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A-10 THE EVENING STAR Washington, D. C., today, April 29, 1960 PAYOLA Clark Takes Stand, Denies Wrongdoing Continued From First Pace making a lot of money in a short time. Knew of Payola Answering questions by Mr. Lishman on payola payments by a firm in which he had an interest. Mr. Clark agreed that he knew the Chips Distributing Co., a Philadelphia record firm in which he held a one-third. Interest, had distributed $20.- 000 in payola over a 20-month period. Mr. Clark insisted he knew nothing about details of the payments, which he said were handled by Harry Chipetz, one of the partners in Chips Dis tributing. Pressed by Mr. Lishman. he said Mr. Chipetz told him at one time that payola was being distributed. “You knew it was going on?" Mr. Lishman insisted. “I did.” Mr. Clark replied and added that payola is an ac cepted part of the record busi ness. Mr. Clark also ackowleded that he had done nothing to stop the payments by the Chips company. He said he received the $4,500 in gifts in 1958 from Lou Bedell of Era and Dore records. “A Lot of Royola’’ Representative Dcro uni a n. Republican of New York, com menting on the disc jockey's ‘ business activities said: “All I can say Mr. Clark is, you say you didn’t get any payola but you got an awful lot of royola.” The punning reference was; to copyright royalties and other returns on the Clark invest ments. In discussing the "kickback, payments.” Mr. Clark said that 1 "it has not been an uncom mon practice in the broadcast industry for stations, program packagers and networks to ac-’ cept reimbursement of talent; fees paid to performers from record companies and talent agents.” He said that in the early months of production of Amer ican Bandstand by Click Corp., which he had organized in March, 1957, “Click did fre quently receive such reimburse ment.” He identified the period of payments as from January to October. 1958. During that period, he said. Click's budget was too small to permit payment of union scale rates to more than a small number of performers "The program was in its tentative or experimental stage. I myself re ceived a nominal salary.” He said that Click advised ’ ' ; W ■MF VJMTinu! ncrmcucu.. / \ Only ‘ZOO down LmY / bu v s y° u «3 ■ bedroom FJFPWMANENT FLORIDA HOME! M homo in Florid.', HHF* «’« *ll® finest new community... INVESTMENT! Ilf A J VISIT GROUND FLOOR OFFICE AT 1012 14th ST., N.W. £ V / ond see color slides, plot pions, ond floor plans and find MajL. 11... —I . out about Royal Palm Beach—the city planned for Florida living A $lO deposit reserves your home and lot. w3l E R ~, ... AII A LOCATION YOU CAN BE PROUD OF fl MJr *0" '2 ««W <■« IM ***<• M. Beaches. { >. In the area ore sport fishing, golf, tennis, polo, lawn ».. bowling, swimming, jai alai, horse racing, dog racing, water skiing, boating, ocean bathing, soiling and shuffle m WPbwFr* board Don t settle tor a second-rate Florida location 9 MODERN HOME DESIGNS FROM $8,990 TO $12,950 These striking new two ond three be Iroom homes were M designed especially for this exciting new city by Keller 5~~ i 1(1 Construction Company of Palm Beach F.ve models have w| ' OBMhL * JSS down [3 ments -f ;2'-' and f.;ur I--j. e : -■ ments including closing costs. Prices include lot. the CORAL BEACH POOL, CABANA CLUB, INN, SEWER AND WATER FWhu 2 BEDROOMS • 1 BATH T-, j _u-. ii J ‘- a SCREENED PORCH ' he facilities mentioned above as well os paved streets and . *W * Total price $10,600 a dramatic palm-lmed entrance are not architectural ■ <jir < Total down payment $2OO sketches but are in actual operation. Purchasers are EH K jLj - eligible for free membership and free first year dues in ■ Bmm ■ M bHI wH Hws i'l MMKIHBMNHMERHMHfiI $ * rnmin 9 cabana club. Soles by LEFCOURT Soles, Inc.—-a wholly owned subsidiary of LEFCOURT REALTY CORPORATION ;g^g^^g^g--- iairr . .. . JL# • it, ' ’A. ’ V 1012 Fourteenth St N W (Ground Floor', Washington, D C I T ~ ■ z._ OFFICE OPEN daily 9 AM-9 pm SUNDAYS 1-6 PM the DELRAY FREE par king at 1325 < street nw. r 4 C. ? * 3 BEDROOMS • 2 BATHS 59,690 $2OO p— —-—.—_—_- i LEFCOURT -4 i ■—m ALL PURCHASERS FROM WASHINGTON AREA 'o’2 14th STREET, N W BF ARE INVITED TO BE OUR GUESTS FREE AT THE ; WASHINGTON, D c .II * vlO NEW ROYAL PALM BEACH INN AND REST AU I ' -~’ c ' " c '" ‘ r '"- I RANT ON THEIR NEXT TRIP TO FLORIDA j r-.c Po . e- L' k - ».9?fllggSk!jSrfe‘ at -* 1 city sta t e i ————————— u many agents, record rnanfac turers and record distributors who wanted to arrange for ap pearances of entertainers of the show's financial problems. "As a result,” he said, “a , number of such managers, manufacturers, and distributors agreed to reimburse Click for the fees paid by Click to the performers in compliance with union scales. "I want to stress, however, that we did not accept talent just because reimbursement of fees was offered. We only ac cepted those performers who we thought should be on the show.” The disc jockey began his testimony with a 34-page state ment rebutting all of the im plications which have been made concerning his business I interests. He said he had been “con victed, condemned and de nounced” without a chance to tell his story. Angry Response by Moss This brought an angry re sponse from Representative Moss, Democrat of California. He objected to what he said was a tone running through the Clark statement that the committee had been "picking on you.” The Congressman recalled that Government officials who had first protested their inno cence had resigned after ap pearing before the subcommit tee. "We don't seek to get any one,” he said. “All we do is expose the facts to public scrutiny.” Mr. Moss also spoke with sarcasm about the parade of witnesses from the broadcast ing industry who had insisted that payments made to disc i jockeys was not payola. Mr. Clark was accompanied by Paul Porter, former Office of Price Administration chief, who is his counsel. 1 The disc jockey listed 33 busi ness enterprises in which he had had a financial interest at various times. They ranged from record and music publish ing firms to real estate and motion picture production. Denies “Exacting Tribute” He declared he had never used any of his business con nections to “exact tribute” from performers or the record industry for airing songs on his shows. He also insisted that he never “consciously” favored records in which he had a fi nancial interest. He added, however: "I did so without realiz ing it.” A committee-ordered statis tical study has shown that Mr. Clark played records of finan cial interest to him twice as -.often as others on his Ameri can Bandstand show. His own statistical report found just the opposite—that there was no evidence of any favoritism. Mr. Clark asserted there was nothing wrong or unethical in his involvement in three songs in which the committee has shown a particular interest. Butterfly. At the Hop. and Six teen Candles. - He was paid $7,000 as his p share of Butterfly royalties, . though he had made no invest » ment in the song, which be came one of the Nation’s big- i gest sellers. s Plugged Song Heavily r Mr. Clark had played the ’ song heavily during its rise in i popularity. He said he tried to turn down the $7,000. but the . song's owners insisted on giv t ing him a share of the profits f The disc jockey denied - charges heard earlier by the j House investigators that he had ? agreed to plug Sixteen Candles on his television program in s return for the placement of a - large record order with one of • I his firms. The 30-year-old Mr. Clark s is generally regarded as the most powerful as well as the • most popular of the Nation’s ■ldisc jockeys. It is widely be- > lieved in the industry that he can make a "hit” simply by I playing a record a few times on his shows. > Must Be "in the Groove” He took issue today with this' 1 assertion also. Air play alone ‘ cannot make a record a hit, he ' said. : “As is said in the music busi ness, 'if it is not in the groove’ it won't make it.” he said. “In ’ short, if the unknown quality that causes a record to be a hit is not there, no amount of pushing can make it a hit.” He denied ever receiving any ’ gifts with the “express or im ’ plied understanding” that he would favor records on his pro grams. both of which are car i ried over the American Broad- I casting Co. television network. I "Embarrassed” by Gifts He and his wife were both embarrassed about the stole 1 presented in 1958, Mr. Clark ’ said, adding that his wife had ■ bought a fur stole herself just the week before. He said he in- ' sisted on paying Mr. Bedell and : forced a $3OO check on him I the same day the gift had been 1 made. [ He did not learn until later that the fur piece was worth $l,OOO. Mr. Clark said. The ; ring and necklace were pre sented around the time of his ' I birthday in 1958. All three of; ; I the gifts were charged by Mr. Bedell to one of his companies I as a business promotion ex- 1 pense. . "My wife and I were most ' reluctant to accept these gifts,” i Mr. Clark said. He said they ’ kept them only because it was “difficult under the circurn- j • stances to do otherwise.” His wife has worn the necklace • but he has never worn the . I ring, he said. : Alert Is Ordered • For Pacific Flyer i . SAN FRANCISCO. April 29 , <APi.—Peter Gluckmann. San Francisco's flying watchmaker. 5 has not been heard from since J early Wednesday in his non stop. 8.000-mile flight from ’ Tokyo to New York. 5 The Coast Guard ordered an alert” for the portly. 36-year-old flyer who . took off in a small plane at ’ 12:08 a.m. <PDT> Wednesday. • He had enough fuel to keep ' flying until 7 p.m. tonight. SUMMIT Continued From First Page i for Berlin—an offer to respect ) the status quo for a given ; length of time in return for ■ minor concessions the allies might accept it. But they would I insist that their rights at the • end of this time would be the I. same as they are today. And !|any concessions they are pre-, i pared to make are not more i than they offered a year ago at I the Geneva foreign ministers' j conference. On disarmament, there’s still some hope that Mr. Khru-' ' shchev will be willing to talk ' seriously about at least some of points of the Western plan which the allies have been plug ging fruitlessly at Geneva for i weeks. It goes without saying, j however, that Mr. Khru i shchev's recent remarks on the subject have not encouraged i excessive optimism. Even on the usually reliable i catch-all known as "East-West relations,” officials seem un usually cautious on predicting ' results. Mr. Khrushchev is usu ; ally receptive to suggestions ’ aimed at increasing "cultural , exchanges" and trade. He may take kindly to the idea of more jco-operation in some scientific; fields. Two Tough Problems But two other matters up for discussion under this heading— "non-interference” in the inter nal affairs of other countries and aid to underdeveloped countries—present greater prob lems. Indeed, there are serious reservations in the allied camp itself about what can be practi cally accomplished on this line. In short, there's a strong and apparently deliberate hint that coming summit talks may not' justify another meeting, ati least not in the reasonably near' future. Some officials are nowi suggesting that it would be, better to wait a bit and see how things develop in the weeks after the first meeting before committing the West. The new line perhaps can be explained as a bit of pre-j summit tactics. The coolness of I the West may be away of warning Premier Khrushchev i that he cannot come to Paris| and expect to have everything | his own way. But at least it is a change in what has been an established Western plan up to this point. And it could reflect some basic rethinking at high levels of the whole question of summit diplomacy. I Gambling Report Slated in County ANNAPOLIS. April 29 iAP'. —A citizens committee in- j vestigating commercial gam bling in Anne Arundel County will report to the county com missioners Thursday night. i .1 ■* ♦ ">• i < \ ’ ■ Three words that say you’re SURE: / CROWN, f X PLEASE!” I • *- MM Jf iraWillMm 18 B Mil 11 IMISIBI If HI - Scoprauj Nothing else you can say, at any bar, in any ! ; ' whiskey. For smooth, flavorfill 7 Crown liquor store, speaks so well of you. When is the most widely respected and deeply ; you ask for 7 Crown, it shows you know mMI appreciated whiskey in all of America. .SAY SEAGRAM’S AND BE SURE V SINCE 1857 I.— ■ 1 J SUGRAM-DiSTIIIERS COMPIKY. NEW YORK CITY. BLENDED WHISKEY 85 PBOW «5% (HIM NEUTRAL SPIRITS. I The Rev. Charles F. Kirkley, chairman of the committee, said he had been advised that the conference originally scheduled for last night con flicted with a testimonial din ner for Gov. Tawes at College Park. Most county officials planned to attend the dinner. J The committee has been; . gathering data since last No t vember on the extent of slot ? machine and commercial bingo - operations in the county and - their effect on "the life, politics » and general well being of the s people of Anne Arundel County.” ' Record Beaver LANCASTER. WIS. (API.— ! Two Lancaster men trapped a , beaver that topped the previous Wisconsin record for size. The ' animal tipped the scales at 92 pounds 8 ounces, as certified by a conservation warden. The old mark was 84 pounds.