Indecent Exposure (53 page)
- Filmdom Agonizes Over High-level Juggling of Company Funds
(The Washington Post) - Questionable Encounters: Stranger-Than-Fiction Happening at Columbia Pictures
(Time) - Begelman’
s Encounters
(Newsweek) - Begelman Case and Issues of Film Ethics
(The New York Times) - The story had become a fixture on the wire services. The AP and the UPI kept their thousands of clients supplied with updated dispatches every twelve hours. Television and radio newscasts carried stories as well.
- As it gained strong national momentum, the press's handling of the Columbia scandal began to display traits typical of heavy, rapidly mobilized coverage of major news events. Many stories contained small errors. There were reports that Burbank Detective Elias had gone to New York and personally informed Alan Hirschfield and the Columbia board of directors about the Cliff Robertson forgery as early as June or July. In fact. Elias had gone only to The Burbank Studios and informed senior vice president John Vcitch. who told David Begelman, who convinced Elias that the case was being handled internally. There were reports that the "third forgery" had involved the name of Patrick Terrail. owner of Ma Maison. The correct name was that of Pierre Groleau. Terrail's aide. There was a report that Columbia had discovered the Ritt check early in its investigation. In fact, the Ritt check wasn't found until the inquiry was nearly complete.
- On a more important level, unable to establish significant new facts not contained in the original
Wall Street Journal
and
Washington Post
stories, the press hurriedly searched for fresh themes—generalizations which could justify repeating the now-familiar facts. The generalization that was dominating most stories by the middle of January was represented by the words "tip of the iceberg." i.e.. David
Begelman
's crimes were indicative of a broad pattern of corruption pervading Hollywood. - The "tip of the iceberg" theme had begun to emerge in the
- Washington Post
article on Christmas when Cliff Robertson said: "There is a spreading cancer of corruption in Hollywood, of which the
Begelman
incident is but one example." Robertson repeated the theme, in progressively more elaborate form, to other reporters. None of them pressed Robertson for additional examples of corruption, however, and no specific instances were identified and reported. B
ut by mid-January the tip-of-the
-iceberg theme had become an accepted premise of many articles. - According to knowledgea
ble people in the film industry,
The New York Times
said on Monday, January 16], bribes, payoffs, and other financial improprieties almost certainly run into millions of dollars annually. The dealings are said to take a variety of forms, and include the following: - Bribes paid by independent motion-picture and television producers to studio executives who are in a position to approve a project. . . . Bribes paid by independent television producers—after a network pilot is made—to members of network programming departments whose influence is important in winning approval of a proposed television series. . . . Loans made to studio executives
...
by independent producers or agents who, because of the debt, can virtually call the shots in negotiating deals with the studio. . . . The practice of studio executives about to be dismissed by a film company of negotiating a high-cost deal with themselves before departing. The deal contains extra money that, in effect, is stolen from the company. . . . Bribes to film company executives from theater owners who want favorable treatment or play time on a new film. . . . Besides these practices, industry sources say, there are other forms of corruption [ranging from] payoffs by production companies to union officials for favorable arrangements on a movie project to expenditures of large amounts of company funds to underwrite personal living expenses. - The
Times
article appeared in many papers across the country. Amid the daily barrage of national press coverage, there appeared a prominent journalist to defend David
Begelman
and essentially ignore the larger issues. In the
Los Angeles Times
of Monday, January 16, Charles Champlin, the paper's arts editor and principal film reviewer, wrote: - Hollywood in its time has lived out as well as acted out on the screen murders, rapes, abductions, extortions, assaults, defalcations, treacheries, coups, tragedy, comedy, and a good deal of farce. The curious case of David
Begelman
has followed no previously familiar scenario cither public (fictional) or private (real). At this point in the drama, there are some resemblances to much earlier works which might carry titles like
The Fallen Saved
or
The Prodigal Son Returned.
But it is a long while since Hollywood has lived or filmed those stories. And, in its obscurities, its psychological overtones and its avoidance of traditional plot formulations, the
Begelman
situation is more the stuff of a European fi
lm. It is closer to Georges Sime
non than to Ed McBain's 87th Precinct, although the older, wearier Lew Archer might understand. - The victimless crime has become a term in common use. On the present evidence, and in the absence of any complainants or criminal prosecutions, what we seem to have here is a crimeless crime which is not, however, without a victim. What we have here, it might be said poetically, is a culprit who doubles as a victim. It is a paradoxical and confusing situation which Hollywood and the media, including this newspaper, have been uncertain how to handle. . . .
- After a laudatory recitation of
Begelman
's career, Champlin then quoted an anonymous source as saying: "This ain't no Equity Funding, or anything like it. He had a problem. It's too bad it wasn't a drinking problem—society understands that better. I'm not sure I understand why a man docs self-destructive things to cope with pressure, but there it is." - Champlin closed by writing, ". . . while humiliation is not punishment that is likely to earn much sympathy from someone behind bars, it is a real enough punishment for a man who legitimately earns upwards from $300,000 a year."
- FORTY-ONE
- The Columbia Pictures executive suites at 711 Fifth Avenue and The Burbank Studios were like bunkers under accelerating fire. Along with new bursts of press coverage, each day brought a new spate of press telephone calls. Reporters sought Alan
Hirschfield
at his office, at home in Scarsdale, and at the Beverly Hills Hotel. They called Herbert Allen at Allen & Company and the Carlyle, Matty Rosenhaus at his Pierre apartment and in Florida, and David
Begelman
at the studio and his house on Linden Drive. Few of the calls were accepted or returned, but they were distracting and somewhat unnerving. Although each of the executives had been well known for years in his own sphere, widespread public notoriety and the accompanying intense press pursuit were new experiences which they found very unpleasant. - The atmosphere inside the company remained foul.
Hirschfield
, more than ever, was emotionally committed to inducing an outsider to purchase the company or at least a sizable enough interest in it to dilute Herbert Allen's power. Alan hoped that Herbert still might grow frustrated enough to accept a bid from Jimmy Goldsmith, despite his anger at Hirschfield's having approached Goldsmith secretly. Alan also hoped for some interest from Time Incorporated, or from Mattel, the big toy company in which Columbia had made a major investment in the fall. - Hirschfield
and Adler lunched at La Cote Basque on Monday, January 16, and continued their private talks on how Herbert might be overthrown. Having retreated from his angry threat to resign in December following the restoration of
Begelman
. Adler had some new ideas. He would be in Los Angeles later in the week, and would be talking to friends who had told him of two major corporations that conceivably might be interested in buying Columbia Pictures. - The two companies were Philip Morris, the cigarette and beer maker (Marlboro, Miller High Life), and Penn Central, which had risen from the ashes of its railroad bankruptcy and had built a profitable company around real estate and energy holdings. Adlcr would know more about both possibilities in a week or so, he said, and would get back to Hirschfield.
- That night, David Begelman caught the TWA red-eye out of rainy Los Angeles, landing in New York early Tuesday morning in snow and sleet. After freshening up in his suite at the Drake, he made his way to an eight o'clock appointment with Matty Rosenhaus at the Pierre. Begelman was keeping his
promise to Alan Hirschfield,
made over dinner in Beverly Hills the previous Wednesday, to attempt to act as an intermediary in laying a foundation of reason and peace upon which
Hirschfield
could base further efforts to assuage Rosenhaus's anger and disaffection. - Rosenhaus, however, had nothing good to say about Hirschfield and was ir
rational on the subject: "He's Iago, he's Iago, he's I
ago," Matty muttered, not looking at
Begelman
. - "But Matty," David interjected, "this simply is not good for the company. There is not only a rift, but the rift is now publicly perceived. Until it is closed, the company will continue to suffer. Everybody tells mc I'm no longer the issue between you people, so in a sense it's none of my business. But certainly it was my behavior which was the springboard for all this. Therefore, I feel a double obligation, an extra obligation, to help make things right. So please, let's try to put it to rest."
- Matty brightened. "Of course, of course, you're right, David. I just got carried away, but you're absolutely right. Let's get on with it."
- Half an hour later at Allen & Company, Begelman made the same speech to Herbert Allen. Considerably more pragmatic and less emotional than Rosenhaus, Herbert agreed immediately with David's suggestion that the company must establish and project a strong united front. As their conversation was ending, Herbert said, "You know, David, it's odd.
I
keep hearing, an
d learning, and reading through
all of this that Alan
Hirschfield
was my best friend. He was never my best friend. When we came together to Columbia, we came with the reputation of being best friends. Alan was never my best friend. We were supposed to be like twins, and we were never twins.
I
've let it go,
I
haven't said anything, or challenged it, but we were never the best of friends." - David Begelman had overestimated his peacemaking prowess. Not long after he left Allen's office, Herbert went upstairs and walked in on
Hirschfield
unannounced. - "Look, Alan,
I
know the company's at a standstill and something has to be done," Herbert said.
"I
've got a plan to make everyone happy." - "What's that?"
- "What would you think of you and Lufkin* being co-chief executive officers?"
- "Co-chief executive officers? What the hell does that mean?"
- "You'll divide up your responsibilities. You and Dan have good chemistry together. You'd get along well. He could help you a lot. And it would take care of a lot of Matty's concern."
- "Herbert, that's the most harebrained scheme
I
've ever heard.
I
've never heard of co-chief executive officers. It's a new concept in American business. What would Lufkin do, based on his long experience in the entertainment business, which he doesn't have?"
"He's a smart guy, a fast learner; it would work well. You'd work it out between yourselves." - "It's ridiculous, the most ridiculous idea
I
've ever heard." - "Well, then, what about Dan becoming chairman, and Leo moving over to chairman of the executive committee. Matty would resign as chairman of the executive committee."
"That makes no sense. Lufkin has no experience in this industry, or even with this company. He's only been to one board meeting. He would clearly be perceived as my successor. There would be speculation. It would confuse the employees. It would confuse our business relationships. It would cause more, not less turmoil, particularly at a time when the whole credibility of the company is being questioned. The next step would be that Lufkin would be positioned to take my job. I'm not that stupid." - "No. it wouldn't be that way at all. Dan doesn't want to work full time. But he could help us a lot in doing deals."
- "I
'm unalterably opposed."
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