mandment because this film preached peace and good will. The fact that both Senators Nye and Bennett Clark have taken pains to put this charge into the record, without the slightest attempt to secure the facts, easily available to them, which utterly refutes their charge, indicates the unfairness of the methods being used in this hearing. In reply to this charge let me give you the uncontrovertible facts:

We purchased this picture because we felt it had a message—the message of peace and good will-in which the American people would be interested. We paid the Reverend Fredrick and his clerical associates $150,000, which included a profit to them. We planned to remake the picture as a great feature and at great cost. About this time we had released another picture based on a religious theme, Brigham Young. Our experience with that production convinced us that the public was not in the mood to patronize a religious picture. This despite the fact that Brigham Young had the endorsement and official sponsorship of the Mormon Church. We made some changes in The Great Commandment and then engaged in a vigorous and expensive campaign to sell it to exhibitors.

The Great Commandment has played to date in 1,087 theaters in the United States. Last week it played in 49 theaters in 49 different communities, and it is now being booked regularly in an average of 30 theaters per week. We staged an elaborate world premiere at the Uptown Theater in Kansas City, and we secured the sponsorship of almost all of the religious organizations in that city. The boxoffice result of this showing was the most pitiful in the history of the Uptown Theater. On Friday, Saturday, and Sunday we played to a total admission of $1,010. An ordinary film will usually play to this amount in one day alone without any special exploitation.

To cover the Kansas City premiere we sent a special exploitation man, who worked there in advance of the opening, and we spent, in addition to the usual theater advertising, $30 for additional companypaid advertisements. The theater lost money, and we ended up by receiving only $350 as our entire share for the engagement at the Uptown Theater.

If you will look at the review of the opening in the Kansas City Times, you will see that we treated the picture with utmost care and exploitation, the same as we gave to any of our pictures.

We have an investment of $200,000 in The Great Commandment. Despite unusual efforts, we have received back from the American showing less than $33,000. Any statement that we have suppressed this film or the theme it presents is unqualifiedly false.

I would like also to call attention to Senator Bennett Clark's testimoney before this committee. He said that our industry was determined to wreak vengeance on Adolf Hitler by plunging this Nation into war in behalf of another ferocious beast, referring to Stalin.

Undoubtedly Senator Clark has overlooked the fact that Stalin and Hitler were pals, joined in a nonaggression pact, at the very time all of the pictures belaboring the totalitarian ideology were being made. The Twentieth Century-Fox Film Corporation is exceedingly proud of its record of picture making and cooperation with its Government. I am here to represent it in all of its production phases. I also offer myself as a personal exhibit of one who was able to make among the

best of motion pictures as an independent producer. I shall be happy to answer your questions. [Applause.]

Senator CLARK of Idaho. Mr. Zanuck, in my own behalf and in behalf of the committee, I want to thank you for your very excellent

statement.

It is now 10 minutes of 12. Before we recess I want to give a sort of outline of our future plans. I anticipate that the questions that will be asked you, Mr. Zanuck-I cannot tell for certain-will probably take not more than an hour. Then, if Mr. Balaban is here, we could probably examine him or hear his statement, if he has one, and probably finish, without doubt, this afternoon.

Mr. WILLKIE. He will be available.

Senator CLARK of Idaho. Thank you, Mr. Willkie.

The committee has had under discussion, both here and in executive sessions, the seeing of some of these moving pictures. Last week or earlier this week we all agreed in executive session to arrange to see some of the pictures during the coming week. Senator Tobey is going to be away, but he has advised us that he has seen most of the pictures. However, Senator McFarland was discussing with me yesterday the possibility of taking next week off entirely.

The people who are here from New York and from other places have got to catch up on their work, and I know that a great many members of the committee must have neglected some of their work; I know that I have. I discussed that question with the other members of the committee, and apparently it is agreeable to take the week off.

Am I stating the situation correctly?

Senator MCFARLAND. That is agreeable to me, Mr. Chairman. I feel that the pictures should be shown when Senator Tobey is here, anyway, so that he might see such pictures again if he wanted to or such pictures as he has not seen.

To be honest with you I am behind in my work; then furthermore, I want to go to South Bend tomorrow afternoon to see Arizona and Notre Dame play football.

Senator CLARK of Idaho. I want to say in all frankness that I want to see some of these pictures. There have been about 18 listed here, but it is perfectly obvious that the committee cannot see 18 feature pictures. However, by the time we convene again we will have heard from Mr. Schenck, Mr. Warner, and Mr. Zanuck, and will know the way the testimony has developed, so that we will have a pretty good idea about picking out a number-maybe 6 or 7, to use a figure of those pictures. Arranging to have them shown is a mechanical problem, and I am more than anxious to help work it out, as I am sure the committee also is. Senator McFarland has been very gracious in that respect. So, when we adjourn this evening, we will adjourn until 10:30 o'clock a week from Monday.

Mr. ZANUCK. May I make a suggestion?

Senator CLARK of Idaho. Yes.

Mr. ZANUCK. I realize that time and certain technical requirements may possibly prevent it, but I think it would be a great thing if in addition to the seven or eight pictures that you would like to see, you would also see seven or eight other pictures, so that you would have a balanced viewpoint upon what moving-picture producers have done for the past 20 years.

63855-41-pt. 1-27

Senator CLARK of Idaho. I quite agree with your suggestion; it had not occurred to me before. I will tell you what we might do. We might leave it up to the industry to select a few pictures that they think, in their judgment, will balance the seeing of the other six or seven. I say six or seven; perhaps it will be only three, four, or five; or it may be eight, depending on how we agree.

I think that your suggestion is an eminently fair one, Mr. Zanuck. I think it will give the committee a better viewpoint as to the attitude of the industry as a whole.

Mr. WILLKIE. May I ask that you just give us about 3 days' notice?

Senator CLARK of Idaho. Oh, yes; certainly; it will all be worked out with the industry.

Mr. WILLKIE. It is purely mechanical.

Senator CLARK of Idaho. With that, unless there is something else from the committee, we will recess until 2 o'clock this afternoon and will finish this afternoon.

Mr. ZANUCK. Thank you.

(At 11:55 a. m. a recess was taken until 2 p. m. of the same day.)

AFTERNOON SESSION

The subcommittee resumed at 2 p. m. upon the expiration of the

recess.

Senator CLARK of Idaho. The subcommittee will please come to order. Senator Tobey I am sure will be here very shortly. Mr. Zanuck, if you will resume your position at the witness stand.

TESTIMONY OF DARRYL F. ZANUCK, VICE PRESIDENT IN CHARGE OF PRODUCTION, TWENTIETH CENTURY-FOX FILM CORPORATION-Resumed

Senator CLARK of Idaho. Mr. Zanuck, I want to get, first, just a little outline of your company. Can you tell me something about it? How are the stock interests held in Twentieth Century-Fox Film Corporation?

Mr. ZANUCK. The stock interests are held, to the best of my knowledge, by the public owning the stock, and Chase National Bank of the City of New York is a large stockholder, and there are a number of individuals who are large stockholders. The stock can be purchased on the board.

Senator CLARK of Idaho. You mean it is listed on the New York Stock Exchange?

Mr. ZANUCK. Yes, sir.

Senator CLARK of Idaho. Would you say the Chase National Bank owns sufficient stock to have control?

Mr. ZANUCK. As to voting control, I am not sure. I would say that I think they with their various affiliates probably have voting control. control.

Senator CLARK of Idaho. There is no particular point in it. I am simply looking for information.

Mr. ZANUCK. I understand.

Senator CLARK of Idaho. You have some stock in Twentieth Century-Fox Film Corporation, have you?

Mr. ZANUCK. I do.

Senator CLARK of Idaho. Your company was formed by a merger of the old Fox Co. and the Twentieth Century Co., was it not? Mr. ZANUCK. It was known as the plan of reorganization. Senator CLARK of Idaho. As I understand it you were interested in Twentieth Century Co.

Mr. ZANUCK. Yes.

Senator CLARK of Idaho. And then when the reorganization of the Fox Co. occurred, I mean when the two were merged into one, you went with the merged company?

Mr. ZANUCK. Yes.

Senator CLARK of Idaho. And who is the president of your company?

Mr. ZANUCK. Sidney Kent.

Senator CLARK of Idaho. Are your duties as vice president of the company largely in the production end?

Mr. ZANUCK. Entirely in the production end.

Senator CLARK of Idaho. So there won't be much point in my asking you about the set-up. You can tell me, though, about how many theaters your company owns, can you not?

Mr. ZANUCK. We do not own any theaters.

Senator CLARK of Idaho. The company does not?
Mr. ZANUCK. No.

Senator CLARK of Idaho. What is the arrangement then between Fox theaters and the Twentieth Century-Fox Film Corporation?

Mr. ZANUCK. Well, the Fox theaters were divorced long before the reorganization or so-called merger, from the Fox Corporation, the old William Fox Corporation. As I understand the set-up, at the present time we have 42 percent in National Theaters Corporation. The National Theaters Corporation in turn have a number of subsidiary companies, known as Fox West Coast, Fox Rocky Mountain, and Fox this-and-that. We have 42 percent.

Senator CLARK of Idaho. So that your interest in the theaters, that is, the interest of Twentieth Century-Fox, comes through a stock ownership of about 42 percent, or whatever you said it was, in another company, which in turn owns the theaters.

Mr. ZANUCK. That is right.

Senator CLARK of Idaho. Approximately how many theaters does this subsidiary company own or have a partnership interest in, if you know?

Mr. ZANUCK. I do not know.

Senator CLARK of Idaho. It is not vitally important but I would simply like to get the set-up.

If you do not know this just say so, but I am reading from Monograph No. 43 of the Temporary National Economic Committee, wherein I find a tabulation entitled "Number of theaters operated by each of the major companies, 1940," and your group, if I may use that term, is listed as owning 538. Would that square somewhat with your knowledge of the situation?

Mr. ZANUCK. I would say that the National Theaters Corporation owns or partially owns about 500 or 600 theaters, but I think that I should make it very clear we have nothing to do with the operation or ownership of these theaters. We merely own stock. They are not controlled by Mr. Kent or anybody in our company.

Senator CLARK of Idaho. I understand that. But through your stock ownership, which would amount to virtual control, you indirectly own the theaters, do you not?

Mr. ZANUCK. No. We only have 42 percent of the stock.

Senator CLARK of Idaho. Is the stock on the market, and are there quite a number of shareholders?

Mr. ZANUCK. I am not sure of that.

Senator CLARK of Idaho. Of course, you are not a financial man and I am not trying to trip you on anything like that, and could not if I wanted to, but usually ownership of 42 percent of the stock of any corporation, where the stock is diversified, amounts to virtual control. I am not inferring that that is true in your case either. I am just trying to find out the situation.

Now, as to your statement, I do not think anybody can quarrel seriously with it. You have presented the situation as you view it. One might differ with you as the method of procedure as to foreign policy and that sort of thing, but certainly there is no fundamental quarrel with your principles of Americanism and your own views as outlined in that statement.

Now, as regards the pictures you produce, particularly so-called Nazi films, do you think that those films represent the facts as they exist?

Mr. ZANUCK. I believe that they very fairly represent the facts. I believe that, but would like to say that I made pictures out of published stories.

Senator CLARK of Idaho. What do you do in that regard? Do you take a story and then do you always follow the story more or less accurately?

Mr. ZANUCK. Well, we do that as accurately as we possibly can. Sometimes it is necessary to make changes in order to so place a book that it can become a successful motion picture. Sometimes it is very necessary for us to eliminate characters, or to add characters. But the reason why we buy a story is that we believe it will make very good entertainment on the screen after it has been adapted to the screen.

Senator CLARK of Idaho. But, apart from adapting a story to your necessary mechanical screen problems, you do not distort or change the story completely; is that what you mean?

Mr. ZANUCK. We do not change the story completely.

Senator CLARK of Idaho. Did you produce a picture called Four Sons, with Don Ameche as the leading character?

Mr. ZANUCK. I did.

Senator CLARK of Idaho. Are you familiar with Harrison's Reports?

Mr. ZANUCK. I have not been for a number of years. In silent picture days I do recall reading Harrison's Reports. I am not a subscriber and have not read his reports in years.