Page 2-Tuesday, September 20, 1977-The Michigan Daily

Staffer says Senate committee
did't know of Lance overdrafts


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WASHINGTON (AP) - Senate
committee staff members denied
yesterday that Budget Director Bert
Lance told them about his personal
overdrafts and the federal restric-
tions on his bank before his confirma-
tion hearings.
However, they acknowledged they
knew about substantial overdrafts by
Lance's relatives and that a Republi-
can staff- member raised questions
about Lance's competence.
THE SENATE Governmental Af-
fairs Committee took the unusual
step of calling four of its employes to
testify as it approached the end of its
two-week inquiry into Lance's finan-
cial affairs.
The committee is trying to find out
if it was misled when it voted to
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confirm Lance on Jan. 18.
Meanwhile, President Carter and
L a n c e met privately yesterday.
White House Press Secretary Jody
Powell admitted the meeting took
place, but said.he had no informa-
tion on what was discussed or who re-
quested the meeting.
THE WHITE HOUSE spokesman
also said that he and Hamilton Jor-
dan, Carter's principal assistant,
met with the President on Sunday
evening to discuss the Lance matter.
Powell said he did not know when
Lance's fate in government will be
made, adding, "If any decision has
been made, I'm certainly not aware
OfUit."
The press secretary reported that
phone calls and mailgrams to the
White House and, to Lance's office
ran heavily in the budget. chief's
favor last Thursday through Satur-
day.
POWELL SAID he thought Lance's
Senate testimony "looks even better
from the vantage point of a couple of
days than it did at the time."
In his three days of testimony last
week, Lance said he told the commit-

tee staff Jan. 13 about his personal
overdrafts and an agreement be-
tween the Calhound First National
Bank and the comptroller of the
currency to end the overdrafts.
David Schaefer, former counsel to
the committee, said the Comptroller
of the Currency's office had reported
that Lance's relatives had over-
drawn checking accounts by as much,
as $300,000 in the Calhoun First
National Bank.
SCHAEFER SAID that at a 15-
minute meeting on Jan. 18, Lance
denied news accounts that Labelle
Lance, the budget director's wife,
had substantial overdrafts. However,
Schaefer acknowledged later, the
staff did not ask him specifically
about his own or his wife's over-
drawn accounts.
John Childers, chief GOP counsel,
wrote a memo to senators referring
to the overdrafts and asked at the end,
of the note:
"Does this say anything about
Lance's administrative or manager-
ial competence? What about the pat-
tern of favors to family from bank
funds? Is a man whose bank has been
run loosely and with bad bookkeeping

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practices competent to run the
finances of the entire federal gov-
ernment? Do we need further com-
mittee investigation?"
Another staff member had put a
notation on Childers" memo, how-
ever, marking off the major issues as
resolved. "
SEN. SAM NUNN, (D-Ga.), asked
Childers if the staff should have
pursued the news accounts more
vigorously even though Lance de-
nied them.-
"I had no reason to call on a nom-
inee to be OMB director to chal-
lenge his veracity at that time," he
said.
Chairman Abraham Ribicoff (D-
Conn.), said any further study of
Lance's affairs will be put off for
another two weeks while Congress
works on pressing legislation.
"The Senate committee cannot un-
confirm a nominee," he said. It is
now a question to be settled between
Carter and Lance, he said.
Sen. Charles Percy (R-Ill.), said
Lance should step down. He agreed
with President Carter that Lance
may have enhanced his position
during the hearings but he said it was
only because of clever answers.
"IN MY JUDGMENT, Bert Lance
should step down for the good of the
country and the administration to
which he i's so loyal and which has
been so loyal to him," Percy said.
P e r c y claimed the evidence
showed that Lance may have violat-
ed federal law by taking overdrafts
of more than $5,000 from a bank
which he headed and that he "ap-
pears to have made false state-
ments" to at least one of two banks to
which he pledged the same shares of
stock, in order to secure loans.
Percy also said Lance engaged in a
"double standard" by using bank-
owned aircraft for trips which other
persons would have had to pay for
themselves.
U'seeks
new talent
By KEITH RICHBURG
The great University talent hunt is
on.
The search committees have been
formed, the nominations are flowing
in, and all-that-rF4mains is =the
methodical and meticulous process
of screening out and selecting next
year's heads of the Law School,
Business School, School of Eduda-
tion, and a new director of Universi-
ty Libraries.
Retiring at age 65 will be Dean
Wilbur Cohen (Education) and Dean
Floyd Bond (Business). Also leaving
at the required retirement age, 65,
will be library director Frederick
Wagman.
LAW SCHOOL Dean Theodore St.
Antoine, 48, is stepping down to
resume teaching.
The search committees to fill the
vacated posts have already held
preliminary meetings, attended by
University President Robben Flem-
ing and Vice-President Harold Sha-
piro.
F 1 e m i n g reminded committee
members at the opening session of
each committee "to make sure that
affirmative action guidelines will be
met," according to Prof. Gunter
Duffey who sits on the Business
School selection committee.
Minorities and women hold places
on each of the four selection commit-
tees.
Dougherty said that most commit-
tees are "going for an early spring
d e ad 1i n e," although Education
School selection committee chair-

man Joseph Payne said his commit-
tee is shooting for completion of its
selection by Jan. 13.
NOMINATIONS are being solicited
from students and faculty for the va-
cant posts. The criteria, Dougherty
says, are set by the executive vice-
president of the schools involved and
by the committee members.
None of the, committees have
discussed the criteria for their
candidates yet.
Committee chairmen are Profs.
Paul McCracken (business), Joseph
Payne (education), and Francis
Allen (law). Robert Warner chairs
the search committee for the new
director of libraries.
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