MUSICIANS PERFORMANCE TRUST FUNDS TUESDAY, MAY 22, 1956 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE OF THE COMMITTEE ON EDUCATION AND LABOR, The subcommittee met, pursuant to recess, at 10:30 a. m., in the auditorium of the Police Building, 150 Los Angeles Street, Hon. Phil M. Landrum (chairman of the subcommittee) presiding. Present: Representatives Phil M. Landrum, James Roosevelt, and Joe Holt. Also present: Russell C. Derrickson, chief investigator. The committee has received a considerable number of communications, telegraphic and by letter also, endorsing the trust fund and wanting the trust fund continued as it is. Of course this committee has no power to discontinue it, but the telegrams and letters have arrived. It would be impractical to put them into the record, but we will make a list of those who have written letters or sent telegrams. The letters and telegrams have the same general content endorsing the trust fund. That would be in substance what is wanted in the record. Also this morning we were to hear Mr. Dick Powell who, because of an unexpected call, is prevented from appearing on this schedule. He will have a statement sent to the committee which will be put in the record at this point and will be available for study. (The statement referred to will be available for reference when furnished.) Mr. LANDRUM. We will call, then, as the first witness to appear here this morning, Mr. John te Groen, president of local 47, American Federation of Musicians. Is Mr. te Groen here? STATEMENT OF JOHN TE GROEN, PRESIDENT, LOCAL 47, AMERICAN FEDERATION OF MUSICIANS; ACCOMPANIED BY MAURY PAUL, RECORDING SECRETARY; G. R. HENNON, FINANCIAL SECRETARY; MICHAEL G. LUDDY, COUNSEL; WARD ARCHER, RADIO REPRESENTATIVE; AND PHIL FISCHER, INTERNATIONAL STUDIO REPRESENTATIVE Mr. TE GROEN. Gentlemen of the committee, I would like to introduce Mr. Michael Luddy, my counsel. Mr. HOLT. Do you want to have the other gentlemen up here with you? Mr. TE GROEN. Mr. Paul or Mr. Hennon. I think they ought to be up here. Mr. LANDRUM. Bring them around if you so desire. Mr. TE GROEN. Gentlemen, this is Mr. Bob Hennon, our financial secretary, Mr. Maury Paul, our recording secretary, Mr. Phil Fischer, our international studio representative. Mr. LANDRUM. Now, Mr. te Groen, if you will identify yourself to the reporter for the record. Mr. TE GROEN. My name is John te Groen. I am President of Local 47, American Federation of Musicians, Los Angeles. Mr. LANDRUM. Mr. te Groen, how long have you been president of local 47? Mr. TE GROEN. Since December 1950. Mr. LANDRUM. Were you elected president by the membership? Mr. LANDRUM. Under its local constitution and bylaws? Mr. LANDRUM. Has there been any action by the membership of local 47 since you were first elected president seeking to remove you or to elect someone in your place? Mr. TE GROEN. Let's go back to 1950. There was an opposition party opposed to our administration at the time. We have biennial elections, every 2 years. In 1952 there was some opposition to us. In 1954, no opposition. The next election is in December of this year. You evidently had reference, Mr. Congressman, to the meeting of February 27 of this year, at which time the meeting allegedly suspended me. Mr. LANDRUM. Which time was that? Mr. TE GROEN. On February 27 of this year. Mr. LANDRUM. Was a meeting held in February of this year to elect new officers? Mr. TE GROEN. No, sir; this was a general membership meeting, at which time Mr. Read was to give his report as a result of his meeting with the international executive board on the trust fund appeal. At that time certain situations arose in the meeting that brought about the alleged suspension of myself. Mr. LANDRUM. Who did the suspending or who tried to do the suspending? Mr. TE GROEN. The members assembled at that meeting. Mr. LANDRUM. How many members were present, approximately? Mr. TE GROEN. I would say between 1,800 and 2,000. Mr. LANDRUM. Did thev at that time also elect other officers? Mr. TE GROEN. They did not, sir. Mr. LANDRUM. Did they designate any individual other than you to serve as president? Mr. TE GROEN. Let me clarify this for you, Mr. Congressman, if you will. Mr. LANDRUM. Please. Mr. TE GROEN. The thinking at this meeting was formulated due to a resolution that I and my fellow delegates had signed at a tristate conference known as the California-Arizona-Nevada Conference of Musicians Locals. A grassroots movement started at this conference, and a resolution was introduced that sought to condemn anyone who had for their motives the weakening or the destruction of the music performance trust fund. I signed this resolution along with Mr. Hennon and Mr. Paul. Our thinking was that, after all, the trust fund has rendered a greater service to the community. Mr. Read on many occasions has stated, as he did here yesterday, that he was in favor of the trust fund. We signed this because we felt we didn't want anything to happen to the trust fund. At this meeting there was read an excerpt from a statment which appeared in Variety, our local trade paper here, that misquoted actually the action of the delegates to this conference. I have in my possession here a photostatic copy of this resolution which I would like to introduce as evidence. (The resolution referred to follows:) RESOLUTION Whereas the recording and transcription funds, established by the American Federation of Musicians, and the music performance trust funds, an independent trust, established after the Taft-Hartley law outlawed the recording and transcription fund, represent the first forward step in combating the unemployment of musicians caused by the mechanical reproduction of musical services; and Whereas these funds have contributed inestimable good to the cause of live music and to the culture of the United States and Canada; and Whereas it has been brought to the attention of this, the 18th annual meeting of the California-Arizona-Nevada Conference of Musicians Locals, that forces are at work which may destroy the music performance trust funds: now, therefore, be it Resolved, That this conference go on record as vigorously opposing any movement which has for its purpose the weakening or destruction of these funds, and further, that it affirms its support of President Petrillo in his efforts to protect the interests of the great membership of our federation. Adopted by unanimous consent and signed by every delegate present. JEROME J. RICHARD, Secretary-Treasurer. (EDITORS NOTE: Signatures on above resolution too voluminous to print, but are carried on original, which is filed for committee reference.) Mr. TE GROEN. The members felt, inasmuch as they had made such violent protests to the trust fund and its operations, that the officers of the organization were no longer representing them. Mr. Congressman and gentlemen of the committee, in the framework of our own constitution and bylaws Mr. LANDRUM. You are speaking of local 47? Mr. TE GROEN. That is correct, sir. There is a very definite routine that is spelled out as to how a man holding office as an officer of the organization can be removed. In short, this is a serious matter. After all, we are elected by the membership, and the membership is entitled to know when an officer has done something which is out of line. If he is subject to removal, then it should be published in our monthly manual known as the Overture, which was not done. This came right out of the blue. It was very unexpected as far as we were concerned. To say the least, I was shocked by such a violent action. Mr. HOLT. I don't think we have for the record, Mr. te Groen, a copy of the constitution of local 47. Mr. TE GROEN. I have it here, sir. Mr. HOLT. I don't know whether you want to put it in all at once. (Constitution and Bylaws, Musicians' Mutual Protective Associa tion Local No. 47, referred to, has been filed with the committee and is available for reference.) Mr. TE GROEN. In other words, the charges must be in writing. Mr. HOLT. It is pertinent not only to this point, but also I think the constitution probably tells how a man makes a claim through your business agent. Isn't that in your constitution as well? Mr. TE GROEN. On the business agent, sir? Mr. HOLT. I don't want to get you off the track, but as I understood it yesterday, the process is spelled out. When a musician wants to make a claim for some money which is due him through a show which is being rerun or something, as I understand he has to make a claim with the local business agent. Mr. TE GROEN. That is correct. Mr. HOLT. Is that spelled out in there also? Mr. TE GROEN. It is, yes; the process of claims, that is correct, sir. Mr. HOLT. Mr. Chairman, I would like to put that in the record at this point. (Off the record.) Mr. HOLT. I will withdraw that request. Any certain part can be put in later. Excuse me for interrupting the continuity of your testimony. Mr. TE GROEN. I think you gentlemen are probably interested in just what happened in local 47. If you will permit me a few minutes, I would like to bring you up to date from our side of it. Mr. LANDRUM. We understand that is the purpose of your appearance here, and we do want to hear it in as much detail as you would like. So proceed. Mr. TE GROEN. Thank you. First of all, in 1952 the motion-picture industry negotiated with President Petrillo and the executive board for the purpose of rescoring television film which had been lying on the shelves for many years, to be displayed over television. They stated that while they didn't owe any money to the musicians who made this film, they did feel there was a moral responsibility on the part of the industry inasmuch as our musicians had performed on these films and were paid for it, but for one specific purpose, and that is to display them in exhibition houses, in theaters. After the negotiations got underway it was decided that a formula of $25 per man per picture for unlimited reusage of this film should be the new policy. Mr. HOLT. We have here today a worksheet of definitions which I appreciate receiving, but I want to make sure I get this straight this morning. This is film which is going to be exhibited in motionpicture halls? Mr. TE GROEN. No, sir; on television. Mr. HOLT. Everywhere? Mr. TE GROEN. Television. Mr. HOLT. Television only. Thank you. Mr. TE GROEN. Yes. Mr. HOLT. I wonder if we could make these definitions a part of the record somewhere. Mr. LANDRUM. We will. (Definition of terms referred to follows:) DEFINITION OF TERMS Twenty-five-dollar payment (motion pictures sold to television) This payment was made to musicians on motion picture theatrical films sold or leased to television. Television film This is film produced for the primary purpose of showing on television; 80 percent of this film is made with "canned music" from abroad, because if "live American music" is used, the federation requires large payments to the trust fund, in addition to the musicians' salaries. Canned music (for use on television film) This is all made abroad (or supposed to be). Companies such as Capitol Records, Sam Fox Music Co., and the networks, maintain large supplies of "canned music" which are leased to television producers to provide the music for television films. American "canned music" Prior to 1951 or 1952, the federation entered into contracts with record and transcription companies which permitted American musicians to make "canned music" or "library service transcription" as it was called. This "canned music" was used on radio programs and live television shows to replace live musicians. This type of recording was stopped in 1951 or 1952. Live network television These are shows that are shown on the network at the time they are performed. No trust fund payments required. "Canned" American or "canned" European music may be used, and is used on many of these "live" shows, as well as live musicians. Network radio shows "Canned music," both European and older American "canned music" is now used on practically all radio shows. No payment to the trust fund and no employment for American musicians. Transcribed radio shows Closed and transcriptions. These are radio programs recorded for one-time use. Very few being made now. Many used to be made. Music performance trust fund Receives the following payments. Motion pictures (sold or leased to television) Five percent of gross revenues derived from the rental and $25 per film for each musician who recorded the music (one payment). This $25 went to the musician before 1955. Television film (produced for television showing) Five percent of cost of producing the show, or 5 percent of network time charges; or if show is syndicated, (sold to individual stations or sponsors in different cities), 5 percent of the rental derived from filmed show. Phonograph records A royalty of about 1 percent on every record sold, and 21 percent of the cost of the musicians who make the records. (This is a wage raise for the musicians which was diverted to the fund.) These phonograph records are used in jukeboxes, radio stations, on live radio and television shows, both local and network. Transcribed radio shows Twenty-seven dollars per man, per show, paid to the trust fund, plus a percentage of revenue derived from sponsor, etc. Mr. TE GROEN. Mr. Hennon just called to my attention that in 1950 we had a rescoring of motion pictures where a man made as high as $1,500 in 1 hour. In looking over the records on this, the national body considered this an exorbitant fee and arrived at this new formula. Mr. Fischer has a complete report on this. I would rather not get into this because this is his department. I am just bringing up to date |