The Sacramento Bee from Sacramento, California on May 9, 1987 · 1
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The Sacramento Bee from Sacramento, California · 1

Sacramento, California
Issue Date:
Saturday, May 9, 1987
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r Hvirim 1 nwrow -ntT waattt SCENE Cl Plugging capita) overe years ::: iuisu Metro FINAL 1 aeram ©1987 The Sacramento Bee Volume 261 Saturday May 9 1987 Founded 1 857 25$ Gary Hart’s wife Lee and longtime announces his withdrawal from the Saying “I am not a beaten man” State more parched than experts thought By Thom Akeman Bee Staff Writer The final figures were tallied Friday and state and federal water officials acknowledged an even drier year for the state than they had forecast River flows were measured at about half their normal volumes and a new water shortage that could threaten the year’s orange crop was declared in the San Joaquin Valley In general rivers south of Lake Shasta are all carrying less than half their normal volumes as the last of the snow melts and runs down from the Sierra Nevada PTL discloses bugging in offices ‘ghosts’ on staff By Art Harris and Michael Isikoff Washington Post FORT MILL SC — The new directors of PTL revealed Friday that an elaborate electronic bugging system had beeh found inside the lavish corporate headquarters of defrocked evangelist Jim Bakker Itwas also disclosed that hundreds of thousands of dollars had been paid to consultants for work never done and that Associated Press aide Billy Shore listen as Hart presidential race Gary Hart rebuked the news media The American River through Sacramento has been measured at about 30 percent of its average flow the Cosumnes at 15 percent the state Department of Water Resources said Folsom Lake could be too low for boats by the 4th of July and is forecast to drop close to its minimum operational level before the next rainy season the US Bureau of Reclamation said In the Fresno area hundreds of farmers and dozens of watef districts that depend on Friant Reser- See WATER back page A22 there were people on the payroll no one could Identify While announcing layoffs of about 200 employees Harry Hargrave the Dallas businessman appointed by the Rev Jerry Falwell as PTL’s chief operating officer said he was stopping lavish executive perks — including a fleet of limousines and Mercedes-Benzes He added that document that could shed light on 1 See PTL back page A22 i l l I Hart bitterly attacks press for wrecking Ihis campaign By Michael Shanahan Bee Washington Bureau DENVER — Gary Hart describing himself as “angry and defiant” blamed and denounced the news media Friday for forcing him to withdraw from the race for the 1988 Democratic presidential nomination Bitterly announcing his decision to pull out former front-runner Hart said the disclosures about his relationship with a 29-year-old model and actress represent a flawed system in American politics that is discouraging the best candidates from running for president Appearing with his wife of 28 years Lee the former Colorado senator said the current practice of political journalism “reduces the press of this nation to hunters and the presidential candidates to being hunted” Hart 50 referred to the surveillance of a town house he owns in Washington by a team of five Miami Herald reporters last weekend and the subsequent story about the time he spent with the woman Donna Rice of Miami The result of the undue interest in the private lives of politicians is “reporters in the bushes false and inaccu for paying more attention to his private life than to the issues INSIDE Singleton odyssey nearly over? Page A3 Slaying suspect hurt in shootout ' Metro B1 Help proposed for loan applicants 4 Secord notes investment plarj Says arms deals were to be tapped for business projects: Fired National Security Council aide Oliver North returns to federal court for a series of skirmishes with independent counsel Lawrence Walsh Page A20 By Michael Wines and William C Rempel Los Angeles Times Richard Secord who has portrayed himself during this week's Iran-Contra hearings as a disinterested patriot planned to invest $350000 in seed money from arms deals in a host of business projects according to his testimony Friday Secord a retired Air Force major general and his business partner Albert A Hakim considered using the money for investments in timber pharmaceuticals cattle feed and wheat byproducts Secord testified Friday Working with a shadowy Army colonel who later News vendor’s ‘family’ feels the loss By Steve Gibson Bee Staff Writer For the first time in a quarter of a century Charles “Chuck” Scheel didn’t show up for work Friday After he failed to arrive at his homemade newsstand at 10th and K streets at 4:30 am police were notified Officers found the body of the popular news vendor a few doors away in his $150-a-month hotel room An autopsy showed that Scheel died of heart disease “He was sort of like a fixture on the K Street Mall" said Sacramento Police Lt Joe Barnes 4 rate stories being printed photographers peeking in our windows and swarms of helicopters hovering over our roof" Hart did not mention information gathered by the Washington Post indicating an affair with another woman The possibility of disclosure of still another apparent episode of Hart’s infidelities according to aides accelerated Hart’s decision to take himself out of the crowded Democratic field Hart withdrew from the race only 24 days after formally announcing his candidacy ending one of the shortest presidential campaigns in American history The conclusion also came less than a week after the first story about his relationship with Rice sent his long-held presidential ambitions into one of the most stunning tail-spins in American political history Although the Herald admitted later it is possible Rice might have left the town house Friday and not stayed overnight there were equally damaging later disclosures about an overnight cruise to Bimini with her sev- See HART back page A22 Demo scramble puts Californian: in the spotlight By Jeff Raimundo Bee Deputy Capital Bureau Chief California has emerged as the potentially decisive battleground in next year’s drive for the Democratic presidential nomination as a result of the overnight disintegration of Gary Hart’s once pre-eminent campaign party leaders and strategists for rival candidates said Friday “The California primary is either going to decide who the nominee is or provide the momentum for someone to win it in an open convention” said Duane Garrett co-chairman of former Arizona Gov Bruce Babbitt’s presidential campaign “Nobody left in the race is capable of putting this thing away before California” Garrett said only hours after Hart withdrew before a nationwide television audience his political hopes dashed by his relationship with a young model With Hart in the race many leading Democrats in the state had been pressuring to move up California’s June 7 primary next year to March or April out of fear that the nomination would be decided much earlier perhaps within a month of opening-round votes in Iowa and New Hampshire For the rest of the day dozens of Scheel’s friends and acquaintances clustered around the newsstand and reminisced “You could set your clock by him" said 68-year-old James Holligan a retired railroad worker who visited with Scheel nearly every day “Rain or shine he was always here” Scheel 76 lived alone in the Golden Hotel a half block from where he worked A familiar sight to thousands of Sacramentans he flashed a smile and offered a pleasant greeting to virtually everyone who walked past His customers were his family Inside story H Opponents express 1 sympathy and sadness that Gary Hart is out of the presidential race A10 An inn in Vermont with friends and aides was the setting where realization seeped in for Hart that it was over A10 H Hart’s withdrawal may cost his campaign $800000 ' that might have been usable ' to pay off his 1 984 : campaign debt A10 But Hart’s withdrawal leaves the race wide open Former National Chairman John White predictedjFri- day that Democrats will go toifreir Atlanta nominating convention£xt year with no clear-cut nominegr” William Carrick MissourtDHp Richard Gephardt’s national tarn- paign manager said: “The chaijces of the process taking much longer to reach a conclusive result arelmbch higher now I think the chances! of California being the major hafrle- ground have been greatly enhanced We are certainly going to acce4£r&te our plans in the state” Except for Colorado HartVstron- gest base of support has beeaali-' fornia scene of his greatest pFQjia- ry-election triumph during &is‘ unsuccessful challenge againsteven- tual Democratic nominee Watfer Mondale in 1984 Z: ! Hart has raised more moQe£in- California than in any other§tate and he raised more here thairlmy other candidate He also tapped the state forlit&top staff: among others his campajgrlco- chairman Charles Manatt anJHey strategists John Emerson JoelPuppi and Alice Travis Hart also hasfcene- See CALIFORNIA paggWUO helped the pair sell arms to the CIA Secord and Bfliim last year tapped an Iran-Contra bank account in Switzerland to invest at least $60000 in a venture to sell suibma-1 chine guns to the Contras and others reliable sQufces said Friday - ’ The gun venture at one time was expected to show a $1 million profit -Z The men also sank $50000 into a cattle feed conapapy but whether money was placed in the other venturpsas not made clear Secord and Hakim jointly controlled Swiss bank accounts that financed the secret sales of weapons to Nicaragua’s Contra rebels and the Iranian government in 1985 and 1986 Secord called the ventures “normal” US businesses aimed at making profits for their owners But most or all See SECORD page A20 But when he wasn’t working he kept to himself “Nobody seems to know much about him” said Sid Friedman 68 who works the afternoon shift at the newsstand “I’ve known him for 22 years and I didn’t know his last name 'til today All I know is that he never took a day off” "He was unfailingly cheerful” said Walter Gunnison a retired newsman who bought papers from Scheel every morning “He never objected to making change He had one of those coin holders on his belt You could give him a twenty and he’d change it See NEWSSTAND page A22 t

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