Approved Code No. 124 Registry No. 1639--03 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

MOTION PICTURE INDUSTRY 

AS APPROVED ON NOVEMBER 27, 1933 

BY 

PRESIDENT ROOSEVELT 

WE DO OUR PART 

1. Executive Order 

2. Letter of Transmittal , .... .._---------~...;. 

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U.I. DEP08'TOftY 

3. ode 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1:;,33 

For sale by the Superintendent of Documents, Washington, D.C. - - - - • - - - Ir.rice 5 CWlW 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau of 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

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Birmingham, Ala. : 257 Federal Building. 

Boston, Mass. : 1801 Customhouse. 

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Cleveland, Ohio : Chamber of Commerce. 

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Houston, Tex.: Chamber of Commerce Building. 

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Seattle, Wash.: 809 Federal Building. 

(II) 
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 Act} 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 competition complie.s 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 have 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 £air 

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 Administrator shall have the right to review, and if necessary, 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 temporary 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 shall have the 

23773°-244-92-33 (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 

deems 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 Administrator 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 provisions of article V, division A, part 4, of this code are hereby suspended from operation and shall not become effective pending further report from the Administrator after investigation; and 

( 5) Because the President believes that writers, authors, and 

dramatists are engaged in purely creative work, the provisions of 

article V, division B, part 5, sections 1 ( c), 2, 3, 4, and 6, of this 

code, shall not become effective with respect to such employees; and 

(6) Because the President believes that further investigation is 

required with respect to problems generally affecting unfair competitive methods for the services of classes of employees of producers 

rendering services of an artistic, interpretative, technical, supervisory, 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. ROOSEVELT. 

Approval recommended: 

HUGH s. JOHNSON, 

Administrator. 

THE WHITE HousE, 

November 27, 1933. 
NOVEMBER 4, 1933. 

The PRESIDENT, 

The White House. 

MY DEAR MR. PRESIDENT: The Hearing on the Code of Fair 

Competition for the Motion Picture Industry in the United States 

was conducted in the Large Auditorium of the United States Chamber of Commerce Building in Washington, D.C., commencing on 

September 12, 1933, and ending on September 14, 1933, in accordance 

with the provisions of the National Industrial Recovery Act. 

The following papers are included and annexed: 

1. Code submitted. 

2. Notice of Hearing. 

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 industry. 

This industry embraces all activities connected with the production, distribution, and exhibition of motion pictures in theaters. 

The three economic divisions of this industry are entirely interrelated with and dependent upon each other, and this Code, therefore, embraces every step taken by the Industry from the production of motion pictures to their distribution and thereafter their 

exhibition before the public. 

The industry assumes a position of unusual importance because 

of its far-reaching influence upon social and economic standards 

and c'Onduct throughout the world. The total investment in all 

branches of the industry in the United States is estimated at 

$2,000,000,000, of which investment $95,000,000 is represented by 

production studios. 

The labor provisions of the Code are, in my opinion, fair and 

equitable. Every class of labor in all the divisions of the industry 

is provided 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 40 hours per 

week. 

Provision is made for safeguarding the working conditions of 

"extras", "free-lance" players, and actor employees in motionpicture vaudeville and presentation houses. 

_/\. Code Authority is provided for with respect to the administration of the Code, such Code Authority being named and consisting 

of five producers, distributors, and exhibitors with circuit theatre 

interests, and five producers, distributors, and exhibitors without 

circuit theatre interests. 

I recommend such Code Authority, with the proviso, however, that 

the Administrator have the right upon proper showing to disapprove 

(217) 
218 

any of its acts or the acts of any Cornn1ittees 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 appoint 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 ma,de for the seating upon the Code Authority of 

representatives of classes of employees whose interests may be affected, 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 affects 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 recommend that such provisions shall in no event apply to writers, authors, and dramatists, 

and that with respect to other employees embraced within such provisions 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 specifically provided for, together with the creation of certain Boards 

known as "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 determination 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 intended particularly to care for the buying problems of exhibitors, 

and so that they may be assured to the greatest degree possible of 
219 

a sufficiency of motion-picture product with which to operate their 

theatres. 

The various Advisory Boards have approved this 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 with the problems of this industry. 

I find that: 

(a) The Code as revised complies in all respects with the pertinent provisions of Title I of the Act including, without limitations, 

subsection (a) of Section 7 and subsection (b) of Sedion 10 thereof; 

and that 

(b) The respective Producers', Distributors', and Exhibitors' 

Committees, under their Coordinators, were and are industrial 

groups truly representative as a whole of the MotiQn Picture Industry; 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 eliminatB 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 l\1otion Picture Industry. 

Respectfully submitted. . 

Huorr S. JoHNSoN, 

Administrator. 
CODE OF FAIR COMPETITION 

FOR THE 

MOTION PICTURE INDUSTRY 

PREAMBLE 

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 ·an those engaged in the Motion Picture Industry. 

ARTICLE I-DEFINITIONS 

1. The term "Motion Picture Industry" as used herein shali be 

deemed to include, without limitation, the production, distribution, 

or exhibition of motion pjctures 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 engage or contract to engage in the production of motion pictures. 

3. 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, partnerships1 associations, and corporations engaged in the 

ownership or operat10n of theaters for the exhibition of motion 

pictures. 

5. The term " legitimate production" as used herein shall be 

deemed to refer to theatrical performances of dramatic and musical 

plays performed on the stage by living persons. 

6. The term ''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 " zone " as used herein shall be deemed to refer to 

any defined area embraced within the operations of a local clearance 

and zoning board. 

9. The term "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 exhibition 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 managed by a Producer or Distributor or in which a Producer or a 

Distributor has a financial interest in the ownership, control, or 

management thereof. The mere ownership, however, by a Producer 

or Distributor of any theatre premises leased to an Exhibitor shall 

not constitute any such Exhibitor an "affiliated Exhibitor." 

11. The term " unaffiliated Exhibitor " as used herein shall be 

deemed to refer to an Exhibitor engaged in the business o:f operating 

a motion-picture theatre which business is not owned, controlled, or 

managed by any Producer or Distributor or in which no Producer or 

Distributor has an interest in the ownership, management, or control 

thereof. 

12. The term" outside or associated Producer" as used herein shall 

refer to a Producer of moton pictures, including :features, short subjects, and/or cartoons, and which Producer OJ?erates his or its own 

production unit independently o:f, though 1n 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 "Administrator" as used herein shall be deemed to 

mean the National Recovery Administrator. 

14. The term" effective date" shall be, and this Code shall become 

effective on, the tenth day :following the approval of this Code by 

the President o:f the United States. 

15. Population, for the purposes of this Code, shall be determined 

by re:ferenoe to the 1930 Federal Census. 

ARTICLE II-ADMINISTR.A TION 

1. A Code Authority of the Motion 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 therefor, together 

with such other powers and duties as are prescribed in this Code. 

2. (a) The Code Authority shall consist of the :following: 

REPRESENTING .AFFILIATED PRODUCERS, DISTRIBUTORS, AND EXHIBITORS 

Merlin H. Aylesworth. 

Sidney R. Kent. 

George J. Schaefer. 

Nicholas M. Schenck. 

Harry M. Warner. 

REPRESENTING UN .AFFILIATED PRODUCERS, DISTRIBUTORS, AND EXHIBITORS 

Robert H. Cochrane. 

W. Ray Johnston. 

Ed Kuykendall. 

Charles L. O'Reilly. 

Na than Y amins. 

(b) As and when any question directly or indirectly affecting any 

class of employees engaged in the motion picture industry is to be 

considered by the Code Authority, one representative 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 Administrator, 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 additional 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 

desi~nated. 

( 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 the same general class as that of such member. 

(g) No employer in the industry shall have more than one representative 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 t-0 time appoint Committees 

which may include 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 generally 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 Authorit;y shall not b€ relieved of its respon- sibility and duties hereunder. The Code Authority may at any time 

remove from any Committee any member thereof. The Code Authority shall coordinate the duties of the Committees with a view to 

promoting joint and harmonious action upon matters of conm1on 

interest. Any action taken by any of such Committees shall be 

reviewed by the Code Authority. 

5. (a) The 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 disseminate without individual identification among the members of 

the industry summaries thereof, all in such form and manner as the 

Code Authority 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 

maries 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 deem necessary for 

the purposes recited in Section 3 (a) of the 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 administering the 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 the 

industry, and shall report to the Administrator on any such matters. 

The Code Authority may initiate and consider such recommendations 

and regulations and interpretations, including those pertaining to 

trade practices, as may come before it. 

7. The Code Authority, after notice and hearing, may prescribe 

additional rules governing the conduct of Producers, 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 and hearing as he 

shall deem proper, shall constitute rules of fa.ir 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 organizations in the industry. 

9. No member of the Code Authority 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 

n1ember, shall designate an alternate of the same general class not 

connected with the company or theatre of the ineligible member to 

sit in his place. 

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 buμgeted and fairly allocated among the three divisions of the industry and assessed against the respective members 

thereof who accept the benefits of the activities of the Code Authority 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 an 

expense in administering this Code shall not be entitled to file any 

complaint under any ARTICLE or PART thereof. 

ARTICLE III-GENERAL PROVISIONS 

SECTION 1. (a) Employees shall have the 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 0£ such representatives or in self-organization or in other concerted activities for 

the purpose of collective bargaining or other mutual aid or protection; 

(b) No employee and no one seeking employment shall be required 

as a condition 0£ employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of 

his own choosing; and 

( c) Employers shall comply with the maximum hours o:f labor, 

minimum rates of pay, and other conditions of employment, approved 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 

discriminate against them nor to permit monopolies or monopolistic 

practices. 

ARTICLE IV-LABOR PROVISIONS 

A. On and after the effective date o:f this Code, in the Production 

of Motion Pictures : 

SECTION 1. Hours of employment.-( 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; 

firemen; garage clerks; gardeners; janitors; librarians; mail clerks; 

messengers; mimeograph operators; porters; readers; restaurant 

workers; seamstresses; secretaries ( exclusive of Executives' secretaries 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; carpenters; casters and mould.makers (staff); cement finishers; chauffeurs and truck drivers; construction foremen (carpenters) ; electrical :foremen; electrical workers; fl.oormen (electric) ; foundrymen; 

gaffers; grips; laborers; lamp operators; machinists; marbleizers, 

grainers, and :furniture finishers; modelers (staff); model makers 

(staff); moulders (metal); operating engineers; ornamental iron 

workers; painters; pattern makers; plasterers; plumbers; projectionists ( except process projectionists) ; propertymen; scienic artists; set drapers, sheet-metal workers; sign writers; sprinkler fitters; steam fitters; structural steel workers; swing gang (property) ; 

upholsterers; welders; and Laboratory Workers o:f the :following 

classifications; Chemical mixers1 negative assemblers and breakerdowns; negative developers' assistants, negative. notchers, negative 

splicers, positive daily assemblers, positive developers' assistants, 

positive release splicers, printers, processing and negative polishers, 

release inspectors, rewinders, sensitometry assistants, shi:ft boss 

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 maintenance 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 o:f so-called "extras") ; attorneys and 

their assistants; department heads and their assistants; directors; 

doctors; managers; executives, their assistants and secretaries; professional nurses; producers and their assistants; purchasing agents; 

unit business managers; and writers; nor to 

(2) employees engaged directly in production work whose working time must necessarily follow that of a production unit, including 

art directors; assistant directors; cameramen and assistants; company wardrobe men (women) and assistants; costume designers; 

draftsmen; make-up artists and hairdressers; optical experts; positive cutters and assistants; process projectionists; script clerks; set 

dressers; "stand-by" or "key-men"; sound mixers; sound recorders; 

wardrobe fitters; nor to 

(3) employees regardless of classification assigned on location 

work; nor to 

(4) employees engaged directly in news-reel production work in 

the following classifications: editors and subeditors; film cutters and 

film joiners; typesetters; cameramen and 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 computed as working hours; nor shall this limitation on working 

hours apply to news-reel cameramen and soundmen 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 

"gypsy" assignments; nor to 

( 5) employees of producers of animated motion-picture cartoons 

in the following classifications: animators, assistant animators, cartoon 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 week, subject to the 

exceptions made herein in cases of emergency. 

( e) With respect to those classes of employees specified within 

subdivision (2) of the foregoin~ subdivision ( d) of this Section 1: 

(1) such employees employed on an hourly basis or on a daily 

basis with overtime compensation shall at the conclusion of any 

single production be given a full day 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 weekly basis 

whether by agreement in writing or otherwise, shall not be deemed 

to be within the purview of this subsection (1). 

(2) Art directors, assistant directors, company wardrobe men, 

women and assistants, costume designers, draftsmen, make-up artsists, 

hair dressers, optical experts, process projectionists, script clerks, 

and wardrobe fitters receiving seventy dollars ($70.00) or less per 

week without overtime compensation, at the conclusion of any single 

production shall be laid off one full day, without pay, for each six 
226 

(6) hours of work in excess of a thirty-six (36) hour weekly average 

during the production period, but for each six ( 6) hours or fraction 

thereof which each such employee has worked in excess of a fiftyfour (54) hour weeky average during said production such employee 

shall receive one full day's pay. No such employee shall be permitted to work in another studio during the time of such lay-off. 

SEc. 2. Mini1num wages.-(a) No employee of any class shall be 

paid less than forty (40) cents per hour. 

(b) The following clerical, office, 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 clas es of studio mechanics shall 

be paid less per hour than the rates specified for each class: 

Artists and Sculptors __ _____________ ________________________________ $1. 94 

Automotive Mechanics ______________________________________________ 1.00 

Black miths _______________________________________________________ 1.16% 

Carpenters _________________________ ,: _______________________________ 1.16% 

Casters and l\Iouldmakers (staff)___________________________________ 1. 16% 

Cement Finishers________ ________________________________ __________ 1. 16% 

Construction Foremen (carpenter)__________________________________ 1. 3311.3 

Electrical Foremen________________________________________________ 1. 33 1⁄2 

Electric-a I "\Yorkers_______________________ __________________________ 1. 16 % 

Floormen (electric) ________________________ ________________________ 1.00 

Foundrymen _______________________________________________________ 1.16% 

Gaffers _________________________ ___________________________________ 1.16% 

Grips ___ _____ _________ ____________________________________________ 1. 00 

Laborer---------------------------------------------------------- .60 

Lamp Operators___________________ __________ ______________________ 1. 00 

l\Iacbinists _____________________ ______ ______________________________ 1.1G% 

Marbleizer.·, Grainer and Fur Fini ·llers____________________________ 1. 40 

Modelers (staff)________ ______ __ _________ __________________________ 1. 94 

~Iodelmakers (staff) ______ _____ ___________ ____ _____________________ 1.25 

l\Ioulders (metal) __ ____ ____________________________________________ 1.167

3 

Operating Engineers____________ ____ ____ ___________________________ 1. 16% 

Ornamenta l Iron Worker. __________________________________________ 1.16% 

Painters __ __ ____ __________ ______________ ___________________________ 1.16 2/4 

P attern Make·rs___________________________________________________ 1. 1G % 

Plasterer--------------------------------------------------------- 1.25 Plumbers _________ ____________________ ____ _________________________ 1.16% 

Projectionists---------------------------------------- --------------- 1. 25 

Propertymen (first)________________________________________________ 1. 00 

Propertymen (second) _____ _________________________________________ . 90 

Scenic Artists______________________________________________________ 2. 25 

Set Draper------------------------------------------------------- 1.00 Sheetmetal Workers________________________________________________ 1. 16 % 

Sign Writers _____ _______________________________________________ 1.66% 

Sprinkler Fitters___ __________________________________ _____________ 1. 16% 

Steam Fitters____________ ___ ______________________________________ 1. 16% 

Structural Ste€1 \\7orkers ___________________________________________ 1.162/2 

Swing Gang (property) ------------------------- ------------------- . 75 Upholsterers _______________________________________________________ 1.10 

Weldlers ___________________________________________________________ 1.1673 

When any of the aboYe studio mechanics works more than six (6) 

hours per day on: (1) emergency or maintenance or repair work, or 

(2) to avoid hindering, reducino- 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 follo~ing cla es shall be paid less per 

hour than the rates specified £or each class : 
227 

Assistant Cutters _______________________________________________ $1. 00 

Chauffeurs and Truck Drivers___________________________________ . 831⁄2 

Laboratory Workers of the following classifications : 

Chemical Mixers___________________ ____________________________ .70 

Negative Assemblers and Breaker-downs________________________ . 81 

Negative Developers' Assistants_________________________________ . 81 

Negative Notchers--------~------------------------------------ .75 

Negative Splicers---------------------------------------------- . 70 

Pos;tive Daily Assemblers______________________________________ . 75 

Positive Developers' Assistants--------------------------------- . 74 

Positive Release Splicers_______________________________________ . 64 

Printers_______________________________________________________ .81 

Processing and Negative Polishers______________________________ . 70 

Release Inspectors --------------------------------------------- . 70 Rewinders_____________________________________________________ .64 

Sensitometry Assistants--------------------------------------- . 81 

Shift Boss Printers____________________________________________ .93 

Vault Clerks__________________________________________________ .81 

Film Loaders__________________________________________________ .831⁄2 

vVhen any of the above employees work more than thirty-six (36) 

hours in any one week on : ( 1) emergency 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 Foremen (carpenter)---------------------------------- $76. 75 

Electrical Foreman ------------------------------------------------- 76. 75 Gaffer ______________________________________________________________ 68.50 

Floormen (electric)_________________________________________________ 60. 00 Grips ______________________________________________________________ 60.00 

Propertymen (first) ____________________ _____________________________ 60.00 

However, for "stand-by" or "key men", not more than one man 

of each of the above classifications shall be assigned to any one producing unit. 

( f) With respect to all employees listed in paragraphs ( c) and 

( d) of this Section, the foregoing scale of minimum wages 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 

Studio, location, Distant 

hourly rate daily rate location, 

when less weekly rate 

than 1 week 

$2.25 $27. 25 $161. 75 

1. 94 24.00 141. 75 

1.661⁄4 20. 75 121. 75 

1. 40 17.25 101. 75 

1. 331⁄2 15. 75 91. 75 

1. 25 14. 75 86. 75 

1. 161⁄4 13. 75 81. 75 

1. 10 13.25 78.00 

1.00 12. 25 71. 75 

.90 11. 50 66. 75 

.831⁄2 8. 50 61. 75 . 75 8.00 46. 75 • 60 6. 50 37. 75 
228 

WLen the distant location daily rate above is employed, the total 

-n-agc 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. Provisions Regarding "Extras."-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 comn1ittee 

representative of employers, "extra players", and the public, to 

e:ff ectuate 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 effectuating 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 

beina filled from the registered Extra Players. 

( c) Crowds not classified, including racial groups, location crowds 

where transportation is unpractical and crowd assemblies of a public 

nature. 

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 performance and the personal wardrobe required, the minimum for Class 

A " dress " people to be $15.00 per day; provided that, if any " extra 

player" employed as such is required to play a part or bit with 

essential story dialogue, such " extra player " shall not be deemed 

to be an "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 "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 shall be paid to "extra 

players." There shall also be paid to "extra players " for inter-
229 

views and fittings the payments provided for in Order 16-A of 

the Industrial vVelfare Commission of the State of California; 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 day's pay, and if any interview shall 

extend beyond two hours, the "extra player" shall receive an additional one fourth of a day's pay for every additional two hours or 

fraction thereof. 

4. The following shall be provided for by said standing committee 

among the working conditions to be regulated as above provided: 

(a) In Casting Bureaus casting and employment interviews of 

women and children shall be by women casting officials, and men by 

men. 

(b) No one shall be employed as an "extra player " or " atmosphere 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 livelihood, unless the exigencies of production reasonably construed, 

require an exception to be made. And further, no one shall be employed as an " extra player " or " atmosphere worker " on account 

of ,rersonal favoritism. 

( c) A day's work in any State shall be eight ( 8) hours, with overtime as provided by the existing California Statutes 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 day's pay, including overtime. . 

( e) Rotation of work shall be established to such reasonable degree as may be possible and practicable. 

(f) No person not a registered "extra player " shall be requested 

by a studio casting office from any casting agency, and each registered "extra player" shall be provided with a card of identification; 

suitable regulations for carrying out this provision shall be adopted. 

SEc. 4. Provisions Regarding "Free Lance" Players,-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 hundred and fifty dollars ($150.00) or less per week, and shall appoint 

a standing committee representative of employers, "free lance" 

players, and the public, to e:ffe~t~ate the foregoing purposes and to 

interpret the terms of any prov1s10ns made for " free lance " players, 

and to supervise the same, receive and pass on complaints and grievances, and to otherwise aid in e:ff ectuating the foregoing provisions 

subject to review by the Administrator. 

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 may 

be possible and practicable, and minimum adequate compensation 

therefor. 

SEC. 5. Overriding provisions.-If the prevailing wage scale and 

maximum number of hours per week as of August 23, 1933, as fix~d 

23773°-244-92-33-3 
230 

in any agreement or as enforced between the employers and associations of any such employees, however, shall be at a rate exceeding the 

minimum wage scale provided for or less than the number oi:f 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 enforced shall be deemed to be, and hereby are declared to be, the minimum scale of wages and maximum number of hours with respect to 

these aforementioned emplo,yees in such localities under this Section 

of the Code. 

SEo. 6. Child 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 specified 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 0£ 

such child or children upon his compliance with the provisions 0£ 

State laws appertaining thereto. 

B. On and after the effective date of this Code, in the Distribution 

of Motion Pictures: 

SECTION 1. Hours of Employment.-(a) No employee except outside salesmen shall work more than forty ( 40) hours in any one week. 

(b) This provision for working hours shall not apply to professional persons employed in their profession nor to employees in a 

managerial or an executive capacity or in any other capacity of distinction or sule responsibility who now receive more than $35.00 per 

week; nor to employees on emergency or maintenance and repair 

work. 

SEo. 2. Minimrum, Wages.-No employee shall be paid: 

(a) Less than fifteen dollars ($15.00) per week in 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 the 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 

employed within that State. 

C. On and after the effective date of this Code, in the Exhibition 

of Motion Pictures: 

Part 1. Employees Other than 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 whose duties are of 

general utilitarian character, or to emergencies. 

SEc. 3. With respect to employees regularly employed as ticketsellers, doormen, ushers, cleaners, matrons, watchmen, attendants, 

porters, and office help, such employees shall receive not less than a 

twenty percent (20%) increase over 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. With respect to employees regularly employed as ticketsellers, doormen, cleaners, matrons, watchmen, 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-five (35) cents 

per hour in cities and towns having a population of more than 

500,000. 

SEc. 5. "\Vith 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-five (25) cents per hour. 

SEc. 6. (a) Employees associated with organizations of or performing the duties of bill-posters, carpenters, electrical workers, 

engineers, firemen, motion-picture machine operators, oilers, painters, 

theatrical stage employees, theatrical wardrobe attendants, or other 

skilled mechanics and artisans, who are directly and regularly employed by the Exhibitors, shall receive not less than the minimum 

wage and work no longer than the maximum number of hours per 

week which were in force as of August 23, 1933, as the prevailing 

scale of wages and maximum number of hours of labor by organizations of any of such employees affiliated with the American Federation of Labor with respect to their respective type of work 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 bei 

and hereby are declared to be, the minimum scale of wages and 

maximum number of hours with respect to all of such employees in 

such communities in such class of theatre or theatres. 

(b) In the event, however, that there exist in the particular community organizations of such employees above mentioned, mem• 

hers of which were directly and regularly employed by the Exhibitor 

or Exhibitors on August 23, 1933, and which organizations are 

affiliated as above set forth, and ( 1) no prevailing scale of wages 

and maximum number of hours for such employees exist in such 

community with repect 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 labor 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 such disputes shall be determined 

as :follows: 

(1) If the question at issue arises with an organization of such 

employees affiliated with the American Federation of Labor, then 

a representative appointed by the National President of such affiliated organization, together with a representative appointed by the 

Exhibitors, shall examine into the facts and determine the existing 
232 

rmn1mum scale of wages and maximum number of hours 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 a,n 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 representatives 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 American Federation of Labor, and if in said community there exist members of such affiliated organization directly and regularly employed 

by an Exhibitor or Exhibitors, then a representative of such unor_,. 

ganized employees, or, as the case may be, a representative appointed 

by 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 representative appointed by the Exhibitors, shall examine into the facts and 

unanimously determine the existing scale of wages and maximum 

number of hours of tabor for such class of theatre or theatres in 

such particular community, and in the event they cannot unanimously agree upon the same, they shall mutually designate an impartial 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 representatives cannot mutually agree upon such impartial person, then the Adm_inistrator 

shall designate such impartial person; or 

(3) If the question at issue arises with unorganized employees or 

with an organization of such employees not affiliated with the American Federation of Labor and not subject to the foregoing provisions 

of subparagraphs (1) and (2) of paragraph (b) hereof, then a representative 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 the Exhibitors, 

shall examine into the facts and determine the existing minimum 

scale of wages and maximum hours of labor4 for such class of theatre 

or theatres in such particular locality, and in the event they cannot agree upon the same, they shall mutually designate an impl:l.rtial 

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 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 (if 

not more tl1an the hours provided for in this Code) shall not be 

chan aed so as to decrease wages or increase hours. 

( d) In order to effectuate the foregoing provisions of this Section 6 hereof and pending the determination of any disput~ as above 

specified, the' employees herein embr_a~ed and provided for agree that 

they shall not strike, and the Exh1b1tors agree that they shall not 

lock out such employees. 
233 

SEo. 7. In no event shall the duties of any of the employees hereinabove specified in Section 6 (a) directly and regularly employed 

by the Exhibitors as of August 23, 1933, be increased so as to decrease the number of such employees employed in any theatre or 

theatres in any community, except by mutual consent. 

SEO. 8. With respect to any employee not hereinbefore provided 

for1 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 employment, the minimum wage and maximum hours of employment of 

employees performing the duties of musicians shall as heretofore 

oo 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 Motion Picture 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 any determination of any dispute pursuant to Section 6 of Part 1 of Division O of this Article IV. 

Part 2. Actor Employees in Vaudeville and Presentation MotionPicture Theatres. 

SECTION 1. Definitions.-(a) Presentation and vaudeville shall include both permanent and traveling companies of arti~ts playing 

presentation and vaudeville houses, but is not intended to include: 

amateur shows " rep " shows " tab " shows " tent " shows " waaon " 

' ' ' ' p. Shows "truck" shows "medicine" shows " show-boat" or ' burlesg,ue ' ", as these terms ' are understood in ' the theatre. 

( b) A " traveling " company, as used in this Code, means a company which moves from theatre to theatre irrespective of locality. 

SEc. 2. Auditions-(a) Principals.-It shall be an unfair trade 

practice for any Exhibitor or independent contractor under the guise 

of public audition to break in, try out, or to require a performer to 

render service for less than the minimum salary established by this 

Code. This shall not prohibit, however, the appearance or participation of any performer in benefit performances which have been 

approved by the performer or by any bona fide organization of the 

performer's own choosing. 

(b) 0 horus.-lt 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 the chorus or participation in 

benefit performances which have been approved by the chorus or 

any bona fide organization of the chorus' own choosing. 

SEc. 3. Rehearsals-(a) Principals.-Reheursal period for principals shall be limited to four weeks, and they shall be guaranteed 

two consecutive weeks' compensation for employment for said four 

weeks of rehearsals, which shall immediately 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, to principals owning their own acts. 
234 

(b) 0 horus.-N o exhibitor or independent contractor shall require 

for an engagement of only one week any chorus person to rehearse 

in excess of five ( 5) days, nor for an engagement of two or more 

weeks to rehearse in excess of two (2) weeks. Any such engagement shall follow i1nmediately such respective rehearsal periods. The 

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 employment. 

SEc. 4. MaoYhnum Hours a;nd Minimwrn Wages-(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 distinctive ability who cannot be replaced, it is recognized that it is impossible to fix the maximum hours per week of artists appearing in 

such theatres. 

(1) For performers with more than two years' theatrical experience, there shall be a minimum wage of forty dollars ($40.00) 

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 o-f/erformers employed on a per diem 

basis shall be seven dollars an fifty cents ($7.50) per day net. 

(b) Ohorus.-No singing or dancing chorus person shall be required to work more than forty ( 40) hours in any week, and there 

shall 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 presentat10n, 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 free day shall not apply to travel- ' . 1ng 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 additional chorus persons, such additional chorus persons shall not rehearse 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 commission to any agency 
235 

{whether such fee is paid by the Exhibitor or independent contractor 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 

pay each chorus person not less than three dollars ($3.00) per day 

for each day of lay-off. In connection with a traveling unit after 

the first two weeks of consecutive employment, 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 West of the Rockies, and one day's traveling 

without pay for each four weeks of employment East of the Rockies. 

(7) Wherever 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 the 

maximum hours, said higher wage and lesser number of hours shall 

be deemed to be, and are hereby declared to be, the minimum scale 

of wages and maximum hours of labor with respect to such theatres 

in this Section of the Code. 

SEo. 5. General Provisions.-(a) If in any city or place where by 

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 for said extra 

performances pro rata. 

SEc. 6. Chorus Transportation.-(a) Transportation of the chorus 

when required to travel, including transportation from point of 

organization and back, including sleepers, shall be paid by the employer 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 transportation and sleeper of the chorus and baggage back to the point of 

origin whether the chorus returns immediately or not. 

SEc. 7. Wardrobe-(a) Principals.-The Exhibitor or independent 

contractor shall furnish to every 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) Ohorus.-The E xhibitor or independent contractor shall furnish the chorus, without charge, with all hats, costumes, wigs, shoes, 

tights, and stockings and other necessary stage wardrobe. 

SEo. 8. Arbitration.-(a) Arbitration of all disputes under this 

Section of this ARTICLE of the Code shall be in accordance with 

the arbitration provisions of this Code as hereinafter generally provided. 
236 

SEc. 9. Child Labor.-(a) On or after the effective date of 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 provides 

a higher minimum age, no person under the age specified by said 

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 hearing and with the a:pproval of the Administrator prescribe rules and 

regulations governmg the relations between Exhibitors and independent contractors guilty of any such violations. 

ARTICLE V-U NF A.IR PRACTICES 

A. GENER.AL 

Part 1. The defamation of competitors by falsely imputing to 

them dishonorable conduct, inability to perform contracts, questionable 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 deemed to be an unfair trade practice. 

Part 2. The publishing or circularizing of threats or suits or any 

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. 

Part 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 

the approval of the Administrator, to investigate whether in any 

case 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 Authority shall have the power, with 

the approval of the Administrator, to impose 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 validity or enforceability 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 rendering his exclusive services in 

connection with the production of a " legitimate " drama or musical 

comedy for the purposes of securing the services of such author, 

dramatist, or actor. 

Part t. 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 affiliated companies), to conspire, agree, or take joint action 

to prevent any responsible Producer or Producers from renting such 

studios or studio facilities. 

Part 3. It shall be an unfair trade practice for a Producer to 

knowingly employ as an " extra " any member of the immediate 

family of any employee or any person who is not obliged to depend 

upon "extra" work as a means of livelihood, unless the exigencies 

of production require an exception to be made. 

Part 4. SECTION 1. No Producer, directly or indirectly, shall transact any business relating to the 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 arry employee o:f any 

Producer any gift or gratuity to influence the action of such employee in relation to the busin°ss 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 o.f employment, 

whether oral or written; 

( c) knowingly to have made any materially :false representation 

to any Producer in negotiations with such Producer :for or affecting 

the employment or contemplated employment of any person represented by such agent; 

( d) to have violated or evaded or to have attempted to violate 

or evade, directly or indirectly, any of the provisions of Parts 4 or 

5 o:f 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 Section 3 of this Part, or to have transacted busine,ss 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 whom 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 Administrator. 

SEC. 3. In order to effectuate this Part, the Agency Committee may 

recommend to the Administrator uniform terms and conditions for 

and an appropriate procedure for the registration o:f all agents with 

whom Producers may transact business relating to the production of 

motion pictures, and for the suspension, revocation, or cancellation of 

any such registration and appropriate rules and regulations affecting 

the agents as provided for herein. Such recommendations o:f the 
238 

Agency Committee, together with the recommendations of the individual members thereof, shall be submitted in writing to the Administrator, 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 o:f the right 

of registration without affording such agent a full and fair opportunity 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 transacting 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 Administrator, s€t up rules of fair 

practice governing relations between Producers and agents, writers, 

actors, dir€ctors, and technicians. 

SEc. 5. The Agency Committee shall make findings o:f fact concerning any matter coming before it pursuant to the provisions of this 

Part and shall make such recommendations to the Administrator 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 hearing or proceeding shall be conducted 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 Administrator, 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 further 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 furnish 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 "agent" as used herein shall apply to any person ( 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 in 

connection with the production of motion pictures. 

SEc. 9. The 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 in any way be financially interested in or connected with 

the business of an agent as herein defined, without making known 

such fact to the Agency Committee within twenty (20) days from 

the effective date, or if such 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 disclosure 

to be made of such interest as it may deem advisable; and the Agency 

Committee may make such further rules in connection with the subject matter 0£ this Section as it sees fit, subject to the 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 proceedings 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 Committee 

shall be sent to the A lministra.tor, the same shall be made public 

in such manner as may be determined by the Administrator. 

P(JY}"t 5. SECTION 1. No Producer, 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 anything 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 contrart 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 

£or or to any employee under written contract to any other Producer 

prior to the last thirty (30) days of the term of the contract 0£ 

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 picture. 

(b) Employees under written contract, for a period, inclusive of 

options, if any, of less than one year, whose compensation is not less 

than $250.00 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 week ( 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 Producer 

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 herein before 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 employees '" ho are engaged to render services of an artistic nature in 

connection with one or two pictures only, unless the actual period of 

employment of any such employee is intended to or shall cover a 

minimum period of one year. 

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 registered as hereinafter in Section 6 provided, then on the same day 

such off er is made, the Producer making such offer shall notify the 

employing Producer in writing that such offer has been made, and 

shall state the full and complete terms and conditions thereof, including particularly the compensation, the proposed period of employment, 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 :iff orded 

a reasonable opportunity, not exceeding three (3) days, to be determined 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 off er he will accept. Any offer made by any Producer and reported to the 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 negotiate as herein provided for. 

The notice hereinabove provided for need be given, however, with 

reference to employees classified in subdivisions (b) and ( c) of Section 2, only upon the condition that prior to the last thirty (30) 

day period of employment the employing Producer shall have made 

an off er in good faith to such employee for 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 subdivision ( 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 employing Producer and the Registrar in like manner as is 

provided for in Section 3. The same procedure, rules, and conditions 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 reasonable period not exceeding three (3) days within which to negotiate 

and contract for the services of the employee in question ; 

(b) the offer o:f the second Producer shall continue as a firm off er 

: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 o:f termination of the first employment in all cases where the. compensation 

for the employee in connection with the former employment was at 

the rate o:f 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 in excess o:f the above amounts, the 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 o:f any offer made by the employing Producer; so as to 

entitle such Producer 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 committee or by the Code Authority on its own motion or on application of any interested party. 

The Registrar shall provide an appropriate method whereby all 

Producers may ascertain in each instance when, and the period during which, notices of offers are to be transmitted to the employing or 

former employing Producer. Said Registrar shall also prescribe the 

procedure so as to prevent any employing 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 o:f any persons with whom any other 

Producer desires to contract shall not be unreasonably delayed or 

prevented. In such connection the Registrar shall have power in 

any instance to desig-nate a reasonable period, in no event to exceed 

three (3) days, within 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 Part shall apply only to employees whose names 

are registered with the Registrar by the employing 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 reason whatsoever 

of the employment of any person whose name is registered, the former employing Producer shall notify the Registrar in writing forthwith of such termination. Any Producer may withdraw from registration 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 registering 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 the employee. The Registrar shall provide an appropriate method for notifying all Producers promptly of all registrations, withdrawal of registrations, terminations of employment and 

waivers. 

SEC. 7. If the Code Authority, or any committee appointed by it 

for that purpose, after notice and hearing shall find that any employee 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 Administrator, 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 designated 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 produced 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 testimony 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 connection 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 the provisions of this Part and the Code Authority 

so finds, and 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 produced by any such offending Producer. Due notice of the ruling of 

the Code Authority, as approved by the Administrator, shall be published in such manner as the Code Authority 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 indirectly of any money inducement or advantage of any kind to any 

employee of any other cartoon Producer in an effort to entice, persuade, 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 another in such manner that the use of the adapted character shall constitute an appropriation by him of the goodwill of the creator. 
243 

0. PRODUCERS-DISTRIBUTORS 

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 upon such work may be publicly 

exhibited, it shall be deemed to be an unfair trade practice for any 

Producer or Distributor to permit the public exhibition of such 

motion picture prior to such date. 

Pa1·t 2. (a) It shall be deemed to be an unfair trade practice 

for any Producer or Distributor, by any of its employees or through 

other persons who have a direct or indirect interest, whether financial 

or otherwise, in any such Producer or Distributor, to knowingly 

and intentionally directly or indirectly interfere with existing relations between an outside or associated Producer and a Producer or 

Distributor, or to do anything to alienate or entice any 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 Distributor, or to 

secure a change in the terms and conditions of any existing contract 

between any such outside associated Producer and a Producer or 

Distributor. 

(b) To effectuate the foregoing1 no Producer o,r Distributor shall 

negotiate with or make any offer tor or to any such outside or associated Producer at any time prior to sixty (60) days before the termination of any existing agreement between such outside o,r 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 

Distributo,r with whom it has contractual obligations, whichever 

date is earlier. 

D. DISTRIBUTORS 

Part 1. No Distributor shall threaten or coerce or intimidate 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 to build or otherwise acquire a 

motion picture theater for operation in competition with such Exhibitor, but nothing in this ARTICLE shall in any way abridge 

the right of a Producer or Distributor in good faith to build or 

otherwise acquire a motion picture theater in any location. 

Part 2. 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, however, that an employee of a Distributor shall not be deemed to have 

an interest in any theater affiliated with such Distributor. 

Part 3. (a) No Distributor shall substitute for any feature motion picture described in the contract therefor as that of a named 

star or stars, or named director or named well-known author, book, 

or play one of any other star or stars, director, author, book, or play, 
244 

nor shall suci1 Distributor substitute any other feature motion pic- ture for one "TT"hich ip. the contract therefor 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 Distributor from changing the title of any motion picture contracted for, from making changes, alterations, and adaptations 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 another 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 nontheatrical 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, orphanages, etc. 

Part 5. No Distributor shall require as a condition of entering into 

a contract for the licensing of the exhibition of feature motion pictures that the Exhibitor contract also for the licensing of the exhibition 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 which 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 knowingly 

permit to b-e 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 grievance 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 Exhibitor shall have fully and completely performed all the 

terms and conditions of such license on the part of the Exhibitor to 
245 

be performed. Any dispute or controversy concerning any such adjustment shall be determined by a Local Grievance Board provided 

for in this Code. 

Part 9. (a) No Distributor shall require any specific day or days 

of the week for the exhibition of specified pictures or class of pictures unless specifically provided for in the Exhibitor's contract therefor and in no event if the license fee therefor is a fixed sum only. 

(b) Where under an exhibition contract which provides that the 

rental to be paid by the Exhibitor for any feature motion picture 

specified therein shall be determined in whole or in part upon a percentage basis, and that said picture shall be played by the Exhibitor 

upon a designated day or days of the week and the Exhibitor seeks 

to be relieved from the 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 unsuitable for exhibition at the Exhibitor's theatre on such day or days, 

the claim of the Exhibitor shall be determined by the Local Grievance Board provided for by this Code, and the Distributor, if such 

Local Board so determines, shall relieve the Exhibitor from the 

obligation to play the motion picture upon the day or days designated by the Distributor; provided that the Exhibitor makes such 

claim within three (3) days after receipt of the notice of availability of such feature picture. In such cases the said Local Board 

shall proceed to determine the matter upon forty-eight ( 48) hours' 

notice if the Distributor so desires. 

( c) If the said Local Board shall sustain the claim of the 

Exhibitor: 

(1) the Distributor shall have the right to designate for the same 

day or dates another motion picture licensed upon a percentage basis 

upon the same or similar terms as the motion picture in question, 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 days of 

the week; and (2) the award of the said Local Board shall not be 

deemed to apply to any other theatre in the same way or any other 

location. 

( d) Where because of a proceeding before a Local Grievance 

Board, or because of an award of such Local Board, it shall be impractical to serve subsequent-run Exhibitors in compliance with 

any notice of availability or confirmed play dates given any such 

subsequent-run Exhibitors, the Distributors shall have the right to 

change such play dates. 

Part 10. No Distributor shall refuse to deliver to any Exhibitor 

any feature motion picture licensed under an exhibition contract 

therefor because of such Exhibitor's default in the performance of 

any exhibition contract licensing the exhibition of short subjects of 

such Distributor, or vice versa, provided such Exhibitor has agreed 

to arbitrate all claims and controversies arising under all existing 

Optional Standard License Agreements between them. 

Part 11. (a) If any Exhibitor has contracted to exhibit more than 

fifty percent ( 50%) of the total number of motion pictures announced for release during any given season by a Distributor and 

such Distributor shall during such season generally release any 

feature motion picture in a_ddition to th! number so announced, 
246 

such Distributor shall first offer to the Exhibitor 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%) of the number of motion 

pictures announced for release by a Distributor during any given 

season, and the Distributor shall generally release during such season 

any feature motion picture in addition to the number so announced, 

such Distributor shall first off er 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 exhibition contracts between such Exhibitor and Distributor and is not 

in default thereunder. 

Part lf. In each territory wherein any Distributor maintains an 

exchange, such Distributor shall abide by the regulations promule;ated by the Code Authority for the prevention of fire, for the holding 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 

hazards. 

E. EXHIBITORS 

Part 1. Any Exhibitor 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%) 

of the 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 f. 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, 

with the intent and effect of depriving a competing Exhibitor from 

contracting to exhibit such excess number of motion pictures, provided, 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 num.ber 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 

pictures. 

Part 3. SECTION 1. No Exhibitor shall (a) lower the admission 

prices publicly announced or adverti ed 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 directly or indirectly 

lower or tend to lower such announced admission prices and which 

are unfair to competing Exhibitors, or which deceive the public; or 

(b) fail at all times to maintain the minimum price of admission 

specified in any contract licensing the exhibition of any motion picture 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 

the provisions of Section 1 of this Article in those areas as shall be 

defined by each Local Clearance and Zoning Board, where the Exhibitors operating not less than seventy five percent (75%) of the 

number of the then actively and continuously operated theatres not 

affiliated with Distributors or Producers and the Exhibitors operating not less than seventy five percent (75%) of the number of the 

then actively and continuously operated theatres affiliated with Distributors 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 case any Exhibitor is found after notice and hearing by 

a Local Grievance Board provided for in this Cocle, to have violated 

any provision of this part, and if such Local Board shall on account 

thereof declare that such Exhibitor shall not be permitted to license 

the exhibition of any motion picture unless the Exhibitor ceases and 

desists from such violation, the Local Grievance Board shall have 

power to direct that Distributors of motion pictures shall refuse to 

enter into license contracts for the exhibition of their respective 

motion pictures by such Exhibitor and shall refuse to make further 

deliveries of motion pictures to such Exhibitor under license agreements 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 

Exhibitors in any area as above in this Part 3 defined ruling out 

the giving of rebates as defined in Section 1 hereof, such ruling 

shall not become effective until ninety ( 90) 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 

purpose of avoiding 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 and 

determined by a Local Grievance Board, and the findings of such 

Board shall be binding upon all parties concerned. 

Part 5. (a) No Exhibitor licensed to exhibit a motion picture 

subsequent to its exhibition by another Exhibitor having the right 

to a prior run thereof shall advertise 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 an unfair hardship on him, the Local Grievance 

Board shall have the right to hear such complaint and after determination of the facts presented shall fix and specify the time 

limit within which such Exhibitor may advertise such motion picture; 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 he 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 further, 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 Exhibitor from advertising generally all of the feature motion pictures 

licensed for exhibition by such Exhibitor as a group, but such general 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 excepting as hereinabove 

provided. 

Part 6. To prevent disturbance of the continued possession of a 

theatre by an Exhibitor, it shall be an unfair trade practice for any 

person engaged in the motion picture industry knowingly and intentionally, directly or indirectly, to interfere with pending nego- tiations between such Exhibitor and any other party pertaining to 

or affecting 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 a,greement affecting 

the same, for the purpose of preventing the consun11nation of such 

negotiations so as to deprive such Exhibitor of the continued operation, 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 therefor under the license 

agreement. 

F. DISTRIBUTORS-EXHIBITORS 

Part 1. The so-called Optional Standard License Agreement 

(1933) negotiated by Exhibitors and now being used by a large number of Distributors shall be the form of license contract to be used 

by Distributors for licensing the exhibition of motion pictures, unles:; 

the parties mutually agree that a different form be used, and 

excepting that in case any condition or pro.vision thereof is in conflict 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 provision o.f this Code, it 

being the intention that the provisions of this Code shall govern. 

Individual Distributor sales policy provisions may be inserted in the 
249 

Schedule of such form but shall not be contradictory of a.ny pro.visions 

thereof. 

Part 13. (a) The arbitration of all disputes between Exhibitors 

and Distributors arising under any exhibition contract, if the parties 

shall agree on arbitration, shall be in accordance with the optional 

arbitration clause of the so-called Optional Standard License Agreement, provided for in this Code, except as the provisions of such 

clause may be modified by the provisions of this Code. 

(b) By stipulation of the parties to any dispute growing out of 

an exhibition contract, the number of arbitrators to be appointed 

by each party may be reduced to one, with power in the two thus 

appointed, if they cannot agree upon an award, to appoint an umpire 

as provided in said optional arbitration clause. 

Part 3. No Exhibitor or Distributor shall induce or seek to 

induce the breach of any subsisting contract licensing the exhibition 

of motion pictures. 

Part 4. No Exhibitor or Distributor shall give any gratuity or 

make any offer of any gratuity for the purpose of procuring advantages 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 disclosures 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 the Exhibitor 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 the 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 : 

(1) The Exhibitor shall give to the Distributor written notice of 

each motion picture to be excluded within fourteen (14) days after 

the general release date thereof in the exchange territory out of 

which the Exhibitor is served. 

(2) The Exhibitor may exclude without payment therefor 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 not 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, such payment shall be credited against such tenth or succeeding tenth motion 
250 

picture, as the case may be, which 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 Exhibitor shall be liable for and 

pay to the Distributor the license fees of all motion pictures 

theretofore excluded. 

( d) If the license fee of any feature motion picture specified in the 

license agreement is to be computed in whole or in part upon a percentage 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 exhibited upon a percentage basis at such theater during said period, 

average the license fees of all feature motion pictures exhibited upon 

a percentage basis at such theater during 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 Exhibitor'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 exhibited 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 thirty (30) operating days preceding the Exhibitor's notice 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 hereunder, 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 

therefor 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. Clearance and Zoning 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 prescribed 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, and one of 

whom shall be an unaffiliated Exhibitor; and two representatives of 

subsequent-run unaffiliated theatres operating within such territory; 

and one person approved by the Administrator who shall have no 

direct or indirect affiliation with any branch of the motion-picture 

industry 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. 

SEc. 3. Each Local Clearance and Zoning Board shall, 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 the 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 the parties to such contra~t. 

SEc. 4. Each Board when making any classification of theatres, or 

when fixing the maximum period or area of clearance in respect of 

any theatre shall, among other things, consider and give due regard 

to the following factors : 

(a) that clearance to a very considerable extent determines the 

rental value of motion pictures; 

(b) that exhibitions of the same motion picture within the same 

competitive area at too short an interval after the conclusion of a 

preceding run or runs thereof by unduly restricting the competitive 

area in which clearance is limited, depreciates the rental value of 

motion pictures; and 

( c) that all such depreciations of the rental values of motion pictures tend to reduce the number of motion pictures produced, discourages the production of motion pictures of quality involving 

large investments of capital, labor, skill, and 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 theaters. 
252 

( f) that unreasonable clearance as to time and area diminishes the 

potential revenue to the Distributor from the subsequent-run Exhibitor. 

SEc. 5. The decision of each Board upon any question shall be 

determined by a majority vote, but in case the Board is evenly divided, such question shall be submitted for determination to the impartial representative of the Code Authority, who is provided for 

1n Section 2 of this PART. The decision of the Board and/or the 

impartial representative, as the case may be, shall be in writing. 

SEo. 6. It shall be the duty of each such Board to promptly publish the schedules formulated by it, and file a copy thereof immediately 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 notice of the 

time, place, and manner of hearing. The Board shall make its decision within fifteen ( 15) days from the filing of the protest, or 

within three (3) days after the parties shall have been fully heard, 

whichever date 1s sooner. Any party aggrieved by the decision 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 protest, with all 

evidence taken before the Local Clearance and Zoning Board, shall 

be referred to the Code Authority. 

(b) All persons interested in the decision shall have the right to 

a.ppear before the Code Authority and present additional evidence. 

The Code Authority, after investigating such protest and reviewing 

the evidence theretofore taken and considering the additional evidence, if any, shall promptly render its decision, and not later than 

fifteen (15) days from and after the date of the hearing upon the 

appeal. The requirement as to the various steps herein prescribed 

shall be mandatory in order to give full relief before the buying 

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 Distributors 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 

perf orrned 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. 

P{l;'f't 13. Grievamoe Bo(lff'ck.-SECTION 1. The complaint of any Exhibitor that a competing Exhibitor has committed any of the acts 

set forth in the following paragraphs (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 adoption of an unfairly 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 Exhibitor. 

( 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. Ea.cb. such complaint shall be in writing and made immediately 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 impartial consideration of all of the facts presented, a full, expeditious 

and complete hearing of all 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, 

~hall make a prompt determin ation of each complaint submitted to it. 

SEC. 3. 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 findings of fact in such regard. The Local Grievance 

Board upon the facts found shall make 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 

Exhibitor unless the Local Grievance Board shall find as a fact that 

the eomplaining Exhibitor is able, ready, and willing to fully carry 

out and comply with all vf the terms and conditions which may be 

fixed by the Local Grievance Board as a condition for making the 

award, which terms and conditions shall in no event be less favorable 

to the Distributor concerned than those contained in the license contract of the Exhibitor complained of, including the Distributor's loss 

of revenue, if any, resulting from the elimination of or reduction 

of revenue from any subsequent run or runs made necessary by such 

award, and such other terms and conditions as the Local Grievance 

Board may prescribe. 

SEC. 4. All complaints and grievances of Exhibitors or Distributors concerning provisions of this Code or otherwise and not specifically designated to be heard or passed upon in the first instance by 

the Code AuthoritJ' 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; otherwise such complaint or grievance shall be dismissed with a right of 

appeal from such dismissal to the Code Authority. Such proceedings before the Local Grievance Board and before the Code Authority shall be within the periods of time hereinafter prescribed in 

Sections 6 and 7 hereof. 

SEC. 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 

Grievance Board shall have jurisdiction to hear or determine any 

complaint by any Exhibitor based upon the fact that a Distributor 

has licensed the motion pictures distributed by it for exhibition at 

theatres affiliated with such Distributor. 

SEc. 6. (a) There shal'l 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 affiliations and 

one of whom shall be a Distributor without circuit theatre affiliations"' and two representatives of Exhibitors, one of whom shall be 

an atllliated Exhibitor, if there be one, and one of whom shall be an 

unaffiliated Exhibitor, and one person who shall have no direct or 

indirect affiliation with any branch of the motion picture industry, 

who shall be approved by the 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 submitted to it shall be determined by a majority vote, but in case the 

Board is evenly divided, such question shall be submitted for determination to the impartial representative of the Code 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 fil'ing of the protest, grievance, or complaint, 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 Co<le 

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 the determination of such appeal, the determination 

order or other action of the Local Grievance Board shall be stayed. 

(c) Any party aggrieved shall have the right to appear before the 

Code Authority and present additional evidence. The Code Authority, 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 than fifteen (15) 

days from and after the date when the 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 executed 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 engaging 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 Grievance Boards shall be persons 

of good repute and of good standing in the industry, and shall upon 

acceptance of appointment subscribe and file with the Administrator an oath to fairly and impartially determine whatever issue is 

presented to the Board to which such member has been appointed. 

No such Board shall contain in its membership more than one representative of any Distributor or Exhibitor. 

Part 4. If a member of any Board provided for by this Article 

VI ceases to belong to the class he represents upon such Board, his 

membership shall terminate, and the Code Authority shall fill the 

vacancy so caused by designating a representative of the same class. 

ARTICLE VII-GENERAL TRADE POLICY PROVISIONS 

Part 1. The industry pledges its combined strength to maintain 

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 by and within the industry to assure the attainment of such purpose. 

Part 93. The industry pledges its 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 within the industry to assure the attainment 

of such purpose. 

ARTICLE VIII-MrscELLANEous PRovrsroNs 

Part 1. Any Exhibitor forwarding or delivering to another Exhibitor a print of a motion picture at the 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 93. (a) Wherever in this Code arbitration of any matter is 

provided for, other than arbitration as provided in the Optional 

Standard License Agreement ( 1933) or as may be otherwise specifically provided for, such matter shall be submitted for determination to an Arbitration Board. Such Arbitration Board shall consist of four ( 4) members. Each of the groups concerned in such 

matter shall appoint two 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 making 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 o:£ 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-day period. 

(b) Within five ( 5) days from the mailing of such request for 

arbitration, or within twenty-four (24) hours i:£ 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 arbitrator 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 arbitrator may be appointed by the other group as the case may be. 

( c) No member of an Arbitration Board shall hear or determine 

any controver y in which he has an interest, direct or indirect, and 

any member having such interest shall be disqualified 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 who 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 hearing before the umpire. If the arbitrators or a majority of them are 

unable to agree upon the selection of an umpire, the Admi~istrator 

shall upon request make such selection. 

Part 3. Nothing in this Code shall be deemed to apply to the production, distribution, or exhibition of motion pictures on film of 

recognized substandard widths, or to slide films, or to nontheatrical 

motion pictures designed primarily for educational, scientific, industrial, commercial, advertising, selling, or other nontheatrical purpose, or to television of motion pictures, provided that the c01nmercial 

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 competition to an established motion-picture theatre or theatres. If found 

to be unfair competition, the Code Authority shall promulgate rules 

and regulations governing such unfair competition. 

Pa1·t 4. The provisions o:£ this Code shall be separable. 

ARTICLE IX-1t1ANDATORY AND AME TDING PROVISIONS 

Pa1·t 1. This Code and all the provisions thereof are expre sly made 

subject to the right of the President, in accordance with the provision 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 Tifie 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 upon his approval thereof. 

Part 2. 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 eliminated as changes in circumstances or experience may indicate. It is 

contemplated that from time to time supplementary provisions to 

this Code or additional codes will be submitted for the 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 consistent with the provisions hereof. 

Approved Code No. 124 

Registry No. 1639-03 

0 


UNIVERSITY OF FLORIDA 

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