The Capital Times from Madison, Wisconsin • 40

$4 Billion Kitty Is Nice Treasury Plaything called the Exchange Stabilization Fund, is virtually free of the control that Congress is supposed to exercise over the government green. From this exclusive hoard, money has been used to pay for a number -of strange activities from financing secret gold shipments to paying the By ACK ANDERSON with LES WHITTEN WASHINGTON' For more than 40 years, the Treasury Department has had its own private $4 billion kitty to' spend for almost whatever it pleases. This huge collection of cash, formally THE CAPITAL TIMES Founded in 1917 by illiam T. Erjue, 1882-1 970 MILES McMILLIN, tditoruud Publisher ELLIOTT R4ISS, txrrulirr bdilor I) ZW El EEL, lily tJilor ROBERT MELOON, Hanuging bditor JOHN P. HI JkRR 4MB11 IWl.SliIrMilor VRTHINRIl HS, Sports Lditor MVRIkPl I.URWVl HhH.

Ptt Editor 11 A 111 SVM1M.L. kif Photographer salaries of four CLA agents detailed to the Treasury. The fund was established by Congress in 1934 to stabilize the international value of the dollar, a function that has now been taken over largely by the Federal Reserve Bank in New York City. Yet the Treasury has continued to operate the fund, dishing out millions without clearing the expenditures with Congress. A STARTLED Rep.

Sam Gibbons (D-Fla.) who heads a task force on tax expenditures, discovered the loose $4 billion in the Treasurys custody. He found, incredibly, that Treasury officials determine how the money will be spent tnd that only administrative expenses are subject to a General Accounting Office audit. Part of the $4 billion is invested, with the resulting income going back into the fund. The net earnings during the 1974-75 period were $114 million. It should be pointed out that the special fund is entirely legal.

At least in general terms. Congress gave the Treasury Department approval to spend money from the fund for currency stabilization and related activities. But this is tantamount to handing Treasury officials a blank check. Gibbons conducted an investigation to find out how the Treasury officials have been using the blank check. Here are the main The fund is administered by a staff of 500, who are hired directly by the safe for the Secretary of the Treasury ta attend.

A quiet $300 million stabilization agreement was reached with Mexico, an arrangement to supplement the funds the Mexican government receives from the International Monetary Fund. Assistant Treasury Secretary Gerald L. Parsky assured our reporter, Julia Rose, that the Treasury keeps maximum control of the fund. The expenditures are audited by Treasury personnel outside the fund, an annual report is submitted to Congress and the books are open to the General Accounting Office, he said. Washington Wirepulling Arthur Sampson, who ran the General Services Administration during the Nixon era, is relieved to get back in the business world.

It feels good to get up in the morning, go to work, and not have to read the Washington Post, he recently wrote to Commerce Secretary Elliot Richardson. Sampson would rather not read this story, for example, about his attempt to use his Washington connections to secure federal financing for the San-Vel Concrete Corporation. The roly-poly Sampson is now president of San-Vel, which is so hard up that it had to put up its inventory and accounts receivable as collateral to get a loan from the First National Bank of Boston. THE COMPANY is in sore need, therefore, of a government loan, which Sampson would like to wangle from the Economic Development Administra-tioa So he dashed off a friendly, Dear Elliot letter to Richardson. I am going to be in Washington on May 28," wrote Sampson, and would like to drop in and say hello if your schedule is convenient.

The former GSA administrator conceded that he had an ulterior motive. I am president of a corporation which needs financial help, he confessed, and I would like to meet with someone from EDA. I shall appreciate it very much if you can help me. I remember fondly having dinner with you on Pan Am during our flight to London last year and your fine hospitality at your home in London. I also remember working with your charming wife on art work for the London residence.

Footnote: Sampson conceded to our associate, Gary Cohn, that Sap-Vel is in financial trouble and that he is interested in federal aid. He denied that his letter to Richardson was an attempt to get special favors. A Commerce Department spokesman said that Richardson hadnt even seen the letter from Sampson. It was opened by a secretary and routinely routed to the EDA, he said. Copyright, United Feature Syndicate MADISON, Tuesday, May 25, 1976 Chief Justice Horace Wilkie Uncle Phil Has Sights on Presidency ByARTBUCHWALD to know what youre going to promise Why should I be? Nobody Jack Anderson Treasury.

A cool $10 million was used to pay their salaries, another $5 million for administrative expenses during fiscal 1975. By 1977, the Treasury estimates it will cost $20 million to pay all the expenses. Another $100,000 was earmarked in 1975 to pay the salaries of four CIA agents, who are supposed to advise the Secretary of the Treasury on intelligence matters. Back in 1968, the fund financed the secret shipment of $750 million worth of gold from the United States and Canada to the Bank of England. The staff spent over $1 million from the fund in 1975 to pay their travel expenses.

During the same year, about. $500,000 went to reimburse the Army and Air Force for hauling Treasury officials to overseas meetings. During 1974, $40,000 was paid to the Pentagon to inspect international conference sites to make sure it was issues. Ask your Aunt Molly. I have no idea what the issues are.

Thats why Id make the perfect candidate. People dont want their presidential candidates to be clear on the issues. It only confuses them. Uncle Phil, I said, the presidency of the United States is one of the most important jobs in the world. You have to have some ideas on the economy, foreign policy, defense spending, unemployment and things like that.

Why should I tip my hand now? The important thing is to say nothing about these things until you win the nomination. After that Ill deal with the issues. Thats ridiculous, I told him. Even if you dont get specific, we have WASHINGTON My Uncle Phil who lives in Brooklyn has decided to run for president on the Democratic ticket. If I had known what it takes this year to be a presidential candidate, he told me, I would have thrown my hat in the ring months ago.

What makes you think you would have a chance? Well, for one thing. Ive never been to Washington in my life, and that seems to be the main attraction for the voters who are looking for a presidential candidate. THATS ONE of the main prerequisites," I admitted. But what are your other qualifications? I have a great smile, he said. You can see all my teeth when I smile, cant you? Yes, I said, but smiling isnt everything.

Where do you stand on the issues? What issues? The issues of government. I DONT STAND anywhere on the VOICE the people. IM NOT GOING to promise the people anything. Theyre sick and tired of being promised things that the government cant deliver. If anyone asks me what Im going to do, Ill say, I dont know until I become president.

What the American people are looking for is honesty in their candidates. I cant argue with you on that point. But what about government? Are you for government or against it? Im against government interfering where it shouldnt interfere, but Im not against government interfering if it has to. What Im against are the bureaucrats in Washington who dont understand what the people in the country want. What about foreign affairs? Im against Henry Kissinger." "BUT WHAT ARE you for? Im for getting rid of Henry Kissinger.

Everybody running for office seems to be against Henry Kissinger. Cant you be more specific? be a committed Udall supporter. I strongly urge Mr. Bedard to exercise that authority and to replace Greg Dean else is. lI guess youre right, I said.

What other qualifications do you have that make you think you're presidential material? I believe in God. I forgot about that one, I said. What else? 1 I THINK IM the only one who can stop Jimmy Carter. Why do you say that? Because Im a new face. The people are getting tired of seeing Carter on television all the time.

Theyre looking for someone fresh that they havent seen before. Theyre weary of all the old politics. Carters been around too long. Maybe youre right, I said. I guess you have nothing to lose.

How does Aunt Molly feel about your getting in the race? Shes all for it, providing they give us Secret Service men. You cant imagine how dangerous its getting in our neighborhood these days. She says even if I lose shell feel safe shopping in Brooklyn for the next month anyway. Copyright, Los Angeles Times with any one of the dozens of truly deserving Udall volunteers. Michael lardy miration and recognition that helped elect him to the State Senate in 1956.

HE SERVED as Democratic floor leader and was an outstanding lawmaker. Mr. Wilkie more than earned the praise that has been heaped upon him since the news of his death was announced Sunday morning. The praise came from prominent officials, all of whom had been close observers of Mr. Vftlkies rise to prominence in politics, in the practice of law, and finally on the Supreme Court.

Gov. Luceys praise hit the mark squarely: The State of Wisconsin, its people and their system of justice will feel the loss of Chief Justice Horace Wilkie. The governor went on to say: Horace Wilkies life and purpose centered on his sense of responsibility to serve his fellow man and society through the system of government Court reform and a system of justice that was accessible to all, without regard to education, status or position in life was Horace Wilkies dream and all-consuming purpose. High praise indeed, and Horace Wilkie deserved it all. Our sympathies go out to his wife, Marian, his five daughters and other members of the Wilkie family.

a Referendum ought to meet in closed caucuses unless a majority vote approves it beforehand. This is similar to a proposal by Attorney General Bronson C. La Follette. We suggest a different kind of vote a statewide referendum to decide whether the public wants closed-door government. What Liicey or some of the Republican lawmakers who profess to be champions of open government should do is to put the matter to a statewide referendum in next Novembers general election.

LET THE people decide how much secrecy they want in their government. The answer we believe will be an avalanche of Noes. It might also shake some of the arrogance out of some of our lawmakers. a Hurdle Fischer became totally blind after an illness in 1971. In 1972, the Merrillan School Board voted not to renew his contract.

DEATH OF A heart attack has deprived the state and this community of an outstanding citizen Chief Justice Horace VV. Wilkie. The chief justice had been a member of the states highest court since 1962 and its presiding officer since 1974, when he succeeded the late E. Harold Hallows. Mr.

Wilkie will undoubtedly be best remembered for his distinguished judicial career, but he had made his mark in Madison long before former governor Gaylord Nelson appointed him to the Supreme Court. Horace Wilkie played a major role in the post-World War II revival of the state Democratic Party. He served as a member of the band of young liberals who established the Democratic Organizing Committee, the incubator of a distinctive brand of progres-sivism that became the hallmark. of the Wisconsin Democratic endeavors. He ran unsuccessfully for the Second District Congressional seat in 1948, 1950, and 1952 at a time when the seat was held by an ultra-conservative Republican, Glenn Davis.

Although Mr. Wilkie had little chance of success against the entrenched incumbent, his challenge brought him ad- Put Secrecy to THE CAPITAL TIMES views Gov. Luceys call for a special session to deal with needed improvements in the states anti-secrecy law with a great deal of cynicism. Lucey himself has pussyfooted on the issue. It is also highly unlikely the Legislature will enact a law that will close major loopholes in the law especially the present exemption given lawmakers to conduct partisan caucuses behind closed doors.

It ought to be fairly obvious to the general public that the Democratic legislative leadership believes in open government for everyone else but themselves. In his appearance before the Wisconsin Associated Press last weekend, Lucey said he did not think the lawmakers Clearing THIS DECISION not only meant a great deal to me, but to many blind people throughout the world. The blind will get another chance to show the public they are more than someone who has to sit back and do nothing. The words were Richard Fischers. Last week, the State Equal Rights Division recommended to the Industry, Labor and Human Relations Commission that it order the school board in the small, western Wisconsin town of Merrillan to rehire the blind teacher and pay him between $45,000 and $50,000 in back wages of the people state afraid that if the public is allowed to understand the real issues behind the takeover of the abbey that it will have to admit to a gross miscarriage of justice against the Menominee Warriors? A1 Gedicks Lardy Wants Udall Delegate Replaced MADISON Second Congressional District Democrats elected a welldeserving group of Udall delegates to go to the Democratic National Convention.

For the most part the delegates were hard working people who spent countless hours telephining, knocking on doors, on coordinating campaign activities efforts which led to an overwhelming victory in this district. There is one notable exception however Greg Dean who was elected as an alternate delegate. Shortly. after the April 6 primary, I was contacted by Dean and one of his supporters. The supporter explained that Dean wanted to get involved in politics.

Where was Dean when the dozens of Udall volunteers were making that extra phone call or knocking on just one more door? The time to get involved in politics is before election day, not after. If Dean had put in as much effort on Mo Udalls behalf as he put into his own election we might well have won the primary. The state coordinator of the Udall campaign. Bob Bedard, has the delegated authority (from Mo Udall) to reject any delegate he feels mjght not Gedicks Protests Indians Treatment MADISON Someone must cry out at the travesty of justice being perpetrated against the Menominee Warriors by Gov. Lucey, the State Justice Department, District Attorney Stadel-man and the FBIs goon squads under the direction of Sheriff Paddo Fish.

The sentencing of Michael Sturdevant and John Perrote are a continuation of the states effort to cover up the political nature of the repossession of the abbey at Gresham and to prevent any public discussion of the issues that the Menominee Warriors have been trying to raise concerning U.S. legal treaty obligations. The public has yet to learn that the abbey which was occupied by the Warrior Society stood on land that was ceded in an illegal treaty of 1848. The Catholic priests who witnessed the were appalled at the barrels of drink used to lure some Menominees to the treaty council. Even the U.S.

Governments documentary version was forced to record the protests and rejections of the treaty. In addition, the U.S. did not even live up to the terms it had imposed upon the Menominees. The occupation of the abbey and the trials that would follow were seen by the Warriors as a chance to bring these issues into the courtroom, since there was no legal way of bringing the case into the courtroom. Why is the state so determined to silence these voices of protest? Is the FISCHER argued that he could still perform his duties in teaching biology, physical education and outdoor living, despite his blindness.

The Equal Rights Division hearing examiner, Bruce Schrimpf, agreed and in so doing, cleared a major hurdle for blind people in this state. We applaud the decision. I.