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178 ^ ^> ^> The Motion Picture Industry
tion such motion picture films in a block or group of two or more at a designated lump-sum price for the entire block or group and at separate and several prices for separate and several films, or for a number or numbers thereof less than the total number, which total or lump-sum price and separate and several prices shall bear to each other such relation as to operate as an unreasonable restraint upon the freedom of an exhibitor to select and lease for use and exhibition only such film or films of such block or group as he may desire and prefer to procure for exhibition ; or shall bear such relation to each other as to tend to require an exhibitor to lease such entire block or group or forego the lease of any portion or portions thereof ; or shall bear such relations to each other that the effect of such proposed contract for the lease of such films may be substantially to lessen competition or tend to create a monopoly in any part of the certain line of commerce among the several states, or with foreign nations, involved in said proposed sale, to wit : the business of the production, distribution, and exhibition of motion picture films to the public, or the business of production and distribution, or of production or distribution of moving picture films for public exhibition.
The Federal Trade Commission, being dissatisfied with the reply of the defendant to its desist order, fostered a Trade Practice Conference to seek a solution to the block booking problem, a conference which was held in New York on October 10, 1927. With the specific recommendations of this conference and with the discussions which followed it, we are not now immediately concerned. At the present moment, block booking is still the common practice of the motion picture industry. It is probably true that there is more open selling than there was. Doubtless this is the result of a number of factors among which the threat of governmental action is probably one. However, the fact remains that block booking still exists. At every session of Congress, bills are introduced designed to curb or prevent it; whatever may ultimately prove to be the case, up to now these bills have failed of passage.
It is true, however, that the contract proposed to go into effect, known as the Optional Standard License Agreement of 1933, contains provisions dealing with this problem substantially unlike those to be found in the earlier contracts.