“Hopes to Avoid Wage Cut Rise at Studios”

Headline: “Hopes to Avoid Wage Cut Rise at Studios”

Subhead: Paramount Defers Slash as Cabinet Is Named to Effect Economy

Hollywood — Hopes for successful launching of producers’ economy program without recourse to general slashing of salaries, are stronger to- day as the result of Paramount’s action in establishing an emergency cabinet to study the situation.

This action follows agreement of 12 other producers to defer salary cuts until Aug. 1 to give various branches of the industry opportunity to present their views which will make possible the effecting of economy without a general reduction in salaries. In making this agreement, the producers were acting upon a request from the Academy of M. P. Arts and Sciences, which also asked that no reductions be made without individual investigation of each case Paramount acted individually in granting the request.

Paramount’s council, composed of heads of the various studio departments was formed after a meeting of a committee of 30 representing players, directors, technicians and writers.

Names of the cabinet members were not disclosed but all have pledged themselves to institute policies and methods which will eliminate excessive costs, and probably make possible abandonment of the proposed wage reductions of from ten to 25 per cent.