NAB reports (Jan-Dec 1942)

TITLE V Profits and Subsidies 1. The Price Administrator in fixing, reducing, or in¬ creasing prices, shall determine price ceilings in such a manner that profits are prevented which in his judgment are unreasonable or exorbitant. 2. The Director may dii’ect any Federal department or agency including, but not limited to, the Department of Agriculture (including the Commodity Credit Corporation and the Surplus Marketing Administration), the Depart¬ ment of Commerce, the Reconstruction Finance Corpora¬ tion, and other corporations organized pursuant to Section 5d of the Reconstruction Finance Corporation Act, as amended, to use its authority to subsidize and to purchase for resale, if such measures are necessary to insure the maximum necessary production and distribution of any commodity, or to maintain ceiling prices, or to prevent a price rise inconsistent with the purposes of this Order. TITLE VI General Provisions 1. Nothing in this Order shall be construed as affecting the present operation of the Fair Labor Standards Act, the National Labor Relations Act, the Walsh-Healey Act, the Davis-Bacon Act, or the adjustment procedure of the Railway Labor Act. 2. Salaries and wages under this Order shall include all forms of direct or indirect remuneration to an employee or officer for work or personal services performed for an employer or corporation, including but not limited to, bonuses, additional compensation, gifts, commissions, fees, and any other remuneration in any form or medium what¬ soever (excluding insurance and pension benefits in a reasonable amount as determined by the Director) ; but for the purpose of determining wages or salaries for any period prior to September 16, 1942, such additional com¬ pensation shall be taken into account only in cases where it has been customarily paid by employers to their em¬ ployees. “Salaries” as used in this Order means remunera¬ tion for personal services regularly paid on a weekly, monthly or annual basis. 3. The Director shall, so far as possible, utilize the information, data, and staff services of other Federal departments and agencies which have activities or func¬ tions related to national economic policy. All such Federal departments and agencies shall supply available informa¬ tion, data, and services required by the Director in discharging his responsibilities. 4. The Director shall be the agency to receive notice of any increase in the rates or charges of common carriers or other public utilities as provided in the aforesaid Act of October 2, 1942. 5. The Director may perform the functions and duties, and exercise the powers, authority, and discretion con¬ ferred upon him by this Order through such officials or agencies, and in such manner, as he may determine. The decision of the Director as to such delegation and the manner of exercise thereof shall be final. 6. The Director, if he deems it necessary, may direct that any policy formulated under this Order shall be enforced by any other department or agencv under any other power or authority which may be provided by any of the laws of the United States. 7. The Director, who shall be appointed by the President, shall receive such compensation as the President shall provide, and within the limits of funds which may be made available, may employ necessary personnel and make pro¬ vision for supplies, facilities and services necessary to discharge his responsibilities. FRANKLIN D. ROOSEVELT THE WHITE HOUSE, October 3, 1942. BROADCASTING NOT COVERED BY PREMIUM PAY ORDER The broadcasting industry is not covered by President Roosevelt’s Executive Order on “premium pay.” This was made clear October 3 by a statement from Secretary of Labor Frances Perkins, in which she said the order applied only to industries engaged in manufac¬ ture of war products. The previous day the NAB had applied for an exemption for the broadcasting industry, following a meeting of the Wage and Hour Committee on the subject. The principal effect of the Executive Order would have been to require those stations not now so doing to pay time and one half for holiday work. Sales TAX EXEMPTION OF ADVERTISING Paul B. West, President of the Association of National Advertisers, has issued a most helpful statement regarding the recent order dealing with the question of advertising expense as an allowable item of cost on government war contracts (see NAB Reports, p. 580, and also p. 515). The warning sounded by Mr. West regarding the use of this exemption as an argument for advertising is most timely. The release follows: “The statement of Commissioner of Internal Revenue Helvering as to the deductibility of advertising expense on corporate income tax returns is a welcome amplifica¬ tion of Secretary Morgenthau’s statement before the Joint Congressional Committee on Taxation and bears out the clarification of the subject sent out by the Association of National Advertisers with the approval of the Internal Revenue Bureau on August 28,” said Mr. West. “Now, when our nation is at war, there is no room for uncertainties and misunderstandings. Such clear and forthright statements as that of Commissioner Hel¬ vering are of inestimable aid to business in allaying fears and permitting sound planning. The statement shows a sympathetic understanding of the problems of business and a desire to be fair and cooperative. In our conferences with Bureau officials, we found their attitude to be wholly one of cooperation and it was most gratifying to have this response to our request after pointing out the need for business to have such clarification. “Quite naturally, the Bureau is charged with upholding the law and will have no patience with any taxpayer who seeks to avoid proper payment of taxes. This is just and reasonable. Excessive advertising expenditures, as ex¬ cessive expenditures of any kind, should not be deductible, especially in this war period. “We have noted a tendency in some quarters on the part of over-zealous advertising salesmen to use the excess profits tax as an argument for the expenditure of increased sums on advertising. I do not believe that such selling reflects the judgment or the wishes of publishers or ladio station owners and that this practice is very much the exception. Nevertheless it is to be deplored and dis¬ couraged as strongly as possible. To attempt to sell ad¬ vertising on a false basis implies that the publication or radio station lacks merit. We are hearing from A.N.A. member advertisers about this type of solicitation and they deeply resent it. It is obviously an unsound business practice and has always been regarded so. For salesmen to try to take advantage of the situation for selfish gain not only does harm to all advertising and business but in these times is wholly unpatriotic. “There is plenty of occasion for business to use adver¬ tising in a perfectly legitimate and justifiable way. for advertising as an essential tool has new responsibilities and new uses for serving the ends of business and of the October 9, 1942 — 591