To prohibit and to prevent the trade practices known as "compulsory block-booking" and "blind selling" of motion-picture films in interstate and foreign commerce (1939)

TRADE PRACTICES IN MOTION-PICTURE INDUSTRY 15 on these proposals, and recalling that anti-block-booking legislation had been pending for more than 10 years, said: "Passage of the Neely bill, not acceptance of the producers' eleventh-hour compromise offer, is the solution." Government suit. — The complaint in this case includes compulsory block booking among the many monopolistic practices employed by the Big Eight and asks that such practices be enjoined. It makes no mention of the twin evil, blind selling. The complaint was filed more than 10 months ago and the defendants, employing dilatory tactics, have not yet answered. Moreover, the effective proscription of compulsory block booking and blind selling calls for complicated affirmative as well as negative provisions which would be more appropriate for legislation than for a decree. The primary purpose of the suit is to divorce production and distribution from theater operation. CONCLUSION In reporting the bill favorably,, the committee is confident that it will meet in as moderate a manner as possible a need for legislation that is constantly growing more acute due (a) to the tremendous influence of the movies on the morals, thinking, and culture of the country (admitted by proponents and opponents of the bill alike), and (b) to the monopolistic control which the Big Eight now exert and are constantly increasing over all branches of the motion-picture industry. The contention that the movies have improved in quality since the Legion of Decency campaign in 1934 is irrelevant since the public is entitled to choose even as between good pictures. But the reformation was made only in response to insistent public demand and there is no assurance that even present imperfect standards 24 will be maintained if this legislation is not passed. Experience as recounted at the hearing teaches that, as a rule, such reforms are sporadic, are always forced by outbursts of public indignation, and are usually of short duration. APPENDIX Memorandum in re the Constitutional Basis op the Neely Bill To Prohibit Compulsory Block Booking and Blind Selling This memorandum is filed on behalf of the National Motion Picture Research Council. Its purpose is to show that there is a clear constitutional basis upon which a statute for the eradication of compulsory block booking and blind selling may be rested if the Congress concludes on the facts before it and an appraisal of the public needs that these practices are evils which ought to be stopped. It does not purport to be an exhaustive brief on the constitutional questions involved in the proposed legislation, nor does it attempt to analyze and weigh the evidence taken in the course of the hearings conducted by the committees of the Senate and the House. The facts and opinions gathered in those hearings, together with others which may be adduced in the courts, will have a determinative influence on the question of the validity of the law; for, as will be developed later in this memorandum, the final judgment on constitutional questions of the character involved in this legislation depends upon the determination of questions of fact and the appraisement of economic conditions. 24 The notion that perfection has been attained is negatived by the fact that the Legion of Decency and other organizations still have to classify pictures as "suitable for adults only," "suitable for children," and "unsuitable for any type of audience." _ Harrison's Reports, a motion-picture trade paper, issue of May 13, 1939 (after close of the hearing), says, "Let us glance at the crime pictures that have been reviewed in Harrison's Reports since the first week in January: In the 19 weeks since the first week in January, 142 pictures have been reviewed. Of these 8?, or 5G7Moo, have been founded on some kind of crime theme— either murder or stealing. Of course, not all of them are demoralizing— perhaps one-thhd of this number are harmless; but when one takes into consideration the extraordinarily high percentage of vicious crime pictures, one wonders whether the Hollywood producers realize what the outcome may be."