Approved Code No. 124-Amendment No.2 Registry No. 1639-03 

NATIONAL RECOVERY ADMINISTRATION 

AMENDMENT TO 

CODE OF FAIR COMPETITION 

FOR THE 

MOTION PICTURE INDUSTRY 

AS APPROVED ON JULY 27, 1934 

WE DO OUR PART 

UNITED STATES 

GOVERNMENT PRiNTING OFFICE 

WASHINGTON: 1934 

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Approved Code No. 124-Amendment No. 2 

A~iENDMENT TO CODE OF FAIR COMPETITION 

FOR THE 

MOTION PICTURE INDUSTRY 

As Approved on July 27, 1934 

ORDER 

APPROVING AMENDMENT oF CoDE OF FAIR CoMPETITION FOR THE 

:lvioTioN PICTURE INDUSTRY 

An application having been duly made pur. uant to and in full 

compliance with the provisions .of Title I of the National Industrial 

Recovery Act, approved June 16, 1933, for approva l of an amendment, to a Code of Fair Competition for the l\1o6on Picture Industry, and the annexed report on said amendment containing findings 

with respect thereto, having been made and dir~cte cl to the President : 

NO,V, THEREFORE, on behalf of the President of the Unitnd 

States, I, Hugh S. Johnson, Administrator for Industrial R covery, 

pursuant to authority vested in me by Executive Orders of the Pre ident, including Executive Order 6543-A, dated December 30, 1933, 

and otherwise, do hereby incorporate by refer nee, said annexed 

report and do find that said amendment 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 do hereby order that said amendment be and it is 

hereby approved, and that the previous approval of ~aid Code 

is hereby modified to include an approval of said Code in its entirety as amended, such approval and such amendment to take effect 

ten days from the date hereof, unless good cause to the contrary 

is shown to the Administrator before that time and the Administrator issues a subsequent order to that effect. 

HuGH S. JoHNSON, 

Ad1ninistrat:m· for Industrial R ecove171. 

Approval recommended: 

SoL· A. RosENBLATT, 

Division Administrator. 

WASHINGTON, D.C., 

July 1£7, 1934. 

76477°----829-149----34 (1) 
. REPORT TO THE PRESIDENT 

The PRESIDENT, 

The White House. 

Srn: The Code Authority of the Motion Picture Industry submitted on July 3, 1934, proposed amendments for the Code of Fajl· 

Competition for the Motion Picture Industry. These amendments 

as submitted were presented to the L egal Division of the National 

Recovery Administration and received its a.pproval. 

The main body of these amend1nents being in accord with an 

Executive Order signed by you and dated April 14, 1934, a public 

hearing was not deemed necessary, and in lieu of the public hearing 

a notice of opportunity to file objections (Administrative Order No. 

124-24) was printed and distributed in the same manner as a notice 

of hearing. Ten days were given in this notice of opportunity to 

file objections as a time within which objections to these amendments 

were to be received. 

In their final form, these amendm-ents were approved by the Legal 

Division and the Research and Planning Division of the National 

Recovery Administration. The reports of the remaining Boards are 

not nece sary since these a1nendments are confined to the collection 

of ex pen es of Code Administration and a 1nodel clause regarding 

the liability of members of the Code Authority. 

The Deputy Administrator in his final report to me on said amendments to said Code having found as herein set forth and on the 

basi of all the proceedings in this matter: 

I find that: 

(a) The amendm-ents to said Code and the Code as amended are 

well designed to promote the policies and purposes of Title I of the 

National Industrial Recovery Act including the removal of obstruction to the free flow of interstate and fore1gn commerce which tend 

to diminish the amount thereof, and will provide for the general 

welfare by promoting the organization of industry for the pvrpose 

of cooperative action among trade groups, by inducing and maintaining united action of labor and man<tgement under adequate 

governmental sanction and supervi ion, by eliminating unfair competitive practice , by promoting the ful1e t possible utilization of 

the present productive capacity of industrie , by avoiding undue restriction of production (except as may be temporarily required), by 

increasing the consumption of indu trial and agricultural products 

through incr easing purchasing power, by reducing and relieving 

unemployment, by improving standards of labor, nnd by otherwise 

rehabilitating indn try. 

(b) The Code as amencl.ed complies in all respects with the pertinent provi ions of aid Title. of said Act, includino· 'vithout limitation Sub · ction (a) of Section 3 Sub ection (a) of Section 7, and 

Subsection (b) of Section 10 thereof. 

(2) 
3 

(c) The Code empowers the Code Authority to present the aforesaid amendments on behalf of the industry as a whole. . (d) The amBndments and the Code as amended are not designed 

to and will not permit monopolies or monopolistic practices. 

(e) The amendments and the Code as amended are not designed 

to and will not eliminate or oppress small enterprises and will not 

operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have 

not been deprived of the right to be heard prior to approval of said 

amendments. 

For these reasons, these a1nendn1ents have been approved. 

Re-spectfully, 

JULY 27, 1934. 

HUGHs. JOHNSON, 

Administrator. 
AMENDMENT TO CODE OF FAIR CO~IPETITION FOR.THE 

MOTION PICTURE INDUSTRY 

Amend Article II as follows: Add to Section 10, sub-section (b) 

the following : 

Upon approval by the Administrator of an itemized budget or 

such expenses and an -equitable, basis of contribution thereto, each 

such member ·hall be legally obligated for, and shall pay to the 

Code Authority, his or its respective equitable contribution, subject 

to rules and regulation pertaining thereto is ued by the Administrator. Failure to pay such equitable contribution sl1all constitute 

a violation of this Code. In addition to all other rights and remedies 

with re pect t11ereto, the Code Authority shall have the right to institute legal proceedings for the collection o£ any such equitable 

contribution. 

Add as Section II the following new paragraph: 

II. Nothing contained in this Code shall constitute the members 

of the Code Authority partners for any purpose. Nor shall any 

member of the Code Authority be liable in any manner to anyone 

for any act of any other member, officer, agent or employee of the 

Code Authority. Nor shall any member of the Code Authority, 

exercising reasonable diligence in the conduct of his duties hereunder, 

be liable to anyone for any action or omission to act under this Code, 

except for his own willful malfeasance or non-feasance. 

Approved Code No. 124--Amendment No. 2. 

Registry No. 1G39-03. 

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