The Sacramento Bee from Sacramento, California • 1

Hvirim 1 nwrow -ntT waattt SCENE Cl Plugging capita) overe years iuisu Metro FINAL 1 aeram The Sacramento Bee Volume 261 Saturday May 9 1987 Founded 1 857 Hart bitterly attacks press for wrecking Ihis campaign By Michael Shanahan Bee Washington Bureau DENVER Gary Hart describing himself as and 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 the press of this nation to hunters and the presidential candidates to being 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 in the bushes false and inaccu 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 infidelities according to aides accelerated 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 Inside story 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 withdrawal may cost his campaign $800000 that might have been usable to pay off his 1 984 campaign debt A10 Associated Press aide Billy Shore listen as Hart presidential race Demo scramble puts Californian: in the spotlight Gary wife Lee and longtime announces his withdrawal from the Saying am not a beaten Gary But withdrawal leaves the race wide open Former National Chairman John White predictedjFri- day that Democrats will go toifreir Atlanta nominating year with no clear-cut William Carrick MissourtDHp Richard national tarn- paign manager said: 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 our plans in the Except for Colorado HartVstron- gest base of support has beeaali-' fornia scene of his greatest pFQjia- ry-election triumph during unsuccessful challenge againsteven- tual Democratic nominee Watfer Mondale in 1984 Hart has raised more California than in any and he raised more here thairlmy other candidate He also tapped the state staff: among others his campajgrlco- chairman Charles Manatt anJHey strategists John Emerson JoelPuppi and Alice Travis Hart also hasfcene- See CALIFORNIA paggWUO for paying more attention to his private life than to the issues 4 Secord notes investment plarj Says arms deals were to be tapped for business projects: State more parched than experts thought By Jeff Raimundo Bee Deputy Capital Bureau Chief California has emerged as the potentially decisive battleground in next drive for the Democratic presidential nomination as a result of the overnight disintegration of Gary once pre-eminent campaign party leaders and strategists for rival candidates said Friday California primary is either going to decide who the nominee is or provide the momentum for someone to win it in an open said Duane Garrett co-chairman of former Arizona Gov Bruce presidential campaign left in the race is capable of putting this thing away before 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 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 friends and acquaintances clustered around the newsstand and reminisced could set your clock by him" said 68-year-old James Holligan a retired railroad worker who visited with Scheel nearly every day or shine he was always 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 helped the pair last year tapped to invest at chine guns to the said Friday The gun venture million profit The men also but whether money not made clear Secord and that financed Contra 1985 and 1986 Secord called aimed at making INSIDE Singleton odyssey nearly over? Page A3 Slaying suspect hurt in shootout Metro B1 Help proposed for loan applicants 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 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 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 sell arms to the CIA Secord and Bfliim an Iran-Contra bank account in Switzerland least $60000 in a venture to sell suibma-1 Contras and others reliable sQufces at one time was expected to show a $1 -Z sank $50000 into a cattle feed conapapy was placed in the other venturpsas Hakim jointly controlled Swiss bank accounts the secret sales of weapons to rebels and the Iranian government in the ventures US businesses profits for their owners But most or all See SECORD page A20 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 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 News feels the loss PTL discloses bugging in offices on staff But when he working he kept to himself seems to know much about said Sid Friedman 68 who works the afternoon shift at the newsstand known him for 22 years and I know his last name 'til today All I know is that he never took a day "He was unfailingly said Walter Gunnison a retired newsman who bought papers from Scheel every morning never objected to making change He had one of those coin holders on his belt You could give him a twenty and change it See NEWSSTAND page A22 By Steve Gibson Bee Staff Writer For the first time in a quarter of a century Charles Scheel show up for work Friday After he failed to arrive at his homemade newsstand at 10th and 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 was sort of like a fixture on the Street Mall" said Sacramento Police Lt Joe Barnes 4 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 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 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 I.