New Britain herald., 1927-06-24
Cuts, Ranging From 10 to
Is Per Cent, Affect All
From Presidents Down
to Clerks-N0 Statement
as to Whether Savings
Will Be Passed on to
Theater Patrons.

Hollywood, Cal. June 24.-lR-
Sixteen motion picture companies
including all major producers, were
on record today as committed to q
necessitated drastic economy pro-
gram involving immediate ten to
twenty-five per cent reductions in
salaries. The slashes affect presi-
dents. vice presidents, contract
featured players. and other en-
ployes down to fifty dollar a week
workers.
There was no comment as to
whether any of the savings made by
the salary reductions would be pass
ed on to the patrons of the many
theaters controlled by the concerns
participating in the salary cuts.
Companies In Agreement
The companies are: First Nation
al. Universal, Paramount Famous
Players Lasky. Metro Goodwin
Mayer. De Mile. Harold Lloyd
Corporation. United Artists, Fox,
Metropolitan Pictures, F. B. O..
Warner Brothers. Hal Roach, Mack
Sennett, Jack White Comedies,
Christie Comedies, and Samuel Gold
wyn, Inc.
The production cost retrenchment
which executives of the companies
announced after conference late
yesterday, will have the far-reach-
ing effect of reducing incomes not
only in the production departments
at Hollywood. but in distribution.
eastern executive offices, and prob
ably soon, to the movie company
controlled exhibition houses.
$4,000 Persons Affected
Around $4,000 executives, salaried
officers, directors and stars will
shortly feel the axe digging into
their incomes. An estimated 10000
more non-contract players, extras,
Office workers. film editors. camera
men. production employees, and dis
tribution managers and employees
will suffer an immediate salary
slash Of above ten per cent. In this
Connection 1t was printed out that the
movies employ a negligible number
Of persons at salaries Of less than
the stated minimum of fifty dol
lars weekly.
May Affect 100000
II all branches of the movie In
dustry become affected. which OBJ
servers pointed out they necessarily
must, the force operating the vast
network Of movie company owned
exhibition houses would bring the
total of those feeling the income
circumscription to possible $780,
900. The movie industry as the
outcome of many recent huge mer-
gers of theater chains now con-
trolls approximately three-fourths
of the country's film outlets.
The weekly payroll OF the Holly
wood studios and all its local In
dustry branches totals 100000.
The drastic economy cut will keep
minimum of 100000 a week of
this in the banks instead of pour
ing it into movie peoples pockets.
The cut. figured on an average be-
tween the maximum and minimum
IS to 10 per cent slashes. might
raise the weekly saving to $780,
600.
Economically Unsound
Economically unsourd condi-
tions," the announcement said.
that prevail In the motion picture
industry today, resulting in prohi-
bitively high cost of production
which In measure Is directly at
tributatie to the artiflcially high
salaries paid in all branches" was
the reason stated as being behind
the action of practically the entire
movie industry.
Contract featured players will be
requested to consent to the reduc-
ton to which executives and many
other employees have already bowed.
New Contracts
The principle of salaries adjust
cd strictly on the basis of the ac-
tual value of the services rendered
will be followed in the renewal OF
all new contracts
Conferences. both in New York
city and Hollywood over a period
of several weeks. preceded the final
session at which the decision was
unanimous.