Mr. MANION:

That is the statement as it was given to me. The directors, as I say, decided to get out of the business and they approached the radio commission. It is true, as has been pointed out, that these stations tost $132,000, but that was some years ago, and the directors of the Canadian National decided that, taking depreciation into account as well as the cost per annum, it was wise for them to give up the business. They therefore approached the radio commission and after some negotiation the figure of $50,000 was decided upon, with which they were perfectly satisfied. They point out as well, in the statement they have made in regard to the matter, that the whole staff of the Canadian National radio broadcasting division has been taken over by the Canadian radio commission. They consider that they have made a very good deal in getting rid of their radio broadcasting facilities by selling them to the radio commission.

Mr. LAPOINTE:

May I ask the minister whether the Canadian Pacific Railway is also going out of the radio broadcasting business?

Mr. MANION:

I am afraid my hon. friend will have to ask the Canadian Pacific Railway.

Mr. LAPOINTE:

I see.

Mr. MANIO'N: I do not know what they will do, but we are vitally interested in the Canadian National Railways. What the Canadian Pacific Railway does with its private affairs is entirely its business.

Mr. ELLIOTT:

By whom was the appraisal made as a result of which the sum of $50,000 was accepted?

Mr. MANION:

I do not think it was done as a matter of appraisal but, as the acting leader of the house has said, as a result of negotiations.

Mr. ELLIOTT:

Without appraisal?

Mr. MANION:

Just as any other group wishing to sell something to someone else would negotiate with the other parties who wanted to buy, so was it in this instance. Did I understand my hon. friend from Quebec East to say that the Canadian Pacific Railway was going out of the radio business?

Mr. LAPOINTE:

No; I was merely asking whether they were going to go out of it.

Mr. MANION:

As the hon. gentleman sat down I thought he said they were.

Mr. LAPOINTE:

I don't know; I am

simply asking for information.

Mr. CASGRAIN:

They will have the

advantage over the Canadian National Railways.

Mr. MANION:

I do not think it is an

advantage but a disadvantage.

Mr. EULER:

It seems to me there is a

very important principle involved in the buying of stations. The right hon. gentleman a moment ago said that the price was fixed at $70,000 by the radio committee last session. I happen to have been a member of that committee and I am sure that the committee itself set' no values on any stations whatever. Possibly values were brought in by the engineer's of the radio branch of the Department of Marine. The point I desire to make is this. I have no fault to find if the government allows nothing for goodwill; in fact, I think there is an element of danger in the future acquisition of radio stations, and I believe it was pretty definitely brought out and established in the proceedings of the radio committee last year that no amount should be allowed for goodwill for the very good reason that all radio stations were operated under licence, and the licence

Radio-Purchase of C.NR. Stations

expired in all eases within the year, so that no goodwill was established. It was pretty definitely laid down and perhaps was recognized that in the purchase of these stations no private owners of radio stations should expect to be paid for goodwill, no matter how profitable their stations may have been. I think that the government in future purchases of radio stations should definitely and absolutely bear in mind that when they buy stations they should pay nothing for goodwill, because that was the understanding in the radio committee last year, and it is important.

Mr. CASGRAIN:

I think there is a great

principle involved in this matter. When the Canadian National Railways a few years ago embarked on the policy of radio broadcasting this policy was criticized a good deal by hon. gentlemen opposite when they were on this side of the house. At that time they said it was not right, that it was going to cost a lot of money. To-day we find that these same hon. gentlemen now that they are in office are trying to go out of the venture and to turn it over to the radio commission. As pointed out by my hon. friend from Quebec East, the advantage that is to be derived from the radio will all accrue to the Canadian Pacific Railway. That company will have the advantage of the operation of stations which they built and which they will continue to run in the future. By means of this legislation the administration is putting the Canadian National Railways in a most disadvantageous position as compared to the Canadian Pacific Railway. The Canadian Pacific will have an advantage over the Canadian National. It is by such tactics that the government is curtailing the activities of the Canadian National Railways. I think this resolution should be considered most carefully as it seems to me to be a step in the wrong direction and one which will enure to the benefit of a competitor of the Canadian National Railways.

While I am On my feet I should like to ask the leader of the government if it is the intention of the government to take similar action in connection with stations operated by private individuals and companies. I refer particularly to the station operated by La Presse, to station CFCF and to the station recently licensed and operated by La Patrie. Is it the intention of the government to take over these stations and, if so, what basis of valuation will be used?

Sir GEORGE PERLEY:

Will the hon.

gentleman tell me where the broadcasting stations of the Canadian Pacific are located?

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Mr. CASGRAIN:

I do not know where they are but if I am not mistaken an offer was made to the committee which was discussing this matter last year. A proposition was put forward by this railway to the government for the taking over of their broadcasting stations.

Mr. MORAND:

I do not think any better example of an attempt to make political capital out of these broadcasting stations could be found than that which is evidenced right now.

Hear, hear.

Mr. MORAND:

Hon. gentlemen opposite must realize how ridiculous is their position. The Canadian Pacific Railway own no broadcasting stations and they had none last year when the committee was sitting. They have a phantom call letter which they use through other stations but they are not in the broadcasting station business. An effort has been made to show that one railroad is being discriminated against. It is nothing more than an effort to make political capital out of this matter.