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There were a few honorable men in show business -- Uncle Carl Laemmle comes to mind, and people used to say nice things about Gus Sun and Barney Balaban, but yes, in general the executives at the top of the industry have usually been swine. Which makes it all the more necessary to read the fine print when dealing with their minions.
I don't know about back then but today many of the movers and shakers in Hollywood are lawyers by profession who had specialized in entertainment law and had started out as agents. That right there tells me a lot about the nature of the beast.