APest 4 Oct 73

Mitchell Testifies in Texas Fraud Case

By Gayle McNutt partment's investigation of the before Wilson resigned from mission was probably going to gOebial to The Washington P Shar case because he had the Justice Department he bring' tments against Carr for • y4,been .Sharp's attor- DALLAS, Oct. 3—Formeri ney; as the subject of a Jus- had made the suggestion that goy rig-40 or 50 alleged vi- Attorney General John N. tice Department "executive in- any indictments against Carr olations. Wilson recOmnie.nded Mitchell today testified that quiry" during the summer of be handled cautiously. Gray temperance in indicting Carr 1971. The inquiry was directed said he was surprised that Wil- rather than "heavyhanded he met twice with President by L. Patrick Gray III, at that Nixon in 1971 to discuss the son would "bring up his en- multi-count indictments," time an attorney in the civil mity" toward Carr in connec- involvement of then-Assistant Gray testified. - Division and later acting FBI tion with the case, especially "He (Wilson) said there was Attorney General Will Wilson director. ,2_ ou when Wilson asked him not to no point in kicking an individ- with a key figure in a Texas Gray,•another' witness here reveal the conversatiqn. ual when he is down (and Tuesd#, backed up the state- Gray said he determined that) because Mr. Carr had a stock fraud scandal. ment by Mitchell that the At that time Wilson, a one- that it was necessary to report large following in Texas, his White House interest in the Wilson's statements to Rich- indictment- could hurt the time , case was only to keep the. ard G. Kleindienst, then dep- President," Gray said. was chief of the Justice De- President from being embar- uty attorney general, and He said that was the only partment's Criminal Division. assed. Mitchell in the course of his conversation he had with Wil- Before accepting the Nixon Major controversy had been executive inquiry. Gray said son concerning political rami- appointment, Wilson had be generated in Texas atrout a copies of his reports about Wil- fications of the case. the attorney for Frank Justice Department deeis' son also went to White House Gray testified as •far as he Sharp, Houston financier and to allow Sharp to plvd guilty counsel John W. Dean III, on knew Dean's only interest in central figure in a stock and to two federal violations—for ' instructions from Mitchell. the case was to keep up with banking scandal that involved which he received a sus- Gray said that Wilson told the facts about a possible a number of leading Texas pended. five-year prison term him he had learned that the scandal involving a Nixon ap- Democratic officials. Securities and Exchange Com- pointee. Mitchell said he and Mr. —and then received -a full N:xon met about July 1, 1971, grant of immunity in return and again about Oct. 1, to dis- for his testimony against oth- cuss the increasing publicity ers, especially Democratic of- about Wilson's involvement ficeholders. with Sharp. Mitchell said that Mitchell said he was made he and the President decided aware of the involvement of at the second meeting that it public officials, but except would be necessary for Wilson from newspaper reports could to resign. The resignation was not remember how he got the turned in later that month. information. Plitchell, who resigned as "It seems to me that the Attoieny General to direct names involved were the gov- Mr. Nixon's 1972 re-election ernor, , a gentle- campaign, testified in :federal; man by the name of Mutscher court under subpoena ob- (former Texas house speaker tained by six Texas defend- Gus Mutschr), former attor- ants who are charged with ney general Waggoner Carr, mail and securities violations. and the lieutenant governor, The defendants, including a ," Mitchell testi- former state attorney'leneral, fied. Waggoner Carr, are iseeking Asked if he 'was aware They dismissal of the cham. They were all Democrats, Mitchell allege the indictm t were answered, "Yes, sir, I had that motivated by a "di cks" scheme of the Nix lec- inf6rmation." ,said,that tion committee. in his convers With "Mr. M tchell denied any knowl- Nixon, or anyone else, he edge of Justice Department did eneniou'at'on of the case for not recall any discussion of • eolitaal purposes. He said his Republican benefits of having top Texas Democrats involved • el- ^on'ern TVF S that the -n- E volvement of Wilson, could in a scandal. t us. u e'rta_dent embarass Gray testified that while ment. Wilson had removed himself Without telling exacty what froth any participation in the • M Nixon had to say about Texas case, he did make one the Wilson involvement, Mitch- recommendation Concerning . ell said he and the President the handling of possible in- agreed to siand behind Wilson dictments of Carr, an old po- and urge him to remain in his litical foe in Texas. job after discussing the case Carr had unsuccessfully op- at the White House in mid- posed Wilson for attorney gen- summer eral in 1963 and had then run "Our obvious concern was against Sen. (R- not what Mr. Wilson might Texas) in 1S66. Wilson, a for- have done or not have done, mer Democrat turned Republi- but what the public might can 'publicly supported Tower think about the gituatidn," • n that race. Mitchell said. "I stilr'have the Gray tesdfied that shortly I ufmicst confidence in Mr Wil- son:" -Wilson, who had removed himself from the Justice De-