BEFORE THE FEDERAL ELECTION COMMISSION In the Matter of ) Honolulu Star-Bullentin, Inc., ) Gannett Pacific Corp,. ) MUR 294 (76) The Hawawii Newspaper Agency, ) Philip T. Gianella, ) A.A. Smyser and ) John E. Simonds ) CERTIFICATION I, Marjorie W. Emmons, Secretary to the Federal Election Commission, do hereby certify that on November 4, 1976, the Commission adopted the recommendation of the General Counsel that it finds no reason to believe that a violation of the Federal Election Campaign Act, as amended, had been committed in the above-captioned matter. Accordingly, the file in this case has been closed. W. Emmons Secr~ary to the Commission --- a NO. DATE AND TIME OF TRANSMITTAL: 0%BO REC'D: !0-22-76 _ FEDERAL ELECTION COMMISSION Washington, D. C. Complainant's Name: Tony Hodges (notarized) Honolulu Star-Bulletin, Inc., Gannett Pacific Corp., P11ijli2_T. lianell1a. A-A Respondent's Name: The Hawaii Newspaper Aency. N Smyser and John E. Simonds Relevant Statute: 411b Irternal Reports Checked: People for Tony Hodges Federal Agencies Checked: SUMMARY OF ALLEGATION (1) Complaint- alleges that Rimspn-nt made 11l al corpQrate contributions to major party candidates through discriminatory_ newspaper coverage, which excluded complainant and other minor candidates from an issue-forum project entitled "Candidate Quiz", and therefore benefittedthe candidate chosen to participate.. PRELIMINARY LEGAL ANALYSIS While §441b procribes corporate contributions or expenditures in connection with any election, under §431(f)(A) "'expenditure' does not include any news story, commentary, or editorial distributed Respondent through the facilities of any . newspaper." Since the publications do not appear to be owned or controlled by any political party, political corrmittee, or candidate, there is no reason to believe that they are in violation of the statute. RECOVMENDATI ON Close file. send letters. Oate of LOext Coimnission Review: m FEDERAL ELECTION COMMISSION 1325 K STREET N.W WASHINGTON,D.C. 20463 CERTIFIED MAIL RETURN RECEIPT REQUESTED Mssrs. Phillip T. Gianella A.A. Smyser John E. Simonds Honolulu Star Bulletin, Inc. P.O. Box 3080 Honolulu, Hawaii 96802 Re: MUR 294 (76) Dear Sirs: I am forwarding the enclosed complaint pursuant to Section 437g(a) (2) of the Federal Election Campaign Act for your information. As shown by the attached copy of my letter to complainant, the Commission believes that on the basis of the information in the complaint there is no reason to believe that a violation of any statute within its jurisdiction has been committed. Accordingly, the Commission does not intend to investigate the matter any further. Sincerely yours, John G. Murphy, Jr. General Counsel Enclosure 5 1QkurfoA42 I I r FEDERAL ELECTION COMMISSION 1325 K STREET N.W 14 WASHINGTON,D.C. 20463 CERTIFIED MAIL RETURN RECEIPT REQUESTED Mr. Carl J. Barrea Vice President/Advertising Hawaii Newspaper Agency 605 Kapiolani Boulevard P.O. Box 3350 Honolulu, HI 96801 Re: MUR 294 (76) Dear Mr. Barrea: I am forwarding the enclosed complaint pursuant to S437g(a) (2) of the Federal Election Campaign Act for your information. As shown by the attached copy of my letter to complainant, the Commission believes that on the basis of the information in the complaint there is no reason to believe that a violation of any statute within its jurisdiction has been committed. Accordingly, the Commission does not intend to investigate the matter any further. Sincerely yours, John G. Murphy, Jr. General Counsel Enclosure " . .: : ,. .. , O~ rO ,4 FEDERAL ELECTION COMMISSION 1325 K STREET N.W WASHINGTON.D.C. 20463 CERTIFIED MAIL RETURN RECEIPT REQUESTED Mr. Anthony Hodges People's Party of Hawaii 3238 Paty Drive Honolulu, Hawaii 96822 ReW ?4UR 294 (76) Dear Mr. tddges: This owledges receipt of your complaint dated 1976alleging certain violations of the i Fe -ceera ion Campaign Act of 1971, as amended, by the Honolulu Star-Bulletin, et al. I have reviewed- your allegations and have concluded that on the basis of the information provided in your complaint that there is no reason to believe that a violation has been committed. Accordingly, upon my recommendation the Commission has decided to close the file in this matter. Should additional information come to your attention which you believe establishes a violation of the Act, please contact me. The file reference number for this matter is MUR 294 (76). Sincerely yours, John G. Murphy, Jr. General Counsel L. , I I '.?77-,.. CERTIFIED MAIL 0 i "- ...... RETURN RECEIPT REOUE R7,UbT a - Tony Hodges Candidate for the U.S. Senate 3238 Paty Drive Honolulu, Hawaii Tel. No. (808) 988-2557 Complainant October 18, 1976 FEDERAL ELECTION COMMISSION 1325 K Street, N.W. Washington, D.C. 20463 To Whom it may concern: This is a complaint against the Honolulu Star-Bulletin, Inc., Gannett Pacific Corporation, the Hawaii Newspaper Agency, Philip T. Gialanella, A.A. Smyser and John E. Simonds, either or all of them, for probable criminal. violations of the Federal Election Campaign Act of 1971, ~as amended. It is charged by this complaint that the above-designated corporations, either or all of them, through the above- named individuals, acting individually or in concert, have knowingly and willfully made, and presently intend to a- gain so make illegal corporate campaign contributions to certain candidates presently running for the U.S. Senate from the State of Hawaii. It is asked that this matter be immediately referred to the U.S. Attorney General. The relevant section of the Federal Election Campaign Act charged to have been violated is that found under section 441b, which makes illegal corporate contributions to any candidate for federal office: S441b(a) It is unlawful for ... any corporation organized by authority of any law of Congress, to make a contribution or expenditure in connection with any election to any political office, or in connection with any primary election ..., or for any corporation whatever ... to make a contribution or expenditure in connection with any election at which ... a Senator or Representative in ... Con- gress is to be voted for, or in connection with any primary election ... held to select candidates for any of the foregoing offices, or for any can- didate, political committee, or other person know- ingly to accept or receive any contribution pro- hibited by this section, or for any officer or any director of any corporation ... to consent to any contribution or expenditure by the corporation ... prohibited by this section. For purposes of this section,... the 8441b(b)(2) include term "contribution or expenditure" shall or indirect payment, distribution, loan, any direct services, advance, deposit, or gift of money, or any ... to any candidate, campaign or anything of value in committee, or political party or organization, with any election to any of the offices connection added) referred to in this section... (emphasis centers upon Star-Bulletin contributions This complaint a Republican can- of newspaper space to Mr. William Quinn, U.S. Senate, whose law firm has in the didate for the the Star- past represented and does continue to represent Mr. Spark Matsunaga, a Democraticcan- Bulletin, and to to didate for the U.S. Senate, who, as a Representative for the Newspaper Preservation the U.S. Congress, voted Ha- allows the Star-Bulletin, Gannett and the Act which monopoly. waii Newspaper Agency to act as a legal CCOUNT I Rendering of Services and Contributions of Value during the Primary Elections for the United States Senate pre- During the month of September, 1976, and immediately the primary elections held in Hawaii, the Hon- ceeding one or more olulu Star-Bulletin, acting in concert with of the other complained of corporations or individuals, a so-called "public service" project entitled conducted consisted "Candidate Quiz." These "candidate quizzes" of questions from Star-Bulletin subscribers of a series office. addressed to the candidates for major political these questionnaires to N The Star-Bulletin, however, sent they considered to be "major can- only those candidates later pub- didates," seeking their responses which were (See copies of the "Quiz" at- lished in the newspaper. on tached hereto, which appeareT-in the Star-Bulletin September 20, 21 and 23, 1976.) quizzes" were sent only to the Democra- These "candidate only to tic and Republican candidates (but even then, candidates of the Democratic senatorial race). the "major" running They were not sent to the other party candidates for their party's nomination, although in the primary equally these other candidates had requested to be treated / Instead, the Bulletin merely published by the Bulletin., those in a later edition of its paper an article covering for Godly 1. These other parties include the Independents Government, Libertarian and People's Party. -2- 0.7 parties whose candidates were not allowed to participate in the "Candidate Quiz." Even with this, however, the articles focused upon the parties and not the specific candidates running for each party's nomination. Prior to publication of the "Quizzes," complainant Hodges met with representatives of the complained-of parties, showed them copies of the relevant sections of the Federal Election law prohibiting corporate campaign contributions, and stated his position that to provide and publish this "Quiz" for some at the exclusion of other viable candidates was to provide services of con- siderable value, at no cost, to specific candidates,,,,AM specific parties to the detriment of other candidates and political parties not covered through the "quizzes." Hodges' position was also made known to candidates Mat- - - sunaga and Quinn, at which time he requested that they refrain from participating in the "Quiz," at to do so Cwithout all candidates being represented might place them in the position of having knowingly accepted and received a contribution prohibited by the Federal Elec- tion laws. COUNT II Rendering of Services and Contributions of Value during the General Election for the United States Senate Since the primary election, it has been learned that the Star-Bulletin intends once again to conduct these "quizzes" for the general election.