Arthur Hailey - Evening News

Chippingham added, "Oh, another thing Chuck Insen told me: If it comes to a choice between him and you, he isn't going without a fight. He's threatened to take it personally to the top.”

"Meaning what?”

"Meaning he'll talk to Margot Lloyd-Mason.”

Crawford Sloane exploded.”Go to that bitch! He wouldn't dare!”

"I believe he would. And she may be a bitch, but Margot has the power.”

As Leslie Chippingham well knew.

* * *

CBA had been the last of the major broadcast networks to fall victim to what those in the business privately labeled "the invasion of the Philistines.”That was the description given to the takeover of the networks by industrial conglomerates whose insistence on constantly enlarging profits outweighed their sense of privilege and public duty. This, in contrast to the past when leaders like CBSs Paley, NBCs Sarnoff and ABCs Goldenson, while dedicated capitalists, were consistent demonstrators Of their public obligations too.

Nine months before, after failed attempts to keep CBA independent, the network had been swallowed by Globanic Industries Inc., a corporate giant with worldwide holdings. Like General Electric, which had earlier acquired NBC Globanic was a major defense contractor. Also like GE, Globanic's record included corporate criminality. On one occasion, following grand jury investigations, the company was fined and top-rank executives sentenced to prison terms for rigging bids and price-fixing. On another the company pleaded guilty to defrauding the US. Government by falsifying defense contract accounting records; a million-dollar fine was levied—the maximum under law, though a small amount compared with a single contract's total value. As a commentator wrote at the time of Globanic's takeover, "Globanic has just too many special interestsfor CBA not to have lost some editorial independence. Can you envisage CBA ever again digging deeply into a sensitive area where its parent is involved?”

Since the takeover of CBA, there had been public assurances from the network's new owners that the traditional independence of CBA News would be respected. The view from inside, though, was that such promises were proving hollow.

The transformation of CBA began with the arrival of Margot Lloyd-Mason as the network's new president and chief executive officer. Known to be efficient, ruthless and exceedingly ambitious, she was already a vice president of Globanic Industries. It was rumored that her move to CBA was a trial run to see whether she would demonstrate sufficient toughness to qualify as eventual chairman of the parent company.

Leslie Chippingham first encountered his new chieftain when she sent for him a few days after her arrival. Instead of the usual personal phone call—a courtesy extended by Mrs. Lloyd-Mason's predecessor to divisional president is—he received a peremptory message through a secretary to appear immediately at "Stonehenge, “the colloquial network name for CBA's Third Avenue headquarters. He went there in a chauffeur-driven limousine.

Margot Lloyd-Mason was tall, with upswept blond hair, a high-cheekboned, lightly tanned face and shrewdly appraising eyes. She wore an elegant taupe Chanel suit with a paler-toned silk blouse. Later, Chippingham would describe her as "attractive but formidable.”

The chief executive's manner was both friendly and cool.”You may use my first name, "she told the news president, while making it sound like an order. Then, without wasting time, she got down to business.

”There will be an announcement sometime today about a problem Theo Elliott is having.”

Theodore Elliott was chairman of Globanic Industries.

”The announcement's already been made,” Chippingham said.”By the IRS in Washington, this morning. They claim our king-of-kings has underpaid his personal taxes by some four million dollars.”

By chance, Chippingham had seen the story on the AP wire. The circumstances were that Elliott had made investments in what was now exposed as an illegal tax shelter. The creator of the tax shelter was being criminally prosecuted. Elliott was not, but would be required to pay back taxes plus large amounts in penalties.

”Theo has telephoned, “Margot said, "assuring me he had no idea the arrangement was illegal.”

“I suppose there are some who'll believe that, “Chippingham said, aware of the army of lawyers, accountants and tax advisers which someone like the Globanic chairman would have at his disposal.

Margot said icily, "Don't be flippant about this. I sent for you because I want nothing about Theo and taxes to appear on our news, and I’d like you to ask the other networks not to report it either.”

Chippingham, shocked and scarcely believing what he had just heard, struggled to keep his voice calm.”Margot, if I were to call the other networks with that request, not only would they turn it down, but they would report on the air that CBA News had attempted to arrange a cover-up. And frankly, if something similar happened in reverse, at CBA we'd do the same.”

Even while speaking, he realized that the new network head had demonstrated in a single brief exchange not only her lack of knowledge of the broadcast business, but a total insensitivity to news-gathering ethics. But then, he reminded himself it was public knowledge that neither of those things had brought her here, but instead, her financial acumen and an ability to create profits.

”All right, “she said grudgingly, "I suppose I have to accept what you say about the other networks. But I want nothing on our own news.”

Chippingham sighed inwardly, knowing that from now on his job as news president was going to be monumentally more difficult.”Please believe me, Margot, when I tell you as a certainty that tonight the other networks will use that piece of news about Mr. Elliott and his taxes. And if we don't use it also, it will create more attention by jar than if we do. That's because everyone will be watching to see how fair and impartial we are, especially after the statements by Globanic that the freedom of our News Division will not be interfered with.”

The network president's strong face was set grimly, her lips compressed, but her silence showed she understood the point Chippingham had made. At length she said, "You'll keep it short?”

"That will happen automatically. It's not something that's worth a long report.”

“And I don't want some smart-ass reporter implying that Theo knew about the illegality when he says he didn't.”

“The one thing I'll promise you, “Chippingham said, "is that whatever we do will be fair. I'll see to it myself.”

Margot made no comment and instead picked up a slip of paper on her desk "You came here in a chauffeured limo.”

Chippingham was startled.”Yes, I did.”The car and driver were one of the perks of his job, but the experience of being spied on—which had obviously happened—was new and unsettling.

”In future, use a taxi. I do. So can you. And something else. She fixed him with a steely glance.”The News Division's budget is to be cut by twenty percent immediately. You'll receive a memo from me tomorrow and 'immediately' means just that. I shall expect a report within a week on how economies have been made.”

Chippingham was too dazed for more than a polite, formal leave-taking.

The item about Theodore Elliott and income taxes appeared on the CRA National Evening News and the Globanic chairman's statement about his innocence was left unchallenged. As a Horseshoe producer observed a week later, "If it had been a politician, we'd have poured skepticism on him, then peeled away his skin like an onion As it is, we haven't even done a follow-up."

In fact, a follow-up was considered; there was sufficient new material. But during a discussion at the Horseshoe in which the news president participated, it was decided that other news that day was more important, so the follow-up didn't run. The decision was subtle; few, even to themselves, conceded it to be a copout.