ustxtxb_obs_1975_08_22_50_00003-00000_000.pdf

The Glenn connection $11,000 worth of enthusiasm? Dallas During the spring and summer of 1972, Glenn Public Relations and its suppliers did approximately $11,000 worth of work for the Dolph Briscoe campaign. The work was billed to Lomas and Nettleton Financial Corp., Jess Hay’s company. Sissy Farenthold’s attorneys learned of these transactions in December of 1974 when three former employees of Glenn PR went to them with some documents concerning the 1972 transactions. All three people gave affidavits to Needham and O’Rourke. The Observer has talked with two of the informants and seen affidavits sworn to by one of the three. The source whose affidavit we saw agreed to talk for publication, but she asked that her name not be used. The second source confirmed the first source’s story, but would not allow his comments to be printed. The woman went to work for Glenn PR in May of 1972 as a secretary/bookkeeper. Glenn PR is associated with the larger Glenn Advertising Co. \(now Glenn, Bozell, by Glenn Advertising and Dave Crellin, the top man at Glenn PR. In 1972, Glenn PR’s most important client was Lomas and Nettleton Financial Corp., mortgage bankers. Jess Hay, now a national Democratic committeeman from Texas, is chairman and chief executive officer of L&N. In 1972, L&N did approximately $300,000 worth of business with Glenn PR, and that accounted for more than half of Glenn PR’s net profit for the year, according to our source. JESS HAY was a heavy in the 1974 re-election effort, but in the spring of ’72 he was just getting involved with Briscoe. In his deposition in the Farenthold suit, given in October of 1974 before the Farenthold attorneys learned of the L&N allegations Hay said that his wife got him interested in Briscoe: “I was really inspired by my wife’s enthusiasm positive enthusiasm for Dolph Briscoe and by her general revulsion I guess is a good word with the political situation in Texas to become active in a neighborhood or local way in what I have since called the People’s Campaign for Dolph Briscoe.” Hay worked with his wife on some local Dallas efforts for Briscoe during the first primary. And then, Hay said, “shortly after the first primary, I was asked by Governor Briscoe and by Calvin Guest, who was the campaign manager, to provide assistance to them in organizing a statewide finance effort in behalf of the campaign the runoff and the general election which I did.” What were his duties? Farenthold’s attorneys asked. “Well, I didn’t have a job description as such, but in general I undertook the task of organizing the financial effort with respect to the campaign and organized subcommittees in Dallas, Fort Worth, Houston, Corpus Christi, and, well, I think those were the main areas, but other activities were going on in Amarillo and other places. But, basically to raise sufficient money to cover the cost of the runoff and the general election, and then, hopefully, to cover a deficit which had accrued in the first primary, which totalled, I think, something in excess of $600,000.” Glenn had no major role in Briscoe’s 1972 campaign. The bulk of his advertising work went to an out-of-state firm. But Briscoe did turn to Glenn Advertising to handle many aspects of his campaign in 1974. Liener Temerlin, one of Glenn’s top executives, was present at the important Aug. 29, 1973, strategy meeting on fundraising in Briscoe’s office. \(In 1968, when Eugene Locke ran for governor, Temerlin served as the advertising account executive for the Locke campaign. Jess To return to Glenn PR: in May of 1972, the secretary/bookkeeper had just arrived and she was put to work typing up billings. In her affidavit for the Farenthold attorneys, she said, “I became aware that Lomas and Nettleton Financial Corp. was paying for Dolph Briscoe’s campaign expenses through their business account with Glenn Public Relations. This was done through the practice of billing L&N Financial Corp. without supporting invoices for work done by Glenn’s suppliers for the Dolph Briscoe 1972 campaign. The code name under which this was done was the `L&N Program’ and was billed on the client statement as miscellaneous printing, design, photographs, artwork, etc. “At first I questioned the billing procedure to L&N Financial Corp. for this work, as I thought it improper. But upon the order of David A. Crellin and John Stone, I then sent out LNFC statements which included work for `L&N Program’. . To my knowledge, this condition occurred from at least February, 1972, until August, 1972.” The secretary told the Observer that the practice was general knowledge at Glenn PR and that many employees were uncomfortable about it. “We used to joke about it at the office that we were gonna go to jail for doing this,” she said. As supporting evidence for these allegations, the three former employees took with them to Needham and O’Rourke copies of some of the bills and also informal office memoranda that were attached to the bills given to the secretary to type up. The Observer saw copies of some of the notes, which said things like, “These are hidden bills” or “These are L&N Program” or “These are Briscoe bills to be hidden.” \(Copies of these same documents were given by the Farenthold and Hay attorneys to Atty. Gen. John Hill and Dallas DA Henry Wade see accompanying story for details of those signed were signed by other employees of Glenn PR. The secretary told the Observer that she presumed that the higher-ups at Glenn Advertising knew what was going on and she presumed that Glenn was “doing it as a favor to Jess Hay.” But she does not have any first hand knowledge that Jess Hay or Liener Temerlin or any other executive at Glenn Advertising knew what was going on with the L&N billings. Jess Hay’s lawyer Bill Brice learned about these allegations only a few days after the Farenthold attorneys got onto them. \(Brice first suspected that they were checking out something at Glenn when one of Glenn’s subcontractors called and left a message for a Farenthold attorney while he Meanwhile, Phil Edmundson of Needham and O’Rourke was out in the field interviewing various former Glenn PR employees. One of the people he contacted promptly called Jess Hay and told him what was going on. Hay called Brice and, Brice told the Observer, he got busy right away and had L&N do an internal audit. The audit didn’t tell him much, so he then asked Glenn to audit its books so that he could get to the underlying billing records at Glenn. Meanwhile, Brice said, he was also questioning employees at Glenn PR. He took two affidavits from John Stone, the L&N account executive at Glenn PR. According to Brice the second affidavit, given on Jan. 8, 1975, explained the whole complicated mess to his and Hay’s satisfaction. FOLLOWING is the story that John Stone swore was true. “In the early part of 1972, Mr. Hay and Mr. Charles Purnell, an attorney with the firm of Locke, Purnell, Boren, Laney & Neely, contacted me about a dinner then being planned for Dolph Briscoe who was campaigning for the nomination of the August 22, 1975 3