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Mr. KEARNS. We will consider it in view of your objection.

(The complaint above referred to was filed for the information of the committee.)

Mr. MCCANN. I would like to ask you whether you were present in a conference in January of 1947 for the purpose of arranging contracts with respect to the broadcasting stations of the country_on behalf of the locals and the American Federation of Musicians. Did you attend a 2-day conference in New York on that subject? Mr. PETRILLO. Now, you say "locals."

Mr. MCCANN. On behalf of the American Federation of Musicians? Mr. PETRILLO. Are you referring to Los Angeles, New York, and Chicago, when we had meetings with the chain broadcasting companies?

Mr. MCCANN. Exactly, I assume. There were four locals, I understand, represented.

Mr. PETRILLO. Three locals.

Mr. MCCANN. New York, Chicago, and Los Angeles?

Mr. PETRILLO. Yes.

Mr. MCCANN. And where was that meeting held?

Mr. PETRILLO. My office in New York City.

Mr. MCCANN. What days was that meeting held?

Mr. PETRILLO. I cannot give you the day, but it was held sometime in the first half of January 1947.

Mr. MCCANN. At that time, were you asked any question about the rule which you had established concerning the requirement that there should be double pay for FM broadcasts over AM stations?

Mr. PETRILLO. Yes.

Mr. MCCANN. Was that discussed rather fully at this conference? Mr. PETRILLO. Yes.

Mr. MCCANN. Were you urged at that time by the presidents of the four networks to modify your rule?

Mr. PETRILLO. No, they asked me to think it over; we would meet again sometime.

Mr. MCCANN. They did not talk to you and ask you at that time to allow them to broadcast their regular network programs over FM as well as AM?

Mr. PETRILLO. They asked me to reconsider the former action.

Mr. MCCANN. Yes, and did you at that time make any statement with respect to the terms and conditions of the contract which should be entered into?

Mr. PETRILLO. No.

Mr. MCCANN. Is it not a fact at the Detroit convention recently you made a statement in your opening speech there or in your address as president that you were contemplating the first of the year when you enter into contracts with the chains the possibility of the Supreme Court ruling against you in the Chicago case and that you had limited your contracts therefore to 1 year to prepare for that?

Mr. PETRILLO. We had previously, with the chain companies, contracted for 3-year terms.

Mr. MCCANN. Yes, and you did make that speech in Detroit that you planned to meet that situation?

Mr. PETRILLO. I made the speech in St. Petersburg last June. I believe I followed up in the convention last July.

Mr. MCCANN. It is so reported in Broadcasting magazine?

Mr. PETRILLO. That is correct.

Mr. MCCANN. At the time you were discussing this problem in New York with these officials, would you mind telling me who the officers of the national chains were at that meeting?

Mr. PETRILLO. Niles Trammell was there, the president of NBC; Mark Woods of ABC; Kobac of Mutual; and Stanton of Columbia; and they had some assistants with them.

Mr. MCCANN. Now, did they have any discussion with you at all with respect to when and from whom they might receive some relief on FM stations?

Mr. PETRILLO. No; just as I told you before, they asked me to reconsider my action and we would meet some future date to discuss the FM situation.

Mr. MCCANN. Is it true that it was decided at that time that all terms and conditions of the contract should be extended as if for an additional year from February 1, 1947, and that negotiations should be held locally in each one of the four cities concerning increase in minimum scales? Is that true?

Mr. PETRILLO. That is true.

Mr. McCANN. And that you requested a vacation with pay for staff musicians employed in all those cities?

Mr. PETRILLO. Only for Chicago.

Mr. MCCANN. Only for Chicago. Were several attempts made during the course of these discussions with you which took place in two sessions on two successive days to reach some answer satisfactory to the broadcasters on your prohibition against duplication of AM programing over FM facilities?

Mr. PETRILLO. Only what I stated before.

Mr. MCCANN. Did you make it clear that you were reluctant to make any decision on the problem at that time?

Mr. PETRILLO. No.

Mr. MCCANN. Did you say that the matter was one which could in no way be involved in the local contract negotiations?

Mr. PETRILLO. That is right.

Mr. MCCANN. Did you further say that the authority to decide it had first been taken from the locals by the executive board of American Federation of Musicians and thereafter from the executive board by yourself?

Mr. PETRILLO. That is right.

Mr. MCCANN. You did say that?

Mr. PETRILLO. Yes.

Mr. MCCANN. And you told them at that time that it was impossible for them in their local negotiations then to consider FM contracts because that power had been taken away from the locals by the executive board and then had been taken away from the executive board by you?

Mr. PETRILLO. It wasn't taken away from the board.

Mr. MCCANN. You just said it was.

Mr. PETRILLO. The board gave it to me.

Mr. MCCANN. You just stated that it had first been taken away from the locals by the executive board of American Federation of Musicians, and that afterwards it was taken away from the executive board by yourself.

Mr. PETRILLO. Not taken. The executive board passed the motion to leave the entire FM question in the hands of the president.

Mr. MCCANN. You had the power?

Mr. PETRILLO. I had the power.

Mr. MCCANN. That was a formal resolution by the board?

Mr. PETRILLO. It is a matter of record.

Mr. MCCANN. Will you set it down for the record, and we will mark it as an exhibit the date and time of that resolution by the board? Will you do that?

Mr. PETRILLO. Sure,

Mr. MCCANN. Do you know when that was?

Mr. PETRILLO. A couple years ago.

Mr. MCCANN. A couple years ago that you received the power from the board to have sole control over FM stations?

Mr. PETRILLO. Yes.

Mr. MCCANN. Now, at that time, is it not a fact, Mr. Petrillo, that you agreed that you would shortly hold a conference with the broadcasting stations to decide on what terms FM might be used by them? Mr. PETRILLO. You mean after the board gave me the power to settle FM?

Mr. MCCANN. I mean after the conference in January 1947.

Mr. PETRILLO. Only what I told you before, we would take the matter up after the contracts were signed.

Mr. MCCANN. They were signed in January?

Mr. PETRILLO. Yes. .

Mr. MCCANN. Have you ever taken it up with them?

Mr. PETRILLO. They haven't taken it up with me.

Mr. MCCANN. Has there been any effort at all to take the matter

up with you?

Mr. PETRILLO. No.

Mr. MCCANN. No one has made any effort to take the matter up with you?

Mr. PETRILLO. Some people would call up about FM, but not the chain companies.

Mr. MCCANN. The chain companies have not contacted you at all? Mr. PETRILLO. No.

Mr. MCCANN. And you have not contacted them?

Mr. PETRILLO. No.

Mr. MCCANN. But you did say at this conference that you would personally sit down and agree to discuss the matter with the network representatives in the near future?

Mr. PETRILLO. That is right.

Mr. MCCANN. Now then, with respect to television, in addition to the contracts which you identified that you had made with the major companies yesterday, you also entered into a contract, did you not, with the Donald Nelson group of independent operators?

Mr. PETRILLO. Yes.

Mr. MCCANN. Is it not a fact that the contract which you entered into with the movies there was identical insofar as the paragraph with respect to the use of movies by television is in the contracts entered into with the major movie producers?

Mr. PETRILLO. Right.

Mr. MCCANN. Now, have you entered into a contract with the smaller producers, or with the group represented by Mr. Chadwick?

Mr. PETRILLO. Yes.

Mr. MCCANN. In fact, is it not a fact that a contract with all of the movie producers of the country that prohibit them from contributing any musical score to television?

Mr. PETRILLO. That is right.

Mr. McCANN. I hand you a book and ask you if that is the form of contract which you have entered into with the movie industry? Mr. PETRILLO. It looks like the contract.

Mr. MCCANN. Mr. Chairman, I ask that this be received in evidence and that it be reproduced in full.

Mr. KEARNS. Without objection that will be done. (The contract referred to is as follows:)

AMERICAN FEDERATION OF MUSICIANS-WAGE SCALES, HOURS OF EMPLOYMENT, WORKING CONDITIONS, APPLYING TO MOTION-PICTURE WORK, EFFECTIVE APRIL 1, 1946

BASIC AGREEMENT FOR PRODUCERS ENGAGING NOT LESS THAN 20 MUSICIANS ON A PER ANNUM BASIS

THIS AGREEMENT, executed at New York City, N. Y., as of this 1st day of April 1946, by and between (hereinafter referred to as the "Producer" or "Studio"), and the "AMERICAN FEDERATION OF MUSICIANS" (hereinafter referred to as the "Federation"),

WITNESSETH:

1. Scope of agreement.—This agreement shall be applicable to the classifications of employees listed in the "Wage Scales, Hours of Employment, and Working Conditions" attached hereto, also, all conductors, featured instrumental musicians and orchestras, employed by the Producer in the State of California or elsewhere in the United States and Canada and whose services are rendered in connection with the production of motion pictures (excluding news reels), under the supervision of the Producer's executives managing its Studios in Los Angeles County, California, all of whom will herein be collectively referred to as "Musicians."

2. Recognition.-The Producer recognizes the Federation as the exclusive collective-bargaining representative of all Musicians employed by the Producer. The Federation makes this agreement on behalf of the Musicians employed by the Producer, all of whom are members of the Federation in good standing. 3. Shop requirements.-The Producer will employ only Musicians who are members in good standing or have work permits from the Federation.

The Federation promises and agrees to make available competent persons to perform the work and render services required by the Producer under this provisions of this agreement.

4. Wage scales, hours of employment, and working conditions.-Wage Scales, Hours of Employment, and Working Conditions for Musicians shall be as set forth in the "Wage Scales, Hours of Employment, and Working Conditions" attached hereto, and shall be effective as of April 1, 1946.

5. Better conditions.-The rates of pay now being received by any Musicians subject to the terms of this agreement shall not be decreased by reason of the execution of this agreement. Nothing in this agreement shall prevent any individual Musician from negotiating and obtaining from the Producer better conditions and terms of employment than those herein provided.

6. Federation representative.-The duly authorized business representative of the Federation shall be furnished a pass to the Studio. He shall be permitted to visit during working hours any portion of the Studio necessary for the proper conduct of the business of the Federation.

7. Agreement to remain unchanged. The basic Wage Scales, Hours of Employment, and Working Conditions hereto attached shall not be changed during the life of this agreement.

It is agreed that all the laws, rules, and regulations of the American Federation of Musicians now extant are a part of this agreement. As the Musicians engaged under the terms of this agreement are members of the American Federation of Musicians nothing in this agreement shall ever be construed as to interfere

with any obligation which such Musicians owe to the American Federation of Musicians as members thereof under such existing laws, rules, and regulations of the American Federation of Musicians.

8. Contract orchestra.-The Producer agrees to enter into exclusive personal service contracts with not less than recording Musicians on April 1, 1946, on terms not less favorable than those provided in the attached "Wage Scales, Hours of Employment, and Working Conditions."

Personal service contracts as referred to above shall cover two periods, each independent of the other, to wit:

(a) First term-April 1, 1946, up to and including August 31, 1947;

(b) Second term-September 1, 1947, up to and including August 31, 1948. Recording Musicians employed for the first term shall be guaranteed $9,842.00. Recording Musicians employed for the second term shall receive a guarantee of $6,916.00.

Recording Musicians employed as per minimum guarantees above may be utilized only on productions in which the Producer has a substantial financial interest. If the Producer, directly or indirectly, furnishes 25% or more of the equity financing of a production, it shall be deemed to have a substantial interest therein.

Copy of exclusive personal service contract mentioned above is attached hereto. 9. Contract approval.-The Producer agrees that all individual contracts covering services of members of the Federation performing services within the scope of this agreement, will be submitted for approval to the American Federation of Musicians, which approval may be made by the Federation Studio Representative. 10. Orchestra managers.-Orchestra managers are to be selected by the Producer. The Federation, however, reserves the right to approve or disapprove the selection, which approval shall not be arbitrarily withheld. Both Producer and the Federation reserve the right to remove the orchestra manager at any time for cause.

11. Sound track regulations.-A. The Producer agrees that all music sound track already recorded, or which will be recorded prior to the expiration of this agreement, will not be used at any time for any purpose whatsoever except to accompany the picture for which the music sound track was originally prepared, with the following exceptions:

(1) Music recorded for any picture may be used for any trailers advertising the same picture.

(2) Music sound track previously recorded may be used to "stock" subsequent pictures for "sneak previews."

(3) Radio transcriptions to exploit the picture, of music recorded for that picture, may be made by payment to the recording Musicians of the established transcription or record rate, such payment not to apply to the Musicians' minimum guarantees. Such transcriptions must be registered with the Studio Representative.

(4) Acetate copies of prescore recordings may be made for necessary rehearsing by artists, directors and/or for the edification of company executives only.

(5) If any prescored musical numbers are, for any reason, deleted from the picture for which they were designated and such deletion is done before the picture is released, the Producer shall have the right to re-register such work with the Studio Representative for a subsequent production. The intent of this being that the Producer shall have the right to use all prescored numbers in one released production.

B. The Producer further agrees to register identification of picture and music sound track with the Studio Representative.

C. It is agreed that members of the Federation shall not be required or permitted to record music sound track for general usage or for any purpose whatsoever except as provided herein.

D. It is further agreed that all music sound track already recorded, commonly referred to as "library music sound track," will not be disposed of, sold, leased, or used for any picture or purpose except to accompany revival of the picture for which recordings were originally made.

E. It is agreed that members of the Federation will not be required or permitted to use music sound track for any purpose in violation of the terms herein provided.

F. The Producer is not restricted from continuing the established industry practice of exchanging so-called "stock shots."

G. The use of library music sound track for short subjects is prohibited.

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