by John Babcock
Native North Carolinians are an exclusive breed. Wherever they spend their life, whatever their career, they never abandon their roots to their home state. Roy Park spent more years in rural New York than he did in the South. But binding personal friendships, close business ties, political bonds—none of them had the warmth North Carolinians and Southerners in general have for one another.
Sitting across from his desk, as I did for thousands of hours over the years, I witnessed countless phone conversations between Roy and those who called him. Where most powerful businessmen take refuge behind screens of interceding assistants before picking up the phone, Roy listed his home phone and business numbers prominently and was as likely to answer the ring himself as to rely on a secretary. If the call originated from North Carolina, his demeanor softened. He would settle back in his stately leather chair and slip into a soft Southern welcome for his caller.
Be it the governor, an ex-governor, a college president, a business tycoon or maybe just old “Pea Vine” who wanted to talk about Roy’s television station, the conversation oozed with first-name familiarity. They were all Good Ole Boys, and if they were flatterers they had an even greater edge. One southern boy really had Roy’s number. This talented salesman flattered Roy to a degree that was disgusting to others on the station staff and to us in Ithaca. Roy loved it and boasted about the salesman’s ability. It wasn’t long till he was promoted and became Roy’s main contact at the station. He avoided the regular reporting channel through my office. I was never close to him and over the years had never been invited to his home, though I was a frequent visitor to the homes of other key employees. One jealous staffer let me in on the real scoop. He hinted that his boss acquired almost 100 percent of his furniture and personal items at the expense of the broadcasting station. Here’s the way it worked: Business clients buy commercial messages sold by broadcast station salesmen. The Federal Communications Commission requires that accurate and notarized records be kept for each and every commercial (spot) aired and logged by the station. As each spot is performed and verified, it is recorded and billed to the client at a contracted sales price. Some spots may be run at no charge, such exceptions brought about by technical failure in performing the spot, management granting a “bonus” spot to settle a viewer complaint, or in servicing a trade-out.
Trade-out was the culprit here. Almost every station acquires furniture, vehicles, equipment, even meals at a restaurant, with advertising schedules priced to compensate for the amount of goods or services received. It is a common broadcast practice to save cash expenses and at the same time get some value out of otherwise idle airtime, the station’s sole product. An automobile dealer may trade out a car for a given dollar total of advertising spots. He gets “retail” or more for the car, and the station is spared a heavy cash outlay. Everybody’s happy.
That is, until skullduggery enters the scene. Our internal auditor discovered a large number of ads for one auto dealer described as “bonus,” “make-good” or simply “no-charge.” A friendly bookkeeper at the car dealership was carrying these same spots on his books as payment for one of its luxury cars. Where was the car? It was registered to the employee’s wife! Further audits revealed that over time, this man had furnished his home, paid for personal entertainment, clothing, cars, etc., at the expense of Roy’s station. False and illegal affidavits paved the way to my firing our fallen star. Without admitting any embarrassment or chagrin, Roy ordered that each and every trade for radio and TV advertising had to be preapproved by him personally, with written proof that the value received went to the station, not an individual. This was a detailed and messy chore, but recall that it was undertaken by an owner and CEO who already personally approved every salary increase for every employee, be it as small as $5 a week.
Controlling commercial advertising traffic on our stations achieved new prominence, though it had escaped Roy’s eagle eyes these many years. Like cash boxes at a newspaper, it was just one more attraction for thievery that had to be tested and monitored. Roy actually enjoyed digging into such detail. He trusted no one 100 percent. He also learned in the course of improving controls that being a Good Ole Boy was no rock-solid guarantee of honor and honesty.
Flattery can dull the instincts of many powerful people.
Perhaps Roy’s instincts were more reliable when it came to acquisitions and balance sheets.