The Film Daily (1934)

THE onday, Jan. 29, 1934 OAILV ANALYSIS OF MOTION PICTURE CODE By LOUIS NIZER SIXTEENTH INSTALLMENT ARTICLE V— UNFAIR PRACTICES—DISTRIBUTORS— EXHIBITORS—(cont.) 2. No Prior Distributor's Pictures If no feature pictures of the Distributor were exhibited at the theater during ninety days prior to the notice of cancellation, average the daily gross receipts for the period of thirty operating days prior to the written notice. Apply to such average, the percentage terms of the contract. The sum thus computed must be paid by the Exhibitor to the Distributor with the notice of cancellation. Example: Suppose that the gross receipts of thirty operating days prior to the notice of cancellation are $4,500.00. The average daily gross receipts are, therefore, $150.00. The percentage terms of the contract must be applied to this sum. Assuming that the percentage terms are $50.00 guarantee plus twenty per cent of the gross receipts, the computation is as follows: Twenty per cent of $150.00 is $30.00. The guarantee to be paid in addition to this sum is $50.00. Therefore, the Exhibitor in order to cancel must pay $80.00 to the Distributor at the time that written cancellation is sent. g) Computing Fractions In computing the number of feature pictures which may be cancelled, fractions of more than one half are counted as h) Rights as to Cancelled Picture When the Exhibitor cancels a picture, all his rights to it end and go back to the Distributor. i) Optional Contract Amended This Code provides that the Optional Standard License Agreement shall after the effective date of this Code be the standard contract used by Distributors. That contract, however, is amended by substituting for the 5-5-5 cancellation clause the ten per cent cancellation clause analyzed in this Article. ARTICLE VI— GRIEVANCE ARDS AND ZONING BOARDS Clearance and Zoning Boards . Purpose To prevent clearance of un reasonable length and area, fair schedules of clearance and zoning may be set up by a Local Clearance and Zoning Board created for each exchange territory. 2. Selection and Composition of Clearance and Zoning Boards (a) Each Board is appointed by the Code Authority. (b) Each Board is composed of seven members selected in the following manner: 1. Two Distributors; (one affiliated and one unaffiliated). 2. Two first-run Exhibitors; (one affiliated and one unaffiliated). 3. Two subsequent-run unaffiliated Exhibitors. 4. One person having no affiliation with any branch of the Motion Picture Industry who must be approved by the Administrator. This person is regarded as the impartial representative of the Code Authority and votes only if the Boar-d is deadlocked. (c) The members of each Board shall, by a majority vote, select a chairman. (d) If there is a vacancy in the Board, it shall be filled from the class of members in which the vacancy occurred. 3. Duties of Clearance and Zoning Boards (a) Preparing Clearance Sched ule Prior to January 1st of each year, the Board shall formulate and publish for its territory a schedule of clearance. The schedule shall apply for the season which follows. (b) Nature of Schedule The schedule may classify theaters by zones or other classifications suited to local conditions. The only purpose of the schedule shall be: 1. To fix the maximum clearance in length of time. 2. To fix maximum clearance for area. (c) Changing Schedule Each Board may, after fair notice and hearing to interested parties, change or modify any part of the schedule which it has set up. No such change may, however, affect any contract made pursuant to such prior schedule without the written consent of the parties to such contract. Sec. 4. Factors in Setting up Clearance Schedules Each Board when making any classification of theaters or when fixing the maximum period or area of clearance, shall consider and give weight to the following six facts: (a) Effect on License Fees That clearance to a great extent determines the rental value of pictures. (b) Lowering License Fees That inadequate clearance lowers the rental value of pictures. (c) Causing Unemployment That lower rental values tend to reduce the number of pictures made and thereby cause unemployment. (d) Affects Subsequent-Run Theaters .... That unreasonable clearance to a great extent affects the value of pictures for subsequent-run theaters. (e) Income of Subsequent-Run Theaters That unreasonable clearance lowers the possible income from pictures to subsequentrun theaters. (f) Income of Distributor That unreasonable clearance lowers the possible income tc the Distributor from subsequent-run Exhibitors. Sec. 5. Decision of Clearance and Zoning Boards (a The decision shall be reached by a majority vote. (b) If the Board is evenly divided, the impartial representative of the Code Authority decides. (c) The decision of the Board must be in writing. Sec. 6 Publishing and Filing Schedule The Clearance and Zoning Board shall promptly publish the schedules which it draws up and file a copy with the Code Authority. Sec. 7. Protest Against Schedules and Appeals (a) Filing Protest Any party aggrieved by the Clearance and Zoning schedule may file a protest in writing with the Clearance and Zoning Board not later than 30 days after publication of the schedule. (b) Hearing the Protest The Clearance and Zoning Board must promptly convene and give reasonable notice to all parties having an interest, and hear them and accept all papers and evidence. The Board has the power to make reasonable rules concerning notice of the time, place and manner of hearing. (c) Decision The Clearance and Zoning Board must make its decision within 15 days after the protest has been filed, or within three days after the hearing, whichever date is sooner. (d) Appeal from Clearance and Zoning Board Decision Any person aggrieved by the decision may appeal to the Code Authority by filing the appeal or mailing it by registered mail, or delivering in writing the appeal within five days after the decision. In such case all evidence taken before the Local Clearance and Zoning Board shall be referred to the Code Authority. (e) Hearing Before Code Authority All persons interested in the decision have the right to appear before the Code Authority and present additional evidence. (f) Decision by Code Authority After investigating the protest and reviewing the evidence taken before the Local Board, and considering the additional evidence, the Code Authority must make its decision not later than 15 days after the hearing. (g) Time of the Essence The various steps described above must be strictly followed in every respect in order to give full relief before the buying season begins. Sec. 8. Schedules and Decisions Apply to All Exhibitors and Distributors (a) All Distributors and Exhibitors in the territory to which the schedules apply are bound by: 1. The schedules of clearance. 2. Decisions made by any Local Clearance and Zoning Board. 3. Decisions of the Code Authority upon any appeal to it. (b) Contracts in Force During Season Pending the decision of ny dispute all existing contracts between the Distributor and Exhibitor must continue to be performed in every respect. Sec. 9. Jurisdiction Limited The jurisdiction of the Local Clearance and Zoning Board is limited to the matters above set forth and the Board may hear no questions other than those referring to clearance and zoning matters. {To Be Continued)