The Wilmington morning star. [volume] (Wilmington, N.C.) 1909-1990, 1944-01-06
BY WESTBROOK PEGLER

" Isaoefs His articles serve the good purpose Of
BY WESTBROOK PEGLER
NEW YORK.-The trial Of the Chicago rack
eteers and that low ana thieving thug, Louis
kaufman, Of Newark, is over and it has been
estaollshed by the verdict that they conspired
with George Browne and Willie Bioff to extort
large amount of money. possibly million
dollars, from the magnates of the movie in.
dustry. The six Chicago racketeers got 10
years each and Kaufman, the business man.
ager of the Stage and Movie Employees I'm.
ion, got seven years.
During the trial. and for some time before,
observed silence on the subject but now
that 1t is done l will say that for long time
have agreed in part with the contention of
the defense that the movie magnates, who
were depicted as innocent victims, were very
willing to be vctimized. Yes extcrtion was
present because, through the power of union
OF the ALL and by authority OF the Wagner
act, the crooks were in a position to shake
down the industry. But I insist that there
was meeting of the minds in which the
employers willingly collaborateo 10 get an ad-
vantage over the workers CT the industry and
profit for themselves.
What sort of people are these enormously
rich masters of entertainment and propaganda
that they would find pleasure IN social rela-
tons with such vile thing as Willie Bioff
a dlvekee"@' and master of prostitutes? Yet
we found entertaining him in their homes
and send, him to South America and to
Europe on de luxe cruisers and sending flow
ers and compliments to MS wife and ordering
their representatives in England to roll out
the red carpet for him and make his visit
pleasant.
1 say they were socially and morally akin
and that it was unfortunate that during this
trial, which was actually a great expose, the
trend Of the testimony accentuated only the
crlmlnallty OF the defendants anc gave little
emphasis to the character Of the very indus
try, itself, which nevertheless has had the eff
frontery to smear the American press and
Congress and issue disguised propaganda for
communistic groups. It is a dirty industry
in which dirty men of shady background have
great influence, and these same men have
also moved into national politics il an oblique
approach.
l say the industry enjoyed icing victimized.
even to the extent OF million dollars, if that
was the proven figure of tn, loot, because
l approached two of the most influential mag
mates, Joe Schenck and one of the Warner
brothers, in Hollywood i'll the winter of 1888,
suspecting but not knowing what was going
on, and they both lied about their union rela-
lions, insisting that everything was just fine.
If they had really wanted 10 be free of the
extortioners they then had the opportunity to
tell their story to millions of readers for a
starter and, in the general folloW-up which
certainly would have ensucd i'll oil the news
papers, they could have aroused the whole
country. These meetings with Schenck and
Warner were to have been the subject of my
testimony when James ID. c. Murray, of the
defense counsel, asked me to come to the
federal court. He was trying t. prove bribery,
in which case the extortion charge would have
gone free. l was not trying to acquit them
but did feel that anyone who had information
bearing on the case had a duty tc testify on
request Mr.. Kostelanetz, in charge of the
prosecution, quickly blocked that line of tes-
timony, however. And l was cut and gone
in five minutes.
1t has sometimes been charged that l am
partial to crooked employers in scandalous
relations between unions and industry. I new
er have been, and this is on, case in which
l am convinced that the employers deserve
the official attention Of the United States De-
partment of Justice. l felt no personal re-
sentiment because these men lied to me and
temporarily suppressed the story. 1t IS re-
porters job to get the facts ana l like my
work But do think it should be understood
that these movie magnates could have blasted
the conspiracy to bits if they had wanted to,
not only through the press but through some
official agencies, including thu new deal gov
eminent which has been their friend
One thing more. For years and years, fea-
tured reporters have been stationed in Holly
wood and writing gossip and trash about high
salaries, personal feuds, parties and the like;
but this evil situation developed to the size
of a historic scandal and they never learned
anything about it.
While we are naturally opposed to the spread