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204 HARVARD BUSINESS REPORTS
a line or do work on the stage, set, or a location, of an individual character or nature are members of Equity in good standing and continue to be such during the term of employment of any Equity members, and
(b) When the producer has fully performed and is performing the covenants of each employment contract with each Equity actor in each of his companies.
That part of the resolution which provided for punishment of members who violated the new rules read:
Further, resolved that any member (including all those whose resignations have not been accepted by the Council) who shall fail to observe each and every of the foregoing resolutions may be suspended for a prolonged term and otherwise penalized at the discrimination of this Council.
Further, during said term of discipline, suspension, or both, no member of the association (except those having existing contracts as aforesaid) shall appear in the same cast with such persons or accept employment with (legitimate) musical comedies, stock or pictures (sound or talking pictures) or in any field over which this Association has jurisdiction.
Equity made clear that its demands applied only to players under contract for one wreek or more. "Bit" and "small part" players were to be organized later. Special contracts would be available for them at an early date. According to Mr. Gillmore, extras were not asked to join Equity because the union could not benefit them enough to warrant their making expenditures for memberships and dues.
On June 4, the proposed Equity Contract was submitted to Equity members as well as to producers. A general letter was mailed to all members of the association; its contents undertook to justify Equity's stand on the points already mentioned and to secure the confidence of the members of the association.
The Equity Council also sent a letter to the producers telling them of the benefits they would derive from an "Equity Shop." It was pointed out that a union control over players in sound and talking pictures would guarantee the faithful fulfillment of all contractual obligations by actors, and that the standardization of working conditions under an Equity Shop would prevent certain producers from engaging in practices that were unfair to their competitors. In conclusion, the Council stated its willing