Alan Freed and Dick Clark were both employees
of ABC yet the treatment bestowed on each by ABC was quite
different.
On November 13, 1959 ABC sent an affidavit/questionnaire to every individual that had a hand in in the selection of music used by any ABC companies. Three days later Freed received a call from station manager Ben Hoberman asking, "Where is your affidavit? To which Freed told Hoberman he couldn't because he couldn't answer no to the questions. Freed also reminded Hoberman that he knew that he was "in the music business"
"I can't sign this because if I did I would be perjuring myself. Later Freed would tell Hoberman that he would sign it "When I see Martin Block's and Dick Clark's signature." Hoberman said that was "impossible and "out of his department."
"We all work for the same company. If they sign it I will sign it." That was the last conversion concerning the payola affidavit Freed had with Hoberman. The station then turned the matter over to its attorneys.
Warren Troob who was now handling Freed's payola affidavit negations with WABC received a call from network attorneys, who allegedly told Troob that more than 70% of the affidavits from ABC's affiliated stations had been signed and returned. Troob said that he wanted the same affidavit for Freed that Clark had signed. The affidavit that Troob was referring to was the one Clark's attorneys had drawn up specially for him. It would be brought up in the House Payola Hearings where it would be called " Christian Dior affidavit specially tailor to your (Clark's) needs."
On November 21, Freed wrote ABC a letter in which he said asking for a payola affidavit " evince<d> a lack and faith and understanding" by ABC and was improper and uncalled for." Freed said that ABC's asking as to whether he had ever played or refused to play, a certain record because of a payoff was ridiculous in the extreme" and that ABC was aware that he had always been "extremely zealous in protecting the high quality" of his radio program and would not compromise such quality for money or any other consideration."
Also mentioned Freed's interest in various music publishing and recording and was a songwriter, all of which are "a matter of public record and common knowledge."
In closing Freed accused ABC of malicious, unfounded accusation" and stated that if signing such a payola affidavit was a "necessary prerequisite" of his employment, ABC should have insisted on him signing before he was hired. Freed found it "impossible to accede" to the network's payola request, "for to do so would violate my self-respect."As Free was writing the letter, Troob was meeting with a network attorney where he was told it was expected to be signed with the answer to all the questions to be no. To which Troob told the attorney he wouldn't permit Freed to sign such an affidavit. Troob was then told Freed had until three that afternoon to return the affidavit signed.
After this Troob met with Freed, told him what ABC's position was Freed said he felt there was "too much American Broadcasting news in the paper now and I think maybe get some body else of the front page and me on it. Warren, I think I'm going to be fired anyway, whether I sign or not." Freed told Troob to call ABC's attorney and tell them he was ready to sign the a "but ask him if it made any difference (whether I sign or which way I answer the questions)."
The call was made and as Freed had thought, ABC's attorney said that "it would not make any difference whether he signed or not, he is fired."
As the payola scandal was breaking, Clark told ABC President Leonard Goldenson he never accepted money to play a record, never refused to play record because he wasn't offered money and never accepted money from anyone.
" I make a little bit of money, where
am I going to invest? Why shouldn't invest it in the music
business?"
Dick Clark
Goldenson told him he was to sell his music interests or resign from ABC. Clark divested. Goldenson protected him by letting him an affidavit . Clark's attorney modiefid affidavit payola was as agreement between one person and another person to play a particular record. Learning that Tony Mammarella, Clark's Bandstand producer, had taken money from seven companies for "advice" and over coming deficiencies in distribution, Goldenson and Clark added a paragraph to the affidavit distancing themselves from Mammarella. early yesterday morning one of my programming associates revealed to me in certain information which he had concealed from me. I had no previous knowledge or suspicion of these facts. his resignation has been accepted
On November 18, 1959 before Freed was fired, ABC issued a statement exonerating Clark and expressing complete confidence in him. After examining "all available evidence, the management of the network believes that he had neither solicited nor accepted any personal considerations, money or otherwise, to have any performer appeared, or play records, on any program. Also that Clark had voluntarily had divested himself of all music related holdings to conform with the new policy at the network. Clark said "That I appreciate the people I work for stand behind me." The fact is that no investigation had taken place, ABC simply taken Clark at his word.
Clark's Payola Hearings Testimony
On Friday April 29, 1960, Clark testified with lawyer Paul Porter sitting behind him The hearing was gaveled to order and Clark proceeded to to read thirty-four page prepared statement that took forty minutes. In it Clark outline his professional career from Syracuse to American Bandstand, details of the thirty-three businesses in which he had a financial interest, explained what each did, partners and financial interest.
Things began to turn around for Clark when Leonard Goldenson president of ABC's television network testified for Clark Calling Clark "upright" and of "good character." Goldenson had good reason to be proud of Clark as he had single-handedly put ABC on the daytime map. With Clark American Bandstand had reached $20 million ad revenue, while Freed's on radio was $200,000. After Goldenson's testimony the committee's attitude toward Clark began to change.
The hearings ended with Harris saying of Clark "You are obviously a fine young man. You started in this business young and you are attractive to young people. Therefore, your responsibilities with your influence can be great. I do not think you are the inventor of the system; I do not even think you are the architect of it, apparently. I think you took advantage of an unique opportunity to control too many elements in the popular music field, through exposure of records to a vast teenage audience."
Clark would catch a break a few months later. Philadelphia district attorney Victor Blanca issued thirty-nine summons to DJs and record company personnel for alleged payola violations. Among them were Chips distributing and Jamie's records both which Clark had invested in. Since Clark was not a corporate officer in either he slipped below the radar. Ironically Blanca exempted Clark's station WFIL from investigation because the FCC and FTC had given it a clean bill of health
