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1144 MOTION-PICTURE JURISDICTIONAL DISPUTES Mr. Landis. In that other period between 1926 and 1933, that was the period where you said there was open shop ? Mr. Kahane. Yes; in Los Angeles there was open shop. Mr. Landis. The different studios could hire anyone they wanted to ? Mr. Kahane. Yes, sir. Mr. Landis. I thought that might have some bearing on the ques- tion Mr. McCann put a while ago. You remember that. Counsel? Mr. McCann, I do not recall it, sir. Mr. Landis. In the period between 1926 and 1933, that was the period of the open shop out there. Mr. McCann. That is right, sir. Mr. Landis. They could really hire and fire, or do as they pleased. Mr. McCann. I hope you will correct me if I am wrong, Mr. Kahane, but I do not believe there was a closed-shop agreement of any kind until about 1936. Mr. Kahane. That may be so. I think there were closed-shop agree- ments before 1936; I think they began in 1933. Mr. Kearns. Mr. Owens. Mr. Owens. Mr. Kahane, was that the directive you were reading from before? Mr. Kahane. Yes, sir. This is not the directive but it purports to be a copy of the directive. It is not the signed directive. Mr. Owens. That indicated these people had considered fully what took place in the prior years? The testimony had been given to them and they had not taken those facts into consideration; is that correct ? Mr. Kahane. May I read from it ? They say: An analysis discloses that three possible methods of solution could be utilized, namely: One, strict adherence to craft or vei'tical line of demarcation. Two, establishment of an industrial or horizontal union throughout the industry. Three, revision of work designations within the industry patterned after previous agreements negotiated mutually by the various crafts. After careful and thorough study the committee unanimously agreed that the letter plan is un- questionably the best method of approach, and it is the committee's considered opinion that such procedure affords the only possible solution to a most difficult and complex problem. Mr. Owens. That looked like a combination of one and two, the third one, did it not? In other words, they were not going exactly along horizontal lines but they were having crafts shaped along hori- zontal lines. That is about what No. 3 would be, would it not? Mr. Kahane. Well, probably so, but what they said to themselves apparently is: Here is an agreement made in 1925 between these two organizations in which they undertook to divide the work as they thought it should be done. Therefore we think that agreement should be put into effect. Mr. Owens. And you immediately began to deal with an organiza- tion that was created pursuant to that directive, is that correct ? Mr. Kahane. That was a local formed by the lATSE; yes, sir. Mr. Owens. Did you deal with that local or did you deal with the international ? Mr. Kahane. The international, sir. Mr. Owens. Now how did it occur that there was any change made in that directive ? Mr. Kahane. All we know is that on August 16 we were given a communication