FEBRUARY 2, 1963 SIXTY -NINTH YEAR 50 CENTS SWINDLE SHEET RULES GETTING SHAPED UP By MILDRED HALL WASHINGTON -The latest word on rules for deducting enter- tainment and travel expenses came out of the Internal Revenue Service last week in the form of a 20 -page pamphlet. The rules outline a fairly broad policy of entertainment allowances, provided the businessman keeps a good record of the outing, doesn't try to ring in his whole family on the deductible fun and indicates a business purpose. BiliboarMusic -Record Newsweekly The word "reasonable" appears to be the keynote. IRS says International The the deductible must be "reasonable" in amount, not lavish or ex- traordinary. The spender must have a "reasonable expectation that your business or your employer's business would benefit" by the Continued on page 8 Dave Gardner Witness Tells FTC Hearing Sues RCA for Club Hurts Sales & Profits By REN GREVATT Record Club was NEW YORK by Cornelius F. NEW YORK -The Columbia -Testimony by a prominent $3,500,000 vice -president and general manager vigorously attacked last week Keating, for its role as a the Columbia Record Club was a high- record manufacturing executive BILOXI, Miss. -Dixie come- of competition with retail record light of the early and midweek sessions of retailer in direct dian Dave Gardner obtained a Federal Trade Commission stores across the nation. restraining order court hearings involving the in district certain practices In testimony taken during here last week against RCA Vic- charges against of hearings on Fed- of the club. A number of New seventh day tor, blocking the sale of the al- area dealer eral Trade Commission charges Seriousness as York metropolitan * NATIONAL BREAKOUTS bum "All Aside," were also heard dur- Otto Harbach of monopoly and unfair pricing a $3,500,000 damage witnesses part of Tuesday and Wednesday tactics against the Columbia suit against the label. ing Leon C. (22 -23) with much the 89 mail -order operation, No National Breakouts This Week In his complaint, as presented sessions Dead at vice -president and line of questioning being Hartstone, by Hollywood attorney Seymour same general manager of London used for all of these. NEW YORK- The man Lazar, Gardner contended that the of Ameri- Records, Inc., charged that the without knowl- Keating, on the stand Tuesday known as "Dean RCA Victor, his question- can Librettists" died here on club has "hurt and decreased BREAKOUTS an LP morning (22), through * REGIONAL edge, took rejects from counsel, Thursday (24). Otto A. Harbach, our sales volume and our profit recorded live during a night ing by Commission Lavine, discussed many who passed away after a long structure." club appearance and assembled Richard examination by These new records, not yet on Billboard's aspects of the club operation. illness at the age of 89, col- Under direct Hot 100, have been reported getting strong these into the All Seriousness FTC Richard Lavine, He said the club now numbers laborated with such esteemed counsel, salo action by dealers in major market(s) Aside" package. The material Rudolph Friml, Hartstone explained that much listed in parentheses. left 1,750,000 members, which are songwriters as used, he claimed, was over and Oscar Hammerstein Il, Irving of his firm's product "does not from an album Victor previously solicited through magazine not newspaper ads, direct mail and Caesar, Jerome Kern, Vincent sell every day and does had issued and it was further make charts and is the kind of HI1111, HILO .. , so- called members' GAF Youmans, Sigmund Romberg claimed that night club Ian - the product, general, which is (get a friend) plan. and George Gershwin, among in Richard Chamberlain, MGM 13121 guage not intended for home the identified the basic cur- others. He was a charter mem- best sold by independent consumption was included in He catalog (Robbins, ASCAP) (New York) club offer as six LP records ber of ASCAP, a director since dealer. this album. rent Releases Cut (with suggested list prices of 1920, and served three terms as Gardner has just started a "We formerly released up to from $3.98 to $6.98) for $1.89 ASCAP vice - president, from FOOLISH HEART . , new contract with Capitol Rec- less MY connection with the buyer's 1950 to 1953. 400 LP's a year. Now it's ords where his first album re- in than 200 and it will be less Coral (Joy, ASCAP) $3.98 plus Among Harbach's credits are Demensions, 62344 lease there is now in production. pledge to buy six at year." Hartstone mailing and handing charges such standards as "Smoke Gets than that this (New York) His pact with Victor was ter- take this wide the following the in Your Eyes," "One Alone," continued: "To minated. during year to the public we offer acceptance. The "6 for "Gianinna Mia," "Rose Marie," list of product Damaged Rep "Love Nest," "Indian Love Call,' need a large group of retailers BOSS.,. In his action, the comedian $1.89" deal became the basis of "Cuddle Up a Little Closer" and who exercise independent asked 52 million in damages by for extensive questioning a Rumblers, Dot 16421 (Downey, WI) "Wildflower." He was the judgment and who perform reason of permanent impairment dealers in later testimony, in were asked author of such shows as selling function. (Seattle) and damage to Dave Gardner's which the dealers club has heard of this "Roberta," "Song of the Flame," "The Columbia reputation and ability to earn a if they had ever the number of of offer being made by "Desert Song," "Firefly," "No helped reduce livelihood." type "Sunny," these catalog dealers. The club I'LL RELEASE YOU , . any retailer. No Nanette," "Mary," He also asked for $250,000 "Kid Boots" and "Girl of My has helped saturate the market Vic- noted that there is Ted Taylor, Okeh 7165 (Four Star, for his benefit in that RCA Keating Dreams." for standard classical items. tor had profited from this mate- of no more of- 8M)) (DallasFort Worth) a basic restriction He is survived by his widow "The club's introductory rial. In addition he asked the one mono and one stereo Ella, his William and Rob- fers have been so wonderful "hurting than sons court for $750,000 for per family unit, ert, and three grandchildren. they would be hard for any- record sales with Capitol membership 60 HOME GIRL .. future this fact body to resist. Their price Records." though, he admitted, are is in the de- impact means the offers Arthur Atezando, Dot 16425 (Painted Gardner in addition asked the is not publicized. If an individ- the membership And when mem- linquent account category. snapped up. Desert, (MemphisNashville) court to judge in his favor $500,- turns out to be a record works by WI) ual 'Funny' Members bers accept standard 000 in punitive damages against in itself would Beethoven and dealer, that fact "We get a lot of Joe Stalins Tchaikovsky, Robert Yorke, RCA Victor Rec- as part of not bar him from membership, and Nik Khrushchevs coming in Brahms, for example, RIDILA' THE WIND . , ords a. &r. chief, for "malicious deal, they are said. On the question of in what we call funny enroll- their introductory action." According to the com- he of the market for those Tornadoes, London 9581 (Ivy (PRS), ments," Keating remarked, "and out plaint, Yorke had stopped the checking credit, Keating said a long time to come. we screen all those out. Then we works for ASCAP) (Seattle) promotion of his recordings in this is a continuing problem, Our classical sales today clearly that Continued on page 8 the North, maintaining since at least 10 per cent of indicate a condition of market Gardner had only regional ap- saturation for standard classics." SOMEWHERE , . peal in the South. Hartstone also noted that Files at Home Escorts, Coral 62336 (Schirmer, ASCAP) negotiations undertaken in 1959 The reason for having the London prod- (Pittsburgh) for distribution of action filed here in Biloxi, Gard- uct through the Columbia club ner noted, was that the come- were broken off by London "for dian is identified with the South The only club THE BOSSA NOVA WATUSI TWIST . , , legal reasons." Continued or? page 8 distribution ever to occur with Freddy King, Federal 12482 (Son)o, London, he said, was through BMI) (Memphis- Nashv)))e) Illydllll'l'd!I,",illllll'.ElP;hnllll'El:ll;l;l',I,'JI JIID.II'J''I'l'.IIIIIIICIIII the Diners' Club record club. Product for this was obtained DARIN SETS UP by the club front London dis- TRIBUTE TO BUDDY HOLLY .. tributors, not the company itself, he said. Commenting that the Mike Berry, Coral 62341 (No Publisher OWN DISK FIRM Diners' Club deal was a flop, Available) (Washington) HOLLYWOOD -Bobby Darin he described the club as having has set up his own production "no impact." company called T. M. Produc- In like manner, London's own MATILDA . .. tions to make masters. Firm will attempts at mail -order selling the Ron.Dels, Shalimar 104 (Longhorn, record new artists and lease through certain periodicals was masters to record firms. Capitol a failure and is BM)) (Houston) described as will have first option on the now being terminated. masters. Darin is now looking Artists Aware for both artists and material. He COMO relaxes at the Boca Raton Hotel in Hartstone noted that artists has already signed one artist, GRANDPOP PERRY clubs with copy of new Billboard. With Como is are very aware of record ALBUMS and expects to start his first ses- Boca Raton, Fla., questioned him relations director Al Glick of the resort hotel.