While your subcommittee does not condone the conduct of the officers and members of Los Angeles local 47 we do recommend that this investigation be closed. We propose this action because, while your subcommittee was holding its hearings in Los Angeles and had received in evidence testimony substantiating Mr. Carroll's charges, the officers of local 47 agreed to meet with Mr. Carroll and reconsider the terms which they had forced upon him. In the conferences which followed the officers of local 47 evidenced a disposition to make amends to Mr. Carroll and to rescind the harsh and dictatorial terms which they had imposed upon the Earl Carroll Theater-Restaurant after his return to Hollywood following his testimony in Washington on March 15, 1947. Thereafter local 47 executed a 3-year contract with Earl Carroll, restoring to him the "right to engage only the number" of musicians "he deems necessary" at wage rates previously established through collective bargaining. PETRILLO'S EXPLANATION AND DEFENSE In justification of his own conduct and of the acts and policies of the American Federation of Musicians, James Caesar Petrillo, testifying under oath before our committee, said in substance: You wonder sometimes why we get disturbed. At the present time we have a healthy employment condition. In 1 year 50 percent of our men will be on the streets. Employment conditions are getting bad. Restaurants, places of amusement, and some radio broadcasters are laying off musicians. Prior to the introduction of movietone and vitaphone we had 22,000 men in the theaters. Overnight we lost 18,000 of them Five hundred men in Hollywood are making pictures for the theaters of the world-500 men, where formerly we had 22,000 men working in the theaters. In other words, our union makes the instrument that destroys it. When we consented to the making of recordings we never had in mind that they were going to go in radio stations, juke boxes, hotels, and other places of amusement and that people would even get married by the music of a juke box. All of this causes unemployment for professional musicians. The money received in royalties from recording companies is being used by the union to give employment to members of the American Federation of Musicians. We have either got to protect the American Federation of Musicians against canned music or we are going out of business. And we don't want to go out of business if we can help it. I wish we could prove how many radio stations in this country make recordings of music that comes over the air right in their own studios and then use the same recordings on their station and never pay a nickel for the recording. That is the reason we are contemplating adopting the policy that all the men who handle records in the stations must be members of the musicians' union. We have an agreement with the chain companies that the men who put the records on the machine must be members of the federation. I want to be frank with you; that is why I am telling you these things. I have nothing to hide; I want you to know all of the facts in this case. I want you to know what we are thinking. It took us 25 years to build up a $23,000,000 business in the radio industry. We say to the radio companies: "Gentlemen, if we make television go along with you, what are the possibilities of our losing our $23,000,000 a year with the business in radio? Will we lose it? Will we lose half of it? * * * We had a very sad experience with the movietone and vitaphone, and for that reason we want to be very cautious; and anytime you are ready to sit down and make a deal, we will." In justice to Mr. Petrillo, it must be said that technological improvements did cause many musicians to lose their jobs. It is equally true that the ultimate result of technological improvements has been, and will be, to create more jobs for musicians than previously existed. There is no question that Mr. Petrillo has the backing of most of the members of the American Federation of Musicians in his efforts to 66874-47-37 increase employment and to protect the jobs of those who belong to his union. The dictatorial power granted by the constitution of the American Federation of Musicians to its president was in effect prior to the time when Mr. Petrillo was elected to this office. CONFERENCES WITH MR. PETRILLO After the appearance of Mr. Petrillo before the subcommittee on July 7 and 8, Mr. Kearns endeavored to secure a settlement of many problems through personal negotiations with Mr. Petrillo, the school administrators, the music educators, the representatives of the armed services, the presidents and counsel of the networks, and officers of the FM broadcasters. It was his thought that by this means it might be possible to eliminate some of the monopolistic practices of the American Federation of Musicians without the delay incident to the enactment of legislation by the Congress. In undertaking this task he was also motivated by a sincere desire to protect the legitimate right of professional musicians to earn a living in their vocation, by eliminating the unfair competition of juveniles, amateurs, and service bands. To effectuate these ends Mr. Kearns met with Mr. Petrillo and band leaders of the armed services at 2 p. m. on July 22, 1947, in the committee's hearing room at Washington, D. C.; at 4 p. m. the same day he and Mr. Petrillo met with the School Administrators Association of America and the Music Educators National Conference. At these meetings Mr. Kearns endeavored to secure for the service bands the right to make recordings for educational purposes for use in schools, colleges, and music library collections and to secure an agreement on a code of ethics which would protect the commercial rights of the members of the American Federation of Musicians and at the same time insure the freedom of juvenile and amateur musicians to participate without compensation over the radio and at public functions when they were not displacing professional musicians nor depriving them of a livelihood. Subsequently Mr. Kearns met with Mr. Petrillo in Chicago on July 30, 1947, and discussed with him the current problems pertaining to the future of AM broadcasting, recordings, television, and FM broadcasting. On October 1, 1947, Mr. Kearns met with the officers and executive board of the FM broadcasters at Mr. Petrillo's office. At this time they discussed the possibility of duplication of AM programs over FM. Mr. Petrillo would not agree thereto but did on October 2 authorize live music to be broadcast over the 34 FM network stations known as the Continental Network. The same evening Mr. Kearns met with the presidents of the four major broadcasting companies, their vice presidents, and attorneys, to discuss the problems of the AM broadcasters. Following this meeting Mr. Kearns met for 2 hours with Mr. Petrillo in an effort to prevail upon him to permit the networks and all stations throughout the country to duplicate AM live-music programs over FM. Mr. Petrillo agreed to give the matter his consideration. On October 17 he informed Mr. Kearns he would take the matter up with his executive board the following morning when they convened in Chicago. On October 19 Mr. Petrillo announced that he had decided to ban recordings after the present contract with the recording companies expired on December 31, 1947. On November 6, 1947, Mr. Trammell, of the National Broadcasting Co., and Mr. Woods, of the American Broadcasting Co., met with Mr. Petrillo in an effort to secure an amicable settlement of the various problems confronting the broadcasters and the American Federation of Musicians. They reported to Mr. Kearns that Mr. Petrillo expressed a desire at that time to make a contract with them- for the whole works, in which he included the renewals of the present AM contract, containing the duplication of AM programs over FM and also television. Subsequently Mr. Petrillo advised these gentlemen that he could do nothing further until he met with his executive board in Chicago on December 8 and 9, 1947, at which time he invited the presidents of the networks to meet with his board in Chicago. Mr. Kearns had planned to meet with the presidents of the networks and their counsel and with the representatives of certain recording companies during the week of December 8 but decided to postpone these conferences until after the Chicago meeting of the executive board of the American Federation of Musicians. This, in brief, is a summary of the efforts made by your subcommittee to secure a solution of these and other problems by negotiations. Your subcommittee must admit that the results have been far from satisfactory. CONCESSIONS BY MR. PETRILLO James Caesar Petrillo, president of the American Federation of Musicians, has, since July 8, 1947, when he appeared as a witness before the Kearns subcommittee, made the following concessions: 1. He has executed an agreement or code of ethics with the American Association of School Administration of the United States and the Music Educators National Conference of the United States to permit high-school bands, orchestras, and ensembles to broadcast over network or privately owned stations, either on AM or FM frequency. A copy of this agreement is on file with the committee 2. He has entered into an agreement with the armed services, namely, United States Army, United States Navy, United States Marine Corps, and United States Air Forces, to permit said service bands representing the armed forces to make recordings to be used strictly for educational purposes and in the homes of students or children participating as organized groups in authorized schools or colleges. These recordings will be available for colleges, public schools, parochial schools, and library collections throughout the Nation. A copy of this agreement is on file with the committee. 3. Has permitted live music to be broadcast over frequency modulation stations, which was previously prohibited, but he continues to refuse or prevents duplication of live music programs over AM and FM stations. He has permitted live music to be broadcast from designated places, in a few limited instances, over the FM network known as the Continental Network, which includes 35 stations Negotiations for the broadcast over this network may be made at the place of origin of the program, and the prevailing wage scale at that place is recognized. 4. He has restored the licenses of two bookers who filed complaints with this committee that they had been deprived of the right to work and earn a livelihood through the arbitrary cancellation of their licenses by Mr. Petrillo. FINDINGS OF FACT 1. The American Federation of Musicians, affiliated with the American Federation of Labor, is a small union having a total membership in July 1947 of 216,000. James Caesar Petrillo is its president. 2. Approximately 32,400 of the members of this union earn their livelihood exclusively as musicians. Probably twice that number earn part of their livelihood in other vocations. About 86,400 members of this union "have either dropped their instruments because there is no work for them" or have "quit the business" because of other interests. Many of them have kept their membership cards "for sentimental reasons." 3. The constitution of the American Federation of Musicians (p. 162, 1946) shows that this union has no professional standards.1 Article XV, section 1, provides: SECTION 1. Performers on musical instruments of any kind who render musical services for pay are classed as professional musicians and are eligible for membership, subject to the laws of and jurisdiction of the A. F. of M. (This shall include all instrumental performers engaged as cabaret entertainers or in similar occupations, when such entertainers displace an orchestra or other combination of federation members.) In other words, any person who is 16 years of age (art. IX, sec. 15, p. 57) that can toot a horn or play any other musical instrument by ear or note "for pay" is qualified for full union membership in the American Federation of Musicians. How many high school, college, and hillbilly musicians hold membership in this union we do not know. 4. There are several million persons in the United States who are eligible for membership in this union, but none of them can sing or play for money over a radio network or make a recording unless they first join the American Federation of Musicians. 5. The American Federation of Musicians enjoys "a virtual monopoly over the making of music and dissemination of it in this country." In replying to a question by Representative Fisher containing the words above quoted Mr. Petrillo, testifying under oath, said: I cannot deny it. We have been successful in organizing all the musicians of the United States and Canada. 6. The recording companies, the radio networks, and the producers of motion pictures are all under contract with the American Federation of Musicians. They cannot employ any musician who is not a member of the federation. By virtue of the conditions imposed these contracts are, in effect, restricted licenses to do business issued by the American Federation of Musicians. 7. The constitution of the American Federation of Musicians (art. X, sec. 47) provides as follows: Members of the federation must include in any and all of their contracts with employers the following stipulation: "As the musicians engaged under the stipulations of this contract are members of the American Federation of Musicians, nothing in this contract shall ever be construed as to interfere with any obligations which they owe to the American Federation of Musicians as members thereof." * 1 "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. voting privileges of members are so allocated as to permit a minority domination through grossly unequal allotment of voting power" (p. 159, Rept. No. 1503, 79th Cong., 2d sess.-The Lea All contracts of any character or nature for the rendition of musical services are subject to all the existing and future provisions of the federation's constitution, bylaws, rules, and regulations, and all amendments thereto, all of which are made part thereof, with the same force and effect as if they were incorporated therein in full, and in the event of any inconsistency or conflict the provisions of such constitution, bylaws, rules, and regulations shall control. 8. No member of this union is permitted to employ any booker, agent, personal or other representative, or manager who does not hold a license or permit then in force from the American Federation of Musicians (constitution, art. X, sec. 52): No member shall employ any booker, agent, personal or other representative, or manager, or secure or accept any engagement, for himself or for any other member, orchestra, or band, directly or indirectly, from or through, or with the assistance of, any such booker, agent, personal or other representative, or manager who does not hold a license or permit then in force, for that purpose, from the American Federation of Musicians. No member shall participate in any employment or engagement so procured. Such violation by a member shall constitute the resignation of each such violating member as a member of the American Federation of Musicians and any local affiliated therewith. 9. The constitution of the American Federation of Musicians grants absolute and dictatorial powers to its president, James Caesar Petrillo (art. I, sec. 1): Duties of president: It shall be the duty of the president to preside at all meetings of the federation and executive board; sign all documents of an official character pertaining to the federation; sign all vouchers; appoint all committees unless otherwise ordered. It shall be his duty and prerogative to exercise supervision over the affairs of the federation; to make decisions in cases where, in his opinion, an emergency exists; and to give effect to such decisions he is authorized and empowered 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) enforce 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, in which case such change shall be published in the next issue of the International Musician after its promulgation; the power so to do is hereby made absolute in the president when, in his opinion, such orders are necessary to conserve and safeguard the interests of the federation, the locals. and/or members; and the said power shall in like manner extend to and include cases where existing laws are inadequate or provide no method of dealing with a situation. * * * 10. With or without cause, James Caesar Petrillo may, and frequently has, canceled the license of a booker or agent representing "name bands" and other musical entertainers. 11. He has used his power to circumvent the civil rights of bookers or agents, has caused irreparable injury to some of them, and had refused for months to grant these victims of his dictatorial power a hearing or review of the charges or complaints made against them. 12. By its constitution and bylaws the American Federation of Musicians has empowered its president or executive board to declare any theater or place of amusement "unfair," and this power was exercised in 1945 to place on the "unfair" list the National Music Camp at Interlochen, Mich. Thereafter, Dr. Joseph E. Maddy, the president of this camp, was expelled from membership in the American Federation of Musicians. This "unfair" listing has deterred hundreds of musicians from accepting teaching positions at the National Music Camp, where instruction in music, drama, and the dance is given to hundreds of boys and girls every summer. This action also prevented the appearance of internationally famous directors and |