Evening star., 1940-12-27

u. 5. Will Prosecute
.A.S.C.A.P. and Radio
Interests as Trusts
Attorney General Rules
Public Loses in War
Over Song Copyrights
Es the Associated Press.

Over Song Copyrights
e, the Associated Press.
Music and radio interests, locked
for months in conflict over a new
broadcasting contract, face Federal
prosecution early in January under
the antitrust laws.
Holding that the music loving
public would be the loser If the con-
troversy over song copyrights con-
tinued, Attorney General jackson
announced last night that he had
ordered a criminal proceeding start
ed at Milwaukee against four parties
to the dispute.
These are: The American Society
Of Authors, Composers and Publish-
ers GA. s. c. A. P), the National
Broadcasting Co., the Columbia
Broadcasting System, and Broadcast
Music, Inc, an organization set up
by the radio industry as a whole,
through the National Association of
Broadcasters, to parallel A. S. c. A. P.
Five-Year Agreement Ends.
Through copyrights, a large pro-
portion of modern music is controlled
by A. S. c. A. P. A flve-year agree
ment with the broadcasters expires
December 81, and both N. B. c. and
C.B S. have eliminated A. S. c. A. p
controlled music from their pro-
grams. The broadcasters charge
that A. S. C. A. P.'s demands would
cost them $4,000 600, or more than
twice what they have been paying.
A Justice Department statement
said the proceeding would be based
on these charges:
Illegal pooling of most of the
desirable copyright music available
for broadcasting to create mono
poly, discrimination against users
of copyright music and against COM
posers who are not members OF
either A. S. C. A. P. or B. M. I. with
holding of music from publication to
exact fees illegally. price fixing, re-
straining composers in their right to
bargain for sale of their own music,
requiring music users to pay for
tunes when no music is used, mutual
boycotts by A. S. c. A. P. and the
radio chains in an effort by each to
gain control of the music supply.
Arnold Raps Both Interests.
Thurman Arnold, Assistant At
| torney General, declared in a state
ment that A. S. C. A. P. had gone far
beyond its original purpose of pro-
tecting its members in their copyright
privileges and had engaged in prac-
tices designed solely for the pur-
pose of eliminating competition
He asserted that N. B. C. and C.
B. S., through the creation of B. M. l..
also had engaged in restrictive
practices similar to those which the
department charges were illegally
instituted by A. S. C. A.. P.
Mr.. Arnold said the Justice De-
partment was not concerned with
with the prospect that the boycotts
would obstruct broadcasting of much
popular music and deprive the pub
lie of hearing that music except on
terms dictated by the victor in the
, contest"
European Group Also Accused.
He said that complaints had been
received also against the Society of
European Stage Authors and Com
posers, and were being investigated.
The Justice Department filed an
antitrust suit against A. S. c. A. P. in
1894 but the trial was adjourned in
1885 in futile effort to stipulate the
facts. The case lay virtually dormant
until this year when a new investi-
cation was begun as result of the
fight between the radio chains and
A. S. c. A. P.
This led to negotiations for con-
sent decree, and these appeared to
be on the verge of success until few
days ago.
Announcement of the proposed
criminal action followed breakdown
of negotiations over a possible con-
sent decree which might have solved
the deadlock between ASCAR and
the broadcasters.
Buck welcomes" News.
That proposal was understood to
have called for easing of the process
by which an author may become a
member of A. S. c. A. p, relaxing bar
gaining provisions to permit dealings
between the author and the user of
music, altering the basis of distribut-
ing A. s. c. A. P.'s income in favor Of
those authors whose music is most
widely used, and simplifying licens-
ing arrangement for use of A. S. c..
A. P. music, with the society as sort
of watchdog" for violations.
Gene Buck, ASCAP president, said
in New York it was welcome news"
that the Attorney General had de-
cided to "go into the entire structure
of the monopoly of the air."
His group, he said, had declined
to accept consent decree "requir-
ing the society to do business as pre-
-