European Stars And Stripes (Newspaper) - September 21, 1986, Darmstadt, Hesse Age 4 the stars and stripes sunday september 21,1986 1960s probe of Reagan revealed cleared As payoff suspect Book says i f api remain a Pagan Urac inf Chunc hta it a in at mint i of a Infin nov afternoon Sci Washington of Ronald Reagan was investigated and ultimately cleared in a Federal criminal probe in the 1960s into suspected payoffs from the Hollywood conglomerate Mca to Rea Gan and other officers or the screen actors Guild according to a new Book. As part of the investigation Reagan s tax returns from 1952 to 19ss were subpoenaed by the antitrust division of the Justice department under attorney general Robert Kennedy author Dan Mold a says in dark Victory Ronald Reagan Mca and the the Justice department sought Reagan s tax return the week after the actor spent an afternoon testifying before a Federal grand jury empanelled to investigate the suspected payoffs and any other possible criminal activity involving Mca says Mold a. The author based portions of his Book on 6,000 pages of Justice department documents obtained 2vi years ago under the Freedom of information act by the entertain ment Industry publication daily variety which ran an extensive but largely unnoticed Story on the probe. The grand jury was part of an antitrust investigation conducted by the Justice department of alleged Monopo Listic practices in the entertainment Industry by Mca which was the largest Talent Agency in Hollywood. Reagan s grand jury testimony reprinted in the Book discloses that the actor repeatedly said he could not recall details of a waiver the actors Union Grante Mca in 1952, which allowed the Agency to engage in unlimited production of television shows. Mca waste Only Hollywood Talent Agency Ever Given such a Blanket exemption by the Union. The waiver meant Mca was acting As both the employer of actors and their agent who is supposed to negotiate the Best possible terms for them. At the time the Union granted the waiver Reagan was president of the screen actors Guild and Mca was his agent. Asked during his grand jury appearance whether he had Ever discussed the waiver with Mca executive Lew Wasserman Reagan said he might have mentioned it on social occasions but he could t recall. Deputy press Secretary Peter Roussel said the White House had no comment. Calls placed Friday to Wasserman s Universal City calif., office for comment were referred to Harold Haas Mca vice president and treasurer. Or. Wasserman does t do interviews said was Serman s Secretary Betty Brighthop. One source. Described Ronald Reagan As a Complete slave of Mca. A memo by the head Justice department investigator on the Case written the week after Reagan s grand jury appearance says we have. Taken Steps to obtain in come tax returns of. Reagan and seven other screen actors Guild officers whose Talent agent was Mca. The income tax returns according to the memo were to be one aspect in further development of the payola aspect of the investigation. As part of its investigation the antitrust division con ducted exhaustive interviews with dozens of entertain ment Industry sources about allegedly monopolistic practices committed by Mca. Reagan told the grand jurors the waiver was Given to Mca to stimulate employment in the to Industry. Employment was Down at the time in motion pictures. There was no comment on the Book from the scree Nacton Guild. Reagan was president of the Guild from 1947 to 1952and again from 1959 to 1960. In his 1965 autobiography Reagan supplied few detail about his grand jury appearance except to say he had 37% of californians surveyed prefer bottled or filtered water los Angeles a nearly four out of 10 Cali Fominas drink bottled or Home Millered water for its taste and because they fear tainted tap water a Survey found. Statewide 26 percent of those surveyed drink bottled water 11 percent drink Home filtered tap water and 60 percent drink tap water according to a los Angeles times poll published saturday. The other 3 percent said they did t know. The times poll interviewed 1,550 registered Cali fornia voters by Telephone for six Days ending sept. 9. Possible water contamination has become the focus of Public concern and debate in California. It has be come an Issue in the gubernatorial Campaign and a proposition on the nov. 4 ballot is aimed at protecting drinking water. But the poll found that More people in Southern California cited taste rather than safety As the main reason for buying bottled water or drinking Home filtered water. In Northern California health issues we recited More often. In los Angeles county 48 percent of the resident said bottled or Home filtered water was their usual source of drinking water the largest percentage inthe stale. In contrast 42 percent of those living in the rest of Southern California 33 percent in the san Francisco Bay area and 22 percent in the rest of Northern Californi drink bottled or Home filtered water the poll found. Duane Georgeson chief of the los Angeles depart ment of water and Power s water division said tap water is Safe. In terms of a consumer Protection Issue it would be very unfortunate that customers Are paying a thou Sand times More for bottled water based on a misconception that the bottled water is safer he said. The margin of error for the Survey was put at 3percent in either direction. Many Chicago police officers firefighters could face layoffs Chicago a almost half of Chicago s police officers and firefighters will be Laid off unless the City Council agrees to a record $79.9 million property tax increase by wednesday City officials say. The potential layoffs announced Friday would affect 5,600 police officers and 2,000 firefighters an would leave Chicago with a Public safety Force Ade quate to protect a City the size of Baltimore officials said. Baltimore has less than one third the population of Chicago. The City faces an $80 million shortfall in its $2.1 billion budget said budget director Sharon Cist Gil Liam. Friday s announcement outlined the second wave of layoffs threatened in recent Days. On thursday City officials revealed plans to furlough workers in the streets and health departments which would result inthe closing of half the City s health clinics and one third of its mental care centers and severe reduction sin garbage pickups. I would like to reiterate that this is not a scare tactic Ernest Barefield chief of staff for mayor Harold Washington said Friday. This is not a Washington s political opponents charged the administration was bluffing. This is deficit hysteria time said Alderman Ber Nard Stone who bad joined with other aldermen in defeating the tax increase at a sept. 12 Council meet ing. Spent a Long unhappy being interrogated by a Federal lawyer who d seen too Many Perry the Blanket waiver Reagan negotiated was a blatant conflict of interest prohibited by the Guild s bylaws when applied to the motion picture production. But at the time the Union s bylaws had not yet been amended to apply to the then new to Industry. One source interviewed in the Justice department probe described Ronald Reagan As a Complete slave of Mca who would do their bidding on anything according to a file memo by the chief investigator in the probe Leonard Posner. Another source told Posner it is unconscionable for the screen actors Guild to continue permitting Mca a Blanket waiver when it goes against All the rules of conflict of with Reagan s first tour As president of the Guild at an end in the Early 1950s and his film career in decline Mca arranged jobs for him in Las vegas nev., and in television. Reagan was paid More than $ 100,000 a year As the Host program supervisor and occasional Star of be the Ater the flagship program of Mca s new entry into the television production it May never be proven thai Reagan or any other Sag official pushed through the Sag Spe Cial arrangement with Mca and then received a suit Case filled with Cash it is Clear that within months of the Deal Reagan benefited personally financially professionally and politically from his relationship with Mca says Moldea s criminal charges were brought against anyone in the yearlong antitrust probe of Mca but the Federal government did break up the corporation forcing it to choose Between movie and to production or ils Talent Agency. The corporation closed Down its Talent Agency and expanded the much More lucrative production endow its business. Acc Loving or assistant attorney general in the anti Trust division said in a memo to the attorney general atthe close of the probe it was thought at the beginning of the grand jury that Sag might have purposely favored Mca for some illegal consideration. However the Evi Dence docs not show any such improper to the Rescue a police i pedal operations Only at Bottorf maw Dema Astles Bow to enter room to fes Cue hostage. To was part of presentation
