Approved Code No. 124-Amendment No.4 Registry No. 1639-03 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

MOTION PICTURE INDUSTRY 

AS APPROVED ON MARCH 11, 1935 

WE DO OUR PA.Rl 

U.S. DEP~TOR''{ 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON: 1935 

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Approved Code No. 124-Amendment No. 4 

AMENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

M·OTION PICTURE INDUSTRY 

As Approved on March 11, 1935 

ORDER 

APPROVING AMENDMENT OF CoDE OF FAIR CoMPETITION FOR THE . MOTION PICTURE INDUSTRY 

An application having been duly made pursuant to and in full 

compliance with the provisions of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approval of amendments to the Code of Fair Competition for the Motion Picture Industry, which amendments are annexed hereto1 and hearings having 

been duly held thereon, and the Deputy Administrator having rendered his report containing an analysis of the said amendments, 

together with his findings and recommendations with respect thereto, 

which said report, recommendations and findings are annexed 

hereto: 

NOW, THEREFORE, on behalf of the President of the United 

States, the National Industrial Recovery Board, pursuant to authority vested in it by Executive Orders of the President, including Executive Order No. 6859, dated September 27, 1934, and otherwise 

does hereby approve and adopt the said report, recommendations and 

findings, and does further find that said amendments and the Code 

as constituted, after being amended comply in all respects with the 

pertinent provisions and will promote the policy and purposes of said 

Title of said Act, and does hereby order that said annexed amendments be and they are hereby approved, and that the previous 

approval of said Code is hereby modified to include an approval of 

said Code in its entirety as amended. 

NATIONAL INDUSTRIAL RECOVERY BOARD, 

By ,¥. A .. HARRIMAN, Administrative Officer. 

Approval recommended : 

SoL A. RosENBLATT, 

Division, Administ1·ator. 

WASHINGTON, D. c., 

March 11, 1935. 

120694°----1603-54----35 (1) 
REPORT TO THE NATIONAL INDUSTRIAL RECOVERY 

BOARD 

NATIONAL INDUSTRIAL REcoVERY BoARD, 

National R ecove?"Y Adn~inistration, 

Washington, D. 0. 

GENTLEMEN: This is a report on twelve proposed amendments to 

the Code of Fair Competition for the Motion Picture Industry. 

An application was duly made by the Code Authority on behalf of 

the Industry for approval of these amendments, and a public hearing was held on December 19, 1934, in the small ballroom of the 

Willard Hotel in Washington, D. C., after due notice of such 

hearing had been given. Every person who requested to be heard 

was given an opportunity to state his views in accordance with the 

requirements of the National Industrial Recovery Act. · 

Various portions of the Code are proposed to be amended and 

the amendments are accordingly treated separately herein. 

I. The purpose of the amendment to Article I is to reduce the 

administrative difficulties. The number of members of the Industry in Hawaii and Puerto Rico is small, their problems are different 

from those in the Industry on the mainland and it is impracticable 

to adlninister the National Code there or form the Boards set up 

under the Code to settle the problems that arise. A proposed Code 

is under consideration in both Hawaii and Puerto Rico and the 

Industry in those territories is best qualified to formulate a Code 

particularly designed to meet their peculiar requirements rather 

than have the provisions of this Code applicable to them. The 

amendment complies in all respects with the pertinent provisions of 

Title I of the National Industrial Recovery Act and will tend to 

effectuate the policies thereof. 

II. The purpose of the amendment adding Section 12 to Article 

IV, Division C, Part 1, is to deter attempts to frustrate the spirit 

and intent of the Code and the National Industrial Recovery Act. 

The Code, in certain of the labor provisions contained therein, prescribes maximum hours of employment and minimum rates of pay 

for the majority of the more than 300,000 employees of the Industry. Since the Code has been in effect, certain employers, in treating with employees covered by Article IV, Division C, Part 1, have 

devised plans with the intent to defeat these provisions of the Code. 

Exhibitors have in some cases contracted with third parties, for the 

services of theatre employees, for the definite purpose of avoiding 

payment of Code wages or being bound by Code hours since they 

do not come in under the definition of members of that Industry 

and are not bound by the provisions of any other Codes. The third 

party, or independent contractor, who agreed to furnish persons to 

perform the services, in many instances refused to comply with the 

Code and actually worked his employees more hours and paid them 

(2) 
3 

less wages than provided in the Code. The amendment provides 

that Exhibitors who contract for such services in the future must 

require the contractor to agree in the contract to pay the wages 

and observe the hours set forth in the Code. This amendment affects 

approximately 75,000 employees engaged in this type of work, and 

will result in the employment of persons not now employed since 

additional persons will be required to perform services by reason 

of the curtailed working hours of those who are now performing 

such services without observance of Code provisions. The amendment will also add to the purchasing power of those employees who 

are now performing such services, since, in the majority of instances 

in which independent contractors have furnished the labor, less than 

Code wages have been paid as compensation. The amendment will 

also definitely tend to improve the standards of labor of this type 

of employee. 

III. The purpose of the amendment to Article IV, Division C, 

Part 2, Section 1, is to make a deletion for clarification purposes 

only. This amendment does not constitute a substantive change 

since the Code specifically limits the definition of " Presentation 

and Vaudeville" to" Permanent and travelling companies of artists 

playing presentation and vaudeville houses", but the definition in 

the Code continues by providing that such presentation and vaudeville was not intended to include "rep shows, tab shows, tent shows, 

wagon shows, truck shows, medicine shows and show boats." No 

difficulties have arisen with regard to these excluded types of shows, 

nor is the amendment designed to include them within the Code at 

the present time. However, some presentation and vaudeville companies have adopted such names as "tab shows" or "show boats" 

and sought by such means to escape compliance with the Code. The 

employers of performers in these companies, who have sought by 

these means to defeat the purposes of the Code, are actually the 

"presentation and vaudeville companies" referred to and described 

in the Code provisions as they now exist. There is now here in 

existence specific definitions of the various terms used in describing 

the types of shows exempted from the Code provision except that 

the Code provision itself defines the terms "as these terms are understood in the theatre." The definition resulted in considerable 

confusion and subterfuge. The Code as constituted after being 

amended by the deletion of these words covers no group that was 

not adequately represented before approval of the Code, since" Presentation and Vaudeville" is still defined by the Code as "Permanent and travelling companies of artists playing presentation 

and vaudeville houses" and all such companies were intended to be 

covered by the Code and should be subject to it now. The amendment will improve the standards of labor of the employees in those 

shows in which the employer used one of the above mentioned terms 

to circumvent compliance with the Code, since the object in the 

use of such terms was to pay the employees less than the minimum 

wages and to require the performers to work more than the maximum 

hours provided in the Code. The amendment will also increase 

the purchasing power of the employees referred to above, and will 

tend to make necessary the employment of peTsons not now 

employed. 
4 

IV. The amendment to Article IV, Division C, Part 2, Section 

B (a), is for the purpose of more adequately providing compensation 

for principal performers in vaudeville and msuring to them a fair 

wage for rehearsal periods which extend beyond what is generalll. 

considered to be a reasonable time within which to perfect an ac . 

The amendment provides for the payment to principals of one-half 

of the weekly wage of such principal for each week or part thereof 

that the rehearsal extends beyond two weeks. In numerous instances 

principals have been required to rehearse long or unreasonable periods, and this amendment is designed to provide compensation for 

such principals in such instances. It is difficult to estimate the 

amount of increased wages that will result from the approval of this 

amendment because efforts will be made by employers to perfect and 

book acts within the two weeks period. However, there will be increased wages in some instances that will increase the purchasing 

power of those principals who are required to rehearse more than 

two weeks and who have heretofore not been compensated for such 

period, and the amendment will also improve the standards of labor 

of these persons. 

V. The amendment to Article IV, Division C, Part 2, Section 4 (a) 

(3), provides for the payment of $7.50 net in cash per day to performers employed on a per diem basis for each theatre in which such 

performer appears. The original Code provision for which this 

amendment is proposed as a substitute provided for a $7.50 per diem 

rate and was intended to accomplish the same result as the amendment, but it has been found that certain performers were thereafter 

required by their employers to play in more than one theatre in a 

single day and that the Code provision as worded was not sufficiently 

clear to indicate this intention of the original provision. In a sub-

~equent provision of the Code, applicable to principals, it is provided 

that " Owing to the peculiar nature of the stage presentation and 

vaudeville business and the conditions prevailing there~n, the changing nature of the entertainment " etc. " it is recognized that it is 

impossible to fix the maximum hours per week of artists appearing 

in such theatres." Since no maximum hours are fixed, the injustice, 

of permitting employers to require that principals appear in more 

than one theatre in one day and be compensated only the minimum 

rate, is apparent. The amendment will definitely improve the standards of labor of the performers who are not required to perform in 

more than one theatre and will increase the purchasing power of 

those performers who may, after approval of the amendment, be 

required to perform in more than one theatre in the same day and 

who have heretofore not been compensated for such extra services. 

VI. The amendment to Article IV, Division C, Part 2, Section 

4 (b), which deletes the last sentence in the first paragraph and 

inserts in lieu thereof the proposed amended provision, provides 

that no chorus person shall be required to report for work before 

9 o'clock A. M. except on one day a week, on which day such a chorus 

person may be required to report at 8 A. M. The amendment provides, however, that such chorus per on shall receive one and onehalf times his regular rate of pay for the time worked before 9 A.M. 

The original Code provision for which this amendment is proposed 

as a substitute made no exception to the requirement that no chorm~ 

person be required to report before 9 A. ~1. The exception provided 
5 

-for herein does not increase the maximum number of hours that a 

chorus person may be required to work but merely permits an 

rmployer to utilize the services of the emp,loyees at an hour earlier 

than 9 A. M. on one day a week, providing that wages of time and 

a half are paid to such employees for such period. The amendment 

is designed to provide adequate rehearsal time on the one day in 

a week on which the weekly show is changed and a new show is presented. The period of time between 9 A. M. and the opening hour 

has been found to be inadequate and the limitation of the Code provision has worked a hardship in some instances. The amend1nent 

will remove this condition but at the same time provide for adequate compensation for the additional service, and will increase the 

purchasing power of chorus persons performing in presentation 

und vaudeville houses, since numerous persons of the Industry 

have indicated approval of and intention to utilize the services of 

chorus persons during the period provided. This will necessitate 

the payment for such chorus person of the extra compensation 

provided for in the amendment. 

VII. The amendment to Artic,Ie IV, Division C, Part 2, Section 

4 (b), which adds a paragraph immediately before subdivision 1 

thereof, is an amendment to that portion of the Code which provides 

that a chorus person be released from work with pay one day out 

of every seven days. Lay-off periods were rare and uncertain before the adoption of the Code and the original Code provision 

coupled with this amendment will definitely improve ·the standards 

of labor for chorus persons. The amendment permits an employer 

the option of following the original Code provision or providing 

one full week's lay-off with pay for chorus persons after six consecutive weeks of employment. The amendment also provides that if 

a chorus person receives less than six weeks employment, such choru:::; 

person shall be paid on the basis of eight days pay for each seven 

days work. The testimony adduced at the hearing showed that 

the practical operation of the original Code provision has resulted 

in some inefficiency since if the show continued, as it does in most 

instances, for a period of seven days, it !Vas necessary to release 

c:horus persons on alternate days which disrupted the routine, the 

relative positions of the chorus persons in the show for that week 

and made daily changes of position necessary. The amendment will 

correct this situation in that a person now may be laid off during 

the course of a whole week's show without disrupting the routine 

of the show. A protection for chorus persons is provided in that 

if the employer has elected this manner of providing lay-off to 

employees and the employment lasts less than a period of six weeks, 

the chorus person receives compensation in the form of an extra 

day's pay for each week of employment during which no period 

of rest was provided. 

VIII. The amendment to Article IV, Division C, Part 2, which: 

deletes the present Section 4 (b) ( 6) and adds a new Section 4 (b) 

( 6), provides that -if a chorus person is laid off because of irregularity 

of bookings after the first two weeks of consecutive employment, such 

person may be laid off for a period of seven days in any six weeks 

period without pay. The amendment further provides that if additional lay-off is required, cl~orus person shall be paid for the period 

d.f such additional lay-off at the rate of $3.00 per day as long as 
6 

the lay-off continues. The original Code provision provided for 

the payment of $3.00 per day to chorus persons for each day of layoff after the first two weeks of consecutive employment. It has been 

f?und, however, from the experience of the operation of this provision of the Code that short lay-offs from time to time are unavoid-

~ble a~d that an undue hardship is ~orked on the employer if he 

IS required to pay the rates now specified in the Code for each day 

of ~ay-?ff. It has been found also that seven days in a six weeks 

penod Is a reasonable amount of lay-off for chorus persons and this 

amendment so provides. The testimony adduced at the hearing 

indicates that this amendment will more equitably provide for 

compensation with respect to lay-off periods. 

IX. The amendment to Article IV, Division C, Part 2, which 

deJetes the j>resent Section 6 (b) and adds in lieu thereof a new 

Section 6 (b), provides that if an employer dispenses with the 

services of a chorus person, such chorus person shall be paid in 

cash the amount of the cost of his transportation, including sleeper 

and transportation of baggage, back to point of origin whether 

the chorus returns immediately or not. In a number of instances 

in the past, employers have taken a show and chorus on the road 

to different cities in the United States and if the show did not 

prove a success;. it became the practice of employers, either because 

of insufficient hnances or for other reasons, to dismiss the chorus 

persons on the road, and provide no arrangement for the transportation of such· chorus person back to the point of origin. This practice frequently resulted in chorus persons being stranded without 

funds, sometimes great distances from their homes or point of possible reen1ployment. The original Code provision, for which this 

amendment is proposed as a substitution, was couched in vague 

language and it was deen1ed advisable to more explicitly require that 

the chorus person be provided with means to return to the point of 

origin. The an1endment will definitely tend to correct and eliminate 

a relief problem that has, in the past, com·e about in communities in 

which such persons have been stranded and will improve the 

standards of labor of chorus persons. 

X. The amendment to Article IV, Division C, Part 2, Sub-Section 

6, adds a new paragraph to be known as Paragraph C, and for the 

purpose of clarity provides that if a chorus person terminates his or 

her contract, the employer is not required to provide transportation 

or sleeper back to the point of origin. The facts adduced at the 

hearing shows that this is a fair provision. 

XI and XII. .The amendment to Article VI, Part 1, Section 7 (b) 

and the amendment to Article VI, Part ~ Section 7 (c), provide a 

longer period of time within which the lJode Authority may make 

its determination of appeals. These two amendments are administrative in nature and will facilitate the orderly processes of administering the Code by providing a more reasonable time for the Code 

Authority to examine into the merits and pass upon matters which 

have been determined by the various Boards set up under the Code. 

I find in conclusion that all of the twelve amendments which are 

attached hereto were duly submitted by the Code Authority or 

assented to by that body in conformity with Article IX, Part 2, of the 

Code of Fair Competition for the Motiop. Picture Industry and that 

said amendments comply in all respects with the pertinent provisions 
7 

of Title I of the National Industrial Recovery Act, and that the 

amendments are well designed to promote and effectuate the policies 

set forth in Title I of the Act. The amendments and the Code as 

amended contain no provision designed to promote monopoli tic 

practices or designed to either eliminate, oppress or discriminate 

against small enterprises. The effect of the amendments which may 

reasonably be anticipated is neither to remove nor increase restraints 

on competition and place no unreasonable burden upon either large 

or small enterprises. The amendments and the Code as amended will 

tend to induce and maintain united action of labor and managem.ent 

under adequate government supervision and will increase the opportunity for harmonious relation , and will tend to reduce or eliminate 

strikes and other forms of controversies between labor and management. The amendments and the Code as amended will tend to elimi- nate unfair competitive practices between members of the Industry, 

and will increase purchasing power and will tend to reduce and 

relieve unemployment. 

I therefore r ecommend to the National Industrial Recovery Board 

the approval of the said amendments to the Code of Fair Competition for the J\1otion Picture Industry. 

Respectfully, 

Approved: 

SoL A. RosENBLATT, 

WILLIAM p. FARNSWORTH, 

Deputy Ad1ninistrator. 

Division Ad1'nini.t:drator. 

wASHINGTON, D. c., 

M a1Y:h 4, 1935. 
A~1END~fENT TO CODE OF FAIR COMPETITION FOR 

THE 1\10TION PICTURE INDUSTRY 

Amend Article I-Add the following new section to be known a.s 

Section 16 and to read as follows : 

"This Code shall apply only to the Continental United States, 

and to the Territory of Alaska." 

Amend Article IV, Division Ct Part 1-Add the following new 

section to be known as Section ( 12 J and to read as follows : 

"No exhibitor shall enter into any agreement, directly or indirectly, for services of a kind usually and customarily performed by 

theatre employees directly compensated by exhibitors unless such 

agreement provides that no person actually engaged in rendering 

such services shall be employed at a lower scale of wages or for a 

greater number of hours than provided for in this Code; provided, 

however, that this provision shall not apply if the agreement for 

services was entered into in writing prior to the effective date of this 

amendment." 

Amend Article IV, Division C Part 2, Section 1 (a)-Delete the 

following: 

'' * * * " rer) " shows " tab " shows " tent " shows " waO'On " 

' ' ' 0 shows " truck ' shows " medicine " shows " show boats " * ::' * " 

Amend ' Article IV, Division ' C, Part 2-Delete ' the present Section 

3 (a) and insert in lieu thereof the following new Section 3 (a) : 

"In the event that the rehearsal period :for principals extends 

more than two (2) weeks, each principal required to rehearse shall 

be paid one-half of the weekly wage for such principal for each week 

or part thereof that the rehearsal extends beyond two (2) weeks." 

Amend Article IV, Division C, Part 2-Delete the present Section 

4 (a) ( 3) and insert in lieu thereof the :following new Section 

4 (a) (3) : 

"The minimum wage of a performer employed on a 'per diem' 

basis and compensated in any manner shall be $7.50 net in cash per 

day for each theatre in which such a performer appears." 

Amend Article IV Division C, Part 2, Section 4 (b)-Delete the 

last sentence of the first paragraph and insert in lieu thereof the 

following: 

" No chorus per on shall be required to report at a theatre before 

nine o'clock A. NI. except as hereinafter provided. A chorus person 

may be required to report at a theatre not earlier than eight o'clock 

A. ~I. on no more than one day in each week, provided such day is 

the clay of opening of a new weekly program, and provided, further, 

that uch chorus person shall be compensated for all such time prior 

to nine o'clock A. 1\1. at not le s than the rate of one and one-half 

times his regular hourly rate. In computing the amount to be paid 

as herein provided, the regular hourly rate at which such chorus 

person is employed shall be determined for this purpose by dividing 

the amount per week which he hall regularly be paid by forty." 

(8) 
9 

Amend Article IV, Division C, Part 2, Section 4 (b)-And the 

following paragraph immediately before sub-division (1) thereof: 

" In the event the Exhibitor or independent contractor in any 

theatre which maintains a resident chorus under weekly contract so 

elects and notifies such chorus, then instead of the above-mentioned 

Jay-off period which provides that the chorus be given one day off 

per week with pay, the chorus person may be given one full week's 

lay-off with pay after six consecutive weeks of employment; provided, however, that if a chorus person working in a theatre operatjng under such policy receives less than six weeks' employment, the 

chorus person shall be paid on a pro rata basis, which pro rata basis 

shall be computed upon a basis of eight days' pay for each seven days' 

work. Provided further, that when the chorus person is given one 

full week's lay-off with pay after six consecutive weeks of employment the chorus person shall on request r ehearse not more than ten 

hours during the week of lay-off, but shall not be requested to 

rehearse at all during the week prior to such lay-off." 

Amend Article IV, Division C, Part 2-Delete the present Section 4 (b) ( 6), and insert in lieu thereof the following new Section 

4(b) (6): 

"If a lay-off is required because of irregularity of bookings after 

the first two (2) weeks of consecutive employment, a chorus person 

may be laid off without pay seven (7) days in any six (6) weeks' 

period. Such lay-off may occur at any time after the first two weeks 

of consecutive employment. If additional lay-off is required, the 

chorus person shall be paid for the period of such additional lay-off 

at the rate of Three Dollars ($3.00) per day as long as the lay-off 

continues." 

Amend Article IV, Division C, Part 2-Delete the present Section 

6 ~b) and insert in lieu thereof the following new Section 6 (b) : 

'If individual notice of contract termination is given by the 

employer1 the chorus person s~all ~e pai~ in cash the. amount of the 

cost of his or her transportatiOn (Including sleeper and the cost of 

transportation of his or her baggage) back to the point of origin 

whether the chorus returns immediately or not." 

Amend Article IV, Division C, Part 2, Section 6-Add the following new paragraph to be known as Paragraph (c) : 

"If an individual notice of contract termination is given by the 

chorus person, the employer is not r equired to provide transportation 

or sleeper." 

Amend Article VI, Part 1, Section 7 (b)-Add after the word 

"Appeal" in the seventh line therof, the following: "unless the Code 

Authority shall extend the time to render its decision, which extension shall in no event exceed thirty (30) days." 

Amend Article VI, Part 2, Section 7 (c) - Add the following: 

" unless the Code Authority shall extend the time to render its 

decision, which extension sha1l in no event exceed thirty (30) days." 

Approved Code No. 124-AmP.!1dment No. 4. 

R egistry No. 1639-03. 

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