Page 10-Thursday, June 8, 1978-The Michigan Daily
FEC MAY PRESS CHARGES
Carter suspected of election law violations

WASHINGTON (AP) - The Federal
Election Commission (FEC) has ruled
that there is "reasonable cause" to
charge President Carter's 1976 cam-
paign organization with violating
federal election laws, the President's
'In the course of handling
that kind of activity there
might have been a few
minor errors. It wouldn 't
be surprising if there were
two or three technical
riOlatiOns.'
-Robert Lipshutz,
1976 Carter
campaign
treasurer
chief counsel said yesterday.
Robert Lipshutz said Carter's
representatives are negotiating a con-
ciliation agreement with the com-
mission that would spell out the facts of
the case. Another Carter lawyer said
the discussions involved "a few
thousand dollars."
LIPSCHUTZ said "three or four"

items were being discussed with the
commission to determine whether
violations actually occurred. He said
the discussions involved areas that
were "very minor, very technical.",
Ron Eastman, a Washington lawyer
who represented the Carter
organization during the campaign and
has continued in that capacity, said the
negotiations involved "a few thousand
dollars" and a settlement involving one
possible infraction.
He said "a small civil penalty" could
conceivably be assessed and that the
Democratic National Committee,
among other sources, might be tapped
to payit.
DAVID FISKE, a spokesman for the
FEC, refused to comment. The elec-
tions commission is prohibited by law
from commenting on any case under
investigation or negotiation.
Under federal law, such conciliation
agreements cannot be negotiated until
at least four of the six members of the
elections commission have agreed
there is a "reasonable cause" that an
infraction of federal election spending
laws has taken place.
Eastman said there was no timetable
for completing the negotiations, which
he said were "moving along just fine."
LIPSHUTZ, who was the treasurer of
Carter's campaign organization, said it
handled approximately 130,000 con-

tributions and wrote about 20,000 UNDER FEDERAL law four of six
checks on 83 banks in 39 states, the commissioners must agree there is
District of Columbia and Puerto Rico. "reason to believe" a violation has
"In the course of handling that kind of taken place beforeethey can begin an
activity there might have been a few investigation on a compliance matter.
minor errors," he conceded. "It
wouldn't be surprising if there were two Under the next step, "reasonable
or three technical violations," Lipshut- cause" for finding such a violation must
said. But he added, "We're very proud be determined before negotiations for a
of our record." conciliation agreement can begin.
LIPSHUTZ said the discussions If the commission fails to reach
stemmed from a post-campaign audit agreement with Carter, it can drop the
of the Carter organization's financial matter or go to court. But before begin-
statements. The reports were required ning court action, the commission's
by law. majority would have to declare it had
Carter is one of five presidential can- reasonable cause" to prosecute.
didates whose audits haven't been The Atlanta Journal reported the
completed. Ten other audits have been commission's actions in its editions
finished, including that of former yesterday.
President Gerald Ford. According to the newspaper, the
A penalty payment was assessed FEC's action was taken in closed
against former California Gov. Ronald session and was not intended to be
Reagan, who challenged Ford for the made public until a negotiated
Republican presidential nomination, agreement was reached or the matter
for exceeding primary spending limits, went to a federal court.
2 feels property tax squeeze

(Continued from Page 3)
benefit lower income taxpayers more
than wealthier ones just like the income
tax system. "This shifts the buren of
local property taxes from the in-
dividual, and the state picks it up
through other funding sources," Tyler


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said.
However, Converse, who pays $2,000
per year, said he receives no substan-
tial credit from the state; and Bell, who
pays $700 said he receives nothing.
The number of disgruntled taxpayers
is growing within the stae, Michigan
Taypayers United is working toward
amending-the state constitution to keep
property taxes commensurate with the
taxpayer's income. Michigan Citizens
for Reasonable Taxation is another
group with a similar cause.
State
House
shelves
pot vote
(Continued from Page 3}
already failed on another pot bill this
term by passing it one day and un-
passing it the next," the Grosse Pointe
Farms Republican said.
He agreed with pot reform advocate
Perry Bullard that the vote on the
motion was not a test of support for the
bill itself.
HOUSE SPEAKER Bobby Crim said
lawmakers voted to table the bill
because "they don't want to face it."
Many House members face op-
position in a primary election less than
two months away or in the general elec-
tion less than six months from now.
Polls indicate Michigan residents are
sharply divided on the question of
easing pot penalties.
The marijuana bill is similar to a
measure narrowly defeated in the
House last fall.
It eliminates jail terms for possession
of one ounce or less of the drug, but
retains heavy sanctions against drug
pushers and levies a double penaltyfor-
adults who sell potto minors.

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