Spotlight feature:
Earl Barish
Winnipeg, Manitoba
Barish Saves an Icon, but Can’t Quit Now

By Scott Taylor

Earl Barish

There are people who will say Earl Barish can be hard to work for. There are others who will suggest he micromanages everything he touches. Even more say he’s a demanding taskmaster.

And yet, even those who criticize Barish will not even mildly suggest that he’s a bad guy. In fact, people who might not agree with everything he does, will always add the following to everything they say: “Earl Barish is honest, forthright and has a huge heart. I might not agree with everything, but I like and respect Earl Barish.”

Barish just happens to be the man who saved a Manitoba icon. And while he’ll never admit it—and will always credit others for their efforts—the reality is this: Salisbury House Restaurants and the Salisbury House brand, would not exist today if it were not for Earl Joel Barish. There is no argument. Against all financial odds, he single-handedly saved a piece of Manitoba history.

And at age 63, he came out of retirement to do it.

“Not only did I start at 63, I thought I knew a lot about business, but when I got into this I really had no idea,” Barish said, as he enjoyed breakfast last month at the Sals on the Provencher Bridge. “This experience was and still is new to me. This is what I tell seniors groups when I speak to them. It’s been four years, I’m 67 now, and I learn something new every day.

“No matter what happens in your life, you never stop learning, you never stop realizing that you can learn a lot of new and interesting things. This will always be my message to people: If you think that you have nothing more to offer society, think again. This experience has taught me that you can always learn and you can always contribute.”

It just seems that Earl Barish has always been a success. He is, after all, the man who made Dickie Dee Ice Cream a staple of summertime fun right across Western Canada.

But contrary to popular belief he’s not the founder of Dickie Dee. Fact is, when he was 14-years-old, he drove a Dickie Dee Bicycle all over East Kildonan and North Kildonan, 11 hours a day to make the enormous wage of $12 a day back in 1957.

“Back then, Dickie Dee was owned by Sid Glow, magician Brian Glow’s father,” Barish explained. “In 1957, Frankie Winkler and I went virtually next door and asked Mr. Glow for a bike. He had eight Dickie Dee bikes and Frankie and I got one each.

“I worked 11 hours a day and sold 600 units. That was $60. I got a 20 per cent commission and I can tell you, as a 14-year-old in 1957, $12 a day was a helluva lot of money.”

Earl’s father, Jack, was in the cattle business, but by 1958, he wasn’t doing very well. It was a bad year in the cattle market and Jack noticed that his youngest son was earning a lot of money for himself. When Earl suggested to his father that the family buy the business, his father agreed and did so.

However, by the time Jack bought the company, things had changed. Earl had finished high school at 15, started university at 16 and graduated with a Bachelor of Commerce from the U of M at 19.

For the next seven years, he worked in the management end of Winnipeg’s two major department stores, The Bay and Eaton’s. That story is probably worth a book in itself, but suffice it to say that by 1970, Jack wanted Earl back in the Ice Cream business. And Earl took to it like a cat to a ball of yarn.

With his brother Sid, the Barish family turned Dickie Dee into a huge national success (the subject of yet another book, no doubt), and by the mid-1990s, Earl had sold the business and was in a position to enjoy life.

He dabbled as owner of the Winnipeg Cyclone professional basketball team – if you can call six years of hands-on ownership “dabbling” – but by 2000, he and wife Cheryl were ready to travel the world. Sure, he was still determined to invest his money in what seemed like sound Manitoba businesses, but for the most part, he was in his late 50s and he was ready to enjoy life.

Still, in 2001, he bought a share of what appeared to be a thriving Manitoba operation, Salisbury House, a 70 year old Winnipeg-based restaurant chain that had been sold to a company in Quebec. Looking for investors, businessmen Costas Ataliotis and David Wolinsky, found Earl Barish, who bought 20% of the Salisbury House brand and became what Earl called, “a silent investor”. By late 2005, it had become apparent that Salisbury House was in financial difficulty. “I decided to become a silent investor in 2001 because I was part of a group that felt it was bringing Sals back to Manitoba,” Barish said. “But we got caught in a financial mess.”

“In February 2006, I was in the middle of an extended holiday with my wife Cheryl when I got a call while I was on the deck of the pool in Las Vegas. It was Rob McMahon, the receiver from Ernst & Young. He said, ‘Salisbury House will go under unless you come back and take over just to keep the company carrying on?’ I was shocked. Not only was I a silent investor, but I was getting little or no information on how the money was being spent. I had no idea it was in such a mess.

“I had 20 per cent of the company. It fell to me. So after my astute (he laughs) analysis, I made an emotional decision. Sals had always been a wonderful company. It was founded in 1931. It was an iconic brand of this province. So I decided to try and get Salisbury House back on track. I was 63-years-old, I would have lost $450,000 on the company and while that’s a lot of money, it would not have affected my lifestyle. I didn’t have to do it, but I felt it was important. I watched Eaton’s go down and I couldn’t let that happen to Sals. So on April 19, 2006,
I accepted the position as President and CEO of Salisbury House.”

Little did he know the extent of the mess. The company was $1 million in debt. It also owed $350,000 in outstanding holiday pay to its employees. The company had so many debts, newspapers wouldn’t accept its advertising. And it had no line of credit.

“I learned quickly what I had to do,” he said. “I needed to sign a forbearance agreement. We paid a lot of money to wipe out much of the old debt to the bank, but while our line of credit was $600,000, it was full. So we had to seek protection under the bankruptcy act and let me tell you, it was very difficult to sign that document. We were only allowed to pay 10 cents on the dollar or a minimum
of $300 to our creditors. It hurt many Winnipeg business people and for me it was a very tough decision.”

Eventually Barish got through the financial crisis, but not before the provincial government almost shut down the business and put 600 Manitobans out of work for a measly $51,000 in PST and outstanding hydro bills (and there is the subject for another book).

Of course, the financial crisis wasn’t solved without some heartbreak. He shut down the unprofitable St. Vital restaurant when the lease came up for renewal. Headingley, a huge restaurant with a bar (“What were we doing in the bar business?” Barish asked), had been an 8,000-square foot albatross that Barish knew he had to close. And the restaurant at Portage and Carlton was shut down even after Sals was allowed to pay no rent. “It still wasn’t profitable,” said Barish.

But losing three restaurants was hardly the end of the world. With the financial monster tamed, Barish slowly started making Sals profitable again. He bid successfully for the food service contracts at three city-owned golf courses – Windsor Park, Kildonan, and Harbour View. He has outlets at Canwest Park(Goldeyes) and Canad Inns Stadium (Bombers) and at Seven Oaks Hospital and Health Science Centre. And this summer the SalsMobile will debut at the Red River Ex, outside the Bomber Games and at numerous festivals and celebrations throughout the province. In October a new Sals location will open at the new James Richardson Airport.

“On June 1, we bought back three buildings that had been sold by the previous ownership as part of a major multi-million dollar purchase.” Barish said proudly. “One of these locations houses our Commissary which is central to our business. It is back in good hands.”

We also bought the former Longhorn Steakhouse on Leila Avenue and a brand new Salisbury House will open on Oct. 1. It will also include our Head Office at the back of the new restaurant. And we have plans for a new restaurant at Pembina and Stafford. The future looks bright.”

Not all business stories in Manitoba have a happy ending, but in the case of Salisbury House, a senior citizen with a big heart and a hands-on management style has turned an icon that was on life-support into a thriving re-birth with perhaps the brightest prospects in its near-80-year history.

“We were able to take a company in financial distress and turn it into a vibrant, active, iconic part of the Winnipeg community,” said Barish. “It’s a restaurant chain that is unique to Manitoba and it’s positioned where it should be, a company utilized by two million customers per year.

“Sals is a happening now and, yes, you could say I’m proud of that.”

(Read more in the July 19-Aug 17/2010 issue of Senior Scope)

Lost or Stolen Wallet?

We’ve all experienced at one time or another that feeling of panic when we’ve misplaced our wallet. But what should you do once you’ve retraced your steps and still come up empty?

If you keep a light wallet, meaning you only carry the essentials such as a driver’s licence, bank card, one credit card, and a small amount of cash, the process will be simple and likely any damage caused by your wallet falling into the wrong hands will be minimal. If, on the other hand, you happen to have non-essential pieces of ID such as your birth certificate, SIN Card, citizenship card, and multiple credit cards, then you not only have more work to do to replace these identifiers but also should be concerned about identity theft. Should your wallet go missing the following steps will assist you with replacing and preventing the criminal use of your cards/ID.

1. Contact your bank and financial institution to report missing bank and credit cards. If you have retail credit cards these should be
cancelled as well.

2. Contact Canada’s two major credit bureaus to have your credit file flagged to indicate your personal information has been put at risk.
Equifax 1-800-465-7166
TransUnion 1-866-525-0262

3. Contact your local police service through a non-emergency number to report your wallet being lost. If your wallet was taken from you during a robbery call 911 before doing anything else.

4. To replace your driver’s licence call or visit your local autopac agent for instructions. You may also call Manitoba Public insurance
at 1-800-665-2410

5. To replace your birth certificate contact the Vital Statistics office at 204-945-3701

6. To replace your SIN card contact Service Canada at 1-800-206-7218

7. To replace your citizenship card contact Citizenship and Immigration Canada at 1-888-242-2100

8. To replace your Manitoba Health card call 1-800-392-1207

Despite taking steps to avoid losing or having your wallet stolen this may still occur. By lightening your wallet and storing non-essential cards and documents in a safe at home you will be better prepared in the event this happens to you. Along with your non-essential documents you may wish to keep a list of what you keep in your wallet to facilitate the reporting and recovery process.

Cst. Ben Doiron
Winnipeg RCMP
Commercial Crime Section

(Read more in the July 19-Aug 17/2010 issue of Senior Scope)

Having grandchildren:
It's more than champagne and cigars

BRIAN G. KONRAD CFP, Financial Consultant

Arranging for gifts to grandchildren during your lifetime can give you the deep personal satisfaction of helping out at a time when the gift may be most appreciated—and perhaps even most needed. Your financial gifts can provide them with growth opportunities in sports, culture, education, or can even assist with their family’s essential finances.

Of course, your financial needs should remain a guilt-free, first priority. Your accumulated assets are there to first ensure your own comfort. We will work with you to assess those requirements and set in place the plan that best secures them. From that confident base, you’ll then want to consider your children and grandchildren.

It can be a delicate matter, and you may want to talk with your children before you make any decisions. You will want to examine the degree to which your children should be involved in any arrangements you make for your grandchildren. A parent may be uncomfortable with administering such arrangements, or may not have the ability to do so. As well, you may prefer independent administration.

Should you be in a second marriage, with grown children and stepchildren to consider, decisions become even more important. Blended families require clear planning to ensure that assets are distributed in accordance with your wishes. Once you’ve assessed your personal situation, we can assist you to select the financial strategy best suited to your needs.

Investment in a Child’s Name: Capital Growth, But Loss of Control

Once a grandparent establishes an “Investment for minor” account in the child’s name, control over future investment decisions passes to the child’s legal guardian. With the exception of special circumstances in British Columbia and Quebec, most provinces do not allow parents to deal with their children’s assets. As a result, an order from the court may be required for the parents to make changes in a child’s account. Some financial institutions will allow parents to transact business (rebalancing of the portfolio is permitted but redemptions are not allowed) on their children’s accounts if the accounts are relatively small.

Once the child reaches a designated age, he or she legally assumes responsibility for, and control of, the account. On the positive side, all capital gains will be taxed in the hands of the child, usually at a lower rate of tax and in many instances with no tax liability at all.

Informal Trusts are not Always the Best Choice

Another common practice is to open an account in your name “in trust” for the child where you control the account and manage its contents until the child reaches the age of majority. There is some uncertainty as to whether capital gains may be taxed in the grandparent’s or child’s hands, and the child may still be able to establish a right
of ownership over the account upon reaching the age of majority.

Uncertainty over the ownership of informal trust assets sometimes occurs when the grandparent dies before the assets are distributed. If you currently hold informal trust accounts for grandchildren, consider amending your will to provide clear instructions on how these assets are to be distributed and managed after your death.

Formal Trusts offer More Control

Formal family trusts allow you to control the investment and ultimate use of the trust funds, either through specific designations, or through the selection of trustees who exercise discretion over these matters.

Formal trusts provide certainty that tax planning objectives can be achieved, and allow funds to be controlled by the trustees well into the beneficiary’s young adulthood. These trusts are especially useful for grandchildren with special needs.

With beneficiaries under the age of 21, if the trust is structured properly, it may be possible to have realized capital gains reported in the beneficiaries’ hands, even if the gains are retained and accumulated within the trust for future distribution.

Trusts incur associated costs, including set up and administration. Formal trusts generally become an economical option when the initial investment or series of investments will amount to at least $250,000.

Testamentary Trusts—Choose Your Trustees With Care

These are trusts you set up through your will for your grandchildren, to provide income flow or lump sums in the future—either under certain conditions or when the child reaches an age you designate. Such trusts offer greater flexibility in tax planning. Income distributed from the trust to a beneficiary can be taxed either in the trust or in the hands of a beneficiary. By taking advantage
of a testamentary trust’s graduated marginal rates of taxation, significant tax savings can be achieved, particularly for beneficiaries in higher tax brackets.

When establishing a testamentary trust, you choose trustees who will be responsible for administering the fund and ensuring payments meet criteria you established. Your chosen trustees should be people you trust to make sound decisions with regard to disbursements, and future investments.

Estate Planning: Long-term Considerations

If one of your financial goals is to leave an inheritance, you should consider setting your targets for a number of years in the future to plan for the needs of your heirs. Depending on those goals, your asset mix and focus on
long-term performance may change.

Insurance—A Secure Option

Your permanent life insurance may designate your grandchildren as beneficiaries in what’s called “skip-a-generation”. These policies are useful when your children are comfortable and you want to give grandchildren a solid financial start on their adult lives. If young grandchildren will be beneficiaries, it may be appropriate to use a trust to control the use of insurance proceeds.

Benefit payouts from life insurance can help cover an estate’s tax liability, thus helping to maintain the value of the estate itself. If insurance is being purchased to cover taxes, consider making the proceeds payable to the estate, where the liability for payment of the tax will exist.

Finally, if you happen to be a grandparent raising a grandchild, and you may not have enough accumulated assets to provide for the grandchild in the event of your death, insurance can provide that security.

Your Will Requires a Combination of Financial and Legal Advice

The best and last gift you can offer your children and grandchildren is your will, properly and professionally drawn up, with sound legal advice. A well-prepared will can prevent family conflict following your death and can help ease the emotional pain your heirs could suffer in the distribution of your assets. Your will should take into account provisions you have made through other
registered investments, accounts, or insurance products in which you may have designated beneficiaries. When a conflict exists between a designation made with the financial institution and a designation in your will, the most recently-dated document will generally prevail. But if all documents concur, the process will be immensely simplified, and will result in far fewer legal fees.

You may want to take into account family “branches”—if you wish to have assets apportioned to a particular son or daughter and their families, you would will the asset on a “per stirpes” (by branch) distribution basis. If you wish particular children or grandchildren to have specific items of sentimental value; your will can make certain these items go to the intended recipients.

Special concerns arise when you are in a second marriage, when you wish to provide for younger beneficiaries, or when you wish to make provision for a beneficiary with special needs. Many of the concerns that arise in these situations can be addressed through the use of testamentary trusts, but sound financial planning and legal advice is a necessity.

Education: Which plan is best for your situation?

If your grandchildren decide to pursue post-secondary education, you can help them financially down the road while achieving tax savings now.

Registered Education Savings Plan — Government Incentives Help themGrow — For grandchildren who go on to post-secondary education, RESPs (Registered Education Savings Plans) can make a big difference. An RESP enables you to make contributions on behalf of children or grandchildren while funds invested in the plan accumulate on a tax-deferred basis.

Contributions aren’t required annually; the maximum annual contribution is $4,000 per child to a lifetime total of $42,000. The Canada Education Savings Grant (CESG) will match a subscriber’s contribution at the rate of 20 percent on contributions (subject to annual limits), to a maximum lifetime total of $7,200. If you want to maximize the CESG, a plan should be opened by the time the grandchild reaches the age of 9.

To maximize tax benefits and minimize penalties or unnecessary costs, review the situation with us first.

__________________

BRIAN G. KONRAD CFP
Financial Consultant
brian.konrad2@investorsgroup.com
(204) 489-4640 ext. 246
100-1345 WAVERLEY STREET
WINNIPEG, MB R3T 5Y6
1-888-205-4828
www.investorsgroup.com/consult/brian.konrad

Stephanie Graham
brian.konrad2@investorsgroup.com
(204) 489-4640 ext. 267

This report specifically written and published by Investors Group is presented as a general source of information only, and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide legal advice. Prospective investors should review the annual report, simplified prospectus, and annual information form of any fund carefully before making an investment decision. Clients should discuss their situation with their Consultant for advice based on their specific circumstances. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
™Trademark owned by IGM Financial Inc. and licensed to its subsidiary corporations.
“Having Grandchildren: It’s more than champagne and cigars” ©2007 Investors Group Inc. MP1153 (12/2007)

(Read more in the July 19-Aug 17/2010 issue of Senior Scope)

The end of gentle humour

William J. Thomas

Gordon Arthur Kelly was born in Moose Jaw, Saskatchewan on July 17, 1912 to very little fanfare. In fact he was abandoned by his parents when he was only a few weeks old and adopted by an evangelical preacher and his wife. When they moved to San Diego his life changed. The Great Depression hit America just after he graduated from high school and at the age of 16 he rode the rails in the early 30’s doing odd jobs to survive. Later he graduated from teachers college, but took a job at KGR-Radio in San Diego because it paid more money.

With that entry into the entertainment industry his career was enhanced, his life course was chartered and millions of North Americans laughed at him for the next half a century.

He created a radio show called People Are Funny and took it to television where it was a seven-year hit. In a kind and gentle manner, he made us laugh out loud and more importantly he made us laugh at ourselves.

He was a handsome and dignified man who epitomized the ‘gentle’ in gentleman. He loved children, had five of his own and at 74 years, enjoyed one of the longest marriages in the history of show business.

By talking to children and not down to them, he created a unique form of humour that was a sensation on U.S. television in the 60’s and is as knock-down funny today as it was back then.

Kids Say The Darndest Things was a ‘riot’ for early family television. Gordon Arthur Kelly who became Arthur Gordon “Art” Linkletter upon adoption died May 26th at 97 years of age. His death marked the end of an outstanding human being and a talented, moral man. It also heralded, at least in the North American entertainment industry, the end of gentle humour.

Profanity, cruelty, sexism, racism or shock-jock was never a part of Art Linkletter’s world of comedy, but today they are the cornerstone of stand-up and sitcom shows.

Obscene humour is way too easy which is why everybody’s a comedian on ‘open mike night.’ Clever and clean comedy takes hard work and talent which is why, at this very moment, you can’t name a great comedian who works clean. The last time I attended Yuk Yuk’s I needed a shower when I got home.

So as far as good, honest humour goes, Art Linkletter was a one-of-a-kind entertainer. Joey Bishop once said that Art Linkletter had interviewed so many children he couldn’t talk to you without bending down. After years of working with children the People Are Funny host once defined a child as an object halfway between an adult and a television set.

This is a test. If you do not find these excerpts from Art Linkletter’s Kid Say The Darndest Things funny, and I mean smile, chuckle or laugh out loud, then we’ve lost you to the new but not improved brand of humour.

These are actual question and answer exchanges between Art Linkletter and kids on his show.

• After one seven-year-old recited the Biblical tale of David and Goliath, how David felled the giant with a stone to the forehead from his slingshot thereby killing him, he asked the child what lesson was learned from the story.
The kid’s reply: “Duck!”

• He asked another child if he knew the meaning of the saying ‘The early bid gets the worm’ and the kid said: “They’re welcome to it. I ate one once and it tasted like cold spaghetti!”

• Art: “What kind of lawyer is your father?
Kid: “The good kind. He gets people out of jail.”

• Art: “Did your mom give you any instructions before you came on the show?”
Kid: “Yeah, she told me to keep my mouth shut.”

• Art: “How old is your mom?”
Kid: “My mom says she’s 30 but she’s really 36.”

• Art: “What does your dad do for fun?”
Kid: “He drinks beer and smokes cigars.”
Art: “What about your mom?”
Kid: “She doesn’t have any fun.”

• Art: “Where did your parents meet?”
Kid: “They were roommates at college.”

• After determining that the child did not receive an allowance, Art asked him how he got money.
Kid: “I get a nickel every day I don’t have a damp bed.”
Art: “How are you doing?”
Kid: “I made a dime last week.”

• Art: “What do you want to do when you grow up?”
Kid: “Nothing. I don’t want to grow up.”

• After the child said she had no brothers or sisters, the host asked if she wanted some.
Kid: “Sure, I’m lonesome.”
Art: “What does your mother say when you ask her for one?”
Kid: “She just groans.”

• When asked about her pets, a little girl replied: “I used to have a duck but it ran away. Then I had a turtle, but my father stepped on it. Then I had three goldfish, but my sister put water softener in their bowl and they softened to death.

• Asked to describe the behavior of his 2-month-old baby brother, one child said he cried the whole night long. Art: “Why is that, what do you think?”
Kid: “He probably thinks he’s missing something on television.”

• Art: “Did you see Santa this year?”
Kid: “See him? I fixed him a bourbon and water.”
Art Linkletter was always impressed by a letter he got from a kid that said, “I always watch you when I’m sick.” Most of us will remember this man when a great gale of laughter erupts at nobody’s expense.

______________________________

William J. Thomas lives in Wainfleet, Ont.
For comments, ideas and copies of The True Story of Wainfleet go to www.williamthomas.ca

(Read more in the July 19-Aug 17/2010 issue of Senior Scope)