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IN THE WORLD OF MUSIC PUBLISHING
Conducted By V. D. Walsh
Composers, Authors & Publishers Held
to Be No Trust by Federal Commission
SONGS THAT SELL
Governmental Body, After Two Years of Investigation, States There Is No Basis for Prosecu-
tion of Society Under the Statutes Covering Anti-trust Procedure
' T H E United States Department of Justice,
after a two-year investigation, has come to
the conclusion that there is no basis on which it
could prosecute the American Society of Com-
posers, Authors & Publishers for violation of
the Federal anti-trust laws. Colonel William J.
Donovan, assistant to the Attorney General, has
notified the American Society of Composers,
Authors & Publishers of the result of the in-
vestigation, it was learned this week.
The prolonged investigation of the organiza-
tion of composers, writers and publishers was
started by the Department of Justice as a re-
sult of numerous complaints against the society.
Radio broadcasters started the agitation. The-
atre owners, motion picture exhibitors, res-
taurant and hotel proprietors and others who
reproduced copyrighted music for a profit then
joined the fight on the American Society of
Composers, Authors & Publishers.
Colonel Donovan's letter, telling of the ex-
oneration of the society, follows:
Department of Justice,
Office of the Assistant to the
Attorney General,
Washington, July 26, 1926.
Mr. Gene. Buck, President, American Society of
Composers, Authors & Publishers, 56 West
Forty-fifth street, New York, N. Y.
Dear Sir:
In keeping with my promise to inform you
of the conclusion reached as a result of the in-
vestigation of your society for alleged violations
of the Federal Anti-Trust laws, I beg to advise
you as follows:
Upon the basis of the facts submitted and as-
certained, the department has decided that there
is no reason to proceed against the society on
account of its requiring licenses for the public
performance of copyrighted music from the pro-
prietors of motion picture houses, restaurants,
hotels, dance halls and similar places where
copyrighted music is publicly performed for
profit.
No decision has been reached in reference to
the licensing of radio broadcasting stations, as
it is deemed advisable to await the clarification
of the law regarding radio, and possible action
by the legislative branch before taking a posi-
tion in that feature of the case. Yours very truly,
William J. Donovan, assistant to the Attorney
General;
The society, under the ruling of the Depart-
ment of Justice, will continue to issue licenses
to, and collect fees from, radio broadcasters,
theatres, moving picture houses, dance halls,
hotels, restaurants and others using copyrighted
music of members of the society publicly for
profit. In the case of theatres, the society
bases its license fee on seats at the rate of 10
cents a seat annually. At that rate a theatre
with a seating capacity of 1,500 would pay an
annual license to the society of $150. On a
percentage basis the society passes along to
member composers who have assigned their
copyrights part of the royalties on a percentage
basis.
Society Warned of Penalties
The society, under date of July 1, 1926, printed
and distributed a list of its members with a
notice to those reproducing copyrighted com-
positions of members that they would have to
get licenses. The notice warns that violations
or infringements may bring penalties of not less
than $250 nor more than $5,000 for each in-
fringement.
Basis of Investigation
The broadcasters alleged that the Composers,
Authors & Publishers Society had established
practically a monopoly of copyrighted music
through an arrangement by which composers
and others assigned their copyright claims to
the society in return for a percentage of the
royalties collected by the society under a licens-
ing system. The broadcasters said that after
they had begun to popularize copyrighted music
the holders of the copyrights began to raise
their fees as much as 500 per cent.
On their side the composers maintained that
the broadcasters destroyed a large part of the
value of their copyrights by surfeiting the public
with music and "unpopularizing" compositions
that had started out as popular successes. The
controversy had a thorough airing before the
Joint Committee on Patents of the Senate and
House when it held public hearings last April
on the proposed Dill-Vestal bill to amend the
Copyright law. After having laid before the
Joint Patents Committee the arguments of the
composers, E. C. Mills, chairman of the execu-
tive committee of the Society of Composers,
Authors & Publishers, said:
"A year ago the broadcasters went before
Congress and asked for legislation which would
enable them to confiscate copyrighted property
of composers without paying anything. They
failed in that attempt.
"This year they have gone before Congress
with a request for legislation which would en-
able them to fix the prices at which they would
seize our property. That is perhaps a little bet-
ter than the proposal to seize it without paying
anything, but we would still prefer to let the
law of supply and demand rule over the sub-
ject."
Confident of Outcome
J. C. Rosenthal, general manager of the so-
ciety, in commenting on the ruling by the De-
partment of Justice, said:
"This is a ruling we have awaited with much
confidence. After many complaints had been
made against the society we, too, joined in the
demand for an investigation. If we were not
guilty of violating the anti-trust laws we wanted
that fact established, and if we were violating
the anti-trust laws we wished to know it.
At Peace With the World (Irving Berlin)—
New
Always (Irving Berlin)
How Many Times? (Irving Berlin)—New
—
Remember (Irving Berlin)
Don't Wait Too Long (Irving Berlin)
Venetian Isles (Irving Berlin)
I'd Climb the Highest Mountain (If I Knew
I'd Find You)
When the Red, Red Robin Comes Bob, Bob,
Bobbin' Along; (New)
Gimme a Little Kiss (Will Ya—Huh?)
Poor Papa (Has Got Nuthin' At All)
Oh! If I Only Had You—(New)
—
Say It Again
Oh,
Boy! How It Was Raining:—(New)
In the Middle of the Night
Who Wouldn't—(New)
Blue Bonnet—You Make Me Feel Blue
That's Annabel—(New)
Put Your Arms Where They Belong
Up and Down the Eight Mile Road—(New)
Trying to Forget—(New)
I Found a Roundabout Way to Heaven
And Then I Forgot—(New)
Roses Remind Me of You
But I Do (You Know I Do)
Then I'll Be Happy
I Never Knew
That Certain Party
If You Miss Me as I Miss You
Yes, Sir! That's My Baby
To-night's My Night With Baby
Oh, How I Miss You To-night
The Roses Brought Me You
—
—
—
BOOKS THAT SELL
New Universal Dance Folio
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Peterson's Ukulele Method
World's Favorite Songs
Tlddle De Ukes
Strum It With Crumit
Irving Berlin's Song Gems
From the Musical Comedy Sensation
"THE COCOANUTS"
—
Ting-altng the Bell'll Ring
Why Do You Want to Know Why?
Florida By the Sea
The Monkey Doodle Doo
Lucky Boy
We Should Care
IRVING BERLIN, Inc.
1607 Broadway, New York
"We aided the department in the investigation
in every way. We gave them access to our
books and files. The Department of Justice
(Continued on page 38)
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Hinds, Hayden & Eldredge, Inc., Publishers, New York City
35