Evening star., 1941-10-20
Warner TeIIsCourt
He Feared Bioff Would
'ParaIyze' His Firm
':Ilm Chief ExpIolns
Why He Poid $50 900
To Labor Leader
B. the Associated Press.

B. the Associated Press
NEW YORK. Oct 20-An exec
utive Of Warner Bros. pictures testi-
fed in Federal Court today he was
afraid they would paralyze our
business if ne did not meet none
tarY demands which he said were
made on MIN by William Bioff West
Coast labor leader. and George E.
Browne, head of the International
Alliance of Theatrical Stage En-
ployes.
Bioff and Browne are on trial
charged with eXtorting $3.50 900 from
film producing companies III viola
tlon of the Federal Anti-raCketeerlng
Act
Mai Albert Warner. vice presl-
dent and treasurer of Warner Bros,
testified that between April, 1886,
and MAY or June, 1887, he paid in
behalf of his company a total OF
$4,000 to Bloff in inStallments rang
ing from $4,000 to $4,000 each.
Paid Total of S5ll,0O0
The testimony Of Maj Warner a
Government witness, was similar TO
that already given by Nicholas M.
Schenck. president of LoeWS, Inc,
and William Michel vice president
Of Goth Century-FOX Films.
Mr.. Schenck and MI Michel testi-
fed that Biof and Browne were paid
a total of approximately S5llOO
by the two companies
MI. Schenck said BiOff S original
demand was for S2000,000 from the
movie industry, that this amount
subsequently was reduced TO 81 OOo.-
900 and finally cut 10 S5OO00 year
from four major producing COM
panieS and S25 900 a year from small
companies
Mr.. Schenck and Mr. Michel teStl-
fed that LoeWS and 2Oth Century
Fox covered their payments on the
books by increasing expense Vouch-
ers OF executives and giving surplus
amounts to Bloff Mai. Warner gave
similar testimony with respect to
Warner Bros.
Mr.. Warner said that in April,
1886. Nicholas Schenck discussed
the matter with him and told him,
You'll have to pay this man the
$4,000.
The witness said that BiOff tele-
phoned him a few days later and
then came to his New York CITY
Office and said, You know what I'm
here for.
Take the Consequences.
"T said yes. I spoke TO Nick
Schenck and he said we'd have to
paw YOU $4,000 or take the conse-
uuences.' Mr.. Warner testified
In further conversations Blof told
him. he said. that payments would
have to be made in cash.
You know We have no such sums
OF cash like that lying around. Mr.
Warner said he told Biof I said
Id have TO DO some thinking about
IL and the best We could possibly
do would be TO accumulate $4,000
at a time and that would take a
long time
BY the time get $40 900 split up
among the boys. it will be peanuts,
he quoted Biof as replying.
The witness said he discussed the
situation with Samuel Carlisle. con-
troller of the company, and in
structed Mr.. Carlisle 10 raise the
money by padding executive expense
accounts, adding to the cost Of con-
ventions and the eXploitaticns OF
pictures.
Toward the end Of MAY. the Wit
ness said BiOff telephoned and
asked; Have you any money
readv?'
Had $4,000 Ready.
Yes. I have $4,000 ready-come
over" Mr.. Warner said he replied
He said he left the money in an
envelope with his secretary and
Bioff later went TO the office and
got It,
The same procedure was followed,
he said, at the end of August. 1886,
and a the end Of December, 1896,
when two payments OF $1,000 each
were made He said in the middle
Of February. 1887. he instructed Mr..
Carlisle to make $4,000 payment.
The next time he heard from Biof,
Mr.. Warner said, was in April, 1887,
when BlofT telephoned to inquire
whether he had more money ready:
L was under the impression we
had paid $4,000 and that our obliga-
ton to YOU was through the wit
ness said he told BiOff
oh, no. you'll have to pay wight
along, $4,000 each year. he quoted
Bioff as replying.
We'll there's no other way out
of it for me he said he told BIoff.
arranging for Bloff to call a his
Office that day when a $4,000