FILM STUDIOS

Hokitika Guardian, 13 January 1932, Page 7

FILM STUDIOS

t> \ ECONOMY AT HOLLYWOOD. CUTTING OVERHEAD EXPENSES SAN FRANCISCO, Dec. 9. Depression has been a " long time reaching Hollywood, but after two years of decreased attendance at theatres and diminished revenues, motion picture producers have decided something should be done about it. There have been few open statements that radical slashes would be made in expenses and salaries, but there is an undertone in Hollywood that does not speak well for high salaries and Imammoth productions. Host of the studio directors have admitted the overhead must be cut, but few have announced any definite plans. One of the first movements towards trimming expenses was the merger ot R.K.O. Radio and 8i.K.0. Pathe. Before long, the production of the two companies will' be bandied by one force of workers instead of two. Warner Brothers First National admitted they have asked their high-salaried employees to take voluntary reduction. It was indicated that star* whose salaries J fifty be alfedted ate Constance Dfennett, who is reputed to receive 30,000 dollars a week, while working; William Powell, said to receive 18,000 dollars each working week; John Barrymore and Richard Barthelmess, acting for the reputed wage of 15,000 dollars weekly; Douglas Fairbanks junr., and George Arliss, said to receive 12,500 dollars weekly, while working; and George Bancroft, who is said to receive 10,000 dollars. It js more probable, however, that these figures are heavily exaggerated. “We do not want to curtail production,” Warner Brothers-First National officials declared in Hollywood, “but we must cut expenses, so we have asked employees to eo-operate.” Fox Studios denied a report that certain productions now under way had been halted. Metro-Gold wynMayer studios stood alone in their announcement that no important change had been made or planned. “We have eliminated waste and unnecessary expenses,” officials of the corporation said, “but it is silly to cut the wages of stars. We have .not been affected seriously by the depression.” Paramount decreased its operating expenses several thousand dollars in a wek about six months ago. Wages of stars were not reduced. While some of the motions picture executives in Hollywood evaded statements on reports that salaries of stars and directors were to he cut, it was admitted that important economies , r were being affected. Mftily meetings of alt the leading executives of the industry with 'Mr Will H. Mays iittve "been under way fob ft week, At one large studio work on three pictures to go into production has been halted,

Hollywood immediately attributed this action and other economy moves to new Eastern alignments. Many readjustments have been made in all of tlie larger studios, including lopping off non-productive departments trimming others, elimination of many writersand thinning out staff at taehes.

Every effort has been made by the industry to keep as many technical workers employed as possible through rotation of work and other devices. There was a feeling in Hollywod that the highll’-paid stars and directors would be the next to feel the effect of the readjustment process. According to authentic reports some contracts already have been adjusted without publicity. Renewals of contracts have been on the downward grade. The movement toward lower salaries for stars is not the first that has struck the motion picture firmament. A decided move in that direction was under way just before the advent of the talkies. Introduction of speech in the movies opened up a new field for stardom, and those who “clicked” in the talkies wrote their own salaries tickets. New it appears that these tickets—or some of them, at least—are to be written.

Most of the big stars have ironclad contracts calling for big money, many of which have a long time to run. They could, of course, resist any concerted salary cutting if they desired, but they might find it difficult to negotiate new contracts later if they take a defiant stand now.