Northwest Arkansas Times from Fayetteville, Arkansas on October 24, 1974 · Page 6
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Northwest Arkansas Times from Fayetteville, Arkansas · Page 6

Fayetteville, Arkansas
Issue Date:
Thursday, October 24, 1974
Page 6
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Page 6 article text (OCR)

Northwest Arkansas TIMES, Ttiurs., Oct. 24, 1974 FAV1TTIVILLI, ARKANSAS Jacobson's Testimony Deal Challenged DALLAS (AP) -- Justice Department officials today prepared to fight a federal judge's order that could affect their deal to have milk lobbyist Jake Jacobsen testify against former Secretary of the Treasury John fe. Cohnally. The : order was issued Wednesday by U.S. District Court Judge Robert M. Hill -who said that Jacpbsen's im- as special prosecutors in this matter and in response to our duty as officers of the court, we have accepted this responsibility," they said in a joint statement. Hill said t h c special prosecutors were appointed "in order to fulfill and protect t h e public's interest in vigorous prosecution of such (the San Angelo easel an indictment." He said the prosecutors will have "full authority to control inunily-for-testimony deal in ..the Connally case did not ab- isblve him of a crime in Texas. JHill.then appointed three Texas 'prosecutors to try Jacobsen in ithe misapplication of $825,000 in |funds belonging to a San An- ;gelo Savings and -Loan Associ- ;ation. *'. The Justice Department had ·agreed with Jacobsen to drop "the San Angelo charges in ex-change for Jacobsen's testi- · moiiy in the bribery and conspiracy case against Connally. Jacobsen pleaded guilty to a bribery charge in Washington. T h e Justice Department claims that it was Jacobsen who 'gave Connally illegal contributions totaling $10,000 for his help in getting government subsidies for the milk industry. The -contributions reportedly came from Associated .Milk Producers Inc.. a Texas-based milk cooperative for which Jacobsen worked as a lobbyist. TO PROTECT BARGAIN . U,S. Atty. Frank McCovm said Wednesday that tha Justice Department would take "appro- riate affirmative action" to protect its bargain with Jacobsen. He indicated that the judge's order appointing the prosecutors was "without precedent so wa have to study it to see what action we will take." He said he expected to ask the federal appeals court to overturn the action, but added he did not know whether it would be in the form of a direct appeal or somo type of writ. The three men appointed by Hill are Dallas attorneys. They are Wayne 0. Woodruff and Patrick Higginbotha'm who · we're named prosecutors, and Andrew Barr who was chosen as their first assistant. 'The three said they will begin a study of the case immediately. "The oourt. has asked our assistance as attorneys to serve . the course of investigation and litigation relating to the offense charged . . . and to handle all aspects of the case to Ihe same extent as a United States attorney." Hill, who earlier refused to d r o p t h e misapplication charges against Jacobsen, as requested by the Justice Department, had criticized government officials for making the leniency deal with Jacobsen. Hill said the government Iliad made a promise it could not keep and said his court was WAL-MART DISCOUNT CITY not bound by It. Ray Cowan, a former Jacob sen partner, has pleaded guilty in the savings and loan case He will be sentenced later. .lacobscn, informed of Judge Hill's order, declined to make any comments. His Washington attorney, Charles McNeilis, said Jacobsen would testify according to his agreement with federal prosecutors. "I feel sooner or later 'the executive end of this agreement will be fully accomplished, he said. 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