E. Anything which exploits or depicts persons notorious for some crime or public scandal.

F. Anything which aims to or does assist the election or defeat of any political candidate: Provided, however, That nothing herein shall prevent the commission granting a license or a permit in commerce for a film, otherwise complying with the standards of this section, which aims to or does assist in the election or defeat of any political candidate: Provided, That in the license or permit granted and in the seal furnished there is the statement of the condition that it shall not be exhibited in licensed places of amusement. Nothing herein shall prevent the use of stereopticon slides on the motionpicture screen in licensed places of amusement assisting the election or defeat of any political candidates: Provided, That all the candidates shall have an equal opportunity for publicity for reasonable fees such as shall be fixed by the commission.

G. No license shall be granted to motion pictures—

"(a) Which emphasize and exaggerate sex appeal or depict scenes therein exploiting interest in sex in an improper or suggestive form or manner.

"(b) Based upon white slavery or commercialized vice, or scenes showing the procurement of women or any of the activities attendant upon this traffic. "(c) Thematically making prominent an illicit love affair which tends to make virtue odious and vice attractive.

"(d) With scenes which exhibit nakedness or persons scantily dressed, particularly suggestive bedroom and bathroom scenes and scenes of inciting dances. "(e) With scenes which unnecessarily prolong expressions or demonstrations of passionate love.

"(f) Predominantly concerned with the underworld or vice and crime and like scenes, unless the scenes are part of an essential conflict between good and evil.

"(g) Of stories which make drunkenness and gambling attractive, or with scenes which show the use of narcotics and other unnatural practices dangerous to social morality.

"(h) of stories and scenes which may instruct the morally feeble in methods of committing crimes or by cumulative processes emphasize crime and the commission of crime.

"(i) Of stories or scenes which ridicule or deprecate public officials, officers of the law, the United States Army, the United States Navy, or other governmental authority, or which tend to weaken the authority of the law.

"(j) Of stories or scenes or incidents which offend the religious belief of any person, creed, or sect, or ridicule ministers, priests, rabbis, or recognized leaders of any religious sect, and also which are disrespectful to objects or symbols used in connection with any religion.

"(k) Of stories or with scenes which unduly emphasize bloodshed and violence with justification in the structure of the story.

"(1) Of stories or with scenes which are vulgar and portray improper gestures, posturing, and attitudes.

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(m) With salacious titles and subtitles in connection with their presentation or exhibition, and the use of salacious advertising matter, photographs, and lithographs in connection therewith."

All pictures violating the foregoing standards in subsection (g) are hereby declared unlawful in commerce, and their production, sale, rental, or exhibition within the jurisdiction of the United States is made a misdemeanor. If the commission shall not license any film for any of the above reasons, it shall furnish to the applicant a written report clearly setting forth the reasons for its refusal and a description of each rejected part of any film not disapproved in toto, and upon the applicant's filing in the office in which the application for license is filed a statement under oath by the owner or lessee of said film that the part or parts described have been eliminated from the film and all copies thereof, a license shall be issued forthwith.

(2) EXAMINATION OF SCENARIO.-Upon the payment of $25, the commission shall receive and examine any scenario submitted to it, provided the scenario shall be accompanied with the working script and shall be complete in details and titles according to forms to be provided by the commission. The commission shall approve every such scenario, providing that it conforms to the standards required in this section for films that may be approved. In case the scenario or script shall not conform to the said standards, the commission shall either reject it entirely or suggest modifications. The approval of any scenario shall not, however, obligate the commission to approve the dramatization of

the scenario when the film of it shall be brought before it with an application for a license.

(3) SUPERVISION OF PRODUCTION IN STUDIO.-The commission may, upon the payment of a proper fee, appoint supervisors to assist producers and directors, in the process of production, in applying the standards of this act, as interpreted by the commission,

(4) COPYRIGHT.-Nine months after this act takes effect no copyright shall be granted to any motion-picture film unless it shall be accompanied by a valid license from the commission as herein provided.

SEC. 6. PERMITS, REVOCATIONS, (a) ORDINARY FILMS.-That the commission shall, without inspecting it, issue for any motion-picture film the original or any copy of which has not been condemned by any court of record or rejected in part or as a whole by any censor board or State commission on motion pictures a permit to enter interstate and foreign commerce, only if and when application therefor, as provided in section 7 in the form and manner prescribed by the commission has been made, provided a fee of $10 per reel has been paid.

Any permit issued as herein provided may be revoked by the commission upon complaint that it violates any of the standards required for a license under section 5 and must be revoked upon the complaint of any United States district attorney, or the attorney general of any State or Territory or of the chief of police, or district attorney of any county, city, or town, ten days after notice in writing is mailed to the applicant at the address named in the application. Thereafter any such film may be submitted to the commission only in the manner provided for license.

The action of any United States court or of any court of record in any State, officially condemning any film, or of any State censor board or any State motion picture commission refusing to license any film or any part of any film, shall per se revoke any outstanding permit for said film, and the commission shall cause notice thereof to be sent to the applicant or applicants. But such action of any court, board, or commission shall not prevent the submission of said film for a license as provided in section 5 of this act.

The commission may at any time issue a permit for the entrance into interstate and foreign commerce of any film portraying current events, which contains nothing contrary to the standards required for license under section 5 and is not otherwise prohibited by law without inspection thereof upon the producer thereof filing the prescribed application duly sworn to by himself or his duly authorized agent affirming that the said film contains nothing contrary to the standards for a license under section 5: Provided, That such producer shall keep filed with the commission a bond or bonds for the full unimpaired amount of $50,000, undiminished by any fines or penalties imposed by the commission, conditioned for the faithful fulfillment of the provisions of this act, with two sureties or one surety company thereto, each duly approved by the Secretary of the Treasury, in a penalty for a false or misleading application for any such current event film of from $500 to $1,000, and after three such offenses, of imprisonment for from ten days to one year, each separate exhibition of any scene which violates any standard or requirement contained in this act being deemed a separate violation hereof: Provided, That when any application for such permit is made the chairman shall designate three commissioners or deputies, of whom a majority shall determine whether the application shall be granted: Provided, also, That any permit so granted may be or shall be revoked by the concurring votes of any two commissioners or deputies upon ten days' notice in writing to the applicant, in accordance with the provision in this section for the revocation of the permits for ordinary films. Thereupon the film may be submitted to the commission for license, as though no permit had ever been granted or revoked.

A copy of each license or permit, or a certificate of its issuance, shall be provided by the commission to accompany each copy or duplicate film licensed or permitted, as in this and the preceding sections provided in interstate and foreign commerce.

Any change or alteration in a film after license or permit, except the elimination of a part or except upon written direction of the commission, shall be a violation of this act and shall also make immediately void the license of permit therefor.

The commission may at any time recall a license and after review revoke it upon the ground that it violates any of the provisions of section 5.

SEC. 7. APPLICATIONS.- That any person, firm, or corporation desiring a Federal license or permit for interstate or foreign commerce for any film shall first make sworn application in writing in the form and substance prescribed by the commission and shall pay the required fee. Said written application shall contain a duly attested statement of the date of the release that the said film and none of its copies has ever been condemned by any court or by any city or State motion picture commission and is in no way contrary to the laws of the United States, and has nothing in it which in section 5 prohibits the granting of a license to any film in interstate commerce. Every such application shall immediately be given a serial number which shall by the commisison be made a permanent part of the principal title portion of the corresponding film and every copy thereof.

The commission shall furnish for each original film or copy a label of film in such length and style as the commission shall deem necessary, which shall be a permanent title portion of each picture or film and which shall contain the seal as adopted by the commission, the serial number, the title or name of the film, and the statement whether it has been licensed or has been permitted without inspection and if it is for family use as provided in section 33. The forgery of any label or the use of any label with any film to which it does not belong shall be a violation of this act, and, in addition to other penalties, shall forfeit the ownership of the film to the commission.

Within one day of the filing of an application for a license as in section 5 provided a time for the submission of the film shall be set, which time shall in no event be more than eight days after the date of the filing of the application. At least one of the commissioners or one of the deputy commissioners shall attend upon and be present throughout the exhibition of the film submitted. The applicant may present such evidence in addition to the films as may be necessary or proper to make clear the purpose and intent of the film. All oral evidence shall be recorded by the commission. The license applied for shall be granted or refused within one day after the hearing.

But any license or permit obtained upon a false or misleading affidavit or application shall be wholly void ab initio.

SEC. 8. SCIENTIFIC, EDUCATIONAL, INDUSTRIAL, RELIGIOUS, NONSTANDARD FILMS.— The commission shall issue a permit for every motion-picture film of a strictly scientific character intended for use by the learned professions, without exexamination thereof, provided that the owner thereof, either personally or by his duly authorized attorney or representative, shall file the prescribed application, which shall include a sworn discription of the film and a statement that the film is not to be exhibited at any private or public place of amusement.

The commission may, in its discretion, without examination thereof, issue a permit for any motion-picture film intended solely for educational, charitable, or religious purposes, or by any employer for the instruction or welfare of his employees, provided that the owner thereof, either personally or by his duly authorized attorney or representative, shall file the prescribed application, which shall include a sworn description of the film.

The commisison shall also grant a permit for any film or copy thereof to be used in any miniature motion-picture machine exclusively for educational, social, religious, or church purposes, where the film is of a size and perforation differing from the standard used in theatrical machines, and where the film complies with the requirements and standards of this act and violates no provision of law. The commission may or shall revoke any such permit as provided in section 6.

No fee shall be charged for any permit granted under this section, except that the commission shall provide and charge for the label of film for identification as a permanent part of each film which is granted under this section.

SEC. 9. FEES.-That the commission shall collect from each applicant for a license or a permit, except as otherwise expressly provided in section 8 of this act, a license fee of $10 for each one thousand feet or fraction thereof of film and $5 for each additional copy thereof licensed by the commission: Provided, however, That upon the expiration of six months from the date of approval of this act, and from time to time thereafter as circumstances warrant, the commission shall revise and fix the fees at such sums as will produce no larger income than is necessary to support the work of the commission, including salaries and all other expenses, and pay $1,000,000 for the

work of the United States Bureau of Education as provided in this section. The commission shall not reduce the fees for licenses and permits until the receipts are sufficient to pay this annual appropriation and shall have power six months after the act goes into effect to raise the fees sufficiently to provide for the annual appropriation to the Bureau of Education.

The revocation or cancellation of any license or permit issued shall not entitle the grantee thereof to the return of any fee paid, but the amount of any permit fee paid shall be credited upon the amount otherwise due for any subsequent license fee for the same film.

All fees received by the commission shall be paid monthly into the Treasury of the United States.

The Treasurer of the United States shall pay monthly from the surplus of the moneys received from fees and other sources above the expenses of the commission a sum not to exceed $1,000,000 in each year to the Bureau of Education for the manufacture, distribution or exhibition of educational films or slides for the purposes of visual education and training in the public schools and elsewhere in the United States.

SEC. 10. REVIEW.-That any applicant for a license shall, in case of refusal by one commissioner or deputy, have the right to review by three of the commission, whose decision shall be determined by the concurring votes of a majority within ten days of the filing of the application thereof for review and submission of the film. On such review the party shall not be limited to the evidence upon which the first refusal was had.

Should a license be refused after such review by the commission, the applicant may, at any time within ninety days from the date of such refusal, appeal from the ruling of the commission to the Court of Appeals of the District of Columbia: Provided, That a decision by the commission shall stand until reversed by the court. Such appeal shall be perfected in the following manner; that is to say, a petition verified by the applicant shall be filed in the the office of the clerk of the said court setting forth a description of the film and a complete record of the original application for license, the inital action thereon, and the action of the commission on the application for review. The court may, on the hearing of such appeal and as a part thereof, attend throughout an exhibition of the film and receive such other evidence as shall be offered by the applicant and by the commission.

In any case where a license has been granted without the film being viewed by three commissioners any three citizens of any State, Territory, or District may, within ninety days after public exhibition thereof in any licensed place of amusement in said State or District, appeal to the full commission; and if the license has been approved by a majority vote of the full commission, any three citizens of any State, Territory, or District may appeal to the Court of Appeals of the District of Columbia within ninety days after the picture has been first shown in that State, Territory, or District. Any appeal made by three citizens, as herein provided, shall be made out in form to either the commission or the court, to be forwarded to the court if it belongs there. The picture shall not be exhibited thereafter until the final appeal has been rejected.

SEC. 11. UNLAWFUL TRANSPORTATION.—That no person, firm, or corporation shall carry or transport, or cause to be carried or transported, any motionpicture film in interstate commerce unless there is for such film at the time in full force an deffect a valid license or permit of the Federal motion picture commission, as in this act specified: Provided, That nothing herein shall be construed to prevent the carriage or transportation of any film consigned to or by the commission: Provided further, That the provisions of this act shall not be construed to prevent the carriage or transportation without a license or permit by or for the producer of his own original film in good faith for any purpose other than for exhibition for hire and before said film shall be wholly or in part copied, reproduced, or in any manner made the subject of duplication. Neither shall any motion-picture film be exported into any foreign country or imported into this country without such license or permit. Nine months after the approval of this act by the President no motion picture shall be imported or exported without a license.

SEC. 12. UNLAWFUL EXHIBITION.--That no motion-picture film shall be sold, leased, or loaned for exhibition or to be exhibited in any place of amusement for pay or in connection with any business, either in the District of Columbia or in any Territory of the United States or in any place where the local police power is under Federal jurisdiction, unless there is then in full force and cffect

for such film a license or permit of the Federal motion picture commission, and unless such film shall contain and exhibit upon the screen either a license or permit as in this act provided in the substance, style, length, and time which the commission shall prescribe.

SEC. 13.-POSTERS AND ADVERTISEMENTS.-It shall also be the duty of the commission, in accordance with rules which it shall prescribe, to supervise all posters, banners, and all advertising matter, wherever used, in connection with and to advertise all motion pictures in interstate commerce. Wherever any advertisement is used for the sale, renting, or exhibition of any film which misrepresents the motion picture as containing scenes, subjects, and titles which it does not, and whenever the advertising matter shall contain the things forbidden for films in section 5 the commission shall revoke any outstanding license or permit of said film.

No person shall be permitted by the commission to register as a dealer unless he shall have entered into a registered valid contract with the commission whereby he agrees if he is a producer to have the motion pictures which he produces to the standards mentioned in section 5, upon penalty of having his registration revoked and of forfeiting his right to produce motion pictures. The aforesaid contract of every producer shall include an agreement to require from all distributors and exhibitors with whom he does business subcontracts agreeing to use only such films as are licensed or permitted by the commission and providing that the violation of these subcontracts shall subject such dealers to the penalty of the revocation of their registration, and of forfeiting their right to distribute, purchase, or exhibit films. If the dealer applying for registration is not a producer, he must enter into a registered valid contract with the commission to obey and conform to the provision of this act.

The commission is empowered to revoke the registration of any dealer upon proof after a hearing that the dealer has broken his contract with the commission or with a producer.

SEC. 14. REGISTRATION OF DEALERS.-After the expiration of thirty days after this act has taken effect, no person, firm, or corporation shall carry on any branch of the motion-picture business in commerce as producers, directors, actors, artists, photographers, costumers, exhibitor he has been and is registered with the commission under exchange agency, commission merchant or dealer unless such rules and regulations as the commission may prescribe, his name and address, the character of the business in which he is engaged, and the kind of service which he furnishes.

The commission shall from time to time ascertain, after such inquiry as it deems necessary, those dealers in commerce who come under the jurisdiction of this act and who have not registered in accordance with this section. The commission shall thereupon notify every such dealer and request him to register.

If, after two weeks' notice, any such dealer shall fail to register in violation of this section, he shall be liable to a registration fee of $5 and if brought to a court to a penalty of not more than $500 for each offense and not more than $25 for each day that it continues, which shall accrue to the United States and may be recovered in a civil action brought by the United States.

The commission may require all persons, firms, or corporations subject to its jurisdiction to file annual or special reports or both in such form as may be prescribed by the commission, or written answers to specific questions regarding the organization and management of their business or their relations to other corporations, partnerships, or individuals. The commission may classify such persons, firms, or corporations and may decide whether or not any person, firm, or corporation comes within its jurisdiction.

SEC. 15. UNFAIR AND DECEPTIVE PRACTICES FORBIDDEN.-It shall be unlawful for any dealer to:

(a) Engage in or use any unfair, unjustly discriminatory, or deceptive practice or device in commerce; or

(b) Make or give, in commerce, any undue or unreasonable preference or advantage to any particular person or locality in any respect whatsoever, or subject, in commerce, any particular person or locality to any undue or unreasonable prejudice or disadvantage in any respect whatsoever; or

(c) Sell or otherwise transfer to or for any other dealer, or buy or otherwise receive from or for any other dealer, any article for the purpose or with the effect of apportioning such films, film rights, or privileges between any such dealers if such apportionment has the tendency or effect of restraining commerce or of creating a monopoly in commerce; or