April 25, 1933

CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

The right hon.

gentleman is quite correct. I said this matter was under negotiation for some time, and the final arrangements were made. The purchase cannot be completed, however, until parliament gives its approval.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
LIB

William Lyon Mackenzie King (Leader of the Official Opposition)

Liberal

Mr. MACKENZIE KING:

So far as parliament is concerned its function is merely that of a rubber stamp with regard to a transaction that has been completed.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

I am sorry I cannot agree with the right hon. gentleman. If parliament decides not to approve of this transaction it cannot be carried out.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
LIB

William Lyon Mackenzie King (Leader of the Official Opposition)

Liberal

Mr. MACKENZIE KING:

Is it not a fact that the radio commission is in possession of these stations and equipment?

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

I cannot answer

that question definitely. I know they are in possession of one of the stations, at all events, but I do not know whether they have taken them all over. Possibly they may have done so, but the transaction oannot be completed until the money is paid, and the money cannot be paid without the approval of parliament.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
LIB

James Malcolm

Liberal

Mr. MALCOLM:

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
LIB

Pierre-François Casgrain (Whip of the Liberal Party)

Liberal

Mr. CASGRAIN:

Expropriated.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
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LIB

James Malcolm

Liberal

Mr. MALCOLM:

Will the minister tell us how the amount was arrived at.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

My hon. friend has asked for information and he is quite entitled to it, but I am sure he wants to be fair-

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
LIB

James Malcolm

Liberal

Mr. MALCOLM:

I do.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
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CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

-and he will realize that I have already given the explanation. Last year in the parliamentary committee the Canadian National stations were valued, being considered at that time to be worth $70,000. It is true they cost more, but that was the valuation placed upon them last year, when the bill was under discussion in the radio committee. Since that time there has been a further depreciation and it is considered that a fair value to-day would be $50,000. That amount was arrived at by arrangement between the officials of the Canadian National Railways and those of the radio commission.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
LIB

James Malcolm

Liberal

Mr. MALCOLM:

I submit that the value of a station cannot be determined only by what it cost, less depreciation; there are other factors that should enter into the calculation. For example, a station has earning power. Businesses are sometimes valued according to their capacity to earn money, and if you are going to value stations regardless of that capacity and value them only at actual cost less depreciation, then I believe you will buy some very cheap stations when they are taken over. It should be understood by the house and by those who own stations just what the basis of calculation will be when stations are taken over in future.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
LIB

Pierre-François Casgrain (Whip of the Liberal Party)

Liberal

Mr. CASGRAIN:

Who fixed the amount of $50,000 for these stations? On what basis of calculation was that figure arrived at?

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
CON

George Halsey Perley (Minister Without Portfolio)

Conservative (1867-1942)

Sir GEORGE PERLEY:

The amount was fixed by arrangement between the Canadian National Railways and the radio commission after several weeks of discussion.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
LIB

Pierre-François Casgrain (Whip of the Liberal Party)

Liberal

Mr. CASGRAIN:

I understand then that the Canadian National Railways have decided to accept a considerable reduction, with the

4244 COMMONS

Radio-Purchase oj C-N.R. Stations

result that there will be a further deficit which the railways will have to register.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
CON

Robert James Manion (Minister of Railways and Canals)

Conservative (1867-1942)

Mr. MANION:

Perhaps I may be allowed to say a word in this matter from the railway standpoint; I may be able to add something to the discussion.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
?

An hon. MEMBER:

Hear, hear.

Mr. MANION; The proposal for the acquisition by the radio commission of these stations was not made at all by the government. The directors of the Canadian National Railways dealt with the matter and decided that the railways should get out of the radio business inasmuch as it was costing them $80,000 per year,-at least, that was what it cost in 1932. It might be of interest to put on record the figures showing the cost in other years. In 1931 the cost was, in round figures, $326,000; in 1930, $420,000; and in 1929, $441,000. I have the figures going back over previous years, but that was the highest, $441,000 in 1929, and last year the cost was $80,000. The Canadian National Railways, through the directors and management, came to the conclusion that they were not getting anything out of the radio business with a cost amounting in 1932 to $80,000.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
CON

Charles-Philippe Beaubien

Conservative (1867-1942)

Mr. BEAUBIEN:

Is that over and above the revenues?

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
CON

Robert James Manion (Minister of Railways and Canals)

Conservative (1867-1942)

Mr. MANION:

That is what it cost them.

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink
CON

Charles-Philippe Beaubien

Conservative (1867-1942)

Mr. BEAUBIEN:

In excess of the revenue?

Topic:   RADIO BROADCASTING
Subtopic:   APPROVAL OF PURCHASE OF CANADIAN NATIONAL RAILWAYS BROADCASTING STATIONS
Permalink

April 25, 1933