The Film Daily (1933)

THE Friday, Dec. 1,1933 ■8&H DAILV 25 Grievance Boards Will Handle Exhibitor Complaints (e) that unreasonable clearance depreciates the potential return from motion pictures to subsequent-run theaters. (f) that unreasonable clearance as to time and area diminishes the potential revenue to Distributor and subsequent-run Exhibitor. Section 5. The decision of each Board upon any question shall be determined by a majority vote, but in case the Board is evenly divided, such question shall be submitted for determinat:on to the impartial representative of the Code Authority, who is provided for in Section 2 of this PART. The decision of the Board and/or the impartial representative, as the case may be, shall be in writing. Section 6. It shall be the duty of each such Board to promptly publish the schedules formulated by it, and file a copy thereof immediately with the Code Authority. Section 7. (a) Any party aggrieved by the schedules shall promptly and not later than thirty (30) days after publication thereof, file a protest . in writing with the Board issumg them. Thereupon such Board shall promptly convene and give reasonable notice of hearing to all parties concerned or having an interest in the proceedings and hear them and accept , from them all papers and evidence. The 'Board shall have power to make reasonable rules respecting notice of the time, place and manner of hearing. The Board shall make its decision within fifteen (15) days from the ;filing of the protest, or within three (3) davs after the parties shall have been fully heard. -whichever date is sooner. Any party aggrieved by the decision shall have the absolute right to appeal therefrom to the Code Authority, provided such appeal be filed or mailed by registered mail or delivered in writing not later than five (5) days after the decision of the Local Board is rendered. n which case the protest, with all evidence Jaken before the Local Clearance and Zoning Foard, shall be referred to the Code Authority. (b) All persons interested in the decision shall have the right to appear before the Code Authority and present additional evidence IThe Code Authority, after investigat:ng such irotest and reviewing the evidence theretofore aken and considering the additional evidence. ' f any, shall promptly render its decision, and lot later than fifteen (15) days from and ifter the date of the hearing upon the apleal. The requirement as to the various ;teps herein prescribed shall be mandatory in order to give full relief before the buying oason commences. ?ection 8. (a) The schedules presented and /or decions made by any Local Clearance and Zon j«ig Board and /or decisions of the Code AuJjharity upon any appeal to it. shall be binding upon all Distributors and Exhibitors in he territory affected. (b) Pending the final determination of any ispute or controversy, all existing contracts tween the disputants shall continue to be [ Vrformed in every respect. Section 9. The jurisdiction of the Local Clearance and Zoning Board shall be limited s herein specifically provided and such Board J, hall _ hear no questions other than those V ertaining strictly to clearance and zoning 'natters. 'APT 2. GRIEVANCE BOARDS. Section 1. The complaint of any Exhibitor hat a competing Exhibitor has committed ny of the acts set forth in the following aragraphs (a), (b), (c), and (d) with the "itention and effect of depriving, without -ist cause, the complaining Exhibitor of a ufficient number of motion pictures to oprate such Exhibitor's theater, shall be reared for determination to a Local Grievance loard constituted as hereinafter provided: (a) The licensing of more motion picjres than are reasonably required. (b) The adoption of an unfairly competing perating policy of unnecessary and too freuent changes of motion pictures. (c) The exaction without just cause of an Treement from any Distributor as a cond:on for entering into a contract for motion ctures that such Distributor refrain from censinsr 'ts motion pictures to the complain g Exhibitor. (d) The commission of any other similar St with_ the intent and effect of depriv'ng ithout iust cause the complaining Exhibitor ! a sufficient number of motion pxtures to aerate such Exhib-'tor's theater. Section 2. Each such complaint shall be in riting and made immediately after the ■mmission of the act or acts complained of, f in cases where an act or acts is threat■ied, immediately after notice thereof, and e Local Grievance Board after a fair and lpartial consideration of all of the facis , esented, a full, expeditious and complete hearing of all the parties concerned, including the Exhibitors directly involved, the Distributors having contracts with the Exhibitor complained against, and Exhibitors having contracts for runs subsequent to each of the Exhibitors directly involved, and if it deem? it necessary, an independent investigation of the facts, shall make a prompt determination of each complaint submitted to it. Section 3. The Local Grievance Board shall determine whether or not any Exhibitor complained of has committed any of the acts specified in paragraphs (a), (b), (c) and (d) of Section 1 of PART 2 hereof, and shall make findings of fact in such regard. The Local Grievance Board upon the facts found shall make an award (a) dismissing the complaint, or (b) granting such relief as the Local Board may deem appropriate. The Local Grievance Board shall not have power to award damages. No award shall be made in favor of a complaining Exhibitor unless the Local Grievance Board shall find as a fact that the complain;ng Exhibitor is able, ready and willing to fully carry out and comply with all of the terms and conditions which may be fixed by the Local Grievance Boird as a condition for making the award, which terms and conditions shall in no event be less favorable to the Distributor concerned than those contained in the license contract of the Exhibitor complained of, inc'uding the Distributor's loss of revenue, if any, resulting from the elimination of or reduction of revenue from any subsequent run or runs made necessary by such award, and such other terms and conditions as the Local Grievance Board may prescribe. Section 4. All complaints and grievances of exhibitors or distributors concerning provisions of this code or otherwise, and not specifically designated to be heard or passed upon in the first instance by the Code Authority or by arbitration or by the Local Clearance and Zoning Board shall be heard by the Local Grievance Board, and if such Local Board by a majority vote of the representatives thereon shall deem that any such complaint or grievance shall be certified to the Code Authority for determination, it shall be so certified, and the Code Authority shall consider and determine the same; otherwise_ such complaint or grievance shall be dismissed with a right of appeal from such dismissal to the Code Authority. Such proceedings before the Local Grievance Board and before the Code Authority shall be within the periods of time hereinafter prescribed in Sections 6 and 7 thereof. Section 5. Each Distributor shall have the right to license all or any number of the motion pictures distributed by such Distributor for exhibition at theaters affiliated with such Distributor, and no Local Grievance Board shall have jurisdiction to hear or determine any complaint by any Exhibitor based upon the fact that a Distributor has licensed the motion pictures distributed by it for exhibition at theaters affiliated with such Distributor. Section 6. (a) There shall be established a Local Grievance Board, appointed by the Code Authority, in each exchange territory. Each such Board shall consist of two representatives of Distributors, one of whom shall be a National Distributor with theater affiliations and one of whom shall be a Distributor without circuit theater affiliations, and two representatives of Exhibitors, one of whom shall be an affiliated Exhibitor, if there be one, and one of whom shall be an unaffiliated Exhibitor, and one person who shall have no direct or indirect affiliation with any branch of the motion picture industry, who shall be approved by the Administrator, who shall be regarded as the impartial representative of the Code Authority, and who shall vote on any question before the Board only in the case where the Board is deadlocked. There shall be a Chairman of each Board, selected by a majority vote of the members of the Board. Any vacancy in the Board shall be filled from the class of members in which the vacancy occurred. No member of such Board shall sit on any matter involving his own or his company's interests. (b) The decision of each Local Board upon any question submitted to it shall be determined by a majority vote, but in case the Board is evenly divided, such question shall be submitted for determination to the impartial representative of the Code Authority, as provided in paragraph (a) of this Section. The decision of the Board and/or the impartial representative, as the case may be, shall be in writing. All decisions of the Local Board shall be made within fifteen (15) days from the filing of the protest, grievance, or complaint, or within three (3) business days after the parties shall have been fully heard, whichever date is earlier. Section 7. (a) Any party aggrieved by any decision of the Local Board shall have the absolute right to appeal therefrom to the Code Authority, provided such appeal be filed or mailed by registered mail or delivered in writing not later than five (5) days after the decision of the Local Board is rendered, in which case the grievance or complaint, together with all the evidence taken before the Local Board shall be referred to the Code Authority. (b) Pending the determ'nation of such appeal, the determination order or other action of the Local Grievance Board shall be stayed. (c) Any party aggrieved shall have the right to appear before the Code Authority and present additional evidence. The Code Authority, after investigating the complaint or grievance and reviewing the evidence theretofore taken, and cons'dering the additional evidence, if anv, shall promptly render its decision not later than fifteen (15) days from and after the date when the parties have been fully heard on appeal. Section 8. No Exhibitor or D;stributor shall be entitled to file any complaint under this or any other ARTICLE of this Code unless such Exhibitor or Distributor shall have duly executed this Code in its entirety within forty-five (45) days after it is signed by the President of the United States, and/or forty-five (45) _ days after engaging in the motion picture industry, and shall have thereby agreed to comply with all the requirements of the National Industrial Recovery Act. Evidence of such compliance shall be filed with the Code Authority. PART 3. All members appointed to serve on respective Clearance and Zoning Boards and Local Grievance Boards shall be persons of good repute and of good standing in the industry, and shall upon acceptance of appointment subscribe and file with the Administrator an oath to fairly and impartially determine whatever issue is presented to the Board to which such member has been appointed. No such Board shall contain in its membership more than one representative of any Distributor or Exhibitor. PART 4. If a member of any board provided for by this Article VI ceases to belong to the class he represents upon such board, his memberslrp shall terminate and the Code Authority shall fill the vacancy so caused by designating a representative of the same class. ARTICLE VII General Trade Policy Provisions PART 1, The industry pledges its combined strength to maintain right moral standards in the production of motion pictures as a form of entertainment. To that end the industry pledges itself to and shall adhere to the regulations promulgated by and within the industry to assure the attainment of such purpose. PART 2. The industry pledges its combined strength to maintain the best standards of advertising and publicity procedure. To that end the industry pledges itself to and shall adhere to the regulations promulgated by and within the industry to assure the attainment of such purpose. ARTICLE VIII Miscellaneous Provisions PART 1. Any Exhibitor forwarding or delivering to another Exhibitor a print of a motion picture at the request or upon the order of the Distributor thereof, shall, bu' only for such purpose, be deemed to be the agent of such Distributor. PART 2. (a) Wherever in this Code arbitration of any matter is provided for, other than arbitration as provided in the Optional Standard License, Agreement (1933) or as may be otherwise specifically provided for, such matter shall be submitted for determination to an Arbitration Board. Such Arbitration Board shall consist of four (4) members. Each of the groups concerned in such matter shall appoint two of such members. In any such case where arbitration is to be used as provided in this Code, upon the written request of either group to the dispute or controversy the group making such request shall name therein two arbitrators, stating the business address and business or business connection of each, and shall designate therein the date, time and place of the hearing of such controversy. The date of such hearing shall not be earlier than seven (7) days from the date of the sending of such notice, unless it shall be claimed in such notice that irreparable injury will 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. (b) Within five (5) days from the mailing of such request for arbitration, or within twenty-four (24) hours if the date of such hearing shall be earlier than seven (7) days from the date of the sending of such notice, the group upon whom such request is made shall name two arbitrators in a written notice mailed or delivered to the other party, stating therein the business address and business or business connection of each arbitrator. If either group 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 qualified and then available to act is not appointed, others or another arbitrator may be appointed by the other group as the case may be. (c) 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. (d) If the arbitrators or a majority of them are unable to reach a decision, they or a majority of 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 majority of them are unable to agree upon the selection of an umpire, the Administrator shall upon request make such selection. PART 3. Nothing in this Code shall be deemed to apply to the production, distribution or exhibition of motion pictures on film of recognized sub-standard widths, or to slide films, or to non-theatrical mot;on pictures designed primarily for educational, scientific, industrial, commercial, advertising, (selling or other non-theatrical purpose, or to television of motion pictures, pirovided that the commercial production. d:str'bution or exhibition of such films shall be subject to investigation by the Code Authority to determine whether such production, distribution or exhibition of such films is unfair competition to an established motion picture theater or theaters. If found to be unfair competition, the Code Authority shall promulgate rules and regulations governing such unfair competition. PART 4. The provisions of this Code shall be separable. ARTICLE IX Mandatory and Amending Provisions PART 1. This Code and all the provisions_ thereof are expressly made subject to the right of the President, in accordance with the provision of Clause 10 (b) of the National Industrial Recovery Act, from time to time to cancel or modify any order, approval, license, rule, or regulation, issued under Title I of said Act, and specifically to the right of the President to cancel or modify his approval of this Code or any conditions imposed by him upon his approval thereof. PART 2. Such of the provisions of th:s Code as are not required to be included therein by the National Industrial Recovery Act, upon the application of the Code Authority approved by the Administrator and with the approval of the President, may be modified or eliminated as changes in circumstances or experience may indicate. It is contemplated that from time to time supolementary provisions to this Code or additional codes will be submitted for the approval of the President to prevent unfa'r competition and other unfair and destructive practices and to effectuate *he other purposes and policies of Title I of the National Industrial Recoverv Act consistent with the provisions hereof. 9 Legislatures Set Dates Nine regular legislative sessions are scheduled to start in the days following Jan. 1. Law-making bodies will meet as follows: Kentucky, Rhode Island and Mississippi, Jan. 2; Massachusetts and New York, Jan. 3; New Jersey and South Carolina, Jan. 9; Virginia, Jan. 10; Louisiana, May 14. A 10 per cent Amission tax will be introduced in Virginia.