European Stars and Stripes (Newspaper) - May 12, 1989, Darmstadt, Hesse Friday May 12, 1989 the stars and stripes Page 7 ethics panel to intensify Wright probe Washington a the House ethics commit tee plans to dig deeper into the matter of a lucrative Texas Gas investment by House speaker Jim Wright As lawyers for the Texas Democrat seek to pare Down the list of charges already filed against the panel s chairman rep. Julian Dixon d calif., gave a Strong vote of Confidence to special out Side counsel Richard Phelan the Chicago lawyer who conducted the Long probe that so far has produced 69 charges that Wright violated House rules. Attacks on Phelan s professionalism by Wright s lawyers Are totally inaccurate totally wrong and an exercise in bad judgment Dixon said adding that he has total Confidence in the same time the Justice department expressed renewed interest in the Wright matter and in particular Wright s connection with Campaign contributions made in 1985 fora special Texas House election. The ethics panel met for 21/ hours wednesday and voted to make available to Wright s lawyers some wit Nesses and documents that have figured in its 11 month also directed Phelan to investigate further the Sabinc Lake Gas drilling venture which boosted Wright s Worth substantially last investment involves a Gas Well near the Texas Louisiana line which Wright and fort Worth Texas Developer George Mallick bought into for $9,120 last january. They sold their interest less than five months later for a $340,000 s defense team beefed up to include eight lawyers filed a new motion wednesday asking that the two most serious charges be dismissed because they arc based on faulty interpretation of House rules. The attorneys asked that the panel drop charges that Wright evaded House rules limiting outside earned income through bulk sales of a Book he wrote and that the speaker improperly accepted $145,000 in gifts from Mallick who was deemed to have had a direct interest in legislation before defense team member rep. Robert torn cell d n j., said House rules have grown outmoded and need to be revised. They arc dated time has passed Circum stances have changed and ethical standards have appropriately risen he said. But he said the ethics committee is seeking to apply those higher standards to Wight retroactively which is unfair to the speaker. Also on wednesday chief Justice department spokesman David Runkel said the department plans a review of Wright s business and political dealings once the House process runs its said such a review would cover matters brought up by the ethics committee and other matters that have been raised such As Wright s involvement in a 1985 political fund raising Effort in Texas. In testimony last week at a Federal fraud trial in Dallas Wright was linked to a political action commit tee that collected allegedly illegal contributions from officials of Commodore savings and loan an insolvent Texas Thrift. A witness said Wright was said to have promised to Block legislation seen As unfavourable by the so Industry in return for $250,000 in Dona Lions to the Pac. Wright has denied the charge. Saved from fire Tom avers Lefta sheriffs Deputy in Martin county Fronsoe from his burning Mobile Home in Jensen Beach fun and former firefighter Mike 1 Larrell carry Milton on wednesday. Fronsoe s wife died in the Blaze. Bail set for 4 in Jogger rape by new Day new York a judge granted bail on wednesday to four of the six suspects in the Central Park gang rape and attack Over the Sharp objections of the prosecutor who said bloodstains found on three of the defendants clothes link them to last month s rampage. Assistant District attorney Elizabeth cd crr said there was evidence that tics three of the rape suspects Antron Mccray 15, Steven Lopez. 15, and Yusuf Salaam 15 to the april 19 attacks on a woman Jogger and two male runners. But she did not say which victim s blood was found on the clothes of the three suspects. Acting state supreme court Justice Carol Berkman set bail at $250,000 Bond $50,000 Cash for Lopez and Kharey Wise 16, and $250,000 Bond $25,000 Cash for Mccray and Salaam. None had posted bail wednesday night. At his lawyer s request Berkman ordered Kevin Richardson 14, to undergo psychological testing to determine his fitness for trial. Attorney Peter Rivera who wednesday took Over the defense of Raymond Santana 15, did not make a bail application. The prosecutor said a witness not charged and not named in the indictments who was present at that crime accused several of the defendants of attacking the woman. Court sources identified the witness As a13-year-old youth questioned about the rampage but denied that he would be called to testify at the trials. All six rape suspects pleaded innocent to charges of attempted murder rape sodomy assault sexual abuse and riot stemming from the attack on the woman who recently emerged from a coma and two male runners. During the arguments Over bail the prosecutor graphically detailed the accusations against several of the defendants. Discussing the Case against Lopez cd crr said every other single defendant who is charged with rapine and assaulting that Young woman in Central Park Nas named Steven Lopez As a major participant in the she said that the other defendants alleged that Lopez first suggested let s get a female Jogger and let s rape in addition to striking the 28-year-old investment banker in the face with a Brick to Stop her screaming. Cd crr said Lopez ripped her Blouse off and pushed her Down that he had her by the legs and that he raped victim remained in serious condition wednes Day at metropolitan Hospital. Her doctors said there had been no significant change in her condition from tuesday. Her condition was upgraded monday from critical to serious. Doctors plan surgery to repair damage to her face May 17 if her condition remains stable. House committee re Emfs Bush s so bailout plan Washington a House democrats arc rejecting president Bush s Sav Ings and loan bailout Bill in a move that the administration contends May Force him to abandon his pledge of no new taxes. In the biggest Challenge yet to Bush s Campaign Promise to reduce the Federal deficit without new taxes the House ways and Means committee voted 25 11 wednesday to dump the $50 billions a bailout costs on the government s budgets for fiscal 1989, 1990 and 1991. The amounts would not count against the Gramm Rudman deficit limits according to the plan. An angry Treasury Secretary Nicholas Brady called the vote a mistake and said it could Lead to months of stale if adopted this action could Force us to go Back to Square one on both the budget and the savings and loan plan he said. This is not the Way either to lower interest rates or solve the savings and loan two republicans reps. Willis Gra Dison of Ohio and Raymond Mcgrath of new York joined 26 democrats in rejecting Bush s off budget financing scheme. The ways and Means alternative would swell this year s budget deficit by $9 billion or $10 billion and next year s by Between $22 billion and $25 billion. All the Money would go toward Clos ing or merging some 350 insolvent Thrift institutions that have lost an estimated $100 billion in federally insured deposits through poor and often fraudulent lend ing practices. This is the first step in ending the period of Ronald Reagan s Blue smoke and mirrors said the committee s chairman rep. Dan Rostenkowski d 111. Prior to wednesday s vote Brady met for an hour with committee members behind closed doors repeating a threat to recommend that Bush veto any so plan that without a lax increase or spending cuts elsewhere would raise the deficit. Bush s proposal gets around the requirement by borrowing the $50 billion through a new off budget government corporation and including Only inc $3.5 billion in in Crest costs As part of Federal budget for the next Ihrck years. Senlac democrats bowed to a similar threat last month rejecting an alternative proposed by its banking committee chairman. Sen. Donald Riegle d-mich.,. To put the entire bailout s Cost on this year s budget. The ways and Means committee meets again on May 18 to affirm its vote formally before the Bill goes to the full House on the following week. But Rostenkowski said he Hopes his panel will not reopen the . Charles Schumer d-n.y., an Early proponent of including the so bailout s costs in the budget said the committee s action wednesday has breathed new life into a once abandoned Effort to Force Bush s the administration s plan and the alternative separate the Cost of cleaning up the so mess from the Gramm Rud Man Law which requires a reduction in the Federal deficit to less than $100 Bil lion for the next fiscal year beginning in ways and Means measure allows the budget deficit to swell $50 billion Over that time but exempts it from the official Gramm Rudman target deficits of $136 billion this year $100 billion in 1990 and $64 billion in 1991
