FilmIndia (Jan-Nov 1942)

Film magnates Practise Crimes Sensational Hollywood Scandal Leading Producers Involved When Indians see an excellent Hollywood film and applaud it with wild enthusiasm, they come very near considering the Hollywood producers as "gods" with great principles and lofty ideals. When pictures like "Louis Pasteur" and "Emil Zola" are flashed on the Indian screen, our critics rise in temper against our own producers and in the midst of the invectives heaped on cur own people, flattering praise is showered on the American producers. Now these "gods" have been found to have the proverbial feet of clay. In a recent sensational case in an American Court, George E. Browne, vice-president of the American Federation of Labour and president of the International Alliance of Theatrical Stage Employees and William Bioff, known as Brown's "personal representative" were sentenced to eight and ten years imprisonment respectively and $ 20,000 fine each being found guilty of extracting $ 550,000 from four major motion picture producers. The evidence produced before the Court during this trial builds up a sordid story of graft and corruption and of heinous betrayal by trade unicn leaders of the trust and confidence of their members. Temporarily it may do a lot of harm io organised labour in the American film business, but eventually it will do good, for the I.A.T.S.E. has at last rid itself of a junta of gangsters and racketeers who used the Union for no other purpose than to lino their own pockets. Although the Government indictment mentioned the sum of $ 550,000 as the sum extorted by Bioff, and Browne frcm the industry as the price of industrial peace, Bioff actually received $ 828,977, according to the evidence of the executives of four major producers. The following are the payments reported by witnesses: — Nicholas M Schenck (Loew's) $ 1935 .. ... 150,000 1936 .. 50,000 1937 .. .. 50,000 Wm. C. Michel (20th Century-Fox) 1936-40 .. o. 90,000 Major Albert and Harry Warner (Warner Bros.) 1936-37 . . . . 102,500 Austin C. Keough (Paramount) 1936 .. .. 27,500 1937 . . . . 72,500 STOP PRESS As is usual with the Fazalbhoy family known for its pioneering spirit, Mr. M. A. Fazalbhoy is once again on the lookout for doing something substantial for the Indian film industry. His latest activity constitutes the establishment of a bank known as Associated Banking Corporation with a capital of twentyfive lacs which will be shortly established in cc-operation with Mr. Cassamally Munji Nathoo. Two of the leading Indian film financiers viz: Sardar Chandulal J. Shah and Mr. Maneklal Chunilal have also agreed to become directors of the bank. This bank will take a very active interest in the affairs of film finance and we hope that under the guidance of Mr. Fazalbhoy and other film personalities who are acting as directors this institution will really prove useful to the Indian film industry. In addition, Schenck testified that to settle a theatre strike in 1935 R.K.O. paid $ 50,000. There was a further sum of $ 236,477 paid between 1937-41 in commissions on M.G.M. film stock purchases. Chief witness for the Government prosecution was Nicholas M. Schenck. He stated that in April, 1936, Browne called on him with Bioff. Bioff dispensed with customary formalities and said right out: "Look, I want you to know that I am the bess. I elected Browne. I got him the job as president of the I.A.T.S.E. I got to get $2,000,000 from the motion picture industry." "You're crazy," said Schenck (according to Schenck). "Well, that's what has to be," said Bioff. "It will cost you more than that if ycu don't pay. Think it over." Liter Bioff and Schenck met again, after Schenck had conferred with Sidney Kent. "I talked the matter over," said Bioff, "and maybe you're right. Two million dollars is too much. I'll take a million." When Kent and Schenck informed him they wouldn't pay, Bioff said— "I want it. I must have it and I expect it. I want to leave for California, and I must have an answer in two days so I know what steps to take." Two days later there was another meeting. Bioff, according to Schenck, then said — "Look, you may be right. We may all get into trouble with that much money involved. But there's no use arguing any more. I'll reduce it to $50,000 a year each for the big companies and $ 25,000 a year each for the small companies. Think it over." They thought it over and a few days later Schenck and Kent told Bioff that they had no choice and would go through with his demands. Bioff of course wanted cash and a little later there occurred what must have been an extraordinary spectacle. Schenck and Kent, each with a bundle under their arms, took a cab to Bioff's room at the Waldorf Hotel. "Here's the bundle," Schenck announced as he entered the room. He tossed the package on one of the twin beds. Bioff took the bundle (containing mostly $ 100 bills) and counted it from one bed to the other. Then Browne counted it. Then they both counted it together. When Bioff and Browne both agreed that the money was correct Schenck moved into the window corner and Kent tossed his bundle on the bed. The process was repeated. Accord 57