we may have that right,
the folks visiting our land had
been doing so for generations.
Long before our cottage had been
segregated as private property,
they had come, and in his opin-
ion it was their right and not a
privilege to engage in the harvest,
which for many was a much-an-
ticipated source of food. He
admonished me to always show
them respect, and said I should in
fact welcome them.
My mother interjected that in
her farming community, back in
New Brunswick, it had been com-
mon knowledge that a treaty
signed in the 1700s allowed Mic-
mac people to enter private prop-
erty to harvest any ash and birch
trees they wanted for construc-
tion of their baskets, canoes,
snowshoes and such. In the 1940s
a judge ignored this treaty,
moved the goalposts and
claimed it was illegal, she said.
Everyone knew this was unjust,
for the knowledge of the right
had been passed down genera-
tionally, not only through the
Micmac but also by the original
settlers. The judgment was uni-
versally ignored, and the Micmac
continued their cultural practice.
The sucker run was a similar
circumstance, my mother said,
and she expected us kids to
embrace this value.
I came to look forward to the
locals sucker harvest as a fore-
shadower of spring, and we never
had any issues with their efforts. I
eventually came to know a few of
them as friends, and folks of
more sterling character one could
not find.
As most things do, the place
changed as the years passed. The
lake trout, after residing there for
millennia after the glaciers
retreated, were fished out and the
lake subsequently stocked with
hatchery-reared hybrid splake.
Highly sought after by an ever-in-
creasing multitude of fishers, the
splake changed the lake from a
seldom-visited refuge to a com-
mon destination throughout all
seasons, eroding the solitude we
had cherished so.
The cottage next door was reha-
bilitated and occupied by folks
who, to put it politely, had values
that were the antithesis of John
Muirs ideals. The annual ritual of
the sucker run became less and
less frequented, until finally no
one came.
We eventually sold the cottage
and cabin, our parents having
passed away and we kids moving
to homes out of viable geograph-
ic range. Sentiment finally suc-
cumbed to economics and
changed circumstances.
But not a spring goes by that at
a certain time, just after the ice
has retreated to the middle of the
lakes and finally disappeared,
and trilliums and trout lily speck-
le the forest floor, I dont fondly
recall that other harbinger of
spring and wonder: Are the suck-
ers running?
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Rob Walker lives in Apsley, Ont.
FACTS & ARGUMENTS 9 BY ROB WALKER
Rites of a Northern spring
When trilliums and trout lily speckle the forest floor, I dream of the annual sucker run
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CELIA KRAMPIEN FOR THE GLOBE AND MAIL
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Submissions:
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We want your personal stories.
See the guidelines on our website
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Lets face it, strange things happen when the Boston
Bruins play the Montreal Canadiens in the playoffs.
Maybe its because the old rivals have faced each
other so often. Maybe its something in the magnetic
fields; small men play big, grizzled playoff perform-
ers can shrink perceptibly, and the better team
might end up on the losing end.
Perhaps a Vezina-nominated goalie will even give
up a dodgy goal in the third period that is celebrated
boisterously enough by the Habs to be heard over
the crowd at the TD Garden.
The point is the usual hockey rules seldom apply.
As it is, the Canadiens are going on to the Eastern
Conference final, and the regular season champion
Bruins are not. The Habs won 3-1.
Perhaps now the Carey Price doubters can revise
their opinion of the Team Canada goalie, who is now
5-0 in elimination games this season (if you count
the Olympics), where he has saved 125 of 127 shots
and given up all of two goals.
On this evidence, the New York Rangers, who will
be the Canadiens conference-final opponents, will
have a lot of work to do to beat Price and the plucky
Habs. Dreams of the first Stanley Cup final in Mon-
treal since 1993 remain still very much alive.
This game also showed once again that you dont
have to be physical behemoths to control a game
played on the edge of a blade; agility and cunning
can be enough.
Hockey, Page 2
Carey Price of the Montreal
Canadiens makes a save on Zdeno
Chara of the Bruins during Game 7
in Boston on Wednesday night.
WINSLOW TOWNSON/USA TODAY SPORTS
STANLEY CUP PLAYOFFS CANADIENS 3, BRUINS 1 (MONTREAL WINS SERIES 4-3)
PRICE POINTS
Smaller Habs become giant-killers in Boston
as Montreal earns a conference final berth against Rangers.
And Price silences the last of his critics with another huge game under pressure
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SEAN GORDON BOSTON
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A
Globe Sports
THURSDAY, MAY 15, 2014 SECTI ON S
EDITOR: SHAWNA RICHER
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Connect with us: @GlobeHockey facebook.com/theglobeandmail
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
W
hen Brendan Shanahan was 16 years old and
leaving home for the first time, he was
asked to fill out a form listing, amongst other
things, his hometown.
This required a family meeting.
I went to my brothers and said, Yknow,
should I and here Shanahan screws himself
into a posture of extreme discomfort should
I say Toronto?
A small, comedic pause. Shanahan clasps his
hands in pre-penitence.
And my brothers said, Eff that. Youre from
Mimico.
Throughout his long career, Shanahans hockey
cards listed Mimico as his birthplace, though the
neighbourhood at the west-end of Toronto proper
is not a borough or a town or any sort of place at
all. Its a state of mind.
Shanahan was once asked by a friend in New
York to explain Mimico, and the only point of re-
ference he could come up with was Hells Kitch-
en. Thats an apt parallel. If you want to
understand Shanahans view of life, Mimico is the
key.
It is speaking in non-specific ethnic terms
the north-of-49 nexus of Irish Omerta.
Mimico is The Fight Club of Toronto neighbour-
hoods. No shame in losing, as long as you went
down swinging. And for Gods sakes, keep your-
self to yourself. Nobody needs to know your busi-
ness.
Shanahan hasnt spent a significant amount of
time in his birthplace for 15 years, but he still
talks about it in those exceptional terms.
Toronto has changed a lot, Shanahan says.
Mimico hasnt changed at all.
Neither, it seems, has he.
Kelly, Page 3
NHL LEAFS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Shanahan
in a Mimico
state of mind
CATHAL KELLY
ckelly@globeandmail.com
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
TORONTO
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Olympic silver medalist
Patrick Chan
is enjoying life away
from competition.
PAGE 4
FIGURE SKATING
Chan undecided
about future
S2 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
POOCH CAF
BETTY
CORNERED BLISS SPEED BUMP BIZARRO
COMICS
NHL PLAYOFFS MLB
Division Finals
(Best-of-7 series)
All times Eastern
EASTERN CONFERENCE
ATLANTIC DIVISION
BOSTON (1) VS. MONTREAL (3)
(Montreal wins 4-3)
Wednesdays result
Montreal 3 Boston 1
METROPOLITAN DIVISION
PITTSBURGH (1) V. NY RANGERS (2)
(New York wins 4-3)
Tuesdays result
N.Y. Rangers 2 Pittsburgh 1
WESTERN CONFERENCE
CENTRAL DIVISION
CHICAGO (3) V. MINNESOTA (WC)
(Chicago wins 4-2)
Tuesdays result
Chicago 2 Minnesota 1 (OT)
PACIFIC DIVISION
ANAHEIM (1) VS. LOS ANGELES (3)
(Anaheim leads 3-2)
Wednesdays result
Anaheim at Los Angeles
Fridays game
x-Los Angeles at Anaheim, 9 p.m.
x if necessary
NATIONAL LEAGUE
EAST DIVISION
W L Pct GB
Atlanta 22 17 .564
Washington 21 19 .525 1
1
/2
Miami 20 20 .500 2
1
/2
N.Y. Mets 19 20 .487 3
Philadelphia 17 21 .447 4
1
/2
CENTRAL DIVISION
W L Pct GB
Milwaukee 25 14 .641
St. Louis 20 20 .500 5
1
/2
Cincinnati 17 20 .459 7
Pittsburgh 16 22 .421 8
1
/2
Chicago Cubs 13 25 .342 11
1
/2
WEST DIVISION
W L Pct GB
San Francisco 26 15 .634
Colorado 23 19 .548 3
1
/2
L.A. Dodgers 22 19 .537 4
San Diego 19 21 .475 6
1
/2
Arizona 16 27 .372 11
Wednesdays results
San Francisco 10 Atlanta 4
L.A. Angels 3 Philadelphia 0
Washington 5 Arizona 1
N.Y. Yankees 4 N.Y. Mets 0
Chicago Cubs at St. Louis, ppd.
San Diego at Cincinnati, ppd.
Pittsburgh at Milwaukee
Miami at L.A. Dodgers
Tuesdays results
St. Louis 4 Chi. Cubs 3 (12 inn.)
L.A. Angels 4 Philadelphia 3
Arizona 3 Washington 1
San Diego 2 Cincinnati 1
Milwaukee 5 Pittsburgh 2
Atlanta 5 San Francisco 0
L.A. Dodgers 7 Miami 1
Thursdays games
All times Eastern
San Diego (Ross 4-3) at Cincin-
nati (Simon 4-2), 12:35 p.m.
Pittsburgh (Rodriguez 0-2) at
Milwaukee (Gallardo 2-2), 1:10 pm.
Chicago Cubs (Samardzija 0-3)
at St. Louis (Lynn 4-2), 1:45 p.m.
N.Y. Yankees (Whitley 0-0) at
N.Y. Mets (Degrom 0-0), 7:10 p.m.
Miami (Eovaldi 2-1) at San Fran-
cisco (Cain 0-3), 10:15 p.m.
AMERICAN LEAGUE
EAST DIVISION
W L Pct GB
Baltimore 20 18 .526
N.Y. Yankees 20 19 .513
1
/2
Toronto 20 20 .500 1
Boston 19 19 .500 1
Tampa Bay 18 23 .439 3
1
/2
CENTRAL DIVISION
W L Pct GB
Detroit 24 12 .667
Kansas City 20 19 .513 5
1
/2
Minnesota 18 19 .486 6
1
/2
Chi. White Sox 20 22 .476 7
Cleveland 18 21 .462 7
1
/2
WEST DIVISION
W L Pct GB
Oakland 25 16 .610
L.A. Angels 21 18 .538 3
Seattle 20 20 .500 4
1
/2
Texas 20 20 .500 4
1
/2
Houston 13 27 .325 11
1
/2
Wednesdays results
Tampa Bay 2 Seattle 0
Chicago White Sox 4 Oakland 2
Kansas City 3 Colorado 2
Detroit 7 Baltimore 5
Cleveland at Toronto
Boston at Minnesota
Texas at Houston
Tuesdays results
Toronto 5 Cleveland 4
Minnesota 8 Boston 6
N.Y. Mets 12 N.Y. Yankees 7
Oakland 11 Chicago White Sox 0
Tampa Bay 2 Seattle 1
Kansas City 5 Colorado 1
Houston 8 Texas 0
Detroit 4 Baltimore 1
Thursdays games
All times Eastern
Boston (Buchholz 2-3) at Minne-
sota (Hughes 4-1), 1:10 p.m.
Cleveland (Salazar 1-3) at
Toronto (Happ 1-1), 7:07 p.m.
Baltimore (Chen 4-2) at Kansas
City (Ventura 2-2), 8:10 p.m.
Tampa Bay (Bedard 2-1) at L.A.
Angels (Skaggs 3-1), 10:05 p.m.
ON TELEVISION NBA PLAYOFFS
SOCCER
Conference Seminals
(Best-of-7 series)
All times Eastern
EASTERN CONFERENCE
INDIANA (1) VS. WASHINGTON (5)
(Indiana leads 3-2)
Tuesdays result
Washington 102 Indiana 79
Thursdays game
Indiana at Washington, 8 p.m.
MIAMI (2) VS. BROOKLYN (6)
(Miami leads 3-1)
Wednesdays result
Brooklyn at Miami
Fridays game
x-Miami at Brooklyn, 8 p.m.
WESTERN CONFERENCE
SAN ANTONIO (1) V. PORTLAND (5)
(San Antonio leads 3-1)
Wednesdays result
Portland at San Antonio
OKLA. CITY (2) V. L.A. CLIPPERS (3)
(Oklahoma City leads 3-2)
Tuesdays result
Oklahoma City 105 L.A. Clippers 104
Thursdays game
Okla. City at L.A. Clippers, 8 p.m.
x if necessary
THURSDAY
All times Eastern
BASEBALL
Boston at Minnesota, SN On-
tario, East, West and Pacific, 1 pm
Cleveland at Toronto, SN On-
tario, East, West and Pacific, 7 pm
BASKETBALL
NBA Draft Combine, TSN2, 1 pm
Indiana at Washington, TSN, 8 pm
Oklahoma City at LA Clippers,
TSN, 10:30 pm
CRICKET
Rajasthan Royals vs Delhi Dare-
devils, SN World, 10:15 am
CYCLING
Giro dItalia: Stage 6, SN 1, 8:30 am
GOLF
European Tour Spanish Open,
Golf Channel, 5:30 am
Champions Tour Regions Trad-
ition, Golf Channel, 12:30 pm
PGA Byron Nelson Champion-
ship, Golf Channel, 3 pm
HOCKEY
Canada v Denmark, TSN, 9:30 am
USA vs. Latvia, TSN2, 9:30 am
MLS
Wednesdays result
Philadelphia at Kansas City
AMWAY CANADIAN
CHAMPIONSHIP
All times Eastern
SEMIFINALS
(2-game, total-goals series)
VANCOUVER VS. TORONTO
(Toronto leads 2-1)
Wednesdays result
Toronto at Vancouver
MONTREAL VS. EDMONTON (NASL)
(Edmonton leads 2-1)
Wednesdays result
Edmonton at Montreal
IIHF
Mens World
Championship
At Minsk, Belarus
PRELIMINARY ROUND
Wednesdays results
Czech Republic 2 Italy 0
Russia 7 Kazakhstan 2
Slovakia 5 Norway 2
Switzerland 3 Germany 2
Thursdays games
All times Eastern
Canada vs. Denmark, 9:45 a.m.
U.S. vs. Latvia, 9:45 a.m.
Sweden vs. France, 1:45 p.m.
Finland vs. Belarus, 1:45 p.m.
HOCKEY
SCORING LEADERS
G A PT
Kopitar, LA 4 12 16
Malkin, Pgh 6 8 14
Getzlaf, Ana 4 10 14
Parise, Min 4 10 14
Gaborik, LA 8 4 12
Subban, Mon 4 8 12
Seabrook, Chi 2 9 11
Hossa, Chi 2 9 11
Jokinen, Pgh 7 3 10
Kane, Chi 6 4 10
Toews, Chi 5 5 10
Stastny, Col 5 5 10
Perry, Ana 3 7 10
MacKinnon, Col 2 8 10
Bickell, Chi 6 3 9
Richards, NYR 4 5 9
Eller, Mon 4 5 9
Carter, LA 3 6 9
Wednesdays games not included
TENNIS
BLUE JAYS STATISTICS
BATTERS AB R H HR RBI AVG
Thole 40 5 15 0 3 .375
Cabrera 167 27 55 6 17 .329
Tolleson 22 3 7 0 2 .318
Lind 52 11 16 2 11 .308
Bautista 144 33 43 10 28 .299
Francisco 75 15 22 6 16 .293
Izturis 35 3 10 0 1 .286
Navarro 116 13 32 1 16 .276
Encarnacion 155 22 38 6 27 .245
Lawrie 124 15 29 7 23 .234
Rasmus 135 19 30 9 19 .222
Reyes 93 20 20 3 9 .215
Pillar 3 0 0 0 0 .000
PITCHERS W L SV IP SO ERA
Janssen 0 0 1 2.0 1 0.00
Buehrle 7 1 0 53.0 31 2.04
Redmond 0 3 0 23.2 17 2.66
Delabar 2 0 0 17.0 15 3.18
Loup 1 1 2 18.1 14 3.93
Hutchison 1 3 0 45.1 49 4.37
Dickey 4 3 0 53.2 47 4.53
Cecil 0 3 2 17.2 27 4.58
Happ 1 1 0 11.2 10 4.63
McGowan 2 1 0 35.0 22 4.63
Morrow 1 2 0 27.1 26 5.93
Rogers 0 0 0 18.1 19 6.38
Jenkins 0 0 0 3.0 2 9.00
Santos 0 2 5 12.0 20 9.00
Stroman 1 0 0 5.0 4 9.00
Wednesdays game not included
WTA-ATP
Italian Open
At Rome, Italy
Womens SinglesSecond Rd.
>>Serena Williams (1), U.S., def.
Andrea Petkovic, Germ., 6-2, 6-2.
>>Agnieszka Radwanska (3), Pol.,
def. Paula Ormaechea, Arg., 6-3, 6-2.
>>Simona Halep (4), Rom., def.
Madison Keys, U.S., 5-7, 6-0, 6-1.
>>Jelena Jankovic (6), Serb., def. Sve-
tlana Kuznetsova, Rus., 6-2, 4-0. (ret.).
>>Maria Sharapova (8), Rus.,
def. Monica Puig, P. Rico, 6-3, 7-5.
>>Sara Errani (10), Ita., def. Ekat-
erina Makarova, Rus., 6-2, 6-3.
>>Ana Ivanovic (11), Serbia, def.
Alize Cornet, France, 7-6 (7-1), 7-5.
>>Flavia Pennetta (12), Italy, def.
Belinda Bencic, Swi., 6-2, 2-6, 6-3.
>>Carla S.Navarro (13), Spn., def.
Venus Williams, U.S., 6-4, 6-2.
Mens Singles Second Rd.
>>Rafael Nadal (1), Spn., def. Gilles
Simon, Fran., 7-6 (7-1), 6-7 (4-7), 6-2.
>>Jeremy Chardy, Fra., def. Roger
Federer (4), Swi., 1-6, 6-3, 7-6 (8-6).
>>Tomas Berdych (6), Cze., def.
Dmitry Tursunov, Rus., 6-4, 6-3.
>>Andy Murray (7), Scot., def.
Marcel Granollers, Spain, 6-2, 7-5.
>>Jo-W. Tsonga (11), Fra., def. Kevin
Anderson, S. Africa, 7-6 (16-14), 7-6 (7-5).
>>Grigor Dimitrov (12), Bulg., def.
Ivo Karlovic, Croatia, 7-6 (7-3), 6-4.
>>Mikhail Youzhny (14), Rus., def.
Andrey Golubev, Kaz., 7-5, 4-1. (ret.).
>>Tommy Haas (15), Germ., def.
Igor Sijsling, Neth., 7-6 (8-6), 6-1.
Mens Doubles Second Rd.
>>Daniel Nestor (6), Toronto, &
Nenad Zimonjic, Serb., def. Kevin
Anderson, S.Afr. & Jurgen Mel-
zer, Austria, 3-6, 7-6 (7-4), 14-12.
CANADIENS 3, BRUINS 1
First Period
1. Montreal, Weise 3 (Briere,
Prust) 2:18.
Penalties Marchand Bos (goal-
tender interference) 6:18; Chara
Bos, Pacioretty Mon (holding)
9:27; Chara Bos (holding) 14:14.
Second Period
2. Montreal, Pacioretty 3 (Deshar-
nais, Gallagher) 10:22.
3. Boston, Iginla 5 (Krug, Krejci)
17:58 (pp).
Penalties Marchand Bos
(unsportsmanlike conduct) 0:07;
Eller Mon (interference) 11:47;
Pacioretty Mon (holding) 16:05;
Krejci Bos (holding) 19:14.
Third Period
4. Montreal, Briere 2 (Gallagher,
Beaulieu) 17:07 (pp).
Penalties Boychuk Bos
(interference) 15:29; Markov Mon
(interference) 17:59.
Shots on goal
Montreal 6 8 519
Boston 9 13 931
Goal Montreal: Price (W, 8-3).
Boston: Rask (L, 7-5).
Power plays (goal-chances)
Montreal: 1-5; Boston: 1-3.
Attendance 17,565.
GLOBE SPORTS
Skill helps too.
The Habs Daniel Brire,
who is five-foot-10, has some of
that, and he used it to great effect
in setting up the opening goal
and planting the final dagger on
a power-play late in the third,
banking a shot off the mammoth
defenceman Zdeno Charas left
skate and past Tuukka Rask.
The big Bruin captain had a
miserable night, the little Cana-
diens did not.
Or take David Desharnais: List-
ed at five-foot-seven in the Cana-
diens game program, he grabbed
Game 7 of the second-round
series with the Boston Bruins by
the scruff off the neck in the sec-
ond period.
On one sequence, Andrei Mar-
kov kept a puck alive at the left
point in the Boston zone, and
Desharnais used his stick and
tight turning radius to outwit a
pair of Bruins, strip the puck and
set in on Rask.
The native of Laurier-Station,
Que., has a quasi-telepathic un-
derstanding with close friend and
linemate Max Pacioretty, so he
didnt even really need to look to
know where hed be before slid-
ing a hard pass that the latter
one-timed into the top of the net.
It was one of the rare occasions
Boston coach Claude Julien
wasnt able to match his top
defensive pair of Chara and Dou-
gie Hamilton against Montreals
top line, and it served as an illus-
tration of why its important for
him to do so.
A few shifts later, as the Bruins
cranked up the pressure after
drawing to within a goal, Deshar-
nais controlled the puck in the
Boston end, by himself, for nearly
an entire shift.
He twisted along the boards; he
turned; he held defenders off
with his hips. It was merely one
chapter in a towering perform-
ance. With Montreal on the pow-
er-play at the start of the third,
Desharnais fought Chara to a
draw in a puck battle near the
Boston net and then, at mid-peri-
od, he managed to emerge with
the puck at the opposing blue
line despite three Bruins being
on the scene.
Going into Wednesdays game,
the team scoring first had gone
21-1 in these playoffs; the instruc-
tion written in boldface on the
whiteboards in both rooms was
to hit the gas from the start.
After a Boston offside a couple
of minutes into the game, Brire
and Bostons Gregory Campbell
scrambled a neutral zone draw.
The puck came to Markov, who
stepped over the red line and
fired a puck off the end boards.
Montreals Brandon Prust, inef-
fective in the series until Game 6,
was first on the scene, fought off
Campbells check, and passed it
to Brire, whose instant cross-ice
pass was poked in by an
unchecked Dale Weise.
Brire and Desharnais werent
the only smaller players who had
an influence on this game.
The five-foot-nine Brendan Gal-
lagher embraces the grittier arts
and was mixing it up with Chara
who is a foot taller all night.
In the first period, he fought
through a couple of sticks to get
to Chara after a whistle, skirmish-
ing lightly with him. In the third,
he gave Chara a sneaky little trip
as the teams lined up for a face-
off deep in the Boston end.
Small mistakes can sometimes
cause large problems, and when
Brian Gionta couldnt convert a
pair of chances to clear the zone
in traffic near the Bruins bench,
the puck bounced to the middle
where Torey Krug gathered the
puck, waited for David Krejci to
draw Habs defender Mike Weaver
wide, and shot to a spot where
Jarome Iginla could tip it past
Price.
The netminder briefly protest-
ed that Iginlas stick was above
the crossbar, but only half-heart-
edly.
Boston turned up the pressure
after the goal, but it wouldnt be
enough.
FROM PAGE 1
Hockey: A miserable night for Chara as the regular-season champion Bruins ousted
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Canadiens fans at Montreals Bell Centre celebrate the teams third goal against the Boston in a 3-1 victory in Game 7. RYAN REMIORZ/THE CANADIAN PRESS
9
THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A S3 GLOBE SPORTS
HOCKEY
T
he press release arrived by
e-mail at 1:21 p.m. Wednes-
day: The Pittsburgh Penguins
will hold their final media avail-
ability of the season Thursday,
May 15 from 10:00 a.m. to 11:30
a.m. inside the locker room at
CONSOL Energy Center.
These sessions are commonly
known around the NHL as break-
up day, when teams that fail to
make the playoffs or get elimi-
nated before the Stanley Cup
final gather in their dressing
rooms for a last session with the
media before heading into their
summers. Usually, the players of-
fer banalities about the disap-
pointing season (the bounces
didnt go our way) with the head
coach perhaps a little more
pointed, questioning the work
ethic for example, but always in
general terms rather than nam-
ing the perceived culprits.
But this one should be far
more interesting than most. This
promises to be a real break-up
day, with head coach Dan Bylsma
almost certainly making his final
appearance in front of the Pitts-
burgh media as Penguins head
coach. The same can be said for
any number of players save Sid-
ney Crosby and Evgeni Malkin
and maybe even general manag-
er Ray Shero. Those are the con-
sequences when you suffer a
fifth consecutive playoff elimina-
tion at the hands of a lower-
seeded opponent since winning
what was supposed to be the
first of many Stanley Cups in
2009.
Henrik Lundqvist had scarcely
smothered the last scoring
chance of the Penguins on Tues-
day night, propelling the goalten-
der and the New York Rangers
into the Eastern Conference final,
than the long knives came out
on Twitter. John Buccigross of
ESPN tweeted this practically at
the final horn: Source: lots of
dissension in the locker room
during the playoffs towards him
(Blysma). Arguing in meetings,
etc. 99.98% hes gone,
By Wednesday afternoon, Rob
Rossi of the Pittsburgh Tribune-
Review followed up with a devas-
tating report on the newspapers
website. Rossis sources told him
Penguins owners Mario Lemieux
and Ron Burkle were in the sec-
ond of two days of meetings and
want Bylsma fired. Ownership
believed Bylsma lost the dressing
room this season, specifically the
support of franchise centers Sid-
ney Crosby and Evgeni Malkin,
the report said.
Sheros fate was still being
debated at that point but a look
at the would-be dynastys playoff
troubles over the past five years
does not leave much room for an
argument to keep him.
In blowing a 3-1 series lead for
the second time in the past four
years, a team with Crosby, Mal-
kin, James Neal and Kris Letang
could score only three goals on
the Rangers in the last three
games of the playoff series. A
year earlier, the Penguins star-
powered offence also stalled
against the Boston Bruins in a
sweep in the conference final.
Some of that is coaching, of
course, as Bylsma appeared
flummoxed when the Bruins and
then the Blue Jackets and Ran-
gers cranked up the hard hockey
good teams play in the postsea-
son. Much like he was as head
coach of the U.S. mens team at
the Sochi Olympics, when Mike
Babcock had the Canadians lock
down the speedy American for-
wards.
But there is plenty of blame to
spread around here. While you
may or may not believe Crosbys
protests that his one goal and
nine points in 13 playoff games
were not because he was hiding
an injury, the fact is first the Blue
Jackets and then the Rangers
subjected him to a merciless
pounding. So did the Bruins in
2013. But with defenceman
Brooks Orpik injured, the Pen-
guins had no one inclined to do
anything about it.
More often than not, star
players are shut down in the
playoffs, which means the differ-
ence-makers come from the sup-
porting cast like Bryan Bickell of
the Chicago Blackhawks. This
hasnt happened with the Pen-
guins despite Sheros best efforts.
Shero publicly tied himself to
Bylsma shortly after the 2013
sweep at the hands of the Bruins
by signing the coach to a two-
year contract extension. Then
they decided to stick with goal-
tender Marc-Andr Fleury. That
is why its easy to see an angry
ownership tossing them both
overboard.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Follow me on Twitter:
@dshoalts
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NHL PENGUINS
Pittsburgh expected to say bye bye Bylsma
Head coach expected to face the axe after team eliminated for fifth consecutive season by a lower-seeded opponent
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DAVID SHOALTS
dshoalts@globeandmail.com
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Penguins forward Brandon Sutter leans over the boards as time runs out in Game 7 of Pittsburghs playoff series against the Rangers on Tuesday. AP
B
rendan Shanahan didnt
mince his words.
After a month of carefully ana-
lyzing the Toronto Maple Leafs
and speaking with just about
everyone in the organization, the
NHL disciplinarian turned team
president revealed he now has
some firm ideas when it comes
to what the troubled franchise
needs and what it doesnt.
And he firmly believes he can
make use of at least some of
whats there, rather than tearing
the roster down to the studs as
part of a full-scale rebuild around
youth and draft picks.
This is not a gut job, Shana-
han told The Globe and Mail as
part of a wide-ranging series of
interviews he did with several
Toronto media outlets on
Wednesday. There are good piec-
es. I think the team is maybe not
as good as some of their best
months and not as bad as some
of their worst months. But there
are definitely pieces Im comfort-
able with.
One of those appears to be cap-
tain Dion Phaneuf.
The defencemans name has
been circling in trade rumours of
late and theres been water-cool-
er talk about a change in the cap-
taincy, but Shanahan said what
he actually saw in Phaneufs
struggles late in the year was
actually someone who cared a
great deal and was trying to do
too much.
The long-time former player
and Hall of Famer Shanahan
was a captain briefly for the Hart-
ford Whalers midway through his
career added that he believes
he can support Phaneuf and help
him shoulder the load.
First by offering some advice on
how to handle the leadership
role.
Secondarily, he can acquire him
some help.
No, not at all, Shanahan said
when asked about contemplating
a change with the Leafs captain-
cy. As a matter of fact, I hope to
help Dion be a better captain.
Hes got a lot of want and desire.
[Hes] somebody that I can
meet with, consult with, give
some of my experience to. I
would like to enhance his leader-
ship qualities. And also surround
him with more leaders.
Shanahans most compelling
comments, meanwhile, were on
the teams controversial coaching
changes, which involved the
Leafs firing all three assistants
but giving embattled head coach
Randy Carlyle a contract exten-
sion last week.
Shanahan explained that the
decision to turf the assistants but
not Carlyle was born out of leng-
thy conversations with both gen-
eral manager Dave Nonis and the
Leafs players, some of whom ex-
pressed to him frustration with
the system the team was playing.
What he determined more than
anything the past few weeks was
that the status quo couldnt con-
tinue and that the Leafs will need
to play a dramatically different
style next fall.
A lot of the onus for that will
fall on the yet-to-be-hired new
assistant coaches and on Carlyle
reinventing himself.
I agree with many of the fans
that to be outshot that often,
theres something wrong, Sha-
nahan said of the Leafs terrible
defensive track record, which saw
them concede a league-high 36
shots per game. There are some
things about the system that
were identified where the mes-
sage wasnt getting through. That
to me will be an important
adjustment that needs to be
made.
I think that Randy is a talent-
ed coach and I think he like a
lot of our players has to look in
the mirror and figure out how
they can all come back and be
better. I think thats part of any
winning organization.
It was far from a ringing en-
dorsement, but given where the
Leafs are coming from, thats
hardly what was called for.
Instead, Shanahan signalled
that the clock has started ticking,
and that everyone including
himself will be accountable for
the results.
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Follow me on Twitter:
@mirtle
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NHL LEAFS
Dont burn the boats: Shanahan stays the course
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Leafs president Brendan Shanahan has no intention of rebuilding the roster.
There are good pieces on the team, he said. FRED LUM/THE GLOBE AND MAIL
JAMES MIRTLE
jmirtle@globeandmail.com
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On Wednesday, exactly one
month into his new job,
Shanahan went to the Buglers
of the Apocalypse who cover
the team. He spent about an
hour with each of the four daily
papers explaining in broad,
learned terms why he wasnt
going to explain anything to
them.
Upon arrival, we knew nothing
about the Shanahan style, or
whether he is interested in any
particular style at all. We still
dont.
Asked which team he current-
ly likes most, Shanahan said,
Whichever one wins the Cup.
We do know that he is not an
admirer of the Leafs compulsive
and often disastrous habit of
oversharing.
I think there were some
unfortunate remarks made over
the course of the season, Sha-
nahan says. One gets the strong
sense that the word unfortu-
nate is superfluous in that sen-
tence. Shanahan is not a great
fan of remarks, full stop.
In turn, Im a great fan of
body language as the truest
thing anyone says to you. Watch
a man sit down, and you know
where you stand with him.
Shanahan maintains the phy-
sique of his playing days. He is
an imposing specimen. When he
sits, he angles himself away
from the person hes addressing,
leg crossed, but hands still ent-
wined in front of him. His body
is at odds with itself. His post-
ure says, I dont want to intimi-
date you. But I could. It is the
affect of a man who expects to
be the most formidable in any
room he enters.
If his frame is speaking to you,
his words are not.
What I gathered from those 45
minutes: The Leafs may look
very different before the start of
next season. Also, they may not.
What could be improved? Ev-
erything. Does it need to be?
Not necessarily. Also: Yes.
Is there a plan? Of course.
Whats the plan? Next question.
This is the most heartening
sign yet about the Shanahan
Era.
(Note: Taken alongside the re-
upping of coach Randy Carlyle,
it is also only the second sign of
the Shanahan Era.) There is one
sort of organization that should
talk a lot in sports one thats
winning.
Buoyed through their short
window of success by oversized
presences like Pat Burns and Pat
Quinn, the Leafs got used to
saying too much.
Coaches like Paul Maurice and
Ron Wilson never said a bunch,
but everything they did served
as a misplaced arrow. The
media were able to pull it out of
a nearby tree trunk and then
stab them with it until they
died.
Brian Burke built his public-
speaking approach in winning
organizations say many things,
and loudly. The same line thats
witty on a Cup winner is profes-
sional suicide on a loser.
When someone in our meet-
ing mentioned Randy Carlyles
confusion about the problems
that beset his team, Shanahan
jumped in to correct him.
Mind boggling, he said, refer-
encing Carlyles ill-chosen go-to
term.
We left the day no wiser about
what route Shanahan plans to
take, and with no expectation
things will become clear until
theyve already happened.
This is alarmingly prudent and
judicious given the landscape of
the market, where every deci-
sion taken by the Leafs is wrong
because it was taken by the
Leafs.
Thats the lesson of Mimico
(and every other sensible place)
that the guy doing all the talk-
ing before the fight starts is the
one whos going to lose.
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Follow me on Twitter:
@cathalkelly
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FROM PAGE 1
Kelly: President no fan of Leafs compulsive and often disastrous habit of oversharing
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9
S4 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
W
hat Patrick Chan wants to
do is go backcountry skiing.
And surf. And drive race cars.
And golf.
Doing things that a guy wants
to do, a 23-year-old guy wants to
do, said the star figure skater,
who won two silvers but fell
short of gold at the Winter
Olympics in Sochi, Russia.
What people want Patrick Chan
to do is return to the ice, to get
back in the severe grind of train-
ing and competitions, to skate
and aim for a moment four years
away.
The lure is tempting, almost
addictive. Chan, after the searing
pressure of Sochi, knew he had to
decompress, get away, sit on a
couch. He decided to skip the
world championships but watch-
ing Japans Yuzuru Hanyu, who
beat Chan for gold in Sochi, win
the world title grated. It had been
Chans podium each of the pre-
vious three years. It was hard to
watch someone else stand there.
But as much as Chan is compel-
led back toward the ice, he is
comfortable to say, for now, no
thanks. The pain of coming so
close to Olympic gold has faded.
He takes pride in his two silvers,
for mens singles and the team
event. He has found respite tour-
ing with Stars on Ice, the travel-
ling caravan of elite skaters that
has visited Japan and Canada,
when skating is more good times
and less crucible.
There were, initially, some
sleepless nights, when his mind
couldnt let go of the series of
mistakes that turned a sure gold
into silver, that mid-February Fri-
day night when he could feel it
slipping away on the ice.
He left Sochi at peace, relative-
ly, with his result, having enjoyed
the Olympics and the experience
of the Games after his event was
over. But in the moment, when
gold was there for him to seize,
he cracked. It is not an experi-
ence he is in a hurry to repeat.
I need a mental break, said
Chan, speaking Wednesday
morning in Vancouver after a vis-
it to promote sponsor Aspac De-
velopments Ltd.
The pressure, that moment I
spent on the ice by myself at the
Olympics was pretty daunting
and pretty scary. Now I have to
ask myself if I can do that again
and what do I need to do to im-
prove my mental toughness, so
that the next time I step on that
kind of stage I can be comfort-
able skating in those circum-
stances.
What he knows for sure is he
wont compete this fall in the
annual grand prix skating season.
He might skate in the Canadian
national championships in Janu-
ary and thereafter the world
championships in Shanghai. But
Chan is quick to stamp an aste-
risk on the sketch outline.
Thats all tentative, its not
really for sure.
Letting go is not easy. After he
returned to Canada after Sochi,
he was at an event with fellow
Olympians, including hockey
player Caroline Ouellette. Chan
admitted pangs of jealousy, see-
ing her gold. And he has said that
in his heart he wants another
world title, his fourth.
The 2018 Olympics in South
Korea are a lot further away. A
huge commitment, Chan called
it, and one he has no plans to
make soon.
First, he has to rediscover what
he loves about skates on his feet,
leaping from the ice, spinning at
fantastic speed in the air. Stars
on Ice and possibly more
events this fall has been as
much a way to make some mon-
ey and enjoy time with peers out-
side competition as a chance to
think about how to make skating
work for him, if hes to skate
again. The sport, said Chan, has
become overly rigid, stifling crea-
tive flourish. Hes looking for lit-
tle things that make shows like
Stars on Ice so much more enjoy-
able, and how he might trans-
pose that, effervescent as it
might be, to competition.
I am, Chan said, trying to fig-
ure that out.
FIGURE SKATING
Rest assured, Chan sits back and relaxes
For now, former world champion and Sochi silver medalist is comfortable away from the grind of training and competition
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Patrick Chan will not compete in the fall skating season, but could return for the Canadian national championships in January. JOHN LEHMANN/THE GLOBE AND MAIL
DAVID EBNER VANCOUVER
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The pressure, that moment I
spent on the ice by myself at
the Olympics was pretty
daunting and pretty scary.
Now I have to ask myself if I
can do that again and what
do I need to do to improve
my mental toughness.
Patrick Chan
W
hen Matt Black was a 16-
year-old playing in the On-
tario Varsity Football League,
younger brother Eric was the
teams water boy.
Thats as close as the Blacks
separated by six years have
come to playing together, until
now.
The Toronto Argonauts selected
Eric with the 38th overall pick in
Tuesday nights CFL draft, six
years after they drafted Matt the
latest and most exciting chapter
in the siblings story.
It was crazy. Its hard to talk
about it, Eric said Wednesday.
Its something Ive been working
for and dreaming about since I
watched my brother do it. And to
get drafted to any team, let alone
my hometown, with my brother,
its just a team come true.
Eric, 23, and 29-year-old Matt
met with the media at the Argo-
nauts downtown office on
Wednesday, their first duty
together as teammates. Matt
helped Eric thread a television
mic down his shirt, joking He
cant even dress himself.
The brothers were following the
draft together their parents
Toronto home when Erics name
came up alongside the Argos.
Their mom, Marlane, cried. Dad
Donovan said: Its time to get to
work.
I leapt up Im staying home,
Im staying home, Eric said.
The brothers, who both attend-
ed Torontos Northern Secondary
School, grew up playing numer-
ous sports baseball, soccer, rug-
by, track and field. They took
different paths to the CFL. Matt, a
5-10 safety who was taken 45th
overall by the Argos in 2008,
played college ball at Saginaw Val-
ley State in Michigan. Eric, a
defensive back whos a couple
inches taller than his older broth-
er, played in the CIS at St. Marys
University in Halifax.
But Matt has been instrumental
in Erics development, the young-
er brother said.
Id watch him do everything
and try to emulate him, and hes
set a good path for me, Eric said.
To have my older brother, whos
been teaching me how to handle
myself in life and on the field, be
on the same team as me, its
great.
Matt wiped away a tear as Eric
spoke to reporters.
Ive always wanted to have that
opportunity (to play together),
Matt said. Now the fact that
were going to get to suit up for
the Argos, I think the only person
happier than me is my mom. Its
an awesome dream come true.
Matt began his Argos career on
special teams, but persevered to
become a solid safety with the
team. Eric hopes to do the same.
Matt is the grind story, what a
lot of Canadians wish to be, they
start off on special teams, might
not get to start right away, but you
work your way up, you cut your
teeth and now hes a vet, a contri-
buting member on this team,
Eric said.
Any good feelings between sib-
lings will be put aside during
Argos rookie initiations, the
brothers said laughing.
I dont think hes going to spare
me the rod at all, Eric said.
Added Matt: If anything, his
spears going to be sharper than
everyone elses. Hes going to get
it worse. Ill definitely be calling
him up to sing at rookie camp
nice and early, so hed better have
a good song. If it sucks, hes going
again.
Argonauts GM Jim Barker said
the club knows its getting a solid
person in Eric.
You know a little more about
him because Matt is such a quali-
ty person in the community,
Barker said.
You know coming from that
family, hes going to be similar.
Those kinds of things help. Eric
we know really well because of
Matt, and that helped making the
pick.
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The Canadian Press
CFL ARGONAUTS
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Boatmen draft pick follows
in footsteps of older brother
Argonaut draft pick Eric Black, left, is joined by his brother, and fellow
Argo, Matt in Toronto Wednesday. LORI EWING/THE CANADIAN PRESS
LORI EWING
TORONTO
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W
ally Buono doesnt like the
term backup quarterback
when describing one of his new-
est acquisitions.
The B.C. Lions general manager
and vice-president of football op-
erations made a splash at Tues-
days CFL draft, acquiring
disgruntled pivot Kevin Glenn
from the Ottawa Redblacks for
the fifth overall pick.
The move is significant not only
when taking into account Glenns
past success in the CFL, but also
because Lions starting quarter-
back Travis Lulay is coming off
surgery to his throwing shoulder.
Kevin Glenn is an experienced
quarterback thats won wherever
hes been, Buono said on a con-
ference call Wednesday. Hes a
guy that I think brings instant
credibility [and] adds strength to
[the position].
You cant win without great
quarterbacking.
Glenn, who spent the past two
seasons with the Calgary Stam-
peders, was selected by Ottawa in
the expansion draft to stock the
leagues ninth franchise, but
became available after the Red-
blacks signed Henry Burris to a
three-year contract following his
release by the Hamilton Tiger-
Cats.
I believe it will be a very, very
good marriage. Kevin wants to be
in a place where he believes hell
be utilized, said Buono. We
hope Travis goes all 18 games, but
if he doesnt we feel we have a
guy that can step in and help us
win football games.
Lulay missed six games at the
end of the 2013 season after dam-
aging his labrum in September,
but returned to play in the Lions
West Division semifinal loss to
the Saskatchewan Roughriders.
When you look at professional
sports, whether its the NFL or
the CFL, injuries to your quarter-
back [are] always a major issue
that you have to deal with, said
Buono. To be able to acquire a
quarterback of [Glenns] calibre
who comes in here and makes us
that much better instantly was a
tremendous opportunity for us.
B.C. head coach Mike Benevides
said he expects Lulay to be ready
when training camp opens June
1, but added that his No. 1 quar-
terback is still not 100 per cent.
Theres no doubt that were
going to need a phase of training
camp to continue the progression
that hes on right now, said Be-
nevides. The plan is to have him
work for a segment of time in
practice but the first day of camp
he will be participating.
The Lions were in need of a ca-
pable secondary option under
centre after Thomas DeMarco
was selected by Ottawa in the
expansion draft and Buck Pierce
retired to become an assistant
coach with the Winnipeg Blue
Bombers.
The club has former NFLer John
Beck on the roster, as well as
Chris Hart, who was with B.C. last
season but saw no playing time.
Buono said the addition of
Glenn will allow Lulay more time
to heal if need be ahead of the
Lions first regular-season game.
When you have a quarterback
thats coming off a major injury,
the stronger you are behind him,
the less pressure you put on that
quarterback to speed up the
process, said Buono.
We want this to be a natural
progression where [Lulay] fol-
lows the medical protocol, which
hes doing. Having Kevin here not
only gives Mike and I confidence,
but I think it gives everybody in
the organization, everybody that
supports the B.C. Lions confi-
dence that come June 28 we will
have a very good football team
and well have two very good ex-
perienced quarterbacks to lead
us.
Glenn said after Tuesdays trade
that he was excited for a fresh
start with the Lions. The 34-year-
old guided Calgary to a Grey Cup
berth in 2012 and a CFL-best 14-4
record last year before getting
scooped up by the Redblacks.
To be honest I didnt know if
anything would actually hap-
pen, said Glenn, who wanted out
of Ottawa after the team signed
Burris. To give up a first-round
draft pick shows a team really
wants you.
Thats what I was kind of excit-
ed about.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Canadian Press
CFL LIONS
Buono ebullient after snagging
veteran pivot Glenn from Ottawa
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
JOSHUA CLIPPERTON
VANCOUVER
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I believe it will be a very,
very good marriage. Kevin
wants to be in a place where
he believes hell be utilized.
Wally Buono
Lions GM
GLOBE SPORTS
THE GLOBE AND MAI L THURSDAY, MAY 15, 2014 A S5
BIRTH AND DEATH NOTICES
TO PLACE AN AD CALL: 1-800-387-9006 77 EMAIL: ADVERTISING@GLOBEANDMAIL.COM
DEATHS
MEMORIAL SERVICES
WADE, Philip Edward
A reception to honour and celebrate
Philips life will be held Saturday,
May 24, 2-4 p.m. at the Visitation
Centre at Mt. Pleasant Cemetery.
375 Mt. Pleasant Rd. Toronto.
IN MEMORIAM
Jean Irene Thompson
Born: Clearwater, Manitoba
1916/06/13.
Died: Moose Jaw, Saskatchewan
2013/05/15.
Always in our thoughts.
- Keith, Bev, and Bryne.
FUNERAL SERVICES
JURIMAE, Janine Patricia (nee Loos), R.N.
Service Friday 1 p.m.
REDDEN, Norma Delores
Service Thursday 3 p.m.
TOD, Edna June
Service Friday 3 p.m.
FUNERAL SERVICES
WEDNESDAY
FORMAN, Frances - 11:00 Mt. Sinai Memorial
Park.
SIMON, Bertha - 11:30 Chapel.
THURSDAY
WORTZMAN, Albert - 10:00 Chapel.
ISRAEL, Joseph - 11:30 Chapel.
FRIDAY
LATOWSKY, Albert - 10:00 Chapel.
SILVERMAN, George - 12:00 Bathurst Lawn
Memorial Park.
CALL FOR INFORMATION
COHEN, Leslie Charles - Call for information.
SHIVA
WINTER, Lillian - 59 Ames Circle.
LUFT, Tillie - 20 North Park Road, #1606,
Thornhill, Ontario.
PALMER, Claire - 1 Benvenuto Place, #404.
FORMAN, Frances - 155 St. Clair Ave. W.,
Main Flr.
SIMON, Bertha - 447 Walmer Road, # 310.
2401 Steeles Ave. W. 416-663-9060
All service details are available on our website
DONATIONS ONLINE
www.benjamins.ca
BENJAMINS LANDMARK MONUMENTS
YAD VASHEM AT LANDMARK
3429 Bathurst St. (416) 780-0635
3429 Bathurst Street 416-780-0596
ANNIVERSARIES
May 15th, 1954
Congratulations
Colin and Meta Mills
on your
60th Wedding Anniversary!
We are so happy
to have you in our lives!
With love and best wishes,
your children, grandchildren
and great-grandchildren
TED (EDWARD G.) ANDERSON
Ted Anderson passed away on Thursday, May 8th 2014, well-attended
by the doctors and nurses in Toronto General Hospital Emerg and with
his wife and daughters at his side. Ted was diagnosed with an aggressive
prostate cancer in 2010 and has had a difficult road to walk all four years,
but he has done so with courage, determination, perseverance and
humour. He has asked little of others but much of himself to stay strong
in the face of the extreme challenges presented by the disease. Ted is
a special man; intelligent, honest, easy-going, quick-witted, gentle and
gentlemanly - a wonderful husband and father, a good friend, and a well-
respected boss and partner. He loved his girls, his work families, his LPCI
poker buddies, skiing at Whistler, travelling (everywhere, but especially
England and Africa), golf, Lake of Bays, and the Boss.
Ted was also a significant contributor to the worlds of venture capital
and social impact investing. He entered venture capital in 1981 and joined
Ventures West as a partner in 1996, becoming president in 2008. In 1994,
Ted began his involvement and his love affair with Africa, participating
in a number of international government initiatives to kickstart venture
capital investments in African countries, including the Aureos Southern
and Western Africa Funds and the Canada Investment Fund for Africa.
Ted has also functioned as the technical advisor and a member of both
board and investment committee for Injaro Agricultural Holdings Ltd. Ted
joined the MaRS team in 2012 and most recently has been serving as
the Director of MaRSs Centre for Impact Investing and in that capacity
was doing some exciting work for the Centre, advancing its and Canadas
interests in social impact investing.
Ted is well-known in the venture capital and impact investing worlds
and many are likely to join his family in mourning his passing. That
family is comprised of: his wife, Deborah Cumming, his daughters
Charlotte and Caroline Anderson, his parents Marilyn and Jim Anderson
(Guelph), his sister Karen Williams and family (Aurora), his brother-in-
law James Cumming and family, and the Dickinson clan of Bracebridge
and St. Catharines. There are a few non-family family members to
be acknowledged, who tried so hard to provide Ted with comfort and
companionship and hope right to the very end - Colin and Graeme Eadie,
Paul Kent, Valerie Scott, Howard Riback, Bryan Kerdman, Barry Gekiere,
John Dale, Felix Chee and Sam Znaimer.
Deb, Charlotte and Caroline would like to extend a heartfelt thank you to
Dr. Srikala Sridhar of Princess Margaret Hospital who did everything she
could for Ted and who not only cared for Ted but about him.
Given Teds very large presence in the worlds of venture capital and social
impact investing, MaRS will be hosting an event in Toronto at a later date
for Teds business friends and colleagues to get together to raise a glass
and celebrate his (and their) accomplishments.
There will a private family funeral for Ted. A gathering to talk and tell
stories is planned for Thursday, May 15th, at the Faculty Club, University
of Toronto (41 Willcocks Street) , between 6:30 pm and 9 pm. Please join
Deb, Charlotte and Caroline at the Faculty Club to mourn the loss and
celebrate the life of a quite wonderful man who was huge value-added in
so many lives and in so many ways.
Barclay, Joanne
(nee Kottmeier)
Surrounded by the love of her
family, Joanne passed away
peacefully at St. Josephs
Hospital, Hamilton on Sunday,
May 11, 2014 at the age of 74.
She will be dearly missed by her
sons, Don and Chris, and
d a u g h t e r - i n - l a w K i m .
Predeceased by her parents,
Marie and Robert "Kotty" and
brother, Robert Jr. "Bob"
Kottmeier. Mom was a retired
High School teacher from St.
Charles Adult Education -
HWCDSB, and previously taught
at PJCVS - GEDSB in Brantford
and the HWDSB. She was also a
McMaster University alumnist
and a member of the Westdale
Reformed Church. She lived a life
rich with family, friends, music,
art, reading, knitting, and
baking. Special thanks to the ICU
staff at St. Josephs Hospital and
Pastor Stan Seagren for their
caring and support. Friends will
be received at Marlatt Funeral
Home, 195 King Street West in
Dundas on Thursday, May 15th
from 2:00 - 4:00 p.m. and 7:00 -
9:00 p.m. A celebration of her
life will be held within the
Funeral Homes chapel on
Friday, May 16th at 11:00 a.m.
Internment to follow at White
Chapel Memorial Gardens, 1895
Main Street West in Hamilton. In
lieu of flowers, donations to the
charity of your choice is
appreciated. Online condolences
may be made to
www.marlattfhdundas.com
FRASER/ZACOUR,
Barbara (nee Chater)
Passed away peacefully on
Saturday, May 10th in Sidney,
BC. Beloved wife of the late Jack
Fraser, and the late Walley
Zacour. Loving mother of Alison,
Jack, James, Alex and Jennifer.
Grandmother of Bill, Ben, Jack,
Tara, Katrina, Heather, Marlon
and Leilani. Great-grandmother
of Jaime, Caylie, Brooke,
Samantha, Hadley and Kaliope.
A family celebration of her life
will take place on Tender Island,
BC. In memory, contributions to
the Canadian Cancer Society will
be greatly appreciated.
ISRAEL, Joseph
On Tuesday, May 13, 2014 at
Baycrest - Apotex in Toronto, ON.
Beloved husband of Guta. Loving
father and father- in-law of Al and
Arlene, and the late Frances Israel.
Devoted grandfather of Shari and
Paul, Michael and Jackie, Steven and
Natalie, Jeremy, Michael and
Arianna, great-grandfather of
Sydney, Max, Jack, Emily, Jordan,
Jakob and Henry. At Benjamins Park
Memorial Chapel, 2401 Steeles
Avenue West (3 lights west of
Dufferin) for service on Thursday,
May 15, 2014 at 11:30 a.m.
Interment in the Tzosmerer Friendly
Association Section of Bathurst Lawn
Memorial Park. Shiva 398 Douglas
Avenue in Toronto with visits daily
from 1:00 to 5:00 and 7:00 to 9:00
p.m., except Friday 1:00 to 5:00 p.m.
and Saturday 7:00 to 9:00 p.m. Shiva
concludes Wednesday, May 21, 2014
in the morning. Donations may be
made to the Joseph Israel Memorial
Fund c/o The Benjamin Foundation,
3429 Bathurst Street, Toronto,
M6 A 2 C3 , 4 1 6 - 7 8 0 - 0 3 2 4 ,
www.benjamins.ca
TO SUBSCRIBE CALL
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CONDOS CO-OPS TOWNHOUSES
OWEN SOUND - 1 bedroom condo,
private sale, located on Georgian Bay,
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TO SUBSCRIBE CALL
1-866-36 GLOBE
Ray Allens three-pointer with 32
seconds left highlighted a huge
Miami rally, and the Heat
advanced to the Eastern Confer-
ence finals by topping the Brook-
lyn Nets 96-94 Wednesday night.
The Heat won the series 4-1,
and will face either Indiana or
Washington in the East finals
starting next week.
Miami had not led since late in
the second quarter before Allens
shot from the left wing put the
Heat up 93-91. Shaun Livingston
tried to answer with 24 seconds
left, missing in the lane and Chris
Bosh controlled the rebound for
Miami.
Allen made a pair of free
throws with 21.6 seconds to play,
capping a 12-0 run that erased an
eight-point deficit.
LeBron James scored 29 points
and Dwyane Wade had 28 for the
Heat. Joe Johnson scored 34 for
the Nets, including a three-poin-
ter with 11 seconds left that got
his team within one.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Associated Press
LeBron James scored 29 points as the Heat came back from an eight-point
deficit to knock the Nets out of the playoffs. STEVE MITCHELL/USA TODAY SPORTS
NBA HEAT 96, NETS 94
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Late rally pushes
Miami to East final
TIM REYNOLDS MIAMI
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
I
ts unclear exactly when John
Wall got his mojo back. Maybe
it started on the plane ride to In-
dianapolis, when he watched
movies and remained unusually
quiet while thinking to himself:
If we lost this series, Id put it
all on my shoulders.
Maybe it was before the game,
when he confessed his frustra-
tion to Randy Wittman and was
promptly admonished by the
coach: He was like, I never
want to hear you say that ever
again, because I know how confi-
dent you are in yourself and I
know how competitive you
are.
Maybe it was when teammate
Marcin Gortat, who had also
been struggling in the series,
pounded Wall on the chest after
the starting lineups were
announced and offered support
no matter what.
One thing is clear: If the Wash-
ington Wizards manage the im-
probable and overcome a 3-1
series deficit against the Indiana
Pacers, the turning point will be
the moment their All-Star point
guard stopped playing like a
playoff novice.
You can get down on yourself
pretty easy, Wall said.
Unable to hit a shot or come
through in clutch late-game sit-
uations in the first four games,
Wall was all over the stat sheet
in Tuesdays Game 5 rout: 27
points, five rebounds, five assists,
five turnovers. He and the Wiz-
ards stayed alive, but only one-
third of the would-be comeback
is complete as they return home
for Thursdays Game 6, trailing
3-2 in the series.
To get it done, theyll need sim-
ilar efforts from Wall, whom
teammates have dubbed the
Wizards head of the snake.
For the first time in 102, 103
games that we had this season, I
seen this guy that didnt want to
talk to anybody, Gortat said. He
didnt want to interact with any-
body. He didnt rap before the
game. He didnt laugh before the
game. I guess its just a lot of
things around basketball that
has influence on him. But at
the end of the day, Im with him.
End of the day, Im going to
jump in the fire behind this guy.
Wittman said he told Wall
before Game 5: You go out there
and play as aggressive as you can
at both ends of the floor and
dont worry about mistakes, and
dont worry about made or
missed shots. Youve got to be
aggressive.
When hes tentative, Wittman
added, thats not John.
Now the Wizards have to figure
out how to bring the road show
home. They are 5-1 away in this
years playoffs and just 1-3 at the
Verizon Center.
Much of the pressure will again
be on Wall, with the Pacers
attempting to stop the mojo
revival and avoid a Game 7.
John actually hit some shots
and things like that, Indianas
George Hill said. As a guard Ive
got to get better and try to make
it tough on him again, and not
let him get off like that.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Associated Press
NBA WIZARDS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
How Wall got his groove back
WASHINGTON
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
But at the end of the day, Im
with him. End of the day, Im
going to jump in the fire
behind this guy
Marcin Gortat
Wizards centre
Baltimore Kentucky Derby win-
ner California Chrome has been
made the heavy 3-to-5 favourite
for the Preakness Stakes, and he
drew a favourable post position
in the 10-horse field.
Trained by Art Sherman and
ridden by Victor Espinoza, Cali-
fornia Chrome will break from
the No. 3 post, which has pro-
duced 10 winners in the previous
138 runnings of the 1
3
16-mile race.
Social Inclusion was the 5-to-1
second choice of new Pimlico
oddsmaker Keith Feustle. The
colt drew the No. 8 post on
Wednesday.
Bayern and Ride On Curlin are
the co-third choices at 10 to 1.
Bayern is trained by Hall of Fam-
er Bob Baffert, who will be seek-
ing a sixth Preakness win. Ride
On Curlin finished seventh in
the Kentucky Derby two weeks
ago.
The Associated Press
HORSE RACING
CALIFORNIA CHROME A HEAVY FAVOURITE FOR PREAKNESS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
S6 A THE GLOBE AND MAI L THURSDAY, MAY 15, 2014
DEATH NOTICES:1-800-387-9006 7 FEEDBACK TO OBIT@GLOBEANDMAIL.COM
Obituaries
Frances Hoyd
Grandmother, businesswoman,
world traveller, survivor. Born on
Dec. 1, 1918, in Kaposvar, Hungary;
died on Jan. 9, 2014, in Vancouver,
of pneumonia following complica-
tions from a fall, aged 95.
F
rances was born Franceska
Anna Schon in Kaposvar,
Hungary, just three weeks after
the armistice that ended the First
World War. Her parents ran a
general store and she had a com-
fortable middle-class Jewish
upbringing, attending school and
studying ballet and piano. She
was very close to her brother Ist-
van, who was five years her sen-
ior and an accomplished
musician.
In her late teens, the family
moved to Budapest where she
trained as an aesthetician. She
had an active social life and met
George Hajduska, whom she
married in 1942. In Hungary the
removal of Jews came later than
in some countries, but eventually
the Nazis came. George was sent
to Russia with a forced labour
battalion. Frances was captured
with her mother at a railway sta-
tion in 1944 and sent first to
Auschwitz and later to the Pars-
chnitz camp in Czechoslovakia.
Frances was one of the lucky
few to survive Auschwitz. She
spoke German and, because of
her skills as an aesthetician, was
protected by one of the female
camp officers. After liberation
she reunited in Budapest with
George, who had walked home
from Russia. Others were not so
fortunate: Francess mother and
brother, and most members of
both Frances and Georges
extended families, died in the
Holocaust.
In 1949, the couple left Hungary
with their infant daughter and
after stops in Israel, Spain and
France, immigrated to Canada in
1951. George was an engineer spe-
cializing in shoe manufacturing,
and they established a new life in
Quebecs Eastern Townships and
later in Montreal. Their family
name was anglicized to Hoyd.
The 1956 Hungarian Revolution
brought a new wave of refugees
from their homeland to Canada,
and Frances was active with the
Red Cross to help newcomers set-
tle. She worked at a manufactur-
ing company, eventually
becoming office manager, and
used her connections to help
other immigrants find jobs.
George never completely recov-
ered his health after the war and
he died suddenly in 1961. Frances
raised their daughter Marianne
as a single working mother from
the age of 42. Although she had
some close gentlemen friends in
later years, she always considered
herself a widow.
In 1973, Frances visited Sydney,
Australia, at the invitation of old
friends from Hungary; taken by
the warm climate, in contrast to
a Montreal winter, she decided to
move there. She enjoyed taking
cruises and even lived in Tahiti
for several months. In 1985, Mar-
ianne and husband John, who
had also been living in Australia,
moved back to Canada. A year
later, Frances returned, too, set-
tling in Vancouver. She was de-
lighted to become Nana with the
birth of grandson Joshua in 1988,
and to be able to participate in
his bar mitzvah in 2001.
In her later years Frances was
active in the Vancouver Jewish
Community Centre, serving on
the board and taking part in edu-
cation programs for the Vancou-
ver Holocaust Centre. There she
became involved in the Gesher
Project, which brought together
Holocaust survivors and their
children to talk, write and paint
about their experiences. Many
participants considered her the
Mama, as she often helped
them make sense of their experi-
ences through conversations
they found difficult to have with
their own families. Those conver-
sations helped her, too, and she
became close friends with several
members. The groups artwork
was exhibited in Vancouver and
then went on a 10-city tour of
Canada and to the United States.
While her experience of the
Holocaust and the loss of so
many family members clearly
shaped the arc of her life, she did
not allow those events to define
it. As one friend put it, She was
able to see flowers, even in the
darkness.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Marianne Hoyd is Francess daugh-
ter; John Wood is her son-in-law.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
To submit a Lives Lived:
lives@globeandmail.com
Lives Lived celebrates the everyday,
extraordinary, unheralded lives of
Canadians who have recently
passed. To learn how to share the
story of a family member or close
friend, see tgam.ca/livesguide
LIVES LIVED
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M
alik Bendjelloul, a Swedish
filmmaker who won the 2013
Academy Award for best docu-
mentary with his debut feature,
Searching for Sugar Man, about a
forgotten American balladeer
who, unwittingly, had achieved
fame halfway around the world,
was found dead on Tuesday in
Stockholm. He was 36.
Mr. Bendjelloul edited Searching
for Sugar Man in his Stockholm
apartment and paid for most of it
himself. The film tells the story of
Sixto Rodriguez, a singer, song-
writer and guitarist from Detroit
who recorded two blues-tinged
folk-rock albums under the single
name Rodriguez in the early
1970s and then vanished from the
music scene.
For decades he supported him-
self and three daughters doing
manual labour, unaware that his
music songs of protest and
hardscrabble life rendered in a
heartfelt tenor had resonated in
South Africa. Victims and oppo-
nents of apartheid there especial-
ly admired his anthems of
struggle. The film takes its title
from Sugar Man, a song about a
drug dealer that appeared on
Rodriguezs 1970 album, Cold Fact.
The film unearths Rodriguezs
tale in the manner of a detective
story, telling of the search for in-
formation about the singer that
had been started by an ardent fan,
Stephen Segerman, a Cape Town
record store owner.
Mr. Bendjelloul was born in
Ystade, at Swedens southern tip,
on Sept. 14, 1977. He grew up in
Angelholm, about 140 kilometres
to the northwest. Published
sources say that his father,
Hacne Bendjelloul, was an Alger-
ian doctor and that his mother,
the former Veronica Schildt, was a
translator and a painter.
As a youth in the early 1990s,
Malik appeared in a recurring role
in the Swedish television series
Ebba and Didrik, about siblings in
a seaside village. He studied jour-
nalism at the University of Kal-
mar (now Linnaeus University),
and went on to make short docu-
mentary features for Swedish
television featuring interviews
with musicians. Restless, in 2006,
he quit his job and travelled to
South Africa in search of an origi-
nal story for a movie of his own.
In Cape Town he met Mr. Seger-
man, who in 1997 had created a
website, The Great Rodriguez
Hunt, hoping to gather informa-
tion about the singer. When Mr.
Bendjelloul heard the story of
Rodriguez, he was astonished.
This was the greatest, the most
amazing, true story Id ever heard
an almost archetypal fairy tale,
he said in a 2012 interview with
The New York Times. Its a per-
fect story. It has the human ele-
ment, the music aspect, a
resurrection and a detective
story.
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New York Times News Service
MALIK BENDJELLOUL FILM DIRECTOR, 36
Filmmaker won an Academy Award for Searching for Sugar Man
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BRUCE WEBER
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A
fter his Spitfire was shot
down over France in the
spring of 1942, William Ash made
his way to Nazi-occupied Paris
with the help of the Resistance.
His plan was to go to Spain, then
on to England to resume flying.
While waiting, he sauntered
through Parisian streets as a tour-
ist, visiting the Louvre and the
zoo, dining out and swimming
daily.
He loved doing stuff for the
hell of it, said Brendan Foley,
who helped Mr. Ash write his
autobiography, published in 2005,
and who confirmed his death, on
April 26 in London at the age of
96.
While in Paris, Pilot Officer Ash
was seized by the Gestapo and
sent to the notorious Fresnes Pris-
on, where he was tortured. After it
was determined that he was an
airman and not a spy, he was
shuttled from one Nazi POW
camp to another in Germany,
Poland and Lithuania. In the
camps he discovered his true call-
ing: would-be escape artist.
Before the war ended, he had
attempted 13 escapes and made it
outside the barbed wire a half-
dozen times. He went under, over
and through fences. He walked
out in disguise. He tunnelled
through a latrine. He was always
recaptured.
Mr. Ash said the routine was a
bit like being sent back to Go
when playing Monopoly only
with more bruises.
Most prisoners never tried to
escape, much less become serial
escapologists. Many who did were
killed, like two-thirds of the 76
prisoners who participated in the
mass breakout in March, 1944,
that inspired the 1963 movie The
Great Escape.
Mr. Ash was not among the 76,
although at the time he was in the
same prison camp, Stalag Luft III,
in an area of eastern Germany
that is now part of Poland. He was
in solitary confinement, or the
cooler, where Virgil Hilts (the
brash American played by Steve
McQueen in the movie) often
landed.
Some have suggested that Mr.
Ashs escape record made him a
model for Mr. Hilts. If I was, no
one told me, he wrote in his
memoir, Under the Wire: The World
War II Adventures of a Legendary
Escape Artist and Cooler King.
William Franklin Ashs exceed-
ingly full life began on Nov. 30,
1917, in Dallas. He graduated with
honours from the University of
Texas, then wandered as a hobo,
bouncing from boxcar to boxcar,
job to job. In 1934, as a cub repor-
ter for The Dallas Morning News,
he gazed on the bullet-riddled
corpses of Bonnie and Clyde.
Disappointed to have missed
the Spanish Civil War, he decided
to join the Royal Canadian Air
Force to battle Hitler. (The United
States was neutral at the time.)
Reaching Detroit in early 1940, he
walked across the Ambassador
Bridge to Canada to enlist, giving
up his U.S. citizenship.
Mr. Ash found he loved to fly, a
delight that ended abruptly when
six German fighters shot him
down near Calais on Frances
northern coast. His first escape
attempt as a prisoner of war
involved hiding in a shower drain.
Two weeks solitary confinement
followed. He nonetheless found
the act of escape exhilarating,
despite or because of the dan-
ger. He loved to take risks. If he
saw a big red button, he had to
push it, Mr. Foley said.
Mr. Ash said his escape attempts
had a larger purpose: to help the
war effort by forcing the Germans
to squander time and resources
chasing escapees. But the stakes
were high: After the real life
great escape, Hitler ordered 50
of the men to be massacred.
Mr. Ash had three stints at Sta-
lag Luft III, the last camp he was
in. In 1945, after a forced march in
the snow, he limped across a bat-
tlefield to freedom as the war
neared its end.
After the war, he was granted
British citizenship and King
George VI made him a Member of
the Order of the British Empire.
He earned a second bachelors
degree in philosophy, politics and
economics from the University of
Oxford, and became manager of
the British Broadcasting Corp.s
operations in India. The BBC later
fired him, however, because of his
leftist politics. Even the Moscow-
oriented Communist Party reject-
ed him, saying he was too radical
to be a member. He responded by
helping to start a British Maoist
party.
In 1946, he married Patricia
Rambault, who as a member of
the womens branch of the Royal
Navy had corresponded with him
as a POW. The marriage ended in
divorce. In the late 1950s, he mar-
ried Ranjana Sidhanta, whom he
leaves along with his daughter,
Julia Ash; son Francis; five grand-
children; and two great-grand-
children.
Mr. Ash was a published novel-
ist, chairman of the Writers Guild
of Great Britain and a prolific au-
thor of radio dramas.
One of his most daring moves
during the war was to trade iden-
tities with a POW named Don Fair,
who was being transferred to Sta-
lag Luft VI, a camp near Heydek-
rug (now Silute), Lithuania. Mr.
Ash sought the switch because he
feared he was becoming too well
known. Each man climbed
barbed-wire fences between
machine-gun towers in broad
daylight to change compounds.
Mr. Ash went to Lithuania with
Mr. Fairs ID papers. Mr. Fair, a
New Zealander, remained in the
camp under Mr. Ashs name.
After escaping from the Lithua-
nian prison, Mr. Ash found a boat
on a beach that was too heavy for
him to move. He approached
some men in a field, by his
account, and told them he was an
escaped U.S. pilot. Yes, we would
love to help you, one of the men
said, but we are soldiers of the
German army, and you are stand-
ing on our cabbages.
Mr. Ash returned to the cooler.
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New York Times News Service
WILLIAM ASH ESCAPE ARTIST, 96
Fighter pilot was hooked on flying the coop
Nicknamed the Cooler King for punishment he often received over his many bids for freedom from German PoW camps
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William Ash attempted 13 escapes, over and through fences, in disguise,
even tunnelling through a latrine but was always recaptured. UNDER THE WIRE
William Ash met Canadian PM
Mackenzie King after a dogfight.
DOUGLAS MARTIN
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CANADIAN CONNECTIONS
William Ash loved his time
training as a Spitfire pilot in
Windsor, Ont., although he lat-
er recalled that the food on
the base was rationed while
there was plenty of food out-
side the gates. Amid a Cana-
dian sea of plenty, the [RCAF]
base was a little desert island
of rationing, he said. One of
his fellow trainees, Paul Burd-
en, was the son of a chicken
farmer in Fredericton, and the
two made long-distance forays
when on leave to load up on
tinned chicken.
Mr. Ash quickly got a reputa-
tion as a skilled flyer, even in
the lumbering Fairey Battles
on which they trained. But he
got in trouble for flying upside
down (to test my instru-
ments) and flying under
bridges (to test my nerves).
When he started flying upside
down under bridges, he said,
they declared him ready to
face Hitler, chose him as a
Spitfire pilot and sent him to
England where he joined the
newly formed RCAF 411 Squa-
dron.
Probably his greatest escape
was his tunnel from Schubin,
a POW camp in occupied
Poland. It was one of the first
mass breakouts and regarded
as something of a dress
rehearsal for the later Great
Escape. He dug the long tun-
nel from inside a latrine,
working with another RCAF
pilot Eddy Asselin, who later
became a Montreal city coun-
cillor and a Liberal MP in the
1960s. To preserve security,
they nicknamed the tunnel
Asselin, so when people asked
how Asselin was getting on,
the guards just thought he
was a particularly popular Ca-
nadian. Mr. Ash and Mr. Asse-
lin were first out of the tunnel,
and though all of the 20 or so
who escaped were eventually
recaptured, or died in the
attempt, some got as far as
Denmark or Austria.
Seventy years later, Mr. Ash
was still proud of his Canadian
connections and often com-
mented that his RCAF pension
was better than that of his
English or American counter-
parts, so it was worth the
walk from Detroit.
Brendan Foley