Board of Broadcast Hearings (Prince Rupert 1965)

Carbutt Collection

M.C. Mr. Chairman
B.G. Broadcast Governors
M.P. Mr. Peterson

M.P. Mr. Webber mentioned the fact that as far as shares were concerned that the Board is being present in many cases with transfer of shares and I believe at the last hearing Mr. Webber himself was a party to a transfer of shares. Whether or not he can use this as an example of the fact that we ourselves have so many local shareholders and hold this against us I donít know. I know that DV in Smithers has a good number of shareholders and they have note to had no trouble within the two years of operation against their shareholders, we donít expect any ourselves. The type of shareholder we have, as I mentioned before, are stable citizens of Prince Rupert. They would have no reason to want to let their shares go into, away from a company such as ours, because they feel with this they have a control of the network that we would propose to be in Prince Rupert and they would feel they have a feel in the heartbeat of the station concerned. This low investment that Iíve mentioned of these various shareholders in Prince Rupert, believe you me, we had a difficult time as it was to prevent more people from trying to get into it. As a matter of fact nearly everyday in the street I had occasion where people asked me, ďCan I still buy into your company?Ē and I had to refuse them by virtue of the fact that the shares were all sold. We did not originally intend to make the share holding so low but we had to do it because we were besieged by offers by people who wanted to come into it, to belong to it, to be a part of this organization. The control of our company is by Board of Directors, Mr. Chairman, not by a single man. There are five in all, all local men, all local citizens who will sit as a Board of Directors to control the operations of our group. Theyíre all businessmen, the four principal people concerned and our lawyer who will look after the operation of the station. Mr. Webber claims that he still may move to Prince Rupert and I canít understand his thinking in not coming here in the first place or to Prince Rupert in the first place.

We are by far the largest area in the center, we offer the most, we have the best possibilities but one of the things that we do not have unfortunately, and I hope this doesn't get back to our Chamber of Commerce since they will probably wreck me for it, is our weather. So many people come to Prince Rupert, make a good living, get a little money together and then they say, ďWell that's the last you'll see of me,Ē and they leave and get a job somewhere else. For those of us who stick it out and get webbed feet by so doing we manage to enjoy ourselves. We have many, many good things in Prince Rupert, local clubs and what not. We shrug the rain off, we don't think anything of it and it may be one of the reasons why Mr. Webber didn't come here was because of the fact that Terrace does have a lot better weather than what we do.

Mr. Webber mentioned also the fact that he is putting up hard cold cash for his station. He didn't mention that he had established certified cheques as I was asked to the operation of his business. I don't believe myself that he or even his proposed company is formed yet or even has the company put up any money. We ourselves are investing hard cold cash. The monies that I myself and all the directors are putting up is actual hard cold cash that they are using. Anything that is promotional is for services only, just for services. There is nothing promotional as far as giving people something just to belong to our outfit. If they work for it they can have it. If they don't work for it they don't get it. Either that they have to put up the hard money for it.

Mr. Chairman, Mr. East through his experience claims that six can operate our proposed station. Mr. Webber claims it can't. I mention in our brief, and I could refer you back to it if I wish, that we would increase our staff as required. We do not plan to over-expand the beginning services of our inauguration as far as the business is concerned. We have to start small, we have to crawl before we can walk. Any station has to do that or any business has to. If we find that after a year's operation we require another member on our staff we'll be the first person to put it in. We must have an efficient operating staff but Mr. East who is experienced says that it can be done in six and we believe him. We've discussed this thoroughly, we've gone over time and time again, we have good working personnel. There's no reason why six can't do it to begin with. That as the station business increases we can go to seven and eight and nine etc.

I suppose, Mr. Chairman, there are other things that I should mention. I don't think perhaps I should at this time by virtue of the fact itís getting close to the dinner hour and I'm sure you've certainly heard enough. I'd like to repeat as I've done before that if the height of broadcasting corporation or the company limited is granted a license to operate in Prince Rupert we will certainly cooperate with Mr. Webber in his venture as far as a T.V. studio is concerned. I mentioned it at the last hearing of the board, I've discussed it with the members concerned. I know this is a necessity in Prince Rupert although we don't presently have it and we enjoy our television immensely when itís on the air. We get local programming as it is because the citizens of Prince Rupert go to Terrace and appear on the Terrace television station and we naturally receive it and consider it live. But, if Mr. Webber plans on putting a T.V. studio in Prince Rupert we will be more than glad to help him. If he requires more staff an arrangement will have to be made out whereby he can have that more staff or he can bring his own staff down and use them in conjunction with ours. Some arrangement can be arranged but I know very well that we will cooperate with him one-hundred percent in doing this.

Our treasurer, not our secretary, our treasurer has brought to my attention the fact that Mr. Webber was mentioning the revenue as far as the station was concerned. The gross sales for retail sales for Prince Rupert as mentioned in my supplementary brief are thirty-three million dollars as far as the city as Prince Rupert alone is concerned. Thirty-three million dollars I believe gives ample room for advertising dollars. Working on a three percent basis as far as national advertising and whatnot is concerned to allow CBC to operate, our local radio stations to operate, T.V. to operate and the daily newspaper to operate. This in itself would allow each and everyone of them to make a progressive living on the subject concerned. It will also allow Mr. Webber to increase his present revenue, which I understand has gone up tremendously in the last few months and I understand now it is approaching the area or has already approached the area where he originally was at a maximum or he originally is asking his staff to produce. I can't reveal figures in this because I'm not in a position to give information on Mr. Webber's station but I understand he's very well on it. Our revenue we asked for in a brief that we quoted from, the brief was only seventy-two, five hundred whereas Mr. Webber quoted in his brief eighty-one, six-hundred. There's a difference between the two, we feel that we are well within the limits of our revenue. I don't think I should take anymore of your time Mr. Chairman. Is there any other questions I may answer for you?

M.C. No questions (unintelligible). Thank you.

M.P. Thank you sir.

B.G. Mr. Peterson we have three more applications I think on the agenda and I don't want to rush these so I think we should take a luncheon break and re-convene but is there anybody who would be inconvenienced if we did this? All right could we cut down the time of the luncheon? Reconvene at two-fifteen.

B.G. Mr. Chairman the first application this afternoon is from Drumheller, Alberta. Change of frequency is station CHCT.