Evening star., 1933-12-10
Interpretation of Executive
Orders Attached to Code
Given by Johnson.
REPLACING OF MEMBERS
OF AUTHORITY PROTESTED
Government Grants Concessions to
Industry on All Major Points
at Issue.

Leaders Of the motion-picture indus
try yesterday succeeded in virtually
eliminating dictatorial powers over their
affairs, which had been reserved to the
Government IN executive orders at.
tached to their code when it was signed
on November 27 in Warm Springs, Ca,
by President Roosevelt
These orders, which gave to the Ma.
tional Recovery Administrator power.
among other things, to veto decisions
by the code authority and to change
the membership of that authority at
will, presented, in effect, the most
sweeping control over an industry vet
attempted, with the possible exception
OF the oil and liquor industries. More
over, it was pointed out, they were at
tached to the first completed code
which embraced an entire industry.
taking in both the producing and dis
tributing ends; went further than the
oil code in enabling Government con-
troll. and were not dictated by any such
special considerations as those which
caused the writing of drastic provisions
into the liquor codes.
AAS ACKNOWLEDGEMENTS VI Lie IQOQ1IlCd-
tions, which took the form of interpre-
tations Of the executive orders, was
made last night by Gen. Hugh S. john
son, national recovery administrator,
after conference with a committee
representing the industry which in
cluded Will H. Hays, president of the
Motion Picture Producers and Distrib-
utors' of America, Inc; Nicholas M.
Schenck, president of loves, Inc; J.
Robert Rubin, vice president of the
Metro -Goldwin-Mayer Distributing Cor
poratlon, and George j. Schaefer, vice
president Of the Paramount Distributing
corporation. This meeting followed a
conference Friday between President
Roosevelt and the representatives of the
industry. at which the groundwork for
the compromise was worked out.
Contrasts Are Involved.
The industry's representatives. in
presenting their protest to the President
ana to Gen. johnson, pointed out that,
IN working out their code, they had
sought to establish balance between
the production and distribution ends of
the industry in its self governing" code
authority, and that, since the code COW
cred both fields, it involved the question
Of contracts.
With cQntractual relations involved,
they held they could not agree to have
a Government agency or individual Of
fetal clothed with power to void any,
thing done by the code authority. They
had. they emphasized, made a con-
siderable concession in accepting q
provision for the setting up of Griev-
ance Boards for the settlement of dis.
putes within the industry involving con.
tracts and other relations between sell.
ers and buyers, and the code authority
had been designated as the agency to
which appeals might be taken for final
decision. Under one of the executive
orders, they argued, the recovery ad-
ministrator was established as super
authority for determination of such
cases.
They protested along similar lines
against the power reserved to the Gov.
eminent in another of the orders en-
abling the recovery administrator to
remove or replace members of the code
authority at will, holding that this
would enable him to disrupt the care
fully worked out balance between the
buying and selling ends of the business.
The administration, it was observed,
had been given the right of review over
81 of the % functions written into
the code, but the industry did not feel
it could accept dictation over those two
functions. The protest. they informed
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