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= 7 ~~ el UNITED STATES GQERNMENT “ . Memorandum TO” r. Miller: /# pate: May 8, 1974 | Be, , oe 1 - Mr. Miller Fram © R. E. Gebhardt ah oo 1 - Mr. Gebhardt = SO 1- Mr. Bates Lsberotery — Ws ining 1 - Mr. Cleveland | ps 1 - Mr. Walsh lpia Ra : Director Sec’y __ At 10:15 a.m. today I talked to SAC Bates concerning the amount of money the FBI should consider offering informants and potential informants for information leading to the solution, arrest and conviction of subjects - involved in this case. In contacting our informants in the past, the phrase "a considerable sum of money" has been utilized and Bates believes a figure of $25,000 has actually been offered on one occasion. This discussion took place in view of the developments relative to the reward consideration by the Hearst Corporation and the Hearst family. On 5/7/74 the Hearst Corporation in New York indicated its willingness to make available a considerable sum of money on a confidential basis for the solution of this case but desired to turn it over to the FBI and have it completely administered and disbursed by the FBI. This, of course, is completely unacceptable to the Bureau and as indicated in the memo of 5/1/14, we should not be placed in this position. Therefore, any funds " I emanating from the Hearst Corporation are no longer of consideration. On 5/8/74, Randy Hearst made public an offer of $50,000 to anyone ~~ who furnished information "leading to the safe return of Patricia to her family. " He makes no reference to the subjects involved. It is conceivable that someone having information that would lead to the safe return of Patricia to her family would also have information as to the location and apprehension of the subjécts; but, on the other hand, it is possible that such would not occur. In this connection, Bates advised Ben Swig, owner of the Fairmont Hotel in San Francisco, had offered to Hearst $50,000 for a reward as did an individual from Palm Beach, Florida. As yet Hearst has not accepted these two offers and after discussing the matter with Charles Gould, _ publisher of the San Francisco Examiner, it appears the Hearst family . is going to continue with the family's $50,000 reward for at least a a week © REG:mcw - ee mee ne ewe y (8) a ee et peceg 7 fe: CONTINUED. “ove 7 a ANT anc cag