FEDERAL ELECTION COMMISSION "17V]';I US K Si RELUNWI W\SING TON,).C

$FEDERAL ELECTION COMMISSION "17V]';I US K Si RELUNWI W\SING TON,).C$

FEDERAL ELECTION COMMISSION "17V]';I US K Si RELUNWI W\SING TON,).C. 20461

CERTIFIED NtAIL RETUR I RECEIPT REQUESTED

Mr. John Dolan March 17 1977 National Conservative Political Action Committee 1911 N. Fort Myer Drive Suite 906 Arlington; VA 22209

Re MUR 299 (76)A

Dear ,!r. Dolan,

On February 3, 1977, the Commission voted to terminate its inquiry into violations of the Federal Election Canpaign Laws by Burcham for Congress Committee and the National Conservative Political Action Comsmittee alleged in the enclosed complaint. Accordingly, the Com-mission intends to close its file on this matter.

If you have any questions, please contact David Spiegel (telephone no. 202/382-4055). The file reference number. is 299 (76)A. Sincerey yours,

W'1illiam C, Oldaker General Counsel

Enclosures: General Counsel Report; Certification of Commission determination; Complaint FEDERAL ELECTION COMMISSION

1%.'Q5KS 1\(IONI F W 2N't IU2%I,, SdRItf NWV

CERTIFIED MAIL RtTUR'] RECEIPT REQUESTED

11r. William Remsburg March 17, 1977 Treasurer Burcharm for Congress Conmittee 5809 Landover Road Cheverly.. Md. 20795

Re MUR 299 (76)

Dear Mr. Remsburg:

On February 3, 1977, the Conission voted to terminate its inquiry into the violations of the Federal Election Campaign Laws by Burcham for Congress Committee and the National Conservative Political Action Comn.ittee alleged in the enclosed complaint. Accordingly the Commission intends to close its file on this matter.

If you have any questions, please contact David Spiegel (telephone no. 202/382-4055). The file reference number is 'IIUR 299 (76).

Sincerely yours,

William Oldaker General Counsel Enclosures: General Counsel Report; Certification of Commission determination; Complaint

& In

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* FEDERAL ELECTION COMMISSION

1 2S k SIRti N.VW WAY.\St1\(# ION' D). 20+401

CE:RTIFIED -MAIL March 16( 1977 RETURN RECEIPT REQUESTED

.ir. Charles Sewell Citizens for Soellman Re-election Ileadquarters 6000 Greenbelt Road

- Greenbelt, Md. 20770

Re: MUR 299 (76)

Dear 11r. Sewell

On February 3, 1977, the Commission voted to terminate its inquiry into alleged violations of the Federal Election Campaign Laws by Burcham for Congress Committee and the National Conservative Political Action Co.-mittee. Accordingly, the Co.mission intends to close its file on this matter.

TT If you have any questions, please contact David Spiegel (telephone no. 202/382 4055), The file reference number i- IUR 299 (76).

Sincerely yours,

- . /

William Oldaker General Counsel

Enclosures: General Counsel Report; Certification of Commission determination

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FEDERAL ELECTION COMMISSION 1 23 K STR EIT \ W' WASHING ION.!) (. 20463

FEBRUARY 14, 1977

TO: THE RECIPIENTS OF COMPLIANCE DOCUMENTS FROM: THE OFFICE OF THE COMMISSION SECRETARY1V RE: MUR 299 (76)

Attached please find Commissioner Staebler's Dissenting Opinion to find no Reasonable Cause to Believe that a violation of the FECA has occurred in MUR 299 (76) 0 0 MUR 299 (76)

DISSENTING OPINION OF COMMISSIONER STAEBLER in this mat- I must dissent from the Commission's decision a viola- ter to find no Reasonable Cause to Believe that tion of the FECA has occurred.

spent by The Complaint alleges, inter alia, that monies (NCPAC) the National Conservative Political Action Committee and reported on behalf of Congressional candidate Burcham e s by NCPAC as independent expendur were in actuality the made in cooperation, consultation, or -oncertwith contributions Burcham camo.ain and, therefore, constitute is in ex- within the meaning of the Act,-tn amount of which cess of the iit

th General Counsel's The Com4issi ' investi-ation fou.d and had the Report states that NCPAC and the Burcham campaign in-kind follow.ng mat-rial Contacts: th.e campaign received m oney contribu-ons -rom NCPAC; NCPAC loaned -he ca.:paign the salary of one for an agreed-upon purpose; and NCPAC paid of time and :CPAC employee of the campaign for a short period subsequently employed that individual itself.

discussions re- The campaign and NCPAC deny that explicit took place. garding the alleged independent expenditures NCPAC made a Based on those denials and on the fact that behalf of other large namber of sLjmilar advertisements on no further candidates, General Counsel concludes that action by the Commission is warranted.

• , r. . ." 41 Page Three 0 0

1 contend that the tests laid out by the Court and Congress

necessarily go beyond the literal language of communication concerning a particular expenditure; and that a course of communication between a particular campaign and a poten-

tial expender may, at least where the course of communica- between tions concerns financial matters, so establish a nexus com- the two entities as to preclude an expenditure by the

mittee from being independent. The instant Complaint,

where in-kind contributions, loans, sharing of staff, and occurred on-going, though allegedly non-:inanciaL discussions just between tne campaign and the spending committee,is such a mat-e-.

inter- Not onIy would the Supreme Court test allow a narrower orezation or what constitutes "independence"; but, I believe,

the Ourposes of the Act requi re the Comnission to draw such of a campaign's a line. a person or group may be made aware financial need, solicited for a contribution (which solici-

of the tation almost inevitably will involve a discussion to that soli- issue positions of the candidate), and respond on citation, then later make an independent expenditure contributions behalf of that candidate, then I fear that the by the Supreme li.mits so carefully drawn by Congress and upheld wealthy in- Court will be of little effect. Indeed, it is groups, the dividuals and sophisticated special interest who will very targets of public and Conaressional concern, and be best equipped to take advantage of such a narrow

legalistic interpretation of the law. Page Five apply the very narrow, unrealistic test of independence set out in the General Counsel's Report, I believe it makes a mistake of law and judgment with the potential for serious adverse consequences to the political process. For either reason, I dissent.

, /

-7...'--/J , ,,

/...... {,, 2sI BEFORE THE FEDERAL ELECTION COMMISSION

In the Matter of ) National Conservative Political ) Action Committee ) MUR 299 (76) and ) Burcham for Congress Committee )

CERTIFICATION

I, Marjorie W. Emmons, Secretary to the Federal Election Commission, do hereby certify that on February 3, 1977, the Commission determined by a vote of 5-1 that there was no reason to believe that a violation of the Federal Election Campaign Act of 1971, as amended, had been committed in the above-captioned matter and that the file should be closed. Voting to close the file were Commissioners Aikens, Harris, Springer, Thomson, and Tiernan. Voting not to close was Commissioner Staebler. Accordingly, the file in this matter has been closed.

S ar to e ommsons Secretary to the Commission

E BEFORE THE FEDERAL ELECTION COMMISSION

In the Matter of ) MUR 299 (76) National Conservative Political ) Action Committee ) and Burcham for Congress Committee )

GENERAL COUNSEL'S REPORT

I. Status C On October 29, 1976, Citizens for Spellman, the authorized principal campaign committee of Gladys Noon Spellman, a John 7congressional candidate, filed a complaint against Burcham, Ms. Spellman's opponent. It was alleged that certain independent expenditures made by NCPAC on behalf of the Burcham campaign were in fact contributions and as such violated the Federal Election Campaign Act of 1971, as amended. On November 18, 1976, the Commission determined that there was reason to believe a violation of the Act had been committed in the above-mentioned matter. By letters of November 22, 1976, the Commission notified respondents of this action, and consistent with the General Counsel's report to the Canmission,

respondents were asked to supply certain specific information -2-

regarding expenditures made by NCPAC in support of candidate John Burcham and reported as "independent expenditures." (See attached letters.)

II. Allegations National Conservative Political Action Committee (NCPAC) reported making independent expenditures of $23,327.69 in rOctober, 1976, for communications advocating the election of CJohn Burcham. The independence of these disbursements was

questioned because of NCPAC's payments on two occasions to a consultant working for the Burcham campaign committee, as well as a loan by respondent to the Burcham campaign committee for a telephone deposit. The Commission found 7reason to believe that such contacts between NCPAC and the N Burcham campaign committee tainted the later media expenditures which were reported as independent, resulting in violations of 2 U.S.C. §434(b) and 2 U.S.C. §44la(a) (2)(A). As for the Burcham for Congress Committee, it was alleged that in failing to report the above-mentioned NCPAC expenditures as transfers, the Burcham committee violated 2 U.S.C. §434(b)(2). In addition the Committee had failed to report a $700 contribution-in-kind from NCPAC. III. Evidence

A. NCPAC The Commission received information from NCPAC's attorney on December 8, 1976, which included the following: (1) - a sworn statement from the Committee's Executive Director, John T. Dolan, describing independent expenditures made on behalf of John Burcham and listing personnel involved in planning and authorizing those expenditures;

(2) - copies of the contents of the advertisements for which the independent expenditures were made;

Hanns R. Crane, C7 (3) - a sworn statement from N, who was paid by NCPAC for consulting work he did P- for the Burcham campaign committee. Mr. Dolan's swon, statement provides a description of independent expenditures totalling $40,719.67 in support of John Burcham, all of which was paid directly to those individuals or businesses providing the media services. Mr. Dolan denies any consultation, cooperation or consent from Burcham or his agents with regard to these payments; moreover, he maintains that before NCPAC made the -4

expenditures, Dolan checked to be sure that those persons giving professional consultation as to the advertisements had no association with Burcham. Copies of the contents of the advertisements themselves were attached to Mr. Dolan's sworn statement. They indicate that all of the communications dealt almost solely with stands on issues taken by John Burcham's opponent, Gladys SSpellman. No specific information was communicated about

positions taken by Burcham himself - i.e., no information which implies NCPAC must have had contact with Burcham's

(campaign organization in order to plan and write the r__- advertisements. 4Mr. Dolan's statement also addresses NCPAC's relationship Cwith Hanns Crane, to whom the Committee made payments in return kfor his consulting with the Burcham campaign committee. Dolan

describes Crane's role in this matter as follows: Crane was a twenty year old college student employed by NCPAC on June 18, 1976, his services were then offered to the Burcham committee as an in-kind contribution, and when the Burcham committee had no further need of his services after August 13, 1976, he returned to the offices of NCPAC where he performed clerical duties for approximately one week for which he was paid $2.50 per hour. This information is consistent

<1m with the sworn statement of Hanns Crane himself. He alleges that he worked on two position papers and assisted with precinct organization for the Burcham Committee. Copies of the position papers accompanied Mr. Crane's statement-4' Crane also alleges that during the time he was working for the Burcham committee and NCPAC, no one discussed with him NCPAC's making of independent expenditures in support of John Burcham. B. Burcham for Congress Committee In responding to the questions put to him by the Commission, the Burcham for Congress Committee's treasurer, Mr. William Remsburg, denied the committee's having had any contact with NCPAC regarding the making of expenditures for the above-mentioned communications. Remsburg's description of the Burcham committee's relationship with Hanns Crane is consistent with that given in the sworn statements of NCPAC's Executive Director and from Crane himself. Remsburg maintains Crane came to the Burcham campaign to help on issue papers, but that he did not work out well in that position and subsequently worked on precinct organizing. Remsburg further alleges that permission was sought from NCPAC to terminate Crane, who resigned thereafter. -- - I I

-6-

In response to a question regarding the Burcham committee's failure to report part of NCPAC's payment for Crane's services as a contribution-in-kind, Remsburg justified this failure on the grounds that NCPAC di. not notify the Burcham Committee that the payments had been made until after the election. He claims that the Burcham committee inadvertently failed to report the payments at that time, and makes assurances that an amended report will be filed in the immediate future. (The amended report was filed on December 23, 1976.) With respect to the $200 NCPAC loan to the Burcham committee, Remsburg described this transaction as one in which the campaign committee contacted NCPAC to ask for the loan to cover a phone deposit needed in setting up a youth headquarters.

IV. Legal Analysis Respondents have submitted detailed evidence, including statements by persons named by complainant, which explicitly rebuts complainant's allegations that certain communications paid for by NCPAC may have been made in cooperation and consultation with John Burcham or his agents. The fact that the content of the communications in question contained no .. . 4..- 0" r

-7-

substantive information about the campaign or policy positions of John Burcham but rather emphasized policy positions of his opponent which NCPAC considered objectionable, as well as a report in the Washington Post of October 22, 1976, that NCPAC used identical advertisements on behalf of at least three other candidates in three other states, suggests that the communications arepresented the thoughts of NCPAC rather than those of the C candidates supported by the advertisements.

V. Conclusion CIn light of the amount and nature of evidence submitted

to the Commission by respondents, I recommend that the file be closed regarding this matter.

William C. Oldaker General Counsel

Date: 7

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December 16, 1976

Federal Election Commission 1325 K Street, N. W. Washington, D. C. 20463

Re: MUR 299 (76) B

Gentlemen:

In response to the questions accompanying your letter dated November 22, 1976 and received by us on December 4, 1976, we submit the following answers:

I. Question: Identify those persons at the Burcham for Congress Committee involved in the process of planning and authorizing expenditures from the Committee's accounts.

Answer: Carter Clews, Campaign Manager

Dennis Brown, Campaign Coordinator

Question: Also identify those persons responsible for setting general policy regarding the Committee's expenditures.

Answer: Carter Clews, Campaign Manager

Dennis Brown, Campaign Coordinator

2. National Conservative Political Action Committee has reported the following "unauthorized, independent expenditures" in support of John Burcham:

October 18, 1976 $ 185.85 Payment to WETA-TV October 19, 1976 $ 4,152.25 Payment to WTOP-TV October 19, 1976 $ 1,134.75 Payment to WTTG-TV October 20, 1976 $10, 2 48.00 Payment to Kal, Merrick & October 20, 1976 $ 244.34 Salan Advertising October 25, 1976 $ 7,012.50 Payment to WMAL-TV October 26, 1976 $ 350.00 Payment to Gary Sukow 0 - 2 - 4 cember 16, 1976

2. With respect to the above-mentioned payments, please provide the following information:

a) Question: Did the making of any of these expenditures involve contact with any Burcham for Congress Committee personnel? If so, identify the personnel, and explain the nature of the contacts.

Answer: No.

b) Question: Did any Burcham for Congress Committee personnel have any responsibility for the contents of any advertisements for which these expenditures were made? If so, please identify the personnel, and explain the nature of the responsibilities.

Answer: No.

3. NCPAC has reported the following transactions relating to your committee:

July 12, 197'6 $700.00 to Hans Crane for "consultant fee, working for Burcham for Congress: August 13, 1976 $350.00 to Hans Crane for "research, fieldwork, consultant fee - Burcham for Congress - general contribution-in-kind" October 4, 1976 $200.00 loan for downpayment on telephone

With respect to these payments, please provide the following information:

a) Question: Has Burcham for Congress Committee reported the July 12, 1976, contribution to the Federal Election Commission? If so, identify the report on which the contribution was included. If not, please explain.

Answer: No. In August 1976, NCPAC notified the Burcham for Congress Committee that NCPAC had made a contribution-in-kind in the amount of $350 to the Burcham for Congress Committee (services of Hans Crane). That information was included in our Report to FEC for the period ended 9/30/76. By letter dated October 28, 1976, NCPAC further notified us that, through an accounting error, NCPAC had failed to inform us of an additional $700 in-kind-contribution for Hans Crane's services. The October 28 letter was received by the Committee in early November, after the election. We inadvertently failed to report the $700 to the FEC. An amendment to reflect the $700 will be filed in the immediate future. / - 3 - ,4~w -3-0cember 16, 1976

3. b) Question: Provide a detailed description of the purpose of these payments.

Answer: Hans Crane initially came to the campaign to help the press secretary in researching issues for press releases and position papers. After approximately one week, Carter Clews (campaign manger) realized Crane could not effectively serve in that capacity. Thereupon, Clews transferred Crane to the precinct staff to aid in setting up the field organization. When Crane did not perform effectively in that capacity, Clews obtained permission from John T. Dolan, Executive Director of NCPAC, to terminate Crane. Previous to the termination, Crane resigned.

When funds were being sought for a telephone for Youth Headquarters, NCPAC was contacted. $200 was obtained as a loan to cover deposit required by the telephone company.

c) Question: Identify the National Conservative Political Action Committee personnel with whom your committee dealt concerning these contributions.

Answer: John T. Dolan,, Executive Director

d) Question: Identify the Burcham for Congress Committee personnel who had contact with the National Conservative Political Action Committee personnel concerning these contributions.

Explain the nature of any contacts between National Conservative Political Action Committee personnel and Burcham for Congress Committee personnel, as noted in c) and d) above.

Answer: d) and e)

Carter Clews, Campaign Manager - to request contributions and to discuss Hans Crane

Dennis Brown, Campaign Coordinator - to discuss displeasure with Hans Crane's performance

Joe Barrett, Consultant for Precinct Organization - to discuss displeasure with Hans Crane's performance

Pete Infinger, Youth Coordinator -to obtain funds for telephone

Very truly.,yours,

7, 1 AK ~ J /Ztt 4~/ ~4.

)Aj ~;?s-~~->-- C//Cs & .7,'< ~ ~7 *• RE*IVE DEC 8197$

SEDAM, HEROE & SHREEES ',a.,IO, ATTORNEYS AT LAW

7600 OLD SPRINGHOUSE ROAO McLEAo VIR.GINIA 21 6 EC P4

GLENN J. ,AIDAM. JR. (703) 82 - I000 9701 PENNSYLVANIA AVENUE N. W. J. CURTIS t-ERGE WASHINGTON, 0. C. 20006 FREOERIC, L SHREVES,TE (202) 831-1000

THOMAS M DAVISIt CHESTER W. KITCHINGS. JR.' fRl niuE.B BENJAMIN P A. WARTHEN" December 6, 1976 80 WERED

D C-ONLY VA ONLY

Federal Election Commission 764079 Washington,1325 K Street, D. C.N. W.20463

Re: MUR 299 (76)A

Dear Sirs: IThis letter is written on behalf of our client, VIM the National Conservative Political Action Committee, in response to the letter from the General Counsel of the Federal Election Commission, dated November 22, 1976, which notified the National Conservative Political Action Committee that the Federal Election Commission has received a complaint against the National Conservative Political Action Committee which alleges certain violations of the Federal Election 7Campaign Act of 1971, as amended (the Act). Your letter further reported that the Federal Election Commission has reason to believe that the matters alleged in the com laint state a violation of 2 U.S.C. §434(b) and 2 U.S.C. 44I(a)(2)(A) in that expenditures reported as "independent" on reports filed on behalf of the National Conservative Political Action Committee may not have been independent; and, that, if such expenditures were in fact contributions, they may exceed the legal limit on contributions under 2 U.S.C. §441(a)(2)(A). You have numbered this matter MUR 299 (76)A. We welcome this opportunity to demonstrate that the allegation contained in the subject complaint are without merit. The complaint alleges specifically that certain expenditures made by the National Conservative Political Action Committee for the production and placement of television and newspaper advertisements advocating the election of Mr. John Burcham were not independent expenditures under 2 U.S.C. §431(p) and section 109.1 of the proposed regulations of the Commission. The complaint predicates this allegation on a report filed with the Commission by the National Conservative Political Action Committee, showing a consultant fee paid to one Hanns Crane who worked for the Burcham for Congress Committee. The complaint then attempts to draw the conclusion

...... -- ...... r ... OMMMOR

Federal Election Commission Page Two December 6, 1976

that, because of the mere payment of this fee, the expenditures in question were made based upon information about Mr. Burcham's plans, projects or needs provided to the National Conservative Political Action Committee by Mr. Burcham or by his agents, with a view toward having an expenditure made. We respectfully submit that the expenditures in question were made in full, complete and strict compliance with the provisions of 2 U.S.C. S431(P) and Part 109 of the proposed regulations of the Commission. Enclosed herewith is the sworn statement of Mr. Hanns Crane in which he states, among other things, that he performed some research for the Burcham for Congress Committee and some clerical duties for the National Conservative Political Action Committee, but that at no time did he ever discuss the making of independent expenditures with representatives of either Committee. In addition, there is enclosed herewith the sworn statement of Mr. John (Terry) Dolan, the Executive Director of the National Conservative Political Committee, in which he states, among other things, that at no time did he ever discuss the making of independent expenditures with Mr. Crane or with anyone associated with the Burcham for Congress Committee. These statements make it clear that the subject expenditures were not made with the cooperation or the prior consent of, or in consultation with, or at the request or suggestion of, Mr. Burcham, or any agent or authorized committee of Mr. Burcham. With reference to the subject complaint, we would like to note that it was signed by Mr. Charles Sewell. As Mr. Sewell is and was not a candidate, he has failed to comply with section 111.2(b)(4) of the regulations in that he has not stated whether or not he filed the complaint on behalf of or at the request or suggestion of a candidate. This is not otherwise self evident on the face of the complaint, which does not bear the registered name of any political committee. Regardless of the technical default in the complaint, we trust that the enclosures contain sufficient information to demonstrate to the Commission that no action should be taken against the National Conservative Political Action Committee in connection with the subject allegations. In Federal Election Commission Page Three December 6, 1976 the event that you have any questions with respect to the enclosures, or if we may otherwise be of assistance to you in your investigation of this matter, we would be pleased to cooperate. Since ly yours,j

J. urtis Herge6 7

enclosures

f 0 M U1 2-ct7 ( -76 ) Q STATE OF VIRGINIA COUNTY OF FAIRFAX ) to-wit:

JOHN T. DOLAN, being duly sworn, on the day of December, 1976, deposes and says:

1. That he is the Executive Director of the National Conservative Political Action Committee, having its principal office at 1500 Wilson Boulevard, Arlington, Virginia 22209 (having moved its offices to that location in November, 1976, from 1911 N. Ft. Myer Drive, Arlington, Virginia 22209).

2. That the purpose of this statement, which is given voluntarily and of his own free will, is to provide a response to a complaint filed with the Federal Election Commission and forwarded to the National Conservative Political Action Committee by the Federal Election Commission, by letter dated November 22, 1976, bearing the number I4UR 299 (76)A.

3. That the persons at the National Conservative Political Action Committee involved in the process of planning and authorizing expenditures from its accounts are: Charles R. Black, Chairman; Roger Stone, Treasurer; and, John T. --- ~-' ,,4 Dolan, Executive Director. That the persons at the National Conservative Political Action Committee responsible for setting general policy regarding expenditures are: Charles R. Black,, Chairman; Roger Stone, Treasurer; and, John T. Page 1 of 8 Dolan, Executive Director, subject, however, to the general supervision of its Board of Directors, consisting of Ann Artell, Tim Baer, Charles Black, Brad Bradley, Leroy Corey, Frank Donatelli, George Dunlop, David Nickles, William Saracino and Roger Stone.

4. That the National Conservative Political Action Committee made the following independent expenditures for communications advocating the election of Mr. John Burcham:

a. The following sums were paid by check on the dates indicated to Mr. Gary Sukow, 3734 N. Pershing, Arlington, Virginia, for services rendered in the production of the television advertisement: October 8, 1976: $71.44; October 15, 1976: $142.88; October 26, 1976: $350.00.

b. The sum of $185.85 was paid by check on October 18, 1976, to WETA-TV, 3620 27th Street, Arlington, Virginia, for studio t_ me and dubbing services in connection with the production of the television advertisement.

c. The sum of $4,152.25 was paid by check, on October 19, 1976, to WTOP, 40th & Brandywine Street, Washington, D. C., for broadcasting the television commercial.

d. The sum of $1,134.75 was paid by check, on October 19, 1976, to WTTG, 5151 Wisconsin Avenue, Washing- ton, D. C., for broadcasting the television commercial.

Page 2 of 8 e. The following sums were paid by check on the dates indicated to Kal, Merrick & Salan, Inc., 2141 Wisconsin Avenue, Washington, D. C., an advertising firm, for the production and publication of the newspaper advertisement: October 20, 1976: $10,248.00; October 20, 1976: $251. 00.

f. The sum of $324.00 was paid by check on October 22, 1976, to WMOD, 1680 Wisconsin Avenue, Washington, D. C., for broadcasting the radio commercials.

g. The sum of $100.00 was paid by check, on October 25, 1976, to Washington Talk, 641 Florida Avenue, Washington, D. C., a newspaper, for the publication of the newspaper advertisement.

h. The sum of $7,012.50 was paid by check, on October 25, 1976, to WMAL-TV, 4400 Jennifer Street, Washington, D. C., for broadcasting the television commercial.

i. The sum of $44.80 was paid by check, on October 26, 1976, to Capital Recording Co., 5400 Carolina Place, Springfield, Virginia, for studio recording services in connection with the production of the radio commercial.

j. The sum of $81.38 was paid by check, on

October 26, 1976, to Aftra Saga, Chevy Chase Center Building,

Page 3 of 8 Washington, D. C. for services rendered as the announcer/ narrator of the radio commercial.

k. The following sums were paid by check on the dates indicated to Metro Printing & Mailing, 8446 Lee Highway, Fairfax, Virginia, for printing, postage and mailing services in connection with the letter mailed to approximately 85,000 voters in Mr. Burcham's District: October 26, 1976: $11,700.00; October 28, 1976: $2,581.20; November 1, 1976: $2,234.62.

1. The sum of $105.00 was paid by check, on November 12, 1976, to Wide World Photos, Inc., 50 Rockefeller Plaza, New York, New York, for the photograph enclosed with the letters.

5. That the independent expenditures described in paragraph 4, hereof, were for a newspaper advertisement, a representative copy of which is annexed hereto; for a letter which was mailed to approximately 85,000 voters in the Fifth Congressional District in Maryland, a representative copy of which is annexed hereto; for a radio commercial, the script of which is annexed hereto; and, for a television commercial, the script of which is annexed hereto.

6. That each such communication contained a clear and conspicuous statement to the effect that it was not

Page 4 of 8 authorized by any candidate and that it was authorized and paid for by the National Conservative Political Action Committee, Charles Black, Chairman.

7. That your deponent (John T. Dolan) and the

Director of Research of the National Conservative Political Action Committee, Merrill Jacobs, were the personnel of the said Committee that were involved in the planning and authorizing of the expenditures. In addition, planning assistance was rendered by James L. Martin, President of Martin Adver- tising Agency, Inc., 8320 Old Courthouse Road, Vienna, Virginia. Mr. Martin is a consultant to the National Con- servative Political Action Committee.

8. That the contents of the subject communications were determined by your deponent, with the assistance of the research provided your deponent by Mr. Jacobs and the advice of Mr. Martin, Mr. Sukow and the firm of Kal, Merrick & Salan, Inc. No part of the content of the subject communications were derived from campaign materials prepared by Mr. Burcham, the Burcham for Congress Committee, or their authorized agents.

9. That the independent expenditures were made without the cooperation or prior consent of, and without consultation with, Mr. John Burcham, the Burcham for Congress Committee or any agent of Mr. Burcham; and, that such independent expenditures were not made in concert with, or

Page 5 of 8 at the request or suggestion of Mr. Burcham, the Burcham for

Congress Committee, or any agent of Mr. Burcham.

10. That the content of the communications and

the making of the independent expenditures were not based upon information about Mr. Burcham's plans, projects, or needs provided to your deponent or to his knowledge, to any other individual associated with the National Conservative al Political Action Committee by Mr. Burcham, or by Mr. Burcham's rately agents, with a view toward having an expenditure made.

C 11. That your deponent exercised meticulous care in considering making the independent expenditures and in planning and authorizing the expenditures by, among other things, satisfying himself that Mr. Sukow, Mr. Martin and

the firm Kal, Merrick & Salan, Inc., had no association with Mr. Burcham's campaign before discussing the proposed expenditures with them.

12. That, on or about the 18th day of June, 1976, your deponent, on behalf of the National Conservative Political Action Committee, employed Hanns R. Crane, a college student. dge That your deponent, on or about the 18th day of June, 1976, ve inquired of Mr. Carter Clews, the campaign manager of Burcham dent

for Congress Committee, whether or not he could utilize the services of Mr. Crane which would be treated as an in-kind contribution by the National Conservative Political Action

Page 6 of 8 0 0 when your deponent then telephoned Mr. Crane to advise him of the receipt from the Federal Election Commission of the subject complaint. 6N

OHNT

Sworn to and subscribed before me, a Notary Public in and for the State and County first above written, on the ?M day of December, 1976. My commission expires: ow

Notary Public

/ Page 8 of 8 GLADYS SPELL%,AN SAYS SHE'S CONSERVATIVE WITH YOUR MONEY WELL IF THAT'S SO...WHY WAS SHE NAMED ONE OF.THE BIGGEST SPENDERS IN CONGRESS BY THE NON PARTISAN NATIONAL TAXPAYERS UNION. WHY DID MRS. SPELLMAN VOTE FOR MORE INFLATION BY INCREASING THE NATIONAL DEBT CEILING. WHY DID SHE CAST THE DECIDING VOTE THAT GAVE HER AND HER CRONIES IN CONGRESS A NICE FAT PAY RAISE. .A PAY RAISE THAT AUTOMATICALLY INCREASE-WITH THE INFLATION SHE CAUSES. WHY DID MRS. SPELLMAN VOTE FOR 73 BILLION DOLLARS IN INFLATIONARY DEFICIT SPENDING..TIIE BIGGEST DEFICIT IN THE HISTORY OF OUR NATION. THE FACTS SPEAK FOR THEMSELVES..GLAYDYS SPELLMAN IS ONE OF THE BIGGEST SPENDING LIBERALS IN CONGRESS.. MRS. SPELLMAN THOUGHT SHE WOULD FOOL YOU WITH ELECTION YEAR RHETORIC..BUT SHE'S WRONG.. JOHN BURCHEM IS AGAINST IRRESPONSIBLE GOVERNMENT SPENDING THAT CAUSES INFLATION ~/~ JOHN BURCHEM WANTS TO SAVE YOUR TAX MONEY AND * IHBc - VOTE NOVEMBER 2nd and VOTE FOR

JOHN BURCHEM FOR CONGRESS....

N THIS COMMUNICATION IS NOT AUTHORIZED BY ANY CANDIDATE N. IT IS PAID FOR BY THE NATIONAL CONSERVATIVE POLITICAL ACTION COMMITTEE.... CHARLES BLACK..CHAIRMAN.

- I i 0 JOHN G. STOCK, JR. 2900 64th Avenue Cheverly, Maryland 20785

October 28, 1976 Dear Friend:

You don't know me, but I'm a taxpayer here in Prince Georges County like you are.

I never thought I would be writing you a letter, especially since we don't know each other.

But I want to get something off my chest. I'm fed up with big spending politicians. I'm not just talking about Gladys Spellman. I'm talking about all big spenders in Congress, regardless of which party they belong to.

As a ntter of fact, I'm a Democrat like Mrs. Spellman, but I vote for the individlal and not the party label. And I'm tired of big spenders like Mrs. Spellman and her colleagues who vote for more and more of our tax dollars to be spent on one program after another.

Let me explain why I feel this way. There's a tax fact sheet put out by the Tax Foundation and it's shocking.

Did you know that if you and I had to pay all our taxes at once--Federal, state, and local, before we took a dime home, it Ywould have taken every dollar we earned from January Ist of this year until almost May 1st before we had that first dime to spend.

Just think. Not a penny for us to spend on our families for food, for rent, for clothes, not a cent until the government got its share:

The government is smart. It takes a little bit each time from our paychecks. So you hardly notice.

Well, I'm fed up with higher taxes. The more I thought about it, the madder I got. But what could I do, just an average citizen.

I wanted to let the world know I was fed up with the big spending politicians.

I found out there are others who are just as concerned as I am, and as you probably are. They're a group of citizens concerned about politicians, regardless of party, who raise their salaries and who vote for big spending programs with our money.

They asked me to write and tell you how I felt and what I plan to do about it and see if you wouldn't do the same thing I'm going to do.

Let's vote some of these big spenders out of office, starting with Mrs. Spellman.

I've looked at her voting record. It's almost as shocking as the tax fact sheet.

Did you know that she is one of the guiltiest big spenders in the entire Congress?

It's hard to believe, but she has voted to spend billions and billions of

This com.uniicat ion is not authorized or paid for by any candidate. Pa4: Tor by the National Conservative Political Action Comrnittee, Charles Black, Chairman. dollars, including another pay raise for her and her Congressional cronies.

The $42,500 a year wasn't enough, I guess. They' re now getting something like $44,600 a year. On top of that, they voted themselves an autcmatic raise to match the cost of living each year in the future.

Oh yes, the pay raise hrs. Spellman voted for only passed by one vote. If she had voted against it, it would have been defeated.

That's not all. We might even call her the $73 BILLION DOLLAR WOMAN. That's how much extra she voted to spend over and above the budget.

It's the same old big spending philosophy of tax and tax and spend and spend the people's money that we see year after year.

It isn't as if there's no place to cut waste. Listen to where some of your tax money goes:

* $121,000 to find out why some people say 'ain't.' * $29,324 for a study of the mating calls of the Central American toad. * $159,000 to teach mothers how to play with their babies. * $375,000 for a study of the frisbee. * $200 millions to perform research and give grants to professors. For example, there are 23 biographies of Isaac Newton in the Library of Congress, yet the Federal government wants to spend $10,000 for another one.

Who paid for these silly projects? You and me, that's who. Where does it end? What can you and I do about it?

I've also looked at the record of Krs. Spellman's opponent, Mr. John Burcham. I'm not telling you all this at Mr. Burchamr's request. He doesn't know I 'm writing you. In fact, I've never even met Mr. Burcham.

But he has pledged to work to get the government out of our pocketbooks.

I like that. Scmeone who is trying to help me for a change, you and me.

So here's what I'm going to do and I hope you will, too. Let's start letting the big spenders, regardless of party, know how we feel. I'm going to vote Tuesday, rain or shine, and I'm voting for Mr. Burcham for Congress. I hope you will, too. And ask a friend or two to do the same. They'll respect your opinion.

Now I know all the papers and TV broadcasters are interested in the Presidential race. So am I and I suppose you are too. But I'm not asking you who you're for in that contest.

I am sincerely interested, however, in teaching some of these big spenders in Congress that we're sick and tired of their irresponsible votes. If we show them right here, near the Nation's Capital where they work, that one of their big spending colleagues can be defeated, maybe the rest of them will get the message and cut down on their wild spending habits.

Since ely,

J.hn . tock, Jr.

P. S. You might even want to call Mr. cham's campaign headquarters and volunteer to help out on election day.- Thank you. h.

-1 9

U IL ; I4 U -j , 4 - , . -K>.-.

L V ziW~ c '-.i ....

-- M11 omc!~LFiL~I SCRIPT

CHANGED

The big boys in the back rooms of Congress thought the people wouldn't remember. So they decided to give themselves a nice fat pay raise. The vote was very close and then it was Gladys Spellman's turn. (SOUND EFFEC) Mrs. Spellman didn't think the people of Prince Georges County would remember so she cast the self-serving vote that gave her and her cronies in Congress a nice fat pay raise jk&jjc- passed by one vote. John Burcham is against the congressional pay raise. John Burcham for Congress.

I Aft

ORIGINAL

So she cast the decided vote that gave her and her cronies in Congress a nice fat pay raise.

VTDFQ TT CLALW7R: This cormunication n~t authorizeC or pai6 for

Political ... am',a icate. Pai(, for the Nationai Conservative

SctL:)n 71. <:i :v e , Charles Black, Chairran.

t~!1~.L'~i ...... I IN, CONG fihtS John Brcham wAill fight.itat~l

S S A S

I a I Ua. - V w- q .. a . ~ * i f.... communication was not authorized by any candidate. raica ior This Political Action and authorized by the National Conservative Committee, Charles R. Black, Chairman. 1911 North Fort Myer Drive, Arlington,Va. 22209r It CUPSEL Congress to elim- against an amendment requiring Spelman voted balance the budget. "r inate deficit spending and to Spellman voted for more inflation. debt limit to an astronomical Spellman voted to raise the federal billion. S$595 more inflations "e .. Spellman9bpellman votedvoteorvoe forO r ord $73 billion budget deficit in 1976.. .the

~ largest in American history. Spellman voted formore inflation,. incally in- Spellman cast a key vote that gave her and thather cronies automati a nice fat pay raise... a pay raise " Congress she causes. creases as a result of the inflation . gave Spellman 22% in their ratings. _.The National Taxpayers Union ss. the biggest spenders in Congre * They listed her as one of The facts speak for themselves: m-, ni AnV_ .PFLLMAN IS ONt: r I fl; BIGGEST SPEN DING LIBERALS I .. . 0 0 AV (7 >o

STATE OF VIRGINIA ) COUNTY OF FAIRFAX ) to-wit:

HANNS R. CRANE, being duly sworn, on the W Aday of December, 1976, deposes and says:

1. That he resides at 511 Kramer Drive, Vienna,

Virginia; that he is twenty (20) years of age; and, that he is a student at Northwestern University.

2. That, on or about the 18th day of June, 1976, he was employed by the National Conservative Political Action Committee at the rate of $700.00 per month and detailed to work for the Burcham for Congress Comnittee, to perform such tasks as might be assigned by the Burcham for Congress Committee.

3. That, during the period from the 18th day of June, 1976, through approximately the 13th day of August, 1976, he worked in the offices of the Burcham for Congress Committee; and, that, during that period he prepared an issue paper on Energy (a copy of which dated June 27, 1976, is annexed hereto) and an issue paper on Crime (a copy of which dated July 4, 1976, is annexed hereto); and, that he assisted with the work being done on precinct organization.

Page 1 of 3 0

4. That, at no time, did he participate in any discussions or meetings relating to campaign plans or strategy, nor did he read material, or otherwise acquire information, relative to the plans, projects or needs of Mr. Burcham or of the Burcham for Congress Committee otherwise than as may be stated in paragraph 3 hereof.

5. That he did not conduct, nor participate in research on the voting record or position of Gladys Spellman on economic issues.

6. That neither Mr. Burcham, nor anyone associated or connected with the Burcham for Congress Committee, ever discussed with him, proposed or suggested the making of independent expenditures.

7. That, during the period from approximately the 14th day of August, 1976, through the 25th day of August, 1976, he worked in the offices of the National Conservative Political Action Committee, at the rate of $2.50 per hour, opening mail, typing envelopes and stamping envelopes.

8. That no one associated with the National Con- servative Political Action Committee asked or inquired of him of the plans, projects or needs of Mr. Burcham or of the Burcham. for Congress Committee; nor did anyone associated with the National Conservative Political Action Committee ever discuss with him, propose or suggest the making~ of

Page 2 of 3 independent expenditures.

9. That he did not suggest, participate in the preparation of, or otherwise discuss or have any involvement in or knowledge of the preparation of the communications constituting independent expenditures by the National Con- servative Political Action Committee.

10. That subsequent to the time he departed from the National Conservative Political Action Committee (on or about August 25, 1976), he had no communication with anyone associated with the National Conservative Political Action Committee (other than possibly to receive his final paycheck) until he was advised by telephone by Mr. (John T.) Terry Dolan on or about November 29, 1976, of the receipt from the Federal Election Commission of a complaint by Gladys Spellman.

11. That he makes this statement voluntarily and of his own free will, with the knowledge that it shall be submitted to the Federal Election Commission as evidence in an investigation.

1-ANNS R. CRANE

Sworn to and subscribed before me, a Notary Public in and for the State and County first above written, on the SOL day of December, 1976. My commission expires: es 6810'

Notary Public

Page 3 of 3 July 4, 1976 0* H.R. Crane

POS ITION PAPER_: CRIM E

I, PURPOSE: Call for reform of the current criminal justice system in the United States to stop our present "revolving door" policy, which fails to protect the innocent victims of crime, and has abandoned the very con- cept of punishing the guilty criminals. Initiate legislation that will remove criminal elements from society while operating within the constraints of our sacred constitutional guarantees of privacy and due process under law.

"The fundamental responsibility of government is to protect the lives and property of its citizens. I believe the thrust of justice must be to protect the law abiding citizen against the criminal."

"We must restore the teaching of basic American values in our educational system as the first step in any long-range program of rehabilitation. Rehabilitation means to restore to a condition of honor and productive activity in society.. We can hardly expect rehabilitation programs to succeed if the criminals have never been rehabilitated to a construct- ive role in society to begin with. This is the job of the home and of formal education."

I. SPECIFIC POLICY STEPS TO MEET OUR CRIME PROBLEM:

1. Reform our educational and penal systems to correct the failure of our present policies of rehabilitation and punishment.

2. Support continuance of the Law Enforcement Assistance Admin- istration (LEAA) and its grants to states, cities and towns to strengthen local law enforcement.

3. Support court system reform to increase efficieicy, eliminate excessive case loads, reverse the present practice of "turnstile"

justice, and keep the criminal off the streets. '

(1) W (2) ,

4. Support redoubled efforts against hard drug traffic; arrest, prosecute and convict pushers--especially those that prey on young boys and girls.

5. Propose Congress enact mandatory minimum sentences for persons convicted of federal crimes involving: violence, the use of fire arms or other'weapons in committing a crime, rape, serious physical injury to the victim, trafficking in hard drugs, and habitual offenders.

6. Restore the dealth penalty to prevent crimes.

7. Abolish concurrent sentencing that allows criminals to commit their second offence "for free".

Ill. STATISTICS:

NATIONWIDE CRIME RATE

Increase between the years 1969-1974

Violent crime ...... 47% Murder ...... 40% Aggravated Assault ...... 47% Forceable Rape...... 49% Robbery ...... 48% Burglary ...... 5 3*

In short our crime rate is increasing eight times as fast as the population gro--th. W (3) •

TwO OUT OF THREE FELONS GO FREE

An Institute for Law and Social Research (INSLAW) study found that of all felony arrests sent to the prosecutor in 1974:

Cases dismissed or dropped ...... 64% Solved by pleas of guilty ...... 26% Tried ...... 10% At Trial Acqui ted ...... 3% Convicted ...... 7%

Thus: Only 33% of all those arrested were convicted or pleaded guilty, while 67% went free.

CONVICTION RATES OF [MIAJOR CRI-MES:

The same (iNSLAW) study found that of those arrested for specific felonies, the following percent went free.

Murder ...... 50% Rape ...... 71% Aggravated Assault ...... 81% Robbery and Armed Robbery ...... 66% Burglary ...... 53,

This low conviction rate is particularly serious because nationwide statistics show that police are able to make arrests in only one of every five serious crimes reported. (4)

CRIMES COMMITTED ON CONlDITIONAL RELEASE

Of those arrested for crimes, the following proportions were free on some form of conditional release--bail, probation or parole:

Murder ...... 28 Rape ...... 19% Robbery ...... 31% Burglary ...... 32% Assault ...... 11% Total of all felonies 26%

It is thus a small core of hardened criminals that commits a major portion of all crime, and yet is released to prowl the streets.

RESULTS OF EXCESSIVE JUDICIAL LENIENCY

Of major crimes, 65' were committed by repeaters, and 51% of these were recipients of leniency.

Six out of ten persons who are arrested for felonies in Washington D.C. have prior criminal records.

Even among those arrested for such serious crimes as murder, robbery and rape, about one in three will be released without posting a money bond.

IV. BURCHAM QUOTES:

"A system that allc-.'s 64% of all felons in Washington D.C. to go free, 97. of felons in New York, and 93. in Boston, not only is severely defective, but is a dancer to the citizenry at large. We need to reform the penal system to put the offender behind bars not on the street." i .... 4 (5) 0

"We must work for more stringent enforcement of our present courts and laws. We must increase the size and number of our crim- judges. And we must initiate programs designed to remove of our inal elements from society while protecting the rights citizens."

"Effective crime prevention requires, first of ail, personal we can action from each of us to strengthen commiunity ties so the enforce community decisions to establish in our schools culture moral arnd ethical standards they must teach for our that to survive. Secondly, we must use our votes to ensure power of our law enforcement system is based on the deterrent be safe swift and sure punishment. Only then will our streets aga in." ~3Tpf~>cr~r7~rAArJ V i/I

Lir (~~I

John Durcham:

1. Use the death penalty to prevent crimes. 2. Reform the penal system to put the offender behind bars not on the street. 3. Abolish concurrent sentencing that allows criminals to commit their second offence for free. He h& voted. Will you? 4. Propose Congress enact mandatory minimum sentences for persons convicted of all federal crimes involving: Spellman's Record: violence, rape, tratrIcKIng in hard drugs, and habitual offenders. 1. No coi-nent on the advisability of 4 the death penalty. C. 2. Voted to rmake parole a "right" PERCENT GE OF CRIMES CO MITTED BY rather than a privelege. CRIMINA -S ON CONDITIONAL RE EASE 3. Voted to qualify any prisoner for parole after ten years regardless of Statistic:s for the years 1969-1974. 4 the crirre. *...... 28% 2 4. Introduced bills to establish man- Murder. datory sentences only for those who used Rape...... 19% a firearm in a crime; thus ignoring (...... 31% 50% of the crime in which a firearm was Robber not used. Burglanry...... 32% t...... 11% Assaul 1

NATIONWIDE CRIME RATE

Increase between the years 1969-1974. "THE F U NDAMENTAL RESPONSIBILITY OF Violent crime ...... 4E7R= -GOVERNM ENT IS TO PROTECT THE LIVES Murder ...... 40%A -AND D PROP PERTY OF ITS CITIZENS. I Aggravated Assault ...... 4...... BELIEVE THE THRUST OF JUSTICE MUST- Forceable Rape ...... 49% -BE TO PROTECT THE LAW ABIDING CIT- 4Z E- Robbery ...... a ..IZEN AGAINST THE CRIMINAL. Burglary ...... 5 3% -4...•t-. .ammsa~u~~ininswm~w~ua~m~u#n'e

ov embe r 4

YOUR hIONEY'S WORTH IN CONGRESS

Paid for by the Burcharn for Co.;'rcss Committee, Harry F. Strain, Tre .oecr. June 27, 1976 H.R. Crane

POSITION PAPER: EIERGY

I, PURPOSE: Call for a clear policy to rely on free market forces to stimulate conservation and increase domestic source availability, with a well- defined governmental program to accomplish this in balance with other important economic, social and environmental objectives.

"Solutions to our energy problems will not be easy or rapid, and must be accomplished within the restraints of all our other economic, social and environmental goals. With this in mind our nation must develop alternative energy resources, while Congress provides incentives to develop more American- based oil and natural gas. The key to our future lies in the wise use and development of energy; yet Americans themselves must learn to conserve."

II, SPECIFIC POLICY STEPS TO MEET OUR ENERGY CRISIS:

f. Correct distortions in energy pricing; stimulate domestic production; and encourage conservation. Natural gas prices at the well- head should be deregulated and oil prices decontrolled. If artifi- cial price distortions are eliminated, our energy supply/demand balance will i,.pro-e.

2. Give greater emphasis to energy conservation by individuals. All possible encouraGement ant s..pport should be given tc individual users to participate in energy conservation.

3. Undertake research and development to improve efficiency in the use of energy and to reduce energy requirements.

4. Establish a flexible national energy policy that recognizes the long-term nature of the necessary technological develop'ments to obtain energy Independence.

(1) ,, IP

III IIIf.! + L ' (2)

5. Develop alternative energy forms, in-particular, solar energy and fusion, which seem to have enormous long-term potential.

6. Expand our nuclear energy supply, Including effective siting and licensing procedures for new plants.

7. Encourage development of a synthetic fuel industry, particularly by Improving technology for combustion or conversion of coal. Estab- lish air and water standards that preserve the integrity of the en- vironment, but do not unrealistically restrict the use of coal.

8. Remove land use constraints that repress the development of energy supplies. Federal lands should be opened to the exploration MOM and development of domestic resources, yet the criteria for opening them should include appropiate environmental safeguards. Excessive withdrawals of public lands from productive use mean less energy for all.

7- 9. Open frontier areas that contain critically needed domestic oil and gas supplies. These should be opened with due regard to the en- vironment. Unreasonable barriers must not be placed in the way of oil and gas develop-nent on the outer Continental Shelf.

10. Critically evaluate new utility rate structures that unfairly IN. discrimninate against industrial users of electricty or natural gas, with primary concern for their potential impact on erployment and for the need to use free market forces to stimulate conservation in all areas.

Il, BURCHAM CWTES

"Our energy objectives can best be obtained by maximum rel-

iance on conpetitive free market forces. The role of government is to act as a catalyst and provide a climate to achieve

II (3)

the required goals. Elements of this climate Include a well- Informed public, a clear definition of national energy policies, a commitment to those policies, a stable economy and the pro- motion of a steady flow of energy at stable prices in inter- national commerce.##

"Development of domestic sources of energy must be accelerated. Over time, the mix of energy sources will change. To meet this challenge, we must develop new technologies and new ways to meet our future demands."

"Appropiate energy conservation measures can reduce the rate of growth in energy consumption; yet it is recognized that some growth is not only desirable but also necessary if we are to achieve all of our other social and economic goals."

Mm Natiotal Conservat~e c 81976 Political Action Committee 1500 wilson blvd. suite 513 arlington, va. 22209 (703) 522-2800

December 6, 1976

Federal Election Commission 1325 K Street, NW Washington, D. C. 20464

RE: RAD#0170RJE

- Dear Sirs: "* In reply to your letter dated November 23, 1976, concerning entries indicating that we may have made contributions which exceed the federal limits, please note from the following that this is not the case.

Edwards for Congress 3/3/76 $1,000.00 primary t Iit V1 7/22/76 $2,000.00 10/8/76 $2,000.00 it $5,000.00 primary total

Edwards for Congress 10/8/76 $1,000.00 general of It II 10/15/76 $1,000.00 " 10/18/76 $2,000.00 it if It 10/22/76 $ 500.00 it It IT 10/25/76 $ 350.00 II It II 11/12/76 $ 133.00 $4,983.00 general total

As you will note from the debt schedules (owed to NCPAC), both the $1,000.00 on 3/3/76 and the $2,000.00 on 7/22/76 were originally loans which were later con- verted to contributions.

In regard to your apparent question on the debt schedule (owed by NCPAC) entry dated 7/13/76 to

I A , Federal Election Commission PAGE TWO

DirAction Services, this was a $2,000.00 debt in- curred in behalf of Edwards for a survey. This debt was paid to DirAction Services on 10/8/76 and was allocated at that time. These two entries represent the same sum. The above information should clarify all questions in regard to this matter and serve to confirm that we are in compliance with the.Feder&L_ ign Act, as amended.

Co ially'

ogerJ n Trea r NCP

RJS/adw

e * ~ I -woo

SEDAM. HERGE & SHREVES ATTORNEYS AT LAW 7600 OLD SPRINGHOUSE ROAD MCLEAN. VIRGINIA 22101

TOO Federal Election Commission 1325 K Street, N. W. Washington, D. C. 20463

FIRST CLASS MAIL -FEDERAL ELECTION COMMISSION 1325 K STREET N.W WASHINGTON.D.C. 20463

CERTIFIED MAIL RETURN RECEIPT REQUESTED

Mr. William E. Remsburg 16103 Audubon Lane Belair, Maryland

Re: MUR 299 (76)

Dear Mr. Remsburg: This letter is to confirm a telephone conversation which you had with a member of our staff on December 6, 1976, in which you notified us that you had received our notification letter of November 22, 1976. Your response to that letter should be submitted within 15 days of actual receipt, which we assume was Monday, December 6, 1976.

Sin rely yours,

William C. Oldaker Assistant General Counsel V- Z-n, -4 bZ

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CERTIFIED MAIL RETURN RECEIPT REQUESTED

William Remsburg, Treasurer Burcham for Congress Committee 5809 Landover Road Cheverly, MD 20785 Re: MUR 299 (76)B

' Dear Mr. Remsburg: This letter is to notify you that the Federal Election sof Commission has received a complaint against the Burcham for Congress Committee which alleges a violation of the Federal Election Campaign Act of 1971, as amended (the Act). We have numbered this matter MUR 299 (76)B. A copy of the - complaint is enclosed. The Commission has reason to believe that the matter alleged therein statesa violation of 2 U.S.C. §434(b) (2), in that certain expenditures reported as . "independent" by the National Conservative Political Action Committee may not have been independent but rather contributions in-kind to John Burcham. Failure to report these payments as contributions would be a violation of 2 U.S.C. §434(b) (2).

NUnder the Act, you have an opportunity to demonstrate that no action should be taken against you. Please submit any factual or legal materials which you believe are relevant to the Commission's analysis of this matter. In addition, we would appreciate your Committee's response to the attached questions. Where appropriate, statements should be submitted under oath. The Commission is under a duty to investigate this matter expeditiously; therefore, your response should be submitted within 15 days after receipt of this notification. You will be sent copies or summaries of all correspondence received by the Commission from the complainant concerning this matter. If you have any questions, please contact David R. Spiegel (telephone no. 202/382-4055), the attorney assigned to this case. This matter will remain confidential in accordance with 2 U.S.C. S437g(a) (3) unless you notify the Commission in writing that you wish the investigation to be made public. Sincerely yours,

John G. Murphy, Jr. General Counsel

Enclosure

0 "k

r~~t ~I;. L ~. If ~I * S 0

1. Identify those persons at the Burcham for Congress Camttee involved in the process of planning and authorizing expenditures from the Cuamittee' s accounts. Also identify those persons responsible for setting general policy regarding the cmittee's expenditures.

2. National Conservative Political Action Ccmmittee has reported the following "unauthorized, independent expenditures" in support of John Burcham:

Oct. 18,1976 $ 185.85 Payment to ETA-TV $ 4152.25 Payment to WIOP-TV Oct. 19,1976 T Oct. 19,1976 $ 1134.75 Payment to WI G-TV Oct. 20,1976 $10248.00 Payment to Kal ,Merrick & Salan Adver- Oct. 20,1976 $ 244.34 tising Oct. 25,1976 $ 7012.50 Payment to WKLI-TV Oct. 26,1976 $ 350.00 Payment to Gary Sukow

With respect to the above-mentioned payments, please provide the following information: a) did the making of any of these expenditures involve contact with any Burcham for Congress Camttee personnel? If so, identify the personnel, and explain the nature of the contacts. b) did any Burcham for Congress Comittee personnel have any responsibility for the contents of any advertisements for which these expenditures were made? If so, please identify the personnel, and explain the nature of the responsibilities.

3. NCPAC has reported the following transactions relating to your ccmttee: July 12, 1976 $700.00 to Hans Crane for "consultant fee, working for Burcham for Congress" August 13, 1976 $350.00 to Hans Crane for "research, fieldwor C0, consultant fee - Burcham for Congress - general contribution-in-kind."

October 4, 1976 $200.00 loan for downpayment on telephone wl 0 0

-2-

With respect to these payments, please provide the following information: a) Has Burcham for Congress Comittee reported the July 12, 1976, contribution

to the Federal Election Cammission? If so, identify the report on which

the contribution was included. If not, please explain. b) provide a detailed description of the purpose of these payments; c) identify the National Conservative Political Action Committee personnel

with whon your cammittee dealt concerning these contributions; d) identify the Burcharn for Congress Committee personnel who had contact

with the National Conservative Political Action Ocrmittee personnel concerning these contributions; e) explain the nature of any contacts between National Conservative

Political Action Comittee personnel and Burchan for Congress Ccmmittee

personnel, as noted in c and d above.

...... ii FEDERAL ELECTION COMMISSION

1325 K STREET N.W 4 WASHING1ON.D.C. 20463

CERTIFIED MAIL NOV 2 2q RETURN RECEIPT REQUESTED

Mi. John Dolan National Conservative Political Action Committee 1911 N. Fort Myer Drive Suite 906 Arlington, VA 22209

Re: MUR 299 (76)A

Dear Mr. Dolan:

This letter is to notify you that the Federal Election Commission has received a complaint against your committee which alleges certain violations of the Federal Election Campaign Act of 1971, as amended (the Act). We have numbered this matter MUR 299 (76)A. A copy of the complaint is enclosed. The Commission has reason to believe that the matters alleged therein state a violation of 2 U.S.C. §434(b) and 2 U.S.C. §44la(a) (2) (A) in that expenditures 0 reported as "independent" on reports filed on behalf of the National Conservative Political Action Committee may not N have been independent. If those expenditures were in fact contributions, they may exceed the legal limit on contribu- N', tions under 2 U.S.C. §441a(a) (2) (A).

Under the Act, you have an opportunity to demonstrate that no action should be taken against you. Please submit any factual or legal materials which you believe are relevant to the Commission's analysis of this matter. In addition, we would appreciate your Committee's response to the attached questions. Where appropriate, statements should be submitted under oath.

The Commission is under a duty to investigate this matter expeditiously; therefore, your response should be sumbitted within 15 days after receipt of this notification. If you have any questions, please contact David R. Spiegel, telephone no. 202/382-4055, the attorney assigned to this case. 1 0

This matter will remain confidential in accordance with 2 U.S.C. S437g(a) (3) unless you notify the Commission in writing that you wish the investigation to be made public. Sincerely yours,

John G. Murphy, Jr. General Counsel

Enclosure 1; Identify those persons at NCPAC involved in the process of planning and authorizing

expenditures from NCPAC's accounts. Also identify those perons

responsible for setting general policy regarding NCPAC expenditures.

2. NCPAC has reported the following "u-authorized, independent expenditures"

in support of John Burcham:

Oct. 18, 1976 $ 185.85 Oct. 19, 1976 $4152.25 Oct. 19, 1976 $1134.75 Oct. 20, 1976 $10248.00 Oct. 20, 1976 $ 244.34 Oct. 25, 1976 $7012.50 Oct. 26, 1976 $ 350.00

With respect to the above-Trentioned expenditures, please provide the folo,.dng infornation:

a) a detailed description of tLe type of expnditure a "de;

b) a copy of any printed ;atter, e.g. newspaper advertisements, texts of broadcasted aterial;

c) RdJDtificat-ion of all NCAC a...onnl .involved in the pla ning arid authorizing of tulse e7xi-er.3itures;

d) pro-c-ure by vihich the contents of any advertismcents were deicieumined; IN- e) did any of these exoc-di tures or the content of any advertis Tients for which these expen-dtures were made involve contact with John Burchamn or any of his agents? If so, list the expenditures and describe the contact.

3. NCPAC has reported nmking payments to Hans Crane on July 12, 1976,

and August 13, 1976. Please describe NCPAC's relationship with

Hans Crane, e.g., is he a regular anployee, how did NCPAC arrange

to Iay for his consulting the Burcham, for Congress Cormittee?

C V~ CU"U rrl; , The hilowlg evis vquftedm (Cbwkc0.f). w wh admwd w .- ~ tohm, *At, a addies at deaiwt. $ o3 R2SVMCTW DELIVRY. Sbswto i bcand daw deiwfed...-. NO O USWhICTRD DELIVERY. Sbow ta whsm, date, a"d adm of dsiv*" S#.

ASYOIR W TO:

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above.

...... BEFORE THE FEDERAL ELECTION COMMISSION

In the Matter of ) ) MUR 299 (76) National Conservative Political ) Action Committee (NCPAC) ) CERTIFICATION

I, Marjorie W. Emmons, Secretary to the Federal Election Commission, do hereby certify that on November 19, 1976, the Commission adopted the recommendation of the General Counsel to find Reason to Believe that violations of 2 U.S.C. §§434(b) and

441a(a)(2)(A) had been committed in the above-captioned matter.

orie W. Emmons Sec y to the Commission C' November 19, 1976 MEMORANDUM FOR: BILL OLDAKER FROM: MARJORIE EMMONS RE: MUR 307 (76), UR 299 6), and MUR 302 (76)

The above mentioned MURS were transmitted to the Commissioners on November 18, 1976, at 10:00 a.m. As of 2:00 p.m. on November 19, 1976, no objections had been received on these MURs.

L - *, .y NO. MUR 299A(76)

DATE ANQ TIME OF TRANSMITTAL: _ _-___ ito AAA-jJ."REC'D: Oct. 25, 1976

FEDERAL ELECTION COMMISSION Washington, D. C.

Complainant's Name: Citizens for Spellman

Respondent's Name: National Conservative Political Action Committee (NCPAC)

Relevant Statute: 2 U.S.C. §434(b); 2 U.S.C. §44la(a) (2) (A)

ZInternal Reports Checked: NCPAC; Burcham for Congress Committee None Vederal Agencies Checked:

SUMM1R1AY OF ALLEGAT ION

1. Report'in_ v 1ol_ a (b L___NCPAC-j,2[CL_. made expendi tur..

which it reported as "independent" but which wereag g _ ribuions

in-kind to John Burcham.

2. Contribution limits (2 U.S.C. §441a(a)(2)(A)): NCPAC went over

its $5000 limit with regard to contributions to John Burcham, Federal

candidate for Maryland's 5th Congressional District.

PRELIMINARY LEGAL ANALYSIS Allegation #1: NCPAC, a multi-candidate committee, has reported contri-

butions to John Burcham totalling $4,250.00 over the period May, 1976,

to October, 1976. (See Attachment 1). Burcham's committee has

reported contributions from NCPAC totalling $4,550.00 over that/period.

(See Attachment 2). NCPAC later reported independent expenditures

of $23,327.69 made in October, 1976, for advertisements in support

(Continued on next page) RECO',i,'A i%'DAT I ON Reason to believe violations of 2 U.S.C. §§434(b) and 441a(a) (2) (A) have

occurred. A proposed notification, including specific questiots is attached (See Attachment 4). w L_-w w

-2-4

%PREtIMINARY LEGAL ANALYSIS CONTINUED

of Burcham. (See Attachment 3). Complainant alleges these expenditures are not, in fact, independent for the following reasons: Two of NCPAC's reported contributions to Burcham were payments in July and August, 1976, to Hans Crane for consultant fees. (See Attachment 1, parts c & d). NCPAC also loaned the Burcham committee $200 on October 5, 1976, to pay a telephone deposit, according to Burcham reports. It appears that these payments show cooperation or consultation with the candidate or his committee within the meaning of proposed regulation 109.1(b) (4)( The issue, then, is whether such cooperation taints ater expenditures for media advertisements which NCPAC reported as "independent." This latter contention requires further analysis, e.g., a study of the advertisements themselves, since their content may suggest consultation or cooperation with the Burcham campaign organization. (Complainant notes that these advertisements discussed Burcham's stands on the issues, and this fact may show some consultation with the candidate). Allegation #2: If NCPAC's "independent expenditures" for advertisements, amounting to $23,327.69 are actually contributions in-kind as contended in allegation 1, NCPAC exceeded the contri-

bution limits of 2 U.S.C. §441a(a) (2)(A) . Amman 1 - NCPAC cotributions to Burchamn (total: $4250.00)

'.1-. 4iA:[ Itemized Expenditures Pae 1 ,ot -4_f or Scitecule B. NUMBER 23 Januavy 1976 Campaig~lndraising, Loans, and Transf* LINE Federal Election Commission lUse separate schedule(s) for 1325 K Street. N.W. for Lines 20, 21, 22, and/or 23 of FEC Form 3 each Washengtpn, .D.C. 10463 numbered line). (wo Instructions on back) NameNational of Candidateor Conservative Committee in full Political Action Committee

Full Name, mailing address and ZIP code. Purpose of Expenditure Oate (month, Amount of each expeldi. Walker for Congress Committee Contribution day, year) turethisperiod 1111 Park City Center 4/15/76 $100.00 Lancaster, PA 17601

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month, Amount of each expendi. Burger for U.S. Senate Contribution day. yer) ture this period 3011 ist Ave. N. 4/29/76 $4,000.00 Billings, MT 59101

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month, Amount of each expendi- o Marsh for Congress Committee Contribution day, year) ture this period P.O. Box 1286 5/3/76 $500.00 15Muncie, Indiana 47305

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month, Amount of each expendi. Buel. for a Better Congress Contribution day. year) ture this period Committee 5/3/76 $500.00 P.O. Box 2223 Indianapolis, IN 46206 Full Name. railing address and ZIP code Purpose of Expenditure Date (month, Amount of each expendi- McCollister for Senate Committee Contribution day, year) ture this period P.O. Eox 1976 5/11/76 $1,000.00 1 Omaha, N7E 68101

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month, Amount of each expendi- Lawrence for U.S. Congress Contribution dy,year) turethisperiod 1542 Anna Lane 5/13/76 $1,000.00 Louisville, KY 40216

Full Name, rmiling address and ZIP code Purpose of Expenditure Date (month, Amount of each expendi- day, Burcham for Congress Committee Contribution 5/17/76year) ture this period 5809 Landover $1,000.00 Cheverly, MD 20785

Full Name, roiling address and 7 1P code Purpose of Expenditure Date (month, Amount of eacth expendi- day. year) ture this Fulk for Congress Contribution period P.O. Box 145 5/20/76 $1,000.00 104 E. W;ashington Clarinda, IA 51623

Subtotal of expeniditures this piioe (opt ,or-Al ...... _......

Total thi; period (last page this line numbor only) ...... (.-. "... $ %_ ...... '-*z ...... 0 .. Page P41*4a. 1.*nmized Expenditures eP. 4_ o, 4 for and Transfer LINE NUMBER 23 .cke1ule B Campaign Fundraising, Loans, (Use separate schedule97 each mderyaElection -for Commission numbered line). 3 KStreet,.N.w. for Lines 20, 21, 22, and/or 23 of FEC Form 3 ashngton, D.C. 20463 (see Instructions on back)

Name of Candidate or Committee in full National Conservative Political Action Committee tof each exrsmndt...... r.,. d--.I Am,-.-unt WWlq11~1V 4 0 ture Full Name. mailing address and ZIP code PurposeContr cxpenopturt ibutionib day. year) this period Burcham for Congress 6/23/76 $2,000.00 5809 Landover Cheverly, MD 20785

Date (month. Amount of each expend.- Purpose of Expenditure Date (m.onth. Amountthis ofperiod each expendi- address and ZIP code day. veer) ture Full Name, mailing Advanced Postage Diversified Mail Marketing for 6/23/76 $2,000.00 Pike for Burger 7777 Leesburg Senate Falls Church, VA 22043 U.S.

Purpose of Expenditure Date (month. Amount of each expendi- period Full Name. mailing address and ZIP code day, year) Iure this for Congress Committee Glen Jones Contribution 4/6/76 $5,000.00 16171 New Boston Rd. Texarkana, -TX 75501

I I Date (month, I Amount of each expendi- Purpose of Expenditure Date (mointh, tureA~mount this periodof each expendi- Full Name, mailing address and ZIP code day, year) Diversified Mailing Services onr 1ut.w" t.- 1 4/1/76 $2,000.00 7777 Leesburg Pike Whitcomb Falls Church, VA 22043 1035 N. Illinois S Indianapolis,AO9 OAiN IDt (month, Amount of each expendi- Purpose of Expenditure Date (month, ture this period Full Name, mailing address and ZIP code day, year) 1 Contribution for Diversified Mailing Services 7777 Leesburg Pike Dornan for Congres: 5/6/76 $5.000.00 Falls Church, VA 22043

Amount of each expendi- of Expenditure Date (month, Purpose period Full Name, mailing address and ZIP code Contribution for day, year) ture this Robert L. Shortley Burger for U.S. 310 N. Pitt St. Senate 6/14/76 $1,000.00 Alexandria, VA 22314 3011 1st Ave. N Billings, MT 5910 Date (month, Amount of each expendi- Purpose of Expenditure year) ture this period Full Name, mailing address and ZIP code day, Donatelli $1,000.00 Frank Contribution for 6/14/76 Americans for Freedom Young Burger for U.S. So iate Woodland Road 3011 !st Ave. N Sterling, VA 22170 Bil in2gil4TM5910L Amount of each expendi- Date (m :h, Purpose oh Expenditure ture this period addr ess and ZIP code Full Name. miling Contribution for day, year) Jelks Cabaniss $1,000.00 Burger for U.S. 6/14/76 Prince St. 804 Senate Alexandria, VA 22314 3011 1st Ave. N. T Bjillinq, ___M 59101

Subtotal of expunditures this pr[qe (o, t onal) ...... $ 50, 600.00 ...... Total this p.rid (last pdge this line numbur only) ...... Page Page romfb6 1itemized Expenditures P IL o, l. _,o, Schedule B Campaign indraising, Loans, and Transfol LINE NUMBER _.20 Januar'y 1976 1 federalEa o an /o ofio Formrr (USe Separate schedulefs) lot eachi 132 t ,ree,. NW. ,, for Lines 20, 21 22 and/or 23 of FEC Form 3 ,,gb e " " )'ne). Washington, D.C. 20663 (ee Instructions on back)

Name of Ca ndidate or Committee in full o National Conservative Political Action Committee D Amount of each expRnd Purpose of Expenditure Date firrOhth. Full Name. mailing address and ZIP code day. year) ture this period William Norton consultant fee 163 Merrimac Trail #4 working for Trible 7/12/76 700.00 Williamsburg, VA 23185 for Congress

tmonth. Amount of each expend Purpose of Expenditure Date (month. Full Name, mailing address and ZIP code day. vent) ture this per iod Consultant fee Hans Crane working for Burcha n 7/12/76 700.00 511 Kramer Drive for Congress Vienna, VA 22180 * --C Purpose of Expenditure Date (month. Amount of each expend Full Name. mailing address and ZIP code day, year) lure this period William Norton Consultant fee wor C ing for Trible for 7/30/76 700.00 Congress C Date (month, Amount of each expenc Name. marling addfess and ZIP code Purpose of Expenditure Li Full Survey for Wallop day. year) ture this period Decision Making Information for Senate 7/21/76 2000.00 C% 2700 North Main St. Suite 800 Santa Ana, CA 92701

Expenditure Date (month. Amount ol each. expent Full Name. mailing address and ZIP code Purpose of day. year) lure this period

Mark Young consultant fee 7/7/76 175.00

Date (month, Amount of each expen, Full Name. mailing address and ZIP code Purpose of Expenditure day. year) lure this period

Lease Car of America, Inc. Leased cars for 7/7/76 353.00 Trobridge for Congress

Date (month. Amount of Each exper Full Name. rmilin address and ZIP code Purpose of Expenditure day. year) lure this period

of Expenditure Date (month, Arrount of eich Expel Full N ,me, rTr.:ilhnc address and ZIP code Purpose day, year) lure this period

...... 4i...... _ Subot.al of t pt.cu,|iit vs thi.s rrge (owtional)...... '. ....

,-,, ,,, , _,,,d , t , h line, n,,u,,,mbe, only) .9.0.6.8...... 1 s 9068 6 .20' Poge &Pfa. Ttirrl thrn~ jet it'd (1.-si j.-mr ttr~s In. nurmirir only) ...... 6.20~ -Itemized Expenditures Pa1e4 of11 fo ,4 Schedule'B LINE NUMBER 20 sanuary 3976 Campaig ndraising, Loans, and TransAm Federal Election COmmission (Use separate schedules) for each 1325 K Street. N.W. for Lines 20, 21, 22, and/or 23 of FEC Form 3 numbered line). Washington, D.C. 20463 (we Instructions on back) Nam of Candidate or Committee in full National Conservative Political Action Ccmxttee

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month. Amount of each expend- day. yar) ture this period Laura Daubenspeck 510 Oronoco St. Salary 8-13-76 181.00 Alexandria, VA 22314

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month. Amount of each expendi day, yer) ture this period Becki Cecil 809 W. Broad St., #206 Falls Church, VA 22046 Salary 8-13-76 192.92

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month. Amount of each expendi day. year) lure this period Hans Crane 511 Kramer Drive Salary 8-13-76 148.57 Vienna, VA 22180

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month, Amount of each expend. day, year) lure this period Kay Larcom 1245 35th St., N.W. Washington, D.C. 20007 Salary 8-13-76 90.54 Full Name, mailing address and ZIP code Purpose of Expenditure Date (month, Amount of each expend day. year) lure this period Roger Williams 308 S. Garfield Salary 8-13-76 102.42 Arlington, VA 22204

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month. Amount of each expend search, fieldwork, day. year) ture this period Hans Crane or C fee - General - 8-13-76 350.00 contribution-in-kind

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month, Amount of each expend day, year) lure this period Becki Cecil reimbursement expenses (Automobile) 8-13-76 9.80

Full Name, mailing address and ZIP code Purpose of Expenditure Date (month, Amount of each expen! period Quip Systems day. year) ture this 927 Fern St Office Equipncnt 8-16-76 121.68 Altamonte Springs, FL 32701 rental

Subtotal of expenditures this page (optional)......

Total this period (last page this line number only) ...... *e ...... $ Page Pttft -7W,- 1 101-IMO ,.w,mr Vw ngwU . ",,tr "a lI Vywr * .*O ~ ~. U ~ ~ ~ ****. I lot tine 20. 72. 23. &at/*#24 II iC rstm 3 loom o %Im. i - aL-k %Aeasom* sotN a*N00 rI - + ,,/+ 01 Caf ,*-- *+ - =m-. ~l'g ]**~ '~m e /.. Ote e O omf , -a Ow" National Conservative Political Action Committee Full Non. mq ~astn; add'eU and ZIP code Purpose of Expendnve a rOcn ho Amount of each) empe

fQr Congress Loan for dow-'pay day. Vest) 5-64Lndno- II ure this ped ment on telephone 200. O0 Cheverly, MD 20785 110/4/76 1_10/4/76 1 200.00 I full ',m.. malin; dee",aI ziP code ] ,ps- -1- -.-nd- Date (month. Amount of e.:m t. prod, Cdayvest) Taxpayers Action lure this pc'e,. Fund Loan for Ad vance 153 E. St. SE postage 10/13/76 Washington, D.C. 20003 2000.00

-W TId~. ~IC~ IP Pw'P '% of Em;4rlwr# Ca:C Imonth. A rmuni of aich e a ' r4, Diversified !ailin caY. yea) lute th S pf'" 1 Services Loan for Ad V/ance postage (General) 1016/76 4300.00 Orrin Hatch Ser w+=.CT- It;.for

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...... T . x 1 ~9 ~ m.1~t J' c ~rF1...... s6500 .00

P t 7+.o., AcII:T 2 - Burcham for Congress camittee reports of NCPAC contrikutions. (total: $4550)

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-"I a Id2~ top i .-Of q' r, ,Ized -kctlPt *1 6LNE NUMBER A godvt@ A Contrib ti lm C ket Purchases, Loans, wy ~i Rebates, and Transfersffor Line fUw spwae fichdusls) IV' each ea O &Ae .,4miiu twIYwed tons). ~S 9Steael. P4W. Numbers 15, IS.' 17 and/or 18 of FEC Formi PiWGOnC0 20463 too ln.11lie~leo" fl I~s -p 1* hanve of Candeasle or Cosanetlve on full

7 Ifmonth. A of =0"ge /.7~?/~ .~Cp/e~ F5S ~~~1II ~Dole A~ ~',97 dy yw vw5.ptthS5i Fusll No"*w. rriaslng address and ZIP coltA~

PfenCowal Place of buleneW

1AL-CheClk .1Contrebutot e%..Iti~DIOv~d i I~)~Q N/A&q~e~ae eatto.at...... e $ 4/ "M.~ . Amount Of Onch FullNo"0.IP odeDate oilng ddrw o~d Imath.

.er6h.LC A.43 &.Ift~ ~ -t - Princpgat place of butaneS Occuintioin

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I Agg.swe Year-toaoate...... 5 Date Oni Arnount of e3ch Full %-a"*. rrim aio'cs a- ZIP wde day. yowl re=Mtp thcS Perd

Prmncsqai plac of Oul'netS ontrfos~ef~OeCcu

ANg'e"te Year -to da t-e...... S ______iinh.Aon fec FPutl Nia-me. vrhalg adores anc ZIP coaDt

Principal place of bwstne OccpationI

0Check it Conithsuio? is self emvivWd A realar-lo-date ...... so__-$______b (month. IAmount of to Foll %armc, rmiling adof eta am*ZIP COtDt day. Vuef) recept this P2o

Principal place 0f business Ouvatoll 0Cteck of Conitibutof is tellempicived Aggregate Yesmo-date ...... 11"

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*0 ZeX~ Z htajhis period (laWtpage the lie number only'). . .'...... "o-0-..0..~ rage (.

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ja~r 1971A46 n,n ap-. pfars for Lir, 132t) K"'" Catt or C i, i7 aid/or i8 of FEC Form (Lke mt'te schdu els) for each numbers 1i5, bumbwbid Wit). -4al_t or Cc _ mtt in 1 (e IrLnxtions on . A)

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_v cim -(z -r CcnSc-ss 6MM;iE Amount of sedi emww. I b tdantl, iruilingeddre and ZIP cda Purpow of E aveuiture Amount of eac vmtnmi. doy. yow) two tf.5 Iied 4"MiH-i E-s"oiE 4.iir& SI pf-t-dvn t%\nd A r 'n F-. -i-t o--- (&q.00 F~tnSo,-,,Va. 22: :Co

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Full Narie. "ailing addf ^-u avid ZIP coe Purpogi of Expinditia., Dew (Mn,~ Anvurit of ech expend. day. year) ture this period

Full Name. maluing addreu and ZIP code Purpon Of Expenditure Date (moth. Amount of each expend.

Full Name. rreling Wdr~es and ZIP code Purpose of Expend iture Date (monWXth, Armunt of ech expendi day. rat) turn this period

Full Name, nuceirg eddiesa and ZIP code Purpon of Expenditore Dom. (month. Amount of each expeoo~- day. v er) tw this Period

Tout of exiw (Ude pu thispegsnuoeq onty)...... ,. S -

N-jo J4 S Debts and Obligations for LINE NUMBER O-( Schedule C Line Numbers 25 and/or 26 of FEC Form 3 Jam.,,sry ISM . Whe uprate mdh.d,1es for each Awurt~rud Stw. I -_o 132S K S3tr e, PqW. e -. s ~ i waswft04. OC. 20443 ______I I I-...-' I Nas of Cand1 Uata CO ir7 in frU Amount of Oigio Couwltht Pvyrrwt To Owlsad;fTin 8ans wt DOtr. Conti am A4-,-..- Ot C;owe ofI Th i Pw iod cr hMfl. Me~l. or Promi= -IA F ull Narre. rr' I adrdSa Z I P co . and nwn of Date (monik' obismation day. yew) !53q, 11 3Q 17 -+hru

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i -r I . S, b OUIS tis peiod thrs P" lo o all ...... js,S -3-3.S 1$ 31 T*%A this Pw-iod (Idw Pe" this 1i1w numb" onty' ...... 10- ary baacaWSut-t1,r.c Cr, y. lifite moro.rItS Of Suvra. Ticket Pwoph~scsy Loants, LINE NUMBER -hdul*A Contributions, a ntd T ransfers - oar Line IrtrsJU wd ~ )l wt c J~auary AC, bml )Of R eba3tes. 15.,16, 17 and/or 18 of FEC Form 3, umwfid w32aKShlnglo. .. Numbers

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-Page ATICHME 3 - NCPAC "ilndependent expenditures" in support of Burcham. (total: $23,327.69) Natenal Con I1 , Political Action Committee 1911 north fort myer dr. suite 706 arlingto3 522-2800J --

October 19, 1976

Federal Election Commission 1325 K Street Washington, D.C. Gentlemen: The National Conservative Political Action Committee at 1911 N. Fort Myer Drive, Identification No. C00024681 made an expenditure to WETA-TV 3620 27th Street, Arlington, VA 22206 in the amount of $1301 on the 18th of October, 1976. This was an unauthorized independent expenditure in behalf of Ed Young for Congress, Lee Terry for Congress, Ken Fulk for Congress, John Burcham for Congress, and Carty Finkbeiner for Congress. This was in support of these candidates. This istobeallocated in the following proportions: Young $371.70 Terry $185.90 C Fulk $371.70 %0 Burcham $185.85 N Finkbeiner $185.85

RJS/mjm

TtoT Nat~nal Conser otive Political Action Committee 1911 north fort myer dr. suite 706 arlington, va. 22209 (703) 522-2800 '

October 20, 1976

Federal Election Commission 1325 K Street NW Washington, D.C. 20463

Gentlemen:

This is to inform you than the National Conservative political Action Committee has made the following unauthorized, indepewdent .- expenditures on October 19, 1976:

1) WTOP-TV, 40th and Brandywine NW, Washington D.C. 20016 in the amount of $4 152.25.in stpgrt of John Burcham for Congress.

2) WTTG-TV,5151 Wisconsin Avenue NW4, Washington, D.C. 20016 in the amount of $1134.75 in support of John Burcham for Congress.

RJS/mIjm

P.S. NCPAC Identification Number C00024681.

~* National Conserv tive PoliticIl Action Co, rittee 1911 north fort myer dr. suite 706 arlington, va. 22209 (703) 522-2800

October 21, 1976

Federal Elections Commission 1325 K St. NW Washington, D.C. 20005

Dear Sirs:

This is to inform you that the National Conservative Political Action Committee (NCPAC), identification number C00024681, made the following unauthorized independent expenditures on October 20, 1976. In support of John Burcham for Congress: Kal, Merrick, & Salan, Inc. Advertising, 2141 Wisconsin Ave. Washington, D.C. 20007, in the amounts of $10,248. and $244.34. In support of Ken Fulk for Congress: Kal, Merrick, & Salan, Inc. Advertising, 2141 Wisconsin Ave., Washington, D.C. 20007, in the amounts of $5,418. and $244.33. In support of Dan Marriott for Congress: Kal, Merrick, & Salan, Inc. Advertising, 2141 Wisconsin Ave., Washington, D.C. 20007, in the amounts of $1,200. and $244.33.

/ National Conservative Political Action Committee !911 north fort myer dr. suite 706 arlington, va. 22209 (703) 522-2800

October 26, 1976 pprwcrn OCT "'3 1976"

Federal Elections Commission 1325 K St. NW Washington, D.C. 20005

Dear Gentlemen:

The National Conservative Political Action Comnittee (,C:C),- identification number C00024681, made the following unauthorized, independent expenditures cn October 25, 1976: suport-n of Burcham Co.nresS: 20015, in the , 44(0 Jen-ifer t. .,, f7%hint, D.C., of 57,012. 50.

':CJC ZO~ C- , S.C., i • '.}.::s --i - d t on "-hs = ... o 2 -'0 L!.2: <<: =f 92. 0, C 1 71.

Roger J. Stone

I I National Con's we 1911 nt Political ActioRn Committee north fort myer dr. suite 705 arlington, va. 2t22 10703) 522-2800

RECEIVER OCT Z3 1376 October 26, 1976 R o VE V E

Federal Elections CoMmission 1325 K St. NW washington, D.C. 20005

Dear Gentlemen:

The -tional Conservati,.. -olitical Action Committee ;CAC) , ienitifcaticon ,r:-rrC0C024681, made the followini uathocrized,n ,-:.---- -. 3ndcnt;ti*re on October 26, 1976-

n s c.,rt cf :.9,oun 3 for C ,Cless - $700 Cc- c-s3S - S350 ?ik: for (:r. t-e's C-$700 .. -- .-. , . e -50 .

- (-~ >~% ...... - , .. ,,--

I ATTAHmE~ 4 -Notification andi specific questions to NCPAC . , %

FEDERAL ELECTION COMMISSION 1325 K STREET N.W * WASHINCTON.U.C. 20463

CERTIFIED MAIL RETURN RECEIPT REQUESTED

Mr. John Dolan National Conservative Political Action Committee 1911 N. Fort Myer Drive Suite 906 Arlington, VA 22209 Re: MUR 299 (76)A

* Dear Mr. Dolan: This letter is to notify you that the Federal Election Commission has received a complaint against your committee which alleges certain violations of the Federal Election * Campaign Act of 1971, as amended (the Act). We have numbered this matter MUR 299 (76)A. A copy of the complaint is enclosed. The Commission has reason to believe that the matters alleged therein state a violation of 2 U.S.C. §434(b) and 2 U.S.C. §441a(a) (2) (A) in that expenditures reported as "independent" on reports filed on behalf of the ',. National Corservative Political Action Committee may not N have been independent. If those expenditures were in fact contributions, they may exceed the legal limit on contributions under 2 U.S.C. §441a(a) (2) (A). Under the Act, you have an opportunity to demonstrate that no action should be taken against you. Please submit any factual or legal materials which you believe are relevant to the Commission's analysis of this matter. In addition, we would appreciate your Committee's response to the attached questions. Where appropriate, statements should be submitted under oath.

The Comm.ission is under a duty to investigate this matter expeditiously; therefore, your response should be sumbitted within 15 days after receipt of this notification. you have any questions, please contact David R. Spiegel, If to this case. telephone no. 202/382-4055, the attorney assigned

.. . . ° . .. - i I ' I " .4 . 'a

This matter will remain confidential in accordance with 2 U.StC. S437g(a)(.3) unless you notify the Commission in writing that you wish the investigation to be made public. Sincerely yours,

John G. Murphy, Jr. General Counsel

Enclosure

it fplanning and authorizing *.Idenitify tjos pesn ONzC nole n th rcl expenditures .fran NCPAC's accounts. Also identify those persons

responsible for setting general policy regarding NCPAC expenditures.

independent expenditures" 2. NCPAC h-as reported the .following "urauthorized, in support of John Burcham: Oct. 18, 1976 $ 185.85 Oct. 19, 1976 $4152.25 Oct. 19, 1976 $1134.75 Oct. 20; 1976 $10248.00 Oct. 20, 1976 $ 244.34 Oct. 25, 1976 $7012.50 Oct. 26, 1976 $ 350.00

the With respect to the above-nentioned expenditures, please provide follorwing information:

a) a detailed description of the type of expenditure made; texts b) a copy of any printed r atter, e. g. . newspaper advertise-ents, of broadcasted naterial; in the planing c) identification of all NC2AC oarsornnel involved and authorizing of these expenditures;

d) procedure by which the cont s of any advrise-ents were determined; N.: e) did any of these expanditures or the content of any advertisaTents for which these epxenditures were made involve contact with John Burcham or any of his aoents? If so, list the expenditures and describe the contact.

3. NCPAC has reported making payrents to Hans Crane on July 12, 1976, and August 13, 1976. Please describe NCPAC's relationship with

Hans Cr'ane, e.g., is he a rcgular ap.-loyee, how did NL2AC arrange to pay for his consulting the Burch=r for Congrcss Committee?

to J *03

NO. MUR 299 (76)B DA.E: Mi'D TV-11ZOF TRATSIVI.'TA : J/- s'-7. lIOA, 4 PFE.C'I) : 0/2 SL76...

FED)ERAL ELECTION COF.I ISSION Washington, D. C.

Comp1alrant's Nam: Citizens for Spellman _

Restonc,... 's : Burcham for Congress Committee

Rele%. .-.-- S t- z 2 U.S.C. §434(b) (2) _:__"

tC-.,I-- -2:- ChezckeJ: National Conservative Political Action Committee (NCPAC) ; Burcham f gs- tdcerai 7.ci. Checked: None

SU. ,Y ? .'. --7 ,

Reporting violation I2(b) (21.tL4__BbLrchawI_.Conxre ...

__ -failed to report as transfers certain payments made by NCPAC and

reported by.NCPAC as "independent expenditures."

FRELIMTI 'NARY LEGAL ANALYSIS

See legal analysis for allegation #1 MUR 299 (76)A with NCPAC as

respondent.

Reason to believe violation of _43_4Lb.2) has occurred. A proposed

notification, including specific questions is attached.

OaLe oLe0 c:xt Cc:t:n.tssion RP.ViCW: 0 S

* FEDERAL ELECTION COMMISSION 1325 K STREET N.W. j WASHINCTON.D.C. 20463

CERTIFIED MAIL * RETURN RECEIPT REQUESTED

* William Remsburg, Treasurer Burcham for Congress Committee 5809 Landover Road Cheverly, MD 20785 Re: MUR 299 (76)B

Dear Mr. Remsburg: This letter is to notify you that the Federal Election Commission has received a complaint against the Burcham. for Congress Committee which alleges a violation of the Federal Election Campaign Act of 1971, as amended (the Act). We (have numbered this matter MUR 299 (76)B. A copy of the complaint is enclosed. The Commission has reason to believe that the matter alleged therein statesa violation of 2 U.S.C. S434(b) (2), in that certain expenditures reported as "independent" by the National Conservative Political Action Committee may not have been independent but rather contributions in-kind to John Burcham. Failure to report these payments f as contributions would be a violation of 2 U.S.C. S434(b)(2). N" Under the Act, you have an opportunity to demonstrate * that no action should be taken against you. Please submit any factual or legal materials which you believe are relevant * to the Commission's analysis of this matter. In addition, we would appreciate your Committee's response to the attached *questions. Where appropriate, statements should be submitted under oath.

The Commission is under a duty to investigate this matter expeditiously; therefore, your response should be submitted within 15 days after receipt of this notification. You will * be sent copies or sunaries of all correspondence received by the Commission from the complainant concerning this matter. If you have any questions, please contact David R. Spiegel (telephone no. 202/382-4055), the attorney assigned to this case.

" ".i-" To" ., 'I f o ,,

4 - This matter will remain confidential in accordance w3th 2 U.S.C. S437g(a) (3) unless you notify the Commission in writing that you wish the investigation to be made public. Sincerely yours,

John G. Murphy, Jr. General Counsel

Encljsure

C-.

II * 9 1. Iddntify those persons at the Burcham for Congress Comittee ivolved in the pvocess of planning and authorizing expwitures frun the Ccxuittee's accounts. Also identify those persons responsible for settirg general policy rgdigthe*Ccznxnttee' s expexitures.

2. National Conservative Political Action Cmttee has reported the following "unauthorized, independent expenditures" in support of John

Oct. 18,1976 $ 185.85 Payment to 9r-TV Oct. 19,1976 4152.25 _Pyment to WIP- Oct. 19,1976 $ 1134.75 Payment to WirG-W Oct. 20,1976 $10248.00 Payment to Kal,Merrick & Salan Adve Oct. 20,1976 $ 244.34 tising Oct. 25,1976 $ 7012.50 - __Payment 'to ii." Oct. 26,1976 $ 350.00 Payment to Gary Sukow

With respect to the above-mentioned payments, please provide the following information: al did the m&king of any of these expenditures involve contact with any Burcham for Congress Ccaittee personnel? If so, identify

the personnel, and explain the nature of the contacts. b) did any Burcham for Congress czufttmee personnel have any responsibility for the contents of any advertisements for which these expenditures were made? If so, please identify the personnl, and explain the

nature of the responsibilities.

3. NCPAC has reported the following transactions relating to your

car nittee: July 12, 1976 $700.00 to Hans Crane for "consultant fee, working for Burcham for Congress" August 13, 1976 $350.00 to Hans Crane for "research, fieldworl consultant fee - Burcham for Congress - general contribution-in-kird." October 4, 1976 $200.00 loan for downpayment on telephone 4,2-

With respect to these payments, please provide the followIng infozmaticn: a) Has Burcham for Congress Cmlitt.ee reported the July 12, 1976, cmntribution to the Federal Election Ccmission? If so, identify the report onhc the contribution was included. If not, please explain. b) provide a detailed description of the purpose of these paynmnts; c) dentify the Na Cal Cnservative Political Action Ccmtuttee persormel with whCM your Caruuttee dealt concerming these contributions; d) identify the Burcham for Congress Carrittee personnel who had contact with the National Conservative Political Action Ccmntree personnel concerning these contributions; e) explain the nature of any contacts between National Conservative Political Action Carmttee personnel and Burchan for Cobngress Camittee personnel, as noted in c and d above.

¢-~ Wer Charles, Suml atUSSxb for '90412an

c~*' N~' Greernbelt, MarylrAzi 10770

Dear Mr. Sel, 9 This is to acknowledges roe.pt of 7OUr *omUlmt cm~ of Ociabbrvzt5, 1974, alloging Violst Qt thoa~ deral Election Campaign Laws, X *tiWt membei ts i)6 C assigned to analyze your All".0ftions amd 'a rwmam wtion to the F6deral Election Co "ii"m Os to hwtt matter should be handled will -be made shortly. Y"Ia vIdI C be notified as soon as the Cmamisiia determines. what action shouxld be taken., 5

Sinceere'ly yours.:

waM$1S C. OZ_#*ker rsitnIe~a EcLse

DFFI~nrpj..AmileI~ FIL COP

JBrowning :pjg: 11/1/76 cc: JB

* ~ 0 SER m9R*Add. isms .2 n

1.he a~hwlag urvxe is requested (check one). iSW to whom and date delvered ...... ISO SShow to whom, date, & addren of delivery. $3f o RETRICTED DELVERY. Show to whom and date delivered...... _ 654 E- RESTRICTED DELIVERY. Show to whom, date, apd address of delivery 85f

2. 4"1CtgMM~gaagTo.

I have received the article deCnR aV.

SIGI4A > 0 Addressee ttuthorized agent

* *my if mpm--m L

6- uNAOLIE To DEIVRa eCCuse:

PC G-, - o ~ g dys npdilman '76 OCT 1e ,makes1 the difference. October 29, 1976 %~tip Federal Election Comission 1325 K Street, N. W. 7632-89 Washington, D. C. 20463

Attention: Compliance Review Section

Dear Commissioners:

This is an addendum to our corplaint against the Burcham for Congress Ccrnittee and the National Conservative Political Action Coniittee, dated October 25, 1976, and filed with the Ccmmission.

Complainant hereafter presents further evidence that the subject violations of our complaint have in fact occurred. In addition we hereby request the Comission to incorporate the corplaints and exhibits attached thereto filed by the National Coiriittee for an Effective Congress against the following named committees and their authorized agents:

The National Conservative Political Action Coittee 1911 North Fort Mver Drive, Suite 906 Arlington, Virginia 2220c Dated October 22, 1976

The Ccnmittee for the Survival of a Free Congress 6 Library Court, S. E. Washington, D. C. 20003 Dated October 22, 1976

The Corrittee for Responsible Youth Politics 3128 North 17th Street Arlington, Virginia 22201 Dated October 22, 1976

The Eployee Rights Campaign Conittee 8316 Arlington Boulevard Fairfax, Virginia 22038 (an affiliate of the National Right to Work Comittee of the sane address) Dated October 20, 1976

The Public Service Political Action Conz-ttee 8320 Old Courthouse Road Vienna, Virginia 22180 (an affiliate of the Public Service Research Council of the sam address) Dated October 20, 1976

Citizens for Spellman Reelection Headquarters A copy of our report Is filed with the Federal Elections 2 0 770 Commssion ,td IS available for purchase from the Com. 6000 Greenbelt Road, Greenbelt, Maryland FEERAL rEETION COMIomSSI ission, Washington, 0. C. 20402, (301) 441-9500 . . FiLE Cop By Authority of Joseph F,.McBride, Treasurer. UIIO0flCIA IU~IL FILE COPY is0

Federal Election Comnission - 2 -

Richard Viguerie Company 7777 Leesburg Pike Falls Church, Virginia 22043 Dated October 22, 1976

Congressional candidate John Burcham who is Congresswoman Spelman's opponent has reported receiving money and in-kind contributions from all of these committees. Based on the above-referenced documented complaints of NCEC against these committees, as well as our own complaint previously filed against the Burcham Committee and the National Conservative Political Action Committee, it is clear that all of these committees are distributing tainted money, and John Burcham, unlike any other Congressional candidate in the country, is receiving funds frm all of them.

We further point out to the Commission in support of our original complaint the item in the latest report by the Burcham Comittee dated 10/5/76 reporting a loan by the National Conservative Political Action Committee to the Burcham Committee for "telephone deposit." This is further, and we feel conclusive, evidence of the relationship complained of between these committees. Certainly the NCPAC would not loan the campaign coimittee money unless its agents were aware of the candidates plans, projects and needs, and if that is so, it is even more difficult to accept the Burcham Carnittee's contention that a committee which loans it money for phones and "consults with it at a fee of over $1,000" is not aware of its needs.

Accordingly, we hereby reiterate our prayer for the relief requested in our complaint. Obviously, time is of the essence since the illegal advertising complained of is being aired and printed in the remaining four days of the campaign. The Burcham campaign has to date reported receiving $11,544 from these illegally and secretly affiliated committees in violation of the letter and spirit of the Federal Election Campaign Act. This does not include the over $10,000 worth of illegal advertising which has gone unreported by Burcham and which is the subject of our complaint.

Obviously, an illegal expenditure of this magnitude must be dealt with immediately if the Commission is to enforce the law in a manner that is mean- ingful and set a precedent which will serve notice on all future candidates and their contributors that they cannot expect to conduct campaigns outside the scope of the law without facing stiff consequences before the election.

We believe that a prima facie case has been made that the subject violations have occurred. We therefore request that the Commission act forthwith to prevent further abuses.

Sincerely,

OFti~I i ! L CampaignCharles B. Sewell Manager, Citizens for Spellman Citizens for Spellman ' Reelection Headquarters ,ad R.. ' 7 _ I_ 6ee C:ei :t. Greenbelt. MaryI3and 20770

Feeral lecton ,,orrErs _,cn -' j 132 tr"-"ee, ' Wailrton D.C. 204'63 C-..'

A~iyTIoU • Dave Pnderson GLADYS NOON SPELLMAN: She makes the difference. gladys qoon man She maksoct 4jf rence.

October 25, 1976 'i 6;;I-.L,3,9

Federal Election Carmissicn 1325 K Street, N. W. Washington, D. C. 20463

Attention: Ccmpliance Review Section

Dear Commissioners:

This is a complaint filed under the provisions of 2 U.S.C. 437g of the Federal Election Canpaign Act Amendments of 1976.

We believe that the Burcham for Ccngress Carmittee, an authorized Ccmmittee of John Burcham, candidate far Congress, F.E.C. I.D. No. 049115 and the National Conservative Political Action Cammittee, a multi-candidate ccamittee, F.E.C. I.D. No. C00024687, have violated 2 U.S.C. 441a(a)(2)(A), 2 U.S.C. 441a(f) (Limitations) and 2 U.S.C. 434 (Reporting) of the Federal Election Campaign Act Amendments of 1976 in that the Burcham for Congress Camttee has received fran the National Conservative Political Action Camittee which has contributed to it in excess of the $5,000 limitation imposed on each under the above cited sections of the law and both have failed to report such contributions as required by law. We base these allegations on the reports of both these camittees which have been filed with the Cazmssion to date and on information fram the Washing- ton Post article of October 22, 1976, by Karen De Young, which resulted fram her own independent and impartial investigation. A copy of that article is attached hereto and prayed to be made a part of this corplaint. Specifically we believe that the $10,000 spent by the National Conservative Political Action Carittee for production and media space for television and newspaper advertising advocating the election of John Burcham is not an independent expenditure under 2 U.S.C. 431(P) and Section 109.1 of the Rules and Regulations of the Comission as claimed by the NCPAC but rather is an in-kind contribution to the Burchan Comimittee as defined in 2 U.S.C. 441a(a)(7)(B)(i).

A copy of our report is filed with the Federal Elections Citizens for Spellman Reelection Headquarters Commission and is avaiable for purchase from the Corn. 6000 Greenbelt Road, Greenbelt, Maryland 20770 Or'ission, Washngton, D. C. 20402. (301) 441-9500 a. By Authority of Joseph F. McBride, Treasurer. ) ~~~ ... -, ~4 2 1 Federal Election Cammission -2 -

For our authority therefore we refer the Commission to Section 109.1(b)(4) of its rules and regulations which defines "Made with the cooperation or with the prior consent of or in consultation with, or at the request or suggestion of a candidate or any agent or authorized committee of the candidate" which means:

"(i) Any arrangement, coordination or direction by the candidate or his or her agent prior to the publication, distribution, display or broad- cast of the ccmmnication. An expenditure will be presumed to be so made when it is-

(A) Based on information about the candidate's plans, projects, or needs provided to the expending person by the candidate or by the candidate's agents, with a view toward having an expenditure made " N In this case NCPAC reports a $700 expenditure for consultant fee for one Hans Crane working for Burcham for Congress on July 12, 1976, which the Burcham Committee fails to report at all. The Burcham Committee reports as an in-kind contribution presumably an additional $350 consultant fee from NCPAC on a different date, August 13, 1976. An inquiry to the Washington Post produced the comment that the position of NCPAC is that the disparity between the amounts and dates in the re- spective reports of Burcham and NCPAC results from an "accounting error." These contributions which total $1,050 even as the Burcham Cacmittee fails to report C $700 of it are in addition to the $1,000 contributed on 5/17/76 and the $2,000 on 6/23/76 by NCPAC to the Burcham Committee for a total of $4,350. If coupled with '"r the $10,000 expenditure reported in the Washington Post and verified by phone with the appropriate media concerns the total contribution from NCPAC to the Burcham Carmittee is $14,350 which is a direct violation of the above cited sections of the Act.

To believe as the Burcham Cormittee and NCPAC suggest that a ccMmittee which has provided over $1,000 in consulting work to a campaign would be unaware of the candidate's plans, projects or needs or that the candidate or his agents have not provided the expending person (NCPAC) with this information with a view toward having an expenditure made is to defy the use of logic which these circumstances dictate. Furthermore, the above cited regulation refers to "any arrangement, coordination or direction by the candidate or his agent." By their own reports, the Burcham Cam- mittee and NCPAC have had such a relationship at least since July 12, 1976.

Accordingly under 2 U.S.C. 437g(a)(3) we hereby request that the Cormission conduct an investigation expeditiously and if unable to correct or prevent this violation informally to then make a determination whether there is probable cause to believe that the violations we are alleging have in fact occurred and upon such a finding to institute a civil action for relief including a permanent or temporary injunction, restraining order or other appropriate order to prevent the continuing violation of the Act under 2 U.S.C. 437g(5)(B). Fede al Election Cormission -3 -

At the present time., we have confirmed that WTOP television as well as the Washington Post and the Washington Star newspapers have accepted the advertising in question. In light of the severe prejudice to Congresswoman Spellman which could result from the airing and printing of $10,000 of illegal advertising, we would request expeditious handling of this matter. We trust that you will notify us of any action on this matter. Thank you. Very truly yours,

Charles Sewell, Campaign Manager

STATE OF MARYLAND: COUNTY OF PRINCE GEORCE' S:

%_ - and sworn to this-- 71, day of October, 1976, before me Subscribed .... . I- (-1. . a notary public of the State Jc:- ii . ,7 4 ~

of Maryland.

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'LLAI17 WAA 165 (1517)2 ~E32)PD 10/28/7( 1t6 t 0 tcS tN'TZZ csP Ce: 3012773418 TDMT b VERLY MD 83 1o-2 0317P EST In/ ,2.99 T.,n PmS COMMISSIONER VERNON THOMPSON, CHAIRMAN FEDERAL ELECTION COMMISSIO 9 DLR 1325 K NORTH VEST FIFTH FLOOR WASHINGTON DC 0 ATTEMPTED FONE FM MOORESTOWN, NJ UNSUC REFUSED ON ONE 10-2! 1247P

763276 DEAR COMMISSIONER THOMPSON f%.. I AN URGENTLY REQUESTING YOUR IMIEDIATE DECISION REIARDING THE * coIPLAINT REGISTERED AGAINST ME BY MY OPPONENT CONGRESSWOMAN GLADYS NOON STELLMAN CONCERNING ADS RUN 0N TELEVISION AND IN THE NEWSPAPERS * VEPICTING MY OPPONENT AS A BIG SPENDING ULTRA LIBERAL. HER ATTACK AGAIIST ME WAS SCURRILOUS AND DEMANDS YOUR IMMEDIATE ATTENTION. MY 0 SF-1201 (59 INTEGRITY AND THAT OF MY STAFF HAS BEEN QUESTIONED AND I AM FURTHER DEMANDING THAT MY OPPONENT EITHER SHOW PROOF OF THE CHANGES OR *) APOLOGIZE PUBLICLY TO US ALL. JOHN BURCHAM CANDIDATE FOR CONGRESS FIFTH DISTRICT MARYLAND t* NINNN

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