“12 Producers Agree to Hold Salary Cuts Until August 1”

Headline: “12 Producers Agree to Hold Salary Cuts Until August 1”

Subhead: Academy Request Granted by Firms—Paramount to Act Individually

Hollywood — Twelve producers have accepted offer of the Academy of M. P. Arts and Science to act as mediator in the dispute over salary reductions, which have proved the most sensational development ever experienced at the studios.

Highlight of the offer is the academy’s recommendation that producers defer action on the salary slashing until Aug. 1. This, it is pointed out, would give the various branches engaged in production opportunity to discuss thoroughly plan to reduce negative costs. It is proposed that this reduction be effected through co-operation of all factors, thus avoiding a general decrease in salaries.

Acceptance of the academy’s offer was contained in a communication signed jointly by representatives of Joseph M. Schenck, Cecil B. De Mille, Fox, Christie, M-G-M, Mack Sennett, Samuel Goldwyn, Jack White, F. B. O., Universal, First National and Warners.

Paramount did not sign the letter, but is understood to be replying to the academy suggestion in separate communications. This is being done, it is said, because Paramount acted alone in announcing the reduction, with the other companies following suit in the economy program. Meetings have been held by the actors and directors branch of the academy, the technicians branch and the writers branch. Each outlined plans for aiding in the economy program in manner which would make salary reductions unnecessary, pledging their co-operation to reduce negative costs.