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ment Mr. Saccone was under investigation, the station questioned him and on the basis of this, “his appointment was terminated” (last March).
Harry Novik, WLIB’s president, said he had cooperated with the district attorney’s officer who called upon him a few months ago and that “we will study the facts and then make a decision.”
J. Elroy McCaw, president of WINS, said Mr. Leeds left the station in January during the investigation and before any facts had become known. He said the station had requested but did not receive an affidavit. In reference to Mr. Freed, Mr. McCaw said he left in
1958 but apparently before the period covered in the indictment.
Edith Dick, general manager, WWRL. noted the station’s policy that makes employes subject to dismissal when found to be accepting “gratituities.” She said Tommy Smalls on Nov. 23, 1959, signed an affidavit and that in view of the information now disclosed by the district attorney, his employment has been terminated. He joined the station Aug. 1, 1951.
Payment Methods Sampled ■ The District Attorney’s office explained that company payments took various forms. Mr. Freed, for example, allegedly received $400-$700 per month to favor records from companies, while in other cases, individuals received $50-$ 100 on the average although some payments went as high as $750 per month.
The investigators found flat payments, $25 per record for example, in certain instances for plugging a single record. Mr. Tripp, it was noted, allegedly received a Vi cent royalty per record. Two examples: Mr. Tripp is alleged to have received $4,850 for two records (“Sixteen Candles” and “I Wonder Why”) and $13,000 for another record on this royalty basis.
Indictments covered only 1958 and
1959 because of a two-year statute of limitations governing charges of commercial bribery.
Frank S. Hogan, the district attorney, said the American Guild of Authors and Composers made information available to his office as well as to the House Legislative Oversight Subcommittee.
He explained that the station personnel, who were not disc jockeys, were involved as they had authority to select recordings to be played.
Pleadings ■ The eight men were arraigned at Special Sessions Court in Manhattan. Mr. Freed and Mr. Leeds flew to New York to surrender to authorities. Mr. Freed and Mr. Leeds pleaded not guilty. Trial was set for Sept. 19. The other cases were adjourned to June 14. All eight men were paroled in the custody of their attorneys with no bail.
The record companies were not acted against, as the usual practice is to proceed against only one party to an alleged bribery. The companies therefore had immunity so that officials could testify. None of the defendants chose to appear before the grand jury.
Total payments charged to each rec
ord company:
Abel Productions $5,000
Action Records 2,350
Alpha Distributing 21,650
Atlantic Record Sales 6,050
Big Top Records 150
Brent Music 1,000
Carlton Records Distributing 2,175
Coed Records , 5,675
Co-op Distributing 3,950
Cosnat Distributing 12,950
Ember Distributing 750
End Music 1,400
Fury Records 1,455
Gone Recording 725
Hugo & Luigi Productions 1,750
Laurie Records 8,100
London Records 3,600
Malverne Distributing 1,550
Portem Distributing 325
Roulette Records 12,325
Superior Records Sales ...18,200
United Artists Records 3,350
United Telefilm Records 2,100
WHO’S NEXT? President accepts Mills’ withdrawal
Sec. 4 (b) of the Communications Act has ended Edward K. Mills Jr.’s hopes of becoming a member of the FCC. Last Monday (May 16), the President officially withdrew from the Senate his nomination of Mr. Mills to serve as a commissioner until June 30, 1961.
The recall came at Mr. Mills’ own request (At Deadline, May 16) after he had revealed a conflict-of-interest resulting from a trust fund of which he is a lifetime tenant. First public word of the conflict came when Mr. Mills appeared before the Senate Commerce Committee for his confirmation hearing (Broadcasting, May 2).
Mr. Mills’ father established a trust for his two sons which is administered by a New Jersey bank. The trust owns stock in General Electric and Westinghouse which the trustees refused to sell, when requested to do so by Mr. Mills, because approximately $27,000 in capital gains taxes would have to be paid.
Sec. 4 (b) reads: “No member of the commission or person in its employ shall be financially interested in the manufacture or sale of radio apparatus or of apparatus for wire or radio communication; in communication by wire or radio or in radio transmission of energy. . . .
The attorney general was asked for a ruling on the conflict and, informally, he told the Senate Commerce Committee that Mr. Mills would be disqualified from serving as a commissioner as long
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£1