The Film Daily (1933)

THE 16 -3&*. DAILY Thursday. Aug. 24, 1933 National Council Will Adminstratc Industry Code ABTTCLE XLV -tributor and exhibitor have (agreed to the arbitration of all matters under tan exhibition contract which provides that the 'exhibitor shall play any featured picture specified therein, upon a designated day or days of the week, and the exhibitor seeks to be relieved from such obligation for the reason only of the character of the motion picture so ited, the claim of the exhibitor shall • termined by arbitration, and the distributor, if the arbitrators so determine, shall the exhibitor from the obligation to •he motion picture upon the day or days ited by the distributor; provided that \hibitor makes such claim within three fter receipt of the notice of availability of such feature picture. In such cases arbitration shall be held upon forty-eight hours' notice if the distributor so desires. If the arbitrators shall sustain the claim of the exhibitor (a) the distributor shall the right to designate another picture for the same day or dates or to reserve the right to designate another pictur for a later date I or dates upon the same terms as the motion I picture in question; (b) the award of the I arbitrators shall not be deemed to apply to any other theatre in the same or any other location. Where because of an arbitration proceeding or an arbitration award it shall be impractical to serve subsequent run exhibitors in compliance with any notice of availability or confirmed play dates given any such sub^sequent run exhibitors, the distributor shall have the right to change such play dates. ARTICLE XLVI Wherever in this Code arbitration of any matter is provided for such matter sEall be submitted for determination to an Arbitration Board which shall consist of four members, each of whom shall be engaged in the motion picture business and two of whom shall be appointed by the exhibitor and the remaining two by the distributor concerned. I In any such case, upon the written request I of the exhibitor or distributor for arbitration, I the party making such request shall name I therein two arbitrators, stating the business I address and business or business connection I of each, and shall designate therein the date, time and place of the hearing of such conrsjr. The date of such hearing shall not be earlier than seven days from the date of the sending of such notice, unless it shall be claimed in such notice that irreparable injury win result unless there is a speedy determination of such controversy, in which case such hearing may be designated to be held earlier than the said seven-day period. Within five days from the mailing of such request for arbitration or within twenty-four hours if the date of such hearing shall be earlier than seven days from the date of the sending of such notice, the party upon whom such request is made shall name two arbitrators in a written notice mailed or del''ve-ed to the other party, stating therein the business address nnd business or bus'nes? connection of each arbitrator. If either party fails or refuses to name the arbitrators as herein provided or if any arbitrator so named shall fail or refuse to act, or be unable to serve, or shall be challenged, and others are or another arbitrator oualified and then available to act is not appointed, others or another arbitrator may be apnointed by the other party as the case may be. No member of an Arbitration Board shall hear or determine any controversy in which he has an interest direct or indirect, and any member having such interest shall be disqualified to act. If the arbitrators or a majority of them are unable to reach a decision, they or a majorityof them shall immediately select an umpire who shall not be engaged in the motion picture business. In such case the hearing before the umpire shall be at such time and place as the umpire shall designate and shall be had before the umpire alone, the arbitrators not to be permitted to attend the hearing before the umpire. If the arbitrators or a maioritv of them are unable to agree upon the selection of an umpire, the Code Authority shall be requested to make such selection. ARTICLE XLVn A National Board of Appeals constituted as in this Article provided shall consist of either (a) four unaffiliated exhibitors, two distributor representatives, and two affiliated circuit reoresentatives. or (b) two unaffiliated exhibitors, one distributor representa tive and one affiliated circuit represer. chosen by a fair method of selection. ARTICLE XLVIII So long as any producer or distributor shall in the production of motion pictures be required to pay royalties for licenses to use music, sound recording or sound reproducing equipment, such producer or distributor may refuse to contract to license the exhibition of any such motion picture by any exhibitor unless the exhibitor agrees to pay as part of the total negotated rental a charge designated as a "score charge." Nothing in this article shall be deemed to abridge or limit the right of any producer or distributor to make any division or divisions of any total negotiated film rental by any name whatsoever. ARTICLE XLIX Administration A MOTION PICTURE CODE NATIONAL AUTHORITY constituted as in this article provided and herein referred to as the "Code Authority" shall be the agency for the administration of this Code, other than such agencies named herein to perform definite functions, and shall have such powers as shall be necessary therefor, together with such other powers and duties as herein prescribed. The Code Authority shall be chosen by a fair method of selection and approved by the Administrator, and be constituted as follows : Four representatives of producers; four representatives of distributors; four representatives of exhibitors, the two coordinators appointed by the Administrator and not more than three representatives without vote, appointed by the Administrator. The Code Authority shall organize by the selection of such officers and advisers as it may deem proper and necessary. The Code Authority shall be empowered to assist the Administrator in administering and supervising the observance of this Code by the several divisions of the industry. The Code Authority may — ake investigations as to the functioning and observance of any of the provisions of this Code at its own instance or on the complaint by any person affected and report the same together with its recommendations or findings to the Administrator. The Code Authority shall to such exter in such manner as may seem most useful utilize the facilities of all existing cjregional and local trade associations in the industry. ARTICLE L The President may from time to time cancel or modify any order, approval, license, rule or regulation issued under Title I of the National Industrial Recoverv Act. ARTICLE LI By presenting this Code the members of the industry assenting thereto are not consenting to any modification thereof and each reserves the right to object individually or jointly to any modified Code. ARTICLE LII It is contemplated that supp'.e— er.tary provisions or amendments of this Code or tional Codes applicable to the industry or branches thereof may from time to time be submitted for the approval of the Pre ARTICLE LIII Definitions The term "producer" shall include natural persons, partners! - : a: ions and corporations engaged in the production of motion pictures. The term "distributor" shall include natural persons, partnerships, associations and corporations engaged in the distribution of a tion pictures. The term "effective date" shall mean ten persons, partnerships, associations and corporations engaged in the ownership or operation of theatres for the exhibition of motion pictures. The term 'effective date" shall mean ten (10) days after the approval of this Cide by the President of the United States. Industry Code Hearing in Washington Sept. 12 (.Continued from Page 1) conferences were discussed by Rosenblatt. O'Reilly and Kent. Kent arrived in Washington early yesterday morning, having taken a midnight train from New York. O'Reilly's plans to accompany him were altered when a meeting of the exhibitor continuing committee ran from late Tuesday afternoon until 9 a.m. yesterday. After breakfasting with Rosenblatt at the New Willard. Kent went into conference with him at his office in the Commerce Building. O'Reilly joined the session the middle of the afternoon. They both returned to New York last night. 'Anybody who has anything to say regarding the code will have an opportunity to say it at the hearing," declared Rosenblatt. Requirement is made that persons who wish to speak must notify Rosenblatt before noon on the day previous to the hearing. With each I request must go a statement setting forth without argument, a proposal, (1) for the elimination of a specific provision of the code, or (2) a modification of the specific provision, in language proposed by the witness; or (3) a provision to be added to the code, in language proposed by the witness. The request must also contain a statement of the name of any person seeking to testify in the hearing and a designation of the persons or groups whom he represents. To Aid Rosenblatt Three aides and two NRA groups will work with Rosenblatt, as the film industry code, gradually moves towards approval by President Roosevelt. The research and planning division and the legal division of the NRA Administration will examine the draft, advise on which will also be provided by a labor. Industrial Board and a consumer representative. Stabilization of the amusement industry through the workings of ^e NRA codes will help make the picture and show business more attractive from the viewpoint of out side financing, said Rosenblatt. Benefits to the film industry wiil be double-barrelled, declared Rosenblatt, inasmuch as peoole with more leisure time on their hands are bound to go to theaters. That Kent will not accept any post in connection with the permanent administration of the industry code was indicated yesterday when he told The Film Daily: "When the code is done, as far as I'm concerned, I'm through with the matter." Producer divorce of theater holdings, once a frequently-raised cry in some exhibitor quarters, failed to rate sufficient consideration on the part of the exhibitor code-drafting committee to get into either the code or the minority exceptions. After brief discussion the proposal was dismissed as impractical. Deplore "Wild Guesses" Deploring "wild and disturbing guesses" which only serve to cause confusion within the motion picture business. NRA executives yesterday urged persons identified with it to refrain from such speculation pending final completion and approval of an industry code. Communications to the NRA administrative offices from film people indicate in numerous instances that they have been misinformed as to what is actually being done by those in charge of carrying out the Act's provisions, it was declared. "No code or provisions have been finally approved for the code." NRA executives pointed out. "So far the draft is only tentative and is subject to alterations." Members of the Motion Picture Laboratories Association which drafted a tentative code for its phase of the film industry claims to represent approximately 90 per cent of the laboratory business from the standpoint of volume of film developed, says an NRA notice of the hearing on the code scheduled for Aug. 31 in the small auditorium of the Chamber of Commerce building. Membership of the association is said to represent 42 per cent of the companies engaged in film laboratory work.