INVESTIGATION OF JAMES C. PETRILLO, THE AMERICAN

FEDERATION OF MUSICIANS, ET AL.

The subcommittee met at 10 a. m., the Honorable Carroll D. Kearns (chairman of the subcommittee) presiding; Hon. O. C. Fisher, of Texas, substituting for the Honorable Graham A. Barden, who was absent from the city.

Present also: Fred A. Hartley, Jr., chairman of the Committee on Education and Labor; Irving G. McCann, general counsel to the committee; and Joseph A. Padway, counsel for the American Federation of Musicians.

Chairman HARTLEY. The committee will come to order.

Before turning the gavel over to the chairman of the subcommittee making this investigation, as chairman of the House Committee on Education and Labor, I wish to make a brief statement.

Earlier this year, during the months of February and March, the full Committee on Education and Labor conducted hearings on proposed labor legislation.

During the course of these hearings there were certain allegations and charges of certain practices in certain unions which, if true, were contrary not only to the best interest of the members of those unions, but definitely contrary to the public interest.

Certain of those charges concerned Mr. James C. Petrillo and the American Federation of Musicians.

At that time I extended an invitation to Mr. Petrillo to testify before the full committee. He felt it best at that time not to testify, and I excused.

However, because of charges that were made against his union and its practices, and other charges, as I mentioned above, the powers of this committee were extended by House Resolution 111, and I, as chairman, was authorized to appoint certain subcommittees to make studies and investigations of the allegations that had been made. This committee is the first to proceed under that resolution.

Mr. Petrillo will be given a full and ample opportunity to answer questions and to give his side of this controversy.

The purpose of the investigation is to report to Congress, should the allegations prove to be true, and make whatever recommendations the subcommittee feels to be in order, and not only make recommendations to Congress, but, if necessary, to the Attorney General.

I will therefore step aside now and turn the chair over to Mr. Carroll Kearns, the chairman of the subcommittee.

Mr. KEARNS. Is Mr. James C. Petrillo in the room? If so, please come forward.

Mr. Petrillo, will you stand and take the oath?

(James C. Petrillo was duly sworn.)

Mr. KEARNS. Mr. Petrillo, in having you come before this committee, I want you to understand fully the purpose of this hearing.

You have heard the statement made by the Honorable Fred A. Hartley, Jr., chairman of the House Committee on Education and Labor, that this hearing was proposed because of the complaints from all over the United States about the practices engaged in by you as president of the American Federation of Musicians.

I want to assure you as chairman of this subcommittee that my colleagues and I are here to have you answer questions pertaining to these so-called inequities or unfair practices covered by the complaints we have received from all sections of the United States prior to and during the first 212 months of our investigation.

Further, many of those making the complaints are sitting in this hall this morning. They will testify after we have questioned you pertaining to these alleged unfair practices by you and your federation. It seems to me that it is only fair to you, Mr. Petrillo, and to the American Federation of Musicians, that I should review briefly some of the issues which will be considered by the committee at this hearing. But, first, let me say that, while we are mindful of the fact that many of your past and present activities have been outlawed through the enactment of Public Law 101 of the Eightieth Congress and by the recent decision of the Supreme Court in the case of United States v. Petrillo, nevertheless, we shall receive evidence as to what has been done and is being done by you in order that the Congress may determine whether any additional legislation is necessary. So when we ask questions as to your past and present practices we are fully conscious that you may discontinue some of these practices in their present form. On the other hand, we recognize the fact that you may attempt to continue other practices because of the deficiencies in existing laws, and it is for that reason that we shall attempt to review existing unfair activities and practices indulged in by your federation.

It has been developed during our investigation that the American Federation of Musicians is so unique in its organization and operations that there is some doubt whether or not it is a regular labor union entitled to the protection and exemptions of our Federal statutes, such as the Norris-LaGuardia Act. From the complaints filed with this committee and the investigation which it has conducted, it appears that the American Federation of Musicians is distinctive from other labor unions in the following respects:

1. That the vast majority of its membership is composed of people who do not earn their entire livelihood as musicians. It has been estimated that not over 10 percent of your membership are employed exclusively as musicians.

2. In the average union, payments are made to its members for services actually rendered either on a piecework, hourly, daily, weekly, or monthly basis. The investigation of our committee indicates that your federation, by means of a strike, has forced the recording industry to pay approximately $2,000,000 as tribute to all of the members of

your organization in order to secure the continued services of those members of your federation who were their employees and with whom they had no dispute over wages, hours, or working conditions.

3. That your federation, through the threat of strikes and boycotts, has required theater operators throughout the United States to employ stand-by orchestras for many movies, shows, or performances in which they did not need, want, or use these orchestras.

4. That your federation has dictated to the licensed broadcasters of the United States who are amenable to Federal laws and regulations the number of musicians which they should employ, the amount of money which they should spend for music, and has, in some instances, required them to employ musicians to render services which did not necessitate musical knowledge or talent to perform.

5. That you and the board of the American Federation of Musicians are engaged in a concerted effort to hold back the technological improvements in radio and in television. That you have denied the use of live music through the networks to FM broadcasting stations. That you have forced the movie industry to sign contracts denying the use of any sound track made by members of your federation to television.

6. That your federation has interfered with and restricted the inalienable right of the people of the United States to enjoy freedom of religion and education. Numerous complaints have been made to the effect that, by virtue of the monopoly which your federation exercises over the radio and recording companies of the United States, amateur musicians are denied the right to perform; churches must pay stand-by fees for organists; orchestras, bands, and choruses in many schools have been denied the right to broadcast, the service bands of the United States are denied the free right to make records; and the entire population of the United States is denied the right to enjoy the kind of music which they may desire to hear.

7. That your federation is a monopoly which exercises the power of licensing businesses, of licensing agents to do business with your members, which undertakes to circumvent the right of individuals to litigate in our courts, and autocratically determines the amount or amounts of money which must be paid by nonunion members to members of your organization.

8. That by the constitution and bylaws of your organization, James Caesar Petrillo is given dictatorial powers over the lives and work of the members of the American Federation of Musicians; and that under the constitution, the American Federation of Musicians assumes such power over its membership as to destroy the right of free speech and the economic security of its members.

I want you to understand that as a Congressman and chairman of this subcommittee-and also a member of your organization-that I am fully cognizant of the good you have done for the musicians. This committee did not bring you here to embarrass you, but rather for the sole purpose of answering questions pertaining to these issues and complaints. If charges and complaints which are brought against you and the American Federation of Musicians are false and unfounded, I can assure you that you will be exonerated. However, if these charges are proved to be bona fide and you cannot explain why they are justifiable, then this committee definitely will make recom

mendations to the full Committee on Education and Labor that legislation be passed to correct such practices.

At this time will the counsel please establish the identity of the witness?

Mr. PADWAY. Mr. Chairman, may we have copies of that statement you have just read?

Mr. KEARNS. Yes, sir; they are right here at the desk.

Mr. PADWAY. Incidentally, my name is Joseph A. Padway; I am counsel for Mr. Petrillo, and for the American Federation of Musicians.

There is one other thing I would like to remark on, because it will bear upon the investigation you are going to make.

In his statement Mr. Hartley said-and I think he meant the suggestion or recommendation made by Congress-that if necessary for enactment of laws to cope with anything you may find to be out of line

Mr. MCCANN (interposing). Mr. Chairman, pardon me just a mo

ment.

I think this is an appropriate time to ask Mr. Fadway certain questions before he proceeds to make a statement.

Mr. KEARNS. We will let Mr. Padway proceed.

Mr. PADWAY. What I had in mind was this: Mr. Hartley also stated they might also make recommendations, or turn the matter over to the Attorney General.

If that is merely for review, that is one thing. If it is intended by way of some sort of prosecution, the witness will have to be able to know that, so that he will be able to stand on his constitutional rights.

I would say this: If that is the case, in view of that statement, there may be certain matters you may inquire into that I might object to because of the constitutional objection this witness or any witness would be entitled to, in a hearing which tends to be the basis of a prosecution.

Mr. KEARNS. Mr. Padway, I want to say that you may object at any time we may seem to be incriminating the witness, or invading his constitutional rights.

TESTIMONY OF JAMES C. PETRILLO, PRESIDENT, AMERICAN FEDERATION OF MUSICIANS; PRESIDENT, CHICAGO FEDERATION OF MUSICIANS

Mr. MCCANN. Please state your name and residence address.

Mr. PETRILLO. James Caesar Fetrillo, 1039 North Boston Boulevard, Chicago, Ill.

Mr. MCCANN. Do you have any other residence address?

Mr. PETRILLO. When I am in New York I live at the WaldorfAstoria Hotel.

Mr. MCCANN. Are you a citizen of the United States?

Mr. PETRILLO. Yes, sir.

Mr. MCCANN. Where were you born?

Mr. PETRILLO. Chicago.

Mr. MCCANN. Where were you educated?

Mr. PETRILLO. Chicago.

Mr. MCCANN. Where did you receive your musical training?

Mr. FETRILLO. Hull House Band and Chicago Daily News Band.

Mr. MCCANN. What official position do you occupy with the American Federation of Musicians?

Mr. PETRILLO. President of the American Federation of Musicians. Mr. MCCANN. What official position do you occupy with the Chicago local of the American Federation of Musicians?

Mr. PETRILLO. President of the Chicago Federation of Musicians. Mr. MCCANN. Do you have with you a copy of the constitution and bylaws of the American Federation of Musicians?

Mr. PETRILLO. Yes.

Mr: MCCANN. Is the 1946 issue the last edition of your constitution and bylaws?

Mr. FETRILLO. I think that is up to date.

Mr. MCCANN. I will ask that this be marked as a reference exhibit. (The constitution and bylaws referred to above were marked "Exhibit No. 6" and filed with the committee.)

Mr. MCCANN. Have any changes been made in that constitution and bylaws since the issuance of the 1946 volume that I have had marked as a reference exhibit?

Mr. PETRILLO. There might have been a few changes made at the last convention in June, but very minor.

Mr. MCCANN. Will you see that they are furnished to this committee?

Mr. PETRILLO. Yes.

Mr. MCCANN. Will you indicate what section of the constitution and bylaws of the American Federation of Musicians enumerate your powers and authority as president?

Mr. PETRILLO. Section 1, article 1.

Mr. MCCANN. Is it not a fact that under the constitution and bylaws of the federation you are given absolute power to amend or set aside any and all provisions of the constitution except those dealing with finances?

Mr. PETRILLO. Correct.

Mr. MCCANN. What is your salary as president of the American Federation of Musicians?

Mr. PETRILLO. $20,000 a year.

Mr. MCCANN. What is your salary as president of the Chicago local of the American Federation of Musicians?

Mr. PETRILLO. $26,000 a year.

Mr. MCCANN. What expense account is allowed you by the American Federation of Musicians?

Mr. PETRILLO. A $3,000 contingent fund.

Mr. MCCANN. Do you have to account for this expense fund?

Mr. PETRILLO. No.

Mr. MCCANN. What expense account is allowed you by the Chicago local of the American Federation of Musicians?

Mr. PETRILLO. A $5,000 contingent fund.

Mr. MCCANN. Do you have to account for that fund?

Mr. PETRILLO. No.

Mr. MCCANN. Does the American Federation of Musicians furnish you with an automobile?

Mr. PETRILLO. Yes.

Mr. MCCANN. Is it an armored or bulletproof car?