NAB reports (Jan-Dec 1942)

total salary paid, authorized, accrued or received for the calendar year 1942 exceeds the amount of salary which would otherwise be allowable under paragraph (a) of this section and also exceeds the total salary paid, authorized, accrued or received for the calendar year 1941. (f) Except as provided in paragraph (e) of this sec¬ tion, the provisions of this section shall be applicable to salary paid or accrued after December 31, 1942, regardless of when authorized and regardless of any contract or agi’eement made before or after such date. Sec. 4001.10. Effect of unlawful payments. — (a) If any wage or salary payment is made in contravention of the Act or the regulations, rulings or orders promulgated thereunder, as determined by the Board or the Commis¬ sioner, as the case may be, tbe entire amount of such pay¬ ment shall be disregarded by the Executive Departments and all other agencies of the Government in determining the costs or expenses of any employer for the purpose of any law or regulation, including the Emergency Price Control Act of 1942, or any maximum price regulation thereof, or for the purpose of calculating deductions under the revenue laws of the United States, or for the purpose of determining costs or expenses of any contract made by or on behalf of the United States. The term “law or regulations” as used herein includes any law or regulation hereafter enacted or promulgated. In the case of wages or salaries decreased in contravention of the Act or regu¬ lations, rulings or orders promulgated thereunder, the amount to be disregarded is the amount of the wage or salary paid or accrued. In the case of wages or salaries in¬ creased in contravention of the Act or regulations, rulings or orders promulgated thereunder, the amount to be dis¬ regarded is the amount of the wage or salary paid or ac¬ crued and not merely an amount representing an increase in such wage or salary. In the case of a salary in excess of the amount allowable under section 4001.9 of these regu¬ lations which is paid or accrued to an employee during his taxable year in contravention of the Act or regulations, rulings or orders promulgated thereunder, the amount to be disregarded is the full amount of such salary and not merely the amount representing the excess over the amount allowable under such section 4001.9. (b) Payments made or received in violation of any regu¬ lations, rulings or orders promulgated under the authority of the Act are subject to the penal provisions of the Act. Sec. 4001.11. Exempt employers.— -The provisions of sec¬ tions 4001.6, 4001.7 and 4001.8 of these regulations shall apply only in the case of an employer who employs more than eight individuals. Sec. 4001.12. Salary Allowances under Internal Revenue Code. — No provision of these regulations shall preclude the Commissioner from disallowing as a deduction in com¬ puting Federal income tax any compensation paid by an employer (regardless of the number of employees and of the amount paid to any employee) in excess of a “reason¬ able allowance” in accordance with the provisions of sec¬ tion 23 (a) of the Code. Sec. 4001.13. Statutory Salaries and Wages. — These regulations shall be applicable to any salary or wages paid by the United States, any State, Territory or possession, or political subdivision thereof, the District of Columbia, or any agency or instrumentality of any one or more of the foregoing, except where the amount of such salary or wages is fixed by statute. Sec. 4001.14. Territories and Possessions. — The Board and the Commissioner shall have the authority to exempt from the operation of these regulations any wages or salaries paid in any Territory or possession of the United States where deemed necessary for the effective adminis¬ tration of the Act and these I’egulations. Sec. 4001.15. Regulations of Economic Stabilization Di¬ rector. — The Director shall have authority to issue such regulations as he deems necessary to amend or modify these regulations. Sec. 4001.16. Effect of Executive Order No. 9250. — To the extent that the provisions of Executive Order No. 9250, dated October 3, 1942 (7 F. R. 7871) are inconsistent with these regulations, such provisions are hereby superseded. James F. Byrnes, Economic Stabilization Director. Approved : Franklin D. Roosevelt, The White House. October 27, 1942. PLEASE ANSV/ER PROMPTLY Under date of October 22, the FCC sent out that section of its 1942 financial questionnaire dealing with employees and compensation. This information when compiled will be invaluable to any station wishing to make any general salary adjust¬ ments. The NAB joins the FCC in urging prompt returns. It is to the advantage of every station to do so. COST OF LIVING The U. S. Labor Department reports that the cost of living increased 0.3 per cent from August 15 to September 15, and on the latter date was 20 per cent higher than it was in August, 1939. WAGE-HOUR INSPECTIONS The Wage and Hour Division has announced that here¬ after it will confine its inspections to the period since October 24, 1940. Violations prior to that time will no longer be checked, but there is nothing in the Division’s announcement to preclude employees from bringing suit against their employers for violations before October 24, 1940. CLARK BILL Senator Clark (D. -Idaho) on October 23 introduced the following bill (S. 2874) to remove the AF of M recording ban: To prohibit certain contracts, agreements, conspiracies, and combinations which prevent the making of recordations for use by radio broadcasting stations and coin-operated phonographs. Whereas radio broadcasting is an essential public service and is strongly affected with the national public interest; and Whereas radio broadcasting is of great importance to the successful prosecution of the war; and Whereas the use of recorded music by radio stations is essential to the optimum utilization of radio facilities; and Whereas the cessation of the manufacture of phonograph records and electrical transcriptions would threaten to eliminate the source of newly recorded music : Therefore Be it enacted by the Senate and House of Representa¬ tives of the United States of America in Congress assem¬ bled, That any provision in the Act entitled “An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes”, approved October 15, 1914, to the contrary notwithstanding, it shall be unlawful for any person or any group or organization of persons, or the officers, representatives, or members thereof, to make any contract or agreement, or to engage in any combina October 30, 1942 — 621