NAB reports (Jan-Dec 1946)

1 760 N STREET, N. W. WASHINGTON 6, D. C. Vol. 1 4, No. 5, February 4, 1946 Music LEA BILL GOES TO HOUSE FLOOR The amended Lea Bill (H. R. 5117) which was recently reported out of the House Interstate and Foreign Com¬ merce Committee (see NAB Reports, p. 53) has had its way cleared for House consideration by the Rules Com¬ mittee which gave the bill right of way to the floor after hearing the Interstate and Foreign Commerce Committee’s report. No date has been set for House consideration. The report on the bill is herewith reprinted in full : REPORT [To accompany H. R. 5117] The Committee on Interstate and Foreign Commerce, to whom was referred the bill (H. R. 5117) to amend title V of the Communications Act of 1934 so as to prohibit certain coercive practices affecting radio broadcasting, having considered the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. The amendment is as follows: Page 4, in lines 15 to 18, inclusive, strike out — shall be guilty of a felony and, upon conviction thereof, shall be punished by imprisonment for not more than two years or by a fine of not more than $5,000 — and insert in lieu thereof — shall, upon conviction thereof, be punished by imprison¬ ment for not more than one year or by a fine of not more than $1,000. General Statement For some years the radio broadcasters of the Nation have been harassed by ever-increasing extortionate and racketeering demands to which they have been forced to yield by coercive methods. The tributes thus exacted are now measured by millions of dollars. These exactions have not been in compensation for serv¬ ices performed for the broadcasters or in settlement of any obligations due from them. They have not been made for the enforcement of any rights due those who demanded them. The object of this proposed legislation is to put an end to these exactions for the protection of the broadcasting industry and for the integrity of the Nation. Evils at Which Directed Broadcasting has become one of the great industries of our time. It is now one of the chief means of communica¬ tion of our Nation. It is one of our greatest implements for free speech. It promptly carries news to the remotest sections of the country. It is a forum for the discussion of our political, economic, and social problems. It is a source of information, education, entertainment, music, culture, and a vehicle for the messages of all religions, utilized by practically every home in the Nation. In recent years the broadcasting industry has been sub¬ jected to extortionate demands enforced by coercive methods which increasingly threaten to restrict and handi¬ cap it in performing its rightful functions to the Nation. Those making these demands, empowered by organized groups, not only have exacted tributes from the broad¬ casters but have assumed and exerted the power to say what shall and shall not be communicated over the radio. True, they have limited their dominations and demands to purposes which serve their particular groups, but never¬ theless they have set a pattern for a like power of private control exerted for mercenary purposes over other phases of the broadcasting industry of the Nation. The same power exercised for other purposes, if permitted, might make the right of free speech only a name and establish censorship of broadcasting for private gain. Those who make these demands subordinate the rights of the people of the Nation to an untrammeled broadcasting service to their own mercenary purposes. They in effect say to the broadcasters, and say to the makers of record¬ ings. “You must pay this tribute or we will not permit you to give this service to the Nation.” An effective power behind the threat is the boycott and strike. American Federation of Musicians The make-up and operation of the American Federation of Musicians scarcely justifies its classification as a labor union. Applicants for membership are received without conforming to any qualification of a musician. Only about one-third of them make their living primarily by musical service. The voting privileges of members are so allocated as to permit a minority domination through grossly un¬ equal allotment of voting power. In most cases demands of the character dealt with by this proposed legislation have been made on behalf of the American Federation of Musicians by James C. Petrillo, its president. The bylaws of the American Federation of Musicians empower its president to promulgate and issue executive orders — which shall be conclusive and binding upon all members and/or locals; any such order may by its terms (a) en¬ force the constitution, bylaws, standing resolutions or other laws, resolutions or rules of the federation; or (b) may annul and set aside same or any portion thereof, except such which treat with the finances of the organization, and substitute therefor other and different provisions of his own making. The federation thus composed is so organized that its membership has little control over its management or policy. Coercive Practices The local broadcasters of the Nation are greatly depend¬ ent on the networks for rounding out their programs. This situation has augmented the coercive power of the Federa¬ tion of Musicians in forcing compliance with its demands. Through coercive efforts, including boycotts and strikes and threats of boycotts and strikes against broadcasters, the networks and those who furnish materials for broad ( Continued on next page ) FEBRUARY 4, 1946-71