The Exhibitor (Jun-Oct 1939)

11 THE NEELY BILL’S AMENDED TEXT (Editor's Note. This amended Neely Bill was passed by the Senate last week and will now be considered by the House of Representa¬ tives. Although The Exhibitor printed the bill several weeks ago, the amended version is presented for the purposes of the record.) A BILL To prohibit and to prevent the trade practice s known as "compulsory block-booking" and "blind-selling’’ in the leasing of mo¬ tion-picture films in interstate and foreign commerce. Be it enacted by the Senate and House of Representatives of the United States of Amer¬ ica in Congress assembled, That the methods of distribution of motion-picture films in com¬ merce whereby (a) exhibitors are required to lease all or a specified number of an offered group of films in order to obtain any individ¬ ual desired film or films in the group, a trade practice sometimes known as "compulsory block-booking,” and (b) films are leased be¬ fore they are produced and without opportun¬ ity for the exhibitor to ascertain the content of such films, a trade practice sometimes known as "blind-selling,” are hereby declared to be contrary to public policy in that such practices interfere with the free and informed selection of films on the part of exhibitors and prevent the people of the several States and the local communities thereof from in¬ fluencing such selection in the best interests of the public, and tend to create a monopoly in the production, distribution, and exhibition of films. The Congress finds and declares that such methods and practices adversely affect and constitute a burden upon commerce, and it is the purpose of this Act to prohibit and to prevent such methods and practices in commerce. Sec. 2. For the purposes of this Act, un¬ less the context otherwise requires — (1) The term "motion-picture film” or "film” means all motion-picture films (whether copyrighted or uncopyrighted), including posi¬ tive and negative prints, and copies or re¬ productions of such prints, which films con¬ tain photoplays or other subjects and are produced for public exhibition: Provided, That the term shall not include films commonly known as "newsreels” or other films contain¬ ing picturizations of news events, or short sub¬ jects of two thousand feet or less in length. (2) The term "to lease” includes the mak¬ ing of a license agreement, contract, or any type of agreement whereby a film, the dis¬ tribution of which is controlled by one of the parties, is to be supplied to and exhibited in a theatre owned, controlled, or operated by the other party. (3) The term "person” includes an in¬ dividual, partnership, association, joint-stock company, trust, or corporation. (4) The term "distributor” includes any person who engages or contracts to engage in the distribution of motion-picture films. (5) The term "exhibitor” includes any per¬ son who engages or contracts to engage in the exhibition of motion-picture films. (6) The term "commerce” means com¬ merce between any State, Territory, or the District of Columbia, and any place outside thereof; or between points within the same State, Territory, or the District of Columbia, but through any place outside thereof; or within any Territory or the District of Colum¬ bia. For the purposes of this Act (but in no wise limiting the definition of commerce) a transac¬ tion in respect of any film shall be considered to be in commerce if the film is part of that current of commerce usual in the motion-pic¬ ture industry whereby films are produced in one State, leased for exhibition in other States, and distributed to them through local ex¬ changes in the several States, the films cir¬ culating from the exchanges and between the various exhibitors. Films normally in such current of commerce shall not be considered out of such commerce through resort being had to any means or device intended to remove transactions in respect thereto from the pro¬ visions of this Act. For the purpose of this paragraph, the word "State” includes Terri¬ tory, the District of Columbia, and foreign country. (7) The terms "aggregate price” and "price” as used in section 3 (1) shall mean the aggregate of all flat rentals, and of all rentals based upon a percentage of prospec¬ tive receipts together with any other con¬ sideration named in the lease or offer to lease. Sec. 3. (1) It shall be unlawful for any distributor of motion-picture films in com¬ merce to lease or offer to lease for public ex¬ hibition films in a block or group of two or more films and to require the exhibitor to lease all such films or permit him to lease none; or to lease or offer to lease for public exhibition films in a block or group of two or more at an aggregate price for the entire block or group and at separate and several prices for separate and several films, or for a number or numbers thereof less than the total number, which aggregate price and sep¬ arate and several prices shall bear to each other such relation (a) as to operate as an unreasonable restraint upon the freedom of an exhibitor to select and lease for use and ex¬ hibition only such film or films of such block or group as he may desire and prefer to pro¬ cure for exhibition, or (b) as tends to require an exhibitor to lease such entire block or group or forego the lease of any number or numbers thereof, or (c) that the effect of the lease or offer to lease of such films may be substantially to lessen competition or tend to create a monopoly in the production, distribu¬ tion, and exhibition of films; or to lease or offer to lease for public exhibition films in any other manner or by any other means the effect of which would be to defeat the pur¬ pose of this Act. Sec. 4. It shall be unlawful for any dis¬ tributor of motion-picture films in commerce to lease or offer to lease for public exhibition any motion-picture film or films over two thou¬ sand feet in length unless such distributor shall furnish the exhibitor at or before the time of making such lease or offer to lease an accurate synopsis of the contents of such film. Such synopsis shall be made a part of the lease and shall include (a) a general outline of the story and descriptions of the principal characters, and (b) a statement describing the manner of treatment of dialogs concerning and scenes depicting vice, crime, or suggestive of sexual passion. It is the purpose of this section to make available to the exhibitor sufficient information concerning the type and contents of the film and the manner of treat¬ ment of questionable subject matter to en¬ able him to determine whether he wishes to select the film for exhibition and later to de¬ termine whether the film is fairly described by the synopsis. Sec. 5. (1) Every person who violates section 3, or who fails to furnish the synopsis required by section 4, or knowingly makes any false statement in such synopsis, shall be deemed guilty of a misdemeanor and, on conviction thereof, shall be punished by a fine of not exceeding $5,000 or by imprisonment for not exceeding one year, or by both such fine and imprisonment in the discretion of the court. (2) The several district courts of the United States are hereby invested with jurisdiction to prevent and restrain violations of this Act, and it shall be the duty of the several district attorneys of the United States, in their respective districts, under the direction! of the Attorney General, to institute proceedings in equity to prevent and restrain such violations. Such pro¬ ceedings may be by way of petition setting forth the case and praying that such violation shall be enjoined or otherwise prohibited. When parties complained of shall have been duly notified of such petition, the court shall proceed, as soon as may be, to the hearing and determination of the case; and pending such petition, and before final decree the court may at any time make such tem¬ porary restraining order or prohibition as shall be deemed just in the premises. Whenever it shall appear to the court before which any such pro¬ ceeding may be pending that the ends of justice require that other parties should be brought before the court, the court may cause them to be summoned whether they reside in the dis¬ trict in which the court is held or not, and subpoenas to that end may be served in any district by the marshal thereof. Sec. 6. If any provision of this Act is de¬ clared unconstitutional or the applicability there¬ of to any person or circumstances is held invalid, the validity of the remainder of the Act and ' the applicability of such provision to other persons and circumstances shall not be affected thereby. Sec, 7. This Act shall become effective 12 months after its enactment. EXPERTS . . . in every field of theatre design and maintenance will be found listed on THE EXIIiniTOirS PAC.ES MORE IN CONSTANT USE THAN ALL OTHER SAFETY DEVICES COMBINED . . Decorative lighting • Exit and Direction Sign* Drinking Fountain* • Ola** and Metal Work • Ornamental Plaster Air Distribution Plaque* it Twri. igjintiwu 1 * Your Assurance of Our Reliability. VISIT OUR SHOWROOMS OR WRITE US Denignors-Enginecrn-Manufacturer* 12th Street. Phila. mm Designers-; VOIGT 1745 N. July 26, 19)9 THE EXHIBITOR