Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-02-26
Continued From First Page

he asked Mr.. Mack only to give
National AirlineS "considera-
tion," and Endorsed the high
character of the company's
officials.
Mr.. WhiteSide maintains he
refused to accept fee, and
therefore was not employed as
an attorney in the case. The
FEC last year awarded the
Miami channel to Public Serv-I
ice Television, Inc, the Ma
tional Airlines subsidiary, re-
versing a hearing examiners
recommendation in favor of Col.
A. Frank Katzentine, a Miami
Beach broadcaster.
In a full morning of inter-
rogation, Mr.. Wolverton tried
to unravel Commissioner
Mack's complicated dealings
with a company that insureS
Public Service Television, Inc.
Mr.. Whiteside has testified
that he gave Mr.. Mack a one
sixth ownership of the Stem
bler-Shelden Insurance Agen-
cy, Inc, and that Mr.. Mack
has received more than $4,000
from the company.
No Written Records
Questioning today made it
clear that there is no written
record that Mr.. Mack owns
stock in the company Mr.
Whiteside said the commits
sioner'S stock is held in trust
by w. Y. Stembler, president
of the company, under an oral
agreement.
Some members of the sub
committee apparently suspect
the insurance company is a de-
vice to pay Mr.. Mack money
with which he can repay some
$3.50 borrowed from Mr.
Whiteside.
Mr.. WhiteSide has denied
charges that $3.50 he has adj
Vanced to Mr.. Mack since his
appointment to the FEC con-
stituted a payoff for the COM
missioner's vote for National
Airlines. He maintains the pay
ments were ordinary loans"
Mr.. Whiteside was unable to
satisfy Mr.. Wolverton on rea-
sons for the oral trust ar
rangement. He said Mr.. Mack's
ownership Of the stock is real,
although Mr.. Stembler retains
voting rights.
Sees Influence Background
Remarking that Mr.. White
side has been Mr.. Mack'S fl
nancial angel" and close friend
for many years, Mr.. Wolverton
suggested that there is a back
ground of influence on your
part with Mr.. Mack that is
even stronger than any moneys
that may have passed"
The New Jersey Representa-
tive said this influence may
explain why you were sought
after" by both sides in the
battle for the television license.
MI. Whiteside estimated the
Stembler Sheldon agency col
lects S750,000 to 81 million a
year in gross premiums, and
keeps about II or 10 per cent
Of that sum in commissions.
Chairman Harris charged
yesterday that Mr.. Mack's
financial interest in the insur-
ance agency violates the Fed
eral Communications Act.
Gets 2 New Accounts
Mr.. Whiteside said Mr.. Mack
has brought the agency no new
business since joining the FEC.
He added that the company ac-
quired two insurance accounts
from companies regulated by
the Florida Railroad and Public
Utilities Commission while Mr..
Mack was a member of that
body.
One of these accounts, Mr..
Whiteside said, was from a
trucking company. and the
other was from a gas utility.
He said he directed the gas
utility account to Stembler-
Sheldon.
Public Service Television,
Inc, insured itself with Stem
bler-Shelden after getting the
Miami TV license, but Mr..
Whiteside said Mr.. Mack had
nothing to do with getting this
account.
He said Col, Katzentine at
first threatened, and then cam
celed his insurance with Stem
er-Shelden unless Mr.. White