Evening star., 1935-04-08
1HtA|tR OWNERS
SCORE FILM CODE
Treated as 0utcasts, Say
Independents-N. R. A.
Test Case Is Filed.
BY the Associated Press.

By the Associated Press.
A group of independent moving pic
ture theater owners protested to Sen
ate investigators today they had been
treated as "outsastS" during drafting
of N. r. AS motion picture code, and
contended its administration was
dominated by the big picture pro-
ducers.
These charges were made before the
Senate Finance Committee shortly
after the A. L. A. Schechter Poultry
Corp. and the Schneckter Live Poulty
Market presented the Supreme Court
with a new test case of N. r. IS
constitutionality.
The two firms, with the Govern
ment cooperating, sought a review
of a decision by the Second Circuit
Court of Appeals, in which most OF
the counts of poultry code violations
against them were sustained.
The witness before the Senate COM
mittee was Abram F. Myers, former
member of the Federal Trade Com
mission. He said he appeared as
spokesman for 4,500 to 5000 theaters,
members of the Allied States Asso-
citation of Motion Picture Exhibitors.
Signing Secret, is Claim.
He testified the independent theater
owners had been given no information
about the industry's code during its
formulation and were not invited to
sign it. Myers said it was signed In
secret.
The code, he testified, was drafted
by Sol A. Rosenblatt, division admin
istrator of N R. A., and gave COM
plete control of the Code Authority to
the big eight" producers.
An executive order designed to pro-
tect the independent theaters was
signed by. President Roosevelt, Myers
said, but "emasculated" by Hugh S
johnson, former administrator.
He read a telegram from Nathan
Yamins. member of the Code Author
ity, stating that the independent re-
ceived little or no consideration
from the Code Authority.
One Remedy Given.
YaminS said there was only one
remedy-revision of the code to give
BUYERS and sellers of film equal repre-
sentation.
Myers conceded, under committee
questioning, that abuses had existed
prior to the code, but he said the code
gave legal sanction to the abuses.
Senator King, Democrat, OF Utah,
read a telegram from the Allied Thea
ter Owners of the Northwest, saying
they had adopted resolution at Min
neapolis last week condemning the
code and pledging mot further to CO.
operate in said code unless or until
the same has been amended
Crosby Field, New York inventor,
told the committee the ice code was
an example of how small new in
dustry is throttled by large obso-
lescent industry
He said he had invented new
method of manufacturing ice, but had
been given "an economic death war
rant" by N. R. A. He charged ter
rorism'' on the part of the code
authority and attempts to "bulldoze'
him. Investigators for the code
authority, Field said, acted in the
capacity of spies for the old industry.
Could Not Sell to Producers.
He testified he and his associates
had been able to sell their product
to users of ice under the code, but
not to producers.
The Justice Department and Donald
r. Richberg, N r. A. chairman. have
announced Supreme Court ruling
in the Schechter poultry case will
be sought at the present term OF
the court.
This decision was made shortly after
the Government abandoned its appeal
of the Belcher lumber case, in which
the Birmingham, Ala, Federal District
Court held N. r. A. unconstitutional.
The Circuit Court decision sustained
II of 10 counts charging violation of
the recovery act. The two rulings
against the Government involved
hours of labor and wages. The petit
tion filed today challenged the au-
thority of Congress to delegate legis-
lative power to the President and the
constitutionality of congressional pow
ers over the live poultry industry.
1t was expected the court would an
nounce next Monday, April Is, whether
it will review the case. If the review
is granted, as expected, the court will
fix day for a hearing at its present
term.