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CANADIAN COMMISSION TILL CLOSE NO STATIONS
The Canadian Radio Broadcasting Commission, as the first step in a series of drastic changes in the broadcasting system there, will limit radio advertising in Canada to five per cent of the time.
"Our system, as defined in the Act of Parliament, dif¬ fers from that of the British Broadcasting Corporation, which eliminates advertising altogether", Chairman Hector Farnsworth, of the Commission, advises. "So long as Canadians can turn on United States stations at will it would be unfair to Canadian commerce to exclude its announcements from the air, but adver¬ tising will be limited to five per cent of the time occupied by the broadcast and a rigid supervision as to its character will be maintained.
"We will not have complete control of stations until after March 31, when all existing licenses expire. The act gives us power to expropriate and close stations and build a series of highpowered stations across the continent to be operated by ourselves, but in view of present financial condi¬ tions, I do not think we will embark on so large an undertaking for some time to come.
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"For the present we will probably endeavor to lease time in bulk at reasonable rates from the land line companies and go extensively into sponsored programs on our own account utilizing Canadian artists, of whom a large number of fine quality are unemployed", the Canadian radio chairman continues.
"The most serious problem with which we have to deal is that of land-wire costs, which have militated very serious¬ ly against the private broadcaster. We axe using all the
influence we can bring to bear to secure a solution of this problem and to induce the land-wire companies to act with us.
"We also hope to establish cordial relations with the National Broadcasting Company and Columbia system and to secure the best of their own sustaining programs for distribution through Canada", Chairman Farnsworth concluded.
The Canadian act states that the Commission "shall have power to carry on the business of broadcast ing in Canada".
It may make operating agreements with private sta¬ tions for the broadcasting of national programs, acquire exist¬ ing private stations either by lease or, subject to the ap¬ proval of Parliament, by purchase, a,nd may construct new stations subject to the approval of Parliament. It may originate pro¬ grams from within or outside Canada, by purchases or exchange, and make necessary arrangements for their transmission, and make contracts with persons for performance in connection with pro¬ grams originated by the Commission. Finally, it may take over all broadcasting in Canada, subject to the approval of Parliament .
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