This Day in Film History (Louis B. Mayer Loses MGM Showdown)

June 22, 1951—Loews Inc. announced the results of a long-rumored feud in its Hollywood subsidiary, Metro-Goldwyn-Mayer (MGM): production chief Dore Schary would replace Louis B. Mayer (pictured) as head of the largest of Hollywood’s seven major studios.

The press release mentioned that Mayer was becoming an independent producer, but it was inconceivable to longtime employees—including many who came out the following day to bid him goodbye—that the mogul would voluntarily end his 27-year reign, including a stretch when he was the highest-paid man in America.

Those suspicions proved correct: Mayer had traveled from his Hollywood offices to the studio’s New York-based financial directorate to present an ultimatum to Loews President Nicholas Schenck: It’s either Schary or me. Instead, Schenck called his bluff and forced his resignation.

Forget about Schary: Mayer had also talked down his boss so much that it would have been a miracle for word of the backbiting not to reach Schenk eventually.

They spoke constantly—"two or three times a day in an age when coast-to-coast telephone calls were not so easily made as they are today,” according to David McClintick’s account of a later Tinseltown-New York power struggle, Indecent Exposure—but were seldom on each other’s wavelengths.  Mayer referred to him variously as “The General," "Nick Skunk," “the smiler and the killer," and “the big cheese.”

Ironically, Mayer had brought back to MGM the number-two he came to loathe. A former screenwriter, Schary was chafing as production chief at RKO after its acquisition by the increasingly eccentric Howard Hughes when he was invited back to the lot he had once known as his professional home.

Schary’s key demand for his return—that he bring along his pet project, Battleground—sparked conflict between himself and his new boss.

One of the most grittily realistic WWII dramas released in the early postwar period, it was anathema to Mayer, a mogul not just of old-fashioned tastes but even Victorian ones. If his movie factory could have churned out only musicals and Mickey Rooney’s Andy Hardy series, he probably wouldn’t have minded very much. 

In contrast to Mayer’s conservative Republican sympathies, Schary—two decades younger—was an industrial-strength New Deal Democrat who wanted more socially conscious fare like Battleground that sent a message.

Battleground’s triumph with critics and, more important, the public (it was one of the top box-office hits of 1949) boosted Schary’s cachet with Schenck while undermining Mayer’s.

With television emerging as a rival medium, lost court cases weakening studio control over stars and movie houses, and international Communism threatening audience optimism across the country, Mayer no longer seemed in touch with public tastes. The question was, would Schary?

Mayer might have been wrong about the commercial prospects for Battleground, but turned out to be right about another war film on the bubble in his final days at MGM: John Huston’s adaptation of Stephen Crane’s The Red Badge of Courage. Even with an authentic war hero, Audie Murphy, as the lead, audiences stayed away, proving Mayer’s contention that they would find it too depressing.

In the long run, Schenck might have been correct that Mayer was too old and set in his ways to continue running MGM, but it did not mean that Schary was the right leader to steer the studio through its choppy new waters. 

A highly capable scriptwriter and playwright (as he would show in a few years with his biopic about polio-stricken Franklin Roosevelt, Sunrise at Campobello), he proved less adept at managing talent or sensing what audiences wanted. Any positive impression generated by his geniality faded once his corporate mismanagement became apparent.

In contrast, even before he participated in the 1924 merger that established MGM, Mayer had been involved with the movie industry in multiple capacities, so he knew the business thoroughly.

While Schary soon frustrated the studio’s musical hands with his complete lack of interest in the genre, Mayer valued their contributions.

And, while Schary would in a few short years drive away stars like Clark Gable from their longtime home, Mayer, for all his paternalism, sincerely wanted to prove there was no hype in MGM’s longtime slogan, “More stars than there are in the heavens.”

There was no ultimate victor in the MGM showdown. In late 1955, Schenck would be kicked upstairs when Arthur Loew Sr. became president of his family company. Among Lowe Sr.’s most notable moves in his single year at MGM was firing Schary, who spent his remaining quarter-century of life doing what he probably was most cut out for to begin with: writing.

As for Mayer, he was able neither to make a go at independent producing nor in regaining control of MGM when the studio’s declining finances wore down investors’ patience. 

When he died in 1957, though some deplored his penny-pinching tendencies, others would have agreed with one of his stars, Katharine Hepburn, when she wrote in her autobiography, “L.B. Mayer was a shrewd man with enormous understanding of an artist. He was not stupid, not crude. He was a very sensible fellow, and extremely honest.”