The 51st State; 285

[background speaker fades out] "[speaker 1]: We'll okay, Thank you. I'm glad you told me. ?inaudible? Page 10 on camera 2. Page 12 on camera 1." "[background voice]: Right?" "[speaker 1]: Page 14 on camera 3? "[background voice]: Yeah." "[Host]: We begin a 4 part series on the way society deals with children in trouble. But first, a look at today.

This was a day of money. Of illegal money, of legal money, of ?inaudible?, of more inditements. It was just another one of those ordinary days for Special State Prosecutor Maurice ?Nejari?. He announced the inditements of 3 more persons. The 3 time were New York City detectives. They are charged with bribery and conspiracy. According to Mr. ?Nejari? they accepted as much as much as $3,000 in bribes from cigarette bootleggers, back in August of 1971. These inditements bring to a total of 47, the number of inditements that have been handed down as a result of Mr. ?Nejari's? work. As he's been on the job only about a year. This means he's been on almost an inditement a week schedule. Of course, the river in New Jersey sits ?doings? are hardly new. But ?inaudible? today was the states decision to get even. It brought a suit in federal court against 186 firms. And it charged with giving kickbacks and with illegal bidding practices over the past 14 years in Hudson County. Some of the defendants are some of the states biggest fans. Such firms as Abbott Labs, Johnson &

Johnson, AT&T. How do you get money legally? Your a public official, times are tough, prices rise, baby needs shoes... some of New York City's officials got together today on an idea. 51st state metropolitan editor. Robert ?San Ansen? has the story. "[Robert]: The city council, tonight, is doing what politicians seem to do best. Deciding wanting to give other politicians a raise. And it is a big one. A proposal for a $10,000 across the board increase from members of the Board of ?Vesitment? The idea for a raise comes from the Board of Presidents, who of course, are numbers of the Board of ?Vestiment?. Earlier this evening the council referred the proposal to committee. If the numbers are approved, Mayor ?Beane?, when he takes office, will be taking home 60,000 per year. A ?inaudible? presidents, of course, will also get a boost. That means for Bob Abrams, a total of $45,000 per year. For Percy Sutton, $45,000 per year, for Donald ?Mannis?, $45,000 per year, for Bob Connor, $45,000 per year, and for Sam Maloney, $45,000 per year. Paul McGuire, the new president

of the city council and then ?inaudible? liberal, he'll be taking home $50,000 per year. Jay Golden, the newly elected ?controller? and a man who was elected on a platform of watching after the people's money, will also be making $50,000. It's all quite legal, of course, and Mayor Lindsey will still have to approve everything before it becomes ?inaudible?. Just incase however, the city council, tonight, was taking no chances. It was holding its meeting in secret." [New speaker]: ?inaudible? "[Speaker 2]: Wil some public officials make money that is, by leaving government?" "[speaker 1]: One of the ?inaudible? financial success it seems, is to work for the city as a housing aid, as a top housing aid. Yesterday, that the- the 7th top housing aid with the Lindsey administration announced that he was leaving to go to work for the real estate interests at all- presumably a large salary. Earlier, of course, Albert Walsh was head of ?HRA?, left to go to a real estate firm for $75,000 a year." "[speaker 1]: What does the board of ethics say about this?" "[Speaker 2]: Well, the- they don't say I have a lot on the record and they're quite distressed about it but it's understandable. According to one uh, that- member of the board that I talk to today, he said, 'listen the bees

go where the honey is." [music] "[Speaker 3]: Museum of Modern Art. Color it angry. Striking staff members have been back on the job for 9 days now but there doesn't seem to have been any binding of wounds. On the contrary. Anita ?Isler? has the report." "[Anita]: No reprisals against any striker. That was one of the key agreements in the new contract between the museum and the bargaining unit. But today, former strikers told the 51st state that there have been reprisals already. One in the form of a firing another in a first warning. 2 and you're out. The grounds? What the museum calls insubordination. Other complaints include segregation of bargaining unit members from nonmembers in the museum bookshops and failures to provide the union as agreed in the terms of the contract with an agenda of tomorrow's meeting with the board of trustees. ?Inaudible? in the first meeting since the

strike, director ?Oldenburgh? on the bargaining unit, union members claimed to receive the message that Mr. ?Oldenburgh? wanted no further direct communication with his staff. All problems are to go through a grievance procedure. Director ?Oldenburgh? could not be reached for comment." [music] [music] [music] [music] [music]

[music] [music] "[new speaker]: sprayed gasoline on the woman, lit a match, and she burned up to a crisp and her apartment went." "[another speaker]: Wow, she burnt to a crisp." "[past speaker]: She burnt to a crisp." "[the other speaker]: She lived for about a week before she died."

"[host]: This 14 year old is being held for murder. He is the smallest statistic in a growing crime phenomenon in New York. And so are these teenagers, booked for robbery at the ?inaudible? Juveniles Center in the Bronx. More and more children like them, kids below the age of 16 are committing felonies of violent crimes." I know, I know. I didn't like ?inaudble? last time, what are you doing here again? "[Host]: Today, juvenile crime or serious violations by youngsters below the age of 16, is

rising at a frightening pace in the city. Last year, arrests increased by 21 percent. At the same time, adult arrests actually declined by more than 6 percent. And during the last 3 years, arrests for children for murder have more than tripled. In 1970, a total of 19 youngsters were picked up for homicide. Last year murder charges were filed against 73 children and that gruesome record may be broken this year when the final police statistics are compiled." "[new speaker]: If you're in here for armed robbery and you've committed several crimes, Why do you think there is so much violence among 14/15 year old kids, teenagers today?" "[new speaker]: Trying to get to the top where everybody trying to be somebody that they really aren't, you know? Cuz they feel this is the you know, quick way to make money. You know, quick way- you know, uh, to- have a reputation to be known

by everybody. And this is why they goin' to robbing, killing, stealing, and you know, so forth." "[Host]: ?inaudible? ?inaudible? commit violent crimes. ?inaudible?" "[Host]: 11,000 children will go before the bench because they have been accused of crimes or repeated misbehavior. Anyone not formerly charged with a crime is labeled a PIN. A Person In Need of Supervision. PINs can become court statistics because they are runaways, truants, or simply unwanted by their families. There are no jury trials in New York's family court. Each child, whether he is a PIN or a delinquent, entitled to legal counsel. In addition, as many as a dozen government or private agencies

can get involved in a case before a decision is reached. The final ruling rests with 1 of 39 family court judges. Yet many of these judges come to the bench with little background for understanding the complexities of ghetto teenagers. And black and Puerto Rican children make up 90 percent of the court's calendar. All judges are appointed by the Mayor. Their designations, however, often are based more on political pull than a knowledge of juvenile justice. This combination of heavy caseloads and poor administration has apparently transformed the juvenile court system into a bewildered legal dinosaur, unable to cope with teenage crime." "[new speaker]: When I first went to court the ?inaudible? I didn't know what was going on at all. I know all these people start coming in and um, my lawyer told me he was my lawyer, was asking me a lot of questions and this lady was running over here ?inaudible? I was sitting there like I was an outsider. I didn't know what was going on on." "[new speaker]: I was really scared, I was terrified, you know, standing in the court room you know,

the judge looked like he had no feelings whatsoever, you know, he was ?inaudible? you know, he was ?inaudible? walked in and started talking to my mother. He didn't ask me nothing about myself, you know, it was just my mother ?inaudible? doin' all the talking. It seemed like they both were against me at the time you know, neither one of 'em wanted me back out on the streets. They say I was destructive and all that. ?inaudible? you know, so he just told me that I have a new ?inaudible? at this spot ?inaudible?." "[Host]: The public as well as reporters and cameras are ?barrowed? the confidencial ?inaudible? of family court. But our film crews were permitted inside the ?inaudible? juvenile center in the Bronx. ?Inaudible? in effect is a miniature tomb or prison. Some 7,000 boys and girls will be detained here this year." [inaudible background chatter] back in July. August, you ran off again. What are you trying to do? ?inaudible? "[Host]: Youngsters and those who are, will only stay more than a day or two. Most of these children have

been accused of crimes like robbery, assault, prostitution, and even murder. They can be confined to here for months, until a court decision can be made." "[?inaudible speaker?]" "[Host]: Majority ?inaudible? school records. And are years behind in reading ability. But for the average state it's 2 weeks. There is little that can be done in the way of organized, long-term educational programs. Life at ?inaudible? revolves mainly around the locked in dormitories. And its the dormitory counselors that have the closest contacts with the children and their problems." [indistinct chatter]

"[Host]: In the late 1960's ?inaudible? came under frequent attack for committing such abuses as child beatings,

overcrowding, and homosexual attacks. In recent years, the city has made a major effort to to improve conditions for an investigation of drugs, inside ?Spofford?" "[speaker]: The ?inaudible? ?Spofford?, you know, covered ?inaudible? usded to come in in the mornings and um, you know, I would know that they was, you know, had some kind of a high. And what I noticed with a few of them- I would notice track marks on their arms. And um, you know, ?inaudible? either one I would notice him, you know, um, nodding off some, well thats how I picked up that ?inaudible? using drugs ?inaudible? you know it is a chance they could hid it from some of the supervisors and um, you know the other people in ?inaudible? there because you know, ?inaudible? i picked up cuz I knew what was happening, you know, I knew when I- you know,f see them nodding that, it wasn't just from tiredness. And I knew when I seen the track marks on his arms. That's the only way I think that they coulda picked it up they ?inaudible?

It wasn't really, you know, happening to me if I did wanna think about you know, goin' ?inaudible? using drugs." "[new speaker]: ?inaudible? children, ?inaudible? sold 'em drugs and liquor. Then I never ?broke my attention? ?inaudible? question, most of the time or all of the time the children um, are with 2 or 3 councilors at a time and something like that could be covered up here." "[new speaker]: Your mother brings you money that the councilor not aware of, you know, you could say to the councilor, 'I want some soda or some whiskey or some wine, even some drugs', you know, he'll buy it for you provided you give him something. "[new speaker]: The councilors will buy you whiskey, or they'll buy you drugs and smuggle it in for you." "[previous speaker]: Yeah." "[new speaker]: Did you ever have whiskey or drugs smuggled in?" "[delinquent] I had me a pint of whiskey." "[interviewer]: Whiskey? How much did you pay for it?" "[delinquent]: It cost me around $4

in the store, but I had around $30 on me that my mother gave me, and that was supposed to be for- turned into the councilman. I didn't, you know? It cost me around $20 for that one bottle." "[interviewer]: One bottle of whiskey? A councilor sold it to you?" "[delinquent]: Yeah, he more or less manipulated me to give him all that money. If you have money in ?Spotford? that's everything." "[Host]: ?Spotford? ?inaudible? privately confirmed reports of beatings, drug use, and wide spread tension. These councilors however, were reluctant to be filmed because of possible job retaliation. Perhaps because of tense conditions, many counselors seem almost indifferent to much of what is going on inside ?Spotford?" "[new delinquent]: My first ?inaudible? I was frightened and I ?inaudible? ?Spotford? uh, they had people way bigger than me there. And they had sexual problems at ?Spotford? too." "[interveiwer]: What kind of sexual problems?" "[delinquent]: Uh, homosexuals in there, they had faggots and gay people in there. And they had what they called a ?banger? party at night. When the councilor be out front, you know, ?inaudible? in their room you know, they would just throw a blanket over your head and you wouldn't know who was beatin' on you. Some time people got hurt. You ?inaudible? in that place. ?inaudible? Right. You know? Just for the fun of it, you know? But we didn't really think it was fun. This was all- all the things that we was dealing with at ?Spotford?, you know?" "[new (female) delinquent]: Some girls were there for prostitution. Some were there for drugs. Some was there for ?inaudble?. I was ?inaudible? when I ?inaudible? but I was pushed into a ?inaudible? criminals life. ?inaudible?." "[host]: ?inaudible? 2 of the series on criminal

justice. We'll see what happens to youngsters sent to upstate reform schools. And, we'll hear a 14-year-old ?inaudible? about murder he committed. [music] [weather forecast] [music fades out] "[host]: ?inaudible? like ?inaudible? and the Internal Revenue Service is a big, fat, juicy, tempting target. ?inaudible? to take a shot at is ?Manhattan's Senator? Andrew Stein. Stein serves as chairman of the st- temporary State Comissioner on ?inaudible? and the economy. According to Stein, he says, ?inaudible? has made him $25,000,000 And in 1969 I was little.

Concerned about the responsibility Ian ?inaudible? gave that responsibility to the Blue Cross. I think the State Health Department was at fault for giving up responsibility to the Blue Cross. But, in fact they did. Now, Blue Cross really has uh, a terrible audit system where they'll have a ?inaudible? meaning, one individual." "[host]: Lemme interrupt you a minute uh, Mr. Stein, to ask you the impact of the failure in your view, of Blue Cross adequately to- to be audited ?at the audited self? as well. Does is increase uh, health cost for the public? Is that what you are saying?" "[speaker]: ?inaudible? the hospital so poorly as was shown in the news. A report by Haskins&?Sills? which is a reputable auditing firm which Blue Cross themselves asked to be done, to see what their procedures we're like. Their- their pro- their auditing procedures are so inadequate that in fact, we really have no idea how many millions of dollars are being lost.

But we see things-" "[host]: What I'm getting at- the loss of- of this money though, uh, Mr. Stein, is- I assume what you're saying is reflected in higher health cost to the public?" "[Stein]: It's reflected in 2 ways, Jack. It's reflected in higher premiums for Blue Cross premiums, it's also reflected in higher hospital costs." "[host]: Right. Now let me ask Mr. ?inaudible?. Mr ?inaudible?, you're sitting here in the seat of the accused, so to speak. Do you provide adequate auditing procedures ?inaudible?" "[Mr. ?inaudible?]: Yes, I do. I think the report that ?assembleman? Stein is referring to is a a highly technical report. It speaks for itself. I think, ?assembleman? Stein forgot to tell you that the report concludes the work was done satisfactorily." "[host]: Now he has charged that you have made 25 million dollars in questionable payments. He's charged furlough at the furlough Blue Cross to audit hospitals and to be audited is reflected in both higher premium cost to the public and higher healthcare costs. Is that right or wrong?" "[Mr. ?inaudible?]: It's wrong. The technical nature of the report, the fact that it

deals with a very complex side to a highly technical industry probably lead ?assembleman? Stein's ?inaudible? in to some misjudgments perhaps. Uh, mistakes? I don't know how to categorize it. I I know one in particularly that disturbed the accusation of Blue Cross payments to a specific hospital increased by more than 2 million dollars in a given year. That simply is not so. But the report doesn't say that it's so." "[Host]: Mr. Stein is this a technical report? Have you misinterpreted it?" "[Stein]: Well, not misinterpreted it ?inaudible? I think that any huge industry always defends itself by saying, 'we're too technical' for the audit person to understand. I have hear a bill that I don't think the gentleman uh, would deny that was paid by Blue Cross. It is a party given uh, at the Royal Tropicana his restaurant from the ?inaudible? Hospital, a hospital in the- in the Bronx. A 96-foot hospital. Um, and the total bill is $1,354. Uh, now, the point is, uh, this is for- for- for-

80 people. It was supposedly be for- for entertainment. The point is the system is so bad that this was never even questioned." "[host]: Alright, well, let me question it right now. Lemme question ?inaudible? Mr. Stein who been appointed to this position by Governor Rockafeller who is a defender of private insurance programs. Now, how do you think we're going to get any meaningful reform ?inaudible? uh, ?inaudible? legislature but ?inaudible? Governor, who has traditionally and forever uh, ?inaudible? regulation of private insurance companies?" "[Mr. ?inaudible?]: Well, I- I can't speak for the Governor, Jack. Uh, I told the Governor when I took this job that I would do it uh, as the best I see fit and- and- and- and- uh, solve the problems the way I think they should be solved and he assured me that he he would- would- would- would listen to my recommendations." "[host]: Let me get Mr. ?England? get one final word in here. Now, do you think that uh, the public is adequately served as it is? Is there. an effective audit that Blue Cross or the hospitals?" "[Mr. ?England?]: Jack, we live in a goldfish bowl and we have lived in a goldfifth- goldfish bowl for a number of years. We are audited

by 7 different agencies. 3 federal, 3 state, and 1 independent certified public accounting firm. If ?assembleman? Stein wants to add an 8th or a 9th he's welcome. They can start tomorrow. The ?H.E.W.? audit agency is presently going through our books on behalf of medicare. "[Host]: Im sorry, now that is all the time we have. I want to thank you very much uh, for being with us. Now that's it for tonight. Tomorrow, we go upstate to see youngsters confined in reform schools up there and now continue to look at the criminal justice system. Now, for 51st State, I'm John ?Hellevin?, goodnight." [music] [music]

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