Code of fair competition for the motion picture industry

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Title:
Code of fair competition for the motion picture industry as approved on November 27, 1933 by President Roosevelt
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ii, 215-257 p. : ; 23 cm.
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United States -- National Recovery Administration
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Motion picture industry -- United States   ( lcsh )
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non-fiction   ( marcgt )

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Also available in electronic format.
General Note:
Cover title.
General Note:
At head of title: National Recovery Administration.
General Note:
Approved Code no. 124.
General Note:
Registry no. 1639-03.

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University of Florida
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oclc - 31961470
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Full Text






NATIONAL RECOVERY ADMINISTRATION




CODE OF FAIR COMPETITION




MOTION PICTURE INDUSTRY


1. Executive Order
2. Letter of Transmittal
UIV.K Of- FL UBs. 3. Dode


I 0 .--..


U.S. DEPOMTONY *
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933


I* I
For sale by the Superintendent of Documents, W'ashing~ton, D.C. - Price 5 coats


Approved Code No. 124


Registry No. 1639---03


AS APPROVED ON NOVEMBER 27, 1933
BT

PRESIDENT ROOSEVELT


I
I


WE~ DO OUR PART
























This publication is for sale by the Superintendent of Documents, Government
Printing Office, Washington, D.O., and by district offices of the Burean of
Foreign and Domestic Commerce.
DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE

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Seattle, Wash.: 809 Federal Building.












Approved Code No. 124


CODE OF FAIR COMPETITION
FOR THE

MOTION PICTURE INDUSTRY

As Approved on November 27, 1933
BY
PRESIDENT ROOSEVELT





Executive Order

An application having been duly made, pursuant to and in full
compliance with the provisions of title I of the National Industrial
Recovery Actl approved June 16, 1933, for my approval of a Code of
Fair Competition for the Motion Picture Industry, and a hearing
having been held thereon, and the Administrator having rendered
his report containing an analysis of the said code of fair competition
together with his recommendations and findings with respect thereto,
and the Administrator having found that the said code of fair com-
petition complies in all respects with the pertinent provisions of title
I of said act and that the requirements of clauses (1) and (2) of
subsection (a) of section 3 of the said act ha~ve been met:
Now, therefore, I, Franklin D. Roosevelt, President of the United
States, pursuant to the authority vested in me by title I of the
National Industrial Recovery Act, approved June 16, 1933, and
otherwise, do adopt and approve the report, recommendations, and
findings of the Administrator, and do order that the said code of fair
competition be, and it is hereby, approved, subject to the following
conditions :
To effectuate further the policies of the act, that:
(1) Because the constituency of the code authority is named in this
code, the Admninistrator shall have the right to review, and if neces-
sary, to disapprove any act taken by the code authority, or by any
committee named by it, and any act taken by any board named by
it; and
(2) If, in the administration of this code, any member or temp-
poraryy alternate of any member of said code authority, or any
member of any board appointed by the code authority shall fail
to be fair, impartial, and just, the Administrator sha~ll have the
23773"----2449--92-33 (215)





216


right to remove such member or temporary alternate from said code
authority, and to remove such member of any such board, and, if he
deemls necessary, to name another member or alternate from the
general class represented by such removed member or alternate to
replace such removed member or alternate upon said code authority
or upon any such board; and
(3) If! in the administration of this code, it shall be found by
the Adlministrator that there has not been sufficient representation
of any employer class in this industry on the code authority, the
Administrator shall have the right to add members from any such
class to such code authority; and
(4) Because the President believes that further investigation with
respect to the problems of payment of excessive compensation to
executives and other employees in this industry is required, the pro-
visions of article V, division A, part 4, of this code are hereby sus-
pended from operation and shall not. become effective pending fur-
ther report from the Administrator after investigation; and
(5) Because the President believes that writers, authors, and
dramatists are engaged in purely creative worki, the provisions of
article VT, division B, part 5, sections 1 (c), 2, 3, 4, and 6, of this
code, shall not become effective with respect t~o such employees; and
(6) Because the President believes that further investigation is
required with respect to problems generally affecting unfair compe-
titive methods for the services of classes of employees of producers
rendering services of an artistic, interpretative, technical, super-
visory, or executive nature, the provisions of article V, division B,
part 5, sections 1 (c), 2, 3, 4, and 6, of this code, are suspended from
operation and shall not become effective pending further report from
the Administrator, after investigation, as to whether such provisions
should be indefinitely suspended, or modified, altered or changed, or
become effective.
FRANKLIN D. ROOSEV~ELT.
Approval recommended :
Henc S. JoHNson,
A administrator.
THE WHTTE HOUSE,
November 97, 1933.













NOV~EMBER 4, 1933.
The PRESIDENT,
The W4~hite Hou~se.
Air DELn MnR. PRESTDENT: The Heaning OH the COde Of Faif
Competition for the M~otion Picture Industry in the United States
was conducted in the Large Auditoriumn of the United States Chamn-
ber of Commierce Building in Wa'shington, D.C., commnencinga on
September 12, 1933, and ending on Septemiber 14i, 1933, in necordance
with the provisions of th~e National Industrial Recovery Act.
The following papers are included and annexed:
1. Code submitted.
2. Notice of Hearinga.
3. Statement of Procedure.
4. Transcript of Record.
5. Report of the Deputy.
The Code for this industry was formulated by representative
industrial groups, because there is in this industry no trade or
industrial association fairly representative of the indlustry.
This industry embraces all activities connected withi the produe-
tion, distribution, and exhibition of motion pictures in theater~..
The three economic divisions of this industry are: entirely inter-
related w~ith and dependent upon each other, and this Code, there-
fore, embraces every step taken by the Industry fromt the pr~oduc-
tion of motion pictures to their distribution and ther~eafter their
exhibition before t~he public.
The industry assumnes a position of unusual imnpor~tance beenuse
of its far-reaching influence upon social and economic sta~ndar~ds
and conduct throughout the world. The total investmecnt in all
branches of the industry in the United States is estimated at
$2,000,000!000, of which investment $j95,000,000 is r~epr~esenlted by
production studios.
The labor provisions of the Code are, in my opinion, fair and
equitable. Every class of labor in all the divisionss of the industry
is providled for as to minimum rates of pay and maximum hours of
labor, the hours generally in the production field being 36 hours
per week, and in the other divisions of the industry 4l0 hours per
week.
Provision is made for safeguarding the working conditions of
" extras ", free-lance players, and actor emlployees in mnotion-
picture vaudeville and presentation houses.
A Code Authority is provided for writh respect to the adlministra-
tion of the Code, such Code Aluthority beina Inamedl and consisting
of five producers, distributors, and exhibitors writh circuit theatre
interests, and five producers, distributors, and exhibitors w~ithoult
circuit theatre interests.
I recommends such Code Authority, with the proviso, how~ever, that
the Administrator have the right upon proper showing to disapprove






218


any of its acts or the acts of any Committees appointed by it; and
that the Administrator further have the right to remove any member
or alternate from membership upon said Code Authority and to ap-
point his successor, if such shall be deemed advisable, and to add
members to said Code Authority from any employer class in the
industry should the same be advisable.
Provision is made for the seating upon the Code Authority of
representatives of classes of employees whose interests may be af-
fected, upon proper occasion; and also for the designation by the
Administrator of three impartial persons to be appointed by him.
Among the proposed unfair practices is one which provides that
the Code Authority may investigate whether any employer in the
industry has offered an unreasonably excessive inducement to anyone
to enter his employ, and that if found to have done so, such employer
may be assessed the amount of the unreasonable excess payment up
to the amount of $10,000.00. However, nothing in the proposal af-
fect~s the validity of the agreement of employment so entered into
between the offending employer and his employee. I recommend
that such proposal shall not become effective and that the same
shall be indefinitely suspended from operation pending further order
from the President.
Among other practices of producers regulated under this Code,
is one which forbids negotiation with employees prior to thirty
days before the expiration of the period of employment. Any offers
made during such last thirty days must be communicated to the
then employing producer if he has made a bona fide offer for the
continuance of an employee in his employ, and the proposal further
contemplates that with respect to certain employees receiving a
stipulated sum per week, and following the expiration of the period
of employment, the former employing producer shall have notice
for three or six months, as the case may be, of offers made for the
services of such former employee. I. reconunend that such pro-
visions shall in no event apply to writers, authors, and dramatists,
and that with respect to other employees embraced within such pro-
visions that such provisions shall not become effective and shall
be suspended from operation pending further report from the
Administrator after investigation.
Unfair practices by the distributors and exhibitors are specifi-
cally provided for, together with the creation of certain Boards
known as "L Clearance and Zoning Boards and Grievance Boards."
The function of the Clearance and Zoning Boards is to establish a
schedule which will be binding upon all distributors and exhibitors
in any exchange territory regulating the number of days which
must elapse between the theatres in their showing of the same
motion pictures in such territory. The Grievance Boards are set
up as industrial forums before which exhibitors and distributors may
take not only specified grievances and unfair practices for deter-
mination within the industry by such Boards but also may carry
their grievances other than those specified in the Code to such
Boards for determination. The creation of these Boards is in-
tended particularly to care for the buying problems of exhibitoros,
and so that they may be assured to the greatest degree possible o





219


a sufficiency of motion-picture product with which to operate their
theatres.
The various Advisory Boards have approved thiis Code, as well as
labor and representative employers in the industry.
It is believed that this Code as now revised represents a great
advance in dealing effectively w~ith the problems of this industry.
I find that:
(a) The Code as revised complies in all respects with the perti-
nent, proviscions of Title I of t~he Act including, without limitations,
subsection (a) of Section 7 and subsection (b) of Section 10 thereof;
and that
(b) The respective Producers', Distributors', and Exhibitors'
Committees, under their Coordinators, w~ere and are industrial
groups truly representative as a whole of the Mfotion Picture In-
dustry; and that such groups imposed no inequitable restrictions
on admission to membership therein; and that
(c) The Code is not designed to promote monopolies or to elimni-
nate or oppress small enterprises and will not operate to discriminate
against them, and will tend to effectuate the policy of Title I[ of
the National Industrial Recovery Act.
Accordingly, I adopt the report of the Deputy Administrator and
I hereby recommend the approval of the Code of Fair Competition
for the Motion Picture Industry.
Respectfully submitted.
HUGH S. JoHNson,
A administrator.










CODE OF FAIR COMPETITION


FOR THE
MOTION PICTURE INDUSTRY


PREA hBLE

This Code is established for the purpose of effectuating the policy
of Title I of the National Industrial Recovery Act, and shall be
binding upon "all those engaged in the Motion Picture Industry.
ARTICLE I-DEFINITIONS

1. The term Motion Picture Industry as used herein shal: be
deemed to include, without limitation, the production, distribution,
or exhibition of motion pictures and all activities normally related
thereto, except as specifically excepted from the operation of this
Code.
2. The term Producer shall include, without limitation, all
persons, partnerships, associations, -and corporations who shall en-
gage or contract to engage in the production of motion pictures.
8. The term Distributor shall include, without limitation, all
persons, partnerships, associations, and corporations who shall en-
gage or contract to engage in the distribution of motion pictures.
4. The term Exhibitor shall include, without limitation, all
persons, partnerships, associations, and corporations engaged in the
ownership or operation of theaters for the exhibition of motion
pictu res.
5. The term legritimate production as used herein shall be
deemed to refer to theatrical performances of dramatic and musical
plays per~formedl on the stage by living persons.
6. The termi employee as used herein shall be deemed to refer
to and include every person employed by any Producer, Distributor,
or Exhibitor as hereinabove defined.
7. The term clearance "' as used herein shall be deemed to refer
to that interval of time between the conclusion of the exhibition of
a motion picture at a theater licensed to exhibit such motion picture
prior in time to its exhibition at another theater or theaters and
the commencement of exhibition at such other theater or theaters.
8. The term "L zone as used herein shall be deemed to refer to
any defined area embraced within the operations of a local clearance
and zoninga board.
9. The erm non-theatrical account as used herein shall be
deemed to refer to churches, schools, and other places where motion
pictures are exhibited but which are not operated in the usual and
ordinary course of the business of operating a theater for the exhibi-
tion of motion pictures.
10. The term "' affiliated Exhibitor as used herein shall be deemed
to refer to an Exhibitor engaged in the business of operating a
(220)






221


motion-picture theatre which business is owned, controlled, or man-
ag~ed by a Producer or Distributor or in which a Producer or a
Distr~ibutor has a financial interest in thie ownership, control, or
management thereof. The mere owFnership!, however, by a Producer
or Distributor of any theatre premises leased to an Exhiibitor shall
not constitute any such Exhibit~or an '' affiliated Exhibitor.""
11. The term unaffiliated Exhibitor as used herein shall be
deemed to refer to an Exhibitor engaged in thne business of operating
a motion-picture theatre which business is not owned, controlled, or
managed by any Pr~oducer or Distributor or in which no P~roducer or
Distributor has an interest in the ownership, management, or control
thereof.
12. The term "L outside or associated Producer as used herein shall
refer to a Producer of mloton pictures, including features, short sub-
jects, and/or cartoons, and which Producer operates .his or its own
production unit independently of, though in conjunction with,
another Producer or Distributor under whose trade name or trade
mark the productions of said outside or associated 'Producer are
released and distributed.
13. The term "LAdminist~rator as used hlerein shall be deemed to
mean the National Recovery Administ~rator.
14. The term effective d'ate shall be, and this Code shall become
effective on, the tenth day following the approval of this Code by
the President of the United Stat~es.
15. Population, for the purposes of this Code, shall be determined
by reference to the 1930 Federal Census.
ARTICLE II--ADMINISTRATION
1. A Code Authority of the Mlotion Picture Industry constituted
as in this Article provided and herein referred to as the Code
Authority shall be the agency for the administration of this Code,
and shall have such powers as shall be necessary therefore, together
with such other powers and duties as are prescribed in this Co~de.
2. (a) The Code Authlority shall consist of the following:
REPRESENTING AFFILIATED PRODUCERS, DISTRIBUTORS, AND EXHIBITORS
Merlin H. Aylesworth.
Sidney R. KLent.
George! J. Schaefer.
Nicholas AI. Schenck.
Harry 31\. W~arner.
REPRESENTING UNA~FFILIATED PRODUCERS, DISTRIBUTORS, AND EXHIBITORS
Robert H. Cochrane.
W. Ray Johnston.
Ed Kuykendall.
Charles L. O'Reilly.
Nathan Yamnins.
(b) As and when any question directly or indir~ect~ly affecting anly
class of employees engaged in t.he motion picture. industry is to be
considered by the C~ode Author~ity, one re~presentativ-e of such. class,
selected by the Administrator from nominations made by~ such class
23773"---244-92 33 2






222


in such manner as may be prescribed by the Admainistrantor shall sit
with and become for such purposes a member of the Code Authority
with a right to vote.
(c) The Administrator may designate not more than three addi-
tional persons without vote who shall not have any direct, personal
interest in the motion picture industry nor represent any interest
adverse to the interest of those engaged therein, as representatives
of the Administration.
(d) In case of the absence, resignation, ineligibility, or incapacity
of any member of the Code Authority to act, an alternate of the same
general class of the industry and a bona fide executive, or a, bona
fide Exhibitor, as the case may be, designated by such member shall
act temporarily in place of such member. Such designated alternate
shall be certified to the Code Authority by such member but the Code
Authority may reject such alternate and require another to be so
designated.
(e) Each alternate designated by a member of the Code Author-
ity to be a permanent alternate for such member shall be approved
by the Administrator.
(f) In the event any member of the Code Authority is unable
for any reason to designate his alternate, the Code Authority, sub-
ject to the approval of the Administrator, shall select such alternate
from th~e same general class as that of such member.
(g) No employer in the industry shall have more than one repre-
sentative at any time upon the Code Authority.
(h) A vacancy in the Code Authority subject to being filled in the
same manner as above provided in subsection (f) of this Section
shall exist when any member shall cease to be a, bona fide executive
or a bona fide Exhibitor.
3. The Code Authority may make such rules as to meetings and
other procedural matters as it may from time to time determine.
4. The Code Authority may from time to time appoint Committees
which may includ-e or be constituted of persons other than members
of the Code Authority as it shall deem necessary to effectuate the
purposes of this Code, and may delegate to any such Committee gen-
erally or in particular instances any power and authority within the
scope of the powers granted to the Code Authority under this Code,
provided that the Code Authority shall not be relieved of its respon-
sibility and duties hiereunder. The Code Authority may at any time
remove from any Commuittee any member thereof. The Code Au-
thority shall coordinate the duties of the Committees with a view to
promoting joint and harmonious action upon matters of common
interest. Any action taken by any of such Committees shall be
reviewed by the Code Authority.
5. (a) T'he Code Authority shall be empowered to collect from the
members of the industry all data and statistics required by the
President, or reasonably pertinent to the effectuation of Title I of
the National Industrial Recovery Act to compile the same and dis-
seminate without individual identification among the members of
the industry summaries thereof, all in such form and manner as the
Code Aulthority or the Administrator shall prescribe. No such
statistics, data, and information of any one member of the industry
shall be revealed to any other member. The dissemination of sum-





223


marines of such information shall not be deemed a disclosure thereof.
In addition to information required to be submitted to the Code
Authority, there shall be furnished to government agencies such
statistical information as the Administrator may deemn necessary for
the purposes recited in Section 3 (a) of thle National Industrial
Recovery Act.
(b) The Code Authority shall have the right to make independent
investigations of violations or alleged violations of the Code by any
branch of the industry or by any person, firm, or corporation engaged
in any branch of the industry.
6. The Code Authority shall assist the Administrator in adminis-
tering t~he provisions of this Code, in making investigations as to the
functioning or observance of any of the provisions of this Code at its
own instance or on the complaint of any person engaged in thze
industry, and shall report to the Administrator on any such matters.
The Code Authority may initiate and consider such recommendations
and regulations aind interpretations, includ~ing those pertaining to
trade practices, as may come before it.
7. The Code Authority, after notice and hearing, ma~y prescribe
additional rules governing the conduct of Producer~s, Distributors,
and Exhibitors among themselves and with each other and with their
employees, which rules shall be submitted to the Administrator and
if approved by the President after such notice andi hearing as he
shall deem proper, shall constitute rules of fair practice for the
industry, and any violation thereof shall constitute a violation of this
Code.
8. The Code Authority shall, to such extent and in such manner
as may seem most useful, utilize the facilities of national, regional,
and local trade associations, groups, institutes, boards, and organiza-
tions in the industry.
9. No member of the Code Authorityv shall sit on any matter
involving his company's or his own interest directly and not as a
class. In such case the Code Authority, including such ineligible
member, shall designate an alternate of the same general class not
connected withl the company or theatre of the ineligible member to
Slt in mis pince.
10. (a) The Code Authority shall have the right to appoint,
remove, and fix the compensation of all persons whom it may employ
to assist; it. in any capacity whatsoever in administering this Code.
(b) The expenses of the Code: Authority in administering this
Code shall be budgeted and fairly allocated among the three divi-
sions of the industry and assessed against t~he respective members
thereof w~ho accept the benefits of the activities of the Code Author-
ity or otherwise assent to this Code, in such manner as shall be
determined by the Code Authority.
(c) Any person who shall fail to promptly pay any assessment
or levy made pursuant to an order of the Code Authority as any
expense in adlminist~eringa this Code shall not be entitled to fl n
complaint under any ARTICLE or PART thereof.
ARTICLE III GENERAL PaovlsIoNs
SECTION 1. (a) Employees shall have t~he right to organize and
bargain collectively through representatives of their own choosing,






224 .;

and shall be free from the interference, restraint, or coercion of em-
ployers of labor, or their agents, in the designation of such repre-
sentatives or in self-organization or in other concerted activities for
the purpose of collective bargaining or other mutual aid or protec-
tion ;
(b) No employee and no one seeking employment shall be required
as a condition of employment to join any company umion or to re-
frain from joining, organizing, or assisting a labor organization of
his own choosing; and
(c) Employers shall comply with the maximum ours of labor,
minimum rates of pay, and other conditions of employment, ap-
proved or prescribed by the President.
SEC. 2. This Code is not designed to promote monopolies or to
eliminate or oppress small enterprises and shall _not be applied to
diserimmnate against them nor to permit monopohies or monopolistic
practices.
AnTcus IV -LABOR PROVISIONS

A. On and after the effective date of this Code, in the Production
of Motion Pictures:
SECTION i. sOtif8 of employmentf.--(a) No employee shall work
more than forty (40) hours in any one week.
(b) No employee of the following classes shall work more than
forty (40) hours in any one week:
Accountants; accounting machine operators; bookkeepers; clerks;
fireme~n; garage clerks; gardeners; janitors; librarians; mail clerks;
messengers; mimeograph operators; porters; readers; restaurant
workers; seamstresses; secretaries (exclusive of Executives' secre-
taries receiving $35.00 or more per week); stenographers; telephone
and telegraph operators; timekeepers; typists; and watchmen.
(c) No studio mechanic of the following classes shall work more
than thirty-six (36) hours in any one week:
Artists and sculptors; automotive mechanics; blacksmiths; car-
penters; casters and mouldmakers (staff); cement finishers; chauf-
feurs and truck drivers; construction foremen (carpenters); electri-
cal foremen; electrical workers; floormen (electric); foundrymen;
gaffers; grips; laborers; lamp operators; machinists; marbleizers,
graine~rs, and furniture finishers; modelers (staff); model makers
(staff); boulders (metal); operating engineers; ornamental iron
workers; painters; pattern makers; plasterers; plumbers; projec-
tionists (except process projectionists); propertymen; scienic art-
ists; set drapers, sheet-metal workers; sign writers; sprinkler fit-
ters; steam fitters; structural steel workers; swing gang (property);
upholsterers; welders; and Laboratory W~orkers of the following
classifications; Chemical mixers negative assemblers and breaker-
downs; negative developers' assistants, negative notchers, negative
splicers, positive daily assemblers, positive developers' assistants,
positive release splicers, printers, processing and negative poishersJ,
release inspectors, reminders, sensitomaetry assistants, sitboss
printers, and vault clerks.
(d) The maximum hours fixed in the foregoing paragraphs (a),
(b), and (c) shall not apply to employees on emergency, or main-
tenance and repair work; nor to cases where restriction of hours of






225


skilled workers on continuous processes would hinder, reduce, or
delay production; nor to
(1)> employees in executive or managerial capacities, professional
persons, actors (exclusive of so-called extras "); attorneys and
their assistants; department heads and their assistants; directors;
doctors; managers; executives, their assistants and secretaries; pro-
fessional nurses; producers and their assistants; purchasing agents;
unit business managers; and writers; nor to
(2) employees engaged directlyiprdconorwhswrk
ingtim mut ncesariy fllo tat of a production unit, including
art directors; assistant directors; cameramen and assistants; com-
pany wardrobe men womene) anid assistants; costume designers;
draftsmen; make-up artists and hairdressers; optical experts; posi-
t ive cutters and assista nts ; process 9projectionists ; scri pt clerks; set
dressers; "' stand-by or "' key-mnen -; so und mixers; sound record ers;
wardrobe fitters; nor to
(3) employees regardless of classification assigned on location
work; nor t~o
(4) employees engaged directly in newvs-reel production work in
the following classifications: editors and subeditors; film cutters and
film joiners; typesetters; cameramen andl soundmen; the working
hours of news-reel cameramen and soundmen shall be limited to three
hundred and twenty (320) hours in any eight (8) week period, to be
computed from the time such employees leave their base of operation
with their equipment until the time of their return, or are required
to remain in a designated place; contacting and planning shall not
be compulted as working hours; nor shall this limitation on working
hours apply to news-reel cameramen and soundmlen who make special
trips of a semivacational nature on trains, ships, etc., or who shall be
assigned to duty at a summer or winter resort for an extended period
of time, nor to news-reel cameramen and soundmen on roving or
"L gypsyV assignments; nor to
(5) employees of producers of animated- motion-picture cartoons
in the following classifications: animators, assistant animators, car-
toon photographers, story and music department employees, tracers
and opaquers; the working hours of tracers and opaquers shall be
limited to forty-four (44) hours in any one weeki, subject to the
exceptions made herein in cases of emergency.
(e) With respect to those classes of employees speci~ed within
subdivision (2) of the foregoino- subdivision (d) of this Section 1:
(1) such employees employee on an hourly basis or on a daily
basis with overtime compensation shall at the conclusion of any
single production be given a full dayT off without pay for each six
(6) hours of work in excess of a thirty-six (36) hour weekly average
during the production. Employees employed on a weeklybsi
whether by agreement in writing or otherwise, shall not be deee
to be within the purview of this subsection (1).
(2) Art directors, assistant directors, company wardrobe men,
women and assistants, costume designers, dra ftsmen, mnake-up artists,
hair dressers, optical experts, process projectionists, script clerkrs,
and wardrobe fitters receiving seventy dollars ($70.00) or less per
week without overtime compensation, at t~he conclusion of anly single
production shall be laid off one full dlay, without pay, for each six







226

(6) hours of work in excess of a thirty-six (36) hour w~lbkly average
during the production period, but for each six (6) hours or fraction
thereof which each such employee has worked in excess of a fifty-
four (54) hour week average during said production such employee
shall receive one full day's pay.S No such employee shall be ver-
mite t wrkinanthr tuioduring th ieof such lay-off
SEC. 2. Miftimnur W~gy8.--(a) No employee of any class shall be
paid less than forty (40) cents per hour.
(b) The following clerical, offce, and service.employees shall be
paid not less than fifty (50) cents per hours:
Accountants, accounting machine operators, bookkeepers, clerks,
file clerks, firemen, garage clerks, readers, secretaries, stenographers,
telephone and telegraph operators, timekeepers, typists.
(c) No employee of the following classes of studio mechanics shall
be paid less per hour than the rates specified for each class:
Artists and sculptors__ ___ _________ _______ _________ __ _1 $1.9
Automotive Mechanics-_------------_____,_ ---------- ------- ----- 1. 00
Blacks miths- -- __---- -- --- -- -- -- --- -- --- -- 1. 16%
Ca rpenters_ ________ _____________,_,, i. 1.16%
Casters and Ilouldmakers (staff)____,___--___,--- 1. 16%/
Cement Finisher~s ----------- _________ --- 1.16%
Construction Foremen (ca rpen ter) -------- --- -------1. 33%S
Electrical Foremen__________________ ___,,__ 1. 33%
Electrical WVorklers__-___- ______.____ 1. 16%j
Floormen (electric) __-- __--- -_______ 1. 00
Foundlrymen___ ______ ______ ._ _____,_, 1. 16%
Gaffers.-- __ 1.16%__________
Grips__- __ ..________ ______ _____-___ 1. 00
Laborers_-_- --_- __-_____ _____ _____,__ .60
Lamp Operators________________ 1.0(5
M~achinists_______________ -- 1.10%
Manrbleize~rs, Grainers and Fur Fini hlers__-_______--_- 1. 40
Modelers ( sta ff) ____ __ ________ ____1. 04
MlodelmakersF ('st~ff ) 1. 25
Mloultlers (metal) 1.16%q
Operating Engineersi_____________ _- ________- 1. 16'5
Ornamentall Iron WVorkers__---_-_-----__ 1. 16%,
Painters _________-_--_-__ 1.16%r
Pattern Ma13kers- ------ --- ---- ---------- 1. 16%2
Plasterers___----------_- 1. 25
Plumbhers. _____-_---___--- 1. ---- -116%7
Projectionisto_--_---_._-----_--- _--____--- 1. 25
Propertymnen (first)_- ---_- -------- -- ___------ 1. 00
Prope~rty men ( second)--- ------- ------------- 90
Scenic Artists ___----_--------- 2. 25
Set Drapers_ __, 1-_------______-----_--- 00
Sheet metal Workers. ----- ------------- 1. 16%5
sign Writers___-__ 1_-_--_---_-----,---,- 66%r
Sprinkiler Fitters__-_- __--------- i. 116%5
Steam Fitters._--- _---- -------- ------- --- -- 1.16%
Structural Steel Wlorkers_______--------, 1. 16%S
Swing Gang (property)_- --- ...------ -------- --------------- .75
Uph~olsterers _________ ____ __---- 1. 10
W~eldler~s__-------- --------------------------------- 1. 16%
Whien any of the above studio mechanics works more than six (6)
hours per day on: (1) emergency or maintenance or repair workt, or
(2) to avoid hindermng, reducing or delaying production, he shall be
compensated at not less than time and one-half for all overtime in
excess of six (6) hours.
(d) No employees of the following classes shall be paid less per
hour than the rates specified for each class:







227

Assistant Cutters----_--_-----__-------- __----------- ...----- $1. 00
Chauffeurs and Truck Drivers-------------------------- -- --_ .831/8
Laboratory Workers of the following classifications::
Chemical M\ixers--...._ ________ _______ ...___ .70
Negative Assemblers and Breaker-dow-ns------------ -- ---- 81
Negative Developersi' Assis'tants __ __--------- 81
Negative Notchers --_----- -- ---------_--_--. _--_ __. ... .75
Negative Splicers __-_--- -------- -__--_--_--_--------- -__--- .70
Positive Daily Assemblers_ __--_-__-__------------- ----- .75
Positive Developers' Assistants ___. ... ___ ... ._______ .74
Positive Release Splicers--__--_------ ------------ ---- .64
Printers ___--------- ... ----- .81
Processing and Negative Polishers ---- ---- ... ._____ 70
Release Inspectors -_-----_-------- ---- ---------- _-------- .70
Rew~inders_ .. .------- .64
Sensitometry Assistants ------I------- _-- __ 81
Shift Boss Printers... ---------------------- --- -- ...-- .93
Vault Clerks --... -------- ....---- ------- -------- 81
Film Londers- __..------__-------- --------------..... .------- .83)'s

When any of the above employees work more than thirty-six (36)
hours in any one week on: (1) emierge~ncy or maintenance or repair

work; or (2) to avoid hindering, reducing, or delaying production,
he shall be compensated at straight time for all overtime in excess
of thirty-six (36) cumulative hours.
(e) With respect to the following classifications there may be
substituted a weekly wage in lieu of an hourly wage:
Construction F'oremen (carpenter) ----------------,---------__--- $76. 75
Electrical Foreman --------------- ------- --------------------- 76. 75
Gaffer------------------------------------------------- 68. 50
Floormen (electric)___. ---------- -- ...._________------__ 60. 00
Grips __--- -------------------------------------- 60. 00
Property'men (first) ----------- ---------- ---------------- ------_---- 60. 00
However, for "L stand-by or key men ", not more than one maln
of each of the above classifications shall be assigned to any one pro-
ducing unit.
(f) W~ith respect to all employees listed in paragraphs (c) and
(d) of this Section, the for~egoinlg scale of minimum wlages shall
prevail on all locations except that. the following wage scale may be
paid in lieu thereof on distant location, if so stipulated before
employment commences and all such employees' expenses are paid:
Distant locations when employed less than one week of seven
(7) days and subject to '' call at any time ":


Distant
Situdin, location, Distant
hourly rate daily rate location,
when less weekly rate
than I week

$2. 25 $27. 25 $161. 75
1. 94 24. 00 14 1. 75
1. 6645 20. 75 121. 75
1. 40 17. 25 10)1. 75
1.3345 15.75 01.75
1. 25 14. 75 86. 5
1.ls6% 13. 75 81. 75
1. 10 13. 25 78. 00
1. 00 12. 25 7 1. 75
90 11. 50 66. 75
83H 8. 50 51. 75
.75 8. 00 46. 75
60 0. 50 37. 75






228


Wh~en the distant location daily rate above is employed, the total
wage for any one week shall not exceed the distant location weekly
wage.
(g) Every news-reel cameraman or soundman shall be given one
day off with pay for every four (4) cumulative days (24 hours per
day) that he is away from his base of operations, except if on roving
or "gypsy assignments.
SEC. 3. P701'810%8 Regarding "' Ewi~ras."-1~. The Code Authority
provided for in this Code shall undertake and provide for rules and
regulations to be adopted by all casting agencies and/or Producers
with respect to extras ", and shall appoint a standing committee
representative of employers, extra players ", and the public, to
effectuate the foregoing purposes and to interpret the terms of any
provisions made for extras and to supervise the same, receive and
pass on complaints and grievances, and to otherwise aid in effectu-
ating the foregoing provisions, subject to review by the Administrator.
2. Such standing committee under the supervision of the Code
Authority shall cause a reclassification of extras and extra
talent to be undertaken, based upon the following qualifications for
such labor :
(a) Extra players shall be those who by experience and/or
ability are known to be competent to play group and individual
business parts and to otherwise appear in a motion picture in other
than atmospheric background or crowd work.
(b) Atmosphere people who are not to be classified as dependent
on motion pictures for a livelihood, but who may be recorded, listed,
and called upon for occasional special qualifications not possible of
being filled from the registered Extra Players.
(c) Crowds not classified, includinng racial groups, location crowds
where transportation is unpractical and crowd assemblies of a public
natu re.
3. The minimum pay for the foregoing classifications shall be as
follows :
(a) Extra players ", $7.50 per day, with this minimum graded
upward according to the character and importance of the perform-
ance and the personal wardrobe required, the minimum for Class
A "' dress people to be $15.00 per day; provided that, if any extr
player employed as such is required to play a part or btwt
essential story dialogue, such extra player shall not be deemed
to be an "L extra player and shall become a bit player ", and his
compensation shall be fixed by agreement between such player and
the Producer before the part or bit is undertaken, but the minimum
compensation to such "L bit player shall not be less than twenty-five
dollars ($25.00).
(b) Atmosphere people, $5.00 per day; provided that any extra
player "' may accept atmosphere work without losing or jeopardizing
his registration as an extra player."
(c) Crowds, $5.00 per day, provided that this minimum shall not
prevent the employment of large groups under special circumstances
at a rate lower than the minimum.
(d) Transportation to and from location shaUl be paid to extra
players." There shall also be paid to "extra players for inter-






229


views and fittings the payments providled for in Ordler 10-A of
the Industrial WVelfare Conimission of the State: of Califor~nia; except
that in the event that any interview extends beyond one and one
half hours, the ~extra player ", although not engaged, shall receive
not less than one fourth of a dlay's pay, and if any interview- shall
extend beyond two hours, the extra player shall receive an addi-
t~ional one fourth of a day's pay for every additional two hours or
fraction thereof.
4. The followfingr shall be provided for by said standingi committee
among the working conditions to be regulated as above provided:
(a) In Casting Burenus casting and emnploymnent interviews of
women andl children shall be by women casting officials, and men by
men.
(b) Nio one shall be employedl as an extra player or atmos-
phere worker who is a dependent member of the immediate family
of any regular employee of a motion-picture company, or any person
who is not obliged to depend upon extra work as a means of liveli-
hood, unless the exigencies of production reasonably construed,
require an exception to be made. And further, no one shall be emi-
ployed as an extra player or atmosphere worker on account
of pe rsonal favoritism.
(c) Al day's work in any State shall be eight (8) hours, with over-
time as provided by the existing California Sitatutes relating thereto.
(d) No person coming under the above classification (excepting
crowds) shall be permitted to work in more than one picture for the
same dlay's pay, including overtime.
(e) Rotation of work shall be established to such reasonable de-
gree as may be possible and practicable.
(f) No person nlot a register~edl extra player shall be requested
by a studio casting office from any casting agency, and each regis-
tered "' extra player shall be provided w~ith a card of identification;
suitable regulations for carrying ouit this provision sharll be adopted.
SEC. 4. Pi'ODUiSioN8 Regadnin~g '" Free Lance Player~s,--The Code
Authority provided for in this Code shall undertake and provide
for rules and regulations to be binding upon all Producers with
respect to free lance players receiving compensation of one hun-
dred and fifty dlollars ($150.00) or less per week, and shall appoint
a standing committee representative of emlployers, free lance "
players, anid the public, to effectuate the foregoing purposes and to
interpret the terms of any provisions made for "' free lance players,
and to supervise the same, receive and pass on complaints andl gnier-
ances, and to otherwise aid in effectuating the foregoing provisions
subject to review by the Admninistrator..
Such standing committee, under the supervision of the Code
Authority, shall make full investigation with respect to the working
conditions of such free lance "players and shall undertake and
provide for by the rules and regulations hereinabove provided for
with respect to hours of employment for such "' free lance players,
rotation and distribution of work to such reasonable degree as mnay
be possible and practicable, and minimum adequate compensation
there for.
SEc. 5. Overriding provisiones.--If the prevailing wage scale and
maximum number o~f hours per week as of August 23, 1933, as fixed
23773"---241 4-92--.3 33






230


in any agreement or as enforced between the employers~ and associa-
tions of any such employees, however, shall be at a rate exceeding the
minimum wage scale provided for or less than the number of hours
per week herein provided for with respect to any of. such employees,
such scales and hours of labor in the localities where same were en-
forced shall be deemed to be, and hereby are declared to be, the mini-
mum scale of wages and maximum number of hours with respect to
these aforementionedc employees in such localities under this Section
of the Code.
SEO. 6. ChJild labor.--On and after the effective. date of this Code,
no person under sixteen (16) years of age shall be employed in the
production of motion pictures, provided, however, where a State
law provides a higher minimum age, no person under the age speci-
fled by said State shall be employed in that State;, and provided
further, however, where a role or roles are to be filled or appearances
made by a child or children, a Producer may utilize the services of
such child or children upon his compliance with the provisions of
State laws appertaining thereto.
B. On and after the effective date of this Code, in the Distribution
of Motion Pictures:
SECTION 1. a01678 of Employment.--(a) No employee except out-
side salesmen shall work more than forty (40) hours in any one week.
(b) This provision for working hours shall not apply to profes-
sional persons employed in their profession nor to employees in a
managerial or an executive capacity or in any other capacity of dis-
tinct~ion or sale responsibility who now receive more than $35.00 per
week; nor to employees on emergency or maintenance and repair
work.
SEC. 2. Alini97uMW1. lrage8.--No employee shall be paid:
(a) Less than fifteen dollars ($15.00) per week m any city over
500,000) population or in the immediate trade area of such city.
(b) Less than fourteen dollars and fifty cents ($14.50) per week in
any city between 250,000 and 500,000 population or in the immediate
trade area of such city.
(c) Less than fourteen dollars ($14.00) per week in any city or
place up to 250,000 population or in thle immediate trade area of such
city or place.
SEc. 3. On or after the effective date no person under sixteen (16)
years of age shall be employed in the distribution of motion pictures,
provided, however, where a State law provides a higher minimum
age, no person below the age specified by such State law shall be
"employved within that State.
C.On and after the effective date of this Code, in the Exhibition
of Motion Pictures:
Par~t 1. Employees Othe~r th~an Actors.
SECTION 1. No person under sixteen (16) years of age shall be
employed; provided, however, that where a State law provides a
higher minimum age no person below the age specified by such State
law shall be employed in that State.
SEC. 2. NO employee, notwithstanding the provisions of Section 6
(a) hereof, shall work more than forty (40) hours in one week,
except that such maximum hours shall not apply to employees in
a managerial, executive, or advisory capacity who now receive thirty-






231


five ($35.00) or more per week, or to employees who-e duties are of
general utilitarian character, or to emergencies.
SEC. 3. W~ith respect to employees regular~ly employed as ticket-
seller~s, doormen, ushers, cleaners, matrons, watchmen, attendants,
porters, and office help, such employees shall receive not less than a
twenty percent (20,0) increase ov'er the wage paid to them as of
August 1, 1933, in cities and places having a population of less than
15,000, provided that this shall not require a wage for these employees
in excess of twenty-five (25) cents per hour.
SEc. 4. WCith respect to employees regularly emnployedl as ticket-
sellers, doormen, cleaners, matrons, watchmlen, attendants, porters,
and office help, such employees shall receive not less than thirty (30)
cents per hour in cities and places having a population of more than
15,000 and less than 500,000, and not. less than thirty-fivre (35) cents
per hour in cities and towns having a population of more than
500,000.
SEc. 5. With respect to employees regularly employed as ushers, in
cities and places having a population over 15,000, such employees
shall receive a wage of not less than twenty-fiv-e (25) cents per hour.
SEc. 6. (a) Employees associated with organizations of or per-
forming the duties of bill-posters, carpenters, electr~icall workers,
engineers, firemen, motixon-pictu re ma ch ine operators, oilers. painters,
theatrical stage employees, theatrical wardrobe attendants, or other
skilled mechanics andi artisans, who are directly and regularly9 em-
ployed by the Exhibitors, shall receive not less tlhan the mi l nimumI
wage and worki no longer than the maximum number of hours per
week wFhich were in force as of August 23, 1933, as the prevailing
scale of wages and maximnum number of hours of labor by oirganiza-
t~ions of any of such employees a.ffillintedl with the Amnerican F~edera-
tion of Labor with respect to their respective type of w~ork in a
particular class of theatre or theatres in a particular location in a
particular community, and such scales and hours of labor with respect
to any of such employees in such community shall be: deemed to be,
and hereby are declared to be, the minimum scale of wages and
maximum number of hours within respect to all1 of such employees in
such communities in such class of theatre or theatres.
(b) In the event, however, that there exist in the particular com-
miunity organizations of such employees above mentioned mnemn-
bers of which were directly anrd regularly employed by the Exhibit~or
or Exhibitors on August 23, 1933, and which organizations are
affliated as above set forth, and (1) no prevailing scale of wages
and maximum number of hours for such employees exist in such
conununity with respect to such employees, or (2) any dispute should.
arise as to what is a minimum scale of wages or the maximum
number of hours of Inbor with respect to any of such employees for
a particular class of theater or theaters in any particular community
then and in either of those events suchi disputes shall be determined
as follows:
(1) If the question at issue arises with An organization of such
employees affliated with the American Federation of Labor, then
a representative appointed by the National President of such affili-
ated organization, together with a representative appointed by the
Exhibitors, shall examine into the facts and determine t~he existing






232

minimum scale of wages and maximum number of holirs of labor
for such class of theater or theaters in such particular locality, and
in the event they cannot agree upon the same, they shall mutually
designate an impartial third person who shall be empowered to
sit with such representatives, review the facts and finally determine
such dispute, with the proviso, however, that in the event such repre-
sentatives cannot mutually agree upon such third person, then the
Administrator shall designate such third person; or
(2) If the question at issue arises with unorganized employees or
with an organization of such employees not affiliated with the Ameri-
can Federation of Labor, and if in said community there exist mem-
bers of such affiliated organization directly and regularly employed
by an Exhibitor or Exhibitors, then a representative of such unorL
ganized employees, or, as the case may be, a representative appointed
byT the President of such unaffiliated organization or both, together
with a representative appointed by the National President of such
affiliated organization above referred to, together with a representa-
tive appointed by the Exhibitors, shall examine into the facts and
unanimously determine the existing scale of wages and maximum
number of hours of I'abor for such class of theatre or theatres in
such particular community, and in the event they cannot unani-
mously agree upon the same, they shall mutually designate an im-
partial person who shall be empowered to sit with such representa-
tit~es, review the facts, and finally determine such dispute, with the
proviso, however, that in the event such representatives cannot mu-
tually agree upon such impartial person, then the Administrator
shall designate such impartial person; or I*
(3) If t~he question at issue arises with unorganized employees ot*
with an organization of such employees not affiliated with the Amer-
ican Federation of Labor and not subject to the foregoing provisions
of subparagraphs (1) and (2) of paragraph (b) hereof, then a rep-
resentative of such unorganized employees, or, as the case may be,
a representative of the President of such unaffiliated organization, or
both together, with a representative appointed by t~he Exhibitors,
shall examine into the facts and determine the existing minimum
scale of wages and maximum hours of labor, for such class of theatre
or theatres in such particular locality, andl in the event they can-
not agree upon the same, they shall mutually designate an impartial
person who shall be empowered to sit with such representatives, re-
view the facts and finally determine such dispute, with the proviso,,
however, that in the event such representatives cannot mutually agree
upon such impartial person, then the Administrator shall designate
such impartial person.
(c) Pending the determination of any such dispute, the rate of
wages then paid by the Exhibitor in such theatre or theatres in such
-community and the maximum number of hours then in force(i
not more th an the hours provided for in this Code) shall not b
changed so as to decrease wages or increase hours.
(d) In order to effectuate the foregoing provisions of this Sec-
tion 6 hereof, and pending the determination of any dispute as above
specified, the employees herein embraced and provided for agree that
they shall not strike, and the Exhibitors agree that they shall not
lock out such employees.






233


SECI. 7. IH DO event Shall the duties of any of t.he employees here-
inabove specified in Section 6 (a) directly and regularly employed
by the Exhibitors as of August 23, 1933, be increased so as to de-
crease the number of such employees employed in any theatre or
theatres in any community, except by mutual consent.
SEO. 8. WTith respect to any employee nlot hereinbefore provided
for such employee when directly and regularly employed by the
Exhibitors shall be paid not less than forty (40) cents per hour.
SEC. 9. By reason of the professional character of their employ-
ment, the minimum wage and maximtunm hours of employment of
employees performing the duties of musicians shall as heretofore
be established by prevailing labor agreements, understandings, or
practices.
SEO. 10. With respect to disputes arising between employees and
employers in the Exhibition branch of the M~otion Pict~ure Industry,
the parties pledge themselves to attempt to arbitrate all such
disputes.
SEO. 11. The Administrator after such notice and hearing as he
shall prescribe may revise or modify anydtemnio fayds
pute pursuant to Se~ction 6 of Part 1 of ;; Divismion Ci of this AriceIV
Part R. Actor Employees in TFaude~i~lle anld Presentation Miotion-
Pictur~e Theat~res.
SECTION 1. Definzitione.--(a) Presentation and vaudeville shall in-
clude both permanent and traveling companies of artists playing
presentation and vaudeville houses, but is not intended to include:
amateur shows! "' rep ") shows, tab "' shows, tent ") showss' wa on "I
shows, "' truck "' shows, "' medicine shows, "' show-boat or bjur-
lesque ", as these terms are understood in the theatre.
(b) A "' traveling company, as used in th~is Code, means a com-
pany which moves from theatre to theatre irrespective of locality.
SEc. 2. Auditions--(a) Prin~cipals.--It shall be an unfair trade
practice for any Exhibitor or independent contractor under th~e guise
of public audition to break in, try out, or to require a performer to
render service for less than the minimlum salary established by this
Code. This shall not prohibit, however, the appearance or participa-
tion of any performer in benefit performances whichh have been
app~rov-ed by the performer or by any bona fide orannization of the
performer's own choosing.
(b) C:horus.--It shall be an unfair trade practice for any manager
or independent contractor, under the guise of a public audition,
break-in, or try-out, to require the chorus to render services for less
than the minimum salary established by this Code. This shall not
prohibit, however, the appearance of thle chorus or participation in
benefit per~formances which have been approved byv the chorus or
any bona fide organization of the chorus' own choosing.
SEC. 3. R88 alCUT8-8-( a) Principals.--Rehea rsal period for prin-
cipals shall be limited to four weeks, and they shall be guaranteed
twfo consecutive weeks' compensation for employment for said four
weeks of rehearsals, which shall imlmediately follow the rehearsal
period. In the event that any rehearsal over four weeks is required,
there shall be compensation for an additional consecutive week's
playing time guaranteed for each week;'s rehearsal. This shall not
apply, however, t~o principals owming their own acts.




_~~~~~~ _~~~_~~_~_~~~__~~~_ii

234

(b) Ch~orus.--No exhibitor or independent contractor L51hall require
for an engagement of only one week any chorus person to rehearse
in excess of 6ive (5) days, nor for an engagement of two or more
weeks to rehearse in excess of two (2) weeks. Any- such engage-
ment shall follow immediately such respective rehearsal periods. TIhe
chorus shall not be required to rehearse for more than forty (40)
hours a week and rehearsal shall be considered to be continuous
from the time the chorus is called on the first day of rehearsal until
the opening day. For each additional week of rehearsal there shall
be compensation for an additional week's consecutive em~ployment~.
SEc. 4. MadirnuwrsHours dm Mnives"*rittenages--(a) Principals.--
Owing to the peculiar nature of the stage presentation and vaudeville
business and the unique conditions prevailing therein, the necessary
policy and variations in the operation of such~ theatres, the changing
nature of the entertainment, and the fact that such entertainment is
of a character requiring the services of artists of unique and distinc-
tive ability who cannot be replaced, it is recognized that it is im-
possible to fix the maximuml hours per week of artists appearing in
such theatres.
(1) For performers with more than two ryeas theatrica expe-0
rience, there shall be a minimum wage of frydlas(4.0
weekly net.
(2) For performers with less than two years' theatrical experience,
there shall be a minimum wage of twenty-five dollars ($25.00) weekly
net.
(8) The minimum wage of performers employed on a per diem
basis shall be seven dollars and fifty cents ($7.50) per day net.
(b) Chors~.--No singing or dancing chorus person shall be re-
luired to work more than forty (40) hours in any week, and there
s all be one day out of every seven during which the chorus shall
be released from work with pay. Working time shall include the
entire time of a performance or presentation in which the chorus
appears in one or more numbers as an integral part of the presenta-
tron, and all rehearsal time excluding dressing and undressing time.
No chorus person shall be required to report at a theatre before
9 o'clock in the morning.
On the day a chorus person is released with pay, such chorus person
shall not be required to rehearse or report to the theatre or perform
any service. This provision for a five day shall not apply to travel-
ing companies.
(1) There shall be a minimum wage of thirty dollars ($30.00)
per week in any De Luxe Theatre.
(2) There shall be a minimum wage of thirty-five dollars ($35.00)
per week in traveling companies.
(8) There shall be a minimum wage of twenty-five dollars ($25.00)
per week in other than De Luxe Theatres.
(4) Wherever a theater augments the chorus by employing addi-
tiohnal chorus persons, such additional chorus persons shall not re-
hearse more than five (5) days.
(5) It shall be an unfair trade practice for any Exhibitor or
independent contractor to engage any chorus person under any
agreement which would reduce the net salary below the minimum
wage through the payment of any fee or conunission to any agency






235


(whether such fee is paid by the Exhibitor or independent con-
tractor or by the chorus), or by any other form of deduction.
(6) After the first two weeks of consecutive employment, if a
lay-off is necessary, the Exhibitor or independent contractor shall
py each chorus person not less than three dollars ($3.00) per day
reach day of lay-off. In connection with a traveling unit after
the first two weeks of consecutive emlployment, if lay-off is caused
on account of traveling, the Exhibitor or independent contractor
shall be allowed two days' traveling without pay for each four
weeks of employment WVest of the Rockies, and one dayv's traveling
without pay for each four wFeeks of employment East of t~he Rockiies.
(7) Wherreer on August 23, 1933, any theatre paid a rate to
chorus persons in excess of the minimum wages or employed chorus
persons for a number of hours per week of labor less than t~he
maximum hours, said higher wage and lesser number of hours shall
be deemed to be, and are herebyv declared to be, the minimum scale
of wages and maximum hours of labor with respect to such theatres
in this Section of t~he Code.
SEO. 5i. General Provisions.--(a) If in any city or place where bly
custom Sunday performances by living actors, or the performance
of particular classes of acts, are not given, no performer or chorus
person engaged to work in such~ city or place shall be required to
perform or give performances of such particular class of act in such
city or in any other place on the Sunday of the week for which such
performer or chorus person was engaged to render services in such
city or place.
(b) Wherever any unit, traveling company or artist is required
to give more than the regular number of performances established in
the theatres in which they appear, said unit, traveling company or
artist, all artists and chorus persons shall be paid APr said extra
performances pro rata.
SEc. 6. Cho~u.S TranZSPO~rtaltio n..- (a ) Tra nspor~taft~ion o f the ch oru s
when required to travel, including transportation from point of
organization and back, includinng sleepers, shall be paid by the em-
ployer whether Exhibitor or independent contractor.
(b) If individual notice of contract termination is given, the
chorus shall only be paid in cash the amount of the cost of trans-
portation and sleeper of the chorus and baggage back to the point of
origin whether the chorus returns immediately or not.
SiEC. 7. 'F~ardP~Obe-(n) Prin~cipals.--The ExFhibitor or independent
contractor shall furnish to everyv artist in a presentation unit or
traveling company (not including what is commonly known as a
vaudeville act) and receiving less than fifty dollars ($50.00) per
week, without charge, all hats, costumes, wigs, shoes, tights, and
stockings, and other necessary stage wardrobe, excepting street
clothes.
(b) Choruew.--The Exhibitor or independent contractor shall fur-
nish the chorus, without charge, with all hats, costumes, wigs, shoes,
tights, and stockings and other necessary stage w~ardrobe.
SEC. 8. Arbitration.--(a) Arbitration of all disputes under this
Section of this ARTICLE of the Code shall1 be in accordance with
the arbitration provisions of this Code as hereinafter generally pro-
vi ded.






236


SEc. 9. Child Labor.-(a) On or after the effective date oft this
Code, no person under sixteen (16) years of age shall be employed
as a principal or chorus person in connection with; the EXHIBITION
of motion pictures, provided, however, where a State law poie
a higher minimum age, no person under the age specified by oidsaid
State law shall be employed in that State, and provided further,
however, where a role or roles are to be filled or appearances made
by a child or children, an Exhibitor or independent contractor
may utilize the services of such child or children upon his compliance
with the provisions of State laws appertaining thereto.
SEc. 10. The Code Authority may receive complaints with respect
to alleged violations by an independent contractor of any of the
foregoing Sections of this PART 2 and may after notice and hear-
ing and with the approval of the Administrator prescribe rules and
regulat.ions governing the relations between Exhibitors and inde-
pendent contractors guilty of any such violations.
ARTICLE V-UNFram PRACTICES

A. GENERAL

Part 1. The defamation of competitors by falsely imputing to
them dishonorable conduct, inability to perform contracts, question-
able credit standing, or by other false representations or by the
false disparagement of the grade or quality of their motion pictures
or theatres, shall be dleemied to be an unfair trade practice.
Part f. The publishing or circularizing of threats or suits or anly
other legal proceedings not in good faith, with the tendency or effect
of harrassing competitors or intimidating their customers, shall be
deemed to be an unfair trade practice.
Par~t 3. Securing confidential information concerning the business
of a competitor by a false or misleading statement or representation,
by a false impersonation of one in authority, by bribery, or by any
other unfair method, shall be deemed to be an unfair trade practice.
Part 4. To avoid the payment of sums unreasonably in excess of
the fair value of personal services which results in unfair and
destructive competition, the Code Authority shall have power, with
th~e approval of the Administrator, to investigate whether in any
ense any employer in the motion-picture industry has agreed to pay
an unreasonably excessive inducement to any person to enter into the
employ of such employer. If the Code Authority finds that such
employer has done so, the Code Atuthlority shall have the power, with
the approval of the Administrator, to imlpose an assessment against
such employer in the amount of the unreasonable excess payment
to such person, not, however, to exceed the sum of Ten Thousand
Dollars ($10,000.00), and to make public its findings, but nothing
in this PART shall in any manner impair the validiity or enforce-
ability of such agreement of employment. All such assessments shall
be paid to the Code Authority for use by it in the Administration of
its functions.
B. PRODUCERS

Part 1. It shall be an unfair trade practice for any Producer to
aid, abet, or assist in the voluntary release or dismissal of any author,






237


dramatist, or actor employed in renderings his exuclusive services In
connection with the production of a "' legitimate "' draman or musical
comedy for the purposes of securing the services of such author,
dramatist, or actor.
Part 9. It shall be an unfair trade practice for a number of
Producers who, in the usual and ordinary course of business, rent
their respective studios or studio facilities to Producers (other than
their affliated companies), to conspire, agree, or take joint action
to prevent any responsible Producer or Producers from renting suchz
studios or studio facilities.
Part 3. It shall be an unfair trade practice for a Producer to
knowinglyemploy as an extra any member of the immediate
family of an employee or any person who is not obliged to depend
upon "extra "work as a means of livelihood, unless the exigenlcies
of production require an exception to be madte.
Part $. SECTION 1. No Producer, directly or indirectly, shall trans-
act any business relat.inge to thle production of motion pictures with
any agent who under the procedure hereinafter set forth shall be
found by the Agency Committee:
(a) to have given, offered, or promised to any employee of any
Producer any gift or gratuity to influence th~e action of such em-
ployee in relation to the business of such Producer;
(b) to have alienated or enticed, or to have attempted to alienate
or entice, any employee under written contract of employment, from
such employment, or to have induced or advised without justification
any employee to do any act or thing in conflict with such employee's
obligation to perform in good faith any contract of employment,
whether oral or written;
(c) knowingly to have made any materially fa.1se representation
to any Producer in negotiations with such Producer for or affecting
the employment or contemplated employment of any person rep-
resented by such agent;
(d) to have violated or evaded or to have attemnptel t~o violate
or evade, directly or indirectly, any of the provisions of Parts 4t or
5 of this Article V.
(e) to have failed or refused to have registered as an agent. in
the event that such registration is required as provided for in See-
tion 3 of this Part, or to have tra~nsacted business as an agent after
his registration shall have been revoked, cancelled, or suspended.
SEC'. 2. The Agency Committee shall consist of ten (10) members,
five (5) of w~hom shall be Producers or Producers' representatives
named by the Code Authority, and the other five (5) shall consist
of one agent, one actor, one writer, one director, and one technician,
who shall be selected by the Administrator from nominations as to
each class named, respectively, by agents, actors, writers, directors,
and technicians, in such equitable manner as may be prescribed by
the Adm~inistrator.
SEC. 3. In Order to effectuate this Part, the Agency Commnittee may
recommend to the Administrator uniform terms andi conditions for
and an appropriate procedure for the registration of all agents wijth
whom Producers may transact business relatingr to the production of
motion pictures, and for the suspension, reoca'tion, or cancellation of
any such registration and appropriate rules and regulations affecting
the agents as provided for herein. Such recommendations of the






238


Agency Committee, together with the recommendations of the indi-
vidual members thereof, shall be submitted in writing to the Admin-
istrator, who after such notice and hearing as he may prescribe, may
approve or modify such recommendations. Upon approval by the
Administrator, such recommendations shall have full force and effect
as provisions of this Code. No agent shall be deprived of the right
of registration without affording such agent a full and fair oppor-
tunity to be heard, and without the approval of the Administrator.
Should it at any time be determined to provide for the registration
of agents as hereinabove set forth, then all persons regularly trans-
acting business as agents at such time shall be entitled to registration
as a matter of course, provided application is made to the Agency
Committee within thirty (30) days thereafter.
SEO. 4. The Agency Committee may, after due notice and hearing,
and with the approval of the Admmnistrator, set up rules of fair
practice governing relations between Producers and agents, writers,
actors, directors, and technicians.
SEc. 5. The Agency Committee shall make findings of fact concern-
mng any matter coming before it pursuant to the provisions of this
Part and shall make such recommendations to the A~dministrator as it
may deem proper if the Committee is unanimous, otherwise separate
recommendations may be submitted, together with a report that the
Committee has disagreed. No hearingr or proceeding shall be con-
ducted without due notice and a full and fair opportunity to all
interested parties to appear and be heard. A complete transcript of
all testimony and arguments shall be made and certified to the Ad-
ministrator, together with the recommendations of the members of
the Committee. The Administrator shall approve, reject, or modify
such recommendations, or any of them, and may conduct such fur-
ther investigations and hearings as to him may seem necessary or
advisable. The order of the Administrator shall be final.
SEC. 6. The Agency Committee, subject to the approval of the
Administrator, shall have authority to require all Producers to fur-
nish such information as may be desired to effectuate the provisions
of this Part.
SEc. 7. The Agency Committee shall have full power and authority
to prescribe reasonable rules of procedure for determining all matters
of dispute or controversy which may properly arise before such
Committee in connection with this Part.
SEC. 8. The term "C agent as used herein shall apply to any per-
son (including firms, corporations, or associations) who, directly or
indirectly, for a fee or other valuable consideration, procures, prom-
ises, or undertakes to procure employment for any person for or mn
connection with the production of motion pictures.
SEC. 9. 1 le prOvisions of Article II, Section 7, of this Code shall
not supersede the operation of this Part 4, and the following Part
4 (A).
SEC. 10. It shall be an unfair trade practice for any Producer, or
any employee of a Producer, directly or indirectly, to engage in,
carry on, or mn any way be financially interested in or connected with
the business of an agent as herein defined, without making known
suhe efact to dthe, Agency Committee within twenty (20) days from
theeffctie ate orifsuch interest is acquired subsequent to the






239


effective date, then within ten (10) days after the acquisition of such
interest. The Agency Committee shall require such public disc~losulre
to be made of such interest as it may deem advrisable; and the Agency
Committee may make such further rules in connection withi the sub-
ject matter of this Section as it sees fit, subject to t~he approval of
the Administrator.
Part 4 (A).--(a) Should the Administrator determine at any
time upon a fair showing, after notice, that a set of fair practices
should be adopted governing relations between Producers and any
one of the following classes: writers, directors, technicians, actors,
and agents, a special committee shall be appointed for that purpose.
The Producers and the class interested in such fair practices in each
instance shall be entitled to equal representation on such committee.
(b) The Committee members shall be appointed in the manner,
and its proceedlingrs and those of the Administrator shall be the same,
as above provided in the case of the Agency Committee.
(c) At. the same time that the findings or report of the Commlittee
shall be sent to the Administrator, the same shall be made public
inr suc mannerO as aybe determined by the Administrator.
Part5. ECTIN 1 90Producer, directly or indirectly, secretly or
otherwise, shall--
(a) Entice or alienate from his employment any employee of any
other Producer or induce or advise any such employee to do any-
thing in conflict or inconsistent with such employee's obligation to
perform in good faith any contract of employment.
(b) Foment dissension, discord, or strife between any employee of
any other Producer and his employer with the effect of securing
the employee's release from employment or a change in the terms
of any contract under which the employee is engaged or of causing
the employee to be or become dissatisfied with his subsisting contract.
(c) In any manner whatsoever negotiate with or make any offer
for or to any employee under written contract t~o any other Producer
prior to the last thirty (30) days of the term of the contract of
employment., regardless of the compensation.
SEO. 2. All production employees rendering services of an artistic,
creative, technical, or executive nature, for the purpose of this Part,
shall be classified as follows:
(a) Employees not under written contract who are employed at
not less than $250.00 per week or $2,500.00 per p~icture. uiv
(b) Employees under written contract, fraproicuieo
options, if any, of less than one year, whose compensation is not le~s
than $2.50.00 per week or $2,500.00 per picture
(c) Employees under written contract for the period of at. least
one year, or at least three pictures, inclusive of options, if any,
whose compensation is not less than $250.00 per wFeek (exclusive of
lay-off periods) or $2,500.00 per picture.
The term contract as used in subdivisions (b) and (c) shall
be deemed to mean and include not only any subsisting contract
with any Producer, but also any prior contract with such Prodlucer
or with any parent, subsidiary, or predecessor corporation of such
Producer, provided that the employment thereunder has been or
may be continuous.






240


(d) Nothing hereinbefore in subdivision (c) of Section 1 or in
subdivisions (a), (b), and (c) of this Section contained shall apply
to so-called free lance players, writers, directors, or other em-
ployees who are engaged to render services of an artistic nature in
connection with one or two pictures only, unless the actual period of
emplymet ofanysuch employee is intended to or shall cover a
minimum period of n er
SEc. 3. Should any Producer make any offer for the services of
any employee of any other Producer, and such employee is classified,
within either subdivision (a), (b), (c) or (d) of Section 2, and regis-
tered as hereinafter in Section 6 provided, then on the same day
such offer is made, the Producer making such offer shall notify the
e~mploying Producer in writing that such offer has been made, and
shall state the full and complete terms and conditions thereof, in-
cluding particularly t~he compensation, the proposed period of em-
ployment, and any additional special terms. Simultaneously, a
copy of said notice shall be delivered to the Registrar hereinafter
provided for. The employing Producer thereupon shall be afforded
a reasonable opportunity, not exceeding three (3) days, to be deter-
mined by the Registrar as hereinafter in Section 6 provided, within
which time to negotiate for and contract with such employee for his
continued services, on such terms as may be mutually acceptable, but
the employee in every instance shall have the full and independent
choice as to which offer he will accept. Any offer made by any Pro-
ducerP and~ reported ton t.he employing Producer shall be conditional
upon the right of the employing Producer as hereinabove provided,
and shall be a firm offer not to expire. until at least twenty-four (24)
hours after the period permitted the employing Producer to nego-
tiate ats herein provided for.
The notice hereinabove provided for need be given, however, with
reference to employees classified in subdivisions (b) and (c) of Sec-
tion 2, only upon the condition that prior to the last thirty (30)
day period of employment the employing Producer shall have made
an offer in good faith to such employee fodr a renewal or extension of
his contract of employment and shall have communicated that fact
to the Registrar.
SEc. 4. Should any Producer desire to continue, renew, or extend
the period of employment of any employee classified within sub-
division (c) of Section 2 hereof, and if he shall have evidenced such
desire by making an offer in good faith to such employee prior to the
last thirty (30) day period of his employment and such offer be
rejected, and provided the compensation of such employee last paid
by the employing Producer was at least $500.00 per week or $5,000.00
per picture, such Producer nevertheless shall be entitled to notice of
offers which may be made to such employee by other Producers,
during the period hereinafter provided, following the termination of
such employment. Should any other Producer make any offer for
the services of any such employee within such period, then on the
same day that such offer is made such Producer shall notify the
former empyloying Producer and the Registrar in likre manner as is
provided for in Section 3. The same procedure, rules, and condi-
tions shall govern with reference to offers made under this Section as
are provided for in Section 3, to the end that:






241


(a) the former employing Producer shall be entitled to a reason-
a~ble period not, exceeding three (3) days within which to negotiate
and contract for the services of the employee in question ;
(b) the offer of the second Producer shall continue as a firm offer
for twenty-four (24) hours beyond the period referred to in
subdivision (a) ; and
(c) the employee at all times shall have a free and independent
choice as to which offer he will accept.
The period during which the first employing Producer shall be
entitled to notice of offers made by other Producers, as hereinabove
provided for, shall be three (3) months from the date of termina-
tion of the first employment in all cases where the compensation
for the employee in connection with the former employment was at
the rate of less than $1,000 per week (exclusive of lay-off periods),
or if the employee was employed on a picture basis, less than $10,000
per picture. In all other cases where the compensation was equal to
or mn excess of the above amounts, thle period shall be six (6)
months.
SEc. 5. No Producer, Distributor, or Exhibitor shall violate or
aid or abet in the violation of this Part. It shall be an unfair trade
practice for any Producer to use coercion to prevent offers being
made any employee by other Producers.
SEc. 6. The Code Authority shall appoint a standing committee,
which shall have full power and authority to determine the
good faith of any offer made by the employing Producer, so as to
entitle such ProdutCer to notice of subsequent offers, as hereinabove
provided for, and to determine whether the period within which
such notice must be given should be for three (3) months or six (6)
months. The Registrar shall be appointed and removed by said
standing committee at will, and any act or decision of the Registrar
shall be subject to review, reversal, or modification by said com-
miittee or by the Code Authority on its own motion or on appli-
cation of any interested party.
The Registrar shall provide an appropriate method whereby all
Producers may ascertain in each instance when, and t~he period dur-
ing which, notices of offers are to be transmitted to the employing or
former employing Prodlucer. Said Registrar shall also prescribe the
procedure so as to prevent any employmng or any former employing
Producer from any unreasonable delay or from withholding any
action or decision permitted under the provisions hereof, to the end
that the immediate employment of any persons with whom any other
Producer desires t~o contract shall not be unreasonably delayedl or
prevented. In such connection the Registrar shall have power in
any instance to design ate a reasonable period, in no event to exceed
three (3) days, withmn which the second Producer shall be precluded
from executing any proposed contract with the employee or former
employee of the first employing or former employing Producer.
Notwithstanding anything contained in this Part to the contrary,
the provisions of this Pa~rt shall apply only to employees whose names
are registered with the Registrar by the emnployingr Producer, and
the right of registration or continued registration may be determined
in any instance by the standing committee either upon its own motion
or on application of any person interested, including the employee





242


affected. In the event of the termination for any reasons whatsoever
of the employment of any person whose name is registered, the for-
mer employing Producer shall notify the Registrar in writing forth-
with of such termination. Any Producer may withdraw from regis-
tration the name of any employee or by written notice served on the
Registrar may waive the right to be notified of offers made to any
employee by any other Producer, but he shall not refrain from regis-
tering~ the name of any employee, withdraw any name so registered
or waive any such right to notice by virtue of any agreement to that
effect with t~he employee. The Registrar shall provide an atppro-
priate method for notifying all Producers promptly of aUl regist~ra-
tions, withdrawal of registrations, terminations of employment and
waivers.
SEc. 7I. If t~he Code Authority, or any committee appointed by it
for that purpose, after notice and hearing shall find that any em-
ployee of any Producer has refused without just cause to render
services under any contract of employment, the Code Authority shall
have full power and authority, with the approval of the Adminis-
trator, to order all Producers to refrain from employing any such
person in connection with the business of producing motion pictures
for such period of time as may be desig~nated by the Code Authority
and it shall be an unfair trade practice for any Producer to employ
such person in violation of such order, or for any Distributor or
Exhibitor, respectively, to distribute or exhibit any picture pro-
duced during the period prescribed by the Code Authority by or
with the aid of such person. Such hearing shall be conducted only
upon due notice. A full and fair opportunity shall be afforded to
all interested parties to appear. A complete transcript of all testi-
many and arguments, together with the findings and order of the
Code Authority, shall be made and certified to the Administrator,
who may approve, reject, or modify such order, and in such connec-
tion conduct such further investigations and hearings as to him may
seem necessary or advisable. The order of the Administrator shall
be final.
SEC. 8. If any Producer deliberately, willfully, or persistently
violates any of thle provisions of this Part and the Code Authority
so finds, an~d such finding is upheld by the Administrator, the Code
Authority, with the approval of the Administrator, shall have power
to impose such restrictions, prohibitions, or conditions as it may deem
proper upon the distribution or exhibition of motion pictures pro-
duced by anyv such offending Producer. Due notice of the ruling of
the Code Aut~hority, as approved by the Administrator, shall be pub-
lished in such manner as the Code Auth~ority prescribes.
Part 6. (a) No cartoon Producer shall employ any person during
such time as he is employed full time by another.
(b) No cartoon Producer shall make any offer directly or indi-
r~ectly of atny money inducement or advantage of any kind to any
employee of any other cartoon Producer in an effort to entice, per-
suade, or induce such employee to leave or become dissatisfied or to
breach any contract covering his employment.
(c) No cartoon Producer shall adapt a cartoon character of an-
other in such manner that the use of the adapted character shall con-
stitute an appropriation by him of the goodwill of the creator.






243



Part 1. Where any contract granting the motion-picture rights
in any dramatic or dramatico-musical work specifies a date prior to
which no motion picture based uponi such work; may be publicly
exhibited, it shall be deemed to be an unfair trade practice for any
Producer or Distributor to permit the pubic exhibition of ruch
motion picture prior to such date.
Part R. (a) It shall be deemed to be an unfair trade practices
for any Producer or Distributor, by any of it~s employees or through
other persons who have a direct or mndirect interest, whliether financial
or otherwise, in any such Producer or Distributor, to knowingly
and intentionally directly or indirectly interfere with existing rela-
tions between an outside or associated Producer and a Producer or
Distributor, or to do anything to alienate or entice anly such outside
or associated Producer away from a Producer or Distributor, or to
do anything which would tend to create discord or strife between
such outside or associated Producer and a Producer or Distributor,
or foment dissension between them, for the purpose of inducing such
outside or associated Producer to breach or attempt to breach any
existing contracts between it and Producer or Dist~ributor, or to
secure a change in the terms and conditions of any existing contract
between any such outside associated Producer and a Producer or
Dist ri butor.
(b) To effectuate the foregoing, no Producer or Distributor shall
negotiate with or make any offer for or to any such outside or asso-
ciated Producer at any time prior to sixty (60) days before the termi-
nation of any existing agreement between such outside or associated
Producer and any other Producer or Distributor, or not prior to
sixty (60) days before the date when such outside or associated
Producer shall fulfill its delivery commitment to the Producer or
Distributor with whom it has contractual obligations, whichever
date is earlier.
D. DISTRIBUTORS

Part 1. No Distributor shall threaten or coerce or intimlidate any
Exhibitor to enter into any contract for the exhibition of motion
pictures, or to pay higher film rentals by the commission of any
overt act evidencing an intention t~o build or otherwise acquire a
motion picture theater for operation in competition with such Ex-
hibitor, but nothing in this ARTICLE shall in any way abridge
the right of a Produ~cer or Distributor in good faith to build or
otherwise acquire a motion picture theater in any location.
Parpt 9. No Distributor's employee shall use his position with the
Distributor to interfere with the licensing of motion pictures by an
Exhibitor operating a theater in competition with a theater in which
such employee may have a direct or indirect interest? provided, how-
ever, that an employee of a Distr~ibutor shall not be deemed to have
an interest in any theater affiliated with su~chi Distributor.
Part 3. (a) No Distributor shall substitute for any feature mo-
tion picture described in the contract ther~efor as that of a named
star or stars, or named director or named well-known author, bookr,
or play one of any other star or stars, director, author, book, or play,





244


nor shall s-uch Distributor substitute any other feature motion pic-
ture for onie w-hich in the contract theref~or is designated no sub-
stitute "; and no Exhibitor shall be required to accept any such
substitute motion picture.
(b) Nothing in this ARTICLE contained shall be interpreted to
prohibit any D~istributor from changing the title of any motion pie-
ture contracted for, from making changes, alterations, and adapta-
tions of any story, book, or play upon which it is based and from
substituting for any such story, book, or play another story, book, or
play, or from changing the director, cast, or any member thereof
of any such motion picture, except as hereinabove specifically
prohibited.
(c) If for any such author, book, or play there is substituted an-
other author, book, or play, notice of such substitution shall be given
by a paid advertisement of not less than one quarter page in at least
one issue of a national trade publication before the release date of
the motion picture in which such substitution has been made.
Part 4. (a) It shall be an unfair practice for any Distributor to
license the exhibition of its motion pictures for exhibition by any non-
theatrical account contrary to any determination, restriction, or limi-
tation by a Local Grievance Board where such exhibition shall be
determined by such Grievance Board provided for in this Code to be
unfair to an "established motion-picture theatre.
(b) Nothing in this PART shall be interpreted to prohibit the
licensing of motion pictures for exhibition at army posts, or camps,
or on board ships of the United States Navy or ships engaged in
carrying passengers to foreign or domestic ports or at educational
or religious institutions or at institutions housing "' shut-ins ", such
as prisons, hospitals, orp~hanages, etc.
Part 5. 'No Distributor shall require as a condition of entering into
a contract for the licensing of the exhibition of feature motion pic-
tures that the Exhibitor contract also for the licensing of the exhibi-
tion of a greater number of short subjects (excepting news reels), in
proportion to the total number of short subjects required by such
Exhibitor, than the proportion of the feature pictures for whiich a
contract is negotiated bears to the total number of feature pictures
required by the Exhibitor.
Part 6. No Distributor shall divulge or authorize or k-nowingly
permit to be divulged by any employee or checker any information
received in the checking of the receipts of its motion pictures, except
that such information may be divulged in any arbitration or griev-
ance proceeding or litigation concerning a controversy and for any
Government or Code Authority report.
Part 7. No Distributor shall convey or transfer its assets for the
purpose! of avoiding the delivery to any Exhibitor of any feature
motion picture licensed for exhibition by such Exhibitor.
Part 8. No Distributor shall refuse to make a fair adjustment of
the license fees for the exhibition rights of a number of pictures
licensed in a group for a stated average sum per picture and so stated
in the license agreement, if the total number of pictures so licensed
by any Exhibitor are not delivered by such Distributor, provided
such Exhibit.0r shall have fully and completely performed aHl the
terms and conditions of such license on the part of the Exhibitor to






245


be performed. Any dispute or controversy concerning any such ad-
justment shall be determined by a Local Gr1ievance Boa~rd provided
for in this Code.
Par~t 9. (a) No Distributor shall require any specific dlay or days~
of the week for the. exhibition of specified pictures or class of pic-
tures unless specifically provided for in the Exhibitor's contract th~ere-
for and in no event if the license fee therefore is a fixed sum only.
(b) Where under an exhibition contract which provides that the
rental to be paid by the Exhibit~or for any feature motion picture
specified therein shall be determined in whole or in part upon a p7er-
centage banSis, and that said picture shall be played by the Exhibitor
upon a designed da yh or days of the week andl the Exhibitor seeks
to e rlivedfro te obligation to exhibit such motion picture
upon such designated day or days for the reason only that the
subject and character of the motion picture so designated are unsuit-
able for exhibition at the Exhibitor's theatre on such dlay or days,
the claim of the Exhibitor shall be determined by the Local Griev-
ance Board provided for by this Code, and the Distributor, if suchi
Local Board so determines, shall relieve the Exhibitor from the
obligation to play th~e motion picture upon the day or days desig-
nated by the Distributor; provided that the Exhibitor mak~es such
claim within three (3) days after receipt of t~he notice of avail-
ability of such feature picture. In such cases the said Local Board
shall proceed to determine the matter upon fortyr-eig~t. (48) hours'
notice if the Distributor so desires.
(c) If the said Local Board shall sustain thle claims of the
Exhibitor :
(1) the Dist~ributor shall have the right to designate for the sameo
day or dates another motion picture licensed upon a percentage basis
upon the same or similar terms as the motion picture in questionn, if
there be one licensed; and to designate the motion picture objected
to for a later date or dates but upon another day or other dlays of
the week; and (2) the award of the saidl Local Board shall not be
deemed t~o apply to any other theatre in the same way' or any other
location.
(d) W~here because of a proceeding before a Local Grievance
Board, or because of an awards of such Local Boar~d, it shall be im~-
practical to serve subsequent-run Exhibitors in comnpliance with
any notice of availability or confirmed play dates given any such
subsequent-run Exhibitors, the Distributors shall havet the right to
change such play dates.
Part. 10. No Distributor shall refuse to deliver to any Ex~hibitor
any feature motion picture licensed under an exhibition contract
therefore because of such Exhibitor's default in the performance of
any exhibition contr.rat. licensing the exhibition of short subjects of
such Distributor, or z!i~ce vLersa, provided such Exhibitor has agreed
to arbitrate all claims and controversies arising under all existing
Opt~ional itanda~nrd License Agareements between them.
Parlt 11. (a) If any Exhibitor has contmected to exhibit more than
fifty percent (50%) of the total number of motion pictures an-
nounced for release during any given season by a Distrib~utor and
such Distributor shall during such season generally release any
feature motion picture in addition to ther number so announced,






246


such Distributor shall first offer to the Exhibiter for license such
additional motion pictures for exhibition at the Exhibitor's theatre,
provided that at the time of such offer such Exhibitor shall have
duly performed all the terms and conditions of all existing exhibition
contracts between such Exhibitor and Distributor and is not in
default thereunder.
(b) In cases where two Exhibitors have each contracted to exhibit,
respectively, an equal division (i.e. 50%0) of the number of motion
pictures announced for release by a Distributor during any given
season, and the Dist~ributor shall generally release during such season
any feature motion picture in addition to the number so announced,
such Distributor shall first offer such additional motion picture for
license to one of such Exhibitors, in the discretion of the Distributor,
provided that at the time of such offer such Exhibitor shall have
duly performed all the terms and conditions of all existing exhibi-
tion contracts between such Exhibitor and Distributor and is not
in default thereunder.
Part 19. In each territory wherein any Distributor maintains an
exchange, such Distribut~or shaUl abide by the regulations promul-
gated by the Code Authority for the prevention of fire, for the hold-
2ng of fire drills, and rigid monthly inspections, the inspection of
prints, the storing of inflammable material, the maintenance and
testing of sprinkler systems and fire extinguishers, the avoidance
of smoking and other cautions, methods and devices to protect the
lives of employees and the public, and to insure safety against fire
haza rds.
E. EXHIBITORS

Part 1. Any Ex~hibitor entering into a contract for the exhibition
of motion pictures which permits the Exhibitor to select from the
total number of pictures licensed less than eighty-five percent (85%0)
of thie total number, and to reject the remainder, shall by written
notice to the Distributor reject each of such motion pictures not to
exceed the number which may be rejected, within twenty-one (21)
days after its date of availability in the exchange territory wherein
is located the Exhibitor's theatre, and upon the Exhibitor's failing
to give such notice of rejection, each of such pictures shall be deemed
to have been selected.
Part a. No Exhibitor shall contract for a license to exhibit more
motion pictures than such Exhibitor reasonably shall require for
exhibition in any theatre or theatres operated by such Exhibitor,
wit~h t.he inten. and~ effect. of depnrivingJ a conmpeting Exhibitor from
contracting to exhibit such excess number of motion pictures, pro-
vided, however, that nothing herein contained shall be deemed to
prohibit any Exhibitor from~ contracting for a reasonable number
of motion pictures in excess of the number which are actually to be
exhibited in the theatre or theatres of such Exhibitor in order to
reasonably protect such Exhibitor against non-delivery of motion
pictu res.
Part 3. SECTION 1. No Exhibitor shall (a) lower the admission
prices publicly announced or advertised for his theatre by giving
rebates in the form of lotteries, prizes, reduced script books, coupons,
throw-away tickets, or by two-for-one admissions, or by other






247


methods or devices of similar nature which directive or indirectly
lower or tend to lower such announced adlmission prices anld which
are unfair to competing Exhibitors, or which deceive thie public; or
(b) fail at all times to maintain t.he minimum price of admission
specified in any contract licensing the exhibition of any motion pic-
ture during the exhibition thereof. This Section shall not be deemed
to prohibit. Exhibitors from reducing or increasing their admission
scales as they see fit, except as may' be prohibited by exhibition
contracts.
SEc. 2. The giving of rebates such as premiums in the form of
gifts or other things of value shall be deemed to be included within
t~he provisions of Section 1 of this Article in those areas as shall be
defined by each Local Clearance and Zoning Boar~d, where the. Ex-
hibitors operating not less than seventy five percent (7i5%) of the
number of the then actively and continuously operatedl theatres not
affliated with Distributors or Prodtucers and the Exhibitors operat-
ing not less than seventy five percent (75%) of the number of thle
then actively and continuously operated theatres alliliated with Dis-
tributors or Producers have both declared in writing that the giving
of rebates in such form shall not be permitted. For the purpose of
such declaration each Exhibitor shall be entitled to one vote for each
theatre then actively and continuously operated by such Exhibitor.
SEC. 3. In CRSe any Exhibitor is found after notice and hiearmg by
a Local Grievance Board provided for in this Codle, to have vriolated
any provision of this part, and if such Local Board sh~all onl account
thereof declare that such Exhibitor shall not be permiitted to license
the exhibition of any motion picture unless the Exh~ibitor ceases and
desists from such violation, the Local Grievance Board~ shall hiave
power to direct that Distr-ibutors of motion pictures shall refuse to
enter into license contracts for the exhibition of their respective
motion pictures by such Exhibitor andl shall refuse to~ make further
deliveries of motion pictures to such Exhiibitor under license agree-
ments executed after the effective date of this Code if the Exhibitor
fails or refuses to so cease and desist..
SEC. 4. NOtwithstanding any action which may be taken by the
Exhhibtors in any area as above in this Part 89 defined ruling out
the giving of rebates as defined in Section 1 hereof, such ruling
shall not become effective until ninety (00) days after such action
on the part of such Exhibitors as aforesaid.
Part 4. No Exhibitor shall transfer the ownership or possession
of a theatre or theatres operated by any such Exhibitor for the
puirpose of avoniding uncompleted contracts for the exhibition of
motion pictures at such theatre or theatres. Any disputes or con-
troversies with respect to any transfer shall be submitted to andl
determined by a Local Grievance Board, and thle findings of such
Board shall be binding upon all parties concerned.
Part 5. (a) No Exhibitor licensedl to exhibit a motion picture
subsequent to its exhibition by another Exhibitor having the right
to a, prior run thereof shall a.dtver~tise such motion picture by any
means of advertising prior to or during its exhibition by such other
Exhibitor.
(b) Notwithstanding anything herein contained, in the event any
Exhibitor shall make complaint that the restrictions embraced in





248


this part work anr unfair hardship on him, the Local Grievance
Board shall have the right to hear such complaint and after de-
termination of the facts presented shall fix and specify the time
limit within which such Exhibitor may advertise such motion pic-
ture; provided, however, that should the subsequent-run Exhibitor
be granted permission to advertise before the completion of said
prior run, he shall not advertise prior to the commencement of said
prior run, nor shall be have the right to advertise in any way, shape,
manner or form, or issue any statement that the prices of admission
are or will be less than the admission prices charged by the Exhibitor
having the first or prior run of such motion picture; provided fur-
ther, however, that such subsequent-run Exhibitor may be granted
the right in cases where the run of such Exhibitor follows the prior
run in or within a period of seven (7) days, to advertise upon the
screen of the Exhibitor or to distribute within the Exhibitor's theatre
a printed program or mail such printed program to a list of regular
patrons, such programs to be limited to announcement of the motion
pictures which will be there exhibited during the period of not more
than seven (7) days immediately following.
(c) Nothing herein contained shall be deemed to prohibit any Ex-
hibitor from advertising generally all of the feature motion pictures
licensed for exhibition by such Exhibitor as a group, but such gen-
eral advertising shall not refer to any one of such motion pictures
at any time prior to its exhibition by any other Exhibitor having
the first or immediately prior run thereof ecepnt~ing as hereinabove
provided.
Part 6. To prevent disturbance of the continued possession of a
theatre by an Exhib~itor, it shall be an unfair trade practice for any
person engaged in the motion picture industry knowingly and In-
tentionally, directly or indirectly, to interfere with pending nego-
tiations between such Exhibitor and any other partyV pertaining to
or affectinga the possession, operation, or occupancy of any such
theatre then actually operated by such Exhibitor, or in respect of
any modification, renewal, or extension of any agreement affecting
the same, for the purpose of preventing the consummation of such
negotiations so as to deprive such Exhibitor of the continued opera-
tion, possession, or occupancy of such theatre.
Part 7. No Exhibitor shall exhibit a motion picture previous to
dawn of the first licensed and booked day of exhibition without
securing express written permission therefore under thle license
agreement.
F. DISTRIBUTORS--EX HIBITORS

Part 1. The so-called Optional Standard License Agreement
(1933) negotiated by Exhibitors and now being used by a large num-
ber of Distributors shall be the form of license contract to be used
by Distributors for liceningn the exhibition of motion pictures, unless
the parties mutually agree that a different form be used, and
excepting that in case any condition or provision thereof is in con-
flict or inconsistent with any provision of this Code, such condition
or provision of said Optional Standard License Agreement shall be
deemed amended to conform with such prvsino this Code, itgven
being the intention that the provisions o hsCd hl oen
Individual Distr~ibutor sales policy provisions may be inserted in the






249


Schedule of such form but shall not be contradictory7 of any provisions
thereof.
Part S. (a) The arbitration of all disputes between Exhibitors
and Distributors arising under any exhibition contract, if th~e parties
shall agree on arbitration, shall be in accordance with the optional
arbitration clause of the so-called Optional Standcard License Agree-
ment, provided for in this Code, except as the provisions of such
clause may be modified by the provisions of this Clode.
(b) By stipulation of the parties to any dispute growing out of
an exhibition contract, the number of ar~bitr~ators to be appointed
by each party may be reduced to one, wFith power in the two thus
appointed, if they cannot agree upon an award, to appomnt an umpire
as provided in said optional arbitration clause.
Part 3. No Exhibitor or Distributor shall induce or seek to
induce the breacrh of any subhsisting contract licensing the exhibition
of motion pictures.
Part 4. No Exhibitor or Distributor shall give any gratuity or
make any offer of any griatuity for the purpose of procuring advan-
tages that would not otherwise be procurable, or as an inducement
to influence a Distributor or Exhibitor, or representative of either
not to deal with any competing or other Exhibitors, or Distributors.
Part 5. No Exhibitor or Distributor shall make any disclosure
of box office receipts for publication except necessary reports to
stockholders, credit and governmental agencies, and to other like
bodies. No Exhibitor or Distributor shall be responsible for dis-
closures in violation of this Part made by agents not authorized to
do so.
Part 6. If in any license agreement for the exhibition of feature
motion pictures the Exhibitor has contracted to exhibit all of the
motion pictures offered at one time by the Distributor to t~he Exhib-
itor and the license fees of all thereof average not more than
$;250.00, the Exhibitor shall have the privilege to exclude from such
license agreement not to exceed ten percent (10%) of thme total
number of the motion pictures so licensed; provided the Exhibitor
(1) is not in default under such license agreement, and
( 2) shall have complied with all of the provisions thereof, if any,
for the exhibition of such motion pictures at specified intervals.
(b) Such privilege of exclusion may be exercised only upon the
following terms and conditions:
() The Exhibitor shall give to the Distributor written notice of
eahmotion picture to be excluded within fourteen (14) dlays after
the general release date thereof in the exchange territory out of
which the Exhibitor is served.
(2) The Exhibitor may exclude without payment therefore one (1)
motion picture out of each group of ten (10) of the number of
feature motion pictures specified in the license agreement provided
he has paid for the other nine (9) of such group.
(3) If such privilege of exclusion is niot exercised as provided in
paragraph (b) (2) above, the Exhibitor may nevertheless exercise
such prIvilege by paying the license fee of each motion picture
excluded with the notice of its exclusion. In such case, suchl pay-
ment shall be credited against such tenth or succeeding tenth motion





250


picture, as the case may be, wfhichl the Exhibitor would otherwise be
privileged to exclude as provided in paragraph (b) (2) above.
If the only or last group licensed is less than ten (10) and
more than five (5) motion pictures, the privilege to exclude shall
apply provided the Exhibitor has paid for all motion pictures but
one in such group.
(c) Upon the failure or refusal of the Exhibitor to comply with
any term or condition of such license agreement, or to comply with
any arbitration award in respect thereto, the privilege of exclusion
forthwith shall be revoked and the Exhibjitor shall be liable for and
pay to the Distribut~or the license fees of all motion pictures
theretofore excluded.
(d) If th~e license fee of any feature motion picture specified in the
license agreement is to be computed in whole or in part upon a per-
cent~age of the receipts of the Exhibitor's theater, such license fee (for
the purpose of computing the average license fee of all the motion
pictures licensed) shall be determined as follows:
(1) Average the license fees of all of the Distributor's feature
motion pictures exhibited upon a percentage basis at the Exhibitor's
theater during the period of one year prior to the term of such license
agreement.
(2) If none of the Distributor's feature motion pictures were ex-
hibited upon a percentage basis at such theater during said period,
average t~he license fees of all feature motion pictures exhibited upon
aI nprcentageP basis.c at such t~heater duriPng the said period.
(e) If the rental of any motion picture excluded is to be computed
in whole or in part upon a percentage of the receipts of the E~xhib-
itor's theater, the sum to be paid by the Exhibitor as provided in
paragraph (b) (3) hereof shall be determined as follows:
(1) Average the ~gross receipts of all the Distributor's feature
motion pictures exhibited at the Exhibitor's theatre during the ninety
(90) day period preceding the Exhibitor's notice of exclusion, and
apply to such average the percentage terms specified in the license
agreement for the picture excluded.
(2) If no feature motion pictures of the Distributor were exhib-
ited at the Exhibitor's theatre during said ninety (90) day period,
average the daily gross receipts of the Exhibitor's theatre for the
period of t~hir~t (30) operat~ingr day~s preceding the Exhibitor's no-
tice of exclusion and apply to such average the percentage terms
specified in the license agreement for the picture excluded.
(f) In computing the number of feature motion pictures which
may be excluded hiereunder, fractions of more than one half (1/2)
shall be regarded as one (1).
(g) Upon the exclusion of each feature motion picture, the license
therefore and all rights thereunder shall terminate and shall revert
to the Distributor.
(h) The Optional Standard License Agreement referred to in
Part 1 hereof shall be deemed amended by substituting in place of
Article Fifteenth of such contract. the provisions of this Part.
ARTICLE VI:
Part 1. Clear~ance and Zonin~g Boards.--SECTION 1. To provide
against clearance of unreasonable length and/or area in any ex-






251


change territory, fair, just, reasonable, and equitable schedules of
clearance and zoning may be prescr~ibedl by a Local Clearance and
Zoning Board created for such territory.
SEc. 2. Each such Board shall be appointed by the Code Authority
and shall consist of two representatives of Distributors, one of whom
shall be a National Distributor with theatre affiliations and one of
whom shall be a Distributor without circuit theatre affiliations; two
representatives of first-run theatres located in such territory, one of
whom shall be an affiliated Exhibitor, if there be one, andl one of
whom shall be an unaffiliated Exhibitor; and two representatives of
subsequelnt.-ru~n ulnaffliated thea~tres operat~ing within such territory;
adirc or ne perso proed by the Administrator who shall have no
dirctor ndrec afiiation with any branch of the motion-picture
industry who shall be regarded as the im~partial representative of the
Code Authority and who shall vote on any question before the Board
only in the case where the Board is deadlocked. There shall be a
Chairman of each Board, selected by a majority vote of the members
of the Board. Any vacancy in the Board shall be filled from the
class of members in which the vacancy occurred.
SEc. 3. Each Local Clearance and Zoning Board shanll, promptly
after its creation, and prior to January 1, 1934, and prior to January
1st of each year thereafter, formulate, prescribe and publish for its
territory, schedules of clearance as in Section 1 above described, for
the season next ensuing. Such schedules may classify theatres by
zones or other classifications suited to local conditions, but, for the
sole purpose of fixing the maximum clearance in length of time and
area after the conclusion of the prior runs of such theatres. Each
Board may, after fair and reasonable notice and hearing to interested
parties, change, modify, or vary any part of t~he schedule set up
by it, provided that any such change or modification shall not in
any wise apply to, affect, or modify any exhibition contract made
subject to, or in reliance upon, or pursuant to any such schedules,
without the prior written consent of thle parties to such contract.
SEc. 4. Each Board when making any classification of theatres, or
when 6xing the maximum period or area of clearance in respect of
any theatre shall, among other things, consid-er and give due regard
to the following factors:
(a) that clearance to a very considerable extent determniness the
rental value of motion pictures;
(b) that exhibitions of the same motion picture within the samne
competitive area at too short an interval after the conclusion of a
nprecdingr ruin or ruins thereof by uindulyi rest~ricting the competitive
area in which clearance is limited, depreciates thie rental value of
motion pictures; and
(c) that all such depreciations of the rental values of motion pic-
tures tend to reduce the number of motion pictures produced, d~is-
courages the production of motion pictures of quality involving
large investments of capital, labor, skill, andi enterprise and thereby
tend to reduce employment.
(d) that unreasonable clearance to a considerable extent affects
the value of motion pictures for subsequent-run theaters.
(e) that unreasonabe clearance depreciates the potential return
from motion pictures to subsequent-run t~heat~ers.





252


(f) that unreasonable clearance as to time a~nd area, diminishes the
potential revenue to the Distributor from the subsequent-run Ex-
hibitor.
SEc. 5. The decision of each Board upon any question shall be
determined by a majority vote, but in case the Board is evenly di-
vided, such question shall be submitted for determination to the im-
partial representative of the Code Authority, who is provided for
mn Section 2 of this PART. The decision of the Board and/or the
impartial representative, as the case may be, shall be in writing.
~SEaC. 6. It shall be the duty of each such Board to promptly pub-
lish the schedules formulated by it, and file a copy thereof immle-
diately with the Code Authority.
SEC. 7. (a) Any party aggrieved by the schedules shall promptly
and not later than thirty (30) days after publication thereof file
a protest in writing with the Board issuing them. Thereupon such
Board shall promptly convene and give reasonable notice of hearing
to all parties concerned or having an interest in the proceeding and
hear them and accept from them all papers and evidence. The Board
shall have power to make reasonable rules respecting oieo h
time, place, and manner of hearing. The Board shal moieoftake its de-
cision within 6ifteen (15) days from the filing of the protest, or
within three (3) days after the parties shall have been fully heard,
whichever date Is sooner. Any party aggrieved by the decision shall
have the absolute right to appeal thlerefrom to the Code Authority,
provided such appeal be filed or mailed by registered mail or de-
livered in writing not later than five () days after the decision
of the Local Board is rendered, in which case the protest, with all
evidence taken before the Local Clearance and Zoning Board, shall
be referred to the Code Authorityv.
(b) All persons interested in the decision shall have the right to
appear before t~he Code Authority and present additional evidence.
The Code Authority, after investigating such protest and reviewing
the evidence theretofore taken and considering the additional evi-
dence, if any, shall promptly render its decision, and not later thian
fifteen (15) days from and after the dact~e of the hearing upon the
appeal. Thle requirement as to the various steps herein prescribed
shall be mandnctory in order to givre full relief before the. buyinga
season commences.
SEc. 8. (a) The schedules presented and/or decisions made by any
Local Clearance and Zoning Board and/'or decisions of the Code
Authority upon any appeal to it, shall be binding upon all Dis-
tributors and Exhibitors in the territory affected.
(b) Pending the final determination of any dispute or controversy
all existing contracts between the disputants shall continue to be
perfor~med- in every respect.
SEC. 9. The jurisdiction of the Local Clearance and Zoning Board
shall be limited; as herein specifically provided and such Board shall
hear no questions other than those pertaining strictly to clearance
and zoning matters.
Part B. Grievance Board C.--SECTION 1. The complaint of any Ex-
hibitor that a competing Exhibitor has committed any of the acts
set forth in the following p~aragraphs (a), (b), (c), and (d) with the
intention and effect of depriving, without just cause, the complaining






253


Exhibitor of a sufficient number of motion pictures to. operate such
Exhibitor's theatre, shall be referred for determination to a Local
Grievance Board constituted as hereinafter provided:
(a) The licensing of more motion pictures than are reasonably
required.
(b) The adloption of an uinfairlyr comPeting operating policy of
unnecessary and too frequent changes of motion pictures.
(c) The exaction without just cause of an agreement from any
Distributor as a. condition for entering into a contract for motion
pictures that such Distributor refrain from licensing its motion
pictures to the complaining Exh~ibitor.
(d) The commission of any other similar act with the intent and
effect of depriving without just. cause the complaining Exhibitor of a
sufficient number of motion pictures to operate such Exhibitor's
theatre.
SEc. 2. Eneb such complaint shall be in writing and made immedi-
ately after knowledge of the commission of the act or acts complained
of, or in cases where an act or acts is threatened, immediately after
notice thereof, and the Local Grievance Board after a fair and im-
partial consideration of all of the facts presented, a full, expeditious
and complete hearing of all1 the parties concerned, including the
Exhibitors directly involved, the Distributors having contracts with
the Exhibitor complained against, and Exhibitors having contracts
for runs subsequent to each of the Exhibitors directly involved, and
if it deems it necessary, an independent investigation of the facts,
shall make a prompt determination of each complaint submitted to it.
SEC. 8. The LOcal Grievance Board shall determine whether or not
any Exhibitor complained of has committed any of the acts specified
in paragraphs (a), (b), (c), and (d) of Section 1 of Part 2 hereof,
and shall make findingrs of fact in such regard. The Local Grievance
Board upon the facts found shall maike an award (a) dismissing the
complaint, or (b) granting such relief as the Local Board may deem
appropriate. The Local Grievance Board shall not have power to
award damages. No award shall be made in favor of a complaining
Exh~ibitor unless t~he Local Grievance Board shall find as a fact that
the complaining Exhibitor is able, ready, and willing to fully carry
out and comply with all of the terms and conditions which may be
fixed by the Local Grripeance! Board as a condition for ma~kingr the
award, which terms and conditions shall in no event be less favorable
to the Distributor concerned than those contained in the license con-
tract of the Exhibitor complained of, including the Distributor's loss
of revenue, if any, resulting from the elimination of or red-uction
of revenue from any subsequent run or runs made necesssary .by uc
award, and such other terms and conditions as the LocalGrenc
Board may prescribe.
SEc. 4. All complaints and grievances of Exhibitors or Distribu-
tors concerning provisions of this Code or otherwise and not specifi-
cally designated to be heard or passed upon in the first instance by
the Code Authorit5- or by arbitration or by the Local Clearance
and Zoning Board shall be heard by the Local Grievance Board, and
if such Local Board by a majority vote of the representatives thereon
shall deem that any such complaint or grievance shall be certified
to he Code Authority for determination, it shall be so certified, and





254


the Code Authority shall consider and determine the same; other-
wise such complaint or grievance shall be dismissed with a right of
appeal from sjuch dismissal to the Code Authority. Such proceed-
ings before the Local Grievance Board and before the Code A~uthor-
ity shall be within the periods of time hereinafter prescribed in
Sections 6 and 7 hereof.
Sj~c. 5. Each Distributor shall have the right to license all or any
number of the motion pictures distributed by such Distributor for
exhibition at theatres affiliated with such Distributor, and no Local
Gnrieance Board shall have jurisdiction to hear or determine any
complaint by any Exhibitor based upon the fact that a Distributor
has licensed th~e motion pictures distributed by it for exhibition at
theatres affiliated with such Distributor.
SEc. 6. (a) There shall be established a Local Grievance Board,
appointed by the Code Authority, in each exchange territory. Each
such Board shall consist of two representatives of Distributors, one
of whom shall be a National Distributor with theatre affliations and
one of whom shall be a Distributor without circuit theatre affilia-
tions, and two representatives of Exhibitors, one of whom shall be
an affliated Exhibitor, if there be one, and one of whom shall be an
unaffiliated Exhibitor, and one person who shall have no direct or
indirect affiltiation with any branch of the motion picture industry,
who shall be approved by t~he Administrator, who shall be regarded
as the impartial representative of the Code Authority, and who shall
vote on any question before the Board only in the case where the
Board is deadlocked. There shall be a Chairman of each Board,
selected by a majority vote of the members of the Board. Any
vacancy in the Board shall be filled from the class of members in
which the vacancy occurred. No member of such Board shall sit on
any matter involving his own or his company's interest.
(b) The decision of each Local Board upon any question sub-
mitted to it shall be determined by a majority vote, but in case the
Board is evenly divided, such question shall be submitted for de-
termination to the impartial representative of the Clode Authority, as
provided in paragraph (a) of this Section. The decision of the
Board and/or the impartial representative, as the case may be, shall
be in writing. All decisions of the Local Board shall be made within
fifteen (15) days from the filling of the protest, grievance, or com-
plaint, or within three (3) business days after the parties shall have
been fully heard, whichever date is earlier.
SEc. 7. (a) Any party aggrieved by any decision of the Local
Board shall have the absolute right to appeal therefrom to the Code
Authority, provided such appeal be filed or mailed by registered
mail or delivered in writing not later than five (5) days after the
decision of the Local Board ~is rendered, in which case the grievance
or complaint, together with all the evidence taken before the Local
Board shall be referred to the Code Authority.
(b) Pending t~he determination of such appeal, the determination
order or other action of the Local Grievanice Board shall be stayed.
(c) Any party aggrieved shall have the right to appear before the
Code Authority and present additional evidence. The Code Author-
ity, after investigating the complaint or grievance and reviewing the
evidence theretofore taken, and considering the additional evidence,






255


if any, shall promptly render its decision not. later thafn fifteen (15)
days ~from and after the date when t~he parties have been fully heard
on appeal.
SEC. 8. No Exhibitor or Distributor shall be entitled to file any
complaint under this or any other Article of this Code unless
such Exhibitor or Distributor shall have duly execulted this Code
in its entirety within forty-five (45) days after it is signed by the
President of the United States, and/or forty-five (45) days after en-
gaging in the motion picture' industry, and shall have thereby agreed
to comply with all the requirements of the National Industrial
Recovery Act. Evidence of such compliance shall be filed with the
Code Authority.
Part 3. All members appointed to serve on respective Clearance
and Zoning Boards and Local G~rievance Boards shall be persons
of good repute and of good standing in the industry, and shall upon
acceptance of appointment subscribe and file wFith thl~e Administra-
tor an oath to fairly and impartiallyl determine whatever issue is
presented to the Board to wvhich such member has bJeen appointed.
No such Board shall contain in its membership mor~e than one rep-i
resentative of any Distributor or Exhibitor.
Part 4. If a member of any Board provided for by tlhis Article
VI ceases to belong to the class he represents upon such Board, his
membership shall terminate, and the Code Authority shall fill the
vacnrvanc so causedh by esignating a representatives of the same class.
ARTICLE VII--GENERAL TRADE PoucYS1 PRovisions
Part 1. The industry pledges its combined strength to m~aintain
right moral standards in the production of motion pictures as a form
of entertainment. To that end the industry pledges itself to and
shall adhere to the regulations promulgated byZ and within the indus-
try to assure the attainment of such purpose.
Part S. The industry pledges it~s combined strength to maintain
the best standards of advertising and publicity procedure. To that
end the, industry pledges itself to and shall adhere to the regulations
promulgated by and wTithin the industry to assure the attainment
of such purpose.
ARTICLE VIII-MnISCELLANEOUS PROVISIONS
Part 1. Any Exhibitor forwarding or delivering to another Exr-
hibitor a print of a motion picture at t~he request or upon the order
of the Distributor thereof, shall, but only for such purpose, be
deemed to be the agent of such Distributor.
Part f2. (a) WVherever in this Code arbitration of any matter is
provided for, other than arbitration as provided in the Optional
Standard License Agreem~ent. (1933) or as may~ be otherwise sp~e-
cifically provided for, such matter shall be submitted for determina-
tion to an Arbitration Board. Such Arbitration Board shall con-
sist of four (4) members. Each of the groups concerned in such
matter shall appoint twro of such members. In any case where
arbitration is to be used as provided in this Code, upon the written
request of either group to the dispute or controversy the group mak-
ing such request shall name therein two arbitrators, stating the






256


business address and business or business connection of each, and
shall designate therein the date, time, and place of the hearing of
such controversy. The date of such hearing shall not be earlier than
seven (7) days from the date of the sending of such notice, unless
it shall be claimed in such notice that irreparable injury will result
unless there is a speedy determination of such controversy, in which
case such hearing may be designated to be held earlier than the said
seven-dlay period.
(b) W7ithin five (5) days from the mailing of such request for
arbitration, or within twenty-four (24) hours if the date of such
hearing shall be earlier than seven (7) days from the date of the
sending of such notice, the group upon whom such request is made
shall name two arbitrators in a written notice mailed or delivered
to the other party, stating therein the business address and business
or business connection of each arbitrator. If either group fails or
refuses to name the arbitrators as herein provided, or if any arbitra-
tor so named shall fail or refuse to act, or be unable to serve, or
shall be challenged, and others are or another arbitrator qualified
and then available to act is not appointed, others or another arbi-
trator may be appointed by the other group as the case may be.
(c) No member of an Arbitration Board shall hear or determine
any controversy in which he has an interest, direct or indirect, and
any member having such interest shall be disquali~ed to act.
(d) If the arbitrators or a majority of them are unable to reach
a decision, they or a majority of them shall immediately select an
umpire wh;o shall not be engaged in the motion picture business. In
such case, the hearing before the umpire shall be at such time and
place as the umpire shall designate and shall be had before the
umpire alone, the arbitrators not to be permitted to attend the hear-
ing before the umpire. If the arbitrators or a majority of them are
unable to agree upon the selection of an umpire, the Administrator
shall upon request make such selection.
Part 3. Nothing in this Code shall be deemed to apply to the pro-
duction, distribution, or exhibition of motion pictures on 61lm of
recognized substandard widths, or to slide films, or to nontheatrical
motion pictures designed primarily for educational, scientific, in-
dustrial, commercial, advertising, selling, or other nontheatrical pur-
pose, or to television of motion pictures, provided that the commercial
production, distribution, or exhibition of such films shall be subject
to investigation by the Code Authority to determine whether such
production, distribution, or exhibition of such films is unfair compe-
tition to an established motion-picture theatre or theatres. If found
to be unfair competition, the Code AuthorityV shall promnulgate rules
and regulations governing such unfair competition.
Part 8. The provisions of this Code shall be separable.

AnnezzE IX- 1SANDATORY AND AMCENDING PROVISION'S

Part 1. This Code and all the provisions thereof are expressly made
subject to the right of the President, in accordance with thle pro-
vision of Clause 10 (b) of the National Industrial Recovery Act,
from time to time to cancel or modify any order, approval, license,
rule, or regulation, issued under Title I of said Act and specifically






257


to the right of the President to cancel or modify his approval of this
Code or any conditions imposed by him up~on his approval thereof.
Part f2. Such of the provisions of this Code as are not required
to be included therein by the National Industrial Recovery Act, upon
the application of the Code Authority approved by the Administrator
and with the approval of' the President, may be modified or elimi-
nated as changes in circumstances or experience may indicate. It is
contemplated that from time to time suppleme~ntary provisions to
this Code or additional codes wrill be submitted for t~he approval
of the President to prevent unfair competition and other unfair
and destructive practices and to effectuate the other purposes and
policies of Title I of the National Industrial Recovery Act con-
sistent with the provisions hereof.
Approved Code No. 124
Registry No. 1639-)3





UNIVERSITY OF FLORIDA


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