@curiousjim
I know, as does everyone else, about the Heroin problem at that time. I just don't think one of the founders of Blue Note would pay artists in drugs. That's a felony. Why risk all he had built, by being in effect, a drug pusher. You pay them in dollars and let them find a 'source'.
The whole thing sounds like a tale told by someone trying to explain why their career never went anywhere.
I can just see some record company exe throwing a few 'bags' in front of Miles or Mingus as 'payment'.
Cheers