‘Moguls’: How the Schenck Brothers Helped Invent Hollywood While Building an Empire of Their Own

Hiram Abrams, Dennis F. O'Brien, Mary Pickford, Charlotte Hennessey Smith
(Mary Pickford's mother), Charlie Chaplin, Arthur Kelly, Douglas Fairbanks, Joseph Schenck.

Book Review:

By Paul Parcellin

The Schenck brothers, Joseph and Nicholas, stood among the most powerful executives of the 20th Century’s movie industry and played a key role in shaping the Hollywood that we know today. Yet their names are hardly household words.

With their engrossing new book “Moguls,” authors Michael Benson and Craig Singer shine a light on the Schenck brothers’ rise in show business, from scrappy, small time entrepreneurs to captains of the movie industry during the glory days of Hollywood. The book contains a wealth of knowledge not only about the Schencks rise in the industry but the history of Hollywood itself.

The Schencks’s story begins in a land far removed from the sun drenched Southern California coast. Ossip Schencker, who became Joseph Schenck at Ellis Island, was four years older than his brother Nikolay (Nick). Both were born in Rybinsk, Russia, and came to America before the turn of the last century, eventually landing in the Lower East Side of Manhattan. 

Tough times forced Nick to leave public school and hit the pavement. Joe had arrived in America before him and had already begun scratching out a living. The two hawked newspapers on their jealously guarded prime street corner, chasing away rivals who tried to muscle in — good preparation for careers in Hollywood.

Joseph M Schenck,
Oct. 1917

Ever the entrepreneurs, they eventually landed in the pharmacy business, vending potions and remedies of dubious value, then operated a beer concession. They invested their money wisely, eventually owning the amusement center at Palisades Park, N.J. As they did with each of their business endeavors, the Schencks expanded and improved what was at first a fairly modest enterprise, turning it into a bonanza for them and a major attraction for adults and children, alike.  

They saw great potential in the “flickers” as they called early short films screened in New York storefront arcades. First, they became exhibitors and eventually got into the business of making moving pictures. Their keen instincts brought them to the forefront of the nascent business, yet they preferred to stay in the background, running their operation from afar while letting others bask in the spotlight.  

Nicholas Schenck

Joe, the producer, was a gifted at spotting and contracting stars; Nick oversaw real-estate acquisition and was tremendously successful at it, eventually partnering with movie theater magnate Marcus Loew. Nick helped create the expansive Lowes theater chain, building many extravagant movie and vaudeville palaces. 

The brothers’s rise was nothing short of meteoric. In their heyday, the Schencks controlled about a third of the motion picture business, the fourth largest industry in America. That included controlling interests in three major studios: Metro-Goldwyn-Mayer, Twentieth Century-Fox and United Artists. 

While they preferred to remain out of public view, they closely monitored their businesses and kept them under tight control. MGM studio head Louis B. Mayer may have had the reputation for being a dictatorial leader, but he made no decisions without first “checking with New York,” and that meant Nick Schenck.

Joseph Frank 'Buster' Keaton

Their pals included William Randolph Hearst, Lillian Gish, Jacob Paley, John Huston, Fatty 
Arbuckle (more on him later), Douglas Fairbanks, Irving Thalberg and Irving Berlin. Joe was silent-film legend Buster Keaton’s first producer and best friend. He produced such Keaton classics as “Sherlock Jr.” (1924), “The Navigator” (1924), “Go West” (1925), “The General” (1927) and “Steamboat Bill, Jr.” (1928), among many others. But, ironically, it was Joe who inadvertently put an end to Keaton’s career as a filmmaker when he moved him from independent productions to MGM. From then on, Keaton felt stifled as he appeared in commercial films that lacked the spark and creativity of his earlier work.

While Keaton's career took a less than desirable turn, the Schencks motored on, becoming all the wealthier. Nick, who was the more prudent of the brothers, became the eighth richest man in the country — Joe wasn’t far behind, despite his penchant for high-stakes gambling. Nick was head of more than 100 corporations and was reputedly the highest-paid theatrical manager in the world. 

But with Hollywood’s carefree lifestyle and tendency toward excess, scandal always seemed to be percolating just under the surface.

Roscoe 'Fatty' Arbuckle.

Joe produced films starring Roscoe “Fatty” Arbuckle, one of the country’s most popular comedy entertainers, second only to Charlie Chaplin. But in 1921 a public relations fiasco not only threatened Paramount, the studio where Arbuckle made his pictures, but the industry as a whole. He was charged with the rape and manslaughter of actress Virginia Rappe. 

He was tried three times between Nov. 1921 and April 1922. The first two trials resulted in hung juries, but the third trial acquitted Arbuckle. But public opinion was against the corpulent actor and his career never fully recovered. The movie business also took a hit, with the public and politicians decrying Hollywood’s moral decay, a theme that still resonates today.


Another item that became fodder for tabloid scandal sheets was the mysterious death in 1935 of actress Thelma Todd, known as “Hot Toddy,” mistress to both Joe’s close friend, director Roland West, and gangster Lucky Luciano. Many suspected it was murder, not suicide as a Grand Jury ruled. 

There was good reason to be skeptical due to her association with mobster Luciano. 

Eddie Mannix
the fixer

The authors maintain that studio fixers — probably including legendary Schenck enforcer Eddie Mannix  — swarmed the scene and scrubbed it of evidence before police investigators arrived. Mannix, a bulldog Irishman, worked for Nick as a youthful and enthusiastic bouncer during Nick’s Palisades Park days. 
It was his job to smooth over anything that might put the studio in a bad light. He had doctors, reporters, cops, DAs and judges under his thumb. Gay performers were provided beards. In the case of untimely deaths, the fixer got to the scene before the police. 

Stars were kept out of jail, and names out of the paper. According to the authors, suppressed scandals also include the suspicious death of Jean Harlow’s husband, Paul Bern; the murder of Ted Healy (creator of the Three Stooges) by actor Wallace Beery and others; Judy Garland’s drug addiction; and Loretta Young’s illegitimate baby fathered by a married Clark Gable. 

Scandal once again reared its head in 1959 with the mysterious suicide of George Reeves, TV’s Superman, at age 45. He died in his Benedict Canyon home from a theoretically self-administered gunshot wound. As circumstances had it, this was another scandal linked to the brothers. 

George Reeves
suspicious suicide

Many believed that Reeves had grown depressed by his typecasting in the Superman role. But over the years, what really happened to Reeves has remained a mystery. Schenck fixer Mannix was — at the very least — tangentially involved. Reeves had recently ended a long affair with Mannix’s second wife, Toni. 

The brothers’ tenure in the industry coincided with earth-shaking world and national events, and as Hollywood grew in worldwide stature the movie business played an ever larger part in the politics and issues of the day. 

The Schenks are credited with helping to ward off a Nazi takeover of the movie industry. Hitler had his eye on Hollywood, recognizing it as world’s biggest influencer of public opinion. Joe, Nick and other studio executives, urged on by attorney Leon Lawrence Lewis, organized a covert campaign to undermine American Nazi sympathizers’ efforts to use the studios to disseminate Hitler’s propaganda. The American Nazi threat fizzled as did the Fuhrer’s plans for worldwide domination.

Frank Nitti

A mob shakedown of the projectionists union in the 1930s, masterminded by Chicago gangster Frank Nitti, was a prelude to organized crime’s control of the movie industry’s trade unions. The Schenks and others decided it was better to play along than fight it. In fact, studio management benefitted by mob control. If the unions were troublesome, mob muscle could exert pressure. Studios saved money on raises that would otherwise have been paid to workers, while mob-controlled unions extorted the wage earners. 

A federal Grand Jury indictment helped put a lid on the corrupt practices. Nick testified under immunity, however those eventually found guilty of racketeering were soon pardoned by the Truman administration. The authors contend that Truman’s attorney general, Tom Clark, was in the hip pocket of organized crime.

Marilyn Monroe,
Joe's 'special friends.'

Far away from the scandals and Hollywood hype, Nick lived the quiet life of a family man in Great Neck, Long Island. United in their business partnership, the two brothers could hardly have been more dissimilar in personality. Joe was the man about town in Los Angles and was involved directly or indirectly in more than his share of trouble. He lived in a nine-bedroom, ten-bathroom Italian Renaissance-style mansion known as Owl-wood in the enclave of Holmby Hills overlooking Sunset Boulevard. It was there that, after a failed marriage to actress Norma Talmadge, he lived the life of a swinging bachelor and master of the casting couch. As he did with many starlets, Joe became Marilyn Monroe’s mentor and “special friend.”

Not only did Joe play fast and loose on the dating scene, some creative book keeping landed him four months and five days in the federal penitentiary for tax evasion. But, he was quickly released after allowing the USO to use one of his houses in Palm Springs. 

Over the decades, the brothers remained entrenched in the industry despite scandals, shifts in studio management, evolving audience tastes, friction with labor unions and perhaps most upsetting of all, the advent of television. Throughout it all they persevered and made their mark on the entertainment industry as few before or after them have done. 

Joe died in 1961 at his Beverly Hills home, where he lived alone except for household and medical staff.  At his funeral service the rabbi called Joe “part of a dying generation, a part of an epic of Hollywood that is fading fast.”

Despite his career misfortunes, Keaton eulogized Joe, saying, “I have never met a finer man in show business.” 

 Nick passed away in 1969 at 87, delusional that he lost his money although he was still a very rich man. He often refused to go anywhere or do things because he thought he couldn’t afford it. In his eulogy for Nick, famed attorney Louis Nizer said, “Nicholas Schenck was a great man. The architect of and the civil genius behind this country’s motion picture industry. He was a quiet, humble, but noble man. He truly was The General.”