I ’ortlanii O bM T V iT
Cable TV challenges local officials
There'» « revolution com
•ng In the way people com
municate with each other
that could have a profound
• effect on m in o rity com
munitiea.
Hut unless local
offiriala in those communities
act soon, influence over how
this new means of communi
ration is used could pass out
of local hands and into the
hands of giant national cor
porations.
The revolution is called
cable television. Very simply,
it's a way of sending TV
signals through wires, rather
than
broadcasting
them
through the airwaves. It ran
be used either to improve
reception of existing T V sta
tions in distant areas, or,
more important, it ran be
used to transmit programs
exclusively on a cable net
work.
Why is cable important for
minority communities? Cable
television, a method of dis
tributing television signals
through wires, has a number
of unique features and caps
bilities as an information
delivery system and as an
economic and business de
velopment resource.
It's
potential is particularly great
for local urban development.
Cable has abundant chan
nel rapacity. Systems with
24 channels are now being
installed, and there is a
potential for up to AO chan
nets.
Moreover, two way
communication will be pos
sible from sender to receiver
and back, Cable T V can do
more than provide clearer
pictures of present television
programming; it can supply
specialized programs to small
audiences and shows of
special in te re s t to each
neighborhood. These locally
produred shows ran be es
perially lienefirial in counter
balancing the stereotyped and
c u ltu ra lly d e s tru c tiv e pro
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F IR S T N A T IO N A L B A N K O F O R EG O N
example, a local development
group wiring about one fifth
of Washington, D.C., or a
city about the size of Louis
ville, Ky., with about 00,000
homes, would need several
hundred thousand dollars of
venture capital costs coming
from loans and retained earn
ings.
W ith 25,000 sub
acribers the company could
generate $150,000 income a
month.
Cable economics are par
ticularly attractive for inner
city neighborhoods because
of the high population den
sities. One mile of cable in
the city can pass as many as
350 potential customers, un
like the rurrent system aver
age of about 100 homes in
the more scattered homes of
the suburbs.
Unlike other
business ventures, cable does
not need expensive offices,
rentals, uncongested streets
or plentiful parking.
W hat is the role of elected
officials? Before a cable sys
tem can begin operation, it
must receive a permit or
franchise from a government
authority, generally the city
council.
The Federal Communica
tions Commission sets cer
tain m inim um standards
which any city's regulations
must meet.
These cover
such matters as public par
ticipation in the process of
aw a rd in g franchises; con
struction schedules; duration
of the franchise; rates and
rate changes; handling of
service complaints; and rea
sonableness of fees charged
to companies awarded a fran
chise.
H o w e v e r, local govern
ments retain the basic author
Should the city have one
cable operator or several?
In general, minority owners
benefit when a city grants
more than one franchise,
each covering a specific sec
tion of the city.
This has
financial, operational and poll
tical advantages, and makes
possible some competition.
Divising the city into cable
zones aides minority appli
cants. The segregated hous
ing patterns of most cities
tend to concentrate minori
ties into a few zones. Any
operator who proposes to
serve this area knows that
his success will depend on
his service to the minority
community.
He must pro
vide programming, m arket
ing, consumer relations, and
general public service geared
to the minority community.
He cannot afford merely to
utilize services and staff from
rural and suburban systems.
Finally, dividing the city
co ncentrates the political
clout of the minority com
munities. Although the mi
nority cable company and it's
community supporters may
not be the strongest group
city wide (except in such
cases as Washington), gen
e ra lly th e y w ill be the
strongest in their own area
and one of the most in
fluential groups throughout
the city.
Multiple districts also are
a benefit from the regulatory
sta nd p oin t.
C o m p arative
costs and services would be
available by which to judge
requests for rate increases,
details on service expansion,
and other proposals. This is
similar to the practice of
federal and stale regulatory
ity to decide who will be agencies in using T V A as a
granted a franchise and what yardstick by which to mea
standards must be m et. sure rate requests of private
S p ec ifica lly, local govern
companies. The city's regu
ments are responsible for latory body would have a
delineating franchise areas; stronger position from which
selecting and sup ervising to enforce the rules if it were
study committees which may not dealing with one con
be formed to examine re glomerate.
With multiple
quests for franchises; inviting ownership, there would be
franchise applications; draft
less danger that a single firm
ing an ordinance regulating would overwhelm it's under
cable operations; selecting a staffed regulators, as A T & T
cable system operator or does to the Federal Com
operators; passing on the munications Commission.
adequacy and feasibility of
W hat other standards to
construction arrangements;
insure full minority participa
setting the length of the
tion should be;
The city
franchise; ap p ro vin g sub
should ask each applicant for
scriber rates, and setting
the firm's plans in the fol
franchise fees (within FCC
lowing areas:
guidelines!.
1. Use of local minority
F e d e ra l ju ris d ic tio n is construction contractors;
based on the FCC's power to
2. R e c ru itm e n t, tra in in g
re g u la te transm ission of
and employment of minority
broadcast signals.
Ixx-al
persons in system construc
jurisdiction comes from the
tion and system operation;
right to regulate use of
3. Purchase of goods and
public stre e ts and ways services from minority busi
through which cable lines are
nesses;
strung or laid.
4. Deposit of co rp o rate
This local authority must
funds in minority banks;
be exercised with care and
5. Methods of determining
planned to insure that the
the com m unications needs
city and minority interests
and program preferences of
are well provided for. Spe
Black, brown and poor com
cial attention must be given
munities; and
to certain key decisions.
6. M ethods of deciding
Local o w n ersh ip means
which information services
that funds created by the
that can be provided to
cable system will stay in the
m in o rity com m unities via
community.
Funds will go
one-way and two-way cable
into local banks, buy local
delivery systems.
services, and be reinvested
Acceptable plans should be
in the local system.
It's
made a part of franchise
profits will be shared by
applications and agreements.
local residents.
There is a
In February, 1973, the
greater possibility that job
Urban Mass Transit Author
opportunities and other busi
ity placed similar require
ness services will be pur
ments into effect for the
chased from community resi
development of urban mass
dents. Resident owners will
tra n s it system s.
C ities
have a greater knowledge of
should follow this precedent
community needs and will be
in planning and developing
more accountable to the com
local cable television systems.
munity.
Black, brown and poor
Though most large cable
communities comprise a sub
companies p ro vid e some
stantial portion of the urban
ownership participation for
cable market.
Millions of
local residents, it is usually
dollars in subscriber fees and
on the basis of 20 percent for
special service and program
local individuals and 80 per
ming fees will be paid to
cent for m u ltip le system
cable systems by these com
operators (MSO).
These
munities.
Cities would do
nationwide firms, such as
well to channel these pay
TeleProm pTer, are involved
ments into self help economic
in practically all the cable
development resources that
systems installed so far. The
flow back into these com
local citizens provide the
munities.
community knowledge and
political influence necessary
This article was prepared
to gain the franchise.
The
by Charles Tate, executive
MSO supplies the capital and
director of the Cablecom
technical expertise, and main
munications Resource Cen
tains full operating control
ter. 1900 L Street N .W .,
once the franchise is granted.
Washington, D.C. 20036.
This typical pattern pro
vides virtually no ongoing
local invq^fement except in
the bank accounts of a few
prominent individuals.
The Black labor force con
The MSO, whose major
tinued to expand in the 1972
responsibility is to it's over
reaching 9.6 million on an
all balance sheet and public
annual average basis, accord
stockholders, may use the
ing to the U.S. Department
rash flow to expand it's oper
of Idibor.
ation in other cities.
g ram m in g th a t broadcast
television now offers Black
and brown communities.
As an information tech
nology it offers an efficient
delivery system for public
services.
Present federal
rules require at least one
channel each for educational
and government use. How
ever, the potential to deliver
education, health and em
ployment information, traffic
and police communications
and other services, especially
w ith tw o way in te ra c tiv e
cable, is nearly boundless.
('able also has a very at
tractive economic develop
ment potential, especially for
underdeveloped urban com
munities.
It attracts sub
stantial outside capital, in
duces local investment, in
creases local money supply
with it's large rash flow, and
provides new jobs, contracts
and a variety of spinoff
business opportunities. For
T I i u i m I. i v . Juh
12. I9 i .
Guyana elects new government
Voters will go to the polls
to select a new government
for Guyana, the second since
it's independence from Bri
tain in 1966, on Monday.
July 16. Guyana, the former
B ritis h Colony of B ritish
Guiana attained it's mdepen
dence in May 1966 and be
came a Republic on February
23, 1970. The last election
was held in 1968.
Guyana is the only English
speaking co u n try on the
mainland of South America.
The last national elections
were held in 1968 when
Forbes Burnham (the cur
rent Prime Minister) and the
People's National Congress
(P N C ) d efeated P re m ie r
Cheddi Jagan of the People's
P ro g res sive P a rty (P P P ).
The two are expected to be
opponents again next month.
Burnham is a Socialist and
Jagan is a Marxist.
Burnham's PNC won a
substantial victory in the
1968 election under the
country's system of propor
tional representation insti
tuted by the British shortly
before Guyana gained inde
pendence.
Burnham had until March
1974 to call new elections but
has decided to seek a man
date at this time, before the
Commonwealth Conference to
be held in Ottawa. Canada in
August, and a Non Aligned
Conference later in the year
at Algeria.
The Constitution of Guy
ana provides for a sovereign
democratic Republic of Guy
ana, with a president as the
constitutional head of state
(currently President A rthur
Chung).
There is a Prime
Minister and a Cabinet re
sponsible collectively to the
N a tio n a l A ssem bly, which
consists of 53 m em bers
elected by secret ballot under
a system of p ro po rtio nal
representation.
The voting
age is 21. (A recent govern
ment proposal to lower the
voting age to 18 was not
supported by the Opposition).
Guyanese who reside and/
or are citizens of other coun
tries are still eligible to vote
in the Guyana elections.
The largest racial groups
are East Indians labout 398,
000), Blacks labout 238,000).
and there are some 10,000
Amerindians.
There are
also 4,000 Europeans in
Guyana's total population of
760,000.
I t is estimated that 86°o of
the total population in Guy
ana is literate.
Primary
education is free and secon
dary education is increas
ingly in reach of all.
The
University of Guyana was
established in 1963 and
awarded it's first degrees in
1967.
The three major industries
are sugar, rice and bauxite.
Since these three contribute
Guyana is a m em ber id the
U nited Nations, and has (Hi
server status in the Organi
zation ol A m erican Slates
IDAS I.
(iuyana is considered one
of the
Big Four" of the
f aribhean. along with Jamai
ea. Barbados. Trinidad and
Tobago, although it is located
on the Northeast coast of
South America.
Guyana is one of the mem
bers of the new Caribbean
Economic Community, which
begins August 1, 1973. and is
designed to economically in
tegrate Caribbean countries.
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LAWYER X
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Upped Check
M artin bought a secondhand
motorcycle
from
a
friendly
stranger, giving him a check for
“ eight hundred dollars."But when
he got the check back from the
bank at the end of the month, it
had been upped to “ thirty eight
hundred dollars.”
Martin decided that the bank
had no right to take the extra
$3,000 out of his account.
" I t ’s not my fault the fellow
was crooked," he argued in a
court hearing. “ Let the bank try
to collect the difference from
him .”
But the bank pointed out that
M artin had made three careless
mistakes in writing the check:
the most recent, largest
attended Non Aligned Con
ferenee.
In recent months, in aildi
tion to it’s free world diplo
malic relations, has estab
lished dip lom atic relation s
with the People's Republic of
• hina, Cuba, East Germany.
Poland and Russia.
over one third of the nation's
Gross Domestie Product and
employ about a quarter of
the working population, they
largely set the pace of eco
nomie activity in the country.
Significant in the past few
years of Guyana's desire to
control it's natural resources,
the Government negotiated a
purchase of the Aluminum
Company of Canada's (A L
C A N ) bauxite operations, for
an estimated $53 million.
Guyana has been running the
operation, known as the Guy
ana Bauxite Company Ltd.
(G i'Y B A L ). successfuly and
in it's first full year returned
a profit of $13 million.
(iu y a n a has become a
moving force not only in
Caribbean affairs, but in the
Non Aligned Movement, or
the Third World" countries.
Guyana was the host for the
first Caribbean Festival of
the Arts, and was the site of
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1) he had failed to 611 in the
payee's name;
2) he had failed to 611 in the
numbers after the dollar sign; and
3) he had left more than an
inch of open space in front of the
word "eight” plenty of room for
inserting the word "th irty.’’
The court concluded that M a r
tin, by his negligence, hud invited
the tampering hence,would have
to bear the loss himself.
O f course, as a general rule, a
bank has no right to pay any more
money out of your account than
you have authorized. The bank,
after all. has the best opportunity
to detect fraud by examining a
check before cashing it.
But the law will usually shift
the loss to you if, by your care-
lessnes. you have made the check
easy to alter.
Furthermore, you have a duly
to go over your cancelled checks
within a reasonable time after
thev are returned, and In alert tlie
hank if something is amiss.
For example
A man whose signature had
been forged on a check had Io
absorb the loss himself because
he neglected, for almost six
months, to let the hank know
what had happened.
A court said that by bis pro
crastination, he had deprived the
bank of a fair chance to track
down the villain.
A p u b lic s e rv ic e f e a t u r e o f th e
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