Citation
Code of fair competition for the music publishing industry as approved on March 4, 1935

Material Information

Title:
Code of fair competition for the music publishing industry as approved on March 4, 1935
Portion of title:
Music publishing industry
Creator:
United States -- National Recovery Administration
Place of Publication:
Washington, D.C
Publisher:
United States Government Printing Office
Publication Date:
Language:
English
Physical Description:
p. 133-152 : ; 24 cm.

Subjects

Subjects / Keywords:
Music publishing -- Law and legislation -- United States ( lcsh )
Genre:
Federal Government Publication ( MARCTGM )

Notes

General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
"Registry No. 509-02."
General Note:
"Approved Code No. 552."

Record Information

Source Institution:
University of Florida
Rights Management:
This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
650523265 ( OCLC )
ocn650523265

Downloads

This item has the following downloads:


Full Text





NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION
FOR THE

MUSIC PUBLISHING

INDUSTRY


AS APPROVED ON MARCH 4, 1935


UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON: 1935


For sale by the Superintendent of Documents, Washington, D. C. -Price 5 cents


UNIV. OF FL LIB.

U.S. DEPOT TO


U.S. DEPOtTOIRY


Approved Code No. 552


Registry No. 509--02

























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D. C., and by district offices of the Bureau of
foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE
Atlanta, Ga.: 504 Post Office Building.
Birmingham, Ala.: 257 Federal Building.
Boston, Mass.: 1801 Customhouse.
Buffalo, N. Y.: Chamber of Commerce Building.
Charleston, S. C.: Chamber of Commerce Building.
Chicago, Ill.: Suite 1706, 201 North Wells Street.
Cleveland, Ohio: Chamber of Commerce.
Dallas, Tex.: Chamber of Commerce Building.
Detroit, Mich.: 801 First National Bank Building.
Houston, Tex.: Chamber of Commerce Building.
Indianapolis, Ind.: Chamber of Commerce Building.
Jacksonville, Fla.: Chamber of Commerce Building.
Kansas City, Mo.: 1028 Baltimore Avenue.
Los Angeles, Calif.: 1163 South Broadway.
Louisville. Ky.: 408 Federal Building.
Memphis, Tenn.: 229 Federal Building.
Minneapolis, Minn.: 213 Federal Building.
New Orleans, La.: Room 225-A, Customhouse.
New York, N. Y.: 734 Customhouse.
Norfolk, Va.: 406 East Plume Street.
Philadelphia, Pa.: 422 Commercial Trust Building.
Pittsburqh, Pa.: Chamber of Commerce Building.
Portland, Oreg.: 215 New Post Office Building.
St. Louis, Mo.: 506 Olive Street.
San Francisco, Calif.: 310 Customhouse.
Seattle, Wash.: 809 Federal Office Building.










Approved Code No. 552


CODE OF FAIR COMPETITION
FOR THE

MUSIC PUBLISHING INDUSTRY

As Approved on March 4, 1935


ORDER
APPROVING CODE OF FAIR COMPETITION FOR THE MUSIC PUBLISHING
INDUSTRY
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.
Approval recommended:
JACK B. TATE,
Divh'Lon A dmin i i.rator.
WASHINGTON, D. C.,
March 4, 1935.
119376--1603-34---35 (133)












REPORT TO THE PRESIDENT


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.
(134)






135


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
function.
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.
EMPLOYMENT
The Music Publishing Industry is essentially a "white collar"
business with no machine workers, and comparatively few manual






136


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.

WAGES
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.

FINDINGS
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





137


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
Code.
We believe the Code to be fair to labor, to the consumer, and to
the Industry, and for these reasons, therefore, we approve this
Code.
For the National Industrial Recovery Board:
W. A. HARRIMAN,
Administrative Officer.
MARCH 4, 1935.











CODE OF FAIR COMPETITION FOR THE MUSIC
PUBLISHING INDUSTRY

ARTICLE I-PURPOSES

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.

ARTICLE II-DEFINITIONS

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
printed form.
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.
(138)





139


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
herein.
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.
119376--1603-34--35---2





140


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
cmq iluees.
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





141


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.





142


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
AUTHORITIES
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





143


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
leci(le.
(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
qualify.
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-






144


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





1453


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
this Code.
(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
respective divisions:
(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





146


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
other codes.
(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
and determinations.
(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
Committee.






147


(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
year.
(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.






148


(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
Industry.
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.






149


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
IMusical composition.
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.






150


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-
ducted.
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






151


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
price terms.
SECTION 2. When any member of the Division has filed any re-
visions, such member shall not file a higher price within forty-eight
(48) hours.
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.






152


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.

ARTICLE XI-MODIFIcATION

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
11111 11111 262 08850 292811111111111111111111111111111111111
3 1262 08850 2926




Full Text
xml version 1.0 encoding UTF-8
REPORT xmlns http:www.fcla.edudlsmddaitss xmlns:xsi http:www.w3.org2001XMLSchema-instance xsi:schemaLocation http:www.fcla.edudlsmddaitssdaitssReport.xsd
INGEST IEID EOYSRLQWI_K89WWG INGEST_TIME 2012-04-02T14:12:24Z PACKAGE AA00009963_00001
AGREEMENT_INFO ACCOUNT UF PROJECT UFDC
FILES



PAGE 1

Approved Code No. 552 Registry No. 509-o2 NATIONAL RECOVERY ADMINISTRATION CODE OF FAIR COMPETITION FOR THE MUSIC PUBLISHING INDUSTRY AS APPROVED ON MARCH 4, 1935 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON: 1935 I I I For sale by the Superintendent of Documents, Washington, D. C. • --Price 5 cents

PAGE 2

'l'his publication is for lSale by the Superintendent of Documems, Government Printing Office, Washington, D. C., and by district offices of the Bureau of and Domestic Commerce. DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE Atlanta, Ga.: 504 Post Office Building. Birmingham, Ala. : 257 Federal Building. Boston, Mass. : 1801 Customhouse. Buffalo, N. Y.: Chamber of Commerce Building. Charleston, S. C.: Chamber of Commerce Building. Chicago, Ill.: Suite 1706, 201 North Wells Street. Cleveland, Ohio: Chamber of Commerce. Dallas, Tex. : Chamber of Commerce Building. Detroit, Mich.: 801 Fin;;t National Bank Building. Houston, Tf'x.: Chamber of Commerce Building. Indinnapolis, Ind.: Chamber of Commerce Building. Jacksonville, Fla.: Chamber of Commerce Building. Kansas City, Mo.: 1028 Baltimore Avenue. Los Angeles, Calif.: 1163 South Broadway. Louisville, Ky.: 408 Federal Building. Memphis, Tenn.: 229 Federal Building. Minneapolis, 1\linn.: 213 Federal Building. N e w Orleans, La.: Room 225-A, Customhouse. New York, N. Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. Philadelphia, Pa.: 422 Commercial Trust Building. Pittsburg h, Pa.: Chamber of Commerce Building. Portland, Oreg.: 215 New Post Office Building. St. Louis, Mo.: 506 Olive Street. San Francisco, Calif.: 310 Customhouse. SP.attle, Wash.: 809 Federal Office Building.

PAGE 3

Approved Code No. 552 CODE OF FAIR COMPETITION FOR THE MUSIC PUBLISHING INDUSTRY As Approved on March 4, 1935 ORDER APPROVING CoDE OF FAIR CoMPETITION FOR THE Musrc PuBLISHING INDUSTRY 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 b een duly held thereon and the annexed reports on said Code of Fair Com -petition, containing findings with respect thereto, having been made and directed to the President: NOW, THEREFORE, on behalf of the President of the Unitd States, the National Industrial R ecovery Board, pursuant to authority vested in it by Executive Orders of the President, including Executive Order No. 6859, dated September 27, 1934, and otherwise; does h erby incorporate by reference said annexed report and does find that said Code complies in all respects with the pertinent provisions 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 a cts alleged in the petition filed in the United States District Court for the Southern District of New York, August 30, 1934 , and now pending therein, entitled, Unit e d States vs. Ame rican Society of Compos ers, Autho1s, and Publishers; Music Publishers' Protective Ass o c ia tion, e t a.l., Equity No. 78-38 8 , or in any amended or supplemental petition or pe6tions which may be filed therin, or any acts forbid den in any decree or decrees which may be entered pursuant thereto. NATIONAL INDUSTRIAL REcovERY BoARD, By vV. A. HARRIMAN, Ad1nVnistrativ e Offic e r. ApproYal recommended: JACK B. TATE, Div' ision Adndnistrator. WASHINGTON, D. c., March 4, 1935. 119376----1603-34----35 (133)

PAGE 4

REPORT TO THE PRESIDENT The PRE IDENT, The White House. SIR: This is a report on the proposed Code o Fair Competition or the :Music Publishing Industry. A public hearing was held on this proposed Code on July 26 193-1, and full opportunity was given to all interested parties to appear. The proposed Code covers two separate and divisional industries, namely, Standard Publishers and Popular :Music Publishers, and consist o hour, wage, and general labor provisions, administrative provisions and air trade practice provisions. EXTENT OF THE INDUSTRY The Publishing Industry is a relatively small one insofar as number o employees, annual sales, or invested capital, are con cerned, but its product probably touches the liyes o more people than the product o any other industry in this country. It is hard to figure in the life o the average man or woman, a day in which at some time they are not in contact with music. is one o 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 o the comparatively few men and women who are currently and constantly adding to our reservoir o music. Music is the "raw material)' which makes possible the commercial operation o huge business enterprises; it is the keystone in the arch o the structure that supports the entire amusement and entertainment industry, which annually derives rom the American public a revenue o billions o 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 or commercial amusements. Each o 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 or their existence upon music. Yet or every dollar paid by the American people or commercial amuse ments, the creators receive less than one-tenth o 1 ppr cent. The commodities which the Industry vend are divided into two sharply defined classes. These two classes o mu ic are produced by a sub tantially different group o publishers, known in the trade, as Popular ic Publishers and Standard Music Publishers. It is estimated that there are about 75 mu ic publishers in the United States, divided approximately into 30 Standard :Music Publishers, and 45 Popular Music Publishers. The bulk o the total dollar volume is however, by less than one hal o the total number o establishments. (134)

PAGE 5

135 Popular music, is made up of a constant proces s ion of sel ect ion s 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 l ess forgotten. In distributing them timeliness i s 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 frmn one-fourth to one-third of the total sales of all music. Standard mus ic, is composed of numbers of more enduring popularity, many of them classical pieces and grand opera, together with exercise books, song-books, certain types of religious music, etc. Demand for them i s constant. Turnover is comparatively s low. Volume on any one number is small. Gross profit margins are high. Standard mus ic sales u sually are two-thirds to three-fourths of the sales of all music. In geographical distribution the Music Publishing Industry i s heavily concentrated in New York City, which alone normally a c counts for about two-thirds of the total amount of music published. Massachusetts and Pennsylvania are next in importance, each representing about 17 and 7 percent respectively of the total. The principal other states are, California, Ohio, and Illinois . New York City represents about 86 per cent of the total of popular music publis h ed, and about 51 per cent of the total of standard music. A YEXUES OF DISTRIB"GTION Both types of mus ic , popular and standard are sold to ultimate consumer s by the s ame groups of retail stores ; shops specializing in sheet mus ic an l musical instruments (these are tending to be come le ss important), radio and mus ic shops, variety stores, department stores, gift shops, drug stores in certain sections of the country, bo o k stores, cigar sto res , 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 sal es of the produc ts of this Indu try are made through variety stores, stores specializing in musical instruments and s he e t mus ic, and radio and mus ic stores. Publis h ers sell in considerable amounts direct to ultimate con sumers and to commercial and institutional u sers-teachers, sc hools , orchestras, glee clubs, etc. I\{os t tandard publis h ers al s o perform a whole saling function. Y OLUl\IE OF SALES The nfusic Publishing Industry reported sa les of $9,500,000 in 1929. (There is probably an additional million in sa le s represented by firms who did not report.) During the period from 1929 to 1933, the aggregate annual sa les in dollar volume decreased from D.5 milli o n to 5 million, representing a decrease of about 46 per cent. It i s estim .ated that the total s ale s for 1934 will exceed 6 million, representing at lea s t a 16 per cent inc rease in 1934 over 1933. El\IPLOYl\1ENT The l\1us i c Publishing Indu try is essentially a "white collar" business with no machine workers, and comparatively few manual

PAGE 6

136 workers of any sort. The employees of a music publisher are practically 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 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 thos e 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. WAGES The figures submitted by the Industry show that for the corresponding w eek 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 and1934. Those employees who appear in the upper wage brackets did not experience d ecre ases to the same d egree 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 increa e of about 25 per oent above the 1933 average , but was al s o 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 gros s income, was about 20 per cent. During 1934 this per cent inc reas e d to about 25 per cent. FINDINGS 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 : vV e find that: (a) The said Code is well designed to promote the policies and purpos e s of Title I of the National Indu trial Recovery Act including 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

PAGE 7

137 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 fulle t possible utilization of the present{roductive capacity of industries, by avoiding undue restriction o production (except as may be temporarily required), by increasing the consumption of industria] 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 s ions 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 haYe not been deprived of the right to be heard prior to approval of said Code. 1V e believe the Code to be fair to labor, to the consumer, and to the Industry, and for these reasons, therefore, we approve this Code. For the National Industrial Recovery Board: MARCH 4, 1935. w. A. HARRIMAN' Offic e r.

PAGE 8

CODE OF FAIR COMPETITION FOR THE MUSIC PUBLISHING INDUSTRY ARTICLE I-PURPOSES 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 binding upon every member thereof. ARTICLE II-DEFINITIONS 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 inJrinted or other form; and all such persons or entities also engag 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, corporation, or other entity engaged in the business of editing and prepar ing for publication and publishing in printed or other form, musica l 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 bus ine ss 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, mus i ca l works {whether copyrighted or not) of the character generally designated in the Industry as" Popular Music"; and all suc h persons or entities a l so engaged in the business of importing such musical works in printed form. 4. The terms "member of the Industry" and "member of the Division" as u sed herein include, but without limitation, any individual, partnership, association, corporation, or other form of enterprise engaged in the Industry or in a Divis ion 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. (138)

PAGE 9

139 7. The term 'Song Plugger" a s used herein shall l e ignate any indivicTual olely employed by any member of the Industry who se principal business is to induce performers to include in their reper toire the songs published by his employer, or himself to perform s uch ' songs on occasion. 8. The term " Cod Authority" as used herein i defined to mean the Administrative Agenc.y of each Divis ion. 9. The term ":Music Publishers' Coordinating Committee" or . "Committee.:' a. used herein is defined to mean the. Coordinating Agency of the Publishing Industry. 10. The term. "President", "Act", and 'National Industrial Recovery Board:' or "Board" a s u se d herein mean re. pectively, the President of the United States, Title I of the National Indu trial Recovery Act, and the National Industrial Recovery Board, or its uccesc::or. jn office. AnTICLE III-Hou ns SECTION 1. Jlaxhnwn Hmtrs.-(a) No employee .Jutll be permitted to work in ex<.:ess of thirty-eight (38) any one week , or seven (7) hours in any twenty-four (24) hour period. (beO'innino at midnight), except a. herein otherwi e provided. ' 0 0 (b) A tolerance period not to ex cee d forty ( 40) hour. in any one year, shall be allowed for each employee indispen ably neces ary to the conduct of during peak period., during which time employee. may b e permitted to work not exceeding forty six ( 46) hours per week; provided, however, that for any hours or fraction of hours worked in excess of seve n (7) hour. in any twenty-four (24) hour period, or thirty-eight (38) in any one week, :-my s u c h em ployee shall he paid at the overtime rate of time and one-half. SECTION 2. E xception.'3 as to hours.-The provi ions of this Article shall not apply to out ide sale sme n and s uch r ep resentatives known in the Industry a "song pluggers", to employee engage l in emer gency repair, or emergency maintenance work, or to per. ons em ployed in a managerial or executive capacity who are paid regularly thirty-five dollars ($35.00), or more per week; provided, h o'\\e Y er, that employees engaged in emergency maintenance and/or emergency repair work shall be paid at one and one-hal (11j2 ) times their normal hourly rate for all hours worked in exce . . s of eight ( ) hour, per day or forty ( 40) hours per week. SEcTioN 3. Standard lVeek.-N o employee shall be permitte l to work more than six (6) days in any seven (7) clay period, except those employees mentioned in the foregoing Section 2. SECTION 4 . Employm nt by Seve 1 al En1.,ploy e-rs.-N o employ e r shall knowingly permit any employee to work for any time which, when added t() the time spent at work for another employer or employers in this Industry, (or otherwise), exceeds the maximum permitted herein. AnTICLE IV-vV AGEs SECTION 1. ... lfinimwn Wages.-Except a s h e reinafter provided, no rmployee shall b e paid in any pay perioclle s than at a rate of dollars ($1 5.00) per week. 11U376•----1603-34----35----2

PAGE 10

1TIOX 2. X o employee engagf'(1 in pa rt-t.ime employment, hall be paid at n rat<' les than forty-two cents per hour. 'F.cTIOX 3. Offic boy office girl..,, an 1 me senger under 18 year. of age may Le employed at n rate not le than eighty (80) per cent of the minimum wage prmicled in ection 1. No n1ore than twenty (20) per cent of the total number of emploYee of any member of the Indn tr hall be in thi category at any one time provided, however, that each member of the Indu try shall be entitlecl to emp loy at lea t one s uch employee. ECTrox 4. The foregoing proyiion s are intended to c. tabli h only minimum and not ma:s:il11um wage require1nent . SE -rro4 5 . Female employee perfonning substantially the . a me 'TOJ' k as mal e employee. . hall receive the . :ame rate of pay a: male employee. . )X G. A per on who e earning capacity is limited Lerausc of age, ph) i c al or mental handicap or other infirmity, may be em ployed on lifoht work at a wage below the minimum established by thi i the employer obtains from the State Authority nated by the '[ nited tate Department of Labor, a cerhfieate authorizing hi:S employment at " uch wage and for such hours as hall be . tatecl in the certificate. Each employer shall file monthly with the Code Authority a list of all uch per. on employed bv him, howing the wages paid to and the maximum hour of wori{ for, uch emplo. ee . SECTIOX 7. This Article e tnbli he minimum rate of pay which shall apply irre. pective of whether an employee i actually com pen ated on a time rate, piece-work, or other basi .... SECTION 8 . No employer shall mak"' reduction in the full time weekly earning of any employee becau e his normal full-time wceklj hour are reduced by the proYi ion of Article III of this Code . In no eYent shall hourly rate. of pay be reduced because of the prO\i s ion , of this Code, irre pectiYe of whether compcn ation i actually paid on an hourly, weekly, or other ba . is, nor hall any wnge be at le ss than the minimnm rate herein provided. 'Vithin thirty (30) days of the effectn e date hereof (unles such adjustment ha. b e en made theretofore) each employer hall adjust the chedule of ''ages of hi employee. in suc h an equitable manner a will c-onform to the provi ion hereinaboYe set forth, and till pre-erve wage differentials rea onably proportionate to tho e in effect prior to the effectiYe date of thi except that thiparagraph shall not apply to employee earnin thirty-fh e dollar ($3w.OO) per week or more. SEcTION 9. No employer shall modify hi or it. e . tabli. heel prac tices as to vacation periods, leaYes of absence and/ or temporary ab ences from 'York with the l)Urpose and effect of reducing uch privileges heretofore granted employees. SEcTION 10. An employer hall make payment of all wages due at least every two weeks, and alaries at lea t at the end of e very month in lawful currency or by negotiable check therefor, payable on demand. If wages are paid by check the employer shall provide reasonably accessible facilitie for cashing checks at face value without expense to the employee. The employer shall also provide such

PAGE 11

141 identification as is neces ary to utilize thee fac:ilitie. . These ''"age shall be exempt from any charges, fines, or or payment of pensio ns, 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 .AKD OTHER Pnovr. IONs SECTION 1. Ohild 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 leemed to have c omplied with this provision as to age if he shall have on file a c ertificate or permit, duly signed by the Authority in such State empowered to issue employment or age certificates or permits, showing that the employee is of the required age, except that persons under the age of sixteen (16) may be employed so lely a performers , s ubject to the local law s, and regulation of the Code Authority. SECTION 2. (a) Provisions f'rom the Aat.-Employees shall have the right to organize and bargain collectively through repre entatiYes of their own choosing, and . hall be free from the interference , retraint, or coercion of employers of labor, or. their agents, in the designation of such representati,e or in self-organization or in other concerted a c tivities for the purpose of collective bargaining or other mutual aid or protection. (b) No employee and no one . eeking employmant hall be required as a condition of employment to join any company union or to refrain fr01n joining, organizing or a ss isting a labor organization of his own choosing, and (c) Employers shall comply with the maximum hours of labor, minimum rate of pay, and other condition. of employment, approved or prescribed by the Pre ident. SECTION 3. Evasion Through S1J.bterf-uge.-N o employer hall recla sify employees or duties of occupation p erformed or engage in any other subterfuge so as to defeat the purposes or provision of the Act or of this Code. S e c tion 4. No employee now employed ut rates in excess of the minimum shall be discharged and r ee mployed at a lower rate for the purpose of e .vading the provisio n s of this Code. SECTION 5. Standards fo?' Safety and H ealth.-Every employer shall provide for the s a . :fet y and hea.lth o:f employees during the. hours and at the places of their employment. Standards for safety and health shall b e submittd by the Code Authority to the National Industrial Recovery Board within sixty days a.fter the. effective date of the Code. After approval, such standards shall become the minimum standards of safety and health for all m em bers of the SEcTION 6. Stat e l aws.-N o provision in this Code shall supersede any State or Federal Lav1 whi ch impo . es on employers n1ore stringent requirement s a s to age of employee , wages, hours of work, or a t o safety, health, sanitary: or general working conditions, or in '"urance, or fir e protection, than are impo . _ ed by this Code.

PAGE 12

1-!2 7. Po:d;11g-All C'mployers hall po:::.t and keep posted copit>s of the full iabor proYisions of this Code in conspicuous places n'.
PAGE 13

14:3 made by the rcmaini11p: o the CoLli:' from the Industry group in which the vacancy occuned. Subsequent elections shall be conducted in the sam manner as above described, except that the Code Authority of the Standard nlusic Publishing Division shall act in place of the Code Committee, nnles , the National Indu trial Reco>::ery Board ..,hall otherwise xcept that the Code Authority of the Popular Publishing shall act in place of the Code Committee, unless tll" National Industrial Recovery Board slwJl otherwis e decide. SEC'l'ION 2. In addition to the membership as abo\e provided, there may be one: member, without Yote and without co t to the Industry, for each of the Code Authorities e stablished in accordanc e with Section 1 of this Article, to be known as Administration to be appointed by the N ationul Industrial Recovery Board to s erve for . nch term as the Board may ;;;pecify. SECTION 3. The Code Committee of the Standard lYinsic Publish ers and the Code Committee o the Popular Mu ic Publis hers, a1e. hereby de s ignated a s tem1J-orary Code Authorities and authorized to perform the ne ce sHry admini trntivf) functions for their _ re s pec tive Divisions until th" Cod Authorities hereinaboYe provided for .. hall have been selected. SECTIO::'{ 4. Each trade or industrial as.'ociation directly or indi rectly participating in thP Slection or activitie of the Code Au-

PAGE 14

144 thorit.y :hall (1) no jner1uitable re . triction on member and (2) . ubmit to the National In ln. trial Reco\er y B oa r d true cop ie of it. article of as ociation, by laws: regul a tiOn , and anv amendment. when male thereto, together with ... uch other information a to member ... hjp. organization, and activi tie. a the N ationa l Indu .. .Jrial Recmery Board may deem nece .... _ary to effectuate the purpo e of the Act. l ECTIOX n. In order that both Code Authoritie ha ll at all time b . truly r epre entative of the Indu try and in other re pects com.pl yrith the pro vi of the the National Indu trial Reco\er Board1nay pre cribe uch hearing a . the Board ma . y deem proper and thereafter if the Board hall find that. a Code Authority i s not trnlj repre entati'e or doe not in ther re pect comply with the provision . of the Act may require an appropriat e modification of the Cod e Authorit}. ECTIOX 6 . .L othing c ontained in thi. Code :hall con titute the Jncmber of a Code Authority partners for any purpo e . Nor hall any m mber of a Code Authority be liable in any manner to anyone for any act of any other member, officer: agent or emp l o ee of the ode Nor hall any 1nember of a Code Authority exeri ing rea onablc diligence in the conduct of hi lutie hereunder, be liable to anyone for any a tion or ion t act under thi except for hi own willful malfea ance or nonfea ance. 7 . If the National Indu trial Re oYer Board . hall at an. time determine that any action of a Code Authority or agency thereof may be unfair or unju t or contrary to the public the National Indn. trial RecoYery Board ma\ require that , n h action be u pended to afford an opportunity for inve tigation of the meritof . uch action and further consi leration b uch Code or agen c y , pending final action which shall not be effect i ve unle. the X ational Indu trial Reco\ery Board appro\es or unl ethe Board hall fail tD eli appro\e after thirty (30) day notice to the Board of intention to proceed ''ith uch action in i t original or modifie l form. SECTION" • Po wers and Duties. ubject to . nch rule. and regul a tion a may be i sued by the X ational Indn trial R ecovery Board each ode _-\.uthority .... hall haY e the follo\\ing power and dutie , in. addition to authorized bv other of this Code : (a) To in "ure the execution of the pro vi . ion of this Code and t o proYide for the compliance of the Inclu try with the provi ion of the Act. (b) To a clop by-law and rule and regulation for it procedure. (c) To obtain from n1ember of it Diyiion through a onfi lential age n y uch information and report a are required for the adminL tratioil of the ode . In addition to information required to be ub mittecl to the Code An tho ity . member of the Indu try nbjec to this ode .Jwll furni h uch al information a the National Industrial R eco Y e r. ' Board may deem f r the purpo . recited in ection 3 (a) of the Act to . uch Federal and tate agencie . a the Board mav de ignate pro,ided that nothing in thi Cod relieYe any m e n1ber of the Incln try of an' obliO'ation to furnis h r 1)orL to TOYernmentnl agenc:y. ... o indiYi<.lual report .... hall be di .... elo::,ed to an' other mcmb r of th liH1n trv t r anv other

PAGE 15

lj_ party except to uch other Govcnuncntnl ag(•ncies n . _ ma.v Le chrcctccl by the National Industrial Recovery Hoar 1. antl to the Coordinating Committee upon its reqne:t pursuant to Arti.cl YII, 'ection 2 (b) of this Code. (d) To use :uch trade a sociat i ons and other as it deems proper, s ubject to the eli of the National Industrial RecoY ery Board, for the, carrying out of any of its actiYities proYided for herein, provided that nothing herein shall relieve the Code Authority of its duties or re pon sibi litie under this Code, and that s u ch trade association. an l agencie s "'hall at all time be s ubject to and comply with the prm isions hereof. (e) 1. It being found nece . ary in order to support the . allminis tration of thi Code, and to maintain the s tanr:lard s of fair competition established hereunder, and to effectuate the policy of the Act eac h Code Authority j authorized: (a) To incur snc h reasonabl e obligations ns arc ary and proper for the foregoing purpose. and to me-t s u c h obligations out of the funds which may be. rai eel as hereinafter proYided and. '"hich sha ll be held in trnst for the purpos s of the Code: (b) To submit to the N ationnl Indu tr ial RecoYery Board fol' th-. approV"al , s ubject to s uch notice and opportunity to b heard as the Boanlmay deem ary, (1) an itemized budget of it cstima tad expense. for the foregoing purposls and ( 2) an equi table basi s upon which the funds necec::ary t o support n ch budget shall be contributed by memb ers of the IncltL'try within their r espective clivi. ion s : (c) After s uch budget and ba . i of contribution have been ap proved by the National Indn trial RocoYery Board, to determine ancl obtain equitable contributions aboYc et forth by all mem ber of the Divi ion , and to that end, if ne cessary, to institute legal p1oceeding therefor in its own name. 2. Ea-ch m embe r of the Industry shall pay hi. or it. equitable contribution to the expenses of the mainttmance of the Code Authority for his Di\ision, determined as hereinabove provided, and sub ject to rule s and regulations pertaining thereto i._. :;ued by the National Indn trial R ecoYery Boarcl. Only member of the comply jug with the Code nncl contributing to the expenses of its admini tration a s hereinaboYe provided, (unle s duly exempted from1naking .-uch contribntion), -.:hall be entitled to participate in the select ion of members of the Code Authority, or to re ceive the benefit. of any of its voluntary actiYities, or to make u se of any emblem or in-ignia of the National Recovery Administration. 3. Neither Code Authority hall incur or pay any obl]gation s ub stantially in excess of the amount thereof a. estimated in its approved budget, an l shall in no event exceed the total amount contained in th approYecl budget, except upon approval o the National Industrial Recovery Board; and no subseq uent budget hall contain any defi ciency item for expenditures in excess of prior budget estimate. e:s:cept tlw. c which the National Industrial RecoYery Boar l hall have s o approYec.l. (f) To re ommen d to the Kational Industrial R"coYerr Boarcl any actions or 1neasnre deemed advisable, including furth er fair trade practice provi ion . to goYern membt:-r s of the Industry in their

PAGE 16

146 relations with each o ther or \Yith othel' industries; measures for industrial planning. nnd stablization of employnient; and including modifications of thi. Code which shall become effective ' as part hereof upon approval by the National Industrial Recovery Board after .-uch 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 a s may b e related to the Industry for the purpose of formulating fair trade practices to govern the relationship between employers under this Code, and under such other codes, to. -the end that suc h fair trade practices may be proposed to the National Industrial R ecoYery Board a . amendm . ents to this Code and s uch other codes. (h) To provide appropriate fac ilities for arbitration, and subject to the approntl of the National Industrial Recovery Board, to presc ribe rules of procedure and rules to effect compliance with awards and detenninations . (i) Any interested partie shall have the right to appeal to the 'N a.t.ional Industrial R ecovery Board under suc h rules and regulations as the Board may prescribe in respect to any rule, regulation. or other ourse of a c tion is. ued or taken b y the Code Authority or those to whom it may delegate any part of its powers, provided, however, that appe al s on que s tions involving the provisions of the Code relating to honrs, wa oes, and conditions of employment shall b e made h1 the first instance to the J Hn s i c Publishing Coordinating Conunittee, pursuant to s uch rules as said Committee, with the appron1l of the National Indu -trial R eco very Board, may prescribe. ARn 'UJ \II-ORGANIZATION, PowERS AND DunEs m' THE sro PunLISHING CooRDINATING SECTION 1. Organizat-ion.-(a) There i s hereby established a National Coordinating Committee to b e known a s the Music Pub li. hing Coordinatino Committee . (b) The Publishing Coordinating Committee shall con si . t o five ( 5) member s to be sel ec ted as f ollows: Eac h Code Authority shall within fift ee n (15) days after its e lection as hereinbef ore provided and annually thereafter, designate two (2) member s of the Coordinating Committee , and alternate membe rs;, and in the absence of any memb e r of the Committee his designated alternate shall be entitle d to sit upon said Committee. The fifth member of the Committee shall b e se l ected b y the f ou r so c h osen and a n alternate for s uch fifth member shall b e designated in the s ame m a nner. In the even t of any resignatio n or termin ation of member ship on the Committee of any memb e r for any cause, the Cod e Authority originally s uch member shall de ignat B his sncce sor and alternate. The memb ers of the C ommittee for the Divisions and their alter nates shall b e . ubi ect to recall and replacement by the re spect iv e Code Anthoritie. d esignating s u c h m em b e r s . (c) Eac h m ember o the Committee shall have an equa l Yote upon all questions, motions, r e . o lution s , or i s nes c oming befo re s aid Committee.

PAGE 17

147 (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. Powe rs a'nd d1JJ.ties.-Subject to such rules and regulations as may be issued by the National Industrial R ecovery 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 appeal 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 disclos e d 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 Authorities, 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 R ecovery Administration, upon the request of a Code Authority. (f) To authorize the payment of its re asonably necessary expenses of administration, which are to be prescribed in an annual budget not to exceed five hundred ($500.00) dollars, whi c h sha ll b e ubmitted to theN ational Industrial Recovery Board for the Board's approval. (g) To determine and collect its cost of admini tration, as provided herein, from the several Cod e Authorities, or in default thereof , from the respective members of the Divisions within their particular jurisdiction . Said cos ts of administration shall b e assessed against the res pective Code Authorities on the b as i s of the number o f employees in their respe c tive Divis ions for the preceding calendar year. (h) To bring to the attention of the National Indu trial Recovery Board provisi ons of other codes which apparently conflict with the provisions of this Code, or which create unfair competitive conditions , and to make recommendations with r espect thereto. (i) To bring to the attention of the proper Code Authorities ques tions arising as to jurisdi ction out of the definition set forth in Article II, and to recommend to s u ch Code Authorities the action to be taken with r espect thereto. (j) To recommend to the National Industrial Recovery Board. any amendments to, additions to, or e limination s from this Code necessary to correct any s u c h questions of jurisdict ion or discrepan 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 R eco v 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.

PAGE 18

148 (1) To u c s u c h 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 Recoyery Board, provided that nothing herein shall relieT'e the Coordinating Committee of its duties or responsibi litie s 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 enforcement of this Code shall be stnctly 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 cour e of action i sued or taken by the Coordinating Commit tee, or those to whom it may delegate any part of its po\\er. 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, mus ician, 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, favori or any other thing or act of Yalue, when the purpose is to induce sue 1 person to sing, play, perform, or to have sung, played, or performed, any works publis hed, copyrighted, owned, and/or controlled by such member of the Industry. 2. No member of the Industry shall furnish without charge to any performer, singer, musician, orchestra leader, or other profes siona l person, any copies other than regular professional copies of musical compositions published by s uch member or regularly publi heel orchestrations of s uch musical compositions; it being intended that no member of the Industry shall furnish pecial arrangements of s u ch professional copies or such orchestrations to any performer, singer, mu ician, orchestra leader, or other professional person, or to any one designated by, or representing, or a s ociated with such persons, nor pay such persons for the making of any such arrangements. If, how eYer, any member of the Indu try permits such p e r sons to make a special arrangement the n no member of the Industry sha ll extract parts or other\\i e copy such pecial 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 tran position of any musical work from one key to another.

PAGE 19

149 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 men1ber of the Industry shall pay, present, or otherwise give any money, service, favor, or thing or act of value, to any owner, lessoo, manager employee, or o ther person in control of or interested in, any tall\:ing machine company, radio broadcasting company or station, electrieal 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 copyrighted, owned and/or controlled by such member, provided however, that a public announcement i s 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 whatsotwer, either as royalties or other wise, to any performer, singer, actor, musician or orchestra l eader, 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 po ser, arranger, or writer of the words and/or music of such song or musical composition. 6. No member of the Industry shall give, permit to be given, or offer to give, anything of va lue for the purpose of influencing or rewarding the action of any emp loyee, agent, or representative of another in relation to the business of the employer of such employee , the principal of s uch 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 hereinaboYe defined. 7. No member of the Industry shall give away, directly or indirectly, 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 profess ional 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 Industry shall keep in some appropriate manner an accurate account of the merchandise thus given away.

PAGE 20

150 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 sha ll 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 ducted. 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 corporat. ion whatsoever, or to their age nts, or any one representing them, any swn 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 hampering, injuring, or embarrassing competitors in their busines s . ARTICLE IX-OPEN PRICE FILING AND CosTs SECTION 1. vVhen the Code Authority for either Divis ion 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 thi 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 sa le by said member, and for such non-standard products of aid member as shall be designated by the Code Authority. Said price terms shall in the first instance Le filed within ten (10) days after the Code Authority for such Division shall have voted to establ i h this price filing system . Price terms and revised price terms shall become effect ive immediately upon receipt thereof by said agent. Immediately upon receipt thereof, aid 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

PAGE 21

151 immediately and simultaneously distributed to all member s of the Division and to all their customers who have applied therefor, 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 Divis ion and their custom ers, 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 s h all 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 designated agent of the Board, copies of any such lists or revisions of price terms. SECTION 2. When any member of the Divis ion has filed any revis ions, such member shall not file a higher price within forty-eight (4 8) hours. SECTION 3. No member of the Divis ion 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 agreement, understanding, combination or conspiracy to fix or maintain price terms, nor cause or attempt to cause any m embe r of the Industry to change his price terms by the use of intimidation, coercion, or any other influence incon s i sten t with the maintenance of the free and open marke t which it is the purpos e of this Article to create. SECTION 5. The standards of fair competition for the entire Industry with refere nce to pricing practices are declared to b e a s follows: (a) Wilfully destructive price cutting i s an unfair method of competition and is forbidden. Any member of either Division of the Industry or of any other Industry or the customers of eithe r may at any time complain to the Code Authority of the Division that any filed price con stitutes unfair competition a de struc tiYe price cutting, imperiling small enterprise or tending toward monopoly or the impairment of code wages and working condi tion s . The Code Authority of the Division concerned shall within five ( 5) days afford Hn opportunity to the member filing the price to answer such complaint and shall within fourtee n (14) days make a ruling or adjustment 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 recommendation thereon to the National Industrial Recovery Board. (b) 'Vhen no declared emergency exi s ts as to any given product, there is to be no fixed minimum bas i s for prices. It i s intended that sound cost estimating methods should be used and that con sideration should be given to costs in the determination of pricing policies. SECTION 6. Cost F inding.-Each Code Authority shall cause to be formulated methods of cost finding and accounting capable of use by all members of their respective Divi ions, and shall submit s uch methods to the National Industrial Recovery Board for review. •

PAGE 22

• 152 If a.Pproved by the National Industrial Recovery Board, full infor matiOn concerning such methods shall be made available to all members 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 Publishing Industry to suggest uniform additions, percentages or differentials 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 elling, 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. ARTICLE SECTION 1. This Code and all the provi ions thereof are expres ly 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 provi ion of this Code shall be so applied a to permit monopo lies or monopolistic practices, or to eliminate, oppress, or eli criminate a o ain t small enterprises. ARTICLE XIII-PRICE INCREASES 'Vhereas the policy of the Act to increase real purchasing power will be made 1nore difficult of consummation if prices of goods and services increase as rapidly as wages, it is recognized that price increases, 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-EFFECTI\'E DATE Thi Code shall become effective on the second after its approval by the National Industrial Recovery Board. ApproYed Code No. 552. Registry No. 509-02. 0

PAGE 24

UN IVERSITY OF FLORIDA II I 1\ \IIIII Ill Ill IIIII I IIII I I Ill\ IIIII\ Ill\ Ill \\II Ill\ I l l IIIII I I 3 1262 08850 2926