NATIONAL RECOVERY ADMINISTRATION
CODE OF FAIR COMPETITION
MOTION PICTURE INDUSTRY
For sale by he Superintendent of Documents, W'ashington D. C. - Price 5 ents
Approved Code No. 124l-Amendment No. 4
Registry No. 1630--03
AS APPROVED ON MARCH II, 1935
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Approved Code No. 124--Amendment No. 4
AMENDMENT TO CODE OFi FAIR COMPETITION
MOTI1~3ON PICTUJRIE INIDUSTIRY
As Approved on March 11, 1935
APPROVING AM~SDENDMET OF CODE OF FAIR COMPETITION FOR THE
M/o~rroN PICTURE INDUSTRY
An application having been duly made pursuant to and in full
compliance with the provisions of Title I of the National Industrial
Recovery Act, approved June 16, 1933 for approval of amend-
ments to the Code of Fair Competition or the M/otion Picture In-
dustry, which amendments are annexed heretol and hearings having
beenm duly held thereon, and the Deputy Administrator having ren-
dered his report containing an analysis of the said amendments,
-togethner with his findings and recommendations with respect thereto,
which said report, recommendations and findings are annexed
NOW, THEREFORE, on behalf of the President of the United
States, thie National Industrial Recovery Board, pursuant to author-
ity vested in it byExecutive~ Orders of the President, including Ex-
ecutive Order N.6859, dated September 27, 1934, and otherwise
does hereby approve and adopt the said report, recommendations and
findings, and does further find that said amendments and the Code
as constituted, after being amended comply in all respects with the
pertinent provisions and will promote the policy and purposes of said
Title of said Act, and does hereby order that said annexed amend-
ments be and they are hereby approved, and that the previous
approval of said Code is hereby modified to include an approval of
said Code in its entirety as amended.
NATIONAL INDUSTRIAL RECOVERY BOARD,
By WT. A.. HARRIMAN, Adminitstrative Of)Ecer.
At~pproval recommended :
SoL A. ROSENBLATIT,
Divisiol 1dnl A in istrator.
WASHINGTON, D. C.,
March 11, 1935.
REPORT TO THE NATIONAL INDUSTRIAL RECOVERY
NATIONAL INDUSTRIAL RECOVERY BOARD,
LNational R~co~er~y Admlin~istrationb,
GENTLEM~ENV: This is a report on twelve proposed amendments to
the Code! of Fair Comlpetition for the Mfotion Picture Industry.
An application was duly made by the Code Author~ity on behalf of
the Industry for approval of these amendments, and a public hear-
inlg was held on December 19, 1934, in the small ballroom of the
Willard Hotel in Washington, D. C., after due notice of such
hearing had been given. Every person who requested to be heard
was given an opportunity to state his views in accordance with the
requirements of t~he National Industrial Recovery Act.
Various portions of the Code are proposed to be amended and
the amendments are accordingly treated separately een
I. T'he purpose, of the amendment to Article I istoredue .h
adminlistrative diffc~ulties. The number of members of the Indus-
try in Hawaii and Puerto Rico is small, their problems are different
from those in the Indiust~ry on the mainland and it is impracticable
to admiinister the National Code there or form the Boards set up
under the Code to settle the problems that arise. A proposed Code
is under consideration in both Hawaii and Puerto Rico and the
Industry in those territories is best. qualified to formulate a Code
pa~rt~iculalrlyT designed t~o meet their: peculiar requirements rather
than have the provisions of this C~ode applicable to them. The
amendment complies in all respects with the pertinent provisions of
Title I of the National Industrial Recovery Act and will tend to
effectuate the policies thereof.
II. The. puirpose of the amendmernnt ad~ding Section 12 to Article
IVT Division C, Part 1, is to deter attempts to frustrate the spirit
and intent of the Code andi the National Industrial Recovery ~Act.
T'he Code, in certain of the Inbor provisions contained thereinpe
scribes maximum hours of employment and minimum rates of pay
for the majority of the more thann 300,000 employees of the Indus-
try. Since the Code has been in effect, certain employers, in treat-
ing with employees covered by Article IV, Division C, Part 1, have
devised plans with the intent to defeat. these provisions of the Code.
Exhibitors have in some cases contracted with third parties, for the
services of theatre employees, for the definite purpose of avoiding
payment of Clode wage~s or b~einga boundl by Code hours since they
do not come in under th~e dlefnition of members of that Industry
and are not b~oundl by the provisions of any other Codes. The third
party, or independent contractor, who agreed to furnish persons to
perform. the services, in mlany instances refused to comply with the
Code and actually worked his em~ploy~ees more hours and paid them
less wnges than provided in the Code. The amendment provides
that Exhibitors who contract, for such services in the future must
require the contractor to agre~e in the contract to pay the wages
and observe the hours set forthn in the Code. This amendment affects
approximaterly- 75,000 employees engaged in this type of work, and
will result in thie employment of persons not now employed since
addiitional persons will be required to perform services by reason
of the? curtailed working hours of those who are now performing
suchl services wcPithout observance of Code provisions. T'he amnend-
mlent will also add to the purchasing power of those employees who
are now performing such services, since, in the majority of instances
in wPhich independent contractors have furnished the labor, less than
Cod~e wages have been paid as compensation. The amendment will
also definitely tend to improve the standards of labor of this type
III. The purpose of the am~endmnt to Ar-rticle IVy, Division C,
Pa rt 2, Section 1, is to make a deletion for clarification purposes
only. This amnendmenlt does not constitute a substantive change
since the Code specifically limits the definition of Presentation
and Vaudeville to Permanent and travelling companies of artists
playing presentation and vaudeville houses ", but the definition. in
the Code continues by providing that such presentation and vaude-
ville wPas not intended to include rep shows, tab shows, tent shows,
wagon shows, truck shows, medicine shows and show boats." No
difficulties have arisen with. regard to these excluded types of shows,
nor is thne amendment designed to include them. within the Code at
the present time. HowFPever, some presentation and vaudeville com-
panies have adopted such names as "tab shows" or "show boats "
and sought by such means to escape compliance with the Code. The
employers of performers in these companies, who have sought by
these means to defeat the purposes of the Code, are actually the
" presentation and vaudeville companies referred to and described
in the Code provisions as they now exist. There is nowhere in
existence specific definitions of the various terms used in describing
the types of shows exempted from. the Code provision except that
the Code provision itself defines the terms as these terms are un-
derstood mn the theatre." The definition resulted in considerable
confusion and subterfuge. TPhe Code as constituted after being
amended by the deletion of these words covers no group that was
not adequately represented before approval of the Code, since ]Pres-
entation and Vaudeville is still defined by the Code as Per-
rnanent and travelling companies of artists playing presentation
and valudeville houses" and all such companies were intended to be
covered by the Code and should be subject to it now. The a~med-
m~ent will improve the standards of labor of the employees in those
shows in which the employer used one of the above mentioned terms
to circumvent compliance with the Code, since the object in1 the
use of such terms was to pa~y the employees less than the minimum
wages and to require the performers to work more than. the maximum
hours provided in the Code. The amendment will also increase
the purchasing power of thne employees referred to above, and will
tend to make necessary the employment of persons not now
IV.J Th~e amendment to Art~icle IV, Division C, Part 2, Section
8 (a), is for the purpose of more adequately providing compensation
for principal performers in vaudeville and mnsurmng to them a fair
wage for rehearsal periods which extend beyond what is generally
considered to be a reasjonable time within which to perfect an act.
The amendment provides for the payment to principals of one-half
of the weekly wage of such principal~ for each week or part thereof
that the rehearsal ext~endls beyond twBo weeks. In numerous instances
principals have been required to rehearse long or unreasonable pe-
riods, and this amendment is designed to provide compensation for
such principals in such instances. It is difficult to estimate thle
amount of increased wages that will result from the approval of this
amrendnment because, efforts will be made by employers to perfect and
booki acts within th two weeks period. HE-owever, there will be inz-
creased wages inl somel~ instances that will :increase. the purchasing
power of those: principals who are required to rehearse more than
twpo weeks and wcho have heretofore not been compensated for such
period, andl the amendmlent will also improve the standards of labor
of these~ persons.
V. The amendment to Article IV, Division C, Part 2, Section 4 (a)
(8), provides for the payment o~f $;7.50 net in cash per day t~o per-
formaers employed on a per diem. basis for each theatre in which such
performer appears. The original Code provision for which this
amendment is p roposedl as a substitute provided for a $7.50 per diem
rate and was intended to accomplish thze same result as the amend-
menlt, but it has been, found that certain performers were thereafter
required byr their employers to play in more than one theatre in a
single day and that the Code provision as worded was not sufficiently
clear to indicate this intention of the original provision. In a sub-
sequent provision of the Code, applicable to principals, it is provided
that Owing to the peculiar nature of the stage presentation and
vaudeville business and the conditions prevailing therein, the chang-
ing nature of the ent~ertaoinme~nt etc. "' it is recognized that it is
impossible to fix the maximum hours per week of artists appearing
in such threatres." Since no maximum hours are fixed, thie justicec,
of permitting employers to require that principals appear mn mrore
thanr one theatre inr one day and be complensated only the minimum
rate, is apparent. The amendment will definitely improve the st~and-
ards of labor of the performlers who are not required to perform in
more than one theatre and will :increase the purchasing powmer of
those per~form~ers who m~ay, after approval of the amendment, be
required to perform in more than one theatre in. the same, day and
w~ho have heretofore, not been compensated for such extra services.
VI. The amendmentn to A1~rticle IV, Division C, Part 2, Section
4 (b), which deletes the last sentence in the first paragraph and
inserts in. lieu thereof thie proposeed amiended provision, provides
that no ch~oru~s person shall be required to report for work before
9 o'clockl A. M. except, on one day a week, on which day such a chorus
person may be required to report at 8 A. M. The amendment pr~o-
vire~s, h~owev~er, that such chorus person shall receive one and one-
hralf times hisrguar rate of pay for th~e time wTorked before 9 A. Ml.
Thec original Coe revision for which this amendment is proposed
as a substitute made no exception to the requirementn. that no chorus
person be required to report before 9 A. MI. The exception provided
fEor herein. does not increase the maxrim~umn number of hours that a
chlor~us person may be required to work but merely permits an
employer to utilize thne services of the employees at an hour earlier
than; 9 A. M. On one day a week, providing that wages of time and.
a half are paid to such employees for such period. The amencdment
is designedl to provide adequate rehearsal time on the one day in
a week on which the weekly show is changed and a new show is pre-
6eented. Th~e period of time between 9 a. MI. and the opening hour
hans been found to be inadequate and the limitation of the Code pro-
vision has worked a hardship in some instances. The amendment
will remove this condition but at the same time provide for ade-
quate compensation for the additional service, and will increase the
purchasing pown~er of chorus persons performing in presentation
and vaudeville houses, since numerous persons of the Industry
have indicated approval of and intention to utilize the services of
chorus persons during the period provided. This will necessitate
the payment for such chorus person of the extra compensation
provided for in the amendment.
VII. The amendment to Article IV, Division C, Part 2, Section
4 (b), which adds a paragraph immediately before subdivision 1
thereof, is an amendment to that portion of th~e Code which provides
that a chorus person be released from work with. pay one? day out
of every seven days. Lay-off periods were rare and uncertain be-
fore th~e adoption; of the Code and the original Code provision
coupled with this amendment will definitely improve~the standards
of labor for chorus persons. The amendment permits an employer
the option of following the original Code provision or providing
one full week's lay-off with pay for chorus persons after six consecu-
tive weeks of employment. The amendment also provides that if
a chorus person receives less than six weeks employment, suchl chorus
person shall be paid on the basis of eight days pay for each seven
days work. The testimony adduced at the hearing showed th~at
the practical operation. of the original Code provision has resulted
in some inefficiency since if the show continued, as it does in most
instances, for a period of seven days, it was necessary to release
chorus persons on alternate days which disrupted the routine, the
relative positions of the chorus persons in th-e show for that week
and made daily changes of position necessary. The amendment will
correct this situation. in that a person now may be laid off during
the course of a whole week's show without disrupting the routine
of the show. A protection for chorus persons is provided in that
if tlhe employer has elected this manner of providing lay-off to
employees and the employment lasts less than a period of six weeks,
the chorus person receives compensation in the form of an extra
day's pay for each week of employment 'during which no period
of rest was provided.
VIII. The amendment to Article IV, Division C, Part 2, which
deletes the present Section 4 (b) (6) and adds a new Section 4 (b)
-(6), provides that'if a chorus person is laid off because of irregularity
of bookings after the first two weeks of consecutive employment, such
person may be laid off for a period of seven days mn any six: weeks
period without pay. The amendment further provides that if addi-
~tional lay-off is required, chorus person shall be paid for the period
dfJI such additional lay-off at the rate of $3.00 per day as long as
the lay-off continues. The original Code provision provided for
the payment of $3.00 per day to chorus persons for each day of lay-
off after the first two weeks of consecutive employment. It has been
found, however, from the experience of the operation of this provi-
sion o~f the Code that short layp-offs from time to time are unavoid-
a~ble and that an undue hardship is worked on the employer if he
28 required to pay the rates now specified in the Code for each day
of lay-off. It has been found also that seven days in a sur weeks
period is a reasonable amount of layq-off for chorus persons and this
amenmen soprovides. The testimony adduced at the hearing
indicates that ti amendment wRill maore equitably provide for
compensation with respect to lay-off periods.
IX. The amendment to Article IV, Division C, Part 2, which
deletes the present Sectio-n 6 (b) and adds in lieu thereof a new
Section 6 (b), provides that if an employer dispenses with the
services of a chorus ~person, such chorus person shall be paid in
cash the amount of the cost of his transportation, including sleeper
and transportattion. of baggage, back to point of origin whether
the chorus returns immediately or not. In a, numbr of instances
in the past, employers have t.ahren a show and chorus on the road
to different cities in the UJnited States an if the show did not
prove a success, it became the practice of employers, either because
of insufficient finances or for other reasons, to dismiss the chorus
persons on the road, and provide no arrangement for the transpor-
ta.tion of such- chorus person back to the pomnt of origin. This prac-
tice frequently resulted in chorus persons being stranded without
funds, sometimes great distances from their homes or point of pos-
sible reemployment. T'he original Code provision, for which this
amendment is proposed as a substitution, was couched in vague
language and it was deemed advisable to more explicitly require that
the chorus person be provided with means to return to the point of
origin. Trhe amendment will definitely tend to corrc and eliminate
a relief problem that has, in the past, com about in communities in
which such persons have been stranded and will improve the
sta~ndarrds of labor of chorus persons.
XI. The amendment to ~Article IV, D~ivision C, Part 2, Sub-Section
6, adds a new paragraph to be known as Paragraph C, and for the
purpose of clarity provides that if a chorus person terminates his or
her contract, the emp loyer is nlot required to provide transportation
or sleeper back to the point of o~rigin. The facts adduced at the
hearing shows that this is a fair provision.
XI and XEII. TIhe amnendment to Article VI, Part 1, Section 7 (b)
and the amendment to Article VTI, Part 2, Se~ction 7 (c), provide a
longer period of time wsit~hin which the~ Code Authority may make
its determination of appeals. These two amendments are adminis-
trative in nature and will facilitate! the orderly processes of admin-
istering the Code by providlingr a mlore reasonable tim for the Code
Authority to examine into th~e merits and pass upon matters which
have been determined by the various Boards set up under the Code.
I find in conclusion that all of the twelve amendments which are
attached hereto were duly submitted by the Code Authority or
assented to by that body in conformity witi; Article IX, Part 2, of the
Code of F'air Comlpetition for the M~otion Picture Industry and that
said amendments comply in all respects with the pertinent provisions
of Title I of the Niational I[ndustrial REecovery Act, and that. the
amendments are wpell designed to promote anld effectuate the policies
set forth in Title I of the Act. The amendments and the Code as
amendedl contain no provision designed~i to promote monopolistic
practices or designed to either elimlilnate, oppress or discriminate
against small enterprises. The effect of the amendmecnts which may
reasonlably- be atnticipated is neithler to remove nlor increase restraints
on competition and place no unreasonable burden upon either large
or small enterprises. The amlrendmentstt and the Code as amended wPlll
te~nd to induce~ and maintain united action of labor and management
under adequate government supervision and will increase the oppor-
tunity for harmonious relations, and will tend to reduce or eliminate
strikes and other forms of controversies between labor and mtanage-
ment. The amendmlents and the Code as amended will tend to elimin-
natee unfair competitive practices between members of the Industry,
and will increase purchasing power and will tend to reduce and
I therefore recommend to t~he National Industrial Recovery Board
the approval of the said amendments to the Code of Fair Competi-
t~ion for the Motion Picture Indfustry.
WELIAM P. F1BNSWOnan,
SOL, A. ROSENBLABTT,
Divisi'on Admllin;i st/rato r.
WASIBHINGTox, D). C.,
March $, 1f935.
AMENDMENT TO CODE OFi F`AIR COMPETITIONS F`ORI
TCHE MfOTIONJ PI[CTUCRE INPDUST'RY
Amlendl Article I-A-1~dd the following new section to be known as
Section 16 and to read as follows:
Thris Code shall apply only to the Cont~inental United States,
andc to the Territoryr of AlaskLa."
Amend Article IV, Division C Part 1--Add the following new
section to be known as Section (12 and to read as follows:
No exhibitor shall enter into any agreement, directly sfb~or indi-
rectly, for services of a kind usually and customarily perfomdb
theatre employees directly compensated by exhibitors unless such
agrrleemnent provides that no p~erson actually engaged in, rendering;
suchn serv\ices shall be employed at a. lower scale of wages or for a
greater nulmb~er of hours than provided for in this Code; provided,
however, that this provision shall not apply if the agreement for
serv~icesi w~as entered into in. writing prior to Ithe effective date of this
A~metnd A~rticle IV7, Division C, Part 2, Section 1 (a)--Delete~ t~he
( "* rep )show\~S, tab shows, "tent shows, wagon "
shows, truck ") shows, medicine shows, show boats "
Amend Article IV, Division C, Part 2--Delete the present Section.
3 (a)and insert in lieu thereof the following new Secrtion 3 (a) :
nthe event that the rehtearsall period for principals extends
more than two (2) wrjeeks, each principal required to rehearse shall
be paid one-half of the weeekly wage for such, principal for each week
or part thereof that th.e r~ehearsl~n extends beyond two (2) wFPeeks."
Amend Article IV, Division C, Part 2--Delete the present Section
4 (a) (3) and insert in. lieu thereof th~e following new Section
4 (a) (3) :
The minimum wag~e of a performer employed on a per diem '
basis and compensatedi in anly manner shall be $7.50 net inl cash per
day for each theatre in which such a performer appears.""
Amend Article IV, Divisio~n C, Part 2, Section 4 (b)-Dlelete the
last sentence of the first paragraph and insert in lieu therleof the
"' No chorus person shall be requir~ed: to retpor~t at a theatre before
nine o'clock Ar. MI. erclept as hercinaffter provided. A ch~orus1 person
may be required to report at a, theatre not earlier than eight o'clock
A. Ml. On no more than one day in eachb weelk, provided suchl day is
the day of opening of a new wneeklyl program, and provided, furthr,
that such chorus person shall be compensated for alfl such timee prior
to nine o'clock A. MI. at not less than the rate of one! and one-half
times his regular hourly rate. In1 computing thle amlount to be paid
as herein provided, thre regular hourlyj rate at whlich such chorus
person is employ)edl shall be deter~mined for this purpose by dividing
the amount per w\eek; which he shall regularly be paid by- forty."
Amlend Article IV, Division C, 1Part 2, Section. 4 (b)--And the
followingparagraph immediately before sub-division (1 ) thereof:
In te event the Exhibitor or independent contractor in any
theatre wChich maintains a resident chorus under weekly contract so
elects and notifies such chorus, then~r instead of the above-mentioned
lay-off period which. provides that the chorus be given one day off
per weekr with pay, the chorus person may be given lonment ful we
lay-ff ithpay after sixz consecutive weeksofepymn;ro
vid~ed, however, that if a chorus petsrson workiing in a thleatlre operat-
mng under such policy recei-ves less than six week~ls' employment, the
chorus person shall be paid on a pro rata basis, which pro rata basis
shall be computed upon. a basis of eight days' pay for enc-h seven days'
work. Provided further, that when the chorus person is given one
full week's layr-off with pay after six consecutive weeks of employ-
ment the chorus person shall on. request rehearse not more than ten
hours during the week of lay-oflf, but shall not be r~equelsted~ to
rehearse at all during the week prior to such lay-off."
Amend ~Article IV, D~ivision C, Part 2--Delete the present Sec-
tion. 4 (b) (6), and insert in lieu thereof the following new Section
4 c(b) (6) :6
"If a lay-off is required because of irregularity of bookings after
the first two (2) weeks of consecutive employment, a chorus person
may be laid off without pay seven (7) days in any six (6) weeks'
period. Such lay-off may occur at any time after the first two weeks
of consecutive employment. If additional lay-off is i'equired, the
chorus person shall be paid for the period of such additional lay-off
at the rate of Three Dollars ($3.00) per day as long as the lay-off
Amend Article IV, D~ivisio~n C, Part 2--Delete the present Section
6 (h) and insert in lieu thereof the following new Section 6 (b)
((If individual notice of contract termination is given by the
emnployerl the chorus person shall be paid in cash the amount of the
cost of his or her transportation (including sleeper $nd the cost of
transportation of his or her baggage) back to the point of origin
whether the chorus returns: immediately or not."
Amend Article IV, Division C, Part 2, Section 6-A~dd the follow-
mng new paragraph~ to be known as Paragraph (c) :
"' If an individual notice of contract termination is given by the
chorus person, the empl-loyer is not required to provide transportation
Amend Article VI, Part 1, Section 7 (b)--Add after the word
"Appeal in the seventh line ~therof, th~e following-: unless the Code
Authority shall extend the time to r-ender its decision, which exten-
sion shall in no event exceeed thirty (30) d -ays." flowng,
Alm~end Article ~VI, Part 2, Section 7 ()Adtefloig
'"unlless the Code Authority shall extend the time to render its
decision, which extension shall in no event exceeed thirty (30) days."
Approved Code N~o. 124---Amcndment No. 4.
Registry No. 1639-03.
UNIVERSITY OF FLORIDA
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