APest 4 Oct 73 Mitchell Testifies in Texas Fraud Case partment's investigation of the before Wilson resigned from mission was probably going to By Gayle McNutt Shar case because he had bring' tments against Carr gOebial to The Washington P the Justice Department he for • y4,been .Sharp's attor- had made the suggestion that goy rig-40 or 50 alleged vi- DALLAS, Oct. 3—Formeri ney; as the subject of a Jus- any indictments against Carr olations. Wilson recOmnie.nded Attorney General John N. tice Department "executive in- be handled cautiously. Gray temperance in indicting Carr Mitchell today testified that quiry" during the summer of 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 son would "bring up his en- multi-count indictments," Nixon in 1971 to discuss the time an attorney in the civil mity" toward Carr in connec- Gray testified. - involvement of then-Assistant 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- Gray,•another' witness here reveal the conversatiqn. ual when he is down (and with a key figure in a Texas Tuesd#, backed up the state- Gray said he determined that) because Mr. Carr had a stock fraud scandal. ment by Mitchell that the that it was necessary to report large following in Texas, his At that time Wilson, a one- White House interest in the Wilson's statements to Rich- indictment- could hurt the time Texas attorney general, 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- pointee. Democratic officials. —and then received -a full Securities and Exchange Com- Mitchell said he and Mr. 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, Preston Smith, 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 Ben Barnes," 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 did edge of Justice Department not recall any discussion of eneniou'at'on of the case for • Republican benefits of having eolitaal purposes. He said his top Texas Democrats involved • el- ^on'ern TVF S that the -n- in a scandal. E volvement of Wilson, could Gray testified that while t us. u e'rta_dent embarass Wilson had removed himself ment. froth any participation in the Without telling exacty what Texas case, he did make one • M Nixon had to say about recommendation Concerning the Wilson involvement, Mitch- the handling of possible in- . ell said he and the President dictments of Carr, an old po- agreed to siand behind Wilson litical foe in Texas. and urge him to remain in his Carr had unsuccessfully op- job after discussing the case posed Wilson for attorney gen- at the White House in mid- eral in 1963 and had then run summer against Sen. John Tower (R- "Our obvious concern was Texas) in 1S66. Wilson, a for- not what Mr. Wilson might mer Democrat turned Republi- have done or not have done, can 'publicly supported Tower but what the public might • n that race. think about the gituatidn," Gray tesdfied that shortly I Mitchell said. "I stilr'have the ufmicst confidence in Mr Wil- son:" -Wilson, who had removed himself from the Justice De- .