full-line forcing and blind selling. It will be to the advantage of the community as a whole if villagers will write to Congressmen and urge support of the Neely bill. Tremendous influence is being exerted to prevent its passage. From the Kansas City Star, an article headed, "Law May Force Hollywood To Turn out Better Movies-By Striking at Present Abuses in Methods of Distribution, the Neely Bill Might Compel Producers to Fire Race Track Advisers and Hire Competent Talent." This is a long article, and I am going to ask to include only certain excerpts. Statements relative to block-booking contracts were supplied to this column by the representative of one of the larger motion-picture exchanges in Kansas City. It now appears these statements were half-truths and were designed to be misleading. *** The theater manager has bought a large section of stratosphere that may turn out bright or may turn out cloudy. * * * The bank is lending money to the studio to make stories that have not yet been thought of because enough small theater managers have been highpressured into pledging themselves to buy the embryonic pictures. * * Now, with the year's money in the bank, with all salaries assured, and with an outlet for its product, regardless of how good or bad, there is no sharp economic compulsion for the studio to make good pictures or to hire competent men. * Probably the sting of the Neely bill, if it becomes a law, will send them back to work. When each picture is sold on its own merits a run of flops will put those big salaries in danger. It will no longer be safe to leave the major decisions to assistants. * * * I know of one man who draws a huge salary as a motion-picture executive because at a moment's notice he can tell his chief the batting average of every baseball player in the country and the football scores of every major team for the last 5 years. * * * Whatever advantages or disadvantages the Neely bill may bring to the movie economic balance, it must be recognized as a threat to the intrenched incompetents of Hollywood. Now, Mr. Chairman, I want to conclude, with your permission, with the following statement. Perhaps you are glad to hear me say that. The public proponents have established that, first, by reason of this mass distribution of carefully staged drama with full scenic and auditory accompaniment, the movies have become a powerful force in the lives of all Americans, "conditioning the thoughts of men everywhere." Second, by reason of this magnified and life-like appearance and actions with reproduction of sound, they teach youth many ideas, attitudes, and conduct, without experience, and constitute a school of life. Third, by bitter experience, 1921 to 1934, the American people have found that self-regulation of the producers did not result in a consistent showing of fine, wholesome pictures, and that since 1934 a large section of the public has been forced to maintain an organized national boycott of indecent pictures. Fourth, because localities differ in customs and taste, local control of pictures is desirable. Fifth, because local self-government protects liberty, local control, of pictures is desirable. Sixth, by reason of two trade practices in interstate commerce known as compulsory block-booking and blind selling, independent exhibitors are deprived of a power of choice of the pictures to be shown in their theaters and as a result (a) said exhibitors are unable to show pictures their patrons want, (b) said exhibitors have been and are forced to show inferior or objectionable pictures, (c) their patrons are unable to hold them responsible for what they do show, (d) their patrons are subject to the risk of a repitition of the cycle of sex films. of the twenties and thirties whenever the producers decide to disregard the national boycott, (e) the children of the entire Nation are taught life according to the ideas and wishes of distant directors of one vast entertainment business. And I might add the children are taught "reel" life and not real life. Seventh, by filling up the limited screen time of independent theaters through the use of two trade practices, major producers have been able to monopolize the exhibitor market in the United States and to exclude independent producers therefrom, except at their majors' sufferance. Eighth, by reason of waste and high salaries, production costs and admission prices are higher than necessary. The Neely bill would prohibit compulsory block-booking by a simple provision enforceable by the Department of Justice and would eliminate blind selling by requiring an adequate synopsis. Local demand would then be able to control its local programs and secure better pictures. The CHAIRMAN. We thank you, Miss Lyford. Mr. McGRANERY. May I ask one further question? The CHAIRMAN. Yes; Mr. McGranery. Mr. MCGRANERY. I would like to get your comment on this before you leave the stand, Miss Lyford. Miss LYFORD. Yes. Mr. MCGRANERY. Mr. Pettingill some time back suggested that you or your organization considered Mr. Breen and his organization and work out on the coast as being innocuous. Did you mean to say that? Miss LYFORD. No; I think I spoke very highly of Mr. Breen. I intended to do so. He is doing a very excellent job. He is doing work that is difficult for him to do, for he has to satisfy producers, directors, and the public. I think the further point I made was that he is there as the employee of the producers and they might decide to abolish the fine work he is doing at any time. I have the greatest admiration for what Mr. Breen has tried to do, and is doing. He can do and does much to enforce the code as long as they decide to keep him. I think that finishes my statement, Mr. Chairman. Mr. HINSHAW. I would like to ask you one or two further questions if I may Miss LYFORD. Yes. Mr. HINSHAW. Is it not true that this proposed legislation presupposes the fact that the local community can exercise a definite control over the exhibitor? Miss LYFORD. Mr. Hinshaw, will you define what you mean by "control"? Mr. HINSHAW. Well, you use the words "freedom-community freedom." Doesn't that presuppose that some local control over the exhibitor can be exercised? Miss LYFORD. Well, I think it must start with public opinion and exactly what the commuuity is going to represent to the exhibitor as being the public opinion of the community. And it is real public opinion on such matters as this that we want, because that gives you the interest and support of the citizens. It is something the businessman wants to know so that he can ascertain what the public wants. He is a businessman, just as any other businessman in the community, and is interested in satisfying his patrons. Mr. HINSHAW. Is it your understanding that the procedure for the exhibitor would be to take several hundred synopses that are offered to him and examine them with great care in order that he may be able to satisfy the desires of his community? Miss LYFORD. Mr. Hinshaw, I suppose it might be done that way; I should doubt it very much. Mr. HINSHAW. Well, what is your suggestion? I want to find out how this thing is going to work out. Miss LYFORD. I tried to indicate that by presupposing a conference between the exhibitors and the representative groups in the community. Having been a community worker for a great many years in different parts of this country I would suggest that the representatives of the various groups, such as the League for Women Voters, your Kiwanis Club, the Rotary Club, the Parent-Teachers' Association, and various others, including the local branches of 34 national organizations supporting this bill, Mr. Hinshaw, would get together with the exhibitor, and this is about what I imagine they would say: "We have worked hard to see that you are given the freedom of selecting the type of pictures we want for our community. Now, you are given an opportunity to show the kind of pictures that our community wants." And they might say that such-and-such pictures, according to public opinion, represent the taste of the community. Mr. HINSHAW. Pardon me; I think I understand that aspect of it. Miss LYFORD. Yes. Mr. HINSHAW. And you explained that a moment ago, but I am going one step further. When it becomes the duty of the local exhibitor to make the selection, is he going to examine several hundred synopses and pick out the ones that he thinks may be box-office receipts, or is he going to select those that will conform to the desires of his community? Miss LYFORD. Well, Mr. Hinshaw, I think he would be responsive to public opinion. I think when he is told that they want to see certain kinds of pictures he will endeavor to supply them. I can imagine the representatives of organizations would say: "You were able to show some good pictures last year and we would like to have pictures of that same type for the coming year; and you had certain pictures that were adapted to children's entertainment; we would like more of them for the coming year." And I think a good exhibitor, a good businessman, would look over the synopsis carefully to get a line on the type of pictures available for the ensuing year. Perhaps to his reply to the community groups is going to be something like this: "Well, the following pictures are offered"-and give a brief description of them. Or, he may simply use his own judgment, after having discussed with the representatives in his community what, in their opinion, would be the type of pictures desired. That would be my personal opinion of two ways it might work out in practice. Mr. HINSHAW. You understand I am trying to get the mechanics of the bill, and your opinion will help me in finding that out. Miss LYFORD. Yes. Mr. HINSHAW. That is the question which we must pass on. Miss LYFORD. Yes. Mr. HINSHAW. And this bill sets up certain mechanics that must be carried into effect by the exhibitors and the producers perhaps who would be aided by public groups in the communities. Miss LYFORD. Yes. Mr. HINSHAW. And he has to make a selection; because, after all, he has coming to him something like 400 pictures to choose from; Í believe that was the figure that you gave, was it not? Miss LYFORD. Between four and five hundred. Mr. HINSHAW. Between four and five hundred pictures to choose from? Miss LYFORD. Yes. Mr. HINSHAW. Now, if the synopsis has any value at all it has a value in making the selection of the pictures, either to help him to select or for the group working with him to select. Miss LYFORD. Yes. Mr. HINSHAW. Would it not be necessary for him to read the synopsis with a certain degree of caution? Miss LYFORD. Mr. Hinshaw, I should be of the opinion that it is not going to be necessary for him to read all of them word for word. As a motion-picture exhibitor he certainly knows something about the kind of pictures that are going to meet with public favor in his community; I do not think it would be necessary for him to read over all the synopsis in complete detail. For instance, I think that he would look over a certain number of children's pictures that he expected to run in his theater; that would just be the natural businesslike thing to do. He would want to know the type of pictures that are to be shown children. I do not think it would be his policy to simply say to the representatives of community groups: "Here are four or five hundred pictures; make the selection; I do not care what I show; I am willing to take any of them." I do not think that would be very businesslike; I do not think any other merchant, handling other merchandise, would do business in that way. Mr. HINSHAW. Well, the bill prescribes that— such synopsis shall be made a part of the lease and shall include (a) a general outline of the story and descriptions of the principal characters, and (b) a statement describing the manner of treatment of dialogs concerning, and scenes depicting, vice and crime, or suggestive of sexual passion. It would be necessary for the exhibitor to examine these synopses with considerable care, would it not? Miss LYFORD. Mr. Hinshaw, I think that the synopses would be very brief; they would be easy to read and would give the principal facts. Mr. HINSHAW. A short synopsis? Miss LYFORD. Yes; but an accurate synopsis. It would not mean 50 pages. I think you can give an accurate synopsis that will be very brief but accurate. Mr. HINSHAW. But here you are dealing with the question of a contract to be entered into between the exhibitor and the producer on the basis of a synopsis, and one scene that might not last for more than 15 seconds would need to be described. I can readily understand you might have a brief synopsis, but why not say so. This simply how states that the synopsis must be accurate but that it shall give a general outline. I am simply trying to find out how you think it is going to work out in practice. Miss LYFORD. I think this, Mr. Hinshaw-that we have tried to work out as best we could in drafting and redrafting this legislation, and it may be that some other word would be more suitable. However, I think this is the best wording we could select. As I said, there may be other words that would be better, but after working over a long period of years, and on getting the advice of Professor Chamberlain, of Columbia University, who I believe is an expert in legislative drafting, we believe we have language that would carry out the intent of the bill. I may be wrong, but I think it is not necessary to have a long synopsis, something that would be impossible to read. I think you ought to have a very simple, clear statement of what you want to know in the synopsis, and I think that can be done under the words used in the proposed bill. We have tried to use words that would have a reasonable, practical meaning. Mr. HINSHAW. I understand how that is arrived at. Miss LYFORD. Mr. Myers submitted just the other day a specimen synopsis which I think would be sufficient. I think that is about what might be used by the producers themselves. But that is something which the producers and the exhibitors can work out. If the producers wanted to offer a much more accurate synopsis, or a longer one, of course that is something on which they can advise with the exhibitors, in order for them to know the most practical way of describing the type of pictures that are being offered. That is what the exhibitor wants to know. Mr. HINSHAW. I can understand how it would be a lot easier, so far as the exhibitor is concerned, to preview a picture, after it has been produced, and I can also understand how it would be easier for the groups here to so exercise their influence in selecting a picture, which they think their community might want to see. Now, this bill, as I read it, does not prevent block-booking. Miss LYFORD. No, sir; it prevents compulsory block-booking. Mr. HINSHAW. That is right. Now where an exhibitor signs up for 20, 30, or 40 pictures, as the case may be, he has that privilege, and it is presumed he would do that after an examination of the synopses? Miss LYFORD. Yes, sir. Mr. HINSHAW. Certainly there would be no cancelation clause in the contract, because after he has examined the synopses for the pictures, presumably he would be satisfied. Miss LYFORD. Yes. Mr. HINSHAW. Is that correct? Miss LYFORD. I think after he has exercised his choice and entered into a contract on the basis of the synopsis, that he is tied to it. Mr. HINSHAW. That he should be held to the contract. Miss LYFORD. Yes; when he exercised the freedom of choice, after examining the synopsis which he has to guide him. Mr. HINSHAW. Now suppose a picture is made and after it has been made is being distributed, or is on a second-run, or third-run, or in a fourth-run theater, and it is decided by a group in the community |