Movie Age (1927)

DECEMBER 31, 1927 PAGE 9 Brookhart Anti-Block Booking Bill Covers Acts Under Attack Complete Text of Measure Introduced by Iowa Senator Vests Complete Administrative Powers With F. T. C. The complete text of the bill intro¬ duced in Congress by Senator Smith W. Brookhart of Iowa, which would give copious administrative powers to the Federal Trade Commission and provides drastic penalties to violators of the anti¬ block booking provisions, is given be¬ low: To prevent obstruction and burdens upon interstate trade and commerce in copyrighted motion picture films, and prevent the restraint upon the free com¬ petition in the production, distribution, and exhibition of copyrighted motion picture films, and to prevent the further monopolization of the business of pro¬ ducing, distributing, and exhibiting copy¬ righted motion pictures by prohibiting blind booking and block booking of copy¬ righted motion picture films and by pro¬ hibiting the arbitrary allocation of such films by distributors to theatres in which they or other distributors have an in¬ terest, direct or indirect, and by pro¬ hibiting the arbitrary refusal to book or sell such films to exhibitors in which they have no such interest. Be it enacted by the Senate and H ouse of Representatives of the United States of America in Congress assem¬ bled, (a) For the purpose of this act “motion picture film’” or “film” or ‘films” shall mean copyrighted motion picture film such as is commonly trans¬ ported in interstate commerce for ex¬ hibition in motion picture theatres. The word “person” shall be construed to im¬ port the plural or singular, and shall in¬ clude individuals, associations, partner¬ ships, corporations, and trusts. The word “producer” shall include any person en¬ gaged in photographing scenes, plays, entertainments, events or scenes of news interest, or historical or educational value, and the like or negative motion picture film for the purpose of making positive prints therefrom or otherwise for exhibition in motion picture theatres, whether or not such person also is en¬ gaged, directly or indirectly, in the dis¬ tribution or exhibition of such films. The term “distributor” shall include any person engaged in selling, leasing, or renting copyrighted motion picture film to exhibitors, directly or indirectly, in the production of such films. The term “exhibitor” shall include any person owning or operating a motion picture theatre or theatres or other place where motion pictures are regularly exhibited as all or part of a program of entertain¬ ment, whether or not such person also is engaged, directly or indirectly, in the production or distribution of films. The “booking” of a film is the making of a contract of lease, license or sale between a distributor and an exhibitor, whereby the latter is given the right to make public exhibitions thereof. The words “interstate commerce” shall be con¬ strued to mean commerce between any state, territory or possession, or the District of Columbia, and any place out¬ side thereof; or -between points within the same state, territory or possession, or the District of Columbia, but through any place outside thereof, or within any territory, or possession, or the District of Columbia. (b) For the purpose of this act (but not in anywise limiting the foregoing definition of interstate commerce) a transaction in respect of any copyright¬ ed motion picture film shall be consid¬ ered to be in interstate if the film is a copy or reproduction of a negative or positive film and is part of that current of commerce usual in the motion picture industry whereby films are sent from one state to another with the expecta¬ tion that they will circulate in two or more states, being leased first to one ex¬ hibitor and then to another until the film has been exhibited such number of times that the public demand for ex¬ hibitions thereof has been met, includ¬ ing in addition to cases within the above general description, all cases where films are shipped by distributors located out¬ side a state into that state to any branch or agency owned or controlled by such distributor. Sec. 2. In the course and conduct of the motion picture industry the produc¬ ers own and or operate studios in the states of California, New York, New Jersey, and other states where they make or produce motion picture films. In the production of motion picture films large quantities of unexposed negative and positive films are shipped from other states to the studios. At the stu¬ dios and on suitable sites called “loca¬ tions” scenes are photographed upon reels of negative film, and the negative film is developed and edited, and at least one positive film is made. The negative film is then shipped from the studios to laboratories located sometimes in the same states and sometimes in a differ¬ ent state, where as many positive prints are made as may be necessary to meet the demand for the films. The positive films being them covered by copyright are distributed by distributors to ex¬ hibitors in the several states. When the films are projected by an exhibitor upon a screen the final stage of the photo¬ graphic process takes place and there is then depicted what is commonly known as motion pictures. To facilitate the de¬ livery of motion picture films to the ex¬ hibitors most distributors have estab¬ lished branch offices throughout the United States known as “exchanges,” where negotiations for the booking of films are conducted with exhibitors. Sec. 3 A continuous supply of at¬ tractive motion picture subjects is es¬ sential to the successful conduct of a film exchange or motion picture theatre. Certain producers and distributors who by means of direct ownership or through total or partial stock control, leases, operating agreements, or otherwise are also exhibitors enjoy a controlling ad¬ vantage over distributors and exhibitors who are not so affiliated. Such con¬ trolling advantage is theirs by virtue of controlling the production as well as the distribution and exhibition of films. Their control of production and distri¬ bution has resulted in conditions that have made it necessary for many ex¬ hibitors to affiliate with the producers and distributors in order to obtain an adequate supply of suitable motion pic¬ ture subjects, such affiliations being es¬ tablished by means of giving to a pro¬ ducer or distributor control of such ex¬ hibitor’s theatre or theatres through to¬ tal or partial stock control, leases, op¬ erating agreements, or otherwise, or by former exhibitors acquiring a substan¬ tial interest or control in a producer or distributor. As a result of this condi¬ tion, theatres controlled by or affiliated with one distributor are in many cases operated by another distributor. There is an increasing number of cases of con¬ trol of a theatre or group of theatres by two or more distributors. Such com¬ mon, interlocking interest and control by one distributor in the theatres of an¬ other distributor results in restricting the supply of suitable copyrighted mo¬ tion picture films obtainable by exhibi¬ tors who are not so affiliated with a producer or distributor. The continual¬ ly increasing control of motion picture theatres by producers and distributors results in restricting the number of mo¬ tion picture theatres in which may be exhibited the film productions of pro¬ ducers and distributors not affiliated with motion picture theatres. Certain practices have grown up in the istribution of films the continuance ol /hich tends to increase the restrictions hove described and threatens to create . monopoly in the business of producing, [istributing and exhibiting copyrighted notion pictures. These practices ^conist of (a) blind booking and block ooking, (b) unfair discrimination in the llocation of product in favor of exhibiors affiliated with producers and dist¬ ributors and to the prejudice of exhibiors not so affiliated. Blind booking and block booking is he system of booking films whereby he exhibitor is denied the right to view he product he is to lease and to select uch part thereof as he deems suitable o the tastes of his public, but is re¬ mixed to lease all of the product of a dven distributor offered for release durng a given period long in advance o± ,he time when the product is to be del¬ ivered and often before the making of ;uch product has been commenced 1 his system of “blind booking” and block looking” makes it incumbent upon an exhibitor to lease films which are not suitable for his needs and which he does lot want in order to obtain films which ’rom the descriptive matter he concludes iis patrons will demand and which he nust have in the successful conduct of iis business. This system of blind and ilock booking of films requires the exlibitor to show films of poor quality ir to suffer the loss of the rental on 5uch films, and precludes the small proiucer having only a few films a year or inv other producer or distributor having no theatre affiliations, from competing with the producers and distributors be¬ cause the latter by block booking suc_ mrtnrtnnlijp the nlavmg dates Sec. 4. Six months after the date of this act it shall be unlawful for any pro¬ ducer or distributor of copyrighted mo¬ tion picture films in the current of m (Continued on Page 16)