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takes over Bathurst Marine, will appoint royal commission Special to The Globe and Mail CHARLOTTETOWN — The Prince Edward Island Government, through its agency the Fishermen's Loan Board, has seized control of Bathurst Marine Ltd. and will operate the shipbuilding company through Ferguson Industries Ltd., a shipyard in Pictou, N.S. The announcement yesterday followed negotiations over the New Year's weekend after Bathurst Marine was unable to meet its payroll on Friday. It had been known for some time that the company was in severe financial difficulties. Bathurst Marine is centrolled by Jens Moe, who also is chairman of Gulf Garde* Foods Ltd., an associated fish-processing company that shut down several weeks ago because of a lack of operating capital. On the heels of the takeover announcement came a statement that the Government will appoint a royal commission to look into the affairs of Bathurst Marine and Gulf Garden Foods. The terms of reference would be to "inquire into the causes of the financial difficulties of both companies and all transactions in connection with the formation and development of the companies." The commission also would be required to "report on the involvement of the previous and present Government with reference to the province's financial involvement in the industries." The Government probably will appoint a senior executive of a national trust company to head the commission. The statement said Government action was necessary because Mr. Moe could not get the funds to keep the plants operating. The decision to seize the Government's assets in Bathurst Marine was actually made by the Fishermen's Loan Board on Dec. 19, and then passed to the executive council of the provincial Government for review. At the present time, four trawlers are under various stages of construction and six remain to be built under a $9-million deal undertaken last spring. Bathurst Marine was to build the trawlers for Gulf Garden Foods. Some time ago the provincial Government announced that about $900,000 in progress payments was not in evidence in trawler construction. The provincial Government built and equipped the shipbuilding plant four years ago for Bathurst Marine at a cost of $400,000. The Government announcement said the construction of all trawlers will be completed under the new arrangement. The Government met the Bathurst Marine payroll on Friday, and paid workmen up to Dec. 24. It will also meet the current payroll to pay all employees up to last Friday. The weekly payroll at Bathurst Marine is in the vicinity of $10,000. The Government announcement said: "The financial position of Bathurst Marine has deteriorated to the point that it is no longer able to proceed efficiently with construction, and legal proceedings instituted by its creditors hrve resulted in garnishees' being served on the Fishermen's Loan Board, thus preventing further payments to Bathurst Marine under the terms of its contract." What happens to these creditors now is an open question. The Government, in seizing control, has acted as a major creditor and has not assumed liability. Bathurst Marine still exists as a corporate entity^ and, although insolvent, has^s not declared or been peti-(s tioned into bankruptcy. «i _, _ v J qo The Government statement w emphasized that the shipbuild-?vy ing and fish-processing opera- on tion at Georgetown will contin- Q ue. It also said it was proceed- or ing "with the understanding Jj.J that it will receive the full co- u: operation of Bathurst Marine J4' Ltd. in assuming the manage- ih ment of the construction of the trawlers." Representatives of the Fishermen's Loan Board, Fergu- son Industries, Lloyd's of London and union agents are in Georgetown to begin the takeover procedure. Nine special constables have been appointed to look after the security of the yard and all materials. They have been given instructions to deny entry to all unauthorized persons. This apparently includes the president of Bathurst Marine, who was twice refused permission to enter the premises over the weekend. The intentions of the Government with regard to Gulf Garden Foods are still indefinite. The Gulf Garden plant was built by the Government at a cost of about $3-million and the Government holds a mortgage on the physical assets. However, under the terms of the agreement with Gulf Garden no mortgage payments are due for almost two years yet. Several large processing companies have expressed an interest in the processing plant, and the Government will negotiate with them to see if it can get the plant into operation by early spring. However, the Government emphasized that Gulf Garden is still privately owned and operated. Originally, Bathurst Marine and Gulf Garden were set up in the finy community of Georgetown to stimulate economic activity in the eastern part of the province. Bathurst Marine was to build stern trawlers of an advanced design for Gulf Garden, which would process the catch. Employment at the two plants was expected to top 500 when the two companies were at peak operation. However, a continuing shortage of operating capital has hampered development, and the provincial Government under the former Conservative administration began to support the companies with funds from the provincial Treasury. No figure has been given as to the amount of money that has gone into the operating capital of the plants from the provincial Treasury. In addition, at least $10.5-million from Norwegian financiers has been invested in the Georgetown operation. The provincial Government says an external audit shows both companies to be more than $l-million in debt, and there are hundreds of creditors. Norse jSkipper^ GoW Montreal /* IIS Cane i MONTREAL (CP) — The,fore the Danish Thora Dan, a Norwegian freighter SvanefjelL previous winner. yesterday won Montreal's cov- Following the Danish lead, eted gold-headed cane, award- many countries now are oper- ed annually to the skipper of a ting ice-strengthened ships on the first vessel to reach thei the rivsr in increasing numbers port in the new year. \ each year. The forecast for this The ice-strengthened ship tied winter is that as many as 200 ruS aATrjTaieaJDufjmay reach the port, a far cry vpi b jwi *se 6i aptoap IP*; from the six or seven of the fpm iiramsaw aux -aaiuejenS! 1950s. oTis-khjo jaW stm 'uoiqM. Ail the ships operating on the joi uonduinssB m' si siqi | St. Lawrence during the winter * " -^uiouooa am are general cargo vessels, ui SuiuaaeaAi auios si aaaq* jew Pireq V *pe^lB saDU3P -ua jo asneoaq 'i96I n saxei a'siBJ oj uosuqof luapisa-id tq iduiawe ou aq R™ <"&w rein nondumssB aq? no paseq IIV