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NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
AS APPROVED ON MARCH 4, 1935
GOVERNMENT PRINTING OFFICE
For sale by the Superintendent of Documents, Washington, D. C. -Price 5 cents
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Approved Code No. 552
Registry No. 509--02
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Approved Code No. 552
CODE OF FAIR COMPETITION
MUSIC PUBLISHING INDUSTRY
As Approved on March 4, 1935
APPROVING CODE OF FAIR COMPETITION FOR THE MUSIC PUBLISHING
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933, for approval of a Code of
Fair Competition for the Music Publishing Industry, and hearings
having been duly held thereon and the annexed reports on said
Code of Fair Competition, containing findings with respect thereto,
having been made and directed to the President:
NOW, THEREFORE, on behalf of the President of the United
States, the National Industrial Recovery Board, pursuant to author-
ity vested in it by Executive Orders of the President, including
Executive Order No. 6859, dated September 27, 1934, and otherwise;
does hereby incorporate by reference said annexed report and does
find that said Code complies in all respects with the pertinent pro-
visions and will promote the policy and purposes of said Title of
said Act; and does hereby order that said Code of Fair Competition
for the Music Publishing Industry be and is hereby approved:
PROVIDED, HOWEVER, that the approval of this Code, or
anything contained therein, or in any amendments thereto, or in any
rules or regulations adopted pursuant thereto, shall not be deemed
or construed as approving, sanctioning, or condoning any of the acts
alleged in the petition filed in the United States District Court for
the Southern District of New York, August 30, 1934, and now pend-
ing therein, entitled, United States vs. American Society of Compos-
ers, A .4 utorx. and Publishers; Music Publishers' Protective Associa-
tion, ct al., Equity No. 78-388, or in any amended or supplemental
petition or petitions which may be filed therein, or any acts forbid-
den in any decree or decrees which may be entered pursuant thereto.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By W. A. HARRIMAN, Administrative Offiecr.
JACK B. TATE,
Divh'Lon A dmin i i.rator.
WASHINGTON, D. C.,
March 4, 1935.
REPORT TO THE PRESIDENT
The White House.
SIR: This is a report on the proposed Code of Fair Competition
for the Music Publishing Industry. A public hearing was held on
this proposed Code on July 26, 1934, and full opportunity was given
to all interested parties to appear.
The proposed Code covers two separate and divisional industries,
namely, Standard Music Publishers and Popular Music Publishers,
and consists of hour, wage, and general labor provisions, adminis-
trative provisions and fair trade practice provisions.
EXTENT OF THE INDUSTRY
The Music Publishing Industry is a relatively small one insofar
as number of employees, annual sales, or invested capital, are con-
cerned, but its product probably touches the lives of more people
than the product of any other industry in this country. It is hard to
figure in the life of the average man or woman, a day in which at
some time they are not in contact with music.
Music is one of the most universally used commodities on the
market today. It is becoming increasingly popular all the time, but
even with this growing popularity there is still little known by the
general public of the comparatively few men and women who are
currently and constantly adding to our reservoir of music. Music
is the "raw material which makes possible the commercial opera-
tion of huge business enterprises; it is the keystone in the arch of
the structure that supports the entire amusement and entertainment
industry, which annually derives from the American public a
revenue of billions of dollars.
During the years 1928 to 1930, according to the President's Com-
mittee on Recent Social Trends, the American people spent annually
$2,214,725,000 for commercial amusements. Each of these commer-
cial enterprise groups,-motion pictures, radio, theaters, concert and
dance halls, night clubs and cabarets, and even restaurants, are to a
very large degree dependent for their existence upon music. Yet
for every dollar paid by the American people for commercial amuse-
ments, the creators receive less than one-tenth of 1 per cent.
The commodities which the Industry vends are divided into two
sharply defined classes. These two classes of music are produced
by a substantially different group of publishers, known in the trade,
as Popular Music Publishers and Standard Music Publishers. It is
estimated that there are about 75 music publishers in the United
States, divided approximately into 30 Standard Music Publishers,
and 45 Popular Music Publishers. The bulk of the total dollar
volume is represented, however, by less than one half of the total
number of establishments.
Popular music, is made up of a constant procession of selections
which "click to a greater or less degree; are whistled and sung
during a brief period by stars of the radio, stage, and private citi-
zens; and then are more or less forgotten. In distributing them
timeliness is the essence. Margins of gross profit are narrow, but the
volume of any one number is large, and the turnover is very rapid.
Popular music sales normally are from one-fourth to one-third of
the total sales of all music.
Standard music, is composed of numbers of more enduring popu-
larity, many of them classical pieces and grand opera, together with
exercise books, song-books, certain types of religious music, etc.
Demand for them is constant. Turnover is comparatively slow.
Volume on any one number is small. Gross profit margins are high.
Standard music sales usually are two-thirds to three-fourths of the
sales of all music.
In geographical distribution the Music Publishing Industry is
heavily concentrated in New York City, which alone normally ac-
counts for about two-thirds of the total amount of music published.
Massachusetts and Pennsylvania are next in importance, each repre-
senting about 17 and 7 percent respectively of the total. The prin-
cipal other states are, California, Ohio, and Illinois. New York City
represents about 86 per cent of the total of popular music published,
and about 51 per cent of the total of standard music.
AVENUES OF DISTRIBUTION
Both types of music, popular and standard are sold to ultimate
consumers by the same groups of retail stores; shops specializing in
sheet music and musical instruments (these are tending to become
less important), radio and music shops, variety stores, department
stores, gift shops, drug stores in certain sections of the country, book
stores, cigar stores, mail order houses, sport shops, and other mis-
cellaneous types of retailers. It is estimated that between one-third
and one-half of the total retail sales of the products of this Industry
are made through variety stores, stores specializing in musical in-
struments and sheet music, and radio and music stores. Publishers
sell in considerable. amounts direct to ultimate consumers and to
commercial and institutional users-teachers, schools, orchestras,
glee clubs, etc. Most standard publishers also perform a wholesaling
VOLUME OF SALES
The MuAiic Publishing Industry reported sales of $9,500,000 in
1929. (There is probably an additional million in sales represented
by firms who did not report.) During the period from 1929 to
1933, the aggregate annual sales in dollar volume decreased from
9.5 million to 5 million, representifig a decrease of about 46 per cent.
It is estimated that the total sales for 1934 will exceed 6 million,
representing at least a 16 per cent increase in 1934 over 1933.
The Music Publishing Industry is essentially a "white collar"
business with no machine workers, and comparatively few manual
workers of any sort. The employees of a music publisher are prac-
tically confined to executives, editorial staff, clerical workers of
various types, salesmen, song pluggers, etc.
In March 1929 there were more than 1,139 wage earners employed
in the Music Publishing Industry. In March 1933 and March 1934
there were 770 and 793 respectively. The total for 1933 was 33 per
cent under that of 1929, and even though employment had increased
about 7 per cent between March 1933 and March 1934, it was still 30
per cent less than March 1929. It is estimated that the average
for 1934 will be about 850.
In 1929 only 21 per cent of these employees worked 40 hours or
less. About 72 per cent worked between 40 and 45 hours, and 9 per
cent between 45 and 50 hours. In other words more than 90 per
cent worked 45 hours or less per week. In March 1933, 50 percent
of all the reported employees worked 40 hours or less, and in 1934,
84 per cent worked 40 hours or less. For the last two yearly periods
those working 45 hours or less, were 92 per cent and 96 per cent re-
spectively, of the total. The average work week in March 1929 was
less than 42 hours, and about 39 hours in March 1933.
The figures submitted by the Industry show that for the corre-
sponding week in March 1929, 1933, and 1934, those working below the
codal minimum of $15.00 per week, were 10.5, 18.5, and 7 percent re-
spectively of the total. In other words although there was a material
decrease in the weekly wages between 1929 and 1933 in the lower
brackets, there was a decided increase between 1933 and 1934. Those
employees who appear in the upper wage brackets did not experience
decreases to the same degree as those in the lower brackets between
1929 and 1933. Their status, therefore, remained about the same
after the President's Reemployment Agreement was adopted.
The average weekly wage in 1933 was $23.92, or 20 per cent less
than the 1929 average of $30.40. The average weekly wage for 1934
of $32.55 was not only an increase of about 25 per cent above the
1933 average, but was also about 6 per cent above the 1929 average.
It is estimated that total wages decreased 40.4 per cent between
1929 and 1933, and increased about 30 percent between 1933 and 1934.
For the year 1929 and 1933 the average per cent that the total wages
were of the gross income, was about 20 per cent. During 1934 this
per cent increased to about 25 per cent.
The Deputy Administrator in his final report to us on the proposed
Code of Fair Competition for the Music Publishing Industry, having
found as herein set forth, and on the basis of all the proceedings
on this matter:
We find that:
(a) The said Code is well designed to promote the policies and
purposes of Title I of the National Industrial Recovery Act includ-
ing the removal of obstructions to the free flow of interstate and
foreign commerce which tend to diminish the amount thereof, and
will provide for the general welfare by promoting the organization
of industry for the purpose of cooperative action among trade
groups, by inducing and maintaining united action of labor and
management under adequate governmental sanction and supervision,
by eliminating unfair competitive practices, by promoting the fullest
possible utilization of the present productive capacity of industries,
by avoiding undue restriction of production (except as may be
temporarily required), by increasing the consumption of industrial
and agricultural products through increasing purchasing power, by
reducing and relieving unemployment, by improving standards of
labor, and by otherwise rehabilitating industry.
(b) Said Industry normally employs not more than 50,000 em-
ployees; and is not classified by us as a major Industry.
(c) The Code complies in all respects with the pertinent provi-
sions of said Title of said Act, including without limitation, Sub-
section (a) of Section 3, Subsection (a) of Section 7 and Subsection
(b) of Section 10 thereof; that the groups submitting this Code are
truly representative of the aforesaid Industry and the divisions
thereof, and that the applicant groups impose no inequitable restric-
tions on admission to membership therein.
(d) The Code is not designed to and will not permit monopolies
or monopolistic practices.
(e) The Code is not designed to and will not eliminate or oppress
small enterprises and will not operate to discriminate against them.
(f) Those engaged in other steps of the economic process have
not been deprived of the right to be heard prior to approval of said
We believe the Code to be fair to labor, to the consumer, and to
the Industry, and for these reasons, therefore, we approve this
For the National Industrial Recovery Board:
W. A. HARRIMAN,
MARCH 4, 1935.
CODE OF FAIR COMPETITION FOR THE MUSIC
To effect the policies of Title I of the National Industrial Re-
covery Act, this Code is established as a Code of Fair Competition
for the Music Publishing Industry and its provisions shall be the
standards of fair competition for such Industry and shall be bind-
ing upon every member thereof.
1. The term Music Publishing Industry" as used herein in-
cludes all persons, firms, partnerships, associations, corporations,
or other entities engaged in the business of editing and preparing
for publication and publishing musical works in printed or other
form; and all such persons or entities also engaged in the business
of importing musical works in printed form; provided, however,
that the term Music Publishing Industry shall not be construed
to include the renting or licensing activities of any person, firm,
partnership, association, corporation, or other entity pertaining to
public performance or mechanical reproduction rights.
2. The term Standard Music Publishing Division ", as used
herein includes any person, firm, partnership, association, corpora-
tion, or other entity engaged in the business of editing and prepar-
ing for publication and publishing in printed or other form, musical
works (whether copyrighted or not) of the character generally
designated in the Industry as standard, or educational, or classical
music; and all such persons or entities also engaged in the business
of importing such musical works in printed form.
3. The term "Popular Music Publishing Division as used herein
includes any person, firm, partnership, association, corporation, or
other entity engaged in the business of editing and preparing for
publication and publishing in printed or other form, musical works
(whether copyrighted or not) of the character generally designated
in the Industry as Popular Music "; and all such persons or entities
also engaged in the business of importing such musical works in
4. The terms member of the Industry and member of the
Division as used herein include, but without limitation, any indi-
vidual, partnership, association, corporation, or other form of enter-
prise engaged in the Industry or in a Division thereof, either as an
employer or on his or its own behalf.
5. The term "employee" as used herein includes any and all
persons engaged in the Industry however compensated, except a
member of the Industry.
6. The term employer as used herein includes any person or any
entity by whom such employee is compensated or employed.
7. The term Song Pligger as iused herein shall designate any
individual solely employed by any member of the Industry whose
principal business is to induce performers to include in their reper-
toire the songs published by his employer, or himself to perform such
songs on occasion.
8. The term Code Authority" as used herein is defined to mean
the Administrative Agency of each Division.
9. The term Music Publishers' Coordinating Committee or
"Committee as used herein is defined to mean the Coordinating
Agency of the Music Publishing Industry.
10. The terms "President", "Act", and "National Industrial
Recovery Board or Board as used herein mean respectively, the
President'of the United States, Title I of the National Industrial
Recovery Act. and the National Industrial Recovery Board, or its
successors in office.
ARTICLE III-HoV RS
SECTION 1. .Ma[Tiitie Hours.-(a) No employee shall be permit-
ted to work in excess of thirty-eight (38) hours in any one week, or
seven (7) hours in any twenty-four (24) hour period, (beginning
at midnight), except, as herein otherwise provided.
(b) A tolerance period not to exceed forty (40) hours in any one
year, shall be allowed for each employee indispensably necessary to
the conduct of business during peak period-, during which time such
employees may be permitted to work not exceeding forty-six (46)
hours per week; provided, however, that for any hours or fraction
of hours worked in exce.,s of seven (7) hours in any twenty-four (24)
hour period, or thirty-eight (38) in any one week, any such em-
ployee shall be paid at the overtime rate of time and one-half.
SECTION 2. Exceptions as to hours.-The provisions of this Article
shall not apply to outside salesmen and such representatives known
in the Industry as song pluggers ", to employees engaged in emer-
gency repair, or emergency maintenance work, or to persons em-
ployed in a managerial or executive capacity who are paid regularly
thirty-five dollars ($35.00), or more per week; provided, however,
that employees engaged in emergency maintenance and/or emergency
repair work shall be paid at one and one-half (112) times their nor-
mal hourly rate for all hours worked in exce-s of eight (8) hours per
day or forty (40) hours per week.
SECTION 3. Staudlard Week.--No emplloyee shall be permitted to
work more than six (6) days in any seven (7) day period, except
those employees mentioned in the foregoing Section 2.
SECTION 4. Emiployimnit by Several Employers.-No employer shall
knowingly permit, any employee to work for any time which, when
added to the time spent at work for another employer or employers in
this Industry, (or otherwise), exceeds the maximum permitted
A ARTICLE IV-WAGES
SECTION 1. .Mliint.,in Wages.-Excep)t. as hereinafter provided, no
employee shall be paid in any pay period less than at a rate of fifteen*
dollars ($1.00) per week.
SCTIanr 2. No employee engaged in part-time employment, shall
be paid at a rate less than forty-two cents (420) per hour.
SECTION 3. Office boys, office girls, and messengers under 18 years
of age may be employed at a rate not less than eighty (80) per cent
of the milnimuml wage provided in Section 1. No more than twenty
(20) per cent of the total number of employees of any member of
the Industry shall be in this category at any one time- provided,
however, that each member of the Industry shall be entitled to employ
at least one such employee.
SECTION 4. The foregoing provisions are intended to establish only
minimum and not maximum wage requirements.
SECTION 5. Female employees performing substantially the same
work as male employees shall receive the same rate of pay as male
S:(CrTON C. A per.-oon whose earning capacity is limited because
of age. physical or mental handicap, or other infirmity, may be em-
ployed on li,-ht work at a wage below the minimum established by
this Code. ifthe employer obtains from the State Authority desig-
nated by the United States Department of Labor, a certificate
authorizing his employment at such wages and for such hours as
shall be stated in the certificate. Each employer shall file monthly
with the Code Authority a list of all such persons employed by
him, showing the wages paid to, and the maximum hours of work
for. such employee.
SECTIMO 7. This Article establishes minimum rates of pay which
shall apply, irrespective of whether an employee is actually com-
pensated on a time rate, piece-work, or other basis.
SECT'ION No employer shall make any reduction in the full-
time weekly earnings of any employee because his normal full-time
weekly hours are reduced by the provisions of Article III of this
Code. In no event shall hourly rates of pay be reduced because
of the provisions of this Code. irrespective of whether compensation
is actually paid on an hourly, weekly, or other basis, nor shall any
w-ages be at less than the minimum rates herein provided.
Within thirty (30) days of the effective (late hereof (unless such
adjustment has been made theretofore), each employer shall adjust
the schedule of wages of his employees in such an equitable manner
as will conform to the provisions hereinabove set forth, and still pre-
serve wage differentials reasonably proportionate to those in effect
prior to the effective date of this Code, except that. this paragraph
shall not apply to employees earning thirty-five dollars ($35.00)
per week or more.
SECTION 9. No employer sliall modify Iis or its established prac-
tices as to vacation periods, leaves of absence, and/or temporary
absences from work with the purpose and effect of reducing such
privileges heretofore granted employees.
SECTION 10. An employer shall make payment of all wages due,
at least every two weeks, and salaries at least at the end of every
month in lawful currency or by negotiable check therefore, payable
on demand. If wages are paid by check, the employer shall provide
reasonably accessible facilities for cashing checks at face value with-
out expense to the employee. The employer shall also provide such
identification as is necessary to utilize these facilities. The.e wages
shall be exempt from any charges. fines, or deductions; or payment of
pensions, insurance or sick benefit other than those voluntarily paid
by the wage earners or required by State law.
Employers or their agents shall not accept directly or indirectly
rebates on such wages or salaries, or give anything of value or ex-
tend any favor to any person for the purpose of influencing rates of
wages or working conditions of their employees.
ARTICLE V-GENERAL LABOR AND OTHER PROVISIONS
SECTION 1. Child Labor.-On and after the effective date of this
Code, no person under sixteen (16) years of age shall be employed in
the Industry. In any State any employer shall be deemed to have
complied with this provision as to age if he shall have on file a
certificate or permit, duly signed by the Authority in such State
empowered to issue employment or age certificates or permits, show-
ing that the employee is of the required age, except that persons
under the age of sixteen (16) may be employed solely as performers,
subject to the local laws, and regulations of the Code Authority.
SECTION 2. (a) Provisions from the Act.-Employees shall have
the right to organize and bargain collectively through representatives
of their own choosing, and shall be free from the interference, re-
straint, or coercion of employers of labor, or. their agents, in the
designation of such representatives or in self-organization or in other
concerted activities for the purpose of collective bargaining or other
mutual aid or protection.
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company union or to refrain
from joining, organizing or assisting a labor organization of his
own choosing, and
(c) Employers shall comply with the maximum hours of labor,
minimum rates of pay, and other conditions of employment,
approved or prescribed by the President.
SECTION 3. Evasion Througfh S'ubrtrfuge.-No employer shall
reclassify employees or duties of occupation performed or engage in
any other subterfuge so as to defeat the purposes or provisions of
the Act or of this Code.
,cctlio 4. No employee now employed at rates in excess of the
minimum shall be discharged and reemployed at a lower rate for
the purpose of evading the provisions of this Code.
SECTION 5. StanE/ 'rds for Safety and Healthl.-Every employer
shall provide for the safety and health of employees during the. hours
and at the places of their employment. Standards for safety and
health shall be submitted by the Code Authority to the National
Industrial Recovery Board within sixty days after the effective date
of the Code. After approval, such standards shall become the mini-
nmum standards of safety and health for all members of the Industry.
SECTION 6. State lani's.-No provision in this Code shall supersede
any State or Federal Law which imposes on employers more strin-
gent requirements as to age of employees, wage, hours of work, or
as. to safety, health, unitaryy, or general working conditions, or in-
-surance, or fire protection, than are imposed by this Code.
SIETx n 7. Ponting--All employers shall post and keep posted
ro)pies of the full labor provisions of this Code in conspicuous places
readily accessible to all employees. Every employer shall comply
with nll rules and regulations relative to the posting of provisions
of Codes of Fair Competition which may from tnie to time be pre-
-,crilbe(l by the National Industrial Recovery Board.
SECTrION 8. No employee shall be dismissed or demoted for making
a complaint or giving evidence with respect to an alleged violation of
;an of the lrovi-ions of any Code.
A.ln'UI:E VI-OI.iANIZATION, POWERS AND DUTIES OF THE CODE
SECrTON 1. O, qlu,;aiion-(a) A Code Authority consisting of
five (5) members is hereby established for the Standard Music Pub-
lishing Division. The members of the Code Authority for this Divi-
sion shall be selected in the following manner, subject to the approval
of the National Industrial Recovery Board.
Four (4) members of the Code Authority, not more than one (1)
of whom ,hall 1w from any one member of the Division, including
.-uLb.idiaries or auhliatos thereof. shall be elected by the members of
the Music Publishers' Association of the United States within sixty
(Gil) dlay. after the effective date of this Code.
One (1) meliiber of the Code Authority shall be elected by the
imem,'inwr. of the Division who are not members of the Music Pub-
liheIr.' Association of the United States. The manner of electing
.uilch member shall be as follows:
The Code Conmmittee of the Standard Music Publishers shall
within thirty (30) days after the effective date of this Code, select
a Nominating Committee of not less than three (3) non-Association
inembers, which shall cause ballots to be prepared containing the
names of three (3) nominees, not more than (1) of whom shall
be from any one (1) member of the Division, including subsidiaries
or affiliates thereof, and all of whom shall be non-Association mem-
her.-, with a blank space for one (1) additional nominee. Said nomi-
nees shall be fairly representative of large and small publishers and
all other groups in the Division.
Upon the selection of the three (3) nominees, the Code Colmmittee
hall transmit within fifteen (15) days thereafter, a notice of elec-
tion and ballot containing the names of the three (3) nominees and
a blank space for one (1) additional nominee, to all ascertainable
members of the Division who are not members of the Music Pub-
lishers' Association of the United States, at least fifteen (15) days
before the election, to be held at. a time and place designated by the
Code Committee, not to be later than sixty (60) days from the effec-
tive date of this Code. Each such member, voting either by regis-
tered mail, by proxy, or in person, shall have one vote for the one
member of the Code Authority to be elected by the non-Association
members. The nominee receiving the largest number of the votes
cast shall become the non-Association member of the Code Authority.
The term of office of the members of the Code Authority shall be
one year or until their successors are duly elected and qualify.
Vacancies in the membership of the Code Authority for unexpired
terms occasioned by death or resignation, shall be filled by selection
made by the remaining ImIniber., of the Code Authority from the
Industry group in which the vacancy occurred.
Subsequent elections shall be conducted in the s1Iame mainmer as
above described, except that the Code Authority of the Standard
Music Publishing Division shall act in place of the Code Committee,
unless the National Industrial Recovery Board shall otherwise
(b) A Code. Authority consisting of five (5) nmemtnber is hereby
established for the Popular Music Publishing Division. The mem-
bers of the Code Authority shall be selected within sixty (60) days
after the effective date of this Code. in the following manner, sub-
ject to the approval of the National Industrial Recovery Board:
The Code Committee of the Popular Music Publishing Division
shall cause ballots to be prepared containing the names of seven (7)
nominees, not more than one of whom shall be from any one member
of the Division, including subsidiaries or affiliates thereof, and not
more than three (3) of whom may be members of the Music Pub-
lishers' Protective Association, with blank spaces for four' (4) addi-
tional nominees. Said nominees shall be fairly representative of
large and small members and of other groups in the Division.
The Code Committee shall transmit a notice of election and the
ballot above provided for, to all ascertainable members of the Divi-
sion at least fifteen (15) days before the election, to be held at a
time and place designated by the Code Committee.
Each member of the Division, voting either by registered mail,
by proxy, or in person, shall have one vote for each member of the
Code Authority. The. five (5) nominees receiving the largest num-
ber of the votes cast shall constitute the Code Authority.
The term of office of the Industry members of the Code Authority
,hall be one year or until their .sucessors are duly elected and
Vacancie.- in the membership of the Code Authority for unexpired
terms occasioned by death or resignation, shall be filled by selection
made by the remaining members of the Code Authority from the
Industry group in which the vacancy occurred.
Subsequent elections shall be conducted in the same manner above
described, except that the Code Authority of the Popular Music
Publishing Division shall act in place of the Code Committee, unless
the National Indust rial Recovery Board shall otherwise decide.
SECTION 2. In addition to the membership as above provided, there
may be one member, without vote and without cost to the Industry,
for each of the Code Authorities established in accordance with Sec-
tion 1 of this Article, to be known as Administration Member, to be
appointed by the National Tndustriial Recovery Board to serve for
such term as the Board may specify.
SECTION 3. The Code Committee of the Standard Music Publish-
ers and the Code Committee of the Popular Music Publishers, are
hereby designated a. temporary Code Authorities and authorized
to perform the necessary administrative function. for their respec-
tive Divisions until the Code Authorities hereinabove provided for
shall have been selected.
SECTION 4. Each trade or indu.-trial association directly or indi-
rectly participating in the -election or activities of the Code Au-
thority shall (1) impose no inequitable restrictions on membership,
and (2) submit to the National Industrial Recovery Board true
copies of its articles of association, by-laws, regulations, and any
amendments when made thereto, together with such other informa-
tion as to membership. organization, and activities as the National
Industrial Recovery Board may deem necessary to effectuate the
purposes of the Act.
SECTION 5. In order that both Code Authorities shall at all times
be truly representative of the Industry and in other respects comply
with the provisions of the Act. the National Industrial Recovery
Board may prescribe such hearings as the Board may deem proper;
and thereafter if the Board shall find that a Code Authority is not
truly representative or does not in other respects comply with the
provisions of the Act, may require an appropriate modification of
the Code Authority.
SECTION 6. Nothing contained in this Code shall constitute the
members of a Code Authority partners for any purpose. Nor shall
any member of a Code Authority be liable in any manner to anyone
for any act of any other member, officer, agent or employee, of the
Code Authority. Nor shall any member of a Code Authority, exer-
cising reasonable diligence in the conduct of his duties hereunder, be
liable to anyone for any action or omission to act under this Code,
except for his own willful malfeasance or nonfeasance.
SEC ION 7. If the National Industrial Recovery Board shall at
any time determine that any action of a Code Authority or any
agency thereof may be unfair or unjust or contrary to the public
interest, the National Industrial Recovery Board may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by such Code
Authority or agency, pending final action which shall not be effective
unless the National Industrial Recovery Board approves or unless
the Board shall fail to disapprove after thirty (30) days' notice
to the Board of intention to proceed with such action in its original
or modified form.
SECTION 8. Powers and Dutic.r.-Subject to such rules and regula-
tions as may be issued by the National Industrial Recovery Board,
each Code Authority shall have the following powers and duties, in
addition to those authorized by other provisions of this Code:
(a) To insure the execution of the provisions of this Code and
to provide for the compliance of the Industry with the provisions
of the Act.
(b) To adopt by-laws and rules and regulations for its procedure.
(c) To obtain from members of its Division through a confidential
agency such information and reports as are required for the adminis-
tration of the Code. In addition to information required to be sub-
mitted to the Code Authority, members of the Industry subject to
this Code shall furnish such 'statistical information as the National
Industrial Recovery Board may deem necessary for the purposes
recited in Section 3 (a) of the Act to such Federal and State agencies
as the Board may designate; provided that nothing in this Code shall
relieve any member of the Industry of any existing obligations to
furnish reports to any Governmental agency. No individual report
shall be disclosed to any other member of the Inlustry or any other
party except to such other Governmientil ,agnc-it. as as niy be directed
by the National Industrial Recovery Board, ai; i to the Coordinating
Committee upon its request pursuant to Article VII, Section 2 (b) of
(d) To use such trade as.,uciation;, and other agencies as it deem-'
proper, subject to the disapproval of he Naltional Industrial Recov-
ery Board, for the carrying out of any of its activities provided for
herein, 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) 1. It being found neces-ary in order to support the admhinis-
tration of this Code, and to maintain the standards of fair compe-
tit.ion established hereunder, and to effectuate the policy of the Act,
each Code Authority is authorized:
(a) To incur such reasonable obligation-is a., are necessary and
proper for the foregoing purposes and to meet such obligations out
of the funds which may be raised as hereinafter prNovided and which
shall be held in trust for the purposes of the Code:
(b) To submit to the National Industrial Recovery Board for the
Board's approval, subject to such notice and opportunity to be
heard as the Board may deem necessary, (1) an itemiized budget of
its estimated expenses for the foregoing purposee, and (2) an equi-
table basis upon which the funds necessary to support such bud-
get shall be contributed by members of the Industry within their
(c) After such budget and basis of contribution have been ap-
proved by the National Industrial Recovery Board, to determine
and obtain equitable contributions as above set forth by all menm-
bers of the Division. and to that end, if neces-ary, to institute legal
proceeding therefore in its own name.
2. Each member of the Industry shall pay his or its equitable
contribution to the expenses of the maintenance of the Code Author-
ity for his Division, determined as hereinabove provided, and sub-
ject to rules and regulations pertaining thereto issued by tih National
Industrial Recovery Board. Only members of the Industry comply-
ing with the Code and contributing to the expenses of its adninis-
tration as hereinabove provided, (unless duly exempted from making
such contribution), shall be entitled to participate in the selection
of members of the Code Authority, or to receive the benefits of any
of it., voluntary activities, or to make u.se of any emblem or insignia
of the National Recovery Administration.
3. Neither Cod& Authority shall incur or pay any obligation sub-
stantially in excess of the amount thereof as estimated in its approved
budget, and shall in no event exceed the total amount contained in the
approved budget, except upon approval of the National Industrial
Recovery Board; and no subsequent budget shall contain any defi-
ciency item for expenditures in excess of prior budget estimates
except those which the National Inidultrial Recovery Board shall
have so approved.
(f) To reco',niiielld to the National Industrial Recov\ery Board
any actions or 11easures deemed advisable, including further fair
trade practi,-e provision, to govern nmemblers of the Industry in their
relations with each other or with other industries; measures for
industrial planning, and stabilization of employment; and including
modifications of this Code which shall become effective as part hereof
upon approval by the National Industrial Recovery Board after
such notice and hearing as the Board may specify.
(g) To appoint a Trade Practice Committee which shall meet
with the Trade Practice Committees appointed under such other
codes as may be related to the Industry for the purpose of formu-
lating fair trade practices to govern the relationship between
employers under this Code, and under such other codes, to the end
that such fair trade practices may be proposed to the National
Industrial Recovery Board as amendments to this Code and such
(h]) To provide appropriate facilities for arbitration, and subject
to the approval of the National Industrial Recovery Board, to pre-
scribe rules of procedure and rules to effect compliance with awards
(i) Any interested parties shall have the right to appeal to the
National Inldstrial Recovery Board under such rules and regulations
as the Board may prescribe in respect to any rule, regulation, or
other course of action issued or taken by the Code Authority or
those to whom it may delegate any part of its powers, provided,
however, that appeals on questions involving the provisions of the
Code relating to hours, wages, and conditions of employment shall
be made in the first instance, to the Music Publishing Coordinating
Conuittee, pursuant to such rules as said Committee, with the
approval of the National Industrial Recovery Board, may prescribe.
Ar rl-.-; VII--OlCGANIZATION, POWERS AND DUTIES OF TITE MTUSIO
PI-U.ISHING COORDINATING COM MITTEE.
SECTIrox 1. Orygaeiton.-(a) There is hereby established a
National Coordinating Committee to be known as the Music Pub-
lishing Coordinating Committee.
(b) The Music Publishing Coordinating Committee shall con-
'idt of five (5) members to be selected as follows:
Each Code Authority shall within fifteen (15) days after its
election as hereinbefore provided and annually thereafter, designate
two (2) members of the Coordinating Committee. and alternate
members, and in the absence of any member of the Committee his
!leigniated alternate shall be entitled to sit upon said Committee.
The fifth member of the Committee shall be selected by the four
members so chosen and an alternate for such fifth member shall be
designated in the same manner. In the event of any resignation
or termination of membership on the Committee of any member
for any cause, the Code Authority originally designating such
member shall designate his successor and alternate.
The members of the Committee for the Divisions and their alter-
nates shall be subject to recall and replacement by the respective
Code Authorities designating such members.
(c) Each member of the Committee shall have an equal vote upon
al1 question emotions, resolutions, or i-sues coming before said
(d) In addition to membership as above provided, there may
be one member, without vote and without cost to the Industry,
to be known as the Administration Member, appointed by the Na-
tional Industrial Recovery Board to serve for such term as the
Board may specify.
SECTION 2. Powers and duftes.-Subject to such rules and regula-
tions as may be issued by the National Industrial Recovery Board,
the Music Publishers' Coordinating Committee shall have the fol-
lowing powers and duties:
(a) To decide questions involving the provisions of this Code
relating to hours, wages, and conditions of employment upon ap-
peal from either Code Authority.
(b) To obtain from the Code Authority such information and
reports as are required for the administration of the powers and
duties specified in paragraph (a) above. All such information and
reports shall be kept confidential and shall not be disclosed except
to a Governmental agency entitled thereto.
(c) To adopt by-laws and rules and regulations for its procedure.
d) To adjust differences that may arise between Code Authori-
ties, or between a member of a Division and a Code Authority to
which such member is not subject.
(e) To represent any Code Authority and/or member of the
Division before the National Recovery Administration, upon the
request of a Code Authority.
(f) To authorize the payment of its reasonably necessary expen-es
of administration, which are to be prescribed in an annual budget,
not to exceed five hundred ($500.00) dollars, which shall be submitted
to the National Industrial Recovery Board for the Board's approval.
(g) To determine and collect its cost of administration, as pro-
vided herein, from the several Code Authorities, or in default thereof,
from the respective members of the Divisions within their par-
ticular jurisdiction. Said costs of administration shall be assessed
against the respective Code Authorities on the basis of the number of
employees in their respective Divisions for the preceding calendar
(h) To bring to the attention of the National Indu-trial Recovery
Board provisions of other codes which apparently conflict with the
provisions of this Code, or which create unfair competitive condi-
tions, and to make recommendations with respect thereto.
(i) To bring to the attention of the proper Code Authorities ques-
tions arising as to jurisdiction out of the definition set forth in
Article II, and to recommend to such Code Authorities the action to
be taken with respect thereto.
(j) To recommend to the National Industrial Recovery Board
any amendments to, additions to, or eliminations from this Code
necessary to correct any such questions of jurisdiction or di.-crepan-
cies, and any such amendment, addition, or elimination shall become
effective upon approval by the National Industrial Recovery Board
after such notice and hearing as the Board may prescribe.
(k) To make recommendations to the National Industrial Recov-
ery Board for the coordination of the administration of this Code
with such other codes, if any, as may be related to or affect members
of the Industry.
(I) To use such agencies as it deems proper for the carrying out
of any of its activities provided for herein, subject to the disapproval
of the National Industrial Recovery Board, provided that nothing
herein shall relieve the Coordinatinig Committee of its duties or
responsibilities under this Code and that such agencies shall at all
times be subject to and comply with the provisions hereof.
(m) If the National Industrial Recovery Board at any time shall
determine that any action of the Coordinating Committee or any
agency thereof may be unfair or unjust or contrary to the public
interest, the National Industrial Recovery Board may require that
such action be suspended to afford an opportunity for investigation
of the merits of such action and further consideration by the Co-
ordinating Committee or agency pending final action which shall
not be effected unless the National Industrial Recovery Board ap-
proves or unless the Board fails to disapprove after thirty (30) days'
notice to the Board of intention to proceed with such action in its
original or modified form.
(n) The powers, authority, and duties of the Music Publishers'
Coordinating Committee relating to the administration and enforce-
ment of this Code shall be strictly limited to those hereinbefore
specifically granted or imposed.
(o) Any interested parties shall have the right to appeal to the
National Industrial Recovery Board under such rules and regulations
as the Board may prescribe in respect to any ruling, regulation, or
other course of action issued or taken by the Coordinating Commit-
tee, or those to whom it may delegate any part of its power.
ARTICLE VIII-TRADE PRACTICE RULES
1. No member of the Industry shall pay or give, directly or in-
directly, or in any other manner present to any performer, singer,
musician, or orchestra leader, employed by or otherwise performing
under contract for another, or to their agents or representatives, any
sum of money, gift, rebate, royalty, favor, or any other thing or act
of value, when the purpose is to induce such person to sing, play, per-
form, or to have sung, played, or performed, any works published,
copyrighted, owned, and/or controlled by such member of the
2. No member of the Industry shall furnish without charge to
any performer, singer, musician, orchestra leader, or other profes-
sional person, any copies other than regular professional copies of
musical compositions published by such member or regularly pub-
lished orchestrations of such musical compositions; it being intended
that no member of the Industry shall furnish special arrangements of
niuch professional copies or such orchestrations to any performer,
singer, musician, orchestra leader, or other professional person, or to
any one designated by, or representing, or associated with such
persons, nor pay such persons for the making of any such arrange-
ments. If, however, any member of the Industry permits such
persons to make a special arrangement, then no member of the Indus-
try shall extract parts or otherwise copy such special arrangement
thus made, either in whole or in part, nor pay for such extractions
or copying; but nothing contained herein shall be deemed to limit
the transposition of any musical work from one key to another.
3. No member of the Industry shall: (a) purchase tickets, or pay
for any advertisement in the program, for any benefit, performance,
dance, or similar function, if the purchase is in effect a gift to, or
a favor for, any performer; (b) pay for any advertisement in a cat-
alogue of a mail-order house; (c) pay for any advertisement in a
dealer's and/or distributor's catalogue or house-organ; (d) insert
advertising in any trade paper, or other like periodical, if the ad-
vertisement is intended to "puff", flatter, compliment, or exploit
any performer, singer, or orchestra leader.
4. No member of the Industry shall pay, present, or otherwise
give any money, service, favor, or thing or act of value, to any
owner, lessee, manager, employee, or other person in control of or
interested in, any talking machine company, radio broadcasting
company or station, electrical transcription company, motion picture
company, or any place of public entertainment, for the privilege of
performing, recording or reproducing, or having performed, recorded
or reproduced, in such places, any works published, copyrighted,
owned and/or controlled by such member of the Industry. Any
member of the Industry may engage the facilities of a broadcasting
studio or hire any theatre or other place of public entertainment for
the purpose of having performed therein any of the musical compo-
sitions published, copyrighted, owned and/or controlled by such
member, provided however, that a public announcement is made at
such performance that the performance is at the expense of such
member and for the purpose of exploiting the said musical composi-
tions of such member.
5. No member of the Industry shall pay, or contract to pay any
compensation, of any nature whatsoever, either as royalties or other-
wise, to any performer, singer, actor, musician or orchestra leader,
or any agent or representative thereof, either directly or indirectly, in
connection with the publication in printed form of any song or other
musical composition, unless such person shall be the bona fide com-
poser, arranger, or writer of the words and/or nmuic of such song or
6. No member of the Industry shall give, permit to be given, or
offer to give, anything of value for the purpose of influencing or
rewarding the action of any employee, agent, or representative of
another in relation to the business of the employer of such employee,
the principal of such agent or the represented party, without the
knowledge of such employer, principal or party. This provision
shall not be construed to prohibit free and general distribution of
articles commonly used for advertising except so far as such articles
are actually used for commercial bribery as hereinabove defined.
7. No member of the Industry shall give away, directly or indi-
rectly, or through any subsidiary or associated company, or through
any person employed by such member, copies of music or other
musical material except for the bona fide purposes of "sampling ",
either to the trade or to professional performers. All such copies
of music and musical material given away under the provisions of
this Article must be plainly marked in some appropriate manner
to indicate that they are not for resale. Each member of the Indus-
try shall keep in some appropriate manner an accurate account of
the merchandise thus given away.
8. No member of the Industry shall publish advertising (whether
printed, radio, display, or any other nature), which is misleading or
inaccurate in any material particular, nor shall any member of the
Industry in any way misrepresent any services, policies, values,
credit terms, products, or the nature or form of the business con-
9. No member of the Industry shall publish or sell any book of
songs, pamphlet, song sheet, or other compilation of songs, or the
lyrics of songs, without the special written permission of the several
copyright owners whose works appear in such compilation.
10. No member of the Industry shall pay, furnish, bestow, or in
any other manner, directly or indirectly, present to any customer,
teacher, or any person, firm, or corporation whatsoever, or to their
agents, or any one representing them, any sum of money, gift, bonus,
refund, rebate, royalty, service, or any other thing or act of value
in excess of published rates and discounts, as a'bribe, secret rebate,
or other inducement to acquire any business or custom from such
person, firm, or corporation.
11. No member of the Industry shall pay transportation charges
in any form whatsoever upon any musical works sold, consigned, or
otherwise designated for shipment to a purchaser or prospective
purchaser, except in instances where musical works are sold for cash
or where delivery is to be made within the recognized local delivery
limits of the city within which such member is situated.
12. No member of the Industry shall wilfully induce or attempt
to induce the breach of existing contracts between competitors and
their customers or sources of supply, either foreign or domestic, or
otherwise interfere with or obstruct the performance of any such
contractual duties or services, with the purpose and effect of hamper-
ing, injuring, or embarrassing competitors in their business.
ARTICLE IX-OPEN PRICE FILING AND COSTS
SECTION 1. When the Code Authority for either Division by a
majority vote shall deem it desirable, each member of the Division
concerned shall file with a confidential and disinterested agent of
the Code Authority, or, if none, then with such an agent designated
by the National Industrial Recovery Board, identified lists of all
of his prices, discounts, rebates, allowances, and all other terms or
conditions of sale, hereinafter in this article referred to as price
terms", which lists shall completely and accurately conform to and
represent the individual pricing practices of said member. Such
lists shall contain the price terms for all such standard products of
the Industry as are sold or offered for sale by said member, and
for such non-standard products of said member as shall be designated
by the Code Authority. Said price terms shall in the first instance
be filed within ten (10) days after the Code Authority for such
Division shall have voted to establish this price filing system. Price
terms and revised price terms shall become effective immediately
upon receipt thereof by said agent. Immediately upon receipt
thereof, said agent shall by telegraph or other equally prompt means
notify said member of the time of such receipt. Such lists and revi-
sions, together with the effective time thereof, shall upon receipt be
immediately and simultaneously distributed to all members of the
Division and to all their customers who have applied therefore, and
have offered to defray the cost actually incurred by the Code Author-
ity in the preparation and distribution thereof, and be available for
inspection by any of their customers at the office of such agent. Said
lists or revisions or any part thereof shall not be made available
to any person until released to all members of the Division and their
customers, as aforesaid; provided, that prices filed in the first in-
stance shall not be released until the expiration of the aforesaid ten
(10) day period. The Code Authority shall maintain a permanent
file of all price terms filed as herein provided, and shall not destroy
any part of such records except upon written consent of the National
Industrial Recovery Board. Upon request the Code Authority shall
furnish to the National Industrial Recovery Board or any duly desig-
nated agent of the Board, copies of any such lists or revisions of
SECTION 2. When any member of the Division has filed any re-
visions, such member shall not file a higher price within forty-eight
SECTION 3. No member of the Division shall sell or offer to sell
any products of the Division, for which price terms have been filed
pursuant to the provisions of this Article, except in accordance with
such price terms.
SECTION 4. No member of the Division shall enter into any agree-
ment, understanding, combination or conspiracy to fix or maintain
price terms, nor cause or attempt to cause any member of the In-
dustry to change his price terms by the use of intimidation, coercion,
or any other influence inconsistent with the maintenance of the free
and open market which it is the purpose of this Article to create.
SECTION 5. The standards of fair competition for the entire Indus-
try with reference to pricing practices are declared to be as follows:
(a) Wilfully destructive price cutting is an unfair method of com-
petition and is forbidden. Any member of either Division of the
Industry or of any other Industry or the customers of either may at
any time complain to the Code Authority of the Division that any
filed price constitutes unfair competition as destructive price cutting,
imperiling small enterprise or tending toward monopoly or the im-
pairment of code wages and working conditions. The Code Au-
thority of the Division concerned shall within five (5) days afford
an opportunity to the member filing the price to answer such com-
plaint and shall within fourteen (14) days make a ruling or adjust-
ment thereon. If such ruling is not concurred in by either party
to the complaint, all papers shall be referred to the Research and
Planning Division of NRA which shall render a report and recom-
mendation thereon to the National Industrial Recovery Board.
(b) When no declared emergency exists as to any given product,
there is to be no fixed minimum biais for prices. It is intended that
sound cost estimating methods should be used and that consideration
should be given to costs in the determination of pricing policies.
SECTION 6. Cost Finding.-Each Code Authority shall cause to be
formulated methods of cost finding and accounting capable of use by
all members of their respective Divisions, and shall submit such
methods to the National Industrial Recovery Board for review.
If approved by the National Industrial Recovery Board, full infor-
mation concerning such methods shall be made available to all mem-
bers of the Division concerned. Thereafter, each member of the
Division shall utilize such methods to the extent found practicable.
Nothing herein contained shall be construed to permit either Code
Authority, any agent thereof, or any member of the Music Publish-
ing Industry to suggest uniform additions, percentages or differen-
tials or other uniform items of cost which are designed to bring
about arbitrary uniformity of costs or prices.
ARTICLE X-EXPORT TRADE
SECTION 1. No provision of this Code relating to prices or terms
of selling, shipping, or marketing, shall apply to export trade or
sales or shipments for export trade. Export Trade" shall be as
defined in the Export Trade Act adopted April 10, 1918.
SECTION 1. This Code and all the provisions thereof are expressly
made subject to the right of the President, in accordance with the
provisions of Sub-Section (b) of Section 10 of the Act, from time
to time to cancel or modify any order, approval, license, rule, or
regulation issued under Title I of said Act.
SECTION 2. Such of the provisions of this Code as are not required
to be included herein by the Act may, with the approval of the
National Industrial Recovery Board, be modified or eliminated in
such manner as may be indicated by the needs of the public, by
changes in circumstances, or by experience.
ARTICLE XII-MONOPOLIES, ETC.
No provision of this Code shall be so applied as to permit monopo-
lies or monopolistic practices, or to eliminate, oppress, or discrimi-
nate against small enterprises.
ARTICLE XIII-PRICE INCREASES
Whereas the policy of the Act to increase real purchasing power
will be made more difficult of consummation if prices of goods and
services increase as rapidly as wages, it is recognized that price in-
creases, except such as may be required to meet individual cost, should
be delayed, and when made such increases should, so far as possible,
be limited to actual additional increases in the seller's costs.
ARTICLE XIV-EFFECTIVE DATE
This Code shall become effective on the second Monday after its
approval by the National Industrial Recovery Board.
Approved Code No. 552.
Registry No. 509-02.
UNIVERSITY OF FLORIDA
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