Code of fair competition for the radio broadcasting industry

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Material Information

Title:
Code of fair competition for the radio broadcasting industry as approved on November 27, 1933 by President Roosevelt
Portion of title:
Radio broadcasting industry
Physical Description:
1 p., 353-364 p. : ; 23 cm.
Language:
English
Creator:
United States -- National Recovery Administration
Publisher:
U.S. G.P.O.
Place of Publication:
Washington
Publication Date:

Subjects

Subjects / Keywords:
Radio broadcasting -- United States   ( lcsh )
Genre:
federal government publication   ( marcgt )
non-fiction   ( marcgt )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
Approved Code no. 129.
General Note:
Registry no. 1742-09.

Record Information

Source Institution:
University of Florida
Rights Management:
All applicable rights reserved by the source institution and holding location.
Resource Identifier:
aleph - 004930990
oclc - 31966363
System ID:
AA00008421:00001

Full Text



Code N, 120 Br iant No. 17142---09


i;; I NA'IIONAL RECOVERY ,AI)MINIST(ATIO















BY;

CODE OF F E QR C~MRYIL~O

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2.E Lette of Trnsit





INUNTDSTATE

i dS APPROWASHIN TON:BE 193393




















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TIhis publication is for sale by the Superintendent of Documents, Government
Printing Oflice, Wa~shington, D.C.,'and-by district ofices of the Bureau of Foreign
and Domestic Commeree.
DISTRICT OFFICES OF THE DEPARTMENT OF COMYMERCE

Atlanta, Ga.: 504 Post Offlee Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 180,1 Customhlouse.
Buffalo, N.Y.: Chamber of Commerce Building.
Charleston, S.C.: Chamber of Commerce Building.
Chicago. Ill.: Suite 1706O, 201 Northi Wells Street.
Cleveland, Ohlio: Cham~ber of Comulerce.
Dallas, Tex,: Chiamber of Commerce Building.
Detroit, blich.: 221.3 First National Banki Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fin.: Chamber of Commerce Building.
Kansas City, M~o.: 1028 Baltimore Avenue.
Los Angeles, Calif: 1163 South Broadway.
Louisville, Ky.: 408 Federal Building.
Mermphis, Tenn.: 229 Federal Building.
Mlinueap~olis, Mlinn.: 213.Federal Building. .-'
New Orleans, La.: Room 225-A, Customp~t~sy,
New York, N.Y.: 734 Cu~stombouse. 1 '
Norfolk, Van.: 4106 East Plume Street.
Philadelphia, Pa.: 933 Commercial Trust Buitding.-
Pittsburgh, Pa.: Chamber of Commuerce.Building.
Portland, Oreg.: 215 Newv Post Office Building.
St. Lduis, nIlo.: 500 Olive Street. ... .. .
San Francisco, Caflif.: 310 Customhouse.
Seattle, W~ash.: 800 Federal Building.













Approved Code No. 129


CODE OF FAIR COMPETITION
FOR THE

RADIO BROADCASTING INDUSTRY

As Approved on November 27, 1933
BT

PRESIDENT ROOSEVELT





Exe cu tive Order
An pplcaton avig ben ulymade, pursuant to and in full
compliance with the provisionsoftleIfthNtinlndsra
Recovery Act, approved June 16, 1933, for my approval of a Code of
]Fair Competition for the Radio Broadcasting Industry, and hear-
ings having been held thereon and the Administrator having ren-
dered his report containing an analysis of the said code of fair com-
petition together with his recommendations and findings with respect
thereto, a~nd the Administrator having found that the said code of
fair competition complies in all respects with the pertinent provi-
sions of title I of said act and that the requirements of clauses(1
and (2) of subsection (a) of section 3 of the said Act have been met:
NOW, T"HERE~FORE, I, Franklin D. Roosevelt, President of the
United States, pursuant to the authority rested in me by title I of the
National Indust~rial Recovery Act, approved June 16, 1933, and
otherwise, do approve the report and recommendations, and adopt
the findings of the Administrator and do order that the said code of
fair competition be and it is hereby approved.
FRANKELIN D. ROOSEVELT.
Approval recommended :
Husan S. JoaNson,
Adm1in~istr~ator.
THE WHITE HOUSE,
November 97, 1933.
(353)


28778"--244-97--33












NOVEMBER 23 .98$.
The PRESIDENT,
The~ Wh'ite! Hou~se.
SmR: A proposed Code of Fair Competition for the Radio Broad-
casting Industr~y was submittedd to the Administrator on August 29,
1933, by the National Association of Broadcasters, Inc. The Asso-
ciationl is an established trade association of long standing and is
the only trade association in the Industry. It represents approxi-
mately forty-five (45%0) percent of the stations by numbers and
over eighty-three (839o) percent of the volume of business done
within t~he Indust ry.
A Hearing wras coxnducteed in W~Sashington, D.C;., on September 2'7,
1933, and the Code was revlised during the recess of this Hearing and
is submitted in its present form for approval. Every person who
requested an appearance was heard inl accordance with statutory and
regulatory requ~ir~ements. Communication s received from interested
parties who had not requested to be heard were read into t~he record.
Radio Broadcastinlg in its present form is a comparatively new
development. It. embraces the complete operation of all stations
or netwonr~ks dePigined for broadcansting including, in connection with
such operations, the preparation andi production of programs both
sponsored and unsponsored for the purpose of providing entertain-
ment, instruction, and general service through the agency of radio
broadcasting.
A~RrCLE III-HNouns

This Article provides that no employee shall be permitted to work
in excess of 40 hours in any one week, except that such hourly limi-
tations do not apply to employees in managerial or executive capacity
who receive not less than $35 per week in the larger stations, nor to
the same class of employees who rceiv-e not less than $25 per week
in radio broadcasting stations in which, on July 1, 1933, not more
than ten persons wer~e regularly employed. Further, such hourly
and daily limitations do not apply to employees on emergency main-
tenance or emergency repair wrork, but overtime is to bde pai~d for
hours worked in excess of the maximum. Broadcasrt technicians are
permnittedl to workc 48 hours per w~eek. Regarding this class of
employees there was a lack of reliable statistics covering thec number
of hours which thley now work, and faced with this lack of statistics
it was d-leemedl necessary to allow a 48-hour week pending the report
of the Code Aluthority on a study to be madle within ninety (90)
days. Thie hours of sulch employees now vary from a minimum of 36
hours to a2 maximum of over 80. Approval of a 48-hour week for
the next. ninety (00) days has been given by t~he Advisers to the
Deputy.
Those stations w~hichl now op~erate on the bansis of a lesser number of
hours per w~eek are limited to those hours and mnay not increase their
(354)






355


working week for broadcast technicians to 48. Overtime is not per-
mitted within the Industry except in the case of an emergency
worker.
It is the first time within the Industry that there has been a classi-
fication of workers, minimum rates of pay, or maximum number of
hours of employment. The reduction in hours will require the re-
employment of some 765 men, or an increase of 350 men over the
total employed within the Indust~ry for any previous period.
AnnOCLE IV-WAGBES

Nontechnical employees are guaranteed the wages provided in the
President's Reemployment Agreement. The guaranteed wage for
broadcast operators and control men varies in amount according to
the Federal Radio Commission classification of the station by which
they are employed, as follows:
(a) Clear channel or high-power regional stations not less than
$40 per week;
(b) Clear channel part-time or low-power regional stations not
less than $30 per week;
(c) Low-power part-time regional, local unlimited, or local part-
time stations not less than $20 per week. Such employees in the
past have been paid as little as $9 per wceekr in some of the small
stations. Announcers and program production employees are to
receive not less than $20 per week, except in the very small stations
where they are to receive not less than $15.
The employers agree not to reduce the compensation for employv-
ment now in excess of minimum wages, notwithstanding that the
hours may be reduced, and to increase the pa~y for such employment
by an equitable readjustment.
There is no discrimination between the sexes in rates of pay.
ARrCLE V--GENTERAL LABOR PRovisions

No one under sixteen years of age is to be employed within the
Industry, except as talent on programs and then for not more than
three hours per day, and those hours to be such as will not interfere
with school hours.
This Article embodies Paragraph (a) Section 7 of Title I of the
National Industrial Recovery Act. It further provides that working
conditions shall not be changed to frustrate the intent and purpose
of this Code.
In the proposed Code there is constitu'ted a named Code Author~ity
of nine (9) comprising representatives of independent stations, the
Special Adviser, the Industrial Adviser, and the Labor Advijser
on the Code, two representatives of the broadcasting networks, and
in addition not more than three members to be appointed by the
Administrator. The members of the Code Authority, with long
experience andn tra~iningr within the Industry, were namedl so that
there migrht be no de~lay in institulting the investigations which are
required of that body, and in making recommendlations to the AQd-
ministrator for a permanent form of organization for the admlin-
istration of the Code.






356


ECONOMIC EFFECT

The provisions of the Code will require reemployment of 765i men
and will increase existinga pay rolls and the buying power of this
group at the estimated rate of $1,328,000 per year. The total pay
rolls under the Code will be more than double those of 1929. More
stations are now in operation and more individuals employed than
there were in 1929. M~y information indicates that there will be no
increase in rates charged for facilities, so the consumer should not
be adversely affected. The Industry will be requuired to absorb the
greater operating costs.
The Research and Planning Division reports that the Code is
designed to improve conditions in the Radio Broadcasting Industry,
and that they are satisfied with the Code as it stands.
FINDINGS

Thie Administrator finds that:
(a) This Code complies in all respects with the pertinent phrases
of Title I of the Act, including wFithnout limitation, subsection (a) of
Section 7, and subsection (b) of Section 10 thereof;
(b) The Committee which proposes the Code is truly representa-
tive of the Radio Broadcasting Industry, and the By-Laws of the
Association representing the divisions thereof provide no inequitable
restrictions to membership;
(c) The Code is not designed to promote monopolies or to elimi-
nate or oppress small enterprises and will not operate to discriminate
against them, and will tend to effectuate the policy of Title I[ of the
National Industrial Recovery Act.
It is recommended, therefore, that this Code be approved.
Respectfully,
HUan S. JoNwsoh',
Adm~inistrator.,











FOR THE

RADIO BROADCASTING INDUSTRY


ARTICLE 1--FORPO8ES

To effectuate the policy of Title I of the National Industrial
Recovery Act, the following provisions are submitted as a Code of
Fatir Competition for the Radio Broadcasting Industry, and upon
approval by the President shall be the standard of fair competition
for such IndustryT and shall be binding on every member thereof.

ARricu: II--DEFINITIONS

1. Radio Broadcasting, as used herein, means the transmission
through space by means of any radio frequency of signals intended
to be received, whether audibly or visually, directly byT the public.
2. Radi'o Broadcastting Indurstry, as used herein, embraces the com-
plete operations of all broadcasters, or networks designed for broad-
casting as above defined, including, in connection with such opera-
tions, the preparation and production of programs, both sponsored
and unsponsored, for the purpose of providing entertainment, in-
struction, and general service through the agency of radio broad-
casting.
3. Broadlcaster, as used herein, means any individual, partnership,
corporation, association, or other form of enterprise engaged in the
radio-broadcasting industry as above defined.
41. Netw~orlk, as used herein, means any individual, partnership,
corporation, association, or other form of enterprise in t~he business
of regularly supplying, by wire or wireless, programs for broadl-
casting, simultaneously to two or more radio-broadcasting stations.
5. Employee, as used herein, means any person engaged in the
industry and employed by a broadcaster or network at a regular
hourly, daily, weekly, or monthly salary or wage, as distinguished
from an independent contractor or a professional person who is paid
by the job or performance.
6. Emzployer, as used herein, means any broadcaster or network
engaged in the industry.
7. Broadcast Technzicia~n, as used herein, means any person ent-
ployed for the operation or maintenance of any transmitting, control,
or input equipment used in radio broadcasting.
8. A;ct and Adnu'lnistratorl, as used hlerein, mean respectively Title
I of the National Industrial Recovery Act and the Administrator for
Industrial Recover~y.
ARTICLE ~III-Houn~s
1. No employee shall beC permi',ted to work~ in erxcess of forty
hours in any one ~eekc, ecsept those included in the classes enumier-
ated in paragraph number two hereof.
(357)


CODE OF FAIR COMPETITION






358


2. The maximum hours fixed in the foregoing paragraph number
onhe shall not apply to:
(a) Employees in a managerial or executive capacity (including
announcers, production men, and chief operators) who receive more
than thirty-five dollars per week; employees mna managerial or
executive capacity (including announcers, production men, and chief
operators) who receive more than twenty-five dollars per week in
radio broadcasting stations in which on July 1, 1933, not more than
ten persons were regularly employed.
(b) Outside salesmen.
(c) Employees on emergency maintenance and emergency repair
work but at least one and one-half times the normal rate shall be
paid such employees for hours worked in excess of the maximum
hours provided in Section 1 of this article.
(d) Broadcast 'Technicians, with respect to whom the .maximum~
hours of work shall not exceed forty-eight hours per week.
(e) Persons employed on special event programs of public interest,
with respect to wihomi the maximnum hours of wor~k shall not exceedl
the number of hours herein prescribed for their class of work aver-
aged over any six weeks' period.
AIRTICLE ITY- VAGrES

1. No employee, except those enumerated in paragraphs (a), (b),
and (c) hereof shall be paid at less than the weekly rate of fifteen
dollars per .week in anly city of over 500,000 population or in the
inulnedfiate~ retail trade area of such city; or at less than the rate of
fourteen dollars and fifty cents per week in any city of between
250,000 and 500,000 population or in the immediate retail trade area
of such city; or at less than the rate of fourteen dollars per week
in any city of between 2,500 anid 250,000 population or in the imme-
diate retail trade area, of such city'; or at~ less than thle rate of twelve
dollars per week in any town or place of less than 2,500 population.
Population for the purpose of this Code, shall be determined by the
1930 Federal Census.
(a) Broadcast operators and control mnen shall be paid at a rate
of not less than forty dollars per week when they are employed at
any radio broadcastinng station classified by the Federal Ra~dio Com-
mission as a clear channel or high-power regional station; or at a
rate of not less than thirty dollars per week when they are employed
at any broadcasting station classified by the Federal Radio Com-
mission as a clear channel part-time or low-power regional station,
unless such station on July 1, 1933, regularly employed not more
thanh three broadcast operators and control mnen, in which case the
rate of pay shall be not less than twenty dollars per week; and at
a rate of not less than twenty dollars per weeek at any broadcasting
station classified by the Federal Radio Commission as a low-power
part-timer regional, local unlimited, or local part-time station. Emz-
ployers shiall be entitledl to empl~oy as apprentices persons learning
the technique of radio broadcasting control andl transmission. Such
appr~enticeship within the Industry shall not exceed a cumulative
period of t~rwelve months. The number of persons so employed, if
mnore than one, shall not exceedl five percent of the total number of





359


regular employees of each employer. The rate of pay of apprentices
shall be not less than twelve dollars per week.
(b) Announcers and program production employees shall be paid
at a rate of not less than $20 per week, except that where a broad-
caster regularly employed not more than ten persons on July 1, 1933,
such announcers and program production employees mzay be paid not
,.. less. than $15 per week.
(i)! The minimum rate of pay herein provided shall not apply to
outside salesmen working on commission only.
2. Employers agree not to reduce the compensation for emply
ment now in excess of the minimum wages hereby agreed to(ot
withstanding that the hours worked in such employment may be
hereby reduced) and to increase the pay for such employment by
.an equitable readjustment of all pay schedules. Where a State law
provides a higher minimum wage than is provided in this Code,
no person. employed within that State shall be paid a wage below
that required by such State law.
ARrICLE V--GENERAL LABOR PROVISIONS

1. After the effective date of this Code, employers will not employ
any person under sixteen years of age, except that persons under
sixteen may3 be used as talent on programs for not more than three
hours per day, and those hours to be such as will not interfere with
their schooling. Provided, however, that where a State law pro-
vides a higher minimlum age, such State law shall be controlling.
2. Employees shall have the right to organize and bargain col-
lectively through representatives of their own choosing emlyrand shall
be free from the interference, restraint, or coercion o mlyr
of labor, or their agents, in the designation of such representatives
or in self-organzizat~ion, or in other concerted activities, for the pur-
pose of collective bargaining or other mutual aid or protection.
3. No employee and no one seeking emlploymeent shall be required
as a condition of employment to jomn any company union, or to
refrain from joinmng, orgaruzing, or assisting a labor organization
of his own choosing.
4. Employers shall comply with maximum hours of labor, mini-
mum rates of pay, and other conditions of employment, approved
or prescribed by the President.
5. Working conditions in any broadcasting station or network
shall not be changed to frustrate the intent and purpose of this Code.
Where on November 1, 1933 any broadcaster paid broadcast tech-
nicians wages in excess of the minimum her~ein provided for or
worked such employees a lesser number of hours per week thlan
herein permitted, such higher wages and such lesser number of hours
shall be deemed to be and are hereby declared to be the minimum
scale of wages and maximum number of hours with respect to such
stations.
6. Nothing herein contained shall be construed to apply to em-
ployees whose rates of wages, hours, and/'or weekly full-time wages
are established by labor agreement, understandings'or practices now
in force, where such minimum rates of pay are higher and the maxi-





360


mum number of hours per week are lower than those set: nfarh
herein above.
7. All employers shall post complete copies of this Code in con-
spicuous places accessible to employees.
ARTICLE VI--ADM~INISTRATION

To further effectuate the policies of the Act, a Code Authimity is
hereby constituted t~o cooperate with the Administrator in the ad-
ministration of this Code.
1. The Code Authority shall consist of James W. Baldwin, Issaac
Z. Buckwalter, John Elmer, James Kiernan, Alfred J. Mc~osker
Ed ward N. Nockels, N. R. Runyon, Frank M. Russell, John Shepard,
III, and in addition thereto there may be three members without vote.
to be appointed by the Administrator, who, together with the Ad-
ministrator, shall be given notice of and may sit at all meetings of
the Code Authority.
2. In order that the Code Authority shall at all times be truly
representative of the industry and in other respects comply with
the provisions of the Act, t~he Administrator mlay provide such
hearings as he may deem proper; and thereafter if he shall find
that t~he Code AuthorityJ is not truly representative or does not in
other respects comply with the provisions of the Act, may require
an appropriate modification in the method of selection of the Code
Authorityr.
3. The Code Authority shall investigate the hours of labor and
the wages of radio artists and performers (other than musicians),
and upon the completion of its investigation shall report thereon
to the Administrator.
4. The Code Authority shall investigate the hours of labor, wages,
and working conditions of broadcast technicians and the relation
thereof to general conditions within the industry, and within a period
of ninety days from the effective date of this Code, shall report
thereon to the Administrator.
5. As and when any question directly or indirectly affecting any
class of employees engaged in the Radio Broadcast~ing Industry
is t~o be considered by th~e Code Authority, one representative of
such class, selected by the Administrator from nominations made
by such class in such manner as may be prescribed by the Admin-
istrator, shall sit wit~h and become for such purposes a member of
the Code Authority with a right to vote.
6. In addition to information required to be submitted to the
Code Authority there shall be furnished such statistical information
as the Administrator many deem necessary for the purposes recited
in Section 3 (a) of the National Industrial Recovery Act.
7. The Code Authority shall recommend to the A~dministrator a
permanent form7 of organization for the administration of this Code.
8. Members of the broadcasting industry shall be entitled to par-
ticipate in and share the benefits of the activities of the Code Au-
thority and to participate in t.he selection of the members thereof by
assenting to and complying with t.he requirements of this Code and
sustaining their reasonable share of the expenses of its administra-
tion. Such reasonable share of the expenses of administration shall





361.


be determined by the Code. Authority subject to review by the Ad-
ministra~tor, on the basis of vorlu~me of~ bui-;ness and//or such other
factors as may bei deemed equitable.
9. Nothing contained in this Code shall constitute the members ofE
the Code Authority partners for anzy purpose. Nor shall any mem-
ber of the Code Authority be liable mn any manner to anyone for any
act of any other member, officer, agent, or employee of the Code
Authority exercising reasonable diligence in the conduct of his duties
hereunder, or be liable to anyone for any action or omission to act
under the Code, except for his own willful misfeasance or non
feasance.
10. The Code Authority shall have the following powers and duties
in addition to those elsewhere provided in this C~ode, subject to the
right of the Administrator, on review, to disapprove or modify any
action taken by the Code Authority:
(a) To adopt bylaws and rules and regulations for its procedure
and for the administration and enforcement of the Code, in accord-
ance w~ithl the powers herein granted, and to submit the same to the
Administrator for his approval together with true copies of any
amendments or additions when made thereto, minutes of meetings
when held, and such other. information as t~o its activities as the
Administrator may deem .necessary to effect the purposes of the
Act.
(b) To obtain from members of the industry for use of the Code
Authority, for the Administrator in the administration and enforce-
ment of the Code, and for the information of the President, reports
based on such periods as may be determiined by the Code Authority
as soon as the necessary r-eadjustment wFithin the industry can be
made and to gi~ve assistance to members of the industry in improving
methods, or mn prescribing a uniform system, of accounting and re-
porting. All individual reports shall be kept confidential as to the
members of the industry and only general summaries thereof may be
published.
(c) To receive complaints of violations of this Code, make investi-
,gations thereof, provide hearings thereon and adjust such complaints,
and bring to the attention of the Administrat~or for prosecution,
recommendations, and information relative to unadjusted~ violations;
in no event shall the Code Authority proceed to prosecute without
notice to and approval by the Administrator.
(d) To use such trade associations and ot~her agencies as it deems
proper for the carrying out of any of its aictivities provided for
herein and to pay such trade associations and agencies the cost
thereof, provided that nothing herein shall relieve the Code Author-
ity of its duties or responsibilities under this Code and that such
trade associations and agencies shall at all times be subject to and
comply with the provisions hereof.
(e) To coordinate the administration of this Code with such other
codes, if any, as may be related to t.he -industry, or any subdivision
thereof, and to delegate to any other administrative authority, with
the approval of the Administrator, such powers as will promote joint
and harmonious action upon matters of common interest.
(f) To secure an equitable .and. proportionate payment of the ex-
penses of maintaining the Code Authority and its activities from
members of the Industry.






362

(g) To cooperate wIith the Administrator in regulating the use of
the N.R.A. Code Insignia solely by those employers who have
assented to and are complying with this Code.
(h) Wher~e the operations of the provisions of this Code impose an
unusual or undue hardship upon any broadcaster or network such
broadcaster or net work may make application for relief to the Ad-
ministrator or to his dluly authorized agent, and the Admiis~trator
or his agent may, after such public notice and hearing as he may-deem
necessary, grant such exception to or modification of the provisions
of this Code as may be required to effectuate the purpose of the
National Industrial Recovery Act.
(i) To initiate, consider, an~d make recommendations for the modi-
fication or amendment of this Code.
11. An appeal from any action by the Code Authority affIecting
the rights of any employer or employee in the Industry may be taken
to the Administrator.

ARTICLE VII TRADE PRACTICES

1. Raltes, Commlzssaions, and Discousmts.--(a) Each broadcaster
and network shall forthwith publish and file with the Code Author-
ity, a schedule of all its rates regularly -andl currently charged to
advertisers for t~he use of broadcasting time, together with all dis-
counts, rebates, refunds, a.nd commissions which shaUl be allowed to
the users of such time or to their recognized agents, such schedule to
be known as the Rate Card. No Rate Card or rate charged there-
under shall be modified until fifteen days after the filing with the
Code Authority of th~e Rate Card with the proposeed modificattions.
Charges for the use of broadcasting time, and discounts, rebates,
refunds, and commissions allowed to the users of such time or their
recognized agents shall be in exact accordance withl such Rate Card
except that under conditions not specifically oee yteRt
Card, charges for the use of broadcasting timoe may be ath sptel
rates provided a full wFrittenl st~a.tement of such special rates and.
conditions is filed immediately with t~he Code Authority, which
authority shall be authorized to publish such statement in full.
In no event shall modifications of the Rate Card, special rates or
special conditions violate any of the terms of thiis Code.
(b) Any attempt to evade the provisions of this Code through
the offer or payment of excessive or unearnedl commrissions, discounts,
rebates, refunds, gratuities, or fr~ee time (other than legitimate pro-
gram onnouncemients) and a'ny business done oni a cost per-inquiry,
contingent, or percentage basis shall be dleemnedl unfair trade prac-
tice within thle meaning of this Code.
2. Special Servcice~s an~d Farciitiesr.-(a;) No broadcaster or network
shall supply for commercial programs special technical facilities, in-
cludingf outside pickups or wire lines, at less than the actual cost to
it of such special services or facilities unless a full written report is
filed immediately with the Code Author~ity and in no event shall such
facilities~ be .suppn~lie below cost. for the pulrpose of evadng;c the pro-
visions of this Code.
3. ~Sales o,- Tarlen~t, Liter~ary and Muizsical Right~s, Re~or~dinzgs, Et.--
(a) No broadcasterr or network shall sell or furnish for commercial





363


programs, talent, or special recordings, or literary or musical rights
d~f any sort, not prlovided for in the Rate Card at less than the actual
cost to the broadcaster or network of such talent or special record-
ings, or literary or musical rights unless a full written statement of
such sale below cost is filed immediately with the Code Authority,
and in no event shall such sale below cost be for the purpose of evad-
ing the provisions of this Code.
4. General Provisions.--(a) This Code shall apply to all con-
t~ract iffade on or after the date on which this Code becomes effective
and after that date shall apply to all renewals or extensions made
of cntrats mde rior thereto unless there is vested in a party
other than the broadcse rntokargtt ee retn
the then-existing contract.
(b) No broadcaster or network shall defame or disparage a
competitor, directly or indirectly, by words or acts which untruth-
fully call in question such competitor's business integrity, ability to
perform contracts, credit standing, or quality of service.
(c) No broadcaster or networks shall claim for its service a
character, scope, or quality which cannot be substantiated, nor shall
it claim as regular characteristics of its service features which it
knows to be purely temporary or accidental.
(d) No broadcaster or network shall accept or knowingly permit
any performer, singer, musician, or orchestra leader regularly em-
ployed by such broadcaster or network to accept any mnoney, gift,
bonus, re~fu~nd, rebate, royalty service, favor, or any other thing or
act of value from any music publisher, composer, author, copyright
owner, or the agents or assignees of any such persons for performing
or having performed any musical or other composition for any-
broadca~ster or network when the purpose is to induce such persons
to sing, prlayr n-perforrm, or to have suing played, or performed a~ny
such works.
(e) No broadcaster or network shall knowingly permit the: broad-
casting of any advertisement of, or information concerning any lot-
tery, gift enterprise, or similar scheme, offering prizes dependent in
whole or in part upon lot or chance, or any list of t~he prizes drawn
or awarded by means of such lottery, gift enterprise, or schemne,
whether said list contains any part or all of such prizes.
(f)` Wherey a ~staion or networrke is brroacastin g a sustaining pro-
gram utilizing the services of any band or orchestra, it shall be
deemed an unfair practice under this Code to mnake any commercial
announcement advertising any commodity either before, during, or
after the program the effcect of which is to create falsely the imnpres-
sion that the music is furnished or paid for by any persons or firm
others than the actual employer of such band or orchestra.
(g) It. shall be considered an unfair trade practice under this
Code for any station or network to destroy fair competition among
bands or orchestras by causing booking offices, artist bureaus, or
agents to demand that any hotel, night club, restaurant, or similar
establishment employ any specific band or orchestra.
(h) It shall be considered an unfair trade practice under thiis Code
for any broadcaster to broadcast without being duly authorized by
the United States Government.






364


(i) No broadcaster or network shall use any subterfuge to frus-
trate the spirit and intent of this Code, and the violation of anyV
of t~he provisions of this Article VII of this Code shall be deemed
an unfair trade practice.

AnnIcLE VTIII-1\10DIFICATION

1. Th~e President of the United States m~ay, from time to time,
cancel or modifyv any order, approval, license, rule, or regulation
issued under Title I of the Act.
2. Nothing in this Code, however, shall be construed as authoriz-
;ngr or consenting to the imposition of any requirement which is mn
conflict with t~he Radcio Act of 1927, as amended, or the rules and
regulations promulgated thereunder.

ARTICLE IX-191NOPOLTEs, ETC.

No provision of this Code shall be so applied as to permit monop-
olies or monopolistic practices, or to eliiniiate, oppress, or discrim-
mnate against small enterprises.

ARTICLE X--EFFECTIVE DATE

This Code shall become effective on the second Monday~ after its
approval by the President.
Approved Code No. 129~
Registry No. 1742-09











































































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