NAB reports (Mar-Dec 1933)

be made and to trive assistance to members of the industry in improving methods, or in prescribing a uniform system, of account¬ ing and reporting. All individual reports shall be kept confidential as to the members of the industry and only general summaries thereof may be published. (c) To receive complaints of violations of this Code, make inves¬ tigations thereof, provide hearings thereon and adjust such com¬ plaints, and bring to the attention of the Administrator for prose¬ cution, recommendations, and information relative to unadjusted violations in no event shall the Code Authority proceed to prosecute without notice to and approval by the Administrator. (d) To use such trade associations and other agencies as it deems proper for the carrying out of any of its activities provided for herein and to pay such trade associations and agencies the cost thereof, provided that nothing herein shall relieve the Code Author¬ ity of its duties or responsibilities under this Code and that such trade associations and agencies shall at all times be subject to and comply with the provisions hereof. (e) To coordinate the administration of this Code with such other codes, if any, as may be related to the industry, or any sub¬ division thereof, and to delegate to any other administrative au¬ thority, with the approval of the Administrator, such powers as will promote joint and harmonious action upon matters of common interest. (/) To secure an equitable and proportionate payment of the expenses of maintaining the Code Authority and its activities from members of the Industry. (g) To cooperate with the Administrator in regulating the use of the N. R. A. Code Insignia solely by those employers who have assented to, and are complying with this Code. (h) Where the operations of the provisions of this Code impose an unusual or undue hardship upon any broadcaster or network such broadcaster or network may make application for relief to the Administrator or to his duly authorized agent, and the Admin¬ istrator or his agent may, after such public notice and hearing as he may deem necessary, grant such exception to or modification of the provisions of this Code as may be required to effectuate the purpose of the National Industrial Recovery Act. (?) To initiate, consider and make recommendations for the modification or amendment of this Code. 11. An appeal from any action by the Code Authority affecting the rights of any employer or employee in the Industry may be taken to the Administrator. ARTICLE VII Trade Practices 1. Rates, Commissions and Discounts. ( а ) Each broadcaster and network shall forthwith publish and file with the Code Authority a schedule of all its rates regularly and currently charged to advertisers for the use of broadcasting time, together with all discounts, rebates, refunds and commissions which shall be allowed to the users of such time or to their recognized agents, such schedule to be known as the Rate Card. No Rate Card or rate charged thereunder shall be modified until fifteen days after the filing with the Code Authority of the Rate Card with the proposed modifications. Charges for the use of broadcasting time, and discounts, rebates, refunds and commissions allowed to the users of such time or their recognized agents shall be in exact accordance with such Rate Card except that under conditions not specifically covered by the Rate Card, charges for the use of broadcasting time may be at special rates provided a full written statement of such special rates and conditions is filed immediately with the Code Authority, which authority shall be authorized to publish such statement in full. In no event shall modifications of the Rate Card, special rates or special conditions violate any of the terms of this Code. (б) Any attempt to evade the provisions of this Code through the offer or payment of excessive or unearned commissions, dis¬ counts, rebates, refunds, gratuities, or free time (other than legiti¬ mate program announcements) and any business done on a cost per-inquiry, contingent, or percentage basis shall be deemed unfair trade practice within the meaning of the Code. 2. Special Services and Facilities. (a) No broadcaster or network shall supply for commercial pro¬ grams special technical facilities, including outside pickups or wire lines, at less than the actual cost to it of such special services or facilities unless a full written report is filed immediately with the Code Authority, and in no event shall such facilities be supplied below cost for the purpose of evading the provisions of this Code. 3. Sales of Talent. Literary and Musical Rights. Recordings, etc. (a) No broadcaster or network shall sell or furnish for commer¬ cial programs, talent or special recordings, or literary or musical rights of any sort, not provided for in the Rate Card, at less than the actual cost to the broadcaster or network of such talent or special recordings, or literary or musical rights, unless a full written statement of such sale below cost is filed immediately with the Code Authority, and in no event shall such sale below cost be for the purpose of evading the provisions of this Code. 4. General Provisions. (a) This Code shall apply to all contracts made on or after the date on which this Code becomes effective and after that date shall apply to all renewals or extensions made of contracts made prior thereto unless there is vested in a party other than the broadcaster or network a right to renew or extend the then-existing contract. ( b ) No broadcaster or network shall defame or disparage a com¬ petitor, directly or indirectly, by words or acts which untruthfully call in question such competitor’s business integrity, ability to per¬ form contracts, credit standing, or quality of service. (c) No broadcaster or network shall claim for its service a char¬ acter, scope or quality which cannot be substantiated, nor shall it claim as regular characteristics of its service features which it knows to be purely temporary or accidental. (d) No broadcaster or network shall accept or knowingly permit any performer, singer, musician, or orchestra leader regularly em¬ ployed by such broadcaster or network to accept any money, gift, bonus, refund, rebate royalty service, favor or any other thing or act of value from any music publisher, composer, author, copy¬ right owner or the agents or assignees of any such persons for per¬ forming or having performed any musical or other composition for any broadcaster or network when the purpose is to induce such persons to sing, play, or perform, or to have sung, played, or per¬ formed any such works. (e) No broadcaster or network shall knowingly permit the broad¬ casting of any advertisement of, or information concerning any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any list of the prizes drawn or awarded by means of such lottery, gift enterprise, or scheme, whether said list contains any part or all of such prizes. (/) Where a station or network is broadcasting a sustaining pro¬ gram utilizing the services of any band or orchestra, it shall be deemed an unfair practice under this Code to make any commercial announcement advertising any commodity either before, during or after the program the effect of which is to create falsely the im¬ pression that the music is furnished or paid for by any persons or firm other than the actual employer of such band or orchestra. (g) It shall be considered an unfair trade practice under this Code for any station or network to destroy fair competition among bands or orchestras by causing booking offices, artist bureaus or agents to demand that any hotel, night club, restaurant or similar establishment employ any specific band or orchestra. ( h ) It shall be considered an unfair trade practice under this Code for any broadcaster to broadcast without being duly author¬ ized by the United States Government. (?) No broadcaster or network shall use any subterfuge to frus¬ trate the spiirt and intent of this Code, and the violation of any of the provisions of this Article VII of this Code shall be deemed an unfair trade practice. ARTICLE VIII Modification 1. The President of the United States may, from time to time, cancel or modify any order, approval, license, rule or regulation issued under Title I of the Act. 2. Nothing in this Code, however, shall be construed as authoriz¬ ing or consenting to the imposition of any requirement which is in conflict with the Radio Act of 1927, as amended, or the rules and regulations promulgated thereunder. ARTICLE IX Monopolies, etc. No provision of this Code shall be so applied as to permit monopolies or monopolistic practices, or to eliminate, oppress or discriminate against small enterprises. ARTICLE X Effective Date This Code shall become effective on the second Monday after its approval by the President. • Page 242 ■