Film Week

P:C. At Loew's Inc.'s annual meeting in Manhattan, stockholders learned that in the last two years $2,670,939 had been paid to a partnership composed of Irving Grant Thalberg, Louis B. Mayer and J. Robert Rubin, dominant officers in Metro-Goldwyn-Mayer, Loew's producing subsidiary, not as a bonus but as their share of the profits under a contract signed when M-G-M was born of a three-cornered merger. Mr. Mayer and his two partners had turned over all their assets--properties, stars, contracts, furniture, cash--taking no stock in exchange but a 20% interest in MGM's potential profits. Though the two other concerns were losing money at the time, the partners were willing to gamble everything on their ability to make pictures. And they won. An argument later developed about the price Loew's was to pay its producing subsidiary for its pictures. To settle it once & for all, the contract was modified to give the Thalberg-Mayer-Rubin partnership a proportionate cut in the profits of Loew's the parent company. P: Rebellious stockholders failed to oust the Brothers Warner--Harry, Albert & Jack--from control of Warner Brothers Pictures Inc. at a five-day annual meeting at Wilmington, Del. While some 30 clerks counted proxies, the 700 stockholders who attended had to be moved to a nearby Warner theatre (operated but two days a week for lack of patronage) where they laughed loudly every time President Harry Warner tried to speak.

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