in amount-and I guess I persuaded the Governor to let UDC engage this process of social engineering, as some of its opponents call it. You had a taste of it in New Jersey in Mahwa. But your State government does not engage in it at all as far as I know. And it led to one horrendous political brawl. And when it was all counted, there was nobody running for office in Westchester County in 1972, including Mr. Nixon and Mr. McGovern, who hadn't made clear their opposition to that kind of thing. So that the Governor, Governor Rockefeller, he stands by the people he appoints longer and harder than anybody I have ever known. And he stood by me on this one. And finally, it was quite clear that, as somebody had warned him, that you don't have to sign this bill, Nelson, but they are going to catch Logue at the pass, they are not going to give him any more bonds. And that's what happened. Senator WILLIAMS. Thank you. Thank you, Mr. Chairman. The CHAIRMAN. Thank you very much, Mr. Logue. We will be happy to receive the pamphlets there and the opinion for the committee files. Mr. LOGUE. Mr. Chairman, one comment. There are two sections of the statute, I have memorandum of law on both of them and I would like to submit them. The CHAIRMAN. Very well, thank you, sir. [The memorandums referred to follow:] MEMORANDUM ON APPLICATION OF NEW YORK PUBLIC OFFICERS LAW 73 (~) TO CERTAIN GIFTS AND LOANS FROM NELSON A. ROCKEFELLER TO EDWARD J. LOGUE NOVEMBER 18, 1974 BERLE, BUTZEL & KASS 425 PARK AVENUE NEW YORK. NEW YORK 10022 (212) 838-2700 November 18, 1974 Application of New York Public Officers Law §73(5) from Nelson A. Rockefeller to Edward J. Logue I. Introduction The relevant facts concerning the purpose, amount, and dates of gifts and loans made by Governor Nelson A. Rockefeller to Edward J. Logue are set forth in Mr. Logue's statement, to the Senate Committee on Rules and Administration on November 18, 1974 in connection with Committee hearings on Governor Rockefeller's confirmation as Vice President of the United States. A copy of that statement is attached hereto. This memorandum reviews the extent, if any, to which New York Public Officers Law $73 (5) might apply to any of such gifts or loans. follows: New York Public Officers Law $73 (5) provides as "5. No officer or employee of a state agency, member of the legislature or legislative employee shall, directly or indirectly, solicit, accept or receive any gift having a value of twenty-five dollars or more whether in the form of money, service, loan, travel, entertainment, hospitality, thing or promise, or in any other form, under circumstances in which it could reasonably be 40-185 O-74-64 inferred that the gift was intended to influence him, or could reasonably be expected to influence him, in the performance of his official duties or was intended as a reward for any official action on his part. Section 73 (5) became effective January 1, 1966. A. III. Application to Rockefeller Gifts and Loans Mr. Logue was nominated and confirmed as President of UDC on May 24, 1968 and assumed his duties in that office on July 1, 1968. As such, he became subject to the provisions of $73 (5) by July 1, 1968 and, possibly, as early as May 24, 1968. As indicated in his statement, Mr. Logue received gifts from Governor Rockefeller of $5,000 on July 23, 1968 and $6,839 on August 26, 1968 after he had become UDC's President. It is also possible, though by no means clear, that Mr. Logue's receipt of interest-free loans aggregating $145,000 in May, 1969 (of which $45,000 was repaid in June, 1969) might be deemed to constitute "gifts" to the extent of some "imputed" interest figure. Since the loans themselves were evidenced by signed notes and fully collateralized, it is clear, of course, that the principal amounts of such loans would not qualify as "gifts" under $73 (5). the May 9, 1968 gift (made before Mr. Logue was an officer of UDC) come under the statute. Nor would C. Influencing Official Duties Under $73(5), a prohibited gift to a public officer must be made "under circumstances in which it could reasonably be inferred that the gift was intended to influence him, or could reasonably be expected to influence him, in the performance of his official duties or was intended as a reward for any official action on his part." (emphasis added). In the case of Governor Rockefeller's "gifts" to Mr. Logue, it is clear that they could not reasonably be These duties consist of carrying out the office of Pursuant to $4 (1) of the New York State Urban Development Corporation Act, the President is appointed by the Governor and "shall serve at the pleasure of the Governor." By statute, then, Mr. Logue served at Governor Rockefeller's pleasure (as he presently serves at Governor Wilson's pleasure) and, as such, reported directly to the Governor. Quite apart from any gifts, Governor Rockefeller was able to "influence" Mr. Logue's official duties simply by directing him to adopt a particular course of action and removing him from office if he failed to comply. In addition, since the Governor also appointed the Board of Directors and had complete responsibility for all executive legislative proposals and appropriation requests for UDC, he was in a position to exercise virtually |